Bill Text: IL SB0690 | 2019-2020 | 101st General Assembly | Enrolled

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Amends the Invest in Kids Act. Makes a technical change in a Section concerning the short title.

Spectrum: Strong Partisan Bill (Democrat 10-1)

Status: (Passed) 2019-06-28 - Public Act . . . . . . . . . 101-0031 [SB0690 Detail]

Download: Illinois-2019-SB0690-Enrolled.html



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1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4
Article 5. Leveling the Playing Field for Illinois Retail Act
5 Section 5-1. Short title. This Article may be cited as the
6Leveling the Playing Field for Illinois Retail Act. References
7in this Article to "this Act" means this Article.
8 Section 5-5. Findings. The General Assembly finds that
9certified service providers and certified automated systems
10simplify use and occupation tax compliance for out-of-state
11sellers, which fosters higher levels of accurate tax collection
12and remittance and generates administrative savings and new
13marginal tax revenue for both State and local taxing
14jurisdictions. By making the services of certified service
15providers and certified automated systems available to remote
16retailers without charge as provided in this Act, the State
17will substantially eliminate the burden on those remote
18retailers to collect and remit both State and local taxing
19jurisdiction use and occupation taxes. While providing a means
20for remote retailers to collect and remit tax on an even basis
21with Illinois retailers, this Act also protects existing local
22tax revenue streams by retaining origin sourcing for all

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1transactions by retailers maintaining a physical presence in
2Illinois.
3 Section 5-10. Definitions. As used in this Act:
4 "Certified service provider" means an agent certified by
5the Department to perform the remote retailer's use and
6occupation tax functions, as outlined in the contract between
7the State and the certified service provider.
8 "Certified automated system" means an automated software
9system that is certified by the State as meeting all
10performance and tax calculation standards required by
11Department rules.
12 "Department" means the Department of Revenue.
13 "Remote retailer" means a retailer as defined in Section 1
14of the Retailers' Occupation Tax Act that has an obligation to
15collect State and local retailers' occupation tax under
16subsection (b) of Section 2 of the Retailers' Occupation Tax
17Act.
18 "Retailers' occupation tax" means the tax levied under the
19Retailers' Occupation Tax Act and all applicable local
20retailers' occupation taxes collected by the Department in
21conjunction with the State retailers' occupation tax.
22 Section 5-15. Certification of certified service
23providers. The Department shall, no later than December 31,
242019, establish standards for the certification of certified

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1service providers and certified automated systems and may act
2jointly with other states to accomplish these ends.
3 The Department may take other actions reasonably required
4to implement the provisions of this Act, including the adoption
5of rules and emergency rules and the procurement of goods and
6services, which also may be coordinated jointly with other
7states.
8 Section 5-20. Provision of databases. The Department
9shall, no later than July 1, 2020:
10 (1) provide and maintain an electronic, downloadable
11 database of defined product categories that identifies the
12 taxability of each category;
13 (2) provide and maintain an electronic, downloadable
14 database of all retailers' occupation tax rates for the
15 jurisdictions in this State that levy a retailers'
16 occupation tax; and
17 (3) provide and maintain an electronic, downloadable
18 database that assigns delivery addresses in this State to
19 the applicable taxing jurisdictions.
20 Section 5-25. Certification. The Department shall, no
21later than July 1, 2020:
22 (1) provide uniform minimum standards that companies
23 wishing to be designated as a certified service provider in
24 this State must meet; those minimum standards must include

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1 an expedited certification process for companies that have
2 been certified in at least 5 other states;
3 (2) provide uniform minimum standards that certified
4 automated systems must meet; those minimum standards may
5 include an expedited certification process for automated
6 systems that have been certified in at least 5 other
7 states;
8 (3) establish a certification process to review the
9 systems of companies wishing to be designated as a
10 certified service provider in this State or of companies
11 wishing to use a certified automated process; this
12 certification process shall provide that companies that
13 meet all required standards and whose systems have been
14 tested and approved by the Department for properly
15 determining the taxability of items to be sold, the correct
16 tax rate to apply to a transaction, and the appropriate
17 jurisdictions to which the tax shall be remitted, shall be
18 certified;
19 (4) enter into a contractual relationship with each
20 company that qualifies as a certified service provider or
21 that will be using a certified automated system; those
22 contracts shall, at a minimum, provide:
23 (A) the responsibilities of the certified service
24 provider and the remote retailers that contract with
25 the certified service provider or the user of a
26 certified automated system related to liability for

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1 proper collection and remittance of use and occupation
2 taxes;
3 (B) the responsibilities of the certified service
4 provider and the remote retailers that contract with
5 the certified service provider or the user of a
6 certified service provider related to record keeping
7 and auditing;
8 (C) for the protection and confidentiality of tax
9 information; and
10 (D) compensation equal to 1.75% of the tax dollars
11 collected and remitted to the State by a certified
12 service provider on a timely basis on behalf of remote
13 retailers; remote retailers using a certified service
14 provider may not claim the vendor's discount allowed
15 under the Retailers' Occupation Tax Act or the Service
16 Occupation Tax Act.
17 The provisions of this Section shall supersede the
18provisions of the Illinois Procurement Code.
19 Section 5-30. Relief from liability. Beginning January 1,
202020, remote retailers using certified service providers or
21certified automated systems and their certified service
22providers or certified automated systems providers are
23relieved from liability to the State for having charged and
24collected the incorrect amount of use or occupation tax
25resulting from a certified service provider or certified

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1automated system relying, at the time of the sale, on: (1)
2erroneous data provided by the State in database files on tax
3rates, boundaries, or taxing jurisdictions; or (2) erroneous
4data provided by the State concerning the taxability of
5products and services.
6 The Department shall, to the best of its ability, assign
7addresses to the proper local taxing jurisdiction using a
89-digit zip code identifier. On an annual basis, the Department
9shall make available to local taxing jurisdictions the taxing
10jurisdiction boundaries determined by the Department for their
11verification. If a jurisdiction fails to verify their taxing
12jurisdiction boundaries to the Department in any given year,
13the Department shall assign retailers' occupation tax revenue
14from remote retail sales based on its best information. In that
15case, tax revenues from remote retail sales remitted to a
16taxing jurisdiction based on erroneous local tax boundary
17information will be assigned to the correct taxing jurisdiction
18on a prospective basis upon notice of the boundary error from a
19local taxing jurisdiction. No certified service provider or
20remote retailer using a certified automated system shall be
21subject to a class action brought on behalf of customers and
22arising from, or in any way related to, an overpayment of
23retailers' occupation tax collected by the certified service
24provider if, at the time of the sale, they relied on
25information provided by the Department, regardless of whether
26that claim is characterized as a tax refund claim. Nothing in

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1this Section affects a customer's right to seek a refund from
2the remote retailer as provided in this Act.
3 Section 5-97. Severability. The provisions of this Act are
4severable under Section 1.31 of the Statute on Statutes.
5
Article 10. Parking Excise Tax Act
6 Section 10-1. Short title. This Article may be cited as the
7Parking Excise Tax Act. References in this Article to "this
8Act" mean this Article.
9 Section 10-5. Definitions.
10 "Booking intermediary" means any person or entity that
11facilitates the processing and fulfillment of reservation
12transactions between an operator and a person or entity
13desiring parking in a parking lot or garage of that operator.
14 "Charge or fee paid for parking" means the gross amount of
15consideration for the use or privilege of parking a motor
16vehicle in or upon any parking lot or garage in the State,
17collected by an operator and valued in money, whether received
18in money or otherwise, including cash, credits, property, and
19services, determined without any deduction for costs or
20expenses, but not including charges that are added to the
21charge or fee on account of the tax imposed by this Act or on
22account of any other tax imposed on the charge or fee. "Charge

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1or fee paid for parking" excludes separately stated charges not
2for the use or privilege or parking and excludes amounts
3retained by or paid to a booking intermediary for services
4provided by the booking intermediary. If any separately stated
5charge is not optional, it shall be presumed that it is part of
6the charge for the use or privilege or parking.
7 "Department" means the Department of Revenue.
8 "Operator" means any person who engages in the business of
9operating a parking area or garage, or who, directly or through
10an agreement or arrangement with another party, collects the
11consideration for parking or storage of motor vehicles,
12recreational vehicles, or other self-propelled vehicles, at
13that parking place. This includes, but is not limited to, any
14facilitator or aggregator that collects from the purchaser the
15charge or fee paid for parking. "Operator" does not include a
16bank, credit card company, payment processor, booking
17intermediary, or person whose involvement is limited to
18performing functions that are similar to those performed by a
19bank, credit card company, payment processor, or booking
20intermediary.
21 "Parking area or garage" means any real estate, building,
22structure, premises, enclosure or other place, whether
23enclosed or not, except a public way, within the State, where
24motor vehicles, recreational vehicles, or other self-propelled
25vehicles, are stored, housed or parked for hire, charge, fee or
26other valuable consideration in a condition ready for use, or

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1where rent or compensation is paid to the owner, manager,
2operator or lessee of the premises for the housing, storing,
3sheltering, keeping or maintaining motor vehicles,
4recreational vehicles, or other self-propelled vehicles.
5"Parking area or garage" includes any parking area or garage,
6whether the vehicle is parked by the owner of the vehicle or by
7the operator or an attendant.
8 "Person" means any natural individual, firm, trust,
9estate, partnership, association, joint stock company, joint
10venture, corporation, limited liability company, or a
11receiver, trustee, guardian, or other representative appointed
12by order of any court.
13 "Purchase price" means the consideration paid for the
14purchase of a parking space in a parking area or garage, valued
15in money, whether received in money or otherwise, including
16cash, gift cards, credits, and property, and shall be
17determined without any deduction on account of the cost of
18materials used, labor or service costs, or any other expense
19whatsoever.
20 "Purchase price" includes any and all charges that the
21recipient pays related to or incidental to obtaining the use or
22privilege of using a parking space in a parking area or garage,
23including but not limited to any and all related markups,
24service fees, convenience fees, facilitation fees,
25cancellation fees, overtime fees, or other such charges,
26regardless of terminology. However, "purchase price" shall not

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1include consideration paid for:
2 (1) optional, separately stated charges not for the use
3 or privilege of using a parking space in the parking area
4 or garage;
5 (2) any charge for a dishonored check;
6 (3) any finance or credit charge, penalty or charge for
7 delayed payment, or discount for prompt payment;
8 (4) any purchase by a purchaser if the operator is
9 prohibited by federal or State Constitution, treaty,
10 convention, statute or court decision from collecting the
11 tax from such purchaser;
12 (5) the isolated or occasional sale of parking spaces
13 subject to tax under this Act by a person who does not hold
14 himself out as being engaged (or who does not habitually
15 engage) in selling of parking spaces; and
16 (6) any amounts added to a purchaser's bills because of
17 charges made pursuant to the tax imposed by this Act. If
18 credit is extended, then the amount thereof shall be
19 included only as and when payments are made.
20 "Purchaser" means any person who acquires a parking space
21in a parking area or garage for use for valuable consideration.
22 "Use" means the exercise by any person of any right or
23power over, or the enjoyment of, a parking space in a parking
24area or garage subject to tax under this Act.
25 Section 10-10. Imposition of tax; calculation of tax.

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1 (a) Beginning on January 1, 2020, a tax is imposed on the
2privilege of using in this State a parking space in a parking
3area or garage for the use of parking one or more motor
4vehicles, recreational vehicles, or other self-propelled
5vehicles, at the rate of:
6 (1) 6% of the purchase price for a parking space paid
7 for on an hourly, daily, or weekly basis; and
8 (2) 9% of the purchase price for a parking space paid
9 for on a monthly or annual basis.
10 (b) The tax shall be collected from the purchaser by the
11operator.
12 (c) An operator that has paid or remitted the tax imposed
13by this Act to another operator in connection with the same
14parking transaction, or the use of the same parking space, that
15is subject to tax under this Act, shall be entitled to a credit
16for such tax paid or remitted against the amount of tax owed
17under this Act, provided that the other operator is registered
18under this Act. The operator claiming the credit shall have the
19burden of proving it is entitled to claim a credit.
20 (d) If any operator erroneously collects tax or collects
21more from the purchaser than the purchaser's liability for the
22transaction, the purchaser shall have a legal right to claim a
23refund of such amount from the operator. However, if such
24amount is not refunded to the purchaser for any reason, the
25operator is liable to pay such amount to the Department.
26 (e) The tax imposed by this Section is not imposed with

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1respect to any transaction in interstate commerce, to the
2extent that the transaction may not, under the Constitution and
3statutes of the United States, be made the subject of taxation
4by this State.
5 Section 10-15. Filing of returns and deposit of proceeds.
6On or before the last day of each calendar month, every
7operator engaged in the business of providing to purchasers
8parking areas and garages in this State during the preceding
9calendar month shall file a return with the Department,
10stating:
11 (1) the name of the operator;
12 (2) the address of its principal place of business and
13 the address of the principal place of business from which
14 it provides parking areas and garages in this State;
15 (3) the total amount of receipts received by the
16 operator during the preceding calendar month or quarter, as
17 the case may be, from sales of parking spaces to purchasers
18 in parking areas or garages during the preceding calendar
19 month or quarter;
20 (4) deductions allowed by law;
21 (5) the total amount of receipts received by the
22 operator during the preceding calendar month or quarter
23 upon which the tax was computed;
24 (6) the amount of tax due; and
25 (7) such other reasonable information as the

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1 Department may require.
2 If an operator ceases to engage in the kind of business
3that makes it responsible for filing returns under this Act,
4then that operator shall file a final return under this Act
5with the Department on or before the last day of the month
6after discontinuing such business.
7 All returns required to be filed and payments required to
8be made under this Act shall be by electronic means. Taxpayers
9who demonstrate hardship in filing or paying electronically may
10petition the Department to waive the electronic filing or
11payment requirement, or both. The Department may require a
12separate return for the tax under this Act or combine the
13return for the tax under this Act with the return for other
14taxes.
15 If the same person has more than one business registered
16with the Department under separate registrations under this
17Act, that person shall not file each return that is due as a
18single return covering all such registered businesses but shall
19file separate returns for each such registered business.
20 If the operator is a corporation, the return filed on
21behalf of that corporation shall be signed by the president,
22vice-president, secretary, or treasurer, or by a properly
23accredited agent of such corporation.
24 The operator filing the return under this Act shall, at the
25time of filing the return, pay to the Department the amount of
26tax imposed by this Act less a discount of 1.75%, not to exceed

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1$1,000 per month, which is allowed to reimburse the operator
2for the expenses incurred in keeping records, preparing and
3filing returns, remitting the tax, and supplying data to the
4Department on request.
5 If any payment provided for in this Section exceeds the
6taxpayer's liabilities under this Act, as shown on an original
7return, the Department may authorize the taxpayer to credit
8such excess payment against liability subsequently to be
9remitted to the Department under this Act, in accordance with
10reasonable rules adopted by the Department. If the Department
11subsequently determines that all or any part of the credit
12taken was not actually due to the taxpayer, the taxpayer's
13discount shall be reduced by an amount equal to the difference
14between the discount as applied to the credit taken and that
15actually due, and that taxpayer shall be liable for penalties
16and interest on such difference.
17 Section 10-20. Exemptions. The tax imposed by this Act
18shall not apply to:
19 (1) parking in a parking area or garage operated by the
20 federal government or its instrumentalities that has been
21 issued an active tax exemption number by the Department
22 under Section 1g of the Retailers' Occupation Tax Act; for
23 this exemption to apply, the parking area or garage must be
24 operated by the federal government or its
25 instrumentalities; the exemption under this paragraph (1)

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1 does not apply if the parking area or garage is operated by
2 a third party, whether under a lease or other contractual
3 arrangement, or any other manner whatsoever;
4 (2) residential off-street parking for home or
5 apartment tenants or condominium occupants, if the
6 arrangement for such parking is provided in the home or
7 apartment lease or in a separate writing between the
8 landlord and tenant, or in a condominium agreement between
9 the condominium association and the owner, occupant, or
10 guest of a unit, whether the parking charge is payable to
11 the landlord, condominium association, or to the operator
12 of the parking spaces;
13 (3) parking by hospital employees in a parking space
14 that is owned and operated by the hospital for which they
15 work; and
16 (4) parking in a parking area or garage where 3 or
17 fewer motor vehicles are stored, housed, or parked for
18 hire, charge, fee or other valuable consideration, if the
19 operator of the parking area or garage does not act as the
20 operator of more than a total of 3 parking spaces located
21 in the State; if any operator of parking areas or garages,
22 including any facilitator or aggregator, acts as an
23 operator of more than 3 parking spaces in total that are
24 located in the State, then this exemption shall not apply
25 to any of those spaces.

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1 Section 10-25. Collection of tax.
2 (a) Beginning with bills issued or charges collected for a
3purchase of a parking space in a parking area or garage on and
4after January 1, 2020, the tax imposed by this Act shall be
5collected from the purchaser by the operator at the rate stated
6in Section 10-10 and shall be remitted to the Department as
7provided in this Act. All charges for parking spaces in a
8parking area or garage are presumed subject to tax collection.
9Operators shall collect the tax from purchasers by adding the
10tax to the amount of the purchase price received from the
11purchaser. The tax imposed by the Act shall when collected be
12stated as a distinct item separate and apart from the purchase
13price of the service subject to tax under this Act. However,
14where it is not possible to state the tax separately the
15Department may by rule exempt such purchases from this
16requirement so long as purchasers are notified by language on
17the invoice or notified by a sign that the tax is included in
18the purchase price.
19 (b) Any person purchasing a parking space in a parking area
20or garage subject to tax under this Act as to which there has
21been no charge made to him of the tax imposed by Section 10-10,
22shall make payment of the tax imposed by Section 10-10 of this
23Act in the form and manner provided by the Department, such
24payment to be made to the Department in the manner and form
25required by the Department not later than the 20th day of the
26month following the month of purchase of the parking space.

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1 Section 10-30. Registration of operators.
2 (a) A person who engages in business as an operator of a
3parking area or garage in this State shall register with the
4Department. Application for a certificate of registration
5shall be made to the Department, by electronic means, in the
6form and manner prescribed by the Department and shall contain
7any reasonable information the Department may require. Upon
8receipt of the application for a certificate of registration in
9proper form and manner, the Department shall issue to the
10applicant a certificate of registration. Operators who
11demonstrate that they do not have access to the Internet or
12demonstrate hardship in applying electronically may petition
13the Department to waive the electronic application
14requirements.
15 (b) The Department may refuse to issue or reissue a
16certificate of registration to any applicant for the reasons
17set forth in Section 2505-380 of the Department of Revenue Law
18of the Civil Administrative Code of Illinois.
19 (c) Any person aggrieved by any decision of the Department
20under this Section may, within 20 days after notice of such
21decision, protest and request a hearing, whereupon the
22Department shall give notice to such person of the time and
23place fixed for such hearing and shall hold a hearing in
24conformity with the provisions of this Act and then issue its
25final administrative decision in the matter to such person. In

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1the absence of such a protest within 20 days, the Department's
2decision shall become final without any further determination
3being made or notice given.
4 Section 10-35. Revocation of certificate of registration.
5 (a) The Department may, after notice and a hearing as
6provided in this Act, revoke the certificate of registration of
7any operator who violates any of the provisions of this Act or
8any rule adopted pursuant to this Act. Before revocation of a
9certificate of registration, the Department shall, within 90
10days after non-compliance and at least 7 days prior to the date
11of the hearing, give the operator so accused notice in writing
12of the charge against him or her, and on the date designated
13shall conduct a hearing upon this matter. The lapse of such
1490-day period shall not preclude the Department from conducting
15revocation proceedings at a later date if necessary. Any
16hearing held under this Section shall be conducted by the
17Director or by any officer or employee of the Department
18designated in writing by the Director.
19 (b) The Department may revoke a certificate of registration
20for the reasons set forth in Section 2505-380 of the Department
21of Revenue Law of the Civil Administrative Code of Illinois.
22 (c) Upon the hearing of any such proceeding, the Director
23or any officer or employee of the Department designated in
24writing by the Director may administer oaths, and the
25Department may procure by its subpoena the attendance of

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1witnesses and, by its subpoena duces tecum, the production of
2relevant books and papers. Any circuit court, upon application
3either of the operator or of the Department, may, by order duly
4entered, require the attendance of witnesses and the production
5of relevant books and papers before the Department in any
6hearing relating to the revocation of certificates of
7registration. Upon refusal or neglect to obey the order of the
8court, the court may compel obedience thereof by proceedings
9for contempt.
10 (d) The Department may, by application to any circuit
11court, obtain an injunction requiring any person who engages in
12business as an operator under this Act to obtain a certificate
13of registration. Upon refusal or neglect to obey the order of
14the court, the court may compel obedience by proceedings for
15contempt.
16 Section 10-40. Valet services.
17 (a) Persons engaged in the business of providing valet
18services are subject to the tax imposed by this Act on the
19purchase price received in connection with their valet parking
20operations.
21 (b) Persons engaged in the business of providing valet
22services are entitled to take the credit in subsection (c) of
23Section 10-10.
24 (c) Tips received by persons parking cars for persons
25engaged in the business of providing valet services are not

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1subject to the tax imposed by this Act if the tips are retained
2by the person receiving the tip. If the tips are turned over to
3the valet business, the tips shall be included in the purchase
4price.
5 Section 10-45. Tax collected as debt owed to State. The tax
6herein required to be collected by any operator or valet
7business and any such tax collected by that person, shall
8constitute a debt owed by that person to this State.
9 Section 10-50. Incorporation by reference. All of the
10provisions of Sections 1, 2a, 2b, 3 (except provisions relating
11to transaction returns and except for provisions that are
12inconsistent with this Act), in respect to all provisions
13therein other than the State rate of tax) 4, 5, 5a, 5b, 5c, 5d,
145e, 5f, 5g, 5j, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and
1513 of the Retailers' Occupation Tax Act that are not
16inconsistent with this Act, and all provisions of the Uniform
17Penalty and Interest Act shall apply, as far as practicable, to
18the subject matter of this Act to the same extent as if such
19provisions were included in this Act.
20 Section 10-55. Deposit of proceeds from parking excise tax.
21The moneys received by the Department from the tax imposed by
22this Act shall be deposited into the Capital Projects Fund.

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1
Article 15. Amendatory Provisions
2 Section 15-5. The Illinois Administrative Procedure Act is
3amended by changing Section 5-45 as follows:
4 (5 ILCS 100/5-45) (from Ch. 127, par. 1005-45)
5 Sec. 5-45. Emergency rulemaking.
6 (a) "Emergency" means the existence of any situation that
7any agency finds reasonably constitutes a threat to the public
8interest, safety, or welfare.
9 (b) If any agency finds that an emergency exists that
10requires adoption of a rule upon fewer days than is required by
11Section 5-40 and states in writing its reasons for that
12finding, the agency may adopt an emergency rule without prior
13notice or hearing upon filing a notice of emergency rulemaking
14with the Secretary of State under Section 5-70. The notice
15shall include the text of the emergency rule and shall be
16published in the Illinois Register. Consent orders or other
17court orders adopting settlements negotiated by an agency may
18be adopted under this Section. Subject to applicable
19constitutional or statutory provisions, an emergency rule
20becomes effective immediately upon filing under Section 5-65 or
21at a stated date less than 10 days thereafter. The agency's
22finding and a statement of the specific reasons for the finding
23shall be filed with the rule. The agency shall take reasonable
24and appropriate measures to make emergency rules known to the

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1persons who may be affected by them.
2 (c) An emergency rule may be effective for a period of not
3longer than 150 days, but the agency's authority to adopt an
4identical rule under Section 5-40 is not precluded. No
5emergency rule may be adopted more than once in any 24-month
6period, except that this limitation on the number of emergency
7rules that may be adopted in a 24-month period does not apply
8to (i) emergency rules that make additions to and deletions
9from the Drug Manual under Section 5-5.16 of the Illinois
10Public Aid Code or the generic drug formulary under Section
113.14 of the Illinois Food, Drug and Cosmetic Act, (ii)
12emergency rules adopted by the Pollution Control Board before
13July 1, 1997 to implement portions of the Livestock Management
14Facilities Act, (iii) emergency rules adopted by the Illinois
15Department of Public Health under subsections (a) through (i)
16of Section 2 of the Department of Public Health Act when
17necessary to protect the public's health, (iv) emergency rules
18adopted pursuant to subsection (n) of this Section, (v)
19emergency rules adopted pursuant to subsection (o) of this
20Section, or (vi) emergency rules adopted pursuant to subsection
21(c-5) of this Section. Two or more emergency rules having
22substantially the same purpose and effect shall be deemed to be
23a single rule for purposes of this Section.
24 (c-5) To facilitate the maintenance of the program of group
25health benefits provided to annuitants, survivors, and retired
26employees under the State Employees Group Insurance Act of

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11971, rules to alter the contributions to be paid by the State,
2annuitants, survivors, retired employees, or any combination
3of those entities, for that program of group health benefits,
4shall be adopted as emergency rules. The adoption of those
5rules shall be considered an emergency and necessary for the
6public interest, safety, and welfare.
7 (d) In order to provide for the expeditious and timely
8implementation of the State's fiscal year 1999 budget,
9emergency rules to implement any provision of Public Act 90-587
10or 90-588 or any other budget initiative for fiscal year 1999
11may be adopted in accordance with this Section by the agency
12charged with administering that provision or initiative,
13except that the 24-month limitation on the adoption of
14emergency rules and the provisions of Sections 5-115 and 5-125
15do not apply to rules adopted under this subsection (d). The
16adoption of emergency rules authorized by this subsection (d)
17shall be deemed to be necessary for the public interest,
18safety, and welfare.
19 (e) In order to provide for the expeditious and timely
20implementation of the State's fiscal year 2000 budget,
21emergency rules to implement any provision of Public Act 91-24
22or any other budget initiative for fiscal year 2000 may be
23adopted in accordance with this Section by the agency charged
24with administering that provision or initiative, except that
25the 24-month limitation on the adoption of emergency rules and
26the provisions of Sections 5-115 and 5-125 do not apply to

SB0690 Enrolled- 24 -LRB101 04451 HLH 49459 b
1rules adopted under this subsection (e). The adoption of
2emergency rules authorized by this subsection (e) shall be
3deemed to be necessary for the public interest, safety, and
4welfare.
5 (f) In order to provide for the expeditious and timely
6implementation of the State's fiscal year 2001 budget,
7emergency rules to implement any provision of Public Act 91-712
8or any other budget initiative for fiscal year 2001 may be
9adopted in accordance with this Section by the agency charged
10with administering that provision or initiative, except that
11the 24-month limitation on the adoption of emergency rules and
12the provisions of Sections 5-115 and 5-125 do not apply to
13rules adopted under this subsection (f). The adoption of
14emergency rules authorized by this subsection (f) shall be
15deemed to be necessary for the public interest, safety, and
16welfare.
17 (g) In order to provide for the expeditious and timely
18implementation of the State's fiscal year 2002 budget,
19emergency rules to implement any provision of Public Act 92-10
20or any other budget initiative for fiscal year 2002 may be
21adopted in accordance with this Section by the agency charged
22with administering that provision or initiative, except that
23the 24-month limitation on the adoption of emergency rules and
24the provisions of Sections 5-115 and 5-125 do not apply to
25rules adopted under this subsection (g). The adoption of
26emergency rules authorized by this subsection (g) shall be

SB0690 Enrolled- 25 -LRB101 04451 HLH 49459 b
1deemed to be necessary for the public interest, safety, and
2welfare.
3 (h) In order to provide for the expeditious and timely
4implementation of the State's fiscal year 2003 budget,
5emergency rules to implement any provision of Public Act 92-597
6or any other budget initiative for fiscal year 2003 may be
7adopted in accordance with this Section by the agency charged
8with administering that provision or initiative, except that
9the 24-month limitation on the adoption of emergency rules and
10the provisions of Sections 5-115 and 5-125 do not apply to
11rules adopted under this subsection (h). The adoption of
12emergency rules authorized by this subsection (h) shall be
13deemed to be necessary for the public interest, safety, and
14welfare.
15 (i) In order to provide for the expeditious and timely
16implementation of the State's fiscal year 2004 budget,
17emergency rules to implement any provision of Public Act 93-20
18or any other budget initiative for fiscal year 2004 may be
19adopted in accordance with this Section by the agency charged
20with administering that provision or initiative, except that
21the 24-month limitation on the adoption of emergency rules and
22the provisions of Sections 5-115 and 5-125 do not apply to
23rules adopted under this subsection (i). The adoption of
24emergency rules authorized by this subsection (i) shall be
25deemed to be necessary for the public interest, safety, and
26welfare.

SB0690 Enrolled- 26 -LRB101 04451 HLH 49459 b
1 (j) In order to provide for the expeditious and timely
2implementation of the provisions of the State's fiscal year
32005 budget as provided under the Fiscal Year 2005 Budget
4Implementation (Human Services) Act, emergency rules to
5implement any provision of the Fiscal Year 2005 Budget
6Implementation (Human Services) Act may be adopted in
7accordance with this Section by the agency charged with
8administering that provision, except that the 24-month
9limitation on the adoption of emergency rules and the
10provisions of Sections 5-115 and 5-125 do not apply to rules
11adopted under this subsection (j). The Department of Public Aid
12may also adopt rules under this subsection (j) necessary to
13administer the Illinois Public Aid Code and the Children's
14Health Insurance Program Act. The adoption of emergency rules
15authorized by this subsection (j) shall be deemed to be
16necessary for the public interest, safety, and welfare.
17 (k) In order to provide for the expeditious and timely
18implementation of the provisions of the State's fiscal year
192006 budget, emergency rules to implement any provision of
20Public Act 94-48 or any other budget initiative for fiscal year
212006 may be adopted in accordance with this Section by the
22agency charged with administering that provision or
23initiative, except that the 24-month limitation on the adoption
24of emergency rules and the provisions of Sections 5-115 and
255-125 do not apply to rules adopted under this subsection (k).
26The Department of Healthcare and Family Services may also adopt

SB0690 Enrolled- 27 -LRB101 04451 HLH 49459 b
1rules under this subsection (k) necessary to administer the
2Illinois Public Aid Code, the Senior Citizens and Persons with
3Disabilities Property Tax Relief Act, the Senior Citizens and
4Disabled Persons Prescription Drug Discount Program Act (now
5the Illinois Prescription Drug Discount Program Act), and the
6Children's Health Insurance Program Act. The adoption of
7emergency rules authorized by this subsection (k) shall be
8deemed to be necessary for the public interest, safety, and
9welfare.
10 (l) In order to provide for the expeditious and timely
11implementation of the provisions of the State's fiscal year
122007 budget, the Department of Healthcare and Family Services
13may adopt emergency rules during fiscal year 2007, including
14rules effective July 1, 2007, in accordance with this
15subsection to the extent necessary to administer the
16Department's responsibilities with respect to amendments to
17the State plans and Illinois waivers approved by the federal
18Centers for Medicare and Medicaid Services necessitated by the
19requirements of Title XIX and Title XXI of the federal Social
20Security Act. The adoption of emergency rules authorized by
21this subsection (l) shall be deemed to be necessary for the
22public interest, safety, and welfare.
23 (m) In order to provide for the expeditious and timely
24implementation of the provisions of the State's fiscal year
252008 budget, the Department of Healthcare and Family Services
26may adopt emergency rules during fiscal year 2008, including

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1rules effective July 1, 2008, in accordance with this
2subsection to the extent necessary to administer the
3Department's responsibilities with respect to amendments to
4the State plans and Illinois waivers approved by the federal
5Centers for Medicare and Medicaid Services necessitated by the
6requirements of Title XIX and Title XXI of the federal Social
7Security Act. The adoption of emergency rules authorized by
8this subsection (m) shall be deemed to be necessary for the
9public interest, safety, and welfare.
10 (n) In order to provide for the expeditious and timely
11implementation of the provisions of the State's fiscal year
122010 budget, emergency rules to implement any provision of
13Public Act 96-45 or any other budget initiative authorized by
14the 96th General Assembly for fiscal year 2010 may be adopted
15in accordance with this Section by the agency charged with
16administering that provision or initiative. The adoption of
17emergency rules authorized by this subsection (n) shall be
18deemed to be necessary for the public interest, safety, and
19welfare. The rulemaking authority granted in this subsection
20(n) shall apply only to rules promulgated during Fiscal Year
212010.
22 (o) In order to provide for the expeditious and timely
23implementation of the provisions of the State's fiscal year
242011 budget, emergency rules to implement any provision of
25Public Act 96-958 or any other budget initiative authorized by
26the 96th General Assembly for fiscal year 2011 may be adopted

SB0690 Enrolled- 29 -LRB101 04451 HLH 49459 b
1in accordance with this Section by the agency charged with
2administering that provision or initiative. The adoption of
3emergency rules authorized by this subsection (o) is deemed to
4be necessary for the public interest, safety, and welfare. The
5rulemaking authority granted in this subsection (o) applies
6only to rules promulgated on or after July 1, 2010 (the
7effective date of Public Act 96-958) through June 30, 2011.
8 (p) In order to provide for the expeditious and timely
9implementation of the provisions of Public Act 97-689,
10emergency rules to implement any provision of Public Act 97-689
11may be adopted in accordance with this subsection (p) by the
12agency charged with administering that provision or
13initiative. The 150-day limitation of the effective period of
14emergency rules does not apply to rules adopted under this
15subsection (p), and the effective period may continue through
16June 30, 2013. The 24-month limitation on the adoption of
17emergency rules does not apply to rules adopted under this
18subsection (p). The adoption of emergency rules authorized by
19this subsection (p) is deemed to be necessary for the public
20interest, safety, and welfare.
21 (q) In order to provide for the expeditious and timely
22implementation of the provisions of Articles 7, 8, 9, 11, and
2312 of Public Act 98-104, emergency rules to implement any
24provision of Articles 7, 8, 9, 11, and 12 of Public Act 98-104
25may be adopted in accordance with this subsection (q) by the
26agency charged with administering that provision or

SB0690 Enrolled- 30 -LRB101 04451 HLH 49459 b
1initiative. The 24-month limitation on the adoption of
2emergency rules does not apply to rules adopted under this
3subsection (q). The adoption of emergency rules authorized by
4this subsection (q) is deemed to be necessary for the public
5interest, safety, and welfare.
6 (r) In order to provide for the expeditious and timely
7implementation of the provisions of Public Act 98-651,
8emergency rules to implement Public Act 98-651 may be adopted
9in accordance with this subsection (r) by the Department of
10Healthcare and Family Services. The 24-month limitation on the
11adoption of emergency rules does not apply to rules adopted
12under this subsection (r). The adoption of emergency rules
13authorized by this subsection (r) is deemed to be necessary for
14the public interest, safety, and welfare.
15 (s) In order to provide for the expeditious and timely
16implementation of the provisions of Sections 5-5b.1 and 5A-2 of
17the Illinois Public Aid Code, emergency rules to implement any
18provision of Section 5-5b.1 or Section 5A-2 of the Illinois
19Public Aid Code may be adopted in accordance with this
20subsection (s) by the Department of Healthcare and Family
21Services. The rulemaking authority granted in this subsection
22(s) shall apply only to those rules adopted prior to July 1,
232015. Notwithstanding any other provision of this Section, any
24emergency rule adopted under this subsection (s) shall only
25apply to payments made for State fiscal year 2015. The adoption
26of emergency rules authorized by this subsection (s) is deemed

SB0690 Enrolled- 31 -LRB101 04451 HLH 49459 b
1to be necessary for the public interest, safety, and welfare.
2 (t) In order to provide for the expeditious and timely
3implementation of the provisions of Article II of Public Act
499-6, emergency rules to implement the changes made by Article
5II of Public Act 99-6 to the Emergency Telephone System Act may
6be adopted in accordance with this subsection (t) by the
7Department of State Police. The rulemaking authority granted in
8this subsection (t) shall apply only to those rules adopted
9prior to July 1, 2016. The 24-month limitation on the adoption
10of emergency rules does not apply to rules adopted under this
11subsection (t). The adoption of emergency rules authorized by
12this subsection (t) is deemed to be necessary for the public
13interest, safety, and welfare.
14 (u) In order to provide for the expeditious and timely
15implementation of the provisions of the Burn Victims Relief
16Act, emergency rules to implement any provision of the Act may
17be adopted in accordance with this subsection (u) by the
18Department of Insurance. The rulemaking authority granted in
19this subsection (u) shall apply only to those rules adopted
20prior to December 31, 2015. The adoption of emergency rules
21authorized by this subsection (u) is deemed to be necessary for
22the public interest, safety, and welfare.
23 (v) In order to provide for the expeditious and timely
24implementation of the provisions of Public Act 99-516,
25emergency rules to implement Public Act 99-516 may be adopted
26in accordance with this subsection (v) by the Department of

SB0690 Enrolled- 32 -LRB101 04451 HLH 49459 b
1Healthcare and Family Services. The 24-month limitation on the
2adoption of emergency rules does not apply to rules adopted
3under this subsection (v). The adoption of emergency rules
4authorized by this subsection (v) is deemed to be necessary for
5the public interest, safety, and welfare.
6 (w) In order to provide for the expeditious and timely
7implementation of the provisions of Public Act 99-796,
8emergency rules to implement the changes made by Public Act
999-796 may be adopted in accordance with this subsection (w) by
10the Adjutant General. The adoption of emergency rules
11authorized by this subsection (w) is deemed to be necessary for
12the public interest, safety, and welfare.
13 (x) In order to provide for the expeditious and timely
14implementation of the provisions of Public Act 99-906,
15emergency rules to implement subsection (i) of Section 16-115D,
16subsection (g) of Section 16-128A, and subsection (a) of
17Section 16-128B of the Public Utilities Act may be adopted in
18accordance with this subsection (x) by the Illinois Commerce
19Commission. The rulemaking authority granted in this
20subsection (x) shall apply only to those rules adopted within
21180 days after June 1, 2017 (the effective date of Public Act
2299-906). The adoption of emergency rules authorized by this
23subsection (x) is deemed to be necessary for the public
24interest, safety, and welfare.
25 (y) In order to provide for the expeditious and timely
26implementation of the provisions of Public Act 100-23,

SB0690 Enrolled- 33 -LRB101 04451 HLH 49459 b
1emergency rules to implement the changes made by Public Act
2100-23 to Section 4.02 of the Illinois Act on the Aging,
3Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
4Section 55-30 of the Alcoholism and Other Drug Abuse and
5Dependency Act, and Sections 74 and 75 of the Mental Health and
6Developmental Disabilities Administrative Act may be adopted
7in accordance with this subsection (y) by the respective
8Department. The adoption of emergency rules authorized by this
9subsection (y) is deemed to be necessary for the public
10interest, safety, and welfare.
11 (z) In order to provide for the expeditious and timely
12implementation of the provisions of Public Act 100-554,
13emergency rules to implement the changes made by Public Act
14100-554 to Section 4.7 of the Lobbyist Registration Act may be
15adopted in accordance with this subsection (z) by the Secretary
16of State. The adoption of emergency rules authorized by this
17subsection (z) is deemed to be necessary for the public
18interest, safety, and welfare.
19 (aa) In order to provide for the expeditious and timely
20initial implementation of the changes made to Articles 5, 5A,
2112, and 14 of the Illinois Public Aid Code under the provisions
22of Public Act 100-581, the Department of Healthcare and Family
23Services may adopt emergency rules in accordance with this
24subsection (aa). The 24-month limitation on the adoption of
25emergency rules does not apply to rules to initially implement
26the changes made to Articles 5, 5A, 12, and 14 of the Illinois

SB0690 Enrolled- 34 -LRB101 04451 HLH 49459 b
1Public Aid Code adopted under this subsection (aa). The
2adoption of emergency rules authorized by this subsection (aa)
3is deemed to be necessary for the public interest, safety, and
4welfare.
5 (bb) In order to provide for the expeditious and timely
6implementation of the provisions of Public Act 100-587,
7emergency rules to implement the changes made by Public Act
8100-587 to Section 4.02 of the Illinois Act on the Aging,
9Sections 5.5.4 and 5-5.4i of the Illinois Public Aid Code,
10subsection (b) of Section 55-30 of the Alcoholism and Other
11Drug Abuse and Dependency Act, Section 5-104 of the Specialized
12Mental Health Rehabilitation Act of 2013, and Section 75 and
13subsection (b) of Section 74 of the Mental Health and
14Developmental Disabilities Administrative Act may be adopted
15in accordance with this subsection (bb) by the respective
16Department. The adoption of emergency rules authorized by this
17subsection (bb) is deemed to be necessary for the public
18interest, safety, and welfare.
19 (cc) In order to provide for the expeditious and timely
20implementation of the provisions of Public Act 100-587,
21emergency rules may be adopted in accordance with this
22subsection (cc) to implement the changes made by Public Act
23100-587 to: Sections 14-147.5 and 14-147.6 of the Illinois
24Pension Code by the Board created under Article 14 of the Code;
25Sections 15-185.5 and 15-185.6 of the Illinois Pension Code by
26the Board created under Article 15 of the Code; and Sections

SB0690 Enrolled- 35 -LRB101 04451 HLH 49459 b
116-190.5 and 16-190.6 of the Illinois Pension Code by the Board
2created under Article 16 of the Code. The adoption of emergency
3rules authorized by this subsection (cc) is deemed to be
4necessary for the public interest, safety, and welfare.
5 (dd) In order to provide for the expeditious and timely
6implementation of the provisions of Public Act 100-864,
7emergency rules to implement the changes made by Public Act
8100-864 to Section 3.35 of the Newborn Metabolic Screening Act
9may be adopted in accordance with this subsection (dd) by the
10Secretary of State. The adoption of emergency rules authorized
11by this subsection (dd) is deemed to be necessary for the
12public interest, safety, and welfare.
13 (ee) In order to provide for the expeditious and timely
14implementation of the provisions of Public Act 100-1172 this
15amendatory Act of the 100th General Assembly, emergency rules
16implementing the Illinois Underground Natural Gas Storage
17Safety Act may be adopted in accordance with this subsection by
18the Department of Natural Resources. The adoption of emergency
19rules authorized by this subsection is deemed to be necessary
20for the public interest, safety, and welfare.
21 (ff) (ee) In order to provide for the expeditious and
22timely initial implementation of the changes made to Articles
235A and 14 of the Illinois Public Aid Code under the provisions
24of Public Act 100-1181 this amendatory Act of the 100th General
25Assembly, the Department of Healthcare and Family Services may
26on a one-time-only basis adopt emergency rules in accordance

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1with this subsection (ff) (ee). The 24-month limitation on the
2adoption of emergency rules does not apply to rules to
3initially implement the changes made to Articles 5A and 14 of
4the Illinois Public Aid Code adopted under this subsection (ff)
5(ee). The adoption of emergency rules authorized by this
6subsection (ff) (ee) is deemed to be necessary for the public
7interest, safety, and welfare.
8 (gg) (ff) In order to provide for the expeditious and
9timely implementation of the provisions of Public Act 101-1
10this amendatory Act of the 101st General Assembly, emergency
11rules may be adopted by the Department of Labor in accordance
12with this subsection (gg) (ff) to implement the changes made by
13Public Act 101-1 this amendatory Act of the 101st General
14Assembly to the Minimum Wage Law. The adoption of emergency
15rules authorized by this subsection (gg) (ff) is deemed to be
16necessary for the public interest, safety, and welfare.
17 (hh) In order to provide for the expeditious and timely
18implementation of the provisions of the Leveling the Playing
19Field for Illinois Retail Act, emergency rules may be adopted
20in accordance with this subsection (hh) to implement the
21changes made by the Leveling the Playing Field for Illinois
22Retail Act. The adoption of emergency rules authorized by this
23subsection (hh) is deemed to be necessary for the public
24interest, safety, and welfare.
25(Source: P.A. 100-23, eff. 7-6-17; 100-554, eff. 11-16-17;
26100-581, eff. 3-12-18; 100-587, Article 95, Section 95-5, eff.

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16-4-18; 100-587, Article 110, Section 110-5, eff. 6-4-18;
2100-864, eff. 8-14-18; 100-1172, eff. 1-4-19; 100-1181, eff.
33-8-19; 101-1, eff. 2-19-19; revised 4-2-19.)
4 Section 15-10. The Department of Commerce and Economic
5Opportunity Law of the Civil Administrative Code of Illinois is
6amended by adding Section 605-1025 as follows:
7 (20 ILCS 605/605-1025 new)
8 Sec. 605-1025. Data center investment.
9 (a) The Department shall issue certificates of exemption
10from the Retailers' Occupation Tax Act, the Use Tax Act, the
11Service Use Tax Act, and the Service Occupation Tax Act, all
12locally-imposed retailers' occupation taxes administered and
13collected by the Department, the Chicago non-titled Use Tax,
14the Electricity Excise Tax Act, and a credit certification
15against the taxes imposed under subsections (a) and (b) of
16Section 201 of the Illinois Income Tax Act to qualifying
17Illinois data centers.
18 (b) For taxable years beginning on or after January 1,
192019, the Department shall award credits against the taxes
20imposed under subsections (a) and (b) of Section 201 of the
21Illinois Income Tax Act as provided in Section 229 of the
22Illinois Income Tax Act.
23 (c) For purposes of this Section:
24 "Data center" means a facility: (1) whose primary

SB0690 Enrolled- 38 -LRB101 04451 HLH 49459 b
1 services are the storage, management, and processing of
2 digital data; and (2) that is used to house (i) computer
3 and network systems, including associated components such
4 as servers, network equipment and appliances,
5 telecommunications, and data storage systems, (ii) systems
6 for monitoring and managing infrastructure performance,
7 (iii) Internet-related equipment and services, (iv) data
8 communications connections, (v) environmental controls,
9 (vi) fire protection systems, and (vii) security systems
10 and services.
11 "Qualifying Illinois data center" means a new or
12 existing data center that:
13 (1) is located in the State of Illinois;
14 (2) in the case of an existing data center, made a
15 capital investment of at least $250,000,000
16 collectively by the data center operator and the
17 tenants of all of its data centers over the 60-month
18 period immediately prior to January 1, 2020 or
19 committed to make a capital investment of at least
20 $250,000,000 over a 60-month period commencing before
21 January 1, 2020 and ending after January 1, 2020; or
22 (3) in the case of a new data center, makes a
23 capital investment of at least $250,000,000 over a
24 60-month period; and
25 (4) in the case of both existing and new data
26 centers, results in the creation of at least 20

SB0690 Enrolled- 39 -LRB101 04451 HLH 49459 b
1 full-time or full-time equivalent new jobs over a
2 period of 60 months by the data center operator and the
3 tenants of the data center, collectively, associated
4 with the operation or maintenance of the data center;
5 those jobs must have a total compensation equal to or
6 greater than 120% of the median wage paid to full-time
7 employees in the county where the data center is
8 located, as determined by the U.S. Bureau of Labor
9 Statistics; and
10 (5) is carbon neutral or attains certification
11 under one or more of the following green building
12 standards:
13 (A) BREEAM for New Construction or BREEAM
14 In-Use;
15 (B) ENERGY STAR;
16 (C) Envision;
17 (D) ISO 50001-energy management;
18 (E) LEED for Building Design and Construction
19 or LEED for Operations and Maintenance;
20 (F) Green Globes for New Construction or Green
21 Globes for Existing Buildings;
22 (G) UL 3223; or
23 (H) an equivalent program approved by the
24 Department of Commerce and Economic Opportunity.
25 "Full-time equivalent job" means a job in which the new
26 employee works for the owner, operator, contractor, or

SB0690 Enrolled- 40 -LRB101 04451 HLH 49459 b
1 tenant of a data center or for a corporation under contract
2 with the owner, operator or tenant of a data center at a
3 rate of at least 35 hours per week. An owner, operator or
4 tenant who employs labor or services at a specific site or
5 facility under contract with another may declare one
6 full-time, permanent job for every 1,820 man hours worked
7 per year under that contract. Vacations, paid holidays, and
8 sick time are included in this computation. Overtime is not
9 considered a part of regular hours.
10 "Qualified tangible personal property" means:
11 electrical systems and equipment; climate control and
12 chilling equipment and systems; mechanical systems and
13 equipment; monitoring and secure systems; emergency
14 generators; hardware; computers; servers; data storage
15 devices; network connectivity equipment; racks; cabinets;
16 telecommunications cabling infrastructure; raised floor
17 systems; peripheral components or systems; software;
18 mechanical, electrical, or plumbing systems; battery
19 systems; cooling systems and towers; temperature control
20 systems; other cabling; and other data center
21 infrastructure equipment and systems necessary to operate
22 qualified tangible personal property, including fixtures;
23 and component parts of any of the foregoing, including
24 installation, maintenance, repair, refurbishment, and
25 replacement of qualified tangible personal property to
26 generate, transform, transmit, distribute, or manage

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1 electricity necessary to operate qualified tangible
2 personal property; and all other tangible personal
3 property that is essential to the operations of a computer
4 data center. "Qualified tangible personal property" also
5 includes building materials physically incorporated in to
6 the qualifying data center.
7 To document the exemption allowed under this Section, the
8retailer must obtain from the purchaser a copy of the
9certificate of eligibility issued by the Department.
10 (d) New and existing data centers seeking a certificate of
11exemption for new or existing facilities shall apply to the
12Department in the manner specified by the Department. The
13Department shall determine the duration of the certificate of
14exemption awarded under this Act. The duration of the
15certificate of exemption may not exceed 20 calendar years. The
16Department and any data center seeking the exemption, including
17a data center operator on behalf of itself and its tenants,
18must enter into a memorandum of understanding that at a minimum
19provides:
20 (1) the details for determining the amount of capital
21 investment to be made;
22 (2) the number of new jobs created;
23 (3) the timeline for achieving the capital investment
24 and new job goals;
25 (4) the repayment obligation should those goals not be
26 achieved and any conditions under which repayment by the

SB0690 Enrolled- 42 -LRB101 04451 HLH 49459 b
1 qualifying data center or data center tenant claiming the
2 exemption will be required;
3 (5) the duration of the exemption; and
4 (6) other provisions as deemed necessary by the
5 Department.
6 (e) Beginning July 1, 2021, and each year thereafter, the
7Department shall annually report to the Governor and the
8General Assembly on the outcomes and effectiveness of this
9amendatory Act of the 101st General Assembly that shall include
10the following:
11 (1) the name of each recipient business;
12 (2) the location of the project;
13 (3) the estimated value of the credit;
14 (4) the number of new jobs and, if applicable, retained
15 jobs pledged as a result of the project; and
16 (5) whether or not the project is located in an
17 underserved area.
18 (f) New and existing data centers seeking a certificate of
19exemption related to the rehabilitation or construction of data
20centers in the State shall require the contractor and all
21subcontractors to comply with the requirements of Section 30-22
22of the Illinois Procurement Code as they apply to responsible
23bidders and to present satisfactory evidence of that compliance
24to the Department.
25 (g) New and existing data centers seeking a certificate of
26exemption for the rehabilitation or construction of data

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1centers in the State shall require the contractor to enter into
2a project labor agreement approved by the Department.
3 (h) Any qualifying data center issued a certificate of
4exemption under this Section must annually report to the
5Department the total data center tax benefits that are received
6by the business. Reports are due no later than May 31 of each
7year and shall cover the previous calendar year. The first
8report is for the 2019 calendar year and is due no later than
9May 31, 2020.
10 To the extent that a business issued a certificate of
11exemption under this Section has obtained an Enterprise Zone
12Building Materials Exemption Certificate or a High Impact
13Business Building Materials Exemption Certificate, no
14additional reporting for those building materials exemption
15benefits is required under this Section.
16 Failure to file a report under this subsection (h) may
17result in suspension or revocation of the certificate of
18exemption. The Department shall adopt rules governing
19suspension or revocation of the certificate of exemption,
20including the length of suspension. Factors to be considered in
21determining whether a data center certificate of exemption
22shall be suspended or revoked include, but are not limited to,
23prior compliance with the reporting requirements, cooperation
24in discontinuing and correcting violations, the extent of the
25violation, and whether the violation was willful or
26inadvertent.

SB0690 Enrolled- 44 -LRB101 04451 HLH 49459 b
1 (i) The Department shall not issue any new certificates of
2exemption under the provisions of this Section after July 1,
32029. This sunset shall not affect any existing certificates of
4exemption in effect on July 1, 2029.
5 Section 15-20. The State Finance Act is amended by adding
6Sections 5.891, 5.893, and 5.894 as follows:
7 (30 ILCS 105/5.891 new)
8 Sec. 5.891. The Transportation Renewal Fund.
9 (30 ILCS 105/5.893 new)
10 Sec. 5.893. The Regional Transportation Authority Capital
11Improvement Fund.
12 (30 ILCS 105/5.894 new)
13 Sec. 5.894. The Downstate Mass Transportation Capital
14Improvement Fund.
15 Section 15-25. The Illinois Income Tax Act is amended by
16adding Section 229 as follows:
17 (35 ILCS 5/229 new)
18 Sec. 229. Data center construction employment tax credit.
19 (a) A taxpayer who has been awarded a credit by the
20Department of Commerce and Economic Opportunity under Section

SB0690 Enrolled- 45 -LRB101 04451 HLH 49459 b
1605-1025 of the Department of Commerce and Economic Opportunity
2Law of the Civil Administrative Code of Illinois is entitled to
3a credit against the taxes imposed under subsections (a) and
4(b) of Section 201 of this Act. The amount of the credit shall
5be 20% of the wages paid during the taxable year to a full-time
6or part-time employee of a construction contractor employed by
7a certified data center if those wages are paid for the
8construction of a new data center in a geographic area that
9meets any one of the following criteria:
10 (1) the area has a poverty rate of at least 20%,
11 according to the latest federal decennial census;
12 (2) 75% or more of the children in the area participate
13 in the federal free lunch program, according to reported
14 statistics from the State Board of Education;
15 (3) 20% or more of the households in the area receive
16 assistance under the Supplemental Nutrition Assistance
17 Program (SNAP); or
18 (4) the area has an average unemployment rate, as
19 determined by the Department of Employment Security, that
20 is more than 120% of the national unemployment average, as
21 determined by the U.S. Department of Labor, for a period of
22 at least 2 consecutive calendar years preceding the date of
23 the application.
24 If the taxpayer is a partnership, a Subchapter S
25corporation, or a limited liability company that has elected
26partnership tax treatment, the credit shall be allowed to the

SB0690 Enrolled- 46 -LRB101 04451 HLH 49459 b
1partners, shareholders, or members in accordance with the
2determination of income and distributive share of income under
3Sections 702 and 704 and subchapter S of the Internal Revenue
4Code, as applicable. The Department, in cooperation with the
5Department of Commerce and Economic Opportunity, shall adopt
6rules to enforce and administer this Section. This Section is
7exempt from the provisions of Section 250 of this Act.
8 (b) In no event shall a credit under this Section reduce
9the taxpayer's liability to less than zero. If the amount of
10the credit exceeds the tax liability for the year, the excess
11may be carried forward and applied to the tax liability of the
125 taxable years following the excess credit year. The tax
13credit shall be applied to the earliest year for which there is
14a tax liability. If there are credits for more than one year
15that are available to offset a liability, the earlier credit
16shall be applied first.
17 (c) No credit shall be allowed with respect to any
18certification for any taxable year ending after the revocation
19of the certification by the Department of Commerce and Economic
20Opportunity. Upon receiving notification by the Department of
21Commerce and Economic Opportunity of the revocation of
22certification, the Department shall notify the taxpayer that no
23credit is allowed for any taxable year ending after the
24revocation date, as stated in such notification. If any credit
25has been allowed with respect to a certification for a taxable
26year ending after the revocation date, any refund paid to the

SB0690 Enrolled- 47 -LRB101 04451 HLH 49459 b
1taxpayer for that taxable year shall, to the extent of that
2credit allowed, be an erroneous refund within the meaning of
3Section 912 of this Act.
4 Section 15-30. The Use Tax Act is amended by changing
5Sections 2 and 3-5 as follows:
6 (35 ILCS 105/2) (from Ch. 120, par. 439.2)
7 Sec. 2. Definitions.
8 "Use" means the exercise by any person of any right or
9power over tangible personal property incident to the ownership
10of that property, except that it does not include the sale of
11such property in any form as tangible personal property in the
12regular course of business to the extent that such property is
13not first subjected to a use for which it was purchased, and
14does not include the use of such property by its owner for
15demonstration purposes: Provided that the property purchased
16is deemed to be purchased for the purpose of resale, despite
17first being used, to the extent to which it is resold as an
18ingredient of an intentionally produced product or by-product
19of manufacturing. "Use" does not mean the demonstration use or
20interim use of tangible personal property by a retailer before
21he sells that tangible personal property. For watercraft or
22aircraft, if the period of demonstration use or interim use by
23the retailer exceeds 18 months, the retailer shall pay on the
24retailers' original cost price the tax imposed by this Act, and

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1no credit for that tax is permitted if the watercraft or
2aircraft is subsequently sold by the retailer. "Use" does not
3mean the physical incorporation of tangible personal property,
4to the extent not first subjected to a use for which it was
5purchased, as an ingredient or constituent, into other tangible
6personal property (a) which is sold in the regular course of
7business or (b) which the person incorporating such ingredient
8or constituent therein has undertaken at the time of such
9purchase to cause to be transported in interstate commerce to
10destinations outside the State of Illinois: Provided that the
11property purchased is deemed to be purchased for the purpose of
12resale, despite first being used, to the extent to which it is
13resold as an ingredient of an intentionally produced product or
14by-product of manufacturing.
15 "Watercraft" means a Class 2, Class 3, or Class 4
16watercraft as defined in Section 3-2 of the Boat Registration
17and Safety Act, a personal watercraft, or any boat equipped
18with an inboard motor.
19 "Purchase at retail" means the acquisition of the ownership
20of or title to tangible personal property through a sale at
21retail.
22 "Purchaser" means anyone who, through a sale at retail,
23acquires the ownership of tangible personal property for a
24valuable consideration.
25 "Sale at retail" means any transfer of the ownership of or
26title to tangible personal property to a purchaser, for the

SB0690 Enrolled- 49 -LRB101 04451 HLH 49459 b
1purpose of use, and not for the purpose of resale in any form
2as tangible personal property to the extent not first subjected
3to a use for which it was purchased, for a valuable
4consideration: Provided that the property purchased is deemed
5to be purchased for the purpose of resale, despite first being
6used, to the extent to which it is resold as an ingredient of
7an intentionally produced product or by-product of
8manufacturing. For this purpose, slag produced as an incident
9to manufacturing pig iron or steel and sold is considered to be
10an intentionally produced by-product of manufacturing. "Sale
11at retail" includes any such transfer made for resale unless
12made in compliance with Section 2c of the Retailers' Occupation
13Tax Act, as incorporated by reference into Section 12 of this
14Act. Transactions whereby the possession of the property is
15transferred but the seller retains the title as security for
16payment of the selling price are sales.
17 "Sale at retail" shall also be construed to include any
18Illinois florist's sales transaction in which the purchase
19order is received in Illinois by a florist and the sale is for
20use or consumption, but the Illinois florist has a florist in
21another state deliver the property to the purchaser or the
22purchaser's donee in such other state.
23 Nonreusable tangible personal property that is used by
24persons engaged in the business of operating a restaurant,
25cafeteria, or drive-in is a sale for resale when it is
26transferred to customers in the ordinary course of business as

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1part of the sale of food or beverages and is used to deliver,
2package, or consume food or beverages, regardless of where
3consumption of the food or beverages occurs. Examples of those
4items include, but are not limited to nonreusable, paper and
5plastic cups, plates, baskets, boxes, sleeves, buckets or other
6containers, utensils, straws, placemats, napkins, doggie bags,
7and wrapping or packaging materials that are transferred to
8customers as part of the sale of food or beverages in the
9ordinary course of business.
10 The purchase, employment and transfer of such tangible
11personal property as newsprint and ink for the primary purpose
12of conveying news (with or without other information) is not a
13purchase, use or sale of tangible personal property.
14 "Selling price" means the consideration for a sale valued
15in money whether received in money or otherwise, including
16cash, credits, property other than as hereinafter provided, and
17services, but, prior to January 1, 2020, not including the
18value of or credit given for traded-in tangible personal
19property where the item that is traded-in is of like kind and
20character as that which is being sold; beginning January 1,
212020, "selling price" includes the portion of the value of or
22credit given for traded-in motor vehicles of the First Division
23as defined in Section 1-146 of the Illinois Vehicle Code of
24like kind and character as that which is being sold that
25exceeds $10,000. "Selling price" , and shall be determined
26without any deduction on account of the cost of the property

SB0690 Enrolled- 51 -LRB101 04451 HLH 49459 b
1sold, the cost of materials used, labor or service cost or any
2other expense whatsoever, but does not include interest or
3finance charges which appear as separate items on the bill of
4sale or sales contract nor charges that are added to prices by
5sellers on account of the seller's tax liability under the
6"Retailers' Occupation Tax Act", or on account of the seller's
7duty to collect, from the purchaser, the tax that is imposed by
8this Act, or, except as otherwise provided with respect to any
9cigarette tax imposed by a home rule unit, on account of the
10seller's tax liability under any local occupation tax
11administered by the Department, or, except as otherwise
12provided with respect to any cigarette tax imposed by a home
13rule unit on account of the seller's duty to collect, from the
14purchasers, the tax that is imposed under any local use tax
15administered by the Department. Effective December 1, 1985,
16"selling price" shall include charges that are added to prices
17by sellers on account of the seller's tax liability under the
18Cigarette Tax Act, on account of the seller's duty to collect,
19from the purchaser, the tax imposed under the Cigarette Use Tax
20Act, and on account of the seller's duty to collect, from the
21purchaser, any cigarette tax imposed by a home rule unit.
22 Notwithstanding any law to the contrary, for any motor
23vehicle, as defined in Section 1-146 of the Vehicle Code, that
24is sold on or after January 1, 2015 for the purpose of leasing
25the vehicle for a defined period that is longer than one year
26and (1) is a motor vehicle of the second division that: (A) is

SB0690 Enrolled- 52 -LRB101 04451 HLH 49459 b
1a self-contained motor vehicle designed or permanently
2converted to provide living quarters for recreational,
3camping, or travel use, with direct walk through access to the
4living quarters from the driver's seat; (B) is of the van
5configuration designed for the transportation of not less than
67 nor more than 16 passengers; or (C) has a gross vehicle
7weight rating of 8,000 pounds or less or (2) is a motor vehicle
8of the first division, "selling price" or "amount of sale"
9means the consideration received by the lessor pursuant to the
10lease contract, including amounts due at lease signing and all
11monthly or other regular payments charged over the term of the
12lease. Also included in the selling price is any amount
13received by the lessor from the lessee for the leased vehicle
14that is not calculated at the time the lease is executed,
15including, but not limited to, excess mileage charges and
16charges for excess wear and tear. For sales that occur in
17Illinois, with respect to any amount received by the lessor
18from the lessee for the leased vehicle that is not calculated
19at the time the lease is executed, the lessor who purchased the
20motor vehicle does not incur the tax imposed by the Use Tax Act
21on those amounts, and the retailer who makes the retail sale of
22the motor vehicle to the lessor is not required to collect the
23tax imposed by this Act or to pay the tax imposed by the
24Retailers' Occupation Tax Act on those amounts. However, the
25lessor who purchased the motor vehicle assumes the liability
26for reporting and paying the tax on those amounts directly to

SB0690 Enrolled- 53 -LRB101 04451 HLH 49459 b
1the Department in the same form (Illinois Retailers' Occupation
2Tax, and local retailers' occupation taxes, if applicable) in
3which the retailer would have reported and paid such tax if the
4retailer had accounted for the tax to the Department. For
5amounts received by the lessor from the lessee that are not
6calculated at the time the lease is executed, the lessor must
7file the return and pay the tax to the Department by the due
8date otherwise required by this Act for returns other than
9transaction returns. If the retailer is entitled under this Act
10to a discount for collecting and remitting the tax imposed
11under this Act to the Department with respect to the sale of
12the motor vehicle to the lessor, then the right to the discount
13provided in this Act shall be transferred to the lessor with
14respect to the tax paid by the lessor for any amount received
15by the lessor from the lessee for the leased vehicle that is
16not calculated at the time the lease is executed; provided that
17the discount is only allowed if the return is timely filed and
18for amounts timely paid. The "selling price" of a motor vehicle
19that is sold on or after January 1, 2015 for the purpose of
20leasing for a defined period of longer than one year shall not
21be reduced by the value of or credit given for traded-in
22tangible personal property owned by the lessor, nor shall it be
23reduced by the value of or credit given for traded-in tangible
24personal property owned by the lessee, regardless of whether
25the trade-in value thereof is assigned by the lessee to the
26lessor. In the case of a motor vehicle that is sold for the

SB0690 Enrolled- 54 -LRB101 04451 HLH 49459 b
1purpose of leasing for a defined period of longer than one
2year, the sale occurs at the time of the delivery of the
3vehicle, regardless of the due date of any lease payments. A
4lessor who incurs a Retailers' Occupation Tax liability on the
5sale of a motor vehicle coming off lease may not take a credit
6against that liability for the Use Tax the lessor paid upon the
7purchase of the motor vehicle (or for any tax the lessor paid
8with respect to any amount received by the lessor from the
9lessee for the leased vehicle that was not calculated at the
10time the lease was executed) if the selling price of the motor
11vehicle at the time of purchase was calculated using the
12definition of "selling price" as defined in this paragraph.
13Notwithstanding any other provision of this Act to the
14contrary, lessors shall file all returns and make all payments
15required under this paragraph to the Department by electronic
16means in the manner and form as required by the Department.
17This paragraph does not apply to leases of motor vehicles for
18which, at the time the lease is entered into, the term of the
19lease is not a defined period, including leases with a defined
20initial period with the option to continue the lease on a
21month-to-month or other basis beyond the initial defined
22period.
23 The phrase "like kind and character" shall be liberally
24construed (including but not limited to any form of motor
25vehicle for any form of motor vehicle, or any kind of farm or
26agricultural implement for any other kind of farm or

SB0690 Enrolled- 55 -LRB101 04451 HLH 49459 b
1agricultural implement), while not including a kind of item
2which, if sold at retail by that retailer, would be exempt from
3retailers' occupation tax and use tax as an isolated or
4occasional sale.
5 "Department" means the Department of Revenue.
6 "Person" means any natural individual, firm, partnership,
7association, joint stock company, joint adventure, public or
8private corporation, limited liability company, or a receiver,
9executor, trustee, guardian or other representative appointed
10by order of any court.
11 "Retailer" means and includes every person engaged in the
12business of making sales at retail as defined in this Section.
13 A person who holds himself or herself out as being engaged
14(or who habitually engages) in selling tangible personal
15property at retail is a retailer hereunder with respect to such
16sales (and not primarily in a service occupation)
17notwithstanding the fact that such person designs and produces
18such tangible personal property on special order for the
19purchaser and in such a way as to render the property of value
20only to such purchaser, if such tangible personal property so
21produced on special order serves substantially the same
22function as stock or standard items of tangible personal
23property that are sold at retail.
24 A person whose activities are organized and conducted
25primarily as a not-for-profit service enterprise, and who
26engages in selling tangible personal property at retail

SB0690 Enrolled- 56 -LRB101 04451 HLH 49459 b
1(whether to the public or merely to members and their guests)
2is a retailer with respect to such transactions, excepting only
3a person organized and operated exclusively for charitable,
4religious or educational purposes either (1), to the extent of
5sales by such person to its members, students, patients or
6inmates of tangible personal property to be used primarily for
7the purposes of such person, or (2), to the extent of sales by
8such person of tangible personal property which is not sold or
9offered for sale by persons organized for profit. The selling
10of school books and school supplies by schools at retail to
11students is not "primarily for the purposes of" the school
12which does such selling. This paragraph does not apply to nor
13subject to taxation occasional dinners, social or similar
14activities of a person organized and operated exclusively for
15charitable, religious or educational purposes, whether or not
16such activities are open to the public.
17 A person who is the recipient of a grant or contract under
18Title VII of the Older Americans Act of 1965 (P.L. 92-258) and
19serves meals to participants in the federal Nutrition Program
20for the Elderly in return for contributions established in
21amount by the individual participant pursuant to a schedule of
22suggested fees as provided for in the federal Act is not a
23retailer under this Act with respect to such transactions.
24 Persons who engage in the business of transferring tangible
25personal property upon the redemption of trading stamps are
26retailers hereunder when engaged in such business.

SB0690 Enrolled- 57 -LRB101 04451 HLH 49459 b
1 The isolated or occasional sale of tangible personal
2property at retail by a person who does not hold himself out as
3being engaged (or who does not habitually engage) in selling
4such tangible personal property at retail or a sale through a
5bulk vending machine does not make such person a retailer
6hereunder. However, any person who is engaged in a business
7which is not subject to the tax imposed by the "Retailers'
8Occupation Tax Act" because of involving the sale of or a
9contract to sell real estate or a construction contract to
10improve real estate, but who, in the course of conducting such
11business, transfers tangible personal property to users or
12consumers in the finished form in which it was purchased, and
13which does not become real estate, under any provision of a
14construction contract or real estate sale or real estate sales
15agreement entered into with some other person arising out of or
16because of such nontaxable business, is a retailer to the
17extent of the value of the tangible personal property so
18transferred. If, in such transaction, a separate charge is made
19for the tangible personal property so transferred, the value of
20such property, for the purposes of this Act, is the amount so
21separately charged, but not less than the cost of such property
22to the transferor; if no separate charge is made, the value of
23such property, for the purposes of this Act, is the cost to the
24transferor of such tangible personal property.
25 "Retailer maintaining a place of business in this State",
26or any like term, means and includes any of the following

SB0690 Enrolled- 58 -LRB101 04451 HLH 49459 b
1retailers:
2 (1) A retailer having or maintaining within this State,
3 directly or by a subsidiary, an office, distribution house,
4 sales house, warehouse or other place of business, or any
5 agent or other representative operating within this State
6 under the authority of the retailer or its subsidiary,
7 irrespective of whether such place of business or agent or
8 other representative is located here permanently or
9 temporarily, or whether such retailer or subsidiary is
10 licensed to do business in this State. However, the
11 ownership of property that is located at the premises of a
12 printer with which the retailer has contracted for printing
13 and that consists of the final printed product, property
14 that becomes a part of the final printed product, or copy
15 from which the printed product is produced shall not result
16 in the retailer being deemed to have or maintain an office,
17 distribution house, sales house, warehouse, or other place
18 of business within this State.
19 (1.1) (Blank). A retailer having a contract with a
20 person located in this State under which the person, for a
21 commission or other consideration based upon the sale of
22 tangible personal property by the retailer, directly or
23 indirectly refers potential customers to the retailer by
24 providing to the potential customers a promotional code or
25 other mechanism that allows the retailer to track purchases
26 referred by such persons. Examples of mechanisms that allow

SB0690 Enrolled- 59 -LRB101 04451 HLH 49459 b
1 the retailer to track purchases referred by such persons
2 include but are not limited to the use of a link on the
3 person's Internet website, promotional codes distributed
4 through the person's hand-delivered or mailed material,
5 and promotional codes distributed by the person through
6 radio or other broadcast media. The provisions of this
7 paragraph (1.1) shall apply only if the cumulative gross
8 receipts from sales of tangible personal property by the
9 retailer to customers who are referred to the retailer by
10 all persons in this State under such contracts exceed
11 $10,000 during the preceding 4 quarterly periods ending on
12 the last day of March, June, September, and December. A
13 retailer meeting the requirements of this paragraph (1.1)
14 shall be presumed to be maintaining a place of business in
15 this State but may rebut this presumption by submitting
16 proof that the referrals or other activities pursued within
17 this State by such persons were not sufficient to meet the
18 nexus standards of the United States Constitution during
19 the preceding 4 quarterly periods.
20 (1.2) (Blank). Beginning July 1, 2011, a retailer
21 having a contract with a person located in this State under
22 which:
23 (A) the retailer sells the same or substantially
24 similar line of products as the person located in this
25 State and does so using an identical or substantially
26 similar name, trade name, or trademark as the person

SB0690 Enrolled- 60 -LRB101 04451 HLH 49459 b
1 located in this State; and
2 (B) the retailer provides a commission or other
3 consideration to the person located in this State based
4 upon the sale of tangible personal property by the
5 retailer.
6 The provisions of this paragraph (1.2) shall apply only if
7 the cumulative gross receipts from sales of tangible
8 personal property by the retailer to customers in this
9 State under all such contracts exceed $10,000 during the
10 preceding 4 quarterly periods ending on the last day of
11 March, June, September, and December.
12 (2) (Blank). A retailer soliciting orders for tangible
13 personal property by means of a telecommunication or
14 television shopping system (which utilizes toll free
15 numbers) which is intended by the retailer to be broadcast
16 by cable television or other means of broadcasting, to
17 consumers located in this State.
18 (3) (Blank). A retailer, pursuant to a contract with a
19 broadcaster or publisher located in this State, soliciting
20 orders for tangible personal property by means of
21 advertising which is disseminated primarily to consumers
22 located in this State and only secondarily to bordering
23 jurisdictions.
24 (4) (Blank). A retailer soliciting orders for tangible
25 personal property by mail if the solicitations are
26 substantial and recurring and if the retailer benefits from

SB0690 Enrolled- 61 -LRB101 04451 HLH 49459 b
1 any banking, financing, debt collection,
2 telecommunication, or marketing activities occurring in
3 this State or benefits from the location in this State of
4 authorized installation, servicing, or repair facilities.
5 (5) (Blank). A retailer that is owned or controlled by
6 the same interests that own or control any retailer
7 engaging in business in the same or similar line of
8 business in this State.
9 (6) (Blank). A retailer having a franchisee or licensee
10 operating under its trade name if the franchisee or
11 licensee is required to collect the tax under this Section.
12 (7) (Blank). A retailer, pursuant to a contract with a
13 cable television operator located in this State,
14 soliciting orders for tangible personal property by means
15 of advertising which is transmitted or distributed over a
16 cable television system in this State.
17 (8) (Blank). A retailer engaging in activities in
18 Illinois, which activities in the state in which the retail
19 business engaging in such activities is located would
20 constitute maintaining a place of business in that state.
21 (9) Beginning October 1, 2018 through June 30, 2020, a
22 retailer making sales of tangible personal property to
23 purchasers in Illinois from outside of Illinois if:
24 (A) the cumulative gross receipts from sales of
25 tangible personal property to purchasers in Illinois
26 are $100,000 or more; or

SB0690 Enrolled- 62 -LRB101 04451 HLH 49459 b
1 (B) the retailer enters into 200 or more separate
2 transactions for the sale of tangible personal
3 property to purchasers in Illinois.
4 The retailer shall determine on a quarterly basis,
5 ending on the last day of March, June, September, and
6 December, whether he or she meets the criteria of either
7 subparagraph (A) or (B) of this paragraph (9) for the
8 preceding 12-month period. If the retailer meets the
9 criteria of either subparagraph (A) or (B) for a 12-month
10 period, he or she is considered a retailer maintaining a
11 place of business in this State and is required to collect
12 and remit the tax imposed under this Act and file returns
13 for one year. At the end of that one-year period, the
14 retailer shall determine whether the retailer met the
15 criteria of either subparagraph (A) or (B) during the
16 preceding 12-month period. If the retailer met the criteria
17 in either subparagraph (A) or (B) for the preceding
18 12-month period, he or she is considered a retailer
19 maintaining a place of business in this State and is
20 required to collect and remit the tax imposed under this
21 Act and file returns for the subsequent year. If at the end
22 of a one-year period a retailer that was required to
23 collect and remit the tax imposed under this Act determines
24 that he or she did not meet the criteria in either
25 subparagraph (A) or (B) during the preceding 12-month
26 period, the retailer shall subsequently determine on a

SB0690 Enrolled- 63 -LRB101 04451 HLH 49459 b
1 quarterly basis, ending on the last day of March, June,
2 September, and December, whether he or she meets the
3 criteria of either subparagraph (A) or (B) for the
4 preceding 12-month period.
5 "Bulk vending machine" means a vending machine, containing
6unsorted confections, nuts, toys, or other items designed
7primarily to be used or played with by children which, when a
8coin or coins of a denomination not larger than $0.50 are
9inserted, are dispensed in equal portions, at random and
10without selection by the customer.
11(Source: P.A. 99-78, eff. 7-20-15; 100-587, eff. 6-4-18.)
12 (35 ILCS 105/3-5)
13 Sec. 3-5. Exemptions. Use of the following tangible
14personal property is exempt from the tax imposed by this Act:
15 (1) Personal property purchased from a corporation,
16society, association, foundation, institution, or
17organization, other than a limited liability company, that is
18organized and operated as a not-for-profit service enterprise
19for the benefit of persons 65 years of age or older if the
20personal property was not purchased by the enterprise for the
21purpose of resale by the enterprise.
22 (2) Personal property purchased by a not-for-profit
23Illinois county fair association for use in conducting,
24operating, or promoting the county fair.
25 (3) Personal property purchased by a not-for-profit arts or

SB0690 Enrolled- 64 -LRB101 04451 HLH 49459 b
1cultural organization that establishes, by proof required by
2the Department by rule, that it has received an exemption under
3Section 501(c)(3) of the Internal Revenue Code and that is
4organized and operated primarily for the presentation or
5support of arts or cultural programming, activities, or
6services. These organizations include, but are not limited to,
7music and dramatic arts organizations such as symphony
8orchestras and theatrical groups, arts and cultural service
9organizations, local arts councils, visual arts organizations,
10and media arts organizations. On and after July 1, 2001 (the
11effective date of Public Act 92-35), however, an entity
12otherwise eligible for this exemption shall not make tax-free
13purchases unless it has an active identification number issued
14by the Department.
15 (4) Personal property purchased by a governmental body, by
16a corporation, society, association, foundation, or
17institution organized and operated exclusively for charitable,
18religious, or educational purposes, or by a not-for-profit
19corporation, society, association, foundation, institution, or
20organization that has no compensated officers or employees and
21that is organized and operated primarily for the recreation of
22persons 55 years of age or older. A limited liability company
23may qualify for the exemption under this paragraph only if the
24limited liability company is organized and operated
25exclusively for educational purposes. On and after July 1,
261987, however, no entity otherwise eligible for this exemption

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1shall make tax-free purchases unless it has an active exemption
2identification number issued by the Department.
3 (5) Until July 1, 2003, a passenger car that is a
4replacement vehicle to the extent that the purchase price of
5the car is subject to the Replacement Vehicle Tax.
6 (6) Until July 1, 2003 and beginning again on September 1,
72004 through August 30, 2014, graphic arts machinery and
8equipment, including repair and replacement parts, both new and
9used, and including that manufactured on special order,
10certified by the purchaser to be used primarily for graphic
11arts production, and including machinery and equipment
12purchased for lease. Equipment includes chemicals or chemicals
13acting as catalysts but only if the chemicals or chemicals
14acting as catalysts effect a direct and immediate change upon a
15graphic arts product. Beginning on July 1, 2017, graphic arts
16machinery and equipment is included in the manufacturing and
17assembling machinery and equipment exemption under paragraph
18(18).
19 (7) Farm chemicals.
20 (8) Legal tender, currency, medallions, or gold or silver
21coinage issued by the State of Illinois, the government of the
22United States of America, or the government of any foreign
23country, and bullion.
24 (9) Personal property purchased from a teacher-sponsored
25student organization affiliated with an elementary or
26secondary school located in Illinois.

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

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

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1origination to the city of final destination on the same
2aircraft, without regard to a change in the flight number of
3that aircraft.
4 (13) Proceeds of mandatory service charges separately
5stated on customers' bills for the purchase and consumption of
6food and beverages purchased at retail from a retailer, to the
7extent that the proceeds of the service charge are in fact
8turned over as tips or as a substitute for tips to the
9employees who participate directly in preparing, serving,
10hosting or cleaning up the food or beverage function with
11respect to which the service charge is imposed.
12 (14) Until July 1, 2003, oil field exploration, drilling,
13and production equipment, including (i) rigs and parts of rigs,
14rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
15tubular goods, including casing and drill strings, (iii) pumps
16and pump-jack units, (iv) storage tanks and flow lines, (v) any
17individual replacement part for oil field exploration,
18drilling, and production equipment, and (vi) machinery and
19equipment purchased for lease; but excluding motor vehicles
20required to be registered under the Illinois Vehicle Code.
21 (15) Photoprocessing machinery and equipment, including
22repair and replacement parts, both new and used, including that
23manufactured on special order, certified by the purchaser to be
24used primarily for photoprocessing, and including
25photoprocessing machinery and equipment purchased for lease.
26 (16) Until July 1, 2023, coal and aggregate exploration,

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1mining, off-highway hauling, processing, maintenance, and
2reclamation equipment, including replacement parts and
3equipment, and including equipment purchased for lease, but
4excluding motor vehicles required to be registered under the
5Illinois Vehicle Code. The changes made to this Section by
6Public Act 97-767 apply on and after July 1, 2003, but no claim
7for credit or refund is allowed on or after August 16, 2013
8(the effective date of Public Act 98-456) for such taxes paid
9during the period beginning July 1, 2003 and ending on August
1016, 2013 (the effective date of Public Act 98-456).
11 (17) Until July 1, 2003, distillation machinery and
12equipment, sold as a unit or kit, assembled or installed by the
13retailer, certified by the user to be used only for the
14production of ethyl alcohol that will be used for consumption
15as motor fuel or as a component of motor fuel for the personal
16use of the user, and not subject to sale or resale.
17 (18) Manufacturing and assembling machinery and equipment
18used primarily in the process of manufacturing or assembling
19tangible personal property for wholesale or retail sale or
20lease, whether that sale or lease is made directly by the
21manufacturer or by some other person, whether the materials
22used in the process are owned by the manufacturer or some other
23person, or whether that sale or lease is made apart from or as
24an incident to the seller's engaging in the service occupation
25of producing machines, tools, dies, jigs, patterns, gauges, or
26other similar items of no commercial value on special order for

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1a particular purchaser. The exemption provided by this
2paragraph (18) does not include machinery and equipment used in
3(i) the generation of electricity for wholesale or retail sale;
4(ii) the generation or treatment of natural or artificial gas
5for wholesale or retail sale that is delivered to customers
6through pipes, pipelines, or mains; or (iii) the treatment of
7water for wholesale or retail sale that is delivered to
8customers through pipes, pipelines, or mains. The provisions of
9Public Act 98-583 are declaratory of existing law as to the
10meaning and scope of this exemption. Beginning on July 1, 2017,
11the exemption provided by this paragraph (18) includes, but is
12not limited to, graphic arts machinery and equipment, as
13defined in paragraph (6) of this Section.
14 (19) Personal property delivered to a purchaser or
15purchaser's donee inside Illinois when the purchase order for
16that personal property was received by a florist located
17outside Illinois who has a florist located inside Illinois
18deliver the personal property.
19 (20) Semen used for artificial insemination of livestock
20for direct agricultural production.
21 (21) Horses, or interests in horses, registered with and
22meeting the requirements of any of the Arabian Horse Club
23Registry of America, Appaloosa Horse Club, American Quarter
24Horse Association, United States Trotting Association, or
25Jockey Club, as appropriate, used for purposes of breeding or
26racing for prizes. This item (21) is exempt from the provisions

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1of Section 3-90, and the exemption provided for under this item
2(21) applies for all periods beginning May 30, 1995, but no
3claim for credit or refund is allowed on or after January 1,
42008 for such taxes paid during the period beginning May 30,
52000 and ending on January 1, 2008.
6 (22) Computers and communications equipment utilized for
7any hospital purpose and equipment used in the diagnosis,
8analysis, or treatment of hospital patients purchased by a
9lessor who leases the equipment, under a lease of one year or
10longer executed or in effect at the time the lessor would
11otherwise be subject to the tax imposed by this Act, to a
12hospital that has been issued an active tax exemption
13identification number by the Department under Section 1g of the
14Retailers' Occupation Tax Act. If the equipment is leased in a
15manner that does not qualify for this exemption or is used in
16any other non-exempt 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 non-qualifying 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 have
25a legal right to claim a refund of that amount from the lessor.
26If, however, that amount is not refunded to the lessee for any

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

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1disaster area in Illinois or bordering Illinois by a
2manufacturer or retailer that is registered in this State to a
3corporation, society, association, foundation, or institution
4that has been issued a sales tax exemption identification
5number by the Department that assists victims of the disaster
6who reside within the declared disaster area.
7 (25) Beginning with taxable years ending on or after
8December 31, 1995 and ending with taxable years ending on or
9before December 31, 2004, personal property that is used in the
10performance of infrastructure repairs in this State, including
11but not limited to municipal roads and streets, access roads,
12bridges, sidewalks, waste disposal systems, water and sewer
13line extensions, water distribution and purification
14facilities, storm water drainage and retention facilities, and
15sewage treatment facilities, resulting from a State or
16federally declared disaster in Illinois or bordering Illinois
17when such repairs are initiated on facilities located in the
18declared disaster area within 6 months after the disaster.
19 (26) Beginning July 1, 1999, game or game birds purchased
20at a "game breeding and hunting preserve area" as that term is
21used in the Wildlife Code. This paragraph is exempt from the
22provisions of Section 3-90.
23 (27) A motor vehicle, as that term is defined in Section
241-146 of the Illinois Vehicle Code, that is donated to a
25corporation, limited liability company, society, association,
26foundation, or institution that is determined by the Department

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1to be organized and operated exclusively for educational
2purposes. For purposes of this exemption, "a corporation,
3limited liability company, society, association, foundation,
4or institution organized and operated exclusively for
5educational purposes" means all tax-supported public schools,
6private schools that offer systematic instruction in useful
7branches of learning by methods common to public schools and
8that compare favorably in their scope and intensity with the
9course of study presented in tax-supported schools, and
10vocational or technical schools or institutes organized and
11operated exclusively to provide a course of study of not less
12than 6 weeks duration and designed to prepare individuals to
13follow a trade or to pursue a manual, technical, mechanical,
14industrial, business, or commercial occupation.
15 (28) 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 3-90.
3 (29) 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 other
6items, and replacement parts for these machines. Beginning
7January 1, 2002 and through June 30, 2003, machines and parts
8for machines used in commercial, coin-operated amusement and
9vending business if a use or occupation tax is paid on the
10gross receipts derived from the use of the commercial,
11coin-operated amusement and vending machines. This paragraph
12is exempt from the provisions of Section 3-90.
13 (30) Beginning January 1, 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, soft
16drinks, 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 (31) Beginning on August 2, 2001 (the effective date of

SB0690 Enrolled- 76 -LRB101 04451 HLH 49459 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 the
9Retailers' Occupation Tax Act. If the equipment is leased in a
10manner that does not qualify for this exemption or is used in
11any other nonexempt manner, the lessor shall be liable for the
12tax imposed under this Act or the Service Use Tax Act, as the
13case may be, based on the fair market value of the property at
14the time the nonqualifying use occurs. No lessor shall collect
15or attempt to collect an amount (however designated) that
16purports to reimburse that lessor for the tax imposed by this
17Act or the Service Use Tax Act, as the case may be, if the tax
18has not been paid by the lessor. If a lessor improperly
19collects any such amount from the lessee, the lessee shall have
20a legal right to claim a refund of that amount from the lessor.
21If, however, 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 3-90.
25 (32) Beginning on August 2, 2001 (the effective date of
26Public Act 92-227), personal property purchased by a lessor who

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1leases 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 sales tax exemption
5identification number by the Department under Section 1g of the
6Retailers' Occupation Tax Act. If the property is leased in a
7manner that does not qualify for this exemption or used in any
8other nonexempt manner, the lessor shall be liable for the tax
9imposed under this Act or the Service Use Tax Act, as the case
10may be, based on the fair market value of the property at the
11time the nonqualifying use occurs. No lessor shall collect or
12attempt to collect an amount (however designated) that purports
13to reimburse that lessor for the tax imposed by this Act or the
14Service Use Tax Act, as the case may be, if the tax has not been
15paid by the lessor. If a lessor improperly collects any such
16amount from the lessee, the lessee shall have a legal right to
17claim a refund of that amount from the lessor. If, however,
18that amount is not refunded to the lessee for any reason, the
19lessor is liable to pay that amount to the Department. This
20paragraph is exempt from the provisions of Section 3-90.
21 (33) On and after July 1, 2003 and through June 30, 2004,
22the use in this State of motor vehicles of the second division
23with a gross vehicle weight in excess of 8,000 pounds and that
24are subject to the commercial distribution fee imposed under
25Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
261, 2004 and through June 30, 2005, the use in this State of

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1motor vehicles of the second division: (i) with a gross vehicle
2weight rating in excess of 8,000 pounds; (ii) that are subject
3to the commercial distribution fee imposed under Section
43-815.1 of the Illinois Vehicle Code; and (iii) that are
5primarily used for commercial purposes. Through June 30, 2005,
6this exemption applies to repair and replacement parts added
7after the initial purchase of such a motor vehicle if that
8motor vehicle is used in a manner that would qualify for the
9rolling stock exemption otherwise provided for in this Act. For
10purposes of this paragraph, the term "used for commercial
11purposes" means the transportation of persons or property in
12furtherance of any commercial or industrial enterprise,
13whether for-hire or not.
14 (34) Beginning January 1, 2008, tangible personal property
15used in the construction or maintenance of a community water
16supply, as defined under Section 3.145 of the Environmental
17Protection Act, that is operated by a not-for-profit
18corporation that holds a valid water supply permit issued under
19Title IV of the Environmental Protection Act. This paragraph is
20exempt from the provisions of Section 3-90.
21 (35) Beginning January 1, 2010, materials, parts,
22equipment, components, and furnishings incorporated into or
23upon an aircraft as part of the modification, refurbishment,
24completion, replacement, repair, or maintenance of the
25aircraft. This exemption includes consumable supplies used in
26the modification, refurbishment, completion, replacement,

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1repair, and maintenance of aircraft, but excludes any
2materials, parts, equipment, components, and consumable
3supplies used in the modification, replacement, repair, and
4maintenance of aircraft engines or power plants, whether such
5engines or power plants are installed or uninstalled upon any
6such aircraft. "Consumable supplies" include, but are not
7limited to, adhesive, tape, sandpaper, general purpose
8lubricants, cleaning solution, latex gloves, and protective
9films. This exemption applies only to the use of qualifying
10tangible personal property by persons who modify, refurbish,
11complete, repair, replace, or maintain aircraft and who (i)
12hold an Air Agency Certificate and are empowered to operate an
13approved repair station by the Federal Aviation
14Administration, (ii) have a Class IV Rating, and (iii) conduct
15operations in accordance with Part 145 of the Federal Aviation
16Regulations. The exemption does not include aircraft operated
17by a commercial air carrier providing scheduled passenger air
18service pursuant to authority issued under Part 121 or Part 129
19of the Federal Aviation Regulations. The changes made to this
20paragraph (35) by Public Act 98-534 are declarative of existing
21law.
22 (36) Tangible personal property purchased by a
23public-facilities corporation, as described in Section
2411-65-10 of the Illinois Municipal Code, for purposes of
25constructing or furnishing a municipal convention hall, but
26only if the legal title to the municipal convention hall is

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1transferred to the municipality without any further
2consideration by or on behalf of the municipality at the time
3of the completion of the municipal convention hall or upon the
4retirement or redemption of any bonds or other debt instruments
5issued by the public-facilities corporation in connection with
6the development of the municipal convention hall. This
7exemption includes existing public-facilities corporations as
8provided in Section 11-65-25 of the Illinois Municipal Code.
9This paragraph is exempt from the provisions of Section 3-90.
10 (37) Beginning January 1, 2017, menstrual pads, tampons,
11and menstrual cups.
12 (38) Merchandise that is subject to the Rental Purchase
13Agreement Occupation and Use Tax. The purchaser must certify
14that the item is purchased to be rented subject to a rental
15purchase agreement, as defined in the Rental Purchase Agreement
16Act, and provide proof of registration under the Rental
17Purchase Agreement Occupation and Use Tax Act. This paragraph
18is exempt from the provisions of Section 3-90.
19 (39) Tangible personal property purchased by a purchaser
20who is exempt from the tax imposed by this Act by operation of
21federal law. This paragraph is exempt from the provisions of
22Section 3-90.
23 (40) Qualified tangible personal property used in the
24construction or operation of a data center that has been
25granted a certificate of exemption by the Department of
26Commerce and Economic Opportunity, whether that tangible

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1personal property is purchased by the owner, operator, or
2tenant of the data center or by a contractor or subcontractor
3of the owner, operator, or tenant. Data centers that would have
4qualified for a certificate of exemption prior to January 1,
52020 had this amendatory Act of the 101st General Assembly been
6in effect, may apply for and obtain an exemption for subsequent
7purchases of computer equipment or enabling software purchased
8or leased to upgrade, supplement, or replace computer equipment
9or enabling software purchased or leased in the original
10investment that would have qualified.
11 The Department of Commerce and Economic Opportunity shall
12grant a certificate of exemption under this item (40) to
13qualified data centers as defined by Section 605-1025 of the
14Department of Commerce and Economic Opportunity Law of the
15Civil Administrative Code of Illinois.
16 For the purposes of this item (40):
17 "Data center" means a building or a series of buildings
18 rehabilitated or constructed to house working servers in
19 one physical location or multiple sites within the State of
20 Illinois.
21 "Qualified tangible personal property" means:
22 electrical systems and equipment; climate control and
23 chilling equipment and systems; mechanical systems and
24 equipment; monitoring and secure systems; emergency
25 generators; hardware; computers; servers; data storage
26 devices; network connectivity equipment; racks; cabinets;

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1 telecommunications cabling infrastructure; raised floor
2 systems; peripheral components or systems; software;
3 mechanical, electrical, or plumbing systems; battery
4 systems; cooling systems and towers; temperature control
5 systems; other cabling; and other data center
6 infrastructure equipment and systems necessary to operate
7 qualified tangible personal property, including fixtures;
8 and component parts of any of the foregoing, including
9 installation, maintenance, repair, refurbishment, and
10 replacement of qualified tangible personal property to
11 generate, transform, transmit, distribute, or manage
12 electricity necessary to operate qualified tangible
13 personal property; and all other tangible personal
14 property that is essential to the operations of a computer
15 data center. The term "qualified tangible personal
16 property" also includes building materials physically
17 incorporated in to the qualifying data center. To document
18 the exemption allowed under this Section, the retailer must
19 obtain from the purchaser a copy of the certificate of
20 eligibility issued by the Department of Commerce and
21 Economic Opportunity.
22 This item (40) is exempt from the provisions of Section
233-90.
24(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
25100-22, eff. 7-6-17; 100-437, eff. 1-1-18; 100-594, eff.
266-29-18; 100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; revised

SB0690 Enrolled- 83 -LRB101 04451 HLH 49459 b
11-8-19.)
2 Section 15-35. The Service Use Tax Act is amended by
3changing Section 3-5 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 or
18cultural organization that establishes, by proof required by
19the Department by rule, that it has received an exemption under
20Section 501(c)(3) of the Internal Revenue Code and that is
21organized 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) this amendatory Act of the
592nd General Assembly, however, an entity otherwise eligible
6for this exemption shall not make tax-free purchases unless it
7has an active identification number issued by 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 and
15used, 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 July
211, 2017, graphic arts machinery and equipment is included in
22the 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 to
10be registered under Section 3-809 of the Illinois Vehicle Code,
11but excluding other motor vehicles required to be registered
12under the Illinois Vehicle Code. Horticultural polyhouses or
13hoop houses used for propagating, growing, or overwintering
14plants shall be considered farm machinery and equipment under
15this item (7). Agricultural chemical tender tanks and dry boxes
16shall include units sold separately from a motor vehicle
17required to be licensed and units sold mounted on a motor
18vehicle required to be licensed if the selling price of the
19tender 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. This item (7) is exempt from the
9provisions of Section 3-75.
10 (8) Until June 30, 2013, fuel and petroleum products sold
11to or used by an air common carrier, certified by the carrier
12to be used for consumption, shipment, or storage in the conduct
13of its business as an air common carrier, for a flight destined
14for or returning from a location or locations outside the
15United States without regard to previous or subsequent domestic
16stopovers.
17 Beginning July 1, 2013, fuel and petroleum products sold to
18or used by an air carrier, certified by the carrier to be used
19for consumption, shipment, or storage in the conduct of its
20business as an air common carrier, for a flight that (i) is
21engaged in foreign trade or is engaged in trade between the
22United States and any of its possessions and (ii) transports at
23least one individual or package for hire from the city of
24origination to the city of final destination on the same
25aircraft, without regard to a change in the flight number of
26that aircraft.

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1 (9) Proceeds of mandatory service charges separately
2stated on customers' bills for the purchase and consumption of
3food and beverages acquired as an incident to the purchase of a
4service from a serviceman, to the extent that the proceeds of
5the service charge are in fact turned over as tips or as a
6substitute for tips to the employees who participate directly
7in preparing, serving, hosting or cleaning up the food or
8beverage function with respect to which the service charge is
9imposed.
10 (10) Until July 1, 2003, oil field exploration, drilling,
11and production equipment, including (i) rigs and parts of rigs,
12rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
13tubular goods, including casing and drill strings, (iii) pumps
14and pump-jack units, (iv) storage tanks and flow lines, (v) any
15individual replacement part for oil field exploration,
16drilling, and production equipment, and (vi) machinery and
17equipment purchased for lease; but excluding motor vehicles
18required to be registered under the Illinois Vehicle Code.
19 (11) Proceeds from the sale of photoprocessing machinery
20and equipment, including repair and replacement parts, both new
21and used, including that manufactured on special order,
22certified by the purchaser to be used primarily for
23photoprocessing, and including photoprocessing machinery and
24equipment purchased for lease.
25 (12) Until July 1, 2023, coal and aggregate exploration,
26mining, off-highway hauling, processing, maintenance, and

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1reclamation equipment, including replacement parts and
2equipment, and including equipment purchased for lease, but
3excluding motor vehicles required to be registered under the
4Illinois Vehicle Code. The changes made to this Section by
5Public Act 97-767 apply on and after July 1, 2003, but no claim
6for credit or refund is allowed on or after August 16, 2013
7(the effective date of Public Act 98-456) for such taxes paid
8during the period beginning July 1, 2003 and ending on August
916, 2013 (the effective date of Public Act 98-456).
10 (13) Semen used for artificial insemination of livestock
11for direct agricultural production.
12 (14) Horses, or interests in horses, registered with and
13meeting the requirements of any of the Arabian Horse Club
14Registry of America, Appaloosa Horse Club, American Quarter
15Horse Association, United States Trotting Association, or
16Jockey Club, as appropriate, used for purposes of breeding or
17racing for prizes. This item (14) is exempt from the provisions
18of Section 3-75, and the exemption provided for under this item
19(14) applies for all periods beginning May 30, 1995, but no
20claim for credit or refund is allowed on or after January 1,
212008 (the effective date of Public Act 95-88) this amendatory
22Act of the 95th General Assembly for such taxes paid during the
23period beginning May 30, 2000 and ending on January 1, 2008
24(the effective date of Public Act 95-88) this amendatory Act of
25the 95th General Assembly.
26 (15) Computers and communications equipment utilized for

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

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

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1December 31, 1995 and ending with taxable years ending on or
2before December 31, 2004, personal property that is used in the
3performance of infrastructure repairs in this State, including
4but not limited to municipal roads and streets, access roads,
5bridges, sidewalks, waste disposal systems, water and sewer
6line extensions, water distribution and purification
7facilities, storm water drainage and retention facilities, and
8sewage treatment facilities, resulting from a State or
9federally declared disaster in Illinois or bordering Illinois
10when such repairs are initiated on facilities located in the
11declared disaster area within 6 months after the disaster.
12 (19) Beginning July 1, 1999, game or game birds purchased
13at a "game breeding and hunting preserve area" as that term is
14used in the Wildlife Code. This paragraph is exempt from the
15provisions of Section 3-75.
16 (20) A motor vehicle, as that term is defined in Section
171-146 of the Illinois Vehicle Code, that is donated to a
18corporation, limited liability company, society, association,
19foundation, or institution that is determined by the Department
20to be organized and operated exclusively for educational
21purposes. For purposes of this exemption, "a corporation,
22limited liability company, society, association, foundation,
23or institution organized and operated exclusively for
24educational purposes" means all tax-supported public schools,
25private schools that offer systematic instruction in useful
26branches of learning by methods common to public schools and

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1that compare favorably in their scope and intensity with the
2course of study presented in tax-supported schools, and
3vocational or technical schools or institutes organized and
4operated exclusively to provide a course of study of not less
5than 6 weeks duration and designed to prepare individuals to
6follow a trade or to pursue a manual, technical, mechanical,
7industrial, business, or commercial occupation.
8 (21) Beginning January 1, 2000, personal property,
9including food, purchased through fundraising events for the
10benefit of a public or private elementary or secondary school,
11a group of those schools, or one or more school districts if
12the events are sponsored by an entity recognized by the school
13district that consists primarily of volunteers and includes
14parents and teachers of the school children. This paragraph
15does not apply to fundraising events (i) for the benefit of
16private home instruction or (ii) for which the fundraising
17entity purchases the personal property sold at the events from
18another individual or entity that sold the property for the
19purpose of resale by the fundraising entity and that profits
20from the sale to the fundraising entity. This paragraph is
21exempt from the provisions of Section 3-75.
22 (22) Beginning January 1, 2000 and through December 31,
232001, new or used automatic vending machines that prepare and
24serve hot food and beverages, including coffee, soup, and other
25items, and replacement parts for these machines. Beginning
26January 1, 2002 and through June 30, 2003, machines and parts

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1for machines used in commercial, coin-operated amusement and
2vending business if a use or occupation tax is paid on the
3gross receipts derived from the use of the commercial,
4coin-operated amusement and vending machines. This paragraph
5is exempt from the provisions of Section 3-75.
6 (23) Beginning August 23, 2001 and through June 30, 2016,
7food for human consumption that is to be consumed off the
8premises where it is sold (other than alcoholic beverages, soft
9drinks, and food that has been prepared for immediate
10consumption) and prescription and nonprescription medicines,
11drugs, medical appliances, and insulin, urine testing
12materials, syringes, and needles used by diabetics, for human
13use, when purchased for use by a person receiving medical
14assistance under Article V of the Illinois Public Aid Code who
15resides in a licensed long-term care facility, as defined in
16the Nursing Home Care Act, or in a licensed facility as defined
17in the ID/DD Community Care Act, the MC/DD Act, or the
18Specialized Mental Health Rehabilitation Act of 2013.
19 (24) Beginning on August 2, 2001 (the effective date of
20Public Act 92-227) this amendatory Act of the 92nd General
21Assembly, computers and communications equipment utilized for
22any hospital purpose and equipment used in the diagnosis,
23analysis, or treatment of hospital patients purchased by a
24lessor who leases the equipment, under a lease of one year or
25longer executed or in effect at the time the lessor would
26otherwise be subject to the tax imposed by this Act, to a

SB0690 Enrolled- 94 -LRB101 04451 HLH 49459 b
1hospital that has been issued an active tax exemption
2identification number by the Department under Section 1g of the
3Retailers' Occupation Tax Act. If the equipment is leased in a
4manner that does not qualify for this exemption or is used in
5any other nonexempt manner, the lessor shall be liable for the
6tax imposed under this Act or the Use Tax Act, as the case may
7be, based on the fair market value of the property at the time
8the nonqualifying use occurs. No lessor shall collect or
9attempt to collect an amount (however designated) that purports
10to reimburse that lessor for the tax imposed by this Act or the
11Use Tax Act, as the case may be, if the tax has not been paid by
12the lessor. If a lessor improperly collects any such amount
13from the lessee, the lessee shall have a legal right to claim a
14refund of that amount from the lessor. If, however, that amount
15is not refunded to the lessee for any reason, the lessor is
16liable to pay that amount to the Department. This paragraph is
17exempt from the provisions of Section 3-75.
18 (25) Beginning on August 2, 2001 (the effective date of
19Public Act 92-227) this amendatory Act of the 92nd General
20Assembly, personal property purchased by a lessor who leases
21the property, under a lease of one year or longer executed or
22in effect at the time the lessor would otherwise be subject to
23the tax imposed by this Act, to a governmental body that has
24been issued an active tax exemption identification number by
25the Department under Section 1g of the Retailers' Occupation
26Tax Act. If the property is leased in a manner that does not

SB0690 Enrolled- 95 -LRB101 04451 HLH 49459 b
1qualify for this exemption or is used in any other nonexempt
2manner, the lessor shall be liable for the tax imposed under
3this Act or the Use Tax Act, as the case may be, based on the
4fair market value of the property at the time the nonqualifying
5use occurs. No lessor shall collect or attempt to collect an
6amount (however designated) that purports to reimburse that
7lessor for the tax imposed by this Act or the Use Tax Act, as
8the case may be, if the tax has not been paid by the lessor. If
9a lessor improperly collects any such amount from the lessee,
10the lessee shall have a legal right to claim a refund of that
11amount from the lessor. If, however, that amount is not
12refunded to the lessee for any reason, the lessor is liable to
13pay that amount to the Department. This paragraph is exempt
14from the provisions of Section 3-75.
15 (26) Beginning January 1, 2008, tangible personal property
16used in the construction or maintenance of a community water
17supply, as defined under Section 3.145 of the Environmental
18Protection Act, that is operated by a not-for-profit
19corporation that holds a valid water supply permit issued under
20Title IV of the Environmental Protection Act. This paragraph is
21exempt from the provisions of Section 3-75.
22 (27) Beginning January 1, 2010, materials, parts,
23equipment, components, and furnishings incorporated into or
24upon an aircraft as part of the modification, refurbishment,
25completion, replacement, repair, or maintenance of the
26aircraft. This exemption includes consumable supplies used in

SB0690 Enrolled- 96 -LRB101 04451 HLH 49459 b
1the modification, refurbishment, completion, replacement,
2repair, and maintenance of aircraft, but excludes any
3materials, parts, equipment, components, and consumable
4supplies used in the modification, replacement, repair, and
5maintenance of aircraft engines or power plants, whether such
6engines or power plants are installed or uninstalled upon any
7such aircraft. "Consumable supplies" include, but are not
8limited to, adhesive, tape, sandpaper, general purpose
9lubricants, cleaning solution, latex gloves, and protective
10films. This exemption applies only to the use of qualifying
11tangible personal property transferred incident to the
12modification, refurbishment, completion, replacement, repair,
13or maintenance of aircraft by persons who (i) hold an Air
14Agency Certificate and are empowered to operate an approved
15repair station by the Federal Aviation Administration, (ii)
16have a Class IV Rating, and (iii) conduct operations in
17accordance with Part 145 of the Federal Aviation Regulations.
18The exemption does not include aircraft operated by a
19commercial air carrier providing scheduled passenger air
20service pursuant to authority issued under Part 121 or Part 129
21of the Federal Aviation Regulations. The changes made to this
22paragraph (27) by Public Act 98-534 are declarative of existing
23law.
24 (28) Tangible personal property purchased by a
25public-facilities corporation, as described in Section
2611-65-10 of the Illinois Municipal Code, for purposes of

SB0690 Enrolled- 97 -LRB101 04451 HLH 49459 b
1constructing or furnishing a municipal convention hall, but
2only if the legal title to the municipal convention hall is
3transferred to the municipality without any further
4consideration by or on behalf of the municipality at the time
5of the completion of the municipal convention hall or upon the
6retirement or redemption of any bonds or other debt instruments
7issued by the public-facilities corporation in connection with
8the development of the municipal convention hall. This
9exemption includes existing public-facilities corporations as
10provided in Section 11-65-25 of the Illinois Municipal Code.
11This paragraph is exempt from the provisions of Section 3-75.
12 (29) Beginning January 1, 2017, menstrual pads, tampons,
13and menstrual cups.
14 (30) Tangible personal property transferred to a purchaser
15who is exempt from the tax imposed by this Act by operation of
16federal law. This paragraph is exempt from the provisions of
17Section 3-75.
18 (31) Qualified tangible personal property used in the
19construction or operation of a data center that has been
20granted a certificate of exemption by the Department of
21Commerce and Economic Opportunity, whether that tangible
22personal property is purchased by the owner, operator, or
23tenant of the data center or by a contractor or subcontractor
24of the owner, operator, or tenant. Data centers that would have
25qualified for a certificate of exemption prior to January 1,
262020 had this amendatory Act of the 101st General Assembly been

SB0690 Enrolled- 98 -LRB101 04451 HLH 49459 b
1in effect, may apply for and obtain an exemption for subsequent
2purchases of computer equipment or enabling software purchased
3or leased to upgrade, supplement, or replace computer equipment
4or enabling software purchased or leased in the original
5investment that would have qualified.
6 The Department of Commerce and Economic Opportunity shall
7grant a certificate of exemption under this item (31) to
8qualified data centers as defined by Section 605-1025 of the
9Department of Commerce and Economic Opportunity Law of the
10Civil Administrative Code of Illinois.
11 For the purposes of this item (31):
12 "Data center" means a building or a series of buildings
13 rehabilitated or constructed to house working servers in
14 one physical location or multiple sites within the State of
15 Illinois.
16 "Qualified tangible personal property" means:
17 electrical systems and equipment; climate control and
18 chilling equipment and systems; mechanical systems and
19 equipment; monitoring and secure systems; emergency
20 generators; hardware; computers; servers; data storage
21 devices; network connectivity equipment; racks; cabinets;
22 telecommunications cabling infrastructure; raised floor
23 systems; peripheral components or systems; software;
24 mechanical, electrical, or plumbing systems; battery
25 systems; cooling systems and towers; temperature control
26 systems; other cabling; and other data center

SB0690 Enrolled- 99 -LRB101 04451 HLH 49459 b
1 infrastructure equipment and systems necessary to operate
2 qualified tangible personal property, including fixtures;
3 and component parts of any of the foregoing, including
4 installation, maintenance, repair, refurbishment, and
5 replacement of qualified tangible personal property to
6 generate, transform, transmit, distribute, or manage
7 electricity necessary to operate qualified tangible
8 personal property; and all other tangible personal
9 property that is essential to the operations of a computer
10 data center. The term "qualified tangible personal
11 property" also includes building materials physically
12 incorporated in to the qualifying data center. To document
13 the exemption allowed under this Section, the retailer must
14 obtain from the purchaser a copy of the certificate of
15 eligibility issued by the Department of Commerce and
16 Economic Opportunity.
17 This item (31) is exempt from the provisions of Section
183-75.
19(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
20100-22, eff. 7-6-17; 100-594, eff. 6-29-18; 100-1171, eff.
211-4-19; revised 1-8-19.)
22 Section 15-40. The Service Occupation Tax Act is amended by
23changing Section 3-5 as follows:
24 (35 ILCS 115/3-5)

SB0690 Enrolled- 100 -LRB101 04451 HLH 49459 b
1 Sec. 3-5. Exemptions. The following tangible personal
2property is exempt from the tax imposed by this Act:
3 (1) Personal property sold by a corporation, society,
4association, foundation, institution, or organization, other
5than a limited liability company, that is organized and
6operated as a not-for-profit service enterprise for the benefit
7of persons 65 years of age or older if the personal property
8was not purchased by the enterprise for the purpose of resale
9by the enterprise.
10 (2) Personal property purchased by a not-for-profit
11Illinois county fair association for use in conducting,
12operating, or promoting the county fair.
13 (3) Personal property purchased by any not-for-profit arts
14or cultural organization that establishes, by proof required by
15the Department by rule, that it has received an exemption under
16Section 501(c)(3) of the Internal Revenue Code and that is
17organized and operated primarily for the presentation or
18support of arts or cultural programming, activities, or
19services. These organizations include, but are not limited to,
20music and dramatic arts organizations such as symphony
21orchestras and theatrical groups, arts and cultural service
22organizations, local arts councils, visual arts organizations,
23and media arts organizations. On and after July 1, 2001 (the
24effective date of Public Act 92-35) this amendatory Act of the
2592nd General Assembly, however, an entity otherwise eligible
26for this exemption shall not make tax-free purchases unless it

SB0690 Enrolled- 101 -LRB101 04451 HLH 49459 b
1has an active identification number issued by the Department.
2 (4) Legal tender, currency, medallions, or gold or silver
3coinage issued by the State of Illinois, the government of the
4United States of America, or the government of any foreign
5country, and bullion.
6 (5) Until July 1, 2003 and beginning again on September 1,
72004 through August 30, 2014, graphic arts machinery and
8equipment, including repair and replacement parts, both new and
9used, and including that manufactured on special order or
10purchased for lease, certified by the purchaser to be used
11primarily for graphic arts production. Equipment includes
12chemicals or chemicals acting as catalysts but only if the
13chemicals or chemicals acting as catalysts effect a direct and
14immediate change upon a graphic arts product. Beginning on July
151, 2017, graphic arts machinery and equipment is included in
16the manufacturing and assembling machinery and equipment
17exemption under Section 2 of this Act.
18 (6) Personal property sold by a teacher-sponsored student
19organization affiliated with an elementary or secondary school
20located in Illinois.
21 (7) Farm machinery and equipment, both new and used,
22including that manufactured on special order, certified by the
23purchaser to be used primarily for production agriculture or
24State or federal agricultural programs, including individual
25replacement parts for the machinery and equipment, including
26machinery and equipment purchased for lease, and including

SB0690 Enrolled- 102 -LRB101 04451 HLH 49459 b
1implements of husbandry defined in Section 1-130 of the
2Illinois Vehicle Code, farm machinery and agricultural
3chemical and fertilizer spreaders, and nurse wagons required to
4be registered under Section 3-809 of the Illinois Vehicle Code,
5but excluding other motor vehicles required to be registered
6under the Illinois Vehicle Code. Horticultural polyhouses or
7hoop houses used for propagating, growing, or overwintering
8plants shall be considered farm machinery and equipment under
9this item (7). Agricultural chemical tender tanks and dry boxes
10shall include units sold separately from a motor vehicle
11required to be licensed and units sold mounted on a motor
12vehicle required to be licensed if the selling price of the
13tender is separately stated.
14 Farm machinery and equipment shall include precision
15farming equipment that is installed or purchased to be
16installed on farm machinery and equipment including, but not
17limited to, tractors, harvesters, sprayers, planters, seeders,
18or spreaders. Precision farming equipment includes, but is not
19limited to, soil testing sensors, computers, monitors,
20software, global positioning and mapping systems, and other
21such equipment.
22 Farm machinery and equipment also includes computers,
23sensors, software, and related equipment used primarily in the
24computer-assisted operation of production agriculture
25facilities, equipment, and activities such as, but not limited
26to, the collection, monitoring, and correlation of animal and

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1crop data for the purpose of formulating animal diets and
2agricultural chemicals. This item (7) is exempt from the
3provisions of Section 3-55.
4 (8) Until June 30, 2013, fuel and petroleum products sold
5to or used by an air common carrier, certified by the carrier
6to be used for consumption, shipment, or storage in the conduct
7of its business as an air common carrier, for a flight destined
8for or returning from a location or locations outside the
9United States without regard to previous or subsequent domestic
10stopovers.
11 Beginning July 1, 2013, fuel and petroleum products sold to
12or used by an air carrier, certified by the carrier to be used
13for consumption, shipment, or storage in the conduct of its
14business as an air common carrier, for a flight that (i) is
15engaged in foreign trade or is engaged in trade between the
16United States and any of its possessions and (ii) transports at
17least one individual or package for hire from the city of
18origination to the city of final destination on the same
19aircraft, without regard to a change in the flight number of
20that aircraft.
21 (9) Proceeds of mandatory service charges separately
22stated on customers' bills for the purchase and consumption of
23food and beverages, to the extent that the proceeds of the
24service charge are in fact turned over as tips or as a
25substitute for tips to the employees who participate directly
26in preparing, serving, hosting or cleaning up the food or

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1beverage function with respect to which the service charge is
2imposed.
3 (10) Until July 1, 2003, oil field exploration, drilling,
4and production equipment, including (i) rigs and parts of rigs,
5rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
6tubular goods, including casing and drill strings, (iii) pumps
7and pump-jack units, (iv) storage tanks and flow lines, (v) any
8individual replacement part for oil field exploration,
9drilling, and production equipment, and (vi) machinery and
10equipment purchased for lease; but excluding motor vehicles
11required to be registered under the Illinois Vehicle Code.
12 (11) Photoprocessing machinery and equipment, including
13repair and replacement parts, both new and used, including that
14manufactured on special order, certified by the purchaser to be
15used primarily for photoprocessing, and including
16photoprocessing machinery and equipment purchased for lease.
17 (12) Until July 1, 2023, coal and aggregate exploration,
18mining, off-highway hauling, processing, maintenance, and
19reclamation equipment, including replacement parts and
20equipment, and including equipment purchased for lease, but
21excluding motor vehicles required to be registered under the
22Illinois Vehicle Code. The changes made to this Section by
23Public Act 97-767 apply on and after July 1, 2003, but no claim
24for credit or refund is allowed on or after August 16, 2013
25(the effective date of Public Act 98-456) for such taxes paid
26during the period beginning July 1, 2003 and ending on August

SB0690 Enrolled- 105 -LRB101 04451 HLH 49459 b
116, 2013 (the effective date of Public Act 98-456).
2 (13) Beginning January 1, 1992 and through June 30, 2016,
3food for human consumption that is to be consumed off the
4premises where it is sold (other than alcoholic beverages, soft
5drinks and food that has been prepared for immediate
6consumption) and prescription and non-prescription medicines,
7drugs, medical appliances, and insulin, urine testing
8materials, syringes, and needles used by diabetics, for human
9use, when purchased for use by a person receiving medical
10assistance under Article V of the Illinois Public Aid Code who
11resides in a licensed long-term care facility, as defined in
12the Nursing Home Care Act, or in a licensed facility as defined
13in the ID/DD Community Care Act, the MC/DD Act, or the
14Specialized Mental Health Rehabilitation Act of 2013.
15 (14) Semen used for artificial insemination of livestock
16for direct agricultural production.
17 (15) 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 (15) is exempt from the provisions
23of Section 3-55, and the exemption provided for under this item
24(15) applies for all periods beginning May 30, 1995, but no
25claim for credit or refund is allowed on or after January 1,
262008 (the effective date of Public Act 95-88) for such taxes

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1paid during the period beginning May 30, 2000 and ending on
2January 1, 2008 (the effective date of Public Act 95-88).
3 (16) Computers and communications equipment utilized for
4any hospital purpose and equipment used in the diagnosis,
5analysis, or treatment of hospital patients sold to a lessor
6who leases the equipment, under a lease of one year or longer
7executed or in effect at the time of the purchase, to a
8hospital that has been issued an active tax exemption
9identification number by the Department under Section 1g of the
10Retailers' Occupation Tax Act.
11 (17) Personal property sold to a lessor who leases the
12property, under a lease of one year or longer executed or in
13effect at the time of the purchase, to a governmental body that
14has been issued an active tax exemption identification number
15by the Department under Section 1g of the Retailers' Occupation
16Tax Act.
17 (18) Beginning with taxable years ending on or after
18December 31, 1995 and ending with taxable years ending on or
19before December 31, 2004, personal property that is donated for
20disaster relief to be used in a State or federally declared
21disaster area in Illinois or bordering Illinois by a
22manufacturer or retailer that is registered in this State to a
23corporation, society, association, foundation, or institution
24that has been issued a sales tax exemption identification
25number by the Department that assists victims of the disaster
26who reside within the declared disaster area.

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1 (19) Beginning with taxable years ending on or after
2December 31, 1995 and ending with taxable years ending on or
3before December 31, 2004, personal property that is used in the
4performance of infrastructure repairs in this State, including
5but not limited to municipal roads and streets, access roads,
6bridges, sidewalks, waste disposal systems, water and sewer
7line extensions, water distribution and purification
8facilities, storm water drainage and retention facilities, and
9sewage treatment facilities, resulting from a State or
10federally declared disaster in Illinois or bordering Illinois
11when such repairs are initiated on facilities located in the
12declared disaster area within 6 months after the disaster.
13 (20) Beginning July 1, 1999, game or game birds sold at a
14"game breeding and hunting preserve area" as that term is used
15in the Wildlife Code. This paragraph is exempt from the
16provisions of Section 3-55.
17 (21) A motor vehicle, as that term is defined in Section
181-146 of the Illinois Vehicle Code, that is donated to a
19corporation, limited liability company, society, association,
20foundation, or institution that is determined by the Department
21to be organized and operated exclusively for educational
22purposes. For purposes of this exemption, "a corporation,
23limited liability company, society, association, foundation,
24or institution organized and operated exclusively for
25educational purposes" means all tax-supported public schools,
26private schools that offer systematic instruction in useful

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1branches of learning by methods common to public schools and
2that compare favorably in their scope and intensity with the
3course of study presented in tax-supported schools, and
4vocational or technical schools or institutes organized and
5operated exclusively to provide a course of study of not less
6than 6 weeks duration and designed to prepare individuals to
7follow a trade or to pursue a manual, technical, mechanical,
8industrial, business, or commercial occupation.
9 (22) Beginning January 1, 2000, personal property,
10including food, purchased through fundraising events for the
11benefit of a public or private elementary or secondary school,
12a group of those schools, or one or more school districts if
13the events are sponsored by an entity recognized by the school
14district that consists primarily of volunteers and includes
15parents and teachers of the school children. This paragraph
16does not apply to fundraising events (i) for the benefit of
17private home instruction or (ii) for which the fundraising
18entity purchases the personal property sold at the events from
19another individual or entity that sold the property for the
20purpose of resale by the fundraising entity and that profits
21from the sale to the fundraising entity. This paragraph is
22exempt from the provisions of Section 3-55.
23 (23) Beginning January 1, 2000 and through December 31,
242001, new or used automatic vending machines that prepare and
25serve hot food and beverages, including coffee, soup, and other
26items, and replacement parts for these machines. Beginning

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1January 1, 2002 and through June 30, 2003, machines and parts
2for machines used in commercial, coin-operated amusement and
3vending business if a use or occupation tax is paid on the
4gross receipts derived from the use of the commercial,
5coin-operated amusement and vending machines. This paragraph
6is exempt from the provisions of Section 3-55.
7 (24) Beginning on August 2, 2001 (the effective date of
8Public Act 92-227) this amendatory Act of the 92nd General
9Assembly, computers and communications equipment utilized for
10any hospital purpose and equipment used in the diagnosis,
11analysis, or treatment of hospital patients sold to a lessor
12who leases the equipment, under a lease of one year or longer
13executed or in effect at the time of the purchase, to a
14hospital that has been issued an active tax exemption
15identification number by the Department under Section 1g of the
16Retailers' Occupation Tax Act. This paragraph is exempt from
17the provisions of Section 3-55.
18 (25) Beginning on August 2, 2001 (the effective date of
19Public Act 92-227) this amendatory Act of the 92nd General
20Assembly, personal property sold to a lessor who leases the
21property, under a lease of one year or longer executed or in
22effect at the time of the purchase, to a governmental body that
23has been issued an active tax exemption identification number
24by the Department under Section 1g of the Retailers' Occupation
25Tax Act. This paragraph is exempt from the provisions of
26Section 3-55.

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1 (26) Beginning on January 1, 2002 and through June 30,
22016, tangible personal property purchased from an Illinois
3retailer by a taxpayer engaged in centralized purchasing
4activities in Illinois who will, upon receipt of the property
5in Illinois, temporarily store the property in Illinois (i) for
6the purpose of subsequently transporting it outside this State
7for use or consumption thereafter solely outside this State or
8(ii) for the purpose of being processed, fabricated, or
9manufactured into, attached to, or incorporated into other
10tangible personal property to be transported outside this State
11and thereafter used or consumed solely outside this State. The
12Director of Revenue shall, pursuant to rules adopted in
13accordance with the Illinois Administrative Procedure Act,
14issue a permit to any taxpayer in good standing with the
15Department who is eligible for the exemption under this
16paragraph (26). The permit issued under this paragraph (26)
17shall authorize the holder, to the extent and in the manner
18specified in the rules adopted under this Act, to purchase
19tangible personal property from a retailer exempt from the
20taxes imposed by this Act. Taxpayers shall maintain all
21necessary books and records to substantiate the use and
22consumption of all such tangible personal property outside of
23the State of Illinois.
24 (27) Beginning January 1, 2008, tangible personal property
25used in the construction or maintenance of a community water
26supply, as defined under Section 3.145 of the Environmental

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1Protection Act, that is operated by a not-for-profit
2corporation that holds a valid water supply permit issued under
3Title IV of the Environmental Protection Act. This paragraph is
4exempt from the provisions of Section 3-55.
5 (28) Tangible personal property sold to a
6public-facilities corporation, as described in Section
711-65-10 of the Illinois Municipal Code, for purposes of
8constructing or furnishing a municipal convention hall, but
9only if the legal title to the municipal convention hall is
10transferred to the municipality without any further
11consideration by or on behalf of the municipality at the time
12of the completion of the municipal convention hall or upon the
13retirement or redemption of any bonds or other debt instruments
14issued by the public-facilities corporation in connection with
15the development of the municipal convention hall. This
16exemption includes existing public-facilities corporations as
17provided in Section 11-65-25 of the Illinois Municipal Code.
18This paragraph is exempt from the provisions of Section 3-55.
19 (29) Beginning January 1, 2010, materials, parts,
20equipment, components, and furnishings incorporated into or
21upon an aircraft as part of the modification, refurbishment,
22completion, replacement, repair, or maintenance of the
23aircraft. This exemption includes consumable supplies used in
24the modification, refurbishment, completion, replacement,
25repair, and maintenance of aircraft, but excludes any
26materials, parts, equipment, components, and consumable

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1supplies used in the modification, replacement, repair, and
2maintenance of aircraft engines or power plants, whether such
3engines or power plants are installed or uninstalled upon any
4such aircraft. "Consumable supplies" include, but are not
5limited to, adhesive, tape, sandpaper, general purpose
6lubricants, cleaning solution, latex gloves, and protective
7films. This exemption applies only to the transfer of
8qualifying tangible personal property incident to the
9modification, refurbishment, completion, replacement, repair,
10or maintenance of an aircraft by persons who (i) hold an Air
11Agency Certificate and are empowered to operate an approved
12repair station by the Federal Aviation Administration, (ii)
13have a Class IV Rating, and (iii) conduct operations in
14accordance with Part 145 of the Federal Aviation Regulations.
15The exemption does not include aircraft operated by a
16commercial air carrier providing scheduled passenger air
17service pursuant to authority issued under Part 121 or Part 129
18of the Federal Aviation Regulations. The changes made to this
19paragraph (29) by Public Act 98-534 are declarative of existing
20law.
21 (30) Beginning January 1, 2017, menstrual pads, tampons,
22and menstrual cups.
23 (31) Tangible personal property transferred to a purchaser
24who is exempt from tax by operation of federal law. This
25paragraph is exempt from the provisions of Section 3-55.
26 (32) Qualified tangible personal property used in the

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1construction or operation of a data center that has been
2granted a certificate of exemption by the Department of
3Commerce and Economic Opportunity, whether that tangible
4personal property is purchased by the owner, operator, or
5tenant of the data center or by a contractor or subcontractor
6of the owner, operator, or tenant. Data centers that would have
7qualified for a certificate of exemption prior to January 1,
82020 had this amendatory Act of the 101st General Assembly been
9in effect, may apply for and obtain an exemption for subsequent
10purchases of computer equipment or enabling software purchased
11or leased to upgrade, supplement, or replace computer equipment
12or enabling software purchased or leased in the original
13investment that would have qualified.
14 The Department of Commerce and Economic Opportunity shall
15grant a certificate of exemption under this item (32) to
16qualified data centers as defined by Section 605-1025 of the
17Department of Commerce and Economic Opportunity Law of the
18Civil Administrative Code of Illinois.
19 For the purposes of this item (32):
20 "Data center" means a building or a series of buildings
21 rehabilitated or constructed to house working servers in
22 one physical location or multiple sites within the State of
23 Illinois.
24 "Qualified tangible personal property" means:
25 electrical systems and equipment; climate control and
26 chilling equipment and systems; mechanical systems and

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1 equipment; monitoring and secure systems; emergency
2 generators; hardware; computers; servers; data storage
3 devices; network connectivity equipment; racks; cabinets;
4 telecommunications cabling infrastructure; raised floor
5 systems; peripheral components or systems; software;
6 mechanical, electrical, or plumbing systems; battery
7 systems; cooling systems and towers; temperature control
8 systems; other cabling; and other data center
9 infrastructure equipment and systems necessary to operate
10 qualified tangible personal property, including fixtures;
11 and component parts of any of the foregoing, including
12 installation, maintenance, repair, refurbishment, and
13 replacement of qualified tangible personal property to
14 generate, transform, transmit, distribute, or manage
15 electricity necessary to operate qualified tangible
16 personal property; and all other tangible personal
17 property that is essential to the operations of a computer
18 data center. The term "qualified tangible personal
19 property" also includes building materials physically
20 incorporated in to the qualifying data center. To document
21 the exemption allowed under this Section, the retailer must
22 obtain from the purchaser a copy of the certificate of
23 eligibility issued by the Department of Commerce and
24 Economic Opportunity.
25 This item (32) is exempt from the provisions of Section
263-55.

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1(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
2100-22, eff. 7-6-17; 100-594, eff. 6-29-18; 100-1171, eff.
31-4-19; revised 1-8-19.)
4 Section 15-45. The Retailers' Occupation Tax Act is amended
5by changing Sections 1, 2, 2-5, 2-12, and 2a as follows:
6 (35 ILCS 120/1) (from Ch. 120, par. 440)
7 Sec. 1. Definitions. "Sale at retail" means any transfer of
8the ownership of or title to tangible personal property to a
9purchaser, for the purpose of use or consumption, and not for
10the purpose of resale in any form as tangible personal property
11to the extent not first subjected to a use for which it was
12purchased, for a valuable consideration: Provided that the
13property purchased is deemed to be purchased for the purpose of
14resale, despite first being used, to the extent to which it is
15resold as an ingredient of an intentionally produced product or
16byproduct of manufacturing. For this purpose, slag produced as
17an incident to manufacturing pig iron or steel and sold is
18considered to be an intentionally produced byproduct of
19manufacturing. Transactions whereby the possession of the
20property is transferred but the seller retains the title as
21security for payment of the selling price shall be deemed to be
22sales.
23 "Sale at retail" shall be construed to include any transfer
24of the ownership of or title to tangible personal property to a

SB0690 Enrolled- 116 -LRB101 04451 HLH 49459 b
1purchaser, for use or consumption by any other person to whom
2such purchaser may transfer the tangible personal property
3without a valuable consideration, and to include any transfer,
4whether made for or without a valuable consideration, for
5resale in any form as tangible personal property unless made in
6compliance with Section 2c of this Act.
7 Sales of tangible personal property, which property, to the
8extent not first subjected to a use for which it was purchased,
9as an ingredient or constituent, goes into and forms a part of
10tangible personal property subsequently the subject of a "Sale
11at retail", are not sales at retail as defined in this Act:
12Provided that the property purchased is deemed to be purchased
13for the purpose of resale, despite first being used, to the
14extent to which it is resold as an ingredient of an
15intentionally produced product or byproduct of manufacturing.
16 "Sale at retail" shall be construed to include any Illinois
17florist's sales transaction in which the purchase order is
18received in Illinois by a florist and the sale is for use or
19consumption, but the Illinois florist has a florist in another
20state deliver the property to the purchaser or the purchaser's
21donee in such other state.
22 Nonreusable tangible personal property that is used by
23persons engaged in the business of operating a restaurant,
24cafeteria, or drive-in is a sale for resale when it is
25transferred to customers in the ordinary course of business as
26part of the sale of food or beverages and is used to deliver,

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1package, or consume food or beverages, regardless of where
2consumption of the food or beverages occurs. Examples of those
3items include, but are not limited to nonreusable, paper and
4plastic cups, plates, baskets, boxes, sleeves, buckets or other
5containers, utensils, straws, placemats, napkins, doggie bags,
6and wrapping or packaging materials that are transferred to
7customers as part of the sale of food or beverages in the
8ordinary course of business.
9 The purchase, employment and transfer of such tangible
10personal property as newsprint and ink for the primary purpose
11of conveying news (with or without other information) is not a
12purchase, use or sale of tangible personal property.
13 A person whose activities are organized and conducted
14primarily as a not-for-profit service enterprise, and who
15engages in selling tangible personal property at retail
16(whether to the public or merely to members and their guests)
17is engaged in the business of selling tangible personal
18property at retail with respect to such transactions, excepting
19only a person organized and operated exclusively for
20charitable, religious or educational purposes either (1), to
21the extent of sales by such person to its members, students,
22patients or inmates of tangible personal property to be used
23primarily for the purposes of such person, or (2), to the
24extent of sales by such person of tangible personal property
25which is not sold or offered for sale by persons organized for
26profit. The selling of school books and school supplies by

SB0690 Enrolled- 118 -LRB101 04451 HLH 49459 b
1schools at retail to students is not "primarily for the
2purposes of" the school which does such selling. The provisions
3of this paragraph shall not apply to nor subject to taxation
4occasional dinners, socials or similar activities of a person
5organized and operated exclusively for charitable, religious
6or educational purposes, whether or not such activities are
7open to the public.
8 A person who is the recipient of a grant or contract under
9Title VII of the Older Americans Act of 1965 (P.L. 92-258) and
10serves meals to participants in the federal Nutrition Program
11for the Elderly in return for contributions established in
12amount by the individual participant pursuant to a schedule of
13suggested fees as provided for in the federal Act is not
14engaged in the business of selling tangible personal property
15at retail with respect to such transactions.
16 "Purchaser" means anyone who, through a sale at retail,
17acquires the ownership of or title to tangible personal
18property for a valuable consideration.
19 "Reseller of motor fuel" means any person engaged in the
20business of selling or delivering or transferring title of
21motor fuel to another person other than for use or consumption.
22No person shall act as a reseller of motor fuel within this
23State without first being registered as a reseller pursuant to
24Section 2c or a retailer pursuant to Section 2a.
25 "Selling price" or the "amount of sale" means the
26consideration for a sale valued in money whether received in

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1money or otherwise, including cash, credits, property, other
2than as hereinafter provided, and services, but, prior to
3January 1, 2020, not including the value of or credit given for
4traded-in tangible personal property where the item that is
5traded-in is of like kind and character as that which is being
6sold; beginning January 1, 2020, "selling price" includes the
7portion of the value of or credit given for traded-in motor
8vehicles of the First Division as defined in Section 1-146 of
9the Illinois Vehicle Code of like kind and character as that
10which is being sold that exceeds $10,000. "Selling price" , and
11shall be determined without any deduction on account of the
12cost of the property sold, the cost of materials used, labor or
13service cost or any other expense whatsoever, but does not
14include charges that are added to prices by sellers on account
15of the seller's tax liability under this Act, or on account of
16the seller's duty to collect, from the purchaser, the tax that
17is imposed by the Use Tax Act, or, except as otherwise provided
18with respect to any cigarette tax imposed by a home rule unit,
19on account of the seller's tax liability under any local
20occupation tax administered by the Department, or, except as
21otherwise provided with respect to any cigarette tax imposed by
22a home rule unit on account of the seller's duty to collect,
23from the purchasers, the tax that is imposed under any local
24use tax administered by the Department. Effective December 1,
251985, "selling price" shall include charges that are added to
26prices by sellers on account of the seller's tax liability

SB0690 Enrolled- 120 -LRB101 04451 HLH 49459 b
1under the Cigarette Tax Act, on account of the sellers' duty to
2collect, from the purchaser, the tax imposed under the
3Cigarette Use Tax Act, and on account of the seller's duty to
4collect, from the purchaser, any cigarette tax imposed by a
5home rule unit.
6 Notwithstanding any law to the contrary, for any motor
7vehicle, as defined in Section 1-146 of the Vehicle Code, that
8is sold on or after January 1, 2015 for the purpose of leasing
9the vehicle for a defined period that is longer than one year
10and (1) is a motor vehicle of the second division that: (A) is
11a self-contained motor vehicle designed or permanently
12converted to provide living quarters for recreational,
13camping, or travel use, with direct walk through access to the
14living quarters from the driver's seat; (B) is of the van
15configuration designed for the transportation of not less than
167 nor more than 16 passengers; or (C) has a gross vehicle
17weight rating of 8,000 pounds or less or (2) is a motor vehicle
18of the first division, "selling price" or "amount of sale"
19means the consideration received by the lessor pursuant to the
20lease contract, including amounts due at lease signing and all
21monthly or other regular payments charged over the term of the
22lease. Also included in the selling price is any amount
23received by the lessor from the lessee for the leased vehicle
24that is not calculated at the time the lease is executed,
25including, but not limited to, excess mileage charges and
26charges for excess wear and tear. For sales that occur in

SB0690 Enrolled- 121 -LRB101 04451 HLH 49459 b
1Illinois, with respect to any amount received by the lessor
2from the lessee for the leased vehicle that is not calculated
3at the time the lease is executed, the lessor who purchased the
4motor vehicle does not incur the tax imposed by the Use Tax Act
5on those amounts, and the retailer who makes the retail sale of
6the motor vehicle to the lessor is not required to collect the
7tax imposed by the Use Tax Act or to pay the tax imposed by this
8Act on those amounts. However, the lessor who purchased the
9motor vehicle assumes the liability for reporting and paying
10the tax on those amounts directly to the Department in the same
11form (Illinois Retailers' Occupation Tax, and local retailers'
12occupation taxes, if applicable) in which the retailer would
13have reported and paid such tax if the retailer had accounted
14for the tax to the Department. For amounts received by the
15lessor from the lessee that are not calculated at the time the
16lease is executed, the lessor must file the return and pay the
17tax to the Department by the due date otherwise required by
18this Act for returns other than transaction returns. If the
19retailer is entitled under this Act to a discount for
20collecting and remitting the tax imposed under this Act to the
21Department with respect to the sale of the motor vehicle to the
22lessor, then the right to the discount provided in this Act
23shall be transferred to the lessor with respect to the tax paid
24by the lessor for any amount received by the lessor from the
25lessee for the leased vehicle that is not calculated at the
26time the lease is executed; provided that the discount is only

SB0690 Enrolled- 122 -LRB101 04451 HLH 49459 b
1allowed if the return is timely filed and for amounts timely
2paid. The "selling price" of a motor vehicle that is sold on or
3after January 1, 2015 for the purpose of leasing for a defined
4period of longer than one year shall not be reduced by the
5value of or credit given for traded-in tangible personal
6property owned by the lessor, nor shall it be reduced by the
7value of or credit given for traded-in tangible personal
8property owned by the lessee, regardless of whether the
9trade-in value thereof is assigned by the lessee to the lessor.
10In the case of a motor vehicle that is sold for the purpose of
11leasing for a defined period of longer than one year, the sale
12occurs at the time of the delivery of the vehicle, regardless
13of the due date of any lease payments. A lessor who incurs a
14Retailers' Occupation Tax liability on the sale of a motor
15vehicle coming off lease may not take a credit against that
16liability for the Use Tax the lessor paid upon the purchase of
17the motor vehicle (or for any tax the lessor paid with respect
18to any amount received by the lessor from the lessee for the
19leased vehicle that was not calculated at the time the lease
20was executed) if the selling price of the motor vehicle at the
21time of purchase was calculated using the definition of
22"selling price" as defined in this paragraph. Notwithstanding
23any other provision of this Act to the contrary, lessors shall
24file all returns and make all payments required under this
25paragraph to the Department by electronic means in the manner
26and form as required by the Department. This paragraph does not

SB0690 Enrolled- 123 -LRB101 04451 HLH 49459 b
1apply to leases of motor vehicles for which, at the time the
2lease is entered into, the term of the lease is not a defined
3period, including leases with a defined initial period with the
4option to continue the lease on a month-to-month or other basis
5beyond the initial defined period.
6 The phrase "like kind and character" shall be liberally
7construed (including but not limited to any form of motor
8vehicle for any form of motor vehicle, or any kind of farm or
9agricultural implement for any other kind of farm or
10agricultural implement), while not including a kind of item
11which, if sold at retail by that retailer, would be exempt from
12retailers' occupation tax and use tax as an isolated or
13occasional sale.
14 "Gross receipts" from the sales of tangible personal
15property at retail means the total selling price or the amount
16of such sales, as hereinbefore defined. In the case of charge
17and time sales, the amount thereof shall be included only as
18and when payments are received by the seller. Receipts or other
19consideration derived by a seller from the sale, transfer or
20assignment of accounts receivable to a wholly owned subsidiary
21will not be deemed payments prior to the time the purchaser
22makes payment on such accounts.
23 "Department" means the Department of Revenue.
24 "Person" means any natural individual, firm, partnership,
25association, joint stock company, joint adventure, public or
26private corporation, limited liability company, or a receiver,

SB0690 Enrolled- 124 -LRB101 04451 HLH 49459 b
1executor, trustee, guardian or other representative appointed
2by order of any court.
3 The isolated or occasional sale of tangible personal
4property at retail by a person who does not hold himself out as
5being engaged (or who does not habitually engage) in selling
6such tangible personal property at retail, or a sale through a
7bulk vending machine, does not constitute engaging in a
8business of selling such tangible personal property at retail
9within the meaning of this Act; provided that any person who is
10engaged in a business which is not subject to the tax imposed
11by this Act because of involving the sale of or a contract to
12sell real estate or a construction contract to improve real
13estate or a construction contract to engineer, install, and
14maintain an integrated system of products, but who, in the
15course of conducting such business, transfers tangible
16personal property to users or consumers in the finished form in
17which it was purchased, and which does not become real estate
18or was not engineered and installed, under any provision of a
19construction contract or real estate sale or real estate sales
20agreement entered into with some other person arising out of or
21because of such nontaxable business, is engaged in the business
22of selling tangible personal property at retail to the extent
23of the value of the tangible personal property so transferred.
24If, in such a transaction, a separate charge is made for the
25tangible personal property so transferred, the value of such
26property, for the purpose of this Act, shall be the amount so

SB0690 Enrolled- 125 -LRB101 04451 HLH 49459 b
1separately charged, but not less than the cost of such property
2to the transferor; if no separate charge is made, the value of
3such property, for the purposes of this Act, is the cost to the
4transferor of such tangible personal property. Construction
5contracts for the improvement of real estate consisting of
6engineering, installation, and maintenance of voice, data,
7video, security, and all telecommunication systems do not
8constitute engaging in a business of selling tangible personal
9property at retail within the meaning of this Act if they are
10sold at one specified contract price.
11 A person who holds himself or herself out as being engaged
12(or who habitually engages) in selling tangible personal
13property at retail is a person engaged in the business of
14selling tangible personal property at retail hereunder with
15respect to such sales (and not primarily in a service
16occupation) notwithstanding the fact that such person designs
17and produces such tangible personal property on special order
18for the purchaser and in such a way as to render the property
19of value only to such purchaser, if such tangible personal
20property so produced on special order serves substantially the
21same function as stock or standard items of tangible personal
22property that are sold at retail.
23 Persons who engage in the business of transferring tangible
24personal property upon the redemption of trading stamps are
25engaged in the business of selling such property at retail and
26shall be liable for and shall pay the tax imposed by this Act

SB0690 Enrolled- 126 -LRB101 04451 HLH 49459 b
1on the basis of the retail value of the property transferred
2upon redemption of such stamps.
3 "Bulk vending machine" means a vending machine, containing
4unsorted confections, nuts, toys, or other items designed
5primarily to be used or played with by children which, when a
6coin or coins of a denomination not larger than $0.50 are
7inserted, are dispensed in equal portions, at random and
8without selection by the customer.
9 "Remote retailer" means a retailer located outside of this
10State that does not maintain within this State, directly or by
11a subsidiary, an office, distribution house, sales house,
12warehouse or other place of business, or any agent or other
13representative operating within this State under the authority
14of the retailer or its subsidiary, irrespective of whether such
15place of business or agent is located here permanently or
16temporarily or whether such retailer or subsidiary is licensed
17to do business in this State.
18(Source: P.A. 98-628, eff. 1-1-15; 98-1080, eff. 8-26-14.)
19 (35 ILCS 120/2) (from Ch. 120, par. 441)
20 Sec. 2. Tax imposed.
21 (a) A tax is imposed upon persons engaged in the business
22of selling at retail tangible personal property, including
23computer software, and including photographs, negatives, and
24positives that are the product of photoprocessing, but not
25including products of photoprocessing produced for use in

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1motion pictures for public commercial exhibition. Beginning
2January 1, 2001, prepaid telephone calling arrangements shall
3be considered tangible personal property subject to the tax
4imposed under this Act regardless of the form in which those
5arrangements may be embodied, transmitted, or fixed by any
6method now known or hereafter developed. Sales of (1)
7electricity delivered to customers by wire; (2) natural or
8artificial gas that is delivered to customers through pipes,
9pipelines, or mains; and (3) water that is delivered to
10customers through pipes, pipelines, or mains are not subject to
11tax under this Act. The provisions of this amendatory Act of
12the 98th General Assembly are declaratory of existing law as to
13the meaning and scope of this Act.
14 (b) Beginning on July 1, 2020, a remote retailer is engaged
15in the occupation of selling at retail in Illinois for purposes
16of this Act, if:
17 (1) the cumulative gross receipts from sales of
18 tangible personal property to purchasers in Illinois are
19 $100,000 or more; or
20 (2) the retailer enters into 200 or more separate
21 transactions for the sale of tangible personal property to
22 purchasers in Illinois.
23 Remote retailers that meet or exceed the threshold in
24either paragraph (1) or (2) above shall be liable for all
25applicable State and locally imposed retailers' occupation
26taxes on all retail sales to Illinois purchasers.

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1 The remote retailer shall determine on a quarterly basis,
2ending on the last day of March, June, September, and December,
3whether he or she meets the criteria of either paragraph (1) or
4(2) of this subsection for the preceding 12-month period. If
5the retailer meets the criteria of either paragraph (1) or (2)
6for a 12-month period, he or she is considered a retailer
7maintaining a place of business in this State and is required
8to collect and remit the tax imposed under this Act and all
9retailers' occupation tax imposed by local taxing
10jurisdictions in Illinois, provided such local taxes are
11administered by the Department, and to file all applicable
12returns for one year. At the end of that one-year period, the
13retailer shall determine whether the retailer met the criteria
14of either paragraph (1) or (2) for the preceding 12-month
15period. If the retailer met the criteria in either paragraph
16(1) or (2) for the preceding 12-month period, he or she is
17considered a retailer maintaining a place of business in this
18State and is required to collect and remit all applicable State
19and local retailers' occupation taxes and file returns for the
20subsequent year. If, at the end of a one-year period, a
21retailer that was required to collect and remit the tax imposed
22under this Act determines that he or she did not meet the
23criteria in either paragraph (1) or (2) during the preceding
2412-month period, then the retailer shall subsequently
25determine on a quarterly basis, ending on the last day of
26March, June, September, and December, whether he or she meets

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1the criteria of either paragraph (1) or (2) for the preceding
212-month period.
3(Source: P.A. 98-583, eff. 1-1-14.)
4 (35 ILCS 120/2-5)
5 Sec. 2-5. Exemptions. Gross receipts from proceeds from the
6sale of the following tangible personal property are exempt
7from the tax imposed by this Act:
8 (1) Farm chemicals.
9 (2) Farm machinery and equipment, both new and used,
10 including that manufactured on special order, certified by
11 the purchaser to be used primarily for production
12 agriculture or State or federal agricultural programs,
13 including individual replacement parts for the machinery
14 and equipment, including machinery and equipment purchased
15 for lease, and including implements of husbandry defined in
16 Section 1-130 of the Illinois Vehicle Code, farm machinery
17 and agricultural chemical and fertilizer spreaders, and
18 nurse wagons required to be registered under Section 3-809
19 of the Illinois Vehicle Code, but excluding other motor
20 vehicles required to be registered under the Illinois
21 Vehicle Code. Horticultural polyhouses or hoop houses used
22 for propagating, growing, or overwintering plants shall be
23 considered farm machinery and equipment under this item
24 (2). Agricultural chemical tender tanks and dry boxes shall
25 include units sold separately from a motor vehicle required

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1 to be licensed and units sold mounted on a motor vehicle
2 required to be licensed, if the selling price of the tender
3 is separately stated.
4 Farm machinery and equipment shall include precision
5 farming equipment that is installed or purchased to be
6 installed on farm machinery and equipment including, but
7 not limited to, tractors, harvesters, sprayers, planters,
8 seeders, or spreaders. Precision farming equipment
9 includes, but is not limited to, soil testing sensors,
10 computers, monitors, software, global positioning and
11 mapping systems, and other such equipment.
12 Farm machinery and equipment also includes computers,
13 sensors, software, and related equipment used primarily in
14 the computer-assisted operation of production agriculture
15 facilities, equipment, and activities such as, but not
16 limited to, the collection, monitoring, and correlation of
17 animal and crop data for the purpose of formulating animal
18 diets and agricultural chemicals. This item (2) is exempt
19 from the provisions of Section 2-70.
20 (3) Until July 1, 2003, distillation machinery and
21 equipment, sold as a unit or kit, assembled or installed by
22 the retailer, certified by the user to be used only for the
23 production of ethyl alcohol that will be used for
24 consumption as motor fuel or as a component of motor fuel
25 for the personal use of the user, and not subject to sale
26 or resale.

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1 (4) Until July 1, 2003 and beginning again September 1,
2 2004 through August 30, 2014, graphic arts machinery and
3 equipment, including repair and replacement parts, both
4 new and used, and including that manufactured on special
5 order or purchased for lease, certified by the purchaser to
6 be used primarily for graphic arts production. Equipment
7 includes chemicals or chemicals acting as catalysts but
8 only if the chemicals or chemicals acting as catalysts
9 effect a direct and immediate change upon a graphic arts
10 product. Beginning on July 1, 2017, graphic arts machinery
11 and equipment is included in the manufacturing and
12 assembling machinery and equipment exemption under
13 paragraph (14).
14 (5) A motor vehicle that is used for automobile
15 renting, as defined in the Automobile Renting Occupation
16 and Use Tax Act. This paragraph is exempt from the
17 provisions of Section 2-70.
18 (6) Personal property sold by a teacher-sponsored
19 student organization affiliated with an elementary or
20 secondary school located in Illinois.
21 (7) Until July 1, 2003, proceeds of that portion of the
22 selling price of a passenger car the sale of which is
23 subject to the Replacement Vehicle Tax.
24 (8) Personal property sold to an Illinois county fair
25 association for use in conducting, operating, or promoting
26 the county fair.

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

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1 not-for-profit corporation, society, association,
2 foundation, institution, or organization that has no
3 compensated officers or employees and that is organized and
4 operated primarily for the recreation of persons 55 years
5 of age or older. A limited liability company may qualify
6 for the exemption under this paragraph only if the limited
7 liability company is organized and operated exclusively
8 for educational purposes. On and after July 1, 1987,
9 however, no entity otherwise eligible for this exemption
10 shall make tax-free purchases unless it has an active
11 identification number issued by the Department.
12 (12) (Blank).
13 (12-5) On and after July 1, 2003 and through June 30,
14 2004, motor vehicles of the second division with a gross
15 vehicle weight in excess of 8,000 pounds that are subject
16 to the commercial distribution fee imposed under Section
17 3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
18 2004 and through June 30, 2005, the use in this State of
19 motor vehicles of the second division: (i) with a gross
20 vehicle weight rating in excess of 8,000 pounds; (ii) that
21 are subject to the commercial distribution fee imposed
22 under Section 3-815.1 of the Illinois Vehicle Code; and
23 (iii) that are primarily used for commercial purposes.
24 Through June 30, 2005, this exemption applies to repair and
25 replacement parts added after the initial purchase of such
26 a motor vehicle if that motor vehicle is used in a manner

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1 that would qualify for the rolling stock exemption
2 otherwise provided for in this Act. For purposes of this
3 paragraph, "used for commercial purposes" means the
4 transportation of persons or property in furtherance of any
5 commercial or industrial enterprise whether for-hire or
6 not.
7 (13) Proceeds from sales to owners, lessors, or
8 shippers of tangible personal property that is utilized by
9 interstate carriers for hire for use as rolling stock
10 moving in interstate commerce and equipment operated by a
11 telecommunications provider, licensed as a common carrier
12 by the Federal Communications Commission, which is
13 permanently installed in or affixed to aircraft moving in
14 interstate commerce.
15 (14) Machinery and equipment that will be used by the
16 purchaser, or a lessee of the purchaser, primarily in the
17 process of manufacturing or assembling tangible personal
18 property for wholesale or retail sale or lease, whether the
19 sale or lease is made directly by the manufacturer or by
20 some other person, whether the materials used in the
21 process are owned by the manufacturer or some other person,
22 or whether the sale or lease is made apart from or as an
23 incident to the seller's engaging in the service occupation
24 of producing machines, tools, dies, jigs, patterns,
25 gauges, or other similar items of no commercial value on
26 special order for a particular purchaser. The exemption

SB0690 Enrolled- 135 -LRB101 04451 HLH 49459 b
1 provided by this paragraph (14) does not include machinery
2 and equipment used in (i) the generation of electricity for
3 wholesale or retail sale; (ii) the generation or treatment
4 of natural or artificial gas for wholesale or retail sale
5 that is delivered to customers through pipes, pipelines, or
6 mains; or (iii) the treatment of water for wholesale or
7 retail sale that is delivered to customers through pipes,
8 pipelines, or mains. The provisions of Public Act 98-583
9 are declaratory of existing law as to the meaning and scope
10 of this exemption. Beginning on July 1, 2017, the exemption
11 provided by this paragraph (14) includes, but is not
12 limited to, graphic arts machinery and equipment, as
13 defined in paragraph (4) of this Section.
14 (15) Proceeds of mandatory service charges separately
15 stated on customers' bills for purchase and consumption of
16 food and beverages, to the extent that the proceeds of the
17 service charge are in fact turned over as tips or as a
18 substitute for tips to the employees who participate
19 directly in preparing, serving, hosting or cleaning up the
20 food or beverage function with respect to which the service
21 charge is imposed.
22 (16) Tangible personal property sold to a purchaser if
23 the purchaser is exempt from use tax by operation of
24 federal law. This paragraph is exempt from the provisions
25 of Section 2-70.
26 (17) Tangible personal property sold to a common

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1 carrier by rail or motor that receives the physical
2 possession of the property in Illinois and that transports
3 the property, or shares with another common carrier in the
4 transportation of the property, out of Illinois on a
5 standard uniform bill of lading showing the seller of the
6 property as the shipper or consignor of the property to a
7 destination outside Illinois, for use outside Illinois.
8 (18) Legal tender, currency, medallions, or gold or
9 silver coinage issued by the State of Illinois, the
10 government of the United States of America, or the
11 government of any foreign country, and bullion.
12 (19) Until July 1, 2003, oil field exploration,
13 drilling, and production equipment, including (i) rigs and
14 parts of rigs, rotary rigs, cable tool rigs, and workover
15 rigs, (ii) pipe and tubular goods, including casing and
16 drill strings, (iii) pumps and pump-jack units, (iv)
17 storage tanks and flow lines, (v) any individual
18 replacement part for oil field exploration, drilling, and
19 production equipment, and (vi) machinery and equipment
20 purchased for lease; but excluding motor vehicles required
21 to be registered under the Illinois Vehicle Code.
22 (20) Photoprocessing machinery and equipment,
23 including repair and replacement parts, both new and used,
24 including that manufactured on special order, certified by
25 the purchaser to be used primarily for photoprocessing, and
26 including photoprocessing machinery and equipment

SB0690 Enrolled- 137 -LRB101 04451 HLH 49459 b
1 purchased for lease.
2 (21) Until July 1, 2023, coal and aggregate
3 exploration, mining, off-highway hauling, processing,
4 maintenance, and reclamation equipment, including
5 replacement parts and equipment, and including equipment
6 purchased for lease, but excluding motor vehicles required
7 to be registered under the Illinois Vehicle Code. The
8 changes made to this Section by Public Act 97-767 apply on
9 and after July 1, 2003, but no claim for credit or refund
10 is allowed on or after August 16, 2013 (the effective date
11 of Public Act 98-456) for such taxes paid during the period
12 beginning July 1, 2003 and ending on August 16, 2013 (the
13 effective date of Public Act 98-456).
14 (22) Until June 30, 2013, fuel and petroleum products
15 sold to or used by an air carrier, certified by the carrier
16 to be used for consumption, shipment, or storage in the
17 conduct of its business as an air common carrier, for a
18 flight destined for or returning from a location or
19 locations outside the United States without regard to
20 previous or subsequent domestic stopovers.
21 Beginning July 1, 2013, fuel and petroleum products
22 sold to or used by an air carrier, certified by the carrier
23 to be used for consumption, shipment, or storage in the
24 conduct of its business as an air common carrier, for a
25 flight that (i) is engaged in foreign trade or is engaged
26 in trade between the United States and any of its

SB0690 Enrolled- 138 -LRB101 04451 HLH 49459 b
1 possessions and (ii) transports at least one individual or
2 package for hire from the city of origination to the city
3 of final destination on the same aircraft, without regard
4 to a change in the flight number of that aircraft.
5 (23) A transaction in which the purchase order is
6 received by a florist who is located outside Illinois, but
7 who has a florist located in Illinois deliver the property
8 to the purchaser or the purchaser's donee in Illinois.
9 (24) Fuel consumed or used in the operation of ships,
10 barges, or vessels that are used primarily in or for the
11 transportation of property or the conveyance of persons for
12 hire on rivers bordering on this State if the fuel is
13 delivered by the seller to the purchaser's barge, ship, or
14 vessel while it is afloat upon that bordering river.
15 (25) Except as provided in item (25-5) of this Section,
16 a motor vehicle sold in this State to a nonresident even
17 though the motor vehicle is delivered to the nonresident in
18 this State, if the motor vehicle is not to be titled in
19 this State, and if a drive-away permit is issued to the
20 motor vehicle as provided in Section 3-603 of the Illinois
21 Vehicle Code or if the nonresident purchaser has vehicle
22 registration plates to transfer to the motor vehicle upon
23 returning to his or her home state. The issuance of the
24 drive-away permit or having the out-of-state registration
25 plates to be transferred is prima facie evidence that the
26 motor vehicle will not be titled in this State.

SB0690 Enrolled- 139 -LRB101 04451 HLH 49459 b
1 (25-5) The exemption under item (25) does not apply if
2 the state in which the motor vehicle will be titled does
3 not allow a reciprocal exemption for a motor vehicle sold
4 and delivered in that state to an Illinois resident but
5 titled in Illinois. The tax collected under this Act on the
6 sale of a motor vehicle in this State to a resident of
7 another state that does not allow a reciprocal exemption
8 shall be imposed at a rate equal to the state's rate of tax
9 on taxable property in the state in which the purchaser is
10 a resident, except that the tax shall not exceed the tax
11 that would otherwise be imposed under this Act. At the time
12 of the sale, the purchaser shall execute a statement,
13 signed under penalty of perjury, of his or her intent to
14 title the vehicle in the state in which the purchaser is a
15 resident within 30 days after the sale and of the fact of
16 the payment to the State of Illinois of tax in an amount
17 equivalent to the state's rate of tax on taxable property
18 in his or her state of residence and shall submit the
19 statement to the appropriate tax collection agency in his
20 or her state of residence. In addition, the retailer must
21 retain a signed copy of the statement in his or her
22 records. Nothing in this item shall be construed to require
23 the removal of the vehicle from this state following the
24 filing of an intent to title the vehicle in the purchaser's
25 state of residence if the purchaser titles the vehicle in
26 his or her state of residence within 30 days after the date

SB0690 Enrolled- 140 -LRB101 04451 HLH 49459 b
1 of sale. The tax collected under this Act in accordance
2 with this item (25-5) shall be proportionately distributed
3 as if the tax were collected at the 6.25% general rate
4 imposed under this Act.
5 (25-7) Beginning on July 1, 2007, no tax is imposed
6 under this Act on the sale of an aircraft, as defined in
7 Section 3 of the Illinois Aeronautics Act, if all of the
8 following conditions are met:
9 (1) the aircraft leaves this State within 15 days
10 after the later of either the issuance of the final
11 billing for the sale of the aircraft, or the authorized
12 approval for return to service, completion of the
13 maintenance record entry, and completion of the test
14 flight and ground test for inspection, as required by
15 14 C.F.R. 91.407;
16 (2) the aircraft is not based or registered in this
17 State after the sale of the aircraft; and
18 (3) the seller retains in his or her books and
19 records and provides to the Department a signed and
20 dated certification from the purchaser, on a form
21 prescribed by the Department, certifying that the
22 requirements of this item (25-7) are met. The
23 certificate must also include the name and address of
24 the purchaser, the address of the location where the
25 aircraft is to be titled or registered, the address of
26 the primary physical location of the aircraft, and

SB0690 Enrolled- 141 -LRB101 04451 HLH 49459 b
1 other information that the Department may reasonably
2 require.
3 For purposes of this item (25-7):
4 "Based in this State" means hangared, stored, or
5 otherwise used, excluding post-sale customizations as
6 defined in this Section, for 10 or more days in each
7 12-month period immediately following the date of the sale
8 of the aircraft.
9 "Registered in this State" means an aircraft
10 registered with the Department of Transportation,
11 Aeronautics Division, or titled or registered with the
12 Federal Aviation Administration to an address located in
13 this State.
14 This paragraph (25-7) is exempt from the provisions of
15 Section 2-70.
16 (26) Semen used for artificial insemination of
17 livestock for direct agricultural production.
18 (27) Horses, or interests in horses, registered with
19 and meeting the requirements of any of the Arabian Horse
20 Club Registry of America, Appaloosa Horse Club, American
21 Quarter Horse Association, United States Trotting
22 Association, or Jockey Club, as appropriate, used for
23 purposes of breeding or racing for prizes. This item (27)
24 is exempt from the provisions of Section 2-70, and the
25 exemption provided for under this item (27) applies for all
26 periods beginning May 30, 1995, but no claim for credit or

SB0690 Enrolled- 142 -LRB101 04451 HLH 49459 b
1 refund is allowed on or after January 1, 2008 (the
2 effective date of Public Act 95-88) for such taxes paid
3 during the period beginning May 30, 2000 and ending on
4 January 1, 2008 (the effective date of Public Act 95-88).
5 (28) Computers and communications equipment utilized
6 for any hospital purpose and equipment used in the
7 diagnosis, analysis, or treatment of hospital patients
8 sold to a lessor who leases the equipment, under a lease of
9 one year or longer executed or in effect at the time of the
10 purchase, to a hospital that has been issued an active tax
11 exemption identification number by the Department under
12 Section 1g of this Act.
13 (29) Personal property sold to a lessor who leases the
14 property, under a lease of one year or longer executed or
15 in effect at the time of the purchase, to a governmental
16 body that has been issued an active tax exemption
17 identification number by the Department under Section 1g of
18 this Act.
19 (30) Beginning with taxable years ending on or after
20 December 31, 1995 and ending with taxable years ending on
21 or before December 31, 2004, personal property that is
22 donated for disaster relief to be used in a State or
23 federally declared disaster area in Illinois or bordering
24 Illinois by a manufacturer or retailer that is registered
25 in this State to a corporation, society, association,
26 foundation, or institution that has been issued a sales tax

SB0690 Enrolled- 143 -LRB101 04451 HLH 49459 b
1 exemption identification number by the Department that
2 assists victims of the disaster who reside within the
3 declared disaster area.
4 (31) Beginning with taxable years ending on or after
5 December 31, 1995 and ending with taxable years ending on
6 or before December 31, 2004, personal property that is used
7 in the performance of infrastructure repairs in this State,
8 including but not limited to municipal roads and streets,
9 access roads, bridges, sidewalks, waste disposal systems,
10 water and sewer line extensions, water distribution and
11 purification facilities, storm water drainage and
12 retention facilities, and sewage treatment facilities,
13 resulting from a State or federally declared disaster in
14 Illinois or bordering Illinois when such repairs are
15 initiated on facilities located in the declared disaster
16 area within 6 months after the disaster.
17 (32) Beginning July 1, 1999, game or game birds sold at
18 a "game breeding and hunting preserve area" as that term is
19 used in the Wildlife Code. This paragraph is exempt from
20 the provisions of Section 2-70.
21 (33) A motor vehicle, as that term is defined in
22 Section 1-146 of the Illinois Vehicle Code, that is donated
23 to a corporation, limited liability company, society,
24 association, foundation, or institution that is determined
25 by the Department to be organized and operated exclusively
26 for educational purposes. For purposes of this exemption,

SB0690 Enrolled- 144 -LRB101 04451 HLH 49459 b
1 "a corporation, limited liability company, society,
2 association, foundation, or institution organized and
3 operated exclusively for educational purposes" means all
4 tax-supported public schools, private schools that offer
5 systematic instruction in useful branches of learning by
6 methods common to public schools and that compare favorably
7 in their scope and intensity with the course of study
8 presented in tax-supported schools, and vocational or
9 technical schools or institutes organized and operated
10 exclusively to provide a course of study of not less than 6
11 weeks duration and designed to prepare individuals to
12 follow a trade or to pursue a manual, technical,
13 mechanical, industrial, business, or commercial
14 occupation.
15 (34) Beginning January 1, 2000, personal property,
16 including food, purchased through fundraising events for
17 the benefit of a public or private elementary or secondary
18 school, a group of those schools, or one or more school
19 districts if the events are sponsored by an entity
20 recognized by the school district that consists primarily
21 of volunteers and includes parents and teachers of the
22 school children. This paragraph does not apply to
23 fundraising events (i) for the benefit of private home
24 instruction or (ii) for which the fundraising entity
25 purchases the personal property sold at the events from
26 another individual or entity that sold the property for the

SB0690 Enrolled- 145 -LRB101 04451 HLH 49459 b
1 purpose of resale by the fundraising entity and that
2 profits from the sale to the fundraising entity. This
3 paragraph is exempt from the provisions of Section 2-70.
4 (35) Beginning January 1, 2000 and through December 31,
5 2001, new or used automatic vending machines that prepare
6 and serve hot food and beverages, including coffee, soup,
7 and other items, and replacement parts for these machines.
8 Beginning January 1, 2002 and through June 30, 2003,
9 machines and parts for machines used in commercial,
10 coin-operated amusement and vending business if a use or
11 occupation tax is paid on the gross receipts derived from
12 the use of the commercial, coin-operated amusement and
13 vending machines. This paragraph is exempt from the
14 provisions of Section 2-70.
15 (35-5) Beginning August 23, 2001 and through June 30,
16 2016, food for human consumption that is to be consumed off
17 the premises where it is sold (other than alcoholic
18 beverages, soft drinks, and food that has been prepared for
19 immediate consumption) and prescription and
20 nonprescription medicines, drugs, medical appliances, and
21 insulin, urine testing materials, syringes, and needles
22 used by diabetics, for human use, when purchased for use by
23 a person receiving medical assistance under Article V of
24 the Illinois Public Aid Code who resides in a licensed
25 long-term care facility, as defined in the Nursing Home
26 Care Act, or a licensed facility as defined in the ID/DD

SB0690 Enrolled- 146 -LRB101 04451 HLH 49459 b
1 Community Care Act, the MC/DD Act, or the Specialized
2 Mental Health Rehabilitation Act of 2013.
3 (36) Beginning August 2, 2001, computers and
4 communications equipment utilized for any hospital purpose
5 and equipment used in the diagnosis, analysis, or treatment
6 of hospital patients sold to a lessor who leases the
7 equipment, under a lease of one year or longer executed or
8 in effect at the time of the purchase, to a hospital that
9 has been issued an active tax exemption identification
10 number by the Department under Section 1g of this Act. This
11 paragraph is exempt from the provisions of Section 2-70.
12 (37) Beginning August 2, 2001, personal property sold
13 to a lessor who leases the property, under a lease of one
14 year or longer executed or in effect at the time of the
15 purchase, to a governmental body that has been issued an
16 active tax exemption identification number by the
17 Department under Section 1g of this Act. This paragraph is
18 exempt from the provisions of Section 2-70.
19 (38) Beginning on January 1, 2002 and through June 30,
20 2016, tangible personal property purchased from an
21 Illinois retailer by a taxpayer engaged in centralized
22 purchasing activities in Illinois who will, upon receipt of
23 the property in Illinois, temporarily store the property in
24 Illinois (i) for the purpose of subsequently transporting
25 it outside this State for use or consumption thereafter
26 solely outside this State or (ii) for the purpose of being

SB0690 Enrolled- 147 -LRB101 04451 HLH 49459 b
1 processed, fabricated, or manufactured into, attached to,
2 or incorporated into other tangible personal property to be
3 transported outside this State and thereafter used or
4 consumed solely outside this State. The Director of Revenue
5 shall, pursuant to rules adopted in accordance with the
6 Illinois Administrative Procedure Act, issue a permit to
7 any taxpayer in good standing with the Department who is
8 eligible for the exemption under this paragraph (38). The
9 permit issued under this paragraph (38) shall authorize the
10 holder, to the extent and in the manner specified in the
11 rules adopted under this Act, to purchase tangible personal
12 property from a retailer exempt from the taxes imposed by
13 this Act. Taxpayers shall maintain all necessary books and
14 records to substantiate the use and consumption of all such
15 tangible personal property outside of the State of
16 Illinois.
17 (39) Beginning January 1, 2008, tangible personal
18 property used in the construction or maintenance of a
19 community water supply, as defined under Section 3.145 of
20 the Environmental Protection Act, that is operated by a
21 not-for-profit corporation that holds a valid water supply
22 permit issued under Title IV of the Environmental
23 Protection Act. This paragraph is exempt from the
24 provisions of Section 2-70.
25 (40) Beginning January 1, 2010, materials, parts,
26 equipment, components, and furnishings incorporated into

SB0690 Enrolled- 148 -LRB101 04451 HLH 49459 b
1 or upon an aircraft as part of the modification,
2 refurbishment, completion, replacement, repair, or
3 maintenance of the aircraft. This exemption includes
4 consumable supplies used in the modification,
5 refurbishment, completion, replacement, repair, and
6 maintenance of aircraft, but excludes any materials,
7 parts, equipment, components, and consumable supplies used
8 in the modification, replacement, repair, and maintenance
9 of aircraft engines or power plants, whether such engines
10 or power plants are installed or uninstalled upon any such
11 aircraft. "Consumable supplies" include, but are not
12 limited to, adhesive, tape, sandpaper, general purpose
13 lubricants, cleaning solution, latex gloves, and
14 protective films. This exemption applies only to the sale
15 of qualifying tangible personal property to persons who
16 modify, refurbish, complete, replace, or maintain an
17 aircraft and who (i) hold an Air Agency Certificate and are
18 empowered to operate an approved repair station by the
19 Federal Aviation Administration, (ii) have a Class IV
20 Rating, and (iii) conduct operations in accordance with
21 Part 145 of the Federal Aviation Regulations. The exemption
22 does not include aircraft operated by a commercial air
23 carrier providing scheduled passenger air service pursuant
24 to authority issued under Part 121 or Part 129 of the
25 Federal Aviation Regulations. The changes made to this
26 paragraph (40) by Public Act 98-534 are declarative of

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1 existing law.
2 (41) Tangible personal property sold to a
3 public-facilities corporation, as described in Section
4 11-65-10 of the Illinois Municipal Code, for purposes of
5 constructing or furnishing a municipal convention hall,
6 but only if the legal title to the municipal convention
7 hall is transferred to the municipality without any further
8 consideration by or on behalf of the municipality at the
9 time of the completion of the municipal convention hall or
10 upon the retirement or redemption of any bonds or other
11 debt instruments issued by the public-facilities
12 corporation in connection with the development of the
13 municipal convention hall. This exemption includes
14 existing public-facilities corporations as provided in
15 Section 11-65-25 of the Illinois Municipal Code. This
16 paragraph is exempt from the provisions of Section 2-70.
17 (42) Beginning January 1, 2017, menstrual pads,
18 tampons, and menstrual cups.
19 (43) Merchandise that is subject to the Rental Purchase
20 Agreement Occupation and Use Tax. The purchaser must
21 certify that the item is purchased to be rented subject to
22 a rental purchase agreement, as defined in the Rental
23 Purchase Agreement Act, and provide proof of registration
24 under the Rental Purchase Agreement Occupation and Use Tax
25 Act. This paragraph is exempt from the provisions of
26 Section 2-70.

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1 (44) Qualified tangible personal property used in the
2 construction or operation of a data center that has been
3 granted a certificate of exemption by the Department of
4 Commerce and Economic Opportunity, whether that tangible
5 personal property is purchased by the owner, operator, or
6 tenant of the data center or by a contractor or
7 subcontractor of the owner, operator, or tenant. Data
8 centers that would have qualified for a certificate of
9 exemption prior to January 1, 2020 had this amendatory Act
10 of the 101st General Assembly been in effect, may apply for
11 and obtain an exemption for subsequent purchases of
12 computer equipment or enabling software purchased or
13 leased to upgrade, supplement, or replace computer
14 equipment or enabling software purchased or leased in the
15 original investment that would have qualified.
16 The Department of Commerce and Economic Opportunity
17 shall grant a certificate of exemption under this item (44)
18 to qualified data centers as defined by Section 605-1025 of
19 the Department of Commerce and Economic Opportunity Law of
20 the Civil Administrative Code of Illinois.
21 For the purposes of this item (44):
22 "Data center" means a building or a series of
23 buildings rehabilitated or constructed to house
24 working servers in one physical location or multiple
25 sites within the State of Illinois.
26 "Qualified tangible personal property" means:

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1 electrical systems and equipment; climate control and
2 chilling equipment and systems; mechanical systems and
3 equipment; monitoring and secure systems; emergency
4 generators; hardware; computers; servers; data storage
5 devices; network connectivity equipment; racks;
6 cabinets; telecommunications cabling infrastructure;
7 raised floor systems; peripheral components or
8 systems; software; mechanical, electrical, or plumbing
9 systems; battery systems; cooling systems and towers;
10 temperature control systems; other cabling; and other
11 data center infrastructure equipment and systems
12 necessary to operate qualified tangible personal
13 property, including fixtures; and component parts of
14 any of the foregoing, including installation,
15 maintenance, repair, refurbishment, and replacement of
16 qualified tangible personal property to generate,
17 transform, transmit, distribute, or manage electricity
18 necessary to operate qualified tangible personal
19 property; and all other tangible personal property
20 that is essential to the operations of a computer data
21 center. The term "qualified tangible personal
22 property" also includes building materials physically
23 incorporated 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

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1 Commerce and Economic Opportunity.
2 This item (44) is exempt from the provisions of Section
3 2-70.
4(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
5100-22, eff. 7-6-17; 100-321, eff. 8-24-17; 100-437, eff.
61-1-18; 100-594, eff. 6-29-18; 100-863, eff. 8-14-18;
7100-1171, eff. 1-4-19; revised 1-8-19.)
8 (35 ILCS 120/2-12)
9 Sec. 2-12. Location where retailer is deemed to be engaged
10in the business of selling. The purpose of this Section is to
11specify where a retailer is deemed to be engaged in the
12business of selling tangible personal property for the purposes
13of this Act, the Use Tax Act, the Service Use Tax Act, and the
14Service Occupation Tax Act, and for the purpose of collecting
15any other local retailers' occupation tax administered by the
16Department. This Section applies only with respect to the
17particular selling activities described in the following
18paragraphs. The provisions of this Section are not intended to,
19and shall not be interpreted to, affect where a retailer is
20deemed to be engaged in the business of selling with respect to
21any activity that is not specifically described in the
22following paragraphs.
23 (1) If a purchaser who is present at the retailer's
24 place of business, having no prior commitment to the
25 retailer, agrees to purchase and makes payment for tangible

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1 personal property at the retailer's place of business, then
2 the transaction shall be deemed an over-the-counter sale
3 occurring at the retailer's same place of business where
4 the purchaser was present and made payment for that
5 tangible personal property if the retailer regularly
6 stocks the purchased tangible personal property or similar
7 tangible personal property in the quantity, or similar
8 quantity, for sale at the retailer's same place of business
9 and then either (i) the purchaser takes possession of the
10 tangible personal property at the same place of business or
11 (ii) the retailer delivers or arranges for the tangible
12 personal property to be delivered to the purchaser.
13 (2) If a purchaser, having no prior commitment to the
14 retailer, agrees to purchase tangible personal property
15 and makes payment over the phone, in writing, or via the
16 Internet and takes possession of the tangible personal
17 property at the retailer's place of business, then the sale
18 shall be deemed to have occurred at the retailer's place of
19 business where the purchaser takes possession of the
20 property if the retailer regularly stocks the item or
21 similar items in the quantity, or similar quantities,
22 purchased by the purchaser.
23 (3) A retailer is deemed to be engaged in the business
24 of selling food, beverages, or other tangible personal
25 property through a vending machine at the location where
26 the vending machine is located at the time the sale is made

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1 if (i) the vending machine is a device operated by coin,
2 currency, credit card, token, coupon or similar device; (2)
3 the food, beverage or other tangible personal property is
4 contained within the vending machine and dispensed from the
5 vending machine; and (3) the purchaser takes possession of
6 the purchased food, beverage or other tangible personal
7 property immediately.
8 (4) Minerals. A producer of coal or other mineral mined
9 in Illinois is deemed to be engaged in the business of
10 selling at the place where the coal or other mineral mined
11 in Illinois is extracted from the earth. With respect to
12 minerals (i) the term "extracted from the earth" means the
13 location at which the coal or other mineral is extracted
14 from the mouth of the mine, and (ii) a "mineral" includes
15 not only coal, but also oil, sand, stone taken from a
16 quarry, gravel and any other thing commonly regarded as a
17 mineral and extracted from the earth. This paragraph does
18 not apply to coal or another mineral when it is delivered
19 or shipped by the seller to the purchaser at a point
20 outside Illinois so that the sale is exempt under the
21 United States Constitution as a sale in interstate or
22 foreign commerce.
23 (5) A retailer selling tangible personal property to a
24 nominal lessee or bailee pursuant to a lease with a dollar
25 or other nominal option to purchase is engaged in the
26 business of selling at the location where the property is

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1 first delivered to the lessee or bailee for its intended
2 use.
3 (6) Beginning on July 1, 2020, for the purposes of
4 determining the correct local retailers' occupation tax
5 rate, retail sales made by a remote retailer that meet or
6 exceed the thresholds established in paragraph (1) or (2)
7 of subsection (b) of Section 2 of this Act shall be deemed
8 to be made at the Illinois location to which the tangible
9 personal property is shipped or delivered or at which
10 possession is taken by the purchaser.
11(Source: P.A. 98-1098, eff. 8-26-14; 99-126, eff. 7-23-15.)
12 (35 ILCS 120/2a) (from Ch. 120, par. 441a)
13 Sec. 2a. It is unlawful for any person to engage in the
14business of selling tangible personal property at retail in
15this State without a certificate of registration from the
16Department. Application for a certificate of registration
17shall be made to the Department upon forms furnished by it.
18Each such application shall be signed and verified and shall
19state: (1) the name and social security number of the
20applicant; (2) the address of his principal place of business;
21(3) the address of the principal place of business from which
22he engages in the business of selling tangible personal
23property at retail in this State and the addresses of all other
24places of business, if any (enumerating such addresses, if any,
25in a separate list attached to and made a part of the

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1application), from which he engages in the business of selling
2tangible personal property at retail in this State; (4) the
3name and address of the person or persons who will be
4responsible for filing returns and payment of taxes due under
5this Act; (5) in the case of a publicly traded corporation, the
6name and title of the Chief Financial Officer, Chief Operating
7Officer, and any other officer or employee with responsibility
8for preparing tax returns under this Act, and, in the case of
9all other corporations, the name, title, and social security
10number of each corporate officer; (6) in the case of a limited
11liability company, the name, social security number, and FEIN
12number of each manager and member; and (7) such other
13information as the Department may reasonably require. The
14application shall contain an acceptance of responsibility
15signed by the person or persons who will be responsible for
16filing returns and payment of the taxes due under this Act. If
17the applicant will sell tangible personal property at retail
18through vending machines, his application to register shall
19indicate the number of vending machines to be so operated. If
20requested by the Department at any time, that person shall
21verify the total number of vending machines he or she uses in
22his or her business of selling tangible personal property at
23retail.
24 The Department shall provide by rule for an expedited
25business registration process for remote retailers required to
26register and file under subsection (b) of Section 2 who use a

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1certified service provider to file their returns under this
2Act. Such expedited registration process shall allow the
3Department to register a taxpayer based upon the same
4registration information required by the Streamlined Sales Tax
5Governing Board for states participating in the Streamlined
6Sales Tax Project.
7 The Department may deny a certificate of registration to
8any applicant if a person who is named as the owner, a partner,
9a manager or member of a limited liability company, or a
10corporate officer of the applicant on the application for the
11certificate of registration is or has been named as the owner,
12a partner, a manager or member of a limited liability company,
13or a corporate officer on the application for the certificate
14of registration of another retailer that is in default for
15moneys due under this Act or any other tax or fee Act
16administered by the Department. For purposes of this paragraph
17only, in determining whether a person is in default for moneys
18due, the Department shall include only amounts established as a
19final liability within the 20 years prior to the date of the
20Department's notice of denial of a certificate of registration.
21 The Department may require an applicant for a certificate
22of registration hereunder to, at the time of filing such
23application, furnish a bond from a surety company authorized to
24do business in the State of Illinois, or an irrevocable bank
25letter of credit or a bond signed by 2 personal sureties who
26have filed, with the Department, sworn statements disclosing

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1net assets equal to at least 3 times the amount of the bond to
2be required of such applicant, or a bond secured by an
3assignment of a bank account or certificate of deposit, stocks
4or bonds, conditioned upon the applicant paying to the State of
5Illinois all moneys becoming due under this Act and under any
6other State tax law or municipal or county tax ordinance or
7resolution under which the certificate of registration that is
8issued to the applicant under this Act will permit the
9applicant to engage in business without registering separately
10under such other law, ordinance or resolution. In making a
11determination as to whether to require a bond or other
12security, the Department shall take into consideration whether
13the owner, any partner, any manager or member of a limited
14liability company, or a corporate officer of the applicant is
15or has been the owner, a partner, a manager or member of a
16limited liability company, or a corporate officer of another
17retailer that is in default for moneys due under this Act or
18any other tax or fee Act administered by the Department; and
19whether the owner, any partner, any manager or member of a
20limited liability company, or a corporate officer of the
21applicant is or has been the owner, a partner, a manager or
22member of a limited liability company, or a corporate officer
23of another retailer whose certificate of registration has been
24revoked within the previous 5 years under this Act or any other
25tax or fee Act administered by the Department. If a bond or
26other security is required, the Department shall fix the amount

SB0690 Enrolled- 159 -LRB101 04451 HLH 49459 b
1of the bond or other security, taking into consideration the
2amount of money expected to become due from the applicant under
3this Act and under any other State tax law or municipal or
4county tax ordinance or resolution under which the certificate
5of registration that is issued to the applicant under this Act
6will permit the applicant to engage in business without
7registering separately under such other law, ordinance, or
8resolution. The amount of security required by the Department
9shall be such as, in its opinion, will protect the State of
10Illinois against failure to pay the amount which may become due
11from the applicant under this Act and under any other State tax
12law or municipal or county tax ordinance or resolution under
13which the certificate of registration that is issued to the
14applicant under this Act will permit the applicant to engage in
15business without registering separately under such other law,
16ordinance or resolution, but the amount of the security
17required by the Department shall not exceed three times the
18amount of the applicant's average monthly tax liability, or
19$50,000.00, whichever amount is lower.
20 No certificate of registration under this Act shall be
21issued by the Department until the applicant provides the
22Department with satisfactory security, if required, as herein
23provided for.
24 Upon receipt of the application for certificate of
25registration in proper form, and upon approval by the
26Department of the security furnished by the applicant, if

SB0690 Enrolled- 160 -LRB101 04451 HLH 49459 b
1required, the Department shall issue to such applicant a
2certificate of registration which shall permit the person to
3whom it is issued to engage in the business of selling tangible
4personal property at retail in this State. The certificate of
5registration shall be conspicuously displayed at the place of
6business which the person so registered states in his
7application to be the principal place of business from which he
8engages in the business of selling tangible personal property
9at retail in this State.
10 No certificate of registration issued prior to July 1, 2017
11to a taxpayer who files returns required by this Act on a
12monthly basis or renewed prior to July 1, 2017 by a taxpayer
13who files returns required by this Act on a monthly basis shall
14be valid after the expiration of 5 years from the date of its
15issuance or last renewal. No certificate of registration issued
16on or after July 1, 2017 to a taxpayer who files returns
17required by this Act on a monthly basis or renewed on or after
18July 1, 2017 by a taxpayer who files returns required by this
19Act on a monthly basis shall be valid after the expiration of
20one year from the date of its issuance or last renewal. The
21expiration date of a sub-certificate of registration shall be
22that of the certificate of registration to which the
23sub-certificate relates. Prior to July 1, 2017, a certificate
24of registration shall automatically be renewed, subject to
25revocation as provided by this Act, for an additional 5 years
26from the date of its expiration unless otherwise notified by

SB0690 Enrolled- 161 -LRB101 04451 HLH 49459 b
1the Department as provided by this paragraph. On and after July
21, 2017, a certificate of registration shall automatically be
3renewed, subject to revocation as provided by this Act, for an
4additional one year from the date of its expiration unless
5otherwise notified by the Department as provided by this
6paragraph.
7 Where a taxpayer to whom a certificate of registration is
8issued under this Act is in default to the State of Illinois
9for delinquent returns or for moneys due under this Act or any
10other State tax law or municipal or county ordinance
11administered or enforced by the Department, the Department
12shall, not less than 60 days before the expiration date of such
13certificate of registration, give notice to the taxpayer to
14whom the certificate was issued of the account period of the
15delinquent returns, the amount of tax, penalty and interest due
16and owing from the taxpayer, and that the certificate of
17registration shall not be automatically renewed upon its
18expiration date unless the taxpayer, on or before the date of
19expiration, has filed and paid the delinquent returns or paid
20the defaulted amount in full. A taxpayer to whom such a notice
21is issued shall be deemed an applicant for renewal. The
22Department shall promulgate regulations establishing
23procedures for taxpayers who file returns on a monthly basis
24but desire and qualify to change to a quarterly or yearly
25filing basis and will no longer be subject to renewal under
26this Section, and for taxpayers who file returns on a yearly or

SB0690 Enrolled- 162 -LRB101 04451 HLH 49459 b
1quarterly basis but who desire or are required to change to a
2monthly filing basis and will be subject to renewal under this
3Section.
4 The Department may in its discretion approve renewal by an
5applicant who is in default if, at the time of application for
6renewal, the applicant files all of the delinquent returns or
7pays to the Department such percentage of the defaulted amount
8as may be determined by the Department and agrees in writing to
9waive all limitations upon the Department for collection of the
10remaining defaulted amount to the Department over a period not
11to exceed 5 years from the date of renewal of the certificate;
12however, no renewal application submitted by an applicant who
13is in default shall be approved if the immediately preceding
14renewal by the applicant was conditioned upon the installment
15payment agreement described in this Section. The payment
16agreement herein provided for shall be in addition to and not
17in lieu of the security that may be required by this Section of
18a taxpayer who is no longer considered a prior continuous
19compliance taxpayer. The execution of the payment agreement as
20provided in this Act shall not toll the accrual of interest at
21the statutory rate.
22 The Department may suspend a certificate of registration if
23the Department finds that the person to whom the certificate of
24registration has been issued knowingly sold contraband
25cigarettes.
26 A certificate of registration issued under this Act more

SB0690 Enrolled- 163 -LRB101 04451 HLH 49459 b
1than 5 years before January 1, 1990 (the effective date of
2Public Act 86-383) shall expire and be subject to the renewal
3provisions of this Section on the next anniversary of the date
4of issuance of such certificate which occurs more than 6 months
5after January 1, 1990 (the effective date of Public Act
686-383). A certificate of registration issued less than 5 years
7before January 1, 1990 (the effective date of Public Act
886-383) shall expire and be subject to the renewal provisions
9of this Section on the 5th anniversary of the issuance of the
10certificate.
11 If the person so registered states that he operates other
12places of business from which he engages in the business of
13selling tangible personal property at retail in this State, the
14Department shall furnish him with a sub-certificate of
15registration for each such place of business, and the applicant
16shall display the appropriate sub-certificate of registration
17at each such place of business. All sub-certificates of
18registration shall bear the same registration number as that
19appearing upon the certificate of registration to which such
20sub-certificates relate.
21 If the applicant will sell tangible personal property at
22retail through vending machines, the Department shall furnish
23him with a sub-certificate of registration for each such
24vending machine, and the applicant shall display the
25appropriate sub-certificate of registration on each such
26vending machine by attaching the sub-certificate of

SB0690 Enrolled- 164 -LRB101 04451 HLH 49459 b
1registration to a conspicuous part of such vending machine. If
2a person who is registered to sell tangible personal property
3at retail through vending machines adds an additional vending
4machine or additional vending machines to the number of vending
5machines he or she uses in his or her business of selling
6tangible personal property at retail, he or she shall notify
7the Department, on a form prescribed by the Department, to
8request an additional sub-certificate or additional
9sub-certificates of registration, as applicable. With each
10such request, the applicant shall report the number of
11sub-certificates of registration he or she is requesting as
12well as the total number of vending machines from which he or
13she makes retail sales.
14 Where the same person engages in 2 or more businesses of
15selling tangible personal property at retail in this State,
16which businesses are substantially different in character or
17engaged in under different trade names or engaged in under
18other substantially dissimilar circumstances (so that it is
19more practicable, from an accounting, auditing or bookkeeping
20standpoint, for such businesses to be separately registered),
21the Department may require or permit such person (subject to
22the same requirements concerning the furnishing of security as
23those that are provided for hereinbefore in this Section as to
24each application for a certificate of registration) to apply
25for and obtain a separate certificate of registration for each
26such business or for any of such businesses, under a single

SB0690 Enrolled- 165 -LRB101 04451 HLH 49459 b
1certificate of registration supplemented by related
2sub-certificates of registration.
3 Any person who is registered under the Retailers'
4Occupation Tax Act as of March 8, 1963, and who, during the
53-year period immediately prior to March 8, 1963, or during a
6continuous 3-year period part of which passed immediately
7before and the remainder of which passes immediately after
8March 8, 1963, has been so registered continuously and who is
9determined by the Department not to have been either delinquent
10or deficient in the payment of tax liability during that period
11under this Act or under any other State tax law or municipal or
12county tax ordinance or resolution under which the certificate
13of registration that is issued to the registrant under this Act
14will permit the registrant to engage in business without
15registering separately under such other law, ordinance or
16resolution, shall be considered to be a Prior Continuous
17Compliance taxpayer. Also any taxpayer who has, as verified by
18the Department, faithfully and continuously complied with the
19condition of his bond or other security under the provisions of
20this Act for a period of 3 consecutive years shall be
21considered to be a Prior Continuous Compliance taxpayer.
22 Every Prior Continuous Compliance taxpayer shall be exempt
23from all requirements under this Act concerning the furnishing
24of a bond or other security as a condition precedent to his
25being authorized to engage in the business of selling tangible
26personal property at retail in this State. This exemption shall

SB0690 Enrolled- 166 -LRB101 04451 HLH 49459 b
1continue for each such taxpayer until such time as he may be
2determined by the Department to be delinquent in the filing of
3any returns, or is determined by the Department (either through
4the Department's issuance of a final assessment which has
5become final under the Act, or by the taxpayer's filing of a
6return which admits tax that is not paid to be due) to be
7delinquent or deficient in the paying of any tax under this Act
8or under any other State tax law or municipal or county tax
9ordinance or resolution under which the certificate of
10registration that is issued to the registrant under this Act
11will permit the registrant to engage in business without
12registering separately under such other law, ordinance or
13resolution, at which time that taxpayer shall become subject to
14all the financial responsibility requirements of this Act and,
15as a condition of being allowed to continue to engage in the
16business of selling tangible personal property at retail, may
17be required to post bond or other acceptable security with the
18Department covering liability which such taxpayer may
19thereafter incur. Any taxpayer who fails to pay an admitted or
20established liability under this Act may also be required to
21post bond or other acceptable security with this Department
22guaranteeing the payment of such admitted or established
23liability.
24 No certificate of registration shall be issued to any
25person who is in default to the State of Illinois for moneys
26due under this Act or under any other State tax law or

SB0690 Enrolled- 167 -LRB101 04451 HLH 49459 b
1municipal or county tax ordinance or resolution under which the
2certificate of registration that is issued to the applicant
3under this Act will permit the applicant to engage in business
4without registering separately under such other law, ordinance
5or resolution.
6 Any person aggrieved by any decision of the Department
7under this Section may, within 20 days after notice of such
8decision, protest and request a hearing, whereupon the
9Department shall give notice to such person of the time and
10place fixed for such hearing and shall hold a hearing in
11conformity with the provisions of this Act and then issue its
12final administrative decision in the matter to such person. In
13the absence of such a protest within 20 days, the Department's
14decision shall become final without any further determination
15being made or notice given.
16 With respect to security other than bonds (upon which the
17Department may sue in the event of a forfeiture), if the
18taxpayer fails to pay, when due, any amount whose payment such
19security guarantees, the Department shall, after such
20liability is admitted by the taxpayer or established by the
21Department through the issuance of a final assessment that has
22become final under the law, convert the security which that
23taxpayer has furnished into money for the State, after first
24giving the taxpayer at least 10 days' written notice, by
25registered or certified mail, to pay the liability or forfeit
26such security to the Department. If the security consists of

SB0690 Enrolled- 168 -LRB101 04451 HLH 49459 b
1stocks or bonds or other securities which are listed on a
2public exchange, the Department shall sell such securities
3through such public exchange. If the security consists of an
4irrevocable bank letter of credit, the Department shall convert
5the security in the manner provided for in the Uniform
6Commercial Code. If the security consists of a bank certificate
7of deposit, the Department shall convert the security into
8money by demanding and collecting the amount of such bank
9certificate of deposit from the bank which issued such
10certificate. If the security consists of a type of stocks or
11other securities which are not listed on a public exchange, the
12Department shall sell such security to the highest and best
13bidder after giving at least 10 days' notice of the date, time
14and place of the intended sale by publication in the "State
15Official Newspaper". If the Department realizes more than the
16amount of such liability from the security, plus the expenses
17incurred by the Department in converting the security into
18money, the Department shall pay such excess to the taxpayer who
19furnished such security, and the balance shall be paid into the
20State Treasury.
21 The Department shall discharge any surety and shall release
22and return any security deposited, assigned, pledged or
23otherwise provided to it by a taxpayer under this Section
24within 30 days after:
25 (1) such taxpayer becomes a Prior Continuous
26 Compliance taxpayer; or

SB0690 Enrolled- 169 -LRB101 04451 HLH 49459 b
1 (2) such taxpayer has ceased to collect receipts on
2 which he is required to remit tax to the Department, has
3 filed a final tax return, and has paid to the Department an
4 amount sufficient to discharge his remaining tax
5 liability, as determined by the Department, under this Act
6 and under every other State tax law or municipal or county
7 tax ordinance or resolution under which the certificate of
8 registration issued under this Act permits the registrant
9 to engage in business without registering separately under
10 such other law, ordinance or resolution. The Department
11 shall make a final determination of the taxpayer's
12 outstanding tax liability as expeditiously as possible
13 after his final tax return has been filed; if the
14 Department cannot make such final determination within 45
15 days after receiving the final tax return, within such
16 period it shall so notify the taxpayer, stating its reasons
17 therefor.
18(Source: P.A. 100-302, eff. 8-24-17; 100-303, eff. 8-24-17;
19100-863, eff. 8-14-18.)
20 Section 15-50. The Cigarette Tax Act is amended by changing
21Section 2 as follows:
22 (35 ILCS 130/2) (from Ch. 120, par. 453.2)
23 Sec. 2. Tax imposed; rate; collection, payment, and
24distribution; discount.

SB0690 Enrolled- 170 -LRB101 04451 HLH 49459 b
1 (a) Beginning on July 1, 2019, in place of the aggregate
2tax rate of 99 mills previously imposed by this Act, a tax is
3imposed upon any person engaged in business as a retailer of
4cigarettes at the rate of 149 mills per cigarette sold or
5otherwise disposed of in the course of such business in this
6State. A tax is imposed upon any person engaged in business as
7a retailer of cigarettes in this State at the rate of 5 1/2
8mills per cigarette sold, or otherwise disposed of in the
9course of such business in this State. In addition to any other
10tax imposed by this Act, a tax is imposed upon any person
11engaged in business as a retailer of cigarettes in this State
12at a rate of 1/2 mill per cigarette sold or otherwise disposed
13of in the course of such business in this State on and after
14January 1, 1947, and shall be paid into the Metropolitan Fair
15and Exposition Authority Reconstruction Fund or as otherwise
16provided in Section 29. On and after December 1, 1985, in
17addition to any other tax imposed by this Act, a tax is imposed
18upon any person engaged in business as a retailer of cigarettes
19in this State at a rate of 4 mills per cigarette sold or
20otherwise disposed of in the course of such business in this
21State. Of the additional tax imposed by this amendatory Act of
221985, $9,000,000 of the moneys received by the Department of
23Revenue pursuant to this Act shall be paid each month into the
24Common School Fund. On and after the effective date of this
25amendatory Act of 1989, in addition to any other tax imposed by
26this Act, a tax is imposed upon any person engaged in business

SB0690 Enrolled- 171 -LRB101 04451 HLH 49459 b
1as a retailer of cigarettes at the rate of 5 mills per
2cigarette sold or otherwise disposed of in the course of such
3business in this State. On and after the effective date of this
4amendatory Act of 1993, in addition to any other tax imposed by
5this Act, a tax is imposed upon any person engaged in business
6as a retailer of cigarettes at the rate of 7 mills per
7cigarette sold or otherwise disposed of in the course of such
8business in this State. On and after December 15, 1997, in
9addition to any other tax imposed by this Act, a tax is imposed
10upon any person engaged in business as a retailer of cigarettes
11at the rate of 7 mills per cigarette sold or otherwise disposed
12of in the course of such business of this State. All of the
13moneys received by the Department of Revenue pursuant to this
14Act and the Cigarette Use Tax Act from the additional taxes
15imposed by this amendatory Act of 1997, shall be paid each
16month into the Common School Fund. On and after July 1, 2002,
17in addition to any other tax imposed by this Act, a tax is
18imposed upon any person engaged in business as a retailer of
19cigarettes at the rate of 20.0 mills per cigarette sold or
20otherwise disposed of in the course of such business in this
21State. Beginning on June 24, 2012, in addition to any other tax
22imposed by this Act, a tax is imposed upon any person engaged
23in business as a retailer of cigarettes at the rate of 50 mills
24per cigarette sold or otherwise disposed of in the course of
25such business in this State. All moneys received by the
26Department of Revenue under this Act and the Cigarette Use Tax

SB0690 Enrolled- 172 -LRB101 04451 HLH 49459 b
1Act from the additional taxes imposed by this amendatory Act of
2the 97th General Assembly shall be paid each month into the
3Healthcare Provider Relief Fund.
4 (b) The payment of such taxes shall be evidenced by a stamp
5affixed to each original package of cigarettes, or an
6authorized substitute for such stamp imprinted on each original
7package of such cigarettes underneath the sealed transparent
8outside wrapper of such original package, as hereinafter
9provided. However, such taxes are not imposed upon any activity
10in such business in interstate commerce or otherwise, which
11activity may not under the Constitution and statutes of the
12United States be made the subject of taxation by this State.
13 Beginning on the effective date of this amendatory Act of
14the 92nd General Assembly and through June 30, 2006, all of the
15moneys received by the Department of Revenue pursuant to this
16Act and the Cigarette Use Tax Act, other than the moneys that
17are dedicated to the Common School Fund, shall be distributed
18each month as follows: first, there shall be paid into the
19General Revenue Fund an amount which, when added to the amount
20paid into the Common School Fund for that month, equals
21$33,300,000, except that in the month of August of 2004, this
22amount shall equal $83,300,000; then, from the moneys
23remaining, if any amounts required to be paid into the General
24Revenue Fund in previous months remain unpaid, those amounts
25shall be paid into the General Revenue Fund; then, beginning on
26April 1, 2003, from the moneys remaining, $5,000,000 per month

SB0690 Enrolled- 173 -LRB101 04451 HLH 49459 b
1shall be paid into the School Infrastructure Fund; then, if any
2amounts required to be paid into the School Infrastructure Fund
3in previous months remain unpaid, those amounts shall be paid
4into the School Infrastructure Fund; then the moneys remaining,
5if any, shall be paid into the Long-Term Care Provider Fund. To
6the extent that more than $25,000,000 has been paid into the
7General Revenue Fund and Common School Fund per month for the
8period of July 1, 1993 through the effective date of this
9amendatory Act of 1994 from combined receipts of the Cigarette
10Tax Act and the Cigarette Use Tax Act, notwithstanding the
11distribution provided in this Section, the Department of
12Revenue is hereby directed to adjust the distribution provided
13in this Section to increase the next monthly payments to the
14Long Term Care Provider Fund by the amount paid to the General
15Revenue Fund and Common School Fund in excess of $25,000,000
16per month and to decrease the next monthly payments to the
17General Revenue Fund and Common School Fund by that same excess
18amount.
19 Beginning on July 1, 2006, all of the moneys received by
20the Department of Revenue pursuant to this Act and the
21Cigarette Use Tax Act, other than the moneys that are dedicated
22to the Common School Fund and, beginning on the effective date
23of this amendatory Act of the 97th General Assembly, other than
24the moneys from the additional taxes imposed by this amendatory
25Act of the 97th General Assembly that must be paid each month
26into the Healthcare Provider Relief Fund, and other than the

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1moneys from the additional taxes imposed by this amendatory Act
2of the 101st General Assembly that must be paid each month
3under subsection (c), shall be distributed each month as
4follows: first, there shall be paid into the General Revenue
5Fund an amount that, when added to the amount paid into the
6Common School Fund for that month, equals $29,200,000; then,
7from the moneys remaining, if any amounts required to be paid
8into the General Revenue Fund in previous months remain unpaid,
9those amounts shall be paid into the General Revenue Fund; then
10from the moneys remaining, $5,000,000 per month shall be paid
11into the School Infrastructure Fund; then, if any amounts
12required to be paid into the School Infrastructure Fund in
13previous months remain unpaid, those amounts shall be paid into
14the School Infrastructure Fund; then the moneys remaining, if
15any, shall be paid into the Long-Term Care Provider Fund.
16 (c) Beginning on July 1, 2019, all of the moneys from the
17additional taxes imposed by this amendatory Act of the 101st
18General Assembly received by the Department of Revenue pursuant
19to this Act and the Cigarette Use Tax Act shall be distributed
20each month into the Capital Projects Fund.
21 (d) Moneys collected from the tax imposed on little cigars
22under Section 10-10 of the Tobacco Products Tax Act of 1995
23shall be included with the moneys collected under the Cigarette
24Tax Act and the Cigarette Use Tax Act when making distributions
25to the Common School Fund, the Healthcare Provider Relief Fund,
26the General Revenue Fund, the School Infrastructure Fund, and

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1the Long-Term Care Provider Fund under this Section.
2 (e) If the When any tax imposed herein terminates or has
3terminated, distributors who have bought stamps while such tax
4was in effect and who therefore paid such tax, but who can
5show, to the Department's satisfaction, that they sold the
6cigarettes to which they affixed such stamps after such tax had
7terminated and did not recover the tax or its equivalent from
8purchasers, shall be allowed by the Department to take credit
9for such absorbed tax against subsequent tax stamp purchases
10from the Department by such distributor.
11 (f) The impact of the tax levied by this Act is imposed
12upon the retailer and shall be prepaid or pre-collected by the
13distributor for the purpose of convenience and facility only,
14and the amount of the tax shall be added to the price of the
15cigarettes sold by such distributor. Collection of the tax
16shall be evidenced by a stamp or stamps affixed to each
17original package of cigarettes, as hereinafter provided. Any
18distributor who purchases stamps may credit any excess payments
19verified by the Department against amounts subsequently due for
20the purchase of additional stamps, until such time as no excess
21payment remains.
22 (g) Each distributor shall collect the tax from the
23retailer at or before the time of the sale, shall affix the
24stamps as hereinafter required, and shall remit the tax
25collected from retailers to the Department, as hereinafter
26provided. Any distributor who fails to properly collect and pay

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1the tax imposed by this Act shall be liable for the tax. Any
2distributor having cigarettes to which stamps have been affixed
3in his possession for sale on the effective date of this
4amendatory Act of 1989 shall not be required to pay the
5additional tax imposed by this amendatory Act of 1989 on such
6stamped cigarettes. Any distributor having cigarettes to which
7stamps have been affixed in his or her possession for sale at
812:01 a.m. on the effective date of this amendatory Act of
91993, is required to pay the additional tax imposed by this
10amendatory Act of 1993 on such stamped cigarettes. This
11payment, less the discount provided in subsection (b), shall be
12due when the distributor first makes a purchase of cigarette
13tax stamps after the effective date of this amendatory Act of
141993, or on the first due date of a return under this Act after
15the effective date of this amendatory Act of 1993, whichever
16occurs first. Any distributor having cigarettes to which stamps
17have been affixed in his possession for sale on December 15,
181997 shall not be required to pay the additional tax imposed by
19this amendatory Act of 1997 on such stamped cigarettes.
20 Any distributor having cigarettes to which stamps have been
21affixed in his or her possession for sale on July 1, 2002 shall
22not be required to pay the additional tax imposed by this
23amendatory Act of the 92nd General Assembly on those stamped
24cigarettes.
25 (h) Any distributor having cigarettes in his or her
26possession on July 1, 2019 to which tax stamps have been

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1affixed, and any distributor having stamps in his or her
2possession on July 1, 2019 that have not been affixed to
3packages of cigarettes before July 1, 2019, is required to pay
4the additional tax that begins on July 1, 2019 imposed by this
5amendatory Act of the 101st General Assembly to the extent that
6the volume of affixed and unaffixed stamps in the distributor's
7possession on July 1, 2019 exceeds the average monthly volume
8of cigarette stamps purchased by the distributor in calendar
9year 2018. This payment, less the discount provided in
10subsection (l), is due when the distributor first makes a
11purchase of cigarette stamps on or after July 1, 2019 or on the
12first due date of a return under this Act occurring on or after
13July 1, 2019, whichever occurs first. Those distributors may
14elect to pay the additional tax on packages of cigarettes to
15which stamps have been affixed and on any stamps in the
16distributor's possession that have not been affixed to packages
17of cigarettes in their possession on July 1, 2019 over a period
18not to exceed 12 months from the due date of the additional tax
19by notifying the Department in writing. The first payment for
20distributors making such election is due when the distributor
21first makes a purchase of cigarette tax stamps on or after July
221, 2019 or on the first due date of a return under this Act
23occurring on or after July 1, 2019, whichever occurs first.
24Distributors making such an election are not entitled to take
25the discount provided in subsection (l) on such payments.
26 (i) Any retailer having cigarettes in its his or her

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1possession on July 1, 2019 June 24, 2012 to which tax stamps
2have been affixed is not required to pay the additional tax
3that begins on July 1, 2019 June 24, 2012 imposed by this
4amendatory Act of the 101st General Assembly this amendatory
5Act of the 97th General Assembly on those stamped cigarettes.
6Any distributor having cigarettes in his or her possession on
7June 24, 2012 to which tax stamps have been affixed, and any
8distributor having stamps in his or her possession on June 24,
92012 that have not been affixed to packages of cigarettes
10before June 24, 2012, is required to pay the additional tax
11that begins on June 24, 2012 imposed by this amendatory Act of
12the 97th General Assembly to the extent the calendar year 2012
13average monthly volume of cigarette stamps in the distributor's
14possession exceeds the average monthly volume of cigarette
15stamps purchased by the distributor in calendar year 2011. This
16payment, less the discount provided in subsection (b), is due
17when the distributor first makes a purchase of cigarette stamps
18on or after June 24, 2012 or on the first due date of a return
19under this Act occurring on or after June 24, 2012, whichever
20occurs first. Those distributors may elect to pay the
21additional tax on packages of cigarettes to which stamps have
22been affixed and on any stamps in the distributor's possession
23that have not been affixed to packages of cigarettes over a
24period not to exceed 12 months from the due date of the
25additional tax by notifying the Department in writing. The
26first payment for distributors making such election is due when

SB0690 Enrolled- 179 -LRB101 04451 HLH 49459 b
1the distributor first makes a purchase of cigarette tax stamps
2on or after June 24, 2012 or on the first due date of a return
3under this Act occurring on or after June 24, 2012, whichever
4occurs first. Distributors making such an election are not
5entitled to take the discount provided in subsection (b) on
6such payments.
7 (j) Distributors making sales of cigarettes to secondary
8distributors shall add the amount of the tax to the price of
9the cigarettes sold by the distributors. Secondary
10distributors making sales of cigarettes to retailers shall
11include the amount of the tax in the price of the cigarettes
12sold to retailers. The amount of tax shall not be less than the
13amount of taxes imposed by the State and all local
14jurisdictions. The amount of local taxes shall be calculated
15based on the location of the retailer's place of business shown
16on the retailer's certificate of registration or
17sub-registration issued to the retailer pursuant to Section 2a
18of the Retailers' Occupation Tax Act. The original packages of
19cigarettes sold to the retailer shall bear all the required
20stamps, or other indicia, for the taxes included in the price
21of cigarettes.
22 (k) The amount of the Cigarette Tax imposed by this Act
23shall be separately stated, apart from the price of the goods,
24by distributors, manufacturer representatives, secondary
25distributors, and retailers, in all bills and sales invoices.
26 (l) (b) The distributor shall be required to collect the

SB0690 Enrolled- 180 -LRB101 04451 HLH 49459 b
1tax taxes provided under paragraph (a) hereof, and, to cover
2the costs of such collection, shall be allowed a discount
3during any year commencing July 1st and ending the following
4June 30th in accordance with the schedule set out hereinbelow,
5which discount shall be allowed at the time of purchase of the
6stamps when purchase is required by this Act, or at the time
7when the tax is remitted to the Department without the purchase
8of stamps from the Department when that method of paying the
9tax is required or authorized by this Act. Prior to December 1,
101985, a discount equal to 1 2/3% of the amount of the tax up to
11and including the first $700,000 paid hereunder by such
12distributor to the Department during any such year; 1 1/3% of
13the next $700,000 of tax or any part thereof, paid hereunder by
14such distributor to the Department during any such year; 1% of
15the next $700,000 of tax, or any part thereof, paid hereunder
16by such distributor to the Department during any such year, and
172/3 of 1% of the amount of any additional tax paid hereunder by
18such distributor to the Department during any such year shall
19apply.
20 On and after December 1, 1985, a discount equal to 1.75% of
21the amount of the tax payable under this Act up to and
22including the first $3,000,000 paid hereunder by such
23distributor to the Department during any such year and 1.5% of
24the amount of any additional tax paid hereunder by such
25distributor to the Department during any such year shall apply.
26 Two or more distributors that use a common means of

SB0690 Enrolled- 181 -LRB101 04451 HLH 49459 b
1affixing revenue tax stamps or that are owned or controlled by
2the same interests shall be treated as a single distributor for
3the purpose of computing the discount.
4 (m) (c) The taxes herein imposed are in addition to all
5other occupation or privilege taxes imposed by the State of
6Illinois, or by any political subdivision thereof, or by any
7municipal corporation.
8(Source: P.A. 100-1171, eff. 1-4-19.)
9 (35 ILCS 130/29 rep.)
10 Section 15-55. The Cigarette Tax Act is amended by
11repealing Section 29.
12 Section 15-60. The Cigarette Use Tax Act is amended by
13changing Sections 2 and 35 as follows:
14 (35 ILCS 135/2) (from Ch. 120, par. 453.32)
15 Sec. 2. Beginning on July 1, 2019, in place of the
16aggregate tax rate of 99 mills previously imposed by this Act,
17a tax is imposed upon the privilege of using cigarettes in this
18State at the rate of 149 mills per cigarette so used. A tax is
19imposed upon the privilege of using cigarettes in this State,
20at the rate of 6 mills per cigarette so used. On and after
21December 1, 1985, in addition to any other tax imposed by this
22Act, a tax is imposed upon the privilege of using cigarettes in
23this State at a rate of 4 mills per cigarette so used. On and

SB0690 Enrolled- 182 -LRB101 04451 HLH 49459 b
1after the effective date of this amendatory Act of 1989, in
2addition to any other tax imposed by this Act, a tax is imposed
3upon the privilege of using cigarettes in this State at the
4rate of 5 mills per cigarette so used. On and after the
5effective date of this amendatory Act of 1993, in addition to
6any other tax imposed by this Act, a tax is imposed upon the
7privilege of using cigarettes in this State at a rate of 7
8mills per cigarette so used. On and after December 15, 1997, in
9addition to any other tax imposed by this Act, a tax is imposed
10upon the privilege of using cigarettes in this State at a rate
11of 7 mills per cigarette so used. On and after July 1, 2002, in
12addition to any other tax imposed by this Act, a tax is imposed
13upon the privilege of using cigarettes in this State at a rate
14of 20.0 mills per cigarette so used. Beginning on June 24,
152012, in addition to any other tax imposed by this Act, a tax
16is imposed upon the privilege of using cigarettes in this State
17at a rate of 50 mills per cigarette so used. The tax taxes
18herein imposed shall be in addition to all other occupation or
19privilege taxes imposed by the State of Illinois or by any
20political subdivision thereof or by any municipal corporation.
21 If the When any tax imposed herein terminates or has
22terminated, distributors who have bought stamps while such tax
23was in effect and who therefore paid such tax, but who can
24show, to the Department's satisfaction, that they sold the
25cigarettes to which they affixed such stamps after such tax had
26terminated and did not recover the tax or its equivalent from

SB0690 Enrolled- 183 -LRB101 04451 HLH 49459 b
1purchasers, shall be allowed by the Department to take credit
2for such absorbed tax against subsequent tax stamp purchases
3from the Department by such distributors.
4 When the word "tax" is used in this Act, it shall include
5any tax or tax rate imposed by this Act and shall mean the
6singular of "tax" or the plural "taxes" as the context may
7require.
8 Any retailer having cigarettes in its possession on July 1,
92019 to which tax stamps have been affixed is not required to
10pay the additional tax that begins on July 1, 2019 imposed by
11this amendatory Act of the 101st General Assembly on those
12stamped cigarettes. Any distributor having cigarettes in his or
13her possession on July 1, 2019 to which tax stamps have been
14affixed, and any distributor having stamps in his or her
15possession on July 1, 2019 that have not been affixed to
16packages of cigarettes before July 1, 2019, is required to pay
17the additional tax that begins on July 1, 2019 imposed by this
18amendatory Act of the 101st General Assembly to the extent that
19the volume of affixed and unaffixed stamps in the distributor's
20possession on July 1, 2019 exceeds the average monthly volume
21of cigarette stamps purchased by the distributor in calendar
22year 2018. This payment, less the discount provided in Section
233, is due when the distributor first makes a purchase of
24cigarette stamps on or after July 1, 2019 or on the first due
25date of a return under this Act occurring on or after July 1,
262019, whichever occurs first. Those distributors may elect to

SB0690 Enrolled- 184 -LRB101 04451 HLH 49459 b
1pay the additional tax on packages of cigarettes to which
2stamps have been affixed and on any stamps in the distributor's
3possession that have not been affixed to packages of cigarettes
4in their possession on July 1, 2019 over a period not to exceed
512 months from the due date of the additional tax by notifying
6the Department in writing. The first payment for distributors
7making such election is due when the distributor first makes a
8purchase of cigarette tax stamps on or after July 1, 2019 or on
9the first due date of a return under this Act occurring on or
10after July 1, 2019, whichever occurs first. Distributors making
11such an election are not entitled to take the discount provided
12in Section 3 on such payments.
13 Any distributor having cigarettes to which stamps have been
14affixed in his possession for sale on the effective date of
15this amendatory Act of 1989 shall not be required to pay the
16additional tax imposed by this amendatory Act of 1989 on such
17stamped cigarettes. Any distributor having cigarettes to which
18stamps have been affixed in his or her possession for sale at
1912:01 a.m. on the effective date of this amendatory Act of
201993, is required to pay the additional tax imposed by this
21amendatory Act of 1993 on such stamped cigarettes. This payment
22shall be due when the distributor first makes a purchase of
23cigarette tax stamps after the effective date of this
24amendatory Act of 1993, or on the first due date of a return
25under this Act after the effective date of this amendatory Act
26of 1993, whichever occurs first. Once a distributor tenders

SB0690 Enrolled- 185 -LRB101 04451 HLH 49459 b
1payment of the additional tax to the Department, the
2distributor may purchase stamps from the Department. Any
3distributor having cigarettes to which stamps have been affixed
4in his possession for sale on December 15, 1997 shall not be
5required to pay the additional tax imposed by this amendatory
6Act of 1997 on such stamped cigarettes.
7 Any distributor having cigarettes to which stamps have been
8affixed in his or her possession for sale on July 1, 2002 shall
9not be required to pay the additional tax imposed by this
10amendatory Act of the 92nd General Assembly on those stamped
11cigarettes.
12 Any retailer having cigarettes in his or her possession on
13June 24, 2012 to which tax stamps have been affixed is not
14required to pay the additional tax that begins on June 24, 2012
15imposed by this amendatory Act of the 97th General Assembly on
16those stamped cigarettes. Any distributor having cigarettes in
17his or her possession on June 24, 2012 to which tax stamps have
18been affixed, and any distributor having stamps in his or her
19possession on June 24, 2012 that have not been affixed to
20packages of cigarettes before June 24, 2012, is required to pay
21the additional tax that begins on June 24, 2012 imposed by this
22amendatory Act of the 97th General Assembly to the extent the
23calendar year 2012 average monthly volume of cigarette stamps
24in the distributor's possession exceeds the average monthly
25volume of cigarette stamps purchased by the distributor in
26calendar year 2011. This payment, less the discount provided in

SB0690 Enrolled- 186 -LRB101 04451 HLH 49459 b
1Section 3, is due when the distributor first makes a purchase
2of cigarette stamps on or after June 24, 2012 or on the first
3due date of a return under this Act occurring on or after June
424, 2012, whichever occurs first. Those distributors may elect
5to pay the additional tax on packages of cigarettes to which
6stamps have been affixed and on any stamps in the distributor's
7possession that have not been affixed to packages of cigarettes
8over a period not to exceed 12 months from the due date of the
9additional tax by notifying the Department in writing. The
10first payment for distributors making such election is due when
11the distributor first makes a purchase of cigarette tax stamps
12on or after June 24, 2012 or on the first due date of a return
13under this Act occurring on or after June 24, 2012, whichever
14occurs first. Distributors making such an election are not
15entitled to take the discount provided in Section 3 on such
16payments.
17(Source: P.A. 97-688, eff. 6-14-12.)
18 (35 ILCS 135/35) (from Ch. 120, par. 453.65)
19 Sec. 35. Distribution of receipts. All moneys received by
20the Department under this Act shall be distributed as provided
21in subsection (a) of Section 2 of the Cigarette Tax Act.
22(Source: P.A. 88-535.)
23 Section 15-65. The Tobacco Products Tax Act of 1995 is
24amended by changing Sections 10-5 and 10-10 as follows:

SB0690 Enrolled- 187 -LRB101 04451 HLH 49459 b
1 (35 ILCS 143/10-5)
2 Sec. 10-5. Definitions. For purposes of this Act:
3 "Business" means any trade, occupation, activity, or
4enterprise engaged in, at any location whatsoever, for the
5purpose of selling tobacco products.
6 "Cigarette" has the meaning ascribed to the term in Section
71 of the Cigarette Tax Act.
8 "Contraband little cigar" means:
9 (1) packages of little cigars containing 20 or 25
10 little cigars that do not bear a required tax stamp under
11 this Act;
12 (2) packages of little cigars containing 20 or 25
13 little cigars that bear a fraudulent, imitation, or
14 counterfeit tax stamp;
15 (3) packages of little cigars containing 20 or 25
16 little cigars that are improperly tax stamped, including
17 packages of little cigars that bear only a tax stamp of
18 another state or taxing jurisdiction; or
19 (4) packages of little cigars containing other than 20
20 or 25 little cigars in the possession of a distributor,
21 retailer or wholesaler, unless the distributor, retailer,
22 or wholesaler possesses, or produces within the time frame
23 provided in Section 10-27 or 10-28 of this Act, an invoice
24 from a stamping distributor, distributor, or wholesaler
25 showing that the tax on the packages has been or will be

SB0690 Enrolled- 188 -LRB101 04451 HLH 49459 b
1 paid.
2 "Correctional Industries program" means a program run by a
3State penal institution in which residents of the penal
4institution produce tobacco products for sale to persons
5incarcerated in penal institutions or resident patients of a
6State operated mental health facility.
7 "Department" means the Illinois Department of Revenue.
8 "Distributor" means any of the following:
9 (1) Any manufacturer or wholesaler in this State
10 engaged in the business of selling tobacco products who
11 sells, exchanges, or distributes tobacco products to
12 retailers or consumers in this State.
13 (2) Any manufacturer or wholesaler engaged in the
14 business of selling tobacco products from without this
15 State who sells, exchanges, distributes, ships, or
16 transports tobacco products to retailers or consumers
17 located in this State, so long as that manufacturer or
18 wholesaler has or maintains within this State, directly or
19 by subsidiary, an office, sales house, or other place of
20 business, or any agent or other representative operating
21 within this State under the authority of the person or
22 subsidiary, irrespective of whether the place of business
23 or agent or other representative is located here
24 permanently or temporarily.
25 (3) Any retailer who receives tobacco products on which
26 the tax has not been or will not be paid by another

SB0690 Enrolled- 189 -LRB101 04451 HLH 49459 b
1 distributor.
2 "Distributor" does not include any person, wherever
3resident or located, who makes, manufactures, or fabricates
4tobacco products as part of a Correctional Industries program
5for sale to residents incarcerated in penal institutions or
6resident patients of a State operated mental health facility.
7 "Electronic cigarette" means:
8 (1) any device that employs a battery or other
9 mechanism to heat a solution or substance to produce a
10 vapor or aerosol intended for inhalation;
11 (2) any cartridge or container of a solution or
12 substance intended to be used with or in the device or to
13 refill the device; or
14 (3) any solution or substance, whether or not it
15 contains nicotine, intended for use in the device.
16 "Electronic cigarette" includes, but is not limited to, any
17electronic nicotine delivery system, electronic cigar,
18electronic cigarillo, electronic pipe, electronic hookah, vape
19pen, or similar product or device, and any component or part
20that can be used to build the product or device. "Electronic
21cigarette" does not include: cigarettes, as defined in Section
221 of the Cigarette Tax Act; any product approved by the United
23States Food and Drug Administration for sale as a tobacco
24cessation product, a tobacco dependence product, or for other
25medical purposes that is marketed and sold solely for that
26approved purpose; any asthma inhaler prescribed by a physician

SB0690 Enrolled- 190 -LRB101 04451 HLH 49459 b
1for that condition that is marketed and sold solely for that
2approved purpose; or any therapeutic product approved for use
3under the Compassionate Use of Medical Cannabis Pilot Program
4Act.
5 "Little cigar" means and includes any roll, made wholly or
6in part of tobacco, where such roll has an integrated cellulose
7acetate filter and weighs less than 4 pounds per thousand and
8the wrapper or cover of which is made in whole or in part of
9tobacco.
10 "Manufacturer" means any person, wherever resident or
11located, who manufactures and sells tobacco products, except a
12person who makes, manufactures, or fabricates tobacco products
13as a part of a Correctional Industries program for sale to
14persons incarcerated in penal institutions or resident
15patients of a State operated mental health facility.
16 Beginning on January 1, 2013, "moist snuff" means any
17finely cut, ground, or powdered tobacco that is not intended to
18be smoked, but shall not include any finely cut, ground, or
19powdered tobacco that is intended to be placed in the nasal
20cavity.
21 "Person" means any natural individual, firm, partnership,
22association, joint stock company, joint venture, limited
23liability company, or public or private corporation, however
24formed, or a receiver, executor, administrator, trustee,
25conservator, or other representative appointed by order of any
26court.

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1 "Place of business" means and includes any place where
2tobacco products are sold or where tobacco products are
3manufactured, stored, or kept for the purpose of sale or
4consumption, including any vessel, vehicle, airplane, train,
5or vending machine.
6 "Retailer" means any person in this State engaged in the
7business of selling tobacco products to consumers in this
8State, regardless of quantity or number of sales.
9 "Sale" means any transfer, exchange, or barter in any
10manner or by any means whatsoever for a consideration and
11includes all sales made by persons.
12 "Stamp" or "stamps" mean the indicia required to be affixed
13on a package of little cigars that evidence payment of the tax
14on packages of little cigars containing 20 or 25 little cigars
15under Section 10-10 of this Act. These stamps shall be the same
16stamps used for cigarettes under the Cigarette Tax Act.
17 "Stamping distributor" means a distributor licensed under
18this Act and also licensed as a distributor under the Cigarette
19Tax Act or Cigarette Use Tax Act.
20 "Tobacco products" means any cigars, including little
21cigars; cheroots; stogies; periques; granulated, plug cut,
22crimp cut, ready rubbed, and other smoking tobacco; snuff
23(including moist snuff) or snuff flour; cavendish; plug and
24twist tobacco; fine-cut and other chewing tobaccos; shorts;
25refuse scraps, clippings, cuttings, and sweeping of tobacco;
26and other kinds and forms of tobacco, prepared in such manner

SB0690 Enrolled- 192 -LRB101 04451 HLH 49459 b
1as to be suitable for chewing or smoking in a pipe or
2otherwise, or both for chewing and smoking; but does not
3include cigarettes as defined in Section 1 of the Cigarette Tax
4Act or tobacco purchased for the manufacture of cigarettes by
5cigarette distributors and manufacturers defined in the
6Cigarette Tax Act and persons who make, manufacture, or
7fabricate cigarettes as a part of a Correctional Industries
8program for sale to residents incarcerated in penal
9institutions or resident patients of a State operated mental
10health facility.
11 Beginning on July 1, 2019, "tobacco products" also includes
12electronic cigarettes.
13 "Wholesale price" means the established list price for
14which a manufacturer sells tobacco products to a distributor,
15before the allowance of any discount, trade allowance, rebate,
16or other reduction. In the absence of such an established list
17price, the manufacturer's invoice price at which the
18manufacturer sells the tobacco product to unaffiliated
19distributors, before any discounts, trade allowances, rebates,
20or other reductions, shall be presumed to be the wholesale
21price.
22 "Wholesaler" means any person, wherever resident or
23located, engaged in the business of selling tobacco products to
24others for the purpose of resale. "Wholesaler", when used in
25this Act, does not include a person licensed as a distributor
26under Section 10-20 of this Act unless expressly stated in this

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1Act.
2(Source: P.A. 97-688, eff. 6-14-12; 98-273, eff. 8-9-13;
398-1055, eff. 1-1-16.)
4 (35 ILCS 143/10-10)
5 Sec. 10-10. Tax imposed.
6 (a) Except as otherwise provided in this Section with
7respect to little cigars, on the first day of the third month
8after the month in which this Act becomes law, a tax is imposed
9on any person engaged in business as a distributor of tobacco
10products, as defined in Section 10-5, at the rate of (i) 18% of
11the wholesale price of tobacco products sold or otherwise
12disposed of to retailers or consumers located in this State
13prior to July 1, 2012 and (ii) 36% of the wholesale price of
14tobacco products sold or otherwise disposed of to retailers or
15consumers located in this State beginning on July 1, 2012;
16except that, beginning on January 1, 2013, the tax on moist
17snuff shall be imposed at a rate of $0.30 per ounce, and a
18proportionate tax at the like rate on all fractional parts of
19an ounce, sold or otherwise disposed of to retailers or
20consumers located in this State; and except that, beginning
21July 1, 2019, the tax on electronic cigarettes shall be imposed
22at the rate of 15% of the wholesale price of electronic
23cigarettes sold or otherwise disposed of to retailers or
24consumers located in this State. The tax is in addition to all
25other occupation or privilege taxes imposed by the State of

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1Illinois, by any political subdivision thereof, or by any
2municipal corporation. However, the tax is not imposed upon any
3activity in that business in interstate commerce or otherwise,
4to the extent to which that activity may not, under the
5Constitution and Statutes of the United States, be made the
6subject of taxation by this State, and except that, beginning
7July 1, 2013, the tax on little cigars shall be imposed at the
8same rate, and the proceeds shall be distributed in the same
9manner, as the tax imposed on cigarettes under the Cigarette
10Tax Act. The tax is also not imposed on sales made to the
11United States or any entity thereof.
12 (b) Notwithstanding subsection (a) of this Section,
13stamping distributors of packages of little cigars containing
1420 or 25 little cigars sold or otherwise disposed of in this
15State shall remit the tax by purchasing tax stamps from the
16Department and affixing them to packages of little cigars in
17the same manner as stamps are purchased and affixed to
18cigarettes under the Cigarette Tax Act, unless the stamping
19distributor sells or otherwise disposes of those packages of
20little cigars to another stamping distributor. Only persons
21meeting the definition of "stamping distributor" contained in
22Section 10-5 of this Act may affix stamps to packages of little
23cigars containing 20 or 25 little cigars. Stamping distributors
24may not sell or dispose of little cigars at retail to consumers
25or users at locations where stamping distributors affix stamps
26to packages of little cigars containing 20 or 25 little cigars.

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1 (c) The impact of the tax levied by this Act is imposed
2upon distributors engaged in the business of selling tobacco
3products to retailers or consumers in this State. Whenever a
4stamping distributor brings or causes to be brought into this
5State from without this State, or purchases from without or
6within this State, any packages of little cigars containing 20
7or 25 little cigars upon which there are no tax stamps affixed
8as required by this Act, for purposes of resale or disposal in
9this State to a person not a stamping distributor, then such
10stamping distributor shall pay the tax to the Department and
11add the amount of the tax to the price of such packages sold by
12such stamping distributor. Payment of the tax shall be
13evidenced by a stamp or stamps affixed to each package of
14little cigars containing 20 or 25 little cigars.
15 Stamping distributors paying the tax to the Department on
16packages of little cigars containing 20 or 25 little cigars
17sold to other distributors, wholesalers or retailers shall add
18the amount of the tax to the price of the packages of little
19cigars containing 20 or 25 little cigars sold by such stamping
20distributors.
21 (d) Beginning on January 1, 2013, the tax rate imposed per
22ounce of moist snuff may not exceed 15% of the tax imposed upon
23a package of 20 cigarettes pursuant to the Cigarette Tax Act.
24 (e) All moneys received by the Department under this Act
25from sales occurring prior to July 1, 2012 shall be paid into
26the Long-Term Care Provider Fund of the State Treasury. Of the

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1moneys received by the Department from sales occurring on or
2after July 1, 2012, except for moneys received from the tax
3imposed on the sale of little cigars, 50% shall be paid into
4the Long-Term Care Provider Fund and 50% shall be paid into the
5Healthcare Provider Relief Fund. Beginning July 1, 2013, all
6moneys received by the Department under this Act from the tax
7imposed on little cigars shall be distributed as provided in
8subsection (a) of Section 2 of the Cigarette Tax Act.
9(Source: P.A. 97-688, eff. 6-14-12; 98-273, eff. 8-9-13.)
10 Section 15-75. The Motor Vehicle Retail Installment Sales
11Act is amended by changing Section 11.1 as follows:
12 (815 ILCS 375/11.1) (from Ch. 121 1/2, par. 571.1)
13 Sec. 11.1.
14 (a) A seller in a retail installment contract may add a
15"documentary fee" for processing documents and performing
16services related to closing of a sale. The maximum amount that
17may be charged by a seller for a documentary fee is the base
18documentary fee beginning January 1, 2008 until January 1,
192020, of $150, which shall be subject to an annual rate
20adjustment equal to the percentage of change in the Bureau of
21Labor Statistics Consumer Price Index. Every retail
22installment contract under this Act shall contain or be
23accompanied by a notice containing the following information:
24 "DOCUMENTARY FEE. A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE.

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1A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO
2BUYERS FOR HANDLING DOCUMENTS AND PERFORMING SERVICES RELATED
3TO CLOSING OF A SALE. THE BASE DOCUMENTARY FEE BEGINNING
4JANUARY 1, 2008, WAS $150. THE MAXIMUM AMOUNT THAT MAY BE
5CHARGED FOR A DOCUMENTARY FEE IS THE BASE DOCUMENTARY FEE OF
6$150, WHICH SHALL BE SUBJECT TO AN ANNUAL RATE ADJUSTMENT EQUAL
7TO THE PERCENTAGE OF CHANGE IN THE BUREAU OF LABOR STATISTICS
8CONSUMER PRICE INDEX. THIS NOTICE IS REQUIRED BY LAW."
9 (b) A seller in a retail installment contract may add a
10"documentary fee" for processing documents and performing
11services related to closing of a sale. The maximum amount that
12may be charged by a seller for a documentary fee is the base
13documentary fee beginning January 1, 2020, of $300, which shall
14be subject to an annual rate adjustment equal to the percentage
15of change in the Bureau of Labor Statistics Consumer Price
16Index. Every retail installment contract under this Act shall
17contain or be accompanied by a notice containing the following
18information:
19 "DOCUMENTARY FEE. A DOCUMENTARY FEE IS NOT AN OFFICIAL FEE.
20A DOCUMENTARY FEE IS NOT REQUIRED BY LAW, BUT MAY BE CHARGED TO
21BUYERS FOR HANDLING DOCUMENTS AND PERFORMING SERVICES RELATED
22TO CLOSING OF A SALE. THE BASE DOCUMENTARY FEE BEGINNING
23JANUARY 1, 2020, WAS $300. THE MAXIMUM AMOUNT THAT MAY BE
24CHARGED FOR A DOCUMENTARY FEE IS THE BASE DOCUMENTARY FEE OF
25$300, WHICH SHALL BE SUBJECT TO AN ANNUAL RATE ADJUSTMENT EQUAL
26TO THE PERCENTAGE OF CHANGE IN THE BUREAU OF LABOR STATISTICS

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1CONSUMER PRICE INDEX. THIS NOTICE IS REQUIRED BY LAW."
2(Source: P.A. 95-280, eff. 1-1-08.)
3
Article 20. Illinois Works Jobs Program Act
4 Section 20-1. Short title. This Article may be cited as the
5Illinois Works Jobs Program Act. References in this Article to
6"this Act" mean this Article.
7 Section 20-5. Findings. It is in the public policy interest
8of the State to ensure that all Illinois residents have access
9to State capital projects and careers in the construction
10industry and building trades, including those who have been
11historically underrepresented in those trades. To ensure that
12those interests are met, the General Assembly hereby creates
13the Illinois Works Preapprenticeship Program and the Illinois
14Works Apprenticeship Initiative.
15 Section 20-10. Definitions.
16 "Apprentice" means a participant in an apprenticeship
17program approved by and registered with the United States
18Department of Labor's Bureau of Apprenticeship and Training.
19 "Apprenticeship program" means an apprenticeship and
20training program approved by and registered with the United
21States Department of Labor's Bureau of Apprenticeship and
22Training.

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1 "Bid credit" means a virtual dollar for a contractor or
2subcontractor to use toward future bids for public works
3contracts.
4 "Community-based organization" means a nonprofit
5organization selected by the Department to participate in the
6Illinois Works Preapprenticeship Program. To qualify as a
7"community-based organization", the organization must
8demonstrate the following:
9 (1) the ability to effectively serve diverse and
10 underrepresented populations, including by providing
11 employment services to such populations;
12 (2) knowledge of the construction and building trades;
13 (3) the ability to recruit, prescreen, and provide
14 preapprenticeship training to prepare workers for
15 employment in the construction and building trades; and
16 (4) a plan to provide the following:
17 (A) preparatory classes;
18 (B) workplace readiness skills, such as resume
19 preparation and interviewing techniques;
20 (C) strategies for overcoming barriers to entry
21 and completion of an apprenticeship program; and
22 (D) any prerequisites for acceptance into an
23 apprenticeship program.
24 "Contractor" means a person, corporation, partnership,
25limited liability company, or joint venture entering into a
26contract with the State or any State agency to construct a

SB0690 Enrolled- 200 -LRB101 04451 HLH 49459 b
1public work.
2 "Department" means the Department of Commerce and Economic
3Opportunity.
4 "Labor hours" means the total hours for workers who are
5receiving an hourly wage and who are directly employed for the
6public works project. "Labor hours" includes hours performed by
7workers employed by the contractor and subcontractors on the
8public works project. "Labor hours" does not include hours
9worked by the forepersons, superintendents, owners, and
10workers who are not subject to prevailing wage requirements.
11 "Minorities" means minority persons as defined in the
12Business Enterprise for Minorities, Women, and Persons with
13Disabilities Act.
14 "Public works" means all projects that constitute public
15works under the Prevailing Wage Act.
16 "Subcontractor" means a person, corporation, partnership,
17limited liability company, or joint venture that has contracted
18with the contractor to perform all or part of the work to
19construct a public work by a contractor.
20 "Underrepresented populations" means populations
21identified by the Department that historically have had
22barriers to entry or advancement in the workforce.
23"Underrepresented populations" includes, but is not limited
24to, minorities, women, and veterans.
25 Section 20-15. Illinois Works Preapprenticeship Program;

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1Illinois Works Bid Credit Program.
2 (a) The Illinois Works Preapprenticeship Program is
3established and shall be administered by the Department. The
4goal of the Illinois Works Preapprenticeship Program is to
5create a network of community-based organizations throughout
6the State that will recruit, prescreen, and provide
7preapprenticeship skills training to create a qualified,
8diverse pipeline of workers who are prepared for careers in the
9construction and building trades. Upon completion of the
10Illinois Works Preapprenticeship Program, the candidates will
11be skilled and work-ready.
12 (b) There is created the Illinois Works Fund, a special
13fund in the State treasury. The Illinois Works Fund shall be
14administered by the Department. The Illinois Works Fund shall
15be used to provide funding for community-based organizations
16throughout the State. In addition to any other transfers that
17may be provided for by law, on and after July 1, 2019 and until
18June 30, 2020, at the direction of the Director of the
19Governor's Office of Management and Budget, the State
20Comptroller shall direct and the State Treasurer shall transfer
21amounts not exceeding a total of $25,000,000 from the Rebuild
22Illinois Projects Fund to the Illinois Works Fund.
23 (c) Each community-based organization that receives
24funding from the Illinois Works Fund shall provide an annual
25report to the Illinois Works Review Panel by April 1 of each
26calendar year. The annual report shall include the following

SB0690 Enrolled- 202 -LRB101 04451 HLH 49459 b
1information:
2 (1) a description of the community-based
3 organization's recruitment, screening, and training
4 efforts;
5 (2) the number of individuals who apply to, participate
6 in, and complete the community-based organization's
7 program, broken down by race, gender, age, and veteran
8 status; and
9 (3) the number of the individuals referenced in item
10 (2) of this subsection who are initially accepted and
11 placed into apprenticeship programs in the construction
12 and building trades.
13 (d) The Department shall create and administer the Illinois
14Works Bid Credit Program that shall provide economic
15incentives, through bid credits, to encourage contractors and
16subcontractors to provide contracting and employment
17opportunities to historically underrepresented populations in
18the construction industry.
19 The Illinois Works Bid Credit Program shall allow
20contractors and subcontractors to earn bid credits for use
21toward future bids for public works projects in order to
22increase the chances that the contractor and the subcontractors
23will be selected.
24 Contractors or subcontractors may be eligible for bid
25credits for employing apprentices who have completed the
26Illinois Works Preapprenticeship Program. Contractors or

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1subcontractors shall earn bid credits at a rate established by
2the Department and published on the Department's website,
3including any appropriate caps.
4 The Illinois Works Credit Bank is hereby created and shall
5be administered by the Department. The Illinois Works Credit
6Bank shall track the bid credits.
7 A contractor or subcontractor who has been awarded bid
8credits under any other State program for employing apprentices
9who have completed the Illinois Works Preapprenticeship
10Program is not eligible to receive bid credits under the
11Illinois Works Bid Credit Program relating to the same
12contract.
13 The Department shall report to the Illinois Works Review
14Panel the following: (i) the number of bid credits awarded by
15the Department; (ii) the number of bid credits submitted by the
16contractor or subcontractor to the agency administering the
17public works contract; and (iii) the number of bid credits
18accepted by the agency for such contract. Any agency that
19awards bid credits pursuant to the Illinois Works Credit Bank
20Program shall report to the Department the number of bid
21credits it accepted for the public works contract.
22 Upon a finding that a contractor or subcontractor has
23reported falsified records to the Department in order to
24fraudulently obtain bid credits, the Department shall
25permanently bar the contractor or subcontractor from
26participating in the Illinois Works Bid Credit Program and may

SB0690 Enrolled- 204 -LRB101 04451 HLH 49459 b
1suspend the contractor or subcontractor from bidding on or
2participating in any public works project. False or fraudulent
3claims for payment relating to false bid credits may be subject
4to damages and penalties under applicable law.
5 (e) The Department shall adopt any rules deemed necessary
6to implement this Section.
7 Section 20-20. Illinois Works Apprenticeship Initiative.
8 (a) The Illinois Works Apprenticeship Initiative is
9established and shall be administered by the Department.
10 (1) Subject to the exceptions set forth in subsection
11 (b) of this Section, apprentices shall be utilized on all
12 public works projects in accordance with this subsection
13 (a).
14 (2) For public works projects, the goal of the Illinois
15 Works Apprenticeship Initiative is that apprentices will
16 perform either 10% of the total labor hours actually worked
17 in each prevailing wage classification or 10% of the
18 estimated labor hours in each prevailing wage
19 classification, whichever is less.
20 (b) Before or during the term of a contract subject to this
21Section, the Department may reduce or waive the goals set forth
22in paragraph (2) of subsection (a). Prior to the Department
23granting a request for a reduction or waiver, the Department
24shall hold a public hearing and shall consult with the Business
25Enterprise Council under the Business Enterprise for

SB0690 Enrolled- 205 -LRB101 04451 HLH 49459 b
1Minorities, Women, and Persons with Disabilities Act and the
2Chief Procurement Officer of the agency administering the
3public works contract. The Department may grant a reduction or
4waiver upon a determination that:
5 (1) the contractor or subcontractor has demonstrated
6 that insufficient apprentices are available;
7 (2) the reasonable and necessary requirements of the
8 contract do not allow the goal to be met;
9 (3) there is a disproportionately high ratio of
10 material costs to labor hours that makes meeting the goal
11 infeasible; or
12 (4) apprentice labor hour goals conflict with existing
13 requirements, including federal requirements, in
14 connection with the public work.
15 (c) Contractors and subcontractors must submit a
16certification to the Department and the agency that is
17administering the contract demonstrating that the contractor
18or subcontractor has either:
19 (1) met the apprentice labor hour goals set forth in
20 paragraph (2) of subsection (a); or
21 (2) received a reduction or waiver pursuant to
22 subsection (b).
23 It shall be deemed to be a material breach of the contract
24and entitle the State to declare a default, terminate the
25contract, and exercise those remedies provided for in the
26contract, at law, or in equity if the contractor or

SB0690 Enrolled- 206 -LRB101 04451 HLH 49459 b
1subcontractor fails to submit the certification required in
2this subsection or submits false or misleading information.
3 (d) No later than one year after the effective date of this
4Act, and by April 1 of every calendar year thereafter, the
5Department of Labor shall submit a report to the Illinois Works
6Review Panel regarding the use of apprentices under the
7Illinois Works Apprenticeship Initiative for public works
8projects. To the extent it is available, the report shall
9include the following information:
10 (1) the total number of labor hours on each project and
11 the percentage of labor hours actually worked by
12 apprentices on each public works project;
13 (2) the number of apprentices used in each public works
14 project, broken down by trade; and
15 (3) the number and percentage of minorities, women, and
16 veterans utilized as apprentices on each public works
17 project.
18 (e) The Department shall adopt any rules deemed necessary
19to implement the Illinois Works Apprenticeship Initiative.
20 (f) The Illinois Works Apprenticeship Initiative shall not
21interfere with any contracts or program in existence on the
22effective date of this Act.
23 Section 20-25. The Illinois Works Review Panel.
24 (a) The Illinois Works Review Panel is created and shall be
25comprised of 11 members, each serving 3-year terms. The Speaker

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1of the House of Representatives and the President of the Senate
2shall each appoint 2 members. The Minority Leader of the House
3of Representatives and the Minority Leader of the Senate shall
4each appoint one member. The Director of Commerce and Economic
5Opportunity, or his or her designee, shall serve as a member.
6The Governor shall appoint the following individuals to serve
7as members: a representative from a contractor organization; a
8representative from a labor organization; and 2 members of the
9public with workforce development expertise, one of whom shall
10be a representative of a nonprofit organization that addresses
11workforce development.
12 (b) The members of the Illinois Works Review Panel shall
13make recommendations to the Department regarding
14identification and evaluation of community-based
15organizations.
16 (c) The Illinois Works Review Panel shall meet, at least
17quarterly, to review and evaluate (i) the Illinois Works
18Preapprenticeship Program and the Illinois Works
19Apprenticeship Initiative, (ii) ideas to diversify the
20workforce in the construction industry in Illinois, and (iii)
21workforce demographic data collected by the Illinois
22Department of Labor.
23 (d) All State contracts shall include a requirement that
24the contractor and subcontractor shall, upon reasonable
25notice, appear before and respond to requests for information
26from the Illinois Works Review Panel.

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1 (e) By August 1, 2020, and every August 1 thereafter, the
2Illinois Works Review Panel shall report to the General
3Assembly on its evaluation of the Illinois Works
4Preapprenticeship Program and the Illinois Works
5Apprenticeship initiative, including any recommended
6modifications.
7 Section 20-900. The State Finance Act is amended by adding
8Section 5.895 as follows:
9 (30 ILCS 105/5.895 new)
10 Sec. 5.895. The Illinois Works Fund.
11 Section 20-905. The Illinois Procurement Code is amended by
12changing Section 20-10 as follows:
13 (30 ILCS 500/20-10)
14 (Text of Section from P.A. 96-159, 96-588, 97-96, 97-895,
1598-1076, 99-906 and 100-43)
16 Sec. 20-10. Competitive sealed bidding; reverse auction.
17 (a) Conditions for use. All contracts shall be awarded by
18competitive sealed bidding except as otherwise provided in
19Section 20-5.
20 (b) Invitation for bids. An invitation for bids shall be
21issued and shall include a purchase description and the
22material contractual terms and conditions applicable to the

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1procurement.
2 (c) Public notice. Public notice of the invitation for bids
3shall be published in the Illinois Procurement Bulletin at
4least 14 calendar days before the date set in the invitation
5for the opening of bids.
6 (d) Bid opening. Bids shall be opened publicly or through
7an electronic procurement system in the presence of one or more
8witnesses at the time and place designated in the invitation
9for bids. The name of each bidder, including earned and applied
10bid credit from the Illinois Works Jobs Program Act, the amount
11of each bid, and other relevant information as may be specified
12by rule shall be recorded. After the award of the contract, the
13winning bid and the record of each unsuccessful bid shall be
14open to public inspection.
15 (e) Bid acceptance and bid evaluation. Bids shall be
16unconditionally accepted without alteration or correction,
17except as authorized in this Code. Bids shall be evaluated
18based on the requirements set forth in the invitation for bids,
19which may include criteria to determine acceptability such as
20inspection, testing, quality, workmanship, delivery, and
21suitability for a particular purpose. Those criteria that will
22affect the bid price and be considered in evaluation for award,
23such as discounts, transportation costs, and total or life
24cycle costs, shall be objectively measurable. The invitation
25for bids shall set forth the evaluation criteria to be used.
26 (f) Correction or withdrawal of bids. Correction or

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1withdrawal of inadvertently erroneous bids before or after
2award, or cancellation of awards of contracts based on bid
3mistakes, shall be permitted in accordance with rules. After
4bid opening, no changes in bid prices or other provisions of
5bids prejudicial to the interest of the State or fair
6competition shall be permitted. All decisions to permit the
7correction or withdrawal of bids based on bid mistakes shall be
8supported by written determination made by a State purchasing
9officer.
10 (g) Award. The contract shall be awarded with reasonable
11promptness by written notice to the lowest responsible and
12responsive bidder whose bid meets the requirements and criteria
13set forth in the invitation for bids, except when a State
14purchasing officer determines it is not in the best interest of
15the State and by written explanation determines another bidder
16shall receive the award. The explanation shall appear in the
17appropriate volume of the Illinois Procurement Bulletin. The
18written explanation must include:
19 (1) a description of the agency's needs;
20 (2) a determination that the anticipated cost will be
21 fair and reasonable;
22 (3) a listing of all responsible and responsive
23 bidders; and
24 (4) the name of the bidder selected, the total contract
25 price, and the reasons for selecting that bidder.
26 Each chief procurement officer may adopt guidelines to

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1implement the requirements of this subsection (g).
2 The written explanation shall be filed with the Legislative
3Audit Commission and the Procurement Policy Board, and be made
4available for inspection by the public, within 30 calendar days
5after the agency's decision to award the contract.
6 (h) Multi-step sealed bidding. When it is considered
7impracticable to initially prepare a purchase description to
8support an award based on price, an invitation for bids may be
9issued requesting the submission of unpriced offers to be
10followed by an invitation for bids limited to those bidders
11whose offers have been qualified under the criteria set forth
12in the first solicitation.
13 (i) Alternative procedures. Notwithstanding any other
14provision of this Act to the contrary, the Director of the
15Illinois Power Agency may create alternative bidding
16procedures to be used in procuring professional services under
17Section 1-56, subsections (a) and (c) of Section 1-75 and
18subsection (d) of Section 1-78 of the Illinois Power Agency Act
19and Section 16-111.5(c) of the Public Utilities Act and to
20procure renewable energy resources under Section 1-56 of the
21Illinois Power Agency Act. These alternative procedures shall
22be set forth together with the other criteria contained in the
23invitation for bids, and shall appear in the appropriate volume
24of the Illinois Procurement Bulletin.
25 (j) Reverse auction. Notwithstanding any other provision
26of this Section and in accordance with rules adopted by the

SB0690 Enrolled- 212 -LRB101 04451 HLH 49459 b
1chief procurement officer, that chief procurement officer may
2procure supplies or services through a competitive electronic
3auction bidding process after the chief procurement officer
4determines that the use of such a process will be in the best
5interest of the State. The chief procurement officer shall
6publish that determination in his or her next volume of the
7Illinois Procurement Bulletin.
8 An invitation for bids shall be issued and shall include
9(i) a procurement description, (ii) all contractual terms,
10whenever practical, and (iii) conditions applicable to the
11procurement, including a notice that bids will be received in
12an electronic auction manner.
13 Public notice of the invitation for bids shall be given in
14the same manner as provided in subsection (c).
15 Bids shall be accepted electronically at the time and in
16the manner designated in the invitation for bids. During the
17auction, a bidder's price shall be disclosed to other bidders.
18Bidders shall have the opportunity to reduce their bid prices
19during the auction. At the conclusion of the auction, the
20record of the bid prices received and the name of each bidder
21shall be open to public inspection.
22 After the auction period has terminated, withdrawal of bids
23shall be permitted as provided in subsection (f).
24 The contract shall be awarded within 60 calendar days after
25the auction by written notice to the lowest responsible bidder,
26or all bids shall be rejected except as otherwise provided in

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1this Code. Extensions of the date for the award may be made by
2mutual written consent of the State purchasing officer and the
3lowest responsible bidder.
4 This subsection does not apply to (i) procurements of
5professional and artistic services, (ii) telecommunications
6services, communication services, and information services,
7and (iii) contracts for construction projects, including
8design professional services.
9(Source: P.A. 99-906, eff. 6-1-17; 100-43, eff. 8-9-17.)
10 (Text of Section from P.A. 96-159, 96-795, 97-96, 97-895,
1198-1076, 99-906, and 100-43)
12 Sec. 20-10. Competitive sealed bidding; reverse auction.
13 (a) Conditions for use. All contracts shall be awarded by
14competitive sealed bidding except as otherwise provided in
15Section 20-5.
16 (b) Invitation for bids. An invitation for bids shall be
17issued and shall include a purchase description and the
18material contractual terms and conditions applicable to the
19procurement.
20 (c) Public notice. Public notice of the invitation for bids
21shall be published in the Illinois Procurement Bulletin at
22least 14 calendar days before the date set in the invitation
23for the opening of bids.
24 (d) Bid opening. Bids shall be opened publicly or through
25an electronic procurement system in the presence of one or more

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1witnesses at the time and place designated in the invitation
2for bids. The name of each bidder, including earned and applied
3bid credit from the Illinois Works Jobs Program Act, the amount
4of each bid, and other relevant information as may be specified
5by rule shall be recorded. After the award of the contract, the
6winning bid and the record of each unsuccessful bid shall be
7open to public inspection.
8 (e) Bid acceptance and bid evaluation. Bids shall be
9unconditionally accepted without alteration or correction,
10except as authorized in this Code. Bids shall be evaluated
11based on the requirements set forth in the invitation for bids,
12which may include criteria to determine acceptability such as
13inspection, testing, quality, workmanship, delivery, and
14suitability for a particular purpose. Those criteria that will
15affect the bid price and be considered in evaluation for award,
16such as discounts, transportation costs, and total or life
17cycle costs, shall be objectively measurable. The invitation
18for bids shall set forth the evaluation criteria to be used.
19 (f) Correction or withdrawal of bids. Correction or
20withdrawal of inadvertently erroneous bids before or after
21award, or cancellation of awards of contracts based on bid
22mistakes, shall be permitted in accordance with rules. After
23bid opening, no changes in bid prices or other provisions of
24bids prejudicial to the interest of the State or fair
25competition shall be permitted. All decisions to permit the
26correction or withdrawal of bids based on bid mistakes shall be

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1supported by written determination made by a State purchasing
2officer.
3 (g) Award. The contract shall be awarded with reasonable
4promptness by written notice to the lowest responsible and
5responsive bidder whose bid meets the requirements and criteria
6set forth in the invitation for bids, except when a State
7purchasing officer determines it is not in the best interest of
8the State and by written explanation determines another bidder
9shall receive the award. The explanation shall appear in the
10appropriate volume of the Illinois Procurement Bulletin. The
11written explanation must include:
12 (1) a description of the agency's needs;
13 (2) a determination that the anticipated cost will be
14 fair and reasonable;
15 (3) a listing of all responsible and responsive
16 bidders; and
17 (4) the name of the bidder selected, the total contract
18 price, and the reasons for selecting that bidder.
19 Each chief procurement officer may adopt guidelines to
20implement the requirements of this subsection (g).
21 The written explanation shall be filed with the Legislative
22Audit Commission and the Procurement Policy Board, and be made
23available for inspection by the public, within 30 days after
24the agency's decision to award the contract.
25 (h) Multi-step sealed bidding. When it is considered
26impracticable to initially prepare a purchase description to

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1support an award based on price, an invitation for bids may be
2issued requesting the submission of unpriced offers to be
3followed by an invitation for bids limited to those bidders
4whose offers have been qualified under the criteria set forth
5in the first solicitation.
6 (i) Alternative procedures. Notwithstanding any other
7provision of this Act to the contrary, the Director of the
8Illinois Power Agency may create alternative bidding
9procedures to be used in procuring professional services under
10subsections (a) and (c) of Section 1-75 and subsection (d) of
11Section 1-78 of the Illinois Power Agency Act and Section
1216-111.5(c) of the Public Utilities Act and to procure
13renewable energy resources under Section 1-56 of the Illinois
14Power Agency Act. These alternative procedures shall be set
15forth together with the other criteria contained in the
16invitation for bids, and shall appear in the appropriate volume
17of the Illinois Procurement Bulletin.
18 (j) Reverse auction. Notwithstanding any other provision
19of this Section and in accordance with rules adopted by the
20chief procurement officer, that chief procurement officer may
21procure supplies or services through a competitive electronic
22auction bidding process after the chief procurement officer
23determines that the use of such a process will be in the best
24interest of the State. The chief procurement officer shall
25publish that determination in his or her next volume of the
26Illinois Procurement Bulletin.

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1 An invitation for bids shall be issued and shall include
2(i) a procurement description, (ii) all contractual terms,
3whenever practical, and (iii) conditions applicable to the
4procurement, including a notice that bids will be received in
5an electronic auction manner.
6 Public notice of the invitation for bids shall be given in
7the same manner as provided in subsection (c).
8 Bids shall be accepted electronically at the time and in
9the manner designated in the invitation for bids. During the
10auction, a bidder's price shall be disclosed to other bidders.
11Bidders shall have the opportunity to reduce their bid prices
12during the auction. At the conclusion of the auction, the
13record of the bid prices received and the name of each bidder
14shall be open to public inspection.
15 After the auction period has terminated, withdrawal of bids
16shall be permitted as provided in subsection (f).
17 The contract shall be awarded within 60 calendar days after
18the auction by written notice to the lowest responsible bidder,
19or all bids shall be rejected except as otherwise provided in
20this Code. Extensions of the date for the award may be made by
21mutual written consent of the State purchasing officer and the
22lowest responsible bidder.
23 This subsection does not apply to (i) procurements of
24professional and artistic services, (ii) telecommunications
25services, communication services, and information services,
26and (iii) contracts for construction projects, including

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1design professional services.
2(Source: P.A. 99-906, eff. 6-1-17; 100-43, eff. 8-9-17.)
3 Section 20-910. The Prevailing Wage Act is amended by
4changing Section 5 as follows:
5 (820 ILCS 130/5) (from Ch. 48, par. 39s-5)
6 (Text of Section before amendment by P.A. 100-1177)
7 Sec. 5. Certified payroll.
8 (a) Any contractor and each subcontractor who participates
9in public works shall:
10 (1) make and keep, for a period of not less than 3
11 years from the date of the last payment made before January
12 1, 2014 (the effective date of Public Act 98-328) and for a
13 period of 5 years from the date of the last payment made on
14 or after January 1, 2014 (the effective date of Public Act
15 98-328) on a contract or subcontract for public works,
16 records of all laborers, mechanics, and other workers
17 employed by them on the project; the records shall include
18 (i) the worker's name, (ii) the worker's address, (iii) the
19 worker's telephone number when available, (iv) the
20 worker's social security number, (v) the worker's
21 classification or classifications, (vi) the worker's skill
22 level, such as apprentice or journeyman, (vii) (vi) the
23 worker's gross and net wages paid in each pay period,
24 (viii) (vii) the worker's number of hours worked each day,

SB0690 Enrolled- 219 -LRB101 04451 HLH 49459 b
1 (ix) (viii) the worker's starting and ending times of work
2 each day, (x) (ix) the worker's hourly wage rate, (xi) (x)
3 the worker's hourly overtime wage rate, (xii) (xi) the
4 worker's hourly fringe benefit rates, (xiii) (xii) the name
5 and address of each fringe benefit fund, (xiv) (xiii) the
6 plan sponsor of each fringe benefit, if applicable, and
7 (xv) (xiv) the plan administrator of each fringe benefit,
8 if applicable; and
9 (2) no later than the 15th day of each calendar month
10 file a certified payroll for the immediately preceding
11 month with the public body in charge of the project. A
12 certified payroll must be filed for only those calendar
13 months during which construction on a public works project
14 has occurred. The certified payroll shall consist of a
15 complete copy of the records identified in paragraph (1) of
16 this subsection (a), but may exclude the starting and
17 ending times of work each day. The certified payroll shall
18 be accompanied by a statement signed by the contractor or
19 subcontractor or an officer, employee, or agent of the
20 contractor or subcontractor which avers that: (i) he or she
21 has examined the certified payroll records required to be
22 submitted by the Act and such records are true and
23 accurate; (ii) the hourly rate paid to each worker is not
24 less than the general prevailing rate of hourly wages
25 required by this Act; and (iii) the contractor or
26 subcontractor is aware that filing a certified payroll that

SB0690 Enrolled- 220 -LRB101 04451 HLH 49459 b
1 he or she knows to be false is a Class A misdemeanor. A
2 general contractor is not prohibited from relying on the
3 certification of a lower tier subcontractor, provided the
4 general contractor does not knowingly rely upon a
5 subcontractor's false certification. Any contractor or
6 subcontractor subject to this Act and any officer,
7 employee, or agent of such contractor or subcontractor
8 whose duty as such officer, employee, or agent it is to
9 file such certified payroll who willfully fails to file
10 such a certified payroll on or before the date such
11 certified payroll is required by this paragraph to be filed
12 and any person who willfully files a false certified
13 payroll that is false as to any material fact is in
14 violation of this Act and guilty of a Class A misdemeanor.
15 The public body in charge of the project shall keep the
16 records submitted in accordance with this paragraph (2) of
17 subsection (a) before January 1, 2014 (the effective date
18 of Public Act 98-328) for a period of not less than 3
19 years, and the records submitted in accordance with this
20 paragraph (2) of subsection (a) on or after January 1, 2014
21 (the effective date of Public Act 98-328) for a period of 5
22 years, from the date of the last payment for work on a
23 contract or subcontract for public works. The records
24 submitted in accordance with this paragraph (2) of
25 subsection (a) shall be considered public records, except
26 an employee's address, telephone number, and social

SB0690 Enrolled- 221 -LRB101 04451 HLH 49459 b
1 security number, and made available in accordance with the
2 Freedom of Information Act. The public body shall accept
3 any reasonable submissions by the contractor that meet the
4 requirements of this Section.
5 A contractor, subcontractor, or public body may retain
6records required under this Section in paper or electronic
7format.
8 (b) Upon 7 business days' notice, the contractor and each
9subcontractor shall make available for inspection and copying
10at a location within this State during reasonable hours, the
11records identified in paragraph (1) of subsection (a) of this
12Section to the public body in charge of the project, its
13officers and agents, the Director of Labor and his deputies and
14agents, and to federal, State, or local law enforcement
15agencies and prosecutors.
16 (c) A contractor or subcontractor who remits contributions
17to fringe benefit funds that are jointly maintained and jointly
18governed by one or more employers and one or more labor
19organizations in accordance with the federal Labor Management
20Relations Act shall make and keep certified payroll records
21that include the information required under items (i) through
22(ix) (viii) of paragraph (1) of subsection (a) only. However,
23the information required under items (x) (ix) through (xv)
24(xiv) of paragraph (1) of subsection (a) shall be required for
25any contractor or subcontractor who remits contributions to a
26fringe benefit fund that is not jointly maintained and jointly

SB0690 Enrolled- 222 -LRB101 04451 HLH 49459 b
1governed by one or more employers and one or more labor
2organizations in accordance with the federal Labor Management
3Relations Act.
4(Source: P.A. 97-571, eff. 1-1-12; 98-328, eff. 1-1-14; 98-482,
5eff. 1-1-14; 98-756, eff. 7-16-14.)
6 (Text of Section after amendment by P.A. 100-1177)
7 Sec. 5. Certified payroll.
8 (a) Any contractor and each subcontractor who participates
9in public works shall:
10 (1) make and keep, for a period of not less than 3
11 years from the date of the last payment made before January
12 1, 2014 (the effective date of Public Act 98-328) and for a
13 period of 5 years from the date of the last payment made on
14 or after January 1, 2014 (the effective date of Public Act
15 98-328) on a contract or subcontract for public works,
16 records of all laborers, mechanics, and other workers
17 employed by them on the project; the records shall include
18 (i) the worker's name, (ii) the worker's address, (iii) the
19 worker's telephone number when available, (iv) the last 4
20 digits of the worker's social security number, (v) the
21 worker's gender, (vi) the worker's race, (vii) the worker's
22 ethnicity, (viii) veteran status, (ix) the worker's
23 classification or classifications, (x) the worker's skill
24 level, such as apprentice or journeyman, (xi) (x) the
25 worker's gross and net wages paid in each pay period, (xii)

SB0690 Enrolled- 223 -LRB101 04451 HLH 49459 b
1 (xi) the worker's number of hours worked each day, (xiii)
2 (xii) the worker's starting and ending times of work each
3 day, (xiv) (xiii) the worker's hourly wage rate, (xv) (xiv)
4 the worker's hourly overtime wage rate, (xvi) (xv) the
5 worker's hourly fringe benefit rates, (xvii) (xvi) the name
6 and address of each fringe benefit fund, (xviii) (xvii) the
7 plan sponsor of each fringe benefit, if applicable, and
8 (xix) (xviii) the plan administrator of each fringe
9 benefit, if applicable; and
10 (2) no later than the 15th day of each calendar month
11 file a certified payroll for the immediately preceding
12 month with the public body in charge of the project until
13 the Department of Labor activates the database created
14 under Section 5.1 at which time certified payroll shall
15 only be submitted to that database, except for projects
16 done by State agencies that opt to have contractors submit
17 certified payrolls directly to that State agency. A State
18 agency that opts to directly receive certified payrolls
19 must submit the required information in a specified
20 electronic format to the Department of Labor no later than
21 10 days after the certified payroll was filed with the
22 State agency. A certified payroll must be filed for only
23 those calendar months during which construction on a public
24 works project has occurred. The certified payroll shall
25 consist of a complete copy of the records identified in
26 paragraph (1) of this subsection (a), but may exclude the

SB0690 Enrolled- 224 -LRB101 04451 HLH 49459 b
1 starting and ending times of work each day. The certified
2 payroll shall be accompanied by a statement signed by the
3 contractor or subcontractor or an officer, employee, or
4 agent of the contractor or subcontractor which avers that:
5 (i) he or she has examined the certified payroll records
6 required to be submitted by the Act and such records are
7 true and accurate; (ii) the hourly rate paid to each worker
8 is not less than the general prevailing rate of hourly
9 wages required by this Act; and (iii) the contractor or
10 subcontractor is aware that filing a certified payroll that
11 he or she knows to be false is a Class A misdemeanor. A
12 general contractor is not prohibited from relying on the
13 certification of a lower tier subcontractor, provided the
14 general contractor does not knowingly rely upon a
15 subcontractor's false certification. Any contractor or
16 subcontractor subject to this Act and any officer,
17 employee, or agent of such contractor or subcontractor
18 whose duty as such officer, employee, or agent it is to
19 file such certified payroll who willfully fails to file
20 such a certified payroll on or before the date such
21 certified payroll is required by this paragraph to be filed
22 and any person who willfully files a false certified
23 payroll that is false as to any material fact is in
24 violation of this Act and guilty of a Class A misdemeanor.
25 The public body in charge of the project shall keep the
26 records submitted in accordance with this paragraph (2) of

SB0690 Enrolled- 225 -LRB101 04451 HLH 49459 b
1 subsection (a) before January 1, 2014 (the effective date
2 of Public Act 98-328) for a period of not less than 3
3 years, and the records submitted in accordance with this
4 paragraph (2) of subsection (a) on or after January 1, 2014
5 (the effective date of Public Act 98-328) for a period of 5
6 years, from the date of the last payment for work on a
7 contract or subcontract for public works or until the
8 Department of Labor activates the database created under
9 Section 5.1, whichever is less. After the activation of the
10 database created under Section 5.1, the Department of Labor
11 rather than the public body in charge of the project shall
12 keep the records and maintain the database. The records
13 submitted in accordance with this paragraph (2) of
14 subsection (a) shall be considered public records, except
15 an employee's address, telephone number, social security
16 number, race, ethnicity, and gender, and made available in
17 accordance with the Freedom of Information Act. The public
18 body shall accept any reasonable submissions by the
19 contractor that meet the requirements of this Section.
20 A contractor, subcontractor, or public body may retain
21records required under this Section in paper or electronic
22format.
23 (b) Upon 7 business days' notice, the contractor and each
24subcontractor shall make available for inspection and copying
25at a location within this State during reasonable hours, the
26records identified in paragraph (1) of subsection (a) of this

SB0690 Enrolled- 226 -LRB101 04451 HLH 49459 b
1Section to the public body in charge of the project, its
2officers and agents, the Director of Labor and his deputies and
3agents, and to federal, State, or local law enforcement
4agencies and prosecutors.
5 (c) A contractor or subcontractor who remits contributions
6to fringe benefit funds that are jointly maintained and jointly
7governed by one or more employers and one or more labor
8organizations in accordance with the federal Labor Management
9Relations Act shall make and keep certified payroll records
10that include the information required under items (i) through
11(viii) of paragraph (1) of subsection (a) only. However, the
12information required under items (ix) through (xv) (xiv) of
13paragraph (1) of subsection (a) shall be required for any
14contractor or subcontractor who remits contributions to a
15fringe benefit fund that is not jointly maintained and jointly
16governed by one or more employers and one or more labor
17organizations in accordance with the federal Labor Management
18Relations Act.
19(Source: P.A. 100-1177, eff. 6-1-19.)
20
Article 25. Sports Wagering Act
21 Section 25-1. Short title. This Article may be cited as the
22Sports Wagering Act. References in this Article to "this Act"
23mean this Article.

SB0690 Enrolled- 227 -LRB101 04451 HLH 49459 b
1 Section 25-5. Legislative findings. The General Assembly
2recognizes the promotion of public safety is an important
3consideration for sports leagues, teams, players, and fans at
4large. All persons who present sporting contests are encouraged
5to take reasonable measures to ensure the safety and security
6of all involved or attending sporting contests. Persons who
7present sporting contests are encouraged to establish codes of
8conduct that forbid all persons associated with the sporting
9contest from engaging in violent behavior and to hire, train,
10and equip safety and security personnel to enforce those codes
11of conduct. Persons who present sporting contests are further
12encouraged to provide public notice of those codes of conduct.
13 Section 25-10. Definitions. As used in this Act:
14 "Adjusted gross sports wagering receipts" means a master
15sports wagering licensee's gross sports wagering receipts,
16less winnings paid to wagerers in such games.
17 "Athlete" means any current or former professional athlete
18or collegiate athlete.
19 "Board" means the Illinois Gaming Board.
20 "Covered persons" includes athletes; umpires, referees,
21and officials; personnel associated with clubs, teams,
22leagues, and athletic associations; medical professionals
23(including athletic trainers) who provide services to athletes
24and players; and the family members and associates of these
25persons where required to serve the purposes of this Act.

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1 "Department" means the Department of the Lottery.
2 "Gaming facility" means a facility at which gambling
3operations are conducted under the Illinois Gambling Act,
4pari-mutuel wagering is conducted under the Illinois Horse
5Racing Act of 1975, or sports wagering is conducted under this
6Act.
7 "Official league data" means statistics, results,
8outcomes, and other data related to a sports event obtained
9pursuant to an agreement with the relevant sports governing
10body, or an entity expressly authorized by the sports governing
11body to provide such information to licensees, that authorizes
12the use of such data for determining the outcome of tier 2
13sports wagers on such sports events.
14 "Organization licensee" has the meaning given to that term
15in the Illinois Horse Racing Act of 1975.
16 "Owners licensee" means the holder of an owners license
17under the Illinois Gambling Act.
18 "Person" means an individual, partnership, committee,
19association, corporation, or any other organization or group of
20persons.
21 "Personal biometric data" means an athlete's information
22derived from DNA, heart rate, blood pressure, perspiration
23rate, internal or external body temperature, hormone levels,
24glucose levels, hydration levels, vitamin levels, bone
25density, muscle density, and sleep patterns.
26 "Prohibited conduct" includes any statement, action, and

SB0690 Enrolled- 229 -LRB101 04451 HLH 49459 b
1other communication intended to influence, manipulate, or
2control a betting outcome of a sporting contest or of any
3individual occurrence or performance in a sporting contest in
4exchange for financial gain or to avoid financial or physical
5harm. "Prohibited conduct" includes statements, actions, and
6communications made to a covered person by a third party, such
7as a family member or through social media. "Prohibited
8conduct" does not include statements, actions, or
9communications made or sanctioned by a team or sports governing
10body.
11 "Qualified applicant" means an applicant for a license
12under this Act whose application meets the mandatory minimum
13qualification criteria as required by the Board.
14 "Sporting contest" means a sports event or game on which
15the State allows sports wagering to occur under this Act.
16 "Sports event" means a professional sport or athletic
17event, a collegiate sport or athletic event, a motor race
18event, or any other event or competition of relative skill
19authorized by the Board under this Act.
20 "Sports facility" means a facility that hosts sports events
21and holds a seating capacity greater than 17,000 persons.
22 "Sports governing body" means the organization that
23prescribes final rules and enforces codes of conduct with
24respect to a sports event and participants therein.
25 "Sports wagering" means accepting wagers on sports events
26or portions of sports events, or on the individual performance

SB0690 Enrolled- 230 -LRB101 04451 HLH 49459 b
1statistics of athletes in a sports event or combination of
2sports events, by any system or method of wagering, including,
3but not limited to, in person or over the Internet through
4websites and on mobile devices. "Sports wagering" includes, but
5is not limited to, single-game bets, teaser bets, parlays,
6over-under, moneyline, pools, exchange wagering, in-game
7wagering, in-play bets, proposition bets, and straight bets.
8 "Sports wagering account" means a financial record
9established by a master sports wagering licensee for an
10individual patron in which the patron may deposit and withdraw
11funds for sports wagering and other authorized purchases and to
12which the master sports wagering licensee may credit winnings
13or other amounts due to that patron or authorized by that
14patron.
15 "Tier 1 sports wager" means a sports wager that is
16determined solely by the final score or final outcome of the
17sports event and is placed before the sports event has begun.
18 "Tier 2 sports wager" means a sports wager that is not a
19tier 1 sports wager.
20 "Wager" means a sum of money or thing of value risked on an
21uncertain occurrence.
22 "Winning bidder" means a qualified applicant for a master
23sports wagering license chosen through the competitive
24