Illinois-2023-HB4114-Introduced

103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB4114

Introduced , by Rep. Kevin Schmidt

SYNOPSIS AS INTRODUCED:

`30 ILCS 105/6z-18`	`from Ch. 127, par. 142z-18`
`30 ILCS 105/6z-20`	`from Ch. 127, par. 142z-20`
`35 ILCS 105/3-6`
`35 ILCS 105/3-10`
`35 ILCS 105/9`	`from Ch. 120, par. 439.9`
`35 ILCS 120/2-8`
`35 ILCS 120/2-10`
`35 ILCS 120/3`	`from Ch. 120, par. 442`

Amends the Use Tax Act and the Retailers' Occupation Tax Act. Creates a sales tax holiday period for certain school supplies from August 2, 2024 through August 11, 2024.Effective immediately.

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A BILL FOR

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1 AN ACT concerning revenue.

2 Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4 Section 5. The State Finance Act is amended by changing

5 Sections 6z-18 and 6z-20 as follows:

6 (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)

7 Sec. 6z-18. Local Government Tax Fund. A portion of the

8 money paid into the Local Government Tax Fund from sales of

9 tangible personal property taxed at the 1% rate under the

10 Retailers' Occupation Tax Act and the Service Occupation Tax

11 Act, which occurred in municipalities, shall be distributed to

12 each municipality based upon the sales which occurred in that

13 municipality. The remainder shall be distributed to each

14 county based upon the sales which occurred in the

15 unincorporated area of that county.

16 Moneys transferred from the Grocery Tax Replacement Fund

17 to the Local Government Tax Fund under Section 6z-130 shall be

18 treated under this Section in the same manner as if they had

19 been remitted with the return on which they were reported.

20 A portion of the money paid into the Local Government Tax

21 Fund from the 6.25% general use tax rate on the selling price

22 of tangible personal property which is purchased outside

23 Illinois at retail from a retailer and which is titled or

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1 registered by any agency of this State's government shall be

2 distributed to municipalities as provided in this paragraph.

3 Each municipality shall receive the amount attributable to

4 sales for which Illinois addresses for titling or registration

5 purposes are given as being in such municipality. The

6 remainder of the money paid into the Local Government Tax Fund

7 from such sales shall be distributed to counties. Each county

8 shall receive the amount attributable to sales for which

9 Illinois addresses for titling or registration purposes are

10 given as being located in the unincorporated area of such

11 county.

12 A portion of the money paid into the Local Government Tax

13 Fund from the 6.25% general rate (and, beginning July 1, 2000

14 and through December 31, 2000, the 1.25% rate on motor fuel and

15 gasohol, and during the sales tax holiday period, as defined

16 in Section 3-6 of the Use Tax Act and Section 2-8 of the

17 Retailers' Occupation Tax Act, ~~beginning on August 6, 2010~~

18 ~~through August 15, 2010, and beginning again on August 5, 2022~~

19 ~~through August 14, 2022,~~ the 1.25% rate on sales tax holiday

20 items) on sales subject to taxation under the Retailers'

21 Occupation Tax Act and the Service Occupation Tax Act, which

22 occurred in municipalities, shall be distributed to each

23 municipality, based upon the sales which occurred in that

24 municipality. The remainder shall be distributed to each

25 county, based upon the sales which occurred in the

26 unincorporated area of such county.

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1 For the purpose of determining allocation to the local

2 government unit, a retail sale by a producer of coal or other

3 mineral mined in Illinois is a sale at retail at the place

4 where the coal or other mineral mined in Illinois is extracted

5 from the earth. This paragraph does not apply to coal or other

6 mineral when it is delivered or shipped by the seller to the

7 purchaser at a point outside Illinois so that the sale is

8 exempt under the United States Constitution as a sale in

9 interstate or foreign commerce.

10 Whenever the Department determines that a refund of money

11 paid into the Local Government Tax Fund should be made to a

12 claimant instead of issuing a credit memorandum, the

13 Department shall notify the State Comptroller, who shall cause

14 the order to be drawn for the amount specified, and to the

15 person named, in such notification from the Department. Such

16 refund shall be paid by the State Treasurer out of the Local

17 Government Tax Fund.

18 As soon as possible after the first day of each month,

19 beginning January 1, 2011, upon certification of the

20 Department of Revenue, the Comptroller shall order

21 transferred, and the Treasurer shall transfer, to the STAR

22 Bonds Revenue Fund the local sales tax increment, as defined

23 in the Innovation Development and Economy Act, collected

24 during the second preceding calendar month for sales within a

25 STAR bond district and deposited into the Local Government Tax

26 Fund, less 3% of that amount, which shall be transferred into

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1 the Tax Compliance and Administration Fund and shall be used

2 by the Department, subject to appropriation, to cover the

3 costs of the Department in administering the Innovation

4 Development and Economy Act.

5 After the monthly transfer to the STAR Bonds Revenue Fund,

6 on or before the 25th day of each calendar month, the

7 Department shall prepare and certify to the Comptroller the

8 disbursement of stated sums of money to named municipalities

9 and counties, the municipalities and counties to be those

10 entitled to distribution of taxes or penalties paid to the

11 Department during the second preceding calendar month. The

12 amount to be paid to each municipality or county shall be the

13 amount (not including credit memoranda) collected during the

14 second preceding calendar month by the Department and paid

15 into the Local Government Tax Fund, plus an amount the

16 Department determines is necessary to offset any amounts which

17 were erroneously paid to a different taxing body, and not

18 including an amount equal to the amount of refunds made during

19 the second preceding calendar month by the Department, and not

20 including any amount which the Department determines is

21 necessary to offset any amounts which are payable to a

22 different taxing body but were erroneously paid to the

23 municipality or county, and not including any amounts that are

24 transferred to the STAR Bonds Revenue Fund. Within 10 days

25 after receipt, by the Comptroller, of the disbursement

26 certification to the municipalities and counties, provided for

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1 in this Section to be given to the Comptroller by the

2 Department, the Comptroller shall cause the orders to be drawn

3 for the respective amounts in accordance with the directions

4 contained in such certification.

5 When certifying the amount of monthly disbursement to a

6 municipality or county under this Section, the Department

7 shall increase or decrease that amount by an amount necessary

8 to offset any misallocation of previous disbursements. The

9 offset amount shall be the amount erroneously disbursed within

10 the 6 months preceding the time a misallocation is discovered.

11 The provisions directing the distributions from the

12 special fund in the Statetreasury ~~Treasury~~ provided for in

13 this Section shall constitute an irrevocable and continuing

14 appropriation of all amounts as provided herein. The State

15 Treasurer and State Comptroller are hereby authorized to make

16 distributions as provided in this Section.

17 In construing any development, redevelopment, annexation,

18 preannexation,or other lawful agreement in effect prior to

19 September 1, 1990, which describes or refers to receipts from

20 a county or municipal retailers' occupation tax, use tax or

21 service occupation tax which now cannot be imposed, such

22 description or reference shall be deemed to include the

23 replacement revenue for such abolished taxes, distributed from

24 the Local Government Tax Fund.

25 As soon as possible after March 8, 2013 (the effective

26 date of Public Act 98-3) ~~this amendatory Act of the 98th~~

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1 ~~General Assembly~~, the State Comptroller shall order and the

2 State Treasurer shall transfer $6,600,000 from the Local

3 Government Tax Fund to the Illinois State Medical Disciplinary

4 Fund.

5 (Source: P.A. 102-700, Article 60, Section 60-10, eff.

6 4-19-22; 102-700, Article 65, Section 65-15, eff. 4-19-22;

7 revised 6-2-22.)

8 (30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20)

9 Sec. 6z-20. County and Mass Transit District Fund. Of the

10 money received from the 6.25% general rate (and, beginning

11 July 1, 2000 and through December 31, 2000, the 1.25% rate on

12 motor fuel and gasohol, and during the sales tax holiday

13 period, as defined in Section 3-6 of the Use Tax Act and

14 Section 2-8 of the Retailers' Occupation Tax Act ~~beginning on~~

15 ~~August 6, 2010 through August 15, 2010, and beginning again on~~

16 ~~August 5, 2022 through August 14, 2022~~, the 1.25% rate on sales

17 tax holiday items) on sales subject to taxation under the

18 Retailers' Occupation Tax Act and Service Occupation Tax Act

19 and paid into the County and Mass Transit District Fund,

20 distribution to the Regional Transportation Authority tax

21 fund, created pursuant to Section 4.03 of the Regional

22 Transportation Authority Act, for deposit therein shall be

23 made based upon the retail sales occurring in a county having

24 more than 3,000,000 inhabitants. The remainder shall be

25 distributed to each county having 3,000,000 or fewer

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1 inhabitants based upon the retail sales occurring in each such

2 county.

3 For the purpose of determining allocation to the local

4 government unit, a retail sale by a producer of coal or other

5 mineral mined in Illinois is a sale at retail at the place

6 where the coal or other mineral mined in Illinois is extracted

7 from the earth. This paragraph does not apply to coal or other

8 mineral when it is delivered or shipped by the seller to the

9 purchaser at a point outside Illinois so that the sale is

10 exempt under the United States Constitution as a sale in

11 interstate or foreign commerce.

12 Of the money received from the 6.25% general use tax rate

13 on tangible personal property which is purchased outside

14 Illinois at retail from a retailer and which is titled or

15 registered by any agency of this State's government and paid

16 into the County and Mass Transit District Fund, the amount for

17 which Illinois addresses for titling or registration purposes

18 are given as being in each county having more than 3,000,000

19 inhabitants shall be distributed into the Regional

20 Transportation Authority tax fund, created pursuant to Section

21 4.03 of the Regional Transportation Authority Act. The

22 remainder of the money paid from such sales shall be

23 distributed to each county based on sales for which Illinois

24 addresses for titling or registration purposes are given as

25 being located in the county. Any money paid into the Regional

26 Transportation Authority Occupation and Use Tax Replacement

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1 Fund from the County and Mass Transit District Fund prior to

2 January 14, 1991, which has not been paid to the Authority

3 prior to that date, shall be transferred to the Regional

4 Transportation Authority tax fund.

5 Whenever the Department determines that a refund of money

6 paid into the County and Mass Transit District Fund should be

7 made to a claimant instead of issuing a credit memorandum, the

8 Department shall notify the State Comptroller, who shall cause

9 the order to be drawn for the amount specified, and to the

10 person named, in such notification from the Department. Such

11 refund shall be paid by the State Treasurer out of the County

12 and Mass Transit District Fund.

13 As soon as possible after the first day of each month,

14 beginning January 1, 2011, upon certification of the

15 Department of Revenue, the Comptroller shall order

16 transferred, and the Treasurer shall transfer, to the STAR

17 Bonds Revenue Fund the local sales tax increment, as defined

18 in the Innovation Development and Economy Act, collected

19 during the second preceding calendar month for sales within a

20 STAR bond district and deposited into the County and Mass

21 Transit District Fund, less 3% of that amount, which shall be

22 transferred into the Tax Compliance and Administration Fund

23 and shall be used by the Department, subject to appropriation,

24 to cover the costs of the Department in administering the

25 Innovation Development and Economy Act.

26 After the monthly transfer to the STAR Bonds Revenue Fund,

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1 on or before the 25th day of each calendar month, the

2 Department shall prepare and certify to the Comptroller the

3 disbursement of stated sums of money to the Regional

4 Transportation Authority and to named counties, the counties

5 to be those entitled to distribution, as hereinabove provided,

6 of taxes or penalties paid to the Department during the second

7 preceding calendar month. The amount to be paid to the

8 Regional Transportation Authority and each county having

9 3,000,000 or fewer inhabitants shall be the amount (not

10 including credit memoranda) collected during the second

11 preceding calendar month by the Department and paid into the

12 County and Mass Transit District Fund, plus an amount the

13 Department determines is necessary to offset any amounts which

14 were erroneously paid to a different taxing body, and not

15 including an amount equal to the amount of refunds made during

16 the second preceding calendar month by the Department, and not

17 including any amount which the Department determines is

18 necessary to offset any amounts which were payable to a

19 different taxing body but were erroneously paid to the

20 Regional Transportation Authority or county, and not including

21 any amounts that are transferred to the STAR Bonds Revenue

22 Fund, less 1.5% of the amount to be paid to the Regional

23 Transportation Authority, which shall be transferred into the

24 Tax Compliance and Administration Fund. The Department, at the

25 time of each monthly disbursement to the Regional

26 Transportation Authority, shall prepare and certify to the

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1 State Comptroller the amount to be transferred into the Tax

2 Compliance and Administration Fund under this Section. Within

3 10 days after receipt, by the Comptroller, of the disbursement

4 certification to the Regional Transportation Authority,

5 counties, and the Tax Compliance and Administration Fund

6 provided for in this Section to be given to the Comptroller by

7 the Department, the Comptroller shall cause the orders to be

8 drawn for the respective amounts in accordance with the

9 directions contained in such certification.

10 When certifying the amount of a monthly disbursement to

11 the Regional Transportation Authority or to a county under

12 this Section, the Department shall increase or decrease that

13 amount by an amount necessary to offset any misallocation of

14 previous disbursements. The offset amount shall be the amount

15 erroneously disbursed within the 6 months preceding the time a

16 misallocation is discovered.

17 The provisions directing the distributions from the

18 special fund in the State Treasury provided for in this

19 Section and from the Regional Transportation Authority tax

20 fund created by Section 4.03 of the Regional Transportation

21 Authority Act shall constitute an irrevocable and continuing

22 appropriation of all amounts as provided herein. The State

23 Treasurer and State Comptroller are hereby authorized to make

24 distributions as provided in this Section.

25 In construing any development, redevelopment, annexation,

26 preannexation or other lawful agreement in effect prior to

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1 September 1, 1990, which describes or refers to receipts from

2 a county or municipal retailers' occupation tax, use tax or

3 service occupation tax which now cannot be imposed, such

4 description or reference shall be deemed to include the

5 replacement revenue for such abolished taxes, distributed from

6 the County and Mass Transit District Fund or Local Government

7 Distributive Fund, as the case may be.

8 (Source: P.A. 102-700, eff. 4-19-22.)

9 Section 10. The Use Tax Act is amended by changing

10 Sections 3-6, 3-10, and 9 as follows:

11 (35 ILCS 105/3-6)

12 Sec. 3-6. Sales tax holiday items.

13 (a) Any tangible personal property described in this

14 subsection is a sales tax holiday item and qualifies for the

15 1.25% reduced rate of tax during the sales tax holiday period

16 ~~for the period set forth in Section 3-10 of this Act~~

17 ~~(hereinafter referred to as the Sales Tax Holiday Period)~~. The

18 reduced rate on these items shall be administered under the

19 provisions of subsection (b) of this Section. The following

20 items are subject to the reduced rate:

21 (1) Clothing items that each have a retail selling

22 price of less than $125.

23 "Clothing" means, unless otherwise specified in this

24 Section, all human wearing apparel suitable for general

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1 use. "Clothing" does not include clothing accessories,

2 protective equipment, or sport or recreational equipment.

3 "Clothing" includes, but is not limited to: household and

4 shop aprons; athletic supporters; bathing suits and caps;

5 belts and suspenders; boots; coats and jackets; ear muffs;

6 footlets; gloves and mittens for general use; hats and

7 caps; hosiery; insoles for shoes; lab coats; neckties;

8 overshoes; pantyhose; rainwear; rubber pants; sandals;

9 scarves; shoes and shoelaces; slippers; sneakers; socks

10 and stockings; steel-toed shoes; underwear; and school

11 uniforms.

12 "Clothing accessories" means, but is not limited to:

13 briefcases; cosmetics; hair notions, including, but not

14 limited to barrettes, hair bows, and hair nets; handbags;

15 handkerchiefs; jewelry; non-prescription sunglasses;

16 umbrellas; wallets; watches; and wigs and hair pieces.

17 "Protective equipment" means, but is not limited to:

18 breathing masks; clean room apparel and equipment; ear and

19 hearing protectors; face shields; hard hats; helmets;

20 paint or dust respirators; protective gloves; safety

21 glasses and goggles; safety belts; tool belts; and

22 welder's gloves and masks.

23 "Sport or recreational equipment" means, but is not

24 limited to: ballet and tap shoes; cleated or spiked

25 athletic shoes; gloves, including, but not limited to,

26 baseball, bowling, boxing, hockey, and golf gloves;

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1 goggles; hand and elbow guards; life preservers and vests;

2 mouth guards; roller and ice skates; shin guards; shoulder

3 pads; ski boots; waders; and wetsuits and fins.

4 (2) School supplies. "School supplies" means, unless

5 otherwise specified in this Section, items used by a

6 student in a course of study. The purchase of school

7 supplies for use by persons other than students for use in

8 a course of study are not eligible for the reduced rate of

9 tax. "School supplies" do not include school art supplies;

10 school instructional materials; cameras; film and memory

11 cards; videocameras, tapes, and videotapes; computers;

12 cell phones; Personal Digital Assistants (PDAs); handheld

13 electronic schedulers; and school computer supplies.

14 "School supplies" includes, but is not limited to:

15 binders; book bags; calculators; cellophane tape;

16 blackboard chalk; compasses; composition books; crayons;

17 erasers; expandable, pocket, plastic, and manila folders;

18 glue, paste, and paste sticks; highlighters; index cards;

19 index card boxes; legal pads; lunch boxes; markers;

20 notebooks; paper, including loose leaf ruled notebook

21 paper, copy paper, graph paper, tracing paper, manila

22 paper, colored paper, poster board, and construction

23 paper; pencils; pencil leads; pens; ink and ink refills

24 for pens; pencil boxes and other school supply boxes;

25 pencil sharpeners; protractors; rulers; scissors; and

26 writing tablets.

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1 "School art supply" means an item commonly used by a

2 student in a course of study for artwork and includes only

3 the following items: clay and glazes; acrylic, tempera,

4 and oil paint; paintbrushes for artwork; sketch and

5 drawing pads; and watercolors.

6 "School instructional material" means written material

7 commonly used by a student in a course of study as a

8 reference and to learn the subject being taught and

9 includes only the following items: reference books;

10 reference maps and globes; textbooks; and workbooks.

11 "School computer supply" means an item commonly used

12 by a student in a course of study in which a computer is

13 used and applies only to the following items: flashdrives

14 and other computer data storage devices; data storage

15 media, such as diskettes and compact disks; boxes and

16 cases for disk storage; external ports or drives; computer

17 cases; computer cables; computer printers; and printer

18 cartridges, toner, and ink.

19 (b) Administration. Notwithstanding any other provision of

20 this Act, the reduced rate of tax under Section 3-10 of this

21 Act for clothing and school supplies shall be administered by

22 the Department under the provisions of this subsection (b).

23 (1) Bundled sales. Items that qualify for the reduced

24 rate of tax that are bundled together with items that do

25 not qualify for the reduced rate of tax and that are sold

26 for one itemized price will be subject to the reduced rate

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1 of tax only if the value of the items that qualify for the

2 reduced rate of tax exceeds the value of the items that do

3 not qualify for the reduced rate of tax.

4 (2) Coupons and discounts. An unreimbursed discount by

5 the seller reduces the sales price of the property so that

6 the discounted sales price determines whether the sales

7 price is within a sales tax holiday price threshold. A

8 coupon or other reduction in the sales price is treated as

9 a discount if the seller is not reimbursed for the coupon

10 or reduction amount by a third party.

11 (3) Splitting of items normally sold together.

12 Articles that are normally sold as a single unit must

13 continue to be sold in that manner. Such articles cannot

14 be priced separately and sold as individual items in order

15 to obtain the reduced rate of tax. For example, a pair of

16 shoes cannot have each shoe sold separately so that the

17 sales price of each shoe is within a sales tax holiday

18 price threshold.

19 (4) Rain checks. A rain check is a procedure that

20 allows a customer to purchase an item at a certain price at

21 a later time because the particular item was out of stock.

22 Eligible property that customers purchase during the sales

23 tax holiday period ~~Sales Tax Holiday Period~~with the use

24 of a rain check will qualify for the reduced rate of tax

25 regardless of when the rain check was issued. Issuance of

26 a rain check during the sales tax holiday period ~~Sales Tax~~

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1 ~~Holiday Period~~ will not qualify eligible property for the

2 reduced rate of tax if the property is actually purchased

3 after the sales tax holiday period ~~Sales Tax Holiday~~

4 ~~Period~~.

5 (5) Exchanges. The procedure for an exchange in

6 regards to a sales tax holiday is as follows:

7 (A) If a customer purchases an item of eligible

8 property during the sales tax holiday period ~~Sales Tax~~

9 ~~Holiday Period~~, but later exchanges the item for a

10 similar eligible item, even if a different size,

11 different color, or other feature, no additional tax

12 is due even if the exchange is made after thesales tax

13 holiday period ~~Sales Tax Holiday Period~~.

14 (B) If a customer purchases an item of eligible

15 property during the sales tax holiday period ~~Sales Tax~~

16 ~~Holiday Period~~, but after the sales tax holiday period

17 ~~Sales Tax Holiday Period~~has ended, the customer

18 returns the item and receives credit on the purchase

19 of a different item, the 6.25% general merchandise

20 sales tax rate is due on the sale of the newly

21 purchased item.

22 (C) If a customer purchases an item of eligible

23 property before the sales tax holiday period ~~Sales Tax~~

24 ~~Holiday Period~~, but during the sales tax holiday

25 period ~~Sales Tax Holiday Period~~the customer returns

26 the item and receives credit on the purchase of a

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1 different item of eligible property, the reduced rate

2 of tax is due on the sale of the new item if the new

3 item is purchased during the sales tax holiday period

4 ~~Sales Tax Holiday Period~~.

5 (6) (Blank).

6 (7) Order date and back orders. For the purpose of a

7 sales tax holiday, eligible property qualifies for the

8 reduced rate of tax if: (i) the item is both delivered to

9 and paid for by the customer during the sales tax holiday

10 period ~~Sales Tax Holiday Period~~ or (ii) the customer

11 orders and pays for the item and the seller accepts the

12 order during thesales tax holiday period ~~Sales Tax~~

13 ~~Holiday Period~~for immediate shipment, even if delivery is

14 made after the sales tax holiday period ~~Sales Tax Holiday~~

15 ~~Period~~. The seller accepts an order when the seller has

16 taken action to fill the order for immediate shipment.

17 Actions to fill an order include placement of an "in date"

18 stamp on an order or assignment of an "order number" to an

19 order within thesales tax holiday period ~~Sales Tax~~

20 ~~Holiday Period~~. An order is for immediate shipment when

21 the customer does not request delayed shipment. An order

22 is for immediate shipment notwithstanding that the

23 shipment may be delayed because of a backlog of orders or

24 because stock is currently unavailable to, or on back

25 order by, the seller.

26 (8) Returns. For a 60-day period immediately after the

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1 sales tax holiday period ~~Sales Tax Holiday Period~~, if a

2 customer returns an item that would qualify for the

3 reduced rate of tax, credit for or refund of sales tax

4 shall be given only at the reduced rate unless the

5 customer provides a receipt or invoice that shows tax was

6 paid at the 6.25% general merchandise rate, or the seller

7 has sufficient documentation to show that tax was paid at

8 the 6.25% general merchandise rate on the specific item.

9 This 60-day period is set solely for the purpose of

10 designating a time period during which the customer must

11 provide documentation that shows that the appropriate

12 sales tax rate was paid on returned merchandise. The

13 60-day period is not intended to change a seller's policy

14 on the time period during which the seller will accept

15 returns.

16 (b-5) As used in this Section, "sales tax holiday period"

17 means:

18 (1) from August 6, 2010 through August 15, 2010;

19 (2) from August 5, 2022 through August 14, 2022; and

20 (3) from August 2, 2024 through August 11, 2024.

21 (c) The Department may implement the provisions of this

22 Section through the use of emergency rules, along with

23 permanent rules filed concurrently with such emergency rules,

24 in accordance with the provisions of Section 5-45 of the

25 Illinois Administrative Procedure Act. For purposes of the

26 Illinois Administrative Procedure Act, the adoption of rules

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1 to implement the provisions of this Section shall be deemed an

2 emergency and necessary for the public interest, safety, and

3 welfare.

4 (Source: P.A. 102-700, eff. 4-19-22.)

5 (35 ILCS 105/3-10)

6 Sec. 3-10. Rate of tax. Unless otherwise provided in this

7 Section, the tax imposed by this Act is at the rate of 6.25% of

8 either the selling price or the fair market value, if any, of

9 the tangible personal property. In all cases where property

10 functionally used or consumed is the same as the property that

11 was purchased at retail, then the tax is imposed on the selling

12 price of the property. In all cases where property

13 functionally used or consumed is a by-product or waste product

14 that has been refined, manufactured, or produced from property

15 purchased at retail, then the tax is imposed on the lower of

16 the fair market value, if any, of the specific property so used

17 in this State or on the selling price of the property purchased

18 at retail. For purposes of this Section "fair market value"

19 means the price at which property would change hands between a

20 willing buyer and a willing seller, neither being under any

21 compulsion to buy or sell and both having reasonable knowledge

22 of the relevant facts. The fair market value shall be

23 established by Illinois sales by the taxpayer of the same

24 property as that functionally used or consumed, or if there

25 are no such sales by the taxpayer, then comparable sales or

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1 purchases of property of like kind and character in Illinois.

2 Beginning on July 1, 2000 and through December 31, 2000,

3 with respect to motor fuel, as defined in Section 1.1 of the

4 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of

5 the Use Tax Act, the tax is imposed at the rate of 1.25%.

6 During the sales tax holiday period, as defined in Section

7 3-6, ~~Beginning on August 6, 2010 through August 15, 2010, and~~

8 ~~beginning again on August 5, 2022 through August 14, 2022,~~

9 with respect to sales tax holiday items described ~~as defined~~

10 in Section 3-6 ~~of this Act~~, the tax is imposed at the rate of

11 1.25%.

12 With respect to gasohol, the tax imposed by this Act

13 applies to (i) 70% of the proceeds of sales made on or after

14 January 1, 1990, and before July 1, 2003, (ii) 80% of the

15 proceeds of sales made on or after July 1, 2003 and on or

16 before July 1, 2017, and (iii) 100% of the proceeds of sales

17 made thereafter. If, at any time, however, the tax under this

18 Act on sales of gasohol is imposed at the rate of 1.25%, then

19 the tax imposed by this Act applies to 100% of the proceeds of

20 sales of gasohol made during that time.

21 With respect to majority blended ethanol fuel, the tax

22 imposed by this Act does not apply to the proceeds of sales

23 made on or after July 1, 2003 and on or before December 31,

24 2023 but applies to 100% of the proceeds of sales made

25 thereafter.

26 With respect to biodiesel blends with no less than 1% and

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1 no more than 10% biodiesel, the tax imposed by this Act applies

2 to (i) 80% of the proceeds of sales made on or after July 1,

3 2003 and on or before December 31, 2018 and (ii) 100% of the

4 proceeds of sales made after December 31, 2018 and before

5 January 1, 2024. On and after January 1, 2024 and on or before

6 December 31, 2030, the taxation of biodiesel, renewable

7 diesel, and biodiesel blends shall be as provided in Section

8 3-5.1. If, at any time, however, the tax under this Act on

9 sales of biodiesel blends with no less than 1% and no more than

10 10% biodiesel is imposed at the rate of 1.25%, then the tax

11 imposed by this Act applies to 100% of the proceeds of sales of

12 biodiesel blends with no less than 1% and no more than 10%

13 biodiesel made during that time.

14 With respect to biodiesel and biodiesel blends with more

15 than 10% but no more than 99% biodiesel, the tax imposed by

16 this Act does not apply to the proceeds of sales made on or

17 after July 1, 2003 and on or before December 31, 2023. On and

18 after January 1, 2024 and on or before December 31, 2030, the

19 taxation of biodiesel, renewable diesel, and biodiesel blends

20 shall be as provided in Section 3-5.1.

21 Until July 1, 2022 and beginning again on July 1, 2023,

22 with respect to food for human consumption that is to be

23 consumed off the premises where it is sold (other than

24 alcoholic beverages, food consisting of or infused with adult

25 use cannabis, soft drinks, and food that has been prepared for

26 immediate consumption), the tax is imposed at the rate of 1%.

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1 Beginning on July 1, 2022 and until July 1, 2023, with respect

2 to food for human consumption that is to be consumed off the

3 premises where it is sold (other than alcoholic beverages,

4 food consisting of or infused with adult use cannabis, soft

5 drinks, and food that has been prepared for immediate

6 consumption), the tax is imposed at the rate of 0%.

7 With respect to prescription and nonprescription

8 medicines, drugs, medical appliances, products classified as

9 Class III medical devices by the United States Food and Drug

10 Administration that are used for cancer treatment pursuant to

11 a prescription, as well as any accessories and components

12 related to those devices, modifications to a motor vehicle for

13 the purpose of rendering it usable by a person with a

14 disability, and insulin, blood sugar testing materials,

15 syringes, and needles used by human diabetics, the tax is

16 imposed at the rate of 1%. For the purposes of this Section,

17 until September 1, 2009: the term "soft drinks" means any

18 complete, finished, ready-to-use, non-alcoholic drink, whether

19 carbonated or not, including, but not limited to,soda water,

20 cola, fruit juice, vegetable juice, carbonated water, and all

21 other preparations commonly known as soft drinks of whatever

22 kind or description that are contained in any closed or sealed

23 bottle, can, carton, or container, regardless of size; but

24 "soft drinks" does not include coffee, tea, non-carbonated

25 water, infant formula, milk or milk products as defined in the

26 Grade A Pasteurized Milk and Milk Products Act, or drinks

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1 containing 50% or more natural fruit or vegetable juice.

2 Notwithstanding any other provisions of this Act,

3 beginning September 1, 2009, "soft drinks" means non-alcoholic

4 beverages that contain natural or artificial sweeteners. "Soft

5 drinks" does ~~do~~ not include beverages that contain milk or

6 milk products, soy, rice or similar milk substitutes, or

7 greater than 50% of vegetable or fruit juice by volume.

8 Until August 1, 2009, and notwithstanding any other

9 provisions of this Act, "food for human consumption that is to

10 be consumed off the premises where it is sold" includes all

11 food sold through a vending machine, except soft drinks and

12 food products that are dispensed hot from a vending machine,

13 regardless of the location of the vending machine. Beginning

14 August 1, 2009, and notwithstanding any other provisions of

15 this Act, "food for human consumption that is to be consumed

16 off the premises where it is sold" includes all food sold

17 through a vending machine, except soft drinks, candy, and food

18 products that are dispensed hot from a vending machine,

19 regardless of the location of the vending machine.

20 Notwithstanding any other provisions of this Act,

21 beginning September 1, 2009, "food for human consumption that

22 is to be consumed off the premises where it is sold" does not

23 include candy. For purposes of this Section, "candy" means a

24 preparation of sugar, honey, or other natural or artificial

25 sweeteners in combination with chocolate, fruits, nuts or

26 other ingredients or flavorings in the form of bars, drops, or

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1 pieces. "Candy" does not include any preparation that contains

2 flour or requires refrigeration.

3 Notwithstanding any other provisions of this Act,

4 beginning September 1, 2009, "nonprescription medicines and

5 drugs" does not include grooming and hygiene products. For

6 purposes of this Section, "grooming and hygiene products"

7 includes, but is not limited to, soaps and cleaning solutions,

8 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan

9 lotions and screens, unless those products are available by

10 prescription only, regardless of whether the products meet the

11 definition of "over-the-counter-drugs". For the purposes of

12 this paragraph, "over-the-counter-drug" means a drug for human

13 use that contains a label that identifies the product as a drug

14 as required by 21 CFR ~~C.F.R. �~~ 201.66. The

15 "over-the-counter-drug" label includes:

16 (A) a ~~A~~ "Drug Facts" panel; or

17 (B) a ~~A~~ statement of the "active ingredient(s)" with a

18 list of those ingredients contained in the compound,

19 substance or preparation.

20 Beginning on January 1, 2014 (the effective date of Public

21 Act 98-122) ~~this amendatory Act of the 98th General Assembly~~,

22 "prescription and nonprescription medicines and drugs"

23 includes medical cannabis purchased from a registered

24 dispensing organization under the Compassionate Use of Medical

25 Cannabis Program Act.

26 As used in this Section, "adult use cannabis" means

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1 cannabis subject to tax under the Cannabis Cultivation

2 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law

3 and does not include cannabis subject to tax under the

4 Compassionate Use of Medical Cannabis Program Act.

5 If the property that is purchased at retail from a

6 retailer is acquired outside Illinois and used outside

7 Illinois before being brought to Illinois for use here and is

8 taxable under this Act, the "selling price" on which the tax is

9 computed shall be reduced by an amount that represents a

10 reasonable allowance for depreciation for the period of prior

11 out-of-state use.

12 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;

13 102-4, eff. 4-27-21; 102-700, Article 20, Section 20-5, eff.

14 4-19-22; 102-700, Article 60, Section 60-15, eff. 4-19-22;

15 102-700, Article 65, Section 65-5, eff. 4-19-22; revised

16 5-27-22.)

17 (35 ILCS 105/9) (from Ch. 120, par. 439.9)

18 Sec. 9. Except as to motor vehicles, watercraft, aircraft,

19 and trailers that are required to be registered with an agency

20 of this State, each retailer required or authorized to collect

21 the tax imposed by this Act shall pay to the Department the

22 amount of such tax (except as otherwise provided) at the time

23 when he is required to file his return for the period during

24 which such tax was collected, less a discount of 2.1% prior to

25 January 1, 1990, and 1.75% on and after January 1, 1990, or $5

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1 per calendar year, whichever is greater, which is allowed to

2 reimburse the retailer for expenses incurred in collecting the

3 tax, keeping records, preparing and filing returns, remitting

4 the tax and supplying data to the Department on request. When

5 determining the discount allowed under this Section, retailers

6 shall include the amount of tax that would have been due at the

7 6.25% rate but for the 1.25% rate imposed on sales tax holiday

8 items under Public Act 102-700 or this amendatory Act of the

9 103rd General Assembly ~~this amendatory Act of the 102nd~~

10 ~~General Assembly~~. The discount under this Section is not

11 allowed for the 1.25% portion of taxes paid on aviation fuel

12 that is subject to the revenue use requirements of 49 U.S.C.

13 47107(b) and 49 U.S.C. 47133. When determining the discount

14 allowed under this Section, retailers shall include the amount

15 of tax that would have been due at the 1% rate but for the 0%

16 rate imposed under Public Act 102-700 ~~this amendatory Act of~~

17 ~~the 102nd General Assembly~~. In the case of retailers who

18 report and pay the tax on a transaction by transaction basis,

19 as provided in this Section, such discount shall be taken with

20 each such tax remittance instead of when such retailer files

21 his periodic return. The discount allowed under this Section

22 is allowed only for returns that are filed in the manner

23 required by this Act. The Department may disallow the discount

24 for retailers whose certificate of registration is revoked at

25 the time the return is filed, but only if the Department's

26 decision to revoke the certificate of registration has become

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1 final. A retailer need not remit that part of any tax collected

2 by him to the extent that he is required to remit and does

3 remit the tax imposed by the Retailers' Occupation Tax Act,

4 with respect to the sale of the same property.

5 Where such tangible personal property is sold under a

6 conditional sales contract, or under any other form of sale

7 wherein the payment of the principal sum, or a part thereof, is

8 extended beyond the close of the period for which the return is

9 filed, the retailer, in collecting the tax (except as to motor

10 vehicles, watercraft, aircraft, and trailers that are required

11 to be registered with an agency of this State), may collect for

12 each tax return period, only the tax applicable to that part of

13 the selling price actually received during such tax return

14 period.

15 Except as provided in this Section, on or before the

16 twentieth day of each calendar month, such retailer shall file

17 a return for the preceding calendar month. Such return shall

18 be filed on forms prescribed by the Department and shall

19 furnish such information as the Department may reasonably

20 require. The return shall include the gross receipts on food

21 for human consumption that is to be consumed off the premises

22 where it is sold (other than alcoholic beverages, food

23 consisting of or infused with adult use cannabis, soft drinks,

24 and food that has been prepared for immediate consumption)

25 which were received during the preceding calendar month,

26 quarter, or year, as appropriate, and upon which tax would

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1 have been due but for the 0% rate imposed under Public Act

2 102-700 ~~this amendatory Act of the 102nd General Assembly~~. The

3 return shall also include the amount of tax that would have

4 been due on food for human consumption that is to be consumed

5 off the premises where it is sold (other than alcoholic

6 beverages, food consisting of or infused with adult use

7 cannabis, soft drinks, and food that has been prepared for

8 immediate consumption) but for the 0% rate imposed under

9 Public Act 102-700 ~~this amendatory Act of the 102nd General~~

10 ~~Assembly~~.

11 On and after January 1, 2018, except for returns required

12 to be filed prior to January 1, 2023 for motor vehicles,

13 watercraft, aircraft, and trailers that are required to be

14 registered with an agency of this State, with respect to

15 retailers whose annual gross receipts average $20,000 or more,

16 all returns required to be filed pursuant to this Act shall be

17 filed electronically. On and after January 1, 2023, with

18 respect to retailers whose annual gross receipts average

19 $20,000 or more, all returns required to be filed pursuant to

20 this Act, including, but not limited to, returns for motor

21 vehicles, watercraft, aircraft, and trailers that are required

22 to be registered with an agency of this State, shall be filed

23 electronically. Retailers who demonstrate that they do not

24 have access to the Internet or demonstrate hardship in filing

25 electronically may petition the Department to waive the

26 electronic filing requirement.

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1 The Department may require returns to be filed on a

2 quarterly basis. If so required, a return for each calendar

3 quarter shall be filed on or before the twentieth day of the

4 calendar month following the end of such calendar quarter. The

5 taxpayer shall also file a return with the Department for each

6 of the first two months of each calendar quarter, on or before

7 the twentieth day of the following calendar month, stating:

8 1. The name of the seller;

9 2. The address of the principal place of business from

10 which he engages in the business of selling tangible

11 personal property at retail in this State;

12 3. The total amount of taxable receipts received by

13 him during the preceding calendar month from sales of

14 tangible personal property by him during such preceding

15 calendar month, including receipts from charge and time

16 sales, but less all deductions allowed by law;

17 4. The amount of credit provided in Section 2d of this

18 Act;

19 5. The amount of tax due;

20 5-5. The signature of the taxpayer; and

21 6. Such other reasonable information as the Department

22 may require.

23 Each retailer required or authorized to collect the tax

24 imposed by this Act on aviation fuel sold at retail in this

25 State during the preceding calendar month shall, instead of

26 reporting and paying tax on aviation fuel as otherwise

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1 required by this Section, report and pay such tax on a separate

2 aviation fuel tax return. The requirements related to the

3 return shall be as otherwise provided in this Section.

4 Notwithstanding any other provisions of this Act to the

5 contrary, retailers collecting tax on aviation fuel shall file

6 all aviation fuel tax returns and shall make all aviation fuel

7 tax payments by electronic means in the manner and form

8 required by the Department. For purposes of this Section,

9 "aviation fuel" means jet fuel and aviation gasoline.

10 If a taxpayer fails to sign a return within 30 days after

11 the proper notice and demand for signature by the Department,

12 the return shall be considered valid and any amount shown to be

13 due on the return shall be deemed assessed.

14 Notwithstanding any other provision of this Act to the

15 contrary, retailers subject to tax on cannabis shall file all

16 cannabis tax returns and shall make all cannabis tax payments

17 by electronic means in the manner and form required by the

18 Department.

19 Beginning October 1, 1993, a taxpayer who has an average

20 monthly tax liability of $150,000 or more shall make all

21 payments required by rules of the Department by electronic

22 funds transfer. Beginning October 1, 1994, a taxpayer who has

23 an average monthly tax liability of $100,000 or more shall

24 make all payments required by rules of the Department by

25 electronic funds transfer. Beginning October 1, 1995, a

26 taxpayer who has an average monthly tax liability of $50,000

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1 or more shall make all payments required by rules of the

2 Department by electronic funds transfer. Beginning October 1,

3 2000, a taxpayer who has an annual tax liability of $200,000 or

4 more shall make all payments required by rules of the

5 Department by electronic funds transfer. The term "annual tax

6 liability" shall be the sum of the taxpayer's liabilities

7 under this Act, and under all other State and local occupation

8 and use tax laws administered by the Department, for the

9 immediately preceding calendar year. The term "average monthly

10 tax liability" means the sum of the taxpayer's liabilities

11 under this Act, and under all other State and local occupation

12 and use tax laws administered by the Department, for the

13 immediately preceding calendar year divided by 12. Beginning

14 on October 1, 2002, a taxpayer who has a tax liability in the

15 amount set forth in subsection (b) of Section 2505-210 of the

16 Department of Revenue Law shall make all payments required by

17 rules of the Department by electronic funds transfer.

18 Before August 1 of each year beginning in 1993, the

19 Department shall notify all taxpayers required to make

20 payments by electronic funds transfer. All taxpayers required

21 to make payments by electronic funds transfer shall make those

22 payments for a minimum of one year beginning on October 1.

23 Any taxpayer not required to make payments by electronic

24 funds transfer may make payments by electronic funds transfer

25 with the permission of the Department.

26 All taxpayers required to make payment by electronic funds

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1 transfer and any taxpayers authorized to voluntarily make

2 payments by electronic funds transfer shall make those

3 payments in the manner authorized by the Department.

4 The Department shall adopt such rules as are necessary to

5 effectuate a program of electronic funds transfer and the

6 requirements of this Section.

7 Before October 1, 2000, if the taxpayer's average monthly

8 tax liability to the Department under this Act, the Retailers'

9 Occupation Tax Act, the Service Occupation Tax Act, the

10 Service Use Tax Act was $10,000 or more during the preceding 4

11 complete calendar quarters, he shall file a return with the

12 Department each month by the 20th day of the month next

13 following the month during which such tax liability is

14 incurred and shall make payments to the Department on or

15 before the 7th, 15th, 22nd and last day of the month during

16 which such liability is incurred. On and after October 1,

17 2000, if the taxpayer's average monthly tax liability to the

18 Department under this Act, the Retailers' Occupation Tax Act,

19 the Service Occupation Tax Act, and the Service Use Tax Act was

20 $20,000 or more during the preceding 4 complete calendar

21 quarters, he shall file a return with the Department each

22 month by the 20th day of the month next following the month

23 during which such tax liability is incurred and shall make

24 payment to the Department on or before the 7th, 15th, 22nd and

25 last day of the month during which such liability is incurred.

26 If the month during which such tax liability is incurred began

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1 prior to January 1, 1985, each payment shall be in an amount

2 equal to 1/4 of the taxpayer's actual liability for the month

3 or an amount set by the Department not to exceed 1/4 of the

4 average monthly liability of the taxpayer to the Department

5 for the preceding 4 complete calendar quarters (excluding the

6 month of highest liability and the month of lowest liability

7 in such 4 quarter period). If the month during which such tax

8 liability is incurred begins on or after January 1, 1985, and

9 prior to January 1, 1987, each payment shall be in an amount

10 equal to 22.5% of the taxpayer's actual liability for the

11 month or 27.5% of the taxpayer's liability for the same

12 calendar month of the preceding year. If the month during

13 which such tax liability is incurred begins on or after

14 January 1, 1987, and prior to January 1, 1988, each payment

15 shall be in an amount equal to 22.5% of the taxpayer's actual

16 liability for the month or 26.25% of the taxpayer's liability

17 for the same calendar month of the preceding year. If the month

18 during which such tax liability is incurred begins on or after

19 January 1, 1988, and prior to January 1, 1989, or begins on or

20 after January 1, 1996, each payment shall be in an amount equal

21 to 22.5% of the taxpayer's actual liability for the month or

22 25% of the taxpayer's liability for the same calendar month of

23 the preceding year. If the month during which such tax

24 liability is incurred begins on or after January 1, 1989, and

25 prior to January 1, 1996, each payment shall be in an amount

26 equal to 22.5% of the taxpayer's actual liability for the

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1 month or 25% of the taxpayer's liability for the same calendar

2 month of the preceding year or 100% of the taxpayer's actual

3 liability for the quarter monthly reporting period. The amount

4 of such quarter monthly payments shall be credited against the

5 final tax liability of the taxpayer's return for that month.

6 Before October 1, 2000, once applicable, the requirement of

7 the making of quarter monthly payments to the Department shall

8 continue until such taxpayer's average monthly liability to

9 the Department during the preceding 4 complete calendar

10 quarters (excluding the month of highest liability and the

11 month of lowest liability) is less than $9,000, or until such

12 taxpayer's average monthly liability to the Department as

13 computed for each calendar quarter of the 4 preceding complete

14 calendar quarter period is less than $10,000. However, if a

15 taxpayer can show the Department that a substantial change in

16 the taxpayer's business has occurred which causes the taxpayer

17 to anticipate that his average monthly tax liability for the

18 reasonably foreseeable future will fall below the $10,000

19 threshold stated above, then such taxpayer may petition the

20 Department for change in such taxpayer's reporting status. On

21 and after October 1, 2000, once applicable, the requirement of

22 the making of quarter monthly payments to the Department shall

23 continue until such taxpayer's average monthly liability to

24 the Department during the preceding 4 complete calendar

25 quarters (excluding the month of highest liability and the

26 month of lowest liability) is less than $19,000 or until such

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1 taxpayer's average monthly liability to the Department as

2 computed for each calendar quarter of the 4 preceding complete

3 calendar quarter period is less than $20,000. However, if a

4 taxpayer can show the Department that a substantial change in

5 the taxpayer's business has occurred which causes the taxpayer

6 to anticipate that his average monthly tax liability for the

7 reasonably foreseeable future will fall below the $20,000

8 threshold stated above, then such taxpayer may petition the

9 Department for a change in such taxpayer's reporting status.

10 The Department shall change such taxpayer's reporting status

11 unless it finds that such change is seasonal in nature and not

12 likely to be long term. Quarter monthly payment status shall

13 be determined under this paragraph as if the rate reduction to

14 1.25% in Public Act 102-700 ~~this amendatory Act of the 102nd~~

15 ~~General Assembly~~ on sales tax holiday items had not occurred.

16 Quarter monthly payment status shall be determined under this

17 paragraph as if the rate reduction to 1.25% in this amendatory

18 Act of the 103rd General Assembly on sales tax holiday items

19 had not occurred. For quarter monthly payments due on or after

20 July 1, 2023 and through June 30, 2024, "25% of the taxpayer's

21 liability for the same calendar month of the preceding year"

22 shall be determined as if the rate reduction to 1.25% in Public

23 Act 102-700 ~~this amendatory Act of the 102nd General Assembly~~

24 on sales tax holiday items had not occurred. For quarter

25 monthly payments due on or after July 1, 2024 and through June

26 30, 2025, "25% of the taxpayer's liability for the same

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1 calendar month of the preceding year" shall be determined as

2 if the rate reduction to 1.25% in this amendatory Act of the

3 103rd General Assembly on sales tax holiday items had not

4 occurred. Quarter monthly payment status shall be determined

5 under this paragraph as if the rate reduction to 0% in Public

6 Act 102-700 ~~this amendatory Act of the 102nd General Assembly~~

7 on food for human consumption that is to be consumed off the

8 premises where it is sold (other than alcoholic beverages,

9 food consisting of or infused with adult use cannabis, soft

10 drinks, and food that has been prepared for immediate

11 consumption) had not occurred. For quarter monthly payments

12 due under this paragraph on or after July 1, 2023 and through

13 June 30, 2024, "25% of the taxpayer's liability for the same

14 calendar month of the preceding year" shall be determined as

15 if the rate reduction to 0% in Public Act 102-700 ~~this~~

16 ~~amendatory Act of the 102nd General Assembly~~ had not occurred.

17 If any such quarter monthly payment is not paid at the time or

18 in the amount required by this Section, then the taxpayer

19 shall be liable for penalties and interest on the difference

20 between the minimum amount due and the amount of such quarter

21 monthly payment actually and timely paid, except insofar as

22 the taxpayer has previously made payments for that month to

23 the Department in excess of the minimum payments previously

24 due as provided in this Section. The Department shall make

25 reasonable rules and regulations to govern the quarter monthly

26 payment amount and quarter monthly payment dates for taxpayers

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1 who file on other than a calendar monthly basis.

2 If any such payment provided for in this Section exceeds

3 the taxpayer's liabilities under this Act, the Retailers'

4 Occupation Tax Act, the Service Occupation Tax Act and the

5 Service Use Tax Act, as shown by an original monthly return,

6 the Department shall issue to the taxpayer a credit memorandum

7 no later than 30 days after the date of payment, which

8 memorandum may be submitted by the taxpayer to the Department

9 in payment of tax liability subsequently to be remitted by the

10 taxpayer to the Department or be assigned by the taxpayer to a

11 similar taxpayer under this Act, the Retailers' Occupation Tax

12 Act, the Service Occupation Tax Act or the Service Use Tax Act,

13 in accordance with reasonable rules and regulations to be

14 prescribed by the Department, except that if such excess

15 payment is shown on an original monthly return and is made

16 after December 31, 1986, no credit memorandum shall be issued,

17 unless requested by the taxpayer. If no such request is made,

18 the taxpayer may credit such excess payment against tax

19 liability subsequently to be remitted by the taxpayer to the

20 Department under this Act, the Retailers' Occupation Tax Act,

21 the Service Occupation Tax Act or the Service Use Tax Act, in

22 accordance with reasonable rules and regulations prescribed by

23 the Department. If the Department subsequently determines that

24 all or any part of the credit taken was not actually due to the

25 taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall

26 be reduced by 2.1% or 1.75% of the difference between the

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1 credit taken and that actually due, and the taxpayer shall be

2 liable for penalties and interest on such difference.

3 If the retailer is otherwise required to file a monthly

4 return and if the retailer's average monthly tax liability to

5 the Department does not exceed $200, the Department may

6 authorize his returns to be filed on a quarter annual basis,

7 with the return for January, February, and March of a given

8 year being due by April 20 of such year; with the return for

9 April, May and June of a given year being due by July 20 of

10 such year; with the return for July, August and September of a

11 given year being due by October 20 of such year, and with the

12 return for October, November and December of a given year

13 being due by January 20 of the following year.

14 If the retailer is otherwise required to file a monthly or

15 quarterly return and if the retailer's average monthly tax

16 liability to the Department does not exceed $50, the

17 Department may authorize his returns to be filed on an annual

18 basis, with the return for a given year being due by January 20

19 of the following year.

20 Such quarter annual and annual returns, as to form and

21 substance, shall be subject to the same requirements as

22 monthly returns.

23 Notwithstanding any other provision in this Act concerning

24 the time within which a retailer may file his return, in the

25 case of any retailer who ceases to engage in a kind of business

26 which makes him responsible for filing returns under this Act,

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1 such retailer shall file a final return under this Act with the

2 Department not more than one month after discontinuing such

3 business.

4 In addition, with respect to motor vehicles, watercraft,

5 aircraft, and trailers that are required to be registered with

6 an agency of this State, except as otherwise provided in this

7 Section, every retailer selling this kind of tangible personal

8 property shall file, with the Department, upon a form to be

9 prescribed and supplied by the Department, a separate return

10 for each such item of tangible personal property which the

11 retailer sells, except that if, in the same transaction, (i) a

12 retailer of aircraft, watercraft, motor vehicles or trailers

13 transfers more than one aircraft, watercraft, motor vehicle or

14 trailer to another aircraft, watercraft, motor vehicle or

15 trailer retailer for the purpose of resale or (ii) a retailer

16 of aircraft, watercraft, motor vehicles, or trailers transfers

17 more than one aircraft, watercraft, motor vehicle, or trailer

18 to a purchaser for use as a qualifying rolling stock as

19 provided in Section 3-55 of this Act, then that seller may

20 report the transfer of all the aircraft, watercraft, motor

21 vehicles or trailers involved in that transaction to the

22 Department on the same uniform invoice-transaction reporting

23 return form. For purposes of this Section, "watercraft" means

24 a Class 2, Class 3, or Class 4 watercraft as defined in Section

25 3-2 of the Boat Registration and Safety Act, a personal

26 watercraft, or any boat equipped with an inboard motor.

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1 In addition, with respect to motor vehicles, watercraft,

2 aircraft, and trailers that are required to be registered with

3 an agency of this State, every person who is engaged in the

4 business of leasing or renting such items and who, in

5 connection with such business, sells any such item to a

6 retailer for the purpose of resale is, notwithstanding any

7 other provision of this Section to the contrary, authorized to

8 meet the return-filing requirement of this Act by reporting

9 the transfer of all the aircraft, watercraft, motor vehicles,

10 or trailers transferred for resale during a month to the

11 Department on the same uniform invoice-transaction reporting

12 return form on or before the 20th of the month following the

13 month in which the transfer takes place. Notwithstanding any

14 other provision of this Act to the contrary, all returns filed

15 under this paragraph must be filed by electronic means in the

16 manner and form as required by the Department.

17 The transaction reporting return in the case of motor

18 vehicles or trailers that are required to be registered with

19 an agency of this State, shall be the same document as the

20 Uniform Invoice referred to in Section 5-402 of the Illinois

21 Vehicle Code and must show the name and address of the seller;

22 the name and address of the purchaser; the amount of the

23 selling price including the amount allowed by the retailer for

24 traded-in property, if any; the amount allowed by the retailer

25 for the traded-in tangible personal property, if any, to the

26 extent to which Section 2 of this Act allows an exemption for

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1 the value of traded-in property; the balance payable after

2 deducting such trade-in allowance from the total selling

3 price; the amount of tax due from the retailer with respect to

4 such transaction; the amount of tax collected from the

5 purchaser by the retailer on such transaction (or satisfactory

6 evidence that such tax is not due in that particular instance,

7 if that is claimed to be the fact); the place and date of the

8 sale; a sufficient identification of the property sold; such

9 other information as is required in Section 5-402 of the

10 Illinois Vehicle Code, and such other information as the

11 Department may reasonably require.

12 The transaction reporting return in the case of watercraft

13 and aircraft must show the name and address of the seller; the

14 name and address of the purchaser; the amount of the selling

15 price including the amount allowed by the retailer for

16 traded-in property, if any; the amount allowed by the retailer

17 for the traded-in tangible personal property, if any, to the

18 extent to which Section 2 of this Act allows an exemption for

19 the value of traded-in property; the balance payable after

20 deducting such trade-in allowance from the total selling

21 price; the amount of tax due from the retailer with respect to

22 such transaction; the amount of tax collected from the

23 purchaser by the retailer on such transaction (or satisfactory

24 evidence that such tax is not due in that particular instance,

25 if that is claimed to be the fact); the place and date of the

26 sale, a sufficient identification of the property sold, and

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1 such other information as the Department may reasonably

2 require.

3 Such transaction reporting return shall be filed not later

4 than 20 days after the date of delivery of the item that is

5 being sold, but may be filed by the retailer at any time sooner

6 than that if he chooses to do so. The transaction reporting

7 return and tax remittance or proof of exemption from the tax

8 that is imposed by this Act may be transmitted to the

9 Department by way of the State agency with which, or State

10 officer with whom, the tangible personal property must be

11 titled or registered (if titling or registration is required)

12 if the Department and such agency or State officer determine

13 that this procedure will expedite the processing of

14 applications for title or registration.

15 With each such transaction reporting return, the retailer

16 shall remit the proper amount of tax due (or shall submit

17 satisfactory evidence that the sale is not taxable if that is

18 the case), to the Department or its agents, whereupon the

19 Department shall issue, in the purchaser's name, a tax receipt

20 (or a certificate of exemption if the Department is satisfied

21 that the particular sale is tax exempt) which such purchaser

22 may submit to the agency with which, or State officer with

23 whom, he must title or register the tangible personal property

24 that is involved (if titling or registration is required) in

25 support of such purchaser's application for an Illinois

26 certificate or other evidence of title or registration to such

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1 tangible personal property.

2 No retailer's failure or refusal to remit tax under this

3 Act precludes a user, who has paid the proper tax to the

4 retailer, from obtaining his certificate of title or other

5 evidence of title or registration (if titling or registration

6 is required) upon satisfying the Department that such user has

7 paid the proper tax (if tax is due) to the retailer. The

8 Department shall adopt appropriate rules to carry out the

9 mandate of this paragraph.

10 If the user who would otherwise pay tax to the retailer

11 wants the transaction reporting return filed and the payment

12 of tax or proof of exemption made to the Department before the

13 retailer is willing to take these actions and such user has not

14 paid the tax to the retailer, such user may certify to the fact

15 of such delay by the retailer, and may (upon the Department

16 being satisfied of the truth of such certification) transmit

17 the information required by the transaction reporting return

18 and the remittance for tax or proof of exemption directly to

19 the Department and obtain his tax receipt or exemption

20 determination, in which event the transaction reporting return

21 and tax remittance (if a tax payment was required) shall be

22 credited by the Department to the proper retailer's account

23 with the Department, but without the 2.1% or 1.75% discount

24 provided for in this Section being allowed. When the user pays

25 the tax directly to the Department, he shall pay the tax in the

26 same amount and in the same form in which it would be remitted

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1 if the tax had been remitted to the Department by the retailer.

2 Where a retailer collects the tax with respect to the

3 selling price of tangible personal property which he sells and

4 the purchaser thereafter returns such tangible personal

5 property and the retailer refunds the selling price thereof to

6 the purchaser, such retailer shall also refund, to the

7 purchaser, the tax so collected from the purchaser. When

8 filing his return for the period in which he refunds such tax

9 to the purchaser, the retailer may deduct the amount of the tax

10 so refunded by him to the purchaser from any other use tax

11 which such retailer may be required to pay or remit to the

12 Department, as shown by such return, if the amount of the tax

13 to be deducted was previously remitted to the Department by

14 such retailer. If the retailer has not previously remitted the

15 amount of such tax to the Department, he is entitled to no

16 deduction under this Act upon refunding such tax to the

17 purchaser.

18 Any retailer filing a return under this Section shall also

19 include (for the purpose of paying tax thereon) the total tax

20 covered by such return upon the selling price of tangible

21 personal property purchased by him at retail from a retailer,

22 but as to which the tax imposed by this Act was not collected

23 from the retailer filing such return, and such retailer shall

24 remit the amount of such tax to the Department when filing such

25 return.

26 If experience indicates such action to be practicable, the

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1 Department may prescribe and furnish a combination or joint

2 return which will enable retailers, who are required to file

3 returns hereunder and also under the Retailers' Occupation Tax

4 Act, to furnish all the return information required by both

5 Acts on the one form.

6 Where the retailer has more than one business registered

7 with the Department under separate registration under this

8 Act, such retailer may not file each return that is due as a

9 single return covering all such registered businesses, but

10 shall file separate returns for each such registered business.

11 Beginning January 1, 1990, each month the Department shall

12 pay into the State and Local Sales Tax Reform Fund, a special

13 fund in the State Treasury which is hereby created, the net

14 revenue realized for the preceding month from the 1% tax

15 imposed under this Act.

16 Beginning January 1, 1990, each month the Department shall

17 pay into the County and Mass Transit District Fund 4% of the

18 net revenue realized for the preceding month from the 6.25%

19 general rate on the selling price of tangible personal

20 property which is purchased outside Illinois at retail from a

21 retailer and which is titled or registered by an agency of this

22 State's government.

23 Beginning January 1, 1990, each month the Department shall

24 pay into the State and Local Sales Tax Reform Fund, a special

25 fund in the State Treasury, 20% of the net revenue realized for

26 the preceding month from the 6.25% general rate on the selling

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1 price of tangible personal property, other than (i) tangible

2 personal property which is purchased outside Illinois at

3 retail from a retailer and which is titled or registered by an

4 agency of this State's government and (ii) aviation fuel sold

5 on or after December 1, 2019. This exception for aviation fuel

6 only applies for so long as the revenue use requirements of 49

7 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.

8 For aviation fuel sold on or after December 1, 2019, each

9 month the Department shall pay into the State Aviation Program

10 Fund 20% of the net revenue realized for the preceding month

11 from the 6.25% general rate on the selling price of aviation

12 fuel, less an amount estimated by the Department to be

13 required for refunds of the 20% portion of the tax on aviation

14 fuel under this Act, which amount shall be deposited into the

15 Aviation Fuel Sales Tax Refund Fund. The Department shall only

16 pay moneys into the State Aviation Program Fund and the

17 Aviation Fuels Sales Tax Refund Fund under this Act for so long

18 as the revenue use requirements of 49 U.S.C. 47107(b) and 49

19 U.S.C. 47133 are binding on the State.

20 Beginning August 1, 2000, each month the Department shall

21 pay into the State and Local Sales Tax Reform Fund 100% of the

22 net revenue realized for the preceding month from the 1.25%

23 rate on the selling price of motor fuel and gasohol. If, in any

24 month, the tax on sales tax holiday items, as defined in

25 Section 3-6, is imposed at the rate of 1.25%, then the

26 Department shall pay 100% of the net revenue realized for that

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1 month from the 1.25% rate on the selling price of sales tax

2 holiday items into the State and Local Sales Tax Reform Fund.

3 Beginning January 1, 1990, each month the Department shall

4 pay into the Local Government Tax Fund 16% of the net revenue

5 realized for the preceding month from the 6.25% general rate

6 on the selling price of tangible personal property which is

7 purchased outside Illinois at retail from a retailer and which

8 is titled or registered by an agency of this State's

9 government.

10 Beginning October 1, 2009, each month the Department shall

11 pay into the Capital Projects Fund an amount that is equal to

12 an amount estimated by the Department to represent 80% of the

13 net revenue realized for the preceding month from the sale of

14 candy, grooming and hygiene products, and soft drinks that had

15 been taxed at a rate of 1% prior to September 1, 2009 but that

16 are now taxed at 6.25%.

17 Beginning July 1, 2011, each month the Department shall

18 pay into the Clean Air Act Permit Fund 80% of the net revenue

19 realized for the preceding month from the 6.25% general rate

20 on the selling price of sorbents used in Illinois in the

21 process of sorbent injection as used to comply with the

22 Environmental Protection Act or the federal Clean Air Act, but

23 the total payment into the Clean Air Act Permit Fund under this

24 Act and the Retailers' Occupation Tax Act shall not exceed

25 $2,000,000 in any fiscal year.

26 Beginning July 1, 2013, each month the Department shall

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1 pay into the Underground Storage Tank Fund from the proceeds

2 collected under this Act, the Service Use Tax Act, the Service

3 Occupation Tax Act, and the Retailers' Occupation Tax Act an

4 amount equal to the average monthly deficit in the Underground

5 Storage Tank Fund during the prior year, as certified annually

6 by the Illinois Environmental Protection Agency, but the total

7 payment into the Underground Storage Tank Fund under this Act,

8 the Service Use Tax Act, the Service Occupation Tax Act, and

9 the Retailers' Occupation Tax Act shall not exceed $18,000,000

10 in any State fiscal year. As used in this paragraph, the

11 "average monthly deficit" shall be equal to the difference

12 between the average monthly claims for payment by the fund and

13 the average monthly revenues deposited into the fund,

14 excluding payments made pursuant to this paragraph.

15 Beginning July 1, 2015, of the remainder of the moneys

16 received by the Department under this Act, the Service Use Tax

17 Act, the Service Occupation Tax Act, and the Retailers'

18 Occupation Tax Act, each month the Department shall deposit

19 $500,000 into the State Crime Laboratory Fund.

20 Of the remainder of the moneys received by the Department

21 pursuant to this Act, (a) 1.75% thereof shall be paid into the

22 Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on

23 and after July 1, 1989, 3.8% thereof shall be paid into the

24 Build Illinois Fund; provided, however, that if in any fiscal

25 year the sum of (1) the aggregate of 2.2% or 3.8%, as the case

26 may be, of the moneys received by the Department and required

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1 to be paid into the Build Illinois Fund pursuant to Section 3

2 of the Retailers' Occupation Tax Act, Section 9 of the Use Tax

3 Act, Section 9 of the Service Use Tax Act, and Section 9 of the

4 Service Occupation Tax Act, such Acts being hereinafter called

5 the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case

6 may be, of moneys being hereinafter called the "Tax Act

7 Amount", and (2) the amount transferred to the Build Illinois

8 Fund from the State and Local Sales Tax Reform Fund shall be

9 less than the Annual Specified Amount (as defined in Section 3

10 of the Retailers' Occupation Tax Act), an amount equal to the

11 difference shall be immediately paid into the Build Illinois

12 Fund from other moneys received by the Department pursuant to

13 the Tax Acts; and further provided, that if on the last

14 business day of any month the sum of (1) the Tax Act Amount

15 required to be deposited into the Build Illinois Bond Account

16 in the Build Illinois Fund during such month and (2) the amount

17 transferred during such month to the Build Illinois Fund from

18 the State and Local Sales Tax Reform Fund shall have been less

19 than 1/12 of the Annual Specified Amount, an amount equal to

20 the difference shall be immediately paid into the Build

21 Illinois Fund from other moneys received by the Department

22 pursuant to the Tax Acts; and, further provided, that in no

23 event shall the payments required under the preceding proviso

24 result in aggregate payments into the Build Illinois Fund

25 pursuant to this clause (b) for any fiscal year in excess of

26 the greater of (i) the Tax Act Amount or (ii) the Annual

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1 Specified Amount for such fiscal year; and, further provided,

2 that the amounts payable into the Build Illinois Fund under

3 this clause (b) shall be payable only until such time as the

4 aggregate amount on deposit under each trust indenture

5 securing Bonds issued and outstanding pursuant to the Build

6 Illinois Bond Act is sufficient, taking into account any

7 future investment income, to fully provide, in accordance with

8 such indenture, for the defeasance of or the payment of the

9 principal of, premium, if any, and interest on the Bonds

10 secured by such indenture and on any Bonds expected to be

11 issued thereafter and all fees and costs payable with respect

12 thereto, all as certified by the Director of the Bureau of the

13 Budget (now Governor's Office of Management and Budget). If on

14 the last business day of any month in which Bonds are

15 outstanding pursuant to the Build Illinois Bond Act, the

16 aggregate of the moneys deposited in the Build Illinois Bond

17 Account in the Build Illinois Fund in such month shall be less

18 than the amount required to be transferred in such month from

19 the Build Illinois Bond Account to the Build Illinois Bond

20 Retirement and Interest Fund pursuant to Section 13 of the

21 Build Illinois Bond Act, an amount equal to such deficiency

22 shall be immediately paid from other moneys received by the

23 Department pursuant to the Tax Acts to the Build Illinois

24 Fund; provided, however, that any amounts paid to the Build

25 Illinois Fund in any fiscal year pursuant to this sentence

26 shall be deemed to constitute payments pursuant to clause (b)

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1 of the preceding sentence and shall reduce the amount

2 otherwise payable for such fiscal year pursuant to clause (b)

3 of the preceding sentence. The moneys received by the

4 Department pursuant to this Act and required to be deposited

5 into the Build Illinois Fund are subject to the pledge, claim

6 and charge set forth in Section 12 of the Build Illinois Bond

7 Act.

8 Subject to payment of amounts into the Build Illinois Fund

9 as provided in the preceding paragraph or in any amendment

10 thereto hereafter enacted, the following specified monthly

11 installment of the amount requested in the certificate of the

12 Chairman of the Metropolitan Pier and Exposition Authority

13 provided under Section 8.25f of the State Finance Act, but not

14 in excess of the sums designated as "Total Deposit", shall be

15 deposited in the aggregate from collections under Section 9 of

16 the Use Tax Act, Section 9 of the Service Use Tax Act, Section

17 9 of the Service Occupation Tax Act, and Section 3 of the

18 Retailers' Occupation Tax Act into the McCormick Place

19 Expansion Project Fund in the specified fiscal years.

20	`Fiscal Year`	`Total Deposit`
21	`1993`	`$0`
22	`1994`	`53,000,000`
23	`1995`	`58,000,000`
24	`1996`	`61,000,000`
25	`1997`	`64,000,000`
26	`1998`	`68,000,000`

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1	`1999`	`71,000,000`
2	`2000`	`75,000,000`
3	`2001`	`80,000,000`
4	`2002`	`93,000,000`
5	`2003`	`99,000,000`
6	`2004`	`103,000,000`
7	`2005`	`108,000,000`
8	`2006`	`113,000,000`
9	`2007`	`119,000,000`
10	`2008`	`126,000,000`
11	`2009`	`132,000,000`
12	`2010`	`139,000,000`
13	`2011`	`146,000,000`
14	`2012`	`153,000,000`
15	`2013`	`161,000,000`
16	`2014`	`170,000,000`
17	`2015`	`179,000,000`
18	`2016`	`189,000,000`
19	`2017`	`199,000,000`
20	`2018`	`210,000,000`
21	`2019`	`221,000,000`
22	`2020`	`233,000,000`
23	`2021`	`300,000,000`
24	`2022`	`300,000,000`
25	`2023`	`300,000,000`
26	`2024`	`300,000,000`

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1	`2025`	`300,000,000`
2	`2026`	`300,000,000`
3	`2027`	`375,000,000`
4	`2028`	`375,000,000`
5	`2029`	`375,000,000`
6	`2030`	`375,000,000`
7	`2031`	`375,000,000`
8	`2032`	`375,000,000`
9	`2033`	`375,000,000`
10	`2034`	`375,000,000`
11	`2035`	`375,000,000`
12	`2036`	`450,000,000`
13	`and`
14	`each fiscal year`
15	`thereafter that bonds`
16	`are outstanding under`
17	`Section 13.2 of the`
18	`Metropolitan Pier and`
19	`Exposition Authority Act,`
20	`but not after fiscal year 2060.`

21 Beginning July 20, 1993 and in each month of each fiscal

22 year thereafter, one-eighth of the amount requested in the

23 certificate of the Chairman of the Metropolitan Pier and

24 Exposition Authority for that fiscal year, less the amount

25 deposited into the McCormick Place Expansion Project Fund by

26 the State Treasurer in the respective month under subsection

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1 (g) of Section 13 of the Metropolitan Pier and Exposition

2 Authority Act, plus cumulative deficiencies in the deposits

3 required under this Section for previous months and years,

4 shall be deposited into the McCormick Place Expansion Project

5 Fund, until the full amount requested for the fiscal year, but

6 not in excess of the amount specified above as "Total

7 Deposit", has been deposited.

8 Subject to payment of amounts into the Capital Projects

9 Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,

10 and the McCormick Place Expansion Project Fund pursuant to the

11 preceding paragraphs or in any amendments thereto hereafter

12 enacted, for aviation fuel sold on or after December 1, 2019,

13 the Department shall each month deposit into the Aviation Fuel

14 Sales Tax Refund Fund an amount estimated by the Department to

15 be required for refunds of the 80% portion of the tax on

16 aviation fuel under this Act. The Department shall only

17 deposit moneys into the Aviation Fuel Sales Tax Refund Fund

18 under this paragraph for so long as the revenue use

19 requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are

20 binding on the State.

21 Subject to payment of amounts into the Build Illinois Fund

22 and the McCormick Place Expansion Project Fund pursuant to the

23 preceding paragraphs or in any amendments thereto hereafter

24 enacted, beginning July 1, 1993 and ending on September 30,

25 2013, the Department shall each month pay into the Illinois

26 Tax Increment Fund 0.27% of 80% of the net revenue realized for

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1 the preceding month from the 6.25% general rate on the selling

2 price of tangible personal property.

3 Subject to payment of amounts into the Build Illinois Fund

4 and the McCormick Place Expansion Project Fund pursuant to the

5 preceding paragraphs or in any amendments thereto hereafter

6 enacted, beginning with the receipt of the first report of

7 taxes paid by an eligible business and continuing for a

8 25-year period, the Department shall each month pay into the

9 Energy Infrastructure Fund 80% of the net revenue realized

10 from the 6.25% general rate on the selling price of

11 Illinois-mined coal that was sold to an eligible business. For

12 purposes of this paragraph, the term "eligible business" means

13 a new electric generating facility certified pursuant to

14 Section 605-332 of the Department of Commerce and Economic

15 Opportunity Law of the Civil Administrative Code of Illinois.

16 Subject to payment of amounts into the Build Illinois

17 Fund, the McCormick Place Expansion Project Fund, the Illinois

18 Tax Increment Fund, and the Energy Infrastructure Fund

19 pursuant to the preceding paragraphs or in any amendments to

20 this Section hereafter enacted, beginning on the first day of

21 the first calendar month to occur on or after August 26, 2014

22 (the effective date of Public Act 98-1098), each month, from

23 the collections made under Section 9 of the Use Tax Act,

24 Section 9 of the Service Use Tax Act, Section 9 of the Service

25 Occupation Tax Act, and Section 3 of the Retailers' Occupation

26 Tax Act, the Department shall pay into the Tax Compliance and

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1 Administration Fund, to be used, subject to appropriation, to

2 fund additional auditors and compliance personnel at the

3 Department of Revenue, an amount equal to 1/12 of 5% of 80% of

4 the cash receipts collected during the preceding fiscal year

5 by the Audit Bureau of the Department under the Use Tax Act,

6 the Service Use Tax Act, the Service Occupation Tax Act, the

7 Retailers' Occupation Tax Act, and associated local occupation

8 and use taxes administered by the Department.

9 Subject to payments of amounts into the Build Illinois

10 Fund, the McCormick Place Expansion Project Fund, the Illinois

11 Tax Increment Fund, the Energy Infrastructure Fund, and the

12 Tax Compliance and Administration Fund as provided in this

13 Section, beginning on July 1, 2018 the Department shall pay

14 each month into the Downstate Public Transportation Fund the

15 moneys required to be so paid under Section 2-3 of the

16 Downstate Public Transportation Act.

17 Subject to successful execution and delivery of a

18 public-private agreement between the public agency and private

19 entity and completion of the civic build, beginning on July 1,

20 2023, of the remainder of the moneys received by the

21 Department under the Use Tax Act, the Service Use Tax Act, the

22 Service Occupation Tax Act, and this Act, the Department shall

23 deposit the following specified deposits in the aggregate from

24 collections under the Use Tax Act, the Service Use Tax Act, the

25 Service Occupation Tax Act, and the Retailers' Occupation Tax

26 Act, as required under Section 8.25g of the State Finance Act

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1 for distribution consistent with the Public-Private

2 Partnership for Civic and Transit Infrastructure Project Act.

3 The moneys received by the Department pursuant to this Act and

4 required to be deposited into the Civic and Transit

5 Infrastructure Fund are subject to the pledge, claim, and

6 charge set forth in Section 25-55 of the Public-Private

7 Partnership for Civic and Transit Infrastructure Project Act.

8 As used in this paragraph, "civic build", "private entity",

9 "public-private agreement", and "public agency" have the

10 meanings provided in Section 25-10 of the Public-Private

11 Partnership for Civic and Transit Infrastructure Project Act.

12 Fiscal Year............................Total Deposit

13 2024....................................$200,000,000

14 2025....................................$206,000,000

15 2026....................................$212,200,000

16 2027....................................$218,500,000

17 2028....................................$225,100,000

18 2029....................................$288,700,000

19 2030....................................$298,900,000

20 2031....................................$309,300,000

21 2032....................................$320,100,000

22 2033....................................$331,200,000

23 2034....................................$341,200,000

24 2035....................................$351,400,000

25 2036....................................$361,900,000

26 2037....................................$372,800,000

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1 2038....................................$384,000,000

2 2039....................................$395,500,000

3 2040....................................$407,400,000

4 2041....................................$419,600,000

5 2042....................................$432,200,000

6 2043....................................$445,100,000

7 Beginning July 1, 2021 and until July 1, 2022, subject to

8 the payment of amounts into the State and Local Sales Tax

9 Reform Fund, the Build Illinois Fund, the McCormick Place

10 Expansion Project Fund, the Illinois Tax Increment Fund, the

11 Energy Infrastructure Fund, and the Tax Compliance and

12 Administration Fund as provided in this Section, the

13 Department shall pay each month into the Road Fund the amount

14 estimated to represent 16% of the net revenue realized from

15 the taxes imposed on motor fuel and gasohol. Beginning July 1,

16 2022 and until July 1, 2023, subject to the payment of amounts

17 into the State and Local Sales Tax Reform Fund, the Build

18 Illinois Fund, the McCormick Place Expansion Project Fund, the

19 Illinois Tax Increment Fund, the Energy Infrastructure Fund,

20 and the Tax Compliance and Administration Fund as provided in

21 this Section, the Department shall pay each month into the

22 Road Fund the amount estimated to represent 32% of the net

23 revenue realized from the taxes imposed on motor fuel and

24 gasohol. Beginning July 1, 2023 and until July 1, 2024,

25 subject to the payment of amounts into the State and Local

26 Sales Tax Reform Fund, the Build Illinois Fund, the McCormick

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1 Place Expansion Project Fund, the Illinois Tax Increment Fund,

2 the Energy Infrastructure Fund, and the Tax Compliance and

3 Administration Fund as provided in this Section, the

4 Department shall pay each month into the Road Fund the amount

5 estimated to represent 48% of the net revenue realized from

6 the taxes imposed on motor fuel and gasohol. Beginning July 1,

7 2024 and until July 1, 2025, subject to the payment of amounts

8 into the State and Local Sales Tax Reform Fund, the Build

9 Illinois Fund, the McCormick Place Expansion Project Fund, the

10 Illinois Tax Increment Fund, the Energy Infrastructure Fund,

11 and the Tax Compliance and Administration Fund as provided in

12 this Section, the Department shall pay each month into the

13 Road Fund the amount estimated to represent 64% of the net

14 revenue realized from the taxes imposed on motor fuel and

15 gasohol. Beginning on July 1, 2025, subject to the payment of

16 amounts into the State and Local Sales Tax Reform Fund, the

17 Build Illinois Fund, the McCormick Place Expansion Project

18 Fund, the Illinois Tax Increment Fund, the Energy

19 Infrastructure Fund, and the Tax Compliance and Administration

20 Fund as provided in this Section, the Department shall pay

21 each month into the Road Fund the amount estimated to

22 represent 80% of the net revenue realized from the taxes

23 imposed on motor fuel and gasohol. As used in this paragraph

24 "motor fuel" has the meaning given to that term in Section 1.1

25 of the Motor Fuel Tax Law, and "gasohol" has the meaning given

26 to that term in Section 3-40 of this Act.

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1 Of the remainder of the moneys received by the Department

2 pursuant to this Act, 75% thereof shall be paid into the State

3 Treasury and 25% shall be reserved in a special account and

4 used only for the transfer to the Common School Fund as part of

5 the monthly transfer from the General Revenue Fund in

6 accordance with Section 8a of the State Finance Act.

7 As soon as possible after the first day of each month, upon

8 certification of the Department of Revenue, the Comptroller

9 shall order transferred and the Treasurer shall transfer from

10 the General Revenue Fund to the Motor Fuel Tax Fund an amount

11 equal to 1.7% of 80% of the net revenue realized under this Act

12 for the second preceding month. Beginning April 1, 2000, this

13 transfer is no longer required and shall not be made.

14 Net revenue realized for a month shall be the revenue

15 collected by the State pursuant to this Act, less the amount

16 paid out during that month as refunds to taxpayers for

17 overpayment of liability.

18 For greater simplicity of administration, manufacturers,

19 importers and wholesalers whose products are sold at retail in

20 Illinois by numerous retailers, and who wish to do so, may

21 assume the responsibility for accounting and paying to the

22 Department all tax accruing under this Act with respect to

23 such sales, if the retailers who are affected do not make

24 written objection to the Department to this arrangement.

25 (Source: P.A. 101-10, Article 15, Section 15-10, eff. 6-5-19;

26 101-10, Article 25, Section 25-105, eff. 6-5-19; 101-27, eff.

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1 6-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19;

2 101-636, eff. 6-10-20; 102-700, Article 60, Section 60-15,

3 eff. 4-19-22; 102-700, Article 65, Section 65-5, eff. 4-19-22;

4 102-1019, eff. 1-1-23; revised 12-13-22.)

5 Section 15. The Retailers' Occupation Tax Act is amended

6 by changing Sections 2-8, 2-10 and 3 as follows:

7 (35 ILCS 120/2-8)

8 Sec. 2-8. Sales tax holiday items.

9 (a) Any tangible personal property described in this

10 subsection is a sales tax holiday item and qualifies for the

11 1.25% reduced rate of tax for the sales tax holiday period

12 ~~period set forth in Section 2-10 of this Act (hereinafter~~

13 ~~referred to as the Sales Tax Holiday Period)~~. The reduced rate

14 on these items shall be administered under the provisions of

15 subsection (b) of this Section. The following items are

16 subject to the reduced rate:

17 (1) Clothing items that each have a retail selling

18 price of less than $125.

19 "Clothing" means, unless otherwise specified in this

20 Section, all human wearing apparel suitable for general

21 use. "Clothing" does not include clothing accessories,

22 protective equipment, or sport or recreational equipment.

23 "Clothing" includes, but is not limited to: household and

24 shop aprons; athletic supporters; bathing suits and caps;

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1 belts and suspenders; boots; coats and jackets; ear muffs;

2 footlets; gloves and mittens for general use; hats and

3 caps; hosiery; insoles for shoes; lab coats; neckties;

4 overshoes; pantyhose; rainwear; rubber pants; sandals;

5 scarves; shoes and shoelaces; slippers; sneakers; socks

6 and stockings; steel-toed shoes; underwear; and school

7 uniforms.

8 "Clothing accessories" means, but is not limited to:

9 briefcases; cosmetics; hair notions, including, but not

10 limited to barrettes, hair bows, and hair nets; handbags;

11 handkerchiefs; jewelry; non-prescription sunglasses;

12 umbrellas; wallets; watches; and wigs and hair pieces.

13 "Protective equipment" means, but is not limited to:

14 breathing masks; clean room apparel and equipment; ear and

15 hearing protectors; face shields; hard hats; helmets;

16 paint or dust respirators; protective gloves; safety

17 glasses and goggles; safety belts; tool belts; and

18 welder's gloves and masks.

19 "Sport or recreational equipment" means, but is not

20 limited to: ballet and tap shoes; cleated or spiked

21 athletic shoes; gloves, including, but not limited to,

22 baseball, bowling, boxing, hockey, and golf gloves;

23 goggles; hand and elbow guards; life preservers and vests;

24 mouth guards; roller and ice skates; shin guards; shoulder

25 pads; ski boots; waders; and wetsuits and fins.

26 (2) School supplies. "School supplies" means, unless

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1 otherwise specified in this Section, items used by a

2 student in a course of study. The purchase of school

3 supplies for use by persons other than students for use in

4 a course of study are not eligible for the reduced rate of

5 tax. "School supplies" do not include school art supplies;

6 school instructional materials; cameras; film and memory

7 cards; videocameras, tapes, and videotapes; computers;

8 cell phones; Personal Digital Assistants (PDAs); handheld

9 electronic schedulers; and school computer supplies.

10 "School supplies" includes, but is not limited to:

11 binders; book bags; calculators; cellophane tape;

12 blackboard chalk; compasses; composition books; crayons;

13 erasers; expandable, pocket, plastic, and manila folders;

14 glue, paste, and paste sticks; highlighters; index cards;

15 index card boxes; legal pads; lunch boxes; markers;

16 notebooks; paper, including loose leaf ruled notebook

17 paper, copy paper, graph paper, tracing paper, manila

18 paper, colored paper, poster board, and construction

19 paper; pencils; pencil leads; pens; ink and ink refills

20 for pens; pencil boxes and other school supply boxes;

21 pencil sharpeners; protractors; rulers; scissors; and

22 writing tablets.

23 "School art supply" means an item commonly used by a

24 student in a course of study for artwork and includes only

25 the following items: clay and glazes; acrylic, tempera,

26 and oil paint; paintbrushes for artwork; sketch and

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1 drawing pads; and watercolors.

2 "School instructional material" means written material

3 commonly used by a student in a course of study as a

4 reference and to learn the subject being taught and

5 includes only the following items: reference books;

6 reference maps and globes; textbooks; and workbooks.

7 "School computer supply" means an item commonly used

8 by a student in a course of study in which a computer is

9 used and applies only to the following items: flashdrives

10 and other computer data storage devices; data storage

11 media, such as diskettes and compact disks; boxes and

12 cases for disk storage; external ports or drives; computer

13 cases; computer cables; computer printers; and printer

14 cartridges, toner, and ink.

15 (b) Administration. Notwithstanding any other provision of

16 this Act, the reduced rate of tax under Section 3-10 of this

17 Act for clothing and school supplies shall be administered by

18 the Department under the provisions of this subsection (b).

19 (1) Bundled sales. Items that qualify for the reduced

20 rate of tax that are bundled together with items that do

21 not qualify for the reduced rate of tax and that are sold

22 for one itemized price will be subject to the reduced rate

23 of tax only if the value of the items that qualify for the

24 reduced rate of tax exceeds the value of the items that do

25 not qualify for the reduced rate of tax.

26 (2) Coupons and discounts. An unreimbursed discount by

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1 the seller reduces the sales price of the property so that

2 the discounted sales price determines whether the sales

3 price is within a sales tax holiday price threshold. A

4 coupon or other reduction in the sales price is treated as

5 a discount if the seller is not reimbursed for the coupon

6 or reduction amount by a third party.

7 (3) Splitting of items normally sold together.

8 Articles that are normally sold as a single unit must

9 continue to be sold in that manner. Such articles cannot

10 be priced separately and sold as individual items in order

11 to obtain the reduced rate of tax. For example, a pair of

12 shoes cannot have each shoe sold separately so that the

13 sales price of each shoe is within a sales tax holiday

14 price threshold.

15 (4) Rain checks. A rain check is a procedure that

16 allows a customer to purchase an item at a certain price at

17 a later time because the particular item was out of stock.

18 Eligible property that customers purchase during the sales

19 tax holiday period ~~Sales Tax Holiday Period~~with the use

20 of a rain check will qualify for the reduced rate of tax

21 regardless of when the rain check was issued. Issuance of

22 a rain check during the sales tax holiday period ~~Sales Tax~~

23 ~~Holiday Period~~ will not qualify eligible property for the

24 reduced rate of tax if the property is actually purchased

25 after the sales tax holiday period ~~Sales Tax Holiday~~

26 ~~Period~~.

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1 (5) Exchanges. The procedure for an exchange in

2 regards to a sales tax holiday is as follows:

3 (A) If a customer purchases an item of eligible

4 property during the sales tax holiday period ~~Sales Tax~~

5 ~~Holiday Period~~, but later exchanges the item for a

6 similar eligible item, even if a different size,

7 different color, or other feature, no additional tax

8 is due even if the exchange is made after thesales tax

9 holiday period ~~Sales Tax Holiday Period~~.

10 (B) If a customer purchases an item of eligible

11 property during the sales tax holiday period ~~Sales Tax~~

12 ~~Holiday Period~~, but after the sales tax holiday period

13 ~~Sales Tax Holiday Period~~has ended, the customer

14 returns the item and receives credit on the purchase

15 of a different item, the 6.25% general merchandise

16 sales tax rate is due on the sale of the newly

17 purchased item.

18 (C) If a customer purchases an item of eligible

19 property before the sales tax holiday period ~~Sales Tax~~

20 ~~Holiday Period~~, but during the sales tax holiday

21 period ~~Sales Tax Holiday Period~~the customer returns

22 the item and receives credit on the purchase of a

23 different item of eligible property, the reduced rate

24 of tax is due on the sale of the new item if the new

25 item is purchased during the sales tax holiday period

26 ~~Sales Tax Holiday Period~~.

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1 (6) (Blank).

2 (7) Order date and back orders. For the purpose of a

3 sales tax holiday, eligible property qualifies for the

4 reduced rate of tax if: (i) the item is both delivered to

5 and paid for by the customer during the sales tax holiday

6 period ~~Sales Tax Holiday Period~~ or (ii) the customer

7 orders and pays for the item and the seller accepts the

8 order during thesales tax holiday period ~~Sales Tax~~

9 ~~Holiday Period~~for immediate shipment, even if delivery is

10 made after the sales tax holiday period ~~Sales Tax Holiday~~

11 ~~Period~~. The seller accepts an order when the seller has

12 taken action to fill the order for immediate shipment.

13 Actions to fill an order include placement of an "in date"

14 stamp on an order or assignment of an "order number" to an

15 order within the sales tax holiday period~~Sales Tax~~

16 ~~Holiday Period~~. An order is for immediate shipment when

17 the customer does not request delayed shipment. An order

18 is for immediate shipment notwithstanding that the

19 shipment may be delayed because of a backlog of orders or

20 because stock is currently unavailable to, or on back

21 order by, the seller.

22 (8) Returns. For a 60-day period immediately after the

23 sales tax holiday period ~~Sales Tax Holiday Period~~, if a

24 customer returns an item that would qualify for the

25 reduced rate of tax, credit for or refund of sales tax

26 shall be given only at the reduced rate unless the

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1 customer provides a receipt or invoice that shows tax was

2 paid at the 6.25% general merchandise rate, or the seller

3 has sufficient documentation to show that tax was paid at

4 the 6.25% general merchandise rate on the specific item.

5 This 60-day period is set solely for the purpose of

6 designating a time period during which the customer must

7 provide documentation that shows that the appropriate

8 sales tax rate was paid on returned merchandise. The

9 60-day period is not intended to change a seller's policy

10 on the time period during which the seller will accept

11 returns.

12 (b-5) As used in this Section, "sales tax holiday period"

13 means:

14 (1) from August 6, 2010 through August 15, 2010;

15 (2) from August 5, 2022 through August 14, 2022; and

16 (3) from August 2, 2024 through August 11, 2024.

17 (c) The Department may implement the provisions of this

18 Section through the use of emergency rules, along with

19 permanent rules filed concurrently with such emergency rules,

20 in accordance with the provisions of Section 5-45 of the

21 Illinois Administrative Procedure Act. For purposes of the

22 Illinois Administrative Procedure Act, the adoption of rules

23 to implement the provisions of this Section shall be deemed an

24 emergency and necessary for the public interest, safety, and

25 welfare.

26 (Source: P.A. 102-700, eff. 4-19-22.)

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1 (35 ILCS 120/2-10)

2 Sec. 2-10. Rate of tax. Unless otherwise provided in this

3 Section, the tax imposed by this Act is at the rate of 6.25% of

4 gross receipts from sales of tangible personal property made

5 in the course of business.

6 Beginning on July 1, 2000 and through December 31, 2000,

7 with respect to motor fuel, as defined in Section 1.1 of the

8 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of

9 the Use Tax Act, the tax is imposed at the rate of 1.25%.

10 During the sales tax holiday period, as defined in Section

11 2-8 ~~Beginning on August 6, 2010 through August 15, 2010, and~~

12 ~~beginning again on August 5, 2022 through August 14, 2022~~,

13 with respect to sales tax holiday items described ~~as defined~~

14 in Section 2-8 ~~of this Act~~, the tax is imposed at the rate of

15 1.25%.

16 Within 14 days after July 1, 2000 (the effective date of

17 Public Act 91-872) ~~this amendatory Act of the 91st General~~

18 ~~Assembly~~, each retailer of motor fuel and gasohol shall cause

19 the following notice to be posted in a prominently visible

20 place on each retail dispensing device that is used to

21 dispense motor fuel or gasohol in the State of Illinois: "As of

22 July 1, 2000, the State of Illinois has eliminated the State's

23 share of sales tax on motor fuel and gasohol through December

24 31, 2000. The price on this pump should reflect the

25 elimination of the tax." The notice shall be printed in bold

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1 print on a sign that is no smaller than 4 inches by 8 inches.

2 The sign shall be clearly visible to customers. Any retailer

3 who fails to post or maintain a required sign through December

4 31, 2000 is guilty of a petty offense for which the fine shall

5 be $500 per day per each retail premises where a violation

6 occurs.

7 With respect to gasohol, as defined in the Use Tax Act, the

8 tax imposed by this Act applies to (i) 70% of the proceeds of

9 sales made on or after January 1, 1990, and before July 1,

10 2003, (ii) 80% of the proceeds of sales made on or after July

11 1, 2003 and on or before July 1, 2017, and (iii) 100% of the

12 proceeds of sales made thereafter. If, at any time, however,

13 the tax under this Act on sales of gasohol, as defined in the

14 Use Tax Act, is imposed at the rate of 1.25%, then the tax

15 imposed by this Act applies to 100% of the proceeds of sales of

16 gasohol made during that time.

17 With respect to majority blended ethanol fuel, as defined

18 in the Use Tax Act, the tax imposed by this Act does not apply

19 to the proceeds of sales made on or after July 1, 2003 and on

20 or before December 31, 2023 but applies to 100% of the proceeds

21 of sales made thereafter.

22 With respect to biodiesel blends, as defined in the Use

23 Tax Act, with no less than 1% and no more than 10% biodiesel,

24 the tax imposed by this Act applies to (i) 80% of the proceeds

25 of sales made on or after July 1, 2003 and on or before

26 December 31, 2018 and (ii) 100% of the proceeds of sales made

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1 after December 31, 2018 and before January 1, 2024. On and

2 after January 1, 2024 and on or before December 31, 2030, the

3 taxation of biodiesel, renewable diesel, and biodiesel blends

4 shall be as provided in Section 3-5.1 of the Use Tax Act. If,

5 at any time, however, the tax under this Act on sales of

6 biodiesel blends, as defined in the Use Tax Act, with no less

7 than 1% and no more than 10% biodiesel is imposed at the rate

8 of 1.25%, then the tax imposed by this Act applies to 100% of

9 the proceeds of sales of biodiesel blends with no less than 1%

10 and no more than 10% biodiesel made during that time.

11 With respect to biodiesel, as defined in the Use Tax Act,

12 and biodiesel blends, as defined in the Use Tax Act, with more

13 than 10% but no more than 99% biodiesel, the tax imposed by

14 this Act does not apply to the proceeds of sales made on or

15 after July 1, 2003 and on or before December 31, 2023. On and

16 after January 1, 2024 and on or before December 31, 2030, the

17 taxation of biodiesel, renewable diesel, and biodiesel blends

18 shall be as provided in Section 3-5.1 of the Use Tax Act.

19 Until July 1, 2022 and beginning again on July 1, 2023,

20 with respect to food for human consumption that is to be

21 consumed off the premises where it is sold (other than

22 alcoholic beverages, food consisting of or infused with adult

23 use cannabis, soft drinks, and food that has been prepared for

24 immediate consumption), the tax is imposed at the rate of 1%.

25 Beginning July 1, 2022 and until July 1, 2023, with respect to

26 food for human consumption that is to be consumed off the

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1 premises where it is sold (other than alcoholic beverages,

2 food consisting of or infused with adult use cannabis, soft

3 drinks, and food that has been prepared for immediate

4 consumption), the tax is imposed at the rate of 0%.

5 With respect to prescription and nonprescription

6 medicines, drugs, medical appliances, products classified as

7 Class III medical devices by the United States Food and Drug

8 Administration that are used for cancer treatment pursuant to

9 a prescription, as well as any accessories and components

10 related to those devices, modifications to a motor vehicle for

11 the purpose of rendering it usable by a person with a

12 disability, and insulin, blood sugar testing materials,

13 syringes, and needles used by human diabetics, the tax is

14 imposed at the rate of 1%. For the purposes of this Section,

15 until September 1, 2009: the term "soft drinks" means any

16 complete, finished, ready-to-use, non-alcoholic drink, whether

17 carbonated or not, including, but not limited to,soda water,

18 cola, fruit juice, vegetable juice, carbonated water, and all

19 other preparations commonly known as soft drinks of whatever

20 kind or description that are contained in any closed or sealed

21 bottle, can, carton, or container, regardless of size; but

22 "soft drinks" does not include coffee, tea, non-carbonated

23 water, infant formula, milk or milk products as defined in the

24 Grade A Pasteurized Milk and Milk Products Act, or drinks

25 containing 50% or more natural fruit or vegetable juice.

26 Notwithstanding any other provisions of this Act,

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1 beginning September 1, 2009, "soft drinks" means non-alcoholic

2 beverages that contain natural or artificial sweeteners. "Soft

3 drinks" does ~~do~~ not include beverages that contain milk or

4 milk products, soy, rice or similar milk substitutes, or

5 greater than 50% of vegetable or fruit juice by volume.

6 Until August 1, 2009, and notwithstanding any other

7 provisions of this Act, "food for human consumption that is to

8 be consumed off the premises where it is sold" includes all

9 food sold through a vending machine, except soft drinks and

10 food products that are dispensed hot from a vending machine,

11 regardless of the location of the vending machine. Beginning

12 August 1, 2009, and notwithstanding any other provisions of

13 this Act, "food for human consumption that is to be consumed

14 off the premises where it is sold" includes all food sold

15 through a vending machine, except soft drinks, candy, and food

16 products that are dispensed hot from a vending machine,

17 regardless of the location of the vending machine.

18 Notwithstanding any other provisions of this Act,

19 beginning September 1, 2009, "food for human consumption that

20 is to be consumed off the premises where it is sold" does not

21 include candy. For purposes of this Section, "candy" means a

22 preparation of sugar, honey, or other natural or artificial

23 sweeteners in combination with chocolate, fruits, nuts or

24 other ingredients or flavorings in the form of bars, drops, or

25 pieces. "Candy" does not include any preparation that contains

26 flour or requires refrigeration.

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1 Notwithstanding any other provisions of this Act,

2 beginning September 1, 2009, "nonprescription medicines and

3 drugs" does not include grooming and hygiene products. For

4 purposes of this Section, "grooming and hygiene products"

5 includes, but is not limited to, soaps and cleaning solutions,

6 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan

7 lotions and screens, unless those products are available by

8 prescription only, regardless of whether the products meet the

9 definition of "over-the-counter-drugs". For the purposes of

10 this paragraph, "over-the-counter-drug" means a drug for human

11 use that contains a label that identifies the product as a drug

12 as required by 21 CFR ~~C.F.R. �~~ 201.66. The

13 "over-the-counter-drug" label includes:

14 (A) a ~~A~~ "Drug Facts" panel; or

15 (B) a ~~A~~ statement of the "active ingredient(s)" with a

16 list of those ingredients contained in the compound,

17 substance or preparation.

18 Beginning on January 1, 2014 (the effective date of Public

19 Act 98-122) ~~this amendatory Act of the 98th General Assembly~~,

20 "prescription and nonprescription medicines and drugs"

21 includes medical cannabis purchased from a registered

22 dispensing organization under the Compassionate Use of Medical

23 Cannabis Program Act.

24 As used in this Section, "adult use cannabis" means

25 cannabis subject to tax under the Cannabis Cultivation

26 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law

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1 and does not include cannabis subject to tax under the

2 Compassionate Use of Medical Cannabis Program Act.

3 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;

4 102-4, eff. 4-27-21; 102-700, Article 20, Section 20-20, eff.

5 4-19-22; 102-700, Article 60, Section 60-30, eff. 4-19-22;

6 102-700, Article 65, Section 65-10, eff. 4-19-22; revised

7 6-1-22.)

8 (35 ILCS 120/3) (from Ch. 120, par. 442)

9 Sec. 3. Except as provided in this Section, on or before

10 the twentieth day of each calendar month, every person engaged

11 in the business of selling tangible personal property at

12 retail in this State during the preceding calendar month shall

13 file a return with the Department, stating:

14 1. The name of the seller;

15 2. His residence address and the address of his

16 principal place of business and the address of the

17 principal place of business (if that is a different

18 address) from which he engages in the business of selling

19 tangible personal property at retail in this State;

20 3. Total amount of receipts received by him during the

21 preceding calendar month or quarter, as the case may be,

22 from sales of tangible personal property, and from

23 services furnished, by him during such preceding calendar

24 month or quarter;

25 4. Total amount received by him during the preceding

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1 calendar month or quarter on charge and time sales of

2 tangible personal property, and from services furnished,

3 by him prior to the month or quarter for which the return

4 is filed;

5 5. Deductions allowed by law;

6 6. Gross receipts which were received by him during

7 the preceding calendar month or quarter and upon the basis

8 of which the tax is imposed, including gross receipts on

9 food for human consumption that is to be consumed off the

10 premises where it is sold (other than alcoholic beverages,

11 food consisting of or infused with adult use cannabis,

12 soft drinks, and food that has been prepared for immediate

13 consumption) which were received during the preceding

14 calendar month or quarter and upon which tax would have

15 been due but for the 0% rate imposed under Public Act

16 102-700 ~~this amendatory Act of the 102nd General Assembly~~;

17 7. The amount of credit provided in Section 2d of this

18 Act;

19 8. The amount of tax due, including the amount of tax

20 that would have been due on food for human consumption

21 that is to be consumed off the premises where it is sold

22 (other than alcoholic beverages, food consisting of or

23 infused with adult use cannabis, soft drinks, and food

24 that has been prepared for immediate consumption) but for

25 the 0% rate imposed under Public Act 102-700 ~~this~~

26 ~~amendatory Act of the 102nd General Assembly~~;

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1 9. The signature of the taxpayer; and

2 10. Such other reasonable information as the

3 Department may require.

4 On and after January 1, 2018, except for returns required

5 to be filed prior to January 1, 2023 for motor vehicles,

6 watercraft, aircraft, and trailers that are required to be

7 registered with an agency of this State, with respect to

8 retailers whose annual gross receipts average $20,000 or more,

9 all returns required to be filed pursuant to this Act shall be

10 filed electronically. On and after January 1, 2023, with

11 respect to retailers whose annual gross receipts average

12 $20,000 or more, all returns required to be filed pursuant to

13 this Act, including, but not limited to, returns for motor

14 vehicles, watercraft, aircraft, and trailers that are required

15 to be registered with an agency of this State, shall be filed

16 electronically. Retailers who demonstrate that they do not

17 have access to the Internet or demonstrate hardship in filing

18 electronically may petition the Department to waive the

19 electronic filing requirement.

20 If a taxpayer fails to sign a return within 30 days after

21 the proper notice and demand for signature by the Department,

22 the return shall be considered valid and any amount shown to be

23 due on the return shall be deemed assessed.

24 Each return shall be accompanied by the statement of

25 prepaid tax issued pursuant to Section 2e for which credit is

26 claimed.

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1 Prior to October 1, 2003, and on and after September 1,

2 2004 a retailer may accept a Manufacturer's Purchase Credit

3 certification from a purchaser in satisfaction of Use Tax as

4 provided in Section 3-85 of the Use Tax Act if the purchaser

5 provides the appropriate documentation as required by Section

6 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit

7 certification, accepted by a retailer prior to October 1, 2003

8 and on and after September 1, 2004 as provided in Section 3-85

9 of the Use Tax Act, may be used by that retailer to satisfy

10 Retailers' Occupation Tax liability in the amount claimed in

11 the certification, not to exceed 6.25% of the receipts subject

12 to tax from a qualifying purchase. A Manufacturer's Purchase

13 Credit reported on any original or amended return filed under

14 this Act after October 20, 2003 for reporting periods prior to

15 September 1, 2004 shall be disallowed. Manufacturer's Purchase

16 Credit reported on annual returns due on or after January 1,

17 2005 will be disallowed for periods prior to September 1,

18 2004. No Manufacturer's Purchase Credit may be used after

19 September 30, 2003 through August 31, 2004 to satisfy any tax

20 liability imposed under this Act, including any audit

21 liability.

22 The Department may require returns to be filed on a

23 quarterly basis. If so required, a return for each calendar

24 quarter shall be filed on or before the twentieth day of the

25 calendar month following the end of such calendar quarter. The

26 taxpayer shall also file a return with the Department for each

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1 of the first two months of each calendar quarter, on or before

2 the twentieth day of the following calendar month, stating:

3 1. The name of the seller;

4 2. The address of the principal place of business from

5 which he engages in the business of selling tangible

6 personal property at retail in this State;

7 3. The total amount of taxable receipts received by

8 him during the preceding calendar month from sales of

9 tangible personal property by him during such preceding

10 calendar month, including receipts from charge and time

11 sales, but less all deductions allowed by law;

12 4. The amount of credit provided in Section 2d of this

13 Act;

14 5. The amount of tax due; and

15 6. Such other reasonable information as the Department

16 may require.

17 Every person engaged in the business of selling aviation

18 fuel at retail in this State during the preceding calendar

19 month shall, instead of reporting and paying tax as otherwise

20 required by this Section, report and pay such tax on a separate

21 aviation fuel tax return. The requirements related to the

22 return shall be as otherwise provided in this Section.

23 Notwithstanding any other provisions of this Act to the

24 contrary, retailers selling aviation fuel shall file all

25 aviation fuel tax returns and shall make all aviation fuel tax

26 payments by electronic means in the manner and form required

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1 by the Department. For purposes of this Section, "aviation

2 fuel" means jet fuel and aviation gasoline.

3 Beginning on October 1, 2003, any person who is not a

4 licensed distributor, importing distributor, or manufacturer,

5 as defined in the Liquor Control Act of 1934, but is engaged in

6 the business of selling, at retail, alcoholic liquor shall

7 file a statement with the Department of Revenue, in a format

8 and at a time prescribed by the Department, showing the total

9 amount paid for alcoholic liquor purchased during the

10 preceding month and such other information as is reasonably

11 required by the Department. The Department may adopt rules to

12 require that this statement be filed in an electronic or

13 telephonic format. Such rules may provide for exceptions from

14 the filing requirements of this paragraph. For the purposes of

15 this paragraph, the term "alcoholic liquor" shall have the

16 meaning prescribed in the Liquor Control Act of 1934.

17 Beginning on October 1, 2003, every distributor, importing

18 distributor, and manufacturer of alcoholic liquor as defined

19 in the Liquor Control Act of 1934, shall file a statement with

20 the Department of Revenue, no later than the 10th day of the

21 month for the preceding month during which transactions

22 occurred, by electronic means, showing the total amount of

23 gross receipts from the sale of alcoholic liquor sold or

24 distributed during the preceding month to purchasers;

25 identifying the purchaser to whom it was sold or distributed;

26 the purchaser's tax registration number; and such other

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1 information reasonably required by the Department. A

2 distributor, importing distributor, or manufacturer of

3 alcoholic liquor must personally deliver, mail, or provide by

4 electronic means to each retailer listed on the monthly

5 statement a report containing a cumulative total of that

6 distributor's, importing distributor's, or manufacturer's

7 total sales of alcoholic liquor to that retailer no later than

8 the 10th day of the month for the preceding month during which

9 the transaction occurred. The distributor, importing

10 distributor, or manufacturer shall notify the retailer as to

11 the method by which the distributor, importing distributor, or

12 manufacturer will provide the sales information. If the

13 retailer is unable to receive the sales information by

14 electronic means, the distributor, importing distributor, or

15 manufacturer shall furnish the sales information by personal

16 delivery or by mail. For purposes of this paragraph, the term

17 "electronic means" includes, but is not limited to, the use of

18 a secure Internet website, e-mail, or facsimile.

19 If a total amount of less than $1 is payable, refundable or

20 creditable, such amount shall be disregarded if it is less

21 than 50 cents and shall be increased to $1 if it is 50 cents or

22 more.

23 Notwithstanding any other provision of this Act to the

24 contrary, retailers subject to tax on cannabis shall file all

25 cannabis tax returns and shall make all cannabis tax payments

26 by electronic means in the manner and form required by the

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1 Department.

2 Beginning October 1, 1993, a taxpayer who has an average

3 monthly tax liability of $150,000 or more shall make all

4 payments required by rules of the Department by electronic

5 funds transfer. Beginning October 1, 1994, a taxpayer who has

6 an average monthly tax liability of $100,000 or more shall

7 make all payments required by rules of the Department by

8 electronic funds transfer. Beginning October 1, 1995, a

9 taxpayer who has an average monthly tax liability of $50,000

10 or more shall make all payments required by rules of the

11 Department by electronic funds transfer. Beginning October 1,

12 2000, a taxpayer who has an annual tax liability of $200,000 or

13 more shall make all payments required by rules of the

14 Department by electronic funds transfer. The term "annual tax

15 liability" shall be the sum of the taxpayer's liabilities

16 under this Act, and under all other State and local occupation

17 and use tax laws administered by the Department, for the

18 immediately preceding calendar year. The term "average monthly

19 tax liability" shall be the sum of the taxpayer's liabilities

20 under this Act, and under all other State and local occupation

21 and use tax laws administered by the Department, for the

22 immediately preceding calendar year divided by 12. Beginning

23 on October 1, 2002, a taxpayer who has a tax liability in the

24 amount set forth in subsection (b) of Section 2505-210 of the

25 Department of Revenue Law shall make all payments required by

26 rules of the Department by electronic funds transfer.

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1 Before August 1 of each year beginning in 1993, the

2 Department shall notify all taxpayers required to make

3 payments by electronic funds transfer. All taxpayers required

4 to make payments by electronic funds transfer shall make those

5 payments for a minimum of one year beginning on October 1.

6 Any taxpayer not required to make payments by electronic

7 funds transfer may make payments by electronic funds transfer

8 with the permission of the Department.

9 All taxpayers required to make payment by electronic funds

10 transfer and any taxpayers authorized to voluntarily make

11 payments by electronic funds transfer shall make those

12 payments in the manner authorized by the Department.

13 The Department shall adopt such rules as are necessary to

14 effectuate a program of electronic funds transfer and the

15 requirements of this Section.

16 Any amount which is required to be shown or reported on any

17 return or other document under this Act shall, if such amount

18 is not a whole-dollar amount, be increased to the nearest

19 whole-dollar amount in any case where the fractional part of a

20 dollar is 50 cents or more, and decreased to the nearest

21 whole-dollar amount where the fractional part of a dollar is

22 less than 50 cents.

23 If the retailer is otherwise required to file a monthly

24 return and if the retailer's average monthly tax liability to

25 the Department does not exceed $200, the Department may

26 authorize his returns to be filed on a quarter annual basis,

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1 with the return for January, February and March of a given year

2 being due by April 20 of such year; with the return for April,

3 May and June of a given year being due by July 20 of such year;

4 with the return for July, August and September of a given year

5 being due by October 20 of such year, and with the return for

6 October, November and December of a given year being due by

7 January 20 of the following year.

8 If the retailer is otherwise required to file a monthly or

9 quarterly return and if the retailer's average monthly tax

10 liability with the Department does not exceed $50, the

11 Department may authorize his returns to be filed on an annual

12 basis, with the return for a given year being due by January 20

13 of the following year.

14 Such quarter annual and annual returns, as to form and

15 substance, shall be subject to the same requirements as

16 monthly returns.

17 Notwithstanding any other provision in this Act concerning

18 the time within which a retailer may file his return, in the

19 case of any retailer who ceases to engage in a kind of business

20 which makes him responsible for filing returns under this Act,

21 such retailer shall file a final return under this Act with the

22 Department not more than one month after discontinuing such

23 business.

24 Where the same person has more than one business

25 registered with the Department under separate registrations

26 under this Act, such person may not file each return that is

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1 due as a single return covering all such registered

2 businesses, but shall file separate returns for each such

3 registered business.