Bill Text: IL HB4071 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the State Finance Act to create the Working Families Fund. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act and various other tax Acts. Provides that the vendor discount is limited to $1,000 per calendar year. Provides for deposits into the Working Families Fund. Effective immediately.

Spectrum: Partisan Bill (Democrat 7-0)

Status: (Introduced) 2023-05-10 - Added Co-Sponsor Rep. Lindsey LaPointe [HB4071 Detail]

Download: Illinois-2023-HB4071-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4071 Introduced , by Rep. Will Guzzardi SYNOPSIS AS INTRODUCED:
30 ILCS 105/5.990 new
30 ILCS 105/6z-139 new
35 ILCS 105/9 from Ch. 120, par. 439.9
35 ILCS 110/9 from Ch. 120, par. 439.39
35 ILCS 115/9 from Ch. 120, par. 439.109
35 ILCS 120/3 from Ch. 120, par. 442
35 ILCS 130/2 from Ch. 120, par. 453.2
35 ILCS 135/3 from Ch. 120, par. 453.33
35 ILCS 145/6 from Ch. 120, par. 481b.36
35 ILCS 505/2b from Ch. 120, par. 418b
35 ILCS 505/6 from Ch. 120, par. 422
35 ILCS 505/6a from Ch. 120, par. 422a
35 ILCS 630/6 from Ch. 120, par. 2006
235 ILCS 5/8-1
235 ILCS 5/8-2 from Ch. 43, par. 159
Amends the State Finance Act to create the Working Families Fund. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act and various other tax Acts. Provides that the vendor discount is limited to $1,000 per calendar year. Provides for deposits into the Working Families Fund. Effective immediately.
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A BILL FOR
HB4071 LRB103 32235 HLH 61432 b
AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The State Finance Act is amended by adding
Sections 5.990 and 6z-139 as follows:
(30 ILCS 105/5.990 new)
Sec. 5.990. The Working Families Fund.
(30 ILCS 105/6z-139 new)
Sec. 6z-139. The Working Families Fund; uses. The Working
Families Fund is hereby created as a special fund in the State
treasury. All moneys deposited into the Fund shall be
appropriated to child care, ending homelessness, or public
schools. Moneys appropriated from the Fund shall supplement
and not supplant the current levels of funding for each item.
Section 10. The Use Tax Act is amended by changing Section
9 as follows:
(35 ILCS 105/9) (from Ch. 120, par. 439.9)
Sec. 9. Except as to motor vehicles, watercraft, aircraft,
and trailers that are required to be registered with an agency
of this State, each retailer required or authorized to collect

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the tax imposed by this Act shall pay to the Department the
amount of such tax (except as otherwise provided) at the time
when he is required to file his return for the period during
which such tax was collected, less a discount of 2.1% prior to
January 1, 1990, and 1.75% on and after January 1, 1990 and
prior to January 1, 2024, and 2% on and after January 1, 2024,
or $5 per calendar year, whichever is greater, which is
allowed to reimburse the retailer for expenses incurred in
collecting the tax, keeping records, preparing and filing
returns, remitting the tax and supplying data to the
Department on request. On and after January 1, 1990 and prior
to January 1, 2024, in no event shall the discount allowed to
any vendor be less than $5 in any calendar year. On and after
January 1, 2024, in no event shall the discount allowed to any
vendor be less than $5 in any calendar year or more than $1,000
in any calendar year. When determining the discount allowed
under this Section, retailers shall include the amount of tax
that would have been due at the 6.25% rate but for the 1.25%
rate imposed on sales tax holiday items under Public Act
102-700 this amendatory Act of the 102nd General Assembly. The
discount under this Section is not allowed for the 1.25%
portion of taxes paid on aviation fuel that is subject to the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133. When determining the discount allowed under this
Section, retailers shall include the amount of tax that would
have been due at the 1% rate but for the 0% rate imposed under

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Public Act 102-700 this amendatory Act of the 102nd General
Assembly. In the case of retailers who report and pay the tax
on a transaction by transaction basis, as provided in this
Section, such discount shall be taken with each such tax
remittance instead of when such retailer files his periodic
return. The discount allowed under this Section is allowed
only for returns that are filed in the manner required by this
Act. The Department may disallow the discount for retailers
whose certificate of registration is revoked at the time the
return is filed, but only if the Department's decision to
revoke the certificate of registration has become final. A
retailer need not remit that part of any tax collected by him
to the extent that he is required to remit and does remit the
tax imposed by the Retailers' Occupation Tax Act, with respect
to the sale of the same property.
Where such tangible personal property is sold under a
conditional sales contract, or under any other form of sale
wherein the payment of the principal sum, or a part thereof, is
extended beyond the close of the period for which the return is
filed, the retailer, in collecting the tax (except as to motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State), may collect for
each tax return period, only the tax applicable to that part of
the selling price actually received during such tax return
period.
Except as provided in this Section, on or before the

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twentieth day of each calendar month, such retailer shall file
a return for the preceding calendar month. Such return shall
be filed on forms prescribed by the Department and shall
furnish such information as the Department may reasonably
require. The return shall include the gross receipts on food
for human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, food
consisting of or infused with adult use cannabis, soft drinks,
and food that has been prepared for immediate consumption)
which were received during the preceding calendar month,
quarter, or year, as appropriate, and upon which tax would
have been due but for the 0% rate imposed under Public Act
102-700 this amendatory Act of the 102nd General Assembly. The
return shall also include the amount of tax that would have
been due on food for human consumption that is to be consumed
off the premises where it is sold (other than alcoholic
beverages, food consisting of or infused with adult use
cannabis, soft drinks, and food that has been prepared for
immediate consumption) but for the 0% rate imposed under
Public Act 102-700 this amendatory Act of the 102nd General
Assembly.
On and after January 1, 2018, except for returns required
to be filed prior to January 1, 2023 for motor vehicles,
watercraft, aircraft, and trailers that are required to be
registered with an agency of this State, with respect to
retailers whose annual gross receipts average $20,000 or more,

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all returns required to be filed pursuant to this Act shall be
filed electronically. On and after January 1, 2023, with
respect to retailers whose annual gross receipts average
$20,000 or more, all returns required to be filed pursuant to
this Act, including, but not limited to, returns for motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State, shall be filed
electronically. Retailers who demonstrate that they do not
have access to the Internet or demonstrate hardship in filing
electronically may petition the Department to waive the
electronic filing requirement.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in the business of selling tangible
personal property at retail in this State;
3. The total amount of taxable receipts received by
him during the preceding calendar month from sales of
tangible personal property by him during such preceding
calendar month, including receipts from charge and time

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sales, but less all deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the Department
may require.
Each retailer required or authorized to collect the tax
imposed by this Act on aviation fuel sold at retail in this
State during the preceding calendar month shall, instead of
reporting and paying tax on aviation fuel as otherwise
required by this Section, report and pay such tax on a separate
aviation fuel tax return. The requirements related to the
return shall be as otherwise provided in this Section.
Notwithstanding any other provisions of this Act to the
contrary, retailers collecting tax on aviation fuel shall file
all aviation fuel tax returns and shall make all aviation fuel
tax payments by electronic means in the manner and form
required by the Department. For purposes of this Section,
"aviation fuel" means jet fuel and aviation gasoline.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Notwithstanding any other provision of this Act to the
contrary, retailers subject to tax on cannabis shall file all

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cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall
make all payments required by rules of the Department by
electronic funds transfer. Beginning October 1, 1995, a
taxpayer who has an average monthly tax liability of $50,000
or more shall make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1,
2000, a taxpayer who has an annual tax liability of $200,000 or
more shall make all payments required by rules of the
Department by electronic funds transfer. The term "annual tax
liability" shall be the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year. The term "average monthly
tax liability" means the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year divided by 12. Beginning
on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the

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

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

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liability for the month or 26.25% of the taxpayer's liability
for the same calendar month of the preceding year. If the month
during which such tax liability is incurred begins on or after
January 1, 1988, and prior to January 1, 1989, or begins on or
after January 1, 1996, each payment shall be in an amount equal
to 22.5% of the taxpayer's actual liability for the month or
25% of the taxpayer's liability for the same calendar month of
the preceding year. If the month during which such tax
liability is incurred begins on or after January 1, 1989, and
prior to January 1, 1996, each payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the
month or 25% of the taxpayer's liability for the same calendar
month of the preceding year or 100% of the taxpayer's actual
liability for the quarter monthly reporting period. The amount
of such quarter monthly payments shall be credited against the
final tax liability of the taxpayer's return for that month.
Before October 1, 2000, once applicable, the requirement of
the making of quarter monthly payments to the Department shall
continue until such taxpayer's average monthly liability to
the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the
month of lowest liability) is less than $9,000, or until such
taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $10,000. However, if a
taxpayer can show the Department that a substantial change in

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the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $10,000
threshold stated above, then such taxpayer may petition the
Department for change in such taxpayer's reporting status. On
and after October 1, 2000, once applicable, the requirement of
the making of quarter monthly payments to the Department shall
continue until such taxpayer's average monthly liability to
the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the
month of lowest liability) is less than $19,000 or until such
taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $20,000. However, if a
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $20,000
threshold stated above, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status.
The Department shall change such taxpayer's reporting status
unless it finds that such change is seasonal in nature and not
likely to be long term. Quarter monthly payment status shall
be determined under this paragraph as if the rate reduction to
1.25% in Public Act 102-700 this amendatory Act of the 102nd
General Assembly on sales tax holiday items had not occurred.

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For quarter monthly payments due on or after July 1, 2023 and
through June 30, 2024, "25% of the taxpayer's liability for
the same calendar month of the preceding year" shall be
determined as if the rate reduction to 1.25% in Public Act
102-700 this amendatory Act of the 102nd General Assembly on
sales tax holiday items had not occurred. Quarter monthly
payment status shall be determined under this paragraph as if
the rate reduction to 0% in Public Act 102-700 this amendatory
Act of the 102nd General Assembly on food for human
consumption that is to be consumed off the premises where it is
sold (other than alcoholic beverages, food consisting of or
infused with adult use cannabis, soft drinks, and food that
has been prepared for immediate consumption) had not occurred.
For quarter monthly payments due under this paragraph on or
after July 1, 2023 and through June 30, 2024, "25% of the
taxpayer's liability for the same calendar month of the
preceding year" shall be determined as if the rate reduction
to 0% in Public Act 102-700 this amendatory Act of the 102nd
General Assembly had not occurred. If any such quarter monthly
payment is not paid at the time or in the amount required by
this Section, then the taxpayer shall be liable for penalties
and interest on the difference between the minimum amount due
and the amount of such quarter monthly payment actually and
timely paid, except insofar as the taxpayer has previously
made payments for that month to the Department in excess of the
minimum payments previously due as provided in this Section.

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The Department shall make reasonable rules and regulations to
govern the quarter monthly payment amount and quarter monthly
payment dates for taxpayers who file on other than a calendar
monthly basis.
If any such payment provided for in this Section exceeds
the taxpayer's liabilities under this Act, the Retailers'
Occupation Tax Act, the Service Occupation Tax Act and the
Service Use Tax Act, as shown by an original monthly return,
the Department shall issue to the taxpayer a credit memorandum
no later than 30 days after the date of payment, which
memorandum may be submitted by the taxpayer to the Department
in payment of tax liability subsequently to be remitted by the
taxpayer to the Department or be assigned by the taxpayer to a
similar taxpayer under this Act, the Retailers' Occupation Tax
Act, the Service Occupation Tax Act or the Service Use Tax Act,
in accordance with reasonable rules and regulations to be
prescribed by the Department, except that if such excess
payment is shown on an original monthly return and is made
after December 31, 1986, no credit memorandum shall be issued,
unless requested by the taxpayer. If no such request is made,
the taxpayer may credit such excess payment against tax
liability subsequently to be remitted by the taxpayer to the
Department under this Act, the Retailers' Occupation Tax Act,
the Service Occupation Tax Act or the Service Use Tax Act, in
accordance with reasonable rules and regulations prescribed by
the Department. If the Department subsequently determines that

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all or any part of the credit taken was not actually due to the
taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
be reduced by an amount generated by calculating 2.1% or 1.75%
of the difference between the credit taken and that actually
due and then multiplying that amount by the vendor discount
percentage, and the taxpayer shall be liable for penalties and
interest on such difference.
If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February, and March of a given
year being due by April 20 of such year; with the return for
April, May and June of a given year being due by July 20 of
such year; with the return for July, August and September of a
given year being due by October 20 of such year, and with the
return for October, November and December of a given year
being due by January 20 of the following year.
If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
liability to the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January 20
of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as

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monthly returns.
Notwithstanding any other provision in this Act concerning
the time within which a retailer may file his return, in the
case of any retailer who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such retailer shall file a final return under this Act with the
Department not more than one month after discontinuing such
business.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, except as otherwise provided in this
Section, every retailer selling this kind of tangible personal
property shall file, with the Department, upon a form to be
prescribed and supplied by the Department, a separate return
for each such item of tangible personal property which the
retailer sells, except that if, in the same transaction, (i) a
retailer of aircraft, watercraft, motor vehicles or trailers
transfers more than one aircraft, watercraft, motor vehicle or
trailer to another aircraft, watercraft, motor vehicle or
trailer retailer for the purpose of resale or (ii) a retailer
of aircraft, watercraft, motor vehicles, or trailers transfers
more than one aircraft, watercraft, motor vehicle, or trailer
to a purchaser for use as a qualifying rolling stock as
provided in Section 3-55 of this Act, then that seller may
report the transfer of all the aircraft, watercraft, motor
vehicles or trailers involved in that transaction to the

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Department on the same uniform invoice-transaction reporting
return form. For purposes of this Section, "watercraft" means
a Class 2, Class 3, or Class 4 watercraft as defined in Section
3-2 of the Boat Registration and Safety Act, a personal
watercraft, or any boat equipped with an inboard motor.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, every person who is engaged in the
business of leasing or renting such items and who, in
connection with such business, sells any such item to a
retailer for the purpose of resale is, notwithstanding any
other provision of this Section to the contrary, authorized to
meet the return-filing requirement of this Act by reporting
the transfer of all the aircraft, watercraft, motor vehicles,
or trailers transferred for resale during a month to the
Department on the same uniform invoice-transaction reporting
return form on or before the 20th of the month following the
month in which the transfer takes place. Notwithstanding any
other provision of this Act to the contrary, all returns filed
under this paragraph must be filed by electronic means in the
manner and form as required by the Department.
The transaction reporting return in the case of motor
vehicles or trailers that are required to be registered with
an agency of this State, shall be the same document as the
Uniform Invoice referred to in Section 5-402 of the Illinois
Vehicle Code and must show the name and address of the seller;

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the name and address of the purchaser; the amount of the
selling price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 2 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling
price; the amount of tax due from the retailer with respect to
such transaction; the amount of tax collected from the
purchaser by the retailer on such transaction (or satisfactory
evidence that such tax is not due in that particular instance,
if that is claimed to be the fact); the place and date of the
sale; a sufficient identification of the property sold; such
other information as is required in Section 5-402 of the
Illinois Vehicle Code, and such other information as the
Department may reasonably require.
The transaction reporting return in the case of watercraft
and aircraft must show the name and address of the seller; the
name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 2 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling
price; the amount of tax due from the retailer with respect to

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such transaction; the amount of tax collected from the
purchaser by the retailer on such transaction (or satisfactory
evidence that such tax is not due in that particular instance,
if that is claimed to be the fact); the place and date of the
sale, a sufficient identification of the property sold, and
such other information as the Department may reasonably
require.
Such transaction reporting return shall be filed not later
than 20 days after the date of delivery of the item that is
being sold, but may be filed by the retailer at any time sooner
than that if he chooses to do so. The transaction reporting
return and tax remittance or proof of exemption from the tax
that is imposed by this Act may be transmitted to the
Department by way of the State agency with which, or State
officer with whom, the tangible personal property must be
titled or registered (if titling or registration is required)
if the Department and such agency or State officer determine
that this procedure will expedite the processing of
applications for title or registration.
With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the
Department shall issue, in the purchaser's name, a tax receipt
(or a certificate of exemption if the Department is satisfied
that the particular sale is tax exempt) which such purchaser

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may submit to the agency with which, or State officer with
whom, he must title or register the tangible personal property
that is involved (if titling or registration is required) in
support of such purchaser's application for an Illinois
certificate or other evidence of title or registration to such
tangible personal property.
No retailer's failure or refusal to remit tax under this
Act precludes a user, who has paid the proper tax to the
retailer, from obtaining his certificate of title or other
evidence of title or registration (if titling or registration
is required) upon satisfying the Department that such user has
paid the proper tax (if tax is due) to the retailer. The
Department shall adopt appropriate rules to carry out the
mandate of this paragraph.
If the user who would otherwise pay tax to the retailer
wants the transaction reporting return filed and the payment
of tax or proof of exemption made to the Department before the
retailer is willing to take these actions and such user has not
paid the tax to the retailer, such user may certify to the fact
of such delay by the retailer, and may (upon the Department
being satisfied of the truth of such certification) transmit
the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to
the Department and obtain his tax receipt or exemption
determination, in which event the transaction reporting return
and tax remittance (if a tax payment was required) shall be

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credited by the Department to the proper retailer's account
with the Department, but without the 2.1% or 1.75% discount
provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the
same amount and in the same form in which it would be remitted
if the tax had been remitted to the Department by the retailer.
Where a retailer collects the tax with respect to the
selling price of tangible personal property which he sells and
the purchaser thereafter returns such tangible personal
property and the retailer refunds the selling price thereof to
the purchaser, such retailer shall also refund, to the
purchaser, the tax so collected from the purchaser. When
filing his return for the period in which he refunds such tax
to the purchaser, the retailer may deduct the amount of the tax
so refunded by him to the purchaser from any other use tax
which such retailer may be required to pay or remit to the
Department, as shown by such return, if the amount of the tax
to be deducted was previously remitted to the Department by
such retailer. If the retailer has not previously remitted the
amount of such tax to the Department, he is entitled to no
deduction under this Act upon refunding such tax to the
purchaser.
Any retailer filing a return under this Section shall also
include (for the purpose of paying tax thereon) the total tax
covered by such return upon the selling price of tangible
personal property purchased by him at retail from a retailer,

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but as to which the tax imposed by this Act was not collected
from the retailer filing such return, and such retailer shall
remit the amount of such tax to the Department when filing such
return.
If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable retailers, who are required to file
returns hereunder and also under the Retailers' Occupation Tax
Act, to furnish all the return information required by both
Acts on the one form.
Where the retailer has more than one business registered
with the Department under separate registration under this
Act, such retailer may not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
Beginning February 1, 2024, each month the Department
shall pay into the Working Families Fund an amount equal to any
net revenue realized for the preceding month as a result of the
limit on the vendor's discount of $1,000 annually, net of the
difference between 1.75% and the vendor's discount of 2%.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund, a special
fund in the State Treasury which is hereby created, the
remaining net revenue realized for the preceding month from
the 1% tax imposed under this Act.
Beginning January 1, 1990, each month the Department shall

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pay into the County and Mass Transit District Fund 4% of the
remaining net revenue realized for the preceding month from
the 6.25% general rate on the selling price of tangible
personal property which is purchased outside Illinois at
retail from a retailer and which is titled or registered by an
agency of this State's government.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund, a special
fund in the State Treasury, 20% of the remaining net revenue
realized for the preceding month from the 6.25% general rate
on the selling price of tangible personal property, other than
(i) tangible personal property which is purchased outside
Illinois at retail from a retailer and which is titled or
registered by an agency of this State's government and (ii)
aviation fuel sold on or after December 1, 2019. This
exception for aviation fuel only applies for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the remaining net revenue realized for the
preceding month from the 6.25% general rate on the selling
price of aviation fuel, less an amount estimated by the
Department to be required for refunds of the 20% portion of the
tax on aviation fuel under this Act, which amount shall be
deposited into the Aviation Fuel Sales Tax Refund Fund. The

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Department shall only pay moneys into the State Aviation
Program Fund and the Aviation Fuels Sales Tax Refund Fund
under this Act for so long as the revenue use requirements of
49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
State.
Beginning August 1, 2000, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 100% of the
remaining net revenue realized for the preceding month from
the 1.25% rate on the selling price of motor fuel and gasohol.
If, in any month, the tax on sales tax holiday items, as
defined in Section 3-6, is imposed at the rate of 1.25%, then
the Department shall pay 100% of the remaining net revenue
realized for that month from the 1.25% rate on the selling
price of sales tax holiday items into the State and Local Sales
Tax Reform Fund.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the remaining net
revenue realized for the preceding month from the 6.25%
general rate on the selling price of tangible personal
property which is purchased outside Illinois at retail from a
retailer and which is titled or registered by an agency of this
State's government.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
remaining net revenue realized for the preceding month from

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the sale of candy, grooming and hygiene products, and soft
drinks that had been taxed at a rate of 1% prior to September
1, 2009 but that are now taxed at 6.25%.
Beginning July 1, 2011, each month the Department shall
pay into the Clean Air Act Permit Fund 80% of the remaining net
revenue realized for the preceding month from the 6.25%
general rate on the selling price of sorbents used in Illinois
in the process of sorbent injection as used to comply with the
Environmental Protection Act or the federal Clean Air Act, but
the total payment into the Clean Air Act Permit Fund under this
Act and the Retailers' Occupation Tax Act shall not exceed
$2,000,000 in any fiscal year.
Beginning July 1, 2013, each month the Department shall
pay into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Service Use Tax Act, the Service
Occupation Tax Act, and the Retailers' Occupation Tax Act an
amount equal to the average monthly deficit in the Underground
Storage Tank Fund during the prior year, as certified annually
by the Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Service Use Tax Act, the Service Occupation Tax Act, and
the Retailers' Occupation Tax Act shall not exceed $18,000,000
in any State fiscal year. As used in this paragraph, the
"average monthly deficit" shall be equal to the difference
between the average monthly claims for payment by the fund and
the average monthly revenues deposited into the fund,

HB4071 - 25 - LRB103 32235 HLH 61432 b
excluding payments made pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under this Act, the Service Use Tax
Act, the Service Occupation Tax Act, and the Retailers'
Occupation Tax Act, each month the Department shall deposit
$500,000 into the State Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last

HB4071 - 26 - LRB103 32235 HLH 61432 b
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Bond Account
in the Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture
securing Bonds issued and outstanding pursuant to the Build
Illinois Bond Act is sufficient, taking into account any
future investment income, to fully provide, in accordance with
such indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on

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the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited in the Build Illinois Bond
Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois
Fund; provided, however, that any amounts paid to the Build
Illinois Fund in any fiscal year pursuant to this sentence
shall be deemed to constitute payments pursuant to clause (b)
of the preceding sentence and shall reduce the amount
otherwise payable for such fiscal year pursuant to clause (b)
of the preceding sentence. The moneys received by the
Department pursuant to this Act and required to be deposited
into the Build Illinois Fund are subject to the pledge, claim
and charge set forth in Section 12 of the Build Illinois Bond
Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not

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in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000

HB4071 - 29 - LRB103 32235 HLH 61432 b
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 300,000,000
2022 300,000,000
2023 300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034 375,000,000
2035 375,000,000
2036 450,000,000
and

HB4071 - 30 - LRB103 32235 HLH 61432 b
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, for aviation fuel sold on or after December 1, 2019,
the Department shall each month deposit into the Aviation Fuel

HB4071 - 31 - LRB103 32235 HLH 61432 b
Sales Tax Refund Fund an amount estimated by the Department to
be required for refunds of the 80% portion of the tax on
aviation fuel under this Act. The Department shall only
deposit moneys into the Aviation Fuel Sales Tax Refund Fund
under this paragraph for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois
Tax Increment Fund 0.27% of 80% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a
25-year period, the Department shall each month pay into the
Energy Infrastructure Fund 80% of the remaining net revenue
realized from the 6.25% general rate on the selling price of
Illinois-mined coal that was sold to an eligible business. For
purposes of this paragraph, the term "eligible business" means
a new electric generating facility certified pursuant to

HB4071 - 32 - LRB103 32235 HLH 61432 b
Section 605-332 of the Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, and the Energy Infrastructure Fund
pursuant to the preceding paragraphs or in any amendments to
this Section hereafter enacted, beginning on the first day of
the first calendar month to occur on or after August 26, 2014
(the effective date of Public Act 98-1098), each month, from
the collections made under Section 9 of the Use Tax Act,
Section 9 of the Service Use Tax Act, Section 9 of the Service
Occupation Tax Act, and Section 3 of the Retailers' Occupation
Tax Act, the Department shall pay into the Tax Compliance and
Administration Fund, to be used, subject to appropriation, to
fund additional auditors and compliance personnel at the
Department of Revenue, an amount equal to 1/12 of 5% of 80% of
the cash receipts collected during the preceding fiscal year
by the Audit Bureau of the Department under the Use Tax Act,
the Service Use Tax Act, the Service Occupation Tax Act, the
Retailers' Occupation Tax Act, and associated local occupation
and use taxes administered by the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, the Energy Infrastructure Fund, and the
Tax Compliance and Administration Fund as provided in this
Section, beginning on July 1, 2018 the Department shall pay

HB4071 - 33 - LRB103 32235 HLH 61432 b
each month into the Downstate Public Transportation Fund the
moneys required to be so paid under Section 2-3 of the
Downstate Public Transportation Act.
Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim, and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year............................Total Deposit
2024....................................$200,000,000

HB4071 - 34 - LRB103 32235 HLH 61432 b
2025....................................$206,000,000
2026....................................$212,200,000
2027....................................$218,500,000
2028....................................$225,100,000
2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000
2034....................................$341,200,000
2035....................................$351,400,000
2036....................................$361,900,000
2037....................................$372,800,000
2038....................................$384,000,000
2039....................................$395,500,000
2040....................................$407,400,000
2041....................................$419,600,000
2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the State and Local Sales Tax
Reform Fund, the Build Illinois Fund, the McCormick Place
Expansion Project Fund, the Illinois Tax Increment Fund, the
Energy Infrastructure Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount

HB4071 - 35 - LRB103 32235 HLH 61432 b
estimated to represent 16% of the remaining net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2022 and until July 1, 2023, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, the Energy
Infrastructure Fund, and the Tax Compliance and Administration
Fund as provided in this Section, the Department shall pay
each month into the Road Fund the amount estimated to
represent 32% of the remaining net revenue realized from the
taxes imposed on motor fuel and gasohol. Beginning July 1,
2023 and until July 1, 2024, subject to the payment of amounts
into the State and Local Sales Tax Reform Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, the Energy Infrastructure Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 48% of the
remaining net revenue realized from the taxes imposed on motor
fuel and gasohol. Beginning July 1, 2024 and until July 1,
2025, subject to the payment of amounts into the State and
Local Sales Tax Reform Fund, the Build Illinois Fund, the
McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, the Energy Infrastructure Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road

HB4071 - 36 - LRB103 32235 HLH 61432 b
Fund the amount estimated to represent 64% of the remaining
net revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning on July 1, 2025, subject to the payment of
amounts into the State and Local Sales Tax Reform Fund, the
Build Illinois Fund, the McCormick Place Expansion Project
Fund, the Illinois Tax Increment Fund, the Energy
Infrastructure Fund, and the Tax Compliance and Administration
Fund as provided in this Section, the Department shall pay
each month into the Road Fund the amount estimated to
represent 80% of the remaining net revenue realized from the
taxes imposed on motor fuel and gasohol. As used in this
paragraph "motor fuel" has the meaning given to that term in
Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the
meaning given to that term in Section 3-40 of this Act.
Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the State
Treasury and 25% shall be reserved in a special account and
used only for the transfer to the Common School Fund as part of
the monthly transfer from the General Revenue Fund in
accordance with Section 8a of the State Finance Act.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this

HB4071 - 37 - LRB103 32235 HLH 61432 b
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability. Remaining net revenue means net
revenue minus any amount paid into the Working Families Fund
pursuant to this Section.
For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to
such sales, if the retailers who are affected do not make
written objection to the Department to this arrangement.
(Source: P.A. 101-10, Article 15, Section 15-10, eff. 6-5-19;
101-10, Article 25, Section 25-105, eff. 6-5-19; 101-27, eff.
6-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19;
101-636, eff. 6-10-20; 102-700, Article 60, Section 60-15,
eff. 4-19-22; 102-700, Article 65, Section 65-5, eff. 4-19-22;
102-1019, eff. 1-1-23; revised 12-13-22.)
Section 15. The Service Use Tax Act is amended by changing
Section 9 as follows:
(35 ILCS 110/9) (from Ch. 120, par. 439.39)
Sec. 9. Each serviceman required or authorized to collect

HB4071 - 38 - LRB103 32235 HLH 61432 b
the tax herein imposed shall pay to the Department the amount
of such tax (except as otherwise provided) at the time when he
is required to file his return for the period during which such
tax was collected, less a discount of 2.1% prior to January 1,
1990, and 1.75% on and after January 1, 1990 and prior to
January 1, 2024, and 2% on and after January 1, 2024, or $5 per
calendar year, whichever is greater, which is allowed to
reimburse the serviceman for expenses incurred in collecting
the tax, keeping records, preparing and filing returns,
remitting the tax and supplying data to the Department on
request. On and after January 1, 1990 and prior to January 1,
2024, in no event shall the discount allowed to any vendor be
less than $5 in any calendar year. On and after January 1,
2024, in no event shall the discount allowed to any vendor be
less than $5 in any calendar year or more than $1,000 in any
calendar year. When determining the discount allowed under
this Section, servicemen shall include the amount of tax that
would have been due at the 1% rate but for the 0% rate imposed
under this amendatory Act of the 102nd General Assembly. The
discount under this Section is not allowed for the 1.25%
portion of taxes paid on aviation fuel that is subject to the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133. The discount allowed under this Section is allowed only
for returns that are filed in the manner required by this Act.
The Department may disallow the discount for servicemen whose
certificate of registration is revoked at the time the return

HB4071 - 39 - LRB103 32235 HLH 61432 b
is filed, but only if the Department's decision to revoke the
certificate of registration has become final. A serviceman
need not remit that part of any tax collected by him to the
extent that he is required to pay and does pay the tax imposed
by the Service Occupation Tax Act with respect to his sale of
service involving the incidental transfer by him of the same
property.
Except as provided hereinafter in this Section, on or
before the twentieth day of each calendar month, such
serviceman shall file a return for the preceding calendar
month in accordance with reasonable Rules and Regulations to
be promulgated by the Department. Such return shall be filed
on a form prescribed by the Department and shall contain such
information as the Department may reasonably require. The
return shall include the gross receipts which were received
during the preceding calendar month or quarter on the
following items upon which tax would have been due but for the
0% rate imposed under this amendatory Act of the 102nd General
Assembly: (i) food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption); and (ii) food prepared for immediate
consumption and transferred incident to a sale of service
subject to this Act or the Service Occupation Tax Act by an
entity licensed under the Hospital Licensing Act, the Nursing

HB4071 - 40 - LRB103 32235 HLH 61432 b
Home Care Act, the Assisted Living and Shared Housing Act, the
ID/DD Community Care Act, the MC/DD Act, the Specialized
Mental Health Rehabilitation Act of 2013, or the Child Care
Act of 1969, or an entity that holds a permit issued pursuant
to the Life Care Facilities Act. The return shall also include
the amount of tax that would have been due on the items listed
in the previous sentence but for the 0% rate imposed under this
amendatory Act of the 102nd General Assembly.
On and after January 1, 2018, with respect to servicemen
whose annual gross receipts average $20,000 or more, all
returns required to be filed pursuant to this Act shall be
filed electronically. Servicemen who demonstrate that they do
not have access to the Internet or demonstrate hardship in
filing electronically may petition the Department to waive the
electronic filing requirement.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in business as a serviceman in this
State;

HB4071 - 41 - LRB103 32235 HLH 61432 b
3. The total amount of taxable receipts received by
him during the preceding calendar month, including
receipts from charge and time sales, but less all
deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the Department
may require.
Each serviceman required or authorized to collect the tax
imposed by this Act on aviation fuel transferred as an
incident of a sale of service in this State during the
preceding calendar month shall, instead of reporting and
paying tax on aviation fuel as otherwise required by this
Section, report and pay such tax on a separate aviation fuel
tax return. The requirements related to the return shall be as
otherwise provided in this Section. Notwithstanding any other
provisions of this Act to the contrary, servicemen collecting
tax on aviation fuel shall file all aviation fuel tax returns
and shall make all aviation fuel tax payments by electronic
means in the manner and form required by the Department. For
purposes of this Section, "aviation fuel" means jet fuel and
aviation gasoline.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,

HB4071 - 42 - LRB103 32235 HLH 61432 b
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Notwithstanding any other provision of this Act to the
contrary, servicemen subject to tax on cannabis shall file all
cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall
make all payments required by rules of the Department by
electronic funds transfer. Beginning October 1, 1995, a
taxpayer who has an average monthly tax liability of $50,000
or more shall make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1,
2000, a taxpayer who has an annual tax liability of $200,000 or
more shall make all payments required by rules of the
Department by electronic funds transfer. The term "annual tax
liability" shall be the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year. The term "average monthly
tax liability" means the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation

HB4071 - 43 - LRB103 32235 HLH 61432 b
and use tax laws administered by the Department, for the
immediately preceding calendar year divided by 12. Beginning
on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the
Department of Revenue Law shall make all payments required by
rules of the Department by electronic funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make
payments by electronic funds transfer. All taxpayers required
to make payments by electronic funds transfer shall make those
payments for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those
payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
If the serviceman is otherwise required to file a monthly
return and if the serviceman's average monthly tax liability
to the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February and March of a given year

HB4071 - 44 - LRB103 32235 HLH 61432 b
being due by April 20 of such year; with the return for April,
May and June of a given year being due by July 20 of such year;
with the return for July, August and September of a given year
being due by October 20 of such year, and with the return for
October, November and December of a given year being due by
January 20 of the following year.
If the serviceman is otherwise required to file a monthly
or quarterly return and if the serviceman's average monthly
tax liability to the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January 20
of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act concerning
the time within which a serviceman may file his return, in the
case of any serviceman who ceases to engage in a kind of
business which makes him responsible for filing returns under
this Act, such serviceman shall file a final return under this
Act with the Department not more than 1 month after
discontinuing such business.
Where a serviceman collects the tax with respect to the
selling price of property which he sells and the purchaser
thereafter returns such property and the serviceman refunds
the selling price thereof to the purchaser, such serviceman

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shall also refund, to the purchaser, the tax so collected from
the purchaser. When filing his return for the period in which
he refunds such tax to the purchaser, the serviceman may
deduct the amount of the tax so refunded by him to the
purchaser from any other Service Use Tax, Service Occupation
Tax, retailers' occupation tax or use tax which such
serviceman may be required to pay or remit to the Department,
as shown by such return, provided that the amount of the tax to
be deducted shall previously have been remitted to the
Department by such serviceman. If the serviceman shall not
previously have remitted the amount of such tax to the
Department, he shall be entitled to no deduction hereunder
upon refunding such tax to the purchaser.
Any serviceman filing a return hereunder shall also
include the total tax upon the selling price of tangible
personal property purchased for use by him as an incident to a
sale of service, and such serviceman shall remit the amount of
such tax to the Department when filing such return.
If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable servicemen, who are required to file
returns hereunder and also under the Service Occupation Tax
Act, to furnish all the return information required by both
Acts on the one form.
Where the serviceman has more than one business registered
with the Department under separate registration hereunder,

HB4071 - 46 - LRB103 32235 HLH 61432 b
such serviceman shall not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
Beginning February 1, 2024, each month the Department
shall pay into the Working Families Fund an amount equal to any
net revenue realized for the preceding month as a result of the
limit on the vendor's discount of $1,000 annually, net of the
difference between 1.75% and the vendor's discount of 2%.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Tax Reform Fund, a special fund in
the State Treasury, the remaining net revenue realized for the
preceding month from the 1% tax imposed under this Act.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 20% of the
remaining net revenue realized for the preceding month from
the 6.25% general rate on transfers of tangible personal
property, other than (i) tangible personal property which is
purchased outside Illinois at retail from a retailer and which
is titled or registered by an agency of this State's
government and (ii) aviation fuel sold on or after December 1,
2019. This exception for aviation fuel only applies for so
long as the revenue use requirements of 49 U.S.C. 47107(b) and
49 U.S.C. 47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the remaining net revenue realized for the

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preceding month from the 6.25% general rate on the selling
price of aviation fuel, less an amount estimated by the
Department to be required for refunds of the 20% portion of the
tax on aviation fuel under this Act, which amount shall be
deposited into the Aviation Fuel Sales Tax Refund Fund. The
Department shall only pay moneys into the State Aviation
Program Fund and the Aviation Fuel Sales Tax Refund Fund under
this Act for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 100% of the
remaining net revenue realized for the preceding month from
the 1.25% rate on the selling price of motor fuel and gasohol.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
remaining net revenue realized for the preceding month from
the sale of candy, grooming and hygiene products, and soft
drinks that had been taxed at a rate of 1% prior to September
1, 2009 but that are now taxed at 6.25%.
Beginning July 1, 2013, each month the Department shall
pay into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service
Occupation Tax Act, and the Retailers' Occupation Tax Act an
amount equal to the average monthly deficit in the Underground
Storage Tank Fund during the prior year, as certified annually

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by the Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Use Tax Act, the Service Occupation Tax Act, and the
Retailers' Occupation Tax Act shall not exceed $18,000,000 in
any State fiscal year. As used in this paragraph, the "average
monthly deficit" shall be equal to the difference between the
average monthly claims for payment by the fund and the average
monthly revenues deposited into the fund, excluding payments
made pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, this Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, each month the Department shall deposit $500,000 into the
State Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case

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may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Bond Account
in the Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture
securing Bonds issued and outstanding pursuant to the Build

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Illinois Bond Act is sufficient, taking into account any
future investment income, to fully provide, in accordance with
such indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited in the Build Illinois Bond
Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois
Fund; provided, however, that any amounts paid to the Build
Illinois Fund in any fiscal year pursuant to this sentence
shall be deemed to constitute payments pursuant to clause (b)
of the preceding sentence and shall reduce the amount
otherwise payable for such fiscal year pursuant to clause (b)
of the preceding sentence. The moneys received by the
Department pursuant to this Act and required to be deposited
into the Build Illinois Fund are subject to the pledge, claim

HB4071 - 51 - LRB103 32235 HLH 61432 b
and charge set forth in Section 12 of the Build Illinois Bond
Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000

HB4071 - 52 - LRB103 32235 HLH 61432 b
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 300,000,000
2022 300,000,000
2023 300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000

HB4071 - 53 - LRB103 32235 HLH 61432 b
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034 375,000,000
2035 375,000,000
2036 450,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project

HB4071 - 54 - LRB103 32235 HLH 61432 b
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, for aviation fuel sold on or after December 1, 2019,
the Department shall each month deposit into the Aviation Fuel
Sales Tax Refund Fund an amount estimated by the Department to
be required for refunds of the 80% portion of the tax on
aviation fuel under this Act. The Department shall only
deposit moneys into the Aviation Fuel Sales Tax Refund Fund
under this paragraph for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois
Tax Increment Fund 0.27% of 80% of the remaining net revenue
realized for the preceding month from the 6.25% general rate
on the selling price of tangible personal property.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the

HB4071 - 55 - LRB103 32235 HLH 61432 b
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a
25-year period, the Department shall each month pay into the
Energy Infrastructure Fund 80% of the remaining net revenue
realized from the 6.25% general rate on the selling price of
Illinois-mined coal that was sold to an eligible business. For
purposes of this paragraph, the term "eligible business" means
a new electric generating facility certified pursuant to
Section 605-332 of the Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, and the Energy Infrastructure Fund
pursuant to the preceding paragraphs or in any amendments to
this Section hereafter enacted, beginning on the first day of
the first calendar month to occur on or after August 26, 2014
(the effective date of Public Act 98-1098), each month, from
the collections made under Section 9 of the Use Tax Act,
Section 9 of the Service Use Tax Act, Section 9 of the Service
Occupation Tax Act, and Section 3 of the Retailers' Occupation
Tax Act, the Department shall pay into the Tax Compliance and
Administration Fund, to be used, subject to appropriation, to
fund additional auditors and compliance personnel at the
Department of Revenue, an amount equal to 1/12 of 5% of 80% of
the cash receipts collected during the preceding fiscal year

HB4071 - 56 - LRB103 32235 HLH 61432 b
by the Audit Bureau of the Department under the Use Tax Act,
the Service Use Tax Act, the Service Occupation Tax Act, the
Retailers' Occupation Tax Act, and associated local occupation
and use taxes administered by the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, the Energy Infrastructure Fund, and the
Tax Compliance and Administration Fund as provided in this
Section, beginning on July 1, 2018 the Department shall pay
each month into the Downstate Public Transportation Fund the
moneys required to be so paid under Section 2-3 of the
Downstate Public Transportation Act.
Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit

HB4071 - 57 - LRB103 32235 HLH 61432 b
Infrastructure Fund are subject to the pledge, claim, and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year............................Total Deposit
2024....................................$200,000,000
2025....................................$206,000,000
2026....................................$212,200,000
2027....................................$218,500,000
2028....................................$225,100,000
2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000
2034....................................$341,200,000
2035....................................$351,400,000
2036....................................$361,900,000
2037....................................$372,800,000
2038....................................$384,000,000
2039....................................$395,500,000
2040....................................$407,400,000
2041....................................$419,600,000

HB4071 - 58 - LRB103 32235 HLH 61432 b
2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the State and Local Sales Tax
Reform Fund, the Build Illinois Fund, the McCormick Place
Expansion Project Fund, the Illinois Tax Increment Fund, the
Energy Infrastructure Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 16% of the remaining net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2022 and until July 1, 2023, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, the Energy
Infrastructure Fund, and the Tax Compliance and Administration
Fund as provided in this Section, the Department shall pay
each month into the Road Fund the amount estimated to
represent 32% of the remaining net revenue realized from the
taxes imposed on motor fuel and gasohol. Beginning July 1,
2023 and until July 1, 2024, subject to the payment of amounts
into the State and Local Sales Tax Reform Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, the Energy Infrastructure Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the

HB4071 - 59 - LRB103 32235 HLH 61432 b
Road Fund the amount estimated to represent 48% of the
remaining net revenue realized from the taxes imposed on motor
fuel and gasohol. Beginning July 1, 2024 and until July 1,
2025, subject to the payment of amounts into the State and
Local Sales Tax Reform Fund, the Build Illinois Fund, the
McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, the Energy Infrastructure Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 64% of the remaining
net revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning on July 1, 2025, subject to the payment of
amounts into the State and Local Sales Tax Reform Fund, the
Build Illinois Fund, the McCormick Place Expansion Project
Fund, the Illinois Tax Increment Fund, the Energy
Infrastructure Fund, and the Tax Compliance and Administration
Fund as provided in this Section, the Department shall pay
each month into the Road Fund the amount estimated to
represent 80% of the remaining net revenue realized from the
taxes imposed on motor fuel and gasohol. As used in this
paragraph "motor fuel" has the meaning given to that term in
Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the
meaning given to that term in Section 3-40 of the Use Tax Act.
Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the
General Revenue Fund of the State Treasury and 25% shall be

HB4071 - 60 - LRB103 32235 HLH 61432 b
reserved in a special account and used only for the transfer to
the Common School Fund as part of the monthly transfer from the
General Revenue Fund in accordance with Section 8a of the
State Finance Act.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the remaining net revenue realized
under this Act for the second preceding month. Beginning April
1, 2000, this transfer is no longer required and shall not be
made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability. Remaining net revenue means net
revenue minus any amount paid into the Working Families Fund
pursuant to this Section.
(Source: P.A. 101-10, Article 15, Section 15-15, eff. 6-5-19;
101-10, Article 25, Section 25-110, eff. 6-5-19; 101-27, eff.
6-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19;
101-636, eff. 6-10-20; 102-700, eff. 4-19-22.)
Section 20. The Service Occupation Tax Act is amended by
changing Section 9 as follows:

HB4071 - 61 - LRB103 32235 HLH 61432 b
(35 ILCS 115/9) (from Ch. 120, par. 439.109)
Sec. 9. Each serviceman required or authorized to collect
the tax herein imposed shall pay to the Department the amount
of such tax at the time when he is required to file his return
for the period during which such tax was collectible, less a
discount of 2.1% prior to January 1, 1990, and 1.75% on and
after January 1, 1990 and prior to January 1, 2024, and 2% on
and after January 1, 2024, or $5 per calendar year, whichever
is greater, which is allowed to reimburse the serviceman for
expenses incurred in collecting the tax, keeping records,
preparing and filing returns, remitting the tax and supplying
data to the Department on request. On and after January 1, 1990
and prior to January 1, 2024, in no event shall the discount
allowed to any vendor be less than $5 in any calendar year. On
and after January 1, 2024, in no event shall the discount
allowed to any vendor be less than $5 in any calendar year or
more than $1,000 in any calendar year. When determining the
discount allowed under this Section, servicemen shall include
the amount of tax that would have been due at the 1% rate but
for the 0% rate imposed under this amendatory Act of the 102nd
General Assembly. The discount under this Section is not
allowed for the 1.25% portion of taxes paid on aviation fuel
that is subject to the revenue use requirements of 49 U.S.C.
47107(b) and 49 U.S.C. 47133. The discount allowed under this
Section is allowed only for returns that are filed in the
manner required by this Act. The Department may disallow the

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discount for servicemen whose certificate of registration is
revoked at the time the return is filed, but only if the
Department's decision to revoke the certificate of
registration has become final.
Where such tangible personal property is sold under a
conditional sales contract, or under any other form of sale
wherein the payment of the principal sum, or a part thereof, is
extended beyond the close of the period for which the return is
filed, the serviceman, in collecting the tax may collect, for
each tax return period, only the tax applicable to the part of
the selling price actually received during such tax return
period.
Except as provided hereinafter in this Section, on or
before the twentieth day of each calendar month, such
serviceman shall file a return for the preceding calendar
month in accordance with reasonable rules and regulations to
be promulgated by the Department of Revenue. Such return shall
be filed on a form prescribed by the Department and shall
contain such information as the Department may reasonably
require. The return shall include the gross receipts which
were received during the preceding calendar month or quarter
on the following items upon which tax would have been due but
for the 0% rate imposed under this amendatory Act of the 102nd
General Assembly: (i) food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult

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use cannabis, soft drinks, and food that has been prepared for
immediate consumption); and (ii) food prepared for immediate
consumption and transferred incident to a sale of service
subject to this Act or the Service Use Tax Act by an entity
licensed under the Hospital Licensing Act, the Nursing Home
Care Act, the Assisted Living and Shared Housing Act, the
ID/DD Community Care Act, the MC/DD Act, the Specialized
Mental Health Rehabilitation Act of 2013, or the Child Care
Act of 1969, or an entity that holds a permit issued pursuant
to the Life Care Facilities Act. The return shall also include
the amount of tax that would have been due on the items listed
in the previous sentence but for the 0% rate imposed under this
amendatory Act of the 102nd General Assembly.
On and after January 1, 2018, with respect to servicemen
whose annual gross receipts average $20,000 or more, all
returns required to be filed pursuant to this Act shall be
filed electronically. Servicemen who demonstrate that they do
not have access to the Internet or demonstrate hardship in
filing electronically may petition the Department to waive the
electronic filing requirement.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before

HB4071 - 64 - LRB103 32235 HLH 61432 b
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in business as a serviceman in this
State;
3. The total amount of taxable receipts received by
him during the preceding calendar month, including
receipts from charge and time sales, but less all
deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the Department
may require.
Each serviceman required or authorized to collect the tax
herein imposed on aviation fuel acquired as an incident to the
purchase of a service in this State during the preceding
calendar month shall, instead of reporting and paying tax as
otherwise required by this Section, report and pay such tax on
a separate aviation fuel tax return. The requirements related
to the return shall be as otherwise provided in this Section.
Notwithstanding any other provisions of this Act to the
contrary, servicemen transferring aviation fuel incident to
sales of service shall file all aviation fuel tax returns and
shall make all aviation fuel tax payments by electronic means

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in the manner and form required by the Department. For
purposes of this Section, "aviation fuel" means jet fuel and
aviation gasoline.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Notwithstanding any other provision of this Act to the
contrary, servicemen subject to tax on cannabis shall file all
cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
Prior to October 1, 2003, and on and after September 1,
2004 a serviceman may accept a Manufacturer's Purchase Credit
certification from a purchaser in satisfaction of Service Use
Tax as provided in Section 3-70 of the Service Use Tax Act if
the purchaser provides the appropriate documentation as
required by Section 3-70 of the Service Use Tax Act. A
Manufacturer's Purchase Credit certification, accepted prior
to October 1, 2003 or on or after September 1, 2004 by a
serviceman as provided in Section 3-70 of the Service Use Tax
Act, may be used by that serviceman to satisfy Service
Occupation Tax liability in the amount claimed in the
certification, not to exceed 6.25% of the receipts subject to
tax from a qualifying purchase. A Manufacturer's Purchase
Credit reported on any original or amended return filed under

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this Act after October 20, 2003 for reporting periods prior to
September 1, 2004 shall be disallowed. Manufacturer's Purchase
Credit reported on annual returns due on or after January 1,
2005 will be disallowed for periods prior to September 1,
2004. No Manufacturer's Purchase Credit may be used after
September 30, 2003 through August 31, 2004 to satisfy any tax
liability imposed under this Act, including any audit
liability.
If the serviceman's average monthly tax liability to the
Department does not exceed $200, the Department may authorize
his returns to be filed on a quarter annual basis, with the
return for January, February and March of a given year being
due by April 20 of such year; with the return for April, May
and June of a given year being due by July 20 of such year;
with the return for July, August and September of a given year
being due by October 20 of such year, and with the return for
October, November and December of a given year being due by
January 20 of the following year.
If the serviceman's average monthly tax liability to the
Department does not exceed $50, the Department may authorize
his returns to be filed on an annual basis, with the return for
a given year being due by January 20 of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act concerning

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the time within which a serviceman may file his return, in the
case of any serviceman who ceases to engage in a kind of
business which makes him responsible for filing returns under
this Act, such serviceman shall file a final return under this
Act with the Department not more than 1 month after
discontinuing such business.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall
make all payments required by rules of the Department by
electronic funds transfer. Beginning October 1, 1995, a
taxpayer who has an average monthly tax liability of $50,000
or more shall make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1,
2000, a taxpayer who has an annual tax liability of $200,000 or
more shall make all payments required by rules of the
Department by electronic funds transfer. The term "annual tax
liability" shall be the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year. The term "average monthly
tax liability" means the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the

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immediately preceding calendar year divided by 12. Beginning
on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the
Department of Revenue Law shall make all payments required by
rules of the Department by electronic funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make
payments by electronic funds transfer. All taxpayers required
to make payments by electronic funds transfer shall make those
payments for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those
payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
Where a serviceman collects the tax with respect to the
selling price of tangible personal property which he sells and
the purchaser thereafter returns such tangible personal
property and the serviceman refunds the selling price thereof
to the purchaser, such serviceman shall also refund, to the
purchaser, the tax so collected from the purchaser. When

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filing his return for the period in which he refunds such tax
to the purchaser, the serviceman may deduct the amount of the
tax so refunded by him to the purchaser from any other Service
Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
Use Tax which such serviceman may be required to pay or remit
to the Department, as shown by such return, provided that the
amount of the tax to be deducted shall previously have been
remitted to the Department by such serviceman. If the
serviceman shall not previously have remitted the amount of
such tax to the Department, he shall be entitled to no
deduction hereunder upon refunding such tax to the purchaser.
If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable servicemen, who are required to file
returns hereunder and also under the Retailers' Occupation Tax
Act, the Use Tax Act or the Service Use Tax Act, to furnish all
the return information required by all said Acts on the one
form.
Where the serviceman has more than one business registered
with the Department under separate registrations hereunder,
such serviceman shall file separate returns for each
registered business.
Beginning February 1, 2024, each month the Department
shall pay into the Working Families Fund an amount equal to any
net revenue realized for the preceding month as a result of the
limit on the vendor's discount of $1,000 annually, net of the

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difference between 1.75% and the vendor's discount of 2%.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund the remaining revenue
realized for the preceding month from the 1% tax imposed under
this Act.
Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund 4% of the
remaining revenue realized for the preceding month from the
6.25% general rate on sales of tangible personal property
other than aviation fuel sold on or after December 1, 2019.
This exception for aviation fuel only applies for so long as
the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the County and Mass Transit District Fund 20% of the
remaining net revenue realized for the preceding month from
the 1.25% rate on the selling price of motor fuel and gasohol.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the revenue
realized for the preceding month from the 6.25% general rate
on transfers of tangible personal property other than aviation
fuel sold on or after December 1, 2019. This exception for
aviation fuel only applies for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.
For aviation fuel sold on or after December 1, 2019, each

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month the Department shall pay into the State Aviation Program
Fund 20% of the remaining net revenue realized for the
preceding month from the 6.25% general rate on the selling
price of aviation fuel, less an amount estimated by the
Department to be required for refunds of the 20% portion of the
tax on aviation fuel under this Act, which amount shall be
deposited into the Aviation Fuel Sales Tax Refund Fund. The
Department shall only pay moneys into the State Aviation
Program Fund and the Aviation Fuel Sales Tax Refund Fund under
this Act for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the Local Government Tax Fund 80% of the remaining net
revenue realized for the preceding month from the 1.25% rate
on the selling price of motor fuel and gasohol.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
remaining net revenue realized for the preceding month from
the sale of candy, grooming and hygiene products, and soft
drinks that had been taxed at a rate of 1% prior to September
1, 2009 but that are now taxed at 6.25%.
Beginning July 1, 2013, each month the Department shall
pay into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service Use Tax
Act, and the Retailers' Occupation Tax Act an amount equal to

HB4071 - 72 - LRB103 32235 HLH 61432 b
the average monthly deficit in the Underground Storage Tank
Fund during the prior year, as certified annually by the
Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Use Tax Act, the Service Use Tax Act, and the Retailers'
Occupation Tax Act shall not exceed $18,000,000 in any State
fiscal year. As used in this paragraph, the "average monthly
deficit" shall be equal to the difference between the average
monthly claims for payment by the fund and the average monthly
revenues deposited into the fund, excluding payments made
pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, the Service
Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
each month the Department shall deposit $500,000 into the
State Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the

HB4071 - 73 - LRB103 32235 HLH 61432 b
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Account in
the Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the

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

HB4071 - 75 - LRB103 32235 HLH 61432 b
Department pursuant to this Act and required to be deposited
into the Build Illinois Fund are subject to the pledge, claim
and charge set forth in Section 12 of the Build Illinois Bond
Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000

HB4071 - 76 - LRB103 32235 HLH 61432 b
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 300,000,000
2022 300,000,000
2023 300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000

HB4071 - 77 - LRB103 32235 HLH 61432 b
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034 375,000,000
2035 375,000,000
2036 450,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits

HB4071 - 78 - LRB103 32235 HLH 61432 b
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects
Fund, the Build Illinois Fund, and the McCormick Place
Expansion Project Fund pursuant to the preceding paragraphs or
in any amendments thereto hereafter enacted, for aviation fuel
sold on or after December 1, 2019, the Department shall each
month deposit into the Aviation Fuel Sales Tax Refund Fund an
amount estimated by the Department to be required for refunds
of the 80% portion of the tax on aviation fuel under this Act.
The Department shall only deposit moneys into the Aviation
Fuel Sales Tax Refund Fund under this paragraph for so long as
the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois
Tax Increment Fund 0.27% of 80% of the remaining net revenue
realized for the preceding month from the 6.25% general rate
on the selling price of tangible personal property.
Subject to payment of amounts into the Build Illinois Fund

HB4071 - 79 - LRB103 32235 HLH 61432 b
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a
25-year period, the Department shall each month pay into the
Energy Infrastructure Fund 80% of the remaining net revenue
realized from the 6.25% general rate on the selling price of
Illinois-mined coal that was sold to an eligible business. For
purposes of this paragraph, the term "eligible business" means
a new electric generating facility certified pursuant to
Section 605-332 of the Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, and the Energy Infrastructure Fund
pursuant to the preceding paragraphs or in any amendments to
this Section hereafter enacted, beginning on the first day of
the first calendar month to occur on or after August 26, 2014
(the effective date of Public Act 98-1098), each month, from
the collections made under Section 9 of the Use Tax Act,
Section 9 of the Service Use Tax Act, Section 9 of the Service
Occupation Tax Act, and Section 3 of the Retailers' Occupation
Tax Act, the Department shall pay into the Tax Compliance and
Administration Fund, to be used, subject to appropriation, to
fund additional auditors and compliance personnel at the
Department of Revenue, an amount equal to 1/12 of 5% of 80% of

HB4071 - 80 - LRB103 32235 HLH 61432 b
the cash receipts collected during the preceding fiscal year
by the Audit Bureau of the Department under the Use Tax Act,
the Service Use Tax Act, the Service Occupation Tax Act, the
Retailers' Occupation Tax Act, and associated local occupation
and use taxes administered by the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, the Energy Infrastructure Fund, and the
Tax Compliance and Administration Fund as provided in this
Section, beginning on July 1, 2018 the Department shall pay
each month into the Downstate Public Transportation Fund the
moneys required to be so paid under Section 2-3 of the
Downstate Public Transportation Act.
Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and

HB4071 - 81 - LRB103 32235 HLH 61432 b
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year............................Total Deposit
2024....................................$200,000,000
2025....................................$206,000,000
2026....................................$212,200,000
2027....................................$218,500,000
2028....................................$225,100,000
2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000
2034....................................$341,200,000
2035....................................$351,400,000
2036....................................$361,900,000
2037....................................$372,800,000
2038....................................$384,000,000
2039....................................$395,500,000
2040....................................$407,400,000

HB4071 - 82 - LRB103 32235 HLH 61432 b
2041....................................$419,600,000
2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the County and Mass Transit
District Fund, the Local Government Tax Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, the Energy Infrastructure Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 16% of the
remaining net revenue realized from the taxes imposed on motor
fuel and gasohol. Beginning July 1, 2022 and until July 1,
2023, subject to the payment of amounts into the County and
Mass Transit District Fund, the Local Government Tax Fund, the
Build Illinois Fund, the McCormick Place Expansion Project
Fund, the Illinois Tax Increment Fund, the Energy
Infrastructure Fund, and the Tax Compliance and Administration
Fund as provided in this Section, the Department shall pay
each month into the Road Fund the amount estimated to
represent 32% of the remaining net revenue realized from the
taxes imposed on motor fuel and gasohol. Beginning July 1,
2023 and until July 1, 2024, subject to the payment of amounts
into the County and Mass Transit District Fund, the Local
Government Tax Fund, the Build Illinois Fund, the McCormick
Place Expansion Project Fund, the Illinois Tax Increment Fund,

HB4071 - 83 - LRB103 32235 HLH 61432 b
the Energy Infrastructure Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 48% of the remaining net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2024 and until July 1, 2025, subject to the
payment of amounts into the County and Mass Transit District
Fund, the Local Government Tax Fund, the Build Illinois Fund,
the McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, the Energy Infrastructure Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 64% of the remaining
net revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning on July 1, 2025, subject to the payment of
amounts into the County and Mass Transit District Fund, the
Local Government Tax Fund, the Build Illinois Fund, the
McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, the Energy Infrastructure Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 80% of the remaining
net revenue realized from the taxes imposed on motor fuel and
gasohol. As used in this paragraph "motor fuel" has the
meaning given to that term in Section 1.1 of the Motor Fuel Tax
Law, and "gasohol" has the meaning given to that term in

HB4071 - 84 - LRB103 32235 HLH 61432 b
Section 3-40 of the Use Tax Act.
Of the remainder of the moneys received by the Department
pursuant to this Act, 75% shall be paid into the General
Revenue Fund of the State Treasury and 25% shall be reserved in
a special account and used only for the transfer to the Common
School Fund as part of the monthly transfer from the General
Revenue Fund in accordance with Section 8a of the State
Finance Act.
The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.
Such annual return to the Department shall include a statement
of gross receipts as shown by the taxpayer's last Federal
income tax return. If the total receipts of the business as
reported in the Federal income tax return do not agree with the
gross receipts reported to the Department of Revenue for the
same period, the taxpayer shall attach to his annual return a
schedule showing a reconciliation of the 2 amounts and the
reasons for the difference. The taxpayer's annual return to
the Department shall also disclose the cost of goods sold by
the taxpayer during the year covered by such return, opening
and closing inventories of such goods for such year, cost of
goods used from stock or taken from stock and given away by the
taxpayer during such year, pay roll information of the

HB4071 - 85 - LRB103 32235 HLH 61432 b
taxpayer's business during such year and any additional
reasonable information which the Department deems would be
helpful in determining the accuracy of the monthly, quarterly
or annual returns filed by such taxpayer as hereinbefore
provided for in this Section.
If the annual information return required by this Section
is not filed when and as required, the taxpayer shall be liable
as follows:
(i) Until January 1, 1994, the taxpayer shall be
liable for a penalty equal to 1/6 of 1% of the tax due from
such taxpayer under this Act during the period to be
covered by the annual return for each month or fraction of
a month until such return is filed as required, the
penalty to be assessed and collected in the same manner as
any other penalty provided for in this Act.
(ii) On and after January 1, 1994, the taxpayer shall
be liable for a penalty as described in Section 3-4 of the
Uniform Penalty and Interest Act.
The chief executive officer, proprietor, owner or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person who
willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and punished
accordingly. The annual return form prescribed by the
Department shall include a warning that the person signing the
return may be liable for perjury.

HB4071 - 86 - LRB103 32235 HLH 61432 b
The foregoing portion of this Section concerning the
filing of an annual information return shall not apply to a
serviceman who is not required to file an income tax return
with the United States Government.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the remaining net revenue realized
under this Act for the second preceding month. Beginning April
1, 2000, this transfer is no longer required and shall not be
made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability. Remaining net revenue means net
revenue minus any amount paid into the Working Families Fund
pursuant to this Section.
For greater simplicity of administration, it shall be
permissible for manufacturers, importers and wholesalers whose
products are sold by numerous servicemen in Illinois, and who
wish to do so, to assume the responsibility for accounting and
paying to the Department all tax accruing under this Act with
respect to such sales, if the servicemen who are affected do
not make written objection to the Department to this
arrangement.

HB4071 - 87 - LRB103 32235 HLH 61432 b
(Source: P.A. 101-10, Article 15, Section 15-20, eff. 6-5-19;
101-10, Article 25, Section 25-115, eff. 6-5-19; 101-27, eff.
6-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19;
101-636, eff. 6-10-20; 102-700, eff. 4-19-22.)
Section 25. The Retailers' Occupation Tax Act is amended
by changing Section 3 as follows:
(35 ILCS 120/3) (from Ch. 120, par. 442)
Sec. 3. Except as provided in this Section, on or before
the twentieth day of each calendar month, every person engaged
in the business of selling tangible personal property at
retail in this State during the preceding calendar month shall
file a return with the Department, stating:
1. The name of the seller;
2. His residence address and the address of his
principal place of business and the address of the
principal place of business (if that is a different
address) from which he engages in the business of selling
tangible personal property at retail in this State;
3. Total amount of receipts received by him during the
preceding calendar month or quarter, as the case may be,
from sales of tangible personal property, and from
services furnished, by him during such preceding calendar
month or quarter;
4. Total amount received by him during the preceding

HB4071 - 88 - LRB103 32235 HLH 61432 b
calendar month or quarter on charge and time sales of
tangible personal property, and from services furnished,
by him prior to the month or quarter for which the return
is filed;
5. Deductions allowed by law;
6. Gross receipts which were received by him during
the preceding calendar month or quarter and upon the basis
of which the tax is imposed, including gross receipts on
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
food consisting of or infused with adult use cannabis,
soft drinks, and food that has been prepared for immediate
consumption) which were received during the preceding
calendar month or quarter and upon which tax would have
been due but for the 0% rate imposed under Public Act
102-700 this amendatory Act of the 102nd General Assembly;
7. The amount of credit provided in Section 2d of this
Act;
8. The amount of tax due, including the amount of tax
that would have been due on food for human consumption
that is to be consumed off the premises where it is sold
(other than alcoholic beverages, food consisting of or
infused with adult use cannabis, soft drinks, and food
that has been prepared for immediate consumption) but for
the 0% rate imposed under Public Act 102-700 this
amendatory Act of the 102nd General Assembly;

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9. The signature of the taxpayer; and
10. Such other reasonable information as the
Department may require.
On and after January 1, 2018, except for returns required
to be filed prior to January 1, 2023 for motor vehicles,
watercraft, aircraft, and trailers that are required to be
registered with an agency of this State, with respect to
retailers whose annual gross receipts average $20,000 or more,
all returns required to be filed pursuant to this Act shall be
filed electronically. On and after January 1, 2023, with
respect to retailers whose annual gross receipts average
$20,000 or more, all returns required to be filed pursuant to
this Act, including, but not limited to, returns for motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State, shall be filed
electronically. Retailers who demonstrate that they do not
have access to the Internet or demonstrate hardship in filing
electronically may petition the Department to waive the
electronic filing requirement.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Each return shall be accompanied by the statement of
prepaid tax issued pursuant to Section 2e for which credit is
claimed.

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Prior to October 1, 2003, and on and after September 1,
2004 a retailer may accept a Manufacturer's Purchase Credit
certification from a purchaser in satisfaction of Use Tax as
provided in Section 3-85 of the Use Tax Act if the purchaser
provides the appropriate documentation as required by Section
3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
certification, accepted by a retailer prior to October 1, 2003
and on and after September 1, 2004 as provided in Section 3-85
of the Use Tax Act, may be used by that retailer to satisfy
Retailers' Occupation Tax liability in the amount claimed in
the certification, not to exceed 6.25% of the receipts subject
to tax from a qualifying purchase. A Manufacturer's Purchase
Credit reported on any original or amended return filed under
this Act after October 20, 2003 for reporting periods prior to
September 1, 2004 shall be disallowed. Manufacturer's Purchase
Credit reported on annual returns due on or after January 1,
2005 will be disallowed for periods prior to September 1,
2004. No Manufacturer's Purchase Credit may be used after
September 30, 2003 through August 31, 2004 to satisfy any tax
liability imposed under this Act, including any audit
liability.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each

HB4071 - 91 - LRB103 32235 HLH 61432 b
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in the business of selling tangible
personal property at retail in this State;
3. The total amount of taxable receipts received by
him during the preceding calendar month from sales of
tangible personal property by him during such preceding
calendar month, including receipts from charge and time
sales, but less all deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due; and
6. Such other reasonable information as the Department
may require.
Every person engaged in the business of selling aviation
fuel at retail in this State during the preceding calendar
month shall, instead of reporting and paying tax as otherwise
required by this Section, report and pay such tax on a separate
aviation fuel tax return. The requirements related to the
return shall be as otherwise provided in this Section.
Notwithstanding any other provisions of this Act to the
contrary, retailers selling aviation fuel shall file all
aviation fuel tax returns and shall make all aviation fuel tax
payments by electronic means in the manner and form required

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by the Department. For purposes of this Section, "aviation
fuel" means jet fuel and aviation gasoline.
Beginning on October 1, 2003, any person who is not a
licensed distributor, importing distributor, or manufacturer,
as defined in the Liquor Control Act of 1934, but is engaged in
the business of selling, at retail, alcoholic liquor shall
file a statement with the Department of Revenue, in a format
and at a time prescribed by the Department, showing the total
amount paid for alcoholic liquor purchased during the
preceding month and such other information as is reasonably
required by the Department. The Department may adopt rules to
require that this statement be filed in an electronic or
telephonic format. Such rules may provide for exceptions from
the filing requirements of this paragraph. For the purposes of
this paragraph, the term "alcoholic liquor" shall have the
meaning prescribed in the Liquor Control Act of 1934.
Beginning on October 1, 2003, every distributor, importing
distributor, and manufacturer of alcoholic liquor as defined
in the Liquor Control Act of 1934, shall file a statement with
the Department of Revenue, no later than the 10th day of the
month for the preceding month during which transactions
occurred, by electronic means, showing the total amount of
gross receipts from the sale of alcoholic liquor sold or
distributed during the preceding month to purchasers;
identifying the purchaser to whom it was sold or distributed;
the purchaser's tax registration number; and such other

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information reasonably required by the Department. A
distributor, importing distributor, or manufacturer of
alcoholic liquor must personally deliver, mail, or provide by
electronic means to each retailer listed on the monthly
statement a report containing a cumulative total of that
distributor's, importing distributor's, or manufacturer's
total sales of alcoholic liquor to that retailer no later than
the 10th day of the month for the preceding month during which
the transaction occurred. The distributor, importing
distributor, or manufacturer shall notify the retailer as to
the method by which the distributor, importing distributor, or
manufacturer will provide the sales information. If the
retailer is unable to receive the sales information by
electronic means, the distributor, importing distributor, or
manufacturer shall furnish the sales information by personal
delivery or by mail. For purposes of this paragraph, the term
"electronic means" includes, but is not limited to, the use of
a secure Internet website, e-mail, or facsimile.
If a total amount of less than $1 is payable, refundable or
creditable, such amount shall be disregarded if it is less
than 50 cents and shall be increased to $1 if it is 50 cents or
more.
Notwithstanding any other provision of this Act to the
contrary, retailers subject to tax on cannabis shall file all
cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the

HB4071 - 94 - LRB103 32235 HLH 61432 b
Department.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall
make all payments required by rules of the Department by
electronic funds transfer. Beginning October 1, 1995, a
taxpayer who has an average monthly tax liability of $50,000
or more shall make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1,
2000, a taxpayer who has an annual tax liability of $200,000 or
more shall make all payments required by rules of the
Department by electronic funds transfer. The term "annual tax
liability" shall be the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year. The term "average monthly
tax liability" shall be the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year divided by 12. Beginning
on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the
Department of Revenue Law shall make all payments required by
rules of the Department by electronic funds transfer.

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Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make
payments by electronic funds transfer. All taxpayers required
to make payments by electronic funds transfer shall make those
payments for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those
payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
Any amount which is required to be shown or reported on any
return or other document under this Act shall, if such amount
is not a whole-dollar amount, be increased to the nearest
whole-dollar amount in any case where the fractional part of a
dollar is 50 cents or more, and decreased to the nearest
whole-dollar amount where the fractional part of a dollar is
less than 50 cents.
If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,

HB4071 - 96 - LRB103 32235 HLH 61432 b
with the return for January, February and March of a given year
being due by April 20 of such year; with the return for April,
May and June of a given year being due by July 20 of such year;
with the return for July, August and September of a given year
being due by October 20 of such year, and with the return for
October, November and December of a given year being due by
January 20 of the following year.
If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
liability with the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January 20
of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act concerning
the time within which a retailer may file his return, in the
case of any retailer who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such retailer shall file a final return under this Act with the
Department not more than one month after discontinuing such
business.
Where the same person has more than one business
registered with the Department under separate registrations
under this Act, such person may not file each return that is

HB4071 - 97 - LRB103 32235 HLH 61432 b
due as a single return covering all such registered
businesses, but shall file separate returns for each such
registered business.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, except as otherwise provided in this
Section, every retailer selling this kind of tangible personal
property shall file, with the Department, upon a form to be
prescribed and supplied by the Department, a separate return
for each such item of tangible personal property which the
retailer sells, except that if, in the same transaction, (i) a
retailer of aircraft, watercraft, motor vehicles or trailers
transfers more than one aircraft, watercraft, motor vehicle or
trailer to another aircraft, watercraft, motor vehicle
retailer or trailer retailer for the purpose of resale or (ii)
a retailer of aircraft, watercraft, motor vehicles, or
trailers transfers more than one aircraft, watercraft, motor
vehicle, or trailer to a purchaser for use as a qualifying
rolling stock as provided in Section 2-5 of this Act, then that
seller may report the transfer of all aircraft, watercraft,
motor vehicles or trailers involved in that transaction to the
Department on the same uniform invoice-transaction reporting
return form. For purposes of this Section, "watercraft" means
a Class 2, Class 3, or Class 4 watercraft as defined in Section
3-2 of the Boat Registration and Safety Act, a personal
watercraft, or any boat equipped with an inboard motor.

HB4071 - 98 - LRB103 32235 HLH 61432 b
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, every person who is engaged in the
business of leasing or renting such items and who, in
connection with such business, sells any such item to a
retailer for the purpose of resale is, notwithstanding any
other provision of this Section to the contrary, authorized to
meet the return-filing requirement of this Act by reporting
the transfer of all the aircraft, watercraft, motor vehicles,
or trailers transferred for resale during a month to the
Department on the same uniform invoice-transaction reporting
return form on or before the 20th of the month following the
month in which the transfer takes place. Notwithstanding any
other provision of this Act to the contrary, all returns filed
under this paragraph must be filed by electronic means in the
manner and form as required by the Department.
Any retailer who sells only motor vehicles, watercraft,
aircraft, or trailers that are required to be registered with
an agency of this State, so that all retailers' occupation tax
liability is required to be reported, and is reported, on such
transaction reporting returns and who is not otherwise
required to file monthly or quarterly returns, need not file
monthly or quarterly returns. However, those retailers shall
be required to file returns on an annual basis.
The transaction reporting return, in the case of motor
vehicles or trailers that are required to be registered with

HB4071 - 99 - LRB103 32235 HLH 61432 b
an agency of this State, shall be the same document as the
Uniform Invoice referred to in Section 5-402 of the Illinois
Vehicle Code and must show the name and address of the seller;
the name and address of the purchaser; the amount of the
selling price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 1 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling
price; the amount of tax due from the retailer with respect to
such transaction; the amount of tax collected from the
purchaser by the retailer on such transaction (or satisfactory
evidence that such tax is not due in that particular instance,
if that is claimed to be the fact); the place and date of the
sale; a sufficient identification of the property sold; such
other information as is required in Section 5-402 of the
Illinois Vehicle Code, and such other information as the
Department may reasonably require.
The transaction reporting return in the case of watercraft
or aircraft must show the name and address of the seller; the
name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 1 of this Act allows an exemption for

HB4071 - 100 - LRB103 32235 HLH 61432 b
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling
price; the amount of tax due from the retailer with respect to
such transaction; the amount of tax collected from the
purchaser by the retailer on such transaction (or satisfactory
evidence that such tax is not due in that particular instance,
if that is claimed to be the fact); the place and date of the
sale, a sufficient identification of the property sold, and
such other information as the Department may reasonably
require.
Such transaction reporting return shall be filed not later
than 20 days after the day of delivery of the item that is
being sold, but may be filed by the retailer at any time sooner
than that if he chooses to do so. The transaction reporting
return and tax remittance or proof of exemption from the
Illinois use tax may be transmitted to the Department by way of
the State agency with which, or State officer with whom the
tangible personal property must be titled or registered (if
titling or registration is required) if the Department and
such agency or State officer determine that this procedure
will expedite the processing of applications for title or
registration.
With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the

HB4071 - 101 - LRB103 32235 HLH 61432 b
Department shall issue, in the purchaser's name, a use tax
receipt (or a certificate of exemption if the Department is
satisfied that the particular sale is tax exempt) which such
purchaser may submit to the agency with which, or State
officer with whom, he must title or register the tangible
personal property that is involved (if titling or registration
is required) in support of such purchaser's application for an
Illinois certificate or other evidence of title or
registration to such tangible personal property.
No retailer's failure or refusal to remit tax under this
Act precludes a user, who has paid the proper tax to the
retailer, from obtaining his certificate of title or other
evidence of title or registration (if titling or registration
is required) upon satisfying the Department that such user has
paid the proper tax (if tax is due) to the retailer. The
Department shall adopt appropriate rules to carry out the
mandate of this paragraph.
If the user who would otherwise pay tax to the retailer
wants the transaction reporting return filed and the payment
of the tax or proof of exemption made to the Department before
the retailer is willing to take these actions and such user has
not paid the tax to the retailer, such user may certify to the
fact of such delay by the retailer and may (upon the Department
being satisfied of the truth of such certification) transmit
the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to

HB4071 - 102 - LRB103 32235 HLH 61432 b
the Department and obtain his tax receipt or exemption
determination, in which event the transaction reporting return
and tax remittance (if a tax payment was required) shall be
credited by the Department to the proper retailer's account
with the Department, but without the vendor's 2.1% or 1.75%
discount provided for in this Section being allowed. When the
user pays the tax directly to the Department, he shall pay the
tax in the same amount and in the same form in which it would
be remitted if the tax had been remitted to the Department by
the retailer.
Refunds made by the seller during the preceding return
period to purchasers, on account of tangible personal property
returned to the seller, shall be allowed as a deduction under
subdivision 5 of his monthly or quarterly return, as the case
may be, in case the seller had theretofore included the
receipts from the sale of such tangible personal property in a
return filed by him and had paid the tax imposed by this Act
with respect to such receipts.
Where the seller is a corporation, the return filed on
behalf of such corporation shall be signed by the president,
vice-president, secretary or treasurer or by the properly
accredited agent of such corporation.
Where the seller is a limited liability company, the
return filed on behalf of the limited liability company shall
be signed by a manager, member, or properly accredited agent
of the limited liability company.

HB4071 - 103 - LRB103 32235 HLH 61432 b
Except as provided in this Section, the retailer filing
the return under this Section shall, at the time of filing such
return, pay to the Department the amount of tax imposed by this
Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
on and after January 1, 1990 and prior to January 1, 2024, and
2% on and after January 1, 2024,, or $5 per calendar year,
whichever is greater, which is allowed to reimburse the
retailer for the expenses incurred in keeping records,
preparing and filing returns, remitting the tax and supplying
data to the Department on request. On and after January 1, 1990
and prior to January 1, 2024, in no event shall the discount
allowed to any vendor be less than $5 in any calendar year. On
and after January 1, 2024, in no event shall the discount
allowed to any vendor be less than $5 in any calendar year or
more than $1,000 in any calendar year. On and after January 1,
2021, a certified service provider, as defined in the Leveling
the Playing Field for Illinois Retail Act, filing the return
under this Section on behalf of a remote retailer shall, at the
time of such return, pay to the Department the amount of tax
imposed by this Act less a discount of 1.75%. A remote retailer
using a certified service provider to file a return on its
behalf, as provided in the Leveling the Playing Field for
Illinois Retail Act, is not eligible for the discount. When
determining the discount allowed under this Section, retailers
shall include the amount of tax that would have been due at the
1% rate but for the 0% rate imposed under Public Act 102-700

HB4071 - 104 - LRB103 32235 HLH 61432 b
this amendatory Act of the 102nd General Assembly. When
determining the discount allowed under this Section, retailers
shall include the amount of tax that would have been due at the
6.25% rate but for the 1.25% rate imposed on sales tax holiday
items under Public Act 102-700 this amendatory Act of the
102nd General Assembly. The discount under this Section is not
allowed for the 1.25% portion of taxes paid on aviation fuel
that is subject to the revenue use requirements of 49 U.S.C.
47107(b) and 49 U.S.C. 47133. Any prepayment made pursuant to
Section 2d of this Act shall be included in the amount on which
such 2.1% or 1.75% discount is computed. In the case of
retailers who report and pay the tax on a transaction by
transaction basis, as provided in this Section, such discount
shall be taken with each such tax remittance instead of when
such retailer files his periodic return. The discount allowed
under this Section is allowed only for returns that are filed
in the manner required by this Act. The Department may
disallow the discount for retailers whose certificate of
registration is revoked at the time the return is filed, but
only if the Department's decision to revoke the certificate of
registration has become final.
Before October 1, 2000, if the taxpayer's average monthly
tax liability to the Department under this Act, the Use Tax
Act, the Service Occupation Tax Act, and the Service Use Tax
Act, excluding any liability for prepaid sales tax to be
remitted in accordance with Section 2d of this Act, was

HB4071 - 105 - LRB103 32235 HLH 61432 b
$10,000 or more during the preceding 4 complete calendar
quarters, he shall file a return with the Department each
month by the 20th day of the month next following the month
during which such tax liability is incurred and shall make
payments to the Department on or before the 7th, 15th, 22nd and
last day of the month during which such liability is incurred.
On and after October 1, 2000, if the taxpayer's average
monthly tax liability to the Department under this Act, the
Use Tax Act, the Service Occupation Tax Act, and the Service
Use Tax Act, excluding any liability for prepaid sales tax to
be remitted in accordance with Section 2d of this Act, was
$20,000 or more during the preceding 4 complete calendar
quarters, he shall file a return with the Department each
month by the 20th day of the month next following the month
during which such tax liability is incurred and shall make
payment to the Department on or before the 7th, 15th, 22nd and
last day of the month during which such liability is incurred.
If the month during which such tax liability is incurred began
prior to January 1, 1985, each payment shall be in an amount
equal to 1/4 of the taxpayer's actual liability for the month
or an amount set by the Department not to exceed 1/4 of the
average monthly liability of the taxpayer to the Department
for the preceding 4 complete calendar quarters (excluding the
month of highest liability and the month of lowest liability
in such 4 quarter period). If the month during which such tax
liability is incurred begins on or after January 1, 1985 and

HB4071 - 106 - LRB103 32235 HLH 61432 b
prior to January 1, 1987, each payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the
month or 27.5% of the taxpayer's liability for the same
calendar month of the preceding year. If the month during
which such tax liability is incurred begins on or after
January 1, 1987 and prior to January 1, 1988, each payment
shall be in an amount equal to 22.5% of the taxpayer's actual
liability for the month or 26.25% of the taxpayer's liability
for the same calendar month of the preceding year. If the month
during which such tax liability is incurred begins on or after
January 1, 1988, and prior to January 1, 1989, or begins on or
after January 1, 1996, each payment shall be in an amount equal
to 22.5% of the taxpayer's actual liability for the month or
25% of the taxpayer's liability for the same calendar month of
the preceding year. If the month during which such tax
liability is incurred begins on or after January 1, 1989, and
prior to January 1, 1996, each payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the
month or 25% of the taxpayer's liability for the same calendar
month of the preceding year or 100% of the taxpayer's actual
liability for the quarter monthly reporting period. The amount
of such quarter monthly payments shall be credited against the
final tax liability of the taxpayer's return for that month.
Before October 1, 2000, once applicable, the requirement of
the making of quarter monthly payments to the Department by
taxpayers having an average monthly tax liability of $10,000

HB4071 - 107 - LRB103 32235 HLH 61432 b
or more as determined in the manner provided above shall
continue until such taxpayer's average monthly liability to
the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the
month of lowest liability) is less than $9,000, or until such
taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $10,000. However, if a
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $10,000
threshold stated above, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status.
On and after October 1, 2000, once applicable, the requirement
of the making of quarter monthly payments to the Department by
taxpayers having an average monthly tax liability of $20,000
or more as determined in the manner provided above shall
continue until such taxpayer's average monthly liability to
the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the
month of lowest liability) is less than $19,000 or until such
taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $20,000. However, if a
taxpayer can show the Department that a substantial change in

HB4071 - 108 - LRB103 32235 HLH 61432 b
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $20,000
threshold stated above, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status.
The Department shall change such taxpayer's reporting status
unless it finds that such change is seasonal in nature and not
likely to be long term. Quarter monthly payment status shall
be determined under this paragraph as if the rate reduction to
0% in Public Act 102-700 this amendatory Act of the 102nd
General Assembly on food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption) had not occurred. For quarter monthly
payments due under this paragraph on or after July 1, 2023 and
through June 30, 2024, "25% of the taxpayer's liability for
the same calendar month of the preceding year" shall be
determined as if the rate reduction to 0% in Public Act 102-700
this amendatory Act of the 102nd General Assembly had not
occurred. Quarter monthly payment status shall be determined
under this paragraph as if the rate reduction to 1.25% in
Public Act 102-700 this amendatory Act of the 102nd General
Assembly on sales tax holiday items had not occurred. For
quarter monthly payments due on or after July 1, 2023 and
through June 30, 2024, "25% of the taxpayer's liability for

HB4071 - 109 - LRB103 32235 HLH 61432 b
the same calendar month of the preceding year" shall be
determined as if the rate reduction to 1.25% in Public Act
102-700 this amendatory Act of the 102nd General Assembly on
sales tax holiday items had not occurred. If any such quarter
monthly payment is not paid at the time or in the amount
required by this Section, then the taxpayer shall be liable
for penalties and interest on the difference between the
minimum amount due as a payment and the amount of such quarter
monthly payment actually and timely paid, except insofar as
the taxpayer has previously made payments for that month to
the Department in excess of the minimum payments previously
due as provided in this Section. The Department shall make
reasonable rules and regulations to govern the quarter monthly
payment amount and quarter monthly payment dates for taxpayers
who file on other than a calendar monthly basis.
The provisions of this paragraph apply before October 1,
2001. Without regard to whether a taxpayer is required to make
quarter monthly payments as specified above, any taxpayer who
is required by Section 2d of this Act to collect and remit
prepaid taxes and has collected prepaid taxes which average in
excess of $25,000 per month during the preceding 2 complete
calendar quarters, shall file a return with the Department as
required by Section 2f and shall make payments to the
Department on or before the 7th, 15th, 22nd and last day of the
month during which such liability is incurred. If the month
during which such tax liability is incurred began prior to

HB4071 - 110 - LRB103 32235 HLH 61432 b
September 1, 1985 (the effective date of Public Act 84-221),
each payment shall be in an amount not less than 22.5% of the
taxpayer's actual liability under Section 2d. If the month
during which such tax liability is incurred begins on or after
January 1, 1986, each payment shall be in an amount equal to
22.5% of the taxpayer's actual liability for the month or
27.5% of the taxpayer's liability for the same calendar month
of the preceding calendar year. If the month during which such
tax liability is incurred begins on or after January 1, 1987,
each payment shall be in an amount equal to 22.5% of the
taxpayer's actual liability for the month or 26.25% of the
taxpayer's liability for the same calendar month of the
preceding year. The amount of such quarter monthly payments
shall be credited against the final tax liability of the
taxpayer's return for that month filed under this Section or
Section 2f, as the case may be. Once applicable, the
requirement of the making of quarter monthly payments to the
Department pursuant to this paragraph shall continue until
such taxpayer's average monthly prepaid tax collections during
the preceding 2 complete calendar quarters is $25,000 or less.
If any such quarter monthly payment is not paid at the time or
in the amount required, the taxpayer shall be liable for
penalties and interest on such difference, except insofar as
the taxpayer has previously made payments for that month in
excess of the minimum payments previously due.
The provisions of this paragraph apply on and after

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October 1, 2001. Without regard to whether a taxpayer is
required to make quarter monthly payments as specified above,
any taxpayer who is required by Section 2d of this Act to
collect and remit prepaid taxes and has collected prepaid
taxes that average in excess of $20,000 per month during the
preceding 4 complete calendar quarters shall file a return
with the Department as required by Section 2f and shall make
payments to the Department on or before the 7th, 15th, 22nd and
last day of the month during which the liability is incurred.
Each payment shall be in an amount equal to 22.5% of the
taxpayer's actual liability for the month or 25% of the
taxpayer's liability for the same calendar month of the
preceding year. The amount of the quarter monthly payments
shall be credited against the final tax liability of the
taxpayer's return for that month filed under this Section or
Section 2f, as the case may be. Once applicable, the
requirement of the making of quarter monthly payments to the
Department pursuant to this paragraph shall continue until the
taxpayer's average monthly prepaid tax collections during the
preceding 4 complete calendar quarters (excluding the month of
highest liability and the month of lowest liability) is less
than $19,000 or until such taxpayer's average monthly
liability to the Department as computed for each calendar
quarter of the 4 preceding complete calendar quarters is less
than $20,000. If any such quarter monthly payment is not paid
at the time or in the amount required, the taxpayer shall be

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liable for penalties and interest on such difference, except
insofar as the taxpayer has previously made payments for that
month in excess of the minimum payments previously due.
If any payment provided for in this Section exceeds the
taxpayer's liabilities under this Act, the Use Tax Act, the
Service Occupation Tax Act and the Service Use Tax Act, as
shown on an original monthly return, the Department shall, if
requested by the taxpayer, issue to the taxpayer a credit
memorandum no later than 30 days after the date of payment. The
credit evidenced by such credit memorandum may be assigned by
the taxpayer to a similar taxpayer under this Act, the Use Tax
Act, the Service Occupation Tax Act or the Service Use Tax Act,
in accordance with reasonable rules and regulations to be
prescribed by the Department. If no such request is made, the
taxpayer may credit such excess payment against tax liability
subsequently to be remitted to the Department under this Act,
the Use Tax Act, the Service Occupation Tax Act or the Service
Use Tax Act, in accordance with reasonable rules and
regulations prescribed by the Department. If the Department
subsequently determined that all or any part of the credit
taken was not actually due to the taxpayer, the taxpayer's
2.1% and 1.75% vendor's discount shall be reduced by 2.1% or
1.75% of the difference between the credit taken and that
actually due, and that taxpayer shall be liable for penalties
and interest on such difference.
If a retailer of motor fuel is entitled to a credit under

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Section 2d of this Act which exceeds the taxpayer's liability
to the Department under this Act for the month for which the
taxpayer is filing a return, the Department shall issue the
taxpayer a credit memorandum for the excess.
Beginning February 1, 2024, each month the Department
shall pay into the Working Families Fund an amount equal to any
net revenue realized for the preceding month as a result of the
limit on the vendor's discount of $1,000 annually, net of the
difference between 1.75% and the vendor's discount of 2%.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund, a special fund in the
State treasury which is hereby created, the remaining net
revenue realized for the preceding month from the 1% tax
imposed under this Act.
Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund, a special
fund in the State treasury which is hereby created, 4% of the
remaining net revenue realized for the preceding month from
the 6.25% general rate other than aviation fuel sold on or
after December 1, 2019. This exception for aviation fuel only
applies for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the County and Mass Transit District Fund 20% of the
remaining net revenue realized for the preceding month from
the 1.25% rate on the selling price of motor fuel and gasohol.

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If, in any month, the tax on sales tax holiday items, as
defined in Section 2-8, is imposed at the rate of 1.25%, then
the Department shall pay 20% of the remaining net revenue
realized for that month from the 1.25% rate on the selling
price of sales tax holiday items into the County and Mass
Transit District Fund.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the remaining net
revenue realized for the preceding month from the 6.25%
general rate on the selling price of tangible personal
property other than aviation fuel sold on or after December 1,
2019. This exception for aviation fuel only applies for so
long as the revenue use requirements of 49 U.S.C. 47107(b) and
49 U.S.C. 47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the remaining net revenue realized for the
preceding month from the 6.25% general rate on the selling
price of aviation fuel, less an amount estimated by the
Department to be required for refunds of the 20% portion of the
tax on aviation fuel under this Act, which amount shall be
deposited into the Aviation Fuel Sales Tax Refund Fund. The
Department shall only pay moneys into the State Aviation
Program Fund and the Aviation Fuel Sales Tax Refund Fund under
this Act for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.

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Beginning August 1, 2000, each month the Department shall
pay into the Local Government Tax Fund 80% of the remaining net
revenue realized for the preceding month from the 1.25% rate
on the selling price of motor fuel and gasohol. If, in any
month, the tax on sales tax holiday items, as defined in
Section 2-8, is imposed at the rate of 1.25%, then the
Department shall pay 80% of the remaining net revenue realized
for that month from the 1.25% rate on the selling price of
sales tax holiday items into the Local Government Tax Fund.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
remaining net revenue realized for the preceding month from
the sale of candy, grooming and hygiene products, and soft
drinks that had been taxed at a rate of 1% prior to September
1, 2009 but that are now taxed at 6.25%.
Beginning July 1, 2011, each month the Department shall
pay into the Clean Air Act Permit Fund 80% of the remaining net
revenue realized for the preceding month from the 6.25%
general rate on the selling price of sorbents used in Illinois
in the process of sorbent injection as used to comply with the
Environmental Protection Act or the federal Clean Air Act, but
the total payment into the Clean Air Act Permit Fund under this
Act and the Use Tax Act shall not exceed $2,000,000 in any
fiscal year.
Beginning July 1, 2013, each month the Department shall

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pay into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service Use Tax
Act, and the Service Occupation Tax Act an amount equal to the
average monthly deficit in the Underground Storage Tank Fund
during the prior year, as certified annually by the Illinois
Environmental Protection Agency, but the total payment into
the Underground Storage Tank Fund under this Act, the Use Tax
Act, the Service Use Tax Act, and the Service Occupation Tax
Act shall not exceed $18,000,000 in any State fiscal year. As
used in this paragraph, the "average monthly deficit" shall be
equal to the difference between the average monthly claims for
payment by the fund and the average monthly revenues deposited
into the fund, excluding payments made pursuant to this
paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, the Service
Use Tax Act, the Service Occupation Tax Act, and this Act, each
month the Department shall deposit $500,000 into the State
Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required

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to be paid into the Build Illinois Fund pursuant to this Act,
Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
Act, and Section 9 of the Service Occupation Tax Act, such Acts
being hereinafter called the "Tax Acts" and such aggregate of
2.2% or 3.8%, as the case may be, of moneys being hereinafter
called the "Tax Act Amount", and (2) the amount transferred to
the Build Illinois Fund from the State and Local Sales Tax
Reform Fund shall be less than the Annual Specified Amount (as
hereinafter defined), an amount equal to the difference shall
be immediately paid into the Build Illinois Fund from other
moneys received by the Department pursuant to the Tax Acts;
the "Annual Specified Amount" means the amounts specified
below for fiscal years 1986 through 1993:
Fiscal Year Annual Specified Amount
1986 $54,800,000
1987 $76,650,000
1988 $80,480,000
1989 $88,510,000
1990 $115,330,000
1991 $145,470,000
1992 $182,730,000
1993 $206,520,000;
and means the Certified Annual Debt Service Requirement (as
defined in Section 13 of the Build Illinois Bond Act) or the
Tax Act Amount, whichever is greater, for fiscal year 1994 and
each fiscal year thereafter; and further provided, that if on

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the last business day of any month the sum of (1) the Tax Act
Amount required to be deposited into the Build Illinois Bond
Account in the Build Illinois Fund during such month and (2)
the amount transferred to the Build Illinois Fund from the
State and Local Sales Tax Reform Fund shall have been less than
1/12 of the Annual Specified Amount, an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and, further provided, that in no event shall the
payments required under the preceding proviso result in
aggregate payments into the Build Illinois Fund pursuant to
this clause (b) for any fiscal year in excess of the greater of
(i) the Tax Act Amount or (ii) the Annual Specified Amount for
such fiscal year. The amounts payable into the Build Illinois
Fund under clause (b) of the first sentence in this paragraph
shall be payable only until such time as the aggregate amount
on deposit under each trust indenture securing Bonds issued
and outstanding pursuant to the Build Illinois Bond Act is
sufficient, taking into account any future investment income,
to fully provide, in accordance with such indenture, for the
defeasance of or the payment of the principal of, premium, if
any, and interest on the Bonds secured by such indenture and on
any Bonds expected to be issued thereafter and all fees and
costs payable with respect thereto, all as certified by the
Director of the Bureau of the Budget (now Governor's Office of
Management and Budget). If on the last business day of any

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month in which Bonds are outstanding pursuant to the Build
Illinois Bond Act, the aggregate of moneys deposited in the
Build Illinois Bond Account in the Build Illinois Fund in such
month shall be less than the amount required to be transferred
in such month from the Build Illinois Bond Account to the Build
Illinois Bond Retirement and Interest Fund pursuant to Section
13 of the Build Illinois Bond Act, an amount equal to such
deficiency shall be immediately paid from other moneys
received by the Department pursuant to the Tax Acts to the
Build Illinois Fund; provided, however, that any amounts paid
to the Build Illinois Fund in any fiscal year pursuant to this
sentence shall be deemed to constitute payments pursuant to
clause (b) of the first sentence of this paragraph and shall
reduce the amount otherwise payable for such fiscal year
pursuant to that clause (b). The moneys received by the
Department pursuant to this Act and required to be deposited
into the Build Illinois Fund are subject to the pledge, claim
and charge set forth in Section 12 of the Build Illinois Bond
Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of sums designated as "Total Deposit", shall be

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deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000

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2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 300,000,000
2022 300,000,000
2023 300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034 375,000,000
2035 375,000,000
2036 450,000,000
and
each fiscal year

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thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, for aviation fuel sold on or after December 1, 2019,
the Department shall each month deposit into the Aviation Fuel
Sales Tax Refund Fund an amount estimated by the Department to

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be required for refunds of the 80% portion of the tax on
aviation fuel under this Act. The Department shall only
deposit moneys into the Aviation Fuel Sales Tax Refund Fund
under this paragraph for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois
Tax Increment Fund 0.27% of 80% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a
25-year period, the Department shall each month pay into the
Energy Infrastructure Fund 80% of the remaining net revenue
realized from the 6.25% general rate on the selling price of
Illinois-mined coal that was sold to an eligible business. For
purposes of this paragraph, the term "eligible business" means
a new electric generating facility certified pursuant to
Section 605-332 of the Department of Commerce and Economic

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Opportunity Law of the Civil Administrative Code of Illinois.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, and the Energy Infrastructure Fund
pursuant to the preceding paragraphs or in any amendments to
this Section hereafter enacted, beginning on the first day of
the first calendar month to occur on or after August 26, 2014
(the effective date of Public Act 98-1098), each month, from
the collections made under Section 9 of the Use Tax Act,
Section 9 of the Service Use Tax Act, Section 9 of the Service
Occupation Tax Act, and Section 3 of the Retailers' Occupation
Tax Act, the Department shall pay into the Tax Compliance and
Administration Fund, to be used, subject to appropriation, to
fund additional auditors and compliance personnel at the
Department of Revenue, an amount equal to 1/12 of 5% of 80% of
the cash receipts collected during the preceding fiscal year
by the Audit Bureau of the Department under the Use Tax Act,
the Service Use Tax Act, the Service Occupation Tax Act, the
Retailers' Occupation Tax Act, and associated local occupation
and use taxes administered by the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, the Energy Infrastructure Fund, and the
Tax Compliance and Administration Fund as provided in this
Section, beginning on July 1, 2018 the Department shall pay
each month into the Downstate Public Transportation Fund the

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moneys required to be so paid under Section 2-3 of the
Downstate Public Transportation Act.
Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year.............................Total Deposit
2024.....................................$200,000,000
2025....................................$206,000,000

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2026....................................$212,200,000
2027....................................$218,500,000
2028....................................$225,100,000
2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000
2034....................................$341,200,000
2035....................................$351,400,000
2036....................................$361,900,000
2037....................................$372,800,000
2038....................................$384,000,000
2039....................................$395,500,000
2040....................................$407,400,000
2041....................................$419,600,000
2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the County and Mass Transit
District Fund, the Local Government Tax Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, the Energy Infrastructure Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 16% of the

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remaining net revenue realized from the taxes imposed on motor
fuel and gasohol. Beginning July 1, 2022 and until July 1,
2023, subject to the payment of amounts into the County and
Mass Transit District Fund, the Local Government Tax Fund, the
Build Illinois Fund, the McCormick Place Expansion Project
Fund, the Illinois Tax Increment Fund, the Energy
Infrastructure Fund, and the Tax Compliance and Administration
Fund as provided in this Section, the Department shall pay
each month into the Road Fund the amount estimated to
represent 32% of the remaining net revenue realized from the
taxes imposed on motor fuel and gasohol. Beginning July 1,
2023 and until July 1, 2024, subject to the payment of amounts
into the County and Mass Transit District Fund, the Local
Government Tax Fund, the Build Illinois Fund, the McCormick
Place Expansion Project Fund, the Illinois Tax Increment Fund,
the Energy Infrastructure Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 48% of the remaining net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2024 and until July 1, 2025, subject to the
payment of amounts into the County and Mass Transit District
Fund, the Local Government Tax Fund, the Build Illinois Fund,
the McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, the Energy Infrastructure Fund, and the Tax
Compliance and Administration Fund as provided in this

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Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 64% of the remaining
net revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning on July 1, 2025, subject to the payment of
amounts into the County and Mass Transit District Fund, the
Local Government Tax Fund, the Build Illinois Fund, the
McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, the Energy Infrastructure Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 80% of the remaining
net revenue realized from the taxes imposed on motor fuel and
gasohol. As used in this paragraph "motor fuel" has the
meaning given to that term in Section 1.1 of the Motor Fuel Tax
Law, and "gasohol" has the meaning given to that term in
Section 3-40 of the Use Tax Act.
Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the State
treasury Treasury and 25% shall be reserved in a special
account and used only for the transfer to the Common School
Fund as part of the monthly transfer from the General Revenue
Fund in accordance with Section 8a of the State Finance Act.
The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual

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information return for the tax year specified in the notice.
Such annual return to the Department shall include a statement
of gross receipts as shown by the retailer's last Federal
income tax return. If the total receipts of the business as
reported in the Federal income tax return do not agree with the
gross receipts reported to the Department of Revenue for the
same period, the retailer shall attach to his annual return a
schedule showing a reconciliation of the 2 amounts and the
reasons for the difference. The retailer's annual return to
the Department shall also disclose the cost of goods sold by
the retailer during the year covered by such return, opening
and closing inventories of such goods for such year, costs of
goods used from stock or taken from stock and given away by the
retailer during such year, payroll information of the
retailer's business during such year and any additional
reasonable information which the Department deems would be
helpful in determining the accuracy of the monthly, quarterly
or annual returns filed by such retailer as provided for in
this Section.
If the annual information return required by this Section
is not filed when and as required, the taxpayer shall be liable
as follows:
(i) Until January 1, 1994, the taxpayer shall be
liable for a penalty equal to 1/6 of 1% of the tax due from
such taxpayer under this Act during the period to be
covered by the annual return for each month or fraction of

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a month until such return is filed as required, the
penalty to be assessed and collected in the same manner as
any other penalty provided for in this Act.
(ii) On and after January 1, 1994, the taxpayer shall
be liable for a penalty as described in Section 3-4 of the
Uniform Penalty and Interest Act.
The chief executive officer, proprietor, owner or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person who
willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and punished
accordingly. The annual return form prescribed by the
Department shall include a warning that the person signing the
return may be liable for perjury.
The provisions of this Section concerning the filing of an
annual information return do not apply to a retailer who is not
required to file an income tax return with the United States
Government.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue

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collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability. Remaining net revenue means net
revenue minus any amount paid into the Working Families Fund
pursuant to this Section.
For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to
such sales, if the retailers who are affected do not make
written objection to the Department to this arrangement.
Any person who promotes, organizes, provides retail
selling space for concessionaires or other types of sellers at
the Illinois State Fair, DuQuoin State Fair, county fairs,
local fairs, art shows, flea markets and similar exhibitions
or events, including any transient merchant as defined by
Section 2 of the Transient Merchant Act of 1987, is required to
file a report with the Department providing the name of the
merchant's business, the name of the person or persons engaged
in merchant's business, the permanent address and Illinois
Retailers Occupation Tax Registration Number of the merchant,
the dates and location of the event and other reasonable
information that the Department may require. The report must
be filed not later than the 20th day of the month next
following the month during which the event with retail sales

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was held. Any person who fails to file a report required by
this Section commits a business offense and is subject to a
fine not to exceed $250.
Any person engaged in the business of selling tangible
personal property at retail as a concessionaire or other type
of seller at the Illinois State Fair, county fairs, art shows,
flea markets and similar exhibitions or events, or any
transient merchants, as defined by Section 2 of the Transient
Merchant Act of 1987, may be required to make a daily report of
the amount of such sales to the Department and to make a daily
payment of the full amount of tax due. The Department shall
impose this requirement when it finds that there is a
significant risk of loss of revenue to the State at such an
exhibition or event. Such a finding shall be based on evidence
that a substantial number of concessionaires or other sellers
who are not residents of Illinois will be engaging in the
business of selling tangible personal property at retail at
the exhibition or event, or other evidence of a significant
risk of loss of revenue to the State. The Department shall
notify concessionaires and other sellers affected by the
imposition of this requirement. In the absence of notification
by the Department, the concessionaires and other sellers shall
file their returns as otherwise required in this Section.
(Source: P.A. 101-10, Article 15, Section 15-25, eff. 6-5-19;
101-10, Article 25, Section 25-120, eff. 6-5-19; 101-27, eff.
6-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19;

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101-636, eff. 6-10-20; 102-634, eff. 8-27-21; 102-700, Article
60, Section 60-30, eff. 4-19-22; 102-700, Article 65, Section
65-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff.
1-1-23; revised 12-13-22.)
Section 30. The Cigarette Tax Act is amended by changing
Section 2 as follows:
(35 ILCS 130/2) (from Ch. 120, par. 453.2)
Sec. 2. Tax imposed; rate; collection, payment, and
distribution; discount.
(a) Beginning on July 1, 2019, in place of the aggregate
tax rate of 99 mills previously imposed by this Act, a tax is
imposed upon any person engaged in business as a retailer of
cigarettes at the rate of 149 mills per cigarette sold or
otherwise disposed of in the course of such business in this
State.
(b) The payment of such taxes shall be evidenced by a stamp
affixed to each original package of cigarettes, or an
authorized substitute for such stamp imprinted on each
original package of such cigarettes underneath the sealed
transparent outside wrapper of such original package, as
hereinafter provided. However, such taxes are not imposed upon
any activity in such business in interstate commerce or
otherwise, which activity may not under the Constitution and
statutes of the United States be made the subject of taxation

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by this State.
Beginning February 1, 2024, each month the Department
shall pay into the Working Families Fund an amount equal to any
net revenue realized for the preceding month as a result of
changes in this amendatory Act of the 103rd General Assembly
to the discount allowed to distributors under this Act and the
Cigarette Use Tax Act.
Out of the 149 mills per cigarette tax imposed by
subsection (a), net of any revenues paid into the Working
Families Fund, the revenues received from 4 mills shall be
paid into the Common School Fund each month, not to exceed
$9,000,000 per month. Out of the 149 mills per cigarette tax
imposed by subsection (a), net of any revenues paid into the
Working Families Fund, all of the revenues received from 7
mills shall be paid into the Common School Fund each month. Out
of the 149 mills per cigarette tax imposed by subsection (a),
net of any revenues paid into the Working Families Fund, 50
mills per cigarette each month shall be paid into the
Healthcare Provider Relief Fund.
Beginning on July 1, 2006, all of the moneys received by
the Department of Revenue pursuant to this Act and the
Cigarette Use Tax Act, other than the moneys that are
dedicated to Working Families Fund or the Common School Fund
and, beginning on the effective date of this amendatory Act of
the 97th General Assembly, other than the moneys from the
additional taxes imposed by this amendatory Act of the 97th

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General Assembly that must be paid each month into the
Healthcare Provider Relief Fund, and other than the moneys
from the additional taxes imposed by this amendatory Act of
the 101st General Assembly that must be paid each month under
subsection (c), shall be distributed each month as follows:
first, there shall be paid into the General Revenue Fund an
amount that, when added to the amount paid into the Common
School Fund for that month, equals $29,200,000; then, from the
moneys remaining, if any amounts required to be paid into the
General Revenue Fund in previous months remain unpaid, those
amounts shall be paid into the General Revenue Fund; then from
the moneys remaining, $5,000,000 per month shall be paid into
the School Infrastructure Fund; then, if any amounts required
to be paid into the School Infrastructure Fund in previous
months remain unpaid, those amounts shall be paid into the
School Infrastructure Fund; then the moneys remaining, if any,
shall be paid into the Long-Term Care Provider Fund.
(c) Beginning on July 1, 2019, all of the moneys from the
additional taxes imposed by Public Act 101-31, except for
moneys received from the tax on electronic cigarettes,
received by the Department of Revenue pursuant to this Act,
the Cigarette Use Tax Act, and the Tobacco Products Tax Act of
1995 shall be distributed each month into the Capital Projects
Fund.
(d) Except for moneys received from the additional taxes
imposed by Public Act 101-31, moneys collected from the tax

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imposed on little cigars under Section 10-10 of the Tobacco
Products Tax Act of 1995 shall be included with the moneys
collected under the Cigarette Tax Act and the Cigarette Use
Tax Act when making distributions to the Common School Fund,
the Healthcare Provider Relief Fund, the General Revenue Fund,
the School Infrastructure Fund, and the Long-Term Care
Provider Fund under this Section.
(e) If the tax imposed herein terminates or has
terminated, distributors who have bought stamps while such tax
was in effect and who therefore paid such tax, but who can
show, to the Department's satisfaction, that they sold the
cigarettes to which they affixed such stamps after such tax
had terminated and did not recover the tax or its equivalent
from purchasers, shall be allowed by the Department to take
credit for such absorbed tax against subsequent tax stamp
purchases from the Department by such distributor.
(f) The impact of the tax levied by this Act is imposed
upon the retailer and shall be prepaid or pre-collected by the
distributor for the purpose of convenience and facility only,
and the amount of the tax shall be added to the price of the
cigarettes sold by such distributor. Collection of the tax
shall be evidenced by a stamp or stamps affixed to each
original package of cigarettes, as hereinafter provided. Any
distributor who purchases stamps may credit any excess
payments verified by the Department against amounts
subsequently due for the purchase of additional stamps, until

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such time as no excess payment remains.
(g) Each distributor shall collect the tax from the
retailer at or before the time of the sale, shall affix the
stamps as hereinafter required, and shall remit the tax
collected from retailers to the Department, as hereinafter
provided. Any distributor who fails to properly collect and
pay the tax imposed by this Act shall be liable for the tax.
(h) Any distributor having cigarettes in his or her
possession on July 1, 2019 to which tax stamps have been
affixed, and any distributor having stamps in his or her
possession on July 1, 2019 that have not been affixed to
packages of cigarettes before July 1, 2019, is required to pay
the additional tax that begins on July 1, 2019 imposed by this
amendatory Act of the 101st General Assembly to the extent
that the volume of affixed and unaffixed stamps in the
distributor's possession on July 1, 2019 exceeds the average
monthly volume of cigarette stamps purchased by the
distributor in calendar year 2018. This payment, less the
discount provided in subsection (l), is due when the
distributor first makes a purchase of cigarette stamps on or
after July 1, 2019 or on the first due date of a return under
this Act occurring on or after July 1, 2019, whichever occurs
first. Those distributors may elect to pay the additional tax
on packages of cigarettes to which stamps have been affixed
and on any stamps in the distributor's possession that have
not been affixed to packages of cigarettes in their possession

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on July 1, 2019 over a period not to exceed 12 months from the
due date of the additional tax by notifying the Department in
writing. The first payment for distributors making such
election is due when the distributor first makes a purchase of
cigarette tax stamps on or after July 1, 2019 or on the first
due date of a return under this Act occurring on or after July
1, 2019, whichever occurs first. Distributors making such an
election are not entitled to take the discount provided in
subsection (l) on such payments.
(i) Any retailer having cigarettes in its possession on
July 1, 2019 to which tax stamps have been affixed is not
required to pay the additional tax that begins on July 1, 2019
imposed by this amendatory Act of the 101st General Assembly
on those stamped cigarettes.
(j) Distributors making sales of cigarettes to secondary
distributors shall add the amount of the tax to the price of
the cigarettes sold by the distributors. Secondary
distributors making sales of cigarettes to retailers shall
include the amount of the tax in the price of the cigarettes
sold to retailers. The amount of tax shall not be less than the
amount of taxes imposed by the State and all local
jurisdictions. The amount of local taxes shall be calculated
based on the location of the retailer's place of business
shown on the retailer's certificate of registration or
sub-registration issued to the retailer pursuant to Section 2a
of the Retailers' Occupation Tax Act. The original packages of

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cigarettes sold to the retailer shall bear all the required
stamps, or other indicia, for the taxes included in the price
of cigarettes.
(k) The amount of the Cigarette Tax imposed by this Act
shall be separately stated, apart from the price of the goods,
by distributors, manufacturer representatives, secondary
distributors, and retailers, in all bills and sales invoices.
(l) The distributor shall be required to collect the tax
provided under paragraph (a) hereof, and, to cover the costs
of such collection, shall be allowed a discount during any
year commencing July 1st and ending the following June 30th in
accordance with the schedule set out hereinbelow, which
discount shall be allowed at the time of purchase of the stamps
when purchase is required by this Act, or at the time when the
tax is remitted to the Department without the purchase of
stamps from the Department when that method of paying the tax
is required or authorized by this Act.
On and after December 1, 1985, and until January 1, 2024,
the a discount amount shall be equal to 1.75% of the amount of
the tax payable under this Act up to and including the first
$3,000,000 paid hereunder by such distributor to the
Department during any such year and 1.5% of the amount of any
additional tax paid hereunder by such distributor to the
Department during any such year shall apply. On and after
January 1, 2024, the discount amount shall be 2% of the tax
payable under this Act during the calendar year; however, on

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and after January 1, 2024, in no event shall the discount
allowed to any distributor be less than $5 in any calendar year
or more than $1,000 in any calendar year.
Two or more distributors that use a common means of
affixing revenue tax stamps or that are owned or controlled by
the same interests shall be treated as a single distributor
for the purpose of computing the discount.
(m) The taxes herein imposed are in addition to all other
occupation or privilege taxes imposed by the State of
Illinois, or by any political subdivision thereof, or by any
municipal corporation.
(Source: P.A. 100-1171, eff. 1-4-19; 101-31, eff. 6-28-19;
101-604, eff. 12-13-19.)
Section 35. The Cigarette Use Tax Act is amended by
changing Section 3 as follows:
(35 ILCS 135/3) (from Ch. 120, par. 453.33)
Sec. 3. Stamp payment. The tax hereby imposed shall be
collected by a distributor maintaining a place of business in
this State or a distributor authorized by the Department
pursuant to Section 7 hereof to collect the tax, and the amount
of the tax shall be added to the price of the cigarettes sold
by such distributor. Collection of the tax shall be evidenced
by a stamp or stamps affixed to each original package of
cigarettes or by an authorized substitute for such stamp

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imprinted on each original package of such cigarettes
underneath the sealed transparent outside wrapper of such
original package, except as hereinafter provided. Each
distributor who is required or authorized to collect the tax
herein imposed, before delivering or causing to be delivered
any original packages of cigarettes in this State to any
purchaser, shall firmly affix a proper stamp or stamps to each
such package, or (in the case of manufacturers of cigarettes
in original packages which are contained inside a sealed
transparent wrapper) shall imprint the required language on
the original package of cigarettes beneath such outside
wrapper as hereinafter provided. Such stamp or stamps need not
be affixed to the original package of any cigarettes with
respect to which the distributor is required to affix a like
stamp or stamps by virtue of the Cigarette Tax Act, however,
and no tax imprint need be placed underneath the sealed
transparent wrapper of an original package of cigarettes with
respect to which the distributor is required or authorized to
employ a like tax imprint by virtue of the Cigarette Tax Act.
Any distributor who purchases stamps may credit any excess
payments verified by the Department against amounts
subsequently due for the purchase of additional stamps, until
such time as no excess payment remains.
No stamp or imprint may be affixed to, or made upon, any
package of cigarettes unless that package complies with all
requirements of the federal Cigarette Labeling and Advertising

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Act, 15 U.S.C. 1331 and following, for the placement of
labels, warnings, or any other information upon a package of
cigarettes that is sold within the United States. Under the
authority of Section 6, the Department shall revoke the
license of any distributor that is determined to have violated
this paragraph. A person may not affix a stamp on a package of
cigarettes, cigarette papers, wrappers, or tubes if that
individual package has been marked for export outside the
United States with a label or notice in compliance with
Section 290.185 of Title 27 of the Code of Federal
Regulations. It is not a defense to a proceeding for violation
of this paragraph that the label or notice has been removed,
mutilated, obliterated, or altered in any manner.
Only distributors licensed under this Act and
transporters, as defined in Section 9c of the Cigarette Tax
Act, may possess unstamped original packages of cigarettes.
Prior to shipment to an Illinois retailer or secondary
distributor, a stamp shall be applied to each original package
of cigarettes sold to the retailer or secondary distributor. A
distributor may apply a tax stamp only to an original package
of cigarettes purchased or obtained directly from an in-state
maker, manufacturer, or fabricator licensed as a distributor
under Section 4 of this Act or an out-of-state maker,
manufacturer, or fabricator holding a permit under Section 7
of this Act. A licensed distributor may ship or otherwise
cause to be delivered unstamped original packages of

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cigarettes in, into, or from this State. A licensed
distributor may transport unstamped original packages of
cigarettes to a facility, wherever located, owned or
controlled by such distributor; however, a distributor may not
transport unstamped original packages of cigarettes to a
facility where retail sales of cigarettes take place or to a
facility where a secondary distributor makes sales for resale.
Any licensed distributor that ships or otherwise causes to be
delivered unstamped original packages of cigarettes into,
within, or from this State shall ensure that the invoice or
equivalent documentation and the bill of lading or freight
bill for the shipment identifies the true name and address of
the consignor or seller, the true name and address of the
consignee or purchaser, and the quantity by brand style of the
cigarettes so transported, provided that this Section shall
not be construed as to impose any requirement or liability
upon any common or contract carrier.
Distributors making sales of cigarettes to secondary
distributors shall add the amount of the tax to the price of
the cigarettes sold by the distributors. Secondary
distributors making sales of cigarettes to retailers shall
include the amount of the tax in the price of the cigarettes
sold to retailers. The amount of tax shall not be less than the
amount of taxes imposed by the State and all local
jurisdictions. The amount of local taxes shall be calculated
based on the location of the retailer's place of business

HB4071 - 144 - LRB103 32235 HLH 61432 b
shown on the retailer's certificate of registration or
sub-registration issued to the retailer pursuant to Section 2a
of the Retailers' Occupation Tax Act. The original packages of
cigarettes sold by the retailer shall bear all the required
stamps, or other indicia, for the taxes included in the price
of cigarettes.
Stamps, when required hereunder, shall be purchased from
the Department, or any person authorized by the Department, by
distributors. On and after July 1, 2003, payment for such
stamps must be made by means of electronic funds transfer. The
Department may refuse to sell stamps to any person who does not
comply with the provisions of this Act. Beginning on June 6,
2002 and through June 30, 2002, persons holding valid licenses
as distributors may purchase cigarette tax stamps up to an
amount equal to 115% of the distributor's average monthly
cigarette tax stamp purchases over the 12 calendar months
prior to June 6, 2002.
Prior to December 1, 1985, the Department shall allow a
distributor 21 days in which to make final payment of the
amount to be paid for such stamps, by allowing the distributor
to make payment for the stamps at the time of purchasing them
with a draft which shall be in such form as the Department
prescribes, and which shall be payable within 21 days
thereafter: Provided that such distributor has filed with the
Department, and has received the Department's approval of, a
bond, which is in addition to the bond required under Section 4

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of this Act, payable to the Department in an amount equal to
80% of such distributor's average monthly tax liability to the
Department under this Act during the preceding calendar year
or $500,000, whichever is less. The bond shall be joint and
several and shall be in the form of a surety company bond in
such form as the Department prescribes, or it may be in the
form of a bank certificate of deposit or bank letter of credit.
The bond shall be conditioned upon the distributor's payment
of the amount of any 21-day draft which the Department accepts
from that distributor for the delivery of stamps to that
distributor under this Act. The distributor's failure to pay
any such draft, when due, shall also make such distributor
automatically liable to the Department for a penalty equal to
25% of the amount of such draft.
On and after December 1, 1985 and until July 1, 2003, the
Department shall allow a distributor 30 days in which to make
final payment of the amount to be paid for such stamps, by
allowing the distributor to make payment for the stamps at the
time of purchasing them with a draft which shall be in such
form as the Department prescribes, and which shall be payable
within 30 days thereafter, and beginning on January 1, 2003
and thereafter, the draft shall be payable by means of
electronic funds transfer: Provided that such distributor has
filed with the Department, and has received the Department's
approval of, a bond, which is in addition to the bond required
under Section 4 of this Act, payable to the Department in an

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amount equal to 150% of such distributor's average monthly tax
liability to the Department under this Act during the
preceding calendar year or $750,000, whichever is less, except
that as to bonds filed on or after January 1, 1987, such
additional bond shall be in an amount equal to 100% of such
distributor's average monthly tax liability under this Act
during the preceding calendar year or $750,000, whichever is
less. The bond shall be joint and several and shall be in the
form of a surety company bond in such form as the Department
prescribes, or it may be in the form of a bank certificate of
deposit or bank letter of credit. The bond shall be
conditioned upon the distributor's payment of the amount of
any 30-day draft which the Department accepts from that
distributor for the delivery of stamps to that distributor
under this Act. The distributor's failure to pay any such
draft, when due, shall also make such distributor
automatically liable to the Department for a penalty equal to
25% of the amount of such draft.
Every prior continuous compliance taxpayer shall be exempt
from all requirements under this Section concerning the
furnishing of such bond, as defined in this Section, as a
condition precedent to his being authorized to engage in the
business licensed under this Act. This exemption shall
continue for each such taxpayer until such time as he may be
determined by the Department to be delinquent in the filing of
any returns, or is determined by the Department (either

HB4071 - 147 - LRB103 32235 HLH 61432 b
through the Department's issuance of a final assessment which
has become final under the Act, or by the taxpayer's filing of
a return which admits tax to be due that is not paid) to be
delinquent or deficient in the paying of any tax under this
Act, at which time that taxpayer shall become subject to the
bond requirements of this Section and, as a condition of being
allowed to continue to engage in the business licensed under
this Act, shall be required to furnish bond to the Department
in such form as provided in this Section. Such taxpayer shall
furnish such bond for a period of 2 years, after which, if the
taxpayer has not been delinquent in the filing of any returns,
or delinquent or deficient in the paying of any tax under this
Act, the Department may reinstate such person as a prior
continuance compliance taxpayer. Any taxpayer who fails to pay
an admitted or established liability under this Act may also
be required to post bond or other acceptable security with the
Department guaranteeing the payment of such admitted or
established liability.
Except as otherwise provided in this Section, any person
aggrieved by any decision of the Department under this Section
may, within the time allowed by law, protest and request a
hearing before the Department, whereupon the Department shall
give notice and shall hold a hearing in conformity with the
provisions of this Act and then issue its final administrative
decision in the matter to such person. Effective July 1, 2013,
protests concerning matters that are subject to the

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jurisdiction of the Illinois Independent Tax Tribunal shall be
filed in accordance with the Illinois Independent Tax Tribunal
Act of 2012, and hearings concerning those matters shall be
held before the Tribunal in accordance with that Act. With
respect to protests filed with the Department prior to July 1,
2013 that would otherwise be subject to the jurisdiction of
the Illinois Independent Tax Tribunal, the person filing the
protest may elect to be subject to the provisions of the
Illinois Independent Tax Tribunal Act of 2012 at any time on or
after July 1, 2013, but not later than 30 days after the date
on which the protest was filed. If made, the election shall be
irrevocable. In the absence of such a protest filed within the
time allowed by law, the Department's decision shall become
final without any further determination being made or notice
given.
The Department shall discharge any surety and shall
release and return any bond or security deposited, assigned,
pledged, or otherwise provided to it by a taxpayer under this
Section within 30 days after:
(1) such Taxpayer becomes a prior continuous
compliance taxpayer; or
(2) such taxpayer has ceased to collect receipts on
which he is required to remit tax to the Department, has
filed a final tax return, and has paid to the Department an
amount sufficient to discharge his remaining tax liability
as determined by the Department under this Act. The

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Department shall make a final determination of the
taxpayer's outstanding tax liability as expeditiously as
possible after his final tax return has been filed. If the
Department cannot make such final determination within 45
days after receiving the final tax return, within such
period it shall so notify the taxpayer, stating its
reasons therefor.
At the time of purchasing such stamps from the Department
when purchase is required by this Act, or at the time when the
tax which he has collected is remitted by a distributor to the
Department without the purchase of stamps from the Department
when that method of remitting the tax that has been collected
is required or authorized by this Act, the distributor shall
be allowed a discount during any year commencing July 1 and
ending the following June 30 in accordance with the schedule
set out hereinbelow, from the amount to be paid by him to the
Department for such stamps, or to be paid by him to the
Department on the basis of monthly remittances (as the case
may be), to cover the cost, to such distributor, of collecting
the tax herein imposed by affixing such stamps to the original
packages of cigarettes sold by such distributor or by placing
tax imprints underneath the sealed transparent wrapper of
original packages of cigarettes sold by such distributor (as
the case may be). : (1) Prior to December 1, 1985, a discount
equal to 1-2/3% of the amount of the tax up to and including
the first $700,000 paid hereunder by such distributor to the

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Department during any such year; 1-1/3% of the next $700,000
of tax or any part thereof, paid hereunder by such distributor
to the Department during any such year; 1% of the next $700,000
of tax, or any part thereof, paid hereunder by such
distributor to the Department during any such year; and 2/3 of
1% of the amount of any additional tax paid hereunder by such
distributor to the Department during any such year or (2) On
and after December 1, 1985 and until January 1, 2024, a
discount equal to 1.75% of the amount of the tax payable under
this Act up to and including the first $3,000,000 paid
hereunder by such distributor to the Department during any
such year and 1.5% of the amount of any additional tax paid
hereunder by such distributor to the Department during any
such year. On and after January 1, 2024, the discount shall be
equal to 2% of the tax paid by the distributor to the
Department under this Act during the calendar year; however,
on and after January 1, 2024, in no event shall the discount
allowed to any distributor be less than $5 in any calendar year
or more than $1,000 in any calendar year.
Two or more distributors that use a common means of
affixing revenue tax stamps or that are owned or controlled by
the same interests shall be treated as a single distributor
for the purpose of computing the discount.
Cigarette manufacturers who are distributors under Section
7(a) of this Act, and who place their cigarettes in original
packages which are contained inside a sealed transparent

HB4071 - 151 - LRB103 32235 HLH 61432 b
wrapper, shall be required to remit the tax which they are
required to collect under this Act to the Department by
remitting the amount thereof to the Department by the 5th day
of each month, covering cigarettes shipped or otherwise
delivered to points in Illinois to purchasers during the
preceding calendar month, but a distributor need not remit to
the Department the tax so collected by him from purchasers
under this Act to the extent to which such distributor is
required to remit the tax imposed by the Cigarette Tax Act to
the Department with respect to the same cigarettes. All taxes
upon cigarettes under this Act are a direct tax upon the retail
consumer and shall conclusively be presumed to be precollected
for the purpose of convenience and facility only. Cigarette
manufacturers that are distributors licensed under Section
7(a) of this Act and who place their cigarettes in original
packages which are contained inside a sealed transparent
wrapper, before delivering such cigarettes or causing such
cigarettes to be delivered in this State to purchasers, shall
evidence their obligation to collect and remit the tax due
with respect to such cigarettes by imprinting language to be
prescribed by the Department on each original package of such
cigarettes underneath the sealed transparent outside wrapper
of such original package, in such place thereon and in such
manner as the Department may prescribe; provided (as stated
hereinbefore) that this requirement does not apply when such
distributor is required or authorized by the Cigarette Tax Act

HB4071 - 152 - LRB103 32235 HLH 61432 b
to place the tax imprint provided for in the last paragraph of
Section 3 of that Act underneath the sealed transparent
wrapper of such original package of cigarettes. Such imprinted
language shall acknowledge the manufacturer's collection and
payment of or liability for the tax imposed by this Act with
respect to such cigarettes.
The Department shall adopt the design or designs of the
tax stamps and shall procure the printing of such stamps in
such amounts and denominations as it deems necessary to
provide for the affixation of the proper amount of tax stamps
to each original package of cigarettes.
Where tax stamps are required, the Department may
authorize distributors to affix revenue tax stamps by
imprinting tax meter stamps upon original packages of
cigarettes. The Department shall adopt rules and regulations
relating to the imprinting of such tax meter stamps as will
result in payment of the proper taxes as herein imposed. No
distributor may affix revenue tax stamps to original packages
of cigarettes by imprinting meter stamps thereon unless such
distributor has first obtained permission from the Department
to employ this method of affixation. The Department shall
regulate the use of tax meters and may, to assure the proper
collection of the taxes imposed by this Act, revoke or suspend
the privilege, theretofore granted by the Department to any
distributor, to imprint tax meter stamps upon original
packages of cigarettes.

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The tax hereby imposed and not paid pursuant to this
Section shall be paid to the Department directly by any person
using such cigarettes within this State, pursuant to Section
12 hereof.
A distributor shall not affix, or cause to be affixed, any
stamp or imprint to a package of cigarettes, as provided for in
this Section, if the tobacco product manufacturer, as defined
in Section 10 of the Tobacco Product Manufacturers' Escrow
Act, that made or sold the cigarettes has failed to become a
participating manufacturer, as defined in subdivision (a)(1)
of Section 15 of the Tobacco Product Manufacturers' Escrow
Act, or has failed to create a qualified escrow fund for any
cigarettes manufactured by the tobacco product manufacturer
and sold in this State or otherwise failed to bring itself into
compliance with subdivision (a)(2) of Section 15 of the
Tobacco Product Manufacturers' Escrow Act.
(Source: P.A. 100-1171, eff. 1-4-19.)
Section 40. The Hotel Operators' Occupation Tax Act is
amended by changing Section 6 as follows:
(35 ILCS 145/6) (from Ch. 120, par. 481b.36)
Sec. 6. Filing of returns and distribution of proceeds.
Except as provided hereinafter in this Section, on or before
the last day of each calendar month, every person engaged in
the business of renting, leasing or letting rooms in a hotel in

HB4071 - 154 - LRB103 32235 HLH 61432 b
this State during the preceding calendar month shall file a
return with the Department, stating:
1. The name of the operator;
2. His residence address and the address of his
principal place of business and the address of the
principal place of business (if that is a different
address) from which he engages in the business of renting,
leasing or letting rooms in a hotel in this State;
3. Total amount of rental receipts received by him
during the preceding calendar month from renting, leasing
or letting rooms during such preceding calendar month;
4. Total amount of rental receipts received by him
during the preceding calendar month from renting, leasing
or letting rooms to permanent residents during such
preceding calendar month;
5. Total amount of other exclusions from gross rental
receipts allowed by this Act;
6. Gross rental receipts which were received by him
during the preceding calendar month and upon the basis of
which the tax is imposed;
7. The amount of tax due;
8. Such other reasonable information as the Department
may require.
If the operator's average monthly tax liability to the
Department does not exceed $200, the Department may authorize
his returns to be filed on a quarter annual basis, with the

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return for January, February and March of a given year being
due by April 30 of such year; with the return for April, May
and June of a given year being due by July 31 of such year;
with the return for July, August and September of a given year
being due by October 31 of such year, and with the return for
October, November and December of a given year being due by
January 31 of the following year.
If the operator's average monthly tax liability to the
Department does not exceed $50, the Department may authorize
his returns to be filed on an annual basis, with the return for
a given year being due by January 31 of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act concerning
the time within which an operator may file his return, in the
case of any operator who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such operator shall file a final return under this Act with the
Department not more than 1 month after discontinuing such
business.
Where the same person has more than 1 business registered
with the Department under separate registrations under this
Act, such person shall not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.

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In his return, the operator shall determine the value of
any consideration other than money received by him in
connection with the renting, leasing or letting of rooms in
the course of his business and he shall include such value in
his return. Such determination shall be subject to review and
revision by the Department in the manner hereinafter provided
for the correction of returns.
Where the operator is a corporation, the return filed on
behalf of such corporation shall be signed by the president,
vice-president, secretary or treasurer or by the properly
accredited agent of such corporation.
The person filing the return herein provided for shall, at
the time of filing such return, pay to the Department the
amount of tax herein imposed. The operator filing the return
under this Section shall, at the time of filing such return,
pay to the Department the amount of tax imposed by this Act
less the vendor discount amount a discount of 2.1% or $25 per
calendar year, whichever is greater, which is allowed to
reimburse the operator for the expenses incurred in keeping
records, preparing and filing returns, remitting the tax and
supplying data to the Department on request. Prior to January
1, 2024, the vendor discount amount shall be 2.1% or $25 per
calendar year, whichever is greater. On and after January 1,
2024, the vendor discount amount shall be 2% of the proceeds
collected during the calendar year; however, on and after
January 1, 2024, in no event shall the discount allowed to any

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person be less than $5 in any calendar year or more than $1,000
in any calendar year.
If any payment provided for in this Section exceeds the
operator's liabilities under this Act, as shown on an original
return, the Department may authorize the operator to credit
such excess payment against liability subsequently to be
remitted to the Department under this Act, in accordance with
reasonable rules adopted by the Department. If the Department
subsequently determines that all or any part of the credit
taken was not actually due to the operator, the operator's
discount shall be reduced by an amount equal to the difference
between the discount as applied to the credit taken and that
actually due, and that operator shall be liable for penalties
and interest on such difference.
Beginning February 1, 2024, each month the Department
shall pay into the Working Families Fund an amount equal to any
net revenue realized for the preceding month as a result of the
limit on the vendor's discount of $1,000 annually and the
difference between the vendor's discount of 2% and 2.1%.
There shall be deposited in the Build Illinois Fund in the
State Treasury for each State fiscal year 40% of the amount of
total net proceeds from the tax imposed by subsection (a) of
Section 3 net of any such proceeds paid into the Working
Families Fund. Of the remaining 60% net of any such proceeds
paid into the Working Families Fund, $5,000,000 shall be
deposited in the Illinois Sports Facilities Fund and credited

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to the Subsidy Account each fiscal year by making monthly
deposits in the amount of 1/8 of $5,000,000 plus cumulative
deficiencies in such deposits for prior months, and an
additional $8,000,000 shall be deposited in the Illinois
Sports Facilities Fund and credited to the Advance Account
each fiscal year by making monthly deposits in the amount of
1/8 of $8,000,000 plus any cumulative deficiencies in such
deposits for prior months; provided, that for fiscal years
ending after June 30, 2001, the amount to be so deposited into
the Illinois Sports Facilities Fund and credited to the
Advance Account each fiscal year shall be increased from
$8,000,000 to the then applicable Advance Amount and the
required monthly deposits beginning with July 2001 shall be in
the amount of 1/8 of the then applicable Advance Amount plus
any cumulative deficiencies in those deposits for prior
months. (The deposits of the additional $8,000,000 or the then
applicable Advance Amount, as applicable, during each fiscal
year shall be treated as advances of funds to the Illinois
Sports Facilities Authority for its corporate purposes to the
extent paid to the Authority or its trustee and shall be repaid
into the General Revenue Fund in the State Treasury by the
State Treasurer on behalf of the Authority pursuant to Section
19 of the Illinois Sports Facilities Authority Act, as
amended. If in any fiscal year the full amount of the then
applicable Advance Amount is not repaid into the General
Revenue Fund, then the deficiency shall be paid from the

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amount in the Local Government Distributive Fund that would
otherwise be allocated to the City of Chicago under the State
Revenue Sharing Act.)
For purposes of the foregoing paragraph, the term "Advance
Amount" means, for fiscal year 2002, $22,179,000, and for
subsequent fiscal years through fiscal year 2033, 105.615% of
the Advance Amount for the immediately preceding fiscal year,
rounded up to the nearest $1,000.
Of the remaining 60% of the amount of total net proceeds
prior to August 1, 2011 from the tax imposed by subsection (a)
of Section 3 after all required deposits in the Illinois
Sports Facilities Fund, the amount equal to 8% of the net
revenue realized from this Act plus an amount equal to 8% of
the net revenue realized from any tax imposed under Section
4.05 of the Chicago World's Fair-1992 Authority Act during the
preceding month shall be deposited in the Local Tourism Fund
each month for purposes authorized by Section 605-705 of the
Department of Commerce and Economic Opportunity Law (20 ILCS
605/605-705). Of the remaining 60% of the amount of total net
proceeds less any such proceeds paid into the Working Families
Fund beginning on August 1, 2011 from the tax imposed by
subsection (a) of Section 3 after all required deposits in the
Illinois Sports Facilities Fund, an amount equal to 8% of the
net revenue realized from this Act plus an amount equal to 8%
of the net revenue realized from any tax imposed under Section
4.05 of the Chicago World's Fair-1992 Authority Act during the

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preceding month shall be deposited as follows: 18% of such
amount shall be deposited into the Chicago Travel Industry
Promotion Fund for the purposes described in subsection (n) of
Section 5 of the Metropolitan Pier and Exposition Authority
Act and the remaining 82% of such amount shall be deposited
into the Local Tourism Fund each month for purposes authorized
by Section 605-705 of the Department of Commerce and Economic
Opportunity Law. Beginning on August 1, 1999 and ending on
July 31, 2011, an amount equal to 4.5% of the net revenue
realized from the Hotel Operators' Occupation Tax Act during
the preceding month shall be deposited into the International
Tourism Fund for the purposes authorized in Section 605-707 of
the Department of Commerce and Economic Opportunity Law.
Beginning on August 1, 2011, an amount equal to 4.5% of the net
revenue realized from this Act net of any such proceeds paid
into the Working Families Fund during the preceding month
shall be deposited as follows: 55% of such amount shall be
deposited into the Chicago Travel Industry Promotion Fund for
the purposes described in subsection (n) of Section 5 of the
Metropolitan Pier and Exposition Authority Act and the
remaining 45% of such amount deposited into the International
Tourism Fund for the purposes authorized in Section 605-707 of
the Department of Commerce and Economic Opportunity Law. "Net
revenue realized for a month" means the revenue collected by
the State under that Act during the previous month less the
amount paid out during that same month as refunds to taxpayers

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for overpayment of liability under that Act.
After making all these deposits, all other proceeds of the
tax imposed under subsection (a) of Section 3 shall be
deposited in the Tourism Promotion Fund in the State Treasury.
All moneys received by the Department from the additional tax
imposed under subsection (b) of Section 3 net of any such
proceeds paid into the Working Families Fund shall be
deposited into the Build Illinois Fund in the State Treasury.
The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.
Such annual return to the Department shall include a statement
of gross receipts as shown by the operator's last State income
tax return. If the total receipts of the business as reported
in the State income tax return do not agree with the gross
receipts reported to the Department for the same period, the
operator shall attach to his annual information return a
schedule showing a reconciliation of the 2 amounts and the
reasons for the difference. The operator's annual information
return to the Department shall also disclose pay roll
information of the operator's business during the year covered
by such return and any additional reasonable information which
the Department deems would be helpful in determining the
accuracy of the monthly, quarterly or annual tax returns by

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such operator as hereinbefore provided for in this Section.
If the annual information return required by this Section
is not filed when and as required the taxpayer shall be liable
for a penalty in an amount determined in accordance with
Section 3-4 of the Uniform Penalty and Interest Act until such
return is filed as required, the penalty to be assessed and
collected in the same manner as any other penalty provided for
in this Act.
The chief executive officer, proprietor, owner or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person who
willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and punished
accordingly. The annual return form prescribed by the
Department shall include a warning that the person signing the
return may be liable for perjury.
The foregoing portion of this Section concerning the
filing of an annual information return shall not apply to an
operator who is not required to file an income tax return with
the United States Government.
(Source: P.A. 102-16, eff. 6-17-21.)
Section 45. The Motor Fuel Tax Law is amended by changing
Sections 2b, 6, and 6a as follows:
(35 ILCS 505/2b) (from Ch. 120, par. 418b)

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Sec. 2b. Receiver's monthly return. In addition to the tax
collection and reporting responsibilities imposed elsewhere in
this Act, a person who is required to pay the tax imposed by
Section 2a of this Act shall pay the tax to the Department by
return showing all fuel purchased, acquired or received and
sold, distributed or used during the preceding calendar month
including losses of fuel as the result of evaporation or
shrinkage due to temperature variations, and such other
reasonable information as the Department may require. Losses
of fuel as the result of evaporation or shrinkage due to
temperature variations may not exceed 1% of the total gallons
in storage at the beginning of the month, plus the receipts of
gallonage during the month, minus the gallonage remaining in
storage at the end of the month. Any loss reported that is in
excess of this amount shall be subject to the tax imposed by
Section 2a of this Law. On and after July 1, 2001, for each
6-month period January through June, net losses of fuel (for
each category of fuel that is required to be reported on a
return) as the result of evaporation or shrinkage due to
temperature variations may not exceed 1% of the total gallons
in storage at the beginning of each January, plus the receipts
of gallonage each January through June, minus the gallonage
remaining in storage at the end of each June. On and after July
1, 2001, for each 6-month period July through December, net
losses of fuel (for each category of fuel that is required to
be reported on a return) as the result of evaporation or

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shrinkage due to temperature variations may not exceed 1% of
the total gallons in storage at the beginning of each July,
plus the receipts of gallonage each July through December,
minus the gallonage remaining in storage at the end of each
December. Any net loss reported that is in excess of this
amount shall be subject to the tax imposed by Section 2a of
this Law. For purposes of this Section, "net loss" means the
number of gallons gained through temperature variations minus
the number of gallons lost through temperature variations or
evaporation for each of the respective 6-month periods.
The return shall be prescribed by the Department and shall
be filed between the 1st and 20th days of each calendar month.
The Department may, in its discretion, combine the returns
filed under this Section, Section 5, and Section 5a of this
Act. The return must be accompanied by appropriate
computer-generated magnetic media supporting schedule data in
the format required by the Department, unless, as provided by
rule, the Department grants an exception upon petition of a
taxpayer. If the return is filed timely, the seller shall take
a discount of 2% through June 30, 2003 and 1.75% thereafter
which is allowed to reimburse the seller for the expenses
incurred in keeping records, preparing and filing returns,
collecting and remitting the tax and supplying data to the
Department on request. Prior to January 1, 2024, the vendor
discount amount shall be 1.75%. On and after January 1, 2024,
the vendor discount amount shall be 2% of the proceeds

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collected during the calendar year; however, on and after
January 1, 2024, in no event shall the discount allowed to any
person be less than $5 in any calendar year or more than $1,000
in any calendar year. The discount, however, shall be
applicable only to the amount of payment which accompanies a
return that is filed timely in accordance with this Section.
The discount under this Section is not allowed for taxes paid
on aviation fuel that are subject to the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133.
Beginning on January 1, 2020 and ending with returns due
on January 20, 2021, each person who is required to pay the tax
imposed under Section 2a of this Act on aviation fuel sold or
used in this State during the preceding calendar month shall,
instead of reporting and paying tax on aviation fuel as
otherwise required by this Section, report and pay such tax on
a separate aviation fuel tax return or a separate line on the
return. The requirements related to the return shall be as
otherwise provided in this Section. Notwithstanding any other
provisions of this Act to the contrary, a person required to
pay the tax imposed by Section 2a of this Act on aviation fuel
shall file all aviation fuel tax returns and shall make all
aviation fuel tax payments by electronic means in the manner
and form required by the Department. For purposes of this Law,
"aviation fuel" means jet fuel and aviation gasoline.
If any payment provided for in this Section exceeds the
receiver's liabilities under this Act, as shown on an original

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return, the Department may authorize the receiver to credit
such excess payment against liability subsequently to be
remitted to the Department under this Act, in accordance with
reasonable rules adopted by the Department. If the Department
subsequently determines that all or any part of the credit
taken was not actually due to the receiver, the receiver's
discount shall be reduced by an amount equal to the difference
between the discount as applied to the credit taken and that
actually due, and that receiver shall be liable for penalties
and interest on such difference.
(Source: P.A. 100-1171, eff. 1-4-19; 101-10, eff. 6-5-19;
101-604, eff. 12-13-19.)
(35 ILCS 505/6) (from Ch. 120, par. 422)
Sec. 6. Collection of tax; distributors. A distributor who
sells or distributes any motor fuel, which he is required by
Section 5 to report to the Department when filing a return,
shall (except as hereinafter provided) collect at the time of
such sale and distribution, the amount of tax imposed under
this Act on all such motor fuel sold and distributed, and at
the time of making a return, the distributor shall pay to the
Department the amount so collected less a discount of 2%
through June 30, 2003 and 1.75% thereafter which is allowed to
reimburse the distributor for the expenses incurred in keeping
records, preparing and filing returns, collecting and
remitting the tax and supplying data to the Department on

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request, and shall also pay to the Department an amount equal
to the amount that would be collectible as a tax in the event
of a sale thereof on all such motor fuel used by said
distributor during the period covered by the return. Prior to
July 1, 2003, the discount amount shall be 2%. From July 1,
2003 through December 31, 2023, the discount amount shall be
1.75%. On and after January 1, 2024, the discount amount shall
be 2% of the proceeds collected during the calendar year;
however, on and after January 1, 2024, in no event shall the
discount allowed to any distributor be less than $5 in any
calendar year or more than $1,000 in any calendar year.
However, no payment shall be made based upon dyed diesel fuel
used by the distributor for non-highway purposes. The discount
shall only be applicable to the amount of tax payment which
accompanies a return which is filed timely in accordance with
Section 5 of this Act. In each subsequent sale of motor fuel on
which the amount of tax imposed under this Act has been
collected as provided in this Section, the amount so collected
shall be added to the selling price, so that the amount of tax
is paid ultimately by the user of the motor fuel. However, no
collection or payment shall be made in the case of the sale or
use of any motor fuel to the extent to which such sale or use
of motor fuel may not, under the constitution and statutes of
the United States, be made the subject of taxation by this
State. A person whose license to act as a distributor of fuel
has been revoked shall, at the time of making a return, also

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pay to the Department an amount equal to the amount that would
be collectible as a tax in the event of a sale thereof on all
motor fuel, which he is required by the second paragraph of
Section 5 to report to the Department in making a return, and
which he had on hand on the date on which the license was
revoked, and with respect to which no tax had been previously
paid under this Act.
A distributor may make tax free sales of motor fuel, with
respect to which he is otherwise required to collect the tax,
only as specified in the following items 1 through 7.
1. When the sale is made to a person holding a valid
unrevoked license as a distributor, by making a specific
notation thereof on invoices or sales slip covering each
sale.
2. When the sale is made with delivery to a purchaser
outside of this State.
3. When the sale is made to the Federal Government or
its instrumentalities.
4. When the sale is made to a municipal corporation
owning and operating a local transportation system for
public service in this State when an official certificate
of exemption is obtained in lieu of the tax.
5. When the sale is made to a privately owned public
utility owning and operating 2 axle vehicles designed and
used for transporting more than 7 passengers, which
vehicles are used as common carriers in general

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transportation of passengers, are not devoted to any
specialized purpose and are operated entirely within the
territorial limits of a single municipality or of any
group of contiguous municipalities, or in a close radius
thereof, and the operations of which are subject to the
regulations of the Illinois Commerce Commission, when an
official certificate of exemption is obtained in lieu of
the tax.
6. When a sale of special fuel is made to a person
holding a valid, unrevoked license as a supplier, by
making a specific notation thereof on the invoice or sales
slip covering each such sale.
7. When a sale of dyed diesel fuel is made by the
licensed distributor to the end user of the fuel who is not
a licensed distributor or a licensed supplier for
non-highway purposes and the fuel is (i) delivered from a
vehicle designed for the specific purpose of such sales
and delivered directly into a stationary bulk storage tank
that displays the notice required by Section 4f of this
Act, (ii) delivered from a vehicle designed for the
specific purpose of such sales and delivered directly into
the fuel supply tanks of non-highway vehicles that are not
required to be registered for highway use, or (iii)
dispensed from a dyed diesel fuel dispensing facility that
has withdrawal facilities that are not readily accessible
to and are not capable of dispensing dyed diesel fuel into

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the fuel supply tank of a motor vehicle.
A specific notation is required on the invoice or
sales slip covering such sales, and any supporting
documentation that may be required by the Department must
be obtained by the distributor. The distributor shall
obtain and keep the supporting documentation in such form
as the Department may require by rule.
For purposes of this item 7, a dyed diesel fuel
dispensing facility is considered to have withdrawal
facilities that are "not readily accessible to and not
capable of dispensing dyed diesel fuel into the fuel
supply tank of a motor vehicle" only if the dyed diesel
fuel is delivered from: (i) a dispenser hose that is short
enough so that it will not reach the fuel supply tank of a
motor vehicle or (ii) a dispenser that is enclosed by a
fence or other physical barrier so that a vehicle cannot
pull alongside the dispenser to permit fueling.
8. (Blank).
All special fuel sold or used for non-highway purposes
must have a dye added in accordance with Section 4d of this
Law.
All suits or other proceedings brought for the purpose of
recovering any taxes, interest or penalties due the State of
Illinois under this Act may be maintained in the name of the
Department.
(Source: P.A. 102-1019, eff. 5-27-22.)

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(35 ILCS 505/6a) (from Ch. 120, par. 422a)
Sec. 6a. Collection of tax; suppliers. A supplier, other
than a licensed distributor, who sells or distributes any
special fuel, which he is required by Section 5a to report to
the Department when filing a return, shall (except as
hereinafter provided) collect at the time of such sale and
distribution, the amount of tax imposed under this Act on all
such special fuel sold and distributed, and at the time of
making a return, the supplier shall pay to the Department the
amount so collected less a discount of 2% through June 30, 2003
and 1.75% thereafter which is allowed to reimburse the
supplier for the expenses incurred in keeping records,
preparing and filing returns, collecting and remitting the tax
and supplying data to the Department on request, and shall
also pay to the Department an amount equal to the amount that
would be collectible as a tax in the event of a sale thereof on
all such special fuel used by said supplier during the period
covered by the return. Prior to July 1, 2003, the discount
amount shall be 2%. From July 1, 2003 through December 31,
2023, the discount amount shall be 1.75%. On and after January
1, 2024, the discount amount shall be 2% of the proceeds
collected during the calendar year; however, on and after
January 1, 2024, in no event shall the discount allowed to any
distributor be less than $5 in any calendar year or more than
$1,000 in any calendar year. However, no payment shall be made

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based upon dyed diesel fuel used by said supplier for
non-highway purposes. The discount shall only be applicable to
the amount of tax payment which accompanies a return which is
filed timely in accordance with Section 5(a) of this Act. In
each subsequent sale of special fuel on which the amount of tax
imposed under this Act has been collected as provided in this
Section, the amount so collected shall be added to the selling
price, so that the amount of tax is paid ultimately by the user
of the special fuel. However, no collection or payment shall
be made in the case of the sale or use of any special fuel to
the extent to which such sale or use of motor fuel may not,
under the Constitution and statutes of the United States, be
made the subject of taxation by this State.
A person whose license to act as supplier of special fuel
has been revoked shall, at the time of making a return, also
pay to the Department an amount equal to the amount that would
be collectible as a tax in the event of a sale thereof on all
special fuel, which he is required by the 1st paragraph of
Section 5a to report to the Department in making a return.
A supplier may make tax-free sales of special fuel, with
respect to which he is otherwise required to collect the tax,
only as specified in the following items 1 through 7.
1. When the sale is made to the federal government or
its instrumentalities.
2. When the sale is made to a municipal corporation
owning and operating a local transportation system for

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public service in this State when an official certificate
of exemption is obtained in lieu of the tax.
3. When the sale is made to a privately owned public
utility owning and operating 2 axle vehicles designed and
used for transporting more than 7 passengers, which
vehicles are used as common carriers in general
transportation of passengers, are not devoted to any
specialized purpose and are operated entirely within the
territorial limits of a single municipality or of any
group of contiguous municipalities, or in a close radius
thereof, and the operations of which are subject to the
regulations of the Illinois Commerce Commission, when an
official certificate of exemption is obtained in lieu of
the tax.
4. When a sale is made to a person holding a valid
unrevoked license as a supplier or a distributor by making
a specific notation thereof on invoice or sales slip
covering each such sale.
5. When a sale of dyed diesel fuel is made by the
licensed supplier to the end user of the fuel who is not a
licensed distributor or licensed supplier for non-highway
purposes and the fuel is (i) delivered from a vehicle
designed for the specific purpose of such sales and
delivered directly into a stationary bulk storage tank
that displays the notice required by Section 4f of this
Act, (ii) delivered from a vehicle designed for the

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specific purpose of such sales and delivered directly into
the fuel supply tanks of non-highway vehicles that are not
required to be registered for highway use, or (iii)
dispensed from a dyed diesel fuel dispensing facility that
has withdrawal facilities that are not readily accessible
to and are not capable of dispensing dyed diesel fuel into
the fuel supply tank of a motor vehicle.
A specific notation is required on the invoice or
sales slip covering such sales, and any supporting
documentation that may be required by the Department must
be obtained by the supplier. The supplier shall obtain and
keep the supporting documentation in such form as the
Department may require by rule.
For purposes of this item 5, a dyed diesel fuel
dispensing facility is considered to have withdrawal
facilities that are "not readily accessible to and not
capable of dispensing dyed diesel fuel into the fuel
supply tank of a motor vehicle" only if the dyed diesel
fuel is delivered from: (i) a dispenser hose that is short
enough so that it will not reach the fuel supply tank of a
motor vehicle or (ii) a dispenser that is enclosed by a
fence or other physical barrier so that a vehicle cannot
pull alongside the dispenser to permit fueling.
6. (Blank).
7. When a sale of special fuel is made to a person
where delivery is made outside of this State.

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All special fuel sold or used for non-highway purposes
must have a dye added in accordance with Section 4d of this
Law.
All suits or other proceedings brought for the purpose of
recovering any taxes, interest or penalties due the State of
Illinois under this Act may be maintained in the name of the
Department.
(Source: P.A. 102-1019, eff. 5-27-22.)
Section 50. The Telecommunications Excise Tax Act is
amended by changing Section 6 as follows:
(35 ILCS 630/6) (from Ch. 120, par. 2006)
Sec. 6. Returns; payments. Except as provided hereinafter
in this Section, on or before the last day of each month, each
retailer maintaining a place of business in this State shall
make a return to the Department for the preceding calendar
month, stating:
1. His name;
2. The address of his principal place of business, or
the address of the principal place of business (if that is
a different address) from which he engages in the business
of transmitting telecommunications;
3. Total amount of gross charges billed by him during
the preceding calendar month for providing
telecommunications during such calendar month;

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4. Total amount received by him during the preceding
calendar month on credit extended;
5. Deductions allowed by law;
6. Gross charges which were billed by him during the
preceding calendar month and upon the basis of which the
tax is imposed;
7. Amount of tax (computed upon Item 6);
8. Such other reasonable information as the Department
may require.
Any taxpayer required to make payments under this Section
may make the payments by electronic funds transfer. The
Department shall adopt rules necessary to effectuate a program
of electronic funds transfer. Any taxpayer who has average
monthly tax billings due to the Department under this Act and
the Simplified Municipal Telecommunications Tax Act that
exceed $1,000 shall make all payments by electronic funds
transfer as required by rules of the Department and shall file
the return required by this Section by electronic means as
required by rules of the Department.
If the retailer's average monthly tax billings due to the
Department under this Act and the Simplified Municipal
Telecommunications Tax Act do not exceed $1,000, the
Department may authorize his returns to be filed on a quarter
annual basis, with the return for January, February and March
of a given year being due by April 30 of such year; with the
return for April, May and June of a given year being due by

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July 31st of such year; with the return for July, August and
September of a given year being due by October 31st of such
year; and with the return of October, November and December of
a given year being due by January 31st of the following year.
If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
billings due to the Department under this Act and the
Simplified Municipal Telecommunications Tax Act do not exceed
$400, the Department may authorize his or her return to be
filed on an annual basis, with the return for a given year
being due by January 31st of the following year.
Notwithstanding any other provision of this Article
containing the time within which a retailer may file his
return, in the case of any retailer who ceases to engage in a
kind of business which makes him responsible for filing
returns under this Article, such retailer shall file a final
return under this Article with the Department not more than
one month after discontinuing such business.
In making such return, the retailer shall determine the
value of any consideration other than money received by him
and he shall include such value in his return. Such
determination shall be subject to review and revision by the
Department in the manner hereinafter provided for the
correction of returns.
Each retailer whose average monthly liability to the
Department under this Article and the Simplified Municipal

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Telecommunications Tax Act was $25,000 or more during the
preceding calendar year, excluding the month of highest
liability and the month of lowest liability in such calendar
year, and who is not operated by a unit of local government,
shall make estimated payments to the Department on or before
the 7th, 15th, 22nd and last day of the month during which tax
collection liability to the Department is incurred in an
amount not less than the lower of either 22.5% of the
retailer's actual tax collections for the month or 25% of the
retailer's actual tax collections for the same calendar month
of the preceding year. The amount of such quarter monthly
payments shall be credited against the final liability of the
retailer's return for that month. Any outstanding credit,
approved by the Department, arising from the retailer's
overpayment of its final liability for any month may be
applied to reduce the amount of any subsequent quarter monthly
payment or credited against the final liability of the
retailer's return for any subsequent month. If any quarter
monthly payment is not paid at the time or in the amount
required by this Section, the retailer shall be liable for
penalty and interest on the difference between the minimum
amount due as a payment and the amount of such payment actually
and timely paid, except insofar as the retailer has previously
made payments for that month to the Department in excess of the
minimum payments previously due.
The retailer making the return herein provided for shall,

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at the time of making such return, pay to the Department the
amount of tax herein imposed, less a discount of 1% prior to
January 1, 2024 and 2% on and after January 1, 2024 which is
allowed to reimburse the retailer for the expenses incurred in
keeping records, billing the customer, preparing and filing
returns, remitting the tax, and supplying data to the
Department upon request. No discount may be claimed by a
retailer on returns not timely filed and for taxes not timely
remitted. On and after January 1, 2024, in no event shall the
discount allowed to any retailer be more than $1,000 in any
calendar year.
If any payment provided for in this Section exceeds the
retailer's liabilities under this Act, as shown on an original
return, the Department may authorize the retailer to credit
such excess payment against liability subsequently to be
remitted to the Department under this Act, in accordance with
reasonable rules adopted by the Department. If the Department
subsequently determines that all or any part of the credit
taken was not actually due to the retailer, the retailer's
discount shall be reduced by an amount equal to the difference
between the discount as applied to the credit taken and that
actually due, and that retailer shall be liable for penalties
and interest on such difference.
Beginning February 1, 2024, each month the Department
shall pay into the Working Families Fund an amount equal to any
net revenue realized for the preceding month as a result of the

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limit on the vendor's discount of $1,000 annually, net of the
difference between 1% and the vendor's discount of 2%.
On and after the effective date of this Article of 1985, of
the moneys received by the Department of Revenue pursuant to
this Article, other than moneys received pursuant to the
additional taxes imposed by Public Act 90-548 and net of any
amount paid into the Working Families Fund:
(1) $1,000,000 shall be paid each month into the
Common School Fund;
(2) beginning on the first day of the first calendar
month to occur on or after the effective date of this
amendatory Act of the 98th General Assembly, an amount
equal to 1/12 of 5% of the cash receipts collected during
the preceding fiscal year by the Audit Bureau of the
Department from the tax under this Act and the Simplified
Municipal Telecommunications Tax Act shall be paid each
month into the Tax Compliance and Administration Fund;
those moneys shall be used, subject to appropriation, to
fund additional auditors and compliance personnel at the
Department of Revenue; and
(3) the remainder shall be deposited into the General
Revenue Fund.
On and after February 1, 1998, however, of the moneys
received by the Department of Revenue pursuant to the
additional taxes imposed by Public Act 90-548 net of any
amount paid into the Working Families Fund, one-half shall be

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deposited into the School Infrastructure Fund and one-half
shall be deposited into the Common School Fund. On and after
the effective date of this amendatory Act of the 91st General
Assembly, if in any fiscal year the total of the moneys
deposited into the School Infrastructure Fund under this Act
is less than the total of the moneys deposited into that Fund
from the additional taxes imposed by Public Act 90-548 during
fiscal year 1999, then, as soon as possible after the close of
the fiscal year, the Comptroller shall order transferred and
the Treasurer shall transfer from the General Revenue Fund to
the School Infrastructure Fund an amount equal to the
difference between the fiscal year total deposits and the
total amount deposited into the Fund in fiscal year 1999.
(Source: P.A. 100-1171, eff. 1-4-19.)
Section 55. The Liquor Control Act of 1934 is amended by
changing Sections 8-1 and 8-2 as follows:
(235 ILCS 5/8-1)
Sec. 8-1. A tax is imposed upon the privilege of engaging
in business as a manufacturer or as an importing distributor
of alcoholic liquor other than beer at the rate of $0.185 per
gallon until September 1, 2009 and $0.231 per gallon beginning
September 1, 2009 for cider containing not less than 0.5%
alcohol by volume nor more than 7% alcohol by volume, $0.73 per
gallon until September 1, 2009 and $1.39 per gallon beginning

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September 1, 2009 for wine other than cider containing less
than 7% alcohol by volume, and $4.50 per gallon until
September 1, 2009 and $8.55 per gallon beginning September 1,
2009 on alcohol and spirits manufactured and sold or used by
such manufacturer, or as agent for any other person, or sold or
used by such importing distributor, or as agent for any other
person. A tax is imposed upon the privilege of engaging in
business as a manufacturer of beer or as an importing
distributor of beer at the rate of $0.185 per gallon until
September 1, 2009 and $0.231 per gallon beginning September 1,
2009 on all beer, regardless of alcohol by volume,
manufactured and sold or used by such manufacturer, or as
agent for any other person, or sold or used by such importing
distributor, or as agent for any other person. Any brewer
manufacturing beer in this State shall be entitled to and
given a credit or refund of 75% of the tax imposed on each
gallon of beer up to 4.9 million gallons per year in any given
calendar year for tax paid or payable on beer produced and sold
in the State of Illinois.
For purposes of this Section, "beer" means beer, ale,
porter, stout, and other similar fermented beverages of any
name or description containing one-half of one percent or more
of alcohol by volume, brewed or produced from malt, wholly or
in part, or from any substitute for malt.
For the purpose of this Section, "cider" means any
alcoholic beverage obtained by the alcohol fermentation of the

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juice of apples or pears including, but not limited to,
flavored, sparkling, or carbonated cider.
The credit or refund created by this Act shall apply to all
beer taxes in the calendar years 1982 through 1986.
The increases made by this amendatory Act of the 91st
General Assembly in the rates of taxes imposed under this
Section shall apply beginning on July 1, 1999.
A tax at the rate of 1¢ per gallon on beer and 48¢ per
gallon on alcohol and spirits is also imposed upon the
privilege of engaging in business as a retailer or as a
distributor who is not also an importing distributor with
respect to all beer and all alcohol and spirits owned or
possessed by such retailer or distributor when this amendatory
Act of 1969 becomes effective, and with respect to which the
additional tax imposed by this amendatory Act upon
manufacturers and importing distributors does not apply.
Retailers and distributors who are subject to the additional
tax imposed by this paragraph of this Section shall be
required to inventory such alcoholic liquor and to pay this
additional tax in a manner prescribed by the Department.
The provisions of this Section shall be construed to apply
to any importing distributor engaging in business in this
State, whether licensed or not.
However, such tax is not imposed upon any such business as
to any alcoholic liquor shipped outside Illinois by an
Illinois licensed manufacturer or importing distributor, nor

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as to any alcoholic liquor delivered in Illinois by an
Illinois licensed manufacturer or importing distributor to a
purchaser for immediate transportation by the purchaser to
another state into which the purchaser has a legal right,
under the laws of such state, to import such alcoholic liquor,
nor as to any alcoholic liquor other than beer sold by one
Illinois licensed manufacturer or importing distributor to
another Illinois licensed manufacturer or importing
distributor to the extent to which the sale of alcoholic
liquor other than beer by one Illinois licensed manufacturer
or importing distributor to another Illinois licensed
manufacturer or importing distributor is authorized by the
licensing provisions of this Act, nor to alcoholic liquor
whether manufactured in or imported into this State when sold
to a "non-beverage user" licensed by the State for use in the
manufacture of any of the following when they are unfit for
beverage purposes:
Patent and proprietary medicines and medicinal,
antiseptic, culinary and toilet preparations;
Flavoring extracts and syrups and food products;
Scientific, industrial and chemical products, excepting
denatured alcohol;
Or for scientific, chemical, experimental or mechanical
purposes;
Nor is the tax imposed upon the privilege of engaging in
any business in interstate commerce or otherwise, which

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business may not, under the Constitution and Statutes of the
United States, be made the subject of taxation by this State.
The tax herein imposed shall be in addition to all other
occupation or privilege taxes imposed by the State of Illinois
or political subdivision thereof.
If any alcoholic liquor manufactured in or imported into
this State is sold to a licensed manufacturer or importing
distributor by a licensed manufacturer or importing
distributor to be used solely as an ingredient in the
manufacture of any beverage for human consumption, the tax
imposed upon such purchasing manufacturer or importing
distributor shall be reduced by the amount of the taxes which
have been paid by the selling manufacturer or importing
distributor under this Act as to such alcoholic liquor so used
to the Department of Revenue.
If any person received any alcoholic liquors from a
manufacturer or importing distributor, with respect to which
alcoholic liquors no tax is imposed under this Article, and
such alcoholic liquor shall thereafter be disposed of in such
manner or under such circumstances as may cause the same to
become the base for the tax imposed by this Article, such
person shall make the same reports and returns, pay the same
taxes and be subject to all other provisions of this Article
relating to manufacturers and importing distributors.
Nothing in this Article shall be construed to require the
payment to the Department of the taxes imposed by this Article

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more than once with respect to any quantity of alcoholic
liquor sold or used within this State.
No tax is imposed by this Act on sales of alcoholic liquor
by Illinois licensed foreign importers to Illinois licensed
importing distributors.
Beginning February 1, 2024, each month the Department
shall pay into the Working Families Fund an amount equal to any
net proceeds for the preceding month as a result of changes in
this amendatory Act of the 103rd General Assembly to the
discount allowed to distributors under Section 8-2 this Act.
All of the proceeds of the additional tax imposed by Public Act
96-34 net of any portion paid into the Working Families Fund
shall be deposited by the Department into the Capital Projects
Fund. The remainder of the tax imposed by this Act shall be
deposited by the Department into the General Revenue Fund.
A manufacturer of beer that imports or transfers beer into
this State must comply with the provisions of this Section
with regard to the beer imported into this State.
The provisions of this Section 8-1 are severable under
Section 1.31 of the Statute on Statutes.
(Source: P.A. 100-885, eff. 8-14-18; 101-16, eff. 6-14-19.)
(235 ILCS 5/8-2) (from Ch. 43, par. 159)
Sec. 8-2. Payments; reports. It is the duty of each
manufacturer with respect to alcoholic liquor produced or
imported by such manufacturer, or purchased tax-free by such

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manufacturer from another manufacturer or importing
distributor, and of each importing distributor as to alcoholic
liquor purchased by such importing distributor from foreign
importers or from anyone from any point in the United States
outside of this State or purchased tax-free from another
manufacturer or importing distributor, to pay the tax imposed
by Section 8-1 to the Department of Revenue on or before the
15th day of the calendar month following the calendar month in
which such alcoholic liquor is sold or used by such
manufacturer or by such importing distributor other than in an
authorized tax-free manner or to pay that tax electronically
as provided in this Section.
Each manufacturer and each importing distributor shall
make payment under one of the following methods: (1) on or
before the 15th day of each calendar month, file in person or
by United States first-class mail, postage pre-paid, with the
Department of Revenue, on forms prescribed and furnished by
the Department, a report in writing in such form as may be
required by the Department in order to compute, and assure the
accuracy of, the tax due on all taxable sales and uses of
alcoholic liquor occurring during the preceding month. Payment
of the tax in the amount disclosed by the report shall
accompany the report or, (2) on or before the 15th day of each
calendar month, electronically file with the Department of
Revenue, on forms prescribed and furnished by the Department,
an electronic report in such form as may be required by the

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Department in order to compute, and assure the accuracy of,
the tax due on all taxable sales and uses of alcoholic liquor
occurring during the preceding month. An electronic payment of
the tax in the amount disclosed by the report shall accompany
the report. A manufacturer or distributor who files an
electronic report and electronically pays the tax imposed
pursuant to Section 8-1 to the Department of Revenue on or
before the 15th day of the calendar month following the
calendar month in which such alcoholic liquor is sold or used
by that manufacturer or importing distributor other than in an
authorized tax-free manner shall pay to the Department the
amount of the tax imposed pursuant to Section 8-1, less a
discount which is allowed to reimburse the manufacturer or
importing distributor for the expenses incurred in keeping and
maintaining records, preparing and filing the electronic
returns, remitting the tax, and supplying data to the
Department upon request.
The discount shall be in an amount as follows:
(1) For original returns due on or after January 1,
2003 through September 30, 2003, the discount shall be
1.75% or $1,250 per return, whichever is less;
(2) For original returns due on or after October 1,
2003 through September 30, 2004, the discount shall be 2%
or $3,000 per return, whichever is less; and
(3) For original returns due on or after October 1,
2004, the discount shall be 2% or $2,000 per return,

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whichever is less; and .
(4) For original returns due on or after January 1,
2024, 2% of the proceeds collected during the calendar
year; however, on and after January 1, 2024, in no event
shall the discount allowed to any manufacturer or
distributor be less than $5 in any calendar year or more
than $1,000 in any calendar year.
The Department may, if it deems it necessary in order to
insure the payment of the tax imposed by this Article, require
returns to be made more frequently than and covering periods
of less than a month. Such return shall contain such further
information as the Department may reasonably require.
It shall be presumed that all alcoholic liquors acquired
or made by any importing distributor or manufacturer have been
sold or used by him in this State and are the basis for the tax
imposed by this Article unless proven, to the satisfaction of
the Department, that such alcoholic liquors are (1) still in
the possession of such importing distributor or manufacturer,
or (2) prior to the termination of possession have been lost by
theft or through unintentional destruction, or (3) that such
alcoholic liquors are otherwise exempt from taxation under
this Act.
If any payment provided for in this Section exceeds the
manufacturer's or importing distributor's liabilities under
this Act, as shown on an original report, the manufacturer or
importing distributor may credit such excess payment against

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liability subsequently to be remitted to the Department under
this Act, in accordance with reasonable rules adopted by the
Department. If the Department subsequently determines that all
or any part of the credit taken was not actually due to the
manufacturer or importing distributor, the manufacturer's or
importing distributor's discount shall be reduced by an amount
equal to the difference between the discount as applied to the
credit taken and that actually due, and the manufacturer or
importing distributor shall be liable for penalties and
interest on such difference.
The Department may require any foreign importer to file
monthly information returns, by the 15th day of the month
following the month which any such return covers, if the
Department determines this to be necessary to the proper
performance of the Department's functions and duties under
this Act. Such return shall contain such information as the
Department may reasonably require.
Every manufacturer and importing distributor, except for a
manufacturer or importing distributor that in the preceding
year had less than $50,000 of tax liability under this
Article, shall also file, with the Department, a bond in an
amount not less than $1,000 and not to exceed $100,000 on a
form to be approved by, and with a surety or sureties
satisfactory to, the Department. Such bond shall be
conditioned upon the manufacturer or importing distributor
paying to the Department all monies becoming due from such

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manufacturer or importing distributor under this Article. The
Department shall fix the penalty of such bond in each case,
taking into consideration the amount of alcoholic liquor
expected to be sold and used by such manufacturer or importing
distributor, and the penalty fixed by the Department shall be
sufficient, in the Department's opinion, to protect the State
of Illinois against failure to pay any amount due under this
Article, but the amount of the penalty fixed by the Department
shall not exceed twice the amount of tax liability of a monthly
return, nor shall the amount of such penalty be less than
$1,000. The Department shall notify the State Commission of
the Department's approval or disapproval of any such
manufacturer's or importing distributor's bond, or of the
termination or cancellation of any such bond, or of the
Department's direction to a manufacturer or importing
distributor that he must file additional bond in order to
comply with this Section. The Commission shall not issue a
license to any applicant for a manufacturer's or importing
distributor's license unless the Commission has received a
notification from the Department showing that such applicant
has filed a satisfactory bond with the Department hereunder
and that such bond has been approved by the Department.
Failure by any licensed manufacturer or importing distributor
to keep a satisfactory bond in effect with the Department or to
furnish additional bond to the Department, when required
hereunder by the Department to do so, shall be grounds for the

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revocation or suspension of such manufacturer's or importing
distributor's license by the Commission. If a manufacturer or
importing distributor fails to pay any amount due under this
Article, his bond with the Department shall be deemed
forfeited, and the Department may institute a suit in its own
name on such bond.
After notice and opportunity for a hearing the State
Commission may revoke or suspend the license of any
manufacturer or importing distributor who fails to comply with
the provisions of this Section. Notice of such hearing and the
time and place thereof shall be in writing and shall contain a
statement of the charges against the licensee. Such notice may
be given by United States registered or certified mail with
return receipt requested, addressed to the person concerned at
his last known address and shall be given not less than 7 days
prior to the date fixed for the hearing. An order revoking or
suspending a license under the provisions of this Section may
be reviewed in the manner provided in Section 7-10 of this Act.
No new license shall be granted to a person whose license has
been revoked for a violation of this Section or, in case of
suspension, shall such suspension be terminated until he has
paid to the Department all taxes and penalties which he owes
the State under the provisions of this Act.
Every manufacturer or importing distributor who has, as
verified by the Department, continuously complied with the
conditions of the bond under this Act for a period of 2 years

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shall be considered to be a prior continuous compliance
taxpayer. In determining the consecutive period of time for
qualification as a prior continuous compliance taxpayer, any
consecutive period of time of qualifying compliance
immediately prior to the effective date of this amendatory Act
of 1987 shall be credited to any manufacturer or importing
distributor.
A manufacturer or importing distributor that is a prior
continuous compliance taxpayer under this Section and becomes
a successor as the result of an acquisition, merger, or
consolidation of a manufacturer or importing distributor shall
be deemed to be a prior continuous compliance taxpayer with
respect to the acquired, merged, or consolidated entity.
Every prior continuous compliance taxpayer shall be exempt
from the bond requirements of this Act until the Department
has determined the taxpayer to be delinquent in the filing of
any return or deficient in the payment of any tax under this
Act. Any taxpayer who fails to pay an admitted or established
liability under this Act may also be required to post bond or
other acceptable security with the Department guaranteeing the
payment of such admitted or established liability.
The Department shall discharge any surety and shall
release and return any bond or security deposit assigned,
pledged or otherwise provided to it by a taxpayer under this
Section within 30 days after: (1) such taxpayer becomes a
prior continuous compliance taxpayer; or (2) such taxpayer has

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ceased to collect receipts on which he is required to remit tax
to the Department, has filed a final tax return, and has paid
to the Department an amount sufficient to discharge his
remaining tax liability as determined by the Department under
this Act.
(Source: P.A. 100-1171, eff. 1-4-19; 101-37, eff. 7-3-19.)
Section 99. Effective date. This Act takes effect upon
becoming law.