Bill Text: IL HB4987 | 2023-2024 | 103rd General Assembly | Introduced


Bill Title: Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that food for human consumption that is to be consumed off the premises where it is sold is exempt from the taxes imposed under those Acts. Provides for a transfer from the General Revenue Fund to certain local tax funds of amounts that would have been deposited into those funds if the tax on those items had been imposed at the rate of 1%. Effective immediately.

Spectrum: Partisan Bill (Republican 13-0)

Status: (Introduced) 2024-04-18 - Added Co-Sponsor Rep. Nicole La Ha [HB4987 Detail]

Download: Illinois-2023-HB4987-Introduced.html

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB4987

Introduced , by Rep. Ryan Spain

SYNOPSIS AS INTRODUCED:
35 ILCS 105/3-5
35 ILCS 105/3-10
35 ILCS 105/3a from Ch. 120, par. 439.3a
35 ILCS 105/9 from Ch. 120, par. 439.9
35 ILCS 110/3-5
35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
35 ILCS 110/9 from Ch. 120, par. 439.39
35 ILCS 115/3-5
35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
35 ILCS 115/9 from Ch. 120, par. 439.109
35 ILCS 120/2-5
35 ILCS 120/2-10
35 ILCS 120/3 from Ch. 120, par. 442

Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that food for human consumption that is to be consumed off the premises where it is sold is exempt from the taxes imposed under those Acts. Provides for a transfer from the General Revenue Fund to certain local tax funds of amounts that would have been deposited into those funds if the tax on those items had been imposed at the rate of 1%. Effective immediately.
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A BILL FOR

HB4987LRB103 34737 HLH 64585 b
1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 10. The Use Tax Act is amended by changing
5Sections 3-5, 3-10, 3a, and 9 as follows:
6 (35 ILCS 105/3-5)
7 Sec. 3-5. Exemptions. Use of the following tangible
8personal property is exempt from the tax imposed by this Act:
9 (1) Personal property purchased from a corporation,
10society, association, foundation, institution, or
11organization, other than a limited liability company, that is
12organized and operated as a not-for-profit service enterprise
13for the benefit of persons 65 years of age or older if the
14personal property was not purchased by the enterprise for the
15purpose of resale by the enterprise.
16 (2) Personal property purchased by a not-for-profit
17Illinois county fair association for use in conducting,
18operating, or promoting the county fair.
19 (3) Personal property purchased by a not-for-profit arts
20or cultural organization that establishes, by proof required
21by the Department by rule, that it has received an exemption
22under Section 501(c)(3) of the Internal Revenue Code and that
23is organized and operated primarily for the presentation or

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1support of arts or cultural programming, activities, or
2services. These organizations include, but are not limited to,
3music and dramatic arts organizations such as symphony
4orchestras and theatrical groups, arts and cultural service
5organizations, local arts councils, visual arts organizations,
6and media arts organizations. On and after July 1, 2001 (the
7effective date of Public Act 92-35), however, an entity
8otherwise eligible for this exemption shall not make tax-free
9purchases unless it has an active identification number issued
10by the Department.
11 (4) Except as otherwise provided in this Act, personal
12property purchased by a governmental body, by a corporation,
13society, association, foundation, or institution organized and
14operated exclusively for charitable, religious, or educational
15purposes, or by a not-for-profit corporation, society,
16association, foundation, institution, or organization that has
17no compensated officers or employees and that is organized and
18operated primarily for the recreation of persons 55 years of
19age or older. A limited liability company may qualify for the
20exemption under this paragraph only if the limited liability
21company is organized and operated exclusively for educational
22purposes. On and after July 1, 1987, however, no entity
23otherwise eligible for this exemption shall make tax-free
24purchases unless it has an active exemption identification
25number issued by the Department.
26 (5) Until July 1, 2003, a passenger car that is a

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1replacement vehicle to the extent that the purchase price of
2the car is subject to the Replacement Vehicle Tax.
3 (6) Until July 1, 2003 and beginning again on September 1,
42004 through August 30, 2014, graphic arts machinery and
5equipment, including repair and replacement parts, both new
6and used, and including that manufactured on special order,
7certified by the purchaser to be used primarily for graphic
8arts production, and including machinery and equipment
9purchased for lease. Equipment includes chemicals or chemicals
10acting as catalysts but only if the chemicals or chemicals
11acting as catalysts effect a direct and immediate change upon
12a graphic arts product. Beginning on July 1, 2017, graphic
13arts machinery and equipment is included in the manufacturing
14and assembling machinery and equipment exemption under
15paragraph (18).
16 (7) Farm chemicals.
17 (8) Legal tender, currency, medallions, or gold or silver
18coinage issued by the State of Illinois, the government of the
19United States of America, or the government of any foreign
20country, and bullion.
21 (9) Personal property purchased from a teacher-sponsored
22student organization affiliated with an elementary or
23secondary school located in Illinois.
24 (10) A motor vehicle that is used for automobile renting,
25as defined in the Automobile Renting Occupation and Use Tax
26Act.

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1 (11) Farm machinery and equipment, both new and used,
2including that manufactured on special order, certified by the
3purchaser to be used primarily for production agriculture or
4State or federal agricultural programs, including individual
5replacement parts for the machinery and equipment, including
6machinery and equipment purchased for lease, and including
7implements of husbandry defined in Section 1-130 of the
8Illinois Vehicle Code, farm machinery and agricultural
9chemical and fertilizer spreaders, and nurse wagons required
10to be registered under Section 3-809 of the Illinois Vehicle
11Code, but excluding other motor vehicles required to be
12registered under the Illinois Vehicle Code. Horticultural
13polyhouses or hoop houses used for propagating, growing, or
14overwintering plants shall be considered farm machinery and
15equipment under this item (11). Agricultural chemical tender
16tanks and dry boxes shall include units sold separately from a
17motor vehicle required to be licensed and units sold mounted
18on a motor vehicle required to be licensed if the selling price
19of the tender is separately stated.
20 Farm machinery and equipment shall include precision
21farming equipment that is installed or purchased to be
22installed on farm machinery and equipment, including, but not
23limited to, tractors, harvesters, sprayers, planters, seeders,
24or spreaders. Precision farming equipment includes, but is not
25limited to, soil testing sensors, computers, monitors,
26software, global positioning and mapping systems, and other

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1such equipment.
2 Farm machinery and equipment also includes computers,
3sensors, software, and related equipment used primarily in the
4computer-assisted operation of production agriculture
5facilities, equipment, and activities such as, but not limited
6to, the collection, monitoring, and correlation of animal and
7crop data for the purpose of formulating animal diets and
8agricultural chemicals.
9 Beginning on January 1, 2024, farm machinery and equipment
10also includes electrical power generation equipment used
11primarily for production agriculture.
12 This item (11) is exempt from the provisions of Section
133-90.
14 (12) Until June 30, 2013, fuel and petroleum products sold
15to or used by an air common carrier, certified by the carrier
16to be used for consumption, shipment, or storage in the
17conduct of its business as an air common carrier, for a flight
18destined for or returning from a location or locations outside
19the United States without regard to previous or subsequent
20domestic stopovers.
21 Beginning July 1, 2013, fuel and petroleum products sold
22to or used by an air carrier, certified by the carrier to be
23used for consumption, shipment, or storage in the conduct of
24its business as an air common carrier, for a flight that (i) is
25engaged in foreign trade or is engaged in trade between the
26United States and any of its possessions and (ii) transports

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1at least one individual or package for hire from the city of
2origination to the city of final destination on the same
3aircraft, without regard to a change in the flight number of
4that aircraft.
5 (13) Proceeds of mandatory service charges separately
6stated on customers' bills for the purchase and consumption of
7food and beverages purchased at retail from a retailer, to the
8extent that the proceeds of the service charge are in fact
9turned over as tips or as a substitute for tips to the
10employees who participate directly in preparing, serving,
11hosting or cleaning up the food or beverage function with
12respect to which the service charge is imposed.
13 (14) Until July 1, 2003, oil field exploration, drilling,
14and production equipment, including (i) rigs and parts of
15rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
16pipe and tubular goods, including casing and drill strings,
17(iii) pumps and pump-jack units, (iv) storage tanks and flow
18lines, (v) any individual replacement part for oil field
19exploration, drilling, and production equipment, and (vi)
20machinery and equipment purchased for lease; but excluding
21motor vehicles required to be registered under the Illinois
22Vehicle Code.
23 (15) Photoprocessing machinery and equipment, including
24repair and replacement parts, both new and used, including
25that manufactured on special order, certified by the purchaser
26to be used primarily for photoprocessing, and including

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1photoprocessing machinery and equipment purchased for lease.
2 (16) Until July 1, 2028, coal and aggregate exploration,
3mining, off-highway hauling, processing, maintenance, and
4reclamation equipment, including replacement parts and
5equipment, and including equipment purchased for lease, but
6excluding motor vehicles required to be registered under the
7Illinois Vehicle Code. The changes made to this Section by
8Public Act 97-767 apply on and after July 1, 2003, but no claim
9for credit or refund is allowed on or after August 16, 2013
10(the effective date of Public Act 98-456) for such taxes paid
11during the period beginning July 1, 2003 and ending on August
1216, 2013 (the effective date of Public Act 98-456).
13 (17) Until July 1, 2003, distillation machinery and
14equipment, sold as a unit or kit, assembled or installed by the
15retailer, certified by the user to be used only for the
16production of ethyl alcohol that will be used for consumption
17as motor fuel or as a component of motor fuel for the personal
18use of the user, and not subject to sale or resale.
19 (18) Manufacturing and assembling machinery and equipment
20used primarily in the process of manufacturing or assembling
21tangible personal property for wholesale or retail sale or
22lease, whether that sale or lease is made directly by the
23manufacturer or by some other person, whether the materials
24used in the process are owned by the manufacturer or some other
25person, or whether that sale or lease is made apart from or as
26an incident to the seller's engaging in the service occupation

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1of producing machines, tools, dies, jigs, patterns, gauges, or
2other similar items of no commercial value on special order
3for a particular purchaser. The exemption provided by this
4paragraph (18) includes production related tangible personal
5property, as defined in Section 3-50, purchased on or after
6July 1, 2019. The exemption provided by this paragraph (18)
7does not include machinery and equipment used in (i) the
8generation of electricity for wholesale or retail sale; (ii)
9the generation or treatment of natural or artificial gas for
10wholesale or retail sale that is delivered to customers
11through pipes, pipelines, or mains; or (iii) the treatment of
12water for wholesale or retail sale that is delivered to
13customers through pipes, pipelines, or mains. The provisions
14of Public Act 98-583 are declaratory of existing law as to the
15meaning and scope of this exemption. Beginning on July 1,
162017, the exemption provided by this paragraph (18) includes,
17but is not limited to, graphic arts machinery and equipment,
18as defined in paragraph (6) of this Section.
19 (19) Personal property delivered to a purchaser or
20purchaser's donee inside Illinois when the purchase order for
21that personal property was received by a florist located
22outside Illinois who has a florist located inside Illinois
23deliver the personal property.
24 (20) Semen used for artificial insemination of livestock
25for direct agricultural production.
26 (21) Horses, or interests in horses, registered with and

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1meeting the requirements of any of the Arabian Horse Club
2Registry of America, Appaloosa Horse Club, American Quarter
3Horse Association, United States Trotting Association, or
4Jockey Club, as appropriate, used for purposes of breeding or
5racing for prizes. This item (21) is exempt from the
6provisions of Section 3-90, and the exemption provided for
7under this item (21) applies for all periods beginning May 30,
81995, but no claim for credit or refund is allowed on or after
9January 1, 2008 for such taxes paid during the period
10beginning May 30, 2000 and ending on January 1, 2008.
11 (22) Computers and communications equipment utilized for
12any hospital purpose and equipment used in the diagnosis,
13analysis, or treatment of hospital patients purchased by a
14lessor who leases the equipment, under a lease of one year or
15longer executed or in effect at the time the lessor would
16otherwise be subject to the tax imposed by this Act, to a
17hospital that has been issued an active tax exemption
18identification number by the Department under Section 1g of
19the Retailers' Occupation Tax Act. If the equipment is leased
20in a manner that does not qualify for this exemption or is used
21in any other non-exempt manner, the lessor shall be liable for
22the tax imposed under this Act or the Service Use Tax Act, as
23the case may be, based on the fair market value of the property
24at the time the non-qualifying use occurs. No lessor shall
25collect or attempt to collect an amount (however designated)
26that purports to reimburse that lessor for the tax imposed by

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1this Act or the Service Use Tax Act, as the case may be, if the
2tax has not been paid by the lessor. If a lessor improperly
3collects any such amount from the lessee, the lessee shall
4have a legal right to claim a refund of that amount from the
5lessor. If, however, that amount is not refunded to the lessee
6for any reason, the lessor is liable to pay that amount to the
7Department.
8 (23) Personal property purchased by a lessor who leases
9the property, under a lease of one year or longer executed or
10in effect at the time the lessor would otherwise be subject to
11the tax imposed by this Act, to a governmental body that has
12been issued an active sales tax exemption identification
13number by the Department under Section 1g of the Retailers'
14Occupation Tax Act. If the property is leased in a manner that
15does not qualify for this exemption or used in any other
16non-exempt manner, the lessor shall be liable for the tax
17imposed under this Act or the Service Use Tax Act, as the case
18may be, based on the fair market value of the property at the
19time the non-qualifying use occurs. No lessor shall collect or
20attempt to collect an amount (however designated) that
21purports to reimburse that lessor for the tax imposed by this
22Act or the Service Use Tax Act, as the case may be, if the tax
23has not been paid by the lessor. If a lessor improperly
24collects any such amount from the lessee, the lessee shall
25have a legal right to claim a refund of that amount from the
26lessor. If, however, that amount is not refunded to the lessee

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1for any reason, the lessor is liable to pay that amount to the
2Department.
3 (24) Beginning with taxable years ending on or after
4December 31, 1995 and ending with taxable years ending on or
5before December 31, 2004, personal property that is donated
6for disaster relief to be used in a State or federally declared
7disaster area in Illinois or bordering Illinois by a
8manufacturer or retailer that is registered in this State to a
9corporation, society, association, foundation, or institution
10that has been issued a sales tax exemption identification
11number by the Department that assists victims of the disaster
12who reside within the declared disaster area.
13 (25) Beginning with taxable years ending on or after
14December 31, 1995 and ending with taxable years ending on or
15before December 31, 2004, personal property that is used in
16the performance of infrastructure repairs in this State,
17including, but not limited to, municipal roads and streets,
18access roads, bridges, sidewalks, waste disposal systems,
19water and sewer line extensions, water distribution and
20purification facilities, storm water drainage and retention
21facilities, and sewage treatment facilities, resulting from a
22State or federally declared disaster in Illinois or bordering
23Illinois when such repairs are initiated on facilities located
24in the declared disaster area within 6 months after the
25disaster.
26 (26) Beginning July 1, 1999, game or game birds purchased

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1at a "game breeding and hunting preserve area" as that term is
2used in the Wildlife Code. This paragraph is exempt from the
3provisions of Section 3-90.
4 (27) A motor vehicle, as that term is defined in Section
51-146 of the Illinois Vehicle Code, that is donated to a
6corporation, limited liability company, society, association,
7foundation, or institution that is determined by the
8Department to be organized and operated exclusively for
9educational purposes. For purposes of this exemption, "a
10corporation, limited liability company, society, association,
11foundation, or institution organized and operated exclusively
12for educational purposes" means all tax-supported public
13schools, private schools that offer systematic instruction in
14useful branches of learning by methods common to public
15schools and that compare favorably in their scope and
16intensity with the course of study presented in tax-supported
17schools, and vocational or technical schools or institutes
18organized and operated exclusively to provide a course of
19study of not less than 6 weeks duration and designed to prepare
20individuals to follow a trade or to pursue a manual,
21technical, mechanical, industrial, business, or commercial
22occupation.
23 (28) Beginning January 1, 2000, personal property,
24including food, purchased through fundraising events for the
25benefit of a public or private elementary or secondary school,
26a group of those schools, or one or more school districts if

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1the events are sponsored by an entity recognized by the school
2district that consists primarily of volunteers and includes
3parents and teachers of the school children. This paragraph
4does not apply to fundraising events (i) for the benefit of
5private home instruction or (ii) for which the fundraising
6entity purchases the personal property sold at the events from
7another individual or entity that sold the property for the
8purpose of resale by the fundraising entity and that profits
9from the sale to the fundraising entity. This paragraph is
10exempt from the provisions of Section 3-90.
11 (29) Beginning January 1, 2000 and through December 31,
122001, new or used automatic vending machines that prepare and
13serve hot food and beverages, including coffee, soup, and
14other items, and replacement parts for these machines.
15Beginning January 1, 2002 and through June 30, 2003, machines
16and parts for machines used in commercial, coin-operated
17amusement and vending business if a use or occupation tax is
18paid on the gross receipts derived from the use of the
19commercial, coin-operated amusement and vending machines. This
20paragraph is exempt from the provisions of Section 3-90.
21 (30) Beginning January 1, 2001 and through June 30, 2016,
22food for human consumption that is to be consumed off the
23premises where it is sold (other than alcoholic beverages,
24soft drinks, and food that has been prepared for immediate
25consumption) and prescription and nonprescription medicines,
26drugs, medical appliances, and insulin, urine testing

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1materials, syringes, and needles used by diabetics, for human
2use, when purchased for use by a person receiving medical
3assistance under Article V of the Illinois Public Aid Code who
4resides in a licensed long-term care facility, as defined in
5the Nursing Home Care Act, or in a licensed facility as defined
6in the ID/DD Community Care Act, the MC/DD Act, or the
7Specialized Mental Health Rehabilitation Act of 2013.
8 (31) Beginning on August 2, 2001 (the effective date of
9Public Act 92-227), computers and communications equipment
10utilized for any hospital purpose and equipment used in the
11diagnosis, analysis, or treatment of hospital patients
12purchased by a lessor who leases the equipment, under a lease
13of one year or longer executed or in effect at the time the
14lessor would otherwise be subject to the tax imposed by this
15Act, to a hospital that has been issued an active tax exemption
16identification number by the Department under Section 1g of
17the Retailers' Occupation Tax Act. If the equipment is leased
18in a manner that does not qualify for this exemption or is used
19in any other nonexempt manner, the lessor shall be liable for
20the tax imposed under this Act or the Service Use Tax Act, as
21the case may be, based on the fair market value of the property
22at the time the nonqualifying use occurs. No lessor shall
23collect or attempt to collect an amount (however designated)
24that purports to reimburse that lessor for the tax imposed by
25this Act or the Service Use Tax Act, as the case may be, if the
26tax has not been paid by the lessor. If a lessor improperly

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1collects any such amount from the lessee, the lessee shall
2have a legal right to claim a refund of that amount from the
3lessor. If, however, that amount is not refunded to the lessee
4for any reason, the lessor is liable to pay that amount to the
5Department. This paragraph is exempt from the provisions of
6Section 3-90.
7 (32) Beginning on August 2, 2001 (the effective date of
8Public Act 92-227), personal property purchased by a lessor
9who leases the property, under a lease of one year or longer
10executed or in effect at the time the lessor would otherwise be
11subject to the tax imposed by this Act, to a governmental body
12that has been issued an active sales tax exemption
13identification number by the Department under Section 1g of
14the Retailers' Occupation Tax Act. If the property is leased
15in a manner that does not qualify for this exemption or used in
16any other nonexempt manner, the lessor shall be liable for the
17tax imposed under this Act or the Service Use Tax Act, as the
18case may be, based on the fair market value of the property at
19the time the nonqualifying use occurs. No lessor shall collect
20or attempt to collect an amount (however designated) that
21purports to reimburse that lessor for the tax imposed by this
22Act or the Service Use Tax Act, as the case may be, if the tax
23has not been paid by the lessor. If a lessor improperly
24collects any such amount from the lessee, the lessee shall
25have a legal right to claim a refund of that amount from the
26lessor. If, however, that amount is not refunded to the lessee

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1for any reason, the lessor is liable to pay that amount to the
2Department. This paragraph is exempt from the provisions of
3Section 3-90.
4 (33) On and after July 1, 2003 and through June 30, 2004,
5the use in this State of motor vehicles of the second division
6with a gross vehicle weight in excess of 8,000 pounds and that
7are subject to the commercial distribution fee imposed under
8Section 3-815.1 of the Illinois Vehicle Code. Beginning on
9July 1, 2004 and through June 30, 2005, the use in this State
10of motor vehicles of the second division: (i) with a gross
11vehicle weight rating in excess of 8,000 pounds; (ii) that are
12subject to the commercial distribution fee imposed under
13Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
14are primarily used for commercial purposes. Through June 30,
152005, this exemption applies to repair and replacement parts
16added after the initial purchase of such a motor vehicle if
17that motor vehicle is used in a manner that would qualify for
18the rolling stock exemption otherwise provided for in this
19Act. For purposes of this paragraph, the term "used for
20commercial purposes" means the transportation of persons or
21property in furtherance of any commercial or industrial
22enterprise, whether for-hire or not.
23 (34) Beginning January 1, 2008, tangible personal property
24used in the construction or maintenance of a community water
25supply, as defined under Section 3.145 of the Environmental
26Protection Act, that is operated by a not-for-profit

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1corporation that holds a valid water supply permit issued
2under Title IV of the Environmental Protection Act. This
3paragraph is exempt from the provisions of Section 3-90.
4 (35) Beginning January 1, 2010 and continuing through
5December 31, 2029, materials, parts, equipment, components,
6and furnishings incorporated into or upon an aircraft as part
7of the modification, refurbishment, completion, replacement,
8repair, or maintenance of the aircraft. This exemption
9includes consumable supplies used in the modification,
10refurbishment, completion, replacement, repair, and
11maintenance of aircraft. However, until January 1, 2024, this
12exemption excludes any materials, parts, equipment,
13components, and consumable supplies used in the modification,
14replacement, repair, and maintenance of aircraft engines or
15power plants, whether such engines or power plants are
16installed or uninstalled upon any such aircraft. "Consumable
17supplies" include, but are not limited to, adhesive, tape,
18sandpaper, general purpose lubricants, cleaning solution,
19latex gloves, and protective films.
20 Beginning January 1, 2010 and continuing through December
2131, 2023, this exemption applies only to the use of qualifying
22tangible personal property by persons who modify, refurbish,
23complete, repair, replace, or maintain aircraft and who (i)
24hold an Air Agency Certificate and are empowered to operate an
25approved repair station by the Federal Aviation
26Administration, (ii) have a Class IV Rating, and (iii) conduct

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1operations in accordance with Part 145 of the Federal Aviation
2Regulations. From January 1, 2024 through December 31, 2029,
3this exemption applies only to the use of qualifying tangible
4personal property by: (A) persons who modify, refurbish,
5complete, repair, replace, or maintain aircraft and who (i)
6hold an Air Agency Certificate and are empowered to operate an
7approved repair station by the Federal Aviation
8Administration, (ii) have a Class IV Rating, and (iii) conduct
9operations in accordance with Part 145 of the Federal Aviation
10Regulations; and (B) persons who engage in the modification,
11replacement, repair, and maintenance of aircraft engines or
12power plants without regard to whether or not those persons
13meet the qualifications of item (A).
14 The exemption does not include aircraft operated by a
15commercial air carrier providing scheduled passenger air
16service pursuant to authority issued under Part 121 or Part
17129 of the Federal Aviation Regulations. The changes made to
18this paragraph (35) by Public Act 98-534 are declarative of
19existing law. It is the intent of the General Assembly that the
20exemption under this paragraph (35) applies continuously from
21January 1, 2010 through December 31, 2024; however, no claim
22for credit or refund is allowed for taxes paid as a result of
23the disallowance of this exemption on or after January 1, 2015
24and prior to February 5, 2020 (the effective date of Public Act
25101-629).
26 (36) Tangible personal property purchased by a

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1public-facilities corporation, as described in Section
211-65-10 of the Illinois Municipal Code, for purposes of
3constructing or furnishing a municipal convention hall, but
4only if the legal title to the municipal convention hall is
5transferred to the municipality without any further
6consideration by or on behalf of the municipality at the time
7of the completion of the municipal convention hall or upon the
8retirement or redemption of any bonds or other debt
9instruments issued by the public-facilities corporation in
10connection with the development of the municipal convention
11hall. This exemption includes existing public-facilities
12corporations as provided in Section 11-65-25 of the Illinois
13Municipal Code. This paragraph is exempt from the provisions
14of Section 3-90.
15 (37) Beginning January 1, 2017 and through December 31,
162026, menstrual pads, tampons, and menstrual cups.
17 (38) Merchandise that is subject to the Rental Purchase
18Agreement Occupation and Use Tax. The purchaser must certify
19that the item is purchased to be rented subject to a
20rental-purchase rental purchase agreement, as defined in the
21Rental-Purchase Rental Purchase Agreement Act, and provide
22proof of registration under the Rental Purchase Agreement
23Occupation and Use Tax Act. This paragraph is exempt from the
24provisions of Section 3-90.
25 (39) Tangible personal property purchased by a purchaser
26who is exempt from the tax imposed by this Act by operation of

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1federal law. This paragraph is exempt from the provisions of
2Section 3-90.
3 (40) Qualified tangible personal property used in the
4construction or operation of a data center that has been
5granted a certificate of exemption by the Department of
6Commerce and Economic Opportunity, whether that tangible
7personal property is purchased by the owner, operator, or
8tenant of the data center or by a contractor or subcontractor
9of the owner, operator, or tenant. Data centers that would
10have qualified for a certificate of exemption prior to January
111, 2020 had Public Act 101-31 been in effect may apply for and
12obtain an exemption for subsequent purchases of computer
13equipment or enabling software purchased or leased to upgrade,
14supplement, or replace computer equipment or enabling software
15purchased or leased in the original investment that would have
16qualified.
17 The Department of Commerce and Economic Opportunity shall
18grant a certificate of exemption under this item (40) to
19qualified data centers as defined by Section 605-1025 of the
20Department of Commerce and Economic Opportunity Law of the
21Civil Administrative Code of Illinois.
22 For the purposes of this item (40):
23 "Data center" means a building or a series of
24 buildings rehabilitated or constructed to house working
25 servers in one physical location or multiple sites within
26 the State of Illinois.

HB4987- 21 -LRB103 34737 HLH 64585 b
1 "Qualified tangible personal property" means:
2 electrical systems and equipment; climate control and
3 chilling equipment and systems; mechanical systems and
4 equipment; monitoring and secure systems; emergency
5 generators; hardware; computers; servers; data storage
6 devices; network connectivity equipment; racks; cabinets;
7 telecommunications cabling infrastructure; raised floor
8 systems; peripheral components or systems; software;
9 mechanical, electrical, or plumbing systems; battery
10 systems; cooling systems and towers; temperature control
11 systems; other cabling; and other data center
12 infrastructure equipment and systems necessary to operate
13 qualified tangible personal property, including fixtures;
14 and component parts of any of the foregoing, including
15 installation, maintenance, repair, refurbishment, and
16 replacement of qualified tangible personal property to
17 generate, transform, transmit, distribute, or manage
18 electricity necessary to operate qualified tangible
19 personal property; and all other tangible personal
20 property that is essential to the operations of a computer
21 data center. The term "qualified tangible personal
22 property" also includes building materials physically
23 incorporated into in to the qualifying data center. To
24 document the exemption allowed under this Section, the
25 retailer must obtain from the purchaser a copy of the
26 certificate of eligibility issued by the Department of

HB4987- 22 -LRB103 34737 HLH 64585 b
1 Commerce and Economic Opportunity.
2 This item (40) is exempt from the provisions of Section
33-90.
4 (41) Beginning July 1, 2022, breast pumps, breast pump
5collection and storage supplies, and breast pump kits. This
6item (41) is exempt from the provisions of Section 3-90. As
7used in this item (41):
8 "Breast pump" means an electrically controlled or
9 manually controlled pump device designed or marketed to be
10 used to express milk from a human breast during lactation,
11 including the pump device and any battery, AC adapter, or
12 other power supply unit that is used to power the pump
13 device and is packaged and sold with the pump device at the
14 time of sale.
15 "Breast pump collection and storage supplies" means
16 items of tangible personal property designed or marketed
17 to be used in conjunction with a breast pump to collect
18 milk expressed from a human breast and to store collected
19 milk until it is ready for consumption.
20 "Breast pump collection and storage supplies"
21 includes, but is not limited to: breast shields and breast
22 shield connectors; breast pump tubes and tubing adapters;
23 breast pump valves and membranes; backflow protectors and
24 backflow protector adaptors; bottles and bottle caps
25 specific to the operation of the breast pump; and breast
26 milk storage bags.

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1 "Breast pump collection and storage supplies" does not
2 include: (1) bottles and bottle caps not specific to the
3 operation of the breast pump; (2) breast pump travel bags
4 and other similar carrying accessories, including ice
5 packs, labels, and other similar products; (3) breast pump
6 cleaning supplies; (4) nursing bras, bra pads, breast
7 shells, and other similar products; and (5) creams,
8 ointments, and other similar products that relieve
9 breastfeeding-related symptoms or conditions of the
10 breasts or nipples, unless sold as part of a breast pump
11 kit that is pre-packaged by the breast pump manufacturer
12 or distributor.
13 "Breast pump kit" means a kit that: (1) contains no
14 more than a breast pump, breast pump collection and
15 storage supplies, a rechargeable battery for operating the
16 breast pump, a breastmilk cooler, bottle stands, ice
17 packs, and a breast pump carrying case; and (2) is
18 pre-packaged as a breast pump kit by the breast pump
19 manufacturer or distributor.
20 (42) Tangible personal property sold by or on behalf of
21the State Treasurer pursuant to the Revised Uniform Unclaimed
22Property Act. This item (42) is exempt from the provisions of
23Section 3-90.
24 (43) Beginning on January 1, 2024, tangible personal
25property purchased by an active duty member of the armed
26forces of the United States who presents valid military

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1identification and purchases the property using a form of
2payment where the federal government is the payor. The member
3of the armed forces must complete, at the point of sale, a form
4prescribed by the Department of Revenue documenting that the
5transaction is eligible for the exemption under this
6paragraph. Retailers must keep the form as documentation of
7the exemption in their records for a period of not less than 6
8years. "Armed forces of the United States" means the United
9States Army, Navy, Air Force, Marine Corps, or Coast Guard.
10This paragraph is exempt from the provisions of Section 3-90.
11 (44) Beginning on July 1, 2024, food for human consumption
12that is to be consumed off the premises where it is sold (other
13than alcoholic beverages, food consisting of or infused with
14adult use cannabis, soft drinks, and food that has been
15prepared for immediate consumption). This item (44) is exempt
16from the provisions of Section 3-90.
17(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
18Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5,
19eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
20Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5,
21eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
22revised 12-12-23.)
23 (35 ILCS 105/3-10)
24 Sec. 3-10. Rate of tax. Unless otherwise provided in this
25Section, the tax imposed by this Act is at the rate of 6.25% of

HB4987- 25 -LRB103 34737 HLH 64585 b
1either the selling price or the fair market value, if any, of
2the tangible personal property. In all cases where property
3functionally used or consumed is the same as the property that
4was purchased at retail, then the tax is imposed on the selling
5price of the property. In all cases where property
6functionally used or consumed is a by-product or waste product
7that has been refined, manufactured, or produced from property
8purchased at retail, then the tax is imposed on the lower of
9the fair market value, if any, of the specific property so used
10in this State or on the selling price of the property purchased
11at retail. For purposes of this Section "fair market value"
12means the price at which property would change hands between a
13willing buyer and a willing seller, neither being under any
14compulsion to buy or sell and both having reasonable knowledge
15of the relevant facts. The fair market value shall be
16established by Illinois sales by the taxpayer of the same
17property as that functionally used or consumed, or if there
18are no such sales by the taxpayer, then comparable sales or
19purchases of property of like kind and character in Illinois.
20 Beginning on July 1, 2000 and through December 31, 2000,
21with respect to motor fuel, as defined in Section 1.1 of the
22Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
23the Use Tax Act, the tax is imposed at the rate of 1.25%.
24 Beginning on August 6, 2010 through August 15, 2010, and
25beginning again on August 5, 2022 through August 14, 2022,
26with respect to sales tax holiday items as defined in Section

HB4987- 26 -LRB103 34737 HLH 64585 b
13-6 of this Act, the tax is imposed at the rate of 1.25%.
2 With respect to gasohol, the tax imposed by this Act
3applies to (i) 70% of the proceeds of sales made on or after
4January 1, 1990, and before July 1, 2003, (ii) 80% of the
5proceeds of sales made on or after July 1, 2003 and on or
6before July 1, 2017, (iii) 100% of the proceeds of sales made
7after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
8the proceeds of sales made on or after January 1, 2024 and on
9or before December 31, 2028, and (v) 100% of the proceeds of
10sales made after December 31, 2028. If, at any time, however,
11the tax under this Act on sales of gasohol is imposed at the
12rate of 1.25%, then the tax imposed by this Act applies to 100%
13of the proceeds of sales of gasohol made during that time.
14 With respect to mid-range ethanol blends, the tax imposed
15by this Act applies to (i) 80% of the proceeds of sales made on
16or after January 1, 2024 and on or before December 31, 2028 and
17(ii) 100% of the proceeds of sales made thereafter. If, at any
18time, however, the tax under this Act on sales of mid-range
19ethanol blends is imposed at the rate of 1.25%, then the tax
20imposed by this Act applies to 100% of the proceeds of sales of
21mid-range ethanol blends made during that time.
22 With respect to majority blended ethanol fuel, the tax
23imposed by this Act does not apply to the proceeds of sales
24made on or after July 1, 2003 and on or before December 31,
252028 but applies to 100% of the proceeds of sales made
26thereafter.

HB4987- 27 -LRB103 34737 HLH 64585 b
1 With respect to biodiesel blends with no less than 1% and
2no more than 10% biodiesel, the tax imposed by this Act applies
3to (i) 80% of the proceeds of sales made on or after July 1,
42003 and on or before December 31, 2018 and (ii) 100% of the
5proceeds of sales made after December 31, 2018 and before
6January 1, 2024. On and after January 1, 2024 and on or before
7December 31, 2030, the taxation of biodiesel, renewable
8diesel, and biodiesel blends shall be as provided in Section
93-5.1. If, at any time, however, the tax under this Act on
10sales of biodiesel blends with no less than 1% and no more than
1110% biodiesel is imposed at the rate of 1.25%, then the tax
12imposed by this Act applies to 100% of the proceeds of sales of
13biodiesel blends with no less than 1% and no more than 10%
14biodiesel made during that time.
15 With respect to biodiesel and biodiesel blends with more
16than 10% but no more than 99% biodiesel, the tax imposed by
17this Act does not apply to the proceeds of sales made on or
18after July 1, 2003 and on or before December 31, 2023. On and
19after January 1, 2024 and on or before December 31, 2030, the
20taxation of biodiesel, renewable diesel, and biodiesel blends
21shall be as provided in Section 3-5.1.
22 Until July 1, 2022 and from beginning again on July 1, 2023
23through June 30, 2024, with respect to food for human
24consumption that is to be consumed off the premises where it is
25sold (other than alcoholic beverages, food consisting of or
26infused with adult use cannabis, soft drinks, and food that

HB4987- 28 -LRB103 34737 HLH 64585 b
1has been prepared for immediate consumption), the tax is
2imposed at the rate of 1%. From Beginning on July 1, 2022
3through June 30, 2023, and on and after July 1, 2024, and until
4July 1, 2023, with respect to food for human consumption that
5is to be consumed off the premises where it is sold (other than
6alcoholic beverages, food consisting of or infused with adult
7use cannabis, soft drinks, and food that has been prepared for
8immediate consumption) is exempt from the tax imposed under
9this Act , the tax is imposed at the rate of 0%.
10 With respect to prescription and nonprescription
11medicines, drugs, medical appliances, products classified as
12Class III medical devices by the United States Food and Drug
13Administration that are used for cancer treatment pursuant to
14a prescription, as well as any accessories and components
15related to those devices, modifications to a motor vehicle for
16the purpose of rendering it usable by a person with a
17disability, and insulin, blood sugar testing materials,
18syringes, and needles used by human diabetics, the tax is
19imposed at the rate of 1%. For the purposes of this Section,
20until September 1, 2009: the term "soft drinks" means any
21complete, finished, ready-to-use, non-alcoholic drink, whether
22carbonated or not, including, but not limited to, soda water,
23cola, fruit juice, vegetable juice, carbonated water, and all
24other preparations commonly known as soft drinks of whatever
25kind or description that are contained in any closed or sealed
26bottle, can, carton, or container, regardless of size; but

HB4987- 29 -LRB103 34737 HLH 64585 b
1"soft drinks" does not include coffee, tea, non-carbonated
2water, infant formula, milk or milk products as defined in the
3Grade A Pasteurized Milk and Milk Products Act, or drinks
4containing 50% or more natural fruit or vegetable juice.
5 Notwithstanding any other provisions of this Act,
6beginning September 1, 2009, "soft drinks" means non-alcoholic
7beverages that contain natural or artificial sweeteners. "Soft
8drinks" does not include beverages that contain milk or milk
9products, soy, rice or similar milk substitutes, or greater
10than 50% of vegetable or fruit juice by volume.
11 Until August 1, 2009, and notwithstanding any other
12provisions of this Act, "food for human consumption that is to
13be consumed off the premises where it is sold" includes all
14food sold through a vending machine, except soft drinks and
15food products that are dispensed hot from a vending machine,
16regardless of the location of the vending machine. Beginning
17August 1, 2009, and notwithstanding any other provisions of
18this Act, "food for human consumption that is to be consumed
19off the premises where it is sold" includes all food sold
20through a vending machine, except soft drinks, candy, and food
21products that are dispensed hot from a vending machine,
22regardless of the location of the vending machine.
23 Notwithstanding any other provisions of this Act,
24beginning September 1, 2009, "food for human consumption that
25is to be consumed off the premises where it is sold" does not
26include candy. For purposes of this Section, "candy" means a

HB4987- 30 -LRB103 34737 HLH 64585 b
1preparation of sugar, honey, or other natural or artificial
2sweeteners in combination with chocolate, fruits, nuts or
3other ingredients or flavorings in the form of bars, drops, or
4pieces. "Candy" does not include any preparation that contains
5flour or requires refrigeration.
6 Notwithstanding any other provisions of this Act,
7beginning September 1, 2009, "nonprescription medicines and
8drugs" does not include grooming and hygiene products. For
9purposes of this Section, "grooming and hygiene products"
10includes, but is not limited to, soaps and cleaning solutions,
11shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
12lotions and screens, unless those products are available by
13prescription only, regardless of whether the products meet the
14definition of "over-the-counter-drugs". For the purposes of
15this paragraph, "over-the-counter-drug" means a drug for human
16use that contains a label that identifies the product as a drug
17as required by 21 CFR 201.66. The "over-the-counter-drug"
18label includes:
19 (A) a "Drug Facts" panel; or
20 (B) a statement of the "active ingredient(s)" with a
21 list of those ingredients contained in the compound,
22 substance or preparation.
23 Beginning on January 1, 2014 (the effective date of Public
24Act 98-122), "prescription and nonprescription medicines and
25drugs" includes medical cannabis purchased from a registered
26dispensing organization under the Compassionate Use of Medical

HB4987- 31 -LRB103 34737 HLH 64585 b
1Cannabis Program Act.
2 As used in this Section, "adult use cannabis" means
3cannabis subject to tax under the Cannabis Cultivation
4Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
5and does not include cannabis subject to tax under the
6Compassionate Use of Medical Cannabis Program Act.
7 If the property that is purchased at retail from a
8retailer is acquired outside Illinois and used outside
9Illinois before being brought to Illinois for use here and is
10taxable under this Act, the "selling price" on which the tax is
11computed shall be reduced by an amount that represents a
12reasonable allowance for depreciation for the period of prior
13out-of-state use.
14(Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
15Section 20-5, eff. 4-19-22; 102-700, Article 60, Section
1660-15, eff. 4-19-22; 102-700, Article 65, Section 65-5, eff.
174-19-22; 103-9, eff. 6-7-23; 103-154 eff. 6-30-23.)
18 (35 ILCS 105/3a) (from Ch. 120, par. 439.3a)
19 Sec. 3a. The tax imposed by the Act shall when collected be
20stated as a distinct item separate and apart from the selling
21price of the tangible personal property. However, where it is
22not possible to state the sales tax separately in situations
23such as sales from vending machines or sales of liquor by the
24drink the Department may by rule exempt such sales from this
25requirement so long as purchasers are notified by a sign that

HB4987- 32 -LRB103 34737 HLH 64585 b
1the tax is included in the selling price.
2 In addition, retailers who sell items that would have been
3taxed at the 1% rate but for the 0% rate imposed under this
4amendatory Act of the 102nd General Assembly shall, to the
5extent feasible, include the following statement on any cash
6register tape, receipt, invoice, or sales ticket issued to
7customers: "From July 1, 2022 through July 1, 2023, the State
8of Illinois sales tax on groceries is 0%.". If it is not
9feasible for the retailer to include the statement on any cash
10register tape, receipt, invoice, or sales ticket issued to
11customers, then the retailer shall post the statement on a
12sign that is clearly visible to customers. The sign shall be no
13smaller than 4 inches by 8 inches.
14(Source: P.A. 102-700, eff. 4-19-22.)
15 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
16 Sec. 9. Except as to motor vehicles, watercraft, aircraft,
17and trailers that are required to be registered with an agency
18of this State, each retailer required or authorized to collect
19the tax imposed by this Act shall pay to the Department the
20amount of such tax (except as otherwise provided) at the time
21when he is required to file his return for the period during
22which such tax was collected, less a discount of 2.1% prior to
23January 1, 1990, and 1.75% on and after January 1, 1990, or $5
24per calendar year, whichever is greater, which is allowed to
25reimburse the retailer for expenses incurred in collecting the

HB4987- 33 -LRB103 34737 HLH 64585 b
1tax, keeping records, preparing and filing returns, remitting
2the tax and supplying data to the Department on request. When
3determining the discount allowed under this Section, retailers
4shall include the amount of tax that would have been due at the
56.25% rate but for the 1.25% rate imposed on sales tax holiday
6items under Public Act 102-700. The discount under this
7Section is not allowed for the 1.25% portion of taxes paid on
8aviation fuel that is subject to the revenue use requirements
9of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. When determining
10the discount allowed under this Section, retailers shall
11include the amount of tax that would have been due at the 1%
12rate but for the 0% rate imposed under Public Act 102-700. In
13the case of retailers who report and pay the tax on a
14transaction by transaction basis, as provided in this Section,
15such discount shall be taken with each such tax remittance
16instead of when such retailer files his periodic return. The
17discount allowed under this Section is allowed only for
18returns that are filed in the manner required by this Act. The
19Department may disallow the discount for retailers whose
20certificate of registration is revoked at the time the return
21is filed, but only if the Department's decision to revoke the
22certificate of registration has become final. A retailer need
23not remit that part of any tax collected by him to the extent
24that he is required to remit and does remit the tax imposed by
25the Retailers' Occupation Tax Act, with respect to the sale of
26the same property.

HB4987- 34 -LRB103 34737 HLH 64585 b
1 Where such tangible personal property is sold under a
2conditional sales contract, or under any other form of sale
3wherein the payment of the principal sum, or a part thereof, is
4extended beyond the close of the period for which the return is
5filed, the retailer, in collecting the tax (except as to motor
6vehicles, watercraft, aircraft, and trailers that are required
7to be registered with an agency of this State), may collect for
8each tax return period, only the tax applicable to that part of
9the selling price actually received during such tax return
10period.
11 Except as provided in this Section, on or before the
12twentieth day of each calendar month, such retailer shall file
13a return for the preceding calendar month. Such return shall
14be filed on forms prescribed by the Department and shall
15furnish such information as the Department may reasonably
16require. The return shall include the gross receipts on food
17for human consumption that is to be consumed off the premises
18where it is sold (other than alcoholic beverages, food
19consisting of or infused with adult use cannabis, soft drinks,
20and food that has been prepared for immediate consumption)
21which were received during the preceding calendar month,
22quarter, or year, as appropriate, and upon which tax would
23have been due but for the 0% rate imposed under Public Act
24102-700. The return shall also include the amount of tax that
25would have been due on food for human consumption that is to be
26consumed off the premises where it is sold (other than

HB4987- 35 -LRB103 34737 HLH 64585 b
1alcoholic beverages, food consisting of or infused with adult
2use cannabis, soft drinks, and food that has been prepared for
3immediate consumption) but for the 0% rate imposed under
4Public Act 102-700.
5 On and after January 1, 2018, except for returns required
6to be filed prior to January 1, 2023 for motor vehicles,
7watercraft, aircraft, and trailers that are required to be
8registered with an agency of this State, with respect to
9retailers whose annual gross receipts average $20,000 or more,
10all returns required to be filed pursuant to this Act shall be
11filed electronically. On and after January 1, 2023, with
12respect to retailers whose annual gross receipts average
13$20,000 or more, all returns required to be filed pursuant to
14this Act, including, but not limited to, returns for motor
15vehicles, watercraft, aircraft, and trailers that are required
16to be registered with an agency of this State, shall be filed
17electronically. Retailers who demonstrate that they do not
18have access to the Internet or demonstrate hardship in filing
19electronically may petition the Department to waive the
20electronic filing requirement.
21 The Department may require returns to be filed on a
22quarterly basis. If so required, a return for each calendar
23quarter shall be filed on or before the twentieth day of the
24calendar month following the end of such calendar quarter. The
25taxpayer shall also file a return with the Department for each
26of the first two months of each calendar quarter, on or before

HB4987- 36 -LRB103 34737 HLH 64585 b
1the twentieth day of the following calendar month, stating:
2 1. The name of the seller;
3 2. The address of the principal place of business from
4 which he engages in the business of selling tangible
5 personal property at retail in this State;
6 3. The total amount of taxable receipts received by
7 him during the preceding calendar month from sales of
8 tangible personal property by him during such preceding
9 calendar month, including receipts from charge and time
10 sales, but less all deductions allowed by law;
11 4. The amount of credit provided in Section 2d of this
12 Act;
13 5. The amount of tax due;
14 5-5. The signature of the taxpayer; and
15 6. Such other reasonable information as the Department
16 may require.
17 Each retailer required or authorized to collect the tax
18imposed by this Act on aviation fuel sold at retail in this
19State during the preceding calendar month shall, instead of
20reporting and paying tax on aviation fuel as otherwise
21required by this Section, report and pay such tax on a separate
22aviation fuel tax return. The requirements related to the
23return shall be as otherwise provided in this Section.
24Notwithstanding any other provisions of this Act to the
25contrary, retailers collecting tax on aviation fuel shall file
26all aviation fuel tax returns and shall make all aviation fuel

HB4987- 37 -LRB103 34737 HLH 64585 b
1tax payments by electronic means in the manner and form
2required by the Department. For purposes of this Section,
3"aviation fuel" means jet fuel and aviation gasoline.
4 If a taxpayer fails to sign a return within 30 days after
5the proper notice and demand for signature by the Department,
6the return shall be considered valid and any amount shown to be
7due on the return shall be deemed assessed.
8 Notwithstanding any other provision of this Act to the
9contrary, retailers subject to tax on cannabis shall file all
10cannabis tax returns and shall make all cannabis tax payments
11by electronic means in the manner and form required by the
12Department.
13 Beginning October 1, 1993, a taxpayer who has an average
14monthly tax liability of $150,000 or more shall make all
15payments required by rules of the Department by electronic
16funds transfer. Beginning October 1, 1994, a taxpayer who has
17an average monthly tax liability of $100,000 or more shall
18make all payments required by rules of the Department by
19electronic funds transfer. Beginning October 1, 1995, a
20taxpayer who has an average monthly tax liability of $50,000
21or more shall make all payments required by rules of the
22Department by electronic funds transfer. Beginning October 1,
232000, a taxpayer who has an annual tax liability of $200,000 or
24more shall make all payments required by rules of the
25Department by electronic funds transfer. The term "annual tax
26liability" shall be the sum of the taxpayer's liabilities

HB4987- 38 -LRB103 34737 HLH 64585 b
1under this Act, and under all other State and local occupation
2and use tax laws administered by the Department, for the
3immediately preceding calendar year. The term "average monthly
4tax liability" means the sum of the taxpayer's liabilities
5under this Act, and under all other State and local occupation
6and use tax laws administered by the Department, for the
7immediately preceding calendar year divided by 12. Beginning
8on October 1, 2002, a taxpayer who has a tax liability in the
9amount set forth in subsection (b) of Section 2505-210 of the
10Department of Revenue Law shall make all payments required by
11rules of the Department by electronic funds transfer.
12 Before August 1 of each year beginning in 1993, the
13Department shall notify all taxpayers required to make
14payments by electronic funds transfer. All taxpayers required
15to make payments by electronic funds transfer shall make those
16payments for a minimum of one year beginning on October 1.
17 Any taxpayer not required to make payments by electronic
18funds transfer may make payments by electronic funds transfer
19with the permission of the Department.
20 All taxpayers required to make payment by electronic funds
21transfer and any taxpayers authorized to voluntarily make
22payments by electronic funds transfer shall make those
23payments in the manner authorized by the Department.
24 The Department shall adopt such rules as are necessary to
25effectuate a program of electronic funds transfer and the
26requirements of this Section.

HB4987- 39 -LRB103 34737 HLH 64585 b
1 Before October 1, 2000, if the taxpayer's average monthly
2tax liability to the Department under this Act, the Retailers'
3Occupation Tax Act, the Service Occupation Tax Act, the
4Service Use Tax Act was $10,000 or more during the preceding 4
5complete calendar quarters, he shall file a return with the
6Department each month by the 20th day of the month next
7following the month during which such tax liability is
8incurred and shall make payments to the Department on or
9before the 7th, 15th, 22nd and last day of the month during
10which such liability is incurred. On and after October 1,
112000, if the taxpayer's average monthly tax liability to the
12Department under this Act, the Retailers' Occupation Tax Act,
13the Service Occupation Tax Act, and the Service Use Tax Act was
14$20,000 or more during the preceding 4 complete calendar
15quarters, he shall file a return with the Department each
16month by the 20th day of the month next following the month
17during which such tax liability is incurred and shall make
18payment to the Department on or before the 7th, 15th, 22nd and
19last day of the month during which such liability is incurred.
20If the month during which such tax liability is incurred began
21prior to January 1, 1985, each payment shall be in an amount
22equal to 1/4 of the taxpayer's actual liability for the month
23or an amount set by the Department not to exceed 1/4 of the
24average monthly liability of the taxpayer to the Department
25for the preceding 4 complete calendar quarters (excluding the
26month of highest liability and the month of lowest liability

HB4987- 40 -LRB103 34737 HLH 64585 b
1in such 4 quarter period). If the month during which such tax
2liability is incurred begins on or after January 1, 1985, and
3prior to January 1, 1987, each payment shall be in an amount
4equal to 22.5% of the taxpayer's actual liability for the
5month or 27.5% of the taxpayer's liability for the same
6calendar month of the preceding year. If the month during
7which such tax liability is incurred begins on or after
8January 1, 1987, and prior to January 1, 1988, each payment
9shall be in an amount equal to 22.5% of the taxpayer's actual
10liability for the month or 26.25% of the taxpayer's liability
11for the same calendar month of the preceding year. If the month
12during which such tax liability is incurred begins on or after
13January 1, 1988, and prior to January 1, 1989, or begins on or
14after January 1, 1996, each payment shall be in an amount equal
15to 22.5% of the taxpayer's actual liability for the month or
1625% of the taxpayer's liability for the same calendar month of
17the preceding year. If the month during which such tax
18liability is incurred begins on or after January 1, 1989, and
19prior to January 1, 1996, each payment shall be in an amount
20equal to 22.5% of the taxpayer's actual liability for the
21month or 25% of the taxpayer's liability for the same calendar
22month of the preceding year or 100% of the taxpayer's actual
23liability for the quarter monthly reporting period. The amount
24of such quarter monthly payments shall be credited against the
25final tax liability of the taxpayer's return for that month.
26Before October 1, 2000, once applicable, the requirement of

HB4987- 41 -LRB103 34737 HLH 64585 b
1the making of quarter monthly payments to the Department shall
2continue until such taxpayer's average monthly liability to
3the Department during the preceding 4 complete calendar
4quarters (excluding the month of highest liability and the
5month of lowest liability) is less than $9,000, or until such
6taxpayer's average monthly liability to the Department as
7computed for each calendar quarter of the 4 preceding complete
8calendar quarter period is less than $10,000. However, if a
9taxpayer can show the Department that a substantial change in
10the taxpayer's business has occurred which causes the taxpayer
11to anticipate that his average monthly tax liability for the
12reasonably foreseeable future will fall below the $10,000
13threshold stated above, then such taxpayer may petition the
14Department for change in such taxpayer's reporting status. On
15and after October 1, 2000, once applicable, the requirement of
16the making of quarter monthly payments to the Department shall
17continue until such taxpayer's average monthly liability to
18the Department during the preceding 4 complete calendar
19quarters (excluding the month of highest liability and the
20month of lowest liability) is less than $19,000 or until such
21taxpayer's average monthly liability to the Department as
22computed for each calendar quarter of the 4 preceding complete
23calendar quarter period is less than $20,000. However, if a
24taxpayer can show the Department that a substantial change in
25the taxpayer's business has occurred which causes the taxpayer
26to anticipate that his average monthly tax liability for the

HB4987- 42 -LRB103 34737 HLH 64585 b
1reasonably foreseeable future will fall below the $20,000
2threshold stated above, then such taxpayer may petition the
3Department for a change in such taxpayer's reporting status.
4The Department shall change such taxpayer's reporting status
5unless it finds that such change is seasonal in nature and not
6likely to be long term. Quarter monthly payment status shall
7be determined under this paragraph as if the rate reduction to
81.25% in Public Act 102-700 on sales tax holiday items had not
9occurred. For quarter monthly payments due on or after July 1,
102023 and through June 30, 2024, "25% of the taxpayer's
11liability for the same calendar month of the preceding year"
12shall be determined as if the rate reduction to 1.25% in Public
13Act 102-700 on sales tax holiday items had not occurred.
14Quarter monthly payment status shall be determined under this
15paragraph as if the rate reduction to 0% in Public Act 102-700
16on food for human consumption that is to be consumed off the
17premises where it is sold (other than alcoholic beverages,
18food consisting of or infused with adult use cannabis, soft
19drinks, and food that has been prepared for immediate
20consumption) had not occurred. For quarter monthly payments
21due under this paragraph on or after July 1, 2023 and through
22June 30, 2024, "25% of the taxpayer's liability for the same
23calendar month of the preceding year" shall be determined as
24if the rate reduction to 0% in Public Act 102-700 had not
25occurred. If any such quarter monthly payment is not paid at
26the time or in the amount required by this Section, then the

HB4987- 43 -LRB103 34737 HLH 64585 b
1taxpayer shall be liable for penalties and interest on the
2difference between the minimum amount due and the amount of
3such quarter monthly payment actually and timely paid, except
4insofar as the taxpayer has previously made payments for that
5month to the Department in excess of the minimum payments
6previously due as provided in this Section. The Department
7shall make reasonable rules and regulations to govern the
8quarter monthly payment amount and quarter monthly payment
9dates for taxpayers who file on other than a calendar monthly
10basis.
11 If any such payment provided for in this Section exceeds
12the taxpayer's liabilities under this Act, the Retailers'
13Occupation Tax Act, the Service Occupation Tax Act and the
14Service Use Tax Act, as shown by an original monthly return,
15the Department shall issue to the taxpayer a credit memorandum
16no later than 30 days after the date of payment, which
17memorandum may be submitted by the taxpayer to the Department
18in payment of tax liability subsequently to be remitted by the
19taxpayer to the Department or be assigned by the taxpayer to a
20similar taxpayer under this Act, the Retailers' Occupation Tax
21Act, the Service Occupation Tax Act or the Service Use Tax Act,
22in accordance with reasonable rules and regulations to be
23prescribed by the Department, except that if such excess
24payment is shown on an original monthly return and is made
25after December 31, 1986, no credit memorandum shall be issued,
26unless requested by the taxpayer. If no such request is made,

HB4987- 44 -LRB103 34737 HLH 64585 b
1the taxpayer may credit such excess payment against tax
2liability subsequently to be remitted by the taxpayer to the
3Department under this Act, the Retailers' Occupation Tax Act,
4the Service Occupation Tax Act or the Service Use Tax Act, in
5accordance with reasonable rules and regulations prescribed by
6the Department. If the Department subsequently determines that
7all or any part of the credit taken was not actually due to the
8taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
9be reduced by 2.1% or 1.75% of the difference between the
10credit taken and that actually due, and the taxpayer shall be
11liable for penalties and interest on such difference.
12 If the retailer is otherwise required to file a monthly
13return and if the retailer's average monthly tax liability to
14the Department does not exceed $200, the Department may
15authorize his returns to be filed on a quarter annual basis,
16with the return for January, February, and March of a given
17year being due by April 20 of such year; with the return for
18April, May and June of a given year being due by July 20 of
19such year; with the return for July, August and September of a
20given year being due by October 20 of such year, and with the
21return for October, November and December of a given year
22being due by January 20 of the following year.
23 If the retailer is otherwise required to file a monthly or
24quarterly return and if the retailer's average monthly tax
25liability to the Department does not exceed $50, the
26Department may authorize his returns to be filed on an annual

HB4987- 45 -LRB103 34737 HLH 64585 b
1basis, with the return for a given year being due by January 20
2of the following year.
3 Such quarter annual and annual returns, as to form and
4substance, shall be subject to the same requirements as
5monthly returns.
6 Notwithstanding any other provision in this Act concerning
7the time within which a retailer may file his return, in the
8case of any retailer who ceases to engage in a kind of business
9which makes him responsible for filing returns under this Act,
10such retailer shall file a final return under this Act with the
11Department not more than one month after discontinuing such
12business.
13 In addition, with respect to motor vehicles, watercraft,
14aircraft, and trailers that are required to be registered with
15an agency of this State, except as otherwise provided in this
16Section, every retailer selling this kind of tangible personal
17property shall file, with the Department, upon a form to be
18prescribed and supplied by the Department, a separate return
19for each such item of tangible personal property which the
20retailer sells, except that if, in the same transaction, (i) a
21retailer of aircraft, watercraft, motor vehicles or trailers
22transfers more than one aircraft, watercraft, motor vehicle or
23trailer to another aircraft, watercraft, motor vehicle or
24trailer retailer for the purpose of resale or (ii) a retailer
25of aircraft, watercraft, motor vehicles, or trailers transfers
26more than one aircraft, watercraft, motor vehicle, or trailer

HB4987- 46 -LRB103 34737 HLH 64585 b
1to a purchaser for use as a qualifying rolling stock as
2provided in Section 3-55 of this Act, then that seller may
3report the transfer of all the aircraft, watercraft, motor
4vehicles or trailers involved in that transaction to the
5Department on the same uniform invoice-transaction reporting
6return form. For purposes of this Section, "watercraft" means
7a Class 2, Class 3, or Class 4 watercraft as defined in Section
83-2 of the Boat Registration and Safety Act, a personal
9watercraft, or any boat equipped with an inboard motor.
10 In addition, with respect to motor vehicles, watercraft,
11aircraft, and trailers that are required to be registered with
12an agency of this State, every person who is engaged in the
13business of leasing or renting such items and who, in
14connection with such business, sells any such item to a
15retailer for the purpose of resale is, notwithstanding any
16other provision of this Section to the contrary, authorized to
17meet the return-filing requirement of this Act by reporting
18the transfer of all the aircraft, watercraft, motor vehicles,
19or trailers transferred for resale during a month to the
20Department on the same uniform invoice-transaction reporting
21return form on or before the 20th of the month following the
22month in which the transfer takes place. Notwithstanding any
23other provision of this Act to the contrary, all returns filed
24under this paragraph must be filed by electronic means in the
25manner and form as required by the Department.
26 The transaction reporting return in the case of motor

HB4987- 47 -LRB103 34737 HLH 64585 b
1vehicles or trailers that are required to be registered with
2an agency of this State, shall be the same document as the
3Uniform Invoice referred to in Section 5-402 of the Illinois
4Vehicle Code and must show the name and address of the seller;
5the name and address of the purchaser; the amount of the
6selling price including the amount allowed by the retailer for
7traded-in property, if any; the amount allowed by the retailer
8for the traded-in tangible personal property, if any, to the
9extent to which Section 2 of this Act allows an exemption for
10the value of traded-in property; the balance payable after
11deducting such trade-in allowance from the total selling
12price; the amount of tax due from the retailer with respect to
13such transaction; the amount of tax collected from the
14purchaser by the retailer on such transaction (or satisfactory
15evidence that such tax is not due in that particular instance,
16if that is claimed to be the fact); the place and date of the
17sale; a sufficient identification of the property sold; such
18other information as is required in Section 5-402 of the
19Illinois Vehicle Code, and such other information as the
20Department may reasonably require.
21 The transaction reporting return in the case of watercraft
22and aircraft must show the name and address of the seller; the
23name and address of the purchaser; the amount of the selling
24price including the amount allowed by the retailer for
25traded-in property, if any; the amount allowed by the retailer
26for the traded-in tangible personal property, if any, to the

HB4987- 48 -LRB103 34737 HLH 64585 b
1extent to which Section 2 of this Act allows an exemption for
2the value of traded-in property; the balance payable after
3deducting such trade-in allowance from the total selling
4price; the amount of tax due from the retailer with respect to
5such transaction; the amount of tax collected from the
6purchaser by the retailer on such transaction (or satisfactory
7evidence that such tax is not due in that particular instance,
8if that is claimed to be the fact); the place and date of the
9sale, a sufficient identification of the property sold, and
10such other information as the Department may reasonably
11require.
12 Such transaction reporting return shall be filed not later
13than 20 days after the date of delivery of the item that is
14being sold, but may be filed by the retailer at any time sooner
15than that if he chooses to do so. The transaction reporting
16return and tax remittance or proof of exemption from the tax
17that is imposed by this Act may be transmitted to the
18Department by way of the State agency with which, or State
19officer with whom, the tangible personal property must be
20titled or registered (if titling or registration is required)
21if the Department and such agency or State officer determine
22that this procedure will expedite the processing of
23applications for title or registration.
24 With each such transaction reporting return, the retailer
25shall remit the proper amount of tax due (or shall submit
26satisfactory evidence that the sale is not taxable if that is

HB4987- 49 -LRB103 34737 HLH 64585 b
1the case), to the Department or its agents, whereupon the
2Department shall issue, in the purchaser's name, a tax receipt
3(or a certificate of exemption if the Department is satisfied
4that the particular sale is tax exempt) which such purchaser
5may submit to the agency with which, or State officer with
6whom, he must title or register the tangible personal property
7that is involved (if titling or registration is required) in
8support of such purchaser's application for an Illinois
9certificate or other evidence of title or registration to such
10tangible personal property.
11 No retailer's failure or refusal to remit tax under this
12Act precludes a user, who has paid the proper tax to the
13retailer, from obtaining his certificate of title or other
14evidence of title or registration (if titling or registration
15is required) upon satisfying the Department that such user has
16paid the proper tax (if tax is due) to the retailer. The
17Department shall adopt appropriate rules to carry out the
18mandate of this paragraph.
19 If the user who would otherwise pay tax to the retailer
20wants the transaction reporting return filed and the payment
21of tax or proof of exemption made to the Department before the
22retailer is willing to take these actions and such user has not
23paid the tax to the retailer, such user may certify to the fact
24of such delay by the retailer, and may (upon the Department
25being satisfied of the truth of such certification) transmit
26the information required by the transaction reporting return

HB4987- 50 -LRB103 34737 HLH 64585 b
1and the remittance for tax or proof of exemption directly to
2the Department and obtain his tax receipt or exemption
3determination, in which event the transaction reporting return
4and tax remittance (if a tax payment was required) shall be
5credited by the Department to the proper retailer's account
6with the Department, but without the 2.1% or 1.75% discount
7provided for in this Section being allowed. When the user pays
8the tax directly to the Department, he shall pay the tax in the
9same amount and in the same form in which it would be remitted
10if the tax had been remitted to the Department by the retailer.
11 Where a retailer collects the tax with respect to the
12selling price of tangible personal property which he sells and
13the purchaser thereafter returns such tangible personal
14property and the retailer refunds the selling price thereof to
15the purchaser, such retailer shall also refund, to the
16purchaser, the tax so collected from the purchaser. When
17filing his return for the period in which he refunds such tax
18to the purchaser, the retailer may deduct the amount of the tax
19so refunded by him to the purchaser from any other use tax
20which such retailer may be required to pay or remit to the
21Department, as shown by such return, if the amount of the tax
22to be deducted was previously remitted to the Department by
23such retailer. If the retailer has not previously remitted the
24amount of such tax to the Department, he is entitled to no
25deduction under this Act upon refunding such tax to the
26purchaser.

HB4987- 51 -LRB103 34737 HLH 64585 b
1 Any retailer filing a return under this Section shall also
2include (for the purpose of paying tax thereon) the total tax
3covered by such return upon the selling price of tangible
4personal property purchased by him at retail from a retailer,
5but as to which the tax imposed by this Act was not collected
6from the retailer filing such return, and such retailer shall
7remit the amount of such tax to the Department when filing such
8return.
9 If experience indicates such action to be practicable, the
10Department may prescribe and furnish a combination or joint
11return which will enable retailers, who are required to file
12returns hereunder and also under the Retailers' Occupation Tax
13Act, to furnish all the return information required by both
14Acts on the one form.
15 Where the retailer has more than one business registered
16with the Department under separate registration under this
17Act, such retailer may not file each return that is due as a
18single return covering all such registered businesses, but
19shall file separate returns for each such registered business.
20 Beginning January 1, 1990, each month the Department shall
21pay into the State and Local Sales Tax Reform Fund, a special
22fund in the State Treasury which is hereby created, the net
23revenue realized for the preceding month from the 1% tax
24imposed under this Act.
25 Beginning August 1, 2024, each month the State Comptroller
26shall order transferred and the State Treasurer shall transfer

HB4987- 52 -LRB103 34737 HLH 64585 b
1from the General Revenue Fund to the State and Local Sales Tax
2Reform Fund an amount equal to the net revenue that would have
3been realized during the preceding month from sales of the
4items described in item (44) of Section 3-5 if the tax on those
5items had been imposed at the rate of 1%.
6 Beginning January 1, 1990, each month the Department shall
7pay into the County and Mass Transit District Fund 4% of the
8net revenue realized for the preceding month from the 6.25%
9general rate on the selling price of tangible personal
10property which is purchased outside Illinois at retail from a
11retailer and which is titled or registered by an agency of this
12State's government.
13 Beginning January 1, 1990, each month the Department shall
14pay into the State and Local Sales Tax Reform Fund, a special
15fund in the State Treasury, 20% of the net revenue realized for
16the preceding month from the 6.25% general rate on the selling
17price of tangible personal property, other than (i) tangible
18personal property which is purchased outside Illinois at
19retail from a retailer and which is titled or registered by an
20agency of this State's government and (ii) aviation fuel sold
21on or after December 1, 2019. This exception for aviation fuel
22only applies for so long as the revenue use requirements of 49
23U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
24 For aviation fuel sold on or after December 1, 2019, each
25month the Department shall pay into the State Aviation Program
26Fund 20% of the net revenue realized for the preceding month

HB4987- 53 -LRB103 34737 HLH 64585 b
1from the 6.25% general rate on the selling price of aviation
2fuel, less an amount estimated by the Department to be
3required for refunds of the 20% portion of the tax on aviation
4fuel under this Act, which amount shall be deposited into the
5Aviation Fuel Sales Tax Refund Fund. The Department shall only
6pay moneys into the State Aviation Program Fund and the
7Aviation Fuels Sales Tax Refund Fund under this Act for so long
8as the revenue use requirements of 49 U.S.C. 47107(b) and 49
9U.S.C. 47133 are binding on the State.
10 Beginning August 1, 2000, each month the Department shall
11pay into the State and Local Sales Tax Reform Fund 100% of the
12net revenue realized for the preceding month from the 1.25%
13rate on the selling price of motor fuel and gasohol. If, in any
14month, the tax on sales tax holiday items, as defined in
15Section 3-6, is imposed at the rate of 1.25%, then the
16Department shall pay 100% of the net revenue realized for that
17month from the 1.25% rate on the selling price of sales tax
18holiday items into the State and Local Sales Tax Reform Fund.
19 Beginning January 1, 1990, each month the Department shall
20pay into the Local Government Tax Fund 16% of the net revenue
21realized for the preceding month from the 6.25% general rate
22on the selling price of tangible personal property which is
23purchased outside Illinois at retail from a retailer and which
24is titled or registered by an agency of this State's
25government.
26 Beginning October 1, 2009, each month the Department shall

HB4987- 54 -LRB103 34737 HLH 64585 b
1pay into the Capital Projects Fund an amount that is equal to
2an amount estimated by the Department to represent 80% of the
3net revenue realized for the preceding month from the sale of
4candy, grooming and hygiene products, and soft drinks that had
5been taxed at a rate of 1% prior to September 1, 2009 but that
6are now taxed at 6.25%.
7 Beginning July 1, 2011, each month the Department shall
8pay into the Clean Air Act Permit Fund 80% of the net revenue
9realized for the preceding month from the 6.25% general rate
10on the selling price of sorbents used in Illinois in the
11process of sorbent injection as used to comply with the
12Environmental Protection Act or the federal Clean Air Act, but
13the total payment into the Clean Air Act Permit Fund under this
14Act and the Retailers' Occupation Tax Act shall not exceed
15$2,000,000 in any fiscal year.
16 Beginning July 1, 2013, each month the Department shall
17pay into the Underground Storage Tank Fund from the proceeds
18collected under this Act, the Service Use Tax Act, the Service
19Occupation Tax Act, and the Retailers' Occupation Tax Act an
20amount equal to the average monthly deficit in the Underground
21Storage Tank Fund during the prior year, as certified annually
22by the Illinois Environmental Protection Agency, but the total
23payment into the Underground Storage Tank Fund under this Act,
24the Service Use Tax Act, the Service Occupation Tax Act, and
25the Retailers' Occupation Tax Act shall not exceed $18,000,000
26in any State fiscal year. As used in this paragraph, the

HB4987- 55 -LRB103 34737 HLH 64585 b
1"average monthly deficit" shall be equal to the difference
2between the average monthly claims for payment by the fund and
3the average monthly revenues deposited into the fund,
4excluding payments made pursuant to this paragraph.
5 Beginning July 1, 2015, of the remainder of the moneys
6received by the Department under this Act, the Service Use Tax
7Act, the Service Occupation Tax Act, and the Retailers'
8Occupation Tax Act, each month the Department shall deposit
9$500,000 into the State Crime Laboratory Fund.
10 Of the remainder of the moneys received by the Department
11pursuant to this Act, (a) 1.75% thereof shall be paid into the
12Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
13and after July 1, 1989, 3.8% thereof shall be paid into the
14Build Illinois Fund; provided, however, that if in any fiscal
15year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
16may be, of the moneys received by the Department and required
17to be paid into the Build Illinois Fund pursuant to Section 3
18of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
19Act, Section 9 of the Service Use Tax Act, and Section 9 of the
20Service Occupation Tax Act, such Acts being hereinafter called
21the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
22may be, of moneys being hereinafter called the "Tax Act
23Amount", and (2) the amount transferred to the Build Illinois
24Fund from the State and Local Sales Tax Reform Fund shall be
25less than the Annual Specified Amount (as defined in Section 3
26of the Retailers' Occupation Tax Act), an amount equal to the

HB4987- 56 -LRB103 34737 HLH 64585 b
1difference shall be immediately paid into the Build Illinois
2Fund from other moneys received by the Department pursuant to
3the Tax Acts; and further provided, that if on the last
4business day of any month the sum of (1) the Tax Act Amount
5required to be deposited into the Build Illinois Bond Account
6in the Build Illinois Fund during such month and (2) the amount
7transferred during such month to the Build Illinois Fund from
8the State and Local Sales Tax Reform Fund shall have been less
9than 1/12 of the Annual Specified Amount, an amount equal to
10the difference shall be immediately paid into the Build
11Illinois Fund from other moneys received by the Department
12pursuant to the Tax Acts; and, further provided, that in no
13event shall the payments required under the preceding proviso
14result in aggregate payments into the Build Illinois Fund
15pursuant to this clause (b) for any fiscal year in excess of
16the greater of (i) the Tax Act Amount or (ii) the Annual
17Specified Amount for such fiscal year; and, further provided,
18that the amounts payable into the Build Illinois Fund under
19this clause (b) shall be payable only until such time as the
20aggregate amount on deposit under each trust indenture
21securing Bonds issued and outstanding pursuant to the Build
22Illinois Bond Act is sufficient, taking into account any
23future investment income, to fully provide, in accordance with
24such indenture, for the defeasance of or the payment of the
25principal of, premium, if any, and interest on the Bonds
26secured by such indenture and on any Bonds expected to be

HB4987- 57 -LRB103 34737 HLH 64585 b
1issued thereafter and all fees and costs payable with respect
2thereto, all as certified by the Director of the Bureau of the
3Budget (now Governor's Office of Management and Budget). If on
4the last business day of any month in which Bonds are
5outstanding pursuant to the Build Illinois Bond Act, the
6aggregate of the moneys deposited in the Build Illinois Bond
7Account in the Build Illinois Fund in such month shall be less
8than the amount required to be transferred in such month from
9the Build Illinois Bond Account to the Build Illinois Bond
10Retirement and Interest Fund pursuant to Section 13 of the
11Build Illinois Bond Act, an amount equal to such deficiency
12shall be immediately paid from other moneys received by the
13Department pursuant to the Tax Acts to the Build Illinois
14Fund; provided, however, that any amounts paid to the Build
15Illinois Fund in any fiscal year pursuant to this sentence
16shall be deemed to constitute payments pursuant to clause (b)
17of the preceding sentence and shall reduce the amount
18otherwise payable for such fiscal year pursuant to clause (b)
19of the preceding sentence. The moneys received by the
20Department pursuant to this Act and required to be deposited
21into the Build Illinois Fund are subject to the pledge, claim
22and charge set forth in Section 12 of the Build Illinois Bond
23Act.
24 Subject to payment of amounts into the Build Illinois Fund
25as provided in the preceding paragraph or in any amendment
26thereto hereafter enacted, the following specified monthly

HB4987- 58 -LRB103 34737 HLH 64585 b
1installment of the amount requested in the certificate of the
2Chairman of the Metropolitan Pier and Exposition Authority
3provided under Section 8.25f of the State Finance Act, but not
4in excess of the sums designated as "Total Deposit", shall be
5deposited in the aggregate from collections under Section 9 of
6the Use Tax Act, Section 9 of the Service Use Tax Act, Section
79 of the Service Occupation Tax Act, and Section 3 of the
8Retailers' Occupation Tax Act into the McCormick Place
9Expansion Project Fund in the specified fiscal years.
10Fiscal YearTotal Deposit
111993 $0
121994 53,000,000
131995 58,000,000
141996 61,000,000
151997 64,000,000
161998 68,000,000
171999 71,000,000
182000 75,000,000
192001 80,000,000
202002 93,000,000
212003 99,000,000
222004103,000,000
232005108,000,000
242006113,000,000
252007119,000,000
262008126,000,000

HB4987- 59 -LRB103 34737 HLH 64585 b
12009132,000,000
22010139,000,000
32011146,000,000
42012153,000,000
52013161,000,000
62014170,000,000
72015179,000,000
82016189,000,000
92017199,000,000
102018210,000,000
112019221,000,000
122020233,000,000
132021300,000,000
142022300,000,000
152023300,000,000
162024 300,000,000
172025 300,000,000
182026 300,000,000
192027 375,000,000
202028 375,000,000
212029 375,000,000
222030 375,000,000
232031 375,000,000
242032 375,000,000
252033 375,000,000
262034375,000,000

HB4987- 60 -LRB103 34737 HLH 64585 b
12035375,000,000
22036450,000,000
3and
4each fiscal year
5thereafter that bonds
6are outstanding under
7Section 13.2 of the
8Metropolitan Pier and
9Exposition Authority Act,
10but not after fiscal year 2060.
11 Beginning July 20, 1993 and in each month of each fiscal
12year thereafter, one-eighth of the amount requested in the
13certificate of the Chairman of the Metropolitan Pier and
14Exposition Authority for that fiscal year, less the amount
15deposited into the McCormick Place Expansion Project Fund by
16the State Treasurer in the respective month under subsection
17(g) of Section 13 of the Metropolitan Pier and Exposition
18Authority Act, plus cumulative deficiencies in the deposits
19required under this Section for previous months and years,
20shall be deposited into the McCormick Place Expansion Project
21Fund, until the full amount requested for the fiscal year, but
22not in excess of the amount specified above as "Total
23Deposit", has been deposited.
24 Subject to payment of amounts into the Capital Projects
25Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
26and the McCormick Place Expansion Project Fund pursuant to the

HB4987- 61 -LRB103 34737 HLH 64585 b
1preceding paragraphs or in any amendments thereto hereafter
2enacted, for aviation fuel sold on or after December 1, 2019,
3the Department shall each month deposit into the Aviation Fuel
4Sales Tax Refund Fund an amount estimated by the Department to
5be required for refunds of the 80% portion of the tax on
6aviation fuel under this Act. The Department shall only
7deposit moneys into the Aviation Fuel Sales Tax Refund Fund
8under this paragraph for so long as the revenue use
9requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
10binding on the State.
11 Subject to payment of amounts into the Build Illinois Fund
12and the McCormick Place Expansion Project Fund pursuant to the
13preceding paragraphs or in any amendments thereto hereafter
14enacted, beginning July 1, 1993 and ending on September 30,
152013, the Department shall each month pay into the Illinois
16Tax Increment Fund 0.27% of 80% of the net revenue realized for
17the preceding month from the 6.25% general rate on the selling
18price of tangible personal property.
19 Subject to payment of amounts into the Build Illinois
20Fund, the McCormick Place Expansion Project Fund, the Illinois
21Tax Increment Fund, and the Energy Infrastructure Fund
22pursuant to the preceding paragraphs or in any amendments to
23this Section hereafter enacted, beginning on the first day of
24the first calendar month to occur on or after August 26, 2014
25(the effective date of Public Act 98-1098), each month, from
26the collections made under Section 9 of the Use Tax Act,

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1Section 9 of the Service Use Tax Act, Section 9 of the Service
2Occupation Tax Act, and Section 3 of the Retailers' Occupation
3Tax Act, the Department shall pay into the Tax Compliance and
4Administration Fund, to be used, subject to appropriation, to
5fund additional auditors and compliance personnel at the
6Department of Revenue, an amount equal to 1/12 of 5% of 80% of
7the cash receipts collected during the preceding fiscal year
8by the Audit Bureau of the Department under the Use Tax Act,
9the Service Use Tax Act, the Service Occupation Tax Act, the
10Retailers' Occupation Tax Act, and associated local occupation
11and use taxes administered by the Department.
12 Subject to payments of amounts into the Build Illinois
13Fund, the McCormick Place Expansion Project Fund, the Illinois
14Tax Increment Fund, and the Tax Compliance and Administration
15Fund as provided in this Section, beginning on July 1, 2018 the
16Department shall pay each month into the Downstate Public
17Transportation Fund the moneys required to be so paid under
18Section 2-3 of the Downstate Public Transportation Act.
19 Subject to successful execution and delivery of a
20public-private agreement between the public agency and private
21entity and completion of the civic build, beginning on July 1,
222023, of the remainder of the moneys received by the
23Department under the Use Tax Act, the Service Use Tax Act, the
24Service Occupation Tax Act, and this Act, the Department shall
25deposit the following specified deposits in the aggregate from
26collections under the Use Tax Act, the Service Use Tax Act, the

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1Service Occupation Tax Act, and the Retailers' Occupation Tax
2Act, as required under Section 8.25g of the State Finance Act
3for distribution consistent with the Public-Private
4Partnership for Civic and Transit Infrastructure Project Act.
5The moneys received by the Department pursuant to this Act and
6required to be deposited into the Civic and Transit
7Infrastructure Fund are subject to the pledge, claim, and
8charge set forth in Section 25-55 of the Public-Private
9Partnership for Civic and Transit Infrastructure Project Act.
10As used in this paragraph, "civic build", "private entity",
11"public-private agreement", and "public agency" have the
12meanings provided in Section 25-10 of the Public-Private
13Partnership for Civic and Transit Infrastructure Project Act.
14 Fiscal Year............................Total Deposit
15 2024....................................$200,000,000
16 2025....................................$206,000,000
17 2026....................................$212,200,000
18 2027....................................$218,500,000
19 2028....................................$225,100,000
20 2029....................................$288,700,000
21 2030....................................$298,900,000
22 2031....................................$309,300,000
23 2032....................................$320,100,000
24 2033....................................$331,200,000
25 2034....................................$341,200,000
26 2035....................................$351,400,000

HB4987- 64 -LRB103 34737 HLH 64585 b
1 2036....................................$361,900,000
2 2037....................................$372,800,000
3 2038....................................$384,000,000
4 2039....................................$395,500,000
5 2040....................................$407,400,000
6 2041....................................$419,600,000
7 2042....................................$432,200,000
8 2043....................................$445,100,000
9 Beginning July 1, 2021 and until July 1, 2022, subject to
10the payment of amounts into the State and Local Sales Tax
11Reform Fund, the Build Illinois Fund, the McCormick Place
12Expansion Project Fund, the Illinois Tax Increment Fund, and
13the Tax Compliance and Administration Fund as provided in this
14Section, the Department shall pay each month into the Road
15Fund the amount estimated to represent 16% of the net revenue
16realized from the taxes imposed on motor fuel and gasohol.
17Beginning July 1, 2022 and until July 1, 2023, subject to the
18payment of amounts into the State and Local Sales Tax Reform
19Fund, the Build Illinois Fund, the McCormick Place Expansion
20Project Fund, the Illinois Tax Increment Fund, and the Tax
21Compliance and Administration Fund as provided in this
22Section, the Department shall pay each month into the Road
23Fund the amount estimated to represent 32% of the net revenue
24realized from the taxes imposed on motor fuel and gasohol.
25Beginning July 1, 2023 and until July 1, 2024, subject to the
26payment of amounts into the State and Local Sales Tax Reform

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1Fund, the Build Illinois Fund, the McCormick Place Expansion
2Project Fund, the Illinois Tax Increment Fund, and the Tax
3Compliance and Administration Fund as provided in this
4Section, the Department shall pay each month into the Road
5Fund the amount estimated to represent 48% of the net revenue
6realized from the taxes imposed on motor fuel and gasohol.
7Beginning July 1, 2024 and until July 1, 2025, subject to the
8payment of amounts into the State and Local Sales Tax Reform
9Fund, the Build Illinois Fund, the McCormick Place Expansion
10Project Fund, the Illinois Tax Increment Fund, and the Tax
11Compliance and Administration Fund as provided in this
12Section, the Department shall pay each month into the Road
13Fund the amount estimated to represent 64% of the net revenue
14realized from the taxes imposed on motor fuel and gasohol.
15Beginning on July 1, 2025, subject to the payment of amounts
16into the State and Local Sales Tax Reform Fund, the Build
17Illinois Fund, the McCormick Place Expansion Project Fund, the
18Illinois Tax Increment Fund, and the Tax Compliance and
19Administration Fund as provided in this Section, the
20Department shall pay each month into the Road Fund the amount
21estimated to represent 80% of the net revenue realized from
22the taxes imposed on motor fuel and gasohol. As used in this
23paragraph "motor fuel" has the meaning given to that term in
24Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the
25meaning given to that term in Section 3-40 of this Act.
26 Of the remainder of the moneys received by the Department

HB4987- 66 -LRB103 34737 HLH 64585 b
1pursuant to this Act, 75% thereof shall be paid into the State
2Treasury and 25% shall be reserved in a special account and
3used only for the transfer to the Common School Fund as part of
4the monthly transfer from the General Revenue Fund in
5accordance with Section 8a of the State Finance Act.
6 As soon as possible after the first day of each month, upon
7certification of the Department of Revenue, the Comptroller
8shall order transferred and the Treasurer shall transfer from
9the General Revenue Fund to the Motor Fuel Tax Fund an amount
10equal to 1.7% of 80% of the net revenue realized under this Act
11for the second preceding month. Beginning April 1, 2000, this
12transfer is no longer required and shall not be made.
13 Net revenue realized for a month shall be the revenue
14collected by the State pursuant to this Act, less the amount
15paid out during that month as refunds to taxpayers for
16overpayment of liability.
17 For greater simplicity of administration, manufacturers,
18importers and wholesalers whose products are sold at retail in
19Illinois by numerous retailers, and who wish to do so, may
20assume the responsibility for accounting and paying to the
21Department all tax accruing under this Act with respect to
22such sales, if the retailers who are affected do not make
23written objection to the Department to this arrangement.
24(Source: P.A. 102-700, Article 60, Section 60-15, eff.
254-19-22; 102-700, Article 65, Section 65-5, eff. 4-19-22;
26102-1019, eff. 1-1-23; 103-154, eff. 6-30-23; 103-363, eff.

HB4987- 67 -LRB103 34737 HLH 64585 b
17-28-23.)
2 Section 15. The Service Use Tax Act is amended by changing
3Sections 3-5, 3-10, and 9 as follows:
4 (35 ILCS 110/3-5)
5 Sec. 3-5. Exemptions. Use of the following tangible
6personal property is exempt from the tax imposed by this Act:
7 (1) Personal property purchased from a corporation,
8society, association, foundation, institution, or
9organization, other than a limited liability company, that is
10organized and operated as a not-for-profit service enterprise
11for the benefit of persons 65 years of age or older if the
12personal property was not purchased by the enterprise for the
13purpose of resale by the enterprise.
14 (2) Personal property purchased by a non-profit Illinois
15county fair association for use in conducting, operating, or
16promoting the county fair.
17 (3) Personal property purchased by a not-for-profit arts
18or cultural organization that establishes, by proof required
19by the Department by rule, that it has received an exemption
20under Section 501(c)(3) of the Internal Revenue Code and that
21is organized and operated primarily for the presentation or
22support of arts or cultural programming, activities, or
23services. These organizations include, but are not limited to,
24music and dramatic arts organizations such as symphony

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1orchestras and theatrical groups, arts and cultural service
2organizations, local arts councils, visual arts organizations,
3and media arts organizations. On and after July 1, 2001 (the
4effective date of Public Act 92-35), however, an entity
5otherwise eligible for this exemption shall not make tax-free
6purchases unless it has an active identification number issued
7by the Department.
8 (4) Legal tender, currency, medallions, or gold or silver
9coinage issued by the State of Illinois, the government of the
10United States of America, or the government of any foreign
11country, and bullion.
12 (5) Until July 1, 2003 and beginning again on September 1,
132004 through August 30, 2014, graphic arts machinery and
14equipment, including repair and replacement parts, both new
15and used, and including that manufactured on special order or
16purchased for lease, certified by the purchaser to be used
17primarily for graphic arts production. Equipment includes
18chemicals or chemicals acting as catalysts but only if the
19chemicals or chemicals acting as catalysts effect a direct and
20immediate change upon a graphic arts product. Beginning on
21July 1, 2017, graphic arts machinery and equipment is included
22in the manufacturing and assembling machinery and equipment
23exemption under Section 2 of this Act.
24 (6) Personal property purchased from a teacher-sponsored
25student organization affiliated with an elementary or
26secondary school located in Illinois.

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1 (7) Farm machinery and equipment, both new and used,
2including that manufactured on special order, certified by the
3purchaser to be used primarily for production agriculture or
4State or federal agricultural programs, including individual
5replacement parts for the machinery and equipment, including
6machinery and equipment purchased for lease, and including
7implements of husbandry defined in Section 1-130 of the
8Illinois Vehicle Code, farm machinery and agricultural
9chemical and fertilizer spreaders, and nurse wagons required
10to be registered under Section 3-809 of the Illinois Vehicle
11Code, but excluding other motor vehicles required to be
12registered under the Illinois Vehicle Code. Horticultural
13polyhouses or hoop houses used for propagating, growing, or
14overwintering plants shall be considered farm machinery and
15equipment under this item (7). Agricultural chemical tender
16tanks and dry boxes shall include units sold separately from a
17motor vehicle required to be licensed and units sold mounted
18on a motor vehicle required to be licensed if the selling price
19of the tender is separately stated.
20 Farm machinery and equipment shall include precision
21farming equipment that is installed or purchased to be
22installed on farm machinery and equipment, including, but not
23limited to, tractors, harvesters, sprayers, planters, seeders,
24or spreaders. Precision farming equipment includes, but is not
25limited to, soil testing sensors, computers, monitors,
26software, global positioning and mapping systems, and other

HB4987- 70 -LRB103 34737 HLH 64585 b
1such equipment.
2 Farm machinery and equipment also includes computers,
3sensors, software, and related equipment used primarily in the
4computer-assisted operation of production agriculture
5facilities, equipment, and activities such as, but not limited
6to, the collection, monitoring, and correlation of animal and
7crop data for the purpose of formulating animal diets and
8agricultural chemicals.
9 Beginning on January 1, 2024, farm machinery and equipment
10also includes electrical power generation equipment used
11primarily for production agriculture.
12 This item (7) is exempt from the provisions of Section
133-75.
14 (8) Until June 30, 2013, fuel and petroleum products sold
15to or used by an air common carrier, certified by the carrier
16to be used for consumption, shipment, or storage in the
17conduct of its business as an air common carrier, for a flight
18destined for or returning from a location or locations outside
19the United States without regard to previous or subsequent
20domestic stopovers.
21 Beginning July 1, 2013, fuel and petroleum products sold
22to or used by an air carrier, certified by the carrier to be
23used for consumption, shipment, or storage in the conduct of
24its business as an air common carrier, for a flight that (i) is
25engaged in foreign trade or is engaged in trade between the
26United States and any of its possessions and (ii) transports

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1at least one individual or package for hire from the city of
2origination to the city of final destination on the same
3aircraft, without regard to a change in the flight number of
4that aircraft.
5 (9) Proceeds of mandatory service charges separately
6stated on customers' bills for the purchase and consumption of
7food and beverages acquired as an incident to the purchase of a
8service from a serviceman, to the extent that the proceeds of
9the service charge are in fact turned over as tips or as a
10substitute for tips to the employees who participate directly
11in preparing, serving, hosting or cleaning up the food or
12beverage function with respect to which the service charge is
13imposed.
14 (10) Until July 1, 2003, oil field exploration, drilling,
15and production equipment, including (i) rigs and parts of
16rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
17pipe and tubular goods, including casing and drill strings,
18(iii) pumps and pump-jack units, (iv) storage tanks and flow
19lines, (v) any individual replacement part for oil field
20exploration, drilling, and production equipment, and (vi)
21machinery and equipment purchased for lease; but excluding
22motor vehicles required to be registered under the Illinois
23Vehicle Code.
24 (11) Proceeds from the sale of photoprocessing machinery
25and equipment, including repair and replacement parts, both
26new and used, including that manufactured on special order,

HB4987- 72 -LRB103 34737 HLH 64585 b
1certified by the purchaser to be used primarily for
2photoprocessing, and including photoprocessing machinery and
3equipment purchased for lease.
4 (12) Until July 1, 2028, coal and aggregate exploration,
5mining, off-highway hauling, processing, maintenance, and
6reclamation equipment, including replacement parts and
7equipment, and including equipment purchased for lease, but
8excluding motor vehicles required to be registered under the
9Illinois Vehicle Code. The changes made to this Section by
10Public Act 97-767 apply on and after July 1, 2003, but no claim
11for credit or refund is allowed on or after August 16, 2013
12(the effective date of Public Act 98-456) for such taxes paid
13during the period beginning July 1, 2003 and ending on August
1416, 2013 (the effective date of Public Act 98-456).
15 (13) Semen used for artificial insemination of livestock
16for direct agricultural production.
17 (14) Horses, or interests in horses, registered with and
18meeting the requirements of any of the Arabian Horse Club
19Registry of America, Appaloosa Horse Club, American Quarter
20Horse Association, United States Trotting Association, or
21Jockey Club, as appropriate, used for purposes of breeding or
22racing for prizes. This item (14) is exempt from the
23provisions of Section 3-75, and the exemption provided for
24under this item (14) applies for all periods beginning May 30,
251995, but no claim for credit or refund is allowed on or after
26January 1, 2008 (the effective date of Public Act 95-88) for

HB4987- 73 -LRB103 34737 HLH 64585 b
1such taxes paid during the period beginning May 30, 2000 and
2ending on January 1, 2008 (the effective date of Public Act
395-88).
4 (15) Computers and communications equipment utilized for
5any hospital purpose and equipment used in the diagnosis,
6analysis, or treatment of hospital patients purchased by a
7lessor who leases the equipment, under a lease of one year or
8longer executed or in effect at the time the lessor would
9otherwise be subject to the tax imposed by this Act, to a
10hospital that has been issued an active tax exemption
11identification number by the Department under Section 1g of
12the Retailers' Occupation Tax Act. If the equipment is leased
13in a manner that does not qualify for this exemption or is used
14in any other non-exempt manner, the lessor shall be liable for
15the tax imposed under this Act or the Use Tax Act, as the case
16may be, based on the fair market value of the property at the
17time the non-qualifying use occurs. No lessor shall collect or
18attempt to collect an amount (however designated) that
19purports to reimburse that lessor for the tax imposed by this
20Act or the Use Tax Act, as the case may be, if the tax has not
21been paid by the lessor. If a lessor improperly collects any
22such amount from the lessee, the lessee shall have a legal
23right to claim a refund of that amount from the lessor. If,
24however, that amount is not refunded to the lessee for any
25reason, the lessor is liable to pay that amount to the
26Department.

HB4987- 74 -LRB103 34737 HLH 64585 b
1 (16) Personal property purchased by a lessor who leases
2the property, under a lease of one year or longer executed or
3in effect at the time the lessor would otherwise be subject to
4the tax imposed by this Act, to a governmental body that has
5been issued an active tax exemption identification number by
6the Department under Section 1g of the Retailers' Occupation
7Tax Act. If the property is leased in a manner that does not
8qualify for this exemption or is used in any other non-exempt
9manner, the lessor shall be liable for the tax imposed under
10this Act or the Use Tax Act, as the case may be, based on the
11fair market value of the property at the time the
12non-qualifying use occurs. No lessor shall collect or attempt
13to collect an amount (however designated) that purports to
14reimburse that lessor for the tax imposed by this Act or the
15Use Tax Act, as the case may be, if the tax has not been paid
16by the lessor. If a lessor improperly collects any such amount
17from the lessee, the lessee shall have a legal right to claim a
18refund of that amount from the lessor. If, however, that
19amount is not refunded to the lessee for any reason, the lessor
20is liable to pay that amount to the Department.
21 (17) Beginning with taxable years ending on or after
22December 31, 1995 and ending with taxable years ending on or
23before December 31, 2004, personal property that is donated
24for disaster relief to be used in a State or federally declared
25disaster area in Illinois or bordering Illinois by a
26manufacturer or retailer that is registered in this State to a

HB4987- 75 -LRB103 34737 HLH 64585 b
1corporation, society, association, foundation, or institution
2that has been issued a sales tax exemption identification
3number by the Department that assists victims of the disaster
4who reside within the declared disaster area.
5 (18) Beginning with taxable years ending on or after
6December 31, 1995 and ending with taxable years ending on or
7before December 31, 2004, personal property that is used in
8the performance of infrastructure repairs in this State,
9including, but not limited to, municipal roads and streets,
10access roads, bridges, sidewalks, waste disposal systems,
11water and sewer line extensions, water distribution and
12purification facilities, storm water drainage and retention
13facilities, and sewage treatment facilities, resulting from a
14State or federally declared disaster in Illinois or bordering
15Illinois when such repairs are initiated on facilities located
16in the declared disaster area within 6 months after the
17disaster.
18 (19) Beginning July 1, 1999, game or game birds purchased
19at a "game breeding and hunting preserve area" as that term is
20used in the Wildlife Code. This paragraph is exempt from the
21provisions of Section 3-75.
22 (20) A motor vehicle, as that term is defined in Section
231-146 of the Illinois Vehicle Code, that is donated to a
24corporation, limited liability company, society, association,
25foundation, or institution that is determined by the
26Department to be organized and operated exclusively for

HB4987- 76 -LRB103 34737 HLH 64585 b
1educational purposes. For purposes of this exemption, "a
2corporation, limited liability company, society, association,
3foundation, or institution organized and operated exclusively
4for educational purposes" means all tax-supported public
5schools, private schools that offer systematic instruction in
6useful branches of learning by methods common to public
7schools and that compare favorably in their scope and
8intensity with the course of study presented in tax-supported
9schools, and vocational or technical schools or institutes
10organized and operated exclusively to provide a course of
11study of not less than 6 weeks duration and designed to prepare
12individuals to follow a trade or to pursue a manual,
13technical, mechanical, industrial, business, or commercial
14occupation.
15 (21) Beginning January 1, 2000, personal property,
16including food, purchased through fundraising events for the
17benefit of a public or private elementary or secondary school,
18a group of those schools, or one or more school districts if
19the events are sponsored by an entity recognized by the school
20district that consists primarily of volunteers and includes
21parents and teachers of the school children. This paragraph
22does not apply to fundraising events (i) for the benefit of
23private home instruction or (ii) for which the fundraising
24entity purchases the personal property sold at the events from
25another individual or entity that sold the property for the
26purpose of resale by the fundraising entity and that profits

HB4987- 77 -LRB103 34737 HLH 64585 b
1from the sale to the fundraising entity. This paragraph is
2exempt from the provisions of Section 3-75.
3 (22) Beginning January 1, 2000 and through December 31,
42001, new or used automatic vending machines that prepare and
5serve hot food and beverages, including coffee, soup, and
6other items, and replacement parts for these machines.
7Beginning January 1, 2002 and through June 30, 2003, machines
8and parts for machines used in commercial, coin-operated
9amusement and vending business if a use or occupation tax is
10paid on the gross receipts derived from the use of the
11commercial, coin-operated amusement and vending machines. This
12paragraph is exempt from the provisions of Section 3-75.
13 (23) Beginning August 23, 2001 and through June 30, 2016,
14food for human consumption that is to be consumed off the
15premises where it is sold (other than alcoholic beverages,
16soft drinks, and food that has been prepared for immediate
17consumption) and prescription and nonprescription medicines,
18drugs, medical appliances, and insulin, urine testing
19materials, syringes, and needles used by diabetics, for human
20use, when purchased for use by a person receiving medical
21assistance under Article V of the Illinois Public Aid Code who
22resides in a licensed long-term care facility, as defined in
23the Nursing Home Care Act, or in a licensed facility as defined
24in the ID/DD Community Care Act, the MC/DD Act, or the
25Specialized Mental Health Rehabilitation Act of 2013.
26 (24) Beginning on August 2, 2001 (the effective date of

HB4987- 78 -LRB103 34737 HLH 64585 b
1Public Act 92-227), computers and communications equipment
2utilized for any hospital purpose and equipment used in the
3diagnosis, analysis, or treatment of hospital patients
4purchased by a lessor who leases the equipment, under a lease
5of one year or longer executed or in effect at the time the
6lessor would otherwise be subject to the tax imposed by this
7Act, to a hospital that has been issued an active tax exemption
8identification number by the Department under Section 1g of
9the Retailers' Occupation Tax Act. If the equipment is leased
10in a manner that does not qualify for this exemption or is used
11in any other nonexempt manner, the lessor shall be liable for
12the tax imposed under this Act or the Use Tax Act, as the case
13may be, based on the fair market value of the property at the
14time the nonqualifying use occurs. No lessor shall collect or
15attempt to collect an amount (however designated) that
16purports to reimburse that lessor for the tax imposed by this
17Act or the Use Tax Act, as the case may be, if the tax has not
18been paid by the lessor. If a lessor improperly collects any
19such amount from the lessee, the lessee shall have a legal
20right to claim a refund of that amount from the lessor. If,
21however, that amount is not refunded to the lessee for any
22reason, the lessor is liable to pay that amount to the
23Department. This paragraph is exempt from the provisions of
24Section 3-75.
25 (25) Beginning on August 2, 2001 (the effective date of
26Public Act 92-227), personal property purchased by a lessor

HB4987- 79 -LRB103 34737 HLH 64585 b
1who leases the property, under a lease of one year or longer
2executed or in effect at the time the lessor would otherwise be
3subject to the tax imposed by this Act, to a governmental body
4that has been issued an active tax exemption identification
5number by the Department under Section 1g of the Retailers'
6Occupation Tax Act. If the property is leased in a manner that
7does not qualify for this exemption or is used in any other
8nonexempt manner, the lessor shall be liable for the tax
9imposed under this Act or the Use Tax Act, as the case may be,
10based on the fair market value of the property at the time the
11nonqualifying use occurs. No lessor shall collect or attempt
12to collect an amount (however designated) that purports to
13reimburse that lessor for the tax imposed by this Act or the
14Use Tax Act, as the case may be, if the tax has not been paid
15by the lessor. If a lessor improperly collects any such amount
16from the lessee, the lessee shall have a legal right to claim a
17refund of that amount from the lessor. If, however, that
18amount is not refunded to the lessee for any reason, the lessor
19is liable to pay that amount to the Department. This paragraph
20is exempt from the provisions of Section 3-75.
21 (26) Beginning January 1, 2008, tangible personal property
22used in the construction or maintenance of a community water
23supply, as defined under Section 3.145 of the Environmental
24Protection Act, that is operated by a not-for-profit
25corporation that holds a valid water supply permit issued
26under Title IV of the Environmental Protection Act. This

HB4987- 80 -LRB103 34737 HLH 64585 b
1paragraph is exempt from the provisions of Section 3-75.
2 (27) Beginning January 1, 2010 and continuing through
3December 31, 2029, materials, parts, equipment, components,
4and furnishings incorporated into or upon an aircraft as part
5of the modification, refurbishment, completion, replacement,
6repair, or maintenance of the aircraft. This exemption
7includes consumable supplies used in the modification,
8refurbishment, completion, replacement, repair, and
9maintenance of aircraft. However, until January 1, 2024, this
10exemption excludes any materials, parts, equipment,
11components, and consumable supplies used in the modification,
12replacement, repair, and maintenance of aircraft engines or
13power plants, whether such engines or power plants are
14installed or uninstalled upon any such aircraft. "Consumable
15supplies" include, but are not limited to, adhesive, tape,
16sandpaper, general purpose lubricants, cleaning solution,
17latex gloves, and protective films.
18 Beginning January 1, 2010 and continuing through December
1931, 2023, this exemption applies only to the use of qualifying
20tangible personal property transferred incident to the
21modification, refurbishment, completion, replacement, repair,
22or maintenance of aircraft by persons who (i) hold an Air
23Agency Certificate and are empowered to operate an approved
24repair station by the Federal Aviation Administration, (ii)
25have a Class IV Rating, and (iii) conduct operations in
26accordance with Part 145 of the Federal Aviation Regulations.

HB4987- 81 -LRB103 34737 HLH 64585 b
1From January 1, 2024 through December 31, 2029, this exemption
2applies only to the use of qualifying tangible personal
3property by: (A) persons who modify, refurbish, complete,
4repair, replace, or maintain aircraft and who (i) hold an Air
5Agency Certificate and are empowered to operate an approved
6repair station by the Federal Aviation Administration, (ii)
7have a Class IV Rating, and (iii) conduct operations in
8accordance with Part 145 of the Federal Aviation Regulations;
9and (B) persons who engage in the modification, replacement,
10repair, and maintenance of aircraft engines or power plants
11without regard to whether or not those persons meet the
12qualifications of item (A).
13 The exemption does not include aircraft operated by a
14commercial air carrier providing scheduled passenger air
15service pursuant to authority issued under Part 121 or Part
16129 of the Federal Aviation Regulations. The changes made to
17this paragraph (27) by Public Act 98-534 are declarative of
18existing law. It is the intent of the General Assembly that the
19exemption under this paragraph (27) applies continuously from
20January 1, 2010 through December 31, 2024; however, no claim
21for credit or refund is allowed for taxes paid as a result of
22the disallowance of this exemption on or after January 1, 2015
23and prior to February 5, 2020 (the effective date of Public Act
24101-629).
25 (28) Tangible personal property purchased by a
26public-facilities corporation, as described in Section

HB4987- 82 -LRB103 34737 HLH 64585 b
111-65-10 of the Illinois Municipal Code, for purposes of
2constructing or furnishing a municipal convention hall, but
3only if the legal title to the municipal convention hall is
4transferred to the municipality without any further
5consideration by or on behalf of the municipality at the time
6of the completion of the municipal convention hall or upon the
7retirement or redemption of any bonds or other debt
8instruments issued by the public-facilities corporation in
9connection with the development of the municipal convention
10hall. This exemption includes existing public-facilities
11corporations as provided in Section 11-65-25 of the Illinois
12Municipal Code. This paragraph is exempt from the provisions
13of Section 3-75.
14 (29) Beginning January 1, 2017 and through December 31,
152026, menstrual pads, tampons, and menstrual cups.
16 (30) Tangible personal property transferred to a purchaser
17who is exempt from the tax imposed by this Act by operation of
18federal law. This paragraph is exempt from the provisions of
19Section 3-75.
20 (31) Qualified tangible personal property used in the
21construction or operation of a data center that has been
22granted a certificate of exemption by the Department of
23Commerce and Economic Opportunity, whether that tangible
24personal property is purchased by the owner, operator, or
25tenant of the data center or by a contractor or subcontractor
26of the owner, operator, or tenant. Data centers that would

HB4987- 83 -LRB103 34737 HLH 64585 b
1have qualified for a certificate of exemption prior to January
21, 2020 had Public Act 101-31 been in effect, may apply for and
3obtain an exemption for subsequent purchases of computer
4equipment or enabling software purchased or leased to upgrade,
5supplement, or replace computer equipment or enabling software
6purchased or leased in the original investment that would have
7qualified.
8 The Department of Commerce and Economic Opportunity shall
9grant a certificate of exemption under this item (31) to
10qualified data centers as defined by Section 605-1025 of the
11Department of Commerce and Economic Opportunity Law of the
12Civil Administrative Code of Illinois.
13 For the purposes of this item (31):
14 "Data center" means a building or a series of
15 buildings rehabilitated or constructed to house working
16 servers in one physical location or multiple sites within
17 the State of Illinois.
18 "Qualified tangible personal property" means:
19 electrical systems and equipment; climate control and
20 chilling equipment and systems; mechanical systems and
21 equipment; monitoring and secure systems; emergency
22 generators; hardware; computers; servers; data storage
23 devices; network connectivity equipment; racks; cabinets;
24 telecommunications cabling infrastructure; raised floor
25 systems; peripheral components or systems; software;
26 mechanical, electrical, or plumbing systems; battery

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1 systems; cooling systems and towers; temperature control
2 systems; other cabling; and other data center
3 infrastructure equipment and systems necessary to operate
4 qualified tangible personal property, including fixtures;
5 and component parts of any of the foregoing, including
6 installation, maintenance, repair, refurbishment, and
7 replacement of qualified tangible personal property to
8 generate, transform, transmit, distribute, or manage
9 electricity necessary to operate qualified tangible
10 personal property; and all other tangible personal
11 property that is essential to the operations of a computer
12 data center. The term "qualified tangible personal
13 property" also includes building materials physically
14 incorporated into in to the qualifying data center. To
15 document the exemption allowed under this Section, the
16 retailer must obtain from the purchaser a copy of the
17 certificate of eligibility issued by the Department of
18 Commerce and Economic Opportunity.
19 This item (31) is exempt from the provisions of Section
203-75.
21 (32) Beginning July 1, 2022, breast pumps, breast pump
22collection and storage supplies, and breast pump kits. This
23item (32) is exempt from the provisions of Section 3-75. As
24used in this item (32):
25 "Breast pump" means an electrically controlled or
26 manually controlled pump device designed or marketed to be

HB4987- 85 -LRB103 34737 HLH 64585 b
1 used to express milk from a human breast during lactation,
2 including the pump device and any battery, AC adapter, or
3 other power supply unit that is used to power the pump
4 device and is packaged and sold with the pump device at the
5 time of sale.
6 "Breast pump collection and storage supplies" means
7 items of tangible personal property designed or marketed
8 to be used in conjunction with a breast pump to collect
9 milk expressed from a human breast and to store collected
10 milk until it is ready for consumption.
11 "Breast pump collection and storage supplies"
12 includes, but is not limited to: breast shields and breast
13 shield connectors; breast pump tubes and tubing adapters;
14 breast pump valves and membranes; backflow protectors and
15 backflow protector adaptors; bottles and bottle caps
16 specific to the operation of the breast pump; and breast
17 milk storage bags.
18 "Breast pump collection and storage supplies" does not
19 include: (1) bottles and bottle caps not specific to the
20 operation of the breast pump; (2) breast pump travel bags
21 and other similar carrying accessories, including ice
22 packs, labels, and other similar products; (3) breast pump
23 cleaning supplies; (4) nursing bras, bra pads, breast
24 shells, and other similar products; and (5) creams,
25 ointments, and other similar products that relieve
26 breastfeeding-related symptoms or conditions of the

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1 breasts or nipples, unless sold as part of a breast pump
2 kit that is pre-packaged by the breast pump manufacturer
3 or distributor.
4 "Breast pump kit" means a kit that: (1) contains no
5 more than a breast pump, breast pump collection and
6 storage supplies, a rechargeable battery for operating the
7 breast pump, a breastmilk cooler, bottle stands, ice
8 packs, and a breast pump carrying case; and (2) is
9 pre-packaged as a breast pump kit by the breast pump
10 manufacturer or distributor.
11 (33) Tangible personal property sold by or on behalf of
12the State Treasurer pursuant to the Revised Uniform Unclaimed
13Property Act. This item (33) is exempt from the provisions of
14Section 3-75.
15 (34) Beginning on January 1, 2024, tangible personal
16property purchased by an active duty member of the armed
17forces of the United States who presents valid military
18identification and purchases the property using a form of
19payment where the federal government is the payor. The member
20of the armed forces must complete, at the point of sale, a form
21prescribed by the Department of Revenue documenting that the
22transaction is eligible for the exemption under this
23paragraph. Retailers must keep the form as documentation of
24the exemption in their records for a period of not less than 6
25years. "Armed forces of the United States" means the United
26States Army, Navy, Air Force, Marine Corps, or Coast Guard.

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1This paragraph is exempt from the provisions of Section 3-75.
2 (35) Beginning on July 1, 2024, food prepared for
3immediate consumption and transferred incident to a sale of
4service subject to this Act or the Service Occupation Tax Act
5by an entity licensed under the Hospital Licensing Act, the
6Nursing Home Care Act, the Assisted Living and Shared Housing
7Act, the ID/DD Community Care Act, the MC/DD Act, the
8Specialized Mental Health Rehabilitation Act of 2013, or the
9Child Care Act of 1969 or an entity that holds a permit issued
10pursuant to the Life Care Facilities Act. This item (35) is
11exempt from the provisions of Section 3-75.
12 (36) Beginning on July 1, 2024, food for human consumption
13that is to be consumed off the premises where it is sold (other
14than alcoholic beverages, food consisting of or infused with
15adult use cannabis, soft drinks, and food that has been
16prepared for immediate consumption). This item (36) is exempt
17from the provisions of Section 3-75.
18(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
19Section 70-10, eff. 4-19-22; 102-700, Article 75, Section
2075-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
21Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10,
22eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
23revised 12-12-23.)
24 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
25 Sec. 3-10. Rate of tax. Unless otherwise provided in this

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1Section, the tax imposed by this Act is at the rate of 6.25% of
2the selling price of tangible personal property transferred as
3an incident to the sale of service, but, for the purpose of
4computing this tax, in no event shall the selling price be less
5than the cost price of the property to the serviceman.
6 Beginning on July 1, 2000 and through December 31, 2000,
7with respect to motor fuel, as defined in Section 1.1 of the
8Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
9the Use Tax Act, the tax is imposed at the rate of 1.25%.
10 With respect to gasohol, as defined in the Use Tax Act, the
11tax imposed by this Act applies to (i) 70% of the selling price
12of property transferred as an incident to the sale of service
13on or after January 1, 1990, and before July 1, 2003, (ii) 80%
14of the selling price of property transferred as an incident to
15the sale of service on or after July 1, 2003 and on or before
16July 1, 2017, (iii) 100% of the selling price of property
17transferred as an incident to the sale of service after July 1,
182017 and before January 1, 2024, (iv) 90% of the selling price
19of property transferred as an incident to the sale of service
20on or after January 1, 2024 and on or before December 31, 2028,
21and (v) 100% of the selling price of property transferred as an
22incident to the sale of service after December 31, 2028. If, at
23any time, however, the tax under this Act on sales of gasohol,
24as defined in the Use Tax Act, is imposed at the rate of 1.25%,
25then the tax imposed by this Act applies to 100% of the
26proceeds of sales of gasohol made during that time.

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1 With respect to mid-range ethanol blends, as defined in
2Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
3applies to (i) 80% of the selling price of property
4transferred as an incident to the sale of service on or after
5January 1, 2024 and on or before December 31, 2028 and (ii)
6100% of the selling price of property transferred as an
7incident to the sale of service after December 31, 2028. If, at
8any time, however, the tax under this Act on sales of mid-range
9ethanol blends is imposed at the rate of 1.25%, then the tax
10imposed by this Act applies to 100% of the selling price of
11mid-range ethanol blends transferred as an incident to the
12sale of service during that time.
13 With respect to majority blended ethanol fuel, as defined
14in the Use Tax Act, the tax imposed by this Act does not apply
15to the selling price of property transferred as an incident to
16the sale of service on or after July 1, 2003 and on or before
17December 31, 2028 but applies to 100% of the selling price
18thereafter.
19 With respect to biodiesel blends, as defined in the Use
20Tax Act, with no less than 1% and no more than 10% biodiesel,
21the tax imposed by this Act applies to (i) 80% of the selling
22price of property transferred as an incident to the sale of
23service on or after July 1, 2003 and on or before December 31,
242018 and (ii) 100% of the proceeds of the selling price after
25December 31, 2018 and before January 1, 2024. On and after
26January 1, 2024 and on or before December 31, 2030, the

HB4987- 90 -LRB103 34737 HLH 64585 b
1taxation of biodiesel, renewable diesel, and biodiesel blends
2shall be as provided in Section 3-5.1 of the Use Tax Act. If,
3at any time, however, the tax under this Act on sales of
4biodiesel blends, as defined in the Use Tax Act, with no less
5than 1% and no more than 10% biodiesel is imposed at the rate
6of 1.25%, then the tax imposed by this Act applies to 100% of
7the proceeds of sales of biodiesel blends with no less than 1%
8and no more than 10% biodiesel made during that time.
9 With respect to biodiesel, as defined in the Use Tax Act,
10and biodiesel blends, as defined in the Use Tax Act, with more
11than 10% but no more than 99% biodiesel, the tax imposed by
12this Act does not apply to the proceeds of the selling price of
13property transferred as an incident to the sale of service on
14or after July 1, 2003 and on or before December 31, 2023. On
15and after January 1, 2024 and on or before December 31, 2030,
16the taxation of biodiesel, renewable diesel, and biodiesel
17blends shall be as provided in Section 3-5.1 of the Use Tax
18Act.
19 At the election of any registered serviceman made for each
20fiscal year, sales of service in which the aggregate annual
21cost price of tangible personal property transferred as an
22incident to the sales of service is less than 35%, or 75% in
23the case of servicemen transferring prescription drugs or
24servicemen engaged in graphic arts production, of the
25aggregate annual total gross receipts from all sales of
26service, the tax imposed by this Act shall be based on the

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1serviceman's cost price of the tangible personal property
2transferred as an incident to the sale of those services.
3 Until July 1, 2022 and from beginning again on July 1, 2023
4through June 30, 2024, the tax shall be imposed at the rate of
51% on food prepared for immediate consumption and transferred
6incident to a sale of service subject to this Act or the
7Service Occupation Tax Act by an entity licensed under the
8Hospital Licensing Act, the Nursing Home Care Act, the
9Assisted Living and Shared Housing Act, the ID/DD Community
10Care Act, the MC/DD Act, the Specialized Mental Health
11Rehabilitation Act of 2013, or the Child Care Act of 1969, or
12an entity that holds a permit issued pursuant to the Life Care
13Facilities Act. Until July 1, 2022 and from beginning again on
14July 1, 2023 through June 30, 2024, the tax shall also be
15imposed at the rate of 1% on food for human consumption that is
16to be consumed off the premises where it is sold (other than
17alcoholic beverages, food consisting of or infused with adult
18use cannabis, soft drinks, and food that has been prepared for
19immediate consumption and is not otherwise included in this
20paragraph).
21 From Beginning on July 1, 2022 through June 30, 2023, and
22on and after July 1, 2024, and until July 1, 2023, the tax
23shall be imposed at the rate of 0% on food prepared for
24immediate consumption and transferred incident to a sale of
25service subject to this Act or the Service Occupation Tax Act
26by an entity licensed under the Hospital Licensing Act, the

HB4987- 92 -LRB103 34737 HLH 64585 b
1Nursing Home Care Act, the Assisted Living and Shared Housing
2Act, the ID/DD Community Care Act, the MC/DD Act, the
3Specialized Mental Health Rehabilitation Act of 2013, or the
4Child Care Act of 1969, or an entity that holds a permit issued
5pursuant to the Life Care Facilities Act is exempt from the tax
6under this Act. From Beginning on July 1, 2022 through June 30,
72023, and on and after July 1, 2024, and until July 1, 2023,
8the tax shall also be imposed at the rate of 0% on food for
9human consumption that is to be consumed off the premises
10where it is sold (other than alcoholic beverages, food
11consisting of or infused with adult use cannabis, soft drinks,
12and food that has been prepared for immediate consumption and
13is not otherwise included in this paragraph) is exempt from
14the tax under this Act.
15 The tax shall also be imposed at the rate of 1% on
16prescription and nonprescription medicines, drugs, medical
17appliances, products classified as Class III medical devices
18by the United States Food and Drug Administration that are
19used for cancer treatment pursuant to a prescription, as well
20as any accessories and components related to those devices,
21modifications to a motor vehicle for the purpose of rendering
22it usable by a person with a disability, and insulin, blood
23sugar testing materials, syringes, and needles used by human
24diabetics. For the purposes of this Section, until September
251, 2009: the term "soft drinks" means any complete, finished,
26ready-to-use, non-alcoholic drink, whether carbonated or not,

HB4987- 93 -LRB103 34737 HLH 64585 b
1including, but not limited to, soda water, cola, fruit juice,
2vegetable juice, carbonated water, and all other preparations
3commonly known as soft drinks of whatever kind or description
4that are contained in any closed or sealed bottle, can,
5carton, or container, regardless of size; but "soft drinks"
6does not include coffee, tea, non-carbonated water, infant
7formula, milk or milk products as defined in the Grade A
8Pasteurized Milk and Milk Products Act, or drinks containing
950% or more natural fruit or vegetable juice.
10 Notwithstanding any other provisions of this Act,
11beginning September 1, 2009, "soft drinks" means non-alcoholic
12beverages that contain natural or artificial sweeteners. "Soft
13drinks" does not include beverages that contain milk or milk
14products, soy, rice or similar milk substitutes, or greater
15than 50% of vegetable or fruit juice by volume.
16 Until August 1, 2009, and notwithstanding any other
17provisions of this Act, "food for human consumption that is to
18be consumed off the premises where it is sold" includes all
19food sold through a vending machine, except soft drinks and
20food products that are dispensed hot from a vending machine,
21regardless of the location of the vending machine. Beginning
22August 1, 2009, and notwithstanding any other provisions of
23this Act, "food for human consumption that is to be consumed
24off the premises where it is sold" includes all food sold
25through a vending machine, except soft drinks, candy, and food
26products that are dispensed hot from a vending machine,

HB4987- 94 -LRB103 34737 HLH 64585 b
1regardless of the location of the vending machine.
2 Notwithstanding any other provisions of this Act,
3beginning September 1, 2009, "food for human consumption that
4is to be consumed off the premises where it is sold" does not
5include candy. For purposes of this Section, "candy" means a
6preparation of sugar, honey, or other natural or artificial
7sweeteners in combination with chocolate, fruits, nuts or
8other ingredients or flavorings in the form of bars, drops, or
9pieces. "Candy" does not include any preparation that contains
10flour or requires refrigeration.
11 Notwithstanding any other provisions of this Act,
12beginning September 1, 2009, "nonprescription medicines and
13drugs" does not include grooming and hygiene products. For
14purposes of this Section, "grooming and hygiene products"
15includes, but is not limited to, soaps and cleaning solutions,
16shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
17lotions and screens, unless those products are available by
18prescription only, regardless of whether the products meet the
19definition of "over-the-counter-drugs". For the purposes of
20this paragraph, "over-the-counter-drug" means a drug for human
21use that contains a label that identifies the product as a drug
22as required by 21 CFR 201.66. The "over-the-counter-drug"
23label includes:
24 (A) a "Drug Facts" panel; or
25 (B) a statement of the "active ingredient(s)" with a
26 list of those ingredients contained in the compound,

HB4987- 95 -LRB103 34737 HLH 64585 b
1 substance or preparation.
2 Beginning on January 1, 2014 (the effective date of Public
3Act 98-122), "prescription and nonprescription medicines and
4drugs" includes medical cannabis purchased from a registered
5dispensing organization under the Compassionate Use of Medical
6Cannabis Program Act.
7 As used in this Section, "adult use cannabis" means
8cannabis subject to tax under the Cannabis Cultivation
9Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
10and does not include cannabis subject to tax under the
11Compassionate Use of Medical Cannabis Program Act.
12 If the property that is acquired from a serviceman is
13acquired outside Illinois and used outside Illinois before
14being brought to Illinois for use here and is taxable under
15this Act, the "selling price" on which the tax is computed
16shall be reduced by an amount that represents a reasonable
17allowance for depreciation for the period of prior
18out-of-state use.
19(Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;
20102-700, Article 20, Section 20-10, eff. 4-19-22; 102-700,
21Article 60, Section 60-20, eff. 4-19-22; 103-9, eff. 6-7-23;
22103-154, eff. 6-30-23.)
23 (35 ILCS 110/9) (from Ch. 120, par. 439.39)
24 Sec. 9. Each serviceman required or authorized to collect
25the tax herein imposed shall pay to the Department the amount

HB4987- 96 -LRB103 34737 HLH 64585 b
1of such tax (except as otherwise provided) at the time when he
2is required to file his return for the period during which such
3tax was collected, less a discount of 2.1% prior to January 1,
41990 and 1.75% on and after January 1, 1990, or $5 per calendar
5year, whichever is greater, which is allowed to reimburse the
6serviceman for expenses incurred in collecting the tax,
7keeping records, preparing and filing returns, remitting the
8tax and supplying data to the Department on request. When
9determining the discount allowed under this Section,
10servicemen shall include the amount of tax that would have
11been due at the 1% rate but for the 0% rate imposed under this
12amendatory Act of the 102nd General Assembly. The discount
13under this Section is not allowed for the 1.25% portion of
14taxes paid on aviation fuel that is subject to the revenue use
15requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The
16discount allowed under this Section is allowed only for
17returns that are filed in the manner required by this Act. The
18Department may disallow the discount for servicemen whose
19certificate of registration is revoked at the time the return
20is filed, but only if the Department's decision to revoke the
21certificate of registration has become final. A serviceman
22need not remit that part of any tax collected by him to the
23extent that he is required to pay and does pay the tax imposed
24by the Service Occupation Tax Act with respect to his sale of
25service involving the incidental transfer by him of the same
26property.

HB4987- 97 -LRB103 34737 HLH 64585 b
1 Except as provided hereinafter in this Section, on or
2before the twentieth day of each calendar month, such
3serviceman shall file a return for the preceding calendar
4month in accordance with reasonable Rules and Regulations to
5be promulgated by the Department. Such return shall be filed
6on a form prescribed by the Department and shall contain such
7information as the Department may reasonably require. The
8return shall include the gross receipts which were received
9during the preceding calendar month or quarter on the
10following items upon which tax would have been due but for the
110% rate imposed under this amendatory Act of the 102nd General
12Assembly: (i) food for human consumption that is to be
13consumed off the premises where it is sold (other than
14alcoholic beverages, food consisting of or infused with adult
15use cannabis, soft drinks, and food that has been prepared for
16immediate consumption); and (ii) food prepared for immediate
17consumption and transferred incident to a sale of service
18subject to this Act or the Service Occupation Tax Act by an
19entity licensed under the Hospital Licensing Act, the Nursing
20Home Care Act, the Assisted Living and Shared Housing Act, the
21ID/DD Community Care Act, the MC/DD Act, the Specialized
22Mental Health Rehabilitation Act of 2013, or the Child Care
23Act of 1969, or an entity that holds a permit issued pursuant
24to the Life Care Facilities Act. The return shall also include
25the amount of tax that would have been due on the items listed
26in the previous sentence but for the 0% rate imposed under this

HB4987- 98 -LRB103 34737 HLH 64585 b
1amendatory Act of the 102nd General Assembly.
2 On and after January 1, 2018, with respect to servicemen
3whose annual gross receipts average $20,000 or more, all
4returns required to be filed pursuant to this Act shall be
5filed electronically. Servicemen who demonstrate that they do
6not have access to the Internet or demonstrate hardship in
7filing electronically may petition the Department to waive the
8electronic filing requirement.
9 The Department may require returns to be filed on a
10quarterly basis. If so required, a return for each calendar
11quarter shall be filed on or before the twentieth day of the
12calendar month following the end of such calendar quarter. The
13taxpayer shall also file a return with the Department for each
14of the first two months of each calendar quarter, on or before
15the twentieth day of the following calendar month, stating:
16 1. The name of the seller;
17 2. The address of the principal place of business from
18 which he engages in business as a serviceman in this
19 State;
20 3. The total amount of taxable receipts received by
21 him during the preceding calendar month, including
22 receipts from charge and time sales, but less all
23 deductions allowed by law;
24 4. The amount of credit provided in Section 2d of this
25 Act;
26 5. The amount of tax due;

HB4987- 99 -LRB103 34737 HLH 64585 b
1 5-5. The signature of the taxpayer; and
2 6. Such other reasonable information as the Department
3 may require.
4 Each serviceman required or authorized to collect the tax
5imposed by this Act on aviation fuel transferred as an
6incident of a sale of service in this State during the
7preceding calendar month shall, instead of reporting and
8paying tax on aviation fuel as otherwise required by this
9Section, report and pay such tax on a separate aviation fuel
10tax return. The requirements related to the return shall be as
11otherwise provided in this Section. Notwithstanding any other
12provisions of this Act to the contrary, servicemen collecting
13tax on aviation fuel shall file all aviation fuel tax returns
14and shall make all aviation fuel tax payments by electronic
15means in the manner and form required by the Department. For
16purposes of this Section, "aviation fuel" means jet fuel and
17aviation gasoline.
18 If a taxpayer fails to sign a return within 30 days after
19the proper notice and demand for signature by the Department,
20the return shall be considered valid and any amount shown to be
21due on the return shall be deemed assessed.
22 Notwithstanding any other provision of this Act to the
23contrary, servicemen subject to tax on cannabis shall file all
24cannabis tax returns and shall make all cannabis tax payments
25by electronic means in the manner and form required by the
26Department.

HB4987- 100 -LRB103 34737 HLH 64585 b
1 Beginning October 1, 1993, a taxpayer who has an average
2monthly tax liability of $150,000 or more shall make all
3payments required by rules of the Department by electronic
4funds transfer. Beginning October 1, 1994, a taxpayer who has
5an average monthly tax liability of $100,000 or more shall
6make all payments required by rules of the Department by
7electronic funds transfer. Beginning October 1, 1995, a
8taxpayer who has an average monthly tax liability of $50,000
9or more shall make all payments required by rules of the
10Department by electronic funds transfer. Beginning October 1,
112000, a taxpayer who has an annual tax liability of $200,000 or
12more shall make all payments required by rules of the
13Department by electronic funds transfer. The term "annual tax
14liability" shall be the sum of the taxpayer's liabilities
15under this Act, and under all other State and local occupation
16and use tax laws administered by the Department, for the
17immediately preceding calendar year. The term "average monthly
18tax liability" means the sum of the taxpayer's liabilities
19under this Act, and under all other State and local occupation
20and use tax laws administered by the Department, for the
21immediately preceding calendar year divided by 12. Beginning
22on October 1, 2002, a taxpayer who has a tax liability in the
23amount set forth in subsection (b) of Section 2505-210 of the
24Department of Revenue Law shall make all payments required by
25rules of the Department by electronic funds transfer.
26 Before August 1 of each year beginning in 1993, the

HB4987- 101 -LRB103 34737 HLH 64585 b
1Department shall notify all taxpayers required to make
2payments by electronic funds transfer. All taxpayers required
3to make payments by electronic funds transfer shall make those
4payments for a minimum of one year beginning on October 1.
5 Any taxpayer not required to make payments by electronic
6funds transfer may make payments by electronic funds transfer
7with the permission of the Department.
8 All taxpayers required to make payment by electronic funds
9transfer and any taxpayers authorized to voluntarily make
10payments by electronic funds transfer shall make those
11payments in the manner authorized by the Department.
12 The Department shall adopt such rules as are necessary to
13effectuate a program of electronic funds transfer and the
14requirements of this Section.
15 If the serviceman is otherwise required to file a monthly
16return and if the serviceman's average monthly tax liability
17to the Department does not exceed $200, the Department may
18authorize his returns to be filed on a quarter annual basis,
19with the return for January, February and March of a given year
20being due by April 20 of such year; with the return for April,
21May and June of a given year being due by July 20 of such year;
22with the return for July, August and September of a given year
23being due by October 20 of such year, and with the return for
24October, November and December of a given year being due by
25January 20 of the following year.
26 If the serviceman is otherwise required to file a monthly

HB4987- 102 -LRB103 34737 HLH 64585 b
1or quarterly return and if the serviceman's average monthly
2tax liability to the Department does not exceed $50, the
3Department may authorize his returns to be filed on an annual
4basis, with the return for a given year being due by January 20
5of the following year.
6 Such quarter annual and annual returns, as to form and
7substance, shall be subject to the same requirements as
8monthly returns.
9 Notwithstanding any other provision in this Act concerning
10the time within which a serviceman may file his return, in the
11case of any serviceman who ceases to engage in a kind of
12business which makes him responsible for filing returns under
13this Act, such serviceman shall file a final return under this
14Act with the Department not more than 1 month after
15discontinuing such business.
16 Where a serviceman collects the tax with respect to the
17selling price of property which he sells and the purchaser
18thereafter returns such property and the serviceman refunds
19the selling price thereof to the purchaser, such serviceman
20shall also refund, to the purchaser, the tax so collected from
21the purchaser. When filing his return for the period in which
22he refunds such tax to the purchaser, the serviceman may
23deduct the amount of the tax so refunded by him to the
24purchaser from any other Service Use Tax, Service Occupation
25Tax, retailers' occupation tax or use tax which such
26serviceman may be required to pay or remit to the Department,

HB4987- 103 -LRB103 34737 HLH 64585 b
1as shown by such return, provided that the amount of the tax to
2be deducted shall previously have been remitted to the
3Department by such serviceman. If the serviceman shall not
4previously have remitted the amount of such tax to the
5Department, he shall be entitled to no deduction hereunder
6upon refunding such tax to the purchaser.
7 Any serviceman filing a return hereunder shall also
8include the total tax upon the selling price of tangible
9personal property purchased for use by him as an incident to a
10sale of service, and such serviceman shall remit the amount of
11such tax to the Department when filing such return.
12 If experience indicates such action to be practicable, the
13Department may prescribe and furnish a combination or joint
14return which will enable servicemen, who are required to file
15returns hereunder and also under the Service Occupation Tax
16Act, to furnish all the return information required by both
17Acts on the one form.
18 Where the serviceman has more than one business registered
19with the Department under separate registration hereunder,
20such serviceman shall not file each return that is due as a
21single return covering all such registered businesses, but
22shall file separate returns for each such registered business.
23 Beginning January 1, 1990, each month the Department shall
24pay into the State and Local Tax Reform Fund, a special fund in
25the State Treasury, the net revenue realized for the preceding
26month from the 1% tax imposed under this Act.

HB4987- 104 -LRB103 34737 HLH 64585 b
1 Beginning August 1, 2024, each month the State Comptroller
2shall order transferred and the State Treasurer shall transfer
3from the General Revenue Fund to the State and Local Tax Reform
4Fund an amount equal to the net revenue that would have been
5realized during the preceding month from sales of the items
6described in items (35) and (36) of Section 3-5 if the tax on
7those items had been imposed at the rate of 1%.
8 Beginning January 1, 1990, each month the Department shall
9pay into the State and Local Sales Tax Reform Fund 20% of the
10net revenue realized for the preceding month from the 6.25%
11general rate on transfers of tangible personal property, other
12than (i) tangible personal property which is purchased outside
13Illinois at retail from a retailer and which is titled or
14registered by an agency of this State's government and (ii)
15aviation fuel sold on or after December 1, 2019. This
16exception for aviation fuel only applies for so long as the
17revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
1847133 are binding on the State.
19 For aviation fuel sold on or after December 1, 2019, each
20month the Department shall pay into the State Aviation Program
21Fund 20% of the net revenue realized for the preceding month
22from the 6.25% general rate on the selling price of aviation
23fuel, less an amount estimated by the Department to be
24required for refunds of the 20% portion of the tax on aviation
25fuel under this Act, which amount shall be deposited into the
26Aviation Fuel Sales Tax Refund Fund. The Department shall only

HB4987- 105 -LRB103 34737 HLH 64585 b
1pay moneys into the State Aviation Program Fund and the
2Aviation Fuel Sales Tax Refund Fund under this Act for so long
3as the revenue use requirements of 49 U.S.C. 47107(b) and 49
4U.S.C. 47133 are binding on the State.
5 Beginning August 1, 2000, each month the Department shall
6pay into the State and Local Sales Tax Reform Fund 100% of the
7net revenue realized for the preceding month from the 1.25%
8rate on the selling price of motor fuel and gasohol.
9 Beginning October 1, 2009, each month the Department shall
10pay into the Capital Projects Fund an amount that is equal to
11an amount estimated by the Department to represent 80% of the
12net revenue realized for the preceding month from the sale of
13candy, grooming and hygiene products, and soft drinks that had
14been taxed at a rate of 1% prior to September 1, 2009 but that
15are now taxed at 6.25%.
16 Beginning July 1, 2013, each month the Department shall
17pay into the Underground Storage Tank Fund from the proceeds
18collected under this Act, the Use Tax Act, the Service
19Occupation Tax Act, and the Retailers' Occupation Tax Act an
20amount equal to the average monthly deficit in the Underground
21Storage Tank Fund during the prior year, as certified annually
22by the Illinois Environmental Protection Agency, but the total
23payment into the Underground Storage Tank Fund under this Act,
24the Use Tax Act, the Service Occupation Tax Act, and the
25Retailers' Occupation Tax Act shall not exceed $18,000,000 in
26any State fiscal year. As used in this paragraph, the "average

HB4987- 106 -LRB103 34737 HLH 64585 b
1monthly deficit" shall be equal to the difference between the
2average monthly claims for payment by the fund and the average
3monthly revenues deposited into the fund, excluding payments
4made pursuant to this paragraph.
5 Beginning July 1, 2015, of the remainder of the moneys
6received by the Department under the Use Tax Act, this Act, the
7Service Occupation Tax Act, and the Retailers' Occupation Tax
8Act, each month the Department shall deposit $500,000 into the
9State Crime Laboratory Fund.
10 Of the remainder of the moneys received by the Department
11pursuant to this Act, (a) 1.75% thereof shall be paid into the
12Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
13and after July 1, 1989, 3.8% thereof shall be paid into the
14Build Illinois Fund; provided, however, that if in any fiscal
15year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
16may be, of the moneys received by the Department and required
17to be paid into the Build Illinois Fund pursuant to Section 3
18of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
19Act, Section 9 of the Service Use Tax Act, and Section 9 of the
20Service Occupation Tax Act, such Acts being hereinafter called
21the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
22may be, of moneys being hereinafter called the "Tax Act
23Amount", and (2) the amount transferred to the Build Illinois
24Fund from the State and Local Sales Tax Reform Fund shall be
25less than the Annual Specified Amount (as defined in Section 3
26of the Retailers' Occupation Tax Act), an amount equal to the

HB4987- 107 -LRB103 34737 HLH 64585 b
1difference shall be immediately paid into the Build Illinois
2Fund from other moneys received by the Department pursuant to
3the Tax Acts; and further provided, that if on the last
4business day of any month the sum of (1) the Tax Act Amount
5required to be deposited into the Build Illinois Bond Account
6in the Build Illinois Fund during such month and (2) the amount
7transferred during such month to the Build Illinois Fund from
8the State and Local Sales Tax Reform Fund shall have been less
9than 1/12 of the Annual Specified Amount, an amount equal to
10the difference shall be immediately paid into the Build
11Illinois Fund from other moneys received by the Department
12pursuant to the Tax Acts; and, further provided, that in no
13event shall the payments required under the preceding proviso
14result in aggregate payments into the Build Illinois Fund
15pursuant to this clause (b) for any fiscal year in excess of
16the greater of (i) the Tax Act Amount or (ii) the Annual
17Specified Amount for such fiscal year; and, further provided,
18that the amounts payable into the Build Illinois Fund under
19this clause (b) shall be payable only until such time as the
20aggregate amount on deposit under each trust indenture
21securing Bonds issued and outstanding pursuant to the Build
22Illinois Bond Act is sufficient, taking into account any
23future investment income, to fully provide, in accordance with
24such indenture, for the defeasance of or the payment of the
25principal of, premium, if any, and interest on the Bonds
26secured by such indenture and on any Bonds expected to be

HB4987- 108 -LRB103 34737 HLH 64585 b
1issued thereafter and all fees and costs payable with respect
2thereto, all as certified by the Director of the Bureau of the
3Budget (now Governor's Office of Management and Budget). If on
4the last business day of any month in which Bonds are
5outstanding pursuant to the Build Illinois Bond Act, the
6aggregate of the moneys deposited in the Build Illinois Bond
7Account in the Build Illinois Fund in such month shall be less
8than the amount required to be transferred in such month from
9the Build Illinois Bond Account to the Build Illinois Bond
10Retirement and Interest Fund pursuant to Section 13 of the
11Build Illinois Bond Act, an amount equal to such deficiency
12shall be immediately paid from other moneys received by the
13Department pursuant to the Tax Acts to the Build Illinois
14Fund; provided, however, that any amounts paid to the Build
15Illinois Fund in any fiscal year pursuant to this sentence
16shall be deemed to constitute payments pursuant to clause (b)
17of the preceding sentence and shall reduce the amount
18otherwise payable for such fiscal year pursuant to clause (b)
19of the preceding sentence. The moneys received by the
20Department pursuant to this Act and required to be deposited
21into the Build Illinois Fund are subject to the pledge, claim
22and charge set forth in Section 12 of the Build Illinois Bond
23Act.
24 Subject to payment of amounts into the Build Illinois Fund
25as provided in the preceding paragraph or in any amendment
26thereto hereafter enacted, the following specified monthly

HB4987- 109 -LRB103 34737 HLH 64585 b
1installment of the amount requested in the certificate of the
2Chairman of the Metropolitan Pier and Exposition Authority
3provided under Section 8.25f of the State Finance Act, but not
4in excess of the sums designated as "Total Deposit", shall be
5deposited in the aggregate from collections under Section 9 of
6the Use Tax Act, Section 9 of the Service Use Tax Act, Section
79 of the Service Occupation Tax Act, and Section 3 of the
8Retailers' Occupation Tax Act into the McCormick Place
9Expansion Project Fund in the specified fiscal years.
10Fiscal YearTotal Deposit
111993 $0
121994 53,000,000
131995 58,000,000
141996 61,000,000
151997 64,000,000
161998 68,000,000
171999 71,000,000
182000 75,000,000
192001 80,000,000
202002 93,000,000
212003 99,000,000
222004103,000,000
232005108,000,000
242006113,000,000
252007119,000,000

HB4987- 110 -LRB103 34737 HLH 64585 b
12008126,000,000
22009132,000,000
32010139,000,000
42011146,000,000
52012153,000,000
62013161,000,000
72014170,000,000
82015179,000,000
92016189,000,000
102017199,000,000
112018210,000,000
122019221,000,000
132020233,000,000
142021300,000,000
152022300,000,000
162023300,000,000
172024 300,000,000
182025 300,000,000
192026 300,000,000
202027 375,000,000
212028 375,000,000
222029 375,000,000
232030 375,000,000
242031 375,000,000
252032 375,000,000
262033 375,000,000

HB4987- 111 -LRB103 34737 HLH 64585 b
12034375,000,000
22035375,000,000
32036450,000,000
4and
5each fiscal year
6thereafter that bonds
7are outstanding under
8Section 13.2 of the
9Metropolitan Pier and
10Exposition Authority Act,
11but not after fiscal year 2060.
12 Beginning July 20, 1993 and in each month of each fiscal
13year thereafter, one-eighth of the amount requested in the
14certificate of the Chairman of the Metropolitan Pier and
15Exposition Authority for that fiscal year, less the amount
16deposited into the McCormick Place Expansion Project Fund by
17the State Treasurer in the respective month under subsection
18(g) of Section 13 of the Metropolitan Pier and Exposition
19Authority Act, plus cumulative deficiencies in the deposits
20required under this Section for previous months and years,
21shall be deposited into the McCormick Place Expansion Project
22Fund, until the full amount requested for the fiscal year, but
23not in excess of the amount specified above as "Total
24Deposit", has been deposited.
25 Subject to payment of amounts into the Capital Projects
26Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,

HB4987- 112 -LRB103 34737 HLH 64585 b
1and the McCormick Place Expansion Project Fund pursuant to the
2preceding paragraphs or in any amendments thereto hereafter
3enacted, for aviation fuel sold on or after December 1, 2019,
4the Department shall each month deposit into the Aviation Fuel
5Sales Tax Refund Fund an amount estimated by the Department to
6be required for refunds of the 80% portion of the tax on
7aviation fuel under this Act. The Department shall only
8deposit moneys into the Aviation Fuel Sales Tax Refund Fund
9under this paragraph for so long as the revenue use
10requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
11binding on the State.
12 Subject to payment of amounts into the Build Illinois Fund
13and the McCormick Place Expansion Project Fund pursuant to the
14preceding paragraphs or in any amendments thereto hereafter
15enacted, beginning July 1, 1993 and ending on September 30,
162013, the Department shall each month pay into the Illinois
17Tax Increment Fund 0.27% of 80% of the net revenue realized for
18the preceding month from the 6.25% general rate on the selling
19price of tangible personal property.
20 Subject to payment of amounts into the Build Illinois
21Fund, the McCormick Place Expansion Project Fund, the Illinois
22Tax Increment Fund, pursuant to the preceding paragraphs or in
23any amendments to this Section hereafter enacted, beginning on
24the first day of the first calendar month to occur on or after
25August 26, 2014 (the effective date of Public Act 98-1098),
26each month, from the collections made under Section 9 of the

HB4987- 113 -LRB103 34737 HLH 64585 b
1Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of
2the Service Occupation Tax Act, and Section 3 of the
3Retailers' Occupation Tax Act, the Department shall pay into
4the Tax Compliance and Administration Fund, to be used,
5subject to appropriation, to fund additional auditors and
6compliance personnel at the Department of Revenue, an amount
7equal to 1/12 of 5% of 80% of the cash receipts collected
8during the preceding fiscal year by the Audit Bureau of the
9Department under the Use Tax Act, the Service Use Tax Act, the
10Service Occupation Tax Act, the Retailers' Occupation Tax Act,
11and associated local occupation and use taxes administered by
12the Department.
13 Subject to payments of amounts into the Build Illinois
14Fund, the McCormick Place Expansion Project Fund, the Illinois
15Tax Increment Fund, and the Tax Compliance and Administration
16Fund as provided in this Section, beginning on July 1, 2018 the
17Department shall pay each month into the Downstate Public
18Transportation Fund the moneys required to be so paid under
19Section 2-3 of the Downstate Public Transportation Act.
20 Subject to successful execution and delivery of a
21public-private agreement between the public agency and private
22entity and completion of the civic build, beginning on July 1,
232023, of the remainder of the moneys received by the
24Department under the Use Tax Act, the Service Use Tax Act, the
25Service Occupation Tax Act, and this Act, the Department shall
26deposit the following specified deposits in the aggregate from

HB4987- 114 -LRB103 34737 HLH 64585 b
1collections under the Use Tax Act, the Service Use Tax Act, the
2Service Occupation Tax Act, and the Retailers' Occupation Tax
3Act, as required under Section 8.25g of the State Finance Act
4for distribution consistent with the Public-Private
5Partnership for Civic and Transit Infrastructure Project Act.
6The moneys received by the Department pursuant to this Act and
7required to be deposited into the Civic and Transit
8Infrastructure Fund are subject to the pledge, claim, and
9charge set forth in Section 25-55 of the Public-Private
10Partnership for Civic and Transit Infrastructure Project Act.
11As used in this paragraph, "civic build", "private entity",
12"public-private agreement", and "public agency" have the
13meanings provided in Section 25-10 of the Public-Private
14Partnership for Civic and Transit Infrastructure Project Act.
15 Fiscal Year............................Total Deposit
16 2024....................................$200,000,000
17 2025....................................$206,000,000
18 2026....................................$212,200,000
19 2027....................................$218,500,000
20 2028....................................$225,100,000
21 2029....................................$288,700,000
22 2030....................................$298,900,000
23 2031....................................$309,300,000
24 2032....................................$320,100,000
25 2033....................................$331,200,000
26 2034....................................$341,200,000

HB4987- 115 -LRB103 34737 HLH 64585 b
1 2035....................................$351,400,000
2 2036....................................$361,900,000
3 2037....................................$372,800,000
4 2038....................................$384,000,000
5 2039....................................$395,500,000
6 2040....................................$407,400,000
7 2041....................................$419,600,000
8 2042....................................$432,200,000
9 2043....................................$445,100,000
10 Beginning July 1, 2021 and until July 1, 2022, subject to
11the payment of amounts into the State and Local Sales Tax
12Reform Fund, the Build Illinois Fund, the McCormick Place
13Expansion Project Fund, the Energy Infrastructure Fund, and
14the Tax Compliance and Administration Fund as provided in this
15Section, the Department shall pay each month into the Road
16Fund the amount estimated to represent 16% of the net revenue
17realized from the taxes imposed on motor fuel and gasohol.
18Beginning July 1, 2022 and until July 1, 2023, subject to the
19payment of amounts into the State and Local Sales Tax Reform
20Fund, the Build Illinois Fund, the McCormick Place Expansion
21Project Fund, the Illinois Tax Increment Fund, and the Tax
22Compliance and Administration Fund as provided in this
23Section, the Department shall pay each month into the Road
24Fund the amount estimated to represent 32% of the net revenue
25realized from the taxes imposed on motor fuel and gasohol.
26Beginning July 1, 2023 and until July 1, 2024, subject to the

HB4987- 116 -LRB103 34737 HLH 64585 b
1payment of amounts into the State and Local Sales Tax Reform
2Fund, the Build Illinois Fund, the McCormick Place Expansion
3Project Fund, the Illinois Tax Increment Fund, and the Tax
4Compliance and Administration Fund as provided in this
5Section, the Department shall pay each month into the Road
6Fund the amount estimated to represent 48% of the net revenue
7realized from the taxes imposed on motor fuel and gasohol.
8Beginning July 1, 2024 and until July 1, 2025, subject to the
9payment of amounts into the State and Local Sales Tax Reform
10Fund, the Build Illinois Fund, the McCormick Place Expansion
11Project Fund, the Illinois Tax Increment Fund, and the Tax
12Compliance and Administration Fund as provided in this
13Section, the Department shall pay each month into the Road
14Fund the amount estimated to represent 64% of the net revenue
15realized from the taxes imposed on motor fuel and gasohol.
16Beginning on July 1, 2025, subject to the payment of amounts
17into the State and Local Sales Tax Reform Fund, the Build
18Illinois Fund, the McCormick Place Expansion Project Fund, the
19Illinois Tax Increment Fund, and the Tax Compliance and
20Administration Fund as provided in this Section, the
21Department shall pay each month into the Road Fund the amount
22estimated to represent 80% of the net revenue realized from
23the taxes imposed on motor fuel and gasohol. As used in this
24paragraph "motor fuel" has the meaning given to that term in
25Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the
26meaning given to that term in Section 3-40 of the Use Tax Act.

HB4987- 117 -LRB103 34737 HLH 64585 b
1 Of the remainder of the moneys received by the Department
2pursuant to this Act, 75% thereof shall be paid into the
3General Revenue Fund of the State Treasury and 25% shall be
4reserved in a special account and used only for the transfer to
5the Common School Fund as part of the monthly transfer from the
6General Revenue Fund in accordance with Section 8a of the
7State Finance Act.
8 As soon as possible after the first day of each month, upon
9certification of the Department of Revenue, the Comptroller
10shall order transferred and the Treasurer shall transfer from
11the General Revenue Fund to the Motor Fuel Tax Fund an amount
12equal to 1.7% of 80% of the net revenue realized under this Act
13for the second preceding month. Beginning April 1, 2000, this
14transfer is no longer required and shall not be made.
15 Net revenue realized for a month shall be the revenue
16collected by the State pursuant to this Act, less the amount
17paid out during that month as refunds to taxpayers for
18overpayment of liability.
19(Source: P.A. 102-700, eff. 4-19-22; 103-363, eff. 7-28-23.)
20 Section 20. The Service Occupation Tax Act is amended by
21changing Sections 3-5, 3-10, and 9 as follows:
22 (35 ILCS 115/3-5)
23 Sec. 3-5. Exemptions. The following tangible personal
24property is exempt from the tax imposed by this Act:

HB4987- 118 -LRB103 34737 HLH 64585 b
1 (1) Personal property sold by a corporation, society,
2association, foundation, institution, or organization, other
3than a limited liability company, that is organized and
4operated as a not-for-profit service enterprise for the
5benefit of persons 65 years of age or older if the personal
6property was not purchased by the enterprise for the purpose
7of resale by the enterprise.
8 (2) Personal property purchased by a not-for-profit
9Illinois county fair association for use in conducting,
10operating, or promoting the county fair.
11 (3) Personal property purchased by any not-for-profit arts
12or cultural organization that establishes, by proof required
13by the Department by rule, that it has received an exemption
14under Section 501(c)(3) of the Internal Revenue Code and that
15is organized and operated primarily for the presentation or
16support of arts or cultural programming, activities, or
17services. These organizations include, but are not limited to,
18music and dramatic arts organizations such as symphony
19orchestras and theatrical groups, arts and cultural service
20organizations, local arts councils, visual arts organizations,
21and media arts organizations. On and after July 1, 2001 (the
22effective date of Public Act 92-35), however, an entity
23otherwise eligible for this exemption shall not make tax-free
24purchases unless it has an active identification number issued
25by the Department.
26 (4) Legal tender, currency, medallions, or gold or silver

HB4987- 119 -LRB103 34737 HLH 64585 b
1coinage issued by the State of Illinois, the government of the
2United States of America, or the government of any foreign
3country, and bullion.
4 (5) Until July 1, 2003 and beginning again on September 1,
52004 through August 30, 2014, graphic arts machinery and
6equipment, including repair and replacement parts, both new
7and used, and including that manufactured on special order or
8purchased for lease, certified by the purchaser to be used
9primarily for graphic arts production. Equipment includes
10chemicals or chemicals acting as catalysts but only if the
11chemicals or chemicals acting as catalysts effect a direct and
12immediate change upon a graphic arts product. Beginning on
13July 1, 2017, graphic arts machinery and equipment is included
14in the manufacturing and assembling machinery and equipment
15exemption under Section 2 of this Act.
16 (6) Personal property sold by a teacher-sponsored student
17organization affiliated with an elementary or secondary school
18located in Illinois.
19 (7) Farm machinery and equipment, both new and used,
20including that manufactured on special order, certified by the
21purchaser to be used primarily for production agriculture or
22State or federal agricultural programs, including individual
23replacement parts for the machinery and equipment, including
24machinery and equipment purchased for lease, and including
25implements of husbandry defined in Section 1-130 of the
26Illinois Vehicle Code, farm machinery and agricultural

HB4987- 120 -LRB103 34737 HLH 64585 b
1chemical and fertilizer spreaders, and nurse wagons required
2to be registered under Section 3-809 of the Illinois Vehicle
3Code, but excluding other motor vehicles required to be
4registered under the Illinois Vehicle Code. Horticultural
5polyhouses or hoop houses used for propagating, growing, or
6overwintering plants shall be considered farm machinery and
7equipment under this item (7). Agricultural chemical tender
8tanks and dry boxes shall include units sold separately from a
9motor vehicle required to be licensed and units sold mounted
10on a motor vehicle required to be licensed if the selling price
11of the tender is separately stated.
12 Farm machinery and equipment shall include precision
13farming equipment that is installed or purchased to be
14installed on farm machinery and equipment, including, but not
15limited to, tractors, harvesters, sprayers, planters, seeders,
16or spreaders. Precision farming equipment includes, but is not
17limited to, soil testing sensors, computers, monitors,
18software, global positioning and mapping systems, and other
19such equipment.
20 Farm machinery and equipment also includes computers,
21sensors, software, and related equipment used primarily in the
22computer-assisted operation of production agriculture
23facilities, equipment, and activities such as, but not limited
24to, the collection, monitoring, and correlation of animal and
25crop data for the purpose of formulating animal diets and
26agricultural chemicals.

HB4987- 121 -LRB103 34737 HLH 64585 b
1 Beginning on January 1, 2024, farm machinery and equipment
2also includes electrical power generation equipment used
3primarily for production agriculture.
4 This item (7) is exempt from the provisions of Section
53-55.
6 (8) Until June 30, 2013, fuel and petroleum products sold
7to or used by an air common carrier, certified by the carrier
8to be used for consumption, shipment, or storage in the
9conduct of its business as an air common carrier, for a flight
10destined for or returning from a location or locations outside
11the United States without regard to previous or subsequent
12domestic stopovers.
13 Beginning July 1, 2013, fuel and petroleum products sold
14to or used by an air carrier, certified by the carrier to be
15used for consumption, shipment, or storage in the conduct of
16its business as an air common carrier, for a flight that (i) is
17engaged in foreign trade or is engaged in trade between the
18United States and any of its possessions and (ii) transports
19at least one individual or package for hire from the city of
20origination to the city of final destination on the same
21aircraft, without regard to a change in the flight number of
22that aircraft.
23 (9) Proceeds of mandatory service charges separately
24stated on customers' bills for the purchase and consumption of
25food and beverages, to the extent that the proceeds of the
26service charge are in fact turned over as tips or as a

HB4987- 122 -LRB103 34737 HLH 64585 b
1substitute for tips to the employees who participate directly
2in preparing, serving, hosting or cleaning up the food or
3beverage function with respect to which the service charge is
4imposed.
5 (10) Until July 1, 2003, oil field exploration, drilling,
6and production equipment, including (i) rigs and parts of
7rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
8pipe and tubular goods, including casing and drill strings,
9(iii) pumps and pump-jack units, (iv) storage tanks and flow
10lines, (v) any individual replacement part for oil field
11exploration, drilling, and production equipment, and (vi)
12machinery and equipment purchased for lease; but excluding
13motor vehicles required to be registered under the Illinois
14Vehicle Code.
15 (11) Photoprocessing machinery and equipment, including
16repair and replacement parts, both new and used, including
17that manufactured on special order, certified by the purchaser
18to be used primarily for photoprocessing, and including
19photoprocessing machinery and equipment purchased for lease.
20 (12) Until July 1, 2028, coal and aggregate exploration,
21mining, off-highway hauling, processing, maintenance, and
22reclamation equipment, including replacement parts and
23equipment, and including equipment purchased for lease, but
24excluding motor vehicles required to be registered under the
25Illinois Vehicle Code. The changes made to this Section by
26Public Act 97-767 apply on and after July 1, 2003, but no claim

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1for credit or refund is allowed on or after August 16, 2013
2(the effective date of Public Act 98-456) for such taxes paid
3during the period beginning July 1, 2003 and ending on August
416, 2013 (the effective date of Public Act 98-456).
5 (13) Beginning January 1, 1992 and through June 30, 2016,
6food for human consumption that is to be consumed off the
7premises where it is sold (other than alcoholic beverages,
8soft drinks and food that has been prepared for immediate
9consumption) and prescription and non-prescription medicines,
10drugs, medical appliances, and insulin, urine testing
11materials, syringes, and needles used by diabetics, for human
12use, when purchased for use by a person receiving medical
13assistance under Article V of the Illinois Public Aid Code who
14resides in a licensed long-term care facility, as defined in
15the Nursing Home Care Act, or in a licensed facility as defined
16in the ID/DD Community Care Act, the MC/DD Act, or the
17Specialized Mental Health Rehabilitation Act of 2013.
18 (14) Semen used for artificial insemination of livestock
19for direct agricultural production.
20 (15) Horses, or interests in horses, registered with and
21meeting the requirements of any of the Arabian Horse Club
22Registry of America, Appaloosa Horse Club, American Quarter
23Horse Association, United States Trotting Association, or
24Jockey Club, as appropriate, used for purposes of breeding or
25racing for prizes. This item (15) is exempt from the
26provisions of Section 3-55, and the exemption provided for

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1under this item (15) applies for all periods beginning May 30,
21995, but no claim for credit or refund is allowed on or after
3January 1, 2008 (the effective date of Public Act 95-88) for
4such taxes paid during the period beginning May 30, 2000 and
5ending on January 1, 2008 (the effective date of Public Act
695-88).
7 (16) Computers and communications equipment utilized for
8any hospital purpose and equipment used in the diagnosis,
9analysis, or treatment of hospital patients sold to a lessor
10who leases the equipment, under a lease of one year or longer
11executed or in effect at the time of the purchase, to a
12hospital that has been issued an active tax exemption
13identification number by the Department under Section 1g of
14the Retailers' Occupation Tax Act.
15 (17) Personal property sold to a lessor who leases the
16property, under a lease of one year or longer executed or in
17effect at the time of the purchase, to a governmental body that
18has been issued an active tax exemption identification number
19by the Department under Section 1g of the Retailers'
20Occupation Tax Act.
21 (18) Beginning with taxable years ending on or after
22December 31, 1995 and ending with taxable years ending on or
23before December 31, 2004, personal property that is donated
24for disaster relief to be used in a State or federally declared
25disaster area in Illinois or bordering Illinois by a
26manufacturer or retailer that is registered in this State to a

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1corporation, society, association, foundation, or institution
2that has been issued a sales tax exemption identification
3number by the Department that assists victims of the disaster
4who reside within the declared disaster area.
5 (19) Beginning with taxable years ending on or after
6December 31, 1995 and ending with taxable years ending on or
7before December 31, 2004, personal property that is used in
8the performance of infrastructure repairs in this State,
9including, but not limited to, municipal roads and streets,
10access roads, bridges, sidewalks, waste disposal systems,
11water and sewer line extensions, water distribution and
12purification facilities, storm water drainage and retention
13facilities, and sewage treatment facilities, resulting from a
14State or federally declared disaster in Illinois or bordering
15Illinois when such repairs are initiated on facilities located
16in the declared disaster area within 6 months after the
17disaster.
18 (20) Beginning July 1, 1999, game or game birds sold at a
19"game breeding and hunting preserve area" as that term is used
20in the Wildlife Code. This paragraph is exempt from the
21provisions of Section 3-55.
22 (21) A motor vehicle, as that term is defined in Section
231-146 of the Illinois Vehicle Code, that is donated to a
24corporation, limited liability company, society, association,
25foundation, or institution that is determined by the
26Department to be organized and operated exclusively for

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1educational purposes. For purposes of this exemption, "a
2corporation, limited liability company, society, association,
3foundation, or institution organized and operated exclusively
4for educational purposes" means all tax-supported public
5schools, private schools that offer systematic instruction in
6useful branches of learning by methods common to public
7schools and that compare favorably in their scope and
8intensity with the course of study presented in tax-supported
9schools, and vocational or technical schools or institutes
10organized and operated exclusively to provide a course of
11study of not less than 6 weeks duration and designed to prepare
12individuals to follow a trade or to pursue a manual,
13technical, mechanical, industrial, business, or commercial
14occupation.
15 (22) Beginning January 1, 2000, personal property,
16including food, purchased through fundraising events for the
17benefit of a public or private elementary or secondary school,
18a group of those schools, or one or more school districts if
19the events are sponsored by an entity recognized by the school
20district that consists primarily of volunteers and includes
21parents and teachers of the school children. This paragraph
22does not apply to fundraising events (i) for the benefit of
23private home instruction or (ii) for which the fundraising
24entity purchases the personal property sold at the events from
25another individual or entity that sold the property for the
26purpose of resale by the fundraising entity and that profits

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1from the sale to the fundraising entity. This paragraph is
2exempt from the provisions of Section 3-55.
3 (23) Beginning January 1, 2000 and through December 31,
42001, new or used automatic vending machines that prepare and
5serve hot food and beverages, including coffee, soup, and
6other items, and replacement parts for these machines.
7Beginning January 1, 2002 and through June 30, 2003, machines
8and parts for machines used in commercial, coin-operated
9amusement and vending business if a use or occupation tax is
10paid on the gross receipts derived from the use of the
11commercial, coin-operated amusement and vending machines. This
12paragraph is exempt from the provisions of Section 3-55.
13 (24) Beginning on August 2, 2001 (the effective date of
14Public Act 92-227), computers and communications equipment
15utilized for any hospital purpose and equipment used in the
16diagnosis, analysis, or treatment of hospital patients sold to
17a lessor who leases the equipment, under a lease of one year or
18longer executed or in effect at the time of the purchase, to a
19hospital that has been issued an active tax exemption
20identification number by the Department under Section 1g of
21the Retailers' Occupation Tax Act. This paragraph is exempt
22from the provisions of Section 3-55.
23 (25) Beginning on August 2, 2001 (the effective date of
24Public Act 92-227), personal property sold to a lessor who
25leases the property, under a lease of one year or longer
26executed or in effect at the time of the purchase, to a

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1governmental body that has been issued an active tax exemption
2identification number by the Department under Section 1g of
3the Retailers' Occupation Tax Act. This paragraph is exempt
4from the provisions of Section 3-55.
5 (26) Beginning on January 1, 2002 and through June 30,
62016, tangible personal property purchased from an Illinois
7retailer by a taxpayer engaged in centralized purchasing
8activities in Illinois who will, upon receipt of the property
9in Illinois, temporarily store the property in Illinois (i)
10for the purpose of subsequently transporting it outside this
11State for use or consumption thereafter solely outside this
12State or (ii) for the purpose of being processed, fabricated,
13or manufactured into, attached to, or incorporated into other
14tangible personal property to be transported outside this
15State and thereafter used or consumed solely outside this
16State. The Director of Revenue shall, pursuant to rules
17adopted in accordance with the Illinois Administrative
18Procedure Act, issue a permit to any taxpayer in good standing
19with the Department who is eligible for the exemption under
20this paragraph (26). The permit issued under this paragraph
21(26) shall authorize the holder, to the extent and in the
22manner specified in the rules adopted under this Act, to
23purchase tangible personal property from a retailer exempt
24from the taxes imposed by this Act. Taxpayers shall maintain
25all necessary books and records to substantiate the use and
26consumption of all such tangible personal property outside of

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1the State of Illinois.
2 (27) Beginning January 1, 2008, tangible personal property
3used in the construction or maintenance of a community water
4supply, as defined under Section 3.145 of the Environmental
5Protection Act, that is operated by a not-for-profit
6corporation that holds a valid water supply permit issued
7under Title IV of the Environmental Protection Act. This
8paragraph is exempt from the provisions of Section 3-55.
9 (28) Tangible personal property sold to a
10public-facilities corporation, as described in Section
1111-65-10 of the Illinois Municipal Code, for purposes of
12constructing or furnishing a municipal convention hall, but
13only if the legal title to the municipal convention hall is
14transferred to the municipality without any further
15consideration by or on behalf of the municipality at the time
16of the completion of the municipal convention hall or upon the
17retirement or redemption of any bonds or other debt
18instruments issued by the public-facilities corporation in
19connection with the development of the municipal convention
20hall. This exemption includes existing public-facilities
21corporations as provided in Section 11-65-25 of the Illinois
22Municipal Code. This paragraph is exempt from the provisions
23of Section 3-55.
24 (29) Beginning January 1, 2010 and continuing through
25December 31, 2029, materials, parts, equipment, components,
26and furnishings incorporated into or upon an aircraft as part

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1of the modification, refurbishment, completion, replacement,
2repair, or maintenance of the aircraft. This exemption
3includes consumable supplies used in the modification,
4refurbishment, completion, replacement, repair, and
5maintenance of aircraft. However, until January 1, 2024, this
6exemption excludes any materials, parts, equipment,
7components, and consumable supplies used in the modification,
8replacement, repair, and maintenance of aircraft engines or
9power plants, whether such engines or power plants are
10installed or uninstalled upon any such aircraft. "Consumable
11supplies" include, but are not limited to, adhesive, tape,
12sandpaper, general purpose lubricants, cleaning solution,
13latex gloves, and protective films.
14 Beginning January 1, 2010 and continuing through December
1531, 2023, this exemption applies only to the transfer of
16qualifying tangible personal property incident to the
17modification, refurbishment, completion, replacement, repair,
18or maintenance of an aircraft by persons who (i) hold an Air
19Agency Certificate and are empowered to operate an approved
20repair station by the Federal Aviation Administration, (ii)
21have a Class IV Rating, and (iii) conduct operations in
22accordance with Part 145 of the Federal Aviation Regulations.
23The exemption does not include aircraft operated by a
24commercial air carrier providing scheduled passenger air
25service pursuant to authority issued under Part 121 or Part
26129 of the Federal Aviation Regulations. From January 1, 2024

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1through December 31, 2029, this exemption applies only to the
2use of qualifying tangible personal property by: (A) persons
3who modify, refurbish, complete, repair, replace, or maintain
4aircraft and who (i) hold an Air Agency Certificate and are
5empowered to operate an approved repair station by the Federal
6Aviation Administration, (ii) have a Class IV Rating, and
7(iii) conduct operations in accordance with Part 145 of the
8Federal Aviation Regulations; and (B) persons who engage in
9the modification, replacement, repair, and maintenance of
10aircraft engines or power plants without regard to whether or
11not those persons meet the qualifications of item (A).
12 The changes made to this paragraph (29) by Public Act
1398-534 are declarative of existing law. It is the intent of the
14General Assembly that the exemption under this paragraph (29)
15applies continuously from January 1, 2010 through December 31,
162024; however, no claim for credit or refund is allowed for
17taxes paid as a result of the disallowance of this exemption on
18or after January 1, 2015 and prior to February 5, 2020 (the
19effective date of Public Act 101-629).
20 (30) Beginning January 1, 2017 and through December 31,
212026, menstrual pads, tampons, and menstrual cups.
22 (31) Tangible personal property transferred to a purchaser
23who is exempt from tax by operation of federal law. This
24paragraph is exempt from the provisions of Section 3-55.
25 (32) Qualified tangible personal property used in the
26construction or operation of a data center that has been

HB4987- 132 -LRB103 34737 HLH 64585 b
1granted a certificate of exemption by the Department of
2Commerce and Economic Opportunity, whether that tangible
3personal property is purchased by the owner, operator, or
4tenant of the data center or by a contractor or subcontractor
5of the owner, operator, or tenant. Data centers that would
6have qualified for a certificate of exemption prior to January
71, 2020 had Public Act 101-31 been in effect, may apply for and
8obtain an exemption for subsequent purchases of computer
9equipment or enabling software purchased or leased to upgrade,
10supplement, or replace computer equipment or enabling software
11purchased or leased in the original investment that would have
12qualified.
13 The Department of Commerce and Economic Opportunity shall
14grant a certificate of exemption under this item (32) to
15qualified data centers as defined by Section 605-1025 of the
16Department of Commerce and Economic Opportunity Law of the
17Civil Administrative Code of Illinois.
18 For the purposes of this item (32):
19 "Data center" means a building or a series of
20 buildings rehabilitated or constructed to house working
21 servers in one physical location or multiple sites within
22 the State of Illinois.
23 "Qualified tangible personal property" means:
24 electrical systems and equipment; climate control and
25 chilling equipment and systems; mechanical systems and
26 equipment; monitoring and secure systems; emergency

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1 generators; hardware; computers; servers; data storage
2 devices; network connectivity equipment; racks; cabinets;
3 telecommunications cabling infrastructure; raised floor
4 systems; peripheral components or systems; software;
5 mechanical, electrical, or plumbing systems; battery
6 systems; cooling systems and towers; temperature control
7 systems; other cabling; and other data center
8 infrastructure equipment and systems necessary to operate
9 qualified tangible personal property, including fixtures;
10 and component parts of any of the foregoing, including
11 installation, maintenance, repair, refurbishment, and
12 replacement of qualified tangible personal property to
13 generate, transform, transmit, distribute, or manage
14 electricity necessary to operate qualified tangible
15 personal property; and all other tangible personal
16 property that is essential to the operations of a computer
17 data center. The term "qualified tangible personal
18 property" also includes building materials physically
19 incorporated into in to the qualifying data center. To
20 document the exemption allowed under this Section, the
21 retailer must obtain from the purchaser a copy of the
22 certificate of eligibility issued by the Department of
23 Commerce and Economic Opportunity.
24 This item (32) is exempt from the provisions of Section
253-55.
26 (33) Beginning July 1, 2022, breast pumps, breast pump

HB4987- 134 -LRB103 34737 HLH 64585 b
1collection and storage supplies, and breast pump kits. This
2item (33) is exempt from the provisions of Section 3-55. As
3used in this item (33):
4 "Breast pump" means an electrically controlled or
5 manually controlled pump device designed or marketed to be
6 used to express milk from a human breast during lactation,
7 including the pump device and any battery, AC adapter, or
8 other power supply unit that is used to power the pump
9 device and is packaged and sold with the pump device at the
10 time of sale.
11 "Breast pump collection and storage supplies" means
12 items of tangible personal property designed or marketed
13 to be used in conjunction with a breast pump to collect
14 milk expressed from a human breast and to store collected
15 milk until it is ready for consumption.
16 "Breast pump collection and storage supplies"
17 includes, but is not limited to: breast shields and breast
18 shield connectors; breast pump tubes and tubing adapters;
19 breast pump valves and membranes; backflow protectors and
20 backflow protector adaptors; bottles and bottle caps
21 specific to the operation of the breast pump; and breast
22 milk storage bags.
23 "Breast pump collection and storage supplies" does not
24 include: (1) bottles and bottle caps not specific to the
25 operation of the breast pump; (2) breast pump travel bags
26 and other similar carrying accessories, including ice

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1 packs, labels, and other similar products; (3) breast pump
2 cleaning supplies; (4) nursing bras, bra pads, breast
3 shells, and other similar products; and (5) creams,
4 ointments, and other similar products that relieve
5 breastfeeding-related symptoms or conditions of the
6 breasts or nipples, unless sold as part of a breast pump
7 kit that is pre-packaged by the breast pump manufacturer
8 or distributor.
9 "Breast pump kit" means a kit that: (1) contains no
10 more than a breast pump, breast pump collection and
11 storage supplies, a rechargeable battery for operating the
12 breast pump, a breastmilk cooler, bottle stands, ice
13 packs, and a breast pump carrying case; and (2) is
14 pre-packaged as a breast pump kit by the breast pump
15 manufacturer or distributor.
16 (34) Tangible personal property sold by or on behalf of
17the State Treasurer pursuant to the Revised Uniform Unclaimed
18Property Act. This item (34) is exempt from the provisions of
19Section 3-55.
20 (35) Beginning on January 1, 2024, tangible personal
21property purchased by an active duty member of the armed
22forces of the United States who presents valid military
23identification and purchases the property using a form of
24payment where the federal government is the payor. The member
25of the armed forces must complete, at the point of sale, a form
26prescribed by the Department of Revenue documenting that the

HB4987- 136 -LRB103 34737 HLH 64585 b
1transaction is eligible for the exemption under this
2paragraph. Retailers must keep the form as documentation of
3the exemption in their records for a period of not less than 6
4years. "Armed forces of the United States" means the United
5States Army, Navy, Air Force, Marine Corps, or Coast Guard.
6This paragraph is exempt from the provisions of Section 3-55.
7 (36) Beginning on July 1, 2024, food prepared for
8immediate consumption and transferred incident to a sale of
9service subject to this Act or the Service Occupation Tax Act
10by an entity licensed under the Hospital Licensing Act, the
11Nursing Home Care Act, the Assisted Living and Shared Housing
12Act, the ID/DD Community Care Act, the MC/DD Act, the
13Specialized Mental Health Rehabilitation Act of 2013, or the
14Child Care Act of 1969 or an entity that holds a permit issued
15pursuant to the Life Care Facilities Act. This item (36) is
16exempt from the provisions of Section 3-55.
17 (37) Beginning on July 1, 2024, food for human consumption
18that is to be consumed off the premises where it is sold (other
19than alcoholic beverages, food consisting of or infused with
20adult use cannabis, soft drinks, and food that has been
21prepared for immediate consumption) This item (37
) is exempt
22from the provisions of Section 3-55.
23(Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70,
24Section 70-15, eff. 4-19-22; 102-700, Article 75, Section
2575-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5,
26Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15,

HB4987- 137 -LRB103 34737 HLH 64585 b
1eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24;
2revised 12-12-23.)
3 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
4 Sec. 3-10. Rate of tax. Unless otherwise provided in this
5Section, the tax imposed by this Act is at the rate of 6.25% of
6the "selling price", as defined in Section 2 of the Service Use
7Tax Act, of the tangible personal property. For the purpose of
8computing this tax, in no event shall the "selling price" be
9less than the cost price to the serviceman of the tangible
10personal property transferred. The selling price of each item
11of tangible personal property transferred as an incident of a
12sale of service may be shown as a distinct and separate item on
13the serviceman's billing to the service customer. If the
14selling price is not so shown, the selling price of the
15tangible personal property is deemed to be 50% of the
16serviceman's entire billing to the service customer. When,
17however, a serviceman contracts to design, develop, and
18produce special order machinery or equipment, the tax imposed
19by this Act shall be based on the serviceman's cost price of
20the tangible personal property transferred incident to the
21completion of the contract.
22 Beginning on July 1, 2000 and through December 31, 2000,
23with respect to motor fuel, as defined in Section 1.1 of the
24Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
25the Use Tax Act, the tax is imposed at the rate of 1.25%.

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1 With respect to gasohol, as defined in the Use Tax Act, the
2tax imposed by this Act shall apply to (i) 70% of the cost
3price of property transferred as an incident to the sale of
4service on or after January 1, 1990, and before July 1, 2003,
5(ii) 80% of the selling price of property transferred as an
6incident to the sale of service on or after July 1, 2003 and on
7or before July 1, 2017, (iii) 100% of the selling price of
8property transferred as an incident to the sale of service
9after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
10the selling price of property transferred as an incident to
11the sale of service on or after January 1, 2024 and on or
12before December 31, 2028, and (v) 100% of the selling price of
13property transferred as an incident to the sale of service
14after December 31, 2028. If, at any time, however, the tax
15under this Act on sales of gasohol, as defined in the Use Tax
16Act, is imposed at the rate of 1.25%, then the tax imposed by
17this Act applies to 100% of the proceeds of sales of gasohol
18made during that time.
19 With respect to mid-range ethanol blends, as defined in
20Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
21applies to (i) 80% of the selling price of property
22transferred as an incident to the sale of service on or after
23January 1, 2024 and on or before December 31, 2028 and (ii)
24100% of the selling price of property transferred as an
25incident to the sale of service after December 31, 2028. If, at
26any time, however, the tax under this Act on sales of mid-range

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1ethanol blends is imposed at the rate of 1.25%, then the tax
2imposed by this Act applies to 100% of the selling price of
3mid-range ethanol blends transferred as an incident to the
4sale of service during that time.
5 With respect to majority blended ethanol fuel, as defined
6in the Use Tax Act, the tax imposed by this Act does not apply
7to the selling price of property transferred as an incident to
8the sale of service on or after July 1, 2003 and on or before
9December 31, 2028 but applies to 100% of the selling price
10thereafter.
11 With respect to biodiesel blends, as defined in the Use
12Tax Act, with no less than 1% and no more than 10% biodiesel,
13the tax imposed by this Act applies to (i) 80% of the selling
14price of property transferred as an incident to the sale of
15service on or after July 1, 2003 and on or before December 31,
162018 and (ii) 100% of the proceeds of the selling price after
17December 31, 2018 and before January 1, 2024. On and after
18January 1, 2024 and on or before December 31, 2030, the
19taxation of biodiesel, renewable diesel, and biodiesel blends
20shall be as provided in Section 3-5.1 of the Use Tax Act. If,
21at any time, however, the tax under this Act on sales of
22biodiesel blends, as defined in the Use Tax Act, with no less
23than 1% and no more than 10% biodiesel is imposed at the rate
24of 1.25%, then the tax imposed by this Act applies to 100% of
25the proceeds of sales of biodiesel blends with no less than 1%
26and no more than 10% biodiesel made during that time.

HB4987- 140 -LRB103 34737 HLH 64585 b
1 With respect to biodiesel, as defined in the Use Tax Act,
2and biodiesel blends, as defined in the Use Tax Act, with more
3than 10% but no more than 99% biodiesel material, the tax
4imposed by this Act does not apply to the proceeds of the
5selling price of property transferred as an incident to the
6sale of service on or after July 1, 2003 and on or before
7December 31, 2023. On and after January 1, 2024 and on or
8before December 31, 2030, the taxation of biodiesel, renewable
9diesel, and biodiesel blends shall be as provided in Section
103-5.1 of the Use Tax Act.
11 At the election of any registered serviceman made for each
12fiscal year, sales of service in which the aggregate annual
13cost price of tangible personal property transferred as an
14incident to the sales of service is less than 35%, or 75% in
15the case of servicemen transferring prescription drugs or
16servicemen engaged in graphic arts production, of the
17aggregate annual total gross receipts from all sales of
18service, the tax imposed by this Act shall be based on the
19serviceman's cost price of the tangible personal property
20transferred incident to the sale of those services.
21 Until July 1, 2022 and from beginning again on July 1, 2023
22through June 30, 2024, the tax shall be imposed at the rate of
231% on food prepared for immediate consumption and transferred
24incident to a sale of service subject to this Act or the
25Service Use Tax Act by an entity licensed under the Hospital
26Licensing Act, the Nursing Home Care Act, the Assisted Living

HB4987- 141 -LRB103 34737 HLH 64585 b
1and Shared Housing Act, the ID/DD Community Care Act, the
2MC/DD Act, the Specialized Mental Health Rehabilitation Act of
32013, or the Child Care Act of 1969, or an entity that holds a
4permit issued pursuant to the Life Care Facilities Act. Until
5July 1, 2022 and from beginning again on July 1, 2023 through
6June 30, 2024, the tax shall also be imposed at the rate of 1%
7on food for human consumption that is to be consumed off the
8premises where it is sold (other than alcoholic beverages,
9food consisting of or infused with adult use cannabis, soft
10drinks, and food that has been prepared for immediate
11consumption and is not otherwise included in this paragraph).
12 From Beginning on July 1, 2022 through June 30, 2023, and
13on and after July 1, 2024, and until July 1, 2023, the tax
14shall be imposed at the rate of 0% on food prepared for
15immediate consumption and transferred incident to a sale of
16service subject to this Act or the Service Use Tax Act by an
17entity licensed under the Hospital Licensing Act, the Nursing
18Home Care Act, the Assisted Living and Shared Housing Act, the
19ID/DD Community Care Act, the MC/DD Act, the Specialized
20Mental Health Rehabilitation Act of 2013, or the Child Care
21Act of 1969, or an entity that holds a permit issued pursuant
22to the Life Care Facilities Act is exempt from the tax imposed
23by this Act. From Beginning July 1, 2022 through June 30, 2023,
24and on and after July 1, 2024, and until July 1, 2023, the tax
25shall also be imposed at the rate of 0% on food for human
26consumption that is to be consumed off the premises where it is

HB4987- 142 -LRB103 34737 HLH 64585 b
1sold (other than alcoholic beverages, food consisting of or
2infused with adult use cannabis, soft drinks, and food that
3has been prepared for immediate consumption and is not
4otherwise included in this paragraph) is exempt from the tax
5imposed by this Act.
6 The tax shall also be imposed at the rate of 1% on
7prescription and nonprescription medicines, drugs, medical
8appliances, products classified as Class III medical devices
9by the United States Food and Drug Administration that are
10used for cancer treatment pursuant to a prescription, as well
11as any accessories and components related to those devices,
12modifications to a motor vehicle for the purpose of rendering
13it usable by a person with a disability, and insulin, blood
14sugar testing materials, syringes, and needles used by human
15diabetics. For the purposes of this Section, until September
161, 2009: the term "soft drinks" means any complete, finished,
17ready-to-use, non-alcoholic drink, whether carbonated or not,
18including, but not limited to, soda water, cola, fruit juice,
19vegetable juice, carbonated water, and all other preparations
20commonly known as soft drinks of whatever kind or description
21that are contained in any closed or sealed can, carton, or
22container, regardless of size; but "soft drinks" does not
23include coffee, tea, non-carbonated water, infant formula,
24milk or milk products as defined in the Grade A Pasteurized
25Milk and Milk Products Act, or drinks containing 50% or more
26natural fruit or vegetable juice.

HB4987- 143 -LRB103 34737 HLH 64585 b
1 Notwithstanding any other provisions of this Act,
2beginning September 1, 2009, "soft drinks" means non-alcoholic
3beverages that contain natural or artificial sweeteners. "Soft
4drinks" does not include beverages that contain milk or milk
5products, soy, rice or similar milk substitutes, or greater
6than 50% of vegetable or fruit juice by volume.
7 Until August 1, 2009, and notwithstanding any other
8provisions of this Act, "food for human consumption that is to
9be consumed off the premises where it is sold" includes all
10food sold through a vending machine, except soft drinks and
11food products that are dispensed hot from a vending machine,
12regardless of the location of the vending machine. Beginning
13August 1, 2009, and notwithstanding any other provisions of
14this Act, "food for human consumption that is to be consumed
15off the premises where it is sold" includes all food sold
16through a vending machine, except soft drinks, candy, and food
17products that are dispensed hot from a vending machine,
18regardless of the location of the vending machine.
19 Notwithstanding any other provisions of this Act,
20beginning September 1, 2009, "food for human consumption that
21is to be consumed off the premises where it is sold" does not
22include candy. For purposes of this Section, "candy" means a
23preparation of sugar, honey, or other natural or artificial
24sweeteners in combination with chocolate, fruits, nuts or
25other ingredients or flavorings in the form of bars, drops, or
26pieces. "Candy" does not include any preparation that contains

HB4987- 144 -LRB103 34737 HLH 64585 b
1flour or requires refrigeration.
2 Notwithstanding any other provisions of this Act,
3beginning September 1, 2009, "nonprescription medicines and
4drugs" does not include grooming and hygiene products. For
5purposes of this Section, "grooming and hygiene products"
6includes, but is not limited to, soaps and cleaning solutions,
7shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
8lotions and screens, unless those products are available by
9prescription only, regardless of whether the products meet the
10definition of "over-the-counter-drugs". For the purposes of
11this paragraph, "over-the-counter-drug" means a drug for human
12use that contains a label that identifies the product as a drug
13as required by 21 CFR 201.66. The "over-the-counter-drug"
14label includes:
15 (A) a "Drug Facts" panel; or
16 (B) a statement of the "active ingredient(s)" with a
17 list of those ingredients contained in the compound,
18 substance or preparation.
19 Beginning on January 1, 2014 (the effective date of Public
20Act 98-122), "prescription and nonprescription medicines and
21drugs" includes medical cannabis purchased from a registered
22dispensing organization under the Compassionate Use of Medical
23Cannabis Program Act.
24 As used in this Section, "adult use cannabis" means
25cannabis subject to tax under the Cannabis Cultivation
26Privilege Tax Law and the Cannabis Purchaser Excise Tax Law

HB4987- 145 -LRB103 34737 HLH 64585 b
1and does not include cannabis subject to tax under the
2Compassionate Use of Medical Cannabis Program Act.
3(Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21;
4102-700, Article 20, Section 20-15, eff. 4-19-22; 102-700,
5Article 60, Section 60-25, eff. 4-19-22; 103-9, eff. 6-7-23;
6103-154, eff. 6-30-23.)
7 (35 ILCS 115/9) (from Ch. 120, par. 439.109)
8 Sec. 9. Each serviceman required or authorized to collect
9the tax herein imposed shall pay to the Department the amount
10of such tax at the time when he is required to file his return
11for the period during which such tax was collectible, less a
12discount of 2.1% prior to January 1, 1990, and 1.75% on and
13after January 1, 1990, or $5 per calendar year, whichever is
14greater, which is allowed to reimburse the serviceman for
15expenses incurred in collecting the tax, keeping records,
16preparing and filing returns, remitting the tax, and supplying
17data to the Department on request. When determining the
18discount allowed under this Section, servicemen shall include
19the amount of tax that would have been due at the 1% rate but
20for the 0% rate imposed under Public Act 102-700 this
21amendatory Act of the 102nd General Assembly. The discount
22under this Section is not allowed for the 1.25% portion of
23taxes paid on aviation fuel that is subject to the revenue use
24requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The
25discount allowed under this Section is allowed only for

HB4987- 146 -LRB103 34737 HLH 64585 b
1returns that are filed in the manner required by this Act. The
2Department may disallow the discount for servicemen whose
3certificate of registration is revoked at the time the return
4is filed, but only if the Department's decision to revoke the
5certificate of registration has become final.
6 Where such tangible personal property is sold under a
7conditional sales contract, or under any other form of sale
8wherein the payment of the principal sum, or a part thereof, is
9extended beyond the close of the period for which the return is
10filed, the serviceman, in collecting the tax may collect, for
11each tax return period, only the tax applicable to the part of
12the selling price actually received during such tax return
13period.
14 Except as provided hereinafter in this Section, on or
15before the twentieth day of each calendar month, such
16serviceman shall file a return for the preceding calendar
17month in accordance with reasonable rules and regulations to
18be promulgated by the Department of Revenue. Such return shall
19be filed on a form prescribed by the Department and shall
20contain such information as the Department may reasonably
21require. The return shall include the gross receipts which
22were received during the preceding calendar month or quarter
23on the following items upon which tax would have been due but
24for the 0% rate imposed under Public Act 102-700 this
25amendatory Act of the 102nd General Assembly: (i) food for
26human consumption that is to be consumed off the premises

HB4987- 147 -LRB103 34737 HLH 64585 b
1where it is sold (other than alcoholic beverages, food
2consisting of or infused with adult use cannabis, soft drinks,
3and food that has been prepared for immediate consumption);
4and (ii) food prepared for immediate consumption and
5transferred incident to a sale of service subject to this Act
6or the Service Use Tax Act by an entity licensed under the
7Hospital Licensing Act, the Nursing Home Care Act, the
8Assisted Living and Shared Housing Act, the ID/DD Community
9Care Act, the MC/DD Act, the Specialized Mental Health
10Rehabilitation Act of 2013, or the Child Care Act of 1969, or
11an entity that holds a permit issued pursuant to the Life Care
12Facilities Act. The return shall also include the amount of
13tax that would have been due on the items listed in the
14previous sentence but for the 0% rate imposed under Public Act
15102-700 this amendatory Act of the 102nd General Assembly.
16 On and after January 1, 2018, with respect to servicemen
17whose annual gross receipts average $20,000 or more, all
18returns required to be filed pursuant to this Act shall be
19filed electronically. Servicemen who demonstrate that they do
20not have access to the Internet or demonstrate hardship in
21filing electronically may petition the Department to waive the
22electronic filing requirement.
23 The Department may require returns to be filed on a
24quarterly basis. If so required, a return for each calendar
25quarter shall be filed on or before the twentieth day of the
26calendar month following the end of such calendar quarter. The

HB4987- 148 -LRB103 34737 HLH 64585 b
1taxpayer shall also file a return with the Department for each
2of the first two months of each calendar quarter, on or before
3the twentieth day of the following calendar month, stating:
4 1. The name of the seller;
5 2. The address of the principal place of business from
6 which he engages in business as a serviceman in this
7 State;
8 3. The total amount of taxable receipts received by
9 him during the preceding calendar month, including
10 receipts from charge and time sales, but less all
11 deductions allowed by law;
12 4. The amount of credit provided in Section 2d of this
13 Act;
14 5. The amount of tax due;
15 5-5. The signature of the taxpayer; and
16 6. Such other reasonable information as the Department
17 may require.
18 Each serviceman required or authorized to collect the tax
19herein imposed on aviation fuel acquired as an incident to the
20purchase of a service in this State during the preceding
21calendar month shall, instead of reporting and paying tax as
22otherwise required by this Section, report and pay such tax on
23a separate aviation fuel tax return. The requirements related
24to the return shall be as otherwise provided in this Section.
25Notwithstanding any other provisions of this Act to the
26contrary, servicemen transferring aviation fuel incident to

HB4987- 149 -LRB103 34737 HLH 64585 b
1sales of service shall file all aviation fuel tax returns and
2shall make all aviation fuel tax payments by electronic means
3in the manner and form required by the Department. For
4purposes of this Section, "aviation fuel" means jet fuel and
5aviation gasoline.
6 If a taxpayer fails to sign a return within 30 days after
7the proper notice and demand for signature by the Department,
8the return shall be considered valid and any amount shown to be
9due on the return shall be deemed assessed.
10 Notwithstanding any other provision of this Act to the
11contrary, servicemen subject to tax on cannabis shall file all
12cannabis tax returns and shall make all cannabis tax payments
13by electronic means in the manner and form required by the
14Department.
15 Prior to October 1, 2003, and on and after September 1,
162004 a serviceman may accept a Manufacturer's Purchase Credit
17certification from a purchaser in satisfaction of Service Use
18Tax as provided in Section 3-70 of the Service Use Tax Act if
19the purchaser provides the appropriate documentation as
20required by Section 3-70 of the Service Use Tax Act. A
21Manufacturer's Purchase Credit certification, accepted prior
22to October 1, 2003 or on or after September 1, 2004 by a
23serviceman as provided in Section 3-70 of the Service Use Tax
24Act, may be used by that serviceman to satisfy Service
25Occupation Tax liability in the amount claimed in the
26certification, not to exceed 6.25% of the receipts subject to

HB4987- 150 -LRB103 34737 HLH 64585 b
1tax from a qualifying purchase. A Manufacturer's Purchase
2Credit reported on any original or amended return filed under
3this Act after October 20, 2003 for reporting periods prior to
4September 1, 2004 shall be disallowed. Manufacturer's Purchase
5Credit reported on annual returns due on or after January 1,
62005 will be disallowed for periods prior to September 1,
72004. No Manufacturer's Purchase Credit may be used after
8September 30, 2003 through August 31, 2004 to satisfy any tax
9liability imposed under this Act, including any audit
10liability.
11 Beginning on July 1, 2023 and through December 31, 2032, a
12serviceman may accept a Sustainable Aviation Fuel Purchase
13Credit certification from an air common carrier-purchaser in
14satisfaction of Service Use Tax as provided in Section 3-72 of
15the Service Use Tax Act if the purchaser provides the
16appropriate documentation as required by Section 3-72 of the
17Service Use Tax Act. A Sustainable Aviation Fuel Purchase
18Credit certification accepted by a serviceman in accordance
19with this paragraph may be used by that serviceman to satisfy
20service occupation tax liability (but not in satisfaction of
21penalty or interest) in the amount claimed in the
22certification, not to exceed 6.25% of the receipts subject to
23tax from a sale of aviation fuel. In addition, for a sale of
24aviation fuel to qualify to earn the Sustainable Aviation Fuel
25Purchase Credit, servicemen must retain in their books and
26records a certification from the producer of the aviation fuel

HB4987- 151 -LRB103 34737 HLH 64585 b
1that the aviation fuel sold by the serviceman and for which a
2sustainable aviation fuel purchase credit was earned meets the
3definition of sustainable aviation fuel under Section 3-72 of
4the Service Use Tax Act. The documentation must include detail
5sufficient for the Department to determine the number of
6gallons of sustainable aviation fuel sold.
7 If the serviceman's average monthly tax liability to the
8Department does not exceed $200, the Department may authorize
9his returns to be filed on a quarter annual basis, with the
10return for January, February, and March of a given year being
11due by April 20 of such year; with the return for April, May,
12and June of a given year being due by July 20 of such year;
13with the return for July, August, and September of a given year
14being due by October 20 of such year, and with the return for
15October, November, and December of a given year being due by
16January 20 of the following year.
17 If the serviceman's average monthly tax liability to the
18Department does not exceed $50, the Department may authorize
19his returns to be filed on an annual basis, with the return for
20a given year being due by January 20 of the following year.
21 Such quarter annual and annual returns, as to form and
22substance, shall be subject to the same requirements as
23monthly returns.
24 Notwithstanding any other provision in this Act concerning
25the time within which a serviceman may file his return, in the
26case of any serviceman who ceases to engage in a kind of

HB4987- 152 -LRB103 34737 HLH 64585 b
1business which makes him responsible for filing returns under
2this Act, such serviceman shall file a final return under this
3Act with the Department not more than one 1 month after
4discontinuing such business.
5 Beginning October 1, 1993, a taxpayer who has an average
6monthly tax liability of $150,000 or more shall make all
7payments required by rules of the Department by electronic
8funds transfer. Beginning October 1, 1994, a taxpayer who has
9an average monthly tax liability of $100,000 or more shall
10make all payments required by rules of the Department by
11electronic funds transfer. Beginning October 1, 1995, a
12taxpayer who has an average monthly tax liability of $50,000
13or more shall make all payments required by rules of the
14Department by electronic funds transfer. Beginning October 1,
152000, a taxpayer who has an annual tax liability of $200,000 or
16more shall make all payments required by rules of the
17Department by electronic funds transfer. The term "annual tax
18liability" shall be the sum of the taxpayer's liabilities
19under this Act, and under all other State and local occupation
20and use tax laws administered by the Department, for the
21immediately preceding calendar year. The term "average monthly
22tax liability" means the sum of the taxpayer's liabilities
23under this Act, and under all other State and local occupation
24and use tax laws administered by the Department, for the
25immediately preceding calendar year divided by 12. Beginning
26on October 1, 2002, a taxpayer who has a tax liability in the

HB4987- 153 -LRB103 34737 HLH 64585 b
1amount set forth in subsection (b) of Section 2505-210 of the
2Department of Revenue Law shall make all payments required by
3rules of the Department by electronic funds transfer.
4 Before August 1 of each year beginning in 1993, the
5Department shall notify all taxpayers required to make
6payments by electronic funds transfer. All taxpayers required
7to make payments by electronic funds transfer shall make those
8payments for a minimum of one year beginning on October 1.
9 Any taxpayer not required to make payments by electronic
10funds transfer may make payments by electronic funds transfer
11with the permission of the Department.
12 All taxpayers required to make payment by electronic funds
13transfer and any taxpayers authorized to voluntarily make
14payments by electronic funds transfer shall make those
15payments in the manner authorized by the Department.
16 The Department shall adopt such rules as are necessary to
17effectuate a program of electronic funds transfer and the
18requirements of this Section.
19 Where a serviceman collects the tax with respect to the
20selling price of tangible personal property which he sells and
21the purchaser thereafter returns such tangible personal
22property and the serviceman refunds the selling price thereof
23to the purchaser, such serviceman shall also refund, to the
24purchaser, the tax so collected from the purchaser. When
25filing his return for the period in which he refunds such tax
26to the purchaser, the serviceman may deduct the amount of the

HB4987- 154 -LRB103 34737 HLH 64585 b
1tax so refunded by him to the purchaser from any other Service
2Occupation Tax, Service Use Tax, Retailers' Occupation Tax, or
3Use Tax which such serviceman may be required to pay or remit
4to the Department, as shown by such return, provided that the
5amount of the tax to be deducted shall previously have been
6remitted to the Department by such serviceman. If the
7serviceman shall not previously have remitted the amount of
8such tax to the Department, he shall be entitled to no
9deduction hereunder upon refunding such tax to the purchaser.
10 If experience indicates such action to be practicable, the
11Department may prescribe and furnish a combination or joint
12return which will enable servicemen, who are required to file
13returns hereunder and also under the Retailers' Occupation Tax
14Act, the Use Tax Act, or the Service Use Tax Act, to furnish
15all the return information required by all said Acts on the one
16form.
17 Where the serviceman has more than one business registered
18with the Department under separate registrations hereunder,
19such serviceman shall file separate returns for each
20registered business.
21 Beginning January 1, 1990, each month the Department shall
22pay into the Local Government Tax Fund the revenue realized
23for the preceding month from the 1% tax imposed under this Act.
24 Beginning August 1, 2024, each month the State Comptroller
25shall order transferred and the State Treasurer shall transfer
26from the General Revenue Fund to the Local Government Tax Fund

HB4987- 155 -LRB103 34737 HLH 64585 b
1an amount equal to the net revenue that would have been
2realized during the preceding month from sales of the items
3described in items (36) and (37) of Section 3-5 if the tax on
4those items had been imposed at the rate of 1%.
5 Beginning January 1, 1990, each month the Department shall
6pay into the County and Mass Transit District Fund 4% of the
7revenue realized for the preceding month from the 6.25%
8general rate on sales of tangible personal property other than
9aviation fuel sold on or after December 1, 2019. This
10exception for aviation fuel only applies for so long as the
11revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
1247133 are binding on the State.
13 Beginning August 1, 2000, each month the Department shall
14pay into the County and Mass Transit District Fund 20% of the
15net revenue realized for the preceding month from the 1.25%
16rate on the selling price of motor fuel and gasohol.
17 Beginning January 1, 1990, each month the Department shall
18pay into the Local Government Tax Fund 16% of the revenue
19realized for the preceding month from the 6.25% general rate
20on transfers of tangible personal property other than aviation
21fuel sold on or after December 1, 2019. This exception for
22aviation fuel only applies for so long as the revenue use
23requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
24binding on the State.
25 For aviation fuel sold on or after December 1, 2019, each
26month the Department shall pay into the State Aviation Program

HB4987- 156 -LRB103 34737 HLH 64585 b
1Fund 20% of the net revenue realized for the preceding month
2from the 6.25% general rate on the selling price of aviation
3fuel, less an amount estimated by the Department to be
4required for refunds of the 20% portion of the tax on aviation
5fuel under this Act, which amount shall be deposited into the
6Aviation Fuel Sales Tax Refund Fund. The Department shall only
7pay moneys into the State Aviation Program Fund and the
8Aviation Fuel Sales Tax Refund Fund under this Act for so long
9as the revenue use requirements of 49 U.S.C. 47107(b) and 49
10U.S.C. 47133 are binding on the State.
11 Beginning August 1, 2000, each month the Department shall
12pay into the Local Government Tax Fund 80% of the net revenue
13realized for the preceding month from the 1.25% rate on the
14selling price of motor fuel and gasohol.
15 Beginning October 1, 2009, each month the Department shall
16pay into the Capital Projects Fund an amount that is equal to
17an amount estimated by the Department to represent 80% of the
18net revenue realized for the preceding month from the sale of
19candy, grooming and hygiene products, and soft drinks that had
20been taxed at a rate of 1% prior to September 1, 2009 but that
21are now taxed at 6.25%.
22 Beginning July 1, 2013, each month the Department shall
23pay into the Underground Storage Tank Fund from the proceeds
24collected under this Act, the Use Tax Act, the Service Use Tax
25Act, and the Retailers' Occupation Tax Act an amount equal to
26the average monthly deficit in the Underground Storage Tank

HB4987- 157 -LRB103 34737 HLH 64585 b
1Fund during the prior year, as certified annually by the
2Illinois Environmental Protection Agency, but the total
3payment into the Underground Storage Tank Fund under this Act,
4the Use Tax Act, the Service Use Tax Act, and the Retailers'
5Occupation Tax Act shall not exceed $18,000,000 in any State
6fiscal year. As used in this paragraph, the "average monthly
7deficit" shall be equal to the difference between the average
8monthly claims for payment by the fund and the average monthly
9revenues deposited into the fund, excluding payments made
10pursuant to this paragraph.
11 Beginning July 1, 2015, of the remainder of the moneys
12received by the Department under the Use Tax Act, the Service
13Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
14each month the Department shall deposit $500,000 into the
15State Crime Laboratory Fund.
16 Of the remainder of the moneys received by the Department
17pursuant to this Act, (a) 1.75% thereof shall be paid into the
18Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
19and after July 1, 1989, 3.8% thereof shall be paid into the
20Build Illinois Fund; provided, however, that if in any fiscal
21year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
22may be, of the moneys received by the Department and required
23to be paid into the Build Illinois Fund pursuant to Section 3
24of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
25Act, Section 9 of the Service Use Tax Act, and Section 9 of the
26Service Occupation Tax Act, such Acts being hereinafter called

HB4987- 158 -LRB103 34737 HLH 64585 b
1the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
2may be, of moneys being hereinafter called the "Tax Act
3Amount", and (2) the amount transferred to the Build Illinois
4Fund from the State and Local Sales Tax Reform Fund shall be
5less than the Annual Specified Amount (as defined in Section 3
6of the Retailers' Occupation Tax Act), an amount equal to the
7difference shall be immediately paid into the Build Illinois
8Fund from other moneys received by the Department pursuant to
9the Tax Acts; and further provided, that if on the last
10business day of any month the sum of (1) the Tax Act Amount
11required to be deposited into the Build Illinois Account in
12the Build Illinois Fund during such month and (2) the amount
13transferred during such month to the Build Illinois Fund from
14the State and Local Sales Tax Reform Fund shall have been less
15than 1/12 of the Annual Specified Amount, an amount equal to
16the difference shall be immediately paid into the Build
17Illinois Fund from other moneys received by the Department
18pursuant to the Tax Acts; and, further provided, that in no
19event shall the payments required under the preceding proviso
20result in aggregate payments into the Build Illinois Fund
21pursuant to this clause (b) for any fiscal year in excess of
22the greater of (i) the Tax Act Amount or (ii) the Annual
23Specified Amount for such fiscal year; and, further provided,
24that the amounts payable into the Build Illinois Fund under
25this clause (b) shall be payable only until such time as the
26aggregate amount on deposit under each trust indenture

HB4987- 159 -LRB103 34737 HLH 64585 b
1securing Bonds issued and outstanding pursuant to the Build
2Illinois Bond Act is sufficient, taking into account any
3future investment income, to fully provide, in accordance with
4such indenture, for the defeasance of or the payment of the
5principal of, premium, if any, and interest on the Bonds
6secured by such indenture and on any Bonds expected to be
7issued thereafter and all fees and costs payable with respect
8thereto, all as certified by the Director of the Bureau of the
9Budget (now Governor's Office of Management and Budget). If on
10the last business day of any month in which Bonds are
11outstanding pursuant to the Build Illinois Bond Act, the
12aggregate of the moneys deposited in the Build Illinois Bond
13Account in the Build Illinois Fund in such month shall be less
14than the amount required to be transferred in such month from
15the Build Illinois Bond Account to the Build Illinois Bond
16Retirement and Interest Fund pursuant to Section 13 of the
17Build Illinois Bond Act, an amount equal to such deficiency
18shall be immediately paid from other moneys received by the
19Department pursuant to the Tax Acts to the Build Illinois
20Fund; provided, however, that any amounts paid to the Build
21Illinois Fund in any fiscal year pursuant to this sentence
22shall be deemed to constitute payments pursuant to clause (b)
23of the preceding sentence and shall reduce the amount
24otherwise payable for such fiscal year pursuant to clause (b)
25of the preceding sentence. The moneys received by the
26Department pursuant to this Act and required to be deposited

HB4987- 160 -LRB103 34737 HLH 64585 b
1into the Build Illinois Fund are subject to the pledge, claim
2and charge set forth in Section 12 of the Build Illinois Bond
3Act.
4 Subject to payment of amounts into the Build Illinois Fund
5as provided in the preceding paragraph or in any amendment
6thereto hereafter enacted, the following specified monthly
7installment of the amount requested in the certificate of the
8Chairman of the Metropolitan Pier and Exposition Authority
9provided under Section 8.25f of the State Finance Act, but not
10in excess of the sums designated as "Total Deposit", shall be
11deposited in the aggregate from collections under Section 9 of
12the Use Tax Act, Section 9 of the Service Use Tax Act, Section
139 of the Service Occupation Tax Act, and Section 3 of the
14Retailers' Occupation Tax Act into the McCormick Place
15Expansion Project Fund in the specified fiscal years.
16Fiscal YearTotal Deposit
171993 $0
181994 53,000,000
191995 58,000,000
201996 61,000,000
211997 64,000,000
221998 68,000,000
231999 71,000,000
242000 75,000,000
252001 80,000,000

HB4987- 161 -LRB103 34737 HLH 64585 b
12002 93,000,000
22003 99,000,000
32004103,000,000
42005108,000,000
52006113,000,000
62007119,000,000
72008126,000,000
82009132,000,000
92010139,000,000
102011146,000,000
112012153,000,000
122013161,000,000
132014170,000,000
142015179,000,000
152016189,000,000
162017199,000,000
172018210,000,000
182019221,000,000
192020233,000,000
202021300,000,000
212022300,000,000
222023300,000,000
232024 300,000,000
242025 300,000,000
252026 300,000,000
262027 375,000,000

HB4987- 162 -LRB103 34737 HLH 64585 b
12028 375,000,000
22029 375,000,000
32030 375,000,000
42031 375,000,000
52032 375,000,000
62033 375,000,000
72034375,000,000
82035375,000,000
92036450,000,000
10and
11each fiscal year
12thereafter that bonds
13are outstanding under
14Section 13.2 of the
15Metropolitan Pier and
16Exposition Authority Act,
17but not after fiscal year 2060.
18 Beginning July 20, 1993 and in each month of each fiscal
19year thereafter, one-eighth of the amount requested in the
20certificate of the Chairman of the Metropolitan Pier and
21Exposition Authority for that fiscal year, less the amount
22deposited into the McCormick Place Expansion Project Fund by
23the State Treasurer in the respective month under subsection
24(g) of Section 13 of the Metropolitan Pier and Exposition
25Authority Act, plus cumulative deficiencies in the deposits
26required under this Section for previous months and years,

HB4987- 163 -LRB103 34737 HLH 64585 b
1shall be deposited into the McCormick Place Expansion Project
2Fund, until the full amount requested for the fiscal year, but
3not in excess of the amount specified above as "Total
4Deposit", has been deposited.
5 Subject to payment of amounts into the Capital Projects
6Fund, the Build Illinois Fund, and the McCormick Place
7Expansion Project Fund pursuant to the preceding paragraphs or
8in any amendments thereto hereafter enacted, for aviation fuel
9sold on or after December 1, 2019, the Department shall each
10month deposit into the Aviation Fuel Sales Tax Refund Fund an
11amount estimated by the Department to be required for refunds
12of the 80% portion of the tax on aviation fuel under this Act.
13The Department shall only deposit moneys into the Aviation
14Fuel Sales Tax Refund Fund under this paragraph for so long as
15the revenue use requirements of 49 U.S.C. 47107(b) and 49
16U.S.C. 47133 are binding on the State.
17 Subject to payment of amounts into the Build Illinois Fund
18and the McCormick Place Expansion Project Fund pursuant to the
19preceding paragraphs or in any amendments thereto hereafter
20enacted, beginning July 1, 1993 and ending on September 30,
212013, the Department shall each month pay into the Illinois
22Tax Increment Fund 0.27% of 80% of the net revenue realized for
23the preceding month from the 6.25% general rate on the selling
24price of tangible personal property.
25 Subject to payment of amounts into the Build Illinois
26Fund, the McCormick Place Expansion Project Fund, and the

HB4987- 164 -LRB103 34737 HLH 64585 b
1Illinois Tax Increment Fund pursuant to the preceding
2paragraphs or in any amendments to this Section hereafter
3enacted, beginning on the first day of the first calendar
4month to occur on or after August 26, 2014 (the effective date
5of Public Act 98-1098), each month, from the collections made
6under Section 9 of the Use Tax Act, Section 9 of the Service
7Use Tax Act, Section 9 of the Service Occupation Tax Act, and
8Section 3 of the Retailers' Occupation Tax Act, the Department
9shall pay into the Tax Compliance and Administration Fund, to
10be used, subject to appropriation, to fund additional auditors
11and compliance personnel at the Department of Revenue, an
12amount equal to 1/12 of 5% of 80% of the cash receipts
13collected during the preceding fiscal year by the Audit Bureau
14of the Department under the Use Tax Act, the Service Use Tax
15Act, the Service Occupation Tax Act, the Retailers' Occupation
16Tax Act, and associated local occupation and use taxes
17administered by the Department.
18 Subject to payments of amounts into the Build Illinois
19Fund, the McCormick Place Expansion Project Fund, the Illinois
20Tax Increment Fund, and the Tax Compliance and Administration
21Fund as provided in this Section, beginning on July 1, 2018 the
22Department shall pay each month into the Downstate Public
23Transportation Fund the moneys required to be so paid under
24Section 2-3 of the Downstate Public Transportation Act.
25 Subject to successful execution and delivery of a
26public-private agreement between the public agency and private

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1entity and completion of the civic build, beginning on July 1,
22023, of the remainder of the moneys received by the
3Department under the Use Tax Act, the Service Use Tax Act, the
4Service Occupation Tax Act, and this Act, the Department shall
5deposit the following specified deposits in the aggregate from
6collections under the Use Tax Act, the Service Use Tax Act, the
7Service Occupation Tax Act, and the Retailers' Occupation Tax
8Act, as required under Section 8.25g of the State Finance Act
9for distribution consistent with the Public-Private
10Partnership for Civic and Transit Infrastructure Project Act.
11The moneys received by the Department pursuant to this Act and
12required to be deposited into the Civic and Transit
13Infrastructure Fund are subject to the pledge, claim and
14charge set forth in Section 25-55 of the Public-Private
15Partnership for Civic and Transit Infrastructure Project Act.
16As used in this paragraph, "civic build", "private entity",
17"public-private agreement", and "public agency" have the
18meanings provided in Section 25-10 of the Public-Private
19Partnership for Civic and Transit Infrastructure Project Act.
20 Fiscal Year............................Total Deposit
21 2024....................................$200,000,000
22 2025....................................$206,000,000
23 2026....................................$212,200,000
24 2027....................................$218,500,000
25 2028....................................$225,100,000
26 2029....................................$288,700,000

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1 2030....................................$298,900,000
2 2031....................................$309,300,000
3 2032....................................$320,100,000
4 2033....................................$331,200,000
5 2034....................................$341,200,000
6 2035....................................$351,400,000
7 2036....................................$361,900,000
8 2037....................................$372,800,000
9 2038....................................$384,000,000
10 2039....................................$395,500,000
11 2040....................................$407,400,000
12 2041....................................$419,600,000
13 2042....................................$432,200,000
14 2043....................................$445,100,000
15 Beginning July 1, 2021 and until July 1, 2022, subject to
16the payment of amounts into the County and Mass Transit
17District Fund, the Local Government Tax Fund, the Build
18Illinois Fund, the McCormick Place Expansion Project Fund, the
19Illinois Tax Increment Fund, and the Tax Compliance and
20Administration Fund as provided in this Section, the
21Department shall pay each month into the Road Fund the amount
22estimated to represent 16% of the net revenue realized from
23the taxes imposed on motor fuel and gasohol. Beginning July 1,
242022 and until July 1, 2023, subject to the payment of amounts
25into the County and Mass Transit District Fund, the Local
26Government Tax Fund, the Build Illinois Fund, the McCormick

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1Place Expansion Project Fund, the Illinois Tax Increment Fund,
2and the Tax Compliance and Administration Fund as provided in
3this Section, the Department shall pay each month into the
4Road Fund the amount estimated to represent 32% of the net
5revenue realized from the taxes imposed on motor fuel and
6gasohol. Beginning July 1, 2023 and until July 1, 2024,
7subject to the payment of amounts into the County and Mass
8Transit District Fund, the Local Government Tax Fund, the
9Build Illinois Fund, the McCormick Place Expansion Project
10Fund, the Illinois Tax Increment Fund, and the Tax Compliance
11and Administration Fund as provided in this Section, the
12Department shall pay each month into the Road Fund the amount
13estimated to represent 48% of the net revenue realized from
14the taxes imposed on motor fuel and gasohol. Beginning July 1,
152024 and until July 1, 2025, subject to the payment of amounts
16into the County and Mass Transit District Fund, the Local
17Government Tax Fund, the Build Illinois Fund, the McCormick
18Place Expansion Project Fund, the Illinois Tax Increment Fund,
19and the Tax Compliance and Administration Fund as provided in
20this Section, the Department shall pay each month into the
21Road Fund the amount estimated to represent 64% of the net
22revenue realized from the taxes imposed on motor fuel and
23gasohol. Beginning on July 1, 2025, subject to the payment of
24amounts into the County and Mass Transit District Fund, the
25Local Government Tax Fund, the Build Illinois Fund, the
26McCormick Place Expansion Project Fund, the Illinois Tax

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1Increment Fund, and the Tax Compliance and Administration Fund
2as provided in this Section, the Department shall pay each
3month into the Road Fund the amount estimated to represent 80%
4of the net revenue realized from the taxes imposed on motor
5fuel and gasohol. As used in this paragraph "motor fuel" has
6the meaning given to that term in Section 1.1 of the Motor Fuel
7Tax Law, and "gasohol" has the meaning given to that term in
8Section 3-40 of the Use Tax Act.
9 Of the remainder of the moneys received by the Department
10pursuant to this Act, 75% shall be paid into the General
11Revenue Fund of the State treasury Treasury and 25% shall be
12reserved in a special account and used only for the transfer to
13the Common School Fund as part of the monthly transfer from the
14General Revenue Fund in accordance with Section 8a of the
15State Finance Act.
16 The Department may, upon separate written notice to a
17taxpayer, require the taxpayer to prepare and file with the
18Department on a form prescribed by the Department within not
19less than 60 days after receipt of the notice an annual
20information return for the tax year specified in the notice.
21Such annual return to the Department shall include a statement
22of gross receipts as shown by the taxpayer's last federal
23Federal income tax return. If the total receipts of the
24business as reported in the federal Federal income tax return
25do not agree with the gross receipts reported to the
26Department of Revenue for the same period, the taxpayer shall

HB4987- 169 -LRB103 34737 HLH 64585 b
1attach to his annual return a schedule showing a
2reconciliation of the 2 amounts and the reasons for the
3difference. The taxpayer's annual return to the Department
4shall also disclose the cost of goods sold by the taxpayer
5during the year covered by such return, opening and closing
6inventories of such goods for such year, cost of goods used
7from stock or taken from stock and given away by the taxpayer
8during such year, pay roll information of the taxpayer's
9business during such year and any additional reasonable
10information which the Department deems would be helpful in
11determining the accuracy of the monthly, quarterly or annual
12returns filed by such taxpayer as hereinbefore provided for in
13this Section.
14 If the annual information return required by this Section
15is not filed when and as required, the taxpayer shall be liable
16as follows:
17 (i) Until January 1, 1994, the taxpayer shall be
18 liable for a penalty equal to 1/6 of 1% of the tax due from
19 such taxpayer under this Act during the period to be
20 covered by the annual return for each month or fraction of
21 a month until such return is filed as required, the
22 penalty to be assessed and collected in the same manner as
23 any other penalty provided for in this Act.
24 (ii) On and after January 1, 1994, the taxpayer shall
25 be liable for a penalty as described in Section 3-4 of the
26 Uniform Penalty and Interest Act.

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1 The chief executive officer, proprietor, owner, or highest
2ranking manager shall sign the annual return to certify the
3accuracy of the information contained therein. Any person who
4willfully signs the annual return containing false or
5inaccurate information shall be guilty of perjury and punished
6accordingly. The annual return form prescribed by the
7Department shall include a warning that the person signing the
8return may be liable for perjury.
9 The foregoing portion of this Section concerning the
10filing of an annual information return shall not apply to a
11serviceman who is not required to file an income tax return
12with the United States Government.
13 As soon as possible after the first day of each month, upon
14certification of the Department of Revenue, the Comptroller
15shall order transferred and the Treasurer shall transfer from
16the General Revenue Fund to the Motor Fuel Tax Fund an amount
17equal to 1.7% of 80% of the net revenue realized under this Act
18for the second preceding month. Beginning April 1, 2000, this
19transfer is no longer required and shall not be made.
20 Net revenue realized for a month shall be the revenue
21collected by the State pursuant to this Act, less the amount
22paid out during that month as refunds to taxpayers for
23overpayment of liability.
24 For greater simplicity of administration, it shall be
25permissible for manufacturers, importers and wholesalers whose
26products are sold by numerous servicemen in Illinois, and who

HB4987- 171 -LRB103 34737 HLH 64585 b
1wish to do so, to assume the responsibility for accounting and
2paying to the Department all tax accruing under this Act with
3respect to such sales, if the servicemen who are affected do
4not make written objection to the Department to this
5arrangement.
6(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23;
7103-363, eff. 7-28-23; revised 9-25-23.)
8 Section 25.
The Retailers' Occupation Tax Act is amended
9by changing Sections 2-5, 2-10, and 3 as follows:
10 (35 ILCS 120/2-5)
11 Sec. 2-5. Exemptions. Gross receipts from proceeds from
12the sale of the following tangible personal property are
13exempt from the tax imposed by this Act:
14 (1) Farm chemicals.
15 (2) Farm machinery and equipment, both new and used,
16 including that manufactured on special order, certified by
17 the purchaser to be used primarily for production
18 agriculture or State or federal agricultural programs,
19 including individual replacement parts for the machinery
20 and equipment, including machinery and equipment purchased
21 for lease, and including implements of husbandry defined
22 in Section 1-130 of the Illinois Vehicle Code, farm
23 machinery and agricultural chemical and fertilizer
24 spreaders, and nurse wagons required to be registered

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1 under Section 3-809 of the Illinois Vehicle Code, but
2 excluding other motor vehicles required to be registered
3 under the Illinois Vehicle Code. Horticultural polyhouses
4 or hoop houses used for propagating, growing, or
5 overwintering plants shall be considered farm machinery
6 and equipment under this item (2). Agricultural chemical
7 tender tanks and dry boxes shall include units sold
8 separately from a motor vehicle required to be licensed
9 and units sold mounted on a motor vehicle required to be
10 licensed, if the selling price of the tender is separately
11 stated.
12 Farm machinery and equipment shall include precision
13 farming equipment that is installed or purchased to be
14 installed on farm machinery and equipment including, but
15 not limited to, tractors, harvesters, sprayers, planters,
16 seeders, or spreaders. Precision farming equipment
17 includes, but is not limited to, soil testing sensors,
18 computers, monitors, software, global positioning and
19 mapping systems, and other such equipment.
20 Farm machinery and equipment also includes computers,
21 sensors, software, and related equipment used primarily in
22 the computer-assisted operation of production agriculture
23 facilities, equipment, and activities such as, but not
24 limited to, the collection, monitoring, and correlation of
25 animal and crop data for the purpose of formulating animal
26 diets and agricultural chemicals.

HB4987- 173 -LRB103 34737 HLH 64585 b
1 Beginning on January 1, 2024, farm machinery and
2 equipment also includes electrical power generation
3 equipment used primarily for production agriculture.
4 This item (2) is exempt from the provisions of Section
5 2-70.
6 (3) Until July 1, 2003, distillation machinery and
7 equipment, sold as a unit or kit, assembled or installed
8 by the retailer, certified by the user to be used only for
9 the production of ethyl alcohol that will be used for
10 consumption as motor fuel or as a component of motor fuel
11 for the personal use of the user, and not subject to sale
12 or resale.
13 (4) Until July 1, 2003 and beginning again September
14 1, 2004 through August 30, 2014, graphic arts machinery
15 and equipment, including repair and replacement parts,
16 both new and used, and including that manufactured on
17 special order or purchased for lease, certified by the
18 purchaser to be used primarily for graphic arts
19 production. Equipment includes chemicals or chemicals
20 acting as catalysts but only if the chemicals or chemicals
21 acting as catalysts effect a direct and immediate change
22 upon a graphic arts product. Beginning on July 1, 2017,
23 graphic arts machinery and equipment is included in the
24 manufacturing and assembling machinery and equipment
25 exemption under paragraph (14).
26 (5) A motor vehicle that is used for automobile

HB4987- 174 -LRB103 34737 HLH 64585 b
1 renting, as defined in the Automobile Renting Occupation
2 and Use Tax Act. This paragraph is exempt from the
3 provisions of Section 2-70.
4 (6) Personal property sold by a teacher-sponsored
5 student organization affiliated with an elementary or
6 secondary school located in Illinois.
7 (7) Until July 1, 2003, proceeds of that portion of
8 the selling price of a passenger car the sale of which is
9 subject to the Replacement Vehicle Tax.
10 (8) Personal property sold to an Illinois county fair
11 association for use in conducting, operating, or promoting
12 the county fair.
13 (9) Personal property sold to a not-for-profit arts or
14 cultural organization that establishes, by proof required
15 by the Department by rule, that it has received an
16 exemption under Section 501(c)(3) of the Internal Revenue
17 Code and that is organized and operated primarily for the
18 presentation or support of arts or cultural programming,
19 activities, or services. These organizations include, but
20 are not limited to, music and dramatic arts organizations
21 such as symphony orchestras and theatrical groups, arts
22 and cultural service organizations, local arts councils,
23 visual arts organizations, and media arts organizations.
24 On and after July 1, 2001 (the effective date of Public Act
25 92-35), however, an entity otherwise eligible for this
26 exemption shall not make tax-free purchases unless it has

HB4987- 175 -LRB103 34737 HLH 64585 b
1 an active identification number issued by the Department.
2 (10) Personal property sold by a corporation, society,
3 association, foundation, institution, or organization,
4 other than a limited liability company, that is organized
5 and operated as a not-for-profit service enterprise for
6 the benefit of persons 65 years of age or older if the
7 personal property was not purchased by the enterprise for
8 the purpose of resale by the enterprise.
9 (11) Except as otherwise provided in this Section,
10 personal property sold to a governmental body, to a
11 corporation, society, association, foundation, or
12 institution organized and operated exclusively for
13 charitable, religious, or educational purposes, or to a
14 not-for-profit corporation, society, association,
15 foundation, institution, or organization that has no
16 compensated officers or employees and that is organized
17 and operated primarily for the recreation of persons 55
18 years of age or older. A limited liability company may
19 qualify for the exemption under this paragraph only if the
20 limited liability company is organized and operated
21 exclusively for educational purposes. On and after July 1,
22 1987, however, no entity otherwise eligible for this
23 exemption shall make tax-free purchases unless it has an
24 active identification number issued by the Department.
25 (12) (Blank).
26 (12-5) On and after July 1, 2003 and through June 30,

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1 2004, motor vehicles of the second division with a gross
2 vehicle weight in excess of 8,000 pounds that are subject
3 to the commercial distribution fee imposed under Section
4 3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
5 2004 and through June 30, 2005, the use in this State of
6 motor vehicles of the second division: (i) with a gross
7 vehicle weight rating in excess of 8,000 pounds; (ii) that
8 are subject to the commercial distribution fee imposed
9 under Section 3-815.1 of the Illinois Vehicle Code; and
10 (iii) that are primarily used for commercial purposes.
11 Through June 30, 2005, this exemption applies to repair
12 and replacement parts added after the initial purchase of
13 such a motor vehicle if that motor vehicle is used in a
14 manner that would qualify for the rolling stock exemption
15 otherwise provided for in this Act. For purposes of this
16 paragraph, "used for commercial purposes" means the
17 transportation of persons or property in furtherance of
18 any commercial or industrial enterprise whether for-hire
19 or not.
20 (13) Proceeds from sales to owners, lessors, or
21 shippers of tangible personal property that is utilized by
22 interstate carriers for hire for use as rolling stock
23 moving in interstate commerce and equipment operated by a
24 telecommunications provider, licensed as a common carrier
25 by the Federal Communications Commission, which is
26 permanently installed in or affixed to aircraft moving in

HB4987- 177 -LRB103 34737 HLH 64585 b
1 interstate commerce.
2 (14) Machinery and equipment that will be used by the
3 purchaser, or a lessee of the purchaser, primarily in the
4 process of manufacturing or assembling tangible personal
5 property for wholesale or retail sale or lease, whether
6 the sale or lease is made directly by the manufacturer or
7 by some other person, whether the materials used in the
8 process are owned by the manufacturer or some other
9 person, or whether the sale or lease is made apart from or
10 as an incident to the seller's engaging in the service
11 occupation of producing machines, tools, dies, jigs,
12 patterns, gauges, or other similar items of no commercial
13 value on special order for a particular purchaser. The
14 exemption provided by this paragraph (14) does not include
15 machinery and equipment used in (i) the generation of
16 electricity for wholesale or retail sale; (ii) the
17 generation or treatment of natural or artificial gas for
18 wholesale or retail sale that is delivered to customers
19 through pipes, pipelines, or mains; or (iii) the treatment
20 of water for wholesale or retail sale that is delivered to
21 customers through pipes, pipelines, or mains. The
22 provisions of Public Act 98-583 are declaratory of
23 existing law as to the meaning and scope of this
24 exemption. Beginning on July 1, 2017, the exemption
25 provided by this paragraph (14) includes, but is not
26 limited to, graphic arts machinery and equipment, as

HB4987- 178 -LRB103 34737 HLH 64585 b
1 defined in paragraph (4) of this Section.
2 (15) Proceeds of mandatory service charges separately
3 stated on customers' bills for purchase and consumption of
4 food and beverages, to the extent that the proceeds of the
5 service charge are in fact turned over as tips or as a
6 substitute for tips to the employees who participate
7 directly in preparing, serving, hosting or cleaning up the
8 food or beverage function with respect to which the
9 service charge is imposed.
10 (16) Tangible personal property sold to a purchaser if
11 the purchaser is exempt from use tax by operation of
12 federal law. This paragraph is exempt from the provisions
13 of Section 2-70.
14 (17) Tangible personal property sold to a common
15 carrier by rail or motor that receives the physical
16 possession of the property in Illinois and that transports
17 the property, or shares with another common carrier in the
18 transportation of the property, out of Illinois on a
19 standard uniform bill of lading showing the seller of the
20 property as the shipper or consignor of the property to a
21 destination outside Illinois, for use outside Illinois.
22 (18) Legal tender, currency, medallions, or gold or
23 silver coinage issued by the State of Illinois, the
24 government of the United States of America, or the
25 government of any foreign country, and bullion.
26 (19) Until July 1, 2003, oil field exploration,

HB4987- 179 -LRB103 34737 HLH 64585 b
1 drilling, and production equipment, including (i) rigs and
2 parts of rigs, rotary rigs, cable tool rigs, and workover
3 rigs, (ii) pipe and tubular goods, including casing and
4 drill strings, (iii) pumps and pump-jack units, (iv)
5 storage tanks and flow lines, (v) any individual
6 replacement part for oil field exploration, drilling, and
7 production equipment, and (vi) machinery and equipment
8 purchased for lease; but excluding motor vehicles required
9 to be registered under the Illinois Vehicle Code.
10 (20) Photoprocessing machinery and equipment,
11 including repair and replacement parts, both new and used,
12 including that manufactured on special order, certified by
13 the purchaser to be used primarily for photoprocessing,
14 and including photoprocessing machinery and equipment
15 purchased for lease.
16 (21) Until July 1, 2028, coal and aggregate
17 exploration, mining, off-highway hauling, processing,
18 maintenance, and reclamation equipment, including
19 replacement parts and equipment, and including equipment
20 purchased for lease, but excluding motor vehicles required
21 to be registered under the Illinois Vehicle Code. The
22 changes made to this Section by Public Act 97-767 apply on
23 and after July 1, 2003, but no claim for credit or refund
24 is allowed on or after August 16, 2013 (the effective date
25 of Public Act 98-456) for such taxes paid during the
26 period beginning July 1, 2003 and ending on August 16,

HB4987- 180 -LRB103 34737 HLH 64585 b
1 2013 (the effective date of Public Act 98-456).
2 (22) Until June 30, 2013, fuel and petroleum products
3 sold to or used by an air carrier, certified by the carrier
4 to be used for consumption, shipment, or storage in the
5 conduct of its business as an air common carrier, for a
6 flight destined for or returning from a location or
7 locations outside the United States without regard to
8 previous or subsequent domestic stopovers.
9 Beginning July 1, 2013, fuel and petroleum products
10 sold to or used by an air carrier, certified by the carrier
11 to be used for consumption, shipment, or storage in the
12 conduct of its business as an air common carrier, for a
13 flight that (i) is engaged in foreign trade or is engaged
14 in trade between the United States and any of its
15 possessions and (ii) transports at least one individual or
16 package for hire from the city of origination to the city
17 of final destination on the same aircraft, without regard
18 to a change in the flight number of that aircraft.
19 (23) A transaction in which the purchase order is
20 received by a florist who is located outside Illinois, but
21 who has a florist located in Illinois deliver the property
22 to the purchaser or the purchaser's donee in Illinois.
23 (24) Fuel consumed or used in the operation of ships,
24 barges, or vessels that are used primarily in or for the
25 transportation of property or the conveyance of persons
26 for hire on rivers bordering on this State if the fuel is

HB4987- 181 -LRB103 34737 HLH 64585 b
1 delivered by the seller to the purchaser's barge, ship, or
2 vessel while it is afloat upon that bordering river.
3 (25) Except as provided in item (25-5) of this
4 Section, a motor vehicle sold in this State to a
5 nonresident even though the motor vehicle is delivered to
6 the nonresident in this State, if the motor vehicle is not
7 to be titled in this State, and if a drive-away permit is
8 issued to the motor vehicle as provided in Section 3-603
9 of the Illinois Vehicle Code or if the nonresident
10 purchaser has vehicle registration plates to transfer to
11 the motor vehicle upon returning to his or her home state.
12 The issuance of the drive-away permit or having the
13 out-of-state registration plates to be transferred is
14 prima facie evidence that the motor vehicle will not be
15 titled in this State.
16 (25-5) The exemption under item (25) does not apply if
17 the state in which the motor vehicle will be titled does
18 not allow a reciprocal exemption for a motor vehicle sold
19 and delivered in that state to an Illinois resident but
20 titled in Illinois. The tax collected under this Act on
21 the sale of a motor vehicle in this State to a resident of
22 another state that does not allow a reciprocal exemption
23 shall be imposed at a rate equal to the state's rate of tax
24 on taxable property in the state in which the purchaser is
25 a resident, except that the tax shall not exceed the tax
26 that would otherwise be imposed under this Act. At the

HB4987- 182 -LRB103 34737 HLH 64585 b
1 time of the sale, the purchaser shall execute a statement,
2 signed under penalty of perjury, of his or her intent to
3 title the vehicle in the state in which the purchaser is a
4 resident within 30 days after the sale and of the fact of
5 the payment to the State of Illinois of tax in an amount
6 equivalent to the state's rate of tax on taxable property
7 in his or her state of residence and shall submit the
8 statement to the appropriate tax collection agency in his
9 or her state of residence. In addition, the retailer must
10 retain a signed copy of the statement in his or her
11 records. Nothing in this item shall be construed to
12 require the removal of the vehicle from this state
13 following the filing of an intent to title the vehicle in
14 the purchaser's state of residence if the purchaser titles
15 the vehicle in his or her state of residence within 30 days
16 after the date of sale. The tax collected under this Act in
17 accordance with this item (25-5) shall be proportionately
18 distributed as if the tax were collected at the 6.25%
19 general rate imposed under this Act.
20 (25-7) Beginning on July 1, 2007, no tax is imposed
21 under this Act on the sale of an aircraft, as defined in
22 Section 3 of the Illinois Aeronautics Act, if all of the
23 following conditions are met:
24 (1) the aircraft leaves this State within 15 days
25 after the later of either the issuance of the final
26 billing for the sale of the aircraft, or the

HB4987- 183 -LRB103 34737 HLH 64585 b
1 authorized approval for return to service, completion
2 of the maintenance record entry, and completion of the
3 test flight and ground test for inspection, as
4 required by 14 CFR 91.407;
5 (2) the aircraft is not based or registered in
6 this State after the sale of the aircraft; and
7 (3) the seller retains in his or her books and
8 records and provides to the Department a signed and
9 dated certification from the purchaser, on a form
10 prescribed by the Department, certifying that the
11 requirements of this item (25-7) are met. The
12 certificate must also include the name and address of
13 the purchaser, the address of the location where the
14 aircraft is to be titled or registered, the address of
15 the primary physical location of the aircraft, and
16 other information that the Department may reasonably
17 require.
18 For purposes of this item (25-7):
19 "Based in this State" means hangared, stored, or
20 otherwise used, excluding post-sale customizations as
21 defined in this Section, for 10 or more days in each
22 12-month period immediately following the date of the sale
23 of the aircraft.
24 "Registered in this State" means an aircraft
25 registered with the Department of Transportation,
26 Aeronautics Division, or titled or registered with the

HB4987- 184 -LRB103 34737 HLH 64585 b
1 Federal Aviation Administration to an address located in
2 this State.
3 This paragraph (25-7) is exempt from the provisions of
4 Section 2-70.
5 (26) Semen used for artificial insemination of
6 livestock for direct agricultural production.
7 (27) Horses, or interests in horses, registered with
8 and meeting the requirements of any of the Arabian Horse
9 Club Registry of America, Appaloosa Horse Club, American
10 Quarter Horse Association, United States Trotting
11 Association, or Jockey Club, as appropriate, used for
12 purposes of breeding or racing for prizes. This item (27)
13 is exempt from the provisions of Section 2-70, and the
14 exemption provided for under this item (27) applies for
15 all periods beginning May 30, 1995, but no claim for
16 credit or refund is allowed on or after January 1, 2008
17 (the effective date of Public Act 95-88) for such taxes
18 paid during the period beginning May 30, 2000 and ending
19 on January 1, 2008 (the effective date of Public Act
20 95-88).
21 (28) Computers and communications equipment utilized
22 for any hospital purpose and equipment used in the
23 diagnosis, analysis, or treatment of hospital patients
24 sold to a lessor who leases the equipment, under a lease of
25 one year or longer executed or in effect at the time of the
26 purchase, to a hospital that has been issued an active tax

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1 exemption identification number by the Department under
2 Section 1g of this Act.
3 (29) Personal property sold to a lessor who leases the
4 property, under a lease of one year or longer executed or
5 in effect at the time of the purchase, to a governmental
6 body that has been issued an active tax exemption
7 identification number by the Department under Section 1g
8 of this Act.
9 (30) Beginning with taxable years ending on or after
10 December 31, 1995 and ending with taxable years ending on
11 or before December 31, 2004, personal property that is
12 donated for disaster relief to be used in a State or
13 federally declared disaster area in Illinois or bordering
14 Illinois by a manufacturer or retailer that is registered
15 in this State to a corporation, society, association,
16 foundation, or institution that has been issued a sales
17 tax exemption identification number by the Department that
18 assists victims of the disaster who reside within the
19 declared disaster area.
20 (31) Beginning with taxable years ending on or after
21 December 31, 1995 and ending with taxable years ending on
22 or before December 31, 2004, personal property that is
23 used in the performance of infrastructure repairs in this
24 State, including, but not limited to, municipal roads and
25 streets, access roads, bridges, sidewalks, waste disposal
26 systems, water and sewer line extensions, water

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1 distribution and purification facilities, storm water
2 drainage and retention facilities, and sewage treatment
3 facilities, resulting from a State or federally declared
4 disaster in Illinois or bordering Illinois when such
5 repairs are initiated on facilities located in the
6 declared disaster area within 6 months after the disaster.
7 (32) Beginning July 1, 1999, game or game birds sold
8 at a "game breeding and hunting preserve area" as that
9 term is used in the Wildlife Code. This paragraph is
10 exempt from the provisions of Section 2-70.
11 (33) A motor vehicle, as that term is defined in
12 Section 1-146 of the Illinois Vehicle Code, that is
13 donated to a corporation, limited liability company,
14 society, association, foundation, or institution that is
15 determined by the Department to be organized and operated
16 exclusively for educational purposes. For purposes of this
17 exemption, "a corporation, limited liability company,
18 society, association, foundation, or institution organized
19 and operated exclusively for educational purposes" means
20 all tax-supported public schools, private schools that
21 offer systematic instruction in useful branches of
22 learning by methods common to public schools and that
23 compare favorably in their scope and intensity with the
24 course of study presented in tax-supported schools, and
25 vocational or technical schools or institutes organized
26 and operated exclusively to provide a course of study of

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1 not less than 6 weeks duration and designed to prepare
2 individuals to follow a trade or to pursue a manual,
3 technical, mechanical, industrial, business, or commercial
4 occupation.
5 (34) Beginning January 1, 2000, personal property,
6 including food, purchased through fundraising events for
7 the benefit of a public or private elementary or secondary
8 school, a group of those schools, or one or more school
9 districts if the events are sponsored by an entity
10 recognized by the school district that consists primarily
11 of volunteers and includes parents and teachers of the
12 school children. This paragraph does not apply to
13 fundraising events (i) for the benefit of private home
14 instruction or (ii) for which the fundraising entity
15 purchases the personal property sold at the events from
16 another individual or entity that sold the property for
17 the purpose of resale by the fundraising entity and that
18 profits from the sale to the fundraising entity. This
19 paragraph is exempt from the provisions of Section 2-70.
20 (35) Beginning January 1, 2000 and through December
21 31, 2001, new or used automatic vending machines that
22 prepare and serve hot food and beverages, including
23 coffee, soup, and other items, and replacement parts for
24 these machines. Beginning January 1, 2002 and through June
25 30, 2003, machines and parts for machines used in
26 commercial, coin-operated amusement and vending business

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1 if a use or occupation tax is paid on the gross receipts
2 derived from the use of the commercial, coin-operated
3 amusement and vending machines. This paragraph is exempt
4 from the provisions of Section 2-70.
5 (35-5) Beginning August 23, 2001 and through June 30,
6 2016, food for human consumption that is to be consumed
7 off the premises where it is sold (other than alcoholic
8 beverages, soft drinks, and food that has been prepared
9 for immediate consumption) and prescription and
10 nonprescription medicines, drugs, medical appliances, and
11 insulin, urine testing materials, syringes, and needles
12 used by diabetics, for human use, when purchased for use
13 by a person receiving medical assistance under Article V
14 of the Illinois Public Aid Code who resides in a licensed
15 long-term care facility, as defined in the Nursing Home
16 Care Act, or a licensed facility as defined in the ID/DD
17 Community Care Act, the MC/DD Act, or the Specialized
18 Mental Health Rehabilitation Act of 2013.
19 (36) Beginning August 2, 2001, computers and
20 communications equipment utilized for any hospital purpose
21 and equipment used in the diagnosis, analysis, or
22 treatment of hospital patients sold to a lessor who leases
23 the equipment, under a lease of one year or longer
24 executed or in effect at the time of the purchase, to a
25 hospital that has been issued an active tax exemption
26 identification number by the Department under Section 1g

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1 of this Act. This paragraph is exempt from the provisions
2 of Section 2-70.
3 (37) Beginning August 2, 2001, personal property sold
4 to a lessor who leases the property, under a lease of one
5 year or longer executed or in effect at the time of the
6 purchase, to a governmental body that has been issued an
7 active tax exemption identification number by the
8 Department under Section 1g of this Act. This paragraph is
9 exempt from the provisions of Section 2-70.
10 (38) Beginning on January 1, 2002 and through June 30,
11 2016, tangible personal property purchased from an
12 Illinois retailer by a taxpayer engaged in centralized
13 purchasing activities in Illinois who will, upon receipt
14 of the property in Illinois, temporarily store the
15 property in Illinois (i) for the purpose of subsequently
16 transporting it outside this State for use or consumption
17 thereafter solely outside this State or (ii) for the
18 purpose of being processed, fabricated, or manufactured
19 into, attached to, or incorporated into other tangible
20 personal property to be transported outside this State and
21 thereafter used or consumed solely outside this State. The
22 Director of Revenue shall, pursuant to rules adopted in
23 accordance with the Illinois Administrative Procedure Act,
24 issue a permit to any taxpayer in good standing with the
25 Department who is eligible for the exemption under this
26 paragraph (38). The permit issued under this paragraph

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1 (38) shall authorize the holder, to the extent and in the
2 manner specified in the rules adopted under this Act, to
3 purchase tangible personal property from a retailer exempt
4 from the taxes imposed by this Act. Taxpayers shall
5 maintain all necessary books and records to substantiate
6 the use and consumption of all such tangible personal
7 property outside of the State of Illinois.
8 (39) Beginning January 1, 2008, tangible personal
9 property used in the construction or maintenance of a
10 community water supply, as defined under Section 3.145 of
11 the Environmental Protection Act, that is operated by a
12 not-for-profit corporation that holds a valid water supply
13 permit issued under Title IV of the Environmental
14 Protection Act. This paragraph is exempt from the
15 provisions of Section 2-70.
16 (40) Beginning January 1, 2010 and continuing through
17 December 31, 2029, materials, parts, equipment,
18 components, and furnishings incorporated into or upon an
19 aircraft as part of the modification, refurbishment,
20 completion, replacement, repair, or maintenance of the
21 aircraft. This exemption includes consumable supplies used
22 in the modification, refurbishment, completion,
23 replacement, repair, and maintenance of aircraft. However,
24 until January 1, 2024, this exemption excludes any
25 materials, parts, equipment, components, and consumable
26 supplies used in the modification, replacement, repair,

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1 and maintenance of aircraft engines or power plants,
2 whether such engines or power plants are installed or
3 uninstalled upon any such aircraft. "Consumable supplies"
4 include, but are not limited to, adhesive, tape,
5 sandpaper, general purpose lubricants, cleaning solution,
6 latex gloves, and protective films.
7 Beginning January 1, 2010 and continuing through
8 December 31, 2023, this exemption applies only to the sale
9 of qualifying tangible personal property to persons who
10 modify, refurbish, complete, replace, or maintain an
11 aircraft and who (i) hold an Air Agency Certificate and
12 are empowered to operate an approved repair station by the
13 Federal Aviation Administration, (ii) have a Class IV
14 Rating, and (iii) conduct operations in accordance with
15 Part 145 of the Federal Aviation Regulations. The
16 exemption does not include aircraft operated by a
17 commercial air carrier providing scheduled passenger air
18 service pursuant to authority issued under Part 121 or
19 Part 129 of the Federal Aviation Regulations. From January
20 1, 2024 through December 31, 2029, this exemption applies
21 only to the use of qualifying tangible personal property
22 by: (A) persons who modify, refurbish, complete, repair,
23 replace, or maintain aircraft and who (i) hold an Air
24 Agency Certificate and are empowered to operate an
25 approved repair station by the Federal Aviation
26 Administration, (ii) have a Class IV Rating, and (iii)

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1 conduct operations in accordance with Part 145 of the
2 Federal Aviation Regulations; and (B) persons who engage
3 in the modification, replacement, repair, and maintenance
4 of aircraft engines or power plants without regard to
5 whether or not those persons meet the qualifications of
6 item (A).
7 The changes made to this paragraph (40) by Public Act
8 98-534 are declarative of existing law. It is the intent
9 of the General Assembly that the exemption under this
10 paragraph (40) applies continuously from January 1, 2010
11 through December 31, 2024; however, no claim for credit or
12 refund is allowed for taxes paid as a result of the
13 disallowance of this exemption on or after January 1, 2015
14 and prior to February 5, 2020 (the effective date of
15 Public Act 101-629).
16 (41) Tangible personal property sold to a
17 public-facilities corporation, as described in Section
18 11-65-10 of the Illinois Municipal Code, for purposes of
19 constructing or furnishing a municipal convention hall,
20 but only if the legal title to the municipal convention
21 hall is transferred to the municipality without any
22 further consideration by or on behalf of the municipality
23 at the time of the completion of the municipal convention
24 hall or upon the retirement or redemption of any bonds or
25 other debt instruments issued by the public-facilities
26 corporation in connection with the development of the

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1 municipal convention hall. This exemption includes
2 existing public-facilities corporations as provided in
3 Section 11-65-25 of the Illinois Municipal Code. This
4 paragraph is exempt from the provisions of Section 2-70.
5 (42) Beginning January 1, 2017 and through December
6 31, 2026, menstrual pads, tampons, and menstrual cups.
7 (43) Merchandise that is subject to the Rental
8 Purchase Agreement Occupation and Use Tax. The purchaser
9 must certify that the item is purchased to be rented
10 subject to a rental-purchase rental purchase agreement, as
11 defined in the Rental-Purchase Rental Purchase Agreement
12 Act, and provide proof of registration under the Rental
13 Purchase Agreement Occupation and Use Tax Act. This
14 paragraph is exempt from the provisions of Section 2-70.
15 (44) Qualified tangible personal property used in the
16 construction or operation of a data center that has been
17 granted a certificate of exemption by the Department of
18 Commerce and Economic Opportunity, whether that tangible
19 personal property is purchased by the owner, operator, or
20 tenant of the data center or by a contractor or
21 subcontractor of the owner, operator, or tenant. Data
22 centers that would have qualified for a certificate of
23 exemption prior to January 1, 2020 had Public Act 101-31
24 been in effect, may apply for and obtain an exemption for
25 subsequent purchases of computer equipment or enabling
26 software purchased or leased to upgrade, supplement, or

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1 replace computer equipment or enabling software purchased
2 or leased in the original investment that would have
3 qualified.
4 The Department of Commerce and Economic Opportunity
5 shall grant a certificate of exemption under this item
6 (44) to qualified data centers as defined by Section
7 605-1025 of the Department of Commerce and Economic
8 Opportunity Law of the Civil Administrative Code of
9 Illinois.
10 For the purposes of this item (44):
11 "Data center" means a building or a series of
12 buildings rehabilitated or constructed to house
13 working servers in one physical location or multiple
14 sites within the State of Illinois.
15 "Qualified tangible personal property" means:
16 electrical systems and equipment; climate control and
17 chilling equipment and systems; mechanical systems and
18 equipment; monitoring and secure systems; emergency
19 generators; hardware; computers; servers; data storage
20 devices; network connectivity equipment; racks;
21 cabinets; telecommunications cabling infrastructure;
22 raised floor systems; peripheral components or
23 systems; software; mechanical, electrical, or plumbing
24 systems; battery systems; cooling systems and towers;
25 temperature control systems; other cabling; and other
26 data center infrastructure equipment and systems

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1 necessary to operate qualified tangible personal
2 property, including fixtures; and component parts of
3 any of the foregoing, including installation,
4 maintenance, repair, refurbishment, and replacement of
5 qualified tangible personal property to generate,
6 transform, transmit, distribute, or manage electricity
7 necessary to operate qualified tangible personal
8 property; and all other tangible personal property
9 that is essential to the operations of a computer data
10 center. The term "qualified tangible personal
11 property" also includes building materials physically
12 incorporated into the qualifying data center. To
13 document the exemption allowed under this Section, the
14 retailer must obtain from the purchaser a copy of the
15 certificate of eligibility issued by the Department of
16 Commerce and Economic Opportunity.
17 This item (44) is exempt from the provisions of
18 Section 2-70.
19 (45) Beginning January 1, 2020 and through December
20 31, 2020, sales of tangible personal property made by a
21 marketplace seller over a marketplace for which tax is due
22 under this Act but for which use tax has been collected and
23 remitted to the Department by a marketplace facilitator
24 under Section 2d of the Use Tax Act are exempt from tax
25 under this Act. A marketplace seller claiming this
26 exemption shall maintain books and records demonstrating

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1 that the use tax on such sales has been collected and
2 remitted by a marketplace facilitator. Marketplace sellers
3 that have properly remitted tax under this Act on such
4 sales may file a claim for credit as provided in Section 6
5 of this Act. No claim is allowed, however, for such taxes
6 for which a credit or refund has been issued to the
7 marketplace facilitator under the Use Tax Act, or for
8 which the marketplace facilitator has filed a claim for
9 credit or refund under the Use Tax Act.
10 (46) Beginning July 1, 2022, breast pumps, breast pump
11 collection and storage supplies, and breast pump kits.
12 This item (46) is exempt from the provisions of Section
13 2-70. As used in this item (46):
14 "Breast pump" means an electrically controlled or
15 manually controlled pump device designed or marketed to be
16 used to express milk from a human breast during lactation,
17 including the pump device and any battery, AC adapter, or
18 other power supply unit that is used to power the pump
19 device and is packaged and sold with the pump device at the
20 time of sale.
21 "Breast pump collection and storage supplies" means
22 items of tangible personal property designed or marketed
23 to be used in conjunction with a breast pump to collect
24 milk expressed from a human breast and to store collected
25 milk until it is ready for consumption.
26 "Breast pump collection and storage supplies"

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1 includes, but is not limited to: breast shields and breast
2 shield connectors; breast pump tubes and tubing adapters;
3 breast pump valves and membranes; backflow protectors and
4 backflow protector adaptors; bottles and bottle caps
5 specific to the operation of the breast pump; and breast
6 milk storage bags.
7 "Breast pump collection and storage supplies" does not
8 include: (1) bottles and bottle caps not specific to the
9 operation of the breast pump; (2) breast pump travel bags
10 and other similar carrying accessories, including ice
11 packs, labels, and other similar products; (3) breast pump
12 cleaning supplies; (4) nursing bras, bra pads, breast
13 shells, and other similar products; and (5) creams,
14 ointments, and other similar products that relieve
15 breastfeeding-related symptoms or conditions of the
16 breasts or nipples, unless sold as part of a breast pump
17 kit that is pre-packaged by the breast pump manufacturer
18 or distributor.
19 "Breast pump kit" means a kit that: (1) contains no
20 more than a breast pump, breast pump collection and
21 storage supplies, a rechargeable battery for operating the
22 breast pump, a breastmilk cooler, bottle stands, ice
23 packs, and a breast pump carrying case; and (2) is
24 pre-packaged as a breast pump kit by the breast pump
25 manufacturer or distributor.
26 (47) Tangible personal property sold by or on behalf

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1 of the State Treasurer pursuant to the Revised Uniform
2 Unclaimed Property Act. This item (47) is exempt from the
3 provisions of Section 2-70.
4 (48) Beginning on January 1, 2024, tangible personal
5 property purchased by an active duty member of the armed
6 forces of the United States who presents valid military
7 identification and purchases the property using a form of
8 payment where the federal government is the payor. The
9 member of the armed forces must complete, at the point of
10 sale, a form prescribed by the Department of Revenue
11 documenting that the transaction is eligible for the
12 exemption under this paragraph. Retailers must keep the
13 form as documentation of the exemption in their records
14 for a period of not less than 6 years. "Armed forces of the
15 United States" means the United States Army, Navy, Air
16 Force, Marine Corps, or Coast Guard. This paragraph is
17 exempt from the provisions of Section 2-70.
18 (49) Beginning on July 1, 2024, food for human
19 consumption that is to be consumed off the premises where
20 it is sold (other than alcoholic beverages, food
21 consisting of or infused with adult use cannabis, soft
22 drinks, and food that has been prepared for immediate
23 consumption). This item (49) is exempt from the provisions
24 of Section 2-70.
25(Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21;
26102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700,

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1Article 75, Section 75-20, eff. 4-19-22; 102-813, eff.
25-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section
35-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff.
46-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; revised
512-12-23.)
6 (35 ILCS 120/2-10)
7 Sec. 2-10. Rate of tax. Unless otherwise provided in this
8Section, the tax imposed by this Act is at the rate of 6.25% of
9gross receipts from sales of tangible personal property made
10in the course of business.
11 Beginning on July 1, 2000 and through December 31, 2000,
12with respect to motor fuel, as defined in Section 1.1 of the
13Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
14the Use Tax Act, the tax is imposed at the rate of 1.25%.
15 Beginning on August 6, 2010 through August 15, 2010, and
16beginning again on August 5, 2022 through August 14, 2022,
17with respect to sales tax holiday items as defined in Section
182-8 of this Act, the tax is imposed at the rate of 1.25%.
19 Within 14 days after July 1, 2000 (the effective date of
20Public Act 91-872), each retailer of motor fuel and gasohol
21shall cause the following notice to be posted in a prominently
22visible place on each retail dispensing device that is used to
23dispense motor fuel or gasohol in the State of Illinois: "As of
24July 1, 2000, the State of Illinois has eliminated the State's
25share of sales tax on motor fuel and gasohol through December

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131, 2000. The price on this pump should reflect the
2elimination of the tax." The notice shall be printed in bold
3print on a sign that is no smaller than 4 inches by 8 inches.
4The sign shall be clearly visible to customers. Any retailer
5who fails to post or maintain a required sign through December
631, 2000 is guilty of a petty offense for which the fine shall
7be $500 per day per each retail premises where a violation
8occurs.
9 With respect to gasohol, as defined in the Use Tax Act, the
10tax imposed by this Act applies to (i) 70% of the proceeds of
11sales made on or after January 1, 1990, and before July 1,
122003, (ii) 80% of the proceeds of sales made on or after July
131, 2003 and on or before July 1, 2017, (iii) 100% of the
14proceeds of sales made after July 1, 2017 and prior to January
151, 2024, (iv) 90% of the proceeds of sales made on or after
16January 1, 2024 and on or before December 31, 2028, and (v)
17100% of the proceeds of sales made after December 31, 2028. If,
18at any time, however, the tax under this Act on sales of
19gasohol, as defined in the Use Tax Act, is imposed at the rate
20of 1.25%, then the tax imposed by this Act applies to 100% of
21the proceeds of sales of gasohol made during that time.
22 With respect to mid-range ethanol blends, as defined in
23Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
24applies to (i) 80% of the proceeds of sales made on or after
25January 1, 2024 and on or before December 31, 2028 and (ii)
26100% of the proceeds of sales made after December 31, 2028. If,

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1at any time, however, the tax under this Act on sales of
2mid-range ethanol blends is imposed at the rate of 1.25%, then
3the tax imposed by this Act applies to 100% of the proceeds of
4sales of mid-range ethanol blends made during that time.
5 With respect to majority blended ethanol fuel, as defined
6in the Use Tax Act, the tax imposed by this Act does not apply
7to the proceeds of sales made on or after July 1, 2003 and on
8or before December 31, 2028 but applies to 100% of the proceeds
9of sales made thereafter.
10 With respect to biodiesel blends, as defined in the Use
11Tax Act, with no less than 1% and no more than 10% biodiesel,
12the tax imposed by this Act applies to (i) 80% of the proceeds
13of sales made on or after July 1, 2003 and on or before
14December 31, 2018 and (ii) 100% of the proceeds of sales made
15after December 31, 2018 and before January 1, 2024. On and
16after January 1, 2024 and on or before December 31, 2030, the
17taxation of biodiesel, renewable diesel, and biodiesel blends
18shall be as provided in Section 3-5.1 of the Use Tax Act. If,
19at any time, however, the tax under this Act on sales of
20biodiesel blends, as defined in the Use Tax Act, with no less
21than 1% and no more than 10% biodiesel is imposed at the rate
22of 1.25%, then the tax imposed by this Act applies to 100% of
23the proceeds of sales of biodiesel blends with no less than 1%
24and no more than 10% biodiesel made during that time.
25 With respect to biodiesel, as defined in the Use Tax Act,
26and biodiesel blends, as defined in the Use Tax Act, with more

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1than 10% but no more than 99% biodiesel, the tax imposed by
2this Act does not apply to the proceeds of sales made on or
3after July 1, 2003 and on or before December 31, 2023. On and
4after January 1, 2024 and on or before December 31, 2030, the
5taxation of biodiesel, renewable diesel, and biodiesel blends
6shall be as provided in Section 3-5.1 of the Use Tax Act.
7 Until July 1, 2022 and from beginning again on July 1, 2023
8through June 30, 2024, with respect to food for human
9consumption that is to be consumed off the premises where it is
10sold (other than alcoholic beverages, food consisting of or
11infused with adult use cannabis, soft drinks, and food that
12has been prepared for immediate consumption), the tax is
13imposed at the rate of 1%. From Beginning July 1, 2022 through
14and until July 1, 2023, and on and after July 1, 2024, with
15respect to food for human consumption that is to be consumed
16off the premises where it is sold (other than alcoholic
17beverages, food consisting of or infused with adult use
18cannabis, soft drinks, and food that has been prepared for
19immediate consumption) is exempt from the tax imposed by this
20Act , the tax is imposed at the rate of 0%.
21 With respect to prescription and nonprescription
22medicines, drugs, medical appliances, products classified as
23Class III medical devices by the United States Food and Drug
24Administration that are used for cancer treatment pursuant to
25a prescription, as well as any accessories and components
26related to those devices, modifications to a motor vehicle for

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1the purpose of rendering it usable by a person with a
2disability, and insulin, blood sugar testing materials,
3syringes, and needles used by human diabetics, the tax is
4imposed at the rate of 1%. For the purposes of this Section,
5until September 1, 2009: the term "soft drinks" means any
6complete, finished, ready-to-use, non-alcoholic drink, whether
7carbonated or not, including, but not limited to, soda water,
8cola, fruit juice, vegetable juice, carbonated water, and all
9other preparations commonly known as soft drinks of whatever
10kind or description that are contained in any closed or sealed
11bottle, can, carton, or container, regardless of size; but
12"soft drinks" does not include coffee, tea, non-carbonated
13water, infant formula, milk or milk products as defined in the
14Grade A Pasteurized Milk and Milk Products Act, or drinks
15containing 50% or more natural fruit or vegetable juice.
16 Notwithstanding any other provisions of this Act,
17beginning September 1, 2009, "soft drinks" means non-alcoholic
18beverages that contain natural or artificial sweeteners. "Soft
19drinks" does not include beverages that contain milk or milk
20products, soy, rice or similar milk substitutes, or greater
21than 50% of vegetable or fruit juice by volume.
22 Until August 1, 2009, and notwithstanding any other
23provisions of this Act, "food for human consumption that is to
24be consumed off the premises where it is sold" includes all
25food sold through a vending machine, except soft drinks and
26food products that are dispensed hot from a vending machine,

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1regardless of the location of the vending machine. Beginning
2August 1, 2009, and notwithstanding any other provisions of
3this Act, "food for human consumption that is to be consumed
4off the premises where it is sold" includes all food sold
5through a vending machine, except soft drinks, candy, and food
6products that are dispensed hot from a vending machine,
7regardless of the location of the vending machine.
8 Notwithstanding any other provisions of this Act,
9beginning September 1, 2009, "food for human consumption that
10is to be consumed off the premises where it is sold" does not
11include candy. For purposes of this Section, "candy" means a
12preparation of sugar, honey, or other natural or artificial
13sweeteners in combination with chocolate, fruits, nuts or
14other ingredients or flavorings in the form of bars, drops, or
15pieces. "Candy" does not include any preparation that contains
16flour or requires refrigeration.
17 Notwithstanding any other provisions of this Act,
18beginning September 1, 2009, "nonprescription medicines and
19drugs" does not include grooming and hygiene products. For
20purposes of this Section, "grooming and hygiene products"
21includes, but is not limited to, soaps and cleaning solutions,
22shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
23lotions and screens, unless those products are available by
24prescription only, regardless of whether the products meet the
25definition of "over-the-counter-drugs". For the purposes of
26this paragraph, "over-the-counter-drug" means a drug for human

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1use that contains a label that identifies the product as a drug
2as required by 21 CFR 201.66. The "over-the-counter-drug"
3label includes:
4 (A) a "Drug Facts" panel; or
5 (B) a statement of the "active ingredient(s)" with a
6 list of those ingredients contained in the compound,
7 substance or preparation.
8 Beginning on January 1, 2014 (the effective date of Public
9Act 98-122), "prescription and nonprescription medicines and
10drugs" includes medical cannabis purchased from a registered
11dispensing organization under the Compassionate Use of Medical
12Cannabis Program Act.
13 As used in this Section, "adult use cannabis" means
14cannabis subject to tax under the Cannabis Cultivation
15Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
16and does not include cannabis subject to tax under the
17Compassionate Use of Medical Cannabis Program Act.
18(Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20,
19Section 20-20, eff. 4-19-22; 102-700, Article 60, Section
2060-30, eff. 4-19-22; 102-700, Article 65, Section 65-10, eff.
214-19-22; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23.)
22 (35 ILCS 120/3) (from Ch. 120, par. 442)
23 Sec. 3. Except as provided in this Section, on or before
24the twentieth day of each calendar month, every person engaged
25in the business of selling tangible personal property at

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1retail in this State during the preceding calendar month shall
2file a return with the Department, stating:
3 1. The name of the seller;
4 2. His residence address and the address of his
5 principal place of business and the address of the
6 principal place of business (if that is a different
7 address) from which he engages in the business of selling
8 tangible personal property at retail in this State;
9 3. Total amount of receipts received by him during the
10 preceding calendar month or quarter, as the case may be,
11 from sales of tangible personal property, and from
12 services furnished, by him during such preceding calendar
13 month or quarter;
14 4. Total amount received by him during the preceding
15 calendar month or quarter on charge and time sales of
16 tangible personal property, and from services furnished,
17 by him prior to the month or quarter for which the return
18 is filed;
19 5. Deductions allowed by law;
20 6. Gross receipts which were received by him during
21 the preceding calendar month or quarter and upon the basis
22 of which the tax is imposed, including gross receipts on
23 food for human consumption that is to be consumed off the
24 premises where it is sold (other than alcoholic beverages,
25 food consisting of or infused with adult use cannabis,
26 soft drinks, and food that has been prepared for immediate

HB4987- 207 -LRB103 34737 HLH 64585 b
1 consumption) which were received during the preceding
2 calendar month or quarter and upon which tax would have
3 been due but for the 0% rate imposed under Public Act
4 102-700;
5 7. The amount of credit provided in Section 2d of this
6 Act;
7 8. The amount of tax due, including the amount of tax
8 that would have been due on food for human consumption
9 that is to be consumed off the premises where it is sold
10 (other than alcoholic beverages, food consisting of or
11 infused with adult use cannabis, soft drinks, and food
12 that has been prepared for immediate consumption) but for
13 the 0% rate imposed under Public Act 102-700;
14 9. The signature of the taxpayer; and
15 10. Such other reasonable information as the
16 Department may require.
17 On and after January 1, 2018, except for returns required
18to be filed prior to January 1, 2023 for motor vehicles,
19watercraft, aircraft, and trailers that are required to be
20registered with an agency of this State, with respect to
21retailers whose annual gross receipts average $20,000 or more,
22all returns required to be filed pursuant to this Act shall be
23filed electronically. On and after January 1, 2023, with
24respect to retailers whose annual gross receipts average
25$20,000 or more, all returns required to be filed pursuant to
26this Act, including, but not limited to, returns for motor

HB4987- 208 -LRB103 34737 HLH 64585 b
1vehicles, watercraft, aircraft, and trailers that are required
2to be registered with an agency of this State, shall be filed
3electronically. Retailers who demonstrate that they do not
4have access to the Internet or demonstrate hardship in filing
5electronically may petition the Department to waive the
6electronic filing requirement.
7 If a taxpayer fails to sign a return within 30 days after
8the proper notice and demand for signature by the Department,
9the return shall be considered valid and any amount shown to be
10due on the return shall be deemed assessed.
11 Each return shall be accompanied by the statement of
12prepaid tax issued pursuant to Section 2e for which credit is
13claimed.
14 Prior to October 1, 2003, and on and after September 1,
152004, a retailer may accept a Manufacturer's Purchase Credit
16certification from a purchaser in satisfaction of Use Tax as
17provided in Section 3-85 of the Use Tax Act if the purchaser
18provides the appropriate documentation as required by Section
193-85 of the Use Tax Act. A Manufacturer's Purchase Credit
20certification, accepted by a retailer prior to October 1, 2003
21and on and after September 1, 2004 as provided in Section 3-85
22of the Use Tax Act, may be used by that retailer to satisfy
23Retailers' Occupation Tax liability in the amount claimed in
24the certification, not to exceed 6.25% of the receipts subject
25to tax from a qualifying purchase. A Manufacturer's Purchase
26Credit reported on any original or amended return filed under

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1this Act after October 20, 2003 for reporting periods prior to
2September 1, 2004 shall be disallowed. Manufacturer's Purchase
3Credit reported on annual returns due on or after January 1,
42005 will be disallowed for periods prior to September 1,
52004. No Manufacturer's Purchase Credit may be used after
6September 30, 2003 through August 31, 2004 to satisfy any tax
7liability imposed under this Act, including any audit
8liability.
9 Beginning on July 1, 2023 and through December 31, 2032, a
10retailer may accept a Sustainable Aviation Fuel Purchase
11Credit certification from an air common carrier-purchaser in
12satisfaction of Use Tax on aviation fuel as provided in
13Section 3-87 of the Use Tax Act if the purchaser provides the
14appropriate documentation as required by Section 3-87 of the
15Use Tax Act. A Sustainable Aviation Fuel Purchase Credit
16certification accepted by a retailer in accordance with this
17paragraph may be used by that retailer to satisfy Retailers'
18Occupation Tax liability (but not in satisfaction of penalty
19or interest) in the amount claimed in the certification, not
20to exceed 6.25% of the receipts subject to tax from a sale of
21aviation fuel. In addition, for a sale of aviation fuel to
22qualify to earn the Sustainable Aviation Fuel Purchase Credit,
23retailers must retain in their books and records a
24certification from the producer of the aviation fuel that the
25aviation fuel sold by the retailer and for which a sustainable
26aviation fuel purchase credit was earned meets the definition

HB4987- 210 -LRB103 34737 HLH 64585 b
1of sustainable aviation fuel under Section 3-87 of the Use Tax
2Act. The documentation must include detail sufficient for the
3Department to determine the number of gallons of sustainable
4aviation fuel sold.
5 The Department may require returns to be filed on a
6quarterly basis. If so required, a return for each calendar
7quarter shall be filed on or before the twentieth day of the
8calendar month following the end of such calendar quarter. The
9taxpayer shall also file a return with the Department for each
10of the first 2 two months of each calendar quarter, on or
11before the twentieth day of the following calendar month,
12stating:
13 1. The name of the seller;
14 2. The address of the principal place of business from
15 which he engages in the business of selling tangible
16 personal property at retail in this State;
17 3. The total amount of taxable receipts received by
18 him during the preceding calendar month from sales of
19 tangible personal property by him during such preceding
20 calendar month, including receipts from charge and time
21 sales, but less all deductions allowed by law;
22 4. The amount of credit provided in Section 2d of this
23 Act;
24 5. The amount of tax due; and
25 6. Such other reasonable information as the Department
26 may require.

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1 Every person engaged in the business of selling aviation
2fuel at retail in this State during the preceding calendar
3month shall, instead of reporting and paying tax as otherwise
4required by this Section, report and pay such tax on a separate
5aviation fuel tax return. The requirements related to the
6return shall be as otherwise provided in this Section.
7Notwithstanding any other provisions of this Act to the
8contrary, retailers selling aviation fuel shall file all
9aviation fuel tax returns and shall make all aviation fuel tax
10payments by electronic means in the manner and form required
11by the Department. For purposes of this Section, "aviation
12fuel" means jet fuel and aviation gasoline.
13 Beginning on October 1, 2003, any person who is not a
14licensed distributor, importing distributor, or manufacturer,
15as defined in the Liquor Control Act of 1934, but is engaged in
16the business of selling, at retail, alcoholic liquor shall
17file a statement with the Department of Revenue, in a format
18and at a time prescribed by the Department, showing the total
19amount paid for alcoholic liquor purchased during the
20preceding month and such other information as is reasonably
21required by the Department. The Department may adopt rules to
22require that this statement be filed in an electronic or
23telephonic format. Such rules may provide for exceptions from
24the filing requirements of this paragraph. For the purposes of
25this paragraph, the term "alcoholic liquor" shall have the
26meaning prescribed in the Liquor Control Act of 1934.

HB4987- 212 -LRB103 34737 HLH 64585 b
1 Beginning on October 1, 2003, every distributor, importing
2distributor, and manufacturer of alcoholic liquor as defined
3in the Liquor Control Act of 1934, shall file a statement with
4the Department of Revenue, no later than the 10th day of the
5month for the preceding month during which transactions
6occurred, by electronic means, showing the total amount of
7gross receipts from the sale of alcoholic liquor sold or
8distributed during the preceding month to purchasers;
9identifying the purchaser to whom it was sold or distributed;
10the purchaser's tax registration number; and such other
11information reasonably required by the Department. A
12distributor, importing distributor, or manufacturer of
13alcoholic liquor must personally deliver, mail, or provide by
14electronic means to each retailer listed on the monthly
15statement a report containing a cumulative total of that
16distributor's, importing distributor's, or manufacturer's
17total sales of alcoholic liquor to that retailer no later than
18the 10th day of the month for the preceding month during which
19the transaction occurred. The distributor, importing
20distributor, or manufacturer shall notify the retailer as to
21the method by which the distributor, importing distributor, or
22manufacturer will provide the sales information. If the
23retailer is unable to receive the sales information by
24electronic means, the distributor, importing distributor, or
25manufacturer shall furnish the sales information by personal
26delivery or by mail. For purposes of this paragraph, the term

HB4987- 213 -LRB103 34737 HLH 64585 b
1"electronic means" includes, but is not limited to, the use of
2a secure Internet website, e-mail, or facsimile.
3 If a total amount of less than $1 is payable, refundable or
4creditable, such amount shall be disregarded if it is less
5than 50 cents and shall be increased to $1 if it is 50 cents or
6more.
7 Notwithstanding any other provision of this Act to the
8contrary, retailers subject to tax on cannabis shall file all
9cannabis tax returns and shall make all cannabis tax payments
10by electronic means in the manner and form required by the
11Department.
12 Beginning October 1, 1993, a taxpayer who has an average
13monthly tax liability of $150,000 or more shall make all
14payments required by rules of the Department by electronic
15funds transfer. Beginning October 1, 1994, a taxpayer who has
16an average monthly tax liability of $100,000 or more shall
17make all payments required by rules of the Department by
18electronic funds transfer. Beginning October 1, 1995, a
19taxpayer who has an average monthly tax liability of $50,000
20or more shall make all payments required by rules of the
21Department by electronic funds transfer. Beginning October 1,
222000, a taxpayer who has an annual tax liability of $200,000 or
23more shall make all payments required by rules of the
24Department by electronic funds transfer. The term "annual tax
25liability" shall be the sum of the taxpayer's liabilities
26under this Act, and under all other State and local occupation

HB4987- 214 -LRB103 34737 HLH 64585 b
1and use tax laws administered by the Department, for the
2immediately preceding calendar year. The term "average monthly
3tax liability" shall be the sum of the taxpayer's liabilities
4under this Act, and under all other State and local occupation
5and use tax laws administered by the Department, for the
6immediately preceding calendar year divided by 12. Beginning
7on October 1, 2002, a taxpayer who has a tax liability in the
8amount set forth in subsection (b) of Section 2505-210 of the
9Department of Revenue Law shall make all payments required by
10rules of the Department by electronic funds transfer.
11 Before August 1 of each year beginning in 1993, the
12Department shall notify all taxpayers required to make
13payments by electronic funds transfer. All taxpayers required
14to make payments by electronic funds transfer shall make those
15payments for a minimum of one year beginning on October 1.
16 Any taxpayer not required to make payments by electronic
17funds transfer may make payments by electronic funds transfer
18with the permission of the Department.
19 All taxpayers required to make payment by electronic funds
20transfer and any taxpayers authorized to voluntarily make
21payments by electronic funds transfer shall make those
22payments in the manner authorized by the Department.
23 The Department shall adopt such rules as are necessary to
24effectuate a program of electronic funds transfer and the
25requirements of this Section.
26 Any amount which is required to be shown or reported on any

HB4987- 215 -LRB103 34737 HLH 64585 b
1return or other document under this Act shall, if such amount
2is not a whole-dollar amount, be increased to the nearest
3whole-dollar amount in any case where the fractional part of a
4dollar is 50 cents or more, and decreased to the nearest
5whole-dollar amount where the fractional part of a dollar is
6less than 50 cents.
7 If the retailer is otherwise required to file a monthly
8return and if the retailer's average monthly tax liability to
9the Department does not exceed $200, the Department may
10authorize his returns to be filed on a quarter annual basis,
11with the return for January, February, and March of a given
12year being due by April 20 of such year; with the return for
13April, May, and June of a given year being due by July 20 of
14such year; with the return for July, August, and September of a
15given year being due by October 20 of such year, and with the
16return for October, November, and December of a given year
17being due by January 20 of the following year.
18 If the retailer is otherwise required to file a monthly or
19quarterly return and if the retailer's average monthly tax
20liability with the Department does not exceed $50, the
21Department may authorize his returns to be filed on an annual
22basis, with the return for a given year being due by January 20
23of the following year.
24 Such quarter annual and annual returns, as to form and
25substance, shall be subject to the same requirements as
26monthly returns.

HB4987- 216 -LRB103 34737 HLH 64585 b
1 Notwithstanding any other provision in this Act concerning
2the time within which a retailer may file his return, in the
3case of any retailer who ceases to engage in a kind of business
4which makes him responsible for filing returns under this Act,
5such retailer shall file a final return under this Act with the
6Department not more than one month after discontinuing such
7business.
8 Where the same person has more than one business
9registered with the Department under separate registrations
10under this Act, such person may not file each return that is
11due as a single return covering all such registered
12businesses, but shall file separate returns for each such
13registered business.
14 In addition, with respect to motor vehicles, watercraft,
15aircraft, and trailers that are required to be registered with
16an agency of this State, except as otherwise provided in this
17Section, every retailer selling this kind of tangible personal
18property shall file, with the Department, upon a form to be
19prescribed and supplied by the Department, a separate return
20for each such item of tangible personal property which the
21retailer sells, except that if, in the same transaction, (i) a
22retailer of aircraft, watercraft, motor vehicles, or trailers
23transfers more than one aircraft, watercraft, motor vehicle,
24or trailer to another aircraft, watercraft, motor vehicle
25retailer, or trailer retailer for the purpose of resale or
26(ii) a retailer of aircraft, watercraft, motor vehicles, or

HB4987- 217 -LRB103 34737 HLH 64585 b
1trailers transfers more than one aircraft, watercraft, motor
2vehicle, or trailer to a purchaser for use as a qualifying
3rolling stock as provided in Section 2-5 of this Act, then that
4seller may report the transfer of all aircraft, watercraft,
5motor vehicles, or trailers involved in that transaction to
6the Department on the same uniform invoice-transaction
7reporting return form. For purposes of this Section,
8"watercraft" means a Class 2, Class 3, or Class 4 watercraft as
9defined in Section 3-2 of the Boat Registration and Safety
10Act, a personal watercraft, or any boat equipped with an
11inboard motor.
12 In addition, with respect to motor vehicles, watercraft,
13aircraft, and trailers that are required to be registered with
14an agency of this State, every person who is engaged in the
15business of leasing or renting such items and who, in
16connection with such business, sells any such item to a
17retailer for the purpose of resale is, notwithstanding any
18other provision of this Section to the contrary, authorized to
19meet the return-filing requirement of this Act by reporting
20the transfer of all the aircraft, watercraft, motor vehicles,
21or trailers transferred for resale during a month to the
22Department on the same uniform invoice-transaction reporting
23return form on or before the 20th of the month following the
24month in which the transfer takes place. Notwithstanding any
25other provision of this Act to the contrary, all returns filed
26under this paragraph must be filed by electronic means in the

HB4987- 218 -LRB103 34737 HLH 64585 b
1manner and form as required by the Department.
2 Any retailer who sells only motor vehicles, watercraft,
3aircraft, or trailers that are required to be registered with
4an agency of this State, so that all retailers' occupation tax
5liability is required to be reported, and is reported, on such
6transaction reporting returns and who is not otherwise
7required to file monthly or quarterly returns, need not file
8monthly or quarterly returns. However, those retailers shall
9be required to file returns on an annual basis.
10 The transaction reporting return, in the case of motor
11vehicles or trailers that are required to be registered with
12an agency of this State, shall be the same document as the
13Uniform Invoice referred to in Section 5-402 of the Illinois
14Vehicle Code and must show the name and address of the seller;
15the name and address of the purchaser; the amount of the
16selling price including the amount allowed by the retailer for
17traded-in property, if any; the amount allowed by the retailer
18for the traded-in tangible personal property, if any, to the
19extent to which Section 1 of this Act allows an exemption for
20the value of traded-in property; the balance payable after
21deducting such trade-in allowance from the total selling
22price; the amount of tax due from the retailer with respect to
23such transaction; the amount of tax collected from the
24purchaser by the retailer on such transaction (or satisfactory
25evidence that such tax is not due in that particular instance,
26if that is claimed to be the fact); the place and date of the

HB4987- 219 -LRB103 34737 HLH 64585 b
1sale; a sufficient identification of the property sold; such
2other information as is required in Section 5-402 of the
3Illinois Vehicle Code, and such other information as the
4Department may reasonably require.
5 The transaction reporting return in the case of watercraft
6or aircraft must show the name and address of the seller; the
7name and address of the purchaser; the amount of the selling
8price including the amount allowed by the retailer for
9traded-in property, if any; the amount allowed by the retailer
10for the traded-in tangible personal property, if any, to the
11extent to which Section 1 of this Act allows an exemption for
12the value of traded-in property; the balance payable after
13deducting such trade-in allowance from the total selling
14price; the amount of tax due from the retailer with respect to
15such transaction; the amount of tax collected from the
16purchaser by the retailer on such transaction (or satisfactory
17evidence that such tax is not due in that particular instance,
18if that is claimed to be the fact); the place and date of the
19sale, a sufficient identification of the property sold, and
20such other information as the Department may reasonably
21require.
22 Such transaction reporting return shall be filed not later
23than 20 days after the day of delivery of the item that is
24being sold, but may be filed by the retailer at any time sooner
25than that if he chooses to do so. The transaction reporting
26return and tax remittance or proof of exemption from the

HB4987- 220 -LRB103 34737 HLH 64585 b
1Illinois use tax may be transmitted to the Department by way of
2the State agency with which, or State officer with whom the
3tangible personal property must be titled or registered (if
4titling or registration is required) if the Department and
5such agency or State officer determine that this procedure
6will expedite the processing of applications for title or
7registration.
8 With each such transaction reporting return, the retailer
9shall remit the proper amount of tax due (or shall submit
10satisfactory evidence that the sale is not taxable if that is
11the case), to the Department or its agents, whereupon the
12Department shall issue, in the purchaser's name, a use tax
13receipt (or a certificate of exemption if the Department is
14satisfied that the particular sale is tax exempt) which such
15purchaser may submit to the agency with which, or State
16officer with whom, he must title or register the tangible
17personal property that is involved (if titling or registration
18is required) in support of such purchaser's application for an
19Illinois certificate or other evidence of title or
20registration to such tangible personal property.
21 No retailer's failure or refusal to remit tax under this
22Act precludes a user, who has paid the proper tax to the
23retailer, from obtaining his certificate of title or other
24evidence of title or registration (if titling or registration
25is required) upon satisfying the Department that such user has
26paid the proper tax (if tax is due) to the retailer. The

HB4987- 221 -LRB103 34737 HLH 64585 b
1Department shall adopt appropriate rules to carry out the
2mandate of this paragraph.
3 If the user who would otherwise pay tax to the retailer
4wants the transaction reporting return filed and the payment
5of the tax or proof of exemption made to the Department before
6the retailer is willing to take these actions and such user has
7not paid the tax to the retailer, such user may certify to the
8fact of such delay by the retailer and may (upon the Department
9being satisfied of the truth of such certification) transmit
10the information required by the transaction reporting return
11and the remittance for tax or proof of exemption directly to
12the Department and obtain his tax receipt or exemption
13determination, in which event the transaction reporting return
14and tax remittance (if a tax payment was required) shall be
15credited by the Department to the proper retailer's account
16with the Department, but without the 2.1% or 1.75% discount
17provided for in this Section being allowed. When the user pays
18the tax directly to the Department, he shall pay the tax in the
19same amount and in the same form in which it would be remitted
20if the tax had been remitted to the Department by the retailer.
21 Refunds made by the seller during the preceding return
22period to purchasers, on account of tangible personal property
23returned to the seller, shall be allowed as a deduction under
24subdivision 5 of his monthly or quarterly return, as the case
25may be, in case the seller had theretofore included the
26receipts from the sale of such tangible personal property in a

HB4987- 222 -LRB103 34737 HLH 64585 b
1return filed by him and had paid the tax imposed by this Act
2with respect to such receipts.
3 Where the seller is a corporation, the return filed on
4behalf of such corporation shall be signed by the president,
5vice-president, secretary, or treasurer or by the properly
6accredited agent of such corporation.
7 Where the seller is a limited liability company, the
8return filed on behalf of the limited liability company shall
9be signed by a manager, member, or properly accredited agent
10of the limited liability company.
11 Except as provided in this Section, the retailer filing
12the return under this Section shall, at the time of filing such
13return, pay to the Department the amount of tax imposed by this
14Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
15on and after January 1, 1990, or $5 per calendar year,
16whichever is greater, which is allowed to reimburse the
17retailer for the expenses incurred in keeping records,
18preparing and filing returns, remitting the tax and supplying
19data to the Department on request. On and after January 1,
202021, a certified service provider, as defined in the Leveling
21the Playing Field for Illinois Retail Act, filing the return
22under this Section on behalf of a remote retailer shall, at the
23time of such return, pay to the Department the amount of tax
24imposed by this Act less a discount of 1.75%. A remote retailer
25using a certified service provider to file a return on its
26behalf, as provided in the Leveling the Playing Field for

HB4987- 223 -LRB103 34737 HLH 64585 b
1Illinois Retail Act, is not eligible for the discount. When
2determining the discount allowed under this Section, retailers
3shall include the amount of tax that would have been due at the
41% rate but for the 0% rate imposed under Public Act 102-700.
5When determining the discount allowed under this Section,
6retailers shall include the amount of tax that would have been
7due at the 6.25% rate but for the 1.25% rate imposed on sales
8tax holiday items under Public Act 102-700. The discount under
9this Section is not allowed for the 1.25% portion of taxes paid
10on aviation fuel that is subject to the revenue use
11requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. Any
12prepayment made pursuant to Section 2d of this Act shall be
13included in the amount on which such 2.1% or 1.75% discount is
14computed. In the case of retailers who report and pay the tax
15on a transaction by transaction basis, as provided in this
16Section, such discount shall be taken with each such tax
17remittance instead of when such retailer files his periodic
18return. The discount allowed under this Section is allowed
19only for returns that are filed in the manner required by this
20Act. The Department may disallow the discount for retailers
21whose certificate of registration is revoked at the time the
22return is filed, but only if the Department's decision to
23revoke the certificate of registration has become final.
24 Before October 1, 2000, if the taxpayer's average monthly
25tax liability to the Department under this Act, the Use Tax
26Act, the Service Occupation Tax Act, and the Service Use Tax

HB4987- 224 -LRB103 34737 HLH 64585 b
1Act, excluding any liability for prepaid sales tax to be
2remitted in accordance with Section 2d of this Act, was
3$10,000 or more during the preceding 4 complete calendar
4quarters, he shall file a return with the Department each
5month by the 20th day of the month next following the month
6during which such tax liability is incurred and shall make
7payments to the Department on or before the 7th, 15th, 22nd and
8last day of the month during which such liability is incurred.
9On and after October 1, 2000, if the taxpayer's average
10monthly tax liability to the Department under this Act, the
11Use Tax Act, the Service Occupation Tax Act, and the Service
12Use Tax Act, excluding any liability for prepaid sales tax to
13be remitted in accordance with Section 2d of this Act, was
14$20,000 or more during the preceding 4 complete calendar
15quarters, he shall file a return with the Department each
16month by the 20th day of the month next following the month
17during which such tax liability is incurred and shall make
18payment to the Department on or before the 7th, 15th, 22nd and
19last day of the month during which such liability is incurred.
20If the month during which such tax liability is incurred began
21prior to January 1, 1985, each payment shall be in an amount
22equal to 1/4 of the taxpayer's actual liability for the month
23or an amount set by the Department not to exceed 1/4 of the
24average monthly liability of the taxpayer to the Department
25for the preceding 4 complete calendar quarters (excluding the
26month of highest liability and the month of lowest liability

HB4987- 225 -LRB103 34737 HLH 64585 b
1in such 4 quarter period). If the month during which such tax
2liability is incurred begins on or after January 1, 1985 and
3prior to January 1, 1987, each payment shall be in an amount
4equal to 22.5% of the taxpayer's actual liability for the
5month or 27.5% of the taxpayer's liability for the same
6calendar month of the preceding year. If the month during
7which such tax liability is incurred begins on or after
8January 1, 1987 and prior to January 1, 1988, each payment
9shall be in an amount equal to 22.5% of the taxpayer's actual
10liability for the month or 26.25% of the taxpayer's liability
11for the same calendar month of the preceding year. If the month
12during which such tax liability is incurred begins on or after
13January 1, 1988, and prior to January 1, 1989, or begins on or
14after January 1, 1996, each payment shall be in an amount equal
15to 22.5% of the taxpayer's actual liability for the month or
1625% of the taxpayer's liability for the same calendar month of
17the preceding year. If the month during which such tax
18liability is incurred begins on or after January 1, 1989, and
19prior to January 1, 1996, each payment shall be in an amount
20equal to 22.5% of the taxpayer's actual liability for the
21month or 25% of the taxpayer's liability for the same calendar
22month of the preceding year or 100% of the taxpayer's actual
23liability for the quarter monthly reporting period. The amount
24of such quarter monthly payments shall be credited against the
25final tax liability of the taxpayer's return for that month.
26Before October 1, 2000, once applicable, the requirement of

HB4987- 226 -LRB103 34737 HLH 64585 b
1the making of quarter monthly payments to the Department by
2taxpayers having an average monthly tax liability of $10,000
3or more as determined in the manner provided above shall
4continue until such taxpayer's average monthly liability to
5the Department during the preceding 4 complete calendar
6quarters (excluding the month of highest liability and the
7month of lowest liability) is less than $9,000, or until such
8taxpayer's average monthly liability to the Department as
9computed for each calendar quarter of the 4 preceding complete
10calendar quarter period is less than $10,000. However, if a
11taxpayer can show the Department that a substantial change in
12the taxpayer's business has occurred which causes the taxpayer
13to anticipate that his average monthly tax liability for the
14reasonably foreseeable future will fall below the $10,000
15threshold stated above, then such taxpayer may petition the
16Department for a change in such taxpayer's reporting status.
17On and after October 1, 2000, once applicable, the requirement
18of the making of quarter monthly payments to the Department by
19taxpayers having an average monthly tax liability of $20,000
20or more as determined in the manner provided above shall
21continue until such taxpayer's average monthly liability to
22the Department during the preceding 4 complete calendar
23quarters (excluding the month of highest liability and the
24month of lowest liability) is less than $19,000 or until such
25taxpayer's average monthly liability to the Department as
26computed for each calendar quarter of the 4 preceding complete

HB4987- 227 -LRB103 34737 HLH 64585 b
1calendar quarter period is less than $20,000. However, if a
2taxpayer can show the Department that a substantial change in
3the taxpayer's business has occurred which causes the taxpayer
4to anticipate that his average monthly tax liability for the
5reasonably foreseeable future will fall below the $20,000
6threshold stated above, then such taxpayer may petition the
7Department for a change in such taxpayer's reporting status.
8The Department shall change such taxpayer's reporting status
9unless it finds that such change is seasonal in nature and not
10likely to be long term. Quarter monthly payment status shall
11be determined under this paragraph as if the rate reduction to
120% in Public Act 102-700 on food for human consumption that is
13to be consumed off the premises where it is sold (other than
14alcoholic beverages, food consisting of or infused with adult
15use cannabis, soft drinks, and food that has been prepared for
16immediate consumption) had not occurred. For quarter monthly
17payments due under this paragraph on or after July 1, 2023 and
18through June 30, 2024, "25% of the taxpayer's liability for
19the same calendar month of the preceding year" shall be
20determined as if the rate reduction to 0% in Public Act 102-700
21had not occurred. Quarter monthly payment status shall be
22determined under this paragraph as if the rate reduction to
231.25% in Public Act 102-700 on sales tax holiday items had not
24occurred. For quarter monthly payments due on or after July 1,
252023 and through June 30, 2024, "25% of the taxpayer's
26liability for the same calendar month of the preceding year"

HB4987- 228 -LRB103 34737 HLH 64585 b
1shall be determined as if the rate reduction to 1.25% in Public
2Act 102-700 on sales tax holiday items had not occurred. If any
3such quarter monthly payment is not paid at the time or in the
4amount required by this Section, then the taxpayer shall be
5liable for penalties and interest on the difference between
6the minimum amount due as a payment and the amount of such
7quarter monthly payment actually and timely paid, except
8insofar as the taxpayer has previously made payments for that
9month to the Department in excess of the minimum payments
10previously due as provided in this Section. The Department
11shall make reasonable rules and regulations to govern the
12quarter monthly payment amount and quarter monthly payment
13dates for taxpayers who file on other than a calendar monthly
14basis.
15 The provisions of this paragraph apply before October 1,
162001. Without regard to whether a taxpayer is required to make
17quarter monthly payments as specified above, any taxpayer who
18is required by Section 2d of this Act to collect and remit
19prepaid taxes and has collected prepaid taxes which average in
20excess of $25,000 per month during the preceding 2 complete
21calendar quarters, shall file a return with the Department as
22required by Section 2f and shall make payments to the
23Department on or before the 7th, 15th, 22nd and last day of the
24month during which such liability is incurred. If the month
25during which such tax liability is incurred began prior to
26September 1, 1985 (the effective date of Public Act 84-221),

HB4987- 229 -LRB103 34737 HLH 64585 b
1each payment shall be in an amount not less than 22.5% of the
2taxpayer's actual liability under Section 2d. If the month
3during which such tax liability is incurred begins on or after
4January 1, 1986, each payment shall be in an amount equal to
522.5% of the taxpayer's actual liability for the month or
627.5% of the taxpayer's liability for the same calendar month
7of the preceding calendar year. If the month during which such
8tax liability is incurred begins on or after January 1, 1987,
9each payment shall be in an amount equal to 22.5% of the
10taxpayer's actual liability for the month or 26.25% of the
11taxpayer's liability for the same calendar month of the
12preceding year. The amount of such quarter monthly payments
13shall be credited against the final tax liability of the
14taxpayer's return for that month filed under this Section or
15Section 2f, as the case may be. Once applicable, the
16requirement of the making of quarter monthly payments to the
17Department pursuant to this paragraph shall continue until
18such taxpayer's average monthly prepaid tax collections during
19the preceding 2 complete calendar quarters is $25,000 or less.
20If any such quarter monthly payment is not paid at the time or
21in the amount required, the taxpayer shall be liable for
22penalties and interest on such difference, except insofar as
23the taxpayer has previously made payments for that month in
24excess of the minimum payments previously due.
25 The provisions of this paragraph apply on and after
26October 1, 2001. Without regard to whether a taxpayer is

HB4987- 230 -LRB103 34737 HLH 64585 b
1required to make quarter monthly payments as specified above,
2any taxpayer who is required by Section 2d of this Act to
3collect and remit prepaid taxes and has collected prepaid
4taxes that average in excess of $20,000 per month during the
5preceding 4 complete calendar quarters shall file a return
6with the Department as required by Section 2f and shall make
7payments to the Department on or before the 7th, 15th, 22nd,
8and last day of the month during which the liability is
9incurred. Each payment shall be in an amount equal to 22.5% of
10the taxpayer's actual liability for the month or 25% of the
11taxpayer's liability for the same calendar month of the
12preceding year. The amount of the quarter monthly payments
13shall be credited against the final tax liability of the
14taxpayer's return for that month filed under this Section or
15Section 2f, as the case may be. Once applicable, the
16requirement of the making of quarter monthly payments to the
17Department pursuant to this paragraph shall continue until the
18taxpayer's average monthly prepaid tax collections during the
19preceding 4 complete calendar quarters (excluding the month of
20highest liability and the month of lowest liability) is less
21than $19,000 or until such taxpayer's average monthly
22liability to the Department as computed for each calendar
23quarter of the 4 preceding complete calendar quarters is less
24than $20,000. If any such quarter monthly payment is not paid
25at the time or in the amount required, the taxpayer shall be
26liable for penalties and interest on such difference, except

HB4987- 231 -LRB103 34737 HLH 64585 b
1insofar as the taxpayer has previously made payments for that
2month in excess of the minimum payments previously due.
3 If any payment provided for in this Section exceeds the
4taxpayer's liabilities under this Act, the Use Tax Act, the
5Service Occupation Tax Act, and the Service Use Tax Act, as
6shown on an original monthly return, the Department shall, if
7requested by the taxpayer, issue to the taxpayer a credit
8memorandum no later than 30 days after the date of payment. The
9credit evidenced by such credit memorandum may be assigned by
10the taxpayer to a similar taxpayer under this Act, the Use Tax
11Act, the Service Occupation Tax Act, or the Service Use Tax
12Act, in accordance with reasonable rules and regulations to be
13prescribed by the Department. If no such request is made, the
14taxpayer may credit such excess payment against tax liability
15subsequently to be remitted to the Department under this Act,
16the Use Tax Act, the Service Occupation Tax Act, or the Service
17Use Tax Act, in accordance with reasonable rules and
18regulations prescribed by the Department. If the Department
19subsequently determined that all or any part of the credit
20taken was not actually due to the taxpayer, the taxpayer's
212.1% and 1.75% vendor's discount shall be reduced by 2.1% or
221.75% of the difference between the credit taken and that
23actually due, and that taxpayer shall be liable for penalties
24and interest on such difference.
25 If a retailer of motor fuel is entitled to a credit under
26Section 2d of this Act which exceeds the taxpayer's liability

HB4987- 232 -LRB103 34737 HLH 64585 b
1to the Department under this Act for the month for which the
2taxpayer is filing a return, the Department shall issue the
3taxpayer a credit memorandum for the excess.
4 Beginning January 1, 1990, each month the Department shall
5pay into the Local Government Tax Fund, a special fund in the
6State treasury which is hereby created, the net revenue
7realized for the preceding month from the 1% tax imposed under
8this Act.
9 Beginning August 1, 2024, each month the State Comptroller
10shall order transferred and the State Treasurer shall transfer
11from the General Revenue Fund to the Local Government Tax Fund
12an amount equal to the net revenue that would have been
13realized during the preceding month from sales of the items
14described in item (49) of Section 2-5 if the tax on those items
15had been imposed at the rate of 1%.
16 Beginning January 1, 1990, each month the Department shall
17pay into the County and Mass Transit District Fund, a special
18fund in the State treasury which is hereby created, 4% of the
19net revenue realized for the preceding month from the 6.25%
20general rate other than aviation fuel sold on or after
21December 1, 2019. This exception for aviation fuel only
22applies for so long as the revenue use requirements of 49
23U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
24 Beginning August 1, 2000, each month the Department shall
25pay into the County and Mass Transit District Fund 20% of the
26net revenue realized for the preceding month from the 1.25%

HB4987- 233 -LRB103 34737 HLH 64585 b
1rate on the selling price of motor fuel and gasohol. If, in any
2month, the tax on sales tax holiday items, as defined in
3Section 2-8, is imposed at the rate of 1.25%, then the
4Department shall pay 20% of the net revenue realized for that
5month from the 1.25% rate on the selling price of sales tax
6holiday items into the County and Mass Transit District Fund.
7 Beginning January 1, 1990, each month the Department shall
8pay into the Local Government Tax Fund 16% of the net revenue
9realized for the preceding month from the 6.25% general rate
10on the selling price of tangible personal property other than
11aviation fuel sold on or after December 1, 2019. This
12exception for aviation fuel only applies for so long as the
13revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
1447133 are binding on the State.
15 For aviation fuel sold on or after December 1, 2019, each
16month the Department shall pay into the State Aviation Program
17Fund 20% of the net revenue realized for the preceding month
18from the 6.25% general rate on the selling price of aviation
19fuel, less an amount estimated by the Department to be
20required for refunds of the 20% portion of the tax on aviation
21fuel under this Act, which amount shall be deposited into the
22Aviation Fuel Sales Tax Refund Fund. The Department shall only
23pay moneys into the State Aviation Program Fund and the
24Aviation Fuel Sales Tax Refund Fund under this Act for so long
25as the revenue use requirements of 49 U.S.C. 47107(b) and 49
26U.S.C. 47133 are binding on the State.

HB4987- 234 -LRB103 34737 HLH 64585 b
1 Beginning August 1, 2000, each month the Department shall
2pay into the Local Government Tax Fund 80% of the net revenue
3realized for the preceding month from the 1.25% rate on the
4selling price of motor fuel and gasohol. If, in any month, the
5tax on sales tax holiday items, as defined in Section 2-8, is
6imposed at the rate of 1.25%, then the Department shall pay 80%
7of the net revenue realized for that month from the 1.25% rate
8on the selling price of sales tax holiday items into the Local
9Government Tax Fund.
10 Beginning October 1, 2009, each month the Department shall
11pay into the Capital Projects Fund an amount that is equal to
12an amount estimated by the Department to represent 80% of the
13net revenue realized for the preceding month from the sale of
14candy, grooming and hygiene products, and soft drinks that had
15been taxed at a rate of 1% prior to September 1, 2009 but that
16are now taxed at 6.25%.
17 Beginning July 1, 2011, each month the Department shall
18pay into the Clean Air Act Permit Fund 80% of the net revenue
19realized for the preceding month from the 6.25% general rate
20on the selling price of sorbents used in Illinois in the
21process of sorbent injection as used to comply with the
22Environmental Protection Act or the federal Clean Air Act, but
23the total payment into the Clean Air Act Permit Fund under this
24Act and the Use Tax Act shall not exceed $2,000,000 in any
25fiscal year.
26 Beginning July 1, 2013, each month the Department shall

HB4987- 235 -LRB103 34737 HLH 64585 b
1pay into the Underground Storage Tank Fund from the proceeds
2collected under this Act, the Use Tax Act, the Service Use Tax
3Act, and the Service Occupation Tax Act an amount equal to the
4average monthly deficit in the Underground Storage Tank Fund
5during the prior year, as certified annually by the Illinois
6Environmental Protection Agency, but the total payment into
7the Underground Storage Tank Fund under this Act, the Use Tax
8Act, the Service Use Tax Act, and the Service Occupation Tax
9Act shall not exceed $18,000,000 in any State fiscal year. As
10used in this paragraph, the "average monthly deficit" shall be
11equal to the difference between the average monthly claims for
12payment by the fund and the average monthly revenues deposited
13into the fund, excluding payments made pursuant to this
14paragraph.
15 Beginning July 1, 2015, of the remainder of the moneys
16received by the Department under the Use Tax Act, the Service
17Use Tax Act, the Service Occupation Tax Act, and this Act, each
18month the Department shall deposit $500,000 into the State
19Crime Laboratory Fund.
20 Of the remainder of the moneys received by the Department
21pursuant to this Act, (a) 1.75% thereof shall be paid into the
22Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
23and after July 1, 1989, 3.8% thereof shall be paid into the
24Build Illinois Fund; provided, however, that if in any fiscal
25year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
26may be, of the moneys received by the Department and required

HB4987- 236 -LRB103 34737 HLH 64585 b
1to be paid into the Build Illinois Fund pursuant to this Act,
2Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
3Act, and Section 9 of the Service Occupation Tax Act, such Acts
4being hereinafter called the "Tax Acts" and such aggregate of
52.2% or 3.8%, as the case may be, of moneys being hereinafter
6called the "Tax Act Amount", and (2) the amount transferred to
7the Build Illinois Fund from the State and Local Sales Tax
8Reform Fund shall be less than the Annual Specified Amount (as
9hereinafter defined), an amount equal to the difference shall
10be immediately paid into the Build Illinois Fund from other
11moneys received by the Department pursuant to the Tax Acts;
12the "Annual Specified Amount" means the amounts specified
13below for fiscal years 1986 through 1993:
14Fiscal YearAnnual Specified Amount
151986$54,800,000
161987$76,650,000
171988$80,480,000
181989$88,510,000
191990$115,330,000
201991$145,470,000
211992$182,730,000
221993$206,520,000;
23and means the Certified Annual Debt Service Requirement (as
24defined in Section 13 of the Build Illinois Bond Act) or the
25Tax Act Amount, whichever is greater, for fiscal year 1994 and
26each fiscal year thereafter; and further provided, that if on

HB4987- 237 -LRB103 34737 HLH 64585 b
1the last business day of any month the sum of (1) the Tax Act
2Amount required to be deposited into the Build Illinois Bond
3Account in the Build Illinois Fund during such month and (2)
4the amount transferred to the Build Illinois Fund from the
5State and Local Sales Tax Reform Fund shall have been less than
61/12 of the Annual Specified Amount, an amount equal to the
7difference shall be immediately paid into the Build Illinois
8Fund from other moneys received by the Department pursuant to
9the Tax Acts; and, further provided, that in no event shall the
10payments required under the preceding proviso result in
11aggregate payments into the Build Illinois Fund pursuant to
12this clause (b) for any fiscal year in excess of the greater of
13(i) the Tax Act Amount or (ii) the Annual Specified Amount for
14such fiscal year. The amounts payable into the Build Illinois
15Fund under clause (b) of the first sentence in this paragraph
16shall be payable only until such time as the aggregate amount
17on deposit under each trust indenture securing Bonds issued
18and outstanding pursuant to the Build Illinois Bond Act is
19sufficient, taking into account any future investment income,
20to fully provide, in accordance with such indenture, for the
21defeasance of or the payment of the principal of, premium, if
22any, and interest on the Bonds secured by such indenture and on
23any Bonds expected to be issued thereafter and all fees and
24costs payable with respect thereto, all as certified by the
25Director of the Bureau of the Budget (now Governor's Office of
26Management and Budget). If on the last business day of any

HB4987- 238 -LRB103 34737 HLH 64585 b
1month in which Bonds are outstanding pursuant to the Build
2Illinois Bond Act, the aggregate of moneys deposited in the
3Build Illinois Bond Account in the Build Illinois Fund in such
4month shall be less than the amount required to be transferred
5in such month from the Build Illinois Bond Account to the Build
6Illinois Bond Retirement and Interest Fund pursuant to Section
713 of the Build Illinois Bond Act, an amount equal to such
8deficiency shall be immediately paid from other moneys
9received by the Department pursuant to the Tax Acts to the
10Build Illinois Fund; provided, however, that any amounts paid
11to the Build Illinois Fund in any fiscal year pursuant to this
12sentence shall be deemed to constitute payments pursuant to
13clause (b) of the first sentence of this paragraph and shall
14reduce the amount otherwise payable for such fiscal year
15pursuant to that clause (b). The moneys received by the
16Department pursuant to this Act and required to be deposited
17into the Build Illinois Fund are subject to the pledge, claim
18and charge set forth in Section 12 of the Build Illinois Bond
19Act.
20 Subject to payment of amounts into the Build Illinois Fund
21as provided in the preceding paragraph or in any amendment
22thereto hereafter enacted, the following specified monthly
23installment of the amount requested in the certificate of the
24Chairman of the Metropolitan Pier and Exposition Authority
25provided under Section 8.25f of the State Finance Act, but not
26in excess of sums designated as "Total Deposit", shall be

HB4987- 239 -LRB103 34737 HLH 64585 b
1deposited in the aggregate from collections under Section 9 of
2the Use Tax Act, Section 9 of the Service Use Tax Act, Section
39 of the Service Occupation Tax Act, and Section 3 of the
4Retailers' Occupation Tax Act into the McCormick Place
5Expansion Project Fund in the specified fiscal years.
6Fiscal YearTotal Deposit
71993 $0
81994 53,000,000
91995 58,000,000
101996 61,000,000
111997 64,000,000
121998 68,000,000
131999 71,000,000
142000 75,000,000
152001 80,000,000
162002 93,000,000
172003 99,000,000
182004103,000,000
192005108,000,000
202006113,000,000
212007119,000,000
222008126,000,000
232009132,000,000
242010139,000,000
252011146,000,000
262012153,000,000

HB4987- 240 -LRB103 34737 HLH 64585 b
12013161,000,000
22014170,000,000
32015179,000,000
42016189,000,000
52017199,000,000
62018210,000,000
72019221,000,000
82020233,000,000
92021300,000,000
102022300,000,000
112023300,000,000
122024 300,000,000
132025 300,000,000
142026 300,000,000
152027 375,000,000
162028 375,000,000
172029 375,000,000
182030 375,000,000
192031 375,000,000
202032 375,000,000
212033375,000,000
222034375,000,000
232035375,000,000
242036450,000,000
25and
26each fiscal year

HB4987- 241 -LRB103 34737 HLH 64585 b
1thereafter that bonds
2are outstanding under
3Section 13.2 of the
4Metropolitan Pier and
5Exposition Authority Act,
6but not after fiscal year 2060.
7 Beginning July 20, 1993 and in each month of each fiscal
8year thereafter, one-eighth of the amount requested in the
9certificate of the Chairman of the Metropolitan Pier and
10Exposition Authority for that fiscal year, less the amount
11deposited into the McCormick Place Expansion Project Fund by
12the State Treasurer in the respective month under subsection
13(g) of Section 13 of the Metropolitan Pier and Exposition
14Authority Act, plus cumulative deficiencies in the deposits
15required under this Section for previous months and years,
16shall be deposited into the McCormick Place Expansion Project
17Fund, until the full amount requested for the fiscal year, but
18not in excess of the amount specified above as "Total
19Deposit", has been deposited.
20 Subject to payment of amounts into the Capital Projects
21Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
22and the McCormick Place Expansion Project Fund pursuant to the
23preceding paragraphs or in any amendments thereto hereafter
24enacted, for aviation fuel sold on or after December 1, 2019,
25the Department shall each month deposit into the Aviation Fuel
26Sales Tax Refund Fund an amount estimated by the Department to

HB4987- 242 -LRB103 34737 HLH 64585 b
1be required for refunds of the 80% portion of the tax on
2aviation fuel under this Act. The Department shall only
3deposit moneys into the Aviation Fuel Sales Tax Refund Fund
4under this paragraph for so long as the revenue use
5requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
6binding on the State.
7 Subject to payment of amounts into the Build Illinois Fund
8and the McCormick Place Expansion Project Fund pursuant to the
9preceding paragraphs or in any amendments thereto hereafter
10enacted, beginning July 1, 1993 and ending on September 30,
112013, the Department shall each month pay into the Illinois
12Tax Increment Fund 0.27% of 80% of the net revenue realized for
13the preceding month from the 6.25% general rate on the selling
14price of tangible personal property.
15 Subject to payment of amounts into the Build Illinois
16Fund, the McCormick Place Expansion Project Fund, and the
17Illinois Tax Increment Fund pursuant to the preceding
18paragraphs or in any amendments to this Section hereafter
19enacted, beginning on the first day of the first calendar
20month to occur on or after August 26, 2014 (the effective date
21of Public Act 98-1098), each month, from the collections made
22under Section 9 of the Use Tax Act, Section 9 of the Service
23Use Tax Act, Section 9 of the Service Occupation Tax Act, and
24Section 3 of the Retailers' Occupation Tax Act, the Department
25shall pay into the Tax Compliance and Administration Fund, to
26be used, subject to appropriation, to fund additional auditors

HB4987- 243 -LRB103 34737 HLH 64585 b
1and compliance personnel at the Department of Revenue, an
2amount equal to 1/12 of 5% of 80% of the cash receipts
3collected during the preceding fiscal year by the Audit Bureau
4of the Department under the Use Tax Act, the Service Use Tax
5Act, the Service Occupation Tax Act, the Retailers' Occupation
6Tax Act, and associated local occupation and use taxes
7administered by the Department.
8 Subject to payments of amounts into the Build Illinois
9Fund, the McCormick Place Expansion Project Fund, the Illinois
10Tax Increment Fund, the Energy Infrastructure Fund, and the
11Tax Compliance and Administration Fund as provided in this
12Section, beginning on July 1, 2018 the Department shall pay
13each month into the Downstate Public Transportation Fund the
14moneys required to be so paid under Section 2-3 of the
15Downstate Public Transportation Act.
16 Subject to successful execution and delivery of a
17public-private agreement between the public agency and private
18entity and completion of the civic build, beginning on July 1,
192023, of the remainder of the moneys received by the
20Department under the Use Tax Act, the Service Use Tax Act, the
21Service Occupation Tax Act, and this Act, the Department shall
22deposit the following specified deposits in the aggregate from
23collections under the Use Tax Act, the Service Use Tax Act, the
24Service Occupation Tax Act, and the Retailers' Occupation Tax
25Act, as required under Section 8.25g of the State Finance Act
26for distribution consistent with the Public-Private

HB4987- 244 -LRB103 34737 HLH 64585 b
1Partnership for Civic and Transit Infrastructure Project Act.
2The moneys received by the Department pursuant to this Act and
3required to be deposited into the Civic and Transit
4Infrastructure Fund are subject to the pledge, claim and
5charge set forth in Section 25-55 of the Public-Private
6Partnership for Civic and Transit Infrastructure Project Act.
7As used in this paragraph, "civic build", "private entity",
8"public-private agreement", and "public agency" have the
9meanings provided in Section 25-10 of the Public-Private
10Partnership for Civic and Transit Infrastructure Project Act.
11 Fiscal Year.............................Total Deposit
12 2024.....................................$200,000,000
13 2025....................................$206,000,000
14 2026....................................$212,200,000
15 2027....................................$218,500,000
16 2028....................................$225,100,000
17 2029....................................$288,700,000
18 2030....................................$298,900,000
19 2031....................................$309,300,000
20 2032....................................$320,100,000
21 2033....................................$331,200,000
22 2034....................................$341,200,000
23 2035....................................$351,400,000
24 2036....................................$361,900,000
25 2037....................................$372,800,000
26 2038....................................$384,000,000

HB4987- 245 -LRB103 34737 HLH 64585 b
1 2039....................................$395,500,000
2 2040....................................$407,400,000
3 2041....................................$419,600,000
4 2042....................................$432,200,000
5 2043....................................$445,100,000
6 Beginning July 1, 2021 and until July 1, 2022, subject to
7the payment of amounts into the County and Mass Transit
8District Fund, the Local Government Tax Fund, the Build
9Illinois Fund, the McCormick Place Expansion Project Fund, the
10Illinois Tax Increment Fund, and the Tax Compliance and
11Administration Fund as provided in this Section, the
12Department shall pay each month into the Road Fund the amount
13estimated to represent 16% of the net revenue realized from
14the taxes imposed on motor fuel and gasohol. Beginning July 1,
152022 and until July 1, 2023, subject to the payment of amounts
16into the County and Mass Transit District Fund, the Local
17Government Tax Fund, the Build Illinois Fund, the McCormick
18Place Expansion Project Fund, the Illinois Tax Increment Fund,
19and the Tax Compliance and Administration Fund as provided in
20this Section, the Department shall pay each month into the
21Road Fund the amount estimated to represent 32% of the net
22revenue realized from the taxes imposed on motor fuel and
23gasohol. Beginning July 1, 2023 and until July 1, 2024,
24subject to the payment of amounts into the County and Mass
25Transit District Fund, the Local Government Tax Fund, the
26Build Illinois Fund, the McCormick Place Expansion Project

HB4987- 246 -LRB103 34737 HLH 64585 b
1Fund, the Illinois Tax Increment Fund, and the Tax Compliance
2and Administration Fund as provided in this Section, the
3Department shall pay each month into the Road Fund the amount
4estimated to represent 48% of the net revenue realized from
5the taxes imposed on motor fuel and gasohol. Beginning July 1,
62024 and until July 1, 2025, subject to the payment of amounts
7into the County and Mass Transit District Fund, the Local
8Government Tax Fund, the Build Illinois Fund, the McCormick
9Place Expansion Project Fund, the Illinois Tax Increment Fund,
10and the Tax Compliance and Administration Fund as provided in
11this Section, the Department shall pay each month into the
12Road Fund the amount estimated to represent 64% of the net
13revenue realized from the taxes imposed on motor fuel and
14gasohol. Beginning on July 1, 2025, subject to the payment of
15amounts into the County and Mass Transit District Fund, the
16Local Government Tax Fund, the Build Illinois Fund, the
17McCormick Place Expansion Project Fund, the Illinois Tax
18Increment Fund, and the Tax Compliance and Administration Fund
19as provided in this Section, the Department shall pay each
20month into the Road Fund the amount estimated to represent 80%
21of the net revenue realized from the taxes imposed on motor
22fuel and gasohol. As used in this paragraph "motor fuel" has
23the meaning given to that term in Section 1.1 of the Motor Fuel
24Tax Law, and "gasohol" has the meaning given to that term in
25Section 3-40 of the Use Tax Act.
26 Of the remainder of the moneys received by the Department

HB4987- 247 -LRB103 34737 HLH 64585 b
1pursuant to this Act, 75% thereof shall be paid into the State
2treasury and 25% shall be reserved in a special account and
3used only for the transfer to the Common School Fund as part of
4the monthly transfer from the General Revenue Fund in
5accordance with Section 8a of the State Finance Act.
6 The Department may, upon separate written notice to a
7taxpayer, require the taxpayer to prepare and file with the
8Department on a form prescribed by the Department within not
9less than 60 days after receipt of the notice an annual
10information return for the tax year specified in the notice.
11Such annual return to the Department shall include a statement
12of gross receipts as shown by the retailer's last federal
13Federal income tax return. If the total receipts of the
14business as reported in the federal Federal income tax return
15do not agree with the gross receipts reported to the
16Department of Revenue for the same period, the retailer shall
17attach to his annual return a schedule showing a
18reconciliation of the 2 amounts and the reasons for the
19difference. The retailer's annual return to the Department
20shall also disclose the cost of goods sold by the retailer
21during the year covered by such return, opening and closing
22inventories of such goods for such year, costs of goods used
23from stock or taken from stock and given away by the retailer
24during such year, payroll information of the retailer's
25business during such year and any additional reasonable
26information which the Department deems would be helpful in

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1determining the accuracy of the monthly, quarterly, or annual
2returns filed by such retailer as provided for in this
3Section.
4 If the annual information return required by this Section
5is not filed when and as required, the taxpayer shall be liable
6as follows:
7 (i) Until January 1, 1994, the taxpayer shall be
8 liable for a penalty equal to 1/6 of 1% of the tax due from
9 such taxpayer under this Act during the period to be
10 covered by the annual return for each month or fraction of
11 a month until such return is filed as required, the
12 penalty to be assessed and collected in the same manner as
13 any other penalty provided for in this Act.
14 (ii) On and after January 1, 1994, the taxpayer shall
15 be liable for a penalty as described in Section 3-4 of the
16 Uniform Penalty and Interest Act.
17 The chief executive officer, proprietor, owner, or highest
18ranking manager shall sign the annual return to certify the
19accuracy of the information contained therein. Any person who
20willfully signs the annual return containing false or
21inaccurate information shall be guilty of perjury and punished
22accordingly. The annual return form prescribed by the
23Department shall include a warning that the person signing the
24return may be liable for perjury.
25 The provisions of this Section concerning the filing of an
26annual information return do not apply to a retailer who is not

HB4987- 249 -LRB103 34737 HLH 64585 b
1required to file an income tax return with the United States
2Government.
3 As soon as possible after the first day of each month, upon
4certification of the Department of Revenue, the Comptroller
5shall order transferred and the Treasurer shall transfer from
6the General Revenue Fund to the Motor Fuel Tax Fund an amount
7equal to 1.7% of 80% of the net revenue realized under this Act
8for the second preceding month. Beginning April 1, 2000, this
9transfer is no longer required and shall not be made.
10 Net revenue realized for a month shall be the revenue
11collected by the State pursuant to this Act, less the amount
12paid out during that month as refunds to taxpayers for
13overpayment of liability.
14 For greater simplicity of administration, manufacturers,
15importers and wholesalers whose products are sold at retail in
16Illinois by numerous retailers, and who wish to do so, may
17assume the responsibility for accounting and paying to the
18Department all tax accruing under this Act with respect to
19such sales, if the retailers who are affected do not make
20written objection to the Department to this arrangement.
21 Any person who promotes, organizes, or provides retail
22selling space for concessionaires or other types of sellers at
23the Illinois State Fair, DuQuoin State Fair, county fairs,
24local fairs, art shows, flea markets, and similar exhibitions
25or events, including any transient merchant as defined by
26Section 2 of the Transient Merchant Act of 1987, is required to

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1file a report with the Department providing the name of the
2merchant's business, the name of the person or persons engaged
3in merchant's business, the permanent address and Illinois
4Retailers Occupation Tax Registration Number of the merchant,
5the dates and location of the event, and other reasonable
6information that the Department may require. The report must
7be filed not later than the 20th day of the month next
8following the month during which the event with retail sales
9was held. Any person who fails to file a report required by
10this Section commits a business offense and is subject to a
11fine not to exceed $250.
12 Any person engaged in the business of selling tangible
13personal property at retail as a concessionaire or other type
14of seller at the Illinois State Fair, county fairs, art shows,
15flea markets, and similar exhibitions or events, or any
16transient merchants, as defined by Section 2 of the Transient
17Merchant Act of 1987, may be required to make a daily report of
18the amount of such sales to the Department and to make a daily
19payment of the full amount of tax due. The Department shall
20impose this requirement when it finds that there is a
21significant risk of loss of revenue to the State at such an
22exhibition or event. Such a finding shall be based on evidence
23that a substantial number of concessionaires or other sellers
24who are not residents of Illinois will be engaging in the
25business of selling tangible personal property at retail at
26the exhibition or event, or other evidence of a significant

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1risk of loss of revenue to the State. The Department shall
2notify concessionaires and other sellers affected by the
3imposition of this requirement. In the absence of notification
4by the Department, the concessionaires and other sellers shall
5file their returns as otherwise required in this Section.
6(Source: P.A. 102-634, eff. 8-27-21; 102-700, Article 60,
7Section 60-30, eff. 4-19-22; 102-700, Article 65, Section
865-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff.
91-1-23; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23; 103-363,
10eff. 7-28-23; revised 9-27-23.)
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