Bill Text: IL SB2026 | 2017-2018 | 100th General Assembly | Introduced


Bill Title: Amends the Retailers' Occupation Tax Act. Provides that female and male condoms shall be taxed by the State at a rate of 1% (currently, 6.25%). Provides that the net revenue from the 1% tax collected from the sale of female and male condoms shall be deposited into the State and Local Sales Tax Reform Fund. Amends the Use Tax, Service Occupation Tax, and Service Occupation Use Tax Acts to make conforming changes.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2017-05-05 - Rule 3-9(a) / Re-referred to Assignments [SB2026 Detail]

Download: Illinois-2017-SB2026-Introduced.html


100TH GENERAL ASSEMBLY
State of Illinois
2017 and 2018
SB2026

Introduced 2/10/2017, by Sen. Toi W. Hutchinson

SYNOPSIS AS INTRODUCED:
35 ILCS 105/3-5.5
35 ILCS 105/3-10
35 ILCS 105/9 from Ch. 120, par. 439.9
35 ILCS 110/3-5.5
35 ILCS 110/3-10 from Ch. 120, par. 439.33-10
35 ILCS 110/9 from Ch. 120, par. 439.39
35 ILCS 115/3-5.5
35 ILCS 115/3-10 from Ch. 120, par. 439.103-10
35 ILCS 115/9 from Ch. 120, par. 439.109
35 ILCS 120/2-5.5
35 ILCS 120/2-10
35 ILCS 120/3 from Ch. 120, par. 442

Amends the Retailers' Occupation Tax Act. Provides that female and male condoms shall be taxed by the State at a rate of 1% (currently, 6.25%). Provides that the net revenue from the 1% tax collected from the sale of female and male condoms shall be deposited into the State and Local Sales Tax Reform Fund. Amends the Use Tax, Service Occupation Tax, and Service Occupation Use Tax Acts to make conforming changes.
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FISCAL NOTE ACT MAY APPLY

A BILL FOR

SB2026LRB100 08814 HLH 18955 b
1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Use Tax Act is amended by changing Sections
53-5.5, 3-10, and 9 as follows:
6 (35 ILCS 105/3-5.5)
7 Sec. 3-5.5. Food and drugs sold by not-for-profit
8organizations; exemption. The Department shall not collect the
91% tax imposed on food for human consumption that is to be
10consumed off the premises where it is sold (other than
11alcoholic beverages, soft drinks, and food that has been
12prepared for immediate consumption) and prescription and
13nonprescription medicines, drugs, medical appliances, female
14and male condoms, and insulin, urine testing materials,
15syringes, and needles used by diabetics, for human use from any
16not-for-profit organization, that sells food in a food
17distribution program at a price below the retail cost of the
18food to purchasers who, as a condition of participation in the
19program, are required to perform community service, located in
20a county or municipality that notifies the Department, in
21writing, that the county or municipality does not want the tax
22to be collected from any of such organizations located in the
23county or municipality.

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1(Source: P.A. 88-374.)
2 (35 ILCS 105/3-10)
3 Sec. 3-10. Rate of tax. Unless otherwise provided in this
4Section, the tax imposed by this Act is at the rate of 6.25% of
5either the selling price or the fair market value, if any, of
6the tangible personal property. In all cases where property
7functionally used or consumed is the same as the property that
8was purchased at retail, then the tax is imposed on the selling
9price of the property. In all cases where property functionally
10used or consumed is a by-product or waste product that has been
11refined, manufactured, or produced from property purchased at
12retail, then the tax is imposed on the lower of the fair market
13value, if any, of the specific property so used in this State
14or on the selling price of the property purchased at retail.
15For purposes of this Section "fair market value" means the
16price at which property would change hands between a willing
17buyer and a willing seller, neither being under any compulsion
18to buy or sell and both having reasonable knowledge of the
19relevant facts. The fair market value shall be established by
20Illinois sales by the taxpayer of the same property as that
21functionally used or consumed, or if there are no such sales by
22the taxpayer, then comparable sales or purchases of property of
23like kind and character in Illinois.
24 Beginning on July 1, 2000 and through December 31, 2000,
25with respect to motor fuel, as defined in Section 1.1 of the

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1Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
2the Use Tax Act, the tax is imposed at the rate of 1.25%.
3 Beginning on August 6, 2010 through August 15, 2010, with
4respect to sales tax holiday items as defined in Section 3-6 of
5this Act, the tax is imposed at the rate of 1.25%.
6 With respect to gasohol, the tax imposed by this Act
7applies to (i) 70% of the proceeds of sales made on or after
8January 1, 1990, and before July 1, 2003, (ii) 80% of the
9proceeds of sales made on or after July 1, 2003 and on or
10before December 31, 2018, and (iii) 100% of the proceeds of
11sales made thereafter. If, at any time, however, the tax under
12this Act on sales of gasohol is imposed at the rate of 1.25%,
13then the tax imposed by this Act applies to 100% of the
14proceeds of sales of gasohol made during that time.
15 With respect to majority blended ethanol fuel, the tax
16imposed by this Act does not apply to the proceeds of sales
17made on or after July 1, 2003 and on or before December 31,
182018 but applies to 100% of the proceeds of sales made
19thereafter.
20 With respect to biodiesel blends with no less than 1% and
21no more than 10% biodiesel, the tax imposed by this Act applies
22to (i) 80% of the proceeds of sales made on or after July 1,
232003 and on or before December 31, 2018 and (ii) 100% of the
24proceeds of sales made thereafter. If, at any time, however,
25the tax under this Act on sales of biodiesel blends with no
26less than 1% and no more than 10% biodiesel is imposed at the

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1rate of 1.25%, then the tax imposed by this Act applies to 100%
2of the proceeds of sales of biodiesel blends with no less than
31% and no more than 10% biodiesel made during that time.
4 With respect to 100% biodiesel and biodiesel blends with
5more than 10% but no more than 99% biodiesel, the tax imposed
6by this Act does not apply to the proceeds of sales made on or
7after July 1, 2003 and on or before December 31, 2018 but
8applies to 100% of the proceeds of sales made thereafter.
9 With respect to food for human consumption that is to be
10consumed off the premises where it is sold (other than
11alcoholic beverages, soft drinks, and food that has been
12prepared for immediate consumption) and prescription and
13nonprescription medicines, drugs, medical appliances, female
14and male condoms, products classified as Class III medical
15devices by the United States Food and Drug Administration that
16are used for cancer treatment pursuant to a prescription, as
17well as any accessories and components related to those
18devices, modifications to a motor vehicle for the purpose of
19rendering it usable by a person with a disability, and insulin,
20urine testing materials, syringes, and needles used by
21diabetics, for human use, the tax is imposed at the rate of 1%.
22For the purposes of this Section, until September 1, 2009: the
23term "soft drinks" means any complete, finished, ready-to-use,
24non-alcoholic drink, whether carbonated or not, including but
25not limited to soda water, cola, fruit juice, vegetable juice,
26carbonated water, and all other preparations commonly known as

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

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

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1the 98th General Assembly, "prescription and nonprescription
2medicines and drugs" includes medical cannabis purchased from a
3registered dispensing organization under the Compassionate Use
4of Medical Cannabis Pilot Program Act.
5 If the property that is purchased at retail from a retailer
6is acquired outside Illinois and used outside Illinois before
7being brought to Illinois for use here and is taxable under
8this Act, the "selling price" on which the tax is computed
9shall be reduced by an amount that represents a reasonable
10allowance for depreciation for the period of prior out-of-state
11use.
12(Source: P.A. 98-122, eff. 1-1-14; 99-143, eff. 7-27-15;
1399-858, eff. 8-19-16.)
14 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
15 Sec. 9. Except as to motor vehicles, watercraft, aircraft,
16and trailers that are required to be registered with an agency
17of this State, each retailer required or authorized to collect
18the tax imposed by this Act shall pay to the Department the
19amount of such tax (except as otherwise provided) at the time
20when he is required to file his return for the period during
21which such tax was collected, less a discount of 2.1% prior to
22January 1, 1990, and 1.75% on and after January 1, 1990, or $5
23per calendar year, whichever is greater, which is allowed to
24reimburse the retailer for expenses incurred in collecting the
25tax, keeping records, preparing and filing returns, remitting

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1the tax and supplying data to the Department on request. In the
2case of retailers who report and pay the tax on a transaction
3by transaction basis, as provided in this Section, such
4discount shall be taken with each such tax remittance instead
5of when such retailer files his periodic return. The Department
6may disallow the discount for retailers whose certificate of
7registration is revoked at the time the return is filed, but
8only if the Department's decision to revoke the certificate of
9registration has become final. A retailer need not remit that
10part of any tax collected by him to the extent that he is
11required to remit and does remit the tax imposed by the
12Retailers' Occupation Tax Act, with respect to the sale of the
13same property.
14 Where such tangible personal property is sold under a
15conditional sales contract, or under any other form of sale
16wherein the payment of the principal sum, or a part thereof, is
17extended beyond the close of the period for which the return is
18filed, the retailer, in collecting the tax (except as to motor
19vehicles, watercraft, aircraft, and trailers that are required
20to be registered with an agency of this State), may collect for
21each tax return period, only the tax applicable to that part of
22the selling price actually received during such tax return
23period.
24 Except as provided in this Section, on or before the
25twentieth day of each calendar month, such retailer shall file
26a return for the preceding calendar month. Such return shall be

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1filed on forms prescribed by the Department and shall furnish
2such information as the Department may reasonably require.
3 The Department may require returns to be filed on a
4quarterly basis. If so required, a return for each calendar
5quarter shall be filed on or before the twentieth day of the
6calendar month following the end of such calendar quarter. The
7taxpayer shall also file a return with the Department for each
8of the first two months of each calendar quarter, on or before
9the twentieth day of the following calendar month, stating:
10 1. The name of the seller;
11 2. The address of the principal place of business from
12 which he engages in the business of selling tangible
13 personal property at retail in this State;
14 3. The total amount of taxable receipts received by him
15 during the preceding calendar month from sales of tangible
16 personal property by him during such preceding calendar
17 month, including receipts from charge and time sales, but
18 less all deductions allowed by law;
19 4. The amount of credit provided in Section 2d of this
20 Act;
21 5. The amount of tax due;
22 5-5. The signature of the taxpayer; and
23 6. Such other reasonable information as the Department
24 may require.
25 If a taxpayer fails to sign a return within 30 days after
26the proper notice and demand for signature by the Department,

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1the return shall be considered valid and any amount shown to be
2due on the return shall be deemed assessed.
3 Beginning October 1, 1993, a taxpayer who has an average
4monthly tax liability of $150,000 or more shall make all
5payments required by rules of the Department by electronic
6funds transfer. Beginning October 1, 1994, a taxpayer who has
7an average monthly tax liability of $100,000 or more shall make
8all payments required by rules of the Department by electronic
9funds transfer. Beginning October 1, 1995, a taxpayer who has
10an average monthly tax liability of $50,000 or more shall make
11all payments required by rules of the Department by electronic
12funds transfer. Beginning October 1, 2000, a taxpayer who has
13an annual tax liability of $200,000 or more shall make all
14payments required by rules of the Department by electronic
15funds transfer. The term "annual tax liability" shall be the
16sum of the taxpayer's liabilities under this Act, and under all
17other State and local occupation and use tax laws administered
18by the Department, for the immediately preceding calendar year.
19The term "average monthly tax liability" means the sum of the
20taxpayer's liabilities under this Act, and under all other
21State and local occupation and use tax laws administered by the
22Department, for the immediately preceding calendar year
23divided by 12. Beginning on October 1, 2002, a taxpayer who has
24a tax liability in the amount set forth in subsection (b) of
25Section 2505-210 of the Department of Revenue Law shall make
26all payments required by rules of the Department by electronic

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1funds transfer.
2 Before August 1 of each year beginning in 1993, the
3Department shall notify all taxpayers required to make payments
4by electronic funds transfer. All taxpayers required to make
5payments by electronic funds transfer shall make those payments
6for a minimum of one year beginning on October 1.
7 Any taxpayer not required to make payments by electronic
8funds transfer may make payments by electronic funds transfer
9with the permission of the Department.
10 All taxpayers required to make payment by electronic funds
11transfer and any taxpayers authorized to voluntarily make
12payments by electronic funds transfer shall make those payments
13in the manner authorized by the Department.
14 The Department shall adopt such rules as are necessary to
15effectuate a program of electronic funds transfer and the
16requirements of this Section.
17 Before October 1, 2000, if the taxpayer's average monthly
18tax liability to the Department under this Act, the Retailers'
19Occupation Tax Act, the Service Occupation Tax Act, the Service
20Use Tax Act was $10,000 or more during the preceding 4 complete
21calendar quarters, he shall file a return with the Department
22each month by the 20th day of the month next following the
23month during which such tax liability is incurred and shall
24make payments to the Department on or before the 7th, 15th,
2522nd and last day of the month during which such liability is
26incurred. On and after October 1, 2000, if the taxpayer's

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1average monthly tax liability to the Department under this Act,
2the Retailers' Occupation Tax Act, the Service Occupation Tax
3Act, and the Service Use Tax Act was $20,000 or more during the
4preceding 4 complete calendar quarters, he shall file a return
5with the Department each month by the 20th day of the month
6next following the month during which such tax liability is
7incurred and shall make payment to the Department on or before
8the 7th, 15th, 22nd and last day of the month during which such
9liability is incurred. If the month during which such tax
10liability is incurred began prior to January 1, 1985, each
11payment shall be in an amount equal to 1/4 of the taxpayer's
12actual liability for the month or an amount set by the
13Department not to exceed 1/4 of the average monthly liability
14of the taxpayer to the Department for the preceding 4 complete
15calendar quarters (excluding the month of highest liability and
16the month of lowest liability in such 4 quarter period). If the
17month during which such tax liability is incurred begins on or
18after January 1, 1985, and prior to January 1, 1987, each
19payment shall be in an amount equal to 22.5% of the taxpayer's
20actual liability for the month or 27.5% of the taxpayer's
21liability for the same calendar month of the preceding year. If
22the month during which such tax liability is incurred begins on
23or after January 1, 1987, and prior to January 1, 1988, each
24payment shall be in an amount equal to 22.5% of the taxpayer's
25actual liability for the month or 26.25% of the taxpayer's
26liability for the same calendar month of the preceding year. If

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1the month during which such tax liability is incurred begins on
2or after January 1, 1988, and prior to January 1, 1989, or
3begins on or after January 1, 1996, each payment shall be in an
4amount equal to 22.5% of the taxpayer's actual liability for
5the month or 25% of the taxpayer's liability for the same
6calendar month of the preceding year. If the month during which
7such tax liability is incurred begins on or after January 1,
81989, and prior to January 1, 1996, each payment shall be in an
9amount equal to 22.5% of the taxpayer's actual liability for
10the month or 25% of the taxpayer's liability for the same
11calendar month of the preceding year or 100% of the taxpayer's
12actual liability for the quarter monthly reporting period. The
13amount of such quarter monthly payments shall be credited
14against the final tax liability of the taxpayer's return for
15that month. Before October 1, 2000, once applicable, the
16requirement of the making of quarter monthly payments to the
17Department shall continue until such taxpayer's average
18monthly liability to the Department during the preceding 4
19complete calendar quarters (excluding the month of highest
20liability and the month of lowest liability) is less than
21$9,000, or until such taxpayer's average monthly liability to
22the Department as computed for each calendar quarter of the 4
23preceding complete calendar quarter period is less than
24$10,000. However, if a taxpayer can show the Department that a
25substantial change in the taxpayer's business has occurred
26which causes the taxpayer to anticipate that his average

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1monthly tax liability for the reasonably foreseeable future
2will fall below the $10,000 threshold stated above, then such
3taxpayer may petition the Department for change in such
4taxpayer's reporting status. On and after October 1, 2000, once
5applicable, the requirement of the making of quarter monthly
6payments to the Department shall continue until such taxpayer's
7average monthly liability to the Department during the
8preceding 4 complete calendar quarters (excluding the month of
9highest liability and the month of lowest liability) is less
10than $19,000 or until such taxpayer's average monthly liability
11to the Department as computed for each calendar quarter of the
124 preceding complete calendar quarter period is less than
13$20,000. However, if a taxpayer can show the Department that a
14substantial change in the taxpayer's business has occurred
15which causes the taxpayer to anticipate that his average
16monthly tax liability for the reasonably foreseeable future
17will fall below the $20,000 threshold stated above, then such
18taxpayer may petition the Department for a change in such
19taxpayer's reporting status. The Department shall change such
20taxpayer's reporting status unless it finds that such change is
21seasonal in nature and not likely to be long term. If any such
22quarter monthly payment is not paid at the time or in the
23amount required by this Section, then the taxpayer shall be
24liable for penalties and interest on the difference between the
25minimum amount due and the amount of such quarter monthly
26payment actually and timely paid, except insofar as the

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

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

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1returns.
2 Notwithstanding any other provision in this Act concerning
3the time within which a retailer may file his return, in the
4case of any retailer who ceases to engage in a kind of business
5which makes him responsible for filing returns under this Act,
6such retailer shall file a final return under this Act with the
7Department not more than one month after discontinuing such
8business.
9 In addition, with respect to motor vehicles, watercraft,
10aircraft, and trailers that are required to be registered with
11an agency of this State, every retailer selling this kind of
12tangible personal property shall file, with the Department,
13upon a form to be prescribed and supplied by the Department, a
14separate return for each such item of tangible personal
15property which the retailer sells, except that if, in the same
16transaction, (i) a retailer of aircraft, watercraft, motor
17vehicles or trailers transfers more than one aircraft,
18watercraft, motor vehicle or trailer to another aircraft,
19watercraft, motor vehicle or trailer retailer for the purpose
20of resale or (ii) a retailer of aircraft, watercraft, motor
21vehicles, or trailers transfers more than one aircraft,
22watercraft, motor vehicle, or trailer to a purchaser for use as
23a qualifying rolling stock as provided in Section 3-55 of this
24Act, then that seller may report the transfer of all the
25aircraft, watercraft, motor vehicles or trailers involved in
26that transaction to the Department on the same uniform

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

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

SB2026- 20 -LRB100 08814 HLH 18955 b
1that this procedure will expedite the processing of
2applications for title or registration.
3 With each such transaction reporting return, the retailer
4shall remit the proper amount of tax due (or shall submit
5satisfactory evidence that the sale is not taxable if that is
6the case), to the Department or its agents, whereupon the
7Department shall issue, in the purchaser's name, a tax receipt
8(or a certificate of exemption if the Department is satisfied
9that the particular sale is tax exempt) which such purchaser
10may submit to the agency with which, or State officer with
11whom, he must title or register the tangible personal property
12that is involved (if titling or registration is required) in
13support of such purchaser's application for an Illinois
14certificate or other evidence of title or registration to such
15tangible personal property.
16 No retailer's failure or refusal to remit tax under this
17Act precludes a user, who has paid the proper tax to the
18retailer, from obtaining his certificate of title or other
19evidence of title or registration (if titling or registration
20is required) upon satisfying the Department that such user has
21paid the proper tax (if tax is due) to the retailer. The
22Department shall adopt appropriate rules to carry out the
23mandate of this paragraph.
24 If the user who would otherwise pay tax to the retailer
25wants the transaction reporting return filed and the payment of
26tax or proof of exemption made to the Department before the

SB2026- 21 -LRB100 08814 HLH 18955 b
1retailer is willing to take these actions and such user has not
2paid the tax to the retailer, such user may certify to the fact
3of such delay by the retailer, and may (upon the Department
4being satisfied of the truth of such certification) transmit
5the information required by the transaction reporting return
6and the remittance for tax or proof of exemption directly to
7the Department and obtain his tax receipt or exemption
8determination, in which event the transaction reporting return
9and tax remittance (if a tax payment was required) shall be
10credited by the Department to the proper retailer's account
11with the Department, but without the 2.1% or 1.75% discount
12provided for in this Section being allowed. When the user pays
13the tax directly to the Department, he shall pay the tax in the
14same amount and in the same form in which it would be remitted
15if the tax had been remitted to the Department by the retailer.
16 Where a retailer collects the tax with respect to the
17selling price of tangible personal property which he sells and
18the purchaser thereafter returns such tangible personal
19property and the retailer refunds the selling price thereof to
20the purchaser, such retailer shall also refund, to the
21purchaser, the tax so collected from the purchaser. When filing
22his return for the period in which he refunds such tax to the
23purchaser, the retailer may deduct the amount of the tax so
24refunded by him to the purchaser from any other use tax which
25such retailer may be required to pay or remit to the
26Department, as shown by such return, if the amount of the tax

SB2026- 22 -LRB100 08814 HLH 18955 b
1to be deducted was previously remitted to the Department by
2such retailer. If the retailer has not previously remitted the
3amount of such tax to the Department, he is entitled to no
4deduction under this Act upon refunding such tax to the
5purchaser.
6 Any retailer filing a return under this Section shall also
7include (for the purpose of paying tax thereon) the total tax
8covered by such return upon the selling price of tangible
9personal property purchased by him at retail from a retailer,
10but as to which the tax imposed by this Act was not collected
11from the retailer filing such return, and such retailer shall
12remit the amount of such tax to the Department when filing such
13return.
14 If experience indicates such action to be practicable, the
15Department may prescribe and furnish a combination or joint
16return which will enable retailers, who are required to file
17returns hereunder and also under the Retailers' Occupation Tax
18Act, to furnish all the return information required by both
19Acts on the one form.
20 Where the retailer has more than one business registered
21with the Department under separate registration under this Act,
22such retailer may not file each return that is due as a single
23return covering all such registered businesses, but shall file
24separate returns for each such registered business.
25 Beginning January 1, 1990, each month the Department shall
26pay into the State and Local Sales Tax Reform Fund, a special

SB2026- 23 -LRB100 08814 HLH 18955 b
1fund in the State Treasury which is hereby created, the net
2revenue realized for the preceding month from the 1% tax on
3sales of food for human consumption which is to be consumed off
4the premises where it is sold (other than alcoholic beverages,
5soft drinks and food which has been prepared for immediate
6consumption) and prescription and nonprescription medicines,
7drugs, medical appliances, female and male condoms, products
8classified as Class III medical devices by the United States
9Food and Drug Administration that are used for cancer treatment
10pursuant to a prescription, as well as any accessories and
11components related to those devices, and insulin, urine testing
12materials, syringes and needles used by diabetics.
13 Beginning January 1, 1990, each month the Department shall
14pay into the County and Mass Transit District Fund 4% of the
15net revenue realized for the preceding month from the 6.25%
16general rate on the selling price of tangible personal property
17which is purchased outside Illinois at retail from a retailer
18and which is titled or registered by an agency of this State's
19government.
20 Beginning January 1, 1990, each month the Department shall
21pay into the State and Local Sales Tax Reform Fund, a special
22fund in the State Treasury, 20% of the net revenue realized for
23the preceding month from the 6.25% general rate on the selling
24price of tangible personal property, other than tangible
25personal property which is purchased outside Illinois at retail
26from a retailer and which is titled or registered by an agency

SB2026- 24 -LRB100 08814 HLH 18955 b
1of this State's government.
2 Beginning August 1, 2000, each month the Department shall
3pay into the State and Local Sales Tax Reform Fund 100% of the
4net revenue realized for the preceding month from the 1.25%
5rate on the selling price of motor fuel and gasohol. Beginning
6September 1, 2010, each month the Department shall pay into the
7State and Local Sales Tax Reform Fund 100% of the net revenue
8realized for the preceding month from the 1.25% rate on the
9selling price of sales tax holiday items.
10 Beginning January 1, 1990, each month the Department shall
11pay into the Local Government Tax Fund 16% of the net revenue
12realized for the preceding month from the 6.25% general rate on
13the selling price of tangible personal property which is
14purchased outside Illinois at retail from a retailer and which
15is titled or registered by an agency of this State's
16government.
17 Beginning October 1, 2009, each month the Department shall
18pay into the Capital Projects Fund an amount that is equal to
19an amount estimated by the Department to represent 80% of the
20net revenue realized for the preceding month from the sale of
21candy, grooming and hygiene products, and soft drinks that had
22been taxed at a rate of 1% prior to September 1, 2009 but that
23are now taxed at 6.25%.
24 Beginning July 1, 2011, each month the Department shall pay
25into the Clean Air Act Permit Fund 80% of the net revenue
26realized for the preceding month from the 6.25% general rate on

SB2026- 25 -LRB100 08814 HLH 18955 b
1the selling price of sorbents used in Illinois in the process
2of sorbent injection as used to comply with the Environmental
3Protection Act or the federal Clean Air Act, but the total
4payment into the Clean Air Act Permit Fund under this Act and
5the Retailers' Occupation Tax Act shall not exceed $2,000,000
6in any fiscal year.
7 Beginning July 1, 2013, each month the Department shall pay
8into the Underground Storage Tank Fund from the proceeds
9collected under this Act, the Service Use Tax Act, the Service
10Occupation Tax Act, and the Retailers' Occupation Tax Act an
11amount equal to the average monthly deficit in the Underground
12Storage Tank Fund during the prior year, as certified annually
13by the Illinois Environmental Protection Agency, but the total
14payment into the Underground Storage Tank Fund under this Act,
15the Service Use Tax Act, the Service Occupation Tax Act, and
16the Retailers' Occupation Tax Act shall not exceed $18,000,000
17in any State fiscal year. As used in this paragraph, the
18"average monthly deficit" shall be equal to the difference
19between the average monthly claims for payment by the fund and
20the average monthly revenues deposited into the fund, excluding
21payments made pursuant to this paragraph.
22 Beginning July 1, 2015, of the remainder of the moneys
23received by the Department under this Act, the Service Use Tax
24Act, the Service Occupation Tax Act, and the Retailers'
25Occupation Tax Act, each month the Department shall deposit
26$500,000 into the State Crime Laboratory Fund.

SB2026- 26 -LRB100 08814 HLH 18955 b
1 Of the remainder of the moneys received by the Department
2pursuant to this Act, (a) 1.75% thereof shall be paid into the
3Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
4and after July 1, 1989, 3.8% thereof shall be paid into the
5Build Illinois Fund; provided, however, that if in any fiscal
6year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
7may be, of the moneys received by the Department and required
8to be paid into the Build Illinois Fund pursuant to Section 3
9of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
10Act, Section 9 of the Service Use Tax Act, and Section 9 of the
11Service Occupation Tax Act, such Acts being hereinafter called
12the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
13may be, of moneys being hereinafter called the "Tax Act
14Amount", and (2) the amount transferred to the Build Illinois
15Fund from the State and Local Sales Tax Reform Fund shall be
16less than the Annual Specified Amount (as defined in Section 3
17of the Retailers' Occupation Tax Act), an amount equal to the
18difference shall be immediately paid into the Build Illinois
19Fund from other moneys received by the Department pursuant to
20the Tax Acts; and further provided, that if on the last
21business day of any month the sum of (1) the Tax Act Amount
22required to be deposited into the Build Illinois Bond Account
23in the Build Illinois Fund during such month and (2) the amount
24transferred during such month to the Build Illinois Fund from
25the State and Local Sales Tax Reform Fund shall have been less
26than 1/12 of the Annual Specified Amount, an amount equal to

SB2026- 27 -LRB100 08814 HLH 18955 b
1the difference shall be immediately paid into the Build
2Illinois Fund from other moneys received by the Department
3pursuant to the Tax Acts; and, further provided, that in no
4event shall the payments required under the preceding proviso
5result in aggregate payments into the Build Illinois Fund
6pursuant to this clause (b) for any fiscal year in excess of
7the greater of (i) the Tax Act Amount or (ii) the Annual
8Specified Amount for such fiscal year; and, further provided,
9that the amounts payable into the Build Illinois Fund under
10this clause (b) shall be payable only until such time as the
11aggregate amount on deposit under each trust indenture securing
12Bonds issued and outstanding pursuant to the Build Illinois
13Bond Act is sufficient, taking into account any future
14investment income, to fully provide, in accordance with such
15indenture, for the defeasance of or the payment of the
16principal of, premium, if any, and interest on the Bonds
17secured by such indenture and on any Bonds expected to be
18issued thereafter and all fees and costs payable with respect
19thereto, all as certified by the Director of the Bureau of the
20Budget (now Governor's Office of Management and Budget). If on
21the last business day of any month in which Bonds are
22outstanding pursuant to the Build Illinois Bond Act, the
23aggregate of the moneys deposited in the Build Illinois Bond
24Account in the Build Illinois Fund in such month shall be less
25than the amount required to be transferred in such month from
26the Build Illinois Bond Account to the Build Illinois Bond

SB2026- 28 -LRB100 08814 HLH 18955 b
1Retirement and Interest Fund pursuant to Section 13 of the
2Build Illinois Bond Act, an amount equal to such deficiency
3shall be immediately paid from other moneys received by the
4Department pursuant to the Tax Acts to the Build Illinois Fund;
5provided, however, that any amounts paid to the Build Illinois
6Fund in any fiscal year pursuant to this sentence shall be
7deemed to constitute payments pursuant to clause (b) of the
8preceding sentence and shall reduce the amount otherwise
9payable for such fiscal year pursuant to clause (b) of the
10preceding sentence. The moneys received by the Department
11pursuant to this Act and required to be deposited into the
12Build Illinois Fund are subject to the pledge, claim and charge
13set forth in Section 12 of the Build Illinois Bond Act.
14 Subject to payment of amounts into the Build Illinois Fund
15as provided in the preceding paragraph or in any amendment
16thereto hereafter enacted, the following specified monthly
17installment of the amount requested in the certificate of the
18Chairman of the Metropolitan Pier and Exposition Authority
19provided under Section 8.25f of the State Finance Act, but not
20in excess of the sums designated as "Total Deposit", shall be
21deposited in the aggregate from collections under Section 9 of
22the Use Tax Act, Section 9 of the Service Use Tax Act, Section
239 of the Service Occupation Tax Act, and Section 3 of the
24Retailers' Occupation Tax Act into the McCormick Place
25Expansion Project Fund in the specified fiscal years.
26Fiscal YearTotal Deposit

SB2026- 29 -LRB100 08814 HLH 18955 b
11993 $0
21994 53,000,000
31995 58,000,000
41996 61,000,000
51997 64,000,000
61998 68,000,000
71999 71,000,000
82000 75,000,000
92001 80,000,000
102002 93,000,000
112003 99,000,000
122004103,000,000
132005108,000,000
142006113,000,000
152007119,000,000
162008126,000,000
172009132,000,000
182010139,000,000
192011146,000,000
202012153,000,000
212013161,000,000
222014170,000,000
232015179,000,000
242016189,000,000
252017199,000,000
262018210,000,000

SB2026- 30 -LRB100 08814 HLH 18955 b
12019221,000,000
22020233,000,000
32021246,000,000
42022260,000,000
52023275,000,000
62024 275,000,000
72025 275,000,000
82026 279,000,000
92027 292,000,000
102028 307,000,000
112029 322,000,000
122030 338,000,000
132031 350,000,000
142032 350,000,000
15and
16each fiscal year
17thereafter that bonds
18are outstanding under
19Section 13.2 of the
20Metropolitan Pier and
21Exposition Authority Act,
22but not after fiscal year 2060.
23 Beginning July 20, 1993 and in each month of each fiscal
24year thereafter, one-eighth of the amount requested in the
25certificate of the Chairman of the Metropolitan Pier and
26Exposition Authority for that fiscal year, less the amount

SB2026- 31 -LRB100 08814 HLH 18955 b
1deposited into the McCormick Place Expansion Project Fund by
2the State Treasurer in the respective month under subsection
3(g) of Section 13 of the Metropolitan Pier and Exposition
4Authority Act, plus cumulative deficiencies in the deposits
5required under this Section for previous months and years,
6shall be deposited into the McCormick Place Expansion Project
7Fund, until the full amount requested for the fiscal year, but
8not in excess of the amount specified above as "Total Deposit",
9has been deposited.
10 Subject to payment of amounts into the Build Illinois Fund
11and the McCormick Place Expansion Project Fund pursuant to the
12preceding paragraphs or in any amendments thereto hereafter
13enacted, beginning July 1, 1993 and ending on September 30,
142013, the Department shall each month pay into the Illinois Tax
15Increment Fund 0.27% of 80% of the net revenue realized for the
16preceding month from the 6.25% general rate on the selling
17price of tangible personal property.
18 Subject to payment of amounts into the Build Illinois Fund
19and the McCormick Place Expansion Project Fund pursuant to the
20preceding paragraphs or in any amendments thereto hereafter
21enacted, beginning with the receipt of the first report of
22taxes paid by an eligible business and continuing for a 25-year
23period, the Department shall each month pay into the Energy
24Infrastructure Fund 80% of the net revenue realized from the
256.25% general rate on the selling price of Illinois-mined coal
26that was sold to an eligible business. For purposes of this

SB2026- 32 -LRB100 08814 HLH 18955 b
1paragraph, the term "eligible business" means a new electric
2generating facility certified pursuant to Section 605-332 of
3the Department of Commerce and Economic Opportunity Law of the
4Civil Administrative Code of Illinois.
5 Subject to payment of amounts into the Build Illinois Fund,
6the McCormick Place Expansion Project Fund, the Illinois Tax
7Increment Fund, and the Energy Infrastructure Fund pursuant to
8the preceding paragraphs or in any amendments to this Section
9hereafter enacted, beginning on the first day of the first
10calendar month to occur on or after August 26, 2014 (the
11effective date of Public Act 98-1098) this amendatory Act of
12the 98th General Assembly, each month, from the collections
13made under Section 9 of the Use Tax Act, Section 9 of the
14Service Use Tax Act, Section 9 of the Service Occupation Tax
15Act, and Section 3 of the Retailers' Occupation Tax Act, the
16Department shall pay into the Tax Compliance and Administration
17Fund, to be used, subject to appropriation, to fund additional
18auditors and compliance personnel at the Department of Revenue,
19an amount equal to 1/12 of 5% of 80% of the cash receipts
20collected during the preceding fiscal year by the Audit Bureau
21of the Department under the Use Tax Act, the Service Use Tax
22Act, the Service Occupation Tax Act, the Retailers' Occupation
23Tax Act, and associated local occupation and use taxes
24administered by the Department.
25 Of the remainder of the moneys received by the Department
26pursuant to this Act, 75% thereof shall be paid into the State

SB2026- 33 -LRB100 08814 HLH 18955 b
1Treasury and 25% shall be reserved in a special account and
2used only for the transfer to the Common School Fund as part of
3the monthly transfer from the General Revenue Fund in
4accordance with Section 8a of the State Finance Act.
5 As soon as possible after the first day of each month, upon
6certification of the Department of Revenue, the Comptroller
7shall order transferred and the Treasurer shall transfer from
8the General Revenue Fund to the Motor Fuel Tax Fund an amount
9equal to 1.7% of 80% of the net revenue realized under this Act
10for the second preceding month. Beginning April 1, 2000, this
11transfer is no longer required and shall not be made.
12 Net revenue realized for a month shall be the revenue
13collected by the State pursuant to this Act, less the amount
14paid out during that month as refunds to taxpayers for
15overpayment of liability.
16 For greater simplicity of administration, manufacturers,
17importers and wholesalers whose products are sold at retail in
18Illinois by numerous retailers, and who wish to do so, may
19assume the responsibility for accounting and paying to the
20Department all tax accruing under this Act with respect to such
21sales, if the retailers who are affected do not make written
22objection to the Department to this arrangement.
23(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
2498-496, eff. 1-1-14; 98-756, eff. 7-16-14; 98-1098, eff.
258-26-14; 99-352, eff. 8-12-15; 99-858, eff. 8-19-16; 99-933,
26eff. 1-27-17; revised 2-3-17.)

SB2026- 34 -LRB100 08814 HLH 18955 b
1 Section 10. The Service Use Tax Act is amended by changing
2Sections 3-5.5, 3-10, and 9 as follows:
3 (35 ILCS 110/3-5.5)
4 Sec. 3-5.5. Food and drugs sold by not-for-profit
5organizations; exemption. The Department shall not collect the
61% tax imposed on food for human consumption that is to be
7consumed off the premises where it is sold (other than
8alcoholic beverages, soft drinks, and food that has been
9prepared for immediate consumption) and prescription and
10nonprescription medicines, drugs, medical appliances, female
11and male condoms, and insulin, urine testing materials,
12syringes, and needles used by diabetics, for human use from any
13not-for-profit organization, that sells food in a food
14distribution program at a price below the retail cost of the
15food to purchasers who, as a condition of participation in the
16program, are required to perform community service, located in
17a county or municipality that notifies the Department, in
18writing, that the county or municipality does not want the tax
19to be collected from any of such organizations located in the
20county or municipality.
21(Source: P.A. 88-374.)
22 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)
23 Sec. 3-10. Rate of tax. Unless otherwise provided in this

SB2026- 35 -LRB100 08814 HLH 18955 b
1Section, the tax imposed by this Act is at the rate of 6.25% of
2the selling price of tangible personal property transferred as
3an incident to the sale of service, but, for the purpose of
4computing this tax, in no event shall the selling price be less
5than the cost price of the property to the serviceman.
6 Beginning on July 1, 2000 and through December 31, 2000,
7with respect to motor fuel, as defined in Section 1.1 of the
8Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
9the Use Tax Act, the tax is imposed at the rate of 1.25%.
10 With respect to gasohol, as defined in the Use Tax Act, the
11tax imposed by this Act applies to (i) 70% of the selling price
12of property transferred as an incident to the sale of service
13on or after January 1, 1990, and before July 1, 2003, (ii) 80%
14of the selling price of property transferred as an incident to
15the sale of service on or after July 1, 2003 and on or before
16December 31, 2018, and (iii) 100% of the selling price
17thereafter. If, at any time, however, the tax under this Act on
18sales of gasohol, as defined in the Use Tax Act, is imposed at
19the rate of 1.25%, then the tax imposed by this Act applies to
20100% of the proceeds of sales of gasohol made during that time.
21 With respect to majority blended ethanol fuel, as defined
22in the Use Tax Act, the tax imposed by this Act does not apply
23to the selling price of property transferred as an incident to
24the sale of service on or after July 1, 2003 and on or before
25December 31, 2018 but applies to 100% of the selling price
26thereafter.

SB2026- 36 -LRB100 08814 HLH 18955 b
1 With respect to biodiesel blends, as defined in the Use Tax
2Act, with no less than 1% and no more than 10% biodiesel, the
3tax imposed by this Act applies to (i) 80% of the selling price
4of property transferred as an incident to the sale of service
5on or after July 1, 2003 and on or before December 31, 2018 and
6(ii) 100% of the proceeds of the selling price thereafter. If,
7at any time, however, the tax under this Act on sales of
8biodiesel blends, as defined in the Use Tax Act, with no less
9than 1% and no more than 10% biodiesel is imposed at the rate
10of 1.25%, then the tax imposed by this Act applies to 100% of
11the proceeds of sales of biodiesel blends with no less than 1%
12and no more than 10% biodiesel made during that time.
13 With respect to 100% biodiesel, as defined in the Use Tax
14Act, and biodiesel blends, as defined in the Use Tax Act, with
15more than 10% but no more than 99% biodiesel, the tax imposed
16by this Act does not apply to the proceeds of the selling price
17of property transferred as an incident to the sale of service
18on or after July 1, 2003 and on or before December 31, 2018 but
19applies to 100% of the selling price thereafter.
20 At the election of any registered serviceman made for each
21fiscal year, sales of service in which the aggregate annual
22cost price of tangible personal property transferred as an
23incident to the sales of service is less than 35%, or 75% in
24the case of servicemen transferring prescription drugs or
25servicemen engaged in graphic arts production, of the aggregate
26annual total gross receipts from all sales of service, the tax

SB2026- 37 -LRB100 08814 HLH 18955 b
1imposed by this Act shall be based on the serviceman's cost
2price of the tangible personal property transferred as an
3incident to the sale of those services.
4 The tax shall be imposed at the rate of 1% on food prepared
5for immediate consumption and transferred incident to a sale of
6service subject to this Act or the Service Occupation Tax Act
7by an entity licensed under the Hospital Licensing Act, the
8Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD
9Act, the Specialized Mental Health Rehabilitation Act of 2013,
10or the Child Care Act of 1969. The tax shall also be imposed at
11the rate of 1% on food for human consumption that is to be
12consumed off the premises where it is sold (other than
13alcoholic beverages, soft drinks, and food that has been
14prepared for immediate consumption and is not otherwise
15included in this paragraph) and prescription and
16nonprescription medicines, drugs, medical appliances, female
17and male condoms, products classified as Class III medical
18devices by the United States Food and Drug Administration that
19are used for cancer treatment pursuant to a prescription, as
20well as any accessories and components related to those
21devices, modifications to a motor vehicle for the purpose of
22rendering it usable by a person with a disability, and insulin,
23urine testing materials, syringes, and needles used by
24diabetics, for human use. For the purposes of this Section,
25until September 1, 2009: the term "soft drinks" means any
26complete, finished, ready-to-use, non-alcoholic drink, whether

SB2026- 38 -LRB100 08814 HLH 18955 b
1carbonated or not, including but not limited to soda water,
2cola, fruit juice, vegetable juice, carbonated water, and all
3other preparations commonly known as soft drinks of whatever
4kind or description that are contained in any closed or sealed
5bottle, can, carton, or container, regardless of size; but
6"soft drinks" does not include coffee, tea, non-carbonated
7water, infant formula, milk or milk products as defined in the
8Grade A Pasteurized Milk and Milk Products Act, or drinks
9containing 50% or more natural fruit or vegetable juice.
10 Notwithstanding any other provisions of this Act,
11beginning September 1, 2009, "soft drinks" means non-alcoholic
12beverages that contain natural or artificial sweeteners. "Soft
13drinks" do not include beverages that contain milk or milk
14products, soy, rice or similar milk substitutes, or greater
15than 50% of vegetable or fruit juice by volume.
16 Until August 1, 2009, and notwithstanding any other
17provisions of this Act, "food for human consumption that is to
18be consumed off the premises where it is sold" includes all
19food sold through a vending machine, except soft drinks and
20food products that are dispensed hot from a vending machine,
21regardless of the location of the vending machine. Beginning
22August 1, 2009, and notwithstanding any other provisions of
23this Act, "food for human consumption that is to be consumed
24off the premises where it is sold" includes all food sold
25through a vending machine, except soft drinks, candy, and food
26products that are dispensed hot from a vending machine,

SB2026- 39 -LRB100 08814 HLH 18955 b
1regardless of the location of the vending machine.
2 Notwithstanding any other provisions of this Act,
3beginning September 1, 2009, "food for human consumption that
4is to be consumed off the premises where it is sold" does not
5include candy. For purposes of this Section, "candy" means a
6preparation of sugar, honey, or other natural or artificial
7sweeteners in combination with chocolate, fruits, nuts or other
8ingredients or flavorings in the form of bars, drops, or
9pieces. "Candy" does not include any preparation that contains
10flour or requires refrigeration.
11 Notwithstanding any other provisions of this Act,
12beginning September 1, 2009, "nonprescription medicines and
13drugs" does not include grooming and hygiene products. For
14purposes of this Section, "grooming and hygiene products"
15includes, but is not limited to, soaps and cleaning solutions,
16shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
17lotions and screens, unless those products are available by
18prescription only, regardless of whether the products meet the
19definition of "over-the-counter-drugs". For the purposes of
20this paragraph, "over-the-counter-drug" means a drug for human
21use that contains a label that identifies the product as a drug
22as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
23label includes:
24 (A) A "Drug Facts" panel; or
25 (B) A statement of the "active ingredient(s)" with a
26 list of those ingredients contained in the compound,

SB2026- 40 -LRB100 08814 HLH 18955 b
1 substance or preparation.
2 Beginning on January 1, 2014 (the effective date of Public
3Act 98-122), "prescription and nonprescription medicines and
4drugs" includes medical cannabis purchased from a registered
5dispensing organization under the Compassionate Use of Medical
6Cannabis Pilot Program Act.
7 If the property that is acquired from a serviceman is
8acquired outside Illinois and used outside Illinois before
9being brought to Illinois for use here and is taxable under
10this Act, the "selling price" on which the tax is computed
11shall be reduced by an amount that represents a reasonable
12allowance for depreciation for the period of prior out-of-state
13use.
14(Source: P.A. 98-104, eff. 7-22-13; 98-122, eff. 1-1-14;
1598-756, eff. 7-16-14; 99-143, eff. 7-27-15; 99-180, eff.
167-29-15; 99-642, eff. 7-28-16; 99-858, eff. 8-19-16.)
17 (35 ILCS 110/9) (from Ch. 120, par. 439.39)
18 Sec. 9. Each serviceman required or authorized to collect
19the tax herein imposed shall pay to the Department the amount
20of such tax (except as otherwise provided) at the time when he
21is required to file his return for the period during which such
22tax was collected, less a discount of 2.1% prior to January 1,
231990 and 1.75% on and after January 1, 1990, or $5 per calendar
24year, whichever is greater, which is allowed to reimburse the
25serviceman for expenses incurred in collecting the tax, keeping

SB2026- 41 -LRB100 08814 HLH 18955 b
1records, preparing and filing returns, remitting the tax and
2supplying data to the Department on request. The Department may
3disallow the discount for servicemen whose certificate of
4registration is revoked at the time the return is filed, but
5only if the Department's decision to revoke the certificate of
6registration has become final. A serviceman need not remit that
7part of any tax collected by him to the extent that he is
8required to pay and does pay the tax imposed by the Service
9Occupation Tax Act with respect to his sale of service
10involving the incidental transfer by him of the same property.
11 Except as provided hereinafter in this Section, on or
12before the twentieth day of each calendar month, such
13serviceman shall file a return for the preceding calendar month
14in accordance with reasonable Rules and Regulations to be
15promulgated by the Department. Such return shall be filed on a
16form prescribed by the Department and shall contain such
17information as the Department may reasonably require.
18 The Department may require returns to be filed on a
19quarterly basis. If so required, a return for each calendar
20quarter shall be filed on or before the twentieth day of the
21calendar month following the end of such calendar quarter. The
22taxpayer shall also file a return with the Department for each
23of the first two months of each calendar quarter, on or before
24the twentieth day of the following calendar month, stating:
25 1. The name of the seller;
26 2. The address of the principal place of business from

SB2026- 42 -LRB100 08814 HLH 18955 b
1 which he engages in business as a serviceman in this State;
2 3. The total amount of taxable receipts received by him
3 during the preceding calendar month, including receipts
4 from charge and time sales, but less all deductions allowed
5 by law;
6 4. The amount of credit provided in Section 2d of this
7 Act;
8 5. The amount of tax due;
9 5-5. The signature of the taxpayer; and
10 6. Such other reasonable information as the Department
11 may require.
12 If a taxpayer fails to sign a return within 30 days after
13the proper notice and demand for signature by the Department,
14the return shall be considered valid and any amount shown to be
15due on the return shall be deemed assessed.
16 Beginning October 1, 1993, a taxpayer who has an average
17monthly tax liability of $150,000 or more shall make all
18payments required by rules of the Department by electronic
19funds transfer. Beginning October 1, 1994, a taxpayer who has
20an average monthly tax liability of $100,000 or more shall make
21all payments required by rules of the Department by electronic
22funds transfer. Beginning October 1, 1995, a taxpayer who has
23an average monthly tax liability of $50,000 or more shall make
24all payments required by rules of the Department by electronic
25funds transfer. Beginning October 1, 2000, a taxpayer who has
26an annual tax liability of $200,000 or more shall make all

SB2026- 43 -LRB100 08814 HLH 18955 b
1payments required by rules of the Department by electronic
2funds transfer. The term "annual tax liability" shall be the
3sum of the taxpayer's liabilities under this Act, and under all
4other State and local occupation and use tax laws administered
5by the Department, for the immediately preceding calendar year.
6The term "average monthly tax liability" means the sum of the
7taxpayer's liabilities under this Act, and under all other
8State and local occupation and use tax laws administered by the
9Department, for the immediately preceding calendar year
10divided by 12. Beginning on October 1, 2002, a taxpayer who has
11a tax liability in the amount set forth in subsection (b) of
12Section 2505-210 of the Department of Revenue Law shall make
13all payments required by rules of the Department by electronic
14funds transfer.
15 Before August 1 of each year beginning in 1993, the
16Department shall notify all taxpayers required to make payments
17by electronic funds transfer. All taxpayers required to make
18payments by electronic funds transfer shall make those payments
19for a minimum of one year beginning on October 1.
20 Any taxpayer not required to make payments by electronic
21funds transfer may make payments by electronic funds transfer
22with the permission of the Department.
23 All taxpayers required to make payment by electronic funds
24transfer and any taxpayers authorized to voluntarily make
25payments by electronic funds transfer shall make those payments
26in the manner authorized by the Department.

SB2026- 44 -LRB100 08814 HLH 18955 b
1 The Department shall adopt such rules as are necessary to
2effectuate a program of electronic funds transfer and the
3requirements of this Section.
4 If the serviceman is otherwise required to file a monthly
5return and if the serviceman's average monthly tax liability to
6the Department does not exceed $200, the Department may
7authorize his returns to be filed on a quarter annual basis,
8with the return for January, February and March of a given year
9being due by April 20 of such year; with the return for April,
10May and June of a given year being due by July 20 of such year;
11with the return for July, August and September of a given year
12being due by October 20 of such year, and with the return for
13October, November and December of a given year being due by
14January 20 of the following year.
15 If the serviceman is otherwise required to file a monthly
16or quarterly return and if the serviceman's average monthly tax
17liability to the Department does not exceed $50, the Department
18may authorize his returns to be filed on an annual basis, with
19the return for a given year being due by January 20 of the
20following year.
21 Such quarter annual and annual returns, as to form and
22substance, shall be subject to the same requirements as monthly
23returns.
24 Notwithstanding any other provision in this Act concerning
25the time within which a serviceman may file his return, in the
26case of any serviceman who ceases to engage in a kind of

SB2026- 45 -LRB100 08814 HLH 18955 b
1business which makes him responsible for filing returns under
2this Act, such serviceman shall file a final return under this
3Act with the Department not more than 1 month after
4discontinuing such business.
5 Where a serviceman collects the tax with respect to the
6selling price of property which he sells and the purchaser
7thereafter returns such property and the serviceman refunds the
8selling price thereof to the purchaser, such serviceman shall
9also refund, to the purchaser, the tax so collected from the
10purchaser. When filing his return for the period in which he
11refunds such tax to the purchaser, the serviceman may deduct
12the amount of the tax so refunded by him to the purchaser from
13any other Service Use Tax, Service Occupation Tax, retailers'
14occupation tax or use tax which such serviceman may be required
15to pay or remit to the Department, as shown by such return,
16provided that the amount of the tax to be deducted shall
17previously have been remitted to the Department by such
18serviceman. If the serviceman shall not previously have
19remitted the amount of such tax to the Department, he shall be
20entitled to no deduction hereunder upon refunding such tax to
21the purchaser.
22 Any serviceman filing a return hereunder shall also include
23the total tax upon the selling price of tangible personal
24property purchased for use by him as an incident to a sale of
25service, and such serviceman shall remit the amount of such tax
26to the Department when filing such return.

SB2026- 46 -LRB100 08814 HLH 18955 b
1 If experience indicates such action to be practicable, the
2Department may prescribe and furnish a combination or joint
3return which will enable servicemen, who are required to file
4returns hereunder and also under the Service Occupation Tax
5Act, to furnish all the return information required by both
6Acts on the one form.
7 Where the serviceman has more than one business registered
8with the Department under separate registration hereunder,
9such serviceman shall not file each return that is due as a
10single return covering all such registered businesses, but
11shall file separate returns for each such registered business.
12 Beginning January 1, 1990, each month the Department shall
13pay into the State and Local Tax Reform Fund, a special fund in
14the State Treasury, the net revenue realized for the preceding
15month from the 1% tax on sales of food for human consumption
16which is to be consumed off the premises where it is sold
17(other than alcoholic beverages, soft drinks and food which has
18been prepared for immediate consumption) and prescription and
19nonprescription medicines, drugs, medical appliances, female
20and male condoms, products classified as Class III medical
21devices, by the United States Food and Drug Administration that
22are used for cancer treatment pursuant to a prescription, as
23well as any accessories and components related to those
24devices, and insulin, urine testing materials, syringes and
25needles used by diabetics.
26 Beginning January 1, 1990, each month the Department shall

SB2026- 47 -LRB100 08814 HLH 18955 b
1pay into the State and Local Sales Tax Reform Fund 20% of the
2net revenue realized for the preceding month from the 6.25%
3general rate on transfers of tangible personal property, other
4than tangible personal property which is purchased outside
5Illinois at retail from a retailer and which is titled or
6registered by an agency of this State's government.
7 Beginning August 1, 2000, each month the Department shall
8pay into the State and Local Sales Tax Reform Fund 100% of the
9net revenue realized for the preceding month from the 1.25%
10rate on the selling price of motor fuel and gasohol.
11 Beginning October 1, 2009, each month the Department shall
12pay into the Capital Projects Fund an amount that is equal to
13an amount estimated by the Department to represent 80% of the
14net revenue realized for the preceding month from the sale of
15candy, grooming and hygiene products, and soft drinks that had
16been taxed at a rate of 1% prior to September 1, 2009 but that
17are now taxed at 6.25%.
18 Beginning July 1, 2013, each month the Department shall pay
19into the Underground Storage Tank Fund from the proceeds
20collected under this Act, the Use Tax Act, the Service
21Occupation Tax Act, and the Retailers' Occupation Tax Act an
22amount equal to the average monthly deficit in the Underground
23Storage Tank Fund during the prior year, as certified annually
24by the Illinois Environmental Protection Agency, but the total
25payment into the Underground Storage Tank Fund under this Act,
26the Use Tax Act, the Service Occupation Tax Act, and the

SB2026- 48 -LRB100 08814 HLH 18955 b
1Retailers' Occupation Tax Act shall not exceed $18,000,000 in
2any State fiscal year. As used in this paragraph, the "average
3monthly deficit" shall be equal to the difference between the
4average monthly claims for payment by the fund and the average
5monthly revenues deposited into the fund, excluding payments
6made pursuant to this paragraph.
7 Beginning July 1, 2015, of the remainder of the moneys
8received by the Department under the Use Tax Act, this Act, the
9Service Occupation Tax Act, and the Retailers' Occupation Tax
10Act, each month the Department shall deposit $500,000 into the
11State Crime Laboratory Fund.
12 Of the remainder of the moneys received by the Department
13pursuant to this Act, (a) 1.75% thereof shall be paid into the
14Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
15and after July 1, 1989, 3.8% thereof shall be paid into the
16Build Illinois Fund; provided, however, that if in any fiscal
17year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
18may be, of the moneys received by the Department and required
19to be paid into the Build Illinois Fund pursuant to Section 3
20of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
21Act, Section 9 of the Service Use Tax Act, and Section 9 of the
22Service Occupation Tax Act, such Acts being hereinafter called
23the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
24may be, of moneys being hereinafter called the "Tax Act
25Amount", and (2) the amount transferred to the Build Illinois
26Fund from the State and Local Sales Tax Reform Fund shall be

SB2026- 49 -LRB100 08814 HLH 18955 b
1less than the Annual Specified Amount (as defined in Section 3
2of the Retailers' Occupation Tax Act), an amount equal to the
3difference shall be immediately paid into the Build Illinois
4Fund from other moneys received by the Department pursuant to
5the Tax Acts; and further provided, that if on the last
6business day of any month the sum of (1) the Tax Act Amount
7required to be deposited into the Build Illinois Bond Account
8in the Build Illinois Fund during such month and (2) the amount
9transferred during such month to the Build Illinois Fund from
10the State and Local Sales Tax Reform Fund shall have been less
11than 1/12 of the Annual Specified Amount, an amount equal to
12the difference shall be immediately paid into the Build
13Illinois Fund from other moneys received by the Department
14pursuant to the Tax Acts; and, further provided, that in no
15event shall the payments required under the preceding proviso
16result in aggregate payments into the Build Illinois Fund
17pursuant to this clause (b) for any fiscal year in excess of
18the greater of (i) the Tax Act Amount or (ii) the Annual
19Specified Amount for such fiscal year; and, further provided,
20that the amounts payable into the Build Illinois Fund under
21this clause (b) shall be payable only until such time as the
22aggregate amount on deposit under each trust indenture securing
23Bonds issued and outstanding pursuant to the Build Illinois
24Bond Act is sufficient, taking into account any future
25investment income, to fully provide, in accordance with such
26indenture, for the defeasance of or the payment of the

SB2026- 50 -LRB100 08814 HLH 18955 b
1principal of, premium, if any, and interest on the Bonds
2secured by such indenture and on any Bonds expected to be
3issued thereafter and all fees and costs payable with respect
4thereto, all as certified by the Director of the Bureau of the
5Budget (now Governor's Office of Management and Budget). If on
6the last business day of any month in which Bonds are
7outstanding pursuant to the Build Illinois Bond Act, the
8aggregate of the moneys deposited in the Build Illinois Bond
9Account in the Build Illinois Fund in such month shall be less
10than the amount required to be transferred in such month from
11the Build Illinois Bond Account to the Build Illinois Bond
12Retirement and Interest Fund pursuant to Section 13 of the
13Build Illinois Bond Act, an amount equal to such deficiency
14shall be immediately paid from other moneys received by the
15Department pursuant to the Tax Acts to the Build Illinois Fund;
16provided, however, that any amounts paid to the Build Illinois
17Fund in any fiscal year pursuant to this sentence shall be
18deemed to constitute payments pursuant to clause (b) of the
19preceding sentence and shall reduce the amount otherwise
20payable for such fiscal year pursuant to clause (b) of the
21preceding sentence. The moneys received by the Department
22pursuant to this Act and required to be deposited into the
23Build Illinois Fund are subject to the pledge, claim and charge
24set forth in Section 12 of the Build Illinois Bond Act.
25 Subject to payment of amounts into the Build Illinois Fund
26as provided in the preceding paragraph or in any amendment

SB2026- 51 -LRB100 08814 HLH 18955 b
1thereto hereafter enacted, the following specified monthly
2installment of the amount requested in the certificate of the
3Chairman of the Metropolitan Pier and Exposition Authority
4provided under Section 8.25f of the State Finance Act, but not
5in excess of the sums designated as "Total Deposit", shall be
6deposited in the aggregate from collections under Section 9 of
7the Use Tax Act, Section 9 of the Service Use Tax Act, Section
89 of the Service Occupation Tax Act, and Section 3 of the
9Retailers' Occupation Tax Act into the McCormick Place
10Expansion Project Fund in the specified fiscal years.
11Fiscal YearTotal Deposit
121993 $0
131994 53,000,000
141995 58,000,000
151996 61,000,000
161997 64,000,000
171998 68,000,000
181999 71,000,000
192000 75,000,000
202001 80,000,000
212002 93,000,000
222003 99,000,000
232004103,000,000
242005108,000,000
252006113,000,000

SB2026- 52 -LRB100 08814 HLH 18955 b
12007119,000,000
22008126,000,000
32009132,000,000
42010139,000,000
52011146,000,000
62012153,000,000
72013161,000,000
82014170,000,000
92015179,000,000
102016189,000,000
112017199,000,000
122018210,000,000
132019221,000,000
142020233,000,000
152021246,000,000
162022260,000,000
172023275,000,000
182024 275,000,000
192025 275,000,000
202026 279,000,000
212027 292,000,000
222028 307,000,000
232029 322,000,000
242030 338,000,000
252031 350,000,000
262032 350,000,000

SB2026- 53 -LRB100 08814 HLH 18955 b
1and
2each fiscal year
3thereafter that bonds
4are outstanding under
5Section 13.2 of the
6Metropolitan Pier and
7Exposition Authority Act,
8but not after fiscal year 2060.
9 Beginning July 20, 1993 and in each month of each fiscal
10year thereafter, one-eighth of the amount requested in the
11certificate of the Chairman of the Metropolitan Pier and
12Exposition Authority for that fiscal year, less the amount
13deposited into the McCormick Place Expansion Project Fund by
14the State Treasurer in the respective month under subsection
15(g) of Section 13 of the Metropolitan Pier and Exposition
16Authority Act, plus cumulative deficiencies in the deposits
17required under this Section for previous months and years,
18shall be deposited into the McCormick Place Expansion Project
19Fund, until the full amount requested for the fiscal year, but
20not in excess of the amount specified above as "Total Deposit",
21has been deposited.
22 Subject to payment of amounts into the Build Illinois Fund
23and the McCormick Place Expansion Project Fund pursuant to the
24preceding paragraphs or in any amendments thereto hereafter
25enacted, beginning July 1, 1993 and ending on September 30,
262013, the Department shall each month pay into the Illinois Tax

SB2026- 54 -LRB100 08814 HLH 18955 b
1Increment Fund 0.27% of 80% of the net revenue realized for the
2preceding month from the 6.25% general rate on the selling
3price of tangible personal property.
4 Subject to payment of amounts into the Build Illinois Fund
5and the McCormick Place Expansion Project Fund pursuant to the
6preceding paragraphs or in any amendments thereto hereafter
7enacted, beginning with the receipt of the first report of
8taxes paid by an eligible business and continuing for a 25-year
9period, the Department shall each month pay into the Energy
10Infrastructure Fund 80% of the net revenue realized from the
116.25% general rate on the selling price of Illinois-mined coal
12that was sold to an eligible business. For purposes of this
13paragraph, the term "eligible business" means a new electric
14generating facility certified pursuant to Section 605-332 of
15the Department of Commerce and Economic Opportunity Law of the
16Civil Administrative Code of Illinois.
17 Subject to payment of amounts into the Build Illinois Fund,
18the McCormick Place Expansion Project Fund, the Illinois Tax
19Increment Fund, and the Energy Infrastructure Fund pursuant to
20the preceding paragraphs or in any amendments to this Section
21hereafter enacted, beginning on the first day of the first
22calendar month to occur on or after the effective date of this
23amendatory Act of the 98th General Assembly, each month, from
24the collections made under Section 9 of the Use Tax Act,
25Section 9 of the Service Use Tax Act, Section 9 of the Service
26Occupation Tax Act, and Section 3 of the Retailers' Occupation

SB2026- 55 -LRB100 08814 HLH 18955 b
1Tax Act, the Department shall pay into the Tax Compliance and
2Administration Fund, to be used, subject to appropriation, to
3fund additional auditors and compliance personnel at the
4Department of Revenue, an amount equal to 1/12 of 5% of 80% of
5the cash receipts collected during the preceding fiscal year by
6the Audit Bureau of the Department under the Use Tax Act, the
7Service Use Tax Act, the Service Occupation Tax Act, the
8Retailers' Occupation Tax Act, and associated local occupation
9and use taxes administered by the Department.
10 Of the remainder of the moneys received by the Department
11pursuant to this Act, 75% thereof shall be paid into the
12General Revenue Fund of the State Treasury and 25% shall be
13reserved in a special account and used only for the transfer to
14the Common School Fund as part of the monthly transfer from the
15General Revenue Fund in accordance with Section 8a of the State
16Finance Act.
17 As soon as possible after the first day of each month, upon
18certification of the Department of Revenue, the Comptroller
19shall order transferred and the Treasurer shall transfer from
20the General Revenue Fund to the Motor Fuel Tax Fund an amount
21equal to 1.7% of 80% of the net revenue realized under this Act
22for the second preceding month. Beginning April 1, 2000, this
23transfer is no longer required and shall not be made.
24 Net revenue realized for a month shall be the revenue
25collected by the State pursuant to this Act, less the amount
26paid out during that month as refunds to taxpayers for

SB2026- 56 -LRB100 08814 HLH 18955 b
1overpayment of liability.
2(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
398-298, eff. 8-9-13; 98-496, eff. 1-1-14; 98-756, eff. 7-16-14;
498-1098, eff. 8-26-14; 99-352, eff. 8-12-15; 99-858, eff.
58-19-16.)
6 Section 15. The Service Occupation Tax Act is amended by
7changing Sections 3-5.5, 3-10, and 9 as follows:
8 (35 ILCS 115/3-5.5)
9 Sec. 3-5.5. Food and drugs sold by not-for-profit
10organizations; exemption. The Department shall not collect the
111% tax imposed on food for human consumption that is to be
12consumed off the premises where it is sold (other than
13alcoholic beverages, soft drinks, and food that has been
14prepared for immediate consumption) and prescription and
15nonprescription medicines, drugs, medical appliances, female
16and male condoms, and insulin, urine testing materials,
17syringes, and needles used by diabetics, for human use from any
18not-for-profit organization, that sells food in a food
19distribution program at a price below the retail cost of the
20food to purchasers who, as a condition of participation in the
21program, are required to perform community service, located in
22a county or municipality that notifies the Department, in
23writing, that the county or municipality does not want the tax
24to be collected from any of such organizations located in the

SB2026- 57 -LRB100 08814 HLH 18955 b
1county or municipality.
2(Source: P.A. 88-374.)
3 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)
4 Sec. 3-10. Rate of tax. Unless otherwise provided in this
5Section, the tax imposed by this Act is at the rate of 6.25% of
6the "selling price", as defined in Section 2 of the Service Use
7Tax Act, of the tangible personal property. For the purpose of
8computing this tax, in no event shall the "selling price" be
9less than the cost price to the serviceman of the tangible
10personal property transferred. The selling price of each item
11of tangible personal property transferred as an incident of a
12sale of service may be shown as a distinct and separate item on
13the serviceman's billing to the service customer. If the
14selling price is not so shown, the selling price of the
15tangible personal property is deemed to be 50% of the
16serviceman's entire billing to the service customer. When,
17however, a serviceman contracts to design, develop, and produce
18special order machinery or equipment, the tax imposed by this
19Act shall be based on the serviceman's cost price of the
20tangible personal property transferred incident to the
21completion of the contract.
22 Beginning on July 1, 2000 and through December 31, 2000,
23with respect to motor fuel, as defined in Section 1.1 of the
24Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
25the Use Tax Act, the tax is imposed at the rate of 1.25%.

SB2026- 58 -LRB100 08814 HLH 18955 b
1 With respect to gasohol, as defined in the Use Tax Act, the
2tax imposed by this Act shall apply to (i) 70% of the cost
3price of property transferred as an incident to the sale of
4service on or after January 1, 1990, and before July 1, 2003,
5(ii) 80% of the selling price of property transferred as an
6incident to the sale of service on or after July 1, 2003 and on
7or before December 31, 2018, and (iii) 100% of the cost price
8thereafter. If, at any time, however, the tax under this Act on
9sales of gasohol, as defined in the Use Tax Act, is imposed at
10the rate of 1.25%, then the tax imposed by this Act applies to
11100% of the proceeds of sales of gasohol made during that time.
12 With respect to majority blended ethanol fuel, as defined
13in the Use Tax Act, the tax imposed by this Act does not apply
14to the selling price of property transferred as an incident to
15the sale of service on or after July 1, 2003 and on or before
16December 31, 2018 but applies to 100% of the selling price
17thereafter.
18 With respect to biodiesel blends, as defined in the Use Tax
19Act, with no less than 1% and no more than 10% biodiesel, the
20tax imposed by this Act applies to (i) 80% of the selling price
21of property transferred as an incident to the sale of service
22on or after July 1, 2003 and on or before December 31, 2018 and
23(ii) 100% of the proceeds of the selling price thereafter. If,
24at any time, however, the tax under this Act on sales of
25biodiesel blends, as defined in the Use Tax Act, with no less
26than 1% and no more than 10% biodiesel is imposed at the rate

SB2026- 59 -LRB100 08814 HLH 18955 b
1of 1.25%, then the tax imposed by this Act applies to 100% of
2the proceeds of sales of biodiesel blends with no less than 1%
3and no more than 10% biodiesel made during that time.
4 With respect to 100% biodiesel, as defined in the Use Tax
5Act, and biodiesel blends, as defined in the Use Tax Act, with
6more than 10% but no more than 99% biodiesel material, the tax
7imposed by this Act does not apply to the proceeds of the
8selling price of property transferred as an incident to the
9sale of service on or after July 1, 2003 and on or before
10December 31, 2018 but applies to 100% of the selling price
11thereafter.
12 At the election of any registered serviceman made for each
13fiscal year, sales of service in which the aggregate annual
14cost price of tangible personal property transferred as an
15incident to the sales of service is less than 35%, or 75% in
16the case of servicemen transferring prescription drugs or
17servicemen engaged in graphic arts production, of the aggregate
18annual total gross receipts from all sales of service, the tax
19imposed by this Act shall be based on the serviceman's cost
20price of the tangible personal property transferred incident to
21the sale of those services.
22 The tax shall be imposed at the rate of 1% on food prepared
23for immediate consumption and transferred incident to a sale of
24service subject to this Act or the Service Occupation Tax Act
25by an entity licensed under the Hospital Licensing Act, the
26Nursing Home Care Act, the ID/DD Community Care Act, the MC/DD

SB2026- 60 -LRB100 08814 HLH 18955 b
1Act, the Specialized Mental Health Rehabilitation Act of 2013,
2or the Child Care Act of 1969. The tax shall also be imposed at
3the rate of 1% on food for human consumption that is to be
4consumed off the premises where it is sold (other than
5alcoholic beverages, soft drinks, and food that has been
6prepared for immediate consumption and is not otherwise
7included in this paragraph) and prescription and
8nonprescription medicines, drugs, medical appliances, female
9and male condoms, products classified as Class III medical
10devices by the United States Food and Drug Administration that
11are used for cancer treatment pursuant to a prescription, as
12well as any accessories and components related to those
13devices, modifications to a motor vehicle for the purpose of
14rendering it usable by a person with a disability, and insulin,
15urine testing materials, syringes, and needles used by
16diabetics, for human use. For the purposes of this Section,
17until September 1, 2009: the term "soft drinks" means any
18complete, finished, ready-to-use, non-alcoholic drink, whether
19carbonated or not, including but not limited to soda water,
20cola, fruit juice, vegetable juice, carbonated water, and all
21other preparations commonly known as soft drinks of whatever
22kind or description that are contained in any closed or sealed
23can, carton, or container, regardless of size; but "soft
24drinks" does not include coffee, tea, non-carbonated water,
25infant formula, milk or milk products as defined in the Grade A
26Pasteurized Milk and Milk Products Act, or drinks containing

SB2026- 61 -LRB100 08814 HLH 18955 b
150% or more natural fruit or vegetable juice.
2 Notwithstanding any other provisions of this Act,
3beginning September 1, 2009, "soft drinks" means non-alcoholic
4beverages that contain natural or artificial sweeteners. "Soft
5drinks" do not include beverages that contain milk or milk
6products, soy, rice or similar milk substitutes, or greater
7than 50% of vegetable or fruit juice by volume.
8 Until August 1, 2009, and notwithstanding any other
9provisions of this Act, "food for human consumption that is to
10be consumed off the premises where it is sold" includes all
11food sold through a vending machine, except soft drinks and
12food products that are dispensed hot from a vending machine,
13regardless of the location of the vending machine. Beginning
14August 1, 2009, and notwithstanding any other provisions of
15this Act, "food for human consumption that is to be consumed
16off the premises where it is sold" includes all food sold
17through a vending machine, except soft drinks, candy, and food
18products that are dispensed hot from a vending machine,
19regardless of the location of the vending machine.
20 Notwithstanding any other provisions of this Act,
21beginning September 1, 2009, "food for human consumption that
22is to be consumed off the premises where it is sold" does not
23include candy. For purposes of this Section, "candy" means a
24preparation of sugar, honey, or other natural or artificial
25sweeteners in combination with chocolate, fruits, nuts or other
26ingredients or flavorings in the form of bars, drops, or

SB2026- 62 -LRB100 08814 HLH 18955 b
1pieces. "Candy" does not include any preparation that contains
2flour or requires refrigeration.
3 Notwithstanding any other provisions of this Act,
4beginning September 1, 2009, "nonprescription medicines and
5drugs" does not include grooming and hygiene products. For
6purposes of this Section, "grooming and hygiene products"
7includes, but is not limited to, soaps and cleaning solutions,
8shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
9lotions and screens, unless those products are available by
10prescription only, regardless of whether the products meet the
11definition of "over-the-counter-drugs". For the purposes of
12this paragraph, "over-the-counter-drug" means a drug for human
13use that contains a label that identifies the product as a drug
14as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
15label includes:
16 (A) A "Drug Facts" panel; or
17 (B) A statement of the "active ingredient(s)" with a
18 list of those ingredients contained in the compound,
19 substance or preparation.
20 Beginning on January 1, 2014 (the effective date of Public
21Act 98-122), "prescription and nonprescription medicines and
22drugs" includes medical cannabis purchased from a registered
23dispensing organization under the Compassionate Use of Medical
24Cannabis Pilot Program Act.
25(Source: P.A. 98-104, eff. 7-22-13; 98-122, eff. 1-1-14;
2698-756, eff. 7-16-14; 99-143, eff. 7-27-15; 99-180, eff.

SB2026- 63 -LRB100 08814 HLH 18955 b
17-29-15; 99-642, eff. 7-28-16; 99-858, eff. 8-19-16.)
2 (35 ILCS 115/9) (from Ch. 120, par. 439.109)
3 Sec. 9. Each serviceman required or authorized to collect
4the tax herein imposed shall pay to the Department the amount
5of such tax at the time when he is required to file his return
6for the period during which such tax was collectible, less a
7discount of 2.1% prior to January 1, 1990, and 1.75% on and
8after January 1, 1990, or $5 per calendar year, whichever is
9greater, which is allowed to reimburse the serviceman for
10expenses incurred in collecting the tax, keeping records,
11preparing and filing returns, remitting the tax and supplying
12data to the Department on request. The Department may disallow
13the discount for servicemen whose certificate of registration
14is revoked at the time the return is filed, but only if the
15Department's decision to revoke the certificate of
16registration has become final.
17 Where such tangible personal property is sold under a
18conditional sales contract, or under any other form of sale
19wherein the payment of the principal sum, or a part thereof, is
20extended beyond the close of the period for which the return is
21filed, the serviceman, in collecting the tax may collect, for
22each tax return period, only the tax applicable to the part of
23the selling price actually received during such tax return
24period.
25 Except as provided hereinafter in this Section, on or

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1before the twentieth day of each calendar month, such
2serviceman shall file a return for the preceding calendar month
3in accordance with reasonable rules and regulations to be
4promulgated by the Department of Revenue. Such return shall be
5filed on a form prescribed by the Department and shall contain
6such information as the Department may reasonably require.
7 The Department may require returns to be filed on a
8quarterly basis. If so required, a return for each calendar
9quarter shall be filed on or before the twentieth day of the
10calendar month following the end of such calendar quarter. The
11taxpayer shall also file a return with the Department for each
12of the first two months of each calendar quarter, on or before
13the twentieth day of the following calendar month, stating:
14 1. The name of the seller;
15 2. The address of the principal place of business from
16 which he engages in business as a serviceman in this State;
17 3. The total amount of taxable receipts received by him
18 during the preceding calendar month, including receipts
19 from charge and time sales, but less all deductions allowed
20 by law;
21 4. The amount of credit provided in Section 2d of this
22 Act;
23 5. The amount of tax due;
24 5-5. The signature of the taxpayer; and
25 6. Such other reasonable information as the Department
26 may require.

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1 If a taxpayer fails to sign a return within 30 days after
2the proper notice and demand for signature by the Department,
3the return shall be considered valid and any amount shown to be
4due on the return shall be deemed assessed.
5 Prior to October 1, 2003, and on and after September 1,
62004 a serviceman may accept a Manufacturer's Purchase Credit
7certification from a purchaser in satisfaction of Service Use
8Tax as provided in Section 3-70 of the Service Use Tax Act if
9the purchaser provides the appropriate documentation as
10required by Section 3-70 of the Service Use Tax Act. A
11Manufacturer's Purchase Credit certification, accepted prior
12to October 1, 2003 or on or after September 1, 2004 by a
13serviceman as provided in Section 3-70 of the Service Use Tax
14Act, may be used by that serviceman to satisfy Service
15Occupation Tax liability in the amount claimed in the
16certification, not to exceed 6.25% of the receipts subject to
17tax from a qualifying purchase. A Manufacturer's Purchase
18Credit reported on any original or amended return filed under
19this Act after October 20, 2003 for reporting periods prior to
20September 1, 2004 shall be disallowed. Manufacturer's Purchase
21Credit reported on annual returns due on or after January 1,
222005 will be disallowed for periods prior to September 1, 2004.
23No Manufacturer's Purchase Credit may be used after September
2430, 2003 through August 31, 2004 to satisfy any tax liability
25imposed under this Act, including any audit liability.
26 If the serviceman's average monthly tax liability to the

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1Department does not exceed $200, the Department may authorize
2his returns to be filed on a quarter annual basis, with the
3return for January, February and March of a given year being
4due by April 20 of such year; with the return for April, May
5and June of a given year being due by July 20 of such year; with
6the return for July, August and September of a given year being
7due by October 20 of such year, and with the return for
8October, November and December of a given year being due by
9January 20 of the following year.
10 If the serviceman's average monthly tax liability to the
11Department does not exceed $50, the Department may authorize
12his returns to be filed on an annual basis, with the return for
13a given year being due by January 20 of the following year.
14 Such quarter annual and annual returns, as to form and
15substance, shall be subject to the same requirements as monthly
16returns.
17 Notwithstanding any other provision in this Act concerning
18the time within which a serviceman may file his return, in the
19case of any serviceman who ceases to engage in a kind of
20business which makes him responsible for filing returns under
21this Act, such serviceman shall file a final return under this
22Act with the Department not more than 1 month after
23discontinuing such business.
24 Beginning October 1, 1993, a taxpayer who has an average
25monthly tax liability of $150,000 or more shall make all
26payments required by rules of the Department by electronic

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1funds transfer. Beginning October 1, 1994, a taxpayer who has
2an average monthly tax liability of $100,000 or more shall make
3all payments required by rules of the Department by electronic
4funds transfer. Beginning October 1, 1995, a taxpayer who has
5an average monthly tax liability of $50,000 or more shall make
6all payments required by rules of the Department by electronic
7funds transfer. Beginning October 1, 2000, a taxpayer who has
8an annual tax liability of $200,000 or more shall make all
9payments required by rules of the Department by electronic
10funds transfer. The term "annual tax liability" shall be the
11sum of the taxpayer's liabilities under this Act, and under all
12other State and local occupation and use tax laws administered
13by the Department, for the immediately preceding calendar year.
14The term "average monthly tax liability" means the sum of the
15taxpayer's liabilities under this Act, and under all other
16State and local occupation and use tax laws administered by the
17Department, for the immediately preceding calendar year
18divided by 12. Beginning on October 1, 2002, a taxpayer who has
19a tax liability in the amount set forth in subsection (b) of
20Section 2505-210 of the Department of Revenue Law shall make
21all payments required by rules of the Department by electronic
22funds transfer.
23 Before August 1 of each year beginning in 1993, the
24Department shall notify all taxpayers required to make payments
25by electronic funds transfer. All taxpayers required to make
26payments by electronic funds transfer shall make those payments

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1for a minimum of one year beginning on October 1.
2 Any taxpayer not required to make payments by electronic
3funds transfer may make payments by electronic funds transfer
4with the permission of the Department.
5 All taxpayers required to make payment by electronic funds
6transfer and any taxpayers authorized to voluntarily make
7payments by electronic funds transfer shall make those payments
8in the manner authorized by the Department.
9 The Department shall adopt such rules as are necessary to
10effectuate a program of electronic funds transfer and the
11requirements of this Section.
12 Where a serviceman collects the tax with respect to the
13selling price of tangible personal property which he sells and
14the purchaser thereafter returns such tangible personal
15property and the serviceman refunds the selling price thereof
16to the purchaser, such serviceman shall also refund, to the
17purchaser, the tax so collected from the purchaser. When filing
18his return for the period in which he refunds such tax to the
19purchaser, the serviceman may deduct the amount of the tax so
20refunded by him to the purchaser from any other Service
21Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
22Use Tax which such serviceman may be required to pay or remit
23to the Department, as shown by such return, provided that the
24amount of the tax to be deducted shall previously have been
25remitted to the Department by such serviceman. If the
26serviceman shall not previously have remitted the amount of

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1such tax to the Department, he shall be entitled to no
2deduction hereunder upon refunding such tax to the purchaser.
3 If experience indicates such action to be practicable, the
4Department may prescribe and furnish a combination or joint
5return which will enable servicemen, who are required to file
6returns hereunder and also under the Retailers' Occupation Tax
7Act, the Use Tax Act or the Service Use Tax Act, to furnish all
8the return information required by all said Acts on the one
9form.
10 Where the serviceman has more than one business registered
11with the Department under separate registrations hereunder,
12such serviceman shall file separate returns for each registered
13business.
14 Beginning January 1, 1990, each month the Department shall
15pay into the Local Government Tax Fund the revenue realized for
16the preceding month from the 1% tax on sales of food for human
17consumption which is to be consumed off the premises where it
18is sold (other than alcoholic beverages, soft drinks and food
19which has been prepared for immediate consumption) and
20prescription and nonprescription medicines, drugs, medical
21appliances, female and male condoms, products classified as
22Class III medical devices by the United States Food and Drug
23Administration that are used for cancer treatment pursuant to a
24prescription, as well as any accessories and components related
25to those devices, and insulin, urine testing materials,
26syringes and needles used by diabetics.

SB2026- 70 -LRB100 08814 HLH 18955 b
1 Beginning January 1, 1990, each month the Department shall
2pay into the County and Mass Transit District Fund 4% of the
3revenue realized for the preceding month from the 6.25% general
4rate.
5 Beginning August 1, 2000, each month the Department shall
6pay into the County and Mass Transit District Fund 20% of the
7net revenue realized for the preceding month from the 1.25%
8rate on the selling price of motor fuel and gasohol.
9 Beginning January 1, 1990, each month the Department shall
10pay into the Local Government Tax Fund 16% of the revenue
11realized for the preceding month from the 6.25% general rate on
12transfers of tangible personal property.
13 Beginning August 1, 2000, each month the Department shall
14pay into the Local Government Tax Fund 80% of the net revenue
15realized for the preceding month from the 1.25% rate on the
16selling price of motor fuel and gasohol.
17 Beginning October 1, 2009, each month the Department shall
18pay into the Capital Projects Fund an amount that is equal to
19an amount estimated by the Department to represent 80% of the
20net revenue realized for the preceding month from the sale of
21candy, grooming and hygiene products, and soft drinks that had
22been taxed at a rate of 1% prior to September 1, 2009 but that
23are now taxed at 6.25%.
24 Beginning July 1, 2013, each month the Department shall pay
25into the Underground Storage Tank Fund from the proceeds
26collected under this Act, the Use Tax Act, the Service Use Tax

SB2026- 71 -LRB100 08814 HLH 18955 b
1Act, and the Retailers' Occupation Tax Act an amount equal to
2the average monthly deficit in the Underground Storage Tank
3Fund during the prior year, as certified annually by the
4Illinois Environmental Protection Agency, but the total
5payment into the Underground Storage Tank Fund under this Act,
6the Use Tax Act, the Service Use Tax Act, and the Retailers'
7Occupation Tax Act shall not exceed $18,000,000 in any State
8fiscal year. As used in this paragraph, the "average monthly
9deficit" shall be equal to the difference between the average
10monthly claims for payment by the fund and the average monthly
11revenues deposited into the fund, excluding payments made
12pursuant to this paragraph.
13 Beginning July 1, 2015, of the remainder of the moneys
14received by the Department under the Use Tax Act, the Service
15Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
16each month the Department shall deposit $500,000 into the State
17Crime Laboratory Fund.
18 Of the remainder of the moneys received by the Department
19pursuant to this Act, (a) 1.75% thereof shall be paid into the
20Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
21and after July 1, 1989, 3.8% thereof shall be paid into the
22Build Illinois Fund; provided, however, that if in any fiscal
23year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
24may be, of the moneys received by the Department and required
25to be paid into the Build Illinois Fund pursuant to Section 3
26of the Retailers' Occupation Tax Act, Section 9 of the Use Tax

SB2026- 72 -LRB100 08814 HLH 18955 b
1Act, Section 9 of the Service Use Tax Act, and Section 9 of the
2Service Occupation Tax Act, such Acts being hereinafter called
3the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
4may be, of moneys being hereinafter called the "Tax Act
5Amount", and (2) the amount transferred to the Build Illinois
6Fund from the State and Local Sales Tax Reform Fund shall be
7less than the Annual Specified Amount (as defined in Section 3
8of the Retailers' Occupation Tax Act), an amount equal to the
9difference shall be immediately paid into the Build Illinois
10Fund from other moneys received by the Department pursuant to
11the Tax Acts; and further provided, that if on the last
12business day of any month the sum of (1) the Tax Act Amount
13required to be deposited into the Build Illinois Account in the
14Build Illinois Fund during such month and (2) the amount
15transferred during such month to the Build Illinois Fund from
16the State and Local Sales Tax Reform Fund shall have been less
17than 1/12 of the Annual Specified Amount, an amount equal to
18the difference shall be immediately paid into the Build
19Illinois Fund from other moneys received by the Department
20pursuant to the Tax Acts; and, further provided, that in no
21event shall the payments required under the preceding proviso
22result in aggregate payments into the Build Illinois Fund
23pursuant to this clause (b) for any fiscal year in excess of
24the greater of (i) the Tax Act Amount or (ii) the Annual
25Specified Amount for such fiscal year; and, further provided,
26that the amounts payable into the Build Illinois Fund under

SB2026- 73 -LRB100 08814 HLH 18955 b
1this clause (b) shall be payable only until such time as the
2aggregate amount on deposit under each trust indenture securing
3Bonds issued and outstanding pursuant to the Build Illinois
4Bond Act is sufficient, taking into account any future
5investment income, to fully provide, in accordance with such
6indenture, for the defeasance of or the payment of the
7principal of, premium, if any, and interest on the Bonds
8secured by such indenture and on any Bonds expected to be
9issued thereafter and all fees and costs payable with respect
10thereto, all as certified by the Director of the Bureau of the
11Budget (now Governor's Office of Management and Budget). If on
12the last business day of any month in which Bonds are
13outstanding pursuant to the Build Illinois Bond Act, the
14aggregate of the moneys deposited in the Build Illinois Bond
15Account in the Build Illinois Fund in such month shall be less
16than the amount required to be transferred in such month from
17the Build Illinois Bond Account to the Build Illinois Bond
18Retirement and Interest Fund pursuant to Section 13 of the
19Build Illinois Bond Act, an amount equal to such deficiency
20shall be immediately paid from other moneys received by the
21Department pursuant to the Tax Acts to the Build Illinois Fund;
22provided, however, that any amounts paid to the Build Illinois
23Fund in any fiscal year pursuant to this sentence shall be
24deemed to constitute payments pursuant to clause (b) of the
25preceding sentence and shall reduce the amount otherwise
26payable for such fiscal year pursuant to clause (b) of the

SB2026- 74 -LRB100 08814 HLH 18955 b
1preceding sentence. The moneys received by the Department
2pursuant to this Act and required to be deposited into the
3Build Illinois Fund are subject to the pledge, claim and charge
4set forth in Section 12 of the Build Illinois Bond Act.
5 Subject to payment of amounts into the Build Illinois Fund
6as provided in the preceding paragraph or in any amendment
7thereto hereafter enacted, the following specified monthly
8installment of the amount requested in the certificate of the
9Chairman of the Metropolitan Pier and Exposition Authority
10provided under Section 8.25f of the State Finance Act, but not
11in excess of the sums designated as "Total Deposit", shall be
12deposited in the aggregate from collections under Section 9 of
13the Use Tax Act, Section 9 of the Service Use Tax Act, Section
149 of the Service Occupation Tax Act, and Section 3 of the
15Retailers' Occupation Tax Act into the McCormick Place
16Expansion Project Fund in the specified fiscal years.
17Fiscal YearTotal Deposit
181993 $0
191994 53,000,000
201995 58,000,000
211996 61,000,000
221997 64,000,000
231998 68,000,000
241999 71,000,000
252000 75,000,000

SB2026- 75 -LRB100 08814 HLH 18955 b
12001 80,000,000
22002 93,000,000
32003 99,000,000
42004103,000,000
52005108,000,000
62006113,000,000
72007119,000,000
82008126,000,000
92009132,000,000
102010139,000,000
112011146,000,000
122012153,000,000
132013161,000,000
142014170,000,000
152015179,000,000
162016189,000,000
172017199,000,000
182018210,000,000
192019221,000,000
202020233,000,000
212021246,000,000
222022260,000,000
232023275,000,000
242024 275,000,000
252025 275,000,000
262026 279,000,000

SB2026- 76 -LRB100 08814 HLH 18955 b
12027 292,000,000
22028 307,000,000
32029 322,000,000
42030 338,000,000
52031 350,000,000
62032 350,000,000
7and
8each fiscal year
9thereafter that bonds
10are outstanding under
11Section 13.2 of the
12Metropolitan Pier and
13Exposition Authority Act,
14but not after fiscal year 2060.
15 Beginning July 20, 1993 and in each month of each fiscal
16year thereafter, one-eighth of the amount requested in the
17certificate of the Chairman of the Metropolitan Pier and
18Exposition Authority for that fiscal year, less the amount
19deposited into the McCormick Place Expansion Project Fund by
20the State Treasurer in the respective month under subsection
21(g) of Section 13 of the Metropolitan Pier and Exposition
22Authority Act, plus cumulative deficiencies in the deposits
23required under this Section for previous months and years,
24shall be deposited into the McCormick Place Expansion Project
25Fund, until the full amount requested for the fiscal year, but
26not in excess of the amount specified above as "Total Deposit",

SB2026- 77 -LRB100 08814 HLH 18955 b
1has been deposited.
2 Subject to payment of amounts into the Build Illinois Fund
3and the McCormick Place Expansion Project Fund pursuant to the
4preceding paragraphs or in any amendments thereto hereafter
5enacted, beginning July 1, 1993 and ending on September 30,
62013, the Department shall each month pay into the Illinois Tax
7Increment Fund 0.27% of 80% of the net revenue realized for the
8preceding month from the 6.25% general rate on the selling
9price of tangible personal property.
10 Subject to payment of amounts into the Build Illinois Fund
11and the McCormick Place Expansion Project Fund pursuant to the
12preceding paragraphs or in any amendments thereto hereafter
13enacted, beginning with the receipt of the first report of
14taxes paid by an eligible business and continuing for a 25-year
15period, the Department shall each month pay into the Energy
16Infrastructure Fund 80% of the net revenue realized from the
176.25% general rate on the selling price of Illinois-mined coal
18that was sold to an eligible business. For purposes of this
19paragraph, the term "eligible business" means a new electric
20generating facility certified pursuant to Section 605-332 of
21the Department of Commerce and Economic Opportunity Law of the
22Civil Administrative Code of Illinois.
23 Subject to payment of amounts into the Build Illinois Fund,
24the McCormick Place Expansion Project Fund, the Illinois Tax
25Increment Fund, and the Energy Infrastructure Fund pursuant to
26the preceding paragraphs or in any amendments to this Section

SB2026- 78 -LRB100 08814 HLH 18955 b
1hereafter enacted, beginning on the first day of the first
2calendar month to occur on or after the effective date of this
3amendatory Act of the 98th General Assembly, each month, from
4the collections made under Section 9 of the Use Tax Act,
5Section 9 of the Service Use Tax Act, Section 9 of the Service
6Occupation Tax Act, and Section 3 of the Retailers' Occupation
7Tax Act, the Department shall pay into the Tax Compliance and
8Administration Fund, to be used, subject to appropriation, to
9fund additional auditors and compliance personnel at the
10Department of Revenue, an amount equal to 1/12 of 5% of 80% of
11the cash receipts collected during the preceding fiscal year by
12the Audit Bureau of the Department under the Use Tax Act, the
13Service Use Tax Act, the Service Occupation Tax Act, the
14Retailers' Occupation Tax Act, and associated local occupation
15and use taxes administered by the Department.
16 Of the remainder of the moneys received by the Department
17pursuant to this Act, 75% shall be paid into the General
18Revenue Fund of the State Treasury and 25% shall be reserved in
19a special account and used only for the transfer to the Common
20School Fund as part of the monthly transfer from the General
21Revenue Fund in accordance with Section 8a of the State Finance
22Act.
23 The Department may, upon separate written notice to a
24taxpayer, require the taxpayer to prepare and file with the
25Department on a form prescribed by the Department within not
26less than 60 days after receipt of the notice an annual

SB2026- 79 -LRB100 08814 HLH 18955 b
1information return for the tax year specified in the notice.
2Such annual return to the Department shall include a statement
3of gross receipts as shown by the taxpayer's last Federal
4income tax return. If the total receipts of the business as
5reported in the Federal income tax return do not agree with the
6gross receipts reported to the Department of Revenue for the
7same period, the taxpayer shall attach to his annual return a
8schedule showing a reconciliation of the 2 amounts and the
9reasons for the difference. The taxpayer's annual return to the
10Department shall also disclose the cost of goods sold by the
11taxpayer during the year covered by such return, opening and
12closing inventories of such goods for such year, cost of goods
13used from stock or taken from stock and given away by the
14taxpayer during such year, pay roll information of the
15taxpayer's business during such year and any additional
16reasonable information which the Department deems would be
17helpful in determining the accuracy of the monthly, quarterly
18or annual returns filed by such taxpayer as hereinbefore
19provided for in this Section.
20 If the annual information return required by this Section
21is not filed when and as required, the taxpayer shall be liable
22as follows:
23 (i) Until January 1, 1994, the taxpayer shall be liable
24 for a penalty equal to 1/6 of 1% of the tax due from such
25 taxpayer under this Act during the period to be covered by
26 the annual return for each month or fraction of a month

SB2026- 80 -LRB100 08814 HLH 18955 b
1 until such return is filed as required, the penalty to be
2 assessed and collected in the same manner as any other
3 penalty provided for in this Act.
4 (ii) On and after January 1, 1994, the taxpayer shall
5 be liable for a penalty as described in Section 3-4 of the
6 Uniform Penalty and Interest Act.
7 The chief executive officer, proprietor, owner or highest
8ranking manager shall sign the annual return to certify the
9accuracy of the information contained therein. Any person who
10willfully signs the annual return containing false or
11inaccurate information shall be guilty of perjury and punished
12accordingly. The annual return form prescribed by the
13Department shall include a warning that the person signing the
14return may be liable for perjury.
15 The foregoing portion of this Section concerning the filing
16of an annual information return shall not apply to a serviceman
17who is not required to file an income tax return with the
18United States Government.
19 As soon as possible after the first day of each month, upon
20certification of the Department of Revenue, the Comptroller
21shall order transferred and the Treasurer shall transfer from
22the General Revenue Fund to the Motor Fuel Tax Fund an amount
23equal to 1.7% of 80% of the net revenue realized under this Act
24for the second preceding month. Beginning April 1, 2000, this
25transfer is no longer required and shall not be made.
26 Net revenue realized for a month shall be the revenue

SB2026- 81 -LRB100 08814 HLH 18955 b
1collected by the State pursuant to this Act, less the amount
2paid out during that month as refunds to taxpayers for
3overpayment of liability.
4 For greater simplicity of administration, it shall be
5permissible for manufacturers, importers and wholesalers whose
6products are sold by numerous servicemen in Illinois, and who
7wish to do so, to assume the responsibility for accounting and
8paying to the Department all tax accruing under this Act with
9respect to such sales, if the servicemen who are affected do
10not make written objection to the Department to this
11arrangement.
12(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
1398-298, eff. 8-9-13; 98-496, eff. 1-1-14; 98-756, eff. 7-16-14;
1498-1098, eff. 8-26-14; 99-352, eff. 8-12-15; 99-858, eff.
158-19-16.)
16 Section 20. The Retailers' Occupation Tax Act is amended by
17changing Sections 2-5.5, 2-10, and 3 as follows:
18 (35 ILCS 120/2-5.5)
19 Sec. 2-5.5. Food and drugs sold by not-for-profit
20organizations; exemption. The Department shall not collect the
211% tax imposed on food for human consumption that is to be
22consumed off the premises where it is sold (other than
23alcoholic beverages, soft drinks, and food that has been
24prepared for immediate consumption) and prescription and

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1nonprescription medicines, drugs, medical appliances, female
2and male condoms, and insulin, urine testing materials,
3syringes, and needles used by diabetics, for human use from any
4not-for-profit organization, that sells food in a food
5distribution program at a price below the retail cost of the
6food to purchasers who, as a condition of participation in the
7program, are required to perform community service, located in
8a county or municipality that notifies the Department, in
9writing, that the county or municipality does not want the tax
10to be collected from any of such organizations located in the
11county or municipality.
12(Source: P.A. 88-374.)
13 (35 ILCS 120/2-10)
14 Sec. 2-10. Rate of tax. Unless otherwise provided in this
15Section, the tax imposed by this Act is at the rate of 6.25% of
16gross receipts from sales of tangible personal property made in
17the course of business.
18 Beginning on July 1, 2000 and through December 31, 2000,
19with respect to motor fuel, as defined in Section 1.1 of the
20Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
21the Use Tax Act, the tax is imposed at the rate of 1.25%.
22 Beginning on August 6, 2010 through August 15, 2010, with
23respect to sales tax holiday items as defined in Section 2-8 of
24this Act, the tax is imposed at the rate of 1.25%.
25 Within 14 days after the effective date of this amendatory

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1Act of the 91st General Assembly, each retailer of motor fuel
2and gasohol shall cause the following notice to be posted in a
3prominently visible place on each retail dispensing device that
4is used to dispense motor fuel or gasohol in the State of
5Illinois: "As of July 1, 2000, the State of Illinois has
6eliminated the State's share of sales tax on motor fuel and
7gasohol through December 31, 2000. The price on this pump
8should reflect the elimination of the tax." The notice shall be
9printed in bold print on a sign that is no smaller than 4
10inches by 8 inches. The sign shall be clearly visible to
11customers. Any retailer who fails to post or maintain a
12required sign through December 31, 2000 is guilty of a petty
13offense for which the fine shall be $500 per day per each
14retail premises where a violation occurs.
15 With respect to gasohol, as defined in the Use Tax Act, the
16tax imposed by this Act applies to (i) 70% of the proceeds of
17sales made on or after January 1, 1990, and before July 1,
182003, (ii) 80% of the proceeds of sales made on or after July
191, 2003 and on or before December 31, 2018, and (iii) 100% of
20the proceeds of sales made thereafter. If, at any time,
21however, the tax under this Act on sales of gasohol, as defined
22in the Use Tax Act, is imposed at the rate of 1.25%, then the
23tax imposed by this Act applies to 100% of the proceeds of
24sales of gasohol made during that time.
25 With respect to majority blended ethanol fuel, as defined
26in the Use Tax Act, the tax imposed by this Act does not apply

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1to the proceeds of sales made on or after July 1, 2003 and on or
2before December 31, 2018 but applies to 100% of the proceeds of
3sales made thereafter.
4 With respect to biodiesel blends, as defined in the Use Tax
5Act, with no less than 1% and no more than 10% biodiesel, the
6tax imposed by this Act applies to (i) 80% of the proceeds of
7sales made on or after July 1, 2003 and on or before December
831, 2018 and (ii) 100% of the proceeds of sales made
9thereafter. If, at any time, however, the tax under this Act on
10sales of biodiesel blends, as defined in the Use Tax Act, with
11no less than 1% and no more than 10% biodiesel is imposed at
12the rate of 1.25%, then the tax imposed by this Act applies to
13100% of the proceeds of sales of biodiesel blends with no less
14than 1% and no more than 10% biodiesel made during that time.
15 With respect to 100% biodiesel, as defined in the Use Tax
16Act, and biodiesel blends, as defined in the Use Tax Act, with
17more than 10% but no more than 99% biodiesel, the tax imposed
18by this Act does not apply to the proceeds of sales made on or
19after July 1, 2003 and on or before December 31, 2018 but
20applies to 100% of the proceeds of sales made thereafter.
21 With respect to food for human consumption that is to be
22consumed off the premises where it is sold (other than
23alcoholic beverages, soft drinks, and food that has been
24prepared for immediate consumption) and prescription and
25nonprescription medicines, drugs, medical appliances, female
26and male condoms, products classified as Class III medical

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1devices by the United States Food and Drug Administration that
2are used for cancer treatment pursuant to a prescription, as
3well as any accessories and components related to those
4devices, modifications to a motor vehicle for the purpose of
5rendering it usable by a person with a disability, and insulin,
6urine testing materials, syringes, and needles used by
7diabetics, for human use, the tax is imposed at the rate of 1%.
8For the purposes of this Section, until September 1, 2009: the
9term "soft drinks" means any complete, finished, ready-to-use,
10non-alcoholic drink, whether carbonated or not, including but
11not limited to soda water, cola, fruit juice, vegetable juice,
12carbonated water, and all other preparations commonly known as
13soft drinks of whatever kind or description that are contained
14in any closed or sealed bottle, can, carton, or container,
15regardless of size; but "soft drinks" does not include coffee,
16tea, non-carbonated water, infant formula, milk or milk
17products as defined in the Grade A Pasteurized Milk and Milk
18Products Act, or drinks containing 50% or more natural fruit or
19vegetable juice.
20 Notwithstanding any other provisions of this Act,
21beginning September 1, 2009, "soft drinks" means non-alcoholic
22beverages that contain natural or artificial sweeteners. "Soft
23drinks" do not include beverages that contain milk or milk
24products, soy, rice or similar milk substitutes, or greater
25than 50% of vegetable or fruit juice by volume.
26 Until August 1, 2009, and notwithstanding any other

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

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1lotions and screens, unless those products are available by
2prescription only, regardless of whether the products meet the
3definition of "over-the-counter-drugs". For the purposes of
4this paragraph, "over-the-counter-drug" means a drug for human
5use that contains a label that identifies the product as a drug
6as required by 21 C.F.R. 201.66. The "over-the-counter-drug"
7label includes:
8 (A) A "Drug Facts" panel; or
9 (B) A statement of the "active ingredient(s)" with a
10 list of those ingredients contained in the compound,
11 substance or preparation.
12 Beginning on the effective date of this amendatory Act of
13the 98th General Assembly, "prescription and nonprescription
14medicines and drugs" includes medical cannabis purchased from a
15registered dispensing organization under the Compassionate Use
16of Medical Cannabis Pilot Program Act.
17(Source: P.A. 98-122, eff. 1-1-14; 99-143, eff. 7-27-15;
1899-858, eff. 8-19-16.)
19 (35 ILCS 120/3) (from Ch. 120, par. 442)
20 Sec. 3. Except as provided in this Section, on or before
21the twentieth day of each calendar month, every person engaged
22in the business of selling tangible personal property at retail
23in this State during the preceding calendar month shall file a
24return with the Department, stating:
25 1. The name of the seller;

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1 2. His residence address and the address of his
2 principal place of business and the address of the
3 principal place of business (if that is a different
4 address) from which he engages in the business of selling
5 tangible personal property at retail in this State;
6 3. Total amount of receipts received by him during the
7 preceding calendar month or quarter, as the case may be,
8 from sales of tangible personal property, and from services
9 furnished, by him during such preceding calendar month or
10 quarter;
11 4. Total amount received by him during the preceding
12 calendar month or quarter on charge and time sales of
13 tangible personal property, and from services furnished,
14 by him prior to the month or quarter for which the return
15 is filed;
16 5. Deductions allowed by law;
17 6. Gross receipts which were received by him during the
18 preceding calendar month or quarter and upon the basis of
19 which the tax is imposed;
20 7. The amount of credit provided in Section 2d of this
21 Act;
22 8. The amount of tax due;
23 9. The signature of the taxpayer; and
24 10. Such other reasonable information as the
25 Department may require.
26 If a taxpayer fails to sign a return within 30 days after

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1the proper notice and demand for signature by the Department,
2the return shall be considered valid and any amount shown to be
3due on the return shall be deemed assessed.
4 Each return shall be accompanied by the statement of
5prepaid tax issued pursuant to Section 2e for which credit is
6claimed.
7 Prior to October 1, 2003, and on and after September 1,
82004 a retailer may accept a Manufacturer's Purchase Credit
9certification from a purchaser in satisfaction of Use Tax as
10provided in Section 3-85 of the Use Tax Act if the purchaser
11provides the appropriate documentation as required by Section
123-85 of the Use Tax Act. A Manufacturer's Purchase Credit
13certification, accepted by a retailer prior to October 1, 2003
14and on and after September 1, 2004 as provided in Section 3-85
15of the Use Tax Act, may be used by that retailer to satisfy
16Retailers' Occupation Tax liability in the amount claimed in
17the certification, not to exceed 6.25% of the receipts subject
18to tax from a qualifying purchase. A Manufacturer's Purchase
19Credit reported on any original or amended return filed under
20this Act after October 20, 2003 for reporting periods prior to
21September 1, 2004 shall be disallowed. Manufacturer's
22Purchaser Credit reported on annual returns due on or after
23January 1, 2005 will be disallowed for periods prior to
24September 1, 2004. No Manufacturer's Purchase Credit may be
25used after September 30, 2003 through August 31, 2004 to
26satisfy any tax liability imposed under this Act, including any

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1audit liability.
2 The Department may require returns to be filed on a
3quarterly basis. If so required, a return for each calendar
4quarter shall be filed on or before the twentieth day of the
5calendar month following the end of such calendar quarter. The
6taxpayer shall also file a return with the Department for each
7of the first two months of each calendar quarter, on or before
8the twentieth day of the following calendar month, stating:
9 1. The name of the seller;
10 2. The address of the principal place of business from
11 which he engages in the business of selling tangible
12 personal property at retail in this State;
13 3. The total amount of taxable receipts received by him
14 during the preceding calendar month from sales of tangible
15 personal property by him during such preceding calendar
16 month, including receipts from charge and time sales, but
17 less all deductions allowed by law;
18 4. The amount of credit provided in Section 2d of this
19 Act;
20 5. The amount of tax due; and
21 6. Such other reasonable information as the Department
22 may require.
23 Beginning on October 1, 2003, any person who is not a
24licensed distributor, importing distributor, or manufacturer,
25as defined in the Liquor Control Act of 1934, but is engaged in
26the business of selling, at retail, alcoholic liquor shall file

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1a statement with the Department of Revenue, in a format and at
2a time prescribed by the Department, showing the total amount
3paid for alcoholic liquor purchased during the preceding month
4and such other information as is reasonably required by the
5Department. The Department may adopt rules to require that this
6statement be filed in an electronic or telephonic format. Such
7rules may provide for exceptions from the filing requirements
8of this paragraph. For the purposes of this paragraph, the term
9"alcoholic liquor" shall have the meaning prescribed in the
10Liquor Control Act of 1934.
11 Beginning on October 1, 2003, every distributor, importing
12distributor, and manufacturer of alcoholic liquor as defined in
13the Liquor Control Act of 1934, shall file a statement with the
14Department of Revenue, no later than the 10th day of the month
15for the preceding month during which transactions occurred, by
16electronic means, showing the total amount of gross receipts
17from the sale of alcoholic liquor sold or distributed during
18the preceding month to purchasers; identifying the purchaser to
19whom it was sold or distributed; the purchaser's tax
20registration number; and such other information reasonably
21required by the Department. A distributor, importing
22distributor, or manufacturer of alcoholic liquor must
23personally deliver, mail, or provide by electronic means to
24each retailer listed on the monthly statement a report
25containing a cumulative total of that distributor's, importing
26distributor's, or manufacturer's total sales of alcoholic

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1liquor to that retailer no later than the 10th day of the month
2for the preceding month during which the transaction occurred.
3The distributor, importing distributor, or manufacturer shall
4notify the retailer as to the method by which the distributor,
5importing distributor, or manufacturer will provide the sales
6information. If the retailer is unable to receive the sales
7information by electronic means, the distributor, importing
8distributor, or manufacturer shall furnish the sales
9information by personal delivery or by mail. For purposes of
10this paragraph, the term "electronic means" includes, but is
11not limited to, the use of a secure Internet website, e-mail,
12or facsimile.
13 If a total amount of less than $1 is payable, refundable or
14creditable, such amount shall be disregarded if it is less than
1550 cents and shall be increased to $1 if it is 50 cents or more.
16 Beginning October 1, 1993, a taxpayer who has an average
17monthly tax liability of $150,000 or more shall make all
18payments required by rules of the Department by electronic
19funds transfer. Beginning October 1, 1994, a taxpayer who has
20an average monthly tax liability of $100,000 or more shall make
21all payments required by rules of the Department by electronic
22funds transfer. Beginning October 1, 1995, a taxpayer who has
23an average monthly tax liability of $50,000 or more shall make
24all payments required by rules of the Department by electronic
25funds transfer. Beginning October 1, 2000, a taxpayer who has
26an annual tax liability of $200,000 or more shall make all

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

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

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

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1watercraft, motor vehicle retailer or trailer retailer for the
2purpose of resale or (ii) a retailer of aircraft, watercraft,
3motor vehicles, or trailers transfers more than one aircraft,
4watercraft, motor vehicle, or trailer to a purchaser for use as
5a qualifying rolling stock as provided in Section 2-5 of this
6Act, then that seller may report the transfer of all aircraft,
7watercraft, motor vehicles or trailers involved in that
8transaction to the Department on the same uniform
9invoice-transaction reporting return form. For purposes of
10this Section, "watercraft" means a Class 2, Class 3, or Class 4
11watercraft as defined in Section 3-2 of the Boat Registration
12and Safety Act, a personal watercraft, or any boat equipped
13with an inboard motor.
14 Any retailer who sells only motor vehicles, watercraft,
15aircraft, or trailers that are required to be registered with
16an agency of this State, so that all retailers' occupation tax
17liability is required to be reported, and is reported, on such
18transaction reporting returns and who is not otherwise required
19to file monthly or quarterly returns, need not file monthly or
20quarterly returns. However, those retailers shall be required
21to file returns on an annual basis.
22 The transaction reporting return, in the case of motor
23vehicles or trailers that are required to be registered with an
24agency of this State, shall be the same document as the Uniform
25Invoice referred to in Section 5-402 of The Illinois Vehicle
26Code and must show the name and address of the seller; the name

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

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1transaction; the amount of tax collected from the purchaser by
2the retailer on such transaction (or satisfactory evidence that
3such tax is not due in that particular instance, if that is
4claimed to be the fact); the place and date of the sale, a
5sufficient identification of the property sold, and such other
6information as the Department may reasonably require.
7 Such transaction reporting return shall be filed not later
8than 20 days after the day of delivery of the item that is
9being sold, but may be filed by the retailer at any time sooner
10than that if he chooses to do so. The transaction reporting
11return and tax remittance or proof of exemption from the
12Illinois use tax may be transmitted to the Department by way of
13the State agency with which, or State officer with whom the
14tangible personal property must be titled or registered (if
15titling or registration is required) if the Department and such
16agency or State officer determine that this procedure will
17expedite the processing of applications for title or
18registration.
19 With each such transaction reporting return, the retailer
20shall remit the proper amount of tax due (or shall submit
21satisfactory evidence that the sale is not taxable if that is
22the case), to the Department or its agents, whereupon the
23Department shall issue, in the purchaser's name, a use tax
24receipt (or a certificate of exemption if the Department is
25satisfied that the particular sale is tax exempt) which such
26purchaser may submit to the agency with which, or State officer

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

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1with the Department, but without the 2.1% or 1.75% discount
2provided for in this Section being allowed. When the user pays
3the tax directly to the Department, he shall pay the tax in the
4same amount and in the same form in which it would be remitted
5if the tax had been remitted to the Department by the retailer.
6 Refunds made by the seller during the preceding return
7period to purchasers, on account of tangible personal property
8returned to the seller, shall be allowed as a deduction under
9subdivision 5 of his monthly or quarterly return, as the case
10may be, in case the seller had theretofore included the
11receipts from the sale of such tangible personal property in a
12return filed by him and had paid the tax imposed by this Act
13with respect to such receipts.
14 Where the seller is a corporation, the return filed on
15behalf of such corporation shall be signed by the president,
16vice-president, secretary or treasurer or by the properly
17accredited agent of such corporation.
18 Where the seller is a limited liability company, the return
19filed on behalf of the limited liability company shall be
20signed by a manager, member, or properly accredited agent of
21the limited liability company.
22 Except as provided in this Section, the retailer filing the
23return under this Section shall, at the time of filing such
24return, pay to the Department the amount of tax imposed by this
25Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
26on and after January 1, 1990, or $5 per calendar year,

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1whichever is greater, which is allowed to reimburse the
2retailer for the expenses incurred in keeping records,
3preparing and filing returns, remitting the tax and supplying
4data to the Department on request. Any prepayment made pursuant
5to Section 2d of this Act shall be included in the amount on
6which such 2.1% or 1.75% discount is computed. In the case of
7retailers who report and pay the tax on a transaction by
8transaction basis, as provided in this Section, such discount
9shall be taken with each such tax remittance instead of when
10such retailer files his periodic return. The Department may
11disallow the discount for retailers whose certificate of
12registration is revoked at the time the return is filed, but
13only if the Department's decision to revoke the certificate of
14registration has become final.
15 Before October 1, 2000, if the taxpayer's average monthly
16tax liability to the Department under this Act, the Use Tax
17Act, the Service Occupation Tax Act, and the Service Use Tax
18Act, excluding any liability for prepaid sales tax to be
19remitted in accordance with Section 2d of this Act, was $10,000
20or more during the preceding 4 complete calendar quarters, he
21shall file a return with the Department each month by the 20th
22day of the month next following the month during which such tax
23liability is incurred and shall make payments to the Department
24on or before the 7th, 15th, 22nd and last day of the month
25during which such liability is incurred. On and after October
261, 2000, if the taxpayer's average monthly tax liability to the

SB2026- 102 -LRB100 08814 HLH 18955 b
1Department under this Act, the Use Tax Act, the Service
2Occupation Tax Act, and the Service Use Tax Act, excluding any
3liability for prepaid sales tax to be remitted in accordance
4with Section 2d of this Act, was $20,000 or more during the
5preceding 4 complete calendar quarters, he shall file a return
6with the Department each month by the 20th day of the month
7next following the month during which such tax liability is
8incurred and shall make payment to the Department on or before
9the 7th, 15th, 22nd and last day of the month during which such
10liability is incurred. If the month during which such tax
11liability is incurred began prior to January 1, 1985, each
12payment shall be in an amount equal to 1/4 of the taxpayer's
13actual liability for the month or an amount set by the
14Department not to exceed 1/4 of the average monthly liability
15of the taxpayer to the Department for the preceding 4 complete
16calendar quarters (excluding the month of highest liability and
17the month of lowest liability in such 4 quarter period). If the
18month during which such tax liability is incurred begins on or
19after January 1, 1985 and prior to January 1, 1987, each
20payment shall be in an amount equal to 22.5% of the taxpayer's
21actual liability for the month or 27.5% of the taxpayer's
22liability for the same calendar month of the preceding year. If
23the month during which such tax liability is incurred begins on
24or after January 1, 1987 and prior to January 1, 1988, each
25payment shall be in an amount equal to 22.5% of the taxpayer's
26actual liability for the month or 26.25% of the taxpayer's

SB2026- 103 -LRB100 08814 HLH 18955 b
1liability for the same calendar month of the preceding year. If
2the month during which such tax liability is incurred begins on
3or after January 1, 1988, and prior to January 1, 1989, or
4begins on or after January 1, 1996, each payment shall be in an
5amount equal to 22.5% of the taxpayer's actual liability for
6the month or 25% of the taxpayer's liability for the same
7calendar month of the preceding year. If the month during which
8such tax liability is incurred begins on or after January 1,
91989, and prior to January 1, 1996, each payment shall be in an
10amount equal to 22.5% of the taxpayer's actual liability for
11the month or 25% of the taxpayer's liability for the same
12calendar month of the preceding year or 100% of the taxpayer's
13actual liability for the quarter monthly reporting period. The
14amount of such quarter monthly payments shall be credited
15against the final tax liability of the taxpayer's return for
16that month. Before October 1, 2000, once applicable, the
17requirement of the making of quarter monthly payments to the
18Department by taxpayers having an average monthly tax liability
19of $10,000 or more as determined in the manner provided above
20shall continue until such taxpayer's average monthly liability
21to the Department during the preceding 4 complete calendar
22quarters (excluding the month of highest liability and the
23month of lowest liability) is less than $9,000, or until such
24taxpayer's average monthly liability to the Department as
25computed for each calendar quarter of the 4 preceding complete
26calendar quarter period is less than $10,000. However, if a

SB2026- 104 -LRB100 08814 HLH 18955 b
1taxpayer can show the Department that a substantial change in
2the taxpayer's business has occurred which causes the taxpayer
3to anticipate that his average monthly tax liability for the
4reasonably foreseeable future will fall below the $10,000
5threshold stated above, then such taxpayer may petition the
6Department for a change in such taxpayer's reporting status. On
7and after October 1, 2000, once applicable, the requirement of
8the making of quarter monthly payments to the Department by
9taxpayers having an average monthly tax liability of $20,000 or
10more as determined in the manner provided above shall continue
11until such taxpayer's average monthly liability to the
12Department during the preceding 4 complete calendar quarters
13(excluding the month of highest liability and the month of
14lowest liability) is less than $19,000 or until such taxpayer's
15average monthly liability to the Department as computed for
16each calendar quarter of the 4 preceding complete calendar
17quarter period is less than $20,000. However, if a taxpayer can
18show the Department that a substantial change in the taxpayer's
19business has occurred which causes the taxpayer to anticipate
20that his average monthly tax liability for the reasonably
21foreseeable future will fall below the $20,000 threshold stated
22above, then such taxpayer may petition the Department for a
23change in such taxpayer's reporting status. The Department
24shall change such taxpayer's reporting status unless it finds
25that such change is seasonal in nature and not likely to be
26long term. If any such quarter monthly payment is not paid at

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1the time or in the amount required by this Section, then the
2taxpayer shall be liable for penalties and interest on the
3difference between the minimum amount due as a payment and the
4amount of such quarter monthly payment actually and timely
5paid, except insofar as the taxpayer has previously made
6payments for that month to the Department in excess of the
7minimum payments previously due as provided in this Section.
8The Department shall make reasonable rules and regulations to
9govern the quarter monthly payment amount and quarter monthly
10payment dates for taxpayers who file on other than a calendar
11monthly basis.
12 The provisions of this paragraph apply before October 1,
132001. Without regard to whether a taxpayer is required to make
14quarter monthly payments as specified above, any taxpayer who
15is required by Section 2d of this Act to collect and remit
16prepaid taxes and has collected prepaid taxes which average in
17excess of $25,000 per month during the preceding 2 complete
18calendar quarters, shall file a return with the Department as
19required by Section 2f and shall make payments to the
20Department on or before the 7th, 15th, 22nd and last day of the
21month during which such liability is incurred. If the month
22during which such tax liability is incurred began prior to
23September 1, 1985 (the effective date of Public Act 84-221)
24this amendatory Act of 1985, each payment shall be in an amount
25not less than 22.5% of the taxpayer's actual liability under
26Section 2d. If the month during which such tax liability is

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1incurred begins on or after January 1, 1986, each payment shall
2be in an amount equal to 22.5% of the taxpayer's actual
3liability for the month or 27.5% of the taxpayer's liability
4for the same calendar month of the preceding calendar year. If
5the month during which such tax liability is incurred begins on
6or after January 1, 1987, each payment shall be in an amount
7equal to 22.5% of the taxpayer's actual liability for the month
8or 26.25% of the taxpayer's liability for the same calendar
9month of the preceding year. The amount of such quarter monthly
10payments shall be credited against the final tax liability of
11the taxpayer's return for that month filed under this Section
12or Section 2f, as the case may be. Once applicable, the
13requirement of the making of quarter monthly payments to the
14Department pursuant to this paragraph shall continue until such
15taxpayer's average monthly prepaid tax collections during the
16preceding 2 complete calendar quarters is $25,000 or less. If
17any such quarter monthly payment is not paid at the time or in
18the amount required, the taxpayer shall be liable for penalties
19and interest on such difference, except insofar as the taxpayer
20has previously made payments for that month in excess of the
21minimum payments previously due.
22 The provisions of this paragraph apply on and after October
231, 2001. Without regard to whether a taxpayer is required to
24make quarter monthly payments as specified above, any taxpayer
25who is required by Section 2d of this Act to collect and remit
26prepaid taxes and has collected prepaid taxes that average in

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

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1taxpayer's liabilities under this Act, the Use Tax Act, the
2Service Occupation Tax Act and the Service Use Tax Act, as
3shown on an original monthly return, the Department shall, if
4requested by the taxpayer, issue to the taxpayer a credit
5memorandum no later than 30 days after the date of payment. The
6credit evidenced by such credit memorandum may be assigned by
7the taxpayer to a similar taxpayer under this Act, the Use Tax
8Act, the Service Occupation Tax Act or the Service Use Tax Act,
9in accordance with reasonable rules and regulations to be
10prescribed by the Department. If no such request is made, the
11taxpayer may credit such excess payment against tax liability
12subsequently to be remitted to the Department under this Act,
13the Use Tax Act, the Service Occupation Tax Act or the Service
14Use Tax Act, in accordance with reasonable rules and
15regulations prescribed by the Department. If the Department
16subsequently determined that all or any part of the credit
17taken was not actually due to the taxpayer, the taxpayer's 2.1%
18and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
19of the difference between the credit taken and that actually
20due, and that taxpayer shall be liable for penalties and
21interest on such difference.
22 If a retailer of motor fuel is entitled to a credit under
23Section 2d of this Act which exceeds the taxpayer's liability
24to the Department under this Act for the month which the
25taxpayer is filing a return, the Department shall issue the
26taxpayer a credit memorandum for the excess.

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1 Beginning January 1, 1990, each month the Department shall
2pay into the Local Government Tax Fund, a special fund in the
3State treasury which is hereby created, the net revenue
4realized for the preceding month from the 1% tax on sales of
5food for human consumption which is to be consumed off the
6premises where it is sold (other than alcoholic beverages, soft
7drinks and food which has been prepared for immediate
8consumption) and prescription and nonprescription medicines,
9drugs, medical appliances, female and male condoms, products
10classified as Class III medical devices by the United States
11Food and Drug Administration that are used for cancer treatment
12pursuant to a prescription, as well as any accessories and
13components related to those devices, and insulin, urine testing
14materials, syringes and needles used by diabetics.
15 Beginning January 1, 1990, each month the Department shall
16pay into the County and Mass Transit District Fund, a special
17fund in the State treasury which is hereby created, 4% of the
18net revenue realized for the preceding month from the 6.25%
19general rate.
20 Beginning August 1, 2000, each month the Department shall
21pay into the County and Mass Transit District Fund 20% of the
22net revenue realized for the preceding month from the 1.25%
23rate on the selling price of motor fuel and gasohol. Beginning
24September 1, 2010, each month the Department shall pay into the
25County and Mass Transit District Fund 20% of the net revenue
26realized for the preceding month from the 1.25% rate on the

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1selling price of sales tax holiday items.
2 Beginning January 1, 1990, each month the Department shall
3pay into the Local Government Tax Fund 16% of the net revenue
4realized for the preceding month from the 6.25% general rate on
5the selling price of tangible personal property.
6 Beginning August 1, 2000, each month the Department shall
7pay into the Local Government Tax Fund 80% of the net revenue
8realized for the preceding month from the 1.25% rate on the
9selling price of motor fuel and gasohol. Beginning September 1,
102010, each month the Department shall pay into the Local
11Government Tax Fund 80% of the net revenue realized for the
12preceding month from the 1.25% rate on the selling price of
13sales tax holiday items.
14 Beginning October 1, 2009, each month the Department shall
15pay into the Capital Projects Fund an amount that is equal to
16an amount estimated by the Department to represent 80% of the
17net revenue realized for the preceding month from the sale of
18candy, grooming and hygiene products, and soft drinks that had
19been taxed at a rate of 1% prior to September 1, 2009 but that
20are now taxed at 6.25%.
21 Beginning July 1, 2011, each month the Department shall pay
22into the Clean Air Act Permit Fund 80% of the net revenue
23realized for the preceding month from the 6.25% general rate on
24the selling price of sorbents used in Illinois in the process
25of sorbent injection as used to comply with the Environmental
26Protection Act or the federal Clean Air Act, but the total

SB2026- 111 -LRB100 08814 HLH 18955 b
1payment into the Clean Air Act Permit Fund under this Act and
2the Use Tax Act shall not exceed $2,000,000 in any fiscal year.
3 Beginning July 1, 2013, each month the Department shall pay
4into the Underground Storage Tank Fund from the proceeds
5collected under this Act, the Use Tax Act, the Service Use Tax
6Act, and the Service Occupation Tax Act an amount equal to the
7average monthly deficit in the Underground Storage Tank Fund
8during the prior year, as certified annually by the Illinois
9Environmental Protection Agency, but the total payment into the
10Underground Storage Tank Fund under this Act, the Use Tax Act,
11the Service Use Tax Act, and the Service Occupation Tax Act
12shall not exceed $18,000,000 in any State fiscal year. As used
13in this paragraph, the "average monthly deficit" shall be equal
14to the difference between the average monthly claims for
15payment by the fund and the average monthly revenues deposited
16into the fund, excluding payments made pursuant to this
17paragraph.
18 Beginning July 1, 2015, of the remainder of the moneys
19received by the Department under the Use Tax Act, the Service
20Use Tax Act, the Service Occupation Tax Act, and this Act, each
21month the Department shall deposit $500,000 into the State
22Crime Laboratory Fund.
23 Of the remainder of the moneys received by the Department
24pursuant to this Act, (a) 1.75% thereof shall be paid into the
25Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
26and after July 1, 1989, 3.8% thereof shall be paid into the

SB2026- 112 -LRB100 08814 HLH 18955 b
1Build Illinois Fund; provided, however, that if in any fiscal
2year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
3may be, of the moneys received by the Department and required
4to be paid into the Build Illinois Fund pursuant to this Act,
5Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
6Act, and Section 9 of the Service Occupation Tax Act, such Acts
7being hereinafter called the "Tax Acts" and such aggregate of
82.2% or 3.8%, as the case may be, of moneys being hereinafter
9called the "Tax Act Amount", and (2) the amount transferred to
10the Build Illinois Fund from the State and Local Sales Tax
11Reform Fund shall be less than the Annual Specified Amount (as
12hereinafter defined), an amount equal to the difference shall
13be immediately paid into the Build Illinois Fund from other
14moneys received by the Department pursuant to the Tax Acts; the
15"Annual Specified Amount" means the amounts specified below for
16fiscal years 1986 through 1993:
17Fiscal YearAnnual Specified Amount
181986$54,800,000
191987$76,650,000
201988$80,480,000
211989$88,510,000
221990$115,330,000
231991$145,470,000
241992$182,730,000
251993$206,520,000;
26and means the Certified Annual Debt Service Requirement (as

SB2026- 113 -LRB100 08814 HLH 18955 b
1defined in Section 13 of the Build Illinois Bond Act) or the
2Tax Act Amount, whichever is greater, for fiscal year 1994 and
3each fiscal year thereafter; and further provided, that if on
4the last business day of any month the sum of (1) the Tax Act
5Amount required to be deposited into the Build Illinois Bond
6Account in the Build Illinois Fund during such month and (2)
7the amount transferred to the Build Illinois Fund from the
8State and Local Sales Tax Reform Fund shall have been less than
91/12 of the Annual Specified Amount, an amount equal to the
10difference shall be immediately paid into the Build Illinois
11Fund from other moneys received by the Department pursuant to
12the Tax Acts; and, further provided, that in no event shall the
13payments required under the preceding proviso result in
14aggregate payments into the Build Illinois Fund pursuant to
15this clause (b) for any fiscal year in excess of the greater of
16(i) the Tax Act Amount or (ii) the Annual Specified Amount for
17such fiscal year. The amounts payable into the Build Illinois
18Fund under clause (b) of the first sentence in this paragraph
19shall be payable only until such time as the aggregate amount
20on deposit under each trust indenture securing Bonds issued and
21outstanding pursuant to the Build Illinois Bond Act is
22sufficient, taking into account any future investment income,
23to fully provide, in accordance with such indenture, for the
24defeasance of or the payment of the principal of, premium, if
25any, and interest on the Bonds secured by such indenture and on
26any Bonds expected to be issued thereafter and all fees and

SB2026- 114 -LRB100 08814 HLH 18955 b
1costs payable with respect thereto, all as certified by the
2Director of the Bureau of the Budget (now Governor's Office of
3Management and Budget). If on the last business day of any
4month in which Bonds are outstanding pursuant to the Build
5Illinois Bond Act, the aggregate of moneys deposited in the
6Build Illinois Bond Account in the Build Illinois Fund in such
7month shall be less than the amount required to be transferred
8in such month from the Build Illinois Bond Account to the Build
9Illinois Bond Retirement and Interest Fund pursuant to Section
1013 of the Build Illinois Bond Act, an amount equal to such
11deficiency shall be immediately paid from other moneys received
12by the Department pursuant to the Tax Acts to the Build
13Illinois Fund; provided, however, that any amounts paid to the
14Build Illinois Fund in any fiscal year pursuant to this
15sentence shall be deemed to constitute payments pursuant to
16clause (b) of the first sentence of this paragraph and shall
17reduce the amount otherwise payable for such fiscal year
18pursuant to that clause (b). The moneys received by the
19Department pursuant to this Act and required to be deposited
20into the Build Illinois Fund are subject to the pledge, claim
21and charge set forth in Section 12 of the Build Illinois Bond
22Act.
23 Subject to payment of amounts into the Build Illinois Fund
24as provided in the preceding paragraph or in any amendment
25thereto hereafter enacted, the following specified monthly
26installment of the amount requested in the certificate of the

SB2026- 115 -LRB100 08814 HLH 18955 b
1Chairman of the Metropolitan Pier and Exposition Authority
2provided under Section 8.25f of the State Finance Act, but not
3in excess of sums designated as "Total Deposit", shall be
4deposited in the aggregate from collections under Section 9 of
5the Use Tax Act, Section 9 of the Service Use Tax Act, Section
69 of the Service Occupation Tax Act, and Section 3 of the
7Retailers' Occupation Tax Act into the McCormick Place
8Expansion Project Fund in the specified fiscal years.
9Fiscal YearTotal Deposit
101993 $0
111994 53,000,000
121995 58,000,000
131996 61,000,000
141997 64,000,000
151998 68,000,000
161999 71,000,000
172000 75,000,000
182001 80,000,000
192002 93,000,000
202003 99,000,000
212004103,000,000
222005108,000,000
232006113,000,000
242007119,000,000
252008126,000,000

SB2026- 116 -LRB100 08814 HLH 18955 b
12009132,000,000
22010139,000,000
32011146,000,000
42012153,000,000
52013161,000,000
62014170,000,000
72015179,000,000
82016189,000,000
92017199,000,000
102018210,000,000
112019221,000,000
122020233,000,000
132021246,000,000
142022260,000,000
152023275,000,000
162024 275,000,000
172025 275,000,000
182026 279,000,000
192027 292,000,000
202028 307,000,000
212029 322,000,000
222030 338,000,000
232031 350,000,000
242032 350,000,000
25and
26each fiscal year

SB2026- 117 -LRB100 08814 HLH 18955 b
1thereafter that bonds
2are outstanding under
3Section 13.2 of the
4Metropolitan Pier and
5Exposition Authority Act,
6but not after fiscal year 2060.
7 Beginning July 20, 1993 and in each month of each fiscal
8year thereafter, one-eighth of the amount requested in the
9certificate of the Chairman of the Metropolitan Pier and
10Exposition Authority for that fiscal year, less the amount
11deposited into the McCormick Place Expansion Project Fund by
12the State Treasurer in the respective month under subsection
13(g) of Section 13 of the Metropolitan Pier and Exposition
14Authority Act, plus cumulative deficiencies in the deposits
15required under this Section for previous months and years,
16shall be deposited into the McCormick Place Expansion Project
17Fund, until the full amount requested for the fiscal year, but
18not in excess of the amount specified above as "Total Deposit",
19has been deposited.
20 Subject to payment of amounts into the Build Illinois Fund
21and the McCormick Place Expansion Project Fund pursuant to the
22preceding paragraphs or in any amendments thereto hereafter
23enacted, beginning July 1, 1993 and ending on September 30,
242013, the Department shall each month pay into the Illinois Tax
25Increment Fund 0.27% of 80% of the net revenue realized for the
26preceding month from the 6.25% general rate on the selling

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1price of tangible personal property.
2 Subject to payment of amounts into the Build Illinois Fund
3and the McCormick Place Expansion Project Fund pursuant to the
4preceding paragraphs or in any amendments thereto hereafter
5enacted, beginning with the receipt of the first report of
6taxes paid by an eligible business and continuing for a 25-year
7period, the Department shall each month pay into the Energy
8Infrastructure Fund 80% of the net revenue realized from the
96.25% general rate on the selling price of Illinois-mined coal
10that was sold to an eligible business. For purposes of this
11paragraph, the term "eligible business" means a new electric
12generating facility certified pursuant to Section 605-332 of
13the Department of Commerce and Economic Opportunity Law of the
14Civil Administrative Code of Illinois.
15 Subject to payment of amounts into the Build Illinois Fund,
16the McCormick Place Expansion Project Fund, the Illinois Tax
17Increment Fund, and the Energy Infrastructure Fund pursuant to
18the preceding paragraphs or in any amendments to this Section
19hereafter enacted, beginning on the first day of the first
20calendar month to occur on or after August 26, 2014 (the
21effective date of Public Act 98-1098) this amendatory Act of
22the 98th General Assembly, each month, from the collections
23made under Section 9 of the Use Tax Act, Section 9 of the
24Service Use Tax Act, Section 9 of the Service Occupation Tax
25Act, and Section 3 of the Retailers' Occupation Tax Act, the
26Department shall pay into the Tax Compliance and Administration

SB2026- 119 -LRB100 08814 HLH 18955 b
1Fund, to be used, subject to appropriation, to fund additional
2auditors and compliance personnel at the Department of Revenue,
3an amount equal to 1/12 of 5% of 80% of the cash receipts
4collected during the preceding fiscal year by the Audit Bureau
5of the Department under the Use Tax Act, the Service Use Tax
6Act, the Service Occupation Tax Act, the Retailers' Occupation
7Tax Act, and associated local occupation and use taxes
8administered by the Department.
9 Of the remainder of the moneys received by the Department
10pursuant to this Act, 75% thereof shall be paid into the State
11Treasury and 25% shall be reserved in a special account and
12used only for the transfer to the Common School Fund as part of
13the monthly transfer from the General Revenue Fund in
14accordance with Section 8a of the State Finance Act.
15 The Department may, upon separate written notice to a
16taxpayer, require the taxpayer to prepare and file with the
17Department on a form prescribed by the Department within not
18less than 60 days after receipt of the notice an annual
19information return for the tax year specified in the notice.
20Such annual return to the Department shall include a statement
21of gross receipts as shown by the retailer's last Federal
22income tax return. If the total receipts of the business as
23reported in the Federal income tax return do not agree with the
24gross receipts reported to the Department of Revenue for the
25same period, the retailer shall attach to his annual return a
26schedule showing a reconciliation of the 2 amounts and the

SB2026- 120 -LRB100 08814 HLH 18955 b
1reasons for the difference. The retailer's annual return to the
2Department shall also disclose the cost of goods sold by the
3retailer during the year covered by such return, opening and
4closing inventories of such goods for such year, costs of goods
5used from stock or taken from stock and given away by the
6retailer during such year, payroll information of the
7retailer's business during such year and any additional
8reasonable information which the Department deems would be
9helpful in determining the accuracy of the monthly, quarterly
10or annual returns filed by such retailer as provided for in
11this Section.
12 If the annual information return required by this Section
13is not filed when and as required, the taxpayer shall be liable
14as follows:
15 (i) Until January 1, 1994, the taxpayer shall be liable
16 for a penalty equal to 1/6 of 1% of the tax due from such
17 taxpayer under this Act during the period to be covered by
18 the annual return for each month or fraction of a month
19 until such return is filed as required, the penalty to be
20 assessed and collected in the same manner as any other
21 penalty provided for in this Act.
22 (ii) On and after January 1, 1994, the taxpayer shall
23 be liable for a penalty as described in Section 3-4 of the
24 Uniform Penalty and Interest Act.
25 The chief executive officer, proprietor, owner or highest
26ranking manager shall sign the annual return to certify the

SB2026- 121 -LRB100 08814 HLH 18955 b
1accuracy of the information contained therein. Any person who
2willfully signs the annual return containing false or
3inaccurate information shall be guilty of perjury and punished
4accordingly. The annual return form prescribed by the
5Department shall include a warning that the person signing the
6return may be liable for perjury.
7 The provisions of this Section concerning the filing of an
8annual information return do not apply to a retailer who is not
9required to file an income tax return with the United States
10Government.
11 As soon as possible after the first day of each month, upon
12certification of the Department of Revenue, the Comptroller
13shall order transferred and the Treasurer shall transfer from
14the General Revenue Fund to the Motor Fuel Tax Fund an amount
15equal to 1.7% of 80% of the net revenue realized under this Act
16for the second preceding month. Beginning April 1, 2000, this
17transfer is no longer required and shall not be made.
18 Net revenue realized for a month shall be the revenue
19collected by the State pursuant to this Act, less the amount
20paid out during that month as refunds to taxpayers for
21overpayment of liability.
22 For greater simplicity of administration, manufacturers,
23importers and wholesalers whose products are sold at retail in
24Illinois by numerous retailers, and who wish to do so, may
25assume the responsibility for accounting and paying to the
26Department all tax accruing under this Act with respect to such

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1sales, if the retailers who are affected do not make written
2objection to the Department to this arrangement.
3 Any person who promotes, organizes, provides retail
4selling space for concessionaires or other types of sellers at
5the Illinois State Fair, DuQuoin State Fair, county fairs,
6local fairs, art shows, flea markets and similar exhibitions or
7events, including any transient merchant as defined by Section
82 of the Transient Merchant Act of 1987, is required to file a
9report with the Department providing the name of the merchant's
10business, the name of the person or persons engaged in
11merchant's business, the permanent address and Illinois
12Retailers Occupation Tax Registration Number of the merchant,
13the dates and location of the event and other reasonable
14information that the Department may require. The report must be
15filed not later than the 20th day of the month next following
16the month during which the event with retail sales was held.
17Any person who fails to file a report required by this Section
18commits a business offense and is subject to a fine not to
19exceed $250.
20 Any person engaged in the business of selling tangible
21personal property at retail as a concessionaire or other type
22of seller at the Illinois State Fair, county fairs, art shows,
23flea markets and similar exhibitions or events, or any
24transient merchants, as defined by Section 2 of the Transient
25Merchant Act of 1987, may be required to make a daily report of
26the amount of such sales to the Department and to make a daily

SB2026- 123 -LRB100 08814 HLH 18955 b
1payment of the full amount of tax due. The Department shall
2impose this requirement when it finds that there is a
3significant risk of loss of revenue to the State at such an
4exhibition or event. Such a finding shall be based on evidence
5that a substantial number of concessionaires or other sellers
6who are not residents of Illinois will be engaging in the
7business of selling tangible personal property at retail at the
8exhibition or event, or other evidence of a significant risk of
9loss of revenue to the State. The Department shall notify
10concessionaires and other sellers affected by the imposition of
11this requirement. In the absence of notification by the
12Department, the concessionaires and other sellers shall file
13their returns as otherwise required in this Section.
14(Source: P.A. 98-24, eff. 6-19-13; 98-109, eff. 7-25-13;
1598-496, eff. 1-1-14; 98-756, eff. 7-16-14; 98-1098, eff.
168-26-14; 99-352, eff. 8-12-15; 99-858, eff. 8-19-16; 99-933,
17eff. 1-27-17; revised 2-3-17.)
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