104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 HB2798 Introduced , by Rep. Tony M. McCombie SYNOPSIS AS INTRODUCED: 30 ILCS 105/6z-18 from Ch. 127, par. 142z-1830 ILCS 105/6z-20 from Ch. 127, par. 142z-2035 ILCS 105/3-635 ILCS 105/3-1035 ILCS 105/935 ILCS 120/2-835 ILCS 120/2-1035 ILCS 120/3 Amends the Use Tax Act, the Retailers' Occupation Tax Act, and the State Finance Act. Provides for a sales tax holiday on school supplies during the first 7 days of August of each calendar year. Effective immediately. LRB104 03457 HLH 19656 b A BILL FOR 104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 HB2798 Introduced , by Rep. Tony M. McCombie SYNOPSIS AS INTRODUCED: 30 ILCS 105/6z-18 from Ch. 127, par. 142z-1830 ILCS 105/6z-20 from Ch. 127, par. 142z-2035 ILCS 105/3-635 ILCS 105/3-1035 ILCS 105/935 ILCS 120/2-835 ILCS 120/2-1035 ILCS 120/3 30 ILCS 105/6z-18 from Ch. 127, par. 142z-18 30 ILCS 105/6z-20 from Ch. 127, par. 142z-20 35 ILCS 105/3-6 35 ILCS 105/3-10 35 ILCS 105/9 35 ILCS 120/2-8 35 ILCS 120/2-10 35 ILCS 120/3 Amends the Use Tax Act, the Retailers' Occupation Tax Act, and the State Finance Act. Provides for a sales tax holiday on school supplies during the first 7 days of August of each calendar year. Effective immediately. LRB104 03457 HLH 19656 b LRB104 03457 HLH 19656 b A BILL FOR
104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 HB2798 Introduced , by Rep. Tony M. McCombie SYNOPSIS AS INTRODUCED:
30 ILCS 105/6z-18 from Ch. 127, par. 142z-1830 ILCS 105/6z-20 from Ch. 127, par. 142z-2035 ILCS 105/3-635 ILCS 105/3-1035 ILCS 105/935 ILCS 120/2-835 ILCS 120/2-1035 ILCS 120/3 30 ILCS 105/6z-18 from Ch. 127, par. 142z-18 30 ILCS 105/6z-20 from Ch. 127, par. 142z-20 35 ILCS 105/3-6 35 ILCS 105/3-10 35 ILCS 105/9 35 ILCS 120/2-8 35 ILCS 120/2-10 35 ILCS 120/3
30 ILCS 105/6z-18 from Ch. 127, par. 142z-18
30 ILCS 105/6z-20 from Ch. 127, par. 142z-20
35 ILCS 105/3-6
35 ILCS 105/3-10
35 ILCS 105/9
35 ILCS 120/2-8
35 ILCS 120/2-10
35 ILCS 120/3
Amends the Use Tax Act, the Retailers' Occupation Tax Act, and the State Finance Act. Provides for a sales tax holiday on school supplies during the first 7 days of August of each calendar year. Effective immediately.
LRB104 03457 HLH 19656 b LRB104 03457 HLH 19656 b
LRB104 03457 HLH 19656 b
A BILL FOR
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HB2798 LRB104 03457 HLH 19656 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 Section 5. The State Finance Act is amended by changing
5 Sections 6z-18 and 6z-20 as follows:
6 (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
7 Sec. 6z-18. Local Government Tax Fund. A portion of the
8 money paid into the Local Government Tax Fund from sales of
9 tangible personal property taxed at the 1% rate under the
10 Retailers' Occupation Tax Act and the Service Occupation Tax
11 Act, which occurred in municipalities, shall be distributed to
12 each municipality based upon the sales which occurred in that
13 municipality. The remainder shall be distributed to each
14 county based upon the sales which occurred in the
15 unincorporated area of that county.
16 Moneys transferred from the Grocery Tax Replacement Fund
17 to the Local Government Tax Fund under Section 6z-130 shall be
18 treated under this Section in the same manner as if they had
19 been remitted with the return on which they were reported.
20 A portion of the money paid into the Local Government Tax
21 Fund from the 6.25% general use tax rate on the selling price
22 of tangible personal property which is purchased outside
23 Illinois at retail from a retailer and which is titled or
104TH GENERAL ASSEMBLY
State of Illinois
2025 and 2026 HB2798 Introduced , by Rep. Tony M. McCombie SYNOPSIS AS INTRODUCED:
30 ILCS 105/6z-18 from Ch. 127, par. 142z-1830 ILCS 105/6z-20 from Ch. 127, par. 142z-2035 ILCS 105/3-635 ILCS 105/3-1035 ILCS 105/935 ILCS 120/2-835 ILCS 120/2-1035 ILCS 120/3 30 ILCS 105/6z-18 from Ch. 127, par. 142z-18 30 ILCS 105/6z-20 from Ch. 127, par. 142z-20 35 ILCS 105/3-6 35 ILCS 105/3-10 35 ILCS 105/9 35 ILCS 120/2-8 35 ILCS 120/2-10 35 ILCS 120/3
30 ILCS 105/6z-18 from Ch. 127, par. 142z-18
30 ILCS 105/6z-20 from Ch. 127, par. 142z-20
35 ILCS 105/3-6
35 ILCS 105/3-10
35 ILCS 105/9
35 ILCS 120/2-8
35 ILCS 120/2-10
35 ILCS 120/3
Amends the Use Tax Act, the Retailers' Occupation Tax Act, and the State Finance Act. Provides for a sales tax holiday on school supplies during the first 7 days of August of each calendar year. Effective immediately.
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A BILL FOR
30 ILCS 105/6z-18 from Ch. 127, par. 142z-18
30 ILCS 105/6z-20 from Ch. 127, par. 142z-20
35 ILCS 105/3-6
35 ILCS 105/3-10
35 ILCS 105/9
35 ILCS 120/2-8
35 ILCS 120/2-10
35 ILCS 120/3
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1 registered by any agency of this State's government shall be
2 distributed to municipalities as provided in this paragraph.
3 Each municipality shall receive the amount attributable to
4 sales for which Illinois addresses for titling or registration
5 purposes are given as being in such municipality. The
6 remainder of the money paid into the Local Government Tax Fund
7 from such sales shall be distributed to counties. Each county
8 shall receive the amount attributable to sales for which
9 Illinois addresses for titling or registration purposes are
10 given as being located in the unincorporated area of such
11 county.
12 A portion of the money paid into the Local Government Tax
13 Fund from the 6.25% general rate (and, beginning July 1, 2000
14 and through December 31, 2000, the 1.25% rate on motor fuel and
15 gasohol, and during a sales tax holiday period, as defined in
16 Section 3-6 of the Use Tax Act, beginning on August 6, 2010
17 through August 15, 2010, and beginning again on August 5, 2022
18 through August 14, 2022, the 1.25% rate on sales tax holiday
19 items) on sales subject to taxation under the Retailers'
20 Occupation Tax Act and the Service Occupation Tax Act, which
21 occurred in municipalities, shall be distributed to each
22 municipality, based upon the sales which occurred in that
23 municipality. The remainder shall be distributed to each
24 county, based upon the sales which occurred in the
25 unincorporated area of such county.
26 For the purpose of determining allocation to the local
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1 government unit, a retail sale by a producer of coal or other
2 mineral mined in Illinois is a sale at retail at the place
3 where the coal or other mineral mined in Illinois is extracted
4 from the earth. This paragraph does not apply to coal or other
5 mineral when it is delivered or shipped by the seller to the
6 purchaser at a point outside Illinois so that the sale is
7 exempt under the United States Constitution as a sale in
8 interstate or foreign commerce.
9 Whenever the Department determines that a refund of money
10 paid into the Local Government Tax Fund should be made to a
11 claimant instead of issuing a credit memorandum, the
12 Department shall notify the State Comptroller, who shall cause
13 the order to be drawn for the amount specified, and to the
14 person named, in such notification from the Department. Such
15 refund shall be paid by the State Treasurer out of the Local
16 Government Tax Fund.
17 As soon as possible after the first day of each month,
18 beginning January 1, 2011, upon certification of the
19 Department of Revenue, the Comptroller shall order
20 transferred, and the Treasurer shall transfer, to the STAR
21 Bonds Revenue Fund the local sales tax increment, as defined
22 in the Innovation Development and Economy Act, collected
23 during the second preceding calendar month for sales within a
24 STAR bond district and deposited into the Local Government Tax
25 Fund, less 3% of that amount, which shall be transferred into
26 the Tax Compliance and Administration Fund and shall be used
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1 by the Department, subject to appropriation, to cover the
2 costs of the Department in administering the Innovation
3 Development and Economy Act.
4 After the monthly transfer to the STAR Bonds Revenue Fund,
5 on or before the 25th day of each calendar month, the
6 Department shall prepare and certify to the Comptroller the
7 disbursement of stated sums of money to named municipalities
8 and counties, the municipalities and counties to be those
9 entitled to distribution of taxes or penalties paid to the
10 Department during the second preceding calendar month. The
11 amount to be paid to each municipality or county shall be the
12 amount (not including credit memoranda) collected during the
13 second preceding calendar month by the Department and paid
14 into the Local Government Tax Fund, plus an amount the
15 Department determines is necessary to offset any amounts which
16 were erroneously paid to a different taxing body, and not
17 including an amount equal to the amount of refunds made during
18 the second preceding calendar month by the Department, and not
19 including any amount which the Department determines is
20 necessary to offset any amounts which are payable to a
21 different taxing body but were erroneously paid to the
22 municipality or county, and not including any amounts that are
23 transferred to the STAR Bonds Revenue Fund. Within 10 days
24 after receipt, by the Comptroller, of the disbursement
25 certification to the municipalities and counties, provided for
26 in this Section to be given to the Comptroller by the
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1 Department, the Comptroller shall cause the orders to be drawn
2 for the respective amounts in accordance with the directions
3 contained in such certification.
4 When certifying the amount of monthly disbursement to a
5 municipality or county under this Section, the Department
6 shall increase or decrease that amount by an amount necessary
7 to offset any misallocation of previous disbursements. The
8 offset amount shall be the amount erroneously disbursed within
9 the 6 months preceding the time a misallocation is discovered.
10 The provisions directing the distributions from the
11 special fund in the State treasury provided for in this
12 Section shall constitute an irrevocable and continuing
13 appropriation of all amounts as provided herein. The State
14 Treasurer and State Comptroller are hereby authorized to make
15 distributions as provided in this Section.
16 In construing any development, redevelopment, annexation,
17 preannexation, or other lawful agreement in effect prior to
18 September 1, 1990, which describes or refers to receipts from
19 a county or municipal retailers' occupation tax, use tax or
20 service occupation tax which now cannot be imposed, such
21 description or reference shall be deemed to include the
22 replacement revenue for such abolished taxes, distributed from
23 the Local Government Tax Fund.
24 As soon as possible after March 8, 2013 (the effective
25 date of Public Act 98-3), the State Comptroller shall order
26 and the State Treasurer shall transfer $6,600,000 from the
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1 Local Government Tax Fund to the Illinois State Medical
2 Disciplinary Fund.
3 (Source: P.A. 102-700, Article 60, Section 60-10, eff.
4 4-19-22; 102-700, Article 65, Section 65-15, eff. 4-19-22;
5 103-154, eff. 6-30-23.)
6 (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20)
7 Sec. 6z-20. County and Mass Transit District Fund. Of the
8 money received from the 6.25% general rate (and, beginning
9 July 1, 2000 and through December 31, 2000, the 1.25% rate on
10 motor fuel and gasohol, and beginning on August 6, 2010
11 through August 15, 2010, and during a sales tax holiday
12 period, as defined in Section 3-6 of the Use Tax Act, beginning
13 again on August 5, 2022 through August 14, 2022, the 1.25% rate
14 on sales tax holiday items) on sales subject to taxation under
15 the Retailers' Occupation Tax Act and Service Occupation Tax
16 Act and paid into the County and Mass Transit District Fund,
17 distribution to the Regional Transportation Authority tax
18 fund, created pursuant to Section 4.03 of the Regional
19 Transportation Authority Act, for deposit therein shall be
20 made based upon the retail sales occurring in a county having
21 more than 3,000,000 inhabitants. The remainder shall be
22 distributed to each county having 3,000,000 or fewer
23 inhabitants based upon the retail sales occurring in each such
24 county.
25 For the purpose of determining allocation to the local
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1 government unit, a retail sale by a producer of coal or other
2 mineral mined in Illinois is a sale at retail at the place
3 where the coal or other mineral mined in Illinois is extracted
4 from the earth. This paragraph does not apply to coal or other
5 mineral when it is delivered or shipped by the seller to the
6 purchaser at a point outside Illinois so that the sale is
7 exempt under the United States Constitution as a sale in
8 interstate or foreign commerce.
9 Of the money received from the 6.25% general use tax rate
10 on tangible personal property which is purchased outside
11 Illinois at retail from a retailer and which is titled or
12 registered by any agency of this State's government and paid
13 into the County and Mass Transit District Fund, the amount for
14 which Illinois addresses for titling or registration purposes
15 are given as being in each county having more than 3,000,000
16 inhabitants shall be distributed into the Regional
17 Transportation Authority tax fund, created pursuant to Section
18 4.03 of the Regional Transportation Authority Act. The
19 remainder of the money paid from such sales shall be
20 distributed to each county based on sales for which Illinois
21 addresses for titling or registration purposes are given as
22 being located in the county. Any money paid into the Regional
23 Transportation Authority Occupation and Use Tax Replacement
24 Fund from the County and Mass Transit District Fund prior to
25 January 14, 1991, which has not been paid to the Authority
26 prior to that date, shall be transferred to the Regional
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1 Transportation Authority tax fund.
2 Whenever the Department determines that a refund of money
3 paid into the County and Mass Transit District Fund should be
4 made to a claimant instead of issuing a credit memorandum, the
5 Department shall notify the State Comptroller, who shall cause
6 the order to be drawn for the amount specified, and to the
7 person named, in such notification from the Department. Such
8 refund shall be paid by the State Treasurer out of the County
9 and Mass Transit District Fund.
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
16 during the second preceding calendar month for sales within a
17 STAR bond district and deposited into the County and Mass
18 Transit District Fund, less 3% of that amount, which shall be
19 transferred into the Tax Compliance and Administration Fund
20 and shall be used by the Department, subject to appropriation,
21 to cover the costs of the Department in administering the
22 Innovation Development and Economy Act.
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 Regional
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1 Transportation Authority and to named counties, the counties
2 to be those entitled to distribution, as hereinabove provided,
3 of taxes or penalties paid to the Department during the second
4 preceding calendar month. The amount to be paid to the
5 Regional Transportation Authority and each county having
6 3,000,000 or fewer inhabitants shall be the amount (not
7 including credit memoranda) collected during the second
8 preceding calendar month by the Department and paid into the
9 County and Mass Transit District Fund, plus an amount the
10 Department determines is necessary to offset any amounts which
11 were erroneously paid to a different taxing body, and not
12 including an amount equal to the amount of refunds made during
13 the second preceding calendar month by the Department, and not
14 including any amount which the Department determines is
15 necessary to offset any amounts which were payable to a
16 different taxing body but were erroneously paid to the
17 Regional Transportation Authority or county, and not including
18 any amounts that are transferred to the STAR Bonds Revenue
19 Fund, less 1.5% of the amount to be paid to the Regional
20 Transportation Authority, which shall be transferred into the
21 Tax Compliance and Administration Fund. The Department, at the
22 time of each monthly disbursement to the Regional
23 Transportation Authority, shall prepare and certify to the
24 State Comptroller the amount to be transferred into the Tax
25 Compliance and Administration Fund under this Section. Within
26 10 days after receipt, by the Comptroller, of the disbursement
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1 certification to the Regional Transportation Authority,
2 counties, and the Tax Compliance and Administration Fund
3 provided for in this Section to be given to the Comptroller by
4 the Department, the Comptroller shall cause the orders to be
5 drawn for the respective amounts in accordance with the
6 directions contained in such certification.
7 When certifying the amount of a monthly disbursement to
8 the Regional Transportation Authority or to a county under
9 this Section, the Department shall increase or decrease that
10 amount by an amount necessary to offset any misallocation of
11 previous disbursements. The offset amount shall be the amount
12 erroneously disbursed within the 6 months preceding the time a
13 misallocation is discovered.
14 The provisions directing the distributions from the
15 special fund in the State Treasury provided for in this
16 Section and from the Regional Transportation Authority tax
17 fund created by Section 4.03 of the Regional Transportation
18 Authority Act shall constitute an irrevocable and continuing
19 appropriation of all amounts as provided herein. The State
20 Treasurer and State Comptroller are hereby authorized to make
21 distributions as provided in this Section.
22 In construing any development, redevelopment, annexation,
23 preannexation or other lawful agreement in effect prior to
24 September 1, 1990, which describes or refers to receipts from
25 a county or municipal retailers' occupation tax, use tax or
26 service occupation tax which now cannot be imposed, such
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1 description or reference shall be deemed to include the
2 replacement revenue for such abolished taxes, distributed from
3 the County and Mass Transit District Fund or Local Government
4 Distributive Fund, as the case may be.
5 (Source: P.A. 102-700, eff. 4-19-22.)
6 Section 10. The Use Tax Act is amended by changing
7 Sections 3-6, 3-10, and 9 as follows:
8 (35 ILCS 105/3-6)
9 Sec. 3-6. Sales tax holiday items.
10 (a) Any tangible personal property described in this
11 subsection is a sales tax holiday item and qualifies for the
12 1.25% reduced rate of tax during the sales tax holiday period
13 for the period set forth in Section 3-10 of this Act
14 (hereinafter referred to as the Sales Tax Holiday Period). The
15 reduced rate on these items shall be administered under the
16 provisions of subsection (b) of this Section. The following
17 items are subject to the reduced rate:
18 (1) Clothing items that each have a retail selling
19 price of less than $125.
20 "Clothing" means, unless otherwise specified in this
21 Section, all human wearing apparel suitable for general
22 use. "Clothing" does not include clothing accessories,
23 protective equipment, or sport or recreational equipment.
24 "Clothing" includes, but is not limited to: household and
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1 shop aprons; athletic supporters; bathing suits and caps;
2 belts and suspenders; boots; coats and jackets; ear muffs;
3 footlets; gloves and mittens for general use; hats and
4 caps; hosiery; insoles for shoes; lab coats; neckties;
5 overshoes; pantyhose; rainwear; rubber pants; sandals;
6 scarves; shoes and shoelaces; slippers; sneakers; socks
7 and stockings; steel-toed shoes; underwear; and school
8 uniforms.
9 "Clothing accessories" means, but is not limited to:
10 briefcases; cosmetics; hair notions, including, but not
11 limited to barrettes, hair bows, and hair nets; handbags;
12 handkerchiefs; jewelry; non-prescription sunglasses;
13 umbrellas; wallets; watches; and wigs and hair pieces.
14 "Protective equipment" means, but is not limited to:
15 breathing masks; clean room apparel and equipment; ear and
16 hearing protectors; face shields; hard hats; helmets;
17 paint or dust respirators; protective gloves; safety
18 glasses and goggles; safety belts; tool belts; and
19 welder's gloves and masks.
20 "Sport or recreational equipment" means, but is not
21 limited to: ballet and tap shoes; cleated or spiked
22 athletic shoes; gloves, including, but not limited to,
23 baseball, bowling, boxing, hockey, and golf gloves;
24 goggles; hand and elbow guards; life preservers and vests;
25 mouth guards; roller and ice skates; shin guards; shoulder
26 pads; ski boots; waders; and wetsuits and fins.
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1 (2) School supplies. "School supplies" means, unless
2 otherwise specified in this Section, items used by a
3 student in a course of study. The purchase of school
4 supplies for use by persons other than students for use in
5 a course of study are not eligible for the reduced rate of
6 tax. "School supplies" do not include school art supplies;
7 school instructional materials; cameras; film and memory
8 cards; videocameras, tapes, and videotapes; computers;
9 cell phones; Personal Digital Assistants (PDAs); handheld
10 electronic schedulers; and school computer supplies.
11 "School supplies" includes, but is not limited to:
12 binders; book bags; calculators; cellophane tape;
13 blackboard chalk; compasses; composition books; crayons;
14 erasers; expandable, pocket, plastic, and manila folders;
15 glue, paste, and paste sticks; highlighters; index cards;
16 index card boxes; legal pads; lunch boxes; markers;
17 notebooks; paper, including loose leaf ruled notebook
18 paper, copy paper, graph paper, tracing paper, manila
19 paper, colored paper, poster board, and construction
20 paper; pencils; pencil leads; pens; ink and ink refills
21 for pens; pencil boxes and other school supply boxes;
22 pencil sharpeners; protractors; rulers; scissors; and
23 writing tablets.
24 "School art supply" means an item commonly used by a
25 student in a course of study for artwork and includes only
26 the following items: clay and glazes; acrylic, tempera,
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1 and oil paint; paintbrushes for artwork; sketch and
2 drawing pads; and watercolors.
3 "School instructional material" means written material
4 commonly used by a student in a course of study as a
5 reference and to learn the subject being taught and
6 includes only the following items: reference books;
7 reference maps and globes; textbooks; and workbooks.
8 "School computer supply" means an item commonly used
9 by a student in a course of study in which a computer is
10 used and applies only to the following items: flashdrives
11 and other computer data storage devices; data storage
12 media, such as diskettes and compact disks; boxes and
13 cases for disk storage; external ports or drives; computer
14 cases; computer cables; computer printers; and printer
15 cartridges, toner, and ink.
16 (b) Administration. Notwithstanding any other provision of
17 this Act, the reduced rate of tax under Section 3-10 of this
18 Act for clothing and school supplies shall be administered by
19 the Department under the provisions of this subsection (b).
20 (1) Bundled sales. Items that qualify for the reduced
21 rate of tax that are bundled together with items that do
22 not qualify for the reduced rate of tax and that are sold
23 for one itemized price will be subject to the reduced rate
24 of tax only if the value of the items that qualify for the
25 reduced rate of tax exceeds the value of the items that do
26 not qualify for the reduced rate of tax.
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1 (2) Coupons and discounts. An unreimbursed discount by
2 the seller reduces the sales price of the property so that
3 the discounted sales price determines whether the sales
4 price is within a sales tax holiday price threshold. A
5 coupon or other reduction in the sales price is treated as
6 a discount if the seller is not reimbursed for the coupon
7 or reduction amount by a third party.
8 (3) Splitting of items normally sold together.
9 Articles that are normally sold as a single unit must
10 continue to be sold in that manner. Such articles cannot
11 be priced separately and sold as individual items in order
12 to obtain the reduced rate of tax. For example, a pair of
13 shoes cannot have each shoe sold separately so that the
14 sales price of each shoe is within a sales tax holiday
15 price threshold.
16 (4) Rain checks. A rain check is a procedure that
17 allows a customer to purchase an item at a certain price at
18 a later time because the particular item was out of stock.
19 Eligible property that customers purchase during the Sales
20 Tax Holiday Period with the use of a rain check will
21 qualify for the reduced rate of tax regardless of when the
22 rain check was issued. Issuance of a rain check during the
23 Sales Tax Holiday Period will not qualify eligible
24 property for the reduced rate of tax if the property is
25 actually purchased after the Sales Tax Holiday Period.
26 (5) Exchanges. The procedure for an exchange in
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1 regards to a sales tax holiday is as follows:
2 (A) If a customer purchases an item of eligible
3 property during the Sales Tax Holiday Period, but
4 later exchanges the item for a similar eligible item,
5 even if a different size, different color, or other
6 feature, no additional tax is due even if the exchange
7 is made after the Sales Tax Holiday Period.
8 (B) If a customer purchases an item of eligible
9 property during the Sales Tax Holiday Period, but
10 after the Sales Tax Holiday Period has ended, the
11 customer returns the item and receives credit on the
12 purchase of a different item, the 6.25% general
13 merchandise sales tax rate is due on the sale of the
14 newly purchased item.
15 (C) If a customer purchases an item of eligible
16 property before the Sales Tax Holiday Period, but
17 during the Sales Tax Holiday Period the customer
18 returns the item and receives credit on the purchase
19 of a different item of eligible property, the reduced
20 rate of tax is due on the sale of the new item if the
21 new item is purchased during the Sales Tax Holiday
22 Period.
23 (6) (Blank).
24 (7) Order date and back orders. For the purpose of a
25 sales tax holiday, eligible property qualifies for the
26 reduced rate of tax if: (i) the item is both delivered to
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1 and paid for by the customer during the Sales Tax Holiday
2 Period or (ii) the customer orders and pays for the item
3 and the seller accepts the order during the Sales Tax
4 Holiday Period for immediate shipment, even if delivery is
5 made after the Sales Tax Holiday Period. The seller
6 accepts an order when the seller has taken action to fill
7 the order for immediate shipment. Actions to fill an order
8 include placement of an "in date" stamp on an order or
9 assignment of an "order number" to an order within the
10 Sales Tax Holiday Period. An order is for immediate
11 shipment when the customer does not request delayed
12 shipment. An order is for immediate shipment
13 notwithstanding that the shipment may be delayed because
14 of a backlog of orders or because stock is currently
15 unavailable to, or on back order by, the seller.
16 (8) Returns. For a 60-day period immediately after the
17 Sales Tax Holiday Period, if a customer returns an item
18 that would qualify for the reduced rate of tax, credit for
19 or refund of sales tax shall be given only at the reduced
20 rate unless the customer provides a receipt or invoice
21 that shows tax was paid at the 6.25% general merchandise
22 rate, or the seller has sufficient documentation to show
23 that tax was paid at the 6.25% general merchandise rate on
24 the specific item. This 60-day period is set solely for
25 the purpose of designating a time period during which the
26 customer must provide documentation that shows that the
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1 appropriate sales tax rate was paid on returned
2 merchandise. The 60-day period is not intended to change a
3 seller's policy on the time period during which the seller
4 will accept returns.
5 (c) The Department may implement the provisions of this
6 Section through the use of emergency rules, along with
7 permanent rules filed concurrently with such emergency rules,
8 in accordance with the provisions of Section 5-45 of the
9 Illinois Administrative Procedure Act. For purposes of the
10 Illinois Administrative Procedure Act, the adoption of rules
11 to implement the provisions of this Section shall be deemed an
12 emergency and necessary for the public interest, safety, and
13 welfare.
14 (d) As used in this Section, "sales tax holiday period"
15 means:
16 (1) from August 6, 2010 through August 15, 2010;
17 (2) from August 5, 2022 through August 14, 2022; and
18 (3) during the first 7 days in August in 2025 and each
19 year thereafter.
20 (Source: P.A. 102-700, eff. 4-19-22.)
21 (35 ILCS 105/3-10)
22 Sec. 3-10. Rate of tax. Unless otherwise provided in this
23 Section, the tax imposed by this Act is at the rate of 6.25% of
24 either the selling price or the fair market value, if any, of
25 the tangible personal property, which, on and after January 1,
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1 2025, includes leases of tangible personal property. In all
2 cases where property functionally used or consumed is the same
3 as the property that was purchased at retail, then the tax is
4 imposed on the selling price of the property. In all cases
5 where property functionally used or consumed is a by-product
6 or waste product that has been refined, manufactured, or
7 produced from property purchased at retail, then the tax is
8 imposed on the lower of the fair market value, if any, of the
9 specific property so used in this State or on the selling price
10 of the property purchased at retail. For purposes of this
11 Section "fair market value" means the price at which property
12 would change hands between a willing buyer and a willing
13 seller, neither being under any compulsion to buy or sell and
14 both having reasonable knowledge of the relevant facts. The
15 fair market value shall be established by Illinois sales by
16 the taxpayer of the same property as that functionally used or
17 consumed, or if there are no such sales by the taxpayer, then
18 comparable sales or purchases of property of like kind and
19 character in Illinois.
20 Beginning on July 1, 2000 and through December 31, 2000,
21 with respect to motor fuel, as defined in Section 1.1 of the
22 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
23 the Use Tax Act, the tax is imposed at the rate of 1.25%.
24 During the sales tax holiday period set forth in Section
25 3-6, Beginning on August 6, 2010 through August 15, 2010, and
26 beginning again on August 5, 2022 through August 14, 2022,
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1 with respect to sales tax holiday items as defined in Section
2 3-6 of this Act, the tax is imposed at the rate of 1.25%.
3 With respect to gasohol, the tax imposed by this Act
4 applies to (i) 70% of the proceeds of sales made on or after
5 January 1, 1990, and before July 1, 2003, (ii) 80% of the
6 proceeds of sales made on or after July 1, 2003 and on or
7 before July 1, 2017, (iii) 100% of the proceeds of sales made
8 after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
9 the proceeds of sales made on or after January 1, 2024 and on
10 or before December 31, 2028, and (v) 100% of the proceeds of
11 sales made after December 31, 2028. If, at any time, however,
12 the tax under this Act on sales of gasohol is imposed at the
13 rate of 1.25%, then the tax imposed by this Act applies to 100%
14 of the proceeds of sales of gasohol made during that time.
15 With respect to mid-range ethanol blends, the tax imposed
16 by this Act applies to (i) 80% of the proceeds of sales made on
17 or after January 1, 2024 and on or before December 31, 2028 and
18 (ii) 100% of the proceeds of sales made thereafter. If, at any
19 time, however, the tax under this Act on sales of mid-range
20 ethanol blends is imposed at the rate of 1.25%, then the tax
21 imposed by this Act applies to 100% of the proceeds of sales of
22 mid-range ethanol blends made during that time.
23 With respect to majority blended ethanol fuel, the tax
24 imposed by this Act does not apply to the proceeds of sales
25 made on or after July 1, 2003 and on or before December 31,
26 2028 but applies to 100% of the proceeds of sales made
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1 thereafter.
2 With respect to biodiesel blends with no less than 1% and
3 no more than 10% biodiesel, the tax imposed by this Act applies
4 to (i) 80% of the proceeds of sales made on or after July 1,
5 2003 and on or before December 31, 2018 and (ii) 100% of the
6 proceeds of sales made after December 31, 2018 and before
7 January 1, 2024. On and after January 1, 2024 and on or before
8 December 31, 2030, the taxation of biodiesel, renewable
9 diesel, and biodiesel blends shall be as provided in Section
10 3-5.1. If, at any time, however, the tax under this Act on
11 sales of biodiesel blends with no less than 1% and no more than
12 10% biodiesel is imposed at the rate of 1.25%, then the tax
13 imposed by this Act applies to 100% of the proceeds of sales of
14 biodiesel blends with no less than 1% and no more than 10%
15 biodiesel made during that time.
16 With respect to biodiesel and biodiesel blends with more
17 than 10% but no more than 99% biodiesel, the tax imposed by
18 this Act does not apply to the proceeds of sales made on or
19 after July 1, 2003 and on or before December 31, 2023. On and
20 after January 1, 2024 and on or before December 31, 2030, the
21 taxation of biodiesel, renewable diesel, and biodiesel blends
22 shall be as provided in Section 3-5.1.
23 Until July 1, 2022 and from July 1, 2023 through December
24 31, 2025, with respect to food for human consumption that is to
25 be consumed off the premises where it is sold (other than
26 alcoholic beverages, food consisting of or infused with adult
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1 use cannabis, soft drinks, and food that has been prepared for
2 immediate consumption), the tax is imposed at the rate of 1%.
3 Beginning on July 1, 2022 and until July 1, 2023, with respect
4 to food for human consumption that is to be consumed off the
5 premises where it is sold (other than alcoholic beverages,
6 food consisting of or infused with adult use cannabis, soft
7 drinks, and food that has been prepared for immediate
8 consumption), the tax is imposed at the rate of 0%. On and
9 after January 1, 2026, food for human consumption that is to be
10 consumed off the premises where it is sold (other than
11 alcoholic beverages, food consisting of or infused with adult
12 use cannabis, soft drinks, candy, and food that has been
13 prepared for immediate consumption) is exempt from the tax
14 imposed by this Act.
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; 103-592,
24 eff. 1-1-25; 103-781, eff. 8-5-24; revised 11-26-24.)
25 (35 ILCS 105/9)
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1 Sec. 9. Except as to motor vehicles, watercraft, aircraft,
2 and trailers that are required to be registered with an agency
3 of this State, each retailer required or authorized to collect
4 the tax imposed by this Act shall pay to the Department the
5 amount of such tax (except as otherwise provided) at the time
6 when he is required to file his return for the period during
7 which such tax was collected, less a discount of 2.1% prior to
8 January 1, 1990, and 1.75% on and after January 1, 1990, or $5
9 per calendar year, whichever is greater, which is allowed to
10 reimburse the retailer for expenses incurred in collecting the
11 tax, keeping records, preparing and filing returns, remitting
12 the tax and supplying data to the Department on request.
13 Beginning with returns due on or after January 1, 2025, the
14 discount allowed in this Section, the Retailers' Occupation
15 Tax Act, the Service Occupation Tax Act, and the Service Use
16 Tax Act, including any local tax administered by the
17 Department and reported on the same return, shall not exceed
18 $1,000 per month in the aggregate for returns other than
19 transaction returns filed during the month. When determining
20 the discount allowed under this Section, retailers shall
21 include the amount of tax that would have been due at the 6.25%
22 rate but for the 1.25% rate imposed on sales tax holiday items
23 under Public Act 102-700 and during the sales tax period set
24 forth in Section 3-6. The discount under this Section is not
25 allowed for the 1.25% portion of taxes paid on aviation fuel
26 that is subject to the revenue use requirements of 49 U.S.C.
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1 47107(b) and 49 U.S.C. 47133. When determining the discount
2 allowed under this Section, retailers shall include the amount
3 of tax that would have been due at the 1% rate but for the 0%
4 rate imposed under Public Act 102-700. In the case of
5 retailers who report and pay the tax on a transaction by
6 transaction basis, as provided in this Section, such discount
7 shall be taken with each such tax remittance instead of when
8 such retailer files his periodic return, but, beginning with
9 returns due on or after January 1, 2025, the discount allowed
10 under this Section and the Retailers' Occupation Tax Act,
11 including any local tax administered by the Department and
12 reported on the same transaction return, shall not exceed
13 $1,000 per month for all transaction returns filed during the
14 month. The discount allowed under this Section is allowed only
15 for returns that are filed in the manner required by this Act.
16 The Department may disallow the discount for retailers whose
17 certificate of registration is revoked at the time the return
18 is filed, but only if the Department's decision to revoke the
19 certificate of registration has become final. A retailer need
20 not remit that part of any tax collected by him to the extent
21 that he is required to remit and does remit the tax imposed by
22 the Retailers' Occupation Tax Act, with respect to the sale of
23 the same property.
24 Where such tangible personal property is sold under a
25 conditional sales contract, or under any other form of sale
26 wherein the payment of the principal sum, or a part thereof, is
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1 extended beyond the close of the period for which the return is
2 filed, the retailer, in collecting the tax (except as to motor
3 vehicles, watercraft, aircraft, and trailers that are required
4 to be registered with an agency of this State), may collect for
5 each tax return period only the tax applicable to that part of
6 the selling price actually received during such tax return
7 period.
8 In the case of leases, except as otherwise provided in
9 this Act, the lessor, in collecting the tax, may collect for
10 each tax return period only the tax applicable to that part of
11 the selling price actually received during such tax return
12 period.
13 Except as provided in this Section, on or before the
14 twentieth day of each calendar month, such retailer shall file
15 a return for the preceding calendar month. Such return shall
16 be filed on forms prescribed by the Department and shall
17 furnish such information as the Department may reasonably
18 require. The return shall include the gross receipts on food
19 for human consumption that is to be consumed off the premises
20 where it is sold (other than alcoholic beverages, food
21 consisting of or infused with adult use cannabis, soft drinks,
22 and food that has been prepared for immediate consumption)
23 which were received during the preceding calendar month,
24 quarter, or year, as appropriate, and upon which tax would
25 have been due but for the 0% rate imposed under Public Act
26 102-700. The return shall also include the amount of tax that
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1 would have been due on food for human consumption that is to be
2 consumed off the premises where it is sold (other than
3 alcoholic beverages, food consisting of or infused with adult
4 use cannabis, soft drinks, and food that has been prepared for
5 immediate consumption) but for the 0% rate imposed under
6 Public Act 102-700.
7 On and after January 1, 2018, except for returns required
8 to be filed prior to January 1, 2023 for motor vehicles,
9 watercraft, aircraft, and trailers that are required to be
10 registered with an agency of this State, with respect to
11 retailers whose annual gross receipts average $20,000 or more,
12 all returns required to be filed pursuant to this Act shall be
13 filed electronically. On and after January 1, 2023, with
14 respect to retailers whose annual gross receipts average
15 $20,000 or more, all returns required to be filed pursuant to
16 this Act, including, but not limited to, returns for motor
17 vehicles, watercraft, aircraft, and trailers that are required
18 to be registered with an agency of this State, shall be filed
19 electronically. Retailers who demonstrate that they do not
20 have access to the Internet or demonstrate hardship in filing
21 electronically may petition the Department to waive the
22 electronic filing requirement.
23 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
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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 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;
16 5-5. The signature of the taxpayer; and
17 6. Such other reasonable information as the Department
18 may require.
19 Each retailer required or authorized to collect the tax
20 imposed by this Act on aviation fuel sold at retail in this
21 State during the preceding calendar month shall, instead of
22 reporting and paying tax on aviation fuel as otherwise
23 required by this Section, report and pay such tax on a separate
24 aviation fuel tax return. The requirements related to the
25 return shall be as otherwise provided in this Section.
26 Notwithstanding any other provisions of this Act to the
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1 contrary, retailers collecting tax on aviation fuel shall file
2 all aviation fuel tax returns and shall make all aviation fuel
3 tax payments by electronic means in the manner and form
4 required by the Department. For purposes of this Section,
5 "aviation fuel" means jet fuel and 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, retailers subject to tax on cannabis shall file all
12 cannabis tax returns and shall make all cannabis tax payments
13 by electronic means in the manner and form required by the
14 Department.
15 Beginning October 1, 1993, a taxpayer who has an average
16 monthly tax liability of $150,000 or more shall make all
17 payments required by rules of the Department by electronic
18 funds transfer. Beginning October 1, 1994, a taxpayer who has
19 an average monthly tax liability of $100,000 or more shall
20 make all payments required by rules of the Department by
21 electronic funds transfer. Beginning October 1, 1995, a
22 taxpayer who has an average monthly tax liability of $50,000
23 or more shall make all payments required by rules of the
24 Department by electronic funds transfer. Beginning October 1,
25 2000, a taxpayer who has an annual tax liability of $200,000 or
26 more shall make all payments required by rules of the
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1 Department by electronic funds transfer. The term "annual tax
2 liability" shall be the sum of the taxpayer's liabilities
3 under this Act, and under all other State and local occupation
4 and use tax laws administered by the Department, for the
5 immediately preceding calendar year. The term "average monthly
6 tax liability" 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
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1 effectuate a program of electronic funds transfer and the
2 requirements of this Section.
3 Before October 1, 2000, if the taxpayer's average monthly
4 tax liability to the Department under this Act, the Retailers'
5 Occupation Tax Act, the Service Occupation Tax Act, the
6 Service Use Tax Act was $10,000 or more during the preceding 4
7 complete calendar quarters, he shall file a return with the
8 Department each month by the 20th day of the month next
9 following the month during which such tax liability is
10 incurred and shall make payments to the Department on or
11 before the 7th, 15th, 22nd and last day of the month during
12 which such liability is incurred. On and after October 1,
13 2000, if the taxpayer's average monthly tax liability to the
14 Department under this Act, the Retailers' Occupation Tax Act,
15 the Service Occupation Tax Act, and the Service Use Tax Act was
16 $20,000 or more during the preceding 4 complete calendar
17 quarters, he shall file a return with the Department each
18 month by the 20th day of the month next following the month
19 during which such tax liability is incurred and shall make
20 payment to the Department on or before the 7th, 15th, 22nd and
21 last day of the month during which such liability is incurred.
22 If the month during which such tax liability is incurred began
23 prior to January 1, 1985, each payment shall be in an amount
24 equal to 1/4 of the taxpayer's actual liability for the month
25 or an amount set by the Department not to exceed 1/4 of the
26 average monthly liability of the taxpayer to the Department
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1 for the preceding 4 complete calendar quarters (excluding the
2 month of highest liability and the month of lowest liability
3 in such 4 quarter period). If the month during which such tax
4 liability is incurred begins on or after January 1, 1985, and
5 prior to January 1, 1987, each payment shall be in an amount
6 equal to 22.5% of the taxpayer's actual liability for the
7 month or 27.5% of the taxpayer's liability for the same
8 calendar month of the preceding year. If the month during
9 which such tax liability is incurred begins on or after
10 January 1, 1987, and prior to January 1, 1988, each payment
11 shall be in an amount equal to 22.5% of the taxpayer's actual
12 liability for the month or 26.25% of the taxpayer's liability
13 for the same calendar month of the preceding year. If the month
14 during which such tax liability is incurred begins on or after
15 January 1, 1988, and prior to January 1, 1989, or begins on or
16 after January 1, 1996, each payment shall be in an amount equal
17 to 22.5% of the taxpayer's actual liability for the month or
18 25% of the taxpayer's liability for the same calendar month of
19 the preceding year. If the month during which such tax
20 liability is incurred begins on or after January 1, 1989, and
21 prior to January 1, 1996, each payment shall be in an amount
22 equal to 22.5% of the taxpayer's actual liability for the
23 month or 25% of the taxpayer's liability for the same calendar
24 month of the preceding year or 100% of the taxpayer's actual
25 liability for the quarter monthly reporting period. The amount
26 of such quarter monthly payments shall be credited against the
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1 final tax liability of the taxpayer's return for that month.
2 Before October 1, 2000, once applicable, the requirement of
3 the making of quarter monthly payments to the Department shall
4 continue until such taxpayer's average monthly liability to
5 the Department during the preceding 4 complete calendar
6 quarters (excluding the month of highest liability and the
7 month of lowest liability) is less than $9,000, or until such
8 taxpayer's average monthly liability to the Department as
9 computed for each calendar quarter of the 4 preceding complete
10 calendar quarter period is less than $10,000. However, if a
11 taxpayer can show the Department that a substantial change in
12 the taxpayer's business has occurred which causes the taxpayer
13 to anticipate that his average monthly tax liability for the
14 reasonably foreseeable future will fall below the $10,000
15 threshold stated above, then such taxpayer may petition the
16 Department for change in such taxpayer's reporting status. On
17 and after October 1, 2000, once applicable, the requirement of
18 the making of quarter monthly payments to the Department 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
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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 1.25% in Public Act 102-700 on sales tax holiday items had not
11 occurred. For quarter monthly payments due on or after July 1,
12 2023 and through June 30, 2024, "25% of the taxpayer's
13 liability for the same calendar month of the preceding year"
14 shall be determined as if the rate reduction to 1.25% in Public
15 Act 102-700 on sales tax holiday items had not occurred.
16 Quarter monthly payment status shall be determined under this
17 paragraph as if the rate reduction to 0% in Public Act 102-700
18 on food for human consumption that is to be consumed off the
19 premises where it is sold (other than alcoholic beverages,
20 food consisting of or infused with adult use cannabis, soft
21 drinks, and food that has been prepared for immediate
22 consumption) had not occurred. For quarter monthly payments
23 due under this paragraph on or after July 1, 2023 and through
24 June 30, 2024, "25% of the taxpayer's liability for the same
25 calendar month of the preceding year" shall be determined as
26 if the rate reduction to 0% in Public Act 102-700 had not
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1 occurred. If any such quarter monthly payment is not paid at
2 the time or in the amount required by this Section, then the
3 taxpayer shall be liable for penalties and interest on the
4 difference between the minimum amount due and the amount of
5 such 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 If any such payment provided for in this Section exceeds
14 the taxpayer's liabilities under this Act, the Retailers'
15 Occupation Tax Act, the Service Occupation Tax Act and the
16 Service Use Tax Act, as shown by an original monthly return,
17 the Department shall issue to the taxpayer a credit memorandum
18 no later than 30 days after the date of payment, which
19 memorandum may be submitted by the taxpayer to the Department
20 in payment of tax liability subsequently to be remitted by the
21 taxpayer to the Department or be assigned by the taxpayer to a
22 similar taxpayer under this Act, the Retailers' Occupation Tax
23 Act, the Service Occupation Tax Act or the Service Use Tax Act,
24 in accordance with reasonable rules and regulations to be
25 prescribed by the Department, except that if such excess
26 payment is shown on an original monthly return and is made
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1 after December 31, 1986, no credit memorandum shall be issued,
2 unless requested by the taxpayer. If no such request is made,
3 the taxpayer may credit such excess payment against tax
4 liability subsequently to be remitted by the taxpayer to the
5 Department under this Act, the Retailers' Occupation Tax Act,
6 the Service Occupation Tax Act or the Service Use Tax Act, in
7 accordance with reasonable rules and regulations prescribed by
8 the Department. If the Department subsequently determines that
9 all or any part of the credit taken was not actually due to the
10 taxpayer, the taxpayer's vendor's discount shall be reduced,
11 if necessary, to reflect the difference between the credit
12 taken and that actually due, and the taxpayer shall be liable
13 for penalties and interest on such difference.
14 If the retailer is otherwise required to file a monthly
15 return and if the retailer's average monthly tax liability to
16 the Department does not exceed $200, the Department may
17 authorize his returns to be filed on a quarter annual basis,
18 with the return for January, February, and March of a given
19 year being due by April 20 of such year; with the return for
20 April, May and June of a given year being due by July 20 of
21 such year; with the return for July, August and September of a
22 given year being due by October 20 of such year, and with the
23 return for October, November and December of a given year
24 being due by January 20 of the following year.
25 If the retailer is otherwise required to file a monthly or
26 quarterly return and if the retailer's average monthly tax
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1 liability to the Department does not exceed $50, the
2 Department may authorize his returns to be filed on an annual
3 basis, with the return for a given year being due by January 20
4 of the following year.
5 Such quarter annual and annual returns, as to form and
6 substance, shall be subject to the same requirements as
7 monthly returns.
8 Notwithstanding any other provision in this Act concerning
9 the time within which a retailer may file his return, in the
10 case of any retailer who ceases to engage in a kind of business
11 which makes him responsible for filing returns under this Act,
12 such retailer shall file a final return under this Act with the
13 Department not more than one month after discontinuing such
14 business.
15 In addition, with respect to motor vehicles, watercraft,
16 aircraft, and trailers that are required to be registered with
17 an agency of this State, except as otherwise provided in this
18 Section, every retailer selling this kind of tangible personal
19 property shall file, with the Department, upon a form to be
20 prescribed and supplied by the Department, a separate return
21 for each such item of tangible personal property which the
22 retailer sells, except that if, in the same transaction, (i) a
23 retailer of aircraft, watercraft, motor vehicles or trailers
24 transfers more than one aircraft, watercraft, motor vehicle or
25 trailer to another aircraft, watercraft, motor vehicle or
26 trailer retailer for the purpose of resale or (ii) a retailer
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1 of aircraft, watercraft, motor vehicles, or trailers transfers
2 more than one aircraft, watercraft, motor vehicle, or trailer
3 to a purchaser for use as a qualifying rolling stock as
4 provided in Section 3-55 of this Act, then that seller may
5 report the transfer of all the aircraft, watercraft, motor
6 vehicles or trailers involved in that transaction to the
7 Department on the same uniform invoice-transaction reporting
8 return form. For purposes of this Section, "watercraft" means
9 a Class 2, Class 3, or Class 4 watercraft as defined in Section
10 3-2 of the Boat Registration and Safety Act, a personal
11 watercraft, or any boat equipped with an inboard motor.
12 In addition, with respect to motor vehicles, watercraft,
13 aircraft, and trailers that are required to be registered with
14 an agency of this State, every person who is engaged in the
15 business of leasing or renting such items and who, in
16 connection with such business, sells any such item to a
17 retailer for the purpose of resale is, notwithstanding any
18 other provision of this Section to the contrary, authorized to
19 meet the return-filing requirement of this Act by reporting
20 the transfer of all the aircraft, watercraft, motor vehicles,
21 or trailers transferred for resale during a month to the
22 Department on the same uniform invoice-transaction reporting
23 return form on or before the 20th of the month following the
24 month in which the transfer takes place. Notwithstanding any
25 other provision of this Act to the contrary, all returns filed
26 under this paragraph must be filed by electronic means in the
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1 manner and form as required by the Department.
2 The transaction reporting return in the case of motor
3 vehicles or trailers that are required to be registered with
4 an agency of this State, shall be the same document as the
5 Uniform Invoice referred to in Section 5-402 of the Illinois
6 Vehicle Code and must show the name and address of the seller;
7 the name and address of the purchaser; the amount of the
8 selling price including the amount allowed by the retailer for
9 traded-in property, if any; the amount allowed by the retailer
10 for the traded-in tangible personal property, if any, to the
11 extent to which Section 2 of this Act allows an exemption for
12 the value of traded-in property; the balance payable after
13 deducting such trade-in allowance from the total selling
14 price; the amount of tax due from the retailer with respect to
15 such transaction; the amount of tax collected from the
16 purchaser by the retailer on such transaction (or satisfactory
17 evidence that such tax is not due in that particular instance,
18 if that is claimed to be the fact); the place and date of the
19 sale; a sufficient identification of the property sold; such
20 other information as is required in Section 5-402 of the
21 Illinois Vehicle Code, and such other information as the
22 Department may reasonably require.
23 The transaction reporting return in the case of watercraft
24 and aircraft must show the name and address of the seller; the
25 name and address of the purchaser; the amount of the selling
26 price including the amount allowed by the retailer for
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1 traded-in property, if any; the amount allowed by the retailer
2 for the traded-in tangible personal property, if any, to the
3 extent to which Section 2 of this Act allows an exemption for
4 the value of traded-in property; the balance payable after
5 deducting such trade-in allowance from the total selling
6 price; the amount of tax due from the retailer with respect to
7 such transaction; the amount of tax collected from the
8 purchaser by the retailer on such transaction (or satisfactory
9 evidence that such tax is not due in that particular instance,
10 if that is claimed to be the fact); the place and date of the
11 sale, a sufficient identification of the property sold, and
12 such other information as the Department may reasonably
13 require.
14 Such transaction reporting return shall be filed not later
15 than 20 days after the date of delivery of the item that is
16 being sold, but may be filed by the retailer at any time sooner
17 than that if he chooses to do so. The transaction reporting
18 return and tax remittance or proof of exemption from the tax
19 that is imposed by this Act may be transmitted to the
20 Department by way of the State agency with which, or State
21 officer with whom, the tangible personal property must be
22 titled or registered (if titling or registration is required)
23 if the Department and such agency or State officer determine
24 that this procedure will expedite the processing of
25 applications for title or registration.
26 With each such transaction reporting return, the retailer
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1 shall remit the proper amount of tax due (or shall submit
2 satisfactory evidence that the sale is not taxable if that is
3 the case), to the Department or its agents, whereupon the
4 Department shall issue, in the purchaser's name, a tax receipt
5 (or a certificate of exemption if the Department is satisfied
6 that the particular sale is tax exempt) which such purchaser
7 may submit to the agency with which, or State officer with
8 whom, he must title or register the tangible personal property
9 that is involved (if titling or registration is required) in
10 support of such purchaser's application for an Illinois
11 certificate or other evidence of title or registration to such
12 tangible personal property.
13 No retailer's failure or refusal to remit tax under this
14 Act precludes a user, who has paid the proper tax to the
15 retailer, from obtaining his certificate of title or other
16 evidence of title or registration (if titling or registration
17 is required) upon satisfying the Department that such user has
18 paid the proper tax (if tax is due) to the retailer. The
19 Department shall adopt appropriate rules to carry out the
20 mandate of this paragraph.
21 If the user who would otherwise pay tax to the retailer
22 wants the transaction reporting return filed and the payment
23 of tax or proof of exemption made to the Department before the
24 retailer is willing to take these actions and such user has not
25 paid the tax to the retailer, such user may certify to the fact
26 of such delay by the retailer, and may (upon the Department
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1 being satisfied of the truth of such certification) transmit
2 the information required by the transaction reporting return
3 and the remittance for tax or proof of exemption directly to
4 the Department and obtain his tax receipt or exemption
5 determination, in which event the transaction reporting return
6 and tax remittance (if a tax payment was required) shall be
7 credited by the Department to the proper retailer's account
8 with the Department, but without the vendor's discount
9 provided for in this Section being allowed. When the user pays
10 the tax directly to the Department, he shall pay the tax in the
11 same amount and in the same form in which it would be remitted
12 if the tax had been remitted to the Department by the retailer.
13 On and after January 1, 2025, with respect to the lease of
14 trailers, other than semitrailers as defined in Section 1-187
15 of the Illinois Vehicle Code, that are required to be
16 registered with an agency of this State and that are subject to
17 the tax on lease receipts under this Act, notwithstanding any
18 other provision of this Act to the contrary, for the purpose of
19 reporting and paying tax under this Act on those lease
20 receipts, lessors shall file returns in addition to and
21 separate from the transaction reporting return. Lessors shall
22 file those lease returns and make payment to the Department by
23 electronic means on or before the 20th day of each month
24 following the month, quarter, or year, as applicable, in which
25 lease receipts were received. All lease receipts received by
26 the lessor from the lease of those trailers during the same
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1 reporting period shall be reported and tax shall be paid on a
2 single return form to be prescribed by the Department.
3 Where a retailer collects the tax with respect to the
4 selling price of tangible personal property which he sells and
5 the purchaser thereafter returns such tangible personal
6 property and the retailer refunds the selling price thereof to
7 the purchaser, such retailer shall also refund, to the
8 purchaser, the tax so collected from the purchaser. When
9 filing his return for the period in which he refunds such tax
10 to the purchaser, the retailer may deduct the amount of the tax
11 so refunded by him to the purchaser from any other use tax
12 which such retailer may be required to pay or remit to the
13 Department, as shown by such return, if the amount of the tax
14 to be deducted was previously remitted to the Department by
15 such retailer. If the retailer has not previously remitted the
16 amount of such tax to the Department, he is entitled to no
17 deduction under this Act upon refunding such tax to the
18 purchaser.
19 Any retailer filing a return under this Section shall also
20 include (for the purpose of paying tax thereon) the total tax
21 covered by such return upon the selling price of tangible
22 personal property purchased by him at retail from a retailer,
23 but as to which the tax imposed by this Act was not collected
24 from the retailer filing such return, and such retailer shall
25 remit the amount of such tax to the Department when filing such
26 return.
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1 If experience indicates such action to be practicable, the
2 Department may prescribe and furnish a combination or joint
3 return which will enable retailers, who are required to file
4 returns hereunder and also under the Retailers' Occupation Tax
5 Act, to furnish all the return information required by both
6 Acts on the one form.
7 Where the retailer has more than one business registered
8 with the Department under separate registration under this
9 Act, such retailer may not file each return that is due as a
10 single return covering all such registered businesses, but
11 shall file separate returns for each such registered business.
12 Beginning January 1, 1990, each month the Department shall
13 pay into the State and Local Sales Tax Reform Fund, a special
14 fund in the State Treasury which is hereby created, the net
15 revenue realized for the preceding month from the 1% tax
16 imposed under this Act.
17 Beginning January 1, 1990, each month the Department shall
18 pay into the County and Mass Transit District Fund 4% of the
19 net revenue realized for the preceding month from the 6.25%
20 general rate on the selling price of tangible personal
21 property which is purchased outside Illinois at retail from a
22 retailer and which is titled or registered by an agency of this
23 State's government.
24 Beginning January 1, 1990, each month the Department shall
25 pay into the State and Local Sales Tax Reform Fund, a special
26 fund in the State Treasury, 20% of the net revenue realized for
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1 the preceding month from the 6.25% general rate on the selling
2 price of tangible personal property, other than (i) tangible
3 personal property which is purchased outside Illinois at
4 retail from a retailer and which is titled or registered by an
5 agency of this State's government and (ii) aviation fuel sold
6 on or after December 1, 2019. This exception for aviation fuel
7 only applies 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 State.
9 For aviation fuel sold on or after December 1, 2019, each
10 month the Department shall pay into the State Aviation Program
11 Fund 20% of the net revenue realized for the preceding month
12 from the 6.25% general rate on the selling price of aviation
13 fuel, less an amount estimated by the Department to be
14 required for refunds of the 20% portion of the tax on aviation
15 fuel under this Act, which amount shall be deposited into the
16 Aviation Fuel Sales Tax Refund Fund. The Department shall only
17 pay moneys into the State Aviation Program Fund and the
18 Aviation Fuels Sales Tax Refund Fund under this Act for so long
19 as the revenue use requirements of 49 U.S.C. 47107(b) and 49
20 U.S.C. 47133 are binding on the State.
21 Beginning August 1, 2000, each month the Department shall
22 pay into the State and Local Sales Tax Reform Fund 100% of the
23 net revenue realized for the preceding month from the 1.25%
24 rate on the selling price of motor fuel and gasohol. If, in any
25 month, the tax on sales tax holiday items, as defined in
26 Section 3-6, is imposed at the rate of 1.25%, then the
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1 Department shall pay 100% of the net revenue realized for that
2 month from the 1.25% rate on the selling price of sales tax
3 holiday items into the State and Local Sales Tax Reform Fund.
4 Beginning January 1, 1990, each month the Department shall
5 pay into the Local Government Tax Fund 16% of the net revenue
6 realized for the preceding month from the 6.25% general rate
7 on the selling price of tangible personal property which is
8 purchased outside Illinois at retail from a retailer and which
9 is titled or registered by an agency of this State's
10 government.
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, 2011, each month the Department shall
19 pay into the Clean Air Act Permit Fund 80% of the net revenue
20 realized for the preceding month from the 6.25% general rate
21 on the selling price of sorbents used in Illinois in the
22 process of sorbent injection as used to comply with the
23 Environmental Protection Act or the federal Clean Air Act, but
24 the total payment into the Clean Air Act Permit Fund under this
25 Act and the Retailers' Occupation Tax Act shall not exceed
26 $2,000,000 in any fiscal year.
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1 Beginning July 1, 2013, each month the Department shall
2 pay into the Underground Storage Tank Fund from the proceeds
3 collected under this Act, the Service Use Tax Act, the Service
4 Occupation Tax Act, and the Retailers' Occupation Tax Act an
5 amount equal to the average monthly deficit in the Underground
6 Storage Tank Fund during the prior year, as certified annually
7 by the Illinois Environmental Protection Agency, but the total
8 payment into the Underground Storage Tank Fund under this Act,
9 the Service Use Tax Act, the Service Occupation Tax Act, and
10 the Retailers' Occupation Tax Act shall not exceed $18,000,000
11 in any State fiscal year. As used in this paragraph, the
12 "average monthly deficit" shall be equal to the difference
13 between the average monthly claims for payment by the fund and
14 the average monthly revenues deposited into the fund,
15 excluding payments made pursuant to this paragraph.
16 Beginning July 1, 2015, of the remainder of the moneys
17 received by the Department under this Act, the Service Use Tax
18 Act, the Service Occupation Tax Act, and the Retailers'
19 Occupation Tax Act, each month the Department shall deposit
20 $500,000 into the State Crime Laboratory Fund.
21 Of the remainder of the moneys received by the Department
22 pursuant to this Act, (a) 1.75% thereof shall be paid into the
23 Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
24 and after July 1, 1989, 3.8% thereof shall be paid into the
25 Build Illinois Fund; provided, however, that if in any fiscal
26 year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
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1 may be, of the moneys received by the Department and required
2 to be paid into the Build Illinois Fund pursuant to Section 3
3 of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
4 Act, Section 9 of the Service Use Tax Act, and Section 9 of the
5 Service Occupation Tax Act, such Acts being hereinafter called
6 the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
7 may be, of moneys being hereinafter called the "Tax Act
8 Amount", and (2) the amount transferred to the Build Illinois
9 Fund from the State and Local Sales Tax Reform Fund shall be
10 less than the Annual Specified Amount (as defined in Section 3
11 of the Retailers' Occupation Tax Act), an amount equal to the
12 difference shall be immediately paid into the Build Illinois
13 Fund from other moneys received by the Department pursuant to
14 the Tax Acts; and further provided, that if on the last
15 business day of any month the sum of (1) the Tax Act Amount
16 required to be deposited into the Build Illinois Bond Account
17 in the Build Illinois Fund during such month and (2) the amount
18 transferred during such month to the Build Illinois Fund from
19 the State and Local Sales Tax Reform Fund shall have been less
20 than 1/12 of the Annual Specified Amount, an amount equal to
21 the difference shall be immediately paid into the Build
22 Illinois Fund from other moneys received by the Department
23 pursuant to the Tax Acts; and, further provided, that in no
24 event shall the payments required under the preceding proviso
25 result in aggregate payments into the Build Illinois Fund
26 pursuant to this clause (b) for any fiscal year in excess of
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1 the greater of (i) the Tax Act Amount or (ii) the Annual
2 Specified Amount for such fiscal year; and, further provided,
3 that the amounts payable into the Build Illinois Fund under
4 this clause (b) shall be payable only until such time as the
5 aggregate amount on deposit under each trust indenture
6 securing Bonds issued and outstanding pursuant to the Build
7 Illinois Bond Act is sufficient, taking into account any
8 future investment income, to fully provide, in accordance with
9 such indenture, for the defeasance of or the payment of the
10 principal of, premium, if any, and interest on the Bonds
11 secured by such indenture and on any Bonds expected to be
12 issued thereafter and all fees and costs payable with respect
13 thereto, all as certified by the Director of the Bureau of the
14 Budget (now Governor's Office of Management and Budget). If on
15 the last business day of any month in which Bonds are
16 outstanding pursuant to the Build Illinois Bond Act, the
17 aggregate of the moneys deposited in the Build Illinois Bond
18 Account in the Build Illinois Fund in such month shall be less
19 than the amount required to be transferred in such month from
20 the Build Illinois Bond Account to the Build Illinois Bond
21 Retirement and Interest Fund pursuant to Section 13 of the
22 Build Illinois Bond Act, an amount equal to such deficiency
23 shall be immediately paid from other moneys received by the
24 Department pursuant to the Tax Acts to the Build Illinois
25 Fund; provided, however, that any amounts paid to the Build
26 Illinois Fund in any fiscal year pursuant to this sentence
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1 shall be deemed to constitute payments pursuant to clause (b)
2 of the preceding sentence and shall reduce the amount
3 otherwise payable for such fiscal year pursuant to clause (b)
4 of the preceding sentence. The moneys received by the
5 Department pursuant to this Act and required to be deposited
6 into the Build Illinois Fund are subject to the pledge, claim
7 and charge set forth in Section 12 of the Build Illinois Bond
8 Act.
9 Subject to payment of amounts into the Build Illinois Fund
10 as provided in the preceding paragraph or in any amendment
11 thereto hereafter enacted, the following specified monthly
12 installment of the amount requested in the certificate of the
13 Chairman of the Metropolitan Pier and Exposition Authority
14 provided under Section 8.25f of the State Finance Act, but not
15 in excess of the sums designated as "Total Deposit", shall be
16 deposited in the aggregate from collections under Section 9 of
17 the Use Tax Act, Section 9 of the Service Use Tax Act, Section
18 9 of the Service Occupation Tax Act, and Section 3 of the
19 Retailers' Occupation Tax Act into the McCormick Place
20 Expansion Project Fund in the specified fiscal years.
21Fiscal YearTotal Deposit221993 $0231994 53,000,000241995 58,000,000251996 61,000,000261997 64,000,000 21 Fiscal Year Total Deposit 22 1993 $0 23 1994 53,000,000 24 1995 58,000,000 25 1996 61,000,000 26 1997 64,000,000
21 Fiscal Year Total Deposit
22 1993 $0
23 1994 53,000,000
24 1995 58,000,000
25 1996 61,000,000
26 1997 64,000,000
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21 Fiscal Year Total Deposit
22 1993 $0
23 1994 53,000,000
24 1995 58,000,000
25 1996 61,000,000
26 1997 64,000,000
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11998 68,000,00021999 71,000,00032000 75,000,00042001 80,000,00052002 93,000,00062003 99,000,00072004103,000,00082005108,000,00092006113,000,000102007119,000,000112008126,000,000122009132,000,000132010139,000,000142011146,000,000152012153,000,000162013161,000,000172014170,000,000182015179,000,000192016189,000,000202017199,000,000212018210,000,000222019221,000,000232020233,000,000242021300,000,000252022300,000,000262023300,000,000 1 1998 68,000,000 2 1999 71,000,000 3 2000 75,000,000 4 2001 80,000,000 5 2002 93,000,000 6 2003 99,000,000 7 2004 103,000,000 8 2005 108,000,000 9 2006 113,000,000 10 2007 119,000,000 11 2008 126,000,000 12 2009 132,000,000 13 2010 139,000,000 14 2011 146,000,000 15 2012 153,000,000 16 2013 161,000,000 17 2014 170,000,000 18 2015 179,000,000 19 2016 189,000,000 20 2017 199,000,000 21 2018 210,000,000 22 2019 221,000,000 23 2020 233,000,000 24 2021 300,000,000 25 2022 300,000,000 26 2023 300,000,000
1 1998 68,000,000
2 1999 71,000,000
3 2000 75,000,000
4 2001 80,000,000
5 2002 93,000,000
6 2003 99,000,000
7 2004 103,000,000
8 2005 108,000,000
9 2006 113,000,000
10 2007 119,000,000
11 2008 126,000,000
12 2009 132,000,000
13 2010 139,000,000
14 2011 146,000,000
15 2012 153,000,000
16 2013 161,000,000
17 2014 170,000,000
18 2015 179,000,000
19 2016 189,000,000
20 2017 199,000,000
21 2018 210,000,000
22 2019 221,000,000
23 2020 233,000,000
24 2021 300,000,000
25 2022 300,000,000
26 2023 300,000,000
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1 1998 68,000,000
2 1999 71,000,000
3 2000 75,000,000
4 2001 80,000,000
5 2002 93,000,000
6 2003 99,000,000
7 2004 103,000,000
8 2005 108,000,000
9 2006 113,000,000
10 2007 119,000,000
11 2008 126,000,000
12 2009 132,000,000
13 2010 139,000,000
14 2011 146,000,000
15 2012 153,000,000
16 2013 161,000,000
17 2014 170,000,000
18 2015 179,000,000
19 2016 189,000,000
20 2017 199,000,000
21 2018 210,000,000
22 2019 221,000,000
23 2020 233,000,000
24 2021 300,000,000
25 2022 300,000,000
26 2023 300,000,000
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12024 300,000,00022025 300,000,00032026 300,000,00042027 375,000,00052028 375,000,00062029 375,000,00072030 375,000,00082031 375,000,00092032 375,000,000102033 375,000,000 112034375,000,000122035375,000,000132036450,000,00014and 15each fiscal year 16thereafter that bonds 17are outstanding under 18Section 13.2 of the 19Metropolitan Pier and 20Exposition Authority Act, 21but not after fiscal year 2060. 1 2024 300,000,000 2 2025 300,000,000 3 2026 300,000,000 4 2027 375,000,000 5 2028 375,000,000 6 2029 375,000,000 7 2030 375,000,000 8 2031 375,000,000 9 2032 375,000,000 10 2033 375,000,000 11 2034 375,000,000 12 2035 375,000,000 13 2036 450,000,000 14 and 15 each fiscal year 16 thereafter that bonds 17 are outstanding under 18 Section 13.2 of the 19 Metropolitan Pier and 20 Exposition Authority Act, 21 but not after fiscal year 2060.
1 2024 300,000,000
2 2025 300,000,000
3 2026 300,000,000
4 2027 375,000,000
5 2028 375,000,000
6 2029 375,000,000
7 2030 375,000,000
8 2031 375,000,000
9 2032 375,000,000
10 2033 375,000,000
11 2034 375,000,000
12 2035 375,000,000
13 2036 450,000,000
14 and
15 each fiscal year
16 thereafter that bonds
17 are outstanding under
18 Section 13.2 of the
19 Metropolitan Pier and
20 Exposition Authority Act,
21 but not after fiscal year 2060.
22 Beginning July 20, 1993 and in each month of each fiscal
23 year thereafter, one-eighth of the amount requested in the
24 certificate of the Chairman of the Metropolitan Pier and
25 Exposition Authority for that fiscal year, less the amount
26 deposited into the McCormick Place Expansion Project Fund by
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1 2024 300,000,000
2 2025 300,000,000
3 2026 300,000,000
4 2027 375,000,000
5 2028 375,000,000
6 2029 375,000,000
7 2030 375,000,000
8 2031 375,000,000
9 2032 375,000,000
10 2033 375,000,000
11 2034 375,000,000
12 2035 375,000,000
13 2036 450,000,000
14 and
15 each fiscal year
16 thereafter that bonds
17 are outstanding under
18 Section 13.2 of the
19 Metropolitan Pier and
20 Exposition Authority Act,
21 but not after fiscal year 2060.
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1 the State Treasurer in the respective month under subsection
2 (g) of Section 13 of the Metropolitan Pier and Exposition
3 Authority Act, plus cumulative deficiencies in the deposits
4 required under this Section for previous months and years,
5 shall be deposited into the McCormick Place Expansion Project
6 Fund, until the full amount requested for the fiscal year, but
7 not in excess of the amount specified above as "Total
8 Deposit", has been deposited.
9 Subject to payment of amounts into the Capital Projects
10 Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
11 and the McCormick Place Expansion Project Fund pursuant to the
12 preceding paragraphs or in any amendments thereto hereafter
13 enacted, for aviation fuel sold on or after December 1, 2019,
14 the Department shall each month deposit into the Aviation Fuel
15 Sales Tax Refund Fund an amount estimated by the Department to
16 be required for refunds of the 80% portion of the tax on
17 aviation fuel under this Act. The Department shall only
18 deposit moneys into the Aviation Fuel Sales Tax Refund Fund
19 under this paragraph 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 State.
22 Subject to payment of amounts into the Build Illinois Fund
23 and the McCormick Place Expansion Project Fund pursuant to the
24 preceding paragraphs or in any amendments thereto hereafter
25 enacted, beginning July 1, 1993 and ending on September 30,
26 2013, the Department shall each month pay into the Illinois
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1 Tax Increment Fund 0.27% of 80% of the net revenue realized for
2 the preceding month from the 6.25% general rate on the selling
3 price of tangible personal property.
4 Subject to payment of amounts into the Build Illinois
5 Fund, the McCormick Place Expansion Project Fund, the Illinois
6 Tax Increment Fund, and the Energy Infrastructure Fund
7 pursuant to the preceding paragraphs or in any amendments to
8 this Section hereafter enacted, beginning on the first day of
9 the first calendar month to occur on or after August 26, 2014
10 (the effective date of Public Act 98-1098), each month, from
11 the collections made under Section 9 of the Use Tax Act,
12 Section 9 of the Service Use Tax Act, Section 9 of the Service
13 Occupation Tax Act, and Section 3 of the Retailers' Occupation
14 Tax Act, the Department shall pay into the Tax Compliance and
15 Administration Fund, to be used, subject to appropriation, to
16 fund additional auditors and compliance personnel at the
17 Department of Revenue, an amount equal to 1/12 of 5% of 80% of
18 the cash receipts collected during the preceding fiscal year
19 by the Audit Bureau of the Department under the Use Tax Act,
20 the Service Use Tax Act, the Service Occupation Tax Act, the
21 Retailers' Occupation Tax Act, and associated local occupation
22 and use taxes administered by the Department.
23 Subject to payments of amounts into the Build Illinois
24 Fund, the McCormick Place Expansion Project Fund, the Illinois
25 Tax Increment Fund, and the Tax Compliance and Administration
26 Fund as provided in this Section, beginning on July 1, 2018 the
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1 Department shall pay each month into the Downstate Public
2 Transportation Fund the moneys required to be so paid under
3 Section 2-3 of the Downstate Public Transportation Act.
4 Subject to successful execution and delivery of a
5 public-private agreement between the public agency and private
6 entity and completion of the civic build, beginning on July 1,
7 2023, of the remainder of the moneys received by the
8 Department under the Use Tax Act, the Service Use Tax Act, the
9 Service Occupation Tax Act, and this Act, the Department shall
10 deposit the following specified deposits in the aggregate from
11 collections under the Use Tax Act, the Service Use Tax Act, the
12 Service Occupation Tax Act, and the Retailers' Occupation Tax
13 Act, as required under Section 8.25g of the State Finance Act
14 for distribution consistent with the Public-Private
15 Partnership for Civic and Transit Infrastructure Project Act.
16 The moneys received by the Department pursuant to this Act and
17 required to be deposited into the Civic and Transit
18 Infrastructure Fund are subject to the pledge, claim, and
19 charge set forth in Section 25-55 of the Public-Private
20 Partnership for Civic and Transit Infrastructure Project Act.
21 As used in this paragraph, "civic build", "private entity",
22 "public-private agreement", and "public agency" have the
23 meanings provided in Section 25-10 of the Public-Private
24 Partnership for Civic and Transit Infrastructure Project Act.
25 Fiscal Year............................Total Deposit
26 2024....................................$200,000,000
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1 2025....................................$206,000,000
2 2026....................................$212,200,000
3 2027....................................$218,500,000
4 2028....................................$225,100,000
5 2029....................................$288,700,000
6 2030....................................$298,900,000
7 2031....................................$309,300,000
8 2032....................................$320,100,000
9 2033....................................$331,200,000
10 2034....................................$341,200,000
11 2035....................................$351,400,000
12 2036....................................$361,900,000
13 2037....................................$372,800,000
14 2038....................................$384,000,000
15 2039....................................$395,500,000
16 2040....................................$407,400,000
17 2041....................................$419,600,000
18 2042....................................$432,200,000
19 2043....................................$445,100,000
20 Beginning July 1, 2021 and until July 1, 2022, subject to
21 the payment of amounts into the State and Local Sales Tax
22 Reform Fund, the Build Illinois Fund, the McCormick Place
23 Expansion Project Fund, the Illinois Tax Increment Fund, and
24 the Tax 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 16% of the net revenue
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1 realized from the taxes imposed on motor fuel and gasohol.
2 Beginning July 1, 2022 and until July 1, 2023, 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 32% of the net revenue
9 realized from the taxes imposed on motor fuel and gasohol.
10 Beginning July 1, 2023 and until July 1, 2024, subject to the
11 payment of amounts into the State and Local Sales Tax Reform
12 Fund, the Build Illinois Fund, the McCormick Place Expansion
13 Project Fund, the Illinois Tax Increment Fund, and the Tax
14 Compliance and Administration Fund as provided in this
15 Section, the Department shall pay each month into the Road
16 Fund the amount estimated to represent 48% of the net revenue
17 realized from the taxes imposed on motor fuel and gasohol.
18 Beginning July 1, 2024 and until July 1, 2025, 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 64% of the net revenue
25 realized from the taxes imposed on motor fuel and gasohol.
26 Beginning on July 1, 2025, subject to the payment of amounts
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1 into the State and Local Sales Tax Reform Fund, the Build
2 Illinois Fund, the McCormick Place Expansion Project Fund, the
3 Illinois Tax Increment Fund, and the Tax Compliance and
4 Administration Fund as provided in this Section, the
5 Department shall pay each month into the Road Fund the amount
6 estimated to represent 80% of the net revenue realized from
7 the taxes imposed on motor fuel and gasohol. As used in this
8 paragraph "motor fuel" has the meaning given to that term in
9 Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the
10 meaning given to that term in Section 3-40 of this Act.
11 Of the remainder of the moneys received by the Department
12 pursuant to this Act, 75% thereof shall be paid into the State
13 Treasury and 25% shall be reserved in a special account and
14 used only for the transfer to the Common School Fund as part of
15 the monthly transfer from the General Revenue Fund in
16 accordance with Section 8a of the State Finance Act.
17 As soon as possible after the first day of each month, upon
18 certification of the Department of Revenue, the Comptroller
19 shall order transferred and the Treasurer shall transfer from
20 the General Revenue Fund to the Motor Fuel Tax Fund an amount
21 equal to 1.7% of 80% of the net revenue realized under this Act
22 for the second preceding month. Beginning April 1, 2000, this
23 transfer is no longer required and shall not be made.
24 Net revenue realized for a month shall be the revenue
25 collected by the State pursuant to this Act, less the amount
26 paid out during that month as refunds to taxpayers for
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1 overpayment of liability.
2 For greater simplicity of administration, manufacturers,
3 importers and wholesalers whose products are sold at retail in
4 Illinois by numerous retailers, and who wish to do so, may
5 assume the responsibility for accounting and paying to the
6 Department all tax accruing under this Act with respect to
7 such sales, if the retailers who are affected do not make
8 written objection to the Department to this arrangement.
9 (Source: P.A. 102-700, Article 60, Section 60-15, eff.
10 4-19-22; 102-700, Article 65, Section 65-5, eff. 4-19-22;
11 102-1019, eff. 1-1-23; 103-154, eff. 6-30-23; 103-363, eff.
12 7-28-23; 103-592, Article 75, Section 75-5, eff. 1-1-25;
13 103-592, Article 110, Section 110-5, eff. 6-7-24; 103-1055,
14 eff. 12-20-24.)
15 Section 15. The Retailers' Occupation Tax Act is amended
16 by changing Sections 2-8, 2-10, and 3 as follows:
17 (35 ILCS 120/2-8)
18 Sec. 2-8. Sales tax holiday items.
19 (a) Any tangible personal property described in this
20 subsection is a sales tax holiday item and qualifies for the
21 1.25% reduced rate of tax during the sales tax holiday period
22 for the period set forth in Section 2-10 of this Act
23 (hereinafter referred to as the Sales Tax Holiday Period). The
24 reduced rate on these items shall be administered under the
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1 provisions of subsection (b) of this Section. The following
2 items are subject to the reduced rate:
3 (1) Clothing items that each have a retail selling
4 price of less than $125.
5 "Clothing" means, unless otherwise specified in this
6 Section, all human wearing apparel suitable for general
7 use. "Clothing" does not include clothing accessories,
8 protective equipment, or sport or recreational equipment.
9 "Clothing" includes, but is not limited to: household and
10 shop aprons; athletic supporters; bathing suits and caps;
11 belts and suspenders; boots; coats and jackets; ear muffs;
12 footlets; gloves and mittens for general use; hats and
13 caps; hosiery; insoles for shoes; lab coats; neckties;
14 overshoes; pantyhose; rainwear; rubber pants; sandals;
15 scarves; shoes and shoelaces; slippers; sneakers; socks
16 and stockings; steel-toed shoes; underwear; and school
17 uniforms.
18 "Clothing accessories" means, but is not limited to:
19 briefcases; cosmetics; hair notions, including, but not
20 limited to barrettes, hair bows, and hair nets; handbags;
21 handkerchiefs; jewelry; non-prescription sunglasses;
22 umbrellas; wallets; watches; and wigs and hair pieces.
23 "Protective equipment" means, but is not limited to:
24 breathing masks; clean room apparel and equipment; ear and
25 hearing protectors; face shields; hard hats; helmets;
26 paint or dust respirators; protective gloves; safety
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1 glasses and goggles; safety belts; tool belts; and
2 welder's gloves and masks.
3 "Sport or recreational equipment" means, but is not
4 limited to: ballet and tap shoes; cleated or spiked
5 athletic shoes; gloves, including, but not limited to,
6 baseball, bowling, boxing, hockey, and golf gloves;
7 goggles; hand and elbow guards; life preservers and vests;
8 mouth guards; roller and ice skates; shin guards; shoulder
9 pads; ski boots; waders; and wetsuits and fins.
10 (2) School supplies. "School supplies" means, unless
11 otherwise specified in this Section, items used by a
12 student in a course of study. The purchase of school
13 supplies for use by persons other than students for use in
14 a course of study are not eligible for the reduced rate of
15 tax. "School supplies" do not include school art supplies;
16 school instructional materials; cameras; film and memory
17 cards; videocameras, tapes, and videotapes; computers;
18 cell phones; Personal Digital Assistants (PDAs); handheld
19 electronic schedulers; and school computer supplies.
20 "School supplies" includes, but is not limited to:
21 binders; book bags; calculators; cellophane tape;
22 blackboard chalk; compasses; composition books; crayons;
23 erasers; expandable, pocket, plastic, and manila folders;
24 glue, paste, and paste sticks; highlighters; index cards;
25 index card boxes; legal pads; lunch boxes; markers;
26 notebooks; paper, including loose leaf ruled notebook
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1 paper, copy paper, graph paper, tracing paper, manila
2 paper, colored paper, poster board, and construction
3 paper; pencils; pencil leads; pens; ink and ink refills
4 for pens; pencil boxes and other school supply boxes;
5 pencil sharpeners; protractors; rulers; scissors; and
6 writing tablets.
7 "School art supply" means an item commonly used by a
8 student in a course of study for artwork and includes only
9 the following items: clay and glazes; acrylic, tempera,
10 and oil paint; paintbrushes for artwork; sketch and
11 drawing pads; and watercolors.
12 "School instructional material" means written material
13 commonly used by a student in a course of study as a
14 reference and to learn the subject being taught and
15 includes only the following items: reference books;
16 reference maps and globes; textbooks; and workbooks.
17 "School computer supply" means an item commonly used
18 by a student in a course of study in which a computer is
19 used and applies only to the following items: flashdrives
20 and other computer data storage devices; data storage
21 media, such as diskettes and compact disks; boxes and
22 cases for disk storage; external ports or drives; computer
23 cases; computer cables; computer printers; and printer
24 cartridges, toner, and ink.
25 (b) Administration. Notwithstanding any other provision of
26 this Act, the reduced rate of tax under Section 3-10 of this
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1 Act for clothing and school supplies shall be administered by
2 the Department under the provisions of this subsection (b).
3 (1) Bundled sales. Items that qualify for the reduced
4 rate of tax that are bundled together with items that do
5 not qualify for the reduced rate of tax and that are sold
6 for one itemized price will be subject to the reduced rate
7 of tax only if the value of the items that qualify for the
8 reduced rate of tax exceeds the value of the items that do
9 not qualify for the reduced rate of tax.
10 (2) Coupons and discounts. An unreimbursed discount by
11 the seller reduces the sales price of the property so that
12 the discounted sales price determines whether the sales
13 price is within a sales tax holiday price threshold. A
14 coupon or other reduction in the sales price is treated as
15 a discount if the seller is not reimbursed for the coupon
16 or reduction amount by a third party.
17 (3) Splitting of items normally sold together.
18 Articles that are normally sold as a single unit must
19 continue to be sold in that manner. Such articles cannot
20 be priced separately and sold as individual items in order
21 to obtain the reduced rate of tax. For example, a pair of
22 shoes cannot have each shoe sold separately so that the
23 sales price of each shoe is within a sales tax holiday
24 price threshold.
25 (4) Rain checks. A rain check is a procedure that
26 allows a customer to purchase an item at a certain price at
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1 a later time because the particular item was out of stock.
2 Eligible property that customers purchase during the Sales
3 Tax Holiday Period with the use of a rain check will
4 qualify for the reduced rate of tax regardless of when the
5 rain check was issued. Issuance of a rain check during the
6 Sales Tax Holiday Period will not qualify eligible
7 property for the reduced rate of tax if the property is
8 actually purchased after the Sales Tax Holiday Period.
9 (5) Exchanges. The procedure for an exchange in
10 regards to a sales tax holiday is as follows:
11 (A) If a customer purchases an item of eligible
12 property during the Sales Tax Holiday Period, but
13 later exchanges the item for a similar eligible item,
14 even if a different size, different color, or other
15 feature, no additional tax is due even if the exchange
16 is made after the Sales Tax Holiday Period.
17 (B) If a customer purchases an item of eligible
18 property during the Sales Tax Holiday Period, but
19 after the Sales Tax Holiday Period has ended, the
20 customer returns the item and receives credit on the
21 purchase of a different item, the 6.25% general
22 merchandise sales tax rate is due on the sale of the
23 newly purchased item.
24 (C) If a customer purchases an item of eligible
25 property before the Sales Tax Holiday Period, but
26 during the Sales Tax Holiday Period the customer
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1 returns the item and receives credit on the purchase
2 of a different item of eligible property, the reduced
3 rate of tax is due on the sale of the new item if the
4 new item is purchased during the Sales Tax Holiday
5 Period.
6 (6) (Blank).
7 (7) Order date and back orders. For the purpose of a
8 sales tax holiday, eligible property qualifies for the
9 reduced rate of tax if: (i) the item is both delivered to
10 and paid for by the customer during the Sales Tax Holiday
11 Period or (ii) the customer orders and pays for the item
12 and the seller accepts the order during the Sales Tax
13 Holiday Period for immediate shipment, even if delivery is
14 made after the Sales Tax Holiday Period. The seller
15 accepts an order when the seller has taken action to fill
16 the order for immediate shipment. Actions to fill an order
17 include placement of an "in date" stamp on an order or
18 assignment of an "order number" to an order within the
19 Sales Tax Holiday Period. An order is for immediate
20 shipment when the customer does not request delayed
21 shipment. An order is for immediate shipment
22 notwithstanding that the shipment may be delayed because
23 of a backlog of orders or because stock is currently
24 unavailable to, or on back order by, the seller.
25 (8) Returns. For a 60-day period immediately after the
26 Sales Tax Holiday Period, if a customer returns an item
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1 that would qualify for the reduced rate of tax, credit for
2 or refund of sales tax shall be given only at the reduced
3 rate unless the customer provides a receipt or invoice
4 that shows tax was paid at the 6.25% general merchandise
5 rate, or the seller has sufficient documentation to show
6 that tax was paid at the 6.25% general merchandise rate on
7 the specific item. This 60-day period is set solely for
8 the purpose of designating a time period during which the
9 customer must provide documentation that shows that the
10 appropriate sales tax rate was paid on returned
11 merchandise. The 60-day period is not intended to change a
12 seller's policy on the time period during which the seller
13 will accept returns.
14 (c) The Department may implement the provisions of this
15 Section through the use of emergency rules, along with
16 permanent rules filed concurrently with such emergency rules,
17 in accordance with the provisions of Section 5-45 of the
18 Illinois Administrative Procedure Act. For purposes of the
19 Illinois Administrative Procedure Act, the adoption of rules
20 to implement the provisions of this Section shall be deemed an
21 emergency and necessary for the public interest, safety, and
22 welfare.
23 (d) As used in this Section, "sales tax holiday period"
24 means:
25 (1) from August 6, 2010 through August 15, 2010;
26 (2) from August 5, 2022 through August 14, 2022; and
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1 (3) during the first 7 days in August in 2025 and each
2 year thereafter.
3 (Source: P.A. 102-700, eff. 4-19-22.)
4 (35 ILCS 120/2-10)
5 Sec. 2-10. Rate of tax. Unless otherwise provided in this
6 Section, the tax imposed by this Act is at the rate of 6.25% of
7 gross receipts from sales, which, on and after January 1,
8 2025, includes leases, of tangible personal property made in
9 the course of business.
10 Beginning on July 1, 2000 and through December 31, 2000,
11 with respect to motor fuel, as defined in Section 1.1 of the
12 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
13 the Use Tax Act, the tax is imposed at the rate of 1.25%.
14 During the sales tax holiday period set forth in Section
15 2-8, Beginning on August 6, 2010 through August 15, 2010, and
16 beginning again on August 5, 2022 through August 14, 2022,
17 with respect to sales tax holiday items as defined in Section
18 2-8 of this Act, the tax is imposed at the rate of 1.25%.
19 Within 14 days after July 1, 2000 (the effective date of
20 Public Act 91-872), each retailer of motor fuel and gasohol
21 shall cause the following notice to be posted in a prominently
22 visible place on each retail dispensing device that is used to
23 dispense motor fuel or gasohol in the State of Illinois: "As of
24 July 1, 2000, the State of Illinois has eliminated the State's
25 share of sales tax on motor fuel and gasohol through December
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1 31, 2000. The price on this pump should reflect the
2 elimination of the tax." The notice shall be printed in bold
3 print on a sign that is no smaller than 4 inches by 8 inches.
4 The sign shall be clearly visible to customers. Any retailer
5 who fails to post or maintain a required sign through December
6 31, 2000 is guilty of a petty offense for which the fine shall
7 be $500 per day per each retail premises where a violation
8 occurs.
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 proceeds of
11 sales made on or after January 1, 1990, and before July 1,
12 2003, (ii) 80% of the proceeds of sales made on or after July
13 1, 2003 and on or before July 1, 2017, (iii) 100% of the
14 proceeds of sales made after July 1, 2017 and prior to January
15 1, 2024, (iv) 90% of the proceeds of sales made on or after
16 January 1, 2024 and on or before December 31, 2028, and (v)
17 100% of the proceeds of sales made after December 31, 2028. If,
18 at any time, however, the tax under this Act on sales of
19 gasohol, as defined in the Use Tax Act, is imposed at the rate
20 of 1.25%, then the tax imposed by this Act applies to 100% of
21 the proceeds of sales of gasohol made during that time.
22 With respect to mid-range ethanol blends, as defined in
23 Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
24 applies to (i) 80% of the proceeds of sales made on or after
25 January 1, 2024 and on or before December 31, 2028 and (ii)
26 100% of the proceeds of sales made after December 31, 2028. If,
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1 at any time, however, the tax under this Act on sales of
2 mid-range ethanol blends is imposed at the rate of 1.25%, then
3 the tax imposed by this Act applies to 100% of the proceeds of
4 sales of mid-range ethanol blends made during that time.
5 With respect to majority blended ethanol fuel, as defined
6 in the Use Tax Act, the tax imposed by this Act does not apply
7 to the proceeds of sales made on or after July 1, 2003 and on
8 or before December 31, 2028 but applies to 100% of the proceeds
9 of sales made thereafter.
10 With respect to biodiesel blends, as defined in the Use
11 Tax Act, with no less than 1% and no more than 10% biodiesel,
12 the tax imposed by this Act applies to (i) 80% of the proceeds
13 of sales made on or after July 1, 2003 and on or before
14 December 31, 2018 and (ii) 100% of the proceeds of sales made
15 after December 31, 2018 and before January 1, 2024. On and
16 after January 1, 2024 and on or before December 31, 2030, the
17 taxation of biodiesel, renewable diesel, and biodiesel blends
18 shall be as provided in Section 3-5.1 of the Use Tax Act. If,
19 at any time, however, the tax under this Act on sales of
20 biodiesel blends, as defined in the Use Tax Act, with no less
21 than 1% and no more than 10% biodiesel is imposed at the rate
22 of 1.25%, then the tax imposed by this Act applies to 100% of
23 the proceeds of sales of biodiesel blends with no less than 1%
24 and no more than 10% biodiesel made during that time.
25 With respect to biodiesel, as defined in the Use Tax Act,
26 and biodiesel blends, as defined in the Use Tax Act, with more
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1 than 10% but no more than 99% biodiesel, the tax imposed by
2 this Act does not apply to the proceeds of sales made on or
3 after July 1, 2003 and on or before December 31, 2023. On and
4 after January 1, 2024 and on or before December 31, 2030, the
5 taxation of biodiesel, renewable diesel, and biodiesel blends
6 shall be as provided in Section 3-5.1 of the Use Tax Act.
7 Until July 1, 2022 and from July 1, 2023 through December
8 31, 2025, with respect to food for human consumption that is to
9 be consumed off the premises where it is sold (other than
10 alcoholic beverages, food consisting of or infused with adult
11 use cannabis, soft drinks, and food that has been prepared for
12 immediate consumption), the tax is imposed at the rate of 1%.
13 Beginning July 1, 2022 and until July 1, 2023, with respect to
14 food for human consumption that is to be consumed off the
15 premises where it is sold (other than alcoholic beverages,
16 food consisting of or infused with adult use cannabis, soft
17 drinks, and food that has been prepared for immediate
18 consumption), the tax is imposed at the rate of 0%. On and
19 after January 1, 2026, food for human consumption that is to be
20 consumed off the premises where it is sold (other than
21 alcoholic beverages, food consisting of or infused with adult
22 use cannabis, soft drinks, candy, and food that has been
23 prepared for immediate consumption) is exempt from the tax
24 imposed by this Act.
25 With respect to prescription and nonprescription
26 medicines, drugs, medical appliances, products classified as
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1 Class III medical devices by the United States Food and Drug
2 Administration that are used for cancer treatment pursuant to
3 a prescription, as well as any accessories and components
4 related to those devices, modifications to a motor vehicle for
5 the purpose of rendering it usable by a person with a
6 disability, and insulin, blood sugar testing materials,
7 syringes, and needles used by human diabetics, the tax is
8 imposed at the rate of 1%. For the purposes of this Section,
9 until September 1, 2009: the term "soft drinks" means any
10 complete, finished, ready-to-use, non-alcoholic drink, whether
11 carbonated or not, including, but not limited to, soda water,
12 cola, fruit juice, vegetable juice, carbonated water, and all
13 other preparations commonly known as soft drinks of whatever
14 kind or description that are contained in any closed or sealed
15 bottle, can, carton, or container, regardless of size; but
16 "soft drinks" does not include coffee, tea, non-carbonated
17 water, infant formula, milk or milk products as defined in the
18 Grade A Pasteurized Milk and Milk Products Act, or drinks
19 containing 50% or more natural fruit or vegetable juice.
20 Notwithstanding any other provisions of this Act,
21 beginning September 1, 2009, "soft drinks" means non-alcoholic
22 beverages that contain natural or artificial sweeteners. "Soft
23 drinks" does not include beverages that contain milk or milk
24 products, soy, rice or similar milk substitutes, or greater
25 than 50% of vegetable or fruit juice by volume.
26 Until August 1, 2009, and notwithstanding any other
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1 provisions of this Act, "food for human consumption that is to
2 be consumed off the premises where it is sold" includes all
3 food sold through a vending machine, except soft drinks and
4 food products that are dispensed hot from a vending machine,
5 regardless of the location of the vending machine. Beginning
6 August 1, 2009, and notwithstanding any other provisions of
7 this Act, "food for human consumption that is to be consumed
8 off the premises where it is sold" includes all food sold
9 through a vending machine, except soft drinks, candy, and food
10 products that are dispensed hot from a vending machine,
11 regardless of the location of the vending machine.
12 Notwithstanding any other provisions of this Act,
13 beginning September 1, 2009, "food for human consumption that
14 is to be consumed off the premises where it is sold" does not
15 include candy. For purposes of this Section, "candy" means a
16 preparation of sugar, honey, or other natural or artificial
17 sweeteners in combination with chocolate, fruits, nuts or
18 other ingredients or flavorings in the form of bars, drops, or
19 pieces. "Candy" does not include any preparation that contains
20 flour or requires refrigeration.
21 Notwithstanding any other provisions of this Act,
22 beginning September 1, 2009, "nonprescription medicines and
23 drugs" does not include grooming and hygiene products. For
24 purposes of this Section, "grooming and hygiene products"
25 includes, but is not limited to, soaps and cleaning solutions,
26 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
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1 lotions and screens, unless those products are available by
2 prescription only, regardless of whether the products meet the
3 definition of "over-the-counter-drugs". For the purposes of
4 this paragraph, "over-the-counter-drug" means a drug for human
5 use that contains a label that identifies the product as a drug
6 as required by 21 CFR 201.66. The "over-the-counter-drug"
7 label includes:
8 (A) a "Drug Facts" panel; or
9 (B) a statement of the "active ingredient(s)" with a
10 list of those ingredients contained in the compound,
11 substance or preparation.
12 Beginning on January 1, 2014 (the effective date of Public
13 Act 98-122), "prescription and nonprescription medicines and
14 drugs" includes medical cannabis purchased from a registered
15 dispensing organization under the Compassionate Use of Medical
16 Cannabis Program Act.
17 As used in this Section, "adult use cannabis" means
18 cannabis subject to tax under the Cannabis Cultivation
19 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
20 and does not include cannabis subject to tax under the
21 Compassionate Use of Medical Cannabis Program Act.
22 (Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
23 Section 20-20, eff. 4-19-22; 102-700, Article 60, Section
24 60-30, eff. 4-19-22; 102-700, Article 65, Section 65-10, eff.
25 4-19-22; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23; 103-592,
26 eff. 1-1-25; 103-781, eff. 8-5-24; revised 11-26-24.)
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1 (35 ILCS 120/3)
2 Sec. 3. Except as provided in this Section, on or before
3 the twentieth day of each calendar month, every person engaged
4 in the business of selling, which, on and after January 1,
5 2025, includes leasing, tangible personal property at retail
6 in this State during the preceding calendar month shall file a
7 return with the Department, stating:
8 1. The name of the seller;
9 2. His residence address and the address of his
10 principal place of business and the address of the
11 principal place of business (if that is a different
12 address) from which he engages in the business of selling
13 tangible personal property at retail in this State;
14 3. Total amount of receipts received by him during the
15 preceding calendar month or quarter, as the case may be,
16 from sales of tangible personal property, and from
17 services furnished, by him during such preceding calendar
18 month or quarter;
19 4. Total amount received by him during the preceding
20 calendar month or quarter on charge and time sales of
21 tangible personal property, and from services furnished,
22 by him prior to the month or quarter for which the return
23 is filed;
24 5. Deductions allowed by law;
25 6. Gross receipts which were received by him during
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1 the preceding calendar month or quarter and upon the basis
2 of which the tax is imposed, including gross receipts on
3 food for human consumption that is to be consumed off the
4 premises where it is sold (other than alcoholic beverages,
5 food consisting of or infused with adult use cannabis,
6 soft drinks, and food that has been prepared for immediate
7 consumption) which were received during the preceding
8 calendar month or quarter and upon which tax would have
9 been due but for the 0% rate imposed under Public Act
10 102-700;
11 7. The amount of credit provided in Section 2d of this
12 Act;
13 8. The amount of tax due, including the amount of tax
14 that would have been due on food for human consumption
15 that is to be consumed off the premises where it is sold
16 (other than alcoholic beverages, food consisting of or
17 infused with adult use cannabis, soft drinks, and food
18 that has been prepared for immediate consumption) but for
19 the 0% rate imposed under Public Act 102-700;
20 9. The signature of the taxpayer; and
21 10. Such other reasonable information as the
22 Department may require.
23 In the case of leases, except as otherwise provided in
24 this Act, the lessor must remit for each tax return period only
25 the tax applicable to that part of the selling price actually
26 received during such tax return period.
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1 On and after January 1, 2018, except for returns required
2 to be filed prior to January 1, 2023 for motor vehicles,
3 watercraft, aircraft, and trailers that are required to be
4 registered with an agency of this State, with respect to
5 retailers whose annual gross receipts average $20,000 or more,
6 all returns required to be filed pursuant to this Act shall be
7 filed electronically. On and after January 1, 2023, with
8 respect to retailers whose annual gross receipts average
9 $20,000 or more, all returns required to be filed pursuant to
10 this Act, including, but not limited to, returns for motor
11 vehicles, watercraft, aircraft, and trailers that are required
12 to be registered with an agency of this State, shall be filed
13 electronically. Retailers who demonstrate that they do not
14 have access to the Internet or demonstrate hardship in filing
15 electronically may petition the Department to waive the
16 electronic filing requirement.
17 If a taxpayer fails to sign a return within 30 days after
18 the proper notice and demand for signature by the Department,
19 the return shall be considered valid and any amount shown to be
20 due on the return shall be deemed assessed.
21 Each return shall be accompanied by the statement of
22 prepaid tax issued pursuant to Section 2e for which credit is
23 claimed.
24 Prior to October 1, 2003 and on and after September 1,
25 2004, a retailer may accept a Manufacturer's Purchase Credit
26 certification from a purchaser in satisfaction of Use Tax as
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1 provided in Section 3-85 of the Use Tax Act if the purchaser
2 provides the appropriate documentation as required by Section
3 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
4 certification, accepted by a retailer prior to October 1, 2003
5 and on and after September 1, 2004 as provided in Section 3-85
6 of the Use Tax Act, may be used by that retailer to satisfy
7 Retailers' Occupation Tax liability in the amount claimed in
8 the certification, not to exceed 6.25% of the receipts subject
9 to tax from a qualifying purchase. A Manufacturer's Purchase
10 Credit reported on any original or amended return filed under
11 this Act after October 20, 2003 for reporting periods prior to
12 September 1, 2004 shall be disallowed. Manufacturer's Purchase
13 Credit reported on annual returns due on or after January 1,
14 2005 will be disallowed for periods prior to September 1,
15 2004. No Manufacturer's Purchase Credit may be used after
16 September 30, 2003 through August 31, 2004 to satisfy any tax
17 liability imposed under this Act, including any audit
18 liability.
19 Beginning on July 1, 2023 and through December 31, 2032, a
20 retailer may accept a Sustainable Aviation Fuel Purchase
21 Credit certification from an air common carrier-purchaser in
22 satisfaction of Use Tax on aviation fuel as provided in
23 Section 3-87 of the Use Tax Act if the purchaser provides the
24 appropriate documentation as required by Section 3-87 of the
25 Use Tax Act. A Sustainable Aviation Fuel Purchase Credit
26 certification accepted by a retailer in accordance with this
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1 paragraph may be used by that retailer to satisfy Retailers'
2 Occupation Tax liability (but not in satisfaction of penalty
3 or interest) in the amount claimed in the certification, not
4 to exceed 6.25% of the receipts subject to tax from a sale of
5 aviation fuel. In addition, for a sale of aviation fuel to
6 qualify to earn the Sustainable Aviation Fuel Purchase Credit,
7 retailers must retain in their books and records a
8 certification from the producer of the aviation fuel that the
9 aviation fuel sold by the retailer and for which a sustainable
10 aviation fuel purchase credit was earned meets the definition
11 of sustainable aviation fuel under Section 3-87 of the Use Tax
12 Act. The documentation must include detail sufficient for the
13 Department to determine the number of gallons of sustainable
14 aviation fuel sold.
15 The Department may require returns to be filed on a
16 quarterly basis. If so required, a return for each calendar
17 quarter shall be filed on or before the twentieth day of the
18 calendar month following the end of such calendar quarter. The
19 taxpayer shall also file a return with the Department for each
20 of the first 2 months of each calendar quarter, on or before
21 the twentieth day of the following calendar month, stating:
22 1. The name of the seller;
23 2. The address of the principal place of business from
24 which he engages in the business of selling tangible
25 personal property at retail in this State;
26 3. The total amount of taxable receipts received by
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1 him during the preceding calendar month from sales of
2 tangible personal property by him during such preceding
3 calendar month, including receipts from charge and time
4 sales, but less all deductions allowed by law;
5 4. The amount of credit provided in Section 2d of this
6 Act;
7 5. The amount of tax due; and
8 6. Such other reasonable information as the Department
9 may require.
10 Every person engaged in the business of selling aviation
11 fuel at retail in this State during the preceding calendar
12 month shall, instead of reporting and paying tax as otherwise
13 required by this Section, report and pay such tax on a separate
14 aviation fuel tax return. The requirements related to the
15 return shall be as otherwise provided in this Section.
16 Notwithstanding any other provisions of this Act to the
17 contrary, retailers selling aviation fuel shall file all
18 aviation fuel tax returns and shall make all aviation fuel tax
19 payments by electronic means in the manner and form required
20 by the Department. For purposes of this Section, "aviation
21 fuel" means jet fuel and aviation gasoline.
22 Beginning on October 1, 2003, any person who is not a
23 licensed distributor, importing distributor, or manufacturer,
24 as defined in the Liquor Control Act of 1934, but is engaged in
25 the business of selling, at retail, alcoholic liquor shall
26 file a statement with the Department of Revenue, in a format
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1 and at a time prescribed by the Department, showing the total
2 amount paid for alcoholic liquor purchased during the
3 preceding month and such other information as is reasonably
4 required by the Department. The Department may adopt rules to
5 require that this statement be filed in an electronic or
6 telephonic format. Such rules may provide for exceptions from
7 the filing requirements of this paragraph. For the purposes of
8 this paragraph, the term "alcoholic liquor" shall have the
9 meaning prescribed in the Liquor Control Act of 1934.
10 Beginning on October 1, 2003, every distributor, importing
11 distributor, and manufacturer of alcoholic liquor as defined
12 in the Liquor Control Act of 1934, shall file a statement with
13 the Department of Revenue, no later than the 10th day of the
14 month for the preceding month during which transactions
15 occurred, by electronic means, showing the total amount of
16 gross receipts from the sale of alcoholic liquor sold or
17 distributed during the preceding month to purchasers;
18 identifying the purchaser to whom it was sold or distributed;
19 the purchaser's tax registration number; and such other
20 information reasonably required by the Department. A
21 distributor, importing distributor, or manufacturer of
22 alcoholic liquor must personally deliver, mail, or provide by
23 electronic means to each retailer listed on the monthly
24 statement a report containing a cumulative total of that
25 distributor's, importing distributor's, or manufacturer's
26 total sales of alcoholic liquor to that retailer no later than
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1 the 10th day of the month for the preceding month during which
2 the transaction occurred. The distributor, importing
3 distributor, or manufacturer shall notify the retailer as to
4 the method by which the distributor, importing distributor, or
5 manufacturer will provide the sales information. If the
6 retailer is unable to receive the sales information by
7 electronic means, the distributor, importing distributor, or
8 manufacturer shall furnish the sales information by personal
9 delivery or by mail. For purposes of this paragraph, the term
10 "electronic means" includes, but is not limited to, the use of
11 a secure Internet website, e-mail, or facsimile.
12 If a total amount of less than $1 is payable, refundable or
13 creditable, such amount shall be disregarded if it is less
14 than 50 cents and shall be increased to $1 if it is 50 cents or
15 more.
16 Notwithstanding any other provision of this Act to the
17 contrary, retailers subject to tax on cannabis shall file all
18 cannabis tax returns and shall make all cannabis tax payments
19 by electronic means in the manner and form required by the
20 Department.
21 Beginning October 1, 1993, a taxpayer who has an average
22 monthly tax liability of $150,000 or more shall make all
23 payments required by rules of the Department by electronic
24 funds transfer. Beginning October 1, 1994, a taxpayer who has
25 an average monthly tax liability of $100,000 or more shall
26 make all payments required by rules of the Department by
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1 electronic funds transfer. Beginning October 1, 1995, a
2 taxpayer who has an average monthly tax liability of $50,000
3 or more shall make all payments required by rules of the
4 Department by electronic funds transfer. Beginning October 1,
5 2000, a taxpayer who has an annual tax liability of $200,000 or
6 more shall make all payments required by rules of the
7 Department by electronic funds transfer. The term "annual tax
8 liability" shall be the sum of the taxpayer's liabilities
9 under this Act, and under all other State and local occupation
10 and use tax laws administered by the Department, for the
11 immediately preceding calendar year. The term "average monthly
12 tax liability" shall be the sum of the taxpayer's liabilities
13 under this Act, and under all other State and local occupation
14 and use tax laws administered by the Department, for the
15 immediately preceding calendar year divided by 12. Beginning
16 on October 1, 2002, a taxpayer who has a tax liability in the
17 amount set forth in subsection (b) of Section 2505-210 of the
18 Department of Revenue Law shall make all payments required by
19 rules of the Department by electronic funds transfer.
20 Before August 1 of each year beginning in 1993, the
21 Department shall notify all taxpayers required to make
22 payments by electronic funds transfer. All taxpayers required
23 to make payments by electronic funds transfer shall make those
24 payments for a minimum of one year beginning on October 1.
25 Any taxpayer not required to make payments by electronic
26 funds transfer may make payments by electronic funds transfer
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1 with the permission of the Department.
2 All taxpayers required to make payment by electronic funds
3 transfer and any taxpayers authorized to voluntarily make
4 payments by electronic funds transfer shall make those
5 payments in the manner authorized by the Department.
6 The Department shall adopt such rules as are necessary to
7 effectuate a program of electronic funds transfer and the
8 requirements of this Section.
9 Any amount which is required to be shown or reported on any
10 return or other document under this Act shall, if such amount
11 is not a whole-dollar amount, be increased to the nearest
12 whole-dollar amount in any case where the fractional part of a
13 dollar is 50 cents or more, and decreased to the nearest
14 whole-dollar amount where the fractional part of a dollar is
15 less than 50 cents.
16 If the retailer is otherwise required to file a monthly
17 return and if the retailer's average monthly tax liability to
18 the Department does not exceed $200, the Department may
19 authorize his returns to be filed on a quarter annual basis,
20 with the return for January, February, and March of a given
21 year being due by April 20 of such year; with the return for
22 April, May, and June of a given year being due by July 20 of
23 such year; with the return for July, August, and September of a
24 given year being due by October 20 of such year, and with the
25 return for October, November, and December of a given year
26 being due by January 20 of the following year.
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1 If the retailer is otherwise required to file a monthly or
2 quarterly return and if the retailer's average monthly tax
3 liability with 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 retailer may file his return, in the
12 case of any retailer who ceases to engage in a kind of business
13 which makes him responsible for filing returns under this Act,
14 such retailer shall file a final return under this Act with the
15 Department not more than one month after discontinuing such
16 business.
17 Where the same person has more than one business
18 registered with the Department under separate registrations
19 under this Act, such person may not file each return that is
20 due as a single return covering all such registered
21 businesses, but shall file separate returns for each such
22 registered business.
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, except as otherwise provided in this
26 Section, every retailer selling this kind of tangible personal
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1 property shall file, with the Department, upon a form to be
2 prescribed and supplied by the Department, a separate return
3 for each such item of tangible personal property which the
4 retailer sells, except that if, in the same transaction, (i) a
5 retailer of aircraft, watercraft, motor vehicles, or trailers
6 transfers more than one aircraft, watercraft, motor vehicle,
7 or trailer to another aircraft, watercraft, motor vehicle
8 retailer, or trailer retailer for the purpose of resale or
9 (ii) a retailer of aircraft, watercraft, motor vehicles, or
10 trailers transfers more than one aircraft, watercraft, motor
11 vehicle, or trailer to a purchaser for use as a qualifying
12 rolling stock as provided in Section 2-5 of this Act, then that
13 seller may report the transfer of all aircraft, watercraft,
14 motor vehicles, or trailers involved in that transaction to
15 the Department on the same uniform invoice-transaction
16 reporting return form. For purposes of this Section,
17 "watercraft" means a Class 2, Class 3, or Class 4 watercraft as
18 defined in Section 3-2 of the Boat Registration and Safety
19 Act, a personal watercraft, or any boat equipped with an
20 inboard motor.
21 In addition, with respect to motor vehicles, watercraft,
22 aircraft, and trailers that are required to be registered with
23 an agency of this State, every person who is engaged in the
24 business of leasing or renting such items and who, in
25 connection with such business, sells any such item to a
26 retailer for the purpose of resale is, notwithstanding any
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1 other provision of this Section to the contrary, authorized to
2 meet the return-filing requirement of this Act by reporting
3 the transfer of all the aircraft, watercraft, motor vehicles,
4 or trailers transferred for resale during a month to the
5 Department on the same uniform invoice-transaction reporting
6 return form on or before the 20th of the month following the
7 month in which the transfer takes place. Notwithstanding any
8 other provision of this Act to the contrary, all returns filed
9 under this paragraph must be filed by electronic means in the
10 manner and form as required by the Department.
11 Any retailer who sells only motor vehicles, watercraft,
12 aircraft, or trailers that are required to be registered with
13 an agency of this State, so that all retailers' occupation tax
14 liability is required to be reported, and is reported, on such
15 transaction reporting returns and who is not otherwise
16 required to file monthly or quarterly returns, need not file
17 monthly or quarterly returns. However, those retailers shall
18 be required to file returns on an annual basis.
19 The transaction reporting return, in the case of motor
20 vehicles or trailers that are required to be registered with
21 an agency of this State, shall be the same document as the
22 Uniform Invoice referred to in Section 5-402 of the Illinois
23 Vehicle Code and must show the name and address of the seller;
24 the name and address of the purchaser; the amount of the
25 selling 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; such
11 other information as is required in Section 5-402 of the
12 Illinois Vehicle Code, and such other information as the
13 Department may reasonably require.
14 The transaction reporting return in the case of watercraft
15 or aircraft must show the name and address of the seller; the
16 name and address of the purchaser; the amount of the selling
17 price including the amount allowed by the retailer for
18 traded-in property, if any; the amount allowed by the retailer
19 for the traded-in tangible personal property, if any, to the
20 extent to which Section 1 of this Act allows an exemption for
21 the value of traded-in property; the balance payable after
22 deducting such trade-in allowance from the total selling
23 price; the amount of tax due from the retailer with respect to
24 such transaction; the amount of tax collected from the
25 purchaser by the retailer on such transaction (or satisfactory
26 evidence that such tax is not due in that particular instance,
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1 if that is claimed to be the fact); the place and date of the
2 sale, a sufficient identification of the property sold, and
3 such other information as the Department may reasonably
4 require.
5 Such transaction reporting return shall be filed not later
6 than 20 days after the day of delivery of the item that is
7 being sold, but may be filed by the retailer at any time sooner
8 than that if he chooses to do so. The transaction reporting
9 return and tax remittance or proof of exemption from the
10 Illinois use tax may be transmitted to the Department by way of
11 the State agency with which, or State officer with whom the
12 tangible personal property must be titled or registered (if
13 titling or registration is required) if the Department and
14 such agency or State officer determine that this procedure
15 will expedite the processing of applications for title or
16 registration.
17 With each such transaction reporting return, the retailer
18 shall remit the proper amount of tax due (or shall submit
19 satisfactory evidence that the sale is not taxable if that is
20 the case), to the Department or its agents, whereupon the
21 Department shall issue, in the purchaser's name, a use tax
22 receipt (or a certificate of exemption if the Department is
23 satisfied that the particular sale is tax exempt) which such
24 purchaser may submit to the agency with which, or State
25 officer with whom, he must title or register the tangible
26 personal property that is involved (if titling or registration
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1 is required) in support of such purchaser's application for an
2 Illinois certificate or other evidence of title or
3 registration to such tangible personal property.
4 No retailer's failure or refusal to remit tax under this
5 Act precludes a user, who has paid the proper tax to the
6 retailer, from obtaining his certificate of title or other
7 evidence of title or registration (if titling or registration
8 is required) upon satisfying the Department that such user has
9 paid the proper tax (if tax is due) to the retailer. The
10 Department shall adopt appropriate rules to carry out the
11 mandate of this paragraph.
12 If the user who would otherwise pay tax to the retailer
13 wants the transaction reporting return filed and the payment
14 of the tax or proof of exemption made to the Department before
15 the retailer is willing to take these actions and such user has
16 not paid the tax to the retailer, such user may certify to the
17 fact of such delay by the retailer and may (upon the Department
18 being satisfied of the truth of such certification) transmit
19 the information required by the transaction reporting return
20 and the remittance for tax or proof of exemption directly to
21 the Department and obtain his tax receipt or exemption
22 determination, in which event the transaction reporting return
23 and tax remittance (if a tax payment was required) shall be
24 credited by the Department to the proper retailer's account
25 with the Department, but without the vendor's discount
26 provided for in this Section being allowed. When the user pays
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1 the tax directly to the Department, he shall pay the tax in the
2 same amount and in the same form in which it would be remitted
3 if the tax had been remitted to the Department by the retailer.
4 On and after January 1, 2025, with respect to the lease of
5 trailers, other than semitrailers as defined in Section 1-187
6 of the Illinois Vehicle Code, that are required to be
7 registered with an agency of this State and that are subject to
8 the tax on lease receipts under this Act, notwithstanding any
9 other provision of this Act to the contrary, for the purpose of
10 reporting and paying tax under this Act on those lease
11 receipts, lessors shall file returns in addition to and
12 separate from the transaction reporting return. Lessors shall
13 file those lease returns and make payment to the Department by
14 electronic means on or before the 20th day of each month
15 following the month, quarter, or year, as applicable, in which
16 lease receipts were received. All lease receipts received by
17 the lessor from the lease of those trailers during the same
18 reporting period shall be reported and tax shall be paid on a
19 single return form to be prescribed by the Department.
20 Refunds made by the seller during the preceding return
21 period to purchasers, on account of tangible personal property
22 returned to the seller, shall be allowed as a deduction under
23 subdivision 5 of his monthly or quarterly return, as the case
24 may be, in case the seller had theretofore included the
25 receipts from the sale of such tangible personal property in a
26 return filed by him and had paid the tax imposed by this Act
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1 with respect to such receipts.
2 Where the seller is a corporation, the return filed on
3 behalf of such corporation shall be signed by the president,
4 vice-president, secretary, or treasurer or by the properly
5 accredited agent of such corporation.
6 Where the seller is a limited liability company, the
7 return filed on behalf of the limited liability company shall
8 be signed by a manager, member, or properly accredited agent
9 of the limited liability company.
10 Except as provided in this Section, the retailer filing
11 the return under this Section shall, at the time of filing such
12 return, pay to the Department the amount of tax imposed by this
13 Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
14 on and after January 1, 1990, or $5 per calendar year,
15 whichever is greater, which is allowed to reimburse the
16 retailer for the expenses incurred in keeping records,
17 preparing and filing returns, remitting the tax and supplying
18 data to the Department on request. On and after January 1,
19 2021, a certified service provider, as defined in the Leveling
20 the Playing Field for Illinois Retail Act, filing the return
21 under this Section on behalf of a remote retailer shall, at the
22 time of such return, pay to the Department the amount of tax
23 imposed by this Act less a discount of 1.75%. A remote retailer
24 using a certified service provider to file a return on its
25 behalf, as provided in the Leveling the Playing Field for
26 Illinois Retail Act, is not eligible for the discount.
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1 Beginning with returns due on or after January 1, 2025, the
2 vendor's discount allowed in this Section, the Service
3 Occupation Tax Act, the Use Tax Act, and the Service Use Tax
4 Act, including any local tax administered by the Department
5 and reported on the same return, shall not exceed $1,000 per
6 month in the aggregate for returns other than transaction
7 returns filed during the month. When determining the discount
8 allowed under this Section, retailers shall include the amount
9 of tax that would have been due at the 1% rate but for the 0%
10 rate imposed under Public Act 102-700. When determining the
11 discount allowed under this Section, retailers shall include
12 the amount of tax that would have been due at the 6.25% rate
13 but for the 1.25% rate imposed on sales tax holiday items under
14 Public Act 102-700 and during the sales tax period set forth in
15 Section 3-6. The discount under this Section is not allowed
16 for the 1.25% portion of taxes paid on aviation fuel that is
17 subject to the revenue use requirements of 49 U.S.C. 47107(b)
18 and 49 U.S.C. 47133. Any prepayment made pursuant to Section
19 2d of this Act shall be included in the amount on which such
20 discount is computed. In the case of retailers who report and
21 pay the tax on a transaction by transaction basis, as provided
22 in this Section, such discount shall be taken with each such
23 tax remittance instead of when such retailer files his
24 periodic return, but, beginning with returns due on or after
25 January 1, 2025, the vendor's discount allowed under this
26 Section and the Use Tax Act, including any local tax
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1 administered by the Department and reported on the same
2 transaction return, shall not exceed $1,000 per month for all
3 transaction returns filed during the month. The discount
4 allowed under this Section is allowed only for returns that
5 are filed in the manner required by this Act. The Department
6 may disallow the discount for retailers whose certificate of
7 registration is revoked at the time the return is filed, but
8 only if the Department's decision to revoke the certificate of
9 registration has become final.
10 Before October 1, 2000, if the taxpayer's average monthly
11 tax liability to the Department under this Act, the Use Tax
12 Act, the Service Occupation Tax Act, and the Service Use Tax
13 Act, excluding any liability for prepaid sales tax to be
14 remitted in accordance with Section 2d of this Act, was
15 $10,000 or more during the preceding 4 complete calendar
16 quarters, he shall file a return with the Department each
17 month by the 20th day of the month next following the month
18 during which such tax liability is incurred and shall make
19 payments to the Department on or before the 7th, 15th, 22nd and
20 last day of the month during which such liability is incurred.
21 On and after October 1, 2000, if the taxpayer's average
22 monthly tax liability to the Department under this Act, the
23 Use Tax Act, the Service Occupation Tax Act, and the Service
24 Use Tax Act, excluding any liability for prepaid sales tax to
25 be remitted in accordance with Section 2d of this Act, was
26 $20,000 or more during the preceding 4 complete calendar
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1 quarters, he shall file a return with the Department each
2 month by the 20th day of the month next following the month
3 during which such tax liability is incurred and shall make
4 payment to the Department on or before the 7th, 15th, 22nd and
5 last day of the month during which such liability is incurred.
6 If the month during which such tax liability is incurred began
7 prior to January 1, 1985, each payment shall be in an amount
8 equal to 1/4 of the taxpayer's actual liability for the month
9 or an amount set by the Department not to exceed 1/4 of the
10 average monthly liability of the taxpayer to the Department
11 for the preceding 4 complete calendar quarters (excluding the
12 month of highest liability and the month of lowest liability
13 in such 4 quarter period). If the month during which such tax
14 liability is incurred begins on or after January 1, 1985 and
15 prior to January 1, 1987, each payment shall be in an amount
16 equal to 22.5% of the taxpayer's actual liability for the
17 month or 27.5% of the taxpayer's liability for the same
18 calendar month of the preceding year. If the month during
19 which such tax liability is incurred begins on or after
20 January 1, 1987 and prior to January 1, 1988, each payment
21 shall be in an amount equal to 22.5% of the taxpayer's actual
22 liability for the month or 26.25% of the taxpayer's liability
23 for the same calendar month of the preceding year. If the month
24 during which such tax liability is incurred begins on or after
25 January 1, 1988, and prior to January 1, 1989, or begins on or
26 after January 1, 1996, each payment shall be in an amount equal
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1 to 22.5% of the taxpayer's actual liability for the month or
2 25% of the taxpayer's liability for the same calendar month of
3 the preceding year. If the month during which such tax
4 liability is incurred begins on or after January 1, 1989, and
5 prior to January 1, 1996, each payment shall be in an amount
6 equal to 22.5% of the taxpayer's actual liability for the
7 month or 25% of the taxpayer's liability for the same calendar
8 month of the preceding year or 100% of the taxpayer's actual
9 liability for the quarter monthly reporting period. The amount
10 of such quarter monthly payments shall be credited against the
11 final tax liability of the taxpayer's return for that month.
12 Before October 1, 2000, once applicable, the requirement of
13 the making of quarter monthly payments to the Department by
14 taxpayers having an average monthly tax liability of $10,000
15 or more as determined in the manner provided above shall
16 continue until such taxpayer's average monthly liability to
17 the Department during the preceding 4 complete calendar
18 quarters (excluding the month of highest liability and the
19 month of lowest liability) is less than $9,000, or until such
20 taxpayer's average monthly liability to the Department as
21 computed for each calendar quarter of the 4 preceding complete
22 calendar quarter period is less than $10,000. However, if a
23 taxpayer can show the Department that a substantial change in
24 the taxpayer's business has occurred which causes the taxpayer
25 to anticipate that his average monthly tax liability for the
26 reasonably foreseeable future will fall below the $10,000
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1 threshold stated above, then such taxpayer may petition the
2 Department for a change in such taxpayer's reporting status.
3 On and after October 1, 2000, once applicable, the requirement
4 of the making of quarter monthly payments to the Department by
5 taxpayers having an average monthly tax liability of $20,000
6 or more as determined in the manner provided above 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 0% in Public Act 102-700 on food for human consumption that is
25 to be consumed off the premises where it is sold (other than
26 alcoholic beverages, food consisting of or infused with adult
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1 use cannabis, soft drinks, and food that has been prepared for
2 immediate consumption) had not occurred. For quarter monthly
3 payments due under this paragraph on or after July 1, 2023 and
4 through June 30, 2024, "25% of the taxpayer's liability for
5 the same calendar month of the preceding year" shall be
6 determined as if the rate reduction to 0% in Public Act 102-700
7 had not occurred. Quarter monthly payment status shall be
8 determined under this paragraph as if the rate reduction to
9 1.25% in Public Act 102-700 on sales tax holiday items had not
10 occurred. For quarter monthly payments due on or after July 1,
11 2023 and through June 30, 2024, "25% of the taxpayer's
12 liability for the same calendar month of the preceding year"
13 shall be determined as if the rate reduction to 1.25% in Public
14 Act 102-700 on sales tax holiday items had not occurred. If any
15 such quarter monthly payment is not paid at the time or in the
16 amount required by this Section, then the taxpayer shall be
17 liable for penalties and interest on the difference between
18 the minimum amount due as a payment and the amount of such
19 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 The provisions of this paragraph apply before October 1,
2 2001. Without regard to whether a taxpayer is required to make
3 quarter monthly payments as specified above, any taxpayer who
4 is required by Section 2d of this Act to collect and remit
5 prepaid taxes and has collected prepaid taxes which average in
6 excess of $25,000 per month during the preceding 2 complete
7 calendar quarters, shall file a return with the Department as
8 required by Section 2f and shall make payments to the
9 Department on or before the 7th, 15th, 22nd and last day of the
10 month during which such liability is incurred. If the month
11 during which such tax liability is incurred began prior to
12 September 1, 1985 (the effective date of Public Act 84-221),
13 each payment shall be in an amount not less than 22.5% of the
14 taxpayer's actual liability under Section 2d. If the month
15 during which such tax liability is incurred begins on or after
16 January 1, 1986, each payment shall be in an amount equal to
17 22.5% of the taxpayer's actual liability for the month or
18 27.5% of the taxpayer's liability for the same calendar month
19 of the preceding calendar year. If the month during which such
20 tax liability is incurred begins on or after January 1, 1987,
21 each payment shall be in an amount equal to 22.5% of the
22 taxpayer's actual liability for the month or 26.25% of the
23 taxpayer's liability for the same calendar month of the
24 preceding year. The amount of such quarter monthly payments
25 shall be credited against the final tax liability of the
26 taxpayer's return for that month filed under this Section or
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1 Section 2f, as the case may be. Once applicable, the
2 requirement of the making of quarter monthly payments to the
3 Department pursuant to this paragraph shall continue until
4 such taxpayer's average monthly prepaid tax collections during
5 the preceding 2 complete calendar quarters is $25,000 or less.
6 If any such quarter monthly payment is not paid at the time or
7 in the amount required, the taxpayer shall be liable for
8 penalties and interest on such difference, except insofar as
9 the taxpayer has previously made payments for that month in
10 excess of the minimum payments previously due.
11 The provisions of this paragraph apply on and after
12 October 1, 2001. Without regard to whether a taxpayer is
13 required to make quarter monthly payments as specified above,
14 any taxpayer who is required by Section 2d of this Act to
15 collect and remit prepaid taxes and has collected prepaid
16 taxes that average in excess of $20,000 per month during the
17 preceding 4 complete calendar quarters shall file a return
18 with the Department as required by Section 2f and shall make
19 payments to the Department on or before the 7th, 15th, 22nd,
20 and last day of the month during which the liability is
21 incurred. Each payment shall be in an amount equal to 22.5% of
22 the taxpayer's actual liability for the month or 25% of the
23 taxpayer's liability for the same calendar month of the
24 preceding year. The amount of the quarter monthly payments
25 shall be credited against the final tax liability of the
26 taxpayer's return for that month filed under this Section or
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1 Section 2f, as the case may be. Once applicable, the
2 requirement of the making of quarter monthly payments to the
3 Department pursuant to this paragraph shall continue until the
4 taxpayer's average monthly prepaid tax collections during the
5 preceding 4 complete calendar quarters (excluding the month of
6 highest liability and the month of lowest liability) is less
7 than $19,000 or until such taxpayer's average monthly
8 liability to the Department as computed for each calendar
9 quarter of the 4 preceding complete calendar quarters is less
10 than $20,000. If any such quarter monthly payment is not paid
11 at the time or in the amount required, the taxpayer shall be
12 liable for penalties and interest on such difference, except
13 insofar as the taxpayer has previously made payments for that
14 month in excess of the minimum payments previously due.
15 If any payment provided for in this Section exceeds the
16 taxpayer's liabilities under this Act, the Use Tax Act, the
17 Service Occupation Tax Act, and the Service Use Tax Act, as
18 shown on an original monthly return, the Department shall, if
19 requested by the taxpayer, issue to the taxpayer a credit
20 memorandum no later than 30 days after the date of payment. The
21 credit evidenced by such credit memorandum may be assigned by
22 the taxpayer to a similar taxpayer under this Act, the Use Tax
23 Act, the Service Occupation Tax Act, or the Service Use Tax
24 Act, in accordance with reasonable rules and regulations to be
25 prescribed by the Department. If no such request is made, the
26 taxpayer may credit such excess payment against tax liability
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1 subsequently to be remitted to the Department under this Act,
2 the Use Tax Act, the Service Occupation Tax Act, or the Service
3 Use Tax Act, in accordance with reasonable rules and
4 regulations prescribed by the Department. If the Department
5 subsequently determined that all or any part of the credit
6 taken was not actually due to the taxpayer, the taxpayer's
7 vendor's discount shall be reduced, if necessary, to reflect
8 the difference between the credit taken and that actually due,
9 and that taxpayer shall be liable for penalties and interest
10 on such difference.
11 If a retailer of motor fuel is entitled to a credit under
12 Section 2d of this Act which exceeds the taxpayer's liability
13 to the Department under this Act for the month for which the
14 taxpayer is filing a return, the Department shall issue the
15 taxpayer a credit memorandum for the excess.
16 Beginning January 1, 1990, each month the Department shall
17 pay into the Local Government Tax Fund, a special fund in the
18 State treasury which is hereby created, the net revenue
19 realized for the preceding month from the 1% tax imposed under
20 this Act.
21 Beginning January 1, 1990, each month the Department shall
22 pay into the County and Mass Transit District Fund, a special
23 fund in the State treasury which is hereby created, 4% of the
24 net revenue realized for the preceding month from the 6.25%
25 general rate other than aviation fuel sold on or after
26 December 1, 2019. This exception for aviation fuel only
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1 applies for so long as the revenue use requirements of 49
2 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
3 Beginning August 1, 2000, each month the Department shall
4 pay into the County and Mass Transit District Fund 20% of the
5 net revenue realized for the preceding month from the 1.25%
6 rate on the selling price of motor fuel and gasohol. If, in any
7 month, the tax on sales tax holiday items, as defined in
8 Section 2-8, is imposed at the rate of 1.25%, then the
9 Department shall pay 20% of the net revenue realized for that
10 month from the 1.25% rate on the selling price of sales tax
11 holiday items into the County and Mass Transit District Fund.
12 Beginning January 1, 1990, each month the Department shall
13 pay into the Local Government Tax Fund 16% of the net revenue
14 realized for the preceding month from the 6.25% general rate
15 on the selling price of tangible personal property other than
16 aviation fuel sold on or after December 1, 2019. This
17 exception for aviation fuel only applies for so long as the
18 revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
19 47133 are binding on the State.
20 For aviation fuel sold on or after December 1, 2019, each
21 month the Department shall pay into the State Aviation Program
22 Fund 20% of the net revenue realized for the preceding month
23 from the 6.25% general rate on the selling price of aviation
24 fuel, less an amount estimated by the Department to be
25 required for refunds of the 20% portion of the tax on aviation
26 fuel under this Act, which amount shall be deposited into the
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HB2798 - 105 - LRB104 03457 HLH 19656 b
1 Aviation Fuel Sales Tax Refund Fund. The Department shall only
2 pay moneys into the State Aviation Program Fund and the
3 Aviation Fuel Sales Tax Refund Fund under this Act for so long
4 as the revenue use requirements of 49 U.S.C. 47107(b) and 49
5 U.S.C. 47133 are binding on the State.
6 Beginning August 1, 2000, each month the Department shall
7 pay into the Local Government Tax Fund 80% of the net revenue
8 realized for the preceding month from the 1.25% rate on the
9 selling price of motor fuel and gasohol. If, in any month, the
10 tax on sales tax holiday items, as defined in Section 2-8, is
11 imposed at the rate of 1.25%, then the Department shall pay 80%
12 of the net revenue realized for that month from the 1.25% rate
13 on the selling price of sales tax holiday items into the Local
14 Government Tax Fund.
15 Beginning October 1, 2009, each month the Department shall
16 pay into the Capital Projects Fund an amount that is equal to
17 an amount estimated by the Department to represent 80% of the
18 net revenue realized for the preceding month from the sale of
19 candy, grooming and hygiene products, and soft drinks that had
20 been taxed at a rate of 1% prior to September 1, 2009 but that
21 are now taxed at 6.25%.
22 Beginning July 1, 2011, each month the Department shall
23 pay into the Clean Air Act Permit Fund 80% of the net revenue
24 realized for the preceding month from the 6.25% general rate
25 on the selling price of sorbents used in Illinois in the
26 process of sorbent injection as used to comply with the
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1 Environmental Protection Act or the federal Clean Air Act, but
2 the total payment into the Clean Air Act Permit Fund under this
3 Act and the Use Tax Act shall not exceed $2,000,000 in any
4 fiscal year.
5 Beginning July 1, 2013, each month the Department shall
6 pay into the Underground Storage Tank Fund from the proceeds
7 collected under this Act, the Use Tax Act, the Service Use Tax
8 Act, and the Service Occupation Tax Act an amount equal to the
9 average monthly deficit in the Underground Storage Tank Fund
10 during the prior year, as certified annually by the Illinois
11 Environmental Protection Agency, but the total payment into
12 the Underground Storage Tank Fund under this Act, the Use Tax
13 Act, the Service Use Tax Act, and the Service Occupation Tax
14 Act shall not exceed $18,000,000 in any State fiscal year. As
15 used in this paragraph, the "average monthly deficit" shall be
16 equal to the difference between the average monthly claims for
17 payment by the fund and the average monthly revenues deposited
18 into the fund, excluding payments made pursuant to this
19 paragraph.
20 Beginning July 1, 2015, of the remainder of the moneys
21 received by the Department under the Use Tax Act, the Service
22 Use Tax Act, the Service Occupation Tax Act, and this Act, each
23 month the Department shall deposit $500,000 into the State
24 Crime Laboratory Fund.
25 Of the remainder of the moneys received by the Department
26 pursuant to this Act, (a) 1.75% thereof shall be paid into the
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HB2798 - 107 - LRB104 03457 HLH 19656 b
1 Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
2 and after July 1, 1989, 3.8% thereof shall be paid into the
3 Build Illinois Fund; provided, however, that if in any fiscal
4 year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
5 may be, of the moneys received by the Department and required
6 to be paid into the Build Illinois Fund pursuant to this Act,
7 Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
8 Act, and Section 9 of the Service Occupation Tax Act, such Acts
9 being hereinafter called the "Tax Acts" and such aggregate of
10 2.2% or 3.8%, as the case may be, of moneys being hereinafter
11 called the "Tax Act Amount", and (2) the amount transferred to
12 the Build Illinois Fund from the State and Local Sales Tax
13 Reform Fund shall be less than the Annual Specified Amount (as
14 hereinafter defined), an amount equal to the difference shall
15 be immediately paid into the Build Illinois Fund from other
16 moneys received by the Department pursuant to the Tax Acts;
17 the "Annual Specified Amount" means the amounts specified
18 below for fiscal years 1986 through 1993:
19Fiscal YearAnnual Specified Amount201986$54,800,000211987$76,650,000221988$80,480,000231989$88,510,000241990$115,330,000251991$145,470,000261992$182,730,000 19 Fiscal Year Annual Specified Amount 20 1986 $54,800,000 21 1987 $76,650,000 22 1988 $80,480,000 23 1989 $88,510,000 24 1990 $115,330,000 25 1991 $145,470,000 26 1992 $182,730,000
19 Fiscal Year Annual Specified Amount
20 1986 $54,800,000
21 1987 $76,650,000
22 1988 $80,480,000
23 1989 $88,510,000
24 1990 $115,330,000
25 1991 $145,470,000
26 1992 $182,730,000
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19 Fiscal Year Annual Specified Amount
20 1986 $54,800,000
21 1987 $76,650,000
22 1988 $80,480,000
23 1989 $88,510,000
24 1990 $115,330,000
25 1991 $145,470,000
26 1992 $182,730,000
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11993$206,520,000; 1 1993 $206,520,000;
1 1993 $206,520,000;
2 and means the Certified Annual Debt Service Requirement (as
3 defined in Section 13 of the Build Illinois Bond Act) or the
4 Tax Act Amount, whichever is greater, for fiscal year 1994 and
5 each fiscal year thereafter; and further provided, that if on
6 the last business day of any month the sum of (1) the Tax Act
7 Amount required to be deposited into the Build Illinois Bond
8 Account in the Build Illinois Fund during such month and (2)
9 the amount transferred to the Build Illinois Fund from the
10 State and Local Sales Tax Reform Fund shall have been less than
11 1/12 of the Annual Specified Amount, an amount equal to the
12 difference shall be immediately paid into the Build Illinois
13 Fund from other moneys received by the Department pursuant to
14 the Tax Acts; and, further provided, that in no event shall the
15 payments required under the preceding proviso result in
16 aggregate payments into the Build Illinois Fund pursuant to
17 this clause (b) for any fiscal year in excess of the greater of
18 (i) the Tax Act Amount or (ii) the Annual Specified Amount for
19 such fiscal year. The amounts payable into the Build Illinois
20 Fund under clause (b) of the first sentence in this paragraph
21 shall be payable only until such time as the aggregate amount
22 on deposit under each trust indenture securing Bonds issued
23 and outstanding pursuant to the Build Illinois Bond Act is
24 sufficient, taking into account any future investment income,
25 to fully provide, in accordance with such indenture, for the
26 defeasance of or the payment of the principal of, premium, if
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1 1993 $206,520,000;
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1 any, and interest on the Bonds secured by such indenture and on
2 any Bonds expected to be issued thereafter and all fees and
3 costs payable with respect thereto, all as certified by the
4 Director of the Bureau of the Budget (now Governor's Office of
5 Management and Budget). If on the last business day of any
6 month in which Bonds are outstanding pursuant to the Build
7 Illinois Bond Act, the aggregate of moneys deposited in the
8 Build Illinois Bond Account in the Build Illinois Fund in such
9 month shall be less than the amount required to be transferred
10 in such month from the Build Illinois Bond Account to the Build
11 Illinois Bond Retirement and Interest Fund pursuant to Section
12 13 of the Build Illinois Bond Act, an amount equal to such
13 deficiency shall be immediately paid from other moneys
14 received by the Department pursuant to the Tax Acts to the
15 Build Illinois Fund; provided, however, that any amounts paid
16 to the Build Illinois Fund in any fiscal year pursuant to this
17 sentence shall be deemed to constitute payments pursuant to
18 clause (b) of the first sentence of this paragraph and shall
19 reduce the amount otherwise payable for such fiscal year
20 pursuant to that clause (b). 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
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HB2798 - 110 - LRB104 03457 HLH 19656 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 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.
11Fiscal YearTotal Deposit121993 $0131994 53,000,000141995 58,000,000151996 61,000,000161997 64,000,000171998 68,000,000181999 71,000,000192000 75,000,000202001 80,000,000212002 93,000,000222003 99,000,000232004103,000,000242005108,000,000252006113,000,000262007119,000,000 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
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
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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
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12008126,000,00022009132,000,00032010139,000,00042011146,000,00052012153,000,00062013161,000,00072014170,000,00082015179,000,00092016189,000,000102017199,000,000112018210,000,000122019221,000,000132020233,000,000142021300,000,000152022300,000,000162023300,000,000172024 300,000,000182025 300,000,000192026 300,000,000202027 375,000,000212028 375,000,000222029 375,000,000232030 375,000,000242031 375,000,000252032 375,000,000262033375,000,000 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
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
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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
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12034375,000,00022035375,000,00032036450,000,0004and 5each fiscal year 6thereafter that bonds 7are outstanding under 8Section 13.2 of the 9Metropolitan Pier and 10Exposition Authority Act, 11but not after fiscal year 2060. 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.
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,
HB2798 - 112 - LRB104 03457 HLH 19656 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.
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HB2798 - 113 - LRB104 03457 HLH 19656 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, and the
22 Illinois Tax Increment Fund pursuant to the preceding
23 paragraphs or in any amendments to this Section hereafter
24 enacted, beginning on the first day of the first calendar
25 month to occur on or after August 26, 2014 (the effective date
26 of Public Act 98-1098), each month, from the collections made
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HB2798 - 114 - LRB104 03457 HLH 19656 b
1 under Section 9 of the Use Tax Act, Section 9 of the Service
2 Use Tax Act, Section 9 of the Service Occupation Tax Act, and
3 Section 3 of the Retailers' Occupation Tax Act, the Department
4 shall pay into the Tax Compliance and Administration Fund, to
5 be used, subject to appropriation, to fund additional auditors
6 and compliance personnel at the Department of Revenue, an
7 amount equal to 1/12 of 5% of 80% of the cash receipts
8 collected during the preceding fiscal year by the Audit Bureau
9 of the Department under the Use Tax Act, the Service Use Tax
10 Act, the Service Occupation Tax Act, the Retailers' Occupation
11 Tax Act, and associated local occupation and use taxes
12 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, the Energy Infrastructure Fund, and the
16 Tax Compliance and Administration Fund as provided in this
17 Section, beginning on July 1, 2018 the Department shall pay
18 each month into the Downstate Public Transportation Fund the
19 moneys required to be so paid under Section 2-3 of the
20 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
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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
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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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HB2798 - 117 - LRB104 03457 HLH 19656 b
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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HB2798 - 118 - LRB104 03457 HLH 19656 b
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% thereof shall be paid into the State
7 treasury and 25% shall be reserved in a special account and
8 used only for the transfer to the Common School Fund as part of
9 the monthly transfer from the General Revenue Fund in
10 accordance with Section 8a of the State Finance Act.
11 The Department may, upon separate written notice to a
12 taxpayer, require the taxpayer to prepare and file with the
13 Department on a form prescribed by the Department within not
14 less than 60 days after receipt of the notice an annual
15 information return for the tax year specified in the notice.
16 Such annual return to the Department shall include a statement
17 of gross receipts as shown by the retailer's last federal
18 income tax return. If the total receipts of the business as
19 reported in the federal income tax return do not agree with the
20 gross receipts reported to the Department of Revenue for the
21 same period, the retailer shall attach to his annual return a
22 schedule showing a reconciliation of the 2 amounts and the
23 reasons for the difference. The retailer's annual return to
24 the Department shall also disclose the cost of goods sold by
25 the retailer during the year covered by such return, opening
26 and closing inventories of such goods for such year, costs of
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1 goods used from stock or taken from stock and given away by the
2 retailer during such year, payroll information of the
3 retailer's business during such year and any additional
4 reasonable information which the Department deems would be
5 helpful in determining the accuracy of the monthly, quarterly,
6 or annual returns filed by such retailer as provided for in
7 this Section.
8 If the annual information return required by this Section
9 is not filed when and as required, the taxpayer shall be liable
10 as follows:
11 (i) Until January 1, 1994, the taxpayer shall be
12 liable for a penalty equal to 1/6 of 1% of the tax due from
13 such taxpayer under this Act during the period to be
14 covered by the annual return for each month or fraction of
15 a month until such return is filed as required, the
16 penalty to be assessed and collected in the same manner as
17 any other penalty provided for in this Act.
18 (ii) On and after January 1, 1994, the taxpayer shall
19 be liable for a penalty as described in Section 3-4 of the
20 Uniform Penalty and Interest Act.
21 The chief executive officer, proprietor, owner, or highest
22 ranking manager shall sign the annual return to certify the
23 accuracy of the information contained therein. Any person who
24 willfully signs the annual return containing false or
25 inaccurate information shall be guilty of perjury and punished
26 accordingly. The annual return form prescribed by the
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1 Department shall include a warning that the person signing the
2 return may be liable for perjury.
3 The provisions of this Section concerning the filing of an
4 annual information return do not apply to a retailer who is not
5 required to file an income tax return with the United States
6 Government.
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 Any person who promotes, organizes, or provides retail
26 selling space for concessionaires or other types of sellers at
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1 the Illinois State Fair, DuQuoin State Fair, county fairs,
2 local fairs, art shows, flea markets, and similar exhibitions
3 or events, including any transient merchant as defined by
4 Section 2 of the Transient Merchant Act of 1987, is required to
5 file a report with the Department providing the name of the
6 merchant's business, the name of the person or persons engaged
7 in merchant's business, the permanent address and Illinois
8 Retailers Occupation Tax Registration Number of the merchant,
9 the dates and location of the event, and other reasonable
10 information that the Department may require. The report must
11 be filed not later than the 20th day of the month next
12 following the month during which the event with retail sales
13 was held. Any person who fails to file a report required by
14 this Section commits a business offense and is subject to a
15 fine not to exceed $250.
16 Any person engaged in the business of selling tangible
17 personal property at retail as a concessionaire or other type
18 of seller at the Illinois State Fair, county fairs, art shows,
19 flea markets, and similar exhibitions or events, or any
20 transient merchants, as defined by Section 2 of the Transient
21 Merchant Act of 1987, may be required to make a daily report of
22 the amount of such sales to the Department and to make a daily
23 payment of the full amount of tax due. The Department shall
24 impose this requirement when it finds that there is a
25 significant risk of loss of revenue to the State at such an
26 exhibition or event. Such a finding shall be based on evidence
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1 that a substantial number of concessionaires or other sellers
2 who are not residents of Illinois will be engaging in the
3 business of selling tangible personal property at retail at
4 the exhibition or event, or other evidence of a significant
5 risk of loss of revenue to the State. The Department shall
6 notify concessionaires and other sellers affected by the
7 imposition of this requirement. In the absence of notification
8 by the Department, the concessionaires and other sellers shall
9 file their returns as otherwise required in this Section.
10 (Source: P.A. 102-634, eff. 8-27-21; 102-700, Article 60,
11 Section 60-30, eff. 4-19-22; 102-700, Article 65, Section
12 65-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff.
13 1-1-23; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23; 103-363,
14 eff. 7-28-23; 103-592, Article 75, Section 75-20, eff. 1-1-25;
15 103-592, Article 110, Section 110-20, eff. 6-7-24; 103-605,
16 eff. 7-1-24; 103-1055, eff. 12-20-24.)
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