Bill Text: IL HB5225 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, after certain deposits have been made, 0.25% of the remainder of the proceeds shall be deposited into the Partners for Conservation Fund. Effective July 1, 2024.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced) 2024-04-05 - Rule 19(a) / Re-referred to Rules Committee [HB5225 Detail]

Download: Illinois-2023-HB5225-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB5225 Introduced , by Rep. Ann M. Williams SYNOPSIS AS INTRODUCED:
35 ILCS 105/9 from Ch. 120, par. 439.9
35 ILCS 110/9 from Ch. 120, par. 439.39
35 ILCS 115/9 from Ch. 120, par. 439.109
35 ILCS 120/3 from Ch. 120, par. 442
Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that, after certain deposits have been made, 0.25% of the remainder of the proceeds shall be deposited into the Partners for Conservation Fund. Effective July 1, 2024.
LRB103 37315 HLH 67436 b
A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 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. 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

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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

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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

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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

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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.

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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,

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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

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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

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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

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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

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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

HB5225 - 22 - LRB103 37315 HLH 67436 b
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

HB5225 - 23 - LRB103 37315 HLH 67436 b
$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

HB5225 - 24 - LRB103 37315 HLH 67436 b
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

HB5225 - 25 - LRB103 37315 HLH 67436 b
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

HB5225 - 26 - LRB103 37315 HLH 67436 b
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

HB5225 - 27 - LRB103 37315 HLH 67436 b
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

HB5225 - 28 - LRB103 37315 HLH 67436 b
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

HB5225 - 29 - LRB103 37315 HLH 67436 b
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,

HB5225 - 30 - LRB103 37315 HLH 67436 b
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

HB5225 - 31 - LRB103 37315 HLH 67436 b
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

HB5225 - 32 - LRB103 37315 HLH 67436 b
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

HB5225 - 33 - LRB103 37315 HLH 67436 b
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.

HB5225 - 34 - LRB103 37315 HLH 67436 b
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, 0.25% shall be paid into the Partners for
Conservation Fund, 74.75% 75% thereof shall be paid into the
General Revenue Fund in 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.
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.

HB5225 - 35 - LRB103 37315 HLH 67436 b
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 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

HB5225 - 36 - LRB103 37315 HLH 67436 b
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

HB5225 - 37 - LRB103 37315 HLH 67436 b
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

HB5225 - 38 - LRB103 37315 HLH 67436 b
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

HB5225 - 39 - LRB103 37315 HLH 67436 b
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

HB5225 - 40 - LRB103 37315 HLH 67436 b
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.

HB5225 - 41 - LRB103 37315 HLH 67436 b
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

HB5225 - 42 - LRB103 37315 HLH 67436 b
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

HB5225 - 43 - LRB103 37315 HLH 67436 b
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

HB5225 - 44 - LRB103 37315 HLH 67436 b
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

HB5225 - 45 - LRB103 37315 HLH 67436 b
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

HB5225 - 46 - LRB103 37315 HLH 67436 b
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

HB5225 - 47 - LRB103 37315 HLH 67436 b
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

HB5225 - 48 - LRB103 37315 HLH 67436 b
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

HB5225 - 49 - LRB103 37315 HLH 67436 b
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

HB5225 - 50 - LRB103 37315 HLH 67436 b
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.

HB5225 - 51 - LRB103 37315 HLH 67436 b
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.

HB5225 - 52 - LRB103 37315 HLH 67436 b
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

HB5225 - 53 - LRB103 37315 HLH 67436 b
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",

HB5225 - 54 - LRB103 37315 HLH 67436 b
"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

HB5225 - 55 - LRB103 37315 HLH 67436 b
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

HB5225 - 56 - LRB103 37315 HLH 67436 b
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, 0.25% shall be paid into the Partners for
Conservation Fund, 74.75% 75% thereof 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.
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

HB5225 - 57 - LRB103 37315 HLH 67436 b
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 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. 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

HB5225 - 58 - LRB103 37315 HLH 67436 b
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

HB5225 - 59 - LRB103 37315 HLH 67436 b
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

HB5225 - 60 - LRB103 37315 HLH 67436 b
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

HB5225 - 61 - LRB103 37315 HLH 67436 b
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

HB5225 - 62 - LRB103 37315 HLH 67436 b
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

HB5225 - 63 - LRB103 37315 HLH 67436 b
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.

HB5225 - 64 - LRB103 37315 HLH 67436 b
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

HB5225 - 65 - LRB103 37315 HLH 67436 b
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

HB5225 - 66 - LRB103 37315 HLH 67436 b
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.

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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

HB5225 - 68 - LRB103 37315 HLH 67436 b
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

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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

HB5225 - 70 - LRB103 37315 HLH 67436 b
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

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

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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

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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

HB5225 - 74 - LRB103 37315 HLH 67436 b
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034 375,000,000
2035 375,000,000
2036 450,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project

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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

HB5225 - 76 - LRB103 37315 HLH 67436 b
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,

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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

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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,

HB5225 - 79 - LRB103 37315 HLH 67436 b
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

HB5225 - 80 - LRB103 37315 HLH 67436 b
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, 0.25% shall be paid into the Partners for
Conservation Fund, 74.75% 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

HB5225 - 81 - LRB103 37315 HLH 67436 b
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.

HB5225 - 82 - LRB103 37315 HLH 67436 b
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

HB5225 - 83 - LRB103 37315 HLH 67436 b
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 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

HB5225 - 84 - LRB103 37315 HLH 67436 b
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

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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

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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

HB5225 - 87 - LRB103 37315 HLH 67436 b
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,

HB5225 - 88 - LRB103 37315 HLH 67436 b
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

HB5225 - 89 - LRB103 37315 HLH 67436 b
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

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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.

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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

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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

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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

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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.

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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

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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

HB5225 - 97 - LRB103 37315 HLH 67436 b
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling
price; the amount of tax due from the retailer with respect to
such transaction; the amount of tax collected from the
purchaser by the retailer on such transaction (or satisfactory
evidence that such tax is not due in that particular instance,
if that is claimed to be the fact); the place and date of the
sale, a sufficient identification of the property sold, and
such other information as the Department may reasonably
require.
Such transaction reporting return shall be filed not later
than 20 days after the day of delivery of the item that is
being sold, but may be filed by the retailer at any time sooner
than that if he chooses to do so. The transaction reporting
return and tax remittance or proof of exemption from the
Illinois use tax may be transmitted to the Department by way of
the State agency with which, or State officer with whom the
tangible personal property must be titled or registered (if
titling or registration is required) if the Department and
such agency or State officer determine that this procedure
will expedite the processing of applications for title or
registration.
With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the

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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

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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

HB5225 - 100 - LRB103 37315 HLH 67436 b
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

HB5225 - 101 - LRB103 37315 HLH 67436 b
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

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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

HB5225 - 103 - LRB103 37315 HLH 67436 b
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

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the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $10,000
threshold stated above, then such taxpayer may petition the
Department for 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

HB5225 - 105 - LRB103 37315 HLH 67436 b
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

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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

HB5225 - 107 - LRB103 37315 HLH 67436 b
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

HB5225 - 108 - LRB103 37315 HLH 67436 b
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

HB5225 - 109 - LRB103 37315 HLH 67436 b
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

HB5225 - 110 - LRB103 37315 HLH 67436 b
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

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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

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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

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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

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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

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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

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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

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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

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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

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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

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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,

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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

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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,

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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

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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, 0.25% shall be paid into the Partners for
Conservation Fund, 74.75% 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

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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

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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

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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

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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.)