Bill Text: IL SB2201 | 2023-2024 | 103rd General Assembly | Introduced

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Bill Title: Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that the taxes also apply to leases of tangible personal property, other than computer software, property that is subject to the Rental Purchase Agreement Occupation and Use Tax Act, and certain automobiles. Amends the Counties Code, the Illinois Municipal Code, the Civic Center Code, the Flood Prevention District Act, the Local Mass Transit District Act, and the Regional Transportation Authority Act to make changes concerning the taxation of leased property. Effective immediately.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Introduced) 2024-04-05 - Rule 2-10 Committee Deadline Established As May 3, 2024 [SB2201 Detail]

Download: Illinois-2023-SB2201-Introduced.html

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103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 SB2201 Introduced 2/10/2023, by Sen. Donald P. DeWitte SYNOPSIS AS INTRODUCED:
35 ILCS 105/2 from Ch. 120, par. 439.2
35 ILCS 105/3 from Ch. 120, par. 439.3
35 ILCS 120/1 from Ch. 120, par. 440
35 ILCS 120/2 from Ch. 120, par. 441
35 ILCS 120/2c from Ch. 120, par. 441c
35 ILCS 120/6e new
55 ILCS 5/5-1006 from Ch. 34, par. 5-1006
55 ILCS 5/5-1006.5
55 ILCS 5/5-1006.7
65 ILCS 5/8-11-1 from Ch. 24, par. 8-11-1
65 ILCS 5/8-11-1.3 from Ch. 24, par. 8-11-1.3
65 ILCS 5/8-11-6a from Ch. 24, par. 8-11-6a
70 ILCS 200/245-12
70 ILCS 750/25
70 ILCS 3610/5.01 from Ch. 111 2/3, par. 355.01
70 ILCS 3615/4.03 from Ch. 111 2/3, par. 704.03
Amends the Use Tax Act and the Retailers' Occupation Tax Act. Provides that the taxes also apply to leases of tangible personal property, other than computer software, property that is subject to the Rental Purchase Agreement Occupation and Use Tax Act, and certain automobiles. Amends the Counties Code, the Illinois Municipal Code, the Civic Center Code, the Flood Prevention District Act, the Local Mass Transit District Act, and the Regional Transportation Authority Act to make changes concerning the taxation of leased property. Effective immediately.
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A BILL FOR
SB2201 LRB103 28036 HLH 54415 b
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 Sections
2 and 3 as follows:
(35 ILCS 105/2) (from Ch. 120, par. 439.2)
Sec. 2. Definitions.
"Use" means the exercise by any person of any right or
power over tangible personal property incident to the
ownership of that property, except that it does not include
the sale of such property in any form as tangible personal
property in the regular course of business to the extent that
such property is not first subjected to a use for which it was
purchased, and does not include the use of such property by its
owner for demonstration purposes: Provided that the property
purchased is deemed to be purchased for the purpose of resale,
despite first being used, to the extent to which it is resold
as an ingredient of an intentionally produced product or
by-product of manufacturing. "Use" does not mean the
demonstration use or interim use of tangible personal property
by a retailer before he sells that tangible personal property.
For watercraft or aircraft, if the period of demonstration use
or interim use by the retailer exceeds 18 months, the retailer

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shall pay on the retailers' original cost price the tax
imposed by this Act, and no credit for that tax is permitted if
the watercraft or aircraft is subsequently sold by the
retailer. "Use" does not mean the physical incorporation of
tangible personal property, to the extent not first subjected
to a use for which it was purchased, as an ingredient or
constituent, into other tangible personal property (a) which
is sold in the regular course of business or (b) which the
person incorporating such ingredient or constituent therein
has undertaken at the time of such purchase to cause to be
transported in interstate commerce to destinations outside the
State of Illinois: Provided that the property purchased is
deemed to be purchased for the purpose of resale, despite
first being used, to the extent to which it is resold as an
ingredient of an intentionally produced product or by-product
of manufacturing.
"Watercraft" means a Class 2, Class 3, or Class 4
watercraft as defined in Section 3-2 of the Boat Registration
and Safety Act, a personal watercraft, or any boat equipped
with an inboard motor.
"Purchase at retail" means the acquisition of the
ownership of or title to tangible personal property through a
sale at retail.
"Purchaser" means anyone who, through a sale at retail,
acquires the ownership of tangible personal property for a
valuable consideration.

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"Sale at retail" means any transfer of the ownership of or
title to tangible personal property to a purchaser, for the
purpose of use, and not for the purpose of resale in any form
as tangible personal property to the extent not first
subjected to a use for which it was purchased, for a valuable
consideration: Provided that the property purchased is deemed
to be purchased for the purpose of resale, despite first being
used, to the extent to which it is resold as an ingredient of
an intentionally produced product or by-product of
manufacturing. For this purpose, slag produced as an incident
to manufacturing pig iron or steel and sold is considered to be
an intentionally produced by-product of manufacturing. "Sale
at retail" includes any such transfer made for resale unless
made in compliance with Section 2c of the Retailers'
Occupation Tax Act, as incorporated by reference into Section
12 of this Act. Transactions whereby the possession of the
property is transferred but the seller retains the title as
security for payment of the selling price are sales.
"Sale at retail" shall also be construed to include any
Illinois florist's sales transaction in which the purchase
order is received in Illinois by a florist and the sale is for
use or consumption, but the Illinois florist has a florist in
another state deliver the property to the purchaser or the
purchaser's donee in such other state.
Nonreusable tangible personal property that is used by
persons engaged in the business of operating a restaurant,

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cafeteria, or drive-in is a sale for resale when it is
transferred to customers in the ordinary course of business as
part of the sale of food or beverages and is used to deliver,
package, or consume food or beverages, regardless of where
consumption of the food or beverages occurs. Examples of those
items include, but are not limited to nonreusable, paper and
plastic cups, plates, baskets, boxes, sleeves, buckets or
other containers, utensils, straws, placemats, napkins, doggie
bags, and wrapping or packaging materials that are transferred
to customers as part of the sale of food or beverages in the
ordinary course of business.
The purchase, employment and transfer of such tangible
personal property as newsprint and ink for the primary purpose
of conveying news (with or without other information) is not a
purchase, use or sale of tangible personal property.
"Selling price" means the consideration for a sale valued
in money whether received in money or otherwise, including
cash, credits, property other than as hereinafter provided,
and services, but, prior to January 1, 2020 and beginning
again on January 1, 2022, not including the value of or credit
given for traded-in tangible personal property where the item
that is traded-in is of like kind and character as that which
is being sold; beginning January 1, 2020 and until January 1,
2022, "selling price" includes the portion of the value of or
credit given for traded-in motor vehicles of the First
Division as defined in Section 1-146 of the Illinois Vehicle

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Code of like kind and character as that which is being sold
that exceeds $10,000. "Selling price" shall be determined
without any deduction on account of the cost of the property
sold, the cost of materials used, labor or service cost or any
other expense whatsoever, but does not include interest or
finance charges which appear as separate items on the bill of
sale or sales contract nor charges that are added to prices by
sellers on account of the seller's tax liability under the
Retailers' Occupation Tax Act, or on account of the seller's
duty to collect, from the purchaser, the tax that is imposed by
this Act, or, except as otherwise provided with respect to any
cigarette tax imposed by a home rule unit, on account of the
seller's tax liability under any local occupation tax
administered by the Department, or, except as otherwise
provided with respect to any cigarette tax imposed by a home
rule unit on account of the seller's duty to collect, from the
purchasers, the tax that is imposed under any local use tax
administered by the Department. Effective December 1, 1985,
"selling price" shall include charges that are added to prices
by sellers on account of the seller's tax liability under the
Cigarette Tax Act, on account of the seller's duty to collect,
from the purchaser, the tax imposed under the Cigarette Use
Tax Act, and on account of the seller's duty to collect, from
the purchaser, any cigarette tax imposed by a home rule unit.
Notwithstanding any law to the contrary, for any motor
vehicle, as defined in Section 1-146 of the Vehicle Code, that

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is sold on or after January 1, 2015 for the purpose of leasing
the vehicle for a defined period that is longer than one year
and (1) is a motor vehicle of the second division that: (A) is
a self-contained motor vehicle designed or permanently
converted to provide living quarters for recreational,
camping, or travel use, with direct walk through access to the
living quarters from the driver's seat; (B) is of the van
configuration designed for the transportation of not less than
7 nor more than 16 passengers; or (C) has a gross vehicle
weight rating of 8,000 pounds or less or (2) is a motor vehicle
of the first division, and, on and after January 1, 2023, for
any item of tangible personal property, other than computer
software and property subject to the Rental Purchase Agreement
Occupation and Use Tax Act, that the purchaser certifies is
purchased for the purpose of leasing, referred to in this
Section as "leased property", "selling price" or "amount of
sale" means the consideration received by the lessor pursuant
to the motor vehicle lease contract, or oral or written
agreement for other leased property, including amounts due at
lease signing and all monthly or other regular payments
charged over the term of the lease. Also included in the
selling price is any amount received by the lessor from the
lessee for the leased vehicle or other leased property that is
not calculated at the time the lease is executed, including,
but not limited to, excess mileage charges and charges for
excess wear and tear. For sales that occur in Illinois, with

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

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lessee for the leased vehicle or other leased property that is
not calculated at the time the lease is executed; provided
that the discount is only allowed if the return is timely filed
and for amounts timely paid. The "selling price" of a motor
vehicle that is sold on or after January 1, 2015 for the
purpose of leasing for a defined period of longer than one
year, and the "selling price" of other tangible personal
property, other than computer software and property that is
subject to the Rental Purchase Agreement Occupation and Use
Tax Act, that is sold on or after January 1, 2023 for the
purpose of leasing, shall not be reduced by the value of or
credit given for traded-in tangible personal property owned by
the lessor, nor shall it be reduced by the value of or credit
given for traded-in tangible personal property owned by the
lessee, regardless of whether the trade-in value thereof is
assigned by the lessee to the lessor. In the case of a motor
vehicle that is sold for the purpose of leasing for a defined
period of longer than one year, the sale occurs at the time of
the delivery of the vehicle, regardless of the due date of any
lease payments. In the case of other leased property, the sale
occurs upon delivery of the property to the lessor, and tax is
due upon each payment made by a lessee. A lessor who incurs a
Retailers' Occupation Tax liability on the sale of a motor
vehicle coming off lease or the sale of other leased property
may not take a credit against that liability for the Use Tax
the lessor paid upon the purchase of the motor vehicle (or for

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

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

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

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

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

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

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

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

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

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subject to the Rental Purchase Agreement Occupation and Use
Tax Act and any motor vehicle as defined in Section 1-146 of
the Illinois Vehicle Code. Beginning January 1, 2001, prepaid
telephone calling arrangements shall be considered tangible
personal property subject to the tax imposed under this Act
regardless of the form in which those arrangements may be
embodied, transmitted, or fixed by any method now known or
hereafter developed. Purchases of (1) electricity delivered to
customers by wire; (2) natural or artificial gas that is
delivered to customers through pipes, pipelines, or mains; and
(3) water that is delivered to customers through pipes,
pipelines, or mains are not subject to tax under this Act. The
provisions of this amendatory Act of the 98th General Assembly
are declaratory of existing law as to the meaning and scope of
this Act.
(Source: P.A. 98-583, eff. 1-1-14.)
Section 10. The Retailers' Occupation Tax Act is amended
by changing Sections 1, 2, and 2c and by adding Section 6e as
follows:
(35 ILCS 120/1) (from Ch. 120, par. 440)
Sec. 1. Definitions. "Sale at retail" means any transfer
of the ownership of or title to tangible personal property to a
purchaser, for the purpose of use or consumption, and not for
the purpose of resale in any form as tangible personal

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

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defined in this Act: Provided that the property purchased is
deemed to be purchased for the purpose of resale, despite
first being used, to the extent to which it is resold as an
ingredient of an intentionally produced product or byproduct
of manufacturing.
"Sale at retail" shall be construed to include any
Illinois florist's sales transaction in which the purchase
order is received in Illinois by a florist and the sale is for
use or consumption, but the Illinois florist has a florist in
another state deliver the property to the purchaser or the
purchaser's donee in such other state.
Nonreusable tangible personal property that is used by
persons engaged in the business of operating a restaurant,
cafeteria, or drive-in is a sale for resale when it is
transferred to customers in the ordinary course of business as
part of the sale of food or beverages and is used to deliver,
package, or consume food or beverages, regardless of where
consumption of the food or beverages occurs. Examples of those
items include, but are not limited to nonreusable, paper and
plastic cups, plates, baskets, boxes, sleeves, buckets or
other containers, utensils, straws, placemats, napkins, doggie
bags, and wrapping or packaging materials that are transferred
to customers as part of the sale of food or beverages in the
ordinary course of business.
The purchase, employment and transfer of such tangible
personal property as newsprint and ink for the primary purpose

SB2201 - 21 - LRB103 28036 HLH 54415 b
of conveying news (with or without other information) is not a
purchase, use or sale of tangible personal property.
A person whose activities are organized and conducted
primarily as a not-for-profit service enterprise, and who
engages in selling tangible personal property at retail
(whether to the public or merely to members and their guests)
is engaged in the business of selling tangible personal
property at retail with respect to such transactions,
excepting only a person organized and operated exclusively for
charitable, religious or educational purposes either (1), to
the extent of sales by such person to its members, students,
patients or inmates of tangible personal property to be used
primarily for the purposes of such person, or (2), to the
extent of sales by such person of tangible personal property
which is not sold or offered for sale by persons organized for
profit. The selling of school books and school supplies by
schools at retail to students is not "primarily for the
purposes of" the school which does such selling. The
provisions of this paragraph shall not apply to nor subject to
taxation occasional dinners, socials or similar activities of
a person organized and operated exclusively for charitable,
religious or educational purposes, whether or not such
activities are open to the public.
A person who is the recipient of a grant or contract under
Title VII of the Older Americans Act of 1965 (P.L. 92-258) and
serves meals to participants in the federal Nutrition Program

SB2201 - 22 - LRB103 28036 HLH 54415 b
for the Elderly in return for contributions established in
amount by the individual participant pursuant to a schedule of
suggested fees as provided for in the federal Act is not
engaged in the business of selling tangible personal property
at retail with respect to such transactions.
"Purchaser" means anyone who, through a sale at retail,
acquires the ownership of or title to tangible personal
property for a valuable consideration.
"Reseller of motor fuel" means any person engaged in the
business of selling or delivering or transferring title of
motor fuel to another person other than for use or
consumption. No person shall act as a reseller of motor fuel
within this State without first being registered as a reseller
pursuant to Section 2c or a retailer pursuant to Section 2a.
"Selling price" or the "amount of sale" means the
consideration for a sale valued in money whether received in
money or otherwise, including cash, credits, property, other
than as hereinafter provided, and services, but, prior to
January 1, 2020 and beginning again on January 1, 2022, not
including the value of or credit given for traded-in tangible
personal property where the item that is traded-in is of like
kind and character as that which is being sold; beginning
January 1, 2020 and until January 1, 2022, "selling price"
includes the portion of the value of or credit given for
traded-in motor vehicles of the First Division as defined in
Section 1-146 of the Illinois Vehicle Code of like kind and

SB2201 - 23 - LRB103 28036 HLH 54415 b
character as that which is being sold that exceeds $10,000.
"Selling price" shall be determined without any deduction on
account of the cost of the property sold, the cost of materials
used, labor or service cost or any other expense whatsoever,
but does not include charges that are added to prices by
sellers on account of the seller's tax liability under this
Act, or on account of the seller's duty to collect, from the
purchaser, the tax that is imposed by the Use Tax Act, or,
except as otherwise provided with respect to any cigarette tax
imposed by a home rule unit, on account of the seller's tax
liability under any local occupation tax administered by the
Department, or, except as otherwise provided with respect to
any cigarette tax imposed by a home rule unit on account of the
seller's duty to collect, from the purchasers, the tax that is
imposed under any local use tax administered by the
Department. Effective December 1, 1985, "selling price" shall
include charges that are added to prices by sellers on account
of the seller's tax liability under the Cigarette Tax Act, on
account of the sellers' duty to collect, from the purchaser,
the tax imposed under the Cigarette Use Tax Act, and on account
of the seller's duty to collect, from the purchaser, any
cigarette tax imposed by a home rule unit.
Notwithstanding any law to the contrary, for any motor
vehicle, as defined in Section 1-146 of the Vehicle Code, that
is sold on or after January 1, 2015 for the purpose of leasing
the vehicle for a defined period that is longer than one year

SB2201 - 24 - LRB103 28036 HLH 54415 b
and (1) is a motor vehicle of the second division that: (A) is
a self-contained motor vehicle designed or permanently
converted to provide living quarters for recreational,
camping, or travel use, with direct walk through access to the
living quarters from the driver's seat; (B) is of the van
configuration designed for the transportation of not less than
7 nor more than 16 passengers; or (C) has a gross vehicle
weight rating of 8,000 pounds or less or (2) is a motor vehicle
of the first division, and, on and after January 1, 2023, for
any item of tangible personal property, other than computer
software and property subject to the Rental Purchase Agreement
Occupation and Use Tax Act, that the purchaser certifies is
purchased for the purpose of leasing, referred to in this
Section as "leased property", "selling price" or "amount of
sale" means the consideration received by the lessor pursuant
to the motor vehicle lease contract, or oral or written
agreement for other leased property, including amounts due at
lease signing and all monthly or other regular payments
charged over the term of the lease. Also included in the
selling price is any amount received by the lessor from the
lessee for the leased vehicle or other leased property that is
not calculated at the time the lease is executed, including,
but not limited to, excess mileage charges and charges for
excess wear and tear. For sales that occur in Illinois, with
respect to any amount received by the lessor from the lessee
for the leased vehicle or other leased property that is not

SB2201 - 25 - LRB103 28036 HLH 54415 b
calculated at the time the lease is executed, the lessor who
purchased the motor vehicle or other leased property does not
incur the tax imposed by the Use Tax Act on those amounts, and
the retailer who makes the retail sale of the motor vehicle to
the lessor is not required to collect the tax imposed by the
Use Tax Act or to pay the tax imposed by this Act on those
amounts. However, the lessor who purchased the motor vehicle
assumes the liability for reporting and paying the tax on
those amounts directly to the Department in the same form
(Illinois Retailers' Occupation Tax, and local retailers'
occupation taxes, if applicable) in which the retailer would
have reported and paid such tax if the retailer had accounted
for the tax to the Department. For amounts received by the
lessor from the lessee that are not calculated at the time the
lease is executed, the lessor must file the return and pay the
tax to the Department by the due date otherwise required by
this Act for returns other than transaction returns. If the
retailer is entitled under this Act to a discount for
collecting and remitting the tax imposed under this Act to the
Department with respect to the sale of the motor vehicle or
other leased property to the lessor, then the right to the
discount provided in this Act shall be transferred to the
lessor with respect to the tax paid by the lessor for any
amount received by the lessor from the lessee for the leased
vehicle or other leased property that is not calculated at the
time the lease is executed; provided that the discount is only

SB2201 - 26 - LRB103 28036 HLH 54415 b
allowed if the return is timely filed and for amounts timely
paid. The "selling price" of a motor vehicle that is sold on or
after January 1, 2015 for the purpose of leasing for a defined
period of longer than one year and other tangible personal
property, other than computer software and property that is
subject to the Rental Purchase Agreement Occupation and Use
Tax Act, that is sold on or after January 1, 2023 for the
purpose of leasing shall not be reduced by the value of or
credit given for traded-in tangible personal property owned by
the lessor, nor shall it be reduced by the value of or credit
given for traded-in tangible personal property owned by the
lessee, regardless of whether the trade-in value thereof is
assigned by the lessee to the lessor. In the case of a motor
vehicle that is sold for the purpose of leasing for a defined
period of longer than one year, the sale occurs at the time of
the delivery of the vehicle, regardless of the due date of any
lease payments. In the case of other leased property, the sale
occurs upon delivery of the property to the lessor, and tax is
due upon each payment made by the lessee. A lessor who incurs a
Retailers' Occupation Tax liability on the sale of a motor
vehicle coming off lease or the sale of other leased property
may not take a credit against that liability for the Use Tax
the lessor paid upon the purchase of the motor vehicle (or for
any tax the lessor paid with respect to any amount received by
the lessor from the lessee for the leased vehicle that was not
calculated at the time the lease was executed) if the selling

SB2201 - 27 - LRB103 28036 HLH 54415 b
price of the motor vehicle at the time of purchase was
calculated using the definition of "selling price" as defined
in this paragraph. Notwithstanding any other provision of this
Act to the contrary, lessors shall file all returns and make
all payments required under this paragraph to the Department
by electronic means in the manner and form as required by the
Department. This paragraph does not apply to leases of motor
vehicles for which, at the time the lease is entered into, the
term of the lease is not a defined period, including leases
with a defined initial period with the option to continue the
lease on a month-to-month or other basis beyond the initial
defined period.
The phrase "like kind and character" shall be liberally
construed (including but not limited to any form of motor
vehicle for any form of motor vehicle, or any kind of farm or
agricultural implement for any other kind of farm or
agricultural implement), while not including a kind of item
which, if sold at retail by that retailer, would be exempt from
retailers' occupation tax and use tax as an isolated or
occasional sale.
"Gross receipts" from the sales of tangible personal
property at retail means the total selling price or the amount
of such sales, as hereinbefore defined. In the case of charge
and time sales, the amount thereof shall be included only as
and when payments are received by the seller. Receipts or
other consideration derived by a seller from the sale,

SB2201 - 28 - LRB103 28036 HLH 54415 b
transfer or assignment of accounts receivable to a wholly
owned subsidiary will not be deemed payments prior to the time
the purchaser makes payment on such accounts.
"Department" means the Department of Revenue.
"Person" means any natural individual, firm, partnership,
association, joint stock company, joint adventure, public or
private corporation, limited liability company, or a receiver,
executor, trustee, guardian or other representative appointed
by order of any court.
The isolated or occasional sale of tangible personal
property at retail by a person who does not hold himself out as
being engaged (or who does not habitually engage) in selling
such tangible personal property at retail, or a sale through a
bulk vending machine, does not constitute engaging in a
business of selling such tangible personal property at retail
within the meaning of this Act; provided that any person who is
engaged in a business which is not subject to the tax imposed
by this Act because of involving the sale of or a contract to
sell real estate or a construction contract to improve real
estate or a construction contract to engineer, install, and
maintain an integrated system of products, but who, in the
course of conducting such business, transfers tangible
personal property to users or consumers in the finished form
in which it was purchased, and which does not become real
estate or was not engineered and installed, under any
provision of a construction contract or real estate sale or

SB2201 - 29 - LRB103 28036 HLH 54415 b
real estate sales agreement entered into with some other
person arising out of or because of such nontaxable business,
is engaged in the business of selling tangible personal
property at retail to the extent of the value of the tangible
personal property so transferred. If, in such a transaction, a
separate charge is made for the tangible personal property so
transferred, the value of such property, for the purpose of
this Act, shall be the amount so separately charged, but not
less than the cost of such property to the transferor; if no
separate charge is made, the value of such property, for the
purposes of this Act, is the cost to the transferor of such
tangible personal property. Construction contracts for the
improvement of real estate consisting of engineering,
installation, and maintenance of voice, data, video, security,
and all telecommunication systems do not constitute engaging
in a business of selling tangible personal property at retail
within the meaning of this Act if they are sold at one
specified contract price.
A person who holds himself or herself out as being engaged
(or who habitually engages) in selling tangible personal
property at retail is a person engaged in the business of
selling tangible personal property at retail hereunder with
respect to such sales (and not primarily in a service
occupation) notwithstanding the fact that such person designs
and produces such tangible personal property on special order
for the purchaser and in such a way as to render the property

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

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

SB2201 - 32 - LRB103 28036 HLH 54415 b
"Marketplace seller" means a person that makes sales
through a marketplace operated by an unrelated third party
marketplace facilitator.
(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20;
102-353, eff. 1-1-22; 102-634, eff. 8-27-21; 102-813, eff.
5-13-22.)
(35 ILCS 120/2) (from Ch. 120, par. 441)
Sec. 2. Tax imposed.
(a) A tax is imposed upon persons engaged in the business
of one or both of the following: (i) selling at retail tangible
personal property, including computer software, and including
photographs, negatives, and positives that are the product of
photoprocessing, but not including products of photoprocessing
produced for use in motion pictures for public commercial
exhibition and (ii) leasing tangible personal property, other
than computer software and property subject to the Rental
Purchase Agreement Occupation and Use Tax Act and any motor
vehicle as defined in Section 1-146 of the Illinois Vehicle
Code. Beginning January 1, 2001, prepaid telephone calling
arrangements shall be considered tangible personal property
subject to the tax imposed under this Act regardless of the
form in which those arrangements may be embodied, transmitted,
or fixed by any method now known or hereafter developed. Sales
of (1) electricity delivered to customers by wire; (2) natural
or artificial gas that is delivered to customers through

SB2201 - 33 - LRB103 28036 HLH 54415 b
pipes, pipelines, or mains; and (3) water that is delivered to
customers through pipes, pipelines, or mains are not subject
to tax under this Act. The provisions of this amendatory Act of
the 98th General Assembly are declaratory of existing law as
to the meaning and scope of this Act.
(b) Beginning on January 1, 2021, a remote retailer is
engaged in the occupation of selling at retail in Illinois for
purposes of this Act, if:
(1) the cumulative gross receipts from sales of
tangible personal property to purchasers in Illinois are
$100,000 or more; or
(2) the retailer enters into 200 or more separate
transactions for the sale of tangible personal property to
purchasers in Illinois.
Remote retailers that meet or exceed the threshold in
either paragraph (1) or (2) above shall be liable for all
applicable State retailers' and locally imposed retailers'
occupation taxes administered by the Department on all retail
sales to Illinois purchasers.
The remote retailer shall determine on a quarterly basis,
ending on the last day of March, June, September, and
December, whether he or she meets the criteria of either
paragraph (1) or (2) of this subsection for the preceding
12-month period. If the retailer meets the criteria of either
paragraph (1) or (2) for a 12-month period, he or she is
considered a retailer maintaining a place of business in this

SB2201 - 34 - LRB103 28036 HLH 54415 b
State and is required to collect and remit the tax imposed
under this Act and all retailers' occupation tax imposed by
local taxing jurisdictions in Illinois, provided such local
taxes are administered by the Department, and to file all
applicable returns for one year. At the end of that one-year
period, the retailer shall determine whether the retailer met
the criteria of either paragraph (1) or (2) for the preceding
12-month period. If the retailer met the criteria in either
paragraph (1) or (2) for the preceding 12-month period, he or
she is considered a retailer maintaining a place of business
in this State and is required to collect and remit all
applicable State and local retailers' occupation taxes and
file returns for the subsequent year. If, at the end of a
one-year period, a retailer that was required to collect and
remit the tax imposed under this Act determines that he or she
did not meet the criteria in either paragraph (1) or (2) during
the preceding 12-month period, then the retailer shall
subsequently determine on a quarterly basis, ending on the
last day of March, June, September, and December, whether he
or she meets the criteria of either paragraph (1) or (2) for
the preceding 12-month period.
(b-5) For the purposes of this Section, neither the gross
receipts from nor the number of separate transactions for
sales of tangible personal property to purchasers in Illinois
that a remote retailer makes through a marketplace facilitator
shall be included for the purposes of determining whether he

SB2201 - 35 - LRB103 28036 HLH 54415 b
or she has met the thresholds of subsection (b) of this Section
so long as the remote retailer has received certification from
the marketplace facilitator that the marketplace facilitator
is legally responsible for payment of tax on such sales.
(b-10) A remote retailer required to collect taxes imposed
under the Use Tax Act on retail sales made to Illinois
purchasers shall be liable to the Department for such taxes,
except when the remote retailer is relieved of the duty to
remit such taxes by virtue of having paid to the Department
taxes imposed by this Act in accordance with this Section upon
his or her gross receipts from such sales.
(c) Marketplace facilitators engaged in the business of
selling at retail tangible personal property in Illinois.
Beginning January 1, 2021, a marketplace facilitator is
engaged in the occupation of selling at retail tangible
personal property in Illinois for purposes of this Act if,
during the previous 12-month period:
(1) the cumulative gross receipts from sales of
tangible personal property on its own behalf or on behalf
of marketplace sellers to purchasers in Illinois equals
$100,000 or more; or
(2) the marketplace facilitator enters into 200 or
more separate transactions on its own behalf or on behalf
of marketplace sellers for the sale of tangible personal
property to purchasers in Illinois, regardless of whether
the marketplace facilitator or marketplace sellers for

SB2201 - 36 - LRB103 28036 HLH 54415 b
whom such sales are facilitated are registered as
retailers in this State.
A marketplace facilitator who meets either paragraph (1)
or (2) of this subsection is required to remit the applicable
State retailers' occupation taxes under this Act and local
retailers' occupation taxes administered by the Department on
all taxable sales of tangible personal property made by the
marketplace facilitator or facilitated for marketplace sellers
to customers in this State. A marketplace facilitator selling
or facilitating the sale of tangible personal property to
customers in this State is subject to all applicable
procedures and requirements of this Act.
The marketplace facilitator shall determine on a quarterly
basis, ending on the last day of March, June, September, and
December, whether he or she meets the criteria of either
paragraph (1) or (2) of this subsection for the preceding
12-month period. If the marketplace facilitator meets the
criteria of either paragraph (1) or (2) for a 12-month period,
he or she is considered a retailer maintaining a place of
business in this State and is required to remit the tax imposed
under this Act and all retailers' occupation tax imposed by
local taxing jurisdictions in Illinois, provided such local
taxes are administered by the Department, and to file all
applicable returns for one year. At the end of that one-year
period, the marketplace facilitator shall determine whether it
met the criteria of either paragraph (1) or (2) for the

SB2201 - 37 - LRB103 28036 HLH 54415 b
preceding 12-month period. If the marketplace facilitator met
the criteria in either paragraph (1) or (2) for the preceding
12-month period, it is considered a retailer maintaining a
place of business in this State and is required to collect and
remit all applicable State and local retailers' occupation
taxes and file returns for the subsequent year. If at the end
of a one-year period a marketplace facilitator that was
required to collect and remit the tax imposed under this Act
determines that he or she did not meet the criteria in either
paragraph (1) or (2) during the preceding 12-month period, the
marketplace facilitator shall subsequently determine on a
quarterly basis, ending on the last day of March, June,
September, and December, whether he or she meets the criteria
of either paragraph (1) or (2) for the preceding 12-month
period.
A marketplace facilitator shall be entitled to any
credits, deductions, or adjustments to the sales price
otherwise provided to the marketplace seller, in addition to
any such adjustments provided directly to the marketplace
facilitator. This Section pertains to, but is not limited to,
adjustments such as discounts, coupons, and rebates. In
addition, a marketplace facilitator shall be entitled to the
retailers' discount provided in Section 3 of the Retailers'
Occupation Tax Act on all marketplace sales, and the
marketplace seller shall not include sales made through a
marketplace facilitator when computing any retailers' discount

SB2201 - 38 - LRB103 28036 HLH 54415 b
on remaining sales. Marketplace facilitators shall report and
remit the applicable State and local retailers' occupation
taxes on sales facilitated for marketplace sellers separately
from any sales or use tax collected on taxable retail sales
made directly by the marketplace facilitator or its
affiliates.
The marketplace facilitator is liable for the remittance
of all applicable State retailers' occupation taxes under this
Act and local retailers' occupation taxes administered by the
Department on sales through the marketplace and is subject to
audit on all such sales. The Department shall not audit
marketplace sellers for their marketplace sales where a
marketplace facilitator remitted the applicable State and
local retailers' occupation taxes unless the marketplace
facilitator seeks relief as a result of incorrect information
provided to the marketplace facilitator by a marketplace
seller as set forth in this Section. The marketplace
facilitator shall not be held liable for tax on any sales made
by a marketplace seller that take place outside of the
marketplace and which are not a part of any agreement between a
marketplace facilitator and a marketplace seller. In addition,
marketplace facilitators shall not be held liable to State and
local governments of Illinois for having charged and remitted
an incorrect amount of State and local retailers' occupation
tax if, at the time of the sale, the tax is computed based on
erroneous data provided by the State in database files on tax

SB2201 - 39 - LRB103 28036 HLH 54415 b
rates, boundaries, or taxing jurisdictions or incorrect
information provided to the marketplace facilitator by the
marketplace seller.
(d) A marketplace facilitator shall:
(1) certify to each marketplace seller that the
marketplace facilitator assumes the rights and duties of a
retailer under this Act with respect to sales made by the
marketplace seller through the marketplace; and
(2) remit taxes imposed by this Act as required by
this Act for sales made through the marketplace.
(e) A marketplace seller shall retain books and records
for all sales made through a marketplace in accordance with
the requirements of this Act.
(f) A marketplace facilitator is subject to audit on all
marketplace sales for which it is considered to be the
retailer, but shall not be liable for tax or subject to audit
on sales made by marketplace sellers outside of the
marketplace.
(g) A marketplace facilitator required to collect taxes
imposed under the Use Tax Act on marketplace sales made to
Illinois purchasers shall be liable to the Department for such
taxes, except when the marketplace facilitator is relieved of
the duty to remit such taxes by virtue of having paid to the
Department taxes imposed by this Act in accordance with this
Section upon his or her gross receipts from such sales.
(h) Nothing in this Section shall allow the Department to

SB2201 - 40 - LRB103 28036 HLH 54415 b
collect retailers' occupation taxes from both the marketplace
facilitator and marketplace seller on the same transaction.
(i) If, for any reason, the Department is prohibited from
enforcing the marketplace facilitator's duty under this Act to
remit taxes pursuant to this Section, the duty to remit such
taxes remains with the marketplace seller.
(j) Nothing in this Section affects the obligation of any
consumer to remit use tax for any taxable transaction for
which a certified service provider acting on behalf of a
remote retailer or a marketplace facilitator does not collect
and remit the appropriate tax.
(k) Nothing in this Section shall allow the Department to
collect the retailers' occupation tax from both the
marketplace facilitator and the marketplace seller.
(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
(35 ILCS 120/2c) (from Ch. 120, par. 441c)
Sec. 2c. If the purchaser is not registered with the
Department as a taxpayer, but claims to be a reseller of the
tangible personal property in such a way that such resales are
not taxable under this Act or under some other tax law which
the Department may administer, such purchaser (except in the
case of an out-of-State purchaser who will always resell and
deliver the property to his customers outside Illinois) shall
apply to the Department for a resale number. Such applicant
shall state facts which will show the Department why such

SB2201 - 41 - LRB103 28036 HLH 54415 b
applicant is not liable for tax under this Act or under some
other tax law which the Department may administer on any of his
resales and shall furnish such additional information as the
Department may reasonably require.
Upon approval of the application, the Department shall
assign a resale number to the applicant and shall certify such
number to him. The Department may cancel any such number which
is obtained through misrepresentation, or which is used to
make a purchase tax-free when the purchase in fact is not a
purchase for resale, or which no longer applies because of the
purchaser's having discontinued the making of tax exempt
resales of the property.
The Department may restrict the use of the number to one
year at a time or to some other definite period if the
Department finds it impracticable or otherwise inadvisable to
issue such numbers for indefinite periods.
Except as provided hereinabove in this Section, a sale
shall be made tax-free on the ground of being a sale for resale
or lease if the purchaser has an active registration number or
resale number from the Department and furnishes that number to
the seller in connection with certifying to the seller that
any sale to such purchaser is nontaxable because of being a
sale for resale or lease.
Failure to present an active registration number or resale
number and a certification to the seller that a sale is for
resale or lease creates a presumption that a sale is not for

SB2201 - 42 - LRB103 28036 HLH 54415 b
resale or lease. This presumption may be rebutted by other
evidence that all of the seller's sales are sale for resale or
lease, or that a particular sale is a sale for resale or lease.
(Source: P.A. 83-1463.)
(35 ILCS 120/6e new)
Sec. 6e. One-time transitional use tax credit. Within 3
months after the effective date of this amendatory Act of the
103rd General Assembly, lessors of non-titled leased property,
other than computer software and property subject to the
Rental Purchase Agreement Occupation and Use Tax Act, shall
file an application upon a form prescribed and furnished by
the Department, to receive a one-time credit for any use tax
paid prior to the effective date of effective date of this
amendatory Act of the 103rd General Assembly on that property.
The Department shall issue a credit in that amount. Upon
issuance of the credit, the lessor may apply the credit
against the tax imposed under this Act or the Use Tax Act.
Section 15. The Counties Code is amended by changing
Sections 5-1006, 5-1006.5, and 5-1006.7 as follows:
(55 ILCS 5/5-1006) (from Ch. 34, par. 5-1006)
Sec. 5-1006. Home Rule County Retailers' Occupation Tax
Law. Any county that is a home rule unit may impose a tax upon
all persons engaged in the business of selling tangible

SB2201 - 43 - LRB103 28036 HLH 54415 b
personal property, leasing tangible personal property, or both
selling and leasing tangible personal property, other than an
item of tangible personal property titled or registered with
an agency of this State's government, at retail in the county
on the gross receipts from such sales or leases made in the
course of their business. The tax shall not be imposed on the
sale or lease of: (1) tangible personal property titled or
registered with an agency of this State's government; (2)
tangible personal property subject to a personal property
lease transaction tax paid to the home rule municipality; (3)
computer software; or (4) tangible personal property subject
to the Rental Purchase Agreement Occupation and Use Tax Act.
If imposed, this tax shall only be imposed in 1/4% increments.
On and after September 1, 1991, this additional tax may not be
imposed on tangible personal property taxed at the 1% rate
under the Retailers' Occupation Tax Act (or at the 0% rate
imposed under this amendatory Act of the 102nd General
Assembly). Beginning December 1, 2019, this tax is not imposed
on sales of aviation fuel unless the tax revenue is expended
for airport-related purposes. If the county does not have an
airport-related purpose to which it dedicates aviation fuel
tax revenue, then aviation fuel is excluded from the tax. The
county must comply with the certification requirements for
airport-related purposes under Section 2-22 of the Retailers'
Occupation Tax Act. For purposes of this Section,
"airport-related purposes" has the meaning ascribed in Section

SB2201 - 44 - LRB103 28036 HLH 54415 b
6z-20.2 of the State Finance Act. This exclusion for aviation
fuel only applies for so long as the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
county. The changes made to this Section by this amendatory
Act of the 101st General Assembly are a denial and limitation
of home rule powers and functions under subsection (g) of
Section 6 of Article VII of the Illinois Constitution. The tax
imposed by a home rule county pursuant to this Section and all
civil penalties that may be assessed as an incident thereof
shall be collected and enforced by the State Department of
Revenue. The certificate of registration that is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act shall permit the retailer to engage in a business that is
taxable under any ordinance or resolution enacted pursuant to
this Section without registering separately with the
Department under such ordinance or resolution or under this
Section. The Department shall have full power to administer
and enforce this Section; to collect all taxes and penalties
due hereunder; to dispose of taxes and penalties so collected
in the manner hereinafter provided; and to determine all
rights to credit memoranda arising on account of the erroneous
payment of tax or penalty hereunder. In the administration of,
and compliance with, this Section, the Department and persons
who are subject to this Section shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,

SB2201 - 45 - LRB103 28036 HLH 54415 b
penalties and definitions of terms, and employ the same modes
of procedure, as are prescribed in Sections 1, 1a, 1a-1, 1d,
1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in respect to all
provisions therein other than the State rate of tax), 3
(except as to the disposition of taxes and penalties
collected, and except that the retailer's discount is not
allowed for taxes paid on aviation fuel that are subject to the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l,
6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the Retailers'
Occupation Tax Act and Section 3-7 of the Uniform Penalty and
Interest Act, as fully as if those provisions were set forth
herein.
No tax may be imposed by a home rule county pursuant to
this Section unless the county also imposes a tax at the same
rate pursuant to Section 5-1007.
Persons subject to any tax imposed pursuant to the
authority granted in this Section may reimburse themselves for
their seller's tax liability hereunder by separately stating
such tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax which sellers
are required to collect under the Use Tax Act, pursuant to such
bracket schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State

SB2201 - 46 - LRB103 28036 HLH 54415 b
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the home rule county retailers' occupation
tax fund or the Local Government Aviation Trust Fund, as
appropriate.
Except as otherwise provided in this paragraph, the
Department shall forthwith pay over to the State Treasurer, ex
officio, as trustee, all taxes and penalties collected
hereunder for deposit into the Home Rule County Retailers'
Occupation Tax Fund. Taxes and penalties collected on aviation
fuel sold on or after December 1, 2019, shall be immediately
paid over by the Department to the State Treasurer, ex
officio, as trustee, for deposit into the Local Government
Aviation Trust Fund. The Department shall only pay moneys into
the Local Government Aviation Trust Fund under this Section
for so long as the revenue use requirements of 49 U.S.C.
47107(b) and 49 U.S.C. 47133 are binding on the county.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for
sales within a STAR bond district.

SB2201 - 47 - LRB103 28036 HLH 54415 b
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named counties, the
counties to be those from which retailers have paid taxes or
penalties hereunder to the Department during the second
preceding calendar month. The amount to be paid to each county
shall be the amount (not including credit memoranda and not
including taxes and penalties collected on aviation fuel sold
on or after December 1, 2019) collected hereunder during the
second preceding calendar month by the Department plus an
amount the Department determines is necessary to offset any
amounts that were erroneously paid to a different taxing body,
and not including an amount equal to the amount of refunds made
during the second preceding calendar month by the Department
on behalf of such county, and not including any amount which
the Department determines is necessary to offset any amounts
which were payable to a different taxing body but were
erroneously paid to the county, and not including any amounts
that are transferred to the STAR Bonds Revenue Fund, less 1.5%
of the remainder, which the Department shall transfer into the
Tax Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the counties, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt, by the

SB2201 - 48 - LRB103 28036 HLH 54415 b
Comptroller, of the disbursement certification to the counties
and the Tax Compliance and Administration Fund provided for in
this Section to be given to the Comptroller by the Department,
the Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with the directions contained
in the certification.
In addition to the disbursement required by the preceding
paragraph, an allocation shall be made in March of each year to
each county that received more than $500,000 in disbursements
under the preceding paragraph in the preceding calendar year.
The allocation shall be in an amount equal to the average
monthly distribution made to each such county under the
preceding paragraph during the preceding calendar year
(excluding the 2 months of highest receipts). The distribution
made in March of each year subsequent to the year in which an
allocation was made pursuant to this paragraph and the
preceding paragraph shall be reduced by the amount allocated
and disbursed under this paragraph in the preceding calendar
year. The Department shall prepare and certify to the
Comptroller for disbursement the allocations made in
accordance with this paragraph.
For the purpose of determining the local governmental unit
whose tax is applicable, a retail sale by a producer of coal or
other mineral mined in Illinois is a sale at retail at the
place where the coal or other mineral mined in Illinois is
extracted from the earth. This paragraph does not apply to

SB2201 - 49 - LRB103 28036 HLH 54415 b
coal or other mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the United States Constitution as a sale
in interstate or foreign commerce.
Nothing in this Section shall be construed to authorize a
county to impose a tax upon the privilege of engaging in any
business which under the Constitution of the United States may
not be made the subject of taxation by this State.
An ordinance or resolution imposing or discontinuing a tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of June, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of September next following such adoption and
filing. Beginning January 1, 1992, an ordinance or resolution
imposing or discontinuing the tax hereunder or effecting a
change in the rate thereof shall be adopted and a certified
copy thereof filed with the Department on or before the first
day of July, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of
October next following such adoption and filing. Beginning
January 1, 1993, an ordinance or resolution imposing or
discontinuing the tax hereunder or effecting a change in the
rate thereof shall be adopted and a certified copy thereof
filed with the Department on or before the first day of
October, whereupon the Department shall proceed to administer

SB2201 - 50 - LRB103 28036 HLH 54415 b
and enforce this Section as of the first day of January next
following such adoption and filing. Beginning April 1, 1998,
an ordinance or resolution imposing or discontinuing the tax
hereunder or effecting a change in the rate thereof shall
either (i) be adopted and a certified copy thereof filed with
the Department on or before the first day of April, whereupon
the Department shall proceed to administer and enforce this
Section as of the first day of July next following the adoption
and filing; or (ii) be adopted and a certified copy thereof
filed with the Department on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce this Section as of the first day of January next
following the adoption and filing.
When certifying the amount of a monthly disbursement to a
county under this Section, the Department shall increase or
decrease such amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous
6 months from the time a misallocation is discovered.
This Section shall be known and may be cited as the Home
Rule County Retailers' Occupation Tax Law.
(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
(55 ILCS 5/5-1006.5)
Sec. 5-1006.5. Special County Retailers' Occupation Tax

SB2201 - 51 - LRB103 28036 HLH 54415 b
For Public Safety, Public Facilities, Mental Health, Substance
Abuse, or Transportation.
(a) The county board of any county may impose a tax upon
all persons engaged in the business of selling tangible
personal property, leasing tangible personal property, or both
selling and leasing tangible personal property, other than
personal property titled or registered with an agency of this
State's government, at retail in the county on the gross
receipts from the sales or leases made in the course of
business to provide revenue to be used exclusively for public
safety, public facility, mental health, substance abuse, or
transportation purposes in that county (except as otherwise
provided in this Section), if a proposition for the tax has
been submitted to the electors of that county and approved by a
majority of those voting on the question. The tax shall not be
imposed on the sale or lease of: (1) tangible personal
property titled or registered with an agency of this State's
government; (2) tangible personal property subject to a
personal property lease transaction tax paid to the home rule
municipality; (3) computer software; or (4) tangible personal
property subject to the Rental Purchase Agreement Occupation
and Use Tax Act. If imposed, this tax shall be imposed only in
one-quarter percent increments. By resolution, the county
board may order the proposition to be submitted at any
election. If the tax is imposed for transportation purposes
for expenditures for public highways or as authorized under

SB2201 - 52 - LRB103 28036 HLH 54415 b
the Illinois Highway Code, the county board must publish
notice of the existence of its long-range highway
transportation plan as required or described in Section 5-301
of the Illinois Highway Code and must make the plan publicly
available prior to approval of the ordinance or resolution
imposing the tax. If the tax is imposed for transportation
purposes for expenditures for passenger rail transportation,
the county board must publish notice of the existence of its
long-range passenger rail transportation plan and must make
the plan publicly available prior to approval of the ordinance
or resolution imposing the tax.
If a tax is imposed for public facilities purposes, then
the name of the project may be included in the proposition at
the discretion of the county board as determined in the
enabling resolution. For example, the "XXX Nursing Home" or
the "YYY Museum".
The county clerk shall certify the question to the proper
election authority, who shall submit the proposition at an
election in accordance with the general election law.
(1) The proposition for public safety purposes shall
be in substantially the following form:
"To pay for public safety purposes, shall (name of
county) be authorized to impose an increase on its share
of local sales taxes by (insert rate)?"
As additional information on the ballot below the
question shall appear the following:

SB2201 - 53 - LRB103 28036 HLH 54415 b
"This would mean that a consumer would pay an
additional (insert amount) in sales tax for every $100 of
tangible personal property bought at retail."
The county board may also opt to establish a sunset
provision at which time the additional sales tax would
cease being collected, if not terminated earlier by a vote
of the county board. If the county board votes to include a
sunset provision, the proposition for public safety
purposes shall be in substantially the following form:
"To pay for public safety purposes, shall (name of
county) be authorized to impose an increase on its share
of local sales taxes by (insert rate) for a period not to
exceed (insert number of years)?"
As additional information on the ballot below the
question shall appear the following:
"This would mean that a consumer would pay an
additional (insert amount) in sales tax for every $100 of
tangible personal property bought at retail. If imposed,
the additional tax would cease being collected at the end
of (insert number of years), if not terminated earlier by
a vote of the county board."
For the purposes of the paragraph, "public safety
purposes" means crime prevention, detention, fire
fighting, police, medical, ambulance, or other emergency
services.
Votes shall be recorded as "Yes" or "No".

SB2201 - 54 - LRB103 28036 HLH 54415 b
Beginning on the January 1 or July 1, whichever is
first, that occurs not less than 30 days after May 31, 2015
(the effective date of Public Act 99-4), Adams County may
impose a public safety retailers' occupation tax and
service occupation tax at the rate of 0.25%, as provided
in the referendum approved by the voters on April 7, 2015,
notwithstanding the omission of the additional information
that is otherwise required to be printed on the ballot
below the question pursuant to this item (1).
(2) The proposition for transportation purposes shall
be in substantially the following form:
"To pay for improvements to roads and other
transportation purposes, shall (name of county) be
authorized to impose an increase on its share of local
sales taxes by (insert rate)?"
As additional information on the ballot below the
question shall appear the following:
"This would mean that a consumer would pay an
additional (insert amount) in sales tax for every $100 of
tangible personal property bought at retail."
The county board may also opt to establish a sunset
provision at which time the additional sales tax would
cease being collected, if not terminated earlier by a vote
of the county board. If the county board votes to include a
sunset provision, the proposition for transportation
purposes shall be in substantially the following form:

SB2201 - 55 - LRB103 28036 HLH 54415 b
"To pay for road improvements and other transportation
purposes, shall (name of county) be authorized to impose
an increase on its share of local sales taxes by (insert
rate) for a period not to exceed (insert number of
years)?"
As additional information on the ballot below the
question shall appear the following:
"This would mean that a consumer would pay an
additional (insert amount) in sales tax for every $100 of
tangible personal property bought at retail. If imposed,
the additional tax would cease being collected at the end
of (insert number of years), if not terminated earlier by
a vote of the county board."
For the purposes of this paragraph, transportation
purposes means construction, maintenance, operation, and
improvement of public highways, any other purpose for
which a county may expend funds under the Illinois Highway
Code, and passenger rail transportation.
The votes shall be recorded as "Yes" or "No".
(3) The proposition for public facilities purposes
shall be in substantially the following form:
"To pay for public facilities purposes, shall (name of
county) be authorized to impose an increase on its share
of local sales taxes by (insert rate)?"
As additional information on the ballot below the
question shall appear the following:

SB2201 - 56 - LRB103 28036 HLH 54415 b
"This would mean that a consumer would pay an
additional (insert amount) in sales tax for every $100 of
tangible personal property bought at retail."
The county board may also opt to establish a sunset
provision at which time the additional sales tax would
cease being collected, if not terminated earlier by a vote
of the county board. If the county board votes to include a
sunset provision, the proposition for public facilities
purposes shall be in substantially the following form:
"To pay for public facilities purposes, shall (name of
county) be authorized to impose an increase on its share
of local sales taxes by (insert rate) for a period not to
exceed (insert number of years)?"
As additional information on the ballot below the
question shall appear the following:
"This would mean that a consumer would pay an
additional (insert amount) in sales tax for every $100 of
tangible personal property bought at retail. If imposed,
the additional tax would cease being collected at the end
of (insert number of years), if not terminated earlier by
a vote of the county board."
For purposes of this Section, "public facilities
purposes" means the acquisition, development,
construction, reconstruction, rehabilitation,
improvement, financing, architectural planning, and
installation of capital facilities consisting of

SB2201 - 57 - LRB103 28036 HLH 54415 b
buildings, structures, and durable equipment and for the
acquisition and improvement of real property and interest
in real property required, or expected to be required, in
connection with the public facilities, for use by the
county for the furnishing of governmental services to its
citizens, including, but not limited to, museums and
nursing homes.
The votes shall be recorded as "Yes" or "No".
(4) The proposition for mental health purposes shall
be in substantially the following form:
"To pay for mental health purposes, shall (name of
county) be authorized to impose an increase on its share
of local sales taxes by (insert rate)?"
As additional information on the ballot below the
question shall appear the following:
"This would mean that a consumer would pay an
additional (insert amount) in sales tax for every $100 of
tangible personal property bought at retail."
The county board may also opt to establish a sunset
provision at which time the additional sales tax would
cease being collected, if not terminated earlier by a vote
of the county board. If the county board votes to include a
sunset provision, the proposition for public facilities
purposes shall be in substantially the following form:
"To pay for mental health purposes, shall (name of
county) be authorized to impose an increase on its share

SB2201 - 58 - LRB103 28036 HLH 54415 b
of local sales taxes by (insert rate) for a period not to
exceed (insert number of years)?"
As additional information on the ballot below the
question shall appear the following:
"This would mean that a consumer would pay an
additional (insert amount) in sales tax for every $100 of
tangible personal property bought at retail. If imposed,
the additional tax would cease being collected at the end
of (insert number of years), if not terminated earlier by
a vote of the county board."
The votes shall be recorded as "Yes" or "No".
(5) The proposition for substance abuse purposes shall
be in substantially the following form:
"To pay for substance abuse purposes, shall (name of
county) be authorized to impose an increase on its share
of local sales taxes by (insert rate)?"
As additional information on the ballot below the
question shall appear the following:
"This would mean that a consumer would pay an
additional (insert amount) in sales tax for every $100 of
tangible personal property bought at retail."
The county board may also opt to establish a sunset
provision at which time the additional sales tax would
cease being collected, if not terminated earlier by a vote
of the county board. If the county board votes to include a
sunset provision, the proposition for public facilities

SB2201 - 59 - LRB103 28036 HLH 54415 b
purposes shall be in substantially the following form:
"To pay for substance abuse purposes, shall (name of
county) be authorized to impose an increase on its share
of local sales taxes by (insert rate) for a period not to
exceed (insert number of years)?"
As additional information on the ballot below the
question shall appear the following:
"This would mean that a consumer would pay an
additional (insert amount) in sales tax for every $100 of
tangible personal property bought at retail. If imposed,
the additional tax would cease being collected at the end
of (insert number of years), if not terminated earlier by
a vote of the county board."
The votes shall be recorded as "Yes" or "No".
If a majority of the electors voting on the proposition
vote in favor of it, the county may impose the tax. A county
may not submit more than one proposition authorized by this
Section to the electors at any one time.
This additional tax may not be imposed on tangible
personal property taxed at the 1% rate under the Retailers'
Occupation Tax Act (or at the 0% rate imposed under this
amendatory Act of the 102nd General Assembly). Beginning
December 1, 2019 and through December 31, 2020, this tax is not
imposed on sales of aviation fuel unless the tax revenue is
expended for airport-related purposes. If the county does not
have an airport-related purpose to which it dedicates aviation

SB2201 - 60 - LRB103 28036 HLH 54415 b
fuel tax revenue, then aviation fuel is excluded from the tax.
The county must comply with the certification requirements for
airport-related purposes under Section 2-22 of the Retailers'
Occupation Tax Act. For purposes of this Section,
"airport-related purposes" has the meaning ascribed in Section
6z-20.2 of the State Finance Act. Beginning January 1, 2021,
this tax is not imposed on sales of aviation fuel for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the county. The tax imposed by a
county under this Section and all civil penalties that may be
assessed as an incident of the tax shall be collected and
enforced by the Illinois Department of Revenue and deposited
into a special fund created for that purpose. The certificate
of registration that is issued by the Department to a retailer
under the Retailers' Occupation Tax Act shall permit the
retailer to engage in a business that is taxable without
registering separately with the Department under an ordinance
or resolution under this Section. The Department has full
power to administer and enforce this Section, to collect all
taxes and penalties due under this Section, to dispose of
taxes and penalties so collected in the manner provided in
this Section, and to determine all rights to credit memoranda
arising on account of the erroneous payment of a tax or penalty
under this Section. In the administration of and compliance
with this Section, the Department and persons who are subject
to this Section shall (i) have the same rights, remedies,

SB2201 - 61 - LRB103 28036 HLH 54415 b
privileges, immunities, powers, and duties, (ii) be subject to
the same conditions, restrictions, limitations, penalties, and
definitions of terms, and (iii) employ the same modes of
procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e,
1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-70 (in respect to all
provisions contained in those Sections other than the State
rate of tax), 2a, 2b, 2c, 3 (except provisions relating to
transaction returns and quarter monthly payments, and except
that the retailer's discount is not allowed for taxes paid on
aviation fuel that are deposited into the Local Government
Aviation Trust Fund), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13
of the Retailers' Occupation Tax Act and Section 3-7 of the
Uniform Penalty and Interest Act as if those provisions were
set forth in this Section.
Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
sellers' tax liability by separately stating the tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State tax which sellers are required
to collect under the Use Tax Act, pursuant to such bracketed
schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the

SB2201 - 62 - LRB103 28036 HLH 54415 b
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the County Public Safety, Public Facilities,
Mental Health, Substance Abuse, or Transportation Retailers'
Occupation Tax Fund or the Local Government Aviation Trust
Fund, as appropriate.
(b) If a tax has been imposed under subsection (a), a
service occupation tax shall also be imposed at the same rate
upon all persons engaged, in the county, in the business of
making sales of service, who, as an incident to making those
sales of service, transfer tangible personal property within
the county as an incident to a sale of service. This tax may
not be imposed on tangible personal property taxed at the 1%
rate under the Service Occupation Tax Act (or at the 0% rate
imposed under this amendatory Act of the 102nd General
Assembly). Beginning December 1, 2019 and through December 31,
2020, this tax is not imposed on sales of aviation fuel unless
the tax revenue is expended for airport-related purposes. If
the county does not have an airport-related purpose to which
it dedicates aviation fuel tax revenue, then aviation fuel is
excluded from the tax. The county must comply with the
certification requirements for airport-related purposes under
Section 2-22 of the Retailers' Occupation Tax Act. For
purposes of this Section, "airport-related purposes" has the
meaning ascribed in Section 6z-20.2 of the State Finance Act.
Beginning January 1, 2021, this tax is not imposed on sales of

SB2201 - 63 - LRB103 28036 HLH 54415 b
aviation fuel for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county.
The tax imposed under this subsection and all civil penalties
that may be assessed as an incident thereof shall be collected
and enforced by the Department of Revenue. The Department has
full power to administer and enforce this subsection; to
collect all taxes and penalties due hereunder; to dispose of
taxes and penalties so collected in the manner hereinafter
provided; and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty
hereunder. In the administration of and compliance with this
subsection, the Department and persons who are subject to this
paragraph shall (i) have the same rights, remedies,
privileges, immunities, powers, and duties, (ii) be subject to
the same conditions, restrictions, limitations, penalties,
exclusions, exemptions, and definitions of terms, and (iii)
employ the same modes of procedure as are prescribed in
Sections 2 (except that the reference to State in the
definition of supplier maintaining a place of business in this
State shall mean the county), 2a, 2b, 2c, 3 through 3-50 (in
respect to all provisions therein other than the State rate of
tax), 4 (except that the reference to the State shall be to the
county), 5, 7, 8 (except that the jurisdiction to which the tax
shall be a debt to the extent indicated in that Section 8 shall
be the county), 9 (except as to the disposition of taxes and
penalties collected, and except that the retailer's discount

SB2201 - 64 - LRB103 28036 HLH 54415 b
is not allowed for taxes paid on aviation fuel that are
deposited into the Local Government Aviation Trust Fund), 10,
11, 12 (except the reference therein to Section 2b of the
Retailers' Occupation Tax Act), 13 (except that any reference
to the State shall mean the county), Section 15, 16, 17, 18,
19, and 20 of the Service Occupation Tax Act, and Section 3-7
of the Uniform Penalty and Interest Act, as fully as if those
provisions were set forth herein.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability by separately stating the tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State tax that servicemen are
authorized to collect under the Service Use Tax Act, in
accordance with such bracket schedules as the Department may
prescribe.
Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the County Public Safety, Public Facilities,
Mental Health, Substance Abuse, or Transportation Retailers'
Occupation Fund or the Local Government Aviation Trust Fund,
as appropriate.

SB2201 - 65 - LRB103 28036 HLH 54415 b
Nothing in this subsection shall be construed to authorize
the county to impose a tax upon the privilege of engaging in
any business which under the Constitution of the United States
may not be made the subject of taxation by the State.
(c) Except as otherwise provided in this paragraph, the
Department shall immediately pay over to the State Treasurer,
ex officio, as trustee, all taxes and penalties collected
under this Section to be deposited into the County Public
Safety, Public Facilities, Mental Health, Substance Abuse, or
Transportation Retailers' Occupation Tax Fund, which shall be
an unappropriated trust fund held outside of the State
treasury. Taxes and penalties collected on aviation fuel sold
on or after December 1, 2019 and through December 31, 2020,
shall be immediately paid over by the Department to the State
Treasurer, ex officio, as trustee, for deposit into the Local
Government Aviation Trust Fund. The Department shall only pay
moneys into the Local Government Aviation Trust Fund under
this Act for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for

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sales within a STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to the counties from
which retailers have paid taxes or penalties to the Department
during the second preceding calendar month. The amount to be
paid to each county, and deposited by the county into its
special fund created for the purposes of this Section, shall
be the amount (not including credit memoranda and not
including taxes and penalties collected on aviation fuel sold
on or after December 1, 2019 and through December 31, 2020)
collected under this Section during the second preceding
calendar month by the Department plus an amount the Department
determines is necessary to offset any amounts that were
erroneously paid to a different taxing body, and not including
(i) an amount equal to the amount of refunds made during the
second preceding calendar month by the Department on behalf of
the county, (ii) any amount that the Department determines is
necessary to offset any amounts that were payable to a
different taxing body but were erroneously paid to the county,
(iii) any amounts that are transferred to the STAR Bonds
Revenue Fund, and (iv) 1.5% of the remainder, which shall be
transferred into the Tax Compliance and Administration Fund.
The Department, at the time of each monthly disbursement to
the counties, shall prepare and certify to the State

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Comptroller the amount to be transferred into the Tax
Compliance and Administration Fund under this subsection.
Within 10 days after receipt by the Comptroller of the
disbursement certification to the counties and the Tax
Compliance and Administration Fund provided for in this
Section to be given to the Comptroller by the Department, the
Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with directions contained in
the certification.
In addition to the disbursement required by the preceding
paragraph, an allocation shall be made in March of each year to
each county that received more than $500,000 in disbursements
under the preceding paragraph in the preceding calendar year.
The allocation shall be in an amount equal to the average
monthly distribution made to each such county under the
preceding paragraph during the preceding calendar year
(excluding the 2 months of highest receipts). The distribution
made in March of each year subsequent to the year in which an
allocation was made pursuant to this paragraph and the
preceding paragraph shall be reduced by the amount allocated
and disbursed under this paragraph in the preceding calendar
year. The Department shall prepare and certify to the
Comptroller for disbursement the allocations made in
accordance with this paragraph.
(d) For the purpose of determining the local governmental
unit whose tax is applicable, a retail sale by a producer of

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coal or another mineral mined in Illinois is a sale at retail
at the place where the coal or other mineral mined in Illinois
is extracted from the earth. This paragraph does not apply to
coal or another mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the United States Constitution as a sale
in interstate or foreign commerce.
(e) Nothing in this Section shall be construed to
authorize a county to impose a tax upon the privilege of
engaging in any business that under the Constitution of the
United States may not be made the subject of taxation by this
State.
(e-5) If a county imposes a tax under this Section, the
county board may, by ordinance, discontinue or lower the rate
of the tax. If the county board lowers the tax rate or
discontinues the tax, a referendum must be held in accordance
with subsection (a) of this Section in order to increase the
rate of the tax or to reimpose the discontinued tax.
(f) Beginning April 1, 1998 and through December 31, 2013,
the results of any election authorizing a proposition to
impose a tax under this Section or effecting a change in the
rate of tax, or any ordinance lowering the rate or
discontinuing the tax, shall be certified by the county clerk
and filed with the Illinois Department of Revenue either (i)
on or before the first day of April, whereupon the Department
shall proceed to administer and enforce the tax as of the first

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day of July next following the filing; or (ii) on or before the
first day of October, whereupon the Department shall proceed
to administer and enforce the tax as of the first day of
January next following the filing.
Beginning January 1, 2014, the results of any election
authorizing a proposition to impose a tax under this Section
or effecting an increase in the rate of tax, along with the
ordinance adopted to impose the tax or increase the rate of the
tax, or any ordinance adopted to lower the rate or discontinue
the tax, shall be certified by the county clerk and filed with
the Illinois Department of Revenue either (i) on or before the
first day of May, whereupon the Department shall proceed to
administer and enforce the tax as of the first day of July next
following the adoption and filing; or (ii) on or before the
first day of October, whereupon the Department shall proceed
to administer and enforce the tax as of the first day of
January next following the adoption and filing.
(g) When certifying the amount of a monthly disbursement
to a county under this Section, the Department shall increase
or decrease the amounts by an amount necessary to offset any
miscalculation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous
6 months from the time a miscalculation is discovered.
(g-5) Every county authorized to levy a tax under this
Section shall, before it levies such tax, establish a 7-member
mental health board, which shall have the same powers and

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duties and be constituted in the same manner as a community
mental health board established under the Community Mental
Health Act. Proceeds of the tax under this Section that are
earmarked for mental health or substance abuse purposes shall
be deposited into a special county occupation tax fund for
mental health and substance abuse. The 7-member mental health
board established under this subsection shall administer the
special county occupation tax fund for mental health and
substance abuse in the same manner as the community mental
health board administers the community mental health fund
under the Community Mental Health Act.
(h) This Section may be cited as the "Special County
Occupation Tax For Public Safety, Public Facilities, Mental
Health, Substance Abuse, or Transportation Law".
(i) For purposes of this Section, "public safety"
includes, but is not limited to, crime prevention, detention,
fire fighting, police, medical, ambulance, or other emergency
services. The county may share tax proceeds received under
this Section for public safety purposes, including proceeds
received before August 4, 2009 (the effective date of Public
Act 96-124), with any fire protection district located in the
county. For the purposes of this Section, "transportation"
includes, but is not limited to, the construction,
maintenance, operation, and improvement of public highways,
any other purpose for which a county may expend funds under the
Illinois Highway Code, and passenger rail transportation. For

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the purposes of this Section, "public facilities purposes"
includes, but is not limited to, the acquisition, development,
construction, reconstruction, rehabilitation, improvement,
financing, architectural planning, and installation of capital
facilities consisting of buildings, structures, and durable
equipment and for the acquisition and improvement of real
property and interest in real property required, or expected
to be required, in connection with the public facilities, for
use by the county for the furnishing of governmental services
to its citizens, including, but not limited to, museums and
nursing homes.
(j) The Department may promulgate rules to implement
Public Act 95-1002 only to the extent necessary to apply the
existing rules for the Special County Retailers' Occupation
Tax for Public Safety to this new purpose for public
facilities.
(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
101-275, eff. 8-9-19; 101-604, eff. 12-13-19; 102-379, eff.
1-1-22; 102-700, eff. 4-19-22.)
(55 ILCS 5/5-1006.7)
Sec. 5-1006.7. School facility and resources occupation
taxes.
(a) In any county, a tax shall be imposed upon all persons
engaged in the business of selling tangible personal property,
leasing tangible personal property, or both selling and

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leasing tangible personal property, other than personal
property titled or registered with an agency of this State's
government, at retail in the county on the gross receipts from
the sales or leases made in the course of business to provide
revenue to be used exclusively for (i) school facility
purposes (except as otherwise provided in this Section), (ii)
school resource officers and mental health professionals, or
(iii) school facility purposes, school resource officers, and
mental health professionals if a proposition for the tax has
been submitted to the electors of that county and approved by a
majority of those voting on the question as provided in
subsection (c). The tax shall not be imposed on the sale or
lease of: (1) tangible personal property titled or registered
with an agency of this State's government; (2) tangible
personal property subject to a personal property lease
transaction tax paid to the home rule municipality; (3)
computer software; or (4) tangible personal property subject
to the Rental Purchase Agreement Occupation and Use Tax Act.
The tax under this Section shall be imposed only in
one-quarter percent increments and may not exceed 1%.
This additional tax may not be imposed on tangible
personal property taxed at the 1% rate under the Retailers'
Occupation Tax Act (or at the 0% rate imposed under Public Act
102-700 this amendatory Act of the 102nd General Assembly).
Beginning December 1, 2019 and through December 31, 2020, this
tax is not imposed on sales of aviation fuel unless the tax

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

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

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

SB2201 - 76 - LRB103 28036 HLH 54415 b
all taxes and penalties due under this subsection, to dispose
of taxes and penalties so collected in the manner provided in
this subsection, and to determine all rights to credit
memoranda arising on account of the erroneous payment of a tax
or penalty under this subsection.
In the administration of and compliance with this
subsection, the Department and persons who are subject to this
subsection shall (i) have the same rights, remedies,
privileges, immunities, powers and duties, (ii) be subject to
the same conditions, restrictions, limitations, penalties and
definition of terms, and (iii) employ the same modes of
procedure as are set forth in Sections 2 (except that that
reference to State in the definition of supplier maintaining a
place of business in this State means the county), 2a through
2d, 3 through 3-50 (in respect to all provisions contained in
those Sections other than the State rate of tax), 4 (except
that the reference to the State shall be to the county), 5, 7,
8 (except that the jurisdiction to which the tax is a debt to
the extent indicated in that Section 8 is the county), 9
(except as to the disposition of taxes and penalties
collected, and except that the retailer's discount is not
allowed for taxes paid on aviation fuel that are subject to the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133), 10, 11, 12 (except the reference therein to Section 2b
of the Retailers' Occupation Tax Act), 13 (except that any
reference to the State means the county), Section 15, 16, 17,

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18, 19, and 20 of the Service Occupation Tax Act and all
provisions of the Uniform Penalty and Interest Act, as fully
as if those provisions were set forth herein.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability by separately stating the tax as an
additional charge, which may be stated in combination, in a
single amount, with State tax that servicemen are authorized
to collect under the Service Use Tax Act, pursuant to any
bracketed schedules set forth by the Department.
(c) The tax under this Section may not be imposed until the
question of imposing the tax has been submitted to the
electors of the county at a regular election and approved by a
majority of the electors voting on the question. For all
regular elections held prior to August 23, 2011 (the effective
date of Public Act 97-542), upon a resolution by the county
board or a resolution by school district boards that represent
at least 51% of the student enrollment within the county, the
county board must certify the question to the proper election
authority in accordance with the Election Code.
For all regular elections held prior to August 23, 2011
(the effective date of Public Act 97-542), the election
authority must submit the question in substantially the
following form:
Shall (name of county) be authorized to impose a
retailers' occupation tax and a service occupation tax

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(commonly referred to as a "sales tax") at a rate of
(insert rate) to be used exclusively for school facility
purposes?
The election authority must record the votes as "Yes" or
"No".
If a majority of the electors voting on the question vote
in the affirmative, then the county may, thereafter, impose
the tax.
For all regular elections held on or after August 23, 2011
(the effective date of Public Act 97-542), the regional
superintendent of schools for the county must, upon receipt of
a resolution or resolutions of school district boards that
represent more than 50% of the student enrollment within the
county, certify the question to the proper election authority
for submission to the electors of the county at the next
regular election at which the question lawfully may be
submitted to the electors, all in accordance with the Election
Code.
For all regular elections held on or after August 23, 2011
(the effective date of Public Act 97-542) and before August
23, 2019 (the effective date of Public Act 101-455), the
election authority must submit the question in substantially
the following form:
Shall a retailers' occupation tax and a service
occupation tax (commonly referred to as a "sales tax") be
imposed in (name of county) at a rate of (insert rate) to

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be used exclusively for school facility purposes?
The election authority must record the votes as "Yes" or
"No".
If a majority of the electors voting on the question vote
in the affirmative, then the tax shall be imposed at the rate
set forth in the question.
For all regular elections held on or after August 23, 2019
(the effective date of Public Act 101-455), the election
authority must submit the question as follows:
(1) If the referendum is to expand the use of revenues
from a currently imposed tax exclusively for school
facility purposes to include school resource officers and
mental health professionals, the question shall be in
substantially the following form:
In addition to school facility purposes, shall
(name of county) school districts be authorized to use
revenues from the tax commonly referred to as the
school facility sales tax that is currently imposed in
(name of county) at a rate of (insert rate) for school
resource officers and mental health professionals?
(2) If the referendum is to increase the rate of a tax
currently imposed exclusively for school facility purposes
at less than 1% and dedicate the additional revenues for
school resource officers and mental health professionals,
the question shall be in substantially the following form:
Shall the tax commonly referred to as the school

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

SB2201 - 81 - LRB103 28036 HLH 54415 b
exclusively for school facility purposes, school resource
officers, and mental health professionals, the question
shall be in substantially the following form:
Shall a retailers' occupation tax and a service
occupation tax (commonly referred to as a sales tax)
be imposed in (name of county) at a rate of (insert
rate) to be used exclusively for school facility
purposes, school resource officers, and mental health
professionals?
The election authority must record the votes as "Yes" or
"No".
If a majority of the electors voting on the question vote
in the affirmative, then the tax shall be imposed at the rate
set forth in the question.
For the purposes of this subsection (c), "enrollment"
means the head count of the students residing in the county on
the last school day of September of each year, which must be
reported on the Illinois State Board of Education Public
School Fall Enrollment/Housing Report.
(d) Except as otherwise provided, the Department shall
immediately pay over to the State Treasurer, ex officio, as
trustee, all taxes and penalties collected under this Section
to be deposited into the School Facility Occupation Tax Fund,
which shall be an unappropriated trust fund held outside the
State treasury. Taxes and penalties collected on aviation fuel
sold on or after December 1, 2019 and through December 31,

SB2201 - 82 - LRB103 28036 HLH 54415 b
2020, shall be immediately paid over by the Department to the
State Treasurer, ex officio, as trustee, for deposit into the
Local Government Aviation Trust Fund. The Department shall
only pay moneys into the Local Government Aviation Trust Fund
under this Section for so long as the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
county.
On or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to the regional
superintendents of schools in counties from which retailers or
servicemen have paid taxes or penalties to the Department
during the second preceding calendar month. The amount to be
paid to each regional superintendent of schools and disbursed
to him or her in accordance with Section 3-14.31 of the School
Code, is equal to the amount (not including credit memoranda
and not including taxes and penalties collected on aviation
fuel sold on or after December 1, 2019 and through December 31,
2020) collected from the county under this Section during the
second preceding calendar month by the Department, (i) less 2%
of that amount (except the amount collected on aviation fuel
sold on or after December 1, 2019 and through December 31,
2020), of which 50% shall be deposited into the Tax Compliance
and Administration Fund and shall be used by the Department,
subject to appropriation, to cover the costs of the Department
in administering and enforcing the provisions of this Section,

SB2201 - 83 - LRB103 28036 HLH 54415 b
on behalf of the county, and 50% shall be distributed to the
regional superintendent of schools to cover the costs in
administering and enforcing the provisions of this Section; ,
(ii) plus an amount that the Department determines is
necessary to offset any amounts that were erroneously paid to
a different taxing body; (iii) less an amount equal to the
amount of refunds made during the second preceding calendar
month by the Department on behalf of the county; and (iv) less
any amount that the Department determines is necessary to
offset any amounts that were payable to a different taxing
body but were erroneously paid to the county. When certifying
the amount of a monthly disbursement to a regional
superintendent of schools under this Section, the Department
shall increase or decrease the amounts by an amount necessary
to offset any miscalculation of previous disbursements within
the previous 6 months from the time a miscalculation is
discovered.
Within 10 days after receipt by the Comptroller from the
Department of the disbursement certification to the regional
superintendents of the schools provided for in this Section,
the Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with directions contained in
the certification.
If the Department determines that a refund should be made
under this Section to a claimant instead of issuing a credit
memorandum, then the Department shall notify the Comptroller,

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who shall cause the order to be drawn for the amount specified
and to the person named in the notification from the
Department. The refund shall be paid by the Treasurer out of
the School Facility Occupation Tax Fund or the Local
Government Aviation Trust Fund, as appropriate.
(e) For the purposes of determining the local governmental
unit whose tax is applicable, a retail sale by a producer of
coal or another mineral mined in Illinois is a sale at retail
at the place where the coal or other mineral mined in Illinois
is extracted from the earth. This subsection does not apply to
coal or another mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the United States Constitution as a sale
in interstate or foreign commerce.
(f) Nothing in this Section may be construed to authorize
a tax to be imposed upon the privilege of engaging in any
business that under the Constitution of the United States may
not be made the subject of taxation by this State.
(g) If a county board imposes a tax under this Section
pursuant to a referendum held before August 23, 2011 (the
effective date of Public Act 97-542) at a rate below the rate
set forth in the question approved by a majority of electors of
that county voting on the question as provided in subsection
(c), then the county board may, by ordinance, increase the
rate of the tax up to the rate set forth in the question
approved by a majority of electors of that county voting on the

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question as provided in subsection (c). If a county board
imposes a tax under this Section pursuant to a referendum held
before August 23, 2011 (the effective date of Public Act
97-542), then the board may, by ordinance, discontinue or
reduce the rate of the tax. If a tax is imposed under this
Section pursuant to a referendum held on or after August 23,
2011 (the effective date of Public Act 97-542) and before
August 23, 2019 (the effective date of Public Act 101-455),
then the county board may reduce or discontinue the tax, but
only in accordance with subsection (h-5) of this Section. If a
tax is imposed under this Section pursuant to a referendum
held on or after August 23, 2019 (the effective date of Public
Act 101-455), then the county board may reduce or discontinue
the tax, but only in accordance with subsection (h-10). If,
however, a school board issues bonds that are secured by the
proceeds of the tax under this Section, then the county board
may not reduce the tax rate or discontinue the tax if that rate
reduction or discontinuance would adversely affect the school
board's ability to pay the principal and interest on those
bonds as they become due or necessitate the extension of
additional property taxes to pay the principal and interest on
those bonds. If the county board reduces the tax rate or
discontinues the tax, then a referendum must be held in
accordance with subsection (c) of this Section in order to
increase the rate of the tax or to reimpose the discontinued
tax.

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Until January 1, 2014, the results of any election that
imposes, reduces, or discontinues a tax under this Section
must be certified by the election authority, and any ordinance
that increases or lowers the rate or discontinues the tax must
be certified by the county clerk and, in each case, filed with
the Illinois Department of Revenue either (i) on or before the
first day of April, whereupon the Department shall proceed to
administer and enforce the tax or change in the rate as of the
first day of July next following the filing; or (ii) on or
before the first day of October, whereupon the Department
shall proceed to administer and enforce the tax or change in
the rate as of the first day of January next following the
filing.
Beginning January 1, 2014, the results of any election
that imposes, reduces, or discontinues a tax under this
Section must be certified by the election authority, and any
ordinance that increases or lowers the rate or discontinues
the tax must be certified by the county clerk and, in each
case, filed with the Illinois Department of Revenue either (i)
on or before the first day of May, whereupon the Department
shall proceed to administer and enforce the tax or change in
the rate as of the first day of July next following the filing;
or (ii) on or before the first day of October, whereupon the
Department shall proceed to administer and enforce the tax or
change in the rate as of the first day of January next
following the filing.

SB2201 - 87 - LRB103 28036 HLH 54415 b
(h) For purposes of this Section, "school facility
purposes" means (i) the acquisition, development,
construction, reconstruction, rehabilitation, improvement,
financing, architectural planning, and installation of capital
facilities consisting of buildings, structures, and durable
equipment and for the acquisition and improvement of real
property and interest in real property required, or expected
to be required, in connection with the capital facilities and
(ii) the payment of bonds or other obligations heretofore or
hereafter issued, including bonds or other obligations
heretofore or hereafter issued to refund or to continue to
refund bonds or other obligations issued, for school facility
purposes, provided that the taxes levied to pay those bonds
are abated by the amount of the taxes imposed under this
Section that are used to pay those bonds. "School facility
purposes" also includes fire prevention, safety, energy
conservation, accessibility, school security, and specified
repair purposes set forth under Section 17-2.11 of the School
Code.
(h-5) A county board in a county where a tax has been
imposed under this Section pursuant to a referendum held on or
after August 23, 2011 (the effective date of Public Act
97-542) and before August 23, 2019 (the effective date of
Public Act 101-455) may, by ordinance or resolution, submit to
the voters of the county the question of reducing or
discontinuing the tax. In the ordinance or resolution, the

SB2201 - 88 - LRB103 28036 HLH 54415 b
county board shall certify the question to the proper election
authority in accordance with the Election Code. The election
authority must submit the question in substantially the
following form:
Shall the school facility retailers' occupation tax
and service occupation tax (commonly referred to as the
"school facility sales tax") currently imposed in (name of
county) at a rate of (insert rate) be (reduced to (insert
rate))(discontinued)?
If a majority of the electors voting on the question vote in
the affirmative, then, subject to the provisions of subsection
(g) of this Section, the tax shall be reduced or discontinued
as set forth in the question.
(h-10) A county board in a county where a tax has been
imposed under this Section pursuant to a referendum held on or
after August 23, 2019 (the effective date of Public Act
101-455) may, by ordinance or resolution, submit to the voters
of the county the question of reducing or discontinuing the
tax. In the ordinance or resolution, the county board shall
certify the question to the proper election authority in
accordance with the Election Code. The election authority must
submit the question in substantially the following form:
Shall the school facility and resources retailers'
occupation tax and service occupation tax (commonly
referred to as the school facility and resources sales
tax) currently imposed in (name of county) at a rate of

SB2201 - 89 - LRB103 28036 HLH 54415 b
(insert rate) be (reduced to (insert rate))
(discontinued)?
The election authority must record the votes as "Yes" or
"No".
If a majority of the electors voting on the question vote
in the affirmative, then, subject to the provisions of
subsection (g) of this Section, the tax shall be reduced or
discontinued as set forth in the question.
(i) This Section does not apply to Cook County.
(j) This Section may be cited as the County School
Facility and Resources Occupation Tax Law.
(Source: P.A. 101-10, eff. 6-5-19; 101-455, eff. 8-23-19;
101-604, eff. 12-13-19; 102-700, eff. 4-19-22; 102-1062, eff.
7-1-22; revised 8-10-22.)
Section 20. The Illinois Municipal Code is amended by
changing Sections 8-11-1, 8-11-1.3, and 8-11-6a as follows:
(65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax
Act. The corporate authorities of a home rule municipality may
impose a tax upon all persons engaged in the business of
selling tangible personal property, leasing tangible personal
property, or both selling and leasing tangible personal
property, other than an item of tangible personal property
titled or registered with an agency of this State's

SB2201 - 90 - LRB103 28036 HLH 54415 b
government, at retail in the municipality on the gross
receipts from these sales or leases made in the course of such
business. The tax shall not be imposed on the sale or lease of:
(1) tangible personal property titled or registered with an
agency of this State's government; (2) tangible personal
property subject to a personal property lease transaction tax
paid to the home rule municipality; (3) computer software; or
(4) tangible personal property subject to the Rental Purchase
Agreement Occupation and Use Tax Act. If imposed, the tax
shall only be imposed in 1/4% increments. On and after
September 1, 1991, this additional tax may not be imposed on
tangible personal property taxed at the 1% rate under the
Retailers' Occupation Tax Act (or at the 0% rate imposed under
this amendatory Act of the 102nd General Assembly). Beginning
December 1, 2019, this tax is not imposed on sales of aviation
fuel unless the tax revenue is expended for airport-related
purposes. If a municipality does not have an airport-related
purpose to which it dedicates aviation fuel tax revenue, then
aviation fuel is excluded from the tax. Each municipality must
comply with the certification requirements for airport-related
purposes under Section 2-22 of the Retailers' Occupation Tax
Act. For purposes of this Section, "airport-related purposes"
has the meaning ascribed in Section 6z-20.2 of the State
Finance Act. This exclusion for aviation fuel only applies for
so long as the revenue use requirements of 49 U.S.C. 47107(b)
and 49 U.S.C. 47133 are binding on the municipality. The

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changes made to this Section by this amendatory Act of the
101st General Assembly are a denial and limitation of home
rule powers and functions under subsection (g) of Section 6 of
Article VII of the Illinois Constitution. The tax imposed by a
home rule municipality under this Section and all civil
penalties that may be assessed as an incident of the tax shall
be collected and enforced by the State Department of Revenue.
The certificate of registration that is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act shall permit the retailer to engage in a business that is
taxable under any ordinance or resolution enacted pursuant to
this Section without registering separately with the
Department under such ordinance or resolution or under this
Section. The Department shall have full power to administer
and enforce this Section; to collect all taxes and penalties
due hereunder; to dispose of taxes and penalties so collected
in the manner hereinafter provided; and to determine all
rights to credit memoranda arising on account of the erroneous
payment of tax or penalty hereunder. In the administration of,
and compliance with, this Section the Department and persons
who are subject to this Section shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties and definitions of terms, and employ the same modes
of procedure, as are prescribed in Sections 1, 1a, 1d, 1e, 1f,
1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in respect to all

SB2201 - 92 - LRB103 28036 HLH 54415 b
provisions therein other than the State rate of tax), 2c, 3
(except as to the disposition of taxes and penalties
collected, and except that the retailer's discount is not
allowed for taxes paid on aviation fuel that are subject to the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l,
6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the Retailers'
Occupation Tax Act and Section 3-7 of the Uniform Penalty and
Interest Act, as fully as if those provisions were set forth
herein.
No tax may be imposed by a home rule municipality under
this Section unless the municipality also imposes a tax at the
same rate under Section 8-11-5 of this Act.
Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
seller's tax liability hereunder by separately stating that
tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax which sellers
are required to collect under the Use Tax Act, pursuant to such
bracket schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State

SB2201 - 93 - LRB103 28036 HLH 54415 b
Treasurer out of the home rule municipal retailers' occupation
tax fund or the Local Government Aviation Trust Fund, as
appropriate.
Except as otherwise provided in this paragraph, the
Department shall immediately pay over to the State Treasurer,
ex officio, as trustee, all taxes and penalties collected
hereunder for deposit into the Home Rule Municipal Retailers'
Occupation Tax Fund. Taxes and penalties collected on aviation
fuel sold on or after December 1, 2019, shall be immediately
paid over by the Department to the State Treasurer, ex
officio, as trustee, for deposit into the Local Government
Aviation Trust Fund. The Department shall only pay moneys into
the Local Government Aviation Trust Fund under this Section
for so long as the revenue use requirements of 49 U.S.C.
47107(b) and 49 U.S.C. 47133 are binding on the State.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for
sales within a STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the

SB2201 - 94 - LRB103 28036 HLH 54415 b
disbursement of stated sums of money to named municipalities,
the municipalities to be those from which retailers have paid
taxes or penalties hereunder to the Department during the
second preceding calendar month. The amount to be paid to each
municipality shall be the amount (not including credit
memoranda and not including taxes and penalties collected on
aviation fuel sold on or after December 1, 2019) collected
hereunder during the second preceding calendar month by the
Department plus an amount the Department determines is
necessary to offset any amounts that were erroneously paid to
a different taxing body, and not including an amount equal to
the amount of refunds made during the second preceding
calendar month by the Department on behalf of such
municipality, and not including any amount that the Department
determines is necessary to offset any amounts that were
payable to a different taxing body but were erroneously paid
to the municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund, less 1.5% of the
remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt by the
Comptroller of the disbursement certification to the
municipalities and the Tax Compliance and Administration Fund

SB2201 - 95 - LRB103 28036 HLH 54415 b
provided for in this Section to be given to the Comptroller by
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in the certification.
In addition to the disbursement required by the preceding
paragraph and in order to mitigate delays caused by
distribution procedures, an allocation shall, if requested, be
made within 10 days after January 14, 1991, and in November of
1991 and each year thereafter, to each municipality that
received more than $500,000 during the preceding fiscal year,
(July 1 through June 30) whether collected by the municipality
or disbursed by the Department as required by this Section.
Within 10 days after January 14, 1991, participating
municipalities shall notify the Department in writing of their
intent to participate. In addition, for the initial
distribution, participating municipalities shall certify to
the Department the amounts collected by the municipality for
each month under its home rule occupation and service
occupation tax during the period July 1, 1989 through June 30,
1990. The allocation within 10 days after January 14, 1991,
shall be in an amount equal to the monthly average of these
amounts, excluding the 2 months of highest receipts. The
monthly average for the period of July 1, 1990 through June 30,
1991 will be determined as follows: the amounts collected by
the municipality under its home rule occupation and service
occupation tax during the period of July 1, 1990 through

SB2201 - 96 - LRB103 28036 HLH 54415 b
September 30, 1990, plus amounts collected by the Department
and paid to such municipality through June 30, 1991, excluding
the 2 months of highest receipts. The monthly average for each
subsequent period of July 1 through June 30 shall be an amount
equal to the monthly distribution made to each such
municipality under the preceding paragraph during this period,
excluding the 2 months of highest receipts. The distribution
made in November 1991 and each year thereafter under this
paragraph and the preceding paragraph shall be reduced by the
amount allocated and disbursed under this paragraph in the
preceding period of July 1 through June 30. The Department
shall prepare and certify to the Comptroller for disbursement
the allocations made in accordance with this paragraph.
For the purpose of determining the local governmental unit
whose tax is applicable, a retail sale by a producer of coal or
other mineral mined in Illinois is a sale at retail at the
place where the coal or other mineral mined in Illinois is
extracted from the earth. This paragraph does not apply to
coal or other mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the United States Constitution as a sale
in interstate or foreign commerce.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the Constitution of the United States
may not be made the subject of taxation by this State.

SB2201 - 97 - LRB103 28036 HLH 54415 b
An ordinance or resolution imposing or discontinuing a tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of June, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of September next following the adoption and filing.
Beginning January 1, 1992, an ordinance or resolution imposing
or discontinuing the tax hereunder or effecting a change in
the rate thereof shall be adopted and a certified copy thereof
filed with the Department on or before the first day of July,
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of October next
following such adoption and filing. Beginning January 1, 1993,
an ordinance or resolution imposing or discontinuing the tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of October, whereupon the
Department shall proceed to administer and enforce this
Section as of the first day of January next following the
adoption and filing. However, a municipality located in a
county with a population in excess of 3,000,000 that elected
to become a home rule unit at the general primary election in
1994 may adopt an ordinance or resolution imposing the tax
under this Section and file a certified copy of the ordinance
or resolution with the Department on or before July 1, 1994.
The Department shall then proceed to administer and enforce

SB2201 - 98 - LRB103 28036 HLH 54415 b
this Section as of October 1, 1994. Beginning April 1, 1998, an
ordinance or resolution imposing or discontinuing the tax
hereunder or effecting a change in the rate thereof shall
either (i) be adopted and a certified copy thereof filed with
the Department on or before the first day of April, whereupon
the Department shall proceed to administer and enforce this
Section as of the first day of July next following the adoption
and filing; or (ii) be adopted and a certified copy thereof
filed with the Department on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce this Section as of the first day of January next
following the adoption and filing.
When certifying the amount of a monthly disbursement to a
municipality under this Section, the Department shall increase
or decrease the amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous
6 months from the time a misallocation is discovered.
Any unobligated balance remaining in the Municipal
Retailers' Occupation Tax Fund on December 31, 1989, which
fund was abolished by Public Act 85-1135, and all receipts of
municipal tax as a result of audits of liability periods prior
to January 1, 1990, shall be paid into the Local Government Tax
Fund for distribution as provided by this Section prior to the
enactment of Public Act 85-1135. All receipts of municipal tax
as a result of an assessment not arising from an audit, for

SB2201 - 99 - LRB103 28036 HLH 54415 b
liability periods prior to January 1, 1990, shall be paid into
the Local Government Tax Fund for distribution before July 1,
1990, as provided by this Section prior to the enactment of
Public Act 85-1135; and on and after July 1, 1990, all such
receipts shall be distributed as provided in Section 6z-18 of
the State Finance Act.
As used in this Section, "municipal" and "municipality"
means a city, village or incorporated town, including an
incorporated town that has superseded a civil township.
This Section shall be known and may be cited as the Home
Rule Municipal Retailers' Occupation Tax Act.
(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
(65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
Sec. 8-11-1.3. Non-Home Rule Municipal Retailers'
Occupation Tax Act. The corporate authorities of a non-home
rule municipality may impose a tax upon all persons engaged in
the business of selling tangible personal property, leasing
tangible personal property, or both selling and leasing
tangible personal property, other than on an item of tangible
personal property which is titled and registered by an agency
of this State's Government, at retail in the municipality for
expenditure on public infrastructure or for property tax
relief or both as defined in Section 8-11-1.2 if approved by
referendum as provided in Section 8-11-1.1, of the gross

SB2201 - 100 - LRB103 28036 HLH 54415 b
receipts from such sales or leases made in the course of such
business. The tax shall not be imposed on the sale or lease of:
(1) tangible personal property titled or registered with an
agency of this State's government; (2) tangible personal
property subject to a personal property lease transaction tax
paid to the home rule municipality; (3) computer software; or
(4) tangible personal property subject to the Rental Purchase
Agreement Occupation and Use Tax Act. If the tax is approved by
referendum on or after July 14, 2010 (the effective date of
Public Act 96-1057), the corporate authorities of a non-home
rule municipality may, until July 1, 2030, use the proceeds of
the tax for expenditure on municipal operations, in addition
to or in lieu of any expenditure on public infrastructure or
for property tax relief. The tax imposed may not be more than
1% and may be imposed only in 1/4% increments. The tax may not
be imposed on tangible personal property taxed at the 1% rate
under the Retailers' Occupation Tax Act (or at the 0% rate
imposed under this amendatory Act of the 102nd General
Assembly). Beginning December 1, 2019, this tax is not imposed
on sales of aviation fuel unless the tax revenue is expended
for airport-related purposes. If a municipality does not have
an airport-related purpose to which it dedicates aviation fuel
tax revenue, then aviation fuel is excluded from the tax. Each
municipality must comply with the certification requirements
for airport-related purposes under Section 2-22 of the
Retailers' Occupation Tax Act. For purposes of this Section,

SB2201 - 101 - LRB103 28036 HLH 54415 b
"airport-related purposes" has the meaning ascribed in Section
6z-20.2 of the State Finance Act. This exclusion for aviation
fuel only applies for so long as the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
municipality. The tax imposed by a municipality pursuant to
this Section and all civil penalties that may be assessed as an
incident thereof shall be collected and enforced by the State
Department of Revenue. The certificate of registration which
is issued by the Department to a retailer under the Retailers'
Occupation Tax Act shall permit such retailer to engage in a
business which is taxable under any ordinance or resolution
enacted pursuant to this Section without registering
separately with the Department under such ordinance or
resolution or under this Section. The Department shall have
full power to administer and enforce this Section; to collect
all taxes and penalties due hereunder; to dispose of taxes and
penalties so collected in the manner hereinafter provided, and
to determine all rights to credit memoranda, arising on
account of the erroneous payment of tax or penalty hereunder.
In the administration of, and compliance with, this Section,
the Department and persons who are subject to this Section
shall have the same rights, remedies, privileges, immunities,
powers and duties, and be subject to the same conditions,
restrictions, limitations, penalties and definitions of terms,
and employ the same modes of procedure, as are prescribed in
Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in

SB2201 - 102 - LRB103 28036 HLH 54415 b
respect to all provisions therein other than the State rate of
tax), 2c, 3 (except as to the disposition of taxes and
penalties collected, and except that the retailer's discount
is not allowed for taxes paid on aviation fuel that are subject
to the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j,
5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the
Retailers' Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act as fully as if those provisions were
set forth herein.
No municipality may impose a tax under this Section unless
the municipality also imposes a tax at the same rate under
Section 8-11-1.4 of this Code.
Persons subject to any tax imposed pursuant to the
authority granted in this Section may reimburse themselves for
their seller's tax liability hereunder by separately stating
such tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax which sellers
are required to collect under the Use Tax Act, pursuant to such
bracket schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in such
notification from the Department. Such refund shall be paid by

SB2201 - 103 - LRB103 28036 HLH 54415 b
the State Treasurer out of the non-home rule municipal
retailers' occupation tax fund or the Local Government
Aviation Trust Fund, as appropriate.
Except as otherwise provided, the Department shall
forthwith pay over to the State Treasurer, ex officio, as
trustee, all taxes and penalties collected hereunder for
deposit into the Non-Home Rule Municipal Retailers' Occupation
Tax Fund. Taxes and penalties collected on aviation fuel sold
on or after December 1, 2019, shall be immediately paid over by
the Department to the State Treasurer, ex officio, as trustee,
for deposit into the Local Government Aviation Trust Fund. The
Department shall only pay moneys into the Local Government
Aviation Trust Fund under this Section for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the municipality.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for
sales within a STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the

SB2201 - 104 - LRB103 28036 HLH 54415 b
disbursement of stated sums of money to named municipalities,
the municipalities to be those from which retailers have paid
taxes or penalties hereunder to the Department during the
second preceding calendar month. The amount to be paid to each
municipality shall be the amount (not including credit
memoranda and not including taxes and penalties collected on
aviation fuel sold on or after December 1, 2019) collected
hereunder during the second preceding calendar month by the
Department plus an amount the Department determines is
necessary to offset any amounts which were erroneously paid to
a different taxing body, and not including an amount equal to
the amount of refunds made during the second preceding
calendar month by the Department on behalf of such
municipality, and not including any amount which the
Department determines is necessary to offset any amounts which
were payable to a different taxing body but were erroneously
paid to the municipality, and not including any amounts that
are transferred to the STAR Bonds Revenue Fund, less 1.5% of
the remainder, which the Department shall transfer into the
Tax Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt, by the
Comptroller, of the disbursement certification to the
municipalities and the Tax Compliance and Administration Fund

SB2201 - 105 - LRB103 28036 HLH 54415 b
provided for in this Section to be given to the Comptroller by
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in such certification.
For the purpose of determining the local governmental unit
whose tax is applicable, a retail sale, by a producer of coal
or other mineral mined in Illinois, is a sale at retail at the
place where the coal or other mineral mined in Illinois is
extracted from the earth. This paragraph does not apply to
coal or other mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the Federal Constitution as a sale in
interstate or foreign commerce.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the constitution of the United States
may not be made the subject of taxation by this State.
When certifying the amount of a monthly disbursement to a
municipality under this Section, the Department shall increase
or decrease such amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous
6 months from the time a misallocation is discovered.
The Department of Revenue shall implement Public Act
91-649 so as to collect the tax on and after January 1, 2002.
As used in this Section, "municipal" and "municipality"

SB2201 - 106 - LRB103 28036 HLH 54415 b
mean a city, village, or incorporated town, including an
incorporated town which has superseded a civil township.
This Section shall be known and may be cited as the
Non-Home Rule Municipal Retailers' Occupation Tax Act.
(Source: P.A. 101-10, eff. 6-5-19; 101-47, eff. 1-1-20;
101-81, eff. 7-12-19; 101-604, eff. 12-13-19; 102-700, eff.
4-19-22.)
(65 ILCS 5/8-11-6a) (from Ch. 24, par. 8-11-6a)
Sec. 8-11-6a. Home rule municipalities; preemption of
certain taxes. Except as provided in Sections 8-11-1, 8-11-5,
8-11-6, 8-11-6b, 8-11-6c, 8-11-23, and 11-74.3-6 on and after
September 1, 1990, no home rule municipality has the authority
to impose, pursuant to its home rule authority, a retailer's
occupation tax, service occupation tax, use tax, sales tax or
other tax on the use, sale or purchase of tangible personal
property based on the gross receipts from such sales or the
selling or purchase price of said tangible personal property.
Notwithstanding the foregoing, this Section does not preempt
any home rule imposed tax such as the following: (1) a tax on
alcoholic beverages, whether based on gross receipts, volume
sold or any other measurement; (2) a tax based on the number of
units of cigarettes or tobacco products (provided, however,
that a home rule municipality that has not imposed a tax based
on the number of units of cigarettes or tobacco products
before July 1, 1993, shall not impose such a tax after that

SB2201 - 107 - LRB103 28036 HLH 54415 b
date); (3) a tax, however measured, based on the use of a hotel
or motel room or similar facility; (4) a tax, however
measured, on the sale or transfer of real property; (5) a tax,
however measured, on lease receipts, provided that, on and
after the effective date of this amendatory Act of the 103rd
General Assembly, no home rule municipality may impose a tax,
however measured, on lease receipts that are subject to the
tax under the Retailers' Occupation Tax Act, except to the
extent that those taxes are authorized by the various
locally-imposed retailers' occupation tax provisions of law
and are administered and collected by the Department of
Revenue; (6) a tax on food prepared for immediate consumption
and on alcoholic beverages sold by a business which provides
for on premise consumption of said food or alcoholic
beverages; or (7) other taxes not based on the selling or
purchase price or gross receipts from the use, sale or
purchase of tangible personal property. This Section does not
preempt a home rule municipality with a population of more
than 2,000,000 from imposing a tax, however measured, on the
use, for consideration, of a parking lot, garage, or other
parking facility. This Section is not intended to affect any
existing tax on food and beverages prepared for immediate
consumption on the premises where the sale occurs, or any
existing tax on alcoholic beverages, or any existing tax
imposed on the charge for renting a hotel or motel room, which
was in effect January 15, 1988, or any extension of the

SB2201 - 108 - LRB103 28036 HLH 54415 b
effective date of such an existing tax by ordinance of the
municipality imposing the tax, which extension is hereby
authorized, in any non-home rule municipality in which the
imposition of such a tax has been upheld by judicial
determination, nor is this Section intended to preempt the
authority granted by Public Act 85-1006. On and after December
1, 2019, no home rule municipality has the authority to
impose, pursuant to its home rule authority, a tax, however
measured, on sales of aviation fuel, as defined in Section 3 of
the Retailers' Occupation Tax Act, unless the tax is not
subject to the revenue use requirements of 49 U.S.C. 47107(b)
and 49 U.S.C. 47133, or unless the tax revenue is expended for
airport-related purposes. For purposes of this Section,
"airport-related purposes" has the meaning ascribed in Section
6z-20.2 of the State Finance Act. Aviation fuel shall be
excluded from tax only if, and for so long as, the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the municipality. This Section is a limitation,
pursuant to subsection (g) of Section 6 of Article VII of the
Illinois Constitution, on the power of home rule units to tax.
The changes made to this Section by Public Act 101-10 are a
denial and limitation of home rule powers and functions under
subsection (g) of Section 6 of Article VII of the Illinois
Constitution.
(Source: P.A. 101-10, eff. 6-5-19; 101-27, eff. 6-25-19;
101-593, eff. 12-4-19.)

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Section 25. The Civic Center Code is amended by changing
Section 245-12 as follows:
(70 ILCS 200/245-12)
Sec. 245-12. Use and occupation taxes.
(a) The Authority may adopt a resolution that authorizes a
referendum on the question of whether the Authority shall be
authorized to impose a retailers' occupation tax, a service
occupation tax, and a use tax in one-quarter percent
increments at a rate not to exceed 1%. The Authority shall
certify the question to the proper election authorities who
shall submit the question to the voters of the metropolitan
area at the next regularly scheduled election in accordance
with the general election law. The question shall be in
substantially the following form:
"Shall the Salem Civic Center Authority be authorized to
impose a retailers' occupation tax, a service occupation
tax, and a use tax at the rate of (rate) for the sole
purpose of obtaining funds for the support, construction,
maintenance, or financing of a facility of the Authority?"
Votes shall be recorded as "yes" or "no".
If a majority of all votes cast on the proposition are in
favor of the proposition, the Authority is authorized to
impose the tax.
(b) The Authority shall impose the retailers' occupation

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tax upon all persons engaged in the business of selling
tangible personal property, leasing tangible personal
property, or both selling and leasing tangible personal
property at retail in the metropolitan area, at the rate
approved by referendum, on the gross receipts from the sales
or leases made in the course of such business within the
metropolitan area. The tax shall not be imposed on the sale or
lease of: (1) tangible personal property titled or registered
with an agency of this State's government; (2) tangible
personal property subject to a personal property lease
transaction tax paid to the home rule municipality; (3)
computer software; or (4) tangible personal property subject
to the Rental Purchase Agreement Occupation and Use Tax Act.
Beginning December 1, 2019 and through December 31, 2020, this
tax is not imposed on sales of aviation fuel unless the tax
revenue is expended for airport-related purposes. If the
Authority does not have an airport-related purpose to which it
dedicates aviation fuel tax revenue, then aviation fuel is
excluded from the tax. The Authority must comply with the
certification requirements for airport-related purposes under
Section 2-22 of the Retailers' Occupation Tax Act. For
purposes of this Section, "airport-related purposes" has the
meaning ascribed in Section 6z-20.2 of the State Finance Act.
Beginning January 1, 2021, this tax is not imposed on sales of
aviation fuel for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the

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Authority.
The tax imposed under this Section and all civil penalties
that may be assessed as an incident thereof shall be collected
and enforced by the Department of Revenue. The Department has
full power to administer and enforce this Section; to collect
all taxes and penalties so collected in the manner provided in
this Section; and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty
hereunder. In the administration of, and compliance with, this
Section, the Department and persons who are subject to this
Section shall (i) have the same rights, remedies, privileges,
immunities, powers and duties, (ii) be subject to the same
conditions, restrictions, limitations, penalties, exclusions,
exemptions, and definitions of terms, and (iii) employ the
same modes of procedure as are prescribed in Sections 1, 1a,
1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10
(in respect to all provisions therein other than the State
rate of tax), 2-12, 2-15 through 2-70, 2a, 2b, 2c, 3 (except as
to the disposition of taxes and penalties collected and
provisions related to quarter monthly payments, and except
that the retailer's discount is not allowed for taxes paid on
aviation fuel that are subject to the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c,
5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11,
11a, 12, and 13 of the Retailers' Occupation Tax Act and
Section 3-7 of the Uniform Penalty and Interest Act, as fully

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as if those provisions were set forth in this subsection.
Persons subject to any tax imposed under this subsection
may reimburse themselves for their seller's tax liability by
separately stating the tax as an additional charge, which
charge may be stated in combination, in a single amount, with
State taxes that sellers are required to collect, in
accordance with such bracket schedules as the Department may
prescribe.
Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the tax fund referenced under paragraph (g)
of this Section or the Local Government Aviation Trust Fund,
as appropriate.
If a tax is imposed under this subsection (b), a tax shall
also be imposed at the same rate under subsections (c) and (d)
of this Section.
For the purpose of determining whether a tax authorized
under this Section is applicable, a retail sale, by a producer
of coal or other mineral mined in Illinois, is a sale at retail
at the place where the coal or other mineral mined in Illinois
is extracted from the earth. This paragraph does not apply to
coal or other mineral when it is delivered or shipped by the

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seller to the purchaser at a point outside Illinois so that the
sale is exempt under the Federal Constitution as a sale in
interstate or foreign commerce.
Nothing in this Section shall be construed to authorize
the Authority to impose a tax upon the privilege of engaging in
any business which under the Constitution of the United States
may not be made the subject of taxation by this State.
(c) If a tax has been imposed under subsection (b), a
service occupation tax shall also be imposed at the same rate
upon all persons engaged, in the metropolitan area, in the
business of making sales of service, who, as an incident to
making those sales of service, transfer tangible personal
property within the metropolitan area as an incident to a sale
of service. The tax imposed under this subsection and all
civil penalties that may be assessed as an incident thereof
shall be collected and enforced by the Department of Revenue.
Beginning December 1, 2019 and through December 31, 2020,
this tax is not imposed on sales of aviation fuel unless the
tax revenue is expended for airport-related purposes. If the
Authority does not have an airport-related purpose to which it
dedicates aviation fuel tax revenue, then aviation fuel is
excluded from the tax. The Authority must comply with the
certification requirements for airport-related purposes under
Section 2-22 of the Retailers' Occupation Tax Act. Beginning
January 1, 2021, this tax is not imposed on sales of aviation
fuel for so long as the revenue use requirements of 49 U.S.C.

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

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requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 11,
12 (except the reference therein to Section 2b of the
Retailers' Occupation Tax Act), 13 (except that any reference
to the State shall mean the Authority), 15, 16, 17, 18, 19 and
20 of the Service Occupation Tax Act and Section 3-7 of the
Uniform Penalty and Interest Act, as fully as if those
provisions were set forth herein.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability by separately stating the tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State tax that servicemen are
authorized to collect under the Service Use Tax Act, in
accordance with such bracket schedules as the Department may
prescribe.
Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the tax fund referenced under paragraph (g)
of this Section or the Local Government Aviation Trust Fund,
as appropriate.
Nothing in this paragraph shall be construed to authorize
the Authority to impose a tax upon the privilege of engaging in

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any business which under the Constitution of the United States
may not be made the subject of taxation by the State.
(d) If a tax has been imposed under subsection (b), a use
tax shall also be imposed at the same rate upon the privilege
of using, in the metropolitan area, any item of tangible
personal property that is purchased outside the metropolitan
area at retail from a retailer, and that is titled or
registered at a location within the metropolitan area with an
agency of this State's government. "Selling price" is defined
as in the Use Tax Act. The tax shall be collected from persons
whose Illinois address for titling or registration purposes is
given as being in the metropolitan area. The tax shall be
collected by the Department of Revenue for the Authority. The
tax must be paid to the State, or an exemption determination
must be obtained from the Department of Revenue, before the
title or certificate of registration for the property may be
issued. The tax or proof of exemption may be transmitted to the
Department by way of the State agency with which, or the State
officer with whom, the tangible personal property must be
titled or registered if the Department and the State agency or
State officer determine that this procedure will expedite the
processing of applications for title or registration.
The Department has full power to administer and enforce
this paragraph; to collect all taxes, penalties and interest
due hereunder; to dispose of taxes, penalties and interest so
collected in the manner hereinafter provided; and to determine

SB2201 - 117 - LRB103 28036 HLH 54415 b
all rights to credit memoranda or refunds arising on account
of the erroneous payment of tax, penalty or interest
hereunder. In the administration of, and compliance with, this
subsection, the Department and persons who are subject to this
paragraph shall (i) have the same rights, remedies,
privileges, immunities, powers, and duties, (ii) be subject to
the same conditions, restrictions, limitations, penalties,
exclusions, exemptions, and definitions of terms, and (iii)
employ the same modes of procedure as are prescribed in
Sections 2 (except the definition of "retailer maintaining a
place of business in this State"), 3, 3-5, 3-10, 3-45, 3-55,
3-65, 3-70, 3-85, 3a, 4, 6, 7, 8 (except that the jurisdiction
to which the tax shall be a debt to the extent indicated in
that Section 8 shall be the Authority), 9 (except provisions
relating to quarter monthly payments), 10, 11, 12, 12a, 12b,
13, 14, 15, 19, 20, 21, and 22 of the Use Tax Act and Section
3-7 of the Uniform Penalty and Interest Act, that are not
inconsistent with this paragraph, as fully as if those
provisions were set forth herein.
Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the tax fund referenced under paragraph (g)

SB2201 - 118 - LRB103 28036 HLH 54415 b
of this Section.
(e) A certificate of registration issued by the State
Department of Revenue to a retailer under the Retailers'
Occupation Tax Act or under the Service Occupation Tax Act
shall permit the registrant to engage in a business that is
taxed under the tax imposed under paragraphs (b), (c), or (d)
of this Section and no additional registration shall be
required. A certificate issued under the Use Tax Act or the
Service Use Tax Act shall be applicable with regard to any tax
imposed under paragraph (c) of this Section.
(f) The results of any election authorizing a proposition
to impose a tax under this Section or effecting a change in the
rate of tax shall be certified by the proper election
authorities and filed with the Illinois Department on or
before the first day of April. In addition, an ordinance
imposing, discontinuing, or effecting a change in the rate of
tax under this Section shall be adopted and a certified copy
thereof filed with the Department on or before the first day of
April. After proper receipt of such certifications, the
Department shall proceed to administer and enforce this
Section as of the first day of July next following such
adoption and filing.
(g) Except as otherwise provided, the Department of
Revenue shall, upon collecting any taxes and penalties as
provided in this Section, pay the taxes and penalties over to
the State Treasurer as trustee for the Authority. The taxes

SB2201 - 119 - LRB103 28036 HLH 54415 b
and penalties shall be held in a trust fund outside the State
Treasury. Taxes and penalties collected on aviation fuel sold
on or after December 1, 2019 and through December 31, 2020,
shall be immediately paid over by the Department to the State
Treasurer, ex officio, as trustee, for deposit into the Local
Government Aviation Trust Fund. The Department shall only pay
moneys into the Local Government Aviation Trust Fund under
this Section for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
District. On or before the 25th day of each calendar month, the
Department of Revenue shall prepare and certify to the
Comptroller of the State of Illinois the amount to be paid to
the Authority, which shall be the balance in the fund, less any
amount determined by the Department to be necessary for the
payment of refunds and not including taxes and penalties
collected on aviation fuel sold on or after December 1, 2019.
Within 10 days after receipt by the Comptroller of the
certification of the amount to be paid to the Authority, the
Comptroller shall cause an order to be drawn for payment for
the amount in accordance with the directions contained in the
certification. Amounts received from the tax imposed under
this Section shall be used only for the support, construction,
maintenance, or financing of a facility of the Authority.
(h) When certifying the amount of a monthly disbursement
to the Authority under this Section, the Department shall
increase or decrease the amounts by an amount necessary to

SB2201 - 120 - LRB103 28036 HLH 54415 b
offset any miscalculation of previous disbursements. The
offset amount shall be the amount erroneously disbursed within
the previous 6 months from the time a miscalculation is
discovered.
(i) This Section may be cited as the Salem Civic Center Use
and Occupation Tax Law.
(Source: P.A. 101-10, eff. 6-5-19; 101-604, eff. 12-13-19.)
Section 30. The Flood Prevention District Act is amended
by changing Section 25 as follows:
(70 ILCS 750/25)
Sec. 25. Flood prevention retailers' and service
occupation taxes.
(a) If the Board of Commissioners of a flood prevention
district determines that an emergency situation exists
regarding levee repair or flood prevention, and upon an
ordinance confirming the determination adopted by the
affirmative vote of a majority of the members of the county
board of the county in which the district is situated, the
county may impose a flood prevention retailers' occupation tax
upon all persons engaged in the business of selling tangible
personal property, leasing tangible personal property, or both
selling and leasing tangible personal property at retail
within the territory of the district to provide revenue to pay
the costs of providing emergency levee repair and flood

SB2201 - 121 - LRB103 28036 HLH 54415 b
prevention and to secure the payment of bonds, notes, and
other evidences of indebtedness issued under this Act for a
period not to exceed 25 years or as required to repay the
bonds, notes, and other evidences of indebtedness issued under
this Act. The tax shall not be imposed on the sale or lease of:
(1) tangible personal property titled or registered with an
agency of this State's government; (2) tangible personal
property subject to a personal property lease transaction tax
paid to the home rule municipality; (3) computer software; or
(4) tangible personal property subject to the Rental Purchase
Agreement Occupation and Use Tax Act. The tax rate shall be
0.25% of the gross receipts from all taxable sales or leases
made in the course of that business. Beginning December 1,
2019 and through December 31, 2020, this tax is not imposed on
sales of aviation fuel unless the tax revenue is expended for
airport-related purposes. If the District does not have an
airport-related purpose to which it dedicates aviation fuel
tax revenue, then aviation fuel is excluded from the tax. The
County must comply with the certification requirements for
airport-related purposes under Section 2-22 of the Retailers'
Occupation Tax Act. The tax imposed under this Section and all
civil penalties that may be assessed as an incident thereof
shall be collected and enforced by the State Department of
Revenue. The Department shall have full power to administer
and enforce this Section; to collect all taxes and penalties
so collected in the manner hereinafter provided; and to

SB2201 - 122 - LRB103 28036 HLH 54415 b
determine all rights to credit memoranda arising on account of
the erroneous payment of tax or penalty hereunder.
For purposes of this Act, "airport-related purposes" has
the meaning ascribed in Section 6z-20.2 of the State Finance
Act. Beginning January 1, 2021, this tax is not imposed on
sales of aviation fuel for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the District.
In the administration of and compliance with this
subsection, the Department and persons who are subject to this
subsection (i) have the same rights, remedies, privileges,
immunities, powers, and duties, (ii) are subject to the same
conditions, restrictions, limitations, penalties, and
definitions of terms, and (iii) shall employ the same modes of
procedure as are set forth in Sections 1 through 1o, 2 through
2-70 (in respect to all provisions contained in those Sections
other than the State rate of tax), 2a through 2h, 3 (except as
to the disposition of taxes and penalties collected, and
except that the retailer's discount is not allowed for taxes
paid on aviation fuel that are subject to the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5,
5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5l, 6, 6a, 6b, 6c, 6d, 7,
8, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax
Act and all provisions of the Uniform Penalty and Interest Act
as if those provisions were set forth in this subsection.
Persons subject to any tax imposed under this Section may

SB2201 - 123 - LRB103 28036 HLH 54415 b
reimburse themselves for their seller's tax liability
hereunder by separately stating the tax as an additional
charge, which charge may be stated in combination in a single
amount with State taxes that sellers are required to collect
under the Use Tax Act, under any bracket schedules the
Department may prescribe.
If a tax is imposed under this subsection (a), a tax shall
also be imposed under subsection (b) of this Section.
(b) If a tax has been imposed under subsection (a), a flood
prevention service occupation tax shall also be imposed upon
all persons engaged within the territory of the district in
the business of making sales of service, who, as an incident to
making the sales of service, transfer tangible personal
property, either in the form of tangible personal property or
in the form of real estate as an incident to a sale of service
to provide revenue to pay the costs of providing emergency
levee repair and flood prevention and to secure the payment of
bonds, notes, and other evidences of indebtedness issued under
this Act for a period not to exceed 25 years or as required to
repay the bonds, notes, and other evidences of indebtedness.
The tax rate shall be 0.25% of the selling price of all
tangible personal property transferred. Beginning December 1,
2019 and through December 31, 2020, this tax is not imposed on
sales of aviation fuel unless the tax revenue is expended for
airport-related purposes. If the District does not have an
airport-related purpose to which it dedicates aviation fuel

SB2201 - 124 - LRB103 28036 HLH 54415 b
tax revenue, then aviation fuel is excluded from the tax. The
County must comply with the certification requirements for
airport-related purposes under Section 2-22 of the Retailers'
Occupation Tax Act. For purposes of this Act, "airport-related
purposes" has the meaning ascribed in Section 6z-20.2 of the
State Finance Act. Beginning January 1, 2021, this tax is not
imposed on sales of aviation fuel for so long as the revenue
use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the District.
The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the State Department of Revenue. The
Department shall have full power to administer and enforce
this subsection; to collect all taxes and penalties due
hereunder; to dispose of taxes and penalties collected in the
manner hereinafter provided; and to determine all rights to
credit memoranda arising on account of the erroneous payment
of tax or penalty hereunder.
In the administration of and compliance with this
subsection, the Department and persons who are subject to this
subsection shall (i) have the same rights, remedies,
privileges, immunities, powers, and duties, (ii) be subject to
the same conditions, restrictions, limitations, penalties, and
definitions of terms, and (iii) employ the same modes of
procedure as are set forth in Sections 2 (except that the
reference to State in the definition of supplier maintaining a

SB2201 - 125 - LRB103 28036 HLH 54415 b
place of business in this State means the district), 2a
through 2d, 3 through 3-50 (in respect to all provisions
contained in those Sections other than the State rate of tax),
4 (except that the reference to the State shall be to the
district), 5, 7, 8 (except that the jurisdiction to which the
tax is a debt to the extent indicated in that Section 8 is the
district), 9 (except as to the disposition of taxes and
penalties collected, and except that the retailer's discount
is not allowed for taxes paid on aviation fuel that are subject
to the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133), 10, 11, 12 (except the reference therein to
Section 2b of the Retailers' Occupation Tax Act), 13 (except
that any reference to the State means the district), Section
15, 16, 17, 18, 19, and 20 of the Service Occupation Tax Act
and all provisions of the Uniform Penalty and Interest Act, as
fully as if those provisions were set forth herein.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability hereunder by separately stating the
tax as an additional charge, that charge may be stated in
combination in a single amount with State tax that servicemen
are authorized to collect under the Service Use Tax Act, under
any bracket schedules the Department may prescribe.
(c) The taxes imposed in subsections (a) and (b) may not be
imposed on personal property titled or registered with an
agency of the State or on personal property taxed at the 1%

SB2201 - 126 - LRB103 28036 HLH 54415 b
rate under the Retailers' Occupation Tax Act and the Service
Occupation Tax Act (or at the 0% rate imposed under this
amendatory Act of the 102nd General Assembly).
(d) Nothing in this Section shall be construed to
authorize the district to impose a tax upon the privilege of
engaging in any business that under the Constitution of the
United States may not be made the subject of taxation by the
State.
(e) The certificate of registration that is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act or a serviceman under the Service Occupation Tax Act
permits the retailer or serviceman to engage in a business
that is taxable without registering separately with the
Department under an ordinance or resolution under this
Section.
(f) Except as otherwise provided, the Department shall
immediately pay over to the State Treasurer, ex officio, as
trustee, all taxes and penalties collected under this Section
to be deposited into the Flood Prevention Occupation Tax Fund,
which shall be an unappropriated trust fund held outside the
State treasury. Taxes and penalties collected on aviation fuel
sold on or after December 1, 2019 and through December 31,
2020, shall be immediately paid over by the Department to the
State Treasurer, ex officio, as trustee, for deposit into the
Local Government Aviation Trust Fund. The Department shall
only pay moneys into the Local Government Aviation Trust Fund

SB2201 - 127 - LRB103 28036 HLH 54415 b
under this Act for so long as the revenue use requirements of
49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
District.
On or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to the counties from
which retailers or servicemen have paid taxes or penalties to
the Department during the second preceding calendar month. The
amount to be paid to each county is equal to the amount (not
including credit memoranda and not including taxes and
penalties collected on aviation fuel sold on or after December
1, 2019 and through December 31, 2020) collected from the
county under this Section during the second preceding calendar
month by the Department, (i) less 2% of that amount (except the
amount collected on aviation fuel sold on or after December 1,
2019 and through December 31, 2020), which shall be deposited
into the Tax Compliance and Administration Fund and shall be
used by the Department in administering and enforcing the
provisions of this Section on behalf of the county, (ii) plus
an amount that the Department determines is necessary to
offset any amounts that were erroneously paid to a different
taxing body; (iii) less an amount equal to the amount of
refunds made during the second preceding calendar month by the
Department on behalf of the county; and (iv) less any amount
that the Department determines is necessary to offset any
amounts that were payable to a different taxing body but were

SB2201 - 128 - LRB103 28036 HLH 54415 b
erroneously paid to the county. When certifying the amount of
a monthly disbursement to a county under this Section, the
Department shall increase or decrease the amounts by an amount
necessary to offset any miscalculation of previous
disbursements within the previous 6 months from the time a
miscalculation is discovered.
Within 10 days after receipt by the Comptroller from the
Department of the disbursement certification to the counties
provided for in this Section, the Comptroller shall cause the
orders to be drawn for the respective amounts in accordance
with directions contained in the certification.
If the Department determines that a refund should be made
under this Section to a claimant instead of issuing a credit
memorandum, then the Department shall notify the Comptroller,
who shall cause the order to be drawn for the amount specified
and to the person named in the notification from the
Department. The refund shall be paid by the Treasurer out of
the Flood Prevention Occupation Tax Fund or the Local
Government Aviation Trust Fund, as appropriate.
(g) If a county imposes a tax under this Section, then the
county board shall, by ordinance, discontinue the tax upon the
payment of all indebtedness of the flood prevention district.
The tax shall not be discontinued until all indebtedness of
the District has been paid.
(h) Any ordinance imposing the tax under this Section, or
any ordinance that discontinues the tax, must be certified by

SB2201 - 129 - LRB103 28036 HLH 54415 b
the county clerk and filed with the Illinois Department of
Revenue either (i) on or before the first day of April,
whereupon the Department shall proceed to administer and
enforce the tax or change in the rate as of the first day of
July next following the filing; or (ii) on or before the first
day of October, whereupon the Department shall proceed to
administer and enforce the tax or change in the rate as of the
first day of January next following the filing.
(j) County Flood Prevention Occupation Tax Fund. All
proceeds received by a county from a tax distribution under
this Section must be maintained in a special fund known as the
[name of county] flood prevention occupation tax fund. The
county shall, at the direction of the flood prevention
district, use moneys in the fund to pay the costs of providing
emergency levee repair and flood prevention and to pay bonds,
notes, and other evidences of indebtedness issued under this
Act.
(k) This Section may be cited as the Flood Prevention
Occupation Tax Law.
(Source: P.A. 101-10, eff. 6-5-19; 101-604, eff. 12-13-19;
102-700, eff. 4-19-22.)
Section 35. The Local Mass Transit District Act is amended
by changing Section 5.01 as follows:
(70 ILCS 3610/5.01) (from Ch. 111 2/3, par. 355.01)

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Sec. 5.01. Metro East Mass Transit District; use and
occupation taxes.
(a) The Board of Trustees of any Metro East Mass Transit
District may, by ordinance adopted with the concurrence of
two-thirds of the then trustees, impose throughout the
District any or all of the taxes and fees provided in this
Section. Except as otherwise provided, all taxes and fees
imposed under this Section shall be used only for public mass
transportation systems, and the amount used to provide mass
transit service to unserved areas of the District shall be in
the same proportion to the total proceeds as the number of
persons residing in the unserved areas is to the total
population of the District. Except as otherwise provided in
this Act, taxes imposed under this Section and civil penalties
imposed incident thereto shall be collected and enforced by
the State Department of Revenue. The Department shall have the
power to administer and enforce the taxes and to determine all
rights for refunds for erroneous payments of the taxes.
(b) The Board may impose a Metro East Mass Transit
District Retailers' Occupation Tax upon all persons engaged in
the business of selling tangible personal property, leasing
tangible personal property, or both selling and leasing
tangible personal property at retail in the district at a rate
of 1/4 of 1%, or as authorized under subsection (d-5) of this
Section, of the gross receipts from the sales or leases made in
the course of such business within the district, except that

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the rate of tax imposed under this Section on sales of aviation
fuel on or after December 1, 2019 shall be 0.25% in Madison
County unless the Metro-East Mass Transit District in Madison
County has an "airport-related purpose" and any additional
amount authorized under subsection (d-5) is expended for
airport-related purposes. If there is no airport-related
purpose to which aviation fuel tax revenue is dedicated, then
aviation fuel is excluded from any additional amount
authorized under subsection (d-5). The rate in St. Clair
County shall be 0.25% unless the Metro-East Mass Transit
District in St. Clair County has an "airport-related purpose"
and the additional 0.50% of the 0.75% tax on aviation fuel
imposed in that County is expended for airport-related
purposes. If there is no airport-related purpose to which
aviation fuel tax revenue is dedicated, then aviation fuel is
excluded from the additional 0.50% of the 0.75% tax. The tax
shall not be imposed on the sale or lease of: (1) tangible
personal property titled or registered with an agency of this
State's government; (2) tangible personal property subject to
a personal property lease transaction tax paid to the home
rule municipality; (3) computer software; or (4) tangible
personal property subject to the Rental Purchase Agreement
Occupation and Use Tax Act.
The Board must comply with the certification requirements
for airport-related purposes under Section 2-22 of the
Retailers' Occupation Tax Act. For purposes of this Section,

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"airport-related purposes" has the meaning ascribed in Section
6z-20.2 of the State Finance Act. This exclusion for aviation
fuel only applies for so long as the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
District.
The tax imposed under this Section and all civil penalties
that may be assessed as an incident thereof shall be collected
and enforced by the State Department of Revenue. The
Department shall have full power to administer and enforce
this Section; to collect all taxes and penalties so collected
in the manner hereinafter provided; and to determine all
rights to credit memoranda arising on account of the erroneous
payment of tax or penalty hereunder. In the administration of,
and compliance with, this Section, the Department and persons
who are subject to this Section shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions and definitions of terms and
employ the same modes of procedure, as are prescribed in
Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65
(in respect to all provisions therein other than the State
rate of tax), 2c, 3 (except as to the disposition of taxes and
penalties collected, and except that the retailer's discount
is not allowed for taxes paid on aviation fuel that are subject
to the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,

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5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12, 13, and 14 of the
Retailers' Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act, as fully as if those provisions were
set forth herein.
Persons subject to any tax imposed under the Section may
reimburse themselves for their seller's tax liability
hereunder by separately stating the tax as an additional
charge, which charge may be stated in combination, in a single
amount, with State taxes that sellers are required to collect
under the Use Tax Act, in accordance with such bracket
schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Metro East Mass Transit District tax fund
established under paragraph (h) of this Section or the Local
Government Aviation Trust Fund, as appropriate.
If a tax is imposed under this subsection (b), a tax shall
also be imposed under subsections (c) and (d) of this Section.
For the purpose of determining whether a tax authorized
under this Section is applicable, a retail sale, by a producer
of coal or other mineral mined in Illinois, is a sale at retail
at the place where the coal or other mineral mined in Illinois

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is extracted from the earth. This paragraph does not apply to
coal or other mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the Federal Constitution as a sale in
interstate or foreign commerce.
No tax shall be imposed or collected under this subsection
on the sale of a motor vehicle in this State to a resident of
another state if that motor vehicle will not be titled in this
State.
Nothing in this Section shall be construed to authorize
the Metro East Mass Transit District to impose a tax upon the
privilege of engaging in any business which under the
Constitution of the United States may not be made the subject
of taxation by this State.
(c) If a tax has been imposed under subsection (b), a Metro
East Mass Transit District Service Occupation Tax shall also
be imposed upon all persons engaged, in the district, in the
business of making sales of service, who, as an incident to
making those sales of service, transfer tangible personal
property within the District, either in the form of tangible
personal property or in the form of real estate as an incident
to a sale of service. The tax rate shall be 1/4%, or as
authorized under subsection (d-5) of this Section, of the
selling price of tangible personal property so transferred
within the district, except that the rate of tax imposed in
these Counties under this Section on sales of aviation fuel on

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

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Department shall have full power to administer and enforce
this paragraph; to collect all taxes and penalties due
hereunder; to dispose of taxes and penalties so collected in
the manner hereinafter provided; and to determine all rights
to credit memoranda arising on account of the erroneous
payment of tax or penalty hereunder. In the administration of,
and compliance with this paragraph, the Department and persons
who are subject to this paragraph shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions and definitions of terms and
employ the same modes of procedure as are prescribed in
Sections 1a-1, 2 (except that the reference to State in the
definition of supplier maintaining a place of business in this
State shall mean the Authority), 2a, 3 through 3-50 (in
respect to all provisions therein other than the State rate of
tax), 4 (except that the reference to the State shall be to the
Authority), 5, 7, 8 (except that the jurisdiction to which the
tax shall be a debt to the extent indicated in that Section 8
shall be the District), 9 (except as to the disposition of
taxes and penalties collected, and except that the returned
merchandise credit for this tax may not be taken against any
State tax, and except that the retailer's discount is not
allowed for taxes paid on aviation fuel that are subject to the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133), 10, 11, 12 (except the reference therein to Section 2b

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of the Retailers' Occupation Tax Act), 13 (except that any
reference to the State shall mean the District), the first
paragraph of Section 15, 16, 17, 18, 19 and 20 of the Service
Occupation Tax Act and Section 3-7 of the Uniform Penalty and
Interest Act, as fully as if those provisions were set forth
herein.
Persons subject to any tax imposed under the authority
granted in this paragraph may reimburse themselves for their
serviceman's tax liability hereunder by separately stating the
tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax that
servicemen are authorized to collect under the Service Use Tax
Act, in accordance with such bracket schedules as the
Department may prescribe.
Whenever the Department determines that a refund should be
made under this paragraph to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Metro East Mass Transit District tax fund
established under paragraph (h) of this Section or the Local
Government Aviation Trust Fund, as appropriate.
Nothing in this paragraph shall be construed to authorize
the District to impose a tax upon the privilege of engaging in
any business which under the Constitution of the United States

SB2201 - 138 - LRB103 28036 HLH 54415 b
may not be made the subject of taxation by the State.
(d) If a tax has been imposed under subsection (b), a Metro
East Mass Transit District Use Tax shall also be imposed upon
the privilege of using, in the district, any item of tangible
personal property that is purchased outside the district at
retail from a retailer, and that is titled or registered with
an agency of this State's government, at a rate of 1/4%, or as
authorized under subsection (d-5) of this Section, of the
selling price of the tangible personal property within the
District, as "selling price" is defined in the Use Tax Act. The
tax shall be collected from persons whose Illinois address for
titling or registration purposes is given as being in the
District. The tax shall be collected by the Department of
Revenue for the Metro East Mass Transit District. The tax must
be paid to the State, or an exemption determination must be
obtained from the Department of Revenue, before the title or
certificate of registration for the property may be issued.
The tax or proof of exemption may be transmitted to the
Department by way of the State agency with which, or the State
officer with whom, the tangible personal property must be
titled or registered if the Department and the State agency or
State officer determine that this procedure will expedite the
processing of applications for title or registration.
The Department shall have full power to administer and
enforce this paragraph; to collect all taxes, penalties and
interest due hereunder; to dispose of taxes, penalties and

SB2201 - 139 - LRB103 28036 HLH 54415 b
interest so collected in the manner hereinafter provided; and
to determine all rights to credit memoranda or refunds arising
on account of the erroneous payment of tax, penalty or
interest hereunder. In the administration of, and compliance
with, this paragraph, the Department and persons who are
subject to this paragraph shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions and definitions of terms and
employ the same modes of procedure, as are prescribed in
Sections 2 (except the definition of "retailer maintaining a
place of business in this State"), 3 through 3-80 (except
provisions pertaining to the State rate of tax, and except
provisions concerning collection or refunding of the tax by
retailers), 4, 11, 12, 12a, 14, 15, 19 (except the portions
pertaining to claims by retailers and except the last
paragraph concerning refunds), 20, 21 and 22 of the Use Tax Act
and Section 3-7 of the Uniform Penalty and Interest Act, that
are not inconsistent with this paragraph, as fully as if those
provisions were set forth herein.
Whenever the Department determines that a refund should be
made under this paragraph to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State

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Treasurer out of the Metro East Mass Transit District tax fund
established under paragraph (h) of this Section.
(d-5) (A) The county board of any county participating in
the Metro East Mass Transit District may authorize, by
ordinance, a referendum on the question of whether the tax
rates for the Metro East Mass Transit District Retailers'
Occupation Tax, the Metro East Mass Transit District Service
Occupation Tax, and the Metro East Mass Transit District Use
Tax for the District should be increased from 0.25% to 0.75%.
Upon adopting the ordinance, the county board shall certify
the proposition to the proper election officials who shall
submit the proposition to the voters of the District at the
next election, in accordance with the general election law.
The proposition shall be in substantially the following
form:
Shall the tax rates for the Metro East Mass Transit
District Retailers' Occupation Tax, the Metro East Mass
Transit District Service Occupation Tax, and the Metro
East Mass Transit District Use Tax be increased from 0.25%
to 0.75%?
(B) Two thousand five hundred electors of any Metro East
Mass Transit District may petition the Chief Judge of the
Circuit Court, or any judge of that Circuit designated by the
Chief Judge, in which that District is located to cause to be
submitted to a vote of the electors the question whether the
tax rates for the Metro East Mass Transit District Retailers'

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Occupation Tax, the Metro East Mass Transit District Service
Occupation Tax, and the Metro East Mass Transit District Use
Tax for the District should be increased from 0.25% to 0.75%.
Upon submission of such petition the court shall set a
date not less than 10 nor more than 30 days thereafter for a
hearing on the sufficiency thereof. Notice of the filing of
such petition and of such date shall be given in writing to the
District and the County Clerk at least 7 days before the date
of such hearing.
If such petition is found sufficient, the court shall
enter an order to submit that proposition at the next
election, in accordance with general election law.
The form of the petition shall be in substantially the
following form: To the Circuit Court of the County of (name of
county):
We, the undersigned electors of the (name of transit
district), respectfully petition your honor to submit to a
vote of the electors of (name of transit district) the
following proposition:
Shall the tax rates for the Metro East Mass Transit
District Retailers' Occupation Tax, the Metro East Mass
Transit District Service Occupation Tax, and the Metro
East Mass Transit District Use Tax be increased from 0.25%
to 0.75%?
Name Address, with Street and Number.
...................... ........................................

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...................... ........................................
(C) The votes shall be recorded as "YES" or "NO". If a
majority of all votes cast on the proposition are for the
increase in the tax rates, the Metro East Mass Transit
District shall begin imposing the increased rates in the
District, and the Department of Revenue shall begin collecting
the increased amounts, as provided under this Section. An
ordinance imposing or discontinuing a tax hereunder or
effecting a change in the rate thereof shall be adopted and a
certified copy thereof filed with the Department on or before
the first day of October, whereupon the Department shall
proceed to administer and enforce this Section as of the first
day of January next following the adoption and filing, or on or
before the first day of April, whereupon the Department shall
proceed to administer and enforce this Section as of the first
day of July next following the adoption and filing.
(D) If the voters have approved a referendum under this
subsection, before November 1, 1994, to increase the tax rate
under this subsection, the Metro East Mass Transit District
Board of Trustees may adopt by a majority vote an ordinance at
any time before January 1, 1995 that excludes from the rate
increase tangible personal property that is titled or
registered with an agency of this State's government. The
ordinance excluding titled or registered tangible personal
property from the rate increase must be filed with the
Department at least 15 days before its effective date. At any

SB2201 - 143 - LRB103 28036 HLH 54415 b
time after adopting an ordinance excluding from the rate
increase tangible personal property that is titled or
registered with an agency of this State's government, the
Metro East Mass Transit District Board of Trustees may adopt
an ordinance applying the rate increase to that tangible
personal property. The ordinance shall be adopted, and a
certified copy of that ordinance shall be filed with the
Department, on or before October 1, whereupon the Department
shall proceed to administer and enforce the rate increase
against tangible personal property titled or registered with
an agency of this State's government as of the following
January 1. After December 31, 1995, any reimposed rate
increase in effect under this subsection shall no longer apply
to tangible personal property titled or registered with an
agency of this State's government. Beginning January 1, 1996,
the Board of Trustees of any Metro East Mass Transit District
may never reimpose a previously excluded tax rate increase on
tangible personal property titled or registered with an agency
of this State's government. After July 1, 2004, if the voters
have approved a referendum under this subsection to increase
the tax rate under this subsection, the Metro East Mass
Transit District Board of Trustees may adopt by a majority
vote an ordinance that excludes from the rate increase
tangible personal property that is titled or registered with
an agency of this State's government. The ordinance excluding
titled or registered tangible personal property from the rate

SB2201 - 144 - LRB103 28036 HLH 54415 b
increase shall be adopted, and a certified copy of that
ordinance shall be filed with the Department on or before
October 1, whereupon the Department shall administer and
enforce this exclusion from the rate increase as of the
following January 1, or on or before April 1, whereupon the
Department shall administer and enforce this exclusion from
the rate increase as of the following July 1. The Board of
Trustees of any Metro East Mass Transit District may never
reimpose a previously excluded tax rate increase on tangible
personal property titled or registered with an agency of this
State's government.
(d-6) If the Board of Trustees of any Metro East Mass
Transit District has imposed a rate increase under subsection
(d-5) and filed an ordinance with the Department of Revenue
excluding titled property from the higher rate, then that
Board may, by ordinance adopted with the concurrence of
two-thirds of the then trustees, impose throughout the
District a fee. The fee on the excluded property shall not
exceed $20 per retail transaction or an amount equal to the
amount of tax excluded, whichever is less, on tangible
personal property that is titled or registered with an agency
of this State's government. Beginning July 1, 2004, the fee
shall apply only to titled property that is subject to either
the Metro East Mass Transit District Retailers' Occupation Tax
or the Metro East Mass Transit District Service Occupation
Tax. No fee shall be imposed or collected under this

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subsection on the sale of a motor vehicle in this State to a
resident of another state if that motor vehicle will not be
titled in this State.
(d-7) Until June 30, 2004, if a fee has been imposed under
subsection (d-6), a fee shall also be imposed upon the
privilege of using, in the district, any item of tangible
personal property that is titled or registered with any agency
of this State's government, in an amount equal to the amount of
the fee imposed under subsection (d-6).
(d-7.1) Beginning July 1, 2004, any fee imposed by the
Board of Trustees of any Metro East Mass Transit District
under subsection (d-6) and all civil penalties that may be
assessed as an incident of the fees shall be collected and
enforced by the State Department of Revenue. Reference to
"taxes" in this Section shall be construed to apply to the
administration, payment, and remittance of all fees under this
Section. For purposes of any fee imposed under subsection
(d-6), 4% of the fee, penalty, and interest received by the
Department in the first 12 months that the fee is collected and
enforced by the Department and 2% of the fee, penalty, and
interest following the first 12 months (except the amount
collected on aviation fuel sold on or after December 1, 2019)
shall be deposited into the Tax Compliance and Administration
Fund and shall be used by the Department, subject to
appropriation, to cover the costs of the Department. No
retailers' discount shall apply to any fee imposed under

SB2201 - 146 - LRB103 28036 HLH 54415 b
subsection (d-6).
(d-8) No item of titled property shall be subject to both
the higher rate approved by referendum, as authorized under
subsection (d-5), and any fee imposed under subsection (d-6)
or (d-7).
(d-9) (Blank).
(d-10) (Blank).
(e) A certificate of registration issued by the State
Department of Revenue to a retailer under the Retailers'
Occupation Tax Act or under the Service Occupation Tax Act
shall permit the registrant to engage in a business that is
taxed under the tax imposed under paragraphs (b), (c) or (d) of
this Section and no additional registration shall be required
under the tax. A certificate issued under the Use Tax Act or
the Service Use Tax Act shall be applicable with regard to any
tax imposed under paragraph (c) of this Section.
(f) (Blank).
(g) Any ordinance imposing or discontinuing any tax under
this Section shall be adopted and a certified copy thereof
filed with the Department on or before June 1, whereupon the
Department of Revenue shall proceed to administer and enforce
this Section on behalf of the Metro East Mass Transit District
as of September 1 next following such adoption and filing.
Beginning January 1, 1992, an ordinance or resolution imposing
or discontinuing the tax hereunder shall be adopted and a
certified copy thereof filed with the Department on or before

SB2201 - 147 - LRB103 28036 HLH 54415 b
the first day of July, whereupon the Department shall proceed
to administer and enforce this Section as of the first day of
October next following such adoption and filing. Beginning
January 1, 1993, except as provided in subsection (d-5) of
this Section, an ordinance or resolution imposing or
discontinuing the tax hereunder shall be adopted and a
certified copy thereof filed with the Department on or before
the first day of October, whereupon the Department shall
proceed to administer and enforce this Section as of the first
day of January next following such adoption and filing, or,
beginning January 1, 2004, on or before the first day of April,
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of July next following
the adoption and filing.
(h) Except as provided in subsection (d-7.1), the State
Department of Revenue shall, upon collecting any taxes as
provided in this Section, pay the taxes over to the State
Treasurer as trustee for the District. The taxes shall be held
in a trust fund outside the State Treasury. If an
airport-related purpose has been certified, taxes and
penalties collected in St. Clair County on aviation fuel sold
on or after December 1, 2019 from the 0.50% of the 0.75% rate
shall be immediately paid over by the Department to the State
Treasurer, ex officio, as trustee, for deposit into the Local
Government Aviation Trust Fund. The Department shall only pay
moneys into the Local Government Aviation Trust Fund under

SB2201 - 148 - LRB103 28036 HLH 54415 b
this Act for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
District.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for
sales within a STAR bond district. The Department shall make
this certification only if the local mass transit district
imposes a tax on real property as provided in the definition of
"local sales taxes" under the Innovation Development and
Economy Act.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the State
Department of Revenue shall prepare and certify to the
Comptroller of the State of Illinois the amount to be paid to
the District, which shall be the amount (not including credit
memoranda and not including taxes and penalties collected on
aviation fuel sold on or after December 1, 2019 that are
deposited into the Local Government Aviation Trust Fund)
collected under this Section during the second preceding
calendar month by the Department plus an amount the Department
determines is necessary to offset any amounts that were

SB2201 - 149 - LRB103 28036 HLH 54415 b
erroneously paid to a different taxing body, and not including
any amount equal to the amount of refunds made during the
second preceding calendar month by the Department on behalf of
the District, and not including any amount that the Department
determines is necessary to offset any amounts that were
payable to a different taxing body but were erroneously paid
to the District, and less any amounts that are transferred to
the STAR Bonds Revenue Fund, less 1.5% of the remainder, which
the Department shall transfer into the Tax Compliance and
Administration Fund. The Department, at the time of each
monthly disbursement to the District, shall prepare and
certify to the State Comptroller the amount to be transferred
into the Tax Compliance and Administration Fund under this
subsection. Within 10 days after receipt by the Comptroller of
the certification of the amount to be paid to the District and
the Tax Compliance and Administration Fund, the Comptroller
shall cause an order to be drawn for payment for the amount in
accordance with the direction in the certification.
(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
101-10, eff. 6-5-19; 101-604, eff. 12-13-19.)
Section 40. The Regional Transportation Authority Act is
amended by changing Section 4.03 as follows:
(70 ILCS 3615/4.03) (from Ch. 111 2/3, par. 704.03)
Sec. 4.03. Taxes.

SB2201 - 150 - LRB103 28036 HLH 54415 b
(a) In order to carry out any of the powers or purposes of
the Authority, the Board may by ordinance adopted with the
concurrence of 12 of the then Directors, impose throughout the
metropolitan region any or all of the taxes provided in this
Section. Except as otherwise provided in this Act, taxes
imposed under this Section and civil penalties imposed
incident thereto shall be collected and enforced by the State
Department of Revenue. The Department shall have the power to
administer and enforce the taxes and to determine all rights
for refunds for erroneous payments of the taxes. Nothing in
Public Act 95-708 is intended to invalidate any taxes
currently imposed by the Authority. The increased vote
requirements to impose a tax shall only apply to actions taken
after January 1, 2008 (the effective date of Public Act
95-708).
(b) The Board may impose a public transportation tax upon
all persons engaged in the metropolitan region in the business
of selling at retail motor fuel for operation of motor
vehicles upon public highways. The tax shall be at a rate not
to exceed 5% of the gross receipts from the sales of motor fuel
in the course of the business. As used in this Act, the term
"motor fuel" shall have the same meaning as in the Motor Fuel
Tax Law. The Board may provide for details of the tax. The
provisions of any tax shall conform, as closely as may be
practicable, to the provisions of the Municipal Retailers
Occupation Tax Act, including without limitation, conformity

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to penalties with respect to the tax imposed and as to the
powers of the State Department of Revenue to promulgate and
enforce rules and regulations relating to the administration
and enforcement of the provisions of the tax imposed, except
that reference in the Act to any municipality shall refer to
the Authority and the tax shall be imposed only with regard to
receipts from sales of motor fuel in the metropolitan region,
at rates as limited by this Section.
(c) In connection with the tax imposed under paragraph (b)
of this Section, the Board may impose a tax upon the privilege
of using in the metropolitan region motor fuel for the
operation of a motor vehicle upon public highways, the tax to
be at a rate not in excess of the rate of tax imposed under
paragraph (b) of this Section. The Board may provide for
details of the tax.
(d) The Board may impose a motor vehicle parking tax upon
the privilege of parking motor vehicles at off-street parking
facilities in the metropolitan region at which a fee is
charged, and may provide for reasonable classifications in and
exemptions to the tax, for administration and enforcement
thereof and for civil penalties and refunds thereunder and may
provide criminal penalties thereunder, the maximum penalties
not to exceed the maximum criminal penalties provided in the
Retailers' Occupation Tax Act. The Authority may collect and
enforce the tax itself or by contract with any unit of local
government. The State Department of Revenue shall have no

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responsibility for the collection and enforcement unless the
Department agrees with the Authority to undertake the
collection and enforcement. As used in this paragraph, the
term "parking facility" means a parking area or structure
having parking spaces for more than 2 vehicles at which motor
vehicles are permitted to park in return for an hourly, daily,
or other periodic fee, whether publicly or privately owned,
but does not include parking spaces on a public street, the use
of which is regulated by parking meters.
(e) The Board may impose a Regional Transportation
Authority Retailers' Occupation Tax upon all persons engaged
in the business of selling tangible personal property, leasing
tangible personal property, or both selling and leasing
tangible personal property at retail in the metropolitan
region. In Cook County, the tax rate shall be 1.25% of the
gross receipts from sales or leases of tangible personal
property taxed at the 1% rate under the Retailers' Occupation
Tax Act (or at the 0% rate imposed under this amendatory Act of
the 102nd General Assembly), and 1% of the gross receipts from
other taxable sales or leases made in the course of that
business. In DuPage, Kane, Lake, McHenry, and Will counties,
the tax rate shall be 0.75% of the gross receipts from all
taxable sales made in the course of that business. The rate of
tax imposed in DuPage, Kane, Lake, McHenry, and Will counties
under this Section on sales of aviation fuel on or after
December 1, 2019 shall, however, be 0.25% unless the Regional

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Transportation Authority in DuPage, Kane, Lake, McHenry, and
Will counties has an "airport-related purpose" and the
additional 0.50% of the 0.75% tax on aviation fuel is expended
for airport-related purposes. If there is no airport-related
purpose to which aviation fuel tax revenue is dedicated, then
aviation fuel is excluded from the additional 0.50% of the
0.75% tax. The tax shall not be imposed on the sale or lease
of: (1) tangible personal property titled or registered with
an agency of this State's government; (2) tangible personal
property subject to a personal property lease transaction tax
paid to the home rule municipality; (3) computer software; or
(4) tangible personal property subject to the Rental Purchase
Agreement Occupation and Use Tax Act. The tax imposed under
this Section and all civil penalties that may be assessed as an
incident thereof shall be collected and enforced by the State
Department of Revenue. The Department shall have full power to
administer and enforce this Section; to collect all taxes and
penalties so collected in the manner hereinafter provided; and
to determine all rights to credit memoranda arising on account
of the erroneous payment of tax or penalty hereunder. In the
administration of, and compliance with this Section, the
Department and persons who are subject to this Section shall
have the same rights, remedies, privileges, immunities,
powers, and duties, and be subject to the same conditions,
restrictions, limitations, penalties, exclusions, exemptions,
and definitions of terms, and employ the same modes of

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procedure, as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d,
1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
therein other than the State rate of tax), 2c, 3 (except as to
the disposition of taxes and penalties collected, and except
that the retailer's discount is not allowed for taxes paid on
aviation fuel that are subject to the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c,
5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9,
10, 11, 12, and 13 of the Retailers' Occupation Tax Act and
Section 3-7 of the Uniform Penalty and Interest Act, as fully
as if those provisions were set forth herein.
The Board and DuPage, Kane, Lake, McHenry, and Will
counties must comply with the certification requirements for
airport-related purposes under Section 2-22 of the Retailers'
Occupation Tax Act. For purposes of this Section,
"airport-related purposes" has the meaning ascribed in Section
6z-20.2 of the State Finance Act. This exclusion for aviation
fuel only applies for so long as the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
Authority.
Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
seller's tax liability hereunder by separately stating the tax
as an additional charge, which charge may be stated in
combination in a single amount with State taxes that sellers
are required to collect under the Use Tax Act, under any

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bracket schedules the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Regional Transportation Authority tax
fund established under paragraph (n) of this Section or the
Local Government Aviation Trust Fund, as appropriate.
If a tax is imposed under this subsection (e), a tax shall
also be imposed under subsections (f) and (g) of this Section.
For the purpose of determining whether a tax authorized
under this Section is applicable, a retail sale by a producer
of coal or other mineral mined in Illinois, is a sale at retail
at the place where the coal or other mineral mined in Illinois
is extracted from the earth. This paragraph does not apply to
coal or other mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the Federal Constitution as a sale in
interstate or foreign commerce.
No tax shall be imposed or collected under this subsection
on the sale of a motor vehicle in this State to a resident of
another state if that motor vehicle will not be titled in this
State.
Nothing in this Section shall be construed to authorize

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the Regional Transportation Authority to impose a tax upon the
privilege of engaging in any business that under the
Constitution of the United States may not be made the subject
of taxation by this State.
(f) If a tax has been imposed under paragraph (e), a
Regional Transportation Authority Service Occupation Tax shall
also be imposed upon all persons engaged, in the metropolitan
region in the business of making sales of service, who as an
incident to making the sales of service, transfer tangible
personal property within the metropolitan region, either in
the form of tangible personal property or in the form of real
estate as an incident to a sale of service. In Cook County, the
tax rate shall be: (1) 1.25% of the serviceman's cost price of
food prepared for immediate consumption and transferred
incident to a sale of service subject to the service
occupation tax by an entity licensed under the Hospital
Licensing Act, the Nursing Home Care Act, the Specialized
Mental Health Rehabilitation Act of 2013, the ID/DD Community
Care Act, or the MC/DD Act that is located in the metropolitan
region; (2) 1.25% of the selling price of tangible personal
property taxed at the 1% rate under the Service Occupation Tax
Act (or at the 0% rate imposed under this amendatory Act of the
102nd General Assembly); and (3) 1% of the selling price from
other taxable sales of tangible personal property transferred.
In DuPage, Kane, Lake, McHenry, and Will counties, the rate
shall be 0.75% of the selling price of all tangible personal

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property transferred. The rate of tax imposed in DuPage, Kane,
Lake, McHenry, and Will counties under this Section on sales
of aviation fuel on or after December 1, 2019 shall, however,
be 0.25% unless the Regional Transportation Authority in
DuPage, Kane, Lake, McHenry, and Will counties has an
"airport-related purpose" and the additional 0.50% of the
0.75% tax on aviation fuel is expended for airport-related
purposes. If there is no airport-related purpose to which
aviation fuel tax revenue is dedicated, then aviation fuel is
excluded from the additional 0.5% of the 0.75% tax.
The Board and DuPage, Kane, Lake, McHenry, and Will
counties must comply with the certification requirements for
airport-related purposes under Section 2-22 of the Retailers'
Occupation Tax Act. For purposes of this Section,
"airport-related purposes" has the meaning ascribed in Section
6z-20.2 of the State Finance Act. This exclusion for aviation
fuel only applies for so long as the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
Authority.
The tax imposed under this paragraph and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the State Department of Revenue. The
Department shall have full power to administer and enforce
this paragraph; to collect all taxes and penalties due
hereunder; to dispose of taxes and penalties collected in the
manner hereinafter provided; and to determine all rights to

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

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Persons subject to any tax imposed under the authority
granted in this paragraph may reimburse themselves for their
serviceman's tax liability hereunder by separately stating the
tax as an additional charge, that charge may be stated in
combination in a single amount with State tax that servicemen
are authorized to collect under the Service Use Tax Act, under
any bracket schedules the Department may prescribe.
Whenever the Department determines that a refund should be
made under this paragraph to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Regional Transportation Authority tax
fund established under paragraph (n) of this Section or the
Local Government Aviation Trust Fund, as appropriate.
Nothing in this paragraph shall be construed to authorize
the Authority to impose a tax upon the privilege of engaging in
any business that under the Constitution of the United States
may not be made the subject of taxation by the State.
(g) If a tax has been imposed under paragraph (e), a tax
shall also be imposed upon the privilege of using in the
metropolitan region, any item of tangible personal property
that is purchased outside the metropolitan region at retail
from a retailer, and that is titled or registered with an
agency of this State's government. In Cook County, the tax

SB2201 - 160 - LRB103 28036 HLH 54415 b
rate shall be 1% of the selling price of the tangible personal
property, as "selling price" is defined in the Use Tax Act. In
DuPage, Kane, Lake, McHenry, and Will counties, the tax rate
shall be 0.75% of the selling price of the tangible personal
property, as "selling price" is defined in the Use Tax Act. The
tax shall be collected from persons whose Illinois address for
titling or registration purposes is given as being in the
metropolitan region. The tax shall be collected by the
Department of Revenue for the Regional Transportation
Authority. The tax must be paid to the State, or an exemption
determination must be obtained from the Department of Revenue,
before the title or certificate of registration for the
property may be issued. The tax or proof of exemption may be
transmitted to the Department by way of the State agency with
which, or the State officer with whom, the tangible personal
property must be titled or registered if the Department and
the State agency or State officer determine that this
procedure will expedite the processing of applications for
title or registration.
The Department shall have full power to administer and
enforce this paragraph; to collect all taxes, penalties, and
interest due hereunder; to dispose of taxes, penalties, and
interest collected in the manner hereinafter provided; and to
determine all rights to credit memoranda or refunds arising on
account of the erroneous payment of tax, penalty, or interest
hereunder. In the administration of and compliance with this

SB2201 - 161 - LRB103 28036 HLH 54415 b
paragraph, the Department and persons who are subject to this
paragraph shall have the same rights, remedies, privileges,
immunities, powers, and duties, and be subject to the same
conditions, restrictions, limitations, penalties, exclusions,
exemptions, and definitions of terms and employ the same modes
of procedure, as are prescribed in Sections 2 (except the
definition of "retailer maintaining a place of business in
this State"), 3 through 3-80 (except provisions pertaining to
the State rate of tax, and except provisions concerning
collection or refunding of the tax by retailers), 4, 11, 12,
12a, 14, 15, 19 (except the portions pertaining to claims by
retailers and except the last paragraph concerning refunds),
20, 21, and 22 of the Use Tax Act, and are not inconsistent
with this paragraph, as fully as if those provisions were set
forth herein.
Whenever the Department determines that a refund should be
made under this paragraph to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Regional Transportation Authority tax
fund established under paragraph (n) of this Section.
(h) The Authority may impose a replacement vehicle tax of
$50 on any passenger car as defined in Section 1-157 of the
Illinois Vehicle Code purchased within the metropolitan region

SB2201 - 162 - LRB103 28036 HLH 54415 b
by or on behalf of an insurance company to replace a passenger
car of an insured person in settlement of a total loss claim.
The tax imposed may not become effective before the first day
of the month following the passage of the ordinance imposing
the tax and receipt of a certified copy of the ordinance by the
Department of Revenue. The Department of Revenue shall collect
the tax for the Authority in accordance with Sections 3-2002
and 3-2003 of the Illinois Vehicle Code.
The Department shall immediately pay over to the State
Treasurer, ex officio, as trustee, all taxes collected
hereunder.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for
sales within a STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to the Authority. The
amount to be paid to the Authority shall be the amount
collected hereunder during the second preceding calendar month
by the Department, less any amount determined by the

SB2201 - 163 - LRB103 28036 HLH 54415 b
Department to be necessary for the payment of refunds, and
less any amounts that are transferred to the STAR Bonds
Revenue Fund. Within 10 days after receipt by the Comptroller
of the disbursement certification to the Authority provided
for in this Section to be given to the Comptroller by the
Department, the Comptroller shall cause the orders to be drawn
for that amount in accordance with the directions contained in
the certification.
(i) The Board may not impose any other taxes except as it
may from time to time be authorized by law to impose.
(j) A certificate of registration issued by the State
Department of Revenue to a retailer under the Retailers'
Occupation Tax Act or under the Service Occupation Tax Act
shall permit the registrant to engage in a business that is
taxed under the tax imposed under paragraphs (b), (e), (f) or
(g) of this Section and no additional registration shall be
required under the tax. A certificate issued under the Use Tax
Act or the Service Use Tax Act shall be applicable with regard
to any tax imposed under paragraph (c) of this Section.
(k) The provisions of any tax imposed under paragraph (c)
of this Section shall conform as closely as may be practicable
to the provisions of the Use Tax Act, including without
limitation conformity as to penalties with respect to the tax
imposed and as to the powers of the State Department of Revenue
to promulgate and enforce rules and regulations relating to
the administration and enforcement of the provisions of the

SB2201 - 164 - LRB103 28036 HLH 54415 b
tax imposed. The taxes shall be imposed only on use within the
metropolitan region and at rates as provided in the paragraph.
(l) The Board in imposing any tax as provided in
paragraphs (b) and (c) of this Section, shall, after seeking
the advice of the State Department of Revenue, provide means
for retailers, users or purchasers of motor fuel for purposes
other than those with regard to which the taxes may be imposed
as provided in those paragraphs to receive refunds of taxes
improperly paid, which provisions may be at variance with the
refund provisions as applicable under the Municipal Retailers
Occupation Tax Act. The State Department of Revenue may
provide for certificates of registration for users or
purchasers of motor fuel for purposes other than those with
regard to which taxes may be imposed as provided in paragraphs
(b) and (c) of this Section to facilitate the reporting and
nontaxability of the exempt sales or uses.
(m) Any ordinance imposing or discontinuing any tax under
this Section shall be adopted and a certified copy thereof
filed with the Department on or before June 1, whereupon the
Department of Revenue shall proceed to administer and enforce
this Section on behalf of the Regional Transportation
Authority as of September 1 next following such adoption and
filing. Beginning January 1, 1992, an ordinance or resolution
imposing or discontinuing the tax hereunder shall be adopted
and a certified copy thereof filed with the Department on or
before the first day of July, whereupon the Department shall

SB2201 - 165 - LRB103 28036 HLH 54415 b
proceed to administer and enforce this Section as of the first
day of October next following such adoption and filing.
Beginning January 1, 1993, an ordinance or resolution
imposing, increasing, decreasing, or discontinuing the tax
hereunder shall be adopted and a certified copy thereof filed
with the Department, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of the
first month to occur not less than 60 days following such
adoption and filing. Any ordinance or resolution of the
Authority imposing a tax under this Section and in effect on
August 1, 2007 shall remain in full force and effect and shall
be administered by the Department of Revenue under the terms
and conditions and rates of tax established by such ordinance
or resolution until the Department begins administering and
enforcing an increased tax under this Section as authorized by
Public Act 95-708. The tax rates authorized by Public Act
95-708 are effective only if imposed by ordinance of the
Authority.
(n) Except as otherwise provided in this subsection (n),
the State Department of Revenue shall, upon collecting any
taxes as provided in this Section, pay the taxes over to the
State Treasurer as trustee for the Authority. The taxes shall
be held in a trust fund outside the State Treasury. If an
airport-related purpose has been certified, taxes and
penalties collected in DuPage, Kane, Lake, McHenry and Will
counties on aviation fuel sold on or after December 1, 2019

SB2201 - 166 - LRB103 28036 HLH 54415 b
from the 0.50% of the 0.75% rate shall be immediately paid over
by the Department to the State Treasurer, ex officio, as
trustee, for deposit into the Local Government Aviation Trust
Fund. The Department shall only pay moneys into the Local
Government Aviation Trust Fund under this Act for so long as
the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the Authority. On or before the
25th day of each calendar month, the State Department of
Revenue shall prepare and certify to the Comptroller of the
State of Illinois and to the Authority (i) the amount of taxes
collected in each county other than Cook County in the
metropolitan region, (not including, if an airport-related
purpose has been certified, the taxes and penalties collected
from the 0.50% of the 0.75% rate on aviation fuel sold on or
after December 1, 2019 that are deposited into the Local
Government Aviation Trust Fund) (ii) the amount of taxes
collected within the City of Chicago, and (iii) the amount
collected in that portion of Cook County outside of Chicago,
each amount less the amount necessary for the payment of
refunds to taxpayers located in those areas described in items
(i), (ii), and (iii), and less 1.5% of the remainder, which
shall be transferred from the trust fund into the Tax
Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the Authority, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund

SB2201 - 167 - LRB103 28036 HLH 54415 b
under this subsection. Within 10 days after receipt by the
Comptroller of the certification of the amounts, the
Comptroller shall cause an order to be drawn for the transfer
of the amount certified into the Tax Compliance and
Administration Fund and the payment of two-thirds of the
amounts certified in item (i) of this subsection to the
Authority and one-third of the amounts certified in item (i)
of this subsection to the respective counties other than Cook
County and the amount certified in items (ii) and (iii) of this
subsection to the Authority.
In addition to the disbursement required by the preceding
paragraph, an allocation shall be made in July 1991 and each
year thereafter to the Regional Transportation Authority. The
allocation shall be made in an amount equal to the average
monthly distribution during the preceding calendar year
(excluding the 2 months of lowest receipts) and the allocation
shall include the amount of average monthly distribution from
the Regional Transportation Authority Occupation and Use Tax
Replacement Fund. The distribution made in July 1992 and each
year thereafter under this paragraph and the preceding
paragraph shall be reduced by the amount allocated and
disbursed under this paragraph in the preceding calendar year.
The Department of Revenue shall prepare and certify to the
Comptroller for disbursement the allocations made in
accordance with this paragraph.
(o) Failure to adopt a budget ordinance or otherwise to

SB2201 - 168 - LRB103 28036 HLH 54415 b
comply with Section 4.01 of this Act or to adopt a Five-year
Capital Program or otherwise to comply with paragraph (b) of
Section 2.01 of this Act shall not affect the validity of any
tax imposed by the Authority otherwise in conformity with law.
(p) At no time shall a public transportation tax or motor
vehicle parking tax authorized under paragraphs (b), (c), and
(d) of this Section be in effect at the same time as any
retailers' occupation, use or service occupation tax
authorized under paragraphs (e), (f), and (g) of this Section
is in effect.
Any taxes imposed under the authority provided in
paragraphs (b), (c), and (d) shall remain in effect only until
the time as any tax authorized by paragraph (e), (f), or (g) of
this Section are imposed and becomes effective. Once any tax
authorized by paragraph (e), (f), or (g) is imposed the Board
may not reimpose taxes as authorized in paragraphs (b), (c),
and (d) of the Section unless any tax authorized by paragraph
(e), (f), or (g) of this Section becomes ineffective by means
other than an ordinance of the Board.
(q) Any existing rights, remedies and obligations
(including enforcement by the Regional Transportation
Authority) arising under any tax imposed under paragraph (b),
(c), or (d) of this Section shall not be affected by the
imposition of a tax under paragraph (e), (f), or (g) of this
Section.
(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;

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101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
Section 95. No acceleration or delay. Where this Act makes
changes in a statute that is represented in this Act by text
that is not yet or no longer in effect (for example, a Section
represented by multiple versions), the use of that text does
not accelerate or delay the taking effect of (i) the changes
made by this Act or (ii) provisions derived from any other
Public Act.
Section 99. Effective date. This Act takes effect upon
becoming law.