Bill Text: IL SB3019 | 2025-2026 | 104th General Assembly | Enrolled

---

Bill Title: Creates the Targeted Advertising Services Tax Act. Provides that a tax is imposed upon providers of targeted advertising services at the rate of 10% of the gross receipts derived from such targeted advertising services provided in this State. Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Amends the Business Corporation Act of 1983. Imposes a social media platform fee. Amends the Illinois Coal Technology Development Assistance Act. Provides that certain amounts required to be transferred into the Coal Technology Development Assistance Fund from the General Revenue Fund shall be directly deposited into the Coal Technology Development Assistance Fund instead. Amends the Illinois Income Tax Act. Provides that certain tax checkoff amounts shall be deposited directly into the specified funds. Amends the Environmental Protection Act. Makes changes concerning certain fees imposed with respect to the sale of new or used tires. Amends the Hotel Operators' Occupation Tax Act. Defines "hotel marketplace" and "hotel marketplace facilitator". Provides that hotel marketplace facilitators that meet specified tax remittance thresholds are considered to be hotel operators for the purposes of the taxes under the Act. Provides that a marketplace facilitator that is considered a hotel operator is required to remit the applicable taxes under the Act and any local hotel operators' occupation taxes administered by the Department of Revenue on all rentals, leases, or lettings of Illinois hotel rooms made by the hotel marketplace facilitator or facilitated for marketplace hotel operators to guests. Contains provisions concerning re-renters. Amends the Illinois Income Tax Act. Provides that, if a late discretionary hearing for a revised final assessment has been granted after a lien has attached, then the lien shall remain in full force except to the extent to which the final assessment may be reduced by a revised final assessment following the hearing or review. Repeals the Messages Tax Act. Makes changes concerning cross-references to that Act. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act, and various Acts imposing local use and occupation taxes to replace references to "alcoholic beverages" with "alcoholic liquor taxable under a specified provision of the Liquor Control Act of 1934". Makes technical changes concerning incorporation of provisions of the Retailers' Occupation Tax Act into various other Acts. Amends the Illinois Gambling Act. Makes changes to provisions concerning gaming at a temporary facility. Makes changes concerning the privilege tax imposed on persons engaged in the business of conducting gambling operations. Amends the Sports Wagering Act. Makes changes concerning the privilege taxes imposed under the Act Amends the Illinois State Auditing Act. Provides that the Auditor General shall conduct a compliance audit in accordance with specified provisions of the Statewide Innovation Development and Economy Act. Amends the State Finance Act, the Illinois Municipal Code, the Metro-East Park and Recreation District Act, and the Local Mass Transit District Act. Provides for the transfer of the local sales tax increment to the STAR Bonds Revenue Fund. Amends the Illinois Income Tax Act. In provisions concerning the entity-level tax, provides that a partnership making an entity-level tax election may elect to determine its tax base using a full distributive share method or an Illinois-sourced income method. Amends the Motor Fuel Tax Law. Pauses certain rate adjustments. Makes other changes. Amends the Reimagining Energy and Vehicles in Illinois Act. Provides that the Department of Commerce and Economic Opportunity shall not enter into any new agreements under the Act after December 31, 2028 (instead of December 31, 2027). Effective immediately, except that certain provisions take effect on July 1, 2026.

Sponsorship: Partisan Bill (Democrat 8)

Status: (Passed) 2026-06-30 - Added as Co-Sponsor Sen. Mary Edly-Allen [SB3019 Detail]

Download: Illinois-2025-SB3019-Enrolled.html

---

SB3019 Enrolled LRB104 20255 HLH 33706 b
AN ACT concerning finance.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
ARTICLE 1.
Section 1-1. Short title. This Article may be cited as the
Targeted Advertising Services Tax Act. References in this
Article to "this Act" mean this Article.
Section 1-5. Findings and intent. The General Assembly
finds and declares the following:
(1) Many goods and services that traditionally have
been subject to Illinois State and local use and
occupation taxes have avoided taxation in the digital era.
Many digital transactions are harder to bring into the
sales tax base because, instead of paying a monetary fee,
customers often barter their personal information for
access to digital platforms. This personal information, in
turn, is sold for use in targeted advertisements on
digital platforms.
(2) The value of the consumption provided by digital
platforms is typically greater in proportion to the size
of the network. The General Assembly finds that the
consumption value provided by small networks is

SB3019 Enrolled - 2 - LRB104 20255 HLH 33706 b
negligible, especially when compared to the compliance
burden that would be imposed on those digital platforms.
Section 1-10. Definitions. As used in this Act:
"Department" means the Department of Revenue.
"Device" means any medium through which targeted
advertising services may be accessed, including stationary or
portable computing devices, tablets, phones, and smart
devices.
"Digital interface" means any type of software, including
a website, part of a website, or application, that a
user-consumer is able to access with a device.
"Gross receipts" means income or revenue from all sources,
before any expenses or taxes, computed according to generally
accepted accounting principles.
"Other comparable advertising services" includes the
following targeted advertising services:
(1) Display advertising;
(2) Internet programmatic video advertising;
(3) Multichannel video programming distributor
advertising conveyed via cable television, satellite
television, or a digital fiber-optic distribution system;
(4) Advertising on social media;
(5) Native advertising; and
(6) Incentivized or rewarded advertising.
"News media entity" means an entity engaged primarily in

SB3019 Enrolled - 3 - LRB104 20255 HLH 33706 b
the business of newsgathering, reporting, or publishing
articles or commentary about news, current events, culture, or
other matters of public interest. "News media entity" does not
include an entity that is primarily an aggregator or
re-publisher of third-party content.
"Person" means any natural individual, firm, partnership,
association, corporation, limited liability company, or trust;
any receiver, executor, trustee, guardian, or other
representative appointed by order of any court; or any other
entity. Unless expressly provided otherwise, the term "person"
does not include a governmental entity or a unit or
instrumentality of a governmental entity.
"Programmatic" means capable of automating advertising
services. Programmatic targeted advertising services may be
sold in real time by employing technology that uses
computer-driven or software-driven workflow or machine
learning algorithms to deliver advertisements to
user-consumers based on user-advertiser-defined parameters,
including precise user-consumer targeting data such as
user-consumer:
(1) Geographic locations;
(2) Types of devices;
(3) Recent online search behaviors;
(4) Browsing history;
(5) Shopping history;
(6) Purchase history; and

SB3019 Enrolled - 4 - LRB104 20255 HLH 33706 b
(7) Biographical and other information compiled in
databases.
"Provider of Targeted Advertising Services" or "Provider"
means a person engaged in the occupation of providing targeted
advertising services whose annual cumulative gross receipts
from targeted advertising services provided in this State
during the previous 12-month period exceed $1,000,000.
Each provider of targeted advertising services in this
State shall determine on a quarterly basis, ending on the last
day of March, June, September, and December, whether the
provider met the $1,000,000 cumulative gross receipts
threshold for the preceding 12-month period. If the provider
meets the threshold for a 12-month period, the provider is
subject to the tax imposed under this Act and is required to
remit the tax and file returns for one year. At the end of that
one-year period, the provider of targeted advertising services
shall determine whether it met the threshold during the
preceding 12-month period. If the provider meets the threshold
for the preceding 12-month period, they are required to
continue to remit the tax imposed under this Act and file
returns for the subsequent year. If at the end of a one-year
period a provider of targeted advertising services determines
that it did not meet the threshold during the preceding
12-month period, that provider shall subsequently determine on
a quarterly basis, ending on the last day of March, June,
September, and December, whether the provider meets the

SB3019 Enrolled - 5 - LRB104 20255 HLH 33706 b
threshold for the preceding 12-month period.
"Targeted advertising services" means any programmatic
written, oral, or graphic statement or representation conveyed
through a digital interface or any other method of delivery,
including, but not limited to, banner advertising, search
engine advertising, interstitial advertising, and other
comparable advertising services that use personal information
about the people to whom the ads are being served. "Targeted
advertising services" does not include advertisement services
on digital interfaces owned or operated by or operated on
behalf of a news media entity.
"User-advertiser" means a person who contracts with a
provider for targeted advertising services.
"User-consumer" or "user" means an individual or any other
person to whom targeted advertisements are conveyed.
"User-consumer contact information" means a
user-consumer's email address, telephone number, home address,
mailing address, or any credit card information necessary to
engage in a sales transaction.
"User-consumer data" means any information that
identifies, relates to, describes, is capable of being
associated with, or could reasonably be linked with a
user-consumer, whether directly submitted to the provider or
user-advertiser by the user-consumer or derived from other
sources.

SB3019 Enrolled - 6 - LRB104 20255 HLH 33706 b
Section 1-15. Tax imposed.
(a) Beginning January 1, 2027, a tax is imposed upon
providers of targeted advertising services at the rate of 10%
of the gross receipts derived from such targeted advertising
services provided in this State.
(b) The impact of the tax levied by this Act is imposed
upon providers engaged in the business of providing targeted
advertising services to user-advertisers in this State.
(c) Targeted advertising services are provided in this
State when the location of the user-consumer of the targeted
advertisement is in this State pursuant to Section 1-20.
(d) The tax imposed in this Section shall be in addition to
all other occupation or privilege taxes imposed by the State
of Illinois or by any municipal corporation or political
subdivision thereof.
(e) The tax imposed in this Section is not imposed upon the
privilege of engaging in any business in Interstate Commerce
or otherwise, which business may not, under the Constitution
and Statutes of the United States, be made the subject of
taxation by this State.
(f) The tax imposed in this Section is not imposed on the
providing of targeted advertising services to the United
States or any agency or instrumentality thereof.
(g) The tax imposed in this Section is not imposed on the
providing of targeted advertising services if such services
are sold to a user-advertiser that is exempt from use tax by

SB3019 Enrolled - 7 - LRB104 20255 HLH 33706 b
operation of federal law.
Section 1-20. Determining the location of a user-consumer.
(a) The location of a user-consumer shall be determined by
the provider of targeted advertising services using the
totality of the user-consumer contact information within the
provider's possession or control, including both technical
information and nontechnical information included in the
contract for digital advertising services.
(b) There shall be a rebuttable presumption that a
user-consumer is located in this State if the user-consumer
contact information associated with a device or account on
record with or available to a provider indicates an Illinois
home address, an Illinois mailing address, or an Illinois
internet protocol address or other user-consumer data showing
"place of primary use" in Illinois as defined in the Mobile
Telecommunications Sourcing Conformity Act. The burden of
proving that a user-consumer is not located in this State is on
the provider. For administrative ease, a provider may create
reasonable categorization standards to use in analyzing
user-consumer data to determine if a user-consumer is located
in Illinois; however, its reliance on such standards does not
alleviate the provider's burden of proof.
(c) Business entities that are part of a controlled group
of corporations as defined in Section 1563(a) of the Internal
Revenue Code shall be treated as a single entity for purposes

SB3019 Enrolled - 8 - LRB104 20255 HLH 33706 b
of meeting the definition of a provider under this Act.
Section 1-25. Registration of providers of targeted
advertising services.
(a) It is unlawful for any person to engage in business as
a provider of targeted advertising services in this State on
or after January 1, 2027, without a certificate of
registration from the Department. A provider of targeted
advertising services shall register with the Department.
Application for a certificate of registration shall be made to
the Department, by electronic means, in the form and manner
prescribed by the Department and shall contain any reasonable
information the Department may require. The application shall
contain an acceptance of responsibility signed by the person
or persons who will be responsible for filing returns and
payment of the tax due under this Act. Upon receipt of the
application for a certificate of registration in proper form
and manner, the Department shall issue the applicant a
certificate of registration.
(b) Certificates of registration issued by the Department
under this Act shall be valid for a period not to exceed one
year after issuance unless sooner revoked, canceled, or
suspended as provided in this Act. A certificate of
registration shall automatically be renewed, subject to
revocation as provided by this Act, for an additional one year
from the date of its expiration unless otherwise notified by

SB3019 Enrolled - 9 - LRB104 20255 HLH 33706 b
the Department as provided in this Section.
(c) The Department may refuse to issue, reissue, or renew
a certificate of registration to any applicant for the reasons
set forth in Section 2505-380 of the Department of Revenue Law
of the Civil Administrative Code of Illinois. No certificate
of registration shall be issued to any person who is in default
to the State of Illinois for moneys due under this Act or any
other tax Act administered by the Department.
(d) Any person aggrieved by any decision of the Department
under this Section may, within 30 days after notice of such
decision, protest and request a hearing, whereupon the
Department shall give notice to such person of the time and
place fixed for such hearing and shall hold a hearing in
conformity with the provisions of this Act and then issue its
final administrative decision in the matter to such person. In
the absence of such a protest within 30 days, the Department's
decision shall become final without any further determination
being made or notice given. The term "administrative decision"
is as defined in Section 3-101 of the Code of Civil Procedure.
Section 1-30. Revocation of certificate of registration.
(a) The Department may, after notice and a hearing as
provided herein, revoke the certificate of registration of any
person who violates any of the provisions of this Act or
regulations promulgated pursuant to this Act. Before
revocation of a certificate of registration, the Department

SB3019 Enrolled - 10 - LRB104 20255 HLH 33706 b
shall, within 90 days after noncompliance and at least 7 days
prior to the date of the hearing, give the person determined to
be noncompliant notice in writing of the proposed revocation,
and on the date designated shall conduct a hearing. The lapse
of such 90-day period shall not preclude the Department from
conducting revocation proceedings at a later date if
necessary. Any hearing held under this Section shall be
conducted by the Director or by any officer or employee of the
Department designated by the Director.
(b) The Department may revoke a certificate of
registration for the reasons set forth in Section 2505-380 of
the Department of Revenue Law of the Civil Administrative Code
of Illinois.
(c) When conducting any such proceeding, the Director or
any officer or employee of the Department designated by the
Director may administer oaths, and the Department may procure
by its subpoena the attendance of witnesses and, by its
subpoena duces tecum, the production of relevant books and
papers. Any circuit court, upon application either of the
provider or of the Department, may, by order duly entered,
require the attendance of witnesses and the production of
relevant books and papers before the Department in any hearing
relating to the revocation of certificates of registration.
Upon refusal or neglect to obey the order of the court, the
court may compel obedience thereof by proceedings for
contempt.

SB3019 Enrolled - 11 - LRB104 20255 HLH 33706 b
(d) The Department may, by application to any circuit
court, obtain an injunction requiring any person who engages
in business as a provider under this Act to obtain a
certificate of registration. Upon refusal or neglect to obey
the order of the court, the court may compel obedience by
proceedings for contempt.
Section 1-35. Return and payment.
(a) Each provider of targeted advertising services shall
make a return to the Department on or before the 20th day of
each month for the preceding calendar month stating the
following:
(1) the provider's name;
(2) the address of the provider's principal place of
business and the address of the principal place of
business (if that is a different address) from which the
provider engages in the business of providing targeted
advertising services, including the location of the
provider's servers, subject to tax under this Act;
(3) the total gross receipts received by the provider
during the preceding calendar month for all targeted
advertising services provided that are subject to tax
under this Act;
(4) the amount of tax due, computed upon item (3) at
the rate stated in Section 1-15;
(5) deductions allowed by law;

SB3019 Enrolled - 12 - LRB104 20255 HLH 33706 b
(6) the signature of the provider; and
(7) such other information as the Department may
reasonably require.
(b) All returns required to be filed and payments required
to be made under this Act shall be by electronic means in the
form and manner authorized by the Department.
Any amount that is required to be shown or reported on any
return or other document under this Act shall, if such amount
is not a whole-dollar amount, be increased to the nearest
whole-dollar amount if the fractional part of a dollar is
$0.50 or more and decreased to the nearest whole-dollar amount
if the fractional part of a dollar is less than $0.50. If a
total amount of less than $1 is payable, refundable, or
creditable, such amount shall be disregarded if it is less
than $0.50 and shall be increased to $1 if it is $0.50 or more.
(c) The provider making the return provided for in this
Section shall, at the time of making such return, pay to the
Department the amount of tax imposed by this Act, less a
discount of 1.75% but not to exceed $1,000 per return period,
which is allowed to reimburse the provider for the expenses
incurred in keeping records, preparing and filing returns,
remitting the tax, and supplying data to the Department upon
request. No discount may be claimed by a provider on returns
not timely filed and for taxes not timely remitted. No
discount may be claimed by a provider for any return that is
not filed electronically. No discount may be claimed by a

SB3019 Enrolled - 13 - LRB104 20255 HLH 33706 b
provider for any payment that is not made electronically.
(d) A provider of targeted advertising services who ceases
to engage in the kind of business which makes the person
responsible for filing returns under this Act shall file a
final return under this Act with the Department not more than
one month after discontinuing such business.
(e) If any payment provided for in this Section exceeds
the provider's liabilities under this Act, as shown on an
original monthly return, the Department shall, if requested by
the provider, issue to the provider a credit memorandum no
later than 30 days after the date of the request. The credit
evidenced by such credit memorandum may be assigned by the
provider to a similar provider under this Act, in accordance
with reasonable rules and regulations to be prescribed by the
Department. If no such request is made, the provider may
credit such excess payment against tax liability subsequently
to be remitted to the Department under this Act, in accordance
with reasonable rules and regulations prescribed by the
Department. If the Department subsequently determines that all
or any part of the credit taken was not actually due to the
provider, the provider's 1.75% discount shall be reduced by
the difference between the credit taken and that actually due,
and that provider shall be liable for penalties and interest
on such difference.
(f) If a provider fails to sign a return within 30 days
after the proper notice and demand for signature by the

SB3019 Enrolled - 14 - LRB104 20255 HLH 33706 b
Department is received by the provider, the return shall be
considered valid, and any amount shown to be due on the return
shall be deemed assessed.
Section 1-40. Books and records. Every provider required
to file a return under Section 1-35 of this Act shall keep
books, records, papers, and other documents that adequately
reflect the targeted advertising services provided in this
State, including the information used in calculating the gross
receipts from providing targeted advertising services in this
State and the amount of tax due. Providers are required to
maintain records as needed to determine the location of a
user-consumer pursuant to Section 1-20 of this Act. The
Department may adopt rules that establish requirements,
including record forms and formats, for records required to be
kept and maintained by providers.
Books, records, papers, and documents that are required by
this Section to be kept shall, at all times during the usual
business hours of the day, be subject to inspection by the
Department or its duly authorized agents and employees. The
books, records, papers, and documents for any period with
respect to which the Department is authorized to issue a
notice of tax liability shall be preserved until the
expiration of that period.
Section 1-45. Deposit of proceeds from targeted

SB3019 Enrolled - 15 - LRB104 20255 HLH 33706 b
advertising services tax. The moneys received by the
Department from the tax imposed by this Act shall be deposited
into the General Revenue Fund.
Section 1-50. Penalties. Any provider who fails to file a
return, or who violates any other provision of this Act, or who
fails to keep books and records as required by this Act, or who
files a fraudulent return, or who willfully violates any rule
or regulation of the Department for the administration and
enforcement of the provisions of this Act, or any officer or
agent of a corporation or manager, member, or agent of a
limited liability company subject to this Act who signs a
fraudulent return filed on behalf of such corporation or
limited liability company, or any accountant or other agent
who knowingly enters false information on the return of any
taxpayer under this Act is guilty of a Class 3 felony.
A prosecution for any act in violation of this Section may
be commenced at any time within 5 years of the commission of
that act.
Section 1-55. Department administration and enforcement.
The Department shall have full power to administer and enforce
this Act, to collect all taxes and penalties due hereunder, to
dispose of taxes and penalties so collected in the manner
hereinafter provided, and to determine all rights to credit
memoranda, arising on account of the erroneous payment of tax

SB3019 Enrolled - 16 - LRB104 20255 HLH 33706 b
or penalty hereunder.
In the administration of, and compliance with, this Act,
the Department and persons who are subject to this Act shall
have the same rights, remedies, privileges, immunities,
powers, and duties, and be subject to the same conditions,
restrictions, limitations, penalties, and definitions of
terms, and employ the same modes of procedure, as are
prescribed in Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i,
5j, 6b, 6c, 8, 9, 10, and 11 of the Retailers' Occupation Tax
Act and all of the provisions of the Uniform Penalty and
Interest Act, which are not inconsistent with this Act, as
fully as if those provisions were set forth herein. References
in the incorporated Sections of the Retailers' Occupation Tax
Act to retailers, to sellers, or to persons engaged in the
business of selling tangible personal property mean providers
of targeted advertising services when used in this Act.
References in the incorporated Sections to sales of tangible
personal property mean targeted advertising services subject
to tax under this Act when used in this Act.
Section 1-60. Illinois Administrative Procedure Act
expressly adopted. The Illinois Administrative Procedure Act
is hereby expressly adopted and shall apply to all
administrative rules and procedures of the Department of
Revenue under this Act, except that: (1) paragraph (b) of
Section 5-10 of the Illinois Administrative Procedure Act does

SB3019 Enrolled - 17 - LRB104 20255 HLH 33706 b
not apply to final orders, decisions, and opinions of the
Department; and (2) subparagraph (a)(ii) of Section 5-10 of
the Illinois Administrative Procedure Act does not apply to
forms established by the Department for use under this
Article.
Section 1-65. Rulemaking. The Department may adopt rules
in accordance with the Illinois Administrative Procedure Act
and prescribe forms relating to the administration and
enforcement of this Act as it deems appropriate.
Section 1-70. Home rule limitation. The taxation of the
occupation of providing targeted advertising services is an
exclusive power and function of the State. A home rule unit may
not impose a tax on the occupation of providing targeted
advertising services as set out in this Act. This Section is a
denial and limitation of home rule powers and functions under
subsection (g) of Section 6 of Article VII of the Illinois
Constitution.
Section 1-900. The Counties Code is amended by changing
Section 5-1009 as follows:
(55 ILCS 5/5-1009) (from Ch. 34, par. 5-1009)
Sec. 5-1009. Limitation on home rule powers. Except as
provided in Sections 5-1006, 5-1006.5, 5-1006.8, 5-1006.9,

SB3019 Enrolled - 18 - LRB104 20255 HLH 33706 b
5-1007, and 5-1008, on and after September 1, 1990, no home
rule county has the authority to impose, pursuant to its home
rule authority, a retailers' occupation tax, service
occupation tax, use tax, sales tax, or other tax on the use,
sale, or purchase of tangible personal property based on the
gross receipts from such sales or the selling or purchase
price of said tangible personal property. Notwithstanding the
foregoing, this Section does not preempt any home rule imposed
tax such as the following: (1) a tax on alcoholic beverages,
whether based on gross receipts, volume sold, or any other
measurement; (2) a tax based on the number of units of
cigarettes or tobacco products; (3) a tax, however measured,
based on the use of a hotel or motel room or similar facility;
(4) a tax, however measured, on the sale or transfer of real
property; (5) a tax, however measured, on lease receipts; (6)
a tax on food prepared for immediate consumption and on
alcoholic beverages sold by a business which provides for on
premise consumption of said food or alcoholic beverages; or
(7) other taxes not based on the selling or purchase price or
gross receipts from the use, sale, or purchase of tangible
personal property. This Section does not preempt a home rule
county from imposing a tax, however measured, on the use, for
consideration, of a parking lot, garage, or other parking
facility.
On and after December 1, 2019, no home rule county has the
authority to impose, pursuant to its home rule authority, a

SB3019 Enrolled - 19 - LRB104 20255 HLH 33706 b
tax, however measured, on sales of aviation fuel, as defined
in Section 3 of the Retailers' Occupation Tax Act, unless the
tax revenue is expended for airport-related purposes. For
purposes of this Section, "airport-related purposes" has the
meaning ascribed in Section 6z-20.2 of the State Finance Act.
Aviation fuel shall be excluded from tax only for so long as
the revenue use requirements of 49 U.S.C. 47017(b) and 49
U.S.C. 47133 are binding on the county.
On and after the effective date of this amendatory Act of
the 104th General Assembly, no home rule county has the
authority to impose, pursuant to its home rule authority, a
tax, however measured, on sales of targeted advertising
services, as defined in Section 1-10 of the Targeted
Advertising Services Tax Act, an occupation tax, use tax,
sales tax, or other tax on the use, sale, or purchase of
targeted advertising services based on the gross receipts from
such sales or the selling or purchase price of said targeted
advertising services.
This Section is a limitation, pursuant to subsection (g)
of Section 6 of Article VII of the Illinois Constitution, on
the power of home rule units to tax. The changes made to this
Section by Public Act 101-10 are a denial and limitation of
home rule powers and functions under subsection (g) of Section
6 of Article VII of the Illinois Constitution.
(Source: P.A. 103-781, eff. 8-5-24; 104-417, eff. 8-15-25.)

SB3019 Enrolled - 20 - LRB104 20255 HLH 33706 b
Section 1-905. The Illinois Municipal Code is amended by
changing Section 8-11-6a as follows:
(65 ILCS 5/8-11-6a) (from Ch. 24, par. 8-11-6a)
Sec. 8-11-6a. Home rule municipalities; preemption of
certain taxes. Except as provided in Sections 8-11-1, 8-11-5,
8-11-6, 8-11-6b, 8-11-6c, 8-11-23, 8-11-24, and 11-74.3-6 on
and after September 1, 1990, no home rule municipality has the
authority to impose, pursuant to its home rule authority, a
retailer's occupation tax, service occupation tax, use tax,
sales tax or other tax on the use, sale or purchase of tangible
personal property based on the gross receipts from such sales
or the selling or purchase price of said tangible personal
property. Notwithstanding the foregoing, this Section does not
preempt any home rule imposed tax such as the following: (1) a
tax on alcoholic beverages, whether based on gross receipts,
volume sold or any other measurement; (2) a tax based on the
number of units of cigarettes or tobacco products (provided,
however, that a home rule municipality that has not imposed a
tax based on the number of units of cigarettes or tobacco
products before July 1, 1993, shall not impose such a tax after
that date); (3) a tax, however measured, based on the use of a
hotel or motel room or similar facility; (4) a tax, however
measured, on the sale or transfer of real property; (5) a tax,
however measured, on lease receipts; (6) a tax on food
prepared for immediate consumption and on alcoholic beverages

SB3019 Enrolled - 21 - LRB104 20255 HLH 33706 b
sold by a business which provides for on premise consumption
of said food or alcoholic beverages; or (7) other taxes not
based on the selling or purchase price or gross receipts from
the use, sale or purchase of tangible personal property. This
Section does not preempt a home rule municipality with a
population of more than 2,000,000 from imposing a tax, however
measured, on the use, for consideration, of a parking lot,
garage, or other parking facility. This Section is not
intended to affect any existing tax on food and beverages
prepared for immediate consumption on the premises where the
sale occurs, or any existing tax on alcoholic beverages, or
any existing tax imposed on the charge for renting a hotel or
motel room, which was in effect January 15, 1988, or any
extension of the effective date of such an existing tax by
ordinance of the municipality imposing the tax, which
extension is hereby authorized, in any non-home rule
municipality in which the imposition of such a tax has been
upheld by judicial determination, nor is this Section intended
to preempt the authority granted by Public Act 85-1006. On and
after December 1, 2019, no home rule municipality has the
authority to impose, pursuant to its home rule authority, a
tax, however measured, on sales of aviation fuel, as defined
in Section 3 of the Retailers' Occupation Tax Act, unless the
tax is not subject to the revenue use requirements of 49 U.S.C.
47107(b) and 49 U.S.C. 47133, or unless the tax revenue is
expended for airport-related purposes. For purposes of this

SB3019 Enrolled - 22 - LRB104 20255 HLH 33706 b
Section, "airport-related purposes" has the meaning ascribed
in Section 6z-20.2 of the State Finance Act. Aviation fuel
shall be excluded from tax only if, and for so long as, the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the municipality. On and after the
effective date of this amendatory Act of the 104th General
Assembly, no home rule municipality has the authority to
impose, pursuant to its home rule authority, a tax, however
measured, on sales of targeted advertising services, as
defined in Section 1-10 of the Targeted Advertising Services
Tax Act, an occupation tax, use tax, sales tax, or other tax on
the use, sale, or purchase of targeted advertising services
based on the gross receipts from such sales or the selling or
purchase price of said targeted advertising services. This
Section is a limitation, pursuant to subsection (g) of Section
6 of Article VII of the Illinois Constitution, on the power of
home rule units to tax. The changes made to this Section by
Public Act 101-10 are a denial and limitation of home rule
powers and functions under subsection (g) of Section 6 of
Article VII of the Illinois Constitution.
(Source: P.A. 103-781, eff. 8-5-24.)
ARTICLE 3
Section 3-5. Short title. This Article may be cited as the
Digital Asset Tax Act. References in this Article to "this

SB3019 Enrolled - 23 - LRB104 20255 HLH 33706 b
Act" mean this Article.
Section 3-15. Definitions. In this Act:
"Customer" means a person receiving digital asset business
activity from a digital asset broker for valuable
consideration.
"Department" means the Department of Revenue.
"Digital asset" has the meaning set forth in Section 1-5
of the Digital Assets and Consumer Protection Act.
"Digital asset business activity" means any single
occurrence of exchanging, transferring, or storing a digital
asset as part of a business or on behalf of a customer who has
entered into an agreement with a business for the provision of
those services.
"Digital asset broker" means a person, as defined in
Section 6045(c)(1)(D) of the Internal Revenue Code and any
regulations as the Secretary of the Treasury may prescribe,
who is engaged in the business of providing digital asset
business activity to customers in this State.
"Digital asset broker maintaining a place of business in
this State" means:
(1) Any digital asset broker having or maintaining
within this State, directly or by a subsidiary, an office,
distribution facilities, transmission facilities, sales
office, warehouse or other place of business, or any agent
or other representative operating within this State under

SB3019 Enrolled - 24 - LRB104 20255 HLH 33706 b
the authority of the digital asset broker or its
subsidiary, irrespective of whether the place of business
or agent or other representative is located here
permanently or temporarily, or whether the digital asset
broker or subsidiary is licensed to do business in this
State.
(2) Any digital asset broker who is headquartered
outside of this State and who sells digital asset business
activity to Illinois customers remotely if the digital
asset broker's gross receipts from digital asset business
activity sales to Illinois customers are $100,000 or more.
The digital asset broker shall determine on a
quarterly basis, ending on the last day of March, June,
September, and December, whether the digital asset broker
meets the threshold in this paragraph (2) for the
preceding 12-month period. If the broker meets the
threshold for a 12-month period, the broker is considered
a digital asset broker maintaining a place of business in
this State and is required to collect and remit the tax
imposed under this Act and file returns for one year. At
the end of the one-year period, the broker shall determine
whether the broker met the threshold during the preceding
12-month period. If the broker met the threshold for the
preceding 12-month period, the broker is considered a
broker maintaining a place of business in this State and
is required to collect and remit the tax imposed under

SB3019 Enrolled - 25 - LRB104 20255 HLH 33706 b
this Act and file returns for the subsequent year. If, at
the end of a one-year period, a broker that was required to
collect and remit the tax imposed under this Act
determines that the broker did not meet the threshold
during the preceding 12-month period, the broker shall
subsequently determine on a quarterly basis, ending on the
last day of March, June, September, and December, whether
the broker meets the threshold for the preceding 12-month
period.
"Exchange", when used as a verb, means to exchange, buy,
sell, trade, or convert, on behalf of a customer, either of the
following:
(1) a digital asset for fiat currency or one or more
forms of digital assets; and
(2) fiat currency for one or more forms of digital
assets.
"Exchange" does not include buying, selling, or trading
digital assets for a person's own account in a principal
capacity.
"Fiat currency" means a medium of exchange or unit of
value issued by the United States or a foreign government that
is designated as legal tender in its country of issuance.
"Person" means any natural individual, firm, partnership,
association, corporation, limited liability company, or trust;
any receiver, executor, trustee, guardian, or other
representative appointed by order of any court; or any other

SB3019 Enrolled - 26 - LRB104 20255 HLH 33706 b
entity. Unless expressly provided otherwise, the term "person"
does not include a governmental entity or a unit or
instrumentality of a government entity.
"Purchase price" means the consideration paid for the
purchase of digital asset business activity from a digital
asset broker, valued in money, whether received in money or
otherwise, including cash, gift cards, credits, and property,
and shall be determined without any deduction on account of
the cost of materials used, labor or service costs, or any
other expense whatsoever. "Purchase price" includes any and
all charges that the customer pays related to or incidental to
the receipt of digital asset business activity.
"Sale" means an agreement between a digital asset broker
and a customer for the broker to provide the customer with a
digital asset business activity for valuable consideration. If
the digital asset business activity is sold as a bundle of
separate services, each service shall constitute an individual
sale for the purposes of this Act.
"Store", "storage", and "storing", except in the phrase
"store of value", means to store, hold, or maintain custody or
control of a digital asset on behalf of a customer by a digital
asset broker.
"Transfer" means to transfer or transmit a digital asset
on behalf of a customer, including by doing any of the
following:
(1) crediting the digital asset to the account or

SB3019 Enrolled - 27 - LRB104 20255 HLH 33706 b
storage of another person;
(2) moving the digital asset from one account or
storage of a customer to another account or storage of the
same customer; and
(3) relinquishing custody or control of a digital
asset to another person.
Section 3-20. Tax imposed.
(a) Beginning January 1, 2027, a tax is imposed upon the
privilege of receiving any digital asset business activity by
a customer in this State at the rate of 0.2% of the value of
the digital asset to which the digital asset business activity
relates. It shall be the duty of the digital asset broker
making or effectuating the sale of the digital asset business
activity to collect the tax provided by this Section on each
sale.
(b) The tax imposed in this Section shall be in addition to
all other occupation or privilege taxes imposed by the State
of Illinois or by any municipal corporation or political
subdivision thereof.
(c) The tax imposed in this Section is not imposed upon the
privilege of engaging in any business in Interstate Commerce
or otherwise, which business may not, under the Constitution
and Statutes of the United States, be made the subject of
taxation by this State.
(d) The tax imposed in this Section is not imposed on the

SB3019 Enrolled - 28 - LRB104 20255 HLH 33706 b
providing of services to the United States or any agency or
instrumentality thereof.
Section 3-25. Sourcing. As used in this Act, the term "in
this State" means at a physical location within this State for
a sale occurring in person. For a sale occurring
electronically or by phone, there shall be a rebuttable
presumption that the customer requesting the sale is located
in this State if the customer's contact information associated
with a device or account on record with or available to a
digital asset broker indicates an Illinois home address, an
Illinois mailing address, or an Illinois internet protocol
address or other data showing "place of primary use" in
Illinois, as defined in the Mobile Telecommunications Sourcing
Conformity Act. The burden of proving that a customer is not
located in this State is on the digital asset broker. For
administrative ease, a digital asset broker may create
reasonable categorization standards to use in analyzing data
to determine if a customer is located in Illinois; however,
its reliance on such standards does not alleviate the digital
asset broker's burden of proof.
Section 3-30. Registration of digital asset brokers.
(a) It is unlawful for any person to engage in business as
a digital asset broker in this State on or after January 1,
2027, without a certificate of registration from the

SB3019 Enrolled - 29 - LRB104 20255 HLH 33706 b
Department. A digital asset broker shall register with the
Department. Application for a certificate of registration
shall be made to the Department, by electronic means, in the
form and manner prescribed by the Department and shall contain
any reasonable information the Department may require. The
application shall contain an acceptance of responsibility
signed by the person or persons who will be responsible for
filing returns and payment of the tax due under this Act. Upon
receipt of the application for a certificate of registration
in proper form and manner, the Department shall issue the
applicant a certificate of registration.
(b) Certificates of registration issued by the Department
under this Act shall be valid for a period not to exceed one
year after issuance unless sooner revoked, canceled, or
suspended as provided in this Act. A certificate of
registration shall automatically be renewed, subject to
revocation as provided by this Act, for an additional one year
from the date of its expiration unless otherwise notified by
the Department as provided in this Section.
(c) The Department may refuse to issue, reissue, or renew
a certificate of registration to any applicant for the reasons
set forth in Section 2505-380 of the Department of Revenue Law
of the Civil Administrative Code of Illinois. No certificate
of registration shall be issued to any person who is in default
to the State of Illinois for moneys due under this Act or any
other tax Act administered by the Department.

SB3019 Enrolled - 30 - LRB104 20255 HLH 33706 b
(d) Any person aggrieved by any decision of the Department
under this Section may, within 30 days after notice of such
decision, protest and request a hearing, whereupon the
Department shall give notice to such person of the time and
place fixed for such hearing and shall hold a hearing in
conformity with the provisions of this Act and then issue its
final administrative decision in the matter to such person. In
the absence of such a protest within 30 days, the Department's
decision shall become final without any further determination
being made or notice given. The term "administrative decision"
is as defined in Section 3-101 of the Code of Civil Procedure.
Section 3-35. Collection of tax.
(a) Any digital asset broker maintaining a place of
business in this State shall collect the tax imposed by this
Act from the customer at the rate stated in Section 3-20 for
the privilege of receiving digital asset business activity in
this State and shall remit the tax to the Department as
provided in Section 3-40 of this Act. Any such digital asset
broker shall be liable for the tax whether or not the tax has
been collected by the digital asset broker. To the extent that
a digital asset broker that is required to collect the tax
imposed by this Act has actually collected that tax, such tax
is held in trust for the benefit of the Department.
(b) All digital asset business activities provided to a
customer that are subject to tax under this Act are presumed

SB3019 Enrolled - 31 - LRB104 20255 HLH 33706 b
subject to tax collection. Digital asset brokers shall collect
the tax from customers by adding the tax to the amount of the
purchase price received from the customer for the digital
asset business activity subject to tax under this Act. The tax
imposed by the Act shall, when collected, be stated as a
distinct item separate and apart from the purchase price of
the digital asset business activity subject to tax under this
Act. However, if it is not possible to state the tax
separately, the Department may, by rule, exempt the purchase
from this requirement if customers are notified by language on
the invoice or other written notification that the tax is
included in the purchase price.
(c) Every digital asset broker shall, when collecting the
tax as provided in Section 3-20 of this Act from the customer,
give to the customer (if demanded by the customer) a receipt
for the tax in the manner and form prescribed by the
Department. The receipt shall be sufficient to relieve the
customer from further liability for the tax to which the
receipt may refer.
(d) The tax imposed by this Act shall constitute a debt of
the customer to the digital asset broker who provides such
taxable activity until paid, and, if unpaid, is recoverable at
law in the same manner as the original charge for such taxable
activity.
(e) If any digital asset broker erroneously collects tax
or collects more from the customer than the customer's

SB3019 Enrolled - 32 - LRB104 20255 HLH 33706 b
liability for the sale, the customer shall have a legal right
to claim a refund of such amount from such digital asset
broker. However, if such amount is not refunded to the
customer for any reason, the digital asset broker is liable to
pay such amount to the Department.
(f) Any person purchasing a digital asset business
activity subject to tax under this Act as to which there has
been no charge made to the customer of the tax imposed by
Section 3-20 shall make payment of the tax imposed by Section
3-20 in the form and manner provided by the Department not
later than the 20th day of the month following the month of
payment for the digital asset business activity.
Section 3-40. Return and payment.
(a) Each digital asset broker shall make a return to the
Department on or before the 20th day of each month for the
preceding calendar month stating the following:
(1) the digital asset broker's name;
(2) the address of the digital asset broker's
principal place of business;
(3) the amount of digital asset business sales made by
the digital asset broker during the preceding calendar
month;
(4) the amount of tax due, computed as set forth in
this Act;
(5) the signature of the digital asset broker; and

SB3019 Enrolled - 33 - LRB104 20255 HLH 33706 b
(6) such other information as the Department may
reasonably require.
(b) All returns required to be filed and payments required
to be made under this Act shall be by electronic means in the
form and manner authorized by the Department.
(c) Any amount that is required to be shown or reported on
any return or other document under this Act shall, if such
amount is not a whole-dollar amount, be increased to the
nearest whole-dollar amount if the fractional part of a dollar
is $0.50 or more and decreased to the nearest whole-dollar
amount if the fractional part of a dollar is less than $0.50.
If a total amount of less than $1 is payable, refundable, or
creditable, such amount shall be disregarded if it is less
than $0.50 and shall be increased to $1 if it is $0.50 or more.
(d) A digital asset broker who ceases to engage in the kind
of business which makes the person responsible for filing
returns under this Act shall file a final return under this Act
with the Department not more than one month after
discontinuing such business.
(e) If any payment provided for in this Section exceeds
the digital asset broker's liabilities under this Act, as
shown on an original monthly return, the Department shall, if
requested by the digital asset broker, issue to the digital
asset broker a credit memorandum no later than 30 days after
the date of the request. The credit evidenced by such credit
memorandum may be assigned by the digital asset broker to a

SB3019 Enrolled - 34 - LRB104 20255 HLH 33706 b
similar digital asset broker under this Act, in accordance
with reasonable rules and regulations to be prescribed by the
Department. If no such request is made, the digital asset
broker may credit such excess payment against tax liability
subsequently to be remitted to the Department under this Act,
in accordance with reasonable rules and regulations prescribed
by the Department. If the Department subsequently determines
that all or any part of the credit taken was not actually due
to the digital asset broker, that digital asset broker shall
be liable for penalties and interest on such difference.
(f) If a digital asset broker fails to sign a return within
30 days after the proper notice and demand for signature by the
Department is received by the digital asset broker, the return
shall be considered valid, and any amount shown to be due on
the return shall be deemed assessed.
Section 3-45. Books and records. Every digital asset
broker required to file a return under this Act shall keep
books, records, papers, and other documents that adequately
reflect digital asset business activity sold in this State,
including the information used in calculating the amount of
tax due. Digital asset brokers are required to maintain
records as needed to determine the location of a sale pursuant
to Section 3-25 of this Act. The Department may adopt rules
that establish requirements, including record forms and
formats, for records required to be kept and maintained by

SB3019 Enrolled - 35 - LRB104 20255 HLH 33706 b
digital asset brokers.
Books, records, papers, and documents that are required by
this Section to be kept shall, at all times during the usual
business hours of the day, be subject to inspection by the
Department or its duly authorized agents and employees. The
books, records, papers, and documents for any period with
respect to which the Department is authorized to issue a
notice of tax liability shall be preserved until the
expiration of that period.
Section 3-50. Deposits of proceeds The moneys received by
the Department from the tax imposed by this Act shall be
deposited into the General Revenue Fund.
Section 3-55. Criminal penalties. Any digital asset broker
who fails to file a return, or who violates any other provision
of this Act, or who fails to keep books and records as required
by this Act, or who files a fraudulent return, or who willfully
violates any rule or regulation of the Department for the
administration and enforcement of the provisions of this Act,
or any officer or agent of a corporation or manager, member, or
agent of a limited liability company subject to this Act who
signs a fraudulent return filed on behalf of such corporation
or limited liability company, or any accountant or other agent
who knowingly enters false information on the return of any
taxpayer under this Act is guilty of a Class 3 felony. A

SB3019 Enrolled - 36 - LRB104 20255 HLH 33706 b
prosecution for any act in violation of this Section may be
commenced at any time within 5 years of the commission of that
act.
Section 3-60. Department administration and enforcement.
The Department shall have full power to administer and enforce
this Act, to collect all taxes and penalties due hereunder, to
dispose of taxes and penalties so collected in the manner
hereinafter provided, and to determine all rights to credit
memoranda, arising on account of the erroneous payment of tax
or penalty hereunder.
In the administration of, and compliance with, this Act,
the Department and persons who are subject to this Act shall
have the same rights, remedies, privileges, immunities,
powers, and duties, and be subject to the same conditions,
restrictions, limitations, penalties, and definitions of
terms, and employ the same modes of procedure, as are
prescribed in Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i,
5j, 6b, 6c, 8, 9, 10, and 11 of the Retailers' Occupation Tax
Act and all of the provisions of the Uniform Penalty and
Interest Act, which are not inconsistent with this Act, as
fully as if those provisions were set forth herein. References
in the incorporated Sections of the Retailers' Occupation Tax
Act to retailers, to sellers, or to persons engaged in the
business of selling tangible personal property mean digital
asset brokers when used in this Act. References in the

SB3019 Enrolled - 37 - LRB104 20255 HLH 33706 b
incorporated Sections to sales of tangible personal property
mean sale of digital asset business activity subject to tax
under this Act when used in this Act.
Section 3-65. The Illinois Administrative Procedure Act.
The Illinois Administrative Procedure Act is hereby expressly
adopted and shall apply to all administrative rules and
procedures of the Department under this Act, except that: (1)
paragraph (b) of Section 5-10 of the Illinois Administrative
Procedure Act does not apply to final orders, decisions, and
opinions of the Department; and (2) subparagraph (a)(ii) of
Section 5-10 of the Illinois Administrative Procedure Act does
not apply to forms established by the Department for use under
this Article.
Section 3-70. Rulemaking. The Department may adopt rules
in accordance with the Illinois Administrative Procedure Act
and prescribe forms relating to the administration and
enforcement of this Act as it deems appropriate.
ARTICLE 5
Section 5-5. The Business Corporation Act of 1983 is
amended by changing Section 15.05 and by adding Section 15.98
as follows:

SB3019 Enrolled - 38 - LRB104 20255 HLH 33706 b
(805 ILCS 5/15.05) (from Ch. 32, par. 15.05)
Sec. 15.05. Fees, franchise taxes, and charges to be
collected by Secretary of State. The Secretary of State shall
charge and collect in accordance with the provisions of this
Act:
(a) Fees for filing documents.
(b) License fees.
(c) Franchise taxes.
(d) Miscellaneous charges.
(e) Fees for filing annual reports.
(f) Social media platform fees.
(Source: P.A. 93-59, eff. 7-1-03.)
(805 ILCS 5/15.98 new)
Sec. 15.98. Social media platform fee.
(a) Beginning January 1, 2027 and monthly thereafter
within 14 days of the start of each month, each social media
platform shall submit to the Secretary of State a report of the
average number of monthly users of the platform located in the
State of Illinois.
(b) Beginning January 1, 2027, the following fees are
imposed on social media platforms based on the number of
Illinois users from whom the social media platform collects
data within a month. The fees must be paid to the Secretary of
State no later than the 14th day of the first succeeding
calendar month:

SB3019 Enrolled - 39 - LRB104 20255 HLH 33706 b
(1) social media platforms with over 100,000 Illinois
users but not more than 500,000 Illinois users shall pay
$0.10 per month on the number of Illinois users over
100,000 but not more than 500,000;
(2) social media platforms with over 500,000 Illinois
users but not more than 1,000,000 Illinois users shall pay
$40,000, plus $0.25 per month multiplied by the number of
Illinois users over 500,000 but not more than 1,000,000;
and
(3) social media platforms with over 1,000,000
Illinois users shall pay $165,000, plus $0.50 per month
multiplied by the number of Illinois users over 1,000,000.
If a social media platform fails or refuses to pay the
monthly fee to the Secretary of State, there shall be added to
the fee an amount equal to 100% of the unpaid fee and any
penalties each month until the fee is paid.
(c) The Secretary of State shall deposit a portion of the
fees collected pursuant to this Section, in the amount of
$170,000 per month, into the Secretary of State Special
Services Fund. The Secretary of State shall deposit the
remainder of the fees collected pursuant to this Section into
the Common School Fund. The Secretary of State shall pay the
funds to the State Comptroller within 30 days after receipt of
the funds.
(d) As used in this Section:
"Consumer Price Index" means the index published by the

SB3019 Enrolled - 40 - LRB104 20255 HLH 33706 b
Bureau of Labor Statistics of the United States Department of
Labor that measures the average change in prices of goods and
services purchased by all urban consumers, United States city
average, all items, 1982-84=100.
"Social media platform" means a website or internet medium
that:
(1) permits a person to become a registered user,
establish an account, or create a profile for the purpose
of allowing users to create, share, and view
user-generated content through that account or profile;
(2) enables one or more users to generate content that
can be viewed by other users of the medium; and
(3) primarily serves as a medium for users to interact
with content generated by other users of the medium.
"Social media platform" does not include a not-for-profit
organization, as defined in the General Not For Profit
Corporation Act of 1986.
(e) On January 1, 2028 and on each January 1 thereafter,
the fees charged under this Section shall each be increased by
an amount equal to the annual unadjusted percentage increase
in the Consumer Price Index for the 12-month period ending
with the March preceding each July 1, including all previous
adjustments, rounded down to the nearest whole number.
(f) A social media platform shall not vary the cost of
access, features, services, or in-app purchases for any user
based on the geographic origin of the user's login, activity,

SB3019 Enrolled - 41 - LRB104 20255 HLH 33706 b
or account registration for the purposes of recouping the fee
under this Section. A violation of this subsection regarding
users' access to features and services constitutes an injury
to that individual. Any individual alleging a violation of
this subsection (f) by a social media platform may bring a
civil action in the circuit court. An individual protected by
this subsection shall not be required, as a condition of
service or otherwise, to accept mandatory arbitration of a
claim arising under this subsection.
(g) The Secretary of State may order a social media
platform to pay the required fees to the Secretary of State,
determine the amount of the fee required to be paid to the
Secretary of State by a social media platform, determine any
delinquency by a social media platform in the fees to be paid
to the Secretary of State and to order such delinquency be
remedied, and audit any social media platform to enforce the
provisions of this Section, including to ensure that a social
media platform has paid the required fee and any penalties or
other sums owed. This subsection may be enforced by the
Attorney General or a State's Attorney.
ARTICLE 10
Section 10-5. The Illinois Income Tax Act is amended by
changing Sections 207 and 1101 as follows:

SB3019 Enrolled - 42 - LRB104 20255 HLH 33706 b
(35 ILCS 5/207) (from Ch. 120, par. 2-207)
Sec. 207. Net Losses.
(a) If after applying all of the (i) modifications
provided for in paragraph (2) of Section 203(b), paragraph (2)
of Section 203(c) and paragraph (2) of Section 203(d) and (ii)
the allocation and apportionment provisions of Article 3 of
this Act and subsection (c) of this Section, the taxpayer's
net income results in a loss;
(1) for any taxable year ending prior to December 31,
1999, such loss shall be allowed as a carryover or
carryback deduction in the manner allowed under Section
172 of the Internal Revenue Code;
(2) for any taxable year ending on or after December
31, 1999 and prior to December 31, 2003, such loss shall be
allowed as a carryback to each of the 2 taxable years
preceding the taxable year of such loss and shall be a net
operating loss carryover to each of the 20 taxable years
following the taxable year of such loss;
(3) for any taxable year ending on or after December
31, 2003 and prior to December 31, 2021, such loss shall be
allowed as a net operating loss carryover to each of the 12
taxable years following the taxable year of such loss,
except as provided in subsection (d); and
(4) for any taxable year ending on or after December
31, 2021, and for any net loss incurred in a taxable year
prior to a taxable year ending on or after December 31,

SB3019 Enrolled - 43 - LRB104 20255 HLH 33706 b
2021 for which the statute of limitation for utilization
of such net loss has not expired, such loss shall be
allowed as a net operating loss carryover to each of the 20
taxable years following the taxable year of such loss,
except as provided in subsection (d).
(a-5) Election to relinquish carryback and order of
application of losses.
(A) For losses incurred in tax years ending prior
to December 31, 2003, the taxpayer may elect to
relinquish the entire carryback period with respect to
such loss. Such election shall be made in the form and
manner prescribed by the Department and shall be made
by the due date (including extensions of time) for
filing the taxpayer's return for the taxable year in
which such loss is incurred, and such election, once
made, shall be irrevocable.
(B) The entire amount of such loss shall be
carried to the earliest taxable year to which such
loss may be carried. The amount of such loss which
shall be carried to each of the other taxable years
shall be the excess, if any, of the amount of such loss
over the sum of the deductions for carryback or
carryover of such loss allowable for each of the prior
taxable years to which such loss may be carried.
(b) Any loss determined under subsection (a) of this
Section must be carried back or carried forward in the same

SB3019 Enrolled - 44 - LRB104 20255 HLH 33706 b
manner for purposes of subsections (a) and (b) of Section 201
of this Act as for purposes of subsections (c) and (d) of
Section 201 of this Act.
(c) Notwithstanding any other provision of this Act, for
each taxable year ending on or after December 31, 2008, for
purposes of computing the loss for the taxable year under
subsection (a) of this Section and the deduction taken into
account for the taxable year for a net operating loss
carryover under paragraphs (1), (2), and (3) of subsection (a)
of this Section, the loss and net operating loss carryover
shall be reduced in an amount equal to the reduction to the net
operating loss and net operating loss carryover to the taxable
year, respectively, required under Section 108(b)(2)(A) of the
Internal Revenue Code, multiplied by a fraction, the numerator
of which is the amount of discharge of indebtedness income
that is excluded from gross income for the taxable year (but
only if the taxable year ends on or after December 31, 2008)
under Section 108(a) of the Internal Revenue Code and that
would have been allocated and apportioned to this State under
Article 3 of this Act but for that exclusion, and the
denominator of which is the total amount of discharge of
indebtedness income excluded from gross income under Section
108(a) of the Internal Revenue Code for the taxable year. The
reduction required under this subsection (c) shall be made
after the determination of Illinois net income for the taxable
year in which the indebtedness is discharged.

SB3019 Enrolled - 45 - LRB104 20255 HLH 33706 b
(d) In the case of a corporation (other than a Subchapter S
corporation):
(1) no carryover deduction shall be allowed under this
Section for any taxable year ending after December 31,
2010 and prior to December 31, 2012;
(2) no carryover deduction shall exceed $100,000 for
any taxable year ending on or after December 31, 2012 and
prior to December 31, 2014 and for any taxable year ending
on or after December 31, 2021 and prior to December 31,
2024; and
(3) no carryover deduction shall exceed $500,000 for
any taxable year ending on or after December 31, 2024 and
prior to December 31, 2027.
(4) no carryover deduction shall exceed 15% of the
amount of net income computed under Section 202 without
regard to the deduction allowed by this Section or
$500,000, whichever is greater, for any taxable year
ending on or after December 31, 2027, and before December
31, 2028;
(5) no carryover deduction shall exceed 30% of the
amount of net income computed under Section 202 without
regard to the deduction allowed by this Section or
$500,000, whichever is greater, for any taxable year
ending on or after December 31, 2028, and before December
31, 2029;
(6) no carryover deduction shall exceed 50% of the

SB3019 Enrolled - 46 - LRB104 20255 HLH 33706 b
amount of net income computed under Section 202 without
regard to the deduction allowed by this Section or
$500,000, whichever is greater, for any taxable year
ending on or after December 31, 2029, and before December
31, 2030;
(7) no carryover deduction shall exceed 65% of the
amount of net income computed under Section 202 without
regard to the deduction allowed by this Section or
$500,000, whichever is greater, for any taxable year
ending on or after December 31, 2030 and before December
31, 2031;
(8) no carryover deduction shall exceed 80% of the
amount of net income computed under Section 202 without
regard to the deduction allowed by this Section or
$500,000, whichever is greater, for any taxable year
ending on or after December 31, 2031.
For the purposes of determining the taxable years to which
a net loss may be carried under subsection (a) of this Section,
no taxable year for which a deduction is disallowed under this
subsection, or for which one of the restrictions in this
subsection applies the deduction would exceed $100,000 or
$500,000, as applicable, if not for this subsection, shall be
counted.
(e) In the case of a residual interest holder in a real
estate mortgage investment conduit subject to Section 860E of
the Internal Revenue Code, the net loss in subsection (a)

SB3019 Enrolled - 47 - LRB104 20255 HLH 33706 b
shall be equal to:
(1) the amount computed under subsection (a), without
regard to this subsection (e), or if that amount is
positive, zero;
(2) minus an amount equal to the amount computed under
subsection (a), without regard to this subsection (e),
minus the amount that would be computed under subsection
(a) if the taxpayer's federal taxable income were computed
without regard to Section 860E of the Internal Revenue
Code and without regard to this subsection (e).
The modification in this subsection (e) is exempt from the
provisions of Section 250.
(Source: P.A. 102-16, eff. 6-17-21; 102-669, eff. 11-16-21;
103-592, eff. 6-7-24.)
(35 ILCS 5/1101) (from Ch. 120, par. 11-1101)
Sec. 1101. Lien for Tax.
(a) If any person liable to pay any tax neglects or refuses
to pay the same after demand, the amount (including any
interest, additional amount, addition to tax, or assessable
penalty, together with any costs that may accrue in addition
thereto) shall be a lien in favor of the State of Illinois upon
all property and rights to property, whether real or personal,
belonging to such person.
(b) Unless another date is specifically fixed by law, the
lien imposed by subsection (a) of this Section shall arise at

SB3019 Enrolled - 48 - LRB104 20255 HLH 33706 b
the time the assessment is made and shall continue until the
liability for the amount so assessed (or a judgment against
the taxpayer arising out of such liability) is satisfied or
becomes unenforceable by reason of lapse of time.
(c) Deficiency procedure. If the lien arises from an
assessment pursuant to a notice of deficiency, such lien shall
not attach and the notice referred to in this Section shall not
be filed until all proceedings in court for review of such
assessment have terminated or the time for the taking thereof
has expired without such proceedings being instituted. If a
late discretionary hearing has been granted pursuant to
subsection (d) of Section 908 of this Act after a lien has
attached, that lien shall remain in full force except to the
extent to which the final assessment may be reduced by a
revised final assessment following the hearing or review.
(d) Notice of lien. The lien created by assessment shall
terminate unless a notice of lien is filed, as provided in
Section 1103 hereof, within 3 years from the date all
proceedings in court for the review of such assessment have
terminated or the time for the taking thereof has expired
without such proceedings being instituted. Where the lien
results from the filing of a return without payment of the tax
or penalty shown therein to be due, the lien shall terminate
unless a notice of lien is filed within 3 years from the date
such return was filed with the Department. For the purposes of
this subsection (d), a tax return filed before the last day

SB3019 Enrolled - 49 - LRB104 20255 HLH 33706 b
prescribed by law, including any extension thereof, shall be
deemed to have been filed on such last day. The time limitation
period on the Department's right to file a notice of lien shall
not run (1) during any period of time in which the order of any
court has the effect of enjoining or restraining the
Department from filing such notice of lien, or (2) during the
term of a repayment plan that taxpayer has entered into with
the Department, as long as taxpayer remains in compliance with
the terms of the repayment plan.
(Source: P.A. 97-507, eff. 8-23-11; 98-446, eff. 8-16-13.)
ARTICLE 15
Section 15-5. The Motor Fuel Tax Law is amended by
changing Section 2 as follows:
(35 ILCS 505/2) (from Ch. 120, par. 418)
Sec. 2. A tax is imposed on the privilege of operating
motor vehicles upon the public highways and recreational-type
watercraft upon the waters of this State.
(a) Prior to August 1, 1989, the tax is imposed at the rate
of 13 cents per gallon on all motor fuel used in motor vehicles
operating on the public highways and recreational type
watercraft operating upon the waters of this State. Beginning
on August 1, 1989 and until January 1, 1990, the rate of the
tax imposed in this paragraph shall be 16 cents per gallon.

SB3019 Enrolled - 50 - LRB104 20255 HLH 33706 b
Beginning January 1, 1990 and until July 1, 2019, the rate of
tax imposed in this paragraph, including the tax on compressed
natural gas, shall be 19 cents per gallon. Beginning July 1,
2019 and until July 1, 2020, the rate of tax imposed in this
paragraph shall be 38 cents per gallon. Beginning July 1, 2020
and until July 1, 2021, the rate of tax imposed in this
paragraph shall be 38.7 cents per gallon. Beginning July 1,
2021 and until January 1, 2023, the rate of tax imposed in this
paragraph shall be 39.2 cents per gallon. On January 1, 2023,
the rate of tax imposed in this paragraph shall be increased by
an amount equal to the percentage increase, if any, in the
Consumer Price Index for the 12 months ending in September of
2022. On July 1, 2023, and on July 1 of each subsequent year,
except for the time period beginning July 1, 2026, and ending
on January 1, 2027, the rate of tax imposed in this paragraph
shall be increased by an amount equal to the percentage
increase, if any, in the Consumer Price Index for the 12 months
ending in March of the year in which the increase takes place.
The percentage increase in the Consumer Price Index shall be
calculated as follows: (1) calculate the average Consumer
Price Index for the full 12 months ending in March of the year
in which the increase takes place; (2) calculate the average
Consumer Price Index for the full 12 months ending in March of
the year immediately preceding the year in which the increase
takes place; (3) calculate the percentage increase, if any, in
the current-year average determined under item (1) over the

SB3019 Enrolled - 51 - LRB104 20255 HLH 33706 b
preceding-year average determined under item (2). The rate
shall be rounded to the nearest one-tenth of one cent.
(a-5) Beginning on July 1, 2022 and through December 31,
2022, each retailer of motor fuel shall cause the following
notice to be posted in a prominently visible place on each
retail dispensing device that is used to dispense motor fuel
in the State of Illinois: "As of July 1, 2022, the State of
Illinois has suspended the inflation adjustment to the motor
fuel tax through December 31, 2022. The price on this pump
should reflect the suspension of the tax increase." The notice
shall be printed in bold print on a sign that is no smaller
than 4 inches by 8 inches. The sign shall be clearly visible to
customers. Any retailer who fails to post or maintain a
required sign through December 31, 2022 is guilty of a petty
offense for which the fine shall be $500 per day per each
retail premises where a violation occurs.
(b) Until July 1, 2019, the tax on the privilege of
operating motor vehicles which use diesel fuel, liquefied
natural gas, or propane shall be the rate according to
paragraph (a) plus an additional 2 1/2 cents per gallon.
Beginning July 1, 2019, the tax on the privilege of operating
motor vehicles which use diesel fuel, liquefied natural gas,
or propane shall be the rate according to subsection (a) plus
an additional 7.5 cents per gallon. "Diesel fuel" is defined
as any product intended for use or offered for sale as a fuel
for engines in which the fuel is injected into the combustion

SB3019 Enrolled - 52 - LRB104 20255 HLH 33706 b
chamber and ignited by pressure without electric spark.
(c) A tax is imposed upon the privilege of engaging in the
business of selling motor fuel as a retailer or reseller on all
motor fuel used in motor vehicles operating on the public
highways and recreational type watercraft operating upon the
waters of this State: (1) at the rate of 3 cents per gallon on
motor fuel owned or possessed by such retailer or reseller at
12:01 a.m. on August 1, 1989; and (2) at the rate of 3 cents
per gallon on motor fuel owned or possessed by such retailer or
reseller at 12:01 A.M. on January 1, 1990.
Retailers and resellers who are subject to this additional
tax shall be required to inventory such motor fuel and pay this
additional tax in a manner prescribed by the Department of
Revenue.
The tax imposed in this paragraph (c) shall be in addition
to all other taxes imposed by the State of Illinois or any unit
of local government in this State.
(d) Except as provided in Section 2a, the collection of a
tax based on gallonage of gasoline used for the propulsion of
any aircraft is prohibited on and after October 1, 1979, and
the collection of a tax based on gallonage of special fuel used
for the propulsion of any aircraft is prohibited on and after
December 1, 2019.
(e) The collection of a tax, based on gallonage of all
products commonly or commercially known or sold as 1-K
kerosene, regardless of its classification or uses, is

SB3019 Enrolled - 53 - LRB104 20255 HLH 33706 b
prohibited (i) on and after July 1, 1992 until December 31,
1999, except when the 1-K kerosene is either: (1) delivered
into bulk storage facilities of a bulk user, or (2) delivered
directly into the fuel supply tanks of motor vehicles and (ii)
on and after January 1, 2000. Beginning on January 1, 2000, the
collection of a tax, based on gallonage of all products
commonly or commercially known or sold as 1-K kerosene,
regardless of its classification or uses, is prohibited except
when the 1-K kerosene is delivered directly into a storage
tank that is located at a facility that has withdrawal
facilities that are readily accessible to and are capable of
dispensing 1-K kerosene into the fuel supply tanks of motor
vehicles. For purposes of this subsection (e), a facility is
considered to have withdrawal facilities that are not "readily
accessible to and capable of dispensing 1-K kerosene into the
fuel supply tanks of motor vehicles" only if the 1-K kerosene
is delivered from: (i) a dispenser hose that is short enough so
that it will not reach the fuel supply tank of a motor vehicle
or (ii) a dispenser that is enclosed by a fence or other
physical barrier so that a vehicle cannot pull alongside the
dispenser to permit fueling.
Any person who sells or uses 1-K kerosene for use in motor
vehicles upon which the tax imposed by this Law has not been
paid shall be liable for any tax due on the sales or use of 1-K
kerosene.
As used in this Section, "Consumer Price Index" means the

SB3019 Enrolled - 54 - LRB104 20255 HLH 33706 b
index published by the Bureau of Labor Statistics of the
United States Department of Labor that measures the average
change in prices of goods and services purchased by all urban
consumers, United States city average, all items, 1982-84 =
100.
(Source: P.A. 102-700, eff. 4-19-22; 103-995, eff. 8-9-24.)
ARTICLE 25
Section 25-5. The Environmental Protection Act is amended
by changing Section 7.5 as follows:
(415 ILCS 5/7.5) (from Ch. 111 1/2, par. 1007.5)
Sec. 7.5. Filing fees.
(a) The Board shall collect filing fees as prescribed in
this Act. The fees shall be deposited in the Pollution Control
Board Fund. The filing fees shall be as follows:
Petition for site-specific regulation, $250 $75.
Petition for variance, $250 $75.
Petition for review of permit, $250 $75.
Petition to contest local government decision pursuant
to Section 40.1, $250 $75.
Petition for an adjusted standard, pursuant to Section
28.1, $250 $75.
Petition for a time-limited water quality standard,
$250 $75 per petitioner.

SB3019 Enrolled - 55 - LRB104 20255 HLH 33706 b
On July 1, 2027 and each July 1 thereafter, the filing fees
charged under this subsection shall each be increased by an
amount equal to the annual unadjusted percentage increase in
the consumer price index-u for the 12 months ending with the
March preceding each July 1, including all previous
adjustments. In this subsection, "consumer price index-u"
means the index published by the Bureau of Labor Statistics of
the United States Department of Labor that measures the
average change in prices of goods and services purchased by
all urban consumers, United States city average, all items,
1982-84=100.
(b) A person who has filed a petition for a variance from a
water quality standard and paid the filing fee set forth in
subsection (a) of this Section for that petition and whose
variance petition is thereafter converted into a petition for
a time-limited water quality standard under Section 38.5 of
this Act shall not be required to pay a separate filing fee
upon the conversion of the variance petition into a petition
for a time-limited water quality standard.
(Source: P.A. 99-937, eff. 2-24-17.)
ARTICLE 30
Section 30-5. The Illinois Coal Technology Development
Assistance Act is amended by changing Section 3 as follows:

SB3019 Enrolled - 56 - LRB104 20255 HLH 33706 b
(30 ILCS 730/3) (from Ch. 96 1/2, par. 8203)
Sec. 3. Transfers to Coal Technology Development
Assistance Fund.
(a) As soon as may be practicable after the first day of
each month, the Department of Revenue shall certify to the
Treasurer an amount equal to 1/64 of the revenue realized from
the tax imposed by the Electricity Excise Tax Law, Section 2 of
the Public Utilities Revenue Act, Section 2 of the Messages
Tax Act, and Section 2 of the Gas Revenue Tax Act, during the
preceding month. Upon receipt of the certification, the
Treasurer shall transfer the amount shown on such
certification from the General Revenue Fund to the Coal
Technology Development Assistance Fund, which is hereby
created as a special fund in the State treasury, except that no
transfer shall be made in any month in which the Fund has
reached the following balance:
(1) (Blank).
(2) (Blank).
(3) (Blank).
(4) (Blank).
(5) (Blank).
(6) Expect as otherwise provided in subsection (b),
during fiscal year 2006 and each fiscal year thereafter,
an amount equal to the sum of $10,000,000 plus additional
moneys deposited into the Coal Technology Development
Assistance Fund from the Renewable Energy Resources and

SB3019 Enrolled - 57 - LRB104 20255 HLH 33706 b
Coal Technology Development Assistance Charge under
Section 6.5 of the Renewable Energy, Energy Efficiency,
and Coal Resources Development Law of 1997.
(b) During fiscal years 2019 through 2022 only, the
Treasurer shall make no transfers from the General Revenue
Fund to the Coal Technology Development Assistance Fund.
(c) Beginning in fiscal year 2027, those amounts required
under this Section to be transferred by the Treasurer into the
Coal Technology Development Assistance Fund from the General
Revenue Fund shall instead be directly deposited into the Coal
Technology Development Assistance Fund.
(Source: P.A. 101-10, eff. 6-5-19; 101-636, eff. 6-10-20;
102-16, eff. 6-17-21.)
Section 30-10. The Illinois Income Tax Act is amended by
changing Section 510 as follows:
(35 ILCS 5/510) (from Ch. 120, par. 5-510)
Sec. 510. Determination of amounts contributed. The
Department shall determine the total amount contributed to
each of the funds under this Article 5 and shall notify the
State Comptroller and the State Treasurer of the amounts to be
transferred from the General Revenue Fund to each fund, and
upon receipt of such notification the State Treasurer and
Comptroller shall transfer the amounts. Beginning on July 1,
2026, contribution amounts required to be transferred under

SB3019 Enrolled - 58 - LRB104 20255 HLH 33706 b
this Article 5 shall be deposited directly into the funds.
(Source: P.A. 95-331, eff. 8-21-07; 95-434, eff. 8-27-07;
95-435, eff. 8-27-07; 95-940, eff. 8-29-08; 96-328, eff.
8-11-09.)
Section 30-15. The Environmental Protection Act is amended
by changing Section 55.8 as follows:
(415 ILCS 5/55.8) (from Ch. 111 1/2, par. 1055.8)
Sec. 55.8. Tire retailers.
(a) Any person selling new or used tires at retail or
offering new or used tires for retail sale in this State shall:
(1) beginning on June 20, 2003 (the effective date of
Public Act 93-32) and through June 30, 2026, collect from
retail customers a fee of $2 per new or used tire sold and
delivered in this State, to be paid to the Department of
Revenue and deposited into the Used Tire Management Fund,
less a collection allowance of 10 cents per tire to be
retained by the retail seller and a collection allowance
of 10 cents per tire to be retained by the Department of
Revenue and paid into the General Revenue Fund; the
collection allowance for retail sellers, however, shall be
allowed only if the return is filed timely and in the
manner required by this Title XIV and only for the amount
that is paid timely in accordance with this Title XIV;
(1.5) beginning on July 1, 2003 and through June 30,

SB3019 Enrolled - 59 - LRB104 20255 HLH 33706 b
2026, collect from retail customers an additional 50 cents
per new or used tire sold and delivered in this State; the
money collected from this fee shall be deposited into the
Emergency Public Health Fund;
(1.6) beginning on July 1, 2026, collect from retail
customers a fee of $2.50 per new or used tire sold and
delivered in this State, to be paid to the Department of
Revenue, less a collection allowance of $0.10 per tire to
be retained by the retail seller; the collection
allowance, however, shall be allowed only if the return is
filed timely and in the manner required by this Title XIV
and only for the amount that is paid timely in accordance
with this Title XIV; the money collected from this fee
shall be deposited as follows:
(i) 4% into the General Revenue Fund;
(ii) 75% into the Used Tire Management Fund; and
(iii) 21% into the Emergency Public Health Fund
(2) accept for recycling used tires from customers, at
the point of transfer, in a quantity equal to the number of
new tires purchased; and
(3) post in a conspicuous place a written notice at
least 8.5 by 11 inches in size that includes the universal
recycling symbol and the following statements: "DO NOT put
used tires in the trash."; "Recycle your used tires."; and
"State law requires us to accept used tires for recycling,
in exchange for new tires purchased.".

SB3019 Enrolled - 60 - LRB104 20255 HLH 33706 b
(b) A person who accepts used tires for recycling under
subsection (a) shall not allow the tires to accumulate for
periods of more than 90 days.
(c) The requirements of subsection (a) of this Section do
not apply to mail order sales nor shall the retail sale of a
motor vehicle be considered to be the sale of tires at retail
or offering of tires for retail sale. Instead of filing
returns, retailers of tires may remit the tire user fee to
their suppliers of tires if the supplier of tires is a
registered retailer of tires and agrees or otherwise arranges
to collect and remit the tire fee to the Department of Revenue,
notwithstanding the fact that the sale of the tire is a sale
for resale and not a sale at retail. A tire supplier who enters
into such an arrangement with a tire retailer shall be liable
for the tax on all tires sold to the tire retailer and must (i)
provide the tire retailer with a receipt that separately
reflects the tire tax collected from the retailer on each
transaction and (ii) accept used tires for recycling from the
retailer's customers. The tire supplier shall be entitled to
the collection allowance of 10 cents per tire, but only if the
return is filed timely and only for the amount that is paid
timely in accordance with this Title XIV.
The retailer of the tires must maintain in its books and
records evidence that the appropriate fee was paid to the tire
supplier and that the tire supplier has agreed to remit the fee
to the Department of Revenue for each tire sold by the

SB3019 Enrolled - 61 - LRB104 20255 HLH 33706 b
retailer. Otherwise, the tire retailer shall be directly
liable for the fee on all tires sold at retail. Tire retailers
paying the fee to their suppliers are not entitled to the
collection allowance of 10 cents per tire. The collection
allowance for suppliers, however, shall be allowed only if the
return is filed timely and in the manner required by this Title
XIV and only for the amount that is paid timely in accordance
with this Title XIV.
(d) The requirements of subsection (a) of this Section
shall apply exclusively to tires to be used for vehicles
defined in Section 1-217 of the Illinois Vehicle Code,
aircraft tires, special mobile equipment, and implements of
husbandry.
(e) The requirements of paragraph (1) of subsection (a) do
not apply to the sale of reprocessed tires. For purposes of
this Section, "reprocessed tire" means a used tire that has
been recapped, retreaded, or regrooved and that has not been
placed on a vehicle wheel rim.
(Source: P.A. 100-303, eff. 8-24-17.)
ARTICLE 35
Section 35-5. The Hotel Operators' Occupation Tax Act is
amended by changing Sections 2, 3, 3-2, 3-3, and 6 as follows:
(35 ILCS 145/2) (from Ch. 120, par. 481b.32)

SB3019 Enrolled - 62 - LRB104 20255 HLH 33706 b
Sec. 2. Definitions. As used in this Act, unless the
context otherwise requires:
(1) "Hotel" means any building or buildings in which the
public may, for a consideration, obtain living quarters,
sleeping or housekeeping accommodations. The term includes,
but is not limited to, inns, motels, tourist homes or courts,
lodging houses, rooming houses and apartment houses, retreat
centers, conference centers, hunting lodges, and short-term
rentals.
(2) "Operator" means any person engaged in the business of
renting, leasing, or letting rooms in a hotel.
(3) "Occupancy" means the use or possession, or the right
to the use or possession, of any room or rooms in a hotel for
any purpose, or the right to the use or possession of the
furnishings or to the services and accommodations accompanying
the use and possession of the room or rooms.
(4) "Room" or "rooms" means any living quarters, sleeping
or housekeeping accommodations.
(5) "Permanent resident" means any person who occupied or
has the right to occupy any room or rooms, regardless of
whether or not it is the same room or rooms, in a hotel for at
least 30 consecutive days.
(6) "Rent" or "rental" means the consideration received
for occupancy, valued in money, whether received in money or
otherwise, including all receipts, cash, credits, and property
or services of any kind or nature. "Rent" or "rental" includes

SB3019 Enrolled - 63 - LRB104 20255 HLH 33706 b
any fee, charge, or commission received from a guest by a
re-renter of hotel rooms specifically in connection with the
re-rental of hotel rooms.
(7) "Department" means the Department of Revenue.
(8) "Person" means any natural individual, firm,
partnership, association, joint stock company, joint
adventure, public or private corporation, limited liability
company, or a receiver, executor, trustee, guardian, or other
representative appointed by order of any court.
(9) "Re-renter of hotel rooms" means a person who is not
employed by the hotel operator but who, either directly or
indirectly, through agreements or arrangements with third
parties, collects or processes the payment of rent for a hotel
room located in this State and (i) obtains the right or
authority to grant control of, access to, or occupancy of a
hotel room in this State to a guest of the hotel or (ii)
facilitates the booking of a hotel room located in this State.
A person who obtains those rights or authorities is not
considered a re-renter of a hotel room if the person operates
under a shared hotel brand with the operator.
(10) "Hosting platform" or "platform" means a person who
provides an online application, software, website, or system
through which a short-term rental located in this State is
advertised or held out to the public as available to rent for
occupancy. For purposes of this definition, "short-term
rental" means an owner-occupied, tenant-occupied, or

SB3019 Enrolled - 64 - LRB104 20255 HLH 33706 b
non-owner-occupied dwelling, including, but not limited to, an
apartment, house, cottage, or condominium, located in this
State, where: (i) at least one room in the dwelling is rented
to an occupant for a period of less than 30 consecutive days;
and (ii) all accommodations are reserved in advance; provided,
however, that a dwelling shall be considered a single room if
rented as such.
(11) "Shared hotel brand" means an identifying trademark
that a hotel operator is expressly licensed to operate under
in accordance with the terms of a hotel franchise or
management agreement.
(12) "Hotel marketplace" means a physical or electronic
place, forum, platform, application, or other method by which
marketplace hotel operators rent, lease, or let or offer to
rent, lease, or let rooms in hotels.
(13) "Hotel marketplace facilitator" means a person who,
pursuant to agreements with unrelated third-party marketplace
hotel operators, directly or indirectly through one or more
affiliates, facilitates the renting, leasing, or letting of
rooms in hotels by unrelated third-party marketplace hotel
operators by:
(A) listing or advertising for rent, lease, or letting
by marketplace hotel operators in a hotel marketplace,
hotel rooms, the renting, leasing, or letting of which is
subject to tax under this Act; and
(B) either directly or indirectly, through agreements

SB3019 Enrolled - 65 - LRB104 20255 HLH 33706 b
or arrangements with third parties, collecting payment
from customers and transmitting those payments to the
marketplace hotel operator regardless of whether the hotel
marketplace facilitator receives compensation or other
consideration in exchange for its services.
Beginning July 1, 2026, "hotel marketplace facilitator"
includes re-renters of hotel rooms and hosting platforms for
short-term rentals who otherwise meet the definition of "hotel
marketplace facilitator" set forth in this item (13).
(14) "Marketplace hotel operator" means a person who
rents, leases, or lets rooms in a hotel through a hotel
marketplace operated by an unrelated third-party hotel
marketplace facilitator.
(Source: P.A. 103-592, eff. 7-1-24; 104-6, eff. 7-1-25;
104-417, eff. 8-15-25.)
(35 ILCS 145/3) (from Ch. 120, par. 481b.33)
Sec. 3. Rate; exemptions.
(a) A tax is imposed upon hotel operators at the rate of 5%
of 94% of the gross rental receipts from engaging in business
as a hotel operator, excluding, however, from gross rental
receipts, the proceeds of renting, leasing or letting hotel
rooms to permanent residents of a hotel and proceeds from the
tax imposed under subsection (c) of Section 13 of the
Metropolitan Pier and Exposition Authority Act.
(b) There shall be imposed an additional tax upon hotel

SB3019 Enrolled - 66 - LRB104 20255 HLH 33706 b
operators at the rate of 1% of 94% of the gross rental receipts
received by the hotel operator from engaging in business as a
hotel operator, excluding, however, from gross rental
receipts, the proceeds of such renting, leasing or letting to
permanent residents of that hotel and proceeds from the tax
imposed under subsection (c) of Section 13 of the Metropolitan
Pier and Exposition Authority Act.
(b-5) Beginning on July 1, 2024 and through June 30, 2026,
if the renting, leasing, or letting of a hotel room is done
through a re-renter of hotel rooms, then, subject to the
provisions of Sections 3-2 and 3-3, the re-renter is the hotel
operator for the purposes of the taxes under subsections (a)
and (b). If the re-renter is headquartered outside of this
State and has no presence in this State other than its business
as a re-renter, conducted remotely, then, subject to the
provisions of Sections 3-2 and 3-3, such re-renter is the
hotel operator for the purposes of the taxes under subsections
(a) and (b) if it meets one of the following thresholds:
(1) the cumulative gross receipts from rentals in
Illinois by the re-renter of hotel rooms are $100,000 or
more; or
(2) the re-renter of hotel rooms cumulatively enters
into 200 or more separate transactions for rentals in
Illinois.
A re-renter of hotel rooms who is headquartered outside of
this State and has no presence in this State other than its

SB3019 Enrolled - 67 - LRB104 20255 HLH 33706 b
business as a re-renter, conducted remotely, shall determine
on a quarterly basis, ending on the last day of March, June,
September, and December, whether he or she meets the threshold
of either paragraph (1) or (2) of this subsection (b-5) for the
preceding 12-month period. If such re-renter of hotel rooms
meets the threshold of either paragraph (1) or (2) for a
12-month period, he or she is subject to tax under this Act and
is required to remit the tax imposed under this Act and file
returns for the 12-month period beginning on the first day of
the next month after he or she determines that he or she meets
the threshold of paragraph (1) or (2). At the end of that
12-month period, such re-renter of hotel rooms shall determine
whether he or she continued to meet the threshold of either
paragraph (1) or (2) during the preceding 12-month period. If
he or she met the threshold in either paragraph (1) or (2) for
the preceding 12-month period, he or she is a hotel operator in
this State and is required to remit the tax imposed under this
Act and file returns for the subsequent 12-month period. If,
at the end of a 12-month period during which such re-renter is
required to remit the tax imposed under this Act, the
re-renter determines that he or she did not meet the threshold
in either paragraph (1) or (2) during the preceding 12-month
period, he or she shall subsequently determine on a quarterly
basis, ending on the last day of March, June, September, and
December, whether he or she meets the threshold of either
paragraph (1) or (2) for the preceding 12-month period.

SB3019 Enrolled - 68 - LRB104 20255 HLH 33706 b
(b-10) Beginning July 1, 2026, if the renting, leasing, or
letting of a hotel room is done through a hotel marketplace
facilitator that has met the tax remittance threshold under
this subsection (b-10), then the hotel marketplace facilitator
is the hotel operator for the purposes of the taxes under this
Act. A hotel marketplace facilitator is engaged in the
business of renting, leasing, or letting rooms in a hotel in
Illinois and meets the tax remittance threshold for purposes
of this Act if, during the previous 12-month period, the
cumulative gross rental receipts from renting, leasing, or
letting rooms in Illinois hotels on its own behalf or on behalf
of marketplace hotel operators to guests equals $100,000 or
more.
A hotel marketplace facilitator that meets the tax
remittance threshold of this subsection is required to remit
the applicable State hotel operators' occupation taxes under
this Act and local hotel operators' occupation taxes
administered by the Department on all rentals, leases, or
lettings of Illinois hotel rooms made by the hotel marketplace
facilitator or facilitated for marketplace hotel operators to
guests. A hotel marketplace facilitator who meets the tax
remittance threshold and rents, leases, or lets Illinois hotel
rooms to guests is subject to all applicable procedures and
requirements of this Act.
A hotel marketplace facilitator shall determine on a
quarterly basis, ending on the last day of March, June,

SB3019 Enrolled - 69 - LRB104 20255 HLH 33706 b
September, and December, whether it meets the tax remittance
threshold in this subsection (b-10) for the preceding 12-month
period. If the hotel marketplace facilitator meets the tax
remittance threshold for a 12-month period, then it is subject
to tax under this Act and is required to remit the tax imposed
under this Act and all hotel operators' occupation tax imposed
by local taxing jurisdictions in Illinois, provided that those
local taxes are administered by the Department, and to file
all applicable returns for one year. At the end of that
one-year period, the hotel marketplace facilitator shall
determine whether it met the tax remittance threshold for the
preceding 12-month period. If the hotel marketplace
facilitator met the tax remittance threshold for the preceding
12-month period, then it is subject to the tax under this Act
and is required to continue to collect and remit all
applicable State and local hotel operators' occupation taxes
and file returns for the subsequent year. If, at the end of a
one-year period, a hotel marketplace facilitator that was
required to collect and remit the tax imposed under this Act
determines that it did not meet the tax remittance threshold
during the preceding 12-month period, then the hotel
marketplace facilitator shall subsequently determine on a
quarterly basis, ending on the last day of March, June,
September, and December, whether it meets the tax remittance
threshold for the preceding 12-month period.
A hotel marketplace facilitator shall be entitled to any

SB3019 Enrolled - 70 - LRB104 20255 HLH 33706 b
credits, deductions, or adjustments to rental receipts
otherwise provided to the marketplace hotel operator, in
addition to any such adjustments provided directly to the
hotel marketplace facilitator. This includes, but is not
limited to, adjustments such as discounts, coupons, and
rebates. In addition, a hotel marketplace facilitator is
entitled to the discount provided in Section 6 of this Act on
all hotel marketplace rentals, leases, or lettings, and the
marketplace hotel operator shall not include rentals, leases,
or lettings made through a hotel marketplace facilitator when
computing any discount on remaining rentals, leases, or
lettings. Hotel marketplace facilitators shall report and
remit the applicable State and local hotel operators'
occupation taxes on leases, rentals, or lettings facilitated
for marketplace hotel operators separately from any hotel
operators' occupation tax on taxable rentals, leases, or
lettings made directly by the hotel marketplace facilitator or
its affiliates.
The hotel marketplace facilitator is liable for the
remittance of all applicable State hotel operators' occupation
taxes under this Act and local hotel operators' occupation
taxes administered by the Department on rentals, leases, or
lettings through the hotel marketplace and is subject to audit
on all of those rentals, leases, or lettings. The Department
shall not audit marketplace hotel operators for their
marketplace rentals, leases, or lettings if the hotel

SB3019 Enrolled - 71 - LRB104 20255 HLH 33706 b
marketplace facilitator remitted the applicable State and
local hotel operators' occupation taxes unless the hotel
marketplace facilitator seeks relief as a result of incorrect
information provided to the hotel marketplace facilitator by a
marketplace hotel operator as set forth in this Section. The
hotel marketplace facilitator shall not be held liable for tax
on any rentals, leases, or lettings made by a marketplace
hotel operator that take place outside of the hotel
marketplace and that are not a part of any agreement between a
hotel marketplace facilitator and a marketplace hotel
operator. In addition, hotel marketplace facilitators shall
not be held liable to State and local governments of Illinois
for having charged and remitted an incorrect amount of State
and local hotel operators' occupation tax if, at the time of
the rentals, leases, or lettings, the tax is computed based on
erroneous data provided by the State on tax rates, boundaries,
or taxing jurisdictions or incorrect information provided to
the hotel marketplace facilitator by the marketplace hotel
operator.
(b-15) A hotel marketplace facilitator shall:
(1) provide notice to each marketplace hotel operator
at the time of the agreement between the hotel marketplace
facilitator and marketplace hotel operator that the hotel
marketplace facilitator assumes the rights and duties of a
hotel operator under this Act with respect to rentals,
leases, or lettings made by the marketplace hotel operator

SB3019 Enrolled - 72 - LRB104 20255 HLH 33706 b
through the hotel marketplace;
(2) certify, upon request, to the marketplace hotel
operator that the hotel marketplace facilitator assumes
the rights and duties of a hotel operator under this Act
with respect to rentals, leases, or lettings made by the
marketplace hotel operator through the hotel marketplace;
and
(3) remit taxes imposed by this Act as required by
this Act for all rentals, leases, and lettings made
through the hotel marketplace.
(b-20) For any rentals, leases, and lettings made through
a hotel marketplace involving 2 or more parties that meet the
definition of hotel marketplace facilitator, nothing in this
Section shall prohibit those parties from making an agreement
regarding which party shall be responsible for collecting and
remitting taxes imposed by this Act, so long as the party so
responsible is registered with the State for purposes of
remitting the taxes imposed by this Act. If the parties enter
into an agreement described in this subsection, the party that
agrees to collect and remit the taxes imposed by this Act shall
be the sole party liable for the taxes imposed by this Act, and
the other parties to the agreement are not liable for the tax.
Any party subject to such an agreement must keep a copy of the
agreement in its books and records and provide a copy to the
Department upon request.
(b-25) A marketplace hotel operator shall retain books and

SB3019 Enrolled - 73 - LRB104 20255 HLH 33706 b
records, including certificates provided by the hotel
marketplace facilitator under paragraph (2) of subsection
(b-15), for all rentals, leases, and lettings made through a
hotel marketplace in accordance with the requirements of this
Act.
(b-30) A hotel marketplace facilitator is subject to audit
on all hotel marketplace rentals, leases, and lettings for
which it is the hotel operator but shall not be liable for tax
or subject to audit on rentals, leases, or lettings made by
marketplace hotel operators outside of the hotel marketplace.
(b-35) Nothing in this Section shall allow the Department
to collect hotel operators' occupation taxes from both the
hotel marketplace facilitator and marketplace hotel operator
on the same transaction.
(c) No funds received pursuant to this Act shall be used to
advertise for or otherwise promote new competition in the
hotel business.
(d) However, such tax is not imposed upon the privilege of
engaging in any business in Interstate Commerce or otherwise,
which business may not, under the Constitution and Statutes of
the United States, be made the subject of taxation by this
State. In addition, the tax is not imposed upon gross rental
receipts for which the hotel operator is prohibited from
obtaining reimbursement for the tax from the customer by
reason of a federal treaty.
(d-5) On and after July 1, 2017, the tax imposed by this

SB3019 Enrolled - 74 - LRB104 20255 HLH 33706 b
Act shall not apply to gross rental receipts received by an
entity that is organized and operated exclusively for
religious purposes and possesses an active Exemption
Identification Number issued by the Department pursuant to the
Retailers' Occupation Tax Act when acting as a hotel operator
renting, leasing, or letting rooms:
(1) in furtherance of the purposes for which it is
organized; or
(2) to entities that (i) are organized and operated
exclusively for religious purposes, (ii) possess an active
Exemption Identification Number issued by the Department
pursuant to the Retailers' Occupation Tax Act, and (iii)
rent the rooms in furtherance of the purposes for which
they are organized.
No gross rental receipts are exempt under paragraph (2) of
this subsection (d-5) unless the hotel operator obtains the
active Exemption Identification Number from the exclusively
religious entity to whom it is renting and maintains that
number in its books and records. Gross rental receipts from
all rentals other than those described in items (1) or (2) of
this subsection (d-5) are subject to the tax imposed by this
Act unless otherwise exempt under this Act.
This subsection (d-5) is exempt from the sunset provisions
of Section 3-5 of this Act.
(d-10) On and after July 1, 2023, the tax imposed by this
Act shall not apply to gross rental receipts received from the

SB3019 Enrolled - 75 - LRB104 20255 HLH 33706 b
renting, leasing, or letting of rooms to an entity that is
organized and operated exclusively by an organization
chartered by the United States Congress for the purpose of
providing disaster relief and that possesses an active
Exemption Identification Number issued by the Department
pursuant to the Retailers' Occupation Tax Act if the renting,
leasing, or letting of the rooms is in furtherance of the
purposes for which the exempt organization is organized. This
subsection (d-10) is exempt from the sunset provisions of
Section 3-5 of this Act.
(e) Persons subject to the tax imposed by this Act may
reimburse themselves for their tax liability under this Act by
separately stating such tax as an additional charge, which
charge may be stated in combination, in a single amount, with
any tax imposed pursuant to Sections 8-3-13 and 8-3-14 of the
Illinois Municipal Code, and Section 25.05-10 of "An Act to
revise the law in relation to counties".
(f) If any hotel operator collects an amount (however
designated) which purports to reimburse such operator for
hotel operators' occupation tax liability measured by receipts
which are not subject to hotel operators' occupation tax, or
if any hotel operator, in collecting an amount (however
designated) which purports to reimburse such operator for
hotel operators' occupation tax liability measured by receipts
which are subject to tax under this Act, collects more from the
guest or, until July 1, 2026, from the re-renter than the

SB3019 Enrolled - 76 - LRB104 20255 HLH 33706 b
operators' hotel operators' occupation tax liability in the
transaction is, the guest or re-renter, as applicable, shall
have a legal right to claim a refund of such amount from such
operator. However, if such amount is not refunded to the guest
or re-renter, as applicable, for any reason, the hotel
operator is liable to pay such amount to the Department.
(Source: P.A. 103-9, eff. 6-7-23; 103-592, eff. 7-1-24.)
(35 ILCS 145/3-2)
Sec. 3-2. No resale exemption for transactions prior to
July 1, 2026; hotel marketplace facilitators subject to tax
beginning July 1, 2026 tax incurred by re-renters of hotel
rooms. Until July 1, 2026, a A hotel operator who rents,
leases, or lets rooms subject to tax under this Act through to
a re-renter of hotel rooms incurs the tax under this Act on the
gross rental receipts it receives from that re-renter of hotel
rooms and cannot claim any resale exemption. In such
situations, the re-renter of hotel rooms incurs tax under this
Act on its gross rental receipts as provided in Section 3 of
this Act, subject to a credit as provided in Section 3-3 for
any reimbursement of tax paid to the hotel operator under
subsection (e) of Section 3 of this Act. Beginning July 1,
2026, a hotel operator who rents, leases, or lets rooms
subject to tax under this Act through a re-renter of hotel
rooms, a hosting platform for short-term rentals, or through
any other person who meets the definition of a hotel

SB3019 Enrolled - 77 - LRB104 20255 HLH 33706 b
marketplace facilitator and who meets the tax remittance
threshold under this Act does not incur the tax under this Act.
Instead, the hotel marketplace facilitator incurs the tax
under this Act in accordance with the provisions of Section 3.
(Source: P.A. 103-592, eff. 7-1-24.)
(35 ILCS 145/3-3)
Sec. 3-3. Re-renter of hotel rooms; credit for tax
reimbursement. For transactions prior to July 1, 2026, a A
re-renter of hotel rooms may take a credit against the tax it
incurs on the rental of a hotel room under this Act for the
amount it paid under subsection (e) of Section 3 of this Act to
a hotel operator as reimbursement for the tax incurred under
this Act for the rental of that room for the purposes of
re-rental.
(Source: P.A. 103-592, eff. 7-1-24.)
(35 ILCS 145/6) (from Ch. 120, par. 481b.36)
Sec. 6. Returns; allocation of proceeds.
(a) Except as provided hereinafter in this Section, on or
before the last day of each calendar month, every person
engaged as a hotel operator in this State during the preceding
calendar month shall file a return with the Department,
stating:
1. the name of the operator;
2. the operator's his residence address and the

SB3019 Enrolled - 78 - LRB104 20255 HLH 33706 b
address of the operator's his principal place of business
and the address of the principal place of business (if
that is a different address) from which he engages in
business as a hotel operator in this State (including, if
required by the Department, the address of each hotel from
which rental receipts were received);
3. total amount of rental receipts received by the
operator him during the preceding calendar month from
engaging in business as a hotel operator during such
preceding calendar month;
4. total amount of rental receipts received by the
operator him during the preceding calendar month from
renting, leasing or letting rooms to permanent residents
during such preceding calendar month;
5. total amount of other exclusions from gross rental
receipts allowed by this Act;
6. gross rental receipts which were received by the
operator him during the preceding calendar month and upon
the basis of which the tax is imposed;
7. the amount of tax due;
8. for transactions prior to July 1, 2026, credit for
any reimbursement of tax paid by a re-renter of hotel
rooms to hotel operators for rentals purchased for
re-rental, as provided in Section 3-3 of this Act;
9. such other reasonable information as the Department
may require.

SB3019 Enrolled - 79 - LRB104 20255 HLH 33706 b
If the operator's average monthly tax liability to the
Department does not exceed $200, the Department may authorize
the operator's his returns to be filed on a quarter annual
basis, with the return for January, February and March of a
given year being due by April 30 of such year; with the return
for April, May and June of a given year being due by July 31 of
such year; with the return for July, August and September of a
given year being due by October 31 of such year, and with the
return for October, November and December of a given year
being due by January 31 of the following year.
If the operator's average monthly tax liability to the
Department does not exceed $50, the Department may authorize
the operator's his returns to be filed on an annual basis, with
the return for a given year being due by January 31 of the
following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act concerning
the time within which an operator may file the operator's his
return, in the case of any operator who ceases to engage in a
kind of business which makes the operator him responsible for
filing returns under this Act, such operator shall file a
final return under this Act with the Department not more than
one month after discontinuing such business.
Where the same person has more than one business

SB3019 Enrolled - 80 - LRB104 20255 HLH 33706 b
registered with the Department under separate registrations
under this Act, such person shall not file each return that is
due as a single return covering all such registered
businesses, but shall file separate returns for each such
registered business.
In the operator's his return, the operator shall determine
the value of any consideration other than money received by
the operator him in connection with engaging in business as a
hotel operator and the operator he shall include such value in
the operator's his return. Such determination shall be subject
to review and revision by the Department in the manner
hereinafter provided for the correction of returns.
Where the operator is a corporation, the return filed on
behalf of such corporation shall be signed by the president,
vice-president, secretary or treasurer or by the properly
accredited agent of such corporation.
The person filing the return herein provided for shall, at
the time of filing such return, pay to the Department the
amount of tax herein imposed. The operator filing the return
under this Section shall, at the time of filing such return,
pay to the Department the amount of tax imposed by this Act
less a discount of 2.1% or $25 per calendar year, whichever is
greater, which is allowed to reimburse the operator for the
expenses incurred in keeping records, preparing and filing
returns, remitting the tax and supplying data to the
Department on request.

SB3019 Enrolled - 81 - LRB104 20255 HLH 33706 b
If any payment provided for in this Section exceeds the
operator's liabilities under this Act, as shown on an original
return, the Department may authorize the operator to credit
such excess payment against liability subsequently to be
remitted to the Department under this Act, in accordance with
reasonable rules adopted by the Department. If the Department
subsequently determines that all or any part of the credit
taken was not actually due to the operator, the operator's
discount shall be reduced by an amount equal to the difference
between the discount as applied to the credit taken and that
actually due, and that operator shall be liable for penalties
and interest on such difference.
(b) Until July 1, 2024, the Department shall deposit the
total net revenue realized from the tax imposed under this Act
as provided in this subsection (b). Beginning on July 1, 2024,
the Department shall deposit the total net revenue realized
from the tax imposed under this Act as provided in subsection
(c).
There shall be deposited into the Build Illinois Fund in
the State treasury for each State fiscal year 40% of the amount
of total net revenue from the tax imposed by subsection (a) of
Section 3. Of the remaining 60%: (i) $5,000,000 shall be
deposited into the Illinois Sports Facilities Fund and
credited to the Subsidy Account each fiscal year by making
monthly deposits in the amount of 1/8 of $5,000,000 plus
cumulative deficiencies in such deposits for prior months, and

SB3019 Enrolled - 82 - LRB104 20255 HLH 33706 b
(ii) an amount equal to the then applicable Advance Amount, as
defined in subsection (d), shall be deposited into the
Illinois Sports Facilities Fund and credited to the Advance
Account each fiscal year by making monthly deposits in the
amount of 1/8 of the then applicable Advance Amount plus any
cumulative deficiencies in such deposits for prior months.
(The deposits of the then applicable Advance Amount during
each fiscal year shall be treated as advances of funds to the
Illinois Sports Facilities Authority for its corporate
purposes to the extent paid to the Authority or its trustee and
shall be repaid into the General Revenue Fund in the State
treasury by the State Treasurer on behalf of the Authority
pursuant to Section 19 of the Illinois Sports Facilities
Authority Act, as amended. If in any fiscal year the full
amount of the then applicable Advance Amount is not repaid
into the General Revenue Fund, then the deficiency shall be
paid from the amount in the Local Government Distributive Fund
that would otherwise be allocated to the City of Chicago under
the State Revenue Sharing Act.)
Of the remaining 60% of the amount of total net revenue
beginning on August 1, 2011 through June 30, 2023, from the tax
imposed by subsection (a) of Section 3 after all required
deposits into the Illinois Sports Facilities Fund, an amount
equal to 8% of the net revenue realized from this Act during
the preceding month shall be deposited as follows: 18% of such
amount shall be deposited into the Chicago Travel Industry

SB3019 Enrolled - 83 - LRB104 20255 HLH 33706 b
Promotion Fund for the purposes described in subsection (n) of
Section 5 of the Metropolitan Pier and Exposition Authority
Act and the remaining 82% of such amount shall be deposited
into the Local Tourism Fund each month for purposes authorized
by Section 605-705 of the Department of Commerce and Economic
Opportunity Law. Beginning on August 1, 2011 and through June
30, 2023, an amount equal to 4.5% of the net revenue realized
from this Act during the preceding month shall be deposited as
follows: 55% of such amount shall be deposited into the
Chicago Travel Industry Promotion Fund for the purposes
described in subsection (n) of Section 5 of the Metropolitan
Pier and Exposition Authority Act and the remaining 45% of
such amount deposited into the International Tourism Fund for
the purposes authorized in Section 605-707 of the Department
of Commerce and Economic Opportunity Law.
Beginning on July 1, 2023 and until July 1, 2024, of the
remaining 60% of the amount of total net revenue realized from
the tax imposed under subsection (a) of Section 3, after all
required deposits into the Illinois Sports Facilities Fund:
(1) an amount equal to 8% of the net revenue realized
under this Act for the preceding month shall be deposited
as follows: 82% to the Local Tourism Fund and 18% to the
Chicago Travel Industry Promotion Fund; and
(2) an amount equal to 4.5% of the net revenue
realized under this Act for the preceding month shall be
deposited as follows: 55% to the Chicago Travel Industry

SB3019 Enrolled - 84 - LRB104 20255 HLH 33706 b
Promotion Fund and 45% to the International Tourism Fund.
After making all these deposits, any remaining net revenue
realized from the tax imposed under subsection (a) of Section
3 shall be deposited into the Tourism Promotion Fund in the
State treasury. All moneys received by the Department from the
additional tax imposed under subsection (b) of Section 3 shall
be deposited into the Build Illinois Fund in the State
treasury.
(c) Beginning on July 1, 2024, the total net revenue
realized from the tax imposed under this Act for the preceding
month shall be deposited each month as follows:
(1) 50% shall be deposited into the Build Illinois
Fund; and
(2) the remaining 50% shall be deposited in the
following order of priority:
(A) First:
(i) $5,000,000 shall be deposited into the
Illinois Sports Facilities Fund and credited to
the Subsidy Account each fiscal year by making
monthly deposits in the amount of one-eighth of
$5,000,000 plus cumulative deficiencies in those
deposits for prior months; and
(ii) an amount equal to the then applicable
Advance Amount, as defined in subsection (d),
shall be deposited into the Illinois Sports
Facilities Fund and credited to the Advance

SB3019 Enrolled - 85 - LRB104 20255 HLH 33706 b
Account each fiscal year by making monthly
deposits in the amount of one-eighth of the then
applicable Advance Amount plus any cumulative
deficiencies in such deposits for prior months;
the deposits of the then applicable Advance Amount
during each fiscal year shall be treated as
advances of funds to the Illinois Sports
Facilities Authority for its corporate purposes to
the extent paid to the Illinois Sports Facilities
Authority or its trustee and shall be repaid into
the General Revenue Fund in the State treasury by
the State Treasurer on behalf of the Authority
pursuant to Section 19 of the Illinois Sports
Facilities Authority Act; if, in any fiscal year,
the full amount of the Advance Amount is not
repaid into the General Revenue Fund, then the
deficiency shall be paid from the amount in the
Local Government Distributive Fund that would
otherwise be allocated to the City of Chicago
under the State Revenue Sharing Act; and
(B) after all required deposits into the Illinois
Sports Facilities Fund under paragraph (A) have been
made each month, the remainder shall be deposited as
follows:
(i) 56% into the Tourism Promotion Fund;
(ii) 23% into the Local Tourism Fund;

SB3019 Enrolled - 86 - LRB104 20255 HLH 33706 b
(iii) 14% into the Chicago Travel Industry
Promotion Fund; and
(iv) 7% into the International Tourism Fund.
(d) As used in subsections (b) and (c):
"Advance Amount" means, for fiscal year 2002, $22,179,000,
and for subsequent fiscal years through fiscal year 2033,
105.615% of the Advance Amount for the immediately preceding
fiscal year, rounded up to the nearest $1,000.
"Net revenue realized" means the revenue collected by the
State under this Act less the amount paid out as refunds to
taxpayers for overpayment of liability under this Act.
(e) The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.
Such annual return to the Department shall include a statement
of gross receipts as shown by the operator's last State income
tax return. If the total receipts of the business as reported
in the State income tax return do not agree with the gross
receipts reported to the Department for the same period, the
operator shall attach to the operator's his annual information
return a schedule showing a reconciliation of the 2 amounts
and the reasons for the difference. The operator's annual
information return to the Department shall also disclose
payroll information of the operator's business during the year

SB3019 Enrolled - 87 - LRB104 20255 HLH 33706 b
covered by such return and any additional reasonable
information which the Department deems would be helpful in
determining the accuracy of the monthly, quarterly or annual
tax returns by such operator as hereinbefore provided for in
this Section.
If the annual information return required by this Section
is not filed when and as required the taxpayer shall be liable
for a penalty in an amount determined in accordance with
Section 3-4 of the Uniform Penalty and Interest Act until such
return is filed as required, the penalty to be assessed and
collected in the same manner as any other penalty provided for
in this Act.
The chief executive officer, proprietor, owner or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person who
willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and punished
accordingly. The annual return form prescribed by the
Department shall include a warning that the person signing the
return may be liable for perjury.
The foregoing portion of this Section concerning the
filing of an annual information return shall not apply to an
operator who is not required to file an income tax return with
the United States Government.
(Source: P.A. 103-8, eff. 6-7-23; 103-592, eff. 7-1-24;
103-642, eff. 7-1-24; 104-417, eff. 8-15-25.)

SB3019 Enrolled - 88 - LRB104 20255 HLH 33706 b
ARTICLE 50
Section 50-5. The Senior Citizens Real Estate Tax Deferral
Act is amended by changing Section 3 as follows:
(320 ILCS 30/3) (from Ch. 67 1/2, par. 453)
Sec. 3. A taxpayer may, on or before March 1 of each year,
apply to the county collector of the county where his
qualifying property is located, or to the official designated
by a unit of local government to collect special assessments
on the qualifying property, as the case may be, for a deferral
of all or a part of real estate taxes payable during that year
for the preceding year in the case of real estate taxes other
than special assessments, or for a deferral of any
installments payable during that year in the case of special
assessments, on all or part of his qualifying property. The
application shall be on a form prescribed by the Department
and furnished by the collector, (a) showing that the applicant
will be 65 years of age or older by June 1 of the year for
which a tax deferral is claimed, (b) describing the property
and verifying that the property is qualifying property as
defined in Section 2, (c) certifying that the taxpayer has
owned and occupied as his residence such property or other
qualifying property in the State for at least the last 3 years
except for any periods during which the taxpayer may have

SB3019 Enrolled - 89 - LRB104 20255 HLH 33706 b
temporarily resided in a nursing or sheltered care home, and
(d) specifying whether the deferral is for all or a part of the
taxes, and, if for a part, the amount of deferral applied for.
As to qualifying property not having a separate assessed
valuation, the taxpayer shall also file with the county
collector a written appraisal of the property prepared by a
qualified real estate appraiser together with a certificate
signed by the appraiser stating that he has personally
examined the property and setting forth the value of the land
and the value of the buildings thereon occupied by the
taxpayer as his residence. The county collector may use
eligibility for the Low-Income Senior Citizens Assessment
Freeze Homestead Exemption under Section 15-172 of the
Property Tax Code as qualification for items (a) and (c).
The collector shall grant the tax deferral provided such
deferral does not exceed funds available in the Senior
Citizens Real Estate Deferred Tax Revolving Fund and provided
that the owner or owners of such real property have entered
into a tax deferral and recovery agreement with the collector
on behalf of the county or other unit of local government,
which agreement expressly states:
(1) That the total amount of taxes deferred under this
Act, plus interest, for the year for which a tax deferral
is claimed as well as for those previous years for which
taxes are not delinquent and for which such deferral has
been claimed may not exceed 80% of the taxpayer's equity

SB3019 Enrolled - 90 - LRB104 20255 HLH 33706 b
interest in the property for which taxes are to be
deferred and that, if the total deferred taxes plus
interest equals 80% of the taxpayer's equity interest in
the property, the taxpayer shall thereafter pay the annual
interest due on such deferred taxes plus interest so that
total deferred taxes plus interest will not exceed such
80% of the taxpayer's equity interest in the property.
Effective as of the January 1, 2011 assessment year or tax
year 2012 and through the 2021 tax year, the total amount
of any such deferral shall not exceed $5,000 per taxpayer
in each tax year. For the 2022 tax year and every tax year
thereafter after, the total amount of any such deferral
shall not exceed $7,500 per taxpayer in each tax year.
(2) That any real estate taxes deferred under this Act
and taxes paid by the Department of Revenue under this Act
and any interest accrued thereon are a lien on the real
estate and improvements thereon until paid and that the
real estate taxes deferred under this Act and taxes paid
by the Department of Revenue under this Act, together with
all interest and costs that may accrue on those amounts,
shall be a prior and first lien on the property, superior
to all other liens and encumbrances, until the deferred
taxes and taxes paid by the Department of Revenue,
interest, and costs are paid in accordance with this Act.
If the taxes deferred are for a tax year prior to 2023,
then interest shall accrue at the rate of 6% per year. If

SB3019 Enrolled - 91 - LRB104 20255 HLH 33706 b
the taxes deferred are for the 2023 tax year or any tax
year thereafter, then interest shall accrue at the rate of
3% per year. No sale or transfer of such real property may
be legally closed and recorded until the taxes which would
otherwise have been due on the property, plus accrued
interest, have been paid unless the collector certifies in
writing that an arrangement for prompt payment of the
amount due has been made with his office. The same shall
apply if the property is to be made the subject of a
contract of sale.
(3) That, upon the death of the taxpayer claiming the
deferral, the heirs-at-law, assignees, or legatees shall
have first priority to the real property upon which taxes
have been deferred by paying in full the total taxes which
would otherwise have been due, plus interest. However, if
such heir-at-law, assignee, or legatee is a surviving
spouse, the tax deferred status of the property shall be
continued during the life of that surviving spouse if the
spouse is 55 years of age or older within 6 months of the
date of death of the taxpayer and enters into a tax
deferral and recovery agreement before the time when
deferred taxes become due under this Section. Any
additional taxes deferred, plus interest, on the real
property under a tax deferral and recovery agreement
signed by a surviving spouse shall be added to the taxes
and interest which would otherwise have been due, and the

SB3019 Enrolled - 92 - LRB104 20255 HLH 33706 b
payment of which has been postponed during the life of
such surviving spouse, in determining the 80% equity
requirement provided by this Section.
(4) That if the taxes due, plus interest, are not paid
by the heir-at-law, assignee or legatee or if payment is
not postponed during the life of a surviving spouse, the
deferred taxes and interest shall be recovered from the
estate of the taxpayer within one year of the date of his
death. In addition, deferred real estate taxes and any
interest accrued thereon are due within 90 days after any
tax deferred property ceases to be qualifying property as
defined in Section 2.
If payment is not made when required by this Section,
foreclosure proceedings may be instituted under the
Property Tax Code.
(5) That any joint owner has given written prior
approval for such agreement, which written approval shall
be made a part of such agreement.
(6) That a guardian for a person under legal
disability appointed for a taxpayer who otherwise
qualifies under this Act may act for the taxpayer in
complying with this Act.
(7) That a taxpayer or his agent has provided to the
satisfaction of the collector, sufficient evidence that
the qualifying property on which the taxes are to be
deferred is insured against fire or casualty loss for at

SB3019 Enrolled - 93 - LRB104 20255 HLH 33706 b
least the total amount of taxes which have been deferred.
If the taxes to be deferred are special assessments, the
unit of local government making the assessments shall forward
a copy of the agreement entered into pursuant to this Section
and the bills for such assessments to the county collector of
the county in which the qualifying property is located.
Notwithstanding any provision of law to the contrary, the
real estate taxes deferred under this Act and taxes paid by the
Department of Revenue under this Act, together with all
interest and costs that may accrue on those amounts, shall be a
prior and first lien on the property, superior to all other
liens and encumbrances, until the deferred taxes and taxes
paid by the Department of Revenue, interest, and costs are
paid in accordance with this Act.
(Source: P.A. 104-452, eff. 12-12-25; revised 1-8-26.)
ARTICLE 65
Section 65-5. The State Finance Act is amended by changing
Section 6z-22 as follows:
(30 ILCS 105/6z-22) (from Ch. 127, par. 142z-22)
Sec. 6z-22. Viable public guardianship and advocacy
programs, including the public guardianship programs created
and supervised in probate proceedings in State courts, are
essential to the administration of justice and operation of

SB3019 Enrolled - 94 - LRB104 20255 HLH 33706 b
the court to ensure that incapacitated persons and their
estates are protected regardless of their individual capacity
to access the courts. Providing independent legal
representation for individuals named in proceedings initiated
under the Mental Health and Developmental Disabilities Code is
essential to the administration of justice and operation of
courts so that an individual named in such proceedings,
regardless of resources, is afforded counsel that is free of
conflicting duties and charged with insuring compliance with
the Code's requirements, which is a necessary safeguard to
prevent the mental health and developmental disabilities
systems from become a tool to oppress rather than serve
society. To defray the expense of maintaining and operating
the divisions and programs of the Guardianship and Advocacy
Commission and to support viable guardianship and advocacy
programs throughout the State, each circuit court clerk must
remit a portion of the filing and appearance fees, as provided
in Section 27.1b of the Clerk of Courts Act, to the State
Treasurer for deposit into the Guardianship and Advocacy Fund.
All fees or other monies received by the Guardianship and
Advocacy Commission incident to the provision of legal or
guardianship services to eligible persons or wards pursuant to
subsection (i) of Section 5 of the Guardianship and Advocacy
Act shall be paid into the Guardianship and Advocacy Fund.
Appropriations for the improvement, development, addition
or expansion of legal and guardianship services for eligible

SB3019 Enrolled - 95 - LRB104 20255 HLH 33706 b
persons or wards pursuant to Section 5 of the Guardianship and
Advocacy Act or for the financing of any program designed to
provide such improvement, development, addition or expansion
of services or for expenses incurred in administering the
Human Rights Authority, Legal Advocacy Service and Office of
State Guardian are payable from the Guardianship and Advocacy
Fund.
(Source: P.A. 86-448; 86-1028.)
Section 65-10. The Clerks of Courts Act is amended by
changing Section 27.1b as follows:
(705 ILCS 105/27.1b)
Sec. 27.1b. Circuit court clerk fees. Notwithstanding any
other provision of law, all fees charged by the clerks of the
circuit court for the services described in this Section shall
be established, collected, and disbursed in accordance with
this Section. Except as otherwise specified in this Section,
all fees under this Section shall be paid in advance and
disbursed by each clerk on a monthly basis. In a county with a
population of over 3,000,000, units of local government and
school districts shall not be required to pay fees under this
Section in advance and the clerk shall instead send an
itemized bill to the unit of local government or school
district, within 30 days of the fee being incurred, and the
unit of local government or school district shall be allowed

SB3019 Enrolled - 96 - LRB104 20255 HLH 33706 b
at least 30 days from the date of the itemized bill to pay;
these payments shall be disbursed by each clerk on a monthly
basis. Unless otherwise specified in this Section, the amount
of a fee shall be determined by ordinance or resolution of the
county board and remitted to the county treasurer to be used
for purposes related to the operation of the court system in
the county. In a county with a population of over 3,000,000,
any amount retained by the clerk of the circuit court or
remitted to the county treasurer shall be subject to
appropriation by the county board.
(a) Civil cases. The fee for filing a complaint, petition,
or other pleading initiating a civil action shall be as set
forth in the applicable schedule under this subsection in
accordance with case categories established by the Supreme
Court in schedules.
(1) SCHEDULE 1: not to exceed a total of $371 $366 in a
county with a population of 3,000,000 or more and not to
exceed $321 $316 in any other county, except as applied to
units of local government and school districts in counties
with more than 3,000,000 inhabitants an amount not to
exceed $195 $190 through December 31, 2021 and $184 on and
after January 1, 2022. The fees collected under this
schedule shall be disbursed as follows:
(A) The clerk shall retain a sum, in an amount not
to exceed $55 in a county with a population of
3,000,000 or more and in an amount not to exceed $45 in

SB3019 Enrolled - 97 - LRB104 20255 HLH 33706 b
any other county determined by the clerk with the
approval of the Supreme Court, to be used for court
automation, court document storage, and administrative
purposes.
(B) The clerk shall remit up to $26 $21 to the
State Treasurer. The State Treasurer shall deposit the
appropriate amounts, in accordance with the clerk's
instructions, as follows:
(i) up to $10, as specified by the Supreme
Court in accordance with Part 10A of Article II of
the Code of Civil Procedure, into the Mandatory
Arbitration Fund;
(ii) $2 into the Access to Justice Fund; and
(iii) $5 into the Guardianship and Advocacy
Fund; and
(iv) (iii) $9 into the Supreme Court Special
Purposes Fund.
(C) The clerk shall remit a sum to the County
Treasurer, in an amount not to exceed $290 in a county
with a population of 3,000,000 or more and in an amount
not to exceed $250 in any other county, as specified by
ordinance or resolution passed by the county board,
for purposes related to the operation of the court
system in the county.
(2) SCHEDULE 2: not to exceed a total of $362 $357 in a
county with a population of 3,000,000 or more and not to

SB3019 Enrolled - 98 - LRB104 20255 HLH 33706 b
exceed $266 in any other county, except as applied to
units of local government and school districts in counties
with more than 3,000,000 inhabitants an amount not to
exceed $190 through December 31, 2021 and $184 on and
after January 1, 2022. The fees collected under this
schedule shall be disbursed as follows:
(A) The clerk shall retain a sum, in an amount not
to exceed $55 in a county with a population of
3,000,000 or more and in an amount not to exceed $45 in
any other county determined by the clerk with the
approval of the Supreme Court, to be used for court
automation, court document storage, and administrative
purposes.
(B) The clerk shall remit up to $21 to the State
Treasurer. The State Treasurer shall deposit the
appropriate amounts, in accordance with the clerk's
instructions, as follows:
(i) up to $10, as specified by the Supreme
Court in accordance with Part 10A of Article II of
the Code of Civil Procedure, into the Mandatory
Arbitration Fund;
(ii) $2 into the Access to Justice Fund: and
(iii) $9 into the Supreme Court Special
Purposes Fund.
(C) The clerk shall remit a sum to the County
Treasurer, in an amount not to exceed $281 in a county

SB3019 Enrolled - 99 - LRB104 20255 HLH 33706 b
with a population of 3,000,000 or more and in an amount
not to exceed $200 in any other county, as specified by
ordinance or resolution passed by the county board,
for purposes related to the operation of the court
system in the county.
(3) SCHEDULE 3: not to exceed a total of $270 $265 in a
county with a population of 3,000,000 or more and not to
exceed $94 $89 in any other county, except as applied to
units of local government and school districts in counties
with more than 3,000,000 inhabitants an amount not to
exceed $195 $190 through December 31, 2021 and $184 on and
after January 1, 2022. The fees collected under this
schedule shall be disbursed as follows:
(A) The clerk shall retain a sum, in an amount not
to exceed $55 in a county with a population of
3,000,000 or more and in an amount not to exceed $22 in
any other county determined by the clerk with the
approval of the Supreme Court, to be used for court
automation, court document storage, and administrative
purposes.
(B) The clerk shall remit $16 $11 to the State
Treasurer. The State Treasurer shall deposit the
appropriate amounts in accordance with the clerk's
instructions, as follows:
(i) $2 into the Access to Justice Fund; and
(ii) $5 into the Guardianship and Advocacy

SB3019 Enrolled - 100 - LRB104 20255 HLH 33706 b
Fund; and
(iii) (ii) $9 into the Supreme Court Special
Purposes Fund.
(C) The clerk shall remit a sum to the County
Treasurer, in an amount not to exceed $199 in a county
with a population of 3,000,000 or more and in an amount
not to exceed $56 in any other county, as specified by
ordinance or resolution passed by the county board,
for purposes related to the operation of the court
system in the county.
(4) SCHEDULE 4: $0.
(b) Appearance. The fee for filing an appearance in a
civil action, including a cannabis civil law action under the
Cannabis Control Act, shall be as set forth in the applicable
schedule under this subsection in accordance with case
categories established by the Supreme Court in schedules.
(1) SCHEDULE 1: not to exceed a total of $235 $230 in a
county with a population of 3,000,000 or more and not to
exceed $196 $191 in any other county, except as applied to
units of local government and school districts in counties
with more than 3,000,000 inhabitants an amount not to
exceed $80 $75. The fees collected under this schedule
shall be disbursed as follows:
(A) The clerk shall retain a sum, in an amount not
to exceed $50 in a county with a population of
3,000,000 or more and in an amount not to exceed $45 in

SB3019 Enrolled - 101 - LRB104 20255 HLH 33706 b
any other county determined by the clerk with the
approval of the Supreme Court, to be used for court
automation, court document storage, and administrative
purposes.
(B) The clerk shall remit up to $26 $21 to the
State Treasurer. The State Treasurer shall deposit the
appropriate amounts, in accordance with the clerk's
instructions, as follows:
(i) up to $10, as specified by the Supreme
Court in accordance with Part 10A of Article II of
the Code of Civil Procedure, into the Mandatory
Arbitration Fund;
(ii) $2 into the Access to Justice Fund; and
(iii) $5 into the Guardianship and Advocacy
Fund; and
(iv) (iii) $9 into the Supreme Court Special
Purposes Fund.
(C) The clerk shall remit a sum to the County
Treasurer, in an amount not to exceed $159 in a county
with a population of 3,000,000 or more and in an amount
not to exceed $125 in any other county, as specified by
ordinance or resolution passed by the county board,
for purposes related to the operation of the court
system in the county.
(2) SCHEDULE 2: not to exceed a total of $135 $130 in a
county with a population of 3,000,000 or more and not to

SB3019 Enrolled - 102 - LRB104 20255 HLH 33706 b
exceed $114 $109 in any other county, except as applied to
units of local government and school districts in counties
with more than 3,000,000 inhabitants an amount not to
exceed $80 $75. The fees collected under this schedule
shall be disbursed as follows:
(A) The clerk shall retain a sum, in an amount not
to exceed $50 in a county with a population of
3,000,000 or more and in an amount not to exceed $10 in
any other county determined by the clerk with the
approval of the Supreme Court, to be used for court
automation, court document storage, and administrative
purposes.
(B) The clerk shall remit up to $14 $9 to the State
Treasurer. The , which the State Treasurer shall
deposit the appropriate amounts, in accordance with
the clerk's instructions, as follows: into the Supreme
Court Special Purposes Fund.
(i) $5 into the Guardianship and Advocacy
Fund; and
(ii) $9 into the Supreme Court Special
Purposes Fund.
(C) The clerk shall remit a sum to the County
Treasurer, in an amount not to exceed $71 in a county
with a population of 3,000,000 or more and in an amount
not to exceed $90 in any other county, as specified by
ordinance or resolution passed by the county board,

SB3019 Enrolled - 103 - LRB104 20255 HLH 33706 b
for purposes related to the operation of the court
system in the county.
(3) SCHEDULE 3: $0.
(b-5) Kane County and Will County. In Kane County and Will
County civil cases, there is an additional fee of up to $30 as
set by the county board under Section 5-1101.3 of the Counties
Code to be paid by each party at the time of filing the first
pleading, paper, or other appearance; provided that no
additional fee shall be required if more than one party is
represented in a single pleading, paper, or other appearance.
Distribution of fees collected under this subsection (b-5)
shall be as provided in Section 5-1101.3 of the Counties Code.
(c) Counterclaim or third party complaint. When any
defendant files a counterclaim or third party complaint, as
part of the defendant's answer or otherwise, the defendant
shall pay a filing fee for each counterclaim or third party
complaint in an amount equal to the filing fee the defendant
would have had to pay had the defendant brought a separate
action for the relief sought in the counterclaim or third
party complaint, less the amount of the appearance fee, if
any, that the defendant has already paid in the action in which
the counterclaim or third party complaint is filed.
(d) Alias summons. The clerk shall collect a fee not to
exceed $6 in a county with a population of 3,000,000 or more
and not to exceed $5 in any other county for each alias summons
or citation issued by the clerk, except as applied to units of

SB3019 Enrolled - 104 - LRB104 20255 HLH 33706 b
local government and school districts in counties with more
than 3,000,000 inhabitants an amount not to exceed $5 for each
alias summons or citation issued by the clerk.
(e) Jury services. The clerk shall collect, in addition to
other fees allowed by law, a sum not to exceed $212.50, as a
fee for the services of a jury in every civil action not
quasi-criminal in its nature and not a proceeding for the
exercise of the right of eminent domain and in every other
action wherein the right of trial by jury is or may be given by
law. The jury fee shall be paid by the party demanding a jury
at the time of filing the jury demand. If the fee is not paid
by either party, no jury shall be called in the action or
proceeding, and the action or proceeding shall be tried by the
court without a jury.
(f) Change of venue. In connection with a change of venue:
(1) The clerk of the jurisdiction from which the case
is transferred may charge a fee, not to exceed $40, for the
preparation and certification of the record; and
(2) The clerk of the jurisdiction to which the case is
transferred may charge the same filing fee as if it were
the commencement of a new suit.
(g) Petition to vacate or modify.
(1) In a proceeding involving a petition to vacate or
modify any final judgment or order filed within 30 days
after the judgment or order was entered, except for an
eviction case, small claims case, petition to reopen an

SB3019 Enrolled - 105 - LRB104 20255 HLH 33706 b
estate, petition to modify, terminate, or enforce a
judgment or order for child or spousal support, or
petition to modify, suspend, or terminate an order for
withholding, the fee shall not exceed $60 in a county with
a population of 3,000,000 or more and shall not exceed $50
in any other county, except as applied to units of local
government and school districts in counties with more than
3,000,000 inhabitants an amount not to exceed $50.
(2) In a proceeding involving a petition to vacate or
modify any final judgment or order filed more than 30 days
after the judgment or order was entered, except for a
petition to modify, terminate, or enforce a judgment or
order for child or spousal support, or petition to modify,
suspend, or terminate an order for withholding, the fee
shall not exceed $75.
(3) In a proceeding involving a motion to vacate or
amend a final order, motion to vacate an ex parte
judgment, judgment of forfeiture, or "failure to appear"
or "failure to comply" notices sent to the Secretary of
State, the fee shall equal $40.
(h) Appeals preparation. The fee for preparation of a
record on appeal shall be based on the number of pages, as
follows:
(1) if the record contains no more than 100 pages, the
fee shall not exceed $70 in a county with a population of
3,000,000 or more and shall not exceed $50 in any other

SB3019 Enrolled - 106 - LRB104 20255 HLH 33706 b
county;
(2) if the record contains between 100 and 200 pages,
the fee shall not exceed $100; and
(3) if the record contains 200 or more pages, the
clerk may collect an additional fee not to exceed 25 cents
per page.
(i) Remands. In any cases remanded to the circuit court
from the Supreme Court or the appellate court for a new trial,
the clerk shall reinstate the case with either its original
number or a new number. The clerk shall not charge any new or
additional fee for the reinstatement. Upon reinstatement, the
clerk shall advise the parties of the reinstatement. Parties
shall have the same right to a jury trial on remand and
reinstatement that they had before the appeal, and no
additional or new fee or charge shall be made for a jury trial
after remand.
(j) Garnishment, wage deduction, and citation. In
garnishment affidavit, wage deduction affidavit, and citation
petition proceedings:
(1) if the amount in controversy in the proceeding is
not more than $1,000, the fee may not exceed $35 in a
county with a population of 3,000,000 or more and may not
exceed $15 in any other county, except as applied to units
of local government and school districts in counties with
more than 3,000,000 inhabitants an amount not to exceed
$15;

SB3019 Enrolled - 107 - LRB104 20255 HLH 33706 b
(2) if the amount in controversy in the proceeding is
greater than $1,000 and not more than $5,000, the fee may
not exceed $45 in a county with a population of 3,000,000
or more and may not exceed $30 in any other county, except
as applied to units of local government and school
districts in counties with more than 3,000,000 inhabitants
an amount not to exceed $30; and
(3) if the amount in controversy in the proceeding is
greater than $5,000, the fee may not exceed $65 in a county
with a population of 3,000,000 or more and may not exceed
$50 in any other county, except as applied to units of
local government and school districts in counties with
more than 3,000,000 inhabitants an amount not to exceed
$50.
(j-5) Debt collection. In any proceeding to collect a debt
subject to the exception in item (ii) of subparagraph (A-5) of
paragraph (1) of subsection (z) of this Section, the circuit
court shall order and the clerk shall collect from each
judgment debtor a fee of:
(1) $35 if the amount in controversy in the proceeding
is not more than $1,000;
(2) $45 if the amount in controversy in the proceeding
is greater than $1,000 and not more than $5,000; and
(3) $65 if the amount in controversy in the proceeding
is greater than $5,000.
(k) Collections.

SB3019 Enrolled - 108 - LRB104 20255 HLH 33706 b
(1) For all collections made of others, except the
State and county and except in maintenance or child
support cases, the clerk may collect a fee of up to 2.5% of
the amount collected and turned over.
(2) In child support and maintenance cases, the clerk
may collect an annual fee of up to $36 from the person
making payment for maintaining child support records and
the processing of support orders to the State of Illinois
KIDS system and the recording of payments issued by the
State Disbursement Unit for the official record of the
Court. This fee is in addition to and separate from
amounts ordered to be paid as maintenance or child support
and shall be deposited into a Separate Maintenance and
Child Support Collection Fund, of which the clerk shall be
the custodian, ex officio, to be used by the clerk to
maintain child support orders and record all payments
issued by the State Disbursement Unit for the official
record of the Court. The clerk may recover from the person
making the maintenance or child support payment any
additional cost incurred in the collection of this annual
fee.
(3) The clerk may collect a fee of $5 for
certifications made to the Secretary of State as provided
in Section 7-703 of the Illinois Vehicle Code, and this
fee shall be deposited into the Separate Maintenance and
Child Support Collection Fund.

SB3019 Enrolled - 109 - LRB104 20255 HLH 33706 b
(4) In proceedings to foreclose the lien of delinquent
real estate taxes, State's Attorneys shall receive a fee
of 10% of the total amount realized from the sale of real
estate sold in the proceedings. The clerk shall collect
the fee from the total amount realized from the sale of the
real estate sold in the proceedings and remit to the
County Treasurer to be credited to the earnings of the
Office of the State's Attorney.
(l) Mailing. The fee for the clerk mailing documents shall
not exceed $10 plus the cost of postage.
(m) Certified copies. The fee for each certified copy of a
judgment, after the first copy, shall not exceed $10.
(n) Certification, authentication, and reproduction.
(1) The fee for each certification or authentication
for taking the acknowledgment of a deed or other
instrument in writing with the seal of office shall not
exceed $6.
(2) The fee for reproduction of any document contained
in the clerk's files shall not exceed:
(A) $2 for the first page;
(B) 50 cents per page for the next 19 pages; and
(C) 25 cents per page for all additional pages.
(o) Record search. For each record search, within a
division or municipal district, the clerk may collect a search
fee not to exceed $6 for each year searched.
(p) Hard copy. For each page of hard copy print output,

SB3019 Enrolled - 110 - LRB104 20255 HLH 33706 b
when case records are maintained on an automated medium, the
clerk may collect a fee not to exceed $10 in a county with a
population of 3,000,000 or more and not to exceed $6 in any
other county, except as applied to units of local government
and school districts in counties with more than 3,000,000
inhabitants an amount not to exceed $6.
(q) Index inquiry and other records. No fee shall be
charged for a single plaintiff and defendant index inquiry or
single case record inquiry when this request is made in person
and the records are maintained in a current automated medium,
and when no hard copy print output is requested. The fees to be
charged for management records, multiple case records, and
multiple journal records may be specified by the Chief Judge
pursuant to the guidelines for access and dissemination of
information approved by the Supreme Court.
(r) Performing a marriage. There shall be a $10 fee for
performing a marriage in court.
(s) Voluntary assignment. For filing each deed of
voluntary assignment, the clerk shall collect a fee not to
exceed $20. For recording a deed of voluntary assignment, the
clerk shall collect a fee not to exceed 50 cents for each 100
words. Exceptions filed to claims presented to an assignee of
a debtor who has made a voluntary assignment for the benefit of
creditors shall be considered and treated, for the purpose of
taxing costs therein, as actions in which the party or parties
filing the exceptions shall be considered as party or parties

SB3019 Enrolled - 111 - LRB104 20255 HLH 33706 b
plaintiff, and the claimant or claimants as party or parties
defendant, and those parties respectively shall pay to the
clerk the same fees as provided by this Section to be paid in
other actions.
(t) Expungement petition. Except as provided in Sections
1-19 and 5-915 of the Juvenile Court Act of 1987, the clerk may
collect a fee not to exceed $60 for each expungement petition
filed and an additional fee not to exceed $4 for each certified
copy of an order to expunge arrest records.
(u) Transcripts of judgment. For the filing of a
transcript of judgment, the clerk may collect the same fee as
if it were the commencement of a new suit.
(v) Probate filings.
(1) For each account (other than one final account)
filed in the estate of a decedent, or ward, the fee shall
not exceed $25. No fee may be charged for accounts filed
for guardianships established for minors pursuant to
Article XI of the Probate Act of 1975 or for disabled
adults under Article XIa of the Probate Act of 1975.
(2) For filing a claim in an estate when the amount
claimed is greater than $150 and not more than $500, the
fee shall not exceed $40 in a county with a population of
3,000,000 or more and shall not exceed $25 in any other
county; when the amount claimed is greater than $500 and
not more than $10,000, the fee shall not exceed $55 in a
county with a population of 3,000,000 or more and shall

SB3019 Enrolled - 112 - LRB104 20255 HLH 33706 b
not exceed $40 in any other county; and when the amount
claimed is more than $10,000, the fee shall not exceed $75
in a county with a population of 3,000,000 or more and
shall not exceed $60 in any other county; except the court
in allowing a claim may add to the amount allowed the
filing fee paid by the claimant.
(3) For filing in an estate a claim, petition, or
supplemental proceeding based upon an action seeking
equitable relief including the construction or contest of
a will, enforcement of a contract to make a will, and
proceedings involving testamentary trusts or the
appointment of testamentary trustees, the fee shall not
exceed $60.
(4) There shall be no fee for filing in an estate: (i)
the appearance of any person for the purpose of consent;
or (ii) the appearance of an executor, administrator,
administrator to collect, guardian, guardian ad litem, or
special administrator.
(5) For each jury demand, the fee shall not exceed
$137.50.
(6) For each certified copy of letters of office, of
court order, or other certification, the fee shall not
exceed $2 per page.
(7) For each exemplification, the fee shall not exceed
$2, plus the fee for certification.
(8) The executor, administrator, guardian, petitioner,

SB3019 Enrolled - 113 - LRB104 20255 HLH 33706 b
or other interested person or his or her attorney shall
pay the cost of publication by the clerk directly to the
newspaper.
(9) The person on whose behalf a charge is incurred
for witness, court reporter, appraiser, or other
miscellaneous fees shall pay the same directly to the
person entitled thereto.
(10) The executor, administrator, guardian,
petitioner, or other interested person or his or her
attorney shall pay to the clerk all postage charges
incurred by the clerk in mailing petitions, orders,
notices, or other documents pursuant to the provisions of
the Probate Act of 1975.
(w) Corrections of numbers. For correction of the case
number, case title, or attorney computer identification
number, if required by rule of court, on any document filed in
the clerk's office, to be charged against the party that filed
the document, the fee shall not exceed $25.
(x) Miscellaneous.
(1) Interest earned on any fees collected by the clerk
shall be turned over to the county general fund as an
earning of the office.
(2) For any check, draft, or other bank instrument
returned to the clerk for non-sufficient funds, account
closed, or payment stopped, the clerk shall collect a fee
of $25.

SB3019 Enrolled - 114 - LRB104 20255 HLH 33706 b
(y) Other fees. Any fees not covered in this Section shall
be set by rule or administrative order of the circuit court
with the approval of the Administrative Office of the Illinois
Courts. The clerk of the circuit court may provide services in
connection with the operation of the clerk's office, other
than those services mentioned in this Section, as may be
requested by the public and agreed to by the clerk and approved
by the Chief Judge. Any charges for additional services shall
be as agreed to between the clerk and the party making the
request and approved by the Chief Judge. Nothing in this
subsection shall be construed to require any clerk to provide
any service not otherwise required by law.
(y-5) Unpaid fees. Unless a court ordered payment schedule
is implemented or the fee requirements of this Section are
waived under a court order, the clerk of the circuit court may
add to any unpaid fees and costs under this Section a
delinquency amount equal to 5% of the unpaid fees that remain
unpaid after 30 days, 10% of the unpaid fees that remain unpaid
after 60 days, and 15% of the unpaid fees that remain unpaid
after 90 days. Notice to those parties may be made by signage
posting or publication. The additional delinquency amounts
collected under this Section shall be deposited into the
Circuit Court Clerk Operations and Administration Fund and
used to defray additional administrative costs incurred by the
clerk of the circuit court in collecting unpaid fees and
costs.

SB3019 Enrolled - 115 - LRB104 20255 HLH 33706 b
(z) Exceptions.
(1) No fee authorized by this Section shall apply to:
(A) police departments or other law enforcement
agencies. In this Section, "law enforcement agency"
means: an agency of the State or agency of a unit of
local government which is vested by law or ordinance
with the duty to maintain public order and to enforce
criminal laws or ordinances; the Attorney General; or
any State's Attorney;
(A-5) any unit of local government or school
district, except in counties having a population of
500,000 or more the county board may by resolution set
fees for units of local government or school districts
no greater than the minimum fees applicable in
counties with a population less than 3,000,000;
provided however, no fee may be charged to any unit of
local government or school district in connection with
any action which, in whole or in part, is: (i) to
enforce an ordinance; (ii) to collect a debt; or (iii)
under the Administrative Review Law;
(B) any action instituted by the corporate
authority of a municipality with more than 1,000,000
inhabitants under Section 11-31-1 of the Illinois
Municipal Code and any action instituted under
subsection (b) of Section 11-31-1 of the Illinois
Municipal Code by a private owner or tenant of real

SB3019 Enrolled - 116 - LRB104 20255 HLH 33706 b
property within 1,200 feet of a dangerous or unsafe
building seeking an order compelling the owner or
owners of the building to take any of the actions
authorized under that subsection;
(C) any commitment petition, petition for
discharge petition, or petition for an order
authorizing the administration of psychotropic
medication or electroconvulsive therapy under the
Mental Health and Developmental Disabilities Code;
(D) a petitioner in any order of protection
proceeding, including, but not limited to, fees for
filing, modifying, withdrawing, certifying, or
photocopying petitions for orders of protection,
issuing alias summons, any related filing service, or
certifying, modifying, vacating, or photocopying any
orders of protection;
(E) proceedings for the appointment of a
confidential intermediary under the Adoption Act;
(F) a minor subject to Article III, IV, or V of the
Juvenile Court Act of 1987, or the minor's parent,
guardian, or legal custodian; or
(G) a minor under the age of 18 transferred to
adult court or excluded from juvenile court
jurisdiction under Article V of the Juvenile Court Act
of 1987, or the minor's parent, guardian, or legal
custodian.

SB3019 Enrolled - 117 - LRB104 20255 HLH 33706 b
(2) No fee other than the filing fee contained in the
applicable schedule in subsection (a) shall be charged to
any person in connection with an adoption proceeding.
(3) Upon good cause shown, the court may waive any
fees associated with a special needs adoption. The term
"special needs adoption" has the meaning provided by the
Illinois Department of Children and Family Services.
(4) No fee may be charged for the filing of an
appearance by any defendant in a small claim proceeding.
As used in this Section, "small claim" means a proceeding
as defined in Supreme Court Rule 281.
(Source: P.A. 103-4, eff. 5-31-23; 103-379, eff. 7-28-23;
103-605, eff. 7-1-24; 104-120, eff. 1-1-26.)
(705 ILCS 105/27.3f rep.)
Section 65-15. The Clerks of Courts Act is amended by
repealing Section 27.3f.
ARTICLE 70
Section 70-5. The Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois
is amended by changing Section 605-1025 as follows:
(20 ILCS 605/605-1025)
Sec. 605-1025. Data center investment.

SB3019 Enrolled - 118 - LRB104 20255 HLH 33706 b
(a) The Department shall issue certificates of exemption
from the Retailers' Occupation Tax Act, the Use Tax Act, the
Service Use Tax Act, and the Service Occupation Tax Act, all
locally-imposed retailers' occupation taxes administered and
collected by the Department of Revenue, the Chicago non-titled
Use Tax, and a credit certification against the taxes imposed
under subsections (a) and (b) of Section 201 of the Illinois
Income Tax Act to qualifying Illinois data centers.
(b) For taxable years beginning on or after January 1,
2019, the Department shall award credits against the taxes
imposed under subsections (a) and (b) of Section 201 of the
Illinois Income Tax Act as provided in Section 229 of the
Illinois Income Tax Act.
(c) For purposes of this Section:
"Data center" means a facility: (1) whose primary
services are the storage, management, and processing of
digital data; and (2) that is used to house (i) computer
and network systems, including associated components such
as servers, network equipment and appliances,
telecommunications, and data storage systems, (ii) systems
for monitoring and managing infrastructure performance,
(iii) Internet-related equipment and services, (iv) data
communications connections, (v) environmental controls,
(vi) fire protection systems, and (vii) security systems
and services.
"Qualifying Illinois data center" means a new or

SB3019 Enrolled - 119 - LRB104 20255 HLH 33706 b
existing data center that:
(1) is located in the State of Illinois;
(2) in the case of an existing data center, made a
capital investment of at least $250,000,000
collectively by the data center operator and the
tenants of the data center over the 60-month period
immediately prior to January 1, 2020 or committed to
make a capital investment of at least $250,000,000
over a 60-month period commencing before January 1,
2020 and ending after January 1, 2020; or
(3) in the case of a new data center, or an
existing data center making an upgrade, makes a
capital investment of at least $250,000,000 over a
60-month period beginning on or after January 1, 2020;
and
(4) in the case of both existing and new data
centers, results in the creation of at least 20
full-time or full-time equivalent new jobs over a
period of 60 months by the data center operator and the
tenants of the data center, collectively, associated
with the operation or maintenance of the data center;
those jobs must have a total compensation equal to or
greater than 120% of the average wage paid to
full-time employees in the county where the data
center is located, as determined by the U.S. Bureau of
Labor Statistics; and

SB3019 Enrolled - 120 - LRB104 20255 HLH 33706 b
(5) within 2 years after being placed in service,
certifies to the Department that it is carbon neutral
or has attained certification under one or more of the
following green building standards:
(A) BREEAM for New Construction or BREEAM
In-Use;
(B) ENERGY STAR;
(C) Envision;
(D) ISO 50001-energy management;
(E) LEED for Building Design and Construction
or LEED for Operations and Maintenance;
(F) Green Globes for New Construction or Green
Globes for Existing Buildings;
(G) UL 3223; or
(H) an equivalent program approved by the
Department of Commerce and Economic Opportunity.
"Full-time equivalent job" means a job in which the
new employee works for the owner, operator, contractor, or
tenant of a data center or for a corporation under
contract with the owner, operator or tenant of a data
center at a rate of at least 35 hours per week. An owner,
operator or tenant who employs labor or services at a
specific site or facility under contract with another may
declare one full-time, permanent job for every 1,820 man
hours worked per year under that contract. Vacations, paid
holidays, and sick time are included in this computation.

SB3019 Enrolled - 121 - LRB104 20255 HLH 33706 b
Overtime is not considered a part of regular hours.
"Qualified tangible personal property" means:
electrical systems and equipment; climate control and
chilling equipment and systems; mechanical systems and
equipment; monitoring and secure systems; emergency
generators; hardware; computers; servers; data storage
devices; network connectivity equipment; racks; cabinets;
telecommunications cabling infrastructure; raised floor
systems; peripheral components or systems; software;
mechanical, electrical, or plumbing systems; battery
systems; cooling systems and towers; temperature control
systems; other cabling; and other data center
infrastructure equipment and systems necessary to operate
qualified tangible personal property, including fixtures;
and component parts of any of the foregoing, including
installation, maintenance, repair, refurbishment, and
replacement of qualified tangible personal property to
generate, transform, transmit, distribute, or manage
electricity necessary to operate qualified tangible
personal property; and all other tangible personal
property that is essential to the operations of a computer
data center. "Qualified tangible personal property" also
includes building materials physically incorporated in to
the qualifying data center.
To document the exemption allowed under this Section, the
retailer must obtain from the purchaser a copy of the

SB3019 Enrolled - 122 - LRB104 20255 HLH 33706 b
certificate of eligibility issued by the Department.
(d) New and existing data centers seeking a certificate of
exemption for new or existing facilities shall apply to the
Department in the manner specified by the Department. The
Department shall determine the duration of the certificate of
exemption awarded under this Act. The duration of the
certificate of exemption may not exceed 20 calendar years. The
Department and any data center seeking the exemption,
including a data center operator on behalf of itself and its
tenants, must enter into a memorandum of understanding that at
a minimum provides:
(1) the details for determining the amount of capital
investment to be made;
(2) the number of new jobs created;
(3) the timeline for achieving the capital investment
and new job goals;
(4) the repayment obligation should those goals not be
achieved and any conditions under which repayment by the
qualifying data center or data center tenant claiming the
exemption will be required;
(5) the duration of the exemption; and
(6) other provisions as deemed necessary by the
Department.
(e) Beginning July 1, 2021, and each year thereafter, the
Department shall annually report to the Governor and the
General Assembly on the outcomes and effectiveness of Public

SB3019 Enrolled - 123 - LRB104 20255 HLH 33706 b
Act 101-31 that shall include the following:
(1) the name of each recipient business;
(2) the location of the project;
(3) the estimated value of the credit;
(4) the number of new jobs and, if applicable,
retained jobs pledged as a result of the project; and
(5) whether or not the project is located in an
underserved area.
(f) New and existing data centers seeking a certificate of
exemption related to the rehabilitation or construction of
data centers in the State shall require the contractor and all
subcontractors to comply with the requirements of Section
30-22 of the Illinois Procurement Code as they apply to
responsible bidders and to present satisfactory evidence of
that compliance to the Department.
(g) New and existing data centers seeking a certificate of
exemption for the rehabilitation or construction of data
centers in the State shall require the contractor to enter
into a project labor agreement approved by the Department.
(h) Any qualifying data center issued a certificate of
exemption under this Section must annually report to the
Department the total data center tax benefits that are
received by the business. Reports are due no later than May 31
of each year and shall cover the previous calendar year. The
first report is for the 2019 calendar year and is due no later
than May 31, 2020.

SB3019 Enrolled - 124 - LRB104 20255 HLH 33706 b
To the extent that a business issued a certificate of
exemption under this Section has obtained an Enterprise Zone
Building Materials Exemption Certificate or a High Impact
Business Building Materials Exemption Certificate, no
additional reporting for those building materials exemption
benefits is required under this Section.
Failure to file a report under this subsection (h) may
result in suspension or revocation of the certificate of
exemption. Factors to be considered in determining whether a
data center certificate of exemption shall be suspended or
revoked include, but are not limited to, prior compliance with
the reporting requirements, cooperation in discontinuing and
correcting violations, the extent of the violation, and
whether the violation was willful or inadvertent.
(i) The Department shall not issue any new certificates of
exemption under the provisions of this Section after July 1,
2029. This sunset shall not affect any existing certificates
of exemption in effect on July 1, 2029.
(j) The Department shall adopt rules to implement and
administer this Section.
(Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 12-13-19;
102-427, eff. 8-20-21; 102-558, eff. 8-20-21.)
Section 70-10. The Department of Revenue Law of the Civil
Administrative Code of Illinois is amended by changing Section
2505-70 as follows:

SB3019 Enrolled - 125 - LRB104 20255 HLH 33706 b
(20 ILCS 2505/2505-70) (was 20 ILCS 2505/39b24)
Sec. 2505-70. Messages Tax Act; Gas Revenue Tax Act. The
Department has the power to exercise all the rights, powers,
and duties vested in the Department by the Messages Tax Act and
the Gas Revenue Tax Act.
(Source: P.A. 91-239, eff. 1-1-00.)
Section 70-15. The State Revenue Sharing Act is amended by
changing Section 12 as follows:
(30 ILCS 115/12) (from Ch. 85, par. 616)
Sec. 12. Personal Property Tax Replacement Fund. There is
hereby created the Personal Property Tax Replacement Fund, a
special fund in the State Treasury into which shall be paid all
revenue realized:
(a) all amounts realized from the additional personal
property tax replacement income tax imposed by subsections
(c) and (d) of Section 201 of the Illinois Income Tax Act,
except for those amounts deposited into the Income Tax
Refund Fund pursuant to subsection (c) of Section 901 of
the Illinois Income Tax Act; and
(b) all amounts realized from the additional personal
property replacement invested capital taxes imposed by
Section 2a.1 of the Messages Tax Act, Section 2a.1 of the
Gas Revenue Tax Act, Section 2a.1 of the Public Utilities

SB3019 Enrolled - 126 - LRB104 20255 HLH 33706 b
Revenue Act, and Section 3 of the Water Company Invested
Capital Tax Act, and amounts payable to the Department of
Revenue under the Telecommunications Infrastructure
Maintenance Fee Act.
As soon as may be after the end of each month, the
Department of Revenue shall certify to the Treasurer and the
Comptroller the amount of all refunds paid out of the General
Revenue Fund through the preceding month on account of
overpayment of liability on taxes paid into the Personal
Property Tax Replacement Fund. Upon receipt of such
certification, the Treasurer and the Comptroller shall
transfer the amount so certified from the Personal Property
Tax Replacement Fund into the General Revenue Fund.
The payments of revenue into the Personal Property Tax
Replacement Fund shall be used exclusively for distribution to
taxing districts, regional offices and officials, and local
officials as provided in this Section and in the School Code,
payment of the ordinary and contingent expenses of the
Property Tax Appeal Board, payment of the expenses of the
Department of Revenue incurred in administering the collection
and distribution of monies paid into the Personal Property Tax
Replacement Fund and transfers due to refunds to taxpayers for
overpayment of liability for taxes paid into the Personal
Property Tax Replacement Fund.
In addition, moneys in the Personal Property Tax
Replacement Fund may be used to pay any of the following: (i)

SB3019 Enrolled - 127 - LRB104 20255 HLH 33706 b
salary, stipends, and additional compensation as provided by
law for chief election clerks, county clerks, and county
recorders; (ii) costs associated with regional offices of
education and educational service centers; (iii)
reimbursements payable by the State Board of Elections under
Section 4-25, 5-35, 6-71, 13-10, 13-10a, or 13-11 of the
Election Code; (iv) expenses of the Illinois Educational Labor
Relations Board; and (v) salary, personal services, and
additional compensation as provided by law for court reporters
under the Court Reporters Act.
As soon as may be after June 26, 1980 (the effective date
of Public Act 81-1255), the Department of Revenue shall
certify to the Treasurer the amount of net replacement revenue
paid into the General Revenue Fund prior to that effective
date from the additional tax imposed by Section 2a.1 of the
Messages Tax Act; Section 2a.1 of the Gas Revenue Tax Act;
Section 2a.1 of the Public Utilities Revenue Act; Section 3 of
the Water Company Invested Capital Tax Act; amounts collected
by the Department of Revenue under the Telecommunications
Infrastructure Maintenance Fee Act; and the additional
personal property tax replacement income tax imposed by the
Illinois Income Tax Act, as amended by Public Act 81-1st
Special Session-1. Net replacement revenue shall be defined as
the total amount paid into and remaining in the General
Revenue Fund as a result of those Acts minus the amount
outstanding and obligated from the General Revenue Fund in

SB3019 Enrolled - 128 - LRB104 20255 HLH 33706 b
state vouchers or warrants prior to June 26, 1980 (the
effective date of Public Act 81-1255) as refunds to taxpayers
for overpayment of liability under those Acts.
All interest earned by monies accumulated in the Personal
Property Tax Replacement Fund shall be deposited into such
Fund. All amounts allocated pursuant to this Section are
appropriated on a continuing basis.
Prior to December 31, 1980, as soon as may be after the end
of each quarter beginning with the quarter ending December 31,
1979, and on and after December 31, 1980, as soon as may be
after January 1, March 1, April 1, May 1, July 1, August 1,
October 1 and December 1 of each year, the Department of
Revenue shall allocate to each taxing district as defined in
Section 1-150 of the Property Tax Code, in accordance with the
provisions of paragraph (2) of this Section the portion of the
funds held in the Personal Property Tax Replacement Fund which
is required to be distributed, as provided in paragraph (1),
for each quarter. Provided, however, under no circumstances
shall any taxing district during each of the first 2 years of
distribution of the taxes imposed by Public Act 81-1st Special
Session-1 be entitled to an annual allocation which is less
than the funds such taxing district collected from the 1978
personal property tax. Provided further that under no
circumstances shall any taxing district during the third year
of distribution of the taxes imposed by Public Act 81-1st
Special Session-1 receive less than 60% of the funds such

SB3019 Enrolled - 129 - LRB104 20255 HLH 33706 b
taxing district collected from the 1978 personal property tax.
In the event that the total of the allocations made as above
provided for all taxing districts, during either of such 3
years, exceeds the amount available for distribution the
allocation of each taxing district shall be proportionately
reduced. Except as provided in Section 13 of this Act, the
Department shall then certify, pursuant to appropriation, such
allocations to the State Comptroller who shall pay over to the
several taxing districts the respective amounts allocated to
them.
Any township which receives an allocation based in whole
or in part upon personal property taxes which it levied
pursuant to Section 6-507 or 6-512 of the Illinois Highway
Code and which was previously required to be paid over to a
municipality shall immediately pay over to that municipality a
proportionate share of the personal property replacement funds
which such township receives.
Any municipality or township, other than a municipality
with a population in excess of 500,000, which receives an
allocation based in whole or in part on personal property
taxes which it levied pursuant to Sections 3-1, 3-4 and 3-6 of
the Illinois Local Library Act and which was previously
required to be paid over to a public library shall immediately
pay over to that library a proportionate share of the personal
property tax replacement funds which such municipality or
township receives; provided that if such a public library has

SB3019 Enrolled - 130 - LRB104 20255 HLH 33706 b
converted to a library organized under the Illinois Public
Library District Act, regardless of whether such conversion
has occurred on, after or before January 1, 1988, such
proportionate share shall be immediately paid over to the
library district which maintains and operates the library.
However, any library that has converted prior to January 1,
1988, and which hitherto has not received the personal
property tax replacement funds, shall receive such funds
commencing on January 1, 1988.
Any township which receives an allocation based in whole
or in part on personal property taxes which it levied pursuant
to Section 1c of the Public Graveyards Act and which taxes were
previously required to be paid over to or used for such public
cemetery or cemeteries shall immediately pay over to or use
for such public cemetery or cemeteries a proportionate share
of the personal property tax replacement funds which the
township receives.
Any taxing district which receives an allocation based in
whole or in part upon personal property taxes which it levied
for another governmental body or school district in Cook
County in 1976 or for another governmental body or school
district in the remainder of the State in 1977 shall
immediately pay over to that governmental body or school
district the amount of personal property replacement funds
which such governmental body or school district would receive
directly under the provisions of paragraph (2) of this

SB3019 Enrolled - 131 - LRB104 20255 HLH 33706 b
Section, had it levied its own taxes.
(1) The portion of the Personal Property Tax
Replacement Fund required to be distributed as of the time
allocation is required to be made shall be the amount
available in such Fund as of the time allocation is
required to be made.
The amount available for distribution shall be the
total amount in the fund at such time minus the necessary
administrative and other authorized expenses as limited by
the appropriation and the amount determined by: (a) $2.8
million for fiscal year 1981; (b) for fiscal year 1982,
.54% of the funds distributed from the fund during the
preceding fiscal year; (c) for fiscal year 1983 through
fiscal year 1988, .54% of the funds distributed from the
fund during the preceding fiscal year less .02% of such
fund for fiscal year 1983 and less .02% of such funds for
each fiscal year thereafter; (d) for fiscal year 1989
through fiscal year 2011 no more than 105% of the actual
administrative expenses of the prior fiscal year; (e) for
fiscal year 2012 and beyond, a sufficient amount to pay
(i) stipends, additional compensation, salary
reimbursements, and other amounts directed to be paid out
of this Fund for local officials as authorized or required
by statute and (ii) the ordinary and contingent expenses
of the Property Tax Appeal Board and the expenses of the
Department of Revenue incurred in administering the

SB3019 Enrolled - 132 - LRB104 20255 HLH 33706 b
collection and distribution of moneys paid into the Fund;
(f) for fiscal years 2012 and 2013 only, a sufficient
amount to pay stipends, additional compensation, salary
reimbursements, and other amounts directed to be paid out
of this Fund for regional offices and officials as
authorized or required by statute; (g) for fiscal years
2018 through 2026 only, a sufficient amount to pay amounts
directed to be paid out of this Fund for public community
college base operating grants and local health protection
grants to certified local health departments as authorized
or required by appropriation or statute; and (h) for
fiscal year 2026 only, a sufficient amount to pay amounts
directed to be paid out of this Fund for costs associated
with the Illinois Century Network and broadband projects
as authorized or required by appropriation or statute.
Such portion of the fund shall be determined after the
transfer into the General Revenue Fund due to refunds, if
any, paid from the General Revenue Fund during the
preceding quarter. If at any time, for any reason, there
is insufficient amount in the Personal Property Tax
Replacement Fund for payments for regional offices and
officials or local officials or payment of costs of
administration or for transfers due to refunds at the end
of any particular month, the amount of such insufficiency
shall be carried over for the purposes of payments for
regional offices and officials, local officials, transfers

SB3019 Enrolled - 133 - LRB104 20255 HLH 33706 b
into the General Revenue Fund, and costs of administration
to the following month or months. Net replacement revenue
held, and defined above, shall be transferred by the
Treasurer and Comptroller to the Personal Property Tax
Replacement Fund within 10 days of such certification.
(2) Each quarterly allocation shall first be
apportioned in the following manner: 51.65% for taxing
districts in Cook County and 48.35% for taxing districts
in the remainder of the State.
The Personal Property Replacement Ratio of each taxing
district outside Cook County shall be the ratio which the Tax
Base of that taxing district bears to the Downstate Tax Base.
The Tax Base of each taxing district outside of Cook County is
the personal property tax collections for that taxing district
for the 1977 tax year. The Downstate Tax Base is the personal
property tax collections for all taxing districts in the State
outside of Cook County for the 1977 tax year. The Department of
Revenue shall have authority to review for accuracy and
completeness the personal property tax collections for each
taxing district outside Cook County for the 1977 tax year.
The Personal Property Replacement Ratio of each Cook
County taxing district shall be the ratio which the Tax Base of
that taxing district bears to the Cook County Tax Base. The Tax
Base of each Cook County taxing district is the personal
property tax collections for that taxing district for the 1976
tax year. The Cook County Tax Base is the personal property tax

SB3019 Enrolled - 134 - LRB104 20255 HLH 33706 b
collections for all taxing districts in Cook County for the
1976 tax year. The Department of Revenue shall have authority
to review for accuracy and completeness the personal property
tax collections for each taxing district within Cook County
for the 1976 tax year.
For all purposes of this Section 12, amounts paid to a
taxing district for such tax years as may be applicable by a
foreign corporation under the provisions of Section 7-202 of
the Public Utilities Act, as amended, shall be deemed to be
personal property taxes collected by such taxing district for
such tax years as may be applicable. The Director shall
determine from the Illinois Commerce Commission, for any tax
year as may be applicable, the amounts so paid by any such
foreign corporation to any and all taxing districts. The
Illinois Commerce Commission shall furnish such information to
the Director. For all purposes of this Section 12, the
Director shall deem such amounts to be collected personal
property taxes of each such taxing district for the applicable
tax year or years.
Taxing districts located both in Cook County and in one or
more other counties shall receive both a Cook County
allocation and a Downstate allocation determined in the same
way as all other taxing districts.
If any taxing district in existence on July 1, 1979 ceases
to exist, or discontinues its operations, its Tax Base shall
thereafter be deemed to be zero. If the powers, duties and

SB3019 Enrolled - 135 - LRB104 20255 HLH 33706 b
obligations of the discontinued taxing district are assumed by
another taxing district, the Tax Base of the discontinued
taxing district shall be added to the Tax Base of the taxing
district assuming such powers, duties and obligations.
If 2 or more taxing districts in existence on July 1, 1979,
or a successor or successors thereto shall consolidate into
one taxing district, the Tax Base of such consolidated taxing
district shall be the sum of the Tax Bases of each of the
taxing districts which have consolidated.
If a single taxing district in existence on July 1, 1979,
or a successor or successors thereto shall be divided into 2 or
more separate taxing districts, the tax base of the taxing
district so divided shall be allocated to each of the
resulting taxing districts in proportion to the then current
equalized assessed value of each resulting taxing district.
If a portion of the territory of a taxing district is
disconnected and annexed to another taxing district of the
same type, the Tax Base of the taxing district from which
disconnection was made shall be reduced in proportion to the
then current equalized assessed value of the disconnected
territory as compared with the then current equalized assessed
value within the entire territory of the taxing district prior
to disconnection, and the amount of such reduction shall be
added to the Tax Base of the taxing district to which
annexation is made.
If a community college district is created after July 1,

SB3019 Enrolled - 136 - LRB104 20255 HLH 33706 b
1979, beginning on January 1, 1996 (the effective date of
Public Act 89-327), its Tax Base shall be 3.5% of the sum of
the personal property tax collected for the 1977 tax year
within the territorial jurisdiction of the district.
The amounts allocated and paid to taxing districts
pursuant to the provisions of Public Act 81-1st Special
Session-1 shall be deemed to be substitute revenues for the
revenues derived from taxes imposed on personal property
pursuant to the provisions of the "Revenue Act of 1939" or "An
Act for the assessment and taxation of private car line
companies", approved July 22, 1943, as amended, or Section 414
of the Illinois Insurance Code, prior to the abolition of such
taxes and shall be used for the same purposes as the revenues
derived from ad valorem taxes on real estate.
Monies received by any taxing districts from the Personal
Property Tax Replacement Fund shall be first applied toward
payment of the proportionate amount of debt service which was
previously levied and collected from extensions against
personal property on bonds outstanding as of December 31, 1978
and next applied toward payment of the proportionate share of
the pension or retirement obligations of the taxing district
which were previously levied and collected from extensions
against personal property. For each such outstanding bond
issue, the County Clerk shall determine the percentage of the
debt service which was collected from extensions against real
estate in the taxing district for 1978 taxes payable in 1979,

SB3019 Enrolled - 137 - LRB104 20255 HLH 33706 b
as related to the total amount of such levies and collections
from extensions against both real and personal property. For
1979 and subsequent years' taxes, the County Clerk shall levy
and extend taxes against the real estate of each taxing
district which will yield the said percentage or percentages
of the debt service on such outstanding bonds. The balance of
the amount necessary to fully pay such debt service shall
constitute a first and prior lien upon the monies received by
each such taxing district through the Personal Property Tax
Replacement Fund and shall be first applied or set aside for
such purpose. In counties having fewer than 3,000,000
inhabitants, the amendments to this paragraph as made by
Public Act 81-1255 shall be first applicable to 1980 taxes to
be collected in 1981.
(Source: P.A. 103-8, eff. 6-7-23; 103-588, eff. 6-5-24; 104-2,
eff. 6-16-25.)
Section 70-20. The Illinois Coal Technology Development
Assistance Act is amended by changing Section 3 as follows:
(30 ILCS 730/3) (from Ch. 96 1/2, par. 8203)
Sec. 3. Transfers to Coal Technology Development
Assistance Fund.
(a) As soon as may be practicable after the first day of
each month, the Department of Revenue shall certify to the
Treasurer an amount equal to 1/64 of the revenue realized from

SB3019 Enrolled - 138 - LRB104 20255 HLH 33706 b
the tax imposed by the Electricity Excise Tax Law, Section 2 of
the Public Utilities Revenue Act, Section 2 of the Messages
Tax Act, and Section 2 of the Gas Revenue Tax Act, during the
preceding month. Upon receipt of the certification, the
Treasurer shall transfer the amount shown on such
certification from the General Revenue Fund to the Coal
Technology Development Assistance Fund, which is hereby
created as a special fund in the State treasury, except that no
transfer shall be made in any month in which the Fund has
reached the following balance:
(1) (Blank).
(2) (Blank).
(3) (Blank).
(4) (Blank).
(5) (Blank).
(6) Expect as otherwise provided in subsection (b),
during fiscal year 2006 and each fiscal year thereafter,
an amount equal to the sum of $10,000,000 plus additional
moneys deposited into the Coal Technology Development
Assistance Fund from the Renewable Energy Resources and
Coal Technology Development Assistance Charge under
Section 6.5 of the Renewable Energy, Energy Efficiency,
and Coal Resources Development Law of 1997.
(b) During fiscal years 2019 through 2022 only, the
Treasurer shall make no transfers from the General Revenue
Fund to the Coal Technology Development Assistance Fund.

SB3019 Enrolled - 139 - LRB104 20255 HLH 33706 b
(Source: P.A. 101-10, eff. 6-5-19; 101-636, eff. 6-10-20;
102-16, eff. 6-17-21.)
Section 70-25. The Use Tax Act is amended by changing
Sections 3-5, 3-10, and 12 as follows:
(35 ILCS 105/3-5)
Sec. 3-5. Exemptions. Use, which, on and after January 1,
2025, includes use by a lessee, of the following tangible
personal property is exempt from the tax imposed by this Act:
(1) Personal property purchased from a corporation,
society, association, foundation, institution, or
organization, other than a limited liability company, that is
organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the
personal property was not purchased by the enterprise for the
purpose of resale by the enterprise.
(2) Personal property purchased by a not-for-profit
Illinois county fair association for use in conducting,
operating, or promoting the county fair.
(3) Personal property purchased by a not-for-profit arts
or cultural organization that establishes, by proof required
by the Department by rule, that it has received an exemption
under Section 501(c)(3) of the Internal Revenue Code and that
is organized and operated primarily for the presentation or
support of arts or cultural programming, activities, or

SB3019 Enrolled - 140 - LRB104 20255 HLH 33706 b
services. These organizations include, but are not limited to,
music and dramatic arts organizations such as symphony
orchestras and theatrical groups, arts and cultural service
organizations, local arts councils, visual arts organizations,
and media arts organizations. On and after July 1, 2001 (the
effective date of Public Act 92-35), however, an entity
otherwise eligible for this exemption shall not make tax-free
purchases unless it has an active identification number issued
by the Department.
(4) Except as otherwise provided in this Act, personal
property purchased by a governmental body, by a corporation,
society, association, foundation, or institution organized and
operated exclusively for charitable, religious, or educational
purposes, or by a not-for-profit corporation, society,
association, foundation, institution, or organization that has
no compensated officers or employees and that is organized and
operated primarily for the recreation of persons 55 years of
age or older. A limited liability company may qualify for the
exemption under this paragraph only if the limited liability
company is organized and operated exclusively for educational
purposes. On and after July 1, 1987, however, no entity
otherwise eligible for this exemption shall make tax-free
purchases unless it has an active exemption identification
number issued by the Department.
(5) Until July 1, 2003, a passenger car that is a
replacement vehicle to the extent that the purchase price of

SB3019 Enrolled - 141 - LRB104 20255 HLH 33706 b
the car is subject to the Replacement Vehicle Tax.
(6) Until July 1, 2003 and beginning again on September 1,
2004 through August 30, 2014, graphic arts machinery and
equipment, including repair and replacement parts, both new
and used, and including that manufactured on special order,
certified by the purchaser to be used primarily for graphic
arts production, and including machinery and equipment
purchased for lease. Equipment includes chemicals or chemicals
acting as catalysts but only if the chemicals or chemicals
acting as catalysts effect a direct and immediate change upon
a graphic arts product. Beginning on July 1, 2017, graphic
arts machinery and equipment is included in the manufacturing
and assembling machinery and equipment exemption under
paragraph (18).
(7) Farm chemicals.
(8) Legal tender, currency, medallions, or gold or silver
coinage issued by the State of Illinois, the government of the
United States of America, or the government of any foreign
country, and bullion.
(9) Personal property purchased from a teacher-sponsored
student organization affiliated with an elementary or
secondary school located in Illinois.
(10) A motor vehicle that is used for automobile renting,
as defined in the Automobile Renting Occupation and Use Tax
Act.
(11) Farm machinery and equipment, both new and used,

SB3019 Enrolled - 142 - LRB104 20255 HLH 33706 b
including that manufactured on special order, certified by the
purchaser to be used primarily for production agriculture or
State or federal agricultural programs, including individual
replacement parts for the machinery and equipment, including
machinery and equipment purchased for lease, and including
implements of husbandry defined in Section 1-130 of the
Illinois Vehicle Code, farm machinery and agricultural
chemical and fertilizer spreaders, and nurse wagons required
to be registered under Section 3-809 of the Illinois Vehicle
Code, but excluding other motor vehicles required to be
registered under the Illinois Vehicle Code. Horticultural
polyhouses or hoop houses used for propagating, growing, or
overwintering plants shall be considered farm machinery and
equipment under this item (11). Agricultural chemical tender
tanks and dry boxes shall include units sold separately from a
motor vehicle required to be licensed and units sold mounted
on a motor vehicle required to be licensed if the selling price
of the tender is separately stated.
Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be
installed on farm machinery and equipment, including, but not
limited to, tractors, harvesters, sprayers, planters, seeders,
or spreaders. Precision farming equipment includes, but is not
limited to, soil testing sensors, computers, monitors,
software, global positioning and mapping systems, and other
such equipment.

SB3019 Enrolled - 143 - LRB104 20255 HLH 33706 b
Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in the
computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not limited
to, the collection, monitoring, and correlation of animal and
crop data for the purpose of formulating animal diets and
agricultural chemicals.
Beginning on January 1, 2024, farm machinery and equipment
also includes electrical power generation equipment used
primarily for production agriculture.
This item (11) is exempt from the provisions of Section
3-90.
(12) Until June 30, 2013, fuel and petroleum products sold
to or used by an air common carrier, certified by the carrier
to be used for consumption, shipment, or storage in the
conduct of its business as an air common carrier, for a flight
destined for or returning from a location or locations outside
the United States without regard to previous or subsequent
domestic stopovers.
Beginning July 1, 2013, fuel and petroleum products sold
to or used by an air carrier, certified by the carrier to be
used for consumption, shipment, or storage in the conduct of
its business as an air common carrier, for a flight that (i) is
engaged in foreign trade or is engaged in trade between the
United States and any of its possessions and (ii) transports
at least one individual or package for hire from the city of

SB3019 Enrolled - 144 - LRB104 20255 HLH 33706 b
origination to the city of final destination on the same
aircraft, without regard to a change in the flight number of
that aircraft.
(13) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of
food and beverages purchased at retail from a retailer, to the
extent that the proceeds of the service charge are in fact
turned over as tips or as a substitute for tips to the
employees who participate directly in preparing, serving,
hosting or cleaning up the food or beverage function with
respect to which the service charge is imposed.
(14) Until July 1, 2003, oil field exploration, drilling,
and production equipment, including (i) rigs and parts of
rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
pipe and tubular goods, including casing and drill strings,
(iii) pumps and pump-jack units, (iv) storage tanks and flow
lines, (v) any individual replacement part for oil field
exploration, drilling, and production equipment, and (vi)
machinery and equipment purchased for lease; but excluding
motor vehicles required to be registered under the Illinois
Vehicle Code.
(15) Photoprocessing machinery and equipment, including
repair and replacement parts, both new and used, including
that manufactured on special order, certified by the purchaser
to be used primarily for photoprocessing, and including
photoprocessing machinery and equipment purchased for lease.

SB3019 Enrolled - 145 - LRB104 20255 HLH 33706 b
(16) Until July 1, 2028, coal and aggregate exploration,
mining, off-highway hauling, processing, maintenance, and
reclamation equipment, including replacement parts and
equipment, and including equipment purchased for lease, but
excluding motor vehicles required to be registered under the
Illinois Vehicle Code. The changes made to this Section by
Public Act 97-767 apply on and after July 1, 2003, but no claim
for credit or refund is allowed on or after August 16, 2013
(the effective date of Public Act 98-456) for such taxes paid
during the period beginning July 1, 2003 and ending on August
16, 2013 (the effective date of Public Act 98-456).
(17) Until July 1, 2003, distillation machinery and
equipment, sold as a unit or kit, assembled or installed by the
retailer, certified by the user to be used only for the
production of ethyl alcohol that will be used for consumption
as motor fuel or as a component of motor fuel for the personal
use of the user, and not subject to sale or resale.
(18) Manufacturing and assembling machinery and equipment
used primarily in the process of manufacturing or assembling
tangible personal property for wholesale or retail sale or
lease, whether that sale or lease is made directly by the
manufacturer or by some other person, whether the materials
used in the process are owned by the manufacturer or some other
person, or whether that sale or lease is made apart from or as
an incident to the seller's engaging in the service occupation
of producing machines, tools, dies, jigs, patterns, gauges, or

SB3019 Enrolled - 146 - LRB104 20255 HLH 33706 b
other similar items of no commercial value on special order
for a particular purchaser. The exemption provided by this
paragraph (18) includes production related tangible personal
property, as defined in Section 3-50, purchased on or after
July 1, 2019. The exemption provided by this paragraph (18)
does not include machinery and equipment used in (i) the
generation of electricity for wholesale or retail sale; (ii)
the generation or treatment of natural or artificial gas for
wholesale or retail sale that is delivered to customers
through pipes, pipelines, or mains; or (iii) the treatment of
water for wholesale or retail sale that is delivered to
customers through pipes, pipelines, or mains. The provisions
of Public Act 98-583 are declaratory of existing law as to the
meaning and scope of this exemption. Beginning on July 1,
2017, the exemption provided by this paragraph (18) includes,
but is not limited to, graphic arts machinery and equipment,
as defined in paragraph (6) of this Section.
(19) Personal property delivered to a purchaser or
purchaser's donee inside Illinois when the purchase order for
that personal property was received by a florist located
outside Illinois who has a florist located inside Illinois
deliver the personal property.
(20) Semen used for artificial insemination of livestock
for direct agricultural production.
(21) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club

SB3019 Enrolled - 147 - LRB104 20255 HLH 33706 b
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes. This item (21) is exempt from the
provisions of Section 3-90, and the exemption provided for
under this item (21) applies for all periods beginning May 30,
1995, but no claim for credit or refund is allowed on or after
January 1, 2008 for such taxes paid during the period
beginning May 30, 2000 and ending on January 1, 2008.
(22) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a
lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the time the lessor would
otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act. If the equipment is leased
in a manner that does not qualify for this exemption or is used
in any other non-exempt manner, the lessor shall be liable for
the tax imposed under this Act or the Service Use Tax Act, as
the case may be, based on the fair market value of the property
at the time the non-qualifying use occurs. No lessor shall
collect or attempt to collect an amount (however designated)
that purports to reimburse that lessor for the tax imposed by
this Act or the Service Use Tax Act, as the case may be, if the

SB3019 Enrolled - 148 - LRB104 20255 HLH 33706 b
tax has not been paid by the lessor. If a lessor improperly
collects any such amount from the lessee, the lessee shall
have a legal right to claim a refund of that amount from the
lessor. If, however, that amount is not refunded to the lessee
for any reason, the lessor is liable to pay that amount to the
Department.
(23) Personal property purchased by a lessor who leases
the property, under a lease of one year or longer executed or
in effect at the time the lessor would otherwise be subject to
the tax imposed by this Act, to a governmental body that has
been issued an active sales tax exemption identification
number by the Department under Section 1g of the Retailers'
Occupation Tax Act. If the property is leased in a manner that
does not qualify for this exemption or used in any other
non-exempt manner, the lessor shall be liable for the tax
imposed under this Act or the Service Use Tax Act, as the case
may be, based on the fair market value of the property at the
time the non-qualifying use occurs. No lessor shall collect or
attempt to collect an amount (however designated) that
purports to reimburse that lessor for the tax imposed by this
Act or the Service Use Tax Act, as the case may be, if the tax
has not been paid by the lessor. If a lessor improperly
collects any such amount from the lessee, the lessee shall
have a legal right to claim a refund of that amount from the
lessor. If, however, that amount is not refunded to the lessee
for any reason, the lessor is liable to pay that amount to the

SB3019 Enrolled - 149 - LRB104 20255 HLH 33706 b
Department.
(24) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated
for disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to a
corporation, society, association, foundation, or institution
that has been issued a sales tax exemption identification
number by the Department that assists victims of the disaster
who reside within the declared disaster area.
(25) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in
the performance of infrastructure repairs in this State,
including, but not limited to, municipal roads and streets,
access roads, bridges, sidewalks, waste disposal systems,
water and sewer line extensions, water distribution and
purification facilities, storm water drainage and retention
facilities, and sewage treatment facilities, resulting from a
State or federally declared disaster in Illinois or bordering
Illinois when such repairs are initiated on facilities located
in the declared disaster area within 6 months after the
disaster.
(26) Beginning July 1, 1999, game or game birds purchased
at a "game breeding and hunting preserve area" as that term is

SB3019 Enrolled - 150 - LRB104 20255 HLH 33706 b
used in the Wildlife Code. This paragraph is exempt from the
provisions of Section 3-90.
(27) A motor vehicle, as that term is defined in Section
1-146 of the Illinois Vehicle Code, that is donated to a
corporation, limited liability company, society, association,
foundation, or institution that is determined by the
Department to be organized and operated exclusively for
educational purposes. For purposes of this exemption, "a
corporation, limited liability company, society, association,
foundation, or institution organized and operated exclusively
for educational purposes" means all tax-supported public
schools, private schools that offer systematic instruction in
useful branches of learning by methods common to public
schools and that compare favorably in their scope and
intensity with the course of study presented in tax-supported
schools, and vocational or technical schools or institutes
organized and operated exclusively to provide a course of
study of not less than 6 weeks duration and designed to prepare
individuals to follow a trade or to pursue a manual,
technical, mechanical, industrial, business, or commercial
occupation.
(28) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for the
benefit of a public or private elementary or secondary school,
a group of those schools, or one or more school districts if
the events are sponsored by an entity recognized by the school

SB3019 Enrolled - 151 - LRB104 20255 HLH 33706 b
district that consists primarily of volunteers and includes
parents and teachers of the school children. This paragraph
does not apply to fundraising events (i) for the benefit of
private home instruction or (ii) for which the fundraising
entity purchases the personal property sold at the events from
another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that profits
from the sale to the fundraising entity. This paragraph is
exempt from the provisions of Section 3-90.
(29) Beginning January 1, 2000 and through December 31,
2001, new or used automatic vending machines that prepare and
serve hot food and beverages, including coffee, soup, and
other items, and replacement parts for these machines.
Beginning January 1, 2002 and through June 30, 2003, machines
and parts for machines used in commercial, coin-operated
amusement and vending business if a use or occupation tax is
paid on the gross receipts derived from the use of the
commercial, coin-operated amusement and vending machines. This
paragraph is exempt from the provisions of Section 3-90.
(30) Beginning January 1, 2001 and through June 30, 2016,
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
soft drinks, and food that has been prepared for immediate
consumption) and prescription and nonprescription medicines,
drugs, medical appliances, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human

SB3019 Enrolled - 152 - LRB104 20255 HLH 33706 b
use, when purchased for use by a person receiving medical
assistance under Article V of the Illinois Public Aid Code who
resides in a licensed long-term care facility, as defined in
the Nursing Home Care Act, or in a licensed facility as defined
in the ID/DD Community Care Act, the MC/DD Act, or the
Specialized Mental Health Rehabilitation Act of 2013.
(31) Beginning on August 2, 2001 (the effective date of
Public Act 92-227), computers and communications equipment
utilized for any hospital purpose and equipment used in the
diagnosis, analysis, or treatment of hospital patients
purchased by a lessor who leases the equipment, under a lease
of one year or longer executed or in effect at the time the
lessor would otherwise be subject to the tax imposed by this
Act, to a hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act. If the equipment is leased
in a manner that does not qualify for this exemption or is used
in any other nonexempt manner, the lessor shall be liable for
the tax imposed under this Act or the Service Use Tax Act, as
the case may be, based on the fair market value of the property
at the time the nonqualifying use occurs. No lessor shall
collect or attempt to collect an amount (however designated)
that purports to reimburse that lessor for the tax imposed by
this Act or the Service Use Tax Act, as the case may be, if the
tax has not been paid by the lessor. If a lessor improperly
collects any such amount from the lessee, the lessee shall

SB3019 Enrolled - 153 - LRB104 20255 HLH 33706 b
have a legal right to claim a refund of that amount from the
lessor. If, however, that amount is not refunded to the lessee
for any reason, the lessor is liable to pay that amount to the
Department. This paragraph is exempt from the provisions of
Section 3-90.
(32) Beginning on August 2, 2001 (the effective date of
Public Act 92-227), personal property purchased by a lessor
who leases the property, under a lease of one year or longer
executed or in effect at the time the lessor would otherwise be
subject to the tax imposed by this Act, to a governmental body
that has been issued an active sales tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act. If the property is leased
in a manner that does not qualify for this exemption or used in
any other nonexempt manner, the lessor shall be liable for the
tax imposed under this Act or the Service Use Tax Act, as the
case may be, based on the fair market value of the property at
the time the nonqualifying use occurs. No lessor shall collect
or attempt to collect an amount (however designated) that
purports to reimburse that lessor for the tax imposed by this
Act or the Service Use Tax Act, as the case may be, if the tax
has not been paid by the lessor. If a lessor improperly
collects any such amount from the lessee, the lessee shall
have a legal right to claim a refund of that amount from the
lessor. If, however, that amount is not refunded to the lessee
for any reason, the lessor is liable to pay that amount to the

SB3019 Enrolled - 154 - LRB104 20255 HLH 33706 b
Department. This paragraph is exempt from the provisions of
Section 3-90.
(33) On and after July 1, 2003 and through June 30, 2004,
the use in this State of motor vehicles of the second division
with a gross vehicle weight in excess of 8,000 pounds and that
are subject to the commercial distribution fee imposed under
Section 3-815.1 of the Illinois Vehicle Code. Beginning on
July 1, 2004 and through June 30, 2005, the use in this State
of motor vehicles of the second division: (i) with a gross
vehicle weight rating in excess of 8,000 pounds; (ii) that are
subject to the commercial distribution fee imposed under
Section 3-815.1 of the Illinois Vehicle Code; and (iii) that
are primarily used for commercial purposes. Through June 30,
2005, this exemption applies to repair and replacement parts
added after the initial purchase of such a motor vehicle if
that motor vehicle is used in a manner that would qualify for
the rolling stock exemption otherwise provided for in this
Act. For purposes of this paragraph, the term "used for
commercial purposes" means the transportation of persons or
property in furtherance of any commercial or industrial
enterprise, whether for-hire or not.
(34) Beginning January 1, 2008, tangible personal property
used in the construction or maintenance of a community water
supply, as defined under Section 3.145 of the Environmental
Protection Act, that is operated by a not-for-profit
corporation that holds a valid water supply permit issued

SB3019 Enrolled - 155 - LRB104 20255 HLH 33706 b
under Title IV of the Environmental Protection Act. This
paragraph is exempt from the provisions of Section 3-90.
(35) Beginning January 1, 2010 and continuing through
December 31, 2029, materials, parts, equipment, components,
and furnishings incorporated into or upon an aircraft as part
of the modification, refurbishment, completion, replacement,
repair, or maintenance of the aircraft. This exemption
includes consumable supplies used in the modification,
refurbishment, completion, replacement, repair, and
maintenance of aircraft. However, until January 1, 2024, this
exemption excludes any materials, parts, equipment,
components, and consumable supplies used in the modification,
replacement, repair, and maintenance of aircraft engines or
power plants, whether such engines or power plants are
installed or uninstalled upon any such aircraft. "Consumable
supplies" include, but are not limited to, adhesive, tape,
sandpaper, general purpose lubricants, cleaning solution,
latex gloves, and protective films.
Beginning January 1, 2010 and continuing through December
31, 2023, this exemption applies only to the use of qualifying
tangible personal property by persons who modify, refurbish,
complete, repair, replace, or maintain aircraft and who (i)
hold an Air Agency Certificate and are empowered to operate an
approved repair station by the Federal Aviation
Administration, (ii) have a Class IV Rating, and (iii) conduct
operations in accordance with Part 145 of the Federal Aviation

SB3019 Enrolled - 156 - LRB104 20255 HLH 33706 b
Regulations. From January 1, 2024 through December 31, 2029,
this exemption applies only to the use of qualifying tangible
personal property by: (A) persons who modify, refurbish,
complete, repair, replace, or maintain aircraft and who (i)
hold an Air Agency Certificate and are empowered to operate an
approved repair station by the Federal Aviation
Administration, (ii) have a Class IV Rating, and (iii) conduct
operations in accordance with Part 145 of the Federal Aviation
Regulations; and (B) persons who engage in the modification,
replacement, repair, and maintenance of aircraft engines or
power plants without regard to whether or not those persons
meet the qualifications of item (A).
The exemption does not include aircraft operated by a
commercial air carrier providing scheduled passenger air
service pursuant to authority issued under Part 121 or Part
129 of the Federal Aviation Regulations. The changes made to
this paragraph (35) by Public Act 98-534 are declarative of
existing law. It is the intent of the General Assembly that the
exemption under this paragraph (35) applies continuously from
January 1, 2010 through December 31, 2024; however, no claim
for credit or refund is allowed for taxes paid as a result of
the disallowance of this exemption on or after January 1, 2015
and prior to February 5, 2020 (the effective date of Public Act
101-629).
(36) Tangible personal property purchased by a
public-facilities corporation, as described in Section

SB3019 Enrolled - 157 - LRB104 20255 HLH 33706 b
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall, but
only if the legal title to the municipal convention hall is
transferred to the municipality without any further
consideration by or on behalf of the municipality at the time
of the completion of the municipal convention hall or upon the
retirement or redemption of any bonds or other debt
instruments issued by the public-facilities corporation in
connection with the development of the municipal convention
hall. This exemption includes existing public-facilities
corporations as provided in Section 11-65-25 of the Illinois
Municipal Code. This paragraph is exempt from the provisions
of Section 3-90.
(37) Beginning January 1, 2017 and through December 31,
2026, menstrual pads, tampons, and menstrual cups.
(38) Merchandise that is subject to the Rental Purchase
Agreement Occupation and Use Tax. The purchaser must certify
that the item is purchased to be rented subject to a
rental-purchase agreement, as defined in the Rental-Purchase
Agreement Act, and provide proof of registration under the
Rental Purchase Agreement Occupation and Use Tax Act. This
paragraph is exempt from the provisions of Section 3-90.
(39) Tangible personal property purchased by a purchaser
who is exempt from the tax imposed by this Act by operation of
federal law. This paragraph is exempt from the provisions of
Section 3-90.

SB3019 Enrolled - 158 - LRB104 20255 HLH 33706 b
(40) Qualified tangible personal property used in the
construction or operation of a data center that has been
granted a certificate of exemption by the Department of
Commerce and Economic Opportunity, whether that tangible
personal property is purchased by the owner, operator, or
tenant of the data center or by a contractor or subcontractor
of the owner, operator, or tenant. Data centers that would
have qualified for a certificate of exemption prior to January
1, 2020 had Public Act 101-31 been in effect may apply for and
obtain an exemption for subsequent purchases of computer
equipment or enabling software purchased or leased to upgrade,
supplement, or replace computer equipment or enabling software
purchased or leased in the original investment that would have
qualified.
The Department of Commerce and Economic Opportunity shall
grant a certificate of exemption under this item (40) to
qualified data centers as defined by Section 605-1025 of the
Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
For the purposes of this item (40):
"Data center" means a building or a series of
buildings rehabilitated or constructed to house working
servers in one physical location or multiple sites within
the State of Illinois.
"Qualified tangible personal property" means:
electrical systems and equipment; climate control and

SB3019 Enrolled - 159 - LRB104 20255 HLH 33706 b
chilling equipment and systems; mechanical systems and
equipment; monitoring and secure systems; emergency
generators; hardware; computers; servers; data storage
devices; network connectivity equipment; racks; cabinets;
telecommunications cabling infrastructure; raised floor
systems; peripheral components or systems; software;
mechanical, electrical, or plumbing systems; battery
systems; cooling systems and towers; temperature control
systems; other cabling; and other data center
infrastructure equipment and systems necessary to operate
qualified tangible personal property, including fixtures;
and component parts of any of the foregoing, including
installation, maintenance, repair, refurbishment, and
replacement of qualified tangible personal property to
generate, transform, transmit, distribute, or manage
electricity necessary to operate qualified tangible
personal property; and all other tangible personal
property that is essential to the operations of a computer
data center. The term "qualified tangible personal
property" also includes building materials physically
incorporated into the qualifying data center. To document
the exemption allowed under this Section, the retailer
must obtain from the purchaser a copy of the certificate
of eligibility issued by the Department of Commerce and
Economic Opportunity.
This item (40) is exempt from the provisions of Section

SB3019 Enrolled - 160 - LRB104 20255 HLH 33706 b
3-90.
(41) Beginning July 1, 2022, breast pumps, breast pump
collection and storage supplies, and breast pump kits. This
item (41) is exempt from the provisions of Section 3-90. As
used in this item (41):
"Breast pump" means an electrically controlled or
manually controlled pump device designed or marketed to be
used to express milk from a human breast during lactation,
including the pump device and any battery, AC adapter, or
other power supply unit that is used to power the pump
device and is packaged and sold with the pump device at the
time of sale.
"Breast pump collection and storage supplies" means
items of tangible personal property designed or marketed
to be used in conjunction with a breast pump to collect
milk expressed from a human breast and to store collected
milk until it is ready for consumption.
"Breast pump collection and storage supplies"
includes, but is not limited to: breast shields and breast
shield connectors; breast pump tubes and tubing adapters;
breast pump valves and membranes; backflow protectors and
backflow protector adaptors; bottles and bottle caps
specific to the operation of the breast pump; and breast
milk storage bags.
"Breast pump collection and storage supplies" does not
include: (1) bottles and bottle caps not specific to the

SB3019 Enrolled - 161 - LRB104 20255 HLH 33706 b
operation of the breast pump; (2) breast pump travel bags
and other similar carrying accessories, including ice
packs, labels, and other similar products; (3) breast pump
cleaning supplies; (4) nursing bras, bra pads, breast
shells, and other similar products; and (5) creams,
ointments, and other similar products that relieve
breastfeeding-related symptoms or conditions of the
breasts or nipples, unless sold as part of a breast pump
kit that is pre-packaged by the breast pump manufacturer
or distributor.
"Breast pump kit" means a kit that: (1) contains no
more than a breast pump, breast pump collection and
storage supplies, a rechargeable battery for operating the
breast pump, a breastmilk cooler, bottle stands, ice
packs, and a breast pump carrying case; and (2) is
pre-packaged as a breast pump kit by the breast pump
manufacturer or distributor.
(42) Tangible personal property sold by or on behalf of
the State Treasurer pursuant to the Revised Uniform Unclaimed
Property Act. This item (42) is exempt from the provisions of
Section 3-90.
(43) Beginning on January 1, 2024, tangible personal
property purchased by an active duty member of the armed
forces of the United States who presents valid military
identification and purchases the property using a form of
payment where the federal government is the payor. The member

SB3019 Enrolled - 162 - LRB104 20255 HLH 33706 b
of the armed forces must complete, at the point of sale, a form
prescribed by the Department of Revenue documenting that the
transaction is eligible for the exemption under this
paragraph. Retailers must keep the form as documentation of
the exemption in their records for a period of not less than 6
years. "Armed forces of the United States" means the United
States Army, Navy, Air Force, Space Force, Marine Corps, or
Coast Guard. This paragraph is exempt from the provisions of
Section 3-90.
(44) Beginning July 1, 2024, home-delivered meals provided
to Medicare or Medicaid recipients when payment is made by an
intermediary, such as a Medicare Administrative Contractor, a
Managed Care Organization, or a Medicare Advantage
Organization, pursuant to a government contract. This item
(44) is exempt from the provisions of Section 3-90.
(45) Beginning on January 1, 2026, as further defined in
Section 3-10, food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic liquor taxable under Section 8-1 of the Liquor
Control Act of 1934 beverages, food consisting of or infused
with adult use cannabis, soft drinks, candy, and food that has
been prepared for immediate consumption). This item (45) is
exempt from the provisions of Section 3-90.
(46) Use by the lessee of the following leased tangible
personal property:
(1) software transferred subject to a license that

SB3019 Enrolled - 163 - LRB104 20255 HLH 33706 b
meets the following requirements:
(A) it is evidenced by a written agreement signed
by the licensor and the customer;
(i) an electronic agreement in which the
customer accepts the license by means of an
electronic signature that is verifiable and can be
authenticated and is attached to or made part of
the license will comply with this requirement;
(ii) a license agreement in which the customer
electronically accepts the terms by clicking "I
agree" does not comply with this requirement;
(B) it restricts the customer's duplication and
use of the software;
(C) it prohibits the customer from licensing,
sublicensing, or transferring the software to a third
party (except to a related party) without the
permission and continued control of the licensor;
(D) the licensor has a policy of providing another
copy at minimal or no charge if the customer loses or
damages the software, or of permitting the licensee to
make and keep an archival copy, and such policy is
either stated in the license agreement, supported by
the licensor's books and records, or supported by a
notarized statement made under penalties of perjury by
the licensor; and
(E) the customer must destroy or return all copies

SB3019 Enrolled - 164 - LRB104 20255 HLH 33706 b
of the software to the licensor at the end of the
license period; this provision is deemed to be met, in
the case of a perpetual license, without being set
forth in the license agreement; and
(2) property that is subject to a tax on lease
receipts imposed by a home rule unit of local government
if the ordinance imposing that tax was adopted prior to
January 1, 2023.
(Source: P.A. 103-9, Article 5, Section 5-5, eff. 6-7-23;
103-9, Article 15, Section 15-5, eff. 6-7-23; 103-154, eff.
6-30-23; 103-384, eff. 1-1-24; 103-592, eff. 1-1-25; 103-605,
eff. 7-1-24; 103-643, eff. 7-1-24; 103-746, eff. 1-1-25;
103-781, eff. 8-5-24; 104-417, eff. 8-15-25.)
(35 ILCS 105/3-10) from Ch. 120, par. 439.33-10
Sec. 3-10. Rate of tax. Unless otherwise provided in this
Section, the tax imposed by this Act is at the rate of 6.25% of
either the selling price or the fair market value, if any, of
the tangible personal property, which, on and after January 1,
2025, includes leases of tangible personal property. In all
cases where property functionally used or consumed is the same
as the property that was purchased at retail, then the tax is
imposed on the selling price of the property. In all cases
where property functionally used or consumed is a by-product
or waste product that has been refined, manufactured, or
produced from property purchased at retail, then the tax is

SB3019 Enrolled - 165 - LRB104 20255 HLH 33706 b
imposed on the lower of the fair market value, if any, of the
specific property so used in this State or on the selling price
of the property purchased at retail. For purposes of this
Section "fair market value" means the price at which property
would change hands between a willing buyer and a willing
seller, neither being under any compulsion to buy or sell and
both having reasonable knowledge of the relevant facts. The
fair market value shall be established by Illinois sales by
the taxpayer of the same property as that functionally used or
consumed, or if there are no such sales by the taxpayer, then
comparable sales or purchases of property of like kind and
character in Illinois.
Beginning on July 1, 2000 and through December 31, 2000,
with respect to motor fuel, as defined in Section 1.1 of the
Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
the Use Tax Act, the tax is imposed at the rate of 1.25%.
Beginning on August 6, 2010 through August 15, 2010, and
beginning again on August 5, 2022 through August 14, 2022,
with respect to sales tax holiday items as defined in Section
3-6 of this Act, the tax is imposed at the rate of 1.25%.
With respect to gasohol, the tax imposed by this Act
applies to (i) 70% of the proceeds of sales made on or after
January 1, 1990, and before July 1, 2003, (ii) 80% of the
proceeds of sales made on or after July 1, 2003 and on or
before July 1, 2017, (iii) 100% of the proceeds of sales made
after July 1, 2017 and prior to January 1, 2024, (iv) 90% of

SB3019 Enrolled - 166 - LRB104 20255 HLH 33706 b
the proceeds of sales made on or after January 1, 2024 and on
or before December 31, 2028, and (v) 100% of the proceeds of
sales made after December 31, 2028. If, at any time, however,
the tax under this Act on sales of gasohol is imposed at the
rate of 1.25%, then the tax imposed by this Act applies to 100%
of the proceeds of sales of gasohol made during that time.
With respect to mid-range ethanol blends, the tax imposed
by this Act applies to (i) 80% of the proceeds of sales made on
or after January 1, 2024 and on or before December 31, 2028 and
(ii) 100% of the proceeds of sales made thereafter. If, at any
time, however, the tax under this Act on sales of mid-range
ethanol blends is imposed at the rate of 1.25%, then the tax
imposed by this Act applies to 100% of the proceeds of sales of
mid-range ethanol blends made during that time.
With respect to majority blended ethanol fuel, the tax
imposed by this Act does not apply to the proceeds of sales
made on or after July 1, 2003 and on or before December 31,
2028 but applies to 100% of the proceeds of sales made
thereafter.
With respect to biodiesel blends with no less than 1% and
no more than 10% biodiesel, the tax imposed by this Act applies
to (i) 80% of the proceeds of sales made on or after July 1,
2003 and on or before December 31, 2018 and (ii) 100% of the
proceeds of sales made after December 31, 2018 and before
January 1, 2024. On and after January 1, 2024 and on or before
December 31, 2030, the taxation of biodiesel, renewable

SB3019 Enrolled - 167 - LRB104 20255 HLH 33706 b
diesel, and biodiesel blends shall be as provided in Section
3-5.1. If, at any time, however, the tax under this Act on
sales of biodiesel blends with no less than 1% and no more than
10% biodiesel is imposed at the rate of 1.25%, then the tax
imposed by this Act applies to 100% of the proceeds of sales of
biodiesel blends with no less than 1% and no more than 10%
biodiesel made during that time.
With respect to biodiesel and biodiesel blends with more
than 10% but no more than 99% biodiesel, the tax imposed by
this Act does not apply to the proceeds of sales made on or
after July 1, 2003 and on or before December 31, 2023. On and
after January 1, 2024 and on or before December 31, 2030, the
taxation of biodiesel, renewable diesel, and biodiesel blends
shall be as provided in Section 3-5.1.
Until July 1, 2022 and from July 1, 2023 through December
31, 2025, with respect to food for human consumption that is to
be consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption), the tax is imposed at the rate of 1%.
Beginning on July 1, 2022 and until July 1, 2023, with respect
to food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
food consisting of or infused with adult use cannabis, soft
drinks, and food that has been prepared for immediate
consumption), the tax is imposed at the rate of 0%. On and

SB3019 Enrolled - 168 - LRB104 20255 HLH 33706 b
after January 1, 2026, food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic liquor taxable under Section 8-1 of the Liquor
Control Act of 1934 beverages, food consisting of or infused
with adult use cannabis, soft drinks, candy, and food that has
been prepared for immediate consumption) is exempt from the
tax imposed by this Act.
With respect to prescription and nonprescription
medicines, drugs, medical appliances, products classified as
Class III medical devices by the United States Food and Drug
Administration that are used for cancer treatment pursuant to
a prescription, as well as any accessories and components
related to those devices, modifications to a motor vehicle for
the purpose of rendering it usable by a person with a
disability, and insulin, blood sugar testing materials,
syringes, and needles used by human diabetics, the tax is
imposed at the rate of 1%. For the purposes of this Section,
until September 1, 2009: the term "soft drinks" means any
complete, finished, ready-to-use, non-alcoholic drink, whether
carbonated or not, including, but not limited to, soda water,
cola, fruit juice, vegetable juice, carbonated water, and all
other preparations commonly known as soft drinks of whatever
kind or description that are contained in any closed or sealed
bottle, can, carton, or container, regardless of size; but
"soft drinks" does not include coffee, tea, non-carbonated
water, infant formula, milk or milk products as defined in the

SB3019 Enrolled - 169 - LRB104 20255 HLH 33706 b
Grade A Pasteurized Milk and Milk Products Act, or drinks
containing 50% or more natural fruit or vegetable juice.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "soft drinks" means non-alcoholic
beverages that contain natural or artificial sweeteners. "Soft
drinks" does not include beverages that contain milk or milk
products, soy, rice or similar milk substitutes, or greater
than 50% of vegetable or fruit juice by volume.
Until August 1, 2009, and notwithstanding any other
provisions of this Act, "food for human consumption that is to
be consumed off the premises where it is sold" includes all
food sold through a vending machine, except soft drinks and
food products that are dispensed hot from a vending machine,
regardless of the location of the vending machine. Beginning
August 1, 2009, and notwithstanding any other provisions of
this Act, "food for human consumption that is to be consumed
off the premises where it is sold" includes all food sold
through a vending machine, except soft drinks, candy, and food
products that are dispensed hot from a vending machine,
regardless of the location of the vending machine.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "food for human consumption that
is to be consumed off the premises where it is sold" does not
include candy. For purposes of this Section, "candy" means a
preparation of sugar, honey, or other natural or artificial
sweeteners in combination with chocolate, fruits, nuts or

SB3019 Enrolled - 170 - LRB104 20255 HLH 33706 b
other ingredients or flavorings in the form of bars, drops, or
pieces. "Candy" does not include any preparation that contains
flour or requires refrigeration.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "nonprescription medicines and
drugs" does not include grooming and hygiene products. For
purposes of this Section, "grooming and hygiene products"
includes, but is not limited to, soaps and cleaning solutions,
shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
lotions and screens, unless those products are available by
prescription only, regardless of whether the products meet the
definition of "over-the-counter-drugs". For the purposes of
this paragraph, "over-the-counter-drug" means a drug for human
use that contains a label that identifies the product as a drug
as required by 21 CFR 201.66. The "over-the-counter-drug"
label includes:
(A) a "Drug Facts" panel; or
(B) a statement of the "active ingredient(s)" with a
list of those ingredients contained in the compound,
substance or preparation.
Beginning on January 1, 2014 (the effective date of Public
Act 98-122), "prescription and nonprescription medicines and
drugs" includes medical cannabis purchased from a registered
dispensing organization under the Compassionate Use of Medical
Cannabis Program Act.
As used in this Section, "adult use cannabis" means

SB3019 Enrolled - 171 - LRB104 20255 HLH 33706 b
cannabis subject to tax under the Cannabis Cultivation
Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
and does not include cannabis subject to tax under the
Compassionate Use of Medical Cannabis Program Act.
If the property that is purchased at retail from a
retailer is acquired outside Illinois and used outside
Illinois before being brought to Illinois for use here and is
taxable under this Act, the "selling price" on which the tax is
computed shall be reduced by an amount that represents a
reasonable allowance for depreciation for the period of prior
out-of-state use. No depreciation is allowed in cases where
the tax under this Act is imposed on lease receipts.
(Source: P.A. 103-9, eff. 6-7-23; 103-154, eff. 6-30-23;
103-592, eff. 1-1-25; 103-781, eff. 8-5-24; 104-417, eff.
8-15-25.)
(35 ILCS 105/12) (from Ch. 120, par. 439.12)
Sec. 12. Applicability of Retailers' Occupation Tax Act
and Uniform Penalty and Interest Act. All of the provisions of
Sections 1d, 1e, 1f, 1i, 1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12,
2-29, 2-54, 2a, 2b, 2c, 3, 4 (except that the time limitation
provisions shall run from the date when the tax is due rather
than from the date when gross receipts are received), 5
(except that the time limitation provisions on the issuance of
notices of tax liability shall run from the date when the tax
is due rather than from the date when gross receipts are

SB3019 Enrolled - 172 - LRB104 20255 HLH 33706 b
received and except that in the case of a failure to file a
return required by this Act, no notice of tax liability shall
be issued on and after each July 1 and January 1 covering tax
due with that return during any month or period more than 6
years before that July 1 or January 1, respectively), 5a, 5b,
5c, 5d, 5e, 5f, 5g, 5h, 5j, 5k, 5l, 5m, 5n, 7, 8, 9, 10, 11 and
12 of the Retailers' Occupation Tax Act and Section 3-7 of the
Uniform Penalty and Interest Act, which are not inconsistent
with this Act, shall apply, as far as practicable, to the
subject matter of this Act to the same extent as if such
provisions were included herein.
(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23;
103-595, eff. 6-26-24.)
Section 70-30. The Service Use Tax Act is amended by
changing Sections 3-5 and 3-10 as follows:
(35 ILCS 110/3-5)
Sec. 3-5. Exemptions. Use of the following tangible
personal property is exempt from the tax imposed by this Act:
(1) Personal property purchased from a corporation,
society, association, foundation, institution, or
organization, other than a limited liability company, that is
organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the
personal property was not purchased by the enterprise for the

SB3019 Enrolled - 173 - LRB104 20255 HLH 33706 b
purpose of resale by the enterprise.
(2) Personal property purchased by a non-profit Illinois
county fair association for use in conducting, operating, or
promoting the county fair.
(3) Personal property purchased by a not-for-profit arts
or cultural organization that establishes, by proof required
by the Department by rule, that it has received an exemption
under Section 501(c)(3) of the Internal Revenue Code and that
is organized and operated primarily for the presentation or
support of arts or cultural programming, activities, or
services. These organizations include, but are not limited to,
music and dramatic arts organizations such as symphony
orchestras and theatrical groups, arts and cultural service
organizations, local arts councils, visual arts organizations,
and media arts organizations. On and after July 1, 2001 (the
effective date of Public Act 92-35), however, an entity
otherwise eligible for this exemption shall not make tax-free
purchases unless it has an active identification number issued
by the Department.
(4) Legal tender, currency, medallions, or gold or silver
coinage issued by the State of Illinois, the government of the
United States of America, or the government of any foreign
country, and bullion.
(5) Until July 1, 2003 and beginning again on September 1,
2004 through August 30, 2014, graphic arts machinery and
equipment, including repair and replacement parts, both new

SB3019 Enrolled - 174 - LRB104 20255 HLH 33706 b
and used, and including that manufactured on special order or
purchased for lease, certified by the purchaser to be used
primarily for graphic arts production. Equipment includes
chemicals or chemicals acting as catalysts but only if the
chemicals or chemicals acting as catalysts effect a direct and
immediate change upon a graphic arts product. Beginning on
July 1, 2017, graphic arts machinery and equipment is included
in the manufacturing and assembling machinery and equipment
exemption under Section 2 of this Act.
(6) Personal property purchased from a teacher-sponsored
student organization affiliated with an elementary or
secondary school located in Illinois.
(7) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by the
purchaser to be used primarily for production agriculture or
State or federal agricultural programs, including individual
replacement parts for the machinery and equipment, including
machinery and equipment purchased for lease, and including
implements of husbandry defined in Section 1-130 of the
Illinois Vehicle Code, farm machinery and agricultural
chemical and fertilizer spreaders, and nurse wagons required
to be registered under Section 3-809 of the Illinois Vehicle
Code, but excluding other motor vehicles required to be
registered under the Illinois Vehicle Code. Horticultural
polyhouses or hoop houses used for propagating, growing, or
overwintering plants shall be considered farm machinery and

SB3019 Enrolled - 175 - LRB104 20255 HLH 33706 b
equipment under this item (7). Agricultural chemical tender
tanks and dry boxes shall include units sold separately from a
motor vehicle required to be licensed and units sold mounted
on a motor vehicle required to be licensed if the selling price
of the tender is separately stated.
Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be
installed on farm machinery and equipment, including, but not
limited to, tractors, harvesters, sprayers, planters, seeders,
or spreaders. Precision farming equipment includes, but is not
limited to, soil testing sensors, computers, monitors,
software, global positioning and mapping systems, and other
such equipment.
Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in the
computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not limited
to, the collection, monitoring, and correlation of animal and
crop data for the purpose of formulating animal diets and
agricultural chemicals.
Beginning on January 1, 2024, farm machinery and equipment
also includes electrical power generation equipment used
primarily for production agriculture.
This item (7) is exempt from the provisions of Section
3-75.
(8) Until June 30, 2013, fuel and petroleum products sold

SB3019 Enrolled - 176 - LRB104 20255 HLH 33706 b
to or used by an air common carrier, certified by the carrier
to be used for consumption, shipment, or storage in the
conduct of its business as an air common carrier, for a flight
destined for or returning from a location or locations outside
the United States without regard to previous or subsequent
domestic stopovers.
Beginning July 1, 2013, fuel and petroleum products sold
to or used by an air carrier, certified by the carrier to be
used for consumption, shipment, or storage in the conduct of
its business as an air common carrier, for a flight that (i) is
engaged in foreign trade or is engaged in trade between the
United States and any of its possessions and (ii) transports
at least one individual or package for hire from the city of
origination to the city of final destination on the same
aircraft, without regard to a change in the flight number of
that aircraft.
(9) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of
food and beverages acquired as an incident to the purchase of a
service from a serviceman, to the extent that the proceeds of
the service charge are in fact turned over as tips or as a
substitute for tips to the employees who participate directly
in preparing, serving, hosting or cleaning up the food or
beverage function with respect to which the service charge is
imposed.
(10) Until July 1, 2003, oil field exploration, drilling,

SB3019 Enrolled - 177 - LRB104 20255 HLH 33706 b
and production equipment, including (i) rigs and parts of
rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
pipe and tubular goods, including casing and drill strings,
(iii) pumps and pump-jack units, (iv) storage tanks and flow
lines, (v) any individual replacement part for oil field
exploration, drilling, and production equipment, and (vi)
machinery and equipment purchased for lease; but excluding
motor vehicles required to be registered under the Illinois
Vehicle Code.
(11) Proceeds from the sale of photoprocessing machinery
and equipment, including repair and replacement parts, both
new and used, including that manufactured on special order,
certified by the purchaser to be used primarily for
photoprocessing, and including photoprocessing machinery and
equipment purchased for lease.
(12) Until July 1, 2028, coal and aggregate exploration,
mining, off-highway hauling, processing, maintenance, and
reclamation equipment, including replacement parts and
equipment, and including equipment purchased for lease, but
excluding motor vehicles required to be registered under the
Illinois Vehicle Code. The changes made to this Section by
Public Act 97-767 apply on and after July 1, 2003, but no claim
for credit or refund is allowed on or after August 16, 2013
(the effective date of Public Act 98-456) for such taxes paid
during the period beginning July 1, 2003 and ending on August
16, 2013 (the effective date of Public Act 98-456).

SB3019 Enrolled - 178 - LRB104 20255 HLH 33706 b
(13) Semen used for artificial insemination of livestock
for direct agricultural production.
(14) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes. This item (14) is exempt from the
provisions of Section 3-75, and the exemption provided for
under this item (14) applies for all periods beginning May 30,
1995, but no claim for credit or refund is allowed on or after
January 1, 2008 (the effective date of Public Act 95-88) for
such taxes paid during the period beginning May 30, 2000 and
ending on January 1, 2008 (the effective date of Public Act
95-88).
(15) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a
lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the time the lessor would
otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act. If the equipment is leased
in a manner that does not qualify for this exemption or is used
in any other non-exempt manner, the lessor shall be liable for

SB3019 Enrolled - 179 - LRB104 20255 HLH 33706 b
the tax imposed under this Act or the Use Tax Act, as the case
may be, based on the fair market value of the property at the
time the non-qualifying use occurs. No lessor shall collect or
attempt to collect an amount (however designated) that
purports to reimburse that lessor for the tax imposed by this
Act or the Use Tax Act, as the case may be, if the tax has not
been paid by the lessor. If a lessor improperly collects any
such amount from the lessee, the lessee shall have a legal
right to claim a refund of that amount from the lessor. If,
however, that amount is not refunded to the lessee for any
reason, the lessor is liable to pay that amount to the
Department.
(16) Personal property purchased by a lessor who leases
the property, under a lease of one year or longer executed or
in effect at the time the lessor would otherwise be subject to
the tax imposed by this Act, to a governmental body that has
been issued an active tax exemption identification number by
the Department under Section 1g of the Retailers' Occupation
Tax Act. If the property is leased in a manner that does not
qualify for this exemption or is used in any other non-exempt
manner, the lessor shall be liable for the tax imposed under
this Act or the Use Tax Act, as the case may be, based on the
fair market value of the property at the time the
non-qualifying use occurs. No lessor shall collect or attempt
to collect an amount (however designated) that purports to
reimburse that lessor for the tax imposed by this Act or the

SB3019 Enrolled - 180 - LRB104 20255 HLH 33706 b
Use Tax Act, as the case may be, if the tax has not been paid
by the lessor. If a lessor improperly collects any such amount
from the lessee, the lessee shall have a legal right to claim a
refund of that amount from the lessor. If, however, that
amount is not refunded to the lessee for any reason, the lessor
is liable to pay that amount to the Department.
(17) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated
for disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to a
corporation, society, association, foundation, or institution
that has been issued a sales tax exemption identification
number by the Department that assists victims of the disaster
who reside within the declared disaster area.
(18) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in
the performance of infrastructure repairs in this State,
including, but not limited to, municipal roads and streets,
access roads, bridges, sidewalks, waste disposal systems,
water and sewer line extensions, water distribution and
purification facilities, storm water drainage and retention
facilities, and sewage treatment facilities, resulting from a
State or federally declared disaster in Illinois or bordering

SB3019 Enrolled - 181 - LRB104 20255 HLH 33706 b
Illinois when such repairs are initiated on facilities located
in the declared disaster area within 6 months after the
disaster.
(19) Beginning July 1, 1999, game or game birds purchased
at a "game breeding and hunting preserve area" as that term is
used in the Wildlife Code. This paragraph is exempt from the
provisions of Section 3-75.
(20) A motor vehicle, as that term is defined in Section
1-146 of the Illinois Vehicle Code, that is donated to a
corporation, limited liability company, society, association,
foundation, or institution that is determined by the
Department to be organized and operated exclusively for
educational purposes. For purposes of this exemption, "a
corporation, limited liability company, society, association,
foundation, or institution organized and operated exclusively
for educational purposes" means all tax-supported public
schools, private schools that offer systematic instruction in
useful branches of learning by methods common to public
schools and that compare favorably in their scope and
intensity with the course of study presented in tax-supported
schools, and vocational or technical schools or institutes
organized and operated exclusively to provide a course of
study of not less than 6 weeks duration and designed to prepare
individuals to follow a trade or to pursue a manual,
technical, mechanical, industrial, business, or commercial
occupation.

SB3019 Enrolled - 182 - LRB104 20255 HLH 33706 b
(21) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for the
benefit of a public or private elementary or secondary school,
a group of those schools, or one or more school districts if
the events are sponsored by an entity recognized by the school
district that consists primarily of volunteers and includes
parents and teachers of the school children. This paragraph
does not apply to fundraising events (i) for the benefit of
private home instruction or (ii) for which the fundraising
entity purchases the personal property sold at the events from
another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that profits
from the sale to the fundraising entity. This paragraph is
exempt from the provisions of Section 3-75.
(22) Beginning January 1, 2000 and through December 31,
2001, new or used automatic vending machines that prepare and
serve hot food and beverages, including coffee, soup, and
other items, and replacement parts for these machines.
Beginning January 1, 2002 and through June 30, 2003, machines
and parts for machines used in commercial, coin-operated
amusement and vending business if a use or occupation tax is
paid on the gross receipts derived from the use of the
commercial, coin-operated amusement and vending machines. This
paragraph is exempt from the provisions of Section 3-75.
(23) Beginning August 23, 2001 and through June 30, 2016,
food for human consumption that is to be consumed off the

SB3019 Enrolled - 183 - LRB104 20255 HLH 33706 b
premises where it is sold (other than alcoholic beverages,
soft drinks, and food that has been prepared for immediate
consumption) and prescription and nonprescription medicines,
drugs, medical appliances, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use, when purchased for use by a person receiving medical
assistance under Article V of the Illinois Public Aid Code who
resides in a licensed long-term care facility, as defined in
the Nursing Home Care Act, or in a licensed facility as defined
in the ID/DD Community Care Act, the MC/DD Act, or the
Specialized Mental Health Rehabilitation Act of 2013.
(24) Beginning on August 2, 2001 (the effective date of
Public Act 92-227), computers and communications equipment
utilized for any hospital purpose and equipment used in the
diagnosis, analysis, or treatment of hospital patients
purchased by a lessor who leases the equipment, under a lease
of one year or longer executed or in effect at the time the
lessor would otherwise be subject to the tax imposed by this
Act, to a hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act. If the equipment is leased
in a manner that does not qualify for this exemption or is used
in any other nonexempt manner, the lessor shall be liable for
the tax imposed under this Act or the Use Tax Act, as the case
may be, based on the fair market value of the property at the
time the nonqualifying use occurs. No lessor shall collect or

SB3019 Enrolled - 184 - LRB104 20255 HLH 33706 b
attempt to collect an amount (however designated) that
purports to reimburse that lessor for the tax imposed by this
Act or the Use Tax Act, as the case may be, if the tax has not
been paid by the lessor. If a lessor improperly collects any
such amount from the lessee, the lessee shall have a legal
right to claim a refund of that amount from the lessor. If,
however, that amount is not refunded to the lessee for any
reason, the lessor is liable to pay that amount to the
Department. This paragraph is exempt from the provisions of
Section 3-75.
(25) Beginning on August 2, 2001 (the effective date of
Public Act 92-227), personal property purchased by a lessor
who leases the property, under a lease of one year or longer
executed or in effect at the time the lessor would otherwise be
subject to the tax imposed by this Act, to a governmental body
that has been issued an active tax exemption identification
number by the Department under Section 1g of the Retailers'
Occupation Tax Act. If the property is leased in a manner that
does not qualify for this exemption or is used in any other
nonexempt manner, the lessor shall be liable for the tax
imposed under this Act or the Use Tax Act, as the case may be,
based on the fair market value of the property at the time the
nonqualifying use occurs. No lessor shall collect or attempt
to collect an amount (however designated) that purports to
reimburse that lessor for the tax imposed by this Act or the
Use Tax Act, as the case may be, if the tax has not been paid

SB3019 Enrolled - 185 - LRB104 20255 HLH 33706 b
by the lessor. If a lessor improperly collects any such amount
from the lessee, the lessee shall have a legal right to claim a
refund of that amount from the lessor. If, however, that
amount is not refunded to the lessee for any reason, the lessor
is liable to pay that amount to the Department. This paragraph
is exempt from the provisions of Section 3-75.
(26) Beginning January 1, 2008, tangible personal property
used in the construction or maintenance of a community water
supply, as defined under Section 3.145 of the Environmental
Protection Act, that is operated by a not-for-profit
corporation that holds a valid water supply permit issued
under Title IV of the Environmental Protection Act. This
paragraph is exempt from the provisions of Section 3-75.
(27) Beginning January 1, 2010 and continuing through
December 31, 2029, materials, parts, equipment, components,
and furnishings incorporated into or upon an aircraft as part
of the modification, refurbishment, completion, replacement,
repair, or maintenance of the aircraft. This exemption
includes consumable supplies used in the modification,
refurbishment, completion, replacement, repair, and
maintenance of aircraft. However, until January 1, 2024, this
exemption excludes any materials, parts, equipment,
components, and consumable supplies used in the modification,
replacement, repair, and maintenance of aircraft engines or
power plants, whether such engines or power plants are
installed or uninstalled upon any such aircraft. "Consumable

SB3019 Enrolled - 186 - LRB104 20255 HLH 33706 b
supplies" include, but are not limited to, adhesive, tape,
sandpaper, general purpose lubricants, cleaning solution,
latex gloves, and protective films.
Beginning January 1, 2010 and continuing through December
31, 2023, this exemption applies only to the use of qualifying
tangible personal property transferred incident to the
modification, refurbishment, completion, replacement, repair,
or maintenance of aircraft by persons who (i) hold an Air
Agency Certificate and are empowered to operate an approved
repair station by the Federal Aviation Administration, (ii)
have a Class IV Rating, and (iii) conduct operations in
accordance with Part 145 of the Federal Aviation Regulations.
From January 1, 2024 through December 31, 2029, this exemption
applies only to the use of qualifying tangible personal
property transferred incident to: (A) the modification,
refurbishment, completion, repair, replacement, or maintenance
of an aircraft by persons who (i) hold an Air Agency
Certificate and are empowered to operate an approved repair
station by the Federal Aviation Administration, (ii) have a
Class IV Rating, and (iii) conduct operations in accordance
with Part 145 of the Federal Aviation Regulations; and (B) the
modification, replacement, repair, and maintenance of aircraft
engines or power plants without regard to whether or not those
persons meet the qualifications of item (A).
The exemption does not include aircraft operated by a
commercial air carrier providing scheduled passenger air

SB3019 Enrolled - 187 - LRB104 20255 HLH 33706 b
service pursuant to authority issued under Part 121 or Part
129 of the Federal Aviation Regulations. The changes made to
this paragraph (27) by Public Act 98-534 are declarative of
existing law. It is the intent of the General Assembly that the
exemption under this paragraph (27) applies continuously from
January 1, 2010 through December 31, 2024; however, no claim
for credit or refund is allowed for taxes paid as a result of
the disallowance of this exemption on or after January 1, 2015
and prior to February 5, 2020 (the effective date of Public Act
101-629).
(28) Tangible personal property purchased by a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall, but
only if the legal title to the municipal convention hall is
transferred to the municipality without any further
consideration by or on behalf of the municipality at the time
of the completion of the municipal convention hall or upon the
retirement or redemption of any bonds or other debt
instruments issued by the public-facilities corporation in
connection with the development of the municipal convention
hall. This exemption includes existing public-facilities
corporations as provided in Section 11-65-25 of the Illinois
Municipal Code. This paragraph is exempt from the provisions
of Section 3-75.
(29) Beginning January 1, 2017 and through December 31,

SB3019 Enrolled - 188 - LRB104 20255 HLH 33706 b
2026, menstrual pads, tampons, and menstrual cups.
(30) Tangible personal property transferred to a purchaser
who is exempt from the tax imposed by this Act by operation of
federal law. This paragraph is exempt from the provisions of
Section 3-75.
(31) Qualified tangible personal property used in the
construction or operation of a data center that has been
granted a certificate of exemption by the Department of
Commerce and Economic Opportunity, whether that tangible
personal property is purchased by the owner, operator, or
tenant of the data center or by a contractor or subcontractor
of the owner, operator, or tenant. Data centers that would
have qualified for a certificate of exemption prior to January
1, 2020 had Public Act 101-31 been in effect, may apply for and
obtain an exemption for subsequent purchases of computer
equipment or enabling software purchased or leased to upgrade,
supplement, or replace computer equipment or enabling software
purchased or leased in the original investment that would have
qualified.
The Department of Commerce and Economic Opportunity shall
grant a certificate of exemption under this item (31) to
qualified data centers as defined by Section 605-1025 of the
Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
For the purposes of this item (31):
"Data center" means a building or a series of

SB3019 Enrolled - 189 - LRB104 20255 HLH 33706 b
buildings rehabilitated or constructed to house working
servers in one physical location or multiple sites within
the State of Illinois.
"Qualified tangible personal property" means:
electrical systems and equipment; climate control and
chilling equipment and systems; mechanical systems and
equipment; monitoring and secure systems; emergency
generators; hardware; computers; servers; data storage
devices; network connectivity equipment; racks; cabinets;
telecommunications cabling infrastructure; raised floor
systems; peripheral components or systems; software;
mechanical, electrical, or plumbing systems; battery
systems; cooling systems and towers; temperature control
systems; other cabling; and other data center
infrastructure equipment and systems necessary to operate
qualified tangible personal property, including fixtures;
and component parts of any of the foregoing, including
installation, maintenance, repair, refurbishment, and
replacement of qualified tangible personal property to
generate, transform, transmit, distribute, or manage
electricity necessary to operate qualified tangible
personal property; and all other tangible personal
property that is essential to the operations of a computer
data center. The term "qualified tangible personal
property" also includes building materials physically
incorporated into the qualifying data center. To document

SB3019 Enrolled - 190 - LRB104 20255 HLH 33706 b
the exemption allowed under this Section, the retailer
must obtain from the purchaser a copy of the certificate
of eligibility issued by the Department of Commerce and
Economic Opportunity.
This item (31) is exempt from the provisions of Section
3-75.
(32) Beginning July 1, 2022, breast pumps, breast pump
collection and storage supplies, and breast pump kits. This
item (32) is exempt from the provisions of Section 3-75. As
used in this item (32):
"Breast pump" means an electrically controlled or
manually controlled pump device designed or marketed to be
used to express milk from a human breast during lactation,
including the pump device and any battery, AC adapter, or
other power supply unit that is used to power the pump
device and is packaged and sold with the pump device at the
time of sale.
"Breast pump collection and storage supplies" means
items of tangible personal property designed or marketed
to be used in conjunction with a breast pump to collect
milk expressed from a human breast and to store collected
milk until it is ready for consumption.
"Breast pump collection and storage supplies"
includes, but is not limited to: breast shields and breast
shield connectors; breast pump tubes and tubing adapters;
breast pump valves and membranes; backflow protectors and

SB3019 Enrolled - 191 - LRB104 20255 HLH 33706 b
backflow protector adaptors; bottles and bottle caps
specific to the operation of the breast pump; and breast
milk storage bags.
"Breast pump collection and storage supplies" does not
include: (1) bottles and bottle caps not specific to the
operation of the breast pump; (2) breast pump travel bags
and other similar carrying accessories, including ice
packs, labels, and other similar products; (3) breast pump
cleaning supplies; (4) nursing bras, bra pads, breast
shells, and other similar products; and (5) creams,
ointments, and other similar products that relieve
breastfeeding-related symptoms or conditions of the
breasts or nipples, unless sold as part of a breast pump
kit that is pre-packaged by the breast pump manufacturer
or distributor.
"Breast pump kit" means a kit that: (1) contains no
more than a breast pump, breast pump collection and
storage supplies, a rechargeable battery for operating the
breast pump, a breastmilk cooler, bottle stands, ice
packs, and a breast pump carrying case; and (2) is
pre-packaged as a breast pump kit by the breast pump
manufacturer or distributor.
(33) Tangible personal property sold by or on behalf of
the State Treasurer pursuant to the Revised Uniform Unclaimed
Property Act. This item (33) is exempt from the provisions of
Section 3-75.

SB3019 Enrolled - 192 - LRB104 20255 HLH 33706 b
(34) Beginning on January 1, 2024, tangible personal
property purchased by an active duty member of the armed
forces of the United States who presents valid military
identification and purchases the property using a form of
payment where the federal government is the payor. The member
of the armed forces must complete, at the point of sale, a form
prescribed by the Department of Revenue documenting that the
transaction is eligible for the exemption under this
paragraph. Retailers must keep the form as documentation of
the exemption in their records for a period of not less than 6
years. "Armed forces of the United States" means the United
States Army, Navy, Air Force, Space Force, Marine Corps, or
Coast Guard. This paragraph is exempt from the provisions of
Section 3-75.
(35) Beginning July 1, 2024, home-delivered meals provided
to Medicare or Medicaid recipients when payment is made by an
intermediary, such as a Medicare Administrative Contractor, a
Managed Care Organization, or a Medicare Advantage
Organization, pursuant to a government contract. This
paragraph (35) is exempt from the provisions of Section 3-75.
(36) Beginning on January 1, 2026, as further defined in
Section 3-10, food prepared for immediate consumption and
transferred incident to a sale of service subject to this Act
or the Service Occupation Tax Act by an entity licensed under
the Hospital Licensing Act, the Nursing Home Care Act, the
Assisted Living and Shared Housing Act, the ID/DD Community

SB3019 Enrolled - 193 - LRB104 20255 HLH 33706 b
Care Act, the MC/DD Act, the Specialized Mental Health
Rehabilitation Act of 2013, or the Child Care Act of 1969 or by
an entity that holds a permit issued pursuant to the Life Care
Facilities Act. This item (36) is exempt from the provisions
of Section 3-75.
(37) Beginning on January 1, 2026, as further defined in
Section 3-10, food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic liquor taxable under Section 8-1 of the Liquor
Control Act of 1934 beverages, food consisting of or infused
with adult use cannabis, soft drinks, candy, and food that has
been prepared for immediate consumption). This item (37) is
exempt from the provisions of Section 3-75.
(38) Use by a lessee of the following leased tangible
personal property:
(1) software transferred subject to a license that
meets the following requirements:
(A) it is evidenced by a written agreement signed
by the licensor and the customer;
(i) an electronic agreement in which the
customer accepts the license by means of an
electronic signature that is verifiable and can be
authenticated and is attached to or made part of
the license will comply with this requirement;
(ii) a license agreement in which the customer
electronically accepts the terms by clicking "I

SB3019 Enrolled - 194 - LRB104 20255 HLH 33706 b
agree" does not comply with this requirement;
(B) it restricts the customer's duplication and
use of the software;
(C) it prohibits the customer from licensing,
sublicensing, or transferring the software to a third
party (except to a related party) without the
permission and continued control of the licensor;
(D) the licensor has a policy of providing another
copy at minimal or no charge if the customer loses or
damages the software, or of permitting the licensee to
make and keep an archival copy, and such policy is
either stated in the license agreement, supported by
the licensor's books and records, or supported by a
notarized statement made under penalties of perjury by
the licensor; and
(E) the customer must destroy or return all copies
of the software to the licensor at the end of the
license period; this provision is deemed to be met, in
the case of a perpetual license, without being set
forth in the license agreement; and
(2) property that is subject to a tax on lease
receipts imposed by a home rule unit of local government
if the ordinance imposing that tax was adopted prior to
January 1, 2023.
(Source: P.A. 103-9, Article 5, Section 5-10, eff. 6-7-23;
103-9, Article 15, Section 15-10, eff. 6-7-23; 103-154, eff.

SB3019 Enrolled - 195 - LRB104 20255 HLH 33706 b
6-30-23; 103-384, eff. 1-1-24; 103-592, eff. 1-1-25; 103-605,
eff. 7-1-24; 103-643, eff. 7-1-24; 103-746, eff. 1-1-25;
103-781, eff. 8-5-24; 103-995, eff. 8-9-24; 104-417, eff.
8-15-25.)
(35 ILCS 110/3-10)
Sec. 3-10. Rate of tax. Unless otherwise provided in this
Section, the tax imposed by this Act is at the rate of 6.25% of
the selling price of tangible personal property transferred,
including, on and after January 1, 2025, transferred by lease,
as an incident to the sale of service, but, for the purpose of
computing this tax, in no event shall the selling price be less
than the cost price of the property to the serviceman.
Beginning on July 1, 2000 and through December 31, 2000,
with respect to motor fuel, as defined in Section 1.1 of the
Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
the Use Tax Act, the tax is imposed at the rate of 1.25%.
With respect to gasohol, as defined in the Use Tax Act, the
tax imposed by this Act applies to (i) 70% of the selling price
of property transferred as an incident to the sale of service
on or after January 1, 1990, and before July 1, 2003, (ii) 80%
of the selling price of property transferred as an incident to
the sale of service on or after July 1, 2003 and on or before
July 1, 2017, (iii) 100% of the selling price of property
transferred as an incident to the sale of service after July 1,
2017 and before January 1, 2024, (iv) 90% of the selling price

SB3019 Enrolled - 196 - LRB104 20255 HLH 33706 b
of property transferred as an incident to the sale of service
on or after January 1, 2024 and on or before December 31, 2028,
and (v) 100% of the selling price of property transferred as an
incident to the sale of service after December 31, 2028. If, at
any time, however, the tax under this Act on sales of gasohol,
as defined in the Use Tax Act, is imposed at the rate of 1.25%,
then the tax imposed by this Act applies to 100% of the
proceeds of sales of gasohol made during that time.
With respect to mid-range ethanol blends, as defined in
Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
applies to (i) 80% of the selling price of property
transferred as an incident to the sale of service on or after
January 1, 2024 and on or before December 31, 2028 and (ii)
100% of the selling price of property transferred as an
incident to the sale of service after December 31, 2028. If, at
any time, however, the tax under this Act on sales of mid-range
ethanol blends is imposed at the rate of 1.25%, then the tax
imposed by this Act applies to 100% of the selling price of
mid-range ethanol blends transferred as an incident to the
sale of service during that time.
With respect to majority blended ethanol fuel, as defined
in the Use Tax Act, the tax imposed by this Act does not apply
to the selling price of property transferred as an incident to
the sale of service on or after July 1, 2003 and on or before
December 31, 2028 but applies to 100% of the selling price
thereafter.

SB3019 Enrolled - 197 - LRB104 20255 HLH 33706 b
With respect to biodiesel blends, as defined in the Use
Tax Act, with no less than 1% and no more than 10% biodiesel,
the tax imposed by this Act applies to (i) 80% of the selling
price of property transferred as an incident to the sale of
service on or after July 1, 2003 and on or before December 31,
2018 and (ii) 100% of the proceeds of the selling price after
December 31, 2018 and before January 1, 2024. On and after
January 1, 2024 and on or before December 31, 2030, the
taxation of biodiesel, renewable diesel, and biodiesel blends
shall be as provided in Section 3-5.1 of the Use Tax Act. If,
at any time, however, the tax under this Act on sales of
biodiesel blends, as defined in the Use Tax Act, with no less
than 1% and no more than 10% biodiesel is imposed at the rate
of 1.25%, then the tax imposed by this Act applies to 100% of
the proceeds of sales of biodiesel blends with no less than 1%
and no more than 10% biodiesel made during that time.
With respect to biodiesel, as defined in the Use Tax Act,
and biodiesel blends, as defined in the Use Tax Act, with more
than 10% but no more than 99% biodiesel, the tax imposed by
this Act does not apply to the proceeds of the selling price of
property transferred as an incident to the sale of service on
or after July 1, 2003 and on or before December 31, 2023. On
and after January 1, 2024 and on or before December 31, 2030,
the taxation of biodiesel, renewable diesel, and biodiesel
blends shall be as provided in Section 3-5.1 of the Use Tax
Act.

SB3019 Enrolled - 198 - LRB104 20255 HLH 33706 b
At the election of any registered serviceman made for each
fiscal year, for whom the aggregate annual cost price of
tangible personal property transferred as an incident to the
sales of service is less than 35%, or 75% in the case of
servicemen transferring prescription drugs or servicemen
engaged in graphic arts production, of the aggregate annual
total gross receipts from all sales of service, the tax
imposed by this Act shall be based on the serviceman's cost
price of the tangible personal property transferred as an
incident to the sale of those services. This election may also
be made by any serviceman maintaining a place of business in
this State who makes retail sales from outside of this State to
Illinois customers but is not required to be registered under
Section 2a of the Retailers' Occupation Tax Act. Beginning
January 1, 2026, this election shall not apply to any sale of
service made through a marketplace that has met the threshold
in subsection (b-5) of Section 2d of this Act.
Beginning January 1, 2026, the tax shall be imposed at the
rate of 6.25% of 50% of the entire billing to the service
customer for all sales of service made through a marketplace
that has met the threshold in subsection (b-5) of Section 2d of
this Act. In no event shall 50% of the entire billing be less
than the cost price of the property to the marketplace
serviceman or the marketplace facilitator on its own sales of
service.
Until July 1, 2022 and from July 1, 2023 through December

SB3019 Enrolled - 199 - LRB104 20255 HLH 33706 b
31, 2025, the tax shall be imposed at the rate of 1% on food
prepared for immediate consumption and transferred incident to
a sale of service subject to this Act or the Service Occupation
Tax Act by an entity licensed under the Hospital Licensing
Act, the Nursing Home Care Act, the Assisted Living and Shared
Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
Specialized Mental Health Rehabilitation Act of 2013, or the
Child Care Act of 1969, or an entity that holds a permit issued
pursuant to the Life Care Facilities Act. Until July 1, 2022
and from July 1, 2023 through December 31, 2025, the tax shall
also be imposed at the rate of 1% on food for human consumption
that is to be consumed off the premises where it is sold (other
than alcoholic beverages, food consisting of or infused with
adult use cannabis, soft drinks, and food that has been
prepared for immediate consumption and is not otherwise
included in this paragraph).
Beginning on July 1, 2022 and until July 1, 2023, the tax
shall be imposed at the rate of 0% on food prepared for
immediate consumption and transferred incident to a sale of
service subject to this Act or the Service Occupation Tax Act
by an entity licensed under the Hospital Licensing Act, the
Nursing Home Care Act, the Assisted Living and Shared Housing
Act, the ID/DD Community Care Act, the MC/DD Act, the
Specialized Mental Health Rehabilitation Act of 2013, or the
Child Care Act of 1969, or an entity that holds a permit issued
pursuant to the Life Care Facilities Act. Beginning on July 1,

SB3019 Enrolled - 200 - LRB104 20255 HLH 33706 b
2022 and until July 1, 2023, the tax shall also be imposed at
the rate of 0% on food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption and is not otherwise included in this
paragraph).
On and after January 1, 2026, food prepared for immediate
consumption and transferred incident to a sale of service
subject to this Act or the Service Occupation Tax Act by an
entity licensed under the Hospital Licensing Act, the Nursing
Home Care Act, the Assisted Living and Shared Housing Act, the
ID/DD Community Care Act, the MC/DD Act, the Specialized
Mental Health Rehabilitation Act of 2013, or the Child Care
Act of 1969, or by an entity that holds a permit issued
pursuant to the Life Care Facilities Act is exempt from the tax
under this Act. On and after January 1, 2026, food for human
consumption that is to be consumed off the premises where it is
sold (other than alcoholic liquor taxable under Section 8-1 of
the Liquor Control Act of 1934 beverages, food consisting of
or infused with adult use cannabis, soft drinks, candy, and
food that has been prepared for immediate consumption and is
not otherwise included in this paragraph) is exempt from the
tax under this Act.
The tax shall be imposed at the rate of 1% on prescription
and nonprescription medicines, drugs, medical appliances,

SB3019 Enrolled - 201 - LRB104 20255 HLH 33706 b
products classified as Class III medical devices by the United
States Food and Drug Administration that are used for cancer
treatment pursuant to a prescription, as well as any
accessories and components related to those devices,
modifications to a motor vehicle for the purpose of rendering
it usable by a person with a disability, and insulin, blood
sugar testing materials, syringes, and needles used by human
diabetics. For the purposes of this Section, until September
1, 2009: the term "soft drinks" means any complete, finished,
ready-to-use, non-alcoholic drink, whether carbonated or not,
including, but not limited to, soda water, cola, fruit juice,
vegetable juice, carbonated water, and all other preparations
commonly known as soft drinks of whatever kind or description
that are contained in any closed or sealed bottle, can,
carton, or container, regardless of size; but "soft drinks"
does not include coffee, tea, non-carbonated water, infant
formula, milk or milk products as defined in the Grade A
Pasteurized Milk and Milk Products Act, or drinks containing
50% or more natural fruit or vegetable juice.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "soft drinks" means non-alcoholic
beverages that contain natural or artificial sweeteners. "Soft
drinks" does not include beverages that contain milk or milk
products, soy, rice or similar milk substitutes, or greater
than 50% of vegetable or fruit juice by volume.
Until August 1, 2009, and notwithstanding any other

SB3019 Enrolled - 202 - LRB104 20255 HLH 33706 b
provisions of this Act, "food for human consumption that is to
be consumed off the premises where it is sold" includes all
food sold through a vending machine, except soft drinks and
food products that are dispensed hot from a vending machine,
regardless of the location of the vending machine. Beginning
August 1, 2009, and notwithstanding any other provisions of
this Act, "food for human consumption that is to be consumed
off the premises where it is sold" includes all food sold
through a vending machine, except soft drinks, candy, and food
products that are dispensed hot from a vending machine,
regardless of the location of the vending machine.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "food for human consumption that
is to be consumed off the premises where it is sold" does not
include candy. For purposes of this Section, "candy" means a
preparation of sugar, honey, or other natural or artificial
sweeteners in combination with chocolate, fruits, nuts or
other ingredients or flavorings in the form of bars, drops, or
pieces. "Candy" does not include any preparation that contains
flour or requires refrigeration.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "nonprescription medicines and
drugs" does not include grooming and hygiene products. For
purposes of this Section, "grooming and hygiene products"
includes, but is not limited to, soaps and cleaning solutions,
shampoo, toothpaste, mouthwash, antiperspirants, and sun tan

SB3019 Enrolled - 203 - LRB104 20255 HLH 33706 b
lotions and screens, unless those products are available by
prescription only, regardless of whether the products meet the
definition of "over-the-counter-drugs". For the purposes of
this paragraph, "over-the-counter-drug" means a drug for human
use that contains a label that identifies the product as a drug
as required by 21 CFR 201.66. The "over-the-counter-drug"
label includes:
(A) a "Drug Facts" panel; or
(B) a statement of the "active ingredient(s)" with a
list of those ingredients contained in the compound,
substance or preparation.
Beginning on January 1, 2014 (the effective date of Public
Act 98-122), "prescription and nonprescription medicines and
drugs" includes medical cannabis purchased from a registered
dispensing organization under the Compassionate Use of Medical
Cannabis Program Act.
As used in this Section, "adult use cannabis" means
cannabis subject to tax under the Cannabis Cultivation
Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
and does not include cannabis subject to tax under the
Compassionate Use of Medical Cannabis Program Act.
If the property that is acquired from a serviceman is
acquired outside Illinois and used outside Illinois before
being brought to Illinois for use here and is taxable under
this Act, the "selling price" on which the tax is computed
shall be reduced by an amount that represents a reasonable

SB3019 Enrolled - 204 - LRB104 20255 HLH 33706 b
allowance for depreciation for the period of prior
out-of-state use. No depreciation is allowed in cases where
the tax under this Act is imposed on lease receipts.
(Source: P.A. 103-9, eff. 6-7-23; 103-154, eff. 6-30-23;
103-592, eff. 1-1-25; 103-781, eff. 8-5-24; 104-6, eff.
6-16-25; 104-417, eff. 8-15-25.)
Section 70-35. The Service Occupation Tax Act is amended
by changing Sections 3-5 and 3-10 as follows:
(35 ILCS 115/3-5)
Sec. 3-5. Exemptions. The following tangible personal
property is exempt from the tax imposed by this Act:
(1) Personal property sold by a corporation, society,
association, foundation, institution, or organization, other
than a limited liability company, that is organized and
operated as a not-for-profit service enterprise for the
benefit of persons 65 years of age or older if the personal
property was not purchased by the enterprise for the purpose
of resale by the enterprise.
(2) Personal property purchased by a not-for-profit
Illinois county fair association for use in conducting,
operating, or promoting the county fair.
(3) Personal property purchased by any not-for-profit arts
or cultural organization that establishes, by proof required
by the Department by rule, that it has received an exemption

SB3019 Enrolled - 205 - LRB104 20255 HLH 33706 b
under Section 501(c)(3) of the Internal Revenue Code and that
is organized and operated primarily for the presentation or
support of arts or cultural programming, activities, or
services. These organizations include, but are not limited to,
music and dramatic arts organizations such as symphony
orchestras and theatrical groups, arts and cultural service
organizations, local arts councils, visual arts organizations,
and media arts organizations. On and after July 1, 2001 (the
effective date of Public Act 92-35), however, an entity
otherwise eligible for this exemption shall not make tax-free
purchases unless it has an active identification number issued
by the Department.
(4) Legal tender, currency, medallions, or gold or silver
coinage issued by the State of Illinois, the government of the
United States of America, or the government of any foreign
country, and bullion.
(5) Until July 1, 2003 and beginning again on September 1,
2004 through August 30, 2014, graphic arts machinery and
equipment, including repair and replacement parts, both new
and used, and including that manufactured on special order or
purchased for lease, certified by the purchaser to be used
primarily for graphic arts production. Equipment includes
chemicals or chemicals acting as catalysts but only if the
chemicals or chemicals acting as catalysts effect a direct and
immediate change upon a graphic arts product. Beginning on
July 1, 2017, graphic arts machinery and equipment is included

SB3019 Enrolled - 206 - LRB104 20255 HLH 33706 b
in the manufacturing and assembling machinery and equipment
exemption under Section 2 of this Act.
(6) Personal property sold by a teacher-sponsored student
organization affiliated with an elementary or secondary school
located in Illinois.
(7) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by the
purchaser to be used primarily for production agriculture or
State or federal agricultural programs, including individual
replacement parts for the machinery and equipment, including
machinery and equipment purchased for lease, and including
implements of husbandry defined in Section 1-130 of the
Illinois Vehicle Code, farm machinery and agricultural
chemical and fertilizer spreaders, and nurse wagons required
to be registered under Section 3-809 of the Illinois Vehicle
Code, but excluding other motor vehicles required to be
registered under the Illinois Vehicle Code. Horticultural
polyhouses or hoop houses used for propagating, growing, or
overwintering plants shall be considered farm machinery and
equipment under this item (7). Agricultural chemical tender
tanks and dry boxes shall include units sold separately from a
motor vehicle required to be licensed and units sold mounted
on a motor vehicle required to be licensed if the selling price
of the tender is separately stated.
Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be

SB3019 Enrolled - 207 - LRB104 20255 HLH 33706 b
installed on farm machinery and equipment, including, but not
limited to, tractors, harvesters, sprayers, planters, seeders,
or spreaders. Precision farming equipment includes, but is not
limited to, soil testing sensors, computers, monitors,
software, global positioning and mapping systems, and other
such equipment.
Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in the
computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not limited
to, the collection, monitoring, and correlation of animal and
crop data for the purpose of formulating animal diets and
agricultural chemicals.
Beginning on January 1, 2024, farm machinery and equipment
also includes electrical power generation equipment used
primarily for production agriculture.
This item (7) is exempt from the provisions of Section
3-55.
(8) Until June 30, 2013, fuel and petroleum products sold
to or used by an air common carrier, certified by the carrier
to be used for consumption, shipment, or storage in the
conduct of its business as an air common carrier, for a flight
destined for or returning from a location or locations outside
the United States without regard to previous or subsequent
domestic stopovers.
Beginning July 1, 2013, fuel and petroleum products sold

SB3019 Enrolled - 208 - LRB104 20255 HLH 33706 b
to or used by an air carrier, certified by the carrier to be
used for consumption, shipment, or storage in the conduct of
its business as an air common carrier, for a flight that (i) is
engaged in foreign trade or is engaged in trade between the
United States and any of its possessions and (ii) transports
at least one individual or package for hire from the city of
origination to the city of final destination on the same
aircraft, without regard to a change in the flight number of
that aircraft.
(9) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of
food and beverages, to the extent that the proceeds of the
service charge are in fact turned over as tips or as a
substitute for tips to the employees who participate directly
in preparing, serving, hosting or cleaning up the food or
beverage function with respect to which the service charge is
imposed.
(10) Until July 1, 2003, oil field exploration, drilling,
and production equipment, including (i) rigs and parts of
rigs, rotary rigs, cable tool rigs, and workover rigs, (ii)
pipe and tubular goods, including casing and drill strings,
(iii) pumps and pump-jack units, (iv) storage tanks and flow
lines, (v) any individual replacement part for oil field
exploration, drilling, and production equipment, and (vi)
machinery and equipment purchased for lease; but excluding
motor vehicles required to be registered under the Illinois

SB3019 Enrolled - 209 - LRB104 20255 HLH 33706 b
Vehicle Code.
(11) Photoprocessing machinery and equipment, including
repair and replacement parts, both new and used, including
that manufactured on special order, certified by the purchaser
to be used primarily for photoprocessing, and including
photoprocessing machinery and equipment purchased for lease.
(12) Until July 1, 2028, coal and aggregate exploration,
mining, off-highway hauling, processing, maintenance, and
reclamation equipment, including replacement parts and
equipment, and including equipment purchased for lease, but
excluding motor vehicles required to be registered under the
Illinois Vehicle Code. The changes made to this Section by
Public Act 97-767 apply on and after July 1, 2003, but no claim
for credit or refund is allowed on or after August 16, 2013
(the effective date of Public Act 98-456) for such taxes paid
during the period beginning July 1, 2003 and ending on August
16, 2013 (the effective date of Public Act 98-456).
(13) Beginning January 1, 1992 and through June 30, 2016,
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
soft drinks and food that has been prepared for immediate
consumption) and prescription and non-prescription medicines,
drugs, medical appliances, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use, when purchased for use by a person receiving medical
assistance under Article V of the Illinois Public Aid Code who

SB3019 Enrolled - 210 - LRB104 20255 HLH 33706 b
resides in a licensed long-term care facility, as defined in
the Nursing Home Care Act, or in a licensed facility as defined
in the ID/DD Community Care Act, the MC/DD Act, or the
Specialized Mental Health Rehabilitation Act of 2013.
(14) Semen used for artificial insemination of livestock
for direct agricultural production.
(15) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes. This item (15) is exempt from the
provisions of Section 3-55, and the exemption provided for
under this item (15) applies for all periods beginning May 30,
1995, but no claim for credit or refund is allowed on or after
January 1, 2008 (the effective date of Public Act 95-88) for
such taxes paid during the period beginning May 30, 2000 and
ending on January 1, 2008 (the effective date of Public Act
95-88).
(16) Computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients sold to a lessor
who leases the equipment, under a lease of one year or longer
executed or in effect at the time of the purchase, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of

SB3019 Enrolled - 211 - LRB104 20255 HLH 33706 b
the Retailers' Occupation Tax Act.
(17) Personal property sold to a lessor who leases the
property, under a lease of one year or longer executed or in
effect at the time of the purchase, to a governmental body that
has been issued an active tax exemption identification number
by the Department under Section 1g of the Retailers'
Occupation Tax Act.
(18) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated
for disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to a
corporation, society, association, foundation, or institution
that has been issued a sales tax exemption identification
number by the Department that assists victims of the disaster
who reside within the declared disaster area.
(19) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in
the performance of infrastructure repairs in this State,
including, but not limited to, municipal roads and streets,
access roads, bridges, sidewalks, waste disposal systems,
water and sewer line extensions, water distribution and
purification facilities, storm water drainage and retention
facilities, and sewage treatment facilities, resulting from a

SB3019 Enrolled - 212 - LRB104 20255 HLH 33706 b
State or federally declared disaster in Illinois or bordering
Illinois when such repairs are initiated on facilities located
in the declared disaster area within 6 months after the
disaster.
(20) Beginning July 1, 1999, game or game birds sold at a
"game breeding and hunting preserve area" as that term is used
in the Wildlife Code. This paragraph is exempt from the
provisions of Section 3-55.
(21) A motor vehicle, as that term is defined in Section
1-146 of the Illinois Vehicle Code, that is donated to a
corporation, limited liability company, society, association,
foundation, or institution that is determined by the
Department to be organized and operated exclusively for
educational purposes. For purposes of this exemption, "a
corporation, limited liability company, society, association,
foundation, or institution organized and operated exclusively
for educational purposes" means all tax-supported public
schools, private schools that offer systematic instruction in
useful branches of learning by methods common to public
schools and that compare favorably in their scope and
intensity with the course of study presented in tax-supported
schools, and vocational or technical schools or institutes
organized and operated exclusively to provide a course of
study of not less than 6 weeks duration and designed to prepare
individuals to follow a trade or to pursue a manual,
technical, mechanical, industrial, business, or commercial

SB3019 Enrolled - 213 - LRB104 20255 HLH 33706 b
occupation.
(22) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for the
benefit of a public or private elementary or secondary school,
a group of those schools, or one or more school districts if
the events are sponsored by an entity recognized by the school
district that consists primarily of volunteers and includes
parents and teachers of the school children. This paragraph
does not apply to fundraising events (i) for the benefit of
private home instruction or (ii) for which the fundraising
entity purchases the personal property sold at the events from
another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that profits
from the sale to the fundraising entity. This paragraph is
exempt from the provisions of Section 3-55.
(23) Beginning January 1, 2000 and through December 31,
2001, new or used automatic vending machines that prepare and
serve hot food and beverages, including coffee, soup, and
other items, and replacement parts for these machines.
Beginning January 1, 2002 and through June 30, 2003, machines
and parts for machines used in commercial, coin-operated
amusement and vending business if a use or occupation tax is
paid on the gross receipts derived from the use of the
commercial, coin-operated amusement and vending machines. This
paragraph is exempt from the provisions of Section 3-55.
(24) Beginning on August 2, 2001 (the effective date of

SB3019 Enrolled - 214 - LRB104 20255 HLH 33706 b
Public Act 92-227), computers and communications equipment
utilized for any hospital purpose and equipment used in the
diagnosis, analysis, or treatment of hospital patients sold to
a lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the time of the purchase, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act. This paragraph is exempt
from the provisions of Section 3-55.
(25) Beginning on August 2, 2001 (the effective date of
Public Act 92-227), personal property sold to a lessor who
leases the property, under a lease of one year or longer
executed or in effect at the time of the purchase, to a
governmental body that has been issued an active tax exemption
identification number by the Department under Section 1g of
the Retailers' Occupation Tax Act. This paragraph is exempt
from the provisions of Section 3-55.
(26) Beginning on January 1, 2002 and through June 30,
2016, tangible personal property purchased from an Illinois
retailer by a taxpayer engaged in centralized purchasing
activities in Illinois who will, upon receipt of the property
in Illinois, temporarily store the property in Illinois (i)
for the purpose of subsequently transporting it outside this
State for use or consumption thereafter solely outside this
State or (ii) for the purpose of being processed, fabricated,
or manufactured into, attached to, or incorporated into other

SB3019 Enrolled - 215 - LRB104 20255 HLH 33706 b
tangible personal property to be transported outside this
State and thereafter used or consumed solely outside this
State. The Director of Revenue shall, pursuant to rules
adopted in accordance with the Illinois Administrative
Procedure Act, issue a permit to any taxpayer in good standing
with the Department who is eligible for the exemption under
this paragraph (26). The permit issued under this paragraph
(26) shall authorize the holder, to the extent and in the
manner specified in the rules adopted under this Act, to
purchase tangible personal property from a retailer exempt
from the taxes imposed by this Act. Taxpayers shall maintain
all necessary books and records to substantiate the use and
consumption of all such tangible personal property outside of
the State of Illinois.
(27) Beginning January 1, 2008, tangible personal property
used in the construction or maintenance of a community water
supply, as defined under Section 3.145 of the Environmental
Protection Act, that is operated by a not-for-profit
corporation that holds a valid water supply permit issued
under Title IV of the Environmental Protection Act. This
paragraph is exempt from the provisions of Section 3-55.
(28) Tangible personal property sold to a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall, but
only if the legal title to the municipal convention hall is

SB3019 Enrolled - 216 - LRB104 20255 HLH 33706 b
transferred to the municipality without any further
consideration by or on behalf of the municipality at the time
of the completion of the municipal convention hall or upon the
retirement or redemption of any bonds or other debt
instruments issued by the public-facilities corporation in
connection with the development of the municipal convention
hall. This exemption includes existing public-facilities
corporations as provided in Section 11-65-25 of the Illinois
Municipal Code. This paragraph is exempt from the provisions
of Section 3-55.
(29) Beginning January 1, 2010 and continuing through
December 31, 2029, materials, parts, equipment, components,
and furnishings incorporated into or upon an aircraft as part
of the modification, refurbishment, completion, replacement,
repair, or maintenance of the aircraft. This exemption
includes consumable supplies used in the modification,
refurbishment, completion, replacement, repair, and
maintenance of aircraft. However, until January 1, 2024, this
exemption excludes any materials, parts, equipment,
components, and consumable supplies used in the modification,
replacement, repair, and maintenance of aircraft engines or
power plants, whether such engines or power plants are
installed or uninstalled upon any such aircraft. "Consumable
supplies" include, but are not limited to, adhesive, tape,
sandpaper, general purpose lubricants, cleaning solution,
latex gloves, and protective films.

SB3019 Enrolled - 217 - LRB104 20255 HLH 33706 b
Beginning January 1, 2010 and continuing through December
31, 2023, this exemption applies only to the transfer of
qualifying tangible personal property incident to the
modification, refurbishment, completion, replacement, repair,
or maintenance of an aircraft by persons who (i) hold an Air
Agency Certificate and are empowered to operate an approved
repair station by the Federal Aviation Administration, (ii)
have a Class IV Rating, and (iii) conduct operations in
accordance with Part 145 of the Federal Aviation Regulations.
The exemption does not include aircraft operated by a
commercial air carrier providing scheduled passenger air
service pursuant to authority issued under Part 121 or Part
129 of the Federal Aviation Regulations. From January 1, 2024
through December 31, 2029, this exemption applies only to the
transfer of qualifying tangible personal property incident to:
(A) the modification, refurbishment, completion, repair,
replacement, or maintenance of an aircraft by persons who (i)
hold an Air Agency Certificate and are empowered to operate an
approved repair station by the Federal Aviation
Administration, (ii) have a Class IV Rating, and (iii) conduct
operations in accordance with Part 145 of the Federal Aviation
Regulations; and (B) the modification, replacement, repair,
and maintenance of aircraft engines or power plants without
regard to whether or not those persons meet the qualifications
of item (A).
The changes made to this paragraph (29) by Public Act

SB3019 Enrolled - 218 - LRB104 20255 HLH 33706 b
98-534 are declarative of existing law. It is the intent of the
General Assembly that the exemption under this paragraph (29)
applies continuously from January 1, 2010 through December 31,
2024; however, no claim for credit or refund is allowed for
taxes paid as a result of the disallowance of this exemption on
or after January 1, 2015 and prior to February 5, 2020 (the
effective date of Public Act 101-629).
(30) Beginning January 1, 2017 and through December 31,
2026, menstrual pads, tampons, and menstrual cups.
(31) Tangible personal property transferred to a purchaser
who is exempt from tax by operation of federal law. This
paragraph is exempt from the provisions of Section 3-55.
(32) Qualified tangible personal property used in the
construction or operation of a data center that has been
granted a certificate of exemption by the Department of
Commerce and Economic Opportunity, whether that tangible
personal property is purchased by the owner, operator, or
tenant of the data center or by a contractor or subcontractor
of the owner, operator, or tenant. Data centers that would
have qualified for a certificate of exemption prior to January
1, 2020 had Public Act 101-31 been in effect, may apply for and
obtain an exemption for subsequent purchases of computer
equipment or enabling software purchased or leased to upgrade,
supplement, or replace computer equipment or enabling software
purchased or leased in the original investment that would have
qualified.

SB3019 Enrolled - 219 - LRB104 20255 HLH 33706 b
The Department of Commerce and Economic Opportunity shall
grant a certificate of exemption under this item (32) to
qualified data centers as defined by Section 605-1025 of the
Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
For the purposes of this item (32):
"Data center" means a building or a series of
buildings rehabilitated or constructed to house working
servers in one physical location or multiple sites within
the State of Illinois.
"Qualified tangible personal property" means:
electrical systems and equipment; climate control and
chilling equipment and systems; mechanical systems and
equipment; monitoring and secure systems; emergency
generators; hardware; computers; servers; data storage
devices; network connectivity equipment; racks; cabinets;
telecommunications cabling infrastructure; raised floor
systems; peripheral components or systems; software;
mechanical, electrical, or plumbing systems; battery
systems; cooling systems and towers; temperature control
systems; other cabling; and other data center
infrastructure equipment and systems necessary to operate
qualified tangible personal property, including fixtures;
and component parts of any of the foregoing, including
installation, maintenance, repair, refurbishment, and
replacement of qualified tangible personal property to

SB3019 Enrolled - 220 - LRB104 20255 HLH 33706 b
generate, transform, transmit, distribute, or manage
electricity necessary to operate qualified tangible
personal property; and all other tangible personal
property that is essential to the operations of a computer
data center. The term "qualified tangible personal
property" also includes building materials physically
incorporated into the qualifying data center. To document
the exemption allowed under this Section, the retailer
must obtain from the purchaser a copy of the certificate
of eligibility issued by the Department of Commerce and
Economic Opportunity.
This item (32) is exempt from the provisions of Section
3-55.
(33) Beginning July 1, 2022, breast pumps, breast pump
collection and storage supplies, and breast pump kits. This
item (33) is exempt from the provisions of Section 3-55. As
used in this item (33):
"Breast pump" means an electrically controlled or
manually controlled pump device designed or marketed to be
used to express milk from a human breast during lactation,
including the pump device and any battery, AC adapter, or
other power supply unit that is used to power the pump
device and is packaged and sold with the pump device at the
time of sale.
"Breast pump collection and storage supplies" means
items of tangible personal property designed or marketed

SB3019 Enrolled - 221 - LRB104 20255 HLH 33706 b
to be used in conjunction with a breast pump to collect
milk expressed from a human breast and to store collected
milk until it is ready for consumption.
"Breast pump collection and storage supplies"
includes, but is not limited to: breast shields and breast
shield connectors; breast pump tubes and tubing adapters;
breast pump valves and membranes; backflow protectors and
backflow protector adaptors; bottles and bottle caps
specific to the operation of the breast pump; and breast
milk storage bags.
"Breast pump collection and storage supplies" does not
include: (1) bottles and bottle caps not specific to the
operation of the breast pump; (2) breast pump travel bags
and other similar carrying accessories, including ice
packs, labels, and other similar products; (3) breast pump
cleaning supplies; (4) nursing bras, bra pads, breast
shells, and other similar products; and (5) creams,
ointments, and other similar products that relieve
breastfeeding-related symptoms or conditions of the
breasts or nipples, unless sold as part of a breast pump
kit that is pre-packaged by the breast pump manufacturer
or distributor.
"Breast pump kit" means a kit that: (1) contains no
more than a breast pump, breast pump collection and
storage supplies, a rechargeable battery for operating the
breast pump, a breastmilk cooler, bottle stands, ice

SB3019 Enrolled - 222 - LRB104 20255 HLH 33706 b
packs, and a breast pump carrying case; and (2) is
pre-packaged as a breast pump kit by the breast pump
manufacturer or distributor.
(34) Tangible personal property sold by or on behalf of
the State Treasurer pursuant to the Revised Uniform Unclaimed
Property Act. This item (34) is exempt from the provisions of
Section 3-55.
(35) Beginning on January 1, 2024, tangible personal
property purchased by an active duty member of the armed
forces of the United States who presents valid military
identification and purchases the property using a form of
payment where the federal government is the payor. The member
of the armed forces must complete, at the point of sale, a form
prescribed by the Department of Revenue documenting that the
transaction is eligible for the exemption under this
paragraph. Retailers must keep the form as documentation of
the exemption in their records for a period of not less than 6
years. "Armed forces of the United States" means the United
States Army, Navy, Air Force, Space Force, Marine Corps, or
Coast Guard. This paragraph is exempt from the provisions of
Section 3-55.
(36) Beginning July 1, 2024, home-delivered meals provided
to Medicare or Medicaid recipients when payment is made by an
intermediary, such as a Medicare Administrative Contractor, a
Managed Care Organization, or a Medicare Advantage
Organization, pursuant to a government contract. This

SB3019 Enrolled - 223 - LRB104 20255 HLH 33706 b
paragraph (36) is exempt from the provisions of Section 3-55.
(37) Beginning on January 1, 2026, as further defined in
Section 3-10, food prepared for immediate consumption and
transferred incident to a sale of service subject to this Act
or the Service Use Tax Act by an entity licensed under the
Hospital Licensing Act, the Nursing Home Care Act, the
Assisted Living and Shared Housing Act, the ID/DD Community
Care Act, the MC/DD Act, the Specialized Mental Health
Rehabilitation Act of 2013, or the Child Care Act of 1969 or by
an entity that holds a permit issued pursuant to the Life Care
Facilities Act. This item (37) is exempt from the provisions
of Section 3-55.
(38) Beginning on January 1, 2026, as further defined in
Section 3-10, food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic liquor taxable under Section 8-1 of the Liquor
Control Act of 1934 beverages, food consisting of or infused
with adult use cannabis, soft drinks, candy, and food that has
been prepared for immediate consumption). This item (38) is
exempt from the provisions of Section 3-55.
(39) The lease of the following tangible personal
property:
(1) computer software transferred subject to a license
that meets the following requirements:
(A) it is evidenced by a written agreement signed
by the licensor and the customer;

SB3019 Enrolled - 224 - LRB104 20255 HLH 33706 b
(i) an electronic agreement in which the
customer accepts the license by means of an
electronic signature that is verifiable and can be
authenticated and is attached to or made part of
the license will comply with this requirement;
(ii) a license agreement in which the customer
electronically accepts the terms by clicking "I
agree" does not comply with this requirement;
(B) it restricts the customer's duplication and
use of the software;
(C) it prohibits the customer from licensing,
sublicensing, or transferring the software to a third
party (except to a related party) without the
permission and continued control of the licensor;
(D) the licensor has a policy of providing another
copy at minimal or no charge if the customer loses or
damages the software, or of permitting the licensee to
make and keep an archival copy, and such policy is
either stated in the license agreement, supported by
the licensor's books and records, or supported by a
notarized statement made under penalties of perjury by
the licensor; and
(E) the customer must destroy or return all copies
of the software to the licensor at the end of the
license period; this provision is deemed to be met, in
the case of a perpetual license, without being set

SB3019 Enrolled - 225 - LRB104 20255 HLH 33706 b
forth in the license agreement; and
(2) property that is subject to a tax on lease
receipts imposed by a home rule unit of local government
if the ordinance imposing that tax was adopted prior to
January 1, 2023.
(Source: P.A. 103-9, Article 5, Section 5-15, eff. 6-7-23;
103-9, Article 15, Section 15-15, eff. 6-7-23; 103-154, eff.
6-30-23; 103-384, eff. 1-1-24; 103-592, eff. 1-1-25; 103-605,
eff. 7-1-24; 103-643, eff. 7-1-24; 103-746, eff. 1-1-25;
103-781, eff. 8-5-24; 103-995, eff. 8-9-24; 104-417, eff.
8-15-25.)
(35 ILCS 115/3-10)
Sec. 3-10. Rate of tax. Unless otherwise provided in this
Section, the tax imposed by this Act is at the rate of 6.25% of
the "selling price", as defined in Section 2 of the Service Use
Tax Act, of the tangible personal property, including, on and
after January 1, 2025, tangible personal property transferred
by lease. For the purpose of computing this tax, in no event
shall the "selling price" be less than the cost price to the
serviceman of the tangible personal property transferred. The
selling price of each item of tangible personal property
transferred as an incident of a sale of service may be shown as
a distinct and separate item on the serviceman's billing to
the service customer. If the selling price is not so shown, the
selling price of the tangible personal property is deemed to

SB3019 Enrolled - 226 - LRB104 20255 HLH 33706 b
be 50% of the serviceman's entire billing to the service
customer. When, however, a serviceman contracts to design,
develop, and produce special order machinery or equipment, the
tax imposed by this Act shall be based on the serviceman's cost
price of the tangible personal property transferred incident
to the completion of the contract.
Beginning on July 1, 2000 and through December 31, 2000,
with respect to motor fuel, as defined in Section 1.1 of the
Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
the Use Tax Act, the tax is imposed at the rate of 1.25%.
With respect to gasohol, as defined in the Use Tax Act, the
tax imposed by this Act shall apply to (i) 70% of the cost
price of property transferred as an incident to the sale of
service on or after January 1, 1990, and before July 1, 2003,
(ii) 80% of the selling price of property transferred as an
incident to the sale of service on or after July 1, 2003 and on
or before July 1, 2017, (iii) 100% of the selling price of
property transferred as an incident to the sale of service
after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
the selling price of property transferred as an incident to
the sale of service on or after January 1, 2024 and on or
before December 31, 2028, and (v) 100% of the selling price of
property transferred as an incident to the sale of service
after December 31, 2028. If, at any time, however, the tax
under this Act on sales of gasohol, as defined in the Use Tax
Act, is imposed at the rate of 1.25%, then the tax imposed by

SB3019 Enrolled - 227 - LRB104 20255 HLH 33706 b
this Act applies to 100% of the proceeds of sales of gasohol
made during that time.
With respect to mid-range ethanol blends, as defined in
Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
applies to (i) 80% of the selling price of property
transferred as an incident to the sale of service on or after
January 1, 2024 and on or before December 31, 2028 and (ii)
100% of the selling price of property transferred as an
incident to the sale of service after December 31, 2028. If, at
any time, however, the tax under this Act on sales of mid-range
ethanol blends is imposed at the rate of 1.25%, then the tax
imposed by this Act applies to 100% of the selling price of
mid-range ethanol blends transferred as an incident to the
sale of service during that time.
With respect to majority blended ethanol fuel, as defined
in the Use Tax Act, the tax imposed by this Act does not apply
to the selling price of property transferred as an incident to
the sale of service on or after July 1, 2003 and on or before
December 31, 2028 but applies to 100% of the selling price
thereafter.
With respect to biodiesel blends, as defined in the Use
Tax Act, with no less than 1% and no more than 10% biodiesel,
the tax imposed by this Act applies to (i) 80% of the selling
price of property transferred as an incident to the sale of
service on or after July 1, 2003 and on or before December 31,
2018 and (ii) 100% of the proceeds of the selling price after

SB3019 Enrolled - 228 - LRB104 20255 HLH 33706 b
December 31, 2018 and before January 1, 2024. On and after
January 1, 2024 and on or before December 31, 2030, the
taxation of biodiesel, renewable diesel, and biodiesel blends
shall be as provided in Section 3-5.1 of the Use Tax Act. If,
at any time, however, the tax under this Act on sales of
biodiesel blends, as defined in the Use Tax Act, with no less
than 1% and no more than 10% biodiesel is imposed at the rate
of 1.25%, then the tax imposed by this Act applies to 100% of
the proceeds of sales of biodiesel blends with no less than 1%
and no more than 10% biodiesel made during that time.
With respect to biodiesel, as defined in the Use Tax Act,
and biodiesel blends, as defined in the Use Tax Act, with more
than 10% but no more than 99% biodiesel material, the tax
imposed by this Act does not apply to the proceeds of the
selling price of property transferred as an incident to the
sale of service on or after July 1, 2003 and on or before
December 31, 2023. On and after January 1, 2024 and on or
before December 31, 2030, the taxation of biodiesel, renewable
diesel, and biodiesel blends shall be as provided in Section
3-5.1 of the Use Tax Act.
At the election of any registered serviceman made for each
fiscal year, for whom the aggregate annual cost price of
tangible personal property transferred as an incident to the
sales of service is less than 35%, or 75% in the case of
servicemen transferring prescription drugs or servicemen
engaged in graphic arts production, of the aggregate annual

SB3019 Enrolled - 229 - LRB104 20255 HLH 33706 b
total gross receipts from all sales of service, the tax
imposed by this Act shall be based on the serviceman's cost
price of the tangible personal property transferred incident
to the sale of those services. This election may also be made
by a serviceman maintaining a place of business in this State
who makes retail sales from outside of this State to Illinois
customers but is not required to be registered under Section
2a of the Retailers' Occupation Tax Act. Beginning January 1,
2026, this election shall not apply to any sale of service made
through a marketplace that has met the threshold in subsection
(d) of Section 3 of this Act.
Beginning January 1, 2026, the tax shall be imposed at the
rate of 6.25% of 50% of the entire billing to the service
customer for all sales of service made through a marketplace
that has met the threshold in subsection (d) of Section 3 of
this Act. In no event shall 50% of the entire billing be less
than the cost price of the property to the marketplace
serviceman or the marketplace facilitator on its own sales of
service.
Until July 1, 2022 and from July 1, 2023 through December
31, 2025, the tax shall be imposed at the rate of 1% on food
prepared for immediate consumption and transferred incident to
a sale of service subject to this Act or the Service Use Tax
Act by an entity licensed under the Hospital Licensing Act,
the Nursing Home Care Act, the Assisted Living and Shared
Housing Act, the ID/DD Community Care Act, the MC/DD Act, the

SB3019 Enrolled - 230 - LRB104 20255 HLH 33706 b
Specialized Mental Health Rehabilitation Act of 2013, or the
Child Care Act of 1969, or an entity that holds a permit issued
pursuant to the Life Care Facilities Act. Until July 1, 2022
and from July 1, 2023 through December 31, 2025, the tax shall
also be imposed at the rate of 1% on food for human consumption
that is to be consumed off the premises where it is sold (other
than alcoholic beverages, food consisting of or infused with
adult use cannabis, soft drinks, and food that has been
prepared for immediate consumption and is not otherwise
included in this paragraph).
Beginning on July 1, 2022 and until July 1, 2023, the tax
shall be imposed at the rate of 0% on food prepared for
immediate consumption and transferred incident to a sale of
service subject to this Act or the Service Use Tax Act by an
entity licensed under the Hospital Licensing Act, the Nursing
Home Care Act, the Assisted Living and Shared Housing Act, the
ID/DD Community Care Act, the MC/DD Act, the Specialized
Mental Health Rehabilitation Act of 2013, or the Child Care
Act of 1969, or an entity that holds a permit issued pursuant
to the Life Care Facilities Act. Beginning July 1, 2022 and
until July 1, 2023, the tax shall also be imposed at the rate
of 0% on food for human consumption that is to be consumed off
the premises where it is sold (other than alcoholic beverages,
food consisting of or infused with adult use cannabis, soft
drinks, and food that has been prepared for immediate
consumption and is not otherwise included in this paragraph).

SB3019 Enrolled - 231 - LRB104 20255 HLH 33706 b
On and after January 1, 2026, food prepared for immediate
consumption and transferred incident to a sale of service
subject to this Act or the Service Use Tax Act by an entity
licensed under the Hospital Licensing Act, the Nursing Home
Care Act, the Assisted Living and Shared Housing Act, the
ID/DD Community Care Act, the MC/DD Act, the Specialized
Mental Health Rehabilitation Act of 2013, or the Child Care
Act of 1969, or an entity that holds a permit issued pursuant
to the Life Care Facilities Act is exempt from the tax imposed
by this Act. On and after January 1, 2026, food for human
consumption that is to be consumed off the premises where it is
sold (other than alcoholic liquor taxable under Section 8-1 of
the Liquor Control Act of 1934 beverages, food consisting of
or infused with adult use cannabis, soft drinks, candy, and
food that has been prepared for immediate consumption and is
not otherwise included in this paragraph) is exempt from the
tax imposed by this Act.
The tax shall be imposed at the rate of 1% on prescription
and nonprescription medicines, drugs, medical appliances,
products classified as Class III medical devices by the United
States Food and Drug Administration that are used for cancer
treatment pursuant to a prescription, as well as any
accessories and components related to those devices,
modifications to a motor vehicle for the purpose of rendering
it usable by a person with a disability, and insulin, blood
sugar testing materials, syringes, and needles used by human

SB3019 Enrolled - 232 - LRB104 20255 HLH 33706 b
diabetics. For the purposes of this Section, until September
1, 2009: the term "soft drinks" means any complete, finished,
ready-to-use, non-alcoholic drink, whether carbonated or not,
including, but not limited to, soda water, cola, fruit juice,
vegetable juice, carbonated water, and all other preparations
commonly known as soft drinks of whatever kind or description
that are contained in any closed or sealed can, carton, or
container, regardless of size; but "soft drinks" does not
include coffee, tea, non-carbonated water, infant formula,
milk or milk products as defined in the Grade A Pasteurized
Milk and Milk Products Act, or drinks containing 50% or more
natural fruit or vegetable juice.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "soft drinks" means non-alcoholic
beverages that contain natural or artificial sweeteners. "Soft
drinks" does not include beverages that contain milk or milk
products, soy, rice or similar milk substitutes, or greater
than 50% of vegetable or fruit juice by volume.
Until August 1, 2009, and notwithstanding any other
provisions of this Act, "food for human consumption that is to
be consumed off the premises where it is sold" includes all
food sold through a vending machine, except soft drinks and
food products that are dispensed hot from a vending machine,
regardless of the location of the vending machine. Beginning
August 1, 2009, and notwithstanding any other provisions of
this Act, "food for human consumption that is to be consumed

SB3019 Enrolled - 233 - LRB104 20255 HLH 33706 b
off the premises where it is sold" includes all food sold
through a vending machine, except soft drinks, candy, and food
products that are dispensed hot from a vending machine,
regardless of the location of the vending machine.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "food for human consumption that
is to be consumed off the premises where it is sold" does not
include candy. For purposes of this Section, "candy" means a
preparation of sugar, honey, or other natural or artificial
sweeteners in combination with chocolate, fruits, nuts or
other ingredients or flavorings in the form of bars, drops, or
pieces. "Candy" does not include any preparation that contains
flour or requires refrigeration.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "nonprescription medicines and
drugs" does not include grooming and hygiene products. For
purposes of this Section, "grooming and hygiene products"
includes, but is not limited to, soaps and cleaning solutions,
shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
lotions and screens, unless those products are available by
prescription only, regardless of whether the products meet the
definition of "over-the-counter-drugs". For the purposes of
this paragraph, "over-the-counter-drug" means a drug for human
use that contains a label that identifies the product as a drug
as required by 21 CFR 201.66. The "over-the-counter-drug"
label includes:

SB3019 Enrolled - 234 - LRB104 20255 HLH 33706 b
(A) a "Drug Facts" panel; or
(B) a statement of the "active ingredient(s)" with a
list of those ingredients contained in the compound,
substance or preparation.
Beginning on January 1, 2014 (the effective date of Public
Act 98-122), "prescription and nonprescription medicines and
drugs" includes medical cannabis purchased from a registered
dispensing organization under the Compassionate Use of Medical
Cannabis Program Act.
As used in this Section, "adult use cannabis" means
cannabis subject to tax under the Cannabis Cultivation
Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
and does not include cannabis subject to tax under the
Compassionate Use of Medical Cannabis Program Act.
(Source: P.A. 103-9, eff. 6-7-23; 103-154, eff. 6-30-23;
103-592, eff. 1-1-25; 103-781, eff. 8-5-24; 104-6, eff.
6-16-25; 104-417, eff. 8-15-25.)
Section 70-40. The Retailers' Occupation Tax Act is
amended by changing Sections 2-5, 2-10, and 2-13 as follows:
(35 ILCS 120/2-5)
Sec. 2-5. Exemptions. Gross receipts from proceeds from
the sale, which, on and after January 1, 2025, includes the
lease, of the following tangible personal property are exempt
from the tax imposed by this Act:

SB3019 Enrolled - 235 - LRB104 20255 HLH 33706 b
(1) Farm chemicals.
(2) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by
the purchaser to be used primarily for production
agriculture or State or federal agricultural programs,
including individual replacement parts for the machinery
and equipment, including machinery and equipment purchased
for lease, and including implements of husbandry defined
in Section 1-130 of the Illinois Vehicle Code, farm
machinery and agricultural chemical and fertilizer
spreaders, and nurse wagons required to be registered
under Section 3-809 of the Illinois Vehicle Code, but
excluding other motor vehicles required to be registered
under the Illinois Vehicle Code. Horticultural polyhouses
or hoop houses used for propagating, growing, or
overwintering plants shall be considered farm machinery
and equipment under this item (2). Agricultural chemical
tender tanks and dry boxes shall include units sold
separately from a motor vehicle required to be licensed
and units sold mounted on a motor vehicle required to be
licensed, if the selling price of the tender is separately
stated.
Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be
installed on farm machinery and equipment including, but
not limited to, tractors, harvesters, sprayers, planters,

SB3019 Enrolled - 236 - LRB104 20255 HLH 33706 b
seeders, or spreaders. Precision farming equipment
includes, but is not limited to, soil testing sensors,
computers, monitors, software, global positioning and
mapping systems, and other such equipment.
Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in
the computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not
limited to, the collection, monitoring, and correlation of
animal and crop data for the purpose of formulating animal
diets and agricultural chemicals.
Beginning on January 1, 2024, farm machinery and
equipment also includes electrical power generation
equipment used primarily for production agriculture.
This item (2) is exempt from the provisions of Section
2-70.
(3) Until July 1, 2003, distillation machinery and
equipment, sold as a unit or kit, assembled or installed
by the retailer, certified by the user to be used only for
the production of ethyl alcohol that will be used for
consumption as motor fuel or as a component of motor fuel
for the personal use of the user, and not subject to sale
or resale.
(4) Until July 1, 2003 and beginning again September
1, 2004 through August 30, 2014, graphic arts machinery
and equipment, including repair and replacement parts,

SB3019 Enrolled - 237 - LRB104 20255 HLH 33706 b
both new and used, and including that manufactured on
special order or purchased for lease, certified by the
purchaser to be used primarily for graphic arts
production. Equipment includes chemicals or chemicals
acting as catalysts but only if the chemicals or chemicals
acting as catalysts effect a direct and immediate change
upon a graphic arts product. Beginning on July 1, 2017,
graphic arts machinery and equipment is included in the
manufacturing and assembling machinery and equipment
exemption under paragraph (14).
(5) A motor vehicle that is used for automobile
renting, as defined in the Automobile Renting Occupation
and Use Tax Act. This paragraph is exempt from the
provisions of Section 2-70.
(6) Personal property sold by a teacher-sponsored
student organization affiliated with an elementary or
secondary school located in Illinois.
(7) Until July 1, 2003, proceeds of that portion of
the selling price of a passenger car the sale of which is
subject to the Replacement Vehicle Tax.
(8) Personal property sold to an Illinois county fair
association for use in conducting, operating, or promoting
the county fair.
(9) Personal property sold to a not-for-profit arts or
cultural organization that establishes, by proof required
by the Department by rule, that it has received an

SB3019 Enrolled - 238 - LRB104 20255 HLH 33706 b
exemption under Section 501(c)(3) of the Internal Revenue
Code and that is organized and operated primarily for the
presentation or support of arts or cultural programming,
activities, or services. These organizations include, but
are not limited to, music and dramatic arts organizations
such as symphony orchestras and theatrical groups, arts
and cultural service organizations, local arts councils,
visual arts organizations, and media arts organizations.
On and after July 1, 2001 (the effective date of Public Act
92-35), however, an entity otherwise eligible for this
exemption shall not make tax-free purchases unless it has
an active identification number issued by the Department.
(10) Personal property sold by a corporation, society,
association, foundation, institution, or organization,
other than a limited liability company, that is organized
and operated as a not-for-profit service enterprise for
the benefit of persons 65 years of age or older if the
personal property was not purchased by the enterprise for
the purpose of resale by the enterprise.
(11) Except as otherwise provided in this Section,
personal property sold to a governmental body, to a
corporation, society, association, foundation, or
institution organized and operated exclusively for
charitable, religious, or educational purposes, or to a
not-for-profit corporation, society, association,
foundation, institution, or organization that has no

SB3019 Enrolled - 239 - LRB104 20255 HLH 33706 b
compensated officers or employees and that is organized
and operated primarily for the recreation of persons 55
years of age or older. A limited liability company may
qualify for the exemption under this paragraph only if the
limited liability company is organized and operated
exclusively for educational purposes. On and after July 1,
1987, however, no entity otherwise eligible for this
exemption shall make tax-free purchases unless it has an
active identification number issued by the Department.
(12) (Blank).
(12-5) On and after July 1, 2003 and through June 30,
2004, motor vehicles of the second division with a gross
vehicle weight in excess of 8,000 pounds that are subject
to the commercial distribution fee imposed under Section
3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
2004 and through June 30, 2005, the use in this State of
motor vehicles of the second division: (i) with a gross
vehicle weight rating in excess of 8,000 pounds; (ii) that
are subject to the commercial distribution fee imposed
under Section 3-815.1 of the Illinois Vehicle Code; and
(iii) that are primarily used for commercial purposes.
Through June 30, 2005, this exemption applies to repair
and replacement parts added after the initial purchase of
such a motor vehicle if that motor vehicle is used in a
manner that would qualify for the rolling stock exemption
otherwise provided for in this Act. For purposes of this

SB3019 Enrolled - 240 - LRB104 20255 HLH 33706 b
paragraph, "used for commercial purposes" means the
transportation of persons or property in furtherance of
any commercial or industrial enterprise whether for-hire
or not.
(13) Proceeds from sales to owners or lessors,
lessees, or shippers of tangible personal property that is
utilized by interstate carriers for hire for use as
rolling stock moving in interstate commerce and equipment
operated by a telecommunications provider, licensed as a
common carrier by the Federal Communications Commission,
which is permanently installed in or affixed to aircraft
moving in interstate commerce.
(14) Machinery and equipment that will be used by the
purchaser, or a lessee of the purchaser, primarily in the
process of manufacturing or assembling tangible personal
property for wholesale or retail sale or lease, whether
the sale or lease is made directly by the manufacturer or
by some other person, whether the materials used in the
process are owned by the manufacturer or some other
person, or whether the sale or lease is made apart from or
as an incident to the seller's engaging in the service
occupation of producing machines, tools, dies, jigs,
patterns, gauges, or other similar items of no commercial
value on special order for a particular purchaser. The
exemption provided by this paragraph (14) does not include
machinery and equipment used in (i) the generation of

SB3019 Enrolled - 241 - LRB104 20255 HLH 33706 b
electricity for wholesale or retail sale; (ii) the
generation or treatment of natural or artificial gas for
wholesale or retail sale that is delivered to customers
through pipes, pipelines, or mains; or (iii) the treatment
of water for wholesale or retail sale that is delivered to
customers through pipes, pipelines, or mains. The
provisions of Public Act 98-583 are declaratory of
existing law as to the meaning and scope of this
exemption. Beginning on July 1, 2017, the exemption
provided by this paragraph (14) includes, but is not
limited to, graphic arts machinery and equipment, as
defined in paragraph (4) of this Section.
(15) Proceeds of mandatory service charges separately
stated on customers' bills for purchase and consumption of
food and beverages, to the extent that the proceeds of the
service charge are in fact turned over as tips or as a
substitute for tips to the employees who participate
directly in preparing, serving, hosting or cleaning up the
food or beverage function with respect to which the
service charge is imposed.
(16) Tangible personal property sold to a purchaser if
the purchaser is exempt from use tax by operation of
federal law. This paragraph is exempt from the provisions
of Section 2-70.
(17) Tangible personal property sold to a common
carrier by rail or motor that receives the physical

SB3019 Enrolled - 242 - LRB104 20255 HLH 33706 b
possession of the property in Illinois and that transports
the property, or shares with another common carrier in the
transportation of the property, out of Illinois on a
standard uniform bill of lading showing the seller of the
property as the shipper or consignor of the property to a
destination outside Illinois, for use outside Illinois.
(18) Legal tender, currency, medallions, or gold or
silver coinage issued by the State of Illinois, the
government of the United States of America, or the
government of any foreign country, and bullion.
(19) Until July 1, 2003, oil field exploration,
drilling, and production equipment, including (i) rigs and
parts of rigs, rotary rigs, cable tool rigs, and workover
rigs, (ii) pipe and tubular goods, including casing and
drill strings, (iii) pumps and pump-jack units, (iv)
storage tanks and flow lines, (v) any individual
replacement part for oil field exploration, drilling, and
production equipment, and (vi) machinery and equipment
purchased for lease; but excluding motor vehicles required
to be registered under the Illinois Vehicle Code.
(20) Photoprocessing machinery and equipment,
including repair and replacement parts, both new and used,
including that manufactured on special order, certified by
the purchaser to be used primarily for photoprocessing,
and including photoprocessing machinery and equipment
purchased for lease.

SB3019 Enrolled - 243 - LRB104 20255 HLH 33706 b
(21) Until July 1, 2028, coal and aggregate
exploration, mining, off-highway hauling, processing,
maintenance, and reclamation equipment, including
replacement parts and equipment, and including equipment
purchased for lease, but excluding motor vehicles required
to be registered under the Illinois Vehicle Code. The
changes made to this Section by Public Act 97-767 apply on
and after July 1, 2003, but no claim for credit or refund
is allowed on or after August 16, 2013 (the effective date
of Public Act 98-456) for such taxes paid during the
period beginning July 1, 2003 and ending on August 16,
2013 (the effective date of Public Act 98-456).
(22) Until June 30, 2013, fuel and petroleum products
sold to or used by an air carrier, certified by the carrier
to be used for consumption, shipment, or storage in the
conduct of its business as an air common carrier, for a
flight destined for or returning from a location or
locations outside the United States without regard to
previous or subsequent domestic stopovers.
Beginning July 1, 2013, fuel and petroleum products
sold to or used by an air carrier, certified by the carrier
to be used for consumption, shipment, or storage in the
conduct of its business as an air common carrier, for a
flight that (i) is engaged in foreign trade or is engaged
in trade between the United States and any of its
possessions and (ii) transports at least one individual or

SB3019 Enrolled - 244 - LRB104 20255 HLH 33706 b
package for hire from the city of origination to the city
of final destination on the same aircraft, without regard
to a change in the flight number of that aircraft.
(23) A transaction in which the purchase order is
received by a florist who is located outside Illinois, but
who has a florist located in Illinois deliver the property
to the purchaser or the purchaser's donee in Illinois.
(24) Fuel consumed or used in the operation of ships,
barges, or vessels that are used primarily in or for the
transportation of property or the conveyance of persons
for hire on rivers bordering on this State if the fuel is
delivered by the seller to the purchaser's barge, ship, or
vessel while it is afloat upon that bordering river.
(25) Except as provided in items (25-5) and (25-6) of
this Section, a motor vehicle sold in this State to a
nonresident even though the motor vehicle is delivered to
the nonresident in this State, if the motor vehicle is not
to be titled in this State, and if a drive-away permit is
issued to the motor vehicle as provided in Section 3-603
of the Illinois Vehicle Code or if the nonresident
purchaser has vehicle registration plates to transfer to
the motor vehicle upon returning to his or her home state.
The issuance of the drive-away permit or having the
out-of-state registration plates to be transferred is
prima facie evidence that the motor vehicle will not be
titled in this State.

SB3019 Enrolled - 245 - LRB104 20255 HLH 33706 b
(25-5) The exemption under item (25) does not apply if
the state in which the motor vehicle will be titled does
not allow a reciprocal exemption for a motor vehicle sold
and delivered in that state to an Illinois resident but
titled in Illinois. The tax collected under this Act on
the sale of a motor vehicle in this State to a resident of
another state that does not allow a reciprocal exemption
shall be imposed at a rate equal to the state's rate of tax
on taxable property in the state in which the purchaser is
a resident, except that the tax shall not exceed the tax
that would otherwise be imposed under this Act. At the
time of the sale, the purchaser shall execute a statement,
signed under penalty of perjury, of his or her intent to
title the vehicle in the state in which the purchaser is a
resident within 30 days after the sale and of the fact of
the payment to the State of Illinois of tax in an amount
equivalent to the state's rate of tax on taxable property
in his or her state of residence and shall submit the
statement to the appropriate tax collection agency in his
or her state of residence. In addition, the retailer must
retain a signed copy of the statement in his or her
records. Nothing in this item shall be construed to
require the removal of the vehicle from this state
following the filing of an intent to title the vehicle in
the purchaser's state of residence if the purchaser titles
the vehicle in his or her state of residence within 30 days

SB3019 Enrolled - 246 - LRB104 20255 HLH 33706 b
after the date of sale. The tax collected under this Act in
accordance with this item (25-5) shall be proportionately
distributed as if the tax were collected at the 6.25%
general rate imposed under this Act.
(25-6) There is a rebuttable presumption that the
exemption under item (25) does not apply if the purchaser
is a limited liability company and a member of the limited
liability company is a resident of Illinois. This
presumption may be rebutted by other evidence, such as
evidence the motor vehicle is insured at a garaging or
storage address outside Illinois or other evidence of the
physical address at which the motor vehicle will be
permanently stored or garaged outside Illinois.
(25-7) Beginning on July 1, 2007, no tax is imposed
under this Act on the sale of an aircraft, as defined in
Section 3 of the Illinois Aeronautics Act, if all of the
following conditions are met:
(1) the aircraft leaves this State within 15 days
after the later of either the issuance of the final
billing for the sale of the aircraft, or the
authorized approval for return to service, completion
of the maintenance record entry, and completion of the
test flight and ground test for inspection, as
required by 14 CFR 91.407;
(2) the aircraft is not based or registered in
this State after the sale of the aircraft; and

SB3019 Enrolled - 247 - LRB104 20255 HLH 33706 b
(3) the seller retains in his or her books and
records and provides to the Department a signed and
dated certification from the purchaser, on a form
prescribed by the Department, certifying that the
requirements of this item (25-7) are met. The
certificate must also include the name and address of
the purchaser, the address of the location where the
aircraft is to be titled or registered, the address of
the primary physical location of the aircraft, and
other information that the Department may reasonably
require.
For purposes of this item (25-7):
"Based in this State" means hangared, stored, or
otherwise used, excluding post-sale customizations as
defined in this Section, for 10 or more days in each
12-month period immediately following the date of the sale
of the aircraft.
"Registered in this State" means an aircraft
registered with the Department of Transportation,
Aeronautics Division, or titled or registered with the
Federal Aviation Administration to an address located in
this State.
This paragraph (25-7) is exempt from the provisions of
Section 2-70.
(26) Semen used for artificial insemination of
livestock for direct agricultural production.

SB3019 Enrolled - 248 - LRB104 20255 HLH 33706 b
(27) Horses, or interests in horses, registered with
and meeting the requirements of any of the Arabian Horse
Club Registry of America, Appaloosa Horse Club, American
Quarter Horse Association, United States Trotting
Association, or Jockey Club, as appropriate, used for
purposes of breeding or racing for prizes. This item (27)
is exempt from the provisions of Section 2-70, and the
exemption provided for under this item (27) applies for
all periods beginning May 30, 1995, but no claim for
credit or refund is allowed on or after January 1, 2008
(the effective date of Public Act 95-88) for such taxes
paid during the period beginning May 30, 2000 and ending
on January 1, 2008 (the effective date of Public Act
95-88).
(28) Computers and communications equipment utilized
for any hospital purpose and equipment used in the
diagnosis, analysis, or treatment of hospital patients
sold to a lessor who leases the equipment, under a lease of
one year or longer executed or in effect at the time of the
purchase, to a hospital that has been issued an active tax
exemption identification number by the Department under
Section 1g of this Act.
(29) Personal property sold to a lessor who leases the
property, under a lease of one year or longer executed or
in effect at the time of the purchase, to a governmental
body that has been issued an active tax exemption

SB3019 Enrolled - 249 - LRB104 20255 HLH 33706 b
identification number by the Department under Section 1g
of this Act.
(30) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on
or before December 31, 2004, personal property that is
donated for disaster relief to be used in a State or
federally declared disaster area in Illinois or bordering
Illinois by a manufacturer or retailer that is registered
in this State to a corporation, society, association,
foundation, or institution that has been issued a sales
tax exemption identification number by the Department that
assists victims of the disaster who reside within the
declared disaster area.
(31) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on
or before December 31, 2004, personal property that is
used in the performance of infrastructure repairs in this
State, including, but not limited to, municipal roads and
streets, access roads, bridges, sidewalks, waste disposal
systems, water and sewer line extensions, water
distribution and purification facilities, storm water
drainage and retention facilities, and sewage treatment
facilities, resulting from a State or federally declared
disaster in Illinois or bordering Illinois when such
repairs are initiated on facilities located in the
declared disaster area within 6 months after the disaster.

SB3019 Enrolled - 250 - LRB104 20255 HLH 33706 b
(32) Beginning July 1, 1999, game or game birds sold
at a "game breeding and hunting preserve area" as that
term is used in the Wildlife Code. This paragraph is
exempt from the provisions of Section 2-70.
(33) A motor vehicle, as that term is defined in
Section 1-146 of the Illinois Vehicle Code, that is
donated to a corporation, limited liability company,
society, association, foundation, or institution that is
determined by the Department to be organized and operated
exclusively for educational purposes. For purposes of this
exemption, "a corporation, limited liability company,
society, association, foundation, or institution organized
and operated exclusively for educational purposes" means
all tax-supported public schools, private schools that
offer systematic instruction in useful branches of
learning by methods common to public schools and that
compare favorably in their scope and intensity with the
course of study presented in tax-supported schools, and
vocational or technical schools or institutes organized
and operated exclusively to provide a course of study of
not less than 6 weeks duration and designed to prepare
individuals to follow a trade or to pursue a manual,
technical, mechanical, industrial, business, or commercial
occupation.
(34) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for

SB3019 Enrolled - 251 - LRB104 20255 HLH 33706 b
the benefit of a public or private elementary or secondary
school, a group of those schools, or one or more school
districts if the events are sponsored by an entity
recognized by the school district that consists primarily
of volunteers and includes parents and teachers of the
school children. This paragraph does not apply to
fundraising events (i) for the benefit of private home
instruction or (ii) for which the fundraising entity
purchases the personal property sold at the events from
another individual or entity that sold the property for
the purpose of resale by the fundraising entity and that
profits from the sale to the fundraising entity. This
paragraph is exempt from the provisions of Section 2-70.
(35) Beginning January 1, 2000 and through December
31, 2001, new or used automatic vending machines that
prepare and serve hot food and beverages, including
coffee, soup, and other items, and replacement parts for
these machines. Beginning January 1, 2002 and through June
30, 2003, machines and parts for machines used in
commercial, coin-operated amusement and vending business
if a use or occupation tax is paid on the gross receipts
derived from the use of the commercial, coin-operated
amusement and vending machines. This paragraph is exempt
from the provisions of Section 2-70.
(35-5) Beginning August 23, 2001 and through June 30,
2016, food for human consumption that is to be consumed

SB3019 Enrolled - 252 - LRB104 20255 HLH 33706 b
off the premises where it is sold (other than alcoholic
beverages, soft drinks, and food that has been prepared
for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances, and
insulin, urine testing materials, syringes, and needles
used by diabetics, for human use, when purchased for use
by a person receiving medical assistance under Article V
of the Illinois Public Aid Code who resides in a licensed
long-term care facility, as defined in the Nursing Home
Care Act, or a licensed facility as defined in the ID/DD
Community Care Act, the MC/DD Act, or the Specialized
Mental Health Rehabilitation Act of 2013.
(36) Beginning August 2, 2001, computers and
communications equipment utilized for any hospital purpose
and equipment used in the diagnosis, analysis, or
treatment of hospital patients sold to a lessor who leases
the equipment, under a lease of one year or longer
executed or in effect at the time of the purchase, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g
of this Act. This paragraph is exempt from the provisions
of Section 2-70.
(37) Beginning August 2, 2001, personal property sold
to a lessor who leases the property, under a lease of one
year or longer executed or in effect at the time of the
purchase, to a governmental body that has been issued an

SB3019 Enrolled - 253 - LRB104 20255 HLH 33706 b
active tax exemption identification number by the
Department under Section 1g of this Act. This paragraph is
exempt from the provisions of Section 2-70.
(38) Beginning on January 1, 2002 and through June 30,
2016, tangible personal property purchased from an
Illinois retailer by a taxpayer engaged in centralized
purchasing activities in Illinois who will, upon receipt
of the property in Illinois, temporarily store the
property in Illinois (i) for the purpose of subsequently
transporting it outside this State for use or consumption
thereafter solely outside this State or (ii) for the
purpose of being processed, fabricated, or manufactured
into, attached to, or incorporated into other tangible
personal property to be transported outside this State and
thereafter used or consumed solely outside this State. The
Director of Revenue shall, pursuant to rules adopted in
accordance with the Illinois Administrative Procedure Act,
issue a permit to any taxpayer in good standing with the
Department who is eligible for the exemption under this
paragraph (38). The permit issued under this paragraph
(38) shall authorize the holder, to the extent and in the
manner specified in the rules adopted under this Act, to
purchase tangible personal property from a retailer exempt
from the taxes imposed by this Act. Taxpayers shall
maintain all necessary books and records to substantiate
the use and consumption of all such tangible personal

SB3019 Enrolled - 254 - LRB104 20255 HLH 33706 b
property outside of the State of Illinois.
(39) Beginning January 1, 2008, tangible personal
property used in the construction or maintenance of a
community water supply, as defined under Section 3.145 of
the Environmental Protection Act, that is operated by a
not-for-profit corporation that holds a valid water supply
permit issued under Title IV of the Environmental
Protection Act. This paragraph is exempt from the
provisions of Section 2-70.
(40) Beginning January 1, 2010 and continuing through
December 31, 2029, materials, parts, equipment,
components, and furnishings incorporated into or upon an
aircraft as part of the modification, refurbishment,
completion, replacement, repair, or maintenance of the
aircraft. This exemption includes consumable supplies used
in the modification, refurbishment, completion,
replacement, repair, and maintenance of aircraft. However,
until January 1, 2024, this exemption excludes any
materials, parts, equipment, components, and consumable
supplies used in the modification, replacement, repair,
and maintenance of aircraft engines or power plants,
whether such engines or power plants are installed or
uninstalled upon any such aircraft. "Consumable supplies"
include, but are not limited to, adhesive, tape,
sandpaper, general purpose lubricants, cleaning solution,
latex gloves, and protective films.

SB3019 Enrolled - 255 - LRB104 20255 HLH 33706 b
Beginning January 1, 2010 and continuing through
December 31, 2023, this exemption applies only to the sale
of qualifying tangible personal property to persons who
modify, refurbish, complete, replace, or maintain an
aircraft and who (i) hold an Air Agency Certificate and
are empowered to operate an approved repair station by the
Federal Aviation Administration, (ii) have a Class IV
Rating, and (iii) conduct operations in accordance with
Part 145 of the Federal Aviation Regulations. The
exemption does not include aircraft operated by a
commercial air carrier providing scheduled passenger air
service pursuant to authority issued under Part 121 or
Part 129 of the Federal Aviation Regulations. From January
1, 2024 through December 31, 2029, this exemption applies
only to the sale of qualifying tangible personal property
to: (A) persons who modify, refurbish, complete, repair,
replace, or maintain aircraft and who (i) hold an Air
Agency Certificate and are empowered to operate an
approved repair station by the Federal Aviation
Administration, (ii) have a Class IV Rating, and (iii)
conduct operations in accordance with Part 145 of the
Federal Aviation Regulations; and (B) persons who engage
in the modification, replacement, repair, and maintenance
of aircraft engines or power plants without regard to
whether or not those persons meet the qualifications of
item (A).

SB3019 Enrolled - 256 - LRB104 20255 HLH 33706 b
The changes made to this paragraph (40) by Public Act
98-534 are declarative of existing law. It is the intent
of the General Assembly that the exemption under this
paragraph (40) applies continuously from January 1, 2010
through December 31, 2024; however, no claim for credit or
refund is allowed for taxes paid as a result of the
disallowance of this exemption on or after January 1, 2015
and prior to February 5, 2020 (the effective date of
Public Act 101-629).
(41) Tangible personal property sold to a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall,
but only if the legal title to the municipal convention
hall is transferred to the municipality without any
further consideration by or on behalf of the municipality
at the time of the completion of the municipal convention
hall or upon the retirement or redemption of any bonds or
other debt instruments issued by the public-facilities
corporation in connection with the development of the
municipal convention hall. This exemption includes
existing public-facilities corporations as provided in
Section 11-65-25 of the Illinois Municipal Code. This
paragraph is exempt from the provisions of Section 2-70.
(42) Beginning January 1, 2017 and through December
31, 2026, menstrual pads, tampons, and menstrual cups.

SB3019 Enrolled - 257 - LRB104 20255 HLH 33706 b
(43) Merchandise that is subject to the Rental
Purchase Agreement Occupation and Use Tax. The purchaser
must certify that the item is purchased to be rented
subject to a rental-purchase agreement, as defined in the
Rental-Purchase Agreement Act, and provide proof of
registration under the Rental Purchase Agreement
Occupation and Use Tax Act. This paragraph is exempt from
the provisions of Section 2-70.
(44) Qualified tangible personal property used in the
construction or operation of a data center that has been
granted a certificate of exemption by the Department of
Commerce and Economic Opportunity, whether that tangible
personal property is purchased by the owner, operator, or
tenant of the data center or by a contractor or
subcontractor of the owner, operator, or tenant. Data
centers that would have qualified for a certificate of
exemption prior to January 1, 2020 had Public Act 101-31
been in effect, may apply for and obtain an exemption for
subsequent purchases of computer equipment or enabling
software purchased or leased to upgrade, supplement, or
replace computer equipment or enabling software purchased
or leased in the original investment that would have
qualified.
The Department of Commerce and Economic Opportunity
shall grant a certificate of exemption under this item
(44) to qualified data centers as defined by Section

SB3019 Enrolled - 258 - LRB104 20255 HLH 33706 b
605-1025 of the Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of
Illinois.
For the purposes of this item (44):
"Data center" means a building or a series of
buildings rehabilitated or constructed to house
working servers in one physical location or multiple
sites within the State of Illinois.
"Qualified tangible personal property" means:
electrical systems and equipment; climate control and
chilling equipment and systems; mechanical systems and
equipment; monitoring and secure systems; emergency
generators; hardware; computers; servers; data storage
devices; network connectivity equipment; racks;
cabinets; telecommunications cabling infrastructure;
raised floor systems; peripheral components or
systems; software; mechanical, electrical, or plumbing
systems; battery systems; cooling systems and towers;
temperature control systems; other cabling; and other
data center infrastructure equipment and systems
necessary to operate qualified tangible personal
property, including fixtures; and component parts of
any of the foregoing, including installation,
maintenance, repair, refurbishment, and replacement of
qualified tangible personal property to generate,
transform, transmit, distribute, or manage electricity

SB3019 Enrolled - 259 - LRB104 20255 HLH 33706 b
necessary to operate qualified tangible personal
property; and all other tangible personal property
that is essential to the operations of a computer data
center. The term "qualified tangible personal
property" also includes building materials physically
incorporated into the qualifying data center. To
document the exemption allowed under this Section, the
retailer must obtain from the purchaser a copy of the
certificate of eligibility issued by the Department of
Commerce and Economic Opportunity.
This item (44) is exempt from the provisions of
Section 2-70.
(45) Beginning January 1, 2020 and through December
31, 2020, sales of tangible personal property made by a
marketplace seller over a marketplace for which tax is due
under this Act but for which use tax has been collected and
remitted to the Department by a marketplace facilitator
under Section 2d of the Use Tax Act are exempt from tax
under this Act. A marketplace seller claiming this
exemption shall maintain books and records demonstrating
that the use tax on such sales has been collected and
remitted by a marketplace facilitator. Marketplace sellers
that have properly remitted tax under this Act on such
sales may file a claim for credit as provided in Section 6
of this Act. No claim is allowed, however, for such taxes
for which a credit or refund has been issued to the

SB3019 Enrolled - 260 - LRB104 20255 HLH 33706 b
marketplace facilitator under the Use Tax Act, or for
which the marketplace facilitator has filed a claim for
credit or refund under the Use Tax Act.
(46) Beginning July 1, 2022, breast pumps, breast pump
collection and storage supplies, and breast pump kits.
This item (46) is exempt from the provisions of Section
2-70. As used in this item (46):
"Breast pump" means an electrically controlled or
manually controlled pump device designed or marketed to be
used to express milk from a human breast during lactation,
including the pump device and any battery, AC adapter, or
other power supply unit that is used to power the pump
device and is packaged and sold with the pump device at the
time of sale.
"Breast pump collection and storage supplies" means
items of tangible personal property designed or marketed
to be used in conjunction with a breast pump to collect
milk expressed from a human breast and to store collected
milk until it is ready for consumption.
"Breast pump collection and storage supplies"
includes, but is not limited to: breast shields and breast
shield connectors; breast pump tubes and tubing adapters;
breast pump valves and membranes; backflow protectors and
backflow protector adaptors; bottles and bottle caps
specific to the operation of the breast pump; and breast
milk storage bags.

SB3019 Enrolled - 261 - LRB104 20255 HLH 33706 b
"Breast pump collection and storage supplies" does not
include: (1) bottles and bottle caps not specific to the
operation of the breast pump; (2) breast pump travel bags
and other similar carrying accessories, including ice
packs, labels, and other similar products; (3) breast pump
cleaning supplies; (4) nursing bras, bra pads, breast
shells, and other similar products; and (5) creams,
ointments, and other similar products that relieve
breastfeeding-related symptoms or conditions of the
breasts or nipples, unless sold as part of a breast pump
kit that is pre-packaged by the breast pump manufacturer
or distributor.
"Breast pump kit" means a kit that: (1) contains no
more than a breast pump, breast pump collection and
storage supplies, a rechargeable battery for operating the
breast pump, a breastmilk cooler, bottle stands, ice
packs, and a breast pump carrying case; and (2) is
pre-packaged as a breast pump kit by the breast pump
manufacturer or distributor.
(47) Tangible personal property sold by or on behalf
of the State Treasurer pursuant to the Revised Uniform
Unclaimed Property Act. This item (47) is exempt from the
provisions of Section 2-70.
(48) Beginning on January 1, 2024, tangible personal
property purchased by an active duty member of the armed
forces of the United States who presents valid military

SB3019 Enrolled - 262 - LRB104 20255 HLH 33706 b
identification and purchases the property using a form of
payment where the federal government is the payor. The
member of the armed forces must complete, at the point of
sale, a form prescribed by the Department of Revenue
documenting that the transaction is eligible for the
exemption under this paragraph. Retailers must keep the
form as documentation of the exemption in their records
for a period of not less than 6 years. "Armed forces of the
United States" means the United States Army, Navy, Air
Force, Space Force, Marine Corps, or Coast Guard. This
paragraph is exempt from the provisions of Section 2-70.
(49) Beginning July 1, 2024, home-delivered meals
provided to Medicare or Medicaid recipients when payment
is made by an intermediary, such as a Medicare
Administrative Contractor, a Managed Care Organization, or
a Medicare Advantage Organization, pursuant to a
government contract. This paragraph (49) is exempt from
the provisions of Section 2-70.
(50) Beginning on January 1, 2026, as further defined
in Section 2-10, food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic liquor taxable under Section 8-1 of the Liquor
Control Act of 1934 beverages, food consisting of or
infused with adult use cannabis, soft drinks, candy, and
food that has been prepared for immediate consumption).
This item (50) is exempt from the provisions of Section

SB3019 Enrolled - 263 - LRB104 20255 HLH 33706 b
2-70.
(51) Gross receipts from the lease of the following
tangible personal property:
(1) computer software transferred subject to a
license that meets the following requirements:
(A) it is evidenced by a written agreement
signed by the licensor and the customer;
(i) an electronic agreement in which the
customer accepts the license by means of an
electronic signature that is verifiable and
can be authenticated and is attached to or
made part of the license will comply with this
requirement;
(ii) a license agreement in which the
customer electronically accepts the terms by
clicking "I agree" does not comply with this
requirement;
(B) it restricts the customer's duplication
and use of the software;
(C) it prohibits the customer from licensing,
sublicensing, or transferring the software to a
third party (except to a related party) without
the permission and continued control of the
licensor;
(D) the licensor has a policy of providing
another copy at minimal or no charge if the

SB3019 Enrolled - 264 - LRB104 20255 HLH 33706 b
customer loses or damages the software, or of
permitting the licensee to make and keep an
archival copy, and such policy is either stated in
the license agreement, supported by the licensor's
books and records, or supported by a notarized
statement made under penalties of perjury by the
licensor; and
(E) the customer must destroy or return all
copies of the software to the licensor at the end
of the license period; this provision is deemed to
be met, in the case of a perpetual license,
without being set forth in the license agreement;
and
(2) property that is subject to a tax on lease
receipts imposed by a home rule unit of local
government if the ordinance imposing that tax was
adopted prior to January 1, 2023.
(Source: P.A. 103-9, Article 5, Section 5-20, eff. 6-7-23;
103-9, Article 15, Section 15-20, eff. 6-7-23; 103-154, eff.
6-30-23; 103-384, eff. 1-1-24; 103-592, eff. 1-1-25; 103-605,
eff. 7-1-24; 103-643, eff. 7-1-24; 103-746, eff. 1-1-25;
103-781, eff. 8-5-24; 103-995, eff. 8-9-24; 104-6, eff.
6-16-25; 104-417, eff. 8-15-25.)
(35 ILCS 120/2-10) from Ch. 120, par. 441-10
Sec. 2-10. Rate of tax. Unless otherwise provided in this

SB3019 Enrolled - 265 - LRB104 20255 HLH 33706 b
Section, the tax imposed by this Act is at the rate of 6.25% of
gross receipts from sales, which, on and after January 1,
2025, includes leases, of tangible personal property made in
the course of business.
Beginning on July 1, 2000 and through December 31, 2000,
with respect to motor fuel, as defined in Section 1.1 of the
Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
the Use Tax Act, the tax is imposed at the rate of 1.25%.
Beginning on August 6, 2010 through August 15, 2010, and
beginning again on August 5, 2022 through August 14, 2022,
with respect to sales tax holiday items as defined in Section
2-8 of this Act, the tax is imposed at the rate of 1.25%.
Within 14 days after July 1, 2000 (the effective date of
Public Act 91-872), each retailer of motor fuel and gasohol
shall cause the following notice to be posted in a prominently
visible place on each retail dispensing device that is used to
dispense motor fuel or gasohol in the State of Illinois: "As of
July 1, 2000, the State of Illinois has eliminated the State's
share of sales tax on motor fuel and gasohol through December
31, 2000. The price on this pump should reflect the
elimination of the tax." The notice shall be printed in bold
print on a sign that is no smaller than 4 inches by 8 inches.
The sign shall be clearly visible to customers. Any retailer
who fails to post or maintain a required sign through December
31, 2000 is guilty of a petty offense for which the fine shall
be $500 per day per each retail premises where a violation

SB3019 Enrolled - 266 - LRB104 20255 HLH 33706 b
occurs.
With respect to gasohol, as defined in the Use Tax Act, the
tax imposed by this Act applies to (i) 70% of the proceeds of
sales made on or after January 1, 1990, and before July 1,
2003, (ii) 80% of the proceeds of sales made on or after July
1, 2003 and on or before July 1, 2017, (iii) 100% of the
proceeds of sales made after July 1, 2017 and prior to January
1, 2024, (iv) 90% of the proceeds of sales made on or after
January 1, 2024 and on or before December 31, 2028, and (v)
100% of the proceeds of sales made after December 31, 2028. If,
at any time, however, the tax under this Act on sales of
gasohol, as defined in the Use Tax Act, is imposed at the rate
of 1.25%, then the tax imposed by this Act applies to 100% of
the proceeds of sales of gasohol made during that time.
With respect to mid-range ethanol blends, as defined in
Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
applies to (i) 80% of the proceeds of sales made on or after
January 1, 2024 and on or before December 31, 2028 and (ii)
100% of the proceeds of sales made after December 31, 2028. If,
at any time, however, the tax under this Act on sales of
mid-range ethanol blends is imposed at the rate of 1.25%, then
the tax imposed by this Act applies to 100% of the proceeds of
sales of mid-range ethanol blends made during that time.
With respect to majority blended ethanol fuel, as defined
in the Use Tax Act, the tax imposed by this Act does not apply
to the proceeds of sales made on or after July 1, 2003 and on

SB3019 Enrolled - 267 - LRB104 20255 HLH 33706 b
or before December 31, 2028 but applies to 100% of the proceeds
of sales made thereafter.
With respect to biodiesel blends, as defined in the Use
Tax Act, with no less than 1% and no more than 10% biodiesel,
the tax imposed by this Act applies to (i) 80% of the proceeds
of sales made on or after July 1, 2003 and on or before
December 31, 2018 and (ii) 100% of the proceeds of sales made
after December 31, 2018 and before January 1, 2024. On and
after January 1, 2024 and on or before December 31, 2030, the
taxation of biodiesel, renewable diesel, and biodiesel blends
shall be as provided in Section 3-5.1 of the Use Tax Act. If,
at any time, however, the tax under this Act on sales of
biodiesel blends, as defined in the Use Tax Act, with no less
than 1% and no more than 10% biodiesel is imposed at the rate
of 1.25%, then the tax imposed by this Act applies to 100% of
the proceeds of sales of biodiesel blends with no less than 1%
and no more than 10% biodiesel made during that time.
With respect to biodiesel, as defined in the Use Tax Act,
and biodiesel blends, as defined in the Use Tax Act, with more
than 10% but no more than 99% biodiesel, the tax imposed by
this Act does not apply to the proceeds of sales made on or
after July 1, 2003 and on or before December 31, 2023. On and
after January 1, 2024 and on or before December 31, 2030, the
taxation of biodiesel, renewable diesel, and biodiesel blends
shall be as provided in Section 3-5.1 of the Use Tax Act.
Until July 1, 2022 and from July 1, 2023 through December

SB3019 Enrolled - 268 - LRB104 20255 HLH 33706 b
31, 2025, with respect to food for human consumption that is to
be consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption), the tax is imposed at the rate of 1%.
Beginning July 1, 2022 and until July 1, 2023, with respect to
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
food consisting of or infused with adult use cannabis, soft
drinks, and food that has been prepared for immediate
consumption), the tax is imposed at the rate of 0%. On and
after January 1, 2026, food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic liquor taxable under Section 8-1 of the Liquor
Control Act of 1934 beverages, food consisting of or infused
with adult use cannabis, soft drinks, candy, and food that has
been prepared for immediate consumption) is exempt from the
tax imposed by this Act.
With respect to prescription and nonprescription
medicines, drugs, medical appliances, products classified as
Class III medical devices by the United States Food and Drug
Administration that are used for cancer treatment pursuant to
a prescription, as well as any accessories and components
related to those devices, modifications to a motor vehicle for
the purpose of rendering it usable by a person with a
disability, and insulin, blood sugar testing materials,

SB3019 Enrolled - 269 - LRB104 20255 HLH 33706 b
syringes, and needles used by human diabetics, the tax is
imposed at the rate of 1%. For the purposes of this Section,
until September 1, 2009: the term "soft drinks" means any
complete, finished, ready-to-use, non-alcoholic drink, whether
carbonated or not, including, but not limited to, soda water,
cola, fruit juice, vegetable juice, carbonated water, and all
other preparations commonly known as soft drinks of whatever
kind or description that are contained in any closed or sealed
bottle, can, carton, or container, regardless of size; but
"soft drinks" does not include coffee, tea, non-carbonated
water, infant formula, milk or milk products as defined in the
Grade A Pasteurized Milk and Milk Products Act, or drinks
containing 50% or more natural fruit or vegetable juice.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "soft drinks" means non-alcoholic
beverages that contain natural or artificial sweeteners. "Soft
drinks" does not include beverages that contain milk or milk
products, soy, rice or similar milk substitutes, or greater
than 50% of vegetable or fruit juice by volume.
Until August 1, 2009, and notwithstanding any other
provisions of this Act, "food for human consumption that is to
be consumed off the premises where it is sold" includes all
food sold through a vending machine, except soft drinks and
food products that are dispensed hot from a vending machine,
regardless of the location of the vending machine. Beginning
August 1, 2009, and notwithstanding any other provisions of

SB3019 Enrolled - 270 - LRB104 20255 HLH 33706 b
this Act, "food for human consumption that is to be consumed
off the premises where it is sold" includes all food sold
through a vending machine, except soft drinks, candy, and food
products that are dispensed hot from a vending machine,
regardless of the location of the vending machine.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "food for human consumption that
is to be consumed off the premises where it is sold" does not
include candy. For purposes of this Section, "candy" means a
preparation of sugar, honey, or other natural or artificial
sweeteners in combination with chocolate, fruits, nuts or
other ingredients or flavorings in the form of bars, drops, or
pieces. "Candy" does not include any preparation that contains
flour or requires refrigeration.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "nonprescription medicines and
drugs" does not include grooming and hygiene products. For
purposes of this Section, "grooming and hygiene products"
includes, but is not limited to, soaps and cleaning solutions,
shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
lotions and screens, unless those products are available by
prescription only, regardless of whether the products meet the
definition of "over-the-counter-drugs". For the purposes of
this paragraph, "over-the-counter-drug" means a drug for human
use that contains a label that identifies the product as a drug
as required by 21 CFR 201.66. The "over-the-counter-drug"

SB3019 Enrolled - 271 - LRB104 20255 HLH 33706 b
label includes:
(A) a "Drug Facts" panel; or
(B) a statement of the "active ingredient(s)" with a
list of those ingredients contained in the compound,
substance or preparation.
Beginning on January 1, 2014 (the effective date of Public
Act 98-122), "prescription and nonprescription medicines and
drugs" includes medical cannabis purchased from a registered
dispensing organization under the Compassionate Use of Medical
Cannabis Program Act.
As used in this Section, "adult use cannabis" means
cannabis subject to tax under the Cannabis Cultivation
Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
and does not include cannabis subject to tax under the
Compassionate Use of Medical Cannabis Program Act.
(Source: P.A. 103-9, eff. 6-7-23; 103-154, eff. 6-30-23;
103-592, eff. 1-1-25; 103-781, eff. 8-5-24; 104-417, eff.
8-15-25.)
(35 ILCS 120/2-13)
Sec. 2-13. Remote Retailer Amnesty Program.
(a) As used in this Section:
"Eligibility period" means the period from January 1, 2021
through June 30, 2026.
"Eligible transaction" means the sale of tangible personal
property by a remote retailer to an Illinois customer that

SB3019 Enrolled - 272 - LRB104 20255 HLH 33706 b
occurs during the eligibility period and that requires the
remote retailer to ship or otherwise deliver the tangible
personal property to an address in the State.
"Local retailers' occupation tax" means a retailers'
occupation tax imposed by a municipality, county, or other
unit of local government and administered by the Department.
"Program" means the Remote Retailer Amnesty Program
established under this Section.
"Remote retailer" means a remote retailer, as defined in
Section 1 of this Act, who has met a tax remittance threshold
under subsection (b) of Section 2 of this Act for all or part
of the eligibility period and who is participating in the
Program established under this Section.
"Remote retailer amnesty period" means the period from
August 1, 2026 through October 31, 2026, during which the
Department will accept returns and payment of State and local
retailers' occupation taxes at the simplified retailers'
occupation tax rate for eligible transactions that occur
during the eligibility period.
"Simplified retailers' occupation tax rate" means the
combined State and average local retailers' occupation tax
rate imposed on remote retailers participating in the Program.
The simplified retailers' occupation tax rate shall be (i) 9%
of the gross receipts from sales of tangible personal property
that are subject to the 6.25% State rate of tax imposed by
Section 2-10 of this Act or (ii) 1.75% of the gross receipts

SB3019 Enrolled - 273 - LRB104 20255 HLH 33706 b
from sales of (A) tangible personal property that is subject
to the 1% State rate of tax imposed by Section 2-10 of this Act
and (B) food for human consumption that is to be consumed off
the premises where it is sold (other than alcoholic liquor
taxable under Section 8-1 of the Liquor Control Act of 1934
beverages, food consisting of or infused with adult use
cannabis, soft drinks, and food that has been prepared for
immediate consumption), regardless of the applicable rate of
tax.
"Taxing jurisdiction" means a municipality, county, or
other unit of local government that imposes a local retailers'
occupation tax.
(b) The Department shall establish a Remote Retailer
Amnesty Program for remote retailers that owe State or local
retailers' occupation taxes on eligible transactions. The
Program shall operate during the remote retailer amnesty
period.
The Program shall allow a remote retailer who participates
in the Program to report and remit, at the simplified
retailers' occupation tax rate, State and local retailers'
occupation taxes that are due in connection with eligible
transactions. The payment shall be made by the remote retailer
during the remote retailer amnesty period and shall be in lieu
of reporting and remitting State and local retailers'
occupation taxes at the rate otherwise provided by law. The
payment of the tax at the simplified retailers' occupation tax

SB3019 Enrolled - 274 - LRB104 20255 HLH 33706 b
rate relieves the remote retailer of any additional State or
local retailers' occupation taxes with respect to the eligible
transaction.
The Program shall provide that, if the remote retailer
satisfies its State and local retailers' occupation tax
liability during the remote retailer amnesty period by
reporting and remitting payment to the Department at the
simplified retailers' occupation tax rate, the Department
shall abate and not seek to collect any interest or penalties
that may be applicable with respect to those eligible
transactions, and the Department shall not seek civil or
criminal prosecution of the remote retailer for the period of
time for which amnesty has been granted to the retailer. The
remote retailer must make full payment of all State and local
retailers' occupation taxes due with respect to the remote
retailer's eligible transactions, using the simplified
retailers' occupation tax rate, during the remote retailer
amnesty period for amnesty to be granted, unless the remote
retailer enters into an approved repayment plan with the
Department during the remote retailer amnesty period. In that
case, amnesty shall be granted upon successful completion of
the repayment plan as long as the taxpayer remains in
compliance with the terms of the payment plan throughout its
duration. Failure to pay all taxes due using the simplified
retailers' occupation tax rate for the eligible period, unless
tax has previously been remitted using the applicable State

SB3019 Enrolled - 275 - LRB104 20255 HLH 33706 b
and local retailers' occupation tax rates, shall invalidate
any amnesty granted under this Act, and all retailers'
occupation tax due for the eligible period shall be due at the
applicable State and local rate for the particular selling
location.
(c) Amnesty shall be granted only if all amnesty
conditions are satisfied by the taxpayer. The amnesty provided
by this Section shall be granted to any remote retailer who,
during the remote retailer amnesty period, files all returns
and remits all State and local retailers' occupation tax on
all eligible transactions using the simplified retailers'
occupation tax rate or otherwise applicable State and local
retailers' occupation tax rates due for all of the remote
retailer's eligible transactions. In addition, the following
requirements apply to the Program:
(1) to participate in the Program, the remote
retailers must be registered with the Department as set
out in Section 2a of this Act;
(2) returns filed under the Program shall be filed
electronically in the manner prescribed by the Department
in Section 3 of this Act and shall be filed only during the
remote retailer amnesty period;
(3) the remote retailer shall remit the tax at the
simplified retailers' occupation tax rate or, if the tax
was collected, in the amount of the tax collected,
whichever is greater; the required reporting for each

SB3019 Enrolled - 276 - LRB104 20255 HLH 33706 b
return period from the remote retailer shall include only
statewide totals of the retailers' occupation taxes
remitted at the simplified retailers' occupation tax rate
and shall not require information related to the location
of purchasers or amount of sales into a specific taxing
jurisdiction;
(4) amnesty is not available for any retailers'
occupation tax remitted to the Department prior to the
remote retailer amnesty program period by the remote
retailer;
(5) amnesty shall not be granted to taxpayers who are
a party to any criminal investigation or to any civil or
criminal litigation that is pending in any circuit court,
any appellate court, or the Supreme Court of this State
for nonpayment, delinquency, or fraud in relation to any
State tax imposed by any law of the State of Illinois;
(6) amnesty shall not be granted to taxpayers who
commit fraud or intentional misrepresentation of a
material fact in any document filed under the Remote
Retailer Amnesty Program; and
(7) amnesty is applicable only to retailers'
occupation taxes due from the remote retailer in his or
her capacity as a remote retailer and not to any other
taxes that may be owed by the remote retailer pursuant to
another tax Act.
(d) Except as otherwise provided in paragraph (3) of

SB3019 Enrolled - 277 - LRB104 20255 HLH 33706 b
subsection (c), no remote retailer shall be required to remit
the tax at a rate greater than 9% or 1.75%, as applicable,
regardless of the combined actual tax rates that may otherwise
be applicable. Additionally, no gross receipts for which State
and local retailers' occupation tax is remitted at the
simplified retailers' occupation tax rate shall be subject to
any additional retailers' occupation tax from any taxing
jurisdiction imposing a retailers' occupation tax with respect
to the sale of the property, regardless of the actual tax rate
that might have otherwise been applicable.
(e) The remote retailer shall remit the State and local
retailers' occupation tax at the simplified rate on all gross
receipts from sales of tangible personal property into
Illinois unless the remote retailer can produce a valid
exemption number or certificate, resale certificate, or direct
pay permit issued by the Department. The remote retailer shall
retain all exemption numbers or certificates, resale
certificates, or direct pay permits in its books and records,
or in such other manner as directed by the Department.
(f) Remote retailers shall maintain records of all
eligible transactions, including copies of invoices showing
the purchaser, the purchase amount, the taxes collected, and
the retailers' occupation tax remitted. Records must be kept
documenting all tangible personal property sold for which the
1.75% simplified retailers' occupation tax rate is used to
verify that the tangible personal property qualifies for the

SB3019 Enrolled - 278 - LRB104 20255 HLH 33706 b
1% State tax rate imposed under Section 2-10 of this Act. Those
records shall be made available for review and inspection upon
request by the Department. Remote retailers participating in
the Program remain subject to audit by the Department as
provided in this Act. Remote retailers participating in the
Program shall not be subject to audit or review by any unit of
local government under the Local Government Revenue Recapture
Act.
(g) The net revenue realized at the 9% rate under this
Section shall be deposited as follows: (i) notwithstanding the
provisions of Section 3 of the Retailer's Occupation Tax Act
to the contrary, the net revenue realized from the portion of
the rate in excess of 5% shall be deposited into the State and
Local Sales Tax Reform Fund and (ii) the net revenue realized
from the 5% portion of the rate shall be deposited as provided
in this Section 3 of the Retailers' Occupation Tax Act for the
5% portion of the 6.25% general rate imposed under this Act.
The net revenue realized at the 1.75% rate under this Section
shall be deposited into the State and Local Sales Tax Reform
Fund.
(h) The Department may adopt rules related to the
implementation, administration, and participation in the
Program. The Department shall have exclusive responsibility
for reviewing and accepting applications for participation and
for the administration, return processing, and review of the
eligibility of remote retailers participating in the Program.

SB3019 Enrolled - 279 - LRB104 20255 HLH 33706 b
(Source: P.A. 104-6, eff. 6-16-25.)
Section 70-45. The Tobacco Products Tax Act of 1995 is
amended by changing Section 10-45 as follows:
(35 ILCS 143/10-45)
Sec. 10-45. Incorporation by reference. All of the
provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h,
5i, 5j, 6, 6a, 6b, 6c, 8, 9, 10, 11, 11a, and 12 of the
Retailers' Occupation Tax Act, and all applicable provisions
of the Uniform Penalty and Interest Act that are not
inconsistent with this Act, apply to distributors of tobacco
products to the same extent as if those provisions were
included in this Act. References in the incorporated Sections
of the Retailers' Occupation Tax Act to retailers, to sellers,
or to persons engaged in the business of selling tangible
personal property mean distributors when used in this Act.
References in the incorporated Sections to sales of tangible
personal property mean sales of tobacco products when used in
this Act.
All of the provisions of Sections 7, 8, 8a, 16, 18a, 18b,
18c, 22, 23, 24, 26, 27, and 28a of the Cigarette Tax Act which
are not inconsistent with this Act shall apply, as far as
practicable, to the subject matter of this Act to the same
extent as if those provisions were included in this Act.
References in the incorporated Sections to sales of cigarettes

SB3019 Enrolled - 280 - LRB104 20255 HLH 33706 b
mean sales of little cigars in packages of 20 or 25 little
cigars.
(Source: P.A. 98-273, eff. 8-9-13.)
Section 70-50. The Hotel Operators' Occupation Tax Act is
amended by changing Section 3 as follows:
(35 ILCS 145/3) (from Ch. 120, par. 481b.33)
Sec. 3. Rate; exemptions.
(a) A tax is imposed upon hotel operators at the rate of 5%
of 94% of the gross rental receipts from engaging in business
as a hotel operator, excluding, however, from gross rental
receipts, the proceeds of renting, leasing or letting hotel
rooms to permanent residents of a hotel and proceeds from the
tax imposed under subsection (c) of Section 13 of the
Metropolitan Pier and Exposition Authority Act.
(b) There shall be imposed an additional tax upon hotel
operators at the rate of 1% of 94% of the gross rental receipts
received by the hotel operator from engaging in business as a
hotel operator, excluding, however, from gross rental
receipts, the proceeds of such renting, leasing or letting to
permanent residents of that hotel and proceeds from the tax
imposed under subsection (c) of Section 13 of the Metropolitan
Pier and Exposition Authority Act.
(b-5) Beginning on July 1, 2024 and through June 30, 2026,
if the renting, leasing, or letting of a hotel room is done

SB3019 Enrolled - 281 - LRB104 20255 HLH 33706 b
through a re-renter of hotel rooms, then, subject to the
provisions of Sections 3-2 and 3-3, the re-renter is the hotel
operator for the purposes of the taxes under subsections (a)
and (b). If the re-renter is headquartered outside of this
State and has no presence in this State other than its business
as a re-renter, conducted remotely, then, subject to the
provisions of Sections 3-2 and 3-3, such re-renter is the
hotel operator for the purposes of the taxes under subsections
(a) and (b) if it meets one of the following thresholds:
(1) the cumulative gross receipts from rentals in
Illinois by the re-renter of hotel rooms are $100,000 or
more; or
(2) the re-renter of hotel rooms cumulatively enters
into 200 or more separate transactions for rentals in
Illinois.
A re-renter of hotel rooms who is headquartered outside of
this State and has no presence in this State other than its
business as a re-renter, conducted remotely, shall determine
on a quarterly basis, ending on the last day of March, June,
September, and December, whether he or she meets the threshold
of either paragraph (1) or (2) of this subsection (b-5) for the
preceding 12-month period. If such re-renter of hotel rooms
meets the threshold of either paragraph (1) or (2) for a
12-month period, he or she is subject to tax under this Act and
is required to remit the tax imposed under this Act and file
returns for the 12-month period beginning on the first day of

SB3019 Enrolled - 282 - LRB104 20255 HLH 33706 b
the next month after he or she determines that he or she meets
the threshold of paragraph (1) or (2). At the end of that
12-month period, such re-renter of hotel rooms shall determine
whether he or she continued to meet the threshold of either
paragraph (1) or (2) during the preceding 12-month period. If
he or she met the threshold in either paragraph (1) or (2) for
the preceding 12-month period, he or she is a hotel operator in
this State and is required to remit the tax imposed under this
Act and file returns for the subsequent 12-month period. If,
at the end of a 12-month period during which such re-renter is
required to remit the tax imposed under this Act, the
re-renter determines that he or she did not meet the threshold
in either paragraph (1) or (2) during the preceding 12-month
period, he or she shall subsequently determine on a quarterly
basis, ending on the last day of March, June, September, and
December, whether he or she meets the threshold of either
paragraph (1) or (2) for the preceding 12-month period.
(b-40) Beginning on July 1, 2026, if the re-renter is
headquartered outside of this State and has no presence in
this State other than its business as a re-renter, conducted
remotely, then, subject to the provisions of Sections 3-2 and
3-3, that re-renter is the hotel operator for the purposes of
the taxes under subsections (a) and (b) if the cumulative
gross receipts from rentals in Illinois by the re-renter of
hotel rooms are $100,000 or more.
A re-renter of hotel rooms who is headquartered outside of

SB3019 Enrolled - 283 - LRB104 20255 HLH 33706 b
this State and has no presence in this State other than its
business as a re-renter, conducted remotely, shall determine
on a quarterly basis, ending on the last day of March, June,
September, and December, whether it meets the threshold of
this subsection for the preceding 12-month period. If the
re-renter of hotel rooms meets the threshold for a 12-month
period, it is subject to tax under this Act and is required to
remit the tax imposed under this Act and file returns for the
12-month period beginning on the first day of the next month
after it determines that it meets the threshold. At the end of
that 12-month period, the re-renter of hotel rooms shall
determine whether it continued to meet the threshold during
the preceding 12-month period. If the re-renter met the
threshold for the preceding 12-month period, it is a hotel
operator in this State and is required to remit the tax imposed
under this Act and file returns for the subsequent 12-month
period. If, at the end of a 12-month period during which such
re-renter is required to remit the tax imposed under this Act,
the re-renter determines that it did not meet the threshold
during the preceding 12-month period, it shall subsequently
determine on a quarterly basis, ending on the last day of
March, June, September, and December, whether it meets the
threshold for the preceding 12-month period.
(c) No funds received pursuant to this Act shall be used to
advertise for or otherwise promote new competition in the
hotel business.

SB3019 Enrolled - 284 - LRB104 20255 HLH 33706 b
(d) However, such tax is not imposed upon the privilege of
engaging in any business in Interstate Commerce or otherwise,
which business may not, under the Constitution and Statutes of
the United States, be made the subject of taxation by this
State. In addition, the tax is not imposed upon gross rental
receipts for which the hotel operator is prohibited from
obtaining reimbursement for the tax from the customer by
reason of a federal treaty.
(d-5) On and after July 1, 2017, the tax imposed by this
Act shall not apply to gross rental receipts received by an
entity that is organized and operated exclusively for
religious purposes and possesses an active Exemption
Identification Number issued by the Department pursuant to the
Retailers' Occupation Tax Act when acting as a hotel operator
renting, leasing, or letting rooms:
(1) in furtherance of the purposes for which it is
organized; or
(2) to entities that (i) are organized and operated
exclusively for religious purposes, (ii) possess an active
Exemption Identification Number issued by the Department
pursuant to the Retailers' Occupation Tax Act, and (iii)
rent the rooms in furtherance of the purposes for which
they are organized.
No gross rental receipts are exempt under paragraph (2) of
this subsection (d-5) unless the hotel operator obtains the
active Exemption Identification Number from the exclusively

SB3019 Enrolled - 285 - LRB104 20255 HLH 33706 b
religious entity to whom it is renting and maintains that
number in its books and records. Gross rental receipts from
all rentals other than those described in items (1) or (2) of
this subsection (d-5) are subject to the tax imposed by this
Act unless otherwise exempt under this Act.
This subsection (d-5) is exempt from the sunset provisions
of Section 3-5 of this Act.
(d-10) On and after July 1, 2023, the tax imposed by this
Act shall not apply to gross rental receipts received from the
renting, leasing, or letting of rooms to an entity that is
organized and operated exclusively by an organization
chartered by the United States Congress for the purpose of
providing disaster relief and that possesses an active
Exemption Identification Number issued by the Department
pursuant to the Retailers' Occupation Tax Act if the renting,
leasing, or letting of the rooms is in furtherance of the
purposes for which the exempt organization is organized. This
subsection (d-10) is exempt from the sunset provisions of
Section 3-5 of this Act.
(e) Persons subject to the tax imposed by this Act may
reimburse themselves for their tax liability under this Act by
separately stating such tax as an additional charge, which
charge may be stated in combination, in a single amount, with
any tax imposed pursuant to Sections 8-3-13 and 8-3-14 of the
Illinois Municipal Code, and Section 25.05-10 of "An Act to
revise the law in relation to counties".

SB3019 Enrolled - 286 - LRB104 20255 HLH 33706 b
(f) If any hotel operator collects an amount (however
designated) which purports to reimburse such operator for
hotel operators' occupation tax liability measured by receipts
which are not subject to hotel operators' occupation tax, or
if any hotel operator, in collecting an amount (however
designated) which purports to reimburse such operator for
hotel operators' occupation tax liability measured by receipts
which are subject to tax under this Act, collects more from the
guest or re-renter than the operators' hotel operators'
occupation tax liability in the transaction is, the guest or
re-renter, as applicable, shall have a legal right to claim a
refund of such amount from such operator. However, if such
amount is not refunded to the guest or re-renter, as
applicable, for any reason, the hotel operator is liable to
pay such amount to the Department.
(Source: P.A. 103-9, eff. 6-7-23; 103-592, eff. 7-1-24.)
Section 70-55. The Motor Fuel Tax Law is amended by
changing Section 21 as follows:
(35 ILCS 505/21) (from Ch. 120, par. 434a)
Sec. 21. The provisions of Sections 4, 5, 5a, 5b, 5c, 5d,
5e, 5f, 5g, 5h, 5i and 5j, 6, 6a, 6b, 6c (except to the extent
that the time limitations for requesting an administrative
hearing, the minimum notice requirement for hearings, and the
provisions regarding penalties and interest are inconsistent

SB3019 Enrolled - 287 - LRB104 20255 HLH 33706 b
with this Act), 8, 9, 10 and 12 of the Retailers' Occupation
Tax Act which are not inconsistent with this Act, and Section
3-7 of the Uniform Penalty and Interest Act, shall apply as far
as practicable to the subject matter of this Act to the same
extent as if those provisions were included in this Act.
(Source: P.A. 87-205; 88-480.)
(35 ILCS 610/Act rep.)
Section 70-60. The Messages Tax Act is repealed.
Section 70-65. The Innovation Development and Economy Act
is amended by changing Section 31 as follows:
(50 ILCS 470/31)
Sec. 31. STAR bond occupation taxes.
(a) If the corporate authorities of a political
subdivision have established a STAR bond district and have
elected to impose a tax by ordinance pursuant to subsection
(b) or (c) of this Section, each year after the date of the
adoption of the ordinance and until all STAR bond project
costs and all political subdivision obligations financing the
STAR bond project costs, if any, have been paid in accordance
with the STAR bond project plans, but in no event longer than
the maximum maturity date of the last of the STAR bonds issued
for projects in the STAR bond district, all amounts generated
by the retailers' occupation tax and service occupation tax

SB3019 Enrolled - 288 - LRB104 20255 HLH 33706 b
shall be collected and the tax shall be enforced by the
Department of Revenue in the same manner as all retailers'
occupation taxes and service occupation taxes imposed in the
political subdivision imposing the tax. The corporate
authorities of the political subdivision shall deposit the
proceeds of the taxes imposed under subsections (b) and (c)
into either (i) a special fund held by the corporate
authorities of the political subdivision called the STAR Bonds
Tax Allocation Fund for the purpose of paying STAR bond
project costs and obligations incurred in the payment of those
costs if such taxes are designated as pledged STAR revenues by
resolution or ordinance of the political subdivision or (ii)
the political subdivision's general corporate fund if such
taxes are not designated as pledged STAR revenues by
resolution or ordinance.
The tax imposed under this Section by a municipality may
be imposed only on the portion of a STAR bond district that is
within the boundaries of the municipality. For any part of a
STAR bond district that lies outside of the boundaries of that
municipality, the municipality in which the other part of the
STAR bond district lies (or the county, in cases where a
portion of the STAR bond district lies in the unincorporated
area of a county) is authorized to impose the tax under this
Section on that part of the STAR bond district.
(b) The corporate authorities of a political subdivision
that has established a STAR bond district under this Act may,

SB3019 Enrolled - 289 - LRB104 20255 HLH 33706 b
by ordinance or resolution, impose a STAR Bond Retailers'
Occupation Tax upon all persons engaged in the business of
selling tangible personal property, other than an item of
tangible personal property titled or registered with an agency
of this State's government, at retail in the STAR bond
district at a rate not to exceed 1% of the gross receipts from
the sales made in the course of that business, to be imposed
only in 0.25% increments. The tax may not be imposed on
tangible personal property taxed at the 1% rate under the
Retailers' Occupation Tax Act (or at the 0% rate imposed under
this amendatory Act of the 102nd General Assembly). Beginning
December 1, 2019 and through December 31, 2020, this tax is not
imposed on sales of aviation fuel unless the tax revenue is
expended for airport-related purposes. If the District does
not have an airport-related purpose to which aviation fuel tax
revenue is dedicated, then aviation fuel is excluded from the
tax. The municipality must comply with the certification
requirements for airport-related purposes under Section 2-22
of the Retailers' Occupation Tax Act. For purposes of this
Act, "airport-related purposes" has the meaning ascribed in
Section 6z-20.2 of the State Finance Act. Beginning January 1,
2021, this tax is not imposed on sales of aviation fuel for so
long as the revenue use requirements of 49 U.S.C. 47107(b) and
49 U.S.C. 47133 are binding on the District.
The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be

SB3019 Enrolled - 290 - LRB104 20255 HLH 33706 b
collected and enforced by the Department of Revenue. The
certificate of registration that is issued by the Department
to a retailer under the Retailers' Occupation Tax Act shall
permit the retailer to engage in a business that is taxable
under any ordinance or resolution enacted pursuant to this
subsection without registering separately with the Department
under such ordinance or resolution or under this subsection.
The Department of Revenue shall have full power to administer
and enforce this subsection, to collect all taxes and
penalties due under this subsection in the manner hereinafter
provided, and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty
under this subsection. In the administration of, and
compliance with, this subsection, the Department and persons
who are subject to this subsection shall have the same rights,
remedies, privileges, immunities, powers, and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions, and definitions of terms
and employ the same modes of procedure, as are prescribed in
Sections 1, 1a through 1o, 2 through 2-65 (in respect to all
provisions therein other than the State rate of tax), 2c
through 2h, 3 (except as to the disposition of taxes and
penalties collected, and except that the retailer's discount
is not allowed for taxes paid on aviation fuel that are subject
to the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k,

SB3019 Enrolled - 291 - LRB104 20255 HLH 33706 b
5l, 5m, 5n, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13, and 14 of
the Retailers' Occupation Tax Act and all provisions of the
Uniform Penalty and Interest Act, as fully as if those
provisions were set forth herein.
If a tax is imposed under this subsection (b), a tax shall
also be imposed under subsection (c) of this Section.
(c) If a tax has been imposed under subsection (b), a STAR
Bond Service Occupation Tax shall also be imposed upon all
persons engaged, in the STAR bond district, in the business of
making sales of service, who, as an incident to making those
sales of service, transfer tangible personal property within
the STAR bond district, either in the form of tangible
personal property or in the form of real estate as an incident
to a sale of service. The tax shall be imposed at the same rate
as the tax imposed in subsection (b) and shall not exceed 1% of
the selling price of tangible personal property so transferred
within the STAR bond district, to be imposed only in 0.25%
increments. The tax may not be imposed on tangible personal
property taxed at the 1% rate under the Service Occupation Tax
Act (or at the 0% rate imposed under this amendatory Act of the
102nd General Assembly). Beginning December 1, 2019 and
through December 31, 2020, this tax is not imposed on sales of
aviation fuel unless the tax revenue is expended for
airport-related purposes. If the District does not have an
airport-related purpose to which aviation fuel tax revenue is
dedicated, then aviation fuel is excluded from the tax. The

SB3019 Enrolled - 292 - LRB104 20255 HLH 33706 b
municipality must comply with the certification requirements
for airport-related purposes under Section 2-22 of the
Retailers' Occupation Tax Act. For purposes of this Act,
"airport-related purposes" has the meaning ascribed in Section
6z-20.2 of the State Finance Act. Beginning January 1, 2021,
this tax is not imposed on sales of aviation fuel for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the District.
The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the Department of Revenue. The
certificate of registration that is issued by the Department
to a retailer under the Retailers' Occupation Tax Act or under
the Service Occupation Tax Act shall permit the registrant to
engage in a business that is taxable under any ordinance or
resolution enacted pursuant to this subsection without
registering separately with the Department under that
ordinance or resolution or under this subsection. The
Department of Revenue shall have full power to administer and
enforce this subsection, to collect all taxes and penalties
due under this subsection, to dispose of taxes and penalties
so collected in the manner hereinafter provided, and to
determine all rights to credit memoranda arising on account of
the erroneous payment of tax or penalty under this subsection.
In the administration of, and compliance with this subsection,
the Department and persons who are subject to this subsection

SB3019 Enrolled - 293 - LRB104 20255 HLH 33706 b
shall have the same rights, remedies, privileges, immunities,
powers, and duties, and be subject to the same conditions,
restrictions, limitations, penalties, exclusions, exemptions,
and definitions of terms and employ the same modes of
procedure as are prescribed in Sections 2, 2a through 2d, 3
through 3-50 (in respect to all provisions therein other than
the State rate of tax), 4 (except that the reference to the
State shall be to the STAR bond district), 5, 7, 8 (except that
the jurisdiction to which the tax shall be a debt to the extent
indicated in that Section 8 shall be the political
subdivision), 9 (except as to the disposition of taxes and
penalties collected, and except that the returned merchandise
credit for this tax may not be taken against any State tax, and
except that the retailer's discount is not allowed for taxes
paid on aviation fuel that are subject to the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10,
11, 12 (except the reference therein to Section 2b of the
Retailers' Occupation Tax Act), 13 (except that any reference
to the State shall mean the political subdivision), the first
paragraph of Section 15, and Sections 16, 17, 18, 19 and 20 of
the Service Occupation Tax Act and all provisions of the
Uniform Penalty and Interest Act, as fully as if those
provisions were set forth herein.
If a tax is imposed under this subsection (c), a tax shall
also be imposed under subsection (b) of this Section.
(c-5) If, on January 1, 2025, a unit of local government

SB3019 Enrolled - 294 - LRB104 20255 HLH 33706 b
has in effect a tax under this Section, or if, after January 1,
2025, a unit of local government imposes a tax under this
Section, then that tax applies to leases of tangible personal
property in effect, entered into, or renewed on or after that
date in the same manner as the tax under this Section and in
accordance with the changes made by this amendatory Act of the
103rd General Assembly.
(d) Persons subject to any tax imposed under this Section
may reimburse themselves for their seller's tax liability
under this Section by separately stating the tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State taxes that sellers are required
to collect under the Use Tax Act, in accordance with such
bracket schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the STAR Bond Retailers' Occupation Tax Fund
or the Local Government Aviation Trust Fund, as appropriate.
Except as otherwise provided in this paragraph, the
Department shall immediately pay over to the State Treasurer,
ex officio, as trustee, all taxes, penalties, and interest
collected under this Section for deposit into the STAR Bond

SB3019 Enrolled - 295 - LRB104 20255 HLH 33706 b
Retailers' Occupation Tax Fund. Taxes and penalties collected
on aviation fuel sold on or after December 1, 2019, shall be
immediately paid over by the Department to the State
Treasurer, ex officio, as trustee, for deposit into the Local
Government Aviation Trust Fund. The Department shall only pay
moneys into the Local Government Aviation Trust Fund under
this Section for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
District. On or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named political
subdivisions from the STAR Bond Retailers' Occupation Tax
Fund, the political subdivisions to be those from which
retailers have paid taxes or penalties under this Section to
the Department during the second preceding calendar month. The
amount to be paid to each political subdivision shall be the
amount (not including credit memoranda and not including taxes
and penalties collected on aviation fuel sold on or after
December 1, 2019) collected under this Section during the
second preceding calendar month by the Department plus an
amount the Department determines is necessary to offset any
amounts that were erroneously paid to a different taxing body,
and not including an amount equal to the amount of refunds made
during the second preceding calendar month by the Department,
less 3% of that amount, which shall be deposited into the Tax
Compliance and Administration Fund and shall be used by the

SB3019 Enrolled - 296 - LRB104 20255 HLH 33706 b
Department, subject to appropriation, to cover the costs of
the Department in administering and enforcing the provisions
of this Section, on behalf of such political subdivision, and
not including any amount that the Department determines is
necessary to offset any amounts that were payable to a
different taxing body but were erroneously paid to the
political subdivision. Within 10 days after receipt by the
Comptroller of the disbursement certification to the political
subdivisions provided for in this Section to be given to the
Comptroller by the Department, the Comptroller shall cause the
orders to be drawn for the respective amounts in accordance
with the directions contained in the certification. The
proceeds of the tax paid to political subdivisions under this
Section shall be deposited into either (i) the STAR Bonds Tax
Allocation Fund by the political subdivision if the political
subdivision has designated them as pledged STAR revenues by
resolution or ordinance or (ii) the political subdivision's
general corporate fund if the political subdivision has not
designated them as pledged STAR revenues.
An ordinance or resolution imposing or discontinuing the
tax under this Section or effecting a change in the rate
thereof shall either (i) be adopted and a certified copy
thereof filed with the Department on or before the first day of
April, whereupon the Department, if all other requirements of
this Section are met, shall proceed to administer and enforce
this Section as of the first day of July next following the

SB3019 Enrolled - 297 - LRB104 20255 HLH 33706 b
adoption and filing; or (ii) be adopted and a certified copy
thereof filed with the Department on or before the first day of
October, whereupon, if all other requirements of this Section
are met, the Department shall proceed to administer and
enforce this Section as of the first day of January next
following the adoption and filing.
The Department of Revenue shall not administer or enforce
an ordinance imposing, discontinuing, or changing the rate of
the tax under this Section until the political subdivision
also provides, in the manner prescribed by the Department, the
boundaries of the STAR bond district and each address in the
STAR bond district in such a way that the Department can
determine by its address whether a business is located in the
STAR bond district. The political subdivision must provide
this boundary and address information to the Department on or
before April 1 for administration and enforcement of the tax
under this Section by the Department beginning on the
following July 1 and on or before October 1 for administration
and enforcement of the tax under this Section by the
Department beginning on the following January 1. The
Department of Revenue shall not administer or enforce any
change made to the boundaries of a STAR bond district or any
address change, addition, or deletion until the political
subdivision reports the boundary change or address change,
addition, or deletion to the Department in the manner
prescribed by the Department. The political subdivision must

SB3019 Enrolled - 298 - LRB104 20255 HLH 33706 b
provide this boundary change or address change, addition, or
deletion information to the Department on or before April 1
for administration and enforcement by the Department of the
change, addition, or deletion beginning on the following July
1 and on or before October 1 for administration and
enforcement by the Department of the change, addition, or
deletion beginning on the following January 1. The retailers
in the STAR bond district shall be responsible for charging
the tax imposed under this Section. If a retailer is
incorrectly included or excluded from the list of those
required to collect the tax under this Section, both the
Department of Revenue and the retailer shall be held harmless
if they reasonably relied on information provided by the
political subdivision.
A political subdivision that imposes the tax under this
Section must submit to the Department of Revenue any other
information as the Department may require that is necessary
for the administration and enforcement of the tax.
When certifying the amount of a monthly disbursement to a
political subdivision under this Section, the Department shall
increase or decrease the amount by an amount necessary to
offset any misallocation of previous disbursements. The offset
amount shall be the amount erroneously disbursed within the
previous 6 months from the time a misallocation is discovered.
Nothing in this Section shall be construed to authorize
the political subdivision to impose a tax upon the privilege

SB3019 Enrolled - 299 - LRB104 20255 HLH 33706 b
of engaging in any business which under the Constitution of
the United States may not be made the subject of taxation by
this State.
(e) When STAR bond project costs, including, without
limitation, all political subdivision obligations financing
STAR bond project costs, have been paid, any surplus funds
then remaining in the STAR Bonds Tax Allocation Fund shall be
distributed to the treasurer of the political subdivision for
deposit into the political subdivision's general corporate
fund. Upon payment of all STAR bond project costs and
retirement of obligations, but in no event later than the
maximum maturity date of the last of the STAR bonds issued in
the STAR bond district, the political subdivision shall adopt
an ordinance immediately rescinding the taxes imposed pursuant
to this Section and file a certified copy of the ordinance with
the Department in the form and manner as described in this
Section.
(Source: P.A. 102-700, eff. 4-19-22; 103-592, eff. 1-1-25.)
Section 70-70. The Counties Code is amended by changing
Sections 5-1006, 5-1006.5, 5-1006.7, 5-1006.8, 5-1006.9,
5-1008.5, and 5-12001 as follows:
(55 ILCS 5/5-1006) (from Ch. 34, par. 5-1006)
Sec. 5-1006. Home Rule County Retailers' Occupation Tax
Law. Any county that is a home rule unit may impose a tax upon

SB3019 Enrolled - 300 - LRB104 20255 HLH 33706 b
all persons engaged in the business of selling tangible
personal property, other than an item of tangible personal
property titled or registered with an agency of this State's
government, at retail in the county on the gross receipts from
such sales made in the course of their business. If imposed,
this tax shall only be imposed in 1/4% increments. On and after
September 1, 1991, this additional tax may not be imposed on
tangible personal property taxed at the 1% rate under the
Retailers' Occupation Tax Act (or at the 0% rate imposed under
this amendatory Act of the 102nd General Assembly). Beginning
December 1, 2019, this tax is not imposed on sales of aviation
fuel unless the tax revenue is expended for airport-related
purposes. If the county does not have an airport-related
purpose to which it dedicates aviation fuel tax revenue, then
aviation fuel is excluded from the tax. The county must comply
with the certification requirements for airport-related
purposes under Section 2-22 of the Retailers' Occupation Tax
Act. For purposes of this Section, "airport-related purposes"
has the meaning ascribed in Section 6z-20.2 of the State
Finance Act. This exclusion for aviation fuel only applies for
so long as the revenue use requirements of 49 U.S.C. 47107(b)
and 49 U.S.C. 47133 are binding on the county. The changes made
to this Section by this amendatory Act of the 101st General
Assembly are a denial and limitation of home rule powers and
functions under subsection (g) of Section 6 of Article VII of
the Illinois Constitution.

SB3019 Enrolled - 301 - LRB104 20255 HLH 33706 b
If, on January 1, 2025, a unit of local government has in
effect a tax under this Section, or if, after January 1, 2025,
a unit of local government imposes a tax under this Section,
then that tax applies to leases of tangible personal property
in effect, entered into, or renewed on or after that date in
the same manner as the tax under this Section and in accordance
with the changes made by this amendatory Act of the 103rd
General Assembly.
The tax imposed by a home rule county pursuant to this
Section and all civil penalties that may be assessed as an
incident thereof shall be collected and enforced by the State
Department of Revenue. The certificate of registration that is
issued by the Department to a retailer under the Retailers'
Occupation Tax Act shall permit the retailer to engage in a
business that is taxable under any ordinance or resolution
enacted pursuant to this Section without registering
separately with the Department under such ordinance or
resolution or under this Section. The Department shall have
full power to administer and enforce this Section; to collect
all taxes and penalties due hereunder; to dispose of taxes and
penalties so collected in the manner hereinafter provided; and
to determine all rights to credit memoranda arising on account
of the erroneous payment of tax or penalty hereunder. In the
administration of, and compliance with, this Section, the
Department and persons who are subject to this Section shall
have the same rights, remedies, privileges, immunities, powers

SB3019 Enrolled - 302 - LRB104 20255 HLH 33706 b
and duties, and be subject to the same conditions,
restrictions, limitations, penalties and definitions of terms,
and employ the same modes of procedure, as are prescribed in
Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through
2-65 (in respect to all provisions therein other than the
State rate of tax), 3 (except as to the disposition of taxes
and penalties collected, and except that the retailer's
discount is not allowed for taxes paid on aviation fuel that
are subject to the revenue use requirements of 49 U.S.C.
47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,
5g, 5h, 5i, 5j, 5k, 5l, 5m, 5n, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10,
11, 12 and 13 of the Retailers' Occupation Tax Act and Section
3-7 of the Uniform Penalty and Interest Act, as fully as if
those provisions were set forth herein.
No tax may be imposed by a home rule county pursuant to
this Section unless the county also imposes a tax at the same
rate pursuant to Section 5-1007.
Persons subject to any tax imposed pursuant to the
authority granted in this Section may reimburse themselves for
their seller's tax liability hereunder by separately stating
such tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax which sellers
are required to collect under the Use Tax Act, pursuant to such
bracket schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a

SB3019 Enrolled - 303 - LRB104 20255 HLH 33706 b
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the home rule county retailers' occupation
tax fund or the Local Government Aviation Trust Fund, as
appropriate.
Except as otherwise provided in this paragraph, the
Department shall forthwith pay over to the State Treasurer, ex
officio, as trustee, all taxes and penalties collected
hereunder for deposit into the Home Rule County Retailers'
Occupation Tax Fund. Taxes and penalties collected on aviation
fuel sold on or after December 1, 2019, shall be immediately
paid over by the Department to the State Treasurer, ex
officio, as trustee, for deposit into the Local Government
Aviation Trust Fund. The Department shall only pay moneys into
the Local Government Aviation Trust Fund under this Section
for so long as the revenue use requirements of 49 U.S.C.
47107(b) and 49 U.S.C. 47133 are binding on the county.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for

SB3019 Enrolled - 304 - LRB104 20255 HLH 33706 b
sales within a STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named counties, the
counties to be those from which retailers have paid taxes or
penalties hereunder to the Department during the second
preceding calendar month. The amount to be paid to each county
shall be the amount (not including credit memoranda and not
including taxes and penalties collected on aviation fuel sold
on or after December 1, 2019) collected hereunder during the
second preceding calendar month by the Department plus an
amount the Department determines is necessary to offset any
amounts that were erroneously paid to a different taxing body,
and not including an amount equal to the amount of refunds made
during the second preceding calendar month by the Department
on behalf of such county, and not including any amount which
the Department determines is necessary to offset any amounts
which were payable to a different taxing body but were
erroneously paid to the county, and not including any amounts
that are transferred to the STAR Bonds Revenue Fund, less 1.5%
of the remainder, which the Department shall transfer into the
Tax Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the counties, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund

SB3019 Enrolled - 305 - LRB104 20255 HLH 33706 b
under this Section. Within 10 days after receipt, by the
Comptroller, of the disbursement certification to the counties
and the Tax Compliance and Administration Fund provided for in
this Section to be given to the Comptroller by the Department,
the Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with the directions contained
in the certification.
In addition to the disbursement required by the preceding
paragraph, an allocation shall be made in March of each year to
each county that received more than $500,000 in disbursements
under the preceding paragraph in the preceding calendar year.
The allocation shall be in an amount equal to the average
monthly distribution made to each such county under the
preceding paragraph during the preceding calendar year
(excluding the 2 months of highest receipts). The distribution
made in March of each year subsequent to the year in which an
allocation was made pursuant to this paragraph and the
preceding paragraph shall be reduced by the amount allocated
and disbursed under this paragraph in the preceding calendar
year. The Department shall prepare and certify to the
Comptroller for disbursement the allocations made in
accordance with this paragraph.
For the purpose of determining the local governmental unit
whose tax is applicable, a retail sale by a producer of coal or
other mineral mined in Illinois is a sale at retail at the
place where the coal or other mineral mined in Illinois is

SB3019 Enrolled - 306 - LRB104 20255 HLH 33706 b
extracted from the earth. This paragraph does not apply to
coal or other mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the United States Constitution as a sale
in interstate or foreign commerce.
Nothing in this Section shall be construed to authorize a
county to impose a tax upon the privilege of engaging in any
business which under the Constitution of the United States may
not be made the subject of taxation by this State.
An ordinance or resolution imposing or discontinuing a tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of June, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of September next following such adoption and
filing. Beginning January 1, 1992, an ordinance or resolution
imposing or discontinuing the tax hereunder or effecting a
change in the rate thereof shall be adopted and a certified
copy thereof filed with the Department on or before the first
day of July, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of
October next following such adoption and filing. Beginning
January 1, 1993, an ordinance or resolution imposing or
discontinuing the tax hereunder or effecting a change in the
rate thereof shall be adopted and a certified copy thereof
filed with the Department on or before the first day of

SB3019 Enrolled - 307 - LRB104 20255 HLH 33706 b
October, whereupon the Department shall proceed to administer
and enforce this Section as of the first day of January next
following such adoption and filing. Beginning April 1, 1998,
an ordinance or resolution imposing or discontinuing the tax
hereunder or effecting a change in the rate thereof shall
either (i) be adopted and a certified copy thereof filed with
the Department on or before the first day of April, whereupon
the Department shall proceed to administer and enforce this
Section as of the first day of July next following the adoption
and filing; or (ii) be adopted and a certified copy thereof
filed with the Department on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce this Section as of the first day of January next
following the adoption and filing.
When certifying the amount of a monthly disbursement to a
county under this Section, the Department shall increase or
decrease such amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous
6 months from the time a misallocation is discovered.
This Section shall be known and may be cited as the Home
Rule County Retailers' Occupation Tax Law.
(Source: P.A. 102-700, eff. 4-19-22; 103-592, eff. 1-1-25.)
(55 ILCS 5/5-1006.5)
Sec. 5-1006.5. Special County Retailers' Occupation Tax

SB3019 Enrolled - 308 - LRB104 20255 HLH 33706 b
For Public Safety, Public Facilities, Mental Health, Substance
Abuse, or Transportation.
(a) The county board of any county may impose a tax upon
all persons engaged in the business of selling tangible
personal property, other than personal property titled or
registered with an agency of this State's government, at
retail in the county on the gross receipts from the sales made
in the course of business to provide revenue to be used
exclusively for public safety, public facility, mental health,
substance abuse, or transportation purposes in that county
(except as otherwise provided in this Section), if a
proposition for the tax has been submitted to the electors of
that county and approved by a majority of those voting on the
question. If imposed, this tax shall be imposed only in
one-quarter percent increments. By resolution, the county
board may order the proposition to be submitted at any
election. If the tax is imposed for transportation purposes
for expenditures for public highways or as authorized under
the Illinois Highway Code, the county board must publish
notice of the existence of its long-range highway
transportation plan as required or described in Section 5-301
of the Illinois Highway Code and must make the plan publicly
available prior to approval of the ordinance or resolution
imposing the tax. If the tax is imposed for transportation
purposes for expenditures for passenger rail transportation,
the county board must publish notice of the existence of its

SB3019 Enrolled - 309 - LRB104 20255 HLH 33706 b
long-range passenger rail transportation plan and must make
the plan publicly available prior to approval of the ordinance
or resolution imposing the tax.
If a tax is imposed for public facilities purposes, then
the name of the project may be included in the proposition at
the discretion of the county board as determined in the
enabling resolution. For example, the "XXX Nursing Home" or
the "YYY Museum".
The county clerk shall certify the question to the proper
election authority, who shall submit the proposition at an
election in accordance with the general election law.
(1) The proposition for public safety purposes shall
be in substantially the following form:
"To pay for public safety purposes, shall (name of
county) be authorized to impose an increase on its share
of local sales taxes by (insert rate)?"
As additional information on the ballot below the
question shall appear the following:
"This would mean that a consumer would pay an
additional (insert amount) in sales tax for every $100 of
tangible personal property bought at retail."
The county board may also opt to establish a sunset
provision at which time the additional sales tax would
cease being collected, if not terminated earlier by a vote
of the county board. If the county board votes to include a
sunset provision, the proposition for public safety

SB3019 Enrolled - 310 - LRB104 20255 HLH 33706 b
purposes shall be in substantially the following form:
"To pay for public safety purposes, shall (name of
county) be authorized to impose an increase on its share
of local sales taxes by (insert rate) for a period not to
exceed (insert number of years)?"
As additional information on the ballot below the
question shall appear the following:
"This would mean that a consumer would pay an
additional (insert amount) in sales tax for every $100 of
tangible personal property bought at retail. If imposed,
the additional tax would cease being collected at the end
of (insert number of years), if not terminated earlier by
a vote of the county board."
For the purposes of the paragraph, "public safety
purposes" means crime prevention, detention, fire
fighting, police, medical, ambulance, or other emergency
services.
Votes shall be recorded as "Yes" or "No".
Beginning on the January 1 or July 1, whichever is
first, that occurs not less than 30 days after May 31, 2015
(the effective date of Public Act 99-4), Adams County may
impose a public safety retailers' occupation tax and
service occupation tax at the rate of 0.25%, as provided
in the referendum approved by the voters on April 7, 2015,
notwithstanding the omission of the additional information
that is otherwise required to be printed on the ballot

SB3019 Enrolled - 311 - LRB104 20255 HLH 33706 b
below the question pursuant to this item (1).
(2) The proposition for transportation purposes shall
be in substantially the following form:
"To pay for improvements to roads and other
transportation purposes, shall (name of county) be
authorized to impose an increase on its share of local
sales taxes by (insert rate)?"
As additional information on the ballot below the
question shall appear the following:
"This would mean that a consumer would pay an
additional (insert amount) in sales tax for every $100 of
tangible personal property bought at retail."
The county board may also opt to establish a sunset
provision at which time the additional sales tax would
cease being collected, if not terminated earlier by a vote
of the county board. If the county board votes to include a
sunset provision, the proposition for transportation
purposes shall be in substantially the following form:
"To pay for road improvements and other transportation
purposes, shall (name of county) be authorized to impose
an increase on its share of local sales taxes by (insert
rate) for a period not to exceed (insert number of
years)?"
As additional information on the ballot below the
question shall appear the following:
"This would mean that a consumer would pay an

SB3019 Enrolled - 312 - LRB104 20255 HLH 33706 b
additional (insert amount) in sales tax for every $100 of
tangible personal property bought at retail. If imposed,
the additional tax would cease being collected at the end
of (insert number of years), if not terminated earlier by
a vote of the county board."
For the purposes of this paragraph, transportation
purposes means construction, maintenance, operation, and
improvement of public highways, any other purpose for
which a county may expend funds under the Illinois Highway
Code, and passenger rail transportation.
The votes shall be recorded as "Yes" or "No".
(3) The proposition for public facilities purposes
shall be in substantially the following form:
"To pay for public facilities purposes, shall (name of
county) be authorized to impose an increase on its share
of local sales taxes by (insert rate)?"
As additional information on the ballot below the
question shall appear the following:
"This would mean that a consumer would pay an
additional (insert amount) in sales tax for every $100 of
tangible personal property bought at retail."
The county board may also opt to establish a sunset
provision at which time the additional sales tax would
cease being collected, if not terminated earlier by a vote
of the county board. If the county board votes to include a
sunset provision, the proposition for public facilities

SB3019 Enrolled - 313 - LRB104 20255 HLH 33706 b
purposes shall be in substantially the following form:
"To pay for public facilities purposes, shall (name of
county) be authorized to impose an increase on its share
of local sales taxes by (insert rate) for a period not to
exceed (insert number of years)?"
As additional information on the ballot below the
question shall appear the following:
"This would mean that a consumer would pay an
additional (insert amount) in sales tax for every $100 of
tangible personal property bought at retail. If imposed,
the additional tax would cease being collected at the end
of (insert number of years), if not terminated earlier by
a vote of the county board."
For purposes of this Section, "public facilities
purposes" means the acquisition, development,
construction, reconstruction, rehabilitation,
improvement, financing, architectural planning, and
installation of capital facilities consisting of
buildings, structures, and durable equipment and for the
acquisition and improvement of real property and interest
in real property required, or expected to be required, in
connection with the public facilities, for use by the
county for the furnishing of governmental services to its
citizens, including, but not limited to, museums and
nursing homes.
The votes shall be recorded as "Yes" or "No".

SB3019 Enrolled - 314 - LRB104 20255 HLH 33706 b
(4) The proposition for mental health purposes shall
be in substantially the following form:
"To pay for mental health purposes, shall (name of
county) be authorized to impose an increase on its share
of local sales taxes by (insert rate)?"
As additional information on the ballot below the
question shall appear the following:
"This would mean that a consumer would pay an
additional (insert amount) in sales tax for every $100 of
tangible personal property bought at retail."
The county board may also opt to establish a sunset
provision at which time the additional sales tax would
cease being collected, if not terminated earlier by a vote
of the county board. If the county board votes to include a
sunset provision, the proposition for public facilities
purposes shall be in substantially the following form:
"To pay for mental health purposes, shall (name of
county) be authorized to impose an increase on its share
of local sales taxes by (insert rate) for a period not to
exceed (insert number of years)?"
As additional information on the ballot below the
question shall appear the following:
"This would mean that a consumer would pay an
additional (insert amount) in sales tax for every $100 of
tangible personal property bought at retail. If imposed,
the additional tax would cease being collected at the end

SB3019 Enrolled - 315 - LRB104 20255 HLH 33706 b
of (insert number of years), if not terminated earlier by
a vote of the county board."
The votes shall be recorded as "Yes" or "No".
(5) The proposition for substance abuse purposes shall
be in substantially the following form:
"To pay for substance abuse purposes, shall (name of
county) be authorized to impose an increase on its share
of local sales taxes by (insert rate)?"
As additional information on the ballot below the
question shall appear the following:
"This would mean that a consumer would pay an
additional (insert amount) in sales tax for every $100 of
tangible personal property bought at retail."
The county board may also opt to establish a sunset
provision at which time the additional sales tax would
cease being collected, if not terminated earlier by a vote
of the county board. If the county board votes to include a
sunset provision, the proposition for public facilities
purposes shall be in substantially the following form:
"To pay for substance abuse purposes, shall (name of
county) be authorized to impose an increase on its share
of local sales taxes by (insert rate) for a period not to
exceed (insert number of years)?"
As additional information on the ballot below the
question shall appear the following:
"This would mean that a consumer would pay an

SB3019 Enrolled - 316 - LRB104 20255 HLH 33706 b
additional (insert amount) in sales tax for every $100 of
tangible personal property bought at retail. If imposed,
the additional tax would cease being collected at the end
of (insert number of years), if not terminated earlier by
a vote of the county board."
The votes shall be recorded as "Yes" or "No".
If a majority of the electors voting on the proposition
vote in favor of it, the county may impose the tax. A county
may not submit more than one proposition authorized by this
Section to the electors at any one time.
This additional tax may not be imposed on tangible
personal property taxed at the 1% rate under the Retailers'
Occupation Tax Act (or at the 0% rate imposed under Public Act
102-700 this amendatory Act of the 102nd General Assembly).
Beginning December 1, 2019 and through December 31, 2020, this
tax is not imposed on sales of aviation fuel unless the tax
revenue is expended for airport-related purposes. If the
county does not have an airport-related purpose to which it
dedicates aviation fuel tax revenue, then aviation fuel is
excluded from the tax. The county must comply with the
certification requirements for airport-related purposes under
Section 2-22 of the Retailers' Occupation Tax Act. For
purposes of this Section, "airport-related purposes" has the
meaning ascribed in Section 6z-20.2 of the State Finance Act.
Beginning January 1, 2021, this tax is not imposed on sales of
aviation fuel for so long as the revenue use requirements of 49

SB3019 Enrolled - 317 - LRB104 20255 HLH 33706 b
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county.
The tax imposed by a county under this Section and all civil
penalties that may be assessed as an incident of the tax shall
be collected and enforced by the Illinois Department of
Revenue and deposited into a special fund created for that
purpose. The certificate of registration that is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act shall permit the retailer to engage in a business that is
taxable without registering separately with the Department
under an ordinance or resolution under this Section. The
Department has full power to administer and enforce this
Section, to collect all taxes and penalties due under this
Section, to dispose of taxes and penalties so collected in the
manner provided in this Section, and to determine all rights
to credit memoranda arising on account of the erroneous
payment of a tax or penalty under this Section. In the
administration of and compliance with this Section, the
Department and persons who are subject to this Section shall
(i) have the same rights, remedies, privileges, immunities,
powers, and duties, (ii) be subject to the same conditions,
restrictions, limitations, penalties, and definitions of
terms, and (iii) employ the same modes of procedure as are
prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m,
1n, 2 through 2-70 (in respect to all provisions contained in
those Sections other than the State rate of tax), 2a, 2b, 2c, 3
(except provisions relating to transaction returns and quarter

SB3019 Enrolled - 318 - LRB104 20255 HLH 33706 b
monthly payments, and except that the retailer's discount is
not allowed for taxes paid on aviation fuel that are deposited
into the Local Government Aviation Trust Fund), 4, 5, 5a, 5b,
5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 5m, 5n, 6, 6a, 6b, 6c,
6d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers'
Occupation Tax Act and Section 3-7 of the Uniform Penalty and
Interest Act as if those provisions were set forth in this
Section.
Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
sellers' tax liability by separately stating the tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State tax which sellers are required
to collect under the Use Tax Act, pursuant to such bracketed
schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the County Public Safety, Public Facilities,
Mental Health, Substance Abuse, or Transportation Retailers'
Occupation Tax Fund or the Local Government Aviation Trust
Fund, as appropriate.
(b) If a tax has been imposed under subsection (a), a

SB3019 Enrolled - 319 - LRB104 20255 HLH 33706 b
service occupation tax shall also be imposed upon all persons
engaged in the county in the business of making sales of
service, at the same rate of tax imposed under subsection (a),
on the selling price of all upon all persons engaged, in the
county, in the business of making sales of service, who, as an
incident to making those sales of service, transfer tangible
personal property transferred by the serviceman within the
county as an incident to a sale of service. This tax may not be
imposed on tangible personal property taxed at the 1% rate
under the Service Occupation Tax Act (or at the 0% rate imposed
under Public Act 102-700 this amendatory Act of the 102nd
General Assembly). Beginning December 1, 2019 and through
December 31, 2020, this tax is not imposed on sales of aviation
fuel unless the tax revenue is expended for airport-related
purposes. If the county does not have an airport-related
purpose to which it dedicates aviation fuel tax revenue, then
aviation fuel is excluded from the tax. The county must comply
with the certification requirements for airport-related
purposes under Section 2-22 of the Retailers' Occupation Tax
Act. For purposes of this Section, "airport-related purposes"
has the meaning ascribed in Section 6z-20.2 of the State
Finance Act. Beginning January 1, 2021, this tax is not
imposed on sales of aviation fuel for so long as the revenue
use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the county. The tax imposed under this subsection
and all civil penalties that may be assessed as an incident

SB3019 Enrolled - 320 - LRB104 20255 HLH 33706 b
thereof shall be collected and enforced by the Department of
Revenue. The Department has full power to administer and
enforce this subsection; to collect all taxes and penalties
due hereunder; to dispose of taxes and penalties so collected
in the manner hereinafter provided; and to determine all
rights to credit memoranda arising on account of the erroneous
payment of tax or penalty hereunder. In the administration of
and compliance with this subsection, the Department and
persons who are subject to this paragraph shall (i) have the
same rights, remedies, privileges, immunities, powers, and
duties, (ii) be subject to the same conditions, restrictions,
limitations, penalties, exclusions, exemptions, and
definitions of terms, and (iii) employ the same modes of
procedure as are prescribed in Sections 2 (except that the
reference to State in the definition of supplier maintaining a
place of business in this State shall mean the county), 2a, 2b,
2c, 3 through 3-50 (in respect to all provisions therein other
than the State rate of tax), 4 (except that the reference to
the State shall be to the county), 5, 7, 8 (except that the
jurisdiction to which the tax shall be a debt to the extent
indicated in that Section 8 shall be the county), 9 (except as
to the disposition of taxes and penalties collected, and
except that the retailer's discount is not allowed for taxes
paid on aviation fuel that are deposited into the Local
Government Aviation Trust Fund), 10, 11, 12 (except the
reference therein to Section 2b of the Retailers' Occupation

SB3019 Enrolled - 321 - LRB104 20255 HLH 33706 b
Tax Act), 13 (except that any reference to the State shall mean
the county), Section 15, 16, 17, 18, 19, and 20 of the Service
Occupation Tax Act, and Section 3-7 of the Uniform Penalty and
Interest Act, as fully as if those provisions were set forth
herein.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability by separately stating the tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State tax that servicemen are
authorized to collect under the Service Use Tax Act, in
accordance with such bracket schedules as the Department may
prescribe.
Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the County Public Safety, Public Facilities,
Mental Health, Substance Abuse, or Transportation Retailers'
Occupation Tax Fund or the Local Government Aviation Trust
Fund, as appropriate.
Nothing in this subsection shall be construed to authorize
the county to impose a tax upon the privilege of engaging in
any business which under the Constitution of the United States

SB3019 Enrolled - 322 - LRB104 20255 HLH 33706 b
may not be made the subject of taxation by the State.
(b-5) If, on January 1, 2025, a unit of local government
has in effect a tax under this Section, or if, after January 1,
2025, a unit of local government imposes a tax under this
Section, then that tax applies to leases of tangible personal
property in effect, entered into, or renewed on or after that
date in the same manner as the tax under this Section and in
accordance with the changes made by Public Act 103-592 this
amendatory Act of the 103rd General Assembly.
(c) Except as otherwise provided in this paragraph, the
Department shall immediately pay over to the State Treasurer,
ex officio, as trustee, all taxes and penalties collected
under this Section to be deposited into the County Public
Safety, Public Facilities, Mental Health, Substance Abuse, or
Transportation Retailers' Occupation Tax Fund, which shall be
an unappropriated trust fund held outside of the State
treasury. Taxes and penalties collected on aviation fuel sold
on or after December 1, 2019 and through December 31, 2020,
shall be immediately paid over by the Department to the State
Treasurer, ex officio, as trustee, for deposit into the Local
Government Aviation Trust Fund. The Department shall only pay
moneys into the Local Government Aviation Trust Fund under
this Act for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the

SB3019 Enrolled - 323 - LRB104 20255 HLH 33706 b
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for
sales within a STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to the counties from
which retailers have paid taxes or penalties to the Department
during the second preceding calendar month. The amount to be
paid to each county, and deposited by the county into its
special fund created for the purposes of this Section, shall
be the amount (not including credit memoranda and not
including taxes and penalties collected on aviation fuel sold
on or after December 1, 2019 and through December 31, 2020)
collected under this Section during the second preceding
calendar month by the Department plus an amount the Department
determines is necessary to offset any amounts that were
erroneously paid to a different taxing body, and not including
(i) an amount equal to the amount of refunds made during the
second preceding calendar month by the Department on behalf of
the county, (ii) any amount that the Department determines is
necessary to offset any amounts that were payable to a
different taxing body but were erroneously paid to the county,

SB3019 Enrolled - 324 - LRB104 20255 HLH 33706 b
(iii) any amounts that are transferred to the STAR Bonds
Revenue Fund, and (iv) 1.5% of the remainder, which shall be
transferred into the Tax Compliance and Administration Fund.
The Department, at the time of each monthly disbursement to
the counties, shall prepare and certify to the State
Comptroller the amount to be transferred into the Tax
Compliance and Administration Fund under this subsection.
Within 10 days after receipt by the Comptroller of the
disbursement certification to the counties and the Tax
Compliance and Administration Fund provided for in this
Section to be given to the Comptroller by the Department, the
Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with directions contained in
the certification.
In addition to the disbursement required by the preceding
paragraph, an allocation shall be made in March of each year to
each county that received more than $500,000 in disbursements
under the preceding paragraph in the preceding calendar year.
The allocation shall be in an amount equal to the average
monthly distribution made to each such county under the
preceding paragraph during the preceding calendar year
(excluding the 2 months of highest receipts). The distribution
made in March of each year subsequent to the year in which an
allocation was made pursuant to this paragraph and the
preceding paragraph shall be reduced by the amount allocated
and disbursed under this paragraph in the preceding calendar

SB3019 Enrolled - 325 - LRB104 20255 HLH 33706 b
year. The Department shall prepare and certify to the
Comptroller for disbursement the allocations made in
accordance with this paragraph.
(d) For the purpose of determining the local governmental
unit whose tax is applicable, a retail sale by a producer of
coal or another mineral mined in Illinois is a sale at retail
at the place where the coal or other mineral mined in Illinois
is extracted from the earth. This paragraph does not apply to
coal or another mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the United States Constitution as a sale
in interstate or foreign commerce.
(e) Nothing in this Section shall be construed to
authorize a county to impose a tax upon the privilege of
engaging in any business that under the Constitution of the
United States may not be made the subject of taxation by this
State.
(e-5) If a county imposes a tax under this Section, the
county board may, by ordinance, discontinue or lower the rate
of the tax. If the county board lowers the tax rate or
discontinues the tax, a referendum must be held in accordance
with subsection (a) of this Section in order to increase the
rate of the tax or to reimpose the discontinued tax.
(f) Beginning April 1, 1998 and through December 31, 2013,
the results of any election authorizing a proposition to
impose a tax under this Section or effecting a change in the

SB3019 Enrolled - 326 - LRB104 20255 HLH 33706 b
rate of tax, or any ordinance lowering the rate or
discontinuing the tax, shall be certified by the county clerk
and filed with the Illinois Department of Revenue either (i)
on or before the first day of April, whereupon the Department
shall proceed to administer and enforce the tax as of the first
day of July next following the filing; or (ii) on or before the
first day of October, whereupon the Department shall proceed
to administer and enforce the tax as of the first day of
January next following the filing.
Beginning January 1, 2014, the results of any election
authorizing a proposition to impose a tax under this Section
or effecting an increase in the rate of tax, along with the
ordinance adopted to impose the tax or increase the rate of the
tax, or any ordinance adopted to lower the rate or discontinue
the tax, shall be certified by the county clerk and filed with
the Illinois Department of Revenue either (i) on or before the
first day of May, whereupon the Department shall proceed to
administer and enforce the tax as of the first day of July next
following the adoption and filing; or (ii) on or before the
first day of October, whereupon the Department shall proceed
to administer and enforce the tax as of the first day of
January next following the adoption and filing.
(g) When certifying the amount of a monthly disbursement
to a county under this Section, the Department shall increase
or decrease the amounts by an amount necessary to offset any
miscalculation of previous disbursements. The offset amount

SB3019 Enrolled - 327 - LRB104 20255 HLH 33706 b
shall be the amount erroneously disbursed within the previous
6 months from the time a miscalculation is discovered.
(g-5) Every county authorized to levy a tax under this
Section shall, before it levies such tax, establish a 7-member
mental health board, which shall have the same powers and
duties and be constituted in the same manner as a community
mental health board established under the Community Mental
Health Act. Proceeds of the tax under this Section that are
earmarked for mental health or substance abuse purposes shall
be deposited into a special county occupation tax fund for
mental health and substance abuse. The 7-member mental health
board established under this subsection shall administer the
special county occupation tax fund for mental health and
substance abuse in the same manner as the community mental
health board administers the community mental health fund
under the Community Mental Health Act.
(h) This Section may be cited as the "Special County
Occupation Tax For Public Safety, Public Facilities, Mental
Health, Substance Abuse, or Transportation Law".
(i) For purposes of this Section, "public safety"
includes, but is not limited to, crime prevention, detention,
fire fighting, police, medical, ambulance, or other emergency
services. The county may share tax proceeds received under
this Section for public safety purposes, including proceeds
received before August 4, 2009 (the effective date of Public
Act 96-124), with any fire protection district located in the

SB3019 Enrolled - 328 - LRB104 20255 HLH 33706 b
county. For the purposes of this Section, "transportation"
includes, but is not limited to, the construction,
maintenance, operation, and improvement of public highways,
any other purpose for which a county may expend funds under the
Illinois Highway Code, and passenger rail transportation. For
the purposes of this Section, "public facilities purposes"
includes, but is not limited to, the acquisition, development,
construction, reconstruction, rehabilitation, improvement,
financing, architectural planning, and installation of capital
facilities consisting of buildings, structures, and durable
equipment and for the acquisition and improvement of real
property and interest in real property required, or expected
to be required, in connection with the public facilities, for
use by the county for the furnishing of governmental services
to its citizens, including, but not limited to, museums and
nursing homes.
(j) The Department may promulgate rules to implement
Public Act 95-1002 only to the extent necessary to apply the
existing rules for the Special County Retailers' Occupation
Tax for Public Safety to this new purpose for public
facilities.
(Source: P.A. 102-379, eff. 1-1-22; 102-700, eff. 4-19-22;
103-592, eff. 1-1-25; revised 7-7-25.)
(55 ILCS 5/5-1006.7)
Sec. 5-1006.7. School facility and resources occupation

SB3019 Enrolled - 329 - LRB104 20255 HLH 33706 b
taxes.
(a) In any county, a tax shall be imposed upon all persons
engaged in the business of selling tangible personal property,
other than personal property titled or registered with an
agency of this State's government, at retail in the county on
the gross receipts from the sales made in the course of
business to provide revenue to be used exclusively for (i)
school facility purposes (except as otherwise provided in this
Section), (ii) school resource officers and mental health
professionals, or (iii) school facility purposes, school
resource officers, and mental health professionals if a
proposition for the tax has been submitted to the electors of
that county and approved by a majority of those voting on the
question as provided in subsection (c). The tax under this
Section shall be imposed only in one-quarter percent
increments and may not exceed 1%.
This additional tax may not be imposed on tangible
personal property taxed at the 1% rate under the Retailers'
Occupation Tax Act (or at the 0% rate imposed under Public Act
102-700). Beginning December 1, 2019 and through December 31,
2020, this tax is not imposed on sales of aviation fuel unless
the tax revenue is expended for airport-related purposes. If
the county does not have an airport-related purpose to which
it dedicates aviation fuel tax revenue, then aviation fuel is
excluded from the tax. The county must comply with the
certification requirements for airport-related purposes under

SB3019 Enrolled - 330 - LRB104 20255 HLH 33706 b
Section 2-22 of the Retailers' Occupation Tax Act. For
purposes of this Section, "airport-related purposes" has the
meaning ascribed in Section 6z-20.2 of the State Finance Act.
Beginning January 1, 2021, this tax is not imposed on sales of
aviation fuel for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county.
The Department of Revenue has full power to administer and
enforce this subsection, to collect all taxes and penalties
due under this subsection, to dispose of taxes and penalties
so collected in the manner provided in this subsection, and to
determine all rights to credit memoranda arising on account of
the erroneous payment of a tax or penalty under this
subsection. The Department shall deposit all taxes and
penalties collected under this subsection into a special fund
created for that purpose.
In the administration of and compliance with this
subsection, the Department and persons who are subject to this
subsection (i) have the same rights, remedies, privileges,
immunities, powers, and duties, (ii) are subject to the same
conditions, restrictions, limitations, penalties, and
definitions of terms, and (iii) shall employ the same modes of
procedure as are set forth in Sections 1 through 1o, 2 through
2-70 (in respect to all provisions contained in those Sections
other than the State rate of tax), 2a through 2h, 3 (except as
to the disposition of taxes and penalties collected, and
except that the retailer's discount is not allowed for taxes

SB3019 Enrolled - 331 - LRB104 20255 HLH 33706 b
paid on aviation fuel that are subject to the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5,
5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 5m, 5n, 6, 6a,
6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers'
Occupation Tax Act and all provisions of the Uniform Penalty
and Interest Act as if those provisions were set forth in this
subsection.
The certificate of registration that is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act permits the retailer to engage in a business that is
taxable without registering separately with the Department
under an ordinance or resolution under this subsection.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
seller's tax liability by separately stating that tax as an
additional charge, which may be stated in combination, in a
single amount, with State tax that sellers are required to
collect under the Use Tax Act, pursuant to any bracketed
schedules set forth by the Department.
(b) If a tax has been imposed under subsection (a), then a
service occupation tax must also be imposed upon all persons
engaged in the county in the business of making sales of
service, at the same rate of tax imposed under subsection (a),
on the selling price of all upon all persons engaged, in the
county, in the business of making sales of service, who, as an
incident to making those sales of service, transfer tangible

SB3019 Enrolled - 332 - LRB104 20255 HLH 33706 b
personal property transferred by the serviceman within the
county as an incident to a sale of service.
This tax may not be imposed on tangible personal property
taxed at the 1% rate under the Service Occupation Tax Act (or
at the 0% rate imposed under Public Act 102-700). Beginning
December 1, 2019 and through December 31, 2020, this tax is not
imposed on sales of aviation fuel unless the tax revenue is
expended for airport-related purposes. If the county does not
have an airport-related purpose to which it dedicates aviation
fuel tax revenue, then aviation fuel is excluded from the tax.
The county must comply with the certification requirements for
airport-related purposes under Section 2-22 of the Retailers'
Occupation Tax Act. For purposes of this Section,
"airport-related purposes" has the meaning ascribed in Section
6z-20.2 of the State Finance Act. Beginning January 1, 2021,
this tax is not imposed on sales of aviation fuel for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the county.
The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the Department and deposited into a
special fund created for that purpose. The Department has full
power to administer and enforce this subsection, to collect
all taxes and penalties due under this subsection, to dispose
of taxes and penalties so collected in the manner provided in
this subsection, and to determine all rights to credit

SB3019 Enrolled - 333 - LRB104 20255 HLH 33706 b
memoranda arising on account of the erroneous payment of a tax
or penalty under this subsection.
In the administration of and compliance with this
subsection, the Department and persons who are subject to this
subsection shall (i) have the same rights, remedies,
privileges, immunities, powers and duties, (ii) be subject to
the same conditions, restrictions, limitations, penalties and
definition of terms, and (iii) employ the same modes of
procedure as are set forth in Sections 2 (except that that
reference to State in the definition of supplier maintaining a
place of business in this State means the county), 2a through
2d, 3 through 3-50 (in respect to all provisions contained in
those Sections other than the State rate of tax), 4 (except
that the reference to the State shall be to the county), 5, 7,
8 (except that the jurisdiction to which the tax is a debt to
the extent indicated in that Section 8 is the county), 9
(except as to the disposition of taxes and penalties
collected, and except that the retailer's discount is not
allowed for taxes paid on aviation fuel that are subject to the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133), 10, 11, 12 (except the reference therein to Section 2b
of the Retailers' Occupation Tax Act), 13 (except that any
reference to the State means the county), 15, 16, 17, 18, 19,
and 20 of the Service Occupation Tax Act and all provisions of
the Uniform Penalty and Interest Act, as fully as if those
provisions were set forth herein.

SB3019 Enrolled - 334 - LRB104 20255 HLH 33706 b
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability by separately stating the tax as an
additional charge, which may be stated in combination, in a
single amount, with State tax that servicemen are authorized
to collect under the Service Use Tax Act, pursuant to any
bracketed schedules set forth by the Department.
(b-5) If, on January 1, 2025, a unit of local government
has in effect a tax under this Section, or if, after January 1,
2025, a unit of local government imposes a tax under this
Section, then that tax applies to leases of tangible personal
property in effect, entered into, or renewed on or after that
date in the same manner as the tax under this Section and in
accordance with the changes made by this amendatory Act of the
103rd General Assembly.
(c) The tax under this Section may not be imposed until the
question of imposing the tax has been submitted to the
electors of the county at a regular election and approved by a
majority of the electors voting on the question. For all
regular elections held prior to August 23, 2011 (the effective
date of Public Act 97-542), upon a resolution by the county
board or a resolution by school district boards that represent
at least 51% of the student enrollment within the county, the
county board must certify the question to the proper election
authority in accordance with the Election Code.
For all regular elections held prior to August 23, 2011

SB3019 Enrolled - 335 - LRB104 20255 HLH 33706 b
(the effective date of Public Act 97-542), the election
authority must submit the question in substantially the
following form:
Shall (name of county) be authorized to impose a
retailers' occupation tax and a service occupation tax
(commonly referred to as a "sales tax") at a rate of
(insert rate) to be used exclusively for school facility
purposes?
The election authority must record the votes as "Yes" or
"No".
If a majority of the electors voting on the question vote
in the affirmative, then the county may, thereafter, impose
the tax.
For all regular elections held on or after August 23, 2011
(the effective date of Public Act 97-542), the regional
superintendent of schools for the county must, upon receipt of
a resolution or resolutions of school district boards that
represent more than 50% of the student enrollment within the
county, certify the question to the proper election authority
for submission to the electors of the county at the next
regular election at which the question lawfully may be
submitted to the electors, all in accordance with the Election
Code.
For all regular elections held on or after August 23, 2011
(the effective date of Public Act 97-542) and before August
23, 2019 (the effective date of Public Act 101-455), the

SB3019 Enrolled - 336 - LRB104 20255 HLH 33706 b
election authority must submit the question in substantially
the following form:
Shall a retailers' occupation tax and a service
occupation tax (commonly referred to as a "sales tax") be
imposed in (name of county) at a rate of (insert rate) to
be used exclusively for school facility purposes?
The election authority must record the votes as "Yes" or
"No".
If a majority of the electors voting on the question vote
in the affirmative, then the tax shall be imposed at the rate
set forth in the question.
For all regular elections held on or after August 23, 2019
(the effective date of Public Act 101-455), the election
authority must submit the question as follows:
(1) If the referendum is to expand the use of revenues
from a currently imposed tax exclusively for school
facility purposes to include school resource officers and
mental health professionals, the question shall be in
substantially the following form:
In addition to school facility purposes, shall
(name of county) school districts be authorized to use
revenues from the tax commonly referred to as the
school facility sales tax that is currently imposed in
(name of county) at a rate of (insert rate) for school
resource officers and mental health professionals?
(2) If the referendum is to increase the rate of a tax

SB3019 Enrolled - 337 - LRB104 20255 HLH 33706 b
currently imposed exclusively for school facility purposes
at less than 1% and dedicate the additional revenues for
school resource officers and mental health professionals,
the question shall be in substantially the following form:
Shall the tax commonly referred to as the school
facility sales tax that is currently imposed in (name
of county) at the rate of (insert rate) be increased to
a rate of (insert rate) with the additional revenues
used exclusively for school resource officers and
mental health professionals?
(3) If the referendum is to impose a tax in a county
that has not previously imposed a tax under this Section
exclusively for school facility purposes, the question
shall be in substantially the following form:
Shall a retailers' occupation tax and a service
occupation tax (commonly referred to as a sales tax)
be imposed in (name of county) at a rate of (insert
rate) to be used exclusively for school facility
purposes?
(4) If the referendum is to impose a tax in a county
that has not previously imposed a tax under this Section
exclusively for school resource officers and mental health
professionals, the question shall be in substantially the
following form:
Shall a retailers' occupation tax and a service
occupation tax (commonly referred to as a sales tax)

SB3019 Enrolled - 338 - LRB104 20255 HLH 33706 b
be imposed in (name of county) at a rate of (insert
rate) to be used exclusively for school resource
officers and mental health professionals?
(5) If the referendum is to impose a tax in a county
that has not previously imposed a tax under this Section
exclusively for school facility purposes, school resource
officers, and mental health professionals, the question
shall be in substantially the following form:
Shall a retailers' occupation tax and a service
occupation tax (commonly referred to as a sales tax)
be imposed in (name of county) at a rate of (insert
rate) to be used exclusively for school facility
purposes, school resource officers, and mental health
professionals?
The election authority must record the votes as "Yes" or
"No".
If a majority of the electors voting on the question vote
in the affirmative, then the tax shall be imposed at the rate
set forth in the question.
For the purposes of this subsection (c), "enrollment"
means the head count of the students residing in the county on
the last school day of September of each year, which must be
reported on the Illinois State Board of Education Public
School Fall Enrollment/Housing Report.
(d) Except as otherwise provided, the Department shall
immediately pay over to the State Treasurer, ex officio, as

SB3019 Enrolled - 339 - LRB104 20255 HLH 33706 b
trustee, all taxes and penalties collected under this Section
to be deposited into the School Facility Occupation Tax Fund,
which shall be an unappropriated trust fund held outside the
State treasury. Taxes and penalties collected on aviation fuel
sold on or after December 1, 2019 and through December 31,
2020, shall be immediately paid over by the Department to the
State Treasurer, ex officio, as trustee, for deposit into the
Local Government Aviation Trust Fund. The Department shall
only pay moneys into the Local Government Aviation Trust Fund
under this Section for so long as the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
county.
On or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to the regional
superintendents of schools in counties from which retailers or
servicemen have paid taxes or penalties to the Department
during the second preceding calendar month. The amount to be
paid to each regional superintendent of schools and disbursed
to him or her in accordance with Section 3-14.31 of the School
Code, is equal to the amount (not including credit memoranda
and not including taxes and penalties collected on aviation
fuel sold on or after December 1, 2019 and through December 31,
2020) collected from the county under this Section during the
second preceding calendar month by the Department, (i) less 2%
of that amount (except the amount collected on aviation fuel

SB3019 Enrolled - 340 - LRB104 20255 HLH 33706 b
sold on or after December 1, 2019 and through December 31,
2020), of which 50% shall be deposited into the Tax Compliance
and Administration Fund and shall be used by the Department,
subject to appropriation, to cover the costs of the Department
in administering and enforcing the provisions of this Section,
on behalf of the county, and 50% shall be distributed to the
regional superintendent of schools to cover the costs in
administering and enforcing the provisions of this Section;
(ii) plus an amount that the Department determines is
necessary to offset any amounts that were erroneously paid to
a different taxing body; (iii) less an amount equal to the
amount of refunds made during the second preceding calendar
month by the Department on behalf of the county; and (iv) less
any amount that the Department determines is necessary to
offset any amounts that were payable to a different taxing
body but were erroneously paid to the county. When certifying
the amount of a monthly disbursement to a regional
superintendent of schools under this Section, the Department
shall increase or decrease the amounts by an amount necessary
to offset any miscalculation of previous disbursements within
the previous 6 months from the time a miscalculation is
discovered.
Within 10 days after receipt by the Comptroller from the
Department of the disbursement certification to the regional
superintendents of the schools provided for in this Section,
the Comptroller shall cause the orders to be drawn for the

SB3019 Enrolled - 341 - LRB104 20255 HLH 33706 b
respective amounts in accordance with directions contained in
the certification.
If the Department determines that a refund should be made
under this Section to a claimant instead of issuing a credit
memorandum, then the Department shall notify the Comptroller,
who shall cause the order to be drawn for the amount specified
and to the person named in the notification from the
Department. The refund shall be paid by the Treasurer out of
the School Facility Occupation Tax Fund or the Local
Government Aviation Trust Fund, as appropriate.
(e) For the purposes of determining the local governmental
unit whose tax is applicable, a retail sale by a producer of
coal or another mineral mined in Illinois is a sale at retail
at the place where the coal or other mineral mined in Illinois
is extracted from the earth. This subsection does not apply to
coal or another mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the United States Constitution as a sale
in interstate or foreign commerce.
(f) Nothing in this Section may be construed to authorize
a tax to be imposed upon the privilege of engaging in any
business that under the Constitution of the United States may
not be made the subject of taxation by this State.
(g) If a county board imposes a tax under this Section
pursuant to a referendum held before August 23, 2011 (the
effective date of Public Act 97-542) at a rate below the rate

SB3019 Enrolled - 342 - LRB104 20255 HLH 33706 b
set forth in the question approved by a majority of electors of
that county voting on the question as provided in subsection
(c), then the county board may, by ordinance, increase the
rate of the tax up to the rate set forth in the question
approved by a majority of electors of that county voting on the
question as provided in subsection (c). If a county board
imposes a tax under this Section pursuant to a referendum held
before August 23, 2011 (the effective date of Public Act
97-542), then the board may, by ordinance, discontinue or
reduce the rate of the tax. If a tax is imposed under this
Section pursuant to a referendum held on or after August 23,
2011 (the effective date of Public Act 97-542) and before
August 23, 2019 (the effective date of Public Act 101-455),
then the county board may reduce or discontinue the tax, but
only in accordance with subsection (h-5) of this Section. If a
tax is imposed under this Section pursuant to a referendum
held on or after August 23, 2019 (the effective date of Public
Act 101-455), then the county board may reduce or discontinue
the tax, but only in accordance with subsection (h-10). If,
however, a school board issues bonds that are secured by the
proceeds of the tax under this Section, then the county board
may not reduce the tax rate or discontinue the tax if that rate
reduction or discontinuance would adversely affect the school
board's ability to pay the principal and interest on those
bonds as they become due or necessitate the extension of
additional property taxes to pay the principal and interest on

SB3019 Enrolled - 343 - LRB104 20255 HLH 33706 b
those bonds. If the county board reduces the tax rate or
discontinues the tax, then a referendum must be held in
accordance with subsection (c) of this Section in order to
increase the rate of the tax or to reimpose the discontinued
tax.
Until January 1, 2014, the results of any election that
imposes, reduces, or discontinues a tax under this Section
must be certified by the election authority, and any ordinance
that increases or lowers the rate or discontinues the tax must
be certified by the county clerk and, in each case, filed with
the Illinois Department of Revenue either (i) on or before the
first day of April, whereupon the Department shall proceed to
administer and enforce the tax or change in the rate as of the
first day of July next following the filing; or (ii) on or
before the first day of October, whereupon the Department
shall proceed to administer and enforce the tax or change in
the rate as of the first day of January next following the
filing.
Beginning January 1, 2014, the results of any election
that imposes, reduces, or discontinues a tax under this
Section must be certified by the election authority, and any
ordinance that increases or lowers the rate or discontinues
the tax must be certified by the county clerk and, in each
case, filed with the Illinois Department of Revenue either (i)
on or before the first day of May, whereupon the Department
shall proceed to administer and enforce the tax or change in

SB3019 Enrolled - 344 - LRB104 20255 HLH 33706 b
the rate as of the first day of July next following the filing;
or (ii) on or before the first day of October, whereupon the
Department shall proceed to administer and enforce the tax or
change in the rate as of the first day of January next
following the filing.
(h) For purposes of this Section, "school facility
purposes" means (i) the acquisition, development,
construction, reconstruction, rehabilitation, improvement,
financing, architectural planning, and installation of capital
facilities consisting of buildings, structures, and durable
equipment and for the acquisition and improvement of real
property and interest in real property required, or expected
to be required, in connection with the capital facilities and
(ii) the payment of bonds or other obligations heretofore or
hereafter issued, including bonds or other obligations
heretofore or hereafter issued to refund or to continue to
refund bonds or other obligations issued, for school facility
purposes, provided that the taxes levied to pay those bonds
are abated by the amount of the taxes imposed under this
Section that are used to pay those bonds. "School facility
purposes" also includes fire prevention, safety, energy
conservation, accessibility, school security, and specified
repair purposes set forth under Section 17-2.11 of the School
Code.
(h-5) A county board in a county where a tax has been
imposed under this Section pursuant to a referendum held on or

SB3019 Enrolled - 345 - LRB104 20255 HLH 33706 b
after August 23, 2011 (the effective date of Public Act
97-542) and before August 23, 2019 (the effective date of
Public Act 101-455) may, by ordinance or resolution, submit to
the voters of the county the question of reducing or
discontinuing the tax. In the ordinance or resolution, the
county board shall certify the question to the proper election
authority in accordance with the Election Code. The election
authority must submit the question in substantially the
following form:
Shall the school facility retailers' occupation tax
and service occupation tax (commonly referred to as the
"school facility sales tax") currently imposed in (name of
county) at a rate of (insert rate) be (reduced to (insert
rate))(discontinued)?
If a majority of the electors voting on the question vote in
the affirmative, then, subject to the provisions of subsection
(g) of this Section, the tax shall be reduced or discontinued
as set forth in the question.
(h-10) A county board in a county where a tax has been
imposed under this Section pursuant to a referendum held on or
after August 23, 2019 (the effective date of Public Act
101-455) may, by ordinance or resolution, submit to the voters
of the county the question of reducing or discontinuing the
tax. In the ordinance or resolution, the county board shall
certify the question to the proper election authority in
accordance with the Election Code. The election authority must

SB3019 Enrolled - 346 - LRB104 20255 HLH 33706 b
submit the question in substantially the following form:
Shall the school facility and resources retailers'
occupation tax and service occupation tax (commonly
referred to as the school facility and resources sales
tax) currently imposed in (name of county) at a rate of
(insert rate) be (reduced to (insert rate))
(discontinued)?
The election authority must record the votes as "Yes" or
"No".
If a majority of the electors voting on the question vote
in the affirmative, then, subject to the provisions of
subsection (g) of this Section, the tax shall be reduced or
discontinued as set forth in the question.
(i) This Section does not apply to Cook County.
(j) This Section may be cited as the County School
Facility and Resources Occupation Tax Law.
(Source: P.A. 102-700, eff. 4-19-22; 102-1062, eff. 7-1-22;
103-154, eff. 6-30-23; 103-592, eff. 1-1-25.)
(55 ILCS 5/5-1006.8)
Sec. 5-1006.8. County Cannabis Retailers' Occupation Tax
Law.
(a) This Section may be referred to as the County Cannabis
Retailers' Occupation Tax Law. The corporate authorities of
any county may, by ordinance, impose a tax upon all persons
engaged in the business of selling cannabis, other than

SB3019 Enrolled - 347 - LRB104 20255 HLH 33706 b
cannabis purchased under the Compassionate Use of Medical
Cannabis Program Act, at retail in the county on the gross
receipts from these sales made in the course of that business.
If imposed, the tax shall be imposed only in 0.25% increments.
The tax rate may not exceed: (i) 3.75% of the gross receipts of
sales made in unincorporated areas of the county; and (ii) 3%
of the gross receipts of sales made in a municipality located
in the county. The tax imposed under this Section and all civil
penalties that may be assessed as an incident of the tax shall
be collected and enforced by the Department of Revenue. The
Department of Revenue shall have full power to administer and
enforce this Section; to collect all taxes and penalties due
hereunder; to dispose of taxes and penalties so collected in
the manner hereinafter provided; and to determine all rights
to credit memoranda arising on account of the erroneous
payment of tax or penalty under this Section. In the
administration of and compliance with this Section, the
Department of Revenue and persons who are subject to this
Section shall have the same rights, remedies, privileges,
immunities, powers and duties, and be subject to the same
conditions, restrictions, limitations, penalties, and
definitions of terms, and employ the same modes of procedure,
as are described in Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m,
1n, 2 through 2-65 (in respect to all provisions therein other
than the State rate of tax), 2a, 2b, 2c, 2i, 3 (except as to
the disposition of taxes and penalties collected), 4, 5, 5a,

SB3019 Enrolled - 348 - LRB104 20255 HLH 33706 b
5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 5m, 5n, 6, 6a, 6b
6bb, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers'
Occupation Tax Act and Section 3-7 of the Uniform Penalty and
Interest Act as fully as if those provisions were set forth in
this Section.
(b) Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
seller's tax liability hereunder by separately stating that
tax as an additional charge, which charge may be stated in
combination, in a single amount, with any State tax that
sellers are required to collect.
(c) Whenever the Department of Revenue determines that a
refund should be made under this Section to a claimant instead
of issuing a credit memorandum, the Department of Revenue
shall notify the State Comptroller, who shall cause the order
to be drawn for the amount specified and to the person named in
the notification from the Department of Revenue.
(d) The Department of Revenue shall immediately pay over
to the State Treasurer, ex officio, as trustee, all taxes and
penalties collected hereunder for deposit into the Local
Cannabis Retailers' Occupation Tax Trust Fund.
(e) On or before the 25th day of each calendar month, the
Department of Revenue shall prepare and certify to the
Comptroller the amount of money to be disbursed from the Local
Cannabis Retailers' Occupation Tax Trust Fund to counties from
which retailers have paid taxes or penalties under this

SB3019 Enrolled - 349 - LRB104 20255 HLH 33706 b
Section during the second preceding calendar month. The amount
to be paid to each county shall be the amount (not including
credit memoranda) collected under this Section from sales made
in the county during the second preceding calendar month, plus
an amount the Department of Revenue determines is necessary to
offset any amounts that were erroneously paid to a different
taxing body, and not including an amount equal to the amount of
refunds made during the second preceding calendar month by the
Department on behalf of such county, and not including any
amount that the Department determines is necessary to offset
any amounts that were payable to a different taxing body but
were erroneously paid to the county, less 1.5% of the
remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the counties, shall
prepare and certify the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt by the
Comptroller of the disbursement certification to the counties
and the Tax Compliance and Administration Fund provided for in
this Section to be given to the Comptroller by the Department,
the Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with the directions contained
in the certification.
(f) An ordinance or resolution imposing or discontinuing a
tax under this Section or effecting a change in the rate

SB3019 Enrolled - 350 - LRB104 20255 HLH 33706 b
thereof that is adopted on or after June 25, 2019 (the
effective date of Public Act 101-27) and for which a certified
copy is filed with the Department on or before April 1, 2020
shall be administered and enforced by the Department beginning
on July 1, 2020. For ordinances filed with the Department
after April 1, 2020, an ordinance or resolution imposing or
discontinuing a tax under this Section or effecting a change
in the rate thereof shall either (i) be adopted and a certified
copy thereof filed with the Department on or before the first
day of April, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of July
next following the adoption and filing; or (ii) be adopted and
a certified copy thereof filed with the Department on or
before the first day of October, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of January next following the adoption and filing.
(g) Notwithstanding any provision in this Section to the
contrary, if an ordinance or resolution imposing a tax under
this Section was adopted on or before October 1, 2020 and a
certified copy thereof was filed with the Department of
Revenue on or before November 1, 2020, then the Department
shall proceed to administer and enforce this Section as of May
1, 2021 for such ordinances or resolutions.
(Source: P.A. 101-27, eff. 6-25-19; 101-363, eff. 8-9-19;
101-593, eff. 12-4-19; 102-2, eff. 4-2-21.)

SB3019 Enrolled - 351 - LRB104 20255 HLH 33706 b
(55 ILCS 5/5-1006.9)
Sec. 5-1006.9. County Grocery Occupation Tax Law.
(a) The corporate authorities of any county may, by
ordinance or resolution that takes effect on or after January
1, 2026, impose a tax upon all persons engaged in the business
of selling groceries at retail in the county, but outside of
any municipality, on the gross receipts from those sales made
in the course of that business. If imposed, the tax shall be at
the rate of 1% of the gross receipts from these sales.
The tax imposed by a county under this subsection and all
civil penalties that may be assessed as an incident of the tax
shall be collected and enforced by the Department. The
certificate of registration that is issued by the Department
to a retailer under the Retailers' Occupation Tax Act shall
permit the retailer to engage in a business that is taxable
under any ordinance or resolution enacted under this
subsection without registering separately with the Department
under that ordinance or resolution or under this subsection.
The Department shall have full power to administer and
enforce this subsection; to collect all taxes and penalties
due under this subsection; to dispose of taxes and penalties
so collected in the manner provided in this Section and under
rules adopted by the Department; and to determine all rights
to credit memoranda arising on account of the erroneous
payment of tax or penalty under this subsection.
In the administration of, and compliance with, this

SB3019 Enrolled - 352 - LRB104 20255 HLH 33706 b
subsection, the Department and persons who are subject to this
subsection shall have the same rights, remedies, privileges,
immunities, powers, and duties, and be subject to the same
conditions, restrictions, limitations, penalties and
definitions of terms, and employ the same modes of procedure,
as are prescribed in Sections 1, 2 through 2-65 (in respect to
all provisions therein other than the State rate of tax and
other than the exemption for food for human consumption that
is to be consumed off the premises where it is sold (other than
alcoholic liquor taxable under Section 8-1 of the Liquor
Control Act of 1934 beverages, food consisting of or infused
with adult use cannabis, soft drinks, candy, and food that has
been prepared for immediate consumption), which is authorized
to be taxed as provided in this subsection), 2c, 3 (except as
to the disposition of taxes and penalties collected), 4, 5,
5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 6d, 7, 8, 9,
10, 11, 11a, 12 and 13 of the Retailers' Occupation Tax Act and
all of the Uniform Penalty and Interest Act, as fully as if
those provisions were set forth in this Section.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
seller's tax liability hereunder by separately stating that
tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax that sellers
are required to collect under the Use Tax Act, pursuant to such
bracket schedules as the Department may prescribe.

SB3019 Enrolled - 353 - LRB104 20255 HLH 33706 b
(b) If a tax has been imposed under subsection (a), then a
service occupation tax must also be imposed at the same rate
upon all persons engaged, in the county but outside of a
municipality, in the business of making sales of service, at
the same rate of tax imposed under subsection (a), on the
selling price of all who, as an incident to making those sales
of service, transfer groceries, as defined in this Section,
transferred by the serviceman as an incident to a sale of
service.
The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the Department. The certificate of
registration that is issued by the Department to a retailer
under the Retailers' Occupation Tax Act or the Service
Occupation Tax Act shall permit the registrant to engage in a
business that is taxable under any ordinance or resolution
enacted pursuant to this subsection without registering
separately with the Department under the ordinance or
resolution or under this subsection.
The Department shall have full power to administer and
enforce this subsection, to collect all taxes and penalties
due under this subsection, to dispose of taxes and penalties
so collected in the manner provided in this Section and under
rules adopted by the Department, and to determine all rights
to credit memoranda arising on account of the erroneous
payment of a tax or penalty under this subsection.

SB3019 Enrolled - 354 - LRB104 20255 HLH 33706 b
In the administration of and compliance with this
subsection, the Department and persons who are subject to this
subsection shall have the same rights, remedies, privileges,
immunities, powers and duties, and be subject to the same
conditions, restrictions, limitations, penalties and
definitions of terms, and employ the same modes of procedure
as are set forth in Sections 2, 2c, 3 through 3-50 (in respect
to all provisions contained in those Sections other than: (i)
the State rate of tax; (ii) the exemption for food for human
consumption that is to be consumed off the premises where it is
sold (other than alcoholic liquor taxable under Section 8-1 of
the Liquor Control Act of 1934 beverages, food consisting of
or infused with adult use cannabis, soft drinks, candy, and
food that has been prepared for immediate consumption), which
is authorized to be taxed as provided in this subsection; and
(iii) the exemption for food prepared for immediate
consumption and transferred incident to a sale of service
subject to the Service Occupation Tax Act or the Service Use
Tax Act by an entity licensed under the Hospital Licensing
Act, the Nursing Home Care Act, the Assisted Living and Shared
Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
Specialized Mental Health Rehabilitation Act of 2013, or the
Child Care Act of 1969, or an entity that holds a permit issued
pursuant to the Life Care Facilities Act, which is authorized
to be taxed as provided in this subsection), 4, 5, 7, 8, 9
(except as to the disposition of taxes and penalties

SB3019 Enrolled - 355 - LRB104 20255 HLH 33706 b
collected), 10, 11, 12, 13, 15, 16, 17, 18, 19, and 20 of the
Service Occupation Tax Act and all provisions of the Uniform
Penalty and Interest Act, as fully as if those provisions were
set forth in this Section.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability by separately stating the tax as an
additional charge, which may be stated in combination, in a
single amount, with State tax that servicemen are authorized
to collect under the Service Use Tax Act, pursuant to any
bracketed schedules set forth by the Department.
(c) The Department shall immediately pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties
collected under this Section. Those taxes and penalties shall
be deposited into the County Grocery Tax Trust Fund, a trust
fund created in the State treasury. Except as otherwise
provided in this Section, moneys in the County Grocery Tax
Trust Fund shall be used to make payments to counties and for
the payment of refunds under this Section.
Moneys deposited into the County Grocery Tax Trust Fund
under this Section are not subject to appropriation and shall
be used as provided in this Section. All deposits into the
County Grocery Tax Trust Fund shall be held in the County
Grocery Tax Trust Fund by the State Treasurer, ex officio, as
trustee separate and apart from all public moneys or funds of
this State.

SB3019 Enrolled - 356 - LRB104 20255 HLH 33706 b
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the County Grocery Tax Trust Fund.
(d) As soon as possible after the first day of each month,
upon certification of the Department, the Comptroller shall
order transferred, and the Treasurer shall transfer, to the
STAR Bonds Revenue Fund the local sales tax increment, if any,
as defined in the Innovation Development and Economy Act,
collected under this Section.
After the monthly transfer to the STAR Bonds Revenue Fund,
if any, on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named counties, the
counties to be those from which retailers have paid taxes or
penalties under this Section to the Department during the
second preceding calendar month. The amount to be paid to each
county shall be the amount (not including credit memoranda)
collected under this Section during the second preceding
calendar month by the Department plus an amount the Department
determines is necessary to offset any amounts that were
erroneously paid to a different taxing body, and not including
an amount equal to the amount of refunds made during the second

SB3019 Enrolled - 357 - LRB104 20255 HLH 33706 b
preceding calendar month by the Department on behalf of such
county, and not including any amount that the Department
determines is necessary to offset any amounts that were
payable to a different taxing body but were erroneously paid
to the county, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund. Within 10 days
after receipt by the Comptroller of the disbursement
certification to the counties provided for in this Section to
be given to the Comptroller by the Department, the Comptroller
shall cause the orders to be drawn for the amounts in
accordance with the directions contained in the certification.
(e) Nothing in this Section shall be construed to
authorize a county to impose a tax upon the privilege of
engaging in any business which under the Constitution of the
United States may not be made the subject of taxation by this
State.
(f) Except as otherwise provided in this subsection, an
ordinance or resolution imposing or discontinuing the tax
hereunder or effecting a change in the rate thereof shall
either (i) be adopted and a certified copy thereof filed with
the Department on or before the first day of April, whereupon
the Department shall proceed to administer and enforce this
Section as of the first day of July next following the adoption
and filing, or (ii) be adopted and a certified copy thereof
filed with the Department on or before the first day of
October, whereupon the Department shall proceed to administer

SB3019 Enrolled - 358 - LRB104 20255 HLH 33706 b
and enforce this Section as of the first day of January next
following the adoption and filing.
(g) When certifying the amount of a monthly disbursement
to a county under this Section, the Department shall increase
or decrease the amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous
6 months from the time a misallocation is discovered.
(h) As used in this Section, "Department" means the
Department of Revenue.
For purposes of the tax authorized to be imposed under
subsection (a), "groceries" has the same meaning as "food for
human consumption that is to be consumed off the premises
where it is sold (other than alcoholic liquor taxable under
Section 8-1 of the Liquor Control Act of 1934 beverages, food
consisting of or infused with adult use cannabis, soft drinks,
candy, and food that has been prepared for immediate
consumption)", as further defined in Section 2-10 of the
Retailers' Occupation Tax Act.
For purposes of the tax authorized to be imposed under
subsection (b), "groceries" has the same meaning as "food for
human consumption that is to be consumed off the premises
where it is sold (other than alcoholic liquor taxable under
Section 8-1 of the Liquor Control Act of 1934 beverages, food
consisting of or infused with adult use cannabis, soft drinks,
candy, and food that has been prepared for immediate

SB3019 Enrolled - 359 - LRB104 20255 HLH 33706 b
consumption)", as further defined in Section 3-10 of the
Service Occupation Tax Act.
For purposes of the tax authorized to be imposed under
subsection (b), "groceries" also means food prepared for
immediate consumption and transferred incident to a sale of
service subject to the Service Occupation Tax Act or the
Service Use Tax Act by an entity licensed under the Hospital
Licensing Act, the Nursing Home Care Act, the Assisted Living
and Shared Housing Act, the ID/DD Community Care Act, the
MC/DD Act, the Specialized Mental Health Rehabilitation Act of
2013, or the Child Care Act of 1969, or an entity that holds a
permit issued pursuant to the Life Care Facilities Act.
(i) This Section may be referred to as the County Grocery
Occupation Tax Law.
(Source: P.A. 103-781, eff. 8-5-24; 104-6, eff. 1-1-26.)
(55 ILCS 5/5-1008.5)
Sec. 5-1008.5. Use and occupation taxes.
(a) The Rock Island County Board may adopt a resolution
that authorizes a referendum on the question of whether the
county shall be authorized to impose a retailers' occupation
tax, a service occupation tax, and a use tax at a rate of 1/4
of 1% on behalf of the economic development activities of Rock
Island County and communities located within the county. The
county board shall certify the question to the proper election
authorities who shall submit the question to the voters of the

SB3019 Enrolled - 360 - LRB104 20255 HLH 33706 b
county at the next regularly scheduled election in accordance
with the general election law. The question shall be in
substantially the following form:
Shall Rock Island County be authorized to impose a
retailers' occupation tax, a service occupation tax, and a
use tax at the rate of 1/4 of 1% for the sole purpose of
economic development activities, including creation and
retention of job opportunities, support of affordable
housing opportunities, and enhancement of quality of life
improvements?
Votes shall be recorded as "yes" or "no". If a majority of
all votes cast on the proposition are in favor of the
proposition, the county is authorized to impose the tax.
(b) The county shall impose the retailers' occupation tax
upon all persons engaged in the business of selling tangible
personal property at retail in the county, at the rate
approved by referendum, on the gross receipts from the sales
made in the course of those businesses within the county. This
additional tax may not be imposed on tangible personal
property taxed at the 1% rate under the Retailers' Occupation
Tax Act. Beginning December 1, 2019, this tax is not imposed on
sales of aviation fuel unless the tax revenue is expended for
airport-related purposes. If the county does not have an
airport-related purpose to which it dedicates aviation fuel
tax revenue, then aviation fuel is excluded from the tax. The
county must comply with the certification requirements for

SB3019 Enrolled - 361 - LRB104 20255 HLH 33706 b
airport-related purposes under Section 2-22 of the Retailers'
Occupation Tax Act. For purposes of this Section,
"airport-related purposes" has the meaning ascribed in Section
6z-20.2 of the State Finance Act. This exclusion for aviation
fuel only applies for so long as the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
county. The tax imposed under this Section and all civil
penalties that may be assessed as an incident of the tax shall
be collected and enforced by the Department of Revenue. The
Department has full power to administer and enforce this
Section; to collect all taxes and penalties so collected in
the manner provided in this Section; and to determine all
rights to credit memoranda arising on account of the erroneous
payment of tax or penalty under this Section. In the
administration of, and compliance with, this Section, the
Department and persons who are subject to this Section shall
(i) have the same rights, remedies, privileges, immunities,
powers and duties, (ii) be subject to the same conditions,
restrictions, limitations, penalties, exclusions, exemptions,
and definitions of terms, and (iii) employ the same modes of
procedure as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d,
1e, 1f, 1i, 1j, 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in respect to
all provisions other than the State rate of tax), 2-15 through
2-70, 2a, 2b, 2c, 3 (except as to the disposition of taxes and
penalties collected and provisions related to quarter monthly
payments, and except that the retailer's discount is not

SB3019 Enrolled - 362 - LRB104 20255 HLH 33706 b
allowed for taxes paid on aviation fuel that are subject to the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 5m,
5n, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the
Retailers' Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act, as fully as if those provisions were
set forth in this subsection.
Persons subject to any tax imposed under this subsection
may reimburse themselves for their seller's tax liability by
separately stating the tax as an additional charge, which
charge may be stated in combination, in a single amount, with
State taxes that sellers are required to collect, in
accordance with bracket schedules prescribed by the
Department.
Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the tax fund referenced under paragraph (g)
of this Section or the Local Government Aviation Trust Fund,
as appropriate.
If a tax is imposed under this subsection (b), a tax shall
also be imposed at the same rate under subsections (c) and (d)
of this Section.

SB3019 Enrolled - 363 - LRB104 20255 HLH 33706 b
For the purpose of determining whether a tax authorized
under this Section is applicable, a retail sale, by a producer
of coal or another mineral mined in Illinois, is a sale at
retail at the place where the coal or other mineral mined in
Illinois is extracted from the earth. This paragraph does not
apply to coal or another mineral when it is delivered or
shipped by the seller to the purchaser at a point outside
Illinois so that the sale is exempt under the federal
Constitution as a sale in interstate or foreign commerce.
Nothing in this Section shall be construed to authorize
the county to impose a tax upon the privilege of engaging in
any business that under the Constitution of the United States
may not be made the subject of taxation by this State.
(c) If a tax has been imposed under subsection (b), a
service occupation tax shall also be imposed at the same rate
upon all persons engaged, in the county, in the business of
making sales of service, who, as an incident to making those
sales of service, transfer tangible personal property within
the county as an incident to a sale of service. This additional
tax may not be imposed on tangible personal property taxed at
the 1% rate under the Service Occupation Tax Act. Beginning
December 1, 2019, this tax is not imposed on sales of aviation
fuel unless the tax revenue is expended for airport-related
purposes. If the county does not have an airport-related
purpose to which it dedicates aviation fuel tax revenue, then
aviation fuel is excluded from the tax. The county must comply

SB3019 Enrolled - 364 - LRB104 20255 HLH 33706 b
with the certification requirements for airport-related
purposes under Section 2-22 of the Retailers' Occupation Tax
Act. For purposes of this Section, "airport-related purposes"
has the meaning ascribed in Section 6z-20.2 of the State
Finance Act. This exclusion for aviation fuel only applies for
so long as the revenue use requirements of 49 U.S.C. 47107(b)
and 49 U.S.C. 47133 are binding on the county. The tax imposed
under this subsection and all civil penalties that may be
assessed as an incident of the tax shall be collected and
enforced by the Department of Revenue. The Department has full
power to administer and enforce this paragraph; to collect all
taxes and penalties due under this Section; to dispose of
taxes and penalties so collected in the manner provided in
this Section; and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty
under this Section. In the administration of, and compliance
with this paragraph, the Department and persons who are
subject to this paragraph shall (i) have the same rights,
remedies, privileges, immunities, powers, and duties, (ii) be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions, and definitions of terms,
and (iii) employ the same modes of procedure as are prescribed
in Sections 2 (except that the reference to State in the
definition of supplier maintaining a place of business in this
State shall mean the county), 2a, 2b, 3 through 3-55 (in
respect to all provisions other than the State rate of tax), 4

SB3019 Enrolled - 365 - LRB104 20255 HLH 33706 b
(except that the reference to the State shall be to the
county), 5, 7, 8 (except that the jurisdiction to which the tax
shall be a debt to the extent indicated in that Section 8 shall
be the county), 9 (except as to the disposition of taxes and
penalties collected, and except that the returned merchandise
credit for this tax may not be taken against any State tax, and
except that the retailer's discount is not allowed for taxes
paid on aviation fuel that are subject to the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 11,
12 (except the reference to Section 2b of the Retailers'
Occupation Tax Act), 13 (except that any reference to the
State shall mean the county), 15, 16, 17, 18, 19 and 20 of the
Service Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act, as fully as if those provisions were
set forth in this subsection.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability by separately stating the tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State tax that servicemen are
authorized to collect under the Service Use Tax Act, in
accordance with bracket schedules prescribed by the
Department.
Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State

SB3019 Enrolled - 366 - LRB104 20255 HLH 33706 b
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the tax fund referenced under paragraph (g)
of this Section or the Local Government Aviation Trust Fund,
as appropriate.
Nothing in this paragraph shall be construed to authorize
the county to impose a tax upon the privilege of engaging in
any business that under the Constitution of the United States
may not be made the subject of taxation by the State.
(c-5) If, on January 1, 2025, a unit of local government
has in effect a tax under this Section, or if, after January 1,
2025, a unit of local government imposes a tax under this
Section, then that tax applies to leases of tangible personal
property in effect, entered into, or renewed on or after that
date in the same manner as the tax under this Section and in
accordance with the changes made by this amendatory Act of the
103rd General Assembly.
(d) If a tax has been imposed under subsection (b), a use
tax shall also be imposed at the same rate upon the privilege
of using, in the county, any item of tangible personal
property that is purchased outside the county at retail from a
retailer, and that is titled or registered at a location
within the county with an agency of this State's government.
"Selling price" is defined as in the Use Tax Act. The tax shall
be collected from persons whose Illinois address for titling

SB3019 Enrolled - 367 - LRB104 20255 HLH 33706 b
or registration purposes is given as being in the county. The
tax shall be collected by the Department of Revenue for the
county. The tax must be paid to the State, or an exemption
determination must be obtained from the Department of Revenue,
before the title or certificate of registration for the
property may be issued. The tax or proof of exemption may be
transmitted to the Department by way of the State agency with
which, or the State officer with whom, the tangible personal
property must be titled or registered if the Department and
the State agency or State officer determine that this
procedure will expedite the processing of applications for
title or registration.
The Department has full power to administer and enforce
this paragraph; to collect all taxes, penalties, and interest
due under this Section; to dispose of taxes, penalties, and
interest so collected in the manner provided in this Section;
and to determine all rights to credit memoranda or refunds
arising on account of the erroneous payment of tax, penalty,
or interest under this Section. In the administration of, and
compliance with, this subsection, the Department and persons
who are subject to this paragraph shall (i) have the same
rights, remedies, privileges, immunities, powers, and duties,
(ii) be subject to the same conditions, restrictions,
limitations, penalties, exclusions, exemptions, and
definitions of terms, and (iii) employ the same modes of
procedure as are prescribed in Sections 2 (except the

SB3019 Enrolled - 368 - LRB104 20255 HLH 33706 b
definition of "retailer maintaining a place of business in
this State"), 3, 3-5, 3-10, 3-45, 3-55, 3-65, 3-70, 3-85, 3a,
4, 6, 7, 8 (except that the jurisdiction to which the tax shall
be a debt to the extent indicated in that Section 8 shall be
the county), 9 (except provisions relating to quarter monthly
payments), 10, 11, 12, 12a, 12b, 13, 14, 15, 19, 20, 21, and 22
of the Use Tax Act and Section 3-7 of the Uniform Penalty and
Interest Act, that are not inconsistent with this paragraph,
as fully as if those provisions were set forth in this
subsection.
Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the tax fund referenced under paragraph (g)
of this Section.
(e) A certificate of registration issued by the State
Department of Revenue to a retailer under the Retailers'
Occupation Tax Act or under the Service Occupation Tax Act
shall permit the registrant to engage in a business that is
taxed under the tax imposed under paragraphs (b), (c), or (d)
of this Section and no additional registration shall be
required. A certificate issued under the Use Tax Act or the
Service Use Tax Act shall be applicable with regard to any tax

SB3019 Enrolled - 369 - LRB104 20255 HLH 33706 b
imposed under paragraph (c) of this Section.
(f) The results of any election authorizing a proposition
to impose a tax under this Section or effecting a change in the
rate of tax shall be certified by the proper election
authorities and filed with the Illinois Department on or
before the first day of October. In addition, an ordinance
imposing, discontinuing, or effecting a change in the rate of
tax under this Section shall be adopted and a certified copy of
the ordinance filed with the Department on or before the first
day of October. After proper receipt of the certifications,
the Department shall proceed to administer and enforce this
Section as of the first day of January next following the
adoption and filing.
(g) Except as otherwise provided in paragraph (g-2), the
Department of Revenue shall, upon collecting any taxes and
penalties as provided in this Section, pay the taxes and
penalties over to the State Treasurer as trustee for the
county. The taxes and penalties shall be held in a trust fund
outside the State Treasury. On or before the 25th day of each
calendar month, the Department of Revenue shall prepare and
certify to the Comptroller of the State of Illinois the amount
to be paid to the county, which shall be the balance in the
fund, less any amount determined by the Department to be
necessary for the payment of refunds. Within 10 days after
receipt by the Comptroller of the certification of the amount
to be paid to the county, the Comptroller shall cause an order

SB3019 Enrolled - 370 - LRB104 20255 HLH 33706 b
to be drawn for payment for the amount in accordance with the
directions contained in the certification. Amounts received
from the tax imposed under this Section shall be used only for
the economic development activities of the county and
communities located within the county.
(g-2) Taxes and penalties collected on aviation fuel sold
on or after December 1, 2019, shall be immediately paid over by
the Department to the State Treasurer, ex officio, as trustee,
for deposit into the Local Government Aviation Trust Fund. The
Department shall only pay moneys into the Local Government
Aviation Trust Fund under this Section for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the county.
(h) When certifying the amount of a monthly disbursement
to the county under this Section, the Department shall
increase or decrease the amounts by an amount necessary to
offset any miscalculation of previous disbursements. The
offset amount shall be the amount erroneously disbursed within
the previous 6 months from the time a miscalculation is
discovered.
(i) This Section may be cited as the Rock Island County Use
and Occupation Tax Law.
(Source: P.A. 103-592, eff. 1-1-25.)
(55 ILCS 5/5-12001) (from Ch. 34, par. 5-12001)
Sec. 5-12001. Authority to regulate and restrict location

SB3019 Enrolled - 371 - LRB104 20255 HLH 33706 b
and use of structures. For the purpose of promoting the public
health, safety, morals, comfort and general welfare,
conserving the values of property throughout the county,
lessening or avoiding congestion in the public streets and
highways, and lessening or avoiding the hazards to persons and
damage to property resulting from the accumulation or runoff
of storm or flood waters, the county board or board of county
commissioners, as the case may be, of each county, shall have
the power to regulate and restrict the location and use of
buildings, structures and land for trade, industry, residence
and other uses which may be specified by such board, to
regulate and restrict the intensity of such uses, to establish
building or setback lines on or along any street, trafficway,
drive, parkway or storm or floodwater runoff channel or basin
outside the limits of cities, villages and incorporated towns
which have in effect municipal zoning ordinances; to divide
the entire county outside the limits of such cities, villages
and incorporated towns into districts of such number, shape,
area and of such different classes, according to the use of
land and buildings, the intensity of such use (including
height of buildings and structures and surrounding open space)
and other classification as may be deemed best suited to carry
out the purposes of this Division; to prohibit uses, buildings
or structures incompatible with the character of such
districts respectively; and to prevent additions to and
alteration or remodeling of existing buildings or structures

SB3019 Enrolled - 372 - LRB104 20255 HLH 33706 b
in such a way as to avoid the restrictions and limitations
lawfully imposed hereunder: Provided, that permits with
respect to the erection, maintenance, repair, alteration,
remodeling or extension of buildings or structures used or to
be used for agricultural purposes shall be issued free of any
charge. The corporate authorities of the county may by
ordinance require the construction of fences around or
protective covers over previously constructed artificial
basins of water dug in the ground and used for swimming or
wading, which are located on private residential property and
intended for the use of the owner and guests. In all ordinances
or resolutions passed under the authority of this Division,
due allowance shall be made for existing conditions, the
conservation of property values, the directions of building
development to the best advantage of the entire county, and
the uses to which property is devoted at the time of the
enactment of any such ordinance or resolution.
The powers by this Division given shall not be exercised
so as to deprive the owner of any existing property of its use
or maintenance for the purpose to which it is then lawfully
devoted, but provisions may be made for (i) the gradual
elimination of the uses of unimproved lands or lot areas when
the existing rights of the persons in possession are
terminated or when the uses to which they are devoted are
discontinued, (ii) the gradual elimination of uses to which
the buildings and structures are devoted if they are adaptable

SB3019 Enrolled - 373 - LRB104 20255 HLH 33706 b
to permitted uses, and (iii) the gradual elimination of the
buildings and structures when they are destroyed or damaged in
major part; nor shall they be exercised so as to impose
regulations, eliminate uses, buildings, or structures, or
require permits with respect to land used for agricultural
purposes, which includes the growing of farm crops, truck
garden crops, animal and poultry husbandry, apiculture,
aquaculture, dairying, floriculture, horticulture, nurseries,
tree farms, sod farms, pasturage, viticulture, and wholesale
greenhouses when such agricultural purposes constitute the
principal activity on the land, other than parcels of land
consisting of less than 5 acres from which $1,000 or less of
agricultural products were sold in any calendar year in
counties with a population between 300,000 and 400,000 or in
counties contiguous to a county with a population between
300,000 and 400,000, and other than parcels of land consisting
of less than 5 acres in counties with a population in excess of
400,000, or with respect to the erection, maintenance, repair,
alteration, remodeling or extension of buildings or structures
used or to be used for agricultural purposes upon such land
except that such buildings or structures for agricultural
purposes may be required to conform to building or set back
lines and counties may establish a minimum lot size for
residences on land used for agricultural purposes; nor shall
any such powers be so exercised as to prohibit the temporary
use of land for the installation, maintenance and operation of

SB3019 Enrolled - 374 - LRB104 20255 HLH 33706 b
facilities used by contractors in the ordinary course of
construction activities, except that such facilities may be
required to be located not less than 1,000 feet from any
building used for residential purposes, and except that the
period of such temporary use shall not exceed the duration of
the construction contract; nor shall any such powers include
the right to specify or regulate the type or location of any
poles, towers, wires, cables, conduits, vaults, laterals or
any other similar distributing equipment of a public utility
as defined in the Public Utilities Act, if the public utility
is subject to the Messages Tax Act, the Gas Revenue Tax Act or
the Public Utilities Revenue Act, or if such facilities or
equipment are located on any rights of way and are used for
railroad purposes, nor shall any such powers be exercised with
respect to uses, buildings, or structures of a public utility
as defined in the Public Utilities Act, nor shall any such
powers be exercised in any respect as to the facilities, as
defined in Section 5-12001.1, of a telecommunications carrier,
as also defined therein, except to the extent and in the manner
set forth in Section 5-12001.1. As used in this Act,
"agricultural purposes" do not include the extraction of sand,
gravel or limestone, and such activities may be regulated by
county zoning ordinance even when such activities are related
to an agricultural purpose.
Nothing in this Division shall be construed to restrict
the powers granted by statute to cities, villages and

SB3019 Enrolled - 375 - LRB104 20255 HLH 33706 b
incorporated towns as to territory contiguous to but outside
of the limits of such cities, villages and incorporated towns.
Any zoning ordinance enacted by a city, village or
incorporated town shall supersede, with respect to territory
within the corporate limits of the municipality, any county
zoning plan otherwise applicable. The powers granted to
counties by this Division shall be treated as in addition to
powers conferred by statute to control or approve maps, plats
or subdivisions. In this Division, "agricultural purposes"
include, without limitation, the growing, developing,
processing, conditioning, or selling of hybrid seed corn, seed
beans, seed oats, or other farm seeds.
Nothing in this Division shall be construed to prohibit
the corporate authorities of a county from adopting an
ordinance that exempts pleasure driveways or park districts,
as defined in the Park District Code, with a population of
greater than 100,000, from the exercise of the county's powers
under this Division.
The powers granted by this Division may be used to require
the creation and preservation of affordable housing, including
the power to provide increased density or other zoning
incentives to developers who are creating, establishing, or
preserving affordable housing.
(Source: P.A. 94-303, eff. 7-21-05.)
Section 70-75. The Illinois Municipal Code is amended by

SB3019 Enrolled - 376 - LRB104 20255 HLH 33706 b
changing Sections 8-11-1, 8-11-1.3, 8-11-1.6, 8-11-23,
8-11-24, and 11-74.3-6 as follows:
(65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax
Act. The corporate authorities of a home rule municipality may
impose a tax upon all persons engaged in the business of
selling tangible personal property, other than an item of
tangible personal property titled or registered with an agency
of this State's government, at retail in the municipality on
the gross receipts from these sales made in the course of such
business. If imposed, the tax shall only be imposed in 1/4%
increments. On and after September 1, 1991, this additional
tax may not be imposed on tangible personal property taxed at
the 1% rate under the Retailers' Occupation Tax Act (or at the
0% rate imposed under this amendatory Act of the 102nd General
Assembly). Beginning December 1, 2019, this tax is not imposed
on sales of aviation fuel unless the tax revenue is expended
for airport-related purposes. If a municipality does not have
an airport-related purpose to which it dedicates aviation fuel
tax revenue, then aviation fuel is excluded from the tax. Each
municipality must comply with the certification requirements
for airport-related purposes under Section 2-22 of the
Retailers' Occupation Tax Act. For purposes of this Section,
"airport-related purposes" has the meaning ascribed in Section
6z-20.2 of the State Finance Act. This exclusion for aviation

SB3019 Enrolled - 377 - LRB104 20255 HLH 33706 b
fuel only applies for so long as the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
municipality. The changes made to this Section by this
amendatory Act of the 101st General Assembly are a denial and
limitation of home rule powers and functions under subsection
(g) of Section 6 of Article VII of the Illinois Constitution.
The tax imposed by a home rule municipality under this Section
and all civil penalties that may be assessed as an incident of
the tax shall be collected and enforced by the State
Department of Revenue. The certificate of registration that is
issued by the Department to a retailer under the Retailers'
Occupation Tax Act shall permit the retailer to engage in a
business that is taxable under any ordinance or resolution
enacted pursuant to this Section without registering
separately with the Department under such ordinance or
resolution or under this Section. The Department shall have
full power to administer and enforce this Section; to collect
all taxes and penalties due hereunder; to dispose of taxes and
penalties so collected in the manner hereinafter provided; and
to determine all rights to credit memoranda arising on account
of the erroneous payment of tax or penalty hereunder. In the
administration of, and compliance with, this Section the
Department and persons who are subject to this Section shall
have the same rights, remedies, privileges, immunities, powers
and duties, and be subject to the same conditions,
restrictions, limitations, penalties and definitions of terms,

SB3019 Enrolled - 378 - LRB104 20255 HLH 33706 b
and employ the same modes of procedure, as are prescribed in
Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65
(in respect to all provisions therein other than the State
rate of tax), 2c, 3 (except as to the disposition of taxes and
penalties collected, and except that the retailer's discount
is not allowed for taxes paid on aviation fuel that are subject
to the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j,
5k, 5l, 5m, 5n, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of
the Retailers' Occupation Tax Act and Section 3-7 of the
Uniform Penalty and Interest Act, as fully as if those
provisions were set forth herein.
No tax may be imposed by a home rule municipality under
this Section unless the municipality also imposes a tax at the
same rate under Section 8-11-5 of this Act.
If, on January 1, 2025, a unit of local government has in
effect a tax under this Section, or if, after January 1, 2025,
a unit of local government imposes a tax under this Section,
then that tax applies to leases of tangible personal property
in effect, entered into, or renewed on or after that date in
the same manner as the tax under this Section and in accordance
with the changes made by this amendatory Act of the 103rd
General Assembly.
Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
seller's tax liability hereunder by separately stating that

SB3019 Enrolled - 379 - LRB104 20255 HLH 33706 b
tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax which sellers
are required to collect under the Use Tax Act, pursuant to such
bracket schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the home rule municipal retailers' occupation
tax fund or the Local Government Aviation Trust Fund, as
appropriate.
Except as otherwise provided in this paragraph, the
Department shall immediately pay over to the State Treasurer,
ex officio, as trustee, all taxes and penalties collected
hereunder for deposit into the Home Rule Municipal Retailers'
Occupation Tax Fund. Taxes and penalties collected on aviation
fuel sold on or after December 1, 2019, shall be immediately
paid over by the Department to the State Treasurer, ex
officio, as trustee, for deposit into the Local Government
Aviation Trust Fund. The Department shall only pay moneys into
the Local Government Aviation Trust Fund under this Section
for so long as the revenue use requirements of 49 U.S.C.
47107(b) and 49 U.S.C. 47133 are binding on the State.
As soon as possible after the first day of each month,

SB3019 Enrolled - 380 - LRB104 20255 HLH 33706 b
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for
sales within a STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities,
the municipalities to be those from which retailers have paid
taxes or penalties hereunder to the Department during the
second preceding calendar month. The amount to be paid to each
municipality shall be the amount (not including credit
memoranda and not including taxes and penalties collected on
aviation fuel sold on or after December 1, 2019) collected
hereunder during the second preceding calendar month by the
Department plus an amount the Department determines is
necessary to offset any amounts that were erroneously paid to
a different taxing body, and not including an amount equal to
the amount of refunds made during the second preceding
calendar month by the Department on behalf of such
municipality, and not including any amount that the Department
determines is necessary to offset any amounts that were
payable to a different taxing body but were erroneously paid

SB3019 Enrolled - 381 - LRB104 20255 HLH 33706 b
to the municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund, less 1.5% of the
remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt by the
Comptroller of the disbursement certification to the
municipalities and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in the certification.
In addition to the disbursement required by the preceding
paragraph and in order to mitigate delays caused by
distribution procedures, an allocation shall, if requested, be
made within 10 days after January 14, 1991, and in November of
1991 and each year thereafter, to each municipality that
received more than $500,000 during the preceding fiscal year,
(July 1 through June 30) whether collected by the municipality
or disbursed by the Department as required by this Section.
Within 10 days after January 14, 1991, participating
municipalities shall notify the Department in writing of their
intent to participate. In addition, for the initial
distribution, participating municipalities shall certify to

SB3019 Enrolled - 382 - LRB104 20255 HLH 33706 b
the Department the amounts collected by the municipality for
each month under its home rule occupation and service
occupation tax during the period July 1, 1989 through June 30,
1990. The allocation within 10 days after January 14, 1991,
shall be in an amount equal to the monthly average of these
amounts, excluding the 2 months of highest receipts. The
monthly average for the period of July 1, 1990 through June 30,
1991 will be determined as follows: the amounts collected by
the municipality under its home rule occupation and service
occupation tax during the period of July 1, 1990 through
September 30, 1990, plus amounts collected by the Department
and paid to such municipality through June 30, 1991, excluding
the 2 months of highest receipts. The monthly average for each
subsequent period of July 1 through June 30 shall be an amount
equal to the monthly distribution made to each such
municipality under the preceding paragraph during this period,
excluding the 2 months of highest receipts. The distribution
made in November 1991 and each year thereafter under this
paragraph and the preceding paragraph shall be reduced by the
amount allocated and disbursed under this paragraph in the
preceding period of July 1 through June 30. The Department
shall prepare and certify to the Comptroller for disbursement
the allocations made in accordance with this paragraph.
For the purpose of determining the local governmental unit
whose tax is applicable, a retail sale by a producer of coal or
other mineral mined in Illinois is a sale at retail at the

SB3019 Enrolled - 383 - LRB104 20255 HLH 33706 b
place where the coal or other mineral mined in Illinois is
extracted from the earth. This paragraph does not apply to
coal or other mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the United States Constitution as a sale
in interstate or foreign commerce.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the Constitution of the United States
may not be made the subject of taxation by this State.
An ordinance or resolution imposing or discontinuing a tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of June, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of September next following the adoption and filing.
Beginning January 1, 1992, an ordinance or resolution imposing
or discontinuing the tax hereunder or effecting a change in
the rate thereof shall be adopted and a certified copy thereof
filed with the Department on or before the first day of July,
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of October next
following such adoption and filing. Beginning January 1, 1993,
an ordinance or resolution imposing or discontinuing the tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department

SB3019 Enrolled - 384 - LRB104 20255 HLH 33706 b
on or before the first day of October, whereupon the
Department shall proceed to administer and enforce this
Section as of the first day of January next following the
adoption and filing. However, a municipality located in a
county with a population in excess of 3,000,000 that elected
to become a home rule unit at the general primary election in
1994 may adopt an ordinance or resolution imposing the tax
under this Section and file a certified copy of the ordinance
or resolution with the Department on or before July 1, 1994.
The Department shall then proceed to administer and enforce
this Section as of October 1, 1994. Beginning April 1, 1998, an
ordinance or resolution imposing or discontinuing the tax
hereunder or effecting a change in the rate thereof shall
either (i) be adopted and a certified copy thereof filed with
the Department on or before the first day of April, whereupon
the Department shall proceed to administer and enforce this
Section as of the first day of July next following the adoption
and filing; or (ii) be adopted and a certified copy thereof
filed with the Department on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce this Section as of the first day of January next
following the adoption and filing.
When certifying the amount of a monthly disbursement to a
municipality under this Section, the Department shall increase
or decrease the amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount

SB3019 Enrolled - 385 - LRB104 20255 HLH 33706 b
shall be the amount erroneously disbursed within the previous
6 months from the time a misallocation is discovered.
Any unobligated balance remaining in the Municipal
Retailers' Occupation Tax Fund on December 31, 1989, which
fund was abolished by Public Act 85-1135, and all receipts of
municipal tax as a result of audits of liability periods prior
to January 1, 1990, shall be paid into the Local Government Tax
Fund for distribution as provided by this Section prior to the
enactment of Public Act 85-1135. All receipts of municipal tax
as a result of an assessment not arising from an audit, for
liability periods prior to January 1, 1990, shall be paid into
the Local Government Tax Fund for distribution before July 1,
1990, as provided by this Section prior to the enactment of
Public Act 85-1135; and on and after July 1, 1990, all such
receipts shall be distributed as provided in Section 6z-18 of
the State Finance Act.
As used in this Section, "municipal" and "municipality"
means a city, village or incorporated town, including an
incorporated town that has superseded a civil township.
This Section shall be known and may be cited as the Home
Rule Municipal Retailers' Occupation Tax Act.
(Source: P.A. 102-700, eff. 4-19-22; 103-592, eff. 1-1-25.)
(65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
Sec. 8-11-1.3. Non-Home Rule Municipal Retailers'
Occupation Tax Act. The corporate authorities of a non-home

SB3019 Enrolled - 386 - LRB104 20255 HLH 33706 b
rule municipality may impose, by ordinance or resolution
adopted in the manner described in Section 8-11-1.1, a tax
upon all persons engaged in the business of selling tangible
personal property, other than on an item of tangible personal
property which is titled and registered by an agency of this
State's Government, at retail in the municipality. If imposed,
the tax shall be imposed on the gross receipts from such sales
made in the course of such business. The proceeds of the tax
may be used for public infrastructure or for property tax
relief or both, as defined in Section 8-11-1.2. If the tax is
approved by referendum on or after July 14, 2010 (the
effective date of Public Act 96-1057) and before August 5,
2024 (the effective date of Public Act 103-781), the corporate
authorities of the non-home rule municipality may, until
January 1, 2031, use the proceeds of the tax for expenditure on
municipal operations, in addition to or in lieu of any
expenditure on public infrastructure or for property tax
relief. If the tax is approved by an ordinance or resolution
adopted on or after August 5, 2024 (the effective date of
Public Act 103-781), the corporate authorities of the non-home
rule municipality may, until January 1, 2031, use the proceeds
of the tax for expenditure on municipal operations, in
addition to or in lieu of any expenditure on public
infrastructure or for property tax relief. The tax imposed may
not be more than 1% and may be imposed only in 1/4% increments.
The tax may not be imposed on tangible personal property taxed

SB3019 Enrolled - 387 - LRB104 20255 HLH 33706 b
at the 1% rate under the Retailers' Occupation Tax Act (or at
the 0% rate imposed under this amendatory Act of the 102nd
General Assembly). Beginning December 1, 2019, this tax is not
imposed on sales of aviation fuel unless the tax revenue is
expended for airport-related purposes. If a municipality does
not have an airport-related purpose to which it dedicates
aviation fuel tax revenue, then aviation fuel is excluded from
the tax. Each municipality must comply with the certification
requirements for airport-related purposes under Section 2-22
of the Retailers' Occupation Tax Act. For purposes of this
Section, "airport-related purposes" has the meaning ascribed
in Section 6z-20.2 of the State Finance Act. This exclusion
for aviation fuel only applies for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the municipality. The tax imposed by a municipality
pursuant to this Section and all civil penalties that may be
assessed as an incident thereof shall be collected and
enforced by the State Department of Revenue. The certificate
of registration which is issued by the Department to a
retailer under the Retailers' Occupation Tax Act shall permit
such retailer to engage in a business which is taxable under
any ordinance or resolution enacted pursuant to this Section
without registering separately with the Department under such
ordinance or resolution or under this Section. The Department
shall have full power to administer and enforce this Section;
to collect all taxes and penalties due hereunder; to dispose

SB3019 Enrolled - 388 - LRB104 20255 HLH 33706 b
of taxes and penalties so collected in the manner hereinafter
provided, and to determine all rights to credit memoranda,
arising on account of the erroneous payment of tax or penalty
hereunder. In the administration of, and compliance with, this
Section, the Department and persons who are subject to this
Section shall have the same rights, remedies, privileges,
immunities, powers and duties, and be subject to the same
conditions, restrictions, limitations, penalties and
definitions of terms, and employ the same modes of procedure,
as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j,
2 through 2-65 (in respect to all provisions therein other
than the State rate of tax), 2c, 3 (except as to the
disposition of taxes and penalties collected, and except that
the retailer's discount is not allowed for taxes paid on
aviation fuel that are subject to the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c,
5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 5m, 5n, 6, 6a, 6b, 6c, 6d,
7, 8, 9, 10, 11, 12 and 13 of the Retailers' Occupation Tax Act
and Section 3-7 of the Uniform Penalty and Interest Act as
fully as if those provisions were set forth herein.
No municipality may impose a tax under this Section unless
the municipality also imposes a tax at the same rate under
Section 8-11-1.4 of this Code.
If, on January 1, 2025, a unit of local government has in
effect a tax under this Section, or if, after January 1, 2025,
a unit of local government imposes a tax under this Section,

SB3019 Enrolled - 389 - LRB104 20255 HLH 33706 b
then that tax applies to leases of tangible personal property
in effect, entered into, or renewed on or after that date in
the same manner as the tax under this Section and in accordance
with the changes made by this amendatory Act of the 103rd
General Assembly.
Persons subject to any tax imposed pursuant to the
authority granted in this Section may reimburse themselves for
their seller's tax liability hereunder by separately stating
such tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax which sellers
are required to collect under the Use Tax Act, pursuant to such
bracket schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in such
notification from the Department. Such refund shall be paid by
the State Treasurer out of the non-home rule municipal
retailers' occupation tax fund or the Local Government
Aviation Trust Fund, as appropriate.
Except as otherwise provided, the Department shall
forthwith pay over to the State Treasurer, ex officio, as
trustee, all taxes and penalties collected hereunder for
deposit into the Non-Home Rule Municipal Retailers' Occupation
Tax Fund. Taxes and penalties collected on aviation fuel sold

SB3019 Enrolled - 390 - LRB104 20255 HLH 33706 b
on or after December 1, 2019, shall be immediately paid over by
the Department to the State Treasurer, ex officio, as trustee,
for deposit into the Local Government Aviation Trust Fund. The
Department shall only pay moneys into the Local Government
Aviation Trust Fund under this Section for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the municipality.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for
sales within a STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities,
the municipalities to be those from which retailers have paid
taxes or penalties hereunder to the Department during the
second preceding calendar month. The amount to be paid to each
municipality shall be the amount (not including credit
memoranda and not including taxes and penalties collected on
aviation fuel sold on or after December 1, 2019) collected
hereunder during the second preceding calendar month by the

SB3019 Enrolled - 391 - LRB104 20255 HLH 33706 b
Department plus an amount the Department determines is
necessary to offset any amounts which were erroneously paid to
a different taxing body, and not including an amount equal to
the amount of refunds made during the second preceding
calendar month by the Department on behalf of such
municipality, and not including any amount which the
Department determines is necessary to offset any amounts which
were payable to a different taxing body but were erroneously
paid to the municipality, and not including any amounts that
are transferred to the STAR Bonds Revenue Fund, less 1.5% of
the remainder, which the Department shall transfer into the
Tax Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt, by the
Comptroller, of the disbursement certification to the
municipalities and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in such certification.
For the purpose of determining the local governmental unit
whose tax is applicable, a retail sale, by a producer of coal
or other mineral mined in Illinois, is a sale at retail at the
place where the coal or other mineral mined in Illinois is

SB3019 Enrolled - 392 - LRB104 20255 HLH 33706 b
extracted from the earth. This paragraph does not apply to
coal or other mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the Federal Constitution as a sale in
interstate or foreign commerce.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the constitution of the United States
may not be made the subject of taxation by this State.
When certifying the amount of a monthly disbursement to a
municipality under this Section, the Department shall increase
or decrease such amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous
6 months from the time a misallocation is discovered.
The Department of Revenue shall implement Public Act
91-649 so as to collect the tax on and after January 1, 2002.
As used in this Section, "municipal" and "municipality"
mean a city, village, or incorporated town, including an
incorporated town which has superseded a civil township.
This Section shall be known and may be cited as the
Non-Home Rule Municipal Retailers' Occupation Tax Act.
(Source: P.A. 102-700, eff. 4-19-22; 103-592, eff. 1-1-25;
103-1055, eff. 12-20-24.)
(65 ILCS 5/8-11-1.6)

SB3019 Enrolled - 393 - LRB104 20255 HLH 33706 b
Sec. 8-11-1.6. Non-home rule municipal retailers'
occupation tax; municipalities between 20,000 and 25,000. The
corporate authorities of a non-home rule municipality with a
population of more than 20,000 but less than 25,000 that has,
prior to January 1, 1987, established a Redevelopment Project
Area that has been certified as a State Sales Tax Boundary and
has issued bonds or otherwise incurred indebtedness to pay for
costs in excess of $5,000,000, which is secured in part by a
tax increment allocation fund, in accordance with the
provisions of Division 11-74.4 of this Code may, by passage of
an ordinance, impose a tax upon all persons engaged in the
business of selling tangible personal property, other than on
an item of tangible personal property that is titled and
registered by an agency of this State's Government, at retail
in the municipality. This tax may not be imposed on tangible
personal property taxed at the 1% rate under the Retailers'
Occupation Tax Act (or at the 0% rate imposed under this
amendatory Act of the 102nd General Assembly). Beginning
December 1, 2019, this tax is not imposed on sales of aviation
fuel unless the tax revenue is expended for airport-related
purposes. If a municipality does not have an airport-related
purpose to which it dedicates aviation fuel tax revenue, then
aviation fuel is excluded from the tax. Each municipality must
comply with the certification requirements for airport-related
purposes under Section 2-22 of the Retailers' Occupation Tax
Act. For purposes of this Section, "airport-related purposes"

SB3019 Enrolled - 394 - LRB104 20255 HLH 33706 b
has the meaning ascribed in Section 6z-20.2 of the State
Finance Act. This exclusion for aviation fuel only applies for
so long as the revenue use requirements of 49 U.S.C. 47107(b)
and 49 U.S.C. 47133 are binding on the municipality. If
imposed, the tax shall only be imposed in .25% increments of
the gross receipts from such sales made in the course of
business. Any tax imposed by a municipality under this Section
and all civil penalties that may be assessed as an incident
thereof shall be collected and enforced by the State
Department of Revenue. An ordinance imposing a tax hereunder
or effecting a change in the rate thereof shall be adopted and
a certified copy thereof filed with the Department on or
before the first day of October, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of January next following such adoption and filing.
The certificate of registration that is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act shall permit the retailer to engage in a business that is
taxable under any ordinance or resolution enacted under this
Section without registering separately with the Department
under the ordinance or resolution or under this Section. The
Department shall have full power to administer and enforce
this Section, to collect all taxes and penalties due
hereunder, to dispose of taxes and penalties so collected in
the manner hereinafter provided, and to determine all rights
to credit memoranda, arising on account of the erroneous

SB3019 Enrolled - 395 - LRB104 20255 HLH 33706 b
payment of tax or penalty hereunder. In the administration of,
and compliance with this Section, the Department and persons
who are subject to this Section shall have the same rights,
remedies, privileges, immunities, powers, and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, and definitions of terms, and employ the same modes
of procedure, as are prescribed in Sections 1, 1a, 1a-1, 1d,
1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
therein other than the State rate of tax), 2c, 3 (except as to
the disposition of taxes and penalties collected, and except
that the retailer's discount is not allowed for taxes paid on
aviation fuel that are subject to the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c,
5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 5m, 5n, 6, 6a, 6b, 6c, 6d,
7, 8, 9, 10, 11, 12 and 13 of the Retailers' Occupation Tax Act
and Section 3-7 of the Uniform Penalty and Interest Act as
fully as if those provisions were set forth herein.
A tax may not be imposed by a municipality under this
Section unless the municipality also imposes a tax at the same
rate under Section 8-11-1.7 of this Act.
If, on January 1, 2025, a unit of local government has in
effect a tax under this Section, or if, after January 1, 2025,
a unit of local government imposes a tax under this Section,
then that tax applies to leases of tangible personal property
in effect, entered into, or renewed on or after that date in
the same manner as the tax under this Section and in accordance

SB3019 Enrolled - 396 - LRB104 20255 HLH 33706 b
with the changes made by this amendatory Act of the 103rd
General Assembly.
Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
seller's tax liability hereunder by separately stating the tax
as an additional charge, which charge may be stated in
combination, in a single amount, with State tax which sellers
are required to collect under the Use Tax Act, pursuant to such
bracket schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant, instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Non-Home Rule Municipal Retailers'
Occupation Tax Fund, which is hereby created or the Local
Government Aviation Trust Fund, as appropriate.
Except as otherwise provided in this paragraph, the
Department shall forthwith pay over to the State Treasurer, ex
officio, as trustee, all taxes and penalties collected
hereunder for deposit into the Non-Home Rule Municipal
Retailers' Occupation Tax Fund. Taxes and penalties collected
on aviation fuel sold on or after December 1, 2019, shall be
immediately paid over by the Department to the State
Treasurer, ex officio, as trustee, for deposit into the Local

SB3019 Enrolled - 397 - LRB104 20255 HLH 33706 b
Government Aviation Trust Fund. The Department shall only pay
moneys into the Local Government Aviation Trust Fund under
this Section for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
municipality.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for
sales within a STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities,
the municipalities to be those from which retailers have paid
taxes or penalties hereunder to the Department during the
second preceding calendar month. The amount to be paid to each
municipality shall be the amount (not including credit
memoranda and not including taxes and penalties collected on
aviation fuel sold on or after December 1, 2019) collected
hereunder during the second preceding calendar month by the
Department plus an amount the Department determines is
necessary to offset any amounts that were erroneously paid to

SB3019 Enrolled - 398 - LRB104 20255 HLH 33706 b
a different taxing body, and not including an amount equal to
the amount of refunds made during the second preceding
calendar month by the Department on behalf of the
municipality, and not including any amount that the Department
determines is necessary to offset any amounts that were
payable to a different taxing body but were erroneously paid
to the municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund, less 1.5% of the
remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt by the
Comptroller of the disbursement certification to the
municipalities and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in the certification.
For the purpose of determining the local governmental unit
whose tax is applicable, a retail sale by a producer of coal or
other mineral mined in Illinois is a sale at retail at the
place where the coal or other mineral mined in Illinois is
extracted from the earth. This paragraph does not apply to
coal or other mineral when it is delivered or shipped by the

SB3019 Enrolled - 399 - LRB104 20255 HLH 33706 b
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the federal Constitution as a sale in
interstate or foreign commerce.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the constitution of the United States
may not be made the subject of taxation by this State.
When certifying the amount of a monthly disbursement to a
municipality under this Section, the Department shall increase
or decrease the amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous
6 months from the time a misallocation is discovered.
As used in this Section, "municipal" and "municipality"
means a city, village, or incorporated town, including an
incorporated town that has superseded a civil township.
(Source: P.A. 102-700, eff. 4-19-22; 103-592, eff. 1-1-25.)
(65 ILCS 5/8-11-23)
Sec. 8-11-23. Municipal Cannabis Retailers' Occupation Tax
Law.
(a) This Section may be referred to as the Municipal
Cannabis Retailers' Occupation Tax Law. The corporate
authorities of any municipality may, by ordinance, impose a
tax upon all persons engaged in the business of selling
cannabis, other than cannabis purchased under the

SB3019 Enrolled - 400 - LRB104 20255 HLH 33706 b
Compassionate Use of Medical Cannabis Program Act, at retail
in the municipality on the gross receipts from these sales
made in the course of that business. If imposed, the tax may
not exceed 3% of the gross receipts from these sales and shall
only be imposed in 1/4% increments. The tax imposed under this
Section and all civil penalties that may be assessed as an
incident of the tax shall be collected and enforced by the
Department of Revenue. The Department of Revenue shall have
full power to administer and enforce this Section; to collect
all taxes and penalties due hereunder; to dispose of taxes and
penalties so collected in the manner hereinafter provided; and
to determine all rights to credit memoranda arising on account
of the erroneous payment of tax or penalty under this Section.
In the administration of and compliance with this Section, the
Department and persons who are subject to this Section shall
have the same rights, remedies, privileges, immunities, powers
and duties, and be subject to the same conditions,
restrictions, limitations, penalties and definitions of terms,
and employ the same modes of procedure, as are prescribed in
Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65
(in respect to all provisions therein other than the State
rate of tax), 2a, 2b, 2c, 2i, 3 (except as to the disposition
of taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e,
5f, 5g, 5h, 5i, 5j, 5k, 5l, 5m, 5n, 6, 6a, 6b, 6c, 6d, 7, 8, 9,
10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act
and Section 3-7 of the Uniform Penalty and Interest Act, as

SB3019 Enrolled - 401 - LRB104 20255 HLH 33706 b
fully as if those provisions were set forth herein.
(b) Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
seller's tax liability hereunder by separately stating that
tax as an additional charge, which charge may be stated in
combination, in a single amount, with any State tax that
sellers are required to collect.
(c) Whenever the Department of Revenue determines that a
refund should be made under this Section to a claimant instead
of issuing a credit memorandum, the Department of Revenue
shall notify the State Comptroller, who shall cause the order
to be drawn for the amount specified and to the person named in
the notification from the Department of Revenue.
(d) The Department of Revenue shall immediately pay over
to the State Treasurer, ex officio, as trustee, all taxes and
penalties collected hereunder for deposit into the Local
Cannabis Retailers' Occupation Tax Trust Fund.
(e) On or before the 25th day of each calendar month, the
Department of Revenue shall prepare and certify to the
Comptroller the amount of money to be disbursed from the Local
Cannabis Retailers' Occupation Tax Trust Fund to
municipalities from which retailers have paid taxes or
penalties under this Section during the second preceding
calendar month. The amount to be paid to each municipality
shall be the amount (not including credit memoranda) collected
under this Section from sales made in the municipality during

SB3019 Enrolled - 402 - LRB104 20255 HLH 33706 b
the second preceding calendar month, plus an amount the
Department of Revenue determines is necessary to offset any
amounts that were erroneously paid to a different taxing body,
and not including an amount equal to the amount of refunds made
during the second preceding calendar month by the Department
on behalf of such municipality, and not including any amount
that the Department determines is necessary to offset any
amounts that were payable to a different taxing body but were
erroneously paid to the municipality, less 1.5% of the
remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt by the
Comptroller of the disbursement certification to the
municipalities and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in the certification.
(f) An ordinance or resolution imposing or discontinuing a
tax under this Section or effecting a change in the rate
thereof that is adopted on or after June 25, 2019 (the
effective date of Public Act 101-27) and for which a certified
copy is filed with the Department on or before April 1, 2020

SB3019 Enrolled - 403 - LRB104 20255 HLH 33706 b
shall be administered and enforced by the Department beginning
on July 1, 2020. For ordinances filed with the Department
after April 1, 2020, an ordinance or resolution imposing or
discontinuing a tax under this Section or effecting a change
in the rate thereof shall either (i) be adopted and a certified
copy thereof filed with the Department on or before the first
day of April, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of July
next following the adoption and filing; or (ii) be adopted and
a certified copy thereof filed with the Department on or
before the first day of October, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of January next following the adoption and filing.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
(65 ILCS 5/8-11-24)
Sec. 8-11-24. Municipal Grocery Occupation Tax Law.
(a) The corporate authorities of any municipality may, by
ordinance or resolution that takes effect on or after January
1, 2026, impose a tax upon all persons engaged in the business
of selling groceries at retail in the municipality on the
gross receipts from those sales made in the course of that
business. If imposed, the tax shall be at the rate of 1% of the
gross receipts from these sales.
The tax imposed by a municipality under this subsection
and all civil penalties that may be assessed as an incident of

SB3019 Enrolled - 404 - LRB104 20255 HLH 33706 b
the tax shall be collected and enforced by the Department. The
certificate of registration that is issued by the Department
to a retailer under the Retailers' Occupation Tax Act shall
permit the retailer to engage in a business that is taxable
under any ordinance or resolution enacted under this
subsection without registering separately with the Department
under that ordinance or resolution or under this subsection.
The Department shall have full power to administer and
enforce this subsection; to collect all taxes and penalties
due under this subsection; to dispose of taxes and penalties
so collected in the manner provided in this Section and under
rules adopted by the Department; and to determine all rights
to credit memoranda arising on account of the erroneous
payment of tax or penalty under this subsection.
In the administration of, and compliance with, this
subsection, the Department and persons who are subject to this
subsection shall have the same rights, remedies, privileges,
immunities, powers, and duties, and be subject to the same
conditions, restrictions, limitations, penalties and
definitions of terms, and employ the same modes of procedure,
as are prescribed in Sections 1, 2 through 2-65 (in respect to
all provisions therein other than the State rate of tax and
other than the exemption for food for human consumption that
is to be consumed off the premises where it is sold (other than
alcoholic liquor taxable under Section 8-1 of the Liquor
Control Act of 1934 beverages, food consisting of or infused

SB3019 Enrolled - 405 - LRB104 20255 HLH 33706 b
with adult use cannabis, soft drinks, candy, and food that has
been prepared for immediate consumption), which is authorized
to be taxed as provided in this subsection), 2c, 3 (except as
to the disposition of taxes and penalties collected), 4, 5,
5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 6d, 7, 8, 9,
10, 11, 11a, 12 and 13 of the Retailers' Occupation Tax Act and
all of the Uniform Penalty and Interest Act, as fully as if
those provisions were set forth in this Section.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
seller's tax liability hereunder by separately stating that
tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax which sellers
are required to collect under the Use Tax Act, pursuant to such
bracket schedules as the Department may prescribe.
(b) If a tax has been imposed under subsection (a), then a
service occupation tax must also be imposed at the same rate
upon all persons engaged, in the municipality, in the business
of making sales of service, at the same rate of tax imposed
under subsection (a), on the selling price of all who, as an
incident to making those sales of service, transfer groceries,
as defined in this Section, transferred by the serviceman as
an incident to a sale of service.
The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the Department. The certificate of

SB3019 Enrolled - 406 - LRB104 20255 HLH 33706 b
registration that is issued by the Department to a retailer
under the Retailers' Occupation Tax Act or the Service
Occupation Tax Act shall permit the registrant to engage in a
business that is taxable under any ordinance or resolution
enacted pursuant to this subsection without registering
separately with the Department under the ordinance or
resolution or under this subsection.
The Department shall have full power to administer and
enforce this subsection, to collect all taxes and penalties
due under this subsection, to dispose of taxes and penalties
so collected in the manner provided in this Section and under
rules adopted by the Department, and to determine all rights
to credit memoranda arising on account of the erroneous
payment of a tax or penalty under this subsection.
In the administration of and compliance with this
subsection, the Department and persons who are subject to this
subsection shall have the same rights, remedies, privileges,
immunities, powers and duties, and be subject to the same
conditions, restrictions, limitations, penalties and
definitions of terms, and employ the same modes of procedure
as are set forth in Sections 2, 2c, 3 through 3-50 (in respect
to all provisions contained in those Sections other than (i)
the State rate of tax; (ii) the exemption for food for human
consumption that is to be consumed off the premises where it is
sold (other than alcoholic liquor taxable under Section 8-1 of
the Liquor Control Act of 1934 beverages, food consisting of

SB3019 Enrolled - 407 - LRB104 20255 HLH 33706 b
or infused with adult use cannabis, soft drinks, candy, and
food that has been prepared for immediate consumption), which
is authorized to be taxed as provided in this subsection; and
(iii) the exemption for food prepared for immediate
consumption and transferred incident to a sale of service
subject to the Service Occupation Tax Act or the Service Use
Tax Act by an entity licensed under the Hospital Licensing
Act, the Nursing Home Care Act, the Assisted Living and Shared
Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
Specialized Mental Health Rehabilitation Act of 2013, or the
Child Care Act of 1969, or an entity that holds a permit issued
pursuant to the Life Care Facilities Act, which is authorized
to be taxed as provided in this subsection), 4, 5, 7, 8, 9
(except as to the disposition of taxes and penalties
collected), 10, 11, 12, 13, 15, 16, 17, 18, 19, and 20 of the
Service Occupation Tax Act and all provisions of the Uniform
Penalty and Interest Act, as fully as if those provisions were
set forth in this Section.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability by separately stating the tax as an
additional charge, which may be stated in combination, in a
single amount, with State tax that servicemen are authorized
to collect under the Service Use Tax Act, pursuant to any
bracketed schedules set forth by the Department.
(c) The Department shall immediately pay over to the State

SB3019 Enrolled - 408 - LRB104 20255 HLH 33706 b
Treasurer, ex officio, as trustee, all taxes and penalties
collected under this Section. Those taxes and penalties shall
be deposited into the Municipal Grocery Tax Trust Fund, a
trust fund created in the State treasury. Except as otherwise
provided in this Section, moneys in the Municipal Grocery Tax
Trust Fund shall be used to make payments to municipalities
and for the payment of refunds under this Section.
Moneys deposited into the Municipal Grocery Tax Trust Fund
under this Section are not subject to appropriation and shall
be used as provided in this Section. All deposits into the
Municipal Grocery Tax Trust Fund shall be held in the
Municipal Grocery Tax Trust Fund by the State Treasurer, ex
officio, as trustee separate and apart from all public moneys
or funds of this State.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Municipal Grocery Tax Trust Fund.
(d) As soon as possible after the first day of each month,
upon certification of the Department, the Comptroller shall
order transferred, and the Treasurer shall transfer, to the
STAR Bonds Revenue Fund the local sales tax increment, if any,
as defined in the Innovation Development and Economy Act,

SB3019 Enrolled - 409 - LRB104 20255 HLH 33706 b
collected under this Section.
After the monthly transfer to the STAR Bonds Revenue Fund,
if any, on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities,
the municipalities to be those from which retailers have paid
taxes or penalties under this Section to the Department during
the second preceding calendar month. The amount to be paid to
each municipality shall be the amount (not including credit
memoranda) collected under this Section during the second
preceding calendar month by the Department plus an amount the
Department determines is necessary to offset any amounts that
were erroneously paid to a different taxing body, and not
including an amount equal to the amount of refunds made during
the second preceding calendar month by the Department on
behalf of such municipality, and not including any amount that
the Department determines is necessary to offset any amounts
that were payable to a different taxing body but were
erroneously paid to the municipality, and not including any
amounts that are transferred to the STAR Bonds Revenue Fund.
Within 10 days after receipt by the Comptroller of the
disbursement certification to the municipalities provided for
in this Section to be given to the Comptroller by the
Department, the Comptroller shall cause the orders to be drawn
for the amounts in accordance with the directions contained in
the certification.

SB3019 Enrolled - 410 - LRB104 20255 HLH 33706 b
(e) Nothing in this Section shall be construed to
authorize a municipality to impose a tax upon the privilege of
engaging in any business which under the Constitution of the
United States may not be made the subject of taxation by this
State.
(f) Except as otherwise provided in this subsection, an
ordinance or resolution imposing or discontinuing the tax
hereunder or effecting a change in the rate thereof shall
either (i) be adopted and a certified copy thereof filed with
the Department on or before the first day of April, whereupon
the Department shall proceed to administer and enforce this
Section as of the first day of July next following the adoption
and filing or (ii) be adopted and a certified copy thereof
filed with the Department on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce this Section as of the first day of January next
following the adoption and filing.
(g) When certifying the amount of a monthly disbursement
to a municipality under this Section, the Department shall
increase or decrease the amount by an amount necessary to
offset any misallocation of previous disbursements. The offset
amount shall be the amount erroneously disbursed within the
previous 6 months from the time a misallocation is discovered.
(h) As used in this Section, "Department" means the
Department of Revenue.
For purposes of the tax authorized to be imposed under

SB3019 Enrolled - 411 - LRB104 20255 HLH 33706 b
subsection (a), "groceries" has the same meaning as "food for
human consumption that is to be consumed off the premises
where it is sold (other than alcoholic liquor taxable under
Section 8-1 of the Liquor Control Act of 1934 beverages, food
consisting of or infused with adult use cannabis, soft drinks,
candy, and food that has been prepared for immediate
consumption)", as further defined in Section 2-10 of the
Retailers' Occupation Tax Act.
For purposes of the tax authorized to be imposed under
subsection (b), "groceries" has the same meaning as "food for
human consumption that is to be consumed off the premises
where it is sold (other than alcoholic liquor taxable under
Section 8-1 of the Liquor Control Act of 1934 beverages, food
consisting of or infused with adult use cannabis, soft drinks,
candy, and food that has been prepared for immediate
consumption)", as further defined in Section 3-10 of the
Service Occupation Tax Act. For purposes of the tax authorized
to be imposed under subsection (b), "groceries" also means
food prepared for immediate consumption and transferred
incident to a sale of service subject to the Service
Occupation Tax Act or the Service Use Tax Act by an entity
licensed under the Hospital Licensing Act, the Nursing Home
Care Act, the Assisted Living and Shared Housing Act, the
ID/DD Community Care Act, the MC/DD Act, the Specialized
Mental Health Rehabilitation Act of 2013, or the Child Care
Act of 1969, or an entity that holds a permit issued pursuant

SB3019 Enrolled - 412 - LRB104 20255 HLH 33706 b
to the Life Care Facilities Act.
(i) This Section may be referred to as the Municipal
Grocery Occupation Tax Law.
(Source: P.A. 103-781, eff. 8-5-24; 104-6, eff. 1-1-26.)
(65 ILCS 5/11-74.3-6)
Sec. 11-74.3-6. Business district revenue and obligations;
business district tax allocation fund.
(a) If the corporate authorities of a municipality have
approved a business district plan, have designated a business
district, and have elected to impose a tax by ordinance
pursuant to subsection (10) or (11) of Section 11-74.3-3, then
each year after the date of the approval of the ordinance but
terminating upon the date all business district project costs
and all obligations paying or reimbursing business district
project costs, if any, have been paid, but in no event later
than the dissolution date, all amounts generated by the
retailers' occupation tax and service occupation tax shall be
collected and the tax shall be enforced by the Department of
Revenue in the same manner as all retailers' occupation taxes
and service occupation taxes imposed in the municipality
imposing the tax and all amounts generated by the hotel
operators' occupation tax shall be collected and the tax shall
be enforced by the municipality in the same manner as all hotel
operators' occupation taxes imposed in the municipality
imposing the tax. The corporate authorities of the

SB3019 Enrolled - 413 - LRB104 20255 HLH 33706 b
municipality shall deposit the proceeds of the taxes imposed
under subsections (10) and (11) of Section 11-74.3-3 into a
special fund of the municipality called the "[Name of]
Business District Tax Allocation Fund" for the purpose of
paying or reimbursing business district project costs and
obligations incurred in the payment of those costs.
(b) The corporate authorities of a municipality that has
designated a business district under this Law may, by
ordinance, impose a Business District Retailers' Occupation
Tax upon all persons engaged in the business of selling
tangible personal property, other than an item of tangible
personal property titled or registered with an agency of this
State's government, at retail in the business district at a
rate not to exceed 1% of the gross receipts from the sales made
in the course of such business, to be imposed only in 0.25%
increments. The tax may not be imposed on tangible personal
property taxed at the rate of 1% under the Retailers'
Occupation Tax Act (or at the 0% rate imposed under this
amendatory Act of the 102nd General Assembly). Beginning
December 1, 2019 and through December 31, 2020, this tax is not
imposed on sales of aviation fuel unless the tax revenue is
expended for airport-related purposes. If the District does
not have an airport-related purpose to which it dedicates
aviation fuel tax revenue, then aviation fuel is excluded from
the tax. Each municipality must comply with the certification
requirements for airport-related purposes under Section 2-22

SB3019 Enrolled - 414 - LRB104 20255 HLH 33706 b
of the Retailers' Occupation Tax Act. For purposes of this
Section, "airport-related purposes" has the meaning ascribed
in Section 6z-20.2 of the State Finance Act. Beginning January
1, 2021, this tax is not imposed on sales of aviation fuel for
so long as the revenue use requirements of 49 U.S.C. 47107(b)
and 49 U.S.C. 47133 are binding on the District.
The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the Department of Revenue. The
certificate of registration that is issued by the Department
to a retailer under the Retailers' Occupation Tax Act shall
permit the retailer to engage in a business that is taxable
under any ordinance or resolution enacted pursuant to this
subsection without registering separately with the Department
under such ordinance or resolution or under this subsection.
The Department of Revenue shall have full power to administer
and enforce this subsection; to collect all taxes and
penalties due under this subsection in the manner hereinafter
provided; and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty
under this subsection. In the administration of, and
compliance with, this subsection, the Department and persons
who are subject to this subsection shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions, and definitions of terms

SB3019 Enrolled - 415 - LRB104 20255 HLH 33706 b
and employ the same modes of procedure, as are prescribed in
Sections 1, 1a through 1o, 2 through 2-65 (in respect to all
provisions therein other than the State rate of tax), 2c
through 2h, 3 (except as to the disposition of taxes and
penalties collected, and except that the retailer's discount
is not allowed for taxes paid on aviation fuel that are subject
to the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k,
5l, 5m, 5n, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13, and 14 of
the Retailers' Occupation Tax Act and all provisions of the
Uniform Penalty and Interest Act, as fully as if those
provisions were set forth herein.
Persons subject to any tax imposed under this subsection
may reimburse themselves for their seller's tax liability
under this subsection by separately stating the tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State taxes that sellers are required
to collect under the Use Tax Act, in accordance with such
bracket schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the business district retailers' occupation

SB3019 Enrolled - 416 - LRB104 20255 HLH 33706 b
tax fund or the Local Government Aviation Trust Fund, as
appropriate.
Except as otherwise provided in this paragraph, the
Department shall immediately pay over to the State Treasurer,
ex officio, as trustee, all taxes, penalties, and interest
collected under this subsection for deposit into the business
district retailers' occupation tax fund. Taxes and penalties
collected on aviation fuel sold on or after December 1, 2019,
shall be immediately paid over by the Department to the State
Treasurer, ex officio, as trustee, for deposit into the Local
Government Aviation Trust Fund. The Department shall only pay
moneys into the Local Government Aviation Trust Fund under
this Section for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
District.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this subsection during the second preceding calendar month for
sales within a STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the

SB3019 Enrolled - 417 - LRB104 20255 HLH 33706 b
disbursement of stated sums of money to named municipalities
from the business district retailers' occupation tax fund, the
municipalities to be those from which retailers have paid
taxes or penalties under this subsection to the Department
during the second preceding calendar month. The amount to be
paid to each municipality shall be the amount (not including
credit memoranda and not including taxes and penalties
collected on aviation fuel sold on or after December 1, 2019)
collected under this subsection during the second preceding
calendar month by the Department plus an amount the Department
determines is necessary to offset any amounts that were
erroneously paid to a different taxing body, and not including
an amount equal to the amount of refunds made during the second
preceding calendar month by the Department, less 2% of that
amount (except the amount collected on aviation fuel sold on
or after December 1, 2019), which shall be deposited into the
Tax Compliance and Administration Fund and shall be used by
the Department, subject to appropriation, to cover the costs
of the Department in administering and enforcing the
provisions of this subsection, on behalf of such municipality,
and not including any amount that the Department determines is
necessary to offset any amounts that were payable to a
different taxing body but were erroneously paid to the
municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund. Within 10 days
after receipt by the Comptroller of the disbursement

SB3019 Enrolled - 418 - LRB104 20255 HLH 33706 b
certification to the municipalities provided for in this
subsection to be given to the Comptroller by the Department,
the Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with the directions contained
in the certification. The proceeds of the tax paid to
municipalities under this subsection shall be deposited into
the Business District Tax Allocation Fund by the municipality.
An ordinance imposing or discontinuing the tax under this
subsection or effecting a change in the rate thereof shall
either (i) be adopted and a certified copy thereof filed with
the Department on or before the first day of April, whereupon
the Department, if all other requirements of this subsection
are met, shall proceed to administer and enforce this
subsection as of the first day of July next following the
adoption and filing; or (ii) be adopted and a certified copy
thereof filed with the Department on or before the first day of
October, whereupon, if all other requirements of this
subsection are met, the Department shall proceed to administer
and enforce this subsection as of the first day of January next
following the adoption and filing.
The Department of Revenue shall not administer or enforce
an ordinance imposing, discontinuing, or changing the rate of
the tax under this subsection, until the municipality also
provides, in the manner prescribed by the Department, the
boundaries of the business district and each address in the
business district in such a way that the Department can

SB3019 Enrolled - 419 - LRB104 20255 HLH 33706 b
determine by its address whether a business is located in the
business district. The municipality must provide this boundary
and address information to the Department on or before April 1
for administration and enforcement of the tax under this
subsection by the Department beginning on the following July 1
and on or before October 1 for administration and enforcement
of the tax under this subsection by the Department beginning
on the following January 1. The Department of Revenue shall
not administer or enforce any change made to the boundaries of
a business district or address change, addition, or deletion
until the municipality reports the boundary change or address
change, addition, or deletion to the Department in the manner
prescribed by the Department. The municipality must provide
this boundary change information or address change, addition,
or deletion to the Department on or before April 1 for
administration and enforcement by the Department of the change
beginning on the following July 1 and on or before October 1
for administration and enforcement by the Department of the
change beginning on the following January 1. The retailers in
the business district shall be responsible for charging the
tax imposed under this subsection. If a retailer is
incorrectly included or excluded from the list of those
required to collect the tax under this subsection, both the
Department of Revenue and the retailer shall be held harmless
if they reasonably relied on information provided by the
municipality.

SB3019 Enrolled - 420 - LRB104 20255 HLH 33706 b
A municipality that imposes the tax under this subsection
must submit to the Department of Revenue any other information
as the Department may require for the administration and
enforcement of the tax.
When certifying the amount of a monthly disbursement to a
municipality under this subsection, the Department shall
increase or decrease the amount by an amount necessary to
offset any misallocation of previous disbursements. The offset
amount shall be the amount erroneously disbursed within the
previous 6 months from the time a misallocation is discovered.
Nothing in this subsection shall be construed to authorize
the municipality to impose a tax upon the privilege of
engaging in any business which under the Constitution of the
United States may not be made the subject of taxation by this
State.
If a tax is imposed under this subsection (b), a tax shall
also be imposed under subsection (c) of this Section.
(c) If a tax has been imposed under subsection (b), a
Business District Service Occupation Tax shall also be imposed
upon all persons engaged, in the business district, in the
business of making sales of service, who, as an incident to
making those sales of service, transfer tangible personal
property within the business district, either in the form of
tangible personal property or in the form of real estate as an
incident to a sale of service. The tax shall be imposed at the
same rate as the tax imposed in subsection (b) and shall not

SB3019 Enrolled - 421 - LRB104 20255 HLH 33706 b
exceed 1% of the selling price of tangible personal property
so transferred within the business district, to be imposed
only in 0.25% increments. The tax may not be imposed on
tangible personal property taxed at the 1% rate under the
Service Occupation Tax Act (or at the 0% rate imposed under
this amendatory Act of the 102nd General Assembly). Beginning
December 1, 2019, this tax is not imposed on sales of aviation
fuel unless the tax revenue is expended for airport-related
purposes. If the District does not have an airport-related
purpose to which it dedicates aviation fuel tax revenue, then
aviation fuel is excluded from the tax. Each municipality must
comply with the certification requirements for airport-related
purposes under Section 2-22 of the Retailers' Occupation Tax
Act. For purposes of this Act, "airport-related purposes" has
the meaning ascribed in Section 6z-20.2 of the State Finance
Act. Beginning January 1, 2021, this tax is not imposed on
sales of aviation fuel for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the District.
The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the Department of Revenue. The
certificate of registration which is issued by the Department
to a retailer under the Retailers' Occupation Tax Act or under
the Service Occupation Tax Act shall permit such registrant to
engage in a business which is taxable under any ordinance or

SB3019 Enrolled - 422 - LRB104 20255 HLH 33706 b
resolution enacted pursuant to this subsection without
registering separately with the Department under such
ordinance or resolution or under this subsection. The
Department of Revenue shall have full power to administer and
enforce this subsection; to collect all taxes and penalties
due under this subsection; to dispose of taxes and penalties
so collected in the manner hereinafter provided; and to
determine all rights to credit memoranda arising on account of
the erroneous payment of tax or penalty under this subsection.
In the administration of, and compliance with this subsection,
the Department and persons who are subject to this subsection
shall have the same rights, remedies, privileges, immunities,
powers and duties, and be subject to the same conditions,
restrictions, limitations, penalties, exclusions, exemptions,
and definitions of terms and employ the same modes of
procedure as are prescribed in Sections 2, 2a through 2d, 3
through 3-50 (in respect to all provisions therein other than
the State rate of tax), 4 (except that the reference to the
State shall be to the business district), 5, 7, 8 (except that
the jurisdiction to which the tax shall be a debt to the extent
indicated in that Section 8 shall be the municipality), 9
(except as to the disposition of taxes and penalties
collected, and except that the returned merchandise credit for
this tax may not be taken against any State tax, and except
that the retailer's discount is not allowed for taxes paid on
aviation fuel that are subject to the revenue use requirements

SB3019 Enrolled - 423 - LRB104 20255 HLH 33706 b
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10, 11, 12 (except
the reference therein to Section 2b of the Retailers'
Occupation Tax Act), 13 (except that any reference to the
State shall mean the municipality), the first paragraph of
Section 15, and Sections 16, 17, 18, 19 and 20 of the Service
Occupation Tax Act and all provisions of the Uniform Penalty
and Interest Act, as fully as if those provisions were set
forth herein.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability hereunder by separately stating the
tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax that
servicemen are authorized to collect under the Service Use Tax
Act, in accordance with such bracket schedules as the
Department may prescribe.
Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in such
notification from the Department. Such refund shall be paid by
the State Treasurer out of the business district retailers'
occupation tax fund or the Local Government Aviation Trust
Fund, as appropriate.
Except as otherwise provided in this paragraph, the

SB3019 Enrolled - 424 - LRB104 20255 HLH 33706 b
Department shall forthwith pay over to the State Treasurer,
ex-officio, as trustee, all taxes, penalties, and interest
collected under this subsection for deposit into the business
district retailers' occupation tax fund. Taxes and penalties
collected on aviation fuel sold on or after December 1, 2019,
shall be immediately paid over by the Department to the State
Treasurer, ex officio, as trustee, for deposit into the Local
Government Aviation Trust Fund. The Department shall only pay
moneys into the Local Government Aviation Trust Fund under
this Section for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
District.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this subsection during the second preceding calendar month for
sales within a STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities
from the business district retailers' occupation tax fund, the
municipalities to be those from which suppliers and servicemen

SB3019 Enrolled - 425 - LRB104 20255 HLH 33706 b
have paid taxes or penalties under this subsection to the
Department during the second preceding calendar month. The
amount to be paid to each municipality shall be the amount (not
including credit memoranda and not including taxes and
penalties collected on aviation fuel sold on or after December
1, 2019) collected under this subsection during the second
preceding calendar month by the Department, less 2% of that
amount (except the amount collected on aviation fuel sold on
or after December 1, 2019), which shall be deposited into the
Tax Compliance and Administration Fund and shall be used by
the Department, subject to appropriation, to cover the costs
of the Department in administering and enforcing the
provisions of this subsection, and not including an amount
equal to the amount of refunds made during the second
preceding calendar month by the Department on behalf of such
municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund. Within 10 days
after receipt, by the Comptroller, of the disbursement
certification to the municipalities, provided for in this
subsection to be given to the Comptroller by the Department,
the Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with the directions contained
in such certification. The proceeds of the tax paid to
municipalities under this subsection shall be deposited into
the Business District Tax Allocation Fund by the municipality.
An ordinance imposing or discontinuing the tax under this

SB3019 Enrolled - 426 - LRB104 20255 HLH 33706 b
subsection or effecting a change in the rate thereof shall
either (i) be adopted and a certified copy thereof filed with
the Department on or before the first day of April, whereupon
the Department, if all other requirements of this subsection
are met, shall proceed to administer and enforce this
subsection as of the first day of July next following the
adoption and filing; or (ii) be adopted and a certified copy
thereof filed with the Department on or before the first day of
October, whereupon, if all other conditions of this subsection
are met, the Department shall proceed to administer and
enforce this subsection as of the first day of January next
following the adoption and filing.
The Department of Revenue shall not administer or enforce
an ordinance imposing, discontinuing, or changing the rate of
the tax under this subsection, until the municipality also
provides, in the manner prescribed by the Department, the
boundaries of the business district in such a way that the
Department can determine by its address whether a business is
located in the business district. The municipality must
provide this boundary and address information to the
Department on or before April 1 for administration and
enforcement of the tax under this subsection by the Department
beginning on the following July 1 and on or before October 1
for administration and enforcement of the tax under this
subsection by the Department beginning on the following
January 1. The Department of Revenue shall not administer or

SB3019 Enrolled - 427 - LRB104 20255 HLH 33706 b
enforce any change made to the boundaries of a business
district or address change, addition, or deletion until the
municipality reports the boundary change or address change,
addition, or deletion to the Department in the manner
prescribed by the Department. The municipality must provide
this boundary change information or address change, addition,
or deletion to the Department on or before April 1 for
administration and enforcement by the Department of the change
beginning on the following July 1 and on or before October 1
for administration and enforcement by the Department of the
change beginning on the following January 1. The retailers in
the business district shall be responsible for charging the
tax imposed under this subsection. If a retailer is
incorrectly included or excluded from the list of those
required to collect the tax under this subsection, both the
Department of Revenue and the retailer shall be held harmless
if they reasonably relied on information provided by the
municipality.
A municipality that imposes the tax under this subsection
must submit to the Department of Revenue any other information
as the Department may require for the administration and
enforcement of the tax.
Nothing in this subsection shall be construed to authorize
the municipality to impose a tax upon the privilege of
engaging in any business which under the Constitution of the
United States may not be made the subject of taxation by the

SB3019 Enrolled - 428 - LRB104 20255 HLH 33706 b
State.
If a tax is imposed under this subsection (c), a tax shall
also be imposed under subsection (b) of this Section.
(c-5) If, on January 1, 2025, a unit of local government
has in effect a tax under this Section, or if, after January 1,
2025, a unit of local government imposes a tax under this
Section, then that tax applies to leases of tangible personal
property in effect, entered into, or renewed on or after that
date in the same manner as the tax under this Section and in
accordance with the changes made by this amendatory Act of the
103rd General Assembly.
(d) By ordinance, a municipality that has designated a
business district under this Law may impose an occupation tax
upon all persons engaged in the business district in the
business of renting, leasing, or letting rooms in a hotel, as
defined in the Hotel Operators' Occupation Tax Act, at a rate
not to exceed 1% of the gross rental receipts from the renting,
leasing, or letting of hotel rooms within the business
district, to be imposed only in 0.25% increments, excluding,
however, from gross rental receipts the proceeds of renting,
leasing, or letting to permanent residents of a hotel, as
defined in the Hotel Operators' Occupation Tax Act, and
proceeds from the tax imposed under subsection (c) of Section
13 of the Metropolitan Pier and Exposition Authority Act.
The tax imposed by the municipality under this subsection
and all civil penalties that may be assessed as an incident to

SB3019 Enrolled - 429 - LRB104 20255 HLH 33706 b
that tax shall be collected and enforced by the municipality
imposing the tax. The municipality shall have full power to
administer and enforce this subsection, to collect all taxes
and penalties due under this subsection, to dispose of taxes
and penalties so collected in the manner provided in this
subsection, and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty
under this subsection. In the administration of and compliance
with this subsection, the municipality and persons who are
subject to this subsection shall have the same rights,
remedies, privileges, immunities, powers, and duties, shall be
subject to the same conditions, restrictions, limitations,
penalties, and definitions of terms, and shall employ the same
modes of procedure as are employed with respect to a tax
adopted by the municipality under Section 8-3-14 of this Code.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
tax liability for that tax by separately stating that tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State taxes imposed under the Hotel
Operators' Occupation Tax Act, and with any other tax.
Nothing in this subsection shall be construed to authorize
a municipality to impose a tax upon the privilege of engaging
in any business which under the Constitution of the United
States may not be made the subject of taxation by this State.
The proceeds of the tax imposed under this subsection

SB3019 Enrolled - 430 - LRB104 20255 HLH 33706 b
shall be deposited into the Business District Tax Allocation
Fund.
(e) Obligations secured by the Business District Tax
Allocation Fund may be issued to provide for the payment or
reimbursement of business district project costs. Those
obligations, when so issued, shall be retired in the manner
provided in the ordinance authorizing the issuance of those
obligations by the receipts of taxes imposed pursuant to
subsections (10) and (11) of Section 11-74.3-3 and by other
revenue designated or pledged by the municipality. A
municipality may in the ordinance pledge, for any period of
time up to and including the dissolution date, all or any part
of the funds in and to be deposited in the Business District
Tax Allocation Fund to the payment of business district
project costs and obligations. Whenever a municipality pledges
all of the funds to the credit of a business district tax
allocation fund to secure obligations issued or to be issued
to pay or reimburse business district project costs, the
municipality may specifically provide that funds remaining to
the credit of such business district tax allocation fund after
the payment of such obligations shall be accounted for
annually and shall be deemed to be "surplus" funds, and such
"surplus" funds shall be expended by the municipality for any
business district project cost as approved in the business
district plan. Whenever a municipality pledges less than all
of the monies to the credit of a business district tax

SB3019 Enrolled - 431 - LRB104 20255 HLH 33706 b
allocation fund to secure obligations issued or to be issued
to pay or reimburse business district project costs, the
municipality shall provide that monies to the credit of the
business district tax allocation fund and not subject to such
pledge or otherwise encumbered or required for payment of
contractual obligations for specific business district project
costs shall be calculated annually and shall be deemed to be
"surplus" funds, and such "surplus" funds shall be expended by
the municipality for any business district project cost as
approved in the business district plan.
No obligation issued pursuant to this Law and secured by a
pledge of all or any portion of any revenues received or to be
received by the municipality from the imposition of taxes
pursuant to subsection (10) of Section 11-74.3-3, shall be
deemed to constitute an economic incentive agreement under
Section 8-11-20, notwithstanding the fact that such pledge
provides for the sharing, rebate, or payment of retailers'
occupation taxes or service occupation taxes imposed pursuant
to subsection (10) of Section 11-74.3-3 and received or to be
received by the municipality from the development or
redevelopment of properties in the business district.
Without limiting the foregoing in this Section, the
municipality may further secure obligations secured by the
business district tax allocation fund with a pledge, for a
period not greater than the term of the obligations and in any
case not longer than the dissolution date, of any part or any

SB3019 Enrolled - 432 - LRB104 20255 HLH 33706 b
combination of the following: (i) net revenues of all or part
of any business district project; (ii) taxes levied or imposed
by the municipality on any or all property in the
municipality, including, specifically, taxes levied or imposed
by the municipality in a special service area pursuant to the
Special Service Area Tax Law; (iii) the full faith and credit
of the municipality; (iv) a mortgage on part or all of the
business district project; or (v) any other taxes or
anticipated receipts that the municipality may lawfully
pledge.
Such obligations may be issued in one or more series, bear
such date or dates, become due at such time or times as therein
provided, but in any case not later than (i) 20 years after the
date of issue or (ii) the dissolution date, whichever is
earlier, bear interest payable at such intervals and at such
rate or rates as set forth therein, except as may be limited by
applicable law, which rate or rates may be fixed or variable,
be in such denominations, be in such form, either coupon,
registered, or book-entry, carry such conversion, registration
and exchange privileges, be subject to defeasance upon such
terms, have such rank or priority, be executed in such manner,
be payable in such medium or payment at such place or places
within or without the State, make provision for a corporate
trustee within or without the State with respect to such
obligations, prescribe the rights, powers, and duties thereof
to be exercised for the benefit of the municipality and the

SB3019 Enrolled - 433 - LRB104 20255 HLH 33706 b
benefit of the owners of such obligations, provide for the
holding in trust, investment, and use of moneys, funds, and
accounts held under an ordinance, provide for assignment of
and direct payment of the moneys to pay such obligations or to
be deposited into such funds or accounts directly to such
trustee, be subject to such terms of redemption with or
without premium, and be sold at such price, all as the
corporate authorities shall determine. No referendum approval
of the electors shall be required as a condition to the
issuance of obligations pursuant to this Law except as
provided in this Section.
In the event the municipality authorizes the issuance of
obligations pursuant to the authority of this Law secured by
the full faith and credit of the municipality, or pledges ad
valorem taxes pursuant to this subsection, which obligations
are other than obligations which may be issued under home rule
powers provided by Section 6 of Article VII of the Illinois
Constitution or which ad valorem taxes are other than ad
valorem taxes which may be pledged under home rule powers
provided by Section 6 of Article VII of the Illinois
Constitution or which are levied in a special service area
pursuant to the Special Service Area Tax Law, the ordinance
authorizing the issuance of those obligations or pledging
those taxes shall be published within 10 days after the
ordinance has been adopted, in a newspaper having a general
circulation within the municipality. The publication of the

SB3019 Enrolled - 434 - LRB104 20255 HLH 33706 b
ordinance shall be accompanied by a notice of (i) the specific
number of voters required to sign a petition requesting the
question of the issuance of the obligations or pledging such
ad valorem taxes to be submitted to the electors; (ii) the time
within which the petition must be filed; and (iii) the date of
the prospective referendum. The municipal clerk shall provide
a petition form to any individual requesting one.
If no petition is filed with the municipal clerk, as
hereinafter provided in this Section, within 21 days after the
publication of the ordinance, the ordinance shall be in
effect. However, if within that 21-day period a petition is
filed with the municipal clerk, signed by electors numbering
not less than 15% of the number of electors voting for the
mayor or president at the last general municipal election,
asking that the question of issuing obligations using full
faith and credit of the municipality as security for the cost
of paying or reimbursing business district project costs, or
of pledging such ad valorem taxes for the payment of those
obligations, or both, be submitted to the electors of the
municipality, the municipality shall not be authorized to
issue obligations of the municipality using the full faith and
credit of the municipality as security or pledging such ad
valorem taxes for the payment of those obligations, or both,
until the proposition has been submitted to and approved by a
majority of the voters voting on the proposition at a
regularly scheduled election. The municipality shall certify

SB3019 Enrolled - 435 - LRB104 20255 HLH 33706 b
the proposition to the proper election authorities for
submission in accordance with the general election law.
The ordinance authorizing the obligations may provide that
the obligations shall contain a recital that they are issued
pursuant to this Law, which recital shall be conclusive
evidence of their validity and of the regularity of their
issuance.
In the event the municipality authorizes issuance of
obligations pursuant to this Law secured by the full faith and
credit of the municipality, the ordinance authorizing the
obligations may provide for the levy and collection of a
direct annual tax upon all taxable property within the
municipality sufficient to pay the principal thereof and
interest thereon as it matures, which levy may be in addition
to and exclusive of the maximum of all other taxes authorized
to be levied by the municipality, which levy, however, shall
be abated to the extent that monies from other sources are
available for payment of the obligations and the municipality
certifies the amount of those monies available to the county
clerk.
A certified copy of the ordinance shall be filed with the
county clerk of each county in which any portion of the
municipality is situated, and shall constitute the authority
for the extension and collection of the taxes to be deposited
in the business district tax allocation fund.
A municipality may also issue its obligations to refund,

SB3019 Enrolled - 436 - LRB104 20255 HLH 33706 b
in whole or in part, obligations theretofore issued by the
municipality under the authority of this Law, whether at or
prior to maturity. However, the last maturity of the refunding
obligations shall not be expressed to mature later than the
dissolution date.
In the event a municipality issues obligations under home
rule powers or other legislative authority, the proceeds of
which are pledged to pay or reimburse business district
project costs, the municipality may, if it has followed the
procedures in conformance with this Law, retire those
obligations from funds in the business district tax allocation
fund in amounts and in such manner as if those obligations had
been issued pursuant to the provisions of this Law.
No obligations issued pursuant to this Law shall be
regarded as indebtedness of the municipality issuing those
obligations or any other taxing district for the purpose of
any limitation imposed by law.
Obligations issued pursuant to this Law shall not be
subject to the provisions of the Bond Authorization Act.
(f) When business district project costs, including,
without limitation, all obligations paying or reimbursing
business district project costs have been paid, any surplus
funds then remaining in the Business District Tax Allocation
Fund shall be distributed to the municipal treasurer for
deposit into the general corporate fund of the municipality.
Upon payment of all business district project costs and

SB3019 Enrolled - 437 - LRB104 20255 HLH 33706 b
retirement of all obligations paying or reimbursing business
district project costs, but in no event more than 23 years
after the date of adoption of the ordinance imposing taxes
pursuant to subsection (10) or (11) of Section 11-74.3-3, the
municipality shall adopt an ordinance immediately rescinding
the taxes imposed pursuant to subsection (10) or (11) of
Section 11-74.3-3.
(Source: P.A. 102-700, eff. 4-19-22; 103-592, eff. 1-1-25.)
Section 70-80. The Civic Center Code is amended by
changing Section 245-12 as follows:
(70 ILCS 200/245-12)
Sec. 245-12. Use and occupation taxes.
(a) The Authority may adopt a resolution that authorizes a
referendum on the question of whether the Authority shall be
authorized to impose a retailers' occupation tax, a service
occupation tax, and a use tax in one-quarter percent
increments at a rate not to exceed 1%. The Authority shall
certify the question to the proper election authorities who
shall submit the question to the voters of the metropolitan
area at the next regularly scheduled election in accordance
with the general election law. The question shall be in
substantially the following form:
"Shall the Salem Civic Center Authority be authorized to
impose a retailers' occupation tax, a service occupation

SB3019 Enrolled - 438 - LRB104 20255 HLH 33706 b
tax, and a use tax at the rate of (rate) for the sole
purpose of obtaining funds for the support, construction,
maintenance, or financing of a facility of the Authority?"
Votes shall be recorded as "yes" or "no".
If a majority of all votes cast on the proposition are in
favor of the proposition, the Authority is authorized to
impose the tax.
(b) The Authority shall impose the retailers' occupation
tax upon all persons engaged in the business of selling
tangible personal property at retail in the metropolitan area,
at the rate approved by referendum, on the gross receipts from
the sales made in the course of such business within the
metropolitan area. Beginning December 1, 2019 and through
December 31, 2020, this tax is not imposed on sales of aviation
fuel unless the tax revenue is expended for airport-related
purposes. If the Authority does not have an airport-related
purpose to which it dedicates aviation fuel tax revenue, then
aviation fuel is excluded from the tax. The Authority must
comply with the certification requirements for airport-related
purposes under Section 2-22 of the Retailers' Occupation Tax
Act. For purposes of this Section, "airport-related purposes"
has the meaning ascribed in Section 6z-20.2 of the State
Finance Act. Beginning January 1, 2021, this tax is not
imposed on sales of aviation fuel for so long as the revenue
use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the Authority.

SB3019 Enrolled - 439 - LRB104 20255 HLH 33706 b
The tax imposed under this Section and all civil penalties
that may be assessed as an incident thereof shall be collected
and enforced by the Department of Revenue. The Department has
full power to administer and enforce this Section; to collect
all taxes and penalties so collected in the manner provided in
this Section; and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty
hereunder. In the administration of, and compliance with, this
Section, the Department and persons who are subject to this
Section shall (i) have the same rights, remedies, privileges,
immunities, powers and duties, (ii) be subject to the same
conditions, restrictions, limitations, penalties, exclusions,
exemptions, and definitions of terms, and (iii) employ the
same modes of procedure as are prescribed in Sections 1, 1a,
1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10
(in respect to all provisions therein other than the State
rate of tax), 2-12, 2-15 through 2-70, 2a, 2b, 2c, 3 (except as
to the disposition of taxes and penalties collected and
provisions related to quarter monthly payments, and except
that the retailer's discount is not allowed for taxes paid on
aviation fuel that are subject to the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c,
5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 5m, 5n, 6, 6a, 6b, 6c, 7, 8, 9,
10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act
and Section 3-7 of the Uniform Penalty and Interest Act, as
fully as if those provisions were set forth in this

SB3019 Enrolled - 440 - LRB104 20255 HLH 33706 b
subsection.
Persons subject to any tax imposed under this subsection
may reimburse themselves for their seller's tax liability by
separately stating the tax as an additional charge, which
charge may be stated in combination, in a single amount, with
State taxes that sellers are required to collect, in
accordance with such bracket schedules as the Department may
prescribe.
Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the tax fund referenced under paragraph (g)
of this Section or the Local Government Aviation Trust Fund,
as appropriate.
If a tax is imposed under this subsection (b), a tax shall
also be imposed at the same rate under subsections (c) and (d)
of this Section.
For the purpose of determining whether a tax authorized
under this Section is applicable, a retail sale, by a producer
of coal or other mineral mined in Illinois, is a sale at retail
at the place where the coal or other mineral mined in Illinois
is extracted from the earth. This paragraph does not apply to
coal or other mineral when it is delivered or shipped by the

SB3019 Enrolled - 441 - LRB104 20255 HLH 33706 b
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the Federal Constitution as a sale in
interstate or foreign commerce.
Nothing in this Section shall be construed to authorize
the Authority to impose a tax upon the privilege of engaging in
any business which under the Constitution of the United States
may not be made the subject of taxation by this State.
(c) If a tax has been imposed under subsection (b), a
service occupation tax shall also be imposed at the same rate
upon all persons engaged, in the metropolitan area, in the
business of making sales of service, who, as an incident to
making those sales of service, transfer tangible personal
property within the metropolitan area as an incident to a sale
of service. The tax imposed under this subsection and all
civil penalties that may be assessed as an incident thereof
shall be collected and enforced by the Department of Revenue.
Beginning December 1, 2019 and through December 31, 2020,
this tax is not imposed on sales of aviation fuel unless the
tax revenue is expended for airport-related purposes. If the
Authority does not have an airport-related purpose to which it
dedicates aviation fuel tax revenue, then aviation fuel is
excluded from the tax. The Authority must comply with the
certification requirements for airport-related purposes under
Section 2-22 of the Retailers' Occupation Tax Act. Beginning
January 1, 2021, this tax is not imposed on sales of aviation
fuel for so long as the revenue use requirements of 49 U.S.C.

SB3019 Enrolled - 442 - LRB104 20255 HLH 33706 b
47107(b) and 49 U.S.C. 47133 are binding on the Authority.
The Department has full power to administer and enforce
this paragraph; to collect all taxes and penalties due
hereunder; to dispose of taxes and penalties so collected in
the manner hereinafter provided; and to determine all rights
to credit memoranda arising on account of the erroneous
payment of tax or penalty hereunder. In the administration of,
and compliance with this paragraph, the Department and persons
who are subject to this paragraph shall (i) have the same
rights, remedies, privileges, immunities, powers, and duties,
(ii) be subject to the same conditions, restrictions,
limitations, penalties, exclusions, exemptions, and
definitions of terms, and (iii) employ the same modes of
procedure as are prescribed in Sections 2 (except that the
reference to State in the definition of supplier maintaining a
place of business in this State shall mean the metropolitan
area), 2a, 2b, 3 through 3-55 (in respect to all provisions
therein other than the State rate of tax), 4 (except that the
reference to the State shall be to the Authority), 5, 7, 8
(except that the jurisdiction to which the tax shall be a debt
to the extent indicated in that Section 8 shall be the
Authority), 9 (except as to the disposition of taxes and
penalties collected, and except that the returned merchandise
credit for this tax may not be taken against any State tax, and
except that the retailer's discount is not allowed for taxes
paid on aviation fuel that are subject to the revenue use

SB3019 Enrolled - 443 - LRB104 20255 HLH 33706 b
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 11,
12 (except the reference therein to Section 2b of the
Retailers' Occupation Tax Act), 13 (except that any reference
to the State shall mean the Authority), 15, 16, 17, 18, 19 and
20 of the Service Occupation Tax Act and Section 3-7 of the
Uniform Penalty and Interest Act, as fully as if those
provisions were set forth herein.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability by separately stating the tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State tax that servicemen are
authorized to collect under the Service Use Tax Act, in
accordance with such bracket schedules as the Department may
prescribe.
Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the tax fund referenced under paragraph (g)
of this Section or the Local Government Aviation Trust Fund,
as appropriate.
Nothing in this paragraph shall be construed to authorize
the Authority to impose a tax upon the privilege of engaging in

SB3019 Enrolled - 444 - LRB104 20255 HLH 33706 b
any business which under the Constitution of the United States
may not be made the subject of taxation by the State.
(c-5) If, on January 1, 2025, a unit of local government
has in effect a tax under this Section, or if, after January 1,
2025, a unit of local government imposes a tax under this
Section, then that tax applies to leases of tangible personal
property in effect, entered into, or renewed on or after that
date in the same manner as the tax under this Section and in
accordance with the changes made by this amendatory Act of the
103rd General Assembly.
(d) If a tax has been imposed under subsection (b), a use
tax shall also be imposed at the same rate upon the privilege
of using, in the metropolitan area, any item of tangible
personal property that is purchased outside the metropolitan
area at retail from a retailer, and that is titled or
registered at a location within the metropolitan area with an
agency of this State's government. "Selling price" is defined
as in the Use Tax Act. The tax shall be collected from persons
whose Illinois address for titling or registration purposes is
given as being in the metropolitan area. The tax shall be
collected by the Department of Revenue for the Authority. The
tax must be paid to the State, or an exemption determination
must be obtained from the Department of Revenue, before the
title or certificate of registration for the property may be
issued. The tax or proof of exemption may be transmitted to the
Department by way of the State agency with which, or the State

SB3019 Enrolled - 445 - LRB104 20255 HLH 33706 b
officer with whom, the tangible personal property must be
titled or registered if the Department and the State agency or
State officer determine that this procedure will expedite the
processing of applications for title or registration.
The Department has full power to administer and enforce
this paragraph; to collect all taxes, penalties and interest
due hereunder; to dispose of taxes, penalties and interest so
collected in the manner hereinafter provided; and to determine
all rights to credit memoranda or refunds arising on account
of the erroneous payment of tax, penalty or interest
hereunder. In the administration of, and compliance with, this
subsection, the Department and persons who are subject to this
paragraph shall (i) have the same rights, remedies,
privileges, immunities, powers, and duties, (ii) be subject to
the same conditions, restrictions, limitations, penalties,
exclusions, exemptions, and definitions of terms, and (iii)
employ the same modes of procedure as are prescribed in
Sections 2 (except the definition of "retailer maintaining a
place of business in this State"), 3, 3-5, 3-10, 3-45, 3-55,
3-65, 3-70, 3-85, 3a, 4, 6, 7, 8 (except that the jurisdiction
to which the tax shall be a debt to the extent indicated in
that Section 8 shall be the Authority), 9 (except provisions
relating to quarter monthly payments), 10, 11, 12, 12a, 12b,
13, 14, 15, 19, 20, 21, and 22 of the Use Tax Act and Section
3-7 of the Uniform Penalty and Interest Act, that are not
inconsistent with this paragraph, as fully as if those

SB3019 Enrolled - 446 - LRB104 20255 HLH 33706 b
provisions were set forth herein.
Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the tax fund referenced under paragraph (g)
of this Section.
(e) A certificate of registration issued by the State
Department of Revenue to a retailer under the Retailers'
Occupation Tax Act or under the Service Occupation Tax Act
shall permit the registrant to engage in a business that is
taxed under the tax imposed under paragraphs (b), (c), or (d)
of this Section and no additional registration shall be
required. A certificate issued under the Use Tax Act or the
Service Use Tax Act shall be applicable with regard to any tax
imposed under paragraph (c) of this Section.
(f) The results of any election authorizing a proposition
to impose a tax under this Section or effecting a change in the
rate of tax shall be certified by the proper election
authorities and filed with the Illinois Department on or
before the first day of April. In addition, an ordinance
imposing, discontinuing, or effecting a change in the rate of
tax under this Section shall be adopted and a certified copy
thereof filed with the Department on or before the first day of

SB3019 Enrolled - 447 - LRB104 20255 HLH 33706 b
April. After proper receipt of such certifications, the
Department shall proceed to administer and enforce this
Section as of the first day of July next following such
adoption and filing.
(g) Except as otherwise provided, the Department of
Revenue shall, upon collecting any taxes and penalties as
provided in this Section, pay the taxes and penalties over to
the State Treasurer as trustee for the Authority. The taxes
and penalties shall be held in a trust fund outside the State
Treasury. Taxes and penalties collected on aviation fuel sold
on or after December 1, 2019 and through December 31, 2020,
shall be immediately paid over by the Department to the State
Treasurer, ex officio, as trustee, for deposit into the Local
Government Aviation Trust Fund. The Department shall only pay
moneys into the Local Government Aviation Trust Fund under
this Section for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
District. On or before the 25th day of each calendar month, the
Department of Revenue shall prepare and certify to the
Comptroller of the State of Illinois the amount to be paid to
the Authority, which shall be the balance in the fund, less any
amount determined by the Department to be necessary for the
payment of refunds and not including taxes and penalties
collected on aviation fuel sold on or after December 1, 2019.
Within 10 days after receipt by the Comptroller of the
certification of the amount to be paid to the Authority, the

SB3019 Enrolled - 448 - LRB104 20255 HLH 33706 b
Comptroller shall cause an order to be drawn for payment for
the amount in accordance with the directions contained in the
certification. Amounts received from the tax imposed under
this Section shall be used only for the support, construction,
maintenance, or financing of a facility of the Authority.
(h) When certifying the amount of a monthly disbursement
to the Authority under this Section, the Department shall
increase or decrease the amounts by an amount necessary to
offset any miscalculation of previous disbursements. The
offset amount shall be the amount erroneously disbursed within
the previous 6 months from the time a miscalculation is
discovered.
(i) This Section may be cited as the Salem Civic Center Use
and Occupation Tax Law.
(Source: P.A. 103-592, eff. 1-1-25.)
Section 70-85. The Flood Prevention District Act is
amended by changing Section 25 as follows:
(70 ILCS 750/25)
Sec. 25. Flood prevention retailers' and service
occupation taxes.
(a) If the Board of Commissioners of a flood prevention
district determines that an emergency situation exists
regarding levee repair or flood prevention, and upon an
ordinance confirming the determination adopted by the

SB3019 Enrolled - 449 - LRB104 20255 HLH 33706 b
affirmative vote of a majority of the members of the county
board of the county in which the district is situated, the
county may impose a flood prevention retailers' occupation tax
upon all persons engaged in the business of selling tangible
personal property at retail within the territory of the
district to provide revenue to pay the costs of providing
emergency levee repair and flood prevention and to secure the
payment of bonds, notes, and other evidences of indebtedness
issued under this Act for a period not to exceed 25 years or as
required to repay the bonds, notes, and other evidences of
indebtedness issued under this Act. The tax rate shall be
0.25% of the gross receipts from all taxable sales made in the
course of that business. Beginning December 1, 2019 and
through December 31, 2020, this tax is not imposed on sales of
aviation fuel unless the tax revenue is expended for
airport-related purposes. If the District does not have an
airport-related purpose to which it dedicates aviation fuel
tax revenue, then aviation fuel is excluded from the tax. The
County must comply with the certification requirements for
airport-related purposes under Section 2-22 of the Retailers'
Occupation Tax Act. The tax imposed under this Section and all
civil penalties that may be assessed as an incident thereof
shall be collected and enforced by the State Department of
Revenue. The Department shall have full power to administer
and enforce this Section; to collect all taxes and penalties
so collected in the manner hereinafter provided; and to

SB3019 Enrolled - 450 - LRB104 20255 HLH 33706 b
determine all rights to credit memoranda arising on account of
the erroneous payment of tax or penalty hereunder.
For purposes of this Act, "airport-related purposes" has
the meaning ascribed in Section 6z-20.2 of the State Finance
Act. Beginning January 1, 2021, this tax is not imposed on
sales of aviation fuel for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the District.
In the administration of and compliance with this
subsection, the Department and persons who are subject to this
subsection (i) have the same rights, remedies, privileges,
immunities, powers, and duties, (ii) are subject to the same
conditions, restrictions, limitations, penalties, and
definitions of terms, and (iii) shall employ the same modes of
procedure as are set forth in Sections 1 through 1o, 2 through
2-70 (in respect to all provisions contained in those Sections
other than the State rate of tax), 2a through 2h, 3 (except as
to the disposition of taxes and penalties collected, and
except that the retailer's discount is not allowed for taxes
paid on aviation fuel that are subject to the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5,
5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 5m, 5n, 6, 6a,
6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers'
Occupation Tax Act and all provisions of the Uniform Penalty
and Interest Act as if those provisions were set forth in this
subsection.

SB3019 Enrolled - 451 - LRB104 20255 HLH 33706 b
Persons subject to any tax imposed under this Section may
reimburse themselves for their seller's tax liability
hereunder by separately stating the tax as an additional
charge, which charge may be stated in combination in a single
amount with State taxes that sellers are required to collect
under the Use Tax Act, under any bracket schedules the
Department may prescribe.
If a tax is imposed under this subsection (a), a tax shall
also be imposed under subsection (b) of this Section.
(b) If a tax has been imposed under subsection (a), a flood
prevention service occupation tax shall also be imposed upon
all persons engaged within the territory of the district in
the business of making sales of service, who, as an incident to
making the sales of service, transfer tangible personal
property, either in the form of tangible personal property or
in the form of real estate as an incident to a sale of service
to provide revenue to pay the costs of providing emergency
levee repair and flood prevention and to secure the payment of
bonds, notes, and other evidences of indebtedness issued under
this Act for a period not to exceed 25 years or as required to
repay the bonds, notes, and other evidences of indebtedness.
The tax rate shall be 0.25% of the selling price of all
tangible personal property transferred. Beginning December 1,
2019 and through December 31, 2020, this tax is not imposed on
sales of aviation fuel unless the tax revenue is expended for
airport-related purposes. If the District does not have an

SB3019 Enrolled - 452 - LRB104 20255 HLH 33706 b
airport-related purpose to which it dedicates aviation fuel
tax revenue, then aviation fuel is excluded from the tax. The
County must comply with the certification requirements for
airport-related purposes under Section 2-22 of the Retailers'
Occupation Tax Act. For purposes of this Act, "airport-related
purposes" has the meaning ascribed in Section 6z-20.2 of the
State Finance Act. Beginning January 1, 2021, this tax is not
imposed on sales of aviation fuel for so long as the revenue
use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the District.
The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the State Department of Revenue. The
Department shall have full power to administer and enforce
this subsection; to collect all taxes and penalties due
hereunder; to dispose of taxes and penalties collected in the
manner hereinafter provided; and to determine all rights to
credit memoranda arising on account of the erroneous payment
of tax or penalty hereunder.
In the administration of and compliance with this
subsection, the Department and persons who are subject to this
subsection shall (i) have the same rights, remedies,
privileges, immunities, powers, and duties, (ii) be subject to
the same conditions, restrictions, limitations, penalties, and
definitions of terms, and (iii) employ the same modes of
procedure as are set forth in Sections 2 (except that the

SB3019 Enrolled - 453 - LRB104 20255 HLH 33706 b
reference to State in the definition of supplier maintaining a
place of business in this State means the district), 2a
through 2d, 3 through 3-50 (in respect to all provisions
contained in those Sections other than the State rate of tax),
4 (except that the reference to the State shall be to the
district), 5, 7, 8 (except that the jurisdiction to which the
tax is a debt to the extent indicated in that Section 8 is the
district), 9 (except as to the disposition of taxes and
penalties collected, and except that the retailer's discount
is not allowed for taxes paid on aviation fuel that are subject
to the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133), 10, 11, 12 (except the reference therein to
Section 2b of the Retailers' Occupation Tax Act), 13 (except
that any reference to the State means the district), Section
15, 16, 17, 18, 19, and 20 of the Service Occupation Tax Act
and all provisions of the Uniform Penalty and Interest Act, as
fully as if those provisions were set forth herein.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability hereunder by separately stating the
tax as an additional charge, that charge may be stated in
combination in a single amount with State tax that servicemen
are authorized to collect under the Service Use Tax Act, under
any bracket schedules the Department may prescribe.
(c) The taxes imposed in subsections (a) and (b) may not be
imposed on personal property titled or registered with an

SB3019 Enrolled - 454 - LRB104 20255 HLH 33706 b
agency of the State or on personal property taxed at the 1%
rate under the Retailers' Occupation Tax Act and the Service
Occupation Tax Act (or at the 0% rate imposed under this
amendatory Act of the 102nd General Assembly).
(c-5) If, on January 1, 2025, a unit of local government
has in effect a tax under this Section, or if, after January 1,
2025, a unit of local government imposes a tax under this
Section, then that tax applies to leases of tangible personal
property in effect, entered into, or renewed on or after that
date in the same manner as the tax under this Section and in
accordance with the changes made by this amendatory Act of the
103rd General Assembly.
(d) Nothing in this Section shall be construed to
authorize the district to impose a tax upon the privilege of
engaging in any business that under the Constitution of the
United States may not be made the subject of taxation by the
State.
(e) The certificate of registration that is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act or a serviceman under the Service Occupation Tax Act
permits the retailer or serviceman to engage in a business
that is taxable without registering separately with the
Department under an ordinance or resolution under this
Section.
(f) Except as otherwise provided, the Department shall
immediately pay over to the State Treasurer, ex officio, as

SB3019 Enrolled - 455 - LRB104 20255 HLH 33706 b
trustee, all taxes and penalties collected under this Section
to be deposited into the Flood Prevention Occupation Tax Fund,
which shall be an unappropriated trust fund held outside the
State treasury. Taxes and penalties collected on aviation fuel
sold on or after December 1, 2019 and through December 31,
2020, shall be immediately paid over by the Department to the
State Treasurer, ex officio, as trustee, for deposit into the
Local Government Aviation Trust Fund. The Department shall
only pay moneys into the Local Government Aviation Trust Fund
under this Act for so long as the revenue use requirements of
49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
District.
On or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to the counties from
which retailers or servicemen have paid taxes or penalties to
the Department during the second preceding calendar month. The
amount to be paid to each county is equal to the amount (not
including credit memoranda and not including taxes and
penalties collected on aviation fuel sold on or after December
1, 2019 and through December 31, 2020) collected from the
county under this Section during the second preceding calendar
month by the Department, (i) less 2% of that amount (except the
amount collected on aviation fuel sold on or after December 1,
2019 and through December 31, 2020), which shall be deposited
into the Tax Compliance and Administration Fund and shall be

SB3019 Enrolled - 456 - LRB104 20255 HLH 33706 b
used by the Department in administering and enforcing the
provisions of this Section on behalf of the county, (ii) plus
an amount that the Department determines is necessary to
offset any amounts that were erroneously paid to a different
taxing body; (iii) less an amount equal to the amount of
refunds made during the second preceding calendar month by the
Department on behalf of the county; and (iv) less any amount
that the Department determines is necessary to offset any
amounts that were payable to a different taxing body but were
erroneously paid to the county. When certifying the amount of
a monthly disbursement to a county under this Section, the
Department shall increase or decrease the amounts by an amount
necessary to offset any miscalculation of previous
disbursements within the previous 6 months from the time a
miscalculation is discovered.
Within 10 days after receipt by the Comptroller from the
Department of the disbursement certification to the counties
provided for in this Section, the Comptroller shall cause the
orders to be drawn for the respective amounts in accordance
with directions contained in the certification.
If the Department determines that a refund should be made
under this Section to a claimant instead of issuing a credit
memorandum, then the Department shall notify the Comptroller,
who shall cause the order to be drawn for the amount specified
and to the person named in the notification from the
Department. The refund shall be paid by the Treasurer out of

SB3019 Enrolled - 457 - LRB104 20255 HLH 33706 b
the Flood Prevention Occupation Tax Fund or the Local
Government Aviation Trust Fund, as appropriate.
(g) If a county imposes a tax under this Section, then the
county board shall, by ordinance, discontinue the tax upon the
payment of all indebtedness of the flood prevention district.
The tax shall not be discontinued until all indebtedness of
the District has been paid.
(h) Any ordinance imposing the tax under this Section, or
any ordinance that discontinues the tax, must be certified by
the county clerk and filed with the Illinois Department of
Revenue either (i) on or before the first day of April,
whereupon the Department shall proceed to administer and
enforce the tax or change in the rate as of the first day of
July next following the filing; or (ii) on or before the first
day of October, whereupon the Department shall proceed to
administer and enforce the tax or change in the rate as of the
first day of January next following the filing.
(j) County Flood Prevention Occupation Tax Fund. All
proceeds received by a county from a tax distribution under
this Section must be maintained in a special fund known as the
[name of county] flood prevention occupation tax fund. The
county shall, at the direction of the flood prevention
district, use moneys in the fund to pay the costs of providing
emergency levee repair and flood prevention and to pay bonds,
notes, and other evidences of indebtedness issued under this
Act.

SB3019 Enrolled - 458 - LRB104 20255 HLH 33706 b
(k) This Section may be cited as the Flood Prevention
Occupation Tax Law.
(Source: P.A. 102-700, eff. 4-19-22; 103-592, eff. 1-1-25.)
Section 70-90. The Metro-East Park and Recreation District
Act is amended by changing Section 30 as follows:
(70 ILCS 1605/30)
Sec. 30. Taxes.
(a) The board shall impose a tax upon all persons engaged
in the business of selling tangible personal property, other
than personal property titled or registered with an agency of
this State's government, at retail in the District on the
gross receipts from the sales made in the course of business.
This tax shall be imposed only at the rate of one-tenth of one
per cent.
This additional tax may not be imposed on tangible
personal property taxed at the 1% rate under the Retailers'
Occupation Tax Act (or at the 0% rate imposed under this
amendatory Act of the 102nd General Assembly). Beginning
December 1, 2019 and through December 31, 2020, this tax is not
imposed on sales of aviation fuel unless the tax revenue is
expended for airport-related purposes. If the District does
not have an airport-related purpose to which it dedicates
aviation fuel tax revenue, then aviation fuel shall be
excluded from tax. The board must comply with the

SB3019 Enrolled - 459 - LRB104 20255 HLH 33706 b
certification requirements for airport-related purposes under
Section 2-22 of the Retailers' Occupation Tax Act. For
purposes of this Act, "airport-related purposes" has the
meaning ascribed in Section 6z-20.2 of the State Finance Act.
Beginning January 1, 2021, this tax is not imposed on sales of
aviation fuel for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
District. The tax imposed by the Board under this Section and
all civil penalties that may be assessed as an incident of the
tax shall be collected and enforced by the Department of
Revenue. The certificate of registration that is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act shall permit the retailer to engage in a business that is
taxable without registering separately with the Department
under an ordinance or resolution under this Section. The
Department has full power to administer and enforce this
Section, to collect all taxes and penalties due under this
Section, to dispose of taxes and penalties so collected in the
manner provided in this Section, and to determine all rights
to credit memoranda arising on account of the erroneous
payment of a tax or penalty under this Section. In the
administration of and compliance with this Section, the
Department and persons who are subject to this Section shall
(i) have the same rights, remedies, privileges, immunities,
powers, and duties, (ii) be subject to the same conditions,
restrictions, limitations, penalties, and definitions of

SB3019 Enrolled - 460 - LRB104 20255 HLH 33706 b
terms, and (iii) employ the same modes of procedure as are
prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m,
1n, 2, 2-5, 2-5.5, 2-10 (in respect to all provisions
contained in those Sections other than the State rate of tax),
2-12, 2-15 through 2-70, 2a, 2b, 2c, 3 (except provisions
relating to transaction returns and quarter monthly payments,
and except that the retailer's discount is not allowed for
taxes paid on aviation fuel that are subject to the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5,
5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 5m, 5n, 6, 6a,
6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers'
Occupation Tax Act and the Uniform Penalty and Interest Act as
if those provisions were set forth in this Section.
Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
sellers' tax liability by separately stating the tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State tax which sellers are required
to collect under the Use Tax Act, pursuant to such bracketed
schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State

SB3019 Enrolled - 461 - LRB104 20255 HLH 33706 b
Treasurer out of the State Metro-East Park and Recreation
District Fund or the Local Government Aviation Trust Fund, as
appropriate.
(b) If a tax has been imposed under subsection (a), a
service occupation tax shall also be imposed at the same rate
upon all persons engaged, in the District, in the business of
making sales of service, at the same rate of tax imposed under
subsection (a), on the selling price of all who, as an incident
to making those sales of service, transfer tangible personal
property transferred by the serviceman within the District as
an incident to a sale of service. This tax may not be imposed
on tangible personal property taxed at the 1% rate under the
Service Occupation Tax Act (or at the 0% rate imposed under
this amendatory Act of the 102nd General Assembly). Beginning
December 1, 2019 and through December 31, 2020, this tax may
not be imposed on sales of aviation fuel unless the tax revenue
is expended for airport-related purposes. If the District does
not have an airport-related purpose to which it dedicates
aviation fuel tax revenue, then aviation fuel shall be
excluded from tax. The board must comply with the
certification requirements for airport-related purposes under
Section 2-22 of the Retailers' Occupation Tax Act. For
purposes of this Act, "airport-related purposes" has the
meaning ascribed in Section 6z-20.2 of the State Finance Act.
Beginning January 1, 2021, this tax is not imposed on sales of
aviation fuel for so long as the revenue use requirements of 49

SB3019 Enrolled - 462 - LRB104 20255 HLH 33706 b
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
District. The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the Department of Revenue. The
Department has full power to administer and enforce this
subsection; to collect all taxes and penalties due hereunder;
to dispose of taxes and penalties so collected in the manner
hereinafter provided; and to determine all rights to credit
memoranda arising on account of the erroneous payment of tax
or penalty hereunder. In the administration of, and compliance
with this subsection, the Department and persons who are
subject to this paragraph shall (i) have the same rights,
remedies, privileges, immunities, powers, and duties, (ii) be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions, and definitions of terms,
and (iii) employ the same modes of procedure as are prescribed
in Sections 2 (except that the reference to State in the
definition of supplier maintaining a place of business in this
State shall mean the District), 2a, 2b, 2c, 3 through 3-50 (in
respect to all provisions therein other than the State rate of
tax), 4 (except that the reference to the State shall be to the
District), 5, 7, 8 (except that the jurisdiction to which the
tax shall be a debt to the extent indicated in that Section 8
shall be the District), 9 (except as to the disposition of
taxes and penalties collected, and except that the retailer's
discount is not allowed for taxes paid on aviation fuel that

SB3019 Enrolled - 463 - LRB104 20255 HLH 33706 b
are subject to the revenue use requirements of 49 U.S.C.
47107(b) and 49 U.S.C. 47133), 10, 11, 12 (except the
reference therein to Section 2b of the Retailers' Occupation
Tax Act), 13 (except that any reference to the State shall mean
the District), Sections 15, 16, 17, 18, 19 and 20 of the
Service Occupation Tax Act and the Uniform Penalty and
Interest Act, as fully as if those provisions were set forth
herein.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability by separately stating the tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State tax that servicemen are
authorized to collect under the Service Use Tax Act, in
accordance with such bracket schedules as the Department may
prescribe.
Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the State Metro-East Park and Recreation
District Fund or the Local Government Aviation Trust Fund, as
appropriate.
Nothing in this subsection shall be construed to authorize

SB3019 Enrolled - 464 - LRB104 20255 HLH 33706 b
the board to impose a tax upon the privilege of engaging in any
business which under the Constitution of the United States may
not be made the subject of taxation by the State.
(b-5) If, on January 1, 2025, a unit of local government
has in effect a tax under this Section, or if, after January 1,
2025, a unit of local government imposes a tax under this
Section, then that tax applies to leases of tangible personal
property in effect, entered into, or renewed on or after that
date in the same manner as the tax under this Section and in
accordance with the changes made by this amendatory Act of the
103rd General Assembly.
(c) Except as otherwise provided in this paragraph, the
Department shall immediately pay over to the State Treasurer,
ex officio, as trustee, all taxes and penalties collected
under this Section to be deposited into the State Metro-East
Park and Recreation District Fund, which shall be an
unappropriated trust fund held outside of the State treasury.
Taxes and penalties collected on aviation fuel sold on or
after December 1, 2019 and through December 31, 2020, shall be
immediately paid over by the Department to the State
Treasurer, ex officio, as trustee, for deposit into the Local
Government Aviation Trust Fund. The Department shall only pay
moneys into the Local Government Aviation Trust Fund under
this Act for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
District.

SB3019 Enrolled - 465 - LRB104 20255 HLH 33706 b
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for
sales within a STAR bond district. The Department shall make
this certification only if the Metro East Park and Recreation
District imposes a tax on real property as provided in the
definition of "local sales taxes" under the Innovation
Development and Economy Act.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money pursuant to Section 35 of
this Act to the District from which retailers have paid taxes
or penalties to the Department during the second preceding
calendar month. The amount to be paid to the District shall be
the amount (not including credit memoranda and not including
taxes and penalties collected on aviation fuel sold on or
after December 1, 2019 and through December 31, 2020)
collected under this Section during the second preceding
calendar month by the Department plus an amount the Department
determines is necessary to offset any amounts that were
erroneously paid to a different taxing body, and not including

SB3019 Enrolled - 466 - LRB104 20255 HLH 33706 b
(i) an amount equal to the amount of refunds made during the
second preceding calendar month by the Department on behalf of
the District, (ii) any amount that the Department determines
is necessary to offset any amounts that were payable to a
different taxing body but were erroneously paid to the
District, (iii) any amounts that are transferred to the STAR
Bonds Revenue Fund, and (iv) 1.5% of the remainder, which the
Department shall transfer into the Tax Compliance and
Administration Fund. The Department, at the time of each
monthly disbursement to the District, shall prepare and
certify to the State Comptroller the amount to be transferred
into the Tax Compliance and Administration Fund under this
subsection. Within 10 days after receipt by the Comptroller of
the disbursement certification to the District and the Tax
Compliance and Administration Fund provided for in this
Section to be given to the Comptroller by the Department, the
Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with directions contained in
the certification.
(d) For the purpose of determining whether a tax
authorized under this Section is applicable, a retail sale by
a producer of coal or another mineral mined in Illinois is a
sale at retail at the place where the coal or other mineral
mined in Illinois is extracted from the earth. This paragraph
does not apply to coal or another mineral when it is delivered
or shipped by the seller to the purchaser at a point outside

SB3019 Enrolled - 467 - LRB104 20255 HLH 33706 b
Illinois so that the sale is exempt under the United States
Constitution as a sale in interstate or foreign commerce.
(e) Nothing in this Section shall be construed to
authorize the board to impose a tax upon the privilege of
engaging in any business that under the Constitution of the
United States may not be made the subject of taxation by this
State.
(f) An ordinance imposing a tax under this Section or an
ordinance extending the imposition of a tax to an additional
county or counties shall be certified by the board and filed
with the Department of Revenue either (i) on or before the
first day of April, whereupon the Department shall proceed to
administer and enforce the tax as of the first day of July next
following the filing; or (ii) on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce the tax as of the first day of January next
following the filing.
(g) When certifying the amount of a monthly disbursement
to the District under this Section, the Department shall
increase or decrease the amounts by an amount necessary to
offset any misallocation of previous disbursements. The offset
amount shall be the amount erroneously disbursed within the
previous 6 months from the time a misallocation is discovered.
(Source: P.A. 102-700, eff. 4-19-22; 103-592, eff. 1-1-25.)
Section 70-95. The Local Mass Transit District Act is

SB3019 Enrolled - 468 - LRB104 20255 HLH 33706 b
amended by changing Section 5.01 as follows:
(70 ILCS 3610/5.01) (from Ch. 111 2/3, par. 355.01)
Sec. 5.01. Metro East Mass Transit District; use and
occupation taxes.
(a) The Board of Trustees of any Metro East Mass Transit
District may, by ordinance adopted with the concurrence of
two-thirds of the then trustees, impose throughout the
District any or all of the taxes and fees provided in this
Section. Except as otherwise provided, all taxes and fees
imposed under this Section shall be used only for public mass
transportation systems, and the amount used to provide mass
transit service to unserved areas of the District shall be in
the same proportion to the total proceeds as the number of
persons residing in the unserved areas is to the total
population of the District. Except as otherwise provided in
this Act, taxes imposed under this Section and civil penalties
imposed incident thereto shall be collected and enforced by
the State Department of Revenue. The Department shall have the
power to administer and enforce the taxes and to determine all
rights for refunds for erroneous payments of the taxes.
(b) The Board may impose a Metro East Mass Transit
District Retailers' Occupation Tax upon all persons engaged in
the business of selling tangible personal property at retail
in the district at a rate of 1/4 of 1%, or as authorized under
subsection (d-5) of this Section, of the gross receipts from

SB3019 Enrolled - 469 - LRB104 20255 HLH 33706 b
the sales made in the course of such business within the
district, including sales of food for human consumption that
is to be consumed off the premises where it is sold (other than
alcoholic liquor taxable under Section 8-1 of the Liquor
Control Act of 1934, beverages, food consisting of or infused
with adult use cannabis, soft drinks, candy, and food that has
been prepared for immediate consumption), except that the rate
of tax imposed under this Section on sales of aviation fuel on
or after December 1, 2019 shall be 0.25% in Madison County
unless the Metro-East Mass Transit District in Madison County
has an "airport-related purpose" and any additional amount
authorized under subsection (d-5) is expended for
airport-related purposes. If there is no airport-related
purpose to which aviation fuel tax revenue is dedicated, then
aviation fuel is excluded from any additional amount
authorized under subsection (d-5). The rate in St. Clair
County shall be 0.25% unless the Metro-East Mass Transit
District in St. Clair County has an "airport-related purpose"
and the additional 0.50% of the 0.75% tax on aviation fuel
imposed in that County is expended for airport-related
purposes. If there is no airport-related purpose to which
aviation fuel tax revenue is dedicated, then aviation fuel is
excluded from the additional 0.50% of the 0.75% tax.
The Board must comply with the certification requirements
for airport-related purposes under Section 2-22 of the
Retailers' Occupation Tax Act. For purposes of this Section,

SB3019 Enrolled - 470 - LRB104 20255 HLH 33706 b
"airport-related purposes" has the meaning ascribed in Section
6z-20.2 of the State Finance Act. This exclusion for aviation
fuel only applies for so long as the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
District.
The tax imposed under this Section and all civil penalties
that may be assessed as an incident thereof shall be collected
and enforced by the State Department of Revenue. The
Department shall have full power to administer and enforce
this Section; to collect all taxes and penalties so collected
in the manner hereinafter provided; and to determine all
rights to credit memoranda arising on account of the erroneous
payment of tax or penalty hereunder. In the administration of,
and compliance with, this Section, the Department and persons
who are subject to this Section shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions and definitions of terms and
employ the same modes of procedure, as are prescribed in
Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65
(in respect to all provisions therein other than the State
rate of tax and other than the exemption for food for human
consumption that is to be consumed off the premises where it is
sold (other than alcoholic liquor taxable under Section 8-1 of
the Liquor Control Act of 1934, beverages, food consisting of
or infused with adult use cannabis, soft drinks, candy, and

SB3019 Enrolled - 471 - LRB104 20255 HLH 33706 b
food that has been prepared for immediate consumption), which
is taxed at the rate as provided in this subsection), 2c, 3
(except as to the disposition of taxes and penalties
collected, and except that the retailer's discount is not
allowed for taxes paid on aviation fuel that are subject to the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l,
5m, 5n, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12, 13, and 14 of
the Retailers' Occupation Tax Act and Section 3-7 of the
Uniform Penalty and Interest Act, as fully as if those
provisions were set forth herein.
Persons subject to any tax imposed under the Section may
reimburse themselves for their seller's tax liability
hereunder by separately stating the tax as an additional
charge, which charge may be stated in combination, in a single
amount, with State taxes that sellers are required to collect
under the Use Tax Act, in accordance with such bracket
schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Metro East Mass Transit District tax fund
established under paragraph (h) of this Section or the Local

SB3019 Enrolled - 472 - LRB104 20255 HLH 33706 b
Government Aviation Trust Fund, as appropriate.
If a tax is imposed under this subsection (b), a tax shall
also be imposed under subsections (c) and (d) of this Section.
For the purpose of determining whether a tax authorized
under this Section is applicable, a retail sale, by a producer
of coal or other mineral mined in Illinois, is a sale at retail
at the place where the coal or other mineral mined in Illinois
is extracted from the earth. This paragraph does not apply to
coal or other mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the Federal Constitution as a sale in
interstate or foreign commerce.
No tax shall be imposed or collected under this subsection
on the sale of a motor vehicle in this State to a resident of
another state if that motor vehicle will not be titled in this
State.
Nothing in this Section shall be construed to authorize
the Metro East Mass Transit District to impose a tax upon the
privilege of engaging in any business which under the
Constitution of the United States may not be made the subject
of taxation by this State.
(c) If a tax has been imposed under subsection (b), a Metro
East Mass Transit District Service Occupation Tax shall also
be imposed upon all persons engaged, in the district, in the
business of making sales of service, who, as an incident to
making those sales of service, transfer tangible personal

SB3019 Enrolled - 473 - LRB104 20255 HLH 33706 b
property within the District, either in the form of tangible
personal property or in the form of real estate as an incident
to a sale of service. The tax rate shall be (1) 1/4%, or as
authorized under subsection (d-5) of this Section, of the
selling price of tangible personal property so transferred
within the district, including food for human consumption that
is to be consumed off the premises where it is sold (other than
alcoholic liquor taxable under Section 8-1 of the Liquor
Control Act of 1934, beverages, food consisting of or infused
with adult use cannabis, soft drinks, candy, and food that has
been prepared for immediate consumption); and (2) 1/4%, or as
authorized under subsection (d-5) of this Section, of the
serviceman's cost price of food prepared for immediate
consumption and transferred incident to a sale of service
subject to the service occupation tax by an entity that is
licensed under the Hospital Licensing Act, the Nursing Home
Care Act, the Assisted Living and Shared Housing Act, the
Specialized Mental Health Rehabilitation Act of 2013, the
ID/DD Community Care Act, or the MC/DD Act, or the Child Care
Act of 1969, or an entity that holds a permit issued pursuant
to the Life Care Facilities Act. However, the rate of tax
imposed in these Counties under this Section on sales of
aviation fuel on or after December 1, 2019 shall be 0.25% in
Madison County unless the Metro-East Mass Transit District in
Madison County has an "airport-related purpose" and any
additional amount authorized under subsection (d-5) is

SB3019 Enrolled - 474 - LRB104 20255 HLH 33706 b
expended for airport-related purposes. If there is no
airport-related purpose to which aviation fuel tax revenue is
dedicated, then aviation fuel is excluded from any additional
amount authorized under subsection (d-5). The rate in St.
Clair County shall be 0.25% unless the Metro-East Mass Transit
District in St. Clair County has an "airport-related purpose"
and the additional 0.50% of the 0.75% tax on aviation fuel is
expended for airport-related purposes. If there is no
airport-related purpose to which aviation fuel tax revenue is
dedicated, then aviation fuel is excluded from the additional
0.50% of the 0.75% tax.
The Board must comply with the certification requirements
for airport-related purposes under Section 2-22 of the
Retailers' Occupation Tax Act. For purposes of this Section,
"airport-related purposes" has the meaning ascribed in Section
6z-20.2 of the State Finance Act. This exclusion for aviation
fuel only applies for so long as the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
District.
The tax imposed under this paragraph and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the State Department of Revenue. The
Department shall have full power to administer and enforce
this paragraph; to collect all taxes and penalties due
hereunder; to dispose of taxes and penalties so collected in
the manner hereinafter provided; and to determine all rights

SB3019 Enrolled - 475 - LRB104 20255 HLH 33706 b
to credit memoranda arising on account of the erroneous
payment of tax or penalty hereunder. In the administration of,
and compliance with this paragraph, the Department and persons
who are subject to this paragraph shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions and definitions of terms and
employ the same modes of procedure as are prescribed in
Sections 1a-1, 2 (except that the reference to State in the
definition of supplier maintaining a place of business in this
State shall mean the Authority), 2a, 3 through 3-50 (in
respect to all provisions therein other than (i) the State
rate of tax; (ii) the exemption for food for human consumption
that is to be consumed off the premises where it is sold (other
than alcoholic liquor taxable under Section 8-1 of the Liquor
Control Act of 1934, beverages, food consisting of or infused
with adult use cannabis, soft drinks, candy, and food that has
been prepared for immediate consumption), which is taxed at
the rate as provided in this subsection; and (iii) the
exemption for food prepared for immediate consumption and
transferred incident to a sale of service subject to the
service occupation tax by an entity that is licensed under the
Hospital Licensing Act, the Nursing Home Care Act, the
Assisted Living and Shared Housing Act, the Specialized Mental
Health Rehabilitation Act of 2013, the ID/DD Community Care
Act, or the MC/DD Act, or the Child Care Act of 1969, or an

SB3019 Enrolled - 476 - LRB104 20255 HLH 33706 b
entity that holds a permit issued pursuant to the Life Care
Facilities Act, which is taxed at the rate as provided in this
subsection), 4 (except that the reference to the State shall
be to the Authority), 5, 7, 8 (except that the jurisdiction to
which the tax shall be a debt to the extent indicated in that
Section 8 shall be the District), 9 (except as to the
disposition of taxes and penalties collected, and except that
the returned merchandise credit for this tax may not be taken
against any State tax, and except that the retailer's discount
is not allowed for taxes paid on aviation fuel that are subject
to the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133), 10, 11, 12 (except the reference therein to
Section 2b of the Retailers' Occupation Tax Act), 13 (except
that any reference to the State shall mean the District), the
first paragraph of Section 15, 16, 17, 18, 19 and 20 of the
Service Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act, as fully as if those provisions were
set forth herein.
Persons subject to any tax imposed under the authority
granted in this paragraph may reimburse themselves for their
serviceman's tax liability hereunder by separately stating the
tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax that
servicemen are authorized to collect under the Service Use Tax
Act, in accordance with such bracket schedules as the
Department may prescribe.

SB3019 Enrolled - 477 - LRB104 20255 HLH 33706 b
Whenever the Department determines that a refund should be
made under this paragraph to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Metro East Mass Transit District tax fund
established under paragraph (h) of this Section or the Local
Government Aviation Trust Fund, as appropriate.
Nothing in this paragraph shall be construed to authorize
the District to impose a tax upon the privilege of engaging in
any business which under the Constitution of the United States
may not be made the subject of taxation by the State.
(d) If a tax has been imposed under subsection (b), a Metro
East Mass Transit District Use Tax shall also be imposed upon
the privilege of using, in the district, any item of tangible
personal property that is purchased outside the district at
retail from a retailer, and that is titled or registered with
an agency of this State's government, at a rate of 1/4%, or as
authorized under subsection (d-5) of this Section, of the
selling price of the tangible personal property within the
District, as "selling price" is defined in the Use Tax Act. The
tax shall be collected from persons whose Illinois address for
titling or registration purposes is given as being in the
District. The tax shall be collected by the Department of
Revenue for the Metro East Mass Transit District. The tax must

SB3019 Enrolled - 478 - LRB104 20255 HLH 33706 b
be paid to the State, or an exemption determination must be
obtained from the Department of Revenue, before the title or
certificate of registration for the property may be issued.
The tax or proof of exemption may be transmitted to the
Department by way of the State agency with which, or the State
officer with whom, the tangible personal property must be
titled or registered if the Department and the State agency or
State officer determine that this procedure will expedite the
processing of applications for title or registration.
The Department shall have full power to administer and
enforce this paragraph; to collect all taxes, penalties and
interest due hereunder; to dispose of taxes, penalties and
interest so collected in the manner hereinafter provided; and
to determine all rights to credit memoranda or refunds arising
on account of the erroneous payment of tax, penalty or
interest hereunder. In the administration of, and compliance
with, this paragraph, the Department and persons who are
subject to this paragraph shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions and definitions of terms and
employ the same modes of procedure, as are prescribed in
Sections 2 (except the definition of "retailer maintaining a
place of business in this State"), 3 through 3-80 (except
provisions pertaining to the State rate of tax, and except
provisions concerning collection or refunding of the tax by

SB3019 Enrolled - 479 - LRB104 20255 HLH 33706 b
retailers), 4, 11, 12, 12a, 14, 15, 19 (except the portions
pertaining to claims by retailers and except the last
paragraph concerning refunds), 20, 21 and 22 of the Use Tax Act
and Section 3-7 of the Uniform Penalty and Interest Act, that
are not inconsistent with this paragraph, as fully as if those
provisions were set forth herein.
Whenever the Department determines that a refund should be
made under this paragraph to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Metro East Mass Transit District tax fund
established under paragraph (h) of this Section.
(d-1) If, on January 1, 2025, a unit of local government
has in effect a tax under subsections (b), (c), and (d) or if,
after January 1, 2025, a unit of local government imposes a tax
under subsections (b), (c), and (d), then that tax applies to
leases of tangible personal property in effect, entered into,
or renewed on or after that date in the same manner as the tax
under this Section and in accordance with the changes made by
this amendatory Act of the 103rd General Assembly.
(d-5) (A) The county board of any county participating in
the Metro East Mass Transit District may authorize, by
ordinance, a referendum on the question of whether the tax
rates for the Metro East Mass Transit District Retailers'

SB3019 Enrolled - 480 - LRB104 20255 HLH 33706 b
Occupation Tax, the Metro East Mass Transit District Service
Occupation Tax, and the Metro East Mass Transit District Use
Tax for the District should be increased from 0.25% to 0.75%.
Upon adopting the ordinance, the county board shall certify
the proposition to the proper election officials who shall
submit the proposition to the voters of the District at the
next election, in accordance with the general election law.
The proposition shall be in substantially the following
form:
Shall the tax rates for the Metro East Mass Transit
District Retailers' Occupation Tax, the Metro East Mass
Transit District Service Occupation Tax, and the Metro
East Mass Transit District Use Tax be increased from 0.25%
to 0.75%?
(B) Two thousand five hundred electors of any Metro East
Mass Transit District may petition the Chief Judge of the
Circuit Court, or any judge of that Circuit designated by the
Chief Judge, in which that District is located to cause to be
submitted to a vote of the electors the question whether the
tax rates for the Metro East Mass Transit District Retailers'
Occupation Tax, the Metro East Mass Transit District Service
Occupation Tax, and the Metro East Mass Transit District Use
Tax for the District should be increased from 0.25% to 0.75%.
Upon submission of such petition the court shall set a
date not less than 10 nor more than 30 days thereafter for a
hearing on the sufficiency thereof. Notice of the filing of

SB3019 Enrolled - 481 - LRB104 20255 HLH 33706 b
such petition and of such date shall be given in writing to the
District and the County Clerk at least 7 days before the date
of such hearing.
If such petition is found sufficient, the court shall
enter an order to submit that proposition at the next
election, in accordance with general election law.
The form of the petition shall be in substantially the
following form: To the Circuit Court of the County of (name of
county):
We, the undersigned electors of the (name of transit
district), respectfully petition your honor to submit to a
vote of the electors of (name of transit district) the
following proposition:
Shall the tax rates for the Metro East Mass Transit
District Retailers' Occupation Tax, the Metro East Mass
Transit District Service Occupation Tax, and the Metro
East Mass Transit District Use Tax be increased from 0.25%
to 0.75%?
Name Address, with Street and Number.
...................... ........................................
...................... ........................................
(C) The votes shall be recorded as "YES" or "NO". If a
majority of all votes cast on the proposition are for the
increase in the tax rates, the Metro East Mass Transit
District shall begin imposing the increased rates in the
District, and the Department of Revenue shall begin collecting

SB3019 Enrolled - 482 - LRB104 20255 HLH 33706 b
the increased amounts, as provided under this Section. An
ordinance imposing or discontinuing a tax hereunder or
effecting a change in the rate thereof shall be adopted and a
certified copy thereof filed with the Department on or before
the first day of October, whereupon the Department shall
proceed to administer and enforce this Section as of the first
day of January next following the adoption and filing, or on or
before the first day of April, whereupon the Department shall
proceed to administer and enforce this Section as of the first
day of July next following the adoption and filing.
(D) If the voters have approved a referendum under this
subsection, before November 1, 1994, to increase the tax rate
under this subsection, the Metro East Mass Transit District
Board of Trustees may adopt by a majority vote an ordinance at
any time before January 1, 1995 that excludes from the rate
increase tangible personal property that is titled or
registered with an agency of this State's government. The
ordinance excluding titled or registered tangible personal
property from the rate increase must be filed with the
Department at least 15 days before its effective date. At any
time after adopting an ordinance excluding from the rate
increase tangible personal property that is titled or
registered with an agency of this State's government, the
Metro East Mass Transit District Board of Trustees may adopt
an ordinance applying the rate increase to that tangible
personal property. The ordinance shall be adopted, and a

SB3019 Enrolled - 483 - LRB104 20255 HLH 33706 b
certified copy of that ordinance shall be filed with the
Department, on or before October 1, whereupon the Department
shall proceed to administer and enforce the rate increase
against tangible personal property titled or registered with
an agency of this State's government as of the following
January 1. After December 31, 1995, any reimposed rate
increase in effect under this subsection shall no longer apply
to tangible personal property titled or registered with an
agency of this State's government. Beginning January 1, 1996,
the Board of Trustees of any Metro East Mass Transit District
may never reimpose a previously excluded tax rate increase on
tangible personal property titled or registered with an agency
of this State's government. After July 1, 2004, if the voters
have approved a referendum under this subsection to increase
the tax rate under this subsection, the Metro East Mass
Transit District Board of Trustees may adopt by a majority
vote an ordinance that excludes from the rate increase
tangible personal property that is titled or registered with
an agency of this State's government. The ordinance excluding
titled or registered tangible personal property from the rate
increase shall be adopted, and a certified copy of that
ordinance shall be filed with the Department on or before
October 1, whereupon the Department shall administer and
enforce this exclusion from the rate increase as of the
following January 1, or on or before April 1, whereupon the
Department shall administer and enforce this exclusion from

SB3019 Enrolled - 484 - LRB104 20255 HLH 33706 b
the rate increase as of the following July 1. The Board of
Trustees of any Metro East Mass Transit District may never
reimpose a previously excluded tax rate increase on tangible
personal property titled or registered with an agency of this
State's government.
(d-6) If the Board of Trustees of any Metro East Mass
Transit District has imposed a rate increase under subsection
(d-5) and filed an ordinance with the Department of Revenue
excluding titled property from the higher rate, then that
Board may, by ordinance adopted with the concurrence of
two-thirds of the then trustees, impose throughout the
District a fee. The fee on the excluded property shall not
exceed $20 per retail transaction or an amount equal to the
amount of tax excluded, whichever is less, on tangible
personal property that is titled or registered with an agency
of this State's government. Beginning July 1, 2004, the fee
shall apply only to titled property that is subject to either
the Metro East Mass Transit District Retailers' Occupation Tax
or the Metro East Mass Transit District Service Occupation
Tax. No fee shall be imposed or collected under this
subsection on the sale of a motor vehicle in this State to a
resident of another state if that motor vehicle will not be
titled in this State.
(d-7) Until June 30, 2004, if a fee has been imposed under
subsection (d-6), a fee shall also be imposed upon the
privilege of using, in the district, any item of tangible

SB3019 Enrolled - 485 - LRB104 20255 HLH 33706 b
personal property that is titled or registered with any agency
of this State's government, in an amount equal to the amount of
the fee imposed under subsection (d-6).
(d-7.1) Beginning July 1, 2004, any fee imposed by the
Board of Trustees of any Metro East Mass Transit District
under subsection (d-6) and all civil penalties that may be
assessed as an incident of the fees shall be collected and
enforced by the State Department of Revenue. Reference to
"taxes" in this Section shall be construed to apply to the
administration, payment, and remittance of all fees under this
Section. For purposes of any fee imposed under subsection
(d-6), 4% of the fee, penalty, and interest received by the
Department in the first 12 months that the fee is collected and
enforced by the Department and 2% of the fee, penalty, and
interest following the first 12 months (except the amount
collected on aviation fuel sold on or after December 1, 2019)
shall be deposited into the Tax Compliance and Administration
Fund and shall be used by the Department, subject to
appropriation, to cover the costs of the Department. No
retailers' discount shall apply to any fee imposed under
subsection (d-6).
(d-8) No item of titled property shall be subject to both
the higher rate approved by referendum, as authorized under
subsection (d-5), and any fee imposed under subsection (d-6)
or (d-7).
(d-9) (Blank).

SB3019 Enrolled - 486 - LRB104 20255 HLH 33706 b
(d-10) (Blank).
(e) A certificate of registration issued by the State
Department of Revenue to a retailer under the Retailers'
Occupation Tax Act or under the Service Occupation Tax Act
shall permit the registrant to engage in a business that is
taxed under the tax imposed under paragraphs (b), (c) or (d) of
this Section and no additional registration shall be required
under the tax. A certificate issued under the Use Tax Act or
the Service Use Tax Act shall be applicable with regard to any
tax imposed under paragraph (c) of this Section.
(f) (Blank).
(g) Any ordinance imposing or discontinuing any tax under
this Section shall be adopted and a certified copy thereof
filed with the Department on or before June 1, whereupon the
Department of Revenue shall proceed to administer and enforce
this Section on behalf of the Metro East Mass Transit District
as of September 1 next following such adoption and filing.
Beginning January 1, 1992, an ordinance or resolution imposing
or discontinuing the tax hereunder shall be adopted and a
certified copy thereof filed with the Department on or before
the first day of July, whereupon the Department shall proceed
to administer and enforce this Section as of the first day of
October next following such adoption and filing. Beginning
January 1, 1993, except as provided in subsection (d-5) of
this Section, an ordinance or resolution imposing or
discontinuing the tax hereunder shall be adopted and a

SB3019 Enrolled - 487 - LRB104 20255 HLH 33706 b
certified copy thereof filed with the Department on or before
the first day of October, whereupon the Department shall
proceed to administer and enforce this Section as of the first
day of January next following such adoption and filing, or,
beginning January 1, 2004, on or before the first day of April,
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of July next following
the adoption and filing.
(h) Except as provided in subsection (d-7.1), the State
Department of Revenue shall, upon collecting any taxes as
provided in this Section, pay the taxes over to the State
Treasurer as trustee for the District. The taxes shall be held
in a trust fund outside the State treasury. If an
airport-related purpose has been certified, taxes and
penalties collected in St. Clair County on aviation fuel sold
on or after December 1, 2019 from the 0.50% of the 0.75% rate
shall be immediately paid over by the Department to the State
Treasurer, ex officio, as trustee, for deposit into the Local
Government Aviation Trust Fund. The Department shall only pay
moneys into the Local Government Aviation Trust Fund under
this Act for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
District.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order

SB3019 Enrolled - 488 - LRB104 20255 HLH 33706 b
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for
sales within a STAR bond district. The Department shall make
this certification only if the local mass transit district
imposes a tax on real property as provided in the definition of
"local sales taxes" under the Innovation Development and
Economy Act.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the State
Department of Revenue shall prepare and certify to the
Comptroller of the State of Illinois the amount to be paid to
the District, which shall be the amount (not including credit
memoranda and not including taxes and penalties collected on
aviation fuel sold on or after December 1, 2019 that are
deposited into the Local Government Aviation Trust Fund)
collected under this Section during the second preceding
calendar month by the Department plus an amount the Department
determines is necessary to offset any amounts that were
erroneously paid to a different taxing body, and not including
any amount equal to the amount of refunds made during the
second preceding calendar month by the Department on behalf of
the District, and not including any amount that the Department
determines is necessary to offset any amounts that were
payable to a different taxing body but were erroneously paid

SB3019 Enrolled - 489 - LRB104 20255 HLH 33706 b
to the District, and less any amounts that are transferred to
the STAR Bonds Revenue Fund, less 1.5% of the remainder, which
the Department shall transfer into the Tax Compliance and
Administration Fund. The Department, at the time of each
monthly disbursement to the District, shall prepare and
certify to the State Comptroller the amount to be transferred
into the Tax Compliance and Administration Fund under this
subsection. Within 10 days after receipt by the Comptroller of
the certification of the amount to be paid to the District and
the Tax Compliance and Administration Fund, the Comptroller
shall cause an order to be drawn for payment for the amount in
accordance with the direction in the certification.
(Source: P.A. 103-592, eff. 1-1-25; 104-6, eff. 1-1-26.)
Section 70-100. The Regional Transportation Authority Act
is amended by changing Section 4.03 as follows:
(70 ILCS 3615/4.03) (from Ch. 111 2/3, par. 704.03)
(Text of Section before amendment by P.A. 104-457)
Sec. 4.03. Taxes.
(a) In order to carry out any of the powers or purposes of
the Authority, the Board may, by ordinance adopted with the
concurrence of 12 of the then Directors, impose throughout the
metropolitan region any or all of the taxes provided in this
Section. Except as otherwise provided in this Act, taxes
imposed under this Section and civil penalties imposed

SB3019 Enrolled - 490 - LRB104 20255 HLH 33706 b
incident thereto shall be collected and enforced by the State
Department of Revenue. The Department shall have the power to
administer and enforce the taxes and to determine all rights
for refunds for erroneous payments of the taxes. Nothing in
Public Act 95-708 is intended to invalidate any taxes
currently imposed by the Authority. The increased vote
requirements to impose a tax shall only apply to actions taken
after January 1, 2008 (the effective date of Public Act
95-708).
(b) The Board may impose a public transportation tax upon
all persons engaged in the metropolitan region in the business
of selling at retail motor fuel for operation of motor
vehicles upon public highways. The tax shall be at a rate not
to exceed 5% of the gross receipts from the sales of motor fuel
in the course of the business. As used in this Act, the term
"motor fuel" shall have the same meaning as in the Motor Fuel
Tax Law. The Board may provide for details of the tax. The
provisions of any tax shall conform, as closely as may be
practicable, to the provisions of the Municipal Retailers
Occupation Tax Act, including, without limitation, conformity
to penalties with respect to the tax imposed and as to the
powers of the State Department of Revenue to promulgate and
enforce rules and regulations relating to the administration
and enforcement of the provisions of the tax imposed, except
that reference in the Act to any municipality shall refer to
the Authority and the tax shall be imposed only with regard to

SB3019 Enrolled - 491 - LRB104 20255 HLH 33706 b
receipts from sales of motor fuel in the metropolitan region,
at rates as limited by this Section.
(c) In connection with the tax imposed under paragraph (b)
of this Section, the Board may impose a tax upon the privilege
of using in the metropolitan region motor fuel for the
operation of a motor vehicle upon public highways, the tax to
be at a rate not in excess of the rate of tax imposed under
paragraph (b) of this Section. The Board may provide for
details of the tax.
(d) The Board may impose a motor vehicle parking tax upon
the privilege of parking motor vehicles at off-street parking
facilities in the metropolitan region at which a fee is
charged, and may provide for reasonable classifications in and
exemptions to the tax, for administration and enforcement
thereof and for civil penalties and refunds thereunder and may
provide criminal penalties thereunder, the maximum penalties
not to exceed the maximum criminal penalties provided in the
Retailers' Occupation Tax Act. The Authority may collect and
enforce the tax itself or by contract with any unit of local
government. The State Department of Revenue shall have no
responsibility for the collection and enforcement unless the
Department agrees with the Authority to undertake the
collection and enforcement. As used in this paragraph, the
term "parking facility" means a parking area or structure
having parking spaces for more than 2 vehicles at which motor
vehicles are permitted to park in return for an hourly, daily,

SB3019 Enrolled - 492 - LRB104 20255 HLH 33706 b
or other periodic fee, whether publicly or privately owned,
but does not include parking spaces on a public street, the use
of which is regulated by parking meters.
(e) The Board may impose a Regional Transportation
Authority Retailers' Occupation Tax upon all persons engaged
in the business of selling tangible personal property at
retail in the metropolitan region. In Cook County, the tax
rate shall be 1.25% of the gross receipts from sales of food
for human consumption that is to be consumed off the premises
where it is sold (other than alcoholic liquor taxable under
Section 8-1 of the Liquor Control Act of 1934, beverages, food
consisting of or infused with adult use cannabis, soft drinks,
candy, and food that has been prepared for immediate
consumption) and tangible personal property taxed at the 1%
rate under the Retailers' Occupation Tax Act, and 1% of the
gross receipts from other taxable sales made in the course of
that business. In DuPage, Kane, Lake, McHenry, and Will
counties, the tax rate shall be 0.75% of the gross receipts
from all taxable sales made in the course of that business,
including sales of food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic liquor taxable under Section 8-1 of the Liquor
Control Act of 1934, beverages, food consisting of or infused
with adult use cannabis, soft drinks, candy, and food that has
been prepared for immediate consumption). The rate of tax
imposed in DuPage, Kane, Lake, McHenry, and Will counties

SB3019 Enrolled - 493 - LRB104 20255 HLH 33706 b
under this Section on sales of aviation fuel on or after
December 1, 2019 shall, however, be 0.25% unless the Regional
Transportation Authority in DuPage, Kane, Lake, McHenry, and
Will counties has an "airport-related purpose" and the
additional 0.50% of the 0.75% tax on aviation fuel is expended
for airport-related purposes. If there is no airport-related
purpose to which aviation fuel tax revenue is dedicated, then
aviation fuel is excluded from the additional 0.50% of the
0.75% tax. The tax imposed under this Section and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the State Department of Revenue. The
Department shall have full power to administer and enforce
this Section; to collect all taxes and penalties so collected
in the manner hereinafter provided; and to determine all
rights to credit memoranda arising on account of the erroneous
payment of tax or penalty hereunder. In the administration of,
and compliance with this Section, the Department and persons
who are subject to this Section shall have the same rights,
remedies, privileges, immunities, powers, and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions, and definitions of terms,
and employ the same modes of procedure, as are prescribed in
Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65
(in respect to all provisions therein other than the State
rate of tax and other than the exemption for food for human
consumption that is to be consumed off the premises where it is

SB3019 Enrolled - 494 - LRB104 20255 HLH 33706 b
sold (other than alcoholic liquor taxable under Section 8-1 of
the Liquor Control Act of 1934, beverages, food consisting of
or infused with adult use cannabis, soft drinks, candy, and
food that has been prepared for immediate consumption), which
is taxed at the rate as provided in this subsection), 2c, 3
(except as to the disposition of taxes and penalties
collected, and except that the retailer's discount is not
allowed for taxes paid on aviation fuel that are subject to the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l,
5m, 5n, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12, and 13 of the
Retailers' Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act, as fully as if those provisions were
set forth herein.
The Board and DuPage, Kane, Lake, McHenry, and Will
counties must comply with the certification requirements for
airport-related purposes under Section 2-22 of the Retailers'
Occupation Tax Act. For purposes of this Section,
"airport-related purposes" has the meaning ascribed in Section
6z-20.2 of the State Finance Act. This exclusion for aviation
fuel only applies for so long as the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
Authority.
Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
seller's tax liability hereunder by separately stating the tax

SB3019 Enrolled - 495 - LRB104 20255 HLH 33706 b
as an additional charge, which charge may be stated in
combination in a single amount with State taxes that sellers
are required to collect under the Use Tax Act, under any
bracket schedules the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Regional Transportation Authority tax
fund established under paragraph (n) of this Section or the
Local Government Aviation Trust Fund, as appropriate.
If a tax is imposed under this subsection (e), a tax shall
also be imposed under subsections (f) and (g) of this Section.
For the purpose of determining whether a tax authorized
under this Section is applicable, a retail sale by a producer
of coal or other mineral mined in Illinois, is a sale at retail
at the place where the coal or other mineral mined in Illinois
is extracted from the earth. This paragraph does not apply to
coal or other mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the Federal Constitution as a sale in
interstate or foreign commerce.
No tax shall be imposed or collected under this subsection
on the sale of a motor vehicle in this State to a resident of

SB3019 Enrolled - 496 - LRB104 20255 HLH 33706 b
another state if that motor vehicle will not be titled in this
State.
Nothing in this Section shall be construed to authorize
the Regional Transportation Authority to impose a tax upon the
privilege of engaging in any business that under the
Constitution of the United States may not be made the subject
of taxation by this State.
(f) If a tax has been imposed under paragraph (e), a
Regional Transportation Authority Service Occupation Tax shall
also be imposed upon all persons engaged in the metropolitan
region in the business of making sales of service who, as an
incident to making the sales of service, transfer tangible
personal property within the metropolitan region, either in
the form of tangible personal property or in the form of real
estate as an incident to a sale of service. In Cook County, the
tax rate shall be: (1) 1.25% of the serviceman's cost price of
food prepared for immediate consumption and transferred
incident to a sale of service subject to the service
occupation tax by an entity that is located in the
metropolitan region and that is licensed under the Hospital
Licensing Act, the Nursing Home Care Act, the Assisted Living
and Shared Housing Act, the Specialized Mental Health
Rehabilitation Act of 2013, the ID/DD Community Care Act, the
MC/DD Act, or the Child Care Act of 1969, or an entity that
holds a permit issued pursuant to the Life Care Facilities
Act; (2) 1.25% of the selling price of food for human

SB3019 Enrolled - 497 - LRB104 20255 HLH 33706 b
consumption that is to be consumed off the premises where it is
sold (other than alcoholic liquor taxable under Section 8-1 of
the Liquor Control Act of 1934, beverages, food consisting of
or infused with adult use cannabis, soft drinks, candy, and
food that has been prepared for immediate consumption) and
tangible personal property taxed at the 1% rate under the
Service Occupation Tax Act; and (3) 1% of the selling price
from other taxable sales of tangible personal property
transferred. In DuPage, Kane, Lake, McHenry, and Will
counties, the rate shall be (1) 0.75% of the selling price of
all tangible personal property transferred, including food for
human consumption that is to be consumed off the premises
where it is sold (other than alcoholic liquor taxable under
Section 8-1 of the Liquor Control Act of 1934, beverages, food
consisting of or infused with adult use cannabis, soft drinks,
candy, and food that has been prepared for immediate
consumption); and (2) 0.75% of the serviceman's cost price of
food prepared for immediate consumption and transferred
incident to a sale of service subject to the service
occupation tax by an entity that is located in the
metropolitan region and that is licensed under the Hospital
Licensing Act, the Nursing Home Care Act, the Assisted Living
and Shared Housing Act, the Specialized Mental Health
Rehabilitation Act of 2013, the ID/DD Community Care Act, or
the MC/DD Act, or the Child Care Act of 1969, or an entity that
holds a permit issued pursuant to the Life Care Facilities

SB3019 Enrolled - 498 - LRB104 20255 HLH 33706 b
Act. The rate of tax imposed in DuPage, Kane, Lake, McHenry,
and Will counties under this Section on sales of aviation fuel
on or after December 1, 2019 shall, however, be 0.25% unless
the Regional Transportation Authority in DuPage, Kane, Lake,
McHenry, and Will counties has an "airport-related purpose"
and the additional 0.50% of the 0.75% tax on aviation fuel is
expended for airport-related purposes. If there is no
airport-related purpose to which aviation fuel tax revenue is
dedicated, then aviation fuel is excluded from the additional
0.5% of the 0.75% tax.
The Board and DuPage, Kane, Lake, McHenry, and Will
counties must comply with the certification requirements for
airport-related purposes under Section 2-22 of the Retailers'
Occupation Tax Act. For purposes of this Section,
"airport-related purposes" has the meaning ascribed in Section
6z-20.2 of the State Finance Act. This exclusion for aviation
fuel only applies for so long as the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
Authority.
The tax imposed under this paragraph and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the State Department of Revenue. The
Department shall have full power to administer and enforce
this paragraph; to collect all taxes and penalties due
hereunder; to dispose of taxes and penalties collected in the
manner hereinafter provided; and to determine all rights to

SB3019 Enrolled - 499 - LRB104 20255 HLH 33706 b
credit memoranda arising on account of the erroneous payment
of tax or penalty hereunder. In the administration of and
compliance with this paragraph, the Department and persons who
are subject to this paragraph shall have the same rights,
remedies, privileges, immunities, powers, and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions, and definitions of terms,
and employ the same modes of procedure, as are prescribed in
Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to all
provisions therein other than (i) the State rate of tax; (ii)
the exemption for food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic liquor taxable under Section 8-1 of the Liquor
Control Act of 1934, beverages, food consisting of or infused
with adult use cannabis, soft drinks, candy, and food that has
been prepared for immediate consumption), which is taxed at
the rate as provided in this subsection; and (iii) the
exemption for food prepared for immediate consumption and
transferred incident to a sale of service subject to the
service occupation tax by an entity that is licensed under the
Hospital Licensing Act, the Nursing Home Care Act, the
Assisted Living and Shared Housing Act, the Specialized Mental
Health Rehabilitation Act of 2013, the ID/DD Community Care
Act, or the MC/DD Act, or the Child Care Act of 1969, or an
entity that holds a permit issued pursuant to the Life Care
Facilities Act, which is taxed at the rate as provided in this

SB3019 Enrolled - 500 - LRB104 20255 HLH 33706 b
subsection), 4 (except that the reference to the State shall
be to the Authority), 5, 7, 8 (except that the jurisdiction to
which the tax shall be a debt to the extent indicated in that
Section 8 shall be the Authority), 9 (except as to the
disposition of taxes and penalties collected, and except that
the returned merchandise credit for this tax may not be taken
against any State tax, and except that the retailer's discount
is not allowed for taxes paid on aviation fuel that are subject
to the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133), 10, 11, 12 (except the reference therein to
Section 2b of the Retailers' Occupation Tax Act), 13 (except
that any reference to the State shall mean the Authority), the
first paragraph of Section 15, 16, 17, 18, 19, and 20 of the
Service Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act, as fully as if those provisions were
set forth herein.
Persons subject to any tax imposed under the authority
granted in this paragraph may reimburse themselves for their
serviceman's tax liability hereunder by separately stating the
tax as an additional charge, that charge may be stated in
combination in a single amount with State tax that servicemen
are authorized to collect under the Service Use Tax Act, under
any bracket schedules the Department may prescribe.
Whenever the Department determines that a refund should be
made under this paragraph to a claimant instead of issuing a
credit memorandum, the Department shall notify the State

SB3019 Enrolled - 501 - LRB104 20255 HLH 33706 b
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Regional Transportation Authority tax
fund established under paragraph (n) of this Section or the
Local Government Aviation Trust Fund, as appropriate.
Nothing in this paragraph shall be construed to authorize
the Authority to impose a tax upon the privilege of engaging in
any business that under the Constitution of the United States
may not be made the subject of taxation by the State.
(g) If a tax has been imposed under paragraph (e), a tax
shall also be imposed upon the privilege of using in the
metropolitan region, any item of tangible personal property
that is purchased outside the metropolitan region at retail
from a retailer, and that is titled or registered with an
agency of this State's government. In Cook County, the tax
rate shall be 1% of the selling price of the tangible personal
property, as "selling price" is defined in the Use Tax Act. In
DuPage, Kane, Lake, McHenry, and Will counties, the tax rate
shall be 0.75% of the selling price of the tangible personal
property, as "selling price" is defined in the Use Tax Act. The
tax shall be collected from persons whose Illinois address for
titling or registration purposes is given as being in the
metropolitan region. The tax shall be collected by the
Department of Revenue for the Regional Transportation
Authority. The tax must be paid to the State, or an exemption

SB3019 Enrolled - 502 - LRB104 20255 HLH 33706 b
determination must be obtained from the Department of Revenue,
before the title or certificate of registration for the
property may be issued. The tax or proof of exemption may be
transmitted to the Department by way of the State agency with
which, or the State officer with whom, the tangible personal
property must be titled or registered if the Department and
the State agency or State officer determine that this
procedure will expedite the processing of applications for
title or registration.
The Department shall have full power to administer and
enforce this paragraph; to collect all taxes, penalties, and
interest due hereunder; to dispose of taxes, penalties, and
interest collected in the manner hereinafter provided; and to
determine all rights to credit memoranda or refunds arising on
account of the erroneous payment of tax, penalty, or interest
hereunder. In the administration of and compliance with this
paragraph, the Department and persons who are subject to this
paragraph shall have the same rights, remedies, privileges,
immunities, powers, and duties, and be subject to the same
conditions, restrictions, limitations, penalties, exclusions,
exemptions, and definitions of terms and employ the same modes
of procedure, as are prescribed in Sections 2 (except the
definition of "retailer maintaining a place of business in
this State"), 3 through 3-80 (except provisions pertaining to
the State rate of tax, and except provisions concerning
collection or refunding of the tax by retailers), 4, 11, 12,

SB3019 Enrolled - 503 - LRB104 20255 HLH 33706 b
12a, 14, 15, 19 (except the portions pertaining to claims by
retailers and except the last paragraph concerning refunds),
20, 21, and 22 of the Use Tax Act, and are not inconsistent
with this paragraph, as fully as if those provisions were set
forth herein.
Whenever the Department determines that a refund should be
made under this paragraph to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Regional Transportation Authority tax
fund established under paragraph (n) of this Section.
(g-5) If, on January 1, 2025, a unit of local government
has in effect a tax under subsections (e), (f), and (g), or if,
after January 1, 2025, a unit of local government imposes a tax
under subsections (e), (f), and (g), then that tax applies to
leases of tangible personal property in effect, entered into,
or renewed on or after that date in the same manner as the tax
under this Section and in accordance with the changes made by
Public Act 103-592.
(h) The Authority may impose a replacement vehicle tax of
$50 on any passenger car as defined in Section 1-157 of the
Illinois Vehicle Code purchased within the metropolitan region
by or on behalf of an insurance company to replace a passenger
car of an insured person in settlement of a total loss claim.

SB3019 Enrolled - 504 - LRB104 20255 HLH 33706 b
The tax imposed may not become effective before the first day
of the month following the passage of the ordinance imposing
the tax and receipt of a certified copy of the ordinance by the
Department of Revenue. The Department of Revenue shall collect
the tax for the Authority in accordance with Sections 3-2002
and 3-2003 of the Illinois Vehicle Code.
The Department shall immediately pay over to the State
Treasurer, ex officio, as trustee, all taxes collected
hereunder.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for
sales within a STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to the Authority. The
amount to be paid to the Authority shall be the amount
collected hereunder during the second preceding calendar month
by the Department, less any amount determined by the
Department to be necessary for the payment of refunds, and
less any amounts that are transferred to the STAR Bonds

SB3019 Enrolled - 505 - LRB104 20255 HLH 33706 b
Revenue Fund. Within 10 days after receipt by the Comptroller
of the disbursement certification to the Authority provided
for in this Section to be given to the Comptroller by the
Department, the Comptroller shall cause the orders to be drawn
for that amount in accordance with the directions contained in
the certification.
(i) The Board may not impose any other taxes except as it
may from time to time be authorized by law to impose.
(j) A certificate of registration issued by the State
Department of Revenue to a retailer under the Retailers'
Occupation Tax Act or under the Service Occupation Tax Act
shall permit the registrant to engage in a business that is
taxed under the tax imposed under paragraphs (b), (e), (f) or
(g) of this Section and no additional registration shall be
required under the tax. A certificate issued under the Use Tax
Act or the Service Use Tax Act shall be applicable with regard
to any tax imposed under paragraph (c) of this Section.
(k) The provisions of any tax imposed under paragraph (c)
of this Section shall conform as closely as may be practicable
to the provisions of the Use Tax Act, including, without
limitation, conformity as to penalties with respect to the tax
imposed and as to the powers of the State Department of Revenue
to promulgate and enforce rules and regulations relating to
the administration and enforcement of the provisions of the
tax imposed. The taxes shall be imposed only on use within the
metropolitan region and at rates as provided in the paragraph.

SB3019 Enrolled - 506 - LRB104 20255 HLH 33706 b
(l) The Board in imposing any tax as provided in
paragraphs (b) and (c) of this Section, shall, after seeking
the advice of the State Department of Revenue, provide means
for retailers, users or purchasers of motor fuel for purposes
other than those with regard to which the taxes may be imposed
as provided in those paragraphs to receive refunds of taxes
improperly paid, which provisions may be at variance with the
refund provisions as applicable under the Municipal Retailers
Occupation Tax Act. The State Department of Revenue may
provide for certificates of registration for users or
purchasers of motor fuel for purposes other than those with
regard to which taxes may be imposed as provided in paragraphs
(b) and (c) of this Section to facilitate the reporting and
nontaxability of the exempt sales or uses.
(m) Any ordinance imposing or discontinuing any tax under
this Section shall be adopted and a certified copy thereof
filed with the Department on or before June 1, whereupon the
Department of Revenue shall proceed to administer and enforce
this Section on behalf of the Regional Transportation
Authority as of September 1 next following such adoption and
filing. Beginning January 1, 1992, an ordinance or resolution
imposing or discontinuing the tax hereunder shall be adopted
and a certified copy thereof filed with the Department on or
before the first day of July, whereupon the Department shall
proceed to administer and enforce this Section as of the first
day of October next following such adoption and filing.

SB3019 Enrolled - 507 - LRB104 20255 HLH 33706 b
Beginning January 1, 1993, an ordinance or resolution
imposing, increasing, decreasing, or discontinuing the tax
hereunder shall be adopted and a certified copy thereof filed
with the Department, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of the
first month to occur not less than 60 days following such
adoption and filing. Any ordinance or resolution of the
Authority imposing a tax under this Section and in effect on
August 1, 2007 shall remain in full force and effect and shall
be administered by the Department of Revenue under the terms
and conditions and rates of tax established by such ordinance
or resolution until the Department begins administering and
enforcing an increased tax under this Section as authorized by
Public Act 95-708. The tax rates authorized by Public Act
95-708 are effective only if imposed by ordinance of the
Authority.
(n) Except as otherwise provided in this subsection (n),
the State Department of Revenue shall, upon collecting any
taxes as provided in this Section, pay the taxes over to the
State Treasurer as trustee for the Authority. The taxes shall
be held in a trust fund outside the State Treasury. If an
airport-related purpose has been certified, taxes and
penalties collected in DuPage, Kane, Lake, McHenry and Will
counties on aviation fuel sold on or after December 1, 2019
from the 0.50% of the 0.75% rate shall be immediately paid over
by the Department to the State Treasurer, ex officio, as

SB3019 Enrolled - 508 - LRB104 20255 HLH 33706 b
trustee, for deposit into the Local Government Aviation Trust
Fund. The Department shall only pay moneys into the Local
Government Aviation Trust Fund under this Act for so long as
the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the Authority. On or before the
25th day of each calendar month, the State Department of
Revenue shall prepare and certify to the Comptroller of the
State of Illinois and to the Authority (i) the amount of taxes
collected in each county other than Cook County in the
metropolitan region, (not including, if an airport-related
purpose has been certified, the taxes and penalties collected
from the 0.50% of the 0.75% rate on aviation fuel sold on or
after December 1, 2019 that are deposited into the Local
Government Aviation Trust Fund) (ii) the amount of taxes
collected within the City of Chicago, and (iii) the amount
collected in that portion of Cook County outside of Chicago,
each amount less the amount necessary for the payment of
refunds to taxpayers located in those areas described in items
(i), (ii), and (iii), and less 1.5% of the remainder, which
shall be transferred from the trust fund into the Tax
Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the Authority, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this subsection. Within 10 days after receipt by the
Comptroller of the certification of the amounts, the

SB3019 Enrolled - 509 - LRB104 20255 HLH 33706 b
Comptroller shall cause an order to be drawn for the transfer
of the amount certified into the Tax Compliance and
Administration Fund and the payment of two-thirds of the
amounts certified in item (i) of this subsection to the
Authority and one-third of the amounts certified in item (i)
of this subsection to the respective counties other than Cook
County and the amount certified in items (ii) and (iii) of this
subsection to the Authority.
In addition to the disbursement required by the preceding
paragraph, an allocation shall be made in July 1991 and each
year thereafter to the Regional Transportation Authority. The
allocation shall be made in an amount equal to the average
monthly distribution during the preceding calendar year
(excluding the 2 months of lowest receipts) and the allocation
shall include the amount of average monthly distribution from
the Regional Transportation Authority Occupation and Use Tax
Replacement Fund. The distribution made in July 1992 and each
year thereafter under this paragraph and the preceding
paragraph shall be reduced by the amount allocated and
disbursed under this paragraph in the preceding calendar year.
The Department of Revenue shall prepare and certify to the
Comptroller for disbursement the allocations made in
accordance with this paragraph.
(o) Failure to adopt a budget ordinance or otherwise to
comply with Section 4.01 of this Act or to adopt a Five-year
Capital Program or otherwise to comply with paragraph (b) of

SB3019 Enrolled - 510 - LRB104 20255 HLH 33706 b
Section 2.01 of this Act shall not affect the validity of any
tax imposed by the Authority otherwise in conformity with law.
(p) At no time shall a public transportation tax or motor
vehicle parking tax authorized under paragraphs (b), (c), and
(d) of this Section be in effect at the same time as any
retailers' occupation, use or service occupation tax
authorized under paragraphs (e), (f), and (g) of this Section
is in effect.
Any taxes imposed under the authority provided in
paragraphs (b), (c), and (d) shall remain in effect only until
the time as any tax authorized by paragraph (e), (f), or (g) of
this Section is imposed and becomes effective. Once any tax
authorized by paragraph (e), (f), or (g) is imposed the Board
may not reimpose taxes as authorized in paragraphs (b), (c),
and (d) of the Section unless any tax authorized by paragraph
(e), (f), or (g) of this Section becomes ineffective by means
other than an ordinance of the Board.
(q) Any existing rights, remedies and obligations
(including enforcement by the Regional Transportation
Authority) arising under any tax imposed under paragraph (b),
(c), or (d) of this Section shall not be affected by the
imposition of a tax under paragraph (e), (f), or (g) of this
Section.
(Source: P.A. 103-592, eff. 1-1-25; 103-781, eff. 8-5-24;
104-6, eff. 1-1-26; 104-417, eff. 8-15-25.)

SB3019 Enrolled - 511 - LRB104 20255 HLH 33706 b
(Text of Section after amendment by P.A. 104-457)
Sec. 4.03. Taxes.
(a) Except as provided in subsection (m), in order to
carry out any of the powers or purposes of the Authority, the
Board may, by ordinance approved by a supermajority vote,
impose throughout the metropolitan region any or all of the
taxes provided in this Section. Except as otherwise provided
in this Act, taxes imposed under this Section and civil
penalties imposed incident thereto shall be collected and
enforced by the Department of Revenue. The Department shall
have the power to administer and enforce the taxes and to
determine all rights for refunds for erroneous payments of the
taxes. Nothing in Public Act 95-708 is intended to invalidate
any taxes currently imposed by the Authority. The increased
vote requirements to impose a tax shall only apply to actions
taken after January 1, 2008 (the effective date of Public Act
95-708).
(b) The Board may impose a public transportation tax upon
all persons engaged in the metropolitan region in the business
of selling at retail motor fuel for operation of motor
vehicles upon public highways. The tax shall be at a rate not
to exceed 5% of the gross receipts from the sales of motor fuel
in the course of the business. As used in this Act, the term
"motor fuel" shall have the same meaning as in the Motor Fuel
Tax Law. The Board may provide for details of the tax. The
provisions of any tax shall conform, as closely as may be

SB3019 Enrolled - 512 - LRB104 20255 HLH 33706 b
practicable, to the provisions of the Municipal Retailers
Occupation Tax Act, including, without limitation, conformity
to penalties with respect to the tax imposed and as to the
powers of the Department of Revenue to promulgate and enforce
rules and regulations relating to the administration and
enforcement of the provisions of the tax imposed, except that
reference in the Act to any municipality shall refer to the
Authority and the tax shall be imposed only with regard to
receipts from sales of motor fuel in the metropolitan region,
at rates as limited by this Section.
(c) In connection with the tax imposed under paragraph (b)
of this Section, the Board may impose a tax upon the privilege
of using in the metropolitan region motor fuel for the
operation of a motor vehicle upon public highways, the tax to
be at a rate not in excess of the rate of tax imposed under
paragraph (b) of this Section. The Board may provide for
details of the tax.
(d) The Board may impose a motor vehicle parking tax upon
the privilege of parking motor vehicles at off-street parking
facilities in the metropolitan region at which a fee is
charged, and may provide for reasonable classifications in and
exemptions to the tax, for administration and enforcement
thereof and for civil penalties and refunds thereunder and may
provide criminal penalties thereunder, the maximum penalties
not to exceed the maximum criminal penalties provided in the
Retailers' Occupation Tax Act. The Authority may collect and

SB3019 Enrolled - 513 - LRB104 20255 HLH 33706 b
enforce the tax itself or by contract with any unit of local
government. The Department of Revenue shall have no
responsibility for the collection and enforcement unless the
Department agrees with the Authority to undertake the
collection and enforcement. As used in this paragraph, the
term "parking facility" means a parking area or structure
having parking spaces for more than 2 vehicles at which motor
vehicles are permitted to park in return for an hourly, daily,
or other periodic fee, whether publicly or privately owned,
but does not include parking spaces on a public street, the use
of which is regulated by parking meters.
(e) The Board may impose a Northern Illinois Transit
Authority Retailers' Occupation Tax upon all persons engaged
in the business of selling tangible personal property at
retail in the metropolitan region. In Cook County, unless the
tax rate is increased by the Board by ordinance, as provided in
this Section, the tax rate shall be 1.25% of the gross receipts
from sales of food for human consumption that is to be consumed
off the premises where it is sold (other than alcoholic liquor
taxable under Section 8-1 of the Liquor Control Act of 1934
beverages, food consisting of or infused with adult use
cannabis, soft drinks, candy, and food that has been prepared
for immediate consumption) and tangible personal property
taxed at the 1% rate under the Retailers' Occupation Tax Act,
and 1% of the gross receipts from other taxable sales made in
the course of that business. In Cook County, on and after the

SB3019 Enrolled - 514 - LRB104 20255 HLH 33706 b
effective date of this amendatory Act of the 104th General
Assembly, the Board may, by ordinance, increase the tax rate
to not more than 1.5% of the gross receipts from sales of food
for human consumption that is to be consumed off the premises
where it is sold (other than alcoholic liquor taxable under
Section 8-1 of the Liquor Control Act of 1934 beverages, food
consisting of or infused with adult use cannabis, soft drinks,
candy, and food that has been prepared for immediate
consumption) and tangible personal property taxed at the 1%
rate under the Retailers' Occupation Tax Act, and 1.25% of the
gross receipts from other taxable sales made in the course of
that business. The Board shall take such a vote on whether to
increase the tax rate no later than 60 days after the effective
date of this Act. In DuPage, Kane, Lake, McHenry, and Will
counties, unless the tax rate is increased by the Board by an
ordinance as approved by this Section, the tax rate shall be
0.75% of the gross receipts from all taxable sales made in the
course of that business, including sales of food for human
consumption that is to be consumed off the premises where it is
sold (other than alcoholic liquor taxable under Section 8-1 of
the Liquor Control Act of 1934 beverages, food consisting of
or infused with adult use cannabis, soft drinks, candy, and
food that has been prepared for immediate consumption). In
DuPage, Kane, Lake, McHenry, and Will counties, on and after
the effective date of this amendatory Act of the 104th General
Assembly, the Board may, by ordinance, increase the tax rate

SB3019 Enrolled - 515 - LRB104 20255 HLH 33706 b
to not more than 1% of the gross receipts from all taxable
sales made in the course of that business, including sales of
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic liquor taxable
under Section 8-1 of the Liquor Control Act of 1934 beverages,
food consisting of or infused with adult use cannabis, soft
drinks, candy, and food that has been prepared for immediate
consumption). The rate of tax imposed in DuPage, Kane, Lake,
McHenry, and Will counties under this Section on sales of
aviation fuel on or after December 1, 2019 shall, however, be
0.25% unless the Authority in DuPage, Kane, Lake, McHenry, and
Will counties has an "airport-related purpose" and the
additional 0.50% of the 0.75% tax (or 0.75% of 1% tax if the
tax rate is increased by the Board to 1%) on aviation fuel is
expended for airport-related purposes. If there is no
airport-related purpose to which aviation fuel tax revenue is
dedicated, then aviation fuel is excluded from the additional
tax. The tax imposed under this Section and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the Department of Revenue. The
Department shall have full power to administer and enforce
this Section; to collect all taxes and penalties so collected
in the manner hereinafter provided; and to determine all
rights to credit memoranda arising on account of the erroneous
payment of tax or penalty hereunder. In the administration of,
and compliance with this Section, the Department and persons

SB3019 Enrolled - 516 - LRB104 20255 HLH 33706 b
who are subject to this Section shall have the same rights,
remedies, privileges, immunities, powers, and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions, and definitions of terms,
and employ the same modes of procedure, as are prescribed in
Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65
(in respect to all provisions therein other than the State
rate of tax and other than the exemption for food for human
consumption that is to be consumed off the premises where it is
sold (other than alcoholic liquor taxable under Section 8-1 of
the Liquor Control Act of 1934 beverages, food consisting of
or infused with adult use cannabis, soft drinks, candy, and
food that has been prepared for immediate consumption), which
is taxed at the rate as provided in this subsection), 2c, 3
(except as to the disposition of taxes and penalties
collected, and except that the retailer's discount is not
allowed for taxes paid on aviation fuel that are subject to the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l,
5m, 5n, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12, and 13 of the
Retailers' Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act, as fully as if those provisions were
set forth herein.
The Board and DuPage, Kane, Lake, McHenry, and Will
counties must comply with the certification requirements for
airport-related purposes under Section 2-22 of the Retailers'

SB3019 Enrolled - 517 - LRB104 20255 HLH 33706 b
Occupation Tax Act. For purposes of this Section,
"airport-related purposes" has the meaning ascribed in Section
6z-20.2 of the State Finance Act. This exclusion for aviation
fuel only applies for so long as the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
Authority.
Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
seller's tax liability hereunder by separately stating the tax
as an additional charge, which charge may be stated in
combination in a single amount with State taxes that sellers
are required to collect under the Use Tax Act, under any
bracket schedules the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Northern Illinois Transit Authority tax
fund established under paragraph (n) of this Section or the
Local Government Aviation Trust Fund, as appropriate.
If a tax is imposed under this subsection (e), a tax shall
also be imposed under subsections (f) and (g) of this Section.
For the purpose of determining whether a tax authorized
under this Section is applicable, a retail sale by a producer

SB3019 Enrolled - 518 - LRB104 20255 HLH 33706 b
of coal or other mineral mined in Illinois, is a sale at retail
at the place where the coal or other mineral mined in Illinois
is extracted from the earth. This paragraph does not apply to
coal or other mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the Federal Constitution as a sale in
interstate or foreign commerce.
No tax shall be imposed or collected under this subsection
on the sale of a motor vehicle in this State to a resident of
another state if that motor vehicle will not be titled in this
State.
Nothing in this Section shall be construed to authorize
the Authority to impose a tax upon the privilege of engaging in
any business that under the Constitution of the United States
may not be made the subject of taxation by this State.
(f) If a tax has been imposed under paragraph (e), a
Northern Illinois Transit Authority Service Occupation Tax
shall also be imposed upon all persons engaged in the
metropolitan region in the business of making sales of service
who, as an incident to making the sales of service, transfer
tangible personal property within the metropolitan region,
either in the form of tangible personal property or in the form
of real estate as an incident to a sale of service. In Cook
County, unless the tax rate is increased by the Board by
ordinance, as provided in this Section, the tax rate shall be:
(1) 1.25% of the serviceman's cost price of food prepared for

SB3019 Enrolled - 519 - LRB104 20255 HLH 33706 b
immediate consumption and transferred incident to a sale of
service subject to the service occupation tax by an entity
that is located in the metropolitan region and that is
licensed under the Hospital Licensing Act, the Nursing Home
Care Act, the Assisted Living and Shared Housing Act, the
Specialized Mental Health Rehabilitation Act of 2013, the
ID/DD Community Care Act, the MC/DD Act, or the Child Care Act
of 1969, or an entity that holds a permit issued pursuant to
the Life Care Facilities Act; (2) 1.25% of the selling price of
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic liquor taxable
under Section 8-1 of the Liquor Control Act of 1934 beverages,
food consisting of or infused with adult use cannabis, soft
drinks, candy, and food that has been prepared for immediate
consumption) and tangible personal property taxed at the 1%
rate under the Service Occupation Tax Act; and (3) 1% of the
selling price from other taxable sales of tangible personal
property transferred. In Cook County, on and after the
effective date of this amendatory Act of the 104th General
Assembly, the Board may, by ordinance, increase the tax rate
to not more than: (1) 1.5% of the serviceman's cost price of
food prepared for immediate consumption and transferred
incident to a sale of service subject to the service
occupation tax by an entity that is located in the
metropolitan region and that is licensed under the Hospital
Licensing Act, the Nursing Home Care Act, the Assisted Living

SB3019 Enrolled - 520 - LRB104 20255 HLH 33706 b
and Shared Housing Act, the Specialized Mental Health
Rehabilitation Act of 2013, the ID/DD Community Care Act, the
MC/DD Act, or the Child Care Act of 1969, or an entity that
holds a permit issued pursuant to the Life Care Facilities
Act; (2) 1.5% of the selling price of food for human
consumption that is to be consumed off the premises where it is
sold (other than alcoholic liquor taxable under Section 8-1 of
the Liquor Control Act of 1934 beverages, food consisting of
or infused with adult use cannabis, soft drinks, candy, and
food that has been prepared for immediate consumption) and
tangible personal property taxed at the 1% rate under the
Service Occupation Tax Act; and (3) 1.25% of the selling price
from other taxable sales of tangible personal property
transferred. In DuPage, Kane, Lake, McHenry, and Will
counties, before the effective date of this amendatory Act of
the 104th General Assembly, the rate shall be (1) 0.75% of the
selling price of all tangible personal property transferred,
including food for human consumption that is to be consumed
off the premises where it is sold (other than alcoholic liquor
taxable under Section 8-1 of the Liquor Control Act of 1934
beverages, food consisting of or infused with adult use
cannabis, soft drinks, candy, and food that has been prepared
for immediate consumption); and (2) 0.75% of the serviceman's
cost price of food prepared for immediate consumption and
transferred incident to a sale of service subject to the
service occupation tax by an entity that is located in the

SB3019 Enrolled - 521 - LRB104 20255 HLH 33706 b
metropolitan region and that is licensed under the Hospital
Licensing Act, the Nursing Home Care Act, the Assisted Living
and Shared Housing Act, the Specialized Mental Health
Rehabilitation Act of 2013, the ID/DD Community Care Act, or
the MC/DD Act, or the Child Care Act of 1969, or an entity that
holds a permit issued pursuant to the Life Care Facilities
Act. In DuPage, Kane, Lake, McHenry, and Will counties, on and
after the effective date of this amendatory Act of the 104th
General Assembly, the Board may, by ordinance, increase the
tax rate to not more than 1% of the selling price of all
tangible personal property transferred. The rate of tax
imposed in DuPage, Kane, Lake, McHenry, and Will counties
under this Section on sales of aviation fuel on or after
December 1, 2019 shall, however, be 0.25% unless the Authority
in DuPage, Kane, Lake, McHenry, and Will counties has an
"airport-related purpose" and the additional 0.50% of the
0.75% (or 0.75% of 1% tax if the tax rate is increased by the
Board to 1%) tax on aviation fuel is expended for
airport-related purposes. If there is no airport-related
purpose to which aviation fuel tax revenue is dedicated, then
aviation fuel is excluded from the additional tax.
The Board and DuPage, Kane, Lake, McHenry, and Will
counties must comply with the certification requirements for
airport-related purposes under Section 2-22 of the Retailers'
Occupation Tax Act. For purposes of this Section,
"airport-related purposes" has the meaning ascribed in Section

SB3019 Enrolled - 522 - LRB104 20255 HLH 33706 b
6z-20.2 of the State Finance Act. This exclusion for aviation
fuel only applies for so long as the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
Authority.
The tax imposed under this paragraph and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the Department of Revenue. The
Department shall have full power to administer and enforce
this paragraph; to collect all taxes and penalties due
hereunder; to dispose of taxes and penalties collected in the
manner hereinafter provided; and to determine all rights to
credit memoranda arising on account of the erroneous payment
of tax or penalty hereunder. In the administration of and
compliance with this paragraph, the Department and persons who
are subject to this paragraph shall have the same rights,
remedies, privileges, immunities, powers, and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions, and definitions of terms,
and employ the same modes of procedure, as are prescribed in
Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to all
provisions therein other than (i) the State rate of tax; (ii)
the exemption for food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic liquor taxable under Section 8-1 of the Liquor
Control Act of 1934 beverages, food consisting of or infused
with adult use cannabis, soft drinks, candy, and food that has

SB3019 Enrolled - 523 - LRB104 20255 HLH 33706 b
been prepared for immediate consumption), which is taxed at
the rate as provided in this subsection; and (iii) the
exemption for food prepared for immediate consumption and
transferred incident to a sale of service subject to the
service occupation tax by an entity that is licensed under the
Hospital Licensing Act, the Nursing Home Care Act, the
Assisted Living and Shared Housing Act, the Specialized Mental
Health Rehabilitation Act of 2013, the ID/DD Community Care
Act, or the MC/DD Act, or the Child Care Act of 1969, or an
entity that holds a permit issued pursuant to the Life Care
Facilities Act, which is taxed at the rate as provided in this
subsection), 4 (except that the reference to the State shall
be to the Authority), 5, 7, 8 (except that the jurisdiction to
which the tax shall be a debt to the extent indicated in that
Section 8 shall be the Authority), 9 (except as to the
disposition of taxes and penalties collected, and except that
the returned merchandise credit for this tax may not be taken
against any State tax, and except that the retailer's discount
is not allowed for taxes paid on aviation fuel that are subject
to the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133), 10, 11, 12 (except the reference therein to
Section 2b of the Retailers' Occupation Tax Act), 13 (except
that any reference to the State shall mean the Authority), the
first paragraph of Section 15, 16, 17, 18, 19, and 20 of the
Service Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act, as fully as if those provisions were

SB3019 Enrolled - 524 - LRB104 20255 HLH 33706 b
set forth herein.
Persons subject to any tax imposed under the authority
granted in this paragraph may reimburse themselves for their
serviceman's tax liability hereunder by separately stating the
tax as an additional charge, that charge may be stated in
combination in a single amount with State tax that servicemen
are authorized to collect under the Service Use Tax Act, under
any bracket schedules the Department may prescribe.
Whenever the Department of Revenue determines that a
refund should be made under this paragraph to a claimant
instead of issuing a credit memorandum, the Department of
Revenue shall notify the State Comptroller, who shall cause
the warrant to be drawn for the amount specified, and to the
person named in the notification from the Department of
Revenue. The refund shall be paid by the State Treasurer out of
the Northern Illinois Transit Authority tax fund established
under paragraph (n) of this Section or the Local Government
Aviation Trust Fund, as appropriate.
Nothing in this paragraph shall be construed to authorize
the Authority to impose a tax upon the privilege of engaging in
any business that under the Constitution of the United States
may not be made the subject of taxation by the State.
(g) If a tax has been imposed under paragraph (e), a tax
shall also be imposed upon the privilege of using in the
metropolitan region, any item of tangible personal property
that is purchased outside the metropolitan region at retail

SB3019 Enrolled - 525 - LRB104 20255 HLH 33706 b
from a retailer, and that is titled or registered with an
agency of this State's government. In Cook County, unless the
tax rate is increased by the Board by ordinance, as provided in
this Section, the tax rate shall be 1% of the selling price of
the tangible personal property, as "selling price" is defined
in the Use Tax Act. In Cook County, on and after the effective
date of this amendatory Act of the 104th General Assembly, the
Board may, by ordinance, increase the tax rate to not more than
1.25% of the selling price of the tangible personal property,
as "selling price" is defined in the Use Tax Act. In DuPage,
Kane, Lake, McHenry, and Will counties, before the effective
date of this amendatory Act of the 104th General Assembly, the
tax rate shall be 0.75% of the selling price of the tangible
personal property, as "selling price" is defined in the Use
Tax Act. In DuPage, Kane, Lake, McHenry, and Will counties, on
and after the effective date of this amendatory Act of the
104th General Assembly, the Board may, by ordinance, increase
the tax rate to not more than 1% of the selling price of the
tangible personal property, as "selling price" is defined in
the Use Tax Act. The tax shall be collected from persons whose
Illinois address for titling or registration purposes is given
as being in the metropolitan region. The tax shall be
collected by the Department of Revenue for the Authority. The
tax must be paid to the State, or an exemption determination
must be obtained from the Department of Revenue, before the
title or certificate of registration for the property may be

SB3019 Enrolled - 526 - LRB104 20255 HLH 33706 b
issued. The tax or proof of exemption may be transmitted to the
Department by way of the State agency with which, or the State
officer with whom, the tangible personal property must be
titled or registered if the Department and the State agency or
State officer determine that this procedure will expedite the
processing of applications for title or registration.
The Department shall have full power to administer and
enforce this paragraph; to collect all taxes, penalties, and
interest due hereunder; to dispose of taxes, penalties, and
interest collected in the manner hereinafter provided; and to
determine all rights to credit memoranda or refunds arising on
account of the erroneous payment of tax, penalty, or interest
hereunder. In the administration of and compliance with this
paragraph, the Department and persons who are subject to this
paragraph shall have the same rights, remedies, privileges,
immunities, powers, and duties, and be subject to the same
conditions, restrictions, limitations, penalties, exclusions,
exemptions, and definitions of terms and employ the same modes
of procedure, as are prescribed in Sections 2 (except the
definition of "retailer maintaining a place of business in
this State"), 3 through 3-80 (except provisions pertaining to
the State rate of tax, and except provisions concerning
collection or refunding of the tax by retailers), 4, 11, 12,
12a, 14, 15, 19 (except the portions pertaining to claims by
retailers and except the last paragraph concerning refunds),
20, 21, and 22 of the Use Tax Act, and are not inconsistent

SB3019 Enrolled - 527 - LRB104 20255 HLH 33706 b
with this paragraph, as fully as if those provisions were set
forth herein.
Whenever the Department determines that a refund should be
made under this paragraph to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Northern Illinois Transit Authority tax
fund established under paragraph (n) of this Section.
(g-5) If, on January 1, 2025, a unit of local government
has in effect a tax under subsections (e), (f), and (g), or if,
after January 1, 2025, a unit of local government imposes a tax
under subsections (e), (f), and (g), then that tax applies to
leases of tangible personal property in effect, entered into,
or renewed on or after that date in the same manner as the tax
under this Section and in accordance with the changes made by
Public Act 103-592.
(h) The Authority may impose a replacement vehicle tax of
$50 on any passenger car as defined in Section 1-157 of the
Illinois Vehicle Code purchased within the metropolitan region
by or on behalf of an insurance company to replace a passenger
car of an insured person in settlement of a total loss claim.
The tax imposed may not become effective before the first day
of the month following the passage of the ordinance imposing
the tax and receipt of a certified copy of the ordinance by the

SB3019 Enrolled - 528 - LRB104 20255 HLH 33706 b
Department of Revenue. The Department of Revenue shall collect
the tax for the Authority in accordance with Sections 3-2002
and 3-2003 of the Illinois Vehicle Code.
The Department shall immediately pay over to the State
Treasurer, ex officio, as trustee, all taxes collected
hereunder.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for
sales within a STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to the Authority. The
amount to be paid to the Authority shall be the amount
collected hereunder during the second preceding calendar month
by the Department, less any amount determined by the
Department to be necessary for the payment of refunds, and
less any amounts that are transferred to the STAR Bonds
Revenue Fund. Within 10 days after receipt by the Comptroller
of the disbursement certification to the Authority provided
for in this Section to be given to the Comptroller by the

SB3019 Enrolled - 529 - LRB104 20255 HLH 33706 b
Department, the Comptroller shall cause the orders to be drawn
for that amount in accordance with the directions contained in
the certification.
(i) The Board may not impose any other taxes except as it
may from time to time be authorized by law to impose.
(j) A certificate of registration issued by the Department
of Revenue to a retailer under the Retailers' Occupation Tax
Act or under the Service Occupation Tax Act shall permit the
registrant to engage in a business that is taxed under the tax
imposed under paragraphs (b), (e), (f) or (g) of this Section
and no additional registration shall be required under the
tax. A certificate issued under the Use Tax Act or the Service
Use Tax Act shall be applicable with regard to any tax imposed
under paragraph (c) of this Section.
(k) The provisions of any tax imposed under paragraph (c)
of this Section shall conform as closely as may be practicable
to the provisions of the Use Tax Act, including, without
limitation, conformity as to penalties with respect to the tax
imposed and as to the powers of the Department of Revenue to
promulgate and enforce rules and regulations relating to the
administration and enforcement of the provisions of the tax
imposed. The taxes shall be imposed only on use within the
metropolitan region and at rates as provided in the paragraph.
(l) The Board in imposing any tax as provided in
paragraphs (b) and (c) of this Section, shall, after seeking
the advice of the Department of Revenue, provide means for

SB3019 Enrolled - 530 - LRB104 20255 HLH 33706 b
retailers, users or purchasers of motor fuel for purposes
other than those with regard to which the taxes may be imposed
as provided in those paragraphs to receive refunds of taxes
improperly paid, which provisions may be at variance with the
refund provisions as applicable under the Municipal Retailers
Occupation Tax Act. The Department of Revenue may provide for
certificates of registration for users or purchasers of motor
fuel for purposes other than those with regard to which taxes
may be imposed as provided in paragraphs (b) and (c) of this
Section to facilitate the reporting and nontaxability of the
exempt sales or uses.
(m) Any ordinance imposing or discontinuing any tax under
this Section shall be adopted and a certified copy thereof
filed with the Department on or before June 1, whereupon the
Department of Revenue shall proceed to administer and enforce
this Section on behalf of the Authority as of September 1 next
following such adoption and filing. Beginning January 1, 1992,
an ordinance or resolution imposing or discontinuing the tax
hereunder shall be adopted and a certified copy thereof filed
with the Department on or before the first day of July,
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of October next
following such adoption and filing. Beginning January 1, 1993,
an ordinance or resolution imposing, increasing, decreasing,
or discontinuing the tax hereunder shall be adopted and a
certified copy thereof filed with the Department, whereupon

SB3019 Enrolled - 531 - LRB104 20255 HLH 33706 b
the Department shall proceed to administer and enforce this
Section as of the first day of the first month to occur not
less than 60 days following such adoption and filing. Any
ordinance or resolution of the Authority imposing a tax under
this Section and in effect on August 1, 2007 shall remain in
full force and effect and shall be administered by the
Department of Revenue under the terms and conditions and rates
of tax established by such ordinance or resolution until the
Department begins administering and enforcing an increased tax
under this Section as authorized by Public Act 95-708. Any
ordinance or resolution of the Authority imposing a tax under
this Section and in effect on the effective date of this
amendatory Act of the 104th General Assembly shall remain in
full force and effect and shall be administered by the
Department of Revenue under the terms and conditions and rates
of tax established by such ordinance or resolution until the
Department begins administering and enforcing an increased tax
under this Section as authorized by this amendatory Act of the
104th General Assembly. The tax rates authorized by Public Act
95-708 are effective only if imposed by ordinance of the
Authority. The tax rates authorized by this amendatory Act of
the 104th General Assembly are effective only if an ordinance
is approved by the Authority with the affirmative votes of a
simple majority of its then Directors.
(n) Except as otherwise provided in this subsection (n),
the Department of Revenue shall, upon collecting any taxes as

SB3019 Enrolled - 532 - LRB104 20255 HLH 33706 b
provided in this Section, pay the taxes over to the State
Treasurer as trustee for the Authority. The taxes shall be
held in a trust fund outside the State treasury. If an
airport-related purpose has been certified, taxes and
penalties collected in DuPage, Kane, Lake, McHenry and Will
counties on aviation fuel sold on or after December 1, 2019
from the 0.50% of the 0.75% rate shall be immediately paid over
by the Department to the State Treasurer, ex officio, as
trustee, for deposit into the Local Government Aviation Trust
Fund. The Department shall only pay moneys into the Local
Government Aviation Trust Fund under this Act for so long as
the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the Authority. On or before the
25th day of each calendar month, the Department of Revenue
shall prepare and certify to the Comptroller of the State of
Illinois and to the Authority (i) the amount of taxes
collected in each county other than Cook County in the
metropolitan region, (not including, if an airport-related
purpose has been certified, the taxes and penalties collected
from the 0.50% of the 0.75% rate on aviation fuel sold on or
after December 1, 2019 that are deposited into the Local
Government Aviation Trust Fund) (ii) the amount of taxes
collected within the City of Chicago, and (iii) the amount
collected in that portion of Cook County outside of Chicago,
each amount less the amount necessary for the payment of
refunds to taxpayers located in those areas described in items

SB3019 Enrolled - 533 - LRB104 20255 HLH 33706 b
(i), (ii), and (iii), and less 1.5% of the remainder, which
shall be transferred from the trust fund into the Tax
Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the Authority, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this subsection. Within 10 days after receipt by the
Comptroller of the certification of the amounts, the
Comptroller shall cause an order to be drawn for the transfer
of the amount certified into the Tax Compliance and
Administration Fund and the payment of two-thirds of the
amounts certified in item (i) of this subsection to the
Authority and one-third of the amounts certified in item (i)
of this subsection to the respective counties other than Cook
County and the amount certified in items (ii) and (iii) of this
subsection to the Authority.
In addition to the disbursement required by the preceding
paragraph, an allocation shall be made in July 1991 and each
year thereafter to the Authority. The allocation shall be made
in an amount equal to the average monthly distribution during
the preceding calendar year (excluding the 2 months of lowest
receipts) and the allocation shall include the amount of
average monthly distribution from the Northern Illinois
Transit Authority Occupation and Use Tax Replacement Fund. The
distribution made in July 1992 and each year thereafter under
this paragraph and the preceding paragraph shall be reduced by

SB3019 Enrolled - 534 - LRB104 20255 HLH 33706 b
the amount allocated and disbursed under this paragraph in the
preceding calendar year. The Department of Revenue shall
prepare and certify to the Comptroller for disbursement the
allocations made in accordance with this paragraph.
(o) Failure to adopt a budget ordinance or otherwise to
comply with Section 4.01 or to adopt a 5-Year Capital Program
or otherwise to comply with paragraph (b) of Section 2.01 of
this Act shall not affect the validity of any tax imposed by
the Authority otherwise in conformity with law.
(p) At no time shall a public transportation tax or motor
vehicle parking tax authorized under paragraphs (b), (c), and
(d) of this Section be in effect at the same time as any
retailers' occupation, use or service occupation tax
authorized under paragraphs (e), (f), and (g) of this Section
is in effect.
Any taxes imposed under the authority provided in
paragraphs (b), (c), and (d) shall remain in effect only until
the time as any tax authorized by paragraph (e), (f), or (g) of
this Section is imposed and becomes effective. Once any tax
authorized by paragraph (e), (f), or (g) is imposed the Board
may not reimpose taxes as authorized in paragraphs (b), (c),
and (d) of the Section unless any tax authorized by paragraph
(e), (f), or (g) of this Section becomes ineffective by means
other than an ordinance of the Board.
(q) Any existing rights, remedies and obligations
(including enforcement by the Authority) arising under any tax

SB3019 Enrolled - 535 - LRB104 20255 HLH 33706 b
imposed under paragraph (b), (c), or (d) of this Section shall
not be affected by the imposition of a tax under paragraph (e),
(f), or (g) of this Section.
(r) The Board shall hold a vote on whether to adopt an
ordinance to increase the tax rate to the rates authorized by
this amendatory Act of the 104th General Assembly within 60
days of the effective date of this amendatory Act of the 104th
General Assembly.
(Source: P.A. 103-592, eff. 1-1-25; 103-781, eff. 8-5-24;
104-6, eff. 1-1-26; 104-417, eff. 8-15-25; 104-457, eff.
6-1-26.)
Section 70-105. The Water Commission Act of 1985 is
amended by changing Section 4 as follows:
(70 ILCS 3720/4) (from Ch. 111 2/3, par. 254)
(Text of Section before amendment by P.A. 104-457)
Sec. 4. Taxes.
(a) The board of commissioners of any county water
commission may, by ordinance, impose throughout the territory
of the commission any or all of the taxes provided in this
Section for its corporate purposes. However, no county water
commission may impose any such tax unless the commission
certifies the proposition of imposing the tax to the proper
election officials, who shall submit the proposition to the
voters residing in the territory at an election in accordance

SB3019 Enrolled - 536 - LRB104 20255 HLH 33706 b
with the general election law, and the proposition has been
approved by a majority of those voting on the proposition.
The proposition shall be in the form provided in Section 5
or shall be substantially in the following form:
-------------
Shall the (insert corporate
name of county water commission) YES
impose (state type of tax or ------------------------
taxes to be imposed) at the NO
rate of 1/4%?
-------------------------------------------------------------
Taxes imposed under this Section and civil penalties
imposed incident thereto shall be collected and enforced by
the State Department of Revenue. The Department shall have the
power to administer and enforce the taxes and to determine all
rights for refunds for erroneous payments of the taxes.
(b) The board of commissioners may impose a County Water
Commission Retailers' Occupation Tax upon all persons engaged
in the business of selling tangible personal property at
retail in the territory of the commission at a rate of 1/4% of
the gross receipts from the sales made in the course of such
business within the territory. Beginning January 1, 2021, this
tax is not imposed on sales of aviation fuel for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the District.
The tax imposed under this paragraph and all civil

SB3019 Enrolled - 537 - LRB104 20255 HLH 33706 b
penalties that may be assessed as an incident thereof shall be
collected and enforced by the State Department of Revenue. The
Department shall have full power to administer and enforce
this paragraph; to collect all taxes and penalties due
hereunder; to dispose of taxes and penalties so collected in
the manner hereinafter provided; and to determine all rights
to credit memoranda arising on account of the erroneous
payment of tax or penalty hereunder. In the administration of,
and compliance with, this paragraph, the Department and
persons who are subject to this paragraph shall have the same
rights, remedies, privileges, immunities, powers and duties,
and be subject to the same conditions, restrictions,
limitations, penalties, exclusions, exemptions and definitions
of terms, and employ the same modes of procedure, as are
prescribed in Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2
through 2-65 (in respect to all provisions therein other than
the State rate of tax except that tangible personal property
taxed at the 1% rate under the Retailers' Occupation Tax Act
shall not be subject to tax hereunder), 2c, 3 (except as to the
disposition of taxes and penalties collected, and except that
the retailer's discount is not allowed for taxes paid on
aviation fuel sold on or after December 1, 2019 and through
December 31, 2020), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
5j, 5k, 5l, 5m, 5n, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12, and
13 of the Retailers' Occupation Tax Act and Section 3-7 of the
Uniform Penalty and Interest Act, as fully as if those

SB3019 Enrolled - 538 - LRB104 20255 HLH 33706 b
provisions were set forth herein.
Persons subject to any tax imposed under the authority
granted in this paragraph may reimburse themselves for their
seller's tax liability hereunder by separately stating the tax
as an additional charge, which charge may be stated in
combination, in a single amount, with State taxes that sellers
are required to collect under the Use Tax Act and under
subsection (e) of Section 4.03 of the Regional Transportation
Authority Act, in accordance with such bracket schedules as
the Department may prescribe.
Whenever the Department determines that a refund should be
made under this paragraph to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of a county water commission tax fund
established under subsection (g) of this Section.
For the purpose of determining whether a tax authorized
under this paragraph is applicable, a retail sale by a
producer of coal or other mineral mined in Illinois is a sale
at retail at the place where the coal or other mineral mined in
Illinois is extracted from the earth. This paragraph does not
apply to coal or other mineral when it is delivered or shipped
by the seller to the purchaser at a point outside Illinois so
that the sale is exempt under the Federal Constitution as a

SB3019 Enrolled - 539 - LRB104 20255 HLH 33706 b
sale in interstate or foreign commerce.
If a tax is imposed under this subsection (b), a tax shall
also be imposed under subsections (c) and (d) of this Section.
No tax shall be imposed or collected under this subsection
on the sale of a motor vehicle in this State to a resident of
another state if that motor vehicle will not be titled in this
State.
Nothing in this paragraph shall be construed to authorize
a county water commission to impose a tax upon the privilege of
engaging in any business which under the Constitution of the
United States may not be made the subject of taxation by this
State.
(c) If a tax has been imposed under subsection (b), a
County Water Commission Service Occupation Tax shall also be
imposed upon all persons engaged, in the territory of the
commission, in the business of making sales of service, who,
as an incident to making the sales of service, transfer
tangible personal property within the territory. The tax rate
shall be 1/4% of the selling price of tangible personal
property so transferred within the territory. Beginning
January 1, 2021, this tax is not imposed on sales of aviation
fuel for so long as the revenue use requirements of 49 U.S.C.
47107(b) and 49 U.S.C. 47133 are binding on the District.
The tax imposed under this paragraph and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the State Department of Revenue. The

SB3019 Enrolled - 540 - LRB104 20255 HLH 33706 b
Department shall have full power to administer and enforce
this paragraph; to collect all taxes and penalties due
hereunder; to dispose of taxes and penalties so collected in
the manner hereinafter provided; and to determine all rights
to credit memoranda arising on account of the erroneous
payment of tax or penalty hereunder. In the administration of,
and compliance with, this paragraph, the Department and
persons who are subject to this paragraph shall have the same
rights, remedies, privileges, immunities, powers and duties,
and be subject to the same conditions, restrictions,
limitations, penalties, exclusions, exemptions and definitions
of terms, and employ the same modes of procedure, as are
prescribed in Sections 1a-1, 2 (except that the reference to
State in the definition of supplier maintaining a place of
business in this State shall mean the territory of the
commission), 2a, 3 through 3-50 (in respect to all provisions
therein other than the State rate of tax except that tangible
personal property taxed at the 1% rate under the Service
Occupation Tax Act shall not be subject to tax hereunder), 4
(except that the reference to the State shall be to the
territory of the commission), 5, 7, 8 (except that the
jurisdiction to which the tax shall be a debt to the extent
indicated in that Section 8 shall be the commission), 9
(except as to the disposition of taxes and penalties collected
and except that the returned merchandise credit for this tax
may not be taken against any State tax, and except that the

SB3019 Enrolled - 541 - LRB104 20255 HLH 33706 b
retailer's discount is not allowed for taxes paid on aviation
fuel sold on or after December 1, 2019 and through December 31,
2020), 10, 11, 12 (except the reference therein to Section 2b
of the Retailers' Occupation Tax Act), 13 (except that any
reference to the State shall mean the territory of the
commission), the first paragraph of Section 15, 15.5, 16, 17,
18, 19, and 20 of the Service Occupation Tax Act as fully as if
those provisions were set forth herein.
Persons subject to any tax imposed under the authority
granted in this paragraph may reimburse themselves for their
serviceman's tax liability hereunder by separately stating the
tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax that
servicemen are authorized to collect under the Service Use Tax
Act, and any tax for which servicemen may be liable under
subsection (f) of Section 4.03 of the Regional Transportation
Authority Act, in accordance with such bracket schedules as
the Department may prescribe.
Whenever the Department determines that a refund should be
made under this paragraph to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of a county water commission tax fund
established under subsection (g) of this Section.

SB3019 Enrolled - 542 - LRB104 20255 HLH 33706 b
Nothing in this paragraph shall be construed to authorize
a county water commission to impose a tax upon the privilege of
engaging in any business which under the Constitution of the
United States may not be made the subject of taxation by the
State.
(d) If a tax has been imposed under subsection (b), a tax
shall also be imposed upon the privilege of using, in the
territory of the commission, any item of tangible personal
property that is purchased outside the territory at retail
from a retailer, and that is titled or registered with an
agency of this State's government, at a rate of 1/4% of the
selling price of the tangible personal property within the
territory, as "selling price" is defined in the Use Tax Act.
The tax shall be collected from persons whose Illinois address
for titling or registration purposes is given as being in the
territory. The tax shall be collected by the Department of
Revenue for a county water commission. The tax must be paid to
the State, or an exemption determination must be obtained from
the Department of Revenue, before the title or certificate of
registration for the property may be issued. The tax or proof
of exemption may be transmitted to the Department by way of the
State agency with which, or the State officer with whom, the
tangible personal property must be titled or registered if the
Department and the State agency or State officer determine
that this procedure will expedite the processing of
applications for title or registration.

SB3019 Enrolled - 543 - LRB104 20255 HLH 33706 b
The Department shall have full power to administer and
enforce this paragraph; to collect all taxes, penalties, and
interest due hereunder; to dispose of taxes, penalties, and
interest so collected in the manner hereinafter provided; and
to determine all rights to credit memoranda or refunds arising
on account of the erroneous payment of tax, penalty, or
interest hereunder. In the administration of and compliance
with this paragraph, the Department and persons who are
subject to this paragraph shall have the same rights,
remedies, privileges, immunities, powers, and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions, and definitions of terms
and employ the same modes of procedure, as are prescribed in
Sections 2 (except the definition of "retailer maintaining a
place of business in this State"), 3 through 3-80 (except
provisions pertaining to the State rate of tax, and except
provisions concerning collection or refunding of the tax by
retailers), 4, 11, 12, 12a, 14, 15, 19 (except the portions
pertaining to claims by retailers and except the last
paragraph concerning refunds), 20, 21, and 22 of the Use Tax
Act and Section 3-7 of the Uniform Penalty and Interest Act
that are not inconsistent with this paragraph, as fully as if
those provisions were set forth herein.
Whenever the Department determines that a refund should be
made under this paragraph to a claimant instead of issuing a
credit memorandum, the Department shall notify the State

SB3019 Enrolled - 544 - LRB104 20255 HLH 33706 b
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of a county water commission tax fund
established under subsection (g) of this Section.
(e) A certificate of registration issued by the State
Department of Revenue to a retailer under the Retailers'
Occupation Tax Act or under the Service Occupation Tax Act
shall permit the registrant to engage in a business that is
taxed under the tax imposed under subsection (b), (c), or (d)
of this Section and no additional registration shall be
required under the tax. A certificate issued under the Use Tax
Act or the Service Use Tax Act shall be applicable with regard
to any tax imposed under subsection (c) of this Section.
(f) Any ordinance imposing or discontinuing any tax under
this Section shall be adopted and a certified copy thereof
filed with the Department on or before June 1, whereupon the
Department of Revenue shall proceed to administer and enforce
this Section on behalf of the county water commission as of
September 1 next following the adoption and filing. Beginning
January 1, 1992, an ordinance or resolution imposing or
discontinuing the tax hereunder shall be adopted and a
certified copy thereof filed with the Department on or before
the first day of July, whereupon the Department shall proceed
to administer and enforce this Section as of the first day of
October next following such adoption and filing. Beginning

SB3019 Enrolled - 545 - LRB104 20255 HLH 33706 b
January 1, 1993, an ordinance or resolution imposing or
discontinuing the tax hereunder shall be adopted and a
certified copy thereof filed with the Department on or before
the first day of October, whereupon the Department shall
proceed to administer and enforce this Section as of the first
day of January next following such adoption and filing.
(g) The State Department of Revenue shall, upon collecting
any taxes as provided in this Section, pay the taxes over to
the State Treasurer as trustee for the commission. The taxes
shall be held in a trust fund outside the State Treasury.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for
sales within a STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the State
Department of Revenue shall prepare and certify to the
Comptroller of the State of Illinois the amount to be paid to
the commission, which shall be the amount (not including
credit memoranda) collected under this Section during the
second preceding calendar month by the Department plus an
amount the Department determines is necessary to offset any

SB3019 Enrolled - 546 - LRB104 20255 HLH 33706 b
amounts that were erroneously paid to a different taxing body,
and not including any amount equal to the amount of refunds
made during the second preceding calendar month by the
Department on behalf of the commission, and not including any
amount that the Department determines is necessary to offset
any amounts that were payable to a different taxing body but
were erroneously paid to the commission, and less any amounts
that are transferred to the STAR Bonds Revenue Fund, less 1.5%
of the remainder, which shall be transferred into the Tax
Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the commission, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this subsection. Within 10 days after receipt by the
Comptroller of the certification of the amount to be paid to
the commission and the Tax Compliance and Administration Fund,
the Comptroller shall cause an order to be drawn for the
payment for the amount in accordance with the direction in the
certification.
(h) Beginning June 1, 2016, any tax imposed pursuant to
this Section may no longer be imposed or collected, unless a
continuation of the tax is approved by the voters at a
referendum as set forth in this Section.
(Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18;
100-863, eff. 8-14-18; 100-1171, eff. 1-4-19; 101-10, eff.
6-5-19; 101-81, eff. 7-12-19; 101-604, eff. 12-13-19.)

SB3019 Enrolled - 547 - LRB104 20255 HLH 33706 b
(Text of Section after amendment by P.A. 104-457)
Sec. 4. Taxes.
(a) The board of commissioners of any county water
commission may, by ordinance, impose throughout the territory
of the commission any or all of the taxes provided in this
Section for its corporate purposes. However, no county water
commission may impose any such tax unless the commission
certifies the proposition of imposing the tax to the proper
election officials, who shall submit the proposition to the
voters residing in the territory at an election in accordance
with the general election law, and the proposition has been
approved by a majority of those voting on the proposition.
The proposition shall be in the form provided in Section 5
or shall be substantially in the following form:
-------------
Shall the (insert corporate
name of county water commission) YES
impose (state type of tax or ------------------------
taxes to be imposed) at the NO
rate of 1/4%?
-------------------------------------------------------------
Taxes imposed under this Section and civil penalties
imposed incident thereto shall be collected and enforced by
the State Department of Revenue. The Department shall have the
power to administer and enforce the taxes and to determine all

SB3019 Enrolled - 548 - LRB104 20255 HLH 33706 b
rights for refunds for erroneous payments of the taxes.
(b) The board of commissioners may impose a County Water
Commission Retailers' Occupation Tax upon all persons engaged
in the business of selling tangible personal property at
retail in the territory of the commission at a rate of 1/4% of
the gross receipts from the sales made in the course of such
business within the territory. Beginning January 1, 2021, this
tax is not imposed on sales of aviation fuel for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the District.
The tax imposed under this paragraph and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the State Department of Revenue. The
Department shall have full power to administer and enforce
this paragraph; to collect all taxes and penalties due
hereunder; to dispose of taxes and penalties so collected in
the manner hereinafter provided; and to determine all rights
to credit memoranda arising on account of the erroneous
payment of tax or penalty hereunder. In the administration of,
and compliance with, this paragraph, the Department and
persons who are subject to this paragraph shall have the same
rights, remedies, privileges, immunities, powers and duties,
and be subject to the same conditions, restrictions,
limitations, penalties, exclusions, exemptions and definitions
of terms, and employ the same modes of procedure, as are
prescribed in Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2

SB3019 Enrolled - 549 - LRB104 20255 HLH 33706 b
through 2-65 (in respect to all provisions therein other than
the State rate of tax except that tangible personal property
taxed at the 1% rate under the Retailers' Occupation Tax Act
shall not be subject to tax hereunder), 2c, 3 (except as to the
disposition of taxes and penalties collected, and except that
the retailer's discount is not allowed for taxes paid on
aviation fuel sold on or after December 1, 2019 and through
December 31, 2020), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
5j, 5k, 5l, 5m, 5n, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12, and
13 of the Retailers' Occupation Tax Act and Section 3-7 of the
Uniform Penalty and Interest Act, as fully as if those
provisions were set forth herein.
Persons subject to any tax imposed under the authority
granted in this paragraph may reimburse themselves for their
seller's tax liability hereunder by separately stating the tax
as an additional charge, which charge may be stated in
combination, in a single amount, with State taxes that sellers
are required to collect under the Use Tax Act and under
subsection (e) of Section 4.03 of the Northern Illinois
Transit Authority Act, in accordance with such bracket
schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this paragraph to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification

SB3019 Enrolled - 550 - LRB104 20255 HLH 33706 b
from the Department. The refund shall be paid by the State
Treasurer out of a county water commission tax fund
established under subsection (g) of this Section.
For the purpose of determining whether a tax authorized
under this paragraph is applicable, a retail sale by a
producer of coal or other mineral mined in Illinois is a sale
at retail at the place where the coal or other mineral mined in
Illinois is extracted from the earth. This paragraph does not
apply to coal or other mineral when it is delivered or shipped
by the seller to the purchaser at a point outside Illinois so
that the sale is exempt under the Federal Constitution as a
sale in interstate or foreign commerce.
If a tax is imposed under this subsection (b), a tax shall
also be imposed under subsections (c) and (d) of this Section.
No tax shall be imposed or collected under this subsection
on the sale of a motor vehicle in this State to a resident of
another state if that motor vehicle will not be titled in this
State.
Nothing in this paragraph shall be construed to authorize
a county water commission to impose a tax upon the privilege of
engaging in any business which under the Constitution of the
United States may not be made the subject of taxation by this
State.
(c) If a tax has been imposed under subsection (b), a
County Water Commission Service Occupation Tax shall also be
imposed upon all persons engaged, in the territory of the

SB3019 Enrolled - 551 - LRB104 20255 HLH 33706 b
commission, in the business of making sales of service, who,
as an incident to making the sales of service, transfer
tangible personal property within the territory. The tax rate
shall be 1/4% of the selling price of tangible personal
property so transferred within the territory. Beginning
January 1, 2021, this tax is not imposed on sales of aviation
fuel for so long as the revenue use requirements of 49 U.S.C.
47107(b) and 49 U.S.C. 47133 are binding on the District.
The tax imposed under this paragraph and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the State Department of Revenue. The
Department shall have full power to administer and enforce
this paragraph; to collect all taxes and penalties due
hereunder; to dispose of taxes and penalties so collected in
the manner hereinafter provided; and to determine all rights
to credit memoranda arising on account of the erroneous
payment of tax or penalty hereunder. In the administration of,
and compliance with, this paragraph, the Department and
persons who are subject to this paragraph shall have the same
rights, remedies, privileges, immunities, powers and duties,
and be subject to the same conditions, restrictions,
limitations, penalties, exclusions, exemptions and definitions
of terms, and employ the same modes of procedure, as are
prescribed in Sections 1a-1, 2 (except that the reference to
State in the definition of supplier maintaining a place of
business in this State shall mean the territory of the

SB3019 Enrolled - 552 - LRB104 20255 HLH 33706 b
commission), 2a, 3 through 3-50 (in respect to all provisions
therein other than the State rate of tax except that tangible
personal property taxed at the 1% rate under the Service
Occupation Tax Act shall not be subject to tax hereunder), 4
(except that the reference to the State shall be to the
territory of the commission), 5, 7, 8 (except that the
jurisdiction to which the tax shall be a debt to the extent
indicated in that Section 8 shall be the commission), 9
(except as to the disposition of taxes and penalties collected
and except that the returned merchandise credit for this tax
may not be taken against any State tax, and except that the
retailer's discount is not allowed for taxes paid on aviation
fuel sold on or after December 1, 2019 and through December 31,
2020), 10, 11, 12 (except the reference therein to Section 2b
of the Retailers' Occupation Tax Act), 13 (except that any
reference to the State shall mean the territory of the
commission), the first paragraph of Section 15, 15.5, 16, 17,
18, 19, and 20 of the Service Occupation Tax Act as fully as if
those provisions were set forth herein.
Persons subject to any tax imposed under the authority
granted in this paragraph may reimburse themselves for their
serviceman's tax liability hereunder by separately stating the
tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax that
servicemen are authorized to collect under the Service Use Tax
Act, and any tax for which servicemen may be liable under

SB3019 Enrolled - 553 - LRB104 20255 HLH 33706 b
subsection (f) of Section 4.03 of the Northern Illinois
Transit Authority Act, in accordance with such bracket
schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this paragraph to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of a county water commission tax fund
established under subsection (g) of this Section.
Nothing in this paragraph shall be construed to authorize
a county water commission to impose a tax upon the privilege of
engaging in any business which under the Constitution of the
United States may not be made the subject of taxation by the
State.
(d) If a tax has been imposed under subsection (b), a tax
shall also be imposed upon the privilege of using, in the
territory of the commission, any item of tangible personal
property that is purchased outside the territory at retail
from a retailer, and that is titled or registered with an
agency of this State's government, at a rate of 1/4% of the
selling price of the tangible personal property within the
territory, as "selling price" is defined in the Use Tax Act.
The tax shall be collected from persons whose Illinois address
for titling or registration purposes is given as being in the

SB3019 Enrolled - 554 - LRB104 20255 HLH 33706 b
territory. The tax shall be collected by the Department of
Revenue for a county water commission. The tax must be paid to
the State, or an exemption determination must be obtained from
the Department of Revenue, before the title or certificate of
registration for the property may be issued. The tax or proof
of exemption may be transmitted to the Department by way of the
State agency with which, or the State officer with whom, the
tangible personal property must be titled or registered if the
Department and the State agency or State officer determine
that this procedure will expedite the processing of
applications for title or registration.
The Department shall have full power to administer and
enforce this paragraph; to collect all taxes, penalties, and
interest due hereunder; to dispose of taxes, penalties, and
interest so collected in the manner hereinafter provided; and
to determine all rights to credit memoranda or refunds arising
on account of the erroneous payment of tax, penalty, or
interest hereunder. In the administration of and compliance
with this paragraph, the Department and persons who are
subject to this paragraph shall have the same rights,
remedies, privileges, immunities, powers, and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions, and definitions of terms
and employ the same modes of procedure, as are prescribed in
Sections 2 (except the definition of "retailer maintaining a
place of business in this State"), 3 through 3-80 (except

SB3019 Enrolled - 555 - LRB104 20255 HLH 33706 b
provisions pertaining to the State rate of tax, and except
provisions concerning collection or refunding of the tax by
retailers), 4, 11, 12, 12a, 14, 15, 19 (except the portions
pertaining to claims by retailers and except the last
paragraph concerning refunds), 20, 21, and 22 of the Use Tax
Act and Section 3-7 of the Uniform Penalty and Interest Act
that are not inconsistent with this paragraph, as fully as if
those provisions were set forth herein.
Whenever the Department determines that a refund should be
made under this paragraph to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of a county water commission tax fund
established under subsection (g) of this Section.
(e) A certificate of registration issued by the State
Department of Revenue to a retailer under the Retailers'
Occupation Tax Act or under the Service Occupation Tax Act
shall permit the registrant to engage in a business that is
taxed under the tax imposed under subsection (b), (c), or (d)
of this Section and no additional registration shall be
required under the tax. A certificate issued under the Use Tax
Act or the Service Use Tax Act shall be applicable with regard
to any tax imposed under subsection (c) of this Section.
(f) Any ordinance imposing or discontinuing any tax under

SB3019 Enrolled - 556 - LRB104 20255 HLH 33706 b
this Section shall be adopted and a certified copy thereof
filed with the Department on or before June 1, whereupon the
Department of Revenue shall proceed to administer and enforce
this Section on behalf of the county water commission as of
September 1 next following the adoption and filing. Beginning
January 1, 1992, an ordinance or resolution imposing or
discontinuing the tax hereunder shall be adopted and a
certified copy thereof filed with the Department on or before
the first day of July, whereupon the Department shall proceed
to administer and enforce this Section as of the first day of
October next following such adoption and filing. Beginning
January 1, 1993, an ordinance or resolution imposing or
discontinuing the tax hereunder shall be adopted and a
certified copy thereof filed with the Department on or before
the first day of October, whereupon the Department shall
proceed to administer and enforce this Section as of the first
day of January next following such adoption and filing.
(g) The State Department of Revenue shall, upon collecting
any taxes as provided in this Section, pay the taxes over to
the State Treasurer as trustee for the commission. The taxes
shall be held in a trust fund outside the State treasury.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined

SB3019 Enrolled - 557 - LRB104 20255 HLH 33706 b
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for
sales within a STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the State
Department of Revenue shall prepare and certify to the
Comptroller of the State of Illinois the amount to be paid to
the commission, which shall be the amount (not including
credit memoranda) collected under this Section during the
second preceding calendar month by the Department plus an
amount the Department determines is necessary to offset any
amounts that were erroneously paid to a different taxing body,
and not including any amount equal to the amount of refunds
made during the second preceding calendar month by the
Department on behalf of the commission, and not including any
amount that the Department determines is necessary to offset
any amounts that were payable to a different taxing body but
were erroneously paid to the commission, and less any amounts
that are transferred to the STAR Bonds Revenue Fund, less 1.5%
of the remainder, which shall be transferred into the Tax
Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the commission, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this subsection. Within 10 days after receipt by the
Comptroller of the certification of the amount to be paid to

SB3019 Enrolled - 558 - LRB104 20255 HLH 33706 b
the commission and the Tax Compliance and Administration Fund,
the Comptroller shall cause an order to be drawn for the
payment for the amount in accordance with the direction in the
certification.
(h) Beginning June 1, 2016, any tax imposed pursuant to
this Section may no longer be imposed or collected, unless a
continuation of the tax is approved by the voters at a
referendum as set forth in this Section.
(Source: P.A. 104-457, eff. 6-1-26.)
Section 70-110. The Illinois Insurance Code is amended by
changing Section 414a as follows:
(215 ILCS 5/414a) (from Ch. 73, par. 1026a)
Sec. 414a. Notwithstanding the provisions of this or any
other Act, the tax authorized by Section 414 of this Act shall
not be imposed after January 1, 1979; provided that this
Section shall not prohibit the collection after January 1,
1979 of any taxes levied under Section 414 prior to January 1,
1979, on property subject to assessment and taxation under
Section 414 of this Act prior to January 1, 1979. For the
purpose of replacing the revenue lost by taxing districts, as
defined in Section 1-150 of the Property Tax Code, as a result
of the abolition of ad valorem taxes on personal property
after January 1, 1979, there shall be imposed the taxes
described in Section 201(c) and (d) of the Illinois Income Tax

SB3019 Enrolled - 559 - LRB104 20255 HLH 33706 b
Act, Section 2a.1 of the Messages Tax Act, Section 2a.1 of the
Gas Revenue Tax Act, Section 2a.1 of the Public Utilities
Revenue Act, and Section 1 of the Water Company Invested
Capital Tax Act. Such replacement taxes owed within one year
of the effective date of the taxes established by this
amendatory Act of 1979 shall replace the personal property tax
levies of 1979. The replacement taxes owed in each succeeding
year shall replace the personal property tax that could have
been levied in each succeeding year.
(Source: P.A. 88-670, eff. 12-2-94.)
Section 70-115. The Public Utilities Act is amended by
changing Section 9-222 as follows:
(220 ILCS 5/9-222) (from Ch. 111 2/3, par. 9-222)
Sec. 9-222. Whenever a tax is imposed upon a public
utility engaged in the business of distributing, supplying,
furnishing, or selling gas for use or consumption pursuant to
Section 2 of the Gas Revenue Tax Act, or whenever a tax is
required to be collected by a delivering supplier pursuant to
Section 2-7 of the Electricity Excise Tax Act, or whenever a
tax is imposed upon a public utility pursuant to Section 2-202
of this Act, such utility may charge its customers, other than
customers who are high impact businesses under Section 5.5 of
the Illinois Enterprise Zone Act, customers who are certified
under Section 95 of the Reimagining Energy and Vehicles in

SB3019 Enrolled - 560 - LRB104 20255 HLH 33706 b
Illinois Act, manufacturers under the Manufacturing Illinois
Chips for Real Opportunity (MICRO) Act, customers who are
tenants in a quantum computing campus under Section 605-1115
of the Department of Commerce and Economic Opportunity Law of
the Civil Administrative Code of Illinois, or certified
business enterprises under Section 9-222.1 of this Act, to the
extent of such exemption and during the period in which such
exemption is in effect, in addition to any rate authorized by
this Act, an additional charge equal to the total amount of
such taxes. The exemption of this Section relating to high
impact businesses shall be subject to the provisions of
subsections (a), (b), and (b-5) of Section 5.5 of the Illinois
Enterprise Zone Act. This requirement shall not apply to taxes
on invested capital imposed pursuant to the Messages Tax Act,
the Gas Revenue Tax Act and the Public Utilities Revenue Act.
Such utility shall file with the Commission a supplemental
schedule which shall specify such additional charge and which
shall become effective upon filing without further notice.
Such additional charge shall be shown separately on the
utility bill to each customer. The Commission shall have the
power to investigate whether or not such supplemental schedule
correctly specifies such additional charge, but shall have no
power to suspend such supplemental schedule. If the Commission
finds, after a hearing, that such supplemental schedule does
not correctly specify such additional charge, it shall by
order require a refund to the appropriate customers of the

SB3019 Enrolled - 561 - LRB104 20255 HLH 33706 b
excess, if any, with interest, in such manner as it shall deem
just and reasonable, and in and by such order shall require the
utility to file an amended supplemental schedule corresponding
to the finding and order of the Commission. Except with
respect to taxes imposed on invested capital, such tax
liabilities shall be recovered from customers solely by means
of the additional charges authorized by this Section.
(Source: P.A. 102-669, eff. 11-16-21; 102-700, eff. 4-19-22;
102-1125, eff. 2-3-23; 103-595, eff. 6-26-24.)
Section 70-120. The Illinois Pull Tabs and Jar Games Act
is amended by changing Section 5 as follows:
(230 ILCS 20/5) (from Ch. 120, par. 1055)
Sec. 5. Payments; returns. There shall be paid to the
Department of Revenue 5% of the gross proceeds of any pull tabs
and jar games conducted under this Act. Such payments shall be
made 4 times per year, between the first and the 20th day of
April, July, October and January. Accompanying each payment
shall be a return, on forms prescribed by the Department of
Revenue. Failure to submit either the payment or the return
within the specified time shall result in suspension or
revocation of the license. Tax returns filed pursuant to this
Act shall not be confidential and shall be available for
public inspection. All payments made to the Department of
Revenue under this Act shall be deposited as follows:

SB3019 Enrolled - 562 - LRB104 20255 HLH 33706 b
(a) 50% shall be deposited in the Common School Fund;
and
(b) 50% shall be deposited in the Illinois Gaming Law
Enforcement Fund. Of the monies deposited in the Illinois
Gaming Law Enforcement Fund under this Section, the
General Assembly shall appropriate two-thirds to the
Department of Revenue, Illinois State Police and the
Office of the Attorney General for State law enforcement
purposes, and one-third shall be appropriated to the
Department of Revenue for the purpose of distribution in
the form of grants to counties or municipalities for law
enforcement purposes. The amounts of grants to counties or
municipalities shall bear the same ratio as the number of
licenses issued in counties or municipalities bears to the
total number of licenses issued in the State. In computing
the number of licenses issued in a county, licenses issued
for locations within a municipality's boundaries shall be
excluded.
The provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,
5g, 5h, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, 10, 11 and 12 of the
Retailers' Occupation Tax Act, and Section 3-7 of the Uniform
Penalty and Interest Act, which are not inconsistent with this
Act shall apply, as far as practicable, to the subject matter
of this Act to the same extent as if such provisions were
included in this Act. For the purposes of this Act, references
in such incorporated Sections of the Retailers' Occupation Tax

SB3019 Enrolled - 563 - LRB104 20255 HLH 33706 b
Act to retailers, sellers or persons engaged in the business
of selling tangible personal property means persons engaged in
conducting pull tabs and jar games and references in such
incorporated Sections of the Retailers' Occupation Tax Act to
sales of tangible personal property mean the conducting of
pull tabs and jar games and the making of charges for
participating in such drawings.
If any payment provided for in this Section exceeds the
taxpayer's liabilities under this Act, as shown on an original
return, the taxpayer may credit such excess payment against
liability subsequently to be remitted to the Department under
this Act, in accordance with reasonable rules adopted by the
Department.
(Source: P.A. 102-538, eff. 8-20-21.)
Section 70-125. The Liquor Control Act of 1934 is amended
by changing Section 8-14 as follows:
(235 ILCS 5/8-14) (from Ch. 43, par. 165a)
Sec. 8-14. All of the provisions of Sections 5a, 5b, 5c,
5d, 5e, 5f, 5g, 5h, 5i and 5j of the Retailers' Occupation Tax
Act and Section 3-7 of the Uniform Penalty and Interest Act,
are by reference incorporated in and made a part of this
Article VIII as fully as though written herein; provided that
wherever in those Sections of the Retailers' Occupation Tax
Act, reference is made to a "retailer" such reference shall,

SB3019 Enrolled - 564 - LRB104 20255 HLH 33706 b
for the purposes of this Article, be deemed to refer to a
licensee under this Act.
(Source: P.A. 87-205.)
Section 70-130. The Cannabis Regulation and Tax Act is
amended by changing Section 65-40 as follows:
(410 ILCS 705/65-40)
Sec. 65-40. Department administration and enforcement. The
Department shall have full power to administer and enforce
this Article, to collect all taxes and penalties due
hereunder, to dispose of taxes and penalties so collected in
the manner hereinafter provided, and to determine all rights
to credit memoranda, arising on account of the erroneous
payment of tax or penalty hereunder.
In the administration of, and compliance with, this
Article, the Department and persons who are subject to this
Article shall have the same rights, remedies, privileges,
immunities, powers, and duties, and be subject to the same
conditions, restrictions, limitations, penalties, and
definitions of terms, and employ the same modes of procedure,
as are prescribed in Sections 2, 3-55, 3a, 4, 5, 7, 10a, 11,
12a, 12b, 14, 15, 19, 20, 21, and 22 of the Use Tax Act and
Sections 1, 2-12, 2b, 4 (except that the time limitation
provisions shall run from the date when the tax is due rather
than from the date when gross receipts are received), 5

SB3019 Enrolled - 565 - LRB104 20255 HLH 33706 b
(except that the time limitation provisions on the issuance of
notices of tax liability shall run from the date when the tax
is due rather than from the date when gross receipts are
received and except that in the case of a failure to file a
return required by this Act, no notice of tax liability shall
be issued on and after each July 1 and January 1 covering tax
due with that return during any month or period more than 6
years before that July 1 or January 1, respectively), 5a, 5b,
5c, 5d, 5e, 5f, 5g, 5h, 5j, 6d, 7, 8, 9, 10, 11, and 12 of the
Retailers' Occupation Tax Act and all of the provisions of the
Uniform Penalty and Interest Act, which are not inconsistent
with this Article, as fully as if those provisions were set
forth herein. References in the incorporated Sections of the
Retailers' Occupation Tax Act and the Use Tax Act to
retailers, to sellers, or to persons engaged in the business
of selling tangible personal property mean cannabis retailers
when used in this Article. References in the incorporated
Sections to sales of tangible personal property mean sales of
cannabis subject to tax under this Article when used in this
Article.
(Source: P.A. 101-27, eff. 6-25-19.)
Section 70-135. The Illinois Vehicle Code is amended by
changing Section 3-1001 as follows:
(625 ILCS 5/3-1001) (from Ch. 95 1/2, par. 3-1001)

SB3019 Enrolled - 566 - LRB104 20255 HLH 33706 b
Sec. 3-1001. A tax is hereby imposed on the privilege of
using, in this State, any motor vehicle as defined in Section
1-146 of this Code acquired by gift, transfer, or purchase,
and having a year model designation preceding the year of
application for title by 5 or fewer years prior to October 1,
1985 and 10 or fewer years on and after October 1, 1985 and
prior to January 1, 1988. On and after January 1, 1988, the tax
shall apply to all motor vehicles without regard to model
year. Except that the tax shall not apply:
(i) if the use of the motor vehicle is otherwise taxed
under the Use Tax Act;
(ii) if the use of the motor vehicle is not subject to
the Use Tax Act by reason of Section 3-5 of that Act bought
and used by a governmental agency or a society,
association, foundation or institution organized and
operated exclusively for charitable, religious or
educational purposes;
(iii) if the use of the motor vehicle is not subject to
the Use Tax Act by reason of subsection (a), (b), (c), (d),
(e) or (f) of Section 3-55 of that Act dealing with the
prevention of actual or likely multistate taxation;
(iv) to implements of husbandry;
(v) when a junking certificate is issued pursuant to
Section 3-117(a) of this Code;
(vi) when a vehicle is subject to the replacement
vehicle tax imposed by Section 3-2001 of this Act;

SB3019 Enrolled - 567 - LRB104 20255 HLH 33706 b
(vii) when the transfer is a gift to a beneficiary in
the administration of an estate and the beneficiary is a
surviving spouse;
(viii) if the motor vehicle is purchased for the
purpose of resale by a retailer registered under Section
2a of the Retailers' Occupation Tax Act.
Prior to January 1, 1988, the rate of tax shall be 5% of
the selling price for each purchase of a motor vehicle covered
by Section 3-1001 of this Code. Except as hereinafter
provided, beginning January 1, 1988 and until January 1, 2022,
the rate of tax shall be as follows for transactions in which
the selling price of the motor vehicle is less than $15,000:
Number of Years Transpired After Applicable Tax
Model Year of Motor Vehicle
1 or less $390
2 290
3 215
4 165
5 115
6 90
7 80
8 65
9 50
10 40
over 10 25
Except as hereinafter provided, beginning January 1, 1988 and

SB3019 Enrolled - 568 - LRB104 20255 HLH 33706 b
until January 1, 2022, the rate of tax shall be as follows for
transactions in which the selling price of the motor vehicle
is $15,000 or more:
Selling Price Applicable Tax
$15,000 - $19,999 $ 750
$20,000 - $24,999 $1,000
$25,000 - $29,999 $1,250
$30,000 and over $1,500
Except as hereinafter provided, beginning on January 1,
2022, the rate of tax shall be as follows for transactions in
which the selling price of the motor vehicle is less than
$15,000:
(1) if one year or less has transpired after the model
year of the vehicle, then the applicable tax is $465;
(2) if 2 years have transpired after the model year of
the motor vehicle, then the applicable tax is $365;
(3) if 3 years have transpired after the model year of
the motor vehicle, then the applicable tax is $290;
(4) if 4 years have transpired after the model year of
the motor vehicle, then the applicable tax is $240;
(5) if 5 years have transpired after the model year of
the motor vehicle, then the applicable tax is $190;
(6) if 6 years have transpired after the model year of
the motor vehicle, then the applicable tax is $165;
(7) if 7 years have transpired after the model year of
the motor vehicle, then the applicable tax is $155;

SB3019 Enrolled - 569 - LRB104 20255 HLH 33706 b
(8) if 8 years have transpired after the model year of
the motor vehicle, then the applicable tax is $140;
(9) if 9 years have transpired after the model year of
the motor vehicle, then the applicable tax is $125;
(10) if 10 years have transpired after the model year
of the motor vehicle, then the applicable tax is $115; and
(11) if more than 10 years have transpired after the
model year of the motor vehicle, then the applicable tax
is $100.
Except as hereinafter provided, beginning on January 1,
2022, the rate of tax shall be as follows for transactions in
which the selling price of the motor vehicle is $15,000 or
more:
(1) if the selling price is $15,000 or more, but less
than $20,000, then the applicable tax shall be $850;
(2) if the selling price is $20,000 or more, but less
than $25,000, then the applicable tax shall be $1,100;
(3) if the selling price is $25,000 or more, but less
than $30,000, then the applicable tax shall be $1,350;
(4) if the selling price is $30,000 or more, but less
than $50,000, then the applicable tax shall be $1,600;
(5) if the selling price is $50,000 or more, but less
than $100,000, then the applicable tax shall be $2,600;
(6) if the selling price is $100,000 or more, but less
than $1,000,000, then the applicable tax shall be $5,100;
and

SB3019 Enrolled - 570 - LRB104 20255 HLH 33706 b
(7) if the selling price is $1,000,000 or more, then
the applicable tax shall be $10,100.
For the following transactions, the tax rate shall be $15 for
each motor vehicle acquired in such transaction:
(i) when the transferee or purchaser is the spouse,
mother, father, brother, sister or child of the
transferor;
(ii) when the transfer is a gift to a beneficiary in
the administration of an estate, including, but not
limited to, the administration of an inter vivos trust
that became irrevocable upon the death of a grantor, and
the beneficiary is not a surviving spouse;
(iii) when a motor vehicle which has once been
subjected to the Illinois retailers' occupation tax or use
tax is transferred in connection with the organization,
reorganization, dissolution or partial liquidation of an
incorporated or unincorporated business wherein the
beneficial ownership is not changed.
A claim that the transaction is taxable under subparagraph
(i) shall be supported by such proof of family relationship as
provided by rules of the Department.
For a transaction in which a motorcycle, motor driven
cycle or moped is acquired the tax rate shall be $25.
On and after October 1, 1985 and until January 1, 2022,
1/12 of $5,000,000 of the moneys received by the Department of
Revenue pursuant to this Section shall be paid each month into

SB3019 Enrolled - 571 - LRB104 20255 HLH 33706 b
the Build Illinois Fund; on and after January 1, 2022, 1/12 of
$40,000,000 of the moneys received by the Department of
Revenue pursuant to this Section shall be paid each month into
the Build Illinois Fund; and the remainder shall be paid into
the General Revenue Fund.
The tax imposed by this Section shall be abated and no
longer imposed when the amount deposited to secure the bonds
issued pursuant to the Build Illinois Bond Act is sufficient
to provide for the payment of the principal of, and interest
and premium, if any, on the bonds, as certified to the State
Comptroller and the Director of Revenue by the Director of the
Governor's Office of Management and Budget.
(Source: P.A. 104-6, eff. 6-16-25.)
ARTICLE 75
Section 75-5. The Retailers' Occupation Tax Act is amended
by changing Sections 2a and 2b as follows:
(35 ILCS 120/2a) (from Ch. 120, par. 441a)
Sec. 2a. Registration of retailers. It is unlawful for any
person to engage in the business of selling, which, on and
after January 1, 2025, includes leasing, tangible personal
property at retail in this State without a certificate of
registration from the Department. Application for a
certificate of registration shall be made to the Department

SB3019 Enrolled - 572 - LRB104 20255 HLH 33706 b
upon forms furnished by it. Each such application shall be
signed and verified and shall state: (1) the name and social
security number of the applicant; (2) the address of his
principal place of business; (3) the address of the principal
place of business from which he engages in the business of
selling tangible personal property at retail in this State and
the addresses of all other places of business, if any
(enumerating such addresses, if any, in a separate list
attached to and made a part of the application), from which he
engages in the business of selling tangible personal property
at retail in this State; (4) the name and address of the person
or persons who will be responsible for filing returns and
payment of taxes due under this Act; (5) in the case of a
publicly traded corporation, the name and title of the Chief
Financial Officer, Chief Operating Officer, and any other
officer or employee with responsibility for preparing tax
returns under this Act, and, in the case of all other
corporations, the name, title, and social security number of
each corporate officer; (6) in the case of a limited liability
company, the name, social security number, and FEIN number of
each manager and member; and (7) such other information as the
Department may reasonably require. The application shall
contain an acceptance of responsibility signed by the person
or persons who will be responsible for filing returns and
payment of the taxes due under this Act. If the applicant will
sell tangible personal property at retail through vending

SB3019 Enrolled - 573 - LRB104 20255 HLH 33706 b
machines, his application to register shall indicate the
number of vending machines to be so operated. If requested by
the Department at any time, that person shall verify the total
number of vending machines he or she uses in his or her
business of selling tangible personal property at retail.
The Department shall provide by rule for an expedited
business registration process for remote retailers required to
register and file under subsection (b) of Section 2 who use a
certified service provider to file their returns under this
Act. Such expedited registration process shall allow the
Department to register a taxpayer based upon the same
registration information required by the Streamlined Sales Tax
Governing Board for states participating in the Streamlined
Sales Tax Project.
The Department may deny a certificate of registration to
any applicant if a person who is named as the owner, a partner,
a manager or member of a limited liability company, or a
corporate officer of the applicant on the application for the
certificate of registration is or has been named as the owner,
a partner, a manager or member of a limited liability company,
or a corporate officer on the application for the certificate
of registration of another retailer that (i) is in default for
moneys due under this Act or any other tax or fee Act
administered by the Department or (ii) fails to file any
return, on or before the due date prescribed for filing that
return (including any extensions of time granted by the

SB3019 Enrolled - 574 - LRB104 20255 HLH 33706 b
Department), that the retailer is required to file under this
Act or any other tax or fee Act administered by the Department.
For purposes of this paragraph only, in determining whether a
person is in default for moneys due, the Department shall
include only amounts established as a final liability within
the 23 years prior to the date of the Department's notice of
denial of a certificate of registration.
The Department may require an applicant for a certificate
of registration hereunder to, at the time of filing such
application, furnish a bond from a surety company authorized
to do business in the State of Illinois, or an irrevocable bank
letter of credit or a bond signed by 2 personal sureties who
have filed, with the Department, sworn statements disclosing
net assets equal to at least 3 times the amount of the bond to
be required of such applicant, or a bond secured by an
assignment of a bank account or certificate of deposit, stocks
or bonds, conditioned upon the applicant paying to the State
of Illinois all moneys becoming due under this Act and under
any other State tax law or municipal or county tax ordinance or
resolution under which the certificate of registration that is
issued to the applicant under this Act will permit the
applicant to engage in business without registering separately
under such other law, ordinance or resolution. In making a
determination as to whether to require a bond or other
security, the Department shall take into consideration whether
the owner, any partner, any manager or member of a limited

SB3019 Enrolled - 575 - LRB104 20255 HLH 33706 b
liability company, or a corporate officer of the applicant is
or has been the owner, a partner, a manager or member of a
limited liability company, or a corporate officer of another
retailer that is in default for moneys due under this Act or
any other tax or fee Act administered by the Department; and
whether the owner, any partner, any manager or member of a
limited liability company, or a corporate officer of the
applicant is or has been the owner, a partner, a manager or
member of a limited liability company, or a corporate officer
of another retailer whose certificate of registration has been
revoked within the previous 5 years under this Act or any other
tax or fee Act administered by the Department. If a bond or
other security is required, the Department shall fix the
amount of the bond or other security, taking into
consideration the amount of money expected to become due from
the applicant under this Act and under any other State tax law
or municipal or county tax ordinance or resolution under which
the certificate of registration that is issued to the
applicant under this Act will permit the applicant to engage
in business without registering separately under such other
law, ordinance, or resolution. The amount of security required
by the Department shall be such as, in its opinion, will
protect the State of Illinois against failure to pay the
amount which may become due from the applicant under this Act
and under any other State tax law or municipal or county tax
ordinance or resolution under which the certificate of

SB3019 Enrolled - 576 - LRB104 20255 HLH 33706 b
registration that is issued to the applicant under this Act
will permit the applicant to engage in business without
registering separately under such other law, ordinance or
resolution, but the amount of the security required by the
Department shall not exceed three times the amount of the
applicant's average monthly tax liability, or $50,000.00,
whichever amount is lower.
No certificate of registration under this Act shall be
issued by the Department until the applicant provides the
Department with satisfactory security, if required, as herein
provided for.
Upon receipt of the application for certificate of
registration in proper form, and upon approval by the
Department of the security furnished by the applicant, if
required, the Department shall issue to such applicant, in the
manner and form determined by the Department, a certificate of
registration which shall permit the person to whom it is
issued to engage in the business of selling tangible personal
property at retail in this State. The certificate of
registration shall be conspicuously displayed, in the manner
and form as the Department may require by rule, at the place of
business which the person so registered states in his
application to be the principal place of business from which
he engages in the business of selling tangible personal
property at retail in this State.
No certificate of registration issued prior to July 1,

SB3019 Enrolled - 577 - LRB104 20255 HLH 33706 b
2017 to a taxpayer who files returns required by this Act on a
monthly basis or renewed prior to July 1, 2017 by a taxpayer
who files returns required by this Act on a monthly basis shall
be valid after the expiration of 5 years from the date of its
issuance or last renewal. No certificate of registration
issued on or after July 1, 2017 to a taxpayer who files returns
required by this Act on a monthly basis or renewed on or after
July 1, 2017 by a taxpayer who files returns required by this
Act on a monthly basis shall be valid after the expiration of
one year from the date of its issuance or last renewal. The
expiration date of a sub-certificate of registration shall be
that of the certificate of registration to which the
sub-certificate relates. Prior to July 1, 2017, a certificate
of registration shall automatically be renewed, subject to
revocation as provided by this Act, for an additional 5 years
from the date of its expiration unless otherwise notified by
the Department as provided by this paragraph. On and after
July 1, 2017, a certificate of registration shall
automatically be renewed, subject to revocation as provided by
this Act, for an additional one year from the date of its
expiration unless otherwise notified by the Department as
provided by this paragraph.
Where a taxpayer to whom a certificate of registration is
issued under this Act is in default to the State of Illinois
for delinquent returns or for moneys due under this Act or any
other State tax law or municipal or county ordinance

SB3019 Enrolled - 578 - LRB104 20255 HLH 33706 b
administered or enforced by the Department, the Department
shall, not less than 60 days before the expiration date of such
certificate of registration, give notice to the taxpayer to
whom the certificate was issued of the account period of the
delinquent returns, the amount of tax, penalty and interest
due and owing from the taxpayer, and that the certificate of
registration shall not be automatically renewed upon its
expiration date unless the taxpayer, on or before the date of
expiration, has filed and paid the delinquent returns or paid
the defaulted amount in full. A taxpayer to whom such a notice
is issued shall be deemed an applicant for renewal. The
Department shall promulgate regulations establishing
procedures for taxpayers who file returns on a monthly basis
but desire and qualify to change to a quarterly or yearly
filing basis and will no longer be subject to renewal under
this Section, and for taxpayers who file returns on a yearly or
quarterly basis but who desire or are required to change to a
monthly filing basis and will be subject to renewal under this
Section.
The Department may in its discretion approve renewal by an
applicant who is in default if, at the time of application for
renewal, the applicant files all of the delinquent returns or
pays to the Department such percentage of the defaulted amount
as may be determined by the Department and agrees in writing to
waive all limitations upon the Department for collection of
the remaining defaulted amount to the Department over a period

SB3019 Enrolled - 579 - LRB104 20255 HLH 33706 b
not to exceed 5 years from the date of renewal of the
certificate; however, no renewal application submitted by an
applicant who is in default shall be approved if the
immediately preceding renewal by the applicant was conditioned
upon the installment payment agreement described in this
Section. The payment agreement herein provided for shall be in
addition to and not in lieu of the security that may be
required by this Section of a taxpayer who is no longer
considered a prior continuous compliance taxpayer. The
execution of the payment agreement as provided in this Act
shall not toll the accrual of interest at the statutory rate.
The Department may suspend a certificate of registration
if the Department finds that the person to whom the
certificate of registration has been issued knowingly sold
contraband cigarettes.
A certificate of registration issued under this Act more
than 5 years before January 1, 1990 (the effective date of
Public Act 86-383) shall expire and be subject to the renewal
provisions of this Section on the next anniversary of the date
of issuance of such certificate which occurs more than 6
months after January 1, 1990 (the effective date of Public Act
86-383). A certificate of registration issued less than 5
years before January 1, 1990 (the effective date of Public Act
86-383) shall expire and be subject to the renewal provisions
of this Section on the 5th anniversary of the issuance of the
certificate.

SB3019 Enrolled - 580 - LRB104 20255 HLH 33706 b
If a person who is licensed as a retailer of alcoholic
liquor under the Liquor Control Act of 1934 has had the renewal
of his or her certificate of registration denied under this
Section 2a, then, pursuant to Section 7-6.5 of the Liquor
Control Act of 1934, the Department shall file a notice with
the Liquor Control Commission that includes a certification,
signed by the Director of Revenue or his or her designee,
attesting that the person's certificate of registration
renewal has been denied after notice and an opportunity to be
heard.
If the person so registered states that he operates other
places of business from which he engages in the business of
selling tangible personal property at retail in this State,
the Department shall furnish him with a sub-certificate of
registration for each such place of business, and the
applicant shall display the appropriate sub-certificate of
registration at each such place of business. All
sub-certificates of registration shall bear the same
registration number as that appearing upon the certificate of
registration to which such sub-certificates relate.
If the applicant will sell tangible personal property at
retail through vending machines, the Department shall furnish
him with a sub-certificate of registration for each such
vending machine, and the applicant shall display the
appropriate sub-certificate of registration on each such
vending machine by attaching the sub-certificate of

SB3019 Enrolled - 581 - LRB104 20255 HLH 33706 b
registration to a conspicuous part of such vending machine. If
a person who is registered to sell tangible personal property
at retail through vending machines adds an additional vending
machine or additional vending machines to the number of
vending machines he or she uses in his or her business of
selling tangible personal property at retail, he or she shall
notify the Department, on a form prescribed by the Department,
to request an additional sub-certificate or additional
sub-certificates of registration, as applicable. With each
such request, the applicant shall report the number of
sub-certificates of registration he or she is requesting as
well as the total number of vending machines from which he or
she makes retail sales.
Where the same person engages in 2 or more businesses of
selling tangible personal property at retail in this State,
which businesses are substantially different in character or
engaged in under different trade names or engaged in under
other substantially dissimilar circumstances (so that it is
more practicable, from an accounting, auditing or bookkeeping
standpoint, for such businesses to be separately registered),
the Department may require or permit such person (subject to
the same requirements concerning the furnishing of security as
those that are provided for hereinbefore in this Section as to
each application for a certificate of registration) to apply
for and obtain a separate certificate of registration for each
such business or for any of such businesses, under a single

SB3019 Enrolled - 582 - LRB104 20255 HLH 33706 b
certificate of registration supplemented by related
sub-certificates of registration.
Any person who is registered under the Retailers'
Occupation Tax Act as of March 8, 1963, and who, during the
3-year period immediately prior to March 8, 1963, or during a
continuous 3-year period part of which passed immediately
before and the remainder of which passes immediately after
March 8, 1963, has been so registered continuously and who is
determined by the Department not to have been either
delinquent or deficient in the payment of tax liability during
that period under this Act or under any other State tax law or
municipal or county tax ordinance or resolution under which
the certificate of registration that is issued to the
registrant under this Act will permit the registrant to engage
in business without registering separately under such other
law, ordinance or resolution, shall be considered to be a
Prior Continuous Compliance taxpayer. Also any taxpayer who
has, as verified by the Department, faithfully and
continuously complied with the condition of his bond or other
security under the provisions of this Act for a period of 3
consecutive years shall be considered to be a Prior Continuous
Compliance taxpayer.
Every Prior Continuous Compliance taxpayer shall be exempt
from all requirements under this Act concerning the furnishing
of a bond or other security as a condition precedent to his
being authorized to engage in the business of selling tangible

SB3019 Enrolled - 583 - LRB104 20255 HLH 33706 b
personal property at retail in this State. This exemption
shall continue for each such taxpayer until such time as he may
be determined by the Department to be delinquent in the filing
of any returns, or is determined by the Department (either
through the Department's issuance of a final assessment which
has become final under the Act, or by the taxpayer's filing of
a return which admits tax that is not paid to be due) to be
delinquent or deficient in the paying of any tax under this Act
or under any other State tax law or municipal or county tax
ordinance or resolution under which the certificate of
registration that is issued to the registrant under this Act
will permit the registrant to engage in business without
registering separately under such other law, ordinance or
resolution, at which time that taxpayer shall become subject
to all the financial responsibility requirements of this Act
and, as a condition of being allowed to continue to engage in
the business of selling tangible personal property at retail,
may be required to post bond or other acceptable security with
the Department covering liability which such taxpayer may
thereafter incur. Any taxpayer who fails to pay an admitted or
established liability under this Act may also be required to
post bond or other acceptable security with this Department
guaranteeing the payment of such admitted or established
liability.
No certificate of registration shall be issued to any
person who is in default to the State of Illinois for moneys

SB3019 Enrolled - 584 - LRB104 20255 HLH 33706 b
due under this Act or under any other State tax law or
municipal or county tax ordinance or resolution under which
the certificate of registration that is issued to the
applicant under this Act will permit the applicant to engage
in business without registering separately under such other
law, ordinance or resolution.
Any person aggrieved by any decision of the Department
under this Section may, within 20 days after notice of such
decision, protest and request a hearing, whereupon the
Department shall give notice to such person of the time and
place fixed for such hearing and shall hold a hearing in
conformity with the provisions of this Act and then issue its
final administrative decision in the matter to such person. In
the absence of such a protest within 20 days, the Department's
decision shall become final without any further determination
being made or notice given.
With respect to security other than bonds (upon which the
Department may sue in the event of a forfeiture), if the
taxpayer fails to pay, when due, any amount whose payment such
security guarantees, the Department shall, after such
liability is admitted by the taxpayer or established by the
Department through the issuance of a final assessment that has
become final under the law, convert the security which that
taxpayer has furnished into money for the State, after first
giving the taxpayer at least 10 days' written notice, by
registered or certified mail, to pay the liability or forfeit

SB3019 Enrolled - 585 - LRB104 20255 HLH 33706 b
such security to the Department. If the security consists of
stocks or bonds or other securities which are listed on a
public exchange, the Department shall sell such securities
through such public exchange. If the security consists of an
irrevocable bank letter of credit, the Department shall
convert the security in the manner provided for in the Uniform
Commercial Code. If the security consists of a bank
certificate of deposit, the Department shall convert the
security into money by demanding and collecting the amount of
such bank certificate of deposit from the bank which issued
such certificate. If the security consists of a type of stocks
or other securities which are not listed on a public exchange,
the Department shall sell such security to the highest and
best bidder after giving at least 10 days' notice of the date,
time and place of the intended sale by publication in the
"State Official Newspaper". If the Department realizes more
than the amount of such liability from the security, plus the
expenses incurred by the Department in converting the security
into money, the Department shall pay such excess to the
taxpayer who furnished such security, and the balance shall be
paid into the State Treasury.
The Department shall discharge any surety and shall
release and return any security deposited, assigned, pledged
or otherwise provided to it by a taxpayer under this Section
within 30 days after:
(1) such taxpayer becomes a Prior Continuous

SB3019 Enrolled - 586 - LRB104 20255 HLH 33706 b
Compliance taxpayer; or
(2) such taxpayer has ceased to collect receipts on
which he is required to remit tax to the Department, has
filed a final tax return, and has paid to the Department an
amount sufficient to discharge his remaining tax
liability, as determined by the Department, under this Act
and under every other State tax law or municipal or county
tax ordinance or resolution under which the certificate of
registration issued under this Act permits the registrant
to engage in business without registering separately under
such other law, ordinance or resolution. The Department
shall make a final determination of the taxpayer's
outstanding tax liability as expeditiously as possible
after his final tax return has been filed; if the
Department cannot make such final determination within 45
days after receiving the final tax return, within such
period it shall so notify the taxpayer, stating its
reasons therefor.
(Source: P.A. 103-319, eff. 1-1-24; 103-592, eff. 1-1-25;
104-6, eff. 6-16-25.)
(35 ILCS 120/2b) (from Ch. 120, par. 441b)
Sec. 2b. The Department may, after notice and a hearing as
provided herein, revoke the certificate of registration of any
person who violates any of the provisions of this Act. Before
revocation of a certificate of registration the Department

SB3019 Enrolled - 587 - LRB104 20255 HLH 33706 b
shall, within 90 days after non-compliance and at least 7 days
prior to the date of the hearing, give the person so accused
notice in writing of the charge against him or her, and on the
date designated shall conduct a hearing upon this matter. The
lapse of such 90 day period shall not preclude the Department
from conducting revocation proceedings at a later date if
necessary. Any hearing held under this Section shall be
conducted by the Director of Revenue or by any officer or
employee of the Department designated, in writing, by the
Director of Revenue.
Upon the hearing of any such proceeding, the Director of
Revenue, or any officer or employee of the Department
designated, in writing, by the Director of Revenue, may
administer oaths and the Department may procure by its
subpoena the attendance of witnesses and, by its subpoena
duces tecum, the production of relevant books and papers. Any
circuit court, upon application either of the accused or of
the Department, may, by order duly entered, require the
attendance of witnesses and the production of relevant books
and papers, before the Department in any hearing relating to
the revocation of certificates of registration. Upon refusal
or neglect to obey the order of the court, the court may compel
obedience thereof by proceedings for contempt.
The Department may, by application to any circuit court,
obtain an injunction restraining any person who engages in the
business of selling tangible personal property at retail in

SB3019 Enrolled - 588 - LRB104 20255 HLH 33706 b
this State without a certificate of registration (either
because the certificate of registration has been revoked or
because of a failure to obtain a certificate of registration
in the first instance) from engaging in such business until
such person, as if he or she were a new applicant for a
certificate of registration, shall comply with all of the
conditions, restrictions and requirements of Section 2a of
this Act and qualify for and obtain a certificate of
registration. Upon refusal or neglect to obey the order of the
court, the court may compel obedience thereof by proceedings
for contempt.
It shall not be a defense in a proceeding before the
Department to revoke a certificate of registration issued
under the Act, or in any action by the Department to collect
any tax due under this Act, that the holder of the certificate
is a party to an installment payment agreement under Section
2a of this Act if the liability which is the basis of the
revocation proceeding, or the tax that is sought to be
collected: (1) was incurred after the date of the agreement
was approved by the Department; or (2) was incurred prior to
the date the agreement was approved by the Department, but was
not included in the agreement; or (3) was included in the
agreement, but the taxpayer is in default of the agreement.
If a person who is licensed as a retailer of alcoholic
liquor under the Liquor Control Act of 1934 has had his or her
certificate of registration revoked under this Section 2b,

SB3019 Enrolled - 589 - LRB104 20255 HLH 33706 b
then, pursuant to Section 7-6.5 of the Liquor Control Act of
1934, the Department shall file a notice with the Liquor
Control Commission that includes a certification, signed by
its Director of Revenue or his or her designee, attesting that
the person's certificate of registration has been revoked,
after notice and an opportunity to be heard.
(Source: P.A. 86-338; 86-383; 86-1028.)
Section 75-10. The Liquor Control Act of 1934 is amended
by adding Sections 1-3.49 and 7-6.5 as follows:
(235 ILCS 5/1-3.49 new)
Sec. 1-3.49. Inactive license. "Inactive license" means a
status of licensure in which the licensee holds a current
license under this Act, but the licensee is prohibited from
engaging in all licensed activities because the licensee does
not hold an active certificate of registration issued by the
Department of Revenue pursuant to the Retailers' Occupation
Tax Act.
(235 ILCS 5/7-6.5 new)
Sec. 7-6.5. Inactive licenses; certificate of
registration. Notwithstanding anything in this Act to the
contrary, the Commission shall inactivate the license of any
licensee authorized to sell alcoholic liquor at retail if that
person's certificate of registration renewal has been denied

SB3019 Enrolled - 590 - LRB104 20255 HLH 33706 b
by the Department of Revenue pursuant to Section 2a of the
Retailers' Occupation Tax Act or that person's certificate of
registration has been revoked by the Department of Revenue
pursuant to Section 2b of the Retailers' Occupation Tax Act
until the violation resulting in the nonrenewal or revocation
has been remedied and the certificate of registration has been
reinstated by the Department of Revenue. The Department of
Revenue shall file a notice with the Commission that includes
a certification, signed by Director of Revenue or his or her
designee, attesting that the person's certificate of
registration renewal has been denied or the person's
certificate of registration has been revoked after notice and
an opportunity to be heard.
If a person who is licensed as a retailer of alcoholic
liquor under this Act has had the renewal of his or her
certificate of registration denied under Section 2a or revoked
under Section 2b of the Retailers' Occupation Tax Act, then,
pursuant to this Section, distributors licensed under this Act
are prohibited from selling alcoholic liquor to that retailer,
that retailer is prohibited from purchasing alcoholic liquor
from distributors, and all other licensed activities are
prohibited pending notification by the Department of Revenue
that the nonrenewal or revocation has been resolved to the
Department of Revenue's satisfaction.
ARTICLE 80

SB3019 Enrolled - 591 - LRB104 20255 HLH 33706 b
Section 80-5. The Cigarette Machine Operators' Occupation
Tax Act is amended by changing Sections 1-15, 1-20, 1-40, and
1-105 as follows:
(35 ILCS 128/1-15)
Sec. 1-15. Cigarette machine operator license. No person
may engage in the business of operating a cigarette machine in
this State on or after August 1, 2012 without first having
obtained a license from the Department. Application for a
license shall be made to the Department, by electronic means,
in on a form furnished and prescribed by the Department. Each
applicant for a license under this Section shall furnish the
following information to the Department in on a form signed
and verified by the applicant under penalty of perjury, in an
electronic format established by the Department, the
following:
(1) a statement that the applicant will fully comply
with the Tobacco Products Manufacturers' Escrow
Enforcement Act of 2003; and
(2) the following information:
(A) the name and address of the applicant;
(B) (2) the address of the location at which the
applicant proposes to engage in the business of
operating a cigarette machine in this State; and
(C) (3) any other additional information the

SB3019 Enrolled - 592 - LRB104 20255 HLH 33706 b
Department may reasonably require by its rules.
The annual license fee payable to the Department for the
initial and each renewal cigarette machine operator license is
$250. Each applicant for a license shall pay that fee to the
Department at the time of submitting an application for
license to the Department.
Through June 30, 2027, every Every applicant who is
required to procure a cigarette machine operator license shall
file with his or her application a joint and several bond. Such
bond shall be executed to the Department of Revenue, with good
and sufficient surety or sureties residing or licensed to do
business within the State of Illinois, in the amount of
$2,500, conditioned upon the true and faithful compliance by
the licensee with all of the provisions of this Act. Such bond,
or a reissue thereof, or a substitute therefor therefore,
shall be kept in effect during the entire period covered by the
license. On and after July 1, 2027, applicants are no longer
required to file a bond with their application. The Department
shall discharge any surety and shall release and return any
bond provided to it by a taxpayer under this Section within 90
days after July 1, 2027, provided that the taxpayer is not
delinquent or deficient in the payment of tax liability.
A separate application for license shall be made and , a
separate annual license fee paid, and a separate bond filed,
for each place of business at which a person who is required to
procure a cigarette machine operator license under this

SB3019 Enrolled - 593 - LRB104 20255 HLH 33706 b
Section proposes to engage in business as a cigarette machine
operator in Illinois under this Act.
The following are ineligible to receive a cigarette
machine operator license under this Act:
(1) a person who is not of good character and
reputation in the community in which the person he
resides; the Department may consider prior conviction of a
felony, but, except as provided in paragraph (2), the
conviction shall not operate as an absolute bar to
licensure;
(2) a person who has been convicted of a felony under
any federal or State law, if the Department, after
investigation and consideration of any mitigating factors
and evidence of rehabilitation contained in the
applicant's record, including those provided in Section 4i
of the Cigarette Tax Act, and after a hearing, if
requested by the applicant, determines that the such
person has not been sufficiently rehabilitated to warrant
the public trust and the conviction will impair the
ability of the person to engage in the position for which a
license is sought;
(3) a corporation, if any officer, manager, or
director thereof, or any stockholder or stockholders
owning in the aggregate more than 5% of the stock of such
corporation, would not be eligible to receive a license
under this Act for any reason; or

SB3019 Enrolled - 594 - LRB104 20255 HLH 33706 b
(4) a person who has delinquent reports under Section
25 of the Tobacco Products Manufacturers' Escrow
Enforcement Act of 2003; or
(5) a person, or any person who owns more than 15% of
the ownership interests in an entity or a related party,
who:
(A) owes, at the time of application, any
delinquent cigarette taxes or tobacco taxes that have
been determined by law to be due and unpaid under this
Act or any other tax Act administered by the
Department, unless the license applicant has entered
into an agreement approved by the Department to pay
the amount due;
(B) has had a license under this Act, the
Cigarette Tax Act, the Cigarette Use Tax Act, or the
Tobacco Products Tax Act of 1995 revoked within the
past 2 years by the Department for misconduct relating
to stolen or contraband cigarettes or has been
convicted of a State or federal crime, punishable by
imprisonment of one year or more, relating to stolen
or contraband cigarettes;
(B-5) manufactures cigarettes, whether in this
State or outside of this State, and who is neither (i)
a participating manufacturer as defined in subsection
II(jj) of the "Master Settlement Agreement" as defined
in Sections 10 of the Tobacco Product Manufacturers'

SB3019 Enrolled - 595 - LRB104 20255 HLH 33706 b
Escrow Act and the Tobacco Products Manufacturers'
Escrow Enforcement Act of 2003; nor (ii) in full
compliance with Tobacco Product Manufacturers' Escrow
Act and the Tobacco Products Manufacturers' Escrow
Enforcement Act of 2003;
(C) has been found by the Department, after notice
and a hearing, to have imported or caused to be
imported into the United States for sale or
distribution any cigarette in violation of 19 U.S.C.
1681a;
(D) has been found by the Department, after notice
and a hearing, to have imported or caused to be
imported into the United States for sale or
distribution, or manufactured for sale or distribution
in the United States, any cigarette that does not
fully comply with the Federal Cigarette Labeling and
Advertising Act (15 U.S.C. 1331, et seq.); or
(E) has been found by the Department, after notice
and a hearing, to have made a materially material
false statement in the application or has failed to
produce records required to be maintained by this Act.
The Department, upon receipt of an application and ,
license fee, and bond in proper form from a person who is
eligible to receive a cigarette machine operator license under
this Act, shall issue to such applicant a license in a form as
prescribed by the Department. That license shall permit the

SB3019 Enrolled - 596 - LRB104 20255 HLH 33706 b
applicant to whom it is issued to engage in business as a
cigarette machine operator at the place shown in the his or her
application. All licenses issued by the Department under this
Section shall be valid for a period not to exceed one year
after issuance unless sooner revoked, canceled, or suspended
as provided in this Act. No license issued under this Section
is transferable or assignable. Such license shall be
conspicuously displayed in the place of business conducted by
the licensee in Illinois under such license. No cigarette
machine operator acquires any vested interest or compensable
property right in a license issued under this Section Act.
A cigarette machine operator shall notify the Department
of any change in the information contained in on the
application form, including any change in ownership, and shall
do so within 30 days after that change.
Every prior continuous compliance taxpayer shall be exempt
from all requirements under this Section concerning the
furnishing of bond as a condition precedent to his being
authorized to engage in the business licensed under this Act.
This exemption shall continue for each prior continuous
compliance taxpayer until such time as he may be determined by
the Department to be delinquent in the filing of any returns,
or is determined by the Department (either through the
Department's issuance of a final assessment which has become
final under the Act, or by the taxpayer's filing of a return
which admits tax to be due that is not paid) to be delinquent

SB3019 Enrolled - 597 - LRB104 20255 HLH 33706 b
or deficient in the paying of any tax under this Act, at which
time that taxpayer shall become subject to the bond
requirements of this Section and, as a condition of being
allowed to continue to engage in the business licensed under
this Act, shall be required to furnish bond to the Department
in such form as provided in this Section. The taxpayer shall
furnish such bond for a period of 2 years, after which, if the
taxpayer has not been delinquent in the filing of any returns,
or delinquent or deficient in the paying of any tax under this
Act, the Department may reinstate that person as a prior
continuous continuance compliance taxpayer. Any taxpayer who
fails to pay an admitted or established liability under this
Act may also be required by the Department to post bond or
other acceptable security with the Department guaranteeing the
payment of that admitted or established liability.
The Department shall discharge any surety and shall
release and return any bond or security deposited, assigned,
pledged, or otherwise provided to it by a taxpayer under this
Section within 30 days after:
(1) that taxpayer becomes a prior continuous
compliance taxpayer; or
(2) that taxpayer has ceased to collect receipts on
which the taxpayer he is required to remit tax to the
Department, has filed a final tax return, and has paid to
the Department an amount sufficient to discharge the his
remaining tax liability as determined by the Department

SB3019 Enrolled - 598 - LRB104 20255 HLH 33706 b
under this Act. The Department shall make a final
determination of the taxpayer's outstanding tax liability
as expeditiously as possible after the his final tax
return has been filed. If the Department cannot make the
final determination within 45 days after receiving the
final tax return, it shall so notify the taxpayer within
that period, stating its reasons therefor therefore.
Any person aggrieved by any decision of the Department
under this Section may, within 30 20 days after receiving
notice of the decision, protest and request a hearing. Upon
receiving a written request for a hearing, the Department
shall give notice to the person requesting the hearing of the
time and place fixed for the hearing and shall hold a hearing
in conformity with the provisions of this Act and then issue
its final administrative decision in the matter to that
person. In the absence of a protest and request for a hearing
within 30 20 days, the Department's decision shall become
final without any further determination being made or notice
given.
(Source: P.A. 97-688, eff. 6-14-12.)
(35 ILCS 128/1-20)
Sec. 1-20. Revocation, cancellation, or suspension of
license. The Department may, after notice and hearing as
provided for by this Act, revoke, cancel, or suspend the
license of any cigarette machine operator for the violation of

SB3019 Enrolled - 599 - LRB104 20255 HLH 33706 b
any provision of this Act, or for noncompliance with the
provisions of this Act, or for any noncompliance with any
lawful rule or regulation promulgated by the Department under
this Act, or because the licensee is determined to be
ineligible for a cigarette machine operator's license for any
one or more of the reasons provided for in Section 1-15 of this
Act.
Any cigarette machine operator aggrieved by any decision
of the Department under this Section may, within 30 20 days
after notice of the decision, protest and request a hearing.
Upon receiving a written request for a hearing, the Department
shall give notice in writing to the cigarette machine operator
requesting the hearing that contains a statement of the
charges preferred against the cigarette machine operator and
that states the time and place fixed for the hearing. The
Department shall hold the hearing in conformity with the
provisions of this Act and then issue its final administrative
decision in the matter to the cigarette machine operator. In
the absence of a written protest and request for a hearing
within 30 20 days, the Department's decision shall become
final without any further determination being made or notice
given.
No license so revoked shall be reissued to any cigarette
machine operator for a period of 6 months after the date of the
final determination of such revocation. No license shall be
reissued at all so long as the person who would receive the

SB3019 Enrolled - 600 - LRB104 20255 HLH 33706 b
license is ineligible to receive a cigarette machine
operator's license under this Act for any one or more of the
reasons provided for in Section 1-15 of this Act.
The Department, upon complaint filed in the circuit court,
may, by injunction, restrain any person who fails or refuses
to comply with any of the provisions of this Act from acting as
a cigarette machine operator in this State.
(Source: P.A. 97-688, eff. 6-14-12.)
(35 ILCS 128/1-40)
Sec. 1-40. Returns.
(a) Cigarette machine operators shall file a return and
remit the tax imposed by Section 1-10 by the 15th day of each
month covering the preceding calendar month. Each such return
shall show: the quantity of cigarettes made or fabricated
during the period covered by the return; the beginning and
ending meter reading for each cigarette machine for the period
covered by the return; the quantity of such cigarettes sold or
otherwise disposed of during the period covered by the return;
the brand family and manufacturer and quantity of tobacco
products used to make or fabricate cigarettes by use of a
cigarette machine; the license number of each distributor from
whom tobacco products are purchased; the type and quantity of
cigarette tubes purchased for use in a cigarette machine; the
type and quantity of cigarette tubes used in a cigarette
machine; and such other information as the Department may

SB3019 Enrolled - 601 - LRB104 20255 HLH 33706 b
require. Information that the Department may reasonably
require includes information related to the uniform regulation
and taxation of cigarettes. All returns and supporting
schedules required to be filed under this Section and all
payments required to be made under this Section shall be by
electronic means in the form prescribed by the Department.
Cigarette machine operators shall send a copy of those
returns, together with supporting schedule data, to the
Attorney General's Office by the 15th day of each month for the
period covering the preceding calendar month.
(b) Cigarette machine operators may take a credit against
any tax due under Section 1-10 of this Act for taxes imposed
and paid under the Tobacco Products Tax Act of 1995 on tobacco
products sold to a customer and used in a rolling machine
located at the cigarette machine operator's place of business.
To be eligible for such credit, the tobacco product must meet
the requirements of subsection (a) of Section 1-25 of this
Act. This subsection (b) is exempt from the provisions of
Section 1-155 of this Act.
(c) If any payment provided for in this Section exceeds
the cigarette machine operator's liabilities under this Act,
as shown on an original return, the cigarette machine operator
may credit such excess payment against liability subsequently
to be remitted to the Department under this Act, in accordance
with reasonable rules adopted by the Department.
(Source: P.A. 104-6, eff. 1-1-26.)

SB3019 Enrolled - 602 - LRB104 20255 HLH 33706 b
(35 ILCS 128/1-105)
Sec. 1-105. Hearings regarding seized cigarettes and
cigarette machines. After seizing any cigarettes or cigarette
machines, as provided in Section 1-100 of this Act, the
Department shall hold a hearing and shall determine whether
such cigarettes, at the time of their seizure by the
Department, were contraband cigarettes, or whether such
cigarette machines, at the time of their seizure by the
Department, contained or made contraband cigarettes. The
Department is not required to hold such a hearing if a waiver
and consent to forfeiture has been executed by the owner of the
property, if the owner is known, and by the person in whose
possession the property so taken was found, if that person is
known and if that person is not the owner of the property. The
Department shall give not less than 7 days' notice of the time
and place of such hearing to the owner of such property, if he
is known, and also to the person in whose possession the
property so taken was found, if such person is known and if
such person in possession is not the owner of said property. In
case neither the owner nor the person in possession of such
property is known, the Department shall cause publication of
the time and place of such hearing to be made at least once in
each week for 3 weeks successively in a newspaper of general
circulation in the county where such hearing is to be held.
If, as the result of such hearing, the Department

SB3019 Enrolled - 603 - LRB104 20255 HLH 33706 b
determines that the cigarettes seized were, at the time of
seizure, contraband cigarettes, or that any cigarette machine
at the time of its seizure contained or made contraband
cigarettes, or upon receipt of a properly executed waiver and
consent to forfeiture as provided in this Section, the
Department shall enter an order declaring such cigarettes or
such cigarette machine confiscated and forfeited to the State,
and to be held by the Department for disposal as provided in
this Section. The Department shall give notice of such order
to the owner of such property if he is known, and also to the
person in whose possession the property so taken was found, if
such person is known, and if such person in possession is not
the owner of the property. In case neither the owner nor the
person in possession of such property is known, the Department
shall cause publication of such order to be made at least once
in each week for 3 weeks successively in a newspaper of general
circulation in the county where such hearing was held.
When any cigarettes or any cigarette machine shall have
been declared forfeited to the State by the Department, as
provided hereunder, and when all proceedings for the judicial
review of the Department's decision have terminated, the
Department shall, to the extent that its decision is sustained
on review, destroy or maintain and use such property in an
undercover capacity.
The cost of destruction shall be assessed against the
owner of the forfeited property or the person in possession of

SB3019 Enrolled - 604 - LRB104 20255 HLH 33706 b
the forfeited property. Those costs shall be assessed
regardless of whether the forfeiture is determined by hearing
or waiver.
Any person aggrieved by any decision of the Department
under this Section may, within 30 days after notice of the
decision, protest and request a hearing. Upon receiving a
written request for a hearing, the Department shall give
notice to the person requesting the hearing of the time and
place fixed for the hearing and shall hold a hearing in
conformity with the provisions of this Act and then issue its
final administrative decision in the matter to that person. In
the absence of a protest and request for a hearing within 30
days, the Department's decision shall become final without any
further determination being made or notice given.
(Source: P.A. 97-688, eff. 6-14-12.)
Section 80-10. The Cigarette Tax Act is amended by
changing Sections 4, 4a, 4b, 4c, 4f, 4g, 4i, 6, and 21 as
follows:
(35 ILCS 130/4) (from Ch. 120, par. 453.4)
Sec. 4. Distributor's license.
(a) No person may engage in business as a distributor of
cigarettes in this State within the meaning of the first 2
definitions of distributor in Section 1 of this Act without
first having obtained a license therefor from the Department.

SB3019 Enrolled - 605 - LRB104 20255 HLH 33706 b
Application for license shall be made to the Department, by
electronic means, in a form as furnished and prescribed by the
Department. Each applicant for a license under this Section
shall furnish to the Department in a on the form signed and
verified by the applicant under penalty of perjury, in an
electronic format established by the Department, the following
information:
(1) a statement that the applicant will fully comply
with the Tobacco Products Manufacturers' Escrow
Enforcement Act of 2003; and
(2) the following information:
(A) the (a) The name and address of the applicant;
(B) the (b) The address of the location at which
the applicant proposes to engage in business as a
distributor of cigarettes in this State; and
(C) such (c) Such other additional information as
the Department may reasonably lawfully require by its
rules and regulations.
The annual license fee payable to the Department for the
initial and each renewal distributor's license shall be $250.
The purpose of the initial and renewal such annual license fee
is to defray the cost, to the Department, of serializing
cigarette tax stamps. Each applicant for license shall pay
such fee to the Department at the time of submitting the his
application for license to the Department.
Through June 30, 2027, every Every applicant who is

SB3019 Enrolled - 606 - LRB104 20255 HLH 33706 b
required to procure a distributor's license shall file with
his application a joint and several bond. Such bond shall be
executed to the Department of Revenue, with good and
sufficient surety or sureties residing or licensed to do
business within the State of Illinois, in the amount of
$2,500, conditioned upon the true and faithful compliance by
the licensee with all of the provisions of this Act. Such bond,
or a reissue thereof, or a substitute therefor, shall be kept
in effect during the entire period covered by the license. On
and after July 1, 2027, applicants are no longer required to
file a bond with their application. The Department shall
discharge any surety and shall release and return any bond
provided to it by a taxpayer under this Section within 90 days
after July 1, 2027, provided that the taxpayer is not
delinquent or deficient in the payment of tax liability.
A separate application for license shall be made and , a
separate annual license fee paid, and a separate bond filed,
for each place of business at which a person who is required to
procure a distributor's license under this Section proposes to
engage in business as a distributor in Illinois under this
Section Act.
(b) The following are ineligible to receive a
distributor's license under this Section Act:
(1) a person who is not of good character and
reputation in the community in which the person he
resides; the Department may consider prior conviction of a

SB3019 Enrolled - 607 - LRB104 20255 HLH 33706 b
felony, past conviction of a felony but, except as
provided in paragraph (2), the conviction shall not
operate as an absolute bar to licensure;
(2) a person who has been convicted of a felony under
any federal Federal or State law, if the Department, after
investigation and a hearing and consideration of any
mitigating factors and evidence of rehabilitation
contained in the applicant's record, including those
provided in Section 4i of this Act, and after a hearing, if
requested by the applicant, determines that the such
person has not been sufficiently rehabilitated to warrant
the public trust and the conviction will impair the
ability of the person to engage in the position for which a
license is sought;
(3) a corporation, if any officer, manager, or
director thereof, or any stockholder or stockholders
owning in the aggregate more than 5% of the stock of such
corporation, would not be eligible to receive a license
under this Act for any reason;
(4) a person who has delinquent reports under Section
25 of the Tobacco Products Manufacturers' Escrow
Enforcement Act of 2003; or
(5) a person, or any person who owns more than 15% 15
percent of the ownership interests in a person or a
related party who:
(A) (a) owes, at the time of application, any

SB3019 Enrolled - 608 - LRB104 20255 HLH 33706 b
delinquent cigarette taxes that have been determined
by law to be due and unpaid under this Act or any other
tax Act administered by the Department, unless the
license applicant has entered into an agreement
approved by the Department to pay the amount due;
(B) (b) had a license under this Act, the
Cigarette Use Tax Act, the Tobacco Products Tax Act of
1995, or the Cigarette Machine Operator's Occupation
Tax Act revoked within the past 2 two years by the
Department for misconduct relating to stolen or
contraband cigarettes or has been convicted of a State
or federal crime, punishable by imprisonment of one
year or more, relating to stolen or contraband
cigarettes;
(C) (c) manufactures cigarettes, whether in this
State or out of this State, and who is neither (i) a
participating manufacturer as defined in subsection
II(jj) of the "Master Settlement Agreement" as defined
in Sections 10 of the Tobacco Product Products
Manufacturers' Escrow Act and the Tobacco Products
Manufacturers' Escrow Enforcement Act of 2003 (30 ILCS
168/10 and 30 ILCS 167/10); nor (ii) in full
compliance with Tobacco Product Products
Manufacturers' Escrow Act and the Tobacco Products
Manufacturers' Escrow Enforcement Act of 2003 (30 ILCS
168/ and 30 ILCS 167/);

SB3019 Enrolled - 609 - LRB104 20255 HLH 33706 b
(D) (d) has been found by the Department, after
notice and a hearing, to have imported or caused to be
imported into the United States for sale or
distribution any cigarette in violation of 19 U.S.C.
1681a;
(E) (e) has been found by the Department, after
notice and a hearing, to have imported or caused to be
imported into the United States for sale or
distribution or manufactured for sale or distribution
in the United States any cigarette that does not fully
comply with the Federal Cigarette Labeling and
Advertising Act (15 U.S.C. 1331, et seq.); or
(F) (f) has been found by the Department, after
notice and a hearing, to have made a materially
material false statement in the application or has
failed to produce records required to be maintained by
this Act.
(c) The Department, upon receipt of an application and ,
license fee and bond in proper form, from a person who is
eligible to receive a distributor's license under this
Section, Act, shall issue to such applicant a license. That in
form as prescribed by the Department, which license shall
permit the applicant to which it is issued to engage in
business as a distributor at the place shown in the his
application. All licenses issued by the Department under this
Section Act shall be valid for a period not to exceed one year

SB3019 Enrolled - 610 - LRB104 20255 HLH 33706 b
after issuance unless sooner revoked, canceled, or suspended
as provided in this Act. No license issued under this Section
Act is transferable or assignable. Such license shall be
conspicuously displayed in the place of business conducted by
the licensee in Illinois under such license. No distributor
licensee acquires any vested interest or compensable property
right in a license issued under this Section Act.
A licensed distributor shall notify the Department of any
change in the information contained on the application form,
including any change in ownership and shall do so within 30
days after any such change.
Any person aggrieved by any decision of the Department
under this Section may, within 30 20 days after notice of the
decision, protest and request a hearing. Upon receiving a
request for a hearing, the Department shall give notice to the
person requesting the hearing of the time and place fixed for
the hearing and shall hold a hearing in conformity with the
provisions of this Act and then issue its final administrative
decision in the matter to that person. In the absence of a
protest and request for a hearing within 30 20 days, the
Department's decision shall become final without any further
determination being made or notice given.
(Source: P.A. 100-286, eff. 1-1-18.)
(35 ILCS 130/4a) (from Ch. 120, par. 453.4a)
Sec. 4a. If a distributor shall be convicted of the

SB3019 Enrolled - 611 - LRB104 20255 HLH 33706 b
violation of any of the provisions of this Act, or if the
distributor's his or her license shall be revoked and no
review is had of the order or revocation, or if on review
thereof the decision is adverse to the distributor, or if a
distributor fails to pay an assessment as to which no judicial
review is sought and which has become final, or pursuant to
which, upon review thereof, the circuit court has entered a
judgment that is in favor of the Department and that has become
final, the bond filed pursuant to this Act shall thereupon be
forfeited, and the Department may institute a suit upon such
bond in its own name for the entire amount of such bond and
costs. Such suit upon the bond shall be in addition to any
other remedy provided for herein.
This Section is repealed on January 1, 2028.
(Source: P.A. 96-1027, eff. 7-12-10.)
(35 ILCS 130/4b) (from Ch. 120, par. 453.4b)
Sec. 4b. Distributor's permit.
(a) Cigarettes in original packages contained inside a
sealed transparent wrapper.
(1) The Department may, in its discretion, upon
application, issue permits authorizing the payment of the
tax herein imposed by out-of-State cigarette manufacturers
who are not required to be licensed as distributors of
cigarettes in this State, but who elect to qualify under
this subsection Act as distributors of cigarettes in this

SB3019 Enrolled - 612 - LRB104 20255 HLH 33706 b
State, and who, to the satisfaction of the Department,
furnish adequate security to insure payment of the tax,
provided that any such permit shall extend only to
cigarettes which such permittee manufacturer places in
original packages that are contained inside a sealed
transparent wrapper. Application for a permit shall be
made to the Department, by electronic means, in a form
prescribed by the Department. Such permits shall be issued
without charge in such form as the Department may
prescribe and shall not be transferable or assignable.
(2) Each applicant for a permit under this subsection
shall furnish to the Department in a form signed and
verified by the applicant under penalty of perjury, in an
electronic format established by the Department, the
following:
(A) a statement that the applicant will fully
comply with the Tobacco Products Manufacturers' Escrow
Enforcement Act of 2003; and
(B) the following information:
(i) the name and address of the applicant;
(ii) the address of the location at which the
applicant proposes to engage in business; and
(iii) such other additional information as the
Department may reasonably require by its rules.
(3) The following are ineligible to receive a
distributor's permit under this subsection:

SB3019 Enrolled - 613 - LRB104 20255 HLH 33706 b
(A) (1) a person who is not of good character and
reputation in the community in which the person he
resides; the Department may consider prior conviction
of a felony, past conviction of a felony but, except as
provided in paragraph (B), the conviction shall not
operate as an absolute bar to receiving a permit;
(B) (2) a person who has been convicted of a felony
under any federal Federal or State law, if the
Department, after investigation and a hearing and
consideration of any mitigating factors and evidence
of rehabilitation contained in the applicant's record,
including those in Section 4i of this Act, and after a
hearing, if requested by the applicant, determines
that such person has not been sufficiently
rehabilitated to warrant the public trust and the
conviction will impair the ability of the person to
engage in the position for which a permit is sought;
(C) (3) a corporation, if any officer, manager or
director thereof, or any stockholder or stockholders
owning in the aggregate more than 5% of the stock of
such corporation, would not be eligible to receive a
permit under this Act for any reason.
(D) a person who has delinquent reports under
Section 25 of the Tobacco Products Manufacturers'
Escrow Enforcement Act of 2003; or
(E) a person, or any person who owns more than 15%

SB3019 Enrolled - 614 - LRB104 20255 HLH 33706 b
of the ownership interests in a person or a related
party, who:
(i) owes, at the time of application, any
delinquent taxes that have been determined by law
to be due and unpaid under this Act or any other
tax Act administered by the Department, unless the
applicant has entered into an agreement approved
by the Department to pay the amount due;
(ii) had a license under this Act, the
Cigarette Use Tax Act, the Tobacco Products Tax
Act of 1995, or the Cigarette Machine Operator's
Occupation Tax Act revoked within the past 2 years
by the Department for misconduct relating to
stolen or contraband cigarettes or has been
convicted of a State or federal crime, punishable
by imprisonment of one year or more, relating to
stolen or contraband cigarettes;
(iii) manufactures cigarettes, whether in this
State or out of this State, and who is neither (a)
a participating manufacturer as defined in
subsection II(jj) of the "Master Settlement
Agreement" as defined in Sections 10 of the
Tobacco Product Manufacturers' Escrow Act and the
Tobacco Products Manufacturers' Escrow Enforcement
Act of 2003; nor (b) in full compliance with
Tobacco Product Manufacturers' Escrow Act and the

SB3019 Enrolled - 615 - LRB104 20255 HLH 33706 b
Tobacco Products Manufacturers' Escrow Enforcement
Act of 2003;
(iv) has been found by the Department, after
notice and a hearing, to have imported or caused
to be imported into the United States for sale or
distribution any cigarette in violation of 19
U.S.C. 1681a;
(v) has been found by the Department, after
notice and a hearing, to have imported or caused
to be imported into the United States for sale or
distribution or manufactured for sale or
distribution in the United States any cigarette
that does not fully comply with the Federal
Cigarette Labeling and Advertising Act (15 U.S.C.
1331, et seq.); or
(vi) has been found by the Department, after
notice and a hearing, to have made a materially
false statement in the application or has failed
to produce records required to be maintained by
this Act.
(4) There is no application fee for the initial and
renewal permits. A permittee shall notify the Department
of any change in the information contained on the
application form, including any change in ownership and
shall do so within 30 days after the change. The permit
shall not be transferable or assignable. A permittee does

SB3019 Enrolled - 616 - LRB104 20255 HLH 33706 b
not acquire any vested interest or compensable property
right in a permit issued under this subsection.
(5) Any person aggrieved by any decision of the
Department under this subsection may, within 30 days after
notice of the decision, protest and request a hearing.
Upon receiving a request for a hearing, the Department
shall give notice to the person requesting the hearing of
the time and place fixed for the hearing and shall hold a
hearing in conformity with the provisions of this Act and
then issue its final administrative decision in the matter
to that person. In the absence of a protest and request for
a hearing within 30 days, the Department's decision shall
become final without any further determination being made
or notice given.
(6) With respect to cigarettes which come within the
scope of such a permit and which any such permittee
delivers or causes to be delivered in Illinois to licensed
distributors, such permittee shall remit the tax imposed
by this Act at the times provided for in Section 3 of this
Act. Each such remittance shall be accompanied by a return
filed with the Department in on a form to be prescribed and
furnished by the Department and shall disclose such
information as the Department may lawfully require.
Information that the Department may lawfully require
includes information related to the uniform regulation and
taxation of cigarettes. All returns and supporting

SB3019 Enrolled - 617 - LRB104 20255 HLH 33706 b
schedules required to be filed under this subsection
Section and all payments required to be made under this
subsection Section shall be by electronic means in the
form prescribed by the Department. Each such return shall
be accompanied by a copy of each invoice rendered by the
permittee to any licensed distributor to whom the
permittee delivered cigarettes of the type covered by the
permit (or caused cigarettes of the type covered by the
permit to be delivered) in Illinois during the period
covered by such return.
(7) Such permit may be suspended, canceled, or revoked
when, at any time, the Department considers that the
security given is inadequate, or that such tax can more
effectively be collected from distributors located in this
State, or whenever the permittee violates any provision of
this Act or any lawful rule or regulation issued by the
Department pursuant to this Act or is determined to be
ineligible for a distributor's permit under this Act as
provided in this subsection Section, whenever the
permittee shall notify the Department in writing of his
desire to have the permit canceled. The Department shall
have the power, in its discretion, to issue a new permit
after such suspension, cancellation or revocation, except
when the person who would receive the permit is ineligible
to receive a distributor's permit under this Act.
(8) All permits issued by the Department under this

SB3019 Enrolled - 618 - LRB104 20255 HLH 33706 b
subsection Act shall be valid for a period not to exceed
one year after issuance unless sooner revoked, canceled,
or suspended as provided in this Act provided.
(b) Unstamped original packages of cigarettes for
distribution to the public for promotional purposes without
consideration.
(1) Out-of-state cigarette manufacturers who are not
required to be licensed as distributors of cigarettes in
this State and who do not elect to obtain approval under
subsection 4b(a) to pay the tax imposed by this Act, but
who elect to qualify under this subsection Act as
distributors of cigarettes in this State for purposes of
shipping and delivering unstamped original packages of
cigarettes into this State to licensed distributors, shall
obtain a permit from the Department. Application for a
permit shall be made to the Department, by electronic
means, in a form prescribed by the Department. These
permits shall be issued without charge in such form as the
Department may prescribe and shall not be transferable or
assignable.
(2) Each applicant for a permit under this subsection
shall furnish to the Department in a form signed and
verified by the applicant under penalty of perjury, in an
electronic format established by the Department, the
following:
(A) a statement that the applicant will fully

SB3019 Enrolled - 619 - LRB104 20255 HLH 33706 b
comply with the Tobacco Products Manufacturers' Escrow
Enforcement Act of 2003; and
(B) the following information:
(i) the name and address of the applicant;
(ii) the address of the location at which the
applicant proposes to engage in business; and
(iii) such other additional information as the
Department may reasonably require by its rules.
(3) The following are ineligible to receive a
distributor's permit under this subsection:
(A) (1) a person who is not of good character and
reputation in the community in which the person he or
she resides; the Department may consider prior
conviction of a felony, past conviction of a felony
but, except as provided in paragraph (B), the
conviction shall not operate as an absolute bar to
receiving a permit;
(B) (2) a person who has been convicted of a felony
under any federal or State law, if the Department,
after investigation and a hearing and consideration of
any mitigating factors and evidence of rehabilitation
contained in the applicant's record, including those
set forth in Section 4i of this Act, and a hearing, if
requested by the applicant, determines that the person
has not been sufficiently rehabilitated to warrant the
public trust and the conviction will impair the

SB3019 Enrolled - 620 - LRB104 20255 HLH 33706 b
ability of the person to engage in the position for
which a permit is sought; and
(C) (3) a corporation, if any officer, manager, or
director thereof, or any stockholder or stockholders
owning in the aggregate more than 5% of the stock of
the corporation, would not be eligible to receive a
permit under this Act for any reason; .
(D) a person who has delinquent reports under
Section 25 of the Tobacco Products Manufacturers'
Escrow Enforcement Act of 2003; or
(E) a person, or any person who owns more than 15%
of the ownership interests in a person or a related
party who:
(i) owes, at the time of application, any
delinquent taxes that have been determined by law
to be due and unpaid under this Act or any other
tax Act administered by the Department, unless the
applicant has entered into an agreement approved
by the Department to pay the amount due;
(ii) had a license under this Act, the
Cigarette Use Tax Act, the Tobacco Products Tax
Act of 1995, or the Cigarette Machine Operator's
Occupation Tax Act revoked within the past 2 years
by the Department for misconduct relating to
stolen or contraband cigarettes or has been
convicted of a State or federal crime, punishable

SB3019 Enrolled - 621 - LRB104 20255 HLH 33706 b
by imprisonment of one year or more, relating to
stolen or contraband cigarettes;
(iii) manufactures cigarettes, whether in this
State or out of this State, and who is neither (a)
a participating manufacturer as defined in
subsection II(jj) of the "Master Settlement
Agreement" as defined in Sections 10 of the
Tobacco Product Manufacturers' Escrow Act and the
Tobacco Products Manufacturers' Escrow Enforcement
Act of 2003; nor (b) in full compliance with
Tobacco Product Manufacturers' Escrow Act and the
Tobacco Products Manufacturers' Escrow Enforcement
Act of 2003;
(iv) has been found by the Department, after
notice and a hearing, to have imported or caused
to be imported into the United States for sale or
distribution any cigarette in violation of 19
U.S.C. 1681a;
(v) has been found by the Department, after
notice and a hearing, to have imported or caused
to be imported into the United States for sale or
distribution or manufactured for sale or
distribution in the United States any cigarette
that does not fully comply with the Federal
Cigarette Labeling and Advertising Act (15 U.S.C.
1331, et seq.); or

SB3019 Enrolled - 622 - LRB104 20255 HLH 33706 b
(vi) has been found by the Department, after
notice and a hearing, to have made a materially
false statement in the application or has failed
to produce records required to be maintained by
this Act.
(4) There is no application fee for the initial and
renewal permits. A permittee shall notify the Department
of any change in the information contained on the
application form, including any change in ownership and
shall do so within 30 days after any such change. Such
permit shall not be transferable or assignable. A
permittee does not acquire any vested interest or
compensable property right in a permit issued under this
subsection.
(5) Any person aggrieved by any decision of the
Department under this subsection may, within 30 days after
notice of the decision, protest and request a hearing.
Upon receiving a request for a hearing, the Department
shall give notice to the person requesting the hearing of
the time and place fixed for the hearing and shall hold a
hearing in conformity with the provisions of this Act and
then issue its final administrative decision in the matter
to that person. In the absence of a protest and request for
a hearing within 30 days, the Department's decision shall
become final without any further determination being made
or notice given.

SB3019 Enrolled - 623 - LRB104 20255 HLH 33706 b
(6) With respect to original packages of cigarettes
that such permittee delivers or causes to be delivered in
Illinois and distributes to the public for promotional
purposes without consideration, the permittee shall pay
the tax imposed by this Act by remitting the amount
thereof to the Department by the 5th day of each month
covering cigarettes shipped or otherwise delivered in
Illinois for those purposes during the preceding calendar
month. The permittee, before delivering those cigarettes
or causing those cigarettes to be delivered in this State,
shall evidence the permittee's his or her obligation to
remit the taxes due with respect to those cigarettes by
imprinting language to be prescribed by the Department on
each original package of cigarettes, in such place thereon
and in such manner also to be prescribed by the
Department. The imprinted language shall acknowledge the
permittee's payment of or liability for the tax imposed by
this Act with respect to the distribution of those
cigarettes.
(7) With respect to cigarettes that the permittee
delivers or causes to be delivered in Illinois to Illinois
licensed distributors or distributed to the public for
promotional purposes, the permittee shall, by the 5th day
of each month, file with the Department, a report covering
cigarettes shipped or otherwise delivered in Illinois to
licensed distributors or distributed to the public for

SB3019 Enrolled - 624 - LRB104 20255 HLH 33706 b
promotional purposes during the preceding calendar month
in on a form to be prescribed and furnished by the
Department and shall disclose such other information as
the Department may lawfully require. Information that the
Department may lawfully require includes information
related to the uniform regulation and taxation of
cigarettes. All reports and supporting schedules required
to be filed under this subsection Section shall be filed
electronically in the form prescribed by the Department.
Each such report shall be accompanied by a copy of each
invoice rendered by the permittee to any purchaser to whom
the permittee delivered cigarettes of the type covered by
the permit (or caused cigarettes of the type covered by
the permit to be delivered) in Illinois during the period
covered by such report.
(8) Such permit may be suspended, canceled, or revoked
whenever the permittee violates any provision of this Act
or any lawful rule or regulation issued by the Department
pursuant to this Act, is determined to be ineligible for a
distributor's permit under this Act as provided in this
subsection Section, or notifies the Department in writing
of his or her desire to have the permit canceled. The
Department shall have the power, in its discretion, to
issue a new permit after such suspension, cancellation, or
revocation, except when the person who would receive the
permit is ineligible to receive a distributor's permit

SB3019 Enrolled - 625 - LRB104 20255 HLH 33706 b
under this Act.
(9) All permits issued by the Department under this
subsection Act shall be valid for a period not to exceed
one year after issuance unless sooner revoked, canceled,
or suspended as provided in this Act.
(Source: P.A. 103-592, eff. 1-1-25; 104-6, eff. 1-1-26.)
(35 ILCS 130/4c)
Sec. 4c. Secondary distributor's license.
(a) No person may engage in business as a secondary
distributor of cigarettes in this State without first having
obtained a license therefor from the Department. Application
for license shall be made to the Department, by electronic
means, in on a form as furnished and prescribed by the
Department. Each applicant for a license under this Section
shall furnish the following information to the Department in
on a form signed and verified by the applicant under penalty of
perjury, in an electronic format established by the
Department, the following:
(1) a statement that the applicant will fully comply
with the Tobacco Products Manufacturers' Escrow
Enforcement Act of 2003; and
(2) the following information:
(A) the name and address of the applicant;
(B) (2) the address of the location at which the
applicant proposes to engage in business as a

SB3019 Enrolled - 626 - LRB104 20255 HLH 33706 b
secondary distributor of cigarettes in this State; and
(C) (3) such other additional information as the
Department may reasonably require by its rule.
The annual license fee payable to the Department for the
initial and each renewal secondary distributor's license shall
be $250. Each applicant for a license shall pay such fee to the
Department at the time of submitting an application for
license to the Department.
A separate application for license shall be made and
separate annual license fee paid for each place of business at
which a person who is required to procure a secondary
distributor's license under this Section proposes to engage in
business as a secondary distributor in Illinois under this
Act.
(b) The following are ineligible to receive a secondary
distributor's license under this Section Act:
(1) a person who is not of good character and
reputation in the community in which the person he
resides; the Department may consider prior past conviction
of a felony but, except as provided in paragraph (2), the
conviction shall not operate as an absolute bar to
licensure receiving a license;
(2) a person who has been convicted of a felony under
any federal or State law, if the Department, after
investigation and a hearing and consideration of any the
mitigating factors and evidence of rehabilitation

SB3019 Enrolled - 627 - LRB104 20255 HLH 33706 b
contained in the applicant's record, including those
provided in subsection (b) of Section 4i of this Act, and
hearing, if requested by the applicant, determines that
such person has not been sufficiently rehabilitated to
warrant the public trust and the conviction will impair
the ability of the person to engage in the position for
which a license is sought;
(3) a corporation, if any officer, manager, or
director thereof, or any stockholder or stockholders
owning in the aggregate more than 5% of the stock of such
corporation, would not be eligible to receive a license
under this Act for any reason;
(4) a person who manufactures cigarettes, whether in
this State or out of this State, and who is neither (i) a
participating manufacturer as defined in subsection II(jj)
of the "Master Settlement Agreement" as defined in
Sections 10 of the Tobacco Product Manufacturers' Escrow
Act and the Tobacco Products Manufacturers' Escrow
Enforcement Act of 2003; nor (ii) in full compliance with
Tobacco Product Manufacturers' Escrow Act and the Tobacco
Products Manufacturers' Escrow Enforcement Act of 2003;
(5) a person who has delinquent reports under Section
25 of the Tobacco Products Manufacturers' Escrow
Enforcement Act of 2003; or
(6) a person, or any person who owns more than 15% of
the ownership interests in a person or a related party

SB3019 Enrolled - 628 - LRB104 20255 HLH 33706 b
who:
(A) owes, at the time of application, any
delinquent cigarette taxes that have been determined
by law to be due and unpaid under this Act or any other
tax Act administered by the Department, unless the
license applicant has entered into an agreement
approved by the Department to pay the amount due;
(B) had a license under this Act, the Cigarette
Use Tax Act, the Tobacco Products Tax Act of 1995, or
the Cigarette Machine Operator's Occupation Tax Act
revoked within the past 2 two years by the Department
for misconduct relating to stolen or contraband
cigarettes or has been convicted of a State or federal
crime, punishable by imprisonment of one year or more,
relating to stolen or contraband cigarettes;
(C) has been found by the Department, after notice
and a hearing, to have imported or caused to be
imported into the United States for sale or
distribution any cigarette in violation of 19 U.S.C.
1681a;
(D) has been found by the Department, after notice
and a hearing, to have imported or caused to be
imported into the United States for sale or
distribution or manufactured for sale or distribution
in the United States any cigarette that does not fully
comply with the Federal Cigarette Labeling and

SB3019 Enrolled - 629 - LRB104 20255 HLH 33706 b
Advertising Act (15 U.S.C. 1331, et seq.); or
(E) has been found by the Department, after notice
and a hearing, to have made a materially material
false statement in the application or has failed to
produce records required to be maintained by this Act.
The Department, upon receipt of an application and license
fee from a person who is eligible to receive a secondary
distributor's license under this Section Act, shall issue to
such applicant a license in such form as prescribed by the
Department. The license shall permit the applicant to which it
is issued to engage in business as a secondary distributor at
the place shown in the his application. All licenses issued by
the Department under this Section Act shall be valid for a
period not to exceed one year after issuance unless sooner
revoked, canceled, or suspended as provided in this Act.
No license issued under this Section Act is transferable
or assignable. Such license shall be conspicuously displayed
in the place of business conducted by the licensee in Illinois
under such license. No secondary distributor licensee acquires
any vested interest or compensable property right in a license
issued under this Act.
A licensed secondary distributor shall notify the
Department of any change in the information contained on the
application form, including any change in ownership, and shall
do so within 30 days after any such change.
Any person aggrieved by any decision of the Department

SB3019 Enrolled - 630 - LRB104 20255 HLH 33706 b
under this Section may, within 30 20 days after notice of the
decision, protest and request a hearing. Upon receiving a
request for a hearing, the Department shall give notice to the
person requesting the hearing of the time and place fixed for
the hearing and shall hold a hearing in conformity with the
provisions of this Act and then issue its final administrative
decision in the matter to that person. In the absence of a
protest and request for a hearing within 30 20 days, the
Department's decision shall become final without any further
determination being made or notice given.
(Source: P.A. 100-286, eff. 1-1-18.)
(35 ILCS 130/4f)
Sec. 4f. Manufacturer representatives.
(a) No manufacturer may market cigarettes produced by the
manufacturer directly to retailers in this State issued a
license under Section 4g of this Act without first having
obtained authorization from the Department. Application for
authority to maintain representatives in this State to market
in this State cigarettes produced by the manufacturer shall be
made to the Department, by electronic means, in on a form
furnished and prescribed by the Department. Each applicant
under this Section shall furnish the following information to
the Department in on a form signed and verified by the
applicant under penalty of perjury, in an electronic format
established by the Department, the following:

SB3019 Enrolled - 631 - LRB104 20255 HLH 33706 b
(1) a statement that the applicant will fully comply
with the Tobacco Products Manufacturers' Escrow
Enforcement Act of 2003; and
(2) the following information:
(A) the name and address of the applicant;
(B) (2) the address of every location from which
the applicant proposes to engage in business in this
State;
(C) (3) the number of manufacturer representatives
the applicant requests to maintain in this State; and
(D) such (4) any other additional information as
the Department may reasonably require by its rule.
(a-5) The following manufacturers are ineligible to
receive authorization to maintain manufacturer representatives
in this State:
(1) a manufacturer who owes, at the time of
application, any delinquent cigarette taxes that have been
determined by law to be due and unpaid under this Act or
any other tax Act administered by the Department, unless
the applicant has entered into an agreement approved by
the Department to pay the amount due;
(2) a manufacturer who has had a license revoked
within the past 2 years for misconduct relating to stolen
or contraband cigarettes or has been convicted of a state
or federal crime, punishable by imprisonment of one year
or more, relating to stolen or contraband cigarettes;

SB3019 Enrolled - 632 - LRB104 20255 HLH 33706 b
(3) a manufacturer who manufactures cigarettes,
whether in this State or out of this State, and who is
neither (i) a participating manufacturer as defined in
subsection II(jj) of the "Master Settlement Agreement" as
defined in Sections 10 of the Tobacco Product
Manufacturers' Escrow Act and the Tobacco Products
Manufacturers' Escrow Enforcement Act of 2003; nor (ii) in
full compliance with Tobacco Product Manufacturers' Escrow
Act and the Tobacco Products Manufacturers' Escrow
Enforcement Act of 2003;
(3.5) a manufacturer who has been found, after notice
and a hearing, to have imported or caused to be imported
into the United States for sale or distribution any
cigarette in violation of 19 U.S.C. 1681a;
(4) a manufacturer who has been found, after notice
and a hearing, to have imported or caused to be imported
into the United States for sale or distribution or
manufactured for sale or distribution in the United States
any cigarette that does not fully comply with the Federal
Cigarette Labeling and Advertising Act (15 U.S.C. 1331, et
seq.);
(5) a manufacturer who has been found, after notice
and a hearing, to have made a materially material false
statement in an application or has failed to produce
records required to be maintained by this Act;
(6) a manufacturer who has been found, after notice

SB3019 Enrolled - 633 - LRB104 20255 HLH 33706 b
and hearing, to have violated any Section of this Act; or
(7) a manufacturer licensed as a distributor under
Section 4 of this Act or holding a permit under Section 4b
of this Act; or
(8) a manufacturer who has delinquent reports under
Section 25 of the Tobacco Products Manufacturers' Escrow
Enforcement Act of 2003.
The Department, upon receipt of an application from a
manufacturer who is eligible to maintain manufacturer
representatives in this State, shall notify the applicant in
writing, not more than 60 days after an application has been
received, that the applicant may or may not maintain the
requested number of manufacturer representatives in this
State. A copy of the notice authorizing a manufacturer to
maintain manufacturer representatives in this State shall be
available for inspection by the Department at each place of
business identified in the application and in the motor
vehicle operated by marketing representatives in the course of
performing their his or her duties in this State on behalf of
the manufacturer.
A manufacturer representative shall notify the Department
of any change in the information contained on the application
form and shall do so within 30 days after any such change.
(b) Only directors, officers, and employees of the
manufacturer may act as manufacturer representatives in this
State. The manufacturer shall provide to the Department the

SB3019 Enrolled - 634 - LRB104 20255 HLH 33706 b
names and addresses of the manufacturer representatives
operating in this State and the make, model, and license plate
number of each motor vehicle operated by a manufacturer
representative in the course of performing their his or her
duties in this State on behalf of the manufacturer. The
following individuals may not act as manufacturer
representatives:
(1) an individual who is not of good character and
reputation in the community in which the individual
resides; the Department may consider prior conviction of a
felony, but the conviction shall not operate as an
absolute bar to licensure;
(1.5) an individual who owes any delinquent cigarette
taxes that have been determined by law to be due and unpaid
under this Act or any other tax Act administered by the
Department, unless the individual has entered into an
agreement approved by the Department to pay the amount
due;
(2) an individual who has had a license under this
Act, the Cigarette Use Tax Act, the Tobacco Products Tax
Act of 1995, or the Cigarette Machine Operator's
Occupation Tax Act revoked within the past 2 years for
misconduct relating to stolen or contraband cigarettes or
has been convicted of a state or federal crime, punishable
by imprisonment of one year or more, relating to stolen or
contraband cigarettes;

SB3019 Enrolled - 635 - LRB104 20255 HLH 33706 b
(3) an individual who has been found, after notice and
a hearing, to have made a materially material false
statement in an application or has failed to produce
records required to be maintained by this Act; or
(4) an individual who has been found, after notice and
hearing, to have violated any Section of this Act.
(c) Manufacturer representatives may sell to retailers in
this State who are licensed under Section 4g of this Act only
original packages of cigarettes made, manufactured, or
fabricated by the manufacturer and purchased or obtained from
a distributor licensed under this Act, or the Cigarette Tax
Use Tax Act, and on which tax stamps have been affixed.
Manufacturer representatives may sell up to 600 stamped
original packages of cigarettes in a calendar year, for the
purpose of promoting the manufacturer's brands of cigarettes.
A manufacturer representative may not possess more than 500
stamped original packages of cigarettes made, manufactured, or
fabricated by the manufacturer and purchased or obtained from
a distributor licensed under this Act or the Cigarette Use Tax
Act. Any original packages of cigarettes in the possession of
a manufacturer representative that (i) are not made,
manufactured, or fabricated by the manufacturer and purchased
or obtained from a distributor licensed under this Act or the
Cigarette Use Tax Act, other than cigarettes for personal use
and consumption, (ii) exceed the maximum quantity of 500
original packages of cigarettes, excluding packages of

SB3019 Enrolled - 636 - LRB104 20255 HLH 33706 b
cigarettes for personal use and consumption; (iii) violate
Section 3-10 of this Act; or (iv) do not have the proper tax
stamps affixed, are contraband and subject to seizure and
forfeiture.
Manufacturer representatives may sell, on behalf of
licensed distributors, stamped original packages of cigarettes
to retailers who are licensed under Section 4g of this Act. The
manufacturer representative shall provide the distributor with
a signed receipt for the cigarettes obtained from the
distributor. The distributor shall invoice the licensed
retailer, and the licensed retailer shall pay the distributor
for all cigarettes provided to licensed retailers by
manufacturer representatives on behalf of a distributor.
Manufacturer representatives may sell stamped original
packages of cigarettes to licensed retailers that are
purchased from licensed distributors. Distributors shall
provide manufacturer representatives with invoices for stamped
original packages of cigarettes sold to manufacturer
representatives. Manufacturer representatives shall invoice
licensed retailers, and the licensed retailers shall pay the
manufacturer representatives for all original packages of
cigarettes sold to licensed retailers.
(d) Authorizations issued under this Section shall be
valid for a period not to exceed one year after issuance, and
may be renewed thereafter, unless sooner revoked, canceled, or
suspended as provided in this Act. There is no application fee

SB3019 Enrolled - 637 - LRB104 20255 HLH 33706 b
for the initial and renewal authorization under this Section.
Such authorization shall not be transferable or assignable. A
person does not acquire any vested interest or compensable
property right in an authorization issued under this Section.
Any person aggrieved by any decision of the Department
under this Section may, within 30 20 days after notice of the
decision, protest and request a hearing. Upon receiving a
request for a hearing, the Department shall give notice to the
person requesting the hearing of the time and place fixed for
the hearing and shall hold a hearing in conformity with the
provisions of this Act and then issue its final administrative
decision in the matter to that person. In the absence of a
protest and request for a hearing within 30 20 days, the
Department's decision shall become final without any further
determination being made or notice given.
(Source: P.A. 97-587, eff. 8-26-11; 98-1055, eff. 1-1-16.)
(35 ILCS 130/4g)
Sec. 4g. Retailer's license.
(a) Beginning on January 1, 2016, no person may engage in
business as a retailer of cigarettes in this State without
first having obtained a license from the Department.
Application for license shall be made to the Department, by
electronic means, in a form prescribed by the Department. Each
applicant for a license under this Section shall furnish to
the Department in a form signed and verified by the applicant

SB3019 Enrolled - 638 - LRB104 20255 HLH 33706 b
under penalty of perjury, in an electronic format established
by the Department, the following information:
(1) the name and address of the applicant;
(2) the address of the location at which the applicant
proposes to engage in business as a retailer of cigarettes
in this State; and
(3) such other additional information as the
Department may lawfully require by its rules and
regulations.
The annual license fee payable to the Department for each
retailer's license shall be $75. The fee shall be deposited
into the Tax Compliance and Administration Fund and shall be
for the cost of tobacco retail inspection and contraband
tobacco and tobacco smuggling with at least two-thirds of the
money being used for contraband tobacco and tobacco smuggling
operations and enforcement.
Each applicant for a license shall pay the fee to the
Department at the time of submitting its application for a
license to the Department. The Department shall require an
applicant for a license under this Section to electronically
file and pay the fee.
A separate annual license fee shall be paid for each place
of business at which a person who is required to procure a
retailer's license under this Section proposes to engage in
business as a retailer in Illinois under this Act.
(b) The following are ineligible to receive a retailer's

SB3019 Enrolled - 639 - LRB104 20255 HLH 33706 b
license under this Section Act:
(1) a person who has been convicted of a felony
related to the illegal transportation, sale, or
distribution of cigarettes, or a tobacco-related felony,
under any federal or State law, if the Department, after
investigation and consideration of any mitigating factors
and evidence of rehabilitation contained in the
applicant's record, including those provided in Section 4i
of the Act, and a hearing, if requested by the applicant,
determines that the person has not been sufficiently
rehabilitated to warrant the public trust; or
(2) a corporation, if any officer, manager, or
director thereof, or any stockholder or stockholders
owning in the aggregate more than 5% of the stock of such
corporation, would not be eligible to receive a license
under this Act for any reason; a limited liability
company, if any member or managing member would not be
eligible to receive a license under this Act for any
reason; a partnership, if any partner would not be
eligible to receive a license under this Act for any
reason.
The Department shall not issue a retailer's license to a
retailer unless the retailer is also registered under the
Retailers' Occupation Tax Act. A person who obtains a license
as a retailer who ceases to do business as specified in the
license, or who never commenced business, or whose license is

SB3019 Enrolled - 640 - LRB104 20255 HLH 33706 b
suspended or revoked, shall immediately surrender the license
to the Department.
(c) The Department, upon receipt of an application and
license fee, in proper form, from a person who is eligible to
receive a retailer's license under this Section Act, shall
issue to such applicant a license in form as prescribed by the
Department. That license shall permit the applicant to whom it
is issued to engage in business as a retailer under this Act at
the place shown in the his or her application. All licenses
issued by the Department under this Section shall be valid for
a period not to exceed one year after issuance unless sooner
revoked, canceled, or suspended as provided in this Act. No
license issued under this Section is transferable or
assignable. The license shall be conspicuously displayed in
the place of business conducted by the licensee in Illinois
under such license.
A licensed retailer shall notify the Department of any
change in the information contained on the application form,
including any change in ownership and shall do so within 30
days after the change.
The Department shall not issue a retailer's license to a
retailer unless the retailer is also registered under the
Retailers' Occupation Tax Act. A person who obtains a license
as a retailer who ceases to do business as specified in the
license, or who never commenced business, or whose license is
suspended or revoked, shall immediately surrender the license

SB3019 Enrolled - 641 - LRB104 20255 HLH 33706 b
to the Department.
Any person aggrieved by any decision of the Department
under this Section may, within 30 days after notice of the
decision, protest and request a hearing. Upon receiving a
request for a hearing, the Department shall give written
notice to the person requesting the hearing of the time and
place fixed for the hearing and shall hold a hearing in
conformity with the provisions of this Act and then issue its
final administrative decision in the matter to that person. In
the absence of a protest and request for a hearing within 30
days, the Department's decision shall become final without any
further determination being made or notice given.
(Source: P.A. 98-1055, eff. 1-1-16; 99-78, 7-20-15; 99-192,
eff. 1-1-16.)
(35 ILCS 130/4i)
Sec. 4i. Applicant convictions.
(a) The Department shall not require applicants to report
the following information and shall not consider the following
criminal history records in connection with an application for
a license or permit under this Act:
(1) Juvenile adjudications of delinquent minors as
defined in Section 5-105 of the Juvenile Court Act of
1987, subject to the restrictions set forth in Section
5-130 of the Juvenile Court Act of 1987.
(2) Law enforcement records, court records, and

SB3019 Enrolled - 642 - LRB104 20255 HLH 33706 b
conviction records of an individual who was 17 years old
at the time of the offense and before January 1, 2014,
unless the nature of the offense required the individual
to be tried as an adult.
(3) Records of arrest not followed by a conviction.
(4) Convictions overturned by a higher court.
(5) Convictions or arrests that have been sealed or
expunged.
(b) The Department, upon a finding that an applicant for a
license or permit was previously convicted of a felony under
any federal or State law, shall consider any mitigating
factors and evidence of rehabilitation contained in the
applicant's record, including any of the following factors and
evidence, to determine if the applicant has been sufficiently
rehabilitated and whether a prior conviction will impair the
ability of the applicant to engage in the position for which a
license or permit is sought:
(1) the lack of direct relation of the offense for
which the applicant was previously convicted to the
duties, functions, and responsibilities of the position
for which a license or permit is sought;
(2) whether 5 years since a felony conviction or 3
years since release from confinement for the conviction,
whichever is later, have passed without a subsequent
conviction;
(3) if the applicant was previously licensed or

SB3019 Enrolled - 643 - LRB104 20255 HLH 33706 b
employed in this State or other states or jurisdictions,
then the lack of prior misconduct arising from or related
to the licensed position or position of employment;
(4) the age of the person at the time of the criminal
offense;
(5) successful completion of sentence and, for
applicants serving a term of parole or probation, a
progress report provided by the applicant's probation or
parole officer that documents the applicant's compliance
with conditions of supervision;
(6) evidence of the applicant's present fitness and
professional character;
(7) evidence of rehabilitation or rehabilitative
effort during or after incarceration, or during or after a
term of supervision, including, but not limited to, a
certificate of good conduct under Section 5-5.5-25 of the
Unified Code of Corrections or a certificate of relief
from disabilities under Section 5-5.5-10 of the Unified
Code of Corrections; and
(8) any other mitigating factors that contribute to
the person's potential and current ability to perform the
duties and responsibilities of the position for which a
license, permit or employment is sought.
(c) If the Department refuses to issue a license or permit
to an applicant, then the Department shall notify the
applicant of the denial in writing with the following included

SB3019 Enrolled - 644 - LRB104 20255 HLH 33706 b
in the notice of denial:
(1) a statement about the decision to refuse to issue
a license or permit;
(2) a list of the convictions that the Department
determined will impair the applicant's ability to engage
in the position for which a license or permit is sought;
(3) a list of convictions that formed the sole or
partial basis for the refusal to issue a license or
permit; and
(4) (blank). a summary of the appeal process or the
earliest the applicant may reapply for a license,
whichever is applicable.
(d) No later than May 1 of each year, the Department must
prepare, publicly announce, and publish a report of summary
statistical information relating to new and renewal license or
permit applications during the preceding calendar year. Each
report shall show, at a minimum:
(1) the number of applicants for a new or renewal
license or permit under this Act within the previous
calendar year;
(2) the number of applicants for a new or renewal
license or permit under this Act within the previous
calendar year who had any criminal conviction;
(3) the number of applicants for a new or renewal
license or permit under this Act in the previous calendar
year who were granted a license or permit;

SB3019 Enrolled - 645 - LRB104 20255 HLH 33706 b
(4) the number of applicants for a new or renewal
license or permit with a criminal conviction who were
granted a license or permit under this Act within the
previous calendar year;
(5) the number of applicants for a new or renewal
license or permit under this Act within the previous
calendar year who were denied a license or permit; and
(6) the number of applicants for a new or renewal
license or permit with a criminal conviction who were
denied a license or permit under this Act in the previous
calendar year in whole or in part because of a prior
conviction.
(Source: P.A. 100-286, eff. 1-1-18.)
(35 ILCS 130/6) (from Ch. 120, par. 453.6)
Sec. 6. Revocation, cancellation, or suspension of
license.
(a) The Department may, after notice and hearing as
provided for by this Act, revoke, cancel or suspend the
license of any distributor, secondary distributor, or
retailer:
(1) for the violation of any provision of this Act, or
for noncompliance with any provision herein contained, or
for any noncompliance with any lawful rule or regulation
promulgated by the Department under Section 8 of this Act,
or

SB3019 Enrolled - 646 - LRB104 20255 HLH 33706 b
(2) because the licensee is determined to be
ineligible for a distributor's license for any one or more
of the reasons provided for in Section 4 of this Act, or
(3) because the licensee is determined to be
ineligible for a secondary distributor's license for any
one or more of the reasons provided for in Section 4c of
this Act, or
(4) because the licensee is determined to be
ineligible for a retailer's license for any one or more of
the reasons provided for in Section 4g of this Act.
However, no such license shall be revoked, cancelled or
suspended, except after a hearing by the Department with
notice to the distributor, secondary distributor, or retailer,
as aforesaid, and affording such distributor, secondary
distributor, or retailer a reasonable opportunity to appear
and defend, and any distributor, secondary distributor, or
retailer aggrieved by any decision of the Department with
respect thereto may have the determination of the Department
judicially reviewed, as herein provided.
(b) The Department may revoke, cancel, or suspend the
license of any distributor for a violation of the Tobacco
Products Manufacturers' Escrow Enforcement Act of 2003 as
provided in Section 30 of that Act. The Department may revoke,
cancel, or suspend the license of any secondary distributor
for a violation of subsection (e) of Section 15 of the Tobacco
Products Manufacturers' Escrow Enforcement Act of 2003.

SB3019 Enrolled - 647 - LRB104 20255 HLH 33706 b
(c) If the retailer has a training program that
facilitates compliance with minimum-age tobacco laws, the
Department shall suspend for 3 days the license of that
retailer for a fourth or subsequent violation of the
Prevention of Tobacco Use by Persons under 21 Years of Age and
Sale and Distribution of Tobacco Products Act, as provided in
subsection (a) of Section 2 of that Act. For the purposes of
this Section, any violation of subsection (a) of Section 2 of
the Prevention of Tobacco Use by Persons under 21 Years of Age
and Sale and Distribution of Tobacco Products Act occurring at
the retailer's licensed location during a 24-month period
shall be counted as a violation against the retailer.
(d) If the retailer does not have a training program that
facilitates compliance with minimum-age tobacco laws, the
Department shall suspend for 3 days the license of that
retailer for a second violation of the Prevention of Tobacco
Use by Persons under 21 Years of Age and Sale and Distribution
of Tobacco Products Act, as provided in subsection (a-5) of
Section 2 of that Act.
If the retailer does not have a training program that
facilitates compliance with minimum-age tobacco laws, the
Department shall suspend for 7 days the license of that
retailer for a third violation of the Prevention of Tobacco
Use by Persons under 21 Years of Age and Sale and Distribution
of Tobacco Products Act, as provided in subsection (a-5) of
Section 2 of that Act.

SB3019 Enrolled - 648 - LRB104 20255 HLH 33706 b
If the retailer does not have a training program that
facilitates compliance with minimum-age tobacco laws, the
Department shall suspend for 30 days the license of a retailer
for a fourth or subsequent violation of the Prevention of
Tobacco Use by Persons under 21 Years of Age and Sale and
Distribution of Tobacco Products Act, as provided in
subsection (a-5) of Section 2 of that Act.
A training program that facilitates compliance with
minimum-age tobacco laws must include at least the following
elements: (i) it must explain that only individuals displaying
valid identification demonstrating that they are 21 years of
age or older shall be eligible to purchase cigarettes or
tobacco products and (ii) it must explain where a clerk can
check identification for a date of birth. The training may be
conducted electronically. Each retailer that has a training
program shall require each employee who completes the training
program to sign a form attesting that the employee has
received and completed tobacco training. The form shall be
kept in the employee's file and may be used to provide proof of
training.
(e) Any distributor, secondary distributor, or retailer
aggrieved by any decision of the Department under this Section
may, within 30 20 days after notice of the decision, protest
and request a hearing. Upon receiving a request for a hearing,
the Department shall give notice in writing to the
distributor, secondary distributor, or retailer requesting the

SB3019 Enrolled - 649 - LRB104 20255 HLH 33706 b
hearing that contains a statement of the charges preferred
against the distributor, secondary distributor, or retailer
and that states the time and place fixed for the hearing. The
Department shall hold the hearing in conformity with the
provisions of this Act and then issue its final administrative
decision in the matter to the distributor, secondary
distributor, or retailer. In the absence of a protest and
request for a hearing within 30 20 days, the Department's
decision shall become final without any further determination
being made or notice given.
(f) No license so revoked, as aforesaid, shall be reissued
to any such distributor, secondary distributor, or retailer
within a period of 6 months after the date of the final
determination of such revocation. No such license shall be
reissued at all so long as the person who would receive the
license is ineligible to receive a distributor's license under
this Act for any one or more of the reasons provided for in
Section 4 of this Act, is ineligible to receive a secondary
distributor's license under this Act for any one or more of the
reasons provided for in Section 4c of this Act, or is
determined to be ineligible for a retailer's license under the
Act for any one or more of the reasons provided for in Section
4g of this Act.
The Department upon complaint filed in the circuit court
may by injunction restrain any person who fails, or refuses,
to comply with any of the provisions of this Act from acting as

SB3019 Enrolled - 650 - LRB104 20255 HLH 33706 b
a distributor, secondary distributor, or retailer of
cigarettes in this State.
(Source: P.A. 104-6, eff. 6-16-25.)
(35 ILCS 130/21) (from Ch. 120, par. 453.21)
Sec. 21. Destruction or use of forfeited property.
(a) When any original packages of cigarettes or any
cigarette vending device shall have been declared forfeited to
the State by the Department, as provided in Section 18a of this
Act, and when all proceedings for the judicial review of the
Department's decision have terminated, the Department shall,
to the extent that its decision is sustained on review,
destroy or maintain and use such property in an undercover
capacity.
(b) The Department may, prior to any destruction of
cigarettes, permit the true holder of the trademark rights in
the cigarette brand to inspect such contraband cigarettes in
order to assist the Department in any investigation regarding
such cigarettes.
(c) The cost of destruction shall be assessed against the
owner or the person in possession of the forfeited property.
That cost shall be assessed regardless of whether the
forfeiture is determined by hearing or waiver.
(d) Any person aggrieved by any decision of the Department
under this Section may, within 30 days after notice of the
decision, protest and request a hearing. Upon receiving a

SB3019 Enrolled - 651 - LRB104 20255 HLH 33706 b
written request for a hearing, the Department shall give
notice to the person requesting the hearing of the time and
place fixed for the hearing and shall hold a hearing in
conformity with the provisions of this Act and then issue its
final administrative decision in the matter to that person. In
the absence of a protest and request for a hearing within 30
days, the Department's decision shall become final without any
further determination being made or notice given. If a hearing
has already been set pursuant to Section 18a or Section 6 of
this Act, all issues related to the cost of destruction shall
be heard simultaneously.
(Source: P.A. 94-776, eff. 5-19-06; 95-1053, eff. 1-1-10.)
(35 ILCS 130/9c rep.)
Section 80-15. The Cigarette Tax Act is amended by
repealing Section 9c.
Section 80-20. The Cigarette Use Tax Act is amended by
changing Sections 4, 4b, 6, 7, 7a, and 27 as follows:
(35 ILCS 135/4) (from Ch. 120, par. 453.34)
Sec. 4. Distributor's license.
(a) A distributor maintaining a place of business in this
State, if required to procure a license or allowed to obtain a
permit as a distributor under the Cigarette Tax Act, need not
obtain an additional license or permit under this Section Act,

SB3019 Enrolled - 652 - LRB104 20255 HLH 33706 b
but shall be deemed to be sufficiently licensed or registered
by virtue of his being licensed or registered under the
Cigarette Tax Act.
Every distributor maintaining a place of business in this
State, if not required to procure a license or allowed to
obtain a permit as a distributor under the Cigarette Tax Act,
shall make an a verified application to the Department, by
electronic means, in (upon a form prescribed and furnished by
the Department) for a license to act as a distributor under
this Section. Each applicant for a license under this Section
shall furnish to the Department in a form signed and verified
by the applicant under penalty of perjury, in an electronic
format established by the Department, the following: Act. In
completing such application, the applicant shall furnish such
information as the Department may reasonably require
(1) a statement that the applicant will fully comply
with the Tobacco Products Manufacturers' Escrow
Enforcement Act of 2003; and
(2) the following information:
(A) the name and address of the applicant;
(B) the address of the location at which the
applicant proposes to engage in business as a
distributor of cigarettes in this State; and
(C) such other additional information as the
Department may reasonably require by its rules.
The annual license fee payable to the Department for the

SB3019 Enrolled - 653 - LRB104 20255 HLH 33706 b
initial and each renewal distributor's license shall be $250.
The purpose of such initial and renewal annual license fees
fee is to defray the cost, to the Department, of serializing
cigarette tax stamps. The applicant for license shall pay such
fee to the Department at the time of submitting the
application for license to the Department.
Through June 30, 2027, such Such applicant shall file, with
the his application, a joint and several bond. Such bond shall
be executed to the Department of Revenue, with good and
sufficient surety or sureties residing or licensed to do
business within the State of Illinois, in the amount of
$2,500, conditioned upon the true and faithful compliance by
the licensee with all of the provisions of this Act. Such bond,
or a reissue thereof, or a substitute therefor, shall be kept
in effect during the entire period covered by the license.
Beginning July 1, 2027, applicants are no longer required to
file a bond with their application. The Department shall
discharge any surety and shall release and return any bond
provided to it by a taxpayer under this Section within 90 days
after July 1, 2027, provided that the taxpayer is not
delinquent or deficient in the payment of tax liability.
A separate application for license shall be made and , a
separate annual license fee paid, and a separate bond filed,
for each place of business at or from which the applicant
proposes to act as a distributor under this Section Act and for
which the applicant is not required to procure a license or

SB3019 Enrolled - 654 - LRB104 20255 HLH 33706 b
allowed to obtain a permit as a distributor under the
Cigarette Tax Act.
(b) The following are ineligible to receive a
distributor's license under this Section Act:
(1) a person who is not of good character and
reputation in the community in which the person he
resides; the Department may consider prior conviction of a
felony, but, except as provided in paragraph (2), the
conviction shall not operate as an absolute bar to
licensure;
(2) a person who has been convicted of a felony under
any federal Federal or State law, if the Department, after
investigation and consideration of any mitigating factors
and evidence of rehabilitation contained in the
applicant's record, including those provided in Section 4i
of the Cigarette Tax Act, and a hearing, if requested by
the applicant, determines that such person has not been
sufficiently rehabilitated to warrant the public trust and
the conviction will impair the ability of the person to
engage in the position for which a license is sought;
(3) a corporation, if any officer, manager, or
director thereof, or any stockholder or stockholders
owning in the aggregate more than 5% of the stock of such
corporation, would not be eligible to receive a license
hereunder for any reason;
(4) a person who has delinquent reports under Section

SB3019 Enrolled - 655 - LRB104 20255 HLH 33706 b
25 of the Tobacco Products Manufacturers' Escrow
Enforcement Act of 2003; or
(5) a person, or any person who owns more than 15% 15
percent of the ownership interests in a person or a
related party who:
(A) (a) owes, at the time of application, any
delinquent cigarette taxes that have been determined
by law to be due and unpaid under this Act or any other
tax Act administered by the Department, unless the
license applicant has entered into an agreement
approved by the Department to pay the amount due;
(B) (b) had a license under this Act, the
Cigarette Tax Act, the Tobacco Products Tax Act of
1995, or the Cigarette Machine Operator's Occupation
Tax Act revoked within the past 2 years by the
Department for misconduct relating to stolen or
contraband cigarettes or has been convicted of a State
or federal crime, punishable by imprisonment of one
year or more, relating to stolen or contraband
cigarettes;
(C) (c) manufactures cigarettes, whether in this
State or out of this State, and who is neither (i) a
participating manufacturer as defined in subsection
II(jj) of the "Master Settlement Agreement" as defined
in Sections 10 of the Tobacco Product Products
Manufacturers' Escrow Act and the Tobacco Products

SB3019 Enrolled - 656 - LRB104 20255 HLH 33706 b
Manufacturers' Escrow Enforcement Act of 2003 (30 ILCS
168/10 and 30 ILCS 167/10); nor (ii) in full
compliance with Tobacco Product Products
Manufacturers' Escrow Act and the Tobacco Products
Manufacturers' Escrow Enforcement Act of 2003 (30 ILCS
168/ and 30 ILCS 167/);
(D) (d) has been found by the Department, after
notice and a hearing, to have imported or caused to be
imported into the United States for sale or
distribution any cigarette in violation of 19 U.S.C.
1681a;
(E) (e) has been found by the Department, after
notice and a hearing, to have imported or caused to be
imported into the United States for sale or
distribution or manufactured for sale or distribution
in the United States any cigarette that does not fully
comply with the Federal Cigarette Labeling and
Advertising Act (15 U.S.C. 1331, et seq.); or
(F) (f) has been found by the Department, after
notice and a hearing, to have made a materially
material false statement in the application or has
failed to produce records required to be maintained by
this Act.
(c) Upon receipt approval of an such application and bond
and payment of the required annual license fee from a person
who is eligible to receive a distributor's license under this

SB3019 Enrolled - 657 - LRB104 20255 HLH 33706 b
Section, , the Department shall issue a license to the
applicant. Such license shall permit the applicant to engage
in business as a distributor at or from the place shown in the
his application. All licenses issued by the Department under
this Section Act shall be valid for a period not to exceed one
year after issuance unless sooner revoked, canceled, or
suspended as in this Act provided. No license issued under
this Section Act is transferable or assignable. Such license
shall be conspicuously displayed at the place of business for
which it is issued.
No distributor licensee acquires any vested interest or
compensable property right in a license issued under this
Section Act.
A licensed distributor shall notify the Department of any
change in the information contained on the application form,
including any change in ownership, and shall do so within 30
days after any such change.
Any person aggrieved by any decision of the Department
under this Section may, within 30 20 days after notice of the
decision, protest and request a hearing. Upon receiving a
request for a hearing, the Department shall give notice to the
person requesting the hearing of the time and place fixed for
the hearing and shall hold a hearing in conformity with the
provisions of this Act and then issue its final administrative
decision in the matter to that person. In the absence of a
protest and request for a hearing within 30 20 days, the

SB3019 Enrolled - 658 - LRB104 20255 HLH 33706 b
Department's decision shall become final without any further
determination being made or notice given.
(Source: P.A. 95-1053, eff. 1-1-10; 96-782, eff. 1-1-10.)
(35 ILCS 135/4b)
Sec. 4b. Secondary distributor's license.
(a) No person may engage in business as a secondary
distributor of cigarettes in this State without first having
obtained a license therefor from the Department. A secondary
distributor maintaining a place of business within this State,
if required to procure a license as a secondary distributor
under the Cigarette Tax Act, need not obtain an additional
license or permit under this Section Act, but shall be deemed
to be sufficiently licensed or registered by virtue of his
being licensed or registered under the Cigarette Tax Act.
Every secondary distributor maintaining a place of
business in this State, if not required to procure a license
under the Cigarette Tax Act, shall make application for a
license, by electronic means, in on a form as furnished and
prescribed by the Department. Such applicant shall furnish the
following information to the Department in on a form signed
and verified by the applicant under penalty of perjury, in an
electronic format established by the Department, the
following:
(1) a statement that the applicant will fully comply
with the Tobacco Products Manufacturers' Escrow

SB3019 Enrolled - 659 - LRB104 20255 HLH 33706 b
Enforcement Act of 2003; and
(2) the following information:
(A) the name and address of the applicant;
(B) (2) the address of the location at which the
applicant proposes to engage in business as a
secondary distributor of cigarettes in this State; and
(C) (3) such other additional information as the
Department may reasonably require by its rules.
The annual license fee payable to the Department for the
initial and each renewal secondary distributor's license shall
be $250. The applicant for license shall pay such fee to the
Department at the time of submitting the application for
license to the Department.
A separate application for license shall be made and a
separate annual license fee paid, for each place of business
at or from which the applicant proposes to act as a secondary
distributor under this Section Act and for which the applicant
is not required to procure a license as a secondary
distributor under the Cigarette Tax Act.
(b) The following are ineligible to receive a secondary
distributor's license under this Section Act:
(1) a person who is not of good character and
reputation in the community in which the person he
resides; the Department may consider prior conviction of a
felony, but, except as provided in paragraph (2), the
conviction shall not operate as an absolute bar to

SB3019 Enrolled - 660 - LRB104 20255 HLH 33706 b
licensure;
(2) a person who has been convicted of a felony under
any federal Federal or State law, if the Department, after
investigation and consideration of any mitigating factors
and evidence of rehabilitation contained in the
applicant's record, including those in Section 4i of the
Cigarette Tax Act, and a hearing, if requested by the
applicant, determines that such person has not been
sufficiently rehabilitated to warrant the public trust and
the conviction will impair the ability of the person to
engage in the position for which a license is sought;
(3) a corporation, if any officer, manager, or
director thereof, or any stockholder or stockholders
owning in the aggregate more than 5% of the stock of such
corporation, would not be eligible to receive a license
under this Act hereunder for any reason;
(4) a person who manufactures cigarettes, whether in
this State or out of this State, and who is neither (i) a
participating manufacturer as defined in subsection II(jj)
of the "Master Settlement Agreement" as defined in
Sections 10 of the Tobacco Product Manufacturers' Escrow
Act and the Tobacco Products Manufacturers' Escrow
Enforcement Act of 2003; nor (ii) in full compliance with
Tobacco Product Manufacturers' Escrow Act and the Tobacco
Products Manufacturers' Escrow Enforcement Act of 2003;
(5) a person who has delinquent reports under Section

SB3019 Enrolled - 661 - LRB104 20255 HLH 33706 b
25 of the Tobacco Products Manufacturers' Escrow
Enforcement Act of 2003; or
(6) a person, or any person who owns more than 15% 15
percent of the ownership interests in a person or a
related party who:
(A) owes, at the time of application, any
delinquent cigarette taxes that have been determined
by law to be due and unpaid under this Act or any other
tax Act administered by the Department, unless the
license applicant has entered into an agreement
approved by the Department to pay the amount due;
(B) had a license under this Act, or the Cigarette
Tax Act, the Tobacco Products Tax Act of 1995, or the
Cigarette Machine Operator's Occupation Tax Act
revoked within the past 2 years by the Department for
misconduct relating to stolen or contraband cigarettes
or has been convicted of a State or federal crime,
punishable by imprisonment of one year or more,
relating to stolen or contraband cigarettes;
(C) has been found by the Department, after notice
and a hearing, to have imported or caused to be
imported into the United States for sale or
distribution any cigarette in violation of 19 U.S.C.
1681a;
(D) has been found by the Department, after notice
and a hearing, to have imported or caused to be

SB3019 Enrolled - 662 - LRB104 20255 HLH 33706 b
imported into the United States for sale or
distribution or manufactured for sale or distribution
in the United States any cigarette that does not fully
comply with the Federal Cigarette Labeling and
Advertising Act (15 U.S.C. 1331, et seq.); or
(E) has been found by the Department, after notice
and a hearing, to have made a materially material
false statement in the application or has failed to
produce records required to be maintained by this Act.
(c) The Department, upon receipt of an Upon approval of
such application and payment of the required annual license
fee, from a person who is eligible to receive a secondary
distributor's license under this Section, the Department shall
issue a license to the applicant. Such license shall permit
the applicant to engage in business as a secondary distributor
at or from the place shown in the his application. All licenses
issued by the Department under this Section Act shall be valid
for a period not to exceed one year after issuance unless
sooner revoked, canceled or suspended as provided in this Act
provided. No license issued under this Section Act is
transferable or assignable. Such license shall be
conspicuously displayed at the place of business for which it
is issued.
No secondary distributor licensee acquires any vested
interest or compensable property right in a license issued
under this Section Act.

SB3019 Enrolled - 663 - LRB104 20255 HLH 33706 b
A licensed secondary distributor shall notify the
Department of any change in the information contained on the
application form, including any change in ownership, and shall
do so within 30 days after any such change.
Any person aggrieved by any decision of the Department
under this Section may, within 30 20 days after notice of the
decision, protest and request a hearing. Upon receiving a
request for a hearing, the Department shall give notice to the
person requesting the hearing of the time and place fixed for
the hearing and shall hold a hearing in conformity with the
provisions of this Act and then issue its final administrative
decision in the matter to that person. In the absence of a
protest and request for a hearing within 30 20 days, the
Department's decision shall become final without any further
determination being made or notice given.
(Source: P.A. 96-1027, eff. 7-12-10.)
(35 ILCS 135/6) (from Ch. 120, par. 453.36)
Sec. 6. Revocation, cancellation, or suspension of
license.
(a) The Department may, after notice and hearing as
provided for by this Act, revoke, cancel or suspend the
license of any distributor or secondary distributor for the
violation of any provision of this Act, or for non-compliance
with any provision herein contained, or for any non-compliance
with any lawful rule or regulation promulgated by the

SB3019 Enrolled - 664 - LRB104 20255 HLH 33706 b
Department under Section 21 of this Act, or because the
licensee is determined to be ineligible for a distributor's
license for any one or more of the reasons provided for in
Section 4 of this Act, or because the licensee is determined to
be ineligible for a secondary distributor's license for any
one or more of the reasons provided for in Section 4b or
Section 7a of this Act. However, no such license shall be
revoked, canceled or suspended, except after a hearing by the
Department with notice to the distributor or secondary
distributor, as aforesaid, and affording such distributor or
secondary distributor a reasonable opportunity to appear and
defend, and any distributor or secondary distributor aggrieved
by any decision of the Department with respect thereto may
have the determination of the Department judicially reviewed,
as herein provided.
(b) The Department may revoke, cancel, or suspend the
license of any distributor for a violation of the Tobacco
Products Manufacturers' Escrow Enforcement Act of 2003 as
provided in Section 30 of that Act. The Department may revoke,
cancel, or suspend the license of any secondary distributor
for a violation of subsection (e) of Section 15 of the Tobacco
Products Manufacturers' Escrow Enforcement Act of 2003.
(c) Any distributor or secondary distributor aggrieved by
any decision of the Department under this Section may, within
30 20 days after notice of the decision, protest and request a
hearing. Upon receiving a request for a hearing, the

SB3019 Enrolled - 665 - LRB104 20255 HLH 33706 b
Department shall give notice in writing to the distributor or
secondary distributor requesting the hearing that contains a
statement of the charges preferred against the distributor or
secondary distributor and that states the time and place fixed
for the hearing. The Department shall hold the hearing in
conformity with the provisions of this Act and then issue its
final administrative decision in the matter to the distributor
or secondary distributor. In the absence of a protest and
request for a hearing within 30 20 days, the Department's
decision shall become final without any further determination
being made or notice given.
No license so revoked, shall be reissued to any such
distributor or secondary distributor within a period of 6
months after the date of the final determination of such
revocation. No such license shall be reissued at all so long as
the person who would receive the license is ineligible to
receive a distributor's license under this Act for any one or
more of the reasons provided for in Section 4 of this Act or is
ineligible to receive a secondary distributor's license under
this Act for any one or more of the reasons provided for in
Section 4b and Section 7a of this Act.
The Department upon complaint filed in the circuit court
may by injunction restrain any person who fails, or refuses,
to comply with this Act from acting as a distributor or
secondary distributor of cigarettes in this State.
(Source: P.A. 104-6, eff. 6-16-25.)

SB3019 Enrolled - 666 - LRB104 20255 HLH 33706 b
(35 ILCS 135/7) (from Ch. 120, par. 453.37)
Sec. 7. Distributor's permits.
(a) Cigarettes in original packages contained inside a
sealed transparent wrapper.
(1) The Department may, in its discretion, upon
application, issue permits authorizing the collection of
the tax herein imposed by those out-of-State cigarette
manufacturers who are not required to be licensed as
distributors of cigarettes in this State, but who elect to
qualify under this subsection Act as distributors of
cigarettes in this State, and who, to the satisfaction of
the Department, furnish adequate security to insure
collection and payment of the tax, provided that any such
permit shall extend only to cigarettes which such
permittee manufacturer places in original packages that
are contained inside a sealed transparent wrapper, and
provided that no such permit shall be issued under this
subsection Act to such a manufacturer who has obtained the
permit provided for in Section 4b(a) of the Cigarette Tax
Act. Application for a permit shall be made to the
Department, by electronic means, in a form prescribed by
the Department. Each applicant for a permit under this
subsection shall furnish to the Department in a form
signed and verified by the applicant under penalty of
perjury, in an electronic format established by the

SB3019 Enrolled - 667 - LRB104 20255 HLH 33706 b
Department, the following: Such distributor shall be
issued, without charge, a permit to collect such tax in
such manner, and subject to such reasonable regulations
and agreements as the Department shall prescribe
(A) a statement that the applicant will fully
comply with the Tobacco Products Manufacturers' Escrow
Enforcement Act of 2003; and
(B) the following information:
(i) the name and address of the applicant;
(ii) the address of the location at which the
applicant proposes to engage in business; and
(iii) such other additional information as the
Department may reasonably require by its rules.
When so authorized, it shall be the duty of such
distributor to collect the tax upon all cigarettes which the
distributor he delivers (or causes to be delivered) within
this State to licensed distributors, in the same manner and
subject to the same requirements as a distributor maintaining
a place of business within this State. Such permit shall be in
such form as the Department may prescribe and shall not be
transferable or assignable.
(2) The following are ineligible to receive a
distributor's permit under this subsection Act:
(A) (1) a person who is not of good character and
reputation in the community in which the person he
resides; the Department may consider prior conviction

SB3019 Enrolled - 668 - LRB104 20255 HLH 33706 b
of a felony, but, except as provided in paragraph (B),
the conviction shall not operate as an absolute bar to
licensure;
(B) (2) a person who has been convicted of a felony
under any federal Federal or State law, if the
Department, after investigation and consideration of
any mitigating factors and evidence of rehabilitation
contained in the applicant's record, including those
provided in Section 4i of the Cigarette Tax Act, and a
hearing, if requested by the applicant, determines
that such person has not been sufficiently
rehabilitated to warrant the public trust and the
conviction will impair the ability of the person to
engage in the position for which a license is sought;
(C) (3) a corporation, if any officer, manager or
director thereof, or any stockholder or stockholders
owning in the aggregate more than 5% of the stock of
such corporation, would not be eligible to receive a
permit under this Act for any reason;
(D) a person who has delinquent reports under
Section 25 of the Tobacco Products Manufacturers'
Escrow Enforcement Act of 2003; or
(E) a person, or any person who owns more than 15%
of the ownership interests in a person or a related
party who:
(i) owes, at the time of application, any

SB3019 Enrolled - 669 - LRB104 20255 HLH 33706 b
delinquent taxes that have been determined by law
to be due and unpaid under this Act or any other
tax Act administered by the Department, unless the
applicant has entered into an agreement approved
by the Department to pay the amount due;
(ii) had a license under this Act, the
Cigarette Use Tax Act, the Tobacco Products Tax
Act of 1995, or the Cigarette Machine Operator's
Occupation Tax Act revoked within the past 2 years
by the Department for misconduct relating to
stolen or contraband cigarettes or has been
convicted of a State or federal crime, punishable
by imprisonment of one year or more, relating to
stolen or contraband cigarettes;
(iii) manufactures cigarettes, whether in this
State or out of this State, and who is neither (a)
a participating manufacturer as defined in
subsection II(jj) of the "Master Settlement
Agreement" as defined in Sections 10 of the
Tobacco Product Manufacturers' Escrow Act and the
Tobacco Products Manufacturers' Escrow Enforcement
Act of 2003; nor (b) in full compliance with
Tobacco Product Manufacturers' Escrow Act and the
Tobacco Products Manufacturers' Escrow Enforcement
Act of 2003;
(iv) has been found by the Department, after

SB3019 Enrolled - 670 - LRB104 20255 HLH 33706 b
notice and a hearing, to have imported or caused
to be imported into the United States for sale or
distribution any cigarette in violation of 19
U.S.C. 1681a;
(v) has been found by the Department, after
notice and a hearing, to have imported or caused
to be imported into the United States for sale or
distribution or manufactured for sale or
distribution in the United States any cigarette
that does not fully comply with the Federal
Cigarette Labeling and Advertising Act (15 U.S.C.
1331, et seq.); or
(vi) has been found by the Department, after
notice and a hearing, to have made a materially
false statement in the application or has failed
to produce records required to be maintained by
this Act.
(3) There is no application fee for the initial and
renewal permits. A permittee shall notify the Department
of any change in the information contained on the
application form, including any change in ownership, and
shall do so within 30 days after any such change. Such
permit shall not be transferable or assignable. A
permittee does not acquire any vested interest or
compensable property right in a permit issued under this
subsection.

SB3019 Enrolled - 671 - LRB104 20255 HLH 33706 b
With respect to cigarettes which come within the scope of
such a permit and which any such permittee delivers or causes
to be delivered in Illinois to licensed distributors, such
permittee shall collect the tax imposed by this Act and shall
remit such tax to the Department by the 5th day of each month
for the preceding calendar month. Each such remittance shall
be accompanied by a return filed with the Department in on a
form to be prescribed and furnished by the Department and
shall disclose such information as the Department may lawfully
require. Information that the Department may lawfully require
includes information related to the uniform regulation and
taxation of cigarettes. All returns and supporting schedules
required to be filed under this subsection and all payments
required to be made under this subsection shall be by
electronic means in the form prescribed by the Department The
Department may promulgate rules to require that the
permittee's return be accompanied by appropriate
computer-generated magnetic media supporting schedule data in
the format prescribed by the Department, unless, as provided
by rule, the Department grants an exception upon petition of
the permittee. Each such return shall be accompanied by a copy
of each invoice rendered by the permittee to any licensed
distributor to whom the permittee delivered cigarettes of the
type covered by the permit (or caused cigarettes of the type
covered by the permit to be delivered) in Illinois during the
period covered by such return.

SB3019 Enrolled - 672 - LRB104 20255 HLH 33706 b
Such authority and permit may be suspended, canceled, or
revoked when, at any time, the Department considers that the
security given is inadequate, or that such tax can more
effectively be collected from the person using such cigarettes
in this State or through distributors located in this State,
or whenever the permittee violates any provision of this Act
or any lawful rule or regulation issued by the Department
pursuant to this Act or is determined to be ineligible for a
distributor's permit under this Act as provided in this
Section, or whenever the permittee shall notify the Department
in writing of his desire to have the permit canceled. The
Department shall have the power, in its discretion, to issue a
new permit after such suspension, cancellation, or revocation,
except when the person who would receive the permit is
ineligible to receive a distributor's permit under this Act.
All permits issued by the Department under this subsection
Act shall be valid for not to exceed one year after issuance
unless sooner revoked, canceled or suspended as in this Act
provided.
Any person aggrieved by any decision of the Department
under this subsection may, within 30 days after notice of the
decision, protest and request a hearing. Upon receiving a
request for a hearing, the Department shall give notice to the
person requesting the hearing of the time and place fixed for
the hearing and shall hold a hearing in conformity with the
provisions of this Act and then issue its final administrative

SB3019 Enrolled - 673 - LRB104 20255 HLH 33706 b
decision in the matter to that person. In the absence of a
protest and request for a hearing within 30 days, the
Department's decision shall become final without any further
determination being made or notice given.
(b) Unstamped original packages of cigarettes for
distribution to the public for promotional purposes without
consideration.
(1) Out-of-state cigarette manufacturers who are not
required to be licensed as distributors of cigarettes in
this State and who do not elect to obtain approval under
subsection (a) to pay the tax imposed by this Act, but who
elect to qualify under this subsection Act as distributors
of cigarettes in this State for purposes of shipping and
delivering unstamped original packages of cigarettes into
this State to licensed distributors, shall obtain a permit
from the Department, provided that no such permit shall be
issued under this subsection to a manufacturer who has
obtained the permit provided for in Section 4b(b) of the
Cigarette Tax Act. These permits shall be issued without
charge in such form as the Department may prescribe and
shall not be transferable or assignable.
Application for permit shall be made to the
Department, by electronic means, in a form prescribed by
the Department. Each applicant for a permit under this
subsection shall furnish to the Department in a form
signed and verified by the applicant under penalty of

SB3019 Enrolled - 674 - LRB104 20255 HLH 33706 b
perjury, in an electronic format established by the
Department, the following:
(A) a statement that the applicant will fully
comply with the Tobacco Products Manufacturers' Escrow
Enforcement Act of 2003; and
(B) the following information:
(i) the name and address of the applicant;
(ii) the address of the location at which the
applicant proposes to engage in business; and
(iii) such other additional information as the
Department may reasonably require by its rules.
(2) The following are ineligible to receive a
distributor's permit under this subsection:
(A) (1) a person who is not of good character and
reputation in the community in which the person he or
she resides; the Department may consider prior
conviction of a felony, but, except as provided in
paragraph (B), the conviction shall not operate as an
absolute bar to licensure;
(B) (2) a person who has been convicted of a felony
under any federal or State law, if the Department,
after investigation and consideration of any
mitigating factors and evidence of rehabilitation
contained in the applicant's record, including those
provided in Section 4i of the Cigarette Tax Act, and a
hearing, if requested by the applicant, determines

SB3019 Enrolled - 675 - LRB104 20255 HLH 33706 b
that the person has not been sufficiently
rehabilitated to warrant the public trust and the
conviction will impair the ability of the person to
engage in the position for which a permit is sought;
and
(C) (3) a corporation, if any officer, manager or
director thereof, or any stockholder or stockholders
owning in the aggregate more than 5% of the stock of
the corporation, would not be eligible to receive a
permit under this Act for any reason;
(D) a person who has delinquent reports under
Section 25 of the Tobacco Products Manufacturers'
Escrow Enforcement Act of 2003 (30 ILCS 167/25); or
(E) a person, or any person who owns more than 15%
of the ownership interests in a person or a related
party who:
(i) owes, at the time of application, any
delinquent taxes that have been determined by law
to be due and unpaid under this Act or any other
tax Act administered by the Department, unless the
applicant has entered into an agreement approved
by the Department to pay the amount due;
(ii) had a license under this Act, the
Cigarette Tax Act, the Tobacco Products Tax Act of
1995, or the Cigarette Machine Operator's
Occupation Tax Act revoked within the past 2 years

SB3019 Enrolled - 676 - LRB104 20255 HLH 33706 b
by the Department for misconduct relating to
stolen or contraband cigarettes or has been
convicted of a State or federal crime, punishable
by imprisonment of one year or more, relating to
stolen or contraband cigarettes;
(iii) manufactures cigarettes, whether in this
State or out of this State, and who is neither (a)
a participating manufacturer as defined in
subsection II(jj) of the "Master Settlement
Agreement" as defined in Sections 10 of the
Tobacco Product Manufacturers' Escrow Act and the
Tobacco Products Manufacturers' Escrow Enforcement
Act of 2003; nor (b) in full compliance with
Tobacco Product Manufacturers' Escrow Act and the
Tobacco Products Manufacturers' Escrow Enforcement
Act of 2003;
(iv) has been found by the Department, after
notice and a hearing, to have imported or caused
to be imported into the United States for sale or
distribution any cigarette in violation of 19
U.S.C. 1681a;
(v) has been found by the Department, after
notice and a hearing, to have imported or caused
to be imported into the United States for sale or
distribution or manufactured for sale or
distribution in the United States any cigarette

SB3019 Enrolled - 677 - LRB104 20255 HLH 33706 b
that does not fully comply with the Federal
Cigarette Labeling and Advertising Act (15 U.S.C.
1331, et seq.); or
(vi) has been found by the Department, after
notice and a hearing, to have made a materially
false statement in the application or has failed
to produce records required to be maintained by
this Act.
(3) There is no application fee for the initial and
renewal permits. A permittee shall notify the Department
of any change in the information contained on the
application form, including any change in ownership, and
shall do so within 30 days after any such change. Such
permit shall not be transferable or assignable. A
permittee does not acquire any vested interest or
compensable property right in a permit issued under this
subsection.
With respect to original packages of cigarettes such
permittee delivers or causes to be delivered in Illinois and
distributed to the public for promotional purposes without
consideration, the permittee shall pay the tax imposed by this
Act by remitting the amount thereof to the Department by the
5th day of each month covering cigarettes shipped or otherwise
delivered in Illinois for those purposes during the preceding
calendar month. The permittee, before delivering those
cigarettes or causing those cigarettes to be delivered in this

SB3019 Enrolled - 678 - LRB104 20255 HLH 33706 b
State, shall evidence the his or her obligation to remit the
taxes due with respect to those cigarettes by imprinting
language to be prescribed by the Department on each original
package of cigarettes, in such place thereon and in such
manner also to be prescribed by the Department. The imprinted
language shall acknowledge the permittee's payment of or
liability for the tax imposed by this Act with respect to the
distribution of those cigarettes.
With respect to cigarettes such permittee delivers or
causes to be delivered in Illinois to Illinois licensed
distributors or distributed to the public for promotional
purposes, the permittee shall, by the 5th day of each month,
file with the Department, a report covering cigarettes shipped
or otherwise delivered in Illinois to licensed distributors or
distributed to the public for promotional purposes during the
preceding calendar month on a form to be prescribed and
furnished by the Department and shall disclose such other
information as the Department may lawfully require.
Information that the Department may lawfully require includes
information related to the uniform regulation and taxation of
cigarettes. All reports required to be filed under this
subsection and all payments required to be made under this
subsection shall be by electronic means in the form prescribed
by the Department The Department may promulgate rules to
require that the permittee's report be accompanied by
appropriate computer-generated magnetic media supporting

SB3019 Enrolled - 679 - LRB104 20255 HLH 33706 b
schedule data in the format prescribed by the Department,
unless, as provided by rule, the Department grants an
exception upon petition of the permittee. Each such report
shall be accompanied by a copy of each invoice rendered by the
permittee to any purchaser to whom the permittee delivered
cigarettes of the type covered by the permit (or caused
cigarettes of the type covered by the permit to be delivered)
in Illinois during the period covered by such report.
Such permit may be suspended, canceled, or revoked
whenever the permittee violates any provision of this Act or
any lawful rule or regulation issued by the Department
pursuant to this Act, is determined to be ineligible for a
distributor's permit under this Act as provided in this
subsection Section, or notifies the Department in writing of
his or her desire to have the permit canceled. The Department
shall have the power, in its discretion, to issue a new permit
after such suspension, cancellation, or revocation, except
when the person who would receive the permit is ineligible to
receive a distributor's permit under this Act.
All permits issued by the Department under this subsection
Act shall be valid for a period not to exceed one year after
issuance unless sooner revoked, canceled, or suspended as in
this Act provided.
Any person aggrieved by any decision of the Department
under this subsection may, within 30 days after notice of the
decision, protest and request a hearing. Upon receiving a

SB3019 Enrolled - 680 - LRB104 20255 HLH 33706 b
request for a hearing, the Department shall give notice to the
person requesting the hearing of the time and place fixed for
the hearing and shall hold a hearing in conformity with the
provisions of this Act and then issue its final administrative
decision in the matter to that person. In the absence of a
protest and request for a hearing within 30 days, the
Department's decision shall become final without any further
determination being made or notice given.
(Source: P.A. 96-782, eff. 1-1-10.)
(35 ILCS 135/7a)
Sec. 7a. Discretionary secondary distributor's license.
(a) The Department may, in its discretion, upon
application, issue a secondary distributor's license to
persons who are not required to be licensed as secondary
distributors of cigarettes in this State, but who elect to
qualify under this Section Act as discretionary secondary
distributors of cigarettes. Such discretionary secondary
distributor shall be issued, without charge, a license to make
sales for resale to Illinois retailers, subject to such
reasonable requirements as the Department shall prescribe.
Each applicant for a license under this Section shall furnish
the following information to the Department, by electronic
means, in on a form signed and verified by the applicant under
penalty of perjury, in an electronic format established by the
Department, the following:

SB3019 Enrolled - 681 - LRB104 20255 HLH 33706 b
(1) a statement that the applicant will fully comply
with the Tobacco Products Manufacturers' Escrow
Enforcement Act of 2003; and
(2) the following information:
(A) (a) the name and address of the applicant;
(B) (b) the address of the location at which the
applicant proposes to engage in business as a
discretionary secondary distributor of cigarettes; and
(C) (c) such other additional information as the
Department may reasonably require by its rules.
A separate application for license shall be made for each
place of business at or from which the applicant proposes to
act as a discretionary secondary distributor under this
Section Act and for which the applicant is not required to
procure a license as a secondary distributor under the
Cigarette Tax Act or Cigarette Use Tax Act.
(b) The following are ineligible to receive a
discretionary secondary distributor's license under this
Section Act:
(1) a person who is not of good character and
reputation in the community in which the person he
resides; the Department may consider prior conviction of a
felony, but, except as provided in paragraph (2), the
conviction shall not operate as an absolute bar to
licensure;
(2) a person who has been convicted of a felony under

SB3019 Enrolled - 682 - LRB104 20255 HLH 33706 b
any federal Federal or State law, if the Department, after
investigation and consideration of any mitigating factors
and evidence of rehabilitation contained in the
applicant's record, including those in Section 4i of the
Cigarette Tax Act, and a hearing, if requested by the
applicant, determines that such person has not been
sufficiently rehabilitated to warrant the public trust and
the conviction will impair the ability of the person to
engage in the position for which a license is sought;
(3) a corporation, if any officer, manager or director
thereof, or any stockholder or stockholders owning in the
aggregate more than 5% of the stock of such corporation,
would not be eligible to receive a license under this Act
hereunder for any reason;
(4) a person who manufactures cigarettes, whether in
this State or out of this State, and who is neither (i) a
participating manufacturer as defined in subsection II(jj)
of the "Master Settlement Agreement" as defined in
Sections 10 of the Tobacco Product Manufacturers' Escrow
Act and the Tobacco Products Manufacturers' Escrow
Enforcement Act of 2003; nor (ii) in full compliance with
Tobacco Product Manufacturers' Escrow Act and the Tobacco
Products Manufacturers' Escrow Enforcement Act of 2003;
(5) a person who has delinquent reports under Section
25 of the Tobacco Products Manufacturers' Escrow
Enforcement Act of 2003; or

SB3019 Enrolled - 683 - LRB104 20255 HLH 33706 b
(6) a person, or any person who owns more than 15% 15
percent of the ownership interests in a person or a
related party who:
(A) owes, at the time of application, any
delinquent cigarette taxes that have been determined
by law to be due and unpaid under this Act or any other
tax Act administered by the Department, unless the
license applicant has entered into an agreement
approved by the Department to pay the amount due;
(B) had a license under this Act, or the Cigarette
Tax Act, the Tobacco Products Tax Act of 1995, or the
Cigarette Machine Operator's Occupation Tax Act
revoked within the past 2 years by the Department for
misconduct relating to stolen or contraband cigarettes
or has been convicted of a State or federal crime,
punishable by imprisonment of one year or more,
relating to stolen or contraband cigarettes;
(C) has been found by the Department, after notice
and a hearing, to have imported or caused to be
imported into the United States for sale or
distribution any cigarette in violation of 19 U.S.C.
1681a;
(D) has been found by the Department, after notice
and a hearing, to have imported or caused to be
imported into the United States for sale or
distribution or manufactured for sale or distribution

SB3019 Enrolled - 684 - LRB104 20255 HLH 33706 b
in the United States any cigarette that does not fully
comply with the Federal Cigarette Labeling and
Advertising Act (15 U.S.C. 1331, et seq.); or
(E) has been found by the Department, after notice
and a hearing, to have made a materially material
false statement in the application or has failed to
produce records required to be maintained by this Act.
(c) The Department, upon receipt of application from a
person who is eligible to receive a discretionary secondary
distributor's license under this Section, Upon approval of
such application, the Department shall issue a license to the
applicant. Such license shall permit the applicant to engage
in business as a discretionary secondary distributor at or
from the place shown in the his application. There is no
application fee for the initial and renewal permits. All
licenses issued by the Department under this Section Act shall
be valid for a period not to exceed one year after issuance
unless sooner revoked, canceled, or suspended as provided in
this Act provided. No license issued under this Section Act is
transferable or assignable. Such license shall be
conspicuously displayed at the place of business for which it
is issued.
No discretionary secondary distributor licensee acquires
any vested interest or compensable property right in a license
issued under this Section Act.
A licensed discretionary secondary distributor shall

SB3019 Enrolled - 685 - LRB104 20255 HLH 33706 b
notify the Department of any change in the information
contained on the application form, including any change in
ownership, and shall do so within 30 days after any such
change.
Any person aggrieved by any decision of the Department
under this Section may, within 30 20 days after notice of the
decision, protest and request a hearing. Upon receiving a
request for a hearing, the Department shall give notice to the
person requesting the hearing of the time and place fixed for
the hearing and shall hold a hearing in conformity with the
provisions of this Act and then issue its final administrative
decision in the matter to that person. In the absence of a
protest and request for a hearing within 30 20 days, the
Department's decision shall become final without any further
determination being made or notice given.
Such authority and license may be suspended, canceled, or
revoked whenever the licensee violates any provision of this
Act or any lawful rule or regulation issued by the Department
pursuant to this Act or is determined to be ineligible for a
discretionary secondary distributor's permit under this Act as
provided in this Section, or whenever the licensee shall
notify the Department in writing of his desire to have the
license canceled. The Department shall have the power, in its
discretion, to issue a new license after such suspension,
cancellation, or revocation, except when the person who would
receive the license is ineligible to receive a discretionary

SB3019 Enrolled - 686 - LRB104 20255 HLH 33706 b
secondary distributor's license under this Section Act.
(Source: P.A. 96-1027, eff. 7-12-10.)
(35 ILCS 135/27) (from Ch. 120, par. 453.57)
Sec. 27. Destruction or use of forfeited property.
(a) When any original packages of cigarettes or any
cigarette vending device shall have been declared forfeited to
the State by the Department, as provided in Section 25 of this
Act, and when all proceedings for the judicial review of the
Department's decision have terminated, the Department shall,
to the extent that its decision is sustained on review,
destroy or maintain and use such property in an undercover
capacity.
(b) The Department may, prior to any destruction of
cigarettes, permit the true holder of the trademark rights in
the cigarette brand to inspect such contraband cigarettes, in
order to assist the Department in any investigation regarding
such cigarettes.
(c) The cost of destruction shall be assessed against the
owner or the person in possession of the forfeited property.
Such cost shall be assessed regardless of whether the
forfeiture is determined by hearing or waiver.
(d) Any person aggrieved by any decision of the Department
under this Section may, within 30 days after notice of the
decision, protest and request a hearing. Upon receiving a
written request for a hearing, the Department shall give

SB3019 Enrolled - 687 - LRB104 20255 HLH 33706 b
notice to the person requesting the hearing of the time and
place fixed for the hearing and shall hold a hearing in
conformity with the provisions of this Act and then issue its
final administrative decision in the matter to that person. In
the absence of a protest and request for a hearing within 30
days, the Department's decision shall become final without any
further determination being made or notice given. If a hearing
has already been set pursuant to Section 25 or Section 6 of
this Act, all issues related to the cost of destruction shall
be heard simultaneously.
(Source: P.A. 94-776, eff. 5-19-06; 95-1053, eff. 1-1-10.)
Section 80-25. The Tobacco Products Tax Act of 1995 is
amended by changing Sections 10-20, 10-21, 10-25, 10-55,
10-56, and 10-58 as follows:
(35 ILCS 143/10-20)
Sec. 10-20. Distributor's licenses.
(a) It shall be unlawful for any person to engage in
business as a distributor of tobacco products within the
meaning of this Act without first having obtained a license to
do so from the Department. Application for that license shall
be made to the Department, by electronic means, in a form
prescribed and furnished by the Department. Each applicant for
a license shall furnish to the Department in on a form, signed
and verified by the applicant under penalty of perjury, in an

SB3019 Enrolled - 688 - LRB104 20255 HLH 33706 b
electronic format established by the Department, the following
information:
(1) a statement that the applicant will fully comply
with the Tobacco Products Manufacturers' Escrow
Enforcement Act of 2003; and
(2) the following information:
(A) the The name and address of the applicant; .
(B) the (2) The address of the location at which
the applicant proposes to engage in business as a
distributor of tobacco products; and .
(C) such other additional (3) Other information as
the Department may reasonably require by its rules.
Each distributor, except for a distributor who is applying
for a distributor's license under this Act for the first time
or a distributor who, in the preceding year, had less than
$50,000 of tax liability, shall also file with the Department
a bond in an amount not to exceed (i) 3 times the amount of the
distributor's average monthly tax liability or (ii) $50,000,
whichever amount is lower, on a form to be approved by the
Department. The Department shall fix the amount of the bond
for each applicant, taking into consideration the amount of
money expected to become due from the applicant under this
Act. The amount of bond required by the Department shall be an
amount that, in its opinion, will protect the State of
Illinois against failure to pay the amount that may become due
from the applicant under this Act. Except as otherwise

SB3019 Enrolled - 689 - LRB104 20255 HLH 33706 b
provided in this Section, the bond, a reissue, or a substitute
shall be kept in full force and effect during the entire period
covered by the license. A separate application for license
shall be made, and bond filed, for each place of business at
which a person who is required to procure a distributor's
license proposes to engage in business as a distributor under
this Act.
(b) The following are ineligible to receive a
distributor's license under this Section:
(1) a person who is not of good character and
reputation in the community in which the person resides;
the Department may consider prior conviction of a felony
but, except as provided in paragraph (2), the conviction
shall not operate as an absolute bar to licensure;
(2) a person who has been convicted of a felony under
any federal or State law, if the Department, after
investigation and consideration of any mitigating factors
and evidence of rehabilitation contained in the
applicant's record, including those in Section 4i of the
Cigarette Tax Act, and hearing, if requested by the
applicant, determines that such person has not been
sufficiently rehabilitated to warrant the public trust and
the conviction will impair the ability of the person to
engage in the position for which a license is sought;
(3) a corporation, if any officer, manager, or
director thereof, or any stockholder or stockholders

SB3019 Enrolled - 690 - LRB104 20255 HLH 33706 b
owning in the aggregate more than 5% of the stock of such
corporation, would not be eligible to receive a license
under this Act for any reason;
(4) a person who has delinquent reports under Section
25 of the Tobacco Products Manufacturers' Escrow
Enforcement Act of 2003; or
(5) a person, or any person who owns more than 15% of
the ownership interests in a person or a related party
who:
(A) owes, at the time of application, any
delinquent taxes that have been determined by law to
be due and unpaid under this Act or any other tax Act
administered by the Department, unless the license
applicant has entered into an agreement approved by
the Department to pay the amount due;
(B) had a license under this Act, the Cigarette
Tax Act, the Cigarette Use Tax Act, or the Cigarette
Machine Operator's Occupation Tax Act revoked within
the past 2 years by the Department for misconduct
relating to stolen or contraband cigarettes or has
been convicted of a State or federal crime, punishable
by imprisonment of one year or more, relating to
stolen or contraband cigarettes;
(C) manufactures cigarettes, whether in this State
or out of this State, and who is neither (i) a
participating manufacturer as defined in subsection

SB3019 Enrolled - 691 - LRB104 20255 HLH 33706 b
II(jj) of the "Master Settlement Agreement" as defined
in Sections 10 of the Tobacco Product Manufacturers'
Escrow Act and the Tobacco Products Manufacturers'
Escrow Enforcement Act of 2003; nor (ii) in full
compliance with Tobacco Product Manufacturers' Escrow
Act and the Tobacco Products Manufacturers' Escrow
Enforcement Act of 2003;
(D) has been found by the Department, after notice
and a hearing, to have imported or caused to be
imported into the United States for sale or
distribution any cigarette in violation of 19 U.S.C.
1681a;
(E) has been found by the Department, after notice
and a hearing, to have imported or caused to be
imported into the United States for sale or
distribution or manufactured for sale or distribution
in the United States any cigarette that does not fully
comply with the Federal Cigarette Labeling and
Advertising Act (15 U.S.C. 1331, et seq.); or
(F) has been found by the Department, after notice
and a hearing, to have made a materially false
statement in the application or has failed to produce
records required to be maintained by this Act.
(c) The Department, upon receipt of an application and
bond, if required, in proper form, from a person who is
eligible to receive a distributor's license shall issue to the

SB3019 Enrolled - 692 - LRB104 20255 HLH 33706 b
applicant a license, in a form prescribed by the Department.
The license , which shall allow permit the applicant to whom it
is issued to engage in business as a distributor at the place
shown on the his or her application. The license shall be
issued by the Department without charge or cost to the
applicant. No license issued under this Section Act is
transferable or assignable. The license shall be conspicuously
displayed in the place of business conducted by the licensee
under the license. No distributor licensee acquires any vested
interest or compensable property right in a license issued
under this Section.
Licenses issued by the Department under this Section Act
shall be valid for a period not to exceed one year after
issuance unless sooner revoked, canceled, or suspended as
provided in this Act.
A licensed distributor shall notify the Department of any
change in the information contained on the application form,
including any change in ownership and shall do so within 30
days after any such change No license shall be issued to any
person who is in default to the State of Illinois for moneys
due under this Act or any other tax Act administered by the
Department.
The Department shall discharge any surety and shall
release and return any bond provided to it by a taxpayer under
this Section within 90 days after:
(1) the taxpayer becomes a prior continuous compliance

SB3019 Enrolled - 693 - LRB104 20255 HLH 33706 b
taxpayer; or
(2) the taxpayer has ceased to collect receipts on
which the taxpayer is required to remit the tax under this
Act to the Department, has filed a final tax return, and
has paid to the Department an amount sufficient to
discharge his remaining tax liability as determined by the
Department under this Act.
For the purposes of item (2), the Department shall make a
final determination of the taxpayer's outstanding tax
liability as expeditiously as possible after the taxpayer's
final tax return under this Act has been filed. If the
Department will be unable to make such a final determination
within 45 days after receiving the taxpayer's final tax
return, then the Department shall notify the taxpayer within
that 45-day period stating the reasons why it is unable to make
the final determination within that 45-day period.
The Department may, in its discretion, upon application,
authorize the payment of the tax imposed under Section 10-10
by any distributor or manufacturer not otherwise subject to
the tax imposed under this Act who, to the satisfaction of the
Department, furnishes adequate security to ensure payment of
the tax. The distributor or manufacturer shall be issued,
without charge, a license to remit the tax. When so
authorized, it shall be the duty of the distributor or
manufacturer to remit the tax imposed upon the wholesale price
of tobacco products sold or otherwise disposed of to retailers

SB3019 Enrolled - 694 - LRB104 20255 HLH 33706 b
or consumers located in this State, in the same manner and
subject to the same requirements as any other distributor or
manufacturer licensed under this Act.
The Department may revoke, suspend, or cancel the license
of a distributor of roll-your-own tobacco, ( as that term is
used in Section 10 of the Tobacco Product Manufacturers'
Escrow Act, ) under this Act if the tobacco product
manufacturer, as defined in Section 10 of the Tobacco Product
Manufacturers' Escrow Act, that made or sold the roll-your-own
tobacco has failed to become a participating manufacturer, as
defined in subdivision (a)(1) of Section 15 of the Tobacco
Product Manufacturers' Escrow Act, or has failed to create a
qualified escrow fund for any roll-your-own tobacco
manufactured by the tobacco product manufacturer and sold in
this State or otherwise failed to bring itself into compliance
with subdivision (a)(2) of Section 15 of the Tobacco Product
Manufacturers' Escrow Act.
Any applicant applying for a distributor's license after
the applicant's distributor's license has been revoked by the
Department shall also file a bond with the Department in an
amount equal to 3 times the amount of the applicant's average
monthly tax liability under this Act, as that average monthly
tax liability was calculated immediately prior to the
revocation of the applicant's distributor's license.
Any person aggrieved by any decision of the Department
under this Section may, within 30 20 days after notice of the

SB3019 Enrolled - 695 - LRB104 20255 HLH 33706 b
that decision, protest and request a hearing, whereupon the
Department must give notice to that person of the time and
place fixed for the hearing and must hold a hearing in
conformity with the provisions of this Act and then issue its
final administrative decision in the matter to that person. In
the absence of such a protest within 30 20 days, the
Department's decision becomes final without any further
determination being made or notice given.
(Source: P.A. 103-1001, eff. 8-9-24; 103-1055, eff. 12-20-24.)
(35 ILCS 143/10-21)
Sec. 10-21. Retailer's license. Beginning on January 1,
2016, no person may engage in business as a retailer of tobacco
products in this State without first having obtained a license
from the Department. Application for license shall be made to
the Department, by electronic means, in a form prescribed by
the Department. Each applicant for a license under this
Section shall furnish to the Department, in a form signed and
verified by the applicant under penalty of perjury, in an
electronic format established by the Department, the following
information:
(1) the name and address of the applicant;
(2) the address of the location at which the applicant
proposes to engage in business as a retailer of tobacco
products in this State;
(3) such other additional information as the

SB3019 Enrolled - 696 - LRB104 20255 HLH 33706 b
Department may reasonably lawfully require by its rules
and regulations.
The annual license fee payable to the Department for each
retailer's license shall be $150. The fee will be deposited
into the Tax Compliance and Administration Fund and shall be
used for the cost of tobacco retail inspection and contraband
tobacco and tobacco smuggling with at least two-thirds of the
money being used for contraband tobacco and tobacco smuggling
operations and enforcement.
Each applicant for license shall pay such fee to the
Department at the time of submitting its application for
license to the Department. The Department shall require an
applicant for a license under this Section to electronically
file and pay the fee.
A separate application for license shall be made and a
separate annual license fee shall be paid for each place of
business at which a person who is required to procure a
retailer's license under this Section proposes to engage in
business as a retailer in Illinois under this Section Act.
The following are ineligible to receive a retailer's
license under this Act:
(1) a person who has been convicted of a felony under
any federal or State law for smuggling cigarettes or
tobacco products or tobacco tax evasion, if the
Department, after investigation and a hearing if requested
by the applicant, determines that such person has not been

SB3019 Enrolled - 697 - LRB104 20255 HLH 33706 b
sufficiently rehabilitated to warrant the public trust;
and
(2) a corporation, if any officer, manager, or
director thereof, or any stockholder or stockholders
owning in the aggregate more than 5% of the stock of such
corporation, would not be eligible to receive a license
under this Act for any reason; a limited liability
company, if any member or managing member would not be
eligible to receive a license under this Act for any
reason; a partnership, if any partner would not be
eligible to receive a license under this Act for any
reason.
The Department, upon receipt of an application and license
fee, in proper form, from a person who is eligible to receive a
retailer's license under this Act, shall issue to such
applicant a license in form as prescribed by the Department,
which license shall permit the applicant to which it is issued
to engage in business as a retailer under this Act at the place
shown in the his application. All licenses issued by the
Department under this Section shall be valid for a period not
to exceed one year after issuance unless sooner revoked,
canceled or suspended as provided in this Act. No license
issued under this Section is transferable or assignable. Such
license shall be conspicuously displayed in the place of
business conducted by the licensee in Illinois under such
license. No licensee acquires any vested interest or

SB3019 Enrolled - 698 - LRB104 20255 HLH 33706 b
compensable property right in a license issued under this
Section.
A licensed retailer shall notify the Department of any
change in the information contained on the application form,
including any change in ownership and shall do so within 30
days after any such change.
A person who obtains a license as a retailer who ceases to
do business as specified in the license, or who never
commenced business, or whose license is suspended or revoked,
shall immediately surrender the license to the Department. The
Department shall not issue a license to a retailer unless the
retailer is also validly registered under the Retailers'
Retailers Occupation Tax Act.
A retailer as defined under this Act need not obtain an
additional license under this Act, but shall be deemed to be
sufficiently licensed by virtue of his being properly licensed
as a retailer under Section 4g of the Cigarette Tax Act.
Any person aggrieved by any decision of the Department
under this Section may, within 30 days after notice of the
decision, protest and request a hearing. Upon receiving a
request for a hearing, the Department shall give notice to the
person requesting the hearing of the time and place fixed for
the hearing and shall hold a hearing in conformity with the
provisions of this Act and then issue its final administrative
decision in the matter to that person. In the absence of a
protest and request for a hearing within 30 days, the

SB3019 Enrolled - 699 - LRB104 20255 HLH 33706 b
Department's decision shall become final without any further
determination being made or notice given.
(Source: P.A. 104-6, eff. 7-1-25.)
(35 ILCS 143/10-25)
Sec. 10-25. License actions.
(a) The Department may, after notice and a hearing,
revoke, cancel, or suspend the license of any distributor or
retailer who violates any of the provisions of this Act, fails
to keep books and records as required under this Act, fails to
make books and records available for inspection upon demand by
a duly authorized employee of the Department, or violates a
rule or regulation of the Department for the administration
and enforcement of this Act. The notice shall specify the
alleged violation or violations upon which the revocation,
cancellation, or suspension proceeding is based.
(b) The Department may, after notice and hearing as
provided for by this Act, revoke, cancel, or suspend the
license of any distributor or retailer for the violation of
any provision of this Act, or for noncompliance with the
provisions of this Act, or for any noncompliance with any
lawful rule promulgated by the Department under this Act, or
because the licensee is determined to be ineligible for a
distributor's license for any one or more of the reasons
provided for in Section 10-20 of this Act, or because the
licensee is determined to be ineligible for a retailer's

SB3019 Enrolled - 700 - LRB104 20255 HLH 33706 b
license for any one or more of the reasons provided for in
Section 10-21 of this Act.
(b-5) The Department may revoke, cancel, or suspend the
license of any distributor for a violation of the Tobacco
Products Manufacturers' Escrow Enforcement Act of 2003 as
provided in Section 30 of that Act.
(c) If the retailer has a training program that
facilitates compliance with minimum-age tobacco laws, the
Department shall suspend for 3 days the license of that
retailer for a fourth or subsequent violation of the
Prevention of Tobacco Use by Persons under 21 Years of Age and
Sale and Distribution of Tobacco Products Act, as provided in
subsection (a) of Section 2 of that Act. For the purposes of
this Section, any violation of subsection (a) of Section 2 of
the Prevention of Tobacco Use by Persons under 21 Years of Age
and Sale and Distribution of Tobacco Products Act occurring at
the retailer's licensed location, during a 24-month period,
shall be counted as a violation against the retailer.
If the retailer does not have a training program that
facilitates compliance with minimum-age tobacco laws, the
Department shall suspend for 3 days the license of that
retailer for a second violation of the Prevention of Tobacco
Use by Persons under 21 Years of Age and Sale and Distribution
of Tobacco Products Act, as provided in subsection (a-5) of
Section 2 of that Act.
If the retailer does not have a training program that

SB3019 Enrolled - 701 - LRB104 20255 HLH 33706 b
facilitates compliance with minimum-age tobacco laws, the
Department shall suspend for 7 days the license of that
retailer for a third violation of the Prevention of Tobacco
Use by Persons under 21 Years of Age and Sale and Distribution
of Tobacco Products Act, as provided in subsection (a-5) of
Section 2 of that Act.
If the retailer does not have a training program that
facilitates compliance with minimum-age tobacco laws, the
Department shall suspend for 30 days the license of a retailer
for a fourth or subsequent violation of the Prevention of
Tobacco Use by Persons under 21 Years of Age and Sale and
Distribution of Tobacco Products Act, as provided in
subsection (a-5) of Section 2 of that Act.
A training program that facilitates compliance with
minimum-age tobacco laws must include at least the following
elements: (i) it must explain that only individuals displaying
valid identification demonstrating that they are 21 years of
age or older shall be eligible to purchase cigarettes or
tobacco products and (ii) it must explain where a clerk can
check identification for a date of birth. The training may be
conducted electronically. Each retailer that has a training
program shall require each employee who completes the training
program to sign a form attesting that the employee has
received and completed tobacco training. The form shall be
kept in the employee's file and may be used to provide proof of
training.

SB3019 Enrolled - 702 - LRB104 20255 HLH 33706 b
(c-5) Any distributor or retailer aggrieved by any
decision of the Department under this Section may, within 30
days after notice of the decision, protest and request a
hearing. Upon receiving a written request for a hearing, the
Department shall give notice in writing to the distributor or
retailer requesting the hearing that contains a statement of
the charges preferred against the distributor or retailer and
that states the time and place fixed for the hearing. The
Department shall hold the hearing in conformity with the
provisions of this Act and then issue its final administrative
decision in the matter to the distributor or retailer. In the
absence of a written protest and request for a hearing within
30 days, the Department's decision shall become final without
any further determination being made or notice given.
(c-10) No license so revoked shall be reissued to any
distributor or retailer for a period of 6 months after the date
of the final determination of such revocation. No license
shall be reissued at all so long as the person who would
receive the license is ineligible to receive a distributor's
license under this Act for any one or more of the reasons
provided for in Section 10-20 of this Act or a retailer's
license under this Act for any one or more of the reasons
provided for in Section 10-21 of this Act.
(d) The Department may, by application to any circuit
court, obtain an injunction restraining any person who engages
in business as a distributor of tobacco products without a

SB3019 Enrolled - 703 - LRB104 20255 HLH 33706 b
license (either because the his or her license has been
revoked, canceled, or suspended or because of a failure to
obtain a license in the first instance) from engaging in that
business until that person, as if that person were a new
applicant for a license, complies with all of the conditions,
restrictions, and requirements of Section 10-20 of this Act
and qualifies for and obtains a license. Refusal or neglect to
obey the order of the court may result in punishment for
contempt.
(e) The Department, upon complaint filed in the circuit
court, may, by injunction, restrain any person who fails or
refuses to comply with any of the provisions of this Act from
acting as a distributor or retailer in this State.
(Source: P.A. 104-6, eff. 6-16-25.)
(35 ILCS 143/10-55)
Sec. 10-55. Arrest; search and seizure without warrant.
Any duly authorized employee of the Department (i) may arrest
without warrant any person committing in his or her presence a
violation of any of the provisions of this Act, (ii) may
without a search warrant inspect all tobacco products located
in any place of business, (iii) may seize any tobacco products
possessed in violation in accordance with the provisions of
this Act, and (iv) may seize any vending device in which those
tobacco products that violate this Act are found; and (v) may
seize any tobacco products on which the tax imposed under this

SB3019 Enrolled - 704 - LRB104 20255 HLH 33706 b
Act has not been paid. The tobacco products and vending
devices so seized are subject to confiscation and forfeiture
as provided in Sections 10-56 through 10-58.
(Source: P.A. 92-743, eff. 7-25-02.)
(35 ILCS 143/10-56)
Sec. 10-56. Seizure and forfeiture. After seizing any
tobacco products or vending devices, as provided in Section
10-55, the Department must hold a hearing and determine
whether (i) the distributor or retailer was properly licensed
to sell the tobacco products at the time of their seizure by
the Department; (ii) the possession of the tobacco products
was in violation of this Act; or (iii) the tax imposed by this
Act had been paid on the tobacco products. The Department is
not required to hold such a hearing if a waiver and consent to
forfeiture has been executed by the owner of the property, if
the owner is known, and by the person in whose possession the
property so taken was found, if that person is known and if
that person is not the owner of the property. The Department
shall give not less than 20 days' notice of the time and place
of the hearing to the owner of the property, if the owner is
known, and also to the person in whose possession the property
was found, if that person is known and if the person in
possession is not the owner of the property. If neither the
owner nor the person in possession of the property is known,
the Department must cause publication of the time and place of

SB3019 Enrolled - 705 - LRB104 20255 HLH 33706 b
the hearing to be made at least once in each week for 3 weeks
successively in a newspaper of general circulation in the
county where the hearing is to be held.
If, as the result of the hearing, the Department makes any
of the findings listed in (i) through (iii) above determines
that the distributor or retailer was not properly licensed at
the time the tobacco products were seized, or upon receipt of a
properly executed waiver and consent to forfeiture as provided
in this Section, the Department must enter an order declaring
the tobacco products or vending devices confiscated and
forfeited to the State, to be held by the Department for
disposal by it as provided in Section 10-58. The Department
must give notice of the order to the owner of the property, if
the owner is known, and also to the person in whose possession
the property was found, if that person is known and if the
person in possession is not the owner of the property. If
neither the owner nor the person in possession of the property
is known, the Department must cause publication of the order
to be made at least once in each week for 3 weeks successively
in a newspaper of general circulation in the county where the
hearing was held.
(Source: P.A. 103-1001, eff. 8-9-24.)
(35 ILCS 143/10-58)
Sec. 10-58. Sale of forfeited tobacco products or vending
devices.

SB3019 Enrolled - 706 - LRB104 20255 HLH 33706 b
(a) When any tobacco products or any vending devices are
declared forfeited to the State by the Department, as provided
in Section 10-55, and when all proceedings for the judicial
review of the Department's decision have terminated, the
Department shall, to the extent that its decision is sustained
on review, sell the property for the best price obtainable and
shall forthwith pay over the proceeds of the sale to the State
Treasurer. If the value of the property to be sold at any one
time is $500 or more, however, the property shall be sold only
to the highest and best bidder on terms and conditions, and on
open competitive bidding after public advertisement, in a
manner and for terms as the Department, by rule, may
prescribe.
(b) If no complaint for review, as provided in Section 12
of the Retailers' Occupation Tax Act, has been filed within
the time required by law Law, and if no stay order has been
entered under that law Law, the Department shall proceed to
destroy, maintain and use in an undercover capacity, or sell
the property for the best price obtainable and shall forthwith
pay over the proceeds of the sale to the State Treasurer. If
the value of the property to be sold at any one time is $500 or
more, however, the property shall be sold only to the highest
and best bidder on terms and conditions, and on open
competitive bidding after public advertisement, in a manner
and for terms as the Department, by rule, may prescribe.
(c) Upon making a sale of tobacco products as provided in

SB3019 Enrolled - 707 - LRB104 20255 HLH 33706 b
this Section, the Department shall affix a distinctive stamp
to each of the tobacco products so sold indicating that they
are sold under this Section.
(d) The cost of destruction shall be assessed against the
owner or the person in possession of the forfeited property.
Such cost shall be assessed regardless of whether the
forfeiture is determined by hearing or waiver.
(e) Notwithstanding the foregoing, any tobacco products
seized under this Act may, at the discretion of the Director of
Revenue, be distributed to any eleemosynary institution within
the State of Illinois.
(f) Any person aggrieved by any decision of the Department
under this Section may, within 30 days after notice of the
decision, protest and request a hearing. Upon receiving a
written request for a hearing, the Department shall give
notice to the person requesting the hearing of the time and
place fixed for the hearing and shall hold a hearing in
conformity with the provisions of this Act and then issue its
final administrative decision in the matter to that person. In
the absence of a protest and request for a hearing within 30
days, the Department's decision shall become final without any
further determination being made or notice given. If a hearing
has already been set pursuant to Section 10-25 or Section
10-56 of this Act, all issues related to the cost of
destruction shall be heard simultaneously.
(Source: P.A. 97-1129, eff. 8-28-12.)

SB3019 Enrolled - 708 - LRB104 20255 HLH 33706 b
ARTICLE 85
Section 85-5. The Illinois Gambling Act is amended by
changing Section 7 as follows:
(230 ILCS 10/7) (from Ch. 120, par. 2407)
Sec. 7. Owners licenses.
(a) The Board shall issue owners licenses to persons or
entities that apply for such licenses upon payment to the
Board of the non-refundable license fee as provided in
subsection (e) or (e-5) and upon a determination by the Board
that the applicant is eligible for an owners license pursuant
to this Act and the rules of the Board. From December 15, 2008
(the effective date of Public Act 95-1008) until (i) 3 years
after December 15, 2008 (the effective date of Public Act
95-1008), (ii) the date any organization licensee begins to
operate a slot machine or video game of chance under the
Illinois Horse Racing Act of 1975 or this Act, (iii) the date
that payments begin under subsection (c-5) of Section 13 of
this Act, (iv) the wagering tax imposed under Section 13 of
this Act is increased by law to reflect a tax rate that is at
least as stringent or more stringent than the tax rate
contained in subsection (a-3) of Section 13, or (v) when an
owners licensee holding a license issued pursuant to Section
7.1 of this Act begins conducting gaming, whichever occurs

SB3019 Enrolled - 709 - LRB104 20255 HLH 33706 b
first, as a condition of licensure and as an alternative
source of payment for those funds payable under subsection
(c-5) of Section 13 of this Act, any owners licensee that holds
or receives its owners license on or after May 26, 2006 (the
effective date of Public Act 94-804), other than an owners
licensee operating a riverboat with adjusted gross receipts in
calendar year 2004 of less than $200,000,000, must pay into
the Horse Racing Equity Trust Fund, in addition to any other
payments required under this Act, an amount equal to 3% of the
adjusted gross receipts received by the owners licensee. The
payments required under this Section shall be made by the
owners licensee to the State Treasurer no later than 3:00
o'clock p.m. of the day after the day when the adjusted gross
receipts were received by the owners licensee. A person or
entity is ineligible to receive an owners license if:
(1) the person has been convicted of a felony under
the laws of this State, any other state, or the United
States;
(2) the person has been convicted of any violation of
Article 28 of the Criminal Code of 1961 or the Criminal
Code of 2012, or substantially similar laws of any other
jurisdiction;
(3) the person has submitted an application for a
license under this Act which contains false information;
(4) the person is a member of the Board;
(5) a person defined in (1), (2), (3), or (4) is an

SB3019 Enrolled - 710 - LRB104 20255 HLH 33706 b
officer, director, or managerial employee of the entity;
(6) the entity employs a person defined in (1), (2),
(3), or (4) who participates in the management or
operation of gambling operations authorized under this
Act;
(7) (blank); or
(8) a license of the person or entity issued under
this Act, or a license to own or operate gambling
facilities in any other jurisdiction, has been revoked.
The Board is expressly prohibited from making changes to
the requirement that licensees make payment into the Horse
Racing Equity Trust Fund without the express authority of the
Illinois General Assembly and making any other rule to
implement or interpret Public Act 95-1008. For the purposes of
this paragraph, "rules" is given the meaning given to that
term in Section 1-70 of the Illinois Administrative Procedure
Act.
(b) In determining whether to grant an owners license to
an applicant, the Board shall consider:
(1) the character, reputation, experience, and
financial integrity of the applicants and of any other or
separate person that either:
(A) controls, directly or indirectly, such
applicant; or
(B) is controlled, directly or indirectly, by such
applicant or by a person which controls, directly or

SB3019 Enrolled - 711 - LRB104 20255 HLH 33706 b
indirectly, such applicant;
(2) the facilities or proposed facilities for the
conduct of gambling;
(3) the highest prospective total revenue to be
derived by the State from the conduct of gambling;
(4) the extent to which the ownership of the applicant
reflects the diversity of the State by including minority
persons, women, and persons with a disability and the good
faith affirmative action plan of each applicant to
recruit, train, and upgrade minority persons, women, and
persons with a disability in all employment
classifications; the Board shall further consider granting
an owners license and giving preference to an applicant
under this Section to applicants in which minority persons
and women hold ownership interest of at least 16% and 4%,
respectively;
(4.5) the extent to which the ownership of the
applicant includes veterans of service in the armed forces
of the United States, and the good faith affirmative
action plan of each applicant to recruit, train, and
upgrade veterans of service in the armed forces of the
United States in all employment classifications;
(5) the financial ability of the applicant to purchase
and maintain adequate liability and casualty insurance;
(6) whether the applicant has adequate capitalization
to provide and maintain, for the duration of a license, a

SB3019 Enrolled - 712 - LRB104 20255 HLH 33706 b
riverboat or casino;
(7) the extent to which the applicant exceeds or meets
other standards for the issuance of an owners license
which the Board may adopt by rule;
(8) the amount of the applicant's license bid;
(9) the extent to which the applicant or the proposed
host municipality plans to enter into revenue sharing
agreements with communities other than the host
municipality;
(10) the extent to which the ownership of an applicant
includes the most qualified number of minority persons,
women, and persons with a disability; and
(11) whether the applicant has entered into a fully
executed construction project labor agreement with the
applicable local building trades council.
(c) Each owners license shall specify the place where the
casino shall operate or the riverboat shall operate and dock.
(d) Each applicant shall submit with his or her
application, on forms provided by the Board, 2 sets of his or
her fingerprints.
(e) In addition to any licenses authorized under
subsection (e-5) of this Section, the Board may issue up to 10
licenses authorizing the holders of such licenses to own
riverboats. In the application for an owners license, the
applicant shall state the dock at which the riverboat is based
and the water on which the riverboat will be located. The Board

SB3019 Enrolled - 713 - LRB104 20255 HLH 33706 b
shall issue 5 licenses to become effective not earlier than
January 1, 1991. Three of such licenses shall authorize
riverboat gambling on the Mississippi River, or, with approval
by the municipality in which the riverboat was docked on
August 7, 2003 and with Board approval, be authorized to
relocate to a new location, in a municipality that (1) borders
on the Mississippi River or is within 5 miles of the city
limits of a municipality that borders on the Mississippi River
and (2) on August 7, 2003, had a riverboat conducting
riverboat gambling operations pursuant to a license issued
under this Act; one of which shall authorize riverboat
gambling from a home dock in the city of East St. Louis; and
one of which shall authorize riverboat gambling from a home
dock in the City of Alton. One other license shall authorize
riverboat gambling on the Illinois River in the City of East
Peoria or, with Board approval, shall authorize land-based
gambling operations anywhere within the corporate limits of
the City of Peoria. The Board shall issue one additional
license to become effective not earlier than March 1, 1992,
which shall authorize riverboat gambling on the Des Plaines
River in Will County. The Board may issue 4 additional
licenses to become effective not earlier than March 1, 1992.
In determining the water upon which riverboats will operate,
the Board shall consider the economic benefit which riverboat
gambling confers on the State, and shall seek to ensure assure
that all regions of the State share in the economic benefits of

SB3019 Enrolled - 714 - LRB104 20255 HLH 33706 b
riverboat gambling.
In granting all licenses, the Board may give favorable
consideration to economically depressed areas of the State, to
applicants presenting plans which provide for significant
economic development over a large geographic area, and to
applicants who currently operate non-gambling riverboats in
Illinois. The Board shall review all applications for owners
licenses, and shall inform each applicant of the Board's
decision. The Board may grant an owners license to an
applicant that has not submitted the highest license bid, but
if it does not select the highest bidder, the Board shall issue
a written decision explaining why another applicant was
selected and identifying the factors set forth in this Section
that favored the winning bidder. The fee for issuance or
renewal of a license pursuant to this subsection (e) shall be
$250,000.
(e-5) In addition to licenses authorized under subsection
(e) of this Section:
(1) the Board may issue one owners license authorizing
the conduct of casino gambling in the City of Chicago;
(2) the Board may issue one owners license authorizing
the conduct of riverboat gambling in the City of Danville;
(3) the Board may issue one owners license authorizing
the conduct of riverboat gambling in the City of Waukegan;
(4) the Board may issue one owners license authorizing
the conduct of riverboat gambling in the City of Rockford;

SB3019 Enrolled - 715 - LRB104 20255 HLH 33706 b
(5) the Board may issue one owners license authorizing
the conduct of riverboat gambling in a municipality that
is wholly or partially located in one of the following
townships of Cook County: Bloom, Bremen, Calumet, Rich,
Thornton, or Worth Township; and
(6) the Board may issue one owners license authorizing
the conduct of riverboat gambling in the unincorporated
area of Williamson County adjacent to the Big Muddy River.
Except for the license authorized under paragraph (1),
each application for a license pursuant to this subsection
(e-5) shall be submitted to the Board no later than 120 days
after June 28, 2019 (the effective date of Public Act 101-31).
All applications for a license under this subsection (e-5)
shall include the nonrefundable application fee and the
nonrefundable background investigation fee as provided in
subsection (d) of Section 6 of this Act. In the event that an
applicant submits an application for a license pursuant to
this subsection (e-5) prior to June 28, 2019 (the effective
date of Public Act 101-31), such applicant shall submit the
nonrefundable application fee and background investigation fee
as provided in subsection (d) of Section 6 of this Act no later
than 6 months after June 28, 2019 (the effective date of Public
Act 101-31).
The Board shall consider issuing a license pursuant to
paragraphs (1) through (6) of this subsection only after the
corporate authority of the municipality or the county board of

SB3019 Enrolled - 716 - LRB104 20255 HLH 33706 b
the county in which the riverboat or casino shall be located
has certified to the Board the following:
(i) that the applicant has negotiated with the
corporate authority or county board in good faith;
(ii) that the applicant and the corporate authority or
county board have mutually agreed on the permanent
location of the riverboat or casino;
(iii) that the applicant and the corporate authority
or county board have mutually agreed on the temporary
location of the riverboat or casino;
(iv) that the applicant and the corporate authority or
the county board have mutually agreed on the percentage of
revenues that will be shared with the municipality or
county, if any;
(v) that the applicant and the corporate authority or
county board have mutually agreed on any zoning,
licensing, public health, or other issues that are within
the jurisdiction of the municipality or county;
(vi) that the corporate authority or county board has
passed a resolution or ordinance in support of the
riverboat or casino in the municipality or county;
(vii) that the applicant for a license under paragraph
(1) has made a public presentation concerning its casino
proposal; and
(viii) that the applicant for a license under
paragraph (1) has prepared a summary of its casino

SB3019 Enrolled - 717 - LRB104 20255 HLH 33706 b
proposal and such summary has been posted on a public
website of the municipality or the county.
At least 7 days before the corporate authority of a
municipality or county board of the county submits a
certification to the Board concerning items (i) through (viii)
of this subsection, it shall hold a public hearing to discuss
items (i) through (viii), as well as any other details
concerning the proposed riverboat or casino in the
municipality or county. The corporate authority or county
board must subsequently memorialize the details concerning the
proposed riverboat or casino in a resolution that must be
adopted by a majority of the corporate authority or county
board before any certification is sent to the Board. The Board
shall not alter, amend, change, or otherwise interfere with
any agreement between the applicant and the corporate
authority of the municipality or county board of the county
regarding the location of any temporary or permanent facility.
In addition, within 10 days after June 28, 2019 (the
effective date of Public Act 101-31), the Board, with consent
and at the expense of the City of Chicago, shall select and
retain the services of a nationally recognized casino gaming
feasibility consultant. Within 45 days after June 28, 2019
(the effective date of Public Act 101-31), the consultant
shall prepare and deliver to the Board a study concerning the
feasibility of, and the ability to finance, a casino in the
City of Chicago. The feasibility study shall be delivered to

SB3019 Enrolled - 718 - LRB104 20255 HLH 33706 b
the Mayor of the City of Chicago, the Governor, the President
of the Senate, and the Speaker of the House of
Representatives. Ninety days after receipt of the feasibility
study, the Board shall make a determination, based on the
results of the feasibility study, whether to recommend to the
General Assembly that the terms of the license under paragraph
(1) of this subsection (e-5) should be modified. The Board may
begin accepting applications for the owners license under
paragraph (1) of this subsection (e-5) upon the determination
to issue such an owners license.
In addition, prior to the Board issuing the owners license
authorized under paragraph (4) of this subsection (e-5), an
impact study shall be completed to determine what location in
the city will provide the greater impact to the region,
including the creation of jobs and the generation of tax
revenue.
(e-10) The licenses authorized under subsection (e-5) of
this Section shall be issued within 12 months after the date
the license application is submitted. If the Board does not
issue the licenses within that time period, then the Board
shall give a written explanation to the applicant as to why it
has not reached a determination and when it reasonably expects
to make a determination. The fee for the issuance or renewal of
a license issued pursuant to this subsection (e-10) shall be
$250,000. Additionally, a licensee located outside of Cook
County shall pay a minimum initial fee of $17,500 per gaming

SB3019 Enrolled - 719 - LRB104 20255 HLH 33706 b
position, and a licensee located in Cook County shall pay a
minimum initial fee of $30,000 per gaming position. The
initial fees payable under this subsection (e-10) shall be
deposited into the Rebuild Illinois Projects Fund. If at any
point after June 1, 2020 there are no pending applications for
a license under subsection (e-5) and not all licenses
authorized under subsection (e-5) have been issued, then the
Board shall reopen the license application process for those
licenses authorized under subsection (e-5) that have not been
issued. The Board shall follow the licensing process provided
in subsection (e-5) with all time frames tied to the last date
of a final order issued by the Board under subsection (e-5)
rather than the effective date of the amendatory Act.
(e-15) Each licensee of a license authorized under
subsection (e-5) of this Section shall make a reconciliation
payment 3 years after the date the licensee begins operating
in an amount equal to 75% of the adjusted gross receipts for
the most lucrative 12-month period of operations, minus an
amount equal to the initial payment per gaming position paid
by the specific licensee. Each licensee shall pay a
$15,000,000 reconciliation fee upon issuance of an owners
license. If this calculation results in a negative amount,
then the licensee is not entitled to any reimbursement of fees
previously paid. This reconciliation payment may be made in
installments over a period of no more than 6 years.
All payments by licensees under this subsection (e-15)

SB3019 Enrolled - 720 - LRB104 20255 HLH 33706 b
shall be deposited into the Rebuild Illinois Projects Fund.
(e-20) In addition to any other revocation powers granted
to the Board under this Act, the Board may revoke the owners
license of a licensee which fails to begin conducting gambling
within 15 months of receipt of the Board's approval of the
application if the Board determines that license revocation is
in the best interests of the State.
(f) The first 10 owners licenses issued under this Act
shall permit the holder to own up to 2 riverboats and equipment
thereon for a period of 3 years after the effective date of the
license. Holders of the first 10 owners licenses must pay the
annual license fee for each of the 3 years during which they
are authorized to own riverboats.
(g) Upon the termination, expiration, or revocation of
each of the first 10 licenses, which shall be issued for a
3-year period, all licenses are renewable annually upon
payment of the fee and a determination by the Board that the
licensee continues to meet all of the requirements of this Act
and the Board's rules. However, for licenses renewed on or
after June 10, 2021 (the effective date of Public Act 102-13)
this amendatory Act of the 102nd General Assembly, renewal
shall be for a period of 4 years.
(h) An owners license, except for an owners license issued
under subsection (e-5) of this Section, shall entitle the
licensee to own up to 2 riverboats.
An owners licensee of a casino or riverboat that is

SB3019 Enrolled - 721 - LRB104 20255 HLH 33706 b
located in the City of Chicago pursuant to paragraph (1) of
subsection (e-5) of this Section shall limit the number of
gaming positions to 4,000 for such owner. An owners licensee
authorized under subsection (e) or paragraph (2), (3), (4), or
(5) of subsection (e-5) of this Section shall limit the number
of gaming positions to 2,000 for any such owners license. An
owners licensee authorized under paragraph (6) of subsection
(e-5) of this Section shall limit the number of gaming
positions to 1,200 for such owner. The initial fee for each
gaming position obtained on or after June 28, 2019 (the
effective date of Public Act 101-31) shall be a minimum of
$17,500 for licensees not located in Cook County and a minimum
of $30,000 for licensees located in Cook County, in addition
to the reconciliation payment, as set forth in subsection
(e-15) of this Section. The fees under this subsection (h)
shall be deposited into the Rebuild Illinois Projects Fund.
The fees under this subsection (h) that are paid by an owners
licensee authorized under subsection (e) shall be paid by July
1, 2021.
Each owners licensee under subsection (e) of this Section
shall reserve its gaming positions within 30 days after June
28, 2019 (the effective date of Public Act 101-31). The Board
may grant an extension to this 30-day period, provided that
the owners licensee submits a written request and explanation
as to why it is unable to reserve its positions within the
30-day period.

SB3019 Enrolled - 722 - LRB104 20255 HLH 33706 b
Each owners licensee under subsection (e-5) of this
Section shall reserve its gaming positions within 30 days
after issuance of its owners license. The Board may grant an
extension to this 30-day period, provided that the owners
licensee submits a written request and explanation as to why
it is unable to reserve its positions within the 30-day
period.
A licensee may operate both of its riverboats
concurrently, provided that the total number of gaming
positions on both riverboats does not exceed the limit
established pursuant to this subsection. Riverboats licensed
to operate on the Mississippi River and the Illinois River
south of Marshall County shall have an authorized capacity of
at least 500 persons. Any other riverboat licensed under this
Act shall have an authorized capacity of at least 400 persons.
(h-5) An owners licensee who conducted gambling operations
prior to January 1, 2012 and obtains positions pursuant to
Public Act 101-31 shall make a reconciliation payment 3 years
after any additional gaming positions begin operating in an
amount equal to 75% of the owners licensee's average gross
receipts for the most lucrative 12-month period of operations
minus an amount equal to the initial fee that the owners
licensee paid per additional gaming position. For purposes of
this subsection (h-5), "average gross receipts" means (i) the
increase in adjusted gross receipts for the most lucrative
12-month period of operations over the adjusted gross receipts

SB3019 Enrolled - 723 - LRB104 20255 HLH 33706 b
for 2019, multiplied by (ii) the percentage derived by
dividing the number of additional gaming positions that an
owners licensee had obtained by the total number of gaming
positions operated by the owners licensee. If this calculation
results in a negative amount, then the owners licensee is not
entitled to any reimbursement of fees previously paid. This
reconciliation payment may be made in installments over a
period of no more than 6 years. These reconciliation payments
shall be deposited into the Rebuild Illinois Projects Fund.
(i) A licensed owner is authorized to apply to the Board
for and, if approved therefor, to receive all licenses from
the Board necessary for the operation of a riverboat or
casino, including a liquor license, a license to prepare and
serve food for human consumption, and other necessary
licenses. All use, occupation, and excise taxes which apply to
the sale of food and beverages in this State and all taxes
imposed on the sale or use of tangible personal property apply
to such sales aboard the riverboat or in the casino.
(j) The Board may issue or re-issue a license authorizing
a riverboat to dock in a municipality or approve a relocation
under Section 11.2 only if, prior to the issuance or
re-issuance of the license or approval, the governing body of
the municipality in which the riverboat will dock has by a
majority vote approved the docking of riverboats in the
municipality. The Board may issue or re-issue a license
authorizing a riverboat to dock in areas of a county outside

SB3019 Enrolled - 724 - LRB104 20255 HLH 33706 b
any municipality or approve a relocation under Section 11.2
only if, prior to the issuance or re-issuance of the license or
approval, the governing body of the county has by a majority
vote approved of the docking of riverboats within such areas.
(k) An owners licensee may conduct land-based gambling
operations upon approval by the Board and payment of a fee of
$250,000, which shall be deposited into the State Gaming Fund.
(l) An owners licensee may conduct gaming at a temporary
facility pending the construction of a permanent facility or
the remodeling or relocation of an existing facility to
accommodate gaming participants for up to 24 months after the
temporary facility begins to conduct gaming. Upon request by
an owners licensee and upon a showing of good cause by the
owners licensee: (i) for a licensee authorized under paragraph
(3) of subsection (e-5), upon payment of an administrative fee
of $10,000, the Board may shall extend the period during which
the licensee may conduct gaming at a temporary facility by up
to 48 30 months; and (ii) for a licensee authorized under
paragraph (1) of subsection (e-5), upon payment of an
administrative fee of $10,000, the Board may extend the period
during which the licensee may conduct gaming at a temporary
facility by up to 18 months, and the Board may authorize no
more than 2 additional 3-month extensions; and (iii) for all
other licensees, the Board shall extend the period during
which the licensee may conduct gaming at a temporary facility
by up to 12 months. The Board shall make rules concerning the

SB3019 Enrolled - 725 - LRB104 20255 HLH 33706 b
conduct of gaming from temporary facilities.
(Source: P.A. 102-13, eff. 6-10-21; 102-558, eff. 8-20-21;
103-574, eff. 12-8-23; revised 6-26-25.)
ARTICLE 95
Section 95-5. The Illinois Vehicle Code is amended by
changing Sections 15-111 and 15-312 as follows:
(625 ILCS 5/15-111) (from Ch. 95 1/2, par. 15-111)
(Text of Section before amendment by P.A. 104-436)
Sec. 15-111. Wheel and axle loads and gross weights.
(a) No vehicle or combination of vehicles with pneumatic
tires may be operated, unladen or with load, when the total
weight on the road surface exceeds the following: 20,000
pounds on a single axle; 34,000 pounds on a tandem axle with no
axle within the tandem exceeding 20,000 pounds; 80,000 pounds
gross weight for vehicle combinations of 5 or more axles; or a
total weight on a group of 2 or more consecutive axles in
excess of that weight produced by the application of the
following formula: W = 500 times the sum of (LN divided by N-1)
+ 12N + 36, where "W" equals overall total weight on any group
of 2 or more consecutive axles to the nearest 500 pounds, "L"
equals the distance measured to the nearest foot between
extremes of any group of 2 or more consecutive axles, and "N"
equals the number of axles in the group under consideration.

SB3019 Enrolled - 726 - LRB104 20255 HLH 33706 b
The above formula when expressed in tabular form results
in allowable loads as follows:
Distance measured
to the nearest
foot between the
extremes of any Maximum weight in pounds
group of 2 or of any group of
more consecutive 2 or more consecutive axles
axles
feet 2 axles 3 axles 4 axles 5 axles 6 axles
4 34,000
5 34,000
6 34,000
7 34,000
8 34,000* 34,000
Between 8
and 9 38,000 42,000
9 39,000 42,500
10 40,000 43,500
11 44,000
12 45,000 50,000
13 45,500 50,500
14 46,500 51,500
15 47,000 52,000
16 48,000 52,500 58,000

SB3019 Enrolled - 727 - LRB104 20255 HLH 33706 b
17 48,500 53,500 58,500
18 49,500 54,000 59,000
19 50,000 54,500 60,000
20 51,000 55,500 60,500 66,000
21 51,500 56,000 61,000 66,500
22 52,500 56,500 61,500 67,000
23 53,000 57,500 62,500 68,000
24 54,000 58,000 63,000 68,500
25 54,500 58,500 63,500 69,000
26 55,500 59,500 64,000 69,500
27 56,000 60,000 65,000 70,000
28 57,000 60,500 65,500 71,000
29 57,500 61,500 66,000 71,500
30 58,500 62,000 66,500 72,000
31 59,000 62,500 67,500 72,500
32 60,000 63,500 68,000 73,000
33 64,000 68,500 74,000
34 64,500 69,000 74,500
35 65,500 70,000 75,000
36 66,000** 70,500 75,500
37 66,500** 71,000 76,000
38 67,500** 72,000 77,000
39 68,000 72,500 77,500
40 68,500 73,000 78,000
41 69,500 73,500 78,500
42 70,000 74,000 79,000

SB3019 Enrolled - 728 - LRB104 20255 HLH 33706 b
43 70,500 75,000 80,000
44 71,500 75,500
45 72,000 76,000
46 72,500 76,500
47 73,500 77,500
48 74,000 78,000
49 74,500 78,500
50 75,500 79,000
51 76,000 80,000
52 76,500
53 77,500
54 78,000
55 78,500
56 79,500
57 80,000
*If the distance between 2 axles is 96 inches or less, the 2
axles are tandem axles and the maximum total weight may not
exceed 34,000 pounds, notwithstanding the higher limit
resulting from the application of the formula.
**Two consecutive sets of tandem axles may carry 34,000 pounds
each if the overall distance between the first and last axles
of these tandems is 36 feet or more.
Vehicles not in a combination having more than 4 axles may
not exceed the weight in the table in this subsection (a) for 4
axles measured between the extreme axles of the vehicle.
Vehicles in a combination having more than 6 axles may not

SB3019 Enrolled - 729 - LRB104 20255 HLH 33706 b
exceed the weight in the table in this subsection (a) for 6
axles measured between the extreme axles of the combination.
Local authorities, with respect to streets and highways
under their jurisdiction, without additional fees, may also by
ordinance or resolution allow the weight limitations of this
subsection, provided the maximum gross weight on any one axle
shall not exceed 20,000 pounds and the maximum total weight on
any tandem axle shall not exceed 34,000 pounds, on designated
highways when appropriate regulatory signs giving notice are
erected upon the street or highway or portion of any street or
highway affected by the ordinance or resolution.
The following are exceptions to the above formula:
(1) Vehicles for which a different limit is
established and posted in accordance with Section 15-316
of this Code.
(2) Vehicles for which the Department of
Transportation and local authorities issue overweight
permits under authority of Section 15-301 of this Code.
These vehicles are not subject to the bridge formula.
(3) Cities having a population of more than 50,000 may
permit by ordinance axle loads on 2-axle motor vehicles 33
1/2% above those provided for herein, but the increase
shall not become effective until the city has officially
notified the Department of the passage of the ordinance
and shall not apply to those vehicles when outside of the
limits of the city, nor shall the gross weight of any

SB3019 Enrolled - 730 - LRB104 20255 HLH 33706 b
2-axle motor vehicle operating over any street of the city
exceed 40,000 pounds.
(4) Weight limitations shall not apply to vehicles
(including loads) operated by a public utility when
transporting equipment required for emergency repair of
public utility facilities or properties or water wells.
(4.5) A 3-axle or 4-axle vehicle (including when
laden) operated or hired by a municipality within Cook,
Lake, McHenry, Kane, DuPage, or Will county being operated
for the purpose of performing emergency sewer repair that
would be subject to a weight limitation less than 66,000
pounds under the formula in this subsection (a) shall have
a weight limitation of 66,000 pounds or the vehicle's
gross vehicle weight rating, whichever is less. This
paragraph (4.5) does not apply to vehicles being operated
on the National System of Interstate and Defense Highways,
or to vehicles being operated on bridges or other elevated
structures constituting a part of a highway.
(5) Two consecutive sets of tandem axles may carry a
total weight of 34,000 pounds each if the overall distance
between the first and last axles of the consecutive sets
of tandem axles is 36 feet or more, notwithstanding the
lower limit resulting from the application of the above
formula.
(6) A truck, not in combination and used exclusively
for the collection of rendering materials, may, when

SB3019 Enrolled - 731 - LRB104 20255 HLH 33706 b
laden, transmit upon the road surface, except when on part
of the National System of Interstate and Defense Highways,
the following maximum weights: 22,000 pounds on a single
axle; 40,000 pounds on a tandem axle.
(7) A truck not in combination, equipped with a self
compactor or an industrial roll-off hoist and roll-off
container, used exclusively for garbage, refuse, or
recycling operations, may, when laden, transmit upon the
road surface, except when on part of the National System
of Interstate and Defense Highways, the following maximum
weights: 22,000 pounds on a single axle; 40,000 pounds on
a tandem axle; 40,000 pounds gross weight on a 2-axle
vehicle; 54,000 pounds gross weight on a 3-axle vehicle.
This vehicle is not subject to the bridge formula.
(7.5) A 3-axle rear discharge truck mixer registered
as a Special Hauling Vehicle, used exclusively for the
mixing and transportation of concrete in the plastic
state, may, when laden, transmit upon the road surface,
except when on part of the National System of Interstate
and Defense Highways, the following maximum weights:
22,000 pounds on single axle; 40,000 pounds on a tandem
axle; 54,000 pounds gross weight on a 3-axle vehicle. This
vehicle is not subject to the bridge formula.
(8) Except as provided in paragraph (7.5) of this
subsection (a), tandem axles on a 3-axle truck registered
as a Special Hauling Vehicle, manufactured prior to or in

SB3019 Enrolled - 732 - LRB104 20255 HLH 33706 b
the model year of 2024 and first registered in Illinois
prior to January 1, 2025, with a distance greater than 72
inches but not more than 96 inches between any series of 2
axles, is allowed a combined weight on the series not to
exceed 36,000 pounds and neither axle of the series may
exceed 20,000 pounds. Any vehicle of this type
manufactured after the model year of 2024 or first
registered in Illinois after December 31, 2024 may not
exceed a combined weight of 34,000 pounds through the
series of 2 axles and neither axle of the series may exceed
20,000 pounds.
A 3-axle combination sewer cleaning jetting vacuum
truck registered as a Special Hauling Vehicle, used
exclusively for the transportation of non-hazardous solid
waste, manufactured before or in the model year of 2014,
first registered in Illinois before January 1, 2015, may,
when laden, transmit upon the road surface, except when on
part of the National System of Interstate and Defense
Highways, the following maximum weights: 22,000 pounds on
a single axle; 40,000 pounds on a tandem axle; 54,000
pounds gross weight on a 3-axle vehicle. This vehicle is
not subject to the bridge formula.
(9) A 4-axle truck mixer registered as a Special
Hauling Vehicle, used exclusively for the mixing and
transportation of concrete in the plastic state, and not
operated on a highway that is part of the National System

SB3019 Enrolled - 733 - LRB104 20255 HLH 33706 b
of Interstate Highways, is allowed the following maximum
weights: 20,000 pounds on any single axle; 36,000 pounds
on a series of axles greater than 72 inches but not more
than 96 inches; and 34,000 pounds on any series of 2 axles
greater than 40 inches but not more than 72 inches. The
gross weight of this vehicle may not exceed the weights
allowed by the bridge formula for 4 axles. The bridge
formula does not apply to any series of 3 axles while the
vehicle is transporting concrete in the plastic state, but
no axle or tandem axle of the series may exceed the maximum
weight permitted under this paragraph (9) of subsection
(a).
(10) Combinations of vehicles, registered as Special
Hauling Vehicles that include a semitrailer manufactured
prior to or in the model year of 2024, and registered in
Illinois prior to January 1, 2025, having 5 axles with a
distance of 42 feet or less between extreme axles, may not
exceed the following maximum weights: 20,000 pounds on a
single axle; 34,000 pounds on a tandem axle; and 72,000
pounds gross weight. This combination of vehicles is not
subject to the bridge formula. For all those combinations
of vehicles that include a semitrailer manufactured after
the effective date of P.A. 92-0417, the overall distance
between the first and last axles of the 2 sets of tandems
must be 18 feet 6 inches or more. Any combination of
vehicles that has had its cargo container replaced in its

SB3019 Enrolled - 734 - LRB104 20255 HLH 33706 b
entirety after December 31, 2024 may not exceed the
weights allowed by the bridge formula.
(11) The maximum weight allowed on a vehicle with
crawler type tracks is 40,000 pounds.
(12) A combination of vehicles, including a tow truck
and a disabled vehicle or disabled combination of
vehicles, that exceeds the weight restriction imposed by
this Code, may be operated on a public highway in this
State provided that neither the disabled vehicle nor any
vehicle being towed nor the tow truck itself shall exceed
the weight limitations permitted under this Chapter.
During the towing operation, neither the tow truck nor the
vehicle combination shall exceed 24,000 pounds on a single
rear axle and 44,000 pounds on a tandem rear axle,
provided the towing vehicle:
(i) is specifically designed as a tow truck having
a gross vehicle weight rating of at least 18,000
pounds and is equipped with air brakes, provided that
air brakes are required only if the towing vehicle is
towing a vehicle, semitrailer, or tractor-trailer
combination that is equipped with air brakes;
(ii) is equipped with flashing, rotating, or
oscillating amber lights, visible for at least 500
feet in all directions;
(iii) is capable of utilizing the lighting and
braking systems of the disabled vehicle or combination

SB3019 Enrolled - 735 - LRB104 20255 HLH 33706 b
of vehicles; and
(iv) does not engage in a tow exceeding 20 miles
from the initial point of wreck or disablement. Any
additional movement of the vehicles may occur only
upon issuance of authorization for that movement under
the provisions of Sections 15-301 through 15-318 of
this Code. The towing vehicle, however, may tow any
disabled vehicle to a point where repairs are actually
to occur. This movement shall be valid only on State
routes. The tower must abide by posted bridge weight
limits.
(12.5) The vehicle weight limitations in this Section
do not apply to a covered heavy duty tow and recovery
vehicle. The covered heavy duty tow and recovery vehicle
license plate must cover the operating empty weight of the
covered heavy duty tow and recovery vehicle only.
(13) Upon and during a declaration of an emergency
propane supply disaster by the Governor under Section 7 of
the Illinois Emergency Management Agency Act:
(i) a truck not in combination, equipped with a
cargo tank, used exclusively for the transportation of
propane or liquefied petroleum gas may, when laden,
transmit upon the road surface, except when on part of
the National System of Interstate and Defense
Highways, the following maximum weights: 22,000 pounds
on a single axle; 40,000 pounds on a tandem axle;

SB3019 Enrolled - 736 - LRB104 20255 HLH 33706 b
40,000 pounds gross weight on a 2-axle vehicle; 54,000
pounds gross weight on a 3-axle vehicle; and
(ii) a truck when in combination with a trailer
equipped with a cargo tank used exclusively for the
transportation of propane or liquefied petroleum gas
may, when laden, transmit upon the road surface,
except when on part of the National System of
Interstate and Defense Highways, the following maximum
weights: 22,000 pounds on a single axle; 40,000 pounds
on a tandem axle; 90,000 pounds gross weight on a
5-axle or 6-axle vehicle.
Vehicles operating under this paragraph (13) are not
subject to the bridge formula.
(14) A vehicle or combination of vehicles that uses
natural gas or propane gas as a motor fuel may exceed the
above weight limitations by up to 2,000 pounds, the total
allowance is calculated by an amount that is equal to the
difference between the weight of the vehicle attributable
to the natural gas or propane gas tank and fueling system
carried by the vehicle, and the weight of a comparable
diesel tank and fueling system. This paragraph (14) shall
not allow a vehicle to exceed any posted weight limit on a
highway or structure.
(15) An emergency vehicle or fire apparatus that is a
vehicle designed to be used under emergency conditions to
transport personnel and equipment, and used to support the

SB3019 Enrolled - 737 - LRB104 20255 HLH 33706 b
suppression of fires and mitigation of other hazardous
situations on a Class I highway, may not exceed 86,000
pounds gross weight, or any of the following weight
allowances:
(i) 24,000 pounds on a single steering axle;
(ii) 33,500 pounds on a single drive axle;
(iii) 62,000 pounds on a tandem axle; or
(iv) 52,000 pounds on a tandem rear drive steer
axle.
(16) A bus, motor coach, or recreational vehicle may
carry a total weight of 24,000 pounds on a single axle, but
may not exceed other weight provisions of this Section.
Gross weight limits shall not apply to the combination of
the tow truck and vehicles being towed. The tow truck license
plate must cover the operating empty weight of the tow truck
only. The weight of each vehicle being towed shall be covered
by a valid license plate issued to the owner or operator of the
vehicle being towed and displayed on that vehicle. If no valid
plate issued to the owner or operator of that vehicle is
displayed on that vehicle, or the plate displayed on that
vehicle does not cover the weight of the vehicle, the weight of
the vehicle shall be covered by the third tow truck plate
issued to the owner or operator of the tow truck and
temporarily affixed to the vehicle being towed. If a roll-back
carrier is registered and being used as a tow truck, however,
the license plate or plates for the tow truck must cover the

SB3019 Enrolled - 738 - LRB104 20255 HLH 33706 b
gross vehicle weight, including any load carried on the bed of
the roll-back carrier.
The Department may by rule or regulation prescribe
additional requirements. However, nothing in this Code shall
prohibit a tow truck under instructions of a police officer
from legally clearing a disabled vehicle, that may be in
violation of weight limitations of this Chapter, from the
roadway to the berm or shoulder of the highway. If in the
opinion of the police officer that location is unsafe, the
officer is authorized to have the disabled vehicle towed to
the nearest place of safety.
For the purpose of this subsection, gross vehicle weight
rating, or GVWR, means the value specified by the manufacturer
as the loaded weight of the tow truck.
(b) As used in this Section, "recycling haul" or
"recycling operation" means the hauling of non-hazardous,
non-special, non-putrescible materials, such as paper, glass,
cans, or plastic, for subsequent use in the secondary
materials market.
(c) No vehicle or combination of vehicles equipped with
pneumatic tires shall be operated, unladen or with load, upon
the highways of this State in violation of the provisions of
any permit issued under the provisions of Sections 15-301
through 15-318 of this Chapter.
(d) No vehicle or combination of vehicles equipped with
other than pneumatic tires may be operated, unladen or with

SB3019 Enrolled - 739 - LRB104 20255 HLH 33706 b
load, upon the highways of this State when the gross weight on
the road surface through any wheel exceeds 800 pounds per inch
width of tire tread or when the gross weight on the road
surface through any axle exceeds 16,000 pounds.
(e) No person shall operate a vehicle or combination of
vehicles over a bridge or other elevated structure
constituting part of a highway with a gross weight that is
greater than the maximum weight permitted by the Department,
when the structure is sign posted as provided in this Section.
(f) The Department upon request from any local authority
shall, or upon its own initiative may, conduct an
investigation of any bridge or other elevated structure
constituting a part of a highway, and if it finds that the
structure cannot with safety to itself withstand the weight of
vehicles otherwise permissible under this Code the Department
shall determine and declare the maximum weight of vehicles
that the structures can withstand, and shall cause or permit
suitable signs stating maximum weight to be erected and
maintained before each end of the structure. No person shall
operate a vehicle or combination of vehicles over any
structure with a gross weight that is greater than the posted
maximum weight.
(g) Upon the trial of any person charged with a violation
of subsection (e) or (f) of this Section, proof of the
determination of the maximum allowable weight by the
Department and the existence of the signs, constitutes

SB3019 Enrolled - 740 - LRB104 20255 HLH 33706 b
conclusive evidence of the maximum weight that can be
maintained with safety to the bridge or structure.
(Source: P.A. 102-124, eff. 7-23-21.)
(Text of Section after amendment by P.A. 104-436)
Sec. 15-111. Wheel and axle loads and gross weights.
(a) No vehicle or combination of vehicles with pneumatic
tires may be operated, unladen or with load, when the total
weight on the road surface exceeds the following: 20,000
pounds on a single axle; 34,000 pounds on a tandem axle with no
axle within the tandem exceeding 20,000 pounds; 80,000 pounds
gross weight for vehicle combinations of 5 or more axles; or a
total weight on a group of 2 or more consecutive axles in
excess of that weight produced by the application of the
following formula: W = 500 times the sum of (LN divided by N-1)
+ 12N + 36, where "W" equals overall total weight on any group
of 2 or more consecutive axles to the nearest 500 pounds, "L"
equals the distance measured to the nearest foot between
extremes of any group of 2 or more consecutive axles, and "N"
equals the number of axles in the group under consideration.
The above formula when expressed in tabular form results
in allowable loads as follows:
Distance measured
to the nearest
foot between the

SB3019 Enrolled - 741 - LRB104 20255 HLH 33706 b
extremes of any Maximum weight in pounds
group of 2 or of any group of
more consecutive 2 or more consecutive axles
axles
feet 2 axles 3 axles 4 axles 5 axles 6 axles
4 34,000
5 34,000
6 34,000
7 34,000
8 34,000* 34,000
Between 8
and 9 38,000 42,000
9 39,000 42,500
10 40,000 43,500
11 44,000
12 45,000 50,000
13 45,500 50,500
14 46,500 51,500
15 47,000 52,000
16 48,000 52,500 58,000
17 48,500 53,500 58,500
18 49,500 54,000 59,000
19 50,000 54,500 60,000
20 51,000 55,500 60,500 66,000
21 51,500 56,000 61,000 66,500
22 52,500 56,500 61,500 67,000

SB3019 Enrolled - 742 - LRB104 20255 HLH 33706 b
23 53,000 57,500 62,500 68,000
24 54,000 58,000 63,000 68,500
25 54,500 58,500 63,500 69,000
26 55,500 59,500 64,000 69,500
27 56,000 60,000 65,000 70,000
28 57,000 60,500 65,500 71,000
29 57,500 61,500 66,000 71,500
30 58,500 62,000 66,500 72,000
31 59,000 62,500 67,500 72,500
32 60,000 63,500 68,000 73,000
33 64,000 68,500 74,000
34 64,500 69,000 74,500
35 65,500 70,000 75,000
36 66,000** 70,500 75,500
37 66,500** 71,000 76,000
38 67,500** 72,000 77,000
39 68,000 72,500 77,500
40 68,500 73,000 78,000
41 69,500 73,500 78,500
42 70,000 74,000 79,000
43 70,500 75,000 80,000
44 71,500 75,500
45 72,000 76,000
46 72,500 76,500
47 73,500 77,500
48 74,000 78,000

SB3019 Enrolled - 743 - LRB104 20255 HLH 33706 b
49 74,500 78,500
50 75,500 79,000
51 76,000 80,000
52 76,500
53 77,500
54 78,000
55 78,500
56 79,500
57 80,000
*If the distance between 2 axles is 96 inches or less, the 2
axles are tandem axles and the maximum total weight may not
exceed 34,000 pounds, notwithstanding the higher limit
resulting from the application of the formula.
**Two consecutive sets of tandem axles may carry 34,000 pounds
each if the overall distance between the first and last axles
of these tandems is 36 feet or more.
Vehicles not in a combination having more than 4 axles may
not exceed the weight in the table in this subsection (a) for 4
axles measured between the extreme axles of the vehicle.
Vehicles in a combination having more than 6 axles may not
exceed the weight in the table in this subsection (a) for 6
axles measured between the extreme axles of the combination.
Local authorities, with respect to streets and highways
under their jurisdiction, without additional fees, may also by
ordinance or resolution allow the weight limitations of this
subsection, provided the maximum gross weight on any one axle

SB3019 Enrolled - 744 - LRB104 20255 HLH 33706 b
shall not exceed 20,000 pounds and the maximum total weight on
any tandem axle shall not exceed 34,000 pounds, on designated
highways when appropriate regulatory signs giving notice are
erected upon the street or highway or portion of any street or
highway affected by the ordinance or resolution.
The following are exceptions to the above formula:
(1) Vehicles for which a different limit is
established and posted in accordance with Section 15-316
of this Code.
(2) Vehicles for which the Department of
Transportation and local authorities issue overweight
permits under authority of Section 15-301 of this Code.
These vehicles are not subject to the bridge formula.
(3) Cities having a population of more than 50,000 may
permit by ordinance axle loads on 2-axle motor vehicles 33
1/2% above those provided for herein, but the increase
shall not become effective until the city has officially
notified the Department of the passage of the ordinance
and shall not apply to those vehicles when outside of the
limits of the city, nor shall the gross weight of any
2-axle motor vehicle operating over any street of the city
exceed 40,000 pounds.
(4) Weight limitations shall not apply to vehicles
(including loads) operated by a public utility when
transporting equipment required for emergency repair of
public utility facilities or properties or water wells.

SB3019 Enrolled - 745 - LRB104 20255 HLH 33706 b
(4.5) A 3-axle or 4-axle vehicle (including when
laden) operated or hired by a municipality within Cook,
Lake, McHenry, Kane, DuPage, or Will county being operated
for the purpose of performing emergency sewer repair that
would be subject to a weight limitation less than 66,000
pounds under the formula in this subsection (a) shall have
a weight limitation of 66,000 pounds or the vehicle's
gross vehicle weight rating, whichever is less. This
paragraph (4.5) does not apply to vehicles being operated
on the National System of Interstate and Defense Highways,
or to vehicles being operated on bridges or other elevated
structures constituting a part of a highway.
(5) Two consecutive sets of tandem axles may carry a
total weight of 34,000 pounds each if the overall distance
between the first and last axles of the consecutive sets
of tandem axles is 36 feet or more, notwithstanding the
lower limit resulting from the application of the above
formula.
(6) A truck, not in combination and used exclusively
for the collection of rendering materials, may, when
laden, transmit upon the road surface, except when on part
of the National System of Interstate and Defense Highways,
the following maximum weights: 22,000 pounds on a single
axle; 40,000 pounds on a tandem axle.
(7) A truck not in combination, equipped with a self
compactor or an industrial roll-off hoist and roll-off

SB3019 Enrolled - 746 - LRB104 20255 HLH 33706 b
container, used exclusively for garbage, refuse, or
recycling operations, may, when laden, transmit upon the
road surface, except when on part of the National System
of Interstate and Defense Highways, the following maximum
weights: 22,000 pounds on a single axle; 40,000 pounds on
a tandem axle; 40,000 pounds gross weight on a 2-axle
vehicle; 54,000 pounds gross weight on a 3-axle vehicle.
This vehicle is not subject to the bridge formula.
(7.5) A 3-axle rear discharge truck mixer registered
as a Special Hauling Vehicle, used exclusively for the
mixing and transportation of concrete in the plastic
state, may, when laden, transmit upon the road surface,
except when on part of the National System of Interstate
and Defense Highways, the following maximum weights:
22,000 pounds on single axle; 40,000 pounds on a tandem
axle; 54,000 pounds gross weight on a 3-axle vehicle. This
vehicle is not subject to the bridge formula.
(8) Except as provided in paragraph (7.5) of this
subsection (a), tandem axles on a 3-axle truck registered
as a Special Hauling Vehicle, manufactured prior to or in
the model year of 2024 and first registered in Illinois
prior to January 1, 2025, with a distance greater than 72
inches but not more than 96 inches between any series of 2
axles, is allowed a combined weight on the series not to
exceed 36,000 pounds and neither axle of the series may
exceed 20,000 pounds. Any vehicle of this type

SB3019 Enrolled - 747 - LRB104 20255 HLH 33706 b
manufactured after the model year of 2024 or first
registered in Illinois after December 31, 2024 may not
exceed a combined weight of 34,000 pounds through the
series of 2 axles and neither axle of the series may exceed
20,000 pounds.
A 3-axle combination sewer cleaning jetting vacuum
truck registered as a Special Hauling Vehicle, used
exclusively for the transportation of non-hazardous solid
waste, manufactured before or in the model year of 2014,
first registered in Illinois before January 1, 2015, may,
when laden, transmit upon the road surface, except when on
part of the National System of Interstate and Defense
Highways, the following maximum weights: 22,000 pounds on
a single axle; 40,000 pounds on a tandem axle; 54,000
pounds gross weight on a 3-axle vehicle. This vehicle is
not subject to the bridge formula.
(9) A 4-axle truck mixer registered as a Special
Hauling Vehicle, used exclusively for the mixing and
transportation of concrete in the plastic state, and not
operated on a highway that is part of the National System
of Interstate Highways, is allowed the following maximum
weights: 20,000 pounds on any single axle; 36,000 pounds
on a series of axles greater than 72 inches but not more
than 96 inches; and 34,000 pounds on any series of 2 axles
greater than 40 inches but not more than 72 inches. The
gross weight of this vehicle may not exceed the weights

SB3019 Enrolled - 748 - LRB104 20255 HLH 33706 b
allowed by the bridge formula for 4 axles. The bridge
formula does not apply to any series of 3 axles while the
vehicle is transporting concrete in the plastic state, but
no axle or tandem axle of the series may exceed the maximum
weight permitted under this paragraph (9) of subsection
(a).
(10) Combinations of vehicles, registered as Special
Hauling Vehicles that include a semitrailer manufactured
prior to or in the model year of 2024, and registered in
Illinois prior to January 1, 2025, having 5 axles with a
distance of 42 feet or less between extreme axles, may not
exceed the following maximum weights: 20,000 pounds on a
single axle; 34,000 pounds on a tandem axle; and 72,000
pounds gross weight. This combination of vehicles is not
subject to the bridge formula. For all those combinations
of vehicles that include a semitrailer manufactured after
the effective date of P.A. 92-0417, the overall distance
between the first and last axles of the 2 sets of tandems
must be 18 feet 6 inches or more. Any combination of
vehicles that has had its cargo container replaced in its
entirety after December 31, 2024 may not exceed the
weights allowed by the bridge formula.
(11) The maximum weight allowed on a vehicle with
crawler type tracks is 40,000 pounds.
(12) A combination of vehicles, including a tow truck
and a disabled vehicle or disabled combination of

SB3019 Enrolled - 749 - LRB104 20255 HLH 33706 b
vehicles, that exceeds the weight restriction imposed by
this Code, may be operated on a public highway in this
State provided that neither the disabled vehicle nor any
vehicle being towed nor the tow truck itself shall exceed
the weight limitations permitted under this Chapter.
During the towing operation, neither the tow truck nor the
vehicle combination shall exceed 24,000 pounds on a single
rear axle and 44,000 pounds on a tandem rear axle,
provided the towing vehicle:
(i) is specifically designed as a tow truck having
a gross vehicle weight rating of at least 18,000
pounds and is equipped with air brakes, provided that
air brakes are required only if the towing vehicle is
towing a vehicle, semitrailer, or tractor-trailer
combination that is equipped with air brakes;
(ii) is equipped with flashing, rotating, or
oscillating amber lights, visible for at least 500
feet in all directions;
(iii) is capable of utilizing the lighting and
braking systems of the disabled vehicle or combination
of vehicles; and
(iv) does not engage in a tow exceeding 20 miles
from the initial point of wreck or disablement. Any
additional movement of the vehicles may occur only
upon issuance of authorization for that movement under
the provisions of Sections 15-301 through 15-318 of

SB3019 Enrolled - 750 - LRB104 20255 HLH 33706 b
this Code. The towing vehicle, however, may tow any
disabled vehicle to a point where repairs are actually
to occur. This movement shall be valid only on State
routes. The tower must abide by posted bridge weight
limits.
(12.5) The vehicle weight limitations in this Section
do not apply to a covered heavy duty tow and recovery
vehicle. The covered heavy duty tow and recovery vehicle
license plate must cover the operating empty weight of the
covered heavy duty tow and recovery vehicle only.
(13) Upon and during a declaration of an emergency
propane supply disaster by the Governor under Section 7 of
the Illinois Emergency Management Agency Act:
(i) a truck not in combination, equipped with a
cargo tank, used exclusively for the transportation of
propane or liquefied petroleum gas may, when laden,
transmit upon the road surface, except when on part of
the National System of Interstate and Defense
Highways, the following maximum weights: 22,000 pounds
on a single axle; 40,000 pounds on a tandem axle;
40,000 pounds gross weight on a 2-axle vehicle; 54,000
pounds gross weight on a 3-axle vehicle; and
(ii) a truck when in combination with a trailer
equipped with a cargo tank used exclusively for the
transportation of propane or liquefied petroleum gas
may, when laden, transmit upon the road surface,

SB3019 Enrolled - 751 - LRB104 20255 HLH 33706 b
except when on part of the National System of
Interstate and Defense Highways, the following maximum
weights: 22,000 pounds on a single axle; 40,000 pounds
on a tandem axle; 90,000 pounds gross weight on a
5-axle or 6-axle vehicle.
Vehicles operating under this paragraph (13) are not
subject to the bridge formula.
(14) A vehicle or combination of vehicles that uses
either natural gas or propane gas as a motor fuel or is
operated by an engine fueled wholly or partially by an
electric battery or hydrogen fuel cell electric fueling
system may exceed the above weight limitations by up to
2,000 pounds, the total allowance is calculated by an
amount that is equal to the difference between the weight
of the vehicle attributable to the natural gas or propane
or hydrogen gas tank, batteries, and fueling system
carried by the vehicle, and the weight of a comparable
diesel tank and fueling system. This paragraph (14) shall
not allow a vehicle to exceed any posted weight limit on a
highway or structure.
(15) An emergency vehicle or fire apparatus that is a
vehicle designed to be used under emergency conditions to
transport personnel and equipment, and used to support the
suppression of fires and mitigation of other hazardous
situations on a Class I highway, may not exceed 86,000
pounds gross weight, or any of the following weight

SB3019 Enrolled - 752 - LRB104 20255 HLH 33706 b
allowances:
(i) 24,000 pounds on a single steering axle;
(ii) 33,500 pounds on a single drive axle;
(iii) 62,000 pounds on a tandem axle; or
(iv) 52,000 pounds on a tandem rear drive steer
axle.
(16) A bus, motor coach, or recreational vehicle may
carry a total weight of 24,000 pounds on a single axle, but
may not exceed other weight provisions of this Section.
Gross weight limits shall not apply to the combination of
the tow truck and vehicles being towed. The tow truck license
plate must cover the operating empty weight of the tow truck
only. The weight of each vehicle being towed shall be covered
by a valid license plate issued to the owner or operator of the
vehicle being towed and displayed on that vehicle. If no valid
plate issued to the owner or operator of that vehicle is
displayed on that vehicle, or the plate displayed on that
vehicle does not cover the weight of the vehicle, the weight of
the vehicle shall be covered by the third tow truck plate
issued to the owner or operator of the tow truck and
temporarily affixed to the vehicle being towed. If a roll-back
carrier is registered and being used as a tow truck, however,
the license plate or plates for the tow truck must cover the
gross vehicle weight, including any load carried on the bed of
the roll-back carrier.
The Department may by rule or regulation prescribe

SB3019 Enrolled - 753 - LRB104 20255 HLH 33706 b
additional requirements. However, nothing in this Code shall
prohibit a tow truck under instructions of a police officer
from legally clearing a disabled vehicle, that may be in
violation of weight limitations of this Chapter, from the
roadway to the berm or shoulder of the highway. If in the
opinion of the police officer that location is unsafe, the
officer is authorized to have the disabled vehicle towed to
the nearest place of safety.
For the purpose of this subsection, gross vehicle weight
rating, or GVWR, means the value specified by the manufacturer
as the loaded weight of the tow truck.
(b) As used in this Section, "recycling haul" or
"recycling operation" means the hauling of non-hazardous,
non-special, non-putrescible materials, such as paper, glass,
cans, or plastic, for subsequent use in the secondary
materials market.
(c) No vehicle or combination of vehicles equipped with
pneumatic tires shall be operated, unladen or with load, upon
the highways of this State in violation of the provisions of
any permit issued under the provisions of Sections 15-301
through 15-318 of this Chapter.
(d) No vehicle or combination of vehicles equipped with
other than pneumatic tires may be operated, unladen or with
load, upon the highways of this State when the gross weight on
the road surface through any wheel exceeds 800 pounds per inch
width of tire tread or when the gross weight on the road

SB3019 Enrolled - 754 - LRB104 20255 HLH 33706 b
surface through any axle exceeds 16,000 pounds.
(e) No person shall operate a vehicle or combination of
vehicles over a bridge or other elevated structure
constituting part of a highway with a gross weight that is
greater than the maximum weight permitted by the Department,
when the structure is sign posted as provided in this Section.
(f) The Department upon request from any local authority
shall, or upon its own initiative may, conduct an
investigation of any bridge or other elevated structure
constituting a part of a highway, and if it finds that the
structure cannot with safety to itself withstand the weight of
vehicles otherwise permissible under this Code the Department
shall determine and declare the maximum weight of vehicles
that the structures can withstand, and shall cause or permit
suitable signs stating maximum weight to be erected and
maintained before each end of the structure. No person shall
operate a vehicle or combination of vehicles over any
structure with a gross weight that is greater than the posted
maximum weight.
(g) Upon the trial of any person charged with a violation
of subsection (e) or (f) of this Section, proof of the
determination of the maximum allowable weight by the
Department and the existence of the signs, constitutes
conclusive evidence of the maximum weight that can be
maintained with safety to the bridge or structure.
(Source: P.A. 104-436, eff. 6-1-26.)

SB3019 Enrolled - 755 - LRB104 20255 HLH 33706 b
(625 ILCS 5/15-312) (from Ch. 95 1/2, par. 15-312)
Sec. 15-312. Fees for police escort. When State Police
escorts are required by the Department of Transportation for
the safety of the motoring public, the following fees shall be
paid by the applicant:
(1) to the Department of Transportation: $40 per hour
per vehicle based upon the pre-estimated time of the
movement to be agreed upon between the Department and the
applicant, with a minimum fee of $80 per vehicle; and
(2) to the Illinois State Police: $125 $75 per hour
per State Police vehicle based upon the actual time of the
movement, with a minimum fee of $500 $300 per State Police
vehicle. The Illinois State Police shall remit the moneys
to the State Treasurer, who shall deposit the moneys into
the State Police Operations Assistance Fund.
The actual time of the movement shall be the time the
police escort is required to pick up the movement to the time
the movement is completed. Any delays or breakdowns shall be
considered part of the movement time. Any fraction of an hour
shall be rounded up to the next whole hour.
The State Police may use an online payment system to
accept fees for police escorts.
(Source: P.A. 102-505, eff. 8-20-21; 103-706, eff. 1-1-25.)
ARTICLE 100

SB3019 Enrolled - 756 - LRB104 20255 HLH 33706 b
Section 100-5. The Illinois State Auditing Act is amended
by changing Section 3-1 as follows:
(30 ILCS 5/3-1) (from Ch. 15, par. 303-1)
(Text of Section before amendment by P.A. 104-457)
Sec. 3-1. Jurisdiction of Auditor General. The Auditor
General has jurisdiction over all State agencies to make post
audits and investigations authorized by or under this Act or
the Constitution.
The Auditor General has jurisdiction over local government
agencies and private agencies only:
(a) to make such post audits authorized by or under
this Act as are necessary and incidental to a post audit of
a State agency or of a program administered by a State
agency involving public funds of the State, but this
jurisdiction does not include any authority to review
local governmental agencies in the obligation, receipt,
expenditure or use of public funds of the State that are
granted without limitation or condition imposed by law,
other than the general limitation that such funds be used
for public purposes;
(b) to make investigations authorized by or under this
Act or the Constitution; and
(c) to make audits of the records of local government
agencies to verify actual costs of state-mandated programs

SB3019 Enrolled - 757 - LRB104 20255 HLH 33706 b
when directed to do so by the Legislative Audit Commission
at the request of the State Board of Appeals under the
State Mandates Act.
In addition to the foregoing, the Auditor General may
conduct an audit of the Metropolitan Pier and Exposition
Authority, the Regional Transportation Authority, the Suburban
Bus Division, the Commuter Rail Division and the Chicago
Transit Authority and any other subsidized carrier when
authorized by the Legislative Audit Commission. Such audit may
be a financial, management or program audit, or any
combination thereof.
The audit shall determine whether they are operating in
accordance with all applicable laws and regulations. Subject
to the limitations of this Act, the Legislative Audit
Commission may by resolution specify additional determinations
to be included in the scope of the audit.
In addition to the foregoing, the Auditor General must
also conduct a financial audit of the Illinois Sports
Facilities Authority's expenditures of public funds in
connection with the reconstruction, renovation, remodeling,
extension, or improvement of all or substantially all of any
existing "facility", as that term is defined in the Illinois
Sports Facilities Authority Act.
The Auditor General may also conduct an audit, when
authorized by the Legislative Audit Commission, of any
hospital which receives 10% or more of its gross revenues from

SB3019 Enrolled - 758 - LRB104 20255 HLH 33706 b
payments from the State of Illinois, Department of Healthcare
and Family Services (formerly Department of Public Aid),
Medical Assistance Program.
The Auditor General is authorized to conduct financial and
compliance audits of the Illinois Distance Learning Foundation
and the Illinois Conservation Foundation.
As soon as practical after August 18, 1995 (the effective
date of Public Act 89-386), the Auditor General shall conduct
a compliance and management audit of the City of Chicago and
any other entity with regard to the operation of Chicago
O'Hare International Airport, Chicago Midway Airport and
Merrill C. Meigs Field. The audit shall include, but not be
limited to, an examination of revenues, expenses, and
transfers of funds; purchasing and contracting policies and
practices; staffing levels; and hiring practices and
procedures. When completed, the audit required by this
paragraph shall be distributed in accordance with Section
3-14.
The Auditor General must conduct an audit of the Health
Facilities and Services Review Board pursuant to Section 19.5
of the Illinois Health Facilities Planning Act.
The Auditor General of the State of Illinois shall
annually conduct or cause to be conducted a financial and
compliance audit of the books and records of any county water
commission organized pursuant to the Water Commission Act of
1985 and shall file a copy of the report of that audit with the

SB3019 Enrolled - 759 - LRB104 20255 HLH 33706 b
Governor and the Legislative Audit Commission. The filed audit
shall be open to the public for inspection. The cost of the
audit shall be charged to the county water commission in
accordance with Section 6z-27 of the State Finance Act. The
county water commission shall make available to the Auditor
General its books and records and any other documentation,
whether in the possession of its trustees or other parties,
necessary to conduct the audit required. These audit
requirements apply only through July 1, 2007.
The Auditor General must conduct audits of the Rend Lake
Conservancy District as provided in Section 25.5 of the River
Conservancy Districts Act.
The Auditor General must conduct financial audits of the
Southeastern Illinois Economic Development Authority as
provided in Section 70 of the Southeastern Illinois Economic
Development Authority Act.
The Auditor General shall conduct a compliance audit in
accordance with subsections (d) and (f) of Section 30 of the
Innovation Development and Economy Act.
The Auditor General shall conduct a compliance audit in
accordance with subsections (d) and (g) of Section 5-45 of the
Statewide Innovation Development and Economy Act.
(Source: P.A. 104-2, eff. 6-16-25.)
(Text of Section after amendment by P.A. 104-457)
Sec. 3-1. Jurisdiction of Auditor General. The Auditor

SB3019 Enrolled - 760 - LRB104 20255 HLH 33706 b
General has jurisdiction over all State agencies to make post
audits and investigations authorized by or under this Act or
the Constitution.
The Auditor General has jurisdiction over local government
agencies and private agencies only:
(a) to make such post audits authorized by or under
this Act as are necessary and incidental to a post audit of
a State agency or of a program administered by a State
agency involving public funds of the State, but this
jurisdiction does not include any authority to review
local governmental agencies in the obligation, receipt,
expenditure or use of public funds of the State that are
granted without limitation or condition imposed by law,
other than the general limitation that such funds be used
for public purposes;
(b) to make investigations authorized by or under this
Act or the Constitution; and
(c) to make audits of the records of local government
agencies to verify actual costs of state-mandated programs
when directed to do so by the Legislative Audit Commission
at the request of the State Board of Appeals under the
State Mandates Act.
In addition to the foregoing, the Auditor General may
conduct an audit of the Metropolitan Pier and Exposition
Authority, the Northern Illinois Transit Authority, the
Suburban Bus Division, the Commuter Rail Division and the

SB3019 Enrolled - 761 - LRB104 20255 HLH 33706 b
Chicago Transit Authority and any other subsidized carrier
when authorized by the Legislative Audit Commission. Such
audit may be a financial, management or program audit, or any
combination thereof.
The audit shall determine whether they are operating in
accordance with all applicable laws and regulations. Subject
to the limitations of this Act, the Legislative Audit
Commission may by resolution specify additional determinations
to be included in the scope of the audit.
In addition to the foregoing, the Auditor General must
also conduct a financial audit of the Illinois Sports
Facilities Authority's expenditures of public funds in
connection with the reconstruction, renovation, remodeling,
extension, or improvement of all or substantially all of any
existing "facility", as that term is defined in the Illinois
Sports Facilities Authority Act.
The Auditor General may also conduct an audit, when
authorized by the Legislative Audit Commission, of any
hospital which receives 10% or more of its gross revenues from
payments from the State of Illinois, Department of Healthcare
and Family Services (formerly Department of Public Aid),
Medical Assistance Program.
The Auditor General is authorized to conduct financial and
compliance audits of the Illinois Distance Learning Foundation
and the Illinois Conservation Foundation.
As soon as practical after August 18, 1995 (the effective

SB3019 Enrolled - 762 - LRB104 20255 HLH 33706 b
date of Public Act 89-386), the Auditor General shall conduct
a compliance and management audit of the City of Chicago and
any other entity with regard to the operation of Chicago
O'Hare International Airport, Chicago Midway Airport and
Merrill C. Meigs Field. The audit shall include, but not be
limited to, an examination of revenues, expenses, and
transfers of funds; purchasing and contracting policies and
practices; staffing levels; and hiring practices and
procedures. When completed, the audit required by this
paragraph shall be distributed in accordance with Section
3-14.
The Auditor General must conduct an audit of the Health
Facilities and Services Review Board pursuant to Section 19.5
of the Illinois Health Facilities Planning Act.
The Auditor General of the State of Illinois shall
annually conduct or cause to be conducted a financial and
compliance audit of the books and records of any county water
commission organized pursuant to the Water Commission Act of
1985 and shall file a copy of the report of that audit with the
Governor and the Legislative Audit Commission. The filed audit
shall be open to the public for inspection. The cost of the
audit shall be charged to the county water commission in
accordance with Section 6z-27 of the State Finance Act. The
county water commission shall make available to the Auditor
General its books and records and any other documentation,
whether in the possession of its trustees or other parties,

SB3019 Enrolled - 763 - LRB104 20255 HLH 33706 b
necessary to conduct the audit required. These audit
requirements apply only through July 1, 2007.
The Auditor General must conduct audits of the Rend Lake
Conservancy District as provided in Section 25.5 of the River
Conservancy Districts Act.
The Auditor General must conduct financial audits of the
Southeastern Illinois Economic Development Authority as
provided in Section 70 of the Southeastern Illinois Economic
Development Authority Act.
The Auditor General shall conduct a compliance audit in
accordance with subsections (d) and (f) of Section 30 of the
Innovation Development and Economy Act.
The Auditor General shall conduct a compliance audit in
accordance with subsections (d) and (g) of Section 5-45 of the
Statewide Innovation Development and Economy Act.
(Source: P.A. 104-2, eff. 6-16-25; 104-457, eff. 6-1-26.)
Section 100-10. The State Finance Act is amended by
changing Sections 6z-18 and 6z-20 as follows:
(30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
Sec. 6z-18. Local Government Tax Fund. A portion of the
money paid into the Local Government Tax Fund from sales of
tangible personal property taxed at the 1% rate under the
Retailers' Occupation Tax Act and the Service Occupation Tax
Act, which occurred in municipalities, shall be distributed to

SB3019 Enrolled - 764 - LRB104 20255 HLH 33706 b
each municipality based upon the sales which occurred in that
municipality. The remainder shall be distributed to each
county based upon the sales which occurred in the
unincorporated area of that county.
Moneys transferred from the Grocery Tax Replacement Fund
to the Local Government Tax Fund under Section 6z-130 shall be
treated under this Section in the same manner as if they had
been remitted with the return on which they were reported.
A portion of the money paid into the Local Government Tax
Fund from the 6.25% general use tax rate on the selling price
of tangible personal property which is purchased outside
Illinois at retail from a retailer and which is titled or
registered by any agency of this State's government shall be
distributed to municipalities as provided in this paragraph.
Each municipality shall receive the amount attributable to
sales for which Illinois addresses for titling or registration
purposes are given as being in such municipality. The
remainder of the money paid into the Local Government Tax Fund
from such sales shall be distributed to counties. Each county
shall receive the amount attributable to sales for which
Illinois addresses for titling or registration purposes are
given as being located in the unincorporated area of such
county.
A portion of the money paid into the Local Government Tax
Fund from the 6.25% general rate (and, beginning July 1, 2000
and through December 31, 2000, the 1.25% rate on motor fuel and

SB3019 Enrolled - 765 - LRB104 20255 HLH 33706 b
gasohol, and beginning on August 6, 2010 through August 15,
2010, and beginning again on August 5, 2022 through August 14,
2022, the 1.25% rate on sales tax holiday items) on sales
subject to taxation under the Retailers' Occupation Tax Act
and the Service Occupation Tax Act, which occurred in
municipalities, shall be distributed to each municipality,
based upon the sales which occurred in that municipality. The
remainder shall be distributed to each county, based upon the
sales which occurred in the unincorporated area of such
county.
For the purpose of determining allocation to the local
government unit, a retail sale by a producer of coal or other
mineral mined in Illinois is a sale at retail at the place
where the coal or other mineral mined in Illinois is extracted
from the earth. This paragraph does not apply to coal or other
mineral when it is delivered or shipped by the seller to the
purchaser at a point outside Illinois so that the sale is
exempt under the United States Constitution as a sale in
interstate or foreign commerce.
Whenever the Department determines that a refund of money
paid into the Local Government Tax Fund should be made to a
claimant instead of issuing a credit memorandum, the
Department shall notify the State Comptroller, who shall cause
the order to be drawn for the amount specified, and to the
person named, in such notification from the Department. Such
refund shall be paid by the State Treasurer out of the Local

SB3019 Enrolled - 766 - LRB104 20255 HLH 33706 b
Government Tax Fund.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected
during the second preceding calendar month for sales within a
STAR bond district and deposited into the Local Government Tax
Fund, less 3% of that amount, which shall be transferred into
the Tax Compliance and Administration Fund and shall be used
by the Department, subject to appropriation, to cover the
costs of the Department in administering the Innovation
Development and Economy Act.
As soon as possible after the first day of each month,
beginning July 1, 2026, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Statewide
Innovation Development and Economy Act, collected during the
second preceding calendar month for sales within a STAR bond
district and deposited into the Local Government Tax Fund,
less 3% of that amount, which shall be transferred to the Tax
Compliance and Administration Fund and shall be used by the
Department, subject to appropriation, to cover the costs of
the Department in administering the Statewide Innovation

SB3019 Enrolled - 767 - LRB104 20255 HLH 33706 b
Development and Economy Act.
After the monthly transfers transfer to the STAR Bonds
Revenue Fund, on or before the 25th day of each calendar month,
the Department shall prepare and certify to the Comptroller
the disbursement of stated sums of money to named
municipalities and counties, the municipalities and counties
to be those entitled to distribution of taxes or penalties
paid to the Department during the second preceding calendar
month. The amount to be paid to each municipality or county
shall be the amount (not including credit memoranda) collected
during the second preceding calendar month by the Department
and paid into the Local Government Tax Fund, plus an amount the
Department determines is necessary to offset any amounts which
were erroneously paid to a different taxing body, and not
including an amount equal to the amount of refunds made during
the second preceding calendar month by the Department, and not
including any amount which the Department determines is
necessary to offset any amounts which are payable to a
different taxing body but were erroneously paid to the
municipality or county, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund. Within 10 days
after receipt, by the Comptroller, of the disbursement
certification to the municipalities and counties, provided for
in this Section to be given to the Comptroller by the
Department, the Comptroller shall cause the orders to be drawn
for the respective amounts in accordance with the directions

SB3019 Enrolled - 768 - LRB104 20255 HLH 33706 b
contained in such certification.
When certifying the amount of monthly disbursement to a
municipality or county under this Section, the Department
shall increase or decrease that amount by an amount necessary
to offset any misallocation of previous disbursements. The
offset amount shall be the amount erroneously disbursed within
the 6 months preceding the time a misallocation is discovered.
The provisions directing the distributions from the
special fund in the State treasury provided for in this
Section shall constitute an irrevocable and continuing
appropriation of all amounts as provided herein. The State
Treasurer and State Comptroller are hereby authorized to make
distributions as provided in this Section.
In construing any development, redevelopment, annexation,
preannexation, or other lawful agreement in effect prior to
September 1, 1990, which describes or refers to receipts from
a county or municipal retailers' occupation tax, use tax or
service occupation tax which now cannot be imposed, such
description or reference shall be deemed to include the
replacement revenue for such abolished taxes, distributed from
the Local Government Tax Fund.
As soon as possible after March 8, 2013 (the effective
date of Public Act 98-3), the State Comptroller shall order
and the State Treasurer shall transfer $6,600,000 from the
Local Government Tax Fund to the Illinois State Medical
Disciplinary Fund.

SB3019 Enrolled - 769 - LRB104 20255 HLH 33706 b
(Source: P.A. 102-700, Article 60, Section 60-10, eff.
4-19-22; 102-700, Article 65, Section 65-15, eff. 4-19-22;
103-154, eff. 6-30-23.)
(30 ILCS 105/6z-20) (from Ch. 127, par. 142z-20)
(Text of Section before amendment by P.A. 104-457)
Sec. 6z-20. County and Mass Transit District Fund. Of the
money received from the 6.25% general rate (and, beginning
July 1, 2000 and through December 31, 2000, the 1.25% rate on
motor fuel and gasohol, and beginning on August 6, 2010
through August 15, 2010, and beginning again on August 5, 2022
through August 14, 2022, the 1.25% rate on sales tax holiday
items) on sales subject to taxation under the Retailers'
Occupation Tax Act and Service Occupation Tax Act and paid
into the County and Mass Transit District Fund, distribution
to the Regional Transportation Authority tax fund, created
pursuant to Section 4.03 of the Regional Transportation
Authority Act, for deposit therein shall be made based upon
the retail sales occurring in a county having more than
3,000,000 inhabitants. The remainder shall be distributed to
each county having 3,000,000 or fewer inhabitants based upon
the retail sales occurring in each such county.
For the purpose of determining allocation to the local
government unit, a retail sale by a producer of coal or other
mineral mined in Illinois is a sale at retail at the place
where the coal or other mineral mined in Illinois is extracted

SB3019 Enrolled - 770 - LRB104 20255 HLH 33706 b
from the earth. This paragraph does not apply to coal or other
mineral when it is delivered or shipped by the seller to the
purchaser at a point outside Illinois so that the sale is
exempt under the United States Constitution as a sale in
interstate or foreign commerce.
Of the money received from the 6.25% general use tax rate
on tangible personal property which is purchased outside
Illinois at retail from a retailer and which is titled or
registered by any agency of this State's government and paid
into the County and Mass Transit District Fund, the amount for
which Illinois addresses for titling or registration purposes
are given as being in each county having more than 3,000,000
inhabitants shall be distributed into the Regional
Transportation Authority tax fund, created pursuant to Section
4.03 of the Regional Transportation Authority Act. The
remainder of the money paid from such sales shall be
distributed to each county based on sales for which Illinois
addresses for titling or registration purposes are given as
being located in the county. Any money paid into the Regional
Transportation Authority Occupation and Use Tax Replacement
Fund from the County and Mass Transit District Fund prior to
January 14, 1991, which has not been paid to the Authority
prior to that date, shall be transferred to the Regional
Transportation Authority tax fund.
Whenever the Department determines that a refund of money
paid into the County and Mass Transit District Fund should be

SB3019 Enrolled - 771 - LRB104 20255 HLH 33706 b
made to a claimant instead of issuing a credit memorandum, the
Department shall notify the State Comptroller, who shall cause
the order to be drawn for the amount specified, and to the
person named, in such notification from the Department. Such
refund shall be paid by the State Treasurer out of the County
and Mass Transit District Fund.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected
during the second preceding calendar month for sales within a
STAR bond district and deposited into the County and Mass
Transit District Fund, less 3% of that amount, which shall be
transferred into the Tax Compliance and Administration Fund
and shall be used by the Department, subject to appropriation,
to cover the costs of the Department in administering the
Innovation Development and Economy Act.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to the Regional
Transportation Authority and to named counties, the counties
to be those entitled to distribution, as hereinabove provided,
of taxes or penalties paid to the Department during the second

SB3019 Enrolled - 772 - LRB104 20255 HLH 33706 b
preceding calendar month. The amount to be paid to the
Regional Transportation Authority and each county having
3,000,000 or fewer inhabitants shall be the amount (not
including credit memoranda) collected during the second
preceding calendar month by the Department and paid into the
County and Mass Transit District Fund, plus an amount the
Department determines is necessary to offset any amounts which
were erroneously paid to a different taxing body, and not
including an amount equal to the amount of refunds made during
the second preceding calendar month by the Department, and not
including any amount which the Department determines is
necessary to offset any amounts which were payable to a
different taxing body but were erroneously paid to the
Regional Transportation Authority or county, and not including
any amounts that are transferred to the STAR Bonds Revenue
Fund, less 1.5% of the amount to be paid to the Regional
Transportation Authority, which shall be transferred into the
Tax Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the Regional
Transportation Authority, shall prepare and certify to the
State Comptroller the amount to be transferred into the Tax
Compliance and Administration Fund under this Section. Within
10 days after receipt, by the Comptroller, of the disbursement
certification to the Regional Transportation Authority,
counties, and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by

SB3019 Enrolled - 773 - LRB104 20255 HLH 33706 b
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in such certification.
When certifying the amount of a monthly disbursement to
the Regional Transportation Authority or to a county under
this Section, the Department shall increase or decrease that
amount by an amount necessary to offset any misallocation of
previous disbursements. The offset amount shall be the amount
erroneously disbursed within the 6 months preceding the time a
misallocation is discovered.
The provisions directing the distributions from the
special fund in the State Treasury provided for in this
Section and from the Regional Transportation Authority tax
fund created by Section 4.03 of the Regional Transportation
Authority Act shall constitute an irrevocable and continuing
appropriation of all amounts as provided herein. The State
Treasurer and State Comptroller are hereby authorized to make
distributions as provided in this Section.
In construing any development, redevelopment, annexation,
preannexation or other lawful agreement in effect prior to
September 1, 1990, which describes or refers to receipts from
a county or municipal retailers' occupation tax, use tax or
service occupation tax which now cannot be imposed, such
description or reference shall be deemed to include the
replacement revenue for such abolished taxes, distributed from
the County and Mass Transit District Fund or Local Government

SB3019 Enrolled - 774 - LRB104 20255 HLH 33706 b
Distributive Fund, as the case may be.
(Source: P.A. 102-700, eff. 4-19-22.)
(Text of Section after amendment by P.A. 104-457)
Sec. 6z-20. County and Mass Transit District Fund. Of the
money received from the 6.25% general rate (and, beginning
July 1, 2000 and through December 31, 2000, the 1.25% rate on
motor fuel and gasohol, and beginning on August 6, 2010
through August 15, 2010, and beginning again on August 5, 2022
through August 14, 2022, the 1.25% rate on sales tax holiday
items) on sales subject to taxation under the Retailers'
Occupation Tax Act and Service Occupation Tax Act and paid
into the County and Mass Transit District Fund, distribution
to the Northern Illinois Transit Authority tax fund, created
pursuant to Section 4.03 of the Northern Illinois Transit
Authority Act, for deposit therein shall be made based upon
the retail sales occurring in a county having more than
3,000,000 inhabitants. The remainder shall be distributed to
each county having 3,000,000 or fewer inhabitants based upon
the retail sales occurring in each such county.
For the purpose of determining allocation to the local
government unit, a retail sale by a producer of coal or other
mineral mined in Illinois is a sale at retail at the place
where the coal or other mineral mined in Illinois is extracted
from the earth. This paragraph does not apply to coal or other
mineral when it is delivered or shipped by the seller to the

SB3019 Enrolled - 775 - LRB104 20255 HLH 33706 b
purchaser at a point outside Illinois so that the sale is
exempt under the United States Constitution as a sale in
interstate or foreign commerce.
Of the money received from the 6.25% general use tax rate
on tangible personal property which is purchased outside
Illinois at retail from a retailer and which is titled or
registered by any agency of this State's government and paid
into the County and Mass Transit District Fund, the amount for
which Illinois addresses for titling or registration purposes
are given as being in each county having more than 3,000,000
inhabitants shall be distributed into the Northern Illinois
Transit Authority tax fund, created pursuant to Section 4.03
of the Northern Illinois Transit Authority Act. The remainder
of the money paid from such sales shall be distributed to each
county based on sales for which Illinois addresses for titling
or registration purposes are given as being located in the
county. Any money paid into the Northern Illinois Transit
Authority Occupation and Use Tax Replacement Fund from the
County and Mass Transit District Fund prior to January 14,
1991, which has not been paid to the Authority prior to that
date, shall be transferred to the Northern Illinois Transit
Authority tax fund.
Whenever the Department determines that a refund of money
paid into the County and Mass Transit District Fund should be
made to a claimant instead of issuing a credit memorandum, the
Department shall notify the State Comptroller, who shall cause

SB3019 Enrolled - 776 - LRB104 20255 HLH 33706 b
the order to be drawn for the amount specified, and to the
person named, in such notification from the Department. Such
refund shall be paid by the State Treasurer out of the County
and Mass Transit District Fund.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected
during the second preceding calendar month for sales within a
STAR bond district and deposited into the County and Mass
Transit District Fund, less 3% of that amount, which shall be
transferred into the Tax Compliance and Administration Fund
and shall be used by the Department, subject to appropriation,
to cover the costs of the Department in administering the
Innovation Development and Economy Act.
As soon as possible after the first day of each month,
beginning July 1, 2026, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Statewide
Innovation Development and Economy Act, collected during the
second preceding calendar month for sales within a STAR bond
district and deposited into the County and Mass Transit
District Fund, less 3% of that amount, which shall be

SB3019 Enrolled - 777 - LRB104 20255 HLH 33706 b
transferred into the Tax Compliance and Administration Fund
and shall be used by the Department, subject to appropriation,
to cover the costs of the Department in administering the
Statewide Innovation Development and Economy Act.
After the monthly transfers transfer to the STAR Bonds
Revenue Fund, on or before the 25th day of each calendar month,
the Department shall prepare and certify to the Comptroller
the disbursement of stated sums of money to the Northern
Illinois Transit Authority and to named counties, the counties
to be those entitled to distribution, as hereinabove provided,
of taxes or penalties paid to the Department during the second
preceding calendar month. The amount to be paid to the
Northern Illinois Transit Authority and each county having
3,000,000 or fewer inhabitants shall be the amount (not
including credit memoranda) collected during the second
preceding calendar month by the Department and paid into the
County and Mass Transit District Fund, plus an amount the
Department determines is necessary to offset any amounts which
were erroneously paid to a different taxing body, and not
including an amount equal to the amount of refunds made during
the second preceding calendar month by the Department, and not
including any amount which the Department determines is
necessary to offset any amounts which were payable to a
different taxing body but were erroneously paid to the
Northern Illinois Transit Authority or county, and not
including any amounts that are transferred to the STAR Bonds

SB3019 Enrolled - 778 - LRB104 20255 HLH 33706 b
Revenue Fund, less 1.5% of the amount to be paid to the
Northern Illinois Transit Authority, which shall be
transferred into the Tax Compliance and Administration Fund.
The Department, at the time of each monthly disbursement to
the Northern Illinois Transit Authority, shall prepare and
certify to the State Comptroller the amount to be transferred
into the Tax Compliance and Administration Fund under this
Section. Within 10 days after receipt, by the Comptroller, of
the disbursement certification to the Northern Illinois
Transit Authority, counties, and the Tax Compliance and
Administration Fund provided for in this Section to be given
to the Comptroller by the Department, the Comptroller shall
cause the orders to be drawn for the respective amounts in
accordance with the directions contained in such
certification.
When certifying the amount of a monthly disbursement to
the Northern Illinois Transit Authority or to a county under
this Section, the Department shall increase or decrease that
amount by an amount necessary to offset any misallocation of
previous disbursements. The offset amount shall be the amount
erroneously disbursed within the 6 months preceding the time a
misallocation is discovered.
The provisions directing the distributions from the
special fund in the State treasury provided for in this
Section and from the Northern Illinois Transit Authority tax
fund created by Section 4.03 of the Northern Illinois Transit

SB3019 Enrolled - 779 - LRB104 20255 HLH 33706 b
Authority Act shall constitute an irrevocable and continuing
appropriation of all amounts as provided herein. The State
Treasurer and State Comptroller are hereby authorized to make
distributions as provided in this Section.
In construing any development, redevelopment, annexation,
preannexation or other lawful agreement in effect prior to
September 1, 1990, which describes or refers to receipts from
a county or municipal retailers' occupation tax, use tax or
service occupation tax which now cannot be imposed, such
description or reference shall be deemed to include the
replacement revenue for such abolished taxes, distributed from
the County and Mass Transit District Fund or Local Government
Distributive Fund, as the case may be.
(Source: P.A. 104-457, eff. 6-1-26.)
Section 100-15. The Counties Code is amended by changing
Sections 5-1006, 5-1006.8, 5-1006.9, and 5-1007 as follows:
(55 ILCS 5/5-1006) (from Ch. 34, par. 5-1006)
Sec. 5-1006. Home Rule County Retailers' Occupation Tax
Law. Any county that is a home rule unit may impose a tax upon
all persons engaged in the business of selling tangible
personal property, other than an item of tangible personal
property titled or registered with an agency of this State's
government, at retail in the county on the gross receipts from
such sales made in the course of their business. If imposed,

SB3019 Enrolled - 780 - LRB104 20255 HLH 33706 b
this tax shall only be imposed in 1/4% increments. On and after
September 1, 1991, this additional tax may not be imposed on
tangible personal property taxed at the 1% rate under the
Retailers' Occupation Tax Act (or at the 0% rate imposed under
this amendatory Act of the 102nd General Assembly). Beginning
December 1, 2019, this tax is not imposed on sales of aviation
fuel unless the tax revenue is expended for airport-related
purposes. If the county does not have an airport-related
purpose to which it dedicates aviation fuel tax revenue, then
aviation fuel is excluded from the tax. The county must comply
with the certification requirements for airport-related
purposes under Section 2-22 of the Retailers' Occupation Tax
Act. For purposes of this Section, "airport-related purposes"
has the meaning ascribed in Section 6z-20.2 of the State
Finance Act. This exclusion for aviation fuel only applies for
so long as the revenue use requirements of 49 U.S.C. 47107(b)
and 49 U.S.C. 47133 are binding on the county. The changes made
to this Section by this amendatory Act of the 101st General
Assembly are a denial and limitation of home rule powers and
functions under subsection (g) of Section 6 of Article VII of
the Illinois Constitution.
If, on January 1, 2025, a unit of local government has in
effect a tax under this Section, or if, after January 1, 2025,
a unit of local government imposes a tax under this Section,
then that tax applies to leases of tangible personal property
in effect, entered into, or renewed on or after that date in

SB3019 Enrolled - 781 - LRB104 20255 HLH 33706 b
the same manner as the tax under this Section and in accordance
with the changes made by this amendatory Act of the 103rd
General Assembly.
The tax imposed by a home rule county pursuant to this
Section and all civil penalties that may be assessed as an
incident thereof shall be collected and enforced by the State
Department of Revenue. The certificate of registration that is
issued by the Department to a retailer under the Retailers'
Occupation Tax Act shall permit the retailer to engage in a
business that is taxable under any ordinance or resolution
enacted pursuant to this Section without registering
separately with the Department under such ordinance or
resolution or under this Section. The Department shall have
full power to administer and enforce this Section; to collect
all taxes and penalties due hereunder; to dispose of taxes and
penalties so collected in the manner hereinafter provided; and
to determine all rights to credit memoranda arising on account
of the erroneous payment of tax or penalty hereunder. In the
administration of, and compliance with, this Section, the
Department and persons who are subject to this Section shall
have the same rights, remedies, privileges, immunities, powers
and duties, and be subject to the same conditions,
restrictions, limitations, penalties and definitions of terms,
and employ the same modes of procedure, as are prescribed in
Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through
2-65 (in respect to all provisions therein other than the

SB3019 Enrolled - 782 - LRB104 20255 HLH 33706 b
State rate of tax), 3 (except as to the disposition of taxes
and penalties collected, and except that the retailer's
discount is not allowed for taxes paid on aviation fuel that
are subject to the revenue use requirements of 49 U.S.C.
47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,
5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12
and 13 of the Retailers' Occupation Tax Act and Section 3-7 of
the Uniform Penalty and Interest Act, as fully as if those
provisions were set forth herein.
No tax may be imposed by a home rule county pursuant to
this Section unless the county also imposes a tax at the same
rate pursuant to Section 5-1007.
Persons subject to any tax imposed pursuant to the
authority granted in this Section may reimburse themselves for
their seller's tax liability hereunder by separately stating
such tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax which sellers
are required to collect under the Use Tax Act, pursuant to such
bracket schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the home rule county retailers' occupation

SB3019 Enrolled - 783 - LRB104 20255 HLH 33706 b
tax fund or the Local Government Aviation Trust Fund, as
appropriate.
Except as otherwise provided in this paragraph, the
Department shall forthwith pay over to the State Treasurer, ex
officio, as trustee, all taxes and penalties collected
hereunder for deposit into the Home Rule County Retailers'
Occupation Tax Fund. Taxes and penalties collected on aviation
fuel sold on or after December 1, 2019, shall be immediately
paid over by the Department to the State Treasurer, ex
officio, as trustee, for deposit into the Local Government
Aviation Trust Fund. The Department shall only pay moneys into
the Local Government Aviation Trust Fund under this Section
for so long as the revenue use requirements of 49 U.S.C.
47107(b) and 49 U.S.C. 47133 are binding on the county.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for
sales within a STAR bond district.
As soon as possible after the first day of each month,
beginning July 1, 2026, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the

SB3019 Enrolled - 784 - LRB104 20255 HLH 33706 b
local sales tax increment, as defined in the Statewide
Innovation Development and Economy Act, collected under this
Section during the second preceding calendar month for sales
within a STAR bond district.
After the monthly transfers transfer to the STAR Bonds
Revenue Fund, on or before the 25th day of each calendar month,
the Department shall prepare and certify to the Comptroller
the disbursement of stated sums of money to named counties,
the counties to be those from which retailers have paid taxes
or penalties hereunder to the Department during the second
preceding calendar month. The amount to be paid to each county
shall be the amount (not including credit memoranda and not
including taxes and penalties collected on aviation fuel sold
on or after December 1, 2019) collected hereunder during the
second preceding calendar month by the Department plus an
amount the Department determines is necessary to offset any
amounts that were erroneously paid to a different taxing body,
and not including an amount equal to the amount of refunds made
during the second preceding calendar month by the Department
on behalf of such county, and not including any amount which
the Department determines is necessary to offset any amounts
which were payable to a different taxing body but were
erroneously paid to the county, and not including any amounts
that are transferred to the STAR Bonds Revenue Fund, less 1.5%
of the remainder, which the Department shall transfer into the
Tax Compliance and Administration Fund. The Department, at the

SB3019 Enrolled - 785 - LRB104 20255 HLH 33706 b
time of each monthly disbursement to the counties, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt, by the
Comptroller, of the disbursement certification to the counties
and the Tax Compliance and Administration Fund provided for in
this Section to be given to the Comptroller by the Department,
the Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with the directions contained
in the certification.
In addition to the disbursement required by the preceding
paragraph, an allocation shall be made in March of each year to
each county that received more than $500,000 in disbursements
under the preceding paragraph in the preceding calendar year.
The allocation shall be in an amount equal to the average
monthly distribution made to each such county under the
preceding paragraph during the preceding calendar year
(excluding the 2 months of highest receipts). The distribution
made in March of each year subsequent to the year in which an
allocation was made pursuant to this paragraph and the
preceding paragraph shall be reduced by the amount allocated
and disbursed under this paragraph in the preceding calendar
year. The Department shall prepare and certify to the
Comptroller for disbursement the allocations made in
accordance with this paragraph.
For the purpose of determining the local governmental unit

SB3019 Enrolled - 786 - LRB104 20255 HLH 33706 b
whose tax is applicable, a retail sale by a producer of coal or
other mineral mined in Illinois is a sale at retail at the
place where the coal or other mineral mined in Illinois is
extracted from the earth. This paragraph does not apply to
coal or other mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the United States Constitution as a sale
in interstate or foreign commerce.
Nothing in this Section shall be construed to authorize a
county to impose a tax upon the privilege of engaging in any
business which under the Constitution of the United States may
not be made the subject of taxation by this State.
An ordinance or resolution imposing or discontinuing a tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of June, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of September next following such adoption and
filing. Beginning January 1, 1992, an ordinance or resolution
imposing or discontinuing the tax hereunder or effecting a
change in the rate thereof shall be adopted and a certified
copy thereof filed with the Department on or before the first
day of July, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of
October next following such adoption and filing. Beginning
January 1, 1993, an ordinance or resolution imposing or

SB3019 Enrolled - 787 - LRB104 20255 HLH 33706 b
discontinuing the tax hereunder or effecting a change in the
rate thereof shall be adopted and a certified copy thereof
filed with the Department on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce this Section as of the first day of January next
following such adoption and filing. Beginning April 1, 1998,
an ordinance or resolution imposing or discontinuing the tax
hereunder or effecting a change in the rate thereof shall
either (i) be adopted and a certified copy thereof filed with
the Department on or before the first day of April, whereupon
the Department shall proceed to administer and enforce this
Section as of the first day of July next following the adoption
and filing; or (ii) be adopted and a certified copy thereof
filed with the Department on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce this Section as of the first day of January next
following the adoption and filing.
When certifying the amount of a monthly disbursement to a
county under this Section, the Department shall increase or
decrease such amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous
6 months from the time a misallocation is discovered.
This Section shall be known and may be cited as the Home
Rule County Retailers' Occupation Tax Law.
(Source: P.A. 102-700, eff. 4-19-22; 103-592, eff. 1-1-25.)

SB3019 Enrolled - 788 - LRB104 20255 HLH 33706 b
(55 ILCS 5/5-1006.8)
Sec. 5-1006.8. County Cannabis Retailers' Occupation Tax
Law.
(a) This Section may be referred to as the County Cannabis
Retailers' Occupation Tax Law. The corporate authorities of
any county may, by ordinance, impose a tax upon all persons
engaged in the business of selling cannabis, other than
cannabis purchased under the Compassionate Use of Medical
Cannabis Program Act, at retail in the county on the gross
receipts from these sales made in the course of that business.
If imposed, the tax shall be imposed only in 0.25% increments.
The tax rate may not exceed: (i) 3.75% of the gross receipts of
sales made in unincorporated areas of the county; and (ii) 3%
of the gross receipts of sales made in a municipality located
in the county. The tax imposed under this Section and all civil
penalties that may be assessed as an incident of the tax shall
be collected and enforced by the Department of Revenue. The
Department of Revenue shall have full power to administer and
enforce this Section; to collect all taxes and penalties due
hereunder; to dispose of taxes and penalties so collected in
the manner hereinafter provided; and to determine all rights
to credit memoranda arising on account of the erroneous
payment of tax or penalty under this Section. In the
administration of and compliance with this Section, the
Department of Revenue and persons who are subject to this

SB3019 Enrolled - 789 - LRB104 20255 HLH 33706 b
Section shall have the same rights, remedies, privileges,
immunities, powers and duties, and be subject to the same
conditions, restrictions, limitations, penalties, and
definitions of terms, and employ the same modes of procedure,
as are described in Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m,
1n, 2 through 2-65 (in respect to all provisions therein other
than the State rate of tax), 2a, 2b, 2c, 2i, 3 (except as to
the disposition of taxes and penalties collected), 4, 5, 5a,
5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6bb, 6c, 6d,
7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation
Tax Act and Section 3-7 of the Uniform Penalty and Interest Act
as fully as if those provisions were set forth in this Section.
(b) Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
seller's tax liability hereunder by separately stating that
tax as an additional charge, which charge may be stated in
combination, in a single amount, with any State tax that
sellers are required to collect.
(c) Whenever the Department of Revenue determines that a
refund should be made under this Section to a claimant instead
of issuing a credit memorandum, the Department of Revenue
shall notify the State Comptroller, who shall cause the order
to be drawn for the amount specified and to the person named in
the notification from the Department of Revenue.
(d) Except as otherwise provided in this Section, the The
Department of Revenue shall immediately pay over to the State

SB3019 Enrolled - 790 - LRB104 20255 HLH 33706 b
Treasurer, ex officio, as trustee, all taxes and penalties
collected hereunder for deposit into the Local Cannabis
Retailers' Occupation Tax Trust Fund.
As soon as possible after the first day of each month,
beginning July 1, 2026, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Statewide
Innovation Development and Economy Act, collected under this
Section during the second preceding calendar month for sales
within a STAR bond district.
(e) After the monthly transfer to the STAR Bonds Revenue
Fund, on On or before the 25th day of each calendar month, the
Department of Revenue shall prepare and certify to the
Comptroller the amount of money to be disbursed from the Local
Cannabis Retailers' Occupation Tax Trust Fund to counties from
which retailers have paid taxes or penalties under this
Section during the second preceding calendar month. The amount
to be paid to each county shall be the amount (not including
credit memoranda) collected under this Section from sales made
in the county during the second preceding calendar month, plus
an amount the Department of Revenue determines is necessary to
offset any amounts that were erroneously paid to a different
taxing body, and not including an amount equal to the amount of
refunds made during the second preceding calendar month by the
Department on behalf of such county, and not including any

SB3019 Enrolled - 791 - LRB104 20255 HLH 33706 b
amount that the Department determines is necessary to offset
any amounts that were payable to a different taxing body but
were erroneously paid to the county, and not including any
amounts that are transferred to the STAR Bonds Revenue Fund,
less 1.5% of the remainder, which the Department shall
transfer into the Tax Compliance and Administration Fund. The
Department, at the time of each monthly disbursement to the
counties, shall prepare and certify the State Comptroller the
amount to be transferred into the Tax Compliance and
Administration Fund under this Section. Within 10 days after
receipt by the Comptroller of the disbursement certification
to the counties and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in the certification.
(f) An ordinance or resolution imposing or discontinuing a
tax under this Section or effecting a change in the rate
thereof that is adopted on or after June 25, 2019 (the
effective date of Public Act 101-27) and for which a certified
copy is filed with the Department on or before April 1, 2020
shall be administered and enforced by the Department beginning
on July 1, 2020. For ordinances filed with the Department
after April 1, 2020, an ordinance or resolution imposing or
discontinuing a tax under this Section or effecting a change
in the rate thereof shall either (i) be adopted and a certified

SB3019 Enrolled - 792 - LRB104 20255 HLH 33706 b
copy thereof filed with the Department on or before the first
day of April, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of July
next following the adoption and filing; or (ii) be adopted and
a certified copy thereof filed with the Department on or
before the first day of October, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of January next following the adoption and filing.
(g) Notwithstanding any provision in this Section to the
contrary, if an ordinance or resolution imposing a tax under
this Section was adopted on or before October 1, 2020 and a
certified copy thereof was filed with the Department of
Revenue on or before November 1, 2020, then the Department
shall proceed to administer and enforce this Section as of May
1, 2021 for such ordinances or resolutions.
(Source: P.A. 101-27, eff. 6-25-19; 101-363, eff. 8-9-19;
101-593, eff. 12-4-19; 102-2, eff. 4-2-21.)
(55 ILCS 5/5-1006.9)
Sec. 5-1006.9. County Grocery Occupation Tax Law.
(a) The corporate authorities of any county may, by
ordinance or resolution that takes effect on or after January
1, 2026, impose a tax upon all persons engaged in the business
of selling groceries at retail in the county, but outside of
any municipality, on the gross receipts from those sales made
in the course of that business. If imposed, the tax shall be at

SB3019 Enrolled - 793 - LRB104 20255 HLH 33706 b
the rate of 1% of the gross receipts from these sales.
The tax imposed by a county under this subsection and all
civil penalties that may be assessed as an incident of the tax
shall be collected and enforced by the Department. The
certificate of registration that is issued by the Department
to a retailer under the Retailers' Occupation Tax Act shall
permit the retailer to engage in a business that is taxable
under any ordinance or resolution enacted under this
subsection without registering separately with the Department
under that ordinance or resolution or under this subsection.
The Department shall have full power to administer and
enforce this subsection; to collect all taxes and penalties
due under this subsection; to dispose of taxes and penalties
so collected in the manner provided in this Section and under
rules adopted by the Department; and to determine all rights
to credit memoranda arising on account of the erroneous
payment of tax or penalty under this subsection.
In the administration of, and compliance with, this
subsection, the Department and persons who are subject to this
subsection shall have the same rights, remedies, privileges,
immunities, powers, and duties, and be subject to the same
conditions, restrictions, limitations, penalties and
definitions of terms, and employ the same modes of procedure,
as are prescribed in Sections 1, 2 through 2-65 (in respect to
all provisions therein other than the State rate of tax and
other than the exemption for food for human consumption that

SB3019 Enrolled - 794 - LRB104 20255 HLH 33706 b
is to be consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, candy, and food that has been
prepared for immediate consumption), which is authorized to be
taxed as provided in this subsection), 2c, 3 (except as to the
disposition of taxes and penalties collected), 4, 5, 5a, 5b,
5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11,
11a, 12 and 13 of the Retailers' Occupation Tax Act and all of
the Uniform Penalty and Interest Act, as fully as if those
provisions were set forth in this Section.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
seller's tax liability hereunder by separately stating that
tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax that sellers
are required to collect under the Use Tax Act, pursuant to such
bracket schedules as the Department may prescribe.
(b) If a tax has been imposed under subsection (a), then a
service occupation tax must also be imposed at the same rate
upon all persons engaged, in the county but outside of a
municipality, in the business of making sales of service, who,
as an incident to making those sales of service, transfer
groceries, as defined in this Section, as an incident to a sale
of service.
The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be

SB3019 Enrolled - 795 - LRB104 20255 HLH 33706 b
collected and enforced by the Department. The certificate of
registration that is issued by the Department to a retailer
under the Retailers' Occupation Tax Act or the Service
Occupation Tax Act shall permit the registrant to engage in a
business that is taxable under any ordinance or resolution
enacted pursuant to this subsection without registering
separately with the Department under the ordinance or
resolution or under this subsection.
The Department shall have full power to administer and
enforce this subsection, to collect all taxes and penalties
due under this subsection, to dispose of taxes and penalties
so collected in the manner provided in this Section and under
rules adopted by the Department, and to determine all rights
to credit memoranda arising on account of the erroneous
payment of a tax or penalty under this subsection.
In the administration of and compliance with this
subsection, the Department and persons who are subject to this
subsection shall have the same rights, remedies, privileges,
immunities, powers and duties, and be subject to the same
conditions, restrictions, limitations, penalties and
definitions of terms, and employ the same modes of procedure
as are set forth in Sections 2, 2c, 3 through 3-50 (in respect
to all provisions contained in those Sections other than: (i)
the State rate of tax; (ii) the exemption for food for human
consumption that is to be consumed off the premises where it is
sold (other than alcoholic beverages, food consisting of or

SB3019 Enrolled - 796 - LRB104 20255 HLH 33706 b
infused with adult use cannabis, soft drinks, candy, and food
that has been prepared for immediate consumption), which is
authorized to be taxed as provided in this subsection; and
(iii) the exemption for food prepared for immediate
consumption and transferred incident to a sale of service
subject to the Service Occupation Tax Act or the Service Use
Tax Act by an entity licensed under the Hospital Licensing
Act, the Nursing Home Care Act, the Assisted Living and Shared
Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
Specialized Mental Health Rehabilitation Act of 2013, or the
Child Care Act of 1969, or an entity that holds a permit issued
pursuant to the Life Care Facilities Act, which is authorized
to be taxed as provided in this subsection), 4, 5, 7, 8, 9
(except as to the disposition of taxes and penalties
collected), 10, 11, 12, 13, 15, 16, 17, 18, 19, and 20 of the
Service Occupation Tax Act and all provisions of the Uniform
Penalty and Interest Act, as fully as if those provisions were
set forth in this Section.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability by separately stating the tax as an
additional charge, which may be stated in combination, in a
single amount, with State tax that servicemen are authorized
to collect under the Service Use Tax Act, pursuant to any
bracketed schedules set forth by the Department.
(c) The Department shall immediately pay over to the State

SB3019 Enrolled - 797 - LRB104 20255 HLH 33706 b
Treasurer, ex officio, as trustee, all taxes and penalties
collected under this Section. Those taxes and penalties shall
be deposited into the County Grocery Tax Trust Fund, a trust
fund created in the State treasury. Except as otherwise
provided in this Section, moneys in the County Grocery Tax
Trust Fund shall be used to make payments to counties and for
the payment of refunds under this Section.
Moneys deposited into the County Grocery Tax Trust Fund
under this Section are not subject to appropriation and shall
be used as provided in this Section. All deposits into the
County Grocery Tax Trust Fund shall be held in the County
Grocery Tax Trust Fund by the State Treasurer, ex officio, as
trustee separate and apart from all public moneys or funds of
this State.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the County Grocery Tax Trust Fund.
(d) As soon as possible after the first day of each month,
upon certification of the Department, the Comptroller shall
order transferred, and the Treasurer shall transfer, to the
STAR Bonds Revenue Fund the local sales tax increment, if any,
as defined in the Innovation Development and Economy Act,

SB3019 Enrolled - 798 - LRB104 20255 HLH 33706 b
collected under this Section.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred, and the Treasurer shall transfer, to
the STAR Bonds Revenue Fund the local sales tax increment, as
defined in the Statewide Innovation Development and Economy
Act, collected under this Section during the second preceding
calendar month for sales within a STAR bond district.
After the monthly transfers transfer to the STAR Bonds
Revenue Fund, if any, on or before the 25th day of each
calendar month, the Department shall prepare and certify to
the Comptroller the disbursement of stated sums of money to
named counties, the counties to be those from which retailers
have paid taxes or penalties under this Section to the
Department during the second preceding calendar month. The
amount to be paid to each county shall be the amount (not
including credit memoranda) collected under this Section
during the second preceding calendar month by the Department
plus an amount the Department determines is necessary to
offset any amounts that were erroneously paid to a different
taxing body, and not including an amount equal to the amount of
refunds made during the second preceding calendar month by the
Department on behalf of such county, and not including any
amount that the Department determines is necessary to offset
any amounts that were payable to a different taxing body but
were erroneously paid to the county, and not including any

SB3019 Enrolled - 799 - LRB104 20255 HLH 33706 b
amounts that are transferred to the STAR Bonds Revenue Fund.
Within 10 days after receipt by the Comptroller of the
disbursement certification to the counties provided for in
this Section to be given to the Comptroller by the Department,
the Comptroller shall cause the orders to be drawn for the
amounts in accordance with the directions contained in the
certification.
(e) Nothing in this Section shall be construed to
authorize a county to impose a tax upon the privilege of
engaging in any business which under the Constitution of the
United States may not be made the subject of taxation by this
State.
(f) Except as otherwise provided in this subsection, an
ordinance or resolution imposing or discontinuing the tax
hereunder or effecting a change in the rate thereof shall
either (i) be adopted and a certified copy thereof filed with
the Department on or before the first day of April, whereupon
the Department shall proceed to administer and enforce this
Section as of the first day of July next following the adoption
and filing, or (ii) be adopted and a certified copy thereof
filed with the Department on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce this Section as of the first day of January next
following the adoption and filing.
(g) When certifying the amount of a monthly disbursement
to a county under this Section, the Department shall increase

SB3019 Enrolled - 800 - LRB104 20255 HLH 33706 b
or decrease the amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous
6 months from the time a misallocation is discovered.
(h) As used in this Section, "Department" means the
Department of Revenue.
For purposes of the tax authorized to be imposed under
subsection (a), "groceries" has the same meaning as "food for
human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, food
consisting of or infused with adult use cannabis, soft drinks,
candy, and food that has been prepared for immediate
consumption)", as further defined in Section 2-10 of the
Retailers' Occupation Tax Act.
For purposes of the tax authorized to be imposed under
subsection (b), "groceries" has the same meaning as "food for
human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, food
consisting of or infused with adult use cannabis, soft drinks,
candy, and food that has been prepared for immediate
consumption)", as further defined in Section 3-10 of the
Service Occupation Tax Act.
For purposes of the tax authorized to be imposed under
subsection (b), "groceries" also means food prepared for
immediate consumption and transferred incident to a sale of
service subject to the Service Occupation Tax Act or the

SB3019 Enrolled - 801 - LRB104 20255 HLH 33706 b
Service Use Tax Act by an entity licensed under the Hospital
Licensing Act, the Nursing Home Care Act, the Assisted Living
and Shared Housing Act, the ID/DD Community Care Act, the
MC/DD Act, the Specialized Mental Health Rehabilitation Act of
2013, or the Child Care Act of 1969, or an entity that holds a
permit issued pursuant to the Life Care Facilities Act.
(i) This Section may be referred to as the County Grocery
Occupation Tax Law.
(Source: P.A. 103-781, eff. 8-5-24; 104-6, eff. 1-1-26.)
(55 ILCS 5/5-1007) (from Ch. 34, par. 5-1007)
Sec. 5-1007. Home Rule County Service Occupation Tax Law.
The corporate authorities of a home rule county may impose a
tax upon all persons engaged, in such county, in the business
of making sales of service at the same rate of tax imposed
pursuant to Section 5-1006 of the selling price of all
tangible personal property transferred by such servicemen
either in the form of tangible personal property or in the form
of real estate as an incident to a sale of service. If imposed,
such tax shall only be imposed in 1/4% increments. On and after
September 1, 1991, this additional tax may not be imposed on
tangible personal property taxed at the 1% rate under the
Service Occupation Tax Act (or at the 0% rate imposed under
this amendatory Act of the 102nd General Assembly). Beginning
December 1, 2019, this tax is not imposed on sales of aviation
fuel unless the tax revenue is expended for airport-related

SB3019 Enrolled - 802 - LRB104 20255 HLH 33706 b
purposes. If the county does not have an airport-related
purpose to which it dedicates aviation fuel tax revenue, then
aviation fuel is excluded from the tax. The county must comply
with the certification requirements for airport-related
purposes under Section 2-22 of the Retailers' Occupation Tax
Act. For purposes of this Section, "airport-related purposes"
has the meaning ascribed in Section 6z-20.2 of the State
Finance Act. This exclusion for aviation fuel only applies for
so long as the revenue use requirements of 49 U.S.C. 47107(b)
and 49 U.S.C. 47133 are binding on the county. The changes made
to this Section by this amendatory Act of the 101st General
Assembly are a denial and limitation of home rule powers and
functions under subsection (g) of Section 6 of Article VII of
the Illinois Constitution. The tax imposed by a home rule
county pursuant to this Section and all civil penalties that
may be assessed as an incident thereof shall be collected and
enforced by the State Department of Revenue. The certificate
of registration which is issued by the Department to a
retailer under the Retailers' Occupation Tax Act or under the
Service Occupation Tax Act shall permit such registrant to
engage in a business which is taxable under any ordinance or
resolution enacted pursuant to this Section without
registering separately with the Department under such
ordinance or resolution or under this Section. The Department
shall have full power to administer and enforce this Section;
to collect all taxes and penalties due hereunder; to dispose

SB3019 Enrolled - 803 - LRB104 20255 HLH 33706 b
of taxes and penalties so collected in the manner hereinafter
provided; and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty
hereunder. In the administration of, and compliance with, this
Section the Department and persons who are subject to this
Section shall have the same rights, remedies, privileges,
immunities, powers and duties, and be subject to the same
conditions, restrictions, limitations, penalties and
definitions of terms, and employ the same modes of procedure,
as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
respect to all provisions therein other than the State rate of
tax), 4 (except that the reference to the State shall be to the
taxing county), 5, 7, 8 (except that the jurisdiction to which
the tax shall be a debt to the extent indicated in that Section
8 shall be the taxing county), 9 (except as to the disposition
of taxes and penalties collected, and except that the returned
merchandise credit for this county tax may not be taken
against any State tax, and except that the retailer's discount
is not allowed for taxes paid on aviation fuel that are subject
to the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133), 10, 11, 12 (except the reference therein to
Section 2b of the Retailers' Occupation Tax Act), 13 (except
that any reference to the State shall mean the taxing county),
the first paragraph of Section 15, 16, 17, 18, 19 and 20 of the
Service Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act, as fully as if those provisions were

SB3019 Enrolled - 804 - LRB104 20255 HLH 33706 b
set forth herein.
No tax may be imposed by a home rule county pursuant to
this Section unless such county also imposes a tax at the same
rate pursuant to Section 5-1006.
If, on January 1, 2025, a unit of local government has in
effect a tax under this Section, or if, after January 1, 2025,
a unit of local government imposes a tax under this Section,
then that tax applies to leases of tangible personal property
in effect, entered into, or renewed on or after that date in
the same manner as the tax under this Section and in accordance
with the changes made by this amendatory Act of the 103rd
General Assembly.
Persons subject to any tax imposed pursuant to the
authority granted in this Section may reimburse themselves for
their serviceman's tax liability hereunder by separately
stating such tax as an additional charge, which charge may be
stated in combination, in a single amount, with State tax
which servicemen are authorized to collect under the Service
Use Tax Act, pursuant to such bracket schedules as the
Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in such
notification from the Department. Such refund shall be paid by

SB3019 Enrolled - 805 - LRB104 20255 HLH 33706 b
the State Treasurer out of the home rule county retailers'
occupation tax fund or the Local Government Aviation Trust
Fund, as appropriate.
Except as otherwise provided in this paragraph, the
Department shall forthwith pay over to the State Treasurer, ex
officio, as trustee, all taxes and penalties collected
hereunder for deposit into the Home Rule County Retailers'
Occupation Tax Fund. Taxes and penalties collected on aviation
fuel sold on or after December 1, 2019, shall be immediately
paid over by the Department to the State Treasurer, ex
officio, as trustee, for deposit into the Local Government
Aviation Trust Fund. The Department shall only pay moneys into
the Local Government Aviation Trust Fund under this Section
for so long as the revenue use requirements of 49 U.S.C.
47107(b) and 49 U.S.C. 47133 are binding on the county.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for
sales within a STAR bond district.
As soon as possible after the first day of each month,
beginning July 1, 2026, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the

SB3019 Enrolled - 806 - LRB104 20255 HLH 33706 b
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Statewide
Innovation Development and Economy Act, collected under this
Section during the second preceding calendar month for sales
within a STAR bond district.
After the monthly transfers transfer to the STAR Bonds
Revenue Fund, on or before the 25th day of each calendar month,
the Department shall prepare and certify to the Comptroller
the disbursement of stated sums of money to named counties,
the counties to be those from which suppliers and servicemen
have paid taxes or penalties hereunder to the Department
during the second preceding calendar month. The amount to be
paid to each county shall be the amount (not including credit
memoranda and not including taxes and penalties collected on
aviation fuel sold on or after December 1, 2019) collected
hereunder during the second preceding calendar month by the
Department, and not including an amount equal to the amount of
refunds made during the second preceding calendar month by the
Department on behalf of such county, and not including any
amounts that are transferred to the STAR Bonds Revenue Fund,
less 1.5% of the remainder, which the Department shall
transfer into the Tax Compliance and Administration Fund. The
Department, at the time of each monthly disbursement to the
counties, shall prepare and certify to the State Comptroller
the amount to be transferred into the Tax Compliance and
Administration Fund under this Section. Within 10 days after

SB3019 Enrolled - 807 - LRB104 20255 HLH 33706 b
receipt, by the Comptroller, of the disbursement certification
to the counties and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in such certification.
In addition to the disbursement required by the preceding
paragraph, an allocation shall be made in each year to each
county which received more than $500,000 in disbursements
under the preceding paragraph in the preceding calendar year.
The allocation shall be in an amount equal to the average
monthly distribution made to each such county under the
preceding paragraph during the preceding calendar year
(excluding the 2 months of highest receipts). The distribution
made in March of each year subsequent to the year in which an
allocation was made pursuant to this paragraph and the
preceding paragraph shall be reduced by the amount allocated
and disbursed under this paragraph in the preceding calendar
year. The Department shall prepare and certify to the
Comptroller for disbursement the allocations made in
accordance with this paragraph.
Nothing in this Section shall be construed to authorize a
county to impose a tax upon the privilege of engaging in any
business which under the Constitution of the United States may
not be made the subject of taxation by this State.
An ordinance or resolution imposing or discontinuing a tax

SB3019 Enrolled - 808 - LRB104 20255 HLH 33706 b
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of June, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of September next following such adoption and
filing. Beginning January 1, 1992, an ordinance or resolution
imposing or discontinuing the tax hereunder or effecting a
change in the rate thereof shall be adopted and a certified
copy thereof filed with the Department on or before the first
day of July, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of
October next following such adoption and filing. Beginning
January 1, 1993, an ordinance or resolution imposing or
discontinuing the tax hereunder or effecting a change in the
rate thereof shall be adopted and a certified copy thereof
filed with the Department on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce this Section as of the first day of January next
following such adoption and filing. Beginning April 1, 1998,
an ordinance or resolution imposing or discontinuing the tax
hereunder or effecting a change in the rate thereof shall
either (i) be adopted and a certified copy thereof filed with
the Department on or before the first day of April, whereupon
the Department shall proceed to administer and enforce this
Section as of the first day of July next following the adoption
and filing; or (ii) be adopted and a certified copy thereof

SB3019 Enrolled - 809 - LRB104 20255 HLH 33706 b
filed with the Department on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce this Section as of the first day of January next
following the adoption and filing.
This Section shall be known and may be cited as the Home
Rule County Service Occupation Tax Law.
(Source: P.A. 102-700, eff. 4-19-22; 103-592, eff. 1-1-25.)
Section 100-20. The Illinois Municipal Code is amended by
changing Sections 8-4-1, 8-11-1, 8-11-1.3, 8-11-1.4, 8-11-1.6,
8-11-1.7, 8-11-5, 8-11-23, 8-11-24, and 11-74.3-6 as follows:
(65 ILCS 5/8-4-1) (from Ch. 24, par. 8-4-1)
Sec. 8-4-1. No bonds shall be issued by the corporate
authorities of any municipality until the question of
authorizing such bonds has been submitted to the electors of
that municipality provided that notice of the bond referendum,
if held before July 1, 1999, has been given in accordance with
the provisions of Section 12-5 of the Election Code in effect
at the time of the bond referendum, at least 10 and not more
than 45 days before the date of the election, notwithstanding
the time for publication otherwise imposed by Section 12-5,
and approved by a majority of the electors voting upon that
question. Notices required in connection with the submission
of public questions on or after July 1, 1999 shall be as set
forth in Section 12-5 of the Election Code. The clerk shall

SB3019 Enrolled - 810 - LRB104 20255 HLH 33706 b
certify the proposition of the corporate authorities to the
proper election authority who shall submit the question at an
election in accordance with the general election law, subject
to the notice provisions set forth in this Section.
Notice of any such election shall contain the amount of
the bond issue, purpose for which issued, and maximum rate of
interest.
In addition to all other authority to issue bonds, the
Village of Indian Head Park is authorized to issue bonds for
the purpose of paying the costs of making roadway improvements
in an amount not to exceed the aggregate principal amount of
$2,500,000, provided that 60% of the votes cast at the general
primary election held on March 18, 2014 are cast in favor of
the issuance of the bonds, and the bonds are issued by December
31, 2014.
However, without the submission of the question of issuing
bonds to the electors, the corporate authorities of any
municipality may authorize the issuance of any of the
following bonds:
(1) Bonds to refund any existing bonded indebtedness;
(2) Bonds to fund or refund any existing judgment
indebtedness;
(3) In any municipality of less than 500,000
population, bonds to anticipate the collection of
installments of special assessments and special taxes
against property owned by the municipality and to

SB3019 Enrolled - 811 - LRB104 20255 HLH 33706 b
anticipate the collection of the amount apportioned to the
municipality as public benefits under Article 9;
(4) Bonds issued by any municipality under Sections
8-4-15 through 8-4-23, 11-23-1 through 11-23-12, 11-26-1
through 11-26-6, 11-71-1 through 11-71-10, 11-74.3-1
through 11-74.3-7, 11-74.4-1 through 11-74.4-11, 11-74.5-1
through 11-74.5-15, 11-94-1 through 11-94-7, 11-102-1
through 11-102-10, 11-103-11 through 11-103-15, 11-118-1
through 11-118-6, 11-119-1 through 11-119-5, 11-129-1
through 11-129-7, 11-133-1 through 11-133-4, 11-139-1
through 11-139-12, 11-141-1 through 11-141-18 of this
Code, or 10-801 through 10-808 of the Illinois Highway
Code;
(5) Bonds issued by the board of education of any
school district under the provisions of Sections 34-30
through 34-36 of the School Code;
(6) Bonds issued by any municipality under the
provisions of Division 6 of this Article 8; and by any
municipality under the provisions of Division 7 of this
Article 8; or under the provisions of Sections 11-121-4
and 11-121-5;
(7) Bonds to pay for the purchase of voting machines
by any municipality that has adopted Article 24 of the
Election Code;
(8) Bonds issued by any municipality under Sections 15
and 46 of the Environmental Protection Act;

SB3019 Enrolled - 812 - LRB104 20255 HLH 33706 b
(9) Bonds issued by the corporate authorities of any
municipality under the provisions of Section 8-4-25 of
this Article 8;
(10) Bonds issued under Section 8-4-26 of this Article
8 by any municipality having a board of election
commissioners;
(11) Bonds issued under the provisions of the Special
Service Area Tax Act (repealed);
(12) Bonds issued under Section 8-5-16 of this Code;
(13) Bonds to finance the cost of the acquisition,
construction, or improvement of water or wastewater
treatment facilities mandated by an enforceable compliance
schedule developed in connection with the federal Clean
Water Act or a compliance order issued by the United
States Environmental Protection Agency or the Illinois
Pollution Control Board; provided that such bonds are
authorized by an ordinance adopted by a three-fifths
majority of the corporate authorities of the municipality
issuing the bonds which ordinance shall specify that the
construction or improvement of such facilities is
necessary to alleviate an emergency condition in such
municipality;
(14) Bonds issued by any municipality pursuant to
Section 11-113.1-1;
(15) Bonds issued under Sections 11-74.6-1 through
11-74.6-45, the Industrial Jobs Recovery Law of this Code;

SB3019 Enrolled - 813 - LRB104 20255 HLH 33706 b
(16) Bonds issued under the Innovation Development and
Economy Act, except as may be required by Section 35 of
that Act.
(17) Bonds issued under the Statewide Innovation
Development and Economy Act, except as may be required by
Section 5-60 of that Act.
(Source: P.A. 102-587, eff. 1-1-22; 103-605, eff. 7-1-24.)
(65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax
Act. The corporate authorities of a home rule municipality may
impose a tax upon all persons engaged in the business of
selling tangible personal property, other than an item of
tangible personal property titled or registered with an agency
of this State's government, at retail in the municipality on
the gross receipts from these sales made in the course of such
business. If imposed, the tax shall only be imposed in 1/4%
increments. On and after September 1, 1991, this additional
tax may not be imposed on tangible personal property taxed at
the 1% rate under the Retailers' Occupation Tax Act (or at the
0% rate imposed under this amendatory Act of the 102nd General
Assembly). Beginning December 1, 2019, this tax is not imposed
on sales of aviation fuel unless the tax revenue is expended
for airport-related purposes. If a municipality does not have
an airport-related purpose to which it dedicates aviation fuel
tax revenue, then aviation fuel is excluded from the tax. Each

SB3019 Enrolled - 814 - LRB104 20255 HLH 33706 b
municipality must comply with the certification requirements
for airport-related purposes under Section 2-22 of the
Retailers' Occupation Tax Act. For purposes of this Section,
"airport-related purposes" has the meaning ascribed in Section
6z-20.2 of the State Finance Act. This exclusion for aviation
fuel only applies for so long as the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
municipality. The changes made to this Section by this
amendatory Act of the 101st General Assembly are a denial and
limitation of home rule powers and functions under subsection
(g) of Section 6 of Article VII of the Illinois Constitution.
The tax imposed by a home rule municipality under this Section
and all civil penalties that may be assessed as an incident of
the tax shall be collected and enforced by the State
Department of Revenue. The certificate of registration that is
issued by the Department to a retailer under the Retailers'
Occupation Tax Act shall permit the retailer to engage in a
business that is taxable under any ordinance or resolution
enacted pursuant to this Section without registering
separately with the Department under such ordinance or
resolution or under this Section. The Department shall have
full power to administer and enforce this Section; to collect
all taxes and penalties due hereunder; to dispose of taxes and
penalties so collected in the manner hereinafter provided; and
to determine all rights to credit memoranda arising on account
of the erroneous payment of tax or penalty hereunder. In the

SB3019 Enrolled - 815 - LRB104 20255 HLH 33706 b
administration of, and compliance with, this Section the
Department and persons who are subject to this Section shall
have the same rights, remedies, privileges, immunities, powers
and duties, and be subject to the same conditions,
restrictions, limitations, penalties and definitions of terms,
and employ the same modes of procedure, as are prescribed in
Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65
(in respect to all provisions therein other than the State
rate of tax), 2c, 3 (except as to the disposition of taxes and
penalties collected, and except that the retailer's discount
is not allowed for taxes paid on aviation fuel that are subject
to the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j,
5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the
Retailers' Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act, as fully as if those provisions were
set forth herein.
No tax may be imposed by a home rule municipality under
this Section unless the municipality also imposes a tax at the
same rate under Section 8-11-5 of this Act.
If, on January 1, 2025, a unit of local government has in
effect a tax under this Section, or if, after January 1, 2025,
a unit of local government imposes a tax under this Section,
then that tax applies to leases of tangible personal property
in effect, entered into, or renewed on or after that date in
the same manner as the tax under this Section and in accordance

SB3019 Enrolled - 816 - LRB104 20255 HLH 33706 b
with the changes made by this amendatory Act of the 103rd
General Assembly.
Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
seller's tax liability hereunder by separately stating that
tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax which sellers
are required to collect under the Use Tax Act, pursuant to such
bracket schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the home rule municipal retailers' occupation
tax fund or the Local Government Aviation Trust Fund, as
appropriate.
Except as otherwise provided in this paragraph, the
Department shall immediately pay over to the State Treasurer,
ex officio, as trustee, all taxes and penalties collected
hereunder for deposit into the Home Rule Municipal Retailers'
Occupation Tax Fund. Taxes and penalties collected on aviation
fuel sold on or after December 1, 2019, shall be immediately
paid over by the Department to the State Treasurer, ex
officio, as trustee, for deposit into the Local Government

SB3019 Enrolled - 817 - LRB104 20255 HLH 33706 b
Aviation Trust Fund. The Department shall only pay moneys into
the Local Government Aviation Trust Fund under this Section
for so long as the revenue use requirements of 49 U.S.C.
47107(b) and 49 U.S.C. 47133 are binding on the State.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for
sales within a STAR bond district.
As soon as possible after the first day of each month,
beginning July 1, 2026, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Statewide
Innovation Development and Economy Act, collected under this
Section during the second preceding calendar month for sales
within a STAR bond district.
After the monthly transfers transfer to the STAR Bonds
Revenue Fund, on or before the 25th day of each calendar month,
the Department shall prepare and certify to the Comptroller
the disbursement of stated sums of money to named
municipalities, the municipalities to be those from which
retailers have paid taxes or penalties hereunder to the

SB3019 Enrolled - 818 - LRB104 20255 HLH 33706 b
Department during the second preceding calendar month. The
amount to be paid to each municipality shall be the amount (not
including credit memoranda and not including taxes and
penalties collected on aviation fuel sold on or after December
1, 2019) collected hereunder during the second preceding
calendar month by the Department plus an amount the Department
determines is necessary to offset any amounts that were
erroneously paid to a different taxing body, and not including
an amount equal to the amount of refunds made during the second
preceding calendar month by the Department on behalf of such
municipality, and not including any amount that the Department
determines is necessary to offset any amounts that were
payable to a different taxing body but were erroneously paid
to the municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund, less 1.5% of the
remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt by the
Comptroller of the disbursement certification to the
municipalities and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the

SB3019 Enrolled - 819 - LRB104 20255 HLH 33706 b
directions contained in the certification.
In addition to the disbursement required by the preceding
paragraph and in order to mitigate delays caused by
distribution procedures, an allocation shall, if requested, be
made within 10 days after January 14, 1991, and in November of
1991 and each year thereafter, to each municipality that
received more than $500,000 during the preceding fiscal year,
(July 1 through June 30) whether collected by the municipality
or disbursed by the Department as required by this Section.
Within 10 days after January 14, 1991, participating
municipalities shall notify the Department in writing of their
intent to participate. In addition, for the initial
distribution, participating municipalities shall certify to
the Department the amounts collected by the municipality for
each month under its home rule occupation and service
occupation tax during the period July 1, 1989 through June 30,
1990. The allocation within 10 days after January 14, 1991,
shall be in an amount equal to the monthly average of these
amounts, excluding the 2 months of highest receipts. The
monthly average for the period of July 1, 1990 through June 30,
1991 will be determined as follows: the amounts collected by
the municipality under its home rule occupation and service
occupation tax during the period of July 1, 1990 through
September 30, 1990, plus amounts collected by the Department
and paid to such municipality through June 30, 1991, excluding
the 2 months of highest receipts. The monthly average for each

SB3019 Enrolled - 820 - LRB104 20255 HLH 33706 b
subsequent period of July 1 through June 30 shall be an amount
equal to the monthly distribution made to each such
municipality under the preceding paragraph during this period,
excluding the 2 months of highest receipts. The distribution
made in November 1991 and each year thereafter under this
paragraph and the preceding paragraph shall be reduced by the
amount allocated and disbursed under this paragraph in the
preceding period of July 1 through June 30. The Department
shall prepare and certify to the Comptroller for disbursement
the allocations made in accordance with this paragraph.
For the purpose of determining the local governmental unit
whose tax is applicable, a retail sale by a producer of coal or
other mineral mined in Illinois is a sale at retail at the
place where the coal or other mineral mined in Illinois is
extracted from the earth. This paragraph does not apply to
coal or other mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the United States Constitution as a sale
in interstate or foreign commerce.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the Constitution of the United States
may not be made the subject of taxation by this State.
An ordinance or resolution imposing or discontinuing a tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department

SB3019 Enrolled - 821 - LRB104 20255 HLH 33706 b
on or before the first day of June, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of September next following the adoption and filing.
Beginning January 1, 1992, an ordinance or resolution imposing
or discontinuing the tax hereunder or effecting a change in
the rate thereof shall be adopted and a certified copy thereof
filed with the Department on or before the first day of July,
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of October next
following such adoption and filing. Beginning January 1, 1993,
an ordinance or resolution imposing or discontinuing the tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of October, whereupon the
Department shall proceed to administer and enforce this
Section as of the first day of January next following the
adoption and filing. However, a municipality located in a
county with a population in excess of 3,000,000 that elected
to become a home rule unit at the general primary election in
1994 may adopt an ordinance or resolution imposing the tax
under this Section and file a certified copy of the ordinance
or resolution with the Department on or before July 1, 1994.
The Department shall then proceed to administer and enforce
this Section as of October 1, 1994. Beginning April 1, 1998, an
ordinance or resolution imposing or discontinuing the tax
hereunder or effecting a change in the rate thereof shall

SB3019 Enrolled - 822 - LRB104 20255 HLH 33706 b
either (i) be adopted and a certified copy thereof filed with
the Department on or before the first day of April, whereupon
the Department shall proceed to administer and enforce this
Section as of the first day of July next following the adoption
and filing; or (ii) be adopted and a certified copy thereof
filed with the Department on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce this Section as of the first day of January next
following the adoption and filing.
When certifying the amount of a monthly disbursement to a
municipality under this Section, the Department shall increase
or decrease the amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous
6 months from the time a misallocation is discovered.
Any unobligated balance remaining in the Municipal
Retailers' Occupation Tax Fund on December 31, 1989, which
fund was abolished by Public Act 85-1135, and all receipts of
municipal tax as a result of audits of liability periods prior
to January 1, 1990, shall be paid into the Local Government Tax
Fund for distribution as provided by this Section prior to the
enactment of Public Act 85-1135. All receipts of municipal tax
as a result of an assessment not arising from an audit, for
liability periods prior to January 1, 1990, shall be paid into
the Local Government Tax Fund for distribution before July 1,
1990, as provided by this Section prior to the enactment of

SB3019 Enrolled - 823 - LRB104 20255 HLH 33706 b
Public Act 85-1135; and on and after July 1, 1990, all such
receipts shall be distributed as provided in Section 6z-18 of
the State Finance Act.
As used in this Section, "municipal" and "municipality"
means a city, village or incorporated town, including an
incorporated town that has superseded a civil township.
This Section shall be known and may be cited as the Home
Rule Municipal Retailers' Occupation Tax Act.
(Source: P.A. 102-700, eff. 4-19-22; 103-592, eff. 1-1-25.)
(65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
Sec. 8-11-1.3. Non-Home Rule Municipal Retailers'
Occupation Tax Act. The corporate authorities of a non-home
rule municipality may impose, by ordinance or resolution
adopted in the manner described in Section 8-11-1.1, a tax
upon all persons engaged in the business of selling tangible
personal property, other than on an item of tangible personal
property which is titled and registered by an agency of this
State's Government, at retail in the municipality. If imposed,
the tax shall be imposed on the gross receipts from such sales
made in the course of such business. The proceeds of the tax
may be used for public infrastructure or for property tax
relief or both, as defined in Section 8-11-1.2. If the tax is
approved by referendum on or after July 14, 2010 (the
effective date of Public Act 96-1057) and before August 5,
2024 (the effective date of Public Act 103-781), the corporate

SB3019 Enrolled - 824 - LRB104 20255 HLH 33706 b
authorities of the non-home rule municipality may, until
January 1, 2031, use the proceeds of the tax for expenditure on
municipal operations, in addition to or in lieu of any
expenditure on public infrastructure or for property tax
relief. If the tax is approved by an ordinance or resolution
adopted on or after August 5, 2024 (the effective date of
Public Act 103-781), the corporate authorities of the non-home
rule municipality may, until January 1, 2031, use the proceeds
of the tax for expenditure on municipal operations, in
addition to or in lieu of any expenditure on public
infrastructure or for property tax relief. The tax imposed may
not be more than 1% and may be imposed only in 1/4% increments.
The tax may not be imposed on tangible personal property taxed
at the 1% rate under the Retailers' Occupation Tax Act (or at
the 0% rate imposed under this amendatory Act of the 102nd
General Assembly). Beginning December 1, 2019, this tax is not
imposed on sales of aviation fuel unless the tax revenue is
expended for airport-related purposes. If a municipality does
not have an airport-related purpose to which it dedicates
aviation fuel tax revenue, then aviation fuel is excluded from
the tax. Each municipality must comply with the certification
requirements for airport-related purposes under Section 2-22
of the Retailers' Occupation Tax Act. For purposes of this
Section, "airport-related purposes" has the meaning ascribed
in Section 6z-20.2 of the State Finance Act. This exclusion
for aviation fuel only applies for so long as the revenue use

SB3019 Enrolled - 825 - LRB104 20255 HLH 33706 b
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the municipality. The tax imposed by a municipality
pursuant to this Section and all civil penalties that may be
assessed as an incident thereof shall be collected and
enforced by the State Department of Revenue. The certificate
of registration which is issued by the Department to a
retailer under the Retailers' Occupation Tax Act shall permit
such retailer to engage in a business which is taxable under
any ordinance or resolution enacted pursuant to this Section
without registering separately with the Department under such
ordinance or resolution or under this Section. The Department
shall have full power to administer and enforce this Section;
to collect all taxes and penalties due hereunder; to dispose
of taxes and penalties so collected in the manner hereinafter
provided, and to determine all rights to credit memoranda,
arising on account of the erroneous payment of tax or penalty
hereunder. In the administration of, and compliance with, this
Section, the Department and persons who are subject to this
Section shall have the same rights, remedies, privileges,
immunities, powers and duties, and be subject to the same
conditions, restrictions, limitations, penalties and
definitions of terms, and employ the same modes of procedure,
as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j,
2 through 2-65 (in respect to all provisions therein other
than the State rate of tax), 2c, 3 (except as to the
disposition of taxes and penalties collected, and except that

SB3019 Enrolled - 826 - LRB104 20255 HLH 33706 b
the retailer's discount is not allowed for taxes paid on
aviation fuel that are subject to the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c,
5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9,
10, 11, 12 and 13 of the Retailers' Occupation Tax Act and
Section 3-7 of the Uniform Penalty and Interest Act as fully as
if those provisions were set forth herein.
No municipality may impose a tax under this Section unless
the municipality also imposes a tax at the same rate under
Section 8-11-1.4 of this Code.
If, on January 1, 2025, a unit of local government has in
effect a tax under this Section, or if, after January 1, 2025,
a unit of local government imposes a tax under this Section,
then that tax applies to leases of tangible personal property
in effect, entered into, or renewed on or after that date in
the same manner as the tax under this Section and in accordance
with the changes made by this amendatory Act of the 103rd
General Assembly.
Persons subject to any tax imposed pursuant to the
authority granted in this Section may reimburse themselves for
their seller's tax liability hereunder by separately stating
such tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax which sellers
are required to collect under the Use Tax Act, pursuant to such
bracket schedules as the Department may prescribe.
Whenever the Department determines that a refund should be

SB3019 Enrolled - 827 - LRB104 20255 HLH 33706 b
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in such
notification from the Department. Such refund shall be paid by
the State Treasurer out of the non-home rule municipal
retailers' occupation tax fund or the Local Government
Aviation Trust Fund, as appropriate.
Except as otherwise provided, the Department shall
forthwith pay over to the State Treasurer, ex officio, as
trustee, all taxes and penalties collected hereunder for
deposit into the Non-Home Rule Municipal Retailers' Occupation
Tax Fund. Taxes and penalties collected on aviation fuel sold
on or after December 1, 2019, shall be immediately paid over by
the Department to the State Treasurer, ex officio, as trustee,
for deposit into the Local Government Aviation Trust Fund. The
Department shall only pay moneys into the Local Government
Aviation Trust Fund under this Section for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the municipality.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under

SB3019 Enrolled - 828 - LRB104 20255 HLH 33706 b
this Section during the second preceding calendar month for
sales within a STAR bond district.
As soon as possible after the first day of each month,
beginning July 1, 2026, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Statewide
Innovation Development and Economy Act, collected under this
Section during the second preceding calendar month for sales
within a STAR bond district.
After the monthly transfers transfer to the STAR Bonds
Revenue Fund, on or before the 25th day of each calendar month,
the Department shall prepare and certify to the Comptroller
the disbursement of stated sums of money to named
municipalities, the municipalities to be those from which
retailers have paid taxes or penalties hereunder to the
Department during the second preceding calendar month. The
amount to be paid to each municipality shall be the amount (not
including credit memoranda and not including taxes and
penalties collected on aviation fuel sold on or after December
1, 2019) collected hereunder during the second preceding
calendar month by the Department plus an amount the Department
determines is necessary to offset any amounts which were
erroneously paid to a different taxing body, and not including
an amount equal to the amount of refunds made during the second
preceding calendar month by the Department on behalf of such

SB3019 Enrolled - 829 - LRB104 20255 HLH 33706 b
municipality, and not including any amount which the
Department determines is necessary to offset any amounts which
were payable to a different taxing body but were erroneously
paid to the municipality, and not including any amounts that
are transferred to the STAR Bonds Revenue Fund, less 1.5% of
the remainder, which the Department shall transfer into the
Tax Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt, by the
Comptroller, of the disbursement certification to the
municipalities and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in such certification.
For the purpose of determining the local governmental unit
whose tax is applicable, a retail sale, by a producer of coal
or other mineral mined in Illinois, is a sale at retail at the
place where the coal or other mineral mined in Illinois is
extracted from the earth. This paragraph does not apply to
coal or other mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the Federal Constitution as a sale in
interstate or foreign commerce.

SB3019 Enrolled - 830 - LRB104 20255 HLH 33706 b
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the constitution of the United States
may not be made the subject of taxation by this State.
When certifying the amount of a monthly disbursement to a
municipality under this Section, the Department shall increase
or decrease such amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous
6 months from the time a misallocation is discovered.
The Department of Revenue shall implement Public Act
91-649 so as to collect the tax on and after January 1, 2002.
As used in this Section, "municipal" and "municipality"
mean a city, village, or incorporated town, including an
incorporated town which has superseded a civil township.
This Section shall be known and may be cited as the
Non-Home Rule Municipal Retailers' Occupation Tax Act.
(Source: P.A. 102-700, eff. 4-19-22; 103-592, eff. 1-1-25;
103-1055, eff. 12-20-24.)
(65 ILCS 5/8-11-1.4) (from Ch. 24, par. 8-11-1.4)
Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation
Tax Act. The corporate authorities of a non-home rule
municipality may impose, by ordinance or resolution adopted in
the manner described in Section 8-11-1.1, a tax upon all
persons engaged in the municipality in the business of making

SB3019 Enrolled - 831 - LRB104 20255 HLH 33706 b
sales of service. If imposed, the tax shall be imposed on the
selling price of all tangible personal property transferred by
such servicemen, either in the form of tangible personal
property or in the form of real estate, as an incident to a
sale of service. The proceeds of the tax may be used for public
infrastructure or for property tax relief or both, as defined
in Section 8-11-1.2. If the tax is approved by referendum on or
after July 14, 2010 (the effective date of Public Act 96-1057)
and before August 5, 2024 (the effective date of Public Act
103-781), the corporate authorities of a non-home rule
municipality may, until January 1, 2031, use the proceeds of
the tax for expenditure on municipal operations, in addition
to or in lieu of any expenditure on public infrastructure or
for property tax relief. If the tax is approved by an ordinance
or resolution adopted on or after August 5, 2024 (the
effective date of Public Act 103-781), the corporate
authorities of the non-home rule municipality may, until
January 1, 2031, use the proceeds of the tax for expenditure on
municipal operations, in addition to or in lieu of any
expenditure on public infrastructure or for property tax
relief. The tax imposed may not be more than 1% and may be
imposed only in 1/4% increments. The tax may not be imposed on
tangible personal property taxed at the 1% rate under the
Service Occupation Tax Act (or at the 0% rate imposed under
this amendatory Act of the 102nd General Assembly). Beginning
December 1, 2019, this tax is not imposed on sales of aviation

SB3019 Enrolled - 832 - LRB104 20255 HLH 33706 b
fuel unless the tax revenue is expended for airport-related
purposes. If a municipality does not have an airport-related
purpose to which it dedicates aviation fuel tax revenue, then
aviation fuel is excluded from the tax. Each municipality must
comply with the certification requirements for airport-related
purposes under Section 2-22 of the Retailers' Occupation Tax
Act. For purposes of this Section, "airport-related purposes"
has the meaning ascribed in Section 6z-20.2 of the State
Finance Act. This exclusion for aviation fuel only applies for
so long as the revenue use requirements of 49 U.S.C. 47107(b)
and 49 U.S.C. 47133 are binding on the municipality. The tax
imposed by a municipality pursuant to this Section and all
civil penalties that may be assessed as an incident thereof
shall be collected and enforced by the State Department of
Revenue. The certificate of registration which is issued by
the Department to a retailer under the Retailers' Occupation
Tax Act or under the Service Occupation Tax Act shall permit
such registrant to engage in a business which is taxable under
any ordinance or resolution enacted pursuant to this Section
without registering separately with the Department under such
ordinance or resolution or under this Section. The Department
shall have full power to administer and enforce this Section;
to collect all taxes and penalties due hereunder; to dispose
of taxes and penalties so collected in the manner hereinafter
provided, and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty

SB3019 Enrolled - 833 - LRB104 20255 HLH 33706 b
hereunder. In the administration of, and compliance with, this
Section the Department and persons who are subject to this
Section shall have the same rights, remedies, privileges,
immunities, powers and duties, and be subject to the same
conditions, restrictions, limitations, penalties and
definitions of terms, and employ the same modes of procedure,
as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in
respect to all provisions therein other than the State rate of
tax), 4 (except that the reference to the State shall be to the
taxing municipality), 5, 7, 8 (except that the jurisdiction to
which the tax shall be a debt to the extent indicated in that
Section 8 shall be the taxing municipality), 9 (except as to
the disposition of taxes and penalties collected, and except
that the returned merchandise credit for this municipal tax
may not be taken against any State tax, and except that the
retailer's discount is not allowed for taxes paid on aviation
fuel that are subject to the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133), 10, 11, 12 (except the
reference therein to Section 2b of the Retailers' Occupation
Tax Act), 13 (except that any reference to the State shall mean
the taxing municipality), the first paragraph of Section 15,
16, 17, 18, 19 and 20 of the Service Occupation Tax Act and
Section 3-7 of the Uniform Penalty and Interest Act, as fully
as if those provisions were set forth herein.
No municipality may impose a tax under this Section unless
the municipality also imposes a tax at the same rate under

SB3019 Enrolled - 834 - LRB104 20255 HLH 33706 b
Section 8-11-1.3 of this Code.
If, on January 1, 2025, a unit of local government has in
effect a tax under this Section, or if, after January 1, 2025,
a unit of local government imposes a tax under this Section,
then that tax applies to leases of tangible personal property
in effect, entered into, or renewed on or after that date in
the same manner as the tax under this Section and in accordance
with the changes made by this amendatory Act of the 103rd
General Assembly.
Persons subject to any tax imposed pursuant to the
authority granted in this Section may reimburse themselves for
their serviceman's tax liability hereunder by separately
stating such tax as an additional charge, which charge may be
stated in combination, in a single amount, with State tax
which servicemen are authorized to collect under the Service
Use Tax Act, pursuant to such bracket schedules as the
Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in such
notification from the Department. Such refund shall be paid by
the State Treasurer out of the municipal retailers' occupation
tax fund or the Local Government Aviation Trust Fund, as
appropriate.

SB3019 Enrolled - 835 - LRB104 20255 HLH 33706 b
Except as otherwise provided in this paragraph, the
Department shall forthwith pay over to the State Treasurer, ex
officio, as trustee, all taxes and penalties collected
hereunder for deposit into the municipal retailers' occupation
tax fund. Taxes and penalties collected on aviation fuel sold
on or after December 1, 2019, shall be immediately paid over by
the Department to the State Treasurer, ex officio, as trustee,
for deposit into the Local Government Aviation Trust Fund. The
Department shall only pay moneys into the Local Government
Aviation Trust Fund under this Section for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the municipality.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for
sales within a STAR bond district.
As soon as possible after the first day of each month,
beginning July 1, 2026, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Statewide
Innovation Development and Economy Act, collected under this

SB3019 Enrolled - 836 - LRB104 20255 HLH 33706 b
Section during the second preceding calendar month for sales
within a STAR bond district.
After the monthly transfers transfer to the STAR Bonds
Revenue Fund, on or before the 25th day of each calendar month,
the Department shall prepare and certify to the Comptroller
the disbursement of stated sums of money to named
municipalities, the municipalities to be those from which
suppliers and servicemen have paid taxes or penalties
hereunder to the Department during the second preceding
calendar month. The amount to be paid to each municipality
shall be the amount (not including credit memoranda and not
including taxes and penalties collected on aviation fuel sold
on or after December 1, 2019) collected hereunder during the
second preceding calendar month by the Department, and not
including an amount equal to the amount of refunds made during
the second preceding calendar month by the Department on
behalf of such municipality, and not including any amounts
that are transferred to the STAR Bonds Revenue Fund, less 1.5%
of the remainder, which the Department shall transfer into the
Tax Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt, by the
Comptroller, of the disbursement certification to the
municipalities, the General Revenue Fund, and the Tax

SB3019 Enrolled - 837 - LRB104 20255 HLH 33706 b
Compliance and Administration Fund provided for in this
Section to be given to the Comptroller by the Department, the
Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with the directions contained
in such certification.
The Department of Revenue shall implement Public Act
91-649 so as to collect the tax on and after January 1, 2002.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the constitution of the United States
may not be made the subject of taxation by this State.
As used in this Section, "municipal" or "municipality"
means or refers to a city, village or incorporated town,
including an incorporated town which has superseded a civil
township.
This Section shall be known and may be cited as the
"Non-Home Rule Municipal Service Occupation Tax Act".
(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23;
103-592, eff. 1-1-25; 103-1055, eff. 12-20-24.)
(65 ILCS 5/8-11-1.6)
Sec. 8-11-1.6. Non-home rule municipal retailers'
occupation tax; municipalities between 20,000 and 25,000. The
corporate authorities of a non-home rule municipality with a
population of more than 20,000 but less than 25,000 that has,
prior to January 1, 1987, established a Redevelopment Project

SB3019 Enrolled - 838 - LRB104 20255 HLH 33706 b
Area that has been certified as a State Sales Tax Boundary and
has issued bonds or otherwise incurred indebtedness to pay for
costs in excess of $5,000,000, which is secured in part by a
tax increment allocation fund, in accordance with the
provisions of Division 11-74.4 of this Code may, by passage of
an ordinance, impose a tax upon all persons engaged in the
business of selling tangible personal property, other than on
an item of tangible personal property that is titled and
registered by an agency of this State's Government, at retail
in the municipality. This tax may not be imposed on tangible
personal property taxed at the 1% rate under the Retailers'
Occupation Tax Act (or at the 0% rate imposed under this
amendatory Act of the 102nd General Assembly). Beginning
December 1, 2019, this tax is not imposed on sales of aviation
fuel unless the tax revenue is expended for airport-related
purposes. If a municipality does not have an airport-related
purpose to which it dedicates aviation fuel tax revenue, then
aviation fuel is excluded from the tax. Each municipality must
comply with the certification requirements for airport-related
purposes under Section 2-22 of the Retailers' Occupation Tax
Act. For purposes of this Section, "airport-related purposes"
has the meaning ascribed in Section 6z-20.2 of the State
Finance Act. This exclusion for aviation fuel only applies for
so long as the revenue use requirements of 49 U.S.C. 47107(b)
and 49 U.S.C. 47133 are binding on the municipality. If
imposed, the tax shall only be imposed in .25% increments of

SB3019 Enrolled - 839 - LRB104 20255 HLH 33706 b
the gross receipts from such sales made in the course of
business. Any tax imposed by a municipality under this Section
and all civil penalties that may be assessed as an incident
thereof shall be collected and enforced by the State
Department of Revenue. An ordinance imposing a tax hereunder
or effecting a change in the rate thereof shall be adopted and
a certified copy thereof filed with the Department on or
before the first day of October, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of January next following such adoption and filing.
The certificate of registration that is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act shall permit the retailer to engage in a business that is
taxable under any ordinance or resolution enacted under this
Section without registering separately with the Department
under the ordinance or resolution or under this Section. The
Department shall have full power to administer and enforce
this Section, to collect all taxes and penalties due
hereunder, to dispose of taxes and penalties so collected in
the manner hereinafter provided, and to determine all rights
to credit memoranda, arising on account of the erroneous
payment of tax or penalty hereunder. In the administration of,
and compliance with this Section, the Department and persons
who are subject to this Section shall have the same rights,
remedies, privileges, immunities, powers, and duties, and be
subject to the same conditions, restrictions, limitations,

SB3019 Enrolled - 840 - LRB104 20255 HLH 33706 b
penalties, and definitions of terms, and employ the same modes
of procedure, as are prescribed in Sections 1, 1a, 1a-1, 1d,
1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
therein other than the State rate of tax), 2c, 3 (except as to
the disposition of taxes and penalties collected, and except
that the retailer's discount is not allowed for taxes paid on
aviation fuel that are subject to the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c,
5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9,
10, 11, 12 and 13 of the Retailers' Occupation Tax Act and
Section 3-7 of the Uniform Penalty and Interest Act as fully as
if those provisions were set forth herein.
A tax may not be imposed by a municipality under this
Section unless the municipality also imposes a tax at the same
rate under Section 8-11-1.7 of this Act.
If, on January 1, 2025, a unit of local government has in
effect a tax under this Section, or if, after January 1, 2025,
a unit of local government imposes a tax under this Section,
then that tax applies to leases of tangible personal property
in effect, entered into, or renewed on or after that date in
the same manner as the tax under this Section and in accordance
with the changes made by this amendatory Act of the 103rd
General Assembly.
Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
seller's tax liability hereunder by separately stating the tax

SB3019 Enrolled - 841 - LRB104 20255 HLH 33706 b
as an additional charge, which charge may be stated in
combination, in a single amount, with State tax which sellers
are required to collect under the Use Tax Act, pursuant to such
bracket schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant, instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Non-Home Rule Municipal Retailers'
Occupation Tax Fund, which is hereby created or the Local
Government Aviation Trust Fund, as appropriate.
Except as otherwise provided in this paragraph, the
Department shall forthwith pay over to the State Treasurer, ex
officio, as trustee, all taxes and penalties collected
hereunder for deposit into the Non-Home Rule Municipal
Retailers' Occupation Tax Fund. Taxes and penalties collected
on aviation fuel sold on or after December 1, 2019, shall be
immediately paid over by the Department to the State
Treasurer, ex officio, as trustee, for deposit into the Local
Government Aviation Trust Fund. The Department shall only pay
moneys into the Local Government Aviation Trust Fund under
this Section for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
municipality.

SB3019 Enrolled - 842 - LRB104 20255 HLH 33706 b
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for
sales within a STAR bond district.
As soon as possible after the first day of each month,
beginning July 1, 2026, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Statewide
Innovation Development and Economy Act, collected under this
Section during the second preceding calendar month for sales
within a STAR bond district.
After the monthly transfers transfer to the STAR Bonds
Revenue Fund, on or before the 25th day of each calendar month,
the Department shall prepare and certify to the Comptroller
the disbursement of stated sums of money to named
municipalities, the municipalities to be those from which
retailers have paid taxes or penalties hereunder to the
Department during the second preceding calendar month. The
amount to be paid to each municipality shall be the amount (not
including credit memoranda and not including taxes and
penalties collected on aviation fuel sold on or after December

SB3019 Enrolled - 843 - LRB104 20255 HLH 33706 b
1, 2019) collected hereunder during the second preceding
calendar month by the Department plus an amount the Department
determines is necessary to offset any amounts that were
erroneously paid to a different taxing body, and not including
an amount equal to the amount of refunds made during the second
preceding calendar month by the Department on behalf of the
municipality, and not including any amount that the Department
determines is necessary to offset any amounts that were
payable to a different taxing body but were erroneously paid
to the municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund, less 1.5% of the
remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt by the
Comptroller of the disbursement certification to the
municipalities and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in the certification.
For the purpose of determining the local governmental unit
whose tax is applicable, a retail sale by a producer of coal or
other mineral mined in Illinois is a sale at retail at the

SB3019 Enrolled - 844 - LRB104 20255 HLH 33706 b
place where the coal or other mineral mined in Illinois is
extracted from the earth. This paragraph does not apply to
coal or other mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the federal Constitution as a sale in
interstate or foreign commerce.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the constitution of the United States
may not be made the subject of taxation by this State.
When certifying the amount of a monthly disbursement to a
municipality under this Section, the Department shall increase
or decrease the amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous
6 months from the time a misallocation is discovered.
As used in this Section, "municipal" and "municipality"
means a city, village, or incorporated town, including an
incorporated town that has superseded a civil township.
(Source: P.A. 102-700, eff. 4-19-22; 103-592, eff. 1-1-25.)
(65 ILCS 5/8-11-1.7)
Sec. 8-11-1.7. Non-home rule municipal service occupation
tax; municipalities between 20,000 and 25,000. The corporate
authorities of a non-home rule municipality with a population
of more than 20,000 but less than 25,000 as determined by the

SB3019 Enrolled - 845 - LRB104 20255 HLH 33706 b
last preceding decennial census that has, prior to January 1,
1987, established a Redevelopment Project Area that has been
certified as a State Sales Tax Boundary and has issued bonds or
otherwise incurred indebtedness to pay for costs in excess of
$5,000,000, which is secured in part by a tax increment
allocation fund, in accordance with the provisions of Division
11-74.4 of this Code may, by passage of an ordinance, impose a
tax upon all persons engaged in the municipality in the
business of making sales of service. If imposed, the tax shall
only be imposed in .25% increments of the selling price of all
tangible personal property transferred by such servicemen
either in the form of tangible personal property or in the form
of real estate as an incident to a sale of service. This tax
may not be imposed on tangible personal property taxed at the
1% rate under the Service Occupation Tax Act (or at the 0% rate
imposed under this amendatory Act of the 102nd General
Assembly). Beginning December 1, 2019, this tax is not imposed
on sales of aviation fuel unless the tax revenue is expended
for airport-related purposes. If a municipality does not have
an airport-related purpose to which it dedicates aviation fuel
tax revenue, then aviation fuel is excluded from the tax. Each
municipality must comply with the certification requirements
for airport-related purposes under Section 2-22 of the
Retailers' Occupation Tax Act. For purposes of this Section,
"airport-related purposes" has the meaning ascribed in Section
6z-20.2 of the State Finance Act. This exclusion for aviation

SB3019 Enrolled - 846 - LRB104 20255 HLH 33706 b
fuel only applies for so long as the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
municipality. The tax imposed by a municipality under this
Section and all civil penalties that may be assessed as an
incident thereof shall be collected and enforced by the State
Department of Revenue. An ordinance imposing a tax hereunder
or effecting a change in the rate thereof shall be adopted and
a certified copy thereof filed with the Department on or
before the first day of October, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of January next following such adoption and filing.
The certificate of registration that is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act or under the Service Occupation Tax Act shall permit the
registrant to engage in a business that is taxable under any
ordinance or resolution enacted under this Section without
registering separately with the Department under the ordinance
or resolution or under this Section. The Department shall have
full power to administer and enforce this Section, to collect
all taxes and penalties due hereunder, to dispose of taxes and
penalties so collected in a manner hereinafter provided, and
to determine all rights to credit memoranda arising on account
of the erroneous payment of tax or penalty hereunder. In the
administration of and compliance with this Section, the
Department and persons who are subject to this Section shall
have the same rights, remedies, privileges, immunities,

SB3019 Enrolled - 847 - LRB104 20255 HLH 33706 b
powers, and duties, and be subject to the same conditions,
restrictions, limitations, penalties and definitions of terms,
and employ the same modes of procedure, as are prescribed in
Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to all
provisions therein other than the State rate of tax), 4
(except that the reference to the State shall be to the taxing
municipality), 5, 7, 8 (except that the jurisdiction to which
the tax shall be a debt to the extent indicated in that Section
8 shall be the taxing municipality), 9 (except as to the
disposition of taxes and penalties collected, and except that
the returned merchandise credit for this municipal tax may not
be taken against any State tax, and except that the retailer's
discount is not allowed for taxes paid on aviation fuel that
are subject to the revenue use requirements of 49 U.S.C.
47107(b) and 49 U.S.C. 47133), 10, 11, 12, (except the
reference therein to Section 2b of the Retailers' Occupation
Tax Act), 13 (except that any reference to the State shall mean
the taxing municipality), the first paragraph of Sections 15,
16, 17, 18, 19, and 20 of the Service Occupation Tax Act and
Section 3-7 of the Uniform Penalty and Interest Act, as fully
as if those provisions were set forth herein.
A tax may not be imposed by a municipality under this
Section unless the municipality also imposes a tax at the same
rate under Section 8-11-1.6 of this Act.
If, on January 1, 2025, a unit of local government has in
effect a tax under this Section, or if, after January 1, 2025,

SB3019 Enrolled - 848 - LRB104 20255 HLH 33706 b
a unit of local government imposes a tax under this Section,
then that tax applies to leases of tangible personal property
in effect, entered into, or renewed on or after that date in
the same manner as the tax under this Section and in accordance
with the changes made by this amendatory Act of the 103rd
General Assembly.
Person subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
servicemen's tax liability hereunder by separately stating the
tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax that
servicemen are authorized to collect under the Service Use Tax
Act, under such bracket schedules as the Department may
prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in such
notification from the Department. The refund shall be paid by
the State Treasurer out of the Non-Home Rule Municipal
Retailers' Occupation Tax Fund or the Local Government
Aviation Trust Fund, as appropriate.
Except as otherwise provided in this paragraph, the
Department shall forthwith pay over to the State Treasurer, ex
officio, as trustee, all taxes and penalties collected

SB3019 Enrolled - 849 - LRB104 20255 HLH 33706 b
hereunder for deposit into the Non-Home Rule Municipal
Retailers' Occupation Tax Fund. Taxes and penalties collected
on aviation fuel sold on or after December 1, 2019, shall be
immediately paid over by the Department to the State
Treasurer, ex officio, as trustee, for deposit into the Local
Government Aviation Trust Fund. The Department shall only pay
moneys into the Local Government Aviation Trust Fund under
this Section for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
Municipality.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for
sales within a STAR bond district.
As soon as possible after the first day of each month,
beginning July 1, 2026, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Statewide
Innovation Development and Economy Act, collected under this
Section during the second preceding calendar month for sales
within a STAR bond district.

SB3019 Enrolled - 850 - LRB104 20255 HLH 33706 b
After the monthly transfers transfer to the STAR Bonds
Revenue Fund, on or before the 25th day of each calendar month,
the Department shall prepare and certify to the Comptroller
the disbursement of stated sums of money to named
municipalities, the municipalities to be those from which
suppliers and servicemen have paid taxes or penalties
hereunder to the Department during the second preceding
calendar month. The amount to be paid to each municipality
shall be the amount (not including credit memoranda and not
including taxes and penalties collected on aviation fuel sold
on or after December 1, 2019) collected hereunder during the
second preceding calendar month by the Department, and not
including an amount equal to the amount of refunds made during
the second preceding calendar month by the Department on
behalf of such municipality, and not including any amounts
that are transferred to the STAR Bonds Revenue Fund, less 1.5%
of the remainder, which the Department shall transfer into the
Tax Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt by the
Comptroller of the disbursement certification to the
municipalities, the Tax Compliance and Administration Fund,
and the General Revenue Fund, provided for in this Section to
be given to the Comptroller by the Department, the Comptroller

SB3019 Enrolled - 851 - LRB104 20255 HLH 33706 b
shall cause the orders to be drawn for the respective amounts
in accordance with the directions contained in the
certification.
When certifying the amount of a monthly disbursement to a
municipality under this Section, the Department shall increase
or decrease the amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous
6 months from the time a misallocation is discovered.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the constitution of the United States
may not be made the subject of taxation by this State.
(Source: P.A. 102-700, eff. 4-19-22; 103-592, eff. 1-1-25.)
(65 ILCS 5/8-11-5) (from Ch. 24, par. 8-11-5)
Sec. 8-11-5. Home Rule Municipal Service Occupation Tax
Act. The corporate authorities of a home rule municipality may
impose a tax upon all persons engaged, in such municipality,
in the business of making sales of service at the same rate of
tax imposed pursuant to Section 8-11-1, of the selling price
of all tangible personal property transferred by such
servicemen either in the form of tangible personal property or
in the form of real estate as an incident to a sale of service.
If imposed, such tax shall only be imposed in 1/4% increments.
On and after September 1, 1991, this additional tax may not be

SB3019 Enrolled - 852 - LRB104 20255 HLH 33706 b
imposed on tangible personal property taxed at the 1% rate
under the Service Occupation Tax Act (or at the 0% rate imposed
under this amendatory Act of the 102nd General Assembly).
Beginning December 1, 2019, this tax may not be imposed on
sales of aviation fuel unless the tax revenue is expended for
airport-related purposes. If a municipality does not have an
airport-related purpose to which it dedicates aviation fuel
tax revenue, then aviation fuel shall be excluded from tax.
Each municipality must comply with the certification
requirements for airport-related purposes under Section 2-22
of the Retailers' Occupation Tax Act. For purposes of this
Section, "airport-related purposes" has the meaning ascribed
in Section 6z-20.2 of the State Finance Act. This exception
for aviation fuel only applies for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State. The changes made to this Section by this
amendatory Act of the 101st General Assembly are a denial and
limitation of home rule powers and functions under subsection
(g) of Section 6 of Article VII of the Illinois Constitution.
The tax imposed by a home rule municipality pursuant to this
Section and all civil penalties that may be assessed as an
incident thereof shall be collected and enforced by the State
Department of Revenue. The certificate of registration which
is issued by the Department to a retailer under the Retailers'
Occupation Tax Act or under the Service Occupation Tax Act
shall permit such registrant to engage in a business which is

SB3019 Enrolled - 853 - LRB104 20255 HLH 33706 b
taxable under any ordinance or resolution enacted pursuant to
this Section without registering separately with the
Department under such ordinance or resolution or under this
Section. The Department shall have full power to administer
and enforce this Section; to collect all taxes and penalties
due hereunder; to dispose of taxes and penalties so collected
in the manner hereinafter provided, and to determine all
rights to credit memoranda arising on account of the erroneous
payment of tax or penalty hereunder. In the administration of,
and compliance with, this Section the Department and persons
who are subject to this Section shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties and definitions of terms, and employ the same modes
of procedure, as are prescribed in Sections 1a-1, 2, 2a, 3
through 3-50 (in respect to all provisions therein other than
the State rate of tax), 4 (except that the reference to the
State shall be to the taxing municipality), 5, 7, 8 (except
that the jurisdiction to which the tax shall be a debt to the
extent indicated in that Section 8 shall be the taxing
municipality), 9 (except as to the disposition of taxes and
penalties collected, and except that the returned merchandise
credit for this municipal tax may not be taken against any
State tax, and except that the retailer's discount is not
allowed for taxes paid on aviation fuel that are subject to the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.

SB3019 Enrolled - 854 - LRB104 20255 HLH 33706 b
47133), 10, 11, 12 (except the reference therein to Section 2b
of the Retailers' Occupation Tax Act), 13 (except that any
reference to the State shall mean the taxing municipality),
the first paragraph of Section 15, 16, 17 (except that credit
memoranda issued hereunder may not be used to discharge any
State tax liability), 18, 19 and 20 of the Service Occupation
Tax Act and Section 3-7 of the Uniform Penalty and Interest
Act, as fully as if those provisions were set forth herein.
No tax may be imposed by a home rule municipality pursuant
to this Section unless such municipality also imposes a tax at
the same rate pursuant to Section 8-11-1 of this Act.
Persons subject to any tax imposed pursuant to the
authority granted in this Section may reimburse themselves for
their serviceman's tax liability hereunder by separately
stating such tax as an additional charge, which charge may be
stated in combination, in a single amount, with State tax
which servicemen are authorized to collect under the Service
Use Tax Act, pursuant to such bracket schedules as the
Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in such
notification from the Department. Such refund shall be paid by
the State Treasurer out of the home rule municipal retailers'

SB3019 Enrolled - 855 - LRB104 20255 HLH 33706 b
occupation tax fund or the Local Government Aviation Trust
Fund, as appropriate.
Except as otherwise provided in this paragraph, the
Department shall forthwith pay over to the State Treasurer, ex
officio, as trustee, all taxes and penalties collected
hereunder for deposit into the Home Rule Municipal Retailers'
Occupation Tax Fund. Taxes and penalties collected on aviation
fuel sold on or after December 1, 2019, shall be immediately
paid over by the Department to the State Treasurer, ex
officio, as trustee, for deposit into the Local Government
Aviation Trust Fund. The Department shall only pay moneys into
the Local Government Aviation Trust Fund under this Section
for so long as the revenue use requirements of 49 U.S.C.
47107(b) and 49 U.S.C. 47133 are binding on the municipality.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for
sales within a STAR bond district.
As soon as possible after the first day of each month,
beginning July 1, 2026, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the

SB3019 Enrolled - 856 - LRB104 20255 HLH 33706 b
local sales tax increment, as defined in the Statewide
Innovation Development and Economy Act, collected under this
Section during the second preceding calendar month for sales
within a STAR bond district.
After the monthly transfers transfer to the STAR Bonds
Revenue Fund, on or before the 25th day of each calendar month,
the Department shall prepare and certify to the Comptroller
the disbursement of stated sums of money to named
municipalities, the municipalities to be those from which
suppliers and servicemen have paid taxes or penalties
hereunder to the Department during the second preceding
calendar month. The amount to be paid to each municipality
shall be the amount (not including credit memoranda and not
including taxes and penalties collected on aviation fuel sold
on or after December 1, 2019) collected hereunder during the
second preceding calendar month by the Department, and not
including an amount equal to the amount of refunds made during
the second preceding calendar month by the Department on
behalf of such municipality, and not including any amounts
that are transferred to the STAR Bonds Revenue Fund, less 1.5%
of the remainder, which the Department shall transfer into the
Tax Compliance and Administration Fund. The Department, at the
time of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt, by the

SB3019 Enrolled - 857 - LRB104 20255 HLH 33706 b
Comptroller, of the disbursement certification to the
municipalities and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in such certification.
In addition to the disbursement required by the preceding
paragraph and in order to mitigate delays caused by
distribution procedures, an allocation shall, if requested, be
made within 10 days after January 14, 1991, and in November of
1991 and each year thereafter, to each municipality that
received more than $500,000 during the preceding fiscal year,
(July 1 through June 30) whether collected by the municipality
or disbursed by the Department as required by this Section.
Within 10 days after January 14, 1991, participating
municipalities shall notify the Department in writing of their
intent to participate. In addition, for the initial
distribution, participating municipalities shall certify to
the Department the amounts collected by the municipality for
each month under its home rule occupation and service
occupation tax during the period July 1, 1989 through June 30,
1990. The allocation within 10 days after January 14, 1991,
shall be in an amount equal to the monthly average of these
amounts, excluding the 2 months of highest receipts. Monthly
average for the period of July 1, 1990 through June 30, 1991
will be determined as follows: the amounts collected by the

SB3019 Enrolled - 858 - LRB104 20255 HLH 33706 b
municipality under its home rule occupation and service
occupation tax during the period of July 1, 1990 through
September 30, 1990, plus amounts collected by the Department
and paid to such municipality through June 30, 1991, excluding
the 2 months of highest receipts. The monthly average for each
subsequent period of July 1 through June 30 shall be an amount
equal to the monthly distribution made to each such
municipality under the preceding paragraph during this period,
excluding the 2 months of highest receipts. The distribution
made in November 1991 and each year thereafter under this
paragraph and the preceding paragraph shall be reduced by the
amount allocated and disbursed under this paragraph in the
preceding period of July 1 through June 30. The Department
shall prepare and certify to the Comptroller for disbursement
the allocations made in accordance with this paragraph.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the constitution of the United States
may not be made the subject of taxation by this State.
An ordinance or resolution imposing or discontinuing a tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of June, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of September next following such adoption and
filing. Beginning January 1, 1992, an ordinance or resolution

SB3019 Enrolled - 859 - LRB104 20255 HLH 33706 b
imposing or discontinuing the tax hereunder or effecting a
change in the rate thereof shall be adopted and a certified
copy thereof filed with the Department on or before the first
day of July, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of
October next following such adoption and filing. Beginning
January 1, 1993, an ordinance or resolution imposing or
discontinuing the tax hereunder or effecting a change in the
rate thereof shall be adopted and a certified copy thereof
filed with the Department on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce this Section as of the first day of January next
following such adoption and filing. However, a municipality
located in a county with a population in excess of 3,000,000
that elected to become a home rule unit at the general primary
election in 1994 may adopt an ordinance or resolution imposing
the tax under this Section and file a certified copy of the
ordinance or resolution with the Department on or before July
1, 1994. The Department shall then proceed to administer and
enforce this Section as of October 1, 1994. Beginning April 1,
1998, an ordinance or resolution imposing or discontinuing the
tax hereunder or effecting a change in the rate thereof shall
either (i) be adopted and a certified copy thereof filed with
the Department on or before the first day of April, whereupon
the Department shall proceed to administer and enforce this
Section as of the first day of July next following the adoption

SB3019 Enrolled - 860 - LRB104 20255 HLH 33706 b
and filing; or (ii) be adopted and a certified copy thereof
filed with the Department on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce this Section as of the first day of January next
following the adoption and filing.
Any unobligated balance remaining in the Municipal
Retailers' Occupation Tax Fund on December 31, 1989, which
fund was abolished by Public Act 85-1135, and all receipts of
municipal tax as a result of audits of liability periods prior
to January 1, 1990, shall be paid into the Local Government Tax
Fund, for distribution as provided by this Section prior to
the enactment of Public Act 85-1135. All receipts of municipal
tax as a result of an assessment not arising from an audit, for
liability periods prior to January 1, 1990, shall be paid into
the Local Government Tax Fund for distribution before July 1,
1990, as provided by this Section prior to the enactment of
Public Act 85-1135, and on and after July 1, 1990, all such
receipts shall be distributed as provided in Section 6z-18 of
the State Finance Act.
As used in this Section, "municipal" and "municipality"
means a city, village or incorporated town, including an
incorporated town which has superseded a civil township.
This Section shall be known and may be cited as the Home
Rule Municipal Service Occupation Tax Act.
(Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19;
101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)

SB3019 Enrolled - 861 - LRB104 20255 HLH 33706 b
(65 ILCS 5/8-11-23)
Sec. 8-11-23. Municipal Cannabis Retailers' Occupation Tax
Law.
(a) This Section may be referred to as the Municipal
Cannabis Retailers' Occupation Tax Law. The corporate
authorities of any municipality may, by ordinance, impose a
tax upon all persons engaged in the business of selling
cannabis, other than cannabis purchased under the
Compassionate Use of Medical Cannabis Program Act, at retail
in the municipality on the gross receipts from these sales
made in the course of that business. If imposed, the tax may
not exceed 3% of the gross receipts from these sales and shall
only be imposed in 1/4% increments. The tax imposed under this
Section and all civil penalties that may be assessed as an
incident of the tax shall be collected and enforced by the
Department of Revenue. The Department of Revenue shall have
full power to administer and enforce this Section; to collect
all taxes and penalties due hereunder; to dispose of taxes and
penalties so collected in the manner hereinafter provided; and
to determine all rights to credit memoranda arising on account
of the erroneous payment of tax or penalty under this Section.
In the administration of and compliance with this Section, the
Department and persons who are subject to this Section shall
have the same rights, remedies, privileges, immunities, powers
and duties, and be subject to the same conditions,

SB3019 Enrolled - 862 - LRB104 20255 HLH 33706 b
restrictions, limitations, penalties and definitions of terms,
and employ the same modes of procedure, as are prescribed in
Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65
(in respect to all provisions therein other than the State
rate of tax), 2a, 2b, 2c, 2i, 3 (except as to the disposition
of taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e,
5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11,
11a, 12, and 13 of the Retailers' Occupation Tax Act and
Section 3-7 of the Uniform Penalty and Interest Act, as fully
as if those provisions were set forth herein.
(b) Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
seller's tax liability hereunder by separately stating that
tax as an additional charge, which charge may be stated in
combination, in a single amount, with any State tax that
sellers are required to collect.
(c) Whenever the Department of Revenue determines that a
refund should be made under this Section to a claimant instead
of issuing a credit memorandum, the Department of Revenue
shall notify the State Comptroller, who shall cause the order
to be drawn for the amount specified and to the person named in
the notification from the Department of Revenue.
(d) Except as otherwise provided in this Section, the The
Department of Revenue shall immediately pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties
collected hereunder for deposit into the Local Cannabis

SB3019 Enrolled - 863 - LRB104 20255 HLH 33706 b
Retailers' Occupation Tax Trust Fund.
As soon as possible after the first day of each month,
beginning July 1, 2026, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Statewide
Innovation Development and Economy Act, collected under this
Section during the second preceding calendar month for sales
within a STAR bond district.
(e) After the monthly transfer to the STAR Bonds Revenue
Fund, on On or before the 25th day of each calendar month, the
Department of Revenue shall prepare and certify to the
Comptroller the amount of money to be disbursed from the Local
Cannabis Retailers' Occupation Tax Trust Fund to
municipalities from which retailers have paid taxes or
penalties under this Section during the second preceding
calendar month. The amount to be paid to each municipality
shall be the amount (not including credit memoranda) collected
under this Section from sales made in the municipality during
the second preceding calendar month, plus an amount the
Department of Revenue determines is necessary to offset any
amounts that were erroneously paid to a different taxing body,
and not including an amount equal to the amount of refunds made
during the second preceding calendar month by the Department
on behalf of such municipality, and not including any amount
that the Department determines is necessary to offset any

SB3019 Enrolled - 864 - LRB104 20255 HLH 33706 b
amounts that were payable to a different taxing body but were
erroneously paid to the municipality, and not including any
amounts that are transferred to the STAR Bonds Revenue Fund,
less 1.5% of the remainder, which the Department shall
transfer into the Tax Compliance and Administration Fund. The
Department, at the time of each monthly disbursement to the
municipalities, shall prepare and certify to the State
Comptroller the amount to be transferred into the Tax
Compliance and Administration Fund under this Section. Within
10 days after receipt by the Comptroller of the disbursement
certification to the municipalities and the Tax Compliance and
Administration Fund provided for in this Section to be given
to the Comptroller by the Department, the Comptroller shall
cause the orders to be drawn for the respective amounts in
accordance with the directions contained in the certification.
(f) An ordinance or resolution imposing or discontinuing a
tax under this Section or effecting a change in the rate
thereof that is adopted on or after June 25, 2019 (the
effective date of Public Act 101-27) and for which a certified
copy is filed with the Department on or before April 1, 2020
shall be administered and enforced by the Department beginning
on July 1, 2020. For ordinances filed with the Department
after April 1, 2020, an ordinance or resolution imposing or
discontinuing a tax under this Section or effecting a change
in the rate thereof shall either (i) be adopted and a certified
copy thereof filed with the Department on or before the first

SB3019 Enrolled - 865 - LRB104 20255 HLH 33706 b
day of April, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of July
next following the adoption and filing; or (ii) be adopted and
a certified copy thereof filed with the Department on or
before the first day of October, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of January next following the adoption and filing.
(Source: P.A. 101-27, eff. 6-25-19; 101-593, eff. 12-4-19.)
(65 ILCS 5/8-11-24)
Sec. 8-11-24. Municipal Grocery Occupation Tax Law.
(a) The corporate authorities of any municipality may, by
ordinance or resolution that takes effect on or after January
1, 2026, impose a tax upon all persons engaged in the business
of selling groceries at retail in the municipality on the
gross receipts from those sales made in the course of that
business. If imposed, the tax shall be at the rate of 1% of the
gross receipts from these sales.
The tax imposed by a municipality under this subsection
and all civil penalties that may be assessed as an incident of
the tax shall be collected and enforced by the Department. The
certificate of registration that is issued by the Department
to a retailer under the Retailers' Occupation Tax Act shall
permit the retailer to engage in a business that is taxable
under any ordinance or resolution enacted under this
subsection without registering separately with the Department

SB3019 Enrolled - 866 - LRB104 20255 HLH 33706 b
under that ordinance or resolution or under this subsection.
The Department shall have full power to administer and
enforce this subsection; to collect all taxes and penalties
due under this subsection; to dispose of taxes and penalties
so collected in the manner provided in this Section and under
rules adopted by the Department; and to determine all rights
to credit memoranda arising on account of the erroneous
payment of tax or penalty under this subsection.
In the administration of, and compliance with, this
subsection, the Department and persons who are subject to this
subsection shall have the same rights, remedies, privileges,
immunities, powers, and duties, and be subject to the same
conditions, restrictions, limitations, penalties and
definitions of terms, and employ the same modes of procedure,
as are prescribed in Sections 1, 2 through 2-65 (in respect to
all provisions therein other than the State rate of tax and
other than the exemption for food for human consumption that
is to be consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, candy, and food that has been
prepared for immediate consumption), which is authorized to be
taxed as provided in this subsection), 2c, 3 (except as to the
disposition of taxes and penalties collected), 4, 5, 5a, 5b,
5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11,
11a, 12 and 13 of the Retailers' Occupation Tax Act and all of
the Uniform Penalty and Interest Act, as fully as if those

SB3019 Enrolled - 867 - LRB104 20255 HLH 33706 b
provisions were set forth in this Section.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
seller's tax liability hereunder by separately stating that
tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax which sellers
are required to collect under the Use Tax Act, pursuant to such
bracket schedules as the Department may prescribe.
(b) If a tax has been imposed under subsection (a), then a
service occupation tax must also be imposed at the same rate
upon all persons engaged, in the municipality, in the business
of making sales of service, who, as an incident to making those
sales of service, transfer groceries, as defined in this
Section, as an incident to a sale of service.
The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the Department. The certificate of
registration that is issued by the Department to a retailer
under the Retailers' Occupation Tax Act or the Service
Occupation Tax Act shall permit the registrant to engage in a
business that is taxable under any ordinance or resolution
enacted pursuant to this subsection without registering
separately with the Department under the ordinance or
resolution or under this subsection.
The Department shall have full power to administer and
enforce this subsection, to collect all taxes and penalties

SB3019 Enrolled - 868 - LRB104 20255 HLH 33706 b
due under this subsection, to dispose of taxes and penalties
so collected in the manner provided in this Section and under
rules adopted by the Department, and to determine all rights
to credit memoranda arising on account of the erroneous
payment of a tax or penalty under this subsection.
In the administration of and compliance with this
subsection, the Department and persons who are subject to this
subsection shall have the same rights, remedies, privileges,
immunities, powers and duties, and be subject to the same
conditions, restrictions, limitations, penalties and
definitions of terms, and employ the same modes of procedure
as are set forth in Sections 2, 2c, 3 through 3-50 (in respect
to all provisions contained in those Sections other than (i)
the State rate of tax; (ii) the exemption for food for human
consumption that is to be consumed off the premises where it is
sold (other than alcoholic beverages, food consisting of or
infused with adult use cannabis, soft drinks, candy, and food
that has been prepared for immediate consumption), which is
authorized to be taxed as provided in this subsection; and
(iii) the exemption for food prepared for immediate
consumption and transferred incident to a sale of service
subject to the Service Occupation Tax Act or the Service Use
Tax Act by an entity licensed under the Hospital Licensing
Act, the Nursing Home Care Act, the Assisted Living and Shared
Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
Specialized Mental Health Rehabilitation Act of 2013, or the

SB3019 Enrolled - 869 - LRB104 20255 HLH 33706 b
Child Care Act of 1969, or an entity that holds a permit issued
pursuant to the Life Care Facilities Act, which is authorized
to be taxed as provided in this subsection), 4, 5, 7, 8, 9
(except as to the disposition of taxes and penalties
collected), 10, 11, 12, 13, 15, 16, 17, 18, 19, and 20 of the
Service Occupation Tax Act and all provisions of the Uniform
Penalty and Interest Act, as fully as if those provisions were
set forth in this Section.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability by separately stating the tax as an
additional charge, which may be stated in combination, in a
single amount, with State tax that servicemen are authorized
to collect under the Service Use Tax Act, pursuant to any
bracketed schedules set forth by the Department.
(c) The Department shall immediately pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties
collected under this Section. Those taxes and penalties shall
be deposited into the Municipal Grocery Tax Trust Fund, a
trust fund created in the State treasury. Except as otherwise
provided in this Section, moneys in the Municipal Grocery Tax
Trust Fund shall be used to make payments to municipalities
and for the payment of refunds under this Section.
Moneys deposited into the Municipal Grocery Tax Trust Fund
under this Section are not subject to appropriation and shall
be used as provided in this Section. All deposits into the

SB3019 Enrolled - 870 - LRB104 20255 HLH 33706 b
Municipal Grocery Tax Trust Fund shall be held in the
Municipal Grocery Tax Trust Fund by the State Treasurer, ex
officio, as trustee separate and apart from all public moneys
or funds of this State.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Municipal Grocery Tax Trust Fund.
(d) As soon as possible after the first day of each month,
upon certification of the Department, the Comptroller shall
order transferred, and the Treasurer shall transfer, to the
STAR Bonds Revenue Fund the local sales tax increment, if any,
as defined in the Innovation Development and Economy Act,
collected under this Section.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred, and the Treasurer shall transfer, to
the STAR Bonds Revenue Fund the local sales tax increment, as
defined in the Statewide Innovation Development and Economy
Act, collected under this Section during the second preceding
calendar month for sales within a STAR bond district.
After the monthly transfers transfer to the STAR Bonds
Revenue Fund, if any, on or before the 25th day of each

SB3019 Enrolled - 871 - LRB104 20255 HLH 33706 b
calendar month, the Department shall prepare and certify to
the Comptroller the disbursement of stated sums of money to
named municipalities, the municipalities to be those from
which retailers have paid taxes or penalties under this
Section to the Department during the second preceding calendar
month. The amount to be paid to each municipality shall be the
amount (not including credit memoranda) collected under this
Section during the second preceding calendar month by the
Department plus an amount the Department determines is
necessary to offset any amounts that were erroneously paid to
a different taxing body, and not including an amount equal to
the amount of refunds made during the second preceding
calendar month by the Department on behalf of such
municipality, and not including any amount that the Department
determines is necessary to offset any amounts that were
payable to a different taxing body but were erroneously paid
to the municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund. Within 10 days
after receipt by the Comptroller of the disbursement
certification to the municipalities provided for in this
Section to be given to the Comptroller by the Department, the
Comptroller shall cause the orders to be drawn for the amounts
in accordance with the directions contained in the
certification.
(e) Nothing in this Section shall be construed to
authorize a municipality to impose a tax upon the privilege of

SB3019 Enrolled - 872 - LRB104 20255 HLH 33706 b
engaging in any business which under the Constitution of the
United States may not be made the subject of taxation by this
State.
(f) Except as otherwise provided in this subsection, an
ordinance or resolution imposing or discontinuing the tax
hereunder or effecting a change in the rate thereof shall
either (i) be adopted and a certified copy thereof filed with
the Department on or before the first day of April, whereupon
the Department shall proceed to administer and enforce this
Section as of the first day of July next following the adoption
and filing or (ii) be adopted and a certified copy thereof
filed with the Department on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce this Section as of the first day of January next
following the adoption and filing.
(g) When certifying the amount of a monthly disbursement
to a municipality under this Section, the Department shall
increase or decrease the amount by an amount necessary to
offset any misallocation of previous disbursements. The offset
amount shall be the amount erroneously disbursed within the
previous 6 months from the time a misallocation is discovered.
(h) As used in this Section, "Department" means the
Department of Revenue.
For purposes of the tax authorized to be imposed under
subsection (a), "groceries" has the same meaning as "food for
human consumption that is to be consumed off the premises

SB3019 Enrolled - 873 - LRB104 20255 HLH 33706 b
where it is sold (other than alcoholic beverages, food
consisting of or infused with adult use cannabis, soft drinks,
candy, and food that has been prepared for immediate
consumption)", as further defined in Section 2-10 of the
Retailers' Occupation Tax Act.
For purposes of the tax authorized to be imposed under
subsection (b), "groceries" has the same meaning as "food for
human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, food
consisting of or infused with adult use cannabis, soft drinks,
candy, and food that has been prepared for immediate
consumption)", as further defined in Section 3-10 of the
Service Occupation Tax Act. For purposes of the tax authorized
to be imposed under subsection (b), "groceries" also means
food prepared for immediate consumption and transferred
incident to a sale of service subject to the Service
Occupation Tax Act or the Service Use Tax Act by an entity
licensed under the Hospital Licensing Act, the Nursing Home
Care Act, the Assisted Living and Shared Housing Act, the
ID/DD Community Care Act, the MC/DD Act, the Specialized
Mental Health Rehabilitation Act of 2013, or the Child Care
Act of 1969, or an entity that holds a permit issued pursuant
to the Life Care Facilities Act.
(i) This Section may be referred to as the Municipal
Grocery Occupation Tax Law.
(Source: P.A. 103-781, eff. 8-5-24; 104-6, eff. 1-1-26.)

SB3019 Enrolled - 874 - LRB104 20255 HLH 33706 b
(65 ILCS 5/11-74.3-6)
Sec. 11-74.3-6. Business district revenue and obligations;
business district tax allocation fund.
(a) If the corporate authorities of a municipality have
approved a business district plan, have designated a business
district, and have elected to impose a tax by ordinance
pursuant to subsection (10) or (11) of Section 11-74.3-3, then
each year after the date of the approval of the ordinance but
terminating upon the date all business district project costs
and all obligations paying or reimbursing business district
project costs, if any, have been paid, but in no event later
than the dissolution date, all amounts generated by the
retailers' occupation tax and service occupation tax shall be
collected and the tax shall be enforced by the Department of
Revenue in the same manner as all retailers' occupation taxes
and service occupation taxes imposed in the municipality
imposing the tax and all amounts generated by the hotel
operators' occupation tax shall be collected and the tax shall
be enforced by the municipality in the same manner as all hotel
operators' occupation taxes imposed in the municipality
imposing the tax. The corporate authorities of the
municipality shall deposit the proceeds of the taxes imposed
under subsections (10) and (11) of Section 11-74.3-3 into a
special fund of the municipality called the "[Name of]
Business District Tax Allocation Fund" for the purpose of

SB3019 Enrolled - 875 - LRB104 20255 HLH 33706 b
paying or reimbursing business district project costs and
obligations incurred in the payment of those costs.
(b) The corporate authorities of a municipality that has
designated a business district under this Law may, by
ordinance, impose a Business District Retailers' Occupation
Tax upon all persons engaged in the business of selling
tangible personal property, other than an item of tangible
personal property titled or registered with an agency of this
State's government, at retail in the business district at a
rate not to exceed 1% of the gross receipts from the sales made
in the course of such business, to be imposed only in 0.25%
increments. The tax may not be imposed on tangible personal
property taxed at the rate of 1% under the Retailers'
Occupation Tax Act (or at the 0% rate imposed under this
amendatory Act of the 102nd General Assembly). Beginning
December 1, 2019 and through December 31, 2020, this tax is not
imposed on sales of aviation fuel unless the tax revenue is
expended for airport-related purposes. If the District does
not have an airport-related purpose to which it dedicates
aviation fuel tax revenue, then aviation fuel is excluded from
the tax. Each municipality must comply with the certification
requirements for airport-related purposes under Section 2-22
of the Retailers' Occupation Tax Act. For purposes of this
Section, "airport-related purposes" has the meaning ascribed
in Section 6z-20.2 of the State Finance Act. Beginning January
1, 2021, this tax is not imposed on sales of aviation fuel for

SB3019 Enrolled - 876 - LRB104 20255 HLH 33706 b
so long as the revenue use requirements of 49 U.S.C. 47107(b)
and 49 U.S.C. 47133 are binding on the District.
The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the Department of Revenue. The
certificate of registration that is issued by the Department
to a retailer under the Retailers' Occupation Tax Act shall
permit the retailer to engage in a business that is taxable
under any ordinance or resolution enacted pursuant to this
subsection without registering separately with the Department
under such ordinance or resolution or under this subsection.
The Department of Revenue shall have full power to administer
and enforce this subsection; to collect all taxes and
penalties due under this subsection in the manner hereinafter
provided; and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty
under this subsection. In the administration of, and
compliance with, this subsection, the Department and persons
who are subject to this subsection shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions, and definitions of terms
and employ the same modes of procedure, as are prescribed in
Sections 1, 1a through 1o, 2 through 2-65 (in respect to all
provisions therein other than the State rate of tax), 2c
through 2h, 3 (except as to the disposition of taxes and

SB3019 Enrolled - 877 - LRB104 20255 HLH 33706 b
penalties collected, and except that the retailer's discount
is not allowed for taxes paid on aviation fuel that are subject
to the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6,
6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13, and 14 of the Retailers'
Occupation Tax Act and all provisions of the Uniform Penalty
and Interest Act, as fully as if those provisions were set
forth herein.
Persons subject to any tax imposed under this subsection
may reimburse themselves for their seller's tax liability
under this subsection by separately stating the tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State taxes that sellers are required
to collect under the Use Tax Act, in accordance with such
bracket schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the business district retailers' occupation
tax fund or the Local Government Aviation Trust Fund, as
appropriate.
Except as otherwise provided in this paragraph, the
Department shall immediately pay over to the State Treasurer,

SB3019 Enrolled - 878 - LRB104 20255 HLH 33706 b
ex officio, as trustee, all taxes, penalties, and interest
collected under this subsection for deposit into the business
district retailers' occupation tax fund. Taxes and penalties
collected on aviation fuel sold on or after December 1, 2019,
shall be immediately paid over by the Department to the State
Treasurer, ex officio, as trustee, for deposit into the Local
Government Aviation Trust Fund. The Department shall only pay
moneys into the Local Government Aviation Trust Fund under
this Section for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
District.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this subsection during the second preceding calendar month for
sales within a STAR bond district.
As soon as possible after the first day of each month,
beginning July 1, 2026, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Statewide
Innovation Development and Economy Act, collected under this
Section during the second preceding calendar month for sales

SB3019 Enrolled - 879 - LRB104 20255 HLH 33706 b
within a STAR bond district.
After the monthly transfers transfer to the STAR Bonds
Revenue Fund, on or before the 25th day of each calendar month,
the Department shall prepare and certify to the Comptroller
the disbursement of stated sums of money to named
municipalities from the business district retailers'
occupation tax fund, the municipalities to be those from which
retailers have paid taxes or penalties under this subsection
to the Department during the second preceding calendar month.
The amount to be paid to each municipality shall be the amount
(not including credit memoranda and not including taxes and
penalties collected on aviation fuel sold on or after December
1, 2019) collected under this subsection during the second
preceding calendar month by the Department plus an amount the
Department determines is necessary to offset any amounts that
were erroneously paid to a different taxing body, and not
including an amount equal to the amount of refunds made during
the second preceding calendar month by the Department, less 2%
of that amount (except the amount collected on aviation fuel
sold on or after December 1, 2019), which shall be deposited
into the Tax Compliance and Administration Fund and shall be
used by the Department, subject to appropriation, to cover the
costs of the Department in administering and enforcing the
provisions of this subsection, on behalf of such municipality,
and not including any amount that the Department determines is
necessary to offset any amounts that were payable to a

SB3019 Enrolled - 880 - LRB104 20255 HLH 33706 b
different taxing body but were erroneously paid to the
municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund. Within 10 days
after receipt by the Comptroller of the disbursement
certification to the municipalities provided for in this
subsection to be given to the Comptroller by the Department,
the Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with the directions contained
in the certification. The proceeds of the tax paid to
municipalities under this subsection shall be deposited into
the Business District Tax Allocation Fund by the municipality.
An ordinance imposing or discontinuing the tax under this
subsection or effecting a change in the rate thereof shall
either (i) be adopted and a certified copy thereof filed with
the Department on or before the first day of April, whereupon
the Department, if all other requirements of this subsection
are met, shall proceed to administer and enforce this
subsection as of the first day of July next following the
adoption and filing; or (ii) be adopted and a certified copy
thereof filed with the Department on or before the first day of
October, whereupon, if all other requirements of this
subsection are met, the Department shall proceed to administer
and enforce this subsection as of the first day of January next
following the adoption and filing.
The Department of Revenue shall not administer or enforce
an ordinance imposing, discontinuing, or changing the rate of

SB3019 Enrolled - 881 - LRB104 20255 HLH 33706 b
the tax under this subsection, until the municipality also
provides, in the manner prescribed by the Department, the
boundaries of the business district and each address in the
business district in such a way that the Department can
determine by its address whether a business is located in the
business district. The municipality must provide this boundary
and address information to the Department on or before April 1
for administration and enforcement of the tax under this
subsection by the Department beginning on the following July 1
and on or before October 1 for administration and enforcement
of the tax under this subsection by the Department beginning
on the following January 1. The Department of Revenue shall
not administer or enforce any change made to the boundaries of
a business district or address change, addition, or deletion
until the municipality reports the boundary change or address
change, addition, or deletion to the Department in the manner
prescribed by the Department. The municipality must provide
this boundary change information or address change, addition,
or deletion to the Department on or before April 1 for
administration and enforcement by the Department of the change
beginning on the following July 1 and on or before October 1
for administration and enforcement by the Department of the
change beginning on the following January 1. The retailers in
the business district shall be responsible for charging the
tax imposed under this subsection. If a retailer is
incorrectly included or excluded from the list of those

SB3019 Enrolled - 882 - LRB104 20255 HLH 33706 b
required to collect the tax under this subsection, both the
Department of Revenue and the retailer shall be held harmless
if they reasonably relied on information provided by the
municipality.
A municipality that imposes the tax under this subsection
must submit to the Department of Revenue any other information
as the Department may require for the administration and
enforcement of the tax.
When certifying the amount of a monthly disbursement to a
municipality under this subsection, the Department shall
increase or decrease the amount by an amount necessary to
offset any misallocation of previous disbursements. The offset
amount shall be the amount erroneously disbursed within the
previous 6 months from the time a misallocation is discovered.
Nothing in this subsection shall be construed to authorize
the municipality to impose a tax upon the privilege of
engaging in any business which under the Constitution of the
United States may not be made the subject of taxation by this
State.
If a tax is imposed under this subsection (b), a tax shall
also be imposed under subsection (c) of this Section.
(c) If a tax has been imposed under subsection (b), a
Business District Service Occupation Tax shall also be imposed
upon all persons engaged, in the business district, in the
business of making sales of service, who, as an incident to
making those sales of service, transfer tangible personal

SB3019 Enrolled - 883 - LRB104 20255 HLH 33706 b
property within the business district, either in the form of
tangible personal property or in the form of real estate as an
incident to a sale of service. The tax shall be imposed at the
same rate as the tax imposed in subsection (b) and shall not
exceed 1% of the selling price of tangible personal property
so transferred within the business district, to be imposed
only in 0.25% increments. The tax may not be imposed on
tangible personal property taxed at the 1% rate under the
Service Occupation Tax Act (or at the 0% rate imposed under
this amendatory Act of the 102nd General Assembly). Beginning
December 1, 2019, this tax is not imposed on sales of aviation
fuel unless the tax revenue is expended for airport-related
purposes. If the District does not have an airport-related
purpose to which it dedicates aviation fuel tax revenue, then
aviation fuel is excluded from the tax. Each municipality must
comply with the certification requirements for airport-related
purposes under Section 2-22 of the Retailers' Occupation Tax
Act. For purposes of this Act, "airport-related purposes" has
the meaning ascribed in Section 6z-20.2 of the State Finance
Act. Beginning January 1, 2021, this tax is not imposed on
sales of aviation fuel for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the District.
The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the Department of Revenue. The

SB3019 Enrolled - 884 - LRB104 20255 HLH 33706 b
certificate of registration which is issued by the Department
to a retailer under the Retailers' Occupation Tax Act or under
the Service Occupation Tax Act shall permit such registrant to
engage in a business which is taxable under any ordinance or
resolution enacted pursuant to this subsection without
registering separately with the Department under such
ordinance or resolution or under this subsection. The
Department of Revenue shall have full power to administer and
enforce this subsection; to collect all taxes and penalties
due under this subsection; to dispose of taxes and penalties
so collected in the manner hereinafter provided; and to
determine all rights to credit memoranda arising on account of
the erroneous payment of tax or penalty under this subsection.
In the administration of, and compliance with this subsection,
the Department and persons who are subject to this subsection
shall have the same rights, remedies, privileges, immunities,
powers and duties, and be subject to the same conditions,
restrictions, limitations, penalties, exclusions, exemptions,
and definitions of terms and employ the same modes of
procedure as are prescribed in Sections 2, 2a through 2d, 3
through 3-50 (in respect to all provisions therein other than
the State rate of tax), 4 (except that the reference to the
State shall be to the business district), 5, 7, 8 (except that
the jurisdiction to which the tax shall be a debt to the extent
indicated in that Section 8 shall be the municipality), 9
(except as to the disposition of taxes and penalties

SB3019 Enrolled - 885 - LRB104 20255 HLH 33706 b
collected, and except that the returned merchandise credit for
this tax may not be taken against any State tax, and except
that the retailer's discount is not allowed for taxes paid on
aviation fuel that are subject to the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10, 11, 12 (except
the reference therein to Section 2b of the Retailers'
Occupation Tax Act), 13 (except that any reference to the
State shall mean the municipality), the first paragraph of
Section 15, and Sections 16, 17, 18, 19 and 20 of the Service
Occupation Tax Act and all provisions of the Uniform Penalty
and Interest Act, as fully as if those provisions were set
forth herein.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability hereunder by separately stating the
tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax that
servicemen are authorized to collect under the Service Use Tax
Act, in accordance with such bracket schedules as the
Department may prescribe.
Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in such
notification from the Department. Such refund shall be paid by

SB3019 Enrolled - 886 - LRB104 20255 HLH 33706 b
the State Treasurer out of the business district retailers'
occupation tax fund or the Local Government Aviation Trust
Fund, as appropriate.
Except as otherwise provided in this paragraph, the
Department shall forthwith pay over to the State Treasurer,
ex-officio, as trustee, all taxes, penalties, and interest
collected under this subsection for deposit into the business
district retailers' occupation tax fund. Taxes and penalties
collected on aviation fuel sold on or after December 1, 2019,
shall be immediately paid over by the Department to the State
Treasurer, ex officio, as trustee, for deposit into the Local
Government Aviation Trust Fund. The Department shall only pay
moneys into the Local Government Aviation Trust Fund under
this Section for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
District.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this subsection during the second preceding calendar month for
sales within a STAR bond district.
As soon as possible after the first day of each month,
beginning July 1, 2026, upon certification of the Department

SB3019 Enrolled - 887 - LRB104 20255 HLH 33706 b
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Statewide
Innovation Development and Economy Act, collected under this
Section during the second preceding calendar month for sales
within a STAR bond district.
After the monthly transfers transfer to the STAR Bonds
Revenue Fund, on or before the 25th day of each calendar month,
the Department shall prepare and certify to the Comptroller
the disbursement of stated sums of money to named
municipalities from the business district retailers'
occupation tax fund, the municipalities to be those from which
suppliers and servicemen have paid taxes or penalties under
this subsection to the Department during the second preceding
calendar month. The amount to be paid to each municipality
shall be the amount (not including credit memoranda and not
including taxes and penalties collected on aviation fuel sold
on or after December 1, 2019) collected under this subsection
during the second preceding calendar month by the Department,
less 2% of that amount (except the amount collected on
aviation fuel sold on or after December 1, 2019), which shall
be deposited into the Tax Compliance and Administration Fund
and shall be used by the Department, subject to appropriation,
to cover the costs of the Department in administering and
enforcing the provisions of this subsection, and not including
an amount equal to the amount of refunds made during the second

SB3019 Enrolled - 888 - LRB104 20255 HLH 33706 b
preceding calendar month by the Department on behalf of such
municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund. Within 10 days
after receipt, by the Comptroller, of the disbursement
certification to the municipalities, provided for in this
subsection to be given to the Comptroller by the Department,
the Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with the directions contained
in such certification. The proceeds of the tax paid to
municipalities under this subsection shall be deposited into
the Business District Tax Allocation Fund by the municipality.
An ordinance imposing or discontinuing the tax under this
subsection or effecting a change in the rate thereof shall
either (i) be adopted and a certified copy thereof filed with
the Department on or before the first day of April, whereupon
the Department, if all other requirements of this subsection
are met, shall proceed to administer and enforce this
subsection as of the first day of July next following the
adoption and filing; or (ii) be adopted and a certified copy
thereof filed with the Department on or before the first day of
October, whereupon, if all other conditions of this subsection
are met, the Department shall proceed to administer and
enforce this subsection as of the first day of January next
following the adoption and filing.
The Department of Revenue shall not administer or enforce
an ordinance imposing, discontinuing, or changing the rate of

SB3019 Enrolled - 889 - LRB104 20255 HLH 33706 b
the tax under this subsection, until the municipality also
provides, in the manner prescribed by the Department, the
boundaries of the business district in such a way that the
Department can determine by its address whether a business is
located in the business district. The municipality must
provide this boundary and address information to the
Department on or before April 1 for administration and
enforcement of the tax under this subsection by the Department
beginning on the following July 1 and on or before October 1
for administration and enforcement of the tax under this
subsection by the Department beginning on the following
January 1. The Department of Revenue shall not administer or
enforce any change made to the boundaries of a business
district or address change, addition, or deletion until the
municipality reports the boundary change or address change,
addition, or deletion to the Department in the manner
prescribed by the Department. The municipality must provide
this boundary change information or address change, addition,
or deletion to the Department on or before April 1 for
administration and enforcement by the Department of the change
beginning on the following July 1 and on or before October 1
for administration and enforcement by the Department of the
change beginning on the following January 1. The retailers in
the business district shall be responsible for charging the
tax imposed under this subsection. If a retailer is
incorrectly included or excluded from the list of those

SB3019 Enrolled - 890 - LRB104 20255 HLH 33706 b
required to collect the tax under this subsection, both the
Department of Revenue and the retailer shall be held harmless
if they reasonably relied on information provided by the
municipality.
A municipality that imposes the tax under this subsection
must submit to the Department of Revenue any other information
as the Department may require for the administration and
enforcement of the tax.
Nothing in this subsection shall be construed to authorize
the municipality to impose a tax upon the privilege of
engaging in any business which under the Constitution of the
United States may not be made the subject of taxation by the
State.
If a tax is imposed under this subsection (c), a tax shall
also be imposed under subsection (b) of this Section.
(c-5) If, on January 1, 2025, a unit of local government
has in effect a tax under this Section, or if, after January 1,
2025, a unit of local government imposes a tax under this
Section, then that tax applies to leases of tangible personal
property in effect, entered into, or renewed on or after that
date in the same manner as the tax under this Section and in
accordance with the changes made by this amendatory Act of the
103rd General Assembly.
(d) By ordinance, a municipality that has designated a
business district under this Law may impose an occupation tax
upon all persons engaged in the business district in the

SB3019 Enrolled - 891 - LRB104 20255 HLH 33706 b
business of renting, leasing, or letting rooms in a hotel, as
defined in the Hotel Operators' Occupation Tax Act, at a rate
not to exceed 1% of the gross rental receipts from the renting,
leasing, or letting of hotel rooms within the business
district, to be imposed only in 0.25% increments, excluding,
however, from gross rental receipts the proceeds of renting,
leasing, or letting to permanent residents of a hotel, as
defined in the Hotel Operators' Occupation Tax Act, and
proceeds from the tax imposed under subsection (c) of Section
13 of the Metropolitan Pier and Exposition Authority Act.
The tax imposed by the municipality under this subsection
and all civil penalties that may be assessed as an incident to
that tax shall be collected and enforced by the municipality
imposing the tax. The municipality shall have full power to
administer and enforce this subsection, to collect all taxes
and penalties due under this subsection, to dispose of taxes
and penalties so collected in the manner provided in this
subsection, and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty
under this subsection. In the administration of and compliance
with this subsection, the municipality and persons who are
subject to this subsection shall have the same rights,
remedies, privileges, immunities, powers, and duties, shall be
subject to the same conditions, restrictions, limitations,
penalties, and definitions of terms, and shall employ the same
modes of procedure as are employed with respect to a tax

SB3019 Enrolled - 892 - LRB104 20255 HLH 33706 b
adopted by the municipality under Section 8-3-14 of this Code.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
tax liability for that tax by separately stating that tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State taxes imposed under the Hotel
Operators' Occupation Tax Act, and with any other tax.
Nothing in this subsection shall be construed to authorize
a municipality to impose a tax upon the privilege of engaging
in any business which under the Constitution of the United
States may not be made the subject of taxation by this State.
The proceeds of the tax imposed under this subsection
shall be deposited into the Business District Tax Allocation
Fund.
(e) Obligations secured by the Business District Tax
Allocation Fund may be issued to provide for the payment or
reimbursement of business district project costs. Those
obligations, when so issued, shall be retired in the manner
provided in the ordinance authorizing the issuance of those
obligations by the receipts of taxes imposed pursuant to
subsections (10) and (11) of Section 11-74.3-3 and by other
revenue designated or pledged by the municipality. A
municipality may in the ordinance pledge, for any period of
time up to and including the dissolution date, all or any part
of the funds in and to be deposited in the Business District
Tax Allocation Fund to the payment of business district

SB3019 Enrolled - 893 - LRB104 20255 HLH 33706 b
project costs and obligations. Whenever a municipality pledges
all of the funds to the credit of a business district tax
allocation fund to secure obligations issued or to be issued
to pay or reimburse business district project costs, the
municipality may specifically provide that funds remaining to
the credit of such business district tax allocation fund after
the payment of such obligations shall be accounted for
annually and shall be deemed to be "surplus" funds, and such
"surplus" funds shall be expended by the municipality for any
business district project cost as approved in the business
district plan. Whenever a municipality pledges less than all
of the monies to the credit of a business district tax
allocation fund to secure obligations issued or to be issued
to pay or reimburse business district project costs, the
municipality shall provide that monies to the credit of the
business district tax allocation fund and not subject to such
pledge or otherwise encumbered or required for payment of
contractual obligations for specific business district project
costs shall be calculated annually and shall be deemed to be
"surplus" funds, and such "surplus" funds shall be expended by
the municipality for any business district project cost as
approved in the business district plan.
No obligation issued pursuant to this Law and secured by a
pledge of all or any portion of any revenues received or to be
received by the municipality from the imposition of taxes
pursuant to subsection (10) of Section 11-74.3-3, shall be

SB3019 Enrolled - 894 - LRB104 20255 HLH 33706 b
deemed to constitute an economic incentive agreement under
Section 8-11-20, notwithstanding the fact that such pledge
provides for the sharing, rebate, or payment of retailers'
occupation taxes or service occupation taxes imposed pursuant
to subsection (10) of Section 11-74.3-3 and received or to be
received by the municipality from the development or
redevelopment of properties in the business district.
Without limiting the foregoing in this Section, the
municipality may further secure obligations secured by the
business district tax allocation fund with a pledge, for a
period not greater than the term of the obligations and in any
case not longer than the dissolution date, of any part or any
combination of the following: (i) net revenues of all or part
of any business district project; (ii) taxes levied or imposed
by the municipality on any or all property in the
municipality, including, specifically, taxes levied or imposed
by the municipality in a special service area pursuant to the
Special Service Area Tax Law; (iii) the full faith and credit
of the municipality; (iv) a mortgage on part or all of the
business district project; or (v) any other taxes or
anticipated receipts that the municipality may lawfully
pledge.
Such obligations may be issued in one or more series, bear
such date or dates, become due at such time or times as therein
provided, but in any case not later than (i) 20 years after the
date of issue or (ii) the dissolution date, whichever is

SB3019 Enrolled - 895 - LRB104 20255 HLH 33706 b
earlier, bear interest payable at such intervals and at such
rate or rates as set forth therein, except as may be limited by
applicable law, which rate or rates may be fixed or variable,
be in such denominations, be in such form, either coupon,
registered, or book-entry, carry such conversion, registration
and exchange privileges, be subject to defeasance upon such
terms, have such rank or priority, be executed in such manner,
be payable in such medium or payment at such place or places
within or without the State, make provision for a corporate
trustee within or without the State with respect to such
obligations, prescribe the rights, powers, and duties thereof
to be exercised for the benefit of the municipality and the
benefit of the owners of such obligations, provide for the
holding in trust, investment, and use of moneys, funds, and
accounts held under an ordinance, provide for assignment of
and direct payment of the moneys to pay such obligations or to
be deposited into such funds or accounts directly to such
trustee, be subject to such terms of redemption with or
without premium, and be sold at such price, all as the
corporate authorities shall determine. No referendum approval
of the electors shall be required as a condition to the
issuance of obligations pursuant to this Law except as
provided in this Section.
In the event the municipality authorizes the issuance of
obligations pursuant to the authority of this Law secured by
the full faith and credit of the municipality, or pledges ad

SB3019 Enrolled - 896 - LRB104 20255 HLH 33706 b
valorem taxes pursuant to this subsection, which obligations
are other than obligations which may be issued under home rule
powers provided by Section 6 of Article VII of the Illinois
Constitution or which ad valorem taxes are other than ad
valorem taxes which may be pledged under home rule powers
provided by Section 6 of Article VII of the Illinois
Constitution or which are levied in a special service area
pursuant to the Special Service Area Tax Law, the ordinance
authorizing the issuance of those obligations or pledging
those taxes shall be published within 10 days after the
ordinance has been adopted, in a newspaper having a general
circulation within the municipality. The publication of the
ordinance shall be accompanied by a notice of (i) the specific
number of voters required to sign a petition requesting the
question of the issuance of the obligations or pledging such
ad valorem taxes to be submitted to the electors; (ii) the time
within which the petition must be filed; and (iii) the date of
the prospective referendum. The municipal clerk shall provide
a petition form to any individual requesting one.
If no petition is filed with the municipal clerk, as
hereinafter provided in this Section, within 21 days after the
publication of the ordinance, the ordinance shall be in
effect. However, if within that 21-day period a petition is
filed with the municipal clerk, signed by electors numbering
not less than 15% of the number of electors voting for the
mayor or president at the last general municipal election,

SB3019 Enrolled - 897 - LRB104 20255 HLH 33706 b
asking that the question of issuing obligations using full
faith and credit of the municipality as security for the cost
of paying or reimbursing business district project costs, or
of pledging such ad valorem taxes for the payment of those
obligations, or both, be submitted to the electors of the
municipality, the municipality shall not be authorized to
issue obligations of the municipality using the full faith and
credit of the municipality as security or pledging such ad
valorem taxes for the payment of those obligations, or both,
until the proposition has been submitted to and approved by a
majority of the voters voting on the proposition at a
regularly scheduled election. The municipality shall certify
the proposition to the proper election authorities for
submission in accordance with the general election law.
The ordinance authorizing the obligations may provide that
the obligations shall contain a recital that they are issued
pursuant to this Law, which recital shall be conclusive
evidence of their validity and of the regularity of their
issuance.
In the event the municipality authorizes issuance of
obligations pursuant to this Law secured by the full faith and
credit of the municipality, the ordinance authorizing the
obligations may provide for the levy and collection of a
direct annual tax upon all taxable property within the
municipality sufficient to pay the principal thereof and
interest thereon as it matures, which levy may be in addition

SB3019 Enrolled - 898 - LRB104 20255 HLH 33706 b
to and exclusive of the maximum of all other taxes authorized
to be levied by the municipality, which levy, however, shall
be abated to the extent that monies from other sources are
available for payment of the obligations and the municipality
certifies the amount of those monies available to the county
clerk.
A certified copy of the ordinance shall be filed with the
county clerk of each county in which any portion of the
municipality is situated, and shall constitute the authority
for the extension and collection of the taxes to be deposited
in the business district tax allocation fund.
A municipality may also issue its obligations to refund,
in whole or in part, obligations theretofore issued by the
municipality under the authority of this Law, whether at or
prior to maturity. However, the last maturity of the refunding
obligations shall not be expressed to mature later than the
dissolution date.
In the event a municipality issues obligations under home
rule powers or other legislative authority, the proceeds of
which are pledged to pay or reimburse business district
project costs, the municipality may, if it has followed the
procedures in conformance with this Law, retire those
obligations from funds in the business district tax allocation
fund in amounts and in such manner as if those obligations had
been issued pursuant to the provisions of this Law.
No obligations issued pursuant to this Law shall be

SB3019 Enrolled - 899 - LRB104 20255 HLH 33706 b
regarded as indebtedness of the municipality issuing those
obligations or any other taxing district for the purpose of
any limitation imposed by law.
Obligations issued pursuant to this Law shall not be
subject to the provisions of the Bond Authorization Act.
(f) When business district project costs, including,
without limitation, all obligations paying or reimbursing
business district project costs have been paid, any surplus
funds then remaining in the Business District Tax Allocation
Fund shall be distributed to the municipal treasurer for
deposit into the general corporate fund of the municipality.
Upon payment of all business district project costs and
retirement of all obligations paying or reimbursing business
district project costs, but in no event more than 23 years
after the date of adoption of the ordinance imposing taxes
pursuant to subsection (10) or (11) of Section 11-74.3-3, the
municipality shall adopt an ordinance immediately rescinding
the taxes imposed pursuant to subsection (10) or (11) of
Section 11-74.3-3.
(Source: P.A. 102-700, eff. 4-19-22; 103-592, eff. 1-1-25.)
Section 100-25. The Metro-East Park and Recreation
District Act is amended by changing Section 30 as follows:
(70 ILCS 1605/30)
Sec. 30. Taxes.

SB3019 Enrolled - 900 - LRB104 20255 HLH 33706 b
(a) The board shall impose a tax upon all persons engaged
in the business of selling tangible personal property, other
than personal property titled or registered with an agency of
this State's government, at retail in the District on the
gross receipts from the sales made in the course of business.
This tax shall be imposed only at the rate of one-tenth of one
per cent.
This additional tax may not be imposed on tangible
personal property taxed at the 1% rate under the Retailers'
Occupation Tax Act (or at the 0% rate imposed under this
amendatory Act of the 102nd General Assembly). Beginning
December 1, 2019 and through December 31, 2020, this tax is not
imposed on sales of aviation fuel unless the tax revenue is
expended for airport-related purposes. If the District does
not have an airport-related purpose to which it dedicates
aviation fuel tax revenue, then aviation fuel shall be
excluded from tax. The board must comply with the
certification requirements for airport-related purposes under
Section 2-22 of the Retailers' Occupation Tax Act. For
purposes of this Act, "airport-related purposes" has the
meaning ascribed in Section 6z-20.2 of the State Finance Act.
Beginning January 1, 2021, this tax is not imposed on sales of
aviation fuel for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
District. The tax imposed by the Board under this Section and
all civil penalties that may be assessed as an incident of the

SB3019 Enrolled - 901 - LRB104 20255 HLH 33706 b
tax shall be collected and enforced by the Department of
Revenue. The certificate of registration that is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act shall permit the retailer to engage in a business that is
taxable without registering separately with the Department
under an ordinance or resolution under this Section. The
Department has full power to administer and enforce this
Section, to collect all taxes and penalties due under this
Section, to dispose of taxes and penalties so collected in the
manner provided in this Section, and to determine all rights
to credit memoranda arising on account of the erroneous
payment of a tax or penalty under this Section. In the
administration of and compliance with this Section, the
Department and persons who are subject to this Section shall
(i) have the same rights, remedies, privileges, immunities,
powers, and duties, (ii) be subject to the same conditions,
restrictions, limitations, penalties, and definitions of
terms, and (iii) employ the same modes of procedure as are
prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m,
1n, 2, 2-5, 2-5.5, 2-10 (in respect to all provisions
contained in those Sections other than the State rate of tax),
2-12, 2-15 through 2-70, 2a, 2b, 2c, 3 (except provisions
relating to transaction returns and quarter monthly payments,
and except that the retailer's discount is not allowed for
taxes paid on aviation fuel that are subject to the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5,

SB3019 Enrolled - 902 - LRB104 20255 HLH 33706 b
5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c,
6d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers'
Occupation Tax Act and the Uniform Penalty and Interest Act as
if those provisions were set forth in this Section.
Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
sellers' tax liability by separately stating the tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State tax which sellers are required
to collect under the Use Tax Act, pursuant to such bracketed
schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the State Metro-East Park and Recreation
District Fund or the Local Government Aviation Trust Fund, as
appropriate.
(b) If a tax has been imposed under subsection (a), a
service occupation tax shall also be imposed at the same rate
upon all persons engaged, in the District, in the business of
making sales of service, who, as an incident to making those
sales of service, transfer tangible personal property within
the District as an incident to a sale of service. This tax may

SB3019 Enrolled - 903 - LRB104 20255 HLH 33706 b
not be imposed on tangible personal property taxed at the 1%
rate under the Service Occupation Tax Act (or at the 0% rate
imposed under this amendatory Act of the 102nd General
Assembly). Beginning December 1, 2019 and through December 31,
2020, this tax may not be imposed on sales of aviation fuel
unless the tax revenue is expended for airport-related
purposes. If the District does not have an airport-related
purpose to which it dedicates aviation fuel tax revenue, then
aviation fuel shall be excluded from tax. The board must
comply with the certification requirements for airport-related
purposes under Section 2-22 of the Retailers' Occupation Tax
Act. For purposes of this Act, "airport-related purposes" has
the meaning ascribed in Section 6z-20.2 of the State Finance
Act. Beginning January 1, 2021, this tax is not imposed on
sales of aviation fuel for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the District. The tax imposed under this subsection
and all civil penalties that may be assessed as an incident
thereof shall be collected and enforced by the Department of
Revenue. The Department has full power to administer and
enforce this subsection; to collect all taxes and penalties
due hereunder; to dispose of taxes and penalties so collected
in the manner hereinafter provided; and to determine all
rights to credit memoranda arising on account of the erroneous
payment of tax or penalty hereunder. In the administration of,
and compliance with this subsection, the Department and

SB3019 Enrolled - 904 - LRB104 20255 HLH 33706 b
persons who are subject to this paragraph shall (i) have the
same rights, remedies, privileges, immunities, powers, and
duties, (ii) be subject to the same conditions, restrictions,
limitations, penalties, exclusions, exemptions, and
definitions of terms, and (iii) employ the same modes of
procedure as are prescribed in Sections 2 (except that the
reference to State in the definition of supplier maintaining a
place of business in this State shall mean the District), 2a,
2b, 2c, 3 through 3-50 (in respect to all provisions therein
other than the State rate of tax), 4 (except that the reference
to the State shall be to the District), 5, 7, 8 (except that
the jurisdiction to which the tax shall be a debt to the extent
indicated in that Section 8 shall be the District), 9 (except
as to the disposition of taxes and penalties collected, and
except that the retailer's discount is not allowed for taxes
paid on aviation fuel that are subject to the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10,
11, 12 (except the reference therein to Section 2b of the
Retailers' Occupation Tax Act), 13 (except that any reference
to the State shall mean the District), Sections 15, 16, 17, 18,
19 and 20 of the Service Occupation Tax Act and the Uniform
Penalty and Interest Act, as fully as if those provisions were
set forth herein.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability by separately stating the tax as an

SB3019 Enrolled - 905 - LRB104 20255 HLH 33706 b
additional charge, which charge may be stated in combination,
in a single amount, with State tax that servicemen are
authorized to collect under the Service Use Tax Act, in
accordance with such bracket schedules as the Department may
prescribe.
Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the State Metro-East Park and Recreation
District Fund or the Local Government Aviation Trust Fund, as
appropriate.
Nothing in this subsection shall be construed to authorize
the board to impose a tax upon the privilege of engaging in any
business which under the Constitution of the United States may
not be made the subject of taxation by the State.
(b-5) If, on January 1, 2025, a unit of local government
has in effect a tax under this Section, or if, after January 1,
2025, a unit of local government imposes a tax under this
Section, then that tax applies to leases of tangible personal
property in effect, entered into, or renewed on or after that
date in the same manner as the tax under this Section and in
accordance with the changes made by this amendatory Act of the
103rd General Assembly.

SB3019 Enrolled - 906 - LRB104 20255 HLH 33706 b
(c) Except as otherwise provided in this paragraph, the
Department shall immediately pay over to the State Treasurer,
ex officio, as trustee, all taxes and penalties collected
under this Section to be deposited into the State Metro-East
Park and Recreation District Fund, which shall be an
unappropriated trust fund held outside of the State treasury.
Taxes and penalties collected on aviation fuel sold on or
after December 1, 2019 and through December 31, 2020, shall be
immediately paid over by the Department to the State
Treasurer, ex officio, as trustee, for deposit into the Local
Government Aviation Trust Fund. The Department shall only pay
moneys into the Local Government Aviation Trust Fund under
this Act for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
District.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under
this Section during the second preceding calendar month for
sales within a STAR bond district. The Department shall make
this certification only if the Metro East Park and Recreation
District imposes a tax on real property as provided in the
definition of "local sales taxes" under the Innovation

SB3019 Enrolled - 907 - LRB104 20255 HLH 33706 b
Development and Economy Act.
As soon as possible after the first day of each month,
beginning July 1, 2026, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Statewide
Innovation Development and Economy Act, collected under this
Section during the second preceding calendar month for sales
within a STAR bond district. The Department shall make this
certification only if the Metro East Park and Recreation
District imposes a tax on real property as provided in the
definition of "local sales taxes" under the Statewide
Innovation Development and Economy Act.
After the monthly transfers transfer to the STAR Bonds
Revenue Fund, on or before the 25th day of each calendar month,
the Department shall prepare and certify to the Comptroller
the disbursement of stated sums of money pursuant to Section
35 of this Act to the District from which retailers have paid
taxes or penalties to the Department during the second
preceding calendar month. The amount to be paid to the
District shall be the amount (not including credit memoranda
and not including taxes and penalties collected on aviation
fuel sold on or after December 1, 2019 and through December 31,
2020) collected under this Section during the second preceding
calendar month by the Department plus an amount the Department
determines is necessary to offset any amounts that were

SB3019 Enrolled - 908 - LRB104 20255 HLH 33706 b
erroneously paid to a different taxing body, and not including
(i) an amount equal to the amount of refunds made during the
second preceding calendar month by the Department on behalf of
the District, (ii) any amount that the Department determines
is necessary to offset any amounts that were payable to a
different taxing body but were erroneously paid to the
District, (iii) any amounts that are transferred to the STAR
Bonds Revenue Fund, and (iv) 1.5% of the remainder, which the
Department shall transfer into the Tax Compliance and
Administration Fund. The Department, at the time of each
monthly disbursement to the District, shall prepare and
certify to the State Comptroller the amount to be transferred
into the Tax Compliance and Administration Fund under this
subsection. Within 10 days after receipt by the Comptroller of
the disbursement certification to the District and the Tax
Compliance and Administration Fund provided for in this
Section to be given to the Comptroller by the Department, the
Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with directions contained in
the certification.
(d) For the purpose of determining whether a tax
authorized under this Section is applicable, a retail sale by
a producer of coal or another mineral mined in Illinois is a
sale at retail at the place where the coal or other mineral
mined in Illinois is extracted from the earth. This paragraph
does not apply to coal or another mineral when it is delivered

SB3019 Enrolled - 909 - LRB104 20255 HLH 33706 b
or shipped by the seller to the purchaser at a point outside
Illinois so that the sale is exempt under the United States
Constitution as a sale in interstate or foreign commerce.
(e) Nothing in this Section shall be construed to
authorize the board to impose a tax upon the privilege of
engaging in any business that under the Constitution of the
United States may not be made the subject of taxation by this
State.
(f) An ordinance imposing a tax under this Section or an
ordinance extending the imposition of a tax to an additional
county or counties shall be certified by the board and filed
with the Department of Revenue either (i) on or before the
first day of April, whereupon the Department shall proceed to
administer and enforce the tax as of the first day of July next
following the filing; or (ii) on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce the tax as of the first day of January next
following the filing.
(g) When certifying the amount of a monthly disbursement
to the District under this Section, the Department shall
increase or decrease the amounts by an amount necessary to
offset any misallocation of previous disbursements. The offset
amount shall be the amount erroneously disbursed within the
previous 6 months from the time a misallocation is discovered.
(Source: P.A. 102-700, eff. 4-19-22; 103-592, eff. 1-1-25.)

SB3019 Enrolled - 910 - LRB104 20255 HLH 33706 b
Section 100-30. The Local Mass Transit District Act is
amended by changing Section 5.01 as follows:
(70 ILCS 3610/5.01) (from Ch. 111 2/3, par. 355.01)
Sec. 5.01. Metro East Mass Transit District; use and
occupation taxes.
(a) The Board of Trustees of any Metro East Mass Transit
District may, by ordinance adopted with the concurrence of
two-thirds of the then trustees, impose throughout the
District any or all of the taxes and fees provided in this
Section. Except as otherwise provided, all taxes and fees
imposed under this Section shall be used only for public mass
transportation systems, and the amount used to provide mass
transit service to unserved areas of the District shall be in
the same proportion to the total proceeds as the number of
persons residing in the unserved areas is to the total
population of the District. Except as otherwise provided in
this Act, taxes imposed under this Section and civil penalties
imposed incident thereto shall be collected and enforced by
the State Department of Revenue. The Department shall have the
power to administer and enforce the taxes and to determine all
rights for refunds for erroneous payments of the taxes.
(b) The Board may impose a Metro East Mass Transit
District Retailers' Occupation Tax upon all persons engaged in
the business of selling tangible personal property at retail
in the district at a rate of 1/4 of 1%, or as authorized under

SB3019 Enrolled - 911 - LRB104 20255 HLH 33706 b
subsection (d-5) of this Section, of the gross receipts from
the sales made in the course of such business within the
district, including sales of food for human consumption that
is to be consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, candy, and food that has been
prepared for immediate consumption), except that the rate of
tax imposed under this Section on sales of aviation fuel on or
after December 1, 2019 shall be 0.25% in Madison County unless
the Metro-East Mass Transit District in Madison County has an
"airport-related purpose" and any additional amount authorized
under subsection (d-5) is expended for airport-related
purposes. If there is no airport-related purpose to which
aviation fuel tax revenue is dedicated, then aviation fuel is
excluded from any additional amount authorized under
subsection (d-5). The rate in St. Clair County shall be 0.25%
unless the Metro-East Mass Transit District in St. Clair
County has an "airport-related purpose" and the additional
0.50% of the 0.75% tax on aviation fuel imposed in that County
is expended for airport-related purposes. If there is no
airport-related purpose to which aviation fuel tax revenue is
dedicated, then aviation fuel is excluded from the additional
0.50% of the 0.75% tax.
The Board must comply with the certification requirements
for airport-related purposes under Section 2-22 of the
Retailers' Occupation Tax Act. For purposes of this Section,

SB3019 Enrolled - 912 - LRB104 20255 HLH 33706 b
"airport-related purposes" has the meaning ascribed in Section
6z-20.2 of the State Finance Act. This exclusion for aviation
fuel only applies for so long as the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
District.
The tax imposed under this Section and all civil penalties
that may be assessed as an incident thereof shall be collected
and enforced by the State Department of Revenue. The
Department shall have full power to administer and enforce
this Section; to collect all taxes and penalties so collected
in the manner hereinafter provided; and to determine all
rights to credit memoranda arising on account of the erroneous
payment of tax or penalty hereunder. In the administration of,
and compliance with, this Section, the Department and persons
who are subject to this Section shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions and definitions of terms and
employ the same modes of procedure, as are prescribed in
Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65
(in respect to all provisions therein other than the State
rate of tax and other than the exemption for food for human
consumption that is to be consumed off the premises where it is
sold (other than alcoholic beverages, food consisting of or
infused with adult use cannabis, soft drinks, candy, and food
that has been prepared for immediate consumption), which is

SB3019 Enrolled - 913 - LRB104 20255 HLH 33706 b
taxed at the rate as provided in this subsection), 2c, 3
(except as to the disposition of taxes and penalties
collected, and except that the retailer's discount is not
allowed for taxes paid on aviation fuel that are subject to the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6,
6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12, 13, and 14 of the
Retailers' Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act, as fully as if those provisions were
set forth herein.
Persons subject to any tax imposed under the Section may
reimburse themselves for their seller's tax liability
hereunder by separately stating the tax as an additional
charge, which charge may be stated in combination, in a single
amount, with State taxes that sellers are required to collect
under the Use Tax Act, in accordance with such bracket
schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Metro East Mass Transit District tax fund
established under paragraph (h) of this Section or the Local
Government Aviation Trust Fund, as appropriate.

SB3019 Enrolled - 914 - LRB104 20255 HLH 33706 b
If a tax is imposed under this subsection (b), a tax shall
also be imposed under subsections (c) and (d) of this Section.
For the purpose of determining whether a tax authorized
under this Section is applicable, a retail sale, by a producer
of coal or other mineral mined in Illinois, is a sale at retail
at the place where the coal or other mineral mined in Illinois
is extracted from the earth. This paragraph does not apply to
coal or other mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the Federal Constitution as a sale in
interstate or foreign commerce.
No tax shall be imposed or collected under this subsection
on the sale of a motor vehicle in this State to a resident of
another state if that motor vehicle will not be titled in this
State.
Nothing in this Section shall be construed to authorize
the Metro East Mass Transit District to impose a tax upon the
privilege of engaging in any business which under the
Constitution of the United States may not be made the subject
of taxation by this State.
(c) If a tax has been imposed under subsection (b), a Metro
East Mass Transit District Service Occupation Tax shall also
be imposed upon all persons engaged, in the district, in the
business of making sales of service, who, as an incident to
making those sales of service, transfer tangible personal
property within the District, either in the form of tangible

SB3019 Enrolled - 915 - LRB104 20255 HLH 33706 b
personal property or in the form of real estate as an incident
to a sale of service. The tax rate shall be (1) 1/4%, or as
authorized under subsection (d-5) of this Section, of the
selling price of tangible personal property so transferred
within the district, including food for human consumption that
is to be consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, candy, and food that has been
prepared for immediate consumption); and (2) 1/4%, or as
authorized under subsection (d-5) of this Section, of the
serviceman's cost price of food prepared for immediate
consumption and transferred incident to a sale of service
subject to the service occupation tax by an entity that is
licensed under the Hospital Licensing Act, the Nursing Home
Care Act, the Assisted Living and Shared Housing Act, the
Specialized Mental Health Rehabilitation Act of 2013, the
ID/DD Community Care Act, or the MC/DD Act, or the Child Care
Act of 1969, or an entity that holds a permit issued pursuant
to the Life Care Facilities Act. However, the rate of tax
imposed in these Counties under this Section on sales of
aviation fuel on or after December 1, 2019 shall be 0.25% in
Madison County unless the Metro-East Mass Transit District in
Madison County has an "airport-related purpose" and any
additional amount authorized under subsection (d-5) is
expended for airport-related purposes. If there is no
airport-related purpose to which aviation fuel tax revenue is

SB3019 Enrolled - 916 - LRB104 20255 HLH 33706 b
dedicated, then aviation fuel is excluded from any additional
amount authorized under subsection (d-5). The rate in St.
Clair County shall be 0.25% unless the Metro-East Mass Transit
District in St. Clair County has an "airport-related purpose"
and the additional 0.50% of the 0.75% tax on aviation fuel is
expended for airport-related purposes. If there is no
airport-related purpose to which aviation fuel tax revenue is
dedicated, then aviation fuel is excluded from the additional
0.50% of the 0.75% tax.
The Board must comply with the certification requirements
for airport-related purposes under Section 2-22 of the
Retailers' Occupation Tax Act. For purposes of this Section,
"airport-related purposes" has the meaning ascribed in Section
6z-20.2 of the State Finance Act. This exclusion for aviation
fuel only applies for so long as the revenue use requirements
of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
District.
The tax imposed under this paragraph and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the State Department of Revenue. The
Department shall have full power to administer and enforce
this paragraph; to collect all taxes and penalties due
hereunder; to dispose of taxes and penalties so collected in
the manner hereinafter provided; and to determine all rights
to credit memoranda arising on account of the erroneous
payment of tax or penalty hereunder. In the administration of,

SB3019 Enrolled - 917 - LRB104 20255 HLH 33706 b
and compliance with this paragraph, the Department and persons
who are subject to this paragraph shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions and definitions of terms and
employ the same modes of procedure as are prescribed in
Sections 1a-1, 2 (except that the reference to State in the
definition of supplier maintaining a place of business in this
State shall mean the Authority), 2a, 3 through 3-50 (in
respect to all provisions therein other than (i) the State
rate of tax; (ii) the exemption for food for human consumption
that is to be consumed off the premises where it is sold (other
than alcoholic beverages, food consisting of or infused with
adult use cannabis, soft drinks, candy, and food that has been
prepared for immediate consumption), which is taxed at the
rate as provided in this subsection; and (iii) the exemption
for food prepared for immediate consumption and transferred
incident to a sale of service subject to the service
occupation tax by an entity that is licensed under the
Hospital Licensing Act, the Nursing Home Care Act, the
Assisted Living and Shared Housing Act, the Specialized Mental
Health Rehabilitation Act of 2013, the ID/DD Community Care
Act, or the MC/DD Act, or the Child Care Act of 1969, or an
entity that holds a permit issued pursuant to the Life Care
Facilities Act, which is taxed at the rate as provided in this
subsection), 4 (except that the reference to the State shall

SB3019 Enrolled - 918 - LRB104 20255 HLH 33706 b
be to the Authority), 5, 7, 8 (except that the jurisdiction to
which the tax shall be a debt to the extent indicated in that
Section 8 shall be the District), 9 (except as to the
disposition of taxes and penalties collected, and except that
the returned merchandise credit for this tax may not be taken
against any State tax, and except that the retailer's discount
is not allowed for taxes paid on aviation fuel that are subject
to the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133), 10, 11, 12 (except the reference therein to
Section 2b of the Retailers' Occupation Tax Act), 13 (except
that any reference to the State shall mean the District), the
first paragraph of Section 15, 16, 17, 18, 19 and 20 of the
Service Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act, as fully as if those provisions were
set forth herein.
Persons subject to any tax imposed under the authority
granted in this paragraph may reimburse themselves for their
serviceman's tax liability hereunder by separately stating the
tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax that
servicemen are authorized to collect under the Service Use Tax
Act, in accordance with such bracket schedules as the
Department may prescribe.
Whenever the Department determines that a refund should be
made under this paragraph to a claimant instead of issuing a
credit memorandum, the Department shall notify the State

SB3019 Enrolled - 919 - LRB104 20255 HLH 33706 b
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Metro East Mass Transit District tax fund
established under paragraph (h) of this Section or the Local
Government Aviation Trust Fund, as appropriate.
Nothing in this paragraph shall be construed to authorize
the District to impose a tax upon the privilege of engaging in
any business which under the Constitution of the United States
may not be made the subject of taxation by the State.
(d) If a tax has been imposed under subsection (b), a Metro
East Mass Transit District Use Tax shall also be imposed upon
the privilege of using, in the district, any item of tangible
personal property that is purchased outside the district at
retail from a retailer, and that is titled or registered with
an agency of this State's government, at a rate of 1/4%, or as
authorized under subsection (d-5) of this Section, of the
selling price of the tangible personal property within the
District, as "selling price" is defined in the Use Tax Act. The
tax shall be collected from persons whose Illinois address for
titling or registration purposes is given as being in the
District. The tax shall be collected by the Department of
Revenue for the Metro East Mass Transit District. The tax must
be paid to the State, or an exemption determination must be
obtained from the Department of Revenue, before the title or
certificate of registration for the property may be issued.

SB3019 Enrolled - 920 - LRB104 20255 HLH 33706 b
The tax or proof of exemption may be transmitted to the
Department by way of the State agency with which, or the State
officer with whom, the tangible personal property must be
titled or registered if the Department and the State agency or
State officer determine that this procedure will expedite the
processing of applications for title or registration.
The Department shall have full power to administer and
enforce this paragraph; to collect all taxes, penalties and
interest due hereunder; to dispose of taxes, penalties and
interest so collected in the manner hereinafter provided; and
to determine all rights to credit memoranda or refunds arising
on account of the erroneous payment of tax, penalty or
interest hereunder. In the administration of, and compliance
with, this paragraph, the Department and persons who are
subject to this paragraph shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions and definitions of terms and
employ the same modes of procedure, as are prescribed in
Sections 2 (except the definition of "retailer maintaining a
place of business in this State"), 3 through 3-80 (except
provisions pertaining to the State rate of tax, and except
provisions concerning collection or refunding of the tax by
retailers), 4, 11, 12, 12a, 14, 15, 19 (except the portions
pertaining to claims by retailers and except the last
paragraph concerning refunds), 20, 21 and 22 of the Use Tax Act

SB3019 Enrolled - 921 - LRB104 20255 HLH 33706 b
and Section 3-7 of the Uniform Penalty and Interest Act, that
are not inconsistent with this paragraph, as fully as if those
provisions were set forth herein.
Whenever the Department determines that a refund should be
made under this paragraph to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Metro East Mass Transit District tax fund
established under paragraph (h) of this Section.
(d-1) If, on January 1, 2025, a unit of local government
has in effect a tax under subsections (b), (c), and (d) or if,
after January 1, 2025, a unit of local government imposes a tax
under subsections (b), (c), and (d), then that tax applies to
leases of tangible personal property in effect, entered into,
or renewed on or after that date in the same manner as the tax
under this Section and in accordance with the changes made by
this amendatory Act of the 103rd General Assembly.
(d-5) (A) The county board of any county participating in
the Metro East Mass Transit District may authorize, by
ordinance, a referendum on the question of whether the tax
rates for the Metro East Mass Transit District Retailers'
Occupation Tax, the Metro East Mass Transit District Service
Occupation Tax, and the Metro East Mass Transit District Use
Tax for the District should be increased from 0.25% to 0.75%.

SB3019 Enrolled - 922 - LRB104 20255 HLH 33706 b
Upon adopting the ordinance, the county board shall certify
the proposition to the proper election officials who shall
submit the proposition to the voters of the District at the
next election, in accordance with the general election law.
The proposition shall be in substantially the following
form:
Shall the tax rates for the Metro East Mass Transit
District Retailers' Occupation Tax, the Metro East Mass
Transit District Service Occupation Tax, and the Metro
East Mass Transit District Use Tax be increased from 0.25%
to 0.75%?
(B) Two thousand five hundred electors of any Metro East
Mass Transit District may petition the Chief Judge of the
Circuit Court, or any judge of that Circuit designated by the
Chief Judge, in which that District is located to cause to be
submitted to a vote of the electors the question whether the
tax rates for the Metro East Mass Transit District Retailers'
Occupation Tax, the Metro East Mass Transit District Service
Occupation Tax, and the Metro East Mass Transit District Use
Tax for the District should be increased from 0.25% to 0.75%.
Upon submission of such petition the court shall set a
date not less than 10 nor more than 30 days thereafter for a
hearing on the sufficiency thereof. Notice of the filing of
such petition and of such date shall be given in writing to the
District and the County Clerk at least 7 days before the date
of such hearing.

SB3019 Enrolled - 923 - LRB104 20255 HLH 33706 b
If such petition is found sufficient, the court shall
enter an order to submit that proposition at the next
election, in accordance with general election law.
The form of the petition shall be in substantially the
following form: To the Circuit Court of the County of (name of
county):
We, the undersigned electors of the (name of transit
district), respectfully petition your honor to submit to a
vote of the electors of (name of transit district) the
following proposition:
Shall the tax rates for the Metro East Mass Transit
District Retailers' Occupation Tax, the Metro East Mass
Transit District Service Occupation Tax, and the Metro
East Mass Transit District Use Tax be increased from 0.25%
to 0.75%?
Name Address, with Street and Number.
...................... ........................................
...................... ........................................
(C) The votes shall be recorded as "YES" or "NO". If a
majority of all votes cast on the proposition are for the
increase in the tax rates, the Metro East Mass Transit
District shall begin imposing the increased rates in the
District, and the Department of Revenue shall begin collecting
the increased amounts, as provided under this Section. An
ordinance imposing or discontinuing a tax hereunder or
effecting a change in the rate thereof shall be adopted and a

SB3019 Enrolled - 924 - LRB104 20255 HLH 33706 b
certified copy thereof filed with the Department on or before
the first day of October, whereupon the Department shall
proceed to administer and enforce this Section as of the first
day of January next following the adoption and filing, or on or
before the first day of April, whereupon the Department shall
proceed to administer and enforce this Section as of the first
day of July next following the adoption and filing.
(D) If the voters have approved a referendum under this
subsection, before November 1, 1994, to increase the tax rate
under this subsection, the Metro East Mass Transit District
Board of Trustees may adopt by a majority vote an ordinance at
any time before January 1, 1995 that excludes from the rate
increase tangible personal property that is titled or
registered with an agency of this State's government. The
ordinance excluding titled or registered tangible personal
property from the rate increase must be filed with the
Department at least 15 days before its effective date. At any
time after adopting an ordinance excluding from the rate
increase tangible personal property that is titled or
registered with an agency of this State's government, the
Metro East Mass Transit District Board of Trustees may adopt
an ordinance applying the rate increase to that tangible
personal property. The ordinance shall be adopted, and a
certified copy of that ordinance shall be filed with the
Department, on or before October 1, whereupon the Department
shall proceed to administer and enforce the rate increase

SB3019 Enrolled - 925 - LRB104 20255 HLH 33706 b
against tangible personal property titled or registered with
an agency of this State's government as of the following
January 1. After December 31, 1995, any reimposed rate
increase in effect under this subsection shall no longer apply
to tangible personal property titled or registered with an
agency of this State's government. Beginning January 1, 1996,
the Board of Trustees of any Metro East Mass Transit District
may never reimpose a previously excluded tax rate increase on
tangible personal property titled or registered with an agency
of this State's government. After July 1, 2004, if the voters
have approved a referendum under this subsection to increase
the tax rate under this subsection, the Metro East Mass
Transit District Board of Trustees may adopt by a majority
vote an ordinance that excludes from the rate increase
tangible personal property that is titled or registered with
an agency of this State's government. The ordinance excluding
titled or registered tangible personal property from the rate
increase shall be adopted, and a certified copy of that
ordinance shall be filed with the Department on or before
October 1, whereupon the Department shall administer and
enforce this exclusion from the rate increase as of the
following January 1, or on or before April 1, whereupon the
Department shall administer and enforce this exclusion from
the rate increase as of the following July 1. The Board of
Trustees of any Metro East Mass Transit District may never
reimpose a previously excluded tax rate increase on tangible

SB3019 Enrolled - 926 - LRB104 20255 HLH 33706 b
personal property titled or registered with an agency of this
State's government.
(d-6) If the Board of Trustees of any Metro East Mass
Transit District has imposed a rate increase under subsection
(d-5) and filed an ordinance with the Department of Revenue
excluding titled property from the higher rate, then that
Board may, by ordinance adopted with the concurrence of
two-thirds of the then trustees, impose throughout the
District a fee. The fee on the excluded property shall not
exceed $20 per retail transaction or an amount equal to the
amount of tax excluded, whichever is less, on tangible
personal property that is titled or registered with an agency
of this State's government. Beginning July 1, 2004, the fee
shall apply only to titled property that is subject to either
the Metro East Mass Transit District Retailers' Occupation Tax
or the Metro East Mass Transit District Service Occupation
Tax. No fee shall be imposed or collected under this
subsection on the sale of a motor vehicle in this State to a
resident of another state if that motor vehicle will not be
titled in this State.
(d-7) Until June 30, 2004, if a fee has been imposed under
subsection (d-6), a fee shall also be imposed upon the
privilege of using, in the district, any item of tangible
personal property that is titled or registered with any agency
of this State's government, in an amount equal to the amount of
the fee imposed under subsection (d-6).

SB3019 Enrolled - 927 - LRB104 20255 HLH 33706 b
(d-7.1) Beginning July 1, 2004, any fee imposed by the
Board of Trustees of any Metro East Mass Transit District
under subsection (d-6) and all civil penalties that may be
assessed as an incident of the fees shall be collected and
enforced by the State Department of Revenue. Reference to
"taxes" in this Section shall be construed to apply to the
administration, payment, and remittance of all fees under this
Section. For purposes of any fee imposed under subsection
(d-6), 4% of the fee, penalty, and interest received by the
Department in the first 12 months that the fee is collected and
enforced by the Department and 2% of the fee, penalty, and
interest following the first 12 months (except the amount
collected on aviation fuel sold on or after December 1, 2019)
shall be deposited into the Tax Compliance and Administration
Fund and shall be used by the Department, subject to
appropriation, to cover the costs of the Department. No
retailers' discount shall apply to any fee imposed under
subsection (d-6).
(d-8) No item of titled property shall be subject to both
the higher rate approved by referendum, as authorized under
subsection (d-5), and any fee imposed under subsection (d-6)
or (d-7).
(d-9) (Blank).
(d-10) (Blank).
(e) A certificate of registration issued by the State
Department of Revenue to a retailer under the Retailers'

SB3019 Enrolled - 928 - LRB104 20255 HLH 33706 b
Occupation Tax Act or under the Service Occupation Tax Act
shall permit the registrant to engage in a business that is
taxed under the tax imposed under paragraphs (b), (c) or (d) of
this Section and no additional registration shall be required
under the tax. A certificate issued under the Use Tax Act or
the Service Use Tax Act shall be applicable with regard to any
tax imposed under paragraph (c) of this Section.
(f) (Blank).
(g) Any ordinance imposing or discontinuing any tax under
this Section shall be adopted and a certified copy thereof
filed with the Department on or before June 1, whereupon the
Department of Revenue shall proceed to administer and enforce
this Section on behalf of the Metro East Mass Transit District
as of September 1 next following such adoption and filing.
Beginning January 1, 1992, an ordinance or resolution imposing
or discontinuing the tax hereunder shall be adopted and a
certified copy thereof filed with the Department on or before
the first day of July, whereupon the Department shall proceed
to administer and enforce this Section as of the first day of
October next following such adoption and filing. Beginning
January 1, 1993, except as provided in subsection (d-5) of
this Section, an ordinance or resolution imposing or
discontinuing the tax hereunder shall be adopted and a
certified copy thereof filed with the Department on or before
the first day of October, whereupon the Department shall
proceed to administer and enforce this Section as of the first

SB3019 Enrolled - 929 - LRB104 20255 HLH 33706 b
day of January next following such adoption and filing, or,
beginning January 1, 2004, on or before the first day of April,
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of July next following
the adoption and filing.
(h) Except as provided in subsection (d-7.1), the State
Department of Revenue shall, upon collecting any taxes as
provided in this Section, pay the taxes over to the State
Treasurer as trustee for the District. The taxes shall be held
in a trust fund outside the State treasury. If an
airport-related purpose has been certified, taxes and
penalties collected in St. Clair County on aviation fuel sold
on or after December 1, 2019 from the 0.50% of the 0.75% rate
shall be immediately paid over by the Department to the State
Treasurer, ex officio, as trustee, for deposit into the Local
Government Aviation Trust Fund. The Department shall only pay
moneys into the Local Government Aviation Trust Fund under
this Act for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the
District.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the
Department of Revenue, the Comptroller shall order
transferred, and the Treasurer shall transfer, to the STAR
Bonds Revenue Fund the local sales tax increment, as defined
in the Innovation Development and Economy Act, collected under

SB3019 Enrolled - 930 - LRB104 20255 HLH 33706 b
this Section during the second preceding calendar month for
sales within a STAR bond district. The Department shall make
this certification only if the local mass transit district
imposes a tax on real property as provided in the definition of
"local sales taxes" under the Innovation Development and
Economy Act.
As soon as possible after the first day of each month,
beginning July 1, 2026, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Statewide
Innovation Development and Economy Act, collected under this
Section during the second preceding calendar month for sales
within a STAR bond district. The Department shall make this
certification only if the local mass transit district imposes
a tax on real property as provided in the definition of "local
sales taxes" under the Statewide Innovation Development and
Economy Act.
After the monthly transfers transfer to the STAR Bonds
Revenue Fund, on or before the 25th day of each calendar month,
the State Department of Revenue shall prepare and certify to
the Comptroller of the State of Illinois the amount to be paid
to the District, which shall be the amount (not including
credit memoranda and not including taxes and penalties
collected on aviation fuel sold on or after December 1, 2019
that are deposited into the Local Government Aviation Trust

SB3019 Enrolled - 931 - LRB104 20255 HLH 33706 b
Fund) collected under this Section during the second preceding
calendar month by the Department plus an amount the Department
determines is necessary to offset any amounts that were
erroneously paid to a different taxing body, and not including
any amount equal to the amount of refunds made during the
second preceding calendar month by the Department on behalf of
the District, and not including any amount that the Department
determines is necessary to offset any amounts that were
payable to a different taxing body but were erroneously paid
to the District, and less any amounts that are transferred to
the STAR Bonds Revenue Fund, less 1.5% of the remainder, which
the Department shall transfer into the Tax Compliance and
Administration Fund. The Department, at the time of each
monthly disbursement to the District, shall prepare and
certify to the State Comptroller the amount to be transferred
into the Tax Compliance and Administration Fund under this
subsection. Within 10 days after receipt by the Comptroller of
the certification of the amount to be paid to the District and
the Tax Compliance and Administration Fund, the Comptroller
shall cause an order to be drawn for payment for the amount in
accordance with the direction in the certification.
(Source: P.A. 103-592, eff. 1-1-25; 104-6, eff. 1-1-26.)
ARTICLE 110
Section 110-5. The Tobacco Products Tax Act of 1995 is

SB3019 Enrolled - 932 - LRB104 20255 HLH 33706 b
amended by changing Sections 10-5, 10-10, 10-25, 10-30, 10-35,
10-37, 10-38, 10-45, and 10-50 and by adding Section 10-24 as
follows:
(35 ILCS 143/10-5)
Sec. 10-5. Definitions. For purposes of this Act:
"Actual cost" means the actual price paid for each
individual SKU by a distributor or a remote retail seller
before any stated discounts or rebates.
"Actual cost list" means the average actual price paid for
a SKU by a distributor or a remote retail seller, before any
stated discounts or rebates, to a manufacturer, wholesaler, or
distributor during the calendar year immediately preceding the
calendar year in which the sale occurs.
"Alternative nicotine product" means a product that does
not consist of or contain tobacco and that provides for the
ingestion into the body of nicotine, whether by chewing,
smoking, absorbing, dissolving, snorting, or sniffing.
"Alternative nicotine product" does not include electronic
cigarettes, as defined in this Act, or any product that is
approved by the United States Food and Drug Administration for
sale as a tobacco cessation product, as a tobacco dependence
product, or for other medical purposes and that is being
marketed and sold solely for that approved purpose.
"Business" means any trade, occupation, activity, or
enterprise engaged in, at any location whatsoever, for the

SB3019 Enrolled - 933 - LRB104 20255 HLH 33706 b
purpose of selling tobacco products.
"Cigar" means any roll of tobacco wrapped in leaf tobacco
or in any substance containing tobacco. "Cigar" does not
include a little cigar or any roll of tobacco that is
classified as a cigarette within the meaning of Section 1 of
the Cigarette Tax Act.
"Cigarette" has the meaning ascribed to the term in
Section 1 of the Cigarette Tax Act.
"Contraband little cigar" means:
(1) packages of little cigars containing 20 or 25
little cigars that do not bear a required tax stamp under
this Act;
(2) packages of little cigars containing 20 or 25
little cigars that bear a fraudulent, imitation, or
counterfeit tax stamp;
(3) packages of little cigars containing 20 or 25
little cigars that are improperly tax stamped, including
packages of little cigars that bear only a tax stamp of
another state or taxing jurisdiction; or
(4) packages of little cigars containing other than 20
or 25 little cigars in the possession of a distributor,
retailer, or wholesaler, unless the distributor, retailer,
or wholesaler possesses, or produces within the time frame
provided in Section 10-27 or 10-28 of this Act, an invoice
from a stamping distributor, distributor, or wholesaler
showing that the tax on the packages has been or will be

SB3019 Enrolled - 934 - LRB104 20255 HLH 33706 b
paid.
"Consumer" means a person who acquires ownership of
tangible personal property, including tobacco products, for
use or consumption in this State and not for resale.
"Correctional Industries program" means a program run by a
State penal institution in which residents of the penal
institution produce tobacco products for sale to persons
incarcerated in penal institutions or resident patients of a
State-operated State operated mental health facility.
"Department" means the Illinois Department of Revenue.
"Distributor" means any of the following:
(1) Any manufacturer or wholesaler in this State
engaged in the business of selling tobacco products who
sells, exchanges, or distributes tobacco products to
retailers or consumers in this State.
(2) Any manufacturer or wholesaler engaged in the
business of selling tobacco products from without this
State who sells, exchanges, distributes, ships, or
transports tobacco products to retailers or consumers
located in this State, so long as that manufacturer or
wholesaler has or maintains within this State, directly or
by subsidiary, an office, sales house, or other place of
business, or any agent or other representative operating
within this State under the authority of the person or
subsidiary, irrespective of whether the place of business
or agent or other representative is located here

SB3019 Enrolled - 935 - LRB104 20255 HLH 33706 b
permanently or temporarily.
(3) Any retailer who receives tobacco products on
which the tax has not been or will not be paid by another
distributor.
"Distributor" does not include any person, wherever
resident or located, who makes, manufactures, or fabricates
tobacco products as part of a Correctional Industries program
for sale to residents incarcerated in penal institutions or
resident patients of a State-operated State operated mental
health facility.
"Electronic cigarette" means:
(1) any device that employs a battery or other
mechanism to heat a solution or substance to produce a
vapor or aerosol intended for inhalation, except for (A)
any device designed solely for use with cannabis that
contains a statement on the retail packaging that the
device is designed solely for use with cannabis and not
for use with tobacco or (B) any device that contains a
solution or substance that contains cannabis subject to
tax under the Compassionate Use of Medical Cannabis
Program Act or the Cannabis Regulation and Tax Act;
(2) any cartridge or container of a solution or
substance intended to be used with or in the device or to
refill the device, except for any cartridge or container
of a solution or substance that contains cannabis subject
to tax under the Compassionate Use of Medical Cannabis

SB3019 Enrolled - 936 - LRB104 20255 HLH 33706 b
Program Act or the Cannabis Regulation and Tax Act; or
(3) any solution or substance, whether or not it
contains nicotine, intended for use in the device, except
for any solution or substance that contains cannabis
subject to tax under the Compassionate Use of Medical
Cannabis Program Act or the Cannabis Regulation and Tax
Act.
The changes made to the definition of "electronic
cigarette" by this amendatory Act of the 102nd General
Assembly apply on and after June 28, 2019, but no claim for
credit or refund is allowed on or after the effective date of
this amendatory Act of the 102nd General Assembly for such
taxes paid during the period beginning June 28, 2019 and the
effective date of this amendatory Act of the 102nd General
Assembly.
"Electronic cigarette" includes, but is not limited to,
any electronic nicotine delivery system, electronic cigar,
electronic cigarillo, electronic pipe, electronic hookah, vape
pen, or similar product or device, and any component or part
that can be used to build the product or device. "Electronic
cigarette" does not include: cigarettes, as defined in Section
1 of the Cigarette Tax Act; any product approved by the United
States Food and Drug Administration for sale as a tobacco
cessation product, a tobacco dependence product, or for other
medical purposes that is marketed and sold solely for that
approved purpose; any asthma inhaler prescribed by a physician

SB3019 Enrolled - 937 - LRB104 20255 HLH 33706 b
for that condition that is marketed and sold solely for that
approved purpose; or any therapeutic product approved for use
under the Compassionate Use of Medical Cannabis Program Act.
"Little cigar" means and includes any roll, made wholly or
in part of tobacco, where such roll has an integrated
cellulose acetate filter and weighs less than 4 pounds per
thousand and the wrapper or cover of which is made in whole or
in part of tobacco.
"Manufacturer" means any person, wherever resident or
located, who manufactures and sells tobacco products, except a
person who makes, manufactures, or fabricates tobacco products
as a part of a Correctional Industries program for sale to
persons incarcerated in penal institutions or resident
patients of a State-operated State operated mental health
facility.
Beginning on January 1, 2013, "moist snuff" means any
finely cut, ground, or powdered tobacco that is not intended
to be smoked, but shall not include any finely cut, ground, or
powdered tobacco that is intended to be placed in the nasal
cavity.
"Nicotine" means any form of the chemical nicotine,
including any salt or complex, regardless of whether the
chemical is naturally or synthetically derived, and includes
nicotinic alkaloids and nicotine analogs.
"Person" means any natural individual, firm, partnership,
association, joint stock company, joint venture, limited

SB3019 Enrolled - 938 - LRB104 20255 HLH 33706 b
liability company, or public or private corporation, however
formed, or a receiver, executor, administrator, trustee,
conservator, or other representative appointed by order of any
court.
"Pipe tobacco" means any tobacco that, because of its
appearance, type, packaging, or labeling, is suitable for use
in a pipe and is likely to be offered to or purchased by a
consumer as tobacco to be smoked in a pipe.
"Place of business" means and includes any place where
tobacco products are sold or where tobacco products are
manufactured, stored, or kept for the purpose of sale or
consumption, including any vessel, vehicle, airplane, train,
or vending machine.
"Prior continuous compliance taxpayer" means any person
who is licensed under this Act and who, having been a licensee
for a continuous period of 2 years, is determined by the
Department not to have been either delinquent or deficient in
the payment of tax liability during that period or otherwise
in violation of this Act. "Prior continuous compliance
taxpayer" also means any taxpayer who has, as verified by the
Department, continuously complied with the condition of his
bond or other security under provisions of this Act for a
period of 2 consecutive years. In calculating the consecutive
period of time described in this definition for qualification
as a prior continuous compliance taxpayer, a consecutive
period of time of qualifying compliance immediately prior to

SB3019 Enrolled - 939 - LRB104 20255 HLH 33706 b
the effective date of this amendatory Act of the 103rd General
Assembly shall be credited to any licensee who became licensed
on or before the effective date of this amendatory Act of the
103rd General Assembly. A distributor that is a prior
continuous compliance taxpayer and becomes a successor to a
distributor as the result of an acquisition, merger, or
consolidation of that distributor shall be deemed to be a
prior continuous compliance taxpayer with respect to the
acquired, merged, or consolidated entity.
"Remote retail sale" means a sale by a remote retail
seller of cigars, pipe tobacco, or alternative nicotine
products to a consumer in this State when:
(1) the buyer submits the order for the sale by means
of a telephone or other method of voice transmission, by
first-class mail, or by using the Internet or other online
service, or if the seller is otherwise not in the physical
presence of the buyer when the request for purchase or
order is made; or
(2) the cigars, pipe tobacco, or alternative nicotine
products are delivered to the buyer by common carrier,
private delivery service, or other method of remote
delivery, or the seller is not in the physical presence of
the buyer when the buyer obtains possession of the cigars,
pipe tobacco, or alternative nicotine products.
"Remote retail seller" means a person located outside of
this State who makes remote retail sales of cigars, pipe

SB3019 Enrolled - 940 - LRB104 20255 HLH 33706 b
tobacco, or alternative nicotine products, so long as that
person does not maintain within this State, directly or by a
subsidiary, an office, distribution house, sales house,
warehouse, or other place of business, or any agent or other
representative operating within this State under the authority
of the person or its subsidiary, irrespective of whether the
place of business or the agent is located here permanently or
temporarily or whether the person or subsidiary is licensed to
do business in this State.
"Retailer" means any person in this State engaged in the
business of selling tobacco products to consumers in this
State, regardless of quantity or number of sales.
"Sale" means any transfer, exchange, or barter in any
manner or by any means whatsoever for a consideration and
includes all sales made by persons.
"Stamp" or "stamps" mean the indicia required to be
affixed on a package of little cigars that evidence payment of
the tax on packages of little cigars containing 20 or 25 little
cigars under Section 10-10 of this Act. These stamps shall be
the same stamps used for cigarettes under the Cigarette Tax
Act.
"Stamping distributor" means a distributor licensed under
this Act and also licensed as a distributor under the
Cigarette Tax Act or Cigarette Use Tax Act.
"Stock-keeping unit" or "SKU" means the unique identifier
assigned by a manufacturer, distributor, or remote retail

SB3019 Enrolled - 941 - LRB104 20255 HLH 33706 b
seller to various tobacco products in order to track
inventory.
"Tobacco products" means any product that is made from or
derived from tobacco that is intended for human consumption or
is likely to be consumed, including but not limited to cigars,
including little cigars; cheroots; stogies; periques;
granulated, plug cut, crimp cut, ready rubbed, and other
smoking tobacco; snuff (including moist snuff) and snuff
flour; cavendish; plug and twist tobacco; fine-cut and other
chewing tobaccos; shorts; refuse scraps, clippings, cuttings,
and sweepings sweeping of tobacco; snus; shisha and tobacco
for use in waterpipes; and other kinds and forms of tobacco,
prepared in such manner as to be suitable for chewing or
smoking in a pipe or otherwise, or both for chewing and smoking
or for inhalation, absorption, or ingesting by any other
means; but does not include cigarettes as defined in Section 1
of the Cigarette Tax Act or tobacco purchased for the
manufacture of cigarettes by cigarette distributors and
manufacturers defined in the Cigarette Tax Act and persons who
make, manufacture, or fabricate cigarettes as a part of a
Correctional Industries program for sale to residents
incarcerated in penal institutions or resident patients of a
State-operated State operated mental health facility.
Beginning on July 1, 2019, "tobacco products" also
includes electronic cigarettes.
Beginning July 1, 2025, "tobacco products" also includes

SB3019 Enrolled - 942 - LRB104 20255 HLH 33706 b
any product that is made from or derived from tobacco, or that
contains nicotine whether natural or synthetic, that is
intended for human consumption or is likely to be consumed,
including but not limited to nicotine pouches, lozenges, and
gum; and other kinds and forms of nicotine prepared in such
manner as to be suitable for chewing or smoking in a pipe or
otherwise, or both for chewing and smoking or for inhalation,
absorption, or ingesting by any other means.
"Tobacco products" does not include any product that has
been approved by the United States Food and Drug
Administration for sale as a tobacco or smoking cessation
product, a nicotine replacement therapy product, or for other
medical purposes where that product is marketed and sold
solely for such approved use, including but not limited to
spray or inhaler prescribed by a physician, chewing gum, skin
patches, or lozenges.
"Wholesale price" means the established list price for
which a manufacturer sells tobacco products to a distributor,
before the allowance of any discount, trade allowance, rebate,
or other reduction. In the absence of such an established list
price, the manufacturer's invoice price at which the
manufacturer sells the tobacco product to unaffiliated
distributors, before any discounts, trade allowances, rebates,
or other reductions, shall be presumed to be the wholesale
price.
"Wholesaler" means any person, wherever resident or

SB3019 Enrolled - 943 - LRB104 20255 HLH 33706 b
located, engaged in the business of selling tobacco products
to others for the purpose of resale. "Wholesaler", when used
in this Act, does not include a person licensed as a
distributor under Section 10-20 of this Act unless expressly
stated in this Act.
(Source: P.A. 103-1001, eff. 8-9-24; 104-6, eff. 7-1-25.)
(35 ILCS 143/10-10)
Sec. 10-10. Tax imposed.
(a) Except as otherwise provided in this Section with
respect to little cigars, on the first day of the third month
after the month in which this Act becomes law, a tax is imposed
on any person engaged in business as a distributor of tobacco
products, as defined in Section 10-5, at the rate of:
(1) (i) 18% of the wholesale price of tobacco products
sold or otherwise disposed of to retailers or consumers
located in this State prior to July 1, 2012;
(2) (ii) 36% of the wholesale price of tobacco
products sold or otherwise disposed of to retailers or
consumers located in this State beginning on July 1, 2012
and through June 30, 2025; except that, beginning on
January 1, 2013 and through June 30, 2025, the tax on moist
snuff shall be imposed at a rate of $0.30 per ounce, and a
proportionate tax at the like rate on all fractional parts
of an ounce, sold or otherwise disposed of to retailers or
consumers located in this State; and except that,

SB3019 Enrolled - 944 - LRB104 20255 HLH 33706 b
beginning July 1, 2019 and through June 30, 2025, the tax
on electronic cigarettes shall be imposed at the rate of
15% of the wholesale price of electronic cigarettes sold
or otherwise disposed of to retailers or consumers located
in this State; and
(3) (iii) 45% of the wholesale price of tobacco
products, including moist snuff and electronic cigarettes,
sold or otherwise disposed of to retailers or consumers
located in this State on and after July 1, 2025 and through
December 31, 2026; and .
(4) beginning on January 1, 2027, 45% of:
(A) the actual cost paid by a distributor or
remote retail seller for the tobacco product sold or
otherwise disposed of to a retailer or consumer in the
State; or
(B) if documentation of the actual cost paid by a
distributor or remote retail seller is not available
due to matters beyond the distributor or remote retail
seller's control, the actual cost list paid by a
distributor or remote retail seller for the tobacco
product sold or otherwise disposed of to retailers or
consumers located in this State for which
documentation is not available.
The tax imposed under this subsection (a) is in addition
to all other occupation or privilege taxes imposed by the
State of Illinois, by any political subdivision thereof, or by

SB3019 Enrolled - 945 - LRB104 20255 HLH 33706 b
any municipal corporation. However, the tax is not imposed
upon any activity in that business in interstate commerce or
otherwise, to the extent to which that activity may not, under
the Constitution and Statutes of the United States, be made
the subject of taxation by this State, and except that,
beginning July 1, 2013, the tax on little cigars shall be
imposed at the same rate, and the proceeds shall be
distributed in the same manner, as the tax imposed on
cigarettes under the Cigarette Tax Act. The tax is also not
imposed on sales made to the United States or any entity
thereof.
If the Department determines that the actual cost list for
a tobacco product is not indicative of the actual cost paid for
the tobacco product, then the Department may determine the
distributor's or remote retail seller's tax liability for the
tobacco product based on the distributor's or remote retail
seller's books and records or from information on invoices
obtained from the distributor's or remote retail seller's
suppliers.
(a-5) Beginning January 1, 2027, the tax imposed under
subsection (a) is also imposed upon persons who are engaged in
business as remote retail sellers of cigars, pipe tobacco, or
alternative nicotine products and who make sales to Illinois
consumers on which the tax has not been paid by a distributor,
if the cumulative gross receipts of the remote retail seller
from sales of tangible personal property to consumers in this

SB3019 Enrolled - 946 - LRB104 20255 HLH 33706 b
State are $100,000 or more.
A remote retail seller that meets or exceeds the threshold
in this subsection shall be liable for taxes imposed by this
Act on all sales made by that remote retail seller of taxable
products under this Act to Illinois consumers on which the tax
has not been paid by a distributor.
The remote retail seller shall determine on a quarterly
basis, ending on the last day of March, June, September, and
December, whether it meets the threshold of this subsection
for the preceding 12-month period. If the remote retail seller
meets the threshold for a 12-month period, then the remote
retail seller is considered to be engaged in business as a
remote retail seller in this State and is required to collect
and remit the tax imposed under this Act and to file all
applicable returns for the next 12-month period. At the end of
that 12-month period, the remote retail seller shall determine
whether the remote retail seller met the threshold for the
preceding 12-month period. If the remote retail seller met the
threshold for the preceding 12-month period, the remote retail
seller is considered to be engaged in business as a remote
retail seller in this State and is required to collect and
remit the tax imposed under this Act and file returns for the
subsequent year. If, at the end of a one-year period, a remote
retail seller that was required to collect and remit the tax
imposed under this Act determines that the remote retail
seller did not meet the threshold during the preceding

SB3019 Enrolled - 947 - LRB104 20255 HLH 33706 b
12-month period, then the remote retail seller shall certify
to the Department, in the form and manner required by the
Department, that the remote retail seller did not meet the
threshold during the preceding 12-month period and shall
subsequently determine on a quarterly basis, ending on the
last day of March, June, September, and December, whether the
remote retail seller meets the threshold for the preceding
12-month period.
(b) Notwithstanding subsection (a) of this Section,
stamping distributors of packages of little cigars containing
20 or 25 little cigars sold or otherwise disposed of in this
State shall remit the tax by purchasing tax stamps from the
Department and affixing them to packages of little cigars in
the same manner as stamps are purchased and affixed to
cigarettes under the Cigarette Tax Act, unless the stamping
distributor sells or otherwise disposes of those packages of
little cigars to another stamping distributor. Only persons
meeting the definition of "stamping distributor" contained in
Section 10-5 of this Act may affix stamps to packages of little
cigars containing 20 or 25 little cigars. Stamping
distributors may not sell or dispose of little cigars at
retail to consumers or users at locations where stamping
distributors affix stamps to packages of little cigars
containing 20 or 25 little cigars.
(c) The impact of the tax levied by this Act is imposed
upon distributors engaged in the business of selling tobacco

SB3019 Enrolled - 948 - LRB104 20255 HLH 33706 b
products to retailers or consumers in this State. Beginning
January 1, 2027, the impact of the tax levied by this Act is
also imposed upon remote retail sellers that meet the
threshold in subsection (a-5) of this Section. A remote retail
seller shall pay the tax on all sales of cigars, pipe tobacco,
and alternative nicotine products to consumers in this State
on which the tax has not been paid by a distributor. Whenever a
stamping distributor brings or causes to be brought into this
State from without this State, or purchases from without or
within this State, any packages of little cigars containing 20
or 25 little cigars upon which there are no tax stamps affixed
as required by this Act, for purposes of resale or disposal in
this State to a person not a stamping distributor, then such
stamping distributor shall pay the tax to the Department and
add the amount of the tax to the price of such packages sold by
such stamping distributor. Payment of the tax shall be
evidenced by a stamp or stamps affixed to each package of
little cigars containing 20 or 25 little cigars.
Stamping distributors paying the tax to the Department on
packages of little cigars containing 20 or 25 little cigars
sold to other distributors, wholesalers or retailers shall add
the amount of the tax to the price of the packages of little
cigars containing 20 or 25 little cigars sold by such stamping
distributors.
(d) Beginning on January 1, 2013, the tax rate imposed per
ounce of moist snuff may not exceed 15% of the tax imposed upon

SB3019 Enrolled - 949 - LRB104 20255 HLH 33706 b
a package of 20 cigarettes pursuant to the Cigarette Tax Act.
(d-5) Notwithstanding any other provision of this Section,
beginning January 1, 2027 and continuing through December 31,
2029, the tax per cigar sold or otherwise disposed of shall not
exceed $0.75 per cigar. This subsection does not apply to
little cigars.
(e) All moneys received by the Department under this Act
from sales occurring prior to July 1, 2012 shall be paid into
the Long-Term Care Provider Fund of the State Treasury. Of the
moneys received by the Department from sales occurring on or
after July 1, 2012, except for moneys received from the tax
imposed on the sale of little cigars, 50% shall be paid into
the Long-Term Care Provider Fund and 50% shall be paid into the
Healthcare Provider Relief Fund. Beginning July 1, 2013, all
moneys received by the Department under this Act from the tax
imposed on little cigars shall be distributed as provided in
Section 2 of the Cigarette Tax Act. Of the moneys received by
the Department under this Act from sales occurring on or after
July 1, 2025, except for moneys received from the tax imposed
on the sale of little cigars, the first $5,000,000 collected
in each fiscal year shall be paid into the Tobacco Settlement
Recovery Fund for tobacco health initiatives at the Department
of Public Health, and the remainder of the moneys collected in
each fiscal year shall be paid as follows: 50% shall be paid
into the Long-Term Care Provider Fund; and 50% shall be paid
into the Healthcare Provider Relief Fund.

SB3019 Enrolled - 950 - LRB104 20255 HLH 33706 b
(Source: P.A. 104-6, eff. 7-1-25.)
(35 ILCS 143/10-24 new)
Sec. 10-24. Remote retail seller's license. Beginning on
January 1, 2027, it is unlawful for any person who meets the
threshold established in subsection (a-5) of Section 10-10 to
engage in business as a remote retail seller within the
meaning of this Act without first having obtained a license to
do so from the Department. Application for that license shall
be made to the Department, by electronic means, in a form
prescribed by the Department. Each applicant for a license
shall furnish to the Department, in an electronic format
established by the Department, the following information:
(1) the name and address of the applicant;
(2) the address of the location at which the applicant
proposes to engage in business as a remote retail seller
outside this State; and
(3) such other additional information as the
Department may lawfully require by rule.
Beginning on January 1, 2027, in addition to obtaining a
license to engage in business as a remote retail seller in this
State, no remote retail seller who meets the threshold
established in subsection (a-5) of Section 10-10 may engage in
business as a remote retail seller within the meaning of this
Act without registering under the Retailers' Occupation Tax
Act pursuant to Section 2a of that Act.

SB3019 Enrolled - 951 - LRB104 20255 HLH 33706 b
A separate annual license shall be obtained for each place
of business at which a person who is required to procure a
remote retail seller's license under this Section proposes to
engage in business as a remote retail seller under this Act.
All licenses issued by the Department under this Section shall
be valid for a period not to exceed one year after issuance
unless sooner revoked, canceled, or suspended as provided in
this Act. All licenses must be renewed on an annual basis. An
application submitted by a remote retail seller shall include
an acknowledgement consenting to the jurisdiction of the
Department and the courts of this State concerning the
enforcement of this Act and any related laws, rules, and
regulations, including authorizing the Department of Revenue
to conduct inspections and audits for the purpose of ensuring
compliance with this Act and to issue penalties for violations
of this Act.
Each remote retail seller must perform age verification
through an independent, third-party age verification service
that compares information available from a commercially
available database, or aggregate of databases, that are
regularly used by government agencies and businesses for the
purpose of age and identity verification to the personal
information entered by the individual during the ordering
process that establishes that the individual is of age.
The following are ineligible to receive a remote retail
seller's license under this Act:

SB3019 Enrolled - 952 - LRB104 20255 HLH 33706 b
(1) a person who has been convicted of a felony under
any federal or State law for smuggling cigarettes or
tobacco products or tobacco tax evasion, if the
Department, after investigation and a hearing if requested
by the applicant, determines that such person has not been
sufficiently rehabilitated to warrant the public trust;
(2) a corporation, if any officer, manager or director
thereof, or any stockholder or stockholders owning in the
aggregate more than 5% of the stock of such corporation,
would not be eligible to receive a license under this Act
for any reason; or
(3) any person who is in default to the State of
Illinois for moneys due under this Act or any other tax Act
administered by the Department.
The Department, upon receipt of an application, in proper
form, from a person who is eligible to receive a remote retail
seller's license under this Act, shall issue to such applicant
a license in form as prescribed by the Department, which
license shall permit the applicant to which it is issued to
engage in business as a remote retail seller under this Act at
the place shown in the remote retail seller's application. No
license issued under this Section is transferable or
assignable. A person who obtains a license as a remote retail
seller who ceases to do business as specified in the license,
or who never commenced business, or whose license is suspended
or revoked, shall immediately surrender the license to the

SB3019 Enrolled - 953 - LRB104 20255 HLH 33706 b
Department.
The Department may, in its discretion, upon application,
authorize the payment of the tax imposed under Section 10-10
by any remote retail seller not otherwise subject to the tax
imposed under this Act who, to the satisfaction of the
Department, furnishes adequate security to ensure payment of
the tax. The remote retail seller shall be issued, without
charge, a license to remit the tax. When so authorized, it
shall be the duty of the remote retail seller to remit the tax
imposed upon the actual cost or actual cost list price of the
cigars, pipe tobacco, or alternative nicotine products sold or
otherwise disposed of to consumers located in this State, in
the same manner and subject to the same requirements as any
other remote retail seller required to be licensed under this
Act.
Any person aggrieved by any decision of the Department
under this Section may, within 30 days after notice of the
decision, protest and request a hearing. Upon receiving a
request for a hearing, the Department shall give notice to the
person requesting the hearing of the time and place fixed for
the hearing and shall hold a hearing in conformity with the
provisions of this Act and then issue its final administrative
decision in the matter to that person. In the absence of a
protest and request for a hearing within 30 days, the
Department's decision shall become final without any further
determination being made or notice given.

SB3019 Enrolled - 954 - LRB104 20255 HLH 33706 b
(35 ILCS 143/10-25)
Sec. 10-25. License actions.
(a) The Department may, after notice and a hearing,
revoke, cancel, or suspend the license of any distributor, or
retailer, or remote retail seller who violates any of the
provisions of this Act, fails to keep books and records as
required under this Act, fails to make books and records
available for inspection upon demand by a duly authorized
employee of the Department, or violates a rule or regulation
of the Department for the administration and enforcement of
this Act. The notice shall specify the alleged violation or
violations upon which the revocation, cancellation, or
suspension proceeding is based.
(a-5) The Department may, after notice and a hearing,
revoke, cancel, or suspend the license of a distributor or
remote retail seller that fails to properly register and remit
tax under the Retailers' Occupation Tax Act for all tobacco
products that are sold to consumers in this State.
(a-10) The Department may, after notice and a hearing,
revoke, cancel, or suspend the license of a distributor or
remote retail seller who is found in violation of any law,
rule, or regulation of the state where the business is located
as listed on the license issued by the Department. The notice
shall specify the alleged violation or violations upon which
the revocation, cancellation, or suspension proceeding is

SB3019 Enrolled - 955 - LRB104 20255 HLH 33706 b
based.
(b) The Department may revoke, cancel, or suspend the
license of any distributor or remote retail seller for a
violation of the Tobacco Products Manufacturers' Escrow
Enforcement Act of 2003 as provided in Section 30 of that Act.
(c) If the retailer or remote retail seller has a training
program that facilitates compliance with minimum-age tobacco
laws, the Department shall suspend for 3 days the license of
that retailer or remote retail seller for a fourth or
subsequent violation of the Prevention of Tobacco Use by
Persons under 21 Years of Age and Sale and Distribution of
Tobacco Products Act, as provided in subsection (a) of Section
2 of that Act. For the purposes of this Section, any violation
of subsection (a) of Section 2 of the Prevention of Tobacco Use
by Persons under 21 Years of Age and Sale and Distribution of
Tobacco Products Act occurring at the retailer's or remote
retail seller's licensed location, during a 24-month period,
shall be counted as a violation against the retailer or remote
retail seller.
If the retailer or remote retail seller does not have a
training program that facilitates compliance with minimum-age
tobacco laws, the Department shall suspend for 3 days the
license of that retailer or remote retail seller for a second
violation of the Prevention of Tobacco Use by Persons under 21
Years of Age and Sale and Distribution of Tobacco Products
Act, as provided in subsection (a-5) of Section 2 of that Act.

SB3019 Enrolled - 956 - LRB104 20255 HLH 33706 b
If the retailer or remote retail seller does not have a
training program that facilitates compliance with minimum-age
tobacco laws, the Department shall suspend for 7 days the
license of that retailer or remote retail seller for a third
violation of the Prevention of Tobacco Use by Persons under 21
Years of Age and Sale and Distribution of Tobacco Products
Act, as provided in subsection (a-5) of Section 2 of that Act.
If the retailer or remote retail seller does not have a
training program that facilitates compliance with minimum-age
tobacco laws, the Department shall suspend for 30 days the
license of a retailer or remote retail seller for a fourth or
subsequent violation of the Prevention of Tobacco Use by
Persons under 21 Years of Age and Sale and Distribution of
Tobacco Products Act, as provided in subsection (a-5) of
Section 2 of that Act.
A training program that facilitates compliance with
minimum-age tobacco laws must include at least the following
elements: (i) it must explain that only individuals displaying
valid identification demonstrating that they are 21 years of
age or older shall be eligible to purchase cigarettes or
tobacco products and (ii) it must explain where a clerk can
check identification for a date of birth. The training may be
conducted electronically. Each retailer or remote retail
seller that has a training program shall require each employee
who completes the training program to sign a form attesting
that the employee has received and completed tobacco training.

SB3019 Enrolled - 957 - LRB104 20255 HLH 33706 b
The form shall be kept in the employee's file and may be used
to provide proof of training.
(d) The Department may, by application to any circuit
court, obtain an injunction restraining any person who engages
in business as a distributor or remote retail seller of
tobacco products without a license (either because his or her
license has been revoked, canceled, or suspended or because of
a failure to obtain a license in the first instance) from
engaging in that business until that person, as if that person
were a new applicant for a license, complies with all of the
conditions, restrictions, and requirements of Section 10-20 or
10-24 of this Act and qualifies for and obtains a license.
Refusal or neglect to obey the order of the court may result in
punishment for contempt.
(Source: P.A. 104-6, eff. 6-16-25.)
(35 ILCS 143/10-30)
Sec. 10-30. Returns.
(a) Every distributor shall, on or before the 15th day of
each month, file a return with the Department covering the
preceding calendar month. Through June 30, 2025, the return
shall disclose the wholesale price for all tobacco products
other than moist snuff and the quantity in ounces of moist
snuff sold or otherwise disposed of and other information that
the Department may reasonably require. Beginning July 1, 2025
and through December 1, 2026, the return shall disclose the

SB3019 Enrolled - 958 - LRB104 20255 HLH 33706 b
wholesale price for all tobacco products, including moist
snuff, sold or otherwise disposed of and other information
that the Department may reasonably require. Beginning January
1, 2027, the return shall disclose the actual cost or actual
cost list price for all tobacco products, other than little
cigars, sold or otherwise disposed of and other information
that the Department may reasonably require. Information that
the Department may reasonably require includes information
related to the uniform regulation and taxation of tobacco
products.
(a-5) Beginning February 1, 2027, every remote retail
seller shall, on or before the 15th day of each month, file a
return with the Department covering the preceding calendar
month. The remote retail seller's return must report all
cigars, pipe tobacco, or alternative nicotine products brought
in or caused to be brought in from outside the State or shipped
or transported to consumers within the State during the
preceding calendar month. The return must include further
information as the Department may prescribe and must show the
total actual cost or actual cost list price paid by a remote
retail seller for a tobacco product for the previous calendar
month. The return must show the amount of tax due for all
remote retail sales made from outside the State, to a consumer
within the State during the preceding calendar month. It is
the intent and purpose of this amendatory Act of the 104th
General Assembly that the remote retail seller remit the tax

SB3019 Enrolled - 959 - LRB104 20255 HLH 33706 b
at the time the return is filed. It is further the intent and
purpose of this amendatory Act of the 104th General Assembly
to impose the tax under this Act only once on all tobacco
products sold in the State.
(b) In addition to the information required under
subsection (a), on or before the 15th day of each month,
covering the preceding calendar month, each stamping
distributor shall report the quantity of little cigars sold or
otherwise disposed of, including the number of packages of
little cigars sold or disposed of during the month containing
20 or 25 little cigars.
(c) At the time when any return of any distributor is due
to be filed with the Department, the distributor shall also
remit to the Department the tax liability that the distributor
has incurred for transactions occurring in the preceding
calendar month.
(d) All returns and supporting schedules required to be
filed under this Section and all payments required to be made
under this Section shall be by electronic means in the form
prescribed by the Department.
(e) If any payment provided for in this Section exceeds
the distributor's liabilities under this Act, as shown on an
original return, the distributor may credit such excess
payment against liability subsequently to be remitted to the
Department under this Act, in accordance with reasonable rules
adopted by the Department.

SB3019 Enrolled - 960 - LRB104 20255 HLH 33706 b
(Source: P.A. 103-592, eff. 1-1-25; 104-6, Article 10, Section
10-10, eff. 7-1-25; 104-6, Article 40, Section 40-30, eff.
1-1-26; revised 11-19-25.)
(35 ILCS 143/10-35)
Sec. 10-35. Record keeping.
(a) Every distributor, as defined in Section 10-5, shall
keep complete and accurate records of tobacco products held,
purchased, manufactured, brought in or caused to be brought in
from without the State, and tobacco products sold, or
otherwise disposed of, and shall preserve and keep all
invoices, bills of lading, sales records, and copies of bills
of sale, the wholesale price, and, beginning January 1, 2027,
the actual cost or actual cost list price for tobacco products
sold or otherwise disposed of, an inventory of tobacco
products prepared as of December 31 of each year or as of the
last day of the distributor's fiscal year if the distributor
he or she files federal income tax returns on the basis of a
fiscal year, and other pertinent papers and documents relating
to the manufacture, purchase, sale, or disposition of tobacco
products. Every sales invoice issued by a licensed distributor
to a retailer in this State shall contain the distributor's
Tobacco Products License number unless the distributor has
been granted a waiver by the Department in response to a
written request in cases where (i) the distributor sells
little cigars or other tobacco products only to licensed

SB3019 Enrolled - 961 - LRB104 20255 HLH 33706 b
retailers that are wholly-owned by the distributor or owned by
a wholly-owned subsidiary of the distributor; (ii) the
licensed retailer obtains little cigars or other tobacco
products only from the distributor requesting the waiver; and
(iii) the distributor affixes the tax stamps to the original
packages of little cigars or has or will pay the tax on the
other tobacco products sold to the licensed retailer. The
distributor shall file a written request with the Department,
and, if the Department determines that the distributor meets
the conditions for a waiver, the Department shall grant the
waiver.
(b) Every retailer, as defined in Section 10-5, whether or
not the retailer has obtained a retailer's license pursuant to
Section 4g, shall keep complete and accurate records of
tobacco products held, purchased, sold, or otherwise disposed
of, and shall preserve and keep all invoices, bills of lading,
sales records, and copies of bills of sale, returns and other
pertinent papers and documents relating to the purchase, sale,
or disposition of tobacco products. Such records need not be
maintained on the licensed premises, but must be maintained in
the State of Illinois; however, if access is available
electronically, the records may be maintained out of state.
However, all original invoices or copies thereof covering
purchases of tobacco products must be retained on the licensed
premises for a period of 90 days after such purchase, unless
the Department has granted a waiver in response to a written

SB3019 Enrolled - 962 - LRB104 20255 HLH 33706 b
request in cases where records are kept at a central business
location within the State of Illinois or in cases where
records that are available electronically are maintained out
of state. The Department shall adopt rules regarding the
eligibility for a waiver, revocation of a waiver, and
requirements and standards for maintenance and accessibility
of records located at a central location out-of-State pursuant
to a waiver provided under this Section.
(b-5) Every remote retail seller, as defined in Section
10-5 shall keep complete and accurate records of tobacco
products held, purchased, sold, or otherwise disposed of and
shall preserve and keep all invoices, bills of lading, sales
records, and copies of bills of sale, returns and other
pertinent papers and documents relating to the purchase, sale,
or disposition of tobacco products. Such records must be on
the remote retail seller's premises but need not be maintained
in the State of Illinois; however, remote retail sellers shall
also provide access electronically. However, all original
invoices or copies thereof covering purchases of tobacco
products must be retained on the remote retail seller's
premises until the expiration of the period with respect to
which the Department is authorized to issue a notice of tax
liability.
(c) Books, records, papers, and documents that are
required by this Act to be kept shall, at all times during the
usual business hours of the day, be subject to inspection by

SB3019 Enrolled - 963 - LRB104 20255 HLH 33706 b
the Department or its duly authorized agents and employees.
The books, records, papers, and documents for any period with
respect to which the Department is authorized to issue a
notice of tax liability shall be preserved until the
expiration of that period.
(Source: P.A. 99-192, eff. 1-1-16; 100-940, eff. 8-17-18.)
(35 ILCS 143/10-37)
Sec. 10-37. Proof of payment of tax imposed by this Act.
Every licensed distributor of tobacco products in this State
is required to show proof of the tax having been paid as
required by this Act by displaying its Tobacco Products
License number on every sales invoice issued to a retailer in
this State. Every licensed remote retail seller of tobacco
products in this State is required to show proof of the tax
having been paid as required by this Act by displaying its
Tobacco Products License number on every sales invoice issued
to a consumer in this State. No retailer shall possess tobacco
products without either a proper invoice indicating that the
tobacco products tax was paid by a distributor for the tobacco
products in the retailer's possession or other proof that the
tax was paid by the retailer if it has purchased tobacco
products on which tax has not been paid as required by this
Act. Failure to comply with the provisions of this paragraph
may be grounds for revocation of a distributor's, remote
retail seller's, or retailer's license in accordance with

SB3019 Enrolled - 964 - LRB104 20255 HLH 33706 b
Section 10-25 of this Act or Section 6 of the Cigarette Tax
Act. In addition, the Department may impose a civil penalty
not to exceed $1,000 for the first violation and $3,000 for
each subsequent violation, which shall be deposited into the
Tax Compliance and Administration Fund.
(Source: P.A. 100-940, eff. 8-17-18.)
(35 ILCS 143/10-38)
Sec. 10-38. Presumption for unlicensed distributors,
remote retail sellers, or persons. Whenever any person obtains
tobacco products from an unlicensed in-state or out-of-state
distributor, remote retail seller, or person, a prima facie
presumption shall arise that the tax imposed by this Act on
such tobacco products has not been paid in violation of this
Act. Invoices or other documents kept in the normal course of
business in the possession of a person reflecting purchases of
tobacco products from an unlicensed in-state or out-of-state
distributor, remote retail seller, or person or invoices or
other documents kept in the normal course of business obtained
by the Department from in-state or out-of-state distributors,
remote retail sellers, or persons, are sufficient to raise the
presumption that the tax imposed by this Act has not been paid.
If a presumption is raised, the Department may assess tax,
penalty, and interest on the tobacco products. In addition,
any person who violates this Section is liable to pay to the
Department, for deposit in the Tax Compliance and

SB3019 Enrolled - 965 - LRB104 20255 HLH 33706 b
Administration Fund, a penalty of $1,000 for the first
violation and $3,000 for any subsequent violation. The
Department may adopt rules to administer the penalties under
this Section.
(Source: P.A. 100-940, eff. 8-17-18.)
(35 ILCS 143/10-45)
Sec. 10-45. Incorporation by reference. All of the
provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h,
5i, 5j, 6, 6a, 6b, 6c, 8, 9, 10, 11, 11a, and 12 of the
Retailers' Occupation Tax Act, and all applicable provisions
of the Uniform Penalty and Interest Act that are not
inconsistent with this Act, apply to distributors and remote
retail sellers of tobacco products to the same extent as if
those provisions were included in this Act. References in the
incorporated Sections of the Retailers' Occupation Tax Act to
retailers, to sellers, or to persons engaged in the business
of selling tangible personal property mean distributors or
remote retail sellers when used in this Act. References in the
incorporated Sections to sales of tangible personal property
mean sales of tobacco products when used in this Act.
All of the provisions of Sections 7, 8, 8a, 16, 18a, 18b,
18c, 22, 23, 24, 26, 27, and 28a of the Cigarette Tax Act which
are not inconsistent with this Act shall apply, as far as
practicable, to the subject matter of this Act to the same
extent as if those provisions were included in this Act.

SB3019 Enrolled - 966 - LRB104 20255 HLH 33706 b
References in the incorporated Sections to sales of cigarettes
mean sales of little cigars in packages of 20 or 25 little
cigars.
(Source: P.A. 98-273, eff. 8-9-13.)
(35 ILCS 143/10-50)
Sec. 10-50. Violations and penalties. When the amount due
is under $300, any distributor or remote retail seller who
fails to file a return, willfully fails or refuses to make any
payment to the Department of the tax imposed by this Act, or
files a fraudulent return, or any officer or agent of a
corporation engaged in the business of distributing or
engaging in remote retail sales of tobacco products to
retailers or and consumers located in this State who signs a
fraudulent return filed on behalf of the corporation, or any
accountant or other agent who knowingly enters false
information on the return of any taxpayer under this Act is
guilty of a Class 4 felony.
Any person who violates any provision of Section 10-20,
10-21, or 10-22, or 10-24 of this Act, fails to keep books and
records as required under this Act, or willfully violates a
rule or regulation of the Department for the administration
and enforcement of this Act is guilty of a Class 4 felony. A
person commits a separate offense on each day that he or she
engages in business in violation of Section 10-20, 10-21, or
10-22, or 10-24 of this Act. If a person fails to produce the

SB3019 Enrolled - 967 - LRB104 20255 HLH 33706 b
books and records for inspection by the Department upon
request, a prima facie presumption shall arise that the person
has failed to keep books and records as required under this
Act. A person who is unable to rebut this presumption is in
violation of this Act and is subject to the penalties provided
in this Section.
When the amount due is under $300, any person who accepts
money that is due to the Department under this Act from a
taxpayer for the purpose of acting as the taxpayer's agent to
make the payment to the Department, but who fails to remit the
payment to the Department when due, is guilty of a Class 4
felony.
Any person who violates any provision of Sections 10-20,
10-21 and 10-22 of this Act, fails to keep books and records as
required under this Act, or willfully violates a rule or
regulation of the Department for the administration and
enforcement of this Act is guilty of a business offense and may
be fined up to $5,000. If a person fails to produce books and
records for inspection by the Department upon request, a prima
facie presumption shall arise that the person has failed to
keep books and records as required under this Act. A person who
is unable to rebut this presumption is in violation of this Act
and is subject to the penalties provided in this Section. A
person commits a separate offense on each day that he or she
engages in business in violation of Sections 10-20, 10-21 and
10-22 of this Act.

SB3019 Enrolled - 968 - LRB104 20255 HLH 33706 b
When the amount due is $300 or more, any distributor or
remote retail seller who files, or causes to be filed, a
fraudulent return, or any officer or agent of a corporation
engaged in the business of distributing or engaging in remote
retail sales of tobacco products to retailers or and consumers
located in this State who files or causes to be filed or signs
or causes to be signed a fraudulent return filed on behalf of
the corporation, or any accountant or other agent who
knowingly enters false information on the return of any
taxpayer under this Act is guilty of a Class 3 felony.
When the amount due is $300 or more, any person engaged in
the business of distributing or engaging in remote retail
sales of tobacco products to retailers or and consumers
located in this State who fails to file a return, willfully
fails or refuses to make any payment to the Department of the
tax imposed by this Act, or accepts money that is due to the
Department under this Act from a taxpayer for the purpose of
acting as the taxpayer's agent to make payment to the
Department but fails to remit such payment to the Department
when due is guilty of a Class 3 felony.
When the amount due is under $300, any retailer who fails
to file a return, willfully fails or refuses to make any
payment to the Department of the tax imposed by this Act, or
files a fraudulent return, or any officer or agent of a
corporation engaged in the retail business of selling tobacco
products to purchasers of tobacco products for use and

SB3019 Enrolled - 969 - LRB104 20255 HLH 33706 b
consumption located in this State who signs a fraudulent
return filed on behalf of the corporation, or any accountant
or other agent who knowingly enters false information on the
return of any taxpayer under this Act is guilty of a Class A
misdemeanor for a first offense and a Class 4 felony for each
subsequent offense.
When the amount due is $300 or more, any retailer who fails
to file a return, willfully fails or refuses to make any
payment to the Department of the tax imposed by this Act, or
files a fraudulent return, or any officer or agent of a
corporation engaged in the retail business of selling tobacco
products to purchasers of tobacco products for use and
consumption located in this State who signs a fraudulent
return filed on behalf of the corporation, or any accountant
or other agent who knowingly enters false information on the
return of any taxpayer under this Act is guilty of a Class 4
felony.
Any person whose principal place of business is in this
State and who is charged with a violation under this Section
shall be tried in the county where his or her principal place
of business is located unless he or she asserts a right to be
tried in another venue. If the taxpayer does not have his or
her principal place of business in this State, however, the
hearing must be held in Sangamon County unless the taxpayer
asserts a right to be tried in another venue.
Any taxpayer or agent of a taxpayer who with the intent to

SB3019 Enrolled - 970 - LRB104 20255 HLH 33706 b
defraud purports to make a payment due to the Department by
issuing or delivering a check or other order upon a real or
fictitious depository for the payment of money, knowing that
it will not be paid by the depository, is guilty of a deceptive
practice in violation of Section 17-1 of the Criminal Code of
2012.
A prosecution for a violation described in this Section
may be commenced within 3 years after the commission of the act
constituting the violation.
(Source: P.A. 100-201, eff. 8-18-17; 100-940, eff. 8-17-18.)
ARTICLE 115
Section 115-5. The Liquor Control Act of 1934 is amended
by changing Section 8-1 as follows:
(235 ILCS 5/8-1)
Sec. 8-1. A tax is imposed upon the privilege of engaging
in business as a manufacturer or as an importing distributor
of alcoholic liquor, other than beer, at the rate of $0.185 per
gallon until September 1, 2009 and $0.231 per gallon beginning
September 1, 2009 for cider containing not less than 0.5%
alcohol by volume nor more than 7% alcohol by volume, $0.73 per
gallon until September 1, 2009 and $1.39 per gallon beginning
September 1, 2009 for alcoholic liquor containing not more
than 20% alcohol by volume wine other than cider containing

SB3019 Enrolled - 971 - LRB104 20255 HLH 33706 b
less than 7% alcohol by volume, and $4.50 per gallon until
September 1, 2009 and $8.55 per gallon beginning September 1,
2009 on alcoholic liquor containing more than 20% alcohol by
volume alcohol and spirits manufactured and sold or used by
such manufacturer, or as agent for any other person, or sold or
used by such importing distributor, or as agent for any other
person. A tax is imposed upon the privilege of engaging in
business as a manufacturer of beer or as an importing
distributor of beer at the rate of $0.185 per gallon until
September 1, 2009 and $0.231 per gallon beginning September 1,
2009 on all beer, regardless of alcohol by volume,
manufactured and sold or used by such manufacturer, or as
agent for any other person, or sold or used by such importing
distributor, or as agent for any other person. Any brewer
manufacturing beer in this State shall be entitled to and
given a credit or refund of 75% of the tax imposed on each
gallon of beer up to 4.9 million gallons per year in any given
calendar year for tax paid or payable on beer produced and sold
in the State of Illinois.
For purposes of this Section, "beer" means beer, ale,
porter, stout, and other similar fermented beverages of any
name or description containing one-half of one percent or more
of alcohol by volume, brewed or produced from malt, wholly or
in part, or from any substitute for malt.
For the purpose of this Section, "cider" means any
alcoholic beverage obtained by the alcohol fermentation of the

SB3019 Enrolled - 972 - LRB104 20255 HLH 33706 b
juice of apples or pears including, but not limited to,
flavored, sparkling, or carbonated cider.
The credit or refund created by this Act shall apply to all
beer taxes in the calendar years 1982 through 1986.
The increases made by this amendatory Act of the 91st
General Assembly in the rates of taxes imposed under this
Section shall apply beginning on July 1, 1999.
A tax at the rate of 1� per gallon on beer and 48� per
gallon on alcohol and spirits is also imposed upon the
privilege of engaging in business as a retailer or as a
distributor who is not also an importing distributor with
respect to all beer and all alcohol and spirits owned or
possessed by such retailer or distributor when this amendatory
Act of 1969 becomes effective, and with respect to which the
additional tax imposed by this amendatory Act upon
manufacturers and importing distributors does not apply.
Retailers and distributors who are subject to the additional
tax imposed by this paragraph of this Section shall be
required to inventory such alcoholic liquor and to pay this
additional tax in a manner prescribed by the Department.
The provisions of this Section shall be construed to apply
to any importing distributor engaging in business in this
State, whether licensed or not.
However, such tax is not imposed upon any such business as
to any alcoholic liquor shipped outside Illinois by an
Illinois licensed manufacturer or importing distributor, nor

SB3019 Enrolled - 973 - LRB104 20255 HLH 33706 b
as to any alcoholic liquor delivered in Illinois by an
Illinois licensed manufacturer or importing distributor to a
purchaser for immediate transportation by the purchaser to
another state into which the purchaser has a legal right,
under the laws of such state, to import such alcoholic liquor,
nor as to any alcoholic liquor other than beer sold by one
Illinois licensed manufacturer or importing distributor to
another Illinois licensed manufacturer or importing
distributor to the extent to which the sale of alcoholic
liquor other than beer by one Illinois licensed manufacturer
or importing distributor to another Illinois licensed
manufacturer or importing distributor is authorized by the
licensing provisions of this Act, nor to alcoholic liquor
whether manufactured in or imported into this State when sold
to a "non-beverage user" licensed by the State for use in the
manufacture of any of the following when they are unfit for
beverage purposes:
Patent and proprietary medicines and medicinal,
antiseptic, culinary and toilet preparations;
Flavoring extracts and syrups and food products;
Scientific, industrial and chemical products, excepting
denatured alcohol;
Or for scientific, chemical, experimental or mechanical
purposes;
Nor is the tax imposed upon the privilege of engaging in
any business in interstate commerce or otherwise, which

SB3019 Enrolled - 974 - LRB104 20255 HLH 33706 b
business may not, under the Constitution and Statutes of the
United States, be made the subject of taxation by this State.
The tax herein imposed shall be in addition to all other
occupation or privilege taxes imposed by the State of Illinois
or political subdivision thereof.
If any alcoholic liquor manufactured in or imported into
this State is sold to a licensed manufacturer or importing
distributor by a licensed manufacturer or importing
distributor to be used solely as an ingredient in the
manufacture of any beverage for human consumption, the tax
imposed upon such purchasing manufacturer or importing
distributor shall be reduced by the amount of the taxes which
have been paid by the selling manufacturer or importing
distributor under this Act as to such alcoholic liquor so used
to the Department of Revenue.
If any person received any alcoholic liquors from a
manufacturer or importing distributor, with respect to which
alcoholic liquors no tax is imposed under this Article, and
such alcoholic liquor shall thereafter be disposed of in such
manner or under such circumstances as may cause the same to
become the base for the tax imposed by this Article, such
person shall make the same reports and returns, pay the same
taxes and be subject to all other provisions of this Article
relating to manufacturers and importing distributors.
Nothing in this Article shall be construed to require the
payment to the Department of the taxes imposed by this Article

SB3019 Enrolled - 975 - LRB104 20255 HLH 33706 b
more than once with respect to any quantity of alcoholic
liquor sold or used within this State.
No tax is imposed by this Act on sales of alcoholic liquor
by Illinois licensed foreign importers to Illinois licensed
importing distributors.
Before July 1, 2025, all of the proceeds of the additional
tax imposed by Public Act 96-34 shall be deposited by the
Department into the Capital Projects Fund. The remainder of
the tax imposed by this Act shall be deposited by the
Department into the General Revenue Fund. On and after July 1,
2025, the proceeds from the tax imposed by this Act shall be
deposited as follows:
(1) 43% into the Capital Projects Fund; and
(2) 57% into the General Revenue Fund.
A manufacturer of beer that imports or transfers beer into
this State must comply with the provisions of this Section
with regard to the beer imported into this State.
The provisions of this Section 8-1 are severable under
Section 1.31 of the Statute on Statutes.
(Source: P.A. 104-6, eff. 6-16-25.)
ARTICLE 120
Section 120-5. The Illinois Income Tax Act is amended by
changing Section 203 as follows:

SB3019 Enrolled - 976 - LRB104 20255 HLH 33706 b
(35 ILCS 5/203) (from Ch. 120, par. 2-203)
Sec. 203. Base income defined.
(a) Individuals.
(1) In general. In the case of an individual, base
income means an amount equal to the taxpayer's adjusted
gross income for the taxable year as modified by paragraph
(2).
(2) Modifications. The adjusted gross income referred
to in paragraph (1) shall be modified by adding thereto
the sum of the following amounts:
(A) An amount equal to all amounts paid or accrued
to the taxpayer as interest or dividends during the
taxable year to the extent excluded from gross income
in the computation of adjusted gross income, except
stock dividends of qualified public utilities
described in Section 305(e) of the Internal Revenue
Code;
(B) An amount equal to the amount of tax imposed by
this Act to the extent deducted from gross income in
the computation of adjusted gross income for the
taxable year;
(C) An amount equal to the amount received during
the taxable year as a recovery or refund of real
property taxes paid with respect to the taxpayer's
principal residence under the Revenue Act of 1939 and
for which a deduction was previously taken under

SB3019 Enrolled - 977 - LRB104 20255 HLH 33706 b
subparagraph (L) of this paragraph (2) prior to July
1, 1991, the retrospective application date of Article
4 of Public Act 87-17. In the case of multi-unit or
multi-use structures and farm dwellings, the taxes on
the taxpayer's principal residence shall be that
portion of the total taxes for the entire property
which is attributable to such principal residence;
(D) An amount equal to the amount of the capital
gain deduction allowable under the Internal Revenue
Code, to the extent deducted from gross income in the
computation of adjusted gross income;
(D-5) An amount, to the extent not included in
adjusted gross income, equal to the amount of money
withdrawn by the taxpayer in the taxable year from a
medical care savings account and the interest earned
on the account in the taxable year of a withdrawal
pursuant to subsection (b) of Section 20 of the
Medical Care Savings Account Act or subsection (b) of
Section 20 of the Medical Care Savings Account Act of
2000;
(D-10) For taxable years ending after December 31,
1997, an amount equal to any eligible remediation
costs that the individual deducted in computing
adjusted gross income and for which the individual
claims a credit under subsection (l) of Section 201;
(D-15) For taxable years 2001 through 2025, an

SB3019 Enrolled - 978 - LRB104 20255 HLH 33706 b
amount equal to the bonus depreciation deduction taken
on the taxpayer's federal income tax return for the
taxable year under subsection (k) of Section 168 of
the Internal Revenue Code; for taxable years 2026 and
thereafter, an amount equal to the bonus depreciation
deduction taken on the taxpayer's federal income tax
return for the taxable year under subsection (k) or
(n) of Section 168 of the Internal Revenue Code;
(D-16) If the taxpayer sells, transfers, abandons,
or otherwise disposes of property for which the
taxpayer was required in any taxable year to make an
addition modification under subparagraph (D-15), then
an amount equal to the aggregate amount of the
deductions taken in all taxable years under
subparagraph (Z) with respect to that property.
If the taxpayer continues to own property through
the last day of the last tax year for which a
subtraction is allowed with respect to that property
under subparagraph (Z) and for which the taxpayer was
allowed in any taxable year to make a subtraction
modification under subparagraph (Z), then an amount
equal to that subtraction modification.
The taxpayer is required to make the addition
modification under this subparagraph only once with
respect to any one piece of property;
(D-17) An amount equal to the amount otherwise

SB3019 Enrolled - 979 - LRB104 20255 HLH 33706 b
allowed as a deduction in computing base income for
interest paid, accrued, or incurred, directly or
indirectly, (i) for taxable years ending on or after
December 31, 2004, to a foreign person who would be a
member of the same unitary business group but for the
fact that foreign person's business activity outside
the United States is 80% or more of the foreign
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business
group but for the fact that the person is prohibited
under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily
required to apportion business income under different
subsections of Section 304. The addition modification
required by this subparagraph shall be reduced to the
extent that dividends were included in base income of
the unitary group for the same taxable year and
received by the taxpayer or by a member of the
taxpayer's unitary business group (including amounts
included in gross income under Sections 951 through
964 of the Internal Revenue Code and amounts included
in gross income under Section 78 of the Internal
Revenue Code) with respect to the stock of the same
person to whom the interest was paid, accrued, or
incurred. For taxable years ending on and after

SB3019 Enrolled - 980 - LRB104 20255 HLH 33706 b
December 31, 2025, for purposes of applying this
paragraph in the case of a taxpayer to which Section
163(j) of the Internal Revenue Code applies for the
taxable year, the reduction in the amount of interest
for which a deduction is allowed by reason of Section
163(j) shall be treated as allocable first to persons
who are not foreign persons referred to in this
paragraph and then to such foreign persons.
For taxable years ending before December 31, 2025,
this paragraph shall not apply to the following:
(i) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person who
is subject in a foreign country or state, other
than a state which requires mandatory unitary
reporting, to a tax on or measured by net income
with respect to such interest; or
(ii) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer can establish, based on a
preponderance of the evidence, both of the
following:
(a) the person, during the same taxable
year, paid, accrued, or incurred, the interest
to a person that is not a related member, and
(b) the transaction giving rise to the
interest expense between the taxpayer and the

SB3019 Enrolled - 981 - LRB104 20255 HLH 33706 b
person did not have as a principal purpose the
avoidance of Illinois income tax, and is paid
pursuant to a contract or agreement that
reflects an arm's-length interest rate and
terms; or
(iii) the taxpayer can establish, based on
clear and convincing evidence, that the interest
paid, accrued, or incurred relates to a contract
or agreement entered into at arm's-length rates
and terms and the principal purpose for the
payment is not federal or Illinois tax avoidance;
or
(iv) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer establishes by clear and convincing
evidence that the adjustments are unreasonable; or
if the taxpayer and the Director agree in writing
to the application or use of an alternative method
of apportionment under Section 304(f).
For taxable years ending on or after December 31,
2025, this paragraph shall not apply to the following:
(i) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer can establish, based on a
preponderance of the evidence, both of the
following:

SB3019 Enrolled - 982 - LRB104 20255 HLH 33706 b
(a) the person, during the same taxable
year, paid, accrued, or incurred, the interest
to a person that is not a related member, and
(b) the transaction giving rise to the
interest expense between the taxpayer and the
person did not have as a principal purpose the
avoidance of Illinois income tax and is paid
pursuant to a contract or agreement that
reflects an arm's-length interest rate and
terms; or
(ii) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer establishes by clear and convincing
evidence that the adjustments are unreasonable; or
if the taxpayer and the Director agree in writing
to the application or use of an alternative method
of apportionment under Section 304(f).
Nothing in this subsection shall preclude the
Director from making any other adjustment otherwise
allowed under Section 404 of this Act for any tax year
beginning after the effective date of this amendment
provided such adjustment is made pursuant to
regulation adopted by the Department and such
regulations provide methods and standards by which the
Department will utilize its authority under Section
404 of this Act;

SB3019 Enrolled - 983 - LRB104 20255 HLH 33706 b
(D-18) An amount equal to the amount of intangible
expenses and costs otherwise allowed as a deduction in
computing base income, and that were paid, accrued, or
incurred, directly or indirectly, (i) for taxable
years ending on or after December 31, 2004, to a
foreign person who would be a member of the same
unitary business group but for the fact that the
foreign person's business activity outside the United
States is 80% or more of that person's total business
activity and (ii) for taxable years ending on or after
December 31, 2008, to a person who would be a member of
the same unitary business group but for the fact that
the person is prohibited under Section 1501(a)(27)
from being included in the unitary business group
because he or she is ordinarily required to apportion
business income under different subsections of Section
304. The addition modification required by this
subparagraph shall be reduced to the extent that
dividends were included in base income of the unitary
group for the same taxable year and received by the
taxpayer or by a member of the taxpayer's unitary
business group (including amounts included in gross
income under Sections 951 through 964 of the Internal
Revenue Code and amounts included in gross income
under Section 78 of the Internal Revenue Code) with
respect to the stock of the same person to whom the

SB3019 Enrolled - 984 - LRB104 20255 HLH 33706 b
intangible expenses and costs were directly or
indirectly paid, incurred, or accrued. The preceding
sentence does not apply to the extent that the same
dividends caused a reduction to the addition
modification required under Section 203(a)(2)(D-17) of
this Act. As used in this subparagraph, the term
"intangible expenses and costs" includes (1) expenses,
losses, and costs for, or related to, the direct or
indirect acquisition, use, maintenance or management,
ownership, sale, exchange, or any other disposition of
intangible property; (2) losses incurred, directly or
indirectly, from factoring transactions or discounting
transactions; (3) royalty, patent, technical, and
copyright fees; (4) licensing fees; and (5) other
similar expenses and costs. For purposes of this
subparagraph, "intangible property" includes patents,
patent applications, trade names, trademarks, service
marks, copyrights, mask works, trade secrets, and
similar types of intangible assets.
For taxable years ending before December 31, 2025,
this paragraph shall not apply to the following:
(i) any item of intangible expenses or costs
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person who
is subject in a foreign country or state, other
than a state which requires mandatory unitary

SB3019 Enrolled - 985 - LRB104 20255 HLH 33706 b
reporting, to a tax on or measured by net income
with respect to such item; or
(ii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, if the taxpayer can establish, based
on a preponderance of the evidence, both of the
following:
(a) the person during the same taxable
year paid, accrued, or incurred, the
intangible expense or cost to a person that is
not a related member, and
(b) the transaction giving rise to the
intangible expense or cost between the
taxpayer and the person did not have as a
principal purpose the avoidance of Illinois
income tax, and is paid pursuant to a contract
or agreement that reflects arm's-length terms;
or
(iii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person if
the taxpayer establishes by clear and convincing
evidence, that the adjustments are unreasonable;
or if the taxpayer and the Director agree in
writing to the application or use of an
alternative method of apportionment under Section

SB3019 Enrolled - 986 - LRB104 20255 HLH 33706 b
304(f);
For taxable years ending on or after December 31,
2025, this paragraph shall not apply to the following:
(i) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, if the taxpayer can establish, based
on a preponderance of the evidence, both of the
following:
(a) the person during the same taxable
year paid, accrued, or incurred, the
intangible expense or cost to a person that is
not a related member, and
(b) the transaction giving rise to the
intangible expense or cost between the
taxpayer and the person did not have as a
principal purpose the avoidance of Illinois
income tax, and is paid pursuant to a contract
or agreement that reflects arm's-length terms;
or
(ii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person if
the taxpayer establishes by clear and convincing
evidence, that the adjustments are unreasonable;
or if the taxpayer and the Director agree in
writing to the application or use of an

SB3019 Enrolled - 987 - LRB104 20255 HLH 33706 b
alternative method of apportionment under Section
304(f).
Nothing in this subsection shall preclude the
Director from making any other adjustment otherwise
allowed under Section 404 of this Act for any tax year
beginning after the effective date of this amendment
provided such adjustment is made pursuant to
regulation adopted by the Department and such
regulations provide methods and standards by which the
Department will utilize its authority under Section
404 of this Act;
(D-19) For taxable years ending on or after
December 31, 2008, an amount equal to the amount of
insurance premium expenses and costs otherwise allowed
as a deduction in computing base income, and that were
paid, accrued, or incurred, directly or indirectly, to
a person who would be a member of the same unitary
business group but for the fact that the person is
prohibited under Section 1501(a)(27) from being
included in the unitary business group because he or
she is ordinarily required to apportion business
income under different subsections of Section 304. The
addition modification required by this subparagraph
shall be reduced to the extent that dividends were
included in base income of the unitary group for the
same taxable year and received by the taxpayer or by a

SB3019 Enrolled - 988 - LRB104 20255 HLH 33706 b
member of the taxpayer's unitary business group
(including amounts included in gross income under
Sections 951 through 964 of the Internal Revenue Code
and amounts included in gross income under Section 78
of the Internal Revenue Code) with respect to the
stock of the same person to whom the premiums and costs
were directly or indirectly paid, incurred, or
accrued. The preceding sentence does not apply to the
extent that the same dividends caused a reduction to
the addition modification required under Section
203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this
Act;
(D-20) For taxable years beginning on or after
January 1, 2002 and ending on or before December 31,
2006, in the case of a distribution from a qualified
tuition program under Section 529 of the Internal
Revenue Code, other than (i) a distribution from a
College Savings Pool created under Section 16.5 of the
State Treasurer Act or (ii) a distribution from the
Illinois Prepaid Tuition Trust Fund, an amount equal
to the amount excluded from gross income under Section
529(c)(3)(B). For taxable years beginning on or after
January 1, 2007, in the case of a distribution from a
qualified tuition program under Section 529 of the
Internal Revenue Code, other than (i) a distribution
from a College Savings Pool created under Section 16.5

SB3019 Enrolled - 989 - LRB104 20255 HLH 33706 b
of the State Treasurer Act, (ii) a distribution from
the Illinois Prepaid Tuition Trust Fund, or (iii) a
distribution from a qualified tuition program under
Section 529 of the Internal Revenue Code that (I)
adopts and determines that its offering materials
comply with the College Savings Plans Network's
disclosure principles and (II) has made reasonable
efforts to inform in-state residents of the existence
of in-state qualified tuition programs by informing
Illinois residents directly and, where applicable, to
inform financial intermediaries distributing the
program to inform in-state residents of the existence
of in-state qualified tuition programs at least
annually, an amount equal to the amount excluded from
gross income under Section 529(c)(3)(B).
For the purposes of this subparagraph (D-20), a
qualified tuition program has made reasonable efforts
if it makes disclosures (which may use the term
"in-state program" or "in-state plan" and need not
specifically refer to Illinois or its qualified
programs by name) (i) directly to prospective
participants in its offering materials or makes a
public disclosure, such as a website posting; and (ii)
where applicable, to intermediaries selling the
out-of-state program in the same manner that the
out-of-state program distributes its offering

SB3019 Enrolled - 990 - LRB104 20255 HLH 33706 b
materials;
(D-20.5) For taxable years beginning on or after
January 1, 2018, in the case of a distribution from a
qualified ABLE program under Section 529A of the
Internal Revenue Code, other than a distribution from
a qualified ABLE program created under Section 16.6 of
the State Treasurer Act, an amount equal to the amount
excluded from gross income under Section 529A(c)(1)(B)
of the Internal Revenue Code;
(D-21) For taxable years beginning on or after
January 1, 2007, in the case of transfer of moneys from
a qualified tuition program under Section 529 of the
Internal Revenue Code that is administered by the
State to an out-of-state program, an amount equal to
the amount of moneys previously deducted from base
income under subsection (a)(2)(Y) of this Section;
(D-21.5) For taxable years beginning on or after
January 1, 2018, in the case of the transfer of moneys
from a qualified tuition program under Section 529 or
a qualified ABLE program under Section 529A of the
Internal Revenue Code that is administered by this
State to an ABLE account established under an
out-of-state ABLE account program, an amount equal to
the contribution component of the transferred amount
that was previously deducted from base income under
subsection (a)(2)(Y) or subsection (a)(2)(HH) of this

SB3019 Enrolled - 991 - LRB104 20255 HLH 33706 b
Section;
(D-22) For taxable years beginning on or after
January 1, 2009, and prior to January 1, 2018, in the
case of a nonqualified withdrawal or refund of moneys
from a qualified tuition program under Section 529 of
the Internal Revenue Code administered by the State
that is not used for qualified expenses at an eligible
education institution, an amount equal to the
contribution component of the nonqualified withdrawal
or refund that was previously deducted from base
income under subsection (a)(2)(y) of this Section,
provided that the withdrawal or refund did not result
from the beneficiary's death or disability. For
taxable years beginning on or after January 1, 2018:
(1) in the case of a nonqualified withdrawal or
refund, as defined under Section 16.5 of the State
Treasurer Act, of moneys from a qualified tuition
program under Section 529 of the Internal Revenue Code
administered by the State, an amount equal to the
contribution component of the nonqualified withdrawal
or refund that was previously deducted from base
income under subsection (a)(2)(Y) of this Section, and
(2) in the case of a nonqualified withdrawal or refund
from a qualified ABLE program under Section 529A of
the Internal Revenue Code administered by the State
that is not used for qualified disability expenses, an

SB3019 Enrolled - 992 - LRB104 20255 HLH 33706 b
amount equal to the contribution component of the
nonqualified withdrawal or refund that was previously
deducted from base income under subsection (a)(2)(HH)
of this Section;
(D-23) An amount equal to the credit allowable to
the taxpayer under Section 218(a) of this Act,
determined without regard to Section 218(c) of this
Act;
(D-24) For taxable years ending on or after
December 31, 2017, an amount equal to the deduction
allowed under Section 199 of the Internal Revenue Code
for the taxable year;
(D-25) In the case of a resident, an amount equal
to the amount of tax for which a credit is allowed
pursuant to Section 201(p)(7) of this Act;
(D-26) For taxable years ending on and after
December 31, 2026, an amount equal to the amount of
gain excluded from gross income under Section 1202 of
the Internal Revenue Code;
and by deducting from the total so obtained the sum of the
following amounts:
(E) For taxable years ending before December 31,
2001, any amount included in such total in respect of
any compensation (including but not limited to any
compensation paid or accrued to a serviceman while a
prisoner of war or missing in action) paid to a

SB3019 Enrolled - 993 - LRB104 20255 HLH 33706 b
resident by reason of being on active duty in the Armed
Forces of the United States and in respect of any
compensation paid or accrued to a resident who as a
governmental employee was a prisoner of war or missing
in action, and in respect of any compensation paid to a
resident in 1971 or thereafter for annual training
performed pursuant to Sections 502 and 503, Title 32,
United States Code as a member of the Illinois
National Guard or, beginning with taxable years ending
on or after December 31, 2007, the National Guard of
any other state. For taxable years ending on or after
December 31, 2001, any amount included in such total
in respect of any compensation (including but not
limited to any compensation paid or accrued to a
serviceman while a prisoner of war or missing in
action) paid to a resident by reason of being a member
of any component of the Armed Forces of the United
States and in respect of any compensation paid or
accrued to a resident who as a governmental employee
was a prisoner of war or missing in action, and in
respect of any compensation paid to a resident in 2001
or thereafter by reason of being a member of the
Illinois National Guard or, beginning with taxable
years ending on or after December 31, 2007, the
National Guard of any other state. The provisions of
this subparagraph (E) are exempt from the provisions

SB3019 Enrolled - 994 - LRB104 20255 HLH 33706 b
of Section 250;
(F) An amount equal to all amounts included in
such total pursuant to the provisions of Sections
402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and
408 of the Internal Revenue Code, or included in such
total as distributions under the provisions of any
retirement or disability plan for employees of any
governmental agency or unit, or retirement payments to
retired partners, which payments are excluded in
computing net earnings from self employment by Section
1402 of the Internal Revenue Code and regulations
adopted pursuant thereto;
(G) The valuation limitation amount;
(H) An amount equal to the amount of any tax
imposed by this Act which was refunded to the taxpayer
and included in such total for the taxable year;
(I) An amount equal to all amounts included in
such total pursuant to the provisions of Section 111
of the Internal Revenue Code as a recovery of items
previously deducted from adjusted gross income in the
computation of taxable income;
(J) An amount equal to those dividends included in
such total which were paid by a corporation which
conducts business operations in a River Edge
Redevelopment Zone or zones created under the River
Edge Redevelopment Zone Act, and conducts

SB3019 Enrolled - 995 - LRB104 20255 HLH 33706 b
substantially all of its operations in a River Edge
Redevelopment Zone or zones. This subparagraph (J) is
exempt from the provisions of Section 250;
(K) An amount equal to those dividends included in
such total that were paid by a corporation that
conducts business operations in a federally designated
Foreign Trade Zone or Sub-Zone and that is designated
a High Impact Business located in Illinois; provided
that dividends eligible for the deduction provided in
subparagraph (J) of paragraph (2) of this subsection
shall not be eligible for the deduction provided under
this subparagraph (K);
(L) For taxable years ending after December 31,
1983, an amount equal to all social security benefits
and railroad retirement benefits included in such
total pursuant to Sections 72(r) and 86 of the
Internal Revenue Code;
(M) With the exception of any amounts subtracted
under subparagraph (N), an amount equal to the sum of
all amounts disallowed as deductions by (i) Sections
171(a)(2) and 265(a)(2) of the Internal Revenue Code,
and all amounts of expenses allocable to interest and
disallowed as deductions by Section 265(a)(1) of the
Internal Revenue Code; and (ii) for taxable years
ending on or after August 13, 1999, Sections
171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the

SB3019 Enrolled - 996 - LRB104 20255 HLH 33706 b
Internal Revenue Code, plus, for taxable years ending
on or after December 31, 2011, Section 45G(e)(3) of
the Internal Revenue Code and, for taxable years
ending on or after December 31, 2008, any amount
included in gross income under Section 87 of the
Internal Revenue Code; the provisions of this
subparagraph are exempt from the provisions of Section
250;
(N) An amount equal to all amounts included in
such total which are exempt from taxation by this
State either by reason of its statutes or Constitution
or by reason of the Constitution, treaties or statutes
of the United States; provided that, in the case of any
statute of this State that exempts income derived from
bonds or other obligations from the tax imposed under
this Act, the amount exempted shall be the interest
net of bond premium amortization;
(O) An amount equal to any contribution made to a
job training project established pursuant to the Tax
Increment Allocation Redevelopment Act;
(P) An amount equal to the amount of the deduction
used to compute the federal income tax credit for
restoration of substantial amounts held under claim of
right for the taxable year pursuant to Section 1341 of
the Internal Revenue Code or of any itemized deduction
taken from adjusted gross income in the computation of

SB3019 Enrolled - 997 - LRB104 20255 HLH 33706 b
taxable income for restoration of substantial amounts
held under claim of right for the taxable year;
(Q) An amount equal to any amounts included in
such total, received by the taxpayer as an
acceleration in the payment of life, endowment or
annuity benefits in advance of the time they would
otherwise be payable as an indemnity for a terminal
illness;
(R) An amount equal to the amount of any federal or
State bonus paid to veterans of the Persian Gulf War;
(S) An amount, to the extent included in adjusted
gross income, equal to the amount of a contribution
made in the taxable year on behalf of the taxpayer to a
medical care savings account established under the
Medical Care Savings Account Act or the Medical Care
Savings Account Act of 2000 to the extent the
contribution is accepted by the account administrator
as provided in that Act;
(T) An amount, to the extent included in adjusted
gross income, equal to the amount of interest earned
in the taxable year on a medical care savings account
established under the Medical Care Savings Account Act
or the Medical Care Savings Account Act of 2000 on
behalf of the taxpayer, other than interest added
pursuant to item (D-5) of this paragraph (2);
(U) For one taxable year beginning on or after

SB3019 Enrolled - 998 - LRB104 20255 HLH 33706 b
January 1, 1994, an amount equal to the total amount of
tax imposed and paid under subsections (a) and (b) of
Section 201 of this Act on grant amounts received by
the taxpayer under the Nursing Home Grant Assistance
Act during the taxpayer's taxable years 1992 and 1993;
(V) Beginning with tax years ending on or after
December 31, 1995 and ending with tax years ending on
or before December 31, 2004, an amount equal to the
amount paid by a taxpayer who is a self-employed
taxpayer, a partner of a partnership, or a shareholder
in a Subchapter S corporation for health insurance or
long-term care insurance for that taxpayer or that
taxpayer's spouse or dependents, to the extent that
the amount paid for that health insurance or long-term
care insurance may be deducted under Section 213 of
the Internal Revenue Code, has not been deducted on
the federal income tax return of the taxpayer, and
does not exceed the taxable income attributable to
that taxpayer's income, self-employment income, or
Subchapter S corporation income; except that no
deduction shall be allowed under this item (V) if the
taxpayer is eligible to participate in any health
insurance or long-term care insurance plan of an
employer of the taxpayer or the taxpayer's spouse. The
amount of the health insurance and long-term care
insurance subtracted under this item (V) shall be

SB3019 Enrolled - 999 - LRB104 20255 HLH 33706 b
determined by multiplying total health insurance and
long-term care insurance premiums paid by the taxpayer
times a number that represents the fractional
percentage of eligible medical expenses under Section
213 of the Internal Revenue Code of 1986 not actually
deducted on the taxpayer's federal income tax return;
(W) For taxable years beginning on or after
January 1, 1998, all amounts included in the
taxpayer's federal gross income in the taxable year
from amounts converted from a regular IRA to a Roth
IRA. This paragraph is exempt from the provisions of
Section 250;
(X) For taxable year 1999 and thereafter, an
amount equal to the amount of any (i) distributions,
to the extent includible in gross income for federal
income tax purposes, made to the taxpayer because of
his or her status as a victim of persecution for racial
or religious reasons by Nazi Germany or any other Axis
regime or as an heir of the victim and (ii) items of
income, to the extent includible in gross income for
federal income tax purposes, attributable to, derived
from or in any way related to assets stolen from,
hidden from, or otherwise lost to a victim of
persecution for racial or religious reasons by Nazi
Germany or any other Axis regime immediately prior to,
during, and immediately after World War II, including,

SB3019 Enrolled - 1000 - LRB104 20255 HLH 33706 b
but not limited to, interest on the proceeds
receivable as insurance under policies issued to a
victim of persecution for racial or religious reasons
by Nazi Germany or any other Axis regime by European
insurance companies immediately prior to and during
World War II; provided, however, this subtraction from
federal adjusted gross income does not apply to assets
acquired with such assets or with the proceeds from
the sale of such assets; provided, further, this
paragraph shall only apply to a taxpayer who was the
first recipient of such assets after their recovery
and who is a victim of persecution for racial or
religious reasons by Nazi Germany or any other Axis
regime or as an heir of the victim. The amount of and
the eligibility for any public assistance, benefit, or
similar entitlement is not affected by the inclusion
of items (i) and (ii) of this paragraph in gross income
for federal income tax purposes. This paragraph is
exempt from the provisions of Section 250;
(Y) For taxable years beginning on or after
January 1, 2002 and ending on or before December 31,
2004, moneys contributed in the taxable year to a
College Savings Pool account under Section 16.5 of the
State Treasurer Act, except that amounts excluded from
gross income under Section 529(c)(3)(C)(i) of the
Internal Revenue Code shall not be considered moneys

SB3019 Enrolled - 1001 - LRB104 20255 HLH 33706 b
contributed under this subparagraph (Y). For taxable
years beginning on or after January 1, 2005, a maximum
of $10,000 contributed in the taxable year to (i) a
College Savings Pool account under Section 16.5 of the
State Treasurer Act or (ii) the Illinois Prepaid
Tuition Trust Fund, except that amounts excluded from
gross income under Section 529(c)(3)(C)(i) of the
Internal Revenue Code shall not be considered moneys
contributed under this subparagraph (Y). For purposes
of this subparagraph, contributions made by an
employer on behalf of an employee, or matching
contributions made by an employee, shall be treated as
made by the employee. This subparagraph (Y) is exempt
from the provisions of Section 250;
(Z) For taxable years 2001 and thereafter, for the
taxable year in which the bonus depreciation deduction
is taken on the taxpayer's federal income tax return
under subsection (k) or (n) of Section 168 of the
Internal Revenue Code and for each applicable taxable
year thereafter, an amount equal to "x", where:
(1) "y" equals the amount of the depreciation
deduction taken for the taxable year on the
taxpayer's federal income tax return on property
for which the bonus depreciation deduction was
taken in any year under subsection (k) or (n) of
Section 168 of the Internal Revenue Code, but not

SB3019 Enrolled - 1002 - LRB104 20255 HLH 33706 b
including the bonus depreciation deduction;
(2) for taxable years ending on or before
December 31, 2005, "x" equals "y" multiplied by 30
and then divided by 70 (or "y" multiplied by
0.429); and
(3) for taxable years ending after December
31, 2005:
(i) for property on which a bonus
depreciation deduction of 30% of the adjusted
basis was taken, "x" equals "y" multiplied by
30 and then divided by 70 (or "y" multiplied
by 0.429);
(ii) for property on which a bonus
depreciation deduction of 50% of the adjusted
basis was taken, "x" equals "y" multiplied by
1.0;
(iii) for property on which a bonus
depreciation deduction of 100% of the adjusted
basis was taken in a taxable year ending on or
after December 31, 2021, "x" equals the
depreciation deduction that would be allowed
on that property if the taxpayer had made the
election under Section 168(k)(7) or Section
168(n)(6) of the Internal Revenue Code to not
claim bonus depreciation on that property; and
(iv) for property on which a bonus

SB3019 Enrolled - 1003 - LRB104 20255 HLH 33706 b
depreciation deduction of a percentage other
than 30%, 50% or 100% of the adjusted basis
was taken in a taxable year ending on or after
December 31, 2021, "x" equals "y" multiplied
by 100 times the percentage bonus depreciation
on the property (that is, 100(bonus%)) and
then divided by 100 times 1 minus the
percentage bonus depreciation on the property
(that is, 100(1-bonus%)).
The aggregate amount deducted under this
subparagraph in all taxable years for any one piece of
property may not exceed the amount of the bonus
depreciation deduction taken on that property on the
taxpayer's federal income tax return under subsection
(k) or (n) of Section 168 of the Internal Revenue Code.
This subparagraph (Z) is exempt from the provisions of
Section 250;
(AA) If the taxpayer sells, transfers, abandons,
or otherwise disposes of property for which the
taxpayer was required in any taxable year to make an
addition modification under subparagraph (D-15), then
an amount equal to that addition modification.
If the taxpayer continues to own property through
the last day of the last tax year for which a
subtraction is allowed with respect to that property
under subparagraph (Z) and for which the taxpayer was

SB3019 Enrolled - 1004 - LRB104 20255 HLH 33706 b
required in any taxable year to make an addition
modification under subparagraph (D-15), then an amount
equal to that addition modification.
The taxpayer is allowed to take the deduction
under this subparagraph only once with respect to any
one piece of property.
This subparagraph (AA) is exempt from the
provisions of Section 250;
(BB) Any amount included in adjusted gross income,
other than salary, received by a driver in a
ridesharing arrangement using a motor vehicle;
(CC) The amount of (i) any interest income (net of
the deductions allocable thereto) taken into account
for the taxable year with respect to a transaction
with a taxpayer that is required to make an addition
modification with respect to such transaction under
Section 203(a)(2)(D-17), 203(b)(2)(E-12),
203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
the amount of that addition modification, and (ii) any
income from intangible property (net of the deductions
allocable thereto) taken into account for the taxable
year with respect to a transaction with a taxpayer
that is required to make an addition modification with
respect to such transaction under Section
203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
203(d)(2)(D-8), but not to exceed the amount of that

SB3019 Enrolled - 1005 - LRB104 20255 HLH 33706 b
addition modification. This subparagraph (CC) is
exempt from the provisions of Section 250;
(DD) An amount equal to the interest income taken
into account for the taxable year (net of the
deductions allocable thereto) with respect to
transactions with (i) a foreign person who would be a
member of the taxpayer's unitary business group but
for the fact that the foreign person's business
activity outside the United States is 80% or more of
that person's total business activity and (ii) for
taxable years ending on or after December 31, 2008, to
a person who would be a member of the same unitary
business group but for the fact that the person is
prohibited under Section 1501(a)(27) from being
included in the unitary business group because he or
she is ordinarily required to apportion business
income under different subsections of Section 304, but
not to exceed the addition modification required to be
made for the same taxable year under Section
203(a)(2)(D-17) for interest paid, accrued, or
incurred, directly or indirectly, to the same person.
This subparagraph (DD) is exempt from the provisions
of Section 250;
(EE) An amount equal to the income from intangible
property taken into account for the taxable year (net
of the deductions allocable thereto) with respect to

SB3019 Enrolled - 1006 - LRB104 20255 HLH 33706 b
transactions with (i) a foreign person who would be a
member of the taxpayer's unitary business group but
for the fact that the foreign person's business
activity outside the United States is 80% or more of
that person's total business activity and (ii) for
taxable years ending on or after December 31, 2008, to
a person who would be a member of the same unitary
business group but for the fact that the person is
prohibited under Section 1501(a)(27) from being
included in the unitary business group because he or
she is ordinarily required to apportion business
income under different subsections of Section 304, but
not to exceed the addition modification required to be
made for the same taxable year under Section
203(a)(2)(D-18) for intangible expenses and costs
paid, accrued, or incurred, directly or indirectly, to
the same foreign person. This subparagraph (EE) is
exempt from the provisions of Section 250;
(FF) An amount equal to any amount awarded to the
taxpayer during the taxable year by the Court of
Claims under subsection (c) of Section 8 of the Court
of Claims Act for time unjustly served in a State
prison. This subparagraph (FF) is exempt from the
provisions of Section 250;
(GG) For taxable years ending on or after December
31, 2011, in the case of a taxpayer who was required to

SB3019 Enrolled - 1007 - LRB104 20255 HLH 33706 b
add back any insurance premiums under Section
203(a)(2)(D-19), such taxpayer may elect to subtract
that part of a reimbursement received from the
insurance company equal to the amount of the expense
or loss (including expenses incurred by the insurance
company) that would have been taken into account as a
deduction for federal income tax purposes if the
expense or loss had been uninsured. If a taxpayer
makes the election provided for by this subparagraph
(GG), the insurer to which the premiums were paid must
add back to income the amount subtracted by the
taxpayer pursuant to this subparagraph (GG). This
subparagraph (GG) is exempt from the provisions of
Section 250;
(HH) For taxable years beginning on or after
January 1, 2018 and prior to January 1, 2028, a maximum
of $10,000 contributed in the taxable year to a
qualified ABLE account under Section 16.6 of the State
Treasurer Act, except that amounts excluded from gross
income under Section 529(c)(3)(C)(i) or Section
529A(c)(1)(C) of the Internal Revenue Code shall not
be considered moneys contributed under this
subparagraph (HH). For purposes of this subparagraph
(HH), contributions made by an employer on behalf of
an employee, or matching contributions made by an
employee, shall be treated as made by the employee;

SB3019 Enrolled - 1008 - LRB104 20255 HLH 33706 b
(II) For taxable years that begin on or after
January 1, 2021 and begin before January 1, 2026, the
amount that is included in the taxpayer's federal
adjusted gross income pursuant to Section 61 of the
Internal Revenue Code as discharge of indebtedness
attributable to student loan forgiveness and that is
not excluded from the taxpayer's federal adjusted
gross income pursuant to paragraph (5) of subsection
(f) of Section 108 of the Internal Revenue Code;
(JJ) For taxable years beginning on or after
January 1, 2023, for any cannabis establishment
operating in this State and licensed under the
Cannabis Regulation and Tax Act or any cannabis
cultivation center or medical cannabis dispensing
organization operating in this State and licensed
under the Compassionate Use of Medical Cannabis
Program Act, an amount equal to the deductions that
were disallowed under Section 280E of the Internal
Revenue Code for the taxable year and that would not be
added back under this subsection. The provisions of
this subparagraph (JJ) are exempt from the provisions
of Section 250;
(KK) To the extent includible in gross income for
federal income tax purposes, any amount awarded or
paid to the taxpayer as a result of a judgment or
settlement for fertility fraud as provided in Section

SB3019 Enrolled - 1009 - LRB104 20255 HLH 33706 b
15 of the Illinois Fertility Fraud Act, donor
fertility fraud as provided in Section 20 of the
Illinois Fertility Fraud Act, or similar action in
another state;
(LL) For taxable years beginning on or after
January 1, 2026, if the taxpayer is a qualified
worker, as defined in the Workforce Development
through Charitable Loan Repayment Act, an amount equal
to the amount included in the taxpayer's federal
adjusted gross income that is attributable to student
loan repayment assistance received by the taxpayer
during the taxable year from a qualified community
foundation under the provisions of the Workforce
Development through Charitable Loan Repayment Act.
This subparagraph (LL) is exempt from the
provisions of Section 250; and
(MM) For taxable years beginning on or after
January 1, 2025, if the taxpayer is an eligible
resident as defined in the Medical Debt Relief Act, an
amount equal to the amount included in the taxpayer's
federal adjusted gross income that is attributable to
medical debt relief received by the taxpayer during
the taxable year from a nonprofit medical debt relief
coordinator under the provisions of the Medical Debt
Relief Act. This subparagraph (MM) is exempt from the
provisions of Section 250.

SB3019 Enrolled - 1010 - LRB104 20255 HLH 33706 b
(b) Corporations.
(1) In general. In the case of a corporation, base
income means an amount equal to the taxpayer's taxable
income for the taxable year as modified by paragraph (2).
(2) Modifications. The taxable income referred to in
paragraph (1) shall be modified by adding thereto the sum
of the following amounts:
(A) An amount equal to all amounts paid or accrued
to the taxpayer as interest and all distributions
received from regulated investment companies during
the taxable year to the extent excluded from gross
income in the computation of taxable income;
(B) An amount equal to the amount of tax imposed by
this Act to the extent deducted from gross income in
the computation of taxable income for the taxable
year;
(C) In the case of a regulated investment company,
an amount equal to the excess of (i) the net long-term
capital gain for the taxable year, over (ii) the
amount of the capital gain dividends designated as
such in accordance with Section 852(b)(3)(C) of the
Internal Revenue Code and any amount designated under
Section 852(b)(3)(D) of the Internal Revenue Code,
attributable to the taxable year (this amendatory Act
of 1995 (Public Act 89-89) is declarative of existing

SB3019 Enrolled - 1011 - LRB104 20255 HLH 33706 b
law and is not a new enactment);
(D) The amount of any net operating loss deduction
taken in arriving at taxable income, other than a net
operating loss carried forward from a taxable year
ending prior to December 31, 1986;
(E) For taxable years in which a net operating
loss carryback or carryforward from a taxable year
ending prior to December 31, 1986 is an element of
taxable income under paragraph (1) of subsection (e)
or subparagraph (E) of paragraph (2) of subsection
(e), the amount by which addition modifications other
than those provided by this subparagraph (E) exceeded
subtraction modifications in such earlier taxable
year, with the following limitations applied in the
order that they are listed:
(i) the addition modification relating to the
net operating loss carried back or forward to the
taxable year from any taxable year ending prior to
December 31, 1986 shall be reduced by the amount
of addition modification under this subparagraph
(E) which related to that net operating loss and
which was taken into account in calculating the
base income of an earlier taxable year, and
(ii) the addition modification relating to the
net operating loss carried back or forward to the
taxable year from any taxable year ending prior to

SB3019 Enrolled - 1012 - LRB104 20255 HLH 33706 b
December 31, 1986 shall not exceed the amount of
such carryback or carryforward;
For taxable years in which there is a net
operating loss carryback or carryforward from more
than one other taxable year ending prior to December
31, 1986, the addition modification provided in this
subparagraph (E) shall be the sum of the amounts
computed independently under the preceding provisions
of this subparagraph (E) for each such taxable year;
(E-5) For taxable years ending after December 31,
1997, an amount equal to any eligible remediation
costs that the corporation deducted in computing
adjusted gross income and for which the corporation
claims a credit under subsection (l) of Section 201;
(E-10) For taxable years 2001 through 2025, an
amount equal to the bonus depreciation deduction taken
on the taxpayer's federal income tax return for the
taxable year under subsection (k) of Section 168 of
the Internal Revenue Code; for taxable years 2026 and
thereafter, an amount equal to the bonus depreciation
deduction taken on the taxpayer's federal income tax
return for the taxable year under subsection (k) or
(n) of Section 168 of the Internal Revenue Code;
(E-11) If the taxpayer sells, transfers, abandons,
or otherwise disposes of property for which the
taxpayer was required in any taxable year to make an

SB3019 Enrolled - 1013 - LRB104 20255 HLH 33706 b
addition modification under subparagraph (E-10), then
an amount equal to the aggregate amount of the
deductions taken in all taxable years under
subparagraph (T) with respect to that property.
If the taxpayer continues to own property through
the last day of the last tax year for which a
subtraction is allowed with respect to that property
under subparagraph (T) and for which the taxpayer was
allowed in any taxable year to make a subtraction
modification under subparagraph (T), then an amount
equal to that subtraction modification.
The taxpayer is required to make the addition
modification under this subparagraph only once with
respect to any one piece of property;
(E-12) An amount equal to the amount otherwise
allowed as a deduction in computing base income for
interest paid, accrued, or incurred, directly or
indirectly, (i) for taxable years ending on or after
December 31, 2004, to a foreign person who would be a
member of the same unitary business group but for the
fact the foreign person's business activity outside
the United States is 80% or more of the foreign
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business
group but for the fact that the person is prohibited

SB3019 Enrolled - 1014 - LRB104 20255 HLH 33706 b
under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily
required to apportion business income under different
subsections of Section 304. The addition modification
required by this subparagraph shall be reduced to the
extent that dividends were included in base income of
the unitary group for the same taxable year and
received by the taxpayer or by a member of the
taxpayer's unitary business group (including amounts
included in gross income pursuant to Sections 951
through 964 of the Internal Revenue Code and amounts
included in gross income under Section 78 of the
Internal Revenue Code) with respect to the stock of
the same person to whom the interest was paid,
accrued, or incurred. For taxable years ending on and
after December 31, 2025, for purposes of applying this
paragraph in the case of a taxpayer to which Section
163(j) of the Internal Revenue Code applies for the
taxable year, the reduction in the amount of interest
for which a deduction is allowed by reason of Section
163(j) shall be treated as allocable first to persons
who are not foreign persons referred to in this
paragraph and then to such foreign persons.
For taxable years ending before December 31, 2025,
this paragraph shall not apply to the following:
(i) an item of interest paid, accrued, or

SB3019 Enrolled - 1015 - LRB104 20255 HLH 33706 b
incurred, directly or indirectly, to a person who
is subject in a foreign country or state, other
than a state which requires mandatory unitary
reporting, to a tax on or measured by net income
with respect to such interest; or
(ii) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer can establish, based on a
preponderance of the evidence, both of the
following:
(a) the person, during the same taxable
year, paid, accrued, or incurred, the interest
to a person that is not a related member, and
(b) the transaction giving rise to the
interest expense between the taxpayer and the
person did not have as a principal purpose the
avoidance of Illinois income tax, and is paid
pursuant to a contract or agreement that
reflects an arm's-length interest rate and
terms; or
(iii) the taxpayer can establish, based on
clear and convincing evidence, that the interest
paid, accrued, or incurred relates to a contract
or agreement entered into at arm's-length rates
and terms and the principal purpose for the
payment is not federal or Illinois tax avoidance;

SB3019 Enrolled - 1016 - LRB104 20255 HLH 33706 b
or
(iv) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer establishes by clear and convincing
evidence that the adjustments are unreasonable; or
if the taxpayer and the Director agree in writing
to the application or use of an alternative method
of apportionment under Section 304(f).
For taxable years ending on or after December 31,
2025, this paragraph shall not apply to the following:
(i) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer can establish, based on a
preponderance of the evidence, both of the
following:
(a) the person, during the same taxable
year, paid, accrued, or incurred, the interest
to a person that is not a related member, and
(b) the transaction giving rise to the
interest expense between the taxpayer and the
person did not have as a principal purpose the
avoidance of Illinois income tax, and is paid
pursuant to a contract or agreement that
reflects an arm's-length interest rate and
terms; or
(ii) an item of interest paid, accrued, or

SB3019 Enrolled - 1017 - LRB104 20255 HLH 33706 b
incurred, directly or indirectly, to a person if
the taxpayer establishes by clear and convincing
evidence that the adjustments are unreasonable; or
if the taxpayer and the Director agree in writing
to the application or use of an alternative method
of apportionment under Section 304(f).
Nothing in this subsection shall preclude the
Director from making any other adjustment otherwise
allowed under Section 404 of this Act for any tax year
beginning after the effective date of this amendment
provided such adjustment is made pursuant to
regulation adopted by the Department and such
regulations provide methods and standards by which the
Department will utilize its authority under Section
404 of this Act;
(E-13) An amount equal to the amount of intangible
expenses and costs otherwise allowed as a deduction in
computing base income, and that were paid, accrued, or
incurred, directly or indirectly, (i) for taxable
years ending on or after December 31, 2004, to a
foreign person who would be a member of the same
unitary business group but for the fact that the
foreign person's business activity outside the United
States is 80% or more of that person's total business
activity and (ii) for taxable years ending on or after
December 31, 2008, to a person who would be a member of

SB3019 Enrolled - 1018 - LRB104 20255 HLH 33706 b
the same unitary business group but for the fact that
the person is prohibited under Section 1501(a)(27)
from being included in the unitary business group
because he or she is ordinarily required to apportion
business income under different subsections of Section
304. The addition modification required by this
subparagraph shall be reduced to the extent that
dividends were included in base income of the unitary
group for the same taxable year and received by the
taxpayer or by a member of the taxpayer's unitary
business group (including amounts included in gross
income pursuant to Sections 951 through 964 of the
Internal Revenue Code and amounts included in gross
income under Section 78 of the Internal Revenue Code)
with respect to the stock of the same person to whom
the intangible expenses and costs were directly or
indirectly paid, incurred, or accrued. The preceding
sentence shall not apply to the extent that the same
dividends caused a reduction to the addition
modification required under Section 203(b)(2)(E-12) of
this Act. As used in this subparagraph, the term
"intangible expenses and costs" includes (1) expenses,
losses, and costs for, or related to, the direct or
indirect acquisition, use, maintenance or management,
ownership, sale, exchange, or any other disposition of
intangible property; (2) losses incurred, directly or

SB3019 Enrolled - 1019 - LRB104 20255 HLH 33706 b
indirectly, from factoring transactions or discounting
transactions; (3) royalty, patent, technical, and
copyright fees; (4) licensing fees; and (5) other
similar expenses and costs. For purposes of this
subparagraph, "intangible property" includes patents,
patent applications, trade names, trademarks, service
marks, copyrights, mask works, trade secrets, and
similar types of intangible assets.
For taxable years ending before December 31, 2025,
this paragraph shall not apply to the following:
(i) any item of intangible expenses or costs
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person who
is subject in a foreign country or state, other
than a state which requires mandatory unitary
reporting, to a tax on or measured by net income
with respect to such item; or
(ii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, if the taxpayer can establish, based
on a preponderance of the evidence, both of the
following:
(a) the person during the same taxable
year paid, accrued, or incurred, the
intangible expense or cost to a person that is
not a related member, and

SB3019 Enrolled - 1020 - LRB104 20255 HLH 33706 b
(b) the transaction giving rise to the
intangible expense or cost between the
taxpayer and the person did not have as a
principal purpose the avoidance of Illinois
income tax, and is paid pursuant to a contract
or agreement that reflects arm's-length terms;
or
(iii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person if
the taxpayer establishes by clear and convincing
evidence, that the adjustments are unreasonable;
or if the taxpayer and the Director agree in
writing to the application or use of an
alternative method of apportionment under Section
304(f);
For taxable years ending on or after December 31,
2025, this paragraph shall not apply to the following:
(i) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, if the taxpayer can establish, based
on a preponderance of the evidence, both of the
following:
(a) the person during the same taxable
year paid, accrued, or incurred, the
intangible expense or cost to a person that is

SB3019 Enrolled - 1021 - LRB104 20255 HLH 33706 b
not a related member, and
(b) the transaction giving rise to the
intangible expense or cost between the
taxpayer and the person did not have as a
principal purpose the avoidance of Illinois
income tax, and is paid pursuant to a contract
or agreement that reflects arm's-length terms;
or
(ii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person if
the taxpayer establishes by clear and convincing
evidence, that the adjustments are unreasonable;
or if the taxpayer and the Director agree in
writing to the application or use of an
alternative method of apportionment under Section
304(f).
Nothing in this subsection shall preclude the
Director from making any other adjustment otherwise
allowed under Section 404 of this Act for any tax year
beginning after the effective date of this amendment
provided such adjustment is made pursuant to
regulation adopted by the Department and such
regulations provide methods and standards by which the
Department will utilize its authority under Section
404 of this Act;

SB3019 Enrolled - 1022 - LRB104 20255 HLH 33706 b
(E-14) For taxable years ending on or after
December 31, 2008, an amount equal to the amount of
insurance premium expenses and costs otherwise allowed
as a deduction in computing base income, and that were
paid, accrued, or incurred, directly or indirectly, to
a person who would be a member of the same unitary
business group but for the fact that the person is
prohibited under Section 1501(a)(27) from being
included in the unitary business group because he or
she is ordinarily required to apportion business
income under different subsections of Section 304. The
addition modification required by this subparagraph
shall be reduced to the extent that dividends were
included in base income of the unitary group for the
same taxable year and received by the taxpayer or by a
member of the taxpayer's unitary business group
(including amounts included in gross income under
Sections 951 through 964 of the Internal Revenue Code
and amounts included in gross income under Section 78
of the Internal Revenue Code) with respect to the
stock of the same person to whom the premiums and costs
were directly or indirectly paid, incurred, or
accrued. The preceding sentence does not apply to the
extent that the same dividends caused a reduction to
the addition modification required under Section
203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this

SB3019 Enrolled - 1023 - LRB104 20255 HLH 33706 b
Act;
(E-15) For taxable years beginning after December
31, 2008, any deduction for dividends paid by a
captive real estate investment trust that is allowed
to a real estate investment trust under Section
857(b)(2)(B) of the Internal Revenue Code for
dividends paid;
(E-16) An amount equal to the credit allowable to
the taxpayer under Section 218(a) of this Act,
determined without regard to Section 218(c) of this
Act;
(E-17) For taxable years ending on or after
December 31, 2017, an amount equal to the deduction
allowed under Section 199 of the Internal Revenue Code
for the taxable year;
(E-18) for taxable years beginning after December
31, 2018, an amount equal to the deduction allowed
under Section 250(a)(1)(A) of the Internal Revenue
Code for the taxable year;
(E-19) for taxable years ending on or after June
30, 2021, an amount equal to the deduction allowed
under Section 250(a)(1)(B)(i) of the Internal Revenue
Code for the taxable year;
(E-20) for taxable years ending on or after June
30, 2021, an amount equal to the deduction allowed
under Sections 243(e) and 245A(a) of the Internal

SB3019 Enrolled - 1024 - LRB104 20255 HLH 33706 b
Revenue Code for the taxable year;
(E-21) the amount that is claimed as a federal
deduction when computing the taxpayer's federal
taxable income for the taxable year and that is
attributable to an endowment gift for which the
taxpayer receives a credit under the Illinois Gives
Tax Credit Act;
and by deducting from the total so obtained the sum of the
following amounts:
(F) An amount equal to the amount of any tax
imposed by this Act which was refunded to the taxpayer
and included in such total for the taxable year;
(G) An amount equal to any amount included in such
total under Section 78 of the Internal Revenue Code;
(H) In the case of a regulated investment company,
an amount equal to the amount of exempt interest
dividends as defined in subsection (b)(5) of Section
852 of the Internal Revenue Code, paid to shareholders
for the taxable year;
(I) With the exception of any amounts subtracted
under subparagraph (J), an amount equal to the sum of
all amounts disallowed as deductions by (i) Sections
171(a)(2) and 265(a)(2) and amounts disallowed as
interest expense by Section 291(a)(3) of the Internal
Revenue Code, and all amounts of expenses allocable to
interest and disallowed as deductions by Section

SB3019 Enrolled - 1025 - LRB104 20255 HLH 33706 b
265(a)(1) of the Internal Revenue Code; and (ii) for
taxable years ending on or after August 13, 1999,
Sections 171(a)(2), 265, 280C, 291(a)(3), and
832(b)(5)(B)(i) of the Internal Revenue Code, plus,
for tax years ending on or after December 31, 2011,
amounts disallowed as deductions by Section 45G(e)(3)
of the Internal Revenue Code and, for taxable years
ending on or after December 31, 2008, any amount
included in gross income under Section 87 of the
Internal Revenue Code and the policyholders' share of
tax-exempt interest of a life insurance company under
Section 807(a)(2)(B) of the Internal Revenue Code (in
the case of a life insurance company with gross income
from a decrease in reserves for the tax year) or
Section 807(b)(1)(B) of the Internal Revenue Code (in
the case of a life insurance company allowed a
deduction for an increase in reserves for the tax
year); the provisions of this subparagraph are exempt
from the provisions of Section 250;
(J) An amount equal to all amounts included in
such total which are exempt from taxation by this
State either by reason of its statutes or Constitution
or by reason of the Constitution, treaties or statutes
of the United States; provided that, in the case of any
statute of this State that exempts income derived from
bonds or other obligations from the tax imposed under

SB3019 Enrolled - 1026 - LRB104 20255 HLH 33706 b
this Act, the amount exempted shall be the interest
net of bond premium amortization;
(K) An amount equal to those dividends included in
such total which were paid by a corporation which
conducts business operations in a River Edge
Redevelopment Zone or zones created under the River
Edge Redevelopment Zone Act and conducts substantially
all of its operations in a River Edge Redevelopment
Zone or zones. This subparagraph (K) is exempt from
the provisions of Section 250;
(L) An amount equal to those dividends included in
such total that were paid by a corporation that
conducts business operations in a federally designated
Foreign Trade Zone or Sub-Zone and that is designated
a High Impact Business located in Illinois; provided
that dividends eligible for the deduction provided in
subparagraph (K) of paragraph 2 of this subsection
shall not be eligible for the deduction provided under
this subparagraph (L);
(M) For any taxpayer that is a financial
organization within the meaning of Section 304(c) of
this Act, an amount included in such total as interest
income from a loan or loans made by such taxpayer to a
borrower, to the extent that such a loan is secured by
property which is eligible for the River Edge
Redevelopment Zone Investment Credit. To determine the

SB3019 Enrolled - 1027 - LRB104 20255 HLH 33706 b
portion of a loan or loans that is secured by property
eligible for a Section 201(f) investment credit to the
borrower, the entire principal amount of the loan or
loans between the taxpayer and the borrower should be
divided into the basis of the Section 201(f)
investment credit property which secures the loan or
loans, using for this purpose the original basis of
such property on the date that it was placed in service
in the River Edge Redevelopment Zone. The subtraction
modification available to the taxpayer in any year
under this subsection shall be that portion of the
total interest paid by the borrower with respect to
such loan attributable to the eligible property as
calculated under the previous sentence. This
subparagraph (M) is exempt from the provisions of
Section 250;
(M-1) For any taxpayer that is a financial
organization within the meaning of Section 304(c) of
this Act, an amount included in such total as interest
income from a loan or loans made by such taxpayer to a
borrower, to the extent that such a loan is secured by
property which is eligible for the High Impact
Business Investment Credit. To determine the portion
of a loan or loans that is secured by property eligible
for a Section 201(h) investment credit to the
borrower, the entire principal amount of the loan or

SB3019 Enrolled - 1028 - LRB104 20255 HLH 33706 b
loans between the taxpayer and the borrower should be
divided into the basis of the Section 201(h)
investment credit property which secures the loan or
loans, using for this purpose the original basis of
such property on the date that it was placed in service
in a federally designated Foreign Trade Zone or
Sub-Zone located in Illinois. No taxpayer that is
eligible for the deduction provided in subparagraph
(M) of paragraph (2) of this subsection shall be
eligible for the deduction provided under this
subparagraph (M-1). The subtraction modification
available to taxpayers in any year under this
subsection shall be that portion of the total interest
paid by the borrower with respect to such loan
attributable to the eligible property as calculated
under the previous sentence;
(N) Two times any contribution made during the
taxable year to a designated zone organization to the
extent that the contribution (i) qualifies as a
charitable contribution under subsection (c) of
Section 170 of the Internal Revenue Code and (ii)
must, by its terms, be used for a project approved by
the Department of Commerce and Economic Opportunity
under Section 11 of the Illinois Enterprise Zone Act
or under Section 10-10 of the River Edge Redevelopment
Zone Act. This subparagraph (N) is exempt from the

SB3019 Enrolled - 1029 - LRB104 20255 HLH 33706 b
provisions of Section 250;
(O) An amount equal to: (i) 85% for taxable years
ending on or before December 31, 1992, or, a
percentage equal to the percentage allowable under
Section 243(a)(1) of the Internal Revenue Code of 1986
for taxable years ending after December 31, 1992, of
the amount by which dividends included in taxable
income and received from a corporation that is not
created or organized under the laws of the United
States or any state or political subdivision thereof,
including, for taxable years ending on or after
December 31, 1988, dividends received or deemed
received or paid or deemed paid under Sections 951
through 965 of the Internal Revenue Code, exceed the
amount of the modification provided under subparagraph
(G) of paragraph (2) of this subsection (b) which is
related to such dividends, and including, for taxable
years ending on or after December 31, 2008, dividends
received from a captive real estate investment trust;
plus (ii) 100% of the amount by which dividends,
included in taxable income and received, including,
for taxable years ending on or after December 31,
1988, dividends received or deemed received or paid or
deemed paid under Sections 951 through 964 of the
Internal Revenue Code and including, for taxable years
ending on or after December 31, 2008, dividends

SB3019 Enrolled - 1030 - LRB104 20255 HLH 33706 b
received from a captive real estate investment trust,
from any such corporation specified in clause (i) that
would but for the provisions of Section 1504(b)(3) of
the Internal Revenue Code be treated as a member of the
affiliated group which includes the dividend
recipient, exceed the amount of the modification
provided under subparagraph (G) of paragraph (2) of
this subsection (b) which is related to such
dividends. For taxable years ending on or after June
30, 2021, (i) for purposes of this subparagraph, the
term "dividend" does not include any amount treated as
a dividend under Section 1248 of the Internal Revenue
Code, and (ii) this subparagraph shall not apply to
dividends for which a deduction is allowed under
Section 245(a) of the Internal Revenue Code. For
taxable years ending on or after December 31, 2025,
50% of the amount of global intangible low-taxed
income or net controlled foreign corporation (CFC)
tested income received or deemed received or paid or
deemed paid under Sections 951 through 965 of the
Internal Revenue Code. This subparagraph (O) is exempt
from the provisions of Section 250 of this Act;
(P) An amount equal to any contribution made to a
job training project established pursuant to the Tax
Increment Allocation Redevelopment Act;
(Q) An amount equal to the amount of the deduction

SB3019 Enrolled - 1031 - LRB104 20255 HLH 33706 b
used to compute the federal income tax credit for
restoration of substantial amounts held under claim of
right for the taxable year pursuant to Section 1341 of
the Internal Revenue Code;
(R) On and after July 20, 1999, in the case of an
attorney-in-fact with respect to whom an interinsurer
or a reciprocal insurer has made the election under
Section 835 of the Internal Revenue Code, 26 U.S.C.
835, an amount equal to the excess, if any, of the
amounts paid or incurred by that interinsurer or
reciprocal insurer in the taxable year to the
attorney-in-fact over the deduction allowed to that
interinsurer or reciprocal insurer with respect to the
attorney-in-fact under Section 835(b) of the Internal
Revenue Code for the taxable year; the provisions of
this subparagraph are exempt from the provisions of
Section 250;
(S) For taxable years ending on or after December
31, 1997, in the case of a Subchapter S corporation, an
amount equal to all amounts of income allocable to a
shareholder subject to the Personal Property Tax
Replacement Income Tax imposed by subsections (c) and
(d) of Section 201 of this Act, including amounts
allocable to organizations exempt from federal income
tax by reason of Section 501(a) of the Internal
Revenue Code. This subparagraph (S) is exempt from the

SB3019 Enrolled - 1032 - LRB104 20255 HLH 33706 b
provisions of Section 250;
(T) For taxable years 2001 and thereafter, for the
taxable year in which the bonus depreciation deduction
is taken on the taxpayer's federal income tax return
under subsection (k) or (n) of Section 168 of the
Internal Revenue Code and for each applicable taxable
year thereafter, an amount equal to "x", where:
(1) "y" equals the amount of the depreciation
deduction taken for the taxable year on the
taxpayer's federal income tax return on property
for which the bonus depreciation deduction was
taken in any year under subsection (k) or (n) of
Section 168 of the Internal Revenue Code, but not
including the bonus depreciation deduction;
(2) for taxable years ending on or before
December 31, 2005, "x" equals "y" multiplied by 30
and then divided by 70 (or "y" multiplied by
0.429); and
(3) for taxable years ending after December
31, 2005:
(i) for property on which a bonus
depreciation deduction of 30% of the adjusted
basis was taken, "x" equals "y" multiplied by
30 and then divided by 70 (or "y" multiplied
by 0.429);
(ii) for property on which a bonus

SB3019 Enrolled - 1033 - LRB104 20255 HLH 33706 b
depreciation deduction of 50% of the adjusted
basis was taken, "x" equals "y" multiplied by
1.0;
(iii) for property on which a bonus
depreciation deduction of 100% of the adjusted
basis was taken in a taxable year ending on or
after December 31, 2021, "x" equals the
depreciation deduction that would be allowed
on that property if the taxpayer had made the
election under Section 168(k)(7) or Section
168(n)(6) of the Internal Revenue Code to not
claim bonus depreciation on that property; and
(iv) for property on which a bonus
depreciation deduction of a percentage other
than 30%, 50% or 100% of the adjusted basis
was taken in a taxable year ending on or after
December 31, 2021, "x" equals "y" multiplied
by 100 times the percentage bonus depreciation
on the property (that is, 100(bonus%)) and
then divided by 100 times 1 minus the
percentage bonus depreciation on the property
(that is, 100(1-bonus%)).
The aggregate amount deducted under this
subparagraph in all taxable years for any one piece of
property may not exceed the amount of the bonus
depreciation deduction taken on that property on the

SB3019 Enrolled - 1034 - LRB104 20255 HLH 33706 b
taxpayer's federal income tax return under subsection
(k) or (n) of Section 168 of the Internal Revenue Code.
This subparagraph (T) is exempt from the provisions of
Section 250;
(U) If the taxpayer sells, transfers, abandons, or
otherwise disposes of property for which the taxpayer
was required in any taxable year to make an addition
modification under subparagraph (E-10), then an amount
equal to that addition modification.
If the taxpayer continues to own property through
the last day of the last tax year for which a
subtraction is allowed with respect to that property
under subparagraph (T) and for which the taxpayer was
required in any taxable year to make an addition
modification under subparagraph (E-10), then an amount
equal to that addition modification.
The taxpayer is allowed to take the deduction
under this subparagraph only once with respect to any
one piece of property.
This subparagraph (U) is exempt from the
provisions of Section 250;
(V) The amount of: (i) any interest income (net of
the deductions allocable thereto) taken into account
for the taxable year with respect to a transaction
with a taxpayer that is required to make an addition
modification with respect to such transaction under

SB3019 Enrolled - 1035 - LRB104 20255 HLH 33706 b
Section 203(a)(2)(D-17), 203(b)(2)(E-12),
203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
the amount of such addition modification, (ii) any
income from intangible property (net of the deductions
allocable thereto) taken into account for the taxable
year with respect to a transaction with a taxpayer
that is required to make an addition modification with
respect to such transaction under Section
203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
203(d)(2)(D-8), but not to exceed the amount of such
addition modification, and (iii) any insurance premium
income (net of deductions allocable thereto) taken
into account for the taxable year with respect to a
transaction with a taxpayer that is required to make
an addition modification with respect to such
transaction under Section 203(a)(2)(D-19), Section
203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section
203(d)(2)(D-9), but not to exceed the amount of that
addition modification. This subparagraph (V) is exempt
from the provisions of Section 250;
(W) An amount equal to the interest income taken
into account for the taxable year (net of the
deductions allocable thereto) with respect to
transactions with (i) a foreign person who would be a
member of the taxpayer's unitary business group but
for the fact that the foreign person's business

SB3019 Enrolled - 1036 - LRB104 20255 HLH 33706 b
activity outside the United States is 80% or more of
that person's total business activity and (ii) for
taxable years ending on or after December 31, 2008, to
a person who would be a member of the same unitary
business group but for the fact that the person is
prohibited under Section 1501(a)(27) from being
included in the unitary business group because he or
she is ordinarily required to apportion business
income under different subsections of Section 304, but
not to exceed the addition modification required to be
made for the same taxable year under Section
203(b)(2)(E-12) for interest paid, accrued, or
incurred, directly or indirectly, to the same person.
This subparagraph (W) is exempt from the provisions of
Section 250;
(X) An amount equal to the income from intangible
property taken into account for the taxable year (net
of the deductions allocable thereto) with respect to
transactions with (i) a foreign person who would be a
member of the taxpayer's unitary business group but
for the fact that the foreign person's business
activity outside the United States is 80% or more of
that person's total business activity and (ii) for
taxable years ending on or after December 31, 2008, to
a person who would be a member of the same unitary
business group but for the fact that the person is

SB3019 Enrolled - 1037 - LRB104 20255 HLH 33706 b
prohibited under Section 1501(a)(27) from being
included in the unitary business group because he or
she is ordinarily required to apportion business
income under different subsections of Section 304, but
not to exceed the addition modification required to be
made for the same taxable year under Section
203(b)(2)(E-13) for intangible expenses and costs
paid, accrued, or incurred, directly or indirectly, to
the same foreign person. This subparagraph (X) is
exempt from the provisions of Section 250;
(Y) For taxable years ending on or after December
31, 2011, in the case of a taxpayer who was required to
add back any insurance premiums under Section
203(b)(2)(E-14), such taxpayer may elect to subtract
that part of a reimbursement received from the
insurance company equal to the amount of the expense
or loss (including expenses incurred by the insurance
company) that would have been taken into account as a
deduction for federal income tax purposes if the
expense or loss had been uninsured. If a taxpayer
makes the election provided for by this subparagraph
(Y), the insurer to which the premiums were paid must
add back to income the amount subtracted by the
taxpayer pursuant to this subparagraph (Y). This
subparagraph (Y) is exempt from the provisions of
Section 250;

SB3019 Enrolled - 1038 - LRB104 20255 HLH 33706 b
(Z) The difference between the nondeductible
controlled foreign corporation dividends under Section
965(e)(3) of the Internal Revenue Code over the
taxable income of the taxpayer, computed without
regard to Section 965(e)(2)(A) of the Internal Revenue
Code, and without regard to any net operating loss
deduction. This subparagraph (Z) is exempt from the
provisions of Section 250; and
(AA) For taxable years beginning on or after
January 1, 2023, for any cannabis establishment
operating in this State and licensed under the
Cannabis Regulation and Tax Act or any cannabis
cultivation center or medical cannabis dispensing
organization operating in this State and licensed
under the Compassionate Use of Medical Cannabis
Program Act, an amount equal to the deductions that
were disallowed under Section 280E of the Internal
Revenue Code for the taxable year and that would not be
added back under this subsection. The provisions of
this subparagraph (AA) are exempt from the provisions
of Section 250.
(3) Special rule. For purposes of paragraph (2)(A),
"gross income" in the case of a life insurance company,
for tax years ending on and after December 31, 1994, and
prior to December 31, 2011, shall mean the gross
investment income for the taxable year and, for tax years

SB3019 Enrolled - 1039 - LRB104 20255 HLH 33706 b
ending on or after December 31, 2011, shall mean all
amounts included in life insurance gross income under
Section 803(a)(3) of the Internal Revenue Code.
(c) Trusts and estates.
(1) In general. In the case of a trust or estate, base
income means an amount equal to the taxpayer's taxable
income for the taxable year as modified by paragraph (2).
(2) Modifications. Subject to the provisions of
paragraph (3), the taxable income referred to in paragraph
(1) shall be modified by adding thereto the sum of the
following amounts:
(A) An amount equal to all amounts paid or accrued
to the taxpayer as interest or dividends during the
taxable year to the extent excluded from gross income
in the computation of taxable income;
(B) In the case of (i) an estate, $600; (ii) a
trust which, under its governing instrument, is
required to distribute all of its income currently,
$300; and (iii) any other trust, $100, but in each such
case, only to the extent such amount was deducted in
the computation of taxable income;
(C) An amount equal to the amount of tax imposed by
this Act to the extent deducted from gross income in
the computation of taxable income for the taxable
year;

SB3019 Enrolled - 1040 - LRB104 20255 HLH 33706 b
(D) The amount of any net operating loss deduction
taken in arriving at taxable income, other than a net
operating loss carried forward from a taxable year
ending prior to December 31, 1986;
(E) For taxable years in which a net operating
loss carryback or carryforward from a taxable year
ending prior to December 31, 1986 is an element of
taxable income under paragraph (1) of subsection (e)
or subparagraph (E) of paragraph (2) of subsection
(e), the amount by which addition modifications other
than those provided by this subparagraph (E) exceeded
subtraction modifications in such taxable year, with
the following limitations applied in the order that
they are listed:
(i) the addition modification relating to the
net operating loss carried back or forward to the
taxable year from any taxable year ending prior to
December 31, 1986 shall be reduced by the amount
of addition modification under this subparagraph
(E) which related to that net operating loss and
which was taken into account in calculating the
base income of an earlier taxable year, and
(ii) the addition modification relating to the
net operating loss carried back or forward to the
taxable year from any taxable year ending prior to
December 31, 1986 shall not exceed the amount of

SB3019 Enrolled - 1041 - LRB104 20255 HLH 33706 b
such carryback or carryforward;
For taxable years in which there is a net
operating loss carryback or carryforward from more
than one other taxable year ending prior to December
31, 1986, the addition modification provided in this
subparagraph (E) shall be the sum of the amounts
computed independently under the preceding provisions
of this subparagraph (E) for each such taxable year;
(F) For taxable years ending on or after January
1, 1989, an amount equal to the tax deducted pursuant
to Section 164 of the Internal Revenue Code if the
trust or estate is claiming the same tax for purposes
of the Illinois foreign tax credit under Section 601
of this Act;
(G) An amount equal to the amount of the capital
gain deduction allowable under the Internal Revenue
Code, to the extent deducted from gross income in the
computation of taxable income;
(G-5) For taxable years ending after December 31,
1997, an amount equal to any eligible remediation
costs that the trust or estate deducted in computing
adjusted gross income and for which the trust or
estate claims a credit under subsection (l) of Section
201;
(G-10) For taxable years 2001 through 2025, an
amount equal to the bonus depreciation deduction taken

SB3019 Enrolled - 1042 - LRB104 20255 HLH 33706 b
on the taxpayer's federal income tax return for the
taxable year under subsection (k) of Section 168 of
the Internal Revenue Code; for taxable years 2026 and
thereafter, an amount equal to the bonus depreciation
deduction taken on the taxpayer's federal income tax
return for the taxable year under subsection (k) or
(n) of Section 168 of the Internal Revenue Code; and
(G-11) If the taxpayer sells, transfers, abandons,
or otherwise disposes of property for which the
taxpayer was required in any taxable year to make an
addition modification under subparagraph (G-10), then
an amount equal to the aggregate amount of the
deductions taken in all taxable years under
subparagraph (R) with respect to that property.
If the taxpayer continues to own property through
the last day of the last tax year for which a
subtraction is allowed with respect to that property
under subparagraph (R) and for which the taxpayer was
allowed in any taxable year to make a subtraction
modification under subparagraph (R), then an amount
equal to that subtraction modification.
The taxpayer is required to make the addition
modification under this subparagraph only once with
respect to any one piece of property;
(G-12) An amount equal to the amount otherwise
allowed as a deduction in computing base income for

SB3019 Enrolled - 1043 - LRB104 20255 HLH 33706 b
interest paid, accrued, or incurred, directly or
indirectly, (i) for taxable years ending on or after
December 31, 2004, to a foreign person who would be a
member of the same unitary business group but for the
fact that the foreign person's business activity
outside the United States is 80% or more of the foreign
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business
group but for the fact that the person is prohibited
under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily
required to apportion business income under different
subsections of Section 304. The addition modification
required by this subparagraph shall be reduced to the
extent that dividends were included in base income of
the unitary group for the same taxable year and
received by the taxpayer or by a member of the
taxpayer's unitary business group (including amounts
included in gross income pursuant to Sections 951
through 964 of the Internal Revenue Code and amounts
included in gross income under Section 78 of the
Internal Revenue Code) with respect to the stock of
the same person to whom the interest was paid,
accrued, or incurred. For taxable years ending on and
after December 31, 2025, for purposes of applying this

SB3019 Enrolled - 1044 - LRB104 20255 HLH 33706 b
paragraph in the case of a taxpayer to which Section
163(j) of the Internal Revenue Code applies for the
taxable year, the reduction in the amount of interest
for which a deduction is allowed by reason of Section
163(j) shall be treated as allocable first to persons
who are not foreign persons referred to in this
paragraph and then to such foreign persons.
For taxable years ending before December 31, 2025,
this paragraph shall not apply to the following:
(i) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person who
is subject in a foreign country or state, other
than a state which requires mandatory unitary
reporting, to a tax on or measured by net income
with respect to such interest; or
(ii) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer can establish, based on a
preponderance of the evidence, both of the
following:
(a) the person, during the same taxable
year, paid, accrued, or incurred, the interest
to a person that is not a related member, and
(b) the transaction giving rise to the
interest expense between the taxpayer and the
person did not have as a principal purpose the

SB3019 Enrolled - 1045 - LRB104 20255 HLH 33706 b
avoidance of Illinois income tax, and is paid
pursuant to a contract or agreement that
reflects an arm's-length interest rate and
terms; or
(iii) the taxpayer can establish, based on
clear and convincing evidence, that the interest
paid, accrued, or incurred relates to a contract
or agreement entered into at arm's-length rates
and terms and the principal purpose for the
payment is not federal or Illinois tax avoidance;
or
(iv) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer establishes by clear and convincing
evidence that the adjustments are unreasonable; or
if the taxpayer and the Director agree in writing
to the application or use of an alternative method
of apportionment under Section 304(f).
For taxable years ending on or after December 31,
2025, this paragraph shall not apply to the following:
(i) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer can establish, based on a
preponderance of the evidence, both of the
following:
(a) the person, during the same taxable

SB3019 Enrolled - 1046 - LRB104 20255 HLH 33706 b
year, paid, accrued, or incurred, the interest
to a person that is not a related member, and
(b) the transaction giving rise to the
interest expense between the taxpayer and the
person did not have as a principal purpose the
avoidance of Illinois income tax, and is paid
pursuant to a contract or agreement that
reflects an arm's-length interest rate and
terms; or
(ii) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer establishes by clear and convincing
evidence that the adjustments are unreasonable; or
if the taxpayer and the Director agree in writing
to the application or use of an alternative method
of apportionment under Section 304(f).
Nothing in this subsection shall preclude the
Director from making any other adjustment otherwise
allowed under Section 404 of this Act for any tax year
beginning after the effective date of this amendment
provided such adjustment is made pursuant to
regulation adopted by the Department and such
regulations provide methods and standards by which the
Department will utilize its authority under Section
404 of this Act;
(G-13) An amount equal to the amount of intangible

SB3019 Enrolled - 1047 - LRB104 20255 HLH 33706 b
expenses and costs otherwise allowed as a deduction in
computing base income, and that were paid, accrued, or
incurred, directly or indirectly, (i) for taxable
years ending on or after December 31, 2004, to a
foreign person who would be a member of the same
unitary business group but for the fact that the
foreign person's business activity outside the United
States is 80% or more of that person's total business
activity and (ii) for taxable years ending on or after
December 31, 2008, to a person who would be a member of
the same unitary business group but for the fact that
the person is prohibited under Section 1501(a)(27)
from being included in the unitary business group
because he or she is ordinarily required to apportion
business income under different subsections of Section
304. The addition modification required by this
subparagraph shall be reduced to the extent that
dividends were included in base income of the unitary
group for the same taxable year and received by the
taxpayer or by a member of the taxpayer's unitary
business group (including amounts included in gross
income pursuant to Sections 951 through 964 of the
Internal Revenue Code and amounts included in gross
income under Section 78 of the Internal Revenue Code)
with respect to the stock of the same person to whom
the intangible expenses and costs were directly or

SB3019 Enrolled - 1048 - LRB104 20255 HLH 33706 b
indirectly paid, incurred, or accrued. The preceding
sentence shall not apply to the extent that the same
dividends caused a reduction to the addition
modification required under Section 203(c)(2)(G-12) of
this Act. As used in this subparagraph, the term
"intangible expenses and costs" includes: (1)
expenses, losses, and costs for or related to the
direct or indirect acquisition, use, maintenance or
management, ownership, sale, exchange, or any other
disposition of intangible property; (2) losses
incurred, directly or indirectly, from factoring
transactions or discounting transactions; (3) royalty,
patent, technical, and copyright fees; (4) licensing
fees; and (5) other similar expenses and costs. For
purposes of this subparagraph, "intangible property"
includes patents, patent applications, trade names,
trademarks, service marks, copyrights, mask works,
trade secrets, and similar types of intangible assets.
For taxable years ending before December 31, 2025,
this paragraph shall not apply to the following:
(i) any item of intangible expenses or costs
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person who
is subject in a foreign country or state, other
than a state which requires mandatory unitary
reporting, to a tax on or measured by net income

SB3019 Enrolled - 1049 - LRB104 20255 HLH 33706 b
with respect to such item; or
(ii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, if the taxpayer can establish, based
on a preponderance of the evidence, both of the
following:
(a) the person during the same taxable
year paid, accrued, or incurred, the
intangible expense or cost to a person that is
not a related member, and
(b) the transaction giving rise to the
intangible expense or cost between the
taxpayer and the person did not have as a
principal purpose the avoidance of Illinois
income tax, and is paid pursuant to a contract
or agreement that reflects arm's-length terms;
or
(iii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person if
the taxpayer establishes by clear and convincing
evidence, that the adjustments are unreasonable;
or if the taxpayer and the Director agree in
writing to the application or use of an
alternative method of apportionment under Section
304(f);

SB3019 Enrolled - 1050 - LRB104 20255 HLH 33706 b
For taxable years ending on or after December 31,
2025, this paragraph shall not apply to the following:
(i) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, if the taxpayer can establish, based
on a preponderance of the evidence, both of the
following:
(a) the person during the same taxable
year paid, accrued, or incurred, the
intangible expense or cost to a person that is
not a related member, and
(b) the transaction giving rise to the
intangible expense or cost between the
taxpayer and the person did not have as a
principal purpose the avoidance of Illinois
income tax, and is paid pursuant to a contract
or agreement that reflects arm's-length terms;
or
(ii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person if
the taxpayer establishes by clear and convincing
evidence, that the adjustments are unreasonable;
or if the taxpayer and the Director agree in
writing to the application or use of an
alternative method of apportionment under Section

SB3019 Enrolled - 1051 - LRB104 20255 HLH 33706 b
304(f).
Nothing in this subsection shall preclude the
Director from making any other adjustment otherwise
allowed under Section 404 of this Act for any tax year
beginning after the effective date of this amendment
provided such adjustment is made pursuant to
regulation adopted by the Department and such
regulations provide methods and standards by which the
Department will utilize its authority under Section
404 of this Act;
(G-14) For taxable years ending on or after
December 31, 2008, an amount equal to the amount of
insurance premium expenses and costs otherwise allowed
as a deduction in computing base income, and that were
paid, accrued, or incurred, directly or indirectly, to
a person who would be a member of the same unitary
business group but for the fact that the person is
prohibited under Section 1501(a)(27) from being
included in the unitary business group because he or
she is ordinarily required to apportion business
income under different subsections of Section 304. The
addition modification required by this subparagraph
shall be reduced to the extent that dividends were
included in base income of the unitary group for the
same taxable year and received by the taxpayer or by a
member of the taxpayer's unitary business group

SB3019 Enrolled - 1052 - LRB104 20255 HLH 33706 b
(including amounts included in gross income under
Sections 951 through 964 of the Internal Revenue Code
and amounts included in gross income under Section 78
of the Internal Revenue Code) with respect to the
stock of the same person to whom the premiums and costs
were directly or indirectly paid, incurred, or
accrued. The preceding sentence does not apply to the
extent that the same dividends caused a reduction to
the addition modification required under Section
203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this
Act;
(G-15) An amount equal to the credit allowable to
the taxpayer under Section 218(a) of this Act,
determined without regard to Section 218(c) of this
Act;
(G-16) For taxable years ending on or after
December 31, 2017, an amount equal to the deduction
allowed under Section 199 of the Internal Revenue Code
for the taxable year;
(G-17) the amount that is claimed as a federal
deduction when computing the taxpayer's federal
taxable income for the taxable year and that is
attributable to an endowment gift for which the
taxpayer receives a credit under the Illinois Gives
Tax Credit Act;
(G-18) For taxable years ending on and after

SB3019 Enrolled - 1053 - LRB104 20255 HLH 33706 b
December 31, 2026, an amount equal to the amount of
gain excluded from gross income under Section 1202 of
the Internal Revenue Code;
and by deducting from the total so obtained the sum of the
following amounts:
(H) An amount equal to all amounts included in
such total pursuant to the provisions of Sections
402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 408
of the Internal Revenue Code or included in such total
as distributions under the provisions of any
retirement or disability plan for employees of any
governmental agency or unit, or retirement payments to
retired partners, which payments are excluded in
computing net earnings from self employment by Section
1402 of the Internal Revenue Code and regulations
adopted pursuant thereto;
(I) The valuation limitation amount;
(J) An amount equal to the amount of any tax
imposed by this Act which was refunded to the taxpayer
and included in such total for the taxable year;
(K) An amount equal to all amounts included in
taxable income as modified by subparagraphs (A), (B),
(C), (D), (E), (F) and (G) which are exempt from
taxation by this State either by reason of its
statutes or Constitution or by reason of the
Constitution, treaties or statutes of the United

SB3019 Enrolled - 1054 - LRB104 20255 HLH 33706 b
States; provided that, in the case of any statute of
this State that exempts income derived from bonds or
other obligations from the tax imposed under this Act,
the amount exempted shall be the interest net of bond
premium amortization;
(L) With the exception of any amounts subtracted
under subparagraph (K), an amount equal to the sum of
all amounts disallowed as deductions by (i) Sections
171(a)(2) and 265(a)(2) of the Internal Revenue Code,
and all amounts of expenses allocable to interest and
disallowed as deductions by Section 265(a)(1) of the
Internal Revenue Code; and (ii) for taxable years
ending on or after August 13, 1999, Sections
171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
Internal Revenue Code, plus, (iii) for taxable years
ending on or after December 31, 2011, Section
45G(e)(3) of the Internal Revenue Code and, for
taxable years ending on or after December 31, 2008,
any amount included in gross income under Section 87
of the Internal Revenue Code; the provisions of this
subparagraph are exempt from the provisions of Section
250;
(M) An amount equal to those dividends included in
such total which were paid by a corporation which
conducts business operations in a River Edge
Redevelopment Zone or zones created under the River

SB3019 Enrolled - 1055 - LRB104 20255 HLH 33706 b
Edge Redevelopment Zone Act and conducts substantially
all of its operations in a River Edge Redevelopment
Zone or zones. This subparagraph (M) is exempt from
the provisions of Section 250;
(N) An amount equal to any contribution made to a
job training project established pursuant to the Tax
Increment Allocation Redevelopment Act;
(O) An amount equal to those dividends included in
such total that were paid by a corporation that
conducts business operations in a federally designated
Foreign Trade Zone or Sub-Zone and that is designated
a High Impact Business located in Illinois; provided
that dividends eligible for the deduction provided in
subparagraph (M) of paragraph (2) of this subsection
shall not be eligible for the deduction provided under
this subparagraph (O);
(P) An amount equal to the amount of the deduction
used to compute the federal income tax credit for
restoration of substantial amounts held under claim of
right for the taxable year pursuant to Section 1341 of
the Internal Revenue Code;
(Q) For taxable year 1999 and thereafter, an
amount equal to the amount of any (i) distributions,
to the extent includible in gross income for federal
income tax purposes, made to the taxpayer because of
his or her status as a victim of persecution for racial

SB3019 Enrolled - 1056 - LRB104 20255 HLH 33706 b
or religious reasons by Nazi Germany or any other Axis
regime or as an heir of the victim and (ii) items of
income, to the extent includible in gross income for
federal income tax purposes, attributable to, derived
from or in any way related to assets stolen from,
hidden from, or otherwise lost to a victim of
persecution for racial or religious reasons by Nazi
Germany or any other Axis regime immediately prior to,
during, and immediately after World War II, including,
but not limited to, interest on the proceeds
receivable as insurance under policies issued to a
victim of persecution for racial or religious reasons
by Nazi Germany or any other Axis regime by European
insurance companies immediately prior to and during
World War II; provided, however, this subtraction from
federal adjusted gross income does not apply to assets
acquired with such assets or with the proceeds from
the sale of such assets; provided, further, this
paragraph shall only apply to a taxpayer who was the
first recipient of such assets after their recovery
and who is a victim of persecution for racial or
religious reasons by Nazi Germany or any other Axis
regime or as an heir of the victim. The amount of and
the eligibility for any public assistance, benefit, or
similar entitlement is not affected by the inclusion
of items (i) and (ii) of this paragraph in gross income

SB3019 Enrolled - 1057 - LRB104 20255 HLH 33706 b
for federal income tax purposes. This paragraph is
exempt from the provisions of Section 250;
(R) For taxable years 2001 and thereafter, for the
taxable year in which the bonus depreciation deduction
is taken on the taxpayer's federal income tax return
under subsection (k) or (n) of Section 168 of the
Internal Revenue Code and for each applicable taxable
year thereafter, an amount equal to "x", where:
(1) "y" equals the amount of the depreciation
deduction taken for the taxable year on the
taxpayer's federal income tax return on property
for which the bonus depreciation deduction was
taken in any year under subsection (k) or (n) of
Section 168 of the Internal Revenue Code, but not
including the bonus depreciation deduction;
(2) for taxable years ending on or before
December 31, 2005, "x" equals "y" multiplied by 30
and then divided by 70 (or "y" multiplied by
0.429); and
(3) for taxable years ending after December
31, 2005:
(i) for property on which a bonus
depreciation deduction of 30% of the adjusted
basis was taken, "x" equals "y" multiplied by
30 and then divided by 70 (or "y" multiplied
by 0.429);

SB3019 Enrolled - 1058 - LRB104 20255 HLH 33706 b
(ii) for property on which a bonus
depreciation deduction of 50% of the adjusted
basis was taken, "x" equals "y" multiplied by
1.0;
(iii) for property on which a bonus
depreciation deduction of 100% of the adjusted
basis was taken in a taxable year ending on or
after December 31, 2021, "x" equals the
depreciation deduction that would be allowed
on that property if the taxpayer had made the
election under Section 168(k)(7) or Section
168(n)(6) of the Internal Revenue Code to not
claim bonus depreciation on that property; and
(iv) for property on which a bonus
depreciation deduction of a percentage other
than 30%, 50% or 100% of the adjusted basis
was taken in a taxable year ending on or after
December 31, 2021, "x" equals "y" multiplied
by 100 times the percentage bonus depreciation
on the property (that is, 100(bonus%)) and
then divided by 100 times 1 minus the
percentage bonus depreciation on the property
(that is, 100(1-bonus%)).
The aggregate amount deducted under this
subparagraph in all taxable years for any one piece of
property may not exceed the amount of the bonus

SB3019 Enrolled - 1059 - LRB104 20255 HLH 33706 b
depreciation deduction taken on that property on the
taxpayer's federal income tax return under subsection
(k) or (n) of Section 168 of the Internal Revenue Code.
This subparagraph (R) is exempt from the provisions of
Section 250;
(S) If the taxpayer sells, transfers, abandons, or
otherwise disposes of property for which the taxpayer
was required in any taxable year to make an addition
modification under subparagraph (G-10), then an amount
equal to that addition modification.
If the taxpayer continues to own property through
the last day of the last tax year for which a
subtraction is allowed with respect to that property
under subparagraph (R) and for which the taxpayer was
required in any taxable year to make an addition
modification under subparagraph (G-10), then an amount
equal to that addition modification.
The taxpayer is allowed to take the deduction
under this subparagraph only once with respect to any
one piece of property.
This subparagraph (S) is exempt from the
provisions of Section 250;
(T) The amount of (i) any interest income (net of
the deductions allocable thereto) taken into account
for the taxable year with respect to a transaction
with a taxpayer that is required to make an addition

SB3019 Enrolled - 1060 - LRB104 20255 HLH 33706 b
modification with respect to such transaction under
Section 203(a)(2)(D-17), 203(b)(2)(E-12),
203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed
the amount of such addition modification and (ii) any
income from intangible property (net of the deductions
allocable thereto) taken into account for the taxable
year with respect to a transaction with a taxpayer
that is required to make an addition modification with
respect to such transaction under Section
203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
203(d)(2)(D-8), but not to exceed the amount of such
addition modification. This subparagraph (T) is exempt
from the provisions of Section 250;
(U) An amount equal to the interest income taken
into account for the taxable year (net of the
deductions allocable thereto) with respect to
transactions with (i) a foreign person who would be a
member of the taxpayer's unitary business group but
for the fact the foreign person's business activity
outside the United States is 80% or more of that
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business
group but for the fact that the person is prohibited
under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily

SB3019 Enrolled - 1061 - LRB104 20255 HLH 33706 b
required to apportion business income under different
subsections of Section 304, but not to exceed the
addition modification required to be made for the same
taxable year under Section 203(c)(2)(G-12) for
interest paid, accrued, or incurred, directly or
indirectly, to the same person. This subparagraph (U)
is exempt from the provisions of Section 250;
(V) An amount equal to the income from intangible
property taken into account for the taxable year (net
of the deductions allocable thereto) with respect to
transactions with (i) a foreign person who would be a
member of the taxpayer's unitary business group but
for the fact that the foreign person's business
activity outside the United States is 80% or more of
that person's total business activity and (ii) for
taxable years ending on or after December 31, 2008, to
a person who would be a member of the same unitary
business group but for the fact that the person is
prohibited under Section 1501(a)(27) from being
included in the unitary business group because he or
she is ordinarily required to apportion business
income under different subsections of Section 304, but
not to exceed the addition modification required to be
made for the same taxable year under Section
203(c)(2)(G-13) for intangible expenses and costs
paid, accrued, or incurred, directly or indirectly, to

SB3019 Enrolled - 1062 - LRB104 20255 HLH 33706 b
the same foreign person. This subparagraph (V) is
exempt from the provisions of Section 250;
(W) in the case of an estate, an amount equal to
all amounts included in such total pursuant to the
provisions of Section 111 of the Internal Revenue Code
as a recovery of items previously deducted by the
decedent from adjusted gross income in the computation
of taxable income. This subparagraph (W) is exempt
from Section 250;
(X) an amount equal to the refund included in such
total of any tax deducted for federal income tax
purposes, to the extent that deduction was added back
under subparagraph (F). This subparagraph (X) is
exempt from the provisions of Section 250;
(Y) For taxable years ending on or after December
31, 2011, in the case of a taxpayer who was required to
add back any insurance premiums under Section
203(c)(2)(G-14), such taxpayer may elect to subtract
that part of a reimbursement received from the
insurance company equal to the amount of the expense
or loss (including expenses incurred by the insurance
company) that would have been taken into account as a
deduction for federal income tax purposes if the
expense or loss had been uninsured. If a taxpayer
makes the election provided for by this subparagraph
(Y), the insurer to which the premiums were paid must

SB3019 Enrolled - 1063 - LRB104 20255 HLH 33706 b
add back to income the amount subtracted by the
taxpayer pursuant to this subparagraph (Y). This
subparagraph (Y) is exempt from the provisions of
Section 250;
(Z) For taxable years beginning after December 31,
2018, the amount of excess business loss of the
taxpayer disallowed as a deduction by Section
461(l)(1)(B) of the Internal Revenue Code; and
(AA) For taxable years beginning on or after
January 1, 2023, for any cannabis establishment
operating in this State and licensed under the
Cannabis Regulation and Tax Act or any cannabis
cultivation center or medical cannabis dispensing
organization operating in this State and licensed
under the Compassionate Use of Medical Cannabis
Program Act, an amount equal to the deductions that
were disallowed under Section 280E of the Internal
Revenue Code for the taxable year and that would not be
added back under this subsection. The provisions of
this subparagraph (AA) are exempt from the provisions
of Section 250.
(3) Limitation. The amount of any modification
otherwise required under this subsection shall, under
regulations prescribed by the Department, be adjusted by
any amounts included therein which were properly paid,
credited, or required to be distributed, or permanently

SB3019 Enrolled - 1064 - LRB104 20255 HLH 33706 b
set aside for charitable purposes pursuant to Internal
Revenue Code Section 642(c) during the taxable year.
(d) Partnerships.
(1) In general. In the case of a partnership, base
income means an amount equal to the taxpayer's taxable
income for the taxable year as modified by paragraph (2).
(2) Modifications. The taxable income referred to in
paragraph (1) shall be modified by adding thereto the sum
of the following amounts:
(A) An amount equal to all amounts paid or accrued
to the taxpayer as interest or dividends during the
taxable year to the extent excluded from gross income
in the computation of taxable income;
(B) An amount equal to the amount of tax imposed by
this Act to the extent deducted from gross income for
the taxable year;
(C) The amount of deductions allowed to the
partnership pursuant to Section 707 (c) of the
Internal Revenue Code in calculating its taxable
income;
(D) An amount equal to the amount of the capital
gain deduction allowable under the Internal Revenue
Code, to the extent deducted from gross income in the
computation of taxable income;
(D-5) For taxable years 2001 through 2025, an

SB3019 Enrolled - 1065 - LRB104 20255 HLH 33706 b
amount equal to the bonus depreciation deduction taken
on the taxpayer's federal income tax return for the
taxable year under subsection (k) of Section 168 of
the Internal Revenue Code; for taxable years 2026 and
thereafter, an amount equal to the bonus depreciation
deduction taken on the taxpayer's federal income tax
return for the taxable year under subsection (k) or
(n) of Section 168 of the Internal Revenue Code;
(D-6) If the taxpayer sells, transfers, abandons,
or otherwise disposes of property for which the
taxpayer was required in any taxable year to make an
addition modification under subparagraph (D-5), then
an amount equal to the aggregate amount of the
deductions taken in all taxable years under
subparagraph (O) with respect to that property.
If the taxpayer continues to own property through
the last day of the last tax year for which a
subtraction is allowed with respect to that property
under subparagraph (O) and for which the taxpayer was
allowed in any taxable year to make a subtraction
modification under subparagraph (O), then an amount
equal to that subtraction modification.
The taxpayer is required to make the addition
modification under this subparagraph only once with
respect to any one piece of property;
(D-7) An amount equal to the amount otherwise

SB3019 Enrolled - 1066 - LRB104 20255 HLH 33706 b
allowed as a deduction in computing base income for
interest paid, accrued, or incurred, directly or
indirectly, (i) for taxable years ending on or after
December 31, 2004, to a foreign person who would be a
member of the same unitary business group but for the
fact the foreign person's business activity outside
the United States is 80% or more of the foreign
person's total business activity and (ii) for taxable
years ending on or after December 31, 2008, to a person
who would be a member of the same unitary business
group but for the fact that the person is prohibited
under Section 1501(a)(27) from being included in the
unitary business group because he or she is ordinarily
required to apportion business income under different
subsections of Section 304. The addition modification
required by this subparagraph shall be reduced to the
extent that dividends were included in base income of
the unitary group for the same taxable year and
received by the taxpayer or by a member of the
taxpayer's unitary business group (including amounts
included in gross income pursuant to Sections 951
through 964 of the Internal Revenue Code and amounts
included in gross income under Section 78 of the
Internal Revenue Code) with respect to the stock of
the same person to whom the interest was paid,
accrued, or incurred. For taxable years ending on and

SB3019 Enrolled - 1067 - LRB104 20255 HLH 33706 b
after December 31, 2025, for purposes of applying this
paragraph in the case of a taxpayer to which Section
163(j) of the Internal Revenue Code applies for the
taxable year, the reduction in the amount of interest
for which a deduction is allowed by reason of Section
163(j) shall be treated as allocable first to persons
who are not foreign persons referred to in this
paragraph and then to such foreign persons.
For taxable years ending before December 31, 2025,
this paragraph shall not apply to the following:
(i) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person who
is subject in a foreign country or state, other
than a state which requires mandatory unitary
reporting, to a tax on or measured by net income
with respect to such interest; or
(ii) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer can establish, based on a
preponderance of the evidence, both of the
following:
(a) the person, during the same taxable
year, paid, accrued, or incurred, the interest
to a person that is not a related member, and
(b) the transaction giving rise to the
interest expense between the taxpayer and the

SB3019 Enrolled - 1068 - LRB104 20255 HLH 33706 b
person did not have as a principal purpose the
avoidance of Illinois income tax, and is paid
pursuant to a contract or agreement that
reflects an arm's-length interest rate and
terms; or
(iii) the taxpayer can establish, based on
clear and convincing evidence, that the interest
paid, accrued, or incurred relates to a contract
or agreement entered into at arm's-length rates
and terms and the principal purpose for the
payment is not federal or Illinois tax avoidance;
or
(iv) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer establishes by clear and convincing
evidence that the adjustments are unreasonable; or
if the taxpayer and the Director agree in writing
to the application or use of an alternative method
of apportionment under Section 304(f).
For taxable years ending on or after December 31,
2025, this paragraph shall not apply to the following:
(i) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer can establish, based on a
preponderance of the evidence, both of the
following:

SB3019 Enrolled - 1069 - LRB104 20255 HLH 33706 b
(a) the person, during the same taxable
year, paid, accrued, or incurred, the interest
to a person that is not a related member, and
(b) the transaction giving rise to the
interest expense between the taxpayer and the
person did not have as a principal purpose the
avoidance of Illinois income tax, and is paid
pursuant to a contract or agreement that
reflects an arm's-length interest rate and
terms; or
(ii) an item of interest paid, accrued, or
incurred, directly or indirectly, to a person if
the taxpayer establishes by clear and convincing
evidence that the adjustments are unreasonable; or
if the taxpayer and the Director agree in writing
to the application or use of an alternative method
of apportionment under Section 304(f).
Nothing in this subsection shall preclude the
Director from making any other adjustment otherwise
allowed under Section 404 of this Act for any tax year
beginning after the effective date of this amendment
provided such adjustment is made pursuant to
regulation adopted by the Department and such
regulations provide methods and standards by which the
Department will utilize its authority under Section
404 of this Act; and

SB3019 Enrolled - 1070 - LRB104 20255 HLH 33706 b
(D-8) An amount equal to the amount of intangible
expenses and costs otherwise allowed as a deduction in
computing base income, and that were paid, accrued, or
incurred, directly or indirectly, (i) for taxable
years ending on or after December 31, 2004, to a
foreign person who would be a member of the same
unitary business group but for the fact that the
foreign person's business activity outside the United
States is 80% or more of that person's total business
activity and (ii) for taxable years ending on or after
December 31, 2008, to a person who would be a member of
the same unitary business group but for the fact that
the person is prohibited under Section 1501(a)(27)
from being included in the unitary business group
because he or she is ordinarily required to apportion
business income under different subsections of Section
304. The addition modification required by this
subparagraph shall be reduced to the extent that
dividends were included in base income of the unitary
group for the same taxable year and received by the
taxpayer or by a member of the taxpayer's unitary
business group (including amounts included in gross
income pursuant to Sections 951 through 964 of the
Internal Revenue Code and amounts included in gross
income under Section 78 of the Internal Revenue Code)
with respect to the stock of the same person to whom

SB3019 Enrolled - 1071 - LRB104 20255 HLH 33706 b
the intangible expenses and costs were directly or
indirectly paid, incurred or accrued. The preceding
sentence shall not apply to the extent that the same
dividends caused a reduction to the addition
modification required under Section 203(d)(2)(D-7) of
this Act. As used in this subparagraph, the term
"intangible expenses and costs" includes (1) expenses,
losses, and costs for, or related to, the direct or
indirect acquisition, use, maintenance or management,
ownership, sale, exchange, or any other disposition of
intangible property; (2) losses incurred, directly or
indirectly, from factoring transactions or discounting
transactions; (3) royalty, patent, technical, and
copyright fees; (4) licensing fees; and (5) other
similar expenses and costs. For purposes of this
subparagraph, "intangible property" includes patents,
patent applications, trade names, trademarks, service
marks, copyrights, mask works, trade secrets, and
similar types of intangible assets;
For taxable years ending on or after December 31,
2025, this paragraph shall not apply to the following:
(i) any item of intangible expenses or costs
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person who
is subject in a foreign country or state, other
than a state which requires mandatory unitary

SB3019 Enrolled - 1072 - LRB104 20255 HLH 33706 b
reporting, to a tax on or measured by net income
with respect to such item; or
(ii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, if the taxpayer can establish, based
on a preponderance of the evidence, both of the
following:
(a) the person during the same taxable
year paid, accrued, or incurred, the
intangible expense or cost to a person that is
not a related member, and
(b) the transaction giving rise to the
intangible expense or cost between the
taxpayer and the person did not have as a
principal purpose the avoidance of Illinois
income tax, and is paid pursuant to a contract
or agreement that reflects arm's-length terms;
or
(iii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person if
the taxpayer establishes by clear and convincing
evidence, that the adjustments are unreasonable;
or if the taxpayer and the Director agree in
writing to the application or use of an
alternative method of apportionment under Section

SB3019 Enrolled - 1073 - LRB104 20255 HLH 33706 b
304(f);
For taxable years ending on or after December 31,
2025, this paragraph shall not apply to the following:
(i) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, if the taxpayer can establish, based
on a preponderance of the evidence, both of the
following:
(a) the person during the same taxable
year paid, accrued, or incurred, the
intangible expense or cost to a person that is
not a related member, and
(b) the transaction giving rise to the
intangible expense or cost between the
taxpayer and the person did not have as a
principal purpose the avoidance of Illinois
income tax, and is paid pursuant to a contract
or agreement that reflects arm's-length terms;
or
(ii) any item of intangible expense or cost
paid, accrued, or incurred, directly or
indirectly, from a transaction with a person if
the taxpayer establishes by clear and convincing
evidence, that the adjustments are unreasonable;
or if the taxpayer and the Director agree in
writing to the application or use of an

SB3019 Enrolled - 1074 - LRB104 20255 HLH 33706 b
alternative method of apportionment under Section
304(f).
Nothing in this subsection shall preclude the
Director from making any other adjustment otherwise
allowed under Section 404 of this Act for any tax year
beginning after the effective date of this amendment
provided such adjustment is made pursuant to
regulation adopted by the Department and such
regulations provide methods and standards by which the
Department will utilize its authority under Section
404 of this Act;
(D-9) For taxable years ending on or after
December 31, 2008, an amount equal to the amount of
insurance premium expenses and costs otherwise allowed
as a deduction in computing base income, and that were
paid, accrued, or incurred, directly or indirectly, to
a person who would be a member of the same unitary
business group but for the fact that the person is
prohibited under Section 1501(a)(27) from being
included in the unitary business group because he or
she is ordinarily required to apportion business
income under different subsections of Section 304. The
addition modification required by this subparagraph
shall be reduced to the extent that dividends were
included in base income of the unitary group for the
same taxable year and received by the taxpayer or by a

SB3019 Enrolled - 1075 - LRB104 20255 HLH 33706 b
member of the taxpayer's unitary business group
(including amounts included in gross income under
Sections 951 through 964 of the Internal Revenue Code
and amounts included in gross income under Section 78
of the Internal Revenue Code) with respect to the
stock of the same person to whom the premiums and costs
were directly or indirectly paid, incurred, or
accrued. The preceding sentence does not apply to the
extent that the same dividends caused a reduction to
the addition modification required under Section
203(d)(2)(D-7) or Section 203(d)(2)(D-8) of this Act;
(D-10) An amount equal to the credit allowable to
the taxpayer under Section 218(a) of this Act,
determined without regard to Section 218(c) of this
Act;
(D-11) For taxable years ending on or after
December 31, 2017, an amount equal to the deduction
allowed under Section 199 of the Internal Revenue Code
for the taxable year;
(D-12) the amount that is claimed as a federal
deduction when computing the taxpayer's federal
taxable income for the taxable year and that is
attributable to an endowment gift for which the
taxpayer receives a credit under the Illinois Gives
Tax Credit Act;
(D-13) For taxable years ending on and after

SB3019 Enrolled - 1076 - LRB104 20255 HLH 33706 b
December 31, 2026, an amount equal to the amount of
gain excluded from gross income under Section 1202 of
the Internal Revenue Code;
and by deducting from the total so obtained the following
amounts:
(E) The valuation limitation amount;
(F) An amount equal to the amount of any tax
imposed by this Act which was refunded to the taxpayer
and included in such total for the taxable year;
(G) An amount equal to all amounts included in
taxable income as modified by subparagraphs (A), (B),
(C) and (D) which are exempt from taxation by this
State either by reason of its statutes or Constitution
or by reason of the Constitution, treaties or statutes
of the United States; provided that, in the case of any
statute of this State that exempts income derived from
bonds or other obligations from the tax imposed under
this Act, the amount exempted shall be the interest
net of bond premium amortization;
(H) Any income of the partnership which
constitutes personal service income as defined in
Section 1348(b)(1) of the Internal Revenue Code (as in
effect December 31, 1981) or a reasonable allowance
for compensation paid or accrued for services rendered
by partners to the partnership, whichever is greater;
this subparagraph (H) is exempt from the provisions of

SB3019 Enrolled - 1077 - LRB104 20255 HLH 33706 b
Section 250;
(I) An amount equal to all amounts of income
distributable to an entity subject to the Personal
Property Tax Replacement Income Tax imposed by
subsections (c) and (d) of Section 201 of this Act
including amounts distributable to organizations
exempt from federal income tax by reason of Section
501(a) of the Internal Revenue Code; this subparagraph
(I) is exempt from the provisions of Section 250;
(J) With the exception of any amounts subtracted
under subparagraph (G), an amount equal to the sum of
all amounts disallowed as deductions by (i) Sections
171(a)(2) and 265(a)(2) of the Internal Revenue Code,
and all amounts of expenses allocable to interest and
disallowed as deductions by Section 265(a)(1) of the
Internal Revenue Code; and (ii) for taxable years
ending on or after August 13, 1999, Sections
171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the
Internal Revenue Code, plus, (iii) for taxable years
ending on or after December 31, 2011, Section
45G(e)(3) of the Internal Revenue Code and, for
taxable years ending on or after December 31, 2008,
any amount included in gross income under Section 87
of the Internal Revenue Code; the provisions of this
subparagraph are exempt from the provisions of Section
250;

SB3019 Enrolled - 1078 - LRB104 20255 HLH 33706 b
(K) An amount equal to those dividends included in
such total which were paid by a corporation which
conducts business operations in a River Edge
Redevelopment Zone or zones created under the River
Edge Redevelopment Zone Act and conducts substantially
all of its operations from a River Edge Redevelopment
Zone or zones. This subparagraph (K) is exempt from
the provisions of Section 250;
(L) An amount equal to any contribution made to a
job training project established pursuant to the Real
Property Tax Increment Allocation Redevelopment Act;
(M) An amount equal to those dividends included in
such total that were paid by a corporation that
conducts business operations in a federally designated
Foreign Trade Zone or Sub-Zone and that is designated
a High Impact Business located in Illinois; provided
that dividends eligible for the deduction provided in
subparagraph (K) of paragraph (2) of this subsection
shall not be eligible for the deduction provided under
this subparagraph (M);
(N) An amount equal to the amount of the deduction
used to compute the federal income tax credit for
restoration of substantial amounts held under claim of
right for the taxable year pursuant to Section 1341 of
the Internal Revenue Code;
(O) For taxable years 2001 and thereafter, for the

SB3019 Enrolled - 1079 - LRB104 20255 HLH 33706 b
taxable year in which the bonus depreciation deduction
is taken on the taxpayer's federal income tax return
under subsection (k) or (n) of Section 168 of the
Internal Revenue Code and for each applicable taxable
year thereafter, an amount equal to "x", where:
(1) "y" equals the amount of the depreciation
deduction taken for the taxable year on the
taxpayer's federal income tax return on property
for which the bonus depreciation deduction was
taken in any year under subsection (k) or (n) of
Section 168 of the Internal Revenue Code, but not
including the bonus depreciation deduction;
(2) for taxable years ending on or before
December 31, 2005, "x" equals "y" multiplied by 30
and then divided by 70 (or "y" multiplied by
0.429); and
(3) for taxable years ending after December
31, 2005:
(i) for property on which a bonus
depreciation deduction of 30% of the adjusted
basis was taken, "x" equals "y" multiplied by
30 and then divided by 70 (or "y" multiplied
by 0.429);
(ii) for property on which a bonus
depreciation deduction of 50% of the adjusted
basis was taken, "x" equals "y" multiplied by

SB3019 Enrolled - 1080 - LRB104 20255 HLH 33706 b
1.0;
(iii) for property on which a bonus
depreciation deduction of 100% of the adjusted
basis was taken in a taxable year ending on or
after December 31, 2021, "x" equals the
depreciation deduction that would be allowed
on that property if the taxpayer had made the
election under Section 168(k)(7) or Section
168(n)(6) of the Internal Revenue Code to not
claim bonus depreciation on that property; and
(iv) for property on which a bonus
depreciation deduction of a percentage other
than 30%, 50% or 100% of the adjusted basis
was taken in a taxable year ending on or after
December 31, 2021, "x" equals "y" multiplied
by 100 times the percentage bonus depreciation
on the property (that is, 100(bonus%)) and
then divided by 100 times 1 minus the
percentage bonus depreciation on the property
(that is, 100(1-bonus%)).
The aggregate amount deducted under this
subparagraph in all taxable years for any one piece of
property may not exceed the amount of the bonus
depreciation deduction taken on that property on the
taxpayer's federal income tax return under subsection
(k) or (n) of Section 168 of the Internal Revenue Code.

SB3019 Enrolled - 1081 - LRB104 20255 HLH 33706 b
This subparagraph (O) is exempt from the provisions of
Section 250;
(P) If the taxpayer sells, transfers, abandons, or
otherwise disposes of property for which the taxpayer
was required in any taxable year to make an addition
modification under subparagraph (D-5), then an amount
equal to that addition modification.
If the taxpayer continues to own property through
the last day of the last tax year for which a
subtraction is allowed with respect to that property
under subparagraph (O) and for which the taxpayer was
required in any taxable year to make an addition
modification under subparagraph (D-5), then an amount
equal to that addition modification.
The taxpayer is allowed to take the deduction
under this subparagraph only once with respect to any
one piece of property.
This subparagraph (P) is exempt from the
provisions of Section 250;
(Q) The amount of (i) any interest income (net of
the deductions allocable thereto) taken into account
for the taxable year with respect to a transaction
with a taxpayer that is required to make an addition
modification with respect to such transaction under
Section 203(a)(2)(D-17), 203(b)(2)(E-12),
203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed

SB3019 Enrolled - 1082 - LRB104 20255 HLH 33706 b
the amount of such addition modification and (ii) any
income from intangible property (net of the deductions
allocable thereto) taken into account for the taxable
year with respect to a transaction with a taxpayer
that is required to make an addition modification with
respect to such transaction under Section
203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or
203(d)(2)(D-8), but not to exceed the amount of such
addition modification. This subparagraph (Q) is exempt
from Section 250;
(R) An amount equal to the interest income taken
into account for the taxable year (net of the
deductions allocable thereto) with respect to
transactions with (i) a foreign person who would be a
member of the taxpayer's unitary business group but
for the fact that the foreign person's business
activity outside the United States is 80% or more of
that person's total business activity and (ii) for
taxable years ending on or after December 31, 2008, to
a person who would be a member of the same unitary
business group but for the fact that the person is
prohibited under Section 1501(a)(27) from being
included in the unitary business group because he or
she is ordinarily required to apportion business
income under different subsections of Section 304, but
not to exceed the addition modification required to be

SB3019 Enrolled - 1083 - LRB104 20255 HLH 33706 b
made for the same taxable year under Section
203(d)(2)(D-7) for interest paid, accrued, or
incurred, directly or indirectly, to the same person.
This subparagraph (R) is exempt from Section 250;
(S) An amount equal to the income from intangible
property taken into account for the taxable year (net
of the deductions allocable thereto) with respect to
transactions with (i) a foreign person who would be a
member of the taxpayer's unitary business group but
for the fact that the foreign person's business
activity outside the United States is 80% or more of
that person's total business activity and (ii) for
taxable years ending on or after December 31, 2008, to
a person who would be a member of the same unitary
business group but for the fact that the person is
prohibited under Section 1501(a)(27) from being
included in the unitary business group because he or
she is ordinarily required to apportion business
income under different subsections of Section 304, but
not to exceed the addition modification required to be
made for the same taxable year under Section
203(d)(2)(D-8) for intangible expenses and costs paid,
accrued, or incurred, directly or indirectly, to the
same person. This subparagraph (S) is exempt from
Section 250;
(T) For taxable years ending on or after December

SB3019 Enrolled - 1084 - LRB104 20255 HLH 33706 b
31, 2011, in the case of a taxpayer who was required to
add back any insurance premiums under Section
203(d)(2)(D-9), such taxpayer may elect to subtract
that part of a reimbursement received from the
insurance company equal to the amount of the expense
or loss (including expenses incurred by the insurance
company) that would have been taken into account as a
deduction for federal income tax purposes if the
expense or loss had been uninsured. If a taxpayer
makes the election provided for by this subparagraph
(T), the insurer to which the premiums were paid must
add back to income the amount subtracted by the
taxpayer pursuant to this subparagraph (T). This
subparagraph (T) is exempt from the provisions of
Section 250; and
(U) For taxable years beginning on or after
January 1, 2023, for any cannabis establishment
operating in this State and licensed under the
Cannabis Regulation and Tax Act or any cannabis
cultivation center or medical cannabis dispensing
organization operating in this State and licensed
under the Compassionate Use of Medical Cannabis
Program Act, an amount equal to the deductions that
were disallowed under Section 280E of the Internal
Revenue Code for the taxable year and that would not be
added back under this subsection. The provisions of

SB3019 Enrolled - 1085 - LRB104 20255 HLH 33706 b
this subparagraph (U) are exempt from the provisions
of Section 250.
(e) Gross income; adjusted gross income; taxable income.
(1) In general. Subject to the provisions of paragraph
(2) and subsection (b)(3), for purposes of this Section
and Section 803(e), a taxpayer's gross income, adjusted
gross income, or taxable income for the taxable year shall
mean the amount of gross income, adjusted gross income or
taxable income properly reportable for federal income tax
purposes for the taxable year under the provisions of the
Internal Revenue Code. Taxable income may be less than
zero. However, for taxable years ending on or after
December 31, 1986, net operating loss carryforwards from
taxable years ending prior to December 31, 1986, may not
exceed the sum of federal taxable income for the taxable
year before net operating loss deduction, plus the excess
of addition modifications over subtraction modifications
for the taxable year. For taxable years ending prior to
December 31, 1986, taxable income may never be an amount
in excess of the net operating loss for the taxable year as
defined in subsections (c) and (d) of Section 172 of the
Internal Revenue Code, provided that when taxable income
of a corporation (other than a Subchapter S corporation),
trust, or estate is less than zero and addition
modifications, other than those provided by subparagraph

SB3019 Enrolled - 1086 - LRB104 20255 HLH 33706 b
(E) of paragraph (2) of subsection (b) for corporations or
subparagraph (E) of paragraph (2) of subsection (c) for
trusts and estates, exceed subtraction modifications, an
addition modification must be made under those
subparagraphs for any other taxable year to which the
taxable income less than zero (net operating loss) is
applied under Section 172 of the Internal Revenue Code or
under subparagraph (E) of paragraph (2) of this subsection
(e) applied in conjunction with Section 172 of the
Internal Revenue Code.
(2) Special rule. For purposes of paragraph (1) of
this subsection, the taxable income properly reportable
for federal income tax purposes shall mean:
(A) Certain life insurance companies. In the case
of a life insurance company subject to the tax imposed
by Section 801 of the Internal Revenue Code, life
insurance company taxable income, plus the amount of
distribution from pre-1984 policyholder surplus
accounts as calculated under Section 815a of the
Internal Revenue Code;
(B) Certain other insurance companies. In the case
of mutual insurance companies subject to the tax
imposed by Section 831 of the Internal Revenue Code,
insurance company taxable income;
(C) Regulated investment companies. In the case of
a regulated investment company subject to the tax

SB3019 Enrolled - 1087 - LRB104 20255 HLH 33706 b
imposed by Section 852 of the Internal Revenue Code,
investment company taxable income;
(D) Real estate investment trusts. In the case of
a real estate investment trust subject to the tax
imposed by Section 857 of the Internal Revenue Code,
real estate investment trust taxable income;
(E) Consolidated corporations. In the case of a
corporation which is a member of an affiliated group
of corporations filing a consolidated income tax
return for the taxable year for federal income tax
purposes, taxable income determined as if such
corporation had filed a separate return for federal
income tax purposes for the taxable year and each
preceding taxable year for which it was a member of an
affiliated group. For purposes of this subparagraph,
the taxpayer's separate taxable income shall be
determined as if the election provided by Section
243(b)(2) of the Internal Revenue Code had been in
effect for all such years;
(F) Cooperatives. In the case of a cooperative
corporation or association, the taxable income of such
organization determined in accordance with the
provisions of Section 1381 through 1388 of the
Internal Revenue Code, but without regard to the
prohibition against offsetting losses from patronage
activities against income from nonpatronage

SB3019 Enrolled - 1088 - LRB104 20255 HLH 33706 b
activities; except that a cooperative corporation or
association may make an election to follow its federal
income tax treatment of patronage losses and
nonpatronage losses. In the event such election is
made, such losses shall be computed and carried over
in a manner consistent with subsection (a) of Section
207 of this Act and apportioned by the apportionment
factor reported by the cooperative on its Illinois
income tax return filed for the taxable year in which
the losses are incurred. The election shall be
effective for all taxable years with original returns
due on or after the date of the election. In addition,
the cooperative may file an amended return or returns,
as allowed under this Act, to provide that the
election shall be effective for losses incurred or
carried forward for taxable years occurring prior to
the date of the election. Once made, the election may
only be revoked upon approval of the Director. The
Department shall adopt rules setting forth
requirements for documenting the elections and any
resulting Illinois net loss and the standards to be
used by the Director in evaluating requests to revoke
elections. Public Act 96-932 is declaratory of
existing law;
(G) Subchapter S corporations. In the case of: (i)
a Subchapter S corporation for which there is in

SB3019 Enrolled - 1089 - LRB104 20255 HLH 33706 b
effect an election for the taxable year under Section
1362 of the Internal Revenue Code, the taxable income
of such corporation determined in accordance with
Section 1363(b) of the Internal Revenue Code, except
that taxable income shall take into account those
items which are required by Section 1363(b)(1) of the
Internal Revenue Code to be separately stated; and
(ii) a Subchapter S corporation for which there is in
effect a federal election to opt out of the provisions
of the Subchapter S Revision Act of 1982 and have
applied instead the prior federal Subchapter S rules
as in effect on July 1, 1982, the taxable income of
such corporation determined in accordance with the
federal Subchapter S rules as in effect on July 1,
1982; and
(H) Partnerships. In the case of a partnership,
taxable income determined in accordance with Section
703 of the Internal Revenue Code, except that taxable
income shall take into account those items which are
required by Section 703(a)(1) to be separately stated
but which would be taken into account by an individual
in calculating his taxable income.
(3) Recapture of business expenses on disposition of
asset or business. Notwithstanding any other law to the
contrary, if in prior years income from an asset or
business has been classified as business income and in a

SB3019 Enrolled - 1090 - LRB104 20255 HLH 33706 b
later year is demonstrated to be non-business income, then
all expenses, without limitation, deducted in such later
year and in the 2 immediately preceding taxable years
related to that asset or business that generated the
non-business income shall be added back and recaptured as
business income in the year of the disposition of the
asset or business. Such amount shall be apportioned to
Illinois using the greater of the apportionment fraction
computed for the business under Section 304 of this Act
for the taxable year or the average of the apportionment
fractions computed for the business under Section 304 of
this Act for the taxable year and for the 2 immediately
preceding taxable years.
(f) Valuation limitation amount.
(1) In general. The valuation limitation amount
referred to in subsections (a)(2)(G), (c)(2)(I) and
(d)(2)(E) is an amount equal to:
(A) The sum of the pre-August 1, 1969 appreciation
amounts (to the extent consisting of gain reportable
under the provisions of Section 1245 or 1250 of the
Internal Revenue Code) for all property in respect of
which such gain was reported for the taxable year;
plus
(B) The lesser of (i) the sum of the pre-August 1,
1969 appreciation amounts (to the extent consisting of

SB3019 Enrolled - 1091 - LRB104 20255 HLH 33706 b
capital gain) for all property in respect of which
such gain was reported for federal income tax purposes
for the taxable year, or (ii) the net capital gain for
the taxable year, reduced in either case by any amount
of such gain included in the amount determined under
subsection (a)(2)(F) or (c)(2)(H).
(2) Pre-August 1, 1969 appreciation amount.
(A) If the fair market value of property referred
to in paragraph (1) was readily ascertainable on
August 1, 1969, the pre-August 1, 1969 appreciation
amount for such property is the lesser of (i) the
excess of such fair market value over the taxpayer's
basis (for determining gain) for such property on that
date (determined under the Internal Revenue Code as in
effect on that date), or (ii) the total gain realized
and reportable for federal income tax purposes in
respect of the sale, exchange or other disposition of
such property.
(B) If the fair market value of property referred
to in paragraph (1) was not readily ascertainable on
August 1, 1969, the pre-August 1, 1969 appreciation
amount for such property is that amount which bears
the same ratio to the total gain reported in respect of
the property for federal income tax purposes for the
taxable year, as the number of full calendar months in
that part of the taxpayer's holding period for the

SB3019 Enrolled - 1092 - LRB104 20255 HLH 33706 b
property ending July 31, 1969 bears to the number of
full calendar months in the taxpayer's entire holding
period for the property.
(C) The Department shall prescribe such
regulations as may be necessary to carry out the
purposes of this paragraph.
(g) Double deductions. Unless specifically provided
otherwise, nothing in this Section shall permit the same item
to be deducted more than once.
(h) Legislative intention. Except as expressly provided by
this Section there shall be no modifications or limitations on
the amounts of income, gain, loss or deduction taken into
account in determining gross income, adjusted gross income or
taxable income for federal income tax purposes for the taxable
year, or in the amount of such items entering into the
computation of base income and net income under this Act for
such taxable year, whether in respect of property values as of
August 1, 1969 or otherwise.
(Source: P.A. 103-8, eff. 6-7-23; 103-478, eff. 1-1-24;
103-592, Article 10, Section 10-900, eff. 6-7-24; 103-592,
Article 170, Section 170-90, eff. 6-7-24; 103-605, eff.
7-1-24; 103-647, eff. 7-1-24; 104-6, eff. 6-16-25; 104-417,
eff. 8-15-25; 104-453, eff. 12-12-25.)

SB3019 Enrolled - 1093 - LRB104 20255 HLH 33706 b
ARTICLE 125
Section 125-5. The Use Tax Act is amended by changing
Sections 3-10 and 9 as follows:
(35 ILCS 105/3-10) from Ch. 120, par. 439.33-10
Sec. 3-10. Rate of tax. Unless otherwise provided in this
Section, the tax imposed by this Act is at the rate of 6.25% of
either the selling price or the fair market value, if any, of
the tangible personal property, which, on and after January 1,
2025, includes leases of tangible personal property. In all
cases where property functionally used or consumed is the same
as the property that was purchased at retail, then the tax is
imposed on the selling price of the property. In all cases
where property functionally used or consumed is a by-product
or waste product that has been refined, manufactured, or
produced from property purchased at retail, then the tax is
imposed on the lower of the fair market value, if any, of the
specific property so used in this State or on the selling price
of the property purchased at retail. For purposes of this
Section "fair market value" means the price at which property
would change hands between a willing buyer and a willing
seller, neither being under any compulsion to buy or sell and
both having reasonable knowledge of the relevant facts. The
fair market value shall be established by Illinois sales by
the taxpayer of the same property as that functionally used or

SB3019 Enrolled - 1094 - LRB104 20255 HLH 33706 b
consumed, or if there are no such sales by the taxpayer, then
comparable sales or purchases of property of like kind and
character in Illinois.
Beginning on July 1, 2000 and through December 31, 2000,
with respect to motor fuel, as defined in Section 1.1 of the
Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
the Use Tax Act, the tax is imposed at the rate of 1.25%.
Beginning on August 6, 2010 through August 15, 2010, and
beginning again on August 5, 2022 through August 14, 2022, and
beginning again on August 7, 2026 through August 16, 2026,
with respect to sales tax holiday items as defined in Section
3-6 of this Act, the tax is imposed at the rate of 1.25%.
With respect to gasohol, the tax imposed by this Act
applies to (i) 70% of the proceeds of sales made on or after
January 1, 1990, and before July 1, 2003, (ii) 80% of the
proceeds of sales made on or after July 1, 2003 and on or
before July 1, 2017, (iii) 100% of the proceeds of sales made
after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
the proceeds of sales made on or after January 1, 2024 and on
or before December 31, 2028, and (v) 100% of the proceeds of
sales made after December 31, 2028. If, at any time, however,
the tax under this Act on sales of gasohol is imposed at the
rate of 1.25%, then the tax imposed by this Act applies to 100%
of the proceeds of sales of gasohol made during that time.
With respect to mid-range ethanol blends, the tax imposed
by this Act applies to (i) 80% of the proceeds of sales made on

SB3019 Enrolled - 1095 - LRB104 20255 HLH 33706 b
or after January 1, 2024 and on or before December 31, 2028 and
(ii) 100% of the proceeds of sales made thereafter. If, at any
time, however, the tax under this Act on sales of mid-range
ethanol blends is imposed at the rate of 1.25%, then the tax
imposed by this Act applies to 100% of the proceeds of sales of
mid-range ethanol blends made during that time.
With respect to majority blended ethanol fuel, the tax
imposed by this Act does not apply to the proceeds of sales
made on or after July 1, 2003 and on or before December 31,
2028 but applies to 100% of the proceeds of sales made
thereafter.
With respect to biodiesel blends with no less than 1% and
no more than 10% biodiesel, the tax imposed by this Act applies
to (i) 80% of the proceeds of sales made on or after July 1,
2003 and on or before December 31, 2018 and (ii) 100% of the
proceeds of sales made after December 31, 2018 and before
January 1, 2024. On and after January 1, 2024 and on or before
December 31, 2030, the taxation of biodiesel, renewable
diesel, and biodiesel blends shall be as provided in Section
3-5.1. If, at any time, however, the tax under this Act on
sales of biodiesel blends with no less than 1% and no more than
10% biodiesel is imposed at the rate of 1.25%, then the tax
imposed by this Act applies to 100% of the proceeds of sales of
biodiesel blends with no less than 1% and no more than 10%
biodiesel made during that time.
With respect to biodiesel and biodiesel blends with more

SB3019 Enrolled - 1096 - LRB104 20255 HLH 33706 b
than 10% but no more than 99% biodiesel, the tax imposed by
this Act does not apply to the proceeds of sales made on or
after July 1, 2003 and on or before December 31, 2023. On and
after January 1, 2024 and on or before December 31, 2030, the
taxation of biodiesel, renewable diesel, and biodiesel blends
shall be as provided in Section 3-5.1.
Until July 1, 2022 and from July 1, 2023 through December
31, 2025, with respect to food for human consumption that is to
be consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption), the tax is imposed at the rate of 1%.
Beginning on July 1, 2022 and until July 1, 2023, with respect
to food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
food consisting of or infused with adult use cannabis, soft
drinks, and food that has been prepared for immediate
consumption), the tax is imposed at the rate of 0%. On and
after January 1, 2026, food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, candy, and food that has been
prepared for immediate consumption) is exempt from the tax
imposed by this Act.
With respect to prescription and nonprescription
medicines, drugs, medical appliances, products classified as

SB3019 Enrolled - 1097 - LRB104 20255 HLH 33706 b
Class III medical devices by the United States Food and Drug
Administration that are used for cancer treatment pursuant to
a prescription, as well as any accessories and components
related to those devices, modifications to a motor vehicle for
the purpose of rendering it usable by a person with a
disability, and insulin, blood sugar testing materials,
syringes, and needles used by human diabetics, the tax is
imposed at the rate of 1%. For the purposes of this Section,
until September 1, 2009: the term "soft drinks" means any
complete, finished, ready-to-use, non-alcoholic drink, whether
carbonated or not, including, but not limited to, soda water,
cola, fruit juice, vegetable juice, carbonated water, and all
other preparations commonly known as soft drinks of whatever
kind or description that are contained in any closed or sealed
bottle, can, carton, or container, regardless of size; but
"soft drinks" does not include coffee, tea, non-carbonated
water, infant formula, milk or milk products as defined in the
Grade A Pasteurized Milk and Milk Products Act, or drinks
containing 50% or more natural fruit or vegetable juice.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "soft drinks" means non-alcoholic
beverages that contain natural or artificial sweeteners. "Soft
drinks" does not include beverages that contain milk or milk
products, soy, rice or similar milk substitutes, or greater
than 50% of vegetable or fruit juice by volume.
Until August 1, 2009, and notwithstanding any other

SB3019 Enrolled - 1098 - LRB104 20255 HLH 33706 b
provisions of this Act, "food for human consumption that is to
be consumed off the premises where it is sold" includes all
food sold through a vending machine, except soft drinks and
food products that are dispensed hot from a vending machine,
regardless of the location of the vending machine. Beginning
August 1, 2009, and notwithstanding any other provisions of
this Act, "food for human consumption that is to be consumed
off the premises where it is sold" includes all food sold
through a vending machine, except soft drinks, candy, and food
products that are dispensed hot from a vending machine,
regardless of the location of the vending machine.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "food for human consumption that
is to be consumed off the premises where it is sold" does not
include candy. For purposes of this Section, "candy" means a
preparation of sugar, honey, or other natural or artificial
sweeteners in combination with chocolate, fruits, nuts or
other ingredients or flavorings in the form of bars, drops, or
pieces. "Candy" does not include any preparation that contains
flour or requires refrigeration.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "nonprescription medicines and
drugs" does not include grooming and hygiene products. For
purposes of this Section, "grooming and hygiene products"
includes, but is not limited to, soaps and cleaning solutions,
shampoo, toothpaste, mouthwash, antiperspirants, and sun tan

SB3019 Enrolled - 1099 - LRB104 20255 HLH 33706 b
lotions and screens, unless those products are available by
prescription only, regardless of whether the products meet the
definition of "over-the-counter-drugs". For the purposes of
this paragraph, "over-the-counter-drug" means a drug for human
use that contains a label that identifies the product as a drug
as required by 21 CFR 201.66. The "over-the-counter-drug"
label includes:
(A) a "Drug Facts" panel; or
(B) a statement of the "active ingredient(s)" with a
list of those ingredients contained in the compound,
substance or preparation.
Beginning on January 1, 2014 (the effective date of Public
Act 98-122), "prescription and nonprescription medicines and
drugs" includes medical cannabis purchased from a registered
dispensing organization under the Compassionate Use of Medical
Cannabis Program Act.
As used in this Section, "adult use cannabis" means
cannabis subject to tax under the Cannabis Cultivation
Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
and does not include cannabis subject to tax under the
Compassionate Use of Medical Cannabis Program Act.
If the property that is purchased at retail from a
retailer is acquired outside Illinois and used outside
Illinois before being brought to Illinois for use here and is
taxable under this Act, the "selling price" on which the tax is
computed shall be reduced by an amount that represents a

SB3019 Enrolled - 1100 - LRB104 20255 HLH 33706 b
reasonable allowance for depreciation for the period of prior
out-of-state use. No depreciation is allowed in cases where
the tax under this Act is imposed on lease receipts.
(Source: P.A. 103-9, eff. 6-7-23; 103-154, eff. 6-30-23;
103-592, eff. 1-1-25; 103-781, eff. 8-5-24; 104-417, eff.
8-15-25.)
(35 ILCS 105/9)
(Text of Section before amendment by P.A. 104-457)
Sec. 9. Except as to motor vehicles, watercraft, aircraft,
and trailers that are required to be registered with an agency
of this State, each retailer required or authorized to collect
the tax imposed by this Act shall pay to the Department the
amount of such tax (except as otherwise provided) at the time
when he is required to file his return for the period during
which such tax was collected, less a discount of 2.1% prior to
January 1, 1990, and 1.75% on and after January 1, 1990, or $5
per calendar year, whichever is greater, which is allowed to
reimburse the retailer for expenses incurred in collecting the
tax, keeping records, preparing and filing returns, remitting
the tax and supplying data to the Department on request.
Beginning with returns due on or after January 1, 2025, the
discount allowed in this Section, the Retailers' Occupation
Tax Act, the Service Occupation Tax Act, and the Service Use
Tax Act, including any local tax administered by the
Department and reported on the same return, shall not exceed

SB3019 Enrolled - 1101 - LRB104 20255 HLH 33706 b
$1,000 per month in the aggregate for returns other than
transaction returns filed during the month. When determining
the discount allowed under this Section, retailers shall
include the amount of tax that would have been due at the 6.25%
rate but for the 1.25% rate imposed on sales tax holiday items
under Public Act 102-700 and under this amendatory Act of the
104th General Assembly. The discount under this Section is not
allowed for the 1.25% portion of taxes paid on aviation fuel
that is subject to the revenue use requirements of 49 U.S.C.
47107(b) and 49 U.S.C. 47133. When determining the discount
allowed under this Section, retailers shall include the amount
of tax that would have been due at the 1% rate but for the 0%
rate imposed under Public Act 102-700. In the case of
retailers who report and pay the tax on a transaction by
transaction basis, as provided in this Section, such discount
shall be taken with each such tax remittance instead of when
such retailer files his periodic return, but, beginning with
returns due on or after January 1, 2025, the discount allowed
under this Section and the Retailers' Occupation Tax Act,
including any local tax administered by the Department and
reported on the same transaction return, shall not exceed
$1,000 per month for all transaction returns filed during the
month. The discount allowed under this Section is allowed only
for returns that are filed in the manner required by this Act.
The Department may disallow the discount for retailers whose
certificate of registration is revoked at the time the return

SB3019 Enrolled - 1102 - LRB104 20255 HLH 33706 b
is filed, but only if the Department's decision to revoke the
certificate of registration has become final. A retailer need
not remit that part of any tax collected by him to the extent
that he is required to remit and does remit the tax imposed by
the Retailers' Occupation Tax Act, with respect to the sale of
the same property.
Where such tangible personal property is sold under a
conditional sales contract, or under any other form of sale
wherein the payment of the principal sum, or a part thereof, is
extended beyond the close of the period for which the return is
filed, the retailer, in collecting the tax (except as to motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State), may collect for
each tax return period only the tax applicable to that part of
the selling price actually received during such tax return
period.
In the case of leases, except as otherwise provided in
this Act, the lessor, in collecting the tax, may collect for
each tax return period only the tax applicable to that part of
the selling price actually received during such tax return
period.
Except as provided in this Section, on or before the
twentieth day of each calendar month, such retailer shall file
a return for the preceding calendar month. Such return shall
be filed on forms prescribed by the Department and shall
furnish such information as the Department may reasonably

SB3019 Enrolled - 1103 - LRB104 20255 HLH 33706 b
require. The return shall include the gross receipts on food
for human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, food
consisting of or infused with adult use cannabis, soft drinks,
and food that has been prepared for immediate consumption)
which were received during the preceding calendar month,
quarter, or year, as appropriate, and upon which tax would
have been due but for the 0% rate imposed under Public Act
102-700. The return shall also include the amount of tax that
would have been due on food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption) but for the 0% rate imposed under
Public Act 102-700.
On and after January 1, 2018, except for returns required
to be filed prior to January 1, 2023 for motor vehicles,
watercraft, aircraft, and trailers that are required to be
registered with an agency of this State, with respect to
retailers whose annual gross receipts average $20,000 or more,
all returns required to be filed pursuant to this Act shall be
filed electronically. On and after January 1, 2023, with
respect to retailers whose annual gross receipts average
$20,000 or more, all returns required to be filed pursuant to
this Act, including, but not limited to, returns for motor
vehicles, watercraft, aircraft, and trailers that are required

SB3019 Enrolled - 1104 - LRB104 20255 HLH 33706 b
to be registered with an agency of this State, shall be filed
electronically. Retailers who demonstrate that they do not
have access to the Internet or demonstrate hardship in filing
electronically may petition the Department to waive the
electronic filing requirement.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first 2 two months of each calendar quarter, on or
before the twentieth day of the following calendar month,
stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in the business of selling tangible
personal property at retail in this State;
3. The total amount of taxable receipts received by
him during the preceding calendar month from sales of
tangible personal property by him during such preceding
calendar month, including receipts from charge and time
sales, but less all deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and

SB3019 Enrolled - 1105 - LRB104 20255 HLH 33706 b
6. Such other reasonable information as the Department
may require.
Each retailer required or authorized to collect the tax
imposed by this Act on aviation fuel sold at retail in this
State during the preceding calendar month shall, instead of
reporting and paying tax on aviation fuel as otherwise
required by this Section, report and pay such tax on a separate
aviation fuel tax return. The requirements related to the
return shall be as otherwise provided in this Section.
Notwithstanding any other provisions of this Act to the
contrary, retailers collecting tax on aviation fuel shall file
all aviation fuel tax returns and shall make all aviation fuel
tax payments by electronic means in the manner and form
required by the Department. For purposes of this Section,
"aviation fuel" means jet fuel and aviation gasoline.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Notwithstanding any other provision of this Act to the
contrary, retailers subject to tax on cannabis shall file all
cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all

SB3019 Enrolled - 1106 - LRB104 20255 HLH 33706 b
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall
make all payments required by rules of the Department by
electronic funds transfer. Beginning October 1, 1995, a
taxpayer who has an average monthly tax liability of $50,000
or more shall make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1,
2000, a taxpayer who has an annual tax liability of $200,000 or
more shall make all payments required by rules of the
Department by electronic funds transfer. The term "annual tax
liability" shall be the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year. The term "average monthly
tax liability" means the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year divided by 12. Beginning
on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the
Department of Revenue Law shall make all payments required by
rules of the Department by electronic funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make
payments by electronic funds transfer. All taxpayers required

SB3019 Enrolled - 1107 - LRB104 20255 HLH 33706 b
to make payments by electronic funds transfer shall make those
payments for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those
payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
Before October 1, 2000, if the taxpayer's average monthly
tax liability to the Department under this Act, the Retailers'
Occupation Tax Act, the Service Occupation Tax Act, the
Service Use Tax Act was $10,000 or more during the preceding 4
complete calendar quarters, he shall file a return with the
Department each month by the 20th day of the month next
following the month during which such tax liability is
incurred and shall make payments to the Department on or
before the 7th, 15th, 22nd and last day of the month during
which such liability is incurred. On and after October 1,
2000, if the taxpayer's average monthly tax liability to the
Department under this Act, the Retailers' Occupation Tax Act,
the Service Occupation Tax Act, and the Service Use Tax Act was
$20,000 or more during the preceding 4 complete calendar

SB3019 Enrolled - 1108 - LRB104 20255 HLH 33706 b
quarters, he shall file a return with the Department each
month by the 20th day of the month next following the month
during which such tax liability is incurred and shall make
payment to the Department on or before the 7th, 15th, 22nd and
last day of the month during which such liability is incurred.
If the month during which such tax liability is incurred began
prior to January 1, 1985, each payment shall be in an amount
equal to 1/4 of the taxpayer's actual liability for the month
or an amount set by the Department not to exceed 1/4 of the
average monthly liability of the taxpayer to the Department
for the preceding 4 complete calendar quarters (excluding the
month of highest liability and the month of lowest liability
in such 4 quarter period). If the month during which such tax
liability is incurred begins on or after January 1, 1985, and
prior to January 1, 1987, each payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the
month or 27.5% of the taxpayer's liability for the same
calendar month of the preceding year. If the month during
which such tax liability is incurred begins on or after
January 1, 1987, and prior to January 1, 1988, each payment
shall be in an amount equal to 22.5% of the taxpayer's actual
liability for the month or 26.25% of the taxpayer's liability
for the same calendar month of the preceding year. If the month
during which such tax liability is incurred begins on or after
January 1, 1988, and prior to January 1, 1989, or begins on or
after January 1, 1996, each payment shall be in an amount equal

SB3019 Enrolled - 1109 - LRB104 20255 HLH 33706 b
to 22.5% of the taxpayer's actual liability for the month or
25% of the taxpayer's liability for the same calendar month of
the preceding year. If the month during which such tax
liability is incurred begins on or after January 1, 1989, and
prior to January 1, 1996, each payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the
month or 25% of the taxpayer's liability for the same calendar
month of the preceding year or 100% of the taxpayer's actual
liability for the quarter monthly reporting period. The amount
of such quarter monthly payments shall be credited against the
final tax liability of the taxpayer's return for that month.
Before October 1, 2000, once applicable, the requirement of
the making of quarter monthly payments to the Department shall
continue until such taxpayer's average monthly liability to
the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the
month of lowest liability) is less than $9,000, or until such
taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $10,000. However, if a
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $10,000
threshold stated above, then such taxpayer may petition the
Department for change in such taxpayer's reporting status. On

SB3019 Enrolled - 1110 - LRB104 20255 HLH 33706 b
and after October 1, 2000, once applicable, the requirement of
the making of quarter monthly payments to the Department shall
continue until such taxpayer's average monthly liability to
the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the
month of lowest liability) is less than $19,000 or until such
taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $20,000. However, if a
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $20,000
threshold stated above, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status.
The Department shall change such taxpayer's reporting status
unless it finds that such change is seasonal in nature and not
likely to be long term. Quarter monthly payment status shall
be determined under this paragraph as if the rate reduction to
1.25% in Public Act 102-700 and in this amendatory Act of the
104th General Assembly on sales tax holiday items had not
occurred. For quarter monthly payments due on or after July 1,
2023 and through June 30, 2024, and on or after July 1, 2027
through June 30, 2028 "25% of the taxpayer's liability for the
same calendar month of the preceding year" shall be determined
as if the rate reduction to 1.25% in Public Act 102-700 and in

SB3019 Enrolled - 1111 - LRB104 20255 HLH 33706 b
this amendatory Act of 104th General Assembly on sales tax
holiday items had not occurred. Quarter monthly payment status
shall be determined under this paragraph as if the rate
reduction to 0% in Public Act 102-700 on food for human
consumption that is to be consumed off the premises where it is
sold (other than alcoholic beverages, food consisting of or
infused with adult use cannabis, soft drinks, and food that
has been prepared for immediate consumption) had not occurred.
For quarter monthly payments due under this paragraph on or
after July 1, 2023 and through June 30, 2024, "25% of the
taxpayer's liability for the same calendar month of the
preceding year" shall be determined as if the rate reduction
to 0% in Public Act 102-700 had not occurred. If any such
quarter monthly payment is not paid at the time or in the
amount required by this Section, then the taxpayer shall be
liable for penalties and interest on the difference between
the minimum amount due and the amount of such quarter monthly
payment actually and timely paid, except insofar as the
taxpayer has previously made payments for that month to the
Department in excess of the minimum payments previously due as
provided in this Section. The Department shall make reasonable
rules and regulations to govern the quarter monthly payment
amount and quarter monthly payment dates for taxpayers who
file on other than a calendar monthly basis.
If any such payment provided for in this Section exceeds
the taxpayer's liabilities under this Act, the Retailers'

SB3019 Enrolled - 1112 - LRB104 20255 HLH 33706 b
Occupation Tax Act, the Service Occupation Tax Act and the
Service Use Tax Act, as shown by an original monthly return,
the Department shall issue to the taxpayer a credit memorandum
no later than 30 days after the date of payment, which
memorandum may be submitted by the taxpayer to the Department
in payment of tax liability subsequently to be remitted by the
taxpayer to the Department or be assigned by the taxpayer to a
similar taxpayer under this Act, the Retailers' Occupation Tax
Act, the Service Occupation Tax Act or the Service Use Tax Act,
in accordance with reasonable rules and regulations to be
prescribed by the Department, except that if such excess
payment is shown on an original monthly return and is made
after December 31, 1986, no credit memorandum shall be issued,
unless requested by the taxpayer. If no such request is made,
the taxpayer may credit such excess payment against tax
liability subsequently to be remitted by the taxpayer to the
Department under this Act, the Retailers' Occupation Tax Act,
the Service Occupation Tax Act or the Service Use Tax Act, in
accordance with reasonable rules and regulations prescribed by
the Department. If the Department subsequently determines that
all or any part of the credit taken was not actually due to the
taxpayer, the taxpayer's vendor's discount shall be reduced,
if necessary, to reflect the difference between the credit
taken and that actually due, and the taxpayer shall be liable
for penalties and interest on such difference.
If the retailer is otherwise required to file a monthly

SB3019 Enrolled - 1113 - LRB104 20255 HLH 33706 b
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February, and March of a given
year being due by April 20 of such year; with the return for
April, May and June of a given year being due by July 20 of
such year; with the return for July, August and September of a
given year being due by October 20 of such year, and with the
return for October, November and December of a given year
being due by January 20 of the following year.
If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
liability to the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January 20
of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act concerning
the time within which a retailer may file his return, in the
case of any retailer who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such retailer shall file a final return under this Act with the
Department not more than one month after discontinuing such
business.

SB3019 Enrolled - 1114 - LRB104 20255 HLH 33706 b
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, except as otherwise provided in this
Section, every retailer selling this kind of tangible personal
property shall file, with the Department, upon a form to be
prescribed and supplied by the Department, a separate return
for each such item of tangible personal property which the
retailer sells, except that if, in the same transaction, (i) a
retailer of aircraft, watercraft, motor vehicles or trailers
transfers more than one aircraft, watercraft, motor vehicle or
trailer to another aircraft, watercraft, motor vehicle or
trailer retailer for the purpose of resale or (ii) a retailer
of aircraft, watercraft, motor vehicles, or trailers transfers
more than one aircraft, watercraft, motor vehicle, or trailer
to a purchaser for use as a qualifying rolling stock as
provided in Section 3-55 of this Act, then that seller may
report the transfer of all the aircraft, watercraft, motor
vehicles or trailers involved in that transaction to the
Department on the same uniform invoice-transaction reporting
return form. For purposes of this Section, "watercraft" means
a Class 2, Class 3, or Class 4 watercraft as defined in Section
3-2 of the Boat Registration and Safety Act, a personal
watercraft, or any boat equipped with an inboard motor.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, every person who is engaged in the

SB3019 Enrolled - 1115 - LRB104 20255 HLH 33706 b
business of leasing or renting such items and who, in
connection with such business, sells any such item to a
retailer for the purpose of resale is, notwithstanding any
other provision of this Section to the contrary, authorized to
meet the return-filing requirement of this Act by reporting
the transfer of all the aircraft, watercraft, motor vehicles,
or trailers transferred for resale during a month to the
Department on the same uniform invoice-transaction reporting
return form on or before the 20th of the month following the
month in which the transfer takes place. Notwithstanding any
other provision of this Act to the contrary, all returns filed
under this paragraph must be filed by electronic means in the
manner and form as required by the Department.
The transaction reporting return in the case of motor
vehicles or trailers that are required to be registered with
an agency of this State, shall be the same document as the
Uniform Invoice referred to in Section 5-402 of the Illinois
Vehicle Code and must show the name and address of the seller;
the name and address of the purchaser; the amount of the
selling price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 2 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling
price; the amount of tax due from the retailer with respect to

SB3019 Enrolled - 1116 - LRB104 20255 HLH 33706 b
such transaction; the amount of tax collected from the
purchaser by the retailer on such transaction (or satisfactory
evidence that such tax is not due in that particular instance,
if that is claimed to be the fact); the place and date of the
sale; a sufficient identification of the property sold; such
other information as is required in Section 5-402 of the
Illinois Vehicle Code, and such other information as the
Department may reasonably require.
The transaction reporting return in the case of watercraft
and aircraft must show the name and address of the seller; the
name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 2 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling
price; the amount of tax due from the retailer with respect to
such transaction; the amount of tax collected from the
purchaser by the retailer on such transaction (or satisfactory
evidence that such tax is not due in that particular instance,
if that is claimed to be the fact); the place and date of the
sale, a sufficient identification of the property sold, and
such other information as the Department may reasonably
require.
Such transaction reporting return shall be filed not later

SB3019 Enrolled - 1117 - LRB104 20255 HLH 33706 b
than 20 days after the date of delivery of the item that is
being sold, but may be filed by the retailer at any time sooner
than that if he chooses to do so. The transaction reporting
return and tax remittance or proof of exemption from the tax
that is imposed by this Act may be transmitted to the
Department by way of the State agency with which, or State
officer with whom, the tangible personal property must be
titled or registered (if titling or registration is required)
if the Department and such agency or State officer determine
that this procedure will expedite the processing of
applications for title or registration.
With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the
Department shall issue, in the purchaser's name, a tax receipt
(or a certificate of exemption if the Department is satisfied
that the particular sale is tax exempt) which such purchaser
may submit to the agency with which, or State officer with
whom, he must title or register the tangible personal property
that is involved (if titling or registration is required) in
support of such purchaser's application for an Illinois
certificate or other evidence of title or registration to such
tangible personal property.
No retailer's failure or refusal to remit tax under this
Act precludes a user, who has paid the proper tax to the

SB3019 Enrolled - 1118 - LRB104 20255 HLH 33706 b
retailer, from obtaining his certificate of title or other
evidence of title or registration (if titling or registration
is required) upon satisfying the Department that such user has
paid the proper tax (if tax is due) to the retailer. The
Department shall adopt appropriate rules to carry out the
mandate of this paragraph.
If the user who would otherwise pay tax to the retailer
wants the transaction reporting return filed and the payment
of tax or proof of exemption made to the Department before the
retailer is willing to take these actions and such user has not
paid the tax to the retailer, such user may certify to the fact
of such delay by the retailer, and may (upon the Department
being satisfied of the truth of such certification) transmit
the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to
the Department and obtain his tax receipt or exemption
determination, in which event the transaction reporting return
and tax remittance (if a tax payment was required) shall be
credited by the Department to the proper retailer's account
with the Department, but without the vendor's discount
provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the
same amount and in the same form in which it would be remitted
if the tax had been remitted to the Department by the retailer.
On and after January 1, 2025, with respect to the lease of
trailers, other than semitrailers as defined in Section 1-187

SB3019 Enrolled - 1119 - LRB104 20255 HLH 33706 b
of the Illinois Vehicle Code, that are required to be
registered with an agency of this State and that are subject to
the tax on lease receipts under this Act, notwithstanding any
other provision of this Act to the contrary, for the purpose of
reporting and paying tax under this Act on those lease
receipts, lessors shall file returns in addition to and
separate from the transaction reporting return. Lessors shall
file those lease returns and make payment to the Department by
electronic means on or before the 20th day of each month
following the month, quarter, or year, as applicable, in which
lease receipts were received. All lease receipts received by
the lessor from the lease of those trailers during the same
reporting period shall be reported and tax shall be paid on a
single return form to be prescribed by the Department.
Where a retailer collects the tax with respect to the
selling price of tangible personal property which he sells and
the purchaser thereafter returns such tangible personal
property and the retailer refunds the selling price thereof to
the purchaser, such retailer shall also refund, to the
purchaser, the tax so collected from the purchaser. When
filing his return for the period in which he refunds such tax
to the purchaser, the retailer may deduct the amount of the tax
so refunded by him to the purchaser from any other use tax
which such retailer may be required to pay or remit to the
Department, as shown by such return, if the amount of the tax
to be deducted was previously remitted to the Department by

SB3019 Enrolled - 1120 - LRB104 20255 HLH 33706 b
such retailer. If the retailer has not previously remitted the
amount of such tax to the Department, he is entitled to no
deduction under this Act upon refunding such tax to the
purchaser.
Any retailer filing a return under this Section shall also
include (for the purpose of paying tax thereon) the total tax
covered by such return upon the selling price of tangible
personal property purchased by him at retail from a retailer,
but as to which the tax imposed by this Act was not collected
from the retailer filing such return, and such retailer shall
remit the amount of such tax to the Department when filing such
return.
If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable retailers, who are required to file
returns hereunder and also under the Retailers' Occupation Tax
Act, to furnish all the return information required by both
Acts on the one form.
Where the retailer has more than one business registered
with the Department under separate registration under this
Act, such retailer may not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund, a special
fund in the State treasury which is hereby created, the net

SB3019 Enrolled - 1121 - LRB104 20255 HLH 33706 b
revenue realized for the preceding month from the 1% tax
imposed under this Act.
Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund 4% of the
net revenue realized for the preceding month from the 6.25%
general rate on the selling price of tangible personal
property which is purchased outside Illinois at retail from a
retailer and which is titled or registered by an agency of this
State's government.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund, a special
fund in the State treasury, 20% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property, other than (i) tangible
personal property which is purchased outside Illinois at
retail from a retailer and which is titled or registered by an
agency of this State's government and (ii) aviation fuel sold
on or after December 1, 2019. This exception for aviation fuel
only applies for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be
required for refunds of the 20% portion of the tax on aviation

SB3019 Enrolled - 1122 - LRB104 20255 HLH 33706 b
fuel under this Act, which amount shall be deposited into the
Aviation Fuel Sales Tax Refund Fund. The Department shall only
pay moneys into the State Aviation Program Fund and the
Aviation Fuels Sales Tax Refund Fund under this Act for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 100% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol. If, in any
month, the tax on sales tax holiday items, as defined in
Section 3-6, is imposed at the rate of 1.25%, then the
Department shall pay 100% of the net revenue realized for that
month from the 1.25% rate on the selling price of sales tax
holiday items into the State and Local Sales Tax Reform Fund.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the net revenue
realized for the preceding month from the 6.25% general rate
on the selling price of tangible personal property which is
purchased outside Illinois at retail from a retailer and which
is titled or registered by an agency of this State's
government.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of

SB3019 Enrolled - 1123 - LRB104 20255 HLH 33706 b
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2011, each month the Department shall
pay into the Clean Air Act Permit Fund 80% of the net revenue
realized for the preceding month from the 6.25% general rate
on the selling price of sorbents used in Illinois in the
process of sorbent injection as used to comply with the
Environmental Protection Act or the federal Clean Air Act, but
the total payment into the Clean Air Act Permit Fund under this
Act and the Retailers' Occupation Tax Act shall not exceed
$2,000,000 in any fiscal year.
Beginning July 1, 2013, each month the Department shall
pay into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Service Use Tax Act, the Service
Occupation Tax Act, and the Retailers' Occupation Tax Act an
amount equal to the average monthly deficit in the Underground
Storage Tank Fund during the prior year, as certified annually
by the Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Service Use Tax Act, the Service Occupation Tax Act, and
the Retailers' Occupation Tax Act shall not exceed $18,000,000
in any State fiscal year. As used in this paragraph, the
"average monthly deficit" shall be equal to the difference
between the average monthly claims for payment by the fund and
the average monthly revenues deposited into the fund,

SB3019 Enrolled - 1124 - LRB104 20255 HLH 33706 b
excluding payments made pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under this Act, the Service Use Tax
Act, the Service Occupation Tax Act, and the Retailers'
Occupation Tax Act, each month the Department shall deposit
$500,000 into the State Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last

SB3019 Enrolled - 1125 - LRB104 20255 HLH 33706 b
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Bond Account
in the Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture
securing Bonds issued and outstanding pursuant to the Build
Illinois Bond Act is sufficient, taking into account any
future investment income, to fully provide, in accordance with
such indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on

SB3019 Enrolled - 1126 - LRB104 20255 HLH 33706 b
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited into in the Build Illinois
Bond Account in the Build Illinois Fund in such month shall be
less than the amount required to be transferred in such month
from the Build Illinois Bond Account to the Build Illinois
Bond Retirement and Interest Fund pursuant to Section 13 of
the Build Illinois Bond Act, an amount equal to such
deficiency shall be immediately paid from other moneys
received by the Department pursuant to the Tax Acts to the
Build Illinois Fund; provided, however, that any amounts paid
to the Build Illinois Fund in any fiscal year pursuant to this
sentence shall be deemed to constitute payments pursuant to
clause (b) of the preceding sentence and shall reduce the
amount otherwise payable for such fiscal year pursuant to
clause (b) of the preceding sentence. The moneys received by
the Department pursuant to this Act and required to be
deposited into the Build Illinois Fund are subject to the
pledge, claim and charge set forth in Section 12 of the Build
Illinois Bond Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not

SB3019 Enrolled - 1127 - LRB104 20255 HLH 33706 b
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000

SB3019 Enrolled - 1128 - LRB104 20255 HLH 33706 b
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 300,000,000
2022 300,000,000
2023 300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034 375,000,000
2035 375,000,000
2036 450,000,000
and

SB3019 Enrolled - 1129 - LRB104 20255 HLH 33706 b
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, for aviation fuel sold on or after December 1, 2019,
the Department shall each month deposit into the Aviation Fuel

SB3019 Enrolled - 1130 - LRB104 20255 HLH 33706 b
Sales Tax Refund Fund an amount estimated by the Department to
be required for refunds of the 80% portion of the tax on
aviation fuel under this Act. The Department shall only
deposit moneys into the Aviation Fuel Sales Tax Refund Fund
under this paragraph for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois
Tax Increment Fund 0.27% of 80% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, and the Energy Infrastructure Fund
pursuant to the preceding paragraphs or in any amendments to
this Section hereafter enacted, beginning on the first day of
the first calendar month to occur on or after August 26, 2014
(the effective date of Public Act 98-1098), each month, from
the collections made under Section 9 of the Use Tax Act,
Section 9 of the Service Use Tax Act, Section 9 of the Service
Occupation Tax Act, and Section 3 of the Retailers' Occupation
Tax Act, the Department shall pay into the Tax Compliance and

SB3019 Enrolled - 1131 - LRB104 20255 HLH 33706 b
Administration Fund, to be used, subject to appropriation, to
fund additional auditors and compliance personnel at the
Department of Revenue, an amount equal to 1/12 of 5% of 80% of
the cash receipts collected during the preceding fiscal year
by the Audit Bureau of the Department under the Use Tax Act,
the Service Use Tax Act, the Service Occupation Tax Act, the
Retailers' Occupation Tax Act, and associated local occupation
and use taxes administered by the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, and the Tax Compliance and Administration
Fund as provided in this Section, beginning on July 1, 2018 the
Department shall pay each month into the Downstate Public
Transportation Fund the moneys required to be so paid under
Section 2-3 of the Downstate Public Transportation Act.
Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private

SB3019 Enrolled - 1132 - LRB104 20255 HLH 33706 b
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim, and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year............................Total Deposit
2024....................................$200,000,000
2025....................................$206,000,000
2026....................................$212,200,000
2027....................................$218,500,000
2028....................................$225,100,000
2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000
2034....................................$341,200,000
2035....................................$351,400,000
2036....................................$361,900,000
2037....................................$372,800,000
2038....................................$384,000,000

SB3019 Enrolled - 1133 - LRB104 20255 HLH 33706 b
2039....................................$395,500,000
2040....................................$407,400,000
2041....................................$419,600,000
2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the State and Local Sales Tax
Reform Fund, the Build Illinois Fund, the McCormick Place
Expansion Project Fund, the Illinois Tax Increment Fund, and
the Tax Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 16% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2022 and until July 1, 2023, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 32% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2023 and until July 1, 2024, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this

SB3019 Enrolled - 1134 - LRB104 20255 HLH 33706 b
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 48% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2024 and until July 1, 2026, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 64% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning on July 1, 2026, subject to the payment of amounts
into the State and Local Sales Tax Reform Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 80% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. As used in this
paragraph, "motor fuel" has the meaning given to that term in
Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the
meaning given to that term in Section 3-40 of this Act.
Until July 1, 2025, of the remainder of the moneys
received by the Department pursuant to this Act, 75% thereof
shall be paid into the State treasury and 25% shall be reserved
in a special account and used only for the transfer to the

SB3019 Enrolled - 1135 - LRB104 20255 HLH 33706 b
Common School Fund as part of the monthly transfer from the
General Revenue Fund in accordance with Section 8a of the
State Finance Act. Beginning July 1, 2025, of the remainder of
the moneys received by the Department pursuant to this Act,
75% shall be deposited into the General Revenue Fund and 25%
shall be deposited into the Common School Fund.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to
such sales, if the retailers who are affected do not make
written objection to the Department to this arrangement.
(Source: P.A. 103-154, eff. 6-30-23; 103-363, eff. 7-28-23;
103-592, Article 75, Section 75-5, eff. 1-1-25; 103-592,

SB3019 Enrolled - 1136 - LRB104 20255 HLH 33706 b
Article 110, Section 110-5, eff. 6-7-24; 103-1055, eff.
12-20-24; 104-6, Article 5, Section 5-10, eff. 6-16-25; 104-6,
Article 35, Section 35-20, eff. 6-16-25; revised 1-12-26.)
(Text of Section after amendment by P.A. 104-457)
Sec. 9. Except as to motor vehicles, watercraft, aircraft,
and trailers that are required to be registered with an agency
of this State, each retailer required or authorized to collect
the tax imposed by this Act shall pay to the Department the
amount of such tax (except as otherwise provided) at the time
when he is required to file his return for the period during
which such tax was collected, less a discount of 2.1% prior to
January 1, 1990, and 1.75% on and after January 1, 1990, or $5
per calendar year, whichever is greater, which is allowed to
reimburse the retailer for expenses incurred in collecting the
tax, keeping records, preparing and filing returns, remitting
the tax and supplying data to the Department on request.
Beginning with returns due on or after January 1, 2025, the
discount allowed in this Section, the Retailers' Occupation
Tax Act, the Service Occupation Tax Act, and the Service Use
Tax Act, including any local tax administered by the
Department and reported on the same return, shall not exceed
$1,000 per month in the aggregate for returns other than
transaction returns filed during the month. When determining
the discount allowed under this Section, retailers shall
include the amount of tax that would have been due at the 6.25%

SB3019 Enrolled - 1137 - LRB104 20255 HLH 33706 b
rate but for the 1.25% rate imposed on sales tax holiday items
under Public Act 102-700 and under this amendatory Act of the
104th General Assembly. The discount under this Section is not
allowed for the 1.25% portion of taxes paid on aviation fuel
that is subject to the revenue use requirements of 49 U.S.C.
47107(b) and 49 U.S.C. 47133. When determining the discount
allowed under this Section, retailers shall include the amount
of tax that would have been due at the 1% rate but for the 0%
rate imposed under Public Act 102-700. In the case of
retailers who report and pay the tax on a transaction by
transaction basis, as provided in this Section, such discount
shall be taken with each such tax remittance instead of when
such retailer files his periodic return, but, beginning with
returns due on or after January 1, 2025, the discount allowed
under this Section and the Retailers' Occupation Tax Act,
including any local tax administered by the Department and
reported on the same transaction return, shall not exceed
$1,000 per month for all transaction returns filed during the
month. The discount allowed under this Section is allowed only
for returns that are filed in the manner required by this Act.
The Department may disallow the discount for retailers whose
certificate of registration is revoked at the time the return
is filed, but only if the Department's decision to revoke the
certificate of registration has become final. A retailer need
not remit that part of any tax collected by him to the extent
that he is required to remit and does remit the tax imposed by

SB3019 Enrolled - 1138 - LRB104 20255 HLH 33706 b
the Retailers' Occupation Tax Act, with respect to the sale of
the same property.
Where such tangible personal property is sold under a
conditional sales contract, or under any other form of sale
wherein the payment of the principal sum, or a part thereof, is
extended beyond the close of the period for which the return is
filed, the retailer, in collecting the tax (except as to motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State), may collect for
each tax return period only the tax applicable to that part of
the selling price actually received during such tax return
period.
In the case of leases, except as otherwise provided in
this Act, the lessor, in collecting the tax, may collect for
each tax return period only the tax applicable to that part of
the selling price actually received during such tax return
period.
Except as provided in this Section, on or before the
twentieth day of each calendar month, such retailer shall file
a return for the preceding calendar month. Such return shall
be filed on forms prescribed by the Department and shall
furnish such information as the Department may reasonably
require. The return shall include the gross receipts on food
for human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, food
consisting of or infused with adult use cannabis, soft drinks,

SB3019 Enrolled - 1139 - LRB104 20255 HLH 33706 b
and food that has been prepared for immediate consumption)
which were received during the preceding calendar month,
quarter, or year, as appropriate, and upon which tax would
have been due but for the 0% rate imposed under Public Act
102-700. The return shall also include the amount of tax that
would have been due on food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption) but for the 0% rate imposed under
Public Act 102-700.
On and after January 1, 2018, except for returns required
to be filed prior to January 1, 2023 for motor vehicles,
watercraft, aircraft, and trailers that are required to be
registered with an agency of this State, with respect to
retailers whose annual gross receipts average $20,000 or more,
all returns required to be filed pursuant to this Act shall be
filed electronically. On and after January 1, 2023, with
respect to retailers whose annual gross receipts average
$20,000 or more, all returns required to be filed pursuant to
this Act, including, but not limited to, returns for motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State, shall be filed
electronically. Retailers who demonstrate that they do not
have access to the Internet or demonstrate hardship in filing
electronically may petition the Department to waive the

SB3019 Enrolled - 1140 - LRB104 20255 HLH 33706 b
electronic filing requirement.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first 2 months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in the business of selling tangible
personal property at retail in this State;
3. The total amount of taxable receipts received by
him during the preceding calendar month from sales of
tangible personal property by him during such preceding
calendar month, including receipts from charge and time
sales, but less all deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the Department
may require.
Each retailer required or authorized to collect the tax
imposed by this Act on aviation fuel sold at retail in this
State during the preceding calendar month shall, instead of

SB3019 Enrolled - 1141 - LRB104 20255 HLH 33706 b
reporting and paying tax on aviation fuel as otherwise
required by this Section, report and pay such tax on a separate
aviation fuel tax return. The requirements related to the
return shall be as otherwise provided in this Section.
Notwithstanding any other provisions of this Act to the
contrary, retailers collecting tax on aviation fuel shall file
all aviation fuel tax returns and shall make all aviation fuel
tax payments by electronic means in the manner and form
required by the Department. For purposes of this Section,
"aviation fuel" means jet fuel and aviation gasoline.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Notwithstanding any other provision of this Act to the
contrary, retailers subject to tax on cannabis shall file all
cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall
make all payments required by rules of the Department by
electronic funds transfer. Beginning October 1, 1995, a

SB3019 Enrolled - 1142 - LRB104 20255 HLH 33706 b
taxpayer who has an average monthly tax liability of $50,000
or more shall make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1,
2000, a taxpayer who has an annual tax liability of $200,000 or
more shall make all payments required by rules of the
Department by electronic funds transfer. The term "annual tax
liability" shall be the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year. The term "average monthly
tax liability" means the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year divided by 12. Beginning
on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the
Department of Revenue Law shall make all payments required by
rules of the Department by electronic funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make
payments by electronic funds transfer. All taxpayers required
to make payments by electronic funds transfer shall make those
payments for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.

SB3019 Enrolled - 1143 - LRB104 20255 HLH 33706 b
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those
payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
Before October 1, 2000, if the taxpayer's average monthly
tax liability to the Department under this Act, the Retailers'
Occupation Tax Act, the Service Occupation Tax Act, the
Service Use Tax Act was $10,000 or more during the preceding 4
complete calendar quarters, he shall file a return with the
Department each month by the 20th day of the month next
following the month during which such tax liability is
incurred and shall make payments to the Department on or
before the 7th, 15th, 22nd and last day of the month during
which such liability is incurred. On and after October 1,
2000, if the taxpayer's average monthly tax liability to the
Department under this Act, the Retailers' Occupation Tax Act,
the Service Occupation Tax Act, and the Service Use Tax Act was
$20,000 or more during the preceding 4 complete calendar
quarters, he shall file a return with the Department each
month by the 20th day of the month next following the month
during which such tax liability is incurred and shall make
payment to the Department on or before the 7th, 15th, 22nd and
last day of the month during which such liability is incurred.

SB3019 Enrolled - 1144 - LRB104 20255 HLH 33706 b
If the month during which such tax liability is incurred began
prior to January 1, 1985, each payment shall be in an amount
equal to 1/4 of the taxpayer's actual liability for the month
or an amount set by the Department not to exceed 1/4 of the
average monthly liability of the taxpayer to the Department
for the preceding 4 complete calendar quarters (excluding the
month of highest liability and the month of lowest liability
in such 4 quarter period). If the month during which such tax
liability is incurred begins on or after January 1, 1985, and
prior to January 1, 1987, each payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the
month or 27.5% of the taxpayer's liability for the same
calendar month of the preceding year. If the month during
which such tax liability is incurred begins on or after
January 1, 1987, and prior to January 1, 1988, each payment
shall be in an amount equal to 22.5% of the taxpayer's actual
liability for the month or 26.25% of the taxpayer's liability
for the same calendar month of the preceding year. If the month
during which such tax liability is incurred begins on or after
January 1, 1988, and prior to January 1, 1989, or begins on or
after January 1, 1996, each payment shall be in an amount equal
to 22.5% of the taxpayer's actual liability for the month or
25% of the taxpayer's liability for the same calendar month of
the preceding year. If the month during which such tax
liability is incurred begins on or after January 1, 1989, and
prior to January 1, 1996, each payment shall be in an amount

SB3019 Enrolled - 1145 - LRB104 20255 HLH 33706 b
equal to 22.5% of the taxpayer's actual liability for the
month or 25% of the taxpayer's liability for the same calendar
month of the preceding year or 100% of the taxpayer's actual
liability for the quarter monthly reporting period. The amount
of such quarter monthly payments shall be credited against the
final tax liability of the taxpayer's return for that month.
Before October 1, 2000, once applicable, the requirement of
the making of quarter monthly payments to the Department shall
continue until such taxpayer's average monthly liability to
the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the
month of lowest liability) is less than $9,000, or until such
taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $10,000. However, if a
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $10,000
threshold stated above, then such taxpayer may petition the
Department for change in such taxpayer's reporting status. On
and after October 1, 2000, once applicable, the requirement of
the making of quarter monthly payments to the Department shall
continue until such taxpayer's average monthly liability to
the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the

SB3019 Enrolled - 1146 - LRB104 20255 HLH 33706 b
month of lowest liability) is less than $19,000 or until such
taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $20,000. However, if a
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $20,000
threshold stated above, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status.
The Department shall change such taxpayer's reporting status
unless it finds that such change is seasonal in nature and not
likely to be long term. Quarter monthly payment status shall
be determined under this paragraph as if the rate reduction to
1.25% in Public Act 102-700 and in this amendatory Act of the
104th General Assembly on sales tax holiday items had not
occurred. For quarter monthly payments due on or after July 1,
2023 and through June 30, 2024, and on or after July 1, 2027
through June 30, 2028, "25% of the taxpayer's liability for
the same calendar month of the preceding year" shall be
determined as if the rate reduction to 1.25% in Public Act
102-700 and in this amendatory Act of 104th General Assembly
on sales tax holiday items had not occurred. Quarter monthly
payment status shall be determined under this paragraph as if
the rate reduction to 0% in Public Act 102-700 on food for
human consumption that is to be consumed off the premises

SB3019 Enrolled - 1147 - LRB104 20255 HLH 33706 b
where it is sold (other than alcoholic beverages, food
consisting of or infused with adult use cannabis, soft drinks,
and food that has been prepared for immediate consumption) had
not occurred. For quarter monthly payments due under this
paragraph on or after July 1, 2023 and through June 30, 2024,
"25% of the taxpayer's liability for the same calendar month
of the preceding year" shall be determined as if the rate
reduction to 0% in Public Act 102-700 had not occurred. If any
such quarter monthly payment is not paid at the time or in the
amount required by this Section, then the taxpayer shall be
liable for penalties and interest on the difference between
the minimum amount due and the amount of such quarter monthly
payment actually and timely paid, except insofar as the
taxpayer has previously made payments for that month to the
Department in excess of the minimum payments previously due as
provided in this Section. The Department shall make reasonable
rules and regulations to govern the quarter monthly payment
amount and quarter monthly payment dates for taxpayers who
file on other than a calendar monthly basis.
If any such payment provided for in this Section exceeds
the taxpayer's liabilities under this Act, the Retailers'
Occupation Tax Act, the Service Occupation Tax Act and the
Service Use Tax Act, as shown by an original monthly return,
the Department shall issue to the taxpayer a credit memorandum
no later than 30 days after the date of payment, which
memorandum may be submitted by the taxpayer to the Department

SB3019 Enrolled - 1148 - LRB104 20255 HLH 33706 b
in payment of tax liability subsequently to be remitted by the
taxpayer to the Department or be assigned by the taxpayer to a
similar taxpayer under this Act, the Retailers' Occupation Tax
Act, the Service Occupation Tax Act or the Service Use Tax Act,
in accordance with reasonable rules and regulations to be
prescribed by the Department, except that if such excess
payment is shown on an original monthly return and is made
after December 31, 1986, no credit memorandum shall be issued,
unless requested by the taxpayer. If no such request is made,
the taxpayer may credit such excess payment against tax
liability subsequently to be remitted by the taxpayer to the
Department under this Act, the Retailers' Occupation Tax Act,
the Service Occupation Tax Act or the Service Use Tax Act, in
accordance with reasonable rules and regulations prescribed by
the Department. If the Department subsequently determines that
all or any part of the credit taken was not actually due to the
taxpayer, the taxpayer's vendor's discount shall be reduced,
if necessary, to reflect the difference between the credit
taken and that actually due, and the taxpayer shall be liable
for penalties and interest on such difference.
If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February, and March of a given
year being due by April 20 of such year; with the return for

SB3019 Enrolled - 1149 - LRB104 20255 HLH 33706 b
April, May and June of a given year being due by July 20 of
such year; with the return for July, August and September of a
given year being due by October 20 of such year, and with the
return for October, November and December of a given year
being due by January 20 of the following year.
If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
liability to the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January 20
of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act concerning
the time within which a retailer may file his return, in the
case of any retailer who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such retailer shall file a final return under this Act with the
Department not more than one month after discontinuing such
business.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, except as otherwise provided in this
Section, every retailer selling this kind of tangible personal
property shall file, with the Department, upon a form to be

SB3019 Enrolled - 1150 - LRB104 20255 HLH 33706 b
prescribed and supplied by the Department, a separate return
for each such item of tangible personal property which the
retailer sells, except that if, in the same transaction, (i) a
retailer of aircraft, watercraft, motor vehicles or trailers
transfers more than one aircraft, watercraft, motor vehicle or
trailer to another aircraft, watercraft, motor vehicle or
trailer retailer for the purpose of resale or (ii) a retailer
of aircraft, watercraft, motor vehicles, or trailers transfers
more than one aircraft, watercraft, motor vehicle, or trailer
to a purchaser for use as a qualifying rolling stock as
provided in Section 3-55 of this Act, then that seller may
report the transfer of all the aircraft, watercraft, motor
vehicles or trailers involved in that transaction to the
Department on the same uniform invoice-transaction reporting
return form. For purposes of this Section, "watercraft" means
a Class 2, Class 3, or Class 4 watercraft as defined in Section
3-2 of the Boat Registration and Safety Act, a personal
watercraft, or any boat equipped with an inboard motor.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, every person who is engaged in the
business of leasing or renting such items and who, in
connection with such business, sells any such item to a
retailer for the purpose of resale is, notwithstanding any
other provision of this Section to the contrary, authorized to
meet the return-filing requirement of this Act by reporting

SB3019 Enrolled - 1151 - LRB104 20255 HLH 33706 b
the transfer of all the aircraft, watercraft, motor vehicles,
or trailers transferred for resale during a month to the
Department on the same uniform invoice-transaction reporting
return form on or before the 20th of the month following the
month in which the transfer takes place. Notwithstanding any
other provision of this Act to the contrary, all returns filed
under this paragraph must be filed by electronic means in the
manner and form as required by the Department.
The transaction reporting return in the case of motor
vehicles or trailers that are required to be registered with
an agency of this State, shall be the same document as the
Uniform Invoice referred to in Section 5-402 of the Illinois
Vehicle Code and must show the name and address of the seller;
the name and address of the purchaser; the amount of the
selling price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 2 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling
price; the amount of tax due from the retailer with respect to
such transaction; the amount of tax collected from the
purchaser by the retailer on such transaction (or satisfactory
evidence that such tax is not due in that particular instance,
if that is claimed to be the fact); the place and date of the
sale; a sufficient identification of the property sold; such

SB3019 Enrolled - 1152 - LRB104 20255 HLH 33706 b
other information as is required in Section 5-402 of the
Illinois Vehicle Code, and such other information as the
Department may reasonably require.
The transaction reporting return in the case of watercraft
and aircraft must show the name and address of the seller; the
name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 2 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling
price; the amount of tax due from the retailer with respect to
such transaction; the amount of tax collected from the
purchaser by the retailer on such transaction (or satisfactory
evidence that such tax is not due in that particular instance,
if that is claimed to be the fact); the place and date of the
sale, a sufficient identification of the property sold, and
such other information as the Department may reasonably
require.
Such transaction reporting return shall be filed not later
than 20 days after the date of delivery of the item that is
being sold, but may be filed by the retailer at any time sooner
than that if he chooses to do so. The transaction reporting
return and tax remittance or proof of exemption from the tax
that is imposed by this Act may be transmitted to the

SB3019 Enrolled - 1153 - LRB104 20255 HLH 33706 b
Department by way of the State agency with which, or State
officer with whom, the tangible personal property must be
titled or registered (if titling or registration is required)
if the Department and such agency or State officer determine
that this procedure will expedite the processing of
applications for title or registration.
With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the
Department shall issue, in the purchaser's name, a tax receipt
(or a certificate of exemption if the Department is satisfied
that the particular sale is tax exempt) which such purchaser
may submit to the agency with which, or State officer with
whom, he must title or register the tangible personal property
that is involved (if titling or registration is required) in
support of such purchaser's application for an Illinois
certificate or other evidence of title or registration to such
tangible personal property.
No retailer's failure or refusal to remit tax under this
Act precludes a user, who has paid the proper tax to the
retailer, from obtaining his certificate of title or other
evidence of title or registration (if titling or registration
is required) upon satisfying the Department that such user has
paid the proper tax (if tax is due) to the retailer. The
Department shall adopt appropriate rules to carry out the

SB3019 Enrolled - 1154 - LRB104 20255 HLH 33706 b
mandate of this paragraph.
If the user who would otherwise pay tax to the retailer
wants the transaction reporting return filed and the payment
of tax or proof of exemption made to the Department before the
retailer is willing to take these actions and such user has not
paid the tax to the retailer, such user may certify to the fact
of such delay by the retailer, and may (upon the Department
being satisfied of the truth of such certification) transmit
the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to
the Department and obtain his tax receipt or exemption
determination, in which event the transaction reporting return
and tax remittance (if a tax payment was required) shall be
credited by the Department to the proper retailer's account
with the Department, but without the vendor's discount
provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the
same amount and in the same form in which it would be remitted
if the tax had been remitted to the Department by the retailer.
On and after January 1, 2025, with respect to the lease of
trailers, other than semitrailers as defined in Section 1-187
of the Illinois Vehicle Code, that are required to be
registered with an agency of this State and that are subject to
the tax on lease receipts under this Act, notwithstanding any
other provision of this Act to the contrary, for the purpose of
reporting and paying tax under this Act on those lease

SB3019 Enrolled - 1155 - LRB104 20255 HLH 33706 b
receipts, lessors shall file returns in addition to and
separate from the transaction reporting return. Lessors shall
file those lease returns and make payment to the Department by
electronic means on or before the 20th day of each month
following the month, quarter, or year, as applicable, in which
lease receipts were received. All lease receipts received by
the lessor from the lease of those trailers during the same
reporting period shall be reported and tax shall be paid on a
single return form to be prescribed by the Department.
Where a retailer collects the tax with respect to the
selling price of tangible personal property which he sells and
the purchaser thereafter returns such tangible personal
property and the retailer refunds the selling price thereof to
the purchaser, such retailer shall also refund, to the
purchaser, the tax so collected from the purchaser. When
filing his return for the period in which he refunds such tax
to the purchaser, the retailer may deduct the amount of the tax
so refunded by him to the purchaser from any other use tax
which such retailer may be required to pay or remit to the
Department, as shown by such return, if the amount of the tax
to be deducted was previously remitted to the Department by
such retailer. If the retailer has not previously remitted the
amount of such tax to the Department, he is entitled to no
deduction under this Act upon refunding such tax to the
purchaser.
Any retailer filing a return under this Section shall also

SB3019 Enrolled - 1156 - LRB104 20255 HLH 33706 b
include (for the purpose of paying tax thereon) the total tax
covered by such return upon the selling price of tangible
personal property purchased by him at retail from a retailer,
but as to which the tax imposed by this Act was not collected
from the retailer filing such return, and such retailer shall
remit the amount of such tax to the Department when filing such
return.
If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable retailers, who are required to file
returns hereunder and also under the Retailers' Occupation Tax
Act, to furnish all the return information required by both
Acts on the one form.
Where the retailer has more than one business registered
with the Department under separate registration under this
Act, such retailer may not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund, a special
fund in the State treasury which is hereby created, the net
revenue realized for the preceding month from the 1% tax
imposed under this Act.
Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund 4% of the
net revenue realized for the preceding month from the 6.25%

SB3019 Enrolled - 1157 - LRB104 20255 HLH 33706 b
general rate on the selling price of tangible personal
property which is purchased outside Illinois at retail from a
retailer and which is titled or registered by an agency of this
State's government.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund, a special
fund in the State treasury, 20% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property, other than (i) tangible
personal property which is purchased outside Illinois at
retail from a retailer and which is titled or registered by an
agency of this State's government and (ii) aviation fuel sold
on or after December 1, 2019. This exception for aviation fuel
only applies for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be
required for refunds of the 20% portion of the tax on aviation
fuel under this Act, which amount shall be deposited into the
Aviation Fuel Sales Tax Refund Fund. The Department shall only
pay moneys into the State Aviation Program Fund and the
Aviation Fuels Sales Tax Refund Fund under this Act for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49

SB3019 Enrolled - 1158 - LRB104 20255 HLH 33706 b
U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 100% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol. If, in any
month, the tax on sales tax holiday items, as defined in
Section 3-6, is imposed at the rate of 1.25%, then the
Department shall pay 100% of the net revenue realized for that
month from the 1.25% rate on the selling price of sales tax
holiday items into the State and Local Sales Tax Reform Fund.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the net revenue
realized for the preceding month from the 6.25% general rate
on the selling price of tangible personal property which is
purchased outside Illinois at retail from a retailer and which
is titled or registered by an agency of this State's
government.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2011, each month the Department shall
pay into the Clean Air Act Permit Fund 80% of the net revenue

SB3019 Enrolled - 1159 - LRB104 20255 HLH 33706 b
realized for the preceding month from the 6.25% general rate
on the selling price of sorbents used in Illinois in the
process of sorbent injection as used to comply with the
Environmental Protection Act or the federal Clean Air Act, but
the total payment into the Clean Air Act Permit Fund under this
Act and the Retailers' Occupation Tax Act shall not exceed
$2,000,000 in any fiscal year.
Beginning July 1, 2013, each month the Department shall
pay into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Service Use Tax Act, the Service
Occupation Tax Act, and the Retailers' Occupation Tax Act an
amount equal to the average monthly deficit in the Underground
Storage Tank Fund during the prior year, as certified annually
by the Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Service Use Tax Act, the Service Occupation Tax Act, and
the Retailers' Occupation Tax Act shall not exceed $18,000,000
in any State fiscal year. As used in this paragraph, the
"average monthly deficit" shall be equal to the difference
between the average monthly claims for payment by the fund and
the average monthly revenues deposited into the fund,
excluding payments made pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under this Act, the Service Use Tax
Act, the Service Occupation Tax Act, and the Retailers'
Occupation Tax Act, each month the Department shall deposit

SB3019 Enrolled - 1160 - LRB104 20255 HLH 33706 b
$500,000 into the State Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Bond Account
in the Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less

SB3019 Enrolled - 1161 - LRB104 20255 HLH 33706 b
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture
securing Bonds issued and outstanding pursuant to the Build
Illinois Bond Act is sufficient, taking into account any
future investment income, to fully provide, in accordance with
such indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited into the Build Illinois Bond
Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from

SB3019 Enrolled - 1162 - LRB104 20255 HLH 33706 b
the Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois
Fund; provided, however, that any amounts paid to the Build
Illinois Fund in any fiscal year pursuant to this sentence
shall be deemed to constitute payments pursuant to clause (b)
of the preceding sentence and shall reduce the amount
otherwise payable for such fiscal year pursuant to clause (b)
of the preceding sentence. The moneys received by the
Department pursuant to this Act and required to be deposited
into the Build Illinois Fund are subject to the pledge, claim
and charge set forth in Section 12 of the Build Illinois Bond
Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place

SB3019 Enrolled - 1163 - LRB104 20255 HLH 33706 b
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000

SB3019 Enrolled - 1164 - LRB104 20255 HLH 33706 b
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 300,000,000
2022 300,000,000
2023 300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034 375,000,000
2035 375,000,000
2036 450,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and

SB3019 Enrolled - 1165 - LRB104 20255 HLH 33706 b
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, for aviation fuel sold on or after December 1, 2019,
the Department shall each month deposit into the Aviation Fuel
Sales Tax Refund Fund an amount estimated by the Department to
be required for refunds of the 80% portion of the tax on
aviation fuel under this Act. The Department shall only
deposit moneys into the Aviation Fuel Sales Tax Refund Fund
under this paragraph for so long as the revenue use

SB3019 Enrolled - 1166 - LRB104 20255 HLH 33706 b
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois
Tax Increment Fund 0.27% of 80% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, and the Energy Infrastructure Fund
pursuant to the preceding paragraphs or in any amendments to
this Section hereafter enacted, beginning on the first day of
the first calendar month to occur on or after August 26, 2014
(the effective date of Public Act 98-1098), each month, from
the collections made under Section 9 of the Use Tax Act,
Section 9 of the Service Use Tax Act, Section 9 of the Service
Occupation Tax Act, and Section 3 of the Retailers' Occupation
Tax Act, the Department shall pay into the Tax Compliance and
Administration Fund, to be used, subject to appropriation, to
fund additional auditors and compliance personnel at the
Department of Revenue, an amount equal to 1/12 of 5% of 80% of
the cash receipts collected during the preceding fiscal year
by the Audit Bureau of the Department under the Use Tax Act,

SB3019 Enrolled - 1167 - LRB104 20255 HLH 33706 b
the Service Use Tax Act, the Service Occupation Tax Act, the
Retailers' Occupation Tax Act, and associated local occupation
and use taxes administered by the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, and the Tax Compliance and Administration
Fund as provided in this Section, beginning on July 1, 2018 the
Department shall pay each month into the Downstate Public
Transportation Fund the moneys required to be so paid under
Section 2-3 of the Downstate Public Transportation Act.
Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim, and
charge set forth in Section 25-55 of the Public-Private

SB3019 Enrolled - 1168 - LRB104 20255 HLH 33706 b
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year............................Total Deposit
2024....................................$200,000,000
2025....................................$206,000,000
2026....................................$212,200,000
2027....................................$218,500,000
2028....................................$225,100,000
2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000
2034....................................$341,200,000
2035....................................$351,400,000
2036....................................$361,900,000
2037....................................$372,800,000
2038....................................$384,000,000
2039....................................$395,500,000
2040....................................$407,400,000
2041....................................$419,600,000
2042....................................$432,200,000
2043....................................$445,100,000

SB3019 Enrolled - 1169 - LRB104 20255 HLH 33706 b
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the State and Local Sales Tax
Reform Fund, the Build Illinois Fund, the McCormick Place
Expansion Project Fund, the Illinois Tax Increment Fund, and
the Tax Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 16% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2022 and until July 1, 2023, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 32% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2023 and until July 1, 2024, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 48% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2024 and until July 1, 2026, subject to the
payment of amounts into the State and Local Sales Tax Reform

SB3019 Enrolled - 1170 - LRB104 20255 HLH 33706 b
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 64% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning on July 1, 2026, subject to the payment of amounts
into the State and Local Sales Tax Reform Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Public Transportation
Fund and the Downstate Public Transportation Fund the amount
estimated to represent 80% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Moneys shall be
apportioned as follows: 85% into the Public Transportation
Fund and 15% into the Downstate Public Transportation Fund. As
used in this paragraph, "motor fuel" has the meaning given to
that term in Section 1.1 of the Motor Fuel Tax Law, and
"gasohol" has the meaning given to that term in Section 3-40 of
this Act.
Until July 1, 2025, of the remainder of the moneys
received by the Department pursuant to this Act, 75% thereof
shall be paid into the State treasury and 25% shall be reserved
in a special account and used only for the transfer to the
Common School Fund as part of the monthly transfer from the

SB3019 Enrolled - 1171 - LRB104 20255 HLH 33706 b
General Revenue Fund in accordance with Section 8a of the
State Finance Act. Beginning July 1, 2025, of the remainder of
the moneys received by the Department pursuant to this Act,
75% shall be deposited into the General Revenue Fund and 25%
shall be deposited into the Common School Fund.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to
such sales, if the retailers who are affected do not make
written objection to the Department to this arrangement.
(Source: P.A. 103-154, eff. 6-30-23; 103-363, eff. 7-28-23;
103-592, Article 75, Section 75-5, eff. 1-1-25; 103-592,
Article 110, Section 110-5, eff. 6-7-24; 103-1055, eff.

SB3019 Enrolled - 1172 - LRB104 20255 HLH 33706 b
12-20-24; 104-6, Article 5, Section 5-10, eff. 6-16-25; 104-6,
Article 35, Section 35-20, eff. 6-16-25; 104-457, eff.
6-1-26.)
Section 125-10. The Retailers' Occupation Tax Act is
amended by changing Sections 2-8, 2-10, and 3 as follows:
(35 ILCS 120/2-8)
Sec. 2-8. Sales tax holiday items.
(a) Any tangible personal property described in this
subsection is a sales tax holiday item and qualifies for the
1.25% reduced rate of tax for the period set forth in Section
2-10 of this Act (hereinafter referred to as the Sales Tax
Holiday Period). The reduced rate on these items shall be
administered under the provisions of subsection (b) of this
Section. The following items are subject to the reduced rate:
(1) Clothing items that each have a retail selling
price of less than $125.
"Clothing" means, unless otherwise specified in this
Section, all human wearing apparel suitable for general
use. "Clothing" does not include clothing accessories,
protective equipment, or sport or recreational equipment.
"Clothing" includes, but is not limited to: household and
shop aprons; athletic supporters; bathing suits and caps;
belts and suspenders; boots; coats and jackets; ear muffs;
footlets; gloves and mittens for general use; hats and

SB3019 Enrolled - 1173 - LRB104 20255 HLH 33706 b
caps; hosiery; insoles for shoes; lab coats; neckties;
overshoes; pantyhose; rainwear; rubber pants; sandals;
scarves; shoes and shoelaces; slippers; sneakers; socks
and stockings; steel-toed shoes; underwear; and school
uniforms.
"Clothing accessories" means, but is not limited to:
briefcases; cosmetics; hair notions, including, but not
limited to barrettes, hair bows, and hair nets; handbags;
handkerchiefs; jewelry; non-prescription sunglasses;
umbrellas; wallets; watches; and wigs and hair pieces.
"Protective equipment" means, but is not limited to:
breathing masks; clean room apparel and equipment; ear and
hearing protectors; face shields; hard hats; helmets;
paint or dust respirators; protective gloves; safety
glasses and goggles; safety belts; tool belts; and
welder's gloves and masks.
"Sport or recreational equipment" means, but is not
limited to: ballet and tap shoes; cleated or spiked
athletic shoes; gloves, including, but not limited to,
baseball, bowling, boxing, hockey, and golf gloves;
goggles; hand and elbow guards; life preservers and vests;
mouth guards; roller and ice skates; shin guards; shoulder
pads; ski boots; waders; and wetsuits and fins.
(2) School supplies. "School supplies" means, unless
otherwise specified in this Section, items used by a
student in a course of study. The purchase of school

SB3019 Enrolled - 1174 - LRB104 20255 HLH 33706 b
supplies for use by persons other than students for use in
a course of study are not eligible for the reduced rate of
tax. "School supplies" do not include school art supplies;
school instructional materials; cameras; film and memory
cards; videocameras, tapes, and videotapes; computers;
cell phones; Personal Digital Assistants (PDAs); handheld
electronic schedulers; and school computer supplies.
"School supplies" includes, but is not limited to:
binders; book bags; calculators; cellophane tape;
blackboard chalk; compasses; composition books; crayons;
erasers; expandable, pocket, plastic, and manila folders;
glue, paste, and paste sticks; highlighters; index cards;
index card boxes; legal pads; lunch boxes; markers;
notebooks; paper, including loose leaf ruled notebook
paper, copy paper, graph paper, tracing paper, manila
paper, colored paper, poster board, and construction
paper; pencils; pencil leads; pens; ink and ink refills
for pens; pencil boxes and other school supply boxes;
pencil sharpeners; protractors; rulers; scissors; and
writing tablets.
"School art supply" means an item commonly used by a
student in a course of study for artwork and includes only
the following items: clay and glazes; acrylic, tempera,
and oil paint; paintbrushes for artwork; sketch and
drawing pads; and watercolors.
"School instructional material" means written material

SB3019 Enrolled - 1175 - LRB104 20255 HLH 33706 b
commonly used by a student in a course of study as a
reference and to learn the subject being taught and
includes only the following items: reference books;
reference maps and globes; textbooks; and workbooks.
"School computer supply" means an item commonly used
by a student in a course of study in which a computer is
used and applies only to the following items: flashdrives
and other computer data storage devices; data storage
media, such as diskettes and compact disks; boxes and
cases for disk storage; external ports or drives; computer
cases; computer cables; computer printers; and printer
cartridges, toner, and ink.
(b) Administration. Notwithstanding any other provision of
this Act, the reduced rate of tax under Section 2-10 3-10 of
this Act for clothing and school supplies shall be
administered by the Department under the provisions of this
subsection (b).
(1) Bundled sales. Items that qualify for the reduced
rate of tax that are bundled together with items that do
not qualify for the reduced rate of tax and that are sold
for one itemized price will be subject to the reduced rate
of tax only if the value of the items that qualify for the
reduced rate of tax exceeds the value of the items that do
not qualify for the reduced rate of tax.
(2) Coupons and discounts. An unreimbursed discount by
the seller reduces the sales price of the property so that

SB3019 Enrolled - 1176 - LRB104 20255 HLH 33706 b
the discounted sales price determines whether the sales
price is within a sales tax holiday price threshold. A
coupon or other reduction in the sales price is treated as
a discount if the seller is not reimbursed for the coupon
or reduction amount by a third party.
(3) Splitting of items normally sold together.
Articles that are normally sold as a single unit must
continue to be sold in that manner. Such articles cannot
be priced separately and sold as individual items in order
to obtain the reduced rate of tax. For example, a pair of
shoes cannot have each shoe sold separately so that the
sales price of each shoe is within a sales tax holiday
price threshold.
(4) Rain checks. A rain check is a procedure that
allows a customer to purchase an item at a certain price at
a later time because the particular item was out of stock.
Eligible property that customers purchase during the Sales
Tax Holiday Period with the use of a rain check will
qualify for the reduced rate of tax regardless of when the
rain check was issued. Issuance of a rain check during the
Sales Tax Holiday Period will not qualify eligible
property for the reduced rate of tax if the property is
actually purchased after the Sales Tax Holiday Period.
(5) Exchanges. The procedure for an exchange in
regards to a sales tax holiday is as follows:
(A) If a customer purchases an item of eligible

SB3019 Enrolled - 1177 - LRB104 20255 HLH 33706 b
property during the Sales Tax Holiday Period, but
later exchanges the item for a similar eligible item,
even if a different size, different color, or other
feature, no additional tax is due even if the exchange
is made after the Sales Tax Holiday Period.
(B) If a customer purchases an item of eligible
property during the Sales Tax Holiday Period, but
after the Sales Tax Holiday Period has ended, the
customer returns the item and receives credit on the
purchase of a different item, the 6.25% general
merchandise sales tax rate is due on the sale of the
newly purchased item.
(C) If a customer purchases an item of eligible
property before the Sales Tax Holiday Period, but
during the Sales Tax Holiday Period the customer
returns the item and receives credit on the purchase
of a different item of eligible property, the reduced
rate of tax is due on the sale of the new item if the
new item is purchased during the Sales Tax Holiday
Period.
(6) (Blank).
(7) Order date and back orders. For the purpose of a
sales tax holiday, eligible property qualifies for the
reduced rate of tax if: (i) the item is both delivered to
and paid for by the customer during the Sales Tax Holiday
Period or (ii) the customer orders and pays for the item

SB3019 Enrolled - 1178 - LRB104 20255 HLH 33706 b
and the seller accepts the order during the Sales Tax
Holiday Period for immediate shipment, even if delivery is
made after the Sales Tax Holiday Period. The seller
accepts an order when the seller has taken action to fill
the order for immediate shipment. Actions to fill an order
include placement of an "in date" stamp on an order or
assignment of an "order number" to an order within the
Sales Tax Holiday Period. An order is for immediate
shipment when the customer does not request delayed
shipment. An order is for immediate shipment
notwithstanding that the shipment may be delayed because
of a backlog of orders or because stock is currently
unavailable to, or on back order by, the seller.
(8) Returns. For a 60-day period immediately after the
Sales Tax Holiday Period, if a customer returns an item
that would qualify for the reduced rate of tax, credit for
or refund of sales tax shall be given only at the reduced
rate unless the customer provides a receipt or invoice
that shows tax was paid at the 6.25% general merchandise
rate, or the seller has sufficient documentation to show
that tax was paid at the 6.25% general merchandise rate on
the specific item. This 60-day period is set solely for
the purpose of designating a time period during which the
customer must provide documentation that shows that the
appropriate sales tax rate was paid on returned
merchandise. The 60-day period is not intended to change a

SB3019 Enrolled - 1179 - LRB104 20255 HLH 33706 b
seller's policy on the time period during which the seller
will accept returns.
(c) The Department may implement the provisions of this
Section through the use of emergency rules, along with
permanent rules filed concurrently with such emergency rules,
in accordance with the provisions of Section 5-45 of the
Illinois Administrative Procedure Act. For purposes of the
Illinois Administrative Procedure Act, the adoption of rules
to implement the provisions of this Section shall be deemed an
emergency and necessary for the public interest, safety, and
welfare.
(Source: P.A. 102-700, eff. 4-19-22.)
(35 ILCS 120/2-10) from Ch. 120, par. 441-10
Sec. 2-10. Rate of tax. Unless otherwise provided in this
Section, the tax imposed by this Act is at the rate of 6.25% of
gross receipts from sales, which, on and after January 1,
2025, includes leases, of tangible personal property made in
the course of business.
Beginning on July 1, 2000 and through December 31, 2000,
with respect to motor fuel, as defined in Section 1.1 of the
Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
the Use Tax Act, the tax is imposed at the rate of 1.25%.
Beginning on August 6, 2010 through August 15, 2010, and
beginning again on August 5, 2022 through August 14, 2022, and
beginning again on August 7, 2026 through August 16, 2026,

SB3019 Enrolled - 1180 - LRB104 20255 HLH 33706 b
with respect to sales tax holiday items as defined in Section
2-8 of this Act, the tax is imposed at the rate of 1.25%.
Within 14 days after July 1, 2000 (the effective date of
Public Act 91-872), each retailer of motor fuel and gasohol
shall cause the following notice to be posted in a prominently
visible place on each retail dispensing device that is used to
dispense motor fuel or gasohol in the State of Illinois: "As of
July 1, 2000, the State of Illinois has eliminated the State's
share of sales tax on motor fuel and gasohol through December
31, 2000. The price on this pump should reflect the
elimination of the tax." The notice shall be printed in bold
print on a sign that is no smaller than 4 inches by 8 inches.
The sign shall be clearly visible to customers. Any retailer
who fails to post or maintain a required sign through December
31, 2000 is guilty of a petty offense for which the fine shall
be $500 per day per each retail premises where a violation
occurs.
With respect to gasohol, as defined in the Use Tax Act, the
tax imposed by this Act applies to (i) 70% of the proceeds of
sales made on or after January 1, 1990, and before July 1,
2003, (ii) 80% of the proceeds of sales made on or after July
1, 2003 and on or before July 1, 2017, (iii) 100% of the
proceeds of sales made after July 1, 2017 and prior to January
1, 2024, (iv) 90% of the proceeds of sales made on or after
January 1, 2024 and on or before December 31, 2028, and (v)
100% of the proceeds of sales made after December 31, 2028. If,

SB3019 Enrolled - 1181 - LRB104 20255 HLH 33706 b
at any time, however, the tax under this Act on sales of
gasohol, as defined in the Use Tax Act, is imposed at the rate
of 1.25%, then the tax imposed by this Act applies to 100% of
the proceeds of sales of gasohol made during that time.
With respect to mid-range ethanol blends, as defined in
Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
applies to (i) 80% of the proceeds of sales made on or after
January 1, 2024 and on or before December 31, 2028 and (ii)
100% of the proceeds of sales made after December 31, 2028. If,
at any time, however, the tax under this Act on sales of
mid-range ethanol blends is imposed at the rate of 1.25%, then
the tax imposed by this Act applies to 100% of the proceeds of
sales of mid-range ethanol blends made during that time.
With respect to majority blended ethanol fuel, as defined
in the Use Tax Act, the tax imposed by this Act does not apply
to the proceeds of sales made on or after July 1, 2003 and on
or before December 31, 2028 but applies to 100% of the proceeds
of sales made thereafter.
With respect to biodiesel blends, as defined in the Use
Tax Act, with no less than 1% and no more than 10% biodiesel,
the tax imposed by this Act applies to (i) 80% of the proceeds
of sales made on or after July 1, 2003 and on or before
December 31, 2018 and (ii) 100% of the proceeds of sales made
after December 31, 2018 and before January 1, 2024. On and
after January 1, 2024 and on or before December 31, 2030, the
taxation of biodiesel, renewable diesel, and biodiesel blends

SB3019 Enrolled - 1182 - LRB104 20255 HLH 33706 b
shall be as provided in Section 3-5.1 of the Use Tax Act. If,
at any time, however, the tax under this Act on sales of
biodiesel blends, as defined in the Use Tax Act, with no less
than 1% and no more than 10% biodiesel is imposed at the rate
of 1.25%, then the tax imposed by this Act applies to 100% of
the proceeds of sales of biodiesel blends with no less than 1%
and no more than 10% biodiesel made during that time.
With respect to biodiesel, as defined in the Use Tax Act,
and biodiesel blends, as defined in the Use Tax Act, with more
than 10% but no more than 99% biodiesel, the tax imposed by
this Act does not apply to the proceeds of sales made on or
after July 1, 2003 and on or before December 31, 2023. On and
after January 1, 2024 and on or before December 31, 2030, the
taxation of biodiesel, renewable diesel, and biodiesel blends
shall be as provided in Section 3-5.1 of the Use Tax Act.
Until July 1, 2022 and from July 1, 2023 through December
31, 2025, with respect to food for human consumption that is to
be consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption), the tax is imposed at the rate of 1%.
Beginning July 1, 2022 and until July 1, 2023, with respect to
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
food consisting of or infused with adult use cannabis, soft
drinks, and food that has been prepared for immediate

SB3019 Enrolled - 1183 - LRB104 20255 HLH 33706 b
consumption), the tax is imposed at the rate of 0%. On and
after January 1, 2026, food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, candy, and food that has been
prepared for immediate consumption) is exempt from the tax
imposed by this Act.
With respect to prescription and nonprescription
medicines, drugs, medical appliances, products classified as
Class III medical devices by the United States Food and Drug
Administration that are used for cancer treatment pursuant to
a prescription, as well as any accessories and components
related to those devices, modifications to a motor vehicle for
the purpose of rendering it usable by a person with a
disability, and insulin, blood sugar testing materials,
syringes, and needles used by human diabetics, the tax is
imposed at the rate of 1%. For the purposes of this Section,
until September 1, 2009: the term "soft drinks" means any
complete, finished, ready-to-use, non-alcoholic drink, whether
carbonated or not, including, but not limited to, soda water,
cola, fruit juice, vegetable juice, carbonated water, and all
other preparations commonly known as soft drinks of whatever
kind or description that are contained in any closed or sealed
bottle, can, carton, or container, regardless of size; but
"soft drinks" does not include coffee, tea, non-carbonated
water, infant formula, milk or milk products as defined in the

SB3019 Enrolled - 1184 - LRB104 20255 HLH 33706 b
Grade A Pasteurized Milk and Milk Products Act, or drinks
containing 50% or more natural fruit or vegetable juice.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "soft drinks" means non-alcoholic
beverages that contain natural or artificial sweeteners. "Soft
drinks" does not include beverages that contain milk or milk
products, soy, rice or similar milk substitutes, or greater
than 50% of vegetable or fruit juice by volume.
Until August 1, 2009, and notwithstanding any other
provisions of this Act, "food for human consumption that is to
be consumed off the premises where it is sold" includes all
food sold through a vending machine, except soft drinks and
food products that are dispensed hot from a vending machine,
regardless of the location of the vending machine. Beginning
August 1, 2009, and notwithstanding any other provisions of
this Act, "food for human consumption that is to be consumed
off the premises where it is sold" includes all food sold
through a vending machine, except soft drinks, candy, and food
products that are dispensed hot from a vending machine,
regardless of the location of the vending machine.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "food for human consumption that
is to be consumed off the premises where it is sold" does not
include candy. For purposes of this Section, "candy" means a
preparation of sugar, honey, or other natural or artificial
sweeteners in combination with chocolate, fruits, nuts or

SB3019 Enrolled - 1185 - LRB104 20255 HLH 33706 b
other ingredients or flavorings in the form of bars, drops, or
pieces. "Candy" does not include any preparation that contains
flour or requires refrigeration.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "nonprescription medicines and
drugs" does not include grooming and hygiene products. For
purposes of this Section, "grooming and hygiene products"
includes, but is not limited to, soaps and cleaning solutions,
shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
lotions and screens, unless those products are available by
prescription only, regardless of whether the products meet the
definition of "over-the-counter-drugs". For the purposes of
this paragraph, "over-the-counter-drug" means a drug for human
use that contains a label that identifies the product as a drug
as required by 21 CFR 201.66. The "over-the-counter-drug"
label includes:
(A) a "Drug Facts" panel; or
(B) a statement of the "active ingredient(s)" with a
list of those ingredients contained in the compound,
substance or preparation.
Beginning on January 1, 2014 (the effective date of Public
Act 98-122), "prescription and nonprescription medicines and
drugs" includes medical cannabis purchased from a registered
dispensing organization under the Compassionate Use of Medical
Cannabis Program Act.
As used in this Section, "adult use cannabis" means

SB3019 Enrolled - 1186 - LRB104 20255 HLH 33706 b
cannabis subject to tax under the Cannabis Cultivation
Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
and does not include cannabis subject to tax under the
Compassionate Use of Medical Cannabis Program Act.
(Source: P.A. 103-9, eff. 6-7-23; 103-154, eff. 6-30-23;
103-592, eff. 1-1-25; 103-781, eff. 8-5-24; 104-417, eff.
8-15-25.)
(35 ILCS 120/3)
(Text of Section before amendment by P.A. 104-457)
Sec. 3. Except as provided in this Section, on or before
the twentieth day of each calendar month, every person engaged
in the business of selling, which, on and after January 1,
2025, includes leasing, tangible personal property at retail
in this State during the preceding calendar month shall file a
return with the Department, stating:
1. The name of the seller;
2. His residence address and the address of his
principal place of business and the address of the
principal place of business (if that is a different
address) from which he engages in the business of selling
tangible personal property at retail in this State;
3. Total amount of receipts received by him during the
preceding calendar month or quarter, as the case may be,
from sales of tangible personal property, and from
services furnished, by him during such preceding calendar

SB3019 Enrolled - 1187 - LRB104 20255 HLH 33706 b
month or quarter;
4. Total amount received by him during the preceding
calendar month or quarter on charge and time sales of
tangible personal property, and from services furnished,
by him prior to the month or quarter for which the return
is filed;
5. Deductions allowed by law;
6. Gross receipts which were received by him during
the preceding calendar month or quarter and upon the basis
of which the tax is imposed, including gross receipts on
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
food consisting of or infused with adult use cannabis,
soft drinks, and food that has been prepared for immediate
consumption) which were received during the preceding
calendar month or quarter and upon which tax would have
been due but for the 0% rate imposed under Public Act
102-700;
7. The amount of credit provided in Section 2d of this
Act;
8. The amount of tax due, including the amount of tax
that would have been due on food for human consumption
that is to be consumed off the premises where it is sold
(other than alcoholic beverages, food consisting of or
infused with adult use cannabis, soft drinks, and food
that has been prepared for immediate consumption) but for

SB3019 Enrolled - 1188 - LRB104 20255 HLH 33706 b
the 0% rate imposed under Public Act 102-700;
9. The signature of the taxpayer; and
10. Such other reasonable information as the
Department may require.
In the case of leases, except as otherwise provided in
this Act, the lessor must remit for each tax return period only
the tax applicable to that part of the selling price actually
received during such tax return period.
On and after January 1, 2018, except for returns required
to be filed prior to January 1, 2023 for motor vehicles,
watercraft, aircraft, and trailers that are required to be
registered with an agency of this State, with respect to
retailers whose annual gross receipts average $20,000 or more,
all returns required to be filed pursuant to this Act shall be
filed electronically. On and after January 1, 2023, with
respect to retailers whose annual gross receipts average
$20,000 or more, all returns required to be filed pursuant to
this Act, including, but not limited to, returns for motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State, shall be filed
electronically. Retailers who demonstrate that they do not
have access to the Internet or demonstrate hardship in filing
electronically may petition the Department to waive the
electronic filing requirement.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,

SB3019 Enrolled - 1189 - LRB104 20255 HLH 33706 b
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Each return shall be accompanied by the statement of
prepaid tax issued pursuant to Section 2e for which credit is
claimed.
Prior to October 1, 2003 and on and after September 1,
2004, a retailer may accept a Manufacturer's Purchase Credit
certification from a purchaser in satisfaction of Use Tax as
provided in Section 3-85 of the Use Tax Act if the purchaser
provides the appropriate documentation as required by Section
3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
certification, accepted by a retailer prior to October 1, 2003
and on and after September 1, 2004 as provided in Section 3-85
of the Use Tax Act, may be used by that retailer to satisfy
Retailers' Occupation Tax liability in the amount claimed in
the certification, not to exceed 6.25% of the receipts subject
to tax from a qualifying purchase. A Manufacturer's Purchase
Credit reported on any original or amended return filed under
this Act after October 20, 2003 for reporting periods prior to
September 1, 2004 shall be disallowed. Manufacturer's Purchase
Credit reported on annual returns due on or after January 1,
2005 will be disallowed for periods prior to September 1,
2004. No Manufacturer's Purchase Credit may be used after
September 30, 2003 through August 31, 2004 to satisfy any tax
liability imposed under this Act, including any audit
liability.

SB3019 Enrolled - 1190 - LRB104 20255 HLH 33706 b
Beginning on July 1, 2023 and through December 31, 2032, a
retailer may accept a Sustainable Aviation Fuel Purchase
Credit certification from an air common carrier-purchaser in
satisfaction of Use Tax on aviation fuel as provided in
Section 3-87 of the Use Tax Act if the purchaser provides the
appropriate documentation as required by Section 3-87 of the
Use Tax Act. A Sustainable Aviation Fuel Purchase Credit
certification accepted by a retailer in accordance with this
paragraph may be used by that retailer to satisfy Retailers'
Occupation Tax liability (but not in satisfaction of penalty
or interest) in the amount claimed in the certification, not
to exceed 6.25% of the receipts subject to tax from a sale of
aviation fuel. In addition, for a sale of aviation fuel to
qualify to earn the Sustainable Aviation Fuel Purchase Credit,
retailers must retain in their books and records a
certification from the producer of the aviation fuel that the
aviation fuel sold by the retailer and for which a sustainable
aviation fuel purchase credit was earned meets the definition
of sustainable aviation fuel under Section 3-87 of the Use Tax
Act. The documentation must include detail sufficient for the
Department to determine the number of gallons of sustainable
aviation fuel sold.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The

SB3019 Enrolled - 1191 - LRB104 20255 HLH 33706 b
taxpayer shall also file a return with the Department for each
of the first 2 months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in the business of selling tangible
personal property at retail in this State;
3. The total amount of taxable receipts received by
him during the preceding calendar month from sales of
tangible personal property by him during such preceding
calendar month, including receipts from charge and time
sales, but less all deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due; and
6. Such other reasonable information as the Department
may require.
Every person engaged in the business of selling aviation
fuel at retail in this State during the preceding calendar
month shall, instead of reporting and paying tax as otherwise
required by this Section, report and pay such tax on a separate
aviation fuel tax return. The requirements related to the
return shall be as otherwise provided in this Section.
Notwithstanding any other provisions of this Act to the
contrary, retailers selling aviation fuel shall file all
aviation fuel tax returns and shall make all aviation fuel tax

SB3019 Enrolled - 1192 - LRB104 20255 HLH 33706 b
payments by electronic means in the manner and form required
by the Department. For purposes of this Section, "aviation
fuel" means jet fuel and aviation gasoline.
Beginning on October 1, 2003, any person who is not a
licensed distributor, importing distributor, or manufacturer,
as defined in the Liquor Control Act of 1934, but is engaged in
the business of selling, at retail, alcoholic liquor shall
file a statement with the Department of Revenue, in a format
and at a time prescribed by the Department, showing the total
amount paid for alcoholic liquor purchased during the
preceding month and such other information as is reasonably
required by the Department. The Department may adopt rules to
require that this statement be filed in an electronic or
telephonic format. Such rules may provide for exceptions from
the filing requirements of this paragraph. For the purposes of
this paragraph, the term "alcoholic liquor" shall have the
meaning prescribed in the Liquor Control Act of 1934.
Beginning on October 1, 2003, every distributor, importing
distributor, and manufacturer of alcoholic liquor as defined
in the Liquor Control Act of 1934, shall file a statement with
the Department of Revenue, no later than the 10th day of the
month for the preceding month during which transactions
occurred, by electronic means, showing the total amount of
gross receipts from the sale of alcoholic liquor sold or
distributed during the preceding month to purchasers;
identifying the purchaser to whom it was sold or distributed;

SB3019 Enrolled - 1193 - LRB104 20255 HLH 33706 b
the purchaser's tax registration number; and such other
information reasonably required by the Department. A
distributor, importing distributor, or manufacturer of
alcoholic liquor must personally deliver, mail, or provide by
electronic means to each retailer listed on the monthly
statement a report containing a cumulative total of that
distributor's, importing distributor's, or manufacturer's
total sales of alcoholic liquor to that retailer no later than
the 10th day of the month for the preceding month during which
the transaction occurred. The distributor, importing
distributor, or manufacturer shall notify the retailer as to
the method by which the distributor, importing distributor, or
manufacturer will provide the sales information. If the
retailer is unable to receive the sales information by
electronic means, the distributor, importing distributor, or
manufacturer shall furnish the sales information by personal
delivery or by mail. For purposes of this paragraph, the term
"electronic means" includes, but is not limited to, the use of
a secure Internet website, e-mail, or facsimile.
If a total amount of less than $1 is payable, refundable or
creditable, such amount shall be disregarded if it is less
than 50 cents and shall be increased to $1 if it is 50 cents or
more.
Notwithstanding any other provision of this Act to the
contrary, retailers subject to tax on cannabis shall file all
cannabis tax returns and shall make all cannabis tax payments

SB3019 Enrolled - 1194 - LRB104 20255 HLH 33706 b
by electronic means in the manner and form required by the
Department.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall
make all payments required by rules of the Department by
electronic funds transfer. Beginning October 1, 1995, a
taxpayer who has an average monthly tax liability of $50,000
or more shall make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1,
2000, a taxpayer who has an annual tax liability of $200,000 or
more shall make all payments required by rules of the
Department by electronic funds transfer. The term "annual tax
liability" shall be the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year. The term "average monthly
tax liability" shall be the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year divided by 12. Beginning
on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the
Department of Revenue Law shall make all payments required by

SB3019 Enrolled - 1195 - LRB104 20255 HLH 33706 b
rules of the Department by electronic funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make
payments by electronic funds transfer. All taxpayers required
to make payments by electronic funds transfer shall make those
payments for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those
payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
Any amount which is required to be shown or reported on any
return or other document under this Act shall, if such amount
is not a whole-dollar amount, be increased to the nearest
whole-dollar amount in any case where the fractional part of a
dollar is 50 cents or more, and decreased to the nearest
whole-dollar amount where the fractional part of a dollar is
less than 50 cents.
If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may

SB3019 Enrolled - 1196 - LRB104 20255 HLH 33706 b
authorize his returns to be filed on a quarter annual basis,
with the return for January, February, and March of a given
year being due by April 20 of such year; with the return for
April, May, and June of a given year being due by July 20 of
such year; with the return for July, August, and September of a
given year being due by October 20 of such year, and with the
return for October, November, and December of a given year
being due by January 20 of the following year.
If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
liability with the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January 20
of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act concerning
the time within which a retailer may file his return, in the
case of any retailer who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such retailer shall file a final return under this Act with the
Department not more than one month after discontinuing such
business.
Where the same person has more than one business
registered with the Department under separate registrations

SB3019 Enrolled - 1197 - LRB104 20255 HLH 33706 b
under this Act, such person may not file each return that is
due as a single return covering all such registered
businesses, but shall file separate returns for each such
registered business.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, except as otherwise provided in this
Section, every retailer selling this kind of tangible personal
property shall file, with the Department, upon a form to be
prescribed and supplied by the Department, a separate return
for each such item of tangible personal property which the
retailer sells, except that if, in the same transaction, (i) a
retailer of aircraft, watercraft, motor vehicles, or trailers
transfers more than one aircraft, watercraft, motor vehicle,
or trailer to another aircraft, watercraft, motor vehicle
retailer, or trailer retailer for the purpose of resale or
(ii) a retailer of aircraft, watercraft, motor vehicles, or
trailers transfers more than one aircraft, watercraft, motor
vehicle, or trailer to a purchaser for use as a qualifying
rolling stock as provided in Section 2-5 of this Act, then that
seller may report the transfer of all aircraft, watercraft,
motor vehicles, or trailers involved in that transaction to
the Department on the same uniform invoice-transaction
reporting return form. For purposes of this Section,
"watercraft" means a Class 2, Class 3, or Class 4 watercraft as
defined in Section 3-2 of the Boat Registration and Safety

SB3019 Enrolled - 1198 - LRB104 20255 HLH 33706 b
Act, a personal watercraft, or any boat equipped with an
inboard motor.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, every person who is engaged in the
business of leasing or renting such items and who, in
connection with such business, sells any such item to a
retailer for the purpose of resale is, notwithstanding any
other provision of this Section to the contrary, authorized to
meet the return-filing requirement of this Act by reporting
the transfer of all the aircraft, watercraft, motor vehicles,
or trailers transferred for resale during a month to the
Department on the same uniform invoice-transaction reporting
return form on or before the 20th of the month following the
month in which the transfer takes place. Notwithstanding any
other provision of this Act to the contrary, all returns filed
under this paragraph must be filed by electronic means in the
manner and form as required by the Department.
Any retailer who sells only motor vehicles, watercraft,
aircraft, or trailers that are required to be registered with
an agency of this State, so that all retailers' occupation tax
liability is required to be reported, and is reported, on such
transaction reporting returns and who is not otherwise
required to file monthly or quarterly returns, need not file
monthly or quarterly returns. However, those retailers shall
be required to file returns on an annual basis.

SB3019 Enrolled - 1199 - LRB104 20255 HLH 33706 b
The transaction reporting return, in the case of motor
vehicles or trailers that are required to be registered with
an agency of this State, shall be the same document as the
Uniform Invoice referred to in Section 5-402 of the Illinois
Vehicle Code and must show the name and address of the seller;
the name and address of the purchaser; the amount of the
selling price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 1 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling
price; the amount of tax due from the retailer with respect to
such transaction; the amount of tax collected from the
purchaser by the retailer on such transaction (or satisfactory
evidence that such tax is not due in that particular instance,
if that is claimed to be the fact); the place and date of the
sale; a sufficient identification of the property sold; such
other information as is required in Section 5-402 of the
Illinois Vehicle Code, and such other information as the
Department may reasonably require.
The transaction reporting return in the case of watercraft
or aircraft must show the name and address of the seller; the
name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer

SB3019 Enrolled - 1200 - LRB104 20255 HLH 33706 b
for the traded-in tangible personal property, if any, to the
extent to which Section 1 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling
price; the amount of tax due from the retailer with respect to
such transaction; the amount of tax collected from the
purchaser by the retailer on such transaction (or satisfactory
evidence that such tax is not due in that particular instance,
if that is claimed to be the fact); the place and date of the
sale, a sufficient identification of the property sold, and
such other information as the Department may reasonably
require.
Such transaction reporting return shall be filed not later
than 20 days after the day of delivery of the item that is
being sold, but may be filed by the retailer at any time sooner
than that if he chooses to do so. The transaction reporting
return and tax remittance or proof of exemption from the
Illinois use tax may be transmitted to the Department by way of
the State agency with which, or State officer with whom the
tangible personal property must be titled or registered (if
titling or registration is required) if the Department and
such agency or State officer determine that this procedure
will expedite the processing of applications for title or
registration.
With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit

SB3019 Enrolled - 1201 - LRB104 20255 HLH 33706 b
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the
Department shall issue, in the purchaser's name, a use tax
receipt (or a certificate of exemption if the Department is
satisfied that the particular sale is tax-exempt tax exempt)
which such purchaser may submit to the agency with which, or
State officer with whom, he must title or register the
tangible personal property that is involved (if titling or
registration is required) in support of such purchaser's
application for an Illinois certificate or other evidence of
title or registration to such tangible personal property.
No retailer's failure or refusal to remit tax under this
Act precludes a user, who has paid the proper tax to the
retailer, from obtaining his certificate of title or other
evidence of title or registration (if titling or registration
is required) upon satisfying the Department that such user has
paid the proper tax (if tax is due) to the retailer. The
Department shall adopt appropriate rules to carry out the
mandate of this paragraph.
If the user who would otherwise pay tax to the retailer
wants the transaction reporting return filed and the payment
of the tax or proof of exemption made to the Department before
the retailer is willing to take these actions and such user has
not paid the tax to the retailer, such user may certify to the
fact of such delay by the retailer and may (upon the Department
being satisfied of the truth of such certification) transmit

SB3019 Enrolled - 1202 - LRB104 20255 HLH 33706 b
the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to
the Department and obtain his tax receipt or exemption
determination, in which event the transaction reporting return
and tax remittance (if a tax payment was required) shall be
credited by the Department to the proper retailer's account
with the Department, but without the vendor's discount
provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the
same amount and in the same form in which it would be remitted
if the tax had been remitted to the Department by the retailer.
On and after January 1, 2025, with respect to the lease of
trailers, other than semitrailers as defined in Section 1-187
of the Illinois Vehicle Code, that are required to be
registered with an agency of this State and that are subject to
the tax on lease receipts under this Act, notwithstanding any
other provision of this Act to the contrary, for the purpose of
reporting and paying tax under this Act on those lease
receipts, lessors shall file returns in addition to and
separate from the transaction reporting return. Lessors shall
file those lease returns and make payment to the Department by
electronic means on or before the 20th day of each month
following the month, quarter, or year, as applicable, in which
lease receipts were received. All lease receipts received by
the lessor from the lease of those trailers during the same
reporting period shall be reported and tax shall be paid on a

SB3019 Enrolled - 1203 - LRB104 20255 HLH 33706 b
single return form to be prescribed by the Department.
Refunds made by the seller during the preceding return
period to purchasers, on account of tangible personal property
returned to the seller, shall be allowed as a deduction under
subdivision 5 of his monthly or quarterly return, as the case
may be, in case the seller had theretofore included the
receipts from the sale of such tangible personal property in a
return filed by him and had paid the tax imposed by this Act
with respect to such receipts.
Where the seller is a corporation, the return filed on
behalf of such corporation shall be signed by the president,
vice-president, secretary, or treasurer or by the properly
accredited agent of such corporation.
Where the seller is a limited liability company, the
return filed on behalf of the limited liability company shall
be signed by a manager, member, or properly accredited agent
of the limited liability company.
Except as provided in this Section, the retailer filing
the return under this Section shall, at the time of filing such
return, pay to the Department the amount of tax imposed by this
Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
on and after January 1, 1990, or $5 per calendar year,
whichever is greater, which is allowed to reimburse the
retailer for the expenses incurred in keeping records,
preparing and filing returns, remitting the tax and supplying
data to the Department on request. A a certified service

SB3019 Enrolled - 1204 - LRB104 20255 HLH 33706 b
provider, as defined in the Leveling the Playing Field for
Illinois Retail Act, filing the return under this Section on
behalf of a remote retailer or a retailer maintaining a place
of business in this State shall, at the time of such return,
pay to the Department the amount of tax imposed by this Act
less a discount of 1.75%. A remote retailer or a retailer
maintaining a place of business in this State using a
certified service provider to file a return on its behalf, as
provided in the Leveling the Playing Field for Illinois Retail
Act, is not eligible for the discount. Beginning with returns
due on or after January 1, 2025, the vendor's discount allowed
in this Section, the Service Occupation Tax Act, the Use Tax
Act, and the Service Use Tax Act, including any local tax
administered by the Department and reported on the same
return, shall not exceed $1,000 per month in the aggregate for
returns other than transaction returns filed during the month.
When determining the discount allowed under this Section,
retailers shall include the amount of tax that would have been
due at the 1% rate but for the 0% rate imposed under Public Act
102-700. When determining the discount allowed under this
Section, retailers shall include the amount of tax that would
have been due at the 6.25% rate but for the 1.25% rate imposed
on sales tax holiday items under Public Act 102-700 and under
this amendatory Act of the 104th General Assembly. The
discount under this Section is not allowed for the 1.25%
portion of taxes paid on aviation fuel that is subject to the

SB3019 Enrolled - 1205 - LRB104 20255 HLH 33706 b
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133. Any prepayment made pursuant to Section 2d of this Act
shall be included in the amount on which such discount is
computed. In the case of retailers who report and pay the tax
on a transaction by transaction basis, as provided in this
Section, such discount shall be taken with each such tax
remittance instead of when such retailer files his periodic
return, but, beginning with returns due on or after January 1,
2025, the vendor's discount allowed under this Section and the
Use Tax Act, including any local tax administered by the
Department and reported on the same transaction return, shall
not exceed $1,000 per month for all transaction returns filed
during the month. The discount allowed under this Section is
allowed only for returns that are filed in the manner required
by this Act. The Department may disallow the discount for
retailers whose certificate of registration is revoked at the
time the return is filed, but only if the Department's
decision to revoke the certificate of registration has become
final.
Before October 1, 2000, if the taxpayer's average monthly
tax liability to the Department under this Act, the Use Tax
Act, the Service Occupation Tax Act, and the Service Use Tax
Act, excluding any liability for prepaid sales tax to be
remitted in accordance with Section 2d of this Act, was
$10,000 or more during the preceding 4 complete calendar
quarters, he shall file a return with the Department each

SB3019 Enrolled - 1206 - LRB104 20255 HLH 33706 b
month by the 20th day of the month next following the month
during which such tax liability is incurred and shall make
payments to the Department on or before the 7th, 15th, 22nd and
last day of the month during which such liability is incurred.
On and after October 1, 2000, if the taxpayer's average
monthly tax liability to the Department under this Act, the
Use Tax Act, the Service Occupation Tax Act, and the Service
Use Tax Act, excluding any liability for prepaid sales tax to
be remitted in accordance with Section 2d of this Act, was
$20,000 or more during the preceding 4 complete calendar
quarters, he shall file a return with the Department each
month by the 20th day of the month next following the month
during which such tax liability is incurred and shall make
payment to the Department on or before the 7th, 15th, 22nd and
last day of the month during which such liability is incurred.
If the month during which such tax liability is incurred began
prior to January 1, 1985, each payment shall be in an amount
equal to 1/4 of the taxpayer's actual liability for the month
or an amount set by the Department not to exceed 1/4 of the
average monthly liability of the taxpayer to the Department
for the preceding 4 complete calendar quarters (excluding the
month of highest liability and the month of lowest liability
in such 4 quarter period). If the month during which such tax
liability is incurred begins on or after January 1, 1985 and
prior to January 1, 1987, each payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the

SB3019 Enrolled - 1207 - LRB104 20255 HLH 33706 b
month or 27.5% of the taxpayer's liability for the same
calendar month of the preceding year. If the month during
which such tax liability is incurred begins on or after
January 1, 1987 and prior to January 1, 1988, each payment
shall be in an amount equal to 22.5% of the taxpayer's actual
liability for the month or 26.25% of the taxpayer's liability
for the same calendar month of the preceding year. If the month
during which such tax liability is incurred begins on or after
January 1, 1988, and prior to January 1, 1989, or begins on or
after January 1, 1996, each payment shall be in an amount equal
to 22.5% of the taxpayer's actual liability for the month or
25% of the taxpayer's liability for the same calendar month of
the preceding year. If the month during which such tax
liability is incurred begins on or after January 1, 1989, and
prior to January 1, 1996, each payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the
month or 25% of the taxpayer's liability for the same calendar
month of the preceding year or 100% of the taxpayer's actual
liability for the quarter monthly reporting period. The amount
of such quarter monthly payments shall be credited against the
final tax liability of the taxpayer's return for that month.
Before October 1, 2000, once applicable, the requirement of
the making of quarter monthly payments to the Department by
taxpayers having an average monthly tax liability of $10,000
or more as determined in the manner provided above shall
continue until such taxpayer's average monthly liability to

SB3019 Enrolled - 1208 - LRB104 20255 HLH 33706 b
the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the
month of lowest liability) is less than $9,000, or until such
taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $10,000. However, if a
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $10,000
threshold stated above, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status.
On and after October 1, 2000, once applicable, the requirement
of the making of quarter monthly payments to the Department by
taxpayers having an average monthly tax liability of $20,000
or more as determined in the manner provided above shall
continue until such taxpayer's average monthly liability to
the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the
month of lowest liability) is less than $19,000 or until such
taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $20,000. However, if a
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the

SB3019 Enrolled - 1209 - LRB104 20255 HLH 33706 b
reasonably foreseeable future will fall below the $20,000
threshold stated above, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status.
The Department shall change such taxpayer's reporting status
unless it finds that such change is seasonal in nature and not
likely to be long term. Quarter monthly payment status shall
be determined under this paragraph as if the rate reduction to
0% in Public Act 102-700 on food for human consumption that is
to be consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption) had not occurred. For quarter monthly
payments due under this paragraph on or after July 1, 2023 and
through June 30, 2024, "25% of the taxpayer's liability for
the same calendar month of the preceding year" shall be
determined as if the rate reduction to 0% in Public Act 102-700
had not occurred. Quarter monthly payment status shall be
determined under this paragraph as if the rate reduction to
1.25% in Public Act 102-700 and in this amendatory Act of the
104th General Assembly on sales tax holiday items had not
occurred. For quarter monthly payments due on or after July 1,
2023 and through June 30, 2024, and on or after July 1, 2027
and through June 30, 2028, "25% of the taxpayer's liability
for the same calendar month of the preceding year" shall be
determined as if the rate reduction to 1.25% in Public Act
102-700 and in this amendatory Act of the 104th General

SB3019 Enrolled - 1210 - LRB104 20255 HLH 33706 b
Assembly on sales tax holiday items had not occurred. If any
such quarter monthly payment is not paid at the time or in the
amount required by this Section, then the taxpayer shall be
liable for penalties and interest on the difference between
the minimum amount due as a payment and the amount of such
quarter monthly payment actually and timely paid, except
insofar as the taxpayer has previously made payments for that
month to the Department in excess of the minimum payments
previously due as provided in this Section. The Department
shall make reasonable rules and regulations to govern the
quarter monthly payment amount and quarter monthly payment
dates for taxpayers who file on other than a calendar monthly
basis.
The provisions of this paragraph apply before October 1,
2001. Without regard to whether a taxpayer is required to make
quarter monthly payments as specified above, any taxpayer who
is required by Section 2d of this Act to collect and remit
prepaid taxes and has collected prepaid taxes which average in
excess of $25,000 per month during the preceding 2 complete
calendar quarters, shall file a return with the Department as
required by Section 2f and shall make payments to the
Department on or before the 7th, 15th, 22nd and last day of the
month during which such liability is incurred. If the month
during which such tax liability is incurred began prior to
September 1, 1985 (the effective date of Public Act 84-221),
each payment shall be in an amount not less than 22.5% of the

SB3019 Enrolled - 1211 - LRB104 20255 HLH 33706 b
taxpayer's actual liability under Section 2d. If the month
during which such tax liability is incurred begins on or after
January 1, 1986, each payment shall be in an amount equal to
22.5% of the taxpayer's actual liability for the month or
27.5% of the taxpayer's liability for the same calendar month
of the preceding calendar year. If the month during which such
tax liability is incurred begins on or after January 1, 1987,
each payment shall be in an amount equal to 22.5% of the
taxpayer's actual liability for the month or 26.25% of the
taxpayer's liability for the same calendar month of the
preceding year. The amount of such quarter monthly payments
shall be credited against the final tax liability of the
taxpayer's return for that month filed under this Section or
Section 2f, as the case may be. Once applicable, the
requirement of the making of quarter monthly payments to the
Department pursuant to this paragraph shall continue until
such taxpayer's average monthly prepaid tax collections during
the preceding 2 complete calendar quarters is $25,000 or less.
If any such quarter monthly payment is not paid at the time or
in the amount required, the taxpayer shall be liable for
penalties and interest on such difference, except insofar as
the taxpayer has previously made payments for that month in
excess of the minimum payments previously due.
The provisions of this paragraph apply on and after
October 1, 2001. Without regard to whether a taxpayer is
required to make quarter monthly payments as specified above,

SB3019 Enrolled - 1212 - LRB104 20255 HLH 33706 b
any taxpayer who is required by Section 2d of this Act to
collect and remit prepaid taxes and has collected prepaid
taxes that average in excess of $20,000 per month during the
preceding 4 complete calendar quarters shall file a return
with the Department as required by Section 2f and shall make
payments to the Department on or before the 7th, 15th, 22nd,
and last day of the month during which the liability is
incurred. Each payment shall be in an amount equal to 22.5% of
the taxpayer's actual liability for the month or 25% of the
taxpayer's liability for the same calendar month of the
preceding year. The amount of the quarter monthly payments
shall be credited against the final tax liability of the
taxpayer's return for that month filed under this Section or
Section 2f, as the case may be. Once applicable, the
requirement of the making of quarter monthly payments to the
Department pursuant to this paragraph shall continue until the
taxpayer's average monthly prepaid tax collections during the
preceding 4 complete calendar quarters (excluding the month of
highest liability and the month of lowest liability) is less
than $19,000 or until such taxpayer's average monthly
liability to the Department as computed for each calendar
quarter of the 4 preceding complete calendar quarters is less
than $20,000. If any such quarter monthly payment is not paid
at the time or in the amount required, the taxpayer shall be
liable for penalties and interest on such difference, except
insofar as the taxpayer has previously made payments for that

SB3019 Enrolled - 1213 - LRB104 20255 HLH 33706 b
month in excess of the minimum payments previously due.
If any payment provided for in this Section exceeds the
taxpayer's liabilities under this Act, the Use Tax Act, the
Service Occupation Tax Act, and the Service Use Tax Act, as
shown on an original monthly return, the Department shall, if
requested by the taxpayer, issue to the taxpayer a credit
memorandum no later than 30 days after the date of payment. The
credit evidenced by such credit memorandum may be assigned by
the taxpayer to a similar taxpayer under this Act, the Use Tax
Act, the Service Occupation Tax Act, or the Service Use Tax
Act, in accordance with reasonable rules and regulations to be
prescribed by the Department. If no such request is made, the
taxpayer may credit such excess payment against tax liability
subsequently to be remitted to the Department under this Act,
the Use Tax Act, the Service Occupation Tax Act, or the Service
Use Tax Act, in accordance with reasonable rules and
regulations prescribed by the Department. If the Department
subsequently determined that all or any part of the credit
taken was not actually due to the taxpayer, the taxpayer's
vendor's discount shall be reduced, if necessary, to reflect
the difference between the credit taken and that actually due,
and that taxpayer shall be liable for penalties and interest
on such difference.
If a retailer of motor fuel is entitled to a credit under
Section 2d of this Act which exceeds the taxpayer's liability
to the Department under this Act for the month for which the

SB3019 Enrolled - 1214 - LRB104 20255 HLH 33706 b
taxpayer is filing a return, the Department shall issue the
taxpayer a credit memorandum for the excess.
The net revenue realized at the 15% rate under either
Section 4 or Section 5 of this Act shall be deposited as
follows: (i) notwithstanding the provisions of this Section to
the contrary, the net revenue realized from the portion of the
rate in excess of 5% shall be deposited into the State and
Local Sales Tax Reform Fund; and (ii) the net revenue realized
from the 5% portion of the rate shall be deposited as provided
in this Section for the 5% portion of the 6.25% general rate
imposed under this Act.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund, a special fund in the
State treasury which is hereby created, the net revenue
realized for the preceding month from the 1% tax imposed under
this Act.
Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund, a special
fund in the State treasury which is hereby created, 4% of the
net revenue realized for the preceding month from the 6.25%
general rate other than aviation fuel sold on or after
December 1, 2019. This exception for aviation fuel only
applies for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the County and Mass Transit District Fund 20% of the

SB3019 Enrolled - 1215 - LRB104 20255 HLH 33706 b
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol. If, in any
month, the tax on sales tax holiday items, as defined in
Section 2-8, is imposed at the rate of 1.25%, then the
Department shall pay 20% of the net revenue realized for that
month from the 1.25% rate on the selling price of sales tax
holiday items into the County and Mass Transit District Fund.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the net revenue
realized for the preceding month from the 6.25% general rate
on the selling price of tangible personal property other than
aviation fuel sold on or after December 1, 2019. This
exception for aviation fuel only applies for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be
required for refunds of the 20% portion of the tax on aviation
fuel under this Act, which amount shall be deposited into the
Aviation Fuel Sales Tax Refund Fund. The Department shall only
pay moneys into the State Aviation Program Fund and the
Aviation Fuel Sales Tax Refund Fund under this Act for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49

SB3019 Enrolled - 1216 - LRB104 20255 HLH 33706 b
U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the Local Government Tax Fund 80% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of motor fuel and gasohol. If, in any month, the
tax on sales tax holiday items, as defined in Section 2-8, is
imposed at the rate of 1.25%, then the Department shall pay 80%
of the net revenue realized for that month from the 1.25% rate
on the selling price of sales tax holiday items into the Local
Government Tax Fund.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2011, each month the Department shall
pay into the Clean Air Act Permit Fund 80% of the net revenue
realized for the preceding month from the 6.25% general rate
on the selling price of sorbents used in Illinois in the
process of sorbent injection as used to comply with the
Environmental Protection Act or the federal Clean Air Act, but
the total payment into the Clean Air Act Permit Fund under this
Act and the Use Tax Act shall not exceed $2,000,000 in any
fiscal year.

SB3019 Enrolled - 1217 - LRB104 20255 HLH 33706 b
Beginning July 1, 2013, each month the Department shall
pay into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service Use Tax
Act, and the Service Occupation Tax Act an amount equal to the
average monthly deficit in the Underground Storage Tank Fund
during the prior year, as certified annually by the Illinois
Environmental Protection Agency, but the total payment into
the Underground Storage Tank Fund under this Act, the Use Tax
Act, the Service Use Tax Act, and the Service Occupation Tax
Act shall not exceed $18,000,000 in any State fiscal year. As
used in this paragraph, the "average monthly deficit" shall be
equal to the difference between the average monthly claims for
payment by the fund and the average monthly revenues deposited
into the fund, excluding payments made pursuant to this
paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, the Service
Use Tax Act, the Service Occupation Tax Act, and this Act, each
month the Department shall deposit $500,000 into the State
Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case

SB3019 Enrolled - 1218 - LRB104 20255 HLH 33706 b
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to this Act,
Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
Act, and Section 9 of the Service Occupation Tax Act, such Acts
being hereinafter called the "Tax Acts" and such aggregate of
2.2% or 3.8%, as the case may be, of moneys being hereinafter
called the "Tax Act Amount", and (2) the amount transferred to
the Build Illinois Fund from the State and Local Sales Tax
Reform Fund shall be less than the Annual Specified Amount (as
hereinafter defined), an amount equal to the difference shall
be immediately paid into the Build Illinois Fund from other
moneys received by the Department pursuant to the Tax Acts;
the "Annual Specified Amount" means the amounts specified
below for fiscal years 1986 through 1993:
Fiscal Year Annual Specified Amount
1986 $54,800,000
1987 $76,650,000
1988 $80,480,000
1989 $88,510,000
1990 $115,330,000
1991 $145,470,000
1992 $182,730,000
1993 $206,520,000;
and means the Certified Annual Debt Service Requirement (as
defined in Section 13 of the Build Illinois Bond Act) or the
Tax Act Amount, whichever is greater, for fiscal year 1994 and

SB3019 Enrolled - 1219 - LRB104 20255 HLH 33706 b
each fiscal year thereafter; and further provided, that if on
the last business day of any month the sum of (1) the Tax Act
Amount required to be deposited into the Build Illinois Bond
Account in the Build Illinois Fund during such month and (2)
the amount transferred to the Build Illinois Fund from the
State and Local Sales Tax Reform Fund shall have been less than
1/12 of the Annual Specified Amount, an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and, further provided, that in no event shall the
payments required under the preceding proviso result in
aggregate payments into the Build Illinois Fund pursuant to
this clause (b) for any fiscal year in excess of the greater of
(i) the Tax Act Amount or (ii) the Annual Specified Amount for
such fiscal year. The amounts payable into the Build Illinois
Fund under clause (b) of the first sentence in this paragraph
shall be payable only until such time as the aggregate amount
on deposit under each trust indenture securing Bonds issued
and outstanding pursuant to the Build Illinois Bond Act is
sufficient, taking into account any future investment income,
to fully provide, in accordance with such indenture, for the
defeasance of or the payment of the principal of, premium, if
any, and interest on the Bonds secured by such indenture and on
any Bonds expected to be issued thereafter and all fees and
costs payable with respect thereto, all as certified by the
Director of the Bureau of the Budget (now Governor's Office of

SB3019 Enrolled - 1220 - LRB104 20255 HLH 33706 b
Management and Budget). If on the last business day of any
month in which Bonds are outstanding pursuant to the Build
Illinois Bond Act, the aggregate of moneys deposited into in
the Build Illinois Bond Account in the Build Illinois Fund in
such month shall be less than the amount required to be
transferred in such month from the Build Illinois Bond Account
to the Build Illinois Bond Retirement and Interest Fund
pursuant to Section 13 of the Build Illinois Bond Act, an
amount equal to such deficiency shall be immediately paid from
other moneys received by the Department pursuant to the Tax
Acts to the Build Illinois Fund; provided, however, that any
amounts paid to the Build Illinois Fund in any fiscal year
pursuant to this sentence shall be deemed to constitute
payments pursuant to clause (b) of the first sentence of this
paragraph and shall reduce the amount otherwise payable for
such fiscal year pursuant to that clause (b). The moneys
received by the Department pursuant to this Act and required
to be deposited into the Build Illinois Fund are subject to the
pledge, claim and charge set forth in Section 12 of the Build
Illinois Bond Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not

SB3019 Enrolled - 1221 - LRB104 20255 HLH 33706 b
in excess of sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000

SB3019 Enrolled - 1222 - LRB104 20255 HLH 33706 b
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 300,000,000
2022 300,000,000
2023 300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034 375,000,000
2035 375,000,000
2036 450,000,000
and

SB3019 Enrolled - 1223 - LRB104 20255 HLH 33706 b
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, for aviation fuel sold on or after December 1, 2019,
the Department shall each month deposit into the Aviation Fuel

SB3019 Enrolled - 1224 - LRB104 20255 HLH 33706 b
Sales Tax Refund Fund an amount estimated by the Department to
be required for refunds of the 80% portion of the tax on
aviation fuel under this Act. The Department shall only
deposit moneys into the Aviation Fuel Sales Tax Refund Fund
under this paragraph for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois
Tax Increment Fund 0.27% of 80% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, and the
Illinois Tax Increment Fund pursuant to the preceding
paragraphs or in any amendments to this Section hereafter
enacted, beginning on the first day of the first calendar
month to occur on or after August 26, 2014 (the effective date
of Public Act 98-1098), each month, from the collections made
under Section 9 of the Use Tax Act, Section 9 of the Service
Use Tax Act, Section 9 of the Service Occupation Tax Act, and
Section 3 of the Retailers' Occupation Tax Act, the Department
shall pay into the Tax Compliance and Administration Fund, to

SB3019 Enrolled - 1225 - LRB104 20255 HLH 33706 b
be used, subject to appropriation, to fund additional auditors
and compliance personnel at the Department of Revenue, an
amount equal to 1/12 of 5% of 80% of the cash receipts
collected during the preceding fiscal year by the Audit Bureau
of the Department under the Use Tax Act, the Service Use Tax
Act, the Service Occupation Tax Act, the Retailers' Occupation
Tax Act, and associated local occupation and use taxes
administered by the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, the Energy Infrastructure Fund, and the
Tax Compliance and Administration Fund as provided in this
Section, beginning on July 1, 2018 the Department shall pay
each month into the Downstate Public Transportation Fund the
moneys required to be so paid under Section 2-3 of the
Downstate Public Transportation Act.
Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act

SB3019 Enrolled - 1226 - LRB104 20255 HLH 33706 b
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year.............................Total Deposit
2024.....................................$200,000,000
2025....................................$206,000,000
2026....................................$212,200,000
2027....................................$218,500,000
2028....................................$225,100,000
2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000
2034....................................$341,200,000
2035....................................$351,400,000
2036....................................$361,900,000
2037....................................$372,800,000

SB3019 Enrolled - 1227 - LRB104 20255 HLH 33706 b
2038....................................$384,000,000
2039....................................$395,500,000
2040....................................$407,400,000
2041....................................$419,600,000
2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the County and Mass Transit
District Fund, the Local Government Tax Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 16% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning July 1,
2022 and until July 1, 2023, subject to the payment of amounts
into the County and Mass Transit District Fund, the Local
Government Tax Fund, the Build Illinois Fund, the McCormick
Place Expansion Project Fund, the Illinois Tax Increment Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 32% of the net
revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning July 1, 2023 and until July 1, 2024,
subject to the payment of amounts into the County and Mass
Transit District Fund, the Local Government Tax Fund, the

SB3019 Enrolled - 1228 - LRB104 20255 HLH 33706 b
Build Illinois Fund, the McCormick Place Expansion Project
Fund, the Illinois Tax Increment Fund, and the Tax Compliance
and Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 48% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning July 1,
2024 and until July 1, 2026, subject to the payment of amounts
into the County and Mass Transit District Fund, the Local
Government Tax Fund, the Build Illinois Fund, the McCormick
Place Expansion Project Fund, the Illinois Tax Increment Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 64% of the net
revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning on July 1, 2026, subject to the payment of
amounts into the County and Mass Transit District Fund, the
Local Government Tax Fund, the Build Illinois Fund, the
McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, and the Tax Compliance and Administration Fund
as provided in this Section, the Department shall pay each
month into the Road Fund the amount estimated to represent 80%
of the net revenue realized from the taxes imposed on motor
fuel and gasohol. As used in this paragraph "motor fuel" has
the meaning given to that term in Section 1.1 of the Motor Fuel
Tax Law, and "gasohol" has the meaning given to that term in
Section 3-40 of the Use Tax Act.

SB3019 Enrolled - 1229 - LRB104 20255 HLH 33706 b
Until July 1, 2025, of the remainder of the moneys
received by the Department pursuant to this Act, 75% thereof
shall be paid into the State treasury and 25% shall be reserved
in a special account and used only for the transfer to the
Common School Fund as part of the monthly transfer from the
General Revenue Fund in accordance with Section 8a of the
State Finance Act. Beginning July 1, 2025, of the remainder of
the moneys received by the Department pursuant to this Act,
75% shall be deposited into the General Revenue Fund and 25%
shall be deposited into the Common School Fund.
The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.
Such annual return to the Department shall include a statement
of gross receipts as shown by the retailer's last federal
income tax return. If the total receipts of the business as
reported in the federal income tax return do not agree with the
gross receipts reported to the Department of Revenue for the
same period, the retailer shall attach to his annual return a
schedule showing a reconciliation of the 2 amounts and the
reasons for the difference. The retailer's annual return to
the Department shall also disclose the cost of goods sold by
the retailer during the year covered by such return, opening
and closing inventories of such goods for such year, costs of

SB3019 Enrolled - 1230 - LRB104 20255 HLH 33706 b
goods used from stock or taken from stock and given away by the
retailer during such year, payroll information of the
retailer's business during such year and any additional
reasonable information which the Department deems would be
helpful in determining the accuracy of the monthly, quarterly,
or annual returns filed by such retailer as provided for in
this Section.
If the annual information return required by this Section
is not filed when and as required, the taxpayer shall be liable
as follows:
(i) Until January 1, 1994, the taxpayer shall be
liable for a penalty equal to 1/6 of 1% of the tax due from
such taxpayer under this Act during the period to be
covered by the annual return for each month or fraction of
a month until such return is filed as required, the
penalty to be assessed and collected in the same manner as
any other penalty provided for in this Act.
(ii) On and after January 1, 1994, the taxpayer shall
be liable for a penalty as described in Section 3-4 of the
Uniform Penalty and Interest Act.
The chief executive officer, proprietor, owner, or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person who
willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and punished
accordingly. The annual return form prescribed by the

SB3019 Enrolled - 1231 - LRB104 20255 HLH 33706 b
Department shall include a warning that the person signing the
return may be liable for perjury.
The provisions of this Section concerning the filing of an
annual information return do not apply to a retailer who is not
required to file an income tax return with the United States
Government.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to
such sales, if the retailers who are affected do not make
written objection to the Department to this arrangement.
Any person who promotes, organizes, or provides retail
selling space for concessionaires or other types of sellers at

SB3019 Enrolled - 1232 - LRB104 20255 HLH 33706 b
the Illinois State Fair, DuQuoin State Fair, county fairs,
local fairs, art shows, flea markets, and similar exhibitions
or events, including any transient merchant as defined by
Section 2 of the Transient Merchant Act of 1987, is required to
file a report with the Department providing the name of the
merchant's business, the name of the person or persons engaged
in merchant's business, the permanent address and Illinois
Retailers Occupation Tax Registration Number of the merchant,
the dates and location of the event, and other reasonable
information that the Department may require. The report must
be filed not later than the 20th day of the month next
following the month during which the event with retail sales
was held. Any person who fails to file a report required by
this Section commits a business offense and is subject to a
fine not to exceed $250.
Any person engaged in the business of selling tangible
personal property at retail as a concessionaire or other type
of seller at the Illinois State Fair, county fairs, art shows,
flea markets, and similar exhibitions or events, or any
transient merchants, as defined by Section 2 of the Transient
Merchant Act of 1987, may be required to make a daily report of
the amount of such sales to the Department and to make a daily
payment of the full amount of tax due. The Department shall
impose this requirement when it finds that there is a
significant risk of loss of revenue to the State at such an
exhibition or event. Such a finding shall be based on evidence

SB3019 Enrolled - 1233 - LRB104 20255 HLH 33706 b
that a substantial number of concessionaires or other sellers
who are not residents of Illinois will be engaging in the
business of selling tangible personal property at retail at
the exhibition or event, or other evidence of a significant
risk of loss of revenue to the State. The Department shall
notify concessionaires and other sellers affected by the
imposition of this requirement. In the absence of notification
by the Department, the concessionaires and other sellers shall
file their returns as otherwise required in this Section.
(Source: P.A. 103-9, eff. 6-7-23; 103-154, eff. 6-30-23;
103-363, eff. 7-28-23; 103-592, Article 75, Section 75-20,
eff. 1-1-25; 103-592, Article 110, Section 110-20, eff.
6-7-24; 103-605, eff. 7-1-24; 103-1055, eff. 12-20-24; 104-6,
Article 5, Section 5-25, eff. 6-16-25; 104-6, Article 25,
Section 25-20, eff. 6-16-25; 104-6, Article 35, Section 35-35,
eff. 6-16-25; revised 1-12-26.)
(Text of Section after amendment by P.A. 104-457)
Sec. 3. Except as provided in this Section, on or before
the twentieth day of each calendar month, every person engaged
in the business of selling, which, on and after January 1,
2025, includes leasing, tangible personal property at retail
in this State during the preceding calendar month shall file a
return with the Department, stating:
1. The name of the seller;
2. His residence address and the address of his

SB3019 Enrolled - 1234 - LRB104 20255 HLH 33706 b
principal place of business and the address of the
principal place of business (if that is a different
address) from which he engages in the business of selling
tangible personal property at retail in this State;
3. Total amount of receipts received by him during the
preceding calendar month or quarter, as the case may be,
from sales of tangible personal property, and from
services furnished, by him during such preceding calendar
month or quarter;
4. Total amount received by him during the preceding
calendar month or quarter on charge and time sales of
tangible personal property, and from services furnished,
by him prior to the month or quarter for which the return
is filed;
5. Deductions allowed by law;
6. Gross receipts which were received by him during
the preceding calendar month or quarter and upon the basis
of which the tax is imposed, including gross receipts on
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
food consisting of or infused with adult use cannabis,
soft drinks, and food that has been prepared for immediate
consumption) which were received during the preceding
calendar month or quarter and upon which tax would have
been due but for the 0% rate imposed under Public Act
102-700;

SB3019 Enrolled - 1235 - LRB104 20255 HLH 33706 b
7. The amount of credit provided in Section 2d of this
Act;
8. The amount of tax due, including the amount of tax
that would have been due on food for human consumption
that is to be consumed off the premises where it is sold
(other than alcoholic beverages, food consisting of or
infused with adult use cannabis, soft drinks, and food
that has been prepared for immediate consumption) but for
the 0% rate imposed under Public Act 102-700;
9. The signature of the taxpayer; and
10. Such other reasonable information as the
Department may require.
In the case of leases, except as otherwise provided in
this Act, the lessor must remit for each tax return period only
the tax applicable to that part of the selling price actually
received during such tax return period.
On and after January 1, 2018, except for returns required
to be filed prior to January 1, 2023 for motor vehicles,
watercraft, aircraft, and trailers that are required to be
registered with an agency of this State, with respect to
retailers whose annual gross receipts average $20,000 or more,
all returns required to be filed pursuant to this Act shall be
filed electronically. On and after January 1, 2023, with
respect to retailers whose annual gross receipts average
$20,000 or more, all returns required to be filed pursuant to
this Act, including, but not limited to, returns for motor

SB3019 Enrolled - 1236 - LRB104 20255 HLH 33706 b
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State, shall be filed
electronically. Retailers who demonstrate that they do not
have access to the Internet or demonstrate hardship in filing
electronically may petition the Department to waive the
electronic filing requirement.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Each return shall be accompanied by the statement of
prepaid tax issued pursuant to Section 2e for which credit is
claimed.
Prior to October 1, 2003 and on and after September 1,
2004, a retailer may accept a Manufacturer's Purchase Credit
certification from a purchaser in satisfaction of Use Tax as
provided in Section 3-85 of the Use Tax Act if the purchaser
provides the appropriate documentation as required by Section
3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
certification, accepted by a retailer prior to October 1, 2003
and on and after September 1, 2004 as provided in Section 3-85
of the Use Tax Act, may be used by that retailer to satisfy
Retailers' Occupation Tax liability in the amount claimed in
the certification, not to exceed 6.25% of the receipts subject
to tax from a qualifying purchase. A Manufacturer's Purchase
Credit reported on any original or amended return filed under

SB3019 Enrolled - 1237 - LRB104 20255 HLH 33706 b
this Act after October 20, 2003 for reporting periods prior to
September 1, 2004 shall be disallowed. Manufacturer's Purchase
Credit reported on annual returns due on or after January 1,
2005 will be disallowed for periods prior to September 1,
2004. No Manufacturer's Purchase Credit may be used after
September 30, 2003 through August 31, 2004 to satisfy any tax
liability imposed under this Act, including any audit
liability.
Beginning on July 1, 2023 and through December 31, 2032, a
retailer may accept a Sustainable Aviation Fuel Purchase
Credit certification from an air common carrier-purchaser in
satisfaction of Use Tax on aviation fuel as provided in
Section 3-87 of the Use Tax Act if the purchaser provides the
appropriate documentation as required by Section 3-87 of the
Use Tax Act. A Sustainable Aviation Fuel Purchase Credit
certification accepted by a retailer in accordance with this
paragraph may be used by that retailer to satisfy Retailers'
Occupation Tax liability (but not in satisfaction of penalty
or interest) in the amount claimed in the certification, not
to exceed 6.25% of the receipts subject to tax from a sale of
aviation fuel. In addition, for a sale of aviation fuel to
qualify to earn the Sustainable Aviation Fuel Purchase Credit,
retailers must retain in their books and records a
certification from the producer of the aviation fuel that the
aviation fuel sold by the retailer and for which a sustainable
aviation fuel purchase credit was earned meets the definition

SB3019 Enrolled - 1238 - LRB104 20255 HLH 33706 b
of sustainable aviation fuel under Section 3-87 of the Use Tax
Act. The documentation must include detail sufficient for the
Department to determine the number of gallons of sustainable
aviation fuel sold.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first 2 months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in the business of selling tangible
personal property at retail in this State;
3. The total amount of taxable receipts received by
him during the preceding calendar month from sales of
tangible personal property by him during such preceding
calendar month, including receipts from charge and time
sales, but less all deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due; and
6. Such other reasonable information as the Department
may require.
Every person engaged in the business of selling aviation

SB3019 Enrolled - 1239 - LRB104 20255 HLH 33706 b
fuel at retail in this State during the preceding calendar
month shall, instead of reporting and paying tax as otherwise
required by this Section, report and pay such tax on a separate
aviation fuel tax return. The requirements related to the
return shall be as otherwise provided in this Section.
Notwithstanding any other provisions of this Act to the
contrary, retailers selling aviation fuel shall file all
aviation fuel tax returns and shall make all aviation fuel tax
payments by electronic means in the manner and form required
by the Department. For purposes of this Section, "aviation
fuel" means jet fuel and aviation gasoline.
Beginning on October 1, 2003, any person who is not a
licensed distributor, importing distributor, or manufacturer,
as defined in the Liquor Control Act of 1934, but is engaged in
the business of selling, at retail, alcoholic liquor shall
file a statement with the Department of Revenue, in a format
and at a time prescribed by the Department, showing the total
amount paid for alcoholic liquor purchased during the
preceding month and such other information as is reasonably
required by the Department. The Department may adopt rules to
require that this statement be filed in an electronic or
telephonic format. Such rules may provide for exceptions from
the filing requirements of this paragraph. For the purposes of
this paragraph, the term "alcoholic liquor" shall have the
meaning prescribed in the Liquor Control Act of 1934.
Beginning on October 1, 2003, every distributor, importing

SB3019 Enrolled - 1240 - LRB104 20255 HLH 33706 b
distributor, and manufacturer of alcoholic liquor as defined
in the Liquor Control Act of 1934, shall file a statement with
the Department of Revenue, no later than the 10th day of the
month for the preceding month during which transactions
occurred, by electronic means, showing the total amount of
gross receipts from the sale of alcoholic liquor sold or
distributed during the preceding month to purchasers;
identifying the purchaser to whom it was sold or distributed;
the purchaser's tax registration number; and such other
information reasonably required by the Department. A
distributor, importing distributor, or manufacturer of
alcoholic liquor must personally deliver, mail, or provide by
electronic means to each retailer listed on the monthly
statement a report containing a cumulative total of that
distributor's, importing distributor's, or manufacturer's
total sales of alcoholic liquor to that retailer no later than
the 10th day of the month for the preceding month during which
the transaction occurred. The distributor, importing
distributor, or manufacturer shall notify the retailer as to
the method by which the distributor, importing distributor, or
manufacturer will provide the sales information. If the
retailer is unable to receive the sales information by
electronic means, the distributor, importing distributor, or
manufacturer shall furnish the sales information by personal
delivery or by mail. For purposes of this paragraph, the term
"electronic means" includes, but is not limited to, the use of

SB3019 Enrolled - 1241 - LRB104 20255 HLH 33706 b
a secure Internet website, e-mail, or facsimile.
If a total amount of less than $1 is payable, refundable or
creditable, such amount shall be disregarded if it is less
than 50 cents and shall be increased to $1 if it is 50 cents or
more.
Notwithstanding any other provision of this Act to the
contrary, retailers subject to tax on cannabis shall file all
cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall
make all payments required by rules of the Department by
electronic funds transfer. Beginning October 1, 1995, a
taxpayer who has an average monthly tax liability of $50,000
or more shall make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1,
2000, a taxpayer who has an annual tax liability of $200,000 or
more shall make all payments required by rules of the
Department by electronic funds transfer. The term "annual tax
liability" shall be the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the

SB3019 Enrolled - 1242 - LRB104 20255 HLH 33706 b
immediately preceding calendar year. The term "average monthly
tax liability" shall be the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year divided by 12. Beginning
on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the
Department of Revenue Law shall make all payments required by
rules of the Department by electronic funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make
payments by electronic funds transfer. All taxpayers required
to make payments by electronic funds transfer shall make those
payments for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those
payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
Any amount which is required to be shown or reported on any
return or other document under this Act shall, if such amount

SB3019 Enrolled - 1243 - LRB104 20255 HLH 33706 b
is not a whole-dollar amount, be increased to the nearest
whole-dollar amount in any case where the fractional part of a
dollar is 50 cents or more, and decreased to the nearest
whole-dollar amount where the fractional part of a dollar is
less than 50 cents.
If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February, and March of a given
year being due by April 20 of such year; with the return for
April, May, and June of a given year being due by July 20 of
such year; with the return for July, August, and September of a
given year being due by October 20 of such year, and with the
return for October, November, and December of a given year
being due by January 20 of the following year.
If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
liability with the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January 20
of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act concerning

SB3019 Enrolled - 1244 - LRB104 20255 HLH 33706 b
the time within which a retailer may file his return, in the
case of any retailer who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such retailer shall file a final return under this Act with the
Department not more than one month after discontinuing such
business.
Where the same person has more than one business
registered with the Department under separate registrations
under this Act, such person may not file each return that is
due as a single return covering all such registered
businesses, but shall file separate returns for each such
registered business.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, except as otherwise provided in this
Section, every retailer selling this kind of tangible personal
property shall file, with the Department, upon a form to be
prescribed and supplied by the Department, a separate return
for each such item of tangible personal property which the
retailer sells, except that if, in the same transaction, (i) a
retailer of aircraft, watercraft, motor vehicles, or trailers
transfers more than one aircraft, watercraft, motor vehicle,
or trailer to another aircraft, watercraft, motor vehicle
retailer, or trailer retailer for the purpose of resale or
(ii) a retailer of aircraft, watercraft, motor vehicles, or
trailers transfers more than one aircraft, watercraft, motor

SB3019 Enrolled - 1245 - LRB104 20255 HLH 33706 b
vehicle, or trailer to a purchaser for use as a qualifying
rolling stock as provided in Section 2-5 of this Act, then that
seller may report the transfer of all aircraft, watercraft,
motor vehicles, or trailers involved in that transaction to
the Department on the same uniform invoice-transaction
reporting return form. For purposes of this Section,
"watercraft" means a Class 2, Class 3, or Class 4 watercraft as
defined in Section 3-2 of the Boat Registration and Safety
Act, a personal watercraft, or any boat equipped with an
inboard motor.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, every person who is engaged in the
business of leasing or renting such items and who, in
connection with such business, sells any such item to a
retailer for the purpose of resale is, notwithstanding any
other provision of this Section to the contrary, authorized to
meet the return-filing requirement of this Act by reporting
the transfer of all the aircraft, watercraft, motor vehicles,
or trailers transferred for resale during a month to the
Department on the same uniform invoice-transaction reporting
return form on or before the 20th of the month following the
month in which the transfer takes place. Notwithstanding any
other provision of this Act to the contrary, all returns filed
under this paragraph must be filed by electronic means in the
manner and form as required by the Department.

SB3019 Enrolled - 1246 - LRB104 20255 HLH 33706 b
Any retailer who sells only motor vehicles, watercraft,
aircraft, or trailers that are required to be registered with
an agency of this State, so that all retailers' occupation tax
liability is required to be reported, and is reported, on such
transaction reporting returns and who is not otherwise
required to file monthly or quarterly returns, need not file
monthly or quarterly returns. However, those retailers shall
be required to file returns on an annual basis.
The transaction reporting return, in the case of motor
vehicles or trailers that are required to be registered with
an agency of this State, shall be the same document as the
Uniform Invoice referred to in Section 5-402 of the Illinois
Vehicle Code and must show the name and address of the seller;
the name and address of the purchaser; the amount of the
selling price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 1 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling
price; the amount of tax due from the retailer with respect to
such transaction; the amount of tax collected from the
purchaser by the retailer on such transaction (or satisfactory
evidence that such tax is not due in that particular instance,
if that is claimed to be the fact); the place and date of the
sale; a sufficient identification of the property sold; such

SB3019 Enrolled - 1247 - LRB104 20255 HLH 33706 b
other information as is required in Section 5-402 of the
Illinois Vehicle Code, and such other information as the
Department may reasonably require.
The transaction reporting return in the case of watercraft
or aircraft must show the name and address of the seller; the
name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 1 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling
price; the amount of tax due from the retailer with respect to
such transaction; the amount of tax collected from the
purchaser by the retailer on such transaction (or satisfactory
evidence that such tax is not due in that particular instance,
if that is claimed to be the fact); the place and date of the
sale, a sufficient identification of the property sold, and
such other information as the Department may reasonably
require.
Such transaction reporting return shall be filed not later
than 20 days after the day of delivery of the item that is
being sold, but may be filed by the retailer at any time sooner
than that if he chooses to do so. The transaction reporting
return and tax remittance or proof of exemption from the
Illinois use tax may be transmitted to the Department by way of

SB3019 Enrolled - 1248 - LRB104 20255 HLH 33706 b
the State agency with which, or State officer with whom the
tangible personal property must be titled or registered (if
titling or registration is required) if the Department and
such agency or State officer determine that this procedure
will expedite the processing of applications for title or
registration.
With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the
Department shall issue, in the purchaser's name, a use tax
receipt (or a certificate of exemption if the Department is
satisfied that the particular sale is tax-exempt) which such
purchaser may submit to the agency with which, or State
officer with whom, he must title or register the tangible
personal property that is involved (if titling or registration
is required) in support of such purchaser's application for an
Illinois certificate or other evidence of title or
registration to such tangible personal property.
No retailer's failure or refusal to remit tax under this
Act precludes a user, who has paid the proper tax to the
retailer, from obtaining his certificate of title or other
evidence of title or registration (if titling or registration
is required) upon satisfying the Department that such user has
paid the proper tax (if tax is due) to the retailer. The
Department shall adopt appropriate rules to carry out the

SB3019 Enrolled - 1249 - LRB104 20255 HLH 33706 b
mandate of this paragraph.
If the user who would otherwise pay tax to the retailer
wants the transaction reporting return filed and the payment
of the tax or proof of exemption made to the Department before
the retailer is willing to take these actions and such user has
not paid the tax to the retailer, such user may certify to the
fact of such delay by the retailer and may (upon the Department
being satisfied of the truth of such certification) transmit
the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to
the Department and obtain his tax receipt or exemption
determination, in which event the transaction reporting return
and tax remittance (if a tax payment was required) shall be
credited by the Department to the proper retailer's account
with the Department, but without the vendor's discount
provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the
same amount and in the same form in which it would be remitted
if the tax had been remitted to the Department by the retailer.
On and after January 1, 2025, with respect to the lease of
trailers, other than semitrailers as defined in Section 1-187
of the Illinois Vehicle Code, that are required to be
registered with an agency of this State and that are subject to
the tax on lease receipts under this Act, notwithstanding any
other provision of this Act to the contrary, for the purpose of
reporting and paying tax under this Act on those lease

SB3019 Enrolled - 1250 - LRB104 20255 HLH 33706 b
receipts, lessors shall file returns in addition to and
separate from the transaction reporting return. Lessors shall
file those lease returns and make payment to the Department by
electronic means on or before the 20th day of each month
following the month, quarter, or year, as applicable, in which
lease receipts were received. All lease receipts received by
the lessor from the lease of those trailers during the same
reporting period shall be reported and tax shall be paid on a
single return form to be prescribed by the Department.
Refunds made by the seller during the preceding return
period to purchasers, on account of tangible personal property
returned to the seller, shall be allowed as a deduction under
subdivision 5 of his monthly or quarterly return, as the case
may be, in case the seller had theretofore included the
receipts from the sale of such tangible personal property in a
return filed by him and had paid the tax imposed by this Act
with respect to such receipts.
Where the seller is a corporation, the return filed on
behalf of such corporation shall be signed by the president,
vice-president, secretary, or treasurer or by the properly
accredited agent of such corporation.
Where the seller is a limited liability company, the
return filed on behalf of the limited liability company shall
be signed by a manager, member, or properly accredited agent
of the limited liability company.
Except as provided in this Section, the retailer filing

SB3019 Enrolled - 1251 - LRB104 20255 HLH 33706 b
the return under this Section shall, at the time of filing such
return, pay to the Department the amount of tax imposed by this
Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
on and after January 1, 1990, or $5 per calendar year,
whichever is greater, which is allowed to reimburse the
retailer for the expenses incurred in keeping records,
preparing and filing returns, remitting the tax and supplying
data to the Department on request. A certified service
provider, as defined in the Leveling the Playing Field for
Illinois Retail Act, filing the return under this Section on
behalf of a remote retailer or a retailer maintaining a place
of business in this State shall, at the time of such return,
pay to the Department the amount of tax imposed by this Act
less a discount of 1.75%. A remote retailer or a retailer
maintaining a place of business in this State using a
certified service provider to file a return on its behalf, as
provided in the Leveling the Playing Field for Illinois Retail
Act, is not eligible for the discount. Beginning with returns
due on or after January 1, 2025, the vendor's discount allowed
in this Section, the Service Occupation Tax Act, the Use Tax
Act, and the Service Use Tax Act, including any local tax
administered by the Department and reported on the same
return, shall not exceed $1,000 per month in the aggregate for
returns other than transaction returns filed during the month.
When determining the discount allowed under this Section,
retailers shall include the amount of tax that would have been

SB3019 Enrolled - 1252 - LRB104 20255 HLH 33706 b
due at the 1% rate but for the 0% rate imposed under Public Act
102-700. When determining the discount allowed under this
Section, retailers shall include the amount of tax that would
have been due at the 6.25% rate but for the 1.25% rate imposed
on sales tax holiday items under Public Act 102-700 and under
this amendatory Act of the 104th General Assembly. The
discount under this Section is not allowed for the 1.25%
portion of taxes paid on aviation fuel that is subject to the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133. Any prepayment made pursuant to Section 2d of this Act
shall be included in the amount on which such discount is
computed. In the case of retailers who report and pay the tax
on a transaction by transaction basis, as provided in this
Section, such discount shall be taken with each such tax
remittance instead of when such retailer files his periodic
return, but, beginning with returns due on or after January 1,
2025, the vendor's discount allowed under this Section and the
Use Tax Act, including any local tax administered by the
Department and reported on the same transaction return, shall
not exceed $1,000 per month for all transaction returns filed
during the month. The discount allowed under this Section is
allowed only for returns that are filed in the manner required
by this Act. The Department may disallow the discount for
retailers whose certificate of registration is revoked at the
time the return is filed, but only if the Department's
decision to revoke the certificate of registration has become

SB3019 Enrolled - 1253 - LRB104 20255 HLH 33706 b
final.
Before October 1, 2000, if the taxpayer's average monthly
tax liability to the Department under this Act, the Use Tax
Act, the Service Occupation Tax Act, and the Service Use Tax
Act, excluding any liability for prepaid sales tax to be
remitted in accordance with Section 2d of this Act, was
$10,000 or more during the preceding 4 complete calendar
quarters, he shall file a return with the Department each
month by the 20th day of the month next following the month
during which such tax liability is incurred and shall make
payments to the Department on or before the 7th, 15th, 22nd and
last day of the month during which such liability is incurred.
On and after October 1, 2000, if the taxpayer's average
monthly tax liability to the Department under this Act, the
Use Tax Act, the Service Occupation Tax Act, and the Service
Use Tax Act, excluding any liability for prepaid sales tax to
be remitted in accordance with Section 2d of this Act, was
$20,000 or more during the preceding 4 complete calendar
quarters, he shall file a return with the Department each
month by the 20th day of the month next following the month
during which such tax liability is incurred and shall make
payment to the Department on or before the 7th, 15th, 22nd and
last day of the month during which such liability is incurred.
If the month during which such tax liability is incurred began
prior to January 1, 1985, each payment shall be in an amount
equal to 1/4 of the taxpayer's actual liability for the month

SB3019 Enrolled - 1254 - LRB104 20255 HLH 33706 b
or an amount set by the Department not to exceed 1/4 of the
average monthly liability of the taxpayer to the Department
for the preceding 4 complete calendar quarters (excluding the
month of highest liability and the month of lowest liability
in such 4 quarter period). If the month during which such tax
liability is incurred begins on or after January 1, 1985 and
prior to January 1, 1987, each payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the
month or 27.5% of the taxpayer's liability for the same
calendar month of the preceding year. If the month during
which such tax liability is incurred begins on or after
January 1, 1987 and prior to January 1, 1988, each payment
shall be in an amount equal to 22.5% of the taxpayer's actual
liability for the month or 26.25% of the taxpayer's liability
for the same calendar month of the preceding year. If the month
during which such tax liability is incurred begins on or after
January 1, 1988, and prior to January 1, 1989, or begins on or
after January 1, 1996, each payment shall be in an amount equal
to 22.5% of the taxpayer's actual liability for the month or
25% of the taxpayer's liability for the same calendar month of
the preceding year. If the month during which such tax
liability is incurred begins on or after January 1, 1989, and
prior to January 1, 1996, each payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the
month or 25% of the taxpayer's liability for the same calendar
month of the preceding year or 100% of the taxpayer's actual

SB3019 Enrolled - 1255 - LRB104 20255 HLH 33706 b
liability for the quarter monthly reporting period. The amount
of such quarter monthly payments shall be credited against the
final tax liability of the taxpayer's return for that month.
Before October 1, 2000, once applicable, the requirement of
the making of quarter monthly payments to the Department by
taxpayers having an average monthly tax liability of $10,000
or more as determined in the manner provided above shall
continue until such taxpayer's average monthly liability to
the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the
month of lowest liability) is less than $9,000, or until such
taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $10,000. However, if a
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $10,000
threshold stated above, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status.
On and after October 1, 2000, once applicable, the requirement
of the making of quarter monthly payments to the Department by
taxpayers having an average monthly tax liability of $20,000
or more as determined in the manner provided above shall
continue until such taxpayer's average monthly liability to
the Department during the preceding 4 complete calendar

SB3019 Enrolled - 1256 - LRB104 20255 HLH 33706 b
quarters (excluding the month of highest liability and the
month of lowest liability) is less than $19,000 or until such
taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $20,000. However, if a
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $20,000
threshold stated above, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status.
The Department shall change such taxpayer's reporting status
unless it finds that such change is seasonal in nature and not
likely to be long term. Quarter monthly payment status shall
be determined under this paragraph as if the rate reduction to
0% in Public Act 102-700 on food for human consumption that is
to be consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption) had not occurred. For quarter monthly
payments due under this paragraph on or after July 1, 2023 and
through June 30, 2024, "25% of the taxpayer's liability for
the same calendar month of the preceding year" shall be
determined as if the rate reduction to 0% in Public Act 102-700
had not occurred. Quarter monthly payment status shall be
determined under this paragraph as if the rate reduction to

SB3019 Enrolled - 1257 - LRB104 20255 HLH 33706 b
1.25% in Public Act 102-700 and in this amendatory Act of the
104th General Assembly on sales tax holiday items had not
occurred. For quarter monthly payments due on or after July 1,
2023 and through June 30, 2024, and on or after July 1, 2027
and through June 30, 2028, "25% of the taxpayer's liability
for the same calendar month of the preceding year" shall be
determined as if the rate reduction to 1.25% in Public Act
102-700 and in this amendatory Act of the 104th General
Assembly on sales tax holiday items had not occurred. If any
such quarter monthly payment is not paid at the time or in the
amount required by this Section, then the taxpayer shall be
liable for penalties and interest on the difference between
the minimum amount due as a payment and the amount of such
quarter monthly payment actually and timely paid, except
insofar as the taxpayer has previously made payments for that
month to the Department in excess of the minimum payments
previously due as provided in this Section. The Department
shall make reasonable rules and regulations to govern the
quarter monthly payment amount and quarter monthly payment
dates for taxpayers who file on other than a calendar monthly
basis.
The provisions of this paragraph apply before October 1,
2001. Without regard to whether a taxpayer is required to make
quarter monthly payments as specified above, any taxpayer who
is required by Section 2d of this Act to collect and remit
prepaid taxes and has collected prepaid taxes which average in

SB3019 Enrolled - 1258 - LRB104 20255 HLH 33706 b
excess of $25,000 per month during the preceding 2 complete
calendar quarters, shall file a return with the Department as
required by Section 2f and shall make payments to the
Department on or before the 7th, 15th, 22nd and last day of the
month during which such liability is incurred. If the month
during which such tax liability is incurred began prior to
September 1, 1985 (the effective date of Public Act 84-221),
each payment shall be in an amount not less than 22.5% of the
taxpayer's actual liability under Section 2d. If the month
during which such tax liability is incurred begins on or after
January 1, 1986, each payment shall be in an amount equal to
22.5% of the taxpayer's actual liability for the month or
27.5% of the taxpayer's liability for the same calendar month
of the preceding calendar year. If the month during which such
tax liability is incurred begins on or after January 1, 1987,
each payment shall be in an amount equal to 22.5% of the
taxpayer's actual liability for the month or 26.25% of the
taxpayer's liability for the same calendar month of the
preceding year. The amount of such quarter monthly payments
shall be credited against the final tax liability of the
taxpayer's return for that month filed under this Section or
Section 2f, as the case may be. Once applicable, the
requirement of the making of quarter monthly payments to the
Department pursuant to this paragraph shall continue until
such taxpayer's average monthly prepaid tax collections during
the preceding 2 complete calendar quarters is $25,000 or less.

SB3019 Enrolled - 1259 - LRB104 20255 HLH 33706 b
If any such quarter monthly payment is not paid at the time or
in the amount required, the taxpayer shall be liable for
penalties and interest on such difference, except insofar as
the taxpayer has previously made payments for that month in
excess of the minimum payments previously due.
The provisions of this paragraph apply on and after
October 1, 2001. Without regard to whether a taxpayer is
required to make quarter monthly payments as specified above,
any taxpayer who is required by Section 2d of this Act to
collect and remit prepaid taxes and has collected prepaid
taxes that average in excess of $20,000 per month during the
preceding 4 complete calendar quarters shall file a return
with the Department as required by Section 2f and shall make
payments to the Department on or before the 7th, 15th, 22nd,
and last day of the month during which the liability is
incurred. Each payment shall be in an amount equal to 22.5% of
the taxpayer's actual liability for the month or 25% of the
taxpayer's liability for the same calendar month of the
preceding year. The amount of the quarter monthly payments
shall be credited against the final tax liability of the
taxpayer's return for that month filed under this Section or
Section 2f, as the case may be. Once applicable, the
requirement of the making of quarter monthly payments to the
Department pursuant to this paragraph shall continue until the
taxpayer's average monthly prepaid tax collections during the
preceding 4 complete calendar quarters (excluding the month of

SB3019 Enrolled - 1260 - LRB104 20255 HLH 33706 b
highest liability and the month of lowest liability) is less
than $19,000 or until such taxpayer's average monthly
liability to the Department as computed for each calendar
quarter of the 4 preceding complete calendar quarters is less
than $20,000. If any such quarter monthly payment is not paid
at the time or in the amount required, the taxpayer shall be
liable for penalties and interest on such difference, except
insofar as the taxpayer has previously made payments for that
month in excess of the minimum payments previously due.
If any payment provided for in this Section exceeds the
taxpayer's liabilities under this Act, the Use Tax Act, the
Service Occupation Tax Act, and the Service Use Tax Act, as
shown on an original monthly return, the Department shall, if
requested by the taxpayer, issue to the taxpayer a credit
memorandum no later than 30 days after the date of payment. The
credit evidenced by such credit memorandum may be assigned by
the taxpayer to a similar taxpayer under this Act, the Use Tax
Act, the Service Occupation Tax Act, or the Service Use Tax
Act, in accordance with reasonable rules and regulations to be
prescribed by the Department. If no such request is made, the
taxpayer may credit such excess payment against tax liability
subsequently to be remitted to the Department under this Act,
the Use Tax Act, the Service Occupation Tax Act, or the Service
Use Tax Act, in accordance with reasonable rules and
regulations prescribed by the Department. If the Department
subsequently determined that all or any part of the credit

SB3019 Enrolled - 1261 - LRB104 20255 HLH 33706 b
taken was not actually due to the taxpayer, the taxpayer's
vendor's discount shall be reduced, if necessary, to reflect
the difference between the credit taken and that actually due,
and that taxpayer shall be liable for penalties and interest
on such difference.
If a retailer of motor fuel is entitled to a credit under
Section 2d of this Act which exceeds the taxpayer's liability
to the Department under this Act for the month for which the
taxpayer is filing a return, the Department shall issue the
taxpayer a credit memorandum for the excess.
The net revenue realized at the 15% rate under either
Section 4 or Section 5 of this Act shall be deposited as
follows: (i) notwithstanding the provisions of this Section to
the contrary, the net revenue realized from the portion of the
rate in excess of 5% shall be deposited into the State and
Local Sales Tax Reform Fund; and (ii) the net revenue realized
from the 5% portion of the rate shall be deposited as provided
in this Section for the 5% portion of the 6.25% general rate
imposed under this Act.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund, a special fund in the
State treasury which is hereby created, the net revenue
realized for the preceding month from the 1% tax imposed under
this Act.
Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund, a special

SB3019 Enrolled - 1262 - LRB104 20255 HLH 33706 b
fund in the State treasury which is hereby created, 4% of the
net revenue realized for the preceding month from the 6.25%
general rate other than aviation fuel sold on or after
December 1, 2019. This exception for aviation fuel only
applies for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the County and Mass Transit District Fund 20% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol. If, in any
month, the tax on sales tax holiday items, as defined in
Section 2-8, is imposed at the rate of 1.25%, then the
Department shall pay 20% of the net revenue realized for that
month from the 1.25% rate on the selling price of sales tax
holiday items into the County and Mass Transit District Fund.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the net revenue
realized for the preceding month from the 6.25% general rate
on the selling price of tangible personal property other than
aviation fuel sold on or after December 1, 2019. This
exception for aviation fuel only applies for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the net revenue realized for the preceding month

SB3019 Enrolled - 1263 - LRB104 20255 HLH 33706 b
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be
required for refunds of the 20% portion of the tax on aviation
fuel under this Act, which amount shall be deposited into the
Aviation Fuel Sales Tax Refund Fund. The Department shall only
pay moneys into the State Aviation Program Fund and the
Aviation Fuel Sales Tax Refund Fund under this Act for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the Local Government Tax Fund 80% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of motor fuel and gasohol. If, in any month, the
tax on sales tax holiday items, as defined in Section 2-8, is
imposed at the rate of 1.25%, then the Department shall pay 80%
of the net revenue realized for that month from the 1.25% rate
on the selling price of sales tax holiday items into the Local
Government Tax Fund.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2011, each month the Department shall

SB3019 Enrolled - 1264 - LRB104 20255 HLH 33706 b
pay into the Clean Air Act Permit Fund 80% of the net revenue
realized for the preceding month from the 6.25% general rate
on the selling price of sorbents used in Illinois in the
process of sorbent injection as used to comply with the
Environmental Protection Act or the federal Clean Air Act, but
the total payment into the Clean Air Act Permit Fund under this
Act and the Use Tax Act shall not exceed $2,000,000 in any
fiscal year.
Beginning July 1, 2013, each month the Department shall
pay into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service Use Tax
Act, and the Service Occupation Tax Act an amount equal to the
average monthly deficit in the Underground Storage Tank Fund
during the prior year, as certified annually by the Illinois
Environmental Protection Agency, but the total payment into
the Underground Storage Tank Fund under this Act, the Use Tax
Act, the Service Use Tax Act, and the Service Occupation Tax
Act shall not exceed $18,000,000 in any State fiscal year. As
used in this paragraph, the "average monthly deficit" shall be
equal to the difference between the average monthly claims for
payment by the fund and the average monthly revenues deposited
into the fund, excluding payments made pursuant to this
paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, the Service
Use Tax Act, the Service Occupation Tax Act, and this Act, each

SB3019 Enrolled - 1265 - LRB104 20255 HLH 33706 b
month the Department shall deposit $500,000 into the State
Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to this Act,
Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
Act, and Section 9 of the Service Occupation Tax Act, such Acts
being hereinafter called the "Tax Acts" and such aggregate of
2.2% or 3.8%, as the case may be, of moneys being hereinafter
called the "Tax Act Amount", and (2) the amount transferred to
the Build Illinois Fund from the State and Local Sales Tax
Reform Fund shall be less than the Annual Specified Amount (as
hereinafter defined), an amount equal to the difference shall
be immediately paid into the Build Illinois Fund from other
moneys received by the Department pursuant to the Tax Acts;
the "Annual Specified Amount" means the amounts specified
below for fiscal years 1986 through 1993:
Fiscal Year Annual Specified Amount
1986 $54,800,000
1987 $76,650,000
1988 $80,480,000

SB3019 Enrolled - 1266 - LRB104 20255 HLH 33706 b
1989 $88,510,000
1990 $115,330,000
1991 $145,470,000
1992 $182,730,000
1993 $206,520,000;
and means the Certified Annual Debt Service Requirement (as
defined in Section 13 of the Build Illinois Bond Act) or the
Tax Act Amount, whichever is greater, for fiscal year 1994 and
each fiscal year thereafter; and further provided, that if on
the last business day of any month the sum of (1) the Tax Act
Amount required to be deposited into the Build Illinois Bond
Account in the Build Illinois Fund during such month and (2)
the amount transferred to the Build Illinois Fund from the
State and Local Sales Tax Reform Fund shall have been less than
1/12 of the Annual Specified Amount, an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and, further provided, that in no event shall the
payments required under the preceding proviso result in
aggregate payments into the Build Illinois Fund pursuant to
this clause (b) for any fiscal year in excess of the greater of
(i) the Tax Act Amount or (ii) the Annual Specified Amount for
such fiscal year. The amounts payable into the Build Illinois
Fund under clause (b) of the first sentence in this paragraph
shall be payable only until such time as the aggregate amount
on deposit under each trust indenture securing Bonds issued

SB3019 Enrolled - 1267 - LRB104 20255 HLH 33706 b
and outstanding pursuant to the Build Illinois Bond Act is
sufficient, taking into account any future investment income,
to fully provide, in accordance with such indenture, for the
defeasance of or the payment of the principal of, premium, if
any, and interest on the Bonds secured by such indenture and on
any Bonds expected to be issued thereafter and all fees and
costs payable with respect thereto, all as certified by the
Director of the Bureau of the Budget (now Governor's Office of
Management and Budget). If on the last business day of any
month in which Bonds are outstanding pursuant to the Build
Illinois Bond Act, the aggregate of moneys deposited into the
Build Illinois Bond Account in the Build Illinois Fund in such
month shall be less than the amount required to be transferred
in such month from the Build Illinois Bond Account to the Build
Illinois Bond Retirement and Interest Fund pursuant to Section
13 of the Build Illinois Bond Act, an amount equal to such
deficiency shall be immediately paid from other moneys
received by the Department pursuant to the Tax Acts to the
Build Illinois Fund; provided, however, that any amounts paid
to the Build Illinois Fund in any fiscal year pursuant to this
sentence shall be deemed to constitute payments pursuant to
clause (b) of the first sentence of this paragraph and shall
reduce the amount otherwise payable for such fiscal year
pursuant to that clause (b). The moneys received by the
Department pursuant to this Act and required to be deposited
into the Build Illinois Fund are subject to the pledge, claim

SB3019 Enrolled - 1268 - LRB104 20255 HLH 33706 b
and charge set forth in Section 12 of the Build Illinois Bond
Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000

SB3019 Enrolled - 1269 - LRB104 20255 HLH 33706 b
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 300,000,000
2022 300,000,000
2023 300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000

SB3019 Enrolled - 1270 - LRB104 20255 HLH 33706 b
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034 375,000,000
2035 375,000,000
2036 450,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but

SB3019 Enrolled - 1271 - LRB104 20255 HLH 33706 b
not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, for aviation fuel sold on or after December 1, 2019,
the Department shall each month deposit into the Aviation Fuel
Sales Tax Refund Fund an amount estimated by the Department to
be required for refunds of the 80% portion of the tax on
aviation fuel under this Act. The Department shall only
deposit moneys into the Aviation Fuel Sales Tax Refund Fund
under this paragraph for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois
Tax Increment Fund 0.27% of 80% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, and the
Illinois Tax Increment Fund pursuant to the preceding

SB3019 Enrolled - 1272 - LRB104 20255 HLH 33706 b
paragraphs or in any amendments to this Section hereafter
enacted, beginning on the first day of the first calendar
month to occur on or after August 26, 2014 (the effective date
of Public Act 98-1098), each month, from the collections made
under Section 9 of the Use Tax Act, Section 9 of the Service
Use Tax Act, Section 9 of the Service Occupation Tax Act, and
Section 3 of the Retailers' Occupation Tax Act, the Department
shall pay into the Tax Compliance and Administration Fund, to
be used, subject to appropriation, to fund additional auditors
and compliance personnel at the Department of Revenue, an
amount equal to 1/12 of 5% of 80% of the cash receipts
collected during the preceding fiscal year by the Audit Bureau
of the Department under the Use Tax Act, the Service Use Tax
Act, the Service Occupation Tax Act, the Retailers' Occupation
Tax Act, and associated local occupation and use taxes
administered by the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, the Energy Infrastructure Fund, and the
Tax Compliance and Administration Fund as provided in this
Section, beginning on July 1, 2018 the Department shall pay
each month into the Downstate Public Transportation Fund the
moneys required to be so paid under Section 2-3 of the
Downstate Public Transportation Act.
Subject to successful execution and delivery of a
public-private agreement between the public agency and private

SB3019 Enrolled - 1273 - LRB104 20255 HLH 33706 b
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year.............................Total Deposit
2024.....................................$200,000,000
2025....................................$206,000,000
2026....................................$212,200,000
2027....................................$218,500,000
2028....................................$225,100,000
2029....................................$288,700,000

SB3019 Enrolled - 1274 - LRB104 20255 HLH 33706 b
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000
2034....................................$341,200,000
2035....................................$351,400,000
2036....................................$361,900,000
2037....................................$372,800,000
2038....................................$384,000,000
2039....................................$395,500,000
2040....................................$407,400,000
2041....................................$419,600,000
2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the County and Mass Transit
District Fund, the Local Government Tax Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 16% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning July 1,
2022 and until July 1, 2023, subject to the payment of amounts
into the County and Mass Transit District Fund, the Local
Government Tax Fund, the Build Illinois Fund, the McCormick

SB3019 Enrolled - 1275 - LRB104 20255 HLH 33706 b
Place Expansion Project Fund, the Illinois Tax Increment Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 32% of the net
revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning July 1, 2023 and until July 1, 2024,
subject to the payment of amounts into the County and Mass
Transit District Fund, the Local Government Tax Fund, the
Build Illinois Fund, the McCormick Place Expansion Project
Fund, the Illinois Tax Increment Fund, and the Tax Compliance
and Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 48% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning July 1,
2024 and until July 1, 2026, subject to the payment of amounts
into the County and Mass Transit District Fund, the Local
Government Tax Fund, the Build Illinois Fund, the McCormick
Place Expansion Project Fund, the Illinois Tax Increment Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 64% of the net
revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning on July 1, 2026, subject to the payment of
amounts into the County and Mass Transit District Fund, the
Local Government Tax Fund, the Build Illinois Fund, the
McCormick Place Expansion Project Fund, the Illinois Tax

SB3019 Enrolled - 1276 - LRB104 20255 HLH 33706 b
Increment Fund, and the Tax Compliance and Administration Fund
as provided in this Section, the Department shall pay each
month into the Public Transportation Fund and the Downstate
Public Transportation Fund the amount estimated to represent
80% of the net revenue realized from the taxes imposed on motor
fuel and gasohol. Moneys shall be apportioned as follows: 85%
into the Public Transportation Fund and 15% into the Downstate
Public Transportation Fund. As used in this paragraph "motor
fuel" has the meaning given to that term in Section 1.1 of the
Motor Fuel Tax Law, and "gasohol" has the meaning given to that
term in Section 3-40 of the Use Tax Act.
Until July 1, 2025, of the remainder of the moneys
received by the Department pursuant to this Act, 75% thereof
shall be paid into the State treasury and 25% shall be reserved
in a special account and used only for the transfer to the
Common School Fund as part of the monthly transfer from the
General Revenue Fund in accordance with Section 8a of the
State Finance Act. Beginning July 1, 2025, of the remainder of
the moneys received by the Department pursuant to this Act,
75% shall be deposited into the General Revenue Fund and 25%
shall be deposited into the Common School Fund.
The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.

SB3019 Enrolled - 1277 - LRB104 20255 HLH 33706 b
Such annual return to the Department shall include a statement
of gross receipts as shown by the retailer's last federal
income tax return. If the total receipts of the business as
reported in the federal income tax return do not agree with the
gross receipts reported to the Department of Revenue for the
same period, the retailer shall attach to his annual return a
schedule showing a reconciliation of the 2 amounts and the
reasons for the difference. The retailer's annual return to
the Department shall also disclose the cost of goods sold by
the retailer during the year covered by such return, opening
and closing inventories of such goods for such year, costs of
goods used from stock or taken from stock and given away by the
retailer during such year, payroll information of the
retailer's business during such year and any additional
reasonable information which the Department deems would be
helpful in determining the accuracy of the monthly, quarterly,
or annual returns filed by such retailer as provided for in
this Section.
If the annual information return required by this Section
is not filed when and as required, the taxpayer shall be liable
as follows:
(i) Until January 1, 1994, the taxpayer shall be
liable for a penalty equal to 1/6 of 1% of the tax due from
such taxpayer under this Act during the period to be
covered by the annual return for each month or fraction of
a month until such return is filed as required, the

SB3019 Enrolled - 1278 - LRB104 20255 HLH 33706 b
penalty to be assessed and collected in the same manner as
any other penalty provided for in this Act.
(ii) On and after January 1, 1994, the taxpayer shall
be liable for a penalty as described in Section 3-4 of the
Uniform Penalty and Interest Act.
The chief executive officer, proprietor, owner, or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person who
willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and punished
accordingly. The annual return form prescribed by the
Department shall include a warning that the person signing the
return may be liable for perjury.
The provisions of this Section concerning the filing of an
annual information return do not apply to a retailer who is not
required to file an income tax return with the United States
Government.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount

SB3019 Enrolled - 1279 - LRB104 20255 HLH 33706 b
paid out during that month as refunds to taxpayers for
overpayment of liability.
For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to
such sales, if the retailers who are affected do not make
written objection to the Department to this arrangement.
Any person who promotes, organizes, or provides retail
selling space for concessionaires or other types of sellers at
the Illinois State Fair, DuQuoin State Fair, county fairs,
local fairs, art shows, flea markets, and similar exhibitions
or events, including any transient merchant as defined by
Section 2 of the Transient Merchant Act of 1987, is required to
file a report with the Department providing the name of the
merchant's business, the name of the person or persons engaged
in merchant's business, the permanent address and Illinois
Retailers Occupation Tax Registration Number of the merchant,
the dates and location of the event, and other reasonable
information that the Department may require. The report must
be filed not later than the 20th day of the month next
following the month during which the event with retail sales
was held. Any person who fails to file a report required by
this Section commits a business offense and is subject to a
fine not to exceed $250.

SB3019 Enrolled - 1280 - LRB104 20255 HLH 33706 b
Any person engaged in the business of selling tangible
personal property at retail as a concessionaire or other type
of seller at the Illinois State Fair, county fairs, art shows,
flea markets, and similar exhibitions or events, or any
transient merchants, as defined by Section 2 of the Transient
Merchant Act of 1987, may be required to make a daily report of
the amount of such sales to the Department and to make a daily
payment of the full amount of tax due. The Department shall
impose this requirement when it finds that there is a
significant risk of loss of revenue to the State at such an
exhibition or event. Such a finding shall be based on evidence
that a substantial number of concessionaires or other sellers
who are not residents of Illinois will be engaging in the
business of selling tangible personal property at retail at
the exhibition or event, or other evidence of a significant
risk of loss of revenue to the State. The Department shall
notify concessionaires and other sellers affected by the
imposition of this requirement. In the absence of notification
by the Department, the concessionaires and other sellers shall
file their returns as otherwise required in this Section.
(Source: P.A. 103-9, eff. 6-7-23; 103-154, eff. 6-30-23;
103-363, eff. 7-28-23; 103-592, Article 75, Section 75-20,
eff. 1-1-25; 103-592, Article 110, Section 110-20, eff.
6-7-24; 103-605, eff. 7-1-24; 103-1055, eff. 12-20-24; 104-6,
Article 5, Section 5-25, eff. 6-16-25; 104-6, Article 25,
Section 25-20, eff. 6-16-25; 104-6, Article 35, Section 35-35,

SB3019 Enrolled - 1281 - LRB104 20255 HLH 33706 b
eff. 6-16-25; 104-457, eff. 6-1-26.)
ARTICLE 130
Section 130-5. The Sports Wagering Act is amended by
changing Sections 25-10 and 25-90 as follows:
(230 ILCS 45/25-10)
Sec. 25-10. Definitions. As used in this Act:
"Adjusted gross sports wagering receipts" means a master
sports wagering licensee's gross sports wagering receipts,
less winnings paid to wagerers in such games.
"Athlete" means any current or former professional athlete
or collegiate athlete.
"Board" means the Illinois Gaming Board.
"Covered persons" includes athletes; umpires, referees,
and officials; personnel associated with clubs, teams,
leagues, and athletic associations; medical professionals
(including athletic trainers) who provide services to athletes
and players; and the family members and associates of these
persons where required to serve the purposes of this Act.
"Exchange wager" includes an agreement, contract,
transaction, or swap that is offered, traded, or executed on a
prediction market or exchange tied to a sporting contest or
sporting event.
"Department" means the Department of the Lottery.

SB3019 Enrolled - 1282 - LRB104 20255 HLH 33706 b
"Gaming facility" means a facility at which gambling
operations are conducted under the Illinois Gambling Act,
pari-mutuel wagering is conducted under the Illinois Horse
Racing Act of 1975, or sports wagering is conducted under this
Act.
"Official league data" means statistics, results,
outcomes, and other data related to a sports event obtained
pursuant to an agreement with the relevant sports governing
body, or an entity expressly authorized by the sports
governing body to provide such information to licensees, that
authorizes the use of such data for determining the outcome of
tier 2 sports wagers on such sports events.
"Organization licensee" has the meaning given to that term
in the Illinois Horse Racing Act of 1975.
"Owners licensee" means the holder of an owners license
under the Illinois Gambling Act.
"Person" means an individual, partnership, committee,
association, corporation, or any other organization or group
of persons.
"Personal biometric data" means an athlete's information
derived from DNA, heart rate, blood pressure, perspiration
rate, internal or external body temperature, hormone levels,
glucose levels, hydration levels, vitamin levels, bone
density, muscle density, and sleep patterns.
"Prohibited conduct" includes any statement, action, and
other communication intended to influence, manipulate, or

SB3019 Enrolled - 1283 - LRB104 20255 HLH 33706 b
control a betting outcome of a sporting contest or of any
individual occurrence or performance in a sporting contest in
exchange for financial gain or to avoid financial or physical
harm. "Prohibited conduct" includes statements, actions, and
communications made to a covered person by a third party, such
as a family member or through social media. "Prohibited
conduct" does not include statements, actions, or
communications made or sanctioned by a team or sports
governing body.
"Qualified applicant" means an applicant for a license
under this Act whose application meets the mandatory minimum
qualification criteria as required by the Board.
"Sporting contest" means a sports event or game on which
the State allows sports wagering to occur under this Act.
"Sports event" means a professional sport or athletic
event, a collegiate sport or athletic event, a motor race
event, or any other event or competition of relative skill
authorized by the Board under this Act.
"Sports facility" means a facility that hosts sports
events and holds a seating capacity greater than 17,000
persons, except in a municipality with a population of more
than 1,000,000, a seating capacity greater than 10,000
persons.
"Sports governing body" means the organization that
prescribes final rules and enforces codes of conduct with
respect to a sports event and participants therein.

SB3019 Enrolled - 1284 - LRB104 20255 HLH 33706 b
"Sports wagering" means accepting wagers on sports events
or portions of sports events, or on the individual performance
statistics of athletes in a sports event or combination of
sports events, by any system or method of wagering, including,
but not limited to, in person or over the Internet through
websites and on mobile devices. "Sports wagering" includes,
but is not limited to, single-game bets, teaser bets, parlays,
over-under, moneyline, pools, exchange wagering, in-game
wagering, in-play bets, proposition bets, and straight bets.
"Sports wagering account" means a financial record
established by a master sports wagering licensee for an
individual patron in which the patron may deposit and withdraw
funds for sports wagering and other authorized purchases and
to which the master sports wagering licensee may credit
winnings or other amounts due to that patron or authorized by
that patron.
"Tier 1 sports wager" means a sports wager that is
determined solely by the final score or final outcome of the
sports event and is placed before the sports event has begun.
"Tier 2 sports wager" means a sports wager that is not a
tier 1 sports wager.
"Wager" means a sum of money or thing of value risked on an
uncertain occurrence.
"Winning bidder" means a qualified applicant for a master
sports wagering license chosen through the competitive
selection process under Section 25-45.

SB3019 Enrolled - 1285 - LRB104 20255 HLH 33706 b
(Source: P.A. 101-31, eff. 6-28-19; 102-689, eff. 12-17-21.)
(230 ILCS 45/25-90)
Sec. 25-90. Tax; Sports Wagering Fund.
(a) For the privilege of holding a license to operate
sports wagering under this Act until June 30, 2024, this State
shall impose and collect 15% of a master sports wagering
licensee's adjusted gross sports wagering receipts from sports
wagering. The accrual method of accounting shall be used for
purposes of calculating the amount of the tax owed by the
licensee.
The taxes levied and collected pursuant to this subsection
(a) are due and payable to the Board no later than the last day
of the month following the calendar month in which the
adjusted gross sports wagering receipts were received and the
tax obligation was accrued.
(a-5) In addition to the tax imposed under subsection (a),
(d), (d-5), or (d-7) of this Section, for the privilege of
holding a license to operate sports wagering under this Act,
the State shall impose and collect 2% of the adjusted gross
receipts from sports wagers that are placed within a home rule
county with a population of over 3,000,000 inhabitants, which
shall be paid, subject to appropriation from the General
Assembly, from the Sports Wagering Fund to that home rule
county for the purpose of enhancing the county's criminal
justice system.

SB3019 Enrolled - 1286 - LRB104 20255 HLH 33706 b
(b) The Sports Wagering Fund is hereby created as a
special fund in the State treasury. Except as otherwise
provided in this Act, all moneys collected under this Act by
the Board shall be deposited into the Sports Wagering Fund.
Through August 25, 2024, on the 25th of each month, any moneys
remaining in the Sports Wagering Fund in excess of the
anticipated monthly expenditures from the Fund through the
next month, as certified by the Board to the State
Comptroller, shall be transferred by the State Comptroller and
the State Treasurer to the Capital Projects Fund. Beginning
September 25, 2024, on the 25th of each month, of the moneys
remaining in the Sports Wagering Fund in excess of the
anticipated monthly expenditures from the Fund through the
next month, as certified by the Board to the State
Comptroller, the State Comptroller shall direct and the State
Treasurer shall transfer 58% to the General Revenue Fund and
42% to the Capital Projects Fund.
(c) Beginning with July 2021, and on a monthly basis
thereafter, the Board shall certify to the State Comptroller
the amount of license fees collected in the month for initial
licenses issued under this Act, except for occupational
licenses. As soon after certification as practicable, the
State Comptroller shall direct and the State Treasurer shall
transfer the certified amount from the Sports Wagering Fund to
the Rebuild Illinois Projects Fund.
(d) Beginning on July 1, 2024, and for each 12-month

SB3019 Enrolled - 1287 - LRB104 20255 HLH 33706 b
period thereafter, for the privilege of holding a license to
operate sports wagering under this Act, this State shall
impose a privilege tax on the master sports licensee's
adjusted gross sports wagering receipts from sports wagering
over the Internet or through a mobile application based on the
following rates:
20% of annual adjusted gross sports wagering receipts
up to and including $30,000,000.
25% of annual adjusted gross sports wagering receipts
in excess of $30,000,000 but not exceeding $50,000,000.
30% of annual adjusted gross sports wagering receipts
in excess of $50,000,000 but not exceeding $100,000,000.
35% of annual adjusted gross sports wagering receipts
in excess of $100,000,000 but not exceeding $200,000,000.
40% of annual adjusted gross sports wagering receipts
in excess of $200,000,000.
(d-5) Beginning on July 1, 2024, and for each 12-month
period thereafter, for the privilege of holding a license to
operate sports wagering under this Act, this State shall
impose a privilege tax on the master sports licensee's
adjusted gross sports wagering receipts from sports wagering
from other than over the Internet or through a mobile
application based on the following rates:
20% of annual adjusted gross sports wagering receipts
up to and including $30,000,000.
25% of annual adjusted gross sports wagering receipts

SB3019 Enrolled - 1288 - LRB104 20255 HLH 33706 b
in excess of $30,000,000 but not exceeding $50,000,000.
30% of annual adjusted gross sports wagering receipts
in excess of $50,000,000 but not exceeding $100,000,000.
35% of annual adjusted gross sports wagering receipts
in excess of $100,000,000 but not exceeding $200,000,000.
40% of annual adjusted gross sports wagering receipts
in excess of $200,000,000.
(d-7) Beginning on July 1, 2025, and each month
thereafter, for the privilege of holding a license to operate
sports wagering under this Act, this State shall impose a
wager tax on each master sports licensee for each individual
wager placed with the master sports licensee for sports
wagering over the Internet or through a mobile application.
The tax shall be based on the following schedule and shall be
in addition to any other taxes or fees imposed under this Act:
The tax shall be $0.25 per wager for the first 20,000,000
annual combined Tier 1 and Tier 2 wagers.
The tax shall be $0.50 per wager for each wager in excess
of 20,000,000 annual combined Tier 1 and Tier 2 wagers.
The tax levied under this subsection shall be deposited
monthly into the Sports Wagering Fund. The Board shall certify
all amounts deposited into the Sports Wagering Fund under this
subsection to the State Comptroller. The State Comptroller
shall direct and the State Treasurer shall transfer that
certified amount from the Sports Wagering Fund to the General
Revenue Fund.

SB3019 Enrolled - 1289 - LRB104 20255 HLH 33706 b
As used in this subsection, "annual combined Tier 1 and
Tier 2 wagers" means the total number of individual wagers
placed with the licensee, regardless of outcome or payout in a
given fiscal year.
(d-10) The accrual method of accounting shall be used for
purposes of calculating the amount of the tax owed by the
licensee.
(d-15) The taxes levied and collected pursuant to
subsections (d) (d-5), and (d-7) are due and payable to the
Board no later than the last day of the month following the
calendar month in which the adjusted gross sports wagering
receipts were received and the tax obligation was accrued.
(d-20) In addition to all other taxes and payments owed
under this Act, any wagers offered under this Act shall be
subject to incur a transaction tax equal to the 1.75% of each
exchange wager. After the first five million exchange wagers
conducted by a licensee during a fiscal year, the transaction
tax imposed under this subsection shall increase to 3.5% of
each exchange wager.
The tax levied under this subsection shall be deposited
monthly into the Sports Wagering Fund. The Board shall certify
all amounts deposited into the Sports Wagering Fund under this
subsection to the State Comptroller. The State Comptroller
shall direct and the State Treasurer shall transfer that
certified amount from the Sports Wagering Fund to the General
Revenue Fund.

SB3019 Enrolled - 1290 - LRB104 20255 HLH 33706 b
(e) Annually, a master sports wagering licensee shall
transmit to the Board an audit of the financial transactions
and condition of the licensee's total operations.
Additionally, within 90 days after the end of each quarter of
each fiscal year, the master sports wagering licensee shall
transmit to the Board a compliance report on engagement
procedures determined by the Board. All audits and compliance
engagements shall be conducted by certified public accountants
selected by the Board. Each certified public accountant must
be registered in the State of Illinois under the Illinois
Public Accounting Act. The compensation for each certified
public accountant shall be paid directly by the master sports
wagering licensee to the certified public accountant.
(Source: P.A. 103-592, eff. 6-7-24; 104-6, eff. 6-16-25.)
ARTICLE 135
Section 135-5. The Illinois Income Tax Act is amended by
changing Section 201 as follows:
(35 ILCS 5/201)
Sec. 201. Tax imposed.
(a) In general. A tax measured by net income is hereby
imposed on every individual, corporation, trust and estate for
each taxable year ending after July 31, 1969 on the privilege
of earning or receiving income in or as a resident of this

SB3019 Enrolled - 1291 - LRB104 20255 HLH 33706 b
State. Such tax shall be in addition to all other occupation or
privilege taxes imposed by this State or by any municipal
corporation or political subdivision thereof.
(b) Rates. The tax imposed by subsection (a) of this
Section shall be determined as follows, except as adjusted by
subsection (d-1):
(1) In the case of an individual, trust or estate, for
taxable years ending prior to July 1, 1989, an amount
equal to 2 1/2% of the taxpayer's net income for the
taxable year.
(2) In the case of an individual, trust or estate, for
taxable years beginning prior to July 1, 1989 and ending
after June 30, 1989, an amount equal to the sum of (i) 2
1/2% of the taxpayer's net income for the period prior to
July 1, 1989, as calculated under Section 202.3, and (ii)
3% of the taxpayer's net income for the period after June
30, 1989, as calculated under Section 202.3.
(3) In the case of an individual, trust or estate, for
taxable years beginning after June 30, 1989, and ending
prior to January 1, 2011, an amount equal to 3% of the
taxpayer's net income for the taxable year.
(4) In the case of an individual, trust, or estate,
for taxable years beginning prior to January 1, 2011, and
ending after December 31, 2010, an amount equal to the sum
of (i) 3% of the taxpayer's net income for the period prior
to January 1, 2011, as calculated under Section 202.5, and

SB3019 Enrolled - 1292 - LRB104 20255 HLH 33706 b
(ii) 5% of the taxpayer's net income for the period after
December 31, 2010, as calculated under Section 202.5.
(5) In the case of an individual, trust, or estate,
for taxable years beginning on or after January 1, 2011,
and ending prior to January 1, 2015, an amount equal to 5%
of the taxpayer's net income for the taxable year.
(5.1) In the case of an individual, trust, or estate,
for taxable years beginning prior to January 1, 2015, and
ending after December 31, 2014, an amount equal to the sum
of (i) 5% of the taxpayer's net income for the period prior
to January 1, 2015, as calculated under Section 202.5, and
(ii) 3.75% of the taxpayer's net income for the period
after December 31, 2014, as calculated under Section
202.5.
(5.2) In the case of an individual, trust, or estate,
for taxable years beginning on or after January 1, 2015,
and ending prior to July 1, 2017, an amount equal to 3.75%
of the taxpayer's net income for the taxable year.
(5.3) In the case of an individual, trust, or estate,
for taxable years beginning prior to July 1, 2017, and
ending after June 30, 2017, an amount equal to the sum of
(i) 3.75% of the taxpayer's net income for the period
prior to July 1, 2017, as calculated under Section 202.5,
and (ii) 4.95% of the taxpayer's net income for the period
after June 30, 2017, as calculated under Section 202.5.
(5.4) In the case of an individual, trust, or estate,

SB3019 Enrolled - 1293 - LRB104 20255 HLH 33706 b
for taxable years beginning on or after July 1, 2017, an
amount equal to 4.95% of the taxpayer's net income for the
taxable year.
(6) In the case of a corporation, for taxable years
ending prior to July 1, 1989, an amount equal to 4% of the
taxpayer's net income for the taxable year.
(7) In the case of a corporation, for taxable years
beginning prior to July 1, 1989 and ending after June 30,
1989, an amount equal to the sum of (i) 4% of the
taxpayer's net income for the period prior to July 1,
1989, as calculated under Section 202.3, and (ii) 4.8% of
the taxpayer's net income for the period after June 30,
1989, as calculated under Section 202.3.
(8) In the case of a corporation, for taxable years
beginning after June 30, 1989, and ending prior to January
1, 2011, an amount equal to 4.8% of the taxpayer's net
income for the taxable year.
(9) In the case of a corporation, for taxable years
beginning prior to January 1, 2011, and ending after
December 31, 2010, an amount equal to the sum of (i) 4.8%
of the taxpayer's net income for the period prior to
January 1, 2011, as calculated under Section 202.5, and
(ii) 7% of the taxpayer's net income for the period after
December 31, 2010, as calculated under Section 202.5.
(10) In the case of a corporation, for taxable years
beginning on or after January 1, 2011, and ending prior to

SB3019 Enrolled - 1294 - LRB104 20255 HLH 33706 b
January 1, 2015, an amount equal to 7% of the taxpayer's
net income for the taxable year.
(11) In the case of a corporation, for taxable years
beginning prior to January 1, 2015, and ending after
December 31, 2014, an amount equal to the sum of (i) 7% of
the taxpayer's net income for the period prior to January
1, 2015, as calculated under Section 202.5, and (ii) 5.25%
of the taxpayer's net income for the period after December
31, 2014, as calculated under Section 202.5.
(12) In the case of a corporation, for taxable years
beginning on or after January 1, 2015, and ending prior to
July 1, 2017, an amount equal to 5.25% of the taxpayer's
net income for the taxable year.
(13) In the case of a corporation, for taxable years
beginning prior to July 1, 2017, and ending after June 30,
2017, an amount equal to the sum of (i) 5.25% of the
taxpayer's net income for the period prior to July 1,
2017, as calculated under Section 202.5, and (ii) 7% of
the taxpayer's net income for the period after June 30,
2017, as calculated under Section 202.5.
(14) In the case of a corporation, for taxable years
beginning on or after July 1, 2017, an amount equal to 7%
of the taxpayer's net income for the taxable year.
The rates under this subsection (b) are subject to the
provisions of Section 201.5.
(b-5) Surcharge; sale or exchange of assets, properties,

SB3019 Enrolled - 1295 - LRB104 20255 HLH 33706 b
and intangibles of organization gaming licensees. For each of
taxable years 2019 through 2027, a surcharge is imposed on all
taxpayers on income arising from the sale or exchange of
capital assets, depreciable business property, real property
used in the trade or business, and Section 197 intangibles (i)
of an organization licensee under the Illinois Horse Racing
Act of 1975 and (ii) of an organization gaming licensee under
the Illinois Gambling Act. The amount of the surcharge is
equal to the amount of federal income tax liability for the
taxable year attributable to those sales and exchanges. The
surcharge imposed shall not apply if:
(1) the organization gaming license, organization
license, or racetrack property is transferred as a result
of any of the following:
(A) bankruptcy, a receivership, or a debt
adjustment initiated by or against the initial
licensee or the substantial owners of the initial
licensee;
(B) cancellation, revocation, or termination of
any such license by the Illinois Gaming Board or the
Illinois Racing Board;
(C) a determination by the Illinois Gaming Board
that transfer of the license is in the best interests
of Illinois gaming;
(D) the death of an owner of the equity interest in
a licensee;

SB3019 Enrolled - 1296 - LRB104 20255 HLH 33706 b
(E) the acquisition of a controlling interest in
the stock or substantially all of the assets of a
publicly traded company;
(F) a transfer by a parent company to a wholly
owned subsidiary; or
(G) the transfer or sale to or by one person to
another person where both persons were initial owners
of the license when the license was issued; or
(2) the controlling interest in the organization
gaming license, organization license, or racetrack
property is transferred in a transaction to lineal
descendants in which no gain or loss is recognized or as a
result of a transaction in accordance with Section 351 of
the Internal Revenue Code in which no gain or loss is
recognized; or
(3) live horse racing was not conducted in 2010 at a
racetrack located within 3 miles of the Mississippi River
under a license issued pursuant to the Illinois Horse
Racing Act of 1975.
The transfer of an organization gaming license,
organization license, or racetrack property by a person other
than the initial licensee to receive the organization gaming
license is not subject to a surcharge. The Department shall
adopt rules necessary to implement and administer this
subsection.
(c) Personal Property Tax Replacement Income Tax.

SB3019 Enrolled - 1297 - LRB104 20255 HLH 33706 b
Beginning on July 1, 1979 and thereafter, in addition to such
income tax, there is also hereby imposed the Personal Property
Tax Replacement Income Tax measured by net income on every
corporation (including Subchapter S corporations), partnership
and trust, for each taxable year ending after June 30, 1979.
Such taxes are imposed on the privilege of earning or
receiving income in or as a resident of this State. The
Personal Property Tax Replacement Income Tax shall be in
addition to the income tax imposed by subsections (a) and (b)
of this Section and in addition to all other occupation or
privilege taxes imposed by this State or by any municipal
corporation or political subdivision thereof.
(d) Additional Personal Property Tax Replacement Income
Tax Rates. The personal property tax replacement income tax
imposed by this subsection and subsection (c) of this Section
in the case of a corporation, other than a Subchapter S
corporation and except as adjusted by subsection (d-1), shall
be an additional amount equal to 2.85% of such taxpayer's net
income for the taxable year, except that beginning on January
1, 1981, and thereafter, the rate of 2.85% specified in this
subsection shall be reduced to 2.5%, and in the case of a
partnership, trust or a Subchapter S corporation shall be an
additional amount equal to 1.5% of such taxpayer's net income
for the taxable year.
(d-1) Rate reduction for certain foreign insurers. In the
case of a foreign insurer, as defined by Section 35A-5 of the

SB3019 Enrolled - 1298 - LRB104 20255 HLH 33706 b
Illinois Insurance Code, whose state or country of domicile
imposes on insurers domiciled in Illinois a retaliatory tax
(excluding any insurer whose premiums from reinsurance assumed
are 50% or more of its total insurance premiums as determined
under paragraph (2) of subsection (b) of Section 304, except
that for purposes of this determination premiums from
reinsurance do not include premiums from inter-affiliate
reinsurance arrangements), beginning with taxable years ending
on or after December 31, 1999, the sum of the rates of tax
imposed by subsections (b) and (d) shall be reduced (but not
increased) to the rate at which the total amount of tax imposed
under this Act, net of all credits allowed under this Act,
shall equal (i) the total amount of tax that would be imposed
on the foreign insurer's net income allocable to Illinois for
the taxable year by such foreign insurer's state or country of
domicile if that net income were subject to all income taxes
and taxes measured by net income imposed by such foreign
insurer's state or country of domicile, net of all credits
allowed or (ii) a rate of zero if no such tax is imposed on
such income by the foreign insurer's state of domicile. For
the purposes of this subsection (d-1), an inter-affiliate
includes a mutual insurer under common management.
(1) For the purposes of subsection (d-1), in no event
shall the sum of the rates of tax imposed by subsections
(b) and (d) be reduced below the rate at which the sum of:
(A) the total amount of tax imposed on such

SB3019 Enrolled - 1299 - LRB104 20255 HLH 33706 b
foreign insurer under this Act for a taxable year, net
of all credits allowed under this Act, plus
(B) the privilege tax imposed by Section 409 of
the Illinois Insurance Code, the fire insurance
company tax imposed by Section 12 of the Fire
Investigation Act, and the fire department taxes
imposed under Section 11-10-1 of the Illinois
Municipal Code,
equals 1.25% for taxable years ending prior to December
31, 2003, or 1.75% for taxable years ending on or after
December 31, 2003, of the net taxable premiums written for
the taxable year, as described by subsection (1) of
Section 409 of the Illinois Insurance Code. This paragraph
will in no event increase the rates imposed under
subsections (b) and (d).
(2) Any reduction in the rates of tax imposed by this
subsection shall be applied first against the rates
imposed by subsection (b) and only after the tax imposed
by subsection (a) net of all credits allowed under this
Section other than the credit allowed under subsection (i)
has been reduced to zero, against the rates imposed by
subsection (d).
This subsection (d-1) is exempt from the provisions of
Section 250.
(e) Investment credit. A taxpayer shall be allowed a
credit against the Personal Property Tax Replacement Income

SB3019 Enrolled - 1300 - LRB104 20255 HLH 33706 b
Tax for investment in qualified property.
(1) A taxpayer shall be allowed a credit equal to .5%
of the basis of qualified property placed in service
during the taxable year, provided such property is placed
in service on or after July 1, 1984. There shall be allowed
an additional credit equal to .5% of the basis of
qualified property placed in service during the taxable
year, provided such property is placed in service on or
after July 1, 1986, and the taxpayer's base employment
within Illinois has increased by 1% or more over the
preceding year as determined by the taxpayer's employment
records filed with the Illinois Department of Employment
Security. Taxpayers who are new to Illinois shall be
deemed to have met the 1% growth in base employment for the
first year in which they file employment records with the
Illinois Department of Employment Security. The provisions
added to this Section by Public Act 85-1200 (and restored
by Public Act 87-895) shall be construed as declaratory of
existing law and not as a new enactment. If, in any year,
the increase in base employment within Illinois over the
preceding year is less than 1%, the additional credit
shall be limited to that percentage times a fraction, the
numerator of which is .5% and the denominator of which is
1%, but shall not exceed .5%. The investment credit shall
not be allowed to the extent that it would reduce a
taxpayer's liability in any tax year below zero, nor may

SB3019 Enrolled - 1301 - LRB104 20255 HLH 33706 b
any credit for qualified property be allowed for any year
other than the year in which the property was placed in
service in Illinois. For tax years ending on or after
December 31, 1987, and on or before December 31, 1988, the
credit shall be allowed for the tax year in which the
property is placed in service, or, if the amount of the
credit exceeds the tax liability for that year, whether it
exceeds the original liability or the liability as later
amended, such excess may be carried forward and applied to
the tax liability of the 5 taxable years following the
excess credit years if the taxpayer (i) makes investments
which cause the creation of a minimum of 2,000 full-time
equivalent jobs in Illinois, (ii) is located in an
enterprise zone established pursuant to the Illinois
Enterprise Zone Act and (iii) is certified by the
Department of Commerce and Community Affairs (now
Department of Commerce and Economic Opportunity) as
complying with the requirements specified in clause (i)
and (ii) by July 1, 1986. The Department of Commerce and
Community Affairs (now Department of Commerce and Economic
Opportunity) shall notify the Department of Revenue of all
such certifications immediately. For tax years ending
after December 31, 1988, the credit shall be allowed for
the tax year in which the property is placed in service,
or, if the amount of the credit exceeds the tax liability
for that year, whether it exceeds the original liability

SB3019 Enrolled - 1302 - LRB104 20255 HLH 33706 b
or the liability as later amended, such excess may be
carried forward and applied to the tax liability of the 5
taxable years following the excess credit years. The
credit shall be applied to the earliest year for which
there is a liability. If there is credit from more than one
tax year that is available to offset a liability, earlier
credit shall be applied first.
(2) The term "qualified property" means property
which:
(A) is tangible, whether new or used, including
buildings and structural components of buildings and
signs that are real property, but not including land
or improvements to real property that are not a
structural component of a building such as
landscaping, sewer lines, local access roads, fencing,
parking lots, and other appurtenances;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(e);
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code;
(D) is used in Illinois by a taxpayer who is
primarily engaged in manufacturing, or in mining coal
or fluorite, or in retailing, or was placed in service

SB3019 Enrolled - 1303 - LRB104 20255 HLH 33706 b
on or after July 1, 2006 in a River Edge Redevelopment
Zone established pursuant to the River Edge
Redevelopment Zone Act; and
(E) has not previously been used in Illinois in
such a manner and by such a person as would qualify for
the credit provided by this subsection (e) or
subsection (f).
(3) For purposes of this subsection (e),
"manufacturing" means the material staging and production
of tangible personal property by procedures commonly
regarded as manufacturing, processing, fabrication, or
assembling which changes some existing material into new
shapes, new qualities, or new combinations. For purposes
of this subsection (e) the term "mining" shall have the
same meaning as the term "mining" in Section 613(c) of the
Internal Revenue Code. For purposes of this subsection
(e), the term "retailing" means the sale of tangible
personal property for use or consumption and not for
resale, or services rendered in conjunction with the sale
of tangible personal property for use or consumption and
not for resale. For purposes of this subsection (e),
"tangible personal property" has the same meaning as when
that term is used in the Retailers' Occupation Tax Act,
and, for taxable years ending after December 31, 2008,
does not include the generation, transmission, or
distribution of electricity.

SB3019 Enrolled - 1304 - LRB104 20255 HLH 33706 b
(4) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.
(5) If the basis of the property for federal income
tax depreciation purposes is increased after it has been
placed in service in Illinois by the taxpayer, the amount
of such increase shall be deemed property placed in
service on the date of such increase in basis.
(6) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
(7) If during any taxable year, any property ceases to
be qualified property in the hands of the taxpayer within
48 months after being placed in service, or the situs of
any qualified property is moved outside Illinois within 48
months after being placed in service, the Personal
Property Tax Replacement Income Tax for such taxable year
shall be increased. Such increase shall be determined by
(i) recomputing the investment credit which would have
been allowed for the year in which credit for such
property was originally allowed by eliminating such
property from such computation and, (ii) subtracting such
recomputed credit from the amount of credit previously
allowed. For the purposes of this paragraph (7), a
reduction of the basis of qualified property resulting
from a redetermination of the purchase price shall be
deemed a disposition of qualified property to the extent

SB3019 Enrolled - 1305 - LRB104 20255 HLH 33706 b
of such reduction.
(8) Unless the investment credit is extended by law,
the basis of qualified property shall not include costs
incurred after December 31, 2018, except for costs
incurred pursuant to a binding contract entered into on or
before December 31, 2018.
(9) Each taxable year ending before December 31, 2000,
a partnership may elect to pass through to its partners
the credits to which the partnership is entitled under
this subsection (e) for the taxable year. A partner may
use the credit allocated to him or her under this
paragraph only against the tax imposed in subsections (c)
and (d) of this Section. If the partnership makes that
election, those credits shall be allocated among the
partners in the partnership in accordance with the rules
set forth in Section 704(b) of the Internal Revenue Code,
and the rules promulgated under that Section, and the
allocated amount of the credits shall be allowed to the
partners for that taxable year. The partnership shall make
this election on its Personal Property Tax Replacement
Income Tax return for that taxable year. The election to
pass through the credits shall be irrevocable.
For taxable years ending on or after December 31,
2000, a partner that qualifies its partnership for a
subtraction under subparagraph (I) of paragraph (2) of
subsection (d) of Section 203 or a shareholder that

SB3019 Enrolled - 1306 - LRB104 20255 HLH 33706 b
qualifies a Subchapter S corporation for a subtraction
under subparagraph (S) of paragraph (2) of subsection (b)
of Section 203 shall be allowed a credit under this
subsection (e) equal to its share of the credit earned
under this subsection (e) during the taxable year by the
partnership or Subchapter S corporation, determined in
accordance with the determination of income and
distributive share of income under Sections 702 and 704
and Subchapter S of the Internal Revenue Code. This
paragraph is exempt from the provisions of Section 250.
(f) Investment credit; Enterprise Zone; River Edge
Redevelopment Zone.
(1) A taxpayer shall be allowed a credit against the
tax imposed by subsections (a) and (b) of this Section for
investment in qualified property which is placed in
service in an Enterprise Zone created pursuant to the
Illinois Enterprise Zone Act or, for property placed in
service on or after July 1, 2006, a River Edge
Redevelopment Zone established pursuant to the River Edge
Redevelopment Zone Act. For partners, shareholders of
Subchapter S corporations, and owners of limited liability
companies, if the liability company is treated as a
partnership for purposes of federal and State income
taxation, for taxable years ending before December 31,
2023, there shall be allowed a credit under this
subsection (f) to be determined in accordance with the

SB3019 Enrolled - 1307 - LRB104 20255 HLH 33706 b
determination of income and distributive share of income
under Sections 702 and 704 and Subchapter S of the
Internal Revenue Code. For taxable years ending on or
after December 31, 2023, for partners and shareholders of
Subchapter S corporations, the provisions of Section 251
shall apply with respect to the credit under this
subsection. The credit shall be .5% of the basis for such
property. The credit shall be available only in the
taxable year in which the property is placed in service in
the Enterprise Zone or River Edge Redevelopment Zone and
shall not be allowed to the extent that it would reduce a
taxpayer's liability for the tax imposed by subsections
(a) and (b) of this Section to below zero. For tax years
ending on or after December 31, 1985, the credit shall be
allowed for the tax year in which the property is placed in
service, or, if the amount of the credit exceeds the tax
liability for that year, whether it exceeds the original
liability or the liability as later amended, such excess
may be carried forward and applied to the tax liability of
the 5 taxable years following the excess credit year. The
credit shall be applied to the earliest year for which
there is a liability. If there is credit from more than one
tax year that is available to offset a liability, the
credit accruing first in time shall be applied first.
(2) The term qualified property means property which:
(A) is tangible, whether new or used, including

SB3019 Enrolled - 1308 - LRB104 20255 HLH 33706 b
buildings and structural components of buildings;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(f);
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code;
(D) is used in the Enterprise Zone or River Edge
Redevelopment Zone by the taxpayer; and
(E) has not been previously used in Illinois in
such a manner and by such a person as would qualify for
the credit provided by this subsection (f) or
subsection (e).
(3) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.
(4) If the basis of the property for federal income
tax depreciation purposes is increased after it has been
placed in service in the Enterprise Zone or River Edge
Redevelopment Zone by the taxpayer, the amount of such
increase shall be deemed property placed in service on the
date of such increase in basis.
(5) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
(6) If during any taxable year, any property ceases to

SB3019 Enrolled - 1309 - LRB104 20255 HLH 33706 b
be qualified property in the hands of the taxpayer within
48 months after being placed in service, or the situs of
any qualified property is moved outside the Enterprise
Zone or River Edge Redevelopment Zone within 48 months
after being placed in service, the tax imposed under
subsections (a) and (b) of this Section for such taxable
year shall be increased. Such increase shall be determined
by (i) recomputing the investment credit which would have
been allowed for the year in which credit for such
property was originally allowed by eliminating such
property from such computation, and (ii) subtracting such
recomputed credit from the amount of credit previously
allowed. For the purposes of this paragraph (6), a
reduction of the basis of qualified property resulting
from a redetermination of the purchase price shall be
deemed a disposition of qualified property to the extent
of such reduction.
(7) There shall be allowed an additional credit equal
to 0.5% of the basis of qualified property placed in
service during the taxable year in a River Edge
Redevelopment Zone, provided such property is placed in
service on or after July 1, 2006, and the taxpayer's base
employment within Illinois has increased by 1% or more
over the preceding year as determined by the taxpayer's
employment records filed with the Illinois Department of
Employment Security. Taxpayers who are new to Illinois

SB3019 Enrolled - 1310 - LRB104 20255 HLH 33706 b
shall be deemed to have met the 1% growth in base
employment for the first year in which they file
employment records with the Illinois Department of
Employment Security. If, in any year, the increase in base
employment within Illinois over the preceding year is less
than 1%, the additional credit shall be limited to that
percentage times a fraction, the numerator of which is
0.5% and the denominator of which is 1%, but shall not
exceed 0.5%.
(8) For taxable years beginning on or after January 1,
2021, there shall be allowed an Enterprise Zone
construction jobs credit against the taxes imposed under
subsections (a) and (b) of this Section as provided in
Section 13 of the Illinois Enterprise Zone Act.
The credit or credits may not reduce the taxpayer's
liability to less than zero. If the amount of the credit or
credits exceeds the taxpayer's liability, the excess may
be carried forward and applied against the taxpayer's
liability in succeeding calendar years in the same manner
provided under paragraph (4) of Section 211 of this Act.
The credit or credits shall be applied to the earliest
year for which there is a tax liability. If there are
credits from more than one taxable year that are available
to offset a liability, the earlier credit shall be applied
first.
For partners, shareholders of Subchapter S

SB3019 Enrolled - 1311 - LRB104 20255 HLH 33706 b
corporations, and owners of limited liability companies,
if the liability company is treated as a partnership for
the purposes of federal and State income taxation, for
taxable years ending before December 31, 2023, there shall
be allowed a credit under this Section to be determined in
accordance with the determination of income and
distributive share of income under Sections 702 and 704
and Subchapter S of the Internal Revenue Code. For taxable
years ending on or after December 31, 2023, for partners
and shareholders of Subchapter S corporations, the
provisions of Section 251 shall apply with respect to the
credit under this subsection.
The total aggregate amount of credits awarded under
the Blue Collar Jobs Act (Article 20 of Public Act 101-9)
shall not exceed $20,000,000 in any State fiscal year.
This paragraph (8) is exempt from the provisions of
Section 250.
(g) (Blank).
(h) Investment credit; High Impact Business.
(1) Subject to subsections (b) and (b-5) of Section
5.5 of the Illinois Enterprise Zone Act, a taxpayer shall
be allowed a credit against the tax imposed by subsections
(a) and (b) of this Section for investment in qualified
property which is placed in service by a Department of
Commerce and Economic Opportunity designated High Impact
Business. The credit shall be .5% of the basis for such

SB3019 Enrolled - 1312 - LRB104 20255 HLH 33706 b
property. The credit shall not be available (i) until the
minimum investments in qualified property set forth in
subdivision (a)(3)(A) of Section 5.5 of the Illinois
Enterprise Zone Act have been satisfied or (ii) until the
time authorized in subsection (b-5) of the Illinois
Enterprise Zone Act for entities designated as High Impact
Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
(a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
Act, and shall not be allowed to the extent that it would
reduce a taxpayer's liability for the tax imposed by
subsections (a) and (b) of this Section to below zero. The
credit applicable to such investments shall be taken in
the taxable year in which such investments have been
completed. The credit for additional investments beyond
the minimum investment by a designated high impact
business authorized under subdivision (a)(3)(A) of Section
5.5 of the Illinois Enterprise Zone Act shall be available
only in the taxable year in which the property is placed in
service and shall not be allowed to the extent that it
would reduce a taxpayer's liability for the tax imposed by
subsections (a) and (b) of this Section to below zero. For
tax years ending on or after December 31, 1987, the credit
shall be allowed for the tax year in which the property is
placed in service, or, if the amount of the credit exceeds
the tax liability for that year, whether it exceeds the
original liability or the liability as later amended, such

SB3019 Enrolled - 1313 - LRB104 20255 HLH 33706 b
excess may be carried forward and applied to the tax
liability of the 5 taxable years following the excess
credit year. The credit shall be applied to the earliest
year for which there is a liability. If there is credit
from more than one tax year that is available to offset a
liability, the credit accruing first in time shall be
applied first.
Changes made in this subdivision (h)(1) by Public Act
88-670 restore changes made by Public Act 85-1182 and
reflect existing law.
(2) The term qualified property means property which:
(A) is tangible, whether new or used, including
buildings and structural components of buildings;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(h);
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code; and
(D) is not eligible for the Enterprise Zone
Investment Credit provided by subsection (f) of this
Section.
(3) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.

SB3019 Enrolled - 1314 - LRB104 20255 HLH 33706 b
(4) If the basis of the property for federal income
tax depreciation purposes is increased after it has been
placed in service in a federally designated Foreign Trade
Zone or Sub-Zone located in Illinois by the taxpayer, the
amount of such increase shall be deemed property placed in
service on the date of such increase in basis.
(5) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
(6) If during any taxable year ending on or before
December 31, 1996, any property ceases to be qualified
property in the hands of the taxpayer within 48 months
after being placed in service, or the situs of any
qualified property is moved outside Illinois within 48
months after being placed in service, the tax imposed
under subsections (a) and (b) of this Section for such
taxable year shall be increased. Such increase shall be
determined by (i) recomputing the investment credit which
would have been allowed for the year in which credit for
such property was originally allowed by eliminating such
property from such computation, and (ii) subtracting such
recomputed credit from the amount of credit previously
allowed. For the purposes of this paragraph (6), a
reduction of the basis of qualified property resulting
from a redetermination of the purchase price shall be
deemed a disposition of qualified property to the extent
of such reduction.

SB3019 Enrolled - 1315 - LRB104 20255 HLH 33706 b
(7) Beginning with tax years ending after December 31,
1996, if a taxpayer qualifies for the credit under this
subsection (h) and thereby is granted a tax abatement and
the taxpayer relocates its entire facility in violation of
the explicit terms and length of the contract under
Section 18-183 of the Property Tax Code, the tax imposed
under subsections (a) and (b) of this Section shall be
increased for the taxable year in which the taxpayer
relocated its facility by an amount equal to the amount of
credit received by the taxpayer under this subsection (h).
(h-5) High Impact Business construction jobs credit. For
taxable years beginning on or after January 1, 2021, there
shall also be allowed a High Impact Business construction jobs
credit against the tax imposed under subsections (a) and (b)
of this Section as provided in subsections (i) and (j) of
Section 5.5 of the Illinois Enterprise Zone Act.
The credit or credits may not reduce the taxpayer's
liability to less than zero. If the amount of the credit or
credits exceeds the taxpayer's liability, the excess may be
carried forward and applied against the taxpayer's liability
in succeeding calendar years in the manner provided under
paragraph (4) of Section 211 of this Act. The credit or credits
shall be applied to the earliest year for which there is a tax
liability. If there are credits from more than one taxable
year that are available to offset a liability, the earlier
credit shall be applied first.

SB3019 Enrolled - 1316 - LRB104 20255 HLH 33706 b
For partners, shareholders of Subchapter S corporations,
and owners of limited liability companies, for taxable years
ending before December 31, 2023, if the liability company is
treated as a partnership for the purposes of federal and State
income taxation, there shall be allowed a credit under this
Section to be determined in accordance with the determination
of income and distributive share of income under Sections 702
and 704 and Subchapter S of the Internal Revenue Code. For
taxable years ending on or after December 31, 2023, for
partners and shareholders of Subchapter S corporations, the
provisions of Section 251 shall apply with respect to the
credit under this subsection.
The total aggregate amount of credits awarded under the
Blue Collar Jobs Act (Article 20 of Public Act 101-9) shall not
exceed $20,000,000 in any State fiscal year.
This subsection (h-5) is exempt from the provisions of
Section 250.
(i) Credit for Personal Property Tax Replacement Income
Tax. For tax years ending prior to December 31, 2003, a credit
shall be allowed against the tax imposed by subsections (a)
and (b) of this Section for the tax imposed by subsections (c)
and (d) of this Section. This credit shall be computed by
multiplying the tax imposed by subsections (c) and (d) of this
Section by a fraction, the numerator of which is base income
allocable to Illinois and the denominator of which is Illinois
base income, and further multiplying the product by the tax

SB3019 Enrolled - 1317 - LRB104 20255 HLH 33706 b
rate imposed by subsections (a) and (b) of this Section.
Any credit earned on or after December 31, 1986 under this
subsection which is unused in the year the credit is computed
because it exceeds the tax liability imposed by subsections
(a) and (b) for that year (whether it exceeds the original
liability or the liability as later amended) may be carried
forward and applied to the tax liability imposed by
subsections (a) and (b) of the 5 taxable years following the
excess credit year, provided that no credit may be carried
forward to any year ending on or after December 31, 2003. This
credit shall be applied first to the earliest year for which
there is a liability. If there is a credit under this
subsection from more than one tax year that is available to
offset a liability the earliest credit arising under this
subsection shall be applied first.
If, during any taxable year ending on or after December
31, 1986, the tax imposed by subsections (c) and (d) of this
Section for which a taxpayer has claimed a credit under this
subsection (i) is reduced, the amount of credit for such tax
shall also be reduced. Such reduction shall be determined by
recomputing the credit to take into account the reduced tax
imposed by subsections (c) and (d). If any portion of the
reduced amount of credit has been carried to a different
taxable year, an amended return shall be filed for such
taxable year to reduce the amount of credit claimed.
(j) Training expense credit. Beginning with tax years

SB3019 Enrolled - 1318 - LRB104 20255 HLH 33706 b
ending on or after December 31, 1986 and prior to December 31,
2003, a taxpayer shall be allowed a credit against the tax
imposed by subsections (a) and (b) under this Section for all
amounts paid or accrued, on behalf of all persons employed by
the taxpayer in Illinois or Illinois residents employed
outside of Illinois by a taxpayer, for educational or
vocational training in semi-technical or technical fields or
semi-skilled or skilled fields, which were deducted from gross
income in the computation of taxable income. The credit
against the tax imposed by subsections (a) and (b) shall be
1.6% of such training expenses. For partners, shareholders of
subchapter S corporations, and owners of limited liability
companies, if the liability company is treated as a
partnership for purposes of federal and State income taxation,
for taxable years ending before December 31, 2023, there shall
be allowed a credit under this subsection (j) to be determined
in accordance with the determination of income and
distributive share of income under Sections 702 and 704 and
subchapter S of the Internal Revenue Code. For taxable years
ending on or after December 31, 2023, for partners and
shareholders of Subchapter S corporations, the provisions of
Section 251 shall apply with respect to the credit under this
subsection.
Any credit allowed under this subsection which is unused
in the year the credit is earned may be carried forward to each
of the 5 taxable years following the year for which the credit

SB3019 Enrolled - 1319 - LRB104 20255 HLH 33706 b
is first computed until it is used. This credit shall be
applied first to the earliest year for which there is a
liability. If there is a credit under this subsection from
more than one tax year that is available to offset a liability,
the earliest credit arising under this subsection shall be
applied first. No carryforward credit may be claimed in any
tax year ending on or after December 31, 2003.
(k) Research and development credit. For tax years ending
after July 1, 1990 and prior to December 31, 2003, and
beginning again for tax years ending on or after December 31,
2004, and ending prior to January 1, 2032, a taxpayer shall be
allowed a credit against the tax imposed by subsections (a)
and (b) of this Section for increasing research activities in
this State. The credit allowed against the tax imposed by
subsections (a) and (b) shall be equal to 6 1/2% of the
qualifying expenditures for increasing research activities in
this State. For partners, shareholders of subchapter S
corporations, and owners of limited liability companies, if
the liability company is treated as a partnership for purposes
of federal and State income taxation, for taxable years ending
before December 31, 2023, there shall be allowed a credit
under this subsection to be determined in accordance with the
determination of income and distributive share of income under
Sections 702 and 704 and subchapter S of the Internal Revenue
Code. For taxable years ending on or after December 31, 2023,
for partners and shareholders of Subchapter S corporations,

SB3019 Enrolled - 1320 - LRB104 20255 HLH 33706 b
the provisions of Section 251 shall apply with respect to the
credit under this subsection.
For purposes of this subsection, "qualifying expenditures"
means the qualifying expenditures as defined for the federal
credit for increasing research activities which would be
allowable under Section 41 of the Internal Revenue Code and
which are conducted in this State, "qualifying expenditures
for increasing research activities in this State" means the
excess of qualifying expenditures for the taxable year in
which incurred over qualifying expenditures for the base
period, "qualifying expenditures for the base period" means
the average of the qualifying expenditures for each year in
the base period, and "base period" means the 3 taxable years
immediately preceding the taxable year for which the
determination is being made.
Any credit in excess of the tax liability for the taxable
year may be carried forward. A taxpayer may elect to have the
unused credit shown on its final completed return carried over
as a credit against the tax liability for the following 5
taxable years or until it has been fully used, whichever
occurs first; provided that no credit earned in a tax year
ending prior to December 31, 2003 may be carried forward to any
year ending on or after December 31, 2003.
If an unused credit is carried forward to a given year from
2 or more earlier years, that credit arising in the earliest
year will be applied first against the tax liability for the

SB3019 Enrolled - 1321 - LRB104 20255 HLH 33706 b
given year. If a tax liability for the given year still
remains, the credit from the next earliest year will then be
applied, and so on, until all credits have been used or no tax
liability for the given year remains. Any remaining unused
credit or credits then will be carried forward to the next
following year in which a tax liability is incurred, except
that no credit can be carried forward to a year which is more
than 5 years after the year in which the expense for which the
credit is given was incurred.
No inference shall be drawn from Public Act 91-644 in
construing this Section for taxable years beginning before
January 1, 1999.
It is the intent of the General Assembly that the research
and development credit under this subsection (k) shall apply
continuously for all tax years ending on or after December 31,
2004 and ending prior to January 1, 2032, including, but not
limited to, the period beginning on January 1, 2016 and ending
on July 6, 2017 (the effective date of Public Act 100-22). All
actions taken in reliance on the continuation of the credit
under this subsection (k) by any taxpayer are hereby
validated.
(l) Environmental Remediation Tax Credit.
(i) For tax years ending after December 31, 1997 and
on or before December 31, 2001, a taxpayer shall be
allowed a credit against the tax imposed by subsections
(a) and (b) of this Section for certain amounts paid for

SB3019 Enrolled - 1322 - LRB104 20255 HLH 33706 b
unreimbursed eligible remediation costs, as specified in
this subsection. For purposes of this Section,
"unreimbursed eligible remediation costs" means costs
approved by the Illinois Environmental Protection Agency
("Agency") under Section 58.14 of the Environmental
Protection Act that were paid in performing environmental
remediation at a site for which a No Further Remediation
Letter was issued by the Agency and recorded under Section
58.10 of the Environmental Protection Act. The credit must
be claimed for the taxable year in which Agency approval
of the eligible remediation costs is granted. The credit
is not available to any taxpayer if the taxpayer or any
related party caused or contributed to, in any material
respect, a release of regulated substances on, in, or
under the site that was identified and addressed by the
remedial action pursuant to the Site Remediation Program
of the Environmental Protection Act. After the Pollution
Control Board rules are adopted pursuant to the Illinois
Administrative Procedure Act for the administration and
enforcement of Section 58.9 of the Environmental
Protection Act, determinations as to credit availability
for purposes of this Section shall be made consistent with
those rules. For purposes of this Section, "taxpayer"
includes a person whose tax attributes the taxpayer has
succeeded to under Section 381 of the Internal Revenue
Code and "related party" includes the persons disallowed a

SB3019 Enrolled - 1323 - LRB104 20255 HLH 33706 b
deduction for losses by paragraphs (b), (c), and (f)(1) of
Section 267 of the Internal Revenue Code by virtue of
being a related taxpayer, as well as any of its partners.
The credit allowed against the tax imposed by subsections
(a) and (b) shall be equal to 25% of the unreimbursed
eligible remediation costs in excess of $100,000 per site,
except that the $100,000 threshold shall not apply to any
site contained in an enterprise zone as determined by the
Department of Commerce and Community Affairs (now
Department of Commerce and Economic Opportunity). The
total credit allowed shall not exceed $40,000 per year
with a maximum total of $150,000 per site. For partners
and shareholders of subchapter S corporations, there shall
be allowed a credit under this subsection to be determined
in accordance with the determination of income and
distributive share of income under Sections 702 and 704
and subchapter S of the Internal Revenue Code.
(ii) A credit allowed under this subsection that is
unused in the year the credit is earned may be carried
forward to each of the 5 taxable years following the year
for which the credit is first earned until it is used. The
term "unused credit" does not include any amounts of
unreimbursed eligible remediation costs in excess of the
maximum credit per site authorized under paragraph (i).
This credit shall be applied first to the earliest year
for which there is a liability. If there is a credit under

SB3019 Enrolled - 1324 - LRB104 20255 HLH 33706 b
this subsection from more than one tax year that is
available to offset a liability, the earliest credit
arising under this subsection shall be applied first. A
credit allowed under this subsection may be sold to a
buyer as part of a sale of all or part of the remediation
site for which the credit was granted. The purchaser of a
remediation site and the tax credit shall succeed to the
unused credit and remaining carry-forward period of the
seller. To perfect the transfer, the assignor shall record
the transfer in the chain of title for the site and provide
written notice to the Director of the Illinois Department
of Revenue of the assignor's intent to sell the
remediation site and the amount of the tax credit to be
transferred as a portion of the sale. In no event may a
credit be transferred to any taxpayer if the taxpayer or a
related party would not be eligible under the provisions
of subsection (i).
(iii) For purposes of this Section, the term "site"
shall have the same meaning as under Section 58.2 of the
Environmental Protection Act.
(m) Education expense credit. Beginning with tax years
ending after December 31, 1999, a taxpayer who is the
custodian of one or more qualifying pupils shall be allowed a
credit against the tax imposed by subsections (a) and (b) of
this Section for qualified education expenses incurred on
behalf of the qualifying pupils. The credit shall be equal to

SB3019 Enrolled - 1325 - LRB104 20255 HLH 33706 b
25% of qualified education expenses, but in no event may the
total credit under this subsection claimed by a family that is
the custodian of qualifying pupils exceed (i) $500 for tax
years ending prior to December 31, 2017, and (ii) $750 for tax
years ending on or after December 31, 2017. In no event shall a
credit under this subsection reduce the taxpayer's liability
under this Act to less than zero. Notwithstanding any other
provision of law, for taxable years beginning on or after
January 1, 2017, no taxpayer may claim a credit under this
subsection (m) if the taxpayer's adjusted gross income for the
taxable year exceeds (i) $500,000, in the case of spouses
filing a joint federal tax return or (ii) $250,000, in the case
of all other taxpayers. This subsection is exempt from the
provisions of Section 250 of this Act.
For purposes of this subsection:
"Qualifying pupils" means individuals who (i) are
residents of the State of Illinois, (ii) are under the age of
21 at the close of the school year for which a credit is
sought, and (iii) during the school year for which a credit is
sought were full-time pupils enrolled in a kindergarten
through twelfth grade education program at any school, as
defined in this subsection.
"Qualified education expense" means the amount incurred on
behalf of a qualifying pupil in excess of $250 for tuition,
book fees, and lab fees at the school in which the pupil is
enrolled during the regular school year.

SB3019 Enrolled - 1326 - LRB104 20255 HLH 33706 b
"School" means any public or nonpublic elementary or
secondary school in Illinois that is in compliance with Title
VI of the Civil Rights Act of 1964 and attendance at which
satisfies the requirements of Section 26-1 of the School Code,
except that nothing shall be construed to require a child to
attend any particular public or nonpublic school to qualify
for the credit under this Section.
"Custodian" means, with respect to qualifying pupils, an
Illinois resident who is a parent, the parents, a legal
guardian, or the legal guardians of the qualifying pupils.
(n) River Edge Redevelopment Zone site remediation tax
credit.
(i) For tax years ending on or after December 31,
2006, a taxpayer shall be allowed a credit against the tax
imposed by subsections (a) and (b) of this Section for
certain amounts paid for unreimbursed eligible remediation
costs, as specified in this subsection. For purposes of
this Section, "unreimbursed eligible remediation costs"
means costs approved by the Illinois Environmental
Protection Agency ("Agency") under Section 58.14a of the
Environmental Protection Act that were paid in performing
environmental remediation at a site within a River Edge
Redevelopment Zone for which a No Further Remediation
Letter was issued by the Agency and recorded under Section
58.10 of the Environmental Protection Act. The credit must
be claimed for the taxable year in which Agency approval

SB3019 Enrolled - 1327 - LRB104 20255 HLH 33706 b
of the eligible remediation costs is granted. The credit
is not available to any taxpayer if the taxpayer or any
related party caused or contributed to, in any material
respect, a release of regulated substances on, in, or
under the site that was identified and addressed by the
remedial action pursuant to the Site Remediation Program
of the Environmental Protection Act. Determinations as to
credit availability for purposes of this Section shall be
made consistent with rules adopted by the Pollution
Control Board pursuant to the Illinois Administrative
Procedure Act for the administration and enforcement of
Section 58.9 of the Environmental Protection Act. For
purposes of this Section, "taxpayer" includes a person
whose tax attributes the taxpayer has succeeded to under
Section 381 of the Internal Revenue Code and "related
party" includes the persons disallowed a deduction for
losses by paragraphs (b), (c), and (f)(1) of Section 267
of the Internal Revenue Code by virtue of being a related
taxpayer, as well as any of its partners. The credit
allowed against the tax imposed by subsections (a) and (b)
shall be equal to 25% of the unreimbursed eligible
remediation costs in excess of $100,000 per site.
(ii) A credit allowed under this subsection that is
unused in the year the credit is earned may be carried
forward to each of the 5 taxable years following the year
for which the credit is first earned until it is used. This

SB3019 Enrolled - 1328 - LRB104 20255 HLH 33706 b
credit shall be applied first to the earliest year for
which there is a liability. If there is a credit under this
subsection from more than one tax year that is available
to offset a liability, the earliest credit arising under
this subsection shall be applied first. A credit allowed
under this subsection may be sold to a buyer as part of a
sale of all or part of the remediation site for which the
credit was granted. The purchaser of a remediation site
and the tax credit shall succeed to the unused credit and
remaining carry-forward period of the seller. To perfect
the transfer, the assignor shall record the transfer in
the chain of title for the site and provide written notice
to the Director of the Illinois Department of Revenue of
the assignor's intent to sell the remediation site and the
amount of the tax credit to be transferred as a portion of
the sale. In no event may a credit be transferred to any
taxpayer if the taxpayer or a related party would not be
eligible under the provisions of subsection (i).
(iii) For purposes of this Section, the term "site"
shall have the same meaning as under Section 58.2 of the
Environmental Protection Act.
(o) For each of taxable years during the Compassionate Use
of Medical Cannabis Program, a surcharge is imposed on all
taxpayers on income arising from the sale or exchange of
capital assets, depreciable business property, real property
used in the trade or business, and Section 197 intangibles of

SB3019 Enrolled - 1329 - LRB104 20255 HLH 33706 b
an organization registrant under the Compassionate Use of
Medical Cannabis Program Act. The amount of the surcharge is
equal to the amount of federal income tax liability for the
taxable year attributable to those sales and exchanges. The
surcharge imposed does not apply if:
(1) the medical cannabis cultivation center
registration, medical cannabis dispensary registration, or
the property of a registration is transferred as a result
of any of the following:
(A) bankruptcy, a receivership, or a debt
adjustment initiated by or against the initial
registration or the substantial owners of the initial
registration;
(B) cancellation, revocation, or termination of
any registration by the Illinois Department of Public
Health;
(C) a determination by the Illinois Department of
Public Health that transfer of the registration is in
the best interests of Illinois qualifying patients as
defined by the Compassionate Use of Medical Cannabis
Program Act;
(D) the death of an owner of the equity interest in
a registrant;
(E) the acquisition of a controlling interest in
the stock or substantially all of the assets of a
publicly traded company;

SB3019 Enrolled - 1330 - LRB104 20255 HLH 33706 b
(F) a transfer by a parent company to a wholly
owned subsidiary; or
(G) the transfer or sale to or by one person to
another person where both persons were initial owners
of the registration when the registration was issued;
or
(2) the cannabis cultivation center registration,
medical cannabis dispensary registration, or the
controlling interest in a registrant's property is
transferred in a transaction to lineal descendants in
which no gain or loss is recognized or as a result of a
transaction in accordance with Section 351 of the Internal
Revenue Code in which no gain or loss is recognized.
(p) Pass-through entity tax.
(1) For taxable years ending on or after December 31,
2021, a partnership (other than a publicly traded
partnership under Section 7704 of the Internal Revenue
Code) or Subchapter S corporation may elect to apply the
provisions of this subsection. A separate election shall
be made for each taxable year. Such election shall be made
at such time, and in such form and manner as prescribed by
the Department, and, once made, is irrevocable.
(2) Entity-level tax. A partnership or Subchapter S
corporation electing to apply the provisions of this
subsection shall be subject to a tax for the privilege of
earning or receiving income in this State in an amount

SB3019 Enrolled - 1331 - LRB104 20255 HLH 33706 b
equal to 4.95% of the taxpayer's net income for the
taxable year.
(2.1) For taxable years ending on or after December
31, 2026, a partnership making an election under this
subsection may elect, in the manner prescribed by the
Department, to determine the tax base for the purposes of
this subsection under one of the following methods:
(A) Full distributive share method. The electing
partnership shall compute and pay tax on the full
distributive share of net income allocable to each
partner who is an Illinois resident, notwithstanding
the apportionment provisions of Section 304. The
apportioned business income shall be used solely for
determining the tax due on behalf of nonresident
partners.
(B) Illinois-sourced income method. The electing
partnership shall compute and pay tax only on that
portion of each partner's distributive share of net
income that is derived from or attributable to sources
within this State, determined in accordance with
Section 304 and the rules adopted under that Section.
The election under this paragraph (2.1) shall be made
annually and shall apply to all partners of the
partnership for the taxable year. The method elected shall
be irrevocable for that taxable year. The Department shall
prescribe the manner and form of the election under this

SB3019 Enrolled - 1332 - LRB104 20255 HLH 33706 b
paragraph (2.1).
(3) Net income defined.
(A) In general. For purposes of paragraph (2), the
term net income has the same meaning as defined in
Section 202 of this Act, except that, for tax years
ending on or after December 31, 2023, a deduction
shall be allowed in computing base income for
distributions to a retired partner to the extent that
the partner's distributions are exempt from tax under
Section 203(a)(2)(F) of this Act. In addition, the
following modifications shall not apply:
(i) the standard exemption allowed under
Section 204;
(ii) the deduction for net losses allowed
under Section 207;
(iii) in the case of an S corporation, the
modification under Section 203(b)(2)(S); and
(iv) in the case of a partnership, the
modifications under Section 203(d)(2)(H) and
Section 203(d)(2)(I).
(B) Special rule for tiered partnerships. If a
taxpayer making the election under paragraph (1) is a
partner of another taxpayer making the election under
paragraph (1), net income shall be computed as
provided in subparagraph (A), except that the taxpayer
shall subtract its distributive share of the net

SB3019 Enrolled - 1333 - LRB104 20255 HLH 33706 b
income of the electing partnership (including its
distributive share of the net income of the electing
partnership derived as a distributive share from
electing partnerships in which it is a partner).
(4) Credit for entity level tax. Each partner or
shareholder of a taxpayer making the election under this
Section shall be allowed a credit against the tax imposed
under subsections (a) and (b) of Section 201 of this Act
for the taxable year of the partnership or Subchapter S
corporation for which an election is in effect ending
within or with the taxable year of the partner or
shareholder in an amount equal to 4.95% times the partner
or shareholder's distributive share of the net income of
the electing partnership or Subchapter S corporation, but
not to exceed the partner's or shareholder's share of the
tax imposed under paragraph (1) which is actually paid by
the partnership or Subchapter S corporation. If the
taxpayer is a partnership or Subchapter S corporation that
is itself a partner of a partnership making the election
under paragraph (1), the credit under this paragraph shall
be allowed to the taxpayer's partners or shareholders (or
if the partner is a partnership or Subchapter S
corporation then its partners or shareholders) in
accordance with the determination of income and
distributive share of income under Sections 702 and 704
and Subchapter S of the Internal Revenue Code. If the

SB3019 Enrolled - 1334 - LRB104 20255 HLH 33706 b
amount of the credit allowed under this paragraph exceeds
the partner's or shareholder's liability for tax imposed
under subsections (a) and (b) of Section 201 of this Act
for the taxable year, such excess shall be treated as an
overpayment for purposes of Section 909 of this Act.
(5) Nonresidents. A nonresident individual who is a
partner or shareholder of a partnership or Subchapter S
corporation for a taxable year for which an election is in
effect under paragraph (1) shall not be required to file
an income tax return under this Act for such taxable year
if the only source of net income of the individual (or the
individual and the individual's spouse in the case of a
joint return) is from an entity making the election under
paragraph (1) and the credit allowed to the partner or
shareholder under paragraph (4) equals or exceeds the
individual's liability for the tax imposed under
subsections (a) and (b) of Section 201 of this Act for the
taxable year.
(6) Liability for tax. Except as provided in this
paragraph, a partnership or Subchapter S making the
election under paragraph (1) is liable for the
entity-level tax imposed under paragraph (2). If the
electing partnership or corporation fails to pay the full
amount of tax deemed assessed under paragraph (2), the
partners or shareholders shall be liable to pay the tax
assessed (including penalties and interest). Each partner

SB3019 Enrolled - 1335 - LRB104 20255 HLH 33706 b
or shareholder shall be liable for the unpaid assessment
based on the ratio of the partner's or shareholder's share
of the net income of the partnership over the total net
income of the partnership. If the partnership or
Subchapter S corporation fails to pay the tax assessed
(including penalties and interest) and thereafter an
amount of such tax is paid by the partners or
shareholders, such amount shall not be collected from the
partnership or corporation.
(7) Foreign tax. For purposes of the credit allowed
under Section 601(b)(3) of this Act, tax paid by a
partnership or Subchapter S corporation to another state
which, as determined by the Department, is substantially
similar to the tax imposed under this subsection, shall be
considered tax paid by the partner or shareholder to the
extent that the partner's or shareholder's share of the
income of the partnership or Subchapter S corporation
allocated and apportioned to such other state bears to the
total income of the partnership or Subchapter S
corporation allocated or apportioned to such other state.
(8) Suspension of withholding. The provisions of
Section 709.5 of this Act shall not apply to a partnership
or Subchapter S corporation for the taxable year for which
an election under paragraph (1) is in effect.
(9) Requirement to pay estimated tax. For each taxable
year for which an election under paragraph (1) is in

SB3019 Enrolled - 1336 - LRB104 20255 HLH 33706 b
effect, a partnership or Subchapter S corporation is
required to pay estimated tax for such taxable year under
Sections 803 and 804 of this Act if the amount payable as
estimated tax can reasonably be expected to exceed $500.
(10) The provisions of this subsection shall apply
only with respect to taxable years for which the
limitation on individual deductions applies under Section
164(b)(6) of the Internal Revenue Code.
(Source: P.A. 103-9, eff. 6-7-23; 103-396, eff. 1-1-24;
103-595, eff. 6-26-24; 103-605, eff. 7-1-24; 104-453, eff.
12-12-25.)
ARTICLE 140
Section 140-5. The Illinois Administrative Procedure Act
is amended by adding Section 5-45.71 as follows:
(5 ILCS 100/5-45.71 new)
Sec. 5-45.71. Emergency rulemaking; Illinois Gaming Board.
To provide for the expeditious and timely implementation of
Sections 25-120 through 25-120.8 of the Sports Wagering Act,
emergency rules implementing Sections 25-120 through 25-120.8
of the Sports Wagering Act may be adopted in accordance with
Section 5-45 by the Illinois Gaming Board. The adoption of
emergency rules authorized by Section 5-45 and this Section is
deemed to be necessary for the public interest, safety, and

SB3019 Enrolled - 1337 - LRB104 20255 HLH 33706 b
welfare.
This Section is repealed one year after the effective date
of this amendatory Act of the 104th General Assembly.
Section 140-10. The Sports Wagering Act is amended by
changing Sections 25-10, 25-25, 25-45, and 25-100 and by
adding Sections 25-120, 25-120.1, 25-120.2, 25-120.3,
25-120.4, 25-120.5, 25-120.6, 25-120.7, and 25-120.8 as
follows:
(230 ILCS 45/25-10)
Sec. 25-10. Definitions. As used in this Act:
"Adjusted gross sports wagering receipts" means a master
sports wagering licensee's gross sports wagering receipts,
less winnings paid to wagerers in such games.
"Athlete" means any current or former professional athlete
or collegiate athlete.
"Board" means the Illinois Gaming Board.
"Covered persons" includes athletes; umpires, referees,
and officials; personnel associated with clubs, teams,
leagues, and athletic associations; medical professionals
(including athletic trainers) who provide services to athletes
and players; and the family members and associates of these
persons where required to serve the purposes of this Act.
"Department" means the Department of the Lottery.
"Gaming facility" means a facility at which gambling

SB3019 Enrolled - 1338 - LRB104 20255 HLH 33706 b
operations are conducted under the Illinois Gambling Act,
pari-mutuel wagering is conducted under the Illinois Horse
Racing Act of 1975, or sports wagering is conducted under this
Act.
"Official league data" means statistics, results,
outcomes, and other data related to a sports event obtained
pursuant to an agreement with the relevant sports governing
body, or an entity expressly authorized by the sports
governing body to provide such information to licensees, that
authorizes the use of such data for determining the outcome of
tier 2 sports wagers on such sports events.
"Organization licensee" has the meaning given to that term
in the Illinois Horse Racing Act of 1975.
"Owners licensee" means the holder of an owners license
under the Illinois Gambling Act.
"Person" means an individual, partnership, committee,
association, corporation, or any other organization or group
of persons.
"Personal biometric data" means an athlete's information
derived from DNA, heart rate, blood pressure, perspiration
rate, internal or external body temperature, hormone levels,
glucose levels, hydration levels, vitamin levels, bone
density, muscle density, and sleep patterns.
"Prohibited conduct" includes any statement, action, and
other communication intended to influence, manipulate, or
control a betting outcome of a sporting contest or of any

SB3019 Enrolled - 1339 - LRB104 20255 HLH 33706 b
individual occurrence or performance in a sporting contest in
exchange for financial gain or to avoid financial or physical
harm. "Prohibited conduct" includes statements, actions, and
communications made to a covered person by a third party, such
as a family member or through social media. "Prohibited
conduct" does not include statements, actions, or
communications made or sanctioned by a team or sports
governing body.
"Qualified applicant" means an applicant for a license
under this Act whose application meets the mandatory minimum
qualification criteria as required by the Board.
"Sporting contest" means a sports event or game on which
the State allows sports wagering to occur under this Act.
"Sports event" means a professional sport or athletic
event, a collegiate sport or athletic event, a motor race
event, or any other event or competition of relative skill
authorized by the Board under this Act.
"Sports facility" means a facility that hosts sports
events and holds a seating capacity greater than 17,000
persons, except in a municipality with a population of more
than 1,000,000, a seating capacity greater than 10,000
persons.
"Sports governing body" means the organization that
prescribes final rules and enforces codes of conduct with
respect to a sports event and participants therein.
"Sports wagering" means accepting wagers on sports events

SB3019 Enrolled - 1340 - LRB104 20255 HLH 33706 b
or portions of sports events, or on the individual performance
statistics of athletes in a sports event or combination of
sports events, by any system or method of wagering, including,
but not limited to, in person or over the Internet through
websites and on mobile devices. "Sports wagering" includes,
but is not limited to, single-game bets, teaser bets, parlays,
over-under, moneyline, pools, exchange wagering, in-game
wagering, in-play bets, proposition bets, and straight bets.
"Sports wagering" does not include fantasy contests as that
term is defined in Section 25-120.1.
"Sports wagering account" means a financial record
established by a master sports wagering licensee for an
individual patron in which the patron may deposit and withdraw
funds for sports wagering and other authorized purchases and
to which the master sports wagering licensee may credit
winnings or other amounts due to that patron or authorized by
that patron.
"Tier 1 sports wager" means a sports wager that is
determined solely by the final score or final outcome of the
sports event and is placed before the sports event has begun.
"Tier 2 sports wager" means a sports wager that is not a
tier 1 sports wager.
"Wager" means a sum of money or thing of value risked on an
uncertain occurrence.
"Winning bidder" means a qualified applicant for a master
sports wagering license chosen through the competitive

SB3019 Enrolled - 1341 - LRB104 20255 HLH 33706 b
selection process under Section 25-45.
(Source: P.A. 101-31, eff. 6-28-19; 102-689, eff. 12-17-21.)
(230 ILCS 45/25-25)
Sec. 25-25. Sports wagering authorized.
(a) Notwithstanding any provision of law to the contrary,
the operation of sports wagering is only lawful when conducted
in accordance with the provisions of this Act and the rules of
the Illinois Gaming Board and the Department of the Lottery.
(b) A person placing a wager under this Act shall be at
least 21 years of age.
(c) A licensee under this Act may not accept a wager on a
minor league sports event.
(d) Except as otherwise provided in this Section, a
licensee under this Act may not accept a wager for a sports
event involving an Illinois collegiate team.
(d-5) Beginning on the effective date of this amendatory
Act of the 102nd General Assembly until July 1, 2024, a
licensee under this Act may accept a wager for a sports event
involving an Illinois collegiate team if:
(1) the wager is a tier 1 wager;
(2) the wager is not related to an individual
athlete's performance; and
(3) the wager is made in person instead of over the
Internet or through a mobile application.
(e) A licensee under this Act may only accept a wager from

SB3019 Enrolled - 1342 - LRB104 20255 HLH 33706 b
a person physically located in the State.
(f) Master sports wagering licensees may use any data
source for determining the results of all tier 1 sports
wagers.
(g) A sports governing body headquartered in the United
States may notify the Board that it desires to supply official
league data to master sports wagering licensees for
determining the results of tier 2 sports wagers. Such
notification shall be made in the form and manner as the Board
may require. If a sports governing body does not notify the
Board of its desire to supply official league data, a master
sports wagering licensee may use any data source for
determining the results of any and all tier 2 sports wagers on
sports contests for that sports governing body.
Within 30 days of a sports governing body notifying the
Board, master sports wagering licensees shall use only
official league data to determine the results of tier 2 sports
wagers on sports events sanctioned by that sports governing
body, unless: (1) the sports governing body or designee cannot
provide a feed of official league data to determine the
results of a particular type of tier 2 sports wager, in which
case master sports wagering licensees may use any data source
for determining the results of the applicable tier 2 sports
wager until such time as such data feed becomes available on
commercially reasonable terms; or (2) a master sports wagering
licensee can demonstrate to the Board that the sports

SB3019 Enrolled - 1343 - LRB104 20255 HLH 33706 b
governing body or its designee cannot provide a feed of
official league data to the master sports wagering licensee on
commercially reasonable terms. During the pendency of the
Board's determination, such master sports wagering licensee
may use any data source for determining the results of any and
all tier 2 sports wagers.
(h) A licensee under this Act may not accept wagers on a
kindergarten through 12th grade sports event.
(i) A licensee may offer pool sports wagering to State
patrons where State patrons compete against patrons located
outside of the State. In such cases, the pool must be expressly
permitted in all jurisdictions in which it is offered and must
comply with all laws, rules, and regulations in all
jurisdictions in which it is offered. The adjusted gross
sports wagering receipts of an interstate pool shall be
determined by the total value of all wagers placed in the State
less the proportional pro rata value of all winnings paid to
patrons. The pro rata value of all winnings shall be
determined by the ratio of the total value of all wagers placed
in the State divided by the total value of all wagers placed in
the pool, to the nearest .01%.
(Source: P.A. 102-689, eff. 12-17-21; 103-4, eff. 5-31-23.)
(230 ILCS 45/25-45)
Sec. 25-45. Master sports wagering license issued to an
online sports wagering operator.

SB3019 Enrolled - 1344 - LRB104 20255 HLH 33706 b
(a) The Board may issue master sports wagering licenses to
persons to conduct sports wagering over the Internet or
through a mobile application. The Board shall issue 3 master
sports wagering licenses to online sports wagering operators
for a nonrefundable license fee of $20,000,000 pursuant to an
open and competitive selection process. The master sports
wagering license issued under this Section may be renewed
every 4 years upon payment of a $1,000,000 renewal fee. To the
extent permitted by federal and State law, the Board shall
actively seek to achieve racial, ethnic, and geographic
diversity when issuing master sports wagering licenses under
this Section and encourage minority-owned businesses,
women-owned businesses, veteran-owned businesses, and
businesses owned by persons with disabilities to apply for
licensure.
For the purposes of this subsection (a), "minority-owned
business", "women-owned business", and "business owned by
persons with disabilities" have the meanings given to those
terms in Section 2 of the Business Enterprise for Minorities,
Women, and Persons with Disabilities Act.
(b) Applicants shall pay to the Board a nonrefundable
application fee in the amount of $250,000. The initial license
fee for a master sports wagering license issued to an online
sports wagering operator is $15,000,000. The master sports
wagering license is valid for 4 years. Applications for the
initial competitive selection occurring after the effective

SB3019 Enrolled - 1345 - LRB104 20255 HLH 33706 b
date of this Act shall be received by the Board within 540 days
after the first license is issued under this Act to qualify.
The Board shall announce the winning bidders for the initial
competitive selection within 630 days after the first license
is issued under this Act, and this time frame may be extended
at the discretion of the Board.
(c) A licensee may renew the master sports wagering
license for a period of 4 years by paying a $1,000,000 renewal
fee to the Board. The Board shall provide public notice of its
intent to solicit applications for master sports wagering
licenses under this Section by posting the notice, application
instructions, and materials on its website for at least 30
calendar days before the applications are due. Failure by an
applicant to submit all required information may result in the
application being disqualified. The Board may notify an
applicant that its application is incomplete and provide an
opportunity to cure by rule. Application instructions shall
include a brief overview of the selection process and how
applications are scored.
(d) A master sports wagering licensee may conduct sports
wagering over the Internet or through a mobile application. To
be eligible for a master sports wagering license under this
Section, an applicant must: (1) be at least 21 years of age;
(2) not have been convicted of a felony offense or a violation
of Article 28 of the Criminal Code of 1961 or the Criminal Code
of 2012 or a similar statute of any other jurisdiction; (3) not

SB3019 Enrolled - 1346 - LRB104 20255 HLH 33706 b
have been convicted of a crime involving dishonesty or moral
turpitude; (4) have demonstrated a level of skill or knowledge
that the Board determines to be necessary in order to operate
sports wagering; and (5) have met standards for the holding of
a license as adopted by rules of the Board.
The Board may adopt rules to establish additional
qualifications and requirements to preserve the integrity and
security of sports wagering in this State and to promote and
maintain a competitive sports wagering market. After the close
of the application period, the Board shall determine whether
the applications meet the mandatory minimum qualification
criteria and conduct a comprehensive, fair, and impartial
evaluation of all qualified applications.
(e) (Blank). The Board shall open all qualified
applications in a public forum and disclose the applicants'
names. The Board shall summarize the terms of the proposals
and make the summaries available to the public on its website.
(f) (Blank). Not more than 90 days after the publication
of the qualified applications, the Board shall identify the
winning bidders. In granting the licenses, the Board may give
favorable consideration to qualified applicants presenting
plans that provide for economic development and community
engagement. To the extent permitted by federal and State law,
the Board may give favorable consideration to qualified
applicants demonstrating commitment to diversity in the
workplace.

SB3019 Enrolled - 1347 - LRB104 20255 HLH 33706 b
(g) (Blank). Upon selection of the winning bidders, the
Board shall have a reasonable period of time to ensure
compliance with all applicable statutory and regulatory
criteria before issuing the licenses. If the Board determines
a winning bidder does not satisfy all applicable statutory and
regulatory criteria, the Board shall select another bidder
from the remaining qualified applicants.
(h) (Blank). Nothing in this Section is intended to confer
a property or other right, duty, privilege, or interest
entitling an applicant to an administrative hearing upon
denial of an application.
(i) (Blank). Upon issuance of a master sports wagering
license to a winning bidder, the information and plans
provided in the application become a condition of the license.
A master sports wagering licensee under this Section has a
duty to disclose any material changes to the application.
Failure to comply with the conditions or requirements in the
application may subject the master sports wagering licensee
under this Section to discipline, including, but not limited
to, fines, suspension, and revocation of its license, pursuant
to rules adopted by the Board.
(j) (Blank). The Board shall disseminate information about
the licensing process through media demonstrated to reach
large numbers of business owners and entrepreneurs who are
minorities, women, veterans, and persons with disabilities.
(k) (Blank). The Department of Commerce and Economic

SB3019 Enrolled - 1348 - LRB104 20255 HLH 33706 b
Opportunity, in conjunction with the Board, shall conduct
ongoing, thorough, and comprehensive outreach to businesses
owned by minorities, women, veterans, and persons with
disabilities about contracting and entrepreneurial
opportunities in sports wagering. This outreach shall include,
but not be limited to:
(1) cooperating and collaborating with other State
boards, commissions, and agencies; public and private
universities and community colleges; and local governments
to target outreach efforts; and
(2) working with organizations serving minorities,
women, and persons with disabilities to establish and
conduct training for employment in sports wagering.
(l) (Blank). The Board shall partner with the Department
of Labor, the Department of Financial and Professional
Regulation, and the Department of Commerce and Economic
Opportunity to identify employment opportunities within the
sports wagering industry for job seekers and dislocated
workers.
(m) By March 1, 2020, the Board shall prepare a request for
proposals to conduct a study of the online sports wagering
industry and market to determine whether there is a compelling
interest in implementing remedial measures, including the
application of the Business Enterprise Program under the
Business Enterprise for Minorities, Women, and Persons with
Disabilities Act or a similar program to assist minorities,

SB3019 Enrolled - 1349 - LRB104 20255 HLH 33706 b
women, and persons with disabilities in the sports wagering
industry.
As a part of the study, the Board shall evaluate race and
gender-neutral programs or other methods that may be used to
address the needs of minority and women applicants and
minority-owned and women-owned businesses seeking to
participate in the sports wagering industry. The Board shall
submit to the General Assembly and publish on its website the
results of this study by August 1, 2020.
If, as a result of the study conducted under this
subsection (m), the Board finds that there is a compelling
interest in implementing remedial measures, the Board may
adopt rules, including emergency rules, to implement remedial
measures, if necessary and to the extent permitted by State
and federal law, based on the findings of the study conducted
under this subsection (m).
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 45/25-100)
Sec. 25-100. Voluntary self-exclusion program for sports
wagering and fantasy contests. Any resident, or non-resident
if allowed to participate in sports wagering or fantasy
contests, may voluntarily prohibit himself or herself from
establishing a sports wagering account or fantasy contest
account with a licensee under this Act. The Board and
Department shall incorporate the voluntary self-exclusion

SB3019 Enrolled - 1350 - LRB104 20255 HLH 33706 b
program for sports wagering and fantasy contests into any
existing self-exclusion program that it operates on the
effective date of this Act.
(Source: P.A. 101-31, eff. 6-28-19.)
(230 ILCS 45/25-120 new)
Sec. 25-120. Fantasy contests; legislative intent. Fantasy
contests are legally distinct from sports wagering.
Nonetheless, the State seeks to ensure both public confidence
and trust in the credibility and integrity of fantasy
contests, as well as to protect the public health and general
welfare of the people of the State. Therefore, regulatory
provisions of this Act are designed to strictly regulate the
facilities, persons, associations, and practices related to
fantasy contest operations pursuant to the police powers of
the State, including comprehensive law enforcement
supervision.
(230 ILCS 45/25-120.1 new)
Sec. 25-120.1. Definitions. As used in Sections 25-120
through 25-120.8:
"Adjusted gross fantasy contest receipts" means the total
gross entry fees collected from fantasy contest participants
in the State, less the in-state participant pro rata share of
the total cash prizes paid to any participants in those
contests.

SB3019 Enrolled - 1351 - LRB104 20255 HLH 33706 b
"Entry fee" means a nonrefundable cash fee that is paid by
or on behalf of a participant, or any other entry method
obtained for monetary consideration by the participant and set
in advance by a fantasy contest operator granting the
participant the right to participate in a fantasy contest.
"Fantasy contest" means an online contest of skill between
2 or more participants with an entry fee where:
(1) the values of all prizes offered to a winning
participant are established and made known to the
participant in advance of the contest;
(2) all winning outcomes reflect the relative
knowledge and skill of the participant;
(3) the participant assembles, owns, or manages a
fictional entry or roster of actual professional or
amateur athletes, in real-world sports events, or other
event or competition of relative skill authorized by the
Board;
(4) a participant competes for prizes awarded by a
fantasy contest operator based on terms and conditions
published by the fantasy contest operator and made known
to the participant in advance of the contest;
(5) winning outcomes are determined solely by clearly
preestablished, objective scoring criteria based on one or
more statistical results of the performance of an
individual athlete, including, but not limited to, a
fantasy score; and

SB3019 Enrolled - 1352 - LRB104 20255 HLH 33706 b
(6) no winning outcome is entirely based on the score,
point spread, or any performance of any single actual team
or combination of teams or solely on any single
performance of an individual athlete or player in any
single actual event.
"Fantasy contest" does not include pool sports wagering
conducted in accordance with subsection (i) of Section 25-25
of the Sports Wagering Act, single-participant contests played
against a fantasy contest operator, or contests without an
entry fee.
"Fantasy contest operator" means a person or entity that
offers fantasy contests to members of the public. "Fantasy
contest operator" does not include an Internet service
provider or a provider of mobile data services merely as a
result of that entity's transporting general traffic that may
include a fantasy contest.
"Large fantasy contest operator" means a fantasy contest
operator that had more than 7,500 patrons over the preceding
365-day period.
"Participant" means an individual who participates in a
fantasy contest offered by a fantasy contest operator.
"Small fantasy contest operator" means a fantasy contest
operator that had 7,500 or fewer patrons over the preceding
365-day period.
(230 ILCS 45/25-120.2 new)

SB3019 Enrolled - 1353 - LRB104 20255 HLH 33706 b
Sec. 25-120.2. Board powers.
(a) The Board may regulate the conduct of fantasy contest
operators under this Act.
(b) The Board shall adopt any rules the Board considers
necessary for the successful implementation, administration,
and enforcement of this Act. Rules proposed by the Board may be
adopted as emergency rules under Section 5-45 of the Illinois
Administrative Procedure Act.
(c) The Board shall levy and collect all fees, surcharges,
civil penalties, and, on adjusted gross fantasy contest
receipts imposed under this Act, monthly taxes as follows:
(1) All application, licensing, and renewal fees
collected under this Act shall be deposited in the State
Gaming Fund.
(2) All taxes collected under Section 25-120.6 shall
be deposited into the State Gaming Fund.
(3) All civil penalties or fines levied under this
Section shall be deposited in accordance with the Illinois
Gambling Act.
(d) The Board may exercise any other powers necessary to
enforce the provisions of this Act that it regulates and the
rules of the Board.
(e) The Board and fantasy contest operator licensees may
cooperate with investigations conducted by law enforcement
agencies, including, but not limited to, providing and
facilitating the provision of account-level entry and

SB3019 Enrolled - 1354 - LRB104 20255 HLH 33706 b
participation information.
(230 ILCS 45/25-120.3 new)
Sec. 25-120.3. Licensure required.
(a) Except as otherwise provided in this Section, a person
may not offer fantasy contests in this State unless the person
is licensed by the Board as a fantasy contest operator. No
party other than an owner or key person of a licensee may
receive revenue share from the operation of fantasy contests
without holding a fantasy contest operator license. A person
that knowingly offers fantasy contests in violation of this
subsection is guilty of a Class 4 felony.
(b) A fantasy contest operator that was offering contests
to persons located in the State before the effective date of
this amendatory Act of the 104th General Assembly may continue
to offer contests to persons located in the State until 90 days
after the effective date of rules implementing this amendatory
Act of the 104th General Assembly. The Board shall issue a
temporary operating permit to a fantasy contest operator that
was offering contests to persons located in this State before
the effective date of this amendatory Act of the 104th General
Assembly if the fantasy contest operator files an application
for licensure with the Board and pays the required license
application fee within 90 days of the effective date of rules
implementing this amendatory Act of the 104th General
Assembly, subject to Board rules. A holder of a temporary

SB3019 Enrolled - 1355 - LRB104 20255 HLH 33706 b
operating permit may continue to offer fantasy sports contests
until a final licensing decision is made by the Board.
(c) The burden is upon each applicant to demonstrate the
applicant's suitability for licensure. An applicant for a
license issued under this Act shall submit an application to
the Board in the form the Board requires. Each person seeking
licensure shall submit to a background investigation conducted
by the Board with the assistance of the Illinois State Police
or other law enforcement.
(1) To the extent that the corporate structure of the
applicant allows, the background investigation shall
include any or all of the following as the Board deems
appropriate or as provided by rule for each category of
licensure:
(A) each beneficiary of a trust;
(B) each partner of a partnership;
(C) each member of a limited liability company;
(D) each director and officer of a publicly or
nonpublicly held corporation;
(E) each stockholder of a nonpublicly held
corporation;
(F) each stockholder of 5% or more of a publicly
held corporation; or
(G) each stockholder of 5% or more in a parent or
subsidiary corporation.
(2) Each applicant shall disclose the identity of

SB3019 Enrolled - 1356 - LRB104 20255 HLH 33706 b
every person, association, trust, corporation, or limited
liability company having a greater than 1% direct or
indirect pecuniary interest in the fantasy contest for
which the license is sought. If the disclosed entity is a
trust, the application shall disclose the names and
addresses of the beneficiaries; if a corporation, the
names and addresses of all stockholders and directors; if
a limited liability company, the names and addresses of
all members; or if a partnership, the names and addresses
of all partners, both general and limited.
(d) To be eligible for a fantasy contest operator license
under this Section, an applicant and its key persons must at
minimum:
(1) be at least 21 years of age;
(2) not have been convicted of a felony offense or a
violation of Article 28 of the Criminal Code of 1961 or the
Criminal Code of 2012 or a similar statute of any other
jurisdiction;
(3) not have been convicted of a crime involving
dishonesty or moral turpitude;
(4) have demonstrated a level of skill or knowledge
that the Board determines to be necessary in order to
operate fantasy contests; and
(5) have met standards for the holding of a license as
adopted by rules of the Board.
(e) No person may be licensed if that person has been found

SB3019 Enrolled - 1357 - LRB104 20255 HLH 33706 b
by the Board to:
(1) have a background, including a criminal record,
reputation, habits, social or business associations, or
prior activities that pose a threat to the public
interests of the State or to the security and integrity of
fantasy contest operations;
(2) create or enhance the dangers of unsuitable,
unfair, or illegal practices, methods, and activities in
the conduct of fantasy contest operations; or
(3) present questionable business practices and
financial arrangements incidental to the conduct of
fantasy contest operations.
(f) An applicant shall not be denied licensure on the
basis of having previously offered or conducted single-player
contests against the operator, so long as no such contests
were offered by the applicant after the effective date of this
amendatory Act of the 104th General Assembly.
(g) On receipt of a completed application and the required
fee, the Board shall conduct the necessary background
investigation to determine if the applicant meets the
qualifications for licensure. On completion of the necessary
background investigation, the Board shall either issue a
license or deny the application. The Board shall establish
procedures to conduct hearings for any person denied
licensure.
(h) The Board has designated 2 categories of fantasy

SB3019 Enrolled - 1358 - LRB104 20255 HLH 33706 b
contest operator, a large fantasy contest operator and a small
fantasy contest operator. A small fantasy contest operator
shall pay an application and initial license fee of $500 at the
time of application. A large fantasy contest operator shall
pay an application and initial license fee of $7,500 at the
time of application.
(i) The term of an initial license shall be 2 years.
(j) A large fantasy contest operator shall pay a fantasy
contest operator license renewal fee of $5,000 within 30 days
of the renewal of a license. A small fantasy contest operator
shall pay a fantasy contest operator license renewal fee of
$300 within 30 days of the renewal of a license. The license
shall be renewed every 2 years.
(230 ILCS 45/25-120.4 new)
Sec. 25-120.4. Conduct of contests.
(a) Any fantasy contest conducted under this Act does not
constitute gambling for any purpose, including under Article
28 of the Criminal Code of 1961 or the Criminal Code of 2012.
(b) A person participating in a fantasy contest under this
Act shall be at least 21 years of age.
(c) A licensee under this Act may only accept an entry from
a person physically located in the State. A fantasy contest
operator must use a geolocation system to ensure that a
participant is physically present in the State when
participating in the fantasy contest unless otherwise

SB3019 Enrolled - 1359 - LRB104 20255 HLH 33706 b
authorized by the Board.
(e) No athlete, competitor, referee, official, coach,
manager, medical professional, or athletic trainer or employee
or contractor of a team or athletic organization who has
access to nonpublic information concerning an athlete or team
may engage in fantasy contests involving an event or the
performance of an individual in an event in which the person is
participating or otherwise has access to nonpublic or
exclusive information.
(f) No key person or employee of a fantasy contest
operator licensee may participate in fantasy contests offered
by licensee.
(230 ILCS 45/25-120.5 new)
Sec. 25-120.5. Duties of licensees.
(a) Licensees shall comply with all applicable anti-money
laundering standards.
(b) Licensees have an affirmative duty to prevent underage
participation in fantasy contents. Licensees shall establish
technical and operational measures to prevent underage
participation in a fantasy contest.
(c) Licensees shall implement identity verification
procedures, consistent with modern best practices, to verify
an individual's personally identifiable information and can
detect potential prohibited participants.
(d) Licensees shall employ mechanisms on the operator's

SB3019 Enrolled - 1360 - LRB104 20255 HLH 33706 b
platform that are designed to detect and prevent unauthorized
accounts and to detect and prevent fraud, money laundering,
and collusion.
(e) Licensees shall implement geolocation technology to
verify that a participant is not accessing the platform from a
restricted jurisdiction.
(f) Licensees shall make all reasonable efforts to
promptly notify the Board of any information relating to:
(1) a confirmed breach of the relevant sport's
governing body's internal rules and codes of conduct
pertaining to participation in real-money fantasy
contests;
(2) any conduct that corrupts any outcome related to a
sports event or sports events for purposes of financial
gain, including match fixing; and
(3) suspected illegal activities, including use of
funds derived from illegal activity, entries to conceal or
launder funds derived from illegal activity,
multi-accounting, and using false identification.
(230 ILCS 45/25-120.6 new)
Sec. 25-120.6. Audits and recordkeeping.
(a) Licensees shall contract with a certified public
accountant to conduct an annual independent audit consistent
with generally accepted accounting principles and any
additional standards adopted by the Board.

SB3019 Enrolled - 1361 - LRB104 20255 HLH 33706 b
(b) A licensee's fantasy contest platform must be tested
and certified by an independent outside testing laboratory
approved by the Board prior to commencement of fantasy
contests under this Act. The licensee shall have the fantasy
contest platform re-tested and certified on an annual basis.
(c) Each licensee shall maintain in a place, secure from
theft, loss, or destruction, adequate records of business
operations that shall be made available to the Board upon
request. These records shall be held for at least as long as
prescribed by the records retention schedule published by the
Board, or longer if otherwise prescribed by general accounting
and auditing procedures, litigation needs, or State or federal
law. These records shall be maintained in a manner accessible
to the Board or in a digital format prescribed by the Board.
(230 ILCS 45/25-120.7 new)
Sec. 25-120.7. Tax. Beginning on July 1, 2026, and for
each 12-month period thereafter, for the privilege of holding
a license to operate fantasy contests under this Act, this
State shall impose a privilege tax of 15% on the fantasy
contest operator licensee's adjusted gross fantasy contest
receipts.
(230 ILCS 45/25-120.8 new)
Sec. 25-120.8. Responsible gaming.
(a) Each fantasy contest operator shall include a

SB3019 Enrolled - 1362 - LRB104 20255 HLH 33706 b
statement regarding obtaining assistance with gambling
problems, the text of which shall be determined by rule by the
Department of Human Services, on the licensee's portal,
Internet website, or computer or mobile application.
(b) Any resident, or nonresident if allowed to participate
in fantasy contests, may voluntarily prohibit themselves from
establishing an account with a licensee under this Act. The
Board shall incorporate the voluntary self-exclusion program
for fantasy contests into any existing self-exclusion program
that it operates on the effective date of this amendatory Act
of the 104th General Assembly.
Section 140-15. The Criminal Code of 2012 is amended by
changing Section 28-1 and 28-8 as follows:
(720 ILCS 5/28-1) (from Ch. 38, par. 28-1)
Sec. 28-1. Gambling.
(a) A person commits gambling when he or she:
(1) knowingly plays a game of chance or skill for
money or other thing of value, unless excepted in
subsection (b) of this Section;
(2) knowingly makes a wager upon the result of any
game, contest, or any political nomination, appointment or
election;
(3) knowingly operates, keeps, owns, uses, purchases,
exhibits, rents, sells, bargains for the sale or lease of,

SB3019 Enrolled - 1363 - LRB104 20255 HLH 33706 b
manufactures or distributes any gambling device;
(4) contracts to have or give himself or herself or
another the option to buy or sell, or contracts to buy or
sell, at a future time, any grain or other commodity
whatsoever, or any stock or security of any company, where
it is at the time of making such contract intended by both
parties thereto that the contract to buy or sell, or the
option, whenever exercised, or the contract resulting
therefrom, shall be settled, not by the receipt or
delivery of such property, but by the payment only of
differences in prices thereof; however, the issuance,
purchase, sale, exercise, endorsement or guarantee, by or
through a person registered with the Secretary of State
pursuant to Section 8 of the Illinois Securities Law of
1953, or by or through a person exempt from such
registration under said Section 8, of a put, call, or
other option to buy or sell securities which have been
registered with the Secretary of State or which are exempt
from such registration under Section 3 of the Illinois
Securities Law of 1953 is not gambling within the meaning
of this paragraph (4);
(5) knowingly owns or possesses any book, instrument
or apparatus by means of which bets or wagers have been, or
are, recorded or registered, or knowingly possesses any
money which he has received in the course of a bet or
wager;

SB3019 Enrolled - 1364 - LRB104 20255 HLH 33706 b
(6) knowingly sells pools upon the result of any game
or contest of skill or chance, political nomination,
appointment or election;
(7) knowingly sets up or promotes any lottery or
sells, offers to sell or transfers any ticket or share for
any lottery;
(8) knowingly sets up or promotes any policy game or
sells, offers to sell or knowingly possesses or transfers
any policy ticket, slip, record, document or other similar
device;
(9) knowingly drafts, prints or publishes any lottery
ticket or share, or any policy ticket, slip, record,
document or similar device, except for such activity
related to lotteries, bingo games and raffles authorized
by and conducted in accordance with the laws of Illinois
or any other state or foreign government;
(10) knowingly advertises any lottery or policy game,
except for such activity related to lotteries, bingo games
and raffles authorized by and conducted in accordance with
the laws of Illinois or any other state;
(11) knowingly transmits information as to wagers,
betting odds, or changes in betting odds by telephone,
telegraph, radio, semaphore or similar means; or knowingly
installs or maintains equipment for the transmission or
receipt of such information; except that nothing in this
subdivision (11) prohibits transmission or receipt of such

SB3019 Enrolled - 1365 - LRB104 20255 HLH 33706 b
information for use in news reporting of sporting events
or contests; or
(12) knowingly establishes, maintains, or operates an
Internet site that permits a person to play a game of
chance or skill for money or other thing of value by means
of the Internet or to make a wager upon the result of any
game, contest, political nomination, appointment, or
election by means of the Internet. This item (12) does not
apply to activities referenced in items (6), (6.1), (8),
(8.1), and (15) of subsection (b) of this Section.
(b) Participants in any of the following activities shall
not be convicted of gambling:
(1) Agreements to compensate for loss caused by the
happening of chance including without limitation contracts
of indemnity or guaranty and life or health or accident
insurance.
(2) Offers of prizes, award or compensation to the
actual contestants in any bona fide contest for the
determination of skill, speed, strength or endurance or to
the owners of animals or vehicles entered in such contest.
(3) Pari-mutuel betting as authorized by the law of
this State.
(4) Manufacture of gambling devices, including the
acquisition of essential parts therefor and the assembly
thereof, for transportation in interstate or foreign
commerce to any place outside this State when such

SB3019 Enrolled - 1366 - LRB104 20255 HLH 33706 b
transportation is not prohibited by any applicable Federal
law; or the manufacture, distribution, or possession of
video gaming terminals, as defined in the Video Gaming
Act, by manufacturers, distributors, and terminal
operators licensed to do so under the Video Gaming Act.
(5) The game commonly known as "bingo", when conducted
in accordance with the Bingo License and Tax Act.
(6) Lotteries when conducted by the State of Illinois
in accordance with the Illinois Lottery Law. This
exemption includes any activity conducted by the
Department of Revenue to sell lottery tickets pursuant to
the provisions of the Illinois Lottery Law and its rules.
(6.1) The purchase of lottery tickets through the
Internet for a lottery conducted by the State of Illinois
under the program established in Section 7.12 of the
Illinois Lottery Law.
(7) Possession of an antique slot machine that is
neither used nor intended to be used in the operation or
promotion of any unlawful gambling activity or enterprise.
For the purpose of this subparagraph (b)(7), an antique
slot machine is one manufactured 25 years ago or earlier.
(8) Raffles and poker runs when conducted in
accordance with the Raffles and Poker Runs Act.
(8.1) The purchase of raffle chances for a raffle
conducted in accordance with the Raffles and Poker Runs
Act.

SB3019 Enrolled - 1367 - LRB104 20255 HLH 33706 b
(9) Charitable games when conducted in accordance with
the Charitable Games Act.
(10) Pull tabs and jar games when conducted under the
Illinois Pull Tabs and Jar Games Act.
(11) Gambling games when authorized by the Illinois
Gambling Act.
(12) Video gaming terminal games at a licensed
establishment, licensed truck stop establishment, licensed
large truck stop establishment, licensed fraternal
establishment, or licensed veterans establishment when
conducted in accordance with the Video Gaming Act.
(13) Games of skill or chance where money or other
things of value can be won but no payment or purchase is
required to participate.
(14) Savings promotion raffles authorized under
Section 5g of the Illinois Banking Act, Section 7008 of
the Savings Bank Act, Section 42.7 of the Illinois Credit
Union Act, Section 5136B of the National Bank Act (12
U.S.C. 25a), or Section 4 of the Home Owners' Loan Act (12
U.S.C. 1463).
(15) Sports wagering when conducted in accordance with
the Sports Wagering Act.
(16) Fantasy contests conducted in accordance with
Sections 25-120 through 25-120.8 of the Sports Wagering
Act.
(c) Sentence.

SB3019 Enrolled - 1368 - LRB104 20255 HLH 33706 b
Gambling is a Class A misdemeanor. A second or subsequent
conviction under subsections (a)(3) through (a)(12), is a
Class 4 felony.
(d) Circumstantial evidence.
In prosecutions under this Section circumstantial evidence
shall have the same validity and weight as in any criminal
prosecution.
(Source: P.A. 101-31, Article 25, Section 25-915, eff.
6-28-19; 101-31, Article 35, Section 35-80, eff. 6-28-19;
101-109, eff. 7-19-19; 102-558, eff. 8-20-21.)
(720 ILCS 5/28-8) (from Ch. 38, par. 28-8)
Sec. 28-8. Gambling losses recoverable.
(a) Any person who by gambling shall lose to any other
person, any sum of money or thing of value, amounting to the
sum of $50 or more and shall pay or deliver the same or any
part thereof, may sue for and recover the money or other thing
of value, so lost and paid or delivered, in a civil action
against the winner thereof, with costs, in the circuit court.
No person who accepts from another person for transmission,
and transmits, either in his own name or in the name of such
other person, any order for any transaction to be made upon, or
who executes any order given to him by another person, or who
executes any transaction for his own account on, any regular
board of trade or commercial, commodity or stock exchange,
shall, under any circumstances, be deemed a "winner" of any

SB3019 Enrolled - 1369 - LRB104 20255 HLH 33706 b
moneys lost by such other person in or through any such
transactions.
(b) If within 6 months, such person who under the terms of
Subsection 28-8(a) is entitled to initiate action to recover
his losses does not in fact pursue his remedy, any person may
initiate a civil action against the winner. The court or the
jury, as the case may be, shall determine the amount of the
loss. After such determination, the court shall enter a
judgment of triple the amount so determined.
(c) Gambling losses as a result of gambling conducted on a
video gaming terminal licensed under the Video Gaming Act are
not recoverable under this Section.
(d) Losses as a result of participation in single-player
fantasy contests against a fantasy contest operator prior to
the effective date of this amendatory Act of the 104th General
Assembly are not recoverable under this Section.
(e) Losses as a result of participation in fantasy
contests conducted under Sections 25-120 through 25-120.8 of
the Sports Wagering Act are not recoverable under this
Section.
(Source: P.A. 98-31, eff. 6-24-13.)
ARTICLE 150
Section 150-5. The Illinois Lottery Law is amended by
changing Section 9.1 as follows:

SB3019 Enrolled - 1370 - LRB104 20255 HLH 33706 b
(20 ILCS 1605/9.1)
Sec. 9.1. Private manager and management agreement.
(a) As used in this Section:
"Offeror" means a person or group of persons that responds
to a request for qualifications under this Section.
"Request for qualifications" means all materials and
documents prepared by the Department to solicit the following
from offerors:
(1) Statements of qualifications.
(2) Proposals to enter into a management agreement,
including the identity of any prospective vendor or
vendors that the offeror intends to initially engage to
assist the offeror in performing its obligations under the
management agreement.
"Final offer" means the last proposal submitted by an
offeror in response to the request for qualifications,
including the identity of any prospective vendor or vendors
that the offeror intends to initially engage to assist the
offeror in performing its obligations under the management
agreement.
"Final offeror" means the offeror ultimately selected by
the Governor to be the private manager for the Lottery under
subsection (h) of this Section.
(b) By September 15, 2010, the Governor shall select a
private manager for the total management of the Lottery with

SB3019 Enrolled - 1371 - LRB104 20255 HLH 33706 b
integrated functions, such as lottery game design, supply of
goods and services, and advertising and as specified in this
Section.
(c) Pursuant to the terms of this subsection, the
Department shall endeavor to expeditiously terminate the
existing contracts in support of the Lottery in effect on July
13, 2009 (the effective date of Public Act 96-37) in
connection with the selection of the private manager. As part
of its obligation to terminate these contracts and select the
private manager, the Department shall establish a mutually
agreeable timetable to transfer the functions of existing
contractors to the private manager so that existing Lottery
operations are not materially diminished or impaired during
the transition. To that end, the Department shall do the
following:
(1) where such contracts contain a provision
authorizing termination upon notice, the Department shall
provide notice of termination to occur upon the mutually
agreed timetable for transfer of functions;
(2) upon the expiration of any initial term or renewal
term of the current Lottery contracts, the Department
shall not renew such contract for a term extending beyond
the mutually agreed timetable for transfer of functions;
or
(3) in the event any current contract provides for
termination of that contract upon the implementation of a

SB3019 Enrolled - 1372 - LRB104 20255 HLH 33706 b
contract with the private manager, the Department shall
perform all necessary actions to terminate the contract on
the date that coincides with the mutually agreed timetable
for transfer of functions.
If the contracts to support the current operation of the
Lottery in effect on July 13, 2009 (the effective date of
Public Act 96-34) are not subject to termination as provided
for in this subsection (c), then the Department may include a
provision in the contract with the private manager specifying
a mutually agreeable methodology for incorporation.
(c-5) The Department shall include provisions in the
management agreement whereby the private manager shall, for a
fee, and pursuant to a contract negotiated with the Department
(the "Employee Use Contract"), utilize the services of current
Department employees to assist in the administration and
operation of the Lottery. The Department shall be the employer
of all such bargaining unit employees assigned to perform such
work for the private manager, and such employees shall be
State employees, as defined by the Personnel Code. Department
employees shall operate under the same employment policies,
rules, regulations, and procedures, as other employees of the
Department. In addition, neither historical representation
rights under the Illinois Public Labor Relations Act, nor
existing collective bargaining agreements, shall be disturbed
by the management agreement with the private manager for the
management of the Lottery.

SB3019 Enrolled - 1373 - LRB104 20255 HLH 33706 b
(d) The management agreement with the private manager
shall include all of the following:
(1) A term not to exceed 13 10 years, including any
renewals.
(2) A provision specifying that the Department:
(A) shall exercise actual control over all
significant business decisions;
(A-5) has the authority to direct or countermand
operating decisions by the private manager at any
time;
(B) has ready access at any time to information
regarding Lottery operations;
(C) has the right to demand and receive
information from the private manager concerning any
aspect of the Lottery operations at any time; and
(D) retains ownership of all trade names,
trademarks, and intellectual property associated with
the Lottery.
(3) A provision imposing an affirmative duty on the
private manager to provide the Department with material
information and with any information the private manager
reasonably believes the Department would want to know to
enable the Department to conduct the Lottery.
(4) A provision requiring the private manager to
provide the Department with advance notice of any
operating decision that bears significantly on the public

SB3019 Enrolled - 1374 - LRB104 20255 HLH 33706 b
interest, including, but not limited to, decisions on the
kinds of games to be offered to the public and decisions
affecting the relative risk and reward of the games being
offered, so the Department has a reasonable opportunity to
evaluate and countermand that decision.
(5) A provision providing for compensation of the
private manager that may consist of, among other things, a
fee for services and a performance based bonus as
consideration for managing the Lottery, including terms
that may provide the private manager with an increase in
compensation if Lottery revenues grow by a specified
percentage in a given year.
(6) (Blank).
(7) A provision requiring the deposit of all Lottery
proceeds to be deposited into the State Lottery Fund
except as otherwise provided in Section 20 of this Act.
(8) A provision requiring the private manager to
locate its principal office within the State.
(8-5) A provision encouraging that at least 20% of the
cost of contracts entered into for goods and services by
the private manager in connection with its management of
the Lottery, other than contracts with sales agents or
technical advisors, be awarded to businesses that are a
minority-owned business, a women-owned business, or a
business owned by a person with disability, as those terms
are defined in the Business Enterprise for Minorities,

SB3019 Enrolled - 1375 - LRB104 20255 HLH 33706 b
Women, and Persons with Disabilities Act.
(9) A requirement that so long as the private manager
complies with all the conditions of the agreement under
the oversight of the Department, the private manager shall
have the following duties and obligations with respect to
the management of the Lottery:
(A) The right to use equipment and other assets
used in the operation of the Lottery.
(B) The rights and obligations under contracts
with retailers and vendors.
(C) The implementation of a comprehensive security
program by the private manager.
(D) The implementation of a comprehensive system
of internal audits.
(E) The implementation of a program by the private
manager to curb compulsive gambling by persons playing
the Lottery.
(F) A system for determining (i) the type of
Lottery games, (ii) the method of selecting winning
tickets, (iii) the manner of payment of prizes to
holders of winning tickets, (iv) the frequency of
drawings of winning tickets, (v) the method to be used
in selling tickets, (vi) a system for verifying the
validity of tickets claimed to be winning tickets,
(vii) the basis upon which retailer commissions are
established by the manager, and (viii) minimum

SB3019 Enrolled - 1376 - LRB104 20255 HLH 33706 b
payouts.
(10) A requirement that advertising and promotion must
be consistent with Section 7.8a of this Act.
(11) A requirement that the private manager market the
Lottery to those residents who are new, infrequent, or
lapsed players of the Lottery, especially those who are
most likely to make regular purchases on the Internet as
permitted by law.
(12) A code of ethics for the private manager's
officers and employees.
(13) A requirement that the Department monitor and
oversee the private manager's practices and take action
that the Department considers appropriate to ensure that
the private manager is in compliance with the terms of the
management agreement, while allowing the manager, unless
specifically prohibited by law or the management
agreement, to negotiate and sign its own contracts with
vendors.
(14) A provision requiring the private manager to
periodically file, at least on an annual basis,
appropriate financial statements in a form and manner
acceptable to the Department.
(15) Cash reserves requirements.
(16) Procedural requirements for obtaining the prior
approval of the Department when a management agreement or
an interest in a management agreement is sold, assigned,

SB3019 Enrolled - 1377 - LRB104 20255 HLH 33706 b
transferred, or pledged as collateral to secure financing.
(17) Grounds for the termination of the management
agreement by the Department or the private manager.
(18) Procedures for amendment of the agreement.
(19) A provision requiring the private manager to
engage in an open and competitive bidding process for any
procurement having a cost in excess of $50,000 that is not
a part of the private manager's final offer. The process
shall favor the selection of a vendor deemed to have
submitted a proposal that provides the Lottery with the
best overall value. The process shall not be subject to
the provisions of the Illinois Procurement Code, unless
specifically required by the management agreement.
(20) The transition of rights and obligations,
including any associated equipment or other assets used in
the operation of the Lottery, from the manager to any
successor manager of the lottery, including the
Department, following the termination of or foreclosure
upon the management agreement.
(21) Right of use of copyrights, trademarks, and
service marks held by the Department in the name of the
State. The agreement must provide that any use of them by
the manager shall only be for the purpose of fulfilling
its obligations under the management agreement during the
term of the agreement.
(22) The disclosure of any information requested by

SB3019 Enrolled - 1378 - LRB104 20255 HLH 33706 b
the Department to enable it to comply with the reporting
requirements and information requests provided for under
subsection (p) of this Section.
(e) Notwithstanding any other law to the contrary, the
Department shall select a private manager through a
competitive request for qualifications process consistent with
Section 20-35 of the Illinois Procurement Code, which shall
take into account:
(1) the offeror's ability to market the Lottery to
those residents who are new, infrequent, or lapsed players
of the Lottery, especially those who are most likely to
make regular purchases on the Internet;
(2) the offeror's ability to address the State's
concern with the social effects of gambling on those who
can least afford to do so;
(3) the offeror's ability to provide the most
successful management of the Lottery for the benefit of
the people of the State based on current and past business
practices or plans of the offeror; and
(4) the offeror's poor or inadequate past performance
in servicing, equipping, operating or managing a lottery
on behalf of Illinois, another State or foreign government
and attracting persons who are not currently regular
players of a lottery.
(f) The Department may retain the services of an advisor
or advisors with significant experience in financial services

SB3019 Enrolled - 1379 - LRB104 20255 HLH 33706 b
or the management, operation, and procurement of goods,
services, and equipment for a government-run lottery to assist
in the preparation of the terms of the request for
qualifications and selection of the private manager. Any
prospective advisor seeking to provide services under this
subsection (f) shall disclose any material business or
financial relationship during the past 3 years with any
potential offeror, or with a contractor or subcontractor
presently providing goods, services, or equipment to the
Department to support the Lottery. The Department shall
evaluate the material business or financial relationship of
each prospective advisor. The Department shall not select any
prospective advisor with a substantial business or financial
relationship that the Department deems to impair the
objectivity of the services to be provided by the prospective
advisor. During the course of the advisor's engagement by the
Department, and for a period of one year thereafter, the
advisor shall not enter into any business or financial
relationship with any offeror or any vendor identified to
assist an offeror in performing its obligations under the
management agreement. Any advisor retained by the Department
shall be disqualified from being an offeror. The Department
shall not include terms in the request for qualifications that
provide a material advantage whether directly or indirectly to
any potential offeror, or any contractor or subcontractor
presently providing goods, services, or equipment to the

SB3019 Enrolled - 1380 - LRB104 20255 HLH 33706 b
Department to support the Lottery, including terms contained
in previous responses to requests for proposals or
qualifications submitted to Illinois, another State or foreign
government when those terms are uniquely associated with a
particular potential offeror, contractor, or subcontractor.
The request for proposals offered by the Department on
December 22, 2008 as "LOT08GAMESYS" and reference number
"22016176" is declared void.
(g) The Department shall select at least 2 offerors as
finalists to potentially serve as the private manager no later
than August 9, 2010. Upon making preliminary selections, the
Department shall schedule a public hearing on the finalists'
proposals and provide public notice of the hearing at least 7
calendar days before the hearing. The notice must include all
of the following:
(1) The date, time, and place of the hearing.
(2) The subject matter of the hearing.
(3) A brief description of the management agreement to
be awarded.
(4) The identity of the offerors that have been
selected as finalists to serve as the private manager.
(5) The address and telephone number of the
Department.
(h) At the public hearing, the Department shall (i)
provide sufficient time for each finalist to present and
explain its proposal to the Department and the Governor or the

SB3019 Enrolled - 1381 - LRB104 20255 HLH 33706 b
Governor's designee, including an opportunity to respond to
questions posed by the Department, Governor, or designee and
(ii) allow the public and non-selected offerors to comment on
the presentations. The Governor or a designee shall attend the
public hearing. After the public hearing, the Department shall
have 14 calendar days to recommend to the Governor whether a
management agreement should be entered into with a particular
finalist. After reviewing the Department's recommendation, the
Governor may accept or reject the Department's recommendation,
and shall select a final offeror as the private manager by
publication of a notice in the Illinois Procurement Bulletin
on or before September 15, 2010. The Governor shall include in
the notice a detailed explanation and the reasons why the
final offeror is superior to other offerors and will provide
management services in a manner that best achieves the
objectives of this Section. The Governor shall also sign the
management agreement with the private manager.
(i) Any action to contest the private manager selected by
the Governor under this Section must be brought within 7
calendar days after the publication of the notice of the
designation of the private manager as provided in subsection
(h) of this Section.
(j) The Lottery shall remain, for so long as a private
manager manages the Lottery in accordance with provisions of
this Act, a Lottery conducted by the State, and the State shall
not be authorized to sell or transfer the Lottery to a third

SB3019 Enrolled - 1382 - LRB104 20255 HLH 33706 b
party.
(k) Any tangible personal property used exclusively in
connection with the lottery that is owned by the Department
and leased to the private manager shall be owned by the
Department in the name of the State and shall be considered to
be public property devoted to an essential public and
governmental function.
(l) The Department may exercise any of its powers under
this Section or any other law as necessary or desirable for the
execution of the Department's powers under this Section.
(m) Neither this Section nor any management agreement
entered into under this Section prohibits the General Assembly
from authorizing forms of gambling that are not in direct
competition with the Lottery. The forms of gambling authorized
by Public Act 101-31 constitute authorized forms of gambling
that are not in direct competition with the Lottery.
(n) The private manager shall be subject to a complete
investigation in the third, seventh, and tenth years of the
agreement (if the agreement is for a 10-year term) by the
Department in cooperation with the Auditor General to
determine whether the private manager has complied with this
Section and the management agreement. The private manager
shall bear the cost of an investigation or reinvestigation of
the private manager under this subsection.
(o) The powers conferred by this Section are in addition
and supplemental to the powers conferred by any other law. If

SB3019 Enrolled - 1383 - LRB104 20255 HLH 33706 b
any other law or rule is inconsistent with this Section,
including, but not limited to, provisions of the Illinois
Procurement Code, then this Section controls as to any
management agreement entered into under this Section. This
Section and any rules adopted under this Section contain full
and complete authority for a management agreement between the
Department and a private manager. No law, procedure,
proceeding, publication, notice, consent, approval, order, or
act by the Department or any other officer, Department,
agency, or instrumentality of the State or any political
subdivision is required for the Department to enter into a
management agreement under this Section. This Section contains
full and complete authority for the Department to approve any
contracts entered into by a private manager with a vendor
providing goods, services, or both goods and services to the
private manager under the terms of the management agreement,
including subcontractors of such vendors.
Upon receipt of a written request from the Chief
Procurement Officer, the Department shall provide to the Chief
Procurement Officer a complete and un-redacted copy of the
management agreement or any contract that is subject to the
Department's approval authority under this subsection (o). The
Department shall provide a copy of the agreement or contract
to the Chief Procurement Officer in the time specified by the
Chief Procurement Officer in his or her written request, but
no later than 5 business days after the request is received by

SB3019 Enrolled - 1384 - LRB104 20255 HLH 33706 b
the Department. The Chief Procurement Officer must retain any
portions of the management agreement or of any contract
designated by the Department as confidential, proprietary, or
trade secret information in complete confidence pursuant to
subsection (g) of Section 7 of the Freedom of Information Act.
The Department shall also provide the Chief Procurement
Officer with reasonable advance written notice of any contract
that is pending Department approval.
Notwithstanding any other provision of this Section to the
contrary, the Chief Procurement Officer shall adopt
administrative rules, including emergency rules, to establish
a procurement process to select a successor private manager if
a private management agreement has been terminated. The
selection process shall at a minimum take into account the
criteria set forth in items (1) through (4) of subsection (e)
of this Section and may include provisions consistent with
subsections (f), (g), (h), and (i) of this Section. The Chief
Procurement Officer shall also implement and administer the
adopted selection process upon the termination of a private
management agreement. The Department, after the Chief
Procurement Officer certifies that the procurement process has
been followed in accordance with the rules adopted under this
subsection (o), shall select a final offeror as the private
manager and sign the management agreement with the private
manager.
Through June 30, 2022, except as provided in Sections

SB3019 Enrolled - 1385 - LRB104 20255 HLH 33706 b
21.5, 21.6, 21.7, 21.8, 21.9, 21.10, 21.11, 21.12, and 21.13
of this Act and Section 25-70 of the Sports Wagering Act, the
Department shall distribute all proceeds of lottery tickets
and shares sold in the following priority and manner:
(1) The payment of prizes and retailer bonuses.
(2) The payment of costs incurred in the operation and
administration of the Lottery, including the payment of
sums due to the private manager under the management
agreement with the Department.
(3) On the last day of each month or as soon thereafter
as possible, the State Comptroller shall direct and the
State Treasurer shall transfer from the State Lottery Fund
to the Common School Fund an amount that is equal to the
proceeds transferred in the corresponding month of fiscal
year 2009, as adjusted for inflation, to the Common School
Fund.
(4) On or before September 30 of each fiscal year,
deposit any estimated remaining proceeds from the prior
fiscal year, subject to payments under items (1), (2), and
(3), into the Capital Projects Fund. Beginning in fiscal
year 2019, the amount deposited shall be increased or
decreased each year by the amount the estimated payment
differs from the amount determined from each year-end
financial audit. Only remaining net deficits from prior
fiscal years may reduce the requirement to deposit these
funds, as determined by the annual financial audit.

SB3019 Enrolled - 1386 - LRB104 20255 HLH 33706 b
Beginning July 1, 2022, the Department shall distribute
all proceeds of lottery tickets and shares sold in the manner
and priority described in Section 9.3 of this Act, except that
the Department shall make the deposit into the Capital
Projects Fund that would have occurred under item (4) of this
subsection (o) on or before September 30, 2022, but for the
changes made to this subsection by Public Act 102-699.
(p) The Department shall be subject to the following
reporting and information request requirements:
(1) the Department shall submit written quarterly
reports to the Governor and the General Assembly on the
activities and actions of the private manager selected
under this Section;
(2) upon request of the Chief Procurement Officer, the
Department shall promptly produce information related to
the procurement activities of the Department and the
private manager requested by the Chief Procurement
Officer; the Chief Procurement Officer must retain
confidential, proprietary, or trade secret information
designated by the Department in complete confidence
pursuant to subsection (g) of Section 7 of the Freedom of
Information Act; and
(3) at least 30 days prior to the beginning of the
Department's fiscal year, the Department shall prepare an
annual written report on the activities of the private
manager selected under this Section and deliver that

SB3019 Enrolled - 1387 - LRB104 20255 HLH 33706 b
report to the Governor and General Assembly.
(Source: P.A. 101-31, eff. 6-28-19; 101-81, eff. 7-12-19;
101-561, eff. 8-23-19; 102-558, eff. 8-20-21; 102-699, eff.
4-19-22; 102-1115, eff. 1-9-23.)
ARTICLE 155
Section 155-5. The Retailers' Occupation Tax Act is
amended by changing Section 3 as follows:
(35 ILCS 120/3)
(Text of Section before amendment by P.A. 104-457)
Sec. 3. Except as provided in this Section, on or before
the twentieth day of each calendar month, every person engaged
in the business of selling, which, on and after January 1,
2025, includes leasing, tangible personal property at retail
in this State during the preceding calendar month shall file a
return with the Department, stating:
1. The name of the seller;
2. His residence address and the address of his
principal place of business and the address of the
principal place of business (if that is a different
address) from which he engages in the business of selling
tangible personal property at retail in this State;
3. Total amount of receipts received by him during the
preceding calendar month or quarter, as the case may be,

SB3019 Enrolled - 1388 - LRB104 20255 HLH 33706 b
from sales of tangible personal property, and from
services furnished, by him during such preceding calendar
month or quarter;
4. Total amount received by him during the preceding
calendar month or quarter on charge and time sales of
tangible personal property, and from services furnished,
by him prior to the month or quarter for which the return
is filed;
5. Deductions allowed by law;
6. Gross receipts which were received by him during
the preceding calendar month or quarter and upon the basis
of which the tax is imposed, including gross receipts on
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
food consisting of or infused with adult use cannabis,
soft drinks, and food that has been prepared for immediate
consumption) which were received during the preceding
calendar month or quarter and upon which tax would have
been due but for the 0% rate imposed under Public Act
102-700;
7. The amount of credit provided in Section 2d of this
Act;
8. The amount of tax due, including the amount of tax
that would have been due on food for human consumption
that is to be consumed off the premises where it is sold
(other than alcoholic beverages, food consisting of or

SB3019 Enrolled - 1389 - LRB104 20255 HLH 33706 b
infused with adult use cannabis, soft drinks, and food
that has been prepared for immediate consumption) but for
the 0% rate imposed under Public Act 102-700;
9. The signature of the taxpayer; and
10. Such other reasonable information as the
Department may require.
In the case of leases, except as otherwise provided in
this Act, the lessor must remit for each tax return period only
the tax applicable to that part of the selling price actually
received during such tax return period.
On and after January 1, 2018, except for returns required
to be filed prior to January 1, 2023 for motor vehicles,
watercraft, aircraft, and trailers that are required to be
registered with an agency of this State, with respect to
retailers whose annual gross receipts average $20,000 or more,
all returns required to be filed pursuant to this Act shall be
filed electronically. On and after January 1, 2023, with
respect to retailers whose annual gross receipts average
$20,000 or more, all returns required to be filed pursuant to
this Act, including, but not limited to, returns for motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State, shall be filed
electronically. Retailers who demonstrate that they do not
have access to the Internet or demonstrate hardship in filing
electronically may petition the Department to waive the
electronic filing requirement.

SB3019 Enrolled - 1390 - LRB104 20255 HLH 33706 b
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Each return shall be accompanied by the statement of
prepaid tax issued pursuant to Section 2e for which credit is
claimed.
Prior to October 1, 2003 and on and after September 1,
2004, a retailer may accept a Manufacturer's Purchase Credit
certification from a purchaser in satisfaction of Use Tax as
provided in Section 3-85 of the Use Tax Act if the purchaser
provides the appropriate documentation as required by Section
3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
certification, accepted by a retailer prior to October 1, 2003
and on and after September 1, 2004 as provided in Section 3-85
of the Use Tax Act, may be used by that retailer to satisfy
Retailers' Occupation Tax liability in the amount claimed in
the certification, not to exceed 6.25% of the receipts subject
to tax from a qualifying purchase. A Manufacturer's Purchase
Credit reported on any original or amended return filed under
this Act after October 20, 2003 for reporting periods prior to
September 1, 2004 shall be disallowed. Manufacturer's Purchase
Credit reported on annual returns due on or after January 1,
2005 will be disallowed for periods prior to September 1,
2004. No Manufacturer's Purchase Credit may be used after
September 30, 2003 through August 31, 2004 to satisfy any tax

SB3019 Enrolled - 1391 - LRB104 20255 HLH 33706 b
liability imposed under this Act, including any audit
liability.
Beginning on July 1, 2023 and through December 31, 2032, a
retailer may accept a Sustainable Aviation Fuel Purchase
Credit certification from an air common carrier-purchaser in
satisfaction of Use Tax on aviation fuel as provided in
Section 3-87 of the Use Tax Act if the purchaser provides the
appropriate documentation as required by Section 3-87 of the
Use Tax Act. A Sustainable Aviation Fuel Purchase Credit
certification accepted by a retailer in accordance with this
paragraph may be used by that retailer to satisfy Retailers'
Occupation Tax liability (but not in satisfaction of penalty
or interest) in the amount claimed in the certification, not
to exceed 6.25% of the receipts subject to tax from a sale of
aviation fuel. In addition, for a sale of aviation fuel to
qualify to earn the Sustainable Aviation Fuel Purchase Credit,
retailers must retain in their books and records a
certification from the producer of the aviation fuel that the
aviation fuel sold by the retailer and for which a sustainable
aviation fuel purchase credit was earned meets the definition
of sustainable aviation fuel under Section 3-87 of the Use Tax
Act. The documentation must include detail sufficient for the
Department to determine the number of gallons of sustainable
aviation fuel sold.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar

SB3019 Enrolled - 1392 - LRB104 20255 HLH 33706 b
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first 2 months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in the business of selling tangible
personal property at retail in this State;
3. The total amount of taxable receipts received by
him during the preceding calendar month from sales of
tangible personal property by him during such preceding
calendar month, including receipts from charge and time
sales, but less all deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due; and
6. Such other reasonable information as the Department
may require.
Every person engaged in the business of selling aviation
fuel at retail in this State during the preceding calendar
month shall, instead of reporting and paying tax as otherwise
required by this Section, report and pay such tax on a separate
aviation fuel tax return. The requirements related to the
return shall be as otherwise provided in this Section.
Notwithstanding any other provisions of this Act to the

SB3019 Enrolled - 1393 - LRB104 20255 HLH 33706 b
contrary, retailers selling aviation fuel shall file all
aviation fuel tax returns and shall make all aviation fuel tax
payments by electronic means in the manner and form required
by the Department. For purposes of this Section, "aviation
fuel" means jet fuel and aviation gasoline.
Beginning on October 1, 2003, any person who is not a
licensed distributor, importing distributor, or manufacturer,
as defined in the Liquor Control Act of 1934, but is engaged in
the business of selling, at retail, alcoholic liquor shall
file a statement with the Department of Revenue, in a format
and at a time prescribed by the Department, showing the total
amount paid for alcoholic liquor purchased during the
preceding month and such other information as is reasonably
required by the Department. The Department may adopt rules to
require that this statement be filed in an electronic or
telephonic format. Such rules may provide for exceptions from
the filing requirements of this paragraph. For the purposes of
this paragraph, the term "alcoholic liquor" shall have the
meaning prescribed in the Liquor Control Act of 1934.
Beginning on October 1, 2003, every distributor, importing
distributor, and manufacturer of alcoholic liquor as defined
in the Liquor Control Act of 1934, shall file a statement with
the Department of Revenue, no later than the 10th day of the
month for the preceding month during which transactions
occurred, by electronic means, showing the total amount of
gross receipts from the sale of alcoholic liquor sold or

SB3019 Enrolled - 1394 - LRB104 20255 HLH 33706 b
distributed during the preceding month to purchasers;
identifying the purchaser to whom it was sold or distributed;
the purchaser's tax registration number; and such other
information reasonably required by the Department. A
distributor, importing distributor, or manufacturer of
alcoholic liquor must personally deliver, mail, or provide by
electronic means to each retailer listed on the monthly
statement a report containing a cumulative total of that
distributor's, importing distributor's, or manufacturer's
total sales of alcoholic liquor to that retailer no later than
the 10th day of the month for the preceding month during which
the transaction occurred. The distributor, importing
distributor, or manufacturer shall notify the retailer as to
the method by which the distributor, importing distributor, or
manufacturer will provide the sales information. If the
retailer is unable to receive the sales information by
electronic means, the distributor, importing distributor, or
manufacturer shall furnish the sales information by personal
delivery or by mail. For purposes of this paragraph, the term
"electronic means" includes, but is not limited to, the use of
a secure Internet website, e-mail, or facsimile.
If a total amount of less than $1 is payable, refundable or
creditable, such amount shall be disregarded if it is less
than 50 cents and shall be increased to $1 if it is 50 cents or
more.
Notwithstanding any other provision of this Act to the

SB3019 Enrolled - 1395 - LRB104 20255 HLH 33706 b
contrary, retailers subject to tax on cannabis shall file all
cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall
make all payments required by rules of the Department by
electronic funds transfer. Beginning October 1, 1995, a
taxpayer who has an average monthly tax liability of $50,000
or more shall make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1,
2000, a taxpayer who has an annual tax liability of $200,000 or
more shall make all payments required by rules of the
Department by electronic funds transfer. The term "annual tax
liability" shall be the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year. The term "average monthly
tax liability" shall be the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year divided by 12. Beginning
on October 1, 2002, a taxpayer who has a tax liability in the

SB3019 Enrolled - 1396 - LRB104 20255 HLH 33706 b
amount set forth in subsection (b) of Section 2505-210 of the
Department of Revenue Law shall make all payments required by
rules of the Department by electronic funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make
payments by electronic funds transfer. All taxpayers required
to make payments by electronic funds transfer shall make those
payments for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those
payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
Any amount which is required to be shown or reported on any
return or other document under this Act shall, if such amount
is not a whole-dollar amount, be increased to the nearest
whole-dollar amount in any case where the fractional part of a
dollar is 50 cents or more, and decreased to the nearest
whole-dollar amount where the fractional part of a dollar is
less than 50 cents.
If the retailer is otherwise required to file a monthly

SB3019 Enrolled - 1397 - LRB104 20255 HLH 33706 b
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February, and March of a given
year being due by April 20 of such year; with the return for
April, May, and June of a given year being due by July 20 of
such year; with the return for July, August, and September of a
given year being due by October 20 of such year, and with the
return for October, November, and December of a given year
being due by January 20 of the following year.
If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
liability with the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January 20
of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act concerning
the time within which a retailer may file his return, in the
case of any retailer who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such retailer shall file a final return under this Act with the
Department not more than one month after discontinuing such
business.

SB3019 Enrolled - 1398 - LRB104 20255 HLH 33706 b
Where the same person has more than one business
registered with the Department under separate registrations
under this Act, such person may not file each return that is
due as a single return covering all such registered
businesses, but shall file separate returns for each such
registered business.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, except as otherwise provided in this
Section, every retailer selling this kind of tangible personal
property shall file, with the Department, upon a form to be
prescribed and supplied by the Department, a separate return
for each such item of tangible personal property which the
retailer sells, except that if, in the same transaction, (i) a
retailer of aircraft, watercraft, motor vehicles, or trailers
transfers more than one aircraft, watercraft, motor vehicle,
or trailer to another aircraft, watercraft, motor vehicle
retailer, or trailer retailer for the purpose of resale or
(ii) a retailer of aircraft, watercraft, motor vehicles, or
trailers transfers more than one aircraft, watercraft, motor
vehicle, or trailer to a purchaser for use as a qualifying
rolling stock as provided in Section 2-5 of this Act, then that
seller may report the transfer of all aircraft, watercraft,
motor vehicles, or trailers involved in that transaction to
the Department on the same uniform invoice-transaction
reporting return form. For purposes of this Section,

SB3019 Enrolled - 1399 - LRB104 20255 HLH 33706 b
"watercraft" means a Class 2, Class 3, or Class 4 watercraft as
defined in Section 3-2 of the Boat Registration and Safety
Act, a personal watercraft, or any boat equipped with an
inboard motor.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, every person who is engaged in the
business of leasing or renting such items and who, in
connection with such business, sells any such item to a
retailer for the purpose of resale is, notwithstanding any
other provision of this Section to the contrary, authorized to
meet the return-filing requirement of this Act by reporting
the transfer of all the aircraft, watercraft, motor vehicles,
or trailers transferred for resale during a month to the
Department on the same uniform invoice-transaction reporting
return form on or before the 20th of the month following the
month in which the transfer takes place. Notwithstanding any
other provision of this Act to the contrary, all returns filed
under this paragraph must be filed by electronic means in the
manner and form as required by the Department.
Any retailer who sells only motor vehicles, watercraft,
aircraft, or trailers that are required to be registered with
an agency of this State, so that all retailers' occupation tax
liability is required to be reported, and is reported, on such
transaction reporting returns and who is not otherwise
required to file monthly or quarterly returns, need not file

SB3019 Enrolled - 1400 - LRB104 20255 HLH 33706 b
monthly or quarterly returns. However, those retailers shall
be required to file returns on an annual basis.
The transaction reporting return, in the case of motor
vehicles or trailers that are required to be registered with
an agency of this State, shall be the same document as the
Uniform Invoice referred to in Section 5-402 of the Illinois
Vehicle Code and must show the name and address of the seller;
the name and address of the purchaser; the amount of the
selling price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 1 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling
price; the amount of tax due from the retailer with respect to
such transaction; the amount of tax collected from the
purchaser by the retailer on such transaction (or satisfactory
evidence that such tax is not due in that particular instance,
if that is claimed to be the fact); the place and date of the
sale; a sufficient identification of the property sold; such
other information as is required in Section 5-402 of the
Illinois Vehicle Code, and such other information as the
Department may reasonably require.
The transaction reporting return in the case of watercraft
or aircraft must show the name and address of the seller; the
name and address of the purchaser; the amount of the selling

SB3019 Enrolled - 1401 - LRB104 20255 HLH 33706 b
price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 1 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling
price; the amount of tax due from the retailer with respect to
such transaction; the amount of tax collected from the
purchaser by the retailer on such transaction (or satisfactory
evidence that such tax is not due in that particular instance,
if that is claimed to be the fact); the place and date of the
sale, a sufficient identification of the property sold, and
such other information as the Department may reasonably
require.
Such transaction reporting return shall be filed not later
than 20 days after the day of delivery of the item that is
being sold, but may be filed by the retailer at any time sooner
than that if he chooses to do so. The transaction reporting
return and tax remittance or proof of exemption from the
Illinois use tax may be transmitted to the Department by way of
the State agency with which, or State officer with whom the
tangible personal property must be titled or registered (if
titling or registration is required) if the Department and
such agency or State officer determine that this procedure
will expedite the processing of applications for title or
registration.

SB3019 Enrolled - 1402 - LRB104 20255 HLH 33706 b
With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the
Department shall issue, in the purchaser's name, a use tax
receipt (or a certificate of exemption if the Department is
satisfied that the particular sale is tax-exempt tax exempt)
which such purchaser may submit to the agency with which, or
State officer with whom, he must title or register the
tangible personal property that is involved (if titling or
registration is required) in support of such purchaser's
application for an Illinois certificate or other evidence of
title or registration to such tangible personal property.
No retailer's failure or refusal to remit tax under this
Act precludes a user, who has paid the proper tax to the
retailer, from obtaining his certificate of title or other
evidence of title or registration (if titling or registration
is required) upon satisfying the Department that such user has
paid the proper tax (if tax is due) to the retailer. The
Department shall adopt appropriate rules to carry out the
mandate of this paragraph.
If the user who would otherwise pay tax to the retailer
wants the transaction reporting return filed and the payment
of the tax or proof of exemption made to the Department before
the retailer is willing to take these actions and such user has
not paid the tax to the retailer, such user may certify to the

SB3019 Enrolled - 1403 - LRB104 20255 HLH 33706 b
fact of such delay by the retailer and may (upon the Department
being satisfied of the truth of such certification) transmit
the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to
the Department and obtain his tax receipt or exemption
determination, in which event the transaction reporting return
and tax remittance (if a tax payment was required) shall be
credited by the Department to the proper retailer's account
with the Department, but without the vendor's discount
provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the
same amount and in the same form in which it would be remitted
if the tax had been remitted to the Department by the retailer.
On and after January 1, 2025, with respect to the lease of
trailers, other than semitrailers as defined in Section 1-187
of the Illinois Vehicle Code, that are required to be
registered with an agency of this State and that are subject to
the tax on lease receipts under this Act, notwithstanding any
other provision of this Act to the contrary, for the purpose of
reporting and paying tax under this Act on those lease
receipts, lessors shall file returns in addition to and
separate from the transaction reporting return. Lessors shall
file those lease returns and make payment to the Department by
electronic means on or before the 20th day of each month
following the month, quarter, or year, as applicable, in which
lease receipts were received. All lease receipts received by

SB3019 Enrolled - 1404 - LRB104 20255 HLH 33706 b
the lessor from the lease of those trailers during the same
reporting period shall be reported and tax shall be paid on a
single return form to be prescribed by the Department.
Refunds made by the seller during the preceding return
period to purchasers, on account of tangible personal property
returned to the seller, shall be allowed as a deduction under
subdivision 5 of his monthly or quarterly return, as the case
may be, in case the seller had theretofore included the
receipts from the sale of such tangible personal property in a
return filed by him and had paid the tax imposed by this Act
with respect to such receipts.
Where the seller is a corporation, the return filed on
behalf of such corporation shall be signed by the president,
vice-president, secretary, or treasurer or by the properly
accredited agent of such corporation.
Where the seller is a limited liability company, the
return filed on behalf of the limited liability company shall
be signed by a manager, member, or properly accredited agent
of the limited liability company.
Except as provided in this Section, the retailer filing
the return under this Section shall, at the time of filing such
return, pay to the Department the amount of tax imposed by this
Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
on and after January 1, 1990, or $5 per calendar year,
whichever is greater, which is allowed to reimburse the
retailer for the expenses incurred in keeping records,

SB3019 Enrolled - 1405 - LRB104 20255 HLH 33706 b
preparing and filing returns, remitting the tax and supplying
data to the Department on request. A a certified service
provider, as defined in the Leveling the Playing Field for
Illinois Retail Act, filing the return under this Section on
behalf of a remote retailer or a retailer maintaining a place
of business in this State shall, at the time of such return,
pay to the Department the amount of tax imposed by this Act
less a discount of 1.75%. A remote retailer or a retailer
maintaining a place of business in this State using a
certified service provider to file a return on its behalf, as
provided in the Leveling the Playing Field for Illinois Retail
Act, is not eligible for the discount. Beginning with returns
due on or after January 1, 2025, the vendor's discount allowed
in this Section, the Service Occupation Tax Act, the Use Tax
Act, and the Service Use Tax Act, including any local tax
administered by the Department and reported on the same
return, shall not exceed $1,000 per month in the aggregate for
returns other than transaction returns filed during the month.
When determining the discount allowed under this Section,
retailers shall include the amount of tax that would have been
due at the 1% rate but for the 0% rate imposed under Public Act
102-700. When determining the discount allowed under this
Section, retailers shall include the amount of tax that would
have been due at the 6.25% rate but for the 1.25% rate imposed
on sales tax holiday items under Public Act 102-700. The
discount under this Section is not allowed for the 1.25%

SB3019 Enrolled - 1406 - LRB104 20255 HLH 33706 b
portion of taxes paid on aviation fuel that is subject to the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133. Any prepayment made pursuant to Section 2d of this Act
shall be included in the amount on which such discount is
computed. In the case of retailers who report and pay the tax
on a transaction by transaction basis, as provided in this
Section, such discount shall be taken with each such tax
remittance instead of when such retailer files his periodic
return, but, beginning with returns due on or after January 1,
2025, the vendor's discount allowed under this Section and the
Use Tax Act, including any local tax administered by the
Department and reported on the same transaction return, shall
not exceed $1,000 per month for all transaction returns filed
during the month. The discount allowed under this Section is
allowed only for returns that are filed in the manner required
by this Act. The Department may disallow the discount for
retailers whose certificate of registration is revoked at the
time the return is filed, but only if the Department's
decision to revoke the certificate of registration has become
final.
Before October 1, 2000, if the taxpayer's average monthly
tax liability to the Department under this Act, the Use Tax
Act, the Service Occupation Tax Act, and the Service Use Tax
Act, excluding any liability for prepaid sales tax to be
remitted in accordance with Section 2d of this Act, was
$10,000 or more during the preceding 4 complete calendar

SB3019 Enrolled - 1407 - LRB104 20255 HLH 33706 b
quarters, he shall file a return with the Department each
month by the 20th day of the month next following the month
during which such tax liability is incurred and shall make
payments to the Department on or before the 7th, 15th, 22nd and
last day of the month during which such liability is incurred.
On and after October 1, 2000, if the taxpayer's average
monthly tax liability to the Department under this Act, the
Use Tax Act, the Service Occupation Tax Act, and the Service
Use Tax Act, excluding any liability for prepaid sales tax to
be remitted in accordance with Section 2d of this Act, was
$20,000 or more during the preceding 4 complete calendar
quarters, he shall file a return with the Department each
month by the 20th day of the month next following the month
during which such tax liability is incurred and shall make
payment to the Department on or before the 7th, 15th, 22nd and
last day of the month during which such liability is incurred.
If the month during which such tax liability is incurred began
prior to January 1, 1985, each payment shall be in an amount
equal to 1/4 of the taxpayer's actual liability for the month
or an amount set by the Department not to exceed 1/4 of the
average monthly liability of the taxpayer to the Department
for the preceding 4 complete calendar quarters (excluding the
month of highest liability and the month of lowest liability
in such 4 quarter period). If the month during which such tax
liability is incurred begins on or after January 1, 1985 and
prior to January 1, 1987, each payment shall be in an amount

SB3019 Enrolled - 1408 - LRB104 20255 HLH 33706 b
equal to 22.5% of the taxpayer's actual liability for the
month or 27.5% of the taxpayer's liability for the same
calendar month of the preceding year. If the month during
which such tax liability is incurred begins on or after
January 1, 1987 and prior to January 1, 1988, each payment
shall be in an amount equal to 22.5% of the taxpayer's actual
liability for the month or 26.25% of the taxpayer's liability
for the same calendar month of the preceding year. If the month
during which such tax liability is incurred begins on or after
January 1, 1988, and prior to January 1, 1989, or begins on or
after January 1, 1996, each payment shall be in an amount equal
to 22.5% of the taxpayer's actual liability for the month or
25% of the taxpayer's liability for the same calendar month of
the preceding year. If the month during which such tax
liability is incurred begins on or after January 1, 1989, and
prior to January 1, 1996, each payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the
month or 25% of the taxpayer's liability for the same calendar
month of the preceding year or 100% of the taxpayer's actual
liability for the quarter monthly reporting period. The amount
of such quarter monthly payments shall be credited against the
final tax liability of the taxpayer's return for that month.
Before October 1, 2000, once applicable, the requirement of
the making of quarter monthly payments to the Department by
taxpayers having an average monthly tax liability of $10,000
or more as determined in the manner provided above shall

SB3019 Enrolled - 1409 - LRB104 20255 HLH 33706 b
continue until such taxpayer's average monthly liability to
the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the
month of lowest liability) is less than $9,000, or until such
taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $10,000. However, if a
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $10,000
threshold stated above, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status.
On and after October 1, 2000, once applicable, the requirement
of the making of quarter monthly payments to the Department by
taxpayers having an average monthly tax liability of $20,000
or more as determined in the manner provided above shall
continue until such taxpayer's average monthly liability to
the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the
month of lowest liability) is less than $19,000 or until such
taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $20,000. However, if a
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer

SB3019 Enrolled - 1410 - LRB104 20255 HLH 33706 b
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $20,000
threshold stated above, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status.
The Department shall change such taxpayer's reporting status
unless it finds that such change is seasonal in nature and not
likely to be long term. Quarter monthly payment status shall
be determined under this paragraph as if the rate reduction to
0% in Public Act 102-700 on food for human consumption that is
to be consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption) had not occurred. For quarter monthly
payments due under this paragraph on or after July 1, 2023 and
through June 30, 2024, "25% of the taxpayer's liability for
the same calendar month of the preceding year" shall be
determined as if the rate reduction to 0% in Public Act 102-700
had not occurred. Quarter monthly payment status shall be
determined under this paragraph as if the rate reduction to
1.25% in Public Act 102-700 on sales tax holiday items had not
occurred. For quarter monthly payments due on or after July 1,
2023 and through June 30, 2024, "25% of the taxpayer's
liability for the same calendar month of the preceding year"
shall be determined as if the rate reduction to 1.25% in Public
Act 102-700 on sales tax holiday items had not occurred. If any
such quarter monthly payment is not paid at the time or in the

SB3019 Enrolled - 1411 - LRB104 20255 HLH 33706 b
amount required by this Section, then the taxpayer shall be
liable for penalties and interest on the difference between
the minimum amount due as a payment and the amount of such
quarter monthly payment actually and timely paid, except
insofar as the taxpayer has previously made payments for that
month to the Department in excess of the minimum payments
previously due as provided in this Section. The Department
shall make reasonable rules and regulations to govern the
quarter monthly payment amount and quarter monthly payment
dates for taxpayers who file on other than a calendar monthly
basis.
The provisions of this paragraph apply before October 1,
2001. Without regard to whether a taxpayer is required to make
quarter monthly payments as specified above, any taxpayer who
is required by Section 2d of this Act to collect and remit
prepaid taxes and has collected prepaid taxes which average in
excess of $25,000 per month during the preceding 2 complete
calendar quarters, shall file a return with the Department as
required by Section 2f and shall make payments to the
Department on or before the 7th, 15th, 22nd and last day of the
month during which such liability is incurred. If the month
during which such tax liability is incurred began prior to
September 1, 1985 (the effective date of Public Act 84-221),
each payment shall be in an amount not less than 22.5% of the
taxpayer's actual liability under Section 2d. If the month
during which such tax liability is incurred begins on or after

SB3019 Enrolled - 1412 - LRB104 20255 HLH 33706 b
January 1, 1986, each payment shall be in an amount equal to
22.5% of the taxpayer's actual liability for the month or
27.5% of the taxpayer's liability for the same calendar month
of the preceding calendar year. If the month during which such
tax liability is incurred begins on or after January 1, 1987,
each payment shall be in an amount equal to 22.5% of the
taxpayer's actual liability for the month or 26.25% of the
taxpayer's liability for the same calendar month of the
preceding year. The amount of such quarter monthly payments
shall be credited against the final tax liability of the
taxpayer's return for that month filed under this Section or
Section 2f, as the case may be. Once applicable, the
requirement of the making of quarter monthly payments to the
Department pursuant to this paragraph shall continue until
such taxpayer's average monthly prepaid tax collections during
the preceding 2 complete calendar quarters is $25,000 or less.
If any such quarter monthly payment is not paid at the time or
in the amount required, the taxpayer shall be liable for
penalties and interest on such difference, except insofar as
the taxpayer has previously made payments for that month in
excess of the minimum payments previously due.
The provisions of this paragraph apply on and after
October 1, 2001. Without regard to whether a taxpayer is
required to make quarter monthly payments as specified above,
any taxpayer who is required by Section 2d of this Act to
collect and remit prepaid taxes and has collected prepaid

SB3019 Enrolled - 1413 - LRB104 20255 HLH 33706 b
taxes that average in excess of $20,000 per month during the
preceding 4 complete calendar quarters shall file a return
with the Department as required by Section 2f and shall make
payments to the Department on or before the 7th, 15th, 22nd,
and last day of the month during which the liability is
incurred. Each payment shall be in an amount equal to 22.5% of
the taxpayer's actual liability for the month or 25% of the
taxpayer's liability for the same calendar month of the
preceding year. The amount of the quarter monthly payments
shall be credited against the final tax liability of the
taxpayer's return for that month filed under this Section or
Section 2f, as the case may be. Once applicable, the
requirement of the making of quarter monthly payments to the
Department pursuant to this paragraph shall continue until the
taxpayer's average monthly prepaid tax collections during the
preceding 4 complete calendar quarters (excluding the month of
highest liability and the month of lowest liability) is less
than $19,000 or until such taxpayer's average monthly
liability to the Department as computed for each calendar
quarter of the 4 preceding complete calendar quarters is less
than $20,000. If any such quarter monthly payment is not paid
at the time or in the amount required, the taxpayer shall be
liable for penalties and interest on such difference, except
insofar as the taxpayer has previously made payments for that
month in excess of the minimum payments previously due.
If any payment provided for in this Section exceeds the

SB3019 Enrolled - 1414 - LRB104 20255 HLH 33706 b
taxpayer's liabilities under this Act, the Use Tax Act, the
Service Occupation Tax Act, and the Service Use Tax Act, as
shown on an original monthly return, the Department shall, if
requested by the taxpayer, issue to the taxpayer a credit
memorandum no later than 30 days after the date of payment. The
credit evidenced by such credit memorandum may be assigned by
the taxpayer to a similar taxpayer under this Act, the Use Tax
Act, the Service Occupation Tax Act, or the Service Use Tax
Act, in accordance with reasonable rules and regulations to be
prescribed by the Department. If no such request is made, the
taxpayer may credit such excess payment against tax liability
subsequently to be remitted to the Department under this Act,
the Use Tax Act, the Service Occupation Tax Act, or the Service
Use Tax Act, in accordance with reasonable rules and
regulations prescribed by the Department. If the Department
subsequently determined that all or any part of the credit
taken was not actually due to the taxpayer, the taxpayer's
vendor's discount shall be reduced, if necessary, to reflect
the difference between the credit taken and that actually due,
and that taxpayer shall be liable for penalties and interest
on such difference.
If a retailer of motor fuel is entitled to a credit under
Section 2d of this Act which exceeds the taxpayer's liability
to the Department under this Act for the month for which the
taxpayer is filing a return, the Department shall issue the
taxpayer a credit memorandum for the excess.

SB3019 Enrolled - 1415 - LRB104 20255 HLH 33706 b
The net revenue realized at the 15% rate under either
Section 4 or Section 5 of this Act shall be deposited as
follows: (i) notwithstanding the provisions of this Section to
the contrary, the net revenue realized from the portion of the
rate in excess of 5% shall be deposited into the State and
Local Sales Tax Reform Fund; and (ii) the net revenue realized
from the 5% portion of the rate shall be deposited as provided
in this Section for the 5% portion of the 6.25% general rate
imposed under this Act.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund, a special fund in the
State treasury which is hereby created, the net revenue
realized for the preceding month from the 1% tax imposed under
this Act.
Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund, a special
fund in the State treasury which is hereby created, 4% of the
net revenue realized for the preceding month from the 6.25%
general rate other than aviation fuel sold on or after
December 1, 2019. This exception for aviation fuel only
applies for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the County and Mass Transit District Fund 20% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol. If, in any

SB3019 Enrolled - 1416 - LRB104 20255 HLH 33706 b
month, the tax on sales tax holiday items, as defined in
Section 2-8, is imposed at the rate of 1.25%, then the
Department shall pay 20% of the net revenue realized for that
month from the 1.25% rate on the selling price of sales tax
holiday items into the County and Mass Transit District Fund.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the net revenue
realized for the preceding month from the 6.25% general rate
on the selling price of tangible personal property other than
aviation fuel sold on or after December 1, 2019. This
exception for aviation fuel only applies for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be
required for refunds of the 20% portion of the tax on aviation
fuel under this Act, which amount shall be deposited into the
Aviation Fuel Sales Tax Refund Fund. The Department shall only
pay moneys into the State Aviation Program Fund and the
Aviation Fuel Sales Tax Refund Fund under this Act for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall

SB3019 Enrolled - 1417 - LRB104 20255 HLH 33706 b
pay into the Local Government Tax Fund 80% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of motor fuel and gasohol. If, in any month, the
tax on sales tax holiday items, as defined in Section 2-8, is
imposed at the rate of 1.25%, then the Department shall pay 80%
of the net revenue realized for that month from the 1.25% rate
on the selling price of sales tax holiday items into the Local
Government Tax Fund.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2011, each month the Department shall
pay into the Clean Air Act Permit Fund 80% of the net revenue
realized for the preceding month from the 6.25% general rate
on the selling price of sorbents used in Illinois in the
process of sorbent injection as used to comply with the
Environmental Protection Act or the federal Clean Air Act, but
the total payment into the Clean Air Act Permit Fund under this
Act and the Use Tax Act shall not exceed $2,000,000 in any
fiscal year.
Beginning July 1, 2013, each month the Department shall
pay into the Underground Storage Tank Fund from the proceeds

SB3019 Enrolled - 1418 - LRB104 20255 HLH 33706 b
collected under this Act, the Use Tax Act, the Service Use Tax
Act, and the Service Occupation Tax Act an amount equal to the
average monthly deficit in the Underground Storage Tank Fund
during the prior year, as certified annually by the Illinois
Environmental Protection Agency, but the total payment into
the Underground Storage Tank Fund under this Act, the Use Tax
Act, the Service Use Tax Act, and the Service Occupation Tax
Act shall not exceed $18,000,000 in any State fiscal year. As
used in this paragraph, the "average monthly deficit" shall be
equal to the difference between the average monthly claims for
payment by the fund and the average monthly revenues deposited
into the fund, excluding payments made pursuant to this
paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, the Service
Use Tax Act, the Service Occupation Tax Act, and this Act, each
month the Department shall deposit $500,000 into the State
Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to this Act,

SB3019 Enrolled - 1419 - LRB104 20255 HLH 33706 b
Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
Act, and Section 9 of the Service Occupation Tax Act, such Acts
being hereinafter called the "Tax Acts" and such aggregate of
2.2% or 3.8%, as the case may be, of moneys being hereinafter
called the "Tax Act Amount", and (2) the amount transferred to
the Build Illinois Fund from the State and Local Sales Tax
Reform Fund shall be less than the Annual Specified Amount (as
hereinafter defined), an amount equal to the difference shall
be immediately paid into the Build Illinois Fund from other
moneys received by the Department pursuant to the Tax Acts;
the "Annual Specified Amount" means the amounts specified
below for fiscal years 1986 through 1993:
Fiscal Year Annual Specified Amount
1986 $54,800,000
1987 $76,650,000
1988 $80,480,000
1989 $88,510,000
1990 $115,330,000
1991 $145,470,000
1992 $182,730,000
1993 $206,520,000;
and means the Certified Annual Debt Service Requirement (as
defined in Section 13 of the Build Illinois Bond Act) or the
Tax Act Amount, whichever is greater, for fiscal year 1994 and
each fiscal year thereafter; and further provided, that if on
the last business day of any month the sum of (1) the Tax Act

SB3019 Enrolled - 1420 - LRB104 20255 HLH 33706 b
Amount required to be deposited into the Build Illinois Bond
Account in the Build Illinois Fund during such month and (2)
the amount transferred to the Build Illinois Fund from the
State and Local Sales Tax Reform Fund shall have been less than
1/12 of the Annual Specified Amount, an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and, further provided, that in no event shall the
payments required under the preceding proviso result in
aggregate payments into the Build Illinois Fund pursuant to
this clause (b) for any fiscal year in excess of the greater of
(i) the Tax Act Amount or (ii) the Annual Specified Amount for
such fiscal year. The amounts payable into the Build Illinois
Fund under clause (b) of the first sentence in this paragraph
shall be payable only until such time as the aggregate amount
on deposit under each trust indenture securing Bonds issued
and outstanding pursuant to the Build Illinois Bond Act is
sufficient, taking into account any future investment income,
to fully provide, in accordance with such indenture, for the
defeasance of or the payment of the principal of, premium, if
any, and interest on the Bonds secured by such indenture and on
any Bonds expected to be issued thereafter and all fees and
costs payable with respect thereto, all as certified by the
Director of the Bureau of the Budget (now Governor's Office of
Management and Budget). If on the last business day of any
month in which Bonds are outstanding pursuant to the Build

SB3019 Enrolled - 1421 - LRB104 20255 HLH 33706 b
Illinois Bond Act, the aggregate of moneys deposited into in
the Build Illinois Bond Account in the Build Illinois Fund in
such month shall be less than the amount required to be
transferred in such month from the Build Illinois Bond Account
to the Build Illinois Bond Retirement and Interest Fund
pursuant to Section 13 of the Build Illinois Bond Act, an
amount equal to such deficiency shall be immediately paid from
other moneys received by the Department pursuant to the Tax
Acts to the Build Illinois Fund; provided, however, that any
amounts paid to the Build Illinois Fund in any fiscal year
pursuant to this sentence shall be deemed to constitute
payments pursuant to clause (b) of the first sentence of this
paragraph and shall reduce the amount otherwise payable for
such fiscal year pursuant to that clause (b). The moneys
received by the Department pursuant to this Act and required
to be deposited into the Build Illinois Fund are subject to the
pledge, claim and charge set forth in Section 12 of the Build
Illinois Bond Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of

SB3019 Enrolled - 1422 - LRB104 20255 HLH 33706 b
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000

SB3019 Enrolled - 1423 - LRB104 20255 HLH 33706 b
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 300,000,000
2022 300,000,000
2023 300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034 375,000,000
2035 375,000,000
2036 450,000,000
and
each fiscal year
thereafter that bonds

SB3019 Enrolled - 1424 - LRB104 20255 HLH 33706 b
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, for aviation fuel sold on or after December 1, 2019,
the Department shall each month deposit into the Aviation Fuel
Sales Tax Refund Fund an amount estimated by the Department to
be required for refunds of the 80% portion of the tax on

SB3019 Enrolled - 1425 - LRB104 20255 HLH 33706 b
aviation fuel under this Act. The Department shall only
deposit moneys into the Aviation Fuel Sales Tax Refund Fund
under this paragraph for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois
Tax Increment Fund 0.27% of 80% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, and the
Illinois Tax Increment Fund pursuant to the preceding
paragraphs or in any amendments to this Section hereafter
enacted, beginning on the first day of the first calendar
month to occur on or after August 26, 2014 (the effective date
of Public Act 98-1098), each month, from the collections made
under Section 9 of the Use Tax Act, Section 9 of the Service
Use Tax Act, Section 9 of the Service Occupation Tax Act, and
Section 3 of the Retailers' Occupation Tax Act, the Department
shall pay into the Tax Compliance and Administration Fund, to
be used, subject to appropriation, to fund additional auditors
and compliance personnel at the Department of Revenue, an

SB3019 Enrolled - 1426 - LRB104 20255 HLH 33706 b
amount equal to 1/12 of 5% of 80% of the cash receipts
collected during the preceding fiscal year by the Audit Bureau
of the Department under the Use Tax Act, the Service Use Tax
Act, the Service Occupation Tax Act, the Retailers' Occupation
Tax Act, and associated local occupation and use taxes
administered by the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, the Energy Infrastructure Fund, and the
Tax Compliance and Administration Fund as provided in this
Section, beginning on July 1, 2018 the Department shall pay
each month into the Downstate Public Transportation Fund the
moneys required to be so paid under Section 2-3 of the
Downstate Public Transportation Act.
Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.

SB3019 Enrolled - 1427 - LRB104 20255 HLH 33706 b
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year.............................Total Deposit
2024.....................................$200,000,000
2025....................................$206,000,000
2026....................................$212,200,000
2027....................................$218,500,000
2028....................................$225,100,000
2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000
2034....................................$341,200,000
2035....................................$351,400,000
2036....................................$361,900,000
2037....................................$372,800,000
2038....................................$384,000,000
2039....................................$395,500,000

SB3019 Enrolled - 1428 - LRB104 20255 HLH 33706 b
2040....................................$407,400,000
2041....................................$419,600,000
2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the County and Mass Transit
District Fund, the Local Government Tax Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 16% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning July 1,
2022 and until July 1, 2023, subject to the payment of amounts
into the County and Mass Transit District Fund, the Local
Government Tax Fund, the Build Illinois Fund, the McCormick
Place Expansion Project Fund, the Illinois Tax Increment Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 32% of the net
revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning July 1, 2023 and until July 1, 2024,
subject to the payment of amounts into the County and Mass
Transit District Fund, the Local Government Tax Fund, the
Build Illinois Fund, the McCormick Place Expansion Project
Fund, the Illinois Tax Increment Fund, and the Tax Compliance

SB3019 Enrolled - 1429 - LRB104 20255 HLH 33706 b
and Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 48% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning July 1,
2024 and until July 1, 2026, subject to the payment of amounts
into the County and Mass Transit District Fund, the Local
Government Tax Fund, the Build Illinois Fund, the McCormick
Place Expansion Project Fund, the Illinois Tax Increment Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 64% of the net
revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning on July 1, 2026, subject to the payment of
amounts into the County and Mass Transit District Fund, the
Local Government Tax Fund, the Build Illinois Fund, the
McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, and the Tax Compliance and Administration Fund
as provided in this Section, the Department shall pay each
month into the Road Fund the amount estimated to represent 80%
of the net revenue realized from the taxes imposed on motor
fuel and gasohol. As used in this paragraph "motor fuel" has
the meaning given to that term in Section 1.1 of the Motor Fuel
Tax Law, and "gasohol" has the meaning given to that term in
Section 3-40 of the Use Tax Act.
Until July 1, 2025, of the remainder of the moneys
received by the Department pursuant to this Act, 75% thereof

SB3019 Enrolled - 1430 - LRB104 20255 HLH 33706 b
shall be paid into the State treasury and 25% shall be reserved
in a special account and used only for the transfer to the
Common School Fund as part of the monthly transfer from the
General Revenue Fund in accordance with Section 8a of the
State Finance Act. Beginning July 1, 2025, of the remainder of
the moneys received by the Department pursuant to this Act,
75% shall be deposited into the General Revenue Fund and 25%
shall be deposited into the Common School Fund.
The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.
Such annual return to the Department shall include a statement
of gross receipts as shown by the retailer's last federal
income tax return. If the total receipts of the business as
reported in the federal income tax return do not agree with the
gross receipts reported to the Department of Revenue for the
same period, the retailer shall attach to his annual return a
schedule showing a reconciliation of the 2 amounts and the
reasons for the difference. The retailer's annual return to
the Department shall also disclose the cost of goods sold by
the retailer during the year covered by such return, opening
and closing inventories of such goods for such year, costs of
goods used from stock or taken from stock and given away by the
retailer during such year, payroll information of the

SB3019 Enrolled - 1431 - LRB104 20255 HLH 33706 b
retailer's business during such year and any additional
reasonable information which the Department deems would be
helpful in determining the accuracy of the monthly, quarterly,
or annual returns filed by such retailer as provided for in
this Section.
If the annual information return required by this Section
is not filed when and as required, the taxpayer shall be liable
as follows:
(i) Until January 1, 1994, the taxpayer shall be
liable for a penalty equal to 1/6 of 1% of the tax due from
such taxpayer under this Act during the period to be
covered by the annual return for each month or fraction of
a month until such return is filed as required, the
penalty to be assessed and collected in the same manner as
any other penalty provided for in this Act.
(ii) On and after January 1, 1994, the taxpayer shall
be liable for a penalty as described in Section 3-4 of the
Uniform Penalty and Interest Act.
The chief executive officer, proprietor, owner, or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person who
willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and punished
accordingly. The annual return form prescribed by the
Department shall include a warning that the person signing the
return may be liable for perjury.

SB3019 Enrolled - 1432 - LRB104 20255 HLH 33706 b
The provisions of this Section concerning the filing of an
annual information return do not apply to a retailer who is not
required to file an income tax return with the United States
Government.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to
such sales, if the retailers who are affected do not make
written objection to the Department to this arrangement.
Any person who promotes, organizes, or provides retail
selling space for concessionaires or other types of sellers at
the Illinois State Fair, DuQuoin State Fair, county fairs,
local fairs, art shows, flea markets, and similar exhibitions

SB3019 Enrolled - 1433 - LRB104 20255 HLH 33706 b
or events, including any transient merchant as defined by
Section 2 of the Transient Merchant Act of 1987, is required to
file a report with the Department providing the name of the
merchant's business, the name of the person or persons engaged
in merchant's business, the permanent address and Illinois
Retailers Occupation Tax Registration Number of the merchant,
the dates and location of the event, and other reasonable
information that the Department may require. The report must
be filed not later than the 20th day of the month next
following the month during which the event with retail sales
was held. Any person who fails to file a report required by
this Section commits a business offense and is subject to a
fine not to exceed $250.
Any person engaged in the business of selling tangible
personal property at retail as a concessionaire or other type
of seller at the Illinois State Fair, county fairs, art shows,
flea markets, and similar exhibitions or events, or any
transient merchants, as defined by Section 2 of the Transient
Merchant Act of 1987, may be required to make a daily report of
the amount of such sales to the Department and to make a daily
payment of the full amount of tax due. The Department shall
impose this requirement when it finds that there is a
significant risk of loss of revenue to the State at such an
exhibition or event. Such a finding shall be based on evidence
that a substantial number of concessionaires or other sellers
who are not residents of Illinois will be engaging in the

SB3019 Enrolled - 1434 - LRB104 20255 HLH 33706 b
business of selling tangible personal property at retail at
the exhibition or event, or other evidence of a significant
risk of loss of revenue to the State. The Department shall
notify concessionaires and other sellers affected by the
imposition of this requirement. In the absence of notification
by the Department, the concessionaires and other sellers shall
file their returns as otherwise required in this Section.
(Source: P.A. 103-9, eff. 6-7-23; 103-154, eff. 6-30-23;
103-363, eff. 7-28-23; 103-592, Article 75, Section 75-20,
eff. 1-1-25; 103-592, Article 110, Section 110-20, eff.
6-7-24; 103-605, eff. 7-1-24; 103-1055, eff. 12-20-24; 104-6,
Article 5, Section 5-25, eff. 6-16-25; 104-6, Article 25,
Section 25-20, eff. 6-16-25; 104-6, Article 35, Section 35-35,
eff. 6-16-25; revised 1-12-26.)
(Text of Section after amendment by P.A. 104-457)
Sec. 3. Except as provided in this Section, on or before
the twentieth day of each calendar month, every person engaged
in the business of selling, which, on and after January 1,
2025, includes leasing, tangible personal property at retail
in this State during the preceding calendar month shall file a
return with the Department, stating:
1. The name of the seller;
2. His residence address and the address of his
principal place of business and the address of the
principal place of business (if that is a different

SB3019 Enrolled - 1435 - LRB104 20255 HLH 33706 b
address) from which he engages in the business of selling
tangible personal property at retail in this State;
3. Total amount of receipts received by him during the
preceding calendar month or quarter, as the case may be,
from sales of tangible personal property, and from
services furnished, by him during such preceding calendar
month or quarter;
4. Total amount received by him during the preceding
calendar month or quarter on charge and time sales of
tangible personal property, and from services furnished,
by him prior to the month or quarter for which the return
is filed;
5. Deductions allowed by law;
6. Gross receipts which were received by him during
the preceding calendar month or quarter and upon the basis
of which the tax is imposed, including gross receipts on
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
food consisting of or infused with adult use cannabis,
soft drinks, and food that has been prepared for immediate
consumption) which were received during the preceding
calendar month or quarter and upon which tax would have
been due but for the 0% rate imposed under Public Act
102-700;
7. The amount of credit provided in Section 2d of this
Act;

SB3019 Enrolled - 1436 - LRB104 20255 HLH 33706 b
8. The amount of tax due, including the amount of tax
that would have been due on food for human consumption
that is to be consumed off the premises where it is sold
(other than alcoholic beverages, food consisting of or
infused with adult use cannabis, soft drinks, and food
that has been prepared for immediate consumption) but for
the 0% rate imposed under Public Act 102-700;
9. The signature of the taxpayer; and
10. Such other reasonable information as the
Department may require.
In the case of leases, except as otherwise provided in
this Act, the lessor must remit for each tax return period only
the tax applicable to that part of the selling price actually
received during such tax return period.
On and after January 1, 2018, except for returns required
to be filed prior to January 1, 2023 for motor vehicles,
watercraft, aircraft, and trailers that are required to be
registered with an agency of this State, with respect to
retailers whose annual gross receipts average $20,000 or more,
all returns required to be filed pursuant to this Act shall be
filed electronically. On and after January 1, 2023, with
respect to retailers whose annual gross receipts average
$20,000 or more, all returns required to be filed pursuant to
this Act, including, but not limited to, returns for motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State, shall be filed

SB3019 Enrolled - 1437 - LRB104 20255 HLH 33706 b
electronically. Retailers who demonstrate that they do not
have access to the Internet or demonstrate hardship in filing
electronically may petition the Department to waive the
electronic filing requirement.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Each return shall be accompanied by the statement of
prepaid tax issued pursuant to Section 2e for which credit is
claimed.
Prior to October 1, 2003 and on and after September 1,
2004, a retailer may accept a Manufacturer's Purchase Credit
certification from a purchaser in satisfaction of Use Tax as
provided in Section 3-85 of the Use Tax Act if the purchaser
provides the appropriate documentation as required by Section
3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
certification, accepted by a retailer prior to October 1, 2003
and on and after September 1, 2004 as provided in Section 3-85
of the Use Tax Act, may be used by that retailer to satisfy
Retailers' Occupation Tax liability in the amount claimed in
the certification, not to exceed 6.25% of the receipts subject
to tax from a qualifying purchase. A Manufacturer's Purchase
Credit reported on any original or amended return filed under
this Act after October 20, 2003 for reporting periods prior to
September 1, 2004 shall be disallowed. Manufacturer's Purchase

SB3019 Enrolled - 1438 - LRB104 20255 HLH 33706 b
Credit reported on annual returns due on or after January 1,
2005 will be disallowed for periods prior to September 1,
2004. No Manufacturer's Purchase Credit may be used after
September 30, 2003 through August 31, 2004 to satisfy any tax
liability imposed under this Act, including any audit
liability.
Beginning on July 1, 2023 and through December 31, 2032, a
retailer may accept a Sustainable Aviation Fuel Purchase
Credit certification from an air common carrier-purchaser in
satisfaction of Use Tax on aviation fuel as provided in
Section 3-87 of the Use Tax Act if the purchaser provides the
appropriate documentation as required by Section 3-87 of the
Use Tax Act. A Sustainable Aviation Fuel Purchase Credit
certification accepted by a retailer in accordance with this
paragraph may be used by that retailer to satisfy Retailers'
Occupation Tax liability (but not in satisfaction of penalty
or interest) in the amount claimed in the certification, not
to exceed 6.25% of the receipts subject to tax from a sale of
aviation fuel. In addition, for a sale of aviation fuel to
qualify to earn the Sustainable Aviation Fuel Purchase Credit,
retailers must retain in their books and records a
certification from the producer of the aviation fuel that the
aviation fuel sold by the retailer and for which a sustainable
aviation fuel purchase credit was earned meets the definition
of sustainable aviation fuel under Section 3-87 of the Use Tax
Act. The documentation must include detail sufficient for the

SB3019 Enrolled - 1439 - LRB104 20255 HLH 33706 b
Department to determine the number of gallons of sustainable
aviation fuel sold.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first 2 months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in the business of selling tangible
personal property at retail in this State;
3. The total amount of taxable receipts received by
him during the preceding calendar month from sales of
tangible personal property by him during such preceding
calendar month, including receipts from charge and time
sales, but less all deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due; and
6. Such other reasonable information as the Department
may require.
Every person engaged in the business of selling aviation
fuel at retail in this State during the preceding calendar
month shall, instead of reporting and paying tax as otherwise

SB3019 Enrolled - 1440 - LRB104 20255 HLH 33706 b
required by this Section, report and pay such tax on a separate
aviation fuel tax return. The requirements related to the
return shall be as otherwise provided in this Section.
Notwithstanding any other provisions of this Act to the
contrary, retailers selling aviation fuel shall file all
aviation fuel tax returns and shall make all aviation fuel tax
payments by electronic means in the manner and form required
by the Department. For purposes of this Section, "aviation
fuel" means jet fuel and aviation gasoline.
Beginning on October 1, 2003, any person who is not a
licensed distributor, importing distributor, or manufacturer,
as defined in the Liquor Control Act of 1934, but is engaged in
the business of selling, at retail, alcoholic liquor shall
file a statement with the Department of Revenue, in a format
and at a time prescribed by the Department, showing the total
amount paid for alcoholic liquor purchased during the
preceding month and such other information as is reasonably
required by the Department. The Department may adopt rules to
require that this statement be filed in an electronic or
telephonic format. Such rules may provide for exceptions from
the filing requirements of this paragraph. For the purposes of
this paragraph, the term "alcoholic liquor" shall have the
meaning prescribed in the Liquor Control Act of 1934.
Beginning on October 1, 2003, every distributor, importing
distributor, and manufacturer of alcoholic liquor as defined
in the Liquor Control Act of 1934, shall file a statement with

SB3019 Enrolled - 1441 - LRB104 20255 HLH 33706 b
the Department of Revenue, no later than the 10th day of the
month for the preceding month during which transactions
occurred, by electronic means, showing the total amount of
gross receipts from the sale of alcoholic liquor sold or
distributed during the preceding month to purchasers;
identifying the purchaser to whom it was sold or distributed;
the purchaser's tax registration number; and such other
information reasonably required by the Department. A
distributor, importing distributor, or manufacturer of
alcoholic liquor must personally deliver, mail, or provide by
electronic means to each retailer listed on the monthly
statement a report containing a cumulative total of that
distributor's, importing distributor's, or manufacturer's
total sales of alcoholic liquor to that retailer no later than
the 10th day of the month for the preceding month during which
the transaction occurred. The distributor, importing
distributor, or manufacturer shall notify the retailer as to
the method by which the distributor, importing distributor, or
manufacturer will provide the sales information. If the
retailer is unable to receive the sales information by
electronic means, the distributor, importing distributor, or
manufacturer shall furnish the sales information by personal
delivery or by mail. For purposes of this paragraph, the term
"electronic means" includes, but is not limited to, the use of
a secure Internet website, e-mail, or facsimile.
If a total amount of less than $1 is payable, refundable or

SB3019 Enrolled - 1442 - LRB104 20255 HLH 33706 b
creditable, such amount shall be disregarded if it is less
than 50 cents and shall be increased to $1 if it is 50 cents or
more.
Notwithstanding any other provision of this Act to the
contrary, retailers subject to tax on cannabis shall file all
cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall
make all payments required by rules of the Department by
electronic funds transfer. Beginning October 1, 1995, a
taxpayer who has an average monthly tax liability of $50,000
or more shall make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1,
2000, a taxpayer who has an annual tax liability of $200,000 or
more shall make all payments required by rules of the
Department by electronic funds transfer. The term "annual tax
liability" shall be the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year. The term "average monthly
tax liability" shall be the sum of the taxpayer's liabilities

SB3019 Enrolled - 1443 - LRB104 20255 HLH 33706 b
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year divided by 12. Beginning
on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the
Department of Revenue Law shall make all payments required by
rules of the Department by electronic funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make
payments by electronic funds transfer. All taxpayers required
to make payments by electronic funds transfer shall make those
payments for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those
payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
Any amount which is required to be shown or reported on any
return or other document under this Act shall, if such amount
is not a whole-dollar amount, be increased to the nearest
whole-dollar amount in any case where the fractional part of a

SB3019 Enrolled - 1444 - LRB104 20255 HLH 33706 b
dollar is 50 cents or more, and decreased to the nearest
whole-dollar amount where the fractional part of a dollar is
less than 50 cents.
If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February, and March of a given
year being due by April 20 of such year; with the return for
April, May, and June of a given year being due by July 20 of
such year; with the return for July, August, and September of a
given year being due by October 20 of such year, and with the
return for October, November, and December of a given year
being due by January 20 of the following year.
If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
liability with the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January 20
of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act concerning
the time within which a retailer may file his return, in the
case of any retailer who ceases to engage in a kind of business

SB3019 Enrolled - 1445 - LRB104 20255 HLH 33706 b
which makes him responsible for filing returns under this Act,
such retailer shall file a final return under this Act with the
Department not more than one month after discontinuing such
business.
Where the same person has more than one business
registered with the Department under separate registrations
under this Act, such person may not file each return that is
due as a single return covering all such registered
businesses, but shall file separate returns for each such
registered business.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, except as otherwise provided in this
Section, every retailer selling this kind of tangible personal
property shall file, with the Department, upon a form to be
prescribed and supplied by the Department, a separate return
for each such item of tangible personal property which the
retailer sells, except that if, in the same transaction, (i) a
retailer of aircraft, watercraft, motor vehicles, or trailers
transfers more than one aircraft, watercraft, motor vehicle,
or trailer to another aircraft, watercraft, motor vehicle
retailer, or trailer retailer for the purpose of resale or
(ii) a retailer of aircraft, watercraft, motor vehicles, or
trailers transfers more than one aircraft, watercraft, motor
vehicle, or trailer to a purchaser for use as a qualifying
rolling stock as provided in Section 2-5 of this Act, then that

SB3019 Enrolled - 1446 - LRB104 20255 HLH 33706 b
seller may report the transfer of all aircraft, watercraft,
motor vehicles, or trailers involved in that transaction to
the Department on the same uniform invoice-transaction
reporting return form. For purposes of this Section,
"watercraft" means a Class 2, Class 3, or Class 4 watercraft as
defined in Section 3-2 of the Boat Registration and Safety
Act, a personal watercraft, or any boat equipped with an
inboard motor.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, every person who is engaged in the
business of leasing or renting such items and who, in
connection with such business, sells any such item to a
retailer for the purpose of resale is, notwithstanding any
other provision of this Section to the contrary, authorized to
meet the return-filing requirement of this Act by reporting
the transfer of all the aircraft, watercraft, motor vehicles,
or trailers transferred for resale during a month to the
Department on the same uniform invoice-transaction reporting
return form on or before the 20th of the month following the
month in which the transfer takes place. Notwithstanding any
other provision of this Act to the contrary, all returns filed
under this paragraph must be filed by electronic means in the
manner and form as required by the Department.
Any retailer who sells only motor vehicles, watercraft,
aircraft, or trailers that are required to be registered with

SB3019 Enrolled - 1447 - LRB104 20255 HLH 33706 b
an agency of this State, so that all retailers' occupation tax
liability is required to be reported, and is reported, on such
transaction reporting returns and who is not otherwise
required to file monthly or quarterly returns, need not file
monthly or quarterly returns. However, those retailers shall
be required to file returns on an annual basis.
The transaction reporting return, in the case of motor
vehicles or trailers that are required to be registered with
an agency of this State, shall be the same document as the
Uniform Invoice referred to in Section 5-402 of the Illinois
Vehicle Code and must show the name and address of the seller;
the name and address of the purchaser; the amount of the
selling price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 1 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling
price; the amount of tax due from the retailer with respect to
such transaction; the amount of tax collected from the
purchaser by the retailer on such transaction (or satisfactory
evidence that such tax is not due in that particular instance,
if that is claimed to be the fact); the place and date of the
sale; a sufficient identification of the property sold; such
other information as is required in Section 5-402 of the
Illinois Vehicle Code, and such other information as the

SB3019 Enrolled - 1448 - LRB104 20255 HLH 33706 b
Department may reasonably require.
The transaction reporting return in the case of watercraft
or aircraft must show the name and address of the seller; the
name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 1 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling
price; the amount of tax due from the retailer with respect to
such transaction; the amount of tax collected from the
purchaser by the retailer on such transaction (or satisfactory
evidence that such tax is not due in that particular instance,
if that is claimed to be the fact); the place and date of the
sale, a sufficient identification of the property sold, and
such other information as the Department may reasonably
require.
Such transaction reporting return shall be filed not later
than 20 days after the day of delivery of the item that is
being sold, but may be filed by the retailer at any time sooner
than that if he chooses to do so. The transaction reporting
return and tax remittance or proof of exemption from the
Illinois use tax may be transmitted to the Department by way of
the State agency with which, or State officer with whom the
tangible personal property must be titled or registered (if

SB3019 Enrolled - 1449 - LRB104 20255 HLH 33706 b
titling or registration is required) if the Department and
such agency or State officer determine that this procedure
will expedite the processing of applications for title or
registration.
With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the
Department shall issue, in the purchaser's name, a use tax
receipt (or a certificate of exemption if the Department is
satisfied that the particular sale is tax-exempt) which such
purchaser may submit to the agency with which, or State
officer with whom, he must title or register the tangible
personal property that is involved (if titling or registration
is required) in support of such purchaser's application for an
Illinois certificate or other evidence of title or
registration to such tangible personal property.
No retailer's failure or refusal to remit tax under this
Act precludes a user, who has paid the proper tax to the
retailer, from obtaining his certificate of title or other
evidence of title or registration (if titling or registration
is required) upon satisfying the Department that such user has
paid the proper tax (if tax is due) to the retailer. The
Department shall adopt appropriate rules to carry out the
mandate of this paragraph.
If the user who would otherwise pay tax to the retailer

SB3019 Enrolled - 1450 - LRB104 20255 HLH 33706 b
wants the transaction reporting return filed and the payment
of the tax or proof of exemption made to the Department before
the retailer is willing to take these actions and such user has
not paid the tax to the retailer, such user may certify to the
fact of such delay by the retailer and may (upon the Department
being satisfied of the truth of such certification) transmit
the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to
the Department and obtain his tax receipt or exemption
determination, in which event the transaction reporting return
and tax remittance (if a tax payment was required) shall be
credited by the Department to the proper retailer's account
with the Department, but without the vendor's discount
provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the
same amount and in the same form in which it would be remitted
if the tax had been remitted to the Department by the retailer.
On and after January 1, 2025, with respect to the lease of
trailers, other than semitrailers as defined in Section 1-187
of the Illinois Vehicle Code, that are required to be
registered with an agency of this State and that are subject to
the tax on lease receipts under this Act, notwithstanding any
other provision of this Act to the contrary, for the purpose of
reporting and paying tax under this Act on those lease
receipts, lessors shall file returns in addition to and
separate from the transaction reporting return. Lessors shall

SB3019 Enrolled - 1451 - LRB104 20255 HLH 33706 b
file those lease returns and make payment to the Department by
electronic means on or before the 20th day of each month
following the month, quarter, or year, as applicable, in which
lease receipts were received. All lease receipts received by
the lessor from the lease of those trailers during the same
reporting period shall be reported and tax shall be paid on a
single return form to be prescribed by the Department.
Refunds made by the seller during the preceding return
period to purchasers, on account of tangible personal property
returned to the seller, shall be allowed as a deduction under
subdivision 5 of his monthly or quarterly return, as the case
may be, in case the seller had theretofore included the
receipts from the sale of such tangible personal property in a
return filed by him and had paid the tax imposed by this Act
with respect to such receipts.
Where the seller is a corporation, the return filed on
behalf of such corporation shall be signed by the president,
vice-president, secretary, or treasurer or by the properly
accredited agent of such corporation.
Where the seller is a limited liability company, the
return filed on behalf of the limited liability company shall
be signed by a manager, member, or properly accredited agent
of the limited liability company.
Except as provided in this Section, the retailer filing
the return under this Section shall, at the time of filing such
return, pay to the Department the amount of tax imposed by this

SB3019 Enrolled - 1452 - LRB104 20255 HLH 33706 b
Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
on and after January 1, 1990, or $5 per calendar year,
whichever is greater, which is allowed to reimburse the
retailer for the expenses incurred in keeping records,
preparing and filing returns, remitting the tax and supplying
data to the Department on request. A certified service
provider, as defined in the Leveling the Playing Field for
Illinois Retail Act, filing the return under this Section on
behalf of a remote retailer or a retailer maintaining a place
of business in this State shall, at the time of such return,
pay to the Department the amount of tax imposed by this Act
less a discount of 1.75%. A remote retailer or a retailer
maintaining a place of business in this State using a
certified service provider to file a return on its behalf, as
provided in the Leveling the Playing Field for Illinois Retail
Act, is not eligible for the discount. Beginning with returns
due on or after January 1, 2025, the vendor's discount allowed
in this Section, the Service Occupation Tax Act, the Use Tax
Act, and the Service Use Tax Act, including any local tax
administered by the Department and reported on the same
return, shall not exceed $1,000 per month in the aggregate for
returns other than transaction returns filed during the month.
When determining the discount allowed under this Section,
retailers shall include the amount of tax that would have been
due at the 1% rate but for the 0% rate imposed under Public Act
102-700. When determining the discount allowed under this

SB3019 Enrolled - 1453 - LRB104 20255 HLH 33706 b
Section, retailers shall include the amount of tax that would
have been due at the 6.25% rate but for the 1.25% rate imposed
on sales tax holiday items under Public Act 102-700. The
discount under this Section is not allowed for the 1.25%
portion of taxes paid on aviation fuel that is subject to the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133. Any prepayment made pursuant to Section 2d of this Act
shall be included in the amount on which such discount is
computed. In the case of retailers who report and pay the tax
on a transaction by transaction basis, as provided in this
Section, such discount shall be taken with each such tax
remittance instead of when such retailer files his periodic
return, but, beginning with returns due on or after January 1,
2025, the vendor's discount allowed under this Section and the
Use Tax Act, including any local tax administered by the
Department and reported on the same transaction return, shall
not exceed $1,000 per month for all transaction returns filed
during the month. The discount allowed under this Section is
allowed only for returns that are filed in the manner required
by this Act. The Department may disallow the discount for
retailers whose certificate of registration is revoked at the
time the return is filed, but only if the Department's
decision to revoke the certificate of registration has become
final.
Before October 1, 2000, if the taxpayer's average monthly
tax liability to the Department under this Act, the Use Tax

SB3019 Enrolled - 1454 - LRB104 20255 HLH 33706 b
Act, the Service Occupation Tax Act, and the Service Use Tax
Act, excluding any liability for prepaid sales tax to be
remitted in accordance with Section 2d of this Act, was
$10,000 or more during the preceding 4 complete calendar
quarters, he shall file a return with the Department each
month by the 20th day of the month next following the month
during which such tax liability is incurred and shall make
payments to the Department on or before the 7th, 15th, 22nd and
last day of the month during which such liability is incurred.
On and after October 1, 2000, if the taxpayer's average
monthly tax liability to the Department under this Act, the
Use Tax Act, the Service Occupation Tax Act, and the Service
Use Tax Act, excluding any liability for prepaid sales tax to
be remitted in accordance with Section 2d of this Act, was
$20,000 or more during the preceding 4 complete calendar
quarters, he shall file a return with the Department each
month by the 20th day of the month next following the month
during which such tax liability is incurred and shall make
payment to the Department on or before the 7th, 15th, 22nd and
last day of the month during which such liability is incurred.
If the month during which such tax liability is incurred began
prior to January 1, 1985, each payment shall be in an amount
equal to 1/4 of the taxpayer's actual liability for the month
or an amount set by the Department not to exceed 1/4 of the
average monthly liability of the taxpayer to the Department
for the preceding 4 complete calendar quarters (excluding the

SB3019 Enrolled - 1455 - LRB104 20255 HLH 33706 b
month of highest liability and the month of lowest liability
in such 4 quarter period). If the month during which such tax
liability is incurred begins on or after January 1, 1985 and
prior to January 1, 1987, each payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the
month or 27.5% of the taxpayer's liability for the same
calendar month of the preceding year. If the month during
which such tax liability is incurred begins on or after
January 1, 1987 and prior to January 1, 1988, each payment
shall be in an amount equal to 22.5% of the taxpayer's actual
liability for the month or 26.25% of the taxpayer's liability
for the same calendar month of the preceding year. If the month
during which such tax liability is incurred begins on or after
January 1, 1988, and prior to January 1, 1989, or begins on or
after January 1, 1996, each payment shall be in an amount equal
to 22.5% of the taxpayer's actual liability for the month or
25% of the taxpayer's liability for the same calendar month of
the preceding year. If the month during which such tax
liability is incurred begins on or after January 1, 1989, and
prior to January 1, 1996, each payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the
month or 25% of the taxpayer's liability for the same calendar
month of the preceding year or 100% of the taxpayer's actual
liability for the quarter monthly reporting period. The amount
of such quarter monthly payments shall be credited against the
final tax liability of the taxpayer's return for that month.

SB3019 Enrolled - 1456 - LRB104 20255 HLH 33706 b
Before October 1, 2000, once applicable, the requirement of
the making of quarter monthly payments to the Department by
taxpayers having an average monthly tax liability of $10,000
or more as determined in the manner provided above shall
continue until such taxpayer's average monthly liability to
the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the
month of lowest liability) is less than $9,000, or until such
taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $10,000. However, if a
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $10,000
threshold stated above, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status.
On and after October 1, 2000, once applicable, the requirement
of the making of quarter monthly payments to the Department by
taxpayers having an average monthly tax liability of $20,000
or more as determined in the manner provided above shall
continue until such taxpayer's average monthly liability to
the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the
month of lowest liability) is less than $19,000 or until such
taxpayer's average monthly liability to the Department as

SB3019 Enrolled - 1457 - LRB104 20255 HLH 33706 b
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $20,000. However, if a
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $20,000
threshold stated above, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status.
The Department shall change such taxpayer's reporting status
unless it finds that such change is seasonal in nature and not
likely to be long term. Quarter monthly payment status shall
be determined under this paragraph as if the rate reduction to
0% in Public Act 102-700 on food for human consumption that is
to be consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption) had not occurred. For quarter monthly
payments due under this paragraph on or after July 1, 2023 and
through June 30, 2024, "25% of the taxpayer's liability for
the same calendar month of the preceding year" shall be
determined as if the rate reduction to 0% in Public Act 102-700
had not occurred. Quarter monthly payment status shall be
determined under this paragraph as if the rate reduction to
1.25% in Public Act 102-700 on sales tax holiday items had not
occurred. For quarter monthly payments due on or after July 1,
2023 and through June 30, 2024, "25% of the taxpayer's

SB3019 Enrolled - 1458 - LRB104 20255 HLH 33706 b
liability for the same calendar month of the preceding year"
shall be determined as if the rate reduction to 1.25% in Public
Act 102-700 on sales tax holiday items had not occurred. If any
such quarter monthly payment is not paid at the time or in the
amount required by this Section, then the taxpayer shall be
liable for penalties and interest on the difference between
the minimum amount due as a payment and the amount of such
quarter monthly payment actually and timely paid, except
insofar as the taxpayer has previously made payments for that
month to the Department in excess of the minimum payments
previously due as provided in this Section. The Department
shall make reasonable rules and regulations to govern the
quarter monthly payment amount and quarter monthly payment
dates for taxpayers who file on other than a calendar monthly
basis.
The provisions of this paragraph apply before October 1,
2001. Without regard to whether a taxpayer is required to make
quarter monthly payments as specified above, any taxpayer who
is required by Section 2d of this Act to collect and remit
prepaid taxes and has collected prepaid taxes which average in
excess of $25,000 per month during the preceding 2 complete
calendar quarters, shall file a return with the Department as
required by Section 2f and shall make payments to the
Department on or before the 7th, 15th, 22nd and last day of the
month during which such liability is incurred. If the month
during which such tax liability is incurred began prior to

SB3019 Enrolled - 1459 - LRB104 20255 HLH 33706 b
September 1, 1985 (the effective date of Public Act 84-221),
each payment shall be in an amount not less than 22.5% of the
taxpayer's actual liability under Section 2d. If the month
during which such tax liability is incurred begins on or after
January 1, 1986, each payment shall be in an amount equal to
22.5% of the taxpayer's actual liability for the month or
27.5% of the taxpayer's liability for the same calendar month
of the preceding calendar year. If the month during which such
tax liability is incurred begins on or after January 1, 1987,
each payment shall be in an amount equal to 22.5% of the
taxpayer's actual liability for the month or 26.25% of the
taxpayer's liability for the same calendar month of the
preceding year. The amount of such quarter monthly payments
shall be credited against the final tax liability of the
taxpayer's return for that month filed under this Section or
Section 2f, as the case may be. Once applicable, the
requirement of the making of quarter monthly payments to the
Department pursuant to this paragraph shall continue until
such taxpayer's average monthly prepaid tax collections during
the preceding 2 complete calendar quarters is $25,000 or less.
If any such quarter monthly payment is not paid at the time or
in the amount required, the taxpayer shall be liable for
penalties and interest on such difference, except insofar as
the taxpayer has previously made payments for that month in
excess of the minimum payments previously due.
The provisions of this paragraph apply on and after

SB3019 Enrolled - 1460 - LRB104 20255 HLH 33706 b
October 1, 2001. Without regard to whether a taxpayer is
required to make quarter monthly payments as specified above,
any taxpayer who is required by Section 2d of this Act to
collect and remit prepaid taxes and has collected prepaid
taxes that average in excess of $20,000 per month during the
preceding 4 complete calendar quarters shall file a return
with the Department as required by Section 2f and shall make
payments to the Department on or before the 7th, 15th, 22nd,
and last day of the month during which the liability is
incurred. Each payment shall be in an amount equal to 22.5% of
the taxpayer's actual liability for the month or 25% of the
taxpayer's liability for the same calendar month of the
preceding year. The amount of the quarter monthly payments
shall be credited against the final tax liability of the
taxpayer's return for that month filed under this Section or
Section 2f, as the case may be. Once applicable, the
requirement of the making of quarter monthly payments to the
Department pursuant to this paragraph shall continue until the
taxpayer's average monthly prepaid tax collections during the
preceding 4 complete calendar quarters (excluding the month of
highest liability and the month of lowest liability) is less
than $19,000 or until such taxpayer's average monthly
liability to the Department as computed for each calendar
quarter of the 4 preceding complete calendar quarters is less
than $20,000. If any such quarter monthly payment is not paid
at the time or in the amount required, the taxpayer shall be

SB3019 Enrolled - 1461 - LRB104 20255 HLH 33706 b
liable for penalties and interest on such difference, except
insofar as the taxpayer has previously made payments for that
month in excess of the minimum payments previously due.
If any payment provided for in this Section exceeds the
taxpayer's liabilities under this Act, the Use Tax Act, the
Service Occupation Tax Act, and the Service Use Tax Act, as
shown on an original monthly return, the Department shall, if
requested by the taxpayer, issue to the taxpayer a credit
memorandum no later than 30 days after the date of payment. The
credit evidenced by such credit memorandum may be assigned by
the taxpayer to a similar taxpayer under this Act, the Use Tax
Act, the Service Occupation Tax Act, or the Service Use Tax
Act, in accordance with reasonable rules and regulations to be
prescribed by the Department. If no such request is made, the
taxpayer may credit such excess payment against tax liability
subsequently to be remitted to the Department under this Act,
the Use Tax Act, the Service Occupation Tax Act, or the Service
Use Tax Act, in accordance with reasonable rules and
regulations prescribed by the Department. If the Department
subsequently determined that all or any part of the credit
taken was not actually due to the taxpayer, the taxpayer's
vendor's discount shall be reduced, if necessary, to reflect
the difference between the credit taken and that actually due,
and that taxpayer shall be liable for penalties and interest
on such difference.
If a retailer of motor fuel is entitled to a credit under

SB3019 Enrolled - 1462 - LRB104 20255 HLH 33706 b
Section 2d of this Act which exceeds the taxpayer's liability
to the Department under this Act for the month for which the
taxpayer is filing a return, the Department shall issue the
taxpayer a credit memorandum for the excess.
The net revenue realized at the 15% rate under either
Section 4 or Section 5 of this Act shall be deposited as
follows: (i) notwithstanding the provisions of this Section to
the contrary, the net revenue realized from the portion of the
rate in excess of 5% shall be deposited into the State and
Local Sales Tax Reform Fund; and (ii) the net revenue realized
from the 5% portion of the rate shall be deposited as provided
in this Section for the 5% portion of the 6.25% general rate
imposed under this Act.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund, a special fund in the
State treasury which is hereby created, the net revenue
realized for the preceding month from the 1% tax imposed under
this Act.
Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund, a special
fund in the State treasury which is hereby created, 4% of the
net revenue realized for the preceding month from the 6.25%
general rate other than aviation fuel sold on or after
December 1, 2019. This exception for aviation fuel only
applies for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.

SB3019 Enrolled - 1463 - LRB104 20255 HLH 33706 b
Beginning August 1, 2000, each month the Department shall
pay into the County and Mass Transit District Fund 20% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol. If, in any
month, the tax on sales tax holiday items, as defined in
Section 2-8, is imposed at the rate of 1.25%, then the
Department shall pay 20% of the net revenue realized for that
month from the 1.25% rate on the selling price of sales tax
holiday items into the County and Mass Transit District Fund.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the net revenue
realized for the preceding month from the 6.25% general rate
on the selling price of tangible personal property other than
aviation fuel sold on or after December 1, 2019. This
exception for aviation fuel only applies for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be
required for refunds of the 20% portion of the tax on aviation
fuel under this Act, which amount shall be deposited into the
Aviation Fuel Sales Tax Refund Fund. The Department shall only
pay moneys into the State Aviation Program Fund and the

SB3019 Enrolled - 1464 - LRB104 20255 HLH 33706 b
Aviation Fuel Sales Tax Refund Fund under this Act for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the Local Government Tax Fund 80% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of motor fuel and gasohol. If, in any month, the
tax on sales tax holiday items, as defined in Section 2-8, is
imposed at the rate of 1.25%, then the Department shall pay 80%
of the net revenue realized for that month from the 1.25% rate
on the selling price of sales tax holiday items into the Local
Government Tax Fund.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2011, each month the Department shall
pay into the Clean Air Act Permit Fund 80% of the net revenue
realized for the preceding month from the 6.25% general rate
on the selling price of sorbents used in Illinois in the
process of sorbent injection as used to comply with the
Environmental Protection Act or the federal Clean Air Act, but
the total payment into the Clean Air Act Permit Fund under this

SB3019 Enrolled - 1465 - LRB104 20255 HLH 33706 b
Act and the Use Tax Act shall not exceed $2,000,000 in any
fiscal year.
Beginning July 1, 2013, each month the Department shall
pay into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service Use Tax
Act, and the Service Occupation Tax Act an amount equal to the
average monthly deficit in the Underground Storage Tank Fund
during the prior year, as certified annually by the Illinois
Environmental Protection Agency, but the total payment into
the Underground Storage Tank Fund under this Act, the Use Tax
Act, the Service Use Tax Act, and the Service Occupation Tax
Act shall not exceed $18,000,000 in any State fiscal year. As
used in this paragraph, the "average monthly deficit" shall be
equal to the difference between the average monthly claims for
payment by the fund and the average monthly revenues deposited
into the fund, excluding payments made pursuant to this
paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, the Service
Use Tax Act, the Service Occupation Tax Act, and this Act, each
month the Department shall deposit $500,000 into the State
Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the

SB3019 Enrolled - 1466 - LRB104 20255 HLH 33706 b
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to this Act,
Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
Act, and Section 9 of the Service Occupation Tax Act, such Acts
being hereinafter called the "Tax Acts" and such aggregate of
2.2% or 3.8%, as the case may be, of moneys being hereinafter
called the "Tax Act Amount", and (2) the amount transferred to
the Build Illinois Fund from the State and Local Sales Tax
Reform Fund shall be less than the Annual Specified Amount (as
hereinafter defined), an amount equal to the difference shall
be immediately paid into the Build Illinois Fund from other
moneys received by the Department pursuant to the Tax Acts;
the "Annual Specified Amount" means the amounts specified
below for fiscal years 1986 through 1993:
Fiscal Year Annual Specified Amount
1986 $54,800,000
1987 $76,650,000
1988 $80,480,000
1989 $88,510,000
1990 $115,330,000
1991 $145,470,000
1992 $182,730,000
1993 $206,520,000;
and means the Certified Annual Debt Service Requirement (as

SB3019 Enrolled - 1467 - LRB104 20255 HLH 33706 b
defined in Section 13 of the Build Illinois Bond Act) or the
Tax Act Amount, whichever is greater, for fiscal year 1994 and
each fiscal year thereafter; and further provided, that if on
the last business day of any month the sum of (1) the Tax Act
Amount required to be deposited into the Build Illinois Bond
Account in the Build Illinois Fund during such month and (2)
the amount transferred to the Build Illinois Fund from the
State and Local Sales Tax Reform Fund shall have been less than
1/12 of the Annual Specified Amount, an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and, further provided, that in no event shall the
payments required under the preceding proviso result in
aggregate payments into the Build Illinois Fund pursuant to
this clause (b) for any fiscal year in excess of the greater of
(i) the Tax Act Amount or (ii) the Annual Specified Amount for
such fiscal year. The amounts payable into the Build Illinois
Fund under clause (b) of the first sentence in this paragraph
shall be payable only until such time as the aggregate amount
on deposit under each trust indenture securing Bonds issued
and outstanding pursuant to the Build Illinois Bond Act is
sufficient, taking into account any future investment income,
to fully provide, in accordance with such indenture, for the
defeasance of or the payment of the principal of, premium, if
any, and interest on the Bonds secured by such indenture and on
any Bonds expected to be issued thereafter and all fees and

SB3019 Enrolled - 1468 - LRB104 20255 HLH 33706 b
costs payable with respect thereto, all as certified by the
Director of the Bureau of the Budget (now Governor's Office of
Management and Budget). If on the last business day of any
month in which Bonds are outstanding pursuant to the Build
Illinois Bond Act, the aggregate of moneys deposited into the
Build Illinois Bond Account in the Build Illinois Fund in such
month shall be less than the amount required to be transferred
in such month from the Build Illinois Bond Account to the Build
Illinois Bond Retirement and Interest Fund pursuant to Section
13 of the Build Illinois Bond Act, an amount equal to such
deficiency shall be immediately paid from other moneys
received by the Department pursuant to the Tax Acts to the
Build Illinois Fund; provided, however, that any amounts paid
to the Build Illinois Fund in any fiscal year pursuant to this
sentence shall be deemed to constitute payments pursuant to
clause (b) of the first sentence of this paragraph and shall
reduce the amount otherwise payable for such fiscal year
pursuant to that clause (b). The moneys received by the
Department pursuant to this Act and required to be deposited
into the Build Illinois Fund are subject to the pledge, claim
and charge set forth in Section 12 of the Build Illinois Bond
Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the

SB3019 Enrolled - 1469 - LRB104 20255 HLH 33706 b
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000

SB3019 Enrolled - 1470 - LRB104 20255 HLH 33706 b
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 300,000,000
2022 300,000,000
2023 300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034 375,000,000
2035 375,000,000

SB3019 Enrolled - 1471 - LRB104 20255 HLH 33706 b
2036 450,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter

SB3019 Enrolled - 1472 - LRB104 20255 HLH 33706 b
enacted, for aviation fuel sold on or after December 1, 2019,
the Department shall each month deposit into the Aviation Fuel
Sales Tax Refund Fund an amount estimated by the Department to
be required for refunds of the 80% portion of the tax on
aviation fuel under this Act. The Department shall only
deposit moneys into the Aviation Fuel Sales Tax Refund Fund
under this paragraph for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois
Tax Increment Fund 0.27% of 80% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, and the
Illinois Tax Increment Fund pursuant to the preceding
paragraphs or in any amendments to this Section hereafter
enacted, beginning on the first day of the first calendar
month to occur on or after August 26, 2014 (the effective date
of Public Act 98-1098), each month, from the collections made
under Section 9 of the Use Tax Act, Section 9 of the Service
Use Tax Act, Section 9 of the Service Occupation Tax Act, and

SB3019 Enrolled - 1473 - LRB104 20255 HLH 33706 b
Section 3 of the Retailers' Occupation Tax Act, the Department
shall pay into the Tax Compliance and Administration Fund, to
be used, subject to appropriation, to fund additional auditors
and compliance personnel at the Department of Revenue, an
amount equal to 1/12 of 5% of 80% of the cash receipts
collected during the preceding fiscal year by the Audit Bureau
of the Department under the Use Tax Act, the Service Use Tax
Act, the Service Occupation Tax Act, the Retailers' Occupation
Tax Act, and associated local occupation and use taxes
administered by the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, the Energy Infrastructure Fund, and the
Tax Compliance and Administration Fund as provided in this
Section, beginning on July 1, 2018 the Department shall pay
each month into the Downstate Public Transportation Fund the
moneys required to be so paid under Section 2-3 of the
Downstate Public Transportation Act.
Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the

SB3019 Enrolled - 1474 - LRB104 20255 HLH 33706 b
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year.............................Total Deposit
2024.....................................$200,000,000
2025....................................$206,000,000
2026....................................$212,200,000
2027....................................$218,500,000
2028....................................$225,100,000
2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000
2034....................................$341,200,000
2035....................................$351,400,000

SB3019 Enrolled - 1475 - LRB104 20255 HLH 33706 b
2036....................................$361,900,000
2037....................................$372,800,000
2038....................................$384,000,000
2039....................................$395,500,000
2040....................................$407,400,000
2041....................................$419,600,000
2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the County and Mass Transit
District Fund, the Local Government Tax Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 16% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning July 1,
2022 and until July 1, 2023, subject to the payment of amounts
into the County and Mass Transit District Fund, the Local
Government Tax Fund, the Build Illinois Fund, the McCormick
Place Expansion Project Fund, the Illinois Tax Increment Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 32% of the net
revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning July 1, 2023 and until July 1, 2024,

SB3019 Enrolled - 1476 - LRB104 20255 HLH 33706 b
subject to the payment of amounts into the County and Mass
Transit District Fund, the Local Government Tax Fund, the
Build Illinois Fund, the McCormick Place Expansion Project
Fund, the Illinois Tax Increment Fund, and the Tax Compliance
and Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 48% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning July 1,
2024 and until July 1, 2026, subject to the payment of amounts
into the County and Mass Transit District Fund, the Local
Government Tax Fund, the Build Illinois Fund, the McCormick
Place Expansion Project Fund, the Illinois Tax Increment Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 64% of the net
revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning on July 1, 2026 and until July 1, 2027,
subject to the payment of amounts into the County and Mass
Transit District Fund, the Local Government Tax Fund, the
Build Illinois Fund, the McCormick Place Expansion Project
Fund, the Illinois Tax Increment Fund, and the Tax Compliance
and Administration Fund as provided in this Section, the
Department shall pay $12,500,000 each month into the General
Revenue Fund before paying into the Public Transportation Fund
and the Downstate Public Transportation Fund the amount
estimated to represent 80% of the net revenue realized from

SB3019 Enrolled - 1477 - LRB104 20255 HLH 33706 b
the taxes imposed on motor fuel and gasohol. On June 1, 2027,
subject to the payment of amounts into the County and Mass
Transit District Fund, the Local Government Tax Fund, the
Build Illinois Fund, the McCormick Place Expansion Project
Fund, the Illinois Tax Increment Fund, and the Tax Compliance
and Administration Fund as provided in this Section, the
Department shall pay into the Road Fund $20,000,000 of the net
revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning on July 1, 2027, subject to the payment of
amounts into the County and Mass Transit District Fund, the
Local Government Tax Fund, the Build Illinois Fund, the
McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, and the Tax Compliance and Administration Fund
as provided in this Section, the Department shall pay each
month into the Public Transportation Fund and the Downstate
Public Transportation Fund the amount estimated to represent
80% of the net revenue realized from the taxes imposed on motor
fuel and gasohol. Moneys shall be apportioned as follows: 85%
into the Public Transportation Fund and 15% into the Downstate
Public Transportation Fund. As used in this paragraph "motor
fuel" has the meaning given to that term in Section 1.1 of the
Motor Fuel Tax Law, and "gasohol" has the meaning given to that
term in Section 3-40 of the Use Tax Act.
Until July 1, 2025, of the remainder of the moneys
received by the Department pursuant to this Act, 75% thereof
shall be paid into the State treasury and 25% shall be reserved

SB3019 Enrolled - 1478 - LRB104 20255 HLH 33706 b
in a special account and used only for the transfer to the
Common School Fund as part of the monthly transfer from the
General Revenue Fund in accordance with Section 8a of the
State Finance Act. Beginning July 1, 2025, of the remainder of
the moneys received by the Department pursuant to this Act,
75% shall be deposited into the General Revenue Fund and 25%
shall be deposited into the Common School Fund.
The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.
Such annual return to the Department shall include a statement
of gross receipts as shown by the retailer's last federal
income tax return. If the total receipts of the business as
reported in the federal income tax return do not agree with the
gross receipts reported to the Department of Revenue for the
same period, the retailer shall attach to his annual return a
schedule showing a reconciliation of the 2 amounts and the
reasons for the difference. The retailer's annual return to
the Department shall also disclose the cost of goods sold by
the retailer during the year covered by such return, opening
and closing inventories of such goods for such year, costs of
goods used from stock or taken from stock and given away by the
retailer during such year, payroll information of the
retailer's business during such year and any additional

SB3019 Enrolled - 1479 - LRB104 20255 HLH 33706 b
reasonable information which the Department deems would be
helpful in determining the accuracy of the monthly, quarterly,
or annual returns filed by such retailer as provided for in
this Section.
If the annual information return required by this Section
is not filed when and as required, the taxpayer shall be liable
as follows:
(i) Until January 1, 1994, the taxpayer shall be
liable for a penalty equal to 1/6 of 1% of the tax due from
such taxpayer under this Act during the period to be
covered by the annual return for each month or fraction of
a month until such return is filed as required, the
penalty to be assessed and collected in the same manner as
any other penalty provided for in this Act.
(ii) On and after January 1, 1994, the taxpayer shall
be liable for a penalty as described in Section 3-4 of the
Uniform Penalty and Interest Act.
The chief executive officer, proprietor, owner, or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person who
willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and punished
accordingly. The annual return form prescribed by the
Department shall include a warning that the person signing the
return may be liable for perjury.
The provisions of this Section concerning the filing of an

SB3019 Enrolled - 1480 - LRB104 20255 HLH 33706 b
annual information return do not apply to a retailer who is not
required to file an income tax return with the United States
Government.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to
such sales, if the retailers who are affected do not make
written objection to the Department to this arrangement.
Any person who promotes, organizes, or provides retail
selling space for concessionaires or other types of sellers at
the Illinois State Fair, DuQuoin State Fair, county fairs,
local fairs, art shows, flea markets, and similar exhibitions
or events, including any transient merchant as defined by

SB3019 Enrolled - 1481 - LRB104 20255 HLH 33706 b
Section 2 of the Transient Merchant Act of 1987, is required to
file a report with the Department providing the name of the
merchant's business, the name of the person or persons engaged
in merchant's business, the permanent address and Illinois
Retailers Occupation Tax Registration Number of the merchant,
the dates and location of the event, and other reasonable
information that the Department may require. The report must
be filed not later than the 20th day of the month next
following the month during which the event with retail sales
was held. Any person who fails to file a report required by
this Section commits a business offense and is subject to a
fine not to exceed $250.
Any person engaged in the business of selling tangible
personal property at retail as a concessionaire or other type
of seller at the Illinois State Fair, county fairs, art shows,
flea markets, and similar exhibitions or events, or any
transient merchants, as defined by Section 2 of the Transient
Merchant Act of 1987, may be required to make a daily report of
the amount of such sales to the Department and to make a daily
payment of the full amount of tax due. The Department shall
impose this requirement when it finds that there is a
significant risk of loss of revenue to the State at such an
exhibition or event. Such a finding shall be based on evidence
that a substantial number of concessionaires or other sellers
who are not residents of Illinois will be engaging in the
business of selling tangible personal property at retail at

SB3019 Enrolled - 1482 - LRB104 20255 HLH 33706 b
the exhibition or event, or other evidence of a significant
risk of loss of revenue to the State. The Department shall
notify concessionaires and other sellers affected by the
imposition of this requirement. In the absence of notification
by the Department, the concessionaires and other sellers shall
file their returns as otherwise required in this Section.
(Source: P.A. 103-9, eff. 6-7-23; 103-154, eff. 6-30-23;
103-363, eff. 7-28-23; 103-592, Article 75, Section 75-20,
eff. 1-1-25; 103-592, Article 110, Section 110-20, eff.
6-7-24; 103-605, eff. 7-1-24; 103-1055, eff. 12-20-24; 104-6,
Article 5, Section 5-25, eff. 6-16-25; 104-6, Article 25,
Section 25-20, eff. 6-16-25; 104-6, Article 35, Section 35-35,
eff. 6-16-25; 104-457, eff. 6-1-26.)
ARTICLE 160
Section 160-5. The Service Use Tax Act is amended by
changing Section 9 as follows:
(35 ILCS 110/9)
(Text of Section before amendment by P.A. 104-457)
Sec. 9. Each serviceman required or authorized to collect
the tax herein imposed shall pay to the Department the amount
of such tax (except as otherwise provided) at the time when he
is required to file his return for the period during which such
tax was collected, less a discount of 2.1% prior to January 1,

SB3019 Enrolled - 1483 - LRB104 20255 HLH 33706 b
1990 and 1.75% on and after January 1, 1990, or $5 per calendar
year, whichever is greater, which is allowed to reimburse the
serviceman for expenses incurred in collecting the tax,
keeping records, preparing and filing returns, remitting the
tax, and supplying data to the Department on request.
Beginning with returns due on or after January 1, 2025, the
vendor's discount allowed in this Section, the Retailers'
Occupation Tax Act, the Service Occupation Tax Act, and the
Use Tax Act, including any local tax administered by the
Department and reported on the same return, shall not exceed
$1,000 per month in the aggregate. When determining the
discount allowed under this Section, servicemen shall include
the amount of tax that would have been due at the 1% rate but
for the 0% rate imposed under Public Act 102-700. The discount
under this Section is not allowed for the 1.25% portion of
taxes paid on aviation fuel that is subject to the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The
discount allowed under this Section is allowed only for
returns that are filed in the manner required by this Act. The
Department may disallow the discount for servicemen whose
certificate of registration is revoked at the time the return
is filed, but only if the Department's decision to revoke the
certificate of registration has become final. A serviceman
need not remit that part of any tax collected by him to the
extent that he is required to pay and does pay the tax imposed
by the Service Occupation Tax Act with respect to his sale of

SB3019 Enrolled - 1484 - LRB104 20255 HLH 33706 b
service involving the incidental transfer by him of the same
property.
Except as provided hereinafter in this Section, on or
before the twentieth day of each calendar month, such
serviceman shall file a return for the preceding calendar
month in accordance with reasonable Rules and Regulations to
be promulgated by the Department. Such return shall be filed
on a form prescribed by the Department and shall contain such
information as the Department may reasonably require. The
return shall include the gross receipts which were received
during the preceding calendar month or quarter on the
following items upon which tax would have been due but for the
0% rate imposed under Public Act 102-700: (i) food for human
consumption that is to be consumed off the premises where it is
sold (other than alcoholic beverages, food consisting of or
infused with adult use cannabis, soft drinks, and food that
has been prepared for immediate consumption); and (ii) food
prepared for immediate consumption and transferred incident to
a sale of service subject to this Act or the Service Occupation
Tax Act by an entity licensed under the Hospital Licensing
Act, the Nursing Home Care Act, the Assisted Living and Shared
Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
Specialized Mental Health Rehabilitation Act of 2013, or the
Child Care Act of 1969, or an entity that holds a permit issued
pursuant to the Life Care Facilities Act. The return shall
also include the amount of tax that would have been due on the

SB3019 Enrolled - 1485 - LRB104 20255 HLH 33706 b
items listed in the previous sentence but for the 0% rate
imposed under Public Act 102-700.
In the case of leases, except as otherwise provided in
this Act, the lessor, in collecting the tax, may collect for
each tax return period only the tax applicable to that part of
the selling price actually received during such tax return
period.
On and after January 1, 2018, with respect to servicemen
whose annual gross receipts average $20,000 or more, all
returns required to be filed pursuant to this Act shall be
filed electronically. Servicemen who demonstrate that they do
not have access to the Internet or demonstrate hardship in
filing electronically may petition the Department to waive the
electronic filing requirement.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first 2 two months of each calendar quarter, on or
before the twentieth day of the following calendar month,
stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in business as a serviceman in this
State;

SB3019 Enrolled - 1486 - LRB104 20255 HLH 33706 b
3. The total amount of taxable receipts received by
him during the preceding calendar month, including
receipts from charge and time sales, but less all
deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the Department
may require.
Each serviceman required or authorized to collect the tax
imposed by this Act on aviation fuel transferred as an
incident of a sale of service in this State during the
preceding calendar month shall, instead of reporting and
paying tax on aviation fuel as otherwise required by this
Section, report and pay such tax on a separate aviation fuel
tax return. The requirements related to the return shall be as
otherwise provided in this Section. Notwithstanding any other
provisions of this Act to the contrary, servicemen collecting
tax on aviation fuel shall file all aviation fuel tax returns
and shall make all aviation fuel tax payments by electronic
means in the manner and form required by the Department. For
purposes of this Section, "aviation fuel" means jet fuel and
aviation gasoline.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,

SB3019 Enrolled - 1487 - LRB104 20255 HLH 33706 b
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Notwithstanding any other provision of this Act to the
contrary, servicemen subject to tax on cannabis shall file all
cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall
make all payments required by rules of the Department by
electronic funds transfer. Beginning October 1, 1995, a
taxpayer who has an average monthly tax liability of $50,000
or more shall make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1,
2000, a taxpayer who has an annual tax liability of $200,000 or
more shall make all payments required by rules of the
Department by electronic funds transfer. The term "annual tax
liability" shall be the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year. The term "average monthly
tax liability" means the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation

SB3019 Enrolled - 1488 - LRB104 20255 HLH 33706 b
and use tax laws administered by the Department, for the
immediately preceding calendar year divided by 12. Beginning
on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the
Department of Revenue Law shall make all payments required by
rules of the Department by electronic funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make
payments by electronic funds transfer. All taxpayers required
to make payments by electronic funds transfer shall make those
payments for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those
payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
If the serviceman is otherwise required to file a monthly
return and if the serviceman's average monthly tax liability
to the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February, and March of a given

SB3019 Enrolled - 1489 - LRB104 20255 HLH 33706 b
year being due by April 20 of such year; with the return for
April, May, and June of a given year being due by July 20 of
such year; with the return for July, August, and September of a
given year being due by October 20 of such year, and with the
return for October, November, and December of a given year
being due by January 20 of the following year.
If the serviceman is otherwise required to file a monthly
or quarterly return and if the serviceman's average monthly
tax liability to the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January 20
of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act concerning
the time within which a serviceman may file his return, in the
case of any serviceman who ceases to engage in a kind of
business which makes him responsible for filing returns under
this Act, such serviceman shall file a final return under this
Act with the Department not more than one month after
discontinuing such business.
Where a serviceman collects the tax with respect to the
selling price of property which he sells and the purchaser
thereafter returns such property and the serviceman refunds
the selling price thereof to the purchaser, such serviceman

SB3019 Enrolled - 1490 - LRB104 20255 HLH 33706 b
shall also refund, to the purchaser, the tax so collected from
the purchaser. When filing his return for the period in which
he refunds such tax to the purchaser, the serviceman may
deduct the amount of the tax so refunded by him to the
purchaser from any other Service Use Tax, Service Occupation
Tax, retailers' occupation tax, or use tax which such
serviceman may be required to pay or remit to the Department,
as shown by such return, provided that the amount of the tax to
be deducted shall previously have been remitted to the
Department by such serviceman. If the serviceman shall not
previously have remitted the amount of such tax to the
Department, he shall be entitled to no deduction hereunder
upon refunding such tax to the purchaser.
Any serviceman filing a return hereunder shall also
include the total tax upon the selling price of tangible
personal property purchased for use by him as an incident to a
sale of service, and such serviceman shall remit the amount of
such tax to the Department when filing such return.
If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable servicemen, who are required to file
returns hereunder and also under the Service Occupation Tax
Act, to furnish all the return information required by both
Acts on the one form.
Where the serviceman has more than one business registered
with the Department under separate registration hereunder,

SB3019 Enrolled - 1491 - LRB104 20255 HLH 33706 b
such serviceman shall not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Tax Reform Fund, a special fund in
the State treasury, the net revenue realized for the preceding
month from the 1% tax imposed under this Act.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 20% of the
net revenue realized for the preceding month from the 6.25%
general rate on transfers of tangible personal property, other
than (i) tangible personal property which is purchased outside
Illinois at retail from a retailer and which is titled or
registered by an agency of this State's government and (ii)
aviation fuel sold on or after December 1, 2019. This
exception for aviation fuel only applies for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be
required for refunds of the 20% portion of the tax on aviation
fuel under this Act, which amount shall be deposited into the
Aviation Fuel Sales Tax Refund Fund. The Department shall only

SB3019 Enrolled - 1492 - LRB104 20255 HLH 33706 b
pay moneys into the State Aviation Program Fund and the
Aviation Fuel Sales Tax Refund Fund under this Act for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 100% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2013, each month the Department shall
pay into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service
Occupation Tax Act, and the Retailers' Occupation Tax Act an
amount equal to the average monthly deficit in the Underground
Storage Tank Fund during the prior year, as certified annually
by the Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Use Tax Act, the Service Occupation Tax Act, and the
Retailers' Occupation Tax Act shall not exceed $18,000,000 in
any State fiscal year. As used in this paragraph, the "average

SB3019 Enrolled - 1493 - LRB104 20255 HLH 33706 b
monthly deficit" shall be equal to the difference between the
average monthly claims for payment by the fund and the average
monthly revenues deposited into the fund, excluding payments
made pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, this Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, each month the Department shall deposit $500,000 into the
State Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the

SB3019 Enrolled - 1494 - LRB104 20255 HLH 33706 b
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Bond Account
in the Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture
securing Bonds issued and outstanding pursuant to the Build
Illinois Bond Act is sufficient, taking into account any
future investment income, to fully provide, in accordance with
such indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be

SB3019 Enrolled - 1495 - LRB104 20255 HLH 33706 b
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited into in the Build Illinois
Bond Account in the Build Illinois Fund in such month shall be
less than the amount required to be transferred in such month
from the Build Illinois Bond Account to the Build Illinois
Bond Retirement and Interest Fund pursuant to Section 13 of
the Build Illinois Bond Act, an amount equal to such
deficiency shall be immediately paid from other moneys
received by the Department pursuant to the Tax Acts to the
Build Illinois Fund; provided, however, that any amounts paid
to the Build Illinois Fund in any fiscal year pursuant to this
sentence shall be deemed to constitute payments pursuant to
clause (b) of the preceding sentence and shall reduce the
amount otherwise payable for such fiscal year pursuant to
clause (b) of the preceding sentence. The moneys received by
the Department pursuant to this Act and required to be
deposited into the Build Illinois Fund are subject to the
pledge, claim and charge set forth in Section 12 of the Build
Illinois Bond Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly

SB3019 Enrolled - 1496 - LRB104 20255 HLH 33706 b
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000

SB3019 Enrolled - 1497 - LRB104 20255 HLH 33706 b
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 300,000,000
2022 300,000,000
2023 300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000

SB3019 Enrolled - 1498 - LRB104 20255 HLH 33706 b
2034 375,000,000
2035 375,000,000
2036 450,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,

SB3019 Enrolled - 1499 - LRB104 20255 HLH 33706 b
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, for aviation fuel sold on or after December 1, 2019,
the Department shall each month deposit into the Aviation Fuel
Sales Tax Refund Fund an amount estimated by the Department to
be required for refunds of the 80% portion of the tax on
aviation fuel under this Act. The Department shall only
deposit moneys into the Aviation Fuel Sales Tax Refund Fund
under this paragraph for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois
Tax Increment Fund 0.27% of 80% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, pursuant to the preceding paragraphs or in
any amendments to this Section hereafter enacted, beginning on
the first day of the first calendar month to occur on or after
August 26, 2014 (the effective date of Public Act 98-1098),
each month, from the collections made under Section 9 of the

SB3019 Enrolled - 1500 - LRB104 20255 HLH 33706 b
Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of
the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act, the Department shall pay into
the Tax Compliance and Administration Fund, to be used,
subject to appropriation, to fund additional auditors and
compliance personnel at the Department of Revenue, an amount
equal to 1/12 of 5% of 80% of the cash receipts collected
during the preceding fiscal year by the Audit Bureau of the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, the Retailers' Occupation Tax Act,
and associated local occupation and use taxes administered by
the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, and the Tax Compliance and Administration
Fund as provided in this Section, beginning on July 1, 2018 the
Department shall pay each month into the Downstate Public
Transportation Fund the moneys required to be so paid under
Section 2-3 of the Downstate Public Transportation Act.
Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from

SB3019 Enrolled - 1501 - LRB104 20255 HLH 33706 b
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim, and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year............................Total Deposit
2024....................................$200,000,000
2025....................................$206,000,000
2026....................................$212,200,000
2027....................................$218,500,000
2028....................................$225,100,000
2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000
2034....................................$341,200,000

SB3019 Enrolled - 1502 - LRB104 20255 HLH 33706 b
2035....................................$351,400,000
2036....................................$361,900,000
2037....................................$372,800,000
2038....................................$384,000,000
2039....................................$395,500,000
2040....................................$407,400,000
2041....................................$419,600,000
2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the State and Local Sales Tax
Reform Fund, the Build Illinois Fund, the McCormick Place
Expansion Project Fund, the Energy Infrastructure Fund, and
the Tax Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 16% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2022 and until July 1, 2023, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 32% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2023 and until July 1, 2024, subject to the

SB3019 Enrolled - 1503 - LRB104 20255 HLH 33706 b
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 48% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2024 and until July 1, 2026, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 64% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning on July 1, 2026, subject to the payment of amounts
into the State and Local Sales Tax Reform Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 80% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. As used in this
paragraph "motor fuel" has the meaning given to that term in
Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the
meaning given to that term in Section 3-40 of the Use Tax Act.

SB3019 Enrolled - 1504 - LRB104 20255 HLH 33706 b
Until July 1, 2025, of the remainder of the moneys
received by the Department pursuant to this Act, 75% thereof
shall be paid into the General Revenue Fund of the State
treasury and 25% shall be reserved in a special account and
used only for the transfer to the Common School Fund as part of
the monthly transfer from the General Revenue Fund in
accordance with Section 8a of the State Finance Act. Beginning
July 1, 2025, of the remainder of the moneys received by the
Department pursuant to this Act, 75% shall be deposited into
the General Revenue Fund and 25% shall be deposited into the
Common School Fund.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
(Source: P.A. 103-363, eff. 7-28-23; 103-592, Article 75,
Section 75-10, eff. 1-1-25; 103-592, Article 110, Section
110-10, eff. 6-7-24; 104-6, Article 5, Section 5-15, eff.
6-16-25; 104-6, Article 35, Section 35-25, eff. 6-16-25;

SB3019 Enrolled - 1505 - LRB104 20255 HLH 33706 b
104-417, eff. 8-15-25; revised 9-10-25.)
(Text of Section after amendment by P.A. 104-457)
Sec. 9. Each serviceman required or authorized to collect
the tax herein imposed shall pay to the Department the amount
of such tax (except as otherwise provided) at the time when he
is required to file his return for the period during which such
tax was collected, less a discount of 2.1% prior to January 1,
1990 and 1.75% on and after January 1, 1990, or $5 per calendar
year, whichever is greater, which is allowed to reimburse the
serviceman for expenses incurred in collecting the tax,
keeping records, preparing and filing returns, remitting the
tax, and supplying data to the Department on request.
Beginning with returns due on or after January 1, 2025, the
vendor's discount allowed in this Section, the Retailers'
Occupation Tax Act, the Service Occupation Tax Act, and the
Use Tax Act, including any local tax administered by the
Department and reported on the same return, shall not exceed
$1,000 per month in the aggregate. When determining the
discount allowed under this Section, servicemen shall include
the amount of tax that would have been due at the 1% rate but
for the 0% rate imposed under Public Act 102-700. The discount
under this Section is not allowed for the 1.25% portion of
taxes paid on aviation fuel that is subject to the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The
discount allowed under this Section is allowed only for

SB3019 Enrolled - 1506 - LRB104 20255 HLH 33706 b
returns that are filed in the manner required by this Act. The
Department may disallow the discount for servicemen whose
certificate of registration is revoked at the time the return
is filed, but only if the Department's decision to revoke the
certificate of registration has become final. A serviceman
need not remit that part of any tax collected by him to the
extent that he is required to pay and does pay the tax imposed
by the Service Occupation Tax Act with respect to his sale of
service involving the incidental transfer by him of the same
property.
Except as provided hereinafter in this Section, on or
before the twentieth day of each calendar month, such
serviceman shall file a return for the preceding calendar
month in accordance with reasonable Rules and Regulations to
be promulgated by the Department. Such return shall be filed
on a form prescribed by the Department and shall contain such
information as the Department may reasonably require. The
return shall include the gross receipts which were received
during the preceding calendar month or quarter on the
following items upon which tax would have been due but for the
0% rate imposed under Public Act 102-700: (i) food for human
consumption that is to be consumed off the premises where it is
sold (other than alcoholic beverages, food consisting of or
infused with adult use cannabis, soft drinks, and food that
has been prepared for immediate consumption); and (ii) food
prepared for immediate consumption and transferred incident to

SB3019 Enrolled - 1507 - LRB104 20255 HLH 33706 b
a sale of service subject to this Act or the Service Occupation
Tax Act by an entity licensed under the Hospital Licensing
Act, the Nursing Home Care Act, the Assisted Living and Shared
Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
Specialized Mental Health Rehabilitation Act of 2013, or the
Child Care Act of 1969, or an entity that holds a permit issued
pursuant to the Life Care Facilities Act. The return shall
also include the amount of tax that would have been due on the
items listed in the previous sentence but for the 0% rate
imposed under Public Act 102-700.
In the case of leases, except as otherwise provided in
this Act, the lessor, in collecting the tax, may collect for
each tax return period only the tax applicable to that part of
the selling price actually received during such tax return
period.
On and after January 1, 2018, with respect to servicemen
whose annual gross receipts average $20,000 or more, all
returns required to be filed pursuant to this Act shall be
filed electronically. Servicemen who demonstrate that they do
not have access to the Internet or demonstrate hardship in
filing electronically may petition the Department to waive the
electronic filing requirement.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The

SB3019 Enrolled - 1508 - LRB104 20255 HLH 33706 b
taxpayer shall also file a return with the Department for each
of the first 2 two months of each calendar quarter, on or
before the twentieth day of the following calendar month,
stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in business as a serviceman in this
State;
3. The total amount of taxable receipts received by
him during the preceding calendar month, including
receipts from charge and time sales, but less all
deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the Department
may require.
Each serviceman required or authorized to collect the tax
imposed by this Act on aviation fuel transferred as an
incident of a sale of service in this State during the
preceding calendar month shall, instead of reporting and
paying tax on aviation fuel as otherwise required by this
Section, report and pay such tax on a separate aviation fuel
tax return. The requirements related to the return shall be as
otherwise provided in this Section. Notwithstanding any other

SB3019 Enrolled - 1509 - LRB104 20255 HLH 33706 b
provisions of this Act to the contrary, servicemen collecting
tax on aviation fuel shall file all aviation fuel tax returns
and shall make all aviation fuel tax payments by electronic
means in the manner and form required by the Department. For
purposes of this Section, "aviation fuel" means jet fuel and
aviation gasoline.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Notwithstanding any other provision of this Act to the
contrary, servicemen subject to tax on cannabis shall file all
cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall
make all payments required by rules of the Department by
electronic funds transfer. Beginning October 1, 1995, a
taxpayer who has an average monthly tax liability of $50,000
or more shall make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1,
2000, a taxpayer who has an annual tax liability of $200,000 or

SB3019 Enrolled - 1510 - LRB104 20255 HLH 33706 b
more shall make all payments required by rules of the
Department by electronic funds transfer. The term "annual tax
liability" shall be the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year. The term "average monthly
tax liability" means the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year divided by 12. Beginning
on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the
Department of Revenue Law shall make all payments required by
rules of the Department by electronic funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make
payments by electronic funds transfer. All taxpayers required
to make payments by electronic funds transfer shall make those
payments for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those
payments in the manner authorized by the Department.

SB3019 Enrolled - 1511 - LRB104 20255 HLH 33706 b
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
If the serviceman is otherwise required to file a monthly
return and if the serviceman's average monthly tax liability
to the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February, and March of a given
year being due by April 20 of such year; with the return for
April, May, and June of a given year being due by July 20 of
such year; with the return for July, August, and September of a
given year being due by October 20 of such year, and with the
return for October, November, and December of a given year
being due by January 20 of the following year.
If the serviceman is otherwise required to file a monthly
or quarterly return and if the serviceman's average monthly
tax liability to the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January 20
of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act concerning
the time within which a serviceman may file his return, in the
case of any serviceman who ceases to engage in a kind of

SB3019 Enrolled - 1512 - LRB104 20255 HLH 33706 b
business which makes him responsible for filing returns under
this Act, such serviceman shall file a final return under this
Act with the Department not more than one month after
discontinuing such business.
Where a serviceman collects the tax with respect to the
selling price of property which he sells and the purchaser
thereafter returns such property and the serviceman refunds
the selling price thereof to the purchaser, such serviceman
shall also refund, to the purchaser, the tax so collected from
the purchaser. When filing his return for the period in which
he refunds such tax to the purchaser, the serviceman may
deduct the amount of the tax so refunded by him to the
purchaser from any other Service Use Tax, Service Occupation
Tax, retailers' occupation tax, or use tax which such
serviceman may be required to pay or remit to the Department,
as shown by such return, provided that the amount of the tax to
be deducted shall previously have been remitted to the
Department by such serviceman. If the serviceman shall not
previously have remitted the amount of such tax to the
Department, he shall be entitled to no deduction hereunder
upon refunding such tax to the purchaser.
Any serviceman filing a return hereunder shall also
include the total tax upon the selling price of tangible
personal property purchased for use by him as an incident to a
sale of service, and such serviceman shall remit the amount of
such tax to the Department when filing such return.

SB3019 Enrolled - 1513 - LRB104 20255 HLH 33706 b
If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable servicemen, who are required to file
returns hereunder and also under the Service Occupation Tax
Act, to furnish all the return information required by both
Acts on the one form.
Where the serviceman has more than one business registered
with the Department under separate registration hereunder,
such serviceman shall not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Tax Reform Fund, a special fund in
the State treasury, the net revenue realized for the preceding
month from the 1% tax imposed under this Act.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 20% of the
net revenue realized for the preceding month from the 6.25%
general rate on transfers of tangible personal property, other
than (i) tangible personal property which is purchased outside
Illinois at retail from a retailer and which is titled or
registered by an agency of this State's government and (ii)
aviation fuel sold on or after December 1, 2019. This
exception for aviation fuel only applies for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the State.

SB3019 Enrolled - 1514 - LRB104 20255 HLH 33706 b
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be
required for refunds of the 20% portion of the tax on aviation
fuel under this Act, which amount shall be deposited into the
Aviation Fuel Sales Tax Refund Fund. The Department shall only
pay moneys into the State Aviation Program Fund and the
Aviation Fuel Sales Tax Refund Fund under this Act for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 100% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2013, each month the Department shall
pay into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service

SB3019 Enrolled - 1515 - LRB104 20255 HLH 33706 b
Occupation Tax Act, and the Retailers' Occupation Tax Act an
amount equal to the average monthly deficit in the Underground
Storage Tank Fund during the prior year, as certified annually
by the Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Use Tax Act, the Service Occupation Tax Act, and the
Retailers' Occupation Tax Act shall not exceed $18,000,000 in
any State fiscal year. As used in this paragraph, the "average
monthly deficit" shall be equal to the difference between the
average monthly claims for payment by the fund and the average
monthly revenues deposited into the fund, excluding payments
made pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, this Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, each month the Department shall deposit $500,000 into the
State Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax

SB3019 Enrolled - 1516 - LRB104 20255 HLH 33706 b
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Bond Account
in the Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under

SB3019 Enrolled - 1517 - LRB104 20255 HLH 33706 b
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture
securing Bonds issued and outstanding pursuant to the Build
Illinois Bond Act is sufficient, taking into account any
future investment income, to fully provide, in accordance with
such indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited into in the Build Illinois
Bond Account in the Build Illinois Fund in such month shall be
less than the amount required to be transferred in such month
from the Build Illinois Bond Account to the Build Illinois
Bond Retirement and Interest Fund pursuant to Section 13 of
the Build Illinois Bond Act, an amount equal to such
deficiency shall be immediately paid from other moneys
received by the Department pursuant to the Tax Acts to the
Build Illinois Fund; provided, however, that any amounts paid
to the Build Illinois Fund in any fiscal year pursuant to this
sentence shall be deemed to constitute payments pursuant to
clause (b) of the preceding sentence and shall reduce the
amount otherwise payable for such fiscal year pursuant to

SB3019 Enrolled - 1518 - LRB104 20255 HLH 33706 b
clause (b) of the preceding sentence. The moneys received by
the Department pursuant to this Act and required to be
deposited into the Build Illinois Fund are subject to the
pledge, claim and charge set forth in Section 12 of the Build
Illinois Bond Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000

SB3019 Enrolled - 1519 - LRB104 20255 HLH 33706 b
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 300,000,000
2022 300,000,000
2023 300,000,000
2024 300,000,000
2025 300,000,000

SB3019 Enrolled - 1520 - LRB104 20255 HLH 33706 b
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034 375,000,000
2035 375,000,000
2036 450,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition

SB3019 Enrolled - 1521 - LRB104 20255 HLH 33706 b
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, for aviation fuel sold on or after December 1, 2019,
the Department shall each month deposit into the Aviation Fuel
Sales Tax Refund Fund an amount estimated by the Department to
be required for refunds of the 80% portion of the tax on
aviation fuel under this Act. The Department shall only
deposit moneys into the Aviation Fuel Sales Tax Refund Fund
under this paragraph for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois
Tax Increment Fund 0.27% of 80% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling

SB3019 Enrolled - 1522 - LRB104 20255 HLH 33706 b
price of tangible personal property.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, pursuant to the preceding paragraphs or in
any amendments to this Section hereafter enacted, beginning on
the first day of the first calendar month to occur on or after
August 26, 2014 (the effective date of Public Act 98-1098),
each month, from the collections made under Section 9 of the
Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of
the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act, the Department shall pay into
the Tax Compliance and Administration Fund, to be used,
subject to appropriation, to fund additional auditors and
compliance personnel at the Department of Revenue, an amount
equal to 1/12 of 5% of 80% of the cash receipts collected
during the preceding fiscal year by the Audit Bureau of the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, the Retailers' Occupation Tax Act,
and associated local occupation and use taxes administered by
the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, and the Tax Compliance and Administration
Fund as provided in this Section, beginning on July 1, 2018 the
Department shall pay each month into the Downstate Public
Transportation Fund the moneys required to be so paid under

SB3019 Enrolled - 1523 - LRB104 20255 HLH 33706 b
Section 2-3 of the Downstate Public Transportation Act.
Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim, and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year............................Total Deposit
2024....................................$200,000,000
2025....................................$206,000,000
2026....................................$212,200,000

SB3019 Enrolled - 1524 - LRB104 20255 HLH 33706 b
2027....................................$218,500,000
2028....................................$225,100,000
2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000
2034....................................$341,200,000
2035....................................$351,400,000
2036....................................$361,900,000
2037....................................$372,800,000
2038....................................$384,000,000
2039....................................$395,500,000
2040....................................$407,400,000
2041....................................$419,600,000
2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the State and Local Sales Tax
Reform Fund, the Build Illinois Fund, the McCormick Place
Expansion Project Fund, the Energy Infrastructure Fund, and
the Tax Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 16% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2022 and until July 1, 2023, subject to the

SB3019 Enrolled - 1525 - LRB104 20255 HLH 33706 b
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 32% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2023 and until July 1, 2024, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 48% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2024 and until July 1, 2026, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 64% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning on July 1, 2026, subject to the payment of amounts
into the State and Local Sales Tax Reform Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the

SB3019 Enrolled - 1526 - LRB104 20255 HLH 33706 b
Illinois Tax Increment Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Public Transportation
Fund and the Downstate Public Transportation Fund the amount
estimated to represent 80% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Those moneys
shall be apportioned as follows: 85% into the Public
Transportation Fund and 15% into the Downstate Public
Transportation Fund. As used in this paragraph "motor fuel"
has the meaning given to that term in Section 1.1 of the Motor
Fuel Tax Law, and "gasohol" has the meaning given to that term
in Section 3-40 of the Use Tax Act.
Until July 1, 2025, of the remainder of the moneys
received by the Department pursuant to this Act, 75% thereof
shall be paid into the General Revenue Fund of the State
treasury and 25% shall be reserved in a special account and
used only for the transfer to the Common School Fund as part of
the monthly transfer from the General Revenue Fund in
accordance with Section 8a of the State Finance Act. Beginning
July 1, 2025, of the remainder of the moneys received by the
Department pursuant to this Act, 75% shall be deposited into
the General Revenue Fund and 25% shall be deposited into the
Common School Fund.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from

SB3019 Enrolled - 1527 - LRB104 20255 HLH 33706 b
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
(Source: P.A. 103-363, eff. 7-28-23; 103-592, Article 75,
Section 75-10, eff. 1-1-25; 103-592, Article 110, Section
110-10, eff. 6-7-24; 104-6, Article 5, Section 5-15, eff.
6-16-25; 104-6, Article 35, Section 35-25, eff. 6-16-25;
104-417, eff. 8-15-25; 104-457, eff. 6-1-26; revised 1-12-26.)
ARTICLE 805
Section 805-5. The Illinois Municipal Code is amended by
changing Sections 8-3-14b and 8-3-14c and by adding Section
8-3-14d as follows:
(65 ILCS 5/8-3-14b)
(Section scheduled to be repealed on January 1, 2027)
Sec. 8-3-14b. Municipal hotel operators' tax in DuPage
County. For any municipality located within DuPage County that
belongs to a not-for-profit organization headquartered in
DuPage County that is recognized by the Department of Commerce

SB3019 Enrolled - 1528 - LRB104 20255 HLH 33706 b
and Economic Opportunity as a certified local tourism and
convention bureau entitled to receive State tourism grant
funds, not less than 75% of the amounts collected pursuant to
Section 8-3-14 shall be expended by the municipality to
promote tourism and conventions within that municipality or
otherwise to attract nonresident overnight visitors to the
municipality, and the remainder of the amounts collected by a
municipality within DuPage County pursuant to Section 8-3-14
may be expended by the municipality for economic development
or capital infrastructure.
This Section is repealed on January 1, 2029 2027.
(Source: P.A. 102-699, eff. 4-19-22; 103-601, eff. 7-1-24.)
(65 ILCS 5/8-3-14c)
(Section scheduled to be repealed on January 1, 2027)
Sec. 8-3-14c. Municipal hotel use tax in DuPage County.
For any municipality located within DuPage County that belongs
to a not-for-profit organization headquartered in DuPage
County that is recognized by the Department of Commerce and
Economic Opportunity as a certified local tourism and
convention bureau entitled to receive State tourism grant
funds, not less than 75% of the amounts collected pursuant to
Section 8-3-14a shall be expended by the municipality to
promote tourism and conventions within that municipality or
otherwise to attract nonresident overnight visitors to the
municipality, and the remainder of the amounts collected by a

SB3019 Enrolled - 1529 - LRB104 20255 HLH 33706 b
municipality within DuPage County pursuant to Section 8-3-14a
may be expended by the municipality for economic development
or capital infrastructure.
This Section is repealed on January 1, 2029 2027.
(Source: P.A. 102-699, eff. 4-19-22; 103-601, eff. 7-1-24.)
(65 ILCS 5/8-3-14d new)
Sec. 8-3-14d. Municipal hotel operators' occupation and
use tax reporting.
(a) The corporate authorities of a municipality that
imposes a tax under Section 8-3-14, Section 8-3-14a, Section
8-3-14b, or Section 8-3-14c of this Act shall prepare an
annual report on (i) the estimated and actual collections of
the tax, (ii) the estimated and actual expenditures of the
proceeds of the tax, and (iii) a financial accounting and
narrative of how the expenditures of the tax have supported
increased overnight hotel room stays, conventions, group
travel, meetings and visitor spending within that
municipality.
(b) The annual reports required by this Section shall be
made publicly available by publication in a local newspaper of
general circulation in the municipality or by publication on
the municipality's Internet website. Annual reports published
online must be maintained on the municipality's website for a
period of not less than 5 years.
(c) For Fiscal Year 2028 and each fiscal year thereafter,

SB3019 Enrolled - 1530 - LRB104 20255 HLH 33706 b
municipalities shall transmit the report required pursuant to
this Section to the State Comptroller annually in a manner and
format prescribed by the State Comptroller. The State
Comptroller must post on the State Comptroller's official
website the information submitted by a municipality pursuant
to this Section. The information must be posted no later than
45 days after the State Comptroller receives the information
from the municipality. The State Comptroller must also post a
list of the municipalities not in compliance with the
reporting requirements of this Section.
ARTICLE 810
Section 810-5. The Illinois Housing Development Act is
amended by changing Section 7.28 as follows:
(20 ILCS 3805/7.28)
Sec. 7.28. Tax credit for donation to sponsors. The
Authority may administer and adopt rules for an affordable
housing tax donation credit program to provide tax credits for
donations as set forth in this Section.
(a) In this Section:
"Administrative housing agency" means either the Authority
or an agency of the City of Chicago.
"Affordable housing project" means either:
(1) a rental project in which at least 25% of the units

SB3019 Enrolled - 1531 - LRB104 20255 HLH 33706 b
have rents (including tenant-paid heat) that do not
exceed, on a monthly basis, maximum gross rent figures, as
published by the Authority, that are:
(i) based on data published annually by the U.S.
Department of Housing and Urban Development;
(ii) based on the annual income of households
earning 60% of the area median income;
(iii) computed using a 30% of gross monthly income
standard; and
(iv) adjusted for unit size and at least 25% of the
units are occupied by persons and families whose
incomes do not exceed 60% of the median family income
for the geographic area in which the residential unit
is located; or
(2) a unit for sale to homebuyers whose gross
household income is at or below (A) 60% of the area median
income (for taxable years beginning prior to January 1,
2022) or (B) 120% of the area median income (for taxable
years beginning on or after January 1, 2022) and who pay no
more than 30% of their gross household income for mortgage
principal, interest, property taxes, and property
insurance (PITI).
"Donation" means money, securities, or real or personal
property that is donated to a not-for-profit sponsor that is
used solely for costs associated with either (i) purchasing,
constructing, or rehabilitating an affordable housing project

SB3019 Enrolled - 1532 - LRB104 20255 HLH 33706 b
in this State, (ii) an employer-assisted housing project in
this State, (iii) general operating support, or (iv) technical
assistance as defined by this Section.
"Employer-assisted housing project" means either
down-payment assistance, reduced-interest mortgages, mortgage
guarantee programs, rental subsidies, or individual
development account savings plans that are provided by
employers to employees to assist in securing affordable
housing near the workplace, that are restricted to housing
near the workplace, and that are restricted to employees whose
gross household income is at or below 120% of the area median
income.
"General operating support" means any cost incurred by a
sponsor that is a part of its general program costs and is not
limited to costs directly incurred by the affordable housing
project.
"Geographical area" means the metropolitan area or county
designated as an area by the federal Department of Housing and
Urban Development under Section 8 of the United States Housing
Act of 1937, as amended, for purposes of determining fair
market rental rates.
"Median income" means the incomes that are determined by
the federal Department of Housing and Urban Development
guidelines and adjusted for family size.
"Project" means an affordable housing project, an
employer-assisted housing project, general operating support,

SB3019 Enrolled - 1533 - LRB104 20255 HLH 33706 b
or technical assistance.
"Sponsor" means a not-for-profit organization that (i) is
organized as a not-for-profit organization under the laws of
this State or another state and (1) for an affordable housing
project, has as one of its purposes the development of
affordable housing; (2) for an employer-assisted housing
project, has as one of its purposes home ownership education;
and (3) for a technical assistance project, has as one of its
purposes either the development of affordable housing or home
ownership education; (ii) is organized for the purpose of
constructing or rehabilitating affordable housing units and
has been issued a ruling from the Internal Revenue Service of
the United States Department of the Treasury that the
organization is exempt from income taxation under provisions
of the Internal Revenue Code; or (iii) is an organization
designated as a community development corporation by the
United States government under Title VII of the Economic
Opportunity Act of 1964.
"Tax credit" means a tax credit allowed under Section 214
of the Illinois Income Tax Act.
"Technical assistance" means any cost incurred by a
sponsor for project planning, assistance with applying for
financing, or counseling services provided to prospective
homebuyers.
(b) A sponsor must apply to an administrative housing
agency for approval of the project. The administrative housing

SB3019 Enrolled - 1534 - LRB104 20255 HLH 33706 b
agency must reserve a specific amount of tax credits for each
approved project. Tax credits for general operating support
can only be reserved as part of a reservation of tax credits
for an affordable housing project, an employer-assisted
housing project, or technical assistance. No tax credits shall
be allowed for a project without a reservation of such tax
credits by an administrative housing agency for that project.
(c) The Authority must adopt rules establishing criteria
for eligible costs and donations, issuing and verifying tax
credits, and selecting projects that are eligible for a tax
credit.
(d) Tax credits for employer-assisted housing projects are
limited to that pool of tax credits that have been set aside
for employer-assisted housing. Tax credits for general
operating support are limited to 10% of the total tax credit
reservation for the related project (other than general
operating support) and are also limited to that pool of tax
credits that have been set aside for general operating
support. Tax credits for technical assistance are limited to
that pool of tax credits that have been set aside for technical
assistance.
(e) The amount of tax credits reserved by the
administrative housing agency for an approved project is
limited to $32,850,352 in State fiscal years 2022 and 2023 and
shall increase by 5% each fiscal year thereafter through
fiscal year 2026. Beginning in State fiscal year 2027, the

SB3019 Enrolled - 1535 - LRB104 20255 HLH 33706 b
amount of tax credits reserved by the administrative housing
agency for an approved project is limited to $41,831,227 in
State fiscal year 2027 and shall increase by 10% each fiscal
year thereafter. The City of Chicago shall receive 24.5% of
total tax credits authorized for each fiscal year. The
Authority shall receive the balance of the tax credits
authorized for each fiscal year. The tax credits may be used
anywhere in this State. The tax credits have the following
set-asides:
(1) for employer-assisted housing projects, $2
million; and
(2) for general operating support and technical
assistance, $1 million.
The balance of the funds must be used for affordable
housing projects. During the first 9 months of a fiscal year,
if an administrative housing agency is unable to reserve the
tax credits set aside for the purposes described in subsection
(e), the administrative housing agency may reserve the tax
credits for any approved projects.
(f) The administrative housing agency that reserves tax
credits for an affordable housing project must record against
the land upon which the affordable housing project is located
an instrument to assure that the property maintains its
affordable housing compliance for a minimum of 10 years. The
Authority has flexibility to assure that the instrument does
not cause undue hardship on homeowners.

SB3019 Enrolled - 1536 - LRB104 20255 HLH 33706 b
(Source: P.A. 102-175, eff. 7-29-21.)
Section 810-10. The Illinois Income Tax Act is amended by
changing Section 214 as follows:
(35 ILCS 5/214)
Sec. 214. Tax credit for affordable housing donations.
(a) Beginning with taxable years ending on or after
December 31, 2001 and until the taxable year ending on
December 31, 2036, December 31, 2026, a taxpayer who makes a
donation under Section 7.28 of the Illinois Housing
Development Act is entitled to a credit against the tax
imposed by subsections (a) and (b) of Section 201 in an amount
equal to 50% of the value of the donation. For taxable years
ending before December 31, 2023, partners, shareholders of
subchapter S corporations, and owners of limited liability
companies (if the limited liability company is treated as a
partnership for purposes of federal and State income taxation)
are entitled to a credit under this Section to be determined in
accordance with the determination of income and distributive
share of income under Sections 702 and 703 and subchapter S of
the Internal Revenue Code. For taxable years ending on or
after December 31, 2023, partners and shareholders of
subchapter S corporations are entitled to a credit under this
Section as provided in Section 251. Persons or entities not
subject to the tax imposed by subsections (a) and (b) of

SB3019 Enrolled - 1537 - LRB104 20255 HLH 33706 b
Section 201 and who make a donation under Section 7.28 of the
Illinois Housing Development Act are entitled to a credit as
described in this subsection and may transfer that credit as
described in subsection (c).
(b) If the amount of the credit exceeds the tax liability
for the year, the excess may be carried forward and applied to
the tax liability of the 5 taxable years following the excess
credit year. The tax credit shall be applied to the earliest
year for which there is a tax liability. If there are credits
for more than one year that are available to offset a
liability, the earlier credit shall be applied first.
(c) The transfer of the tax credit allowed under this
Section may be made (i) to the purchaser of land that has been
designated solely for affordable housing projects in
accordance with the Illinois Housing Development Act or (ii)
to another donor who has also made a donation in accordance
with Section 7.28 of the Illinois Housing Development Act.
(d) A taxpayer claiming the credit provided by this
Section must maintain and record any information that the
Department may require by regulation regarding the project for
which the credit is claimed. When claiming the credit provided
by this Section, the taxpayer must provide information
regarding the taxpayer's donation to the project under the
Illinois Housing Development Act.
(Source: P.A. 102-16, eff. 6-17-21; 102-175, eff. 7-29-21;
103-396, eff. 1-1-24.)

SB3019 Enrolled - 1538 - LRB104 20255 HLH 33706 b
ARTICLE 815
Section 815-5. The Illinois Income Tax Act is amended by
changing Section 222 as follows:
(35 ILCS 5/222)
Sec. 222. Live theater production credit.
(a) For tax years beginning on or after January 1, 2012 and
beginning prior to January 1, 2039, January 1, 2027, a
taxpayer who has received a tax credit award under the Live
Theater Production Tax Credit Act for a long-run production, a
pre-Broadway production, or a commercial Broadway touring show
is entitled to a credit against the taxes imposed under
subsections (a) and (b) of Section 201 of this Act in an amount
determined under that Act by the Department of Commerce and
Economic Opportunity.
(b) For taxable years ending before December 31, 2023, if
the taxpayer is a partnership, limited liability partnership,
limited liability company, or Subchapter S corporation, the
tax credit award is allowed to the partners, unit holders, or
shareholders in accordance with the determination of income
and distributive share of income under Sections 702 and 704
and Subchapter S of the Internal Revenue Code. For taxable
years ending on or after December 31, 2023, if the taxpayer is
a partnership or Subchapter S corporation, then the provisions

SB3019 Enrolled - 1539 - LRB104 20255 HLH 33706 b
of Section 251 apply.
(c) A sale, assignment, or transfer of the tax credit
award may be made by the taxpayer earning the credit within one
year after the credit is awarded in accordance with rules
adopted by the Department of Commerce and Economic
Opportunity.
(d) The Department of Revenue, in cooperation with the
Department of Commerce and Economic Opportunity, shall adopt
rules to enforce and administer the provisions of this
Section.
(e) The tax credit award may not be carried back. If the
amount of the credit exceeds the tax liability for the year,
the excess may be carried forward and applied to the tax
liability of the 5 tax years following the excess credit year.
The tax credit award shall be applied to the earliest year for
which there is a tax liability. If there are credits from more
than one tax year that are available to offset liability, the
earlier credit shall be applied first. In no event may a credit
under this Section reduce the taxpayer's liability to less
than zero.
(Source: P.A. 102-16, eff. 6-17-21; 103-396, eff. 1-1-24;
103-592, eff. 6-7-24.)
Section 815-10. The Live Theater Production Tax Credit Act
is amended by changing Sections 10-10 and 10-20 as follows:

SB3019 Enrolled - 1540 - LRB104 20255 HLH 33706 b
(35 ILCS 17/10-20)
Sec. 10-20. Tax credit award. Subject to the conditions
set forth in this Act, an applicant is entitled to a tax credit
award as approved by the Department for qualifying Illinois
labor expenditures and Illinois production spending for each
tax year in which the applicant is awarded an accredited
theater production certificate issued by the Department. The
amount of tax credits awarded pursuant to this Act shall not
exceed $2,000,000 in any State fiscal year ending on or before
June 30, 2022. The amount of tax credits awarded pursuant to
this Act for the State fiscal year ending on June 30, 2023 or
the State fiscal year ending on June 30, 2024 shall not exceed
$4,000,000. For the State fiscal year ending on June 30, 2023
and the State fiscal year ending on June 30, 2024, no more than
$2,000,000 in credits may be awarded in either of those fiscal
years to accredited theater productions that are not
commercial Broadway touring shows, and no more than $2,000,000
in credits may be awarded in either of those fiscal years to
commercial Broadway touring shows. For State fiscal years
ending on or after June 30, 2025, the amount of tax credits
awarded under this Act shall not exceed $6,000,000, with no
more than $2,000,000 in credits awarded for long-run
productions and pre-Broadway productions, no more than
$2,000,000 in credits awarded for commercial Broadway touring
shows, and no more than $2,000,000 in credits awarded for
non-profit theater productions. If, in any State fiscal year,

SB3019 Enrolled - 1541 - LRB104 20255 HLH 33706 b
less than $2,000,000 in credits under this Act are awarded for
long-run productions and pre-Broadway productions, then the
difference between $2,000,000 and the amount of credits
awarded for long-run productions and pre-Broadway productions
in that fiscal year may be added to the $2,000,000 in credits
allowed to be awarded for commercial Broadway touring shows in
that State fiscal year.
The $2,000,000 in credits that may be awarded for
non-profit theater productions under this Act in a State
fiscal year shall be allocated as follows:
(1) no credits may be awarded for non-profit theater
productions that have an annual operating budget of less
than $25,000;
(2) no more than $225,000 in credits may be awarded,
in the aggregate, for non-profit theater productions that
have an annual operating budget of $25,000 or more but
less than $250,000;
(3) no more than $225,000 in credits may be awarded,
in the aggregate, for non-profit theater productions that
have an annual operating budget of $250,000 or more but
less than $1,000,000;
(4) no more than $250,000 in credits may be awarded,
in the aggregate, for non-profit theater productions that
have an annual operating budget of $1,000,000 or more but
less than $2,500,000;
(5) no more than $300,000 in credits may be awarded,

SB3019 Enrolled - 1542 - LRB104 20255 HLH 33706 b
in the aggregate, for non-profit theater productions that
have an annual operating budget of $2,500,000 or more but
less than $5,000,000;
(6) no more than $300,000 in credits may be awarded,
in the aggregate, for non-profit theater productions that
have an annual operating budget of $5,000,000 or more but
less than $10,000,000; and
(7) no more than $700,000 in credits may be awarded,
in the aggregate, for non-profit theater productions that
have an annual operating budget of $10,000,000 or more.
Credits shall be awarded on a first-come, first-served
basis. Notwithstanding the foregoing, if the amount of credits
applied for in any fiscal year exceeds the amount authorized
to be awarded under this Section, the excess credit amount
shall be awarded in the next fiscal year in which credits
remain available for award and shall be treated as having been
applied for on the first day of that fiscal year.
(Source: P.A. 102-700, eff. 4-19-22; 102-1112, eff. 12-21-22;
103-592, eff. 6-7-24; 103-1055, eff. 12-20-24.)
ARTICLE 820
Section 820-5. The Property Tax Code is amended by
changing Sections 10-115, 10-125, 10-135, 10-145, 10-150, and
10-152 as follows:

SB3019 Enrolled - 1543 - LRB104 20255 HLH 33706 b
(35 ILCS 200/10-115)
Sec. 10-115. Department guidelines and valuations for
farmland. The Department shall issue guidelines and
recommendations for the valuation of farmland to achieve
equitable assessment within and between counties.
The Director of Revenue shall appoint a five-person
Farmland Assessment Technical Advisory Board, consisting of
technical experts from the colleges or schools of agriculture
of the State universities and State and federal agricultural
agencies, to advise in and provide data and technical
information needed for implementation of this Section.
By May 1 of each year, the Department shall certify to each
chief county assessment officer the following, calculated from
data provided by the Farmland Assessment Technical Advisory
Board, on a per acre basis by soil productivity index for
harvested cropland, using moving averages based upon for the
most recent 5-year period for which data are available:
(a) gross income, estimated by using annual yields per
acre, as assigned to soil productivity indices for the
major crops grown in this State, the crop mix for each soil
productivity index as determined by a Farmland Assessment
Technical Advisory Board representative from the
Department of Agricultural and Consumer Economics in the
College of Agricultural, Consumer, and Environmental
Sciences at the College of Agriculture of the University
of Illinois, and annual average prices received by farmers

SB3019 Enrolled - 1544 - LRB104 20255 HLH 33706 b
for principal crops from associated publicly reported data
as published by the Illinois Crop Reporting Service;
(b) non-land production costs for each soil
productivity index as calculated by the Department of
Agricultural and Consumer Economics in , other than land
costs, provided by the College of Agricultural, Consumer,
and Environmental Sciences at Agriculture of the
University of Illinois;
(c) net return to land, for each soil productivity
index, which is calculated by subtracting non-land
production costs from estimated gross income; , which
shall be the difference between (a) and (b) above;
(d) a proposed agricultural economic value (AEV)
determined by dividing the net return to land by a
farmland income capitalization rate, which shall be
determined based on the calculation year rate under
Section 2032A of the Internal Revenue Code, or its analog
in cases when the rate is not published by the Farm Credit
Bank district that contains Illinois, plus 3%; except
that, in cases when that calculated rate exceeds 10%, the
income capitalization rate will be 10%; and, in cases when
that calculated rate falls below 8%, the income
capitalization rate will equal 8% the moving average of
the Federal Land Bank farmland mortgage interest rate as
calculated by the Department;
(e) the equalized assessed value per acre of farmland

SB3019 Enrolled - 1545 - LRB104 20255 HLH 33706 b
for each soil productivity index, which shall be 33-1/3%
of the agricultural economic value, or the percentage as
provided under Section 17-5; but any increase or decrease
in the equalized assessed value per acre by soil
productivity index shall not exceed 10% from the immediate
preceding year's soil productivity index certified
assessed value of the median cropped soil; in tax year
2015 only, that 10% limitation shall be reduced by $5 per
acre;
(f) a proposed average equalized assessed value per
acre of cropland for each individual county, weighted by
the distribution of soils by productivity index in the
county; and
(g) a proposed average equalized assessed value per
acre for all farmland in each county, weighted (i) to
consider the proportions of all farmland acres in the
county which are cropland, permanent pasture, and other
farmland, and (ii) to reflect the valuations for those
types of land and debasements for slope and erosion as
required by Section 10-125.
(Source: P.A. 98-109, eff. 7-25-13.)
(35 ILCS 200/10-125)
Sec. 10-125. Assessment level by type of farmland.
Cropland, permanent pasture, and other farmland shall be
defined according to guidelines issued by the Department of

SB3019 Enrolled - 1546 - LRB104 20255 HLH 33706 b
Revenue U.S. Census Bureau definitions in use during that
assessment year and assessed in the following way:
(a) Cropland shall be assessed in accordance with the
equalized assessed value of its soil productivity index as
certified by the Department and shall be debased to take
into account factors including, but not limited to, slope,
drainage, ponding, flooding, and field size and shape.
(b) Permanent pasture shall be assessed at 1/3 of its
debased productivity index equalized assessed value as
cropland.
(c) Other farmland shall be assessed at 1/6 of its
debased productivity index equalized assessed value as
cropland.
(d) Wasteland shall be assessed on its contributory
value to the farmland parcel.
In no case shall the equalized assessed value of permanent
pasture be below 1/3, nor the equalized assessed value of
other farmland, except wasteland, be below 1/6, of the
equalized assessed value per acre of cropland of the lowest
productivity index certified under Section 10-115.
(Source: P.A. 86-954; 88-455.)
(35 ILCS 200/10-135)
Sec. 10-135. Farmland not subject to equalization. The
assessed valuation of farmland assessed under Sections 10-110
through 10-130 shall not be subject to equalization by means

SB3019 Enrolled - 1547 - LRB104 20255 HLH 33706 b
of State equalization factors. Equalization factors applied by
a chief county assessment officer or a Board of Review under
Sections 9-205 and 16-60 shall be applied to assessments of
farmland only to achieve assessments as required by Sections
10-110 through 10-130.
(Source: P.A. 92-301, eff. 1-1-02.)
(35 ILCS 200/10-145)
Sec. 10-145. Farm dwellings. Each farm dwelling and
appurtenant structures and the tract upon which they are
immediately situated shall be assessed by the local assessing
officials at 33 1/3% of fair cash value except that in counties
that classify property for purposes of taxation in accordance
with Section 4 of Article IX of the Constitution they shall be
assessed at the percentage of fair cash value as required by
county ordinance. That assessment shall be subject to
equalization by the Department under Sections 17-5 through
17-30 and local equalization as otherwise provided in this
Code.
(Source: P.A. 82-554; 88-455.)
(35 ILCS 200/10-150)
Sec. 10-150. Property under forestry management plan. In
counties with less than 3,000,000 inhabitants, any land being
managed under a forestry management plan accepted by the
Department of Natural Resources under the Illinois Forestry

SB3019 Enrolled - 1548 - LRB104 20255 HLH 33706 b
Development Act shall be considered as "other farmland" and
shall be valued at 1/6 of its productivity index equalized
assessed value as cropland. In counties with more than
3,000,000 inhabitants, any land totaling totalling 15 acres or
less for which an approved forestry management plan was in
effect on or before December 31, 1985, shall be considered
"other farmland". The Department of Natural Resources shall
inform the Department and each chief county assessment officer
of each parcel of land covered by an approved forestry
management plan, and the Department shall notify each chief
county assessment officer of each parcel of land covered by an
approved forestry management plan.
(Source: P.A. 88-455; 89-445, eff. 2-7-96.)
(35 ILCS 200/10-152)
(Section scheduled to be repealed on December 31, 2026)
Sec. 10-152. Vegetative filter strip assessment.
(a) In counties with less than 3,000,000 inhabitants, any
land (i) that is located between a farm field and an area to be
protected, including but not limited to surface water, a
stream, a river, or a sinkhole and (ii) that meets the
requirements of subsection (b) of this Section shall be
considered a "vegetative filter strip" and valued at 1/6th of
its productivity index equalized assessed value as cropland.
In counties with 3,000,000 or more inhabitants, the land shall
be valued at the lesser of either (i) 16% of the fair cash

SB3019 Enrolled - 1549 - LRB104 20255 HLH 33706 b
value of the farmland estimated at the price it would bring at
a fair, voluntary sale for use by the buyer as a farm as
defined in Section 1-60 or (ii) 90% of the 1983 average
equalized assessed value per acre certified by the Department
of Revenue.
(b) Vegetative filter strips shall meet the standards and
specifications set forth in the Natural Resources Conservation
Service Technical Guide and shall contain vegetation that (i)
has a dense top growth; (ii) forms a uniform ground cover;
(iii) has a heavy fibrous root system; and (iv) tolerates
pesticides used in the farm field.
(c) The county's soil and water conservation district
shall assist the taxpayer in completing a uniform certified
document as prescribed by the Department of Revenue in
cooperation with the Association of Illinois Soil and Water
Conservation Districts that certifies (i) that the property
meets the requirements established under this Section for
vegetative filter strips and (ii) the acreage or square
footage of property that qualifies for assessment as a
vegetative filter strip. The document shall be filed by the
applicant with the Chief County Assessment Officer. The Chief
County Assessment Officer shall promulgate rules concerning
the filing of the document. The soil and water conservation
district shall create a conservation plan for the creation of
the filter strip. The plan shall be kept on file in the soil
and water conservation district office. Nothing in this

SB3019 Enrolled - 1550 - LRB104 20255 HLH 33706 b
Section shall be construed to require any taxpayer to have
vegetative filter strips.
(d) A joint report by the Department of Agriculture and
the Department of Natural Resources concerning the effect and
impact of vegetative filter strip assessment shall be
submitted to the General Assembly by March 1, 2006.
(e) This Section is repealed on December 31, 2031 December
31, 2026.
(Source: P.A. 99-560, eff. 1-1-17; 99-916, eff. 12-30-16.)
ARTICLE 825
Section 825-5. The Illinois Income Tax Act is amended by
changing Sections 201, 220, 221, 231, and 242 as follows:
(35 ILCS 5/201)
Sec. 201. Tax imposed.
(a) In general. A tax measured by net income is hereby
imposed on every individual, corporation, trust and estate for
each taxable year ending after July 31, 1969 on the privilege
of earning or receiving income in or as a resident of this
State. Such tax shall be in addition to all other occupation or
privilege taxes imposed by this State or by any municipal
corporation or political subdivision thereof.
(b) Rates. The tax imposed by subsection (a) of this
Section shall be determined as follows, except as adjusted by

SB3019 Enrolled - 1551 - LRB104 20255 HLH 33706 b
subsection (d-1):
(1) In the case of an individual, trust or estate, for
taxable years ending prior to July 1, 1989, an amount
equal to 2 1/2% of the taxpayer's net income for the
taxable year.
(2) In the case of an individual, trust or estate, for
taxable years beginning prior to July 1, 1989 and ending
after June 30, 1989, an amount equal to the sum of (i) 2
1/2% of the taxpayer's net income for the period prior to
July 1, 1989, as calculated under Section 202.3, and (ii)
3% of the taxpayer's net income for the period after June
30, 1989, as calculated under Section 202.3.
(3) In the case of an individual, trust or estate, for
taxable years beginning after June 30, 1989, and ending
prior to January 1, 2011, an amount equal to 3% of the
taxpayer's net income for the taxable year.
(4) In the case of an individual, trust, or estate,
for taxable years beginning prior to January 1, 2011, and
ending after December 31, 2010, an amount equal to the sum
of (i) 3% of the taxpayer's net income for the period prior
to January 1, 2011, as calculated under Section 202.5, and
(ii) 5% of the taxpayer's net income for the period after
December 31, 2010, as calculated under Section 202.5.
(5) In the case of an individual, trust, or estate,
for taxable years beginning on or after January 1, 2011,
and ending prior to January 1, 2015, an amount equal to 5%

SB3019 Enrolled - 1552 - LRB104 20255 HLH 33706 b
of the taxpayer's net income for the taxable year.
(5.1) In the case of an individual, trust, or estate,
for taxable years beginning prior to January 1, 2015, and
ending after December 31, 2014, an amount equal to the sum
of (i) 5% of the taxpayer's net income for the period prior
to January 1, 2015, as calculated under Section 202.5, and
(ii) 3.75% of the taxpayer's net income for the period
after December 31, 2014, as calculated under Section
202.5.
(5.2) In the case of an individual, trust, or estate,
for taxable years beginning on or after January 1, 2015,
and ending prior to July 1, 2017, an amount equal to 3.75%
of the taxpayer's net income for the taxable year.
(5.3) In the case of an individual, trust, or estate,
for taxable years beginning prior to July 1, 2017, and
ending after June 30, 2017, an amount equal to the sum of
(i) 3.75% of the taxpayer's net income for the period
prior to July 1, 2017, as calculated under Section 202.5,
and (ii) 4.95% of the taxpayer's net income for the period
after June 30, 2017, as calculated under Section 202.5.
(5.4) In the case of an individual, trust, or estate,
for taxable years beginning on or after July 1, 2017, an
amount equal to 4.95% of the taxpayer's net income for the
taxable year.
(6) In the case of a corporation, for taxable years
ending prior to July 1, 1989, an amount equal to 4% of the

SB3019 Enrolled - 1553 - LRB104 20255 HLH 33706 b
taxpayer's net income for the taxable year.
(7) In the case of a corporation, for taxable years
beginning prior to July 1, 1989 and ending after June 30,
1989, an amount equal to the sum of (i) 4% of the
taxpayer's net income for the period prior to July 1,
1989, as calculated under Section 202.3, and (ii) 4.8% of
the taxpayer's net income for the period after June 30,
1989, as calculated under Section 202.3.
(8) In the case of a corporation, for taxable years
beginning after June 30, 1989, and ending prior to January
1, 2011, an amount equal to 4.8% of the taxpayer's net
income for the taxable year.
(9) In the case of a corporation, for taxable years
beginning prior to January 1, 2011, and ending after
December 31, 2010, an amount equal to the sum of (i) 4.8%
of the taxpayer's net income for the period prior to
January 1, 2011, as calculated under Section 202.5, and
(ii) 7% of the taxpayer's net income for the period after
December 31, 2010, as calculated under Section 202.5.
(10) In the case of a corporation, for taxable years
beginning on or after January 1, 2011, and ending prior to
January 1, 2015, an amount equal to 7% of the taxpayer's
net income for the taxable year.
(11) In the case of a corporation, for taxable years
beginning prior to January 1, 2015, and ending after
December 31, 2014, an amount equal to the sum of (i) 7% of

SB3019 Enrolled - 1554 - LRB104 20255 HLH 33706 b
the taxpayer's net income for the period prior to January
1, 2015, as calculated under Section 202.5, and (ii) 5.25%
of the taxpayer's net income for the period after December
31, 2014, as calculated under Section 202.5.
(12) In the case of a corporation, for taxable years
beginning on or after January 1, 2015, and ending prior to
July 1, 2017, an amount equal to 5.25% of the taxpayer's
net income for the taxable year.
(13) In the case of a corporation, for taxable years
beginning prior to July 1, 2017, and ending after June 30,
2017, an amount equal to the sum of (i) 5.25% of the
taxpayer's net income for the period prior to July 1,
2017, as calculated under Section 202.5, and (ii) 7% of
the taxpayer's net income for the period after June 30,
2017, as calculated under Section 202.5.
(14) In the case of a corporation, for taxable years
beginning on or after July 1, 2017, an amount equal to 7%
of the taxpayer's net income for the taxable year.
The rates under this subsection (b) are subject to the
provisions of Section 201.5.
(b-5) Surcharge; sale or exchange of assets, properties,
and intangibles of organization gaming licensees. For each of
taxable years 2019 through 2027, a surcharge is imposed on all
taxpayers on income arising from the sale or exchange of
capital assets, depreciable business property, real property
used in the trade or business, and Section 197 intangibles (i)

SB3019 Enrolled - 1555 - LRB104 20255 HLH 33706 b
of an organization licensee under the Illinois Horse Racing
Act of 1975 and (ii) of an organization gaming licensee under
the Illinois Gambling Act. The amount of the surcharge is
equal to the amount of federal income tax liability for the
taxable year attributable to those sales and exchanges. The
surcharge imposed shall not apply if:
(1) the organization gaming license, organization
license, or racetrack property is transferred as a result
of any of the following:
(A) bankruptcy, a receivership, or a debt
adjustment initiated by or against the initial
licensee or the substantial owners of the initial
licensee;
(B) cancellation, revocation, or termination of
any such license by the Illinois Gaming Board or the
Illinois Racing Board;
(C) a determination by the Illinois Gaming Board
that transfer of the license is in the best interests
of Illinois gaming;
(D) the death of an owner of the equity interest in
a licensee;
(E) the acquisition of a controlling interest in
the stock or substantially all of the assets of a
publicly traded company;
(F) a transfer by a parent company to a wholly
owned subsidiary; or

SB3019 Enrolled - 1556 - LRB104 20255 HLH 33706 b
(G) the transfer or sale to or by one person to
another person where both persons were initial owners
of the license when the license was issued; or
(2) the controlling interest in the organization
gaming license, organization license, or racetrack
property is transferred in a transaction to lineal
descendants in which no gain or loss is recognized or as a
result of a transaction in accordance with Section 351 of
the Internal Revenue Code in which no gain or loss is
recognized; or
(3) live horse racing was not conducted in 2010 at a
racetrack located within 3 miles of the Mississippi River
under a license issued pursuant to the Illinois Horse
Racing Act of 1975.
The transfer of an organization gaming license,
organization license, or racetrack property by a person other
than the initial licensee to receive the organization gaming
license is not subject to a surcharge. The Department shall
adopt rules necessary to implement and administer this
subsection.
(c) Personal Property Tax Replacement Income Tax.
Beginning on July 1, 1979 and thereafter, in addition to such
income tax, there is also hereby imposed the Personal Property
Tax Replacement Income Tax measured by net income on every
corporation (including Subchapter S corporations), partnership
and trust, for each taxable year ending after June 30, 1979.

SB3019 Enrolled - 1557 - LRB104 20255 HLH 33706 b
Such taxes are imposed on the privilege of earning or
receiving income in or as a resident of this State. The
Personal Property Tax Replacement Income Tax shall be in
addition to the income tax imposed by subsections (a) and (b)
of this Section and in addition to all other occupation or
privilege taxes imposed by this State or by any municipal
corporation or political subdivision thereof.
(d) Additional Personal Property Tax Replacement Income
Tax Rates. The personal property tax replacement income tax
imposed by this subsection and subsection (c) of this Section
in the case of a corporation, other than a Subchapter S
corporation and except as adjusted by subsection (d-1), shall
be an additional amount equal to 2.85% of such taxpayer's net
income for the taxable year, except that beginning on January
1, 1981, and thereafter, the rate of 2.85% specified in this
subsection shall be reduced to 2.5%, and in the case of a
partnership, trust or a Subchapter S corporation shall be an
additional amount equal to 1.5% of such taxpayer's net income
for the taxable year.
(d-1) Rate reduction for certain foreign insurers. In the
case of a foreign insurer, as defined by Section 35A-5 of the
Illinois Insurance Code, whose state or country of domicile
imposes on insurers domiciled in Illinois a retaliatory tax
(excluding any insurer whose premiums from reinsurance assumed
are 50% or more of its total insurance premiums as determined
under paragraph (2) of subsection (b) of Section 304, except

SB3019 Enrolled - 1558 - LRB104 20255 HLH 33706 b
that for purposes of this determination premiums from
reinsurance do not include premiums from inter-affiliate
reinsurance arrangements), beginning with taxable years ending
on or after December 31, 1999, the sum of the rates of tax
imposed by subsections (b) and (d) shall be reduced (but not
increased) to the rate at which the total amount of tax imposed
under this Act, net of all credits allowed under this Act,
shall equal (i) the total amount of tax that would be imposed
on the foreign insurer's net income allocable to Illinois for
the taxable year by such foreign insurer's state or country of
domicile if that net income were subject to all income taxes
and taxes measured by net income imposed by such foreign
insurer's state or country of domicile, net of all credits
allowed or (ii) a rate of zero if no such tax is imposed on
such income by the foreign insurer's state of domicile. For
the purposes of this subsection (d-1), an inter-affiliate
includes a mutual insurer under common management.
(1) For the purposes of subsection (d-1), in no event
shall the sum of the rates of tax imposed by subsections
(b) and (d) be reduced below the rate at which the sum of:
(A) the total amount of tax imposed on such
foreign insurer under this Act for a taxable year, net
of all credits allowed under this Act, plus
(B) the privilege tax imposed by Section 409 of
the Illinois Insurance Code, the fire insurance
company tax imposed by Section 12 of the Fire

SB3019 Enrolled - 1559 - LRB104 20255 HLH 33706 b
Investigation Act, and the fire department taxes
imposed under Section 11-10-1 of the Illinois
Municipal Code,
equals 1.25% for taxable years ending prior to December
31, 2003, or 1.75% for taxable years ending on or after
December 31, 2003, of the net taxable premiums written for
the taxable year, as described by subsection (1) of
Section 409 of the Illinois Insurance Code. This paragraph
will in no event increase the rates imposed under
subsections (b) and (d).
(2) Any reduction in the rates of tax imposed by this
subsection shall be applied first against the rates
imposed by subsection (b) and only after the tax imposed
by subsection (a) net of all credits allowed under this
Section other than the credit allowed under subsection (i)
has been reduced to zero, against the rates imposed by
subsection (d).
This subsection (d-1) is exempt from the provisions of
Section 250.
(e) Investment credit. A taxpayer shall be allowed a
credit against the Personal Property Tax Replacement Income
Tax for investment in qualified property.
(1) A taxpayer shall be allowed a credit equal to .5%
of the basis of qualified property placed in service
during the taxable year, provided such property is placed
in service on or after July 1, 1984. There shall be allowed

SB3019 Enrolled - 1560 - LRB104 20255 HLH 33706 b
an additional credit equal to .5% of the basis of
qualified property placed in service during the taxable
year, provided such property is placed in service on or
after July 1, 1986, and the taxpayer's base employment
within Illinois has increased by 1% or more over the
preceding year as determined by the taxpayer's employment
records filed with the Illinois Department of Employment
Security. Taxpayers who are new to Illinois shall be
deemed to have met the 1% growth in base employment for the
first year in which they file employment records with the
Illinois Department of Employment Security. The provisions
added to this Section by Public Act 85-1200 (and restored
by Public Act 87-895) shall be construed as declaratory of
existing law and not as a new enactment. If, in any year,
the increase in base employment within Illinois over the
preceding year is less than 1%, the additional credit
shall be limited to that percentage times a fraction, the
numerator of which is .5% and the denominator of which is
1%, but shall not exceed .5%. The investment credit shall
not be allowed to the extent that it would reduce a
taxpayer's liability in any tax year below zero, nor may
any credit for qualified property be allowed for any year
other than the year in which the property was placed in
service in Illinois. For tax years ending on or after
December 31, 1987, and on or before December 31, 1988, the
credit shall be allowed for the tax year in which the

SB3019 Enrolled - 1561 - LRB104 20255 HLH 33706 b
property is placed in service, or, if the amount of the
credit exceeds the tax liability for that year, whether it
exceeds the original liability or the liability as later
amended, such excess may be carried forward and applied to
the tax liability of the 5 taxable years following the
excess credit years if the taxpayer (i) makes investments
which cause the creation of a minimum of 2,000 full-time
equivalent jobs in Illinois, (ii) is located in an
enterprise zone established pursuant to the Illinois
Enterprise Zone Act and (iii) is certified by the
Department of Commerce and Community Affairs (now
Department of Commerce and Economic Opportunity) as
complying with the requirements specified in clause (i)
and (ii) by July 1, 1986. The Department of Commerce and
Community Affairs (now Department of Commerce and Economic
Opportunity) shall notify the Department of Revenue of all
such certifications immediately. For tax years ending
after December 31, 1988, the credit shall be allowed for
the tax year in which the property is placed in service,
or, if the amount of the credit exceeds the tax liability
for that year, whether it exceeds the original liability
or the liability as later amended, such excess may be
carried forward and applied to the tax liability of the 5
taxable years following the excess credit years. The
credit shall be applied to the earliest year for which
there is a liability. If there is credit from more than one

SB3019 Enrolled - 1562 - LRB104 20255 HLH 33706 b
tax year that is available to offset a liability, earlier
credit shall be applied first.
(2) The term "qualified property" means property
which:
(A) is tangible, whether new or used, including
buildings and structural components of buildings and
signs that are real property, but not including land
or improvements to real property that are not a
structural component of a building such as
landscaping, sewer lines, local access roads, fencing,
parking lots, and other appurtenances;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(e);
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code;
(D) is used in Illinois by a taxpayer who is
primarily engaged in manufacturing, or in mining coal
or fluorite, or in retailing, or was placed in service
on or after July 1, 2006 in a River Edge Redevelopment
Zone established pursuant to the River Edge
Redevelopment Zone Act; and
(E) has not previously been used in Illinois in
such a manner and by such a person as would qualify for

SB3019 Enrolled - 1563 - LRB104 20255 HLH 33706 b
the credit provided by this subsection (e) or
subsection (f).
(3) For purposes of this subsection (e),
"manufacturing" means the material staging and production
of tangible personal property by procedures commonly
regarded as manufacturing, processing, fabrication, or
assembling which changes some existing material into new
shapes, new qualities, or new combinations. For purposes
of this subsection (e) the term "mining" shall have the
same meaning as the term "mining" in Section 613(c) of the
Internal Revenue Code. For purposes of this subsection
(e), the term "retailing" means the sale of tangible
personal property for use or consumption and not for
resale, or services rendered in conjunction with the sale
of tangible personal property for use or consumption and
not for resale. For purposes of this subsection (e),
"tangible personal property" has the same meaning as when
that term is used in the Retailers' Occupation Tax Act,
and, for taxable years ending after December 31, 2008,
does not include the generation, transmission, or
distribution of electricity.
(4) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.
(5) If the basis of the property for federal income
tax depreciation purposes is increased after it has been

SB3019 Enrolled - 1564 - LRB104 20255 HLH 33706 b
placed in service in Illinois by the taxpayer, the amount
of such increase shall be deemed property placed in
service on the date of such increase in basis.
(6) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
(7) If during any taxable year, any property ceases to
be qualified property in the hands of the taxpayer within
48 months after being placed in service, or the situs of
any qualified property is moved outside Illinois within 48
months after being placed in service, the Personal
Property Tax Replacement Income Tax for such taxable year
shall be increased. Such increase shall be determined by
(i) recomputing the investment credit which would have
been allowed for the year in which credit for such
property was originally allowed by eliminating such
property from such computation and, (ii) subtracting such
recomputed credit from the amount of credit previously
allowed. For the purposes of this paragraph (7), a
reduction of the basis of qualified property resulting
from a redetermination of the purchase price shall be
deemed a disposition of qualified property to the extent
of such reduction.
(8) Unless the investment credit is extended by law,
the basis of qualified property shall not include costs
incurred after December 31, 2018, except for costs
incurred pursuant to a binding contract entered into on or

SB3019 Enrolled - 1565 - LRB104 20255 HLH 33706 b
before December 31, 2018.
(9) Each taxable year ending before December 31, 2000,
a partnership may elect to pass through to its partners
the credits to which the partnership is entitled under
this subsection (e) for the taxable year. A partner may
use the credit allocated to him or her under this
paragraph only against the tax imposed in subsections (c)
and (d) of this Section. If the partnership makes that
election, those credits shall be allocated among the
partners in the partnership in accordance with the rules
set forth in Section 704(b) of the Internal Revenue Code,
and the rules promulgated under that Section, and the
allocated amount of the credits shall be allowed to the
partners for that taxable year. The partnership shall make
this election on its Personal Property Tax Replacement
Income Tax return for that taxable year. The election to
pass through the credits shall be irrevocable.
For taxable years ending on or after December 31,
2000, a partner that qualifies its partnership for a
subtraction under subparagraph (I) of paragraph (2) of
subsection (d) of Section 203 or a shareholder that
qualifies a Subchapter S corporation for a subtraction
under subparagraph (S) of paragraph (2) of subsection (b)
of Section 203 shall be allowed a credit under this
subsection (e) equal to its share of the credit earned
under this subsection (e) during the taxable year by the

SB3019 Enrolled - 1566 - LRB104 20255 HLH 33706 b
partnership or Subchapter S corporation, determined in
accordance with the determination of income and
distributive share of income under Sections 702 and 704
and Subchapter S of the Internal Revenue Code. This
paragraph is exempt from the provisions of Section 250.
(f) Investment credit; Enterprise Zone; River Edge
Redevelopment Zone.
(1) A taxpayer shall be allowed a credit against the
tax imposed by subsections (a) and (b) of this Section for
investment in qualified property which is placed in
service in an Enterprise Zone created pursuant to the
Illinois Enterprise Zone Act or, for property placed in
service on or after July 1, 2006, a River Edge
Redevelopment Zone established pursuant to the River Edge
Redevelopment Zone Act. For partners, shareholders of
Subchapter S corporations, and owners of limited liability
companies, if the liability company is treated as a
partnership for purposes of federal and State income
taxation, for taxable years ending before December 31,
2023, there shall be allowed a credit under this
subsection (f) to be determined in accordance with the
determination of income and distributive share of income
under Sections 702 and 704 and Subchapter S of the
Internal Revenue Code. For taxable years ending on or
after December 31, 2023, for partners and shareholders of
Subchapter S corporations, the provisions of Section 251

SB3019 Enrolled - 1567 - LRB104 20255 HLH 33706 b
shall apply with respect to the credit under this
subsection. The credit shall be .5% of the basis for such
property. The credit shall be available only in the
taxable year in which the property is placed in service in
the Enterprise Zone or River Edge Redevelopment Zone and
shall not be allowed to the extent that it would reduce a
taxpayer's liability for the tax imposed by subsections
(a) and (b) of this Section to below zero. For tax years
ending on or after December 31, 1985, the credit shall be
allowed for the tax year in which the property is placed in
service, or, if the amount of the credit exceeds the tax
liability for that year, whether it exceeds the original
liability or the liability as later amended, such excess
may be carried forward and applied to the tax liability of
the 5 taxable years following the excess credit year. The
credit shall be applied to the earliest year for which
there is a liability. If there is credit from more than one
tax year that is available to offset a liability, the
credit accruing first in time shall be applied first.
(2) The term qualified property means property which:
(A) is tangible, whether new or used, including
buildings and structural components of buildings;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection

SB3019 Enrolled - 1568 - LRB104 20255 HLH 33706 b
(f);
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code;
(D) is used in the Enterprise Zone or River Edge
Redevelopment Zone by the taxpayer; and
(E) has not been previously used in Illinois in
such a manner and by such a person as would qualify for
the credit provided by this subsection (f) or
subsection (e).
(3) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.
(4) If the basis of the property for federal income
tax depreciation purposes is increased after it has been
placed in service in the Enterprise Zone or River Edge
Redevelopment Zone by the taxpayer, the amount of such
increase shall be deemed property placed in service on the
date of such increase in basis.
(5) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
(6) If during any taxable year, any property ceases to
be qualified property in the hands of the taxpayer within
48 months after being placed in service, or the situs of
any qualified property is moved outside the Enterprise
Zone or River Edge Redevelopment Zone within 48 months
after being placed in service, the tax imposed under

SB3019 Enrolled - 1569 - LRB104 20255 HLH 33706 b
subsections (a) and (b) of this Section for such taxable
year shall be increased. Such increase shall be determined
by (i) recomputing the investment credit which would have
been allowed for the year in which credit for such
property was originally allowed by eliminating such
property from such computation, and (ii) subtracting such
recomputed credit from the amount of credit previously
allowed. For the purposes of this paragraph (6), a
reduction of the basis of qualified property resulting
from a redetermination of the purchase price shall be
deemed a disposition of qualified property to the extent
of such reduction.
(7) There shall be allowed an additional credit equal
to 0.5% of the basis of qualified property placed in
service during the taxable year in a River Edge
Redevelopment Zone, provided such property is placed in
service on or after July 1, 2006, and the taxpayer's base
employment within Illinois has increased by 1% or more
over the preceding year as determined by the taxpayer's
employment records filed with the Illinois Department of
Employment Security. Taxpayers who are new to Illinois
shall be deemed to have met the 1% growth in base
employment for the first year in which they file
employment records with the Illinois Department of
Employment Security. If, in any year, the increase in base
employment within Illinois over the preceding year is less

SB3019 Enrolled - 1570 - LRB104 20255 HLH 33706 b
than 1%, the additional credit shall be limited to that
percentage times a fraction, the numerator of which is
0.5% and the denominator of which is 1%, but shall not
exceed 0.5%.
(8) For taxable years beginning on or after January 1,
2021, there shall be allowed an Enterprise Zone
construction jobs credit against the taxes imposed under
subsections (a) and (b) of this Section as provided in
Section 13 of the Illinois Enterprise Zone Act.
The credit or credits may not reduce the taxpayer's
liability to less than zero. If the amount of the credit or
credits exceeds the taxpayer's liability, the excess may
be carried forward and applied against the taxpayer's
liability in succeeding calendar years in the same manner
provided under paragraph (4) of Section 211 of this Act.
The credit or credits shall be applied to the earliest
year for which there is a tax liability. If there are
credits from more than one taxable year that are available
to offset a liability, the earlier credit shall be applied
first.
For partners, shareholders of Subchapter S
corporations, and owners of limited liability companies,
if the liability company is treated as a partnership for
the purposes of federal and State income taxation, for
taxable years ending before December 31, 2023, there shall
be allowed a credit under this Section to be determined in

SB3019 Enrolled - 1571 - LRB104 20255 HLH 33706 b
accordance with the determination of income and
distributive share of income under Sections 702 and 704
and Subchapter S of the Internal Revenue Code. For taxable
years ending on or after December 31, 2023, for partners
and shareholders of Subchapter S corporations, the
provisions of Section 251 shall apply with respect to the
credit under this subsection.
The total aggregate amount of credits awarded under
the Blue Collar Jobs Act (Article 20 of Public Act 101-9)
shall not exceed $20,000,000 in any State fiscal year.
This paragraph (8) is exempt from the provisions of
Section 250.
(g) (Blank).
(h) Investment credit; High Impact Business.
(1) Subject to subsections (b) and (b-5) of Section
5.5 of the Illinois Enterprise Zone Act, a taxpayer shall
be allowed a credit against the tax imposed by subsections
(a) and (b) of this Section for investment in qualified
property which is placed in service by a Department of
Commerce and Economic Opportunity designated High Impact
Business. The credit shall be .5% of the basis for such
property. The credit shall not be available (i) until the
minimum investments in qualified property set forth in
subdivision (a)(3)(A) of Section 5.5 of the Illinois
Enterprise Zone Act have been satisfied or (ii) until the
time authorized in subsection (b-5) of the Illinois

SB3019 Enrolled - 1572 - LRB104 20255 HLH 33706 b
Enterprise Zone Act for entities designated as High Impact
Businesses under subdivisions (a)(3)(B), (a)(3)(C), and
(a)(3)(D) of Section 5.5 of the Illinois Enterprise Zone
Act, and shall not be allowed to the extent that it would
reduce a taxpayer's liability for the tax imposed by
subsections (a) and (b) of this Section to below zero. The
credit applicable to such investments shall be taken in
the taxable year in which such investments have been
completed. The credit for additional investments beyond
the minimum investment by a designated high impact
business authorized under subdivision (a)(3)(A) of Section
5.5 of the Illinois Enterprise Zone Act shall be available
only in the taxable year in which the property is placed in
service and shall not be allowed to the extent that it
would reduce a taxpayer's liability for the tax imposed by
subsections (a) and (b) of this Section to below zero. For
tax years ending on or after December 31, 1987, the credit
shall be allowed for the tax year in which the property is
placed in service, or, if the amount of the credit exceeds
the tax liability for that year, whether it exceeds the
original liability or the liability as later amended, such
excess may be carried forward and applied to the tax
liability of the 5 taxable years following the excess
credit year. The credit shall be applied to the earliest
year for which there is a liability. If there is credit
from more than one tax year that is available to offset a

SB3019 Enrolled - 1573 - LRB104 20255 HLH 33706 b
liability, the credit accruing first in time shall be
applied first.
Changes made in this subdivision (h)(1) by Public Act
88-670 restore changes made by Public Act 85-1182 and
reflect existing law.
(2) The term qualified property means property which:
(A) is tangible, whether new or used, including
buildings and structural components of buildings;
(B) is depreciable pursuant to Section 167 of the
Internal Revenue Code, except that "3-year property"
as defined in Section 168(c)(2)(A) of that Code is not
eligible for the credit provided by this subsection
(h);
(C) is acquired by purchase as defined in Section
179(d) of the Internal Revenue Code; and
(D) is not eligible for the Enterprise Zone
Investment Credit provided by subsection (f) of this
Section.
(3) The basis of qualified property shall be the basis
used to compute the depreciation deduction for federal
income tax purposes.
(4) If the basis of the property for federal income
tax depreciation purposes is increased after it has been
placed in service in a federally designated Foreign Trade
Zone or Sub-Zone located in Illinois by the taxpayer, the
amount of such increase shall be deemed property placed in

SB3019 Enrolled - 1574 - LRB104 20255 HLH 33706 b
service on the date of such increase in basis.
(5) The term "placed in service" shall have the same
meaning as under Section 46 of the Internal Revenue Code.
(6) If during any taxable year ending on or before
December 31, 1996, any property ceases to be qualified
property in the hands of the taxpayer within 48 months
after being placed in service, or the situs of any
qualified property is moved outside Illinois within 48
months after being placed in service, the tax imposed
under subsections (a) and (b) of this Section for such
taxable year shall be increased. Such increase shall be
determined by (i) recomputing the investment credit which
would have been allowed for the year in which credit for
such property was originally allowed by eliminating such
property from such computation, and (ii) subtracting such
recomputed credit from the amount of credit previously
allowed. For the purposes of this paragraph (6), a
reduction of the basis of qualified property resulting
from a redetermination of the purchase price shall be
deemed a disposition of qualified property to the extent
of such reduction.
(7) Beginning with tax years ending after December 31,
1996, if a taxpayer qualifies for the credit under this
subsection (h) and thereby is granted a tax abatement and
the taxpayer relocates its entire facility in violation of
the explicit terms and length of the contract under

SB3019 Enrolled - 1575 - LRB104 20255 HLH 33706 b
Section 18-183 of the Property Tax Code, the tax imposed
under subsections (a) and (b) of this Section shall be
increased for the taxable year in which the taxpayer
relocated its facility by an amount equal to the amount of
credit received by the taxpayer under this subsection (h).
(h-5) High Impact Business construction jobs credit. For
taxable years beginning on or after January 1, 2021, there
shall also be allowed a High Impact Business construction jobs
credit against the tax imposed under subsections (a) and (b)
of this Section as provided in subsections (i) and (j) of
Section 5.5 of the Illinois Enterprise Zone Act.
The credit or credits may not reduce the taxpayer's
liability to less than zero. If the amount of the credit or
credits exceeds the taxpayer's liability, the excess may be
carried forward and applied against the taxpayer's liability
in succeeding calendar years in the manner provided under
paragraph (4) of Section 211 of this Act. The credit or credits
shall be applied to the earliest year for which there is a tax
liability. If there are credits from more than one taxable
year that are available to offset a liability, the earlier
credit shall be applied first.
For partners, shareholders of Subchapter S corporations,
and owners of limited liability companies, for taxable years
ending before December 31, 2023, if the liability company is
treated as a partnership for the purposes of federal and State
income taxation, there shall be allowed a credit under this

SB3019 Enrolled - 1576 - LRB104 20255 HLH 33706 b
Section to be determined in accordance with the determination
of income and distributive share of income under Sections 702
and 704 and Subchapter S of the Internal Revenue Code. For
taxable years ending on or after December 31, 2023, for
partners and shareholders of Subchapter S corporations, the
provisions of Section 251 shall apply with respect to the
credit under this subsection.
The total aggregate amount of credits awarded under the
Blue Collar Jobs Act (Article 20 of Public Act 101-9) shall not
exceed $20,000,000 in any State fiscal year.
This subsection (h-5) is exempt from the provisions of
Section 250.
(i) Credit for Personal Property Tax Replacement Income
Tax. For tax years ending prior to December 31, 2003, a credit
shall be allowed against the tax imposed by subsections (a)
and (b) of this Section for the tax imposed by subsections (c)
and (d) of this Section. This credit shall be computed by
multiplying the tax imposed by subsections (c) and (d) of this
Section by a fraction, the numerator of which is base income
allocable to Illinois and the denominator of which is Illinois
base income, and further multiplying the product by the tax
rate imposed by subsections (a) and (b) of this Section.
Any credit earned on or after December 31, 1986 under this
subsection which is unused in the year the credit is computed
because it exceeds the tax liability imposed by subsections
(a) and (b) for that year (whether it exceeds the original

SB3019 Enrolled - 1577 - LRB104 20255 HLH 33706 b
liability or the liability as later amended) may be carried
forward and applied to the tax liability imposed by
subsections (a) and (b) of the 5 taxable years following the
excess credit year, provided that no credit may be carried
forward to any year ending on or after December 31, 2003. This
credit shall be applied first to the earliest year for which
there is a liability. If there is a credit under this
subsection from more than one tax year that is available to
offset a liability the earliest credit arising under this
subsection shall be applied first.
If, during any taxable year ending on or after December
31, 1986, the tax imposed by subsections (c) and (d) of this
Section for which a taxpayer has claimed a credit under this
subsection (i) is reduced, the amount of credit for such tax
shall also be reduced. Such reduction shall be determined by
recomputing the credit to take into account the reduced tax
imposed by subsections (c) and (d). If any portion of the
reduced amount of credit has been carried to a different
taxable year, an amended return shall be filed for such
taxable year to reduce the amount of credit claimed.
(j) Training expense credit. Beginning with tax years
ending on or after December 31, 1986 and prior to December 31,
2003, a taxpayer shall be allowed a credit against the tax
imposed by subsections (a) and (b) under this Section for all
amounts paid or accrued, on behalf of all persons employed by
the taxpayer in Illinois or Illinois residents employed

SB3019 Enrolled - 1578 - LRB104 20255 HLH 33706 b
outside of Illinois by a taxpayer, for educational or
vocational training in semi-technical or technical fields or
semi-skilled or skilled fields, which were deducted from gross
income in the computation of taxable income. The credit
against the tax imposed by subsections (a) and (b) shall be
1.6% of such training expenses. For partners, shareholders of
subchapter S corporations, and owners of limited liability
companies, if the liability company is treated as a
partnership for purposes of federal and State income taxation,
for taxable years ending before December 31, 2023, there shall
be allowed a credit under this subsection (j) to be determined
in accordance with the determination of income and
distributive share of income under Sections 702 and 704 and
subchapter S of the Internal Revenue Code. For taxable years
ending on or after December 31, 2023, for partners and
shareholders of Subchapter S corporations, the provisions of
Section 251 shall apply with respect to the credit under this
subsection.
Any credit allowed under this subsection which is unused
in the year the credit is earned may be carried forward to each
of the 5 taxable years following the year for which the credit
is first computed until it is used. This credit shall be
applied first to the earliest year for which there is a
liability. If there is a credit under this subsection from
more than one tax year that is available to offset a liability,
the earliest credit arising under this subsection shall be

SB3019 Enrolled - 1579 - LRB104 20255 HLH 33706 b
applied first. No carryforward credit may be claimed in any
tax year ending on or after December 31, 2003.
(k) Research and development credit. For tax years ending
after July 1, 1990 and prior to December 31, 2003, and
beginning again for tax years ending on or after December 31,
2004, and ending prior to January 1, 2037 January 1, 2032, a
taxpayer shall be allowed a credit against the tax imposed by
subsections (a) and (b) of this Section for increasing
research activities in this State. The credit allowed against
the tax imposed by subsections (a) and (b) shall be equal to 6
1/2% of the qualifying expenditures for increasing research
activities in this State. For partners, shareholders of
subchapter S corporations, and owners of limited liability
companies, if the liability company is treated as a
partnership for purposes of federal and State income taxation,
for taxable years ending before December 31, 2023, there shall
be allowed a credit under this subsection to be determined in
accordance with the determination of income and distributive
share of income under Sections 702 and 704 and subchapter S of
the Internal Revenue Code. For taxable years ending on or
after December 31, 2023, for partners and shareholders of
Subchapter S corporations, the provisions of Section 251 shall
apply with respect to the credit under this subsection.
For purposes of this subsection, "qualifying expenditures"
means the qualifying expenditures as defined for the federal
credit for increasing research activities which would be

SB3019 Enrolled - 1580 - LRB104 20255 HLH 33706 b
allowable under Section 41 of the Internal Revenue Code and
which are conducted in this State, "qualifying expenditures
for increasing research activities in this State" means the
excess of qualifying expenditures for the taxable year in
which incurred over qualifying expenditures for the base
period, "qualifying expenditures for the base period" means
the average of the qualifying expenditures for each year in
the base period, and "base period" means the 3 taxable years
immediately preceding the taxable year for which the
determination is being made.
Any credit in excess of the tax liability for the taxable
year may be carried forward. A taxpayer may elect to have the
unused credit shown on its final completed return carried over
as a credit against the tax liability for the following 5
taxable years or until it has been fully used, whichever
occurs first; provided that no credit earned in a tax year
ending prior to December 31, 2003 may be carried forward to any
year ending on or after December 31, 2003.
If an unused credit is carried forward to a given year from
2 or more earlier years, that credit arising in the earliest
year will be applied first against the tax liability for the
given year. If a tax liability for the given year still
remains, the credit from the next earliest year will then be
applied, and so on, until all credits have been used or no tax
liability for the given year remains. Any remaining unused
credit or credits then will be carried forward to the next

SB3019 Enrolled - 1581 - LRB104 20255 HLH 33706 b
following year in which a tax liability is incurred, except
that no credit can be carried forward to a year which is more
than 5 years after the year in which the expense for which the
credit is given was incurred.
No inference shall be drawn from Public Act 91-644 in
construing this Section for taxable years beginning before
January 1, 1999.
It is the intent of the General Assembly that the research
and development credit under this subsection (k) shall apply
continuously for all tax years ending on or after December 31,
2004 and ending prior to January 1, 2037 January 1, 2032,
including, but not limited to, the period beginning on January
1, 2016 and ending on July 6, 2017 (the effective date of
Public Act 100-22). All actions taken in reliance on the
continuation of the credit under this subsection (k) by any
taxpayer are hereby validated.
(l) Environmental Remediation Tax Credit.
(i) For tax years ending after December 31, 1997 and
on or before December 31, 2001, a taxpayer shall be
allowed a credit against the tax imposed by subsections
(a) and (b) of this Section for certain amounts paid for
unreimbursed eligible remediation costs, as specified in
this subsection. For purposes of this Section,
"unreimbursed eligible remediation costs" means costs
approved by the Illinois Environmental Protection Agency
("Agency") under Section 58.14 of the Environmental

SB3019 Enrolled - 1582 - LRB104 20255 HLH 33706 b
Protection Act that were paid in performing environmental
remediation at a site for which a No Further Remediation
Letter was issued by the Agency and recorded under Section
58.10 of the Environmental Protection Act. The credit must
be claimed for the taxable year in which Agency approval
of the eligible remediation costs is granted. The credit
is not available to any taxpayer if the taxpayer or any
related party caused or contributed to, in any material
respect, a release of regulated substances on, in, or
under the site that was identified and addressed by the
remedial action pursuant to the Site Remediation Program
of the Environmental Protection Act. After the Pollution
Control Board rules are adopted pursuant to the Illinois
Administrative Procedure Act for the administration and
enforcement of Section 58.9 of the Environmental
Protection Act, determinations as to credit availability
for purposes of this Section shall be made consistent with
those rules. For purposes of this Section, "taxpayer"
includes a person whose tax attributes the taxpayer has
succeeded to under Section 381 of the Internal Revenue
Code and "related party" includes the persons disallowed a
deduction for losses by paragraphs (b), (c), and (f)(1) of
Section 267 of the Internal Revenue Code by virtue of
being a related taxpayer, as well as any of its partners.
The credit allowed against the tax imposed by subsections
(a) and (b) shall be equal to 25% of the unreimbursed

SB3019 Enrolled - 1583 - LRB104 20255 HLH 33706 b
eligible remediation costs in excess of $100,000 per site,
except that the $100,000 threshold shall not apply to any
site contained in an enterprise zone as determined by the
Department of Commerce and Community Affairs (now
Department of Commerce and Economic Opportunity). The
total credit allowed shall not exceed $40,000 per year
with a maximum total of $150,000 per site. For partners
and shareholders of subchapter S corporations, there shall
be allowed a credit under this subsection to be determined
in accordance with the determination of income and
distributive share of income under Sections 702 and 704
and subchapter S of the Internal Revenue Code.
(ii) A credit allowed under this subsection that is
unused in the year the credit is earned may be carried
forward to each of the 5 taxable years following the year
for which the credit is first earned until it is used. The
term "unused credit" does not include any amounts of
unreimbursed eligible remediation costs in excess of the
maximum credit per site authorized under paragraph (i).
This credit shall be applied first to the earliest year
for which there is a liability. If there is a credit under
this subsection from more than one tax year that is
available to offset a liability, the earliest credit
arising under this subsection shall be applied first. A
credit allowed under this subsection may be sold to a
buyer as part of a sale of all or part of the remediation

SB3019 Enrolled - 1584 - LRB104 20255 HLH 33706 b
site for which the credit was granted. The purchaser of a
remediation site and the tax credit shall succeed to the
unused credit and remaining carry-forward period of the
seller. To perfect the transfer, the assignor shall record
the transfer in the chain of title for the site and provide
written notice to the Director of the Illinois Department
of Revenue of the assignor's intent to sell the
remediation site and the amount of the tax credit to be
transferred as a portion of the sale. In no event may a
credit be transferred to any taxpayer if the taxpayer or a
related party would not be eligible under the provisions
of subsection (i).
(iii) For purposes of this Section, the term "site"
shall have the same meaning as under Section 58.2 of the
Environmental Protection Act.
(m) Education expense credit. Beginning with tax years
ending after December 31, 1999, a taxpayer who is the
custodian of one or more qualifying pupils shall be allowed a
credit against the tax imposed by subsections (a) and (b) of
this Section for qualified education expenses incurred on
behalf of the qualifying pupils. The credit shall be equal to
25% of qualified education expenses, but in no event may the
total credit under this subsection claimed by a family that is
the custodian of qualifying pupils exceed (i) $500 for tax
years ending prior to December 31, 2017, and (ii) $750 for tax
years ending on or after December 31, 2017. In no event shall a

SB3019 Enrolled - 1585 - LRB104 20255 HLH 33706 b
credit under this subsection reduce the taxpayer's liability
under this Act to less than zero. Notwithstanding any other
provision of law, for taxable years beginning on or after
January 1, 2017, no taxpayer may claim a credit under this
subsection (m) if the taxpayer's adjusted gross income for the
taxable year exceeds (i) $500,000, in the case of spouses
filing a joint federal tax return or (ii) $250,000, in the case
of all other taxpayers. This subsection is exempt from the
provisions of Section 250 of this Act.
For purposes of this subsection:
"Qualifying pupils" means individuals who (i) are
residents of the State of Illinois, (ii) are under the age of
21 at the close of the school year for which a credit is
sought, and (iii) during the school year for which a credit is
sought were full-time pupils enrolled in a kindergarten
through twelfth grade education program at any school, as
defined in this subsection.
"Qualified education expense" means the amount incurred on
behalf of a qualifying pupil in excess of $250 for tuition,
book fees, and lab fees at the school in which the pupil is
enrolled during the regular school year.
"School" means any public or nonpublic elementary or
secondary school in Illinois that is in compliance with Title
VI of the Civil Rights Act of 1964 and attendance at which
satisfies the requirements of Section 26-1 of the School Code,
except that nothing shall be construed to require a child to

SB3019 Enrolled - 1586 - LRB104 20255 HLH 33706 b
attend any particular public or nonpublic school to qualify
for the credit under this Section.
"Custodian" means, with respect to qualifying pupils, an
Illinois resident who is a parent, the parents, a legal
guardian, or the legal guardians of the qualifying pupils.
(n) River Edge Redevelopment Zone site remediation tax
credit.
(i) For tax years ending on or after December 31,
2006, a taxpayer shall be allowed a credit against the tax
imposed by subsections (a) and (b) of this Section for
certain amounts paid for unreimbursed eligible remediation
costs, as specified in this subsection. For purposes of
this Section, "unreimbursed eligible remediation costs"
means costs approved by the Illinois Environmental
Protection Agency ("Agency") under Section 58.14a of the
Environmental Protection Act that were paid in performing
environmental remediation at a site within a River Edge
Redevelopment Zone for which a No Further Remediation
Letter was issued by the Agency and recorded under Section
58.10 of the Environmental Protection Act. The credit must
be claimed for the taxable year in which Agency approval
of the eligible remediation costs is granted. The credit
is not available to any taxpayer if the taxpayer or any
related party caused or contributed to, in any material
respect, a release of regulated substances on, in, or
under the site that was identified and addressed by the

SB3019 Enrolled - 1587 - LRB104 20255 HLH 33706 b
remedial action pursuant to the Site Remediation Program
of the Environmental Protection Act. Determinations as to
credit availability for purposes of this Section shall be
made consistent with rules adopted by the Pollution
Control Board pursuant to the Illinois Administrative
Procedure Act for the administration and enforcement of
Section 58.9 of the Environmental Protection Act. For
purposes of this Section, "taxpayer" includes a person
whose tax attributes the taxpayer has succeeded to under
Section 381 of the Internal Revenue Code and "related
party" includes the persons disallowed a deduction for
losses by paragraphs (b), (c), and (f)(1) of Section 267
of the Internal Revenue Code by virtue of being a related
taxpayer, as well as any of its partners. The credit
allowed against the tax imposed by subsections (a) and (b)
shall be equal to 25% of the unreimbursed eligible
remediation costs in excess of $100,000 per site.
(ii) A credit allowed under this subsection that is
unused in the year the credit is earned may be carried
forward to each of the 5 taxable years following the year
for which the credit is first earned until it is used. This
credit shall be applied first to the earliest year for
which there is a liability. If there is a credit under this
subsection from more than one tax year that is available
to offset a liability, the earliest credit arising under
this subsection shall be applied first. A credit allowed

SB3019 Enrolled - 1588 - LRB104 20255 HLH 33706 b
under this subsection may be sold to a buyer as part of a
sale of all or part of the remediation site for which the
credit was granted. The purchaser of a remediation site
and the tax credit shall succeed to the unused credit and
remaining carry-forward period of the seller. To perfect
the transfer, the assignor shall record the transfer in
the chain of title for the site and provide written notice
to the Director of the Illinois Department of Revenue of
the assignor's intent to sell the remediation site and the
amount of the tax credit to be transferred as a portion of
the sale. In no event may a credit be transferred to any
taxpayer if the taxpayer or a related party would not be
eligible under the provisions of subsection (i).
(iii) For purposes of this Section, the term "site"
shall have the same meaning as under Section 58.2 of the
Environmental Protection Act.
(o) For each of the taxable years during the Compassionate
Use of Medical Cannabis Program, a surcharge is imposed on all
taxpayers on income arising from the sale or exchange of
capital assets, depreciable business property, real property
used in the trade or business, and Section 197 intangibles of
an organization registrant under the Compassionate Use of
Medical Cannabis Program Act. The amount of the surcharge is
equal to the amount of federal income tax liability for the
taxable year attributable to those sales and exchanges. The
surcharge imposed does not apply if:

SB3019 Enrolled - 1589 - LRB104 20255 HLH 33706 b
(1) the medical cannabis cultivation center
registration, medical cannabis dispensary registration, or
the property of a registration is transferred as a result
of any of the following:
(A) bankruptcy, a receivership, or a debt
adjustment initiated by or against the initial
registration or the substantial owners of the initial
registration;
(B) cancellation, revocation, or termination of
any registration by the Illinois Department of Public
Health;
(C) a determination by the Illinois Department of
Public Health that transfer of the registration is in
the best interests of Illinois qualifying patients as
defined by the Compassionate Use of Medical Cannabis
Program Act;
(D) the death of an owner of the equity interest in
a registrant;
(E) the acquisition of a controlling interest in
the stock or substantially all of the assets of a
publicly traded company;
(F) a transfer by a parent company to a wholly
owned subsidiary; or
(G) the transfer or sale to or by one person to
another person where both persons were initial owners
of the registration when the registration was issued;

SB3019 Enrolled - 1590 - LRB104 20255 HLH 33706 b
or
(2) the cannabis cultivation center registration,
medical cannabis dispensary registration, or the
controlling interest in a registrant's property is
transferred in a transaction to lineal descendants in
which no gain or loss is recognized or as a result of a
transaction in accordance with Section 351 of the Internal
Revenue Code in which no gain or loss is recognized.
(p) Pass-through entity tax.
(1) For taxable years ending on or after December 31,
2021, a partnership (other than a publicly traded
partnership under Section 7704 of the Internal Revenue
Code) or Subchapter S corporation may elect to apply the
provisions of this subsection. A separate election shall
be made for each taxable year. Such election shall be made
at such time, and in such form and manner as prescribed by
the Department, and, once made, is irrevocable.
(2) Entity-level tax. A partnership or Subchapter S
corporation electing to apply the provisions of this
subsection shall be subject to a tax for the privilege of
earning or receiving income in this State in an amount
equal to 4.95% of the taxpayer's net income for the
taxable year.
(3) Net income defined.
(A) In general. For purposes of paragraph (2), the
term net income has the same meaning as defined in

SB3019 Enrolled - 1591 - LRB104 20255 HLH 33706 b
Section 202 of this Act, except that, for tax years
ending on or after December 31, 2023, a deduction
shall be allowed in computing base income for
distributions to a retired partner to the extent that
the partner's distributions are exempt from tax under
Section 203(a)(2)(F) of this Act. In addition, the
following modifications shall not apply:
(i) the standard exemption allowed under
Section 204;
(ii) the deduction for net losses allowed
under Section 207;
(iii) in the case of an S corporation, the
modification under Section 203(b)(2)(S); and
(iv) in the case of a partnership, the
modifications under Section 203(d)(2)(H) and
Section 203(d)(2)(I).
(B) Special rule for tiered partnerships. If a
taxpayer making the election under paragraph (1) is a
partner of another taxpayer making the election under
paragraph (1), net income shall be computed as
provided in subparagraph (A), except that the taxpayer
shall subtract its distributive share of the net
income of the electing partnership (including its
distributive share of the net income of the electing
partnership derived as a distributive share from
electing partnerships in which it is a partner).

SB3019 Enrolled - 1592 - LRB104 20255 HLH 33706 b
(4) Credit for entity level tax. Each partner or
shareholder of a taxpayer making the election under this
Section shall be allowed a credit against the tax imposed
under subsections (a) and (b) of Section 201 of this Act
for the taxable year of the partnership or Subchapter S
corporation for which an election is in effect ending
within or with the taxable year of the partner or
shareholder in an amount equal to 4.95% times the partner
or shareholder's distributive share of the net income of
the electing partnership or Subchapter S corporation, but
not to exceed the partner's or shareholder's share of the
tax imposed under paragraph (1) which is actually paid by
the partnership or Subchapter S corporation. If the
taxpayer is a partnership or Subchapter S corporation that
is itself a partner of a partnership making the election
under paragraph (1), the credit under this paragraph shall
be allowed to the taxpayer's partners or shareholders (or
if the partner is a partnership or Subchapter S
corporation then its partners or shareholders) in
accordance with the determination of income and
distributive share of income under Sections 702 and 704
and Subchapter S of the Internal Revenue Code. If the
amount of the credit allowed under this paragraph exceeds
the partner's or shareholder's liability for tax imposed
under subsections (a) and (b) of Section 201 of this Act
for the taxable year, such excess shall be treated as an

SB3019 Enrolled - 1593 - LRB104 20255 HLH 33706 b
overpayment for purposes of Section 909 of this Act.
(5) Nonresidents. A nonresident individual who is a
partner or shareholder of a partnership or Subchapter S
corporation for a taxable year for which an election is in
effect under paragraph (1) shall not be required to file
an income tax return under this Act for such taxable year
if the only source of net income of the individual (or the
individual and the individual's spouse in the case of a
joint return) is from an entity making the election under
paragraph (1) and the credit allowed to the partner or
shareholder under paragraph (4) equals or exceeds the
individual's liability for the tax imposed under
subsections (a) and (b) of Section 201 of this Act for the
taxable year.
(6) Liability for tax. Except as provided in this
paragraph, a partnership or Subchapter S making the
election under paragraph (1) is liable for the
entity-level tax imposed under paragraph (2). If the
electing partnership or corporation fails to pay the full
amount of tax deemed assessed under paragraph (2), the
partners or shareholders shall be liable to pay the tax
assessed (including penalties and interest). Each partner
or shareholder shall be liable for the unpaid assessment
based on the ratio of the partner's or shareholder's share
of the net income of the partnership over the total net
income of the partnership. If the partnership or

SB3019 Enrolled - 1594 - LRB104 20255 HLH 33706 b
Subchapter S corporation fails to pay the tax assessed
(including penalties and interest) and thereafter an
amount of such tax is paid by the partners or
shareholders, such amount shall not be collected from the
partnership or corporation.
(7) Foreign tax. For purposes of the credit allowed
under Section 601(b)(3) of this Act, tax paid by a
partnership or Subchapter S corporation to another state
which, as determined by the Department, is substantially
similar to the tax imposed under this subsection, shall be
considered tax paid by the partner or shareholder to the
extent that the partner's or shareholder's share of the
income of the partnership or Subchapter S corporation
allocated and apportioned to such other state bears to the
total income of the partnership or Subchapter S
corporation allocated or apportioned to such other state.
(8) Suspension of withholding. The provisions of
Section 709.5 of this Act shall not apply to a partnership
or Subchapter S corporation for the taxable year for which
an election under paragraph (1) is in effect.
(9) Requirement to pay estimated tax. For each taxable
year for which an election under paragraph (1) is in
effect, a partnership or Subchapter S corporation is
required to pay estimated tax for such taxable year under
Sections 803 and 804 of this Act if the amount payable as
estimated tax can reasonably be expected to exceed $500.

SB3019 Enrolled - 1595 - LRB104 20255 HLH 33706 b
(10) The provisions of this subsection shall apply
only with respect to taxable years for which the
limitation on individual deductions applies under Section
164(b)(6) of the Internal Revenue Code.
(Source: P.A. 103-9, eff. 6-7-23; 103-396, eff. 1-1-24;
103-595, eff. 6-26-24; 103-605, eff. 7-1-24; 104-453, eff.
12-12-25.)
(35 ILCS 5/220)
Sec. 220. Angel investment credit.
(a) As used in this Section:
"Applicant" means a corporation, partnership, limited
liability company, or a natural person that makes an
investment in a qualified new business venture. The term
"applicant" does not include (i) a corporation, partnership,
limited liability company, or a natural person who has a
direct or indirect ownership interest of at least 51% in the
profits, capital, or value of the qualified new business
venture receiving the investment or (ii) a related member.
"Claimant" means an applicant certified by the Department
who files a claim for a credit under this Section.
"Department" means the Department of Commerce and Economic
Opportunity.
"Investment" means money (or its equivalent) given to a
qualified new business venture, at a risk of loss, in
consideration for an equity interest of the qualified new

SB3019 Enrolled - 1596 - LRB104 20255 HLH 33706 b
business venture. The Department may adopt rules to permit
certain forms of contingent equity investments to be
considered eligible for a tax credit under this Section.
"Qualified new business venture" means a business that is
registered with the Department under this Section.
"Related member" means a person that, with respect to the
applicant, is any one of the following:
(1) An individual, if the individual and the members
of the individual's family (as defined in Section 318 of
the Internal Revenue Code) own directly, indirectly,
beneficially, or constructively, in the aggregate, at
least 50% of the value of the outstanding profits,
capital, stock, or other ownership interest in the
qualified new business venture that is the recipient of
the applicant's investment.
(2) A partnership, estate, or trust and any partner or
beneficiary, if the partnership, estate, or trust and its
partners or beneficiaries own directly, indirectly,
beneficially, or constructively, in the aggregate, at
least 50% of the profits, capital, stock, or other
ownership interest in the qualified new business venture
that is the recipient of the applicant's investment.
(3) A corporation, and any party related to the
corporation in a manner that would require an attribution
of stock from the corporation under the attribution rules
of Section 318 of the Internal Revenue Code, if the

SB3019 Enrolled - 1597 - LRB104 20255 HLH 33706 b
applicant and any other related member own, in the
aggregate, directly, indirectly, beneficially, or
constructively, at least 50% of the value of the
outstanding stock of the qualified new business venture
that is the recipient of the applicant's investment.
(4) A corporation and any party related to that
corporation in a manner that would require an attribution
of stock from the corporation to the party or from the
party to the corporation under the attribution rules of
Section 318 of the Internal Revenue Code, if the
corporation and all such related parties own, in the
aggregate, at least 50% of the profits, capital, stock, or
other ownership interest in the qualified new business
venture that is the recipient of the applicant's
investment.
(5) A person to or from whom there is attribution of
ownership of stock in the qualified new business venture
that is the recipient of the applicant's investment in
accordance with Section 1563(e) of the Internal Revenue
Code, except that for purposes of determining whether a
person is a related member under this paragraph, "20%"
shall be substituted for "5%" whenever "5%" appears in
Section 1563(e) of the Internal Revenue Code.
(b) For taxable years beginning after December 31, 2010,
and ending on or before December 31, 2032 December 31, 2026,
subject to the limitations provided in this Section, a

SB3019 Enrolled - 1598 - LRB104 20255 HLH 33706 b
claimant may claim, as a credit against the tax imposed under
subsections (a) and (b) of Section 201 of this Act, an amount
equal to 25% of the claimant's investment made directly in a
qualified new business venture. However, the amount of the
credit is 35% of the claimant's investment made directly in
the qualified new business venture if the investment is made
in: (1) a qualified new business venture that is a
minority-owned business, a women-owned business, or a business
owned by a person with a disability (as those terms are used
and defined in the Business Enterprise for Minorities, Women,
and Persons with Disabilities Act); or (2) a qualified new
business venture in which the principal place of business is
located in a county with a population of not more than 250,000.
In order for an investment in a qualified new business venture
to be eligible for tax credits, the business must have applied
for and received certification under subsection (e) for the
taxable year in which the investment was made prior to the date
on which the investment was made. The credit under this
Section may not exceed the taxpayer's Illinois income tax
liability for the taxable year. If the amount of the credit
exceeds the tax liability for the year, the excess may be
carried forward and applied to the tax liability of the 5
taxable years following the excess credit year. The credit
shall be applied to the earliest year for which there is a tax
liability. If there are credits from more than one tax year
that are available to offset a liability, the earlier credit

SB3019 Enrolled - 1599 - LRB104 20255 HLH 33706 b
shall be applied first. In the case of a partnership or
Subchapter S Corporation, the credit is allowed to the
partners or shareholders in accordance with the determination
of income and distributive share of income under Sections 702
and 704 and Subchapter S of the Internal Revenue Code.
(c) The minimum amount an applicant must invest in any
single qualified new business venture in order to be eligible
for a credit under this Section is $10,000. The maximum amount
of an applicant's total investment made in any single
qualified new business venture that may be used as the basis
for a credit under this Section is $2,000,000.
(d) The Department shall implement a program to certify an
applicant for an angel investment credit. Upon satisfactory
review, the Department shall issue a tax credit certificate
stating the amount of the tax credit to which the applicant is
entitled. The Department shall annually certify that: (i) each
qualified new business venture that receives an angel
investment under this Section has maintained a minimum
employment threshold, as defined by rule, in the State (and
continues to maintain a minimum employment threshold in the
State for a period of no less than 3 years from the issue date
of the last tax credit certificate issued by the Department
with respect to such business pursuant to this Section); and
(ii) the claimant's investment has been made and remains,
except in the event of a qualifying liquidity event, in the
qualified new business venture for no less than 3 years.

SB3019 Enrolled - 1600 - LRB104 20255 HLH 33706 b
If an investment for which a claimant is allowed a credit
under subsection (b) is held by the claimant for less than 3
years, other than as a result of a permitted sale of the
investment to person who is not a related member, the claimant
shall pay to the Department of Revenue, in the manner
prescribed by the Department of Revenue, the aggregate amount
of the disqualified credits that the claimant received related
to the subject investment.
If the Department determines that a qualified new business
venture failed to maintain a minimum employment threshold in
the State through the date which is 3 years from the issue date
of the last tax credit certificate issued by the Department
with respect to the subject business pursuant to this Section,
except for any 3-year reporting period that includes March 13,
2020 to January 1, 2024, the claimant or claimants shall pay to
the Department of Revenue, in the manner prescribed by the
Department of Revenue, the aggregate amount of the
disqualified credits that claimant or claimants received
related to investments in that business. For tax credits under
this Section involving a 3-year reporting period that includes
March 13, 2020 to January 1, 2024, the repayment of any tax
credits issued shall be determined at the discretion of the
Department.
(e) The Department shall implement a program to register
qualified new business ventures for purposes of this Section.
A business desiring registration under this Section shall be

SB3019 Enrolled - 1601 - LRB104 20255 HLH 33706 b
required to submit a full and complete application to the
Department. A submitted application shall be effective only
for the taxable year in which it is submitted, and a business
desiring registration under this Section shall be required to
submit a separate application in and for each taxable year for
which the business desires registration. Further, if at any
time prior to the acceptance of an application for
registration under this Section by the Department one or more
events occurs which makes the information provided in that
application materially false or incomplete (in whole or in
part), the business shall promptly notify the Department of
the same. Any failure of a business to promptly provide the
foregoing information to the Department may, at the discretion
of the Department, result in a revocation of a previously
approved application for that business, or disqualification of
the business from future registration under this Section, or
both. The Department may register the business only if all of
the following conditions are satisfied:
(1) it has its principal place of business in this
State;
(2) at least 51% of the employees employed by the
business are employed in this State;
(3) the business has the potential for increasing jobs
in this State, increasing capital investment in this
State, or both, as determined by the Department, and
either of the following apply:

SB3019 Enrolled - 1602 - LRB104 20255 HLH 33706 b
(A) it is principally engaged in innovation in any
of the following: manufacturing; biotechnology;
nanotechnology; communications; agricultural
sciences; clean energy creation or storage technology;
processing or assembling products, including medical
devices, pharmaceuticals, computer software, computer
hardware, semiconductors, other innovative technology
products, or other products that are produced using
manufacturing methods that are enabled by applying
proprietary technology; or providing services that are
enabled by applying proprietary technology; or
(B) it is undertaking pre-commercialization
activity related to proprietary technology that
includes conducting research, developing a new product
or business process, or developing a service that is
principally reliant on applying proprietary
technology;
(4) it is not principally engaged in real estate
development, insurance, banking, lending, lobbying,
political consulting, professional services provided by
attorneys, accountants, business consultants, physicians,
or health care consultants, wholesale or retail trade,
leisure, hospitality, transportation, or construction,
except construction of power production plants that derive
energy from a renewable energy resource, as defined in
Section 1 of the Illinois Power Agency Act;

SB3019 Enrolled - 1603 - LRB104 20255 HLH 33706 b
(5) at the time it is first certified:
(A) it has fewer than 100 employees;
(B) it has been in operation in Illinois for not
more than 10 consecutive years prior to the year of
certification; and
(C) it has received not more than $10,000,000 in
aggregate investments;
(5.1) it agrees to maintain a minimum employment
threshold in the State of Illinois prior to the date which
is 3 years from the issue date of the last tax credit
certificate issued by the Department with respect to that
business pursuant to this Section;
(6) (blank); and
(7) it has received not more than $4,000,000 in
investments that qualified for tax credits under this
Section.
(f) The Department, in consultation with the Department of
Revenue, shall adopt rules to administer this Section. For
taxable years beginning before January 1, 2024, the aggregate
amount of the tax credits that may be claimed under this
Section for investments made in qualified new business
ventures shall be limited to $10,000,000 per calendar year, of
which $500,000 shall be reserved for investments made in
qualified new business ventures which are minority-owned
businesses, women-owned businesses, or businesses owned by a
person with a disability (as those terms are used and defined

SB3019 Enrolled - 1604 - LRB104 20255 HLH 33706 b
in the Business Enterprise for Minorities, Women, and Persons
with Disabilities Act), and an additional $500,000 shall be
reserved for investments made in qualified new business
ventures with their principal place of business in counties
with a population of not more than 250,000. For taxable years
beginning on or after January 1, 2024, the aggregate amount of
the tax credits that may be claimed under this Section for
investments made in qualified new business ventures shall be
limited to $15,000,000 per calendar year, of which $2,500,000
shall be reserved for investments made in qualified new
business ventures that are minority-owned businesses (as the
term is defined in the Business Enterprise for Minorities,
Women, and Persons with Disabilities Act), $1,250,000 shall be
reserved for investments made in qualified new business
ventures that are women-owned businesses or businesses owned
by a person with a disability (as those terms are defined in
the Business Enterprise for Minorities, Women, and Persons
with Disabilities Act), and $1,250,000 shall be reserved for
investments made in qualified new business ventures with their
principal place of business in a county with a population of
not more than 250,000. The annual allowable amounts set forth
in this Section shall be allocated by the Department, on a per
calendar quarter basis and prior to the commencement of each
calendar year, in such proportion as determined by the
Department, provided that: (i) the amount initially allocated
by the Department for any one calendar quarter shall not

SB3019 Enrolled - 1605 - LRB104 20255 HLH 33706 b
exceed 35% of the total allowable amount; (ii) any portion of
the allocated allowable amount remaining unused as of the end
of any of the first 3 calendar quarters of a given calendar
year shall be rolled into, and added to, the total allocated
amount for the next available calendar quarter; and (iii) the
reservation of tax credits for investments in minority-owned
businesses, women-owned businesses, businesses owned by a
person with a disability, and in businesses in counties with a
population of not more than 250,000 is limited to the first 3
calendar quarters of a given calendar year, after which they
may be claimed by investors in any qualified new business
venture.
(g) A claimant may not sell or otherwise transfer a credit
awarded under this Section to another person.
(h) On or before March 1 of each year, the Department shall
report to the Governor and to the General Assembly on the tax
credit certificates awarded under this Section for the prior
calendar year.
(1) This report must include, for each tax credit
certificate awarded:
(A) the name of the claimant and the amount of
credit awarded or allocated to that claimant;
(B) the name and address (including the county) of
the qualified new business venture that received the
investment giving rise to the credit, the North
American Industry Classification System (NAICS) code

SB3019 Enrolled - 1606 - LRB104 20255 HLH 33706 b
applicable to that qualified new business venture, and
the number of employees of the qualified new business
venture; and
(C) the date of approval by the Department of each
claimant's tax credit certificate.
(2) The report must also include:
(A) the total number of applicants and the total
number of claimants, including the amount of each tax
credit certificate awarded to a claimant under this
Section in the prior calendar year;
(B) the total number of applications from
businesses seeking registration under this Section,
the total number of new qualified business ventures
registered by the Department, and the aggregate amount
of investment upon which tax credit certificates were
issued in the prior calendar year; and
(C) the total amount of tax credit certificates
sought by applicants, the amount of each tax credit
certificate issued to a claimant, the aggregate amount
of all tax credit certificates issued in the prior
calendar year and the aggregate amount of tax credit
certificates issued as authorized under this Section
for all calendar years.
(i) For each business seeking registration under this
Section after December 31, 2016, the Department shall require
the business to include in its application the North American

SB3019 Enrolled - 1607 - LRB104 20255 HLH 33706 b
Industry Classification System (NAICS) code applicable to the
business and the number of employees of the business at the
time of application. Each business registered by the
Department as a qualified new business venture that receives
an investment giving rise to the issuance of a tax credit
certificate pursuant to this Section shall, for each of the 3
years following the issue date of the last tax credit
certificate issued by the Department with respect to such
business pursuant to this Section, report to the Department
the following:
(1) the number of employees and the location at which
those employees are employed, both as of the end of each
year;
(2) the amount of additional new capital investment
raised as of the end of each year, if any; and
(3) the terms of any liquidity event occurring during
such year; for the purposes of this Section, a "liquidity
event" means any event that would be considered an exit
for an illiquid investment, including any event that
allows the equity holders of the business (or any material
portion thereof) to cash out some or all of their
respective equity interests.
(Source: P.A. 102-16, eff. 6-17-21; 103-9, eff. 1-1-24;
103-945, eff. 8-9-24.)
(35 ILCS 5/221)

SB3019 Enrolled - 1608 - LRB104 20255 HLH 33706 b
Sec. 221. Rehabilitation costs; qualified historic
properties; River Edge Redevelopment Zone.
(a) For taxable years that begin on or after January 1,
2012 and begin prior to January 1, 2018, there shall be allowed
a tax credit against the tax imposed by subsections (a) and (b)
of Section 201 of this Act in an amount equal to 25% of
qualified expenditures incurred by a qualified taxpayer during
the taxable year in the restoration and preservation of a
qualified historic structure located in a River Edge
Redevelopment Zone pursuant to a qualified rehabilitation
plan, provided that the total amount of such expenditures (i)
must equal $5,000 or more and (ii) must exceed 50% of the
purchase price of the property.
(a-1) For taxable years that begin on or after January 1,
2018 and end prior to January 1, 2034 January 1, 2029, there
shall be allowed a tax credit against the tax imposed by
subsections (a) and (b) of Section 201 of this Act in an
aggregate amount equal to 25% of qualified expenditures
incurred by a qualified taxpayer in the restoration and
preservation of a qualified historic structure located in a
River Edge Redevelopment Zone pursuant to a qualified
rehabilitation plan, provided that the total amount of such
expenditures must (i) equal $5,000 or more and (ii) exceed the
adjusted basis of the qualified historic structure on the
first day the qualified rehabilitation plan begins. For any
rehabilitation project, regardless of duration or number of

SB3019 Enrolled - 1609 - LRB104 20255 HLH 33706 b
phases, the project's compliance with the foregoing provisions
(i) and (ii) shall be determined based on the aggregate amount
of qualified expenditures for the entire project and may
include expenditures incurred under subsection (a), this
subsection, or both subsection (a) and this subsection. If the
qualified rehabilitation plan spans multiple years, the
aggregate credit for the entire project shall be allowed in
the last taxable year, except for phased rehabilitation
projects, which may receive credits upon completion of each
phase. Before obtaining the first phased credit: (A) the total
amount of such expenditures must meet the requirements of
provisions (i) and (ii) of this subsection; (B) the
rehabilitated portion of the qualified historic structure must
be placed in service; and (C) the requirements of subsection
(b) must be met.
(a-2) For taxable years beginning on or after January 1,
2021 and ending prior to January 1, 2029, there shall be
allowed a tax credit against the tax imposed by subsections
(a) and (b) of Section 201 as provided in Section 10-10.3 of
the River Edge Redevelopment Zone Act. The credit allowed
under this subsection (a-2) shall apply only to taxpayers that
make a capital investment of at least $1,000,000 in a
qualified rehabilitation plan.
The credit or credits may not reduce the taxpayer's
liability to less than zero. If the amount of the credit or
credits exceeds the taxpayer's liability, the excess may be

SB3019 Enrolled - 1610 - LRB104 20255 HLH 33706 b
carried forward and applied against the taxpayer's liability
in succeeding calendar years in the manner provided under
paragraph (4) of Section 211 of this Act. The credit or credits
shall be applied to the earliest year for which there is a tax
liability. If there are credits from more than one taxable
year that are available to offset a liability, the earlier
credit shall be applied first.
For partners, shareholders of Subchapter S corporations,
and owners of limited liability companies, if the liability
company is treated as a partnership for the purposes of
federal and State income taxation, there shall be allowed a
credit under this Section to be determined in accordance with
the determination of income and distributive share of income
under Sections 702 and 704 and Subchapter S of the Internal
Revenue Code.
The total aggregate amount of credits awarded under the
Blue Collar Jobs Act (Article 20 of this amendatory Act of the
101st General Assembly) shall not exceed $20,000,000 in any
State fiscal year.
(b) To obtain a tax credit pursuant to this Section, the
taxpayer must apply with the Department of Natural Resources.
The Department of Natural Resources shall determine the amount
of eligible rehabilitation costs and expenses in addition to
the amount of the River Edge construction jobs credit within
45 days of receipt of a complete application. The taxpayer
must submit a certification of costs prepared by an

SB3019 Enrolled - 1611 - LRB104 20255 HLH 33706 b
independent certified public accountant that certifies (i) the
project expenses, (ii) whether those expenses are qualified
expenditures, and (iii) that the qualified expenditures exceed
the adjusted basis of the qualified historic structure on the
first day the qualified rehabilitation plan commenced. The
Department of Natural Resources is authorized, but not
required, to accept this certification of costs to determine
the amount of qualified expenditures and the amount of the
credit. The Department of Natural Resources shall provide
guidance as to the minimum standards to be followed in the
preparation of such certification. The Department of Natural
Resources and the National Park Service shall determine
whether the rehabilitation is consistent with the United
States Secretary of the Interior's Standards for
Rehabilitation.
(b-1) Upon completion of the project and approval of the
complete application, the Department of Natural Resources
shall issue a single certificate in the amount of the eligible
credits equal to 25% of qualified expenditures incurred during
the eligible taxable years, as defined in subsections (a) and
(a-1), excepting any credits awarded under subsection (a)
prior to January 1, 2019 (the effective date of Public Act
100-629) and any phased credits issued prior to the eligible
taxable year under subsection (a-1). At the time the
certificate is issued, an issuance fee up to the maximum
amount of 2% of the amount of the credits issued by the

SB3019 Enrolled - 1612 - LRB104 20255 HLH 33706 b
certificate may be collected from the applicant to administer
the provisions of this Section. If collected, this issuance
fee shall be deposited into the Historic Property
Administrative Fund, a special fund created in the State
treasury. Subject to appropriation, moneys in the Historic
Property Administrative Fund shall be provided to the
Department of Natural Resources as reimbursement for the costs
associated with administering this Section.
(c) The taxpayer must attach the certificate to the tax
return on which the credits are to be claimed. The tax credit
under this Section may not reduce the taxpayer's liability to
less than zero. If the amount of the credit exceeds the tax
liability for the year, the excess credit may be carried
forward and applied to the tax liability of the 5 taxable years
following the excess credit year.
(c-1) Subject to appropriation, moneys in the Historic
Property Administrative Fund shall be used, on a biennial
basis beginning at the end of the second fiscal year after
January 1, 2019 (the effective date of Public Act 100-629), to
hire a qualified third party to prepare a biennial report to
assess the overall economic impact to the State from the
qualified rehabilitation projects under this Section completed
in that year and in previous years. The overall economic
impact shall include at least: (1) the direct and indirect or
induced economic impacts of completed projects; (2) temporary,
permanent, and construction jobs created; (3) sales, income,

SB3019 Enrolled - 1613 - LRB104 20255 HLH 33706 b
and property tax generation before, during construction, and
after completion; and (4) indirect neighborhood impact after
completion. The report shall be submitted to the Governor and
the General Assembly. The report to the General Assembly shall
be filed with the Clerk of the House of Representatives and the
Secretary of the Senate in electronic form only, in the manner
that the Clerk and the Secretary shall direct.
(c-2) The Department of Natural Resources may adopt rules
to implement this Section in addition to the rules expressly
authorized in this Section.
(d) As used in this Section, the following terms have the
following meanings.
"Phased rehabilitation" means a project that is completed
in phases, as defined under Section 47 of the federal Internal
Revenue Code and pursuant to National Park Service regulations
at 36 C.F.R. 67.
"Placed in service" means the date when the property is
placed in a condition or state of readiness and availability
for a specifically assigned function as defined under Section
47 of the federal Internal Revenue Code and federal Treasury
Regulation Sections 1.46 and 1.48.
"Qualified expenditure" means all the costs and expenses
defined as qualified rehabilitation expenditures under Section
47 of the federal Internal Revenue Code that were incurred in
connection with a qualified historic structure.
"Qualified historic structure" means a certified historic

SB3019 Enrolled - 1614 - LRB104 20255 HLH 33706 b
structure as defined under Section 47(c)(3) of the federal
Internal Revenue Code.
"Qualified rehabilitation plan" means a project that is
approved by the Department of Natural Resources and the
National Park Service as being consistent with the United
States Secretary of the Interior's Standards for
Rehabilitation.
"Qualified taxpayer" means the owner of the qualified
historic structure or any other person who qualifies for the
federal rehabilitation credit allowed by Section 47 of the
federal Internal Revenue Code with respect to that qualified
historic structure. Partners, shareholders of subchapter S
corporations, and owners of limited liability companies (if
the limited liability company is treated as a partnership for
purposes of federal and State income taxation) are entitled to
a credit under this Section to be determined in accordance
with the determination of income and distributive share of
income under Sections 702 and 703 and subchapter S of the
Internal Revenue Code, provided that credits granted to a
partnership, a limited liability company taxed as a
partnership, or other multiple owners of property shall be
passed through to the partners, members, or owners
respectively on a pro rata basis or pursuant to an executed
agreement among the partners, members, or owners documenting
any alternate distribution method.
(Source: P.A. 104-434, eff. 11-21-25.)

SB3019 Enrolled - 1615 - LRB104 20255 HLH 33706 b
(35 ILCS 5/231)
Sec. 231. Apprenticeship education expense credit.
(a) As used in this Section:
"Accredited training organization" means an organization
that:
(1) incurs costs related to training apprentice
employees;
(2) maintains an apprenticeship program approved by
the United States Department of Labor, Office of
Apprenticeships, that results in an industry-recognized
credential; and either
(3) is affiliated with a public or nonpublic secondary
school in Illinois and is:
(A) an institution of higher education that
provides a program that leads to an
industry-recognized postsecondary credential or
degree;
(B) an entity that carries out programs that
are registered under the federal National
Apprenticeship Act; or
(C) a public or private provider of a program
of training services, including, but not limited to, a
joint labor-management organization; or
(4) is not affiliated with a public or nonpublic
secondary school in Illinois but receives preapproval from

SB3019 Enrolled - 1616 - LRB104 20255 HLH 33706 b
the Department to receive tax credits under this Section.
"Department" means the Department of Commerce and Economic
Opportunity.
"Employer" means an Illinois taxpayer who is the employer
of the qualifying apprentice.
"Qualifying apprentice" means an individual who: (i) is a
resident of the State of Illinois; (ii) is at least 16 years
old at the close of the school year for which a credit is
sought; (iii) during the school year for which a credit is
sought, was a full-time apprentice enrolled in an
apprenticeship program which is registered with the United
States Department of Labor, Office of Apprenticeship; and (iv)
is employed in Illinois by the taxpayer who is the employer.
"Qualified education expense" means the amount incurred on
behalf of a qualifying apprentice not to exceed $3,500 for
tuition, instructional materials, fees (including, but not
limited to, book, license, and lab fees), or other expenses
that are directly related to training the apprentices and that
are preapproved by the Department. All expenses must be paid
to or incurred for training at the school, community college,
or organization where the apprentice receives training.
(b) For taxable years beginning on or after January 1,
2020, and beginning on or before January 1, 2032 January 1,
2027, the employer of one or more qualifying apprentices shall
be allowed a credit against the tax imposed by subsections (a)
and (b) of Section 201 of the Illinois Income Tax Act. The

SB3019 Enrolled - 1617 - LRB104 20255 HLH 33706 b
credit shall be equal to $3,500 per qualifying apprentice. A
taxpayer shall be entitled to an additional $1,500 credit
against the tax imposed by subsections (a) and (b) of Section
201 of the Illinois Income Tax Act if (i) the qualifying
apprentice resides in an underserved area as defined in
Section 5-5 of the Economic Development for a Growing Economy
Tax Credit Act during the school year for which a credit is
sought by an employer or (ii) the employer's principal place
of business is located in an underserved area, as defined in
Section 5-5 of the Economic Development for a Growing Economy
Tax Credit Act. In no event shall a credit under this Section
reduce the taxpayer's liability under this Act to less than
zero. For taxable years ending before December 31, 2023, for
partners, shareholders of Subchapter S corporations, and
owners of limited liability companies, if the liability
company is treated as a partnership for purposes of federal
and State income taxation, there shall be allowed a credit
under this Section to be determined in accordance with the
determination of income and distributive share of income under
Sections 702 and 704 and Subchapter S of the Internal Revenue
Code. For taxable years ending on or after December 31, 2023,
partners and shareholders of subchapter S corporations are
entitled to a credit under this Section as provided in Section
251.
(c) The Department shall implement a program to certify
applicants for an apprenticeship credit under this Section.

SB3019 Enrolled - 1618 - LRB104 20255 HLH 33706 b
Upon satisfactory review, the Department shall issue a tax
credit certificate to an employer incurring costs on behalf of
a qualifying apprentice stating the amount of the tax credit
to which the employer is entitled. If the employer is seeking a
tax credit for multiple qualifying apprentices, the Department
may issue a single tax credit certificate that encompasses the
aggregate total of tax credits for qualifying apprentices for
a single employer.
(d) The Department, in addition to those powers granted
under the Civil Administrative Code of Illinois, is granted
and shall have all the powers necessary or convenient to carry
out and effectuate the purposes and provisions of this
Section, including, but not limited to, power and authority
to:
(1) Adopt rules deemed necessary and appropriate for
the administration of this Section; establish forms for
applications, notifications, contracts, or any other
agreements; and accept applications at any time during the
year and require that all applications be submitted via
the Internet. The Department shall require that
applications be submitted in electronic form.
(2) Provide guidance and assistance to applicants
pursuant to the provisions of this Section and cooperate
with applicants to promote, foster, and support job
creation within the State.
(3) Enter into agreements and memoranda of

SB3019 Enrolled - 1619 - LRB104 20255 HLH 33706 b
understanding for participation of and engage in
cooperation with agencies of the federal government, units
of local government, universities, research foundations or
institutions, regional economic development corporations,
or other organizations for the purposes of this Section.
(4) Gather information and conduct inquiries, in the
manner and by the methods it deems desirable, including,
without limitation, gathering information with respect to
applicants for the purpose of making any designations or
certifications necessary or desirable or to gather
information in furtherance of the purposes of this Act.
(5) Establish, negotiate, and effectuate any term,
agreement, or other document with any person necessary or
appropriate to accomplish the purposes of this Section,
and consent, subject to the provisions of any agreement
with another party, to the modification or restructuring
of any agreement to which the Department is a party.
(6) Provide for sufficient personnel to permit
administration, staffing, operation, and related support
required to adequately discharge its duties and
responsibilities described in this Section from funds made
available through charges to applicants or from funds as
may be appropriated by the General Assembly for the
administration of this Section.
(7) Require applicants, upon written request, to issue
any necessary authorization to the appropriate federal,

SB3019 Enrolled - 1620 - LRB104 20255 HLH 33706 b
State, or local authority or any other person for the
release to the Department of information requested by the
Department, including, but not be limited to, financial
reports, returns, or records relating to the applicant or
to the amount of credit allowable under this Section.
(8) Require that an applicant shall, at all times,
keep proper books of record and account in accordance with
generally accepted accounting principles consistently
applied, with the books, records, or papers related to the
agreement in the custody or control of the applicant open
for reasonable Department inspection and audits,
including, without limitation, the making of copies of the
books, records, or papers.
(9) Take whatever actions are necessary or appropriate
to protect the State's interest in the event of
bankruptcy, default, foreclosure, or noncompliance with
the terms and conditions of financial assistance or
participation required under this Section or any agreement
entered into under this Section, including the power to
sell, dispose of, lease, or rent, upon terms and
conditions determined by the Department to be appropriate,
real or personal property that the Department may recover
as a result of these actions.
(e) The Department, in consultation with the Department of
Revenue, shall adopt rules to administer this Section. The
aggregate amount of the tax credits that may be claimed under

SB3019 Enrolled - 1621 - LRB104 20255 HLH 33706 b
this Section for qualified education expenses incurred by an
employer on behalf of a qualifying apprentice shall be limited
to $5,000,000 per calendar year. If applications for a greater
amount are received, credits shall be allowed on a first-come
first-served basis, based on the date on which each properly
completed application for a certificate of eligibility is
received by the Department. If more than one certificate is
received on the same day, the credits will be awarded based on
the time of submission for that particular day.
(f) An employer may not sell or otherwise transfer a
credit awarded under this Section to another person or
taxpayer.
(g) The employer shall provide the Department such
information as the Department may require, including, but not
limited to: (i) the name, age, and identification number of
each qualifying apprentice employed by the taxpayer during the
taxable year; (ii) the amount of qualified education expenses
incurred with respect to each qualifying apprentice; and (iii)
the name of the accredited training organization at which the
qualifying apprentice is enrolled and the qualified education
expenses are incurred.
(h) On or before July 1 of each year, the Department shall
report to the Governor and the General Assembly on the tax
credit certificates awarded under this Section for the prior
calendar year. The report must include:
(1) the name of each employer awarded or allocated a

SB3019 Enrolled - 1622 - LRB104 20255 HLH 33706 b
credit;
(2) the number of qualifying apprentices for whom the
employer has incurred qualified education expenses;
(3) the North American Industry Classification System
(NAICS) code applicable to each employer awarded or
allocated a credit;
(4) the amount of the credit awarded or allocated to
each employer;
(5) the total number of employers awarded or allocated
a credit;
(6) the total number of qualifying apprentices for
whom employers receiving credits under this Section
incurred qualified education expenses; and
(7) the average cost to the employer of all
apprenticeships receiving credits under this Section.
(Source: P.A. 103-396, eff. 1-1-24; 103-1059, eff. 12-20-24;
104-6, eff. 6-16-25; 104-434, eff. 11-21-25.)
(35 ILCS 5/242)
Sec. 242. Music and Musicians Tax Credits and Jobs Act.
Taxpayers who have been awarded a credit under the Music and
Musicians Tax Credits and Jobs Act are entitled to a credit
against the taxes imposed by subsections (a) and (b) of
Section 201 of this Act in an amount determined by the
Department of Commerce and Economic Opportunity under that
Act. The credit shall be claimed for in the taxable year in

SB3019 Enrolled - 1623 - LRB104 20255 HLH 33706 b
which the tax credit award certificate is issued, and the
certificate shall be attached to the return. If the taxpayer
is a partnership or Subchapter S corporation, the credit shall
be allowed to the partners or shareholders in accordance with
the provisions of Section 251.
The credit may not reduce the taxpayer's liability to less
than zero. If the amount of the credit exceeds the tax
liability for the year, the excess may be carried forward and
applied to the tax liability of the 5 taxable years following
the excess credit year. The credit shall be applied to the
earliest year for which there is a tax liability. If there are
credits from more than one tax year that are available to
offset a liability, the earlier credit shall be applied first.
(Source: P.A. 103-592, Article 52, Section 52-5, eff. 6-7-24;
104-417, eff. 8-15-25.)
ARTICLE 830
Section 830-5. The Reimagining Energy and Vehicles in
Illinois Act is amended by changing Section 85 as follows:
(20 ILCS 686/85)
Sec. 85. Sunset of new agreements. The Department shall
not enter into any new Agreements under the provisions of this
Act after December 31, 2028 2027.
(Source: P.A. 102-669, eff. 11-16-21.)

SB3019 Enrolled - 1624 - LRB104 20255 HLH 33706 b
ARTICLE 995
Section 995-95. No acceleration or delay. Where this Act
makes changes in a statute that is represented in this Act by
text that is not yet or no longer in effect (for example, a
Section represented by multiple versions), the use of that
text does not accelerate or delay the taking effect of (i) the
changes made by this Act or (ii) provisions derived from any
other Public Act.
ARTICLE 997
Section 997-97. Severability. The provisions of this Act
are severable under Section 1.31 of the Statute on Statutes.
ARTICLE 999
Section 999-99. Effective date. This Act takes effect upon
becoming law, except that Articles 25 and 65 take effect on
July 1, 2026.