Bill Amendment: IL HB0910 | 2025-2026 | 104th General Assembly

NOTE: For additional amemendments please see the Bill Drafting List

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Bill Title: STATE GOVERNMENT-TECH

Status: 2026-04-28 - Referred to Assignments [HB0910 Detail]

Download: Illinois-2025-HB0910-House_Amendment_003.html

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Rep. Kam Buckner

Filed: 4/22/2026

 

 

 

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AMENDMENT TO HOUSE BILL 910
AMENDMENT NO. ______. Amend House Bill 910 by replacing
everything after the enacting clause with the following:
"ARTICLE 1
Section 1-1. Short title. This Act may be cited as the
Capital Area Tourism Authority Act. References in this Article
to "this Act" mean this Article.
Section 1-5. Findings; purpose.
(a) The General Assembly finds and declares that:
(1) The City of Springfield is the capital city of the
State of Illinois and the home of President Abraham
Lincoln.
(2) The City of Springfield and Sangamon County
welcome visitors from around the world and are the
cornerstone of State government.

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(b) The purpose of this Act is to ensure that the City of
Springfield has a vibrant hospitality industry that is capable
of hosting visitors, legislative advocates, and those doing
business with the State.
Section 1-10. Definitions. In this Act:
"Authority" means the Capital Area Tourism Authority
established by this Act.
"Base year" means the calendar year immediately before the
calendar year in which the STAR bond project is approved under
this Act.
"Board" means the Board of Trustees of the Authority.
"Hotel operator" has the meaning given to that term in the
Hotel Operators' Occupation Tax Act.
"Local sales taxes" has the meaning given to that term in
the Statewide Innovation Development and Economy Act, except
that, with respect to locally imposed taxes received by the
City of Springfield, "local sales taxes" shall be limited to
50% of that portion of the tax arising from sales by retailers
and servicemen within the territory of the Authority that is
in excess of the aggregate local sales tax in the territory for
the same month in the base year, as determined by the
municipality.
"Master developer" has the meaning given to that term in
the Statewide Innovation Development and Economy Act.
"Project costs" has the meaning given to that term in the

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Statewide Innovation Development and Economy Act.
"STAR bond district" has the meaning given to that term in
the Statewide Innovation Development and Economy Act.
"STAR bond project" has the meaning given to that term in
the Statewide Innovation Development and Economy Act.
Section 1-15. Creation of the Authority. The Capital Area
Tourism Authority is hereby created as a political subdivision
and unit of local government for the benefit of the general
public and the promotion of business, industry, commerce, and
tourism in the City of Springfield, Sangamon County, and the
State of Illinois. The Authority shall have only those powers
described in Section 1-20 of this Act, and its territorial
jurisdiction shall extend over all territory in the City of
Springfield that is coterminous with the 62701 zip code.
Section 1-20. Powers and duties of the Authority.
(a) If and only if the Sangamon County Board, by
ordinance, imposes a tax under subsection (b-5) of Section
5-1030 of the Counties Code on all hotel operators who engage
in business as a hotel operator within any STAR bond district
that is established in the territory of the Authority, and if
the Sangamon County Board also resolves that all of the
revenue generated from the tax under subsection (b-5) of
Section 5-1030 of the Counties Code and all of the tax receipts
generated from local sales taxes within the STAR bond district

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shall be dedicated to the payment of the project costs for any
STAR bond project in the district and shall be considered
pledged STAR revenues under the Statewide Innovation
Development and Economy Act, then the Authority may exercise
the powers set forth in subsection (c) as well as those powers
ordinarily authorized by law for a political subdivision for
the purposes described in subsection (b).
(b) The Authority shall use the powers conferred on it
under this Section to assist in the development, construction,
and acquisition of industrial or commercial projects within
its territorial jurisdiction and to promote business,
industry, commerce, and tourism within Sangamon County and the
State of Illinois.
(c) If and only if the conditions described in subsection
(a) are satisfied, then the Authority shall possess all powers
of a body politic or municipal corporation necessary and
convenient to accomplish the purpose of this Act, including,
but not limited to, the power:
(1) to exercise all of the powers afforded to a
political subdivision pursuant to Section 5-100 of the
Statewide Innovation Development and Economy Act in
connection with a STAR bond district, including, but not
limited to, establishing a STAR bond district and issuing
STAR bonds to finance a STAR bond project;
(2) to enter into loans, contracts, agreements, and
mortgages;

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(3) to acquire by purchase, donation, or lease; to
own, convey, lease, sell, mortgage, or otherwise dispose
of interests in and to real or personal property; and to
grant or acquire licenses, easements, and options with
respect to property;
(4) to sue and be sued;
(5) to employ agents and employees necessary to carry
out this Act's purposes;
(6) to have, use, and alter a common seal;
(7) to acquire, own, construct, equip, finance, lease,
operate, and maintain grounds, buildings, facilities,
property or any portion of a building, facility, or
property owned or leased by the Authority to carry out the
purposes and duties of this Act and to fix, charge, and
collect fees, rents, and charges for the use of any
building, facility, property or portion thereof;
(8) to adopt all ordinances, resolutions, by-laws,
rules, and regulations necessary or proper to carry into
effect the purpose of this Act and the powers granted to
the Authority;
(9) to apply for, accept, and expend grants,
appropriations, guarantees, donations of property or
labor, or any other thing of value;
(10) to exercise the right of eminent domain by
condemnation proceedings in the manner provided by the
Eminent Domain Act;

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(11) to finance, construct, equip, own, operate, and
maintain any STAR bond project and to determine and direct
the use of the local tax contribution and the State tax
contribution for the approved STAR bond projects in the
STAR bond district;
(12) to pay or cause to be paid STAR bond project costs
and the principal and interest of any revenue bonds issued
by the Authority;
(13) to borrow money and to issue revenue bonds,
notes, or other evidences of indebtedness as provided for
in the Statewide Innovation Development and Economy Act;
and
(14) to exercise any and all other powers necessary to
effectuate the purposes of this Act.
Section 1-25. Board members; officers; governance.
(a) The governing and administrative powers of the
Authority shall be vested in its Board, which shall consist of
5 members appointed as follows:
(1) 3 members appointed by the Sangamon County Board;
(2) one member appointed by the Springfield City
Council; and
(3) one member appointed by the Springfield
Metropolitan Exposition and Auditorium Authority.
(b) All persons appointed as members of the Board shall be
residents of Sangamon County and shall have recognized ability

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and experience in one or more of the following areas: economic
development, finance, banking, commercial development, small
business management, real estate development, community
development, organized labor, units of local government, or
civic, community, or neighborhood organization.
(c) The Chairperson of the Board shall be selected by a
majority vote of the Board.
(d) The Sangamon County Board may remove any member of the
Board in case of incompetency, neglect of duty, or malfeasance
in office by a simple majority vote.
(e) Members of the Board shall hold office until their
respective successors have been appointed. Any member may
resign from his or her office. Vacancies shall be filled in the
same manner as original appointments.
(f) Members of the Board shall serve without compensation
for their services as members but may be reimbursed for all
necessary expenses incurred in connection with the performance
of their duties as members.
(g) The Board shall hold meetings quarterly or upon the
call of the Chairperson of the Board or written notice of 3
members of the Board.
(h) A majority of the appointed members of the Board shall
constitute a quorum for the transaction of business, and the
Board may not meet or take any action without a quorum present.
The affirmative vote of a majority of the members present at a
meeting at which a quorum is present shall be necessary for any

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official act of the Authority.
(i) All members of the Board and employees of the
Authority are subject to the Illinois Governmental Ethics Act,
in accordance with its terms, and shall submit a statement of
economic interests in accordance with Article 4A of the
Illinois Governmental Ethics Act. Additionally, each Board
member shall disclose to the Board outside sources of income
and any business relationships in economic development,
consulting, or lobbying. Reporting shall include the source of
income, services provided, and timeline of when services were
provided. If the source of income is a firm or organization
with multiple clients, the report shall list all of the
entities for which the individual provided services.
(j) The Board may appoint an Executive Director who shall
have a background in finance, real estate, economic
development, or administration. The Executive Director shall
hold office at the discretion of the Board. The Executive
Director shall be the chief administrative and operational
officer of the Authority, shall direct and supervise its
administrative affairs and general management, shall perform
such other duties as may be prescribed from time to time by the
Board, and shall receive compensation fixed by the Board. The
Executive Director shall attend all meetings of the Board;
however, no action of the Board or the Authority shall be
invalid on account of the absence of the Executive Director
from a meeting.

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Section 1-30. Open meetings; record disclosure.
(a) The Authority is subject to the Open Meetings Act and
the Freedom of Information Act. All rules, regulations,
ordinances, and resolutions of the Authority, and all
documents and records in its possession, shall be public
records and shall be open to public inspection, except such
documents and records as shall be kept or prepared by the Board
for use in negotiations, actions, or proceedings to which the
Authority is a party.
(b) Each contract or agreement entered into by the
Authority must be posted on the Authority's website. The
Authority shall provide a detailed report of the Authority's
financial information on the Authority's website.
Section 1-35. Limitations. If any of the Authority's
powers are exercised within the territorial jurisdiction of
any municipality, all ordinances of that municipality shall
remain in full force and effect and shall be controlling.
Section 1-40. Approval of STAR bond districts and STAR
bond project.
(a) Notwithstanding any other provision of law, all real
property in the territorial jurisdiction of the Authority
shall automatically constitute an eligible area for the
purposes of approving a STAR bond district or STAR bond

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project in that jurisdiction under the Statewide Innovation
Development and Economy Act, and the territorial boundaries of
the STAR bond district may be entirely within the corporate
limits of the City of Springfield.
(b) Subject to the limitations set forth in Section 5-15
of the Statewide Innovation Development and Economy Act, STAR
bond projects may be undertaken in a STAR bond district
located in the territorial jurisdiction of the Authority
provided that:
(1) each STAR bond project is approved under the
Statewide Innovation Development and Economy Act; and
(2) the local tax contribution and the State tax
contribution to the STAR bond projects are sufficient,
together with other pledged STAR revenues, to support the
financing of the STAR bond projects.
(c) Notwithstanding any other provision of law, to the
extent that the local tax contribution and the State tax
contribution, together with other available funds, aggregate
an amount that exceeds those funds required to pay any project
costs, including debt service on the STAR bonds issued in
connection with the STAR bond project, the Authority may
direct such excess local tax contribution and State tax
contribution to finance additional STAR bond projects in the
same STAR bond district.
Section 1-45. State tax contribution. Notwithstanding any

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other provision of law, any State sales tax increment pledged
to pay STAR bonds in any STAR bond district located in the
territorial jurisdiction of the Authority shall not be limited
to 50% of the total project costs in the STAR bond district but
rather will cover up to 100% of the total project costs.
Section 1-50. Master developer. Notwithstanding any other
provision of law, the Authority shall own and control any STAR
bond project and acreage on which the project is located in any
STAR Bond district created in the territorial jurisdiction of
the Authority instead of the Master Developer as required in
the Statewide Innovation Development and Economy Act. The
Master Developer shall not be required to provide equity in
such STAR bond project.
Section 1-55. Reports; commitment notice. The Authority
shall annually submit a report of its finances to the Auditor
General. The Authority shall annually submit a report of its
activities to the Governor and General Assembly. The Authority
shall provide notice to the General Assembly, the Department
of Commerce and Economic Opportunity, and the Governor once
the Authority enters into a commitment to support the
financing of a project. The notice to the General Assembly
shall be filed with the Clerk of the House of Representatives
and the Secretary of the Senate, in electronic form only, in
the manner that the Clerk and the Secretary shall direct.

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Section 1-60. Exemption from taxation. All property of the
Authority is exempt from taxation by the State or taxing
districts of the State.
Section 1-65. Investigatory authority. The Board may
investigate conditions in which it has an interest within the
territorial jurisdiction of the Authority, the enforcement of
its ordinances, rules and regulations, and the action,
conduct, and efficiency of all officers, agents and employees
of the Authority. In the conduct of such investigations the
Board may hold public hearings on its own motion. Each member
of the Board shall have power to administer oaths, and the
secretary, by order of the Board, shall issue subpoenas to
secure the attendance and testimony of witnesses and the
production of books and papers relevant to those
investigations and to any hearing before the Board or any
member of the Board. Any circuit court of this State, upon
application of the Board or any Board member, may, in its
discretion and by attachment for contempt or otherwise in the
same manner as the production of evidence may be compelled
before the court, compel the attendance of witnesses, the
production of books and papers, and the giving of testimony
before the Board or before any Board member or any officers'
committee appointed by the Board.

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ARTICLE 5
Section 5-1. Short title. This Act may be cited as the
Capital City Downtown Medical District Act. References in this
Article to "this Act" mean this Article.
Section 5-5. Findings. The General Assembly finds that
Springfield's distinctive role as Illinois' capital, a
regional medical destination, the home of President Abraham
Lincoln's Presidential Library and Museum, and a National
Historic Site warrants strengthened, structured collaboration
anchored by State government to advance medical,
entertainment, educational, legal, and public policy
priorities in the District. State and local governmental
bodies should encourage the leveraging of the District's
proximity to State government to support healthcare, civic,
legal, policy, and professional education activities that
advance the public benefit of all Illinoisans through public
service, workforce development, and downtown vitality.
Section 5-7. Definition. As used in this Act, unless the
context clearly requires otherwise, "District" means the
Capital City Downtown Medical District.
Section 5-10. Creation of District. There is created in
the City of Springfield a special development district to be

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known as the Capital City Downtown Medical District, whose
boundaries are 11th Street on the east, North Grand Avenue on
the north, Walnut Street on the west, and South Grand Avenue on
the south, and which excludes:
(1) all local, State, and federal government properties;
and
(2) the area bounded by Washington Street on the north,
Third Street on the east, Cook Street on the South, and Walnut
Street on the west.
The District is created to help build and sustain a
vibrant and thriving downtown zone in the State's capital city
by encouraging economic development, by increasing the number
of people who reside, who are employed, who visit, and who
study within the District, and by increasing economic activity
in the heart of downtown Springfield through commercial
development, including mixed-use housing developments,
workforce housing, student housing, and middle-income housing
within walking distance of government facilities, healthcare
facilities, commercial facilities, and educational facilities
in and near the District. The District aims to support
revitalization in key sectors, including, but not limited to,
healthcare, education, research, technology, housing, retail
merchandising, restaurants, arts and culture, tourism,
historic preservation and public infrastructure, and to
improve and provide for the management of land and facilities
within the District.

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Section 5-15. Capital City Downtown Medical District
Commission.
(a) There is created a body politic and corporate under
the corporate name of the Capital City Downtown Medical
District Commission whose general purpose, in addition to and
not in limitation of those purposes and powers set forth in
this Act, is to:
(1) maintain the proper surroundings of and within the
District in order to attract, stabilize, and retain within
the District facilities, buildings, enterprises, and other
establishments permitted under this Act;
(2) provide for the orderly creation, maintenance,
development, and expansion of (i) facilities, buildings,
enterprises, and other establishments permitted under this
Act and (ii) public infrastructure related to the use and
enjoyment of those facilities, buildings, enterprises, and
other establishments;
(3) convene dialogue among leaders in the public and
private sectors on topics and issues associated with
training in the delivery of services and related industry
in the District's program area;
(4) provide support for the attraction and creation of
new businesses and new jobs within the District;
(5) maintain the proper surroundings for a medical
center and a related technology center in order to

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attract, stabilize, and retain within the District
hospitals, clinics, research facilities, educational
facilities, or other facilities permitted under this Act;
and
(6) employ agents and employees necessary to carry out
its purposes.
(b) The Commission has perpetual succession and the power
to contract and be contracted with, to sue and be sued, except
in actions sounding in tort, to plead and be impleaded, to have
and use a common seal, and to alter the same at pleasure. All
actions sounding in tort against the Commission shall be
prosecuted in the Court of Claims. The principal office of the
Commission shall be in the City of Springfield.
(c) The Commission shall consist of the following members:
(1) 5 members appointed by the Governor, with the
advice and consent of the Senate;
(2) 3 members appointed by the Mayor of Springfield,
with the advice and consent of the Springfield City
Council; and
(3) 3 members appointed by the Chairperson of the
County Board of Sangamon County.
One of each of the 3 members appointed by the Mayor of
Springfield and by the Chairperson of the County Board of
Sangamon County shall be a representative of a recognized
neighborhood organization that has a legitimate interest in
the development and improvement of the District, as determined

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by the Mayor of the City of Springfield and the Chairperson of
the County Board of Sangamon County, respectively. The initial
members of the Commission appointed by the Governor shall be
appointed for terms ending, respectively, on the second,
third, fourth, fifth, and sixth anniversaries of their
appointments. The initial members appointed by the Mayor of
Springfield and by the Chairperson of the County Board of
Sangamon County shall be appointed for terms ending,
respectively, on the second, third, and fourth anniversaries
of their appointments. Thereafter, all the members shall be
appointed to hold office for a term of 5 years and until their
successors are appointed as provided in this Act.
(d) Any vacancy in the membership of the Commission
occurring by reason of the death, resignation,
disqualification, removal, or inability or refusal to act of
any of the members of the Commission shall be filled by the
authority that had appointed the particular member. The
authority that appointed the particular member shall appoint a
replacement to fill the vacancy for the unexpired term of
office of that particular member. A vacancy caused by the
expiration of the period for which the member was appointed
shall be filled by a new appointment for a term of 5 years from
the date of the expiration of the prior 5-year term
notwithstanding when the appointment is actually made. The
Commission shall obtain, under the provisions of the Personnel
Code, such personnel as the Commission shall deem advisable to

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carry out the purposes of this Act and the work of the
Commission.
(e) The Commission shall hold regular meetings annually
for the election of a President, Vice-President, Secretary,
and Treasurer from among its members, for the adoption of a
budget, and for such other business as may properly come
before it. The Commission shall establish the duties and
responsibilities of its officers by rule. The President or any
4 members of the Commission may call special meetings of the
Commission. Each Commissioner shall take an oath of office for
the faithful performance of his or her duties. The Commission
4 may not transact business at a meeting of the Commission
unless there is a quorum consisting of at least 6
Commissioners present at the meeting. Meetings may be held by
telephone conference or by other means through which all
persons participating in the meeting can communicate with each
other.
(f) The Commission shall submit to the General Assembly,
not later than March 1 of each odd-numbered year, a detailed
report covering its operations for the 2 preceding calendar
years and a statement of its program for the next 2 years. The
requirement for reporting to the General Assembly shall be
satisfied by filing copies of the report as required by
Section 3.1 of the General Assembly Organization Act, and by
filing such additional copies with the State Government Report
Distribution Center for the General Assembly as is required

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under paragraph (t) of Section 7 of the State Library Act.
(g) The Auditor General shall conduct audits of the
Commission in the same manner as the Auditor General conducts
audits of State agencies under the Illinois State Auditing
Act.
(h) Neither the Commission nor the District has any power
to tax.
(i) The Commission is a public body and subject to the Open
Meetings Act and the Freedom of Information Act.
Section 5-20. Grants; loans; contracts. The Commission may
apply for and accept grants, loans, or appropriations from the
State of Illinois, the federal government, any State or
federal agency or instrumentality, any unit of local
government, or any other person or entity to be used for any of
the purposes of the District. The Commission may enter into
any agreement with the State of Illinois, the federal
government, any State or federal instrumentality, any unit of
local government, or any other person or entity in relation to
the grants, matching grants, loans, or appropriations. The
Commission also may, by contractual agreement, accept and
collect assessments or fees from entities who enter into a
contractual agreement for District enhancement and
improvements, common area shared services, shared facilities,
or other activities or expenditures in furtherance of the
purposes of this Act. The Commission may provide assistance,

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including grants, loans, land conveyances, and other
incentives to entities, including, but not limited to,
neighborhood organizations, to induce development and
revitalization consistent with this Act and for the purpose of
benefiting the community. The Commission may also provide
programmatic assistance, operational assistance, or facilities
to support academic, professional, and training programs
located within the District if it finds that such support
advances the purposes of this Act.
Section 5-25. Property; acquisition. The Commission may
acquire the fee simple title to real property lying within the
District and personal property required for its purposes, by
gift, donation, purchase, or otherwise. Title shall be taken
in the corporate name of the Commission. The Commission may
acquire, by lease or other means, any real property lying
within the District and personal property found by the
Commission to be necessary for its purposes and to which the
Commission finds that it need not acquire the fee simple title
for carrying out of those purposes. The Commission shall hold
a public hearing in accordance with Section 5-80 of this Act
before acquiring the title to property. All real and personal
property within the District, except that owned and used for
purposes authorized under this Act by medical institutions or
allied educational institutions, hospitals, dispensaries,
clinics, dormitories or homes for the nurses, doctors,

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students, instructors, or other officers or employees of those
institutions located in the District, or any real property
that is used for offices or for recreational purposes in
connection with those institutions, or any improved
residential property within a currently effective historical
district properly designated under a federal statute or a
State or local statute that has been certified by the
Secretary of the Interior to the Secretary of the Treasury as
containing criteria that will substantially achieve the
purpose of preserving and rehabilitating buildings of
historical significance to the district, may be acquired by
the Commission in its corporate name under the provisions for
the exercise of the right of eminent domain under the Eminent
Domain Act. The Commission may undertake environmental
remediation, demolition, site preparation, interim site
management, and other predevelopment activities necessary to
prepare property for redevelopment, transfer, or related
activities. The Commission has no quick-take powers, no zoning
powers, and no power to establish or enforce building codes.
The Commission may not acquire any property pursuant to this
Section before a comprehensive master plan has been approved
under Section 5-75.
Section 5-30. Construction. After a public hearing in
accordance with Section 5-80 of this Act, the Commission may,
in its corporate capacity, construct or cause to be

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constructed within the District, any building, structure, or
other ancillary or related facilities that the Commission may,
from time to time, determine are to be established and
operated (i) for the carrying out of any aspect of the
Commission's purposes as set forth in this Act or (ii) for any
uses the Commission shall determine will support and nurture
facilities and uses permitted by this Act. All such structures
and improvements shall be erected and constructed in
accordance with the provisions of the Illinois Procurement
Code that apply to State agencies. No construction may be
undertaken pursuant to this Section before a comprehensive
master plan has been approved under Section 5-75.
Section 5-35. Relocation assistance. The Commission shall
provide relocation assistance to persons and entities
displaced by the Commission's acquisition of property and
improvement of the District. Relocation assistance shall not
be less than the amount provided under the federal Uniform
Relocation Assistance and Real Property Acquisition Policies
Act of 1970 and the regulations under that Act, including the
eligibility criteria. The Commission may enter into long-term
development, land-use, or operating agreements with
institutions, including hospitals, universities, State
agencies, or nonprofit organizations. Relocation assistance
may include assistance with the moving of a residential unit
to a new location, and the Commission may develop, own, lease,

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sublease, or manage facilities used for academic instruction,
professional education, or research, including facilities
owned or operated by colleges, universities, or their
affiliates. The Commission shall establish a single point of
contact for all relocation assistance under this Section.
Section 5-40. Bonds. To obtain the funds necessary for
financing the acquisition, construction, maintenance, and
rehabilitation of facilities and equipment within the
District, and for the operation of the District as set forth in
this Act, the Commission may borrow money from any public or
private agency, department, corporation, or person. In
evidence of and as security for funds borrowed, the Commission
may issue revenue bonds in its corporate capacity to be
payable from the revenues derived from the operation of the
institutions or buildings owned, leased, or operated by or on
behalf of the Commission, but the bonds shall in no event
constitute an indebtedness of the Commission or a claim
against the property of the Commission. The bonds may be
issued in such denominations as may be expedient, in such
amounts, and at such rates of interest as the Commission shall
deem necessary to provide sufficient funds to pay all the
costs authorized under this Section. The bonds shall be
executed by the President of the Commission, attested by the
Secretary, and sealed with the Commission's corporate seal. If
either of those officers of the Commission who shall have

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signed or attested any of the bonds shall have ceased to be
such officer before delivery of the bonds, the signature of
the officer shall be valid and sufficient to the same effect as
if the officer had remained in office at the time of delivery.
The Commission shall furnish the State Comptroller with a
record of all bonds issued under this Act.
Section 5-45. Power to sell or lease. The Commission may
sell, convey, transfer, or lease, at fair market value, any
title or interest in real property owned by it to any person or
persons, to be used, subject to the restrictions of this Act,
for the purposes stated in this Act, for the purpose of serving
persons using the facilities offered within the District, or
for the carrying out of any aspect of the Commission's
purposes as set forth in Section 5-15 of this Act, subject to
the restrictions as to the use of the real property as the
Commission shall determine will carry out the purposes of this
Act. To assure that the use of the real property so sold or
leased is in accordance with the provisions of this Act, the
Commission shall inquire into and satisfy itself concerning
the financial ability of the purchaser to complete the project
for which the real property is sold or leased. The purchaser or
lessee shall submit, in writing, a plan to the Commission of
the purchaser's or lessee's ability to complete the project
for which the real property is sold or leased. Under the
required plan, the purchaser or lessee shall undertake (1) to

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use the land for the purposes designated in the plan so
presented; (2) to commence and complete the construction of
the buildings or other structures to be included in the
project within the time the Commission fixes as reasonable;
and (3) to comply with such other conditions as the Commission
shall determine are necessary to carry out the project. All
conveyances and leases authorized in this Section shall be on
condition that in the event the use of property is for other
purposes than prescribed in this Act, or there is nonuse for a
period of one year, title to the property shall revert to the
Commission. All conveyances and leases made by the Commission
to any corporation or person for the use of serving the
residents or any person using the facilities offered within
the District shall be on condition that in the event of a
violation of any of the restrictions as to the use of the
property according to this Act, and the Commission's
determinations of projects that will carry out the purposes of
this Act, title to the property shall revert to the
Commission. If, however, the Commission finds that financing
necessary for the acquisition or lease of any real estate or
for the construction or improvement of any building to be used
for purposes prescribed in this Act cannot be obtained if
title to the land, building, or improvement is subject to such
a reverter provision, the Commission may cause the real
property to be conveyed free of a reverter provision, provided
that at least 7 members of the Commission vote in favor

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thereof. The finding that the title shall be conveyed free of a
reverter provision shall be made at a public hearing in
accordance with Section 5-80 of this Act and notice provided
in accordance with Section 5-50 of this Act. The Commission
may also provide, in the conveyances, leases, or other
documentation, provisions for notice of such violations or
default and the cure thereof for the benefit of any lender or
mortgagee as the Commission shall determine are appropriate.
If, at a regularly scheduled meeting, the Commission resolves
that a parcel of real estate leased by it, or in which it has
sold the fee simple title or any lesser estate, is not being
used for the purposes prescribed in this Act or has been in
nonuse for a period of one year, the Commission may file a
lawsuit in the Circuit Court of Sangamon County to enforce the
terms of the sale or lease. If a reverter of title to any
property is ordered by the court under the terms of this Act,
the interest of the Commission shall be subject to any
existing valid mortgage or trust deed in the nature of a
mortgage, but if the title is acquired through foreclosure of
that mortgage or trust deed or by deed in lieu of foreclosure
of that mortgage or trust deed, then the title to the property
shall not revert, but shall be subject to the restrictions as
to use, but not any penalty for nonuse contained in this Act
with respect to any mortgagee in possession or its successor
or assigns. No conveyance of real property shall be executed
by the Commission without the prior written approval of the

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Governor. The Commission may not sell, convey, transfer, or
lease any property pursuant to this Section before a
comprehensive master plan has been approved under Section
5-75.
Section 5-50. Notice. Before holding any public hearing
prescribed in Section 5-45 of this Act, or any meeting
regarding the passage of any resolution to file a lawsuit, the
Commission shall give notice to the grantee or lessee, or his
or her legal representatives, successors, or assigns, of the
time and place of the proceeding. The notice shall be
accompanied by a statement signed by the Secretary of the
Commission, or by any person authorized by the Commission to
sign the same, setting forth any act or things done or omitted
to be done in violation, or claimed to be in violation, of any
restriction as to the use of the property, whether the
restriction be prescribed in any of the terms of this Act or by
any restriction as to the use of the property determined by the
Commission under the terms of this Act. The notice of the time
and place fixed for the proceeding shall also be given to such
person or persons as the Commission shall deem necessary. The
notice may be given by registered mail, addressed to the
grantee, lessee, or legal representatives, successors, or
assigns, at the last known address of the grantee, lessee, or
legal representatives, successors, or assigns.

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Section 5-55. Rules. The Commission may adopt reasonable
and proper rules, in accordance with the Illinois
Administrative Procedure Act, relative to the exercise of its
powers, and proper rules to govern its proceedings, to
regulate the mode and manner of all hearings held by it or at
its direction, and to alter and amend those rules.
Section 5-60. Official documents. Copies of all official
documents, findings, and orders of the Commission, certified
by a Commissioner or by the Secretary of the Commission to be
true copies of the originals, and under the official seal of
the Commission, shall be evidence in like manner as the
originals.
Section 5-65. Judicial review. All final administrative
decisions of the Commission shall be subject to judicial
review pursuant to the provisions of the Administrative Review
Law, and all amendments and modifications thereof, and the
rules adopted pursuant thereto. The term "administrative
decision" is defined as in Section 3-101 of the Code of Civil
Procedure. Any party may obtain judicial review of a final
order or administrative decision of the Commission in the
Circuit Court of Sangamon County only under and in accordance
with the provisions of the Administrative Review Law and its
adopted rules. The Circuit Court shall take judicial notice of
all the rules of practice and procedure of the Commission.

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Section 5-70. Parks. The Commission may set apart any part
of the District as a park, except those areas owned, operated,
or used for purposes authorized under this Act by
organizations or institutions engaged in the delivery or
conduct of health care services, education, or research. The
Commission may construct, control, and maintain the same, or
may provide by contract with the Springfield Park District,
the City of Springfield, or the Department of Natural
Resources, as applicable, for the construction, control, and
maintenance of any area within the District set apart as a
park.
Section 5-75. Master plan; improvement and management of
District. The Commission shall approve a comprehensive master
plan for the orderly development and management of all
property within the District. The master plan, and any
amendment to the master plan, shall only take effect once
delivered to the Springfield City Council. The Commission
shall take the actions permitted to be taken by it under this
Act as it may determine are appropriate to provide conditions
most favorable for the special care and treatment of the sick
and injured and for the study of disease and for any other
purpose of this Act. In the master plan, the Commission may
provide for shared services and facilities within the District
for the accredited higher education institutions and the

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licensed non-profit acute care hospitals within the District.
Section 5-80. Public hearing. The Commission shall conduct
a public hearing prior to either (i) acquiring real or
personal property within the District through Section 5-25 of
this Act, (ii) constructing any building or structure under
Section 5-30 of this Act, (iii) conveying property under
Section 5-45 of this Act, or (iv) approving a comprehensive
master plan under Section 5-75 of this Act. The Commission
shall also conduct a public hearing whenever it is otherwise
required by law to do so, and may conduct a public hearing
whenever it may elect to do so. The Commission shall conduct
the public hearing called by it in accordance with the
requirements of the law mandating it, if any, or in accordance
with the provisions of this Section if either the law
mandating it is silent as to the procedures for its holding or
if the Commission elects to hold a public hearing in the
absence of any law mandating it. In the absence of any law, or
of any procedures in any law, mandating the holding of a public
hearing, the Commission may authorize a Commissioner or other
person of legal age to conduct a hearing. The Commissioner or
other authorized person has the power to administer oaths and
affirmations, take the testimony of witnesses, take and
receive the production of papers, books, records, accounts,
and documents, receive pertinent evidence, and certify the
record of the hearing. The record of the hearing shall become

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part of the Commission's record. Notice of the time, place,
and purpose of the hearing shall be given by a single
publication notice in a secular newspaper of general
circulation in the City of Springfield at least 10 days before
the date of the hearing.
Section 5-85. Jurisdiction. This Act shall not be
construed to limit the jurisdiction of the City of Springfield
to territory outside the limits of the District nor to impair
any power now possessed by or hereafter granted to the City of
Springfield or to cities generally. Property owned by and
exclusively used by the Commission shall be exempt from
taxation.
Section 5-90. Disposition of money; income fund. All money
received by the Commission from the sale or lease of any
property, in excess of the amount expended by the Commission
for authorized purposes under this Act or as may be necessary
to satisfy the obligation of any revenue bond issued pursuant
to Section 5-40, shall be deposited into the Capital City
Downtown Medical District Income Fund, a special fund created
in the State treasury. The Commission may use all money
received as rentals for the purposes of planning, acquisition,
and development of property within the District, for the
operation, maintenance, and improvement of property of the
Commission, and for all purposes and powers set forth in this

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Act. All moneys held pursuant to this Section shall be
maintained in a depository approved by the State Treasurer.
The Auditor General shall, at least biennially, audit or cause
to be audited all records and accounts of the Commission
pertaining to the operation of the District.
Section 5-95. Assumption. As allowable under State or
federal law, any and all assets, holdings, contracts and
agreements of the Mid-Illinois Medical District or
Mid-Illinois Medical District Commission established under the
Mid-Illinois Medical District Act shall hereby be conveyed or
assigned to the Capital City Downtown Medical District or the
Capital City Downtown Medical District Commission established
under this Act.
ARTICLE 10
Section 10-5. The Illinois Enterprise Zone Act is amended
by changing Section 5.4.1 as follows:
(20 ILCS 655/5.4.1)
Sec. 5.4.1. Adoption of Tax Increment Financing.
(a) If (i) a redevelopment project area is, will be, or has
been created by a municipality under Division 74.4 of the
Illinois Municipal Code, (ii) the redevelopment project area
contains property that is located in an enterprise zone, (iii)

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the municipality adopts an amendment to the enterprise zone
designating ordinance pursuant to Section 5.4 of this Act
specifically concerning the abatement of taxes on property
located within a redevelopment project area created pursuant
to Division 74.4 of the Illinois Municipal Code, and (iv) the
Department certifies the ordinance amendment, then the
property that is located in both the enterprise zone and the
redevelopment project area shall not be eligible for the
abatement of taxes under Section 18-170 of the Property Tax
Code.
No business enterprise or expansion or individual,
however, that has constructed a new improvement or renovated
or rehabilitated an existing improvement and has received an
abatement on the improvement under Section 18-170 of the
Property Tax Code shall be denied any benefit previously
extended within the zone pursuant to this Act or pursuant to
any other Illinois law providing benefits specifically to or
within enterprise zones. Moreover, if the business enterprise
or individual presents evidence to the municipality within 30
days after the adoption by the municipality of an amendment to
the designating ordinance the sufficiency of which shall be
determined by findings of the corporate authorities made
within 30 days of the receipt of such evidence by the
municipality, that before the date of the notice of the public
hearing provided by the municipality regarding the amendment
to the designating ordinance (i) the business enterprise or

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expansion or individual was committed to locate within the
enterprise zone, (ii) substantial and binding financial
obligations were made toward towards the development of the
enterprise, and (iii) those commitments were made in
reasonable reliance on the benefits and programs that were
applicable to the enterprise or individual by reason of the
enterprise zone, then the enterprise or expansion or
individual shall not be denied any benefit previously extended
within the zone pursuant to this Act or pursuant to any other
Illinois law providing benefits specifically to or within
enterprise zones.
(b) This Section applies to all property located within
both a redevelopment project area adopted under Division 74.4
of the Illinois Municipal Code and an enterprise zone even if
the redevelopment project area or the enterprise zone was
adopted before the effective date of this amendatory Act of
1997.
(c) After July 1, 1997, if (i) a redevelopment project
area is created by a municipality under Division 74.4 of the
Illinois Municipal Code and (ii) the redevelopment project
area contains property that is located in an enterprise zone,
the municipality must adopt an amendment to the certified
enterprise zone designating ordinance under Section 5.4 that
property that is located in both the enterprise zone and the
redevelopment project area shall not be eligible for any
abatement of taxes under Section 18-170 of the Property Tax

10400HB0910ham003 - 35 - LRB104 04808 HLH 37059 a
Code for new improvements or the renovation or rehabilitation
of existing improvements, except as provided in subsections
(e) and (f).
(d) In declaratory judgment actions under this Section,
the Department and the designating municipality shall be
necessary parties defendant.
(e) Notwithstanding any other provision of law, if a
municipality has adopted an enterprise zone pursuant to this
Act and subsequently establishes a redevelopment project area
pursuant to the Tax Increment Allocation Redevelopment Act in
the Illinois Municipal Code, the municipality may, by
amendment to the certified enterprise zone designating
ordinance, provide for a partial abatement of taxes under
Section 18-170 of the Property Tax Code for property located
within both the enterprise zone and the redevelopment project
area. Any portion of property taxes not abated shall be
subject to tax increment financing, and the terms of the
applicable redevelopment project area agreement adopted
pursuant to the Tax Increment Allocation Redevelopment Act.
(f) Notwithstanding any other provision of law, if a
municipality has established a redevelopment project area
pursuant to the Tax Increment Allocation Redevelopment Act in
the Illinois Municipal Code and subsequently adopts an
enterprise zone that includes property within the
redevelopment project area, the municipality may, subject to
the redevelopment project area plan and agreement, provide for

10400HB0910ham003 - 36 - LRB104 04808 HLH 37059 a
a partial abatement of taxes under Section 18-170 of the
Property Tax Code for property located within both the
enterprise zone and the redevelopment project area. No such
abatement shall reduce or impair any tax increment revenues
pledged to secure outstanding bonds, notes, or other
obligations of the redevelopment project area. Any portion of
property taxes not abated shall remain subject to tax
increment financing and the terms of the applicable
redevelopment project area agreement adopted pursuant to
Division 74.4 of the Illinois Municipal Code.
(Source: P.A. 90-258, eff. 7-30-97.)
Section 10-10. The Illinois State Auditing Act is amended
by changing Section 3-1 as follows:
(30 ILCS 5/3-1) (from Ch. 15, par. 303-1)
(Text of Section before amendment by P.A. 104-457)
Sec. 3-1. Jurisdiction of Auditor General. The Auditor
General has jurisdiction over all State agencies to make post
audits and investigations authorized by or under this Act or
the Constitution.
The Auditor General has jurisdiction over local government
agencies and private agencies only:
(a) to make such post audits authorized by or under
this Act as are necessary and incidental to a post audit of
a State agency or of a program administered by a State

10400HB0910ham003 - 37 - LRB104 04808 HLH 37059 a
agency involving public funds of the State, but this
jurisdiction does not include any authority to review
local governmental agencies in the obligation, receipt,
expenditure or use of public funds of the State that are
granted without limitation or condition imposed by law,
other than the general limitation that such funds be used
for public purposes;
(b) to make investigations authorized by or under this
Act or the Constitution; and
(c) to make audits of the records of local government
agencies to verify actual costs of state-mandated programs
when directed to do so by the Legislative Audit Commission
at the request of the State Board of Appeals under the
State Mandates Act.
In addition to the foregoing, the Auditor General may
conduct an audit of the Metropolitan Pier and Exposition
Authority, the Regional Transportation Authority, the Suburban
Bus Division, the Commuter Rail Division and the Chicago
Transit Authority and any other subsidized carrier when
authorized by the Legislative Audit Commission. Such audit may
be a financial, management or program audit, or any
combination thereof.
The audit shall determine whether they are operating in
accordance with all applicable laws and regulations. Subject
to the limitations of this Act, the Legislative Audit
Commission may by resolution specify additional determinations

10400HB0910ham003 - 38 - LRB104 04808 HLH 37059 a
to be included in the scope of the audit.
In addition to the foregoing, the Auditor General must
also conduct a financial audit of the Illinois Sports
Facilities Authority's expenditures of public funds in
connection with the reconstruction, renovation, remodeling,
extension, or improvement of all or substantially all of any
existing "facility", as that term is defined in the Illinois
Sports Facilities Authority Act.
The Auditor General may also conduct an audit, when
authorized by the Legislative Audit Commission, of any
hospital which receives 10% or more of its gross revenues from
payments from the State of Illinois, Department of Healthcare
and Family Services (formerly Department of Public Aid),
Medical Assistance Program.
The Auditor General is authorized to conduct financial and
compliance audits of the Illinois Distance Learning Foundation
and the Illinois Conservation Foundation.
As soon as practical after August 18, 1995 (the effective
date of Public Act 89-386), the Auditor General shall conduct
a compliance and management audit of the City of Chicago and
any other entity with regard to the operation of Chicago
O'Hare International Airport, Chicago Midway Airport and
Merrill C. Meigs Field. The audit shall include, but not be
limited to, an examination of revenues, expenses, and
transfers of funds; purchasing and contracting policies and
practices; staffing levels; and hiring practices and

10400HB0910ham003 - 39 - LRB104 04808 HLH 37059 a
procedures. When completed, the audit required by this
paragraph shall be distributed in accordance with Section
3-14.
The Auditor General must conduct an audit of the Health
Facilities and Services Review Board pursuant to Section 19.5
of the Illinois Health Facilities Planning Act.
The Auditor General of the State of Illinois shall
annually conduct or cause to be conducted a financial and
compliance audit of the books and records of any county water
commission organized pursuant to the Water Commission Act of
1985 and shall file a copy of the report of that audit with the
Governor and the Legislative Audit Commission. The filed audit
shall be open to the public for inspection. The cost of the
audit shall be charged to the county water commission in
accordance with Section 6z-27 of the State Finance Act. The
county water commission shall make available to the Auditor
General its books and records and any other documentation,
whether in the possession of its trustees or other parties,
necessary to conduct the audit required. These audit
requirements apply only through July 1, 2007.
The Auditor General must conduct audits of the Rend Lake
Conservancy District as provided in Section 25.5 of the River
Conservancy Districts Act.
The Auditor General must conduct financial audits of the
Southeastern Illinois Economic Development Authority as
provided in Section 70 of the Southeastern Illinois Economic

10400HB0910ham003 - 40 - LRB104 04808 HLH 37059 a
Development Authority Act.
The Auditor General shall conduct a compliance audit in
accordance with subsections (d) and (f) of Section 30 of the
Innovation Development and Economy Act.
The Auditor General shall conduct a compliance audit in
accordance with subsections (d) and (g) of Section 5-45 of the
Statewide Innovation Development and Economy Act.
(Source: P.A. 104-2, eff. 6-16-25.)
(Text of Section after amendment by P.A. 104-457)
Sec. 3-1. Jurisdiction of Auditor General. The Auditor
General has jurisdiction over all State agencies to make post
audits and investigations authorized by or under this Act or
the Constitution.
The Auditor General has jurisdiction over local government
agencies and private agencies only:
(a) to make such post audits authorized by or under
this Act as are necessary and incidental to a post audit of
a State agency or of a program administered by a State
agency involving public funds of the State, but this
jurisdiction does not include any authority to review
local governmental agencies in the obligation, receipt,
expenditure or use of public funds of the State that are
granted without limitation or condition imposed by law,
other than the general limitation that such funds be used
for public purposes;

10400HB0910ham003 - 41 - LRB104 04808 HLH 37059 a
(b) to make investigations authorized by or under this
Act or the Constitution; and
(c) to make audits of the records of local government
agencies to verify actual costs of state-mandated programs
when directed to do so by the Legislative Audit Commission
at the request of the State Board of Appeals under the
State Mandates Act.
In addition to the foregoing, the Auditor General may
conduct an audit of the Metropolitan Pier and Exposition
Authority, the Northern Illinois Transit Authority, the
Suburban Bus Division, the Commuter Rail Division and the
Chicago Transit Authority and any other subsidized carrier
when authorized by the Legislative Audit Commission. Such
audit may be a financial, management or program audit, or any
combination thereof.
The audit shall determine whether they are operating in
accordance with all applicable laws and regulations. Subject
to the limitations of this Act, the Legislative Audit
Commission may by resolution specify additional determinations
to be included in the scope of the audit.
In addition to the foregoing, the Auditor General must
also conduct a financial audit of the Illinois Sports
Facilities Authority's expenditures of public funds in
connection with the reconstruction, renovation, remodeling,
extension, or improvement of all or substantially all of any
existing "facility", as that term is defined in the Illinois

10400HB0910ham003 - 42 - LRB104 04808 HLH 37059 a
Sports Facilities Authority Act.
The Auditor General may also conduct an audit, when
authorized by the Legislative Audit Commission, of any
hospital which receives 10% or more of its gross revenues from
payments from the State of Illinois, Department of Healthcare
and Family Services (formerly Department of Public Aid),
Medical Assistance Program.
The Auditor General is authorized to conduct financial and
compliance audits of the Illinois Distance Learning Foundation
and the Illinois Conservation Foundation.
As soon as practical after August 18, 1995 (the effective
date of Public Act 89-386), the Auditor General shall conduct
a compliance and management audit of the City of Chicago and
any other entity with regard to the operation of Chicago
O'Hare International Airport, Chicago Midway Airport and
Merrill C. Meigs Field. The audit shall include, but not be
limited to, an examination of revenues, expenses, and
transfers of funds; purchasing and contracting policies and
practices; staffing levels; and hiring practices and
procedures. When completed, the audit required by this
paragraph shall be distributed in accordance with Section
3-14.
The Auditor General must conduct an audit of the Health
Facilities and Services Review Board pursuant to Section 19.5
of the Illinois Health Facilities Planning Act.
The Auditor General of the State of Illinois shall

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annually conduct or cause to be conducted a financial and
compliance audit of the books and records of any county water
commission organized pursuant to the Water Commission Act of
1985 and shall file a copy of the report of that audit with the
Governor and the Legislative Audit Commission. The filed audit
shall be open to the public for inspection. The cost of the
audit shall be charged to the county water commission in
accordance with Section 6z-27 of the State Finance Act. The
county water commission shall make available to the Auditor
General its books and records and any other documentation,
whether in the possession of its trustees or other parties,
necessary to conduct the audit required. These audit
requirements apply only through July 1, 2007.
The Auditor General must conduct audits of the Rend Lake
Conservancy District as provided in Section 25.5 of the River
Conservancy Districts Act.
The Auditor General must conduct financial audits of the
Southeastern Illinois Economic Development Authority as
provided in Section 70 of the Southeastern Illinois Economic
Development Authority Act.
The Auditor General shall conduct a compliance audit in
accordance with subsections (d) and (f) of Section 30 of the
Innovation Development and Economy Act.
The Auditor General shall conduct a compliance audit in
accordance with subsections (d) and (g) of Section 5-45 of the
Statewide Innovation Development and Economy Act.

10400HB0910ham003 - 44 - LRB104 04808 HLH 37059 a
(Source: P.A. 104-2, eff. 6-16-25; 104-457, eff. 6-1-26.)
Section 10-15. The State Finance Act is amended by
changing Sections 6z-18 and 6z-20 and by adding Section 5.1038
as follows:
(30 ILCS 105/5.1038 new)
Sec. 5.1038. The Capital City Downtown Medical District
Income Fund.
(30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
Sec. 6z-18. Local Government Tax Fund. A portion of the
money paid into the Local Government Tax Fund from sales of
tangible personal property taxed at the 1% rate under the
Retailers' Occupation Tax Act and the Service Occupation Tax
Act, which occurred in municipalities, shall be distributed to
each municipality based upon the sales which occurred in that
municipality. The remainder shall be distributed to each
county based upon the sales which occurred in the
unincorporated area of that county.
Moneys transferred from the Grocery Tax Replacement Fund
to the Local Government Tax Fund under Section 6z-130 shall be
treated under this Section in the same manner as if they had
been remitted with the return on which they were reported.
A portion of the money paid into the Local Government Tax
Fund from the 6.25% general use tax rate on the selling price

10400HB0910ham003 - 45 - LRB104 04808 HLH 37059 a
of tangible personal property which is purchased outside
Illinois at retail from a retailer and which is titled or
registered by any agency of this State's government shall be
distributed to municipalities as provided in this paragraph.
Each municipality shall receive the amount attributable to
sales for which Illinois addresses for titling or registration
purposes are given as being in such municipality. The
remainder of the money paid into the Local Government Tax Fund
from such sales shall be distributed to counties. Each county
shall receive the amount attributable to sales for which
Illinois addresses for titling or registration purposes are
given as being located in the unincorporated area of such
county.
A portion of the money paid into the Local Government Tax
Fund from the 6.25% general rate (and, beginning July 1, 2000
and through December 31, 2000, the 1.25% rate on motor fuel and
gasohol, and beginning on August 6, 2010 through August 15,
2010, and beginning again on August 5, 2022 through August 14,
2022, the 1.25% rate on sales tax holiday items) on sales
subject to taxation under the Retailers' Occupation Tax Act
and the Service Occupation Tax Act, which occurred in
municipalities, shall be distributed to each municipality,
based upon the sales which occurred in that municipality. The
remainder shall be distributed to each county, based upon the
sales which occurred in the unincorporated area of such
county.

10400HB0910ham003 - 46 - LRB104 04808 HLH 37059 a
For the purpose of determining allocation to the local
government unit, 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.
Whenever the Department determines that a refund of money
paid into the Local Government Tax Fund should be made to a
claimant instead of issuing a credit memorandum, the
Department shall notify the State Comptroller, who shall cause
the order to be drawn for the amount specified, and to the
person named, in such notification from the Department. Such
refund shall be paid by the State Treasurer out of the Local
Government Tax Fund.
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
during the second preceding calendar month for sales within a
STAR bond district and deposited into the Local Government Tax
Fund, less 3% of that amount, which shall be transferred into

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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 the Innovation
Development and Economy Act.
As soon as possible after the first day of each month,
beginning July 1, 2026, 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 Statewide
Innovation Development and Economy Act, collected during the
second preceding calendar month for sales within a STAR bond
district and deposited into the Local Government Tax Fund,
less 3% of that amount, which shall be transferred to 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 the Statewide Innovation
Development and Economy Act.
After the monthly transfers transfer to the STAR Bonds
Revenue Fund, on or before the 25th day of each calendar month,
the Department shall prepare and certify to the Comptroller
the disbursement of stated sums of money to named
municipalities and counties, the municipalities and counties
to be those entitled to distribution of taxes or penalties
paid to the Department during the second preceding calendar
month. The amount to be paid to each municipality or county
shall be the amount (not including credit memoranda) collected

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during the second preceding calendar month by the Department
and paid into the Local Government Tax Fund, 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, and not
including any amount which the Department determines is
necessary to offset any amounts which are payable to a
different taxing body but were erroneously paid to the
municipality or county, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund. Within 10 days
after receipt, by the Comptroller, of the disbursement
certification to the municipalities and counties, 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.
When certifying the amount of monthly disbursement to a
municipality or county under this Section, the Department
shall increase or decrease that amount by an amount necessary
to offset any misallocation of previous disbursements. The
offset amount shall be the amount erroneously disbursed within
the 6 months preceding the time a misallocation is discovered.
The provisions directing the distributions from the
special fund in the State treasury provided for in this
Section shall constitute an irrevocable and continuing

10400HB0910ham003 - 49 - LRB104 04808 HLH 37059 a
appropriation of all amounts as provided herein. The State
Treasurer and State Comptroller are hereby authorized to make
distributions as provided in this Section.
In construing any development, redevelopment, annexation,
preannexation, or other lawful agreement in effect prior to
September 1, 1990, which describes or refers to receipts from
a county or municipal retailers' occupation tax, use tax or
service occupation tax which now cannot be imposed, such
description or reference shall be deemed to include the
replacement revenue for such abolished taxes, distributed from
the Local Government Tax Fund.
As soon as possible after March 8, 2013 (the effective
date of Public Act 98-3), the State Comptroller shall order
and the State Treasurer shall transfer $6,600,000 from the
Local Government Tax Fund to the Illinois State Medical
Disciplinary Fund.
(Source: P.A. 102-700, Article 60, Section 60-10, eff.
4-19-22; 102-700, Article 65, Section 65-15, eff. 4-19-22;
103-154, eff. 6-30-23.)
(30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20)
(Text of Section before amendment by P.A. 104-457)
Sec. 6z-20. County and Mass Transit District Fund. Of the
money received from the 6.25% general rate (and, beginning
July 1, 2000 and through December 31, 2000, the 1.25% rate on
motor fuel and gasohol, and beginning on August 6, 2010

10400HB0910ham003 - 50 - LRB104 04808 HLH 37059 a
through August 15, 2010, and beginning again on August 5, 2022
through August 14, 2022, the 1.25% rate on sales tax holiday
items) on sales subject to taxation under the Retailers'
Occupation Tax Act and Service Occupation Tax Act and paid
into the County and Mass Transit District Fund, distribution
to the Regional Transportation Authority tax fund, created
pursuant to Section 4.03 of the Regional Transportation
Authority Act, for deposit therein shall be made based upon
the retail sales occurring in a county having more than
3,000,000 inhabitants. The remainder shall be distributed to
each county having 3,000,000 or fewer inhabitants based upon
the retail sales occurring in each such county.
For the purpose of determining allocation to the local
government unit, 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.
Of the money received from the 6.25% general use tax rate
on tangible personal property which is purchased outside
Illinois at retail from a retailer and which is titled or
registered by any agency of this State's government and paid
into the County and Mass Transit District Fund, the amount for

10400HB0910ham003 - 51 - LRB104 04808 HLH 37059 a
which Illinois addresses for titling or registration purposes
are given as being in each county having more than 3,000,000
inhabitants shall be distributed into the Regional
Transportation Authority tax fund, created pursuant to Section
4.03 of the Regional Transportation Authority Act. The
remainder of the money paid from such sales shall be
distributed to each county based on sales for which Illinois
addresses for titling or registration purposes are given as
being located in the county. Any money paid into the Regional
Transportation Authority Occupation and Use Tax Replacement
Fund from the County and Mass Transit District Fund prior to
January 14, 1991, which has not been paid to the Authority
prior to that date, shall be transferred to the Regional
Transportation Authority tax fund.
Whenever the Department determines that a refund of money
paid into the County and Mass Transit District Fund should be
made to a claimant instead of issuing a credit memorandum, the
Department shall notify the State Comptroller, who shall cause
the order to be drawn for the amount specified, and to the
person named, in such notification from the Department. Such
refund shall be paid by the State Treasurer out of the County
and Mass Transit District Fund.
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

10400HB0910ham003 - 52 - LRB104 04808 HLH 37059 a
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected
during the second preceding calendar month for sales within a
STAR bond district and deposited into the County and Mass
Transit District Fund, less 3% of that amount, which shall be
transferred 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 the
Innovation Development and Economy Act.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to the Regional
Transportation Authority and to named counties, the counties
to be those entitled to distribution, as hereinabove provided,
of taxes or penalties paid to the Department during the second
preceding calendar month. The amount to be paid to the
Regional Transportation Authority and each county having
3,000,000 or fewer inhabitants shall be the amount (not
including credit memoranda) collected during the second
preceding calendar month by the Department and paid into the
County and Mass Transit District Fund, 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, and not

10400HB0910ham003 - 53 - LRB104 04808 HLH 37059 a
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
Regional Transportation Authority or county, and not including
any amounts that are transferred to the STAR Bonds Revenue
Fund, less 1.5% of the amount to be paid to the Regional
Transportation Authority, which shall be transferred into the
Tax Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the Regional
Transportation Authority, 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 Regional Transportation Authority,
counties, and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in such certification.
When certifying the amount of a monthly disbursement to
the Regional Transportation Authority or to a county under
this Section, the Department shall increase or decrease that
amount by an amount necessary to offset any misallocation of
previous disbursements. The offset amount shall be the amount
erroneously disbursed within the 6 months preceding the time a
misallocation is discovered.

10400HB0910ham003 - 54 - LRB104 04808 HLH 37059 a
The provisions directing the distributions from the
special fund in the State treasury Treasury provided for in
this Section and from the Regional Transportation Authority
tax fund created by Section 4.03 of the Regional
Transportation Authority Act shall constitute an irrevocable
and continuing appropriation of all amounts as provided
herein. The State Treasurer and State Comptroller are hereby
authorized to make distributions as provided in this Section.
In construing any development, redevelopment, annexation,
preannexation or other lawful agreement in effect prior to
September 1, 1990, which describes or refers to receipts from
a county or municipal retailers' occupation tax, use tax or
service occupation tax which now cannot be imposed, such
description or reference shall be deemed to include the
replacement revenue for such abolished taxes, distributed from
the County and Mass Transit District Fund or Local Government
Distributive Fund, as the case may be.
(Source: P.A. 102-700, eff. 4-19-22.)
(Text of Section after amendment by P.A. 104-457)
Sec. 6z-20. County and Mass Transit District Fund. Of the
money received from the 6.25% general rate (and, beginning
July 1, 2000 and through December 31, 2000, the 1.25% rate on
motor fuel and gasohol, and beginning on August 6, 2010
through August 15, 2010, and beginning again on August 5, 2022
through August 14, 2022, the 1.25% rate on sales tax holiday

10400HB0910ham003 - 55 - LRB104 04808 HLH 37059 a
items) on sales subject to taxation under the Retailers'
Occupation Tax Act and Service Occupation Tax Act and paid
into the County and Mass Transit District Fund, distribution
to the Northern Illinois Transit Authority tax fund, created
pursuant to Section 4.03 of the Northern Illinois Transit
Authority Act, for deposit therein shall be made based upon
the retail sales occurring in a county having more than
3,000,000 inhabitants. The remainder shall be distributed to
each county having 3,000,000 or fewer inhabitants based upon
the retail sales occurring in each such county.
For the purpose of determining allocation to the local
government unit, 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.
Of the money received from the 6.25% general use tax rate
on tangible personal property which is purchased outside
Illinois at retail from a retailer and which is titled or
registered by any agency of this State's government and paid
into the County and Mass Transit District Fund, the amount for
which Illinois addresses for titling or registration purposes
are given as being in each county having more than 3,000,000

10400HB0910ham003 - 56 - LRB104 04808 HLH 37059 a
inhabitants shall be distributed into the Northern Illinois
Transit Authority tax fund, created pursuant to Section 4.03
of the Northern Illinois Transit Authority Act. The remainder
of the money paid from such sales shall be distributed to each
county based on sales for which Illinois addresses for titling
or registration purposes are given as being located in the
county. Any money paid into the Northern Illinois Transit
Authority Occupation and Use Tax Replacement Fund from the
County and Mass Transit District Fund prior to January 14,
1991, which has not been paid to the Authority prior to that
date, shall be transferred to the Northern Illinois Transit
Authority tax fund.
Whenever the Department determines that a refund of money
paid into the County and Mass Transit District Fund should be
made to a claimant instead of issuing a credit memorandum, the
Department shall notify the State Comptroller, who shall cause
the order to be drawn for the amount specified, and to the
person named, in such notification from the Department. Such
refund shall be paid by the State Treasurer out of the County
and Mass Transit District Fund.
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

10400HB0910ham003 - 57 - LRB104 04808 HLH 37059 a
during the second preceding calendar month for sales within a
STAR bond district and deposited into the County and Mass
Transit District Fund, less 3% of that amount, which shall be
transferred 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 the
Innovation Development and Economy Act.
As soon as possible after the first day of each month,
beginning July 1, 2026, 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 Statewide
Innovation Development and Economy Act, collected during the
second preceding calendar month for sales within a STAR bond
district and deposited into the County and Mass Transit
District Fund, less 3% of that amount, which shall be
transferred 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 the
Statewide Innovation Development and Economy Act.
After the monthly transfers 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 Northern
Illinois Transit Authority and to named counties, the counties
to be those entitled to distribution, as hereinabove provided,

10400HB0910ham003 - 58 - LRB104 04808 HLH 37059 a
of taxes or penalties paid to the Department during the second
preceding calendar month. The amount to be paid to the
Northern Illinois Transit Authority and each county having
3,000,000 or fewer inhabitants shall be the amount (not
including credit memoranda) collected during the second
preceding calendar month by the Department and paid into the
County and Mass Transit District Fund, 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, 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
Northern Illinois Transit Authority or county, and not
including any amounts that are transferred to the STAR Bonds
Revenue Fund, less 1.5% of the amount to be paid to the
Northern Illinois Transit Authority, which shall be
transferred into the Tax Compliance and Administration Fund.
The Department, at the time of each monthly disbursement to
the Northern Illinois Transit Authority, 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 Northern Illinois
Transit Authority, counties, and the Tax Compliance and

10400HB0910ham003 - 59 - LRB104 04808 HLH 37059 a
Administration Fund provided for in this Section to be given
to the Comptroller by the Department, the Comptroller shall
cause the orders to be drawn for the respective amounts in
accordance with the directions contained in such
certification.
When certifying the amount of a monthly disbursement to
the Northern Illinois Transit Authority or to a county under
this Section, the Department shall increase or decrease that
amount by an amount necessary to offset any misallocation of
previous disbursements. The offset amount shall be the amount
erroneously disbursed within the 6 months preceding the time a
misallocation is discovered.
The provisions directing the distributions from the
special fund in the State treasury provided for in this
Section and from the Northern Illinois Transit Authority tax
fund created by Section 4.03 of the Northern Illinois Transit
Authority Act shall constitute an irrevocable and continuing
appropriation of all amounts as provided herein. The State
Treasurer and State Comptroller are hereby authorized to make
distributions as provided in this Section.
In construing any development, redevelopment, annexation,
preannexation or other lawful agreement in effect prior to
September 1, 1990, which describes or refers to receipts from
a county or municipal retailers' occupation tax, use tax or
service occupation tax which now cannot be imposed, such
description or reference shall be deemed to include the

10400HB0910ham003 - 60 - LRB104 04808 HLH 37059 a
replacement revenue for such abolished taxes, distributed from
the County and Mass Transit District Fund or Local Government
Distributive Fund, as the case may be.
(Source: P.A. 104-457, eff. 6-1-26.)
(30 ILCS 105/5.593 rep.)
(30 ILCS 105/6z-60 rep.)
Section 10-17. The State Finance Act is amended by
repealing Sections 5.593 and 6z-60.
Section 10-20. The Illinois Income Tax Act is amended by
adding Sections 221.5 and 221.6 as follows:
(35 ILCS 5/221.5 new)
Sec. 221.5. Rehabilitation costs; qualified historic
properties; Capital City Downtown Medical District.
(a) As used in this Section:
"Phased rehabilitation" means a project that is completed
in phases, as defined under Section 47 of the federal Internal
Revenue Code and pursuant to National Park Service regulations
at 36 C.F.R. 67.
"Placed in service" means the date when the property is
placed in a condition or state of readiness and availability
for a specifically assigned function as defined under Section
47 of the federal Internal Revenue Code and federal Treasury
Regulation Sections 1.46 and 1.48.

10400HB0910ham003 - 61 - LRB104 04808 HLH 37059 a
"Qualified expenditure" means all the costs and expenses
defined as qualified rehabilitation expenditures under Section
47 of the federal Internal Revenue Code that were incurred in
connection with a qualified historic structure.
"Qualified historic structure" means a certified historic
structure as defined under Section 47(c)(3) of the federal
Internal Revenue Code.
"Qualified rehabilitation plan" means a project that is
approved by the Department of Natural Resources and the
National Park Service as being consistent with the United
States Secretary of the Interior's Standards for
Rehabilitation.
"Qualified taxpayer" means the owner of the qualified
historic structure or any other person who qualifies for the
federal rehabilitation credit allowed by Section 47 of the
federal Internal Revenue Code with respect to that qualified
historic structure.
(b) For taxable years beginning on or after January 1,
2027, there shall be allowed a tax credit against the tax
imposed by subsections (a) and (b) of Section 201 of this Act
in an aggregate amount equal to 25% of the qualified
expenditures incurred by a qualified taxpayer in the
restoration and preservation of a qualified historic structure
located within the bounds of the Capital City Downtown Medical
District pursuant to a qualified rehabilitation plan, provided
that the total amount of such expenditures must (i) equal

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$5,000 or more and (ii) exceed the adjusted basis of the
qualified historic structure on the first day the qualified
rehabilitation plan begins. For any rehabilitation project,
regardless of duration or number of phases, the project's
compliance with items (i) and (ii) shall be determined based
on the aggregate amount of qualified expenditures for the
entire project and may include expenditures incurred under
subsection (a), this subsection, or both subsection (a) and
this subsection. If the qualified rehabilitation plan spans
multiple years, the aggregate credit for the entire project
shall be allowed in the last taxable year, except for phased
rehabilitation projects, which may receive credits upon
completion of each phase. Before obtaining the first phased
credit, the total amount of such expenditures must meet the
requirements of items (i) and (ii) and the rehabilitated
portion of the qualified historic structure must be placed in
service.
If the taxpayer is a partnership or subchapter S
corporation, the credit shall be allowed to the partners or
shareholders in accordance with the provisions of Section 251.
(c) The credit or credits may not reduce the taxpayer's
liability to less than zero. If the amount of the credit or
credits exceeds the taxpayer's liability, the excess may be
carried forward and applied against the taxpayer's liability
in the 5 taxable years following the excess credit year. The
credit or credits shall be applied to the earliest year for

10400HB0910ham003 - 63 - LRB104 04808 HLH 37059 a
which there is a tax liability. If there are credits from more
than one taxable year that are available to offset a
liability, the earlier credit shall be applied first.
(d) To obtain a tax credit pursuant to this Section, the
taxpayer must apply to the Department of Natural Resources.
The Department of Natural Resources shall determine the amount
of eligible rehabilitation costs and expenses within 45 days
of receipt of a complete application. The taxpayer must submit
a certification of costs prepared by an independent certified
public accountant that certifies (i) the project expenses,
(ii) whether those expenses are qualified expenditures, and
(iii) that the qualified expenditures exceed the adjusted
basis of the qualified historic structure on the first day the
qualified rehabilitation plan commenced. The Department of
Natural Resources is authorized, but not required, to accept
this certification of costs to determine the amount of
qualified expenditures and the amount of the credit. The
Department of Natural Resources shall provide guidance as to
the minimum standards to be followed in the preparation of the
certification. The Department of Natural Resources and the
National Park Service shall determine whether the
rehabilitation is consistent with the United States Secretary
of the Interior's Standards for Rehabilitation.
(e) Upon completion of the project and approval of the
complete application, the Department of Natural Resources
shall issue a single certificate in the amount of the eligible

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credits equal to 25% of the qualified expenditures incurred by
the taxpayer during the eligible taxable years, as defined in
subsection (b), excepting any phased credits issued prior to
the eligible taxable year under subsection (b). At the time
the certificate is issued, an issuance fee up to the maximum
amount of 2% of the amount of the credits issued by the
certificate may be collected from the applicant to administer
the provisions of this Section. If collected, this issuance
fee shall be deposited into the Historic Property
Administrative Fund, a special fund created in the State
treasury. Subject to appropriation, moneys in the Historic
Property Administrative Fund shall be provided to the
Department of Natural Resources as reimbursement for the costs
associated with administering this Section.
(f) The taxpayer must attach the certificate to the tax
return on which the credits are to be claimed.
(g) Subject to appropriation, moneys in the Historic
Property Administrative Fund shall be used, on a biennial
basis on and after June 30, 2029, to hire a qualified third
party to prepare a biennial report to assess the overall
economic impact to the State from the qualified rehabilitation
projects under this Section completed in that fiscal year and
in previous fiscal years. The overall economic impact shall
include at least: (1) the direct and indirect or induced
economic impacts of completed projects; (2) temporary,
permanent, and construction jobs created; (3) sales, income,

10400HB0910ham003 - 65 - LRB104 04808 HLH 37059 a
and property tax generation before construction, during
construction, and after completion; and (4) indirect
neighborhood impact after completion. The report shall be
submitted to the Governor and the General Assembly. The report
to the General Assembly shall be filed with the Clerk of the
House of Representatives and the Secretary of the Senate in
electronic form only, in the manner that the Clerk and the
Secretary shall direct.
(h) The Department of Natural Resources may adopt rules to
implement this Section in addition to the rules expressly
authorized in this Section.
(i) This Section is exempt from the provisions of Section
250.
(35 ILCS 5/221.6 new)
Sec. 221.6. Capital city construction jobs credit.
(a) As used in this Section:
"Capital city construction jobs credit" means:
(1) an amount equal to 50% of the incremental income
tax attributable to capital city construction employees
employed on a capital city construction jobs project not
located in an underserved area; or
(2) an amount equal to 75% of the incremental income
tax attributable to capital city construction employees
employed on a capital city construction jobs project
located in an underserved area.

10400HB0910ham003 - 66 - LRB104 04808 HLH 37059 a
"Capital city construction jobs project" means a project
that involves the construction of a structure or building or
the making of improvements of any kind to real property that
is: (i) located in a Capital City Redevelopment Zone and (ii)
built or improved in the course of completing a qualified
rehabilitation plan.
"Capital city construction jobs project" does not include
the routine operation, routine repair, or routine maintenance
of existing structures, buildings, or real property.
"Incremental income tax" means means the total amount
withheld during the taxable year from the compensation of
capital city construction jobs employees under Article 7 of
this Act.
"Qualified rehabilitation plan" means a project that is
approved by the Department of Natural Resources and the
National Park Service as being consistent with the United
States Secretary of the Interior's Standards for
Rehabilitation.
"Underserved area" means a geographic area that meets one
or more of the following conditions:
(1) the area has a poverty rate of at least 20%
according to the latest American Community Survey;
(2) 35% or more of the families with children in the
area are living below 130% of the poverty line, according
to the latest American Community Survey;
(3) at least 20% of the households in the area receive

10400HB0910ham003 - 67 - LRB104 04808 HLH 37059 a
assistance under the Supplemental Nutrition Assistance
Program (SNAP); or
(4) the area has an average unemployment rate, as
determined by the Department of Employment Security, that
is more than 120% of the national unemployment average, as
determined by the United States Department of Labor, for a
period of at least 2 consecutive calendar years preceding
the date of the application.
(b) For taxable years beginning on or after January 1,
2027, a taxpayer may receive a tax credit against the tax
imposed under subsections (a) and (b) of Section 201 of this
Act in an amount equal to 50%, or 75% if the project is located
in an underserved area, of the amount of the incremental
income tax attributable to construction wages paid to capital
city construction jobs employees employed in the course of
completing a capital city construction jobs project. The
credit allowed under this Section shall apply only to
taxpayers that make a capital investment of at least
$1,000,000 in a qualified rehabilitation plan.
(c) A taxpayer seeking a credit under this Section must
submit an application to the Department of Commerce and
Economic Opportunity describing the nature and benefit of the
capital city construction jobs project to the qualified
rehabilitation project and the Capital City Redevelopment
Zone. The Department of Commerce and Economic Opportunity may
adopt any necessary rules in order to administer the

10400HB0910ham003 - 68 - LRB104 04808 HLH 37059 a
provisions of this Section.
(d) Within 45 days after the receipt of an application,
the Department of Commerce and Economic Opportunity shall give
notice to the applicant as to whether the application has been
approved or disapproved. If the Department of Commerce and
Economic Opportunity disapproves the application, it shall
specify the reasons for this decision and allow 60 days for the
applicant to amend and resubmit its application. The
Department of Commerce and Economic Opportunity shall provide
assistance upon request of the applicant. Resubmitted
applications shall receive the Department of Commerce and
Economic Opportunity's approval or disapproval within 30 days
of resubmission. Those resubmitted applications satisfying
initial Department of Commerce and Economic Opportunity
objectives shall be approved unless reasonable circumstances
warrant disapproval.
(e) On an annual basis, the taxpayer shall furnish a
statement to the Department of Commerce and Economic
Opportunity on the programmatic and financial status of any
approved project and an audited financial statement of the
project.
(f) The Department of Commerce and Economic Opportunity
shall certify to the Department of Revenue the identity of the
taxpayers who are eligible for capital city construction jobs
credits and the amounts of capital city construction jobs
credits awarded in each taxable year.

10400HB0910ham003 - 69 - LRB104 04808 HLH 37059 a
(g) The credit or credits may not reduce the taxpayer's
liability to less than zero. If the amount of the credit or
credits exceeds the taxpayer's liability, the excess may be
carried forward and applied against the taxpayer's liability
in the 5 taxable years following the excess credit year. The
credit or credits shall be applied to the earliest year for
which there is a tax liability. If there are credits from more
than one taxable year that are available to offset a
liability, the earlier credit shall be applied first.
(h) The prevailing wage requirements set forth in the
Prevailing Wage Act apply to each project that is entitled to a
construction jobs credit under this Section.
(i) This Section is exempt from the provisions of Section
250.
Section 10-25. The Property Tax Code is amended by adding
Division 23 to Article 10 as follows:
(35 ILCS 200/Art. 10 Div. 23 heading new)
Division 23. Megaprojects
(35 ILCS 200/10-1010 new)
Sec. 10-1010. Megaproject Assessment Freeze and Payment
Law; definitions. This Division 23 may be cited as the
Megaproject Assessment Freeze and Payment Law.
As used in this Division:

10400HB0910ham003 - 70 - LRB104 04808 HLH 37059 a
"Assessment officer" means the chief county assessment
officer of the county in which the megaproject is located.
"Assessment period" means the period beginning on the
first day of the calendar year after the calendar year in which
a megaproject is placed in service and ending on the date when
the megaproject no longer qualifies as a megaproject under
this Division.
"Base year" means:
(1) the calendar year prior to the calendar year in
which the Department issues the megaproject certificate,
if the Department issues a megaproject certificate for a
project located on the property without granting
preliminary approval for the project under Section
10-1040; or
(2) the calendar year prior to the calendar year in
which the Department grants that preliminary approval, if
the Department grants preliminary approval under Section
10-1040 for a megaproject located on the property.
"Base year valuation" means the assessed value, in the
base year, of the property comprising the megaproject.
"Company" means one or more entities whose aggregate
investment in the megaproject meets the minimum investment
required under this Division. The term "company" includes a
company affiliate unless the context clearly indicates
otherwise.
"Company affiliate" means an entity that joins with or is

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an affiliate of a company and that participates in the
investment in, or financing of, a megaproject.
"Consumer Price Index" means the index published by the
Bureau of Labor Statistics of the United States Department of
Labor that measures the average change in prices of goods and
services purchased by all urban consumers, United States city
average, all items, 1982-84 = 100.
"Department" means the Department of Commerce and Economic
Opportunity.
"Eligible costs" means all costs incurred by or on behalf
of, or allocated to, a company, prior to the Department's
issuance of the megaproject certificate or during the
investment period, to create or construct a megaproject.
"Eligible costs" includes, without limitation:
(1) the purchase, site preparation, renovation,
rehabilitation, and construction of land, buildings,
structures, equipment, and furnishings used for or in the
megaproject;
(2) any goods or services for the megaproject that are
purchased and capitalized under generally accepted
accounting principles, including any organizational costs
and research and development costs incurred in Illinois;
(3) capitalized lease costs for land, buildings,
structures, and equipment valued at their present value
using the interest rate at which the company borrows funds
prevailing at the time the company entered into the lease;

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(4) infrastructure development costs;
(5) debt service and project financing costs;
(6) noncapitalized research and development costs;
(7) job training and education costs;
(8) lease and relocation costs; and
(9) remediation costs, as defined in Section 58.2 of
the Environmental Protection Act, incurred voluntarily as
a nonresponsible party pursuant to Title XVII of the
Environmental Protection Act and rules adopted under that
Title.
"Entity" means a sole proprietor, partnership, firm,
corporation, limited liability company, association, or other
business enterprise.
"Incentive agreement" means an agreement that is between a
company and a local municipality, that is for the benefit of
the entire community, and that obligates the company to make
the special payment under this Division, in addition to paying
property taxes, during the incentive period for a megaproject.
"Incentive period" means the period beginning on the first
day of the calendar year after the calendar year in which the
megaproject is placed in service and each calendar year
thereafter until the earlier of (i) the termination date or
(ii) the revocation of the megaproject certificate.
"Investment period" means the period ending 7 years after
the date on which the Department issues the megaproject
certificate, or such other longer period of time as the local

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municipality and the company may agree to, not to exceed an
initial period of 10 years.
"Local municipality" means the city, village, or
incorporated town in which the megaproject is located or, if
the megaproject is located in an unincorporated area, the
county in which the megaproject is located.
"Local review board" means a group that consists of one
representative of each of the following: (i) the local
municipality; (ii) each local school district in which the
property is located; (iii) each local park district in which
the property is located; and (iv) each other taxing district
that levies property taxes over any portion of the proposed
site of the megaproject.
"Megaproject" means a project that is expected to satisfy
the minimum investment requirements; investment period
requirements; and other requirements of this Division.
"Megaproject" includes an RREDY megaproject.
"Megaproject certificate" means a certificate issued by
the Department that authorizes an assessment freeze and
special payments as provided in this Division.
"Minimum investment" means:
(1) an investment during the investment period in the
megaproject of at least $100,000,000 but less than
$500,000,000 in eligible costs within the investment
period; or
(2) an investment during the investment period in the

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megaproject of at least $500,000,000 but less than
$1,000,000,000 in eligible costs within the investment
period; or
(3) an investment during the investment period in the
megaproject of at least $1,000,000,000 in eligible costs
within the investment period.
"Minority person" means a person who is a citizen or
lawful permanent resident of the United States and who is any
of the following:
(1) American Indian or Alaska Native (a person having
origins in any of the original peoples of North and South
America, including Central America, and who maintains
tribal affiliation or community attachment).
(2) Asian (a person having origins in any of the
original peoples of the Far East, Southeast Asia, or the
Indian subcontinent, including, but not limited to,
Cambodia, China, India, Japan, Korea, Malaysia, Pakistan,
the Philippine Islands, Thailand, and Vietnam).
(3) Black or African American (a person having origins
in any of the black racial groups of Africa).
(4) Hispanic or Latino (a person of Cuban, Mexican,
Puerto Rican, South or Central American, or other Spanish
culture or origin, regardless of race).
(5) Native Hawaiian or Other Pacific Islander (a
person having origins in any of the original peoples of
Hawaii, Guam, Samoa, or other Pacific Islands).

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"Minority-owned business" means a business that is at
least 51% owned by one or more minority persons, or that, in
the case of a corporation, has at least 51% of its stock owned
by one or more minority persons, and that, in either case, is
managed and operated on a daily basis by one or more of the
minority individuals who own the business.
"Placed in service" means that the company has commenced
its business operations at the megaproject site and has met
its minimum investment requirements under this Section.
"Project" means land, buildings, and other improvements on
the land of a megaproject or RREDY megaproject, including
water facilities, sewage treatment and disposal facilities,
and all other machinery, apparatuses, equipment, office
facilities, related infrastructure, and furnishings that are
considered necessary, suitable, or useful by a company and
comprise the development of the megaproject or RREDY
megaproject, including all of that property that is subject to
assessment under the Property Tax Code.
"Project labor agreement" means a prehire collective
bargaining agreement that covers all terms and conditions of
employment between the general contractor and all
subcontractors hired by the master developer, developer,
codevelopers, as applicable, of a megaproject. A "project
labor agreement" must include the following provisions: (1) a
provision establishing the minimum hourly wage for each class
of labor organization employee; (2) a provision establishing

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the benefits and other compensation for each class of labor
organization employee; (3) a provision requiring that no
strike or dispute will be engaged in by the labor organization
employees; (4) a provision requiring that no lockout or
dispute will be engaged in by the general contractor and all
subcontractors building the project; and (5) a provision
establishing goals for apprenticeship hours to be performed by
minority persons and women and goals for total hours to be
performed by minority persons and women, as those terms are
defined in the Business Enterprise for Minorities, Women, and
Persons with Disabilities Act. A "project labor agreement" may
include other terms and conditions as necessary.
"Railroad Rehabilitation and Economic Development for
Yards megaproject" or "RREDY megaproject" means a megaproject
that (i) is expected to satisfy the additional minimum
investment requirements, investment period requirements, and
other requirements of this Division, (ii) includes the
improvement and redevelopment of blighted or underused rail
yards, railroad tracks, train maintenance and storage
facilities, and other rail infrastructure, including the land,
air rights, or land and air rights above, and (iii) meets the
requirements of subsection (c) of Section 10-1015 of this
Division.
"Special payment" means the annual amount paid in addition
to property taxes paid during the incentive period as provided
in the incentive agreement.

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"Taxing district" has the meaning given to that term in
Section 1-150.
"Termination date" means:
(1) for a company making the minimum investment
described in paragraph (1) of the definition of "minimum
investment" in this Section, 25 years following the first
calendar year in which a megaproject is placed in service
or 30 years if the preparation of the site required
environmental remediation under any applicable State or
federal laws;
(2) for a company making the minimum investment
described in paragraph (2) of the definition of "minimum
investment" in this Section, 30 years following the first
calendar year in which a megaproject is placed in service
or 35 years if the preparation of the site required
environmental remediation under any applicable State or
federal laws; or
(3) for a company making the minimum investment
described in paragraph (3) of the definition of "minimum
investment" in this Section, 40 years following the first
calendar year in which a megaproject is placed in service
or 45 years if the preparation of the site required
environmental remediation under any applicable State or
federal laws.
"Termination date" means, for an RREDY megaproject, 40
years following the first calendar year in which a megaproject

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is placed in service.
If the incentive agreement is terminated under Section
10-1037, then the termination date is the date the agreement
is terminated.
(35 ILCS 200/10-1015 new)
Sec. 10-1015. Valuation during incentive period;
eligibility.
(a) Property that receives a megaproject certificate from
the Department is eligible for an assessment freeze, as
provided in this Division, eliminating from consideration, for
assessment purposes during the incentive period, the value
added to the property by the project and limiting the total
valuation of the property during the incentive period to the
base year valuation. If the company does not anticipate
completing the project within the investment period, then the
local municipality may approve one or more extensions of time
to complete the project. However, the local municipality may
not extend the project for a period that exceeds 5 years after
the last day of the investment period, including any extension
of the investment period agreed to by the local municipality
and the company under Section 10-1010. Unless approved as part
of the original incentive agreement, the corporate authorities
of the local municipality may approve an extension under this
subsection by resolution, a copy of which must be delivered to
the Department within 30 days after the date the resolution is

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adopted.
(b) To qualify for the assessment freeze for a
megaproject, other than an RREDY megaproject, the company
must:
(1) make the minimum investment in the megaproject
during the investment period;
(2) enter into an incentive agreement with the local
municipality as described in this Division;
(3) enter into a project labor agreement prior to the
commencement of any demolition, building construction, or
building renovation related to the megaproject; and
(4) establish the goal of awarding 20% of the total
dollar amount of contracts that are related to the
megaproject and are awarded by the company during each
calendar year to minority-owned businesses.
(c) To qualify for the assessment freeze for an RREDY
megaproject, the company must:
(1) meet the requirements for a megaproject set forth
in paragraphs (1) through (5) of subsection (b);
(2) develop and deliver capital improvements on land,
within air rights, or on land and within air rights that
meet the following additional requirements:
(A) the megaproject is located in a municipality
with a population of 2,000,000 or more;
(B) not less than 75% of the cost of land and
project improvements are infrastructure costs;

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(C) the megaproject is found, by an independent,
third-party feasibility analysis, to present a unique
opportunity for economic development and activating an
underdeveloped portion of land that could complement
existing civic assets;
(D) the project is found, by an independent,
third-party feasibility analysis within a reasonable
order of magnitude that reflects key inputs, to have
the potential to result in not less than
$40,000,000,000 in aggregate new tax revenues to all
taxing jurisdictions over not less than 40 years; and
(E) the project is found by an independent,
third-party feasibility analysis, to have the
potential to result in an increase in regional transit
ridership by not less than 10,000 average daily
boardings.
(d) For the purposes of this Division, if a single company
enters into a financing arrangement of the type described in
subsection (b) of Section 10-1050, the investment in or
financing of the property by a developer, lessor, financing
entity, or other third party in accordance with this
arrangement is considered investment by the company.
Investment by a related person to the company is considered
investment by the company.
(35 ILCS 200/10-1020 new)

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Sec. 10-1020. Incentive agreement; assessment freeze for
megaprojects; incentive period; location of the project;
criteria to qualify.
(a) To obtain the benefits provided in this Division, the
company shall apply in writing to the local municipality to
enter into an incentive agreement with the municipality, in
the form and manner required by the local municipality, and
shall certify to the facts asserted in the application.
(b) The corporate authorities of the local municipality,
prior to entering into an incentive agreement under this
Section, shall hold a public hearing to consider the
application. The amount and terms of the proposed special
payment and the duration of the incentive agreement shall be
considered at the public hearing.
(c) The local municipality may not enter into, alter, or
amend an incentive agreement under this Division unless and
until all of the following are considered and approved by a
majority of the members of a local review board, in accordance
with the weighted vote set forth below:
(1) the base year;
(2) the base year valuation, which may be subject to
adjustment based on factors memorialized in the incentive
agreement, including an annual rate adjustment equal to
the annual percentage change in the Consumer Price Index,
if negotiated;
(3) the amount of the special payment, including the

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manner in which the payment will adjust over time;
(4) the manner in which sufficient revenues will be
generated and provided, either by the megaproject or by
alternative sources, to address the extraordinary capital
needs of the local school districts that will be incurred
to meet the demands of new students who (i) reside within
housing units constructed as part of a master development
plan that includes the megaproject site and (ii) are
anticipated to attend a school under the jurisdiction of a
local school district; and
(5) the adjustment of the amount of the special
payment in accordance with changes in the Consumer Price
Index, as negotiated.
In addition, the local review board may not approve an
incentive agreement unless it finds that the agreement is
reasonably designed to prevent local school districts from
receiving less than the base-year school revenue amount,
adjusted annually by the percentage change, if any, in the
Consumer Price Index.
As duly appointed officials representing their respective
bodies, local review board members are entrusted to keep in
mind the best interests of the entire affected community area
of the project for the short and long term. Members are
expected to review the project reports and information, where
provided and applicable, on behalf of the constituents they
represent. The board may request additional documentation from

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the applicant to inform its review as the board deems
necessary to render a decision. This documentation shall
include a school impact analysis with a statement of projected
enrollment effects and, where necessary, a mitigation plan for
extraordinary capital burdens. The local review board shall
consist of one representative of each of the following: (i)
the local municipality; (ii) each local school district in
which the property is located; (iii) each local park district
in which the property is located; and (iv) each other taxing
district that levies property taxes over any portion of the
proposed site of the megaproject. Except for an RREDY
megaproject, the vote of the local review board shall be
weighted in proportion to each voting member's taxing
district's share of property taxes levied on the proposed site
of the megaproject, and each taxing district's vote shall be
weighted on a 100-point scale to reflect its proportionate
share of the applicable property taxes. All plan documents
relied upon by the municipality in its review of the
application for an incentive agreement under this Division
shall be provided to the local review board. The local review
board may make reasonable requests of the municipality for
additional documents related to the megaproject. All meetings
of the local review board shall be open to the public and
subject to the requirements of the Open Meetings Act. For an
RREDY megaproject, the local review board shall follow the
procedural requirements of a joint review board under Section

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11-74.4-5 of the Illinois Municipal Code.
(d) The company and the local municipality shall enter
into an incentive agreement requiring the special payment
described in Section 10-1025. The corporate authorities of the
local municipality shall adopt an ordinance approving the
incentive agreement.
(e) As used in this Section, "Consumer Price Index" means
the index published by the Bureau of Labor Statistics of the
United States Department of Labor that measures the average
change in prices of goods and services purchased by all urban
consumers, United States city average, all items, 1982-84 =
100.
(35 ILCS 200/10-1025 new)
Sec. 10-1025. Contents of incentive agreement.
(a) The incentive agreement under Section 10-1020 must
require the company to pay, or be responsible for the payment
of, an annual special payment to the local municipality,
beginning with the first tax year for which the assessment
freeze under this Division is applied to the megaproject. The
amount of the special payment shall be established in the
incentive agreement. It may be a fixed amount for the duration
of the incentive period or may be subject to adjustment based
on factors memorialized in the incentive agreement, including
an annual rate adjustment equal to the annual percentage
change in the Consumer Price Index, if negotiated. The amount

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of the special payment may exceed but shall be at least 10% of
the property tax levied against the megaproject property for
the year immediately preceding the base year; provided,
however, that this requirement does not apply to any project
with an investment expected to exceed $2,000,000,000.
(b) The incentive agreement shall obligate the company to
operate the megaproject at the designated project location for
a minimum of 20 years.
(b-5) The incentive agreement shall obligate the company
to enter into a labor peace agreement as provided in Section
10-1026.
(c) The incentive agreement may contain such other terms
and conditions as are mutually agreeable to the local
municipality and the company and are consistent with the
requirements of this Division, including, without limitation,
operational and job creation requirements.
(d) In addition, all incentive agreements entered into
under Section 10-1020 must include, as the first portion of
the document, a recapitulation of the remaining contents of
the document, which shall include the following:
(1) the legal name of each party to the agreement;
(2) the street address of the project and the property
subject to the agreement;
(3) the agreed minimum investment;
(4) the term of the agreement;
(5) a schedule showing the amount of the special

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payment and its calculation for each year of the
agreement;
(6) a schedule showing the amount to be distributed
annually to each taxing district, as set forth in the
incentive agreement;
(7) any other feature or aspect of the agreement which
may affect the calculation of items (5) and (6) of this
subsection;
(8) the party or parties to the agreement who are
responsible for updating the information contained in the
summary document; and
(9) a requirement that the company submit a
third-party agreed-upon procedures report verifying that
the project has been placed in service and that the
minimum investment requirements under this Division have
been met.
(35 ILCS 200/10-1026 new)
Sec. 10-1026. Labor peace agreement. Companies receiving
incentives under this Division shall have in place, at all
times during the incentive period, a labor peace agreement
with any bona fide labor organization that represents or is
attempting to represent any employees or vendors performing
work in connection with the megaproject. Companies receiving
incentives under this Division shall also require that any
vendor performing work in connection with the megaproject

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enter into a labor peace agreement with any bona fide labor
organization that represents or is attempting to represent any
employees of a subcontractor who are performing work in
connection with the megaproject. The company must attest to
the Department each year, in the form and manner required by
the Department, that it remains in compliance with this
Section. If a company fails to comply with the provisions of
this Section, then the Department shall revoke the company's
megaproject certificate, and the incentive agreement shall be
terminated.
(35 ILCS 200/10-1030 new)
Sec. 10-1030. Installment bills; distribution of special
payments.
(a) The local municipality shall prepare a bill for the
company for each installment of the special payment according
to the schedule set forth in paragraph (5) of subsection (d) of
Section 10-1025, or as modified pursuant to paragraph (7) of
subsection (d) of Section 10-1025. The treasurer of the local
municipality shall deposit 50% of the special payment
proceeds, when collected, into a locally held property tax
relief fund. Moneys in the property tax relief fund shall be
allocated as follows:
(1) 60% of the moneys shall be used for property tax
rebates for residential homeowners in taxing districts in
which the megaproject is located; and

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(2) 40% of the moneys shall be paid to the State
Treasurer for deposit into the Illinois Property Tax
Relief Fund created under Section 6z-113 of the State
Finance Act.
The local municipality shall, by ordinance or resolution,
establish eligibility standards and benefit amounts for
property tax rebates awarded under item (1).
(b) After deposits have been made into the property tax
relief fund under subsection (a), the municipality shall
distribute the remainder of the special payment to each
affected taxing district in an amount equal to the taxing
district's proportionate share of property taxes due and
payable for the megaproject site, as evidenced by the most
recent property tax bill issued for the megaproject site.
(c) Distribution to the taxing districts of the amounts
set forth in subsection (b) must be made within 60 days after
receipt by the local municipality of the special payment
amounts.
(d) Misallocations of the amounts distributed under
subsection (b) may be corrected by adjusting later
distributions, but these adjustments must be made in the next
succeeding year following identification and resolution of the
misallocation. To the extent that distributions have been made
improperly in previous years, claims for adjustment must be
made within one year of the distribution.
(e) A taxing district that receives and retains revenues

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from a special payment under this Division may, in its
discretion and in accordance with applicable law, use all or a
portion of the revenues for the purposes of financing the
issuance of revenue bonds.
(35 ILCS 200/10-1037 new)
Sec. 10-1037. Termination of incentive agreement;
automatic termination; minimum level of investment required to
remain qualified for assessment freeze.
(a) The local municipality and the company may mutually
agree to terminate the incentive agreement at any time. From
the date of termination, the megaproject is subject to
assessment on the basis of the then-current fair cash value.
(b) An incentive agreement shall be terminated if the
company fails to satisfy the minimum investment level provided
in this Division. If the incentive agreement is terminated
under this subsection, the megaproject is subject to
assessment on the basis of the then-current fair cash value
beginning in the tax year during which the termination occurs.
(c) An incentive agreement shall terminate if, at any
time, the company no longer meets the minimum investment
requirements applicable to the company under this Division,
without regard to depreciation.
(35 ILCS 200/10-1038 new)
Sec. 10-1038. Megaproject administration. The

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administration of a megaproject shall be under the
jurisdiction of the local municipality that approved the
incentive agreement by ordinance. Each local municipality that
approves an incentive agreement by ordinance shall, by
ordinance, designate a Megaproject Administrator for the
megaproject within its jurisdiction. A Megaproject
Administrator must be an officer or employee of the local
municipality. The Megaproject Administrator shall be the
liaison between the local municipality, the Department, and
the Department of Revenue. The Megaproject Administrator shall
be responsible for ensuring the company is complying with the
terms of the incentive agreement. The Megaproject
Administrator shall notify the chief county assessment officer
once the project is placed in service and is eligible for the
property tax assessment freeze pursuant to Section 10-1015.
(35 ILCS 200/10-1040 new)
Sec. 10-1040. Megaproject applications; certification as a
megaproject and revocation of certification.
(a) The Department shall receive applications for
megaproject certificates under this Division. The Department
shall promptly notify the assessment officer when the
Department receives an application under this Section.
(b) An applicant for a megaproject certificate under this
Division must provide evidence to the Department of a fully
executed incentive agreement between the company and the local

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municipality, as described in this Division, and the
Department shall verify that the incentive agreement meets the
requirements of Section 10-1025.
(c) An applicant for a megaproject certificate under this
Division must provide evidence to the Department of a fully
executed project labor agreement prior to the commencement of
any demolition, building construction, or building renovation
at the project. The Department may approve an application
prior to the execution of the project labor agreement, but the
applicant shall provide evidence of a fully executed project
labor agreement prior to any demolition, building
construction, or building renovation at the project.
The project labor agreement must include the following
provisions:
(1) a provision establishing the minimum hourly wage
for each class of labor organization employee;
(2) a provision establishing the benefits and other
compensation for each class of labor organization
employee;
(3) a provision requiring that no strike or dispute
will be engaged in by the labor organization employees;
(4) a provision requiring that no lockout or dispute
will be engaged in by the general contractor or any
subcontractor building the project;
(5) a provision establishing goals for apprenticeship
hours to be performed by minority persons and women and

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goals for total hours to be performed by minority persons
and women, as those terms are defined in the Business
Enterprise for Minorities, Women, and Persons with
Disabilities Act; and
(6) other provisions as necessary.
(d) An applicant for a megaproject certificate under this
Division must provide evidence to the Department that the
company has established the goal of awarding 20% of the total
dollar amount of contracts awarded during each calendar year
by the company, that are related to the project, to
minority-owned businesses.
(e) The Department shall also consider the economic
benefits the project brings to underserved communities.
(f) Except for an RREDY megaproject that meets not less
than the minimum affordable housing requirements of the
applicable local municipality, no project that contains any
residential dwelling units may be certified as a megaproject
under this Division.
(g) The Department shall approve an application for a
megaproject certificate if the Department finds that the
project meets the requirements of this Division.
(h) Upon approval of the application, the Department shall
issue a megaproject certificate to the applicant and transmit
a copy to the assessment officer and the Department of
Revenue. The certificate shall identify the property on which
the megaproject is located and state that the property is

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eligible for the property tax assessment freeze pursuant to
Section 10-1015 once the project is placed in service.
(i) On May 1 of each calendar year following issuance of
the megaproject certificate, until the minimum investment
requirements have been met and the megaproject has been placed
in service, the company shall deliver a report to the
Department and Megaproject Administrator on the status of
construction or creation of the megaproject and the amount of
minimum investment made in the megaproject during the
preceding calendar year. If a project for which a certificate
has been issued has not met the minimum investment
requirements of this Division within the investment period,
the Department shall revoke the certificate by written notice
to the taxpayer of record and transmit a copy of the revocation
to the assessment officer.
(j) If the local municipality notifies the Department that
the incentive agreement between the company and the local
municipality has been terminated, the Department shall revoke
the certificate by written notice to the taxpayer of record
and transmit a copy of the revocation to the assessment
officer.
(k) Notwithstanding any other provision of this Section,
beginning 7 years after the effective date of this amendatory
Act of the 104th General Assembly, the Department shall not
approve any application for a megaproject.

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(35 ILCS 200/10-1045 new)
Sec. 10-1045. Computation of valuation.
(a) Upon receipt of the megaproject certificate from the
Department, the assessment officer shall set the assessment of
the megaproject property based upon the terms of the incentive
agreement and shall make a notation on each statement of
assessment during the assessment period that the valuation of
the project is based upon the issuance of a megaproject
certificate.
(b) Upon revocation of a megaproject certificate, the
assessment officer shall compute the assessed valuation of the
project on the basis of the then-current fair cash value of the
property.
(35 ILCS 200/10-1050 new)
Sec. 10-1050. Transfers of interest in a megaproject;
sale-leaseback arrangement; requirements.
(a) Subject to the terms of the incentive agreement
between the company and the local municipality, ownership of
or any interest in the megaproject and any and all related
megaproject property, including, without limitation, transfers
of indirect beneficial interests and equity interests in a
company owning a megaproject, shall not affect the assessment
freeze or the validity of the megaproject certificate issued
under this Division. Notwithstanding the provisions of this
subsection, the incentive agreement shall be a covenant

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running with the land.
(b) A company may enter into lending, financing, security,
leasing, or similar arrangements, or a succession of such
arrangements, with a financing entity concerning all or part
of a project, including, without limitation, a sale-leaseback
arrangement, equipment lease, build-to-suit lease, synthetic
lease, nordic lease, defeased tax benefit, or transfer lease,
an assignment, sublease, or similar arrangement, or succession
of those arrangements, with one or more financing entities
concerning all or part of a project, regardless of the
identity of the income tax or fee owner of the megaproject.
Neither the original transfer to the financing entity nor the
later transfer from the financing entity back to the company,
under terms in the sale-leaseback agreement, shall affect the
assessment freeze or the validity of the megaproject
certificate issued under this Division, regardless of whether
the income tax basis is changed for income tax purposes.
(c) The Department must receive notice of all transfers
undertaken with respect to the project to effect a financing.
Notice shall be made in writing within 60 days after the
transfer, shall identify each transferee, and shall contain
other information required by the Department with the
appropriate returns. Failure to meet this notice requirement
does not adversely affect the assessment freeze.
(35 ILCS 200/10-1055 new)

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Sec. 10-1055. Minimum investment by company affiliates. To
be eligible for the benefits of this Division, a company must
invest the minimum investment. Investments by company
affiliates during the investment period for the project may be
applied toward the minimum investment under this Division
regardless of whether the company affiliate was part of the
project. To qualify for the assessment freeze, the minimum
investment must be made in connection with the megaproject.
(35 ILCS 200/10-1065 new)
Sec. 10-1065. Abatements. Any taxing district, upon a
majority vote of its governing authority, may, after the
determination of the assessed valuation as set forth in this
Division, order the clerk of the appropriate municipality or
county to abate any portion of real property taxes otherwise
levied or extended by the taxing district on a megaproject.
(35 ILCS 200/10-1067 new)
Sec. 10-1067. Building materials exemption.
Notwithstanding any other provision of law, sales of building
materials that will be incorporated into a megaproject and
that are purchased during the incentive period are eligible
for the same building materials exemption available to High
Impact Businesses under Section 5l of the Retailers'
Occupation Tax Act, which includes an exemption from the 6.25%
State rate of tax and any applicable local taxes. The

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Department of Revenue shall issue a Building Materials
Exemption Certificate, in the form and manner described in
Section 5l of the Retailers' Occupation Tax Act, to each
construction contractor or other entity identified by the
company as being eligible for the building materials exemption
under this Section.
(35 ILCS 200/10-1070 new)
Sec. 10-1070. Filing of returns, contracts, and other
information; due date of payments and returns.
(a) The company and the local municipality shall file
notices, reports, and other information as required by the
Department.
(b) Special payments are due at the same time as property
tax payments and property tax returns are due for the
megaproject property.
(c) Failure to make a timely special payment results in
the assessment of penalties as if the payment were a
delinquent property tax payment or return.
(d) Within 30 days after the date of execution of an
incentive agreement, a copy of the incentive agreement must be
filed with the chief county assessment officer and the county
auditor for the county in which the megaproject is located.
(35 ILCS 200/10-1080 new)
Sec. 10-1080. Rules. The Department may adopt rules as

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necessary to carry out the purpose of this Division.
(35 ILCS 200/10-1085 new)
Sec. 10-1085. Prohibition on multiple credits, exemptions,
and freezes. An applicant for a megaproject certificate who
qualifies for an assessment freeze under this Section is not
entitled to any other property tax credits, exemptions,
assessment freezes, or other preferential assessment relating
to the megaproject. The provisions of this Section do not
prohibit an applicant from receiving the incentive under
Section 10-1067.
(35 ILCS 200/10-1087 new)
Sec. 10-1087. Impact analysis. A local municipality that
has entered into an incentive agreement with a company shall
prepare and publish on its website a written impact analysis
concerning the effects of that agreement within 5 years after
the effective date of the incentive agreement and every 5
years thereafter for as long as the incentive agreement
remains in effect. A written copy of each impact analysis
shall be filed with the General Assembly as provided under
Section 3.1 of the General Assembly Organization Act.
(35 ILCS 200/10-1090 new)
Sec. 10-1090. Data centers; prohibited.
(a) As used in this Section, "data center" has the meaning

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given in subsection (c) of Section 605-1025 of the Department
of Commerce and Economic Opportunity Law of the Civil
Administrative Code of Illinois.
(b) Notwithstanding any other provision of law, the
Department shall not approve any megaproject certificate
application that includes as part of the application the
development of any data center.
(35 ILCS 200/10-1091 new)
Sec. 10-1091. Ethics.
(a) No State or local elected official may knowingly
accept from an employee or agent of a company a free or
discounted ticket to a professional sporting event held at a
sports stadium that is constructed as part of a megaproject,
unless the free or discounted ticket is given or sold as part
of a promotion generally available to the public on the same
terms as generally available to the public.
(b) No person who participates personally and
substantially in the negotiation of a megaproject agreement on
behalf of a local municipality or taxing district, including,
but not limited to, any officer, agent, or employee of the
local municipality or taxing district or any lobbyist or
outside attorney employed by the local municipality or taxing
district, may, within a period of one year after the effective
date of the agreement, knowingly accept employment or receive
compensation or fees from a company that is a party to the

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agreement.
(35 ILCS 200/10-1095 new)
Sec. 10-1095. Tax Increment Financing districts. Land,
including improvements thereon, designated as a megaproject
site under this Division 23 that is located within a
redevelopment project area designated under Division 74.4 of
Article 11 of the Illinois Municipal Code is eligible may not
receive both the benefits afforded property under this
Division and the benefits afforded property under Division
74.4 of Article 11 of the Illinois Municipal Code.
(35 ILCS 200/10-1098 new)
Sec. 10-1098. Invalidity. If all or any part of this
Division is determined to be unconstitutional or otherwise
unenforceable by a court of competent jurisdiction, a company
has 180 days from the date of the determination to transfer the
megaproject's title to an authorized economic development
authority, which may qualify for property tax assessment under
this Division or which may be exempt from property taxes.
Section 10-30. The Statewide Innovation Development and
Economy Act is amended by changing Sections 5-5, 5-10, 5-15,
5-20, 5-30, 5-35, 5-45, 5-50, 5-55, 5-70, and 5-75 as follows:
(50 ILCS 475/5-5)

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Sec. 5-5. Purpose; findings.
(a) The General Assembly finds and declares that the
purpose of this Act is to promote, stimulate, and develop the
general and economic welfare of the State of Illinois and its
communities and to assist in the development and redevelopment
of major tourism, entertainment, retail, and related projects
within eligible areas of the State, thereby creating new jobs,
stimulating significant capital investment, and promoting the
general welfare of the citizens of this State, by authorizing
municipalities and counties to issue sales tax and revenue
(STAR) bonds for the financing of STAR bond projects, as
defined in Section 5-10, and to otherwise exercise the powers
and authorities granted to municipalities.
(b) The General Assembly further finds and declares that:
(1) It is the policy of the State, in the interest of
promoting the health, safety, morals, and general welfare
of all the people of the State, to provide incentives to
create new job opportunities, and to promote major
tourism, entertainment, retail, and related projects
within the State.
(2) It is in the public interest to limit the portion
of the aggregate proceeds of STAR bonds issued that are
derived from the State sales tax increment pledged to pay
STAR bonds in any STAR bond district to not more than 50%
of the total development costs for a STAR bond project in
the STAR bond district as set forth in subsection (g) of

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Section 5-45.
(3) As a result of the costs of land assemblage,
financing, and infrastructure and other project costs, the
private sector, without the assistance contemplated in
this Act, is unable to develop major tourism,
entertainment, retail, and related projects in some parts
of the State.
(4) The type of projects for which this Act is
intended must be of a certain size and scope and must be
developed in a cohesive and comprehensive manner.
(5) The eligible tracts of land are more likely to
remain underused and undeveloped or to be developed in a
piecemeal manner resulting in inefficient and poorly
planned developments that do not maximize job creation,
job retention, and tax revenue generation within the
State.
(6) There are multiple eligible areas in the State
that could benefit from this Act.
(7) Investment in major tourism, entertainment,
retail, and related development within the State would
stimulate economic activity in the State, including the
creation and maintenance of jobs, the creation of new and
lasting infrastructure and other improvements, and the
attraction and retention of interstate tourists and
entertainment events that generate significant economic
activity.

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(8) The continual encouragement, development, growth,
and expansion of major tourism, entertainment, retail, and
related projects within the State requires a cooperative
and continuous partnership between government and the
private sector.
(9) The State has a responsibility to help create a
favorable climate for new and improved job opportunities
for its citizens and to increase the tax base of the State
and its political subdivisions by encouraging development
of major retail and entertainment spaces within the State
by the private sector.
(10) The provision of additional incentives by the
State and its political subdivisions will relieve
conditions of unemployment, maintain existing levels of
employment, create new job opportunities, retain jobs
within the State, increase commerce within the State, and
increase the tax base of the State and its political
subdivisions.
(11) The powers conferred by this Act promote and
protect the health, safety, morals, and welfare of the
State and are for a public purpose and public use for which
public money and resources may be expended.
(12) The necessity in the public interest for the
provisions of this Act is hereby declared as a matter of
legislative determination.
(Source: P.A. 104-453, eff. 12-12-25.)

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(50 ILCS 475/5-10)
Sec. 5-10. Definitions. In this Act:
"Base year" means the calendar year immediately before the
calendar year in which the Office of the Governor approves the
first STAR bond project within the STAR bond district.
"Commence work" means the manifest commencement of actual
operations on the development site, such as erecting a
building, site mobilization, general on-site and off-site
grading and utility installations, commencing design and
construction documentation, ordering lead-time materials,
excavating the ground to lay a foundation or a basement, or
work of like description that a reasonable person would
recognize as being done with the intention and purpose to
continue work until the project is completed.
"Corporate authority" or "corporate authorities" means the
county board of a county; the mayor and alderpersons or
similar body when the reference is to cities; the president
and trustees or similar body when the reference is to villages
or incorporated towns; and the council when the reference is
to municipalities under the commission form of government.
"De minimis amount" means an amount less than 15% of the
land area within a STAR bond district.
"Department" means the Department of Commerce and Economic
Opportunity.
"Developer" means any individual, corporation, trust,

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estate, partnership, limited liability partnership, limited
liability company, or other entity. "Developer" does not
include a not-for-profit entity, political subdivision, or
other agency or instrumentality of the State.
"Development user" means an owner, operator, licensee,
codeveloper, subdeveloper, or tenant that: (i) operates a
business within a STAR bond district that is a retail store,
hotel, or entertainment venue; (ii) does not have another
Illinois location within a 15-mile 30-mile radius at the time
of opening or, for a NOVA district or a NOVA urban district,
within a 10-mile radius; and (iii) makes an initial capital
investment, including project costs and other direct costs, of
not less than $30,000,000 for the business or, for a NOVA urban
district, makes in aggregate with other development users
capital investments, including project costs and other direct
costs, of not less than $60,000,000.
"Director" means the Director of Commerce and Economic
Opportunity.
"Economic development region" means the counties
encompassed within any one of the 10 economic development
regions recognized by the Department on the effective date of
this Act.
"Eligible area" means, in respect of any STAR bond
district other than a NOVA urban district, contiguous parcels
of real property that meet all of the following: (i) the
property is directly and substantially benefited by the

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proposed STAR bond district plan; (ii) at least 50% of the
total land area of the real property is located within an
underserved area, as defined by the Department at the time the
STAR bond district plan is submitted, or, in the alternative,
all of the total land area of the property is located within
both a municipality with not less than 70,000 residents and
that municipality is located within a county with not less
than 3,000,000 residents; (iii) the property is located in an
area with not less than 10,000 residents within a 5-mile
radius of the proposed district; (iv) the property is located
15 miles or less from either a State highway or federal
interstate highway. "Eligible area" means, in respect of a
NOVA urban district, contiguous parcels of real property,
including land, air rights, or land and air rights, that meet
all of the following: (i) the property is directly and
substantially benefited by the proposed STAR bond district
plan; (ii) the property includes one or more parcel boundaries
located within 2 miles or less from existing public assembly,
convention, and other civic and cultural facilities and
attractions directly and substantially benefited by the
proposed STAR bond district plan; (iii) the property is
located in an area with not less than 10,000 residents within a
2-mile radius of the proposed district; and (iv) the property
is located one-quarter mile or less from a commuter rail
station and either a State highway or federal interstate
highway. ; and (v) the

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For an area to be an eligible area, is found by the
governing body of the political subdivision must find that the
area meets to meet the following requirements:
(1) the use, condition, and character of the buildings
in the area, if any, are not consistent with the purposes
set forth in Section 5-5;
(2) a STAR bond district within the area is expected
to create or retain job opportunities within the political
subdivision;
(3) a STAR bond district within the area will serve to
further the development of adjacent areas;
(4) without the availability of STAR bonds, the
projects described in the STAR bond district plan would
not be feasible in the area;
(5) a STAR bond district will strengthen the
commercial sector of the political subdivision;
(6) a STAR bond district will enhance the tax base of
the political subdivision; and
(7) the formation of a STAR bond district is in the
best interest of the political subdivision.
The findings described in paragraphs (1) through (7) are
subject to the review process provided in subsections (e) and
(f) of Section 5-20.
For the purposes of this definition, the area may be
bisected by streets, highways, roads, alleys, railways, bike
paths, streams, rivers, and other waterways, and other public

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land and facilities and still be deemed contiguous.
"Entertainment user" means an owner, operator, licensee,
developer, codeveloper, subdeveloper, or tenant that operates
a business within a STAR bond district whose primary purpose
is providing entertainment attractions, rides, or other
activities oriented toward the entertainment and amusement of
patrons, occupies not less than 50 acres of land within the
STAR bond district, and makes an initial capital investment,
including project costs and other direct and indirect costs,
of not less than $150,000,000 for that venue. An entertainment
user may include restaurants, bars, hotels, retail
establishments, and other commercial, recreational, or
hospitality uses that are ancillary to or supportive of the
entertainment attractions and activities of the entertainment
user. The acreage and capital investment requirements set
forth in this Act apply to the entertainment user as a whole
and not to individual businesses, tenants, or users within the
designated area. Any businesses, tenants, or users operating
within an entertainment user designated area shall be
considered part of the entertainment user for purposes of this
Act. An entertainment user shall be considered as one
development user for purposes of any limitation related to the
number of development users in the definition of "State sales
tax increment" under this Act.
"Entertainment venue" means a business that has a primary
use of providing a venue for entertainment attractions,

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destination-oriented retail facilities, corporate brand
development and entertainment-based media, rides, or other
activities oriented toward the entertainment and amusement of
its patrons, including, but not limited to, a professional
sports stadium or arena.
"Feasibility study" means the feasibility study described
in subsection (b) of Section 5-30.
"Hotel" has the same meaning given to that term in Section
2 of the Hotel Operators' Occupation Tax Act.
"Infrastructure" means the public improvements and private
improvements that serve the public purposes set forth in
Section 5-5 of this Act and that benefit the STAR bond district
or any STAR bond projects, including, but not limited to,
streets, drives and driveways, traffic and directional signs
and signals, parking lots and parking facilities,
interchanges, highways, sidewalks, bridges, underpasses and
overpasses, bike and walking trails, landscaping and site
features, sanitary and storm sewers, and lift stations,
drainage conduits, channels, levees, canals, storm water
detention and retention facilities, utilities and utility
connections, utility distribution systems, railway and rail
yard improvements, transit stations and related facilities,
transit vehicles and mobility systems, digital media and
signage, substructure and foundations, structural slabs and
transfer structures, district energy facilities, low voltage
systems, mobilization and site preparation, earthwork and

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earth retention systems, soil removal and remediation,
building enclosure systems, site improvements that serve as an
engineered barrier addressing ground level or below ground
level environmental contamination and remediation, vertical
circulation, water mains and extensions, and street and
parking lot lighting and connections.
"Local hotel tax" means any taxes received by a
municipality, county, or other local government entity arising
from transactions by all persons engaged in the business of
renting, leasing, or letting rooms in a hotel, as defined in
the Hotel Operators' Occupation Tax Act, within a STAR bond
district, imposed pursuant to Section 8-3-14 of the Illinois
Municipal Code or Section 5-1030 of the Counties Code.
"Local sales taxes" means any locally imposed taxes
received by a municipality, county, or other local
governmental entity arising from sales by retailers and
servicemen within a STAR bond district. "Local sales taxes"
includes business district sales taxes, taxes imposed under
Section 5-50, and that portion of the net revenue allocated
from the Local Government Tax Fund and the County and Mass
Transit District Fund to the municipality, county, or other
governmental entity under the Retailers' Occupation Tax Act,
the Use Tax Act, the Service Use Tax Act, and the Service
Occupation Tax Act from transactions at places of business
located in a STAR bond district. "Local sales taxes" does not
include (i) any taxes authorized under the Local Mass Transit

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District Act or the Metro-East Park and Recreation District
Act for so long as the applicable taxing district does not
impose a tax on real property, (ii) any county school facility
and resources occupation taxes imposed under Section 5-1006.7
of the Counties Code, (iii) any taxes authorized under the
Flood Prevention District Act, (iv) any taxes authorized under
the Special County Occupation Tax For Public Safety, Public
Facilities, Mental Health, Substance Abuse, or Transportation
Law, (v) any taxes authorized under the Regional
Transportation Authority Act, (vi) any taxes authorized under
the County Motor Fuel Tax Law, or (vii) any taxes authorized
under the Municipal Motor Fuel Tax Law, or (viii) any locally
administered taxes committed to other uses by election of
voters or pledged to any bond repayment, other than STAR
bonds, prior to the approval of the STAR bond project.
"Local sales tax increment" means:
(1) with respect to local sales taxes administered by
a municipality, county, or other unit of local government,
that portion of the local sales tax that is in excess of
the aggregate local sales tax in the district for the same
month in the base year, as determined by the respective
municipality, county, or other unit of local government;
the Department of Revenue shall allocate the local sales
tax increment only if the local sales tax is administered
by the Department; and
(2) with respect to local sales taxes administered by

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the Department of Revenue:
(A) except with respect to the 0.25% county
portion of the 6.25% State rate, all the local sales
tax paid by taxpayers in the district that is in excess
of the aggregate local sales tax paid by taxpayers in
the district for the same month in the base year, as
determined by the Department of Revenue; and
(B) with respect to the 0.25% county portion of
the 6.25% State rate, in the case of a STAR bond
district that is partially or wholly within a
municipality, that portion of the 0.25% county portion
of the 6.25% rate paid by taxpayers in the district for
sales made within the corporate limits of the
municipality that is in excess of the aggregate local
sales tax paid by taxpayers in the district for sales
made within the corporate limits of the municipality
for the same month in the base year, as determined by
the Department of Revenue, but only if the corporate
authorities of the county adopt an ordinance, and file
a copy of the ordinance with the Department of Revenue
within the same time frames as required for STAR bond
occupation taxes under Section 5-50, that designates
the taxes as part of the local sales tax increment
under this Act; and .
(3) with respect to any local hotel tax that is
administered and collected directly by a political

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subdivision, if approved by the political subdivision,
that portion of the local hotel tax revenues that is in
excess of the amount of such tax revenues generated within
the STAR bond district that are in excess of the aggregate
hotel tax revenues generated within the district for the
same month in the base year, as determined by the
political subdivision.
"Market study" means a study to determine the ability of
the proposed STAR bond project to gain market share locally
and regionally and to remain profitable after the term of
repayment of STAR bonds.
"Master developer" means a developer cooperating with a
political subdivision to plan, develop, and implement a STAR
bond project plan for a STAR bond district. Subject to the
limitations of Section 5-40, the master developer may work
with and transfer certain development rights to other
developers for the purpose of implementing STAR bond project
plans and achieving the purposes of this Act. A master
developer for a STAR bond district shall be appointed by a
political subdivision in the resolution establishing the STAR
bond district or, in the case of a NOVA urban district, by the
State or the political subdivision, and the master developer
or its affiliate must, at the time of appointment, own or have
control of, through purchase agreements, option contracts, or
other means, not less than 50% of the acreage within the STAR
bond district. "Master developer" also means any successor

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developer who has assumed the role and responsibilities of the
original master developer through the execution of an amended
master development agreement and has been approved as the
master developer through resolution by the applicable
political subdivision.
"Master development agreement" means an agreement between
the master developer (or any approved successor developers)
and the political subdivision or, in the case of a NOVA urban
district, the State, to govern a STAR bond district and any
STAR bond projects.
"Municipality" means the city, village, or incorporated
town in which a proposed STAR bond district is located.
"New Opportunities for Vacation and Adventure District" or
"NOVA district" means a STAR bond district that encompasses a
minimum of 300 500 contiguous acres and, during the STAR bond
district plan approval process, demonstrates a reasonable
expectation of (1) producing a capital investment of at least
$500,000,000, (2) generating not less than $300,000,000 in
average annual gross sales over the life of the district, (3)
attracting at least 600,000 average annual 1,000,000 visitors
over the life of the district annually, and (4) creating a
minimum of 1,500 average annual jobs over the life of the
district.
"New Opportunities for Vacation and Adventure Urban
District" or "NOVA urban district" means a STAR bond district
that encompasses a minimum of 20 contiguous acres of land or

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air rights and, during the STAR bond district plan approval
process, demonstrates a reasonable expectation of (1)
producing an initial capital investment of at least
$1,000,000,000, of which 75% shall be infrastructure project
costs, (2) generating not less than $450,000,000 in average
annual gross sales over the life of the district, (3)
attracting at least 2,000,000 average annual visitors over the
life of the district, and (4) creating a minimum of 3,000
average annual jobs over the life of the district.
"Pledged STAR revenues" means those sales tax revenues and
other sources of funds that are pledged to pay debt service on
STAR bonds or to pay project costs under Section 5-45.
Notwithstanding any provision of law to the contrary, any
State sales tax increment or local sales tax increment from a
retail entity initiating operations in a STAR bond district
while terminating operations at another Illinois location
within 25 miles of the STAR bond district or, for a NOVA urban
district, within 2 miles of the STAR bond district shall not
constitute pledged STAR revenues or be available to pay
principal and interest on STAR bonds. For purposes of this
definition, "terminating operations" means a closing of a
retail operation that is directly related to the opening of
the same operation or like retail entity owned or operated by
more than 50% of the original ownership in a STAR bond district
within one year before or after initiating operations in the
STAR bond district, but it does not mean closing an operation

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for reasons beyond the control of the retail entity, as
documented by the retail entity, subject to a reasonable
finding by the municipality (or county if such retail
operation is not located within a municipality) in which the
terminated operations were located that the closed location
contained inadequate space, had become economically obsolete,
or was no longer a viable location for the retailer or
serviceperson.
"Political subdivision" means a municipality or county
that undertakes to establish a STAR bond district under the
provisions of this Act.
"Professional sports" means any of the following sports at
the major league level: baseball, basketball, football, or ice
hockey.
"Project costs" means the total of all costs incurred or
estimated to be incurred on or after the date of establishment
of a STAR bond district that are reasonable or necessary to
implement a STAR bond district plan or any STAR bond project
plans, or both, including costs incurred for public
improvements and private improvements that serve the public
purposes set forth in Section 5-5 of this Act. "Project costs"
includes, without limitation:
(1) costs of studies, surveys, development of plans
and specifications, formation, implementation, and
administration of a STAR bond district, STAR bond district
plan, any STAR bond projects, or any STAR bond project

10400HB0910ham003 - 117 - LRB104 04808 HLH 37059 a
plans, including, but not limited to, staff and
professional service costs for architectural, engineering,
legal, financial, planning, or other services; however, no
charges for professional services may be based on a
percentage of the tax increment collected, and no
contracts for professional services, excluding
architectural and engineering services, may be entered
into if the terms of the contract extend beyond a period of
3 years;
(2) property assembly costs, including, but not
limited to, costs related to:
(A) the acquisition of land and other real
property or rights or interests in the land or other
real property located within the boundaries of a STAR
bond district;
(B) the demolition of buildings, site preparation,
and site improvements that serve as an engineered
barrier addressing ground level or below ground
environmental contamination, including, but not
limited to, parking lots and other concrete or asphalt
barriers; and
(C) the clearing and grading of land and the
importing of additional soil and fill materials or the
removal of soil and fill materials from the site;
(3) subject to paragraph (6), the costs of buildings
and other vertical improvements that are located within

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the boundaries of a STAR bond district and are owned by a
political subdivision or other public entity, including
without limitation police and fire stations, educational
facilities, and public restrooms and rest areas;
(4) costs of buildings and other vertical improvements
that are located within: (i) the boundaries of a STAR bond
district and are owned by a development user, except that
only 4 development users, other than a hotel or
entertainment venue, in a STAR bond district and one hotel
are eligible to include the cost of those vertical
improvements as project costs, or (ii) the boundaries of a
NOVA district;
(5) costs of the following vertical improvements that
are located within (i) the boundaries of a STAR bond
district and owned by an entertainment venue, except that
only one entertainment venue in a STAR bond district is
eligible to include the cost of those vertical
improvements as project costs, or (ii) a NOVA district:
(A) buildings;
(B) rides and attractions, including, but not
limited to, carousels, slides, roller coasters,
displays, models, towers, works of art, and similar
theme and amusement park improvements; and
(C) other vertical improvements;
(6) costs of the design and construction of
infrastructure and public works located within the

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boundaries of a STAR bond district that are reasonable or
necessary to implement a STAR bond district plan or any
STAR bond project plans, or both, except that "project
costs" does not include the cost of constructing a new
municipal public building principally used to provide
offices, storage space, or conference facilities or
vehicle storage, maintenance, or repair for
administrative, public safety, or public works personnel
and that is not intended to replace an existing public
building unless the political subdivision makes a
reasonable determination in a STAR bond district plan or
any STAR bond project plans, supported by information that
provides the basis for that determination, that the new
municipal building is required to meet an increase in the
need for public safety purposes anticipated to result from
the implementation of the STAR bond district plan or any
STAR bond project plans;
(7) costs of the design and construction of the
following improvements located outside the boundaries of a
STAR bond district but within a 2-mile radius of the
boundaries of a STAR bond district if the costs are
essential to further the purpose and development of a STAR
bond district plan and consist of one or more of the
following: and either (i) part of and connected to sewer,
water, or utility service lines that physically connect to
the STAR bond district, or (ii) significant improvements

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for adjacent off-site highways, streets, roadways, and
interchanges that are approved by the Department of
Transportation, or (iii) transit facilities and
improvements undertaken with the applicable transit
agency. No other cost of infrastructure and public works
improvements located outside the boundaries of a STAR bond
district may be deemed project costs;
(8) costs of job training and retraining projects for
current and future employees of development users,
including programs implemented by businesses located
within a STAR bond district;
(9) financing costs, including, but not limited to,
all necessary and incidental expenses related to the
issuance of obligations and the payment of interest on any
obligations issued under this Act, including interest
accruing during the estimated period of construction of
any improvements in a STAR bond district or any STAR bond
projects for which such obligations are issued and for not
exceeding 36 months thereafter and including reasonable
reserves related thereto;
(10) interest costs incurred by a developer for
project costs related to the acquisition, formation,
implementation, development, construction, and
administration of a STAR bond district, STAR bond district
plan, STAR bond projects, or any STAR bond project plans
if:

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(A) payment of the costs in any one year may not
exceed 30% of the annual interest costs incurred by
the developer with regard to the STAR bond district or
any STAR bond projects during that year; and
(B) the total of the interest payments paid under
this Act may not exceed 30% of the total cost paid or
incurred by the developer for a STAR bond district or
STAR bond projects, plus project costs, excluding any
property assembly costs incurred by a political
subdivision under this Act;
(11) to the extent the political subdivision by
written agreement accepts and approves the same, all or a
portion of a taxing district's capital costs resulting
from a STAR bond district or STAR bond projects
necessarily incurred or to be incurred within a taxing
district in furtherance of the objectives of a STAR bond
district plan or STAR bond project plans;
(12) costs of common areas located within the
boundaries of a STAR bond district;
(13) costs of landscaping and plantings, retaining
walls and fences, artificial lakes and ponds, shelters,
benches, lighting, and similar amenities located within
the boundaries of a STAR bond district;
(14) costs of mounted building signs, site monuments,
and pylon signs located within the boundaries of a STAR
bond district; or

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(15) if included in the STAR bond district plan and
approved in writing by the Director, salaries or a portion
of salaries for local government employees to the extent
the same are directly attributable to the work of those
employees on the establishment and management of a STAR
bond district or any STAR bond project.
Except as specified in items (1) through (15) of this
definition, "project costs" does not include:
(A) the cost of construction of buildings that are
owned by a municipality or county and leased to a
development user for uses other than as a retail store,
hotel, or entertainment venue;
(B) moving expenses for employees of the businesses
locating within the STAR bond district;
(C) property taxes for property located in the STAR
bond district;
(D) lobbying costs; and
(E) general overhead or administrative costs of the
political subdivision that would still have been incurred
by the political subdivision if the political subdivision
had not established a STAR bond district; and .
(F) the cost of construction of a professional sports
stadium building.
"Project development agreement" means any one or more
agreements, including any amendments to that agreement or
those agreements, between a master developer and any

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codeveloper or subdeveloper in connection with a STAR bond
project, which project development agreement may include the
political subdivision as a party.
"Project labor agreement" means a prehire collective
bargaining agreement that covers all terms and conditions of
employment between the general contractor and all
subcontractors hired by the master developer, developer,
codeveloper, or subdeveloper, as applicable, of a STAR bond
project. A "project labor agreement" must include the
following provisions: (1) a provision establishing the minimum
hourly wage for each class of labor organization employee; (2)
a provision establishing the benefits and other compensation
for each class of labor organization employee; (3) a provision
requiring that no strike or dispute will be engaged in by the
labor organization employees; (4) a provision requiring that
no lockout or dispute will be engaged in by the general
contractor and all subcontractors building the project; and
(5) a provision establishing goals for apprenticeship hours to
be performed by minority persons and women and goals for total
hours to be performed by minority persons and women, as those
terms are defined in the Business Enterprise for Minorities,
Women, and Persons with Disabilities Act. A "project labor
agreement" may include other terms and conditions as
necessary.
"Projected market area" means any area within the State in
which a STAR bond district or STAR bond project is projected to

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have a significant fiscal or market impact as determined by
the Director.
"Resolution" means a resolution, order, ordinance, or
other appropriate form of legislative action of a political
subdivision or other applicable public entity approved by a
vote of a majority of a quorum at a meeting of the governing
body of the political subdivision or applicable public entity.
"STAR bond" means a sales tax and revenue bond, note, or
other obligation payable from pledged STAR revenues and issued
by a political subdivision, the proceeds of which shall be
used only to pay project costs as defined in this Act.
"STAR bond district" means the specific area that is
declared to be an eligible area by the political subdivision,
that has received approval by the State, and in which the
political subdivision may develop one or more STAR bond
projects.
"STAR bond district plan" means the preliminary or
conceptual plan that generally identifies the proposed STAR
bond project areas and identifies in a general manner the
buildings, facilities, and improvements to be constructed or
improved in each STAR bond project area or, for a NOVA urban
district, the STAR bond district plan may also include a
specific STAR bond project.
"STAR bond project" means a project that is located within
a STAR bond district and that is approved under Section 5-30.
"STAR bond project area" means the geographic area within

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a STAR bond district in which there may be one or more STAR
bond projects.
"STAR bond project plan" means the written plan adopted by
a political subdivision for the development of a STAR bond
project in a STAR bond district; the plan may include, but is
not limited to, (i) project costs incurred prior to the date of
the STAR bond project plan and estimated future STAR bond
project costs, (ii) proposed sources of funds to pay those
costs, (iii) the nature and estimated term of any obligations
to be issued by the political subdivision to pay those costs,
(iv) the most recent equalized assessed valuation of the STAR
bond project area, (v) an estimate of the equalized assessed
valuation of the STAR bond district or applicable project area
after completion of a STAR bond project, (vi) a general
description of the types of any known or proposed developers
or development , users, or tenants of the STAR bond project or
projects included in the plan, (vii) a general description of
the type, structure, and character of the property or
facilities to be developed or improved, (viii) a description
of the general land uses to apply to the STAR bond project, and
(ix) a general description or an estimate of the type, class,
and number of employees to be employed in the operation of the
STAR bond project.
"State sales tax" means all the net revenue realized under
the Retailers' Occupation Tax Act, the Use Tax Act, the
Service Use Tax Act, and the Service Occupation Tax Act from

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transactions at places of business located within a STAR bond
district, excluding that portion of the net revenue realized
under the Retailers' Occupation Tax Act, the Use Tax Act, the
Service Use Tax Act, and the Service Occupation Tax Act from
transactions at places of business located within a STAR bond
district that is deposited into the Local Government Tax Fund
and the County and Mass Transit District Fund.
"State sales tax increment" means:
(1) with respect to all STAR bond districts that do
not qualify as NOVA districts or NOVA urban districts:
(A) 100% of that portion of the aggregate State
sales tax that is in excess of the aggregate State
sales tax for the same month in the base year, as
determined by the Department of Revenue, from
transactions at up to 4 development users located
within a STAR bond district, which development users
shall be designated by the master developer and
approved by the political subdivision and the Director
of Revenue in conjunction with the applicable STAR
bond project approval, and may thereafter be
designated or modified, no more than once per year, by
the master developer, subject to the approval of the
political subdivision and the Director of Revenue,
including the designation of additional development
users and an entertainment user, provided that no more
than 4 development users shall be designated and

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approved at any time; and
(B) 25% of that portion of the aggregate State
sales tax that is in excess of the aggregate State
sales tax for the same month in the base year, as
determined by the Department of Revenue from all other
transactions within a STAR bond district; and
(2) with respect to all NOVA districts:
(A) 100% of that portion of the State sales tax
that is in excess of the State sales tax for the same
month in the base year, as determined by the
Department of Revenue, from transactions at up to 4
development users located, which development users
shall be designated by the master developer and
approved by the political subdivision and the Director
of Revenue in conjunction with the applicable STAR
bond project approval; and
(B) 50% of that portion of the State sales tax that
is in excess of the State sales tax for the same month
in the base year from all other transactions within
the NOVA district; and .
(3) with respect to all NOVA urban districts, 100% of
that portion of the State sales tax that is in excess of
the State sales tax for the same month in the base year, as
determined by the Department of Revenue, from all
transactions within the NOVA urban district.
"Substantial change" means a change in which the proposed

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STAR bond project plan differs substantially in size, scope,
or use from the approved STAR bond district plan or STAR bond
project plan.
"Taxpayer" means an individual, partnership, corporation,
limited liability company, trust, estate, or other entity that
is subject to the Illinois Income Tax Act.
"Total development costs" means the aggregate public and
private investment in a STAR bond district, including project
costs and other direct and indirect costs related to the
development of the STAR bond district over the life of the STAR
bond district.
"Underserved area" has the meaning given to that term in
Section 5-5 of the Economic Development for a Growing Economy
Tax Credit Act.
"Vacant" means that portion of the land in a proposed STAR
bond district that is not occupied by a building, facility, or
other vertical improvement.
(Source: P.A. 104-453, eff. 12-12-25.)
(50 ILCS 475/5-15)
Sec. 5-15. Limitations on STAR bond districts and STAR
bond projects. The Office of the Governor, in consultation
with the Department, the Department of Revenue, and the
Governor's Office of Management and Budget, shall have final
approval of all STAR bond districts and STAR bond projects
established under this Act, which may be established

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throughout the 10 Economic Development Regions in the State as
established by the Department. Regardless of the number of
STAR bond districts established within any Economic
Development Region: (i) only one STAR bond project may be
approved for each Economic Development Region having a
population of less than 400,000 600,000; (ii) up to 2 STAR bond
projects may be approved for each Economic Development Region
having a population of between 400,000 and 599,999; (iii) up
to 3 STAR bond projects may be approved for each Economic
Development Region having a population of between 600,000 and
999,999; and (iv) (iii) up to 4 STAR bond projects may be
approved for each Economic Development Region having a
population of 1,000,000 or more, excluding projects located in
STAR bond districts established under the Innovation
Development and Economy Act. A STAR bond district under this
Act may not be located either entirely or partially inside of a
municipality with a population in excess of 2,000,000.
A STAR bond project that is not located in a NOVA district
may not receive reimbursement from the proceeds of bonds
secured by State sales tax increment that exceeds the lesser
of (1) 50% of the total development costs or (2) an aggregate
amount of $75,000,000. A STAR bond project that is located in a
NOVA district may not receive reimbursement from the proceeds
of bonds secured by State sales tax increment that exceeds the
lesser of (1) 50% of the total development costs or (2) an
aggregate amount of $800,000,000. A STAR bond project that is

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located in a NOVA urban district may not receive reimbursement
from the proceeds of bonds secured by State sales tax
increment that exceeds the lesser of (1) 75% of the total
development costs or (2) an aggregate amount of
$1,600,000,000.
(Source: P.A. 104-453, eff. 12-12-25.)
(50 ILCS 475/5-20)
Sec. 5-20. Establishment of STAR bond district.
(a) The corporate authorities of a municipality may
establish a STAR bond district within an eligible area within
the municipality or partially outside the boundaries of the
municipality in an unincorporated area of the county. A STAR
bond district that is partially outside the boundaries of the
municipality must also be approved by the corporate
authorities of the county by the passage of a resolution. The
corporate authorities of a county may establish a STAR bond
district in an eligible area in any unincorporated area of the
county.
(b) When a political subdivision is interested in
establishing a STAR bond district, the political subdivision
must first provide notice to the Director of Commerce and
Economic Opportunity and the Director of Revenue on or before
June 1, 2026 of its intention to establish a STAR bond district
(or by September 1, 2026 if the political subdivision intends
to establish a NOVA district). After filing notice, the

10400HB0910ham003 - 131 - LRB104 04808 HLH 37059 a
political subdivision shall determine whether the area
satisfies the statutory criteria to establish a STAR bond
district consistent with this Act. The corporate authorities
of the political subdivision shall adopt a resolution stating
that the political subdivision is considering the
establishment of a STAR bond district. The resolution shall:
(1) give notice, in the same manner as set forth in
subsection (e) of Section 5-30, that a public hearing will
be held to consider the establishment of a STAR bond
district and fix the date, hour, and place of the public
hearing, which shall be at a location that is within 20
miles of the STAR bond district, in a facility that can
accommodate a large crowd, and in a facility that is
accessible to persons with disabilities;
(2) describe the proposed general boundaries of the
STAR bond district;
(3) describe the STAR bond district plan;
(4) require that a description and map of the proposed
STAR bond district are available for inspection at a time
and place designated;
(5) identify the master developer for the STAR bond
district; and
(6) require that the corporate authorities consider
findings necessary for the establishment of a STAR bond
district.
(c) Upon the conclusion of the public hearing the

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corporate authorities of the political subdivision may adopt a
resolution to establish the STAR bond district. The corporate
authorities of a municipality with a population of 2,000,000
or more may proceed directly to adopt a resolution to
establish a NOVA urban district.
(1) A resolution to establish a STAR bond district
shall:
(A) make findings that the proposed STAR bond
district is to be developed with a STAR bond project;
(B) make findings that the STAR bond district is
an eligible area;
(C) contain a STAR bond district plan that
identifies in a general manner the buildings and
facilities that are proposed to be constructed or
improved as part of the STAR bond project and that
includes plans for at least one development user;
(D) contain the legal description of the STAR bond
district;
(E) appoint the master developer for the STAR bond
district, subject to the provisions of Section 5-25,
and, if applicable, verify that master developer has a
signed project labor agreement for the construction of
future improvements within any STAR bond projects;
(F) if applicable, make a finding that the STAR
bond district plan demonstrates a reasonable
expectation that it will meet the acreage, capital

10400HB0910ham003 - 133 - LRB104 04808 HLH 37059 a
investment, sales, and job creation thresholds
necessary to qualify as a NOVA district or NOVA urban
district and contains a request for a NOVA district
designation or NOVA urban district; and
(G) establish the STAR bond district, contingent
upon approval of the State as set forth in subsection
(e).
(2) For STAR bond districts other than a NOVA urban
district, if If the resolution to establish a STAR bond
district is not adopted by the political subdivision
within 60 days after the conclusion of the public hearing,
then the STAR bond district shall not be established.
(3) Upon adoption of a resolution to establish a STAR
bond district, the political subdivision shall send a
certified copy of the resolution to the Director of
Commerce and Economic Opportunity, the Director of
Revenue, and the Director of the Governor's Office of
Management and Budget within 60 days after the adoption of
the resolution.
(d) Upon adoption of a resolution to establish a STAR bond
district, the STAR bond district and any STAR bond project
shall be governed by a master development agreement between
the political subdivision and the master developer. A STAR
bond district that is partially outside the boundaries of a
municipality shall require only one master development
agreement, which shall be between the municipality and the

10400HB0910ham003 - 134 - LRB104 04808 HLH 37059 a
master developer. In no event shall there be more than one
master development agreement governing the terms and
conditions of a STAR bond district. The master development
agreement shall require the master developer to ensure
compliance with the following requirements to reduce the
ecological impact of the STAR bond district development: (i)
inclusion of pollution prevention, erosion, and sedimentation
control plans during construction; (ii) protection of
endangered species' habitat and wetlands mitigation; (iii)
preservation of at least 20% of the STAR bond district as green
space, including lawns, parks, landscaped areas, paths, lakes,
ponds, and other water features or, for a NOVA urban district,
inclusion of such green space, including lawns, parks,
landscaped areas, paths, lakes, ponds, and other water
features, as set forth in the STAR bond project plan; (iv)
promotion of the use of renewable energy to the extent
commercially feasible; (v) implementation of recycling
programs during construction and at completed STAR bond
projects; (vi) preservation of water quality and promotion of
water conservation through the use of techniques such as
reusing storm water and landscaping with native and
low-maintenance vegetation to reduce the need for irrigation
and fertilization; (vii) inclusion of comprehensive lighting
programs that reduce light pollution within the STAR bond
district; and (viii) promotion of shared parking between
different users and the political subdivision to reduce the

10400HB0910ham003 - 135 - LRB104 04808 HLH 37059 a
impact on project sites.
(e) Upon adoption of a resolution to establish a STAR bond
district, the political subdivision shall submit the proposed
STAR bond district plan to the Department, the Department of
Revenue, and the Governor's Office of Management and Budget
for consideration. All proposed STAR bond district plans must
be submitted on or before January 1, 2027 for consideration
(or by June 1, 2027 if the district is a NOVA district). The
Department, the Department of Revenue, and the Governor's
Office of Management and Budget shall make a joint
recommendation to approve a STAR bond district if the agencies
find that: (i) the proposed STAR bond district is an eligible
area; (ii) the STAR bond district plan includes a STAR bond
project that would entail a projected capital investment of at
least $30,000,000 for a STAR bond district that is not
proposed to be designated as a NOVA district, or $500,000,000
for a STAR bond district that is proposed to be designated as a
NOVA district, or $1,000,000,000 for a STAR bond district that
is proposed to be designated as a NOVA urban district; (iii)
the STAR bond district plan includes a STAR bond project that
is reasonably projected to produce at least $60,000,000 of
annual gross sales and at least 300 new jobs or, for a STAR
bond district proposed to be designated as a NOVA district, at
least $300,000,000 of annual gross sales and 1,500 new jobs
or, for a STAR bond district proposed to be designated as a
NOVA urban district, at least $450,000,000 of annual gross

10400HB0910ham003 - 136 - LRB104 04808 HLH 37059 a
sales and 3,000 new jobs; (iv) the STAR bond district plan
includes potential development users; (v) the creation of the
STAR bond district and STAR bond district plan are in
accordance with the purpose of this Act and the public
interest; and (vi) the STAR bond district and STAR bond
district plan meet any other requirement that the State deems
appropriate. The agencies shall send a copy of their written
findings and recommendation for approval or denial of a STAR
bond district to the Office of the Governor for review and
final action. In the case of any NOVA district or NOVA urban
district, those written findings and recommendations shall be
submitted to the Office of the Governor within 60 days
following the agencies' receipt of the District Plan proposing
the NOVA district or NOVA urban district.
(f) Upon receipt of the written findings and
recommendations, the Office of the Governor shall review the
submission and issue a final approval or denial of the STAR
bond district and send written notice of its approval or
denial to the requesting political subdivision and to the
agencies. If requested by the political subdivision under
paragraph (F) of subsection (c) of this Section, the written
notice shall also include a determination as to whether the
proposed STAR bond district qualifies for designation as a
NOVA district or NOVA urban district and shall be issued
within 30 days after the Office of the Governor receives the
written findings of the agencies as provided in subsection

10400HB0910ham003 - 137 - LRB104 04808 HLH 37059 a
(e).
(g) Starting on the fifth anniversary of the first date of
distribution of State sales tax increment from the approved
STAR bond project in the STAR bond district, or, if the project
is in a NOVA district, the earlier of (i) the fifteenth
anniversary of that date or (ii) the date requested by the
master developer, and continuing each anniversary thereafter,
the Director shall, in consultation with the political
subdivision and the master developer, determine the total
number of new jobs created within the STAR bond district, the
total development cost to date, and the master developer's
compliance with its obligations under any written agreements
with the State. If, on the fifth anniversary of the first date
of distribution of State sales tax increment from the approved
STAR bond project in the STAR bond district, or the earlier of
(i) the fifteenth anniversary of that date or (ii) the date
requested by the master developer if the project is in a NOVA
district or NOVA urban district, the Director determines that
the total development cost to date is not equal to or greater
than (i) $30,000,000 if the project is not in a NOVA district
or NOVA urban district, (ii) $500,000,000 if the project is in
a NOVA district, or (iii) $1,000,000,000 if the project is in a
NOVA urban district, or that the master developer is in breach
of any written agreement with the State, then no new STAR bonds
may be issued in the STAR bond district until the total
development cost exceeds $30,000,000, or $500,000,000, or

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$1,000,000,000, as applicable, or the breach of agreement is
cured, or both. If, on the fifth anniversary of the first date
of distribution of State sales tax increment from the approved
STAR bond project in the STAR bond district, or the earlier of
(i) the fifteenth anniversary of that date or (ii) the date
requested by the master developer if the project is in a NOVA
district or a NOVA urban district, there are not at least (i)
300 new jobs existing in the STAR bond district if the project
is not in a NOVA district or a NOVA urban district, (ii) 1,500
new jobs existing in the STAR bond district if the project is
in a NOVA district, or (iii) 3,000 new jobs existing in the
STAR bond district if the project is in a NOVA urban district,
the State may require the master developer to pay the State a
penalty of $1,500 per job under 300, or 1,500, or 3,000, as
applicable, each year until the earlier of (i) the
twenty-third anniversary of the first date of distribution of
State sales tax increment from the approved STAR bond project
in the STAR bond district, (ii) the date that all STAR bonds
issued in the STAR bond district have been paid off, or (iii)
the date on which at least 300 jobs, or 1,500 jobs, or 3,000
jobs, as applicable, have been created in the STAR bond
district. Upon creation of 300 jobs, or 1,500 jobs, or 3,000
jobs, as applicable, in the STAR bond district, there shall
not be an ongoing obligation to maintain those jobs after the
fifth anniversary of the first date of distribution of State
sales tax increment from the approved STAR bond project in the

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STAR bond district, and the master developer shall be relieved
of any liability with respect to job creation under this
subsection. Notwithstanding anything to the contrary in this
subsection, the master developer shall not be liable for the
penalties set forth in this subsection if the breach of
agreement, failure to reach the required amount in total
development costs, or failure to create the required number of
jobs is due to delays caused by force majeure, as that term is
defined in the master development agreement.
(Source: P.A. 104-453, eff. 12-12-25.)
(50 ILCS 475/5-30)
Sec. 5-30. Approval of STAR bond projects.
(a) The corporate authorities of a political subdivision
seeking to establish a STAR bond project in an approved STAR
bond district must submit a proposed STAR bond project plan to
the Department, the Department of Revenue, and the Governor's
Office of Management and Budget on or before June 1, 2028. A
STAR bond project plan for a NOVA urban district may be
submitted to the Department of Commerce and Economic
Opportunity, the Department of Revenue, and the Governor's
Office of Management and Budget concurrent with the process
for approval of a STAR bond district in Section 5-20 of this
Act. A STAR bond project which is partially outside the
boundaries of a municipality must also be approved by the
corporate authorities of the county by resolution.

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After the establishment of a STAR bond district, the
master developer may propose a STAR bond project to a
political subdivision, and the master developer shall, in
cooperation with the political subdivision, prepare a STAR
bond project plan in consultation with the planning commission
of the political subdivision, if any. The STAR bond project
plan may be implemented in separate development stages.
(b) Any political subdivision considering a STAR bond
project within a STAR bond district shall cause to be prepared
an independent feasibility study. The feasibility study shall
be prepared by a feasibility consultant approved by the
Department. The feasibility consultant shall provide certified
copies of the feasibility study to the political subdivision,
the Department, the Department of Revenue, and the Governor's
Office of Management and Budget. The feasibility study shall
include the following:
(1) the estimated amount of pledged STAR revenues
expected to be collected in each year through the maturity
date of the proposed STAR bonds;
(2) a statement of how the jobs and taxes obtained
from the STAR bond project will contribute significantly
to the economic development of the State and region;
(3) visitation expectations;
(4) the unique quality of the project;
(5) an economic impact study;
(6) a market study;

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(7) current and anticipated infrastructure analysis;
(8) integration and collaboration with other resources
or businesses;
(9) the quality of service and experience provided, as
measured against national consumer standards for the
specific target market;
(10) project accountability, measured according to
best industry practices;
(11) the expected return on State and local investment
that the STAR bond project is anticipated to produce; and
(12) an anticipated principal and interest payment
schedule on the STAR bonds.
The feasibility consultant, along with any other
consultants commissioned to perform the studies and other
analysis required by the feasibility study, shall be selected
by the political subdivision but approved by the Department.
The consultants shall be retained by the political
subdivision. The political subdivision may seek reimbursement
from the master developer.
The failure to include all information enumerated in this
subsection in the feasibility study for a STAR bond project
shall not affect the validity of STAR bonds issued under this
Act. A feasibility study for a NOVA urban district completed
for the Office of the Governor and the Department of Commerce
and Economic Opportunity within 36 months before or after the
effective date of this amendatory Act of the 104th General

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Assembly shall meet the requirements of this Section.
(c) If the political subdivision determines the STAR bond
project is feasible, the STAR bond project plan shall include:
(1) a summary of the feasibility study;
(2) a reference to the STAR bond district plan that
identifies the STAR bond project area that is set forth in
the STAR bond project plan that is being considered;
(3) a legal description and map of the STAR bond
project area to be developed or redeveloped;
(4) a description of the buildings and facilities
proposed to be constructed or improved in the STAR bond
project area, including development users, as applicable;
(5) a copy of letters of intent to locate within the
STAR bond district signed by both the master developer and
the appropriate corporate officer of at least one
development user for the STAR bond project proposed within
the district;
(6) a copy of a project labor agreement entered into
by the master developer and a commitment by the master
developer, other developers, contractors, and
subcontractors to comply with the requirements of Section
30-22 of the Illinois Procurement Code as they apply to
responsible bidders; and
(6.5) if applicable, the geographic boundaries of the
area within the STAR bond district that constitutes an
entertainment user area, as such designated area shall be

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identified by the master developer; and
(7) any other information the corporate authorities of
the political subdivision deems reasonable and necessary
to advise the public of the intent of the STAR bond project
plan.
(d) Before a political subdivision may hold a public
hearing to consider a STAR bond project plan, the political
subdivision must apply to the Department, the Department of
Revenue, and the Governor's Office of Management and Budget
for joint review and recommendation and ultimate approval or
denial by the Office of the Governor of the STAR bond project
plan. The corporate authorities of a political subdivision
seeking to establish a STAR bond project in an approved STAR
bond district must submit a proposed STAR bond project plan to
the Department, the Department of Revenue, and the Governor's
Office of Management and Budget by June 1, 2028 for
consideration.
An application for approval of a STAR bond project plan
must not be approved by the State unless all the components of
the feasibility study set forth in paragraphs (1) through (12)
of subsection (b) have been completed and submitted for review
and recommendation for approval or denial. In addition to
reviewing all the other elements of the STAR bond project plan
required under subsection (c), which must be included in the
application and include a letter of intent as required under
paragraph (5) of subsection (c) in order to receive State

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approval, the Department, the Department of Revenue, and the
Governor's Office of Management and Budget must review the
feasibility study and consider all the components of the
feasibility study set forth in paragraphs (1) through (12) of
subsection (b), including, without limitation, the economic
impact study and the financial benefit of the proposed STAR
bond project to the local, regional, and State economies, the
proposed adverse impacts on similar businesses and projects as
well as municipalities within the market area, and the net
effect of the proposed STAR bond project on the local,
regional, and State economies. In addition to the economic
impact study, the political subdivision must also submit to
the agencies, as part of its application, the financial and
other information that substantiates the basis for the
conclusion of the economic impact study, in the form and
manner as required by the agencies, so that the agencies can
verify the results of the study. In addition to any other
criteria in this subsection, the State may not approve the
STAR bond project plan unless the agencies are satisfied that
the proposed development users are, in fact, true development
users and find that the STAR bond project plan is in accordance
with the purpose of this Act and the public interest. As part
of the review, the agencies shall evaluate the conclusions of
the feasibility study as it relates to the projected State and
local sales tax increments expected to be generated in the
STAR bond district. The Department, the Department of Revenue,

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and the Governor's Office of Management and Budget shall
jointly recommend the approval of a STAR bond project plan. In
making the recommendation, the agencies shall consider the
proximity of a proposed STAR bond project to another proposed
or existing STAR bond project. Notwithstanding any other
provision of this Act, the Department, the Department of
Revenue, and the Governor's Office of Management and Budget
shall not approve any STAR bond project plan that includes as
part of the plan the development of any facility, stadium,
arena, or other structure if: (1) the purpose of the facility,
stadium, arena, or other structure is the holding of
professional sports contests; or (2) the facility, stadium,
arena, or other structure is within a one-mile radius of any
structure that is developed on or after the effective date of
this Act and has as one of its purposes the holding of
professional sports contests except, in respect of a STAR bond
project in a NOVA urban district, for a structure that is
within a one-mile radius of an existing stadium that may be
redeveloped on or after the effective date of this Act and has
as one of its purposes the holding of professional sports
contests. As used in this Section, "development of any
facility, stadium, arena, or other structure" does not include
the construction, development, or maintenance of
infrastructure that serves such a facility, stadium, arena, or
other structure. The agencies shall send a copy of their
written findings and recommended approval or denial of the

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STAR bond project plan to the Office of the Governor for final
action. Upon receipt of the Director's written findings and
recommendation, the Office of the Governor shall issue a final
approval or denial of the STAR bond project plan based on the
criteria in this subsection and Section 5-15 and send a
written approval or denial to the requesting political
subdivision. Notwithstanding any other provision of law, for
STAR bond districts designated as NOVA districts or NOVA urban
districts, the Office of the Governor shall issue a final
approval or denial of the STAR bond project plan based on the
criteria in this subsection and Section 5-15 and send written
approval or denial to the requesting political subdivision
within 180 days or, for a NOVA urban district, 60 days, after
the political subdivision applies for approval, as set out in
this subsection (d). In granting its approval, the Office of
the Governor may require the political subdivision to execute
a binding agreement or memorandum of understanding with the
State. The terms of the agreement or memorandum may include,
among other things, the political subdivision's repayment of
the State sales tax increment distributed to it if any
violation of the agreement or memorandum or this Act occurs.
(e) Upon a finding by the planning and zoning commission
of the political subdivision, if any, that the STAR bond
project plan is consistent with the intent of the
comprehensive plan for the development of the political
subdivision and upon issuance of written approval of the STAR

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bond project plan from the Office of the Governor under
subsection (d) of this Section, the corporate authorities of
the political subdivision shall adopt a resolution stating
that the political subdivision is considering the adoption of
the STAR bond project plan. The resolution shall:
(1) give notice that a public hearing will be held to
consider the adoption of the STAR bond project plan and
fix the date, hour, and place of the public hearing;
(2) describe the general boundaries of the STAR bond
district within which the STAR bond project will be
located and the date of establishment of the STAR bond
district;
(3) describe the general boundaries of the area
proposed to be included within the STAR bond project area;
(4) provide that the STAR bond project plan and map of
the area to be redeveloped or developed are available for
inspection during regular office hours in the offices of
the political subdivision; and
(5) contain a summary of the terms and conditions of
any proposed project development agreement with the
political subdivision.
(f) A public hearing shall be conducted to consider the
adoption of any STAR bond project plan.
(1) The date fixed for the public hearing to consider
the adoption of the STAR bond project plan shall be not
less than 20 nor more than 90 days following the date of

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the adoption of the resolution fixing the date of the
hearing.
(2) A copy of the political subdivision's resolution
providing for the public hearing shall be sent by
certified mail, return receipt requested, to the corporate
authorities of the county. A copy of the political
subdivision's resolution providing for the public hearing
shall be sent by certified mail, return receipt requested,
to each person or persons in whose name the general taxes
for the last preceding year were paid on each parcel of
land lying within the proposed STAR bond project area
within 10 days following the date of the adoption of the
resolution. The resolution shall be published once in a
newspaper of general circulation in the political
subdivision not less than one week nor more than 3 weeks
before the date fixed for the public hearing. A map or
aerial photo clearly delineating the area of land proposed
to be included within the STAR bond project area shall be
published with the resolution.
(3) The hearing shall be held at a location that is
within 20 miles of the STAR bond district or, for a NOVA
urban district, within 2 miles of the STAR bond district,
in a facility that can accommodate a large crowd and is
accessible to persons with disabilities.
(4) At the public hearing, a representative of the
political subdivision or master developer shall present

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the STAR bond project plan. Following the presentation of
the STAR bond project plan, all interested persons shall
be given an opportunity to be heard. The corporate
authorities may continue the date and time of the public
hearing.
(g) Upon conclusion of the public hearing, the governing
body of the political subdivision may adopt the STAR bond
project plan by a resolution approving the STAR bond project
plan.
(h) After the adoption by the corporate authorities of the
political subdivision of a STAR bond project plan, the
political subdivision may enter into a project development
agreement if the master developer has requested the political
subdivision to be a party to the project development agreement
under subsection (b) of Section 5-40.
(i) Within 30 days after the adoption by the political
subdivision of a STAR bond project plan, the clerk of the
political subdivision shall transmit a copy of the legal
description of the land and a list of all new and existing
mailing addresses within the STAR bond district, a copy of the
resolution adopting the STAR bond project plan, and a map or
plat indicating the boundaries of the STAR bond project area
and STAR bond district to the clerk, treasurer, and governing
body of the county and to the Department and Department of
Revenue. Within 30 days of creation of any new mailing address
within a STAR bond district, the clerk of the political

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subdivision shall provide written notice of that new address
to the Department and the Department of Revenue.
If a certified copy of the resolution adopting the STAR
bond project plan is filed with the Department of Revenue on or
before the first day of April, the Department of Revenue, if
all other requirements of this subsection are met, shall
proceed to collect and allocate any local sales tax increment
and any State sales tax increment in accordance with the
provisions of this Act on the first day of July next following
the adoption and filing. If a certified copy of the resolution
adopting the STAR bond project plan is filed with the
Department of Revenue after April 1 but on or before the first
day of October, the Department of Revenue, if all other
requirements of this subsection are met, shall proceed to
collect and allocate any local sales tax increment and any
State sales tax increment in accordance with the provisions of
this Act as of the first day of January next following the
adoption and filing. Notwithstanding the foregoing, any local
hotel taxes and visitor investment surcharges that are
designated as pledged STAR revenues pursuant to this Act shall
be calculated, collected, and administered by the political
subdivision imposing such tax, and shall not be subject to
collection or allocation by the Department of Revenue.
Any substantial changes to a STAR bond project plan as
adopted shall be subject to a public hearing following
publication of notice thereof in a newspaper of general

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circulation in the political subdivision and approval by
resolution of the governing body of the political subdivision.
The Department of Revenue shall not collect or allocate
any local sales tax increment or State sales tax increment
until the political subdivision also provides, in the manner
prescribed by the Department of Revenue, the boundaries of the
STAR bond district and each address in the STAR bond district
in such a way that the Department of Revenue can determine by
its address whether a business is located in the STAR bond
district. The political subdivision must provide this boundary
and address information to the Department of Revenue, with a
copy to the Department, on or before April 1 for
administration and enforcement under this Act by the
Department of Revenue beginning on the following July 1 and on
or before October 1 for administration and enforcement under
this Act by the Department of Revenue beginning on the
following January 1. The Department of Revenue shall not
administer or enforce any change made to the boundaries of a
STAR bond district or any address change, addition, or
deletion until the political subdivision reports the boundary
change or address change, addition, or deletion to the
Department of Revenue, with a copy to the Department, in the
manner prescribed by the Department of Revenue. The political
subdivision must provide this boundary change or address
change, addition, or deletion information to the Department of
Revenue, with a copy to the Department, on or before April 1

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for administration and enforcement by the Department of
Revenue of the change, addition, or deletion beginning on the
following July 1 and on or before October 1 for administration
and enforcement by the Department of Revenue of the change,
addition, or deletion beginning on the following January 1. If
a retailer is incorrectly included or excluded from the list
of those located in the STAR bond district, the Department of
Revenue shall be held harmless if the Department reasonably
relied on information provided by the political subdivision.
(j) Any STAR bond project must be approved by the
political subdivision within 23 years after the date of the
approval of the STAR bond district; however, any amendments to
the STAR bond project may occur following that date.
(k) Any developer of a STAR bond project shall commence
work on the STAR bond project within 3 years from the date of
adoption of the STAR bond project plan. If the developer fails
to commence work on the STAR bond project within the 3-year
period, funding for the project shall cease and the developer
of the project or complex shall have one year to appeal to the
political subdivision for a one-time reapproval of the project
and funding. If the project is reapproved, the 3-year period
for commencement shall begin again on the date of the
reapproval. If the project is not reapproved or if the
developer again fails to commence work on the STAR bond
project within the second 3-year period, the project shall be
terminated, and the Department may accept applications for a

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new STAR bond project in the Economic Development Region.
(l) After the adoption of a STAR bond project plan by the
corporate authorities of the political subdivision and
approval by the Office of the Governor under subsection (d),
the political subdivision may authorize the issuance of STAR
bonds in one or more series to finance the STAR bond project or
pay or reimburse any eligible project cost within the STAR
bond district in accordance with the provisions of this Act.
(m) Except as otherwise provided in subsection (n), the
maximum maturity of STAR bonds issued to finance a STAR bond
project shall not exceed 23 years from the first date of
distribution of State sales tax increment from the STAR bond
project to the political subdivision unless the political
subdivision extends that maturity by resolution up to a
maximum of 35 years from such first distribution date. Any
such extension shall require the approval of the Office of the
Governor, upon the recommendation of the Directors. In no
event shall the maximum maturity date for any STAR bonds
exceed that date which is 35 years from the first distribution
date of the first STAR bonds issued in a STAR bond district.
(n) The maximum maturity of STAR bonds issued to finance a
STAR bond project located within a NOVA district or a NOVA
urban district shall not exceed 35 years from the first date of
distribution of State sales tax increment from the STAR bond
project to the political subdivision.
(Source: P.A. 104-453, eff. 12-12-25.)

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(50 ILCS 475/5-35)
Sec. 5-35. Approval of STAR bond projects in NOVA
districts and NOVA urban districts. Notwithstanding any other
provision of this Act, a STAR bond project may be approved
within each STAR bond district designated as a NOVA district
and a NOVA urban district. A NOVA urban district may be
approved concurrent with the designation of the NOVA urban
district. Except as otherwise provided in this Act, approval
of a NOVA district shall follow the same procedures applicable
to STAR bond district approval as provided in Section 5-20,
and that designation shall be determined by the Office of the
Governor during the STAR bond district approval process. The
NOVA district and NOVA urban district must satisfy the
criteria set forth to be considered a NOVA district under
Section 5-10. Except as otherwise provided in this Act,
establishment of a NOVA district or NOVA urban district shall
be construed to have the same application and effect as a STAR
bond district.
(Source: P.A. 104-453, eff. 12-12-25.)
(50 ILCS 475/5-45)
Sec. 5-45. STAR bonds; source of payment.
(a) Any political subdivision shall have the power to
issue STAR bonds in one or more series to finance the
undertaking of any STAR bond project in accordance with the

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provisions of this Act and the Omnibus Bond Acts. Any STAR bond
project approved under this Act may be completed in one or more
phases, and STAR bonds may be issued, in one or more series, to
finance any STAR bond project or phase thereof. STAR bonds may
be issued as revenue bonds, alternate bonds, or general
obligation bonds as defined in and subject to the procedures
provided in the Local Government Debt Reform Act.
STAR bonds may be made payable, both as to principal and
interest, from the following revenues, which, to the extent
pledged by each respective political subdivision or other
public entity for that purpose, shall constitute pledged STAR
revenues:
(1) revenues of the political subdivision derived from
or held in connection with the undertaking and carrying
out of any STAR bond project or projects under this Act;
(2) available private funds and contributions, grants,
tax credits, or other financial assistance from the State
or federal government;
(3) any taxes created under Section 5-50 and
designated as pledged STAR revenues by the political
subdivision;
(4) all the local sales tax increment of a
municipality, county, or other unit of local government,
including an amount equal to the sales tax increment that
is received by a municipality from a sales tax
securitization corporation based on sales of revenues as

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of the date of this Act, which amount shall be pledged as a
first lien on such receipts;
(5) any special service area taxes collected within
the STAR bond district under the Special Service Area Tax
Act, which may be used for the purposes of funding project
costs or paying debt service on STAR bonds in addition to
the purposes contained in the special service area plan;
(6) all the State sales tax increment;
(7) any other revenues appropriated by the political
subdivision; and
(8) any combination of these methods.
(b) The political subdivision may pledge the pledged STAR
revenues to the repayment of STAR bonds before, simultaneously
with, or after the issuance of the STAR bonds.
(c) Bonds issued as revenue bonds shall not be general
obligations of the political subdivision, nor, in any event,
shall they give rise to a charge against the political
subdivision's general credit or taxing powers or be payable
out of any funds or properties other than those set forth in
subsection (a). The bonds shall so state on their face.
(d) For each STAR bond project financed with STAR bonds
payable from the pledged STAR revenues, the political
subdivision shall prepare and submit to the Department, the
Department of Revenue, the Office of the Governor, and the
Governor's Office of Management and Budget by June 1 of each
year a report describing the status of the STAR bond project,

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any expenditures of the proceeds of STAR bonds that have
occurred for the preceding calendar year, and any expenditures
of the proceeds of the bonds expected to occur in the future,
including the amount of pledged STAR revenue, the amount of
revenue that has been spent, the projected amount of the
revenue, and the anticipated use of the revenue. Each annual
report shall be accompanied by an affidavit of the master
developer certifying the contents of the report as true to the
best of the master developer's knowledge. The Department shall
have the right, but not the obligation, to request the Auditor
General to review the annual report and the political
subdivision's records containing the source information for
the report for the purpose of verifying the report's contents.
If the Auditor General declines the request for review, the
Department shall have the right to select an independent
third-party auditor to conduct an audit of the annual report
and the political subdivision's records containing the source
information for the report. The reasonable cost of the audit
shall be paid by the master developer. The master development
agreement shall grant the Department and the Auditor General
the right to review the records of the political subdivision
containing the source information for the report.
(e) As soon as possible after the first day of each month,
upon certification of the Department of Revenue, the
Comptroller shall order transferred and the Treasurer shall
transfer, from the General Revenue Fund to the STAR Bonds

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Revenue Fund, the State sales tax increment for the second
preceding month, less 3% of that amount, which shall be
transferred into the Tax Compliance and Administration Fund
and shall be used by the Department of Revenue, subject to
appropriation, to cover the costs of the Department of Revenue
in administering this Act. As soon as possible after the first
day of each month, upon certification of the Department of
Revenue, the Comptroller shall order transferred and the
Treasurer shall transfer, from the Local Government Tax Fund
to the STAR Bonds Revenue Fund, the local sales tax increment
for the second preceding month, as provided in Section 6z-18
of the State Finance Act and from the County and Mass Transit
District Fund to the STAR Bonds Revenue Fund the local sales
tax increment for the second preceding month, as provided in
Section 6z-20 of the State Finance Act. On or before the 25th
day of each calendar month, the Department of Revenue shall
prepare and certify to the Comptroller the disbursement of
stated sums of money out of the STAR Bonds Revenue Fund to
named municipalities and counties, the municipalities and
counties to be those entitled to distribution of taxes or
penalties paid to the Department of Revenue during the second
preceding calendar month. The amount to be paid to each
municipality or county shall be the amount of the State sales
tax increment and the local sales tax increment (not including
credit memoranda or the amount transferred into the Tax
Compliance and Administration Fund) collected during the

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second preceding calendar month by the Department of Revenue
from retailers and servicepersons on transactions at places of
business located within a STAR bond district in that
municipality or county, plus an amount the Department of
Revenue 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 of
Revenue, and not including any amount which the Department of
Revenue determines is necessary to offset any amounts which
are payable to a different taxing body but were erroneously
paid to the municipality or county. Within 10 days after
receipt by the Comptroller of the disbursement certification
to the municipalities and counties, which shall be given to
the Comptroller by the Department of Revenue, the Comptroller
shall cause the orders to be drawn for the respective amounts
in accordance with the directions contained in the
certification. When certifying the amount of monthly
disbursement to a municipality or county under this
subsection, the Department of Revenue shall increase or
decrease that amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the 6 months
preceding the time a misallocation is discovered.
(f) The corporate authorities of the political subdivision
shall deposit the proceeds for the STAR Bonds Revenue Fund

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into a special fund of the political subdivision called the
"[Name of political subdivision] STAR Bond District Revenue
Fund" for the purpose of paying or reimbursing STAR bond
project costs and obligations incurred in the payment of those
costs. If the political subdivision fails to issue STAR bonds
within 180 days after the first distribution to the political
subdivision from the STAR Bonds Revenue Fund, the Department
of Revenue shall cease distribution of the State sales tax
increment to the political subdivision, shall transfer any
State sales tax increment in the STAR Bonds Revenue Fund to the
General Revenue Fund, and shall cease deposits of State sales
tax increment amounts into the STAR Bonds Revenue Fund. The
political subdivision shall repay all the State sales tax
increment distributed to the political subdivision to date,
which amounts shall be deposited into the General Revenue
Fund. If not repaid within 90 days after notice from the State,
the Department of Revenue shall withhold distributions to the
political subdivision from the Local Government Tax Fund until
the excess amount is repaid, which withheld amounts shall be
transferred to the General Revenue Fund. At such time as the
political subdivision notifies the Department of Revenue in
writing that it has issued STAR Bonds in accordance with this
Act and provides the Department with a copy of the political
subdivision's official statement, bond purchase agreements,
indenture, or other evidence of bond sale, the Department of
Revenue shall resume deposits of the State sales tax increment

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into the STAR Bonds Revenue Fund and distribution of the State
sales tax increment to the political subdivision in accordance
with this Section.
(g) If at any time after the seventh anniversary of the
date of distribution of State sales tax increment from a STAR
bond project the Auditor General determines that the
percentage of the aggregate proceeds of STAR bonds issued to
date that is derived from the State sales tax increment has
exceeded 50% of the total development costs of that STAR Bonds
project, no additional STAR bonds may be issued for that STAR
Bonds project until that percentage is reduced to 50% or
below. When the percentage has been reduced to 50% or below,
the master developer shall have the right, at its own cost, to
obtain a new audit prepared by an independent third-party
auditor verifying compliance and shall provide such audit to
the Auditor General for review and approval. Upon the Auditor
General's determination from the audit that the percentage has
been reduced to 50% or below, STAR bonds may again be issued
for the STAR bond project.
(h) A new tax increment financing district in a NOVA urban
district may be established concurrent with or following the
establishment of the NOVA urban district or other arrangement
in respect of a property tax assessment freeze and special
payment.
(i) The limitation on the rate of tax imposed under
Section 8-3-14a of the Illinois Municipal Code and Section

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5-1300 of the Counties Code does not apply to a tax imposed
under those Sections on businesses within a STAR bond district
by the corporate authorities of any municipality or county
that has established a STAR bond district under this Act.
(Source: P.A. 104-453, eff. 12-12-25.)
(50 ILCS 475/5-50)
Sec. 5-50. STAR bond occupation taxes.
(a) If the corporate authorities of a political
subdivision have established a STAR bond district and have
elected to impose a tax by ordinance under subsection (b), or
(c), or (c-10) of this Section, each year after the date of the
adoption of the ordinance and until all STAR bond project
costs and all political subdivision obligations financing the
STAR bond project costs, if any, have been paid in accordance
with the STAR bond project plans, but in no event longer than
the maximum maturity date of the last of the STAR bonds issued
for projects in the STAR bond district, all amounts generated
by the retailers' occupation tax and service occupation tax
shall be collected, and the tax shall be enforced, by the
Department of Revenue in the same manner as all retailers'
occupation taxes and service occupation taxes imposed in the
political subdivision imposing the tax. The corporate
authorities of the political subdivision shall deposit the
proceeds of the taxes imposed under subsections (b), and (c),
or (c-10) into either (i) a special fund held by the corporate

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authorities of the political subdivision called the STAR Bonds
Tax Allocation Fund for the purpose of paying STAR bond
project costs and obligations incurred in the payment of those
costs if such taxes are designated as pledged STAR revenues by
resolution or ordinance of the political subdivision or (ii)
the political subdivision's general corporate fund if such
taxes are not designated as pledged STAR revenues by
resolution or ordinance.
The tax imposed under this Section by a municipality may
be imposed only on the portion of a STAR bond district that is
within the boundaries of the municipality. For any part of a
STAR bond district that lies outside the boundaries of that
municipality, the municipality in which the other part of the
STAR bond district lies (or the county, in cases where a
portion of the STAR bond district lies in the unincorporated
area of a county) is authorized to impose the tax under this
Section on that part of the STAR bond district.
(b) The corporate authorities of a political subdivision
that has established a STAR bond district under this Act may,
by ordinance or resolution, impose a STAR Bond Retailers'
Occupation Tax upon all persons engaged in the business of
selling tangible personal property, other than an item of
tangible personal property titled or registered with an agency
of this State's government, at retail in the STAR bond
district at a rate not to exceed 1% of the gross receipts from
the sales made in the course of that business, to be imposed

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only in 0.25% increments. The tax may not be imposed on
tangible personal property taxed at the 1% rate under the
Retailers' Occupation Tax Act. The tax may not be imposed on
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
political subdivision.
The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the Department of Revenue. The
certificate of registration that is issued by the Department
of Revenue to a retailer under the Retailers' Occupation Tax
Act shall permit the retailer to engage in a business that is
taxable under any ordinance or resolution enacted under this
subsection without registering separately with the Department
of Revenue under such ordinance or resolution or under this
subsection. The Department of Revenue shall have full power to
administer and enforce this subsection, to collect all taxes
and penalties due under this subsection in the manner
hereinafter provided, and to determine all rights to credit
memoranda arising on account of the erroneous payment of tax
or penalty under this subsection. In the administration of,
and compliance with, this subsection, the Department of
Revenue and persons who are subject to this subsection shall
have the same rights, remedies, privileges, immunities,
powers, and duties, and be subject to the same conditions,
restrictions, limitations, penalties, exclusions, exemptions,

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and definitions of terms and employ the same modes of
procedure, as are prescribed in Sections 1, 1a through 1o, 2
through 2-65 (in respect to all provisions therein other than
the State rate of tax), 2c through 2h, 3 (except as to the
disposition of taxes and penalties collected), 4, 5, 5a, 5b,
5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10,
11, 12, 13, and 14 of the Retailers' Occupation Tax Act and all
provisions of the Uniform Penalty and Interest Act, as fully
as if those provisions were set forth herein.
If a tax is imposed under this subsection (b), a tax shall
also be imposed under subsection (c) of this Section.
(c) If a tax has been imposed under subsection (b), a STAR
Bond Service Occupation Tax shall also be imposed upon all
persons engaged, in the STAR bond district, in the business of
making sales of service, who, as an incident to making those
sales of service, transfer tangible personal property within
the STAR bond district, either in the form of tangible
personal property or in the form of real estate as an incident
to a sale of service. The service occupation tax shall be
imposed upon all persons engaged in the business of making
sales of service at the same rate as the tax imposed in
subsection (b) of the selling price of tangible personal
property transferred within the STAR bond district by such
servicemen as an incident to a sale of service and shall not
exceed 1% and shall be imposed only in 0.25% increments. The
tax may not be imposed on tangible personal property taxed at

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the 1% rate under the Service Occupation Tax Act. The tax may
not be imposed on 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 political subdivision.
The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the Department of Revenue. The
certificate of registration that is issued by the Department
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 taxable under any
ordinance or resolution enacted under this subsection without
registering separately with the Department of Revenue under
that ordinance or resolution or under this subsection. The
Department of Revenue shall have full power to administer and
enforce this subsection, to collect all taxes and penalties
due under this subsection, to dispose of taxes and penalties
so collected in the manner provided in this Act, and to
determine all rights to credit memoranda arising on account of
the erroneous payment of tax or penalty under this subsection.
In the administration of, and compliance with this subsection,
the Department of Revenue and persons who are subject to this
subsection shall have the same rights, remedies, privileges,
immunities, powers, and duties, and be subject to the same
conditions, restrictions, limitations, penalties, exclusions,
exemptions, and definitions of terms and employ the same modes

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of procedure as are prescribed in Sections 2, 2a through 2d, 3
through 3-50 (in respect to all provisions therein other than
the State rate of tax), 4 (except that the reference to the
State shall be to the STAR bond district), 5, 7, 8 (except that
the jurisdiction to which the tax shall be a debt to the extent
indicated in that Section 8 shall be the political
subdivision), 9 (except as to the disposition of taxes and
penalties collected, and except that the returned merchandise
credit for this tax may not be taken against any State tax),
10, 11, 12 (except the reference therein to Section 2b of the
Retailers' Occupation Tax Act), 13 (except that any reference
to the State shall mean the political subdivision), the first
paragraph of Section 15, and Sections 16, 17, 18, 19 and 20 of
the Service Occupation Tax Act and all provisions of the
Uniform Penalty and Interest Act, as fully as if those
provisions were set forth herein.
If a tax is imposed under this subsection (c), a tax shall
also be imposed under subsection (b) of this Section.
(c-10) The corporate authorities of any political
subdivision that has established a STAR bond district under
this Act may, by ordinance or resolution, impose a visitor
investment surcharge upon all admission and charges from
transactions at places of business located within the STAR
bond district, at a rate not to exceed 9% of the gross receipts
derived from any admission and charge within the STAR bond
district, to be imposed only in 0.25% increments to pay for

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eligible project cost. The charge imposed under this
subsection and all civil penalties that may be assessed as an
incident thereof shall be collected and enforced by the
political subdivision. For purposes of this Section, "visitor
investment surcharges" includes, but is not limited to: (1)
charges for admission to or rental of any physical space or
venue in which attendees gather for entertainment or
amusement, including, but not limited to, facilities owned or
operated by users, destination hotels, amusement parks,
hotels, entertainment venues, or traditional retailers,
resorts, golf or pickle ball type facilities, simulator type
facilities, music venues, water parks, RV parks, surf parks,
ice rinks, family entertainment type facilities, zip line
courses, wake boarding courses, miniature golf courses,
go-cart tracks or facilities, arcades and other venues
designed for the playing of video games, pinball machines,
air-hockey, billiards tables, or other games operated by coins
or other payment methods, theaters, trade shows and convention
centers, and athletic stadiums or venues for the hosting of
any athletic contest; and (2) any separate charge for
admission or rental to or use of entertainment attractions,
rides, or other activities within the aforementioned venues.
The provisions of this subsection (c-10) are not subject to
subsection (d) of this Section. Notwithstanding the foregoing,
the visitor investment surcharge under this subsection (c-10)
may not be imposed on receipts from transactions that, at the

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time the surcharge is established, are taxable under the
Retailers' Occupation Tax Act, the Use Tax Act, the Service
Use Tax Act, or the Service Occupation Tax Act.
(d) Persons subject to any tax imposed under this Section
may reimburse themselves for their seller's tax liability
under this Section by separately stating the tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State taxes that sellers are required
to collect under the Use Tax Act, in accordance with such
bracket schedules as the Department may prescribe.
Whenever the Department of Revenue determines that a
refund should be made under this Section to a claimant the
Department of Revenue shall not issue a credit memorandum. The
Department of Revenue 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 of
Revenue. The refund shall be paid by the State Treasurer out of
the STAR Bond Retailers' Occupation Tax Fund.
Except as otherwise provided in this subsection, the
Department of Revenue shall immediately pay over to the State
Treasurer, ex officio, as trustee, all taxes, penalties, and
interest collected under this Section for deposit into the
STAR Bond Retailers' Occupation Tax Fund. On or before the
25th day of each calendar month, the Department of Revenue
shall prepare and certify to the Comptroller the disbursement
of stated sums of money to named political subdivisions from

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the STAR Bond Retailers' Occupation Tax Fund, the political
subdivisions to be those from which retailers have paid taxes
or penalties under this Section to the Department of Revenue
during the second preceding calendar month. The amount to be
paid to each political subdivision shall be the amount (not
including credit memoranda) collected under this Section
during the second preceding calendar month by the Department
of Revenue plus an amount the Department of Revenue 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 of Revenue, less 3% of that
amount, which shall be deposited into the Tax Compliance and
Administration Fund and shall be used by the Department of
Revenue, subject to appropriation, to cover the costs of the
Department of Revenue in administering and enforcing the
provisions of this Section, on behalf of such political
subdivision, and not including any amount that the Department
of Revenue determines is necessary to offset any amounts that
were payable to a different taxing body but were erroneously
paid to the political subdivision. Within 10 days after
receipt by the Comptroller of the disbursement certification
to the political subdivisions provided for in this Section to
be given to the Comptroller by the Department, the Comptroller
shall cause the orders to be drawn for the respective amounts
in accordance with the directions contained in the

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certification. The proceeds of the tax paid to political
subdivisions under this Section shall be deposited into either
(i) the STAR Bonds Tax Allocation Fund by the political
subdivision if the political subdivision has designated them
as pledged STAR revenues by resolution or ordinance or (ii)
the political subdivision's general corporate fund if the
political subdivision has not designated them as pledged STAR
revenues.
An ordinance or resolution imposing or discontinuing the
tax under this Section or effecting a change in the rate
thereof shall either (i) be adopted and a certified copy
thereof filed with the Department of Revenue on or before the
first day of April, whereupon the Department of Revenue, if
all other requirements of this Section are met, shall proceed
to administer and enforce this Section as of the first day of
July next following the adoption and filing; or (ii) be
adopted and a certified copy thereof filed with the Department
of Revenue on or before the first day of October, whereupon, if
all other requirements of this Section are met, the Department
of Revenue shall proceed to administer and enforce this
Section as of the first day of January next following the
adoption and filing.
The Department of Revenue shall not administer or enforce
an ordinance imposing, discontinuing, or changing the rate of
the tax under this Section until the political subdivision
also provides, in the manner prescribed by the Department of

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Revenue, the boundaries of the STAR bond district and each
address in the STAR bond district in such a way that the
Department of Revenue can determine by its address whether a
business is located in the STAR bond district. The political
subdivision must provide this boundary and address information
to the Department of Revenue on or before April 1 for
administration and enforcement of the tax under this Section
by the Department of Revenue beginning on the following July 1
and on or before October 1 for administration and enforcement
of the tax under this Section by the Department of Revenue
beginning on the following January 1. The Department of
Revenue shall not administer or enforce any change made to the
boundaries of a STAR bond district or any address change,
addition, or deletion until the political subdivision reports
the boundary change or address change, addition, or deletion
to the Department of Revenue in the manner prescribed by the
Department of Revenue. The political subdivision must provide
this boundary change or address change, addition, or deletion
information to the Department of Revenue on or before April 1
for administration and enforcement by the Department of
Revenue of the change, addition, or deletion beginning on the
following July 1 and on or before October 1 for administration
and enforcement by the Department of Revenue of the change,
addition, or deletion beginning on the following January 1.
The retailers in the STAR bond district shall be responsible
for charging the tax imposed under this Section. If a retailer

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is incorrectly included or excluded from the list of those
required to collect the tax under this Section, both the
Department of Revenue and the retailer shall be held harmless
if they reasonably relied on information provided by the
political subdivision.
A political subdivision that imposes the tax under this
Section must submit to the Department of Revenue any other
information as the Department of Revenue may require that is
necessary for the administration and enforcement of the tax.
When certifying the amount of a monthly disbursement to a
political subdivision under this Section, the Department of
Revenue shall increase or decrease the amount by an amount
necessary to offset any misallocation of previous
disbursements. The offset amount shall be the amount
erroneously disbursed within the previous 6 months from the
time a misallocation is discovered.
Nothing in this Section shall be construed to authorize
the political subdivision to impose a tax upon the privilege
of engaging in any business which under the Constitution of
the United States may not be made the subject of taxation by
this State.
The provisions of this subsection (d) apply only to taxes
imposed under subsection (b) and subsection (c) of this
Section.
(e) When STAR bond project costs, including, without
limitation, all political subdivision obligations financing

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STAR bond project costs, have been paid, any surplus funds
then remaining in the STAR Bonds Tax Allocation Fund shall be
distributed to the treasurer of the political subdivision for
deposit into the political subdivision's general corporate
fund. Upon payment of all STAR bond project costs and
retirement of obligations, but in no event later than the
maximum maturity date of the last of the STAR bonds issued in
the STAR bond district, the political subdivision shall adopt
an ordinance immediately rescinding the taxes imposed under
this Section and file a certified copy of the ordinance with
the Department of Revenue in the form and manner as described
in this Section.
(Source: P.A. 104-453, eff. 12-12-25.)
(50 ILCS 475/5-55)
Sec. 5-55. STAR Bonds School Improvement and Operations
Trust Fund.
(a) Deposits into the STAR Bonds School Improvement and
Operations Trust Fund, established under Section 33 of the
Innovation Development and Economy Act, shall be made as
provided under this Section. Moneys in the Trust Fund shall be
used by the Department of Revenue only for the purpose of
making payments to regional superintendents of schools to make
distributions to school districts in educational service
regions that include the STAR bond district. Moneys in the
Trust Fund are not subject to appropriation and shall be used

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solely as provided in this Section. All deposits into the
Trust Fund shall be held in the Trust Fund by the State
Treasurer as ex officio custodian separate and apart from all
public moneys or funds of this State and shall be distributed
by the Department of Revenue exclusively for the purposes set
forth in this Section. All moneys in the Trust Fund shall be
invested and reinvested by the State Treasurer. All interest
accruing from these investments shall be deposited into the
Trust Fund.
(b) Upon approval of a STAR bond district, the political
subdivision shall immediately transmit to the county clerk of
the county in which the district is located a certified copy of
the ordinance creating the district, a legal description of
the district, a map of the district, identification of the
year that the county clerk shall use for determining the total
initial equalized assessed value of the district consistent
with subsection (c), and a list of the parcel or tax
identification number of each parcel of property included in
the district.
(c) Upon approval of a STAR bond district, the county
clerk immediately thereafter shall determine (i) the most
recently ascertained equalized assessed value of each lot,
block, tract, or parcel of real property within the STAR bond
district, from which shall be deducted the homestead
exemptions under Article 15 of the Property Tax Code, which
value shall be the initial equalized assessed value of each

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such piece of property, and (ii) the total equalized assessed
value of all taxable real property within the district by
adding together the most recently ascertained equalized
assessed value of each taxable lot, block, tract, or parcel of
real property within the district, from which shall be
deducted the homestead exemptions under Article 15 of the
Property Tax Code, and shall certify that amount as the total
initial equalized assessed value of the taxable real property
within the STAR bond district.
(d) In reference to any STAR bond district created within
any political subdivision, and in respect to which the county
clerk has certified the total initial equalized assessed value
of the property in the area, the political subdivision may
thereafter request the clerk in writing to adjust the initial
equalized value of all taxable real property within the STAR
bond district by deducting from it the exemptions under
Article 15 of the Property Tax Code applicable to each lot,
block, tract, or parcel of real property within the STAR bond
district. The county clerk shall immediately, after the
written request to adjust the total initial equalized value is
received, determine the total homestead exemptions in the STAR
bond district as provided under Article 15 of the Property Tax
Code by adding together the homestead exemptions provided by
Article 15 on each lot, block, tract, or parcel of real
property within the STAR bond district and then shall deduct
the total of the exemptions from the total initial equalized

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assessed value. The county clerk shall then promptly certify
that amount as the total initial equalized assessed value as
adjusted of the taxable real property within the STAR bond
district.
(e) The county clerk or other person authorized by law
shall compute the tax rates for each taxing district with all
or a portion of its equalized assessed value located in the
STAR bond district. The rate per cent of tax determined shall
be extended to the current equalized assessed value of all
property in the district in the same manner as the rate per
cent of tax is extended to all other taxable property in the
taxing district.
(f) Beginning with the assessment year in which the first
development user in the first STAR bond project in a STAR bond
district makes its first retail sales and for each assessment
year thereafter until final maturity of the last STAR bonds
issued in the district, the county clerk or other person
authorized by law shall determine the increase in equalized
assessed value of all real property within the STAR bond
district by subtracting the initial equalized assessed value
of all property in the district certified under subsection (c)
from the current equalized assessed value of all property in
the district. Each year, the property taxes arising from the
increase in equalized assessed value in the STAR bond district
shall be determined for each taxing district and shall be
certified to the county collector.

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(g) Except in a NOVA district or in a NOVA urban district,
beginning Beginning with the year in which taxes are collected
based on the assessment year in which the first development
user in the first STAR bond project in a STAR bond district
makes its first retail sales and for each year thereafter
until final maturity of the last STAR bonds issued in the
district, the county collector shall, within 30 days after
receipt of property taxes, transmit to the Department of
Revenue to be deposited into the STAR Bonds School Improvement
and Operations Trust Fund 15% of property taxes attributable
to the increase in equalized assessed value within the STAR
bond district from each taxing district as certified in
subsection (f).
(h) The Department of Revenue shall pay to the regional
superintendent of schools whose educational service region
includes a STAR bond district, for each year for which money is
remitted to the Department of Revenue and paid into the STAR
Bonds School Improvement and Operations Trust Fund, the money
in the Fund as provided in this Section. The amount paid to
each school district shall be allocated proportionately by the
regional superintendent of schools, based on each qualifying
school district's fall enrollment for the then-current school
year, such that the school district with the largest fall
enrollment receives the largest proportionate share of money
paid out of the Fund or by any other method or formula that the
regional superintendent of schools deems fit, equitable, and

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in the public interest. The regional superintendent may
allocate moneys to school districts that are outside the
regional superintendent's educational service region or to
other regional superintendents.
The Department of Revenue shall be held harmless for the
distributions made under this Section and all distributions
shall be final.
(i) In any year that an assessment appeal is filed, the
extension of taxes on any assessment so appealed shall not be
delayed. In the case of an assessment that is altered, any
taxes extended upon the unauthorized assessment or part
thereof shall be abated, or, if already paid, shall be
refunded with interest as provided in Section 23-20 of the
Property Tax Code. In the case of an assessment appeal, the
county collector shall notify the Department of Revenue that
an assessment appeal has been filed and the amount of the tax
that would have been deposited into the STAR Bonds School
Improvement and Operations Trust Fund. The county collector
shall hold that amount in a separate fund until the appeal
process is final. After the appeal process is finalized, the
county collector shall transmit to the Department of Revenue
the amount of tax that remains, if any, after all required
refunds are made.
(j) In any year that ad valorem taxes are allocated to the
STAR Bonds School Improvement and Operations Trust Fund, that
allocation shall not reduce or otherwise impact the school aid

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provided to any school district under the general State school
aid formula provided for in Section 18-8.05 of the School Code
or the evidence-based funding formula provided for in Section
18-8.15 of the School Code.
(Source: P.A. 104-453, eff. 12-12-25.)
(50 ILCS 475/5-70)
Sec. 5-70. Restrictions. STAR bond districts may lie
within an enterprise zone. During any period of time that STAR
bonds are outstanding for a STAR bond district, a developer
may not use any land located in the STAR bond district for any
retail store whose primary business is the sale of
automobiles, including trucks and other automotive vehicles
with 4 wheels designed for passenger transportation on public
streets and thoroughfares. No STAR bond district, other than a
NOVA urban district, may contain more than 900,000 square feet
of floor space devoted to traditional retail use, which does
not include space devoted to entertainment venues, hotels,
warehouse space, storage space, or approved development users.
(Source: P.A. 104-453, eff. 12-12-25.)
(50 ILCS 475/5-75)
Sec. 5-75. Reporting taxes.
(a) Notwithstanding any other provisions of law to the
contrary, the Department of Revenue shall provide a certified
report of the State sales tax increment and local sales tax

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increment from all taxpayers within a STAR bond district to
the bond trustee, escrow agent, or paying agent for such bonds
upon the written request of the political subdivision on or
before the 25th day of each month. Such report shall provide a
detailed allocation of State sales tax increment and local
sales tax increment from each local sales tax and State sales
tax reported to the Department of Revenue.
The bond trustee, escrow agent, or paying agent shall keep
such sales and use tax reports and the information contained
therein confidential, but may use such information for
purposes of allocating and depositing the sales and use tax
revenues in connection with the bonds used to finance project
costs in such STAR bond district. Except as otherwise provided
in this Section, the sales and use tax reports received by the
bond trustee, escrow agent, or paying agent shall be subject
to the confidentiality provisions of Section 11 of the
Retailers' Occupation Tax Act. Notwithstanding the provisions
of this Section, local hotel taxes and visitor investment
surcharges that are designated as pledged STAR revenues
pursuant to this Act shall not be included in the Department of
Revenue's certified report and shall instead be reported to
the bond trustee, escrow agent, or paying agent by the
political subdivision in such form and manner as may be
provided in the applicable bond documents.
(b) The political subdivision shall determine when the
amount of sales tax and other revenues that have been

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collected and distributed to the bond debt service or reserve
fund is sufficient to satisfy all principal and interest costs
to the maturity date or dates of any STAR bond issued by a
political subdivision to finance a STAR bond project and shall
give the Department of Revenue written notice of such
determination. The notice shall include a date certain on
which deposits into the STAR Bonds Revenue Fund for that STAR
bond project shall terminate and shall be provided to the
Department of Revenue at least 60 days prior to that date.
Thereafter, all sales tax and other revenues shall be
collected and distributed in accordance with applicable law.
If the political subdivision fails to give timely notice
under this subsection (b), the Department of Revenue, upon
discovery of this failure, shall cease distribution of the
State sales tax increment to the political subdivision, shall
transfer any State sales tax increment in the STAR Bonds
Revenue Fund to the General Revenue Fund, and shall cease
deposits of State sales tax increment amounts into the STAR
Bonds Revenue Fund. Any amount of State sales tax increment
distributed to the political subdivision from the STAR Bonds
Revenue Fund in excess of the amount sufficient to satisfy all
principal and interest costs to the maturity date or dates of
any STAR bond issued by the political subdivision to finance a
STAR bond project shall be repaid to the Department of Revenue
and deposited into the General Revenue Fund. If not repaid
within 90 days after notice from the State, the Department of

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Revenue shall withhold distributions to the political
subdivision from the Local Government Tax Fund until the
excess amount is repaid, which withheld amounts shall be
transferred to the General Revenue Fund.
(Source: P.A. 104-453, eff. 12-12-25.)
Section 10-35. The Counties Code is amended by changing
Sections 5-1006, 5-1006.8, 5-1006.9, 5-1007, and 5-1030 as
follows:
(55 ILCS 5/5-1006) (from Ch. 34, par. 5-1006)
Sec. 5-1006. Home Rule County Retailers' Occupation Tax
Law. Any county that is a home rule unit may impose a tax upon
all persons engaged in the business of selling tangible
personal property, other than an item of tangible personal
property titled or registered with an agency of this State's
government, at retail in the county on the gross receipts from
such sales made in the course of their business. If imposed,
this tax shall only be imposed in 1/4% increments. On and after
September 1, 1991, this additional tax may not be imposed on
tangible personal property taxed at the 1% rate under the
Retailers' Occupation Tax Act (or at the 0% rate imposed under
this amendatory Act of the 102nd General Assembly). Beginning
December 1, 2019, this tax is not imposed on sales of aviation
fuel unless the tax revenue is expended for airport-related
purposes. If the county does not have an airport-related

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

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

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

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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.
As soon as possible after the first day of each month,
beginning July 1, 2026, 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 Statewide
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 transfers 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,

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

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respective amounts in accordance with the directions contained
in the certification.
In addition to the disbursement required by the preceding
paragraph, an allocation shall be made in March of each year to
each county that received more than $500,000 in disbursements
under the preceding paragraph in the preceding calendar year.
The allocation shall be in an amount equal to the average
monthly distribution made to each such county under the
preceding paragraph during the preceding calendar year
(excluding the 2 months of highest receipts). The distribution
made in March of each year subsequent to the year in which an
allocation was made pursuant to this paragraph and the
preceding paragraph shall be reduced by the amount allocated
and disbursed under this paragraph in the preceding calendar
year. The Department shall prepare and certify to the
Comptroller for disbursement the allocations made in
accordance with this paragraph.
For the purpose of determining the local governmental unit
whose tax is applicable, a retail sale by a producer of coal or
other mineral mined in Illinois is a sale at retail at the
place where the coal or other mineral mined in Illinois is
extracted from the earth. This paragraph does not apply to
coal or other mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the United States Constitution as a sale
in interstate or foreign commerce.

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

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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. 102-700, eff. 4-19-22; 103-592, eff. 1-1-25.)
(55 ILCS 5/5-1006.8)
Sec. 5-1006.8. County Cannabis Retailers' Occupation Tax
Law.
(a) This Section may be referred to as the County Cannabis
Retailers' Occupation Tax Law. The corporate authorities of
any county may, by ordinance, impose a tax upon all persons
engaged in the business of selling cannabis, other than

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cannabis purchased under the Compassionate Use of Medical
Cannabis Program Act, at retail in the county on the gross
receipts from these sales made in the course of that business.
If imposed, the tax shall be imposed only in 0.25% increments.
The tax rate may not exceed: (i) 3.75% of the gross receipts of
sales made in unincorporated areas of the county; and (ii) 3%
of the gross receipts of sales made in a municipality located
in the county. The tax imposed under this Section and all civil
penalties that may be assessed as an incident of the tax shall
be collected and enforced by the Department of Revenue. The
Department of Revenue 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 under this Section. In the
administration of and compliance with this Section, the
Department of Revenue 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 described in Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m,
1n, 2 through 2-65 (in respect to all provisions therein other
than the State rate of tax), 2a, 2b, 2c, 2i, 3 (except as to
the disposition of taxes and penalties collected), 4, 5, 5a,

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5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6bb, 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 fully as if those provisions were set forth in this Section.
(b) 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 any State tax that
sellers are required to collect.
(c) Whenever the Department of Revenue determines that a
refund should be made under this Section to a claimant instead
of issuing a credit memorandum, the Department of Revenue
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 of Revenue.
(d) Except as otherwise provided in this Section, the The
Department of Revenue shall immediately pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties
collected hereunder for deposit into the Local Cannabis
Retailers' Occupation Tax Trust Fund.
As soon as possible after the first day of each month,
beginning July 1, 2026, 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 Statewide

10400HB0910ham003 - 194 - LRB104 04808 HLH 37059 a
Innovation Development and Economy Act, collected under this
Section during the second preceding calendar month for sales
within a STAR bond district.
(e) After the monthly transfer to the STAR Bonds Revenue
Fund, on On or before the 25th day of each calendar month, the
Department of Revenue shall prepare and certify to the
Comptroller the amount of money to be disbursed from the Local
Cannabis Retailers' Occupation Tax Trust Fund to counties from
which retailers have paid taxes or penalties under this
Section during the second preceding calendar month. The amount
to be paid to each county shall be the amount (not including
credit memoranda) collected under this Section from sales made
in the county during the second preceding calendar month, plus
an amount the Department of Revenue 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 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, 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 the State Comptroller the

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amount to be transferred into the Tax Compliance and
Administration Fund under this Section. Within 10 days after
receipt by the Comptroller of the disbursement certification
to the counties and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in the certification.
(f) An ordinance or resolution imposing or discontinuing a
tax under this Section or effecting a change in the rate
thereof that is adopted on or after June 25, 2019 (the
effective date of Public Act 101-27) and for which a certified
copy is filed with the Department on or before April 1, 2020
shall be administered and enforced by the Department beginning
on July 1, 2020. For ordinances filed with the Department
after April 1, 2020, an ordinance or resolution imposing or
discontinuing a tax under this Section or effecting a change
in the rate thereof shall either (i) be adopted and a certified
copy thereof filed with the Department on or before the first
day of April, whereupon the Department 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.

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(g) Notwithstanding any provision in this Section to the
contrary, if an ordinance or resolution imposing a tax under
this Section was adopted on or before October 1, 2020 and a
certified copy thereof was filed with the Department of
Revenue on or before November 1, 2020, then the Department
shall proceed to administer and enforce this Section as of May
1, 2021 for such ordinances or resolutions.
(Source: P.A. 101-27, eff. 6-25-19; 101-363, eff. 8-9-19;
101-593, eff. 12-4-19; 102-2, eff. 4-2-21.)
(55 ILCS 5/5-1006.9)
Sec. 5-1006.9. County Grocery Occupation Tax Law.
(a) The corporate authorities of any county may, by
ordinance or resolution that takes effect on or after January
1, 2026, impose a tax upon all persons engaged in the business
of selling groceries at retail in the county, but outside of
any municipality, on the gross receipts from those sales made
in the course of that business. If imposed, the tax shall be at
the rate of 1% of the gross receipts from these sales.
The tax imposed by a county under this subsection and all
civil penalties that may be assessed as an incident of the tax
shall be collected and enforced by the Department. The
certificate of registration that is issued by the Department
to a retailer under the Retailers' Occupation Tax Act shall
permit the retailer to engage in a business that is taxable
under any ordinance or resolution enacted under this

10400HB0910ham003 - 197 - LRB104 04808 HLH 37059 a
subsection without registering separately with the Department
under that ordinance or resolution or under this subsection.
The Department shall have full power to administer and
enforce this subsection; to collect all taxes and penalties
due under this subsection; to dispose of taxes and penalties
so collected in the manner provided in this Section and under
rules adopted by the Department; and to determine all rights
to credit memoranda arising on account of the erroneous
payment of tax or penalty under this subsection.
In the administration of, and compliance with, this
subsection, the Department and persons who are subject to this
subsection shall have the same rights, remedies, privileges,
immunities, powers, and duties, and be subject to the same
conditions, restrictions, limitations, penalties and
definitions of terms, and employ the same modes of procedure,
as are prescribed in Sections 1, 2 through 2-65 (in respect to
all provisions therein other than the State rate of tax and
other than the exemption for food for human consumption that
is to be consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, candy, and food that has been
prepared for immediate consumption), which is authorized to be
taxed as provided in this subsection), 2c, 3 (except as to the
disposition of taxes and penalties collected), 4, 5, 5a, 5b,
5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11,
11a, 12 and 13 of the Retailers' Occupation Tax Act and all of

10400HB0910ham003 - 198 - LRB104 04808 HLH 37059 a
the Uniform Penalty and Interest Act, as fully as if those
provisions were set forth in this Section.
Persons subject to any tax imposed under the authority
granted in this subsection 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 that sellers
are required to collect under the Use Tax Act, pursuant to such
bracket schedules as the Department may prescribe.
(b) If a tax has been imposed under subsection (a), then a
service occupation tax must also be imposed at the same rate
upon all persons engaged, in the county but outside of a
municipality, in the business of making sales of service, who,
as an incident to making those sales of service, transfer
groceries, as defined in this Section, 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. The certificate of
registration that is issued by the Department to a retailer
under the Retailers' Occupation Tax Act or the Service
Occupation Tax Act shall permit the registrant to engage in a
business that is taxable under any ordinance or resolution
enacted pursuant to this subsection without registering
separately with the Department under the ordinance or
resolution or under this subsection.

10400HB0910ham003 - 199 - LRB104 04808 HLH 37059 a
The Department shall have full power to administer and
enforce this subsection, to collect all taxes and penalties
due under this subsection, to dispose of taxes and penalties
so collected in the manner provided in this Section and under
rules adopted by the Department, 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 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 set forth in Sections 2, 2c, 3 through 3-50 (in respect
to all provisions contained in those Sections other than: (i)
the State rate of tax; (ii) the exemption for food for human
consumption that is to be consumed off the premises where it is
sold (other than alcoholic beverages, food consisting of or
infused with adult use cannabis, soft drinks, candy, and food
that has been prepared for immediate consumption), which is
authorized to be taxed as provided in this subsection; and
(iii) the exemption for food prepared for immediate
consumption and transferred incident to a sale of service
subject to the Service Occupation Tax Act or the Service Use
Tax Act by an entity licensed under the Hospital Licensing
Act, the Nursing Home Care Act, the Assisted Living and Shared

10400HB0910ham003 - 200 - LRB104 04808 HLH 37059 a
Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
Specialized Mental Health Rehabilitation Act of 2013, or the
Child Care Act of 1969, or an entity that holds a permit issued
pursuant to the Life Care Facilities Act, which is authorized
to be taxed as provided in this subsection), 4, 5, 7, 8, 9
(except as to the disposition of taxes and penalties
collected), 10, 11, 12, 13, 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 in this Section.
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 Department shall immediately pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties
collected under this Section. Those taxes and penalties shall
be deposited into the County Grocery Tax Trust Fund, a trust
fund created in the State treasury. Except as otherwise
provided in this Section, moneys in the County Grocery Tax
Trust Fund shall be used to make payments to counties and for
the payment of refunds under this Section.
Moneys deposited into the County Grocery Tax Trust Fund

10400HB0910ham003 - 201 - LRB104 04808 HLH 37059 a
under this Section are not subject to appropriation and shall
be used as provided in this Section. All deposits into the
County Grocery Tax Trust Fund shall be held in the County
Grocery Tax Trust Fund by the State Treasurer, ex officio, as
trustee separate and apart from all public moneys or funds of
this State.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the County Grocery Tax Trust Fund.
(d) As soon as possible after the first day of each month,
upon certification of the Department, the Comptroller shall
order transferred, and the Treasurer shall transfer, to the
STAR Bonds Revenue Fund the local sales tax increment, if any,
as defined in the Innovation Development and Economy Act,
collected under this Section.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred, and the Treasurer shall transfer, to
the STAR Bonds Revenue Fund the local sales tax increment, as
defined in the Statewide Innovation Development and Economy
Act, collected under this Section during the second preceding
calendar month for sales within a STAR bond district.

10400HB0910ham003 - 202 - LRB104 04808 HLH 37059 a
After the monthly transfers transfer to the STAR Bonds
Revenue Fund, if any, 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 under this Section 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) collected under this Section
during the second preceding calendar month by the Department
plus an amount the Department determines is necessary to
offset any amounts that were erroneously paid to a different
taxing body, and not including an amount equal to the amount of
refunds made during the second preceding calendar month by the
Department on behalf of such county, 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 county, and not including any
amounts that are transferred to the STAR Bonds Revenue Fund.
Within 10 days after receipt by the Comptroller of the
disbursement certification to the counties 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
amounts in accordance with the directions contained in the
certification.
(e) Nothing in this Section shall be construed to

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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.
(f) Except as otherwise provided in this subsection, 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.
(g) When certifying the amount of a monthly disbursement
to a county 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.
(h) As used in this Section, "Department" means the
Department of Revenue.
For purposes of the tax authorized to be imposed under
subsection (a), "groceries" has the same meaning as "food for

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human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, food
consisting of or infused with adult use cannabis, soft drinks,
candy, and food that has been prepared for immediate
consumption)", as further defined in Section 2-10 of the
Retailers' Occupation Tax Act.
For purposes of the tax authorized to be imposed under
subsection (b), "groceries" has the same meaning as "food for
human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, food
consisting of or infused with adult use cannabis, soft drinks,
candy, and food that has been prepared for immediate
consumption)", as further defined in Section 3-10 of the
Service Occupation Tax Act.
For purposes of the tax authorized to be imposed under
subsection (b), "groceries" also means food prepared for
immediate consumption and transferred incident to a sale of
service subject to the Service Occupation Tax Act or the
Service Use Tax Act by an entity licensed under the Hospital
Licensing Act, the Nursing Home Care Act, the Assisted Living
and Shared Housing Act, the ID/DD Community Care Act, the
MC/DD Act, the Specialized Mental Health Rehabilitation Act of
2013, or the Child Care Act of 1969, or an entity that holds a
permit issued pursuant to the Life Care Facilities Act.
(i) This Section may be referred to as the County Grocery
Occupation Tax Law.

10400HB0910ham003 - 205 - LRB104 04808 HLH 37059 a
(Source: P.A. 103-781, eff. 8-5-24; 104-6, eff. 1-1-26.)
(55 ILCS 5/5-1007) (from Ch. 34, par. 5-1007)
Sec. 5-1007. Home Rule County Service Occupation Tax Law.
The corporate authorities of a home rule county may impose a
tax upon all persons engaged, in such county, in the business
of making sales of service at the same rate of tax imposed
pursuant to Section 5-1006 of the selling price of all
tangible personal property transferred by such servicemen
either in the form of tangible personal property or in the form
of real estate as an incident to a sale of service. If imposed,
such tax shall only be imposed in 1/4% increments. On and after
September 1, 1991, this additional tax may not be imposed on
tangible personal property taxed at the 1% rate under the
Service Occupation Tax Act (or at the 0% rate imposed under
this amendatory Act of the 102nd General Assembly). Beginning
December 1, 2019, this tax is not imposed on sales of aviation
fuel unless the tax revenue is expended for airport-related
purposes. If the county does not have an airport-related
purpose to which it dedicates aviation fuel tax revenue, then
aviation fuel is excluded from the tax. The county must comply
with the certification requirements for airport-related
purposes under Section 2-22 of the Retailers' Occupation Tax
Act. For purposes of this Section, "airport-related purposes"
has the meaning ascribed in Section 6z-20.2 of the State
Finance Act. This exclusion for aviation fuel only applies for

10400HB0910ham003 - 206 - LRB104 04808 HLH 37059 a
so long as the revenue use requirements of 49 U.S.C. 47107(b)
and 49 U.S.C. 47133 are binding on the county. The changes made
to this Section by this amendatory Act of the 101st General
Assembly are a denial and limitation of home rule powers and
functions under subsection (g) of Section 6 of Article VII of
the Illinois Constitution. The tax imposed by a home rule
county pursuant to this Section and all civil penalties that
may be assessed as an incident thereof shall be collected and
enforced by the State Department of Revenue. The certificate
of registration which is issued by the Department to a
retailer under the Retailers' Occupation Tax Act or under the
Service Occupation Tax Act shall permit such registrant to
engage in a business which is taxable under any ordinance or
resolution enacted pursuant to this Section without
registering separately with the Department under such
ordinance or resolution or under this Section. The Department
shall have full power to administer and enforce this Section;
to collect all taxes and penalties due hereunder; to dispose
of taxes and penalties so collected in the manner hereinafter
provided; and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty
hereunder. In the administration of, and compliance with, this
Section the Department and persons who are subject to this
Section shall have the same rights, remedies, privileges,
immunities, powers and duties, and be subject to the same
conditions, restrictions, limitations, penalties and

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definitions of terms, and employ the same modes of procedure,
as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
respect to all provisions therein other than the State rate of
tax), 4 (except that the reference to the State shall be to the
taxing county), 5, 7, 8 (except that the jurisdiction to which
the tax shall be a debt to the extent indicated in that Section
8 shall be the taxing county), 9 (except as to the disposition
of taxes and penalties collected, and except that the returned
merchandise credit for this county tax may not be taken
against any State tax, and except that the retailer's discount
is not allowed for taxes paid on aviation fuel that are subject
to the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133), 10, 11, 12 (except the reference therein to
Section 2b of the Retailers' Occupation Tax Act), 13 (except
that any reference to the State shall mean the taxing county),
the first paragraph of Section 15, 16, 17, 18, 19 and 20 of the
Service Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act, as fully as if those provisions were
set forth herein.
No tax may be imposed by a home rule county pursuant to
this Section unless such county also imposes a tax at the same
rate pursuant to Section 5-1006.
If, on January 1, 2025, a unit of local government has in
effect a tax under this Section, or if, after January 1, 2025,
a unit of local government imposes a tax under this Section,
then that tax applies to leases of tangible personal property

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

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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.
As soon as possible after the first day of each month,
beginning July 1, 2026, 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 Statewide
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 transfers 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

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the disbursement of stated sums of money to named counties,
the counties to be those from which suppliers and servicemen
have paid taxes or penalties hereunder to the Department
during the second preceding calendar month. The amount to be
paid to each county shall be the amount (not including credit
memoranda and not including taxes and penalties collected on
aviation fuel sold on or after December 1, 2019) collected
hereunder during the second preceding calendar month by the
Department, and not including an amount equal to the amount of
refunds made during the second preceding calendar month by the
Department on behalf of such county, and not including any
amounts that are transferred to the STAR Bonds Revenue Fund,
less 1.5% of the remainder, which the Department shall
transfer into the Tax Compliance and Administration Fund. The
Department, at the time of each monthly disbursement to the
counties, shall prepare and certify to the State Comptroller
the amount to be transferred into the Tax Compliance and
Administration Fund under this Section. Within 10 days after
receipt, by the Comptroller, of the disbursement certification
to the counties and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in such certification.
In addition to the disbursement required by the preceding
paragraph, an allocation shall be made in each year to each

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county which received more than $500,000 in disbursements
under the preceding paragraph in the preceding calendar year.
The allocation shall be in an amount equal to the average
monthly distribution made to each such county under the
preceding paragraph during the preceding calendar year
(excluding the 2 months of highest receipts). The distribution
made in March of each year subsequent to the year in which an
allocation was made pursuant to this paragraph and the
preceding paragraph shall be reduced by the amount allocated
and disbursed under this paragraph in the preceding calendar
year. The Department shall prepare and certify to the
Comptroller for disbursement the allocations made in
accordance with this paragraph.
Nothing in this Section shall be construed to authorize a
county to impose a tax upon the privilege of engaging in any
business which under the Constitution of the United States may
not be made the subject of taxation by this State.
An ordinance or resolution imposing or discontinuing a tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of June, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of September next following such adoption and
filing. Beginning January 1, 1992, an ordinance or resolution
imposing or discontinuing the tax hereunder or effecting a
change in the rate thereof shall be adopted and a certified

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copy thereof filed with the Department on or before the first
day of July, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of
October next following such adoption and filing. Beginning
January 1, 1993, an ordinance or resolution imposing or
discontinuing the tax hereunder or effecting a change in the
rate thereof shall be adopted and a certified copy thereof
filed with the Department on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce this Section as of the first day of January next
following such adoption and filing. Beginning April 1, 1998,
an ordinance or resolution imposing or discontinuing the tax
hereunder or effecting a change in the rate thereof shall
either (i) be adopted and a certified copy thereof filed with
the Department on or before the first day of April, whereupon
the Department shall proceed to administer and enforce this
Section as of the first day of July next following the adoption
and filing; or (ii) be adopted and a certified copy thereof
filed with the Department on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce this Section as of the first day of January next
following the adoption and filing.
This Section shall be known and may be cited as the Home
Rule County Service Occupation Tax Law.
(Source: P.A. 102-700, eff. 4-19-22; 103-592, eff. 1-1-25.)

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(55 ILCS 5/5-1030) (from Ch. 34, par. 5-1030)
Sec. 5-1030. Hotel rooms, tax on gross rental receipts.
(a) The corporate authorities of any county may by
ordinance impose a tax upon all persons engaged in such county
in the business of renting, leasing or letting rooms in a hotel
which is not located within a city, village, or incorporated
town that imposes a tax under Section 8-3-14 of the Illinois
Municipal Code, as defined in "The Hotel Operators' Occupation
Tax Act", at a rate not to exceed 5% of the gross rental
receipts from such renting, leasing or letting, excluding,
however, from gross rental receipts, the proceeds of such
renting, leasing or letting to permanent residents of that
hotel, and may provide for the administration and enforcement
of the tax, and for the collection thereof from the persons
subject to the tax, as the corporate authorities determine to
be necessary or practicable for the effective administration
of the tax. As provided in subsection (i) of Section 5-45 of
the Statewide Innovation Development and Economy Act, the
limitation on the rate of tax imposed under this subsection
does not apply to a tax imposed under this subsection by the
corporate authorities of a county on a business located within
a STAR bond district established by the corporate authorities
of the county under the Statewide Innovation Development and
Economy Act.
(b) With the consent of municipalities representing at
least 67% of the population of Winnebago County, as determined

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by the 2010 federal decennial census and as expressed by
resolution of the corporate authorities of those
municipalities, the county board of Winnebago County may, by
ordinance, impose a tax upon all persons engaged in the county
in the business of renting, leasing, or letting rooms in a
hotel that imposes a tax under Section 8-3-14 of the Illinois
Municipal Code, as defined in the Hotel Operators' Occupation
Tax Act, at a rate not to exceed 2% of the gross rental
receipts from renting, leasing, or letting, excluding,
however, from gross rental receipts, the proceeds of the
renting, leasing, or letting to permanent residents of that
hotel, and may provide for the administration and enforcement
of the tax, and for the collection thereof from the persons
subject to the tax, as the county board determines to be
necessary or practicable for the effective administration of
the tax. As provided in subsection (i) of Section 5-45 of the
Statewide Innovation Development and Economy Act, the
limitation on the rate of tax imposed under this subsection
does not apply to a tax imposed under this subsection by the
corporate authorities of a county on a business located within
a STAR bond district established by the corporate authorities
of the county under the Statewide Innovation Development and
Economy Act. The tax shall be instituted on a county-wide
basis and shall be in addition to any tax imposed by this or
any other provision of law. The revenue generated under this
subsection shall be accounted for and segregated from all

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other funds of the county and shall be utilized solely for
either: (1) encouraging, supporting, marketing, constructing,
or operating, either directly by the county or through other
taxing bodies within the county, sports, arts, or other
entertainment or tourism facilities or programs for the
purpose of promoting tourism, competitiveness, job growth, and
for the general health and well-being of the citizens of the
county; or (2) payment towards debt services on bonds issued
for the purposes set forth in this subsection.
(b-5) The county board of Sangamon County may, by
ordinance, impose a tax upon all persons engaged in the county
in the business of renting, leasing, or letting rooms in a
hotel that imposes a tax under Section 8-3-14 of the Illinois
Municipal Code, as defined in the Hotel Operators' Occupation
Tax Act, at a rate not to exceed 3% of the gross rental
receipts from renting, leasing, or letting, excluding,
however, from gross rental receipts, the proceeds of the
renting, leasing, or letting to permanent residents of that
hotel, and may provide for the administration and enforcement
of the tax, and for the collection thereof from the persons
subject to the tax, as the county board determines to be
necessary or practicable for the effective administration of
the tax. As provided in subsection (i) of Section 5-45 of the
Statewide Innovation Development and Economy Act, the
limitation on the rate of tax imposed under this subsection
does not apply to a tax imposed under this subsection by the

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corporate authorities of a county on a business located within
a STAR bond district established by the corporate authorities
of the county under the Statewide Innovation Development and
Economy Act. The tax shall be instituted on a county-wide
basis and shall be in addition to any tax imposed by this or
any other provision of law. The revenue generated under this
subsection shall be accounted for and segregated from all
other funds of the county and shall be used solely for either:
(1) encouraging, supporting, marketing, constructing, or
operating, either directly by the county or through other
taxing bodies within the county, sports, arts, or other
entertainment or tourism facilities or programs for the
purpose of promoting tourism, competitiveness, job growth, and
for the general health and well-being of the citizens of the
county; or (2) payment towards debt services on bonds issued
for the purposes set forth in this subsection; or (3) the
purposes described in the Capital Area Tourism Authority Act.
(c) A Tourism Facility Board shall be established,
comprised of a representative from the county and from each
municipality that has approved the imposition of the tax under
subsection (b) of this Section.
(1) A Board member's vote is weighted based on the
municipality's population relative to the population of
the county, with the county representing the population
within unincorporated areas of the county. Representatives
from the Rockford Park District and Rockford Area

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Convention and Visitors Bureau shall serve as ex-officio
members with no voting rights.
(2) The Board must meet not less frequently than once
per year to direct the use of revenues collected from the
tax imposed under subsection (b) of this Section that are
not already directed for use pursuant to an
intergovernmental agreement between the county and another
entity represented on the Board, including the ex-officio
members, and for any other reason the Board deems
necessary. Affirmative actions of the Board shall require
a weighted vote of Board members representing not less
than 67% of the population of the county.
(3) The Board shall not be a separate unit of local
government, shall have no paid staff, and members of the
Board shall receive no compensation or reimbursement of
expenses from proceeds of the tax imposed under subsection
(b) of this Section.
(d) Persons subject to any tax imposed pursuant to
authority granted by this Section may reimburse themselves for
their tax liability for such tax by separately stating such
tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax imposed under
"The Hotel Operators' Occupation Tax Act".
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

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not be made the subject of taxation by this State.
An ordinance or resolution imposing a tax hereunder or
effecting a change in the rate thereof shall be effective on
the first day of the calendar month next following its passage
and required publication.
The amounts collected by any county pursuant to this
Section shall be expended to promote tourism; conventions;
expositions; theatrical, sports and cultural activities within
that county or otherwise to attract nonresident overnight
visitors to the county.
Any county may agree with any unit of local government,
including any authority defined as a metropolitan exposition,
auditorium and office building authority, fair and exposition
authority, exposition and auditorium authority, or civic
center authority created pursuant to provisions of Illinois
law and the territory of which unit of local government or
authority is co-extensive with or wholly within such county,
to impose and collect for a period not to exceed 40 years, any
portion or all of the tax authorized pursuant to this Section
and to transmit such tax so collected to such unit of local
government or authority. The amount so paid shall be expended
by any such unit of local government or authority for the
purposes for which such tax is authorized. Any such agreement
must be authorized by resolution or ordinance, as the case may
be, of such county and unit of local government or authority,
and such agreement may provide for the irrevocable imposition

10400HB0910ham003 - 219 - LRB104 04808 HLH 37059 a
and collection of said tax at such rate, or amount as limited
by a given rate, as may be agreed upon for the full period of
time set forth in such agreement; and such agreement may
further provide for any other terms as deemed necessary or
advisable by such county and such unit of local government or
authority. Any such agreement shall be binding and enforceable
by either party to such agreement. Such agreement entered into
pursuant to this Section shall not in any event constitute an
indebtedness of such county subject to any limitation imposed
by statute or otherwise.
(Source: P.A. 103-781, eff. 8-5-24.)
Section 10-40. The Illinois Municipal Code is amended by
changing Sections 8-3-14a, 8-4-1, 8-11-1, 8-11-1.3, 8-11-1.4,
8-11-1.6, 8-11-1.7, 8-11-5, 8-11-23, 8-11-24, and 11-74.3-6 as
follows:
(65 ILCS 5/8-3-14a)
Sec. 8-3-14a. Municipal hotel use tax.
(a) The corporate authorities of any municipality may
impose a tax upon the privilege of renting or leasing rooms in
a hotel within the municipality at a rate not to exceed 5% of
the rental or lease payment. As provided in subsection (i) of
Section 5-45 of the Statewide Innovation Development and
Economy Act, the limitation on the rate of tax imposed under
this subsection does not apply to a tax imposed under this

10400HB0910ham003 - 220 - LRB104 04808 HLH 37059 a
subsection by the corporate authorities of a municipality on a
business located within a STAR bond district established by
the corporate authorities of the municipality under the
Statewide Innovation Development and Economy Act. The
corporate authorities may provide for the administration and
enforcement of the tax and for the collection thereof from the
persons subject to the tax, as the corporate authorities
determine to be necessary or practical for the effective
administration of the tax.
(b) Each hotel in the municipality shall collect the tax
from the person making the rental or lease payment at the time
that the payment is tendered to the hotel. The hotel shall, as
trustee, remit the tax to the municipality.
(c) The tax authorized under this Section does not apply
to any rental or lease payment by a permanent resident of that
hotel or to any payment made to any hotel that is subject to
the tax imposed under subsection (c) of Section 13 of the
Metropolitan Pier and Exposition Authority Act. A municipality
may not impose a tax under this Section if it imposes a tax
under Section 8-3-14. Nothing in this Section may be construed
to authorize a municipality to impose a tax upon the privilege
of engaging in any business that under the Constitution of the
United States may not be made the subject of taxation by this
State.
(d) Except as otherwise provided in this Division, the
moneys collected by a municipality under this Section may be

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expended solely to promote tourism and conventions within that
municipality or otherwise to attract nonresident overnight
visitors to the municipality. No moneys received under this
Section may be used to advertise for or otherwise promote new
competition in the hotel business.
(e) As used in this Section, "hotel" has the meaning set
forth in Section 2 of the Hotel Operators' Occupation Tax Act.
(Source: P.A. 101-204, eff. 8-2-19.)
(65 ILCS 5/8-4-1) (from Ch. 24, par. 8-4-1)
Sec. 8-4-1. No bonds shall be issued by the corporate
authorities of any municipality until the question of
authorizing such bonds has been submitted to the electors of
that municipality provided that notice of the bond referendum,
if held before July 1, 1999, has been given in accordance with
the provisions of Section 12-5 of the Election Code in effect
at the time of the bond referendum, at least 10 and not more
than 45 days before the date of the election, notwithstanding
the time for publication otherwise imposed by Section 12-5,
and approved by a majority of the electors voting upon that
question. Notices required in connection with the submission
of public questions on or after July 1, 1999 shall be as set
forth in Section 12-5 of the Election Code. The clerk shall
certify the proposition of the corporate authorities to the
proper election authority who shall submit the question at an
election in accordance with the general election law, subject

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to the notice provisions set forth in this Section.
Notice of any such election shall contain the amount of
the bond issue, purpose for which issued, and maximum rate of
interest.
In addition to all other authority to issue bonds, the
Village of Indian Head Park is authorized to issue bonds for
the purpose of paying the costs of making roadway improvements
in an amount not to exceed the aggregate principal amount of
$2,500,000, provided that 60% of the votes cast at the general
primary election held on March 18, 2014 are cast in favor of
the issuance of the bonds, and the bonds are issued by December
31, 2014.
However, without the submission of the question of issuing
bonds to the electors, the corporate authorities of any
municipality may authorize the issuance of any of the
following bonds:
(1) Bonds to refund any existing bonded indebtedness;
(2) Bonds to fund or refund any existing judgment
indebtedness;
(3) In any municipality of less than 500,000
population, bonds to anticipate the collection of
installments of special assessments and special taxes
against property owned by the municipality and to
anticipate the collection of the amount apportioned to the
municipality as public benefits under Article 9;
(4) Bonds issued by any municipality under Sections

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8-4-15 through 8-4-23, 11-23-1 through 11-23-12, 11-26-1
through 11-26-6, 11-71-1 through 11-71-10, 11-74.3-1
through 11-74.3-7, 11-74.4-1 through 11-74.4-11, 11-74.5-1
through 11-74.5-15, 11-94-1 through 11-94-7, 11-102-1
through 11-102-10, 11-103-11 through 11-103-15, 11-118-1
through 11-118-6, 11-119-1 through 11-119-5, 11-129-1
through 11-129-7, 11-133-1 through 11-133-4, 11-139-1
through 11-139-12, 11-141-1 through 11-141-18 of this
Code, or 10-801 through 10-808 of the Illinois Highway
Code;
(5) Bonds issued by the board of education of any
school district under the provisions of Sections 34-30
through 34-36 of the School Code;
(6) Bonds issued by any municipality under the
provisions of Division 6 of this Article 8; and by any
municipality under the provisions of Division 7 of this
Article 8; or under the provisions of Sections 11-121-4
and 11-121-5;
(7) Bonds to pay for the purchase of voting machines
by any municipality that has adopted Article 24 of the
Election Code;
(8) Bonds issued by any municipality under Sections 15
and 46 of the Environmental Protection Act;
(9) Bonds issued by the corporate authorities of any
municipality under the provisions of Section 8-4-25 of
this Article 8;

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(10) Bonds issued under Section 8-4-26 of this Article
8 by any municipality having a board of election
commissioners;
(11) Bonds issued under the provisions of the Special
Service Area Tax Act (repealed);
(12) Bonds issued under Section 8-5-16 of this Code;
(13) Bonds to finance the cost of the acquisition,
construction, or improvement of water or wastewater
treatment facilities mandated by an enforceable compliance
schedule developed in connection with the federal Clean
Water Act or a compliance order issued by the United
States Environmental Protection Agency or the Illinois
Pollution Control Board; provided that such bonds are
authorized by an ordinance adopted by a three-fifths
majority of the corporate authorities of the municipality
issuing the bonds which ordinance shall specify that the
construction or improvement of such facilities is
necessary to alleviate an emergency condition in such
municipality;
(14) Bonds issued by any municipality pursuant to
Section 11-113.1-1;
(15) Bonds issued under Sections 11-74.6-1 through
11-74.6-45, the Industrial Jobs Recovery Law of this Code;
(16) Bonds issued under the Innovation Development and
Economy Act, except as may be required by Section 35 of
that Act.

10400HB0910ham003 - 225 - LRB104 04808 HLH 37059 a
(17) Bonds issued under the Statewide Innovation
Development and Economy Act, except as may be required by
Section 5-60 of that Act.
(Source: P.A. 102-587, eff. 1-1-22; 103-605, eff. 7-1-24.)
(65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax
Act. The corporate authorities of a home rule municipality may
impose a tax upon all persons engaged in the business of
selling tangible personal property, other than an item of
tangible personal property titled or registered with an agency
of this State's government, at retail in the municipality on
the gross receipts from these sales made in the course of such
business. If imposed, the tax shall only be imposed in 1/4%
increments. On and after September 1, 1991, this additional
tax may not be imposed on tangible personal property taxed at
the 1% rate under the Retailers' Occupation Tax Act (or at the
0% rate imposed under this amendatory Act of the 102nd General
Assembly). Beginning December 1, 2019, this tax is not imposed
on sales of aviation fuel unless the tax revenue is expended
for airport-related purposes. If a municipality does not have
an airport-related purpose to which it dedicates aviation fuel
tax revenue, then aviation fuel is excluded from the tax. Each
municipality must comply with the certification requirements
for airport-related purposes under Section 2-22 of the
Retailers' Occupation Tax Act. For purposes of this Section,

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

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

10400HB0910ham003 - 228 - LRB104 04808 HLH 37059 a
granted in this Section may reimburse themselves for their
seller's tax liability hereunder by separately stating that
tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax which sellers
are required to collect under the Use Tax Act, pursuant to such
bracket schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the home rule municipal retailers' occupation
tax fund or the Local Government Aviation Trust Fund, as
appropriate.
Except as otherwise provided in this paragraph, the
Department shall immediately pay over to the State Treasurer,
ex officio, as trustee, all taxes and penalties collected
hereunder for deposit into the Home Rule Municipal Retailers'
Occupation Tax Fund. Taxes and penalties collected on aviation
fuel sold on or after December 1, 2019, shall be immediately
paid over by the Department to the State Treasurer, ex
officio, as trustee, for deposit into the Local Government
Aviation Trust Fund. The Department shall only pay moneys into
the Local Government Aviation Trust Fund under this Section
for so long as the revenue use requirements of 49 U.S.C.

10400HB0910ham003 - 229 - LRB104 04808 HLH 37059 a
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.
As soon as possible after the first day of each month,
beginning July 1, 2026, 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 Statewide
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 transfers transfer to the STAR Bonds
Revenue Fund, on or before the 25th day of each calendar month,
the Department shall prepare and certify to the Comptroller
the disbursement of stated sums of money to named
municipalities, the municipalities to be those from which
retailers have paid taxes or penalties hereunder to the
Department during the second preceding calendar month. The
amount to be paid to each municipality shall be the amount (not
including credit memoranda and not including taxes and

10400HB0910ham003 - 230 - LRB104 04808 HLH 37059 a
penalties collected on aviation fuel sold on or after December
1, 2019) collected hereunder during the second preceding
calendar month by the Department plus an amount the Department
determines is necessary to offset any amounts that were
erroneously paid to a different taxing body, and not including
an amount equal to the amount of refunds made during the second
preceding calendar month by the Department on behalf of such
municipality, and not including any amount that the Department
determines is necessary to offset any amounts that were
payable to a different taxing body but were erroneously paid
to the municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund, less 1.5% of the
remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt by the
Comptroller of the disbursement certification to the
municipalities and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in the certification.
In addition to the disbursement required by the preceding
paragraph and in order to mitigate delays caused by

10400HB0910ham003 - 231 - LRB104 04808 HLH 37059 a
distribution procedures, an allocation shall, if requested, be
made within 10 days after January 14, 1991, and in November of
1991 and each year thereafter, to each municipality that
received more than $500,000 during the preceding fiscal year,
(July 1 through June 30) whether collected by the municipality
or disbursed by the Department as required by this Section.
Within 10 days after January 14, 1991, participating
municipalities shall notify the Department in writing of their
intent to participate. In addition, for the initial
distribution, participating municipalities shall certify to
the Department the amounts collected by the municipality for
each month under its home rule occupation and service
occupation tax during the period July 1, 1989 through June 30,
1990. The allocation within 10 days after January 14, 1991,
shall be in an amount equal to the monthly average of these
amounts, excluding the 2 months of highest receipts. The
monthly average for the period of July 1, 1990 through June 30,
1991 will be determined as follows: the amounts collected by
the municipality under its home rule occupation and service
occupation tax during the period of July 1, 1990 through
September 30, 1990, plus amounts collected by the Department
and paid to such municipality through June 30, 1991, excluding
the 2 months of highest receipts. The monthly average for each
subsequent period of July 1 through June 30 shall be an amount
equal to the monthly distribution made to each such
municipality under the preceding paragraph during this period,

10400HB0910ham003 - 232 - LRB104 04808 HLH 37059 a
excluding the 2 months of highest receipts. The distribution
made in November 1991 and each year thereafter under this
paragraph and the preceding paragraph shall be reduced by the
amount allocated and disbursed under this paragraph in the
preceding period of July 1 through June 30. The Department
shall prepare and certify to the Comptroller for disbursement
the allocations made in accordance with this paragraph.
For the purpose of determining the local governmental unit
whose tax is applicable, a retail sale by a producer of coal or
other mineral mined in Illinois is a sale at retail at the
place where the coal or other mineral mined in Illinois is
extracted from the earth. This paragraph does not apply to
coal or other mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the United States Constitution as a sale
in interstate or foreign commerce.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the Constitution of the United States
may not be made the subject of taxation by this State.
An ordinance or resolution imposing or discontinuing a tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of June, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of September next following the adoption and filing.

10400HB0910ham003 - 233 - LRB104 04808 HLH 37059 a
Beginning January 1, 1992, an ordinance or resolution imposing
or discontinuing the tax hereunder or effecting a change in
the rate thereof shall be adopted and a certified copy thereof
filed with the Department on or before the first day of July,
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of October next
following such adoption and filing. Beginning January 1, 1993,
an ordinance or resolution imposing or discontinuing the tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of October, whereupon the
Department shall proceed to administer and enforce this
Section as of the first day of January next following the
adoption and filing. However, a municipality located in a
county with a population in excess of 3,000,000 that elected
to become a home rule unit at the general primary election in
1994 may adopt an ordinance or resolution imposing the tax
under this Section and file a certified copy of the ordinance
or resolution with the Department on or before July 1, 1994.
The Department shall then proceed to administer and enforce
this Section as of October 1, 1994. Beginning April 1, 1998, an
ordinance or resolution imposing or discontinuing the tax
hereunder or effecting a change in the rate thereof shall
either (i) be adopted and a certified copy thereof filed with
the Department on or before the first day of April, whereupon
the Department shall proceed to administer and enforce this

10400HB0910ham003 - 234 - LRB104 04808 HLH 37059 a
Section as of the first day of July next following the adoption
and filing; or (ii) be adopted and a certified copy thereof
filed with the Department on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce this Section as of the first day of January next
following the adoption and filing.
When certifying the amount of a monthly disbursement to a
municipality under this Section, the Department shall increase
or decrease the amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous
6 months from the time a misallocation is discovered.
Any unobligated balance remaining in the Municipal
Retailers' Occupation Tax Fund on December 31, 1989, which
fund was abolished by Public Act 85-1135, and all receipts of
municipal tax as a result of audits of liability periods prior
to January 1, 1990, shall be paid into the Local Government Tax
Fund for distribution as provided by this Section prior to the
enactment of Public Act 85-1135. All receipts of municipal tax
as a result of an assessment not arising from an audit, for
liability periods prior to January 1, 1990, shall be paid into
the Local Government Tax Fund for distribution before July 1,
1990, as provided by this Section prior to the enactment of
Public Act 85-1135; and on and after July 1, 1990, all such
receipts shall be distributed as provided in Section 6z-18 of
the State Finance Act.

10400HB0910ham003 - 235 - LRB104 04808 HLH 37059 a
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. 102-700, eff. 4-19-22; 103-592, eff. 1-1-25.)
(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, by ordinance or resolution
adopted in the manner described in Section 8-11-1.1, a tax
upon all persons engaged in the business of selling tangible
personal property, other than on an item of tangible personal
property which is titled and registered by an agency of this
State's Government, at retail in the municipality. If imposed,
the tax shall be imposed on the gross receipts from such sales
made in the course of such business. The proceeds of the tax
may be used for public infrastructure or for property tax
relief or both, as defined in Section 8-11-1.2. If the tax is
approved by referendum on or after July 14, 2010 (the
effective date of Public Act 96-1057) and before August 5,
2024 (the effective date of Public Act 103-781), the corporate
authorities of the non-home rule municipality may, until
January 1, 2031, use the proceeds of the tax for expenditure on
municipal operations, in addition to or in lieu of any

10400HB0910ham003 - 236 - LRB104 04808 HLH 37059 a
expenditure on public infrastructure or for property tax
relief. If the tax is approved by an ordinance or resolution
adopted on or after August 5, 2024 (the effective date of
Public Act 103-781), the corporate authorities of the non-home
rule municipality may, until January 1, 2031, use the proceeds
of the tax for expenditure on municipal operations, in
addition to or in lieu of any expenditure on public
infrastructure or for property tax relief. The tax imposed may
not be more than 1% and may be imposed only in 1/4% increments.
The tax may not be imposed on tangible personal property taxed
at the 1% rate under the Retailers' Occupation Tax Act (or at
the 0% rate imposed under this amendatory Act of the 102nd
General Assembly). Beginning December 1, 2019, this tax is not
imposed on sales of aviation fuel unless the tax revenue is
expended for airport-related purposes. If a municipality does
not have an airport-related purpose to which it dedicates
aviation fuel tax revenue, then aviation fuel is excluded from
the tax. Each municipality must comply with the certification
requirements for airport-related purposes under Section 2-22
of the Retailers' Occupation Tax Act. For purposes of this
Section, "airport-related purposes" has the meaning ascribed
in Section 6z-20.2 of the State Finance Act. This exclusion
for aviation fuel only applies for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the municipality. The tax imposed by a municipality
pursuant to this Section and all civil penalties that may be

10400HB0910ham003 - 237 - LRB104 04808 HLH 37059 a
assessed as an incident thereof shall be collected and
enforced by the State Department of Revenue. The certificate
of registration which is issued by the Department to a
retailer under the Retailers' Occupation Tax Act shall permit
such retailer to engage in a business which is taxable under
any ordinance or resolution enacted pursuant to this Section
without registering separately with the Department under such
ordinance or resolution or under this Section. The Department
shall have full power to administer and enforce this Section;
to collect all taxes and penalties due hereunder; to dispose
of taxes and penalties so collected in the manner hereinafter
provided, and to determine all rights to credit memoranda,
arising on account of the erroneous payment of tax or penalty
hereunder. In the administration of, and compliance with, this
Section, the Department and persons who are subject to this
Section shall have the same rights, remedies, privileges,
immunities, powers and duties, and be subject to the same
conditions, restrictions, limitations, penalties and
definitions of terms, and employ the same modes of procedure,
as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j,
2 through 2-65 (in respect to all provisions therein other
than the State rate of tax), 2c, 3 (except as to the
disposition of taxes and penalties collected, and except that
the retailer's discount is not allowed for taxes paid on
aviation fuel that are subject to the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c,

10400HB0910ham003 - 238 - LRB104 04808 HLH 37059 a
5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9,
10, 11, 12 and 13 of the Retailers' Occupation Tax Act and
Section 3-7 of the Uniform Penalty and Interest Act as fully as
if those provisions were set forth herein.
No municipality may impose a tax under this Section unless
the municipality also imposes a tax at the same rate under
Section 8-11-1.4 of this Code.
If, on January 1, 2025, a unit of local government has in
effect a tax under this Section, or if, after January 1, 2025,
a unit of local government imposes a tax under this Section,
then that tax applies to leases of tangible personal property
in effect, entered into, or renewed on or after that date in
the same manner as the tax under this Section and in accordance
with the changes made by this amendatory Act of the 103rd
General Assembly.
Persons subject to any tax imposed pursuant to the
authority granted in this Section may reimburse themselves for
their seller's tax liability hereunder by separately stating
such tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax which sellers
are required to collect under the Use Tax Act, pursuant to such
bracket schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the

10400HB0910ham003 - 239 - LRB104 04808 HLH 37059 a
amount specified, and to the person named, in such
notification from the Department. Such refund shall be paid by
the State Treasurer out of the non-home rule municipal
retailers' occupation tax fund or the Local Government
Aviation Trust Fund, as appropriate.
Except as otherwise provided, the Department shall
forthwith pay over to the State Treasurer, ex officio, as
trustee, all taxes and penalties collected hereunder for
deposit into the Non-Home Rule Municipal Retailers' Occupation
Tax Fund. Taxes and penalties collected on aviation fuel sold
on or after December 1, 2019, shall be immediately paid over by
the Department to the State Treasurer, ex officio, as trustee,
for deposit into the Local Government Aviation Trust Fund. The
Department shall only pay moneys into the Local Government
Aviation Trust Fund under this Section for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the municipality.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for
sales within a STAR bond district.
As soon as possible after the first day of each month,

10400HB0910ham003 - 240 - LRB104 04808 HLH 37059 a
beginning July 1, 2026, 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 Statewide
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 transfers transfer to the STAR Bonds
Revenue Fund, on or before the 25th day of each calendar month,
the Department shall prepare and certify to the Comptroller
the disbursement of stated sums of money to named
municipalities, the municipalities to be those from which
retailers have paid taxes or penalties hereunder to the
Department during the second preceding calendar month. The
amount to be paid to each municipality shall be the amount (not
including credit memoranda and not including taxes and
penalties collected on aviation fuel sold on or after December
1, 2019) collected hereunder during the second preceding
calendar month by the Department plus an amount the Department
determines is necessary to offset any amounts which were
erroneously paid to a different taxing body, and not including
an amount equal to the amount of refunds made during the second
preceding calendar month by the Department on behalf of such
municipality, and not including any amount which the
Department determines is necessary to offset any amounts which
were payable to a different taxing body but were erroneously

10400HB0910ham003 - 241 - LRB104 04808 HLH 37059 a
paid to the municipality, and not including any amounts that
are transferred to the STAR Bonds Revenue Fund, less 1.5% of
the remainder, which the Department shall transfer into the
Tax Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt, by the
Comptroller, of the disbursement certification to the
municipalities and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in such certification.
For the purpose of determining the local governmental unit
whose tax is applicable, a retail sale, by a producer of coal
or other mineral mined in Illinois, is a sale at retail at the
place where the coal or other mineral mined in Illinois is
extracted from the earth. This paragraph does not apply to
coal or other mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the Federal Constitution as a sale in
interstate or foreign commerce.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the constitution of the United States

10400HB0910ham003 - 242 - LRB104 04808 HLH 37059 a
may not be made the subject of taxation by this State.
When certifying the amount of a monthly disbursement to a
municipality under this Section, the Department shall increase
or decrease such amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous
6 months from the time a misallocation is discovered.
The Department of Revenue shall implement Public Act
91-649 so as to collect the tax on and after January 1, 2002.
As used in this Section, "municipal" and "municipality"
mean a city, village, or incorporated town, including an
incorporated town which has superseded a civil township.
This Section shall be known and may be cited as the
Non-Home Rule Municipal Retailers' Occupation Tax Act.
(Source: P.A. 102-700, eff. 4-19-22; 103-592, eff. 1-1-25;
103-1055, eff. 12-20-24.)
(65 ILCS 5/8-11-1.4) (from Ch. 24, par. 8-11-1.4)
Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation
Tax Act. The corporate authorities of a non-home rule
municipality may impose, by ordinance or resolution adopted in
the manner described in Section 8-11-1.1, a tax upon all
persons engaged in the municipality in the business of making
sales of service. If imposed, the tax shall be imposed on the
selling price of all tangible personal property transferred by
such servicemen, either in the form of tangible personal

10400HB0910ham003 - 243 - LRB104 04808 HLH 37059 a
property or in the form of real estate, as an incident to a
sale of service. The proceeds of the tax may be used for public
infrastructure or for property tax relief or both, as defined
in Section 8-11-1.2. If the tax is approved by referendum on or
after July 14, 2010 (the effective date of Public Act 96-1057)
and before August 5, 2024 (the effective date of Public Act
103-781), the corporate authorities of a non-home rule
municipality may, until January 1, 2031, 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. If the tax is approved by an ordinance
or resolution adopted on or after August 5, 2024 (the
effective date of Public Act 103-781), the corporate
authorities of the non-home rule municipality may, until
January 1, 2031, use the proceeds of the tax for expenditure on
municipal operations, in addition to or in lieu of any
expenditure on public infrastructure or for property tax
relief. The tax imposed may not be more than 1% and may be
imposed only in 1/4% increments. The tax may not be imposed on
tangible personal property taxed at the 1% rate under the
Service Occupation Tax Act (or at the 0% rate imposed under
this amendatory Act of the 102nd General Assembly). Beginning
December 1, 2019, this tax is not imposed on sales of aviation
fuel unless the tax revenue is expended for airport-related
purposes. If a municipality does not have an airport-related
purpose to which it dedicates aviation fuel tax revenue, then

10400HB0910ham003 - 244 - LRB104 04808 HLH 37059 a
aviation fuel is excluded from the tax. Each municipality must
comply with the certification requirements for airport-related
purposes under Section 2-22 of the Retailers' Occupation Tax
Act. For purposes of this Section, "airport-related purposes"
has the meaning ascribed in Section 6z-20.2 of the State
Finance Act. This exclusion for aviation fuel only applies for
so long as the revenue use requirements of 49 U.S.C. 47107(b)
and 49 U.S.C. 47133 are binding on the municipality. The tax
imposed by a municipality pursuant to this Section and all
civil penalties that may be assessed as an incident thereof
shall be collected and enforced by the State Department of
Revenue. The certificate of registration which is issued by
the Department to a retailer under the Retailers' Occupation
Tax Act or under the Service Occupation Tax Act shall permit
such registrant to engage in a business which is taxable under
any ordinance or resolution enacted pursuant to this Section
without registering separately with the Department under such
ordinance or resolution or under this Section. The Department
shall have full power to administer and enforce this Section;
to collect all taxes and penalties due hereunder; to dispose
of taxes and penalties so collected in the manner hereinafter
provided, and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty
hereunder. In the administration of, and compliance with, this
Section the Department and persons who are subject to this
Section shall have the same rights, remedies, privileges,

10400HB0910ham003 - 245 - LRB104 04808 HLH 37059 a
immunities, powers and duties, and be subject to the same
conditions, restrictions, limitations, penalties and
definitions of terms, and employ the same modes of procedure,
as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
respect to all provisions therein other than the State rate of
tax), 4 (except that the reference to the State shall be to the
taxing municipality), 5, 7, 8 (except that the jurisdiction to
which the tax shall be a debt to the extent indicated in that
Section 8 shall be the taxing municipality), 9 (except as to
the disposition of taxes and penalties collected, and except
that the returned merchandise credit for this municipal tax
may not be taken against any State tax, and except that the
retailer's discount is not allowed for taxes paid on aviation
fuel that are subject to the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133), 10, 11, 12 (except the
reference therein to Section 2b of the Retailers' Occupation
Tax Act), 13 (except that any reference to the State shall mean
the taxing municipality), the first paragraph of Section 15,
16, 17, 18, 19 and 20 of the Service Occupation Tax Act and
Section 3-7 of the Uniform Penalty and Interest Act, as fully
as if those provisions were set forth herein.
No municipality may impose a tax under this Section unless
the municipality also imposes a tax at the same rate under
Section 8-11-1.3 of this Code.
If, on January 1, 2025, a unit of local government has in
effect a tax under this Section, or if, after January 1, 2025,

10400HB0910ham003 - 246 - LRB104 04808 HLH 37059 a
a unit of local government imposes a tax under this Section,
then that tax applies to leases of tangible personal property
in effect, entered into, or renewed on or after that date in
the same manner as the tax under this Section and in accordance
with the changes made by this amendatory Act of the 103rd
General Assembly.
Persons subject to any tax imposed pursuant to the
authority granted in this Section may reimburse themselves for
their serviceman's tax liability hereunder by separately
stating such tax as an additional charge, which charge may be
stated in combination, in a single amount, with State tax
which servicemen are authorized to collect under the Service
Use Tax Act, pursuant to such bracket schedules as the
Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in such
notification from the Department. Such refund shall be paid by
the State Treasurer out of the municipal retailers' occupation
tax fund or the Local Government Aviation Trust Fund, as
appropriate.
Except as otherwise provided in this paragraph, the
Department shall forthwith pay over to the State Treasurer, ex
officio, as trustee, all taxes and penalties collected

10400HB0910ham003 - 247 - LRB104 04808 HLH 37059 a
hereunder for deposit into the municipal retailers' occupation
tax fund. Taxes and penalties collected on aviation fuel sold
on or after December 1, 2019, shall be immediately paid over by
the Department to the State Treasurer, ex officio, as trustee,
for deposit into the Local Government Aviation Trust Fund. The
Department shall only pay moneys into the Local Government
Aviation Trust Fund under this Section for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the municipality.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for
sales within a STAR bond district.
As soon as possible after the first day of each month,
beginning July 1, 2026, 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 Statewide
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 transfers transfer to the STAR Bonds

10400HB0910ham003 - 248 - LRB104 04808 HLH 37059 a
Revenue Fund, on or before the 25th day of each calendar month,
the Department shall prepare and certify to the Comptroller
the disbursement of stated sums of money to named
municipalities, the municipalities to be those from which
suppliers and servicemen have paid taxes or penalties
hereunder to the Department during the second preceding
calendar month. The amount to be paid to each municipality
shall be the amount (not including credit memoranda and not
including taxes and penalties collected on aviation fuel sold
on or after December 1, 2019) collected hereunder during the
second preceding calendar month by the Department, and not
including an amount equal to the amount of refunds made during
the second preceding calendar month by the Department on
behalf of such municipality, and not including any amounts
that are transferred to the STAR Bonds Revenue Fund, less 1.5%
of the remainder, which the Department shall transfer into the
Tax Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt, by the
Comptroller, of the disbursement certification to the
municipalities, the General Revenue Fund, and the Tax
Compliance and Administration Fund provided for in this
Section to be given to the Comptroller by the Department, the
Comptroller shall cause the orders to be drawn for the

10400HB0910ham003 - 249 - LRB104 04808 HLH 37059 a
respective amounts in accordance with the directions contained
in such certification.
The Department of Revenue shall implement Public Act
91-649 so as to collect the tax on and after January 1, 2002.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the constitution of the United States
may not be made the subject of taxation by this State.
As used in this Section, "municipal" or "municipality"
means or refers to a city, village or incorporated town,
including an incorporated town which has superseded a civil
township.
This Section shall be known and may be cited as the
"Non-Home Rule Municipal Service Occupation Tax Act".
(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23;
103-592, eff. 1-1-25; 103-1055, eff. 12-20-24.)
(65 ILCS 5/8-11-1.6)
Sec. 8-11-1.6. Non-home rule municipal retailers'
occupation tax; municipalities between 20,000 and 25,000. The
corporate authorities of a non-home rule municipality with a
population of more than 20,000 but less than 25,000 that has,
prior to January 1, 1987, established a Redevelopment Project
Area that has been certified as a State Sales Tax Boundary and
has issued bonds or otherwise incurred indebtedness to pay for
costs in excess of $5,000,000, which is secured in part by a

10400HB0910ham003 - 250 - LRB104 04808 HLH 37059 a
tax increment allocation fund, in accordance with the
provisions of Division 11-74.4 of this Code may, by passage of
an ordinance, impose a tax upon all persons engaged in the
business of selling tangible personal property, other than on
an item of tangible personal property that is titled and
registered by an agency of this State's Government, at retail
in the municipality. This tax may not be imposed on tangible
personal property taxed at the 1% rate under the Retailers'
Occupation Tax Act (or at the 0% rate imposed under this
amendatory Act of the 102nd General Assembly). Beginning
December 1, 2019, this tax is not imposed on sales of aviation
fuel unless the tax revenue is expended for airport-related
purposes. If a municipality does not have an airport-related
purpose to which it dedicates aviation fuel tax revenue, then
aviation fuel is excluded from the tax. Each municipality must
comply with the certification requirements for airport-related
purposes under Section 2-22 of the Retailers' Occupation Tax
Act. For purposes of this Section, "airport-related purposes"
has the meaning ascribed in Section 6z-20.2 of the State
Finance Act. This exclusion for aviation fuel only applies for
so long as the revenue use requirements of 49 U.S.C. 47107(b)
and 49 U.S.C. 47133 are binding on the municipality. If
imposed, the tax shall only be imposed in .25% increments of
the gross receipts from such sales made in the course of
business. Any tax imposed by a municipality under this Section
and all civil penalties that may be assessed as an incident

10400HB0910ham003 - 251 - LRB104 04808 HLH 37059 a
thereof shall be collected and enforced by the State
Department of Revenue. An ordinance imposing a tax hereunder
or effecting a change in the rate thereof shall be adopted and
a certified copy thereof filed with the Department on or
before the first day of October, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of January next following such adoption and filing.
The certificate of registration that is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act shall permit the retailer to engage in a business that is
taxable under any ordinance or resolution enacted under this
Section without registering separately with the Department
under the ordinance or resolution or under this Section. The
Department shall have full power to administer and enforce
this Section, to collect all taxes and penalties due
hereunder, to dispose of taxes and penalties so collected in
the manner hereinafter provided, and to determine all rights
to credit memoranda, arising on account of the erroneous
payment of tax or penalty hereunder. In the administration of,
and compliance with this Section, the Department and persons
who are subject to this Section shall have the same rights,
remedies, privileges, immunities, powers, and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, and definitions of terms, and employ the same modes
of procedure, as are prescribed in Sections 1, 1a, 1a-1, 1d,
1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions

10400HB0910ham003 - 252 - LRB104 04808 HLH 37059 a
therein other than the State rate of tax), 2c, 3 (except as to
the disposition of taxes and penalties collected, and except
that the retailer's discount is not allowed for taxes paid on
aviation fuel that are subject to the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c,
5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9,
10, 11, 12 and 13 of the Retailers' Occupation Tax Act and
Section 3-7 of the Uniform Penalty and Interest Act as fully as
if those provisions were set forth herein.
A tax may not be imposed by a municipality under this
Section unless the municipality also imposes a tax at the same
rate under Section 8-11-1.7 of this Act.
If, on January 1, 2025, a unit of local government has in
effect a tax under this Section, or if, after January 1, 2025,
a unit of local government imposes a tax under this Section,
then that tax applies to leases of tangible personal property
in effect, entered into, or renewed on or after that date in
the same manner as the tax under this Section and in accordance
with the changes made by this amendatory Act of the 103rd
General Assembly.
Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
seller's tax liability hereunder by separately stating the tax
as an additional charge, which charge may be stated in
combination, in a single amount, with State tax which sellers
are required to collect under the Use Tax Act, pursuant to such

10400HB0910ham003 - 253 - LRB104 04808 HLH 37059 a
bracket schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant, instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Non-Home Rule Municipal Retailers'
Occupation Tax Fund, which is hereby created or the Local
Government Aviation Trust Fund, as appropriate.
Except as otherwise provided in this paragraph, the
Department shall forthwith pay over to the State Treasurer, ex
officio, as trustee, all taxes and penalties collected
hereunder for deposit into the Non-Home Rule Municipal
Retailers' Occupation Tax Fund. Taxes and penalties collected
on aviation fuel sold on or after December 1, 2019, shall be
immediately paid over by the Department to the State
Treasurer, ex officio, as trustee, for deposit into the Local
Government Aviation Trust Fund. The Department shall only pay
moneys into the Local Government Aviation Trust Fund under
this Section for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
municipality.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order

10400HB0910ham003 - 254 - LRB104 04808 HLH 37059 a
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.
As soon as possible after the first day of each month,
beginning July 1, 2026, 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 Statewide
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 transfers transfer to the STAR Bonds
Revenue Fund, on or before the 25th day of each calendar month,
the Department shall prepare and certify to the Comptroller
the disbursement of stated sums of money to named
municipalities, the municipalities to be those from which
retailers have paid taxes or penalties hereunder to the
Department during the second preceding calendar month. The
amount to be paid to each municipality shall be the amount (not
including credit memoranda and not including taxes and
penalties collected on aviation fuel sold on or after December
1, 2019) collected hereunder during the second preceding
calendar month by the Department plus an amount the Department
determines is necessary to offset any amounts that were

10400HB0910ham003 - 255 - LRB104 04808 HLH 37059 a
erroneously paid to a different taxing body, and not including
an amount equal to the amount of refunds made during the second
preceding calendar month by the Department on behalf of the
municipality, and not including any amount that the Department
determines is necessary to offset any amounts that were
payable to a different taxing body but were erroneously paid
to the municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund, less 1.5% of the
remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt by the
Comptroller of the disbursement certification to the
municipalities and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in the certification.
For the purpose of determining the local governmental unit
whose tax is applicable, a retail sale by a producer of coal or
other mineral mined in Illinois is a sale at retail at the
place where the coal or other mineral mined in Illinois is
extracted from the earth. This paragraph does not apply to
coal or other mineral when it is delivered or shipped by the

10400HB0910ham003 - 256 - LRB104 04808 HLH 37059 a
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the federal Constitution as a sale in
interstate or foreign commerce.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the constitution of the United States
may not be made the subject of taxation by this State.
When certifying the amount of a monthly disbursement to a
municipality under this Section, the Department shall increase
or decrease the amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous
6 months from the time a misallocation is discovered.
As used in this Section, "municipal" and "municipality"
means a city, village, or incorporated town, including an
incorporated town that has superseded a civil township.
(Source: P.A. 102-700, eff. 4-19-22; 103-592, eff. 1-1-25.)
(65 ILCS 5/8-11-1.7)
Sec. 8-11-1.7. Non-home rule municipal service occupation
tax; municipalities between 20,000 and 25,000. The corporate
authorities of a non-home rule municipality with a population
of more than 20,000 but less than 25,000 as determined by the
last preceding decennial census that has, prior to January 1,
1987, established a Redevelopment Project Area that has been
certified as a State Sales Tax Boundary and has issued bonds or

10400HB0910ham003 - 257 - LRB104 04808 HLH 37059 a
otherwise incurred indebtedness to pay for costs in excess of
$5,000,000, which is secured in part by a tax increment
allocation fund, in accordance with the provisions of Division
11-74.4 of this Code may, by passage of an ordinance, impose a
tax upon all persons engaged in the municipality in the
business of making sales of service. If imposed, the tax shall
only be imposed in .25% increments of the selling price of all
tangible personal property transferred by such servicemen
either in the form of tangible personal property or in the form
of real estate as an incident to a sale of service. This tax
may not be imposed on tangible personal property taxed at the
1% rate under the Service Occupation Tax Act (or at the 0% rate
imposed under this amendatory Act of the 102nd General
Assembly). Beginning December 1, 2019, this tax is not imposed
on sales of aviation fuel unless the tax revenue is expended
for airport-related purposes. If a municipality does not have
an airport-related purpose to which it dedicates aviation fuel
tax revenue, then aviation fuel is excluded from the tax. Each
municipality must comply with the certification requirements
for airport-related purposes under Section 2-22 of the
Retailers' Occupation Tax Act. For purposes of this Section,
"airport-related purposes" has the meaning ascribed in Section
6z-20.2 of the State Finance Act. This exclusion for aviation
fuel only applies for so long as the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
municipality. The tax imposed by a municipality under this

10400HB0910ham003 - 258 - LRB104 04808 HLH 37059 a
Section and all civil penalties that may be assessed as an
incident thereof shall be collected and enforced by the State
Department of Revenue. An ordinance imposing a tax hereunder
or effecting a change in the rate thereof shall be adopted and
a certified copy thereof filed with the Department on or
before the first day of October, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of January next following such adoption and filing.
The certificate of registration that is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act or under the Service Occupation Tax Act shall permit the
registrant to engage in a business that is taxable under any
ordinance or resolution enacted under this Section without
registering separately with the Department under the ordinance
or resolution or under this Section. The Department shall have
full power to administer and enforce this Section, to collect
all taxes and penalties due hereunder, to dispose of taxes and
penalties so collected in a manner hereinafter provided, and
to determine all rights to credit memoranda arising on account
of the erroneous payment of tax or penalty hereunder. In the
administration of and compliance with this Section, the
Department and persons who are subject to this Section shall
have the same rights, remedies, privileges, immunities,
powers, and duties, and be subject to the same conditions,
restrictions, limitations, penalties and definitions of terms,
and employ the same modes of procedure, as are prescribed in

10400HB0910ham003 - 259 - LRB104 04808 HLH 37059 a
Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to all
provisions therein other than the State rate of tax), 4
(except that the reference to the State shall be to the taxing
municipality), 5, 7, 8 (except that the jurisdiction to which
the tax shall be a debt to the extent indicated in that Section
8 shall be the taxing municipality), 9 (except as to the
disposition of taxes and penalties collected, and except that
the returned merchandise credit for this municipal tax may not
be taken against any State tax, and except that the retailer's
discount is not allowed for taxes paid on aviation fuel that
are subject to the revenue use requirements of 49 U.S.C.
47107(b) and 49 U.S.C. 47133), 10, 11, 12, (except the
reference therein to Section 2b of the Retailers' Occupation
Tax Act), 13 (except that any reference to the State shall mean
the taxing municipality), the first paragraph of Sections 15,
16, 17, 18, 19, and 20 of the Service Occupation Tax Act and
Section 3-7 of the Uniform Penalty and Interest Act, as fully
as if those provisions were set forth herein.
A tax may not be imposed by a municipality under this
Section unless the municipality also imposes a tax at the same
rate under Section 8-11-1.6 of this Act.
If, on January 1, 2025, a unit of local government has in
effect a tax under this Section, or if, after January 1, 2025,
a unit of local government imposes a tax under this Section,
then that tax applies to leases of tangible personal property
in effect, entered into, or renewed on or after that date in

10400HB0910ham003 - 260 - LRB104 04808 HLH 37059 a
the same manner as the tax under this Section and in accordance
with the changes made by this amendatory Act of the 103rd
General Assembly.
Persons Person subject to any tax imposed under the
authority granted in this Section may reimburse themselves for
their servicemen's tax liability hereunder by separately
stating the tax as an additional charge, which charge may be
stated in combination, in a single amount, with State tax that
servicemen are authorized to collect under the Service Use Tax
Act, under such bracket schedules as the Department may
prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing 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. The refund shall be paid by
the State Treasurer out of the Non-Home Rule Municipal
Retailers' Occupation Tax Fund or the Local Government
Aviation Trust Fund, as appropriate.
Except as otherwise provided in this paragraph, the
Department shall forthwith pay over to the State Treasurer, ex
officio, as trustee, all taxes and penalties collected
hereunder for deposit into the Non-Home Rule Municipal
Retailers' Occupation Tax Fund. Taxes and penalties collected
on aviation fuel sold on or after December 1, 2019, shall be

10400HB0910ham003 - 261 - LRB104 04808 HLH 37059 a
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.
As soon as possible after the first day of each month,
beginning July 1, 2026, 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 Statewide
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 transfers 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

10400HB0910ham003 - 262 - LRB104 04808 HLH 37059 a
the disbursement of stated sums of money to named
municipalities, the municipalities to be those from which
suppliers and servicemen have paid taxes or penalties
hereunder to the Department during the second preceding
calendar month. The amount to be paid to each municipality
shall be the amount (not including credit memoranda and not
including taxes and penalties collected on aviation fuel sold
on or after December 1, 2019) collected hereunder during the
second preceding calendar month by the Department, and not
including an amount equal to the amount of refunds made during
the second preceding calendar month by the Department on
behalf of such municipality, and not including any amounts
that are transferred to the STAR Bonds Revenue Fund, less 1.5%
of the remainder, which the Department shall transfer into the
Tax Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt by the
Comptroller of the disbursement certification to the
municipalities, the Tax Compliance and Administration Fund,
and the General Revenue Fund, provided for in this Section to
be given to the Comptroller by the Department, the Comptroller
shall cause the orders to be drawn for the respective amounts
in accordance with the directions contained in the
certification.

10400HB0910ham003 - 263 - LRB104 04808 HLH 37059 a
When certifying the amount of a monthly disbursement to a
municipality under this Section, the Department shall increase
or decrease the amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous
6 months from the time a misallocation is discovered.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the constitution of the United States
may not be made the subject of taxation by this State.
(Source: P.A. 102-700, eff. 4-19-22; 103-592, eff. 1-1-25.)
(65 ILCS 5/8-11-5) (from Ch. 24, par. 8-11-5)
Sec. 8-11-5. Home Rule Municipal Service Occupation Tax
Act. The corporate authorities of a home rule municipality may
impose a tax upon all persons engaged, in such municipality,
in the business of making sales of service at the same rate of
tax imposed pursuant to Section 8-11-1, of the selling price
of all tangible personal property transferred by such
servicemen either in the form of tangible personal property or
in the form of real estate as an incident to a sale of service.
If imposed, such tax shall only be imposed in 1/4% increments.
On and after September 1, 1991, this additional tax may not be
imposed on tangible personal property taxed at the 1% rate
under the Service Occupation Tax Act (or at the 0% rate imposed
under this amendatory Act of the 102nd General Assembly).

10400HB0910ham003 - 264 - LRB104 04808 HLH 37059 a
Beginning December 1, 2019, this tax may not be 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 shall be excluded from 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 exception
for aviation fuel only applies for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State. The changes made to this Section by this
amendatory Act of the 101st General Assembly are a denial and
limitation of home rule powers and functions under subsection
(g) of Section 6 of Article VII of the Illinois Constitution.
The tax imposed by a home rule municipality pursuant to this
Section and all civil penalties that may be assessed as an
incident thereof shall be collected and enforced by the State
Department of Revenue. The certificate of registration which
is issued by the Department to a retailer under the Retailers'
Occupation Tax Act or under the Service Occupation Tax Act
shall permit such registrant to engage in a business which is
taxable under any ordinance or resolution enacted pursuant to
this Section without registering separately with the
Department under such ordinance or resolution or under this

10400HB0910ham003 - 265 - LRB104 04808 HLH 37059 a
Section. The Department shall have full power to administer
and enforce this Section; to collect all taxes and penalties
due hereunder; to dispose of taxes and penalties so collected
in the manner hereinafter provided, and to determine all
rights to credit memoranda arising on account of the erroneous
payment of tax or penalty hereunder. In the administration of,
and compliance with, this Section the Department and persons
who are subject to this Section shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties and definitions of terms, and employ the same modes
of procedure, as are prescribed in Sections 1a-1, 2, 2a, 3
through 3-50 (in respect to all provisions therein other than
the State rate of tax), 4 (except that the reference to the
State shall be to the taxing municipality), 5, 7, 8 (except
that the jurisdiction to which the tax shall be a debt to the
extent indicated in that Section 8 shall be the taxing
municipality), 9 (except as to the disposition of taxes and
penalties collected, and except that the returned merchandise
credit for this municipal tax may not be taken against any
State tax, and except that the retailer's discount is not
allowed for taxes paid on aviation fuel that are subject to the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133), 10, 11, 12 (except the reference therein to Section 2b
of the Retailers' Occupation Tax Act), 13 (except that any
reference to the State shall mean the taxing municipality),

10400HB0910ham003 - 266 - LRB104 04808 HLH 37059 a
the first paragraph of Section 15, 16, 17 (except that credit
memoranda issued hereunder may not be used to discharge any
State tax liability), 18, 19 and 20 of the Service Occupation
Tax Act and Section 3-7 of the Uniform Penalty and Interest
Act, as fully as if those provisions were set forth herein.
No tax may be imposed by a home rule municipality pursuant
to this Section unless such municipality also imposes a tax at
the same rate pursuant to Section 8-11-1 of this Act.
Persons subject to any tax imposed pursuant to the
authority granted in this Section may reimburse themselves for
their serviceman's tax liability hereunder by separately
stating such tax as an additional charge, which charge may be
stated in combination, in a single amount, with State tax
which servicemen are authorized to collect under the Service
Use Tax Act, pursuant to such bracket schedules as the
Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in such
notification from the Department. Such refund shall be paid by
the State Treasurer out of the home rule municipal retailers'
occupation tax fund or the Local Government Aviation Trust
Fund, as appropriate.
Except as otherwise provided in this paragraph, the

10400HB0910ham003 - 267 - LRB104 04808 HLH 37059 a
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 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.
As soon as possible after the first day of each month,
beginning July 1, 2026, 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 Statewide
Innovation Development and Economy Act, collected under this
Section during the second preceding calendar month for sales

10400HB0910ham003 - 268 - LRB104 04808 HLH 37059 a
within a STAR bond district.
After the monthly transfers transfer to the STAR Bonds
Revenue Fund, on or before the 25th day of each calendar month,
the Department shall prepare and certify to the Comptroller
the disbursement of stated sums of money to named
municipalities, the municipalities to be those from which
suppliers and servicemen have paid taxes or penalties
hereunder to the Department during the second preceding
calendar month. The amount to be paid to each municipality
shall be the amount (not including credit memoranda and not
including taxes and penalties collected on aviation fuel sold
on or after December 1, 2019) collected hereunder during the
second preceding calendar month by the Department, and not
including an amount equal to the amount of refunds made during
the second preceding calendar month by the Department on
behalf of such municipality, and not including any amounts
that are transferred to the STAR Bonds Revenue Fund, less 1.5%
of the remainder, which the Department shall transfer into the
Tax Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt, by the
Comptroller, of the disbursement certification to the
municipalities and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by

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the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in such certification.
In addition to the disbursement required by the preceding
paragraph 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. Monthly
average for the period of July 1, 1990 through June 30, 1991
will be determined as follows: the amounts collected by the
municipality under its home rule occupation and service
occupation tax during the period of July 1, 1990 through
September 30, 1990, plus amounts collected by the Department

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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.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the constitution of the United States
may not be made the subject of taxation by this State.
An ordinance or resolution imposing or discontinuing a tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of June, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of September next following 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

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day of July, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of
October next following such adoption and filing. Beginning
January 1, 1993, an ordinance or resolution imposing or
discontinuing the tax hereunder or effecting a change in the
rate thereof shall be adopted and a certified copy thereof
filed with the Department on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce this Section as of the first day of January next
following such adoption and filing. However, a municipality
located in a county with a population in excess of 3,000,000
that elected to become a home rule unit at the general primary
election in 1994 may adopt an ordinance or resolution imposing
the tax under this Section and file a certified copy of the
ordinance or resolution with the Department on or before July
1, 1994. The Department shall then proceed to administer and
enforce this Section as of October 1, 1994. Beginning April 1,
1998, an ordinance or resolution imposing or discontinuing the
tax hereunder or effecting a change in the rate thereof shall
either (i) be adopted and a certified copy thereof filed with
the Department on or before the first day of April, whereupon
the Department shall proceed to administer and enforce this
Section as of the first day of July next following the adoption
and filing; or (ii) be adopted and a certified copy thereof
filed with the Department on or before the first day of
October, whereupon the Department shall proceed to administer

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and enforce this Section as of the first day of January next
following the adoption and filing.
Any unobligated balance remaining in the Municipal
Retailers' Occupation Tax Fund on December 31, 1989, which
fund was abolished by Public Act 85-1135, and all receipts of
municipal tax as a result of audits of liability periods prior
to January 1, 1990, shall be paid into the Local Government Tax
Fund, for distribution as provided by this Section prior to
the enactment of Public Act 85-1135. All receipts of municipal
tax as a result of an assessment not arising from an audit, for
liability periods prior to January 1, 1990, shall be paid into
the Local Government Tax Fund for distribution before July 1,
1990, as provided by this Section prior to the enactment of
Public Act 85-1135, and on and after July 1, 1990, all such
receipts shall be distributed as provided in Section 6z-18 of
the State Finance Act.
As used in this Section, "municipal" and "municipality"
means a city, village or incorporated town, including an
incorporated town which has superseded a civil township.
This Section shall be known and may be cited as the Home
Rule Municipal Service 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 5/8-11-23)
Sec. 8-11-23. Municipal Cannabis Retailers' Occupation Tax

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Law.
(a) This Section may be referred to as the Municipal
Cannabis Retailers' Occupation Tax Law. The corporate
authorities of any municipality may, by ordinance, impose a
tax upon all persons engaged in the business of selling
cannabis, other than cannabis purchased under the
Compassionate Use of Medical Cannabis Program Act, at retail
in the municipality on the gross receipts from these sales
made in the course of that business. If imposed, the tax may
not exceed 3% of the gross receipts from these sales and shall
only be imposed in 1/4% increments. The tax imposed under this
Section and all civil penalties that may be assessed as an
incident of the tax shall be collected and enforced by the
Department of Revenue. The Department of Revenue 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 under this Section.
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

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(in respect to all provisions therein other than the State
rate of tax), 2a, 2b, 2c, 2i, 3 (except as to the disposition
of taxes and penalties collected), 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 fully
as if those provisions were set forth herein.
(b) 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 any State tax that
sellers are required to collect.
(c) Whenever the Department of Revenue determines that a
refund should be made under this Section to a claimant instead
of issuing a credit memorandum, the Department of Revenue
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 of Revenue.
(d) Except as otherwise provided in this Section, the The
Department of Revenue shall immediately pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties
collected hereunder for deposit into the Local Cannabis
Retailers' Occupation Tax Trust Fund.
As soon as possible after the first day of each month,
beginning July 1, 2026, upon certification of the Department

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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 Statewide
Innovation Development and Economy Act, collected under this
Section during the second preceding calendar month for sales
within a STAR bond district.
(e) After the monthly transfer to the STAR Bonds Revenue
Fund, on On or before the 25th day of each calendar month, the
Department of Revenue shall prepare and certify to the
Comptroller the amount of money to be disbursed from the Local
Cannabis Retailers' Occupation Tax Trust Fund to
municipalities from which retailers have paid taxes or
penalties under this Section during the second preceding
calendar month. The amount to be paid to each municipality
shall be the amount (not including credit memoranda) collected
under this Section from sales made in the municipality during
the second preceding calendar month, plus an amount the
Department of Revenue 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,

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less 1.5% of the remainder, which the Department shall
transfer into the Tax Compliance and Administration Fund. The
Department, at the time of each monthly disbursement to the
municipalities, shall prepare and certify to the State
Comptroller the amount to be transferred into the Tax
Compliance and Administration Fund under this Section. Within
10 days after receipt by the Comptroller of the disbursement
certification to the municipalities and the Tax Compliance and
Administration Fund provided for in this Section to be given
to the Comptroller by the Department, the Comptroller shall
cause the orders to be drawn for the respective amounts in
accordance with the directions contained in the certification.
(f) An ordinance or resolution imposing or discontinuing a
tax under this Section or effecting a change in the rate
thereof that is adopted on or after June 25, 2019 (the
effective date of Public Act 101-27) and for which a certified
copy is filed with the Department on or before April 1, 2020
shall be administered and enforced by the Department beginning
on July 1, 2020. For ordinances filed with the Department
after April 1, 2020, an ordinance or resolution imposing or
discontinuing a tax under this Section or effecting a change
in the rate thereof shall either (i) be adopted and a certified
copy thereof filed with the Department on or before the first
day of April, whereupon the Department 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

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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.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
(65 ILCS 5/8-11-24)
Sec. 8-11-24. Municipal Grocery Occupation Tax Law.
(a) The corporate authorities of any municipality may, by
ordinance or resolution that takes effect on or after January
1, 2026, impose a tax upon all persons engaged in the business
of selling groceries at retail in the municipality on the
gross receipts from those sales made in the course of that
business. If imposed, the tax shall be at the rate of 1% of the
gross receipts from these sales.
The tax imposed by a municipality under this subsection
and all civil penalties that may be assessed as an incident of
the tax shall be collected and enforced by the Department. The
certificate of registration that is issued by the Department
to a retailer under the Retailers' Occupation Tax Act shall
permit the retailer to engage in a business that is taxable
under any ordinance or resolution enacted under this
subsection without registering separately with the Department
under that ordinance or resolution or under this subsection.
The Department shall have full power to administer and
enforce this subsection; to collect all taxes and penalties

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due under this subsection; to dispose of taxes and penalties
so collected in the manner provided in this Section and under
rules adopted by the Department; and to determine all rights
to credit memoranda arising on account of the erroneous
payment of tax or penalty under this subsection.
In the administration of, and compliance with, this
subsection, the Department and persons who are subject to this
subsection shall have the same rights, remedies, privileges,
immunities, powers, and duties, and be subject to the same
conditions, restrictions, limitations, penalties and
definitions of terms, and employ the same modes of procedure,
as are prescribed in Sections 1, 2 through 2-65 (in respect to
all provisions therein other than the State rate of tax and
other than the exemption for food for human consumption that
is to be consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, candy, and food that has been
prepared for immediate consumption), which is authorized to be
taxed as provided in this subsection), 2c, 3 (except as to the
disposition of taxes and penalties collected), 4, 5, 5a, 5b,
5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11,
11a, 12 and 13 of the Retailers' Occupation Tax Act and all of
the Uniform Penalty and Interest Act, as fully as if those
provisions were set forth in this Section.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their

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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.
(b) If a tax has been imposed under subsection (a), then a
service occupation tax must also be imposed at the same rate
upon all persons engaged, in the municipality, in the business
of making sales of service, who, as an incident to making those
sales of service, transfer groceries, as defined in this
Section, 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. The certificate of
registration that is issued by the Department to a retailer
under the Retailers' Occupation Tax Act or the Service
Occupation Tax Act shall permit the registrant to engage in a
business that is taxable under any ordinance or resolution
enacted pursuant to this subsection without registering
separately with the Department under the ordinance or
resolution or under this subsection.
The Department shall have full power to administer and
enforce this subsection, to collect all taxes and penalties
due under this subsection, to dispose of taxes and penalties
so collected in the manner provided in this Section and under
rules adopted by the Department, and to determine all rights

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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 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 set forth in Sections 2, 2c, 3 through 3-50 (in respect
to all provisions contained in those Sections other than (i)
the State rate of tax; (ii) the exemption for food for human
consumption that is to be consumed off the premises where it is
sold (other than alcoholic beverages, food consisting of or
infused with adult use cannabis, soft drinks, candy, and food
that has been prepared for immediate consumption), which is
authorized to be taxed as provided in this subsection; and
(iii) the exemption for food prepared for immediate
consumption and transferred incident to a sale of service
subject to the Service Occupation Tax Act or the Service Use
Tax Act by an entity licensed under the Hospital Licensing
Act, the Nursing Home Care Act, the Assisted Living and Shared
Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
Specialized Mental Health Rehabilitation Act of 2013, or the
Child Care Act of 1969, or an entity that holds a permit issued
pursuant to the Life Care Facilities Act, which is authorized
to be taxed as provided in this subsection), 4, 5, 7, 8, 9

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(except as to the disposition of taxes and penalties
collected), 10, 11, 12, 13, 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 in this Section.
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 Department shall immediately pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties
collected under this Section. Those taxes and penalties shall
be deposited into the Municipal Grocery Tax Trust Fund, a
trust fund created in the State treasury. Except as otherwise
provided in this Section, moneys in the Municipal Grocery Tax
Trust Fund shall be used to make payments to municipalities
and for the payment of refunds under this Section.
Moneys deposited into the Municipal Grocery Tax Trust Fund
under this Section are not subject to appropriation and shall
be used as provided in this Section. All deposits into the
Municipal Grocery Tax Trust Fund shall be held in the
Municipal Grocery Tax Trust Fund by the State Treasurer, ex
officio, as trustee separate and apart from all public moneys

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or funds of this State.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Municipal Grocery Tax Trust Fund.
(d) As soon as possible after the first day of each month,
upon certification of the Department, the Comptroller shall
order transferred, and the Treasurer shall transfer, to the
STAR Bonds Revenue Fund the local sales tax increment, if any,
as defined in the Innovation Development and Economy Act,
collected under this Section.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred, and the Treasurer shall transfer, to
the STAR Bonds Revenue Fund the local sales tax increment, as
defined in the Statewide 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 transfers transfer to the STAR Bonds
Revenue Fund, if any, on or before the 25th day of each
calendar month, the Department shall prepare and certify to
the Comptroller the disbursement of stated sums of money to
named municipalities, the municipalities to be those from

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which retailers have paid taxes or penalties under this
Section to the Department during the second preceding calendar
month. The amount to be paid to each municipality shall be the
amount (not including credit memoranda) collected under this
Section during the second preceding calendar month by the
Department plus an amount the Department determines is
necessary to offset any amounts that were erroneously paid to
a different taxing body, and not including an amount equal to
the amount of refunds made during the second preceding
calendar month by the Department on behalf of such
municipality, and not including any amount that the Department
determines is necessary to offset any amounts that were
payable to a different taxing body but were erroneously paid
to the municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund. Within 10 days
after receipt by the Comptroller of the disbursement
certification to the municipalities provided for in this
Section to be given to the Comptroller by the Department, the
Comptroller shall cause the orders to be drawn for the amounts
in accordance with the directions contained in the
certification.
(e) 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.

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(f) Except as otherwise provided in this subsection, 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.
(g) 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.
(h) As used in this Section, "Department" means the
Department of Revenue.
For purposes of the tax authorized to be imposed under
subsection (a), "groceries" has the same meaning as "food for
human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, food
consisting of or infused with adult use cannabis, soft drinks,
candy, and food that has been prepared for immediate

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consumption)", as further defined in Section 2-10 of the
Retailers' Occupation Tax Act.
For purposes of the tax authorized to be imposed under
subsection (b), "groceries" has the same meaning as "food for
human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, food
consisting of or infused with adult use cannabis, soft drinks,
candy, and food that has been prepared for immediate
consumption)", as further defined in Section 3-10 of the
Service Occupation Tax Act. For purposes of the tax authorized
to be imposed under subsection (b), "groceries" also means
food prepared for immediate consumption and transferred
incident to a sale of service subject to the Service
Occupation Tax Act or the Service Use Tax Act by an entity
licensed under the Hospital Licensing Act, the Nursing Home
Care Act, the Assisted Living and Shared Housing Act, the
ID/DD Community Care Act, the MC/DD Act, the Specialized
Mental Health Rehabilitation Act of 2013, or the Child Care
Act of 1969, or an entity that holds a permit issued pursuant
to the Life Care Facilities Act.
(i) This Section may be referred to as the Municipal
Grocery Occupation Tax Law.
(Source: P.A. 103-781, eff. 8-5-24; 104-6, eff. 1-1-26.)
(65 ILCS 5/11-74.3-6)
Sec. 11-74.3-6. Business district revenue and obligations;

10400HB0910ham003 - 286 - LRB104 04808 HLH 37059 a
business district tax allocation fund.
(a) If the corporate authorities of a municipality have
approved a business district plan, have designated a business
district, and have elected to impose a tax by ordinance
pursuant to subsection (10) or (11) of Section 11-74.3-3, then
each year after the date of the approval of the ordinance but
terminating upon the date all business district project costs
and all obligations paying or reimbursing business district
project costs, if any, have been paid, but in no event later
than the dissolution date, all amounts generated by the
retailers' occupation tax and service occupation tax shall be
collected and the tax shall be enforced by the Department of
Revenue in the same manner as all retailers' occupation taxes
and service occupation taxes imposed in the municipality
imposing the tax and all amounts generated by the hotel
operators' occupation tax shall be collected and the tax shall
be enforced by the municipality in the same manner as all hotel
operators' occupation taxes imposed in the municipality
imposing the tax. The corporate authorities of the
municipality shall deposit the proceeds of the taxes imposed
under subsections (10) and (11) of Section 11-74.3-3 into a
special fund of the municipality called the "[Name of]
Business District Tax Allocation Fund" for the purpose of
paying or reimbursing business district project costs and
obligations incurred in the payment of those costs.
(b) The corporate authorities of a municipality that has

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designated a business district under this Law may, by
ordinance, impose a Business District Retailers' Occupation
Tax upon all persons engaged in the business of selling
tangible personal property, other than an item of tangible
personal property titled or registered with an agency of this
State's government, at retail in the business district at a
rate not to exceed 1% of the gross receipts from the sales made
in the course of such business, to be imposed only in 0.25%
increments. The tax may not be imposed on tangible personal
property taxed at the rate of 1% under the Retailers'
Occupation Tax Act (or at the 0% rate imposed under this
amendatory Act of the 102nd General Assembly). Beginning
December 1, 2019 and through December 31, 2020, this tax is not
imposed on sales of aviation fuel unless the tax revenue is
expended for airport-related purposes. If the District does
not have an airport-related purpose to which it dedicates
aviation fuel tax revenue, then aviation fuel is excluded from
the tax. Each municipality must comply with the certification
requirements for airport-related purposes under Section 2-22
of the Retailers' Occupation Tax Act. For purposes of this
Section, "airport-related purposes" has the meaning ascribed
in Section 6z-20.2 of the State Finance Act. Beginning January
1, 2021, this tax is not imposed on sales of aviation fuel for
so long as the revenue use requirements of 49 U.S.C. 47107(b)
and 49 U.S.C. 47133 are binding on the District.
The tax imposed under this subsection and all civil

10400HB0910ham003 - 288 - LRB104 04808 HLH 37059 a
penalties that may be assessed as an incident thereof shall be
collected and enforced by the Department of Revenue. The
certificate of registration that is issued by the Department
to a retailer under the Retailers' Occupation Tax Act shall
permit the retailer to engage in a business that is taxable
under any ordinance or resolution enacted pursuant to this
subsection without registering separately with the Department
under such ordinance or resolution or under this subsection.
The Department of Revenue shall have full power to administer
and enforce this subsection; to collect all taxes and
penalties due under this subsection in the manner hereinafter
provided; and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty
under this subsection. In the administration of, and
compliance with, this subsection, the Department and persons
who are subject to this subsection shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions, and definitions of terms
and employ the same modes of procedure, as are prescribed in
Sections 1, 1a through 1o, 2 through 2-65 (in respect to all
provisions therein other than the State rate of tax), 2c
through 2h, 3 (except as to the disposition of taxes and
penalties collected, and except that the retailer's discount
is not allowed for taxes paid on aviation fuel that are subject
to the revenue use requirements of 49 U.S.C. 47107(b) and 49

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U.S.C. 47133), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6,
6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13, and 14 of the Retailers'
Occupation Tax Act and all provisions of the Uniform Penalty
and Interest Act, as fully as if those provisions were set
forth herein.
Persons subject to any tax imposed under this subsection
may reimburse themselves for their seller's tax liability
under this subsection by separately stating the tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State taxes that sellers are required
to collect under the Use Tax Act, in accordance with such
bracket schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the business district retailers' occupation
tax fund or the Local Government Aviation Trust Fund, as
appropriate.
Except as otherwise provided in this paragraph, the
Department shall immediately pay over to the State Treasurer,
ex officio, as trustee, all taxes, penalties, and interest
collected under this subsection for deposit into the business
district retailers' occupation tax fund. Taxes and penalties

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collected on aviation fuel sold on or after December 1, 2019,
shall be immediately paid over by the Department to the State
Treasurer, ex officio, as trustee, for deposit into the Local
Government Aviation Trust Fund. The Department shall only pay
moneys into the Local Government Aviation Trust Fund under
this Section for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
District.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this subsection during the second preceding calendar month for
sales within a STAR bond district.
As soon as possible after the first day of each month,
beginning July 1, 2026, 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 Statewide
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 transfers transfer to the STAR Bonds
Revenue Fund, on or before the 25th day of each calendar month,

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the Department shall prepare and certify to the Comptroller
the disbursement of stated sums of money to named
municipalities from the business district retailers'
occupation tax fund, the municipalities to be those from which
retailers have paid taxes or penalties under this subsection
to the Department during the second preceding calendar month.
The amount to be paid to each municipality shall be the amount
(not including credit memoranda and not including taxes and
penalties collected on aviation fuel sold on or after December
1, 2019) collected under this subsection during the second
preceding calendar month by the Department plus an amount the
Department determines is necessary to offset any amounts that
were erroneously paid to a different taxing body, and not
including an amount equal to the amount of refunds made during
the second preceding calendar month by the Department, less 2%
of that amount (except the amount collected on aviation fuel
sold on or after December 1, 2019), which shall be deposited
into the Tax Compliance and Administration Fund and shall be
used by the Department, subject to appropriation, to cover the
costs of the Department in administering and enforcing the
provisions of this subsection, on behalf of such municipality,
and not including any amount that the Department determines is
necessary to offset any amounts that were payable to a
different taxing body but were erroneously paid to the
municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund. Within 10 days

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

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

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

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

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

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aviation fuel that are subject to the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10, 11, 12 (except
the reference therein to Section 2b of the Retailers'
Occupation Tax Act), 13 (except that any reference to the
State shall mean the municipality), the first paragraph of
Section 15, and Sections 16, 17, 18, 19 and 20 of the Service
Occupation Tax Act and all provisions of the Uniform Penalty
and Interest Act, as fully as if those provisions were set
forth herein.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability hereunder by separately stating the
tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax that
servicemen are authorized to collect under the Service Use Tax
Act, in accordance with such bracket schedules as the
Department may prescribe.
Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in such
notification from the Department. Such refund shall be paid by
the State Treasurer out of the business district retailers'
occupation tax fund or the Local Government Aviation Trust
Fund, as appropriate.

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Except as otherwise provided in this paragraph, the
Department shall forthwith pay over to the State Treasurer, ex
officio ex-officio, as trustee, all taxes, penalties, and
interest collected under this subsection for deposit into the
business district retailers' occupation tax fund. Taxes and
penalties collected on aviation fuel sold on or after December
1, 2019, shall be immediately paid over by the Department to
the State Treasurer, ex officio, as trustee, for deposit into
the Local Government Aviation Trust Fund. The Department shall
only pay moneys into the Local Government Aviation Trust Fund
under this Section for so long as the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
District.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this subsection during the second preceding calendar month for
sales within a STAR bond district.
As soon as possible after the first day of each month,
beginning July 1, 2026, 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 Statewide

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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 transfers transfer to the STAR Bonds
Revenue Fund, on or before the 25th day of each calendar month,
the Department shall prepare and certify to the Comptroller
the disbursement of stated sums of money to named
municipalities from the business district retailers'
occupation tax fund, the municipalities to be those from which
suppliers and servicemen have paid taxes or penalties under
this subsection to the Department during the second preceding
calendar month. The amount to be paid to each municipality
shall be the amount (not including credit memoranda and not
including taxes and penalties collected on aviation fuel sold
on or after December 1, 2019) collected under this subsection
during the second preceding calendar month by the Department,
less 2% of that amount (except the amount collected on
aviation fuel sold on or after December 1, 2019), which shall
be deposited into the Tax Compliance and Administration Fund
and shall be used by the Department, subject to appropriation,
to cover the costs of the Department in administering and
enforcing the provisions of this subsection, and not including
an amount equal to the amount of refunds made during the second
preceding calendar month by the Department on behalf of such
municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund. Within 10 days

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

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

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municipality.
A municipality that imposes the tax under this subsection
must submit to the Department of Revenue any other information
as the Department may require for the administration and
enforcement of the tax.
Nothing in this subsection shall be construed to authorize
the municipality to impose a tax upon the privilege of
engaging in any business which under the Constitution of the
United States may not be made the subject of taxation by the
State.
If a tax is imposed under this subsection (c), a tax shall
also be imposed under subsection (b) of this Section.
(c-5) If, on January 1, 2025, a unit of local government
has in effect a tax under this Section, or if, after January 1,
2025, a unit of local government imposes a tax under this
Section, then that tax applies to leases of tangible personal
property in effect, entered into, or renewed on or after that
date in the same manner as the tax under this Section and in
accordance with the changes made by this amendatory Act of the
103rd General Assembly.
(d) By ordinance, a municipality that has designated a
business district under this Law may impose an occupation tax
upon all persons engaged in the business district in the
business of renting, leasing, or letting rooms in a hotel, as
defined in the Hotel Operators' Occupation Tax Act, at a rate
not to exceed 1% of the gross rental receipts from the renting,

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leasing, or letting of hotel rooms within the business
district, to be imposed only in 0.25% increments, excluding,
however, from gross rental receipts the proceeds of renting,
leasing, or letting to permanent residents of a hotel, as
defined in the Hotel Operators' Occupation Tax Act, and
proceeds from the tax imposed under subsection (c) of Section
13 of the Metropolitan Pier and Exposition Authority Act.
The tax imposed by the municipality under this subsection
and all civil penalties that may be assessed as an incident to
that tax shall be collected and enforced by the municipality
imposing the tax. The municipality shall have full power to
administer and enforce this subsection, to collect all taxes
and penalties due under this subsection, to dispose of taxes
and penalties so collected in the manner provided in this
subsection, and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty
under this subsection. In the administration of and compliance
with this subsection, the municipality and persons who are
subject to this subsection shall have the same rights,
remedies, privileges, immunities, powers, and duties, shall be
subject to the same conditions, restrictions, limitations,
penalties, and definitions of terms, and shall employ the same
modes of procedure as are employed with respect to a tax
adopted by the municipality under Section 8-3-14 of this Code.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their

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tax liability for that tax by separately stating that tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State taxes imposed under the Hotel
Operators' Occupation Tax Act, and with any other tax.
Nothing in this subsection shall be construed to authorize
a municipality to impose a tax upon the privilege of engaging
in any business which under the Constitution of the United
States may not be made the subject of taxation by this State.
The proceeds of the tax imposed under this subsection
shall be deposited into the Business District Tax Allocation
Fund.
(e) Obligations secured by the Business District Tax
Allocation Fund may be issued to provide for the payment or
reimbursement of business district project costs. Those
obligations, when so issued, shall be retired in the manner
provided in the ordinance authorizing the issuance of those
obligations by the receipts of taxes imposed pursuant to
subsections (10) and (11) of Section 11-74.3-3 and by other
revenue designated or pledged by the municipality. A
municipality may in the ordinance pledge, for any period of
time up to and including the dissolution date, all or any part
of the funds in and to be deposited into in the Business
District Tax Allocation Fund to the payment of business
district project costs and obligations. Whenever a
municipality pledges all of the funds to the credit of a
business district tax allocation fund to secure obligations

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issued or to be issued to pay or reimburse business district
project costs, the municipality may specifically provide that
funds remaining to the credit of such business district tax
allocation fund after the payment of such obligations shall be
accounted for annually and shall be deemed to be "surplus"
funds, and such "surplus" funds shall be expended by the
municipality for any business district project cost as
approved in the business district plan. Whenever a
municipality pledges less than all of the monies to the credit
of a business district tax allocation fund to secure
obligations issued or to be issued to pay or reimburse
business district project costs, the municipality shall
provide that monies to the credit of the business district tax
allocation fund and not subject to such pledge or otherwise
encumbered or required for payment of contractual obligations
for specific business district project costs shall be
calculated annually and shall be deemed to be "surplus" funds,
and such "surplus" funds shall be expended by the municipality
for any business district project cost as approved in the
business district plan.
No obligation issued pursuant to this Law and secured by a
pledge of all or any portion of any revenues received or to be
received by the municipality from the imposition of taxes
pursuant to subsection (10) of Section 11-74.3-3, shall be
deemed to constitute an economic incentive agreement under
Section 8-11-20, notwithstanding the fact that such pledge

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provides for the sharing, rebate, or payment of retailers'
occupation taxes or service occupation taxes imposed pursuant
to subsection (10) of Section 11-74.3-3 and received or to be
received by the municipality from the development or
redevelopment of properties in the business district.
Without limiting the foregoing in this Section, the
municipality may further secure obligations secured by the
business district tax allocation fund with a pledge, for a
period not greater than the term of the obligations and in any
case not longer than the dissolution date, of any part or any
combination of the following: (i) net revenues of all or part
of any business district project; (ii) taxes levied or imposed
by the municipality on any or all property in the
municipality, including, specifically, taxes levied or imposed
by the municipality in a special service area pursuant to the
Special Service Area Tax Law; (iii) the full faith and credit
of the municipality; (iv) a mortgage on part or all of the
business district project; or (v) any other taxes or
anticipated receipts that the municipality may lawfully
pledge.
Such obligations may be issued in one or more series, bear
such date or dates, become due at such time or times as therein
provided, but in any case not later than (i) 20 years after the
date of issue or (ii) the dissolution date, whichever is
earlier, bear interest payable at such intervals and at such
rate or rates as set forth therein, except as may be limited by

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applicable law, which rate or rates may be fixed or variable,
be in such denominations, be in such form, either coupon,
registered, or book-entry, carry such conversion, registration
and exchange privileges, be subject to defeasance upon such
terms, have such rank or priority, be executed in such manner,
be payable in such medium or payment at such place or places
within or without the State, make provision for a corporate
trustee within or without the State with respect to such
obligations, prescribe the rights, powers, and duties thereof
to be exercised for the benefit of the municipality and the
benefit of the owners of such obligations, provide for the
holding in trust, investment, and use of moneys, funds, and
accounts held under an ordinance, provide for assignment of
and direct payment of the moneys to pay such obligations or to
be deposited into such funds or accounts directly to such
trustee, be subject to such terms of redemption with or
without premium, and be sold at such price, all as the
corporate authorities shall determine. No referendum approval
of the electors shall be required as a condition to the
issuance of obligations pursuant to this Law except as
provided in this Section.
In the event the municipality authorizes the issuance of
obligations pursuant to the authority of this Law secured by
the full faith and credit of the municipality, or pledges ad
valorem taxes pursuant to this subsection, which obligations
are other than obligations which may be issued under home rule

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powers provided by Section 6 of Article VII of the Illinois
Constitution or which ad valorem taxes are other than ad
valorem taxes which may be pledged under home rule powers
provided by Section 6 of Article VII of the Illinois
Constitution or which are levied in a special service area
pursuant to the Special Service Area Tax Law, the ordinance
authorizing the issuance of those obligations or pledging
those taxes shall be published within 10 days after the
ordinance has been adopted, in a newspaper having a general
circulation within the municipality. The publication of the
ordinance shall be accompanied by a notice of (i) the specific
number of voters required to sign a petition requesting the
question of the issuance of the obligations or pledging such
ad valorem taxes to be submitted to the electors; (ii) the time
within which the petition must be filed; and (iii) the date of
the prospective referendum. The municipal clerk shall provide
a petition form to any individual requesting one.
If no petition is filed with the municipal clerk, as
hereinafter provided in this Section, within 21 days after the
publication of the ordinance, the ordinance shall be in
effect. However, if within that 21-day period a petition is
filed with the municipal clerk, signed by electors numbering
not less than 15% of the number of electors voting for the
mayor or president at the last general municipal election,
asking that the question of issuing obligations using full
faith and credit of the municipality as security for the cost

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of paying or reimbursing business district project costs, or
of pledging such ad valorem taxes for the payment of those
obligations, or both, be submitted to the electors of the
municipality, the municipality shall not be authorized to
issue obligations of the municipality using the full faith and
credit of the municipality as security or pledging such ad
valorem taxes for the payment of those obligations, or both,
until the proposition has been submitted to and approved by a
majority of the voters voting on the proposition at a
regularly scheduled election. The municipality shall certify
the proposition to the proper election authorities for
submission in accordance with the general election law.
The ordinance authorizing the obligations may provide that
the obligations shall contain a recital that they are issued
pursuant to this Law, which recital shall be conclusive
evidence of their validity and of the regularity of their
issuance.
In the event the municipality authorizes issuance of
obligations pursuant to this Law secured by the full faith and
credit of the municipality, the ordinance authorizing the
obligations may provide for the levy and collection of a
direct annual tax upon all taxable property within the
municipality sufficient to pay the principal thereof and
interest thereon as it matures, which levy may be in addition
to and exclusive of the maximum of all other taxes authorized
to be levied by the municipality, which levy, however, shall

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be abated to the extent that monies from other sources are
available for payment of the obligations and the municipality
certifies the amount of those monies available to the county
clerk.
A certified copy of the ordinance shall be filed with the
county clerk of each county in which any portion of the
municipality is situated, and shall constitute the authority
for the extension and collection of the taxes to be deposited
into in the business district tax allocation fund.
A municipality may also issue its obligations to refund,
in whole or in part, obligations theretofore issued by the
municipality under the authority of this Law, whether at or
prior to maturity. However, the last maturity of the refunding
obligations shall not be expressed to mature later than the
dissolution date.
In the event a municipality issues obligations under home
rule powers or other legislative authority, the proceeds of
which are pledged to pay or reimburse business district
project costs, the municipality may, if it has followed the
procedures in conformance with this Law, retire those
obligations from funds in the business district tax allocation
fund in amounts and in such manner as if those obligations had
been issued pursuant to the provisions of this Law.
No obligations issued pursuant to this Law shall be
regarded as indebtedness of the municipality issuing those
obligations or any other taxing district for the purpose of

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any limitation imposed by law.
Obligations issued pursuant to this Law shall not be
subject to the provisions of the Bond Authorization Act.
(f) When business district project costs, including,
without limitation, all obligations paying or reimbursing
business district project costs have been paid, any surplus
funds then remaining in the Business District Tax Allocation
Fund shall be distributed to the municipal treasurer for
deposit into the general corporate fund of the municipality.
Upon payment of all business district project costs and
retirement of all obligations paying or reimbursing business
district project costs, but in no event more than 23 years
after the date of adoption of the ordinance imposing taxes
pursuant to subsection (10) or (11) of Section 11-74.3-3, the
municipality shall adopt an ordinance immediately rescinding
the taxes imposed pursuant to subsection (10) or (11) of
Section 11-74.3-3.
(Source: P.A. 102-700, eff. 4-19-22; 103-592, eff. 1-1-25.)
(70 ILCS 925/Act rep.)
Section 10-43. The Mid-Illinois Medical District Act is
repealed.
Section 10-45. The Metro-East Park and Recreation District
Act is amended by changing Section 30 as follows:

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(70 ILCS 1605/30)
Sec. 30. Taxes.
(a) The board shall impose a tax upon all persons engaged
in the business of selling tangible personal property, other
than personal property titled or registered with an agency of
this State's government, at retail in the District on the
gross receipts from the sales made in the course of business.
This tax shall be imposed only at the rate of one-tenth of one
per cent.
This additional tax may not be imposed on tangible
personal property taxed at the 1% rate under the Retailers'
Occupation Tax Act (or at the 0% rate imposed under this
amendatory Act of the 102nd General Assembly). Beginning
December 1, 2019 and through December 31, 2020, this tax is not
imposed on sales of aviation fuel unless the tax revenue is
expended for airport-related purposes. If the District does
not have an airport-related purpose to which it dedicates
aviation fuel tax revenue, then aviation fuel shall be
excluded from tax. The board must comply with the
certification requirements for airport-related purposes under
Section 2-22 of the Retailers' Occupation Tax Act. For
purposes of this Act, "airport-related purposes" has the
meaning ascribed in Section 6z-20.2 of the State Finance Act.
Beginning January 1, 2021, this tax is not imposed on sales of
aviation fuel for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the

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District. The tax imposed by the Board under this Section and
all civil penalties that may be assessed as an incident of the
tax shall be collected and enforced by the Department of
Revenue. The certificate of registration that is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act shall permit the retailer to engage in a business that is
taxable without registering separately with the Department
under an ordinance or resolution under this Section. The
Department has full power to administer and enforce this
Section, to collect all taxes and penalties due under this
Section, to dispose of taxes and penalties so collected in the
manner provided in this Section, and to determine all rights
to credit memoranda arising on account of the erroneous
payment of a tax or penalty under this Section. In the
administration of and compliance with this Section, the
Department and persons who are subject to this Section shall
(i) have the same rights, remedies, privileges, immunities,
powers, and duties, (ii) be subject to the same conditions,
restrictions, limitations, penalties, and definitions of
terms, and (iii) employ the same modes of procedure as are
prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m,
1n, 2, 2-5, 2-5.5, 2-10 (in respect to all provisions
contained in those Sections other than the State rate of tax),
2-12, 2-15 through 2-70, 2a, 2b, 2c, 3 (except provisions
relating to transaction returns and quarter monthly payments,
and except that the retailer's discount is not allowed for

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taxes paid on aviation fuel that are subject to the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5,
5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c,
6d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers'
Occupation Tax Act and the Uniform Penalty and Interest Act as
if those provisions were set forth in this Section.
Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
sellers' tax liability by separately stating the tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State tax which sellers are required
to collect under the Use Tax Act, pursuant to such bracketed
schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the State Metro-East Park and Recreation
District Fund or the Local Government Aviation Trust Fund, as
appropriate.
(b) If a tax has been imposed under subsection (a), a
service occupation tax shall also be imposed at the same rate
upon all persons engaged, in the District, in the business of
making sales of service, who, as an incident to making those

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sales of service, transfer tangible personal property within
the District as an incident to a sale of service. This tax may
not be imposed on tangible personal property taxed at the 1%
rate under the Service Occupation Tax Act (or at the 0% rate
imposed under this amendatory Act of the 102nd General
Assembly). Beginning December 1, 2019 and through December 31,
2020, this tax may not be imposed on sales of aviation fuel
unless the tax revenue is expended for airport-related
purposes. If the District does not have an airport-related
purpose to which it dedicates aviation fuel tax revenue, then
aviation fuel shall be excluded from tax. The board must
comply with the certification requirements for airport-related
purposes under Section 2-22 of the Retailers' Occupation Tax
Act. For purposes of this Act, "airport-related purposes" has
the meaning ascribed in Section 6z-20.2 of the State Finance
Act. Beginning January 1, 2021, this tax is not imposed on
sales of aviation fuel for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the District. The tax imposed under this subsection
and all civil penalties that may be assessed as an incident
thereof shall be collected and enforced by the Department of
Revenue. The Department has full power to administer and
enforce this subsection; to collect all taxes and penalties
due hereunder; to dispose of taxes and penalties so collected
in the manner hereinafter provided; and to determine all
rights to credit memoranda arising on account of the erroneous

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

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granted in this subsection may reimburse themselves for their
serviceman's tax liability by separately stating the tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State tax that servicemen are
authorized to collect under the Service Use Tax Act, in
accordance with such bracket schedules as the Department may
prescribe.
Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the State Metro-East Park and Recreation
District Fund or the Local Government Aviation Trust Fund, as
appropriate.
Nothing in this subsection shall be construed to authorize
the board to impose a tax upon the privilege of engaging in any
business which under the Constitution of the United States may
not be made the subject of taxation by the State.
(b-5) If, on January 1, 2025, a unit of local government
has in effect a tax under this Section, or if, after January 1,
2025, a unit of local government imposes a tax under this
Section, then that tax applies to leases of tangible personal
property in effect, entered into, or renewed on or after that
date in the same manner as the tax under this Section and in

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accordance with the changes made by this amendatory Act of the
103rd General Assembly.
(c) Except as otherwise provided in this paragraph, the
Department shall immediately pay over to the State Treasurer,
ex officio, as trustee, all taxes and penalties collected
under this Section to be deposited into the State Metro-East
Park and Recreation District Fund, which shall be an
unappropriated trust fund held outside of the State treasury.
Taxes and penalties collected on aviation fuel sold on or
after December 1, 2019 and through December 31, 2020, shall be
immediately paid over by the Department to the State
Treasurer, ex officio, as trustee, for deposit into the Local
Government Aviation Trust Fund. The Department shall only pay
moneys into the Local Government Aviation Trust Fund under
this Act for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
District.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for
sales within a STAR bond district. The Department shall make
this certification only if the Metro East Park and Recreation

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District imposes a tax on real property as provided in the
definition of "local sales taxes" under the Innovation
Development and Economy Act.
As soon as possible after the first day of each month,
beginning June 1, 2026, 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 Statewide
Innovation Development and Economy Act, collected under this
Section during the second preceding calendar month for sales
within a STAR bond district. The Department shall make this
certification only if the Metro East Park and Recreation
District imposes a tax on real property as provided in the
definition of "local sales taxes" under the Statewide
Innovation Development and Economy Act.
After the monthly transfers transfer to the STAR Bonds
Revenue Fund, on or before the 25th day of each calendar month,
the Department shall prepare and certify to the Comptroller
the disbursement of stated sums of money pursuant to Section
35 of this Act to the District from which retailers have paid
taxes or penalties to the Department during the second
preceding calendar month. The amount to be paid to the
District shall be the amount (not including credit memoranda
and not including taxes and penalties collected on aviation
fuel sold on or after December 1, 2019 and through December 31,
2020) collected under this Section during the second preceding

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

10400HB0910ham003 - 321 - LRB104 04808 HLH 37059 a
mined in Illinois is extracted from the earth. This paragraph
does not apply to coal or another mineral when it is delivered
or shipped by the seller to the purchaser at a point outside
Illinois so that the sale is exempt under the United States
Constitution as a sale in interstate or foreign commerce.
(e) Nothing in this Section shall be construed to
authorize the board to impose a tax upon the privilege of
engaging in any business that under the Constitution of the
United States may not be made the subject of taxation by this
State.
(f) An ordinance imposing a tax under this Section or an
ordinance extending the imposition of a tax to an additional
county or counties shall be certified by the board and filed
with the Department of Revenue either (i) on or before the
first day of April, whereupon the Department shall proceed to
administer and enforce the tax as of the first day of July next
following the filing; or (ii) on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce the tax as of the first day of January next
following the filing.
(g) When certifying the amount of a monthly disbursement
to the District under this Section, the Department shall
increase or decrease the amounts by an amount necessary to
offset any misallocation of previous disbursements. The offset
amount shall be the amount erroneously disbursed within the
previous 6 months from the time a misallocation is discovered.

10400HB0910ham003 - 322 - LRB104 04808 HLH 37059 a
(Source: P.A. 102-700, eff. 4-19-22; 103-592, eff. 1-1-25.)
Section 10-50. The Local Mass Transit District Act is
amended by changing Section 5.01 as follows:
(70 ILCS 3610/5.01) (from Ch. 111 2/3, par. 355.01)
Sec. 5.01. Metro East Mass Transit District; use and
occupation taxes.
(a) The Board of Trustees of any Metro East Mass Transit
District may, by ordinance adopted with the concurrence of
two-thirds of the then trustees, impose throughout the
District any or all of the taxes and fees provided in this
Section. Except as otherwise provided, all taxes and fees
imposed under this Section shall be used only for public mass
transportation systems, and the amount used to provide mass
transit service to unserved areas of the District shall be in
the same proportion to the total proceeds as the number of
persons residing in the unserved areas is to the total
population of the District. Except as otherwise provided in
this Act, taxes imposed under this Section and civil penalties
imposed incident thereto shall be collected and enforced by
the State Department of Revenue. The Department shall have the
power to administer and enforce the taxes and to determine all
rights for refunds for erroneous payments of the taxes.
(b) The Board may impose a Metro East Mass Transit
District Retailers' Occupation Tax upon all persons engaged in

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the business of selling tangible personal property at retail
in the district at a rate of 1/4 of 1%, or as authorized under
subsection (d-5) of this Section, of the gross receipts from
the sales made in the course of such business within the
district, including sales of food for human consumption that
is to be consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, candy, and food that has been
prepared for immediate consumption), except that the rate of
tax imposed under this Section on sales of aviation fuel on or
after December 1, 2019 shall be 0.25% in Madison County unless
the Metro-East Mass Transit District in Madison County has an
"airport-related purpose" and any additional amount authorized
under subsection (d-5) is expended for airport-related
purposes. If there is no airport-related purpose to which
aviation fuel tax revenue is dedicated, then aviation fuel is
excluded from any additional amount authorized under
subsection (d-5). The rate in St. Clair County shall be 0.25%
unless the Metro-East Mass Transit District in St. Clair
County has an "airport-related purpose" and the additional
0.50% of the 0.75% tax on aviation fuel imposed in that County
is expended for airport-related purposes. If there is no
airport-related purpose to which aviation fuel tax revenue is
dedicated, then aviation fuel is excluded from the additional
0.50% of the 0.75% tax.
The Board must comply with the certification requirements

10400HB0910ham003 - 324 - LRB104 04808 HLH 37059 a
for airport-related purposes under Section 2-22 of the
Retailers' Occupation Tax Act. For purposes of this Section,
"airport-related purposes" has the meaning ascribed in Section
6z-20.2 of the State Finance Act. This exclusion for aviation
fuel only applies for so long as the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
District.
The tax imposed under this Section and all civil penalties
that may be assessed as an incident thereof shall be collected
and enforced by the State Department of Revenue. The
Department shall have full power to administer and enforce
this Section; to collect all taxes and penalties so collected
in the manner hereinafter provided; and to determine all
rights to credit memoranda arising on account of the erroneous
payment of tax or penalty hereunder. In the administration of,
and compliance with, this Section, the Department and persons
who are subject to this Section shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions and definitions of terms and
employ the same modes of procedure, as are prescribed in
Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65
(in respect to all provisions therein other than the State
rate of tax and other than the exemption for food for human
consumption that is to be consumed off the premises where it is
sold (other than alcoholic beverages, food consisting of or

10400HB0910ham003 - 325 - LRB104 04808 HLH 37059 a
infused with adult use cannabis, soft drinks, candy, and food
that has been prepared for immediate consumption), which is
taxed at the rate as provided in this subsection), 2c, 3
(except as to the disposition of taxes and penalties
collected, and except that the retailer's discount is not
allowed for taxes paid on aviation fuel that are subject to the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6,
6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12, 13, and 14 of the
Retailers' Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act, as fully as if those provisions were
set forth herein.
Persons subject to any tax imposed under the Section may
reimburse themselves for their seller's tax liability
hereunder by separately stating the tax as an additional
charge, which charge may be stated in combination, in a single
amount, with State taxes that sellers are required to collect
under the Use Tax Act, in accordance with such bracket
schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Metro East Mass Transit District tax fund

10400HB0910ham003 - 326 - LRB104 04808 HLH 37059 a
established under paragraph (h) of this Section or the Local
Government Aviation Trust Fund, as appropriate.
If a tax is imposed under this subsection (b), a tax shall
also be imposed under subsections (c) and (d) of this Section.
For the purpose of determining whether a tax authorized
under this Section is applicable, a retail sale, by a producer
of coal or other mineral mined in Illinois, is a sale at retail
at the place where the coal or other mineral mined in Illinois
is extracted from the earth. This paragraph does not apply to
coal or other mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the Federal Constitution as a sale in
interstate or foreign commerce.
No tax shall be imposed or collected under this subsection
on the sale of a motor vehicle in this State to a resident of
another state if that motor vehicle will not be titled in this
State.
Nothing in this Section shall be construed to authorize
the Metro East Mass Transit District to impose a tax upon the
privilege of engaging in any business which under the
Constitution of the United States may not be made the subject
of taxation by this State.
(c) If a tax has been imposed under subsection (b), a Metro
East Mass Transit District Service Occupation Tax shall also
be imposed upon all persons engaged, in the district, in the
business of making sales of service, who, as an incident to

10400HB0910ham003 - 327 - LRB104 04808 HLH 37059 a
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) 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, including food for human consumption that
is to be consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, candy, and food that has been
prepared for immediate consumption); and (2) 1/4%, or as
authorized under subsection (d-5) of this Section, 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 that is
licensed under the Hospital Licensing Act, the Nursing Home
Care Act, the Assisted Living and Shared Housing Act, the
Specialized Mental Health Rehabilitation Act of 2013, the
ID/DD Community Care Act, or the MC/DD Act, or the Child Care
Act of 1969, or an entity that holds a permit issued pursuant
to the Life Care Facilities Act. However, the rate of tax
imposed in these Counties under this Section on sales of
aviation fuel on or after December 1, 2019 shall be 0.25% in
Madison County unless the Metro-East Mass Transit District in
Madison County has an "airport-related purpose" and any
additional amount authorized under subsection (d-5) is

10400HB0910ham003 - 328 - LRB104 04808 HLH 37059 a
expended for airport-related purposes. If there is no
airport-related purpose to which aviation fuel tax revenue is
dedicated, then aviation fuel is excluded from any additional
amount authorized under subsection (d-5). The rate in St.
Clair County shall be 0.25% unless the Metro-East Mass Transit
District in St. Clair County has an "airport-related purpose"
and the additional 0.50% of the 0.75% tax on aviation fuel is
expended for airport-related purposes. If there is no
airport-related purpose to which aviation fuel tax revenue is
dedicated, then aviation fuel is excluded from the additional
0.50% of the 0.75% tax.
The Board must comply with the certification requirements
for airport-related purposes under Section 2-22 of the
Retailers' Occupation Tax Act. For purposes of this Section,
"airport-related purposes" has the meaning ascribed in Section
6z-20.2 of the State Finance Act. This exclusion for aviation
fuel only applies for so long as the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
District.
The tax imposed under this paragraph and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the State Department of Revenue. The
Department shall have full power to administer and enforce
this paragraph; to collect all taxes and penalties due
hereunder; to dispose of taxes and penalties so collected in
the manner hereinafter provided; and to determine all rights

10400HB0910ham003 - 329 - LRB104 04808 HLH 37059 a
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 (i) the State
rate of tax; (ii) the exemption for food for human consumption
that is to be consumed off the premises where it is sold (other
than alcoholic beverages, food consisting of or infused with
adult use cannabis, soft drinks, candy, and food that has been
prepared for immediate consumption), which is taxed at the
rate as provided in this subsection; and (iii) the exemption
for food prepared for immediate consumption and transferred
incident to a sale of service subject to the service
occupation tax by an entity that is licensed under the
Hospital Licensing Act, the Nursing Home Care Act, the
Assisted Living and Shared Housing Act, the Specialized Mental
Health Rehabilitation Act of 2013, the ID/DD Community Care
Act, or the MC/DD Act, or the Child Care Act of 1969, or an
entity that holds a permit issued pursuant to the Life Care

10400HB0910ham003 - 330 - LRB104 04808 HLH 37059 a
Facilities Act, which is taxed at the rate as provided in this
subsection), 4 (except that the reference to the State shall
be to the Authority), 5, 7, 8 (except that the jurisdiction to
which the tax shall be a debt to the extent indicated in that
Section 8 shall be the District), 9 (except as to the
disposition of taxes and penalties collected, and except that
the returned merchandise credit for this tax may not be taken
against any State tax, and except that the retailer's discount
is not allowed for taxes paid on aviation fuel that are subject
to the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133), 10, 11, 12 (except the reference therein to
Section 2b of the Retailers' Occupation Tax Act), 13 (except
that any reference to the State shall mean the District), the
first paragraph of Section 15, 16, 17, 18, 19 and 20 of the
Service Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act, as fully as if those provisions were
set forth herein.
Persons subject to any tax imposed under the authority
granted in this paragraph may reimburse themselves for their
serviceman's tax liability hereunder by separately stating the
tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax that
servicemen are authorized to collect under the Service Use Tax
Act, in accordance with such bracket schedules as the
Department may prescribe.
Whenever the Department determines that a refund should be

10400HB0910ham003 - 331 - LRB104 04808 HLH 37059 a
made under this paragraph to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Metro East Mass Transit District tax fund
established under paragraph (h) of this Section or the Local
Government Aviation Trust Fund, as appropriate.
Nothing in this paragraph shall be construed to authorize
the District to impose a tax upon the privilege of engaging in
any business which under the Constitution of the United States
may not be made the subject of taxation by the State.
(d) If a tax has been imposed under subsection (b), a Metro
East Mass Transit District Use Tax shall also be imposed upon
the privilege of using, in the district, any item of tangible
personal property that is purchased outside the district at
retail from a retailer, and that is titled or registered with
an agency of this State's government, at a rate of 1/4%, or as
authorized under subsection (d-5) of this Section, of the
selling price of the tangible personal property within the
District, as "selling price" is defined in the Use Tax Act. The
tax shall be collected from persons whose Illinois address for
titling or registration purposes is given as being in the
District. The tax shall be collected by the Department of
Revenue for the Metro East Mass Transit District. The tax must
be paid to the State, or an exemption determination must be

10400HB0910ham003 - 332 - LRB104 04808 HLH 37059 a
obtained from the Department of Revenue, before the title or
certificate of registration for the property may be issued.
The tax or proof of exemption may be transmitted to the
Department by way of the State agency with which, or the State
officer with whom, the tangible personal property must be
titled or registered if the Department and the State agency or
State officer determine that this procedure will expedite the
processing of applications for title or registration.
The Department shall have full power to administer and
enforce this paragraph; to collect all taxes, penalties and
interest due hereunder; to dispose of taxes, penalties and
interest so collected in the manner hereinafter provided; and
to determine all rights to credit memoranda or refunds arising
on account of the erroneous payment of tax, penalty or
interest hereunder. In the administration of, and compliance
with, this paragraph, the Department and persons who are
subject to this paragraph shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions and definitions of terms and
employ the same modes of procedure, as are prescribed in
Sections 2 (except the definition of "retailer maintaining a
place of business in this State"), 3 through 3-80 (except
provisions pertaining to the State rate of tax, and except
provisions concerning collection or refunding of the tax by
retailers), 4, 11, 12, 12a, 14, 15, 19 (except the portions

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pertaining to claims by retailers and except the last
paragraph concerning refunds), 20, 21 and 22 of the Use Tax Act
and Section 3-7 of the Uniform Penalty and Interest Act, that
are not inconsistent with this paragraph, as fully as if those
provisions were set forth herein.
Whenever the Department determines that a refund should be
made under this paragraph to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Metro East Mass Transit District tax fund
established under paragraph (h) of this Section.
(d-1) If, on January 1, 2025, a unit of local government
has in effect a tax under subsections (b), (c), and (d) or if,
after January 1, 2025, a unit of local government imposes a tax
under subsections (b), (c), and (d), then that tax applies to
leases of tangible personal property in effect, entered into,
or renewed on or after that date in the same manner as the tax
under this Section and in accordance with the changes made by
this amendatory Act of the 103rd General Assembly.
(d-5) (A) The county board of any county participating in
the Metro East Mass Transit District may authorize, by
ordinance, a referendum on the question of whether the tax
rates for the Metro East Mass Transit District Retailers'
Occupation Tax, the Metro East Mass Transit District Service

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Occupation Tax, and the Metro East Mass Transit District Use
Tax for the District should be increased from 0.25% to 0.75%.
Upon adopting the ordinance, the county board shall certify
the proposition to the proper election officials who shall
submit the proposition to the voters of the District at the
next election, in accordance with the general election law.
The proposition shall be in substantially the following
form:
Shall the tax rates for the Metro East Mass Transit
District Retailers' Occupation Tax, the Metro East Mass
Transit District Service Occupation Tax, and the Metro
East Mass Transit District Use Tax be increased from 0.25%
to 0.75%?
(B) Two thousand five hundred electors of any Metro East
Mass Transit District may petition the Chief Judge of the
Circuit Court, or any judge of that Circuit designated by the
Chief Judge, in which that District is located to cause to be
submitted to a vote of the electors the question whether the
tax rates for the Metro East Mass Transit District Retailers'
Occupation Tax, the Metro East Mass Transit District Service
Occupation Tax, and the Metro East Mass Transit District Use
Tax for the District should be increased from 0.25% to 0.75%.
Upon submission of such petition the court shall set a
date not less than 10 nor more than 30 days thereafter for a
hearing on the sufficiency thereof. Notice of the filing of
such petition and of such date shall be given in writing to the

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District and the County Clerk at least 7 days before the date
of such hearing.
If such petition is found sufficient, the court shall
enter an order to submit that proposition at the next
election, in accordance with general election law.
The form of the petition shall be in substantially the
following form: To the Circuit Court of the County of (name of
county):
We, the undersigned electors of the (name of transit
district), respectfully petition your honor to submit to a
vote of the electors of (name of transit district) the
following proposition:
Shall the tax rates for the Metro East Mass Transit
District Retailers' Occupation Tax, the Metro East Mass
Transit District Service Occupation Tax, and the Metro
East Mass Transit District Use Tax be increased from 0.25%
to 0.75%?
Name Address, with Street and Number.
...................... ........................................
...................... ........................................
(C) The votes shall be recorded as "YES" or "NO". If a
majority of all votes cast on the proposition are for the
increase in the tax rates, the Metro East Mass Transit
District shall begin imposing the increased rates in the
District, and the Department of Revenue shall begin collecting
the increased amounts, as provided under this Section. An

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ordinance imposing or discontinuing a tax hereunder or
effecting a change in the rate thereof shall be adopted and a
certified copy thereof filed with the Department on or before
the first day of October, whereupon the Department shall
proceed to administer and enforce this Section as of the first
day of January next following the adoption and filing, or on or
before the first day of April, whereupon the Department shall
proceed to administer and enforce this Section as of the first
day of July next following the adoption and filing.
(D) If the voters have approved a referendum under this
subsection, before November 1, 1994, to increase the tax rate
under this subsection, the Metro East Mass Transit District
Board of Trustees may adopt by a majority vote an ordinance at
any time before January 1, 1995 that excludes from the rate
increase tangible personal property that is titled or
registered with an agency of this State's government. The
ordinance excluding titled or registered tangible personal
property from the rate increase must be filed with the
Department at least 15 days before its effective date. At any
time after adopting an ordinance excluding from the rate
increase tangible personal property that is titled or
registered with an agency of this State's government, the
Metro East Mass Transit District Board of Trustees may adopt
an ordinance applying the rate increase to that tangible
personal property. The ordinance shall be adopted, and a
certified copy of that ordinance shall be filed with the

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

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Trustees of any Metro East Mass Transit District may never
reimpose a previously excluded tax rate increase on tangible
personal property titled or registered with an agency of this
State's government.
(d-6) If the Board of Trustees of any Metro East Mass
Transit District has imposed a rate increase under subsection
(d-5) and filed an ordinance with the Department of Revenue
excluding titled property from the higher rate, then that
Board may, by ordinance adopted with the concurrence of
two-thirds of the then trustees, impose throughout the
District a fee. The fee on the excluded property shall not
exceed $20 per retail transaction or an amount equal to the
amount of tax excluded, whichever is less, on tangible
personal property that is titled or registered with an agency
of this State's government. Beginning July 1, 2004, the fee
shall apply only to titled property that is subject to either
the Metro East Mass Transit District Retailers' Occupation Tax
or the Metro East Mass Transit District Service Occupation
Tax. No fee shall be imposed or collected under this
subsection on the sale of a motor vehicle in this State to a
resident of another state if that motor vehicle will not be
titled in this State.
(d-7) Until June 30, 2004, if a fee has been imposed under
subsection (d-6), a fee shall also be imposed upon the
privilege of using, in the district, any item of tangible
personal property that is titled or registered with any agency

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of this State's government, in an amount equal to the amount of
the fee imposed under subsection (d-6).
(d-7.1) Beginning July 1, 2004, any fee imposed by the
Board of Trustees of any Metro East Mass Transit District
under subsection (d-6) and all civil penalties that may be
assessed as an incident of the fees shall be collected and
enforced by the State Department of Revenue. Reference to
"taxes" in this Section shall be construed to apply to the
administration, payment, and remittance of all fees under this
Section. For purposes of any fee imposed under subsection
(d-6), 4% of the fee, penalty, and interest received by the
Department in the first 12 months that the fee is collected and
enforced by the Department and 2% of the fee, penalty, and
interest following the first 12 months (except the amount
collected on aviation fuel sold on or after December 1, 2019)
shall be deposited into the Tax Compliance and Administration
Fund and shall be used by the Department, subject to
appropriation, to cover the costs of the Department. No
retailers' discount shall apply to any fee imposed under
subsection (d-6).
(d-8) No item of titled property shall be subject to both
the higher rate approved by referendum, as authorized under
subsection (d-5), and any fee imposed under subsection (d-6)
or (d-7).
(d-9) (Blank).
(d-10) (Blank).

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(e) A certificate of registration issued by the State
Department of Revenue to a retailer under the Retailers'
Occupation Tax Act or under the Service Occupation Tax Act
shall permit the registrant to engage in a business that is
taxed under the tax imposed under paragraphs (b), (c) or (d) of
this Section and no additional registration shall be required
under the tax. A certificate issued under the Use Tax Act or
the Service Use Tax Act shall be applicable with regard to any
tax imposed under paragraph (c) of this Section.
(f) (Blank).
(g) Any ordinance imposing or discontinuing any tax under
this Section shall be adopted and a certified copy thereof
filed with the Department on or before June 1, whereupon the
Department of Revenue shall proceed to administer and enforce
this Section on behalf of the Metro East Mass Transit District
as of September 1 next following such adoption and filing.
Beginning January 1, 1992, an ordinance or resolution imposing
or discontinuing the tax hereunder shall be adopted and a
certified copy thereof filed with the Department on or before
the first day of July, whereupon the Department shall proceed
to administer and enforce this Section as of the first day of
October next following such adoption and filing. Beginning
January 1, 1993, except as provided in subsection (d-5) of
this Section, an ordinance or resolution imposing or
discontinuing the tax hereunder shall be adopted and a
certified copy thereof filed with the Department on or before

10400HB0910ham003 - 341 - LRB104 04808 HLH 37059 a
the first day of October, whereupon the Department shall
proceed to administer and enforce this Section as of the first
day of January next following such adoption and filing, or,
beginning January 1, 2004, on or before the first day of April,
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of July next following
the adoption and filing.
(h) Except as provided in subsection (d-7.1), the State
Department of Revenue shall, upon collecting any taxes as
provided in this Section, pay the taxes over to the State
Treasurer as trustee for the District. The taxes shall be held
in a trust fund outside the State treasury. If an
airport-related purpose has been certified, taxes and
penalties collected in St. Clair County on aviation fuel sold
on or after December 1, 2019 from the 0.50% of the 0.75% rate
shall be immediately paid over by the Department to the State
Treasurer, ex officio, as trustee, for deposit into the Local
Government Aviation Trust Fund. The Department shall only pay
moneys into the Local Government Aviation Trust Fund under
this Act for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
District.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR

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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.
As soon as possible after the first day of each month,
beginning July 1, 2026, 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 Statewide
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 Statewide Innovation Development and
Economy Act.
After the monthly transfers 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

10400HB0910ham003 - 343 - LRB104 04808 HLH 37059 a
collected on aviation fuel sold on or after December 1, 2019
that are deposited into the Local Government Aviation Trust
Fund) collected under this Section during the second preceding
calendar month by the Department plus an amount the Department
determines is necessary to offset any amounts that were
erroneously paid to a different taxing body, and not including
any amount equal to the amount of refunds made during the
second preceding calendar month by the Department on behalf of
the District, and not including any amount that the Department
determines is necessary to offset any amounts that were
payable to a different taxing body but were erroneously paid
to the District, and less any amounts that are transferred to
the STAR Bonds Revenue Fund, less 1.5% of the remainder, which
the Department shall transfer into the Tax Compliance and
Administration Fund. The Department, at the time of each
monthly disbursement to the District, shall prepare and
certify to the State Comptroller the amount to be transferred
into the Tax Compliance and Administration Fund under this
subsection. Within 10 days after receipt by the Comptroller of
the certification of the amount to be paid to the District and
the Tax Compliance and Administration Fund, the Comptroller
shall cause an order to be drawn for payment for the amount in
accordance with the direction in the certification.
(Source: P.A. 103-592, eff. 1-1-25; 104-6, eff. 1-1-26.)
Section 10-55. The Eminent Domain Act is amended by

10400HB0910ham003 - 344 - LRB104 04808 HLH 37059 a
changing Section 15-5-15 as follows:
(735 ILCS 30/15-5-15)
(Text of Section before amendment by P.A. 104-457)
Sec. 15-5-15. Eminent domain powers in ILCS Chapters 70
through 75. The following provisions of law may include
express grants of the power to acquire property by
condemnation or eminent domain:
(70 ILCS 5/8.02 and 5/9); Airport Authorities Act; airport
authorities; for public airport facilities.
(70 ILCS 5/8.05 and 5/9); Airport Authorities Act; airport
authorities; for removal of airport hazards.
(70 ILCS 5/8.06 and 5/9); Airport Authorities Act; airport
authorities; for reduction of the height of objects or
structures.
(70 ILCS 10/4); Interstate Airport Authorities Act; interstate
airport authorities; for general purposes.
(70 ILCS 15/3); Kankakee River Valley Area Airport Authority
Act; Kankakee River Valley Area Airport Authority; for
acquisition of land for airports.
(70 ILCS 200/2-20); Civic Center Code; civic center
authorities; for grounds, centers, buildings, and parking.
(70 ILCS 200/5-35); Civic Center Code; Aledo Civic Center
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/10-15); Civic Center Code; Aurora Metropolitan

10400HB0910ham003 - 345 - LRB104 04808 HLH 37059 a
Exposition, Auditorium and Office Building Authority; for
grounds, centers, buildings, and parking.
(70 ILCS 200/15-40); Civic Center Code; Benton Civic Center
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/20-15); Civic Center Code; Bloomington Civic
Center Authority; for grounds, centers, buildings, and
parking.
(70 ILCS 200/35-35); Civic Center Code; Brownstown Park
District Civic Center Authority; for grounds, centers,
buildings, and parking.
(70 ILCS 200/40-35); Civic Center Code; Carbondale Civic
Center Authority; for grounds, centers, buildings, and
parking.
(70 ILCS 200/55-60); Civic Center Code; Chicago South Civic
Center Authority; for grounds, centers, buildings, and
parking.
(70 ILCS 200/60-30); Civic Center Code; Collinsville
Metropolitan Exposition, Auditorium and Office Building
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/70-35); Civic Center Code; Crystal Lake Civic
Center Authority; for grounds, centers, buildings, and
parking.
(70 ILCS 200/75-20); Civic Center Code; Decatur Metropolitan
Exposition, Auditorium and Office Building Authority; for
grounds, centers, buildings, and parking.
(70 ILCS 200/80-15); Civic Center Code; DuPage County

10400HB0910ham003 - 346 - LRB104 04808 HLH 37059 a
Metropolitan Exposition, Auditorium and Office Building
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/85-35); Civic Center Code; Elgin Metropolitan
Exposition, Auditorium and Office Building Authority; for
grounds, centers, buildings, and parking.
(70 ILCS 200/95-25); Civic Center Code; Herrin Metropolitan
Exposition, Auditorium and Office Building Authority; for
grounds, centers, buildings, and parking.
(70 ILCS 200/110-35); Civic Center Code; Illinois Valley Civic
Center Authority; for grounds, centers, buildings, and
parking.
(70 ILCS 200/115-35); Civic Center Code; Jasper County Civic
Center Authority; for grounds, centers, buildings, and
parking.
(70 ILCS 200/120-25); Civic Center Code; Jefferson County
Metropolitan Exposition, Auditorium and Office Building
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/125-15); Civic Center Code; Jo Daviess County
Civic Center Authority; for grounds, centers, buildings,
and parking.
(70 ILCS 200/130-30); Civic Center Code; Katherine Dunham
Metropolitan Exposition, Auditorium and Office Building
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/145-35); Civic Center Code; Marengo Civic Center
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/150-35); Civic Center Code; Mason County Civic

10400HB0910ham003 - 347 - LRB104 04808 HLH 37059 a
Center Authority; for grounds, centers, buildings, and
parking.
(70 ILCS 200/155-15); Civic Center Code; Matteson Metropolitan
Civic Center Authority; for grounds, centers, buildings,
and parking.
(70 ILCS 200/160-35); Civic Center Code; Maywood Civic Center
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/165-35); Civic Center Code; Melrose Park
Metropolitan Exposition Auditorium and Office Building
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/170-20); Civic Center Code; certain Metropolitan
Exposition, Auditorium and Office Building Authorities;
for general purposes.
(70 ILCS 200/180-35); Civic Center Code; Normal Civic Center
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/185-15); Civic Center Code; Oak Park Civic Center
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/195-35); Civic Center Code; Ottawa Civic Center
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/200-15); Civic Center Code; Pekin Civic Center
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/205-15); Civic Center Code; Peoria Civic Center
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/210-35); Civic Center Code; Pontiac Civic Center
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/215-15); Civic Center Code; Illinois Quad City

10400HB0910ham003 - 348 - LRB104 04808 HLH 37059 a
Civic Center Authority; for grounds, centers, buildings,
and parking.
(70 ILCS 200/220-30); Civic Center Code; Quincy Metropolitan
Exposition, Auditorium and Office Building Authority; for
grounds, centers, buildings, and parking.
(70 ILCS 200/225-35); Civic Center Code; Randolph County Civic
Center Authority; for grounds, centers, buildings, and
parking.
(70 ILCS 200/230-35); Civic Center Code; River Forest
Metropolitan Exposition, Auditorium and Office Building
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/235-40); Civic Center Code; Riverside Civic
Center Authority; for grounds, centers, buildings, and
parking.
(70 ILCS 200/245-35); Civic Center Code; Salem Civic Center
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/255-20); Civic Center Code; Springfield
Metropolitan Exposition and Auditorium Authority; for
grounds, centers, and parking.
(70 ILCS 200/260-35); Civic Center Code; Sterling Metropolitan
Exposition, Auditorium and Office Building Authority; for
grounds, centers, buildings, and parking.
(70 ILCS 200/265-20); Civic Center Code; Vermilion County
Metropolitan Exposition, Auditorium and Office Building
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/270-35); Civic Center Code; Waukegan Civic Center

10400HB0910ham003 - 349 - LRB104 04808 HLH 37059 a
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/275-35); Civic Center Code; West Frankfort Civic
Center Authority; for grounds, centers, buildings, and
parking.
(70 ILCS 200/280-20); Civic Center Code; Will County
Metropolitan Exposition and Auditorium Authority; for
grounds, centers, and parking.
(70 ILCS 210/5); Metropolitan Pier and Exposition Authority
Act; Metropolitan Pier and Exposition Authority; for
general purposes, including quick-take power.
(70 ILCS 405/22.04); Soil and Water Conservation Districts
Act; soil and water conservation districts; for general
purposes.
(70 ILCS 410/10 and 410/12); Conservation District Act;
conservation districts; for open space, wildland, scenic
roadway, pathway, outdoor recreation, or other
conservation benefits.
(70 ILCS 503/25); Chanute-Rantoul National Aviation Center
Redevelopment Commission Act; Chanute-Rantoul National
Aviation Center Redevelopment Commission; for general
purposes.
(70 ILCS 507/15); Fort Sheridan Redevelopment Commission Act;
Fort Sheridan Redevelopment Commission; for general
purposes or to carry out comprehensive or redevelopment
plans.
(70 ILCS 520/8); Southwestern Illinois Development Authority

10400HB0910ham003 - 350 - LRB104 04808 HLH 37059 a
Act; Southwestern Illinois Development Authority; for
general purposes, including quick-take power.
(70 ILCS 605/4-17 and 605/5-7); Illinois Drainage Code;
drainage districts; for general purposes.
(70 ILCS 615/5 and 615/6); Chicago Drainage District Act;
corporate authorities; for construction and maintenance of
works.
(70 ILCS 705/10); Fire Protection District Act; fire
protection districts; for general purposes.
(70 ILCS 750/20); Flood Prevention District Act; flood
prevention districts; for general purposes.
(70 ILCS 805/6); Downstate Forest Preserve District Act;
certain forest preserve districts; for general purposes.
(70 ILCS 805/18.8); Downstate Forest Preserve District Act;
certain forest preserve districts; for recreational and
cultural facilities.
(70 ILCS 810/8); Cook County Forest Preserve District Act;
Forest Preserve District of Cook County; for general
purposes.
(70 ILCS 810/38); Cook County Forest Preserve District Act;
Forest Preserve District of Cook County; for recreational
facilities.
(70 ILCS 910/15 and 910/16); Hospital District Law; hospital
districts; for hospitals or hospital facilities.
(70 ILCS 915/3); Illinois Medical District Act; Illinois
Medical District Commission; for general purposes.

10400HB0910ham003 - 351 - LRB104 04808 HLH 37059 a
(70 ILCS 915/4.5); Illinois Medical District Act; Illinois
Medical District Commission; quick-take power for the
Illinois State Police Forensic Science Laboratory
(obsolete).
(70 ILCS 920/5); Tuberculosis Sanitarium District Act;
tuberculosis sanitarium districts; for tuberculosis
sanitariums.
Capital City Downtown Medical District Act; Capital City
Downtown Medical District Commission; for general
purposes.
(70 ILCS 925/20); Mid-Illinois Medical District Act;
Mid-Illinois Medical District; for general purposes.
(70 ILCS 930/20); Mid-America Medical District Act;
Mid-America Medical District Commission; for general
purposes.
(70 ILCS 935/20); Roseland Community Medical District Act;
medical district; for general purposes.
(70 ILCS 1005/7); Mosquito Abatement District Act; mosquito
abatement districts; for general purposes.
(70 ILCS 1105/8); Museum District Act; museum districts; for
general purposes.
(70 ILCS 1205/7-1); Park District Code; park districts; for
streets and other purposes.
(70 ILCS 1205/8-1); Park District Code; park districts; for
parks.
(70 ILCS 1205/9-2 and 1205/9-4); Park District Code; park

10400HB0910ham003 - 352 - LRB104 04808 HLH 37059 a
districts; for airports and landing fields.
(70 ILCS 1205/11-2 and 1205/11-3); Park District Code; park
districts; for State land abutting public water and
certain access rights.
(70 ILCS 1205/11.1-3); Park District Code; park districts; for
harbors.
(70 ILCS 1225/2); Park Commissioners Land Condemnation Act;
park districts; for street widening.
(70 ILCS 1230/1 and 1230/1-a); Park Commissioners Water
Control Act; park districts; for parks, boulevards,
driveways, parkways, viaducts, bridges, or tunnels.
(70 ILCS 1250/2); Park Commissioners Street Control (1889)
Act; park districts; for boulevards or driveways.
(70 ILCS 1290/1); Park District Aquarium and Museum Act;
municipalities or park districts; for aquariums or
museums.
(70 ILCS 1305/2); Park District Airport Zoning Act; park
districts; for restriction of the height of structures.
(70 ILCS 1310/5); Park District Elevated Highway Act; park
districts; for elevated highways.
(70 ILCS 1505/15); Chicago Park District Act; Chicago Park
District; for parks and other purposes.
(70 ILCS 1505/25.1); Chicago Park District Act; Chicago Park
District; for parking lots or garages.
(70 ILCS 1505/26.3); Chicago Park District Act; Chicago Park
District; for harbors.

10400HB0910ham003 - 353 - LRB104 04808 HLH 37059 a
(70 ILCS 1570/5); Lincoln Park Commissioners Land Condemnation
Act; Lincoln Park Commissioners; for land and interests in
land, including riparian rights.
(70 ILCS 1801/30); Alexander-Cairo Port District Act;
Alexander-Cairo Port District; for general purposes.
(70 ILCS 1805/8); Havana Regional Port District Act; Havana
Regional Port District; for general purposes.
(70 ILCS 1810/7); Illinois International Port District Act;
Illinois International Port District; for general
purposes.
(70 ILCS 1815/13); Illinois Valley Regional Port District Act;
Illinois Valley Regional Port District; for general
purposes.
(70 ILCS 1820/4); Jackson-Union Counties Regional Port
District Act; Jackson-Union Counties Regional Port
District; for removal of airport hazards or reduction of
the height of objects or structures.
(70 ILCS 1820/5); Jackson-Union Counties Regional Port
District Act; Jackson-Union Counties Regional Port
District; for general purposes.
(70 ILCS 1825/4.9); Joliet Regional Port District Act; Joliet
Regional Port District; for removal of airport hazards.
(70 ILCS 1825/4.10); Joliet Regional Port District Act; Joliet
Regional Port District; for reduction of the height of
objects or structures.
(70 ILCS 1825/4.18); Joliet Regional Port District Act; Joliet

10400HB0910ham003 - 354 - LRB104 04808 HLH 37059 a
Regional Port District; for removal of hazards from ports
and terminals.
(70 ILCS 1825/5); Joliet Regional Port District Act; Joliet
Regional Port District; for general purposes.
(70 ILCS 1830/7.1); Kaskaskia Regional Port District Act;
Kaskaskia Regional Port District; for removal of hazards
from ports and terminals.
(70 ILCS 1830/14); Kaskaskia Regional Port District Act;
Kaskaskia Regional Port District; for general purposes.
(70 ILCS 1831/30); Massac-Metropolis Port District Act;
Massac-Metropolis Port District; for general purposes.
(70 ILCS 1835/5.10); Mt. Carmel Regional Port District Act;
Mt. Carmel Regional Port District; for removal of airport
hazards.
(70 ILCS 1837/30); Ottawa Port District Act; Ottawa Port
District; for general purposes.
(70 ILCS 1842/30 and 1842/35); Rock Island Regional Port
District Act; Rock Island Regional Port District and
participating municipalities; for general Port District
purposes.
(70 ILCS 1845/4.9); Seneca Regional Port District Act; Seneca
Regional Port District; for removal of airport hazards.
(70 ILCS 1845/4.10); Seneca Regional Port District Act; Seneca
Regional Port District; for reduction of the height of
objects or structures.
(70 ILCS 1845/5); Seneca Regional Port District Act; Seneca

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Regional Port District; for general purposes.
(70 ILCS 1850/4); Shawneetown Regional Port District Act;
Shawneetown Regional Port District; for removal of airport
hazards or reduction of the height of objects or
structures.
(70 ILCS 1850/5); Shawneetown Regional Port District Act;
Shawneetown Regional Port District; for general purposes.
(70 ILCS 1860/4); Tri-City Regional Port District Act;
Tri-City Regional Port District; for removal of airport
hazards.
(70 ILCS 1860/5); Tri-City Regional Port District Act;
Tri-City Regional Port District; for the development of
facilities.
(70 ILCS 1863/11); Upper Mississippi River International Port
District Act; Upper Mississippi River International Port
District; for general purposes.
(70 ILCS 1865/4.9); Waukegan Port District Act; Waukegan Port
District; for removal of airport hazards.
(70 ILCS 1865/4.10); Waukegan Port District Act; Waukegan Port
District; for restricting the height of objects or
structures.
(70 ILCS 1865/5); Waukegan Port District Act; Waukegan Port
District; for the development of facilities.
(70 ILCS 1905/16); Railroad Terminal Authority Act; Railroad
Terminal Authority (Chicago); for general purposes.
(70 ILCS 2105/9b); River Conservancy Districts Act; river

10400HB0910ham003 - 356 - LRB104 04808 HLH 37059 a
conservancy districts; for general purposes.
(70 ILCS 2105/10a); River Conservancy Districts Act; river
conservancy districts; for corporate purposes.
(70 ILCS 2205/15); Sanitary District Act of 1907; sanitary
districts; for corporate purposes.
(70 ILCS 2205/18); Sanitary District Act of 1907; sanitary
districts; for improvements and works.
(70 ILCS 2205/19); Sanitary District Act of 1907; sanitary
districts; for access to property.
(70 ILCS 2305/8); North Shore Water Reclamation District Act;
North Shore Water Reclamation District; for corporate
purposes.
(70 ILCS 2305/15); North Shore Water Reclamation District Act;
North Shore Water Reclamation District; for improvements.
(70 ILCS 2405/7.9); Sanitary District Act of 1917; Sanitary
District of Decatur; for carrying out agreements to sell,
convey, or disburse treated wastewater to a private
entity.
(70 ILCS 2405/8); Sanitary District Act of 1917; sanitary
districts; for corporate purposes.
(70 ILCS 2405/15); Sanitary District Act of 1917; sanitary
districts; for improvements.
(70 ILCS 2405/16.9 and 2405/16.10); Sanitary District Act of
1917; sanitary districts; for waterworks.
(70 ILCS 2405/17.2); Sanitary District Act of 1917; sanitary
districts; for public sewer and water utility treatment

10400HB0910ham003 - 357 - LRB104 04808 HLH 37059 a
works.
(70 ILCS 2405/18); Sanitary District Act of 1917; sanitary
districts; for dams or other structures to regulate water
flow.
(70 ILCS 2605/8); Metropolitan Water Reclamation District Act;
Metropolitan Water Reclamation District; for corporate
purposes.
(70 ILCS 2605/16); Metropolitan Water Reclamation District
Act; Metropolitan Water Reclamation District; quick-take
power for improvements.
(70 ILCS 2605/17); Metropolitan Water Reclamation District
Act; Metropolitan Water Reclamation District; for bridges.
(70 ILCS 2605/35); Metropolitan Water Reclamation District
Act; Metropolitan Water Reclamation District; for widening
and deepening a navigable stream.
(70 ILCS 2805/10); Sanitary District Act of 1936; sanitary
districts; for corporate purposes.
(70 ILCS 2805/24); Sanitary District Act of 1936; sanitary
districts; for improvements.
(70 ILCS 2805/26i and 2805/26j); Sanitary District Act of
1936; sanitary districts; for drainage systems.
(70 ILCS 2805/27); Sanitary District Act of 1936; sanitary
districts; for dams or other structures to regulate water
flow.
(70 ILCS 2805/32k); Sanitary District Act of 1936; sanitary
districts; for water supply.

10400HB0910ham003 - 358 - LRB104 04808 HLH 37059 a
(70 ILCS 2805/32l); Sanitary District Act of 1936; sanitary
districts; for waterworks.
(70 ILCS 2905/2-7); Metro-East Sanitary District Act of 1974;
Metro-East Sanitary District; for corporate purposes.
(70 ILCS 2905/2-8); Metro-East Sanitary District Act of 1974;
Metro-East Sanitary District; for access to property.
(70 ILCS 3010/10); Sanitary District Revenue Bond Act;
sanitary districts; for sewerage systems.
(70 ILCS 3205/12); Illinois Sports Facilities Authority Act;
Illinois Sports Facilities Authority; quick-take power for
its corporate purposes (obsolete).
(70 ILCS 3405/16); Surface Water Protection District Act;
surface water protection districts; for corporate
purposes.
(70 ILCS 3605/7); Metropolitan Transit Authority Act; Chicago
Transit Authority; for transportation systems.
(70 ILCS 3605/8); Metropolitan Transit Authority Act; Chicago
Transit Authority; for general purposes.
(70 ILCS 3605/10); Metropolitan Transit Authority Act; Chicago
Transit Authority; for general purposes, including
railroad property.
(70 ILCS 3610/3 and 3610/5); Local Mass Transit District Act;
local mass transit districts; for general purposes.
(70 ILCS 3615/2.13); Regional Transportation Authority Act;
Regional Transportation Authority; for general purposes.
(70 ILCS 3705/8 and 3705/12); Public Water District Act;

10400HB0910ham003 - 359 - LRB104 04808 HLH 37059 a
public water districts; for waterworks.
(70 ILCS 3705/23a); Public Water District Act; public water
districts; for sewerage properties.
(70 ILCS 3705/23e); Public Water District Act; public water
districts; for combined waterworks and sewerage systems.
(70 ILCS 3715/6); Water Authorities Act; water authorities;
for facilities to ensure adequate water supply.
(70 ILCS 3715/27); Water Authorities Act; water authorities;
for access to property.
(75 ILCS 5/4-7); Illinois Local Library Act; boards of library
trustees; for library buildings.
(75 ILCS 16/30-55.80); Public Library District Act of 1991;
public library districts; for general purposes.
(75 ILCS 65/1 and 65/3); Libraries in Parks Act; corporate
authorities of city or park district, or board of park
commissioners; for free public library buildings.
(Source: 104-435, eff. 11-21-25; 104-454, eff. 12-12-25;
revised 1-8-26.)
(Text of Section after amendment by P.A. 104-457)
Sec. 15-5-15. Eminent domain powers in ILCS Chapters 70
through 75. The following provisions of law may include
express grants of the power to acquire property by
condemnation or eminent domain:
(70 ILCS 5/8.02 and 5/9); Airport Authorities Act; airport

10400HB0910ham003 - 360 - LRB104 04808 HLH 37059 a
authorities; for public airport facilities.
(70 ILCS 5/8.05 and 5/9); Airport Authorities Act; airport
authorities; for removal of airport hazards.
(70 ILCS 5/8.06 and 5/9); Airport Authorities Act; airport
authorities; for reduction of the height of objects or
structures.
(70 ILCS 10/4); Interstate Airport Authorities Act; interstate
airport authorities; for general purposes.
(70 ILCS 15/3); Kankakee River Valley Area Airport Authority
Act; Kankakee River Valley Area Airport Authority; for
acquisition of land for airports.
(70 ILCS 200/2-20); Civic Center Code; civic center
authorities; for grounds, centers, buildings, and parking.
(70 ILCS 200/5-35); Civic Center Code; Aledo Civic Center
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/10-15); Civic Center Code; Aurora Metropolitan
Exposition, Auditorium and Office Building Authority; for
grounds, centers, buildings, and parking.
(70 ILCS 200/15-40); Civic Center Code; Benton Civic Center
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/20-15); Civic Center Code; Bloomington Civic
Center Authority; for grounds, centers, buildings, and
parking.
(70 ILCS 200/35-35); Civic Center Code; Brownstown Park
District Civic Center Authority; for grounds, centers,
buildings, and parking.

10400HB0910ham003 - 361 - LRB104 04808 HLH 37059 a
(70 ILCS 200/40-35); Civic Center Code; Carbondale Civic
Center Authority; for grounds, centers, buildings, and
parking.
(70 ILCS 200/55-60); Civic Center Code; Chicago South Civic
Center Authority; for grounds, centers, buildings, and
parking.
(70 ILCS 200/60-30); Civic Center Code; Collinsville
Metropolitan Exposition, Auditorium and Office Building
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/70-35); Civic Center Code; Crystal Lake Civic
Center Authority; for grounds, centers, buildings, and
parking.
(70 ILCS 200/75-20); Civic Center Code; Decatur Metropolitan
Exposition, Auditorium and Office Building Authority; for
grounds, centers, buildings, and parking.
(70 ILCS 200/80-15); Civic Center Code; DuPage County
Metropolitan Exposition, Auditorium and Office Building
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/85-35); Civic Center Code; Elgin Metropolitan
Exposition, Auditorium and Office Building Authority; for
grounds, centers, buildings, and parking.
(70 ILCS 200/95-25); Civic Center Code; Herrin Metropolitan
Exposition, Auditorium and Office Building Authority; for
grounds, centers, buildings, and parking.
(70 ILCS 200/110-35); Civic Center Code; Illinois Valley Civic
Center Authority; for grounds, centers, buildings, and

10400HB0910ham003 - 362 - LRB104 04808 HLH 37059 a
parking.
(70 ILCS 200/115-35); Civic Center Code; Jasper County Civic
Center Authority; for grounds, centers, buildings, and
parking.
(70 ILCS 200/120-25); Civic Center Code; Jefferson County
Metropolitan Exposition, Auditorium and Office Building
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/125-15); Civic Center Code; Jo Daviess County
Civic Center Authority; for grounds, centers, buildings,
and parking.
(70 ILCS 200/130-30); Civic Center Code; Katherine Dunham
Metropolitan Exposition, Auditorium and Office Building
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/145-35); Civic Center Code; Marengo Civic Center
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/150-35); Civic Center Code; Mason County Civic
Center Authority; for grounds, centers, buildings, and
parking.
(70 ILCS 200/155-15); Civic Center Code; Matteson Metropolitan
Civic Center Authority; for grounds, centers, buildings,
and parking.
(70 ILCS 200/160-35); Civic Center Code; Maywood Civic Center
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/165-35); Civic Center Code; Melrose Park
Metropolitan Exposition Auditorium and Office Building
Authority; for grounds, centers, buildings, and parking.

10400HB0910ham003 - 363 - LRB104 04808 HLH 37059 a
(70 ILCS 200/170-20); Civic Center Code; certain Metropolitan
Exposition, Auditorium and Office Building Authorities;
for general purposes.
(70 ILCS 200/180-35); Civic Center Code; Normal Civic Center
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/185-15); Civic Center Code; Oak Park Civic Center
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/195-35); Civic Center Code; Ottawa Civic Center
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/200-15); Civic Center Code; Pekin Civic Center
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/205-15); Civic Center Code; Peoria Civic Center
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/210-35); Civic Center Code; Pontiac Civic Center
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/215-15); Civic Center Code; Illinois Quad City
Civic Center Authority; for grounds, centers, buildings,
and parking.
(70 ILCS 200/220-30); Civic Center Code; Quincy Metropolitan
Exposition, Auditorium and Office Building Authority; for
grounds, centers, buildings, and parking.
(70 ILCS 200/225-35); Civic Center Code; Randolph County Civic
Center Authority; for grounds, centers, buildings, and
parking.
(70 ILCS 200/230-35); Civic Center Code; River Forest
Metropolitan Exposition, Auditorium and Office Building

10400HB0910ham003 - 364 - LRB104 04808 HLH 37059 a
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/235-40); Civic Center Code; Riverside Civic
Center Authority; for grounds, centers, buildings, and
parking.
(70 ILCS 200/245-35); Civic Center Code; Salem Civic Center
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/255-20); Civic Center Code; Springfield
Metropolitan Exposition and Auditorium Authority; for
grounds, centers, and parking.
(70 ILCS 200/260-35); Civic Center Code; Sterling Metropolitan
Exposition, Auditorium and Office Building Authority; for
grounds, centers, buildings, and parking.
(70 ILCS 200/265-20); Civic Center Code; Vermilion County
Metropolitan Exposition, Auditorium and Office Building
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/270-35); Civic Center Code; Waukegan Civic Center
Authority; for grounds, centers, buildings, and parking.
(70 ILCS 200/275-35); Civic Center Code; West Frankfort Civic
Center Authority; for grounds, centers, buildings, and
parking.
(70 ILCS 200/280-20); Civic Center Code; Will County
Metropolitan Exposition and Auditorium Authority; for
grounds, centers, and parking.
(70 ILCS 210/5); Metropolitan Pier and Exposition Authority
Act; Metropolitan Pier and Exposition Authority; for
general purposes, including quick-take power.

10400HB0910ham003 - 365 - LRB104 04808 HLH 37059 a
(70 ILCS 405/22.04); Soil and Water Conservation Districts
Act; soil and water conservation districts; for general
purposes.
(70 ILCS 410/10 and 410/12); Conservation District Act;
conservation districts; for open space, wildland, scenic
roadway, pathway, outdoor recreation, or other
conservation benefits.
(70 ILCS 503/25); Chanute-Rantoul National Aviation Center
Redevelopment Commission Act; Chanute-Rantoul National
Aviation Center Redevelopment Commission; for general
purposes.
(70 ILCS 507/15); Fort Sheridan Redevelopment Commission Act;
Fort Sheridan Redevelopment Commission; for general
purposes or to carry out comprehensive or redevelopment
plans.
(70 ILCS 520/8); Southwestern Illinois Development Authority
Act; Southwestern Illinois Development Authority; for
general purposes, including quick-take power.
(70 ILCS 605/4-17 and 605/5-7); Illinois Drainage Code;
drainage districts; for general purposes.
(70 ILCS 615/5 and 615/6); Chicago Drainage District Act;
corporate authorities; for construction and maintenance of
works.
(70 ILCS 705/10); Fire Protection District Act; fire
protection districts; for general purposes.
(70 ILCS 750/20); Flood Prevention District Act; flood

10400HB0910ham003 - 366 - LRB104 04808 HLH 37059 a
prevention districts; for general purposes.
(70 ILCS 805/6); Downstate Forest Preserve District Act;
certain forest preserve districts; for general purposes.
(70 ILCS 805/18.8); Downstate Forest Preserve District Act;
certain forest preserve districts; for recreational and
cultural facilities.
(70 ILCS 810/8); Cook County Forest Preserve District Act;
Forest Preserve District of Cook County; for general
purposes.
(70 ILCS 810/38); Cook County Forest Preserve District Act;
Forest Preserve District of Cook County; for recreational
facilities.
(70 ILCS 910/15 and 910/16); Hospital District Law; hospital
districts; for hospitals or hospital facilities.
(70 ILCS 915/3); Illinois Medical District Act; Illinois
Medical District Commission; for general purposes.
(70 ILCS 915/4.5); Illinois Medical District Act; Illinois
Medical District Commission; quick-take power for the
Illinois State Police Forensic Science Laboratory
(obsolete).
(70 ILCS 920/5); Tuberculosis Sanitarium District Act;
tuberculosis sanitarium districts; for tuberculosis
sanitariums.
Capital City Downtown Medical District Act; Capital City
Downtown Medical District Commission; for general
purposes.

10400HB0910ham003 - 367 - LRB104 04808 HLH 37059 a
(70 ILCS 925/20); Mid-Illinois Medical District Act;
Mid-Illinois Medical District; for general purposes.
(70 ILCS 930/20); Mid-America Medical District Act;
Mid-America Medical District Commission; for general
purposes.
(70 ILCS 935/20); Roseland Community Medical District Act;
medical district; for general purposes.
(70 ILCS 1005/7); Mosquito Abatement District Act; mosquito
abatement districts; for general purposes.
(70 ILCS 1105/8); Museum District Act; museum districts; for
general purposes.
(70 ILCS 1205/7-1); Park District Code; park districts; for
streets and other purposes.
(70 ILCS 1205/8-1); Park District Code; park districts; for
parks.
(70 ILCS 1205/9-2 and 1205/9-4); Park District Code; park
districts; for airports and landing fields.
(70 ILCS 1205/11-2 and 1205/11-3); Park District Code; park
districts; for State land abutting public water and
certain access rights.
(70 ILCS 1205/11.1-3); Park District Code; park districts; for
harbors.
(70 ILCS 1225/2); Park Commissioners Land Condemnation Act;
park districts; for street widening.
(70 ILCS 1230/1 and 1230/1-a); Park Commissioners Water
Control Act; park districts; for parks, boulevards,

10400HB0910ham003 - 368 - LRB104 04808 HLH 37059 a
driveways, parkways, viaducts, bridges, or tunnels.
(70 ILCS 1250/2); Park Commissioners Street Control (1889)
Act; park districts; for boulevards or driveways.
(70 ILCS 1290/1); Park District Aquarium and Museum Act;
municipalities or park districts; for aquariums or
museums.
(70 ILCS 1305/2); Park District Airport Zoning Act; park
districts; for restriction of the height of structures.
(70 ILCS 1310/5); Park District Elevated Highway Act; park
districts; for elevated highways.
(70 ILCS 1505/15); Chicago Park District Act; Chicago Park
District; for parks and other purposes.
(70 ILCS 1505/25.1); Chicago Park District Act; Chicago Park
District; for parking lots or garages.
(70 ILCS 1505/26.3); Chicago Park District Act; Chicago Park
District; for harbors.
(70 ILCS 1570/5); Lincoln Park Commissioners Land Condemnation
Act; Lincoln Park Commissioners; for land and interests in
land, including riparian rights.
(70 ILCS 1801/30); Alexander-Cairo Port District Act;
Alexander-Cairo Port District; for general purposes.
(70 ILCS 1805/8); Havana Regional Port District Act; Havana
Regional Port District; for general purposes.
(70 ILCS 1810/7); Illinois International Port District Act;
Illinois International Port District; for general
purposes.

10400HB0910ham003 - 369 - LRB104 04808 HLH 37059 a
(70 ILCS 1815/13); Illinois Valley Regional Port District Act;
Illinois Valley Regional Port District; for general
purposes.
(70 ILCS 1820/4); Jackson-Union Counties Regional Port
District Act; Jackson-Union Counties Regional Port
District; for removal of airport hazards or reduction of
the height of objects or structures.
(70 ILCS 1820/5); Jackson-Union Counties Regional Port
District Act; Jackson-Union Counties Regional Port
District; for general purposes.
(70 ILCS 1825/4.9); Joliet Regional Port District Act; Joliet
Regional Port District; for removal of airport hazards.
(70 ILCS 1825/4.10); Joliet Regional Port District Act; Joliet
Regional Port District; for reduction of the height of
objects or structures.
(70 ILCS 1825/4.18); Joliet Regional Port District Act; Joliet
Regional Port District; for removal of hazards from ports
and terminals.
(70 ILCS 1825/5); Joliet Regional Port District Act; Joliet
Regional Port District; for general purposes.
(70 ILCS 1830/7.1); Kaskaskia Regional Port District Act;
Kaskaskia Regional Port District; for removal of hazards
from ports and terminals.
(70 ILCS 1830/14); Kaskaskia Regional Port District Act;
Kaskaskia Regional Port District; for general purposes.
(70 ILCS 1831/30); Massac-Metropolis Port District Act;

10400HB0910ham003 - 370 - LRB104 04808 HLH 37059 a
Massac-Metropolis Port District; for general purposes.
(70 ILCS 1835/5.10); Mt. Carmel Regional Port District Act;
Mt. Carmel Regional Port District; for removal of airport
hazards.
(70 ILCS 1837/30); Ottawa Port District Act; Ottawa Port
District; for general purposes.
(70 ILCS 1842/30 and 1842/35); Rock Island Regional Port
District Act; Rock Island Regional Port District and
participating municipalities; for general Port District
purposes.
(70 ILCS 1845/4.9); Seneca Regional Port District Act; Seneca
Regional Port District; for removal of airport hazards.
(70 ILCS 1845/4.10); Seneca Regional Port District Act; Seneca
Regional Port District; for reduction of the height of
objects or structures.
(70 ILCS 1845/5); Seneca Regional Port District Act; Seneca
Regional Port District; for general purposes.
(70 ILCS 1850/4); Shawneetown Regional Port District Act;
Shawneetown Regional Port District; for removal of airport
hazards or reduction of the height of objects or
structures.
(70 ILCS 1850/5); Shawneetown Regional Port District Act;
Shawneetown Regional Port District; for general purposes.
(70 ILCS 1860/4); Tri-City Regional Port District Act;
Tri-City Regional Port District; for removal of airport
hazards.

10400HB0910ham003 - 371 - LRB104 04808 HLH 37059 a
(70 ILCS 1860/5); Tri-City Regional Port District Act;
Tri-City Regional Port District; for the development of
facilities.
(70 ILCS 1863/11); Upper Mississippi River International Port
District Act; Upper Mississippi River International Port
District; for general purposes.
(70 ILCS 1865/4.9); Waukegan Port District Act; Waukegan Port
District; for removal of airport hazards.
(70 ILCS 1865/4.10); Waukegan Port District Act; Waukegan Port
District; for restricting the height of objects or
structures.
(70 ILCS 1865/5); Waukegan Port District Act; Waukegan Port
District; for the development of facilities.
(70 ILCS 1905/16); Railroad Terminal Authority Act; Railroad
Terminal Authority (Chicago); for general purposes.
(70 ILCS 2105/9b); River Conservancy Districts Act; river
conservancy districts; for general purposes.
(70 ILCS 2105/10a); River Conservancy Districts Act; river
conservancy districts; for corporate purposes.
(70 ILCS 2205/15); Sanitary District Act of 1907; sanitary
districts; for corporate purposes.
(70 ILCS 2205/18); Sanitary District Act of 1907; sanitary
districts; for improvements and works.
(70 ILCS 2205/19); Sanitary District Act of 1907; sanitary
districts; for access to property.
(70 ILCS 2305/8); North Shore Water Reclamation District Act;

10400HB0910ham003 - 372 - LRB104 04808 HLH 37059 a
North Shore Water Reclamation District; for corporate
purposes.
(70 ILCS 2305/15); North Shore Water Reclamation District Act;
North Shore Water Reclamation District; for improvements.
(70 ILCS 2405/7.9); Sanitary District Act of 1917; Sanitary
District of Decatur; for carrying out agreements to sell,
convey, or disburse treated wastewater to a private
entity.
(70 ILCS 2405/8); Sanitary District Act of 1917; sanitary
districts; for corporate purposes.
(70 ILCS 2405/15); Sanitary District Act of 1917; sanitary
districts; for improvements.
(70 ILCS 2405/16.9 and 2405/16.10); Sanitary District Act of
1917; sanitary districts; for waterworks.
(70 ILCS 2405/17.2); Sanitary District Act of 1917; sanitary
districts; for public sewer and water utility treatment
works.
(70 ILCS 2405/18); Sanitary District Act of 1917; sanitary
districts; for dams or other structures to regulate water
flow.
(70 ILCS 2605/8); Metropolitan Water Reclamation District Act;
Metropolitan Water Reclamation District; for corporate
purposes.
(70 ILCS 2605/16); Metropolitan Water Reclamation District
Act; Metropolitan Water Reclamation District; quick-take
power for improvements.

10400HB0910ham003 - 373 - LRB104 04808 HLH 37059 a
(70 ILCS 2605/17); Metropolitan Water Reclamation District
Act; Metropolitan Water Reclamation District; for bridges.
(70 ILCS 2605/35); Metropolitan Water Reclamation District
Act; Metropolitan Water Reclamation District; for widening
and deepening a navigable stream.
(70 ILCS 2805/10); Sanitary District Act of 1936; sanitary
districts; for corporate purposes.
(70 ILCS 2805/24); Sanitary District Act of 1936; sanitary
districts; for improvements.
(70 ILCS 2805/26i and 2805/26j); Sanitary District Act of
1936; sanitary districts; for drainage systems.
(70 ILCS 2805/27); Sanitary District Act of 1936; sanitary
districts; for dams or other structures to regulate water
flow.
(70 ILCS 2805/32k); Sanitary District Act of 1936; sanitary
districts; for water supply.
(70 ILCS 2805/32l); Sanitary District Act of 1936; sanitary
districts; for waterworks.
(70 ILCS 2905/2-7); Metro-East Sanitary District Act of 1974;
Metro-East Sanitary District; for corporate purposes.
(70 ILCS 2905/2-8); Metro-East Sanitary District Act of 1974;
Metro-East Sanitary District; for access to property.
(70 ILCS 3010/10); Sanitary District Revenue Bond Act;
sanitary districts; for sewerage systems.
(70 ILCS 3205/12); Illinois Sports Facilities Authority Act;
Illinois Sports Facilities Authority; quick-take power for

10400HB0910ham003 - 374 - LRB104 04808 HLH 37059 a
its corporate purposes (obsolete).
(70 ILCS 3405/16); Surface Water Protection District Act;
surface water protection districts; for corporate
purposes.
(70 ILCS 3605/7); Chicago Transit Authority Act; Chicago
Transit Authority; for transportation systems.
(70 ILCS 3605/8); Chicago Transit Authority Act; Chicago
Transit Authority; for general purposes.
(70 ILCS 3605/10); Chicago Transit Authority Act; Chicago
Transit Authority; for general purposes, including
railroad property.
(70 ILCS 3610/3 and 3610/5); Local Mass Transit District Act;
local mass transit districts; for general purposes.
(70 ILCS 3615/2.13); Northern Illinois Transit Authority Act;
Northern Illinois Transit Authority; for general purposes.
(70 ILCS 3705/8 and 3705/12); Public Water District Act;
public water districts; for waterworks.
(70 ILCS 3705/23a); Public Water District Act; public water
districts; for sewerage properties.
(70 ILCS 3705/23e); Public Water District Act; public water
districts; for combined waterworks and sewerage systems.
(70 ILCS 3715/6); Water Authorities Act; water authorities;
for facilities to ensure adequate water supply.
(70 ILCS 3715/27); Water Authorities Act; water authorities;
for access to property.
(75 ILCS 5/4-7); Illinois Local Library Act; boards of library

10400HB0910ham003 - 375 - LRB104 04808 HLH 37059 a
trustees; for library buildings.
(75 ILCS 16/30-55.80); Public Library District Act of 1991;
public library districts; for general purposes.
(75 ILCS 65/1 and 65/3); Libraries in Parks Act; corporate
authorities of city or park district, or board of park
commissioners; for free public library buildings.
(Source: 104-435, eff. 11-21-25; 104-454, eff. 12-12-25;
104-457, Article 5, Section 5-925, eff. 6-1-26; 104-457,
Article 10, Section 10-75, eff. 6-1-26; 104-457, Article 15,
Section 15-210, eff. 6-1-26; revised 1-8-26.)
ARTICLE 90
Section 90-95. 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.
ARTICLE 97
Section 97-97. Severability. The provisions of this Act
are severable under Section 1.31 of the Statute on Statutes.

10400HB0910ham003 - 376 - LRB104 04808 HLH 37059 a
ARTICLE 99
Section 99-99. Effective date. This Act takes effect upon
becoming law.".