Bill Text: IL HB4951 | 2023-2024 | 103rd General Assembly | Chaptered

---

Bill Title: Creates the Workforce Development through Charitable Loan Repayment Act. Creates the Workforce Development through Charitable Loan Repayment Program for the purpose of facilitating student loan repayment assistance for qualified workers. Provides that the Program shall be administered by qualified community foundations with the assistance of the Illinois Student Assistance Commission. Creates the Local Journalism Sustainability Act. Creates a withholding tax credit for local news organizations. Creates the Music and Creates the Musicians Tax Credit and Jobs Act. Provides that the Department of Commerce and Economic Opportunity may award credits to qualified music companies. Creates the Ground-Based Sparkler Purchaser Excise Tax Act. Imposes a tax, beginning January 1, 2025, upon purchasers for the privilege of using ground-based sparklers and not for the purpose of resale at the rate of 3% of the purchase price of ground-based sparklers. Creates the Interchange Fee Prohibition Act. Provides that, subject to certain exceptions, a payment card network, an acquirer bank, or a processor may not receive or charge a merchant any interchange fee on the tax amount or gratuity of an electronic payment transaction if the merchant informs the acquirer bank or its designee of the tax or gratuity amount as part of the authorization or settlement process for the electronic payment transaction. Amends various Acts concerning State and local revenue and finance. Creates the Illinois Gives Tax Credit Act. Provides that the Department of Revenue shall award income tax credits to taxpayers who provide an endowment gift to a permanent endowment fund during the taxable year and receive a certificate of receipt for that gift. Provides that the credit is equal to 25% of the endowment gift. Contains provisions setting forth maximum credit amounts. Amends the Illinois Income Tax Act to require an addition modification equal to the amount of any federal deduction claimed for an endowment gift for which a taxpayer receives a credit under the Illinois Gives Tax Credit Act. Amends the Community Mental Health Act. Provides that in any county with a county executive form of government, if applicable, the county executive shall appoint the community mental health board with the advice and consent of the county board. Provides that a community mental health board may provide advice to the governing body and may establish a policy and procedure for the acceptance and review of applications from interested residents prior to making a recommendation to the appointing authority. Provides that an annual tax levied by any governmental unit under the Act is separate and distinct from all other property taxes levied by that governmental unit and (1) shall not be considered an increase for purposes of the application of the Truth in Taxation Law and its requirements and (2) shall not be subject to the Property Tax Extension Limitation Law. Provides that in addition, the ballot for any proposition submitted pursuant to levy a tax in order to provide the necessary funds or to supplement existing funds for community mental health facilities and services, including facilities and services for the person with a developmental disability or a substance use disorder, shall have printed on the ballot, but not as part of the proposition submitted, only the following supplemental information (which shall be supplied to the election authority by the taxing district) in substantially the following form: (1) the approximate amount of taxes extendable at the most recently extended limiting rate and the approximate amount of taxes extendable if the proposition is approved and (2) for the first levy year for which the new rate or increase limiting rate will be applicable levy year the approximate amount of the additional tax extendable against property containing a single family residence and having a fair market value at the time of the referendum of $100,000 is estimated to be. Provides that if a proposition contains the language in substantially the form provided in the law, the referendum is valid notwithstanding any other provision of the law. Provides that nothing in these provisions prevents a governmental unit from levying less than the amount approved by the voters via referendum in any given year or varying the amount levied from year to year as approved by the governmental unit. Provides that changes made by the Act apply to referenda creating community mental health boards, including community mental health boards located in counties that have adopted a county executive form of government under the Counties Code, to levy an annual tax for the establishment and maintenance of mental health facilities and services for residents of the community that were approved or validated on or after January 1, 2020 and to referenda that are approved on or after the effective date of the Act. Deletes a provision that a community mental health board may be representative of medical societies. Provides that a community mental health board may be representative of individuals with professional or lived expertise in mental health, developmental disabilities, and substance abuse. Provides that vacancies on a community mental health board shall be filled with the advice of the community mental health board, who may establish a policy and procedure for the acceptance and review of applications from interested residents prior to making a recommendation to the appointing authority. Provides that if the community mental health board has already held or scheduled an election of officers to take place prior to July 1, an additional election is not required on the basis of the appointment or reappointment of a member to the community mental health board. Provides that the community mental health board shall publish the annual budget and report within 180 (rather than 120) days after the end of the fiscal year in a newspaper distributed within the jurisdiction of the board, or, if no newspaper is published within the jurisdiction of the board, then one published in the county, or, if no newspaper is published in the county, then in a newspaper having general circulation within the jurisdiction of the board. Provides that a community mental health board may establish professional incentive programs for the purposes of workforce development and retention that may include education assistance, student loan repayment, professional certification and licensure assistance, and internship stipends. Provides that the annual report of a community mental health board detailing the income received and disbursements made pursuant to the Act during the fiscal year just preceding the date the annual report is submitted shall be submitted within 180 (rather than 90) days of the end (rather than close) of that fiscal year. Amends the Property Tax Code to make conforming changes. Makes conforming changes. Effective immediately, except that some provisions take effect July 1, 2024, some provisions take effect January 1, 2025, and some provisions take effect February 1, 2025.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Passed) 2024-06-10 - Added as Alternate Chief Co-Sponsor Sen. Elgie R. Sims, Jr. [HB4951 Detail]

Download: Illinois-2023-HB4951-Chaptered.html

---

Public Act 103-0592
HB4951 Enrolled LRB103 38094 HLH 68226 b
AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
ARTICLE 5.
Section 5-5. The Department of Revenue Law of the Civil
Administrative Code of Illinois is amended by adding Section
2505-815 as follows:
(20 ILCS 2505/2505-815 new)
Sec. 2505-815. County Official Compensation Task Force.
(a) The County Official Compensation Task Force is created
to review the compensation of county-level officials as
provided for in various State statutes and to make
recommendations to the General Assembly on any appropriate
changes to those statutes, including implementation dates.
(b) The members of the Task Force shall be as follows:
(1) the Director of Revenue or the Director's
designee, who shall serve as the chair of the Task Force;
(2) two representatives from a statewide organization
that represents chief county assessment officers, with one
representative from a county with a 2020 population of
fewer than 25,000 persons and one representative from a
county with a 2020 population of 25,000 or more, to be

appointed by the Director of Revenue;
(3) two representatives from a statewide organization
that represents county auditors, with one representative
from a county with a 2020 population of fewer than 25,000
persons and one representative from a county with a 2020
population of 25,000 or more, to be appointed by the
Director of Revenue;
(4) two representatives from a statewide organization
that represents county clerks and recorders, with one
representative from a county with a 2020 population of
fewer than 25,000 persons and one representative from a
county with a 2020 population of 25,000 or more, to be
appointed by the Director of Revenue;
(5) two representatives from a statewide organization
that represents circuit clerks, with one representative
from a county with a 2020 population of fewer than 25,000
persons and one representative from a county with a 2020
population of 25,000 or more, to be appointed by the Chief
Justice of the Supreme Court;
(6) two representatives from a statewide organization
that represents county treasurers, with one representative
from a county with a 2020 population of fewer than 25,000
persons and one representative from a county with a 2020
population of 25,000 or more, to be appointed by the
Director of Revenue;
(7) four representatives from a statewide organization

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

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

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

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

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

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

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

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

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

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

If the taxpayer continues to own property through
the last day of the last tax year for which a
subtraction is allowed with respect to that property
under subparagraph (Z) and for which the taxpayer was
allowed in any taxable year to make a subtraction
modification under subparagraph (Z), then an amount
equal to that subtraction modification.
The taxpayer is required to make the addition
modification under this subparagraph only once with
respect to any one piece of property;
(D-17) An amount equal to the amount otherwise
allowed as a deduction in computing base income for
interest paid, accrued, or incurred, directly or
indirectly, (i) for taxable years ending on or after
December 31, 2004, to a foreign person who would be a
member of the same unitary business group but for the
fact that foreign person's business activity outside
the United States is 80% or more of the foreign
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business
group but for the fact that the person is prohibited
under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily
required to apportion business income under different
subsections of Section 304. The addition modification

required by this subparagraph shall be reduced to the
extent that dividends were included in base income of
the unitary group for the same taxable year and
received by the taxpayer or by a member of the
taxpayer's unitary business group (including amounts
included in gross income under Sections 951 through
964 of the Internal Revenue Code and amounts included
in gross income under Section 78 of the Internal
Revenue Code) with respect to the stock of the same
person to whom the interest was paid, accrued, or
incurred.
This paragraph shall not apply to the following:
(i) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person who
is subject in a foreign country or state, other
than a state which requires mandatory unitary
reporting, to a tax on or measured by net income
with respect to such interest; or
(ii) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer can establish, based on a
preponderance of the evidence, both of the
following:
(a) the person, during the same taxable
year, paid, accrued, or incurred, the interest
to a person that is not a related member, and

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

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

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

indirectly, from a transaction with a person who
is subject in a foreign country or state, other
than a state which requires mandatory unitary
reporting, to a tax on or measured by net income
with respect to such item; or
(ii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, if the taxpayer can establish, based
on a preponderance of the evidence, both of the
following:
(a) the person during the same taxable
year paid, accrued, or incurred, the
intangible expense or cost to a person that is
not a related member, and
(b) the transaction giving rise to the
intangible expense or cost between the
taxpayer and the person did not have as a
principal purpose the avoidance of Illinois
income tax, and is paid pursuant to a contract
or agreement that reflects arm's-length terms;
or
(iii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person if
the taxpayer establishes by clear and convincing
evidence, that the adjustments are unreasonable;

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

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

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

out-of-state program in the same manner that the
out-of-state program distributes its offering
materials;
(D-20.5) For taxable years beginning on or after
January 1, 2018, in the case of a distribution from a
qualified ABLE program under Section 529A of the
Internal Revenue Code, other than a distribution from
a qualified ABLE program created under Section 16.6 of
the State Treasurer Act, an amount equal to the amount
excluded from gross income under Section 529A(c)(1)(B)
of the Internal Revenue Code;
(D-21) For taxable years beginning on or after
January 1, 2007, in the case of transfer of moneys from
a qualified tuition program under Section 529 of the
Internal Revenue Code that is administered by the
State to an out-of-state program, an amount equal to
the amount of moneys previously deducted from base
income under subsection (a)(2)(Y) of this Section;
(D-21.5) For taxable years beginning on or after
January 1, 2018, in the case of the transfer of moneys
from a qualified tuition program under Section 529 or
a qualified ABLE program under Section 529A of the
Internal Revenue Code that is administered by this
State to an ABLE account established under an
out-of-state ABLE account program, an amount equal to
the contribution component of the transferred amount

that was previously deducted from base income under
subsection (a)(2)(Y) or subsection (a)(2)(HH) of this
Section;
(D-22) For taxable years beginning on or after
January 1, 2009, and prior to January 1, 2018, in the
case of a nonqualified withdrawal or refund of moneys
from a qualified tuition program under Section 529 of
the Internal Revenue Code administered by the State
that is not used for qualified expenses at an eligible
education institution, an amount equal to the
contribution component of the nonqualified withdrawal
or refund that was previously deducted from base
income under subsection (a)(2)(y) of this Section,
provided that the withdrawal or refund did not result
from the beneficiary's death or disability. For
taxable years beginning on or after January 1, 2018:
(1) in the case of a nonqualified withdrawal or
refund, as defined under Section 16.5 of the State
Treasurer Act, of moneys from a qualified tuition
program under Section 529 of the Internal Revenue Code
administered by the State, an amount equal to the
contribution component of the nonqualified withdrawal
or refund that was previously deducted from base
income under subsection (a)(2)(Y) of this Section, and
(2) in the case of a nonqualified withdrawal or refund
from a qualified ABLE program under Section 529A of

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

compensation paid or accrued to a resident who as a
governmental employee was a prisoner of war or missing
in action, and in respect of any compensation paid to a
resident in 1971 or thereafter for annual training
performed pursuant to Sections 502 and 503, Title 32,
United States Code as a member of the Illinois
National Guard or, beginning with taxable years ending
on or after December 31, 2007, the National Guard of
any other state. For taxable years ending on or after
December 31, 2001, any amount included in such total
in respect of any compensation (including but not
limited to any compensation paid or accrued to a
serviceman while a prisoner of war or missing in
action) paid to a resident by reason of being a member
of any component of the Armed Forces of the United
States and in respect of any compensation paid or
accrued to a resident who as a governmental employee
was a prisoner of war or missing in action, and in
respect of any compensation paid to a resident in 2001
or thereafter by reason of being a member of the
Illinois National Guard or, beginning with taxable
years ending on or after December 31, 2007, the
National Guard of any other state. The provisions of
this subparagraph (E) are exempt from the provisions
of Section 250;
(F) An amount equal to all amounts included in

such total pursuant to the provisions of Sections
402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
408 of the Internal Revenue Code, or included in such
total as distributions under the provisions of any
retirement or disability plan for employees of any
governmental agency or unit, or retirement payments to
retired partners, which payments are excluded in
computing net earnings from self employment by Section
1402 of the Internal Revenue Code and regulations
adopted pursuant thereto;
(G) The valuation limitation amount;
(H) An amount equal to the amount of any tax
imposed by this Act which was refunded to the taxpayer
and included in such total for the taxable year;
(I) An amount equal to all amounts included in
such total pursuant to the provisions of Section 111
of the Internal Revenue Code as a recovery of items
previously deducted from adjusted gross income in the
computation of taxable income;
(J) An amount equal to those dividends included in
such total which were paid by a corporation which
conducts business operations in a River Edge
Redevelopment Zone or zones created under the River
Edge Redevelopment Zone Act, and conducts
substantially all of its operations in a River Edge
Redevelopment Zone or zones. This subparagraph (J) is

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

the Internal Revenue Code and, for taxable years
ending on or after December 31, 2008, any amount
included in gross income under Section 87 of the
Internal Revenue Code; the provisions of this
subparagraph are exempt from the provisions of Section
250;
(N) An amount equal to all amounts included in
such total which are exempt from taxation by this
State either by reason of its statutes or Constitution
or by reason of the Constitution, treaties or statutes
of the United States; provided that, in the case of any
statute of this State that exempts income derived from
bonds or other obligations from the tax imposed under
this Act, the amount exempted shall be the interest
net of bond premium amortization;
(O) An amount equal to any contribution made to a
job training project established pursuant to the Tax
Increment Allocation Redevelopment Act;
(P) An amount equal to the amount of the deduction
used to compute the federal income tax credit for
restoration of substantial amounts held under claim of
right for the taxable year pursuant to Section 1341 of
the Internal Revenue Code or of any itemized deduction
taken from adjusted gross income in the computation of
taxable income for restoration of substantial amounts
held under claim of right for the taxable year;

(Q) An amount equal to any amounts included in
such total, received by the taxpayer as an
acceleration in the payment of life, endowment or
annuity benefits in advance of the time they would
otherwise be payable as an indemnity for a terminal
illness;
(R) An amount equal to the amount of any federal or
State bonus paid to veterans of the Persian Gulf War;
(S) An amount, to the extent included in adjusted
gross income, equal to the amount of a contribution
made in the taxable year on behalf of the taxpayer to a
medical care savings account established under the
Medical Care Savings Account Act or the Medical Care
Savings Account Act of 2000 to the extent the
contribution is accepted by the account administrator
as provided in that Act;
(T) An amount, to the extent included in adjusted
gross income, equal to the amount of interest earned
in the taxable year on a medical care savings account
established under the Medical Care Savings Account Act
or the Medical Care Savings Account Act of 2000 on
behalf of the taxpayer, other than interest added
pursuant to item (D-5) of this paragraph (2);
(U) For one taxable year beginning on or after
January 1, 1994, an amount equal to the total amount of
tax imposed and paid under subsections (a) and (b) of

Section 201 of this Act on grant amounts received by
the taxpayer under the Nursing Home Grant Assistance
Act during the taxpayer's taxable years 1992 and 1993;
(V) Beginning with tax years ending on or after
December 31, 1995 and ending with tax years ending on
or before December 31, 2004, an amount equal to the
amount paid by a taxpayer who is a self-employed
taxpayer, a partner of a partnership, or a shareholder
in a Subchapter S corporation for health insurance or
long-term care insurance for that taxpayer or that
taxpayer's spouse or dependents, to the extent that
the amount paid for that health insurance or long-term
care insurance may be deducted under Section 213 of
the Internal Revenue Code, has not been deducted on
the federal income tax return of the taxpayer, and
does not exceed the taxable income attributable to
that taxpayer's income, self-employment income, or
Subchapter S corporation income; except that no
deduction shall be allowed under this item (V) if the
taxpayer is eligible to participate in any health
insurance or long-term care insurance plan of an
employer of the taxpayer or the taxpayer's spouse. The
amount of the health insurance and long-term care
insurance subtracted under this item (V) shall be
determined by multiplying total health insurance and
long-term care insurance premiums paid by the taxpayer

times a number that represents the fractional
percentage of eligible medical expenses under Section
213 of the Internal Revenue Code of 1986 not actually
deducted on the taxpayer's federal income tax return;
(W) For taxable years beginning on or after
January 1, 1998, all amounts included in the
taxpayer's federal gross income in the taxable year
from amounts converted from a regular IRA to a Roth
IRA. This paragraph is exempt from the provisions of
Section 250;
(X) For taxable year 1999 and thereafter, an
amount equal to the amount of any (i) distributions,
to the extent includible in gross income for federal
income tax purposes, made to the taxpayer because of
his or her status as a victim of persecution for racial
or religious reasons by Nazi Germany or any other Axis
regime or as an heir of the victim and (ii) items of
income, to the extent includible in gross income for
federal income tax purposes, attributable to, derived
from or in any way related to assets stolen from,
hidden from, or otherwise lost to a victim of
persecution for racial or religious reasons by Nazi
Germany or any other Axis regime immediately prior to,
during, and immediately after World War II, including,
but not limited to, interest on the proceeds
receivable as insurance under policies issued to a

victim of persecution for racial or religious reasons
by Nazi Germany or any other Axis regime by European
insurance companies immediately prior to and during
World War II; provided, however, this subtraction from
federal adjusted gross income does not apply to assets
acquired with such assets or with the proceeds from
the sale of such assets; provided, further, this
paragraph shall only apply to a taxpayer who was the
first recipient of such assets after their recovery
and who is a victim of persecution for racial or
religious reasons by Nazi Germany or any other Axis
regime or as an heir of the victim. The amount of and
the eligibility for any public assistance, benefit, or
similar entitlement is not affected by the inclusion
of items (i) and (ii) of this paragraph in gross income
for federal income tax purposes. This paragraph is
exempt from the provisions of Section 250;
(Y) For taxable years beginning on or after
January 1, 2002 and ending on or before December 31,
2004, moneys contributed in the taxable year to a
College Savings Pool account under Section 16.5 of the
State Treasurer Act, except that amounts excluded from
gross income under Section 529(c)(3)(C)(i) of the
Internal Revenue Code shall not be considered moneys
contributed under this subparagraph (Y). For taxable
years beginning on or after January 1, 2005, a maximum

of $10,000 contributed in the taxable year to (i) a
College Savings Pool account under Section 16.5 of the
State Treasurer Act or (ii) the Illinois Prepaid
Tuition Trust Fund, except that amounts excluded from
gross income under Section 529(c)(3)(C)(i) of the
Internal Revenue Code shall not be considered moneys
contributed under this subparagraph (Y). For purposes
of this subparagraph, contributions made by an
employer on behalf of an employee, or matching
contributions made by an employee, shall be treated as
made by the employee. This subparagraph (Y) is exempt
from the provisions of Section 250;
(Z) For taxable years 2001 and thereafter, for the
taxable year in which the bonus depreciation deduction
is taken on the taxpayer's federal income tax return
under subsection (k) of Section 168 of the Internal
Revenue Code and for each applicable taxable year
thereafter, an amount equal to "x", where:
(1) "y" equals the amount of the depreciation
deduction taken for the taxable year on the
taxpayer's federal income tax return on property
for which the bonus depreciation deduction was
taken in any year under subsection (k) of Section
168 of the Internal Revenue Code, but not
including the bonus depreciation deduction;
(2) for taxable years ending on or before

December 31, 2005, "x" equals "y" multiplied by 30
and then divided by 70 (or "y" multiplied by
0.429); and
(3) for taxable years ending after December
31, 2005:
(i) for property on which a bonus
depreciation deduction of 30% of the adjusted
basis was taken, "x" equals "y" multiplied by
30 and then divided by 70 (or "y" multiplied
by 0.429);
(ii) for property on which a bonus
depreciation deduction of 50% of the adjusted
basis was taken, "x" equals "y" multiplied by
1.0;
(iii) for property on which a bonus
depreciation deduction of 100% of the adjusted
basis was taken in a taxable year ending on or
after December 31, 2021, "x" equals the
depreciation deduction that would be allowed
on that property if the taxpayer had made the
election under Section 168(k)(7) of the
Internal Revenue Code to not claim bonus
depreciation on that property; and
(iv) for property on which a bonus
depreciation deduction of a percentage other
than 30%, 50% or 100% of the adjusted basis

was taken in a taxable year ending on or after
December 31, 2021, "x" equals "y" multiplied
by 100 times the percentage bonus depreciation
on the property (that is, 100(bonus%)) and
then divided by 100 times 1 minus the
percentage bonus depreciation on the property
(that is, 100(1-bonus%)).
The aggregate amount deducted under this
subparagraph in all taxable years for any one piece of
property may not exceed the amount of the bonus
depreciation deduction taken on that property on the
taxpayer's federal income tax return under subsection
(k) of Section 168 of the Internal Revenue Code. This
subparagraph (Z) is exempt from the provisions of
Section 250;
(AA) If the taxpayer sells, transfers, abandons,
or otherwise disposes of property for which the
taxpayer was required in any taxable year to make an
addition modification under subparagraph (D-15), then
an amount equal to that addition modification.
If the taxpayer continues to own property through
the last day of the last tax year for which a
subtraction is allowed with respect to that property
under subparagraph (Z) and for which the taxpayer was
required in any taxable year to make an addition
modification under subparagraph (D-15), then an amount

equal to that addition modification.
The taxpayer is allowed to take the deduction
under this subparagraph only once with respect to any
one piece of property.
This subparagraph (AA) is exempt from the
provisions of Section 250;
(BB) Any amount included in adjusted gross income,
other than salary, received by a driver in a
ridesharing arrangement using a motor vehicle;
(CC) The amount of (i) any interest income (net of
the deductions allocable thereto) taken into account
for the taxable year with respect to a transaction
with a taxpayer that is required to make an addition
modification with respect to such transaction under
Section 203(a)(2)(D-17), 203(b)(2)(E-12),
203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
the amount of that addition modification, and (ii) any
income from intangible property (net of the deductions
allocable thereto) taken into account for the taxable
year with respect to a transaction with a taxpayer
that is required to make an addition modification with
respect to such transaction under Section
203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
203(d)(2)(D-8), but not to exceed the amount of that
addition modification. This subparagraph (CC) is
exempt from the provisions of Section 250;

(DD) An amount equal to the interest income taken
into account for the taxable year (net of the
deductions allocable thereto) with respect to
transactions with (i) a foreign person who would be a
member of the taxpayer's unitary business group but
for the fact that the foreign person's business
activity outside the United States is 80% or more of
that person's total business activity and (ii) for
taxable years ending on or after December 31, 2008, to
a person who would be a member of the same unitary
business group but for the fact that the person is
prohibited under Section 1501(a)(27) from being
included in the unitary business group because he or
she is ordinarily required to apportion business
income under different subsections of Section 304, but
not to exceed the addition modification required to be
made for the same taxable year under Section
203(a)(2)(D-17) for interest paid, accrued, or
incurred, directly or indirectly, to the same person.
This subparagraph (DD) is exempt from the provisions
of Section 250;
(EE) An amount equal to the income from intangible
property taken into account for the taxable year (net
of the deductions allocable thereto) with respect to
transactions with (i) a foreign person who would be a
member of the taxpayer's unitary business group but

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

that part of a reimbursement received from the
insurance company equal to the amount of the expense
or loss (including expenses incurred by the insurance
company) that would have been taken into account as a
deduction for federal income tax purposes if the
expense or loss had been uninsured. If a taxpayer
makes the election provided for by this subparagraph
(GG), the insurer to which the premiums were paid must
add back to income the amount subtracted by the
taxpayer pursuant to this subparagraph (GG). This
subparagraph (GG) is exempt from the provisions of
Section 250;
(HH) For taxable years beginning on or after
January 1, 2018 and prior to January 1, 2028, a maximum
of $10,000 contributed in the taxable year to a
qualified ABLE account under Section 16.6 of the State
Treasurer Act, except that amounts excluded from gross
income under Section 529(c)(3)(C)(i) or Section
529A(c)(1)(C) of the Internal Revenue Code shall not
be considered moneys contributed under this
subparagraph (HH). For purposes of this subparagraph
(HH), contributions made by an employer on behalf of
an employee, or matching contributions made by an
employee, shall be treated as made by the employee;
(II) For taxable years that begin on or after
January 1, 2021 and begin before January 1, 2026, the

amount that is included in the taxpayer's federal
adjusted gross income pursuant to Section 61 of the
Internal Revenue Code as discharge of indebtedness
attributable to student loan forgiveness and that is
not excluded from the taxpayer's federal adjusted
gross income pursuant to paragraph (5) of subsection
(f) of Section 108 of the Internal Revenue Code; and
(JJ) For taxable years beginning on or after
January 1, 2023, for any cannabis establishment
operating in this State and licensed under the
Cannabis Regulation and Tax Act or any cannabis
cultivation center or medical cannabis dispensing
organization operating in this State and licensed
under the Compassionate Use of Medical Cannabis
Program Act, an amount equal to the deductions that
were disallowed under Section 280E of the Internal
Revenue Code for the taxable year and that would not be
added back under this subsection. The provisions of
this subparagraph (JJ) are exempt from the provisions
of Section 250; .
(KK) (JJ) To the extent includible in gross income
for federal income tax purposes, any amount awarded or
paid to the taxpayer as a result of a judgment or
settlement for fertility fraud as provided in Section
15 of the Illinois Fertility Fraud Act, donor
fertility fraud as provided in Section 20 of the

Illinois Fertility Fraud Act, or similar action in
another state; and .
(LL) For taxable years beginning on or after
January 1, 2026, if the taxpayer is a qualified
worker, as defined in the Workforce Development
through Charitable Loan Repayment Act, an amount equal
to the amount included in the taxpayer's federal
adjusted gross income that is attributable to student
loan repayment assistance received by the taxpayer
during the taxable year from a qualified community
foundation under the provisions of the Workforce
Development Through Charitable Loan Repayment Act.
This subparagraph (LL) is exempt from the
provisions of Section 250.
(b) Corporations.
(1) In general. In the case of a corporation, base
income means an amount equal to the taxpayer's taxable
income for the taxable year as modified by paragraph (2).
(2) Modifications. The taxable income referred to in
paragraph (1) shall be modified by adding thereto the sum
of the following amounts:
(A) An amount equal to all amounts paid or accrued
to the taxpayer as interest and all distributions
received from regulated investment companies during
the taxable year to the extent excluded from gross

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

subtraction modifications in such earlier taxable
year, with the following limitations applied in the
order that they are listed:
(i) the addition modification relating to the
net operating loss carried back or forward to the
taxable year from any taxable year ending prior to
December 31, 1986 shall be reduced by the amount
of addition modification under this subparagraph
(E) which related to that net operating loss and
which was taken into account in calculating the
base income of an earlier taxable year, and
(ii) the addition modification relating to the
net operating loss carried back or forward to the
taxable year from any taxable year ending prior to
December 31, 1986 shall not exceed the amount of
such carryback or carryforward;
For taxable years in which there is a net
operating loss carryback or carryforward from more
than one other taxable year ending prior to December
31, 1986, the addition modification provided in this
subparagraph (E) shall be the sum of the amounts
computed independently under the preceding provisions
of this subparagraph (E) for each such taxable year;
(E-5) For taxable years ending after December 31,
1997, an amount equal to any eligible remediation
costs that the corporation deducted in computing

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

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

(i) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person who
is subject in a foreign country or state, other
than a state which requires mandatory unitary
reporting, to a tax on or measured by net income
with respect to such interest; or
(ii) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer can establish, based on a
preponderance of the evidence, both of the
following:
(a) the person, during the same taxable
year, paid, accrued, or incurred, the interest
to a person that is not a related member, and
(b) the transaction giving rise to the
interest expense between the taxpayer and the
person did not have as a principal purpose the
avoidance of Illinois income tax, and is paid
pursuant to a contract or agreement that
reflects an arm's-length interest rate and
terms; or
(iii) the taxpayer can establish, based on
clear and convincing evidence, that the interest
paid, accrued, or incurred relates to a contract
or agreement entered into at arm's-length rates
and terms and the principal purpose for the

payment is not federal or Illinois tax avoidance;
or
(iv) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer establishes by clear and convincing
evidence that the adjustments are unreasonable; or
if the taxpayer and the Director agree in writing
to the application or use of an alternative method
of apportionment under Section 304(f).
Nothing in this subsection shall preclude the
Director from making any other adjustment
otherwise allowed under Section 404 of this Act
for any tax year beginning after the effective
date of this amendment provided such adjustment is
made pursuant to regulation adopted by the
Department and such regulations provide methods
and standards by which the Department will utilize
its authority under Section 404 of this Act;
(E-13) An amount equal to the amount of intangible
expenses and costs otherwise allowed as a deduction in
computing base income, and that were paid, accrued, or
incurred, directly or indirectly, (i) for taxable
years ending on or after December 31, 2004, to a
foreign person who would be a member of the same
unitary business group but for the fact that the
foreign person's business activity outside the United

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

indirect acquisition, use, maintenance or management,
ownership, sale, exchange, or any other disposition of
intangible property; (2) losses incurred, directly or
indirectly, from factoring transactions or discounting
transactions; (3) royalty, patent, technical, and
copyright fees; (4) licensing fees; and (5) other
similar expenses and costs. For purposes of this
subparagraph, "intangible property" includes patents,
patent applications, trade names, trademarks, service
marks, copyrights, mask works, trade secrets, and
similar types of intangible assets.
This paragraph shall not apply to the following:
(i) any item of intangible expenses or costs
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person who
is subject in a foreign country or state, other
than a state which requires mandatory unitary
reporting, to a tax on or measured by net income
with respect to such item; or
(ii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, if the taxpayer can establish, based
on a preponderance of the evidence, both of the
following:
(a) the person during the same taxable
year paid, accrued, or incurred, the

intangible expense or cost to a person that is
not a related member, and
(b) the transaction giving rise to the
intangible expense or cost between the
taxpayer and the person did not have as a
principal purpose the avoidance of Illinois
income tax, and is paid pursuant to a contract
or agreement that reflects arm's-length terms;
or
(iii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person if
the taxpayer establishes by clear and convincing
evidence, that the adjustments are unreasonable;
or if the taxpayer and the Director agree in
writing to the application or use of an
alternative method of apportionment under Section
304(f);
Nothing in this subsection shall preclude the
Director from making any other adjustment
otherwise allowed under Section 404 of this Act
for any tax year beginning after the effective
date of this amendment provided such adjustment is
made pursuant to regulation adopted by the
Department and such regulations provide methods
and standards by which the Department will utilize

its authority under Section 404 of this Act;
(E-14) For taxable years ending on or after
December 31, 2008, an amount equal to the amount of
insurance premium expenses and costs otherwise allowed
as a deduction in computing base income, and that were
paid, accrued, or incurred, directly or indirectly, to
a person who would be a member of the same unitary
business group but for the fact that the person is
prohibited under Section 1501(a)(27) from being
included in the unitary business group because he or
she is ordinarily required to apportion business
income under different subsections of Section 304. The
addition modification required by this subparagraph
shall be reduced to the extent that dividends were
included in base income of the unitary group for the
same taxable year and received by the taxpayer or by a
member of the taxpayer's unitary business group
(including amounts included in gross income under
Sections 951 through 964 of the Internal Revenue Code
and amounts included in gross income under Section 78
of the Internal Revenue Code) with respect to the
stock of the same person to whom the premiums and costs
were directly or indirectly paid, incurred, or
accrued. The preceding sentence does not apply to the
extent that the same dividends caused a reduction to
the addition modification required under Section

203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this
Act;
(E-15) For taxable years beginning after December
31, 2008, any deduction for dividends paid by a
captive real estate investment trust that is allowed
to a real estate investment trust under Section
857(b)(2)(B) of the Internal Revenue Code for
dividends paid;
(E-16) An amount equal to the credit allowable to
the taxpayer under Section 218(a) of this Act,
determined without regard to Section 218(c) of this
Act;
(E-17) For taxable years ending on or after
December 31, 2017, an amount equal to the deduction
allowed under Section 199 of the Internal Revenue Code
for the taxable year;
(E-18) for taxable years beginning after December
31, 2018, an amount equal to the deduction allowed
under Section 250(a)(1)(A) of the Internal Revenue
Code for the taxable year;
(E-19) for taxable years ending on or after June
30, 2021, an amount equal to the deduction allowed
under Section 250(a)(1)(B)(i) of the Internal Revenue
Code for the taxable year;
(E-20) for taxable years ending on or after June
30, 2021, an amount equal to the deduction allowed

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

amounts disallowed as deductions by Section 45G(e)(3)
of the Internal Revenue Code and, for taxable years
ending on or after December 31, 2008, any amount
included in gross income under Section 87 of the
Internal Revenue Code and the policyholders' share of
tax-exempt interest of a life insurance company under
Section 807(a)(2)(B) of the Internal Revenue Code (in
the case of a life insurance company with gross income
from a decrease in reserves for the tax year) or
Section 807(b)(1)(B) of the Internal Revenue Code (in
the case of a life insurance company allowed a
deduction for an increase in reserves for the tax
year); the provisions of this subparagraph are exempt
from the provisions of Section 250;
(J) An amount equal to all amounts included in
such total which are exempt from taxation by this
State either by reason of its statutes or Constitution
or by reason of the Constitution, treaties or statutes
of the United States; provided that, in the case of any
statute of this State that exempts income derived from
bonds or other obligations from the tax imposed under
this Act, the amount exempted shall be the interest
net of bond premium amortization;
(K) An amount equal to those dividends included in
such total which were paid by a corporation which
conducts business operations in a River Edge

Redevelopment Zone or zones created under the River
Edge Redevelopment Zone Act and conducts substantially
all of its operations in a River Edge Redevelopment
Zone or zones. This subparagraph (K) is exempt from
the provisions of Section 250;
(L) An amount equal to those dividends included in
such total that were paid by a corporation that
conducts business operations in a federally designated
Foreign Trade Zone or Sub-Zone and that is designated
a High Impact Business located in Illinois; provided
that dividends eligible for the deduction provided in
subparagraph (K) of paragraph 2 of this subsection
shall not be eligible for the deduction provided under
this subparagraph (L);
(M) For any taxpayer that is a financial
organization within the meaning of Section 304(c) of
this Act, an amount included in such total as interest
income from a loan or loans made by such taxpayer to a
borrower, to the extent that such a loan is secured by
property which is eligible for the River Edge
Redevelopment Zone Investment Credit. To determine the
portion of a loan or loans that is secured by property
eligible for a Section 201(f) investment credit to the
borrower, the entire principal amount of the loan or
loans between the taxpayer and the borrower should be
divided into the basis of the Section 201(f)

investment credit property which secures the loan or
loans, using for this purpose the original basis of
such property on the date that it was placed in service
in the River Edge Redevelopment Zone. The subtraction
modification available to the taxpayer in any year
under this subsection shall be that portion of the
total interest paid by the borrower with respect to
such loan attributable to the eligible property as
calculated under the previous sentence. This
subparagraph (M) is exempt from the provisions of
Section 250;
(M-1) For any taxpayer that is a financial
organization within the meaning of Section 304(c) of
this Act, an amount included in such total as interest
income from a loan or loans made by such taxpayer to a
borrower, to the extent that such a loan is secured by
property which is eligible for the High Impact
Business Investment Credit. To determine the portion
of a loan or loans that is secured by property eligible
for a Section 201(h) investment credit to the
borrower, the entire principal amount of the loan or
loans between the taxpayer and the borrower should be
divided into the basis of the Section 201(h)
investment credit property which secures the loan or
loans, using for this purpose the original basis of
such property on the date that it was placed in service

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

for taxable years ending after December 31, 1992, of
the amount by which dividends included in taxable
income and received from a corporation that is not
created or organized under the laws of the United
States or any state or political subdivision thereof,
including, for taxable years ending on or after
December 31, 1988, dividends received or deemed
received or paid or deemed paid under Sections 951
through 965 of the Internal Revenue Code, exceed the
amount of the modification provided under subparagraph
(G) of paragraph (2) of this subsection (b) which is
related to such dividends, and including, for taxable
years ending on or after December 31, 2008, dividends
received from a captive real estate investment trust;
plus (ii) 100% of the amount by which dividends,
included in taxable income and received, including,
for taxable years ending on or after December 31,
1988, dividends received or deemed received or paid or
deemed paid under Sections 951 through 964 of the
Internal Revenue Code and including, for taxable years
ending on or after December 31, 2008, dividends
received from a captive real estate investment trust,
from any such corporation specified in clause (i) that
would but for the provisions of Section 1504(b)(3) of
the Internal Revenue Code be treated as a member of the
affiliated group which includes the dividend

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

reciprocal insurer in the taxable year to the
attorney-in-fact over the deduction allowed to that
interinsurer or reciprocal insurer with respect to the
attorney-in-fact under Section 835(b) of the Internal
Revenue Code for the taxable year; the provisions of
this subparagraph are exempt from the provisions of
Section 250;
(S) For taxable years ending on or after December
31, 1997, in the case of a Subchapter S corporation, an
amount equal to all amounts of income allocable to a
shareholder subject to the Personal Property Tax
Replacement Income Tax imposed by subsections (c) and
(d) of Section 201 of this Act, including amounts
allocable to organizations exempt from federal income
tax by reason of Section 501(a) of the Internal
Revenue Code. This subparagraph (S) is exempt from the
provisions of Section 250;
(T) For taxable years 2001 and thereafter, for the
taxable year in which the bonus depreciation deduction
is taken on the taxpayer's federal income tax return
under subsection (k) of Section 168 of the Internal
Revenue Code and for each applicable taxable year
thereafter, an amount equal to "x", where:
(1) "y" equals the amount of the depreciation
deduction taken for the taxable year on the
taxpayer's federal income tax return on property

for which the bonus depreciation deduction was
taken in any year under subsection (k) of Section
168 of the Internal Revenue Code, but not
including the bonus depreciation deduction;
(2) for taxable years ending on or before
December 31, 2005, "x" equals "y" multiplied by 30
and then divided by 70 (or "y" multiplied by
0.429); and
(3) for taxable years ending after December
31, 2005:
(i) for property on which a bonus
depreciation deduction of 30% of the adjusted
basis was taken, "x" equals "y" multiplied by
30 and then divided by 70 (or "y" multiplied
by 0.429);
(ii) for property on which a bonus
depreciation deduction of 50% of the adjusted
basis was taken, "x" equals "y" multiplied by
1.0;
(iii) for property on which a bonus
depreciation deduction of 100% of the adjusted
basis was taken in a taxable year ending on or
after December 31, 2021, "x" equals the
depreciation deduction that would be allowed
on that property if the taxpayer had made the
election under Section 168(k)(7) of the

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

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

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

made for the same taxable year under Section
203(b)(2)(E-12) for interest paid, accrued, or
incurred, directly or indirectly, to the same person.
This subparagraph (W) is exempt from the provisions of
Section 250;
(X) An amount equal to the income from intangible
property taken into account for the taxable year (net
of the deductions allocable thereto) with respect to
transactions with (i) a foreign person who would be a
member of the taxpayer's unitary business group but
for the fact that the foreign person's business
activity outside the United States is 80% or more of
that person's total business activity and (ii) for
taxable years ending on or after December 31, 2008, to
a person who would be a member of the same unitary
business group but for the fact that the person is
prohibited under Section 1501(a)(27) from being
included in the unitary business group because he or
she is ordinarily required to apportion business
income under different subsections of Section 304, but
not to exceed the addition modification required to be
made for the same taxable year under Section
203(b)(2)(E-13) for intangible expenses and costs
paid, accrued, or incurred, directly or indirectly, to
the same foreign person. This subparagraph (X) is
exempt from the provisions of Section 250;

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

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

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

than those provided by this subparagraph (E) exceeded
subtraction modifications in such taxable year, with
the following limitations applied in the order that
they are listed:
(i) the addition modification relating to the
net operating loss carried back or forward to the
taxable year from any taxable year ending prior to
December 31, 1986 shall be reduced by the amount
of addition modification under this subparagraph
(E) which related to that net operating loss and
which was taken into account in calculating the
base income of an earlier taxable year, and
(ii) the addition modification relating to the
net operating loss carried back or forward to the
taxable year from any taxable year ending prior to
December 31, 1986 shall not exceed the amount of
such carryback or carryforward;
For taxable years in which there is a net
operating loss carryback or carryforward from more
than one other taxable year ending prior to December
31, 1986, the addition modification provided in this
subparagraph (E) shall be the sum of the amounts
computed independently under the preceding provisions
of this subparagraph (E) for each such taxable year;
(F) For taxable years ending on or after January
1, 1989, an amount equal to the tax deducted pursuant

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

If the taxpayer continues to own property through
the last day of the last tax year for which a
subtraction is allowed with respect to that property
under subparagraph (R) and for which the taxpayer was
allowed in any taxable year to make a subtraction
modification under subparagraph (R), then an amount
equal to that subtraction modification.
The taxpayer is required to make the addition
modification under this subparagraph only once with
respect to any one piece of property;
(G-12) An amount equal to the amount otherwise
allowed as a deduction in computing base income for
interest paid, accrued, or incurred, directly or
indirectly, (i) for taxable years ending on or after
December 31, 2004, to a foreign person who would be a
member of the same unitary business group but for the
fact that the foreign person's business activity
outside the United States is 80% or more of the foreign
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business
group but for the fact that the person is prohibited
under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily
required to apportion business income under different
subsections of Section 304. The addition modification

required by this subparagraph shall be reduced to the
extent that dividends were included in base income of
the unitary group for the same taxable year and
received by the taxpayer or by a member of the
taxpayer's unitary business group (including amounts
included in gross income pursuant to Sections 951
through 964 of the Internal Revenue Code and amounts
included in gross income under Section 78 of the
Internal Revenue Code) with respect to the stock of
the same person to whom the interest was paid,
accrued, or incurred.
This paragraph shall not apply to the following:
(i) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person who
is subject in a foreign country or state, other
than a state which requires mandatory unitary
reporting, to a tax on or measured by net income
with respect to such interest; or
(ii) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer can establish, based on a
preponderance of the evidence, both of the
following:
(a) the person, during the same taxable
year, paid, accrued, or incurred, the interest
to a person that is not a related member, and

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

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

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

indirectly, from a transaction with a person who
is subject in a foreign country or state, other
than a state which requires mandatory unitary
reporting, to a tax on or measured by net income
with respect to such item; or
(ii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, if the taxpayer can establish, based
on a preponderance of the evidence, both of the
following:
(a) the person during the same taxable
year paid, accrued, or incurred, the
intangible expense or cost to a person that is
not a related member, and
(b) the transaction giving rise to the
intangible expense or cost between the
taxpayer and the person did not have as a
principal purpose the avoidance of Illinois
income tax, and is paid pursuant to a contract
or agreement that reflects arm's-length terms;
or
(iii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person if
the taxpayer establishes by clear and convincing
evidence, that the adjustments are unreasonable;

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

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

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

all amounts disallowed as deductions by (i) Sections
171(a)(2) and 265(a)(2) of the Internal Revenue Code,
and all amounts of expenses allocable to interest and
disallowed as deductions by Section 265(a)(1) of the
Internal Revenue Code; and (ii) for taxable years
ending on or after August 13, 1999, Sections
171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
Internal Revenue Code, plus, (iii) for taxable years
ending on or after December 31, 2011, Section
45G(e)(3) of the Internal Revenue Code and, for
taxable years ending on or after December 31, 2008,
any amount included in gross income under Section 87
of the Internal Revenue Code; the provisions of this
subparagraph are exempt from the provisions of Section
250;
(M) An amount equal to those dividends included in
such total which were paid by a corporation which
conducts business operations in a River Edge
Redevelopment Zone or zones created under the River
Edge Redevelopment Zone Act and conducts substantially
all of its operations in a River Edge Redevelopment
Zone or zones. This subparagraph (M) is exempt from
the provisions of Section 250;
(N) An amount equal to any contribution made to a
job training project established pursuant to the Tax
Increment Allocation Redevelopment Act;

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

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

thereafter, an amount equal to "x", where:
(1) "y" equals the amount of the depreciation
deduction taken for the taxable year on the
taxpayer's federal income tax return on property
for which the bonus depreciation deduction was
taken in any year under subsection (k) of Section
168 of the Internal Revenue Code, but not
including the bonus depreciation deduction;
(2) for taxable years ending on or before
December 31, 2005, "x" equals "y" multiplied by 30
and then divided by 70 (or "y" multiplied by
0.429); and
(3) for taxable years ending after December
31, 2005:
(i) for property on which a bonus
depreciation deduction of 30% of the adjusted
basis was taken, "x" equals "y" multiplied by
30 and then divided by 70 (or "y" multiplied
by 0.429);
(ii) for property on which a bonus
depreciation deduction of 50% of the adjusted
basis was taken, "x" equals "y" multiplied by
1.0;
(iii) for property on which a bonus
depreciation deduction of 100% of the adjusted
basis was taken in a taxable year ending on or

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

was required in any taxable year to make an addition
modification under subparagraph (G-10), then an amount
equal to that addition modification.
If the taxpayer continues to own property through
the last day of the last tax year for which a
subtraction is allowed with respect to that property
under subparagraph (R) and for which the taxpayer was
required in any taxable year to make an addition
modification under subparagraph (G-10), then an amount
equal to that addition modification.
The taxpayer is allowed to take the deduction
under this subparagraph only once with respect to any
one piece of property.
This subparagraph (S) is exempt from the
provisions of Section 250;
(T) The amount of (i) any interest income (net of
the deductions allocable thereto) taken into account
for the taxable year with respect to a transaction
with a taxpayer that is required to make an addition
modification with respect to such transaction under
Section 203(a)(2)(D-17), 203(b)(2)(E-12),
203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
the amount of such addition modification and (ii) any
income from intangible property (net of the deductions
allocable thereto) taken into account for the taxable
year with respect to a transaction with a taxpayer

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

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

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

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

income for the taxable year as modified by paragraph (2).
(2) Modifications. The taxable income referred to in
paragraph (1) shall be modified by adding thereto the sum
of the following amounts:
(A) An amount equal to all amounts paid or accrued
to the taxpayer as interest or dividends during the
taxable year to the extent excluded from gross income
in the computation of taxable income;
(B) An amount equal to the amount of tax imposed by
this Act to the extent deducted from gross income for
the taxable year;
(C) The amount of deductions allowed to the
partnership pursuant to Section 707 (c) of the
Internal Revenue Code in calculating its taxable
income;
(D) An amount equal to the amount of the capital
gain deduction allowable under the Internal Revenue
Code, to the extent deducted from gross income in the
computation of taxable income;
(D-5) For taxable years 2001 and thereafter, an
amount equal to the bonus depreciation deduction taken
on the taxpayer's federal income tax return for the
taxable year under subsection (k) of Section 168 of
the Internal Revenue Code;
(D-6) If the taxpayer sells, transfers, abandons,
or otherwise disposes of property for which the

taxpayer was required in any taxable year to make an
addition modification under subparagraph (D-5), then
an amount equal to the aggregate amount of the
deductions taken in all taxable years under
subparagraph (O) with respect to that property.
If the taxpayer continues to own property through
the last day of the last tax year for which a
subtraction is allowed with respect to that property
under subparagraph (O) and for which the taxpayer was
allowed in any taxable year to make a subtraction
modification under subparagraph (O), then an amount
equal to that subtraction modification.
The taxpayer is required to make the addition
modification under this subparagraph only once with
respect to any one piece of property;
(D-7) An amount equal to the amount otherwise
allowed as a deduction in computing base income for
interest paid, accrued, or incurred, directly or
indirectly, (i) for taxable years ending on or after
December 31, 2004, to a foreign person who would be a
member of the same unitary business group but for the
fact the foreign person's business activity outside
the United States is 80% or more of the foreign
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business

group but for the fact that the person is prohibited
under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily
required to apportion business income under different
subsections of Section 304. The addition modification
required by this subparagraph shall be reduced to the
extent that dividends were included in base income of
the unitary group for the same taxable year and
received by the taxpayer or by a member of the
taxpayer's unitary business group (including amounts
included in gross income pursuant to Sections 951
through 964 of the Internal Revenue Code and amounts
included in gross income under Section 78 of the
Internal Revenue Code) with respect to the stock of
the same person to whom the interest was paid,
accrued, or incurred.
This paragraph shall not apply to the following:
(i) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person who
is subject in a foreign country or state, other
than a state which requires mandatory unitary
reporting, to a tax on or measured by net income
with respect to such interest; or
(ii) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer can establish, based on a

preponderance of the evidence, both of the
following:
(a) the person, during the same taxable
year, paid, accrued, or incurred, the interest
to a person that is not a related member, and
(b) the transaction giving rise to the
interest expense between the taxpayer and the
person did not have as a principal purpose the
avoidance of Illinois income tax, and is paid
pursuant to a contract or agreement that
reflects an arm's-length interest rate and
terms; or
(iii) the taxpayer can establish, based on
clear and convincing evidence, that the interest
paid, accrued, or incurred relates to a contract
or agreement entered into at arm's-length rates
and terms and the principal purpose for the
payment is not federal or Illinois tax avoidance;
or
(iv) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer establishes by clear and convincing
evidence that the adjustments are unreasonable; or
if the taxpayer and the Director agree in writing
to the application or use of an alternative method
of apportionment under Section 304(f).

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

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

marks, copyrights, mask works, trade secrets, and
similar types of intangible assets;
This paragraph shall not apply to the following:
(i) any item of intangible expenses or costs
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person who
is subject in a foreign country or state, other
than a state which requires mandatory unitary
reporting, to a tax on or measured by net income
with respect to such item; or
(ii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, if the taxpayer can establish, based
on a preponderance of the evidence, both of the
following:
(a) the person during the same taxable
year paid, accrued, or incurred, the
intangible expense or cost to a person that is
not a related member, and
(b) the transaction giving rise to the
intangible expense or cost between the
taxpayer and the person did not have as a
principal purpose the avoidance of Illinois
income tax, and is paid pursuant to a contract
or agreement that reflects arm's-length terms;
or

(iii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person if
the taxpayer establishes by clear and convincing
evidence, that the adjustments are unreasonable;
or if the taxpayer and the Director agree in
writing to the application or use of an
alternative method of apportionment under Section
304(f);
Nothing in this subsection shall preclude the
Director from making any other adjustment
otherwise allowed under Section 404 of this Act
for any tax year beginning after the effective
date of this amendment provided such adjustment is
made pursuant to regulation adopted by the
Department and such regulations provide methods
and standards by which the Department will utilize
its authority under Section 404 of this Act;
(D-9) For taxable years ending on or after
December 31, 2008, an amount equal to the amount of
insurance premium expenses and costs otherwise allowed
as a deduction in computing base income, and that were
paid, accrued, or incurred, directly or indirectly, to
a person who would be a member of the same unitary
business group but for the fact that the person is
prohibited under Section 1501(a)(27) from being

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

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

Property Tax Replacement Income Tax imposed by
subsections (c) and (d) of Section 201 of this Act
including amounts distributable to organizations
exempt from federal income tax by reason of Section
501(a) of the Internal Revenue Code; this subparagraph
(I) is exempt from the provisions of Section 250;
(J) With the exception of any amounts subtracted
under subparagraph (G), an amount equal to the sum of
all amounts disallowed as deductions by (i) Sections
171(a)(2) and 265(a)(2) of the Internal Revenue Code,
and all amounts of expenses allocable to interest and
disallowed as deductions by Section 265(a)(1) of the
Internal Revenue Code; and (ii) for taxable years
ending on or after August 13, 1999, Sections
171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
Internal Revenue Code, plus, (iii) for taxable years
ending on or after December 31, 2011, Section
45G(e)(3) of the Internal Revenue Code and, for
taxable years ending on or after December 31, 2008,
any amount included in gross income under Section 87
of the Internal Revenue Code; the provisions of this
subparagraph are exempt from the provisions of Section
250;
(K) An amount equal to those dividends included in
such total which were paid by a corporation which
conducts business operations in a River Edge

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

Revenue Code and for each applicable taxable year
thereafter, an amount equal to "x", where:
(1) "y" equals the amount of the depreciation
deduction taken for the taxable year on the
taxpayer's federal income tax return on property
for which the bonus depreciation deduction was
taken in any year under subsection (k) of Section
168 of the Internal Revenue Code, but not
including the bonus depreciation deduction;
(2) for taxable years ending on or before
December 31, 2005, "x" equals "y" multiplied by 30
and then divided by 70 (or "y" multiplied by
0.429); and
(3) for taxable years ending after December
31, 2005:
(i) for property on which a bonus
depreciation deduction of 30% of the adjusted
basis was taken, "x" equals "y" multiplied by
30 and then divided by 70 (or "y" multiplied
by 0.429);
(ii) for property on which a bonus
depreciation deduction of 50% of the adjusted
basis was taken, "x" equals "y" multiplied by
1.0;
(iii) for property on which a bonus
depreciation deduction of 100% of the adjusted

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

otherwise disposes of property for which the taxpayer
was required in any taxable year to make an addition
modification under subparagraph (D-5), then an amount
equal to that addition modification.
If the taxpayer continues to own property through
the last day of the last tax year for which a
subtraction is allowed with respect to that property
under subparagraph (O) and for which the taxpayer was
required in any taxable year to make an addition
modification under subparagraph (D-5), then an amount
equal to that addition modification.
The taxpayer is allowed to take the deduction
under this subparagraph only once with respect to any
one piece of property.
This subparagraph (P) is exempt from the
provisions of Section 250;
(Q) The amount of (i) any interest income (net of
the deductions allocable thereto) taken into account
for the taxable year with respect to a transaction
with a taxpayer that is required to make an addition
modification with respect to such transaction under
Section 203(a)(2)(D-17), 203(b)(2)(E-12),
203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
the amount of such addition modification and (ii) any
income from intangible property (net of the deductions
allocable thereto) taken into account for the taxable

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

This subparagraph (R) is exempt from Section 250;
(S) An amount equal to the income from intangible
property taken into account for the taxable year (net
of the deductions allocable thereto) with respect to
transactions with (i) a foreign person who would be a
member of the taxpayer's unitary business group but
for the fact that the foreign person's business
activity outside the United States is 80% or more of
that person's total business activity and (ii) for
taxable years ending on or after December 31, 2008, to
a person who would be a member of the same unitary
business group but for the fact that the person is
prohibited under Section 1501(a)(27) from being
included in the unitary business group because he or
she is ordinarily required to apportion business
income under different subsections of Section 304, but
not to exceed the addition modification required to be
made for the same taxable year under Section
203(d)(2)(D-8) for intangible expenses and costs paid,
accrued, or incurred, directly or indirectly, to the
same person. This subparagraph (S) is exempt from
Section 250;
(T) For taxable years ending on or after December
31, 2011, in the case of a taxpayer who was required to
add back any insurance premiums under Section
203(d)(2)(D-9), such taxpayer may elect to subtract

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

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

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

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

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

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

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

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

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

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

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

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

application fee. The county clerk may audit the applications
to determine that the properties subject to the tax abatement
meet the requirements of this Section. The determination of
eligibility of a property for the housing opportunity area
abatement shall be made annually; however, no property may
receive an abatement for more than 10 tax years.
(d) The housing authority shall determine housing
opportunity areas within its service area and annually deliver
to the county clerk, in a manner determined by the county
clerk, a list of all properties containing qualified units
within that service area by December 31st of the tax year for
which the property is eligible for abatement; the list shall
include the number of qualified units and the total number of
dwelling units for each property.
The county clerk shall deliver annually to a housing
authority, upon that housing authority's request, the most
recent available equalized assessed value for the county as a
whole and for those taxing districts and townships so
specified by the requesting housing authority.
(e) The county clerk shall abate the tax attributed to a
portion of the property determined to be eligible for a
housing opportunity area abatement. The portion eligible for
abatement shall be determined by reducing the equalized
assessment value by a percentage calculated using the
following formula: 19% of the equalized assessed value of the
property multiplied by a fraction where the numerator is the

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

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

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

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

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

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

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

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

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

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

district. Each owner of taxable homestead property shall
receive a proportionate share of the total disbursement based
on the amount of ad valorem taxes on taxable homestead
property paid by the owner to the taxing district under the
most recent tax bill.
(b) The corporate authorities of a taxing district may
direct the treasurer to divide the moneys deposited into the
account into 2 separate pools to be designated the homestead
property pool and the commercial or industrial property pool.
The amount to be deposited into each pool shall be determined
by the corporate authorities of the taxing district, except
that at least 50% of the moneys in the account shall be
deposited into the homestead property pool. The treasurer
shall disburse the amounts held in each pool in the tax
reimbursement account at the direction of the corporate
authorities. Disbursements from the homestead property pool
shall be made to all of the owners of taxable homestead
property within the taxing district. Each owner of taxable
homestead property shall receive a proportionate share of the
total disbursement from the pool based on the amount of ad
valorem taxes on taxable homestead property paid by the owner
to the taxing district under the most recent tax bill.
Disbursements from the commercial or industrial property pool
shall be made to all of the owners of taxable commercial or
industrial property, except (i) those owners whose property is
located within a tax increment financing district, (ii) those

owners who received a tax incentive as a result of a tax
incentivized development established by an intergovernmental
agreement to which the taxing district is a party, or (iii)
those owners whose property is classified as an apartment
building. Each eligible owner of taxable commercial or
industrial property shall receive a proportionate share of the
total disbursement from the pool based on the amount of ad
valorem taxes on taxable commercial or industrial property
paid by the owner to the taxing district under the most recent
tax bill.
(c) In determining the proportionate share of each owner
of homestead property, the numerator shall be the amount of
taxes on homestead property paid by that owner to the taxing
district under the most recent tax bill, and the denominator
shall be the aggregate total of all taxes on homestead
property paid by all owners to the taxing district under the
most recent tax bills.
(d) In determining the proportionate share of each owner
of commercial or industrial property, the numerator shall be
the amount of taxes on commercial or industrial property paid
by that owner to the taxing district under the most recent tax
bill, and the denominator shall be the aggregate total of all
taxes on commercial or industrial property paid by all owners
to the taxing district under the most recent tax bills less
taxes paid on commercial or industrial property located in a
tax increment financing district, taxes paid on commercial or

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

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

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

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

authorized to seek referendum approval of each proposition
described and set forth in this Section.
The proposition seeking to obtain referendum approval to
levy a new tax rate as authorized in clause (i) shall be in
substantially the following form:
Shall ... (insert legal name, number, if any, and
county or counties of taxing district and geographic or
other common name by which a school or community college
district is known and referred to), Illinois, be
authorized to levy a new tax for ... purposes and have an
additional tax of ...% of the equalized assessed value of
the taxable property therein extended for such purposes?
The votes must be recorded as "Yes" or "No".
The proposition seeking to obtain referendum approval to
increase the limiting rate as authorized in clause (ii) shall
be in substantially the following form:
Shall the limiting rate under the Property Tax
Extension Limitation Law for ... (insert legal name,
number, if any, and county or counties of taxing district
and geographic or other common name by which a school or
community college district is known and referred to),
Illinois, be increased by an additional amount equal to
...% above the limiting rate for the purpose of...(insert
purpose) for levy year ... (insert the most recent levy
year for which the limiting rate of the taxing district is
known at the time the submission of the proposition is

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

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

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

validity of any proposition approved. Notice of the referendum
shall be published and posted as otherwise required by law,
and the submission of the proposition shall be initiated as
provided by law.
If a majority of all ballots cast on the proposition are in
favor of the proposition, the following provisions shall be
applicable to the extension of taxes for the taxing district:
(A) a new tax rate shall be first effective for the
levy year in which the new rate is approved;
(B) if the proposition provides for a new tax rate,
the taxing district is authorized to levy a tax after the
canvass of the results of the referendum by the election
authority for the purposes for which the tax is
authorized;
(C) a limiting rate increase shall be first effective
for the levy year in which the limiting rate increase is
approved, provided that the taxing district may elect to
have a limiting rate increase be effective for the levy
year prior to the levy year in which the limiting rate
increase is approved unless the extension of taxes for the
prior levy year occurs 30 days or less after the canvass of
the results of the referendum by the election authority in
any county in which the taxing district is located;
(D) in order for the limiting rate increase to be
first effective for the levy year prior to the levy year of
the referendum, the taxing district must certify its

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

(vv) Information that is exempt from disclosure under
subsections (f) and (j) of Section 5-36 of the Illinois
Public Aid Code.
(ww) Information that is exempt from disclosure under
Section 16.8 of the State Treasurer Act.
(xx) Information that is exempt from disclosure or
information that shall not be made public under the
Illinois Insurance Code.
(yy) Information prohibited from being disclosed under
the Illinois Educational Labor Relations Act.
(zz) Information prohibited from being disclosed under
the Illinois Public Labor Relations Act.
(aaa) Information prohibited from being disclosed
under Section 1-167 of the Illinois Pension Code.
(bbb) Information that is prohibited from disclosure
by the Illinois Police Training Act and the Illinois State
Police Act.
(ccc) Records exempt from disclosure under Section
2605-304 of the Illinois State Police Law of the Civil
Administrative Code of Illinois.
(ddd) Information prohibited from being disclosed
under Section 35 of the Address Confidentiality for
Victims of Domestic Violence, Sexual Assault, Human
Trafficking, or Stalking Act.
(eee) Information prohibited from being disclosed
under subsection (b) of Section 75 of the Domestic

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

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

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

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

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

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

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

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

(vv) Information that is exempt from disclosure under
subsections (f) and (j) of Section 5-36 of the Illinois
Public Aid Code.
(ww) Information that is exempt from disclosure under
Section 16.8 of the State Treasurer Act.
(xx) Information that is exempt from disclosure or
information that shall not be made public under the
Illinois Insurance Code.
(yy) Information prohibited from being disclosed under
the Illinois Educational Labor Relations Act.
(zz) Information prohibited from being disclosed under
the Illinois Public Labor Relations Act.
(aaa) Information prohibited from being disclosed
under Section 1-167 of the Illinois Pension Code.
(bbb) Information that is prohibited from disclosure
by the Illinois Police Training Act and the Illinois State
Police Act.
(ccc) Records exempt from disclosure under Section
2605-304 of the Illinois State Police Law of the Civil
Administrative Code of Illinois.
(ddd) Information prohibited from being disclosed
under Section 35 of the Address Confidentiality for
Victims of Domestic Violence, Sexual Assault, Human
Trafficking, or Stalking Act.
(eee) Information prohibited from being disclosed
under subsection (b) of Section 75 of the Domestic

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

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

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

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

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

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

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

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

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

full-time career basis, of a fire department, fire protection
district, or fire protection association that has a Fire
Department Identification Number issued by the Office of the
State Fire Marshal and who does not serve as a member on a
full-time career basis for another fire department, fire
protection district, fire protection association, or
governmental entity. For taxable years beginning on or after
January 1, 2024, "volunteer emergency worker" also means a
person who is a volunteer member of a county or municipal
emergency services and disaster agency pursuant to the
Illinois Emergency Management Agency Act.
(e) The Department shall adopt rules to implement and
administer this Section, including rules concerning
applications for the tax credit.
(Source: P.A. 103-9, eff. 6-7-23.)
ARTICLE 65.
Section 65-5. The Hotel Operators' Occupation Tax Act is
amended by changing Sections 2, 3, 4, 5, and 6 and by adding
Sections 3-2 and 3-3 as follows:
(35 ILCS 145/2) (from Ch. 120, par. 481b.32)
Sec. 2. Definitions. As used in this Act, unless the
context otherwise requires:
(1) "Hotel" means any building or buildings in which the

public may, for a consideration, obtain living quarters,
sleeping or housekeeping accommodations. The term includes,
but is not limited to, inns, motels, tourist homes or courts,
lodging houses, rooming houses and apartment houses, retreat
centers, conference centers, and hunting lodges. For the
purposes of re-renters of hotel rooms only, "hotel" does not
include a short-term rental.
(2) "Operator" means any person engaged in the business of
renting, leasing, or letting rooms in operating a hotel.
(3) "Occupancy" means the use or possession, or the right
to the use or possession, of any room or rooms in a hotel for
any purpose, or the right to the use or possession of the
furnishings or to the services and accommodations accompanying
the use and possession of the room or rooms.
(4) "Room" or "rooms" means any living quarters, sleeping
or housekeeping accommodations.
(5) "Permanent resident" means any person who occupied or
has the right to occupy any room or rooms, regardless of
whether or not it is the same room or rooms, in a hotel for at
least 30 consecutive days.
(6) "Rent" or "rental" means the consideration received
for occupancy, valued in money, whether received in money or
otherwise, including all receipts, cash, credits and property
or services of any kind or nature. "Rent" or "rental" includes
any fee, charge, or commission received from a guest by a
re-renter of hotel rooms specifically in connection with the

re-rental of hotel rooms, but does not include any fee,
charge, or commission received from a short-term rental by a
hosting platform.
(7) "Department" means the Department of Revenue.
(8) "Person" means any natural individual, firm,
partnership, association, joint stock company, joint
adventure, public or private corporation, limited liability
company, or a receiver, executor, trustee, guardian or other
representative appointed by order of any court.
(9) "Re-renter of hotel rooms" means a person who is not
employed by the hotel operator but who, either directly or
indirectly, through agreements or arrangements with third
parties, collects or processes the payment of rent for a hotel
room located in this State and (i) obtains the right or
authority to grant control of, access to, or occupancy of a
hotel room in this State to a guest of the hotel or (ii)
facilitates the booking of a hotel room located in this State.
A person who obtains those rights or authorities is not
considered a re-renter of a hotel room if the person operates
under a shared hotel brand with the operator.
(10) "Hosting platform" or "platform" means a person who
provides an online application, software, website, or system
through which a short-term rental located in this State is
advertised or held out to the public as available to rent for
occupancy. For purposes of this definition, "short-term
rental" means an owner-occupied, tenant-occupied, or

non-owner-occupied dwelling, including, but not limited to, an
apartment, house, cottage, or condominium, located in this
State, where: (i) at least one room in the dwelling is rented
to an occupant for a period of less than 30 consecutive days;
and (ii) all accommodations are reserved in advance; provided,
however, that a dwelling shall be considered a single room if
rented as such.
(11) "Shared hotel brand" means an identifying trademark
that a hotel operator is expressly licensed to operate under
in accordance with the terms of a hotel franchise or
management agreement
(Source: P.A. 100-213, eff. 8-18-17.)
(35 ILCS 145/3) (from Ch. 120, par. 481b.33)
Sec. 3. Rate; exemptions.
(a) A tax is imposed upon hotel operators persons engaged
in the business of renting, leasing or letting rooms in a hotel
at the rate of 5% of 94% of the gross rental receipts from
engaging in business as a hotel operator such renting, leasing
or letting, excluding, however, from gross rental receipts,
the proceeds of such renting, leasing or letting hotel rooms
to permanent residents of a that hotel and proceeds from the
tax imposed under subsection (c) of Section 13 of the
Metropolitan Pier and Exposition Authority Act.
(b) There shall be imposed an additional tax upon hotel
operators persons engaged in the business of renting, leasing

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

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

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

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

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

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

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

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

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

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

returns, remitting the tax and supplying data to the
Department on request.
If any payment provided for in this Section exceeds the
operator's liabilities under this Act, as shown on an original
return, the Department may authorize the operator to credit
such excess payment against liability subsequently to be
remitted to the Department under this Act, in accordance with
reasonable rules adopted by the Department. If the Department
subsequently determines that all or any part of the credit
taken was not actually due to the operator, the operator's
discount shall be reduced by an amount equal to the difference
between the discount as applied to the credit taken and that
actually due, and that operator shall be liable for penalties
and interest on such difference.
There shall be deposited into the Build Illinois Fund in
the State Treasury for each State fiscal year 40% of the amount
of total net revenue from the tax imposed by subsection (a) of
Section 3. Of the remaining 60%: (i) $5,000,000 shall be
deposited into the Illinois Sports Facilities Fund and
credited to the Subsidy Account each fiscal year by making
monthly deposits in the amount of 1/8 of $5,000,000 plus
cumulative deficiencies in such deposits for prior months, and
(ii) an amount equal to the then applicable Advance Amount
shall be deposited into the Illinois Sports Facilities Fund
and credited to the Advance Account each fiscal year by making
monthly deposits in the amount of 1/8 of the then applicable

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

Promotion Fund for the purposes described in subsection (n) of
Section 5 of the Metropolitan Pier and Exposition Authority
Act and the remaining 82% of such amount shall be deposited
into the Local Tourism Fund each month for purposes authorized
by Section 605-705 of the Department of Commerce and Economic
Opportunity Law. Beginning on August 1, 2011 and through June
30, 2023, an amount equal to 4.5% of the net revenue realized
from this Act during the preceding month shall be deposited as
follows: 55% of such amount shall be deposited into the
Chicago Travel Industry Promotion Fund for the purposes
described in subsection (n) of Section 5 of the Metropolitan
Pier and Exposition Authority Act and the remaining 45% of
such amount deposited into the International Tourism Fund for
the purposes authorized in Section 605-707 of the Department
of Commerce and Economic Opportunity Law. "Net revenue
realized" means the revenue collected by the State under this
Act less the amount paid out as refunds to taxpayers for
overpayment of liability under this Act.
Beginning on July 1, 2023, of the remaining 60% of the
amount of total net revenue realized from the tax imposed
under subsection (a) of Section 3, after all required deposits
into the Illinois Sports Facilities Fund:
(1) an amount equal to 8% of the net revenue realized
under this Act for the preceding month shall be deposited
as follows: 82% to the Local Tourism Fund and 18% to the
Chicago Travel Industry Promotion Fund; and

(2) an amount equal to 4.5% of the net revenue
realized under this Act for the preceding month shall be
deposited as follows: 55% to the Chicago Travel Industry
Promotion Fund and 45% to the International Tourism Fund.
After making all these deposits, any remaining net revenue
realized from the tax imposed under subsection (a) of Section
3 shall be deposited into the Tourism Promotion Fund in the
State Treasury. All moneys received by the Department from the
additional tax imposed under subsection (b) of Section 3 shall
be deposited into the Build Illinois Fund in the State
Treasury.
The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.
Such annual return to the Department shall include a statement
of gross receipts as shown by the operator's last State income
tax return. If the total receipts of the business as reported
in the State income tax return do not agree with the gross
receipts reported to the Department for the same period, the
operator shall attach to his annual information return a
schedule showing a reconciliation of the 2 amounts and the
reasons for the difference. The operator's annual information
return to the Department shall also disclose payroll
information of the operator's business during the year covered

by such return and any additional reasonable information which
the Department deems would be helpful in determining the
accuracy of the monthly, quarterly or annual tax returns by
such operator as hereinbefore provided for in this Section.
If the annual information return required by this Section
is not filed when and as required the taxpayer shall be liable
for a penalty in an amount determined in accordance with
Section 3-4 of the Uniform Penalty and Interest Act until such
return is filed as required, the penalty to be assessed and
collected in the same manner as any other penalty provided for
in this Act.
The chief executive officer, proprietor, owner or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person who
willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and punished
accordingly. The annual return form prescribed by the
Department shall include a warning that the person signing the
return may be liable for perjury.
The foregoing portion of this Section concerning the
filing of an annual information return shall not apply to an
operator who is not required to file an income tax return with
the United States Government.
(Source: P.A. 102-16, eff. 6-17-21; 103-8, eff. 6-7-23.)
Section 65-10. The Illinois Municipal Code is amended by

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

full power to administer and enforce this Section; to collect
all taxes and penalties due hereunder; to dispose of taxes and
penalties so collected in the manner provided in this Section;
and to determine all rights to credit memoranda arising on
account of the erroneous payment of tax or penalty hereunder.
In the administration of and compliance with this Section, the
Department and persons who are subject to this Section shall
have the same rights, remedies, privileges, immunities, powers
and duties, and be subject to the same conditions,
restrictions, limitations, penalties and definitions of terms,
and employ the same modes of procedure, as are prescribed in
the Hotel Operators' Occupation Tax Act and the Uniform
Penalty and Interest Act, as fully as if the provisions
contained in those Acts were set forth herein.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Illinois tourism tax fund.
Persons subject to any tax imposed under authority granted
by this Section may reimburse themselves for their tax
liability for that tax by separately stating the tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State tax imposed under the Hotel

Operators' Occupation Tax Act.
The Department shall forthwith pay over to the State
Treasurer, ex-officio, as trustee, all taxes and penalties
collected hereunder. On or before the 25th day of each
calendar month, the Department shall prepare and certify to
the Comptroller the disbursement of stated sums of money to
named municipalities from which lessors have paid taxes or
penalties hereunder to the Department during the second
preceding calendar month. The amount to be paid to each
municipality shall be the amount (not including credit
memoranda) collected hereunder during the second preceding
calendar month by the Department, and not including an amount
equal to the amount of refunds made during the second
preceding calendar month by the Department on behalf of the
municipality, less 4% of the balance, which sum shall be
retained by the State Treasurer to cover the costs incurred by
the Department in administering and enforcing the provisions
of this Section, as provided herein. The Department, at the
time of each monthly disbursement to the municipalities, shall
prepare and certify to the Comptroller the amount so retained
by the State Treasurer, which shall be paid into the General
Revenue Fund of the State Treasury.
Within 10 days after receipt by the Comptroller of the
disbursement certification to the municipalities and the
General Revenue Fund provided for in this Section to be given
to the Comptroller by the Department, the Comptroller shall

cause the warrants to be drawn for the respective amounts in
accordance with the directions contained in the certification.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business that, under the Constitution of the United
States, may not be made the subject of taxation by this State.
An ordinance or resolution imposing a tax hereunder or
effecting a change in the rate thereof shall be effective on
the first day of the calendar month next following the
expiration of the publication period provided in Section 1-2-4
in respect to municipalities governed by that Section.
The corporate authorities of any municipality that levies
a tax authorized by this Section shall transmit to the
Department of Revenue on or not later than 5 days after the
effective date of the ordinance or resolution a certified copy
of the ordinance or resolution imposing the tax; whereupon,
the Department of Revenue shall proceed to administer and
enforce this Section on behalf of the municipality as of the
effective date of the ordinance or resolution. Upon a change
in rate of a tax levied hereunder, or upon the discontinuance
of the tax, the corporate authorities of the municipality
shall, on or not later than 5 days after the effective date of
the ordinance or resolution discontinuing the tax or effecting
a change in rate, transmit to the Department of Revenue a
certified copy of the ordinance or resolution effecting the
change or discontinuance. The amounts disbursed to any

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

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

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

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

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

Authority as of the first day of the third calendar month
following the date of filing.
The tax authorized to be levied under this subsection may
be levied within all or any part of the following described
portions of the metropolitan area:
(1) that portion of the City of Chicago located within
the following area: Beginning at the point of intersection
of the Cook County - DuPage County line and York Road, then
North along York Road to its intersection with Touhy
Avenue, then east along Touhy Avenue to its intersection
with the Northwest Tollway, then southeast along the
Northwest Tollway to its intersection with Lee Street,
then south along Lee Street to Higgins Road, then south
and east along Higgins Road to its intersection with
Mannheim Road, then south along Mannheim Road to its
intersection with Irving Park Road, then west along Irving
Park Road to its intersection with the Cook County -
DuPage County line, then north and west along the county
line to the point of beginning; and
(2) that portion of the City of Chicago located within
the following area: Beginning at the intersection of West
55th Street with Central Avenue, then east along West 55th
Street to its intersection with South Cicero Avenue, then
south along South Cicero Avenue to its intersection with
West 63rd Street, then west along West 63rd Street to its
intersection with South Central Avenue, then north along

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

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

determine all rights to credit memoranda arising on account of
the erroneous payment of tax or penalty under this subsection.
In the administration of and compliance with this subsection,
the Department and persons who are subject to this subsection
shall have the same rights, remedies, privileges, immunities,
powers, and duties, shall be subject to the same conditions,
restrictions, limitations, penalties, and definitions of
terms, and shall employ the same modes of procedure as are
prescribed in the Hotel Operators' Occupation Tax Act (except
where that Act is inconsistent with this subsection), as fully
as if the provisions contained in the Hotel Operators'
Occupation Tax Act were set out in this subsection.
Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause a warrant to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Metropolitan Pier and Exposition
Authority trust fund held by the State Treasurer as trustee
for the Authority.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
tax liability for that tax by separately stating that tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State taxes imposed under the Hotel

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

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

Automobile Renting Occupation and Use Tax Act shall permit
that person to engage in a business that is taxable under any
ordinance enacted under this subsection without registering
separately with the Department under that ordinance or under
this subsection. The Department shall have full power to
administer and enforce this subsection, to collect all taxes
and penalties due under this subsection, to dispose of taxes
and penalties so collected in the manner provided in this
subsection, and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty
under this subsection. In the administration of and compliance
with this subsection, the Department and persons who are
subject to this subsection shall have the same rights,
remedies, privileges, immunities, powers, and duties, be
subject to the same conditions, restrictions, limitations,
penalties, and definitions of terms, and employ the same modes
of procedure as are prescribed in Sections 2 and 3 (in respect
to all provisions of those Sections other than the State rate
of tax; and in respect to the provisions of the Retailers'
Occupation Tax Act referred to in those Sections, except as to
the disposition of taxes and penalties collected, except for
the provision allowing retailers a deduction from the tax to
cover certain costs, and except that credit memoranda issued
under this subsection may not be used to discharge any State
tax liability) of the Automobile Renting Occupation and Use
Tax Act, as fully as if provisions contained in those Sections

of that Act were set forth in this subsection.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
tax liability under this subsection by separately stating that
tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax that sellers
are required to collect under the Automobile Renting
Occupation and Use Tax Act, pursuant to bracket schedules as
the Department may prescribe.
Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause a warrant to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Metropolitan Pier and Exposition
Authority trust fund held by the State Treasurer as trustee
for the Authority.
Except as otherwise provided in this paragraph, the
Department shall forthwith pay over to the State Treasurer, ex
officio, as trustee, all taxes and penalties collected under
this subsection for deposit into a trust fund held outside the
State Treasury. On or before the 25th day of each calendar
month, the Department shall certify to the Comptroller the
amounts to be paid under subsection (g) of this Section (not
including credit memoranda) collected under this subsection

during the second preceding calendar month by the Department,
less any amount determined by the Department to be necessary
for payment of refunds, less 1.5% of the remainder, which the
Department shall transfer into the Tax Compliance and
Administration Fund. The Department, at the time of each
monthly disbursement to the Authority, shall prepare and
certify to the State Comptroller the amount to be transferred
into the Tax Compliance and Administration Fund under this
subsection. Within 10 days after receipt by the Comptroller of
the Department's certification, the Comptroller shall cause
the orders to be drawn for such amounts, and the Treasurer
shall administer the amounts distributed to the Authority as
required in subsection (g).
Nothing in this subsection authorizes the Authority to
impose a tax upon the privilege of engaging in any business
that under the Constitution of the United States may not be
made the subject of taxation by this State.
A certified copy of any ordinance imposing or
discontinuing a tax under this subsection or effecting a
change in the rate of that tax shall be filed with the Illinois
Department of Revenue, whereupon the Department shall proceed
to administer and enforce this subsection on behalf of the
Authority as of the first day of the third calendar month
following the date of filing.
(e) By ordinance the Authority shall, as soon as
practicable after July 1, 1992 (the effective date of Public

Act 87-733), impose a tax upon the privilege of using in the
metropolitan area an automobile that is rented from a rentor
outside Illinois and is titled or registered with an agency of
this State's government at a rate of 6% of the rental price of
that automobile, except that no tax shall be imposed on the
privilege of using automobiles rented for use as taxicabs or
in livery service. The tax shall be collected from persons
whose Illinois address for titling or registration purposes is
given as being in the metropolitan area. The tax shall be
collected by the Department of Revenue for the Authority. The
tax must be paid to the State or an exemption determination
must be obtained from the Department of Revenue before the
title or certificate of registration for the property may be
issued. The tax or proof of exemption may be transmitted to the
Department by way of the State agency with which or State
officer with whom the tangible personal property must be
titled or registered if the Department and that agency or
State officer determine that this procedure will expedite the
processing of applications for title or registration.
The Department shall have full power to administer and
enforce this subsection, to collect all taxes, penalties, and
interest due under this subsection, to dispose of taxes,
penalties, and interest so collected in the manner provided in
this subsection, and to determine all rights to credit
memoranda or refunds arising on account of the erroneous
payment of tax, penalty, or interest under this subsection. In

the administration of and compliance with this subsection, the
Department and persons who are subject to this subsection
shall have the same rights, remedies, privileges, immunities,
powers, and duties, be subject to the same conditions,
restrictions, limitations, penalties, and definitions of
terms, and employ the same modes of procedure as are
prescribed in Sections 2 and 4 (except provisions pertaining
to the State rate of tax; and in respect to the provisions of
the Use Tax Act referred to in that Section, except provisions
concerning collection or refunding of the tax by retailers,
except the provisions of Section 19 pertaining to claims by
retailers, except the last paragraph concerning refunds, and
except that credit memoranda issued under this subsection may
not be used to discharge any State tax liability) of the
Automobile Renting Occupation and Use Tax Act, as fully as if
provisions contained in those Sections of that Act were set
forth in this subsection.
Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause a warrant to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Metropolitan Pier and Exposition
Authority trust fund held by the State Treasurer as trustee
for the Authority.

Except as otherwise provided in this paragraph, the
Department shall forthwith pay over to the State Treasurer, ex
officio, as trustee, all taxes, penalties, and interest
collected under this subsection for deposit into a trust fund
held outside the State Treasury. On or before the 25th day of
each calendar month, the Department shall certify to the State
Comptroller the amounts to be paid under subsection (g) of
this Section, which shall be the amounts (not including credit
memoranda) collected under this subsection during the second
preceding calendar month by the Department, less any amounts
determined by the Department to be necessary for payment of
refunds, less 1.5% of the remainder, which the Department
shall transfer into the Tax Compliance and Administration
Fund. The Department, at the time of each monthly disbursement
to the Authority, shall prepare and certify to the State
Comptroller the amount to be transferred into the Tax
Compliance and Administration Fund under this subsection.
Within 10 days after receipt by the State Comptroller of the
Department's certification, the Comptroller shall cause the
orders to be drawn for such amounts, and the Treasurer shall
administer the amounts distributed to the Authority as
required in subsection (g).
A certified copy of any ordinance imposing or
discontinuing a tax or effecting a change in the rate of that
tax shall be filed with the Illinois Department of Revenue,
whereupon the Department shall proceed to administer and

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

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

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

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

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

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

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

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

arising on account of the erroneous payment of tax or penalty
hereunder. In the administration of, and compliance with, this
Section, the Department and persons who are subject to this
Section shall have the same rights, remedies, privileges,
immunities, powers and duties, and be subject to the same
conditions, restrictions, limitations, penalties and
definitions of terms, and employ the same modes of procedure,
as are prescribed in The Hotel Operators' Occupation Tax Act
(except where that Act is inconsistent herewith), as the same
is now or may hereafter be amended, as fully as if the
provisions contained in The Hotel Operators' Occupation Tax
Act were set forth herein.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in such
notification from the Department. Such refund shall be paid by
the State Treasurer out of the amounts held by the State
Treasurer as trustee for the Authority.
Persons subject to any tax imposed pursuant to authority
granted by this Section may reimburse themselves for their tax
liability for such tax by separately stating such tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State tax imposed under The Hotel
Operators' Occupation Tax Act, the municipal tax imposed under

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

(i) the portion to be paid to the Authority, (ii) the portion
to be paid into the General Revenue Fund of the State Treasury
on behalf of the Authority as repayment of amounts advanced to
the Authority pursuant to appropriation from the Illinois
Sports Facilities Fund.
With respect to each State fiscal year, of the total
amount to be paid to or on behalf of the Authority, the
Department shall certify that payments shall first be made
directly to the Authority in an amount equal to any difference
between the annual amount certified by the Chairman of the
Authority pursuant to Section 8.25-4 of the State Finance Act
and the amount appropriated to the Authority from the Illinois
Sports Facilities Fund. Next, the Department shall certify
that payment shall be made into the General Revenue Fund of the
State Treasury in an amount equal to the difference between
(i) the lesser of (x) the amount appropriated from the
Illinois Sports Facilities Fund to the Authority and (y) the
annual amount certified by the Chairman of the Authority
pursuant to Section 8.25-4 of the State Finance Act and (ii)
$10,000,000. The Department shall certify that all additional
amounts shall be paid to the Authority and used for its
corporate purposes.
Within 10 days after receipt, by the Comptroller, of the
Department's monthly certification of amounts to be paid to or
on behalf of the Authority and amounts to be paid into the
General Revenue Fund, the Comptroller shall cause the warrants

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

purposes of the Authority. The State Treasurer shall deposit
$5,000,000 of the amount received into the General Revenue
Fund; thereafter, at the beginning of each fiscal year the
State Treasurer shall certify to the State Comptroller for all
prior fiscal years the cumulative amount of any deficiencies
in repayments to the City of Chicago of amounts in the Local
Government Distributive Fund that would otherwise have been
allocated to the City of Chicago under the State Revenue
Sharing Act but instead were paid into the General Revenue
Fund under Section 6 of the Hotel Operators' Occupation Tax
Act and that have not been reimbursed, and the Comptroller
shall, during the fiscal year at the beginning of which the
certification was made, cause warrants to be drawn from the
amount received for the repayment of that cumulative amount to
the City of Chicago until that cumulative amount has been
fully reimbursed; thereafter, the State Treasurer shall
deposit the balance of the amount received into the trust fund
established outside the State Treasury under subsection (g) of
Section 13 of the Metropolitan Pier and Exposition Authority
Act.
Nothing in this Section shall be construed to authorize
the Authority to impose a tax upon the privilege of engaging in
any business which under the constitution of the United States
may not be made the subject of taxation by this State.
An ordinance or resolution imposing or discontinuing a tax
hereunder or effecting a change in the rate thereof shall be

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

tax of three-tenths of a cent per gallon is imposed upon the
privilege of being a receiver in this State of fuel for sale or
use. Beginning January 1, 2021, this tax is not imposed on
sales of aviation fuel for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.
The tax shall be paid by the receiver in this State who
first sells or uses fuel. In the case of a sale, the tax shall
be stated as a separate item on the invoice.
For the purpose of the tax imposed by this Section, being a
receiver of "motor fuel" as defined by Section 1.1 of this Act,
and aviation fuels, home heating oil and kerosene, but
excluding liquified petroleum gases, is subject to tax without
regard to whether the fuel is intended to be used for operation
of motor vehicles on the public highways and waters. However,
no such tax shall be imposed upon the importation or receipt of
aviation fuels and kerosene at airports with over 300,000
operations per year, for years prior to 1991, and over 170,000
operations per year beginning in 1991, located in a city of
more than 1,000,000 inhabitants for sale to or use by holders
of certificates of public convenience and necessity or foreign
air carrier permits, issued by the United States Department of
Transportation, and their air carrier affiliates, or upon the
importation or receipt of aviation fuels and kerosene at
facilities owned or leased by those certificate or permit
holders and used in their activities at an airport described

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

preceding 12-month period. If the retailer meets the
threshold of either subparagraph (A) or (B) for a 12-month
period, he or she is considered a retailer maintaining a
place of business in this State and is required to collect
and remit the tax imposed under this Act and file returns
for one year. At the end of that one-year period, the
retailer shall determine whether he or she met the
threshold of either subparagraph (A) or (B) during the
preceding 12-month period. If the retailer met the
criteria in either subparagraph (A) or (B) for the
preceding 12-month period, he or she is considered a
retailer maintaining a place of business in this State and
is required to collect and remit the tax imposed under
this Act and file returns for the subsequent year. If at
the end of a one-year period a retailer that was required
to collect and remit the tax imposed under this Act
determines that he or she did not meet the threshold in
either subparagraph (A) or (B) during the preceding
12-month period, the retailer shall subsequently determine
on a quarterly basis, ending on the last day of March,
June, September, and December, whether he or she meets the
threshold of either subparagraph (A) or (B) for the
preceding 12-month period.
Beginning January 1, 2020, neither the gross receipts
from nor the number of separate transactions for sales of
tangible personal property to purchasers in Illinois that

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

imposed by this Act applies to 100% of the proceeds of sales of
mid-range ethanol blends made during that time.
With respect to majority blended ethanol fuel, the tax
imposed by this Act does not apply to the proceeds of sales
made on or after July 1, 2003 and on or before December 31,
2028 but applies to 100% of the proceeds of sales made
thereafter.
With respect to biodiesel blends with no less than 1% and
no more than 10% biodiesel, the tax imposed by this Act applies
to (i) 80% of the proceeds of sales made on or after July 1,
2003 and on or before December 31, 2018 and (ii) 100% of the
proceeds of sales made after December 31, 2018 and before
January 1, 2024. On and after January 1, 2024 and on or before
December 31, 2030, the taxation of biodiesel, renewable
diesel, and biodiesel blends shall be as provided in Section
3-5.1. If, at any time, however, the tax under this Act on
sales of biodiesel blends with no less than 1% and no more than
10% biodiesel is imposed at the rate of 1.25%, then the tax
imposed by this Act applies to 100% of the proceeds of sales of
biodiesel blends with no less than 1% and no more than 10%
biodiesel made during that time.
With respect to biodiesel and biodiesel blends with more
than 10% but no more than 99% biodiesel, the tax imposed by
this Act does not apply to the proceeds of sales made on or
after July 1, 2003 and on or before December 31, 2023. On and
after January 1, 2024 and on or before December 31, 2030, the

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

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

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

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

likely multistate taxation, the tax imposed by this Act does
not apply to the use of tangible personal property in this
State under the following circumstances:
(a) The use, in this State, of tangible personal property
acquired outside this State by a nonresident individual and
brought into this State by the individual for his or her own
use while temporarily within this State or while passing
through this State.
(b) (Blank).
(c) The use, in this State, by owners or , lessors,
lessees, or shippers of tangible personal property that is
utilized by interstate carriers for hire for use as rolling
stock moving in interstate commerce as long as so used by the
interstate carriers for hire, and equipment operated by a
telecommunications provider, licensed as a common carrier by
the Federal Communications Commission, which is permanently
installed in or affixed to aircraft moving in interstate
commerce.
(d) The use, in this State, of tangible personal property
that is acquired outside this State and caused to be brought
into this State by a person who has already paid a tax in
another State in respect to the sale, purchase, or use of that
property, to the extent of the amount of the tax properly due
and paid in the other State.
(e) The temporary storage, in this State, of tangible
personal property that is acquired outside this State and

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

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

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

signed and dated certification, on a form prescribed
by the Department, certifying that the requirements of
this item (1) are met. The certificate must also
include the name and address of the purchaser, the
address of the location where the aircraft is to be
titled or registered, the address of the primary
physical location of the aircraft, and other
information that the Department may reasonably
require.
(2) Beginning on July 1, 2007, no tax is imposed under
this Act on the use of an aircraft, as defined in Section 3
of the Illinois Aeronautics Act, that is temporarily
located in this State for the purpose of a prepurchase
evaluation if all of the following conditions are met:
(A) the aircraft is not based or registered in
this State after the prepurchase evaluation; and
(B) the purchaser provides the Department with a
signed and dated certification, on a form prescribed
by the Department, certifying that the requirements of
this item (2) are met. The certificate must also
include the name and address of the purchaser, the
address of the location where the aircraft is to be
titled or registered, the address of the primary
physical location of the aircraft, and other
information that the Department may reasonably
require.

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

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

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

(35 ILCS 105/9) (from Ch. 120, par. 439.9)
Sec. 9. Except as to motor vehicles, watercraft, aircraft,
and trailers that are required to be registered with an agency
of this State, each retailer required or authorized to collect
the tax imposed by this Act shall pay to the Department the
amount of such tax (except as otherwise provided) at the time
when he is required to file his return for the period during
which such tax was collected, less a discount of 2.1% prior to
January 1, 1990, and 1.75% on and after January 1, 1990, or $5
per calendar year, whichever is greater, which is allowed to
reimburse the retailer for expenses incurred in collecting the
tax, keeping records, preparing and filing returns, remitting
the tax and supplying data to the Department on request. When
determining the discount allowed under this Section, retailers
shall include the amount of tax that would have been due at the
6.25% rate but for the 1.25% rate imposed on sales tax holiday
items under Public Act 102-700. The discount under this
Section is not allowed for the 1.25% portion of taxes paid on
aviation fuel that is subject to the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. When determining
the discount allowed under this Section, retailers shall
include the amount of tax that would have been due at the 1%
rate but for the 0% rate imposed under Public Act 102-700. In
the case of retailers who report and pay the tax on a
transaction by transaction basis, as provided in this Section,
such discount shall be taken with each such tax remittance

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

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

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

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

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

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

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

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

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

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

If any such payment provided for in this Section exceeds
the taxpayer's liabilities under this Act, the Retailers'
Occupation Tax Act, the Service Occupation Tax Act and the
Service Use Tax Act, as shown by an original monthly return,
the Department shall issue to the taxpayer a credit memorandum
no later than 30 days after the date of payment, which
memorandum may be submitted by the taxpayer to the Department
in payment of tax liability subsequently to be remitted by the
taxpayer to the Department or be assigned by the taxpayer to a
similar taxpayer under this Act, the Retailers' Occupation Tax
Act, the Service Occupation Tax Act or the Service Use Tax Act,
in accordance with reasonable rules and regulations to be
prescribed by the Department, except that if such excess
payment is shown on an original monthly return and is made
after December 31, 1986, no credit memorandum shall be issued,
unless requested by the taxpayer. If no such request is made,
the taxpayer may credit such excess payment against tax
liability subsequently to be remitted by the taxpayer to the
Department under this Act, the Retailers' Occupation Tax Act,
the Service Occupation Tax Act or the Service Use Tax Act, in
accordance with reasonable rules and regulations prescribed by
the Department. If the Department subsequently determines that
all or any part of the credit taken was not actually due to the
taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
be reduced by 2.1% or 1.75% of the difference between the
credit taken and that actually due, and the taxpayer shall be

liable for penalties and interest on such difference.
If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February, and March of a given
year being due by April 20 of such year; with the return for
April, May and June of a given year being due by July 20 of
such year; with the return for July, August and September of a
given year being due by October 20 of such year, and with the
return for October, November and December of a given year
being due by January 20 of the following year.
If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
liability to the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January 20
of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act concerning
the time within which a retailer may file his return, in the
case of any retailer who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such retailer shall file a final return under this Act with the

Department not more than one month after discontinuing such
business.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, except as otherwise provided in this
Section, every retailer selling this kind of tangible personal
property shall file, with the Department, upon a form to be
prescribed and supplied by the Department, a separate return
for each such item of tangible personal property which the
retailer sells, except that if, in the same transaction, (i) a
retailer of aircraft, watercraft, motor vehicles or trailers
transfers more than one aircraft, watercraft, motor vehicle or
trailer to another aircraft, watercraft, motor vehicle or
trailer retailer for the purpose of resale or (ii) a retailer
of aircraft, watercraft, motor vehicles, or trailers transfers
more than one aircraft, watercraft, motor vehicle, or trailer
to a purchaser for use as a qualifying rolling stock as
provided in Section 3-55 of this Act, then that seller may
report the transfer of all the aircraft, watercraft, motor
vehicles or trailers involved in that transaction to the
Department on the same uniform invoice-transaction reporting
return form. For purposes of this Section, "watercraft" means
a Class 2, Class 3, or Class 4 watercraft as defined in Section
3-2 of the Boat Registration and Safety Act, a personal
watercraft, or any boat equipped with an inboard motor.
In addition, with respect to motor vehicles, watercraft,

aircraft, and trailers that are required to be registered with
an agency of this State, every person who is engaged in the
business of leasing or renting such items and who, in
connection with such business, sells any such item to a
retailer for the purpose of resale is, notwithstanding any
other provision of this Section to the contrary, authorized to
meet the return-filing requirement of this Act by reporting
the transfer of all the aircraft, watercraft, motor vehicles,
or trailers transferred for resale during a month to the
Department on the same uniform invoice-transaction reporting
return form on or before the 20th of the month following the
month in which the transfer takes place. Notwithstanding any
other provision of this Act to the contrary, all returns filed
under this paragraph must be filed by electronic means in the
manner and form as required by the Department.
The transaction reporting return in the case of motor
vehicles or trailers that are required to be registered with
an agency of this State, shall be the same document as the
Uniform Invoice referred to in Section 5-402 of the Illinois
Vehicle Code and must show the name and address of the seller;
the name and address of the purchaser; the amount of the
selling price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 2 of this Act allows an exemption for
the value of traded-in property; the balance payable after

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

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

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

Where a retailer collects the tax with respect to the
selling price of tangible personal property which he sells and
the purchaser thereafter returns such tangible personal
property and the retailer refunds the selling price thereof to
the purchaser, such retailer shall also refund, to the
purchaser, the tax so collected from the purchaser. When
filing his return for the period in which he refunds such tax
to the purchaser, the retailer may deduct the amount of the tax
so refunded by him to the purchaser from any other use tax
which such retailer may be required to pay or remit to the
Department, as shown by such return, if the amount of the tax
to be deducted was previously remitted to the Department by
such retailer. If the retailer has not previously remitted the
amount of such tax to the Department, he is entitled to no
deduction under this Act upon refunding such tax to the
purchaser.
Any retailer filing a return under this Section shall also
include (for the purpose of paying tax thereon) the total tax
covered by such return upon the selling price of tangible
personal property purchased by him at retail from a retailer,
but as to which the tax imposed by this Act was not collected
from the retailer filing such return, and such retailer shall
remit the amount of such tax to the Department when filing such
return.
If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint

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

personal property which is purchased outside Illinois at
retail from a retailer and which is titled or registered by an
agency of this State's government and (ii) aviation fuel sold
on or after December 1, 2019. This exception for aviation fuel
only applies for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be
required for refunds of the 20% portion of the tax on aviation
fuel under this Act, which amount shall be deposited into the
Aviation Fuel Sales Tax Refund Fund. The Department shall only
pay moneys into the State Aviation Program Fund and the
Aviation Fuels Sales Tax Refund Fund under this Act for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 100% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol. If, in any
month, the tax on sales tax holiday items, as defined in
Section 3-6, is imposed at the rate of 1.25%, then the
Department shall pay 100% of the net revenue realized for that
month from the 1.25% rate on the selling price of sales tax

holiday items into the State and Local Sales Tax Reform Fund.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the net revenue
realized for the preceding month from the 6.25% general rate
on the selling price of tangible personal property which is
purchased outside Illinois at retail from a retailer and which
is titled or registered by an agency of this State's
government.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2011, each month the Department shall
pay into the Clean Air Act Permit Fund 80% of the net revenue
realized for the preceding month from the 6.25% general rate
on the selling price of sorbents used in Illinois in the
process of sorbent injection as used to comply with the
Environmental Protection Act or the federal Clean Air Act, but
the total payment into the Clean Air Act Permit Fund under this
Act and the Retailers' Occupation Tax Act shall not exceed
$2,000,000 in any fiscal year.
Beginning July 1, 2013, each month the Department shall
pay into the Underground Storage Tank Fund from the proceeds

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

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

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

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

2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 300,000,000
2022 300,000,000
2023 300,000,000
2024 300,000,000
2025 300,000,000

2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034 375,000,000
2035 375,000,000
2036 450,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition

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

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

Section 2-3 of the Downstate Public Transportation Act.
Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim, and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year............................Total Deposit
2024....................................$200,000,000
2025....................................$206,000,000
2026....................................$212,200,000

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

payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 32% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2023 and until July 1, 2024, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 48% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2024 and until July 1, 2025, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 64% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning on July 1, 2025, subject to the payment of amounts
into the State and Local Sales Tax Reform Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the

Illinois Tax Increment Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 80% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. As used in this
paragraph "motor fuel" has the meaning given to that term in
Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the
meaning given to that term in Section 3-40 of this Act.
Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the State
Treasury and 25% shall be reserved in a special account and
used only for the transfer to the Common School Fund as part of
the monthly transfer from the General Revenue Fund in
accordance with Section 8a of the State Finance Act.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
For greater simplicity of administration, manufacturers,

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

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

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

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

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

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

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

a common carrier by rail, of tangible personal property
which belongs to such carrier for hire, and as to which
such carrier receives the physical possession of the
repaired, reconditioned or remodeled item of tangible
personal property in Illinois, and which such carrier
transports, or shares with another common carrier in the
transportation of such property, out of Illinois on a
standard uniform bill of lading showing the person who
repaired, reconditioned or remodeled the property to a
destination outside Illinois, for use outside Illinois.
(5b) a sale or transfer of tangible personal property
which is produced by the seller thereof on special order
in such a way as to have made the applicable tax the
Service Occupation Tax or the Service Use Tax, rather than
the Retailers' Occupation Tax or the Use Tax, for an
interstate carrier by rail which receives the physical
possession of such property in Illinois, and which
transports such property, or shares with another common
carrier in the transportation of such property, out of
Illinois on a standard uniform bill of lading showing the
seller of the property as the shipper or consignor of such
property to a destination outside Illinois, for use
outside Illinois.
(6) until July 1, 2003, a sale or transfer of
distillation machinery and equipment, sold as a unit or
kit and assembled or installed by the retailer, which

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

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

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

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

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

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

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

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

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

serviceman maintaining a place of business in this State
and is required to collect and remit the tax imposed under
this Act and file returns for the subsequent year. If at
the end of a one-year period a serviceman that was
required to collect and remit the tax imposed under this
Act determines that he or she did not meet the criteria in
either subparagraph (A) or (B) during the preceding
12-month period, the serviceman subsequently shall
determine on a quarterly basis, ending on the last day of
March, June, September, and December, whether he or she
meets the criteria of either subparagraph (A) or (B) for
the preceding 12-month period.
Beginning January 1, 2020, neither the gross receipts
from nor the number of separate transactions for sales of
service to purchasers in Illinois that a serviceman makes
through a marketplace facilitator and for which the
serviceman has received a certification from the
marketplace facilitator pursuant to Section 2d of this Act
shall be included for purposes of determining whether he
or she has met the thresholds of this paragraph (9).
(10) Beginning January 1, 2020, a marketplace
facilitator, as defined in Section 2d of this Act.
(Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17;
100-587, eff. 6-4-18; 100-863, eff. 8-14-18; 101-9, Article
10, Section 10-15, eff. 6-5-19; 101-9, Article 25, Section
25-10, eff. 6-5-19; 101-604, eff. 12-13-19.)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
applies to (i) 80% of the selling price of property
transferred as an incident to the sale of service on or after
January 1, 2024 and on or before December 31, 2028 and (ii)
100% of the selling price of property transferred as an
incident to the sale of service after December 31, 2028. If, at
any time, however, the tax under this Act on sales of mid-range
ethanol blends is imposed at the rate of 1.25%, then the tax
imposed by this Act applies to 100% of the selling price of
mid-range ethanol blends transferred as an incident to the
sale of service during that time.
With respect to majority blended ethanol fuel, as defined
in the Use Tax Act, the tax imposed by this Act does not apply
to the selling price of property transferred as an incident to
the sale of service on or after July 1, 2003 and on or before
December 31, 2028 but applies to 100% of the selling price
thereafter.
With respect to biodiesel blends, as defined in the Use
Tax Act, with no less than 1% and no more than 10% biodiesel,
the tax imposed by this Act applies to (i) 80% of the selling
price of property transferred as an incident to the sale of
service on or after July 1, 2003 and on or before December 31,
2018 and (ii) 100% of the proceeds of the selling price after
December 31, 2018 and before January 1, 2024. On and after
January 1, 2024 and on or before December 31, 2030, the
taxation of biodiesel, renewable diesel, and biodiesel blends

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

transferred as an incident to the sale of those services.
Until July 1, 2022 and beginning again on July 1, 2023, the
tax shall be imposed at the rate of 1% on food prepared for
immediate consumption and transferred incident to a sale of
service subject to this Act or the Service Occupation Tax Act
by an entity licensed under the Hospital Licensing Act, the
Nursing Home Care Act, the Assisted Living and Shared Housing
Act, the ID/DD Community Care Act, the MC/DD Act, the
Specialized Mental Health Rehabilitation Act of 2013, or the
Child Care Act of 1969, or an entity that holds a permit issued
pursuant to the Life Care Facilities Act. Until July 1, 2022
and beginning again on July 1, 2023, the tax shall also be
imposed at the rate of 1% on food for human consumption that is
to be consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption and is not otherwise included in this
paragraph).
Beginning on July 1, 2022 and until July 1, 2023, the tax
shall be imposed at the rate of 0% on food prepared for
immediate consumption and transferred incident to a sale of
service subject to this Act or the Service Occupation Tax Act
by an entity licensed under the Hospital Licensing Act, the
Nursing Home Care Act, the Assisted Living and Shared Housing
Act, the ID/DD Community Care Act, the MC/DD Act, the
Specialized Mental Health Rehabilitation Act of 2013, or the

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

does not include coffee, tea, non-carbonated water, infant
formula, milk or milk products as defined in the Grade A
Pasteurized Milk and Milk Products Act, or drinks containing
50% or more natural fruit or vegetable juice.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "soft drinks" means non-alcoholic
beverages that contain natural or artificial sweeteners. "Soft
drinks" does not include beverages that contain milk or milk
products, soy, rice or similar milk substitutes, or greater
than 50% of vegetable or fruit juice by volume.
Until August 1, 2009, and notwithstanding any other
provisions of this Act, "food for human consumption that is to
be consumed off the premises where it is sold" includes all
food sold through a vending machine, except soft drinks and
food products that are dispensed hot from a vending machine,
regardless of the location of the vending machine. Beginning
August 1, 2009, and notwithstanding any other provisions of
this Act, "food for human consumption that is to be consumed
off the premises where it is sold" includes all food sold
through a vending machine, except soft drinks, candy, and food
products that are dispensed hot from a vending machine,
regardless of the location of the vending machine.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "food for human consumption that
is to be consumed off the premises where it is sold" does not
include candy. For purposes of this Section, "candy" means a

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

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

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

be promulgated by the Department. Such return shall be filed
on a form prescribed by the Department and shall contain such
information as the Department may reasonably require. The
return shall include the gross receipts which were received
during the preceding calendar month or quarter on the
following items upon which tax would have been due but for the
0% rate imposed under this amendatory Act of the 102nd General
Assembly: (i) food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption); and (ii) food prepared for immediate
consumption and transferred incident to a sale of service
subject to this Act or the Service Occupation Tax Act by an
entity licensed under the Hospital Licensing Act, the Nursing
Home Care Act, the Assisted Living and Shared Housing Act, the
ID/DD Community Care Act, the MC/DD Act, the Specialized
Mental Health Rehabilitation Act of 2013, or the Child Care
Act of 1969, or an entity that holds a permit issued pursuant
to the Life Care Facilities Act. The return shall also include
the amount of tax that would have been due on the items listed
in the previous sentence but for the 0% rate imposed under this
amendatory Act of the 102nd General Assembly.
In the case of leases, except as otherwise provided in
this Act, the lessor, in collecting the tax, may collect for
each tax return period, only the tax applicable to that part of

the selling price actually received during such tax return
period.
On and after January 1, 2018, with respect to servicemen
whose annual gross receipts average $20,000 or more, all
returns required to be filed pursuant to this Act shall be
filed electronically. Servicemen who demonstrate that they do
not have access to the Internet or demonstrate hardship in
filing electronically may petition the Department to waive the
electronic filing requirement.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in business as a serviceman in this
State;
3. The total amount of taxable receipts received by
him during the preceding calendar month, including
receipts from charge and time sales, but less all
deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;

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

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

Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make
payments by electronic funds transfer. All taxpayers required
to make payments by electronic funds transfer shall make those
payments for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those
payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
If the serviceman is otherwise required to file a monthly
return and if the serviceman's average monthly tax liability
to the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February and March of a given year
being due by April 20 of such year; with the return for April,
May and June of a given year being due by July 20 of such year;
with the return for July, August and September of a given year
being due by October 20 of such year, and with the return for
October, November and December of a given year being due by
January 20 of the following year.

If the serviceman is otherwise required to file a monthly
or quarterly return and if the serviceman's average monthly
tax liability to the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January 20
of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act concerning
the time within which a serviceman may file his return, in the
case of any serviceman who ceases to engage in a kind of
business which makes him responsible for filing returns under
this Act, such serviceman shall file a final return under this
Act with the Department not more than 1 month after
discontinuing such business.
Where a serviceman collects the tax with respect to the
selling price of property which he sells and the purchaser
thereafter returns such property and the serviceman refunds
the selling price thereof to the purchaser, such serviceman
shall also refund, to the purchaser, the tax so collected from
the purchaser. When filing his return for the period in which
he refunds such tax to the purchaser, the serviceman may
deduct the amount of the tax so refunded by him to the
purchaser from any other Service Use Tax, Service Occupation
Tax, retailers' occupation tax or use tax which such

serviceman may be required to pay or remit to the Department,
as shown by such return, provided that the amount of the tax to
be deducted shall previously have been remitted to the
Department by such serviceman. If the serviceman shall not
previously have remitted the amount of such tax to the
Department, he shall be entitled to no deduction hereunder
upon refunding such tax to the purchaser.
Any serviceman filing a return hereunder shall also
include the total tax upon the selling price of tangible
personal property purchased for use by him as an incident to a
sale of service, and such serviceman shall remit the amount of
such tax to the Department when filing such return.
If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable servicemen, who are required to file
returns hereunder and also under the Service Occupation Tax
Act, to furnish all the return information required by both
Acts on the one form.
Where the serviceman has more than one business registered
with the Department under separate registration hereunder,
such serviceman shall not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Tax Reform Fund, a special fund in
the State Treasury, the net revenue realized for the preceding

month from the 1% tax imposed under this Act.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 20% of the
net revenue realized for the preceding month from the 6.25%
general rate on transfers of tangible personal property, other
than (i) tangible personal property which is purchased outside
Illinois at retail from a retailer and which is titled or
registered by an agency of this State's government and (ii)
aviation fuel sold on or after December 1, 2019. This
exception for aviation fuel only applies for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be
required for refunds of the 20% portion of the tax on aviation
fuel under this Act, which amount shall be deposited into the
Aviation Fuel Sales Tax Refund Fund. The Department shall only
pay moneys into the State Aviation Program Fund and the
Aviation Fuel Sales Tax Refund Fund under this Act for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 100% of the

net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2013, each month the Department shall
pay into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service
Occupation Tax Act, and the Retailers' Occupation Tax Act an
amount equal to the average monthly deficit in the Underground
Storage Tank Fund during the prior year, as certified annually
by the Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Use Tax Act, the Service Occupation Tax Act, and the
Retailers' Occupation Tax Act shall not exceed $18,000,000 in
any State fiscal year. As used in this paragraph, the "average
monthly deficit" shall be equal to the difference between the
average monthly claims for payment by the fund and the average
monthly revenues deposited into the fund, excluding payments
made pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, this Act, the

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

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

Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois
Fund; provided, however, that any amounts paid to the Build
Illinois Fund in any fiscal year pursuant to this sentence
shall be deemed to constitute payments pursuant to clause (b)
of the preceding sentence and shall reduce the amount
otherwise payable for such fiscal year pursuant to clause (b)
of the preceding sentence. The moneys received by the
Department pursuant to this Act and required to be deposited
into the Build Illinois Fund are subject to the pledge, claim
and charge set forth in Section 12 of the Build Illinois Bond
Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section

9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000

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

are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, for aviation fuel sold on or after December 1, 2019,
the Department shall each month deposit into the Aviation Fuel
Sales Tax Refund Fund an amount estimated by the Department to
be required for refunds of the 80% portion of the tax on

aviation fuel under this Act. The Department shall only
deposit moneys into the Aviation Fuel Sales Tax Refund Fund
under this paragraph for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois
Tax Increment Fund 0.27% of 80% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, pursuant to the preceding paragraphs or in
any amendments to this Section hereafter enacted, beginning on
the first day of the first calendar month to occur on or after
August 26, 2014 (the effective date of Public Act 98-1098),
each month, from the collections made under Section 9 of the
Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of
the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act, the Department shall pay into
the Tax Compliance and Administration Fund, to be used,
subject to appropriation, to fund additional auditors and
compliance personnel at the Department of Revenue, an amount

equal to 1/12 of 5% of 80% of the cash receipts collected
during the preceding fiscal year by the Audit Bureau of the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, the Retailers' Occupation Tax Act,
and associated local occupation and use taxes administered by
the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, and the Tax Compliance and Administration
Fund as provided in this Section, beginning on July 1, 2018 the
Department shall pay each month into the Downstate Public
Transportation Fund the moneys required to be so paid under
Section 2-3 of the Downstate Public Transportation Act.
Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and

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

2041....................................$419,600,000
2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the State and Local Sales Tax
Reform Fund, the Build Illinois Fund, the McCormick Place
Expansion Project Fund, the Energy Infrastructure Fund, and
the Tax Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 16% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2022 and until July 1, 2023, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 32% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2023 and until July 1, 2024, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 48% of the net revenue

realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2024 and until July 1, 2025, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 64% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning on July 1, 2025, subject to the payment of amounts
into the State and Local Sales Tax Reform Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 80% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. As used in this
paragraph "motor fuel" has the meaning given to that term in
Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the
meaning given to that term in Section 3-40 of the Use Tax Act.
Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the
General Revenue Fund of the State Treasury and 25% shall be
reserved in a special account and used only for the transfer to
the Common School Fund as part of the monthly transfer from the
General Revenue Fund in accordance with Section 8a of the

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

as defined in Section 1-187 of the Illinois Vehicle Code, that
are required to be registered with an agency of this State,
transferred by lease, as an incident of a sale of service, for
leases in effect, entered into, or renewed on or after January
1, 2025.
(35 ILCS 115/2) (from Ch. 120, par. 439.102)
Sec. 2. In this Act:
"Transfer" means any transfer of the title to property or
of the ownership of property whether or not the transferor
retains title as security for the payment of amounts due him
from the transferee. On and after January 1, 2025, "transfer"
also means any transfer of the possession or control of, the
right to possess or control, or a license to use, but not title
to, tangible personal property.
"Lease" means a transfer of the possession or control of,
the right to possess or control, or a license to use, but not
title to, tangible personal property for a fixed or
indeterminate term for consideration, regardless of the name
by which the transaction is called. "Lease" does not include a
lease entered into merely as a security agreement that does
not involve a transfer of possession or control from the
lessor to the lessee.
On and after January 1, 2025, the term "sale", when used in
this Act with respect to tangible personal property, includes
a lease.

"Cost Price" means the consideration paid by the
serviceman for a purchase, including, on and after January 1,
2025, a lease, valued in money, whether paid in money or
otherwise, including cash, credits and services, and shall be
determined without any deduction on account of the supplier's
cost of the property sold or on account of any other expense
incurred by the supplier. When a serviceman contracts out part
or all of the services required in his sale of service, it
shall be presumed that the cost price to the serviceman of the
property transferred to him by his or her subcontractor is
equal to 50% of the subcontractor's charges to the serviceman
in the absence of proof of the consideration paid by the
subcontractor for the purchase of such property.
"Department" means the Department of Revenue.
"Person" means any natural individual, firm, partnership,
association, joint stock company, joint venture, public or
private corporation, limited liability company, and any
receiver, executor, trustee, guardian or other representative
appointed by order of any court.
"Sale of Service" means any transaction except:
(a) A retail sale of tangible personal property taxable
under the Retailers' Occupation Tax Act or under the Use Tax
Act.
(b) A sale of tangible personal property for the purpose
of resale made in compliance with Section 2c of the Retailers'
Occupation Tax Act.

(c) Except as hereinafter provided, a sale or transfer of
tangible personal property as an incident to the rendering of
service for or by any governmental body or for or by any
corporation, society, association, foundation or institution
organized and operated exclusively for charitable, religious
or educational purposes or any not-for-profit corporation,
society, association, foundation, institution or organization
which has no compensated officers or employees and which is
organized and operated primarily for the recreation of persons
55 years of age or older. A limited liability company may
qualify for the exemption under this paragraph only if the
limited liability company is organized and operated
exclusively for educational purposes.
(d) (Blank).
(d-1) A sale or transfer of tangible personal property as
an incident to the rendering of service for owners or ,
lessors, lessees, or shippers of tangible personal property
which is utilized by interstate carriers for hire for use as
rolling stock moving in interstate commerce, and equipment
operated by a telecommunications provider, licensed as a
common carrier by the Federal Communications Commission, which
is permanently installed in or affixed to aircraft moving in
interstate commerce.
(d-1.1) On and after July 1, 2003 and through June 30,
2004, a sale or transfer of a motor vehicle of the second
division with a gross vehicle weight in excess of 8,000 pounds

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

the Use Tax Act, the tax is imposed at the rate of 1.25%.
With respect to gasohol, as defined in the Use Tax Act, the
tax imposed by this Act shall apply to (i) 70% of the cost
price of property transferred as an incident to the sale of
service on or after January 1, 1990, and before July 1, 2003,
(ii) 80% of the selling price of property transferred as an
incident to the sale of service on or after July 1, 2003 and on
or before July 1, 2017, (iii) 100% of the selling price of
property transferred as an incident to the sale of service
after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
the selling price of property transferred as an incident to
the sale of service on or after January 1, 2024 and on or
before December 31, 2028, and (v) 100% of the selling price of
property transferred as an incident to the sale of service
after December 31, 2028. If, at any time, however, the tax
under this Act on sales of gasohol, as defined in the Use Tax
Act, is imposed at the rate of 1.25%, then the tax imposed by
this Act applies to 100% of the proceeds of sales of gasohol
made during that time.
With respect to mid-range ethanol blends, as defined in
Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
applies to (i) 80% of the selling price of property
transferred as an incident to the sale of service on or after
January 1, 2024 and on or before December 31, 2028 and (ii)
100% of the selling price of property transferred as an
incident to the sale of service after December 31, 2028. If, at

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

person arising out of or because of such nontaxable business,
is engaged in the business of selling tangible personal
property at retail to the extent of the value of the tangible
personal property so transferred. If, in such a transaction, a
separate charge is made for the tangible personal property so
transferred, the value of such property, for the purpose of
this Act, shall be the amount so separately charged, but not
less than the cost of such property to the transferor; if no
separate charge is made, the value of such property, for the
purposes of this Act, is the cost to the transferor of such
tangible personal property. Construction contracts for the
improvement of real estate consisting of engineering,
installation, and maintenance of voice, data, video, security,
and all telecommunication systems do not constitute engaging
in a business of selling tangible personal property at retail
within the meaning of this Act if they are sold at one
specified contract price.
A person who holds himself or herself out as being engaged
(or who habitually engages) in selling tangible personal
property at retail is a person engaged in the business of
selling tangible personal property at retail hereunder with
respect to such sales (and not primarily in a service
occupation) notwithstanding the fact that such person designs
and produces such tangible personal property on special order
for the purchaser and in such a way as to render the property
of value only to such purchaser, if such tangible personal

property so produced on special order serves substantially the
same function as stock or standard items of tangible personal
property that are sold at retail.
Persons who engage in the business of transferring
tangible personal property upon the redemption of trading
stamps are engaged in the business of selling such property at
retail and shall be liable for and shall pay the tax imposed by
this Act on the basis of the retail value of the property
transferred upon redemption of such stamps.
"Bulk vending machine" means a vending machine, containing
unsorted confections, nuts, toys, or other items designed
primarily to be used or played with by children which, when a
coin or coins of a denomination not larger than $0.50 are
inserted, are dispensed in equal portions, at random and
without selection by the customer.
"Remote retailer" means a retailer that does not maintain
within this State, directly or by a subsidiary, an office,
distribution house, sales house, warehouse or other place of
business, or any agent or other representative operating
within this State under the authority of the retailer or its
subsidiary, irrespective of whether such place of business or
agent is located here permanently or temporarily or whether
such retailer or subsidiary is licensed to do business in this
State.
"Marketplace" means a physical or electronic place, forum,
platform, application, or other method by which a marketplace

seller sells or offers to sell items.
"Marketplace facilitator" means a person who, pursuant to
an agreement with an unrelated third-party marketplace seller,
directly or indirectly through one or more affiliates
facilitates a retail sale by an unrelated third party
marketplace seller by:
(1) listing or advertising for sale by the marketplace
seller in a marketplace, tangible personal property that
is subject to tax under this Act; and
(2) either directly or indirectly, through agreements
or arrangements with third parties, collecting payment
from the customer and transmitting that payment to the
marketplace seller regardless of whether the marketplace
facilitator receives compensation or other consideration
in exchange for its services.
A person who provides advertising services, including
listing products for sale, is not considered a marketplace
facilitator, so long as the advertising service platform or
forum does not engage, directly or indirectly through one or
more affiliated persons, in the activities described in
paragraph (2) of this definition of "marketplace facilitator".
"Marketplace facilitator" does not include any person
licensed under the Auction License Act. This exemption does
not apply to any person who is an Internet auction listing
service, as defined by the Auction License Act.
"Marketplace seller" means a person that makes sales

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

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

Sales of (1) electricity delivered to customers by wire;
(2) natural or artificial gas that is delivered to customers
through pipes, pipelines, or mains; and (3) water that is
delivered to customers through pipes, pipelines, or mains are
not subject to tax under this Act. The provisions of this
amendatory Act of the 98th General Assembly are declaratory of
existing law as to the meaning and scope of this Act.
(b) Beginning on January 1, 2021, a remote retailer is
engaged in the occupation of selling at retail in Illinois for
purposes of this Act, if:
(1) the cumulative gross receipts from sales of
tangible personal property to purchasers in Illinois are
$100,000 or more; or
(2) the retailer enters into 200 or more separate
transactions for the sale of tangible personal property to
purchasers in Illinois.
Remote retailers that meet or exceed the threshold in
either paragraph (1) or (2) above shall be liable for all
applicable State retailers' and locally imposed retailers'
occupation taxes administered by the Department on all retail
sales to Illinois purchasers.
The remote retailer shall determine on a quarterly basis,
ending on the last day of March, June, September, and
December, whether he or she meets the criteria of either
paragraph (1) or (2) of this subsection for the preceding
12-month period. If the retailer meets the criteria of either

paragraph (1) or (2) for a 12-month period, he or she is
considered a retailer maintaining a place of business in this
State and is required to collect and remit the tax imposed
under this Act and all retailers' occupation tax imposed by
local taxing jurisdictions in Illinois, provided such local
taxes are administered by the Department, and to file all
applicable returns for one year. At the end of that one-year
period, the retailer shall determine whether the retailer met
the criteria of either paragraph (1) or (2) for the preceding
12-month period. If the retailer met the criteria in either
paragraph (1) or (2) for the preceding 12-month period, he or
she is considered a retailer maintaining a place of business
in this State and is required to collect and remit all
applicable State and local retailers' occupation taxes and
file returns for the subsequent year. If, at the end of a
one-year period, a retailer that was required to collect and
remit the tax imposed under this Act determines that he or she
did not meet the criteria in either paragraph (1) or (2) during
the preceding 12-month period, then the retailer shall
subsequently determine on a quarterly basis, ending on the
last day of March, June, September, and December, whether he
or she meets the criteria of either paragraph (1) or (2) for
the preceding 12-month period.
(b-5) For the purposes of this Section, neither the gross
receipts from nor the number of separate transactions for
sales of tangible personal property to purchasers in Illinois

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

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

period, the marketplace facilitator shall determine whether it
met the criteria of either paragraph (1) or (2) for the
preceding 12-month period. If the marketplace facilitator met
the criteria in either paragraph (1) or (2) for the preceding
12-month period, it is considered a retailer maintaining a
place of business in this State and is required to collect and
remit all applicable State and local retailers' occupation
taxes and file returns for the subsequent year. If at the end
of a one-year period a marketplace facilitator that was
required to collect and remit the tax imposed under this Act
determines that he or she did not meet the criteria in either
paragraph (1) or (2) during the preceding 12-month period, the
marketplace facilitator shall subsequently determine on a
quarterly basis, ending on the last day of March, June,
September, and December, whether he or she meets the criteria
of either paragraph (1) or (2) for the preceding 12-month
period.
A marketplace facilitator shall be entitled to any
credits, deductions, or adjustments to the sales price
otherwise provided to the marketplace seller, in addition to
any such adjustments provided directly to the marketplace
facilitator. This Section pertains to, but is not limited to,
adjustments such as discounts, coupons, and rebates. In
addition, a marketplace facilitator shall be entitled to the
retailers' discount provided in Section 3 of the Retailers'
Occupation Tax Act on all marketplace sales, and the

marketplace seller shall not include sales made through a
marketplace facilitator when computing any retailers' discount
on remaining sales. Marketplace facilitators shall report and
remit the applicable State and local retailers' occupation
taxes on sales facilitated for marketplace sellers separately
from any sales or use tax collected on taxable retail sales
made directly by the marketplace facilitator or its
affiliates.
The marketplace facilitator is liable for the remittance
of all applicable State retailers' occupation taxes under this
Act and local retailers' occupation taxes administered by the
Department on sales through the marketplace and is subject to
audit on all such sales. The Department shall not audit
marketplace sellers for their marketplace sales where a
marketplace facilitator remitted the applicable State and
local retailers' occupation taxes unless the marketplace
facilitator seeks relief as a result of incorrect information
provided to the marketplace facilitator by a marketplace
seller as set forth in this Section. The marketplace
facilitator shall not be held liable for tax on any sales made
by a marketplace seller that take place outside of the
marketplace and which are not a part of any agreement between a
marketplace facilitator and a marketplace seller. In addition,
marketplace facilitators shall not be held liable to State and
local governments of Illinois for having charged and remitted
an incorrect amount of State and local retailers' occupation

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

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

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

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

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

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

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

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

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

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

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

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

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

general rate imposed under this Act.
(25-7) Beginning on July 1, 2007, no tax is imposed
under this Act on the sale of an aircraft, as defined in
Section 3 of the Illinois Aeronautics Act, if all of the
following conditions are met:
(1) the aircraft leaves this State within 15 days
after the later of either the issuance of the final
billing for the sale of the aircraft, or the
authorized approval for return to service, completion
of the maintenance record entry, and completion of the
test flight and ground test for inspection, as
required by 14 CFR 91.407;
(2) the aircraft is not based or registered in
this State after the sale of the aircraft; and
(3) the seller retains in his or her books and
records and provides to the Department a signed and
dated certification from the purchaser, on a form
prescribed by the Department, certifying that the
requirements of this item (25-7) are met. The
certificate must also include the name and address of
the purchaser, the address of the location where the
aircraft is to be titled or registered, the address of
the primary physical location of the aircraft, and
other information that the Department may reasonably
require.
For purposes of this item (25-7):

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

on January 1, 2008 (the effective date of Public Act
95-88).
(28) Computers and communications equipment utilized
for any hospital purpose and equipment used in the
diagnosis, analysis, or treatment of hospital patients
sold to a lessor who leases the equipment, under a lease of
one year or longer executed or in effect at the time of the
purchase, to a hospital that has been issued an active tax
exemption identification number by the Department under
Section 1g of this Act.
(29) Personal property sold to a lessor who leases the
property, under a lease of one year or longer executed or
in effect at the time of the purchase, to a governmental
body that has been issued an active tax exemption
identification number by the Department under Section 1g
of this Act.
(30) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on
or before December 31, 2004, personal property that is
donated for disaster relief to be used in a State or
federally declared disaster area in Illinois or bordering
Illinois by a manufacturer or retailer that is registered
in this State to a corporation, society, association,
foundation, or institution that has been issued a sales
tax exemption identification number by the Department that
assists victims of the disaster who reside within the

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

With respect to gasohol, as defined in the Use Tax Act, the
tax imposed by this Act applies to (i) 70% of the proceeds of
sales made on or after January 1, 1990, and before July 1,
2003, (ii) 80% of the proceeds of sales made on or after July
1, 2003 and on or before July 1, 2017, (iii) 100% of the
proceeds of sales made after July 1, 2017 and prior to January
1, 2024, (iv) 90% of the proceeds of sales made on or after
January 1, 2024 and on or before December 31, 2028, and (v)
100% of the proceeds of sales made after December 31, 2028. If,
at any time, however, the tax under this Act on sales of
gasohol, as defined in the Use Tax Act, is imposed at the rate
of 1.25%, then the tax imposed by this Act applies to 100% of
the proceeds of sales of gasohol made during that time.
With respect to mid-range ethanol blends, as defined in
Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
applies to (i) 80% of the proceeds of sales made on or after
January 1, 2024 and on or before December 31, 2028 and (ii)
100% of the proceeds of sales made after December 31, 2028. If,
at any time, however, the tax under this Act on sales of
mid-range ethanol blends is imposed at the rate of 1.25%, then
the tax imposed by this Act applies to 100% of the proceeds of
sales of mid-range ethanol blends made during that time.
With respect to majority blended ethanol fuel, as defined
in the Use Tax Act, the tax imposed by this Act does not apply
to the proceeds of sales made on or after July 1, 2003 and on
or before December 31, 2028 but applies to 100% of the proceeds

of sales made thereafter.
With respect to biodiesel blends, as defined in the Use
Tax Act, with no less than 1% and no more than 10% biodiesel,
the tax imposed by this Act applies to (i) 80% of the proceeds
of sales made on or after July 1, 2003 and on or before
December 31, 2018 and (ii) 100% of the proceeds of sales made
after December 31, 2018 and before January 1, 2024. On and
after January 1, 2024 and on or before December 31, 2030, the
taxation of biodiesel, renewable diesel, and biodiesel blends
shall be as provided in Section 3-5.1 of the Use Tax Act. If,
at any time, however, the tax under this Act on sales of
biodiesel blends, as defined in the Use Tax Act, with no less
than 1% and no more than 10% biodiesel is imposed at the rate
of 1.25%, then the tax imposed by this Act applies to 100% of
the proceeds of sales of biodiesel blends with no less than 1%
and no more than 10% biodiesel made during that time.
With respect to biodiesel, as defined in the Use Tax Act,
and biodiesel blends, as defined in the Use Tax Act, with more
than 10% but no more than 99% biodiesel, the tax imposed by
this Act does not apply to the proceeds of sales made on or
after July 1, 2003 and on or before December 31, 2023. On and
after January 1, 2024 and on or before December 31, 2030, the
taxation of biodiesel, renewable diesel, and biodiesel blends
shall be as provided in Section 3-5.1 of the Use Tax Act.
Until July 1, 2022 and beginning again on July 1, 2023,
with respect to food for human consumption that is to be

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

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

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

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

described in the following paragraphs.
(1) If a purchaser who is present at the retailer's
place of business, having no prior commitment to the
retailer, agrees to purchase and makes payment for
tangible personal property at the retailer's place of
business, then the transaction shall be deemed an
over-the-counter sale occurring at the retailer's same
place of business where the purchaser was present and made
payment for that tangible personal property if the
retailer regularly stocks the purchased tangible personal
property or similar tangible personal property in the
quantity, or similar quantity, for sale at the retailer's
same place of business and then either (i) the purchaser
takes possession of the tangible personal property at the
same place of business or (ii) the retailer delivers or
arranges for the tangible personal property to be
delivered to the purchaser.
(2) If a purchaser, having no prior commitment to the
retailer, agrees to purchase tangible personal property
and makes payment over the phone, in writing, or via the
Internet and takes possession of the tangible personal
property at the retailer's place of business, then the
sale shall be deemed to have occurred at the retailer's
place of business where the purchaser takes possession of
the property if the retailer regularly stocks the item or
similar items in the quantity, or similar quantities,

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

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

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

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

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

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

applicant to engage in business without registering separately
under such other law, ordinance or resolution. In making a
determination as to whether to require a bond or other
security, the Department shall take into consideration whether
the owner, any partner, any manager or member of a limited
liability company, or a corporate officer of the applicant is
or has been the owner, a partner, a manager or member of a
limited liability company, or a corporate officer of another
retailer that is in default for moneys due under this Act or
any other tax or fee Act administered by the Department; and
whether the owner, any partner, any manager or member of a
limited liability company, or a corporate officer of the
applicant is or has been the owner, a partner, a manager or
member of a limited liability company, or a corporate officer
of another retailer whose certificate of registration has been
revoked within the previous 5 years under this Act or any other
tax or fee Act administered by the Department. If a bond or
other security is required, the Department shall fix the
amount of the bond or other security, taking into
consideration the amount of money expected to become due from
the applicant under this Act and under any other State tax law
or municipal or county tax ordinance or resolution under which
the certificate of registration that is issued to the
applicant under this Act will permit the applicant to engage
in business without registering separately under such other
law, ordinance, or resolution. The amount of security required

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

he engages in the business of selling tangible personal
property at retail in this State.
No certificate of registration issued prior to July 1,
2017 to a taxpayer who files returns required by this Act on a
monthly basis or renewed prior to July 1, 2017 by a taxpayer
who files returns required by this Act on a monthly basis shall
be valid after the expiration of 5 years from the date of its
issuance or last renewal. No certificate of registration
issued on or after July 1, 2017 to a taxpayer who files returns
required by this Act on a monthly basis or renewed on or after
July 1, 2017 by a taxpayer who files returns required by this
Act on a monthly basis shall be valid after the expiration of
one year from the date of its issuance or last renewal. The
expiration date of a sub-certificate of registration shall be
that of the certificate of registration to which the
sub-certificate relates. Prior to July 1, 2017, a certificate
of registration shall automatically be renewed, subject to
revocation as provided by this Act, for an additional 5 years
from the date of its expiration unless otherwise notified by
the Department as provided by this paragraph. On and after
July 1, 2017, a certificate of registration shall
automatically be renewed, subject to revocation as provided by
this Act, for an additional one year from the date of its
expiration unless otherwise notified by the Department as
provided by this paragraph.
Where a taxpayer to whom a certificate of registration is

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

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

86-383) shall expire and be subject to the renewal provisions
of this Section on the 5th anniversary of the issuance of the
certificate.
If the person so registered states that he operates other
places of business from which he engages in the business of
selling tangible personal property at retail in this State,
the Department shall furnish him with a sub-certificate of
registration for each such place of business, and the
applicant shall display the appropriate sub-certificate of
registration at each such place of business. All
sub-certificates of registration shall bear the same
registration number as that appearing upon the certificate of
registration to which such sub-certificates relate.
If the applicant will sell tangible personal property at
retail through vending machines, the Department shall furnish
him with a sub-certificate of registration for each such
vending machine, and the applicant shall display the
appropriate sub-certificate of registration on each such
vending machine by attaching the sub-certificate of
registration to a conspicuous part of such vending machine. If
a person who is registered to sell tangible personal property
at retail through vending machines adds an additional vending
machine or additional vending machines to the number of
vending machines he or she uses in his or her business of
selling tangible personal property at retail, he or she shall
notify the Department, on a form prescribed by the Department,

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

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

delinquent or deficient in the paying of any tax under this Act
or under any other State tax law or municipal or county tax
ordinance or resolution under which the certificate of
registration that is issued to the registrant under this Act
will permit the registrant to engage in business without
registering separately under such other law, ordinance or
resolution, at which time that taxpayer shall become subject
to all the financial responsibility requirements of this Act
and, as a condition of being allowed to continue to engage in
the business of selling tangible personal property at retail,
may be required to post bond or other acceptable security with
the Department covering liability which such taxpayer may
thereafter incur. Any taxpayer who fails to pay an admitted or
established liability under this Act may also be required to
post bond or other acceptable security with this Department
guaranteeing the payment of such admitted or established
liability.
No certificate of registration shall be issued to any
person who is in default to the State of Illinois for moneys
due under this Act or under any other State tax law or
municipal or county tax ordinance or resolution under which
the certificate of registration that is issued to the
applicant under this Act will permit the applicant to engage
in business without registering separately under such other
law, ordinance or resolution.
Any person aggrieved by any decision of the Department

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

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

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

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

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

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

9. The signature of the taxpayer; and
10. Such other reasonable information as the
Department may require.
In the case of leases, except as otherwise provided in
this Act, the lessor must remit for each tax return period only
the tax applicable to that part of the selling price actually
received during such tax return period.
On and after January 1, 2018, except for returns required
to be filed prior to January 1, 2023 for motor vehicles,
watercraft, aircraft, and trailers that are required to be
registered with an agency of this State, with respect to
retailers whose annual gross receipts average $20,000 or more,
all returns required to be filed pursuant to this Act shall be
filed electronically. On and after January 1, 2023, with
respect to retailers whose annual gross receipts average
$20,000 or more, all returns required to be filed pursuant to
this Act, including, but not limited to, returns for motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State, shall be filed
electronically. Retailers who demonstrate that they do not
have access to the Internet or demonstrate hardship in filing
electronically may petition the Department to waive the
electronic filing requirement.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be

due on the return shall be deemed assessed.
Each return shall be accompanied by the statement of
prepaid tax issued pursuant to Section 2e for which credit is
claimed.
Prior to October 1, 2003, and on and after September 1,
2004, a retailer may accept a Manufacturer's Purchase Credit
certification from a purchaser in satisfaction of Use Tax as
provided in Section 3-85 of the Use Tax Act if the purchaser
provides the appropriate documentation as required by Section
3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
certification, accepted by a retailer prior to October 1, 2003
and on and after September 1, 2004 as provided in Section 3-85
of the Use Tax Act, may be used by that retailer to satisfy
Retailers' Occupation Tax liability in the amount claimed in
the certification, not to exceed 6.25% of the receipts subject
to tax from a qualifying purchase. A Manufacturer's Purchase
Credit reported on any original or amended return filed under
this Act after October 20, 2003 for reporting periods prior to
September 1, 2004 shall be disallowed. Manufacturer's Purchase
Credit reported on annual returns due on or after January 1,
2005 will be disallowed for periods prior to September 1,
2004. No Manufacturer's Purchase Credit may be used after
September 30, 2003 through August 31, 2004 to satisfy any tax
liability imposed under this Act, including any audit
liability.
Beginning on July 1, 2023 and through December 31, 2032, a

retailer may accept a Sustainable Aviation Fuel Purchase
Credit certification from an air common carrier-purchaser in
satisfaction of Use Tax on aviation fuel as provided in
Section 3-87 of the Use Tax Act if the purchaser provides the
appropriate documentation as required by Section 3-87 of the
Use Tax Act. A Sustainable Aviation Fuel Purchase Credit
certification accepted by a retailer in accordance with this
paragraph may be used by that retailer to satisfy Retailers'
Occupation Tax liability (but not in satisfaction of penalty
or interest) in the amount claimed in the certification, not
to exceed 6.25% of the receipts subject to tax from a sale of
aviation fuel. In addition, for a sale of aviation fuel to
qualify to earn the Sustainable Aviation Fuel Purchase Credit,
retailers must retain in their books and records a
certification from the producer of the aviation fuel that the
aviation fuel sold by the retailer and for which a sustainable
aviation fuel purchase credit was earned meets the definition
of sustainable aviation fuel under Section 3-87 of the Use Tax
Act. The documentation must include detail sufficient for the
Department to determine the number of gallons of sustainable
aviation fuel sold.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each

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

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

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

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

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

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

under this Act, such person may not file each return that is
due as a single return covering all such registered
businesses, but shall file separate returns for each such
registered business.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, except as otherwise provided in this
Section, every retailer selling this kind of tangible personal
property shall file, with the Department, upon a form to be
prescribed and supplied by the Department, a separate return
for each such item of tangible personal property which the
retailer sells, except that if, in the same transaction, (i) a
retailer of aircraft, watercraft, motor vehicles, or trailers
transfers more than one aircraft, watercraft, motor vehicle,
or trailer to another aircraft, watercraft, motor vehicle
retailer, or trailer retailer for the purpose of resale or
(ii) a retailer of aircraft, watercraft, motor vehicles, or
trailers transfers more than one aircraft, watercraft, motor
vehicle, or trailer to a purchaser for use as a qualifying
rolling stock as provided in Section 2-5 of this Act, then that
seller may report the transfer of all aircraft, watercraft,
motor vehicles, or trailers involved in that transaction to
the Department on the same uniform invoice-transaction
reporting return form. For purposes of this Section,
"watercraft" means a Class 2, Class 3, or Class 4 watercraft as
defined in Section 3-2 of the Boat Registration and Safety

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

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

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

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

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

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

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

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

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

calendar quarter period is less than $10,000. However, if a
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $10,000
threshold stated above, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status.
On and after October 1, 2000, once applicable, the requirement
of the making of quarter monthly payments to the Department by
taxpayers having an average monthly tax liability of $20,000
or more as determined in the manner provided above shall
continue until such taxpayer's average monthly liability to
the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the
month of lowest liability) is less than $19,000 or until such
taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $20,000. However, if a
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $20,000
threshold stated above, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status.
The Department shall change such taxpayer's reporting status
unless it finds that such change is seasonal in nature and not

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

previously due as provided in this Section. The Department
shall make reasonable rules and regulations to govern the
quarter monthly payment amount and quarter monthly payment
dates for taxpayers who file on other than a calendar monthly
basis.
The provisions of this paragraph apply before October 1,
2001. Without regard to whether a taxpayer is required to make
quarter monthly payments as specified above, any taxpayer who
is required by Section 2d of this Act to collect and remit
prepaid taxes and has collected prepaid taxes which average in
excess of $25,000 per month during the preceding 2 complete
calendar quarters, shall file a return with the Department as
required by Section 2f and shall make payments to the
Department on or before the 7th, 15th, 22nd and last day of the
month during which such liability is incurred. If the month
during which such tax liability is incurred began prior to
September 1, 1985 (the effective date of Public Act 84-221),
each payment shall be in an amount not less than 22.5% of the
taxpayer's actual liability under Section 2d. If the month
during which such tax liability is incurred begins on or after
January 1, 1986, each payment shall be in an amount equal to
22.5% of the taxpayer's actual liability for the month or
27.5% of the taxpayer's liability for the same calendar month
of the preceding calendar year. If the month during which such
tax liability is incurred begins on or after January 1, 1987,
each payment shall be in an amount equal to 22.5% of the

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

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

the taxpayer to a similar taxpayer under this Act, the Use Tax
Act, the Service Occupation Tax Act, or the Service Use Tax
Act, in accordance with reasonable rules and regulations to be
prescribed by the Department. If no such request is made, the
taxpayer may credit such excess payment against tax liability
subsequently to be remitted to the Department under this Act,
the Use Tax Act, the Service Occupation Tax Act, or the Service
Use Tax Act, in accordance with reasonable rules and
regulations prescribed by the Department. If the Department
subsequently determined that all or any part of the credit
taken was not actually due to the taxpayer, the taxpayer's
2.1% and 1.75% vendor's discount shall be reduced by 2.1% or
1.75% of the difference between the credit taken and that
actually due, and that taxpayer shall be liable for penalties
and interest on such difference.
If a retailer of motor fuel is entitled to a credit under
Section 2d of this Act which exceeds the taxpayer's liability
to the Department under this Act for the month for which the
taxpayer is filing a return, the Department shall issue the
taxpayer a credit memorandum for the excess.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund, a special fund in the
State treasury which is hereby created, the net revenue
realized for the preceding month from the 1% tax imposed under
this Act.
Beginning January 1, 1990, each month the Department shall

pay into the County and Mass Transit District Fund, a special
fund in the State treasury which is hereby created, 4% of the
net revenue realized for the preceding month from the 6.25%
general rate other than aviation fuel sold on or after
December 1, 2019. This exception for aviation fuel only
applies for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the County and Mass Transit District Fund 20% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol. If, in any
month, the tax on sales tax holiday items, as defined in
Section 2-8, is imposed at the rate of 1.25%, then the
Department shall pay 20% of the net revenue realized for that
month from the 1.25% rate on the selling price of sales tax
holiday items into the County and Mass Transit District Fund.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the net revenue
realized for the preceding month from the 6.25% general rate
on the selling price of tangible personal property other than
aviation fuel sold on or after December 1, 2019. This
exception for aviation fuel only applies for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program

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

Beginning July 1, 2011, each month the Department shall
pay into the Clean Air Act Permit Fund 80% of the net revenue
realized for the preceding month from the 6.25% general rate
on the selling price of sorbents used in Illinois in the
process of sorbent injection as used to comply with the
Environmental Protection Act or the federal Clean Air Act, but
the total payment into the Clean Air Act Permit Fund under this
Act and the Use Tax Act shall not exceed $2,000,000 in any
fiscal year.
Beginning July 1, 2013, each month the Department shall
pay into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service Use Tax
Act, and the Service Occupation Tax Act an amount equal to the
average monthly deficit in the Underground Storage Tank Fund
during the prior year, as certified annually by the Illinois
Environmental Protection Agency, but the total payment into
the Underground Storage Tank Fund under this Act, the Use Tax
Act, the Service Use Tax Act, and the Service Occupation Tax
Act shall not exceed $18,000,000 in any State fiscal year. As
used in this paragraph, the "average monthly deficit" shall be
equal to the difference between the average monthly claims for
payment by the fund and the average monthly revenues deposited
into the fund, excluding payments made pursuant to this
paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, the Service

Use Tax Act, the Service Occupation Tax Act, and this Act, each
month the Department shall deposit $500,000 into the State
Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to this Act,
Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
Act, and Section 9 of the Service Occupation Tax Act, such Acts
being hereinafter called the "Tax Acts" and such aggregate of
2.2% or 3.8%, as the case may be, of moneys being hereinafter
called the "Tax Act Amount", and (2) the amount transferred to
the Build Illinois Fund from the State and Local Sales Tax
Reform Fund shall be less than the Annual Specified Amount (as
hereinafter defined), an amount equal to the difference shall
be immediately paid into the Build Illinois Fund from other
moneys received by the Department pursuant to the Tax Acts;
the "Annual Specified Amount" means the amounts specified
below for fiscal years 1986 through 1993:
Fiscal Year Annual Specified Amount
1986 $54,800,000
1987 $76,650,000

1988 $80,480,000
1989 $88,510,000
1990 $115,330,000
1991 $145,470,000
1992 $182,730,000
1993 $206,520,000;
and means the Certified Annual Debt Service Requirement (as
defined in Section 13 of the Build Illinois Bond Act) or the
Tax Act Amount, whichever is greater, for fiscal year 1994 and
each fiscal year thereafter; and further provided, that if on
the last business day of any month the sum of (1) the Tax Act
Amount required to be deposited into the Build Illinois Bond
Account in the Build Illinois Fund during such month and (2)
the amount transferred to the Build Illinois Fund from the
State and Local Sales Tax Reform Fund shall have been less than
1/12 of the Annual Specified Amount, an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and, further provided, that in no event shall the
payments required under the preceding proviso result in
aggregate payments into the Build Illinois Fund pursuant to
this clause (b) for any fiscal year in excess of the greater of
(i) the Tax Act Amount or (ii) the Annual Specified Amount for
such fiscal year. The amounts payable into the Build Illinois
Fund under clause (b) of the first sentence in this paragraph
shall be payable only until such time as the aggregate amount

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

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

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

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

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

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

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

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

Government Tax Fund, the Build Illinois Fund, the McCormick
Place Expansion Project Fund, the Illinois Tax Increment Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 32% of the net
revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning July 1, 2023 and until July 1, 2024,
subject to the payment of amounts into the County and Mass
Transit District Fund, the Local Government Tax Fund, the
Build Illinois Fund, the McCormick Place Expansion Project
Fund, the Illinois Tax Increment Fund, and the Tax Compliance
and Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 48% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning July 1,
2024 and until July 1, 2025, subject to the payment of amounts
into the County and Mass Transit District Fund, the Local
Government Tax Fund, the Build Illinois Fund, the McCormick
Place Expansion Project Fund, the Illinois Tax Increment Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 64% of the net
revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning on July 1, 2025, subject to the payment of
amounts into the County and Mass Transit District Fund, the
Local Government Tax Fund, the Build Illinois Fund, the

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

attach to his annual return a schedule showing a
reconciliation of the 2 amounts and the reasons for the
difference. The retailer's annual return to the Department
shall also disclose the cost of goods sold by the retailer
during the year covered by such return, opening and closing
inventories of such goods for such year, costs of goods used
from stock or taken from stock and given away by the retailer
during such year, payroll information of the retailer's
business during such year and any additional reasonable
information which the Department deems would be helpful in
determining the accuracy of the monthly, quarterly, or annual
returns filed by such retailer as provided for in this
Section.
If the annual information return required by this Section
is not filed when and as required, the taxpayer shall be liable
as follows:
(i) Until January 1, 1994, the taxpayer shall be
liable for a penalty equal to 1/6 of 1% of the tax due from
such taxpayer under this Act during the period to be
covered by the annual return for each month or fraction of
a month until such return is filed as required, the
penalty to be assessed and collected in the same manner as
any other penalty provided for in this Act.
(ii) On and after January 1, 1994, the taxpayer shall
be liable for a penalty as described in Section 3-4 of the
Uniform Penalty and Interest Act.

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

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

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

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

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

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

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

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

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

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

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

amount to be paid to each political subdivision shall be the
amount (not including credit memoranda and not including taxes
and penalties collected on aviation fuel sold on or after
December 1, 2019) collected under this Section during the
second preceding calendar month by the Department plus an
amount the Department determines is necessary to offset any
amounts that were erroneously paid to a different taxing body,
and not including an amount equal to the amount of refunds made
during the second preceding calendar month by the Department,
less 3% of that amount, which shall be deposited into the Tax
Compliance and Administration Fund and shall be used by the
Department, subject to appropriation, to cover the costs of
the Department in administering and enforcing the provisions
of this Section, on behalf of such political subdivision, and
not including any amount that the Department determines is
necessary to offset any amounts that were payable to a
different taxing body but were erroneously paid to the
political subdivision. Within 10 days after receipt by the
Comptroller of the disbursement certification to the political
subdivisions provided for in this Section to be given to the
Comptroller by the Department, the Comptroller shall cause the
orders to be drawn for the respective amounts in accordance
with the directions contained in the certification. The
proceeds of the tax paid to political subdivisions under this
Section shall be deposited into either (i) the STAR Bonds Tax
Allocation Fund by the political subdivision if the political

subdivision has designated them as pledged STAR revenues by
resolution or ordinance or (ii) the political subdivision's
general corporate fund if the political subdivision has not
designated them as pledged STAR revenues.
An ordinance or resolution imposing or discontinuing the
tax under this Section or effecting a change in the rate
thereof shall either (i) be adopted and a certified copy
thereof filed with the Department on or before the first day of
April, whereupon the Department, if all other requirements of
this Section are met, shall proceed to administer and enforce
this Section as of the first day of July next following the
adoption and filing; or (ii) be adopted and a certified copy
thereof filed with the Department on or before the first day of
October, whereupon, if all other requirements of this Section
are met, the Department shall proceed to administer and
enforce this Section as of the first day of January next
following the adoption and filing.
The Department of Revenue shall not administer or enforce
an ordinance imposing, discontinuing, or changing the rate of
the tax under this Section until the political subdivision
also provides, in the manner prescribed by the Department, the
boundaries of the STAR bond district and each address in the
STAR bond district in such a way that the Department can
determine by its address whether a business is located in the
STAR bond district. The political subdivision must provide
this boundary and address information to the Department on or

before April 1 for administration and enforcement of the tax
under this Section by the Department beginning on the
following July 1 and on or before October 1 for administration
and enforcement of the tax under this Section by the
Department beginning on the following January 1. The
Department of Revenue shall not administer or enforce any
change made to the boundaries of a STAR bond district or any
address change, addition, or deletion until the political
subdivision reports the boundary change or address change,
addition, or deletion to the Department in the manner
prescribed by the Department. The political subdivision must
provide this boundary change or address change, addition, or
deletion information to the Department on or before April 1
for administration and enforcement by the Department of the
change, addition, or deletion beginning on the following July
1 and on or before October 1 for administration and
enforcement by the Department of the change, addition, or
deletion beginning on the following January 1. The retailers
in the STAR bond district shall be responsible for charging
the tax imposed under this Section. If a retailer is
incorrectly included or excluded from the list of those
required to collect the tax under this Section, both the
Department of Revenue and the retailer shall be held harmless
if they reasonably relied on information provided by the
political subdivision.
A political subdivision that imposes the tax under this

Section must submit to the Department of Revenue any other
information as the Department may require that is necessary
for the administration and enforcement of the tax.
When certifying the amount of a monthly disbursement to a
political subdivision under this Section, the Department shall
increase or decrease the amount by an amount necessary to
offset any misallocation of previous disbursements. The offset
amount shall be the amount erroneously disbursed within the
previous 6 months from the time a misallocation is discovered.
Nothing in this Section shall be construed to authorize
the political subdivision to impose a tax upon the privilege
of engaging in any business which under the Constitution of
the United States may not be made the subject of taxation by
this State.
(e) When STAR bond project costs, including, without
limitation, all political subdivision obligations financing
STAR bond project costs, have been paid, any surplus funds
then remaining in the STAR Bonds Tax Allocation Fund shall be
distributed to the treasurer of the political subdivision for
deposit into the political subdivision's general corporate
fund. Upon payment of all STAR bond project costs and
retirement of obligations, but in no event later than the
maximum maturity date of the last of the STAR bonds issued in
the STAR bond district, the political subdivision shall adopt
an ordinance immediately rescinding the taxes imposed pursuant
to this Section and file a certified copy of the ordinance with

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

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

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

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

officio, as trustee, for deposit into the Local Government
Aviation Trust Fund. The Department shall only pay moneys into
the Local Government Aviation Trust Fund under this Section
for so long as the revenue use requirements of 49 U.S.C.
47107(b) and 49 U.S.C. 47133 are binding on the county.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for
sales within a STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named counties, the
counties to be those from which retailers have paid taxes or
penalties hereunder to the Department during the second
preceding calendar month. The amount to be paid to each county
shall be the amount (not including credit memoranda and not
including taxes and penalties collected on aviation fuel sold
on or after December 1, 2019) collected hereunder during the
second preceding calendar month by the Department plus an
amount the Department determines is necessary to offset any
amounts that were erroneously paid to a different taxing body,

and not including an amount equal to the amount of refunds made
during the second preceding calendar month by the Department
on behalf of such county, and not including any amount which
the Department determines is necessary to offset any amounts
which were payable to a different taxing body but were
erroneously paid to the county, and not including any amounts
that are transferred to the STAR Bonds Revenue Fund, less 1.5%
of the remainder, which the Department shall transfer into the
Tax Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the counties, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt, by the
Comptroller, of the disbursement certification to the counties
and the Tax Compliance and Administration Fund provided for in
this Section to be given to the Comptroller by the Department,
the Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with the directions contained
in the certification.
In addition to the disbursement required by the preceding
paragraph, an allocation shall be made in March of each year to
each county that received more than $500,000 in disbursements
under the preceding paragraph in the preceding calendar year.
The allocation shall be in an amount equal to the average
monthly distribution made to each such county under the
preceding paragraph during the preceding calendar year

(excluding the 2 months of highest receipts). The distribution
made in March of each year subsequent to the year in which an
allocation was made pursuant to this paragraph and the
preceding paragraph shall be reduced by the amount allocated
and disbursed under this paragraph in the preceding calendar
year. The Department shall prepare and certify to the
Comptroller for disbursement the allocations made in
accordance with this paragraph.
For the purpose of determining the local governmental unit
whose tax is applicable, a retail sale by a producer of coal or
other mineral mined in Illinois is a sale at retail at the
place where the coal or other mineral mined in Illinois is
extracted from the earth. This paragraph does not apply to
coal or other mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the United States Constitution as a sale
in interstate or foreign commerce.
Nothing in this Section shall be construed to authorize a
county to impose a tax upon the privilege of engaging in any
business which under the Constitution of the United States may
not be made the subject of taxation by this State.
An ordinance or resolution imposing or discontinuing a tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of June, whereupon the Department
shall proceed to administer and enforce this Section as of the

first day of September next following such adoption and
filing. Beginning January 1, 1992, an ordinance or resolution
imposing or discontinuing the tax hereunder or effecting a
change in the rate thereof shall be adopted and a certified
copy thereof filed with the Department on or before the first
day of July, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of
October next following such adoption and filing. Beginning
January 1, 1993, an ordinance or resolution imposing or
discontinuing the tax hereunder or effecting a change in the
rate thereof shall be adopted and a certified copy thereof
filed with the Department on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce this Section as of the first day of January next
following such adoption and filing. Beginning April 1, 1998,
an ordinance or resolution imposing or discontinuing the tax
hereunder or effecting a change in the rate thereof shall
either (i) be adopted and a certified copy thereof filed with
the Department on or before the first day of April, whereupon
the Department shall proceed to administer and enforce this
Section as of the first day of July next following the adoption
and filing; or (ii) be adopted and a certified copy thereof
filed with the Department on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce this Section as of the first day of January next
following the adoption and filing.

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

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

"To pay for public safety purposes, shall (name of
county) be authorized to impose an increase on its share
of local sales taxes by (insert rate)?"
As additional information on the ballot below the
question shall appear the following:
"This would mean that a consumer would pay an
additional (insert amount) in sales tax for every $100 of
tangible personal property bought at retail."
The county board may also opt to establish a sunset
provision at which time the additional sales tax would
cease being collected, if not terminated earlier by a vote
of the county board. If the county board votes to include a
sunset provision, the proposition for public safety
purposes shall be in substantially the following form:
"To pay for public safety purposes, shall (name of
county) be authorized to impose an increase on its share
of local sales taxes by (insert rate) for a period not to
exceed (insert number of years)?"
As additional information on the ballot below the
question shall appear the following:
"This would mean that a consumer would pay an
additional (insert amount) in sales tax for every $100 of
tangible personal property bought at retail. If imposed,
the additional tax would cease being collected at the end
of (insert number of years), if not terminated earlier by
a vote of the county board."

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

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

"To pay for public facilities purposes, shall (name of
county) be authorized to impose an increase on its share
of local sales taxes by (insert rate)?"
As additional information on the ballot below the
question shall appear the following:
"This would mean that a consumer would pay an
additional (insert amount) in sales tax for every $100 of
tangible personal property bought at retail."
The county board may also opt to establish a sunset
provision at which time the additional sales tax would
cease being collected, if not terminated earlier by a vote
of the county board. If the county board votes to include a
sunset provision, the proposition for public facilities
purposes shall be in substantially the following form:
"To pay for public facilities purposes, shall (name of
county) be authorized to impose an increase on its share
of local sales taxes by (insert rate) for a period not to
exceed (insert number of years)?"
As additional information on the ballot below the
question shall appear the following:
"This would mean that a consumer would pay an
additional (insert amount) in sales tax for every $100 of
tangible personal property bought at retail. If imposed,
the additional tax would cease being collected at the end
of (insert number of years), if not terminated earlier by
a vote of the county board."

For purposes of this Section, "public facilities
purposes" means the acquisition, development,
construction, reconstruction, rehabilitation,
improvement, financing, architectural planning, and
installation of capital facilities consisting of
buildings, structures, and durable equipment and for the
acquisition and improvement of real property and interest
in real property required, or expected to be required, in
connection with the public facilities, for use by the
county for the furnishing of governmental services to its
citizens, including, but not limited to, museums and
nursing homes.
The votes shall be recorded as "Yes" or "No".
(4) The proposition for mental health purposes shall
be in substantially the following form:
"To pay for mental health purposes, shall (name of
county) be authorized to impose an increase on its share
of local sales taxes by (insert rate)?"
As additional information on the ballot below the
question shall appear the following:
"This would mean that a consumer would pay an
additional (insert amount) in sales tax for every $100 of
tangible personal property bought at retail."
The county board may also opt to establish a sunset
provision at which time the additional sales tax would
cease being collected, if not terminated earlier by a vote

of the county board. If the county board votes to include a
sunset provision, the proposition for public facilities
purposes shall be in substantially the following form:
"To pay for mental health purposes, shall (name of
county) be authorized to impose an increase on its share
of local sales taxes by (insert rate) for a period not to
exceed (insert number of years)?"
As additional information on the ballot below the
question shall appear the following:
"This would mean that a consumer would pay an
additional (insert amount) in sales tax for every $100 of
tangible personal property bought at retail. If imposed,
the additional tax would cease being collected at the end
of (insert number of years), if not terminated earlier by
a vote of the county board."
The votes shall be recorded as "Yes" or "No".
(5) The proposition for substance abuse purposes shall
be in substantially the following form:
"To pay for substance abuse purposes, shall (name of
county) be authorized to impose an increase on its share
of local sales taxes by (insert rate)?"
As additional information on the ballot below the
question shall appear the following:
"This would mean that a consumer would pay an
additional (insert amount) in sales tax for every $100 of
tangible personal property bought at retail."

The county board may also opt to establish a sunset
provision at which time the additional sales tax would
cease being collected, if not terminated earlier by a vote
of the county board. If the county board votes to include a
sunset provision, the proposition for public facilities
purposes shall be in substantially the following form:
"To pay for substance abuse purposes, shall (name of
county) be authorized to impose an increase on its share
of local sales taxes by (insert rate) for a period not to
exceed (insert number of years)?"
As additional information on the ballot below the
question shall appear the following:
"This would mean that a consumer would pay an
additional (insert amount) in sales tax for every $100 of
tangible personal property bought at retail. If imposed,
the additional tax would cease being collected at the end
of (insert number of years), if not terminated earlier by
a vote of the county board."
The votes shall be recorded as "Yes" or "No".
If a majority of the electors voting on the proposition
vote in favor of it, the county may impose the tax. A county
may not submit more than one proposition authorized by this
Section to the electors at any one time.
This additional tax may not be imposed on tangible
personal property taxed at the 1% rate under the Retailers'
Occupation Tax Act (or at the 0% rate imposed under this

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

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

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

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

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

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

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

calendar month by the Department plus an amount the Department
determines is necessary to offset any amounts that were
erroneously paid to a different taxing body, and not including
(i) an amount equal to the amount of refunds made during the
second preceding calendar month by the Department on behalf of
the county, (ii) any amount that the Department determines is
necessary to offset any amounts that were payable to a
different taxing body but were erroneously paid to the county,
(iii) any amounts that are transferred to the STAR Bonds
Revenue Fund, and (iv) 1.5% of the remainder, which shall be
transferred into the Tax Compliance and Administration Fund.
The Department, at the time of each monthly disbursement to
the counties, shall prepare and certify to the State
Comptroller the amount to be transferred into the Tax
Compliance and Administration Fund under this subsection.
Within 10 days after receipt by the Comptroller of the
disbursement certification to the counties and the Tax
Compliance and Administration Fund provided for in this
Section to be given to the Comptroller by the Department, the
Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with directions contained in
the certification.
In addition to the disbursement required by the preceding
paragraph, an allocation shall be made in March of each year to
each county that received more than $500,000 in disbursements
under the preceding paragraph in the preceding calendar year.

The allocation shall be in an amount equal to the average
monthly distribution made to each such county under the
preceding paragraph during the preceding calendar year
(excluding the 2 months of highest receipts). The distribution
made in March of each year subsequent to the year in which an
allocation was made pursuant to this paragraph and the
preceding paragraph shall be reduced by the amount allocated
and disbursed under this paragraph in the preceding calendar
year. The Department shall prepare and certify to the
Comptroller for disbursement the allocations made in
accordance with this paragraph.
(d) For the purpose of determining the local governmental
unit whose tax is applicable, a retail sale by a producer of
coal or another mineral mined in Illinois is a sale at retail
at the place where the coal or other mineral mined in Illinois
is extracted from the earth. This paragraph does not apply to
coal or another mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the United States Constitution as a sale
in interstate or foreign commerce.
(e) Nothing in this Section shall be construed to
authorize a county to impose a tax upon the privilege of
engaging in any business that under the Constitution of the
United States may not be made the subject of taxation by this
State.
(e-5) If a county imposes a tax under this Section, the

county board may, by ordinance, discontinue or lower the rate
of the tax. If the county board lowers the tax rate or
discontinues the tax, a referendum must be held in accordance
with subsection (a) of this Section in order to increase the
rate of the tax or to reimpose the discontinued tax.
(f) Beginning April 1, 1998 and through December 31, 2013,
the results of any election authorizing a proposition to
impose a tax under this Section or effecting a change in the
rate of tax, or any ordinance lowering the rate or
discontinuing the tax, shall be certified by the county clerk
and filed with the Illinois Department of Revenue either (i)
on or before the first day of April, whereupon the Department
shall proceed to administer and enforce the tax as of the first
day of July next following the filing; or (ii) on or before the
first day of October, whereupon the Department shall proceed
to administer and enforce the tax as of the first day of
January next following the filing.
Beginning January 1, 2014, the results of any election
authorizing a proposition to impose a tax under this Section
or effecting an increase in the rate of tax, along with the
ordinance adopted to impose the tax or increase the rate of the
tax, or any ordinance adopted to lower the rate or discontinue
the tax, shall be certified by the county clerk and filed with
the Illinois Department of Revenue either (i) on or before the
first day of May, whereupon the Department shall proceed to
administer and enforce the tax as of the first day of July next

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

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

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

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

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

collect under the Use Tax Act, pursuant to any bracketed
schedules set forth by the Department.
(b) If a tax has been imposed under subsection (a), then a
service occupation tax must also be imposed at the same rate
upon all persons engaged, in the county, in the business of
making sales of service, who, as an incident to making those
sales of service, transfer tangible personal property within
the county as an incident to a sale of service.
This tax may not be imposed on tangible personal property
taxed at the 1% rate under the Service Occupation Tax Act (or
at the 0% rate imposed under Public Act 102-700). Beginning
December 1, 2019 and through December 31, 2020, this tax is not
imposed on sales of aviation fuel unless the tax revenue is
expended for airport-related purposes. If the county does not
have an airport-related purpose to which it dedicates aviation
fuel tax revenue, then aviation fuel is excluded from the tax.
The county must comply with the certification requirements for
airport-related purposes under Section 2-22 of the Retailers'
Occupation Tax Act. For purposes of this Section,
"airport-related purposes" has the meaning ascribed in Section
6z-20.2 of the State Finance Act. Beginning January 1, 2021,
this tax is not imposed on sales of aviation fuel for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the county.
The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be

collected and enforced by the Department and deposited into a
special fund created for that purpose. The Department has full
power to administer and enforce this subsection, to collect
all taxes and penalties due under this subsection, to dispose
of taxes and penalties so collected in the manner provided in
this subsection, and to determine all rights to credit
memoranda arising on account of the erroneous payment of a tax
or penalty under this subsection.
In the administration of and compliance with this
subsection, the Department and persons who are subject to this
subsection shall (i) have the same rights, remedies,
privileges, immunities, powers and duties, (ii) be subject to
the same conditions, restrictions, limitations, penalties and
definition of terms, and (iii) employ the same modes of
procedure as are set forth in Sections 2 (except that that
reference to State in the definition of supplier maintaining a
place of business in this State means the county), 2a through
2d, 3 through 3-50 (in respect to all provisions contained in
those Sections other than the State rate of tax), 4 (except
that the reference to the State shall be to the county), 5, 7,
8 (except that the jurisdiction to which the tax is a debt to
the extent indicated in that Section 8 is the county), 9
(except as to the disposition of taxes and penalties
collected, and except that the retailer's discount is not
allowed for taxes paid on aviation fuel that are subject to the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.

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

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

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

(name of county) school districts be authorized to use
revenues from the tax commonly referred to as the
school facility sales tax that is currently imposed in
(name of county) at a rate of (insert rate) for school
resource officers and mental health professionals?
(2) If the referendum is to increase the rate of a tax
currently imposed exclusively for school facility purposes
at less than 1% and dedicate the additional revenues for
school resource officers and mental health professionals,
the question shall be in substantially the following form:
Shall the tax commonly referred to as the school
facility sales tax that is currently imposed in (name
of county) at the rate of (insert rate) be increased to
a rate of (insert rate) with the additional revenues
used exclusively for school resource officers and
mental health professionals?
(3) If the referendum is to impose a tax in a county
that has not previously imposed a tax under this Section
exclusively for school facility purposes, the question
shall be in substantially the following form:
Shall a retailers' occupation tax and a service
occupation tax (commonly referred to as a sales tax)
be imposed in (name of county) at a rate of (insert
rate) to be used exclusively for school facility
purposes?
(4) If the referendum is to impose a tax in a county

that has not previously imposed a tax under this Section
exclusively for school resource officers and mental health
professionals, the question shall be in substantially the
following form:
Shall a retailers' occupation tax and a service
occupation tax (commonly referred to as a sales tax)
be imposed in (name of county) at a rate of (insert
rate) to be used exclusively for school resource
officers and mental health professionals?
(5) If the referendum is to impose a tax in a county
that has not previously imposed a tax under this Section
exclusively for school facility purposes, school resource
officers, and mental health professionals, the question
shall be in substantially the following form:
Shall a retailers' occupation tax and a service
occupation tax (commonly referred to as a sales tax)
be imposed in (name of county) at a rate of (insert
rate) to be used exclusively for school facility
purposes, school resource officers, and mental health
professionals?
The election authority must record the votes as "Yes" or
"No".
If a majority of the electors voting on the question vote
in the affirmative, then the tax shall be imposed at the rate
set forth in the question.
For the purposes of this subsection (c), "enrollment"

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

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

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

a tax to be imposed upon the privilege of engaging in any
business that under the Constitution of the United States may
not be made the subject of taxation by this State.
(g) If a county board imposes a tax under this Section
pursuant to a referendum held before August 23, 2011 (the
effective date of Public Act 97-542) at a rate below the rate
set forth in the question approved by a majority of electors of
that county voting on the question as provided in subsection
(c), then the county board may, by ordinance, increase the
rate of the tax up to the rate set forth in the question
approved by a majority of electors of that county voting on the
question as provided in subsection (c). If a county board
imposes a tax under this Section pursuant to a referendum held
before August 23, 2011 (the effective date of Public Act
97-542), then the board may, by ordinance, discontinue or
reduce the rate of the tax. If a tax is imposed under this
Section pursuant to a referendum held on or after August 23,
2011 (the effective date of Public Act 97-542) and before
August 23, 2019 (the effective date of Public Act 101-455),
then the county board may reduce or discontinue the tax, but
only in accordance with subsection (h-5) of this Section. If a
tax is imposed under this Section pursuant to a referendum
held on or after August 23, 2019 (the effective date of Public
Act 101-455), then the county board may reduce or discontinue
the tax, but only in accordance with subsection (h-10). If,
however, a school board issues bonds that are secured by the

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

Section must be certified by the election authority, and any
ordinance that increases or lowers the rate or discontinues
the tax must be certified by the county clerk and, in each
case, filed with the Illinois Department of Revenue either (i)
on or before the first day of May, whereupon the Department
shall proceed to administer and enforce the tax or change in
the rate as of the first day of July next following the filing;
or (ii) on or before the first day of October, whereupon the
Department shall proceed to administer and enforce the tax or
change in the rate as of the first day of January next
following the filing.
(h) For purposes of this Section, "school facility
purposes" means (i) the acquisition, development,
construction, reconstruction, rehabilitation, improvement,
financing, architectural planning, and installation of capital
facilities consisting of buildings, structures, and durable
equipment and for the acquisition and improvement of real
property and interest in real property required, or expected
to be required, in connection with the capital facilities and
(ii) the payment of bonds or other obligations heretofore or
hereafter issued, including bonds or other obligations
heretofore or hereafter issued to refund or to continue to
refund bonds or other obligations issued, for school facility
purposes, provided that the taxes levied to pay those bonds
are abated by the amount of the taxes imposed under this
Section that are used to pay those bonds. "School facility

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

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

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

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

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

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

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

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

Comptroller for disbursement the allocations made in
accordance with this paragraph.
Nothing in this Section shall be construed to authorize a
county to impose a tax upon the privilege of engaging in any
business which under the Constitution of the United States may
not be made the subject of taxation by this State.
An ordinance or resolution imposing or discontinuing a tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of June, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of September next following such adoption and
filing. Beginning January 1, 1992, an ordinance or resolution
imposing or discontinuing the tax hereunder or effecting a
change in the rate thereof shall be adopted and a certified
copy thereof filed with the Department on or before the first
day of July, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of
October next following such adoption and filing. Beginning
January 1, 1993, an ordinance or resolution imposing or
discontinuing the tax hereunder or effecting a change in the
rate thereof shall be adopted and a certified copy thereof
filed with the Department on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce this Section as of the first day of January next
following such adoption and filing. Beginning April 1, 1998,

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

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

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

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

For the purpose of determining whether a tax authorized
under this Section is applicable, a retail sale, by a producer
of coal or another mineral mined in Illinois, is a sale at
retail at the place where the coal or other mineral mined in
Illinois is extracted from the earth. This paragraph does not
apply to coal or another mineral when it is delivered or
shipped by the seller to the purchaser at a point outside
Illinois so that the sale is exempt under the federal
Constitution as a sale in interstate or foreign commerce.
Nothing in this Section shall be construed to authorize
the county to impose a tax upon the privilege of engaging in
any business that under the Constitution of the United States
may not be made the subject of taxation by this State.
(c) If a tax has been imposed under subsection (b), a
service occupation tax shall also be imposed at the same rate
upon all persons engaged, in the county, in the business of
making sales of service, who, as an incident to making those
sales of service, transfer tangible personal property within
the county as an incident to a sale of service. This additional
tax may not be imposed on tangible personal property taxed at
the 1% rate under the Service Occupation Tax Act. Beginning
December 1, 2019, this tax is not imposed on sales of aviation
fuel unless the tax revenue is expended for airport-related
purposes. If the county does not have an airport-related
purpose to which it dedicates aviation fuel tax revenue, then
aviation fuel is excluded from the tax. The county must comply

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

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

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

or registration purposes is given as being in the county. The
tax shall be collected by the Department of Revenue for the
county. The tax must be paid to the State, or an exemption
determination must be obtained from the Department of Revenue,
before the title or certificate of registration for the
property may be issued. The tax or proof of exemption may be
transmitted to the Department by way of the State agency with
which, or the State officer with whom, the tangible personal
property must be titled or registered if the Department and
the State agency or State officer determine that this
procedure will expedite the processing of applications for
title or registration.
The Department has full power to administer and enforce
this paragraph; to collect all taxes, penalties, and interest
due under this Section; to dispose of taxes, penalties, and
interest so collected in the manner provided in this Section;
and to determine all rights to credit memoranda or refunds
arising on account of the erroneous payment of tax, penalty,
or interest under this Section. In the administration of, and
compliance with, this subsection, the Department and persons
who are subject to this paragraph shall (i) have the same
rights, remedies, privileges, immunities, powers, and duties,
(ii) be subject to the same conditions, restrictions,
limitations, penalties, exclusions, exemptions, and
definitions of terms, and (iii) employ the same modes of
procedure as are prescribed in Sections 2 (except the

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

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

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

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

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

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

tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax which sellers
are required to collect under the Use Tax Act, pursuant to such
bracket schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the home rule municipal retailers' occupation
tax fund or the Local Government Aviation Trust Fund, as
appropriate.
Except as otherwise provided in this paragraph, the
Department shall immediately pay over to the State Treasurer,
ex officio, as trustee, all taxes and penalties collected
hereunder for deposit into the Home Rule Municipal Retailers'
Occupation Tax Fund. Taxes and penalties collected on aviation
fuel sold on or after December 1, 2019, shall be immediately
paid over by the Department to the State Treasurer, ex
officio, as trustee, for deposit into the Local Government
Aviation Trust Fund. The Department shall only pay moneys into
the Local Government Aviation Trust Fund under this Section
for so long as the revenue use requirements of 49 U.S.C.
47107(b) and 49 U.S.C. 47133 are binding on the State.
As soon as possible after the first day of each month,

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

to the municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund, less 1.5% of the
remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt by the
Comptroller of the disbursement certification to the
municipalities and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in the certification.
In addition to the disbursement required by the preceding
paragraph and in order to mitigate delays caused by
distribution procedures, an allocation shall, if requested, be
made within 10 days after January 14, 1991, and in November of
1991 and each year thereafter, to each municipality that
received more than $500,000 during the preceding fiscal year,
(July 1 through June 30) whether collected by the municipality
or disbursed by the Department as required by this Section.
Within 10 days after January 14, 1991, participating
municipalities shall notify the Department in writing of their
intent to participate. In addition, for the initial
distribution, participating municipalities shall certify to

the Department the amounts collected by the municipality for
each month under its home rule occupation and service
occupation tax during the period July 1, 1989 through June 30,
1990. The allocation within 10 days after January 14, 1991,
shall be in an amount equal to the monthly average of these
amounts, excluding the 2 months of highest receipts. The
monthly average for the period of July 1, 1990 through June 30,
1991 will be determined as follows: the amounts collected by
the municipality under its home rule occupation and service
occupation tax during the period of July 1, 1990 through
September 30, 1990, plus amounts collected by the Department
and paid to such municipality through June 30, 1991, excluding
the 2 months of highest receipts. The monthly average for each
subsequent period of July 1 through June 30 shall be an amount
equal to the monthly distribution made to each such
municipality under the preceding paragraph during this period,
excluding the 2 months of highest receipts. The distribution
made in November 1991 and each year thereafter under this
paragraph and the preceding paragraph shall be reduced by the
amount allocated and disbursed under this paragraph in the
preceding period of July 1 through June 30. The Department
shall prepare and certify to the Comptroller for disbursement
the allocations made in accordance with this paragraph.
For the purpose of determining the local governmental unit
whose tax is applicable, a retail sale by a producer of coal or
other mineral mined in Illinois is a sale at retail at the

place where the coal or other mineral mined in Illinois is
extracted from the earth. This paragraph does not apply to
coal or other mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the United States Constitution as a sale
in interstate or foreign commerce.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the Constitution of the United States
may not be made the subject of taxation by this State.
An ordinance or resolution imposing or discontinuing a tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of June, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of September next following the adoption and filing.
Beginning January 1, 1992, an ordinance or resolution imposing
or discontinuing the tax hereunder or effecting a change in
the rate thereof shall be adopted and a certified copy thereof
filed with the Department on or before the first day of July,
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of October next
following such adoption and filing. Beginning January 1, 1993,
an ordinance or resolution imposing or discontinuing the tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department

on or before the first day of October, whereupon the
Department shall proceed to administer and enforce this
Section as of the first day of January next following the
adoption and filing. However, a municipality located in a
county with a population in excess of 3,000,000 that elected
to become a home rule unit at the general primary election in
1994 may adopt an ordinance or resolution imposing the tax
under this Section and file a certified copy of the ordinance
or resolution with the Department on or before July 1, 1994.
The Department shall then proceed to administer and enforce
this Section as of October 1, 1994. Beginning April 1, 1998, an
ordinance or resolution imposing or discontinuing the tax
hereunder or effecting a change in the rate thereof shall
either (i) be adopted and a certified copy thereof filed with
the Department on or before the first day of April, whereupon
the Department shall proceed to administer and enforce this
Section as of the first day of July next following the adoption
and filing; or (ii) be adopted and a certified copy thereof
filed with the Department on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce this Section as of the first day of January next
following the adoption and filing.
When certifying the amount of a monthly disbursement to a
municipality under this Section, the Department shall increase
or decrease the amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount

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

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

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

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

such tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax which sellers
are required to collect under the Use Tax Act, pursuant to such
bracket schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in such
notification from the Department. Such refund shall be paid by
the State Treasurer out of the non-home rule municipal
retailers' occupation tax fund or the Local Government
Aviation Trust Fund, as appropriate.
Except as otherwise provided, the Department shall
forthwith pay over to the State Treasurer, ex officio, as
trustee, all taxes and penalties collected hereunder for
deposit into the Non-Home Rule Municipal Retailers' Occupation
Tax Fund. Taxes and penalties collected on aviation fuel sold
on or after December 1, 2019, shall be immediately paid over by
the Department to the State Treasurer, ex officio, as trustee,
for deposit into the Local Government Aviation Trust Fund. The
Department shall only pay moneys into the Local Government
Aviation Trust Fund under this Section for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the municipality.
As soon as possible after the first day of each month,

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

paid to the municipality, and not including any amounts that
are transferred to the STAR Bonds Revenue Fund, less 1.5% of
the remainder, which the Department shall transfer into the
Tax Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt, by the
Comptroller, of the disbursement certification to the
municipalities and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in such certification.
For the purpose of determining the local governmental unit
whose tax is applicable, a retail sale, by a producer of coal
or other mineral mined in Illinois, is a sale at retail at the
place where the coal or other mineral mined in Illinois is
extracted from the earth. This paragraph does not apply to
coal or other mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the Federal Constitution as a sale in
interstate or foreign commerce.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the constitution of the United States

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

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

imposed by a municipality pursuant to this Section and all
civil penalties that may be assessed as an incident thereof
shall be collected and enforced by the State Department of
Revenue. The certificate of registration which is issued by
the Department to a retailer under the Retailers' Occupation
Tax Act or under the Service Occupation Tax Act shall permit
such registrant to engage in a business which is taxable under
any ordinance or resolution enacted pursuant to this Section
without registering separately with the Department under such
ordinance or resolution or under this Section. The Department
shall have full power to administer and enforce this Section;
to collect all taxes and penalties due hereunder; to dispose
of taxes and penalties so collected in the manner hereinafter
provided, and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty
hereunder. In the administration of, and compliance with, this
Section the Department and persons who are subject to this
Section shall have the same rights, remedies, privileges,
immunities, powers and duties, and be subject to the same
conditions, restrictions, limitations, penalties and
definitions of terms, and employ the same modes of procedure,
as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
respect to all provisions therein other than the State rate of
tax), 4 (except that the reference to the State shall be to the
taxing municipality), 5, 7, 8 (except that the jurisdiction to
which the tax shall be a debt to the extent indicated in that

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

their serviceman's tax liability hereunder by separately
stating such tax as an additional charge, which charge may be
stated in combination, in a single amount, with State tax
which servicemen are authorized to collect under the Service
Use Tax Act, pursuant to such bracket schedules as the
Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in such
notification from the Department. Such refund shall be paid by
the State Treasurer out of the municipal retailers' occupation
tax fund or the Local Government Aviation Trust Fund, as
appropriate.
Except as otherwise provided in this paragraph, the
Department shall forthwith pay over to the State Treasurer, ex
officio, as trustee, all taxes and penalties collected
hereunder for deposit into the municipal retailers' occupation
tax fund. Taxes and penalties collected on aviation fuel sold
on or after December 1, 2019, shall be immediately paid over by
the Department to the State Treasurer, ex officio, as trustee,
for deposit into the Local Government Aviation Trust Fund. The
Department shall only pay moneys into the Local Government
Aviation Trust Fund under this Section for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.

47133 are binding on the municipality.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for
sales within a STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities,
the municipalities to be those from which suppliers and
servicemen have paid taxes or penalties hereunder to the
Department during the second preceding calendar month. The
amount to be paid to each municipality shall be the amount (not
including credit memoranda and not including taxes and
penalties collected on aviation fuel sold on or after December
1, 2019) collected hereunder during the second preceding
calendar month by the Department, and not including an amount
equal to the amount of refunds made during the second
preceding calendar month by the Department on behalf of such
municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund, less 1.5% of the
remainder, which the Department shall transfer into the Tax

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

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

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

to credit memoranda, arising on account of the erroneous
payment of tax or penalty hereunder. In the administration of,
and compliance with this Section, the Department and persons
who are subject to this Section shall have the same rights,
remedies, privileges, immunities, powers, and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, and definitions of terms, and employ the same modes
of procedure, as are prescribed in Sections 1, 1a, 1a-1, 1d,
1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
therein other than the State rate of tax), 2c, 3 (except as to
the disposition of taxes and penalties collected, and except
that the retailer's discount is not allowed for taxes paid on
aviation fuel that are subject to the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c,
5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9,
10, 11, 12 and 13 of the Retailers' Occupation Tax Act and
Section 3-7 of the Uniform Penalty and Interest Act as fully as
if those provisions were set forth herein.
A tax may not be imposed by a municipality under this
Section unless the municipality also imposes a tax at the same
rate under Section 8-11-1.7 of this Act.
If, on January 1, 2025, a unit of local government has in
effect a tax under this Section, or if, after January 1, 2025,
a unit of local government imposes a tax under this Section,
then that tax applies to leases of tangible personal property
in effect, entered into, or renewed on or after that date in

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

Treasurer, ex officio, as trustee, for deposit into the Local
Government Aviation Trust Fund. The Department shall only pay
moneys into the Local Government Aviation Trust Fund under
this Section for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
municipality.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for
sales within a STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities,
the municipalities to be those from which retailers have paid
taxes or penalties hereunder to the Department during the
second preceding calendar month. The amount to be paid to each
municipality shall be the amount (not including credit
memoranda and not including taxes and penalties collected on
aviation fuel sold on or after December 1, 2019) collected
hereunder during the second preceding calendar month by the
Department plus an amount the Department determines is

necessary to offset any amounts that were erroneously paid to
a different taxing body, and not including an amount equal to
the amount of refunds made during the second preceding
calendar month by the Department on behalf of the
municipality, and not including any amount that the Department
determines is necessary to offset any amounts that were
payable to a different taxing body but were erroneously paid
to the municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund, less 1.5% of the
remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt by the
Comptroller of the disbursement certification to the
municipalities and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in the certification.
For the purpose of determining the local governmental unit
whose tax is applicable, a retail sale by a producer of coal or
other mineral mined in Illinois is a sale at retail at the
place where the coal or other mineral mined in Illinois is
extracted from the earth. This paragraph does not apply to

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

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

of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
municipality. The tax imposed by a municipality under this
Section and all civil penalties that may be assessed as an
incident thereof shall be collected and enforced by the State
Department of Revenue. An ordinance imposing a tax hereunder
or effecting a change in the rate thereof shall be adopted and
a certified copy thereof filed with the Department on or
before the first day of October, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of January next following such adoption and filing.
The certificate of registration that is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act or under the Service Occupation Tax Act shall permit the
registrant to engage in a business that is taxable under any
ordinance or resolution enacted under this Section without
registering separately with the Department under the ordinance
or resolution or under this Section. The Department shall have
full power to administer and enforce this Section, to collect
all taxes and penalties due hereunder, to dispose of taxes and
penalties so collected in a manner hereinafter provided, and
to determine all rights to credit memoranda arising on account
of the erroneous payment of tax or penalty hereunder. In the
administration of and compliance with this Section, the
Department and persons who are subject to this Section shall
have the same rights, remedies, privileges, immunities,
powers, and duties, and be subject to the same conditions,

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

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

Retailers' Occupation Tax Fund. Taxes and penalties collected
on aviation fuel sold on or after December 1, 2019, shall be
immediately paid over by the Department to the State
Treasurer, ex officio, as trustee, for deposit into the Local
Government Aviation Trust Fund. The Department shall only pay
moneys into the Local Government Aviation Trust Fund under
this Section for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
Municipality.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for
sales within a STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities,
the municipalities to be those from which suppliers and
servicemen have paid taxes or penalties hereunder to the
Department during the second preceding calendar month. The
amount to be paid to each municipality shall be the amount (not
including credit memoranda and not including taxes and

penalties collected on aviation fuel sold on or after December
1, 2019) collected hereunder during the second preceding
calendar month by the Department, and not including an amount
equal to the amount of refunds made during the second
preceding calendar month by the Department on behalf of such
municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund, less 1.5% of the
remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt by the
Comptroller of the disbursement certification to the
municipalities, the Tax Compliance and Administration Fund,
and the General Revenue Fund, provided for in this Section to
be given to the Comptroller by the Department, the Comptroller
shall cause the orders to be drawn for the respective amounts
in accordance with the directions contained in the
certification.
When certifying the amount of a monthly disbursement to a
municipality under this Section, the Department shall increase
or decrease the amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous
6 months from the time a misallocation is discovered.

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

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

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

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

from the Department. The refund shall be paid by the State
Treasurer out of the business district retailers' occupation
tax fund or the Local Government Aviation Trust Fund, as
appropriate.
Except as otherwise provided in this paragraph, the
Department shall immediately pay over to the State Treasurer,
ex officio, as trustee, all taxes, penalties, and interest
collected under this subsection for deposit into the business
district retailers' occupation tax fund. Taxes and penalties
collected on aviation fuel sold on or after December 1, 2019,
shall be immediately paid over by the Department to the State
Treasurer, ex officio, as trustee, for deposit into the Local
Government Aviation Trust Fund. The Department shall only pay
moneys into the Local Government Aviation Trust Fund under
this Section for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
District.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this subsection during the second preceding calendar month for
sales within a STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,

on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities
from the business district retailers' occupation tax fund, the
municipalities to be those from which retailers have paid
taxes or penalties under this subsection to the Department
during the second preceding calendar month. The amount to be
paid to each municipality shall be the amount (not including
credit memoranda and not including taxes and penalties
collected on aviation fuel sold on or after December 1, 2019)
collected under this subsection during the second preceding
calendar month by the Department plus an amount the Department
determines is necessary to offset any amounts that were
erroneously paid to a different taxing body, and not including
an amount equal to the amount of refunds made during the second
preceding calendar month by the Department, less 2% of that
amount (except the amount collected on aviation fuel sold on
or after December 1, 2019), which shall be deposited into the
Tax Compliance and Administration Fund and shall be used by
the Department, subject to appropriation, to cover the costs
of the Department in administering and enforcing the
provisions of this subsection, on behalf of such municipality,
and not including any amount that the Department determines is
necessary to offset any amounts that were payable to a
different taxing body but were erroneously paid to the
municipality, and not including any amounts that are

transferred to the STAR Bonds Revenue Fund. Within 10 days
after receipt by the Comptroller of the disbursement
certification to the municipalities provided for in this
subsection to be given to the Comptroller by the Department,
the Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with the directions contained
in the certification. The proceeds of the tax paid to
municipalities under this subsection shall be deposited into
the Business District Tax Allocation Fund by the municipality.
An ordinance imposing or discontinuing the tax under this
subsection or effecting a change in the rate thereof shall
either (i) be adopted and a certified copy thereof filed with
the Department on or before the first day of April, whereupon
the Department, if all other requirements of this subsection
are met, shall proceed to administer and enforce this
subsection as of the first day of July next following the
adoption and filing; or (ii) be adopted and a certified copy
thereof filed with the Department on or before the first day of
October, whereupon, if all other requirements of this
subsection are met, the Department shall proceed to administer
and enforce this subsection as of the first day of January next
following the adoption and filing.
The Department of Revenue shall not administer or enforce
an ordinance imposing, discontinuing, or changing the rate of
the tax under this subsection, until the municipality also
provides, in the manner prescribed by the Department, the

boundaries of the business district and each address in the
business district in such a way that the Department can
determine by its address whether a business is located in the
business district. The municipality must provide this boundary
and address information to the Department on or before April 1
for administration and enforcement of the tax under this
subsection by the Department beginning on the following July 1
and on or before October 1 for administration and enforcement
of the tax under this subsection by the Department beginning
on the following January 1. The Department of Revenue shall
not administer or enforce any change made to the boundaries of
a business district or address change, addition, or deletion
until the municipality reports the boundary change or address
change, addition, or deletion to the Department in the manner
prescribed by the Department. The municipality must provide
this boundary change information or address change, addition,
or deletion to the Department on or before April 1 for
administration and enforcement by the Department of the change
beginning on the following July 1 and on or before October 1
for administration and enforcement by the Department of the
change beginning on the following January 1. The retailers in
the business district shall be responsible for charging the
tax imposed under this subsection. If a retailer is
incorrectly included or excluded from the list of those
required to collect the tax under this subsection, both the
Department of Revenue and the retailer shall be held harmless

if they reasonably relied on information provided by the
municipality.
A municipality that imposes the tax under this subsection
must submit to the Department of Revenue any other information
as the Department may require for the administration and
enforcement of the tax.
When certifying the amount of a monthly disbursement to a
municipality under this subsection, the Department shall
increase or decrease the amount by an amount necessary to
offset any misallocation of previous disbursements. The offset
amount shall be the amount erroneously disbursed within the
previous 6 months from the time a misallocation is discovered.
Nothing in this subsection shall be construed to authorize
the municipality to impose a tax upon the privilege of
engaging in any business which under the Constitution of the
United States may not be made the subject of taxation by this
State.
If a tax is imposed under this subsection (b), a tax shall
also be imposed under subsection (c) of this Section.
(c) If a tax has been imposed under subsection (b), a
Business District Service Occupation Tax shall also be imposed
upon all persons engaged, in the business district, in the
business of making sales of service, who, as an incident to
making those sales of service, transfer tangible personal
property within the business district, either in the form of
tangible personal property or in the form of real estate as an

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

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

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

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

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

the Business District Tax Allocation Fund by the municipality.
An ordinance imposing or discontinuing the tax under this
subsection or effecting a change in the rate thereof shall
either (i) be adopted and a certified copy thereof filed with
the Department on or before the first day of April, whereupon
the Department, if all other requirements of this subsection
are met, shall proceed to administer and enforce this
subsection as of the first day of July next following the
adoption and filing; or (ii) be adopted and a certified copy
thereof filed with the Department on or before the first day of
October, whereupon, if all other conditions of this subsection
are met, the Department shall proceed to administer and
enforce this subsection as of the first day of January next
following the adoption and filing.
The Department of Revenue shall not administer or enforce
an ordinance imposing, discontinuing, or changing the rate of
the tax under this subsection, until the municipality also
provides, in the manner prescribed by the Department, the
boundaries of the business district in such a way that the
Department can determine by its address whether a business is
located in the business district. The municipality must
provide this boundary and address information to the
Department on or before April 1 for administration and
enforcement of the tax under this subsection by the Department
beginning on the following July 1 and on or before October 1
for administration and enforcement of the tax under this

subsection by the Department beginning on the following
January 1. The Department of Revenue shall not administer or
enforce any change made to the boundaries of a business
district or address change, addition, or deletion until the
municipality reports the boundary change or address change,
addition, or deletion to the Department in the manner
prescribed by the Department. The municipality must provide
this boundary change information or address change, addition,
or deletion to the Department on or before April 1 for
administration and enforcement by the Department of the change
beginning on the following July 1 and on or before October 1
for administration and enforcement by the Department of the
change beginning on the following January 1. The retailers in
the business district shall be responsible for charging the
tax imposed under this subsection. If a retailer is
incorrectly included or excluded from the list of those
required to collect the tax under this subsection, both the
Department of Revenue and the retailer shall be held harmless
if they reasonably relied on information provided by the
municipality.
A municipality that imposes the tax under this subsection
must submit to the Department of Revenue any other information
as the Department may require for the administration and
enforcement of the tax.
Nothing in this subsection shall be construed to authorize
the municipality to impose a tax upon the privilege of

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

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

States may not be made the subject of taxation by this State.
The proceeds of the tax imposed under this subsection
shall be deposited into the Business District Tax Allocation
Fund.
(e) Obligations secured by the Business District Tax
Allocation Fund may be issued to provide for the payment or
reimbursement of business district project costs. Those
obligations, when so issued, shall be retired in the manner
provided in the ordinance authorizing the issuance of those
obligations by the receipts of taxes imposed pursuant to
subsections (10) and (11) of Section 11-74.3-3 and by other
revenue designated or pledged by the municipality. A
municipality may in the ordinance pledge, for any period of
time up to and including the dissolution date, all or any part
of the funds in and to be deposited in the Business District
Tax Allocation Fund to the payment of business district
project costs and obligations. Whenever a municipality pledges
all of the funds to the credit of a business district tax
allocation fund to secure obligations issued or to be issued
to pay or reimburse business district project costs, the
municipality may specifically provide that funds remaining to
the credit of such business district tax allocation fund after
the payment of such obligations shall be accounted for
annually and shall be deemed to be "surplus" funds, and such
"surplus" funds shall be expended by the municipality for any
business district project cost as approved in the business

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

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

obligations, prescribe the rights, powers, and duties thereof
to be exercised for the benefit of the municipality and the
benefit of the owners of such obligations, provide for the
holding in trust, investment, and use of moneys, funds, and
accounts held under an ordinance, provide for assignment of
and direct payment of the moneys to pay such obligations or to
be deposited into such funds or accounts directly to such
trustee, be subject to such terms of redemption with or
without premium, and be sold at such price, all as the
corporate authorities shall determine. No referendum approval
of the electors shall be required as a condition to the
issuance of obligations pursuant to this Law except as
provided in this Section.
In the event the municipality authorizes the issuance of
obligations pursuant to the authority of this Law secured by
the full faith and credit of the municipality, or pledges ad
valorem taxes pursuant to this subsection, which obligations
are other than obligations which may be issued under home rule
powers provided by Section 6 of Article VII of the Illinois
Constitution or which ad valorem taxes are other than ad
valorem taxes which may be pledged under home rule powers
provided by Section 6 of Article VII of the Illinois
Constitution or which are levied in a special service area
pursuant to the Special Service Area Tax Law, the ordinance
authorizing the issuance of those obligations or pledging
those taxes shall be published within 10 days after the

ordinance has been adopted, in a newspaper having a general
circulation within the municipality. The publication of the
ordinance shall be accompanied by a notice of (i) the specific
number of voters required to sign a petition requesting the
question of the issuance of the obligations or pledging such
ad valorem taxes to be submitted to the electors; (ii) the time
within which the petition must be filed; and (iii) the date of
the prospective referendum. The municipal clerk shall provide
a petition form to any individual requesting one.
If no petition is filed with the municipal clerk, as
hereinafter provided in this Section, within 21 days after the
publication of the ordinance, the ordinance shall be in
effect. However, if within that 21-day period a petition is
filed with the municipal clerk, signed by electors numbering
not less than 15% of the number of electors voting for the
mayor or president at the last general municipal election,
asking that the question of issuing obligations using full
faith and credit of the municipality as security for the cost
of paying or reimbursing business district project costs, or
of pledging such ad valorem taxes for the payment of those
obligations, or both, be submitted to the electors of the
municipality, the municipality shall not be authorized to
issue obligations of the municipality using the full faith and
credit of the municipality as security or pledging such ad
valorem taxes for the payment of those obligations, or both,
until the proposition has been submitted to and approved by a

majority of the voters voting on the proposition at a
regularly scheduled election. The municipality shall certify
the proposition to the proper election authorities for
submission in accordance with the general election law.
The ordinance authorizing the obligations may provide that
the obligations shall contain a recital that they are issued
pursuant to this Law, which recital shall be conclusive
evidence of their validity and of the regularity of their
issuance.
In the event the municipality authorizes issuance of
obligations pursuant to this Law secured by the full faith and
credit of the municipality, the ordinance authorizing the
obligations may provide for the levy and collection of a
direct annual tax upon all taxable property within the
municipality sufficient to pay the principal thereof and
interest thereon as it matures, which levy may be in addition
to and exclusive of the maximum of all other taxes authorized
to be levied by the municipality, which levy, however, shall
be abated to the extent that monies from other sources are
available for payment of the obligations and the municipality
certifies the amount of those monies available to the county
clerk.
A certified copy of the ordinance shall be filed with the
county clerk of each county in which any portion of the
municipality is situated, and shall constitute the authority
for the extension and collection of the taxes to be deposited

in the business district tax allocation fund.
A municipality may also issue its obligations to refund,
in whole or in part, obligations theretofore issued by the
municipality under the authority of this Law, whether at or
prior to maturity. However, the last maturity of the refunding
obligations shall not be expressed to mature later than the
dissolution date.
In the event a municipality issues obligations under home
rule powers or other legislative authority, the proceeds of
which are pledged to pay or reimburse business district
project costs, the municipality may, if it has followed the
procedures in conformance with this Law, retire those
obligations from funds in the business district tax allocation
fund in amounts and in such manner as if those obligations had
been issued pursuant to the provisions of this Law.
No obligations issued pursuant to this Law shall be
regarded as indebtedness of the municipality issuing those
obligations or any other taxing district for the purpose of
any limitation imposed by law.
Obligations issued pursuant to this Law shall not be
subject to the provisions of the Bond Authorization Act.
(f) When business district project costs, including,
without limitation, all obligations paying or reimbursing
business district project costs have been paid, any surplus
funds then remaining in the Business District Tax Allocation
Fund shall be distributed to the municipal treasurer for

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

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

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

11a, 12, and 13 of the Retailers' Occupation Tax Act and
Section 3-7 of the Uniform Penalty and Interest Act, as fully
as if those provisions were set forth in this subsection.
Persons subject to any tax imposed under this subsection
may reimburse themselves for their seller's tax liability by
separately stating the tax as an additional charge, which
charge may be stated in combination, in a single amount, with
State taxes that sellers are required to collect, in
accordance with such bracket schedules as the Department may
prescribe.
Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the tax fund referenced under paragraph (g)
of this Section or the Local Government Aviation Trust Fund,
as appropriate.
If a tax is imposed under this subsection (b), a tax shall
also be imposed at the same rate under subsections (c) and (d)
of this Section.
For the purpose of determining whether a tax authorized
under this Section is applicable, a retail sale, by a producer
of coal or other mineral mined in Illinois, is a sale at retail
at the place where the coal or other mineral mined in Illinois

is extracted from the earth. This paragraph does not apply to
coal or other mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the Federal Constitution as a sale in
interstate or foreign commerce.
Nothing in this Section shall be construed to authorize
the Authority to impose a tax upon the privilege of engaging in
any business which under the Constitution of the United States
may not be made the subject of taxation by this State.
(c) If a tax has been imposed under subsection (b), a
service occupation tax shall also be imposed at the same rate
upon all persons engaged, in the metropolitan area, in the
business of making sales of service, who, as an incident to
making those sales of service, transfer tangible personal
property within the metropolitan area as an incident to a sale
of service. The tax imposed under this subsection and all
civil penalties that may be assessed as an incident thereof
shall be collected and enforced by the Department of Revenue.
Beginning December 1, 2019 and through December 31, 2020,
this tax is not imposed on sales of aviation fuel unless the
tax revenue is expended for airport-related purposes. If the
Authority does not have an airport-related purpose to which it
dedicates aviation fuel tax revenue, then aviation fuel is
excluded from the tax. The Authority must comply with the
certification requirements for airport-related purposes under
Section 2-22 of the Retailers' Occupation Tax Act. Beginning

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

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

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

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

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

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

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

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

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

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

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

procedure as are set forth in Sections 2 (except that the
reference to State in the definition of supplier maintaining a
place of business in this State means the district), 2a
through 2d, 3 through 3-50 (in respect to all provisions
contained in those Sections other than the State rate of tax),
4 (except that the reference to the State shall be to the
district), 5, 7, 8 (except that the jurisdiction to which the
tax is a debt to the extent indicated in that Section 8 is the
district), 9 (except as to the disposition of taxes and
penalties collected, and except that the retailer's discount
is not allowed for taxes paid on aviation fuel that are subject
to the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133), 10, 11, 12 (except the reference therein to
Section 2b of the Retailers' Occupation Tax Act), 13 (except
that any reference to the State means the district), Section
15, 16, 17, 18, 19, and 20 of the Service Occupation Tax Act
and all provisions of the Uniform Penalty and Interest Act, as
fully as if those provisions were set forth herein.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability hereunder by separately stating the
tax as an additional charge, that charge may be stated in
combination in a single amount with State tax that servicemen
are authorized to collect under the Service Use Tax Act, under
any bracket schedules the Department may prescribe.
(c) The taxes imposed in subsections (a) and (b) may not be

imposed on personal property titled or registered with an
agency of the State or on personal property taxed at the 1%
rate under the Retailers' Occupation Tax Act and the Service
Occupation Tax Act (or at the 0% rate imposed under this
amendatory Act of the 102nd General Assembly).
(c-5) If, on January 1, 2025, a unit of local government
has in effect a tax under this Section, or if, after January 1,
2025, a unit of local government imposes a tax under this
Section, then that tax applies to leases of tangible personal
property in effect, entered into, or renewed on or after that
date in the same manner as the tax under this Section and in
accordance with the changes made by this amendatory Act of the
103rd General Assembly.
(d) Nothing in this Section shall be construed to
authorize the district to impose a tax upon the privilege of
engaging in any business that under the Constitution of the
United States may not be made the subject of taxation by the
State.
(e) The certificate of registration that is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act or a serviceman under the Service Occupation Tax Act
permits the retailer or serviceman to engage in a business
that is taxable without registering separately with the
Department under an ordinance or resolution under this
Section.
(f) Except as otherwise provided, the Department shall

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

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

Department. The refund shall be paid by the Treasurer out of
the Flood Prevention Occupation Tax Fund or the Local
Government Aviation Trust Fund, as appropriate.
(g) If a county imposes a tax under this Section, then the
county board shall, by ordinance, discontinue the tax upon the
payment of all indebtedness of the flood prevention district.
The tax shall not be discontinued until all indebtedness of
the District has been paid.
(h) Any ordinance imposing the tax under this Section, or
any ordinance that discontinues the tax, must be certified by
the county clerk and filed with the Illinois Department of
Revenue either (i) on or before the first day of April,
whereupon the Department shall proceed to administer and
enforce the tax or change in the rate as of the first day of
July next following the filing; or (ii) on or before the first
day of October, whereupon the Department shall proceed to
administer and enforce the tax or change in the rate as of the
first day of January next following the filing.
(j) County Flood Prevention Occupation Tax Fund. All
proceeds received by a county from a tax distribution under
this Section must be maintained in a special fund known as the
[name of county] flood prevention occupation tax fund. The
county shall, at the direction of the flood prevention
district, use moneys in the fund to pay the costs of providing
emergency levee repair and flood prevention and to pay bonds,
notes, and other evidences of indebtedness issued under this

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

aviation fuel tax revenue, then aviation fuel shall be
excluded from tax. The board must comply with the
certification requirements for airport-related purposes under
Section 2-22 of the Retailers' Occupation Tax Act. For
purposes of this Act, "airport-related purposes" has the
meaning ascribed in Section 6z-20.2 of the State Finance Act.
Beginning January 1, 2021, this tax is not imposed on sales of
aviation fuel for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
District. The tax imposed by the Board under this Section and
all civil penalties that may be assessed as an incident of the
tax shall be collected and enforced by the Department of
Revenue. The certificate of registration that is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act shall permit the retailer to engage in a business that is
taxable without registering separately with the Department
under an ordinance or resolution under this Section. The
Department has full power to administer and enforce this
Section, to collect all taxes and penalties due under this
Section, to dispose of taxes and penalties so collected in the
manner provided in this Section, and to determine all rights
to credit memoranda arising on account of the erroneous
payment of a tax or penalty under this Section. In the
administration of and compliance with this Section, the
Department and persons who are subject to this Section shall
(i) have the same rights, remedies, privileges, immunities,

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

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

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

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

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

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

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

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

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

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

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

reimburse themselves for their seller's tax liability
hereunder by separately stating the tax as an additional
charge, which charge may be stated in combination, in a single
amount, with State taxes that sellers are required to collect
under the Use Tax Act, in accordance with such bracket
schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Metro East Mass Transit District tax fund
established under paragraph (h) of this Section or the Local
Government Aviation Trust Fund, as appropriate.
If a tax is imposed under this subsection (b), a tax shall
also be imposed under subsections (c) and (d) of this Section.
For the purpose of determining whether a tax authorized
under this Section is applicable, a retail sale, by a producer
of coal or other mineral mined in Illinois, is a sale at retail
at the place where the coal or other mineral mined in Illinois
is extracted from the earth. This paragraph does not apply to
coal or other mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the Federal Constitution as a sale in
interstate or foreign commerce.

No tax shall be imposed or collected under this subsection
on the sale of a motor vehicle in this State to a resident of
another state if that motor vehicle will not be titled in this
State.
Nothing in this Section shall be construed to authorize
the Metro East Mass Transit District to impose a tax upon the
privilege of engaging in any business which under the
Constitution of the United States may not be made the subject
of taxation by this State.
(c) If a tax has been imposed under subsection (b), a Metro
East Mass Transit District Service Occupation Tax shall also
be imposed upon all persons engaged, in the district, in the
business of making sales of service, who, as an incident to
making those sales of service, transfer tangible personal
property within the District, either in the form of tangible
personal property or in the form of real estate as an incident
to a sale of service. The tax rate shall be 1/4%, or as
authorized under subsection (d-5) of this Section, of the
selling price of tangible personal property so transferred
within the district, except that the rate of tax imposed in
these Counties under this Section on sales of aviation fuel on
or after December 1, 2019 shall be 0.25% in Madison County
unless the Metro-East Mass Transit District in Madison County
has an "airport-related purpose" and any additional amount
authorized under subsection (d-5) is expended for
airport-related purposes. If there is no airport-related

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

payment of tax or penalty hereunder. In the administration of,
and compliance with this paragraph, the Department and persons
who are subject to this paragraph shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions and definitions of terms and
employ the same modes of procedure as are prescribed in
Sections 1a-1, 2 (except that the reference to State in the
definition of supplier maintaining a place of business in this
State shall mean the Authority), 2a, 3 through 3-50 (in
respect to all provisions therein other than the State rate of
tax), 4 (except that the reference to the State shall be to the
Authority), 5, 7, 8 (except that the jurisdiction to which the
tax shall be a debt to the extent indicated in that Section 8
shall be the District), 9 (except as to the disposition of
taxes and penalties collected, and except that the returned
merchandise credit for this tax may not be taken against any
State tax, and except that the retailer's discount is not
allowed for taxes paid on aviation fuel that are subject to the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133), 10, 11, 12 (except the reference therein to Section 2b
of the Retailers' Occupation Tax Act), 13 (except that any
reference to the State shall mean the District), the first
paragraph of Section 15, 16, 17, 18, 19 and 20 of the Service
Occupation Tax Act and Section 3-7 of the Uniform Penalty and
Interest Act, as fully as if those provisions were set forth

herein.
Persons subject to any tax imposed under the authority
granted in this paragraph may reimburse themselves for their
serviceman's tax liability hereunder by separately stating the
tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax that
servicemen are authorized to collect under the Service Use Tax
Act, in accordance with such bracket schedules as the
Department may prescribe.
Whenever the Department determines that a refund should be
made under this paragraph to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Metro East Mass Transit District tax fund
established under paragraph (h) of this Section or the Local
Government Aviation Trust Fund, as appropriate.
Nothing in this paragraph shall be construed to authorize
the District to impose a tax upon the privilege of engaging in
any business which under the Constitution of the United States
may not be made the subject of taxation by the State.
(d) If a tax has been imposed under subsection (b), a Metro
East Mass Transit District Use Tax shall also be imposed upon
the privilege of using, in the district, any item of tangible
personal property that is purchased outside the district at

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

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

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

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

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

ordinance excluding titled or registered tangible personal
property from the rate increase must be filed with the
Department at least 15 days before its effective date. At any
time after adopting an ordinance excluding from the rate
increase tangible personal property that is titled or
registered with an agency of this State's government, the
Metro East Mass Transit District Board of Trustees may adopt
an ordinance applying the rate increase to that tangible
personal property. The ordinance shall be adopted, and a
certified copy of that ordinance shall be filed with the
Department, on or before October 1, whereupon the Department
shall proceed to administer and enforce the rate increase
against tangible personal property titled or registered with
an agency of this State's government as of the following
January 1. After December 31, 1995, any reimposed rate
increase in effect under this subsection shall no longer apply
to tangible personal property titled or registered with an
agency of this State's government. Beginning January 1, 1996,
the Board of Trustees of any Metro East Mass Transit District
may never reimpose a previously excluded tax rate increase on
tangible personal property titled or registered with an agency
of this State's government. After July 1, 2004, if the voters
have approved a referendum under this subsection to increase
the tax rate under this subsection, the Metro East Mass
Transit District Board of Trustees may adopt by a majority
vote an ordinance that excludes from the rate increase

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

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

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

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

Treasurer, ex officio, as trustee, for deposit into the Local
Government Aviation Trust Fund. The Department shall only pay
moneys into the Local Government Aviation Trust Fund under
this Act for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
District.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for
sales within a STAR bond district. The Department shall make
this certification only if the local mass transit district
imposes a tax on real property as provided in the definition of
"local sales taxes" under the Innovation Development and
Economy Act.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the State
Department of Revenue shall prepare and certify to the
Comptroller of the State of Illinois the amount to be paid to
the District, which shall be the amount (not including credit
memoranda and not including taxes and penalties collected on
aviation fuel sold on or after December 1, 2019 that are
deposited into the Local Government Aviation Trust Fund)

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

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

provisions of any tax shall conform, as closely as may be
practicable, to the provisions of the Municipal Retailers
Occupation Tax Act, including without limitation, conformity
to penalties with respect to the tax imposed and as to the
powers of the State Department of Revenue to promulgate and
enforce rules and regulations relating to the administration
and enforcement of the provisions of the tax imposed, except
that reference in the Act to any municipality shall refer to
the Authority and the tax shall be imposed only with regard to
receipts from sales of motor fuel in the metropolitan region,
at rates as limited by this Section.
(c) In connection with the tax imposed under paragraph (b)
of this Section, the Board may impose a tax upon the privilege
of using in the metropolitan region motor fuel for the
operation of a motor vehicle upon public highways, the tax to
be at a rate not in excess of the rate of tax imposed under
paragraph (b) of this Section. The Board may provide for
details of the tax.
(d) The Board may impose a motor vehicle parking tax upon
the privilege of parking motor vehicles at off-street parking
facilities in the metropolitan region at which a fee is
charged, and may provide for reasonable classifications in and
exemptions to the tax, for administration and enforcement
thereof and for civil penalties and refunds thereunder and may
provide criminal penalties thereunder, the maximum penalties
not to exceed the maximum criminal penalties provided in the

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

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

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

amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Regional Transportation Authority tax
fund established under paragraph (n) of this Section or the
Local Government Aviation Trust Fund, as appropriate.
If a tax is imposed under this subsection (e), a tax shall
also be imposed under subsections (f) and (g) of this Section.
For the purpose of determining whether a tax authorized
under this Section is applicable, a retail sale by a producer
of coal or other mineral mined in Illinois, is a sale at retail
at the place where the coal or other mineral mined in Illinois
is extracted from the earth. This paragraph does not apply to
coal or other mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the Federal Constitution as a sale in
interstate or foreign commerce.
No tax shall be imposed or collected under this subsection
on the sale of a motor vehicle in this State to a resident of
another state if that motor vehicle will not be titled in this
State.
Nothing in this Section shall be construed to authorize
the Regional Transportation Authority to impose a tax upon the
privilege of engaging in any business that under the
Constitution of the United States may not be made the subject
of taxation by this State.
(f) If a tax has been imposed under paragraph (e), a

Regional Transportation Authority Service Occupation Tax shall
also be imposed upon all persons engaged, in the metropolitan
region in the business of making sales of service, who as an
incident to making the sales of service, transfer tangible
personal property within the metropolitan region, either in
the form of tangible personal property or in the form of real
estate as an incident to a sale of service. In Cook County, the
tax rate shall be: (1) 1.25% of the serviceman's cost price of
food prepared for immediate consumption and transferred
incident to a sale of service subject to the service
occupation tax by an entity licensed under the Hospital
Licensing Act, the Nursing Home Care Act, the Specialized
Mental Health Rehabilitation Act of 2013, the ID/DD Community
Care Act, or the MC/DD Act that is located in the metropolitan
region; (2) 1.25% of the selling price of tangible personal
property taxed at the 1% rate under the Service Occupation Tax
Act (or at the 0% rate imposed under this amendatory Act of the
102nd General Assembly); and (3) 1% of the selling price from
other taxable sales of tangible personal property transferred.
In DuPage, Kane, Lake, McHenry, and Will counties, the rate
shall be 0.75% of the selling price of all tangible personal
property transferred. The rate of tax imposed in DuPage, Kane,
Lake, McHenry, and Will counties under this Section on sales
of aviation fuel on or after December 1, 2019 shall, however,
be 0.25% unless the Regional Transportation Authority in
DuPage, Kane, Lake, McHenry, and Will counties has an

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

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

are authorized to collect under the Service Use Tax Act, under
any bracket schedules the Department may prescribe.
Whenever the Department determines that a refund should be
made under this paragraph to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Regional Transportation Authority tax
fund established under paragraph (n) of this Section or the
Local Government Aviation Trust Fund, as appropriate.
Nothing in this paragraph shall be construed to authorize
the Authority to impose a tax upon the privilege of engaging in
any business that under the Constitution of the United States
may not be made the subject of taxation by the State.
(g) If a tax has been imposed under paragraph (e), a tax
shall also be imposed upon the privilege of using in the
metropolitan region, any item of tangible personal property
that is purchased outside the metropolitan region at retail
from a retailer, and that is titled or registered with an
agency of this State's government. In Cook County, the tax
rate shall be 1% of the selling price of the tangible personal
property, as "selling price" is defined in the Use Tax Act. In
DuPage, Kane, Lake, McHenry, and Will counties, the tax rate
shall be 0.75% of the selling price of the tangible personal
property, as "selling price" is defined in the Use Tax Act. The

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

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

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

amount to be paid to the Authority shall be the amount
collected hereunder during the second preceding calendar month
by the Department, less any amount determined by the
Department to be necessary for the payment of refunds, and
less any amounts that are transferred to the STAR Bonds
Revenue Fund. Within 10 days after receipt by the Comptroller
of the disbursement certification to the Authority provided
for in this Section to be given to the Comptroller by the
Department, the Comptroller shall cause the orders to be drawn
for that amount in accordance with the directions contained in
the certification.
(i) The Board may not impose any other taxes except as it
may from time to time be authorized by law to impose.
(j) A certificate of registration issued by the State
Department of Revenue to a retailer under the Retailers'
Occupation Tax Act or under the Service Occupation Tax Act
shall permit the registrant to engage in a business that is
taxed under the tax imposed under paragraphs (b), (e), (f) or
(g) of this Section and no additional registration shall be
required under the tax. A certificate issued under the Use Tax
Act or the Service Use Tax Act shall be applicable with regard
to any tax imposed under paragraph (c) of this Section.
(k) The provisions of any tax imposed under paragraph (c)
of this Section shall conform as closely as may be practicable
to the provisions of the Use Tax Act, including without
limitation conformity as to penalties with respect to the tax

imposed and as to the powers of the State Department of Revenue
to promulgate and enforce rules and regulations relating to
the administration and enforcement of the provisions of the
tax imposed. The taxes shall be imposed only on use within the
metropolitan region and at rates as provided in the paragraph.
(l) The Board in imposing any tax as provided in
paragraphs (b) and (c) of this Section, shall, after seeking
the advice of the State Department of Revenue, provide means
for retailers, users or purchasers of motor fuel for purposes
other than those with regard to which the taxes may be imposed
as provided in those paragraphs to receive refunds of taxes
improperly paid, which provisions may be at variance with the
refund provisions as applicable under the Municipal Retailers
Occupation Tax Act. The State Department of Revenue may
provide for certificates of registration for users or
purchasers of motor fuel for purposes other than those with
regard to which taxes may be imposed as provided in paragraphs
(b) and (c) of this Section to facilitate the reporting and
nontaxability of the exempt sales or uses.
(m) Any ordinance imposing or discontinuing any tax under
this Section shall be adopted and a certified copy thereof
filed with the Department on or before June 1, whereupon the
Department of Revenue shall proceed to administer and enforce
this Section on behalf of the Regional Transportation
Authority as of September 1 next following such adoption and
filing. Beginning January 1, 1992, an ordinance or resolution

imposing or discontinuing the tax hereunder shall be adopted
and a certified copy thereof filed with the Department on or
before the first day of July, whereupon the Department shall
proceed to administer and enforce this Section as of the first
day of October next following such adoption and filing.
Beginning January 1, 1993, an ordinance or resolution
imposing, increasing, decreasing, or discontinuing the tax
hereunder shall be adopted and a certified copy thereof filed
with the Department, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of the
first month to occur not less than 60 days following such
adoption and filing. Any ordinance or resolution of the
Authority imposing a tax under this Section and in effect on
August 1, 2007 shall remain in full force and effect and shall
be administered by the Department of Revenue under the terms
and conditions and rates of tax established by such ordinance
or resolution until the Department begins administering and
enforcing an increased tax under this Section as authorized by
Public Act 95-708. The tax rates authorized by Public Act
95-708 are effective only if imposed by ordinance of the
Authority.
(n) Except as otherwise provided in this subsection (n),
the State Department of Revenue shall, upon collecting any
taxes as provided in this Section, pay the taxes over to the
State Treasurer as trustee for the Authority. The taxes shall
be held in a trust fund outside the State Treasury. If an

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

time of each monthly disbursement to the Authority, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this subsection. Within 10 days after receipt by the
Comptroller of the certification of the amounts, the
Comptroller shall cause an order to be drawn for the transfer
of the amount certified into the Tax Compliance and
Administration Fund and the payment of two-thirds of the
amounts certified in item (i) of this subsection to the
Authority and one-third of the amounts certified in item (i)
of this subsection to the respective counties other than Cook
County and the amount certified in items (ii) and (iii) of this
subsection to the Authority.
In addition to the disbursement required by the preceding
paragraph, an allocation shall be made in July 1991 and each
year thereafter to the Regional Transportation Authority. The
allocation shall be made in an amount equal to the average
monthly distribution during the preceding calendar year
(excluding the 2 months of lowest receipts) and the allocation
shall include the amount of average monthly distribution from
the Regional Transportation Authority Occupation and Use Tax
Replacement Fund. The distribution made in July 1992 and each
year thereafter under this paragraph and the preceding
paragraph shall be reduced by the amount allocated and
disbursed under this paragraph in the preceding calendar year.
The Department of Revenue shall prepare and certify to the

Comptroller for disbursement the allocations made in
accordance with this paragraph.
(o) Failure to adopt a budget ordinance or otherwise to
comply with Section 4.01 of this Act or to adopt a Five-year
Capital Program or otherwise to comply with paragraph (b) of
Section 2.01 of this Act shall not affect the validity of any
tax imposed by the Authority otherwise in conformity with law.
(p) At no time shall a public transportation tax or motor
vehicle parking tax authorized under paragraphs (b), (c), and
(d) of this Section be in effect at the same time as any
retailers' occupation, use or service occupation tax
authorized under paragraphs (e), (f), and (g) of this Section
is in effect.
Any taxes imposed under the authority provided in
paragraphs (b), (c), and (d) shall remain in effect only until
the time as any tax authorized by paragraph (e), (f), or (g) of
this Section are imposed and becomes effective. Once any tax
authorized by paragraph (e), (f), or (g) is imposed the Board
may not reimpose taxes as authorized in paragraphs (b), (c),
and (d) of the Section unless any tax authorized by paragraph
(e), (f), or (g) of this Section becomes ineffective by means
other than an ordinance of the Board.
(q) Any existing rights, remedies and obligations
(including enforcement by the Regional Transportation
Authority) arising under any tax imposed under paragraph (b),
(c), or (d) of this Section shall not be affected by the

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

(1) a person who is not of good character and
reputation in the community in which he resides; the
Department may consider past conviction of a felony but
the conviction shall not operate as an absolute bar to
receiving a permit;
(2) a person who has been convicted of a felony under
any Federal or State law, if the Department, after
investigation and a hearing and consideration of
mitigating factors and evidence of rehabilitation
contained in the applicant's record, including those in
Section 4i of this Act, determines that such person has
not been sufficiently rehabilitated to warrant the public
trust and the conviction will impair the ability of the
person to engage in the position for which a permit is
sought;
(3) a corporation, if any officer, manager or director
thereof, or any stockholder or stockholders owning in the
aggregate more than 5% of the stock of such corporation,
would not be eligible to receive a permit under this Act
for any reason.
With respect to cigarettes which come within the scope of
such a permit and which any such permittee delivers or causes
to be delivered in Illinois to licensed distributors, such
permittee shall remit the tax imposed by this Act at the times
provided for in Section 3 of this Act. Each such remittance
shall be accompanied by a return filed with the Department on a

form to be prescribed and furnished by the Department and
shall disclose such information as the Department may lawfully
require. Information that the Department may lawfully require
includes information related to the uniform regulation and
taxation of cigarettes. The Department may promulgate rules to
require that the permittee's return be accompanied by
appropriate computer-generated magnetic media supporting
schedule data in the format prescribed by the Department,
unless, as provided by rule, the Department grants an
exception upon petition of the permittee. Each such return
shall be accompanied by a copy of each invoice rendered by the
permittee to any licensed distributor to whom the permittee
delivered cigarettes of the type covered by the permit (or
caused cigarettes of the type covered by the permit to be
delivered) in Illinois during the period covered by such
return.
Such permit may be suspended, canceled or revoked when, at
any time, the Department considers that the security given is
inadequate, or that such tax can more effectively be collected
from distributors located in this State, or whenever the
permittee violates any provision of this Act or any lawful
rule or regulation issued by the Department pursuant to this
Act or is determined to be ineligible for a distributor's
permit under this Act as provided in this Section, whenever
the permittee shall notify the Department in writing of his
desire to have the permit canceled. The Department shall have

the power, in its discretion, to issue a new permit after such
suspension, cancellation or revocation, except when the person
who would receive the permit is ineligible to receive a
distributor's permit under this Act.
All permits issued by the Department under this Act shall
be valid for not to exceed one year after issuance unless
sooner revoked, canceled or suspended as in this Act provided.
(b) Out-of-state cigarette manufacturers who are not
required to be licensed as distributors of cigarettes in this
State and who do not elect to obtain approval under subsection
4b(a) to pay the tax imposed by this Act, but who elect to
qualify under this Act as distributors of cigarettes in this
State for purposes of shipping and delivering unstamped
original packages of cigarettes into this State to licensed
distributors, shall obtain a permit from the Department. These
permits shall be issued without charge in such form as the
Department may prescribe and shall not be transferable or
assignable.
The following are ineligible to receive a distributor's
permit under this subsection:
(1) a person who is not of good character and
reputation in the community in which he or she resides;
the Department may consider past conviction of a felony
but the conviction shall not operate as an absolute bar to
receiving a permit;
(2) a person who has been convicted of a felony under

any federal or State law, if the Department, after
investigation and a hearing and consideration of
mitigating factors and evidence of rehabilitation
contained in the applicant's record, including those set
forth in Section 4i of this Act, determines that the
person has not been sufficiently rehabilitated to warrant
the public trust and the conviction will impair the
ability of the person to engage in the position for which a
permit is sought; and
(3) a corporation, if any officer, manager, or
director thereof, or any stockholder or stockholders
owning in the aggregate more than 5% of the stock of the
corporation, would not be eligible to receive a permit
under this Act for any reason.
With respect to original packages of cigarettes that such
permittee delivers or causes to be delivered in Illinois and
distributes to the public for promotional purposes without
consideration, the permittee shall pay the tax imposed by this
Act by remitting the amount thereof to the Department by the
5th day of each month covering cigarettes shipped or otherwise
delivered in Illinois for those purposes during the preceding
calendar month. The permittee, before delivering those
cigarettes or causing those cigarettes to be delivered in this
State, shall evidence his or her obligation to remit the taxes
due with respect to those cigarettes by imprinting language to
be prescribed by the Department on each original package of

cigarettes, in such place thereon and in such manner also to be
prescribed by the Department. The imprinted language shall
acknowledge the permittee's payment of or liability for the
tax imposed by this Act with respect to the distribution of
those cigarettes.
With respect to cigarettes that the permittee delivers or
causes to be delivered in Illinois to Illinois licensed
distributors or distributed to the public for promotional
purposes, the permittee shall, by the 5th day of each month,
file with the Department, a report covering cigarettes shipped
or otherwise delivered in Illinois to licensed distributors or
distributed to the public for promotional purposes during the
preceding calendar month on a form to be prescribed and
furnished by the Department and shall disclose such other
information as the Department may lawfully require.
Information that the Department may lawfully require includes
information related to the uniform regulation and taxation of
cigarettes. The Department may promulgate rules to require
that the permittee's report be accompanied by appropriate
computer-generated magnetic media supporting schedule data in
the format prescribed by the Department, unless, as provided
by rule, the Department grants an exception upon petition of
the permittee. Each such report shall be accompanied by a copy
of each invoice rendered by the permittee to any purchaser to
whom the permittee delivered cigarettes of the type covered by
the permit (or caused cigarettes of the type covered by the

permit to be delivered) in Illinois during the period covered
by such report.
Such permit may be suspended, canceled, or revoked
whenever the permittee violates any provision of this Act or
any lawful rule or regulation issued by the Department
pursuant to this Act, is determined to be ineligible for a
distributor's permit under this Act as provided in this
Section, or notifies the Department in writing of his or her
desire to have the permit canceled. The Department shall have
the power, in its discretion, to issue a new permit after such
suspension, cancellation, or revocation, except when the
person who would receive the permit is ineligible to receive a
distributor's permit under this Act.
All permits issued by the Department under this Act shall
be valid for a period not to exceed one year after issuance
unless sooner revoked, canceled, or suspended as provided in
this Act.
(Source: P.A. 100-286, eff. 1-1-18.)
(35 ILCS 130/9) (from Ch. 120, par. 453.9)
Sec. 9. Returns; remittance. Every distributor who is
required to procure a license under this Act, but who is not a
manufacturer of cigarettes in original packages which are
contained in a sealed transparent wrapper, shall, on or before
the 15th day of each calendar month, file a return with the
Department, showing the quantity of cigarettes manufactured

during the preceding calendar month, the quantity of
cigarettes brought into this State or caused to be brought
into this State from outside this State during the preceding
calendar month without authorized evidence on the original
packages of such cigarettes underneath the sealed transparent
wrapper thereof that the tax liability imposed by this Act has
been assumed by the out-of-State seller of such cigarettes,
the quantity of cigarettes purchased tax-paid during the
preceding calendar month either within or outside this State,
the quantity of cigarettes sold by manufacturer
representatives on behalf of the distributor, the quantity of
cigarettes sold to manufacturer representatives, and the
quantity of cigarettes sold or otherwise disposed of during
the preceding calendar month. Such return shall be filed upon
forms furnished and prescribed by the Department and shall
contain such other information as the Department may
reasonably require. Information that the Department may
reasonably require includes information related to the uniform
regulation and taxation of cigarettes. The Department may
promulgate rules to require that the distributor's return be
accompanied by appropriate computer-generated magnetic media
supporting schedule data in the format required by the
Department, unless, as provided by rule, the Department grants
an exception upon petition of a distributor.
Illinois manufacturers of cigarettes in original packages
which are contained inside a sealed transparent wrapper shall

file a return by the 5th day of each month covering the
preceding calendar month. Each such return shall be
accompanied by the appropriate remittance for tax as provided
in Section 3 of this Act. Each such return shall show the
quantity of such cigarettes manufactured during the period
covered by the return, the quantity of cigarettes sold or
otherwise disposed of during the period covered by the return
and such other information as the Department may lawfully
require. Information that the Department may lawfully require
includes information related to the uniform regulation and
taxation of cigarettes. Such returns shall be filed on forms
prescribed and furnished by the Department. Each such return
shall be accompanied by a copy of each invoice rendered by such
manufacturer to any purchaser to whom such manufacturer
delivered cigarettes (or caused cigarettes to be delivered)
during the period covered by the return. The Department may
promulgate rules to require that the manufacturer's return be
accompanied by appropriate computer-generated magnetic media
supporting schedule data in the format required by the
Department, unless, as provided by rule, the Department grants
an exception upon petition of a manufacturer.
(Source: P.A. 97-587, eff. 8-26-11.)
(35 ILCS 130/9e)
Sec. 9e. Secondary distributors; reports. Every secondary
distributor who is required to procure a license under this

Act shall, on or before the 15th day of each calendar month,
file a report with the Department, showing the quantity of
cigarettes purchased during the preceding calendar month
either within or outside this State, and the quantity of
cigarettes sold to retailers or otherwise disposed of during
the preceding calendar month. Such reports shall be filed
electronically in such form prescribed by the Department and
shall contain such other information as the Department may
reasonably require. Information that the Department may
reasonably require includes information related to the uniform
regulation and taxation of cigarettes. The secondary
distributor's report shall be accompanied by appropriate
computer generated magnetic media supporting schedule data in
the format required by the Department, unless, as provided by
rule, the Department grants an exception upon petition of a
secondary distributor.
A certification by the Director of the Department that a
report has not been filed, or that information has not been
supplied pursuant to the provisions of this Act, shall be
prima facie evidence thereof.
(Source: P.A. 96-1027, eff. 7-12-10.)
(35 ILCS 130/9f)
Sec. 9f. Manufacturer representatives; reports. Every
manufacturer with authority to maintain manufacturer
representatives as defined by Section 4f of this Act shall, on

or before the 15th day of each calendar month, file a report
with the Department, showing the quantity of cigarettes
purchased from licensed distributors during the preceding
calendar month, either within or outside this State, and the
quantity of cigarettes sold to retailers or otherwise disposed
of during the preceding calendar month. Such reports shall be
filed in the form prescribed by the Department and shall
contain such other information as the Department may
reasonably require. Information that the Department may
reasonably require includes information related to the uniform
regulation and taxation of cigarettes. The report shall be
filed electronically and be accompanied by appropriate
computer generated magnetic media supporting schedule data in
the format required by the Department, unless, as provided by
rule, the Department grants an exception upon petition of a
manufacturer with authority to maintain manufacturer
representatives in this State.
A certification by the Director of the Department that a
report has not been filed, or that information has not been
supplied pursuant to the provisions of this Act, shall be
prima facie evidence thereof.
(Source: P.A. 97-587, eff. 8-26-11.)
Section 80-10. The Cigarette Use Tax Act is amended by
changing Sections 11 and 11a as follows:

(35 ILCS 135/11) (from Ch. 120, par. 453.41)
Sec. 11. Return by distributor or manufacturer. Every
distributor, who is required or authorized to collect tax
under this Act, but who is not a manufacturer of cigarettes in
original packages which are contained in a sealed transparent
wrapper, shall, on or before the 15th day of each calendar
month, file a return with the Department, showing such
information as the Department may reasonably require.
Information that the Department may reasonably require
includes information related to the uniform regulation and
taxation of cigarettes. The Department may promulgate rules to
require that the distributor's return be accompanied by
appropriate computer-generated magnetic media supporting
schedule data in the format required by the Department,
unless, as provided by rule, the Department grants an
exception upon petition of a distributor.
Illinois manufacturers of cigarettes in original packages
which are contained inside a sealed transparent wrapper shall
file a return by the 5th day of each month covering the
preceding calendar month. Each such return shall be
accompanied by the appropriate remittance for tax as provided
in Section 3 of this Act. Each such return shall disclose such
information as the Department may lawfully require.
Information that the Department may lawfully require includes
information related to the uniform regulation and taxation of
cigarettes. Each such return shall be accompanied by a copy of

each invoice rendered by such manufacturer to any purchaser to
whom such manufacturer delivered cigarettes (or caused
cigarettes to be delivered) during the period covered by the
return. The Department may promulgate rules to require that
the manufacturer's return be accompanied by appropriate
computer-generated magnetic media supporting schedule data in
the format required by the Department, unless, as provided by
rule, the Department grants an exception upon petition of a
manufacturer.
No distributor shall be required to return information to
the extent to which the reporting of such information would be
a duplication of such distributor's reporting of information
in any return which he is required to file with the Department
under the Cigarette Tax Act. Returns shall be filed on forms
prescribed by the Department.
(Source: P.A. 92-322, eff. 1-1-02.)
(35 ILCS 135/11a)
Sec. 11a. Secondary distributors; reports. Every secondary
distributor who is required to procure, or is authorized to
procure, a license under this Act shall, on or before the 15th
day of each calendar month, file a report with the Department,
showing the quantity of cigarettes purchased during the
preceding calendar month either within or outside this State,
and the quantity of cigarettes sold to Illinois retailers or
otherwise disposed of during the preceding calendar month.

Such reports shall be filed electronically in such form
prescribed by the Department and shall contain such other
information as the Department may reasonably require.
Information that the Department may reasonably require
includes information related to the uniform regulation and
taxation of cigarettes. The secondary distributor's report
shall be accompanied by appropriate computer generated
magnetic media supporting schedule data in the format required
by the Department, unless, as provided by rule, the Department
grants an exception upon petition of a secondary distributor.
A certification by the Director of the Department that a
report has not been filed, or that information has not been
supplied pursuant to the provisions of this Act, shall be
prima facie evidence thereof.
(Source: P.A. 96-1027, eff. 7-12-10.)
Section 80-15. The Tobacco Products Tax Act of 1995 is
amended by changing Section 10-30 as follows:
(35 ILCS 143/10-30)
Sec. 10-30. Returns.
(a) Every distributor shall, on or before the 15th day of
each month, file a return with the Department covering the
preceding calendar month. The return shall disclose the
wholesale price for all tobacco products other than moist
snuff and the quantity in ounces of moist snuff sold or

otherwise disposed of and other information that the
Department may reasonably require. Information that the
Department may reasonably require includes information related
to the uniform regulation and taxation of tobacco products.
The return shall be filed upon a form prescribed and furnished
by the Department.
(b) In addition to the information required under
subsection (a), on or before the 15th day of each month,
covering the preceding calendar month, each stamping
distributor shall, on forms prescribed and furnished by the
Department, report the quantity of little cigars sold or
otherwise disposed of, including the number of packages of
little cigars sold or disposed of during the month containing
20 or 25 little cigars.
(c) At the time when any return of any distributor is due
to be filed with the Department, the distributor shall also
remit to the Department the tax liability that the distributor
has incurred for transactions occurring in the preceding
calendar month.
(d) The Department may adopt rules to require the
electronic filing of any return or document required to be
filed under this Act. Those rules may provide for exceptions
from the filing requirement set forth in this paragraph for
persons who demonstrate that they do not have access to the
Internet and petition the Department to waive the electronic
filing requirement.

(e) If any payment provided for in this Section exceeds
the distributor's liabilities under this Act, as shown on an
original return, the distributor may credit such excess
payment against liability subsequently to be remitted to the
Department under this Act, in accordance with reasonable rules
adopted by the Department.
(Source: P.A. 100-1171, eff. 1-4-19.)
ARTICLE 85.
Section 85-5. The Illinois Income Tax Act is amended by
changing Section 304 as follows:
(35 ILCS 5/304) (from Ch. 120, par. 3-304)
Sec. 304. Business income of persons other than residents.
(a) In general. The business income of a person other than
a resident shall be allocated to this State if such person's
business income is derived solely from this State. If a person
other than a resident derives business income from this State
and one or more other states, then, for tax years ending on or
before December 30, 1998, and except as otherwise provided by
this Section, such person's business income shall be
apportioned to this State by multiplying the income by a
fraction, the numerator of which is the sum of the property
factor (if any), the payroll factor (if any) and 200% of the
sales factor (if any), and the denominator of which is 4

reduced by the number of factors other than the sales factor
which have a denominator of zero and by an additional 2 if the
sales factor has a denominator of zero. For tax years ending on
or after December 31, 1998, and except as otherwise provided
by this Section, persons other than residents who derive
business income from this State and one or more other states
shall compute their apportionment factor by weighting their
property, payroll, and sales factors as provided in subsection
(h) of this Section.
(1) Property factor.
(A) The property factor is a fraction, the numerator
of which is the average value of the person's real and
tangible personal property owned or rented and used in the
trade or business in this State during the taxable year
and the denominator of which is the average value of all
the person's real and tangible personal property owned or
rented and used in the trade or business during the
taxable year.
(B) Property owned by the person is valued at its
original cost. Property rented by the person is valued at
8 times the net annual rental rate. Net annual rental rate
is the annual rental rate paid by the person less any
annual rental rate received by the person from
sub-rentals.
(C) The average value of property shall be determined
by averaging the values at the beginning and ending of the

taxable year, but the Director may require the averaging
of monthly values during the taxable year if reasonably
required to reflect properly the average value of the
person's property.
(2) Payroll factor.
(A) The payroll factor is a fraction, the numerator of
which is the total amount paid in this State during the
taxable year by the person for compensation, and the
denominator of which is the total compensation paid
everywhere during the taxable year.
(B) Compensation is paid in this State if:
(i) The individual's service is performed entirely
within this State;
(ii) The individual's service is performed both
within and without this State, but the service
performed without this State is incidental to the
individual's service performed within this State; or
(iii) For tax years ending prior to December 31,
2020, some of the service is performed within this
State and either the base of operations, or if there is
no base of operations, the place from which the
service is directed or controlled is within this
State, or the base of operations or the place from
which the service is directed or controlled is not in
any state in which some part of the service is
performed, but the individual's residence is in this

State. For tax years ending on or after December 31,
2020, compensation is paid in this State if some of the
individual's service is performed within this State,
the individual's service performed within this State
is nonincidental to the individual's service performed
without this State, and the individual's service is
performed within this State for more than 30 working
days during the tax year. The amount of compensation
paid in this State shall include the portion of the
individual's total compensation for services performed
on behalf of his or her employer during the tax year
which the number of working days spent within this
State during the tax year bears to the total number of
working days spent both within and without this State
during the tax year. For purposes of this paragraph:
(a) The term "working day" means all days
during the tax year in which the individual
performs duties on behalf of his or her employer.
All days in which the individual performs no
duties on behalf of his or her employer (e.g.,
weekends, vacation days, sick days, and holidays)
are not working days.
(b) A working day is spent within this State
if:
(1) the individual performs service on
behalf of the employer and a greater amount of

time on that day is spent by the individual
performing duties on behalf of the employer
within this State, without regard to time
spent traveling, than is spent performing
duties on behalf of the employer without this
State; or
(2) the only service the individual
performs on behalf of the employer on that day
is traveling to a destination within this
State, and the individual arrives on that day.
(c) Working days spent within this State do
not include any day in which the employee is
performing services in this State during a
disaster period solely in response to a request
made to his or her employer by the government of
this State, by any political subdivision of this
State, or by a person conducting business in this
State to perform disaster or emergency-related
services in this State. For purposes of this item
(c):
"Declared State disaster or emergency"
means a disaster or emergency event (i) for
which a Governor's proclamation of a state of
emergency has been issued or (ii) for which a
Presidential declaration of a federal major
disaster or emergency has been issued.

"Disaster period" means a period that
begins 10 days prior to the date of the
Governor's proclamation or the President's
declaration (whichever is earlier) and extends
for a period of 60 calendar days after the end
of the declared disaster or emergency period.
"Disaster or emergency-related services"
means repairing, renovating, installing,
building, or rendering services or conducting
other business activities that relate to
infrastructure that has been damaged,
impaired, or destroyed by the declared State
disaster or emergency.
"Infrastructure" means property and
equipment owned or used by a public utility,
communications network, broadband and internet
service provider, cable and video service
provider, electric or gas distribution system,
or water pipeline that provides service to
more than one customer or person, including
related support facilities. "Infrastructure"
includes, but is not limited to, real and
personal property such as buildings, offices,
power lines, cable lines, poles,
communications lines, pipes, structures, and
equipment.

(iv) Compensation paid to nonresident professional
athletes.
(a) General. The Illinois source income of a
nonresident individual who is a member of a
professional athletic team includes the portion of the
individual's total compensation for services performed
as a member of a professional athletic team during the
taxable year which the number of duty days spent
within this State performing services for the team in
any manner during the taxable year bears to the total
number of duty days spent both within and without this
State during the taxable year.
(b) Travel days. Travel days that do not involve
either a game, practice, team meeting, or other
similar team event are not considered duty days spent
in this State. However, such travel days are
considered in the total duty days spent both within
and without this State.
(c) Definitions. For purposes of this subpart
(iv):
(1) The term "professional athletic team"
includes, but is not limited to, any professional
baseball, basketball, football, soccer, or hockey
team.
(2) The term "member of a professional
athletic team" includes those employees who are

active players, players on the disabled list, and
any other persons required to travel and who
travel with and perform services on behalf of a
professional athletic team on a regular basis.
This includes, but is not limited to, coaches,
managers, and trainers.
(3) Except as provided in items (C) and (D) of
this subpart (3), the term "duty days" means all
days during the taxable year from the beginning of
the professional athletic team's official
pre-season training period through the last game
in which the team competes or is scheduled to
compete. Duty days shall be counted for the year
in which they occur, including where a team's
official pre-season training period through the
last game in which the team competes or is
scheduled to compete, occurs during more than one
tax year.
(A) Duty days shall also include days on
which a member of a professional athletic team
performs service for a team on a date that
does not fall within the foregoing period
(e.g., participation in instructional leagues,
the "All Star Game", or promotional
"caravans"). Performing a service for a
professional athletic team includes conducting

training and rehabilitation activities, when
such activities are conducted at team
facilities.
(B) Also included in duty days are game
days, practice days, days spent at team
meetings, promotional caravans, preseason
training camps, and days served with the team
through all post-season games in which the
team competes or is scheduled to compete.
(C) Duty days for any person who joins a
team during the period from the beginning of
the professional athletic team's official
pre-season training period through the last
game in which the team competes, or is
scheduled to compete, shall begin on the day
that person joins the team. Conversely, duty
days for any person who leaves a team during
this period shall end on the day that person
leaves the team. Where a person switches teams
during a taxable year, a separate duty-day
calculation shall be made for the period the
person was with each team.
(D) Days for which a member of a
professional athletic team is not compensated
and is not performing services for the team in
any manner, including days when such member of

a professional athletic team has been
suspended without pay and prohibited from
performing any services for the team, shall
not be treated as duty days.
(E) Days for which a member of a
professional athletic team is on the disabled
list and does not conduct rehabilitation
activities at facilities of the team, and is
not otherwise performing services for the team
in Illinois, shall not be considered duty days
spent in this State. All days on the disabled
list, however, are considered to be included
in total duty days spent both within and
without this State.
(4) The term "total compensation for services
performed as a member of a professional athletic
team" means the total compensation received during
the taxable year for services performed:
(A) from the beginning of the official
pre-season training period through the last
game in which the team competes or is
scheduled to compete during that taxable year;
and
(B) during the taxable year on a date
which does not fall within the foregoing
period (e.g., participation in instructional

leagues, the "All Star Game", or promotional
caravans).
This compensation shall include, but is not
limited to, salaries, wages, bonuses as described
in this subpart, and any other type of
compensation paid during the taxable year to a
member of a professional athletic team for
services performed in that year. This compensation
does not include strike benefits, severance pay,
termination pay, contract or option year buy-out
payments, expansion or relocation payments, or any
other payments not related to services performed
for the team.
For purposes of this subparagraph, "bonuses"
included in "total compensation for services
performed as a member of a professional athletic
team" subject to the allocation described in
Section 302(c)(1) are: bonuses earned as a result
of play (i.e., performance bonuses) during the
season, including bonuses paid for championship,
playoff or "bowl" games played by a team, or for
selection to all-star league or other honorary
positions; and bonuses paid for signing a
contract, unless the payment of the signing bonus
is not conditional upon the signee playing any
games for the team or performing any subsequent

services for the team or even making the team, the
signing bonus is payable separately from the
salary and any other compensation, and the signing
bonus is nonrefundable.
(3) Sales factor.
(A) The sales factor is a fraction, the numerator of
which is the total sales of the person in this State during
the taxable year, and the denominator of which is the
total sales of the person everywhere during the taxable
year.
(B) Sales of tangible personal property are in this
State if:
(i) The property is delivered or shipped to a
purchaser, other than the United States government,
within this State regardless of the f. o. b. point or
other conditions of the sale; or
(ii) The property is shipped from an office,
store, warehouse, factory or other place of storage in
this State and either the purchaser is the United
States government or the person is not taxable in the
state of the purchaser; provided, however, that
premises owned or leased by a person who has
independently contracted with the seller for the
printing of newspapers, periodicals or books shall not
be deemed to be an office, store, warehouse, factory
or other place of storage for purposes of this

Section. Sales of tangible personal property are not
in this State if the seller and purchaser would be
members of the same unitary business group but for the
fact that either the seller or purchaser is a person
with 80% or more of total business activity outside of
the United States and the property is purchased for
resale.
(B-1) Patents, copyrights, trademarks, and similar
items of intangible personal property.
(i) Gross receipts from the licensing, sale, or
other disposition of a patent, copyright, trademark,
or similar item of intangible personal property, other
than gross receipts governed by paragraph (B-7) of
this item (3), are in this State to the extent the item
is utilized in this State during the year the gross
receipts are included in gross income.
(ii) Place of utilization.
(I) A patent is utilized in a state to the
extent that it is employed in production,
fabrication, manufacturing, or other processing in
the state or to the extent that a patented product
is produced in the state. If a patent is utilized
in more than one state, the extent to which it is
utilized in any one state shall be a fraction
equal to the gross receipts of the licensee or
purchaser from sales or leases of items produced,

fabricated, manufactured, or processed within that
state using the patent and of patented items
produced within that state, divided by the total
of such gross receipts for all states in which the
patent is utilized.
(II) A copyright is utilized in a state to the
extent that printing or other publication
originates in the state. If a copyright is
utilized in more than one state, the extent to
which it is utilized in any one state shall be a
fraction equal to the gross receipts from sales or
licenses of materials printed or published in that
state divided by the total of such gross receipts
for all states in which the copyright is utilized.
(III) Trademarks and other items of intangible
personal property governed by this paragraph (B-1)
are utilized in the state in which the commercial
domicile of the licensee or purchaser is located.
(iii) If the state of utilization of an item of
property governed by this paragraph (B-1) cannot be
determined from the taxpayer's books and records or
from the books and records of any person related to the
taxpayer within the meaning of Section 267(b) of the
Internal Revenue Code, 26 U.S.C. 267, the gross
receipts attributable to that item shall be excluded
from both the numerator and the denominator of the

sales factor.
(B-2) Gross receipts from the license, sale, or other
disposition of patents, copyrights, trademarks, and
similar items of intangible personal property, other than
gross receipts governed by paragraph (B-7) of this item
(3), may be included in the numerator or denominator of
the sales factor only if gross receipts from licenses,
sales, or other disposition of such items comprise more
than 50% of the taxpayer's total gross receipts included
in gross income during the tax year and during each of the
2 immediately preceding tax years; provided that, when a
taxpayer is a member of a unitary business group, such
determination shall be made on the basis of the gross
receipts of the entire unitary business group.
(B-5) For taxable years ending on or after December
31, 2008, except as provided in subsections (ii) through
(vii), receipts from the sale of telecommunications
service or mobile telecommunications service are in this
State if the customer's service address is in this State.
(i) For purposes of this subparagraph (B-5), the
following terms have the following meanings:
"Ancillary services" means services that are
associated with or incidental to the provision of
"telecommunications services", including, but not
limited to, "detailed telecommunications billing",
"directory assistance", "vertical service", and "voice

mail services".
"Air-to-Ground Radiotelephone service" means a
radio service, as that term is defined in 47 CFR 22.99,
in which common carriers are authorized to offer and
provide radio telecommunications service for hire to
subscribers in aircraft.
"Call-by-call Basis" means any method of charging
for telecommunications services where the price is
measured by individual calls.
"Communications Channel" means a physical or
virtual path of communications over which signals are
transmitted between or among customer channel
termination points.
"Conference bridging service" means an "ancillary
service" that links two or more participants of an
audio or video conference call and may include the
provision of a telephone number. "Conference bridging
service" does not include the "telecommunications
services" used to reach the conference bridge.
"Customer Channel Termination Point" means the
location where the customer either inputs or receives
the communications.
"Detailed telecommunications billing service"
means an "ancillary service" of separately stating
information pertaining to individual calls on a
customer's billing statement.

"Directory assistance" means an "ancillary
service" of providing telephone number information,
and/or address information.
"Home service provider" means the facilities based
carrier or reseller with which the customer contracts
for the provision of mobile telecommunications
services.
"Mobile telecommunications service" means
commercial mobile radio service, as defined in Section
20.3 of Title 47 of the Code of Federal Regulations as
in effect on June 1, 1999.
"Place of primary use" means the street address
representative of where the customer's use of the
telecommunications service primarily occurs, which
must be the residential street address or the primary
business street address of the customer. In the case
of mobile telecommunications services, "place of
primary use" must be within the licensed service area
of the home service provider.
"Post-paid telecommunication service" means the
telecommunications service obtained by making a
payment on a call-by-call basis either through the use
of a credit card or payment mechanism such as a bank
card, travel card, credit card, or debit card, or by
charge made to a telephone number which is not
associated with the origination or termination of the

telecommunications service. A post-paid calling
service includes telecommunications service, except a
prepaid wireless calling service, that would be a
prepaid calling service except it is not exclusively a
telecommunication service.
"Prepaid telecommunication service" means the
right to access exclusively telecommunications
services, which must be paid for in advance and which
enables the origination of calls using an access
number or authorization code, whether manually or
electronically dialed, and that is sold in
predetermined units or dollars of which the number
declines with use in a known amount.
"Prepaid Mobile telecommunication service" means a
telecommunications service that provides the right to
utilize mobile wireless service as well as other
non-telecommunication services, including, but not
limited to, ancillary services, which must be paid for
in advance that is sold in predetermined units or
dollars of which the number declines with use in a
known amount.
"Private communication service" means a
telecommunication service that entitles the customer
to exclusive or priority use of a communications
channel or group of channels between or among
termination points, regardless of the manner in which

such channel or channels are connected, and includes
switching capacity, extension lines, stations, and any
other associated services that are provided in
connection with the use of such channel or channels.
"Service address" means:
(a) The location of the telecommunications
equipment to which a customer's call is charged
and from which the call originates or terminates,
regardless of where the call is billed or paid;
(b) If the location in line (a) is not known,
service address means the origination point of the
signal of the telecommunications services first
identified by either the seller's
telecommunications system or in information
received by the seller from its service provider
where the system used to transport such signals is
not that of the seller; and
(c) If the locations in line (a) and line (b)
are not known, the service address means the
location of the customer's place of primary use.
"Telecommunications service" means the electronic
transmission, conveyance, or routing of voice, data,
audio, video, or any other information or signals to a
point, or between or among points. The term
"telecommunications service" includes such
transmission, conveyance, or routing in which computer

processing applications are used to act on the form,
code or protocol of the content for purposes of
transmission, conveyance or routing without regard to
whether such service is referred to as voice over
Internet protocol services or is classified by the
Federal Communications Commission as enhanced or value
added. "Telecommunications service" does not include:
(a) Data processing and information services
that allow data to be generated, acquired, stored,
processed, or retrieved and delivered by an
electronic transmission to a purchaser when such
purchaser's primary purpose for the underlying
transaction is the processed data or information;
(b) Installation or maintenance of wiring or
equipment on a customer's premises;
(c) Tangible personal property;
(d) Advertising, including, but not limited
to, directory advertising;
(e) Billing and collection services provided
to third parties;
(f) Internet access service;
(g) Radio and television audio and video
programming services, regardless of the medium,
including the furnishing of transmission,
conveyance and routing of such services by the
programming service provider. Radio and television

audio and video programming services shall
include, but not be limited to, cable service as
defined in 47 USC 522(6) and audio and video
programming services delivered by commercial
mobile radio service providers, as defined in 47
CFR 20.3;
(h) "Ancillary services"; or
(i) Digital products "delivered
electronically", including, but not limited to,
software, music, video, reading materials or ring
tones.
"Vertical service" means an "ancillary service"
that is offered in connection with one or more
"telecommunications services", which offers advanced
calling features that allow customers to identify
callers and to manage multiple calls and call
connections, including "conference bridging services".
"Voice mail service" means an "ancillary service"
that enables the customer to store, send or receive
recorded messages. "Voice mail service" does not
include any "vertical services" that the customer may
be required to have in order to utilize the "voice mail
service".
(ii) Receipts from the sale of telecommunications
service sold on an individual call-by-call basis are
in this State if either of the following applies:

(a) The call both originates and terminates in
this State.
(b) The call either originates or terminates
in this State and the service address is located
in this State.
(iii) Receipts from the sale of postpaid
telecommunications service at retail are in this State
if the origination point of the telecommunication
signal, as first identified by the service provider's
telecommunication system or as identified by
information received by the seller from its service
provider if the system used to transport
telecommunication signals is not the seller's, is
located in this State.
(iv) Receipts from the sale of prepaid
telecommunications service or prepaid mobile
telecommunications service at retail are in this State
if the purchaser obtains the prepaid card or similar
means of conveyance at a location in this State.
Receipts from recharging a prepaid telecommunications
service or mobile telecommunications service is in
this State if the purchaser's billing information
indicates a location in this State.
(v) Receipts from the sale of private
communication services are in this State as follows:
(a) 100% of receipts from charges imposed at

each channel termination point in this State.
(b) 100% of receipts from charges for the
total channel mileage between each channel
termination point in this State.
(c) 50% of the total receipts from charges for
service segments when those segments are between 2
customer channel termination points, 1 of which is
located in this State and the other is located
outside of this State, which segments are
separately charged.
(d) The receipts from charges for service
segments with a channel termination point located
in this State and in two or more other states, and
which segments are not separately billed, are in
this State based on a percentage determined by
dividing the number of customer channel
termination points in this State by the total
number of customer channel termination points.
(vi) Receipts from charges for ancillary services
for telecommunications service sold to customers at
retail are in this State if the customer's primary
place of use of telecommunications services associated
with those ancillary services is in this State. If the
seller of those ancillary services cannot determine
where the associated telecommunications are located,
then the ancillary services shall be based on the

location of the purchaser.
(vii) Receipts to access a carrier's network or
from the sale of telecommunication services or
ancillary services for resale are in this State as
follows:
(a) 100% of the receipts from access fees
attributable to intrastate telecommunications
service that both originates and terminates in
this State.
(b) 50% of the receipts from access fees
attributable to interstate telecommunications
service if the interstate call either originates
or terminates in this State.
(c) 100% of the receipts from interstate end
user access line charges, if the customer's
service address is in this State. As used in this
subdivision, "interstate end user access line
charges" includes, but is not limited to, the
surcharge approved by the federal communications
commission and levied pursuant to 47 CFR 69.
(d) Gross receipts from sales of
telecommunication services or from ancillary
services for telecommunications services sold to
other telecommunication service providers for
resale shall be sourced to this State using the
apportionment concepts used for non-resale

receipts of telecommunications services if the
information is readily available to make that
determination. If the information is not readily
available, then the taxpayer may use any other
reasonable and consistent method.
(B-7) For taxable years ending on or after December
31, 2008, receipts from the sale of broadcasting services
are in this State if the broadcasting services are
received in this State. For purposes of this paragraph
(B-7), the following terms have the following meanings:
"Advertising revenue" means consideration received
by the taxpayer in exchange for broadcasting services
or allowing the broadcasting of commercials or
announcements in connection with the broadcasting of
film or radio programming, from sponsorships of the
programming, or from product placements in the
programming.
"Audience factor" means the ratio that the
audience or subscribers located in this State of a
station, a network, or a cable system bears to the
total audience or total subscribers for that station,
network, or cable system. The audience factor for film
or radio programming shall be determined by reference
to the books and records of the taxpayer or by
reference to published rating statistics provided the
method used by the taxpayer is consistently used from

year to year for this purpose and fairly represents
the taxpayer's activity in this State.
"Broadcast" or "broadcasting" or "broadcasting
services" means the transmission or provision of film
or radio programming, whether through the public
airwaves, by cable, by direct or indirect satellite
transmission, or by any other means of communication,
either through a station, a network, or a cable
system.
"Film" or "film programming" means the broadcast
on television of any and all performances, events, or
productions, including, but not limited to, news,
sporting events, plays, stories, or other literary,
commercial, educational, or artistic works, either
live or through the use of video tape, disc, or any
other type of format or medium. Each episode of a
series of films produced for television shall
constitute separate "film" notwithstanding that the
series relates to the same principal subject and is
produced during one or more tax periods.
"Radio" or "radio programming" means the broadcast
on radio of any and all performances, events, or
productions, including, but not limited to, news,
sporting events, plays, stories, or other literary,
commercial, educational, or artistic works, either
live or through the use of an audio tape, disc, or any

other format or medium. Each episode in a series of
radio programming produced for radio broadcast shall
constitute a separate "radio programming"
notwithstanding that the series relates to the same
principal subject and is produced during one or more
tax periods.
(i) In the case of advertising revenue from
broadcasting, the customer is the advertiser and
the service is received in this State if the
commercial domicile of the advertiser is in this
State.
(ii) In the case where film or radio
programming is broadcast by a station, a network,
or a cable system for a fee or other remuneration
received from the recipient of the broadcast, the
portion of the service that is received in this
State is measured by the portion of the recipients
of the broadcast located in this State.
Accordingly, the fee or other remuneration for
such service that is included in the Illinois
numerator of the sales factor is the total of
those fees or other remuneration received from
recipients in Illinois. For purposes of this
paragraph, a taxpayer may determine the location
of the recipients of its broadcast using the
address of the recipient shown in its contracts

with the recipient or using the billing address of
the recipient in the taxpayer's records.
(iii) In the case where film or radio
programming is broadcast by a station, a network,
or a cable system for a fee or other remuneration
from the person providing the programming, the
portion of the broadcast service that is received
by such station, network, or cable system in this
State is measured by the portion of recipients of
the broadcast located in this State. Accordingly,
the amount of revenue related to such an
arrangement that is included in the Illinois
numerator of the sales factor is the total fee or
other total remuneration from the person providing
the programming related to that broadcast
multiplied by the Illinois audience factor for
that broadcast.
(iv) In the case where film or radio
programming is provided by a taxpayer that is a
network or station to a customer for broadcast in
exchange for a fee or other remuneration from that
customer the broadcasting service is received at
the location of the office of the customer from
which the services were ordered in the regular
course of the customer's trade or business.
Accordingly, in such a case the revenue derived by

the taxpayer that is included in the taxpayer's
Illinois numerator of the sales factor is the
revenue from such customers who receive the
broadcasting service in Illinois.
(v) In the case where film or radio
programming is provided by a taxpayer that is not
a network or station to another person for
broadcasting in exchange for a fee or other
remuneration from that person, the broadcasting
service is received at the location of the office
of the customer from which the services were
ordered in the regular course of the customer's
trade or business. Accordingly, in such a case the
revenue derived by the taxpayer that is included
in the taxpayer's Illinois numerator of the sales
factor is the revenue from such customers who
receive the broadcasting service in Illinois.
(B-8) Gross receipts from winnings under the Illinois
Lottery Law from the assignment of a prize under Section
13.1 of the Illinois Lottery Law are received in this
State. This paragraph (B-8) applies only to taxable years
ending on or after December 31, 2013.
(B-9) For taxable years ending on or after December
31, 2019, gross receipts from winnings from pari-mutuel
wagering conducted at a wagering facility licensed under
the Illinois Horse Racing Act of 1975 or from winnings

from gambling games conducted on a riverboat or in a
casino or organization gaming facility licensed under the
Illinois Gambling Act are in this State.
(B-10) For taxable years ending on or after December
31, 2021, gross receipts from winnings from sports
wagering conducted in accordance with the Sports Wagering
Act are in this State.
(C) For taxable years ending before December 31, 2008,
sales, other than sales governed by paragraphs (B), (B-1),
(B-2), and (B-8) are in this State if:
(i) The income-producing activity is performed in
this State; or
(ii) The income-producing activity is performed
both within and without this State and a greater
proportion of the income-producing activity is
performed within this State than without this State,
based on performance costs.
(C-5) For taxable years ending on or after December
31, 2008, sales, other than sales governed by paragraphs
(B), (B-1), (B-2), (B-5), and (B-7), are in this State if
any of the following criteria are met:
(i) Sales from the sale or lease of real property
are in this State if the property is located in this
State.
(ii) Sales from the lease or rental of tangible
personal property are in this State if the property is

located in this State during the rental period. Sales
from the lease or rental of tangible personal property
that is characteristically moving property, including,
but not limited to, motor vehicles, rolling stock,
aircraft, vessels, or mobile equipment are in this
State to the extent that the property is used in this
State.
(iii) In the case of interest, net gains (but not
less than zero) and other items of income from
intangible personal property, the sale is in this
State if:
(a) in the case of a taxpayer who is a dealer
in the item of intangible personal property within
the meaning of Section 475 of the Internal Revenue
Code, the income or gain is received from a
customer in this State. For purposes of this
subparagraph, a customer is in this State if the
customer is an individual, trust or estate who is
a resident of this State and, for all other
customers, if the customer's commercial domicile
is in this State. Unless the dealer has actual
knowledge of the residence or commercial domicile
of a customer during a taxable year, the customer
shall be deemed to be a customer in this State if
the billing address of the customer, as shown in
the records of the dealer, is in this State; or

(b) in all other cases, if the
income-producing activity of the taxpayer is
performed in this State or, if the
income-producing activity of the taxpayer is
performed both within and without this State, if a
greater proportion of the income-producing
activity of the taxpayer is performed within this
State than in any other state, based on
performance costs.
(iv) Sales of services are in this State if the
services are received in this State. For the purposes
of this section, gross receipts from the performance
of services provided to a corporation, partnership, or
trust may only be attributed to a state where that
corporation, partnership, or trust has a fixed place
of business. If the state where the services are
received is not readily determinable or is a state
where the corporation, partnership, or trust receiving
the service does not have a fixed place of business,
the services shall be deemed to be received at the
location of the office of the customer from which the
services were ordered in the regular course of the
customer's trade or business. If the ordering office
cannot be determined, the services shall be deemed to
be received at the office of the customer to which the
services are billed. If the taxpayer is not taxable in

the state in which the services are received, the sale
must be excluded from both the numerator and the
denominator of the sales factor. The Department shall
adopt rules prescribing where specific types of
service are received, including, but not limited to,
publishing, and utility service.
(D) For taxable years ending on or after December 31,
1995, the following items of income shall not be included
in the numerator or denominator of the sales factor:
dividends; amounts included under Section 78 of the
Internal Revenue Code; and Subpart F income as defined in
Section 952 of the Internal Revenue Code. No inference
shall be drawn from the enactment of this paragraph (D) in
construing this Section for taxable years ending before
December 31, 1995.
(E) Paragraphs (B-1) and (B-2) shall apply to tax
years ending on or after December 31, 1999, provided that
a taxpayer may elect to apply the provisions of these
paragraphs to prior tax years. Such election shall be made
in the form and manner prescribed by the Department, shall
be irrevocable, and shall apply to all tax years; provided
that, if a taxpayer's Illinois income tax liability for
any tax year, as assessed under Section 903 prior to
January 1, 1999, was computed in a manner contrary to the
provisions of paragraphs (B-1) or (B-2), no refund shall
be payable to the taxpayer for that tax year to the extent

such refund is the result of applying the provisions of
paragraph (B-1) or (B-2) retroactively. In the case of a
unitary business group, such election shall apply to all
members of such group for every tax year such group is in
existence, but shall not apply to any taxpayer for any
period during which that taxpayer is not a member of such
group.
(b) Insurance companies.
(1) In general. Except as otherwise provided by
paragraph (2), business income of an insurance company for
a taxable year shall be apportioned to this State by
multiplying such income by a fraction, the numerator of
which is the direct premiums written for insurance upon
property or risk in this State, and the denominator of
which is the direct premiums written for insurance upon
property or risk everywhere. For purposes of this
subsection, the term "direct premiums written" means the
total amount of direct premiums written, assessments and
annuity considerations as reported for the taxable year on
the annual statement filed by the company with the
Illinois Director of Insurance in the form approved by the
National Convention of Insurance Commissioners or such
other form as may be prescribed in lieu thereof.
(2) Reinsurance. If the principal source of premiums
written by an insurance company consists of premiums for
reinsurance accepted by it, the business income of such

company shall be apportioned to this State by multiplying
such income by a fraction, the numerator of which is the
sum of (i) direct premiums written for insurance upon
property or risk in this State, plus (ii) premiums written
for reinsurance accepted in respect of property or risk in
this State, and the denominator of which is the sum of
(iii) direct premiums written for insurance upon property
or risk everywhere, plus (iv) premiums written for
reinsurance accepted in respect of property or risk
everywhere. For purposes of this paragraph, premiums
written for reinsurance accepted in respect of property or
risk in this State, whether or not otherwise determinable,
may, at the election of the company, be determined on the
basis of the proportion which premiums written for
reinsurance accepted from companies commercially domiciled
in Illinois bears to premiums written for reinsurance
accepted from all sources, or, alternatively, in the
proportion which the sum of the direct premiums written
for insurance upon property or risk in this State by each
ceding company from which reinsurance is accepted bears to
the sum of the total direct premiums written by each such
ceding company for the taxable year. The election made by
a company under this paragraph for its first taxable year
ending on or after December 31, 2011, shall be binding for
that company for that taxable year and for all subsequent
taxable years, and may be altered only with the written

permission of the Department, which shall not be
unreasonably withheld.
(c) Financial organizations.
(1) In general. For taxable years ending before
December 31, 2008, business income of a financial
organization shall be apportioned to this State by
multiplying such income by a fraction, the numerator of
which is its business income from sources within this
State, and the denominator of which is its business income
from all sources. For the purposes of this subsection, the
business income of a financial organization from sources
within this State is the sum of the amounts referred to in
subparagraphs (A) through (E) following, but excluding the
adjusted income of an international banking facility as
determined in paragraph (2):
(A) Fees, commissions or other compensation for
financial services rendered within this State;
(B) Gross profits from trading in stocks, bonds or
other securities managed within this State;
(C) Dividends, and interest from Illinois
customers, which are received within this State;
(D) Interest charged to customers at places of
business maintained within this State for carrying
debit balances of margin accounts, without deduction
of any costs incurred in carrying such accounts; and
(E) Any other gross income resulting from the

operation as a financial organization within this
State.
In computing the amounts referred to in paragraphs (A)
through (E) of this subsection, any amount received by a
member of an affiliated group (determined under Section
1504(a) of the Internal Revenue Code but without reference
to whether any such corporation is an "includible
corporation" under Section 1504(b) of the Internal Revenue
Code) from another member of such group shall be included
only to the extent such amount exceeds expenses of the
recipient directly related thereto.
(2) International Banking Facility. For taxable years
ending before December 31, 2008:
(A) Adjusted Income. The adjusted income of an
international banking facility is its income reduced
by the amount of the floor amount.
(B) Floor Amount. The floor amount shall be the
amount, if any, determined by multiplying the income
of the international banking facility by a fraction,
not greater than one, which is determined as follows:
(i) The numerator shall be:
The average aggregate, determined on a
quarterly basis, of the financial organization's
loans to banks in foreign countries, to foreign
domiciled borrowers (except where secured
primarily by real estate) and to foreign

governments and other foreign official
institutions, as reported for its branches,
agencies and offices within the state on its
"Consolidated Report of Condition", Schedule A,
Lines 2.c., 5.b., and 7.a., which was filed with
the Federal Deposit Insurance Corporation and
other regulatory authorities, for the year 1980,
minus
The average aggregate, determined on a
quarterly basis, of such loans (other than loans
of an international banking facility), as reported
by the financial institution for its branches,
agencies and offices within the state, on the
corresponding Schedule and lines of the
Consolidated Report of Condition for the current
taxable year, provided, however, that in no case
shall the amount determined in this clause (the
subtrahend) exceed the amount determined in the
preceding clause (the minuend); and
(ii) the denominator shall be the average
aggregate, determined on a quarterly basis, of the
international banking facility's loans to banks in
foreign countries, to foreign domiciled borrowers
(except where secured primarily by real estate)
and to foreign governments and other foreign
official institutions, which were recorded in its

financial accounts for the current taxable year.
(C) Change to Consolidated Report of Condition and
in Qualification. In the event the Consolidated Report
of Condition which is filed with the Federal Deposit
Insurance Corporation and other regulatory authorities
is altered so that the information required for
determining the floor amount is not found on Schedule
A, lines 2.c., 5.b. and 7.a., the financial
institution shall notify the Department and the
Department may, by regulations or otherwise, prescribe
or authorize the use of an alternative source for such
information. The financial institution shall also
notify the Department should its international banking
facility fail to qualify as such, in whole or in part,
or should there be any amendment or change to the
Consolidated Report of Condition, as originally filed,
to the extent such amendment or change alters the
information used in determining the floor amount.
(3) For taxable years ending on or after December 31,
2008, the business income of a financial organization
shall be apportioned to this State by multiplying such
income by a fraction, the numerator of which is its gross
receipts from sources in this State or otherwise
attributable to this State's marketplace and the
denominator of which is its gross receipts everywhere
during the taxable year. "Gross receipts" for purposes of

this subparagraph (3) means gross income, including net
taxable gain on disposition of assets, including
securities and money market instruments, when derived from
transactions and activities in the regular course of the
financial organization's trade or business. The following
examples are illustrative:
(i) Receipts from the lease or rental of real or
tangible personal property are in this State if the
property is located in this State during the rental
period. Receipts from the lease or rental of tangible
personal property that is characteristically moving
property, including, but not limited to, motor
vehicles, rolling stock, aircraft, vessels, or mobile
equipment are from sources in this State to the extent
that the property is used in this State.
(ii) Interest income, commissions, fees, gains on
disposition, and other receipts from assets in the
nature of loans that are secured primarily by real
estate or tangible personal property are from sources
in this State if the security is located in this State.
(iii) Interest income, commissions, fees, gains on
disposition, and other receipts from consumer loans
that are not secured by real or tangible personal
property are from sources in this State if the debtor
is a resident of this State.
(iv) Interest income, commissions, fees, gains on

disposition, and other receipts from commercial loans
and installment obligations that are not secured by
real or tangible personal property are from sources in
this State if the proceeds of the loan are to be
applied in this State. If it cannot be determined
where the funds are to be applied, the income and
receipts are from sources in this State if the office
of the borrower from which the loan was negotiated in
the regular course of business is located in this
State. If the location of this office cannot be
determined, the income and receipts shall be excluded
from the numerator and denominator of the sales
factor.
(v) Interest income, fees, gains on disposition,
service charges, merchant discount income, and other
receipts from credit card receivables are from sources
in this State if the card charges are regularly billed
to a customer in this State.
(vi) Receipts from the performance of services,
including, but not limited to, fiduciary, advisory,
and brokerage services, are in this State if the
services are received in this State within the meaning
of subparagraph (a)(3)(C-5)(iv) of this Section.
(vii) Receipts from the issuance of travelers
checks and money orders are from sources in this State
if the checks and money orders are issued from a

location within this State.
(viii) For tax years ending before December 31,
2024, receipts Receipts from investment assets and
activities and trading assets and activities are
included in the receipts factor as follows:
(1) Interest, dividends, net gains (but not
less than zero) and other income from investment
assets and activities from trading assets and
activities shall be included in the receipts
factor. Investment assets and activities and
trading assets and activities include, but are not
limited to: investment securities; trading account
assets; federal funds; securities purchased and
sold under agreements to resell or repurchase;
options; futures contracts; forward contracts;
notional principal contracts such as swaps;
equities; and foreign currency transactions. With
respect to the investment and trading assets and
activities described in subparagraphs (A) and (B)
of this paragraph, the receipts factor shall
include the amounts described in such
subparagraphs.
(A) The receipts factor shall include the
amount by which interest from federal funds
sold and securities purchased under resale
agreements exceeds interest expense on federal

funds purchased and securities sold under
repurchase agreements.
(B) The receipts factor shall include the
amount by which interest, dividends, gains and
other income from trading assets and
activities, including, but not limited to,
assets and activities in the matched book, in
the arbitrage book, and foreign currency
transactions, exceed amounts paid in lieu of
interest, amounts paid in lieu of dividends,
and losses from such assets and activities.
(2) The numerator of the receipts factor
includes interest, dividends, net gains (but not
less than zero), and other income from investment
assets and activities and from trading assets and
activities described in paragraph (1) of this
subsection that are attributable to this State.
(A) The amount of interest, dividends, net
gains (but not less than zero), and other
income from investment assets and activities
in the investment account to be attributed to
this State and included in the numerator is
determined by multiplying all such income from
such assets and activities by a fraction, the
numerator of which is the gross income from
such assets and activities which are properly

assigned to a fixed place of business of the
taxpayer within this State and the denominator
of which is the gross income from all such
assets and activities.
(B) The amount of interest from federal
funds sold and purchased and from securities
purchased under resale agreements and
securities sold under repurchase agreements
attributable to this State and included in the
numerator is determined by multiplying the
amount described in subparagraph (A) of
paragraph (1) of this subsection from such
funds and such securities by a fraction, the
numerator of which is the gross income from
such funds and such securities which are
properly assigned to a fixed place of business
of the taxpayer within this State and the
denominator of which is the gross income from
all such funds and such securities.
(C) The amount of interest, dividends,
gains, and other income from trading assets
and activities, including, but not limited to,
assets and activities in the matched book, in
the arbitrage book and foreign currency
transactions (but excluding amounts described
in subparagraphs (A) or (B) of this

paragraph), attributable to this State and
included in the numerator is determined by
multiplying the amount described in
subparagraph (B) of paragraph (1) of this
subsection by a fraction, the numerator of
which is the gross income from such trading
assets and activities which are properly
assigned to a fixed place of business of the
taxpayer within this State and the denominator
of which is the gross income from all such
assets and activities.
(D) Properly assigned, for purposes of
this paragraph (2) of this subsection, means
the investment or trading asset or activity is
assigned to the fixed place of business with
which it has a preponderance of substantive
contacts. An investment or trading asset or
activity assigned by the taxpayer to a fixed
place of business without the State shall be
presumed to have been properly assigned if:
(i) the taxpayer has assigned, in the
regular course of its business, such asset
or activity on its records to a fixed
place of business consistent with federal
or state regulatory requirements;
(ii) such assignment on its records is

based upon substantive contacts of the
asset or activity to such fixed place of
business; and
(iii) the taxpayer uses such records
reflecting assignment of such assets or
activities for the filing of all state and
local tax returns for which an assignment
of such assets or activities to a fixed
place of business is required.
(E) The presumption of proper assignment
of an investment or trading asset or activity
provided in subparagraph (D) of paragraph (2)
of this subsection may be rebutted upon a
showing by the Department, supported by a
preponderance of the evidence, that the
preponderance of substantive contacts
regarding such asset or activity did not occur
at the fixed place of business to which it was
assigned on the taxpayer's records. If the
fixed place of business that has a
preponderance of substantive contacts cannot
be determined for an investment or trading
asset or activity to which the presumption in
subparagraph (D) of paragraph (2) of this
subsection does not apply or with respect to
which that presumption has been rebutted, that

asset or activity is properly assigned to the
state in which the taxpayer's commercial
domicile is located. For purposes of this
subparagraph (E), it shall be presumed,
subject to rebuttal, that taxpayer's
commercial domicile is in the state of the
United States or the District of Columbia to
which the greatest number of employees are
regularly connected with the management of the
investment or trading income or out of which
they are working, irrespective of where the
services of such employees are performed, as
of the last day of the taxable year.
(ix) For tax years ending on or after December 31,
2024, receipts from investment assets and activities
and trading assets and activities are included in the
receipts factor as follows:
(1) Interest, dividends, net gains (but not
less than zero), and other income from investment
assets and activities from trading assets and
activities shall be included in the receipts
factor. Investment assets and activities and
trading assets and activities include, but are not
limited to the following: investment securities;
trading account assets; federal funds; securities
purchased and sold under agreements to resell or

repurchase; options; futures contracts; forward
contracts; notional principal contracts, such as
swaps; equities; and foreign currency
transactions. With respect to the investment and
trading assets and activities described in
subparagraphs (A) and (B) of this paragraph, the
receipts factor shall include the amounts
described in those subparagraphs.
(A) The receipts factor shall include the
amount by which interest from federal funds
sold and securities purchased under resale
agreements exceeds interest expense on federal
funds purchased and securities sold under
repurchase agreements.
(B) The receipts factor shall include the
amount by which interest, dividends, gains and
other income from trading assets and
activities, including, but not limited to,
assets and activities in the matched book, in
the arbitrage book, and foreign currency
transactions, exceed amounts paid in lieu of
interest, amounts paid in lieu of dividends,
and losses from such assets and activities.
(2) The numerator of the receipts factor
includes interest, dividends, net gains (but not
less than zero), and other income from investment

assets and activities and from trading assets and
activities described in paragraph (1) of this
subsection that are attributable to this State.
(A) The amount of interest, dividends, net
gains (but not less than zero), and other
income from investment assets and activities
in the investment account to be attributed to
this State and included in the numerator is
determined by multiplying all of the income
from those assets and activities by a
fraction, the numerator of which is the total
receipts included in the numerator pursuant to
items (i) through (vii) of this subparagraph
(3) and the denominator of which is all total
receipts included in the denominator, other
than interest, dividends, net gains (but not
less than zero), and other income from
investment assets and activities and trading
assets and activities.
(B) The amount of interest from federal
funds sold and purchased and from securities
purchased under resale agreements and
securities sold under repurchase agreements
attributable to this State and included in the
numerator is determined by multiplying the
amount described in subparagraph (A) of

paragraph (1) of this subsection from such
funds and such securities by a fraction, the
numerator of which is the total receipts
included in the numerator pursuant to items
(i) through (vii) of this subparagraph (3) and
the denominator of which is all total receipts
included in the denominator, other than
interest, dividends, net gains (but not less
than zero), and other income from investment
assets and activities and trading assets and
activities.
(C) The amount of interest, dividends,
gains, and other income from trading assets
and activities, including, but not limited to,
assets and activities in the matched book, in
the arbitrage book and foreign currency
transactions (but excluding amounts described
in subparagraphs (A) or (B) of this
paragraph), attributable to this State and
included in the numerator is determined by
multiplying the amount described in
subparagraph (B) of paragraph (1) of this
subsection by a fraction, the numerator of
which is the total receipts included in the
numerator pursuant to items (i) through (vii)
of this subparagraph (3) and the denominator

of which is all total receipts included in the
denominator, other than interest, dividends,
net gains (but not less than zero), and other
income from investment assets and activities
and trading assets and activities.
(4) (Blank).
(5) (Blank).
(c-1) Federally regulated exchanges. For taxable years
ending on or after December 31, 2012, business income of a
federally regulated exchange shall, at the option of the
federally regulated exchange, be apportioned to this State by
multiplying such income by a fraction, the numerator of which
is its business income from sources within this State, and the
denominator of which is its business income from all sources.
For purposes of this subsection, the business income within
this State of a federally regulated exchange is the sum of the
following:
(1) Receipts attributable to transactions executed on
a physical trading floor if that physical trading floor is
located in this State.
(2) Receipts attributable to all other matching,
execution, or clearing transactions, including without
limitation receipts from the provision of matching,
execution, or clearing services to another entity,
multiplied by (i) for taxable years ending on or after
December 31, 2012 but before December 31, 2013, 63.77%;

and (ii) for taxable years ending on or after December 31,
2013, 27.54%.
(3) All other receipts not governed by subparagraphs
(1) or (2) of this subsection (c-1), to the extent the
receipts would be characterized as "sales in this State"
under item (3) of subsection (a) of this Section.
"Federally regulated exchange" means (i) a "registered
entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B),
or (C), (ii) an "exchange" or "clearing agency" within the
meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such
entities regulated under any successor regulatory structure to
the foregoing, and (iv) all taxpayers who are members of the
same unitary business group as a federally regulated exchange,
determined without regard to the prohibition in Section
1501(a)(27) of this Act against including in a unitary
business group taxpayers who are ordinarily required to
apportion business income under different subsections of this
Section; provided that this subparagraph (iv) shall apply only
if 50% or more of the business receipts of the unitary business
group determined by application of this subparagraph (iv) for
the taxable year are attributable to the matching, execution,
or clearing of transactions conducted by an entity described
in subparagraph (i), (ii), or (iii) of this paragraph.
In no event shall the Illinois apportionment percentage
computed in accordance with this subsection (c-1) for any
taxpayer for any tax year be less than the Illinois

apportionment percentage computed under this subsection (c-1)
for that taxpayer for the first full tax year ending on or
after December 31, 2013 for which this subsection (c-1)
applied to the taxpayer.
(d) Transportation services. For taxable years ending
before December 31, 2008, business income derived from
furnishing transportation services shall be apportioned to
this State in accordance with paragraphs (1) and (2):
(1) Such business income (other than that derived from
transportation by pipeline) shall be apportioned to this
State by multiplying such income by a fraction, the
numerator of which is the revenue miles of the person in
this State, and the denominator of which is the revenue
miles of the person everywhere. For purposes of this
paragraph, a revenue mile is the transportation of 1
passenger or 1 net ton of freight the distance of 1 mile
for a consideration. Where a person is engaged in the
transportation of both passengers and freight, the
fraction above referred to shall be determined by means of
an average of the passenger revenue mile fraction and the
freight revenue mile fraction, weighted to reflect the
person's
(A) relative railway operating income from total
passenger and total freight service, as reported to
the Interstate Commerce Commission, in the case of
transportation by railroad, and

(B) relative gross receipts from passenger and
freight transportation, in case of transportation
other than by railroad.
(2) Such business income derived from transportation
by pipeline shall be apportioned to this State by
multiplying such income by a fraction, the numerator of
which is the revenue miles of the person in this State, and
the denominator of which is the revenue miles of the
person everywhere. For the purposes of this paragraph, a
revenue mile is the transportation by pipeline of 1 barrel
of oil, 1,000 cubic feet of gas, or of any specified
quantity of any other substance, the distance of 1 mile
for a consideration.
(3) For taxable years ending on or after December 31,
2008, business income derived from providing
transportation services other than airline services shall
be apportioned to this State by using a fraction, (a) the
numerator of which shall be (i) all receipts from any
movement or shipment of people, goods, mail, oil, gas, or
any other substance (other than by airline) that both
originates and terminates in this State, plus (ii) that
portion of the person's gross receipts from movements or
shipments of people, goods, mail, oil, gas, or any other
substance (other than by airline) that originates in one
state or jurisdiction and terminates in another state or
jurisdiction, that is determined by the ratio that the

miles traveled in this State bears to total miles
everywhere and (b) the denominator of which shall be all
revenue derived from the movement or shipment of people,
goods, mail, oil, gas, or any other substance (other than
by airline). Where a taxpayer is engaged in the
transportation of both passengers and freight, the
fraction above referred to shall first be determined
separately for passenger miles and freight miles. Then an
average of the passenger miles fraction and the freight
miles fraction shall be weighted to reflect the
taxpayer's:
(A) relative railway operating income from total
passenger and total freight service, as reported to
the Surface Transportation Board, in the case of
transportation by railroad; and
(B) relative gross receipts from passenger and
freight transportation, in case of transportation
other than by railroad.
(4) For taxable years ending on or after December 31,
2008, business income derived from furnishing airline
transportation services shall be apportioned to this State
by multiplying such income by a fraction, the numerator of
which is the revenue miles of the person in this State, and
the denominator of which is the revenue miles of the
person everywhere. For purposes of this paragraph, a
revenue mile is the transportation of one passenger or one

net ton of freight the distance of one mile for a
consideration. If a person is engaged in the
transportation of both passengers and freight, the
fraction above referred to shall be determined by means of
an average of the passenger revenue mile fraction and the
freight revenue mile fraction, weighted to reflect the
person's relative gross receipts from passenger and
freight airline transportation.
(e) Combined apportionment. Where 2 or more persons are
engaged in a unitary business as described in subsection
(a)(27) of Section 1501, a part of which is conducted in this
State by one or more members of the group, the business income
attributable to this State by any such member or members shall
be apportioned by means of the combined apportionment method.
(f) Alternative allocation. If the allocation and
apportionment provisions of subsections (a) through (e) and of
subsection (h) do not, for taxable years ending before
December 31, 2008, fairly represent the extent of a person's
business activity in this State, or, for taxable years ending
on or after December 31, 2008, fairly represent the market for
the person's goods, services, or other sources of business
income, the person may petition for, or the Director may,
without a petition, permit or require, in respect of all or any
part of the person's business activity, if reasonable:
(1) Separate accounting;
(2) The exclusion of any one or more factors;

(3) The inclusion of one or more additional factors
which will fairly represent the person's business
activities or market in this State; or
(4) The employment of any other method to effectuate
an equitable allocation and apportionment of the person's
business income.
(g) Cross reference. For allocation of business income by
residents, see Section 301(a).
(h) For tax years ending on or after December 31, 1998, the
apportionment factor of persons who apportion their business
income to this State under subsection (a) shall be equal to:
(1) for tax years ending on or after December 31, 1998
and before December 31, 1999, 16 2/3% of the property
factor plus 16 2/3% of the payroll factor plus 66 2/3% of
the sales factor;
(2) for tax years ending on or after December 31, 1999
and before December 31, 2000, 8 1/3% of the property
factor plus 8 1/3% of the payroll factor plus 83 1/3% of
the sales factor;
(3) for tax years ending on or after December 31,
2000, the sales factor.
If, in any tax year ending on or after December 31, 1998 and
before December 31, 2000, the denominator of the payroll,
property, or sales factor is zero, the apportionment factor
computed in paragraph (1) or (2) of this subsection for that
year shall be divided by an amount equal to 100% minus the

percentage weight given to each factor whose denominator is
equal to zero.
(Source: P.A. 101-31, eff. 6-28-19; 101-585, eff. 8-26-19;
102-40, eff. 6-25-21; 102-558, eff. 8-20-21.)
ARTICLE 90.
Section 90-5. The Illinois Income Tax Act is amended by
changing Sections 218 and 227 as follows:
(35 ILCS 5/218)
Sec. 218. Credit for student-assistance contributions.
(a) For taxable years ending on or after December 31, 2009
and on or before December 31, 2029 2024, each taxpayer who,
during the taxable year, makes a contribution (i) to a
specified individual College Savings Pool Account under
Section 16.5 of the State Treasurer Act or (ii) to the Illinois
Prepaid Tuition Trust Fund in an amount matching a
contribution made in the same taxable year by an employee of
the taxpayer to that Account or Fund is entitled to a credit
against the tax imposed under subsections (a) and (b) of
Section 201 in an amount equal to 25% of that matching
contribution, but not to exceed $500 per contributing employee
per taxable year.
(b) For taxable years ending before December 31, 2023, for
partners, shareholders of Subchapter S corporations, and

owners of limited liability companies, if the liability
company is treated as a partnership for purposes of federal
and State income taxation, there is allowed a credit under
this Section to be determined in accordance with the
determination of income and distributive share of income under
Sections 702 and 704 and Subchapter S of the Internal Revenue
Code. For taxable years ending on or after December 31, 2023,
partners and shareholders of subchapter S corporations are
entitled to a credit under this Section as provided in Section
251.
(c) The credit may not be carried back. If the amount of
the credit exceeds the tax liability for the year, the excess
may be carried forward and applied to the tax liability of the
5 taxable years following the excess credit year. The tax
credit shall be applied to the earliest year for which there is
a tax liability. If there are credits for more than one year
that are available to offset a liability, the earlier credit
shall be applied first.
(d) A taxpayer claiming the credit under this Section must
maintain and record any information that the Illinois Student
Assistance Commission, the Office of the State Treasurer, or
the Department may require regarding the matching contribution
for which the credit is claimed.
(Source: P.A. 102-289, eff. 8-6-21; 103-396, eff. 1-1-24.)
(35 ILCS 5/227)

Sec. 227. Adoption credit.
(a) Beginning with tax years ending on or after December
31, 2018 and ending with tax years ending on or before December
31, 2029, in the case of an individual taxpayer there shall be
allowed a credit against the tax imposed by subsections (a)
and (b) of Section 201 in an amount equal to the amount of the
federal adoption tax credit received pursuant to Section 23 of
the Internal Revenue Code with respect to the adoption of a
qualifying dependent child, subject to the limitations set
forth in this subsection and subsection (b). The aggregate
amount of qualified adoption expenses which may be taken into
account under this Section for all taxable years with respect
to the adoption of a qualifying dependent child by the
taxpayer shall not exceed $2,000 ($1,000 in the case of a
married individual filing a separate return). The credit under
this Section shall be allowed: (i) in the case of any expense
paid or incurred before the taxable year in which such
adoption becomes final, for the taxable year following the
taxable year during which such expense is paid or incurred,
and (ii) in the case of an expense paid or incurred during or
after the taxable year in which such adoption becomes final,
for the taxable year in which such expense is paid or incurred.
No credit shall be allowed under this Section for any expense
to the extent that funds for such expense are received under
any federal, State, or local program. For purposes of this
Section, spouses filing a joint return shall be considered one

taxpayer.
For a non-resident or part-year resident, the amount of
the credit under this Section shall be in proportion to the
amount of income attributable to this State.
(b) Increased credit amount for resident children. With
respect to the adoption of an eligible child who is at least
one year old and resides in Illinois at the time the expenses
are paid or incurred, subsection (a) shall be applied by
substituting $5,000 ($2,500 in the case of a married
individual filing a separate return) for $2,000.
(c) In no event shall a credit under this Section reduce
the taxpayer's liability to less than zero. If the amount of
the credit exceeds the income tax liability for the applicable
tax year, the excess may be carried forward and applied to the
tax liability of the 5 taxable years following the excess
credit year. The credit shall be applied to the earliest year
for which there is a tax liability. If there are credits from
more than one year that are available to offset a liability,
the earlier credit shall be applied first.
(d) The term "qualified adoption expenses" shall have the
same meaning as under Section 23(d) of the Internal Revenue
Code.
(Source: P.A. 100-587, eff. 6-4-18; 101-81, eff. 7-12-19.)
ARTICLE 95.

Section 95-5. The Property Tax Code is amended by changing
Section 20-130 as follows:
(35 ILCS 200/20-130)
Sec. 20-130. Distribution of taxes in counties of less
than 3,000,000; return of erroneous distribution.
(a) All distributions of taxes collected and interest
earned thereon by a county on behalf of taxing districts must
be made by the county treasurer, in counties with less than
3,000,000 inhabitants, within 30 days after the due date and
at 30 days intervals thereafter, unless the amount to be
distributed is less than $5. The county treasurer shall
distribute the taxes collected at the next 30-day interval if
the taxes collected are $5 or more. If the tax collections for
a taxing district are less than $5 for 3 consecutive 30-day
intervals, the county treasurer shall automatically distribute
the taxes collected to the unit of local government on the
third 30-day interval. All interest earned by a county on
behalf of taxing districts must be distributed by the county
treasurer, in counties with less than 3,000,000 inhabitants,
no later than the last distribution of taxes. The county
treasurer shall determine the manner in which all
distributions under this Section are to be made. The manner of
distribution may include, but is not limited to, check or
electronic funds transfer.
(b) Notwithstanding any other law to the contrary, if a

county makes an erroneous distribution of taxes collected and
interest earned thereon, upon majority vote of the governing
board of the taxing district that received the erroneous
distribution, the taxing district shall return the funds to
the county treasurer.
(Source: P.A. 91-378, eff. 7-30-99.)
ARTICLE 100.
Section 100-5. The Illinois Income Tax Act is amended by
adding Section 244 as follows:
(35 ILCS 5/244 new)
Sec. 244. Child tax credit.
(a) For the taxable years beginning on or after January 1,
2024, each individual taxpayer who has at least one qualifying
child who is younger than 12 years of age as of the last day of
the taxable year is entitled to a credit against the tax
imposed by subsections (a) and (b) of Section 201. For tax
years beginning on or after January 1, 2024 and before January
1, 2025, the credit shall be equal to 20% of the credit allowed
to the taxpayer under Section 212 of this Act for that taxable
year. For tax years beginning on or after January 1, 2025, the
amount of the credit shall be equal to 40% of the credit
allowed to the taxpayer under Section 212 of this Act for that
taxable year.

(b) If the amount of the credit exceeds the income tax
liability for the applicable tax year, then the excess credit
shall be refunded the taxpayer. The amount of the refund under
this Section shall not be included in the taxpayer's income or
resources for the purposes of determining eligibility or
benefit level in any means-tested benefit program administered
by a governmental entity unless required by federal law.
(c) The Department may adopt rules to carry out the
provisions of this Section.
(d) As used in this Section, "qualifying child" has the
meaning given to that term in Section 152 of the Internal
Revenue Code.
(e) This Section is exempt from the provisions of Section
250.
ARTICLE 105.
Section 105-5. The Illinois Income Tax Act is amended by
changing Section 207 as follows:
(35 ILCS 5/207) (from Ch. 120, par. 2-207)
Sec. 207. Net Losses.
(a) If after applying all of the (i) modifications
provided for in paragraph (2) of Section 203(b), paragraph (2)
of Section 203(c) and paragraph (2) of Section 203(d) and (ii)
the allocation and apportionment provisions of Article 3 of

this Act and subsection (c) of this Section, the taxpayer's
net income results in a loss;
(1) for any taxable year ending prior to December 31,
1999, such loss shall be allowed as a carryover or
carryback deduction in the manner allowed under Section
172 of the Internal Revenue Code;
(2) for any taxable year ending on or after December
31, 1999 and prior to December 31, 2003, such loss shall be
allowed as a carryback to each of the 2 taxable years
preceding the taxable year of such loss and shall be a net
operating loss carryover to each of the 20 taxable years
following the taxable year of such loss;
(3) for any taxable year ending on or after December
31, 2003 and prior to December 31, 2021, such loss shall be
allowed as a net operating loss carryover to each of the 12
taxable years following the taxable year of such loss,
except as provided in subsection (d); and
(4) for any taxable year ending on or after December
31, 2021, and for any net loss incurred in a taxable year
prior to a taxable year ending on or after December 31,
2021 for which the statute of limitation for utilization
of such net loss has not expired, such loss shall be
allowed as a net operating loss carryover to each of the 20
taxable years following the taxable year of such loss,
except as provided in subsection (d).
(a-5) Election to relinquish carryback and order of

application of losses.
(A) For losses incurred in tax years ending prior
to December 31, 2003, the taxpayer may elect to
relinquish the entire carryback period with respect to
such loss. Such election shall be made in the form and
manner prescribed by the Department and shall be made
by the due date (including extensions of time) for
filing the taxpayer's return for the taxable year in
which such loss is incurred, and such election, once
made, shall be irrevocable.
(B) The entire amount of such loss shall be
carried to the earliest taxable year to which such
loss may be carried. The amount of such loss which
shall be carried to each of the other taxable years
shall be the excess, if any, of the amount of such loss
over the sum of the deductions for carryback or
carryover of such loss allowable for each of the prior
taxable years to which such loss may be carried.
(b) Any loss determined under subsection (a) of this
Section must be carried back or carried forward in the same
manner for purposes of subsections (a) and (b) of Section 201
of this Act as for purposes of subsections (c) and (d) of
Section 201 of this Act.
(c) Notwithstanding any other provision of this Act, for
each taxable year ending on or after December 31, 2008, for
purposes of computing the loss for the taxable year under

subsection (a) of this Section and the deduction taken into
account for the taxable year for a net operating loss
carryover under paragraphs (1), (2), and (3) of subsection (a)
of this Section, the loss and net operating loss carryover
shall be reduced in an amount equal to the reduction to the net
operating loss and net operating loss carryover to the taxable
year, respectively, required under Section 108(b)(2)(A) of the
Internal Revenue Code, multiplied by a fraction, the numerator
of which is the amount of discharge of indebtedness income
that is excluded from gross income for the taxable year (but
only if the taxable year ends on or after December 31, 2008)
under Section 108(a) of the Internal Revenue Code and that
would have been allocated and apportioned to this State under
Article 3 of this Act but for that exclusion, and the
denominator of which is the total amount of discharge of
indebtedness income excluded from gross income under Section
108(a) of the Internal Revenue Code for the taxable year. The
reduction required under this subsection (c) shall be made
after the determination of Illinois net income for the taxable
year in which the indebtedness is discharged.
(d) In the case of a corporation (other than a Subchapter S
corporation): ,
(1) no carryover deduction shall be allowed under this
Section for any taxable year ending after December 31,
2010 and prior to December 31, 2012; , and
(2) no carryover deduction shall exceed $100,000 for

any taxable year ending on or after December 31, 2012 and
prior to December 31, 2014 and for any taxable year ending
on or after December 31, 2021 and prior to December 31,
2024; and
(3) no carryover deduction shall exceed $500,000 for
any taxable year ending on or after December 31, 2024 and
prior to December 31, 2027.
For the provided that, for purposes of determining the
taxable years to which a net loss may be carried under
subsection (a) of this Section, no taxable year for which a
deduction is disallowed under this subsection, or for which
the deduction would exceed $100,000 or $500,000, as
applicable, if not for this subsection, shall be counted.
(e) In the case of a residual interest holder in a real
estate mortgage investment conduit subject to Section 860E of
the Internal Revenue Code, the net loss in subsection (a)
shall be equal to:
(1) the amount computed under subsection (a), without
regard to this subsection (e), or if that amount is
positive, zero;
(2) minus an amount equal to the amount computed under
subsection (a), without regard to this subsection (e),
minus the amount that would be computed under subsection
(a) if the taxpayer's federal taxable income were computed
without regard to Section 860E of the Internal Revenue
Code and without regard to this subsection (e).

The modification in this subsection (e) is exempt from the
provisions of Section 250.
(Source: P.A. 102-16, eff. 6-17-21; 102-669, eff. 11-16-21.)
ARTICLE 110.
Section 110-5. The Use Tax Act is amended by changing
Section 9 as follows:
(35 ILCS 105/9) (from Ch. 120, par. 439.9)
Sec. 9. Except as to motor vehicles, watercraft, aircraft,
and trailers that are required to be registered with an agency
of this State, each retailer required or authorized to collect
the tax imposed by this Act shall pay to the Department the
amount of such tax (except as otherwise provided) at the time
when he is required to file his return for the period during
which such tax was collected, less a discount of 2.1% prior to
January 1, 1990, and 1.75% on and after January 1, 1990, or $5
per calendar year, whichever is greater, which is allowed to
reimburse the retailer for expenses incurred in collecting the
tax, keeping records, preparing and filing returns, remitting
the tax and supplying data to the Department on request.
Beginning with returns due on or after January 1, 2025, the
discount allowed in this Section, the Retailers' Occupation
Tax Act, the Service Occupation Tax Act, and the Service Use
Tax Act, including any local tax administered by the

Department and reported on the same return, shall not exceed
$1,000 per month in the aggregate for returns other than
transaction returns filed during the month. When determining
the discount allowed under this Section, retailers shall
include the amount of tax that would have been due at the 6.25%
rate but for the 1.25% rate imposed on sales tax holiday items
under Public Act 102-700. The discount under this Section is
not allowed for the 1.25% portion of taxes paid on aviation
fuel that is subject to the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133. When determining the
discount allowed under this Section, retailers shall include
the amount of tax that would have been due at the 1% rate but
for the 0% rate imposed under Public Act 102-700. In the case
of retailers who report and pay the tax on a transaction by
transaction basis, as provided in this Section, such discount
shall be taken with each such tax remittance instead of when
such retailer files his periodic return, but, beginning with
returns due on or after January 1, 2025, the discount allowed
under this Section and the Retailers' Occupation Tax Act,
including any local tax administered by the Department and
reported on the same transaction return, shall not exceed
$1,000 per month for all transaction returns filed during the
month. The discount allowed under this Section is allowed only
for returns that are filed in the manner required by this Act.
The Department may disallow the discount for retailers whose
certificate of registration is revoked at the time the return

is filed, but only if the Department's decision to revoke the
certificate of registration has become final. A retailer need
not remit that part of any tax collected by him to the extent
that he is required to remit and does remit the tax imposed by
the Retailers' Occupation Tax Act, with respect to the sale of
the same property.
Where such tangible personal property is sold under a
conditional sales contract, or under any other form of sale
wherein the payment of the principal sum, or a part thereof, is
extended beyond the close of the period for which the return is
filed, the retailer, in collecting the tax (except as to motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State), may collect for
each tax return period, only the tax applicable to that part of
the selling price actually received during such tax return
period.
Except as provided in this Section, on or before the
twentieth day of each calendar month, such retailer shall file
a return for the preceding calendar month. Such return shall
be filed on forms prescribed by the Department and shall
furnish such information as the Department may reasonably
require. The return shall include the gross receipts on food
for human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, food
consisting of or infused with adult use cannabis, soft drinks,
and food that has been prepared for immediate consumption)

which were received during the preceding calendar month,
quarter, or year, as appropriate, and upon which tax would
have been due but for the 0% rate imposed under Public Act
102-700. The return shall also include the amount of tax that
would have been due on food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption) but for the 0% rate imposed under
Public Act 102-700.
On and after January 1, 2018, except for returns required
to be filed prior to January 1, 2023 for motor vehicles,
watercraft, aircraft, and trailers that are required to be
registered with an agency of this State, with respect to
retailers whose annual gross receipts average $20,000 or more,
all returns required to be filed pursuant to this Act shall be
filed electronically. On and after January 1, 2023, with
respect to retailers whose annual gross receipts average
$20,000 or more, all returns required to be filed pursuant to
this Act, including, but not limited to, returns for motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State, shall be filed
electronically. Retailers who demonstrate that they do not
have access to the Internet or demonstrate hardship in filing
electronically may petition the Department to waive the
electronic filing requirement.

The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in the business of selling tangible
personal property at retail in this State;
3. The total amount of taxable receipts received by
him during the preceding calendar month from sales of
tangible personal property by him during such preceding
calendar month, including receipts from charge and time
sales, but less all deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the Department
may require.
Each retailer required or authorized to collect the tax
imposed by this Act on aviation fuel sold at retail in this
State during the preceding calendar month shall, instead of
reporting and paying tax on aviation fuel as otherwise

required by this Section, report and pay such tax on a separate
aviation fuel tax return. The requirements related to the
return shall be as otherwise provided in this Section.
Notwithstanding any other provisions of this Act to the
contrary, retailers collecting tax on aviation fuel shall file
all aviation fuel tax returns and shall make all aviation fuel
tax payments by electronic means in the manner and form
required by the Department. For purposes of this Section,
"aviation fuel" means jet fuel and aviation gasoline.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Notwithstanding any other provision of this Act to the
contrary, retailers subject to tax on cannabis shall file all
cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall
make all payments required by rules of the Department by
electronic funds transfer. Beginning October 1, 1995, a
taxpayer who has an average monthly tax liability of $50,000

or more shall make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1,
2000, a taxpayer who has an annual tax liability of $200,000 or
more shall make all payments required by rules of the
Department by electronic funds transfer. The term "annual tax
liability" shall be the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year. The term "average monthly
tax liability" means the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year divided by 12. Beginning
on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the
Department of Revenue Law shall make all payments required by
rules of the Department by electronic funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make
payments by electronic funds transfer. All taxpayers required
to make payments by electronic funds transfer shall make those
payments for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds

transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those
payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
Before October 1, 2000, if the taxpayer's average monthly
tax liability to the Department under this Act, the Retailers'
Occupation Tax Act, the Service Occupation Tax Act, the
Service Use Tax Act was $10,000 or more during the preceding 4
complete calendar quarters, he shall file a return with the
Department each month by the 20th day of the month next
following the month during which such tax liability is
incurred and shall make payments to the Department on or
before the 7th, 15th, 22nd and last day of the month during
which such liability is incurred. On and after October 1,
2000, if the taxpayer's average monthly tax liability to the
Department under this Act, the Retailers' Occupation Tax Act,
the Service Occupation Tax Act, and the Service Use Tax Act was
$20,000 or more during the preceding 4 complete calendar
quarters, he shall file a return with the Department each
month by the 20th day of the month next following the month
during which such tax liability is incurred and shall make
payment to the Department on or before the 7th, 15th, 22nd and
last day of the month during which such liability is incurred.
If the month during which such tax liability is incurred began

prior to January 1, 1985, each payment shall be in an amount
equal to 1/4 of the taxpayer's actual liability for the month
or an amount set by the Department not to exceed 1/4 of the
average monthly liability of the taxpayer to the Department
for the preceding 4 complete calendar quarters (excluding the
month of highest liability and the month of lowest liability
in such 4 quarter period). If the month during which such tax
liability is incurred begins on or after January 1, 1985, and
prior to January 1, 1987, each payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the
month or 27.5% of the taxpayer's liability for the same
calendar month of the preceding year. If the month during
which such tax liability is incurred begins on or after
January 1, 1987, and prior to January 1, 1988, each payment
shall be in an amount equal to 22.5% of the taxpayer's actual
liability for the month or 26.25% of the taxpayer's liability
for the same calendar month of the preceding year. If the month
during which such tax liability is incurred begins on or after
January 1, 1988, and prior to January 1, 1989, or begins on or
after January 1, 1996, each payment shall be in an amount equal
to 22.5% of the taxpayer's actual liability for the month or
25% of the taxpayer's liability for the same calendar month of
the preceding year. If the month during which such tax
liability is incurred begins on or after January 1, 1989, and
prior to January 1, 1996, each payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the

month or 25% of the taxpayer's liability for the same calendar
month of the preceding year or 100% of the taxpayer's actual
liability for the quarter monthly reporting period. The amount
of such quarter monthly payments shall be credited against the
final tax liability of the taxpayer's return for that month.
Before October 1, 2000, once applicable, the requirement of
the making of quarter monthly payments to the Department shall
continue until such taxpayer's average monthly liability to
the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the
month of lowest liability) is less than $9,000, or until such
taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $10,000. However, if a
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $10,000
threshold stated above, then such taxpayer may petition the
Department for change in such taxpayer's reporting status. On
and after October 1, 2000, once applicable, the requirement of
the making of quarter monthly payments to the Department shall
continue until such taxpayer's average monthly liability to
the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the
month of lowest liability) is less than $19,000 or until such

taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $20,000. However, if a
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $20,000
threshold stated above, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status.
The Department shall change such taxpayer's reporting status
unless it finds that such change is seasonal in nature and not
likely to be long term. Quarter monthly payment status shall
be determined under this paragraph as if the rate reduction to
1.25% in Public Act 102-700 on sales tax holiday items had not
occurred. For quarter monthly payments due on or after July 1,
2023 and through June 30, 2024, "25% of the taxpayer's
liability for the same calendar month of the preceding year"
shall be determined as if the rate reduction to 1.25% in Public
Act 102-700 on sales tax holiday items had not occurred.
Quarter monthly payment status shall be determined under this
paragraph as if the rate reduction to 0% in Public Act 102-700
on food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
food consisting of or infused with adult use cannabis, soft
drinks, and food that has been prepared for immediate
consumption) had not occurred. For quarter monthly payments

due under this paragraph on or after July 1, 2023 and through
June 30, 2024, "25% of the taxpayer's liability for the same
calendar month of the preceding year" shall be determined as
if the rate reduction to 0% in Public Act 102-700 had not
occurred. If any such quarter monthly payment is not paid at
the time or in the amount required by this Section, then the
taxpayer shall be liable for penalties and interest on the
difference between the minimum amount due and the amount of
such quarter monthly payment actually and timely paid, except
insofar as the taxpayer has previously made payments for that
month to the Department in excess of the minimum payments
previously due as provided in this Section. The Department
shall make reasonable rules and regulations to govern the
quarter monthly payment amount and quarter monthly payment
dates for taxpayers who file on other than a calendar monthly
basis.
If any such payment provided for in this Section exceeds
the taxpayer's liabilities under this Act, the Retailers'
Occupation Tax Act, the Service Occupation Tax Act and the
Service Use Tax Act, as shown by an original monthly return,
the Department shall issue to the taxpayer a credit memorandum
no later than 30 days after the date of payment, which
memorandum may be submitted by the taxpayer to the Department
in payment of tax liability subsequently to be remitted by the
taxpayer to the Department or be assigned by the taxpayer to a
similar taxpayer under this Act, the Retailers' Occupation Tax

Act, the Service Occupation Tax Act or the Service Use Tax Act,
in accordance with reasonable rules and regulations to be
prescribed by the Department, except that if such excess
payment is shown on an original monthly return and is made
after December 31, 1986, no credit memorandum shall be issued,
unless requested by the taxpayer. If no such request is made,
the taxpayer may credit such excess payment against tax
liability subsequently to be remitted by the taxpayer to the
Department under this Act, the Retailers' Occupation Tax Act,
the Service Occupation Tax Act or the Service Use Tax Act, in
accordance with reasonable rules and regulations prescribed by
the Department. If the Department subsequently determines that
all or any part of the credit taken was not actually due to the
taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
be reduced, if necessary, to reflect by 2.1% or 1.75% of the
difference between the credit taken and that actually due, and
the taxpayer shall be liable for penalties and interest on
such difference.
If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February, and March of a given
year being due by April 20 of such year; with the return for
April, May and June of a given year being due by July 20 of
such year; with the return for July, August and September of a

given year being due by October 20 of such year, and with the
return for October, November and December of a given year
being due by January 20 of the following year.
If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
liability to the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January 20
of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act concerning
the time within which a retailer may file his return, in the
case of any retailer who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such retailer shall file a final return under this Act with the
Department not more than one month after discontinuing such
business.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, except as otherwise provided in this
Section, every retailer selling this kind of tangible personal
property shall file, with the Department, upon a form to be
prescribed and supplied by the Department, a separate return
for each such item of tangible personal property which the

retailer sells, except that if, in the same transaction, (i) a
retailer of aircraft, watercraft, motor vehicles or trailers
transfers more than one aircraft, watercraft, motor vehicle or
trailer to another aircraft, watercraft, motor vehicle or
trailer retailer for the purpose of resale or (ii) a retailer
of aircraft, watercraft, motor vehicles, or trailers transfers
more than one aircraft, watercraft, motor vehicle, or trailer
to a purchaser for use as a qualifying rolling stock as
provided in Section 3-55 of this Act, then that seller may
report the transfer of all the aircraft, watercraft, motor
vehicles or trailers involved in that transaction to the
Department on the same uniform invoice-transaction reporting
return form. For purposes of this Section, "watercraft" means
a Class 2, Class 3, or Class 4 watercraft as defined in Section
3-2 of the Boat Registration and Safety Act, a personal
watercraft, or any boat equipped with an inboard motor.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, every person who is engaged in the
business of leasing or renting such items and who, in
connection with such business, sells any such item to a
retailer for the purpose of resale is, notwithstanding any
other provision of this Section to the contrary, authorized to
meet the return-filing requirement of this Act by reporting
the transfer of all the aircraft, watercraft, motor vehicles,
or trailers transferred for resale during a month to the

Department on the same uniform invoice-transaction reporting
return form on or before the 20th of the month following the
month in which the transfer takes place. Notwithstanding any
other provision of this Act to the contrary, all returns filed
under this paragraph must be filed by electronic means in the
manner and form as required by the Department.
The transaction reporting return in the case of motor
vehicles or trailers that are required to be registered with
an agency of this State, shall be the same document as the
Uniform Invoice referred to in Section 5-402 of the Illinois
Vehicle Code and must show the name and address of the seller;
the name and address of the purchaser; the amount of the
selling price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 2 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling
price; the amount of tax due from the retailer with respect to
such transaction; the amount of tax collected from the
purchaser by the retailer on such transaction (or satisfactory
evidence that such tax is not due in that particular instance,
if that is claimed to be the fact); the place and date of the
sale; a sufficient identification of the property sold; such
other information as is required in Section 5-402 of the
Illinois Vehicle Code, and such other information as the

Department may reasonably require.
The transaction reporting return in the case of watercraft
and aircraft must show the name and address of the seller; the
name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 2 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling
price; the amount of tax due from the retailer with respect to
such transaction; the amount of tax collected from the
purchaser by the retailer on such transaction (or satisfactory
evidence that such tax is not due in that particular instance,
if that is claimed to be the fact); the place and date of the
sale, a sufficient identification of the property sold, and
such other information as the Department may reasonably
require.
Such transaction reporting return shall be filed not later
than 20 days after the date of delivery of the item that is
being sold, but may be filed by the retailer at any time sooner
than that if he chooses to do so. The transaction reporting
return and tax remittance or proof of exemption from the tax
that is imposed by this Act may be transmitted to the
Department by way of the State agency with which, or State
officer with whom, the tangible personal property must be

titled or registered (if titling or registration is required)
if the Department and such agency or State officer determine
that this procedure will expedite the processing of
applications for title or registration.
With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the
Department shall issue, in the purchaser's name, a tax receipt
(or a certificate of exemption if the Department is satisfied
that the particular sale is tax exempt) which such purchaser
may submit to the agency with which, or State officer with
whom, he must title or register the tangible personal property
that is involved (if titling or registration is required) in
support of such purchaser's application for an Illinois
certificate or other evidence of title or registration to such
tangible personal property.
No retailer's failure or refusal to remit tax under this
Act precludes a user, who has paid the proper tax to the
retailer, from obtaining his certificate of title or other
evidence of title or registration (if titling or registration
is required) upon satisfying the Department that such user has
paid the proper tax (if tax is due) to the retailer. The
Department shall adopt appropriate rules to carry out the
mandate of this paragraph.
If the user who would otherwise pay tax to the retailer

wants the transaction reporting return filed and the payment
of tax or proof of exemption made to the Department before the
retailer is willing to take these actions and such user has not
paid the tax to the retailer, such user may certify to the fact
of such delay by the retailer, and may (upon the Department
being satisfied of the truth of such certification) transmit
the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to
the Department and obtain his tax receipt or exemption
determination, in which event the transaction reporting return
and tax remittance (if a tax payment was required) shall be
credited by the Department to the proper retailer's account
with the Department, but without the vendor's 2.1% or 1.75%
discount provided for in this Section being allowed. When the
user pays the tax directly to the Department, he shall pay the
tax in the same amount and in the same form in which it would
be remitted if the tax had been remitted to the Department by
the retailer.
Where a retailer collects the tax with respect to the
selling price of tangible personal property which he sells and
the purchaser thereafter returns such tangible personal
property and the retailer refunds the selling price thereof to
the purchaser, such retailer shall also refund, to the
purchaser, the tax so collected from the purchaser. When
filing his return for the period in which he refunds such tax
to the purchaser, the retailer may deduct the amount of the tax

so refunded by him to the purchaser from any other use tax
which such retailer may be required to pay or remit to the
Department, as shown by such return, if the amount of the tax
to be deducted was previously remitted to the Department by
such retailer. If the retailer has not previously remitted the
amount of such tax to the Department, he is entitled to no
deduction under this Act upon refunding such tax to the
purchaser.
Any retailer filing a return under this Section shall also
include (for the purpose of paying tax thereon) the total tax
covered by such return upon the selling price of tangible
personal property purchased by him at retail from a retailer,
but as to which the tax imposed by this Act was not collected
from the retailer filing such return, and such retailer shall
remit the amount of such tax to the Department when filing such
return.
If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable retailers, who are required to file
returns hereunder and also under the Retailers' Occupation Tax
Act, to furnish all the return information required by both
Acts on the one form.
Where the retailer has more than one business registered
with the Department under separate registration under this
Act, such retailer may not file each return that is due as a
single return covering all such registered businesses, but

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

Fund 20% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be
required for refunds of the 20% portion of the tax on aviation
fuel under this Act, which amount shall be deposited into the
Aviation Fuel Sales Tax Refund Fund. The Department shall only
pay moneys into the State Aviation Program Fund and the
Aviation Fuels Sales Tax Refund Fund under this Act for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 100% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol. If, in any
month, the tax on sales tax holiday items, as defined in
Section 3-6, is imposed at the rate of 1.25%, then the
Department shall pay 100% of the net revenue realized for that
month from the 1.25% rate on the selling price of sales tax
holiday items into the State and Local Sales Tax Reform Fund.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the net revenue
realized for the preceding month from the 6.25% general rate
on the selling price of tangible personal property which is
purchased outside Illinois at retail from a retailer and which
is titled or registered by an agency of this State's
government.

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

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

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

secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited in the Build Illinois Bond
Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois
Fund; provided, however, that any amounts paid to the Build
Illinois Fund in any fiscal year pursuant to this sentence
shall be deemed to constitute payments pursuant to clause (b)
of the preceding sentence and shall reduce the amount
otherwise payable for such fiscal year pursuant to clause (b)
of the preceding sentence. The moneys received by the
Department pursuant to this Act and required to be deposited
into the Build Illinois Fund are subject to the pledge, claim
and charge set forth in Section 12 of the Build Illinois Bond
Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment

thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000

2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 300,000,000
2022 300,000,000
2023 300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000

2034 375,000,000
2035 375,000,000
2036 450,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,

and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, for aviation fuel sold on or after December 1, 2019,
the Department shall each month deposit into the Aviation Fuel
Sales Tax Refund Fund an amount estimated by the Department to
be required for refunds of the 80% portion of the tax on
aviation fuel under this Act. The Department shall only
deposit moneys into the Aviation Fuel Sales Tax Refund Fund
under this paragraph for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois
Tax Increment Fund 0.27% of 80% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, and the Energy Infrastructure Fund
pursuant to the preceding paragraphs or in any amendments to
this Section hereafter enacted, beginning on the first day of
the first calendar month to occur on or after August 26, 2014
(the effective date of Public Act 98-1098), each month, from

the collections made under Section 9 of the Use Tax Act,
Section 9 of the Service Use Tax Act, Section 9 of the Service
Occupation Tax Act, and Section 3 of the Retailers' Occupation
Tax Act, the Department shall pay into the Tax Compliance and
Administration Fund, to be used, subject to appropriation, to
fund additional auditors and compliance personnel at the
Department of Revenue, an amount equal to 1/12 of 5% of 80% of
the cash receipts collected during the preceding fiscal year
by the Audit Bureau of the Department under the Use Tax Act,
the Service Use Tax Act, the Service Occupation Tax Act, the
Retailers' Occupation Tax Act, and associated local occupation
and use taxes administered by the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, and the Tax Compliance and Administration
Fund as provided in this Section, beginning on July 1, 2018 the
Department shall pay each month into the Downstate Public
Transportation Fund the moneys required to be so paid under
Section 2-3 of the Downstate Public Transportation Act.
Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from

collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim, and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year............................Total Deposit
2024....................................$200,000,000
2025....................................$206,000,000
2026....................................$212,200,000
2027....................................$218,500,000
2028....................................$225,100,000
2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000
2034....................................$341,200,000

2035....................................$351,400,000
2036....................................$361,900,000
2037....................................$372,800,000
2038....................................$384,000,000
2039....................................$395,500,000
2040....................................$407,400,000
2041....................................$419,600,000
2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the State and Local Sales Tax
Reform Fund, the Build Illinois Fund, the McCormick Place
Expansion Project Fund, the Illinois Tax Increment Fund, and
the Tax Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 16% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2022 and until July 1, 2023, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 32% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2023 and until July 1, 2024, subject to the

payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 48% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2024 and until July 1, 2025, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 64% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning on July 1, 2025, subject to the payment of amounts
into the State and Local Sales Tax Reform Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 80% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. As used in this
paragraph "motor fuel" has the meaning given to that term in
Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the
meaning given to that term in Section 3-40 of this Act.

Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the State
Treasury and 25% shall be reserved in a special account and
used only for the transfer to the Common School Fund as part of
the monthly transfer from the General Revenue Fund in
accordance with Section 8a of the State Finance Act.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to
such sales, if the retailers who are affected do not make
written objection to the Department to this arrangement.
(Source: P.A. 102-700, Article 60, Section 60-15, eff.
4-19-22; 102-700, Article 65, Section 65-5, eff. 4-19-22;

102-1019, eff. 1-1-23; 103-154, eff. 6-30-23; 103-363, eff.
7-28-23.)
Section 110-10. The Service Use Tax Act is amended by
changing Section 9 as follows:
(35 ILCS 110/9) (from Ch. 120, par. 439.39)
Sec. 9. Each serviceman required or authorized to collect
the tax herein imposed shall pay to the Department the amount
of such tax (except as otherwise provided) at the time when he
is required to file his return for the period during which such
tax was collected, less a discount of 2.1% prior to January 1,
1990 and 1.75% on and after January 1, 1990, or $5 per calendar
year, whichever is greater, which is allowed to reimburse the
serviceman for expenses incurred in collecting the tax,
keeping records, preparing and filing returns, remitting the
tax and supplying data to the Department on request. Beginning
with returns due on or after January 1, 2025, the vendor's
discount allowed in this Section, the Retailers' Occupation
Tax Act, the Service Occupation Tax Act, and the Use Tax Act,
including any local tax administered by the Department and
reported on the same return, shall not exceed $1,000 per month
in the aggregate. When determining the discount allowed under
this Section, servicemen shall include the amount of tax that
would have been due at the 1% rate but for the 0% rate imposed
under this amendatory Act of the 102nd General Assembly. The

discount under this Section is not allowed for the 1.25%
portion of taxes paid on aviation fuel that is subject to the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133. The discount allowed under this Section is allowed only
for returns that are filed in the manner required by this Act.
The Department may disallow the discount for servicemen whose
certificate of registration is revoked at the time the return
is filed, but only if the Department's decision to revoke the
certificate of registration has become final. A serviceman
need not remit that part of any tax collected by him to the
extent that he is required to pay and does pay the tax imposed
by the Service Occupation Tax Act with respect to his sale of
service involving the incidental transfer by him of the same
property.
Except as provided hereinafter in this Section, on or
before the twentieth day of each calendar month, such
serviceman shall file a return for the preceding calendar
month in accordance with reasonable Rules and Regulations to
be promulgated by the Department. Such return shall be filed
on a form prescribed by the Department and shall contain such
information as the Department may reasonably require. The
return shall include the gross receipts which were received
during the preceding calendar month or quarter on the
following items upon which tax would have been due but for the
0% rate imposed under this amendatory Act of the 102nd General
Assembly: (i) food for human consumption that is to be

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

taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in business as a serviceman in this
State;
3. The total amount of taxable receipts received by
him during the preceding calendar month, including
receipts from charge and time sales, but less all
deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the Department
may require.
Each serviceman required or authorized to collect the tax
imposed by this Act on aviation fuel transferred as an
incident of a sale of service in this State during the
preceding calendar month shall, instead of reporting and
paying tax on aviation fuel as otherwise required by this
Section, report and pay such tax on a separate aviation fuel
tax return. The requirements related to the return shall be as
otherwise provided in this Section. Notwithstanding any other
provisions of this Act to the contrary, servicemen collecting

tax on aviation fuel shall file all aviation fuel tax returns
and shall make all aviation fuel tax payments by electronic
means in the manner and form required by the Department. For
purposes of this Section, "aviation fuel" means jet fuel and
aviation gasoline.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Notwithstanding any other provision of this Act to the
contrary, servicemen subject to tax on cannabis shall file all
cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall
make all payments required by rules of the Department by
electronic funds transfer. Beginning October 1, 1995, a
taxpayer who has an average monthly tax liability of $50,000
or more shall make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1,
2000, a taxpayer who has an annual tax liability of $200,000 or
more shall make all payments required by rules of the

Department by electronic funds transfer. The term "annual tax
liability" shall be the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year. The term "average monthly
tax liability" means the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year divided by 12. Beginning
on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the
Department of Revenue Law shall make all payments required by
rules of the Department by electronic funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make
payments by electronic funds transfer. All taxpayers required
to make payments by electronic funds transfer shall make those
payments for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those
payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to

effectuate a program of electronic funds transfer and the
requirements of this Section.
If the serviceman is otherwise required to file a monthly
return and if the serviceman's average monthly tax liability
to the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February and March of a given year
being due by April 20 of such year; with the return for April,
May and June of a given year being due by July 20 of such year;
with the return for July, August and September of a given year
being due by October 20 of such year, and with the return for
October, November and December of a given year being due by
January 20 of the following year.
If the serviceman is otherwise required to file a monthly
or quarterly return and if the serviceman's average monthly
tax liability to the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January 20
of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act concerning
the time within which a serviceman may file his return, in the
case of any serviceman who ceases to engage in a kind of
business which makes him responsible for filing returns under

this Act, such serviceman shall file a final return under this
Act with the Department not more than 1 month after
discontinuing such business.
Where a serviceman collects the tax with respect to the
selling price of property which he sells and the purchaser
thereafter returns such property and the serviceman refunds
the selling price thereof to the purchaser, such serviceman
shall also refund, to the purchaser, the tax so collected from
the purchaser. When filing his return for the period in which
he refunds such tax to the purchaser, the serviceman may
deduct the amount of the tax so refunded by him to the
purchaser from any other Service Use Tax, Service Occupation
Tax, retailers' occupation tax or use tax which such
serviceman may be required to pay or remit to the Department,
as shown by such return, provided that the amount of the tax to
be deducted shall previously have been remitted to the
Department by such serviceman. If the serviceman shall not
previously have remitted the amount of such tax to the
Department, he shall be entitled to no deduction hereunder
upon refunding such tax to the purchaser.
Any serviceman filing a return hereunder shall also
include the total tax upon the selling price of tangible
personal property purchased for use by him as an incident to a
sale of service, and such serviceman shall remit the amount of
such tax to the Department when filing such return.
If experience indicates such action to be practicable, the

Department may prescribe and furnish a combination or joint
return which will enable servicemen, who are required to file
returns hereunder and also under the Service Occupation Tax
Act, to furnish all the return information required by both
Acts on the one form.
Where the serviceman has more than one business registered
with the Department under separate registration hereunder,
such serviceman shall not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Tax Reform Fund, a special fund in
the State Treasury, the net revenue realized for the preceding
month from the 1% tax imposed under this Act.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 20% of the
net revenue realized for the preceding month from the 6.25%
general rate on transfers of tangible personal property, other
than (i) tangible personal property which is purchased outside
Illinois at retail from a retailer and which is titled or
registered by an agency of this State's government and (ii)
aviation fuel sold on or after December 1, 2019. This
exception for aviation fuel only applies for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each

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

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

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

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

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

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

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

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

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

Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim, and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year............................Total Deposit
2024....................................$200,000,000
2025....................................$206,000,000
2026....................................$212,200,000
2027....................................$218,500,000

2028....................................$225,100,000
2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000
2034....................................$341,200,000
2035....................................$351,400,000
2036....................................$361,900,000
2037....................................$372,800,000
2038....................................$384,000,000
2039....................................$395,500,000
2040....................................$407,400,000
2041....................................$419,600,000
2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the State and Local Sales Tax
Reform Fund, the Build Illinois Fund, the McCormick Place
Expansion Project Fund, the Energy Infrastructure Fund, and
the Tax Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 16% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2022 and until July 1, 2023, subject to the
payment of amounts into the State and Local Sales Tax Reform

Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 32% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2023 and until July 1, 2024, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 48% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2024 and until July 1, 2025, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 64% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning on July 1, 2025, subject to the payment of amounts
into the State and Local Sales Tax Reform Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, and the Tax Compliance and

Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 80% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. As used in this
paragraph "motor fuel" has the meaning given to that term in
Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the
meaning given to that term in Section 3-40 of the Use Tax Act.
Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the
General Revenue Fund of the State Treasury and 25% shall be
reserved in a special account and used only for the transfer to
the Common School Fund as part of the monthly transfer from the
General Revenue Fund in accordance with Section 8a of the
State Finance Act.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
(Source: P.A. 102-700, eff. 4-19-22; 103-363, eff. 7-28-23.)

Section 110-15. The Service Occupation Tax Act is amended
by changing Section 9 as follows:
(35 ILCS 115/9) (from Ch. 120, par. 439.109)
Sec. 9. Each serviceman required or authorized to collect
the tax herein imposed shall pay to the Department the amount
of such tax at the time when he is required to file his return
for the period during which such tax was collectible, less a
discount of 2.1% prior to January 1, 1990, and 1.75% on and
after January 1, 1990, or $5 per calendar year, whichever is
greater, which is allowed to reimburse the serviceman for
expenses incurred in collecting the tax, keeping records,
preparing and filing returns, remitting the tax, and supplying
data to the Department on request. Beginning with returns due
on or after January 1, 2025, the vendor's discount allowed in
this Section, the Retailers' Occupation Tax Act, the Use Tax
Act, and the Service Use Tax Act, including any local tax
administered by the Department and reported on the same
return, shall not exceed $1,000 per month in the aggregate.
When determining the discount allowed under this Section,
servicemen shall include the amount of tax that would have
been due at the 1% rate but for the 0% rate imposed under
Public Act 102-700 this amendatory Act of the 102nd General
Assembly. The discount under this Section is not allowed for
the 1.25% portion of taxes paid on aviation fuel that is

subject to the revenue use requirements of 49 U.S.C. 47107(b)
and 49 U.S.C. 47133. The discount allowed under this Section
is allowed only for returns that are filed in the manner
required by this Act. The Department may disallow the discount
for servicemen whose certificate of registration is revoked at
the time the return is filed, but only if the Department's
decision to revoke the certificate of registration has become
final.
Where such tangible personal property is sold under a
conditional sales contract, or under any other form of sale
wherein the payment of the principal sum, or a part thereof, is
extended beyond the close of the period for which the return is
filed, the serviceman, in collecting the tax may collect, for
each tax return period, only the tax applicable to the part of
the selling price actually received during such tax return
period.
Except as provided hereinafter in this Section, on or
before the twentieth day of each calendar month, such
serviceman shall file a return for the preceding calendar
month in accordance with reasonable rules and regulations to
be promulgated by the Department of Revenue. Such return shall
be filed on a form prescribed by the Department and shall
contain such information as the Department may reasonably
require. The return shall include the gross receipts which
were received during the preceding calendar month or quarter
on the following items upon which tax would have been due but

for the 0% rate imposed under Public Act 102-700 this
amendatory Act of the 102nd General Assembly: (i) food for
human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, food
consisting of or infused with adult use cannabis, soft drinks,
and food that has been prepared for immediate consumption);
and (ii) food prepared for immediate consumption and
transferred incident to a sale of service subject to this Act
or the Service Use Tax Act by an entity licensed under the
Hospital Licensing Act, the Nursing Home Care Act, the
Assisted Living and Shared Housing Act, the ID/DD Community
Care Act, the MC/DD Act, the Specialized Mental Health
Rehabilitation Act of 2013, or the Child Care Act of 1969, or
an entity that holds a permit issued pursuant to the Life Care
Facilities Act. The return shall also include the amount of
tax that would have been due on the items listed in the
previous sentence but for the 0% rate imposed under Public Act
102-700 this amendatory Act of the 102nd General Assembly.
On and after January 1, 2018, with respect to servicemen
whose annual gross receipts average $20,000 or more, all
returns required to be filed pursuant to this Act shall be
filed electronically. Servicemen who demonstrate that they do
not have access to the Internet or demonstrate hardship in
filing electronically may petition the Department to waive the
electronic filing requirement.
The Department may require returns to be filed on a

quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in business as a serviceman in this
State;
3. The total amount of taxable receipts received by
him during the preceding calendar month, including
receipts from charge and time sales, but less all
deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the Department
may require.
Each serviceman required or authorized to collect the tax
herein imposed on aviation fuel acquired as an incident to the
purchase of a service in this State during the preceding
calendar month shall, instead of reporting and paying tax as
otherwise required by this Section, report and pay such tax on
a separate aviation fuel tax return. The requirements related

to the return shall be as otherwise provided in this Section.
Notwithstanding any other provisions of this Act to the
contrary, servicemen transferring aviation fuel incident to
sales of service shall file all aviation fuel tax returns and
shall make all aviation fuel tax payments by electronic means
in the manner and form required by the Department. For
purposes of this Section, "aviation fuel" means jet fuel and
aviation gasoline.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Notwithstanding any other provision of this Act to the
contrary, servicemen subject to tax on cannabis shall file all
cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
Prior to October 1, 2003, and on and after September 1,
2004 a serviceman may accept a Manufacturer's Purchase Credit
certification from a purchaser in satisfaction of Service Use
Tax as provided in Section 3-70 of the Service Use Tax Act if
the purchaser provides the appropriate documentation as
required by Section 3-70 of the Service Use Tax Act. A
Manufacturer's Purchase Credit certification, accepted prior
to October 1, 2003 or on or after September 1, 2004 by a
serviceman as provided in Section 3-70 of the Service Use Tax

Act, may be used by that serviceman to satisfy Service
Occupation Tax liability in the amount claimed in the
certification, not to exceed 6.25% of the receipts subject to
tax from a qualifying purchase. A Manufacturer's Purchase
Credit reported on any original or amended return filed under
this Act after October 20, 2003 for reporting periods prior to
September 1, 2004 shall be disallowed. Manufacturer's Purchase
Credit reported on annual returns due on or after January 1,
2005 will be disallowed for periods prior to September 1,
2004. No Manufacturer's Purchase Credit may be used after
September 30, 2003 through August 31, 2004 to satisfy any tax
liability imposed under this Act, including any audit
liability.
Beginning on July 1, 2023 and through December 31, 2032, a
serviceman may accept a Sustainable Aviation Fuel Purchase
Credit certification from an air common carrier-purchaser in
satisfaction of Service Use Tax as provided in Section 3-72 of
the Service Use Tax Act if the purchaser provides the
appropriate documentation as required by Section 3-72 of the
Service Use Tax Act. A Sustainable Aviation Fuel Purchase
Credit certification accepted by a serviceman in accordance
with this paragraph may be used by that serviceman to satisfy
service occupation tax liability (but not in satisfaction of
penalty or interest) in the amount claimed in the
certification, not to exceed 6.25% of the receipts subject to
tax from a sale of aviation fuel. In addition, for a sale of

aviation fuel to qualify to earn the Sustainable Aviation Fuel
Purchase Credit, servicemen must retain in their books and
records a certification from the producer of the aviation fuel
that the aviation fuel sold by the serviceman and for which a
sustainable aviation fuel purchase credit was earned meets the
definition of sustainable aviation fuel under Section 3-72 of
the Service Use Tax Act. The documentation must include detail
sufficient for the Department to determine the number of
gallons of sustainable aviation fuel sold.
If the serviceman's average monthly tax liability to the
Department does not exceed $200, the Department may authorize
his returns to be filed on a quarter annual basis, with the
return for January, February, and March of a given year being
due by April 20 of such year; with the return for April, May,
and June of a given year being due by July 20 of such year;
with the return for July, August, and September of a given year
being due by October 20 of such year, and with the return for
October, November, and December of a given year being due by
January 20 of the following year.
If the serviceman's average monthly tax liability to the
Department does not exceed $50, the Department may authorize
his returns to be filed on an annual basis, with the return for
a given year being due by January 20 of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.

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

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

purchaser, the tax so collected from the purchaser. When
filing his return for the period in which he refunds such tax
to the purchaser, the serviceman may deduct the amount of the
tax so refunded by him to the purchaser from any other Service
Occupation Tax, Service Use Tax, Retailers' Occupation Tax, or
Use Tax which such serviceman may be required to pay or remit
to the Department, as shown by such return, provided that the
amount of the tax to be deducted shall previously have been
remitted to the Department by such serviceman. If the
serviceman shall not previously have remitted the amount of
such tax to the Department, he shall be entitled to no
deduction hereunder upon refunding such tax to the purchaser.
If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable servicemen, who are required to file
returns hereunder and also under the Retailers' Occupation Tax
Act, the Use Tax Act, or the Service Use Tax Act, to furnish
all the return information required by all said Acts on the one
form.
Where the serviceman has more than one business registered
with the Department under separate registrations hereunder,
such serviceman shall file separate returns for each
registered business.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund the revenue realized
for the preceding month from the 1% tax imposed under this Act.

Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund 4% of the
revenue realized for the preceding month from the 6.25%
general rate on sales of tangible personal property other than
aviation fuel sold on or after December 1, 2019. This
exception for aviation fuel only applies for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the County and Mass Transit District Fund 20% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the revenue
realized for the preceding month from the 6.25% general rate
on transfers of tangible personal property other than aviation
fuel sold on or after December 1, 2019. This exception for
aviation fuel only applies for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be
required for refunds of the 20% portion of the tax on aviation

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

Occupation Tax Act shall not exceed $18,000,000 in any State
fiscal year. As used in this paragraph, the "average monthly
deficit" shall be equal to the difference between the average
monthly claims for payment by the fund and the average monthly
revenues deposited into the fund, excluding payments made
pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, the Service
Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
each month the Department shall deposit $500,000 into the
State Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be

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

principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited in the Build Illinois Bond
Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois
Fund; provided, however, that any amounts paid to the Build
Illinois Fund in any fiscal year pursuant to this sentence
shall be deemed to constitute payments pursuant to clause (b)
of the preceding sentence and shall reduce the amount
otherwise payable for such fiscal year pursuant to clause (b)
of the preceding sentence. The moneys received by the
Department pursuant to this Act and required to be deposited
into the Build Illinois Fund are subject to the pledge, claim
and charge set forth in Section 12 of the Build Illinois Bond
Act.
Subject to payment of amounts into the Build Illinois Fund

as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000

2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 300,000,000
2022 300,000,000
2023 300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000

2032 375,000,000
2033 375,000,000
2034 375,000,000
2035 375,000,000
2036 450,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total
Deposit", has been deposited.

Subject to payment of amounts into the Capital Projects
Fund, the Build Illinois Fund, and the McCormick Place
Expansion Project Fund pursuant to the preceding paragraphs or
in any amendments thereto hereafter enacted, for aviation fuel
sold on or after December 1, 2019, the Department shall each
month deposit into the Aviation Fuel Sales Tax Refund Fund an
amount estimated by the Department to be required for refunds
of the 80% portion of the tax on aviation fuel under this Act.
The Department shall only deposit moneys into the Aviation
Fuel Sales Tax Refund Fund under this paragraph for so long as
the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois
Tax Increment Fund 0.27% of 80% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, and the
Illinois Tax Increment Fund pursuant to the preceding
paragraphs or in any amendments to this Section hereafter
enacted, beginning on the first day of the first calendar
month to occur on or after August 26, 2014 (the effective date

of Public Act 98-1098), each month, from the collections made
under Section 9 of the Use Tax Act, Section 9 of the Service
Use Tax Act, Section 9 of the Service Occupation Tax Act, and
Section 3 of the Retailers' Occupation Tax Act, the Department
shall pay into the Tax Compliance and Administration Fund, to
be used, subject to appropriation, to fund additional auditors
and compliance personnel at the Department of Revenue, an
amount equal to 1/12 of 5% of 80% of the cash receipts
collected during the preceding fiscal year by the Audit Bureau
of the Department under the Use Tax Act, the Service Use Tax
Act, the Service Occupation Tax Act, the Retailers' Occupation
Tax Act, and associated local occupation and use taxes
administered by the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, and the Tax Compliance and Administration
Fund as provided in this Section, beginning on July 1, 2018 the
Department shall pay each month into the Downstate Public
Transportation Fund the moneys required to be so paid under
Section 2-3 of the Downstate Public Transportation Act.
Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall

deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year............................Total Deposit
2024....................................$200,000,000
2025....................................$206,000,000
2026....................................$212,200,000
2027....................................$218,500,000
2028....................................$225,100,000
2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000

2034....................................$341,200,000
2035....................................$351,400,000
2036....................................$361,900,000
2037....................................$372,800,000
2038....................................$384,000,000
2039....................................$395,500,000
2040....................................$407,400,000
2041....................................$419,600,000
2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the County and Mass Transit
District Fund, the Local Government Tax Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 16% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning July 1,
2022 and until July 1, 2023, subject to the payment of amounts
into the County and Mass Transit District Fund, the Local
Government Tax Fund, the Build Illinois Fund, the McCormick
Place Expansion Project Fund, the Illinois Tax Increment Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 32% of the net

revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning July 1, 2023 and until July 1, 2024,
subject to the payment of amounts into the County and Mass
Transit District Fund, the Local Government Tax Fund, the
Build Illinois Fund, the McCormick Place Expansion Project
Fund, the Illinois Tax Increment Fund, and the Tax Compliance
and Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 48% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning July 1,
2024 and until July 1, 2025, subject to the payment of amounts
into the County and Mass Transit District Fund, the Local
Government Tax Fund, the Build Illinois Fund, the McCormick
Place Expansion Project Fund, the Illinois Tax Increment Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 64% of the net
revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning on July 1, 2025, subject to the payment of
amounts into the County and Mass Transit District Fund, the
Local Government Tax Fund, the Build Illinois Fund, the
McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, and the Tax Compliance and Administration Fund
as provided in this Section, the Department shall pay each
month into the Road Fund the amount estimated to represent 80%
of the net revenue realized from the taxes imposed on motor

fuel and gasohol. As used in this paragraph "motor fuel" has
the meaning given to that term in Section 1.1 of the Motor Fuel
Tax Law, and "gasohol" has the meaning given to that term in
Section 3-40 of the Use Tax Act.
Of the remainder of the moneys received by the Department
pursuant to this Act, 75% shall be paid into the General
Revenue Fund of the State treasury Treasury and 25% shall be
reserved in a special account and used only for the transfer to
the Common School Fund as part of the monthly transfer from the
General Revenue Fund in accordance with Section 8a of the
State Finance Act.
The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.
Such annual return to the Department shall include a statement
of gross receipts as shown by the taxpayer's last federal
Federal income tax return. If the total receipts of the
business as reported in the federal Federal income tax return
do not agree with the gross receipts reported to the
Department of Revenue for the same period, the taxpayer shall
attach to his annual return a schedule showing a
reconciliation of the 2 amounts and the reasons for the
difference. The taxpayer's annual return to the Department
shall also disclose the cost of goods sold by the taxpayer

during the year covered by such return, opening and closing
inventories of such goods for such year, cost of goods used
from stock or taken from stock and given away by the taxpayer
during such year, pay roll information of the taxpayer's
business during such year and any additional reasonable
information which the Department deems would be helpful in
determining the accuracy of the monthly, quarterly or annual
returns filed by such taxpayer as hereinbefore provided for in
this Section.
If the annual information return required by this Section
is not filed when and as required, the taxpayer shall be liable
as follows:
(i) Until January 1, 1994, the taxpayer shall be
liable for a penalty equal to 1/6 of 1% of the tax due from
such taxpayer under this Act during the period to be
covered by the annual return for each month or fraction of
a month until such return is filed as required, the
penalty to be assessed and collected in the same manner as
any other penalty provided for in this Act.
(ii) On and after January 1, 1994, the taxpayer shall
be liable for a penalty as described in Section 3-4 of the
Uniform Penalty and Interest Act.
The chief executive officer, proprietor, owner, or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person who
willfully signs the annual return containing false or

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

arrangement.
(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23;
103-363, eff. 7-28-23; revised 9-25-23.)
Section 110-20. The Retailers' Occupation Tax Act is
amended by changing Section 3 as follows:
(35 ILCS 120/3) (from Ch. 120, par. 442)
Sec. 3. Except as provided in this Section, on or before
the twentieth day of each calendar month, every person engaged
in the business of selling tangible personal property at
retail in this State during the preceding calendar month shall
file a return with the Department, stating:
1. The name of the seller;
2. His residence address and the address of his
principal place of business and the address of the
principal place of business (if that is a different
address) from which he engages in the business of selling
tangible personal property at retail in this State;
3. Total amount of receipts received by him during the
preceding calendar month or quarter, as the case may be,
from sales of tangible personal property, and from
services furnished, by him during such preceding calendar
month or quarter;
4. Total amount received by him during the preceding
calendar month or quarter on charge and time sales of

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

Department may require.
On and after January 1, 2018, except for returns required
to be filed prior to January 1, 2023 for motor vehicles,
watercraft, aircraft, and trailers that are required to be
registered with an agency of this State, with respect to
retailers whose annual gross receipts average $20,000 or more,
all returns required to be filed pursuant to this Act shall be
filed electronically. On and after January 1, 2023, with
respect to retailers whose annual gross receipts average
$20,000 or more, all returns required to be filed pursuant to
this Act, including, but not limited to, returns for motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State, shall be filed
electronically. Retailers who demonstrate that they do not
have access to the Internet or demonstrate hardship in filing
electronically may petition the Department to waive the
electronic filing requirement.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Each return shall be accompanied by the statement of
prepaid tax issued pursuant to Section 2e for which credit is
claimed.
Prior to October 1, 2003, and on and after September 1,
2004, a retailer may accept a Manufacturer's Purchase Credit

certification from a purchaser in satisfaction of Use Tax as
provided in Section 3-85 of the Use Tax Act if the purchaser
provides the appropriate documentation as required by Section
3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
certification, accepted by a retailer prior to October 1, 2003
and on and after September 1, 2004 as provided in Section 3-85
of the Use Tax Act, may be used by that retailer to satisfy
Retailers' Occupation Tax liability in the amount claimed in
the certification, not to exceed 6.25% of the receipts subject
to tax from a qualifying purchase. A Manufacturer's Purchase
Credit reported on any original or amended return filed under
this Act after October 20, 2003 for reporting periods prior to
September 1, 2004 shall be disallowed. Manufacturer's Purchase
Credit reported on annual returns due on or after January 1,
2005 will be disallowed for periods prior to September 1,
2004. No Manufacturer's Purchase Credit may be used after
September 30, 2003 through August 31, 2004 to satisfy any tax
liability imposed under this Act, including any audit
liability.
Beginning on July 1, 2023 and through December 31, 2032, a
retailer may accept a Sustainable Aviation Fuel Purchase
Credit certification from an air common carrier-purchaser in
satisfaction of Use Tax on aviation fuel as provided in
Section 3-87 of the Use Tax Act if the purchaser provides the
appropriate documentation as required by Section 3-87 of the
Use Tax Act. A Sustainable Aviation Fuel Purchase Credit

certification accepted by a retailer in accordance with this
paragraph may be used by that retailer to satisfy Retailers'
Occupation Tax liability (but not in satisfaction of penalty
or interest) in the amount claimed in the certification, not
to exceed 6.25% of the receipts subject to tax from a sale of
aviation fuel. In addition, for a sale of aviation fuel to
qualify to earn the Sustainable Aviation Fuel Purchase Credit,
retailers must retain in their books and records a
certification from the producer of the aviation fuel that the
aviation fuel sold by the retailer and for which a sustainable
aviation fuel purchase credit was earned meets the definition
of sustainable aviation fuel under Section 3-87 of the Use Tax
Act. The documentation must include detail sufficient for the
Department to determine the number of gallons of sustainable
aviation fuel sold.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first 2 two months of each calendar quarter, on or
before the twentieth day of the following calendar month,
stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in the business of selling tangible

personal property at retail in this State;
3. The total amount of taxable receipts received by
him during the preceding calendar month from sales of
tangible personal property by him during such preceding
calendar month, including receipts from charge and time
sales, but less all deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due; and
6. Such other reasonable information as the Department
may require.
Every person engaged in the business of selling aviation
fuel at retail in this State during the preceding calendar
month shall, instead of reporting and paying tax as otherwise
required by this Section, report and pay such tax on a separate
aviation fuel tax return. The requirements related to the
return shall be as otherwise provided in this Section.
Notwithstanding any other provisions of this Act to the
contrary, retailers selling aviation fuel shall file all
aviation fuel tax returns and shall make all aviation fuel tax
payments by electronic means in the manner and form required
by the Department. For purposes of this Section, "aviation
fuel" means jet fuel and aviation gasoline.
Beginning on October 1, 2003, any person who is not a
licensed distributor, importing distributor, or manufacturer,
as defined in the Liquor Control Act of 1934, but is engaged in

the business of selling, at retail, alcoholic liquor shall
file a statement with the Department of Revenue, in a format
and at a time prescribed by the Department, showing the total
amount paid for alcoholic liquor purchased during the
preceding month and such other information as is reasonably
required by the Department. The Department may adopt rules to
require that this statement be filed in an electronic or
telephonic format. Such rules may provide for exceptions from
the filing requirements of this paragraph. For the purposes of
this paragraph, the term "alcoholic liquor" shall have the
meaning prescribed in the Liquor Control Act of 1934.
Beginning on October 1, 2003, every distributor, importing
distributor, and manufacturer of alcoholic liquor as defined
in the Liquor Control Act of 1934, shall file a statement with
the Department of Revenue, no later than the 10th day of the
month for the preceding month during which transactions
occurred, by electronic means, showing the total amount of
gross receipts from the sale of alcoholic liquor sold or
distributed during the preceding month to purchasers;
identifying the purchaser to whom it was sold or distributed;
the purchaser's tax registration number; and such other
information reasonably required by the Department. A
distributor, importing distributor, or manufacturer of
alcoholic liquor must personally deliver, mail, or provide by
electronic means to each retailer listed on the monthly
statement a report containing a cumulative total of that

distributor's, importing distributor's, or manufacturer's
total sales of alcoholic liquor to that retailer no later than
the 10th day of the month for the preceding month during which
the transaction occurred. The distributor, importing
distributor, or manufacturer shall notify the retailer as to
the method by which the distributor, importing distributor, or
manufacturer will provide the sales information. If the
retailer is unable to receive the sales information by
electronic means, the distributor, importing distributor, or
manufacturer shall furnish the sales information by personal
delivery or by mail. For purposes of this paragraph, the term
"electronic means" includes, but is not limited to, the use of
a secure Internet website, e-mail, or facsimile.
If a total amount of less than $1 is payable, refundable or
creditable, such amount shall be disregarded if it is less
than 50 cents and shall be increased to $1 if it is 50 cents or
more.
Notwithstanding any other provision of this Act to the
contrary, retailers subject to tax on cannabis shall file all
cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has

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

Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those
payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
Any amount which is required to be shown or reported on any
return or other document under this Act shall, if such amount
is not a whole-dollar amount, be increased to the nearest
whole-dollar amount in any case where the fractional part of a
dollar is 50 cents or more, and decreased to the nearest
whole-dollar amount where the fractional part of a dollar is
less than 50 cents.
If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February, and March of a given
year being due by April 20 of such year; with the return for
April, May, and June of a given year being due by July 20 of
such year; with the return for July, August, and September of a
given year being due by October 20 of such year, and with the

return for October, November, and December of a given year
being due by January 20 of the following year.
If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
liability with the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January 20
of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act concerning
the time within which a retailer may file his return, in the
case of any retailer who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such retailer shall file a final return under this Act with the
Department not more than one month after discontinuing such
business.
Where the same person has more than one business
registered with the Department under separate registrations
under this Act, such person may not file each return that is
due as a single return covering all such registered
businesses, but shall file separate returns for each such
registered business.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with

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

connection with such business, sells any such item to a
retailer for the purpose of resale is, notwithstanding any
other provision of this Section to the contrary, authorized to
meet the return-filing requirement of this Act by reporting
the transfer of all the aircraft, watercraft, motor vehicles,
or trailers transferred for resale during a month to the
Department on the same uniform invoice-transaction reporting
return form on or before the 20th of the month following the
month in which the transfer takes place. Notwithstanding any
other provision of this Act to the contrary, all returns filed
under this paragraph must be filed by electronic means in the
manner and form as required by the Department.
Any retailer who sells only motor vehicles, watercraft,
aircraft, or trailers that are required to be registered with
an agency of this State, so that all retailers' occupation tax
liability is required to be reported, and is reported, on such
transaction reporting returns and who is not otherwise
required to file monthly or quarterly returns, need not file
monthly or quarterly returns. However, those retailers shall
be required to file returns on an annual basis.
The transaction reporting return, in the case of motor
vehicles or trailers that are required to be registered with
an agency of this State, shall be the same document as the
Uniform Invoice referred to in Section 5-402 of the Illinois
Vehicle Code and must show the name and address of the seller;
the name and address of the purchaser; the amount of the

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

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

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

with the Department, but without the vendor's 2.1% or 1.75%
discount provided for in this Section being allowed. When the
user pays the tax directly to the Department, he shall pay the
tax in the same amount and in the same form in which it would
be remitted if the tax had been remitted to the Department by
the retailer.
Refunds made by the seller during the preceding return
period to purchasers, on account of tangible personal property
returned to the seller, shall be allowed as a deduction under
subdivision 5 of his monthly or quarterly return, as the case
may be, in case the seller had theretofore included the
receipts from the sale of such tangible personal property in a
return filed by him and had paid the tax imposed by this Act
with respect to such receipts.
Where the seller is a corporation, the return filed on
behalf of such corporation shall be signed by the president,
vice-president, secretary, or treasurer or by the properly
accredited agent of such corporation.
Where the seller is a limited liability company, the
return filed on behalf of the limited liability company shall
be signed by a manager, member, or properly accredited agent
of the limited liability company.
Except as provided in this Section, the retailer filing
the return under this Section shall, at the time of filing such
return, pay to the Department the amount of tax imposed by this
Act less a discount of 2.1% prior to January 1, 1990 and 1.75%

on and after January 1, 1990, or $5 per calendar year,
whichever is greater, which is allowed to reimburse the
retailer for the expenses incurred in keeping records,
preparing and filing returns, remitting the tax and supplying
data to the Department on request. On and after January 1,
2021, a certified service provider, as defined in the Leveling
the Playing Field for Illinois Retail Act, filing the return
under this Section on behalf of a remote retailer shall, at the
time of such return, pay to the Department the amount of tax
imposed by this Act less a discount of 1.75%. A remote retailer
using a certified service provider to file a return on its
behalf, as provided in the Leveling the Playing Field for
Illinois Retail Act, is not eligible for the discount.
Beginning with returns due on or after January 1, 2025, the
vendor's discount allowed in this Section, the Service
Occupation Tax Act, the Use Tax Act, and the Service Use Tax
Act, including any local tax administered by the Department
and reported on the same return, shall not exceed $1,000 per
month in the aggregate for returns other than transaction
returns filed during the month. When determining the discount
allowed under this Section, retailers shall include the amount
of tax that would have been due at the 1% rate but for the 0%
rate imposed under Public Act 102-700. When determining the
discount allowed under this Section, retailers shall include
the amount of tax that would have been due at the 6.25% rate
but for the 1.25% rate imposed on sales tax holiday items under

Public Act 102-700. The discount under this Section is not
allowed for the 1.25% portion of taxes paid on aviation fuel
that is subject to the revenue use requirements of 49 U.S.C.
47107(b) and 49 U.S.C. 47133. Any prepayment made pursuant to
Section 2d of this Act shall be included in the amount on which
such 2.1% or 1.75% discount is computed. In the case of
retailers who report and pay the tax on a transaction by
transaction basis, as provided in this Section, such discount
shall be taken with each such tax remittance instead of when
such retailer files his periodic return, but, beginning with
returns due on or after January 1, 2025, the vendor's discount
allowed under this Section and the Use Tax Act, including any
local tax administered by the Department and reported on the
same transaction return, shall not exceed $1,000 per month for
all transaction returns filed during the month. The discount
allowed under this Section is allowed only for returns that
are filed in the manner required by this Act. The Department
may disallow the discount for retailers whose certificate of
registration is revoked at the time the return is filed, but
only if the Department's decision to revoke the certificate of
registration has become final.
Before October 1, 2000, if the taxpayer's average monthly
tax liability to the Department under this Act, the Use Tax
Act, the Service Occupation Tax Act, and the Service Use Tax
Act, excluding any liability for prepaid sales tax to be
remitted in accordance with Section 2d of this Act, was

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

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

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

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

such quarter monthly payment is not paid at the time or in the
amount required by this Section, then the taxpayer shall be
liable for penalties and interest on the difference between
the minimum amount due as a payment and the amount of such
quarter monthly payment actually and timely paid, except
insofar as the taxpayer has previously made payments for that
month to the Department in excess of the minimum payments
previously due as provided in this Section. The Department
shall make reasonable rules and regulations to govern the
quarter monthly payment amount and quarter monthly payment
dates for taxpayers who file on other than a calendar monthly
basis.
The provisions of this paragraph apply before October 1,
2001. Without regard to whether a taxpayer is required to make
quarter monthly payments as specified above, any taxpayer who
is required by Section 2d of this Act to collect and remit
prepaid taxes and has collected prepaid taxes which average in
excess of $25,000 per month during the preceding 2 complete
calendar quarters, shall file a return with the Department as
required by Section 2f and shall make payments to the
Department on or before the 7th, 15th, 22nd and last day of the
month during which such liability is incurred. If the month
during which such tax liability is incurred began prior to
September 1, 1985 (the effective date of Public Act 84-221),
each payment shall be in an amount not less than 22.5% of the
taxpayer's actual liability under Section 2d. If the month

during which such tax liability is incurred begins on or after
January 1, 1986, each payment shall be in an amount equal to
22.5% of the taxpayer's actual liability for the month or
27.5% of the taxpayer's liability for the same calendar month
of the preceding calendar year. If the month during which such
tax liability is incurred begins on or after January 1, 1987,
each payment shall be in an amount equal to 22.5% of the
taxpayer's actual liability for the month or 26.25% of the
taxpayer's liability for the same calendar month of the
preceding year. The amount of such quarter monthly payments
shall be credited against the final tax liability of the
taxpayer's return for that month filed under this Section or
Section 2f, as the case may be. Once applicable, the
requirement of the making of quarter monthly payments to the
Department pursuant to this paragraph shall continue until
such taxpayer's average monthly prepaid tax collections during
the preceding 2 complete calendar quarters is $25,000 or less.
If any such quarter monthly payment is not paid at the time or
in the amount required, the taxpayer shall be liable for
penalties and interest on such difference, except insofar as
the taxpayer has previously made payments for that month in
excess of the minimum payments previously due.
The provisions of this paragraph apply on and after
October 1, 2001. Without regard to whether a taxpayer is
required to make quarter monthly payments as specified above,
any taxpayer who is required by Section 2d of this Act to

collect and remit prepaid taxes and has collected prepaid
taxes that average in excess of $20,000 per month during the
preceding 4 complete calendar quarters shall file a return
with the Department as required by Section 2f and shall make
payments to the Department on or before the 7th, 15th, 22nd,
and last day of the month during which the liability is
incurred. Each payment shall be in an amount equal to 22.5% of
the taxpayer's actual liability for the month or 25% of the
taxpayer's liability for the same calendar month of the
preceding year. The amount of the quarter monthly payments
shall be credited against the final tax liability of the
taxpayer's return for that month filed under this Section or
Section 2f, as the case may be. Once applicable, the
requirement of the making of quarter monthly payments to the
Department pursuant to this paragraph shall continue until the
taxpayer's average monthly prepaid tax collections during the
preceding 4 complete calendar quarters (excluding the month of
highest liability and the month of lowest liability) is less
than $19,000 or until such taxpayer's average monthly
liability to the Department as computed for each calendar
quarter of the 4 preceding complete calendar quarters is less
than $20,000. If any such quarter monthly payment is not paid
at the time or in the amount required, the taxpayer shall be
liable for penalties and interest on such difference, except
insofar as the taxpayer has previously made payments for that
month in excess of the minimum payments previously due.

If any payment provided for in this Section exceeds the
taxpayer's liabilities under this Act, the Use Tax Act, the
Service Occupation Tax Act, and the Service Use Tax Act, as
shown on an original monthly return, the Department shall, if
requested by the taxpayer, issue to the taxpayer a credit
memorandum no later than 30 days after the date of payment. The
credit evidenced by such credit memorandum may be assigned by
the taxpayer to a similar taxpayer under this Act, the Use Tax
Act, the Service Occupation Tax Act, or the Service Use Tax
Act, in accordance with reasonable rules and regulations to be
prescribed by the Department. If no such request is made, the
taxpayer may credit such excess payment against tax liability
subsequently to be remitted to the Department under this Act,
the Use Tax Act, the Service Occupation Tax Act, or the Service
Use Tax Act, in accordance with reasonable rules and
regulations prescribed by the Department. If the Department
subsequently determined that all or any part of the credit
taken was not actually due to the taxpayer, the taxpayer's
2.1% and 1.75% vendor's discount shall be reduced, if
necessary, to reflect by 2.1% or 1.75% of the difference
between the credit taken and that actually due, and that
taxpayer shall be liable for penalties and interest on such
difference.
If a retailer of motor fuel is entitled to a credit under
Section 2d of this Act which exceeds the taxpayer's liability
to the Department under this Act for the month for which the

taxpayer is filing a return, the Department shall issue the
taxpayer a credit memorandum for the excess.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund, a special fund in the
State treasury which is hereby created, the net revenue
realized for the preceding month from the 1% tax imposed under
this Act.
Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund, a special
fund in the State treasury which is hereby created, 4% of the
net revenue realized for the preceding month from the 6.25%
general rate other than aviation fuel sold on or after
December 1, 2019. This exception for aviation fuel only
applies for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the County and Mass Transit District Fund 20% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol. If, in any
month, the tax on sales tax holiday items, as defined in
Section 2-8, is imposed at the rate of 1.25%, then the
Department shall pay 20% of the net revenue realized for that
month from the 1.25% rate on the selling price of sales tax
holiday items into the County and Mass Transit District Fund.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the net revenue

realized for the preceding month from the 6.25% general rate
on the selling price of tangible personal property other than
aviation fuel sold on or after December 1, 2019. This
exception for aviation fuel only applies for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be
required for refunds of the 20% portion of the tax on aviation
fuel under this Act, which amount shall be deposited into the
Aviation Fuel Sales Tax Refund Fund. The Department shall only
pay moneys into the State Aviation Program Fund and the
Aviation Fuel Sales Tax Refund Fund under this Act for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the Local Government Tax Fund 80% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of motor fuel and gasohol. If, in any month, the
tax on sales tax holiday items, as defined in Section 2-8, is
imposed at the rate of 1.25%, then the Department shall pay 80%
of the net revenue realized for that month from the 1.25% rate
on the selling price of sales tax holiday items into the Local

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

Act shall not exceed $18,000,000 in any State fiscal year. As
used in this paragraph, the "average monthly deficit" shall be
equal to the difference between the average monthly claims for
payment by the fund and the average monthly revenues deposited
into the fund, excluding payments made pursuant to this
paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, the Service
Use Tax Act, the Service Occupation Tax Act, and this Act, each
month the Department shall deposit $500,000 into the State
Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to this Act,
Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
Act, and Section 9 of the Service Occupation Tax Act, such Acts
being hereinafter called the "Tax Acts" and such aggregate of
2.2% or 3.8%, as the case may be, of moneys being hereinafter
called the "Tax Act Amount", and (2) the amount transferred to
the Build Illinois Fund from the State and Local Sales Tax
Reform Fund shall be less than the Annual Specified Amount (as

hereinafter defined), an amount equal to the difference shall
be immediately paid into the Build Illinois Fund from other
moneys received by the Department pursuant to the Tax Acts;
the "Annual Specified Amount" means the amounts specified
below for fiscal years 1986 through 1993:
Fiscal Year Annual Specified Amount
1986 $54,800,000
1987 $76,650,000
1988 $80,480,000
1989 $88,510,000
1990 $115,330,000
1991 $145,470,000
1992 $182,730,000
1993 $206,520,000;
and means the Certified Annual Debt Service Requirement (as
defined in Section 13 of the Build Illinois Bond Act) or the
Tax Act Amount, whichever is greater, for fiscal year 1994 and
each fiscal year thereafter; and further provided, that if on
the last business day of any month the sum of (1) the Tax Act
Amount required to be deposited into the Build Illinois Bond
Account in the Build Illinois Fund during such month and (2)
the amount transferred to the Build Illinois Fund from the
State and Local Sales Tax Reform Fund shall have been less than
1/12 of the Annual Specified Amount, an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to

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

received by the Department pursuant to the Tax Acts to the
Build Illinois Fund; provided, however, that any amounts paid
to the Build Illinois Fund in any fiscal year pursuant to this
sentence shall be deemed to constitute payments pursuant to
clause (b) of the first sentence of this paragraph and shall
reduce the amount otherwise payable for such fiscal year
pursuant to that clause (b). The moneys received by the
Department pursuant to this Act and required to be deposited
into the Build Illinois Fund are subject to the pledge, claim
and charge set forth in Section 12 of the Build Illinois Bond
Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000

1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000

2021 300,000,000
2022 300,000,000
2023 300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034 375,000,000
2035 375,000,000
2036 450,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the

certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, for aviation fuel sold on or after December 1, 2019,
the Department shall each month deposit into the Aviation Fuel
Sales Tax Refund Fund an amount estimated by the Department to
be required for refunds of the 80% portion of the tax on
aviation fuel under this Act. The Department shall only
deposit moneys into the Aviation Fuel Sales Tax Refund Fund
under this paragraph for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the

preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois
Tax Increment Fund 0.27% of 80% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, and the
Illinois Tax Increment Fund pursuant to the preceding
paragraphs or in any amendments to this Section hereafter
enacted, beginning on the first day of the first calendar
month to occur on or after August 26, 2014 (the effective date
of Public Act 98-1098), each month, from the collections made
under Section 9 of the Use Tax Act, Section 9 of the Service
Use Tax Act, Section 9 of the Service Occupation Tax Act, and
Section 3 of the Retailers' Occupation Tax Act, the Department
shall pay into the Tax Compliance and Administration Fund, to
be used, subject to appropriation, to fund additional auditors
and compliance personnel at the Department of Revenue, an
amount equal to 1/12 of 5% of 80% of the cash receipts
collected during the preceding fiscal year by the Audit Bureau
of the Department under the Use Tax Act, the Service Use Tax
Act, the Service Occupation Tax Act, the Retailers' Occupation
Tax Act, and associated local occupation and use taxes
administered by the Department.
Subject to payments of amounts into the Build Illinois

Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, the Energy Infrastructure Fund, and the
Tax Compliance and Administration Fund as provided in this
Section, beginning on July 1, 2018 the Department shall pay
each month into the Downstate Public Transportation Fund the
moneys required to be so paid under Section 2-3 of the
Downstate Public Transportation Act.
Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the

meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year.............................Total Deposit
2024.....................................$200,000,000
2025....................................$206,000,000
2026....................................$212,200,000
2027....................................$218,500,000
2028....................................$225,100,000
2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000
2034....................................$341,200,000
2035....................................$351,400,000
2036....................................$361,900,000
2037....................................$372,800,000
2038....................................$384,000,000
2039....................................$395,500,000
2040....................................$407,400,000
2041....................................$419,600,000
2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the County and Mass Transit
District Fund, the Local Government Tax Fund, the Build

Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 16% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning July 1,
2022 and until July 1, 2023, subject to the payment of amounts
into the County and Mass Transit District Fund, the Local
Government Tax Fund, the Build Illinois Fund, the McCormick
Place Expansion Project Fund, the Illinois Tax Increment Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 32% of the net
revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning July 1, 2023 and until July 1, 2024,
subject to the payment of amounts into the County and Mass
Transit District Fund, the Local Government Tax Fund, the
Build Illinois Fund, the McCormick Place Expansion Project
Fund, the Illinois Tax Increment Fund, and the Tax Compliance
and Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 48% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning July 1,
2024 and until July 1, 2025, subject to the payment of amounts
into the County and Mass Transit District Fund, the Local
Government Tax Fund, the Build Illinois Fund, the McCormick

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

less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.
Such annual return to the Department shall include a statement
of gross receipts as shown by the retailer's last federal
Federal income tax return. If the total receipts of the
business as reported in the federal Federal income tax return
do not agree with the gross receipts reported to the
Department of Revenue for the same period, the retailer shall
attach to his annual return a schedule showing a
reconciliation of the 2 amounts and the reasons for the
difference. The retailer's annual return to the Department
shall also disclose the cost of goods sold by the retailer
during the year covered by such return, opening and closing
inventories of such goods for such year, costs of goods used
from stock or taken from stock and given away by the retailer
during such year, payroll information of the retailer's
business during such year and any additional reasonable
information which the Department deems would be helpful in
determining the accuracy of the monthly, quarterly, or annual
returns filed by such retailer as provided for in this
Section.
If the annual information return required by this Section
is not filed when and as required, the taxpayer shall be liable
as follows:
(i) Until January 1, 1994, the taxpayer shall be
liable for a penalty equal to 1/6 of 1% of the tax due from

such taxpayer under this Act during the period to be
covered by the annual return for each month or fraction of
a month until such return is filed as required, the
penalty to be assessed and collected in the same manner as
any other penalty provided for in this Act.
(ii) On and after January 1, 1994, the taxpayer shall
be liable for a penalty as described in Section 3-4 of the
Uniform Penalty and Interest Act.
The chief executive officer, proprietor, owner, or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person who
willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and punished
accordingly. The annual return form prescribed by the
Department shall include a warning that the person signing the
return may be liable for perjury.
The provisions of this Section concerning the filing of an
annual information return do not apply to a retailer who is not
required to file an income tax return with the United States
Government.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this

transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to
such sales, if the retailers who are affected do not make
written objection to the Department to this arrangement.
Any person who promotes, organizes, or provides retail
selling space for concessionaires or other types of sellers at
the Illinois State Fair, DuQuoin State Fair, county fairs,
local fairs, art shows, flea markets, and similar exhibitions
or events, including any transient merchant as defined by
Section 2 of the Transient Merchant Act of 1987, is required to
file a report with the Department providing the name of the
merchant's business, the name of the person or persons engaged
in merchant's business, the permanent address and Illinois
Retailers Occupation Tax Registration Number of the merchant,
the dates and location of the event, and other reasonable
information that the Department may require. The report must
be filed not later than the 20th day of the month next
following the month during which the event with retail sales

was held. Any person who fails to file a report required by
this Section commits a business offense and is subject to a
fine not to exceed $250.
Any person engaged in the business of selling tangible
personal property at retail as a concessionaire or other type
of seller at the Illinois State Fair, county fairs, art shows,
flea markets, and similar exhibitions or events, or any
transient merchants, as defined by Section 2 of the Transient
Merchant Act of 1987, may be required to make a daily report of
the amount of such sales to the Department and to make a daily
payment of the full amount of tax due. The Department shall
impose this requirement when it finds that there is a
significant risk of loss of revenue to the State at such an
exhibition or event. Such a finding shall be based on evidence
that a substantial number of concessionaires or other sellers
who are not residents of Illinois will be engaging in the
business of selling tangible personal property at retail at
the exhibition or event, or other evidence of a significant
risk of loss of revenue to the State. The Department shall
notify concessionaires and other sellers affected by the
imposition of this requirement. In the absence of notification
by the Department, the concessionaires and other sellers shall
file their returns as otherwise required in this Section.
(Source: P.A. 102-634, eff. 8-27-21; 102-700, Article 60,
Section 60-30, eff. 4-19-22; 102-700, Article 65, Section
65-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff.

1-1-23; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23; 103-363,
eff. 7-28-23; revised 9-27-23.)
Section 110-25. The Prepaid Wireless 9-1-1 Surcharge Act
is amended by changing Section 20 as follows:
(50 ILCS 753/20)
Sec. 20. Administration of prepaid wireless 9-1-1
surcharge.
(a) In the administration and enforcement of this Act, the
provisions of Sections 2a, 2b, 2c, 3, 4, 5, 5a, 5b, 5c, 5d, 5e,
5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, and 12 of the
Retailers' Occupation Tax Act that are not inconsistent with
this Act, and Section 3-7 of the Uniform Penalty and Interest
Act shall apply, as far as practicable, to the subject matter
of this Act to the same extent as if those provisions were
included in this Act. References to "taxes" in these
incorporated Sections shall be construed to apply to the
administration, payment, and remittance of all surcharges
under this Act. The Department shall establish registration
and payment procedures that substantially coincide with the
registration and payment procedures that apply to the
Retailers' Occupation Tax Act.
(b) A seller shall be permitted to deduct and retain 3% of
prepaid wireless 9-1-1 surcharges that are collected by the
seller from consumers and that are remitted and timely filed

with the Department. Beginning with returns due on or after
January 1, 2025, the 3% deduction allowed under this
subsection, including any local surcharge administered by the
Department and reported on the same return, shall not exceed
$1,000 per month. Beginning January 1, 2018, the seller is
allowed to deduct and retain a portion of the prepaid wireless
9-1-1 surcharges as authorized by this subsection only if the
return is filed electronically as provided in Section 3 of the
Retailers' Occupation Tax Act. Sellers who demonstrate that
they do not have access to the Internet or demonstrate
hardship in filing electronically may petition the Department
to waive the electronic filing requirement.
(c) Other than the amounts for deposit into the Municipal
Wireless Service Emergency Fund, the Department shall pay to
the State Treasurer all prepaid wireless E911 charges,
penalties, and interest collected under this Act for deposit
into the Statewide 9-1-1 Fund. On or before the 25th day of
each calendar month, the Department shall prepare and certify
to the Comptroller the amount available to the Illinois State
Police for distribution out of the Statewide 9-1-1 Fund. The
amount certified shall be the amount (not including credit
memoranda) collected during the second preceding calendar
month by the Department plus an amount the Department
determines is necessary to offset any amounts which were
erroneously paid to a different taxing body. The amount paid
to the Statewide 9-1-1 Fund shall not include any amount equal

to the amount of refunds made during the second preceding
calendar month by the Department of Revenue to retailers under
this Act or any amount that the Department determines is
necessary to offset any amounts which were payable to a
different taxing body but were erroneously paid to the
Statewide 9-1-1 Fund. The Illinois State Police shall
distribute the funds in accordance with Section 30 of the
Emergency Telephone Safety Act. The Department may deduct an
amount, not to exceed 2% of remitted charges, to be
transferred into the Tax Compliance and Administration Fund to
reimburse the Department for its direct costs of administering
the collection and remittance of prepaid wireless 9-1-1
surcharges.
(d) The Department shall administer the collection of all
9-1-1 surcharges and may adopt and enforce reasonable rules
relating to the administration and enforcement of the
provisions of this Act as may be deemed expedient. The
Department shall require all surcharges collected under this
Act to be reported on existing forms or combined forms,
including, but not limited to, Form ST-1. Any overpayments
received by the Department for liabilities reported on
existing or combined returns shall be applied as an
overpayment of retailers' occupation tax, use tax, service
occupation tax, or service use tax liability.
(e) If a home rule municipality having a population in
excess of 500,000 as of the effective date of this amendatory

Act of the 97th General Assembly imposes an E911 surcharge
under subsection (a-5) of Section 15 of this Act, then the
Department shall pay to the State Treasurer all prepaid
wireless E911 charges, penalties, and interest collected for
deposit into the Municipal Wireless Service Emergency Fund.
All deposits into the Municipal Wireless Service Emergency
Fund shall be held by the State Treasurer as ex officio
custodian apart from all public moneys or funds of this State.
Any interest attributable to moneys in the Fund must be
deposited into the Fund. Moneys in the Municipal Wireless
Service Emergency Fund are not subject to appropriation. On or
before the 25th day of each calendar month, the Department
shall prepare and certify to the Comptroller the amount
available for disbursement to the home rule municipality out
of the Municipal Wireless Service Emergency Fund. The amount
to be paid to the Municipal Wireless Service Emergency Fund
shall be the amount (not including credit memoranda) collected
during the second preceding calendar month by the Department
plus an amount the Department determines is necessary to
offset any amounts which were erroneously paid to a different
taxing body. The amount paid to the Municipal Wireless Service
Emergency Fund shall not include any amount equal to the
amount of refunds made during the second preceding calendar
month by the Department to retailers under this Act or any
amount that the Department determines is necessary to offset
any amounts which were payable to a different taxing body but

were erroneously paid to the Municipal Wireless Service
Emergency Fund. Within 10 days after receipt by the
Comptroller of the certification provided for in this
subsection, the Comptroller shall cause the orders to be drawn
for the respective amounts in accordance with the directions
in the certification. The Department may deduct an amount, not
to exceed 2% of remitted charges, to be transferred into the
Tax Compliance and Administration Fund to reimburse the
Department for its direct costs of administering the
collection and remittance of prepaid wireless 9-1-1
surcharges.
(Source: P.A. 102-538, eff. 8-20-21.)
ARTICLE 115.
Section 115-5. The Business Corporation Act of 1983 is
amended by changing Sections 15.35 and 15.65 as follows:
(805 ILCS 5/15.35) (from Ch. 32, par. 15.35)
(Text of Section from P.A. 102-16 and 103-8)
Sec. 15.35. Franchise taxes payable by domestic
corporations. For the privilege of exercising its franchises
in this State, each domestic corporation shall pay to the
Secretary of State the following franchise taxes, computed on
the basis, at the rates and for the periods prescribed in this
Act:

(a) An initial franchise tax at the time of filing its
first report of issuance of shares.
(b) An additional franchise tax at the time of filing
(1) a report of the issuance of additional shares, or (2) a
report of an increase in paid-in capital without the
issuance of shares, or (3) an amendment to the articles of
incorporation or a report of cumulative changes in paid-in
capital, whenever any amendment or such report discloses
an increase in its paid-in capital over the amount thereof
last reported in any document, other than an annual
report, interim annual report or final transition annual
report required by this Act to be filed in the office of
the Secretary of State.
(c) An additional franchise tax at the time of filing
a report of paid-in capital following a statutory merger
or consolidation, which discloses that the paid-in capital
of the surviving or new corporation immediately after the
merger or consolidation is greater than the sum of the
paid-in capital of all of the merged or consolidated
corporations as last reported by them in any documents,
other than annual reports, required by this Act to be
filed in the office of the Secretary of State; and in
addition, the surviving or new corporation shall be liable
for a further additional franchise tax on the paid-in
capital of each of the merged or consolidated corporations
as last reported by them in any document, other than an

annual report, required by this Act to be filed with the
Secretary of State from their taxable year end to the next
succeeding anniversary month or, in the case of a
corporation which has established an extended filing
month, the extended filing month of the surviving or new
corporation; however if the taxable year ends within the
2-month period immediately preceding the anniversary month
or, in the case of a corporation which has established an
extended filing month, the extended filing month of the
surviving or new corporation the tax will be computed to
the anniversary month or, in the case of a corporation
which has established an extended filing month, the
extended filing month of the surviving or new corporation
in the next succeeding calendar year.
(d) An annual franchise tax payable each year with the
annual report which the corporation is required by this
Act to file.
On or after January 1, 2020 and prior to January 1, 2021,
the first $30 in liability is exempt from the tax imposed under
this Section. On or after January 1, 2021, and prior to January
1, 2024, the first $1,000 in liability is exempt from the tax
imposed under this Section. On or after January 1, 2024, and
before January 1, 2025, the first $5,000 in liability is
exempt from the tax imposed under this Section. On and after
January 1, 2025, the first $10,000 in liability is exempt from
the tax imposed under this Section.

(Source: P.A. 102-16, eff. 6-17-21; 103-8, eff. 6-7-23.)
(Text of Section from P.A. 102-282, 102-558, and 103-8)
Sec. 15.35. Franchise taxes payable by domestic
corporations. For the privilege of exercising its franchises
in this State, each domestic corporation shall pay to the
Secretary of State the following franchise taxes, computed on
the basis, at the rates and for the periods prescribed in this
Act:
(a) An initial franchise tax at the time of filing its
first report of issuance of shares.
(b) An additional franchise tax at the time of filing
(1) a report of the issuance of additional shares, or (2) a
report of an increase in paid-in capital without the
issuance of shares, or (3) an amendment to the articles of
incorporation or a report of cumulative changes in paid-in
capital, whenever any amendment or such report discloses
an increase in its paid-in capital over the amount thereof
last reported in any document, other than an annual
report, interim annual report or final transition annual
report required by this Act to be filed in the office of
the Secretary of State.
(c) An additional franchise tax at the time of filing
a report of paid-in capital following a statutory merger
or consolidation, which discloses that the paid-in capital
of the surviving or new corporation immediately after the

merger or consolidation is greater than the sum of the
paid-in capital of all of the merged or consolidated
corporations as last reported by them in any documents,
other than annual reports, required by this Act to be
filed in the office of the Secretary of State; and in
addition, the surviving or new corporation shall be liable
for a further additional franchise tax on the paid-in
capital of each of the merged or consolidated corporations
as last reported by them in any document, other than an
annual report, required by this Act to be filed with the
Secretary of State from their taxable year end to the next
succeeding anniversary month or, in the case of a
corporation which has established an extended filing
month, the extended filing month of the surviving or new
corporation; however if the taxable year ends within the
2-month period immediately preceding the anniversary month
or, in the case of a corporation which has established an
extended filing month, the extended filing month of the
surviving or new corporation the tax will be computed to
the anniversary month or, in the case of a corporation
which has established an extended filing month, the
extended filing month of the surviving or new corporation
in the next succeeding calendar year.
(d) An annual franchise tax payable each year with the
annual report which the corporation is required by this
Act to file.

On or after January 1, 2020 and prior to January 1, 2021,
the first $30 in liability is exempt from the tax imposed under
this Section. On or after January 1, 2021 and prior to January
1, 2024, the first $1,000 in liability is exempt from the tax
imposed under this Section. On or after January 1, 2024, and
before January 1, 2025, the first $5,000 in liability is
exempt from the tax imposed under this Section. On and after
January 1, 2025, the first $10,000 in liability is exempt from
the tax imposed under this Section.
(Source: P.A. 102-282, eff. 1-1-22; 102-558, eff. 8-20-21;
103-8, eff. 6-7-23.)
(805 ILCS 5/15.65) (from Ch. 32, par. 15.65)
Sec. 15.65. Franchise taxes payable by foreign
corporations. For the privilege of exercising its authority to
transact such business in this State as set out in its
application therefor or any amendment thereto, each foreign
corporation shall pay to the Secretary of State the following
franchise taxes, computed on the basis, at the rates and for
the periods prescribed in this Act:
(a) An initial franchise tax at the time of filing its
application for authority to transact business in this
State.
(b) An additional franchise tax at the time of filing
(1) a report of the issuance of additional shares, or (2) a
report of an increase in paid-in capital without the

issuance of shares, or (3) a report of cumulative changes
in paid-in capital or a report of an exchange or
reclassification of shares, whenever any such report
discloses an increase in its paid-in capital over the
amount thereof last reported in any document, other than
an annual report, interim annual report or final
transition annual report, required by this Act to be filed
in the office of the Secretary of State.
(c) Whenever the corporation shall be a party to a
statutory merger and shall be the surviving corporation,
an additional franchise tax at the time of filing its
report following merger, if such report discloses that the
amount represented in this State of its paid-in capital
immediately after the merger is greater than the aggregate
of the amounts represented in this State of the paid-in
capital of such of the merged corporations as were
authorized to transact business in this State at the time
of the merger, as last reported by them in any documents,
other than annual reports, required by this Act to be
filed in the office of the Secretary of State; and in
addition, the surviving corporation shall be liable for a
further additional franchise tax on the paid-in capital of
each of the merged corporations as last reported by them
in any document, other than an annual report, required by
this Act to be filed with the Secretary of State, from
their taxable year end to the next succeeding anniversary

month or, in the case of a corporation which has
established an extended filing month, the extended filing
month of the surviving corporation; however if the taxable
year ends within the 2-month period immediately preceding
the anniversary month or the extended filing month of the
surviving corporation, the tax will be computed to the
anniversary or, extended filing month of the surviving
corporation in the next succeeding calendar year.
(d) An annual franchise tax payable each year with any
annual report which the corporation is required by this
Act to file.
On or after January 1, 2020 and prior to January 1, 2021,
the first $30 in liability is exempt from the tax imposed under
this Section. On or after January 1, 2021 and before January 1,
2024, the first $1,000 in liability is exempt from the tax
imposed under this Section. On and after January 1, 2024 and
before January 1, 2025, the first $5,000 in liability is
exempt from the tax imposed under this Section. On and after
January 1, 2025, the first $10,000 in liability is exempt from
the tax imposed under this Section.
(Source: P.A. 101-9, eff. 6-5-19; 102-16, eff. 6-17-21;
102-558, eff. 8-20-21; 102-813, eff. 5-13-22.)
ARTICLE 120.
Section 120-5. The Sports Wagering Act is amended by

changing Section 25-90 as follows:
(230 ILCS 45/25-90)
Sec. 25-90. Tax; Sports Wagering Fund.
(a) For the privilege of holding a license to operate
sports wagering under this Act until June 30, 2024, this State
shall impose and collect 15% of a master sports wagering
licensee's adjusted gross sports wagering receipts from sports
wagering. The accrual method of accounting shall be used for
purposes of calculating the amount of the tax owed by the
licensee.
The taxes levied and collected pursuant to this subsection
(a) are due and payable to the Board no later than the last day
of the month following the calendar month in which the
adjusted gross sports wagering receipts were received and the
tax obligation was accrued.
(a-5) In addition to the tax imposed under subsection (a),
(d), or (d-5) of this Section, for the privilege of holding a
license to operate sports wagering under this Act, the State
shall impose and collect 2% of the adjusted gross receipts
from sports wagers that are placed within a home rule county
with a population of over 3,000,000 inhabitants, which shall
be paid, subject to appropriation from the General Assembly,
from the Sports Wagering Fund to that home rule county for the
purpose of enhancing the county's criminal justice system.
(b) The Sports Wagering Fund is hereby created as a

special fund in the State treasury. Except as otherwise
provided in this Act, all moneys collected under this Act by
the Board shall be deposited into the Sports Wagering Fund.
Through August 25, 2024, on On the 25th of each month, any
moneys remaining in the Sports Wagering Fund in excess of the
anticipated monthly expenditures from the Fund through the
next month, as certified by the Board to the State
Comptroller, shall be transferred by the State Comptroller and
the State Treasurer to the Capital Projects Fund. Beginning
September 25, 2024, on the 25th of each month, of the moneys
remaining in the Sports Wagering Fund in excess of the
anticipated monthly expenditures from the Fund through the
next month, as certified by the Board to the State
Comptroller, the State Comptroller shall direct and the State
Treasurer shall transfer 58% to the General Revenue Fund and
42% to the Capital Projects Fund.
(c) Beginning with July 2021, and on a monthly basis
thereafter, the Board shall certify to the State Comptroller
the amount of license fees collected in the month for initial
licenses issued under this Act, except for occupational
licenses. As soon after certification as practicable, the
State Comptroller shall direct and the State Treasurer shall
transfer the certified amount from the Sports Wagering Fund to
the Rebuild Illinois Projects Fund.
(d) Beginning on July 1, 2024, and for each 12-month
period thereafter, for the privilege of holding a license to

operate sports wagering under this Act, this State shall
impose a privilege tax on the master sports licensee's
adjusted gross sports wagering receipts from sports wagering
over the Internet or through a mobile application based on the
following rates:
20% of annual adjusted gross sports wagering receipts
up to and including $30,000,000.
25% of annual adjusted gross sports wagering receipts
in excess of $30,000,000 but not exceeding $50,000,000.
30% of annual adjusted gross sports wagering receipts
in excess of $50,000,000 but not exceeding $100,000,000.
35% of annual adjusted gross sports wagering receipts
in excess of $100,000,000 but not exceeding $200,000,000.
40% of annual adjusted gross sports wagering receipts
in excess of $200,000,000.
(d-5) Beginning on July 1, 2024, and for each 12-month
period thereafter, for the privilege of holding a license to
operate sports wagering under this Act, this State shall
impose a privilege tax on the master sports licensee's
adjusted gross sports wagering receipts from sports wagering
from other than over the Internet or through a mobile
application based on the following rates:
20% of annual adjusted gross sports wagering receipts
up to and including $30,000,000.
25% of annual adjusted gross sports wagering receipts
in excess of $30,000,000 but not exceeding $50,000,000.

30% of annual adjusted gross sports wagering receipts
in excess of $50,000,000 but not exceeding $100,000,000.
35% of annual adjusted gross sports wagering receipts
in excess of $100,000,000 but not exceeding $200,000,000.
40% of annual adjusted gross sports wagering receipts
in excess of $200,000,000.
(d-10) The accrual method of accounting shall be used for
purposes of calculating the amount of the tax owed by the
licensee.
(d-15) The taxes levied and collected pursuant to
subsections (d) and (d-5) are due and payable to the Board no
later than the last day of the month following the calendar
month in which the adjusted gross sports wagering receipts
were received and the tax obligation was accrued.
(e) Annually, a master sports wagering licensee shall
transmit to the Board an audit of the financial transactions
and condition of the licensee's total operations.
Additionally, within 90 days after the end of each quarter of
each fiscal year, the master sports wagering licensee shall
transmit to the Board a compliance report on engagement
procedures determined by the Board. All audits and compliance
engagements shall be conducted by certified public accountants
selected by the Board. Each certified public accountant must
be registered in the State of Illinois under the Illinois
Public Accounting Act. The compensation for each certified
public accountant shall be paid directly by the master sports

wagering licensee to the certified public accountant.
(Source: P.A. 101-31, eff. 6-28-19; 102-16, eff. 6-17-21;
102-687, eff. 12-17-21.)
ARTICLE 130.
Section 130-5. The Video Gaming Act is amended by changing
Section 60 as follows:
(230 ILCS 40/60)
Sec. 60. Imposition and distribution of tax.
(a) A tax of 30% is imposed on net terminal income and
shall be collected by the Board.
Of the tax collected under this subsection (a),
five-sixths shall be deposited into the Capital Projects Fund
and one-sixth shall be deposited into the Local Government
Video Gaming Distributive Fund.
(b) Beginning on July 1, 2019, an additional tax of 3% is
imposed on net terminal income and shall be collected by the
Board.
Beginning on July 1, 2020, an additional tax of 1% is
imposed on net terminal income and shall be collected by the
Board.
Beginning on July 1, 2024, an additional tax of 1% is
imposed on net terminal income and shall be collected by the
Board.

The tax collected under this subsection (b) shall be
deposited into the Capital Projects Fund.
(c) Revenues generated from the play of video gaming
terminals shall be deposited by the terminal operator, who is
responsible for tax payments, in a specially created, separate
bank account maintained by the video gaming terminal operator
to allow for electronic fund transfers of moneys for tax
payment.
(d) Each licensed establishment, licensed truck stop
establishment, licensed large truck stop establishment,
licensed fraternal establishment, and licensed veterans
establishment shall maintain an adequate video gaming fund,
with the amount to be determined by the Board.
(e) The State's percentage of net terminal income shall be
reported and remitted to the Board within 15 days after the
15th day of each month and within 15 days after the end of each
month by the video terminal operator. A video terminal
operator who falsely reports or fails to report the amount due
required by this Section is guilty of a Class 4 felony and is
subject to termination of his or her license by the Board. Each
video terminal operator shall keep a record of net terminal
income in such form as the Board may require. All payments not
remitted when due shall be paid together with a penalty
assessment on the unpaid balance at a rate of 1.5% per month.
(Source: P.A. 101-31, eff. 6-28-19.)

ARTICLE 135.
Section 135-5. The Property Tax Code is amended by
changing Section 15-170 as follows:
(35 ILCS 200/15-170)
Sec. 15-170. Senior citizens homestead exemption.
(a) An annual homestead exemption limited, except as
described here with relation to cooperatives or life care
facilities, to a maximum reduction set forth below from the
property's value, as equalized or assessed by the Department,
is granted for property that is occupied as a residence by a
person 65 years of age or older who is liable for paying real
estate taxes on the property and is an owner of record of the
property or has a legal or equitable interest therein as
evidenced by a written instrument, except for a leasehold
interest, other than a leasehold interest of land on which a
single family residence is located, which is occupied as a
residence by a person 65 years or older who has an ownership
interest therein, legal, equitable or as a lessee, and on
which he or she is liable for the payment of property taxes.
Before taxable year 2004, the maximum reduction shall be
$2,500 in counties with 3,000,000 or more inhabitants and
$2,000 in all other counties. For taxable years 2004 through
2005, the maximum reduction shall be $3,000 in all counties.
For taxable years 2006 and 2007, the maximum reduction shall

be $3,500. For taxable years 2008 through 2011, the maximum
reduction is $4,000 in all counties. For taxable year 2012,
the maximum reduction is $5,000 in counties with 3,000,000 or
more inhabitants and $4,000 in all other counties. For taxable
years 2013 through 2016, the maximum reduction is $5,000 in
all counties. For taxable years 2017 through 2022, the maximum
reduction is $8,000 in counties with 3,000,000 or more
inhabitants and $5,000 in all other counties. For taxable
years 2023 and thereafter, the maximum reduction is $8,000 in
counties with 3,000,000 or more inhabitants and counties that
are contiguous to a county of 3,000,000 or more inhabitants
and $5,000 in all other counties.
(b) For land improved with an apartment building owned and
operated as a cooperative, the maximum reduction from the
value of the property, as equalized by the Department, shall
be multiplied by the number of apartments or units occupied by
a person 65 years of age or older who is liable, by contract
with the owner or owners of record, for paying property taxes
on the property and is an owner of record of a legal or
equitable interest in the cooperative apartment building,
other than a leasehold interest. For land improved with a life
care facility, the maximum reduction from the value of the
property, as equalized by the Department, shall be multiplied
by the number of apartments or units occupied by persons 65
years of age or older, irrespective of any legal, equitable,
or leasehold interest in the facility, who are liable, under a

contract with the owner or owners of record of the facility,
for paying property taxes on the property. In a cooperative or
a life care facility where a homestead exemption has been
granted, the cooperative association or the management firm of
the cooperative or facility shall credit the savings resulting
from that exemption only to the apportioned tax liability of
the owner or resident who qualified for the exemption. Any
person who willfully refuses to so credit the savings shall be
guilty of a Class B misdemeanor. Under this Section and
Sections 15-175, 15-176, and 15-177, "life care facility"
means a facility, as defined in Section 2 of the Life Care
Facilities Act, with which the applicant for the homestead
exemption has a life care contract as defined in that Act.
(c) When a homestead exemption has been granted under this
Section and the person qualifying subsequently becomes a
resident of a facility licensed under the Assisted Living and
Shared Housing Act, the Nursing Home Care Act, the Specialized
Mental Health Rehabilitation Act of 2013, the ID/DD Community
Care Act, or the MC/DD Act, the exemption shall continue so
long as the residence continues to be occupied by the
qualifying person's spouse if the spouse is 65 years of age or
older, or if the residence remains unoccupied but is still
owned by the person qualified for the homestead exemption.
(d) A person who will be 65 years of age during the current
assessment year shall be eligible to apply for the homestead
exemption during that assessment year. Application shall be

made during the application period in effect for the county of
his residence.
(e) Beginning with assessment year 2003, for taxes payable
in 2004, property that is first occupied as a residence after
January 1 of any assessment year by a person who is eligible
for the senior citizens homestead exemption under this Section
must be granted a pro-rata exemption for the assessment year.
The amount of the pro-rata exemption is the exemption allowed
in the county under this Section divided by 365 and multiplied
by the number of days during the assessment year the property
is occupied as a residence by a person eligible for the
exemption under this Section. The chief county assessment
officer must adopt reasonable procedures to establish
eligibility for this pro-rata exemption.
(f) The assessor or chief county assessment officer may
determine the eligibility of a life care facility to receive
the benefits provided by this Section, by affidavit,
application, visual inspection, questionnaire or other
reasonable methods in order to ensure insure that the tax
savings resulting from the exemption are credited by the
management firm to the apportioned tax liability of each
qualifying resident. The assessor may request reasonable proof
that the management firm has so credited the exemption.
(g) The chief county assessment officer of each county
with less than 3,000,000 inhabitants shall provide to each
person allowed a homestead exemption under this Section a form

to designate any other person to receive a duplicate of any
notice of delinquency in the payment of taxes assessed and
levied under this Code on the property of the person receiving
the exemption. The duplicate notice shall be in addition to
the notice required to be provided to the person receiving the
exemption, and shall be given in the manner required by this
Code. The person filing the request for the duplicate notice
shall pay a fee of $5 to cover administrative costs to the
supervisor of assessments, who shall then file the executed
designation with the county collector. Notwithstanding any
other provision of this Code to the contrary, the filing of
such an executed designation requires the county collector to
provide duplicate notices as indicated by the designation. A
designation may be rescinded by the person who executed such
designation at any time, in the manner and form required by the
chief county assessment officer.
(h) The assessor or chief county assessment officer may
determine the eligibility of residential property to receive
the homestead exemption provided by this Section by
application, visual inspection, questionnaire or other
reasonable methods. The determination shall be made in
accordance with guidelines established by the Department.
(i) In counties with 3,000,000 or more inhabitants, for
taxable years 2010 through 2018, and beginning again in
taxable year 2024, each taxpayer who has been granted an
exemption under this Section must reapply on an annual basis.

If a reapplication is required, then the chief county
assessment officer shall mail the application to the taxpayer
at least 60 days prior to the last day of the application
period for the county.
For taxable years 2019 and thereafter through 2023, in
counties with 3,000,000 or more inhabitants, a taxpayer who
has been granted an exemption under this Section need not
reapply. However, if the property ceases to be qualified for
the exemption under this Section in any year for which a
reapplication is not required under this Section, then the
owner of record of the property shall notify the chief county
assessment officer that the property is no longer qualified.
In addition, for taxable years 2019 and thereafter through
2023, the chief county assessment officer of a county with
3,000,000 or more inhabitants shall enter into an
intergovernmental agreement with the county clerk of that
county and the Department of Public Health, as well as any
other appropriate governmental agency, to obtain information
that documents the death of a taxpayer who has been granted an
exemption under this Section. Notwithstanding any other
provision of law, the county clerk and the Department of
Public Health shall provide that information to the chief
county assessment officer. The Department of Public Health
shall supply this information no less frequently than every
calendar quarter. Information concerning the death of a
taxpayer may be shared with the county treasurer. The chief

county assessment officer shall also enter into a data
exchange agreement with the Social Security Administration or
its agent to obtain access to the information regarding deaths
in possession of the Social Security Administration. The chief
county assessment officer shall, subject to the notice
requirements under subsection (m) of Section 9-275, terminate
the exemption under this Section if the information obtained
indicates that the property is no longer qualified for the
exemption. In counties with 3,000,000 or more inhabitants, the
assessor and the county clerk recorder of deeds shall
establish policies and practices for the regular exchange of
information for the purpose of alerting the assessor whenever
the transfer of ownership of any property receiving an
exemption under this Section has occurred. When such a
transfer occurs, the assessor shall mail a notice to the new
owner of the property (i) informing the new owner that the
exemption will remain in place through the year of the
transfer, after which it will be canceled, and (ii) providing
information pertaining to the rules for reapplying for the
exemption if the owner qualifies. In counties with 3,000,000
or more inhabitants, the chief county assessment official
shall conduct, by no later than December 31 of the first year
of each reassessment cycle, as determined by Section 9-220, a
review audits of all exemptions granted under this Section for
the preceding reassessment cycle under this Section no later
than December 31, 2022 and no later than December 31, 2024. The

review audit shall be designed to ascertain whether any senior
homestead exemptions have been granted erroneously. If it is
determined that a senior homestead exemption has been
erroneously applied to a property, the chief county assessment
officer shall make use of the appropriate provisions of
Section 9-275 in relation to the property that received the
erroneous homestead exemption.
(j) In counties with less than 3,000,000 inhabitants, the
county board may by resolution provide that if a person has
been granted a homestead exemption under this Section, the
person qualifying need not reapply for the exemption. In
counties in which the county board passes such a resolution,
the chief county assessment official shall, prior to the
submission of the final abstract for the first year of each
reassessment cycle, as determined by Section 9-215, review all
exemptions granted for the preceding reassessment cycle under
this Section. The review shall be designed to ascertain
whether any senior homestead exemptions have been granted
erroneously.
In counties with less than 3,000,000 inhabitants, if the
assessor or chief county assessment officer requires annual
application for verification of eligibility for an exemption
once granted under this Section, the application shall be
mailed to the taxpayer.
(l) The assessor or chief county assessment officer shall
notify each person who qualifies for an exemption under this

Section that the person may also qualify for deferral of real
estate taxes under the Senior Citizens Real Estate Tax
Deferral Act. The notice shall set forth the qualifications
needed for deferral of real estate taxes, the address and
telephone number of county collector, and a statement that
applications for deferral of real estate taxes may be obtained
from the county collector.
(m) Notwithstanding Sections 6 and 8 of the State Mandates
Act, no reimbursement by the State is required for the
implementation of any mandate created by this Section.
(Source: P.A. 101-453, eff. 8-23-19; 101-622, eff. 1-14-20;
102-895, eff. 5-23-22.)
ARTICLE 140.
Section 140-5. The Property Tax Code is amended by
changing Sections 10-40 and 10-50 as follows:
(35 ILCS 200/10-40)
Sec. 10-40. Historic Residence Assessment Freeze Law;
definitions. This Section and Sections 10-45 through 10-85 may
be cited as the Historic Residence Assessment Freeze Law. As
used in this Section and Sections 10-45 through 10-85:
(a) "Director" means the Director of Historic
Preservation.
(b) "Approved county or municipal landmark ordinance"

means a county or municipal ordinance approved by the
Director.
(c) "Historic building" means an owner-occupied single
family residence or an owner-occupied multi-family
residence and the tract, lot or parcel upon which it is
located, or a building or buildings owned and operated as
a cooperative, if:
(1) individually listed on the National Register
of Historic Places or the Illinois Register of
Historic Places;
(2) individually designated pursuant to an
approved county or municipal landmark ordinance; or
(3) within a district listed on the National
Register of Historic Places or designated pursuant to
an approved county or municipal landmark ordinance, if
the Director determines that the building is of
historic significance to the district in which it is
located.
Historic building does not mean an individual unit of a
cooperative.
(d) "Assessment officer" means the chief county
assessment officer.
(e) "Certificate of rehabilitation" means the
certificate issued by the Director upon the renovation,
restoration, preservation or rehabilitation of an historic
building under this Code.

(f) "Rehabilitation period" means the period of time
necessary to renovate, restore, preserve or rehabilitate
an historic building as determined by the Director.
(g) "Standards for rehabilitation" means the Secretary
of Interior's standards for rehabilitation as promulgated
by the U.S. Department of the Interior.
(h) "Fair cash value" means the fair cash value of the
historic building, as finally determined for that year by
the assessment officer, board of review, Property Tax
Appeal Board, or court on the basis of the assessment
officer's property record card, representing the value of
the property prior to the commencement of rehabilitation
without consideration of any reduction reflecting value
during the rehabilitation work. The changes made to this
Section by this amendatory Act of the 103rd General
Assembly are declarative of existing law and shall not be
construed as a new enactment.
(i) "Base year valuation" means the fair cash value of
the historic building for the year in which the
rehabilitation period begins but prior to the commencement
of the rehabilitation and does not include any reduction
in value during the rehabilitation work.
(j) "Adjustment in value" means the difference for any
year between the then current fair cash value and the base
year valuation.
(k) "Eight-year valuation period" means the 8 years

from the date of the issuance of the certificate of
rehabilitation.
(l) "Adjustment valuation period" means the 4 years
following the 8 year valuation period.
(m) "Substantial rehabilitation" means interior or
exterior rehabilitation work that preserves the historic
building in a manner that significantly improves its
condition.
(n) "Approved local government" means a local
government that has been certified by the Director as:
(1) enforcing appropriate legislation for the
designation of historic buildings;
(2) having established an adequate and qualified
historic review commission;
(3) maintaining a system for the survey and
inventory of historic properties;
(4) providing for adequate public participation in
the local historic preservation program; and
(5) maintaining a system for reviewing
applications under this Section in accordance with
rules and regulations promulgated by the Director.
(o) "Cooperative" means a building or buildings and
the tract, lot, or parcel on which the building or
buildings are located, if the building or buildings are
devoted to residential uses by the owners and fee title to
the land and building or buildings is owned by a

corporation or other legal entity in which the
shareholders or other co-owners each also have a long-term
proprietary lease or other long-term arrangement of
exclusive possession for a specific unit of occupancy
space located within the same building or buildings.
(p) "Owner", in the case of a cooperative, means the
Association.
(q) "Association", in the case of a cooperative, means
the entity responsible for the administration of a
cooperative, which entity may be incorporated or
unincorporated, profit or nonprofit.
(r) "Owner-occupied single family residence" means a
residence in which the title holder of record (i) holds
fee simple ownership and (ii) occupies the property as
his, her, or their principal residence.
(s) "Owner-occupied multi-family residence" means
residential property comprised of not more than 6 living
units in which the title holder of record (i) holds fee
simple ownership and (ii) occupies one unit as his, her,
or their principal residence. The remaining units may be
leased.
The changes made to this Section by this amendatory Act of
the 91st General Assembly are declarative of existing law and
shall not be construed as a new enactment.
(Source: P.A. 90-114, eff. 1-1-98; 91-806, eff. 1-1-01.)

(35 ILCS 200/10-50)
Sec. 10-50. Valuation after 8 year valuation period.
(a) For the 4 years after the expiration of the 8-year
valuation period, the valuation for purposes of computing the
assessed valuation shall not exceed the following be as
follows:
For the first year, the base year valuation plus 25%
of the adjustment in value.
For the second year, the base year valuation plus 50%
of the adjustment in value.
For the third year, the base year valuation plus 75%
of the adjustment in value.
For the fourth year, the then current fair cash value.
(b) If the current fair cash value during the adjustment
valuation period is less than the base year valuation with the
applicable adjustment, the assessment shall be based on the
current fair cash value. The changes made to this Section by
this amendatory Act of the 103rd General Assembly are
declarative of existing law and shall not be construed as a new
enactment.
(Source: P.A. 82-1023; 88-455.)
ARTICLE 145.
Section 145-5. The Property Tax Code is amended by
changing Section 15-40 as follows:

(35 ILCS 200/15-40)
Sec. 15-40. Religious purposes, orphanages, or school and
religious purposes.
(a) Property used exclusively for:
(1) religious purposes, or
(2) school and religious purposes, or
(3) orphanages
qualifies for exemption as long as it is not used with a view
to profit.
(b) Property that is owned by
(1) churches or
(2) religious institutions or
(3) religious denominations
and that is used in conjunction therewith as housing
facilities provided for ministers (including bishops, district
superintendents and similar church officials whose ministerial
duties are not limited to a single congregation), their
spouses, children and domestic workers, performing the duties
of their vocation as ministers at such churches or religious
institutions or for such religious denominations, including
the convents and monasteries where persons engaged in
religious activities reside also qualifies for exemption.
A parsonage, convent or monastery or other housing
facility shall be considered under this Section to be
exclusively used for religious purposes when the persons who

perform religious related activities shall, as a condition of
their employment or association, reside in the facility.
(c) In Cook County, whenever any interest in a property
exempt under this Section is transferred, notice of that
transfer must be filed with the county clerk recorder. The
chief county assessment officer shall prepare and make
available a form notice for this purpose. Whenever a notice is
filed, the county clerk recorder shall transmit a copy of that
recorded notice to the chief county assessment officer within
14 days after receipt.
(Source: P.A. 92-333, eff. 8-10-01.)
ARTICLE 150.
Section 150-1. Short title. This Act may be cited as the
Interchange Fee Prohibition Act. References in this Article to
"this Act" mean this Article.
Section 150-5. Definitions. As used in this Act:
"Acquirer bank" means a member of a payment card network
that contracts with a merchant for the settlement of
electronic payment transactions. An acquirer bank may contract
directly with merchants or indirectly through a processor to
process electronic payment transactions.
"Authorization" means the process through which a merchant
requests approval for an electronic payment transaction from

the issuer.
"Clearance" means the process of transmitting final
transaction data from a merchant to an issuer for posting to
the cardholder's account and the calculation of fees and
charges, including interchange fees, that apply to the issuer
and the merchant.
"Credit card" means a card, plate, coupon book, or other
credit device existing for the purpose of obtaining money,
property, labor, or services on credit.
"Debit card" means a card or other payment code or device
issued or approved for use through a payment card network to
debit an asset account, regardless of the purpose for which
the account is established, whether authorization is based on
a signature, a personal identification number, or other means.
"Debit card" includes a general use prepaid card, as defined
in 15 U.S.C. 16931-1. "Debit card" does not include paper
checks.
"Electronic payment transaction" means a transaction in
which a person uses a debit card, a credit card, or other
payment code or device issued or approved through a payment
card network to debit a deposit account or use a line of
credit, whether authorization is based on a signature, a
personal identification number, or other means.
"Gratuity" means a voluntary monetary contribution to an
employee from a guest, patron, or customer in connection with
services rendered.

"Interchange fee" means a fee established, charged, or
received by a payment card network for the purpose of
compensating the issuer for its involvement in an electronic
payment transaction.
"Issuer" means a person issuing a debit card or credit
card or the issuer's agent.
"Merchant" means a person that collects and remits a tax.
"Payment card network" means an entity that:
(1) directly or through licensed members, processors,
or agents, provides the proprietary services,
infrastructure, and software to route information and data
for the purpose of conducting electronic payment
transaction authorization, clearance, and settlement; and
(2) a merchant uses to accept as a form of payment a
brand of debit card, credit card, or other device that may
be used to carry out electronic payment transactions.
"Person" means any individual, firm, public or private
corporation, government, partnership, association, or any
other organization or entity.
"Processor" means an entity that facilitates, services,
processes, or manages the debit or credit authorization,
billing, transfer, payment procedures, or settlement with
respect to any electronic payment transaction.
"Settlement" means the process of transmitting sales
information to the issuing bank for collection and
reimbursement of funds to the merchant and calculating and

reporting the net transaction amount to the issuer and
merchant for an electronic payment transaction that is
cleared.
"Tax" means any use and occupation tax or excise tax
imposed by the State or a unit of local government in the
State.
"Tax documentation" means documentation sufficient for the
payment card network to determine the total amount of the
electronic payment transaction and the tax or gratuity amount
of the transaction. Tax documentation may be related to a
single electronic payment transaction or multiple electronic
payment transactions aggregated over a period of time.
Examples of tax documentation include, but are not limited to,
invoices, receipts, journals, ledgers, and tax returns filed
with the Department of Revenue or local taxing authorities.
Section 150-10. Interchange fees on taxes prohibited.
(a) An issuer, a payment card network, an acquirer bank,
or a processor may not receive or charge a merchant any
interchange fee on the tax amount or gratuity of an electronic
payment transaction if the merchant informs the acquirer bank
or its designee of the tax or gratuity amount as part of the
authorization or settlement process for the electronic payment
transaction. The merchant must transmit the tax or gratuity
amount data as part of the authorization or settlement process
to avoid being charged interchange fees on the tax or gratuity

amount of an electronic payment transaction.
(b) A merchant that does not transmit the tax or gratuity
amount data in accordance with this Section may submit tax
documentation for the electronic payment transaction to the
acquirer bank or its designee no later than 180 days after the
date of the electronic payment transaction, and, within 30
days after the merchant submits the necessary tax
documentation, the issuer must credit to the merchant the
amount of interchange fees charged on the tax or gratuity
amount of the electronic payment transaction.
(c) This Section does not create liability for a payment
card network regarding the accuracy of the tax or gratuity
data reported by the merchant.
(d) It shall be unlawful for an issuer, a payment card
network, an acquirer bank, or a processor to alter or
manipulate the computation and imposition of interchange fees
by increasing the rate or amount of the fees applicable to or
imposed upon the portion of a credit or debit card transaction
not attributable to taxes or other fees charged to the
retailer to circumvent the effect of this Section.
Section 150-15. Penalties.
(a) An issuer, a payment card network, an acquirer bank, a
processor, or other designated entity that has received the
tax or gratuity amount data and violates Section 150-10 is
subject to a civil penalty of $1,000 per electronic payment

transaction, and the issuer must refund the merchant the
interchange fee calculated on the tax or gratuity amount
relative to the electronic payment transaction.
(b) An entity, other than the merchant, involved in
facilitating or processing an electronic payment transaction,
including, but not limited to, an issuer, a payment card
network, an acquirer bank, a processor, or other designated
entity, may not distribute, exchange, transfer, disseminate,
or use the electronic payment transaction data except to
facilitate or process the electronic payment transaction or as
required by law. A violation of this subsection constitutes a
violation of the Consumer Fraud and Deceptive Business
Practices Act.
Section 150-95. Severability. The provisions of this Act
are severable under Section 1.31 of the Statute on Statutes.
ARTICLE 155.
Section 155-5. The Property Tax Code is amended by
changing Sections 9-45 and 11-15 as follows:
(35 ILCS 200/9-45)
Sec. 9-45. Property index number system. The county clerk
in counties of 3,000,000 or more inhabitants and, subject to
the approval of the county board, the chief county assessment

officer or recorder, in counties of less than 3,000,000
inhabitants, may establish a property index number system
under which property may be listed for purposes of assessment,
collection of taxes or automation of the office of the
recorder. The system may be adopted in addition to, or instead
of, the method of listing by legal description as provided in
Section 9-40. The system shall describe property by township,
section, block, and parcel or lot, and may cross-reference the
street or post office address, if any, and street code number,
if any. The county clerk, county treasurer, chief county
assessment officer or recorder may establish and maintain
cross indexes of numbers assigned under the system with the
complete legal description of the properties to which the
numbers relate. Index numbers shall be assigned by the county
clerk in counties of 3,000,000 or more inhabitants, and, at
the direction of the county board in counties with less than
3,000,000 inhabitants, shall be assigned by the chief county
assessment officer or recorder. Tax maps of the county clerk,
county treasurer or chief county assessment officer shall
carry those numbers. The indexes shall be open to public
inspection and be made available to the public. Any property
index number system established prior to the effective date of
this Code shall remain valid. However, in counties with less
than 3,000,000 inhabitants, the system may be transferred to
another authority upon the approval of the county board.
Any real property used for a power generating or

automotive manufacturing facility located within a county of
less than 1,000,000 inhabitants, as to which litigation with
respect to its assessed valuation is pending or was pending as
of January 1, 1993, may be the subject of a real property tax
assessment settlement agreement among the taxpayer and taxing
districts in which it is situated. In addition, any real
property that is located in a county with fewer than 1,000,000
inhabitants and (i) is used for natural gas extraction and
fractionation or olefin and polymer manufacturing or (ii) is
used for a petroleum refinery and (ii) located within a county
of less than 1,000,000 inhabitants may be the subject of a real
property tax assessment settlement agreement among the
taxpayer and taxing districts in which the property is
situated if litigation is or was pending as to its assessed
valuation as of January 1, 2003 or thereafter. Other
appropriate authorities, which may include county and State
boards or officials, may also be parties to such agreements.
Such agreements may include the assessment of the facility or
property for any years in dispute as well as for up to 10 years
in the future. Such agreements may provide for the settlement
of issues relating to the assessed value of the facility and
may provide for related payments, refunds, claims, credits
against taxes and liabilities in respect to past and future
taxes of taxing districts, including any fund created under
Section 20-35 of this Act, all implementing the settlement
agreement. Any such agreement may provide that parties thereto

agree not to challenge assessments as provided in the
agreement. An agreement entered into on or after January 1,
1993 may provide for the classification of property that is
the subject of the agreement as real or personal during the
term of the agreement and thereafter. It may also provide that
taxing districts agree to reimburse the taxpayer for amounts
paid by the taxpayer in respect to taxes for the real property
which is the subject of the agreement to the extent levied by
those respective districts, over and above amounts which would
be due if the facility were to be assessed as provided in the
agreement. Such reimbursement may be provided in the agreement
to be made by credit against taxes of the taxpayer. No credits
shall be applied against taxes levied with respect to debt
service or lease payments of a taxing district. No referendum
approval or appropriation shall be required for such an
agreement or such credits and any such obligation shall not
constitute indebtedness of the taxing district for purposes of
any statutory limitation. The county collector shall treat
credited amounts as if they had been received by the collector
as taxes paid by the taxpayer and as if remitted to the
district. A county treasurer who is a party to such an
agreement may agree to hold amounts paid in escrow as provided
in the agreement for possible use for paying taxes until
conditions of the agreement are met and then to apply these
amounts as provided in the agreement. No such settlement
agreement shall be effective unless it shall have been

approved by the court in which such litigation is pending. Any
such agreement which has been entered into prior to adoption
of this amendatory Act of 1988 and which is contingent upon
enactment of authorizing legislation shall be binding and
enforceable.
(Source: P.A. 96-609, eff. 8-24-09.)
(35 ILCS 200/11-15)
Sec. 11-15. Method of valuation for pollution control
facilities. To determine 33 1/3% of the fair cash value of any
certified pollution control facility facilities in assessing
those facilities, the Department shall determine take into
consideration the actual or probable net earnings attributable
to the facilities in question, capitalized on the basis of
their productive earning value to their owner; the probable
net value that which could be realized by its their owner if
the facility facilities were removed and sold at a fair,
voluntary sale, giving due account to the expense of removal
and condition of the particular facility facilities in
question; and other information as the Department may consider
as bearing on the fair cash value of the facilities to their
owner, consistent with the principles set forth in this
Section. For the purposes of this Code, earnings shall be
attributed to a pollution control facility only to the extent
that its operation results in the production of a commercially
saleable by-product or increases the production or reduces the

production costs of the products or services otherwise sold by
the owner of such facility. The assessed value of the facility
shall be 33/1/3% of the fair cash value of the facility.
(Source: P.A. 83-121; 88-455.)
ARTICLE 160.
Section 160-5. The Illinois Gambling Act is amended by
changing Section 13 as follows:
(230 ILCS 10/13) (from Ch. 120, par. 2413)
Sec. 13. Wagering tax; rate; distribution.
(a) Until January 1, 1998, a tax is imposed on the adjusted
gross receipts received from gambling games authorized under
this Act at the rate of 20%.
(a-1) From January 1, 1998 until July 1, 2002, a privilege
tax is imposed on persons engaged in the business of
conducting riverboat gambling operations, based on the
adjusted gross receipts received by a licensed owner from
gambling games authorized under this Act at the following
rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
20% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $50,000,000;
25% of annual adjusted gross receipts in excess of

$50,000,000 but not exceeding $75,000,000;
30% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
35% of annual adjusted gross receipts in excess of
$100,000,000.
(a-2) From July 1, 2002 until July 1, 2003, a privilege tax
is imposed on persons engaged in the business of conducting
riverboat gambling operations, other than licensed managers
conducting riverboat gambling operations on behalf of the
State, based on the adjusted gross receipts received by a
licensed owner from gambling games authorized under this Act
at the following rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
22.5% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $50,000,000;
27.5% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000;
32.5% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
37.5% of annual adjusted gross receipts in excess of
$100,000,000 but not exceeding $150,000,000;
45% of annual adjusted gross receipts in excess of
$150,000,000 but not exceeding $200,000,000;
50% of annual adjusted gross receipts in excess of
$200,000,000.

(a-3) Beginning July 1, 2003, a privilege tax is imposed
on persons engaged in the business of conducting riverboat
gambling operations, other than licensed managers conducting
riverboat gambling operations on behalf of the State, based on
the adjusted gross receipts received by a licensed owner from
gambling games authorized under this Act at the following
rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
27.5% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $37,500,000;
32.5% of annual adjusted gross receipts in excess of
$37,500,000 but not exceeding $50,000,000;
37.5% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000;
45% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
50% of annual adjusted gross receipts in excess of
$100,000,000 but not exceeding $250,000,000;
70% of annual adjusted gross receipts in excess of
$250,000,000.
An amount equal to the amount of wagering taxes collected
under this subsection (a-3) that are in addition to the amount
of wagering taxes that would have been collected if the
wagering tax rates under subsection (a-2) were in effect shall
be paid into the Common School Fund.

The privilege tax imposed under this subsection (a-3)
shall no longer be imposed beginning on the earlier of (i) July
1, 2005; (ii) the first date after June 20, 2003 that riverboat
gambling operations are conducted pursuant to a dormant
license; or (iii) the first day that riverboat gambling
operations are conducted under the authority of an owners
license that is in addition to the 10 owners licenses
initially authorized under this Act. For the purposes of this
subsection (a-3), the term "dormant license" means an owners
license that is authorized by this Act under which no
riverboat gambling operations are being conducted on June 20,
2003.
(a-4) Beginning on the first day on which the tax imposed
under subsection (a-3) is no longer imposed and ending upon
the imposition of the privilege tax under subsection (a-5) of
this Section, a privilege tax is imposed on persons engaged in
the business of conducting gambling operations, other than
licensed managers conducting riverboat gambling operations on
behalf of the State, based on the adjusted gross receipts
received by a licensed owner from gambling games authorized
under this Act at the following rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
22.5% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $50,000,000;
27.5% of annual adjusted gross receipts in excess of

$50,000,000 but not exceeding $75,000,000;
32.5% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
37.5% of annual adjusted gross receipts in excess of
$100,000,000 but not exceeding $150,000,000;
45% of annual adjusted gross receipts in excess of
$150,000,000 but not exceeding $200,000,000;
50% of annual adjusted gross receipts in excess of
$200,000,000.
For the imposition of the privilege tax in this subsection
(a-4), amounts paid pursuant to item (1) of subsection (b) of
Section 56 of the Illinois Horse Racing Act of 1975 shall not
be included in the determination of adjusted gross receipts.
(a-5)(1) Beginning on July 1, 2020, a privilege tax is
imposed on persons engaged in the business of conducting
gambling operations, other than the owners licensee under
paragraph (1) of subsection (e-5) of Section 7 and licensed
managers conducting riverboat gambling operations on behalf of
the State, based on the adjusted gross receipts received by
such licensee from the gambling games authorized under this
Act. The privilege tax for all gambling games other than table
games, including, but not limited to, slot machines, video
game of chance gambling, and electronic gambling games shall
be at the following rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;

22.5% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $50,000,000;
27.5% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000;
32.5% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000;
37.5% of annual adjusted gross receipts in excess of
$100,000,000 but not exceeding $150,000,000;
45% of annual adjusted gross receipts in excess of
$150,000,000 but not exceeding $200,000,000;
50% of annual adjusted gross receipts in excess of
$200,000,000.
The privilege tax for table games shall be at the
following rates:
15% of annual adjusted gross receipts up to and
including $25,000,000;
20% of annual adjusted gross receipts in excess of
$25,000,000.
For the imposition of the privilege tax in this subsection
(a-5), amounts paid pursuant to item (1) of subsection (b) of
Section 56 of the Illinois Horse Racing Act of 1975 shall not
be included in the determination of adjusted gross receipts.
(2) Beginning on the first day that an owners licensee
under paragraph (1) of subsection (e-5) of Section 7 conducts
gambling operations, either in a temporary facility or a
permanent facility, a privilege tax is imposed on persons

engaged in the business of conducting gambling operations
under paragraph (1) of subsection (e-5) of Section 7, other
than licensed managers conducting riverboat gambling
operations on behalf of the State, based on the adjusted gross
receipts received by such licensee from the gambling games
authorized under this Act. The privilege tax for all gambling
games other than table games, including, but not limited to,
slot machines, video game of chance gambling, and electronic
gambling games shall be at the following rates:
12% of annual adjusted gross receipts up to and
including $25,000,000 to the State and 10.5% of annual
adjusted gross receipts up to and including $25,000,000 to
the City of Chicago;
16% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $50,000,000 to the State and
14% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $50,000,000 to the City of
Chicago;
20.1% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000 to the State and
17.4% of annual adjusted gross receipts in excess of
$50,000,000 but not exceeding $75,000,000 to the City of
Chicago;
21.4% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $100,000,000 to the State
and 18.6% of annual adjusted gross receipts in excess of

$75,000,000 but not exceeding $100,000,000 to the City of
Chicago;
22.7% of annual adjusted gross receipts in excess of
$100,000,000 but not exceeding $150,000,000 to the State
and 19.8% of annual adjusted gross receipts in excess of
$100,000,000 but not exceeding $150,000,000 to the City of
Chicago;
24.1% of annual adjusted gross receipts in excess of
$150,000,000 but not exceeding $225,000,000 to the State
and 20.9% of annual adjusted gross receipts in excess of
$150,000,000 but not exceeding $225,000,000 to the City of
Chicago;
26.8% of annual adjusted gross receipts in excess of
$225,000,000 but not exceeding $1,000,000,000 to the State
and 23.2% of annual adjusted gross receipts in excess of
$225,000,000 but not exceeding $1,000,000,000 to the City
of Chicago;
40% of annual adjusted gross receipts in excess of
$1,000,000,000 to the State and 34.7% of annual gross
receipts in excess of $1,000,000,000 to the City of
Chicago.
The privilege tax for table games shall be at the
following rates:
8.1% of annual adjusted gross receipts up to and
including $25,000,000 to the State and 6.9% of annual
adjusted gross receipts up to and including $25,000,000 to

the City of Chicago;
10.7% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $75,000,000 to the State and
9.3% of annual adjusted gross receipts in excess of
$25,000,000 but not exceeding $75,000,000 to the City of
Chicago;
11.2% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $175,000,000 to the State
and 9.8% of annual adjusted gross receipts in excess of
$75,000,000 but not exceeding $175,000,000 to the City of
Chicago;
13.5% of annual adjusted gross receipts in excess of
$175,000,000 but not exceeding $225,000,000 to the State
and 11.5% of annual adjusted gross receipts in excess of
$175,000,000 but not exceeding $225,000,000 to the City of
Chicago;
15.1% of annual adjusted gross receipts in excess of
$225,000,000 but not exceeding $275,000,000 to the State
and 12.9% of annual adjusted gross receipts in excess of
$225,000,000 but not exceeding $275,000,000 to the City of
Chicago;
16.2% of annual adjusted gross receipts in excess of
$275,000,000 but not exceeding $375,000,000 to the State
and 13.8% of annual adjusted gross receipts in excess of
$275,000,000 but not exceeding $375,000,000 to the City of
Chicago;

18.9% of annual adjusted gross receipts in excess of
$375,000,000 to the State and 16.1% of annual gross
receipts in excess of $375,000,000 to the City of Chicago.
For the imposition of the privilege tax in this subsection
(a-5), amounts paid pursuant to item (1) of subsection (b) of
Section 56 of the Illinois Horse Racing Act of 1975 shall not
be included in the determination of adjusted gross receipts.
(3) Notwithstanding the provisions of this subsection
(a-5), for the first 10 years that the privilege tax is imposed
under this subsection (a-5) or until the year preceding the
calendar year in which paragraph (4) becomes operative,
whichever occurs first, the privilege tax shall be imposed on
the modified annual adjusted gross receipts of a riverboat or
casino conducting gambling operations in the City of East St.
Louis, unless:
(1) the riverboat or casino fails to employ at least
450 people, except no minimum employment shall be required
during 2020 and 2021 or during periods that the riverboat
or casino is closed on orders of State officials for
public health emergencies or other emergencies not caused
by the riverboat or casino;
(2) the riverboat or casino fails to maintain
operations in a manner consistent with this Act or is not a
viable riverboat or casino subject to the approval of the
Board; or
(3) the owners licensee is not an entity in which

employees participate in an employee stock ownership plan
or in which the owners licensee sponsors a 401(k)
retirement plan and makes a matching employer contribution
equal to at least one-quarter of the first 12% or one-half
of the first 6% of each participating employee's
contribution, not to exceed any limitations under federal
laws and regulations.
(4) Notwithstanding the provisions of this subsection
(a-5), for 10 calendar years beginning in the year that
gambling operations commence either in a temporary or
permanent facility at an organization gaming facility located
in the City of Collinsville if the facility commences
operations within 3 years of the effective date of the changes
made to this Section by this amendatory Act of the 103rd
General Assembly, the privilege tax imposed under this
subsection (a-5) on a riverboat or casino conducting gambling
operations in the City of East St. Louis shall be reduced, if
applicable, by an amount equal to the difference in adjusted
gross receipts for the 2022 calendar year less the current
year's adjusted gross receipts, unless:
(A) the riverboat or casino fails to employ at least
350 people, except that no minimum employment shall be
required during periods that the riverboat or casino is
closed on orders of State officials for public health
emergencies or other emergencies not caused by the
riverboat or casino;

(B) the riverboat or casino fails to maintain
operations in a manner consistent with this Act or is not a
viable riverboat or casino subject to the approval of the
Board; or
(C) the riverboat or casino fails to submit audited
financial statements to the Board prepared by an
accounting firm that has been preapproved by the Board and
such statements were prepared in accordance with the
provisions of the Financial Accounting Standards Board
Accounting Standards Codification under nongovernmental
accounting principles generally accepted in the United
States.
As used in this subsection (a-5), "modified annual
adjusted gross receipts" means:
(A) for calendar year 2020, the annual adjusted gross
receipts for the current year minus the difference between
an amount equal to the average annual adjusted gross
receipts from a riverboat or casino conducting gambling
operations in the City of East St. Louis for 2014, 2015,
2016, 2017, and 2018 and the annual adjusted gross
receipts for 2018;
(B) for calendar year 2021, the annual adjusted gross
receipts for the current year minus the difference between
an amount equal to the average annual adjusted gross
receipts from a riverboat or casino conducting gambling
operations in the City of East St. Louis for 2014, 2015,

2016, 2017, and 2018 and the annual adjusted gross
receipts for 2019; and
(C) for calendar years 2022 through 2029, the annual
adjusted gross receipts for the current year minus the
difference between an amount equal to the average annual
adjusted gross receipts from a riverboat or casino
conducting gambling operations in the City of East St.
Louis for 3 years preceding the current year and the
annual adjusted gross receipts for the immediately
preceding year.
(a-6) From June 28, 2019 (the effective date of Public Act
101-31) until June 30, 2023, an owners licensee that conducted
gambling operations prior to January 1, 2011 shall receive a
dollar-for-dollar credit against the tax imposed under this
Section for any renovation or construction costs paid by the
owners licensee, but in no event shall the credit exceed
$2,000,000.
Additionally, from June 28, 2019 (the effective date of
Public Act 101-31) until December 31, 2024, an owners licensee
that (i) is located within 15 miles of the Missouri border, and
(ii) has at least 3 riverboats, casinos, or their equivalent
within a 45-mile radius, may be authorized to relocate to a new
location with the approval of both the unit of local
government designated as the home dock and the Board, so long
as the new location is within the same unit of local government
and no more than 3 miles away from its original location. Such

owners licensee shall receive a credit against the tax imposed
under this Section equal to 8% of the total project costs, as
approved by the Board, for any renovation or construction
costs paid by the owners licensee for the construction of the
new facility, provided that the new facility is operational by
July 1, 2024. In determining whether or not to approve a
relocation, the Board must consider the extent to which the
relocation will diminish the gaming revenues received by other
Illinois gaming facilities.
(a-7) Beginning in the initial adjustment year and through
the final adjustment year, if the total obligation imposed
pursuant to either subsection (a-5) or (a-6) will result in an
owners licensee receiving less after-tax adjusted gross
receipts than it received in calendar year 2018, then the
total amount of privilege taxes that the owners licensee is
required to pay for that calendar year shall be reduced to the
extent necessary so that the after-tax adjusted gross receipts
in that calendar year equals the after-tax adjusted gross
receipts in calendar year 2018, but the privilege tax
reduction shall not exceed the annual adjustment cap. If
pursuant to this subsection (a-7), the total obligation
imposed pursuant to either subsection (a-5) or (a-6) shall be
reduced, then the owners licensee shall not receive a refund
from the State at the end of the subject calendar year but
instead shall be able to apply that amount as a credit against
any payments it owes to the State in the following calendar

year to satisfy its total obligation under either subsection
(a-5) or (a-6). The credit for the final adjustment year shall
occur in the calendar year following the final adjustment
year.
If an owners licensee that conducted gambling operations
prior to January 1, 2019 expands its riverboat or casino,
including, but not limited to, with respect to its gaming
floor, additional non-gaming amenities such as restaurants,
bars, and hotels and other additional facilities, and incurs
construction and other costs related to such expansion from
June 28, 2019 (the effective date of Public Act 101-31) until
June 28, 2029 June 28, 2024 (the 5th anniversary of the
effective date of Public Act 101-31), then for each
$15,000,000 spent for any such construction or other costs
related to expansion paid by the owners licensee, the final
adjustment year shall be extended by one year and the annual
adjustment cap shall increase by 0.2% of adjusted gross
receipts during each calendar year until and including the
final adjustment year. No further modifications to the final
adjustment year or annual adjustment cap shall be made after
$75,000,000 is incurred in construction or other costs related
to expansion so that the final adjustment year shall not
extend beyond the 9th calendar year after the initial
adjustment year, not including the initial adjustment year,
and the annual adjustment cap shall not exceed 4% of adjusted
gross receipts in a particular calendar year. Construction and

other costs related to expansion shall include all project
related costs, including, but not limited to, all hard and
soft costs, financing costs, on or off-site ground, road or
utility work, cost of gaming equipment and all other personal
property, initial fees assessed for each incremental gaming
position, and the cost of incremental land acquired for such
expansion. Soft costs shall include, but not be limited to,
legal fees, architect, engineering and design costs, other
consultant costs, insurance cost, permitting costs, and
pre-opening costs related to the expansion, including, but not
limited to, any of the following: marketing, real estate
taxes, personnel, training, travel and out-of-pocket expenses,
supply, inventory, and other costs, and any other project
related soft costs.
To be eligible for the tax credits in subsection (a-6),
all construction contracts shall include a requirement that
the contractor enter into a project labor agreement with the
building and construction trades council with geographic
jurisdiction of the location of the proposed gaming facility.
Notwithstanding any other provision of this subsection
(a-7), this subsection (a-7) does not apply to an owners
licensee unless such owners licensee spends at least
$15,000,000 on construction and other costs related to its
expansion, excluding the initial fees assessed for each
incremental gaming position.
This subsection (a-7) does not apply to owners licensees

authorized pursuant to subsection (e-5) of Section 7 of this
Act.
For purposes of this subsection (a-7):
"Building and construction trades council" means any
organization representing multiple construction entities that
are monitoring or attentive to compliance with public or
workers' safety laws, wage and hour requirements, or other
statutory requirements or that are making or maintaining
collective bargaining agreements.
"Initial adjustment year" means the year commencing on
January 1 of the calendar year immediately following the
earlier of the following:
(1) the commencement of gambling operations, either in
a temporary or permanent facility, with respect to the
owners license authorized under paragraph (1) of
subsection (e-5) of Section 7 of this Act; or
(2) June 28, 2021 (24 months after the effective date
of Public Act 101-31);
provided the initial adjustment year shall not commence
earlier than June 28, 2020 (12 months after the effective date
of Public Act 101-31).
"Final adjustment year" means the 2nd calendar year after
the initial adjustment year, not including the initial
adjustment year, and as may be extended further as described
in this subsection (a-7).
"Annual adjustment cap" means 3% of adjusted gross

receipts in a particular calendar year, and as may be
increased further as otherwise described in this subsection
(a-7).
(a-8) Riverboat gambling operations conducted by a
licensed manager on behalf of the State are not subject to the
tax imposed under this Section.
(a-9) Beginning on January 1, 2020, the calculation of
gross receipts or adjusted gross receipts, for the purposes of
this Section, for a riverboat, a casino, or an organization
gaming facility shall not include the dollar amount of
non-cashable vouchers, coupons, and electronic promotions
redeemed by wagerers upon the riverboat, in the casino, or in
the organization gaming facility up to and including an amount
not to exceed 20% of a riverboat's, a casino's, or an
organization gaming facility's adjusted gross receipts.
The Illinois Gaming Board shall submit to the General
Assembly a comprehensive report no later than March 31, 2023
detailing, at a minimum, the effect of removing non-cashable
vouchers, coupons, and electronic promotions from this
calculation on net gaming revenues to the State in calendar
years 2020 through 2022, the increase or reduction in wagerers
as a result of removing non-cashable vouchers, coupons, and
electronic promotions from this calculation, the effect of the
tax rates in subsection (a-5) on net gaming revenues to this
State, and proposed modifications to the calculation.
(a-10) The taxes imposed by this Section shall be paid by

the licensed owner or the organization gaming licensee to the
Board not later than 5:00 o'clock p.m. of the day after the day
when the wagers were made.
(a-15) If the privilege tax imposed under subsection (a-3)
is no longer imposed pursuant to item (i) of the last paragraph
of subsection (a-3), then by June 15 of each year, each owners
licensee, other than an owners licensee that admitted
1,000,000 persons or fewer in calendar year 2004, must, in
addition to the payment of all amounts otherwise due under
this Section, pay to the Board a reconciliation payment in the
amount, if any, by which the licensed owner's base amount
exceeds the amount of net privilege tax paid by the licensed
owner to the Board in the then current State fiscal year. A
licensed owner's net privilege tax obligation due for the
balance of the State fiscal year shall be reduced up to the
total of the amount paid by the licensed owner in its June 15
reconciliation payment. The obligation imposed by this
subsection (a-15) is binding on any person, firm, corporation,
or other entity that acquires an ownership interest in any
such owners license. The obligation imposed under this
subsection (a-15) terminates on the earliest of: (i) July 1,
2007, (ii) the first day after August 23, 2005 (the effective
date of Public Act 94-673) that riverboat gambling operations
are conducted pursuant to a dormant license, (iii) the first
day that riverboat gambling operations are conducted under the
authority of an owners license that is in addition to the 10

owners licenses initially authorized under this Act, or (iv)
the first day that a licensee under the Illinois Horse Racing
Act of 1975 conducts gaming operations with slot machines or
other electronic gaming devices. The Board must reduce the
obligation imposed under this subsection (a-15) by an amount
the Board deems reasonable for any of the following reasons:
(A) an act or acts of God, (B) an act of bioterrorism or
terrorism or a bioterrorism or terrorism threat that was
investigated by a law enforcement agency, or (C) a condition
beyond the control of the owners licensee that does not result
from any act or omission by the owners licensee or any of its
agents and that poses a hazardous threat to the health and
safety of patrons. If an owners licensee pays an amount in
excess of its liability under this Section, the Board shall
apply the overpayment to future payments required under this
Section.
For purposes of this subsection (a-15):
"Act of God" means an incident caused by the operation of
an extraordinary force that cannot be foreseen, that cannot be
avoided by the exercise of due care, and for which no person
can be held liable.
"Base amount" means the following:
For a riverboat in Alton, $31,000,000.
For a riverboat in East Peoria, $43,000,000.
For the Empress riverboat in Joliet, $86,000,000.
For a riverboat in Metropolis, $45,000,000.

For the Harrah's riverboat in Joliet, $114,000,000.
For a riverboat in Aurora, $86,000,000.
For a riverboat in East St. Louis, $48,500,000.
For a riverboat in Elgin, $198,000,000.
"Dormant license" has the meaning ascribed to it in
subsection (a-3).
"Net privilege tax" means all privilege taxes paid by a
licensed owner to the Board under this Section, less all
payments made from the State Gaming Fund pursuant to
subsection (b) of this Section.
The changes made to this subsection (a-15) by Public Act
94-839 are intended to restate and clarify the intent of
Public Act 94-673 with respect to the amount of the payments
required to be made under this subsection by an owners
licensee to the Board.
(b) From the tax revenue from riverboat or casino gambling
deposited in the State Gaming Fund under this Section, an
amount equal to 5% of adjusted gross receipts generated by a
riverboat or a casino, other than a riverboat or casino
designated in paragraph (1), (3), or (4) of subsection (e-5)
of Section 7, shall be paid monthly, subject to appropriation
by the General Assembly, to the unit of local government in
which the casino is located or that is designated as the home
dock of the riverboat. Notwithstanding anything to the
contrary, beginning on the first day that an owners licensee
under paragraph (1), (2), (3), (4), (5), or (6) of subsection

(e-5) of Section 7 conducts gambling operations, either in a
temporary facility or a permanent facility, and for 2 years
thereafter, a unit of local government designated as the home
dock of a riverboat whose license was issued before January 1,
2019, other than a riverboat conducting gambling operations in
the City of East St. Louis, shall not receive less under this
subsection (b) than the amount the unit of local government
received under this subsection (b) in calendar year 2018.
Notwithstanding anything to the contrary and because the City
of East St. Louis is a financially distressed city, beginning
on the first day that an owners licensee under paragraph (1),
(2), (3), (4), (5), or (6) of subsection (e-5) of Section 7
conducts gambling operations, either in a temporary facility
or a permanent facility, and for 10 years thereafter, a unit of
local government designated as the home dock of a riverboat
conducting gambling operations in the City of East St. Louis
shall not receive less under this subsection (b) than the
amount the unit of local government received under this
subsection (b) in calendar year 2018.
From the tax revenue deposited in the State Gaming Fund
pursuant to riverboat or casino gambling operations conducted
by a licensed manager on behalf of the State, an amount equal
to 5% of adjusted gross receipts generated pursuant to those
riverboat or casino gambling operations shall be paid monthly,
subject to appropriation by the General Assembly, to the unit
of local government that is designated as the home dock of the

riverboat upon which those riverboat gambling operations are
conducted or in which the casino is located.
From the tax revenue from riverboat or casino gambling
deposited in the State Gaming Fund under this Section, an
amount equal to 5% of the adjusted gross receipts generated by
a riverboat designated in paragraph (3) of subsection (e-5) of
Section 7 shall be divided and remitted monthly, subject to
appropriation, as follows: 70% to Waukegan, 10% to Park City,
15% to North Chicago, and 5% to Lake County.
From the tax revenue from riverboat or casino gambling
deposited in the State Gaming Fund under this Section, an
amount equal to 5% of the adjusted gross receipts generated by
a riverboat designated in paragraph (4) of subsection (e-5) of
Section 7 shall be remitted monthly, subject to appropriation,
as follows: 70% to the City of Rockford, 5% to the City of
Loves Park, 5% to the Village of Machesney, and 20% to
Winnebago County.
From the tax revenue from riverboat or casino gambling
deposited in the State Gaming Fund under this Section, an
amount equal to 5% of the adjusted gross receipts generated by
a riverboat designated in paragraph (5) of subsection (e-5) of
Section 7 shall be remitted monthly, subject to appropriation,
as follows: 2% to the unit of local government in which the
riverboat or casino is located, and 3% shall be distributed:
(A) in accordance with a regional capital development plan
entered into by the following communities: Village of Beecher,

City of Blue Island, Village of Burnham, City of Calumet City,
Village of Calumet Park, City of Chicago Heights, City of
Country Club Hills, Village of Crestwood, Village of Crete,
Village of Dixmoor, Village of Dolton, Village of East Hazel
Crest, Village of Flossmoor, Village of Ford Heights, Village
of Glenwood, City of Harvey, Village of Hazel Crest, Village
of Homewood, Village of Lansing, Village of Lynwood, City of
Markham, Village of Matteson, Village of Midlothian, Village
of Monee, City of Oak Forest, Village of Olympia Fields,
Village of Orland Hills, Village of Orland Park, City of Palos
Heights, Village of Park Forest, Village of Phoenix, Village
of Posen, Village of Richton Park, Village of Riverdale,
Village of Robbins, Village of Sauk Village, Village of South
Chicago Heights, Village of South Holland, Village of Steger,
Village of Thornton, Village of Tinley Park, Village of
University Park, and Village of Worth; or (B) if no regional
capital development plan exists, equally among the communities
listed in item (A) to be used for capital expenditures or
public pension payments, or both.
Units of local government may refund any portion of the
payment that they receive pursuant to this subsection (b) to
the riverboat or casino.
(b-4) Beginning on the first day a licensee under
subsection (e-5) of Section 7 conducts gambling operations or
30 days after the effective date of this amendatory Act of the
103rd General Assembly, whichever is sooner, either in a

temporary facility or a permanent facility, and ending on July
31, 2042, from the tax revenue deposited in the State Gaming
Fund under this Section, $5,000,000 shall be paid annually,
subject to appropriation, to the host municipality of that
owners licensee of a license issued or re-issued pursuant to
Section 7.1 of this Act before January 1, 2012. Payments
received by the host municipality pursuant to this subsection
(b-4) may not be shared with any other unit of local
government.
(b-5) Beginning on June 28, 2019 (the effective date of
Public Act 101-31), from the tax revenue deposited in the
State Gaming Fund under this Section, an amount equal to 3% of
adjusted gross receipts generated by each organization gaming
facility located outside Madison County shall be paid monthly,
subject to appropriation by the General Assembly, to a
municipality other than the Village of Stickney in which each
organization gaming facility is located or, if the
organization gaming facility is not located within a
municipality, to the county in which the organization gaming
facility is located, except as otherwise provided in this
Section. From the tax revenue deposited in the State Gaming
Fund under this Section, an amount equal to 3% of adjusted
gross receipts generated by an organization gaming facility
located in the Village of Stickney shall be paid monthly,
subject to appropriation by the General Assembly, as follows:
25% to the Village of Stickney, 5% to the City of Berwyn, 50%

to the Town of Cicero, and 20% to the Stickney Public Health
District.
From the tax revenue deposited in the State Gaming Fund
under this Section, an amount equal to 5% of adjusted gross
receipts generated by an organization gaming facility located
in the City of Collinsville shall be paid monthly, subject to
appropriation by the General Assembly, as follows: 30% to the
City of Alton, 30% to the City of East St. Louis, and 40% to
the City of Collinsville.
Municipalities and counties may refund any portion of the
payment that they receive pursuant to this subsection (b-5) to
the organization gaming facility.
(b-6) Beginning on June 28, 2019 (the effective date of
Public Act 101-31), from the tax revenue deposited in the
State Gaming Fund under this Section, an amount equal to 2% of
adjusted gross receipts generated by an organization gaming
facility located outside Madison County shall be paid monthly,
subject to appropriation by the General Assembly, to the
county in which the organization gaming facility is located
for the purposes of its criminal justice system or health care
system.
Counties may refund any portion of the payment that they
receive pursuant to this subsection (b-6) to the organization
gaming facility.
(b-7) From the tax revenue from the organization gaming
licensee located in one of the following townships of Cook

County: Bloom, Bremen, Calumet, Orland, Rich, Thornton, or
Worth, an amount equal to 5% of the adjusted gross receipts
generated by that organization gaming licensee shall be
remitted monthly, subject to appropriation, as follows: 2% to
the unit of local government in which the organization gaming
licensee is located, and 3% shall be distributed: (A) in
accordance with a regional capital development plan entered
into by the following communities: Village of Beecher, City of
Blue Island, Village of Burnham, City of Calumet City, Village
of Calumet Park, City of Chicago Heights, City of Country Club
Hills, Village of Crestwood, Village of Crete, Village of
Dixmoor, Village of Dolton, Village of East Hazel Crest,
Village of Flossmoor, Village of Ford Heights, Village of
Glenwood, City of Harvey, Village of Hazel Crest, Village of
Homewood, Village of Lansing, Village of Lynwood, City of
Markham, Village of Matteson, Village of Midlothian, Village
of Monee, City of Oak Forest, Village of Olympia Fields,
Village of Orland Hills, Village of Orland Park, City of Palos
Heights, Village of Park Forest, Village of Phoenix, Village
of Posen, Village of Richton Park, Village of Riverdale,
Village of Robbins, Village of Sauk Village, Village of South
Chicago Heights, Village of South Holland, Village of Steger,
Village of Thornton, Village of Tinley Park, Village of
University Park, and Village of Worth; or (B) if no regional
capital development plan exists, equally among the communities
listed in item (A) to be used for capital expenditures or

public pension payments, or both.
(b-8) In lieu of the payments under subsection (b) of this
Section, from the tax revenue deposited in the State Gaming
Fund pursuant to riverboat or casino gambling operations
conducted by an owners licensee under paragraph (1) of
subsection (e-5) of Section 7, an amount equal to the tax
revenue generated from the privilege tax imposed by paragraph
(2) of subsection (a-5) that is to be paid to the City of
Chicago shall be paid monthly, subject to appropriation by the
General Assembly, as follows: (1) an amount equal to 0.5% of
the annual adjusted gross receipts generated by the owners
licensee under paragraph (1) of subsection (e-5) of Section 7
to the home rule county in which the owners licensee is located
for the purpose of enhancing the county's criminal justice
system; and (2) the balance to the City of Chicago and shall be
expended or obligated by the City of Chicago for pension
payments in accordance with Public Act 99-506.
(c) Appropriations, as approved by the General Assembly,
may be made from the State Gaming Fund to the Board (i) for the
administration and enforcement of this Act and the Video
Gaming Act, (ii) for distribution to the Illinois State Police
and to the Department of Revenue for the enforcement of this
Act and the Video Gaming Act, and (iii) to the Department of
Human Services for the administration of programs to treat
problem gambling, including problem gambling from sports
wagering. The Board's annual appropriations request must

separately state its funding needs for the regulation of
gaming authorized under Section 7.7, riverboat gaming, casino
gaming, video gaming, and sports wagering.
(c-2) An amount equal to 2% of the adjusted gross receipts
generated by an organization gaming facility located within a
home rule county with a population of over 3,000,000
inhabitants shall be paid, subject to appropriation from the
General Assembly, from the State Gaming Fund to the home rule
county in which the organization gaming licensee is located
for the purpose of enhancing the county's criminal justice
system.
(c-3) Appropriations, as approved by the General Assembly,
may be made from the tax revenue deposited into the State
Gaming Fund from organization gaming licensees pursuant to
this Section for the administration and enforcement of this
Act.
(c-4) After payments required under subsections (b),
(b-5), (b-6), (b-7), (c), (c-2), and (c-3) have been made from
the tax revenue from organization gaming licensees deposited
into the State Gaming Fund under this Section, all remaining
amounts from organization gaming licensees shall be
transferred into the Capital Projects Fund.
(c-5) (Blank).
(c-10) Each year the General Assembly shall appropriate
from the General Revenue Fund to the Education Assistance Fund
an amount equal to the amount paid into the Horse Racing Equity

Fund pursuant to subsection (c-5) in the prior calendar year.
(c-15) After the payments required under subsections (b),
(c), and (c-5) have been made, an amount equal to 2% of the
adjusted gross receipts of (1) an owners licensee that
relocates pursuant to Section 11.2, (2) an owners licensee
conducting riverboat gambling operations pursuant to an owners
license that is initially issued after June 25, 1999, or (3)
the first riverboat gambling operations conducted by a
licensed manager on behalf of the State under Section 7.3,
whichever comes first, shall be paid, subject to appropriation
from the General Assembly, from the State Gaming Fund to each
home rule county with a population of over 3,000,000
inhabitants for the purpose of enhancing the county's criminal
justice system.
(c-20) Each year the General Assembly shall appropriate
from the General Revenue Fund to the Education Assistance Fund
an amount equal to the amount paid to each home rule county
with a population of over 3,000,000 inhabitants pursuant to
subsection (c-15) in the prior calendar year.
(c-21) After the payments required under subsections (b),
(b-4), (b-5), (b-6), (b-7), (b-8), (c), (c-3), and (c-4) have
been made, an amount equal to 0.5% of the adjusted gross
receipts generated by the owners licensee under paragraph (1)
of subsection (e-5) of Section 7 shall be paid monthly,
subject to appropriation from the General Assembly, from the
State Gaming Fund to the home rule county in which the owners

licensee is located for the purpose of enhancing the county's
criminal justice system.
(c-22) After the payments required under subsections (b),
(b-4), (b-5), (b-6), (b-7), (b-8), (c), (c-3), (c-4), and
(c-21) have been made, an amount equal to 2% of the adjusted
gross receipts generated by the owners licensee under
paragraph (5) of subsection (e-5) of Section 7 shall be paid,
subject to appropriation from the General Assembly, from the
State Gaming Fund to the home rule county in which the owners
licensee is located for the purpose of enhancing the county's
criminal justice system.
(c-25) From July 1, 2013 and each July 1 thereafter
through July 1, 2019, $1,600,000 shall be transferred from the
State Gaming Fund to the Chicago State University Education
Improvement Fund.
On July 1, 2020 and each July 1 thereafter, $3,000,000
shall be transferred from the State Gaming Fund to the Chicago
State University Education Improvement Fund.
(c-30) On July 1, 2013 or as soon as possible thereafter,
$92,000,000 shall be transferred from the State Gaming Fund to
the School Infrastructure Fund and $23,000,000 shall be
transferred from the State Gaming Fund to the Horse Racing
Equity Fund.
(c-35) Beginning on July 1, 2013, in addition to any
amount transferred under subsection (c-30) of this Section,
$5,530,000 shall be transferred monthly from the State Gaming

Fund to the School Infrastructure Fund.
(d) From time to time, through June 30, 2021, the Board
shall transfer the remainder of the funds generated by this
Act into the Education Assistance Fund.
(d-5) Beginning on July 1, 2021, on the last day of each
month, or as soon thereafter as possible, after all the
required expenditures, distributions, and transfers have been
made from the State Gaming Fund for the month pursuant to
subsections (b) through (c-35), at the direction of the Board,
the Comptroller shall direct and the Treasurer shall transfer
$22,500,000, along with any deficiencies in such amounts from
prior months in the same fiscal year, from the State Gaming
Fund to the Education Assistance Fund; then, at the direction
of the Board, the Comptroller shall direct and the Treasurer
shall transfer the remainder of the funds generated by this
Act, if any, from the State Gaming Fund to the Capital Projects
Fund.
(e) Nothing in this Act shall prohibit the unit of local
government designated as the home dock of the riverboat from
entering into agreements with other units of local government
in this State or in other states to share its portion of the
tax revenue.
(f) To the extent practicable, the Board shall administer
and collect the wagering taxes imposed by this Section in a
manner consistent with the provisions of Sections 4, 5, 5a,
5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of

the Retailers' Occupation Tax Act and Section 3-7 of the
Uniform Penalty and Interest Act.
(Source: P.A. 102-16, eff. 6-17-21; 102-538, eff. 8-20-21;
102-689, eff. 12-17-21; 102-699, eff. 4-19-22; 103-8, eff.
6-7-23; 103-574, eff. 12-8-23.)
ARTICLE 165.
Section 165-5. The Illinois Local Library Act is amended
by changing Section 4-9 as follows:
(75 ILCS 5/4-9) (from Ch. 81, par. 4-9)
Sec. 4-9. In townships and in cities, villages and
incorporated towns having a population of 500,000 or less, the
board of trustees shall require the treasurer of such board or
such other person as may be designated as the custodian of the
moneys paid over to such board to give a bond to be approved by
such board and in such amount, not less than 10% 50% of the
total funds received by the library in the last fiscal year,
conditioned that he will safely keep and pay over upon the
order of such board all funds received and held by him for such
board of trustees. For a library in a city, village,
incorporated town or township, the board of library trustees
may designate the treasurer of the corporate authority, or the
supervisor in the case of a township, as the custodian of the
library fund, and the bond given by the treasurer or the

supervisor shall satisfy the bond requirements of this section
when properly endorsed. The cost of any surety bond shall be
borne by the library. As an alternative to a personal bond on
the treasurer or custodian of funds, the board of trustees may
require the treasurer or custodian to secure for the library
an insurance policy or other insurance instrument that
provides the library with coverage for negligent or
intentional acts by library officials and employees that could
result in the loss of library funds. The coverage shall be in
an amount at least equal to 10% 50% of the average amount of
the library's operating fund from the prior 3 fiscal years.
The coverage shall be placed with an insurer approved by the
board. The cost of any such coverage shall be borne by the
library. The library shall provide the Illinois State Library
a copy of the library's certificate of insurance at the time
the library's annual report is filed.
(Source: P.A. 97-101, eff. 1-1-12.)
Section 165-10. The Illinois Library System Act is amended
by changing Section 5 as follows:
(75 ILCS 10/5) (from Ch. 81, par. 115)
Sec. 5. Each library system created as provided in Section
4 of this Act shall be governed by a board of directors
numbering at least 5 and no more than 15 persons, except as
required by Section 6 for library systems in cities with a

population of 500,000 or more. The board shall be
representative of the variety of library interests in the
system, and at least a majority shall be elected or selected
from the governing boards of the member public libraries, with
not more than one director representing a single member
library. For library systems as defined in subparagraph (3) of
the definition of "library system" in Section 2, the board
members shall be representative of the types of libraries that
library system serves. The number of directors, the manner of
election or selection, the term of office and the provision
for filling vacancies shall be determined by the system
governing board except that all board members must be eligible
electors in the geographical area of the system. No director
of any library system, however, shall be permitted to serve
for more than a total of 6 years unless 2 years have elapsed
since his sixth year of service.
The board of directors shall elect a president, secretary
and treasurer. Before entering upon his duties, the treasurer
shall be required to give a bond in an amount to be approved by
the board, but in no case shall such amount be less than 10%
50% of the system's area and per capita grant for the previous
year, conditioned that he will safely keep and pay over upon
the order of such board all funds received and held by him for
the library system. As an alternative to a personal bond on the
treasurer, the board of trustees may require the treasurer to
secure for the system an insurance policy or other insurance

instrument that provides the library with coverage for
negligent or intentional acts by system officials and
employees that could result in the loss of system funds. The
coverage shall be in an amount at least equal to 10% 50% of the
average amount of the system's operating fund from the prior 3
fiscal years. The coverage shall be placed with an insurer
approved by the board. The cost of any such coverage shall be
borne by the system. The system shall provide the Illinois
State Library a copy of the system's certificate of insurance
at the time the system's annual report is filed. The funds of
the library system shall be deposited in a bank or savings and
loan association designated by the board of directors and
shall be expended only under the direction of such board upon
properly authenticated vouchers.
No bank or savings and loan association shall receive
public funds as permitted by this Section, unless it has
complied with the requirements established pursuant to Section
6 of the Public Funds Investment Act.
The members of the board of directors of the library
system shall serve without compensation but their actual and
necessary expenses shall be a proper charge against the
library fund.
(Source: P.A. 97-101, eff. 1-1-12.)
Section 165-15. The Public Library District Act of 1991 is
amended by changing Section 30-45 as follows:

(75 ILCS 16/30-45)
Sec. 30-45. Duties of officers.
(a) The duties of the officers of the board are as provided
in this Section.
(b) The president shall preside over all meetings, appoint
members of committees authorized by the district's
regulations, and perform other duties specified by the
district's regulations, ordinances, or other appropriate
action. In the president's absence, the vice president shall
preside at meetings. The president shall not have or exercise
veto powers.
(c) The vice president's duties shall be prescribed by
regulations.
(d) The treasurer shall keep and maintain accounts and
records of the district during the treasurer's term in office,
indicating in those accounts and records a record of all
receipts, disbursements, and balances in any funds.
Annual audit and financial report requirements shall
conform with Section 3 of the Governmental Account Audit Act.
(e) The treasurer shall give bond to the district to
faithfully discharge the duties of the office and to account
to the district for all district funds coming into the
treasurer's hands. The bond shall be in an amount and with
sureties approved by the board. The amount of the bond shall be
based upon a minimum of 10% 50% of the total funds received by

the district in the last previous fiscal year. The cost of any
surety bond shall be borne by the district. As an alternative
to a personal bond on the treasurer, the treasurer may secure
for the district an insurance policy or other insurance
instrument that provides the district with coverage for
negligent or intentional acts by district officials and
employees that could result in the loss of district funds. The
coverage shall be in an amount at least equal to 10% 50% of the
average amount of the district's operating fund from the prior
3 fiscal years. The coverage shall be placed with an insurer
approved by the board. The cost of any such coverage shall be
borne by the district. The system shall provide the Illinois
State Library a copy of the district's certificate of
insurance at the time the district's annual report is filed.
(f) Any person, entity, or public body or agency
possessing district funds, property, or records shall, upon
demand by any trustee, transfer and release the funds,
property, or records to the treasurer.
(g) The secretary shall keep and maintain appropriate
records for his or her term in office and shall include in
those records a record of the minutes of all meetings, the
names of those in attendance, the ordinances enacted, the
resolutions and regulations adopted, and all other pertinent
written matter affecting the operation of the district. The
secretary may administer oaths and affirmations for the
purposes of this Act.

(Source: P.A. 97-101, eff. 1-1-12.)
ARTICLE 170.
Section 170-1. Short title. This Act may be cited as the
Illinois Gives Tax Credit Act. References in this Article to
"this Act" mean this Article.
Section 170-5. Definitions. As used in this Act:
"Business entity" means a corporation (including a
Subchapter S corporation), trust, estate, partnership, limited
liability company, or sole proprietorship.
"Credit-eligible endowment gift" means an endowment gift
for which a taxpayer intends to apply for an income tax credit
under this Act.
"Department" means the Department of Revenue.
"Donor advised fund" has the meaning given to that term in
subsection (d) of Section 4966 of the Internal Revenue Code of
1986.
"Endowment gift" means an irrevocable contribution to a
permanent endowment fund held by a qualified community
foundation.
"Permanent endowment fund" means a fund that (i) is held
by a qualified community foundation, (ii) provides charitable
grants exclusively for the benefit of residents of the State
or charities and charitable projects located in the State,

(iii) is intended to exist in perpetuity, (iv) has an annual
spending rate based on the foundation spending policy, but not
to exceed 7%, and (v) is not a donor advised fund.
"Qualified community foundation" means a community
foundation or similar publicly supported organization
described in Section 170 (b)(1)(A)(vi) of the Internal Revenue
Code of 1986 that is organized or operating in this State and
that substantially complies with the national standards for
U.S. community foundations established by the Community
Foundations National Standards, as determined by the
Department.
"Taxpayer" means any individual who is subject to the tax
imposed under subsections (a) and (b) of Section 201 of the
Illinois Income Tax Act or any business entity that is subject
to the tax imposed under subsections (a) and (b) of Section 201
of the Illinois Income Tax Act.
Section 170-10. Tax credit awards; limitations.
(a) For taxable years ending on or after December 31, 2025
and ending before January 1, 2030, the Department shall award,
in accordance with this Act, income tax credits to taxpayers
who provide an endowment gift to a permanent endowment fund
during the taxable year and receive a certificate of receipt
under Section 170-15 for that gift. Subject to the limitations
in this Section, the amount of the credit that may be awarded
to a taxpayer by the Department under this Act is an amount

equal to 25% of the endowment gift.
(b) The aggregate amount of all Illinois Gives tax credits
awarded by the Department under this Act in any calendar year
may not exceed $5,000,000.
(c) The aggregate amount of all Illinois Gives tax credits
that the Department may award to any taxpayer under this Act in
any calendar year may not exceed $100,000.
(d) The amount of contributions to any specific qualified
community foundation that are eligible for Illinois Gives tax
credits under this Section in any calendar year shall not
exceed $3,000,000.
(e) Of the annual amount available for tax credits, 25%
must be reserved for endowment gifts that do not exceed the
small gift maximum set forth in this subsection. The small
gift maximum is $25,000. For purposes of determining if a
donation meets the small gift maximum, the amount of the
credit authorization certificate under Section 170-15 shall be
used.
(f) For the purpose of this Section, a credit is
considered to be awarded on the date the Department issues an
approved contribution authorization certificate under Section
170-15.
Section 170-15. Applications for tax credits.
(a) The taxpayer shall apply to the Department, in the
form and manner prescribed by the Department, for a

contribution authorization certificate. A taxpayer who makes
more than one credit-eligible endowment gift must make a
separate application for each contribution authorization
certificate. Applications under this subsection shall be
reviewed by the Department and shall either be approved or
denied. Each approved contribution authorization certificate
shall be sent to the taxpayer within 3 business days after the
certificate is approved. The Department shall maintain on its
website a running total of: (i) the total amount of credits
remaining under this Act for which taxpayers may apply for a
contribution authorization certificate issued in the calendar
year; (ii) the total amount of credits allocated during the
calendar year for each specific community foundation; and
(iii) the total amount remaining for the calendar year under
the small gift maximum set forth in Section 170-10. Those
running totals shall be updated every business day.
(b) The taxpayer shall make the endowment gift to the
permanent endowment fund either prior to or within 10 business
days after the taxpayer receives the approved contribution
authorization certificate under subsection (a). The qualified
community foundation shall, within 30 business days after
receipt of an endowment gift for which a contribution
authorization certificate has been approved by the Department
under subsection (a), issue to the taxpayer a written
certificate of receipt, which shall contain the information
required by the Department by rule. No receipt shall be issued

for amounts that are not actually received by the qualified
community foundation within 10 business days after the
taxpayer receives the approved contribution authorization
certificate.
Section 170-20. Approval to issue certificates of receipt.
(a) A qualified community foundation shall submit an
application for approval to issue certificates of receipt, in
the form and manner prescribed by the Department, provided
that each application shall include:
(1) documentary evidence that the qualified community
foundation meets the qualifications under Section
170(b)(1)(A)(vi) of the Internal Revenue Code and
substantially complies with the standards established by
Community Foundations National Standards;
(2) certification that the qualified community
foundation holds a permanent endowment fund meeting the
criteria established in Section 170-5;
(3) a list of the names and addresses of all members of
the governing board of the qualified community foundation;
and
(4) a copy of the most recent financial audit of the
qualified community foundation's accounts and records
conducted by an independent certified public accountant in
accordance with auditing standards generally accepted in
the United States, government auditing standards, and

rules adopted by the Department.
(b) The Department shall review and either approve or deny
each application to issue certificates of receipt pursuant to
this Act. Approval or denial of an application shall be made on
a periodic basis. Applicants shall be notified of the
Department's determination within 30 business days after the
application is received.
Section 170-25. Certificates of receipt.
(a) No qualified community foundation shall issue a
certificate of receipt for any qualified contribution made by
a taxpayer under this Act unless that qualified community
foundation has been approved to issue certificates of receipt
pursuant to Section 170-20 of this Act.
(b) No qualified community foundation shall issue a
certificate of receipt for a contribution made by a taxpayer
unless the taxpayer has been issued a credit authorization
certificate by the Department.
(c) If a taxpayer makes a contribution to a qualified
community foundation prior to the date by which the authorized
contribution shall be made as provided in Section 170-15, the
qualified community foundation shall, within 30 business days
after receipt of the authorized contribution, issue to the
taxpayer a written certificate of receipt.
(d) If a taxpayer fails to make all or a portion of a
contribution prior to the date by which such authorized

contribution is required to be made, the taxpayer shall not be
entitled to a certificate of receipt for that portion of the
authorized contribution not made.
(e) Each certificate of receipt shall state:
(1) the name and address of the issuing qualified
community foundation;
(2) the taxpayer's name and address;
(3) the date of each qualified contribution;
(4) the amount of each qualified contribution;
(5) the total qualified contribution amount; and
(6) any other information that the Department deems
necessary.
(f) Upon the issuance of a certificate of receipt, the
issuing qualified community foundation shall, within 10
business days after issuing the certificate of receipt,
provide the Department with notification of the issuance of
such certificate, in the form and manner prescribed by the
Department, provided that such notification shall include:
(1) the taxpayer's name and address;
(2) the date of the issuance of a certificate of
receipt;
(3) the qualified contribution date or dates and the
amounts contributed on such dates;
(4) the total qualified contribution listed on such
certificates;
(5) the issuing qualified community foundation's name

and address; and
(6) any other information the Department may deem
necessary.
(g) Any portion of a contribution that a taxpayer fails to
make by the date indicated on the authorized contribution
certificate shall no longer be deducted from the cap
prescribed in Section 170-10 of this Act.
Section 170-30. Annual report. By March 31, 2026, and by
March 31 of each subsequent year, the Department must submit
an annual report to the Governor and the General Assembly
concerning the activities conducted under this Act during the
previous calendar year. The report must include a detailed
listing of tax credits authorized under this Act by the
Department. The report may not disclose any information if the
disclosure would violate Section 917 of the Illinois Income
Tax Act.
Section 170-35. Rulemaking. The Department may adopt rules
for the implementation of this Act.
Section 170-90. The Illinois Income Tax Act is amended by
changing Section 203 and by adding Section 241 as follows:
(35 ILCS 5/203)
Sec. 203. Base income defined.

(a) Individuals.
(1) In general. In the case of an individual, base
income means an amount equal to the taxpayer's adjusted
gross income for the taxable year as modified by paragraph
(2).
(2) Modifications. The adjusted gross income referred
to in paragraph (1) shall be modified by adding thereto
the sum of the following amounts:
(A) An amount equal to all amounts paid or accrued
to the taxpayer as interest or dividends during the
taxable year to the extent excluded from gross income
in the computation of adjusted gross income, except
stock dividends of qualified public utilities
described in Section 305(e) of the Internal Revenue
Code;
(B) An amount equal to the amount of tax imposed by
this Act to the extent deducted from gross income in
the computation of adjusted gross income for the
taxable year;
(C) An amount equal to the amount received during
the taxable year as a recovery or refund of real
property taxes paid with respect to the taxpayer's
principal residence under the Revenue Act of 1939 and
for which a deduction was previously taken under
subparagraph (L) of this paragraph (2) prior to July
1, 1991, the retrospective application date of Article

4 of Public Act 87-17. In the case of multi-unit or
multi-use structures and farm dwellings, the taxes on
the taxpayer's principal residence shall be that
portion of the total taxes for the entire property
which is attributable to such principal residence;
(D) An amount equal to the amount of the capital
gain deduction allowable under the Internal Revenue
Code, to the extent deducted from gross income in the
computation of adjusted gross income;
(D-5) An amount, to the extent not included in
adjusted gross income, equal to the amount of money
withdrawn by the taxpayer in the taxable year from a
medical care savings account and the interest earned
on the account in the taxable year of a withdrawal
pursuant to subsection (b) of Section 20 of the
Medical Care Savings Account Act or subsection (b) of
Section 20 of the Medical Care Savings Account Act of
2000;
(D-10) For taxable years ending after December 31,
1997, an amount equal to any eligible remediation
costs that the individual deducted in computing
adjusted gross income and for which the individual
claims a credit under subsection (l) of Section 201;
(D-15) For taxable years 2001 and thereafter, an
amount equal to the bonus depreciation deduction taken
on the taxpayer's federal income tax return for the

taxable year under subsection (k) of Section 168 of
the Internal Revenue Code;
(D-16) If the taxpayer sells, transfers, abandons,
or otherwise disposes of property for which the
taxpayer was required in any taxable year to make an
addition modification under subparagraph (D-15), then
an amount equal to the aggregate amount of the
deductions taken in all taxable years under
subparagraph (Z) with respect to that property.
If the taxpayer continues to own property through
the last day of the last tax year for which a
subtraction is allowed with respect to that property
under subparagraph (Z) and for which the taxpayer was
allowed in any taxable year to make a subtraction
modification under subparagraph (Z), then an amount
equal to that subtraction modification.
The taxpayer is required to make the addition
modification under this subparagraph only once with
respect to any one piece of property;
(D-17) An amount equal to the amount otherwise
allowed as a deduction in computing base income for
interest paid, accrued, or incurred, directly or
indirectly, (i) for taxable years ending on or after
December 31, 2004, to a foreign person who would be a
member of the same unitary business group but for the
fact that foreign person's business activity outside

the United States is 80% or more of the foreign
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business
group but for the fact that the person is prohibited
under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily
required to apportion business income under different
subsections of Section 304. The addition modification
required by this subparagraph shall be reduced to the
extent that dividends were included in base income of
the unitary group for the same taxable year and
received by the taxpayer or by a member of the
taxpayer's unitary business group (including amounts
included in gross income under Sections 951 through
964 of the Internal Revenue Code and amounts included
in gross income under Section 78 of the Internal
Revenue Code) with respect to the stock of the same
person to whom the interest was paid, accrued, or
incurred.
This paragraph shall not apply to the following:
(i) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person who
is subject in a foreign country or state, other
than a state which requires mandatory unitary
reporting, to a tax on or measured by net income

with respect to such interest; or
(ii) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer can establish, based on a
preponderance of the evidence, both of the
following:
(a) the person, during the same taxable
year, paid, accrued, or incurred, the interest
to a person that is not a related member, and
(b) the transaction giving rise to the
interest expense between the taxpayer and the
person did not have as a principal purpose the
avoidance of Illinois income tax, and is paid
pursuant to a contract or agreement that
reflects an arm's-length interest rate and
terms; or
(iii) the taxpayer can establish, based on
clear and convincing evidence, that the interest
paid, accrued, or incurred relates to a contract
or agreement entered into at arm's-length rates
and terms and the principal purpose for the
payment is not federal or Illinois tax avoidance;
or
(iv) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer establishes by clear and convincing

evidence that the adjustments are unreasonable; or
if the taxpayer and the Director agree in writing
to the application or use of an alternative method
of apportionment under Section 304(f).
Nothing in this subsection shall preclude the
Director from making any other adjustment
otherwise allowed under Section 404 of this Act
for any tax year beginning after the effective
date of this amendment provided such adjustment is
made pursuant to regulation adopted by the
Department and such regulations provide methods
and standards by which the Department will utilize
its authority under Section 404 of this Act;
(D-18) An amount equal to the amount of intangible
expenses and costs otherwise allowed as a deduction in
computing base income, and that were paid, accrued, or
incurred, directly or indirectly, (i) for taxable
years ending on or after December 31, 2004, to a
foreign person who would be a member of the same
unitary business group but for the fact that the
foreign person's business activity outside the United
States is 80% or more of that person's total business
activity and (ii) for taxable years ending on or after
December 31, 2008, to a person who would be a member of
the same unitary business group but for the fact that
the person is prohibited under Section 1501(a)(27)

from being included in the unitary business group
because he or she is ordinarily required to apportion
business income under different subsections of Section
304. The addition modification required by this
subparagraph shall be reduced to the extent that
dividends were included in base income of the unitary
group for the same taxable year and received by the
taxpayer or by a member of the taxpayer's unitary
business group (including amounts included in gross
income under Sections 951 through 964 of the Internal
Revenue Code and amounts included in gross income
under Section 78 of the Internal Revenue Code) with
respect to the stock of the same person to whom the
intangible expenses and costs were directly or
indirectly paid, incurred, or accrued. The preceding
sentence does not apply to the extent that the same
dividends caused a reduction to the addition
modification required under Section 203(a)(2)(D-17) of
this Act. As used in this subparagraph, the term
"intangible expenses and costs" includes (1) expenses,
losses, and costs for, or related to, the direct or
indirect acquisition, use, maintenance or management,
ownership, sale, exchange, or any other disposition of
intangible property; (2) losses incurred, directly or
indirectly, from factoring transactions or discounting
transactions; (3) royalty, patent, technical, and

copyright fees; (4) licensing fees; and (5) other
similar expenses and costs. For purposes of this
subparagraph, "intangible property" includes patents,
patent applications, trade names, trademarks, service
marks, copyrights, mask works, trade secrets, and
similar types of intangible assets.
This paragraph shall not apply to the following:
(i) any item of intangible expenses or costs
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person who
is subject in a foreign country or state, other
than a state which requires mandatory unitary
reporting, to a tax on or measured by net income
with respect to such item; or
(ii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, if the taxpayer can establish, based
on a preponderance of the evidence, both of the
following:
(a) the person during the same taxable
year paid, accrued, or incurred, the
intangible expense or cost to a person that is
not a related member, and
(b) the transaction giving rise to the
intangible expense or cost between the
taxpayer and the person did not have as a

principal purpose the avoidance of Illinois
income tax, and is paid pursuant to a contract
or agreement that reflects arm's-length terms;
or
(iii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person if
the taxpayer establishes by clear and convincing
evidence, that the adjustments are unreasonable;
or if the taxpayer and the Director agree in
writing to the application or use of an
alternative method of apportionment under Section
304(f);
Nothing in this subsection shall preclude the
Director from making any other adjustment
otherwise allowed under Section 404 of this Act
for any tax year beginning after the effective
date of this amendment provided such adjustment is
made pursuant to regulation adopted by the
Department and such regulations provide methods
and standards by which the Department will utilize
its authority under Section 404 of this Act;
(D-19) For taxable years ending on or after
December 31, 2008, an amount equal to the amount of
insurance premium expenses and costs otherwise allowed
as a deduction in computing base income, and that were

paid, accrued, or incurred, directly or indirectly, to
a person who would be a member of the same unitary
business group but for the fact that the person is
prohibited under Section 1501(a)(27) from being
included in the unitary business group because he or
she is ordinarily required to apportion business
income under different subsections of Section 304. The
addition modification required by this subparagraph
shall be reduced to the extent that dividends were
included in base income of the unitary group for the
same taxable year and received by the taxpayer or by a
member of the taxpayer's unitary business group
(including amounts included in gross income under
Sections 951 through 964 of the Internal Revenue Code
and amounts included in gross income under Section 78
of the Internal Revenue Code) with respect to the
stock of the same person to whom the premiums and costs
were directly or indirectly paid, incurred, or
accrued. The preceding sentence does not apply to the
extent that the same dividends caused a reduction to
the addition modification required under Section
203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this
Act;
(D-20) For taxable years beginning on or after
January 1, 2002 and ending on or before December 31,
2006, in the case of a distribution from a qualified

tuition program under Section 529 of the Internal
Revenue Code, other than (i) a distribution from a
College Savings Pool created under Section 16.5 of the
State Treasurer Act or (ii) a distribution from the
Illinois Prepaid Tuition Trust Fund, an amount equal
to the amount excluded from gross income under Section
529(c)(3)(B). For taxable years beginning on or after
January 1, 2007, in the case of a distribution from a
qualified tuition program under Section 529 of the
Internal Revenue Code, other than (i) a distribution
from a College Savings Pool created under Section 16.5
of the State Treasurer Act, (ii) a distribution from
the Illinois Prepaid Tuition Trust Fund, or (iii) a
distribution from a qualified tuition program under
Section 529 of the Internal Revenue Code that (I)
adopts and determines that its offering materials
comply with the College Savings Plans Network's
disclosure principles and (II) has made reasonable
efforts to inform in-state residents of the existence
of in-state qualified tuition programs by informing
Illinois residents directly and, where applicable, to
inform financial intermediaries distributing the
program to inform in-state residents of the existence
of in-state qualified tuition programs at least
annually, an amount equal to the amount excluded from
gross income under Section 529(c)(3)(B).

For the purposes of this subparagraph (D-20), a
qualified tuition program has made reasonable efforts
if it makes disclosures (which may use the term
"in-state program" or "in-state plan" and need not
specifically refer to Illinois or its qualified
programs by name) (i) directly to prospective
participants in its offering materials or makes a
public disclosure, such as a website posting; and (ii)
where applicable, to intermediaries selling the
out-of-state program in the same manner that the
out-of-state program distributes its offering
materials;
(D-20.5) For taxable years beginning on or after
January 1, 2018, in the case of a distribution from a
qualified ABLE program under Section 529A of the
Internal Revenue Code, other than a distribution from
a qualified ABLE program created under Section 16.6 of
the State Treasurer Act, an amount equal to the amount
excluded from gross income under Section 529A(c)(1)(B)
of the Internal Revenue Code;
(D-21) For taxable years beginning on or after
January 1, 2007, in the case of transfer of moneys from
a qualified tuition program under Section 529 of the
Internal Revenue Code that is administered by the
State to an out-of-state program, an amount equal to
the amount of moneys previously deducted from base

income under subsection (a)(2)(Y) of this Section;
(D-21.5) For taxable years beginning on or after
January 1, 2018, in the case of the transfer of moneys
from a qualified tuition program under Section 529 or
a qualified ABLE program under Section 529A of the
Internal Revenue Code that is administered by this
State to an ABLE account established under an
out-of-state ABLE account program, an amount equal to
the contribution component of the transferred amount
that was previously deducted from base income under
subsection (a)(2)(Y) or subsection (a)(2)(HH) of this
Section;
(D-22) For taxable years beginning on or after
January 1, 2009, and prior to January 1, 2018, in the
case of a nonqualified withdrawal or refund of moneys
from a qualified tuition program under Section 529 of
the Internal Revenue Code administered by the State
that is not used for qualified expenses at an eligible
education institution, an amount equal to the
contribution component of the nonqualified withdrawal
or refund that was previously deducted from base
income under subsection (a)(2)(y) of this Section,
provided that the withdrawal or refund did not result
from the beneficiary's death or disability. For
taxable years beginning on or after January 1, 2018:
(1) in the case of a nonqualified withdrawal or

refund, as defined under Section 16.5 of the State
Treasurer Act, of moneys from a qualified tuition
program under Section 529 of the Internal Revenue Code
administered by the State, an amount equal to the
contribution component of the nonqualified withdrawal
or refund that was previously deducted from base
income under subsection (a)(2)(Y) of this Section, and
(2) in the case of a nonqualified withdrawal or refund
from a qualified ABLE program under Section 529A of
the Internal Revenue Code administered by the State
that is not used for qualified disability expenses, an
amount equal to the contribution component of the
nonqualified withdrawal or refund that was previously
deducted from base income under subsection (a)(2)(HH)
of this Section;
(D-23) An amount equal to the credit allowable to
the taxpayer under Section 218(a) of this Act,
determined without regard to Section 218(c) of this
Act;
(D-24) For taxable years ending on or after
December 31, 2017, an amount equal to the deduction
allowed under Section 199 of the Internal Revenue Code
for the taxable year;
(D-25) In the case of a resident, an amount equal
to the amount of tax for which a credit is allowed
pursuant to Section 201(p)(7) of this Act;

and by deducting from the total so obtained the sum of the
following amounts:
(E) For taxable years ending before December 31,
2001, any amount included in such total in respect of
any compensation (including but not limited to any
compensation paid or accrued to a serviceman while a
prisoner of war or missing in action) paid to a
resident by reason of being on active duty in the Armed
Forces of the United States and in respect of any
compensation paid or accrued to a resident who as a
governmental employee was a prisoner of war or missing
in action, and in respect of any compensation paid to a
resident in 1971 or thereafter for annual training
performed pursuant to Sections 502 and 503, Title 32,
United States Code as a member of the Illinois
National Guard or, beginning with taxable years ending
on or after December 31, 2007, the National Guard of
any other state. For taxable years ending on or after
December 31, 2001, any amount included in such total
in respect of any compensation (including but not
limited to any compensation paid or accrued to a
serviceman while a prisoner of war or missing in
action) paid to a resident by reason of being a member
of any component of the Armed Forces of the United
States and in respect of any compensation paid or
accrued to a resident who as a governmental employee

was a prisoner of war or missing in action, and in
respect of any compensation paid to a resident in 2001
or thereafter by reason of being a member of the
Illinois National Guard or, beginning with taxable
years ending on or after December 31, 2007, the
National Guard of any other state. The provisions of
this subparagraph (E) are exempt from the provisions
of Section 250;
(F) An amount equal to all amounts included in
such total pursuant to the provisions of Sections
402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
408 of the Internal Revenue Code, or included in such
total as distributions under the provisions of any
retirement or disability plan for employees of any
governmental agency or unit, or retirement payments to
retired partners, which payments are excluded in
computing net earnings from self employment by Section
1402 of the Internal Revenue Code and regulations
adopted pursuant thereto;
(G) The valuation limitation amount;
(H) An amount equal to the amount of any tax
imposed by this Act which was refunded to the taxpayer
and included in such total for the taxable year;
(I) An amount equal to all amounts included in
such total pursuant to the provisions of Section 111
of the Internal Revenue Code as a recovery of items

previously deducted from adjusted gross income in the
computation of taxable income;
(J) An amount equal to those dividends included in
such total which were paid by a corporation which
conducts business operations in a River Edge
Redevelopment Zone or zones created under the River
Edge Redevelopment Zone Act, and conducts
substantially all of its operations in a River Edge
Redevelopment Zone or zones. This subparagraph (J) is
exempt from the provisions of Section 250;
(K) An amount equal to those dividends included in
such total that were paid by a corporation that
conducts business operations in a federally designated
Foreign Trade Zone or Sub-Zone and that is designated
a High Impact Business located in Illinois; provided
that dividends eligible for the deduction provided in
subparagraph (J) of paragraph (2) of this subsection
shall not be eligible for the deduction provided under
this subparagraph (K);
(L) For taxable years ending after December 31,
1983, an amount equal to all social security benefits
and railroad retirement benefits included in such
total pursuant to Sections 72(r) and 86 of the
Internal Revenue Code;
(M) With the exception of any amounts subtracted
under subparagraph (N), an amount equal to the sum of

all amounts disallowed as deductions by (i) Sections
171(a)(2) and 265(a)(2) of the Internal Revenue Code,
and all amounts of expenses allocable to interest and
disallowed as deductions by Section 265(a)(1) of the
Internal Revenue Code; and (ii) for taxable years
ending on or after August 13, 1999, Sections
171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
Internal Revenue Code, plus, for taxable years ending
on or after December 31, 2011, Section 45G(e)(3) of
the Internal Revenue Code and, for taxable years
ending on or after December 31, 2008, any amount
included in gross income under Section 87 of the
Internal Revenue Code; the provisions of this
subparagraph are exempt from the provisions of Section
250;
(N) An amount equal to all amounts included in
such total which are exempt from taxation by this
State either by reason of its statutes or Constitution
or by reason of the Constitution, treaties or statutes
of the United States; provided that, in the case of any
statute of this State that exempts income derived from
bonds or other obligations from the tax imposed under
this Act, the amount exempted shall be the interest
net of bond premium amortization;
(O) An amount equal to any contribution made to a
job training project established pursuant to the Tax

Increment Allocation Redevelopment Act;
(P) An amount equal to the amount of the deduction
used to compute the federal income tax credit for
restoration of substantial amounts held under claim of
right for the taxable year pursuant to Section 1341 of
the Internal Revenue Code or of any itemized deduction
taken from adjusted gross income in the computation of
taxable income for restoration of substantial amounts
held under claim of right for the taxable year;
(Q) An amount equal to any amounts included in
such total, received by the taxpayer as an
acceleration in the payment of life, endowment or
annuity benefits in advance of the time they would
otherwise be payable as an indemnity for a terminal
illness;
(R) An amount equal to the amount of any federal or
State bonus paid to veterans of the Persian Gulf War;
(S) An amount, to the extent included in adjusted
gross income, equal to the amount of a contribution
made in the taxable year on behalf of the taxpayer to a
medical care savings account established under the
Medical Care Savings Account Act or the Medical Care
Savings Account Act of 2000 to the extent the
contribution is accepted by the account administrator
as provided in that Act;
(T) An amount, to the extent included in adjusted

gross income, equal to the amount of interest earned
in the taxable year on a medical care savings account
established under the Medical Care Savings Account Act
or the Medical Care Savings Account Act of 2000 on
behalf of the taxpayer, other than interest added
pursuant to item (D-5) of this paragraph (2);
(U) For one taxable year beginning on or after
January 1, 1994, an amount equal to the total amount of
tax imposed and paid under subsections (a) and (b) of
Section 201 of this Act on grant amounts received by
the taxpayer under the Nursing Home Grant Assistance
Act during the taxpayer's taxable years 1992 and 1993;
(V) Beginning with tax years ending on or after
December 31, 1995 and ending with tax years ending on
or before December 31, 2004, an amount equal to the
amount paid by a taxpayer who is a self-employed
taxpayer, a partner of a partnership, or a shareholder
in a Subchapter S corporation for health insurance or
long-term care insurance for that taxpayer or that
taxpayer's spouse or dependents, to the extent that
the amount paid for that health insurance or long-term
care insurance may be deducted under Section 213 of
the Internal Revenue Code, has not been deducted on
the federal income tax return of the taxpayer, and
does not exceed the taxable income attributable to
that taxpayer's income, self-employment income, or

Subchapter S corporation income; except that no
deduction shall be allowed under this item (V) if the
taxpayer is eligible to participate in any health
insurance or long-term care insurance plan of an
employer of the taxpayer or the taxpayer's spouse. The
amount of the health insurance and long-term care
insurance subtracted under this item (V) shall be
determined by multiplying total health insurance and
long-term care insurance premiums paid by the taxpayer
times a number that represents the fractional
percentage of eligible medical expenses under Section
213 of the Internal Revenue Code of 1986 not actually
deducted on the taxpayer's federal income tax return;
(W) For taxable years beginning on or after
January 1, 1998, all amounts included in the
taxpayer's federal gross income in the taxable year
from amounts converted from a regular IRA to a Roth
IRA. This paragraph is exempt from the provisions of
Section 250;
(X) For taxable year 1999 and thereafter, an
amount equal to the amount of any (i) distributions,
to the extent includible in gross income for federal
income tax purposes, made to the taxpayer because of
his or her status as a victim of persecution for racial
or religious reasons by Nazi Germany or any other Axis
regime or as an heir of the victim and (ii) items of

income, to the extent includible in gross income for
federal income tax purposes, attributable to, derived
from or in any way related to assets stolen from,
hidden from, or otherwise lost to a victim of
persecution for racial or religious reasons by Nazi
Germany or any other Axis regime immediately prior to,
during, and immediately after World War II, including,
but not limited to, interest on the proceeds
receivable as insurance under policies issued to a
victim of persecution for racial or religious reasons
by Nazi Germany or any other Axis regime by European
insurance companies immediately prior to and during
World War II; provided, however, this subtraction from
federal adjusted gross income does not apply to assets
acquired with such assets or with the proceeds from
the sale of such assets; provided, further, this
paragraph shall only apply to a taxpayer who was the
first recipient of such assets after their recovery
and who is a victim of persecution for racial or
religious reasons by Nazi Germany or any other Axis
regime or as an heir of the victim. The amount of and
the eligibility for any public assistance, benefit, or
similar entitlement is not affected by the inclusion
of items (i) and (ii) of this paragraph in gross income
for federal income tax purposes. This paragraph is
exempt from the provisions of Section 250;

(Y) For taxable years beginning on or after
January 1, 2002 and ending on or before December 31,
2004, moneys contributed in the taxable year to a
College Savings Pool account under Section 16.5 of the
State Treasurer Act, except that amounts excluded from
gross income under Section 529(c)(3)(C)(i) of the
Internal Revenue Code shall not be considered moneys
contributed under this subparagraph (Y). For taxable
years beginning on or after January 1, 2005, a maximum
of $10,000 contributed in the taxable year to (i) a
College Savings Pool account under Section 16.5 of the
State Treasurer Act or (ii) the Illinois Prepaid
Tuition Trust Fund, except that amounts excluded from
gross income under Section 529(c)(3)(C)(i) of the
Internal Revenue Code shall not be considered moneys
contributed under this subparagraph (Y). For purposes
of this subparagraph, contributions made by an
employer on behalf of an employee, or matching
contributions made by an employee, shall be treated as
made by the employee. This subparagraph (Y) is exempt
from the provisions of Section 250;
(Z) For taxable years 2001 and thereafter, for the
taxable year in which the bonus depreciation deduction
is taken on the taxpayer's federal income tax return
under subsection (k) of Section 168 of the Internal
Revenue Code and for each applicable taxable year

thereafter, an amount equal to "x", where:
(1) "y" equals the amount of the depreciation
deduction taken for the taxable year on the
taxpayer's federal income tax return on property
for which the bonus depreciation deduction was
taken in any year under subsection (k) of Section
168 of the Internal Revenue Code, but not
including the bonus depreciation deduction;
(2) for taxable years ending on or before
December 31, 2005, "x" equals "y" multiplied by 30
and then divided by 70 (or "y" multiplied by
0.429); and
(3) for taxable years ending after December
31, 2005:
(i) for property on which a bonus
depreciation deduction of 30% of the adjusted
basis was taken, "x" equals "y" multiplied by
30 and then divided by 70 (or "y" multiplied
by 0.429);
(ii) for property on which a bonus
depreciation deduction of 50% of the adjusted
basis was taken, "x" equals "y" multiplied by
1.0;
(iii) for property on which a bonus
depreciation deduction of 100% of the adjusted
basis was taken in a taxable year ending on or

after December 31, 2021, "x" equals the
depreciation deduction that would be allowed
on that property if the taxpayer had made the
election under Section 168(k)(7) of the
Internal Revenue Code to not claim bonus
depreciation on that property; and
(iv) for property on which a bonus
depreciation deduction of a percentage other
than 30%, 50% or 100% of the adjusted basis
was taken in a taxable year ending on or after
December 31, 2021, "x" equals "y" multiplied
by 100 times the percentage bonus depreciation
on the property (that is, 100(bonus%)) and
then divided by 100 times 1 minus the
percentage bonus depreciation on the property
(that is, 100(1-bonus%)).
The aggregate amount deducted under this
subparagraph in all taxable years for any one piece of
property may not exceed the amount of the bonus
depreciation deduction taken on that property on the
taxpayer's federal income tax return under subsection
(k) of Section 168 of the Internal Revenue Code. This
subparagraph (Z) is exempt from the provisions of
Section 250;
(AA) If the taxpayer sells, transfers, abandons,
or otherwise disposes of property for which the

taxpayer was required in any taxable year to make an
addition modification under subparagraph (D-15), then
an amount equal to that addition modification.
If the taxpayer continues to own property through
the last day of the last tax year for which a
subtraction is allowed with respect to that property
under subparagraph (Z) and for which the taxpayer was
required in any taxable year to make an addition
modification under subparagraph (D-15), then an amount
equal to that addition modification.
The taxpayer is allowed to take the deduction
under this subparagraph only once with respect to any
one piece of property.
This subparagraph (AA) is exempt from the
provisions of Section 250;
(BB) Any amount included in adjusted gross income,
other than salary, received by a driver in a
ridesharing arrangement using a motor vehicle;
(CC) The amount of (i) any interest income (net of
the deductions allocable thereto) taken into account
for the taxable year with respect to a transaction
with a taxpayer that is required to make an addition
modification with respect to such transaction under
Section 203(a)(2)(D-17), 203(b)(2)(E-12),
203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
the amount of that addition modification, and (ii) any

income from intangible property (net of the deductions
allocable thereto) taken into account for the taxable
year with respect to a transaction with a taxpayer
that is required to make an addition modification with
respect to such transaction under Section
203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
203(d)(2)(D-8), but not to exceed the amount of that
addition modification. This subparagraph (CC) is
exempt from the provisions of Section 250;
(DD) An amount equal to the interest income taken
into account for the taxable year (net of the
deductions allocable thereto) with respect to
transactions with (i) a foreign person who would be a
member of the taxpayer's unitary business group but
for the fact that the foreign person's business
activity outside the United States is 80% or more of
that person's total business activity and (ii) for
taxable years ending on or after December 31, 2008, to
a person who would be a member of the same unitary
business group but for the fact that the person is
prohibited under Section 1501(a)(27) from being
included in the unitary business group because he or
she is ordinarily required to apportion business
income under different subsections of Section 304, but
not to exceed the addition modification required to be
made for the same taxable year under Section

203(a)(2)(D-17) for interest paid, accrued, or
incurred, directly or indirectly, to the same person.
This subparagraph (DD) is exempt from the provisions
of Section 250;
(EE) An amount equal to the income from intangible
property taken into account for the taxable year (net
of the deductions allocable thereto) with respect to
transactions with (i) a foreign person who would be a
member of the taxpayer's unitary business group but
for the fact that the foreign person's business
activity outside the United States is 80% or more of
that person's total business activity and (ii) for
taxable years ending on or after December 31, 2008, to
a person who would be a member of the same unitary
business group but for the fact that the person is
prohibited under Section 1501(a)(27) from being
included in the unitary business group because he or
she is ordinarily required to apportion business
income under different subsections of Section 304, but
not to exceed the addition modification required to be
made for the same taxable year under Section
203(a)(2)(D-18) for intangible expenses and costs
paid, accrued, or incurred, directly or indirectly, to
the same foreign person. This subparagraph (EE) is
exempt from the provisions of Section 250;
(FF) An amount equal to any amount awarded to the

taxpayer during the taxable year by the Court of
Claims under subsection (c) of Section 8 of the Court
of Claims Act for time unjustly served in a State
prison. This subparagraph (FF) is exempt from the
provisions of Section 250;
(GG) For taxable years ending on or after December
31, 2011, in the case of a taxpayer who was required to
add back any insurance premiums under Section
203(a)(2)(D-19), such taxpayer may elect to subtract
that part of a reimbursement received from the
insurance company equal to the amount of the expense
or loss (including expenses incurred by the insurance
company) that would have been taken into account as a
deduction for federal income tax purposes if the
expense or loss had been uninsured. If a taxpayer
makes the election provided for by this subparagraph
(GG), the insurer to which the premiums were paid must
add back to income the amount subtracted by the
taxpayer pursuant to this subparagraph (GG). This
subparagraph (GG) is exempt from the provisions of
Section 250;
(HH) For taxable years beginning on or after
January 1, 2018 and prior to January 1, 2028, a maximum
of $10,000 contributed in the taxable year to a
qualified ABLE account under Section 16.6 of the State
Treasurer Act, except that amounts excluded from gross

income under Section 529(c)(3)(C)(i) or Section
529A(c)(1)(C) of the Internal Revenue Code shall not
be considered moneys contributed under this
subparagraph (HH). For purposes of this subparagraph
(HH), contributions made by an employer on behalf of
an employee, or matching contributions made by an
employee, shall be treated as made by the employee;
(II) For taxable years that begin on or after
January 1, 2021 and begin before January 1, 2026, the
amount that is included in the taxpayer's federal
adjusted gross income pursuant to Section 61 of the
Internal Revenue Code as discharge of indebtedness
attributable to student loan forgiveness and that is
not excluded from the taxpayer's federal adjusted
gross income pursuant to paragraph (5) of subsection
(f) of Section 108 of the Internal Revenue Code; and
(JJ) For taxable years beginning on or after
January 1, 2023, for any cannabis establishment
operating in this State and licensed under the
Cannabis Regulation and Tax Act or any cannabis
cultivation center or medical cannabis dispensing
organization operating in this State and licensed
under the Compassionate Use of Medical Cannabis
Program Act, an amount equal to the deductions that
were disallowed under Section 280E of the Internal
Revenue Code for the taxable year and that would not be

added back under this subsection. The provisions of
this subparagraph (JJ) are exempt from the provisions
of Section 250; and .
(KK) (JJ) To the extent includible in gross income
for federal income tax purposes, any amount awarded or
paid to the taxpayer as a result of a judgment or
settlement for fertility fraud as provided in Section
15 of the Illinois Fertility Fraud Act, donor
fertility fraud as provided in Section 20 of the
Illinois Fertility Fraud Act, or similar action in
another state.
(b) Corporations.
(1) In general. In the case of a corporation, base
income means an amount equal to the taxpayer's taxable
income for the taxable year as modified by paragraph (2).
(2) Modifications. The taxable income referred to in
paragraph (1) shall be modified by adding thereto the sum
of the following amounts:
(A) An amount equal to all amounts paid or accrued
to the taxpayer as interest and all distributions
received from regulated investment companies during
the taxable year to the extent excluded from gross
income in the computation of taxable income;
(B) An amount equal to the amount of tax imposed by
this Act to the extent deducted from gross income in

the computation of taxable income for the taxable
year;
(C) In the case of a regulated investment company,
an amount equal to the excess of (i) the net long-term
capital gain for the taxable year, over (ii) the
amount of the capital gain dividends designated as
such in accordance with Section 852(b)(3)(C) of the
Internal Revenue Code and any amount designated under
Section 852(b)(3)(D) of the Internal Revenue Code,
attributable to the taxable year (this amendatory Act
of 1995 (Public Act 89-89) is declarative of existing
law and is not a new enactment);
(D) The amount of any net operating loss deduction
taken in arriving at taxable income, other than a net
operating loss carried forward from a taxable year
ending prior to December 31, 1986;
(E) For taxable years in which a net operating
loss carryback or carryforward from a taxable year
ending prior to December 31, 1986 is an element of
taxable income under paragraph (1) of subsection (e)
or subparagraph (E) of paragraph (2) of subsection
(e), the amount by which addition modifications other
than those provided by this subparagraph (E) exceeded
subtraction modifications in such earlier taxable
year, with the following limitations applied in the
order that they are listed:

(i) the addition modification relating to the
net operating loss carried back or forward to the
taxable year from any taxable year ending prior to
December 31, 1986 shall be reduced by the amount
of addition modification under this subparagraph
(E) which related to that net operating loss and
which was taken into account in calculating the
base income of an earlier taxable year, and
(ii) the addition modification relating to the
net operating loss carried back or forward to the
taxable year from any taxable year ending prior to
December 31, 1986 shall not exceed the amount of
such carryback or carryforward;
For taxable years in which there is a net
operating loss carryback or carryforward from more
than one other taxable year ending prior to December
31, 1986, the addition modification provided in this
subparagraph (E) shall be the sum of the amounts
computed independently under the preceding provisions
of this subparagraph (E) for each such taxable year;
(E-5) For taxable years ending after December 31,
1997, an amount equal to any eligible remediation
costs that the corporation deducted in computing
adjusted gross income and for which the corporation
claims a credit under subsection (l) of Section 201;
(E-10) For taxable years 2001 and thereafter, an

amount equal to the bonus depreciation deduction taken
on the taxpayer's federal income tax return for the
taxable year under subsection (k) of Section 168 of
the Internal Revenue Code;
(E-11) If the taxpayer sells, transfers, abandons,
or otherwise disposes of property for which the
taxpayer was required in any taxable year to make an
addition modification under subparagraph (E-10), then
an amount equal to the aggregate amount of the
deductions taken in all taxable years under
subparagraph (T) with respect to that property.
If the taxpayer continues to own property through
the last day of the last tax year for which a
subtraction is allowed with respect to that property
under subparagraph (T) and for which the taxpayer was
allowed in any taxable year to make a subtraction
modification under subparagraph (T), then an amount
equal to that subtraction modification.
The taxpayer is required to make the addition
modification under this subparagraph only once with
respect to any one piece of property;
(E-12) An amount equal to the amount otherwise
allowed as a deduction in computing base income for
interest paid, accrued, or incurred, directly or
indirectly, (i) for taxable years ending on or after
December 31, 2004, to a foreign person who would be a

member of the same unitary business group but for the
fact the foreign person's business activity outside
the United States is 80% or more of the foreign
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business
group but for the fact that the person is prohibited
under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily
required to apportion business income under different
subsections of Section 304. The addition modification
required by this subparagraph shall be reduced to the
extent that dividends were included in base income of
the unitary group for the same taxable year and
received by the taxpayer or by a member of the
taxpayer's unitary business group (including amounts
included in gross income pursuant to Sections 951
through 964 of the Internal Revenue Code and amounts
included in gross income under Section 78 of the
Internal Revenue Code) with respect to the stock of
the same person to whom the interest was paid,
accrued, or incurred.
This paragraph shall not apply to the following:
(i) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person who
is subject in a foreign country or state, other

than a state which requires mandatory unitary
reporting, to a tax on or measured by net income
with respect to such interest; or
(ii) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer can establish, based on a
preponderance of the evidence, both of the
following:
(a) the person, during the same taxable
year, paid, accrued, or incurred, the interest
to a person that is not a related member, and
(b) the transaction giving rise to the
interest expense between the taxpayer and the
person did not have as a principal purpose the
avoidance of Illinois income tax, and is paid
pursuant to a contract or agreement that
reflects an arm's-length interest rate and
terms; or
(iii) the taxpayer can establish, based on
clear and convincing evidence, that the interest
paid, accrued, or incurred relates to a contract
or agreement entered into at arm's-length rates
and terms and the principal purpose for the
payment is not federal or Illinois tax avoidance;
or
(iv) an item of interest paid, accrued, or

incurred, directly or indirectly, to a person if
the taxpayer establishes by clear and convincing
evidence that the adjustments are unreasonable; or
if the taxpayer and the Director agree in writing
to the application or use of an alternative method
of apportionment under Section 304(f).
Nothing in this subsection shall preclude the
Director from making any other adjustment
otherwise allowed under Section 404 of this Act
for any tax year beginning after the effective
date of this amendment provided such adjustment is
made pursuant to regulation adopted by the
Department and such regulations provide methods
and standards by which the Department will utilize
its authority under Section 404 of this Act;
(E-13) An amount equal to the amount of intangible
expenses and costs otherwise allowed as a deduction in
computing base income, and that were paid, accrued, or
incurred, directly or indirectly, (i) for taxable
years ending on or after December 31, 2004, to a
foreign person who would be a member of the same
unitary business group but for the fact that the
foreign person's business activity outside the United
States is 80% or more of that person's total business
activity and (ii) for taxable years ending on or after
December 31, 2008, to a person who would be a member of

the same unitary business group but for the fact that
the person is prohibited under Section 1501(a)(27)
from being included in the unitary business group
because he or she is ordinarily required to apportion
business income under different subsections of Section
304. The addition modification required by this
subparagraph shall be reduced to the extent that
dividends were included in base income of the unitary
group for the same taxable year and received by the
taxpayer or by a member of the taxpayer's unitary
business group (including amounts included in gross
income pursuant to Sections 951 through 964 of the
Internal Revenue Code and amounts included in gross
income under Section 78 of the Internal Revenue Code)
with respect to the stock of the same person to whom
the intangible expenses and costs were directly or
indirectly paid, incurred, or accrued. The preceding
sentence shall not apply to the extent that the same
dividends caused a reduction to the addition
modification required under Section 203(b)(2)(E-12) of
this Act. As used in this subparagraph, the term
"intangible expenses and costs" includes (1) expenses,
losses, and costs for, or related to, the direct or
indirect acquisition, use, maintenance or management,
ownership, sale, exchange, or any other disposition of
intangible property; (2) losses incurred, directly or

indirectly, from factoring transactions or discounting
transactions; (3) royalty, patent, technical, and
copyright fees; (4) licensing fees; and (5) other
similar expenses and costs. For purposes of this
subparagraph, "intangible property" includes patents,
patent applications, trade names, trademarks, service
marks, copyrights, mask works, trade secrets, and
similar types of intangible assets.
This paragraph shall not apply to the following:
(i) any item of intangible expenses or costs
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person who
is subject in a foreign country or state, other
than a state which requires mandatory unitary
reporting, to a tax on or measured by net income
with respect to such item; or
(ii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, if the taxpayer can establish, based
on a preponderance of the evidence, both of the
following:
(a) the person during the same taxable
year paid, accrued, or incurred, the
intangible expense or cost to a person that is
not a related member, and
(b) the transaction giving rise to the

intangible expense or cost between the
taxpayer and the person did not have as a
principal purpose the avoidance of Illinois
income tax, and is paid pursuant to a contract
or agreement that reflects arm's-length terms;
or
(iii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person if
the taxpayer establishes by clear and convincing
evidence, that the adjustments are unreasonable;
or if the taxpayer and the Director agree in
writing to the application or use of an
alternative method of apportionment under Section
304(f);
Nothing in this subsection shall preclude the
Director from making any other adjustment
otherwise allowed under Section 404 of this Act
for any tax year beginning after the effective
date of this amendment provided such adjustment is
made pursuant to regulation adopted by the
Department and such regulations provide methods
and standards by which the Department will utilize
its authority under Section 404 of this Act;
(E-14) For taxable years ending on or after
December 31, 2008, an amount equal to the amount of

insurance premium expenses and costs otherwise allowed
as a deduction in computing base income, and that were
paid, accrued, or incurred, directly or indirectly, to
a person who would be a member of the same unitary
business group but for the fact that the person is
prohibited under Section 1501(a)(27) from being
included in the unitary business group because he or
she is ordinarily required to apportion business
income under different subsections of Section 304. The
addition modification required by this subparagraph
shall be reduced to the extent that dividends were
included in base income of the unitary group for the
same taxable year and received by the taxpayer or by a
member of the taxpayer's unitary business group
(including amounts included in gross income under
Sections 951 through 964 of the Internal Revenue Code
and amounts included in gross income under Section 78
of the Internal Revenue Code) with respect to the
stock of the same person to whom the premiums and costs
were directly or indirectly paid, incurred, or
accrued. The preceding sentence does not apply to the
extent that the same dividends caused a reduction to
the addition modification required under Section
203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this
Act;
(E-15) For taxable years beginning after December

31, 2008, any deduction for dividends paid by a
captive real estate investment trust that is allowed
to a real estate investment trust under Section
857(b)(2)(B) of the Internal Revenue Code for
dividends paid;
(E-16) An amount equal to the credit allowable to
the taxpayer under Section 218(a) of this Act,
determined without regard to Section 218(c) of this
Act;
(E-17) For taxable years ending on or after
December 31, 2017, an amount equal to the deduction
allowed under Section 199 of the Internal Revenue Code
for the taxable year;
(E-18) for taxable years beginning after December
31, 2018, an amount equal to the deduction allowed
under Section 250(a)(1)(A) of the Internal Revenue
Code for the taxable year;
(E-19) for taxable years ending on or after June
30, 2021, an amount equal to the deduction allowed
under Section 250(a)(1)(B)(i) of the Internal Revenue
Code for the taxable year;
(E-20) for taxable years ending on or after June
30, 2021, an amount equal to the deduction allowed
under Sections 243(e) and 245A(a) of the Internal
Revenue Code for the taxable year; .
(E-21) the amount that is claimed as a federal

deduction when computing the taxpayer's federal
taxable income for the taxable year and that is
attributable to an endowment gift for which the
taxpayer receives a credit under the Illinois Gives
Tax Credit Act;
and by deducting from the total so obtained the sum of the
following amounts:
(F) An amount equal to the amount of any tax
imposed by this Act which was refunded to the taxpayer
and included in such total for the taxable year;
(G) An amount equal to any amount included in such
total under Section 78 of the Internal Revenue Code;
(H) In the case of a regulated investment company,
an amount equal to the amount of exempt interest
dividends as defined in subsection (b)(5) of Section
852 of the Internal Revenue Code, paid to shareholders
for the taxable year;
(I) With the exception of any amounts subtracted
under subparagraph (J), an amount equal to the sum of
all amounts disallowed as deductions by (i) Sections
171(a)(2) and 265(a)(2) and amounts disallowed as
interest expense by Section 291(a)(3) of the Internal
Revenue Code, and all amounts of expenses allocable to
interest and disallowed as deductions by Section
265(a)(1) of the Internal Revenue Code; and (ii) for
taxable years ending on or after August 13, 1999,

Sections 171(a)(2), 265, 280C, 291(a)(3), and
832(b)(5)(B)(i) of the Internal Revenue Code, plus,
for tax years ending on or after December 31, 2011,
amounts disallowed as deductions by Section 45G(e)(3)
of the Internal Revenue Code and, for taxable years
ending on or after December 31, 2008, any amount
included in gross income under Section 87 of the
Internal Revenue Code and the policyholders' share of
tax-exempt interest of a life insurance company under
Section 807(a)(2)(B) of the Internal Revenue Code (in
the case of a life insurance company with gross income
from a decrease in reserves for the tax year) or
Section 807(b)(1)(B) of the Internal Revenue Code (in
the case of a life insurance company allowed a
deduction for an increase in reserves for the tax
year); the provisions of this subparagraph are exempt
from the provisions of Section 250;
(J) An amount equal to all amounts included in
such total which are exempt from taxation by this
State either by reason of its statutes or Constitution
or by reason of the Constitution, treaties or statutes
of the United States; provided that, in the case of any
statute of this State that exempts income derived from
bonds or other obligations from the tax imposed under
this Act, the amount exempted shall be the interest
net of bond premium amortization;

(K) An amount equal to those dividends included in
such total which were paid by a corporation which
conducts business operations in a River Edge
Redevelopment Zone or zones created under the River
Edge Redevelopment Zone Act and conducts substantially
all of its operations in a River Edge Redevelopment
Zone or zones. This subparagraph (K) is exempt from
the provisions of Section 250;
(L) An amount equal to those dividends included in
such total that were paid by a corporation that
conducts business operations in a federally designated
Foreign Trade Zone or Sub-Zone and that is designated
a High Impact Business located in Illinois; provided
that dividends eligible for the deduction provided in
subparagraph (K) of paragraph 2 of this subsection
shall not be eligible for the deduction provided under
this subparagraph (L);
(M) For any taxpayer that is a financial
organization within the meaning of Section 304(c) of
this Act, an amount included in such total as interest
income from a loan or loans made by such taxpayer to a
borrower, to the extent that such a loan is secured by
property which is eligible for the River Edge
Redevelopment Zone Investment Credit. To determine the
portion of a loan or loans that is secured by property
eligible for a Section 201(f) investment credit to the

borrower, the entire principal amount of the loan or
loans between the taxpayer and the borrower should be
divided into the basis of the Section 201(f)
investment credit property which secures the loan or
loans, using for this purpose the original basis of
such property on the date that it was placed in service
in the River Edge Redevelopment Zone. The subtraction
modification available to the taxpayer in any year
under this subsection shall be that portion of the
total interest paid by the borrower with respect to
such loan attributable to the eligible property as
calculated under the previous sentence. This
subparagraph (M) is exempt from the provisions of
Section 250;
(M-1) For any taxpayer that is a financial
organization within the meaning of Section 304(c) of
this Act, an amount included in such total as interest
income from a loan or loans made by such taxpayer to a
borrower, to the extent that such a loan is secured by
property which is eligible for the High Impact
Business Investment Credit. To determine the portion
of a loan or loans that is secured by property eligible
for a Section 201(h) investment credit to the
borrower, the entire principal amount of the loan or
loans between the taxpayer and the borrower should be
divided into the basis of the Section 201(h)

investment credit property which secures the loan or
loans, using for this purpose the original basis of
such property on the date that it was placed in service
in a federally designated Foreign Trade Zone or
Sub-Zone located in Illinois. No taxpayer that is
eligible for the deduction provided in subparagraph
(M) of paragraph (2) of this subsection shall be
eligible for the deduction provided under this
subparagraph (M-1). The subtraction modification
available to taxpayers in any year under this
subsection shall be that portion of the total interest
paid by the borrower with respect to such loan
attributable to the eligible property as calculated
under the previous sentence;
(N) Two times any contribution made during the
taxable year to a designated zone organization to the
extent that the contribution (i) qualifies as a
charitable contribution under subsection (c) of
Section 170 of the Internal Revenue Code and (ii)
must, by its terms, be used for a project approved by
the Department of Commerce and Economic Opportunity
under Section 11 of the Illinois Enterprise Zone Act
or under Section 10-10 of the River Edge Redevelopment
Zone Act. This subparagraph (N) is exempt from the
provisions of Section 250;
(O) An amount equal to: (i) 85% for taxable years

ending on or before December 31, 1992, or, a
percentage equal to the percentage allowable under
Section 243(a)(1) of the Internal Revenue Code of 1986
for taxable years ending after December 31, 1992, of
the amount by which dividends included in taxable
income and received from a corporation that is not
created or organized under the laws of the United
States or any state or political subdivision thereof,
including, for taxable years ending on or after
December 31, 1988, dividends received or deemed
received or paid or deemed paid under Sections 951
through 965 of the Internal Revenue Code, exceed the
amount of the modification provided under subparagraph
(G) of paragraph (2) of this subsection (b) which is
related to such dividends, and including, for taxable
years ending on or after December 31, 2008, dividends
received from a captive real estate investment trust;
plus (ii) 100% of the amount by which dividends,
included in taxable income and received, including,
for taxable years ending on or after December 31,
1988, dividends received or deemed received or paid or
deemed paid under Sections 951 through 964 of the
Internal Revenue Code and including, for taxable years
ending on or after December 31, 2008, dividends
received from a captive real estate investment trust,
from any such corporation specified in clause (i) that

would but for the provisions of Section 1504(b)(3) of
the Internal Revenue Code be treated as a member of the
affiliated group which includes the dividend
recipient, exceed the amount of the modification
provided under subparagraph (G) of paragraph (2) of
this subsection (b) which is related to such
dividends. For taxable years ending on or after June
30, 2021, (i) for purposes of this subparagraph, the
term "dividend" does not include any amount treated as
a dividend under Section 1248 of the Internal Revenue
Code, and (ii) this subparagraph shall not apply to
dividends for which a deduction is allowed under
Section 245(a) of the Internal Revenue Code. This
subparagraph (O) is exempt from the provisions of
Section 250 of this Act;
(P) An amount equal to any contribution made to a
job training project established pursuant to the Tax
Increment Allocation Redevelopment Act;
(Q) An amount equal to the amount of the deduction
used to compute the federal income tax credit for
restoration of substantial amounts held under claim of
right for the taxable year pursuant to Section 1341 of
the Internal Revenue Code;
(R) On and after July 20, 1999, in the case of an
attorney-in-fact with respect to whom an interinsurer
or a reciprocal insurer has made the election under

Section 835 of the Internal Revenue Code, 26 U.S.C.
835, an amount equal to the excess, if any, of the
amounts paid or incurred by that interinsurer or
reciprocal insurer in the taxable year to the
attorney-in-fact over the deduction allowed to that
interinsurer or reciprocal insurer with respect to the
attorney-in-fact under Section 835(b) of the Internal
Revenue Code for the taxable year; the provisions of
this subparagraph are exempt from the provisions of
Section 250;
(S) For taxable years ending on or after December
31, 1997, in the case of a Subchapter S corporation, an
amount equal to all amounts of income allocable to a
shareholder subject to the Personal Property Tax
Replacement Income Tax imposed by subsections (c) and
(d) of Section 201 of this Act, including amounts
allocable to organizations exempt from federal income
tax by reason of Section 501(a) of the Internal
Revenue Code. This subparagraph (S) is exempt from the
provisions of Section 250;
(T) For taxable years 2001 and thereafter, for the
taxable year in which the bonus depreciation deduction
is taken on the taxpayer's federal income tax return
under subsection (k) of Section 168 of the Internal
Revenue Code and for each applicable taxable year
thereafter, an amount equal to "x", where:

(1) "y" equals the amount of the depreciation
deduction taken for the taxable year on the
taxpayer's federal income tax return on property
for which the bonus depreciation deduction was
taken in any year under subsection (k) of Section
168 of the Internal Revenue Code, but not
including the bonus depreciation deduction;
(2) for taxable years ending on or before
December 31, 2005, "x" equals "y" multiplied by 30
and then divided by 70 (or "y" multiplied by
0.429); and
(3) for taxable years ending after December
31, 2005:
(i) for property on which a bonus
depreciation deduction of 30% of the adjusted
basis was taken, "x" equals "y" multiplied by
30 and then divided by 70 (or "y" multiplied
by 0.429);
(ii) for property on which a bonus
depreciation deduction of 50% of the adjusted
basis was taken, "x" equals "y" multiplied by
1.0;
(iii) for property on which a bonus
depreciation deduction of 100% of the adjusted
basis was taken in a taxable year ending on or
after December 31, 2021, "x" equals the

depreciation deduction that would be allowed
on that property if the taxpayer had made the
election under Section 168(k)(7) of the
Internal Revenue Code to not claim bonus
depreciation on that property; and
(iv) for property on which a bonus
depreciation deduction of a percentage other
than 30%, 50% or 100% of the adjusted basis
was taken in a taxable year ending on or after
December 31, 2021, "x" equals "y" multiplied
by 100 times the percentage bonus depreciation
on the property (that is, 100(bonus%)) and
then divided by 100 times 1 minus the
percentage bonus depreciation on the property
(that is, 100(1-bonus%)).
The aggregate amount deducted under this
subparagraph in all taxable years for any one piece of
property may not exceed the amount of the bonus
depreciation deduction taken on that property on the
taxpayer's federal income tax return under subsection
(k) of Section 168 of the Internal Revenue Code. This
subparagraph (T) is exempt from the provisions of
Section 250;
(U) If the taxpayer sells, transfers, abandons, or
otherwise disposes of property for which the taxpayer
was required in any taxable year to make an addition

modification under subparagraph (E-10), then an amount
equal to that addition modification.
If the taxpayer continues to own property through
the last day of the last tax year for which a
subtraction is allowed with respect to that property
under subparagraph (T) and for which the taxpayer was
required in any taxable year to make an addition
modification under subparagraph (E-10), then an amount
equal to that addition modification.
The taxpayer is allowed to take the deduction
under this subparagraph only once with respect to any
one piece of property.
This subparagraph (U) is exempt from the
provisions of Section 250;
(V) The amount of: (i) any interest income (net of
the deductions allocable thereto) taken into account
for the taxable year with respect to a transaction
with a taxpayer that is required to make an addition
modification with respect to such transaction under
Section 203(a)(2)(D-17), 203(b)(2)(E-12),
203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
the amount of such addition modification, (ii) any
income from intangible property (net of the deductions
allocable thereto) taken into account for the taxable
year with respect to a transaction with a taxpayer
that is required to make an addition modification with

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

she is ordinarily required to apportion business
income under different subsections of Section 304, but
not to exceed the addition modification required to be
made for the same taxable year under Section
203(b)(2)(E-12) for interest paid, accrued, or
incurred, directly or indirectly, to the same person.
This subparagraph (W) is exempt from the provisions of
Section 250;
(X) An amount equal to the income from intangible
property taken into account for the taxable year (net
of the deductions allocable thereto) with respect to
transactions with (i) a foreign person who would be a
member of the taxpayer's unitary business group but
for the fact that the foreign person's business
activity outside the United States is 80% or more of
that person's total business activity and (ii) for
taxable years ending on or after December 31, 2008, to
a person who would be a member of the same unitary
business group but for the fact that the person is
prohibited under Section 1501(a)(27) from being
included in the unitary business group because he or
she is ordinarily required to apportion business
income under different subsections of Section 304, but
not to exceed the addition modification required to be
made for the same taxable year under Section
203(b)(2)(E-13) for intangible expenses and costs

paid, accrued, or incurred, directly or indirectly, to
the same foreign person. This subparagraph (X) is
exempt from the provisions of Section 250;
(Y) For taxable years ending on or after December
31, 2011, in the case of a taxpayer who was required to
add back any insurance premiums under Section
203(b)(2)(E-14), such taxpayer may elect to subtract
that part of a reimbursement received from the
insurance company equal to the amount of the expense
or loss (including expenses incurred by the insurance
company) that would have been taken into account as a
deduction for federal income tax purposes if the
expense or loss had been uninsured. If a taxpayer
makes the election provided for by this subparagraph
(Y), the insurer to which the premiums were paid must
add back to income the amount subtracted by the
taxpayer pursuant to this subparagraph (Y). This
subparagraph (Y) is exempt from the provisions of
Section 250;
(Z) The difference between the nondeductible
controlled foreign corporation dividends under Section
965(e)(3) of the Internal Revenue Code over the
taxable income of the taxpayer, computed without
regard to Section 965(e)(2)(A) of the Internal Revenue
Code, and without regard to any net operating loss
deduction. This subparagraph (Z) is exempt from the

provisions of Section 250; and
(AA) For taxable years beginning on or after
January 1, 2023, for any cannabis establishment
operating in this State and licensed under the
Cannabis Regulation and Tax Act or any cannabis
cultivation center or medical cannabis dispensing
organization operating in this State and licensed
under the Compassionate Use of Medical Cannabis
Program Act, an amount equal to the deductions that
were disallowed under Section 280E of the Internal
Revenue Code for the taxable year and that would not be
added back under this subsection. The provisions of
this subparagraph (AA) are exempt from the provisions
of Section 250.
(3) Special rule. For purposes of paragraph (2)(A),
"gross income" in the case of a life insurance company,
for tax years ending on and after December 31, 1994, and
prior to December 31, 2011, shall mean the gross
investment income for the taxable year and, for tax years
ending on or after December 31, 2011, shall mean all
amounts included in life insurance gross income under
Section 803(a)(3) of the Internal Revenue Code.
(c) Trusts and estates.
(1) In general. In the case of a trust or estate, base
income means an amount equal to the taxpayer's taxable

income for the taxable year as modified by paragraph (2).
(2) Modifications. Subject to the provisions of
paragraph (3), the taxable income referred to in paragraph
(1) shall be modified by adding thereto the sum of the
following amounts:
(A) An amount equal to all amounts paid or accrued
to the taxpayer as interest or dividends during the
taxable year to the extent excluded from gross income
in the computation of taxable income;
(B) In the case of (i) an estate, $600; (ii) a
trust which, under its governing instrument, is
required to distribute all of its income currently,
$300; and (iii) any other trust, $100, but in each such
case, only to the extent such amount was deducted in
the computation of taxable income;
(C) An amount equal to the amount of tax imposed by
this Act to the extent deducted from gross income in
the computation of taxable income for the taxable
year;
(D) The amount of any net operating loss deduction
taken in arriving at taxable income, other than a net
operating loss carried forward from a taxable year
ending prior to December 31, 1986;
(E) For taxable years in which a net operating
loss carryback or carryforward from a taxable year
ending prior to December 31, 1986 is an element of

taxable income under paragraph (1) of subsection (e)
or subparagraph (E) of paragraph (2) of subsection
(e), the amount by which addition modifications other
than those provided by this subparagraph (E) exceeded
subtraction modifications in such taxable year, with
the following limitations applied in the order that
they are listed:
(i) the addition modification relating to the
net operating loss carried back or forward to the
taxable year from any taxable year ending prior to
December 31, 1986 shall be reduced by the amount
of addition modification under this subparagraph
(E) which related to that net operating loss and
which was taken into account in calculating the
base income of an earlier taxable year, and
(ii) the addition modification relating to the
net operating loss carried back or forward to the
taxable year from any taxable year ending prior to
December 31, 1986 shall not exceed the amount of
such carryback or carryforward;
For taxable years in which there is a net
operating loss carryback or carryforward from more
than one other taxable year ending prior to December
31, 1986, the addition modification provided in this
subparagraph (E) shall be the sum of the amounts
computed independently under the preceding provisions

of this subparagraph (E) for each such taxable year;
(F) For taxable years ending on or after January
1, 1989, an amount equal to the tax deducted pursuant
to Section 164 of the Internal Revenue Code if the
trust or estate is claiming the same tax for purposes
of the Illinois foreign tax credit under Section 601
of this Act;
(G) An amount equal to the amount of the capital
gain deduction allowable under the Internal Revenue
Code, to the extent deducted from gross income in the
computation of taxable income;
(G-5) For taxable years ending after December 31,
1997, an amount equal to any eligible remediation
costs that the trust or estate deducted in computing
adjusted gross income and for which the trust or
estate claims a credit under subsection (l) of Section
201;
(G-10) For taxable years 2001 and thereafter, an
amount equal to the bonus depreciation deduction taken
on the taxpayer's federal income tax return for the
taxable year under subsection (k) of Section 168 of
the Internal Revenue Code; and
(G-11) If the taxpayer sells, transfers, abandons,
or otherwise disposes of property for which the
taxpayer was required in any taxable year to make an
addition modification under subparagraph (G-10), then

an amount equal to the aggregate amount of the
deductions taken in all taxable years under
subparagraph (R) with respect to that property.
If the taxpayer continues to own property through
the last day of the last tax year for which a
subtraction is allowed with respect to that property
under subparagraph (R) and for which the taxpayer was
allowed in any taxable year to make a subtraction
modification under subparagraph (R), then an amount
equal to that subtraction modification.
The taxpayer is required to make the addition
modification under this subparagraph only once with
respect to any one piece of property;
(G-12) An amount equal to the amount otherwise
allowed as a deduction in computing base income for
interest paid, accrued, or incurred, directly or
indirectly, (i) for taxable years ending on or after
December 31, 2004, to a foreign person who would be a
member of the same unitary business group but for the
fact that the foreign person's business activity
outside the United States is 80% or more of the foreign
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business
group but for the fact that the person is prohibited
under Section 1501(a)(27) from being included in the

unitary business group because he or she is ordinarily
required to apportion business income under different
subsections of Section 304. The addition modification
required by this subparagraph shall be reduced to the
extent that dividends were included in base income of
the unitary group for the same taxable year and
received by the taxpayer or by a member of the
taxpayer's unitary business group (including amounts
included in gross income pursuant to Sections 951
through 964 of the Internal Revenue Code and amounts
included in gross income under Section 78 of the
Internal Revenue Code) with respect to the stock of
the same person to whom the interest was paid,
accrued, or incurred.
This paragraph shall not apply to the following:
(i) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person who
is subject in a foreign country or state, other
than a state which requires mandatory unitary
reporting, to a tax on or measured by net income
with respect to such interest; or
(ii) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer can establish, based on a
preponderance of the evidence, both of the
following:

(a) the person, during the same taxable
year, paid, accrued, or incurred, the interest
to a person that is not a related member, and
(b) the transaction giving rise to the
interest expense between the taxpayer and the
person did not have as a principal purpose the
avoidance of Illinois income tax, and is paid
pursuant to a contract or agreement that
reflects an arm's-length interest rate and
terms; or
(iii) the taxpayer can establish, based on
clear and convincing evidence, that the interest
paid, accrued, or incurred relates to a contract
or agreement entered into at arm's-length rates
and terms and the principal purpose for the
payment is not federal or Illinois tax avoidance;
or
(iv) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer establishes by clear and convincing
evidence that the adjustments are unreasonable; or
if the taxpayer and the Director agree in writing
to the application or use of an alternative method
of apportionment under Section 304(f).
Nothing in this subsection shall preclude the
Director from making any other adjustment

otherwise allowed under Section 404 of this Act
for any tax year beginning after the effective
date of this amendment provided such adjustment is
made pursuant to regulation adopted by the
Department and such regulations provide methods
and standards by which the Department will utilize
its authority under Section 404 of this Act;
(G-13) An amount equal to the amount of intangible
expenses and costs otherwise allowed as a deduction in
computing base income, and that were paid, accrued, or
incurred, directly or indirectly, (i) for taxable
years ending on or after December 31, 2004, to a
foreign person who would be a member of the same
unitary business group but for the fact that the
foreign person's business activity outside the United
States is 80% or more of that person's total business
activity and (ii) for taxable years ending on or after
December 31, 2008, to a person who would be a member of
the same unitary business group but for the fact that
the person is prohibited under Section 1501(a)(27)
from being included in the unitary business group
because he or she is ordinarily required to apportion
business income under different subsections of Section
304. The addition modification required by this
subparagraph shall be reduced to the extent that
dividends were included in base income of the unitary

group for the same taxable year and received by the
taxpayer or by a member of the taxpayer's unitary
business group (including amounts included in gross
income pursuant to Sections 951 through 964 of the
Internal Revenue Code and amounts included in gross
income under Section 78 of the Internal Revenue Code)
with respect to the stock of the same person to whom
the intangible expenses and costs were directly or
indirectly paid, incurred, or accrued. The preceding
sentence shall not apply to the extent that the same
dividends caused a reduction to the addition
modification required under Section 203(c)(2)(G-12) of
this Act. As used in this subparagraph, the term
"intangible expenses and costs" includes: (1)
expenses, losses, and costs for or related to the
direct or indirect acquisition, use, maintenance or
management, ownership, sale, exchange, or any other
disposition of intangible property; (2) losses
incurred, directly or indirectly, from factoring
transactions or discounting transactions; (3) royalty,
patent, technical, and copyright fees; (4) licensing
fees; and (5) other similar expenses and costs. For
purposes of this subparagraph, "intangible property"
includes patents, patent applications, trade names,
trademarks, service marks, copyrights, mask works,
trade secrets, and similar types of intangible assets.

This paragraph shall not apply to the following:
(i) any item of intangible expenses or costs
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person who
is subject in a foreign country or state, other
than a state which requires mandatory unitary
reporting, to a tax on or measured by net income
with respect to such item; or
(ii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, if the taxpayer can establish, based
on a preponderance of the evidence, both of the
following:
(a) the person during the same taxable
year paid, accrued, or incurred, the
intangible expense or cost to a person that is
not a related member, and
(b) the transaction giving rise to the
intangible expense or cost between the
taxpayer and the person did not have as a
principal purpose the avoidance of Illinois
income tax, and is paid pursuant to a contract
or agreement that reflects arm's-length terms;
or
(iii) any item of intangible expense or cost
paid, accrued, or incurred, directly or

indirectly, from a transaction with a person if
the taxpayer establishes by clear and convincing
evidence, that the adjustments are unreasonable;
or if the taxpayer and the Director agree in
writing to the application or use of an
alternative method of apportionment under Section
304(f);
Nothing in this subsection shall preclude the
Director from making any other adjustment
otherwise allowed under Section 404 of this Act
for any tax year beginning after the effective
date of this amendment provided such adjustment is
made pursuant to regulation adopted by the
Department and such regulations provide methods
and standards by which the Department will utilize
its authority under Section 404 of this Act;
(G-14) For taxable years ending on or after
December 31, 2008, an amount equal to the amount of
insurance premium expenses and costs otherwise allowed
as a deduction in computing base income, and that were
paid, accrued, or incurred, directly or indirectly, to
a person who would be a member of the same unitary
business group but for the fact that the person is
prohibited under Section 1501(a)(27) from being
included in the unitary business group because he or
she is ordinarily required to apportion business

income under different subsections of Section 304. The
addition modification required by this subparagraph
shall be reduced to the extent that dividends were
included in base income of the unitary group for the
same taxable year and received by the taxpayer or by a
member of the taxpayer's unitary business group
(including amounts included in gross income under
Sections 951 through 964 of the Internal Revenue Code
and amounts included in gross income under Section 78
of the Internal Revenue Code) with respect to the
stock of the same person to whom the premiums and costs
were directly or indirectly paid, incurred, or
accrued. The preceding sentence does not apply to the
extent that the same dividends caused a reduction to
the addition modification required under Section
203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this
Act;
(G-15) An amount equal to the credit allowable to
the taxpayer under Section 218(a) of this Act,
determined without regard to Section 218(c) of this
Act;
(G-16) For taxable years ending on or after
December 31, 2017, an amount equal to the deduction
allowed under Section 199 of the Internal Revenue Code
for the taxable year;
(G-17) the amount that is claimed as a federal

deduction when computing the taxpayer's federal
taxable income for the taxable year and that is
attributable to an endowment gift for which the
taxpayer receives a credit under the Illinois Gives
Tax Credit Act;
and by deducting from the total so obtained the sum of the
following amounts:
(H) An amount equal to all amounts included in
such total pursuant to the provisions of Sections
402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 408
of the Internal Revenue Code or included in such total
as distributions under the provisions of any
retirement or disability plan for employees of any
governmental agency or unit, or retirement payments to
retired partners, which payments are excluded in
computing net earnings from self employment by Section
1402 of the Internal Revenue Code and regulations
adopted pursuant thereto;
(I) The valuation limitation amount;
(J) An amount equal to the amount of any tax
imposed by this Act which was refunded to the taxpayer
and included in such total for the taxable year;
(K) An amount equal to all amounts included in
taxable income as modified by subparagraphs (A), (B),
(C), (D), (E), (F) and (G) which are exempt from
taxation by this State either by reason of its

statutes or Constitution or by reason of the
Constitution, treaties or statutes of the United
States; provided that, in the case of any statute of
this State that exempts income derived from bonds or
other obligations from the tax imposed under this Act,
the amount exempted shall be the interest net of bond
premium amortization;
(L) With the exception of any amounts subtracted
under subparagraph (K), an amount equal to the sum of
all amounts disallowed as deductions by (i) Sections
171(a)(2) and 265(a)(2) of the Internal Revenue Code,
and all amounts of expenses allocable to interest and
disallowed as deductions by Section 265(a)(1) of the
Internal Revenue Code; and (ii) for taxable years
ending on or after August 13, 1999, Sections
171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
Internal Revenue Code, plus, (iii) for taxable years
ending on or after December 31, 2011, Section
45G(e)(3) of the Internal Revenue Code and, for
taxable years ending on or after December 31, 2008,
any amount included in gross income under Section 87
of the Internal Revenue Code; the provisions of this
subparagraph are exempt from the provisions of Section
250;
(M) An amount equal to those dividends included in
such total which were paid by a corporation which

conducts business operations in a River Edge
Redevelopment Zone or zones created under the River
Edge Redevelopment Zone Act and conducts substantially
all of its operations in a River Edge Redevelopment
Zone or zones. This subparagraph (M) is exempt from
the provisions of Section 250;
(N) An amount equal to any contribution made to a
job training project established pursuant to the Tax
Increment Allocation Redevelopment Act;
(O) An amount equal to those dividends included in
such total that were paid by a corporation that
conducts business operations in a federally designated
Foreign Trade Zone or Sub-Zone and that is designated
a High Impact Business located in Illinois; provided
that dividends eligible for the deduction provided in
subparagraph (M) of paragraph (2) of this subsection
shall not be eligible for the deduction provided under
this subparagraph (O);
(P) An amount equal to the amount of the deduction
used to compute the federal income tax credit for
restoration of substantial amounts held under claim of
right for the taxable year pursuant to Section 1341 of
the Internal Revenue Code;
(Q) For taxable year 1999 and thereafter, an
amount equal to the amount of any (i) distributions,
to the extent includible in gross income for federal

income tax purposes, made to the taxpayer because of
his or her status as a victim of persecution for racial
or religious reasons by Nazi Germany or any other Axis
regime or as an heir of the victim and (ii) items of
income, to the extent includible in gross income for
federal income tax purposes, attributable to, derived
from or in any way related to assets stolen from,
hidden from, or otherwise lost to a victim of
persecution for racial or religious reasons by Nazi
Germany or any other Axis regime immediately prior to,
during, and immediately after World War II, including,
but not limited to, interest on the proceeds
receivable as insurance under policies issued to a
victim of persecution for racial or religious reasons
by Nazi Germany or any other Axis regime by European
insurance companies immediately prior to and during
World War II; provided, however, this subtraction from
federal adjusted gross income does not apply to assets
acquired with such assets or with the proceeds from
the sale of such assets; provided, further, this
paragraph shall only apply to a taxpayer who was the
first recipient of such assets after their recovery
and who is a victim of persecution for racial or
religious reasons by Nazi Germany or any other Axis
regime or as an heir of the victim. The amount of and
the eligibility for any public assistance, benefit, or

similar entitlement is not affected by the inclusion
of items (i) and (ii) of this paragraph in gross income
for federal income tax purposes. This paragraph is
exempt from the provisions of Section 250;
(R) For taxable years 2001 and thereafter, for the
taxable year in which the bonus depreciation deduction
is taken on the taxpayer's federal income tax return
under subsection (k) of Section 168 of the Internal
Revenue Code and for each applicable taxable year
thereafter, an amount equal to "x", where:
(1) "y" equals the amount of the depreciation
deduction taken for the taxable year on the
taxpayer's federal income tax return on property
for which the bonus depreciation deduction was
taken in any year under subsection (k) of Section
168 of the Internal Revenue Code, but not
including the bonus depreciation deduction;
(2) for taxable years ending on or before
December 31, 2005, "x" equals "y" multiplied by 30
and then divided by 70 (or "y" multiplied by
0.429); and
(3) for taxable years ending after December
31, 2005:
(i) for property on which a bonus
depreciation deduction of 30% of the adjusted
basis was taken, "x" equals "y" multiplied by

30 and then divided by 70 (or "y" multiplied
by 0.429);
(ii) for property on which a bonus
depreciation deduction of 50% of the adjusted
basis was taken, "x" equals "y" multiplied by
1.0;
(iii) for property on which a bonus
depreciation deduction of 100% of the adjusted
basis was taken in a taxable year ending on or
after December 31, 2021, "x" equals the
depreciation deduction that would be allowed
on that property if the taxpayer had made the
election under Section 168(k)(7) of the
Internal Revenue Code to not claim bonus
depreciation on that property; and
(iv) for property on which a bonus
depreciation deduction of a percentage other
than 30%, 50% or 100% of the adjusted basis
was taken in a taxable year ending on or after
December 31, 2021, "x" equals "y" multiplied
by 100 times the percentage bonus depreciation
on the property (that is, 100(bonus%)) and
then divided by 100 times 1 minus the
percentage bonus depreciation on the property
(that is, 100(1-bonus%)).
The aggregate amount deducted under this

subparagraph in all taxable years for any one piece of
property may not exceed the amount of the bonus
depreciation deduction taken on that property on the
taxpayer's federal income tax return under subsection
(k) of Section 168 of the Internal Revenue Code. This
subparagraph (R) is exempt from the provisions of
Section 250;
(S) If the taxpayer sells, transfers, abandons, or
otherwise disposes of property for which the taxpayer
was required in any taxable year to make an addition
modification under subparagraph (G-10), then an amount
equal to that addition modification.
If the taxpayer continues to own property through
the last day of the last tax year for which a
subtraction is allowed with respect to that property
under subparagraph (R) and for which the taxpayer was
required in any taxable year to make an addition
modification under subparagraph (G-10), then an amount
equal to that addition modification.
The taxpayer is allowed to take the deduction
under this subparagraph only once with respect to any
one piece of property.
This subparagraph (S) is exempt from the
provisions of Section 250;
(T) The amount of (i) any interest income (net of
the deductions allocable thereto) taken into account

for the taxable year with respect to a transaction
with a taxpayer that is required to make an addition
modification with respect to such transaction under
Section 203(a)(2)(D-17), 203(b)(2)(E-12),
203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
the amount of such addition modification and (ii) any
income from intangible property (net of the deductions
allocable thereto) taken into account for the taxable
year with respect to a transaction with a taxpayer
that is required to make an addition modification with
respect to such transaction under Section
203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
203(d)(2)(D-8), but not to exceed the amount of such
addition modification. This subparagraph (T) is exempt
from the provisions of Section 250;
(U) An amount equal to the interest income taken
into account for the taxable year (net of the
deductions allocable thereto) with respect to
transactions with (i) a foreign person who would be a
member of the taxpayer's unitary business group but
for the fact the foreign person's business activity
outside the United States is 80% or more of that
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business
group but for the fact that the person is prohibited

under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily
required to apportion business income under different
subsections of Section 304, but not to exceed the
addition modification required to be made for the same
taxable year under Section 203(c)(2)(G-12) for
interest paid, accrued, or incurred, directly or
indirectly, to the same person. This subparagraph (U)
is exempt from the provisions of Section 250;
(V) An amount equal to the income from intangible
property taken into account for the taxable year (net
of the deductions allocable thereto) with respect to
transactions with (i) a foreign person who would be a
member of the taxpayer's unitary business group but
for the fact that the foreign person's business
activity outside the United States is 80% or more of
that person's total business activity and (ii) for
taxable years ending on or after December 31, 2008, to
a person who would be a member of the same unitary
business group but for the fact that the person is
prohibited under Section 1501(a)(27) from being
included in the unitary business group because he or
she is ordinarily required to apportion business
income under different subsections of Section 304, but
not to exceed the addition modification required to be
made for the same taxable year under Section

203(c)(2)(G-13) for intangible expenses and costs
paid, accrued, or incurred, directly or indirectly, to
the same foreign person. This subparagraph (V) is
exempt from the provisions of Section 250;
(W) in the case of an estate, an amount equal to
all amounts included in such total pursuant to the
provisions of Section 111 of the Internal Revenue Code
as a recovery of items previously deducted by the
decedent from adjusted gross income in the computation
of taxable income. This subparagraph (W) is exempt
from Section 250;
(X) an amount equal to the refund included in such
total of any tax deducted for federal income tax
purposes, to the extent that deduction was added back
under subparagraph (F). This subparagraph (X) is
exempt from the provisions of Section 250;
(Y) For taxable years ending on or after December
31, 2011, in the case of a taxpayer who was required to
add back any insurance premiums under Section
203(c)(2)(G-14), such taxpayer may elect to subtract
that part of a reimbursement received from the
insurance company equal to the amount of the expense
or loss (including expenses incurred by the insurance
company) that would have been taken into account as a
deduction for federal income tax purposes if the
expense or loss had been uninsured. If a taxpayer

makes the election provided for by this subparagraph
(Y), the insurer to which the premiums were paid must
add back to income the amount subtracted by the
taxpayer pursuant to this subparagraph (Y). This
subparagraph (Y) is exempt from the provisions of
Section 250;
(Z) For taxable years beginning after December 31,
2018 and before January 1, 2026, the amount of excess
business loss of the taxpayer disallowed as a
deduction by Section 461(l)(1)(B) of the Internal
Revenue Code; and
(AA) For taxable years beginning on or after
January 1, 2023, for any cannabis establishment
operating in this State and licensed under the
Cannabis Regulation and Tax Act or any cannabis
cultivation center or medical cannabis dispensing
organization operating in this State and licensed
under the Compassionate Use of Medical Cannabis
Program Act, an amount equal to the deductions that
were disallowed under Section 280E of the Internal
Revenue Code for the taxable year and that would not be
added back under this subsection. The provisions of
this subparagraph (AA) are exempt from the provisions
of Section 250.
(3) Limitation. The amount of any modification
otherwise required under this subsection shall, under

regulations prescribed by the Department, be adjusted by
any amounts included therein which were properly paid,
credited, or required to be distributed, or permanently
set aside for charitable purposes pursuant to Internal
Revenue Code Section 642(c) during the taxable year.
(d) Partnerships.
(1) In general. In the case of a partnership, base
income means an amount equal to the taxpayer's taxable
income for the taxable year as modified by paragraph (2).
(2) Modifications. The taxable income referred to in
paragraph (1) shall be modified by adding thereto the sum
of the following amounts:
(A) An amount equal to all amounts paid or accrued
to the taxpayer as interest or dividends during the
taxable year to the extent excluded from gross income
in the computation of taxable income;
(B) An amount equal to the amount of tax imposed by
this Act to the extent deducted from gross income for
the taxable year;
(C) The amount of deductions allowed to the
partnership pursuant to Section 707 (c) of the
Internal Revenue Code in calculating its taxable
income;
(D) An amount equal to the amount of the capital
gain deduction allowable under the Internal Revenue

Code, to the extent deducted from gross income in the
computation of taxable income;
(D-5) For taxable years 2001 and thereafter, an
amount equal to the bonus depreciation deduction taken
on the taxpayer's federal income tax return for the
taxable year under subsection (k) of Section 168 of
the Internal Revenue Code;
(D-6) If the taxpayer sells, transfers, abandons,
or otherwise disposes of property for which the
taxpayer was required in any taxable year to make an
addition modification under subparagraph (D-5), then
an amount equal to the aggregate amount of the
deductions taken in all taxable years under
subparagraph (O) with respect to that property.
If the taxpayer continues to own property through
the last day of the last tax year for which a
subtraction is allowed with respect to that property
under subparagraph (O) and for which the taxpayer was
allowed in any taxable year to make a subtraction
modification under subparagraph (O), then an amount
equal to that subtraction modification.
The taxpayer is required to make the addition
modification under this subparagraph only once with
respect to any one piece of property;
(D-7) An amount equal to the amount otherwise
allowed as a deduction in computing base income for

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

(i) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person who
is subject in a foreign country or state, other
than a state which requires mandatory unitary
reporting, to a tax on or measured by net income
with respect to such interest; or
(ii) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer can establish, based on a
preponderance of the evidence, both of the
following:
(a) the person, during the same taxable
year, paid, accrued, or incurred, the interest
to a person that is not a related member, and
(b) the transaction giving rise to the
interest expense between the taxpayer and the
person did not have as a principal purpose the
avoidance of Illinois income tax, and is paid
pursuant to a contract or agreement that
reflects an arm's-length interest rate and
terms; or
(iii) the taxpayer can establish, based on
clear and convincing evidence, that the interest
paid, accrued, or incurred relates to a contract
or agreement entered into at arm's-length rates
and terms and the principal purpose for the

payment is not federal or Illinois tax avoidance;
or
(iv) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer establishes by clear and convincing
evidence that the adjustments are unreasonable; or
if the taxpayer and the Director agree in writing
to the application or use of an alternative method
of apportionment under Section 304(f).
Nothing in this subsection shall preclude the
Director from making any other adjustment
otherwise allowed under Section 404 of this Act
for any tax year beginning after the effective
date of this amendment provided such adjustment is
made pursuant to regulation adopted by the
Department and such regulations provide methods
and standards by which the Department will utilize
its authority under Section 404 of this Act; and
(D-8) An amount equal to the amount of intangible
expenses and costs otherwise allowed as a deduction in
computing base income, and that were paid, accrued, or
incurred, directly or indirectly, (i) for taxable
years ending on or after December 31, 2004, to a
foreign person who would be a member of the same
unitary business group but for the fact that the
foreign person's business activity outside the United

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

indirect acquisition, use, maintenance or management,
ownership, sale, exchange, or any other disposition of
intangible property; (2) losses incurred, directly or
indirectly, from factoring transactions or discounting
transactions; (3) royalty, patent, technical, and
copyright fees; (4) licensing fees; and (5) other
similar expenses and costs. For purposes of this
subparagraph, "intangible property" includes patents,
patent applications, trade names, trademarks, service
marks, copyrights, mask works, trade secrets, and
similar types of intangible assets;
This paragraph shall not apply to the following:
(i) any item of intangible expenses or costs
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person who
is subject in a foreign country or state, other
than a state which requires mandatory unitary
reporting, to a tax on or measured by net income
with respect to such item; or
(ii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, if the taxpayer can establish, based
on a preponderance of the evidence, both of the
following:
(a) the person during the same taxable
year paid, accrued, or incurred, the

intangible expense or cost to a person that is
not a related member, and
(b) the transaction giving rise to the
intangible expense or cost between the
taxpayer and the person did not have as a
principal purpose the avoidance of Illinois
income tax, and is paid pursuant to a contract
or agreement that reflects arm's-length terms;
or
(iii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person if
the taxpayer establishes by clear and convincing
evidence, that the adjustments are unreasonable;
or if the taxpayer and the Director agree in
writing to the application or use of an
alternative method of apportionment under Section
304(f);
Nothing in this subsection shall preclude the
Director from making any other adjustment
otherwise allowed under Section 404 of this Act
for any tax year beginning after the effective
date of this amendment provided such adjustment is
made pursuant to regulation adopted by the
Department and such regulations provide methods
and standards by which the Department will utilize

its authority under Section 404 of this Act;
(D-9) For taxable years ending on or after
December 31, 2008, an amount equal to the amount of
insurance premium expenses and costs otherwise allowed
as a deduction in computing base income, and that were
paid, accrued, or incurred, directly or indirectly, to
a person who would be a member of the same unitary
business group but for the fact that the person is
prohibited under Section 1501(a)(27) from being
included in the unitary business group because he or
she is ordinarily required to apportion business
income under different subsections of Section 304. The
addition modification required by this subparagraph
shall be reduced to the extent that dividends were
included in base income of the unitary group for the
same taxable year and received by the taxpayer or by a
member of the taxpayer's unitary business group
(including amounts included in gross income under
Sections 951 through 964 of the Internal Revenue Code
and amounts included in gross income under Section 78
of the Internal Revenue Code) with respect to the
stock of the same person to whom the premiums and costs
were directly or indirectly paid, incurred, or
accrued. The preceding sentence does not apply to the
extent that the same dividends caused a reduction to
the addition modification required under Section

203(d)(2)(D-7) or Section 203(d)(2)(D-8) of this Act;
(D-10) An amount equal to the credit allowable to
the taxpayer under Section 218(a) of this Act,
determined without regard to Section 218(c) of this
Act;
(D-11) For taxable years ending on or after
December 31, 2017, an amount equal to the deduction
allowed under Section 199 of the Internal Revenue Code
for the taxable year;
(D-12) the amount that is claimed as a federal
deduction when computing the taxpayer's federal
taxable income for the taxable year and that is
attributable to an endowment gift for which the
taxpayer receives a credit under the Illinois Gives
Tax Credit Act;
and by deducting from the total so obtained the following
amounts:
(E) The valuation limitation amount;
(F) An amount equal to the amount of any tax
imposed by this Act which was refunded to the taxpayer
and included in such total for the taxable year;
(G) An amount equal to all amounts included in
taxable income as modified by subparagraphs (A), (B),
(C) and (D) which are exempt from taxation by this
State either by reason of its statutes or Constitution
or by reason of the Constitution, treaties or statutes

of the United States; provided that, in the case of any
statute of this State that exempts income derived from
bonds or other obligations from the tax imposed under
this Act, the amount exempted shall be the interest
net of bond premium amortization;
(H) Any income of the partnership which
constitutes personal service income as defined in
Section 1348(b)(1) of the Internal Revenue Code (as in
effect December 31, 1981) or a reasonable allowance
for compensation paid or accrued for services rendered
by partners to the partnership, whichever is greater;
this subparagraph (H) is exempt from the provisions of
Section 250;
(I) An amount equal to all amounts of income
distributable to an entity subject to the Personal
Property Tax Replacement Income Tax imposed by
subsections (c) and (d) of Section 201 of this Act
including amounts distributable to organizations
exempt from federal income tax by reason of Section
501(a) of the Internal Revenue Code; this subparagraph
(I) is exempt from the provisions of Section 250;
(J) With the exception of any amounts subtracted
under subparagraph (G), an amount equal to the sum of
all amounts disallowed as deductions by (i) Sections
171(a)(2) and 265(a)(2) of the Internal Revenue Code,
and all amounts of expenses allocable to interest and

disallowed as deductions by Section 265(a)(1) of the
Internal Revenue Code; and (ii) for taxable years
ending on or after August 13, 1999, Sections
171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
Internal Revenue Code, plus, (iii) for taxable years
ending on or after December 31, 2011, Section
45G(e)(3) of the Internal Revenue Code and, for
taxable years ending on or after December 31, 2008,
any amount included in gross income under Section 87
of the Internal Revenue Code; the provisions of this
subparagraph are exempt from the provisions of Section
250;
(K) An amount equal to those dividends included in
such total which were paid by a corporation which
conducts business operations in a River Edge
Redevelopment Zone or zones created under the River
Edge Redevelopment Zone Act and conducts substantially
all of its operations from a River Edge Redevelopment
Zone or zones. This subparagraph (K) is exempt from
the provisions of Section 250;
(L) An amount equal to any contribution made to a
job training project established pursuant to the Real
Property Tax Increment Allocation Redevelopment Act;
(M) An amount equal to those dividends included in
such total that were paid by a corporation that
conducts business operations in a federally designated

Foreign Trade Zone or Sub-Zone and that is designated
a High Impact Business located in Illinois; provided
that dividends eligible for the deduction provided in
subparagraph (K) of paragraph (2) of this subsection
shall not be eligible for the deduction provided under
this subparagraph (M);
(N) An amount equal to the amount of the deduction
used to compute the federal income tax credit for
restoration of substantial amounts held under claim of
right for the taxable year pursuant to Section 1341 of
the Internal Revenue Code;
(O) For taxable years 2001 and thereafter, for the
taxable year in which the bonus depreciation deduction
is taken on the taxpayer's federal income tax return
under subsection (k) of Section 168 of the Internal
Revenue Code and for each applicable taxable year
thereafter, an amount equal to "x", where:
(1) "y" equals the amount of the depreciation
deduction taken for the taxable year on the
taxpayer's federal income tax return on property
for which the bonus depreciation deduction was
taken in any year under subsection (k) of Section
168 of the Internal Revenue Code, but not
including the bonus depreciation deduction;
(2) for taxable years ending on or before
December 31, 2005, "x" equals "y" multiplied by 30

and then divided by 70 (or "y" multiplied by
0.429); and
(3) for taxable years ending after December
31, 2005:
(i) for property on which a bonus
depreciation deduction of 30% of the adjusted
basis was taken, "x" equals "y" multiplied by
30 and then divided by 70 (or "y" multiplied
by 0.429);
(ii) for property on which a bonus
depreciation deduction of 50% of the adjusted
basis was taken, "x" equals "y" multiplied by
1.0;
(iii) for property on which a bonus
depreciation deduction of 100% of the adjusted
basis was taken in a taxable year ending on or
after December 31, 2021, "x" equals the
depreciation deduction that would be allowed
on that property if the taxpayer had made the
election under Section 168(k)(7) of the
Internal Revenue Code to not claim bonus
depreciation on that property; and
(iv) for property on which a bonus
depreciation deduction of a percentage other
than 30%, 50% or 100% of the adjusted basis
was taken in a taxable year ending on or after

December 31, 2021, "x" equals "y" multiplied
by 100 times the percentage bonus depreciation
on the property (that is, 100(bonus%)) and
then divided by 100 times 1 minus the
percentage bonus depreciation on the property
(that is, 100(1-bonus%)).
The aggregate amount deducted under this
subparagraph in all taxable years for any one piece of
property may not exceed the amount of the bonus
depreciation deduction taken on that property on the
taxpayer's federal income tax return under subsection
(k) of Section 168 of the Internal Revenue Code. This
subparagraph (O) is exempt from the provisions of
Section 250;
(P) If the taxpayer sells, transfers, abandons, or
otherwise disposes of property for which the taxpayer
was required in any taxable year to make an addition
modification under subparagraph (D-5), then an amount
equal to that addition modification.
If the taxpayer continues to own property through
the last day of the last tax year for which a
subtraction is allowed with respect to that property
under subparagraph (O) and for which the taxpayer was
required in any taxable year to make an addition
modification under subparagraph (D-5), then an amount
equal to that addition modification.

The taxpayer is allowed to take the deduction
under this subparagraph only once with respect to any
one piece of property.
This subparagraph (P) is exempt from the
provisions of Section 250;
(Q) The amount of (i) any interest income (net of
the deductions allocable thereto) taken into account
for the taxable year with respect to a transaction
with a taxpayer that is required to make an addition
modification with respect to such transaction under
Section 203(a)(2)(D-17), 203(b)(2)(E-12),
203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
the amount of such addition modification and (ii) any
income from intangible property (net of the deductions
allocable thereto) taken into account for the taxable
year with respect to a transaction with a taxpayer
that is required to make an addition modification with
respect to such transaction under Section
203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
203(d)(2)(D-8), but not to exceed the amount of such
addition modification. This subparagraph (Q) is exempt
from Section 250;
(R) An amount equal to the interest income taken
into account for the taxable year (net of the
deductions allocable thereto) with respect to
transactions with (i) a foreign person who would be a

member of the taxpayer's unitary business group but
for the fact that the foreign person's business
activity outside the United States is 80% or more of
that person's total business activity and (ii) for
taxable years ending on or after December 31, 2008, to
a person who would be a member of the same unitary
business group but for the fact that the person is
prohibited under Section 1501(a)(27) from being
included in the unitary business group because he or
she is ordinarily required to apportion business
income under different subsections of Section 304, but
not to exceed the addition modification required to be
made for the same taxable year under Section
203(d)(2)(D-7) for interest paid, accrued, or
incurred, directly or indirectly, to the same person.
This subparagraph (R) is exempt from Section 250;
(S) An amount equal to the income from intangible
property taken into account for the taxable year (net
of the deductions allocable thereto) with respect to
transactions with (i) a foreign person who would be a
member of the taxpayer's unitary business group but
for the fact that the foreign person's business
activity outside the United States is 80% or more of
that person's total business activity and (ii) for
taxable years ending on or after December 31, 2008, to
a person who would be a member of the same unitary

business group but for the fact that the person is
prohibited under Section 1501(a)(27) from being
included in the unitary business group because he or
she is ordinarily required to apportion business
income under different subsections of Section 304, but
not to exceed the addition modification required to be
made for the same taxable year under Section
203(d)(2)(D-8) for intangible expenses and costs paid,
accrued, or incurred, directly or indirectly, to the
same person. This subparagraph (S) is exempt from
Section 250;
(T) For taxable years ending on or after December
31, 2011, in the case of a taxpayer who was required to
add back any insurance premiums under Section
203(d)(2)(D-9), such taxpayer may elect to subtract
that part of a reimbursement received from the
insurance company equal to the amount of the expense
or loss (including expenses incurred by the insurance
company) that would have been taken into account as a
deduction for federal income tax purposes if the
expense or loss had been uninsured. If a taxpayer
makes the election provided for by this subparagraph
(T), the insurer to which the premiums were paid must
add back to income the amount subtracted by the
taxpayer pursuant to this subparagraph (T). This
subparagraph (T) is exempt from the provisions of

Section 250; and
(U) For taxable years beginning on or after
January 1, 2023, for any cannabis establishment
operating in this State and licensed under the
Cannabis Regulation and Tax Act or any cannabis
cultivation center or medical cannabis dispensing
organization operating in this State and licensed
under the Compassionate Use of Medical Cannabis
Program Act, an amount equal to the deductions that
were disallowed under Section 280E of the Internal
Revenue Code for the taxable year and that would not be
added back under this subsection. The provisions of
this subparagraph (U) are exempt from the provisions
of Section 250.
(e) Gross income; adjusted gross income; taxable income.
(1) In general. Subject to the provisions of paragraph
(2) and subsection (b)(3), for purposes of this Section
and Section 803(e), a taxpayer's gross income, adjusted
gross income, or taxable income for the taxable year shall
mean the amount of gross income, adjusted gross income or
taxable income properly reportable for federal income tax
purposes for the taxable year under the provisions of the
Internal Revenue Code. Taxable income may be less than
zero. However, for taxable years ending on or after
December 31, 1986, net operating loss carryforwards from

taxable years ending prior to December 31, 1986, may not
exceed the sum of federal taxable income for the taxable
year before net operating loss deduction, plus the excess
of addition modifications over subtraction modifications
for the taxable year. For taxable years ending prior to
December 31, 1986, taxable income may never be an amount
in excess of the net operating loss for the taxable year as
defined in subsections (c) and (d) of Section 172 of the
Internal Revenue Code, provided that when taxable income
of a corporation (other than a Subchapter S corporation),
trust, or estate is less than zero and addition
modifications, other than those provided by subparagraph
(E) of paragraph (2) of subsection (b) for corporations or
subparagraph (E) of paragraph (2) of subsection (c) for
trusts and estates, exceed subtraction modifications, an
addition modification must be made under those
subparagraphs for any other taxable year to which the
taxable income less than zero (net operating loss) is
applied under Section 172 of the Internal Revenue Code or
under subparagraph (E) of paragraph (2) of this subsection
(e) applied in conjunction with Section 172 of the
Internal Revenue Code.
(2) Special rule. For purposes of paragraph (1) of
this subsection, the taxable income properly reportable
for federal income tax purposes shall mean:
(A) Certain life insurance companies. In the case

of a life insurance company subject to the tax imposed
by Section 801 of the Internal Revenue Code, life
insurance company taxable income, plus the amount of
distribution from pre-1984 policyholder surplus
accounts as calculated under Section 815a of the
Internal Revenue Code;
(B) Certain other insurance companies. In the case
of mutual insurance companies subject to the tax
imposed by Section 831 of the Internal Revenue Code,
insurance company taxable income;
(C) Regulated investment companies. In the case of
a regulated investment company subject to the tax
imposed by Section 852 of the Internal Revenue Code,
investment company taxable income;
(D) Real estate investment trusts. In the case of
a real estate investment trust subject to the tax
imposed by Section 857 of the Internal Revenue Code,
real estate investment trust taxable income;
(E) Consolidated corporations. In the case of a
corporation which is a member of an affiliated group
of corporations filing a consolidated income tax
return for the taxable year for federal income tax
purposes, taxable income determined as if such
corporation had filed a separate return for federal
income tax purposes for the taxable year and each
preceding taxable year for which it was a member of an

affiliated group. For purposes of this subparagraph,
the taxpayer's separate taxable income shall be
determined as if the election provided by Section
243(b)(2) of the Internal Revenue Code had been in
effect for all such years;
(F) Cooperatives. In the case of a cooperative
corporation or association, the taxable income of such
organization determined in accordance with the
provisions of Section 1381 through 1388 of the
Internal Revenue Code, but without regard to the
prohibition against offsetting losses from patronage
activities against income from nonpatronage
activities; except that a cooperative corporation or
association may make an election to follow its federal
income tax treatment of patronage losses and
nonpatronage losses. In the event such election is
made, such losses shall be computed and carried over
in a manner consistent with subsection (a) of Section
207 of this Act and apportioned by the apportionment
factor reported by the cooperative on its Illinois
income tax return filed for the taxable year in which
the losses are incurred. The election shall be
effective for all taxable years with original returns
due on or after the date of the election. In addition,
the cooperative may file an amended return or returns,
as allowed under this Act, to provide that the

election shall be effective for losses incurred or
carried forward for taxable years occurring prior to
the date of the election. Once made, the election may
only be revoked upon approval of the Director. The
Department shall adopt rules setting forth
requirements for documenting the elections and any
resulting Illinois net loss and the standards to be
used by the Director in evaluating requests to revoke
elections. Public Act 96-932 is declaratory of
existing law;
(G) Subchapter S corporations. In the case of: (i)
a Subchapter S corporation for which there is in
effect an election for the taxable year under Section
1362 of the Internal Revenue Code, the taxable income
of such corporation determined in accordance with
Section 1363(b) of the Internal Revenue Code, except
that taxable income shall take into account those
items which are required by Section 1363(b)(1) of the
Internal Revenue Code to be separately stated; and
(ii) a Subchapter S corporation for which there is in
effect a federal election to opt out of the provisions
of the Subchapter S Revision Act of 1982 and have
applied instead the prior federal Subchapter S rules
as in effect on July 1, 1982, the taxable income of
such corporation determined in accordance with the
federal Subchapter S rules as in effect on July 1,

1982; and
(H) Partnerships. In the case of a partnership,
taxable income determined in accordance with Section
703 of the Internal Revenue Code, except that taxable
income shall take into account those items which are
required by Section 703(a)(1) to be separately stated
but which would be taken into account by an individual
in calculating his taxable income.
(3) Recapture of business expenses on disposition of
asset or business. Notwithstanding any other law to the
contrary, if in prior years income from an asset or
business has been classified as business income and in a
later year is demonstrated to be non-business income, then
all expenses, without limitation, deducted in such later
year and in the 2 immediately preceding taxable years
related to that asset or business that generated the
non-business income shall be added back and recaptured as
business income in the year of the disposition of the
asset or business. Such amount shall be apportioned to
Illinois using the greater of the apportionment fraction
computed for the business under Section 304 of this Act
for the taxable year or the average of the apportionment
fractions computed for the business under Section 304 of
this Act for the taxable year and for the 2 immediately
preceding taxable years.

(f) Valuation limitation amount.
(1) In general. The valuation limitation amount
referred to in subsections (a)(2)(G), (c)(2)(I) and
(d)(2)(E) is an amount equal to:
(A) The sum of the pre-August 1, 1969 appreciation
amounts (to the extent consisting of gain reportable
under the provisions of Section 1245 or 1250 of the
Internal Revenue Code) for all property in respect of
which such gain was reported for the taxable year;
plus
(B) The lesser of (i) the sum of the pre-August 1,
1969 appreciation amounts (to the extent consisting of
capital gain) for all property in respect of which
such gain was reported for federal income tax purposes
for the taxable year, or (ii) the net capital gain for
the taxable year, reduced in either case by any amount
of such gain included in the amount determined under
subsection (a)(2)(F) or (c)(2)(H).
(2) Pre-August 1, 1969 appreciation amount.
(A) If the fair market value of property referred
to in paragraph (1) was readily ascertainable on
August 1, 1969, the pre-August 1, 1969 appreciation
amount for such property is the lesser of (i) the
excess of such fair market value over the taxpayer's
basis (for determining gain) for such property on that
date (determined under the Internal Revenue Code as in

effect on that date), or (ii) the total gain realized
and reportable for federal income tax purposes in
respect of the sale, exchange or other disposition of
such property.
(B) If the fair market value of property referred
to in paragraph (1) was not readily ascertainable on
August 1, 1969, the pre-August 1, 1969 appreciation
amount for such property is that amount which bears
the same ratio to the total gain reported in respect of
the property for federal income tax purposes for the
taxable year, as the number of full calendar months in
that part of the taxpayer's holding period for the
property ending July 31, 1969 bears to the number of
full calendar months in the taxpayer's entire holding
period for the property.
(C) The Department shall prescribe such
regulations as may be necessary to carry out the
purposes of this paragraph.
(g) Double deductions. Unless specifically provided
otherwise, nothing in this Section shall permit the same item
to be deducted more than once.
(h) Legislative intention. Except as expressly provided by
this Section there shall be no modifications or limitations on
the amounts of income, gain, loss or deduction taken into

account in determining gross income, adjusted gross income or
taxable income for federal income tax purposes for the taxable
year, or in the amount of such items entering into the
computation of base income and net income under this Act for
such taxable year, whether in respect of property values as of
August 1, 1969 or otherwise.
(Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21;
102-658, eff. 8-27-21; 102-813, eff. 5-13-22; 102-1112, eff.
12-21-22; 103-8, eff. 6-7-23; 103-478, eff. 1-1-24; revised
9-26-23.)
(35 ILCS 5/241 new)
Sec. 241. The Illinois Gives tax credit.
(a) For taxable years ending on or after December 31, 2025
and ending before January 1, 2030, each taxpayer for whom a tax
credit has been authorized by the Department of Revenue under
the Illinois Gives Tax Credit Act is entitled to a credit
against the tax imposed under subsections (a) and (b) of
Section 201 in an amount equal to the amount authorized under
that Act.
(b) For partners of partnerships and shareholders of
Subchapter S corporations, there is allowed a credit under
this Section to be determined in accordance with Section 251
of this Act.
(c) The credit may not be carried back and may not reduce
the taxpayer's liability to less than zero. If the amount of

the credit exceeds the tax liability for the year, the excess
may be carried forward and applied to the tax liability of the
5 taxable years following the excess credit year. The tax
credit shall be applied to the earliest year for which there is
a tax liability. If there are credits for more than one year
that are available to offset a liability, the earlier credit
shall be applied first.
ARTICLE 175.
Section 175-5. The Property Tax Code is amended by
changing Section 18-185 as follows:
(35 ILCS 200/18-185)
Sec. 18-185. Short title; definitions. This Division 5
may be cited as the Property Tax Extension Limitation Law. As
used in this Division 5:
"Consumer Price Index" means the Consumer Price Index for
All Urban Consumers for all items published by the United
States Department of Labor.
"Extension limitation" means (a) the lesser of 5% or the
percentage increase in the Consumer Price Index during the
12-month calendar year preceding the levy year or (b) the rate
of increase approved by voters under Section 18-205.
"Affected county" means a county of 3,000,000 or more
inhabitants or a county contiguous to a county of 3,000,000 or

more inhabitants.
"Taxing district" has the same meaning provided in Section
1-150, except as otherwise provided in this Section. For the
1991 through 1994 levy years only, "taxing district" includes
only each non-home rule taxing district having the majority of
its 1990 equalized assessed value within any county or
counties contiguous to a county with 3,000,000 or more
inhabitants. Beginning with the 1995 levy year, "taxing
district" includes only each non-home rule taxing district
subject to this Law before the 1995 levy year and each non-home
rule taxing district not subject to this Law before the 1995
levy year having the majority of its 1994 equalized assessed
value in an affected county or counties. Beginning with the
levy year in which this Law becomes applicable to a taxing
district as provided in Section 18-213, "taxing district" also
includes those taxing districts made subject to this Law as
provided in Section 18-213.
"Aggregate extension" for taxing districts to which this
Law applied before the 1995 levy year means the annual
corporate extension for the taxing district and those special
purpose extensions that are made annually for the taxing
district, excluding special purpose extensions: (a) made for
the taxing district to pay interest or principal on general
obligation bonds that were approved by referendum; (b) made
for any taxing district to pay interest or principal on
general obligation bonds issued before October 1, 1991; (c)

made for any taxing district to pay interest or principal on
bonds issued to refund or continue to refund those bonds
issued before October 1, 1991; (d) made for any taxing
district to pay interest or principal on bonds issued to
refund or continue to refund bonds issued after October 1,
1991 that were approved by referendum; (e) made for any taxing
district to pay interest or principal on revenue bonds issued
before October 1, 1991 for payment of which a property tax levy
or the full faith and credit of the unit of local government is
pledged; however, a tax for the payment of interest or
principal on those bonds shall be made only after the
governing body of the unit of local government finds that all
other sources for payment are insufficient to make those
payments; (f) made for payments under a building commission
lease when the lease payments are for the retirement of bonds
issued by the commission before October 1, 1991, to pay for the
building project; (g) made for payments due under installment
contracts entered into before October 1, 1991; (h) made for
payments of principal and interest on bonds issued under the
Metropolitan Water Reclamation District Act to finance
construction projects initiated before October 1, 1991; (i)
made for payments of principal and interest on limited bonds,
as defined in Section 3 of the Local Government Debt Reform
Act, in an amount not to exceed the debt service extension base
less the amount in items (b), (c), (e), and (h) of this
definition for non-referendum obligations, except obligations

initially issued pursuant to referendum; (j) made for payments
of principal and interest on bonds issued under Section 15 of
the Local Government Debt Reform Act; (k) made by a school
district that participates in the Special Education District
of Lake County, created by special education joint agreement
under Section 10-22.31 of the School Code, for payment of the
school district's share of the amounts required to be
contributed by the Special Education District of Lake County
to the Illinois Municipal Retirement Fund under Article 7 of
the Illinois Pension Code; the amount of any extension under
this item (k) shall be certified by the school district to the
county clerk; (l) made to fund expenses of providing joint
recreational programs for persons with disabilities under
Section 5-8 of the Park District Code or Section 11-95-14 of
the Illinois Municipal Code; (m) made for temporary relocation
loan repayment purposes pursuant to Sections 2-3.77 and
17-2.2d of the School Code; (n) made for payment of principal
and interest on any bonds issued under the authority of
Section 17-2.2d of the School Code; (o) made for contributions
to a firefighter's pension fund created under Article 4 of the
Illinois Pension Code, to the extent of the amount certified
under item (5) of Section 4-134 of the Illinois Pension Code;
and (p) made for road purposes in the first year after a
township assumes the rights, powers, duties, assets, property,
liabilities, obligations, and responsibilities of a road
district abolished under the provisions of Section 6-133 of

the Illinois Highway Code; and (q) made under Section 4 of the
Community Mental Health Act to provide the necessary funds or
to supplement existing funds for community mental health
facilities and services, including facilities and services for
the person with a developmental disability or a substance use
disorder.
"Aggregate extension" for the taxing districts to which
this Law did not apply before the 1995 levy year (except taxing
districts subject to this Law in accordance with Section
18-213) means the annual corporate extension for the taxing
district and those special purpose extensions that are made
annually for the taxing district, excluding special purpose
extensions: (a) made for the taxing district to pay interest
or principal on general obligation bonds that were approved by
referendum; (b) made for any taxing district to pay interest
or principal on general obligation bonds issued before March
1, 1995; (c) made for any taxing district to pay interest or
principal on bonds issued to refund or continue to refund
those bonds issued before March 1, 1995; (d) made for any
taxing district to pay interest or principal on bonds issued
to refund or continue to refund bonds issued after March 1,
1995 that were approved by referendum; (e) made for any taxing
district to pay interest or principal on revenue bonds issued
before March 1, 1995 for payment of which a property tax levy
or the full faith and credit of the unit of local government is
pledged; however, a tax for the payment of interest or

principal on those bonds shall be made only after the
governing body of the unit of local government finds that all
other sources for payment are insufficient to make those
payments; (f) made for payments under a building commission
lease when the lease payments are for the retirement of bonds
issued by the commission before March 1, 1995 to pay for the
building project; (g) made for payments due under installment
contracts entered into before March 1, 1995; (h) made for
payments of principal and interest on bonds issued under the
Metropolitan Water Reclamation District Act to finance
construction projects initiated before October 1, 1991; (h-4)
made for stormwater management purposes by the Metropolitan
Water Reclamation District of Greater Chicago under Section 12
of the Metropolitan Water Reclamation District Act; (h-8) made
for payments of principal and interest on bonds issued under
Section 9.6a of the Metropolitan Water Reclamation District
Act to make contributions to the pension fund established
under Article 13 of the Illinois Pension Code; (i) made for
payments of principal and interest on limited bonds, as
defined in Section 3 of the Local Government Debt Reform Act,
in an amount not to exceed the debt service extension base less
the amount in items (b), (c), and (e) of this definition for
non-referendum obligations, except obligations initially
issued pursuant to referendum and bonds described in
subsections (h) and (h-8) of this definition; (j) made for
payments of principal and interest on bonds issued under

Section 15 of the Local Government Debt Reform Act; (k) made
for payments of principal and interest on bonds authorized by
Public Act 88-503 and issued under Section 20a of the Chicago
Park District Act for aquarium or museum projects and bonds
issued under Section 20a of the Chicago Park District Act for
the purpose of making contributions to the pension fund
established under Article 12 of the Illinois Pension Code; (l)
made for payments of principal and interest on bonds
authorized by Public Act 87-1191 or 93-601 and (i) issued
pursuant to Section 21.2 of the Cook County Forest Preserve
District Act, (ii) issued under Section 42 of the Cook County
Forest Preserve District Act for zoological park projects, or
(iii) issued under Section 44.1 of the Cook County Forest
Preserve District Act for botanical gardens projects; (m) made
pursuant to Section 34-53.5 of the School Code, whether levied
annually or not; (n) made to fund expenses of providing joint
recreational programs for persons with disabilities under
Section 5-8 of the Park District Code or Section 11-95-14 of
the Illinois Municipal Code; (o) made by the Chicago Park
District for recreational programs for persons with
disabilities under subsection (c) of Section 7.06 of the
Chicago Park District Act; (p) made for contributions to a
firefighter's pension fund created under Article 4 of the
Illinois Pension Code, to the extent of the amount certified
under item (5) of Section 4-134 of the Illinois Pension Code;
(q) made by Ford Heights School District 169 under Section

17-9.02 of the School Code; and (r) made for the purpose of
making employer contributions to the Public School Teachers'
Pension and Retirement Fund of Chicago under Section 34-53 of
the School Code; and (s) made under Section 4 of the Community
Mental Health Act to provide the necessary funds or to
supplement existing funds for community mental health
facilities and services, including facilities and services for
the person with a developmental disability or a substance use
disorder.
"Aggregate extension" for all taxing districts to which
this Law applies in accordance with Section 18-213, except for
those taxing districts subject to paragraph (2) of subsection
(e) of Section 18-213, means the annual corporate extension
for the taxing district and those special purpose extensions
that are made annually for the taxing district, excluding
special purpose extensions: (a) made for the taxing district
to pay interest or principal on general obligation bonds that
were approved by referendum; (b) made for any taxing district
to pay interest or principal on general obligation bonds
issued before the date on which the referendum making this Law
applicable to the taxing district is held; (c) made for any
taxing district to pay interest or principal on bonds issued
to refund or continue to refund those bonds issued before the
date on which the referendum making this Law applicable to the
taxing district is held; (d) made for any taxing district to
pay interest or principal on bonds issued to refund or

continue to refund bonds issued after the date on which the
referendum making this Law applicable to the taxing district
is held if the bonds were approved by referendum after the date
on which the referendum making this Law applicable to the
taxing district is held; (e) made for any taxing district to
pay interest or principal on revenue bonds issued before the
date on which the referendum making this Law applicable to the
taxing district is held for payment of which a property tax
levy or the full faith and credit of the unit of local
government is pledged; however, a tax for the payment of
interest or principal on those bonds shall be made only after
the governing body of the unit of local government finds that
all other sources for payment are insufficient to make those
payments; (f) made for payments under a building commission
lease when the lease payments are for the retirement of bonds
issued by the commission before the date on which the
referendum making this Law applicable to the taxing district
is held to pay for the building project; (g) made for payments
due under installment contracts entered into before the date
on which the referendum making this Law applicable to the
taxing district is held; (h) made for payments of principal
and interest on limited bonds, as defined in Section 3 of the
Local Government Debt Reform Act, in an amount not to exceed
the debt service extension base less the amount in items (b),
(c), and (e) of this definition for non-referendum
obligations, except obligations initially issued pursuant to

referendum; (i) made for payments of principal and interest on
bonds issued under Section 15 of the Local Government Debt
Reform Act; (j) made for a qualified airport authority to pay
interest or principal on general obligation bonds issued for
the purpose of paying obligations due under, or financing
airport facilities required to be acquired, constructed,
installed or equipped pursuant to, contracts entered into
before March 1, 1996 (but not including any amendments to such
a contract taking effect on or after that date); (k) made to
fund expenses of providing joint recreational programs for
persons with disabilities under Section 5-8 of the Park
District Code or Section 11-95-14 of the Illinois Municipal
Code; (l) made for contributions to a firefighter's pension
fund created under Article 4 of the Illinois Pension Code, to
the extent of the amount certified under item (5) of Section
4-134 of the Illinois Pension Code; and (m) made for the taxing
district to pay interest or principal on general obligation
bonds issued pursuant to Section 19-3.10 of the School Code;
and (n) made under Section 4 of the Community Mental Health Act
to provide the necessary funds or to supplement existing funds
for community mental health facilities and services, including
facilities and services for the person with a developmental
disability or a substance use disorder.
"Aggregate extension" for all taxing districts to which
this Law applies in accordance with paragraph (2) of
subsection (e) of Section 18-213 means the annual corporate

extension for the taxing district and those special purpose
extensions that are made annually for the taxing district,
excluding special purpose extensions: (a) made for the taxing
district to pay interest or principal on general obligation
bonds that were approved by referendum; (b) made for any
taxing district to pay interest or principal on general
obligation bonds issued before March 7, 1997 (the effective
date of Public Act 89-718); (c) made for any taxing district to
pay interest or principal on bonds issued to refund or
continue to refund those bonds issued before March 7, 1997
(the effective date of Public Act 89-718); (d) made for any
taxing district to pay interest or principal on bonds issued
to refund or continue to refund bonds issued after March 7,
1997 (the effective date of Public Act 89-718) if the bonds
were approved by referendum after March 7, 1997 (the effective
date of Public Act 89-718); (e) made for any taxing district to
pay interest or principal on revenue bonds issued before March
7, 1997 (the effective date of Public Act 89-718) for payment
of which a property tax levy or the full faith and credit of
the unit of local government is pledged; however, a tax for the
payment of interest or principal on those bonds shall be made
only after the governing body of the unit of local government
finds that all other sources for payment are insufficient to
make those payments; (f) made for payments under a building
commission lease when the lease payments are for the
retirement of bonds issued by the commission before March 7,

1997 (the effective date of Public Act 89-718) to pay for the
building project; (g) made for payments due under installment
contracts entered into before March 7, 1997 (the effective
date of Public Act 89-718); (h) made for payments of principal
and interest on limited bonds, as defined in Section 3 of the
Local Government Debt Reform Act, in an amount not to exceed
the debt service extension base less the amount in items (b),
(c), and (e) of this definition for non-referendum
obligations, except obligations initially issued pursuant to
referendum; (i) made for payments of principal and interest on
bonds issued under Section 15 of the Local Government Debt
Reform Act; (j) made for a qualified airport authority to pay
interest or principal on general obligation bonds issued for
the purpose of paying obligations due under, or financing
airport facilities required to be acquired, constructed,
installed or equipped pursuant to, contracts entered into
before March 1, 1996 (but not including any amendments to such
a contract taking effect on or after that date); (k) made to
fund expenses of providing joint recreational programs for
persons with disabilities under Section 5-8 of the Park
District Code or Section 11-95-14 of the Illinois Municipal
Code; and (l) made for contributions to a firefighter's
pension fund created under Article 4 of the Illinois Pension
Code, to the extent of the amount certified under item (5) of
Section 4-134 of the Illinois Pension Code; and (m) made under
Section 4 of the Community Mental Health Act to provide the

necessary funds or to supplement existing funds for community
mental health facilities and services, including facilities
and services for the person with a developmental disability or
a substance use disorder.
"Debt service extension base" means an amount equal to
that portion of the extension for a taxing district for the
1994 levy year, or for those taxing districts subject to this
Law in accordance with Section 18-213, except for those
subject to paragraph (2) of subsection (e) of Section 18-213,
for the levy year in which the referendum making this Law
applicable to the taxing district is held, or for those taxing
districts subject to this Law in accordance with paragraph (2)
of subsection (e) of Section 18-213 for the 1996 levy year,
constituting an extension for payment of principal and
interest on bonds issued by the taxing district without
referendum, but not including excluded non-referendum bonds.
For park districts (i) that were first subject to this Law in
1991 or 1995 and (ii) whose extension for the 1994 levy year
for the payment of principal and interest on bonds issued by
the park district without referendum (but not including
excluded non-referendum bonds) was less than 51% of the amount
for the 1991 levy year constituting an extension for payment
of principal and interest on bonds issued by the park district
without referendum (but not including excluded non-referendum
bonds), "debt service extension base" means an amount equal to
that portion of the extension for the 1991 levy year

constituting an extension for payment of principal and
interest on bonds issued by the park district without
referendum (but not including excluded non-referendum bonds).
A debt service extension base established or increased at any
time pursuant to any provision of this Law, except Section
18-212, shall be increased each year commencing with the later
of (i) the 2009 levy year or (ii) the first levy year in which
this Law becomes applicable to the taxing district, by the
lesser of 5% or the percentage increase in the Consumer Price
Index during the 12-month calendar year preceding the levy
year. The debt service extension base may be established or
increased as provided under Section 18-212. "Excluded
non-referendum bonds" means (i) bonds authorized by Public Act
88-503 and issued under Section 20a of the Chicago Park
District Act for aquarium and museum projects; (ii) bonds
issued under Section 15 of the Local Government Debt Reform
Act; or (iii) refunding obligations issued to refund or to
continue to refund obligations initially issued pursuant to
referendum.
"Special purpose extensions" include, but are not limited
to, extensions for levies made on an annual basis for
unemployment and workers' compensation, self-insurance,
contributions to pension plans, and extensions made pursuant
to Section 6-601 of the Illinois Highway Code for a road
district's permanent road fund whether levied annually or not.
The extension for a special service area is not included in the

aggregate extension.
"Aggregate extension base" means the taxing district's
last preceding aggregate extension as adjusted under Sections
18-135, 18-215, 18-230, 18-206, and 18-233. Beginning with
levy year 2022, for taxing districts that are specified in
Section 18-190.7, the taxing district's aggregate extension
base shall be calculated as provided in Section 18-190.7. An
adjustment under Section 18-135 shall be made for the 2007
levy year and all subsequent levy years whenever one or more
counties within which a taxing district is located (i) used
estimated valuations or rates when extending taxes in the
taxing district for the last preceding levy year that resulted
in the over or under extension of taxes, or (ii) increased or
decreased the tax extension for the last preceding levy year
as required by Section 18-135(c). Whenever an adjustment is
required under Section 18-135, the aggregate extension base of
the taxing district shall be equal to the amount that the
aggregate extension of the taxing district would have been for
the last preceding levy year if either or both (i) actual,
rather than estimated, valuations or rates had been used to
calculate the extension of taxes for the last levy year, or
(ii) the tax extension for the last preceding levy year had not
been adjusted as required by subsection (c) of Section 18-135.
Notwithstanding any other provision of law, for levy year
2012, the aggregate extension base for West Northfield School
District No. 31 in Cook County shall be $12,654,592.

Notwithstanding any other provision of law, for levy year
2022, the aggregate extension base of a home equity assurance
program that levied at least $1,000,000 in property taxes in
levy year 2019 or 2020 under the Home Equity Assurance Act
shall be the amount that the program's aggregate extension
base for levy year 2021 would have been if the program had
levied a property tax for levy year 2021.
"Levy year" has the same meaning as "year" under Section
1-155.
"New property" means (i) the assessed value, after final
board of review or board of appeals action, of new
improvements or additions to existing improvements on any
parcel of real property that increase the assessed value of
that real property during the levy year multiplied by the
equalization factor issued by the Department under Section
17-30, (ii) the assessed value, after final board of review or
board of appeals action, of real property not exempt from real
estate taxation, which real property was exempt from real
estate taxation for any portion of the immediately preceding
levy year, multiplied by the equalization factor issued by the
Department under Section 17-30, including the assessed value,
upon final stabilization of occupancy after new construction
is complete, of any real property located within the
boundaries of an otherwise or previously exempt military
reservation that is intended for residential use and owned by
or leased to a private corporation or other entity, (iii) in

counties that classify in accordance with Section 4 of Article
IX of the Illinois Constitution, an incentive property's
additional assessed value resulting from a scheduled increase
in the level of assessment as applied to the first year final
board of review market value, and (iv) any increase in
assessed value due to oil or gas production from an oil or gas
well required to be permitted under the Hydraulic Fracturing
Regulatory Act that was not produced in or accounted for
during the previous levy year. In addition, the county clerk
in a county containing a population of 3,000,000 or more shall
include in the 1997 recovered tax increment value for any
school district, any recovered tax increment value that was
applicable to the 1995 tax year calculations.
"Qualified airport authority" means an airport authority
organized under the Airport Authorities Act and located in a
county bordering on the State of Wisconsin and having a
population in excess of 200,000 and not greater than 500,000.
"Recovered tax increment value" means, except as otherwise
provided in this paragraph, the amount of the current year's
equalized assessed value, in the first year after a
municipality terminates the designation of an area as a
redevelopment project area previously established under the
Tax Increment Allocation Redevelopment Act in the Illinois
Municipal Code, previously established under the Industrial
Jobs Recovery Law in the Illinois Municipal Code, previously
established under the Economic Development Project Area Tax

Increment Act of 1995, or previously established under the
Economic Development Area Tax Increment Allocation Act, of
each taxable lot, block, tract, or parcel of real property in
the redevelopment project area over and above the initial
equalized assessed value of each property in the redevelopment
project area. For the taxes which are extended for the 1997
levy year, the recovered tax increment value for a non-home
rule taxing district that first became subject to this Law for
the 1995 levy year because a majority of its 1994 equalized
assessed value was in an affected county or counties shall be
increased if a municipality terminated the designation of an
area in 1993 as a redevelopment project area previously
established under the Tax Increment Allocation Redevelopment
Act in the Illinois Municipal Code, previously established
under the Industrial Jobs Recovery Law in the Illinois
Municipal Code, or previously established under the Economic
Development Area Tax Increment Allocation Act, by an amount
equal to the 1994 equalized assessed value of each taxable
lot, block, tract, or parcel of real property in the
redevelopment project area over and above the initial
equalized assessed value of each property in the redevelopment
project area. In the first year after a municipality removes a
taxable lot, block, tract, or parcel of real property from a
redevelopment project area established under the Tax Increment
Allocation Redevelopment Act in the Illinois Municipal Code,
the Industrial Jobs Recovery Law in the Illinois Municipal

Code, or the Economic Development Area Tax Increment
Allocation Act, "recovered tax increment value" means the
amount of the current year's equalized assessed value of each
taxable lot, block, tract, or parcel of real property removed
from the redevelopment project area over and above the initial
equalized assessed value of that real property before removal
from the redevelopment project area.
Except as otherwise provided in this Section, "limiting
rate" means a fraction the numerator of which is the last
preceding aggregate extension base times an amount equal to
one plus the extension limitation defined in this Section and
the denominator of which is the current year's equalized
assessed value of all real property in the territory under the
jurisdiction of the taxing district during the prior levy
year. For those taxing districts that reduced their aggregate
extension for the last preceding levy year, except for school
districts that reduced their extension for educational
purposes pursuant to Section 18-206, the highest aggregate
extension in any of the last 3 preceding levy years shall be
used for the purpose of computing the limiting rate. The
denominator shall not include new property or the recovered
tax increment value. If a new rate, a rate decrease, or a
limiting rate increase has been approved at an election held
after March 21, 2006, then (i) the otherwise applicable
limiting rate shall be increased by the amount of the new rate
or shall be reduced by the amount of the rate decrease, as the

case may be, or (ii) in the case of a limiting rate increase,
the limiting rate shall be equal to the rate set forth in the
proposition approved by the voters for each of the years
specified in the proposition, after which the limiting rate of
the taxing district shall be calculated as otherwise provided.
In the case of a taxing district that obtained referendum
approval for an increased limiting rate on March 20, 2012, the
limiting rate for tax year 2012 shall be the rate that
generates the approximate total amount of taxes extendable for
that tax year, as set forth in the proposition approved by the
voters; this rate shall be the final rate applied by the county
clerk for the aggregate of all capped funds of the district for
tax year 2012.
(Source: P.A. 102-263, eff. 8-6-21; 102-311, eff. 8-6-21;
102-519, eff. 8-20-21; 102-558, eff. 8-20-21; 102-707, eff.
4-22-22; 102-813, eff. 5-13-22; 102-895, eff. 5-23-22;
103-154, eff. 6-30-23.)
Section 175-10. The Community Mental Health Act is amended
by changing Sections 3a, 3b, 3e, 3f, 4, 5, 6, and 7 as follows:
(405 ILCS 20/3a) (from Ch. 91 1/2, par. 303a)
Sec. 3a. Every governmental unit authorized to levy an
annual tax under any of the provisions of this Act shall,
before it may levy such tax, establish a 7 member community
mental health board who shall administer this Act. Such board

shall be appointed by the chairman of the governing body of a
county, the mayor of a city, the president of a village, the
president of an incorporated town, or the supervisor of a
township, as the case may be, with the advice and consent of
the governing body of such county, city, village, incorporated
town or the town board of trustees of any township, except in
any county with a county executive form of government, if
applicable, the county executive shall appoint the board with
the advice and consent of the county board. Members of the
community mental health board shall be residents of the
government unit and, as nearly as possible, be representative
of interested groups of the community such as local health
departments, medical societies, local comprehensive health
planning agencies, hospital boards, lay associations concerned
with mental health, developmental disabilities and substance
abuse, and individuals with professional or lived expertise in
mental health, developmental disabilities, and substance abuse
as well as the general public. General public representation
may also be considered for appointment when there are gaps in
board duties and qualifications that cannot be filled from the
above stated categories. Only one member shall be a member of
the governing body, with the term of membership on the board to
run concurrently with the elected term of the member. The
chairman of the governing body may, upon the request of the
community mental health board, appoint 2 additional members to
the community mental health board. No member of the community

mental health board may be a full-time or part-time employee
of the Department of Human Services or a board member,
employee or any other individual receiving compensation from
any facility or service operating under contract to the board.
If a successful referendum is held under Section 5 of this Act,
all members of such board shall be appointed within 60 days
after the local election authority certifies the passage of
the referendum. If a community mental health board has been
established by a county with a population of less than 500,000
and the community mental health board is funded in whole or in
part by a special mental health sales tax described in
paragraph (4) of subsection (a) of Section 5-1006.5 of the
Counties Code, the largest municipality in the county with at
least 125,000 residents may appoint 2 additional members to
the board. The members shall be appointed by the mayor of the
municipality with the advice and consent of the municipality's
governing body.
Home rule units are exempt from this Act. However, they
may, by ordinance, adopt the provisions of this Act, or any
portion thereof, that they may deem advisable.
The tax rate set forth in Section 4 may be levied by any
non-home rule unit only pursuant to the approval by the voters
at a referendum. Such referendum may have been held at any time
subsequent to the effective date of the Community Mental
Health Act.
(Source: P.A. 103-274, eff. 1-1-24; 103-565, eff. 11-17-23.)

(405 ILCS 20/3b) (from Ch. 91 1/2, par. 303b)
Sec. 3b. The term of office of each member of the community
mental health board shall be for 4 years, provided, however,
that of the members first appointed, 2 shall be appointed for a
term of 2 years, 2 for a term of 3 years and 3 for a term of 4
years. All terms shall be measured from the first day of the
month of appointment. Vacancies shall be filled for the
unexpired term in the same manner as original appointments. A
community mental health board may provide advice to the
governing body and may establish a policy and procedure for
the acceptance and review of applications from interested
residents prior to making a recommendation to the appointing
authority.
(Source: P.A. 103-274, eff. 1-1-24.)
(405 ILCS 20/3e) (from Ch. 91 1/2, par. 303e)
Sec. 3e. Board's powers and duties.
(1) Every community mental health board shall, within 30
days after members are first appointed and within 30 days
after members are appointed or reappointed upon the expiration
of a member's term, meet and organize, by the election of one
of its number as president and one as secretary and such other
officers as it may deem necessary. It shall make rules and
regulations concerning the rendition or operation of services
and facilities which it directs, supervises or funds, not

inconsistent with the provisions of this Act. It shall:
(a) Hold a meeting prior to July 1 of each year at
which officers shall be elected for the ensuing year
beginning July 1. If the community mental health board has
already held or scheduled an election to take place prior
to July 1, an additional election is not required on the
basis of the appointment or reappointment of a member to
the community mental health board;
(b) Hold meetings at least quarterly;
(c) Hold special meetings upon a written request
signed by at least 2 members and filed with the secretary;
(d) Review and evaluate community mental health
services and facilities, including services and facilities
for the treatment of alcoholism, drug addiction,
developmental disabilities, and intellectual
disabilities;
(e) Authorize the disbursement of money from the
community mental health fund for payment for the ordinary
and contingent expenses of the board;
(f) Submit to the appointing officer and the members
of the governing body a written plan for a program of
community mental health services and facilities for
persons with a mental illness, a developmental disability,
or a substance use disorder. Such plan shall be for the
ensuing 12 month period. In addition, a plan shall be
developed for the ensuing 3 year period and such plan

shall be reviewed at the end of every 12 month period and
shall be modified as deemed advisable; .
(g) Within amounts appropriated therefor, execute such
programs and maintain such services and facilities as may
be authorized under such appropriations, including amounts
appropriated under bond issues, if any;
(h) Publish the annual budget and report within 180
120 days after the end of the fiscal year in a newspaper
distributed within the jurisdiction of the board, or, if
no newspaper is published within the jurisdiction of the
board, then one published in the county, or, if no
newspaper is published in the county, then in a newspaper
having general circulation within the jurisdiction of the
board. The report shall show the condition of its trust of
that year, the sums of money received from all sources,
giving the name of any donor, how all monies have been
expended and for what purpose, and such other statistics
and program information in regard to the work of the board
as it may deem of general interest. A copy of the budget
and the annual report shall be made available to the
Department of Human Services and to members of the General
Assembly whose districts include any part of the
jurisdiction of such board. The names of all employees,
consultants, and other personnel shall be set forth along
with the amounts of money received;
(i) Consult with other appropriate private and public

agencies in the development of local plans for the most
efficient delivery of mental health, developmental
disabilities, and substance use disorder services. The
Board is authorized to join and to participate in the
activities of associations organized for the purpose of
promoting more efficient and effective services and
programs;
(j) Have the authority to review and comment on all
applications for grants by any person, corporation, or
governmental unit providing services within the
geographical area of the board which provides mental
health facilities and services, including services for the
person with a mental illness, a developmental disability,
or a substance use disorder. The board may require funding
applicants to send a copy of their funding application to
the board at the time such application is submitted to the
Department of Human Services or to any other local, State
or federal funding source or governmental agency. Within
60 days of the receipt of any application, the board shall
submit its review and comments to the Department of Human
Services or to any other appropriate local, State or
federal funding source or governmental agency. A copy of
the review and comments shall be submitted to the funding
applicant. Within 60 days thereafter, the Department of
Human Services or any other appropriate local or State
governmental agency shall issue a written response to the

board and the funding applicant. The Department of Human
Services or any other appropriate local or State
governmental agency shall supply any community mental
health board such information about purchase-of-care
funds, State facility utilization, and costs in its
geographical area as the board may request provided that
the information requested is for the purpose of the
Community Mental Health Board complying with the
requirements of Section 3f, subsection (f) of this Act;
(k) Perform such other acts as may be necessary or
proper to carry out the purposes of this Act.
(2) The community mental health board has the following
powers:
(a) The board may enter into multiple-year contracts
for rendition or operation of services, facilities and
educational programs.
(b) The board may arrange through intergovernmental
agreements or intragovernmental agreements or both for the
rendition of services and operation of facilities by other
agencies or departments of the governmental unit or county
in which the governmental unit is located with the
approval of the governing body.
(c) To employ, establish compensation for, and set
policies for its personnel, including legal counsel, as
may be necessary to carry out the purposes of this Act and
prescribe the duties thereof. The board may enter into

multiple-year employment contracts as may be necessary for
the recruitment and retention of personnel and the proper
functioning of the board.
(d) The board may enter into multiple-year joint
agreements, which shall be written, with other mental
health boards and boards of health to provide jointly
agreed upon community mental health facilities and
services and to pool such funds as may be deemed necessary
and available for this purpose.
(e) The board may organize a not-for-profit
corporation for the purpose of providing direct recipient
services. Such corporations shall have, in addition to all
other lawful powers, the power to contract with persons to
furnish services for recipients of the corporation's
facilities, including psychiatrists and other physicians
licensed in this State to practice medicine in all of its
branches. Such physicians shall be considered independent
contractors, and liability for any malpractice shall not
extend to such corporation, nor to the community mental
health board, except for gross negligence in entering into
such a contract.
(f) The board shall not operate any direct recipient
services for more than a 2-year period when such services
are being provided in the governmental unit, but shall
encourage, by financial support, the development of
private agencies to deliver such needed services, pursuant

to regulations of the board.
(g) Where there are multiple boards within the same
planning area, as established by the Department of Human
Services, services may be purchased through a single
delivery system. In such areas, a coordinating body with
representation from each board shall be established to
carry out the service functions of this Act. In the event
any such coordinating body purchases or improves real
property, such body shall first obtain the approval of the
governing bodies of the governmental units in which the
coordinating body is located.
(h) The board may enter into multiple-year joint
agreements with other governmental units located within
the geographical area of the board. Such agreements shall
be written and shall provide for the rendition of services
by the board to the residents of such governmental units.
(i) The board may enter into multiple-year joint
agreements with federal, State, and local governments,
including the Department of Human Services or any other
appropriate local or State governmental agency, whereby
the board will provide certain services. All such joint
agreements must provide for the exchange of relevant data.
However, nothing in this Act shall be construed to permit
the abridgement of the confidentiality of patient records.
(j) The board may receive gifts from private sources
for purposes not inconsistent with the provisions of this

Act.
(k) The board may receive federal Federal, State, and
local funds for purposes not inconsistent with the
provisions of this Act.
(l) The board may establish scholarship programs. Such
programs shall require equivalent service or reimbursement
pursuant to regulations of the board.
(m) The board may sell, rent, or lease real property
for purposes consistent with this Act.
(n) The board may: (i) own real property, lease real
property as lessee, or acquire real property by purchase,
construction, lease-purchase agreement, or otherwise; (ii)
take title to the property in the board's name; (iii)
borrow money and issue debt instruments, mortgages,
purchase-money mortgages, and other security instruments
with respect to the property; and (iv) maintain, repair,
remodel, or improve the property. All of these activities
must be for purposes consistent with this Act as may be
reasonably necessary for the housing and proper
functioning of the board. The board may use moneys in the
Community Mental Health Fund for these purposes.
(o) The board may organize a not-for-profit
corporation (i) for the purpose of raising money to be
distributed by the board for providing community mental
health services and facilities for the treatment of
alcoholism, drug addiction, developmental disabilities,

and intellectual disabilities or (ii) for other purposes
not inconsistent with this Act.
(p) The board may fix a fiscal year for the board.
(q) The board has the responsibility to set, maintain,
and implement the budget.
(r) The board may establish professional incentive
programs for the purposes of workforce development and
retention that may include education assistance, student
loan repayment, professional certification and licensure
assistance, and internship stipends.
Every board shall be subject to the requirements under the
Freedom of Information Act and the Open Meetings Act.
(Source: P.A. 103-274, eff. 1-1-24; revised 1-20-24.)
(405 ILCS 20/3f) (from Ch. 91 1/2, par. 303f)
Sec. 3f. Annually, each community mental health board
shall prepare and submit, for informational purposes in the
appropriations process, to the appointing officer and
governing body referred to in Section 3a: (a) an annual budget
showing the estimated receipts and intended disbursements
pursuant to this Act for the fiscal year immediately following
the date the budget is submitted, which date must be at least
30 days prior to the start of the fiscal year, and (b) an
annual report detailing the income received and disbursements
made pursuant to this Act during the fiscal year just
preceding the date the annual report is submitted, which date

must be within 180 90 days of the end close of that fiscal
year. Such report shall also include those matters set forth
in Section 8 of this Act.
(Source: P.A. 95-336, eff. 8-21-07.)
(405 ILCS 20/4) (from Ch. 91 1/2, par. 304)
Sec. 4. In order to provide the necessary funds or to
supplement existing funds for such community mental health
facilities and services, including facilities and services for
the person with a developmental disability or a substance use
disorder, the governing body of any governmental unit, subject
to the provisions of Section 5, may levy an annual tax of not
to exceed .15% upon all of the taxable property in such
governmental unit at the value thereof, as equalized or
assessed by the Department of Revenue. Such tax shall be
levied and collected in the same manner as other governmental
unit taxes, but shall not be included in any limitation
otherwise prescribed as to the rate or amount of governmental
unit taxes, but shall be in addition thereto and in excess
thereof.
An annual tax levied by any governmental unit under this
Section is separate and distinct from all other property taxes
levied by that governmental unit and (1) shall not be
considered an increase for purposes of the application of the
Truth in Taxation Law and its requirements and (2) shall not be
subject to the Property Tax Extension Limitation Law.

When collected, such tax shall be paid into a special fund
to be designated as the "Community Mental Health Fund" which
shall, upon authorization by the appropriate governmental
unit, be administered by the community mental health board and
used only for the purposes specified in this Act. Nothing
contained herein shall in any way preclude the use of other
funds available for such purposes under any existing Federal,
State or local statute. Interest earned from moneys deposited
in this Fund shall only be used for purposes which are
authorized by this Act.
In any city, village, incorporated town, or township which
levies a tax for the purpose of providing community mental
health facilities and services and part or all of such city,
village, incorporated town, or township is in a county or
township, as the case may be, which levies a tax to provide
community mental health facilities and services under the
provisions of this Act, such county or township, as the case
may be, shall pay to such city, village, incorporated town, or
township, as the case may be, the entire amount collected from
taxes under this Section on property subject to a tax which any
city, village, incorporated town, or township thereof levies
to provide community mental health facilities and services.
Whenever any city, village, incorporated town, or township
receives any payments from a county or township as provided
above, such city, village, incorporated town, or township
shall reduce and abate from the tax levied by the authority of

this Section a rate which would produce an amount equal to the
amount received from such county or township.
(Source: P.A. 95-336, eff. 8-21-07.)
(405 ILCS 20/5) (from Ch. 91 1/2, par. 305)
Sec. 5. (a) When the governing body of a governmental unit
passes a resolution as provided in Section 4 asking that an
annual tax may be levied for the purpose of providing such
mental health facilities and services, including facilities
and services for the person with a developmental disability or
a substance use disorder, in the community and so instructs
the clerk of the governmental unit such clerk shall certify
the proposition to the proper election officials for
submission at a regular election in accordance with the
general election law. The proposition shall be in
substantially the following form:
----------------------------
Shall............ (governmental
unit) levy an annual tax
not to exceed of (no not YES
more than .15%) for the purpose
of providing community mental
health facilities and --------------------------------
services including facilities
and services for persons with
a developmental disability or a NO

substance use disorder?
-------------------------------------------------------------
(a-5) In addition, the ballot for any proposition
submitted pursuant to this Section shall have printed thereon,
but not as part of the proposition submitted, only the
following supplemental information (which shall be supplied to
the election authority by the taxing district) in
substantially the following form:
(1) The approximate amount of taxes extendable at the
most recently extended limiting rate is $...., and the
approximate amount of taxes extendable if the proposition
is approved is $....
(2) For the .... (insert the first levy year for which
the new rate or increase limiting rate will be applicable)
levy year the approximate amount of the additional tax
extendable against property containing a single family
residence and having a fair market value at the time of the
referendum of $100,000 is estimated to be $....
If a proposition contains the language in substantially
the form provided above the referendum is valid
notwithstanding any other provision of the law. If the
governmental unit is also subject to the Property Tax
Extension Limitation Law, then the proposition shall also
comply with the Property Tax Extension Limitation Law.
Notwithstanding any provision of this subsection, any
referendum imposing an annual tax on or after January 1, 1994

and prior to the effective date of this amendatory Act of the
103rd General Assembly that complies with subsection (a) is
hereby validated.
(b) If a majority of all the votes cast upon the
proposition are for the levy of such tax, the governing body of
such governmental unit shall thereafter annually levy a tax
not to exceed the rate set forth in Section 4. Thereafter, the
governing body shall in the annual appropriation bill
appropriate from such funds such sum or sums of money as may be
deemed necessary by the community mental health board, based
upon the community mental health board's budget, the board's
annual mental health report, and the local mental health plan
to defray necessary expenses and liabilities in providing for
such community mental health facilities and services.
(c) If the governing body of a governmental unit levies a
tax under Section 4 of this Act and the rate specified in the
proposition under subsection (a) of this Section is less than
0.15%, then the governing body of the governmental unit may,
upon referendum approval, increase that rate to not more than
0.15%. The governing body shall instruct the clerk of the
governmental unit to certify the proposition to the proper
election officials for submission at a regular election in
accordance with the general election law. The proposition
shall be in the following form:
"Shall the tax imposed by (governmental unit) for the
purpose of providing community mental health facilities

and services, including facilities and services for
persons with a developmental disability or substance use
disorder be increased to (not more than 0.15%)?"
If a majority of all the votes cast upon the proposition
are for the increase of the tax, then the governing body of the
governmental unit may thereafter annually levy a tax not to
exceed the rate set forth in the referendum question. Nothing
in this Section prevents a governmental unit from levying less
than the amount approved by the voters via referendum in any
given year or varying the amount levied from year to year as
approved by the governmental unit.
(Source: P.A. 102-839, eff. 5-13-22; 102-935, eff. 7-1-22;
103-154, eff. 6-30-23; 103-274, eff. 1-1-24; 103-565, eff.
11-17-23.)
(405 ILCS 20/6) (from Ch. 91 1/2, par. 306)
Sec. 6. Whenever the governing body of any governmental
unit has not provided the community mental health facilities
and services provided in Section 2 and levied the tax provided
in Section 4 and a petition signed by electors of the
governmental unit equal in number to at least 10% of the total
votes cast for the office which received the greatest total
number of votes at the last preceding general governmental
unit election is presented to the clerk of the governmental
unit requesting the establishment and maintenance of such
community mental health facilities and services, including

facilities and services for the person with a developmental
disability or a substance use disorder, for residents thereof
and the levy of such an annual tax therefor, the governing body
of the governmental unit, subject to the provisions of Section
7, shall establish and maintain such community mental health
facilities and services and shall levy such an annual tax of
not to exceed .15% upon all of the taxable property in such
governmental unit at the value thereof, as equalized or
assessed by the Department of Revenue. Such tax shall be
levied and collected in the same manner as other governmental
unit taxes, but shall not be included in any limitation
otherwise prescribed as to the rate or amount of governmental
unit taxes, but shall be in addition thereto and in excess
thereof.
An annual tax levied by any governmental unit under this
Section is separate and distinct from all other property taxes
levied by that governmental unit and (1) shall not be
considered an increase for purposes of the application of the
Truth in Taxation Law and its requirements and (2) shall not be
subject to the Property Tax Extension Limitation Law.
When collected, such tax shall be paid into a special fund
to be designated as the "Community Mental Health Fund" which
shall, upon authorization by the appropriate governmental
unit, be administered by the community mental health board and
used only for the purposes specified in this Act. Nothing
contained herein shall in any way preclude the use of other

funds available for such purposes under any existing Federal,
State or local statute. Interest earned from moneys deposited
in this Fund shall only be used for purposes which are
authorized by this Act.
In any city, village, incorporated town, or township which
levies a tax for the purpose of providing community mental
health facilities and services and part or all of such city,
village, incorporated town, or township is in a county or
township, as the case may be, which levies a tax to provide
community mental health facilities and services under the
provisions of this Act, such county or township, as the case
may be, shall pay to such city, village, incorporated town, or
township, as the case may be, the entire amount collected from
taxes under this Section on property subject to a tax which any
city, village, incorporated town, or township thereof levies
to provide community mental health facilities and services.
Whenever any city, village, incorporated town, or township
receives any payments from a county or township as provided
above, such city, village, incorporated town, or township
shall reduce and abate from the tax levied by the authority of
this Section a rate which would produce an amount equal to the
amount received from such county or township.
(Source: P.A. 95-336, eff. 8-21-07.)
(405 ILCS 20/7) (from Ch. 91 1/2, par. 307)
Sec. 7. When the petition provided for in Section 6 is

presented to the clerk of the governmental unit requesting the
establishment and maintenance of such mental health facilities
and services for residents of the community and the levy of
such an annual tax therefor, the clerk of the governmental
unit shall certify to the proper election officials the
proposition for the levy of such tax which shall be submitted
at a regular election in accordance with the general election
law. The proposition shall be in substantially the following
form:
--------------------------------------------------------
Shall....................
(governmental unit) establish and
maintain community mental health YES
facilities and services including
facilities and services for the ----------------------
person with a developmental
disability or a substance NO
use disorder and levy therefor an
annual tax of not to exceed .15%?
-------------------------------------------------------------
In addition to certification of the question, the clerk of
the governmental unit shall prepare and submit to the proper
elected officials the following language which shall have
printed thereon, but not as part of the proposition submitted,
only the following supplemental information (which shall be
supplied to the election authority by the taxing district) in

substantially the following form:
(1) The approximate amount of taxes extendable at the
most recently extended limiting rate is $...., and the
approximate amount of taxes extendable if the proposition
is approved is $....
(2) For the .... (insert the first levy year for which
the new rate or increase limiting rate will be applicable)
levy year the approximate amount of the additional tax
extendable against property containing a single family
residence and having a fair market value at the time of the
referendum of $100,000 is estimated to be $....
If a proposition contains the language in substantially
the form provided in paragraphs (1) and (2), the referendum is
valid notwithstanding any other provision of the law.
If a majority of all the votes cast upon the proposition
are in favor thereof, the governing body of such governmental
unit shall establish and maintain such community mental health
facilities and services and shall annually levy such tax.
Thereafter, the governing body shall in the annual
appropriation bill appropriate from such funds such sum or
sums of money as may be deemed necessary, based upon the
community mental health board's budget, the board's annual
mental health report, and the board's plan to defray necessary
expenses and liabilities in providing for such community
mental health facilities and services.
Nothing in this Section prevents a governmental unit from

levying less than the amount approved by the voters via
referendum in any given year or varying the amount levied from
year to year as approved by the governmental unit.
(Source: P.A. 95-336, eff. 8-21-07.)
Section 175-97. Retroactivity. The changes made by this
Article apply to referenda creating community mental health
boards, including community mental health boards located in
counties that have adopted a county executive form of
government under Division 2-5 of the Counties Code, to levy an
annual tax for the establishment and maintenance of mental
health facilities and services for residents of the community
that were approved or validated on or after January 1, 2020 and
to referenda that are approved on or after the effective date
of this Article.
ARTICLE 999.
Section 999-95. No acceleration or delay. Where this Act
makes changes in a statute that is represented in this Act by
text that is not yet or no longer in effect (for example, a
Section represented by multiple versions), the use of that
text does not accelerate or delay the taking effect of (i) the
changes made by this Act or (ii) provisions derived from any
other Public Act.

Section 999-97. Severability. The provisions of this Act
are severable under Section 1.31 of the Statute on Statutes.