Bill Text: IL SB3445 | 2017-2018 | 100th General Assembly | Enrolled


Bill Title: Amends the Corporate Accountability for Tax Expenditures Act. Repeals a Section requiring the Department of Revenue to submit an annual Unified Economic Development Budget to the General Assembly. Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. Makes changes concerning electronic payments. Amends the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Provides that property purchased by a purchaser who is exempt from tax under federal law is exempt from the taxes under those Acts. Makes changes concerning rolling stock. Amends the State Finance Act, the Use Tax Act, the Service Use Tax Act, the Service Occupation Tax Act, the Retailers' Occupation Tax Act, and numerous other Acts imposing local use and occupation taxes to include a reference to tangible personal property that is subject to the 1% rate under the Retailers' Occupation Tax Act and the Service Occupation Tax Act (currently, those items are specifically named). Amends the Motor Fuel Tax Law. Provides that certain waivers may be granted in case of a disaster in another jurisdiction (currently, another state). Amends the Illinois Horse Racing Act of 1975. Makes changes concerning the collection of the pari-mutuel tax. Makes other changes. Effective immediately.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Enrolled) 2018-12-14 - Sent to the Governor [SB3445 Detail]

Download: Illinois-2017-SB3445-Enrolled.html



SB3445 EnrolledLRB100 20331 HLH 35618 b
1 AN ACT concerning revenue.
2 Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4 Section 5. The Renewable Energy, Energy Efficiency, and
5Coal Resources Development Law of 1997 is amended by changing
6Section 6-5 and by adding Section 6-8 as follows:
7 (20 ILCS 687/6-5)
8 (Section scheduled to be repealed on December 31, 2020)
9 Sec. 6-5. Renewable Energy Resources and Coal Technology
10Development Assistance Charge.
11 (a) Notwithstanding the provisions of Section 16-111 of the
12Public Utilities Act but subject to subsection (e) of this
13Section, each public utility, electric cooperative, as defined
14in Section 3.4 of the Electric Supplier Act, and municipal
15utility, as referenced in Section 3-105 of the Public Utilities
16Act, that is engaged in the delivery of electricity or the
17distribution of natural gas within the State of Illinois shall,
18effective January 1, 1998, assess each of its customer accounts
19a monthly Renewable Energy Resources and Coal Technology
20Development Assistance Charge. The delivering public utility,
21municipal electric or gas utility, or electric or gas
22cooperative for a self-assessing purchaser remains subject to
23the collection of the fee imposed by this Section. The monthly

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1charge shall be as follows:
2 (1) $0.05 per month on each account for residential
3 electric service as defined in Section 13 of the Energy
4 Assistance Act;
5 (2) $0.05 per month on each account for residential gas
6 service as defined in Section 13 of the Energy Assistance
7 Act;
8 (3) $0.50 per month on each account for nonresidential
9 electric service, as defined in Section 13 of the Energy
10 Assistance Act, which had less than 10 megawatts of peak
11 demand during the previous calendar year;
12 (4) $0.50 per month on each account for nonresidential
13 gas service, as defined in Section 13 of the Energy
14 Assistance Act, which had distributed to it less than
15 4,000,000 therms of gas during the previous calendar year;
16 (5) $37.50 per month on each account for nonresidential
17 electric service, as defined in Section 13 of the Energy
18 Assistance Act, which had 10 megawatts or greater of peak
19 demand during the previous calendar year; and
20 (6) $37.50 per month on each account for nonresidential
21 gas service, as defined in Section 13 of the Energy
22 Assistance Act, which had 4,000,000 or more therms of gas
23 distributed to it during the previous calendar year.
24 (b) The Renewable Energy Resources and Coal Technology
25Development Assistance Charge assessed by electric and gas
26public utilities shall be considered a charge for public

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1utility service.
2 (c) Fifty percent of the moneys collected pursuant to this
3Section shall be deposited in the Renewable Energy Resources
4Trust Fund by the Department of Revenue. From those funds,
5$2,000,000 may be used annually by the Department to provide
6grants to the Illinois Green Economy Network for the purposes
7of funding education and training for renewable energy and
8energy efficiency technology and for the operation and services
9of the Illinois Green Economy Network. The remaining 50 percent
10of the moneys collected pursuant to this Section shall be
11deposited in the Coal Technology Development Assistance Fund by
12the Department of Revenue for the exclusive purposes of (1)
13capturing or sequestering carbon emissions produced by coal
14combustion; (2) supporting research on the capture and
15sequestration of carbon emissions produced by coal combustion;
16and (3) improving coal miner safety.
17 (d) By the 20th day of the month following the month in
18which the charges imposed by this Section were collected, each
19utility and alternative retail electric supplier collecting
20charges pursuant to this Section shall remit to the Department
21of Revenue for deposit in the Renewable Energy Resources Trust
22Fund and the Coal Technology Development Assistance Fund all
23moneys received as payment of the charge provided for in this
24Section on a return prescribed and furnished by the Department
25of Revenue showing such information as the Department of
26Revenue may reasonably require.

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1 If any payment provided for in this Section exceeds the
2utility or alternate retail electric supplier's liabilities
3under this Act, as shown on an original return, the utility or
4alternative retail electric supplier may credit the excess
5payment against liability subsequently to be remitted to the
6Department of Revenue under this Act.
7 (e) The charges imposed by this Section shall only apply to
8customers of municipal electric or gas utilities and electric
9or gas cooperatives if the municipal electric or gas utility or
10electric or gas cooperative makes an affirmative decision to
11impose the charge. If a municipal electric or gas utility or an
12electric or gas cooperative makes an affirmative decision to
13impose the charge provided by this Section, the municipal
14electric or gas utility or electric or gas cooperative shall
15inform the Department of Revenue in writing of such decision
16when it begins to impose the charge. If a municipal electric or
17gas utility or electric or gas cooperative does not assess this
18charge, its customers shall not be eligible for the Renewable
19Energy Resources Program.
20 (f) The Department of Revenue may establish such rules as
21it deems necessary to implement this Section.
22(Source: P.A. 100-402, eff. 8-25-17.)
23 (20 ILCS 687/6-8 new)
24 Sec. 6-8. Application of Retailers' Occupation Tax
25provisions. All the provisions of Sections 4, 5, 5a, 5b, 5c,

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15d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12,
2and 13 of the Retailers' Occupation Tax Act that are not
3inconsistent with this Act apply, as far as practicable, to the
4surcharge imposed by this Act to the same extent as if those
5provisions were included in this Act. References in the
6incorporated Sections of the Retailers' Occupation Tax Act to
7retailers, to sellers, or to persons engaged in the business of
8selling tangible personal property mean persons required to
9remit the charge imposed under this Act.
10 Section 15. The Department of Revenue Law of the Civil
11Administrative Code of Illinois is amended by changing Section
122505-210 as follows:
13 (20 ILCS 2505/2505-210) (was 20 ILCS 2505/39c-1)
14 Sec. 2505-210. Electronic funds transfer.
15 (a) The Department may provide means by which persons
16having a tax liability under any Act administered by the
17Department may use electronic funds transfer to pay the tax
18liability.
19 (b) Mandatory payment by electronic funds transfer.
20Beginning on October 1, 2002, and through September 30, 2010, a
21taxpayer who has an annual tax liability of $200,000 or more
22shall make all payments of that tax to the Department by
23electronic funds transfer. Beginning October 1, 2010, a
24taxpayer (other than an individual taxpayer) who has an annual

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1tax liability of $20,000 or more and an individual taxpayer who
2has an annual tax liability of $200,000 or more shall make all
3payments of that tax to the Department by electronic funds
4transfer. Before August 1 of each year, beginning in 2002, the
5Department shall notify all taxpayers required to make payments
6by electronic funds transfer. All taxpayers required to make
7payments by electronic funds transfer shall make those payments
8for a minimum of one year beginning on October 1. For purposes
9of this subsection (b), the term "annual tax liability" means,
10except as provided in subsections (c) and (d) of this Section,
11the sum of the taxpayer's liabilities under a tax Act
12administered by the Department, except the Motor Fuel Tax Law
13and the Environmental Impact Fee Law, for the immediately
14preceding calendar year.
15 (c) For purposes of subsection (b), the term "annual tax
16liability" means, for a taxpayer that incurs a tax liability
17under the Retailers' Occupation Tax Act, Service Occupation Tax
18Act, Use Tax Act, Service Use Tax Act, or any other State or
19local occupation or use tax law that is administered by the
20Department, the sum of the taxpayer's liabilities under the
21Retailers' Occupation Tax Act, Service Occupation Tax Act, Use
22Tax Act, Service Use Tax Act, and all other State and local
23occupation and use tax laws administered by the Department for
24the immediately preceding calendar year.
25 (d) For purposes of subsection (b), the term "annual tax
26liability" means, for a taxpayer that incurs an Illinois income

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1tax liability, the greater of:
2 (1) the amount of the taxpayer's tax liability under
3 Article 7 of the Illinois Income Tax Act for the
4 immediately preceding calendar year; or
5 (2) the taxpayer's estimated tax payment obligation
6 under Article 8 of the Illinois Income Tax Act for the
7 immediately preceding calendar year.
8 (e) The Department shall adopt such rules as are necessary
9to effectuate a program of electronic funds transfer and the
10requirements of this Section.
11(Source: P.A. 96-1027, eff. 7-12-10.)
12 Section 20. The State Finance Act is amended by changing
13Section 6z-18 as follows:
14 (30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
15 Sec. 6z-18. Local Government Tax Fund. A portion of the
16money paid into the Local Government Tax Fund from sales of
17tangible personal property taxed at the 1% rate under the
18Retailers' Occupation Tax Act and the Service Occupation Tax
19Act food for human consumption which is to be consumed off the
20premises where it is sold (other than alcoholic beverages, soft
21drinks and food which has been prepared for immediate
22consumption) and prescription and nonprescription medicines,
23drugs, medical appliances and insulin, urine testing
24materials, syringes and needles used by diabetics, which

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1occurred in municipalities, shall be distributed to each
2municipality based upon the sales which occurred in that
3municipality. The remainder shall be distributed to each county
4based upon the sales which occurred in the unincorporated area
5of that county.
6 A portion of the money paid into the Local Government Tax
7Fund from the 6.25% general use tax rate on the selling price
8of tangible personal property which is purchased outside
9Illinois at retail from a retailer and which is titled or
10registered by any agency of this State's government shall be
11distributed to municipalities as provided in this paragraph.
12Each municipality shall receive the amount attributable to
13sales for which Illinois addresses for titling or registration
14purposes are given as being in such municipality. The remainder
15of the money paid into the Local Government Tax Fund from such
16sales shall be distributed to counties. Each county shall
17receive the amount attributable to sales for which Illinois
18addresses for titling or registration purposes are given as
19being located in the unincorporated area of such county.
20 A portion of the money paid into the Local Government Tax
21Fund from the 6.25% general rate (and, beginning July 1, 2000
22and through December 31, 2000, the 1.25% rate on motor fuel and
23gasohol, and beginning on August 6, 2010 through August 15,
242010, the 1.25% rate on sales tax holiday items) on sales
25subject to taxation under the Retailers' Occupation Tax Act and
26the Service Occupation Tax Act, which occurred in

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1municipalities, shall be distributed to each municipality,
2based upon the sales which occurred in that municipality. The
3remainder shall be distributed to each county, based upon the
4sales which occurred in the unincorporated area of such county.
5 For the purpose of determining allocation to the local
6government unit, a retail sale by a producer of coal or other
7mineral mined in Illinois is a sale at retail at the place
8where the coal or other mineral mined in Illinois is extracted
9from the earth. This paragraph does not apply to coal or other
10mineral when it is delivered or shipped by the seller to the
11purchaser at a point outside Illinois so that the sale is
12exempt under the United States Constitution as a sale in
13interstate or foreign commerce.
14 Whenever the Department determines that a refund of money
15paid into the Local Government Tax Fund should be made to a
16claimant instead of issuing a credit memorandum, the Department
17shall notify the State Comptroller, who shall cause the order
18to be drawn for the amount specified, and to the person named,
19in such notification from the Department. Such refund shall be
20paid by the State Treasurer out of the Local Government Tax
21Fund.
22 As soon as possible after the first day of each month,
23beginning January 1, 2011, upon certification of the Department
24of Revenue, the Comptroller shall order transferred, and the
25Treasurer shall transfer, to the STAR Bonds Revenue Fund the
26local sales tax increment, as defined in the Innovation

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1Development and Economy Act, collected during the second
2preceding calendar month for sales within a STAR bond district
3and deposited into the Local Government Tax Fund, less 3% of
4that amount, which shall be transferred into the Tax Compliance
5and Administration Fund and shall be used by the Department,
6subject to appropriation, to cover the costs of the Department
7in administering the Innovation Development and Economy Act.
8 After the monthly transfer to the STAR Bonds Revenue Fund,
9on or before the 25th day of each calendar month, the
10Department shall prepare and certify to the Comptroller the
11disbursement of stated sums of money to named municipalities
12and counties, the municipalities and counties to be those
13entitled to distribution of taxes or penalties paid to the
14Department during the second preceding calendar month. The
15amount to be paid to each municipality or county shall be the
16amount (not including credit memoranda) collected during the
17second preceding calendar month by the Department and paid into
18the Local Government Tax Fund, plus an amount the Department
19determines is necessary to offset any amounts which were
20erroneously paid to a different taxing body, and not including
21an amount equal to the amount of refunds made during the second
22preceding calendar month by the Department, and not including
23any amount which the Department determines is necessary to
24offset any amounts which are payable to a different taxing body
25but were erroneously paid to the municipality or county, and
26not including any amounts that are transferred to the STAR

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1Bonds Revenue Fund. Within 10 days after receipt, by the
2Comptroller, of the disbursement certification to the
3municipalities and counties, provided for in this Section to be
4given to the Comptroller by the Department, the Comptroller
5shall cause the orders to be drawn for the respective amounts
6in accordance with the directions contained in such
7certification.
8 When certifying the amount of monthly disbursement to a
9municipality or county under this Section, the Department shall
10increase or decrease that amount by an amount necessary to
11offset any misallocation of previous disbursements. The offset
12amount shall be the amount erroneously disbursed within the 6
13months preceding the time a misallocation is discovered.
14 The provisions directing the distributions from the
15special fund in the State Treasury provided for in this Section
16shall constitute an irrevocable and continuing appropriation
17of all amounts as provided herein. The State Treasurer and
18State Comptroller are hereby authorized to make distributions
19as provided in this Section.
20 In construing any development, redevelopment, annexation,
21preannexation or other lawful agreement in effect prior to
22September 1, 1990, which describes or refers to receipts from a
23county or municipal retailers' occupation tax, use tax or
24service occupation tax which now cannot be imposed, such
25description or reference shall be deemed to include the
26replacement revenue for such abolished taxes, distributed from

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1the Local Government Tax Fund.
2 As soon as possible after the effective date of this
3amendatory Act of the 98th General Assembly, the State
4Comptroller shall order and the State Treasurer shall transfer
5$6,600,000 from the Local Government Tax Fund to the Illinois
6State Medical Disciplinary Fund.
7(Source: P.A. 97-333, eff. 8-12-11; 98-3, eff. 3-8-13.)
8 Section 25. The Illinois Income Tax Act is amended by
9changing Section 901 and by adding Section 703A as follows:
10 (35 ILCS 5/703A new)
11 Sec. 703A. Information for reportable payment
12transactions. Every person required under Section 6050W of the
13Internal Revenue Code to file federal Form 1099-K, Third-Party
14Payment Card and Third Party Network Transactions, identifying
15a reportable payment transaction to a payee with an Illinois
16address shall furnish a copy to the Department at such time and
17in such manner as the Department may prescribe.
18 (35 ILCS 5/901) (from Ch. 120, par. 9-901)
19 Sec. 901. Collection authority.
20 (a) In general. The Department shall collect the taxes
21imposed by this Act. The Department shall collect certified
22past due child support amounts under Section 2505-650 of the
23Department of Revenue Law of the Civil Administrative Code of

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1Illinois. Except as provided in subsections (b), (c), (e), (f),
2(g), and (h) of this Section, money collected pursuant to
3subsections (a) and (b) of Section 201 of this Act shall be
4paid into the General Revenue Fund in the State treasury; money
5collected pursuant to subsections (c) and (d) of Section 201 of
6this Act shall be paid into the Personal Property Tax
7Replacement Fund, a special fund in the State Treasury; and
8money collected under Section 2505-650 of the Department of
9Revenue Law of the Civil Administrative Code of Illinois (20
10ILCS 2505/2505-650) shall be paid into the Child Support
11Enforcement Trust Fund, a special fund outside the State
12Treasury, or to the State Disbursement Unit established under
13Section 10-26 of the Illinois Public Aid Code, as directed by
14the Department of Healthcare and Family Services.
15 (b) Local Government Distributive Fund. Beginning August
161, 1969, and continuing through June 30, 1994, the Treasurer
17shall transfer each month from the General Revenue Fund to a
18special fund in the State treasury, to be known as the "Local
19Government Distributive Fund", an amount equal to 1/12 of the
20net revenue realized from the tax imposed by subsections (a)
21and (b) of Section 201 of this Act during the preceding month.
22Beginning July 1, 1994, and continuing through June 30, 1995,
23the Treasurer shall transfer each month from the General
24Revenue Fund to the Local Government Distributive Fund an
25amount equal to 1/11 of the net revenue realized from the tax
26imposed by subsections (a) and (b) of Section 201 of this Act

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1during the preceding month. Beginning July 1, 1995 and
2continuing through January 31, 2011, the Treasurer shall
3transfer each month from the General Revenue Fund to the Local
4Government Distributive Fund an amount equal to the net of (i)
51/10 of the net revenue realized from the tax imposed by
6subsections (a) and (b) of Section 201 of the Illinois Income
7Tax Act during the preceding month (ii) minus, beginning July
81, 2003 and ending June 30, 2004, $6,666,666, and beginning
9July 1, 2004, zero. Beginning February 1, 2011, and continuing
10through January 31, 2015, the Treasurer shall transfer each
11month from the General Revenue Fund to the Local Government
12Distributive Fund an amount equal to the sum of (i) 6% (10% of
13the ratio of the 3% individual income tax rate prior to 2011 to
14the 5% individual income tax rate after 2010) of the net
15revenue realized from the tax imposed by subsections (a) and
16(b) of Section 201 of this Act upon individuals, trusts, and
17estates during the preceding month and (ii) 6.86% (10% of the
18ratio of the 4.8% corporate income tax rate prior to 2011 to
19the 7% corporate income tax rate after 2010) of the net revenue
20realized from the tax imposed by subsections (a) and (b) of
21Section 201 of this Act upon corporations during the preceding
22month. Beginning February 1, 2015 and continuing through July
2331, 2017, the Treasurer shall transfer each month from the
24General Revenue Fund to the Local Government Distributive Fund
25an amount equal to the sum of (i) 8% (10% of the ratio of the 3%
26individual income tax rate prior to 2011 to the 3.75%

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1individual income tax rate after 2014) of the net revenue
2realized from the tax imposed by subsections (a) and (b) of
3Section 201 of this Act upon individuals, trusts, and estates
4during the preceding month and (ii) 9.14% (10% of the ratio of
5the 4.8% corporate income tax rate prior to 2011 to the 5.25%
6corporate income tax rate after 2014) of the net revenue
7realized from the tax imposed by subsections (a) and (b) of
8Section 201 of this Act upon corporations during the preceding
9month. Beginning August 1, 2017, the Treasurer shall transfer
10each month from the General Revenue Fund to the Local
11Government Distributive Fund an amount equal to the sum of (i)
126.06% (10% of the ratio of the 3% individual income tax rate
13prior to 2011 to the 4.95% individual income tax rate after
14July 1, 2017) of the net revenue realized from the tax imposed
15by subsections (a) and (b) of Section 201 of this Act upon
16individuals, trusts, and estates during the preceding month and
17(ii) 6.85% (10% of the ratio of the 4.8% corporate income tax
18rate prior to 2011 to the 7% corporate income tax rate after
19July 1, 2017) of the net revenue realized from the tax imposed
20by subsections (a) and (b) of Section 201 of this Act upon
21corporations during the preceding month. Net revenue realized
22for a month shall be defined as the revenue from the tax
23imposed by subsections (a) and (b) of Section 201 of this Act
24which is deposited in the General Revenue Fund, the Education
25Assistance Fund, the Income Tax Surcharge Local Government
26Distributive Fund, the Fund for the Advancement of Education,

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1and the Commitment to Human Services Fund during the month
2minus the amount paid out of the General Revenue Fund in State
3warrants during that same month as refunds to taxpayers for
4overpayment of liability under the tax imposed by subsections
5(a) and (b) of Section 201 of this Act.
6 Notwithstanding any provision of law to the contrary,
7beginning on July 6, 2017 (the effective date of Public Act
8100-23) this amendatory Act of the 100th General Assembly,
9those amounts required under this subsection (b) to be
10transferred by the Treasurer into the Local Government
11Distributive Fund from the General Revenue Fund shall be
12directly deposited into the Local Government Distributive Fund
13as the revenue is realized from the tax imposed by subsections
14(a) and (b) of Section 201 of this Act.
15 For State fiscal year 2018 only, notwithstanding any
16provision of law to the contrary, the total amount of revenue
17and deposits under this Section attributable to revenues
18realized during State fiscal year 2018 shall be reduced by 10%.
19 (c) Deposits Into Income Tax Refund Fund.
20 (1) Beginning on January 1, 1989 and thereafter, the
21 Department shall deposit a percentage of the amounts
22 collected pursuant to subsections (a) and (b)(1), (2), and
23 (3), of Section 201 of this Act into a fund in the State
24 treasury known as the Income Tax Refund Fund. The
25 Department shall deposit 6% of such amounts during the
26 period beginning January 1, 1989 and ending on June 30,

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1 1989. Beginning with State fiscal year 1990 and for each
2 fiscal year thereafter, the percentage deposited into the
3 Income Tax Refund Fund during a fiscal year shall be the
4 Annual Percentage. For fiscal years 1999 through 2001, the
5 Annual Percentage shall be 7.1%. For fiscal year 2003, the
6 Annual Percentage shall be 8%. For fiscal year 2004, the
7 Annual Percentage shall be 11.7%. Upon the effective date
8 of Public Act 93-839 (July 30, 2004) this amendatory Act of
9 the 93rd General Assembly, the Annual Percentage shall be
10 10% for fiscal year 2005. For fiscal year 2006, the Annual
11 Percentage shall be 9.75%. For fiscal year 2007, the Annual
12 Percentage shall be 9.75%. For fiscal year 2008, the Annual
13 Percentage shall be 7.75%. For fiscal year 2009, the Annual
14 Percentage shall be 9.75%. For fiscal year 2010, the Annual
15 Percentage shall be 9.75%. For fiscal year 2011, the Annual
16 Percentage shall be 8.75%. For fiscal year 2012, the Annual
17 Percentage shall be 8.75%. For fiscal year 2013, the Annual
18 Percentage shall be 9.75%. For fiscal year 2014, the Annual
19 Percentage shall be 9.5%. For fiscal year 2015, the Annual
20 Percentage shall be 10%. For fiscal year 2018, the Annual
21 Percentage shall be 9.8%. For all other fiscal years, the
22 Annual Percentage shall be calculated as a fraction, the
23 numerator of which shall be the amount of refunds approved
24 for payment by the Department during the preceding fiscal
25 year as a result of overpayment of tax liability under
26 subsections (a) and (b)(1), (2), and (3) of Section 201 of

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1 this Act plus the amount of such refunds remaining approved
2 but unpaid at the end of the preceding fiscal year, minus
3 the amounts transferred into the Income Tax Refund Fund
4 from the Tobacco Settlement Recovery Fund, and the
5 denominator of which shall be the amounts which will be
6 collected pursuant to subsections (a) and (b)(1), (2), and
7 (3) of Section 201 of this Act during the preceding fiscal
8 year; except that in State fiscal year 2002, the Annual
9 Percentage shall in no event exceed 7.6%. The Director of
10 Revenue shall certify the Annual Percentage to the
11 Comptroller on the last business day of the fiscal year
12 immediately preceding the fiscal year for which it is to be
13 effective.
14 (2) Beginning on January 1, 1989 and thereafter, the
15 Department shall deposit a percentage of the amounts
16 collected pursuant to subsections (a) and (b)(6), (7), and
17 (8), (c) and (d) of Section 201 of this Act into a fund in
18 the State treasury known as the Income Tax Refund Fund. The
19 Department shall deposit 18% of such amounts during the
20 period beginning January 1, 1989 and ending on June 30,
21 1989. Beginning with State fiscal year 1990 and for each
22 fiscal year thereafter, the percentage deposited into the
23 Income Tax Refund Fund during a fiscal year shall be the
24 Annual Percentage. For fiscal years 1999, 2000, and 2001,
25 the Annual Percentage shall be 19%. For fiscal year 2003,
26 the Annual Percentage shall be 27%. For fiscal year 2004,

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1 the Annual Percentage shall be 32%. Upon the effective date
2 of Public Act 93-839 (July 30, 2004) this amendatory Act of
3 the 93rd General Assembly, the Annual Percentage shall be
4 24% for fiscal year 2005. For fiscal year 2006, the Annual
5 Percentage shall be 20%. For fiscal year 2007, the Annual
6 Percentage shall be 17.5%. For fiscal year 2008, the Annual
7 Percentage shall be 15.5%. For fiscal year 2009, the Annual
8 Percentage shall be 17.5%. For fiscal year 2010, the Annual
9 Percentage shall be 17.5%. For fiscal year 2011, the Annual
10 Percentage shall be 17.5%. For fiscal year 2012, the Annual
11 Percentage shall be 17.5%. For fiscal year 2013, the Annual
12 Percentage shall be 14%. For fiscal year 2014, the Annual
13 Percentage shall be 13.4%. For fiscal year 2015, the Annual
14 Percentage shall be 14%. For fiscal year 2018, the Annual
15 Percentage shall be 17.5%. For all other fiscal years, the
16 Annual Percentage shall be calculated as a fraction, the
17 numerator of which shall be the amount of refunds approved
18 for payment by the Department during the preceding fiscal
19 year as a result of overpayment of tax liability under
20 subsections (a) and (b)(6), (7), and (8), (c) and (d) of
21 Section 201 of this Act plus the amount of such refunds
22 remaining approved but unpaid at the end of the preceding
23 fiscal year, and the denominator of which shall be the
24 amounts which will be collected pursuant to subsections (a)
25 and (b)(6), (7), and (8), (c) and (d) of Section 201 of
26 this Act during the preceding fiscal year; except that in

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1 State fiscal year 2002, the Annual Percentage shall in no
2 event exceed 23%. The Director of Revenue shall certify the
3 Annual Percentage to the Comptroller on the last business
4 day of the fiscal year immediately preceding the fiscal
5 year for which it is to be effective.
6 (3) The Comptroller shall order transferred and the
7 Treasurer shall transfer from the Tobacco Settlement
8 Recovery Fund to the Income Tax Refund Fund (i) $35,000,000
9 in January, 2001, (ii) $35,000,000 in January, 2002, and
10 (iii) $35,000,000 in January, 2003.
11 (d) Expenditures from Income Tax Refund Fund.
12 (1) Beginning January 1, 1989, money in the Income Tax
13 Refund Fund shall be expended exclusively for the purpose
14 of paying refunds resulting from overpayment of tax
15 liability under Section 201 of this Act, for paying rebates
16 under Section 208.1 in the event that the amounts in the
17 Homeowners' Tax Relief Fund are insufficient for that
18 purpose, and for making transfers pursuant to this
19 subsection (d).
20 (2) The Director shall order payment of refunds
21 resulting from overpayment of tax liability under Section
22 201 of this Act from the Income Tax Refund Fund only to the
23 extent that amounts collected pursuant to Section 201 of
24 this Act and transfers pursuant to this subsection (d) and
25 item (3) of subsection (c) have been deposited and retained
26 in the Fund.

SB3445 Enrolled- 21 -LRB100 20331 HLH 35618 b
1 (3) As soon as possible after the end of each fiscal
2 year, the Director shall order transferred and the State
3 Treasurer and State Comptroller shall transfer from the
4 Income Tax Refund Fund to the Personal Property Tax
5 Replacement Fund an amount, certified by the Director to
6 the Comptroller, equal to the excess of the amount
7 collected pursuant to subsections (c) and (d) of Section
8 201 of this Act deposited into the Income Tax Refund Fund
9 during the fiscal year over the amount of refunds resulting
10 from overpayment of tax liability under subsections (c) and
11 (d) of Section 201 of this Act paid from the Income Tax
12 Refund Fund during the fiscal year.
13 (4) As soon as possible after the end of each fiscal
14 year, the Director shall order transferred and the State
15 Treasurer and State Comptroller shall transfer from the
16 Personal Property Tax Replacement Fund to the Income Tax
17 Refund Fund an amount, certified by the Director to the
18 Comptroller, equal to the excess of the amount of refunds
19 resulting from overpayment of tax liability under
20 subsections (c) and (d) of Section 201 of this Act paid
21 from the Income Tax Refund Fund during the fiscal year over
22 the amount collected pursuant to subsections (c) and (d) of
23 Section 201 of this Act deposited into the Income Tax
24 Refund Fund during the fiscal year.
25 (4.5) As soon as possible after the end of fiscal year
26 1999 and of each fiscal year thereafter, the Director shall

SB3445 Enrolled- 22 -LRB100 20331 HLH 35618 b
1 order transferred and the State Treasurer and State
2 Comptroller shall transfer from the Income Tax Refund Fund
3 to the General Revenue Fund any surplus remaining in the
4 Income Tax Refund Fund as of the end of such fiscal year;
5 excluding for fiscal years 2000, 2001, and 2002 amounts
6 attributable to transfers under item (3) of subsection (c)
7 less refunds resulting from the earned income tax credit.
8 (5) This Act shall constitute an irrevocable and
9 continuing appropriation from the Income Tax Refund Fund
10 for the purpose of paying refunds upon the order of the
11 Director in accordance with the provisions of this Section.
12 (e) Deposits into the Education Assistance Fund and the
13Income Tax Surcharge Local Government Distributive Fund. On
14July 1, 1991, and thereafter, of the amounts collected pursuant
15to subsections (a) and (b) of Section 201 of this Act, minus
16deposits into the Income Tax Refund Fund, the Department shall
17deposit 7.3% into the Education Assistance Fund in the State
18Treasury. Beginning July 1, 1991, and continuing through
19January 31, 1993, of the amounts collected pursuant to
20subsections (a) and (b) of Section 201 of the Illinois Income
21Tax Act, minus deposits into the Income Tax Refund Fund, the
22Department shall deposit 3.0% into the Income Tax Surcharge
23Local Government Distributive Fund in the State Treasury.
24Beginning February 1, 1993 and continuing through June 30,
251993, of the amounts collected pursuant to subsections (a) and
26(b) of Section 201 of the Illinois Income Tax Act, minus

SB3445 Enrolled- 23 -LRB100 20331 HLH 35618 b
1deposits into the Income Tax Refund Fund, the Department shall
2deposit 4.4% into the Income Tax Surcharge Local Government
3Distributive Fund in the State Treasury. Beginning July 1,
41993, and continuing through June 30, 1994, of the amounts
5collected under subsections (a) and (b) of Section 201 of this
6Act, minus deposits into the Income Tax Refund Fund, the
7Department shall deposit 1.475% into the Income Tax Surcharge
8Local Government Distributive Fund in the State Treasury.
9 (f) Deposits into the Fund for the Advancement of
10Education. Beginning February 1, 2015, the Department shall
11deposit the following portions of the revenue realized from the
12tax imposed upon individuals, trusts, and estates by
13subsections (a) and (b) of Section 201 of this Act during the
14preceding month, minus deposits into the Income Tax Refund
15Fund, into the Fund for the Advancement of Education:
16 (1) beginning February 1, 2015, and prior to February
17 1, 2025, 1/30; and
18 (2) beginning February 1, 2025, 1/26.
19 If the rate of tax imposed by subsection (a) and (b) of
20Section 201 is reduced pursuant to Section 201.5 of this Act,
21the Department shall not make the deposits required by this
22subsection (f) on or after the effective date of the reduction.
23 (g) Deposits into the Commitment to Human Services Fund.
24Beginning February 1, 2015, the Department shall deposit the
25following portions of the revenue realized from the tax imposed
26upon individuals, trusts, and estates by subsections (a) and

SB3445 Enrolled- 24 -LRB100 20331 HLH 35618 b
1(b) of Section 201 of this Act during the preceding month,
2minus deposits into the Income Tax Refund Fund, into the
3Commitment to Human Services Fund:
4 (1) beginning February 1, 2015, and prior to February
5 1, 2025, 1/30; and
6 (2) beginning February 1, 2025, 1/26.
7 If the rate of tax imposed by subsection (a) and (b) of
8Section 201 is reduced pursuant to Section 201.5 of this Act,
9the Department shall not make the deposits required by this
10subsection (g) on or after the effective date of the reduction.
11 (h) Deposits into the Tax Compliance and Administration
12Fund. Beginning on the first day of the first calendar month to
13occur on or after August 26, 2014 (the effective date of Public
14Act 98-1098), each month the Department shall pay into the Tax
15Compliance and Administration Fund, to be used, subject to
16appropriation, to fund additional auditors and compliance
17personnel at the Department, an amount equal to 1/12 of 5% of
18the cash receipts collected during the preceding fiscal year by
19the Audit Bureau of the Department from the tax imposed by
20subsections (a), (b), (c), and (d) of Section 201 of this Act,
21net of deposits into the Income Tax Refund Fund made from those
22cash receipts.
23(Source: P.A. 99-78, eff. 7-20-15; 100-22, eff. 7-6-17; 100-23,
24eff. 7-6-17; revised 8-3-17.)
25 Section 30. The Use Tax Act is amended by changing Sections

SB3445 Enrolled- 25 -LRB100 20331 HLH 35618 b
13-5, 3-5.5, 9, and 10 as follows:
2 (35 ILCS 105/3-5)
3 Sec. 3-5. Exemptions. Use of the following tangible
4personal property is exempt from the tax imposed by this Act:
5 (1) Personal property purchased from a corporation,
6society, association, foundation, institution, or
7organization, other than a limited liability company, that is
8organized and operated as a not-for-profit service enterprise
9for the benefit of persons 65 years of age or older if the
10personal property was not purchased by the enterprise for the
11purpose of resale by the enterprise.
12 (2) Personal property purchased by a not-for-profit
13Illinois county fair association for use in conducting,
14operating, or promoting the county fair.
15 (3) Personal property purchased by a not-for-profit arts or
16cultural organization that establishes, by proof required by
17the Department by rule, that it has received an exemption under
18Section 501(c)(3) of the Internal Revenue Code and that is
19organized and operated primarily for the presentation or
20support of arts or cultural programming, activities, or
21services. These organizations include, but are not limited to,
22music and dramatic arts organizations such as symphony
23orchestras and theatrical groups, arts and cultural service
24organizations, local arts councils, visual arts organizations,
25and media arts organizations. On and after July 1, 2001 (the

SB3445 Enrolled- 26 -LRB100 20331 HLH 35618 b
1effective date of Public Act 92-35) this amendatory Act of the
292nd General Assembly, however, an entity otherwise eligible
3for this exemption shall not make tax-free purchases unless it
4has an active identification number issued by the Department.
5 (4) Personal property purchased by a governmental body, by
6a corporation, society, association, foundation, or
7institution organized and operated exclusively for charitable,
8religious, or educational purposes, or by a not-for-profit
9corporation, society, association, foundation, institution, or
10organization that has no compensated officers or employees and
11that is organized and operated primarily for the recreation of
12persons 55 years of age or older. A limited liability company
13may qualify for the exemption under this paragraph only if the
14limited liability company is organized and operated
15exclusively for educational purposes. On and after July 1,
161987, however, no entity otherwise eligible for this exemption
17shall make tax-free purchases unless it has an active exemption
18identification number issued by the Department.
19 (5) Until July 1, 2003, a passenger car that is a
20replacement vehicle to the extent that the purchase price of
21the car is subject to the Replacement Vehicle Tax.
22 (6) Until July 1, 2003 and beginning again on September 1,
232004 through August 30, 2014, graphic arts machinery and
24equipment, including repair and replacement parts, both new and
25used, and including that manufactured on special order,
26certified by the purchaser to be used primarily for graphic

SB3445 Enrolled- 27 -LRB100 20331 HLH 35618 b
1arts production, and including machinery and equipment
2purchased for lease. Equipment includes chemicals or chemicals
3acting as catalysts but only if the chemicals or chemicals
4acting as catalysts effect a direct and immediate change upon a
5graphic arts product. Beginning on July 1, 2017, graphic arts
6machinery and equipment is included in the manufacturing and
7assembling machinery and equipment exemption under paragraph
8(18).
9 (7) Farm chemicals.
10 (8) Legal tender, currency, medallions, or gold or silver
11coinage issued by the State of Illinois, the government of the
12United States of America, or the government of any foreign
13country, and bullion.
14 (9) Personal property purchased from a teacher-sponsored
15student organization affiliated with an elementary or
16secondary school located in Illinois.
17 (10) A motor vehicle that is used for automobile renting,
18as defined in the Automobile Renting Occupation and Use Tax
19Act.
20 (11) Farm machinery and equipment, both new and used,
21including that manufactured on special order, certified by the
22purchaser to be used primarily for production agriculture or
23State or federal agricultural programs, including individual
24replacement parts for the machinery and equipment, including
25machinery and equipment purchased for lease, and including
26implements of husbandry defined in Section 1-130 of the

SB3445 Enrolled- 28 -LRB100 20331 HLH 35618 b
1Illinois Vehicle Code, farm machinery and agricultural
2chemical and fertilizer spreaders, and nurse wagons required to
3be registered under Section 3-809 of the Illinois Vehicle Code,
4but excluding other motor vehicles required to be registered
5under the Illinois Vehicle Code. Horticultural polyhouses or
6hoop houses used for propagating, growing, or overwintering
7plants shall be considered farm machinery and equipment under
8this item (11). Agricultural chemical tender tanks and dry
9boxes shall include units sold separately from a motor vehicle
10required to be licensed and units sold mounted on a motor
11vehicle required to be licensed if the selling price of the
12tender is separately stated.
13 Farm machinery and equipment shall include precision
14farming equipment that is installed or purchased to be
15installed on farm machinery and equipment including, but not
16limited to, tractors, harvesters, sprayers, planters, seeders,
17or spreaders. Precision farming equipment includes, but is not
18limited to, soil testing sensors, computers, monitors,
19software, global positioning and mapping systems, and other
20such equipment.
21 Farm machinery and equipment also includes computers,
22sensors, software, and related equipment used primarily in the
23computer-assisted operation of production agriculture
24facilities, equipment, and activities such as, but not limited
25to, the collection, monitoring, and correlation of animal and
26crop data for the purpose of formulating animal diets and

SB3445 Enrolled- 29 -LRB100 20331 HLH 35618 b
1agricultural chemicals. This item (11) is exempt from the
2provisions of Section 3-90.
3 (12) Until June 30, 2013, fuel and petroleum products sold
4to or used by an air common carrier, certified by the carrier
5to be used for consumption, shipment, or storage in the conduct
6of its business as an air common carrier, for a flight destined
7for or returning from a location or locations outside the
8United States without regard to previous or subsequent domestic
9stopovers.
10 Beginning July 1, 2013, fuel and petroleum products sold to
11or used by an air carrier, certified by the carrier to be used
12for consumption, shipment, or storage in the conduct of its
13business as an air common carrier, for a flight that (i) is
14engaged in foreign trade or is engaged in trade between the
15United States and any of its possessions and (ii) transports at
16least one individual or package for hire from the city of
17origination to the city of final destination on the same
18aircraft, without regard to a change in the flight number of
19that aircraft.
20 (13) Proceeds of mandatory service charges separately
21stated on customers' bills for the purchase and consumption of
22food and beverages purchased at retail from a retailer, to the
23extent that the proceeds of the service charge are in fact
24turned over as tips or as a substitute for tips to the
25employees who participate directly in preparing, serving,
26hosting or cleaning up the food or beverage function with

SB3445 Enrolled- 30 -LRB100 20331 HLH 35618 b
1respect to which the service charge is imposed.
2 (14) Until July 1, 2003, oil field exploration, drilling,
3and production equipment, including (i) rigs and parts of rigs,
4rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
5tubular goods, including casing and drill strings, (iii) pumps
6and pump-jack units, (iv) storage tanks and flow lines, (v) any
7individual replacement part for oil field exploration,
8drilling, and production equipment, and (vi) machinery and
9equipment purchased for lease; but excluding motor vehicles
10required to be registered under the Illinois Vehicle Code.
11 (15) Photoprocessing machinery and equipment, including
12repair and replacement parts, both new and used, including that
13manufactured on special order, certified by the purchaser to be
14used primarily for photoprocessing, and including
15photoprocessing machinery and equipment purchased for lease.
16 (16) Coal and aggregate exploration, mining, off-highway
17hauling, processing, maintenance, and reclamation equipment,
18including replacement parts and equipment, and including
19equipment purchased for lease, but excluding motor vehicles
20required to be registered under the Illinois Vehicle Code. The
21changes made to this Section by Public Act 97-767 apply on and
22after July 1, 2003, but no claim for credit or refund is
23allowed on or after August 16, 2013 (the effective date of
24Public Act 98-456) for such taxes paid during the period
25beginning July 1, 2003 and ending on August 16, 2013 (the
26effective date of Public Act 98-456).

SB3445 Enrolled- 31 -LRB100 20331 HLH 35618 b
1 (17) Until July 1, 2003, distillation machinery and
2equipment, sold as a unit or kit, assembled or installed by the
3retailer, certified by the user to be used only for the
4production of ethyl alcohol that will be used for consumption
5as motor fuel or as a component of motor fuel for the personal
6use of the user, and not subject to sale or resale.
7 (18) Manufacturing and assembling machinery and equipment
8used primarily in the process of manufacturing or assembling
9tangible personal property for wholesale or retail sale or
10lease, whether that sale or lease is made directly by the
11manufacturer or by some other person, whether the materials
12used in the process are owned by the manufacturer or some other
13person, or whether that sale or lease is made apart from or as
14an incident to the seller's engaging in the service occupation
15of producing machines, tools, dies, jigs, patterns, gauges, or
16other similar items of no commercial value on special order for
17a particular purchaser. The exemption provided by this
18paragraph (18) does not include machinery and equipment used in
19(i) the generation of electricity for wholesale or retail sale;
20(ii) the generation or treatment of natural or artificial gas
21for wholesale or retail sale that is delivered to customers
22through pipes, pipelines, or mains; or (iii) the treatment of
23water for wholesale or retail sale that is delivered to
24customers through pipes, pipelines, or mains. The provisions of
25Public Act 98-583 are declaratory of existing law as to the
26meaning and scope of this exemption. Beginning on July 1, 2017,

SB3445 Enrolled- 32 -LRB100 20331 HLH 35618 b
1the exemption provided by this paragraph (18) includes, but is
2not limited to, graphic arts machinery and equipment, as
3defined in paragraph (6) of this Section.
4 (19) Personal property delivered to a purchaser or
5purchaser's donee inside Illinois when the purchase order for
6that personal property was received by a florist located
7outside Illinois who has a florist located inside Illinois
8deliver the personal property.
9 (20) Semen used for artificial insemination of livestock
10for direct agricultural production.
11 (21) Horses, or interests in horses, registered with and
12meeting the requirements of any of the Arabian Horse Club
13Registry of America, Appaloosa Horse Club, American Quarter
14Horse Association, United States Trotting Association, or
15Jockey Club, as appropriate, used for purposes of breeding or
16racing for prizes. This item (21) is exempt from the provisions
17of Section 3-90, and the exemption provided for under this item
18(21) applies for all periods beginning May 30, 1995, but no
19claim for credit or refund is allowed on or after January 1,
202008 for such taxes paid during the period beginning May 30,
212000 and ending on January 1, 2008.
22 (22) Computers and communications equipment utilized for
23any hospital purpose and equipment used in the diagnosis,
24analysis, or treatment of hospital patients purchased by a
25lessor who leases the equipment, under a lease of one year or
26longer executed or in effect at the time the lessor would

SB3445 Enrolled- 33 -LRB100 20331 HLH 35618 b
1otherwise be subject to the tax imposed by this Act, to a
2hospital that has been issued an active tax exemption
3identification number by the Department under Section 1g of the
4Retailers' Occupation Tax Act. If the equipment is leased in a
5manner that does not qualify for this exemption or is used in
6any other non-exempt manner, the lessor shall be liable for the
7tax imposed under this Act or the Service Use Tax Act, as the
8case may be, based on the fair market value of the property at
9the time the non-qualifying use occurs. No lessor shall collect
10or attempt to collect an amount (however designated) that
11purports to reimburse that lessor for the tax imposed by this
12Act or the Service Use Tax Act, as the case may be, if the tax
13has not been paid by the lessor. If a lessor improperly
14collects any such amount from the lessee, the lessee shall have
15a legal right to claim a refund of that amount from the lessor.
16If, however, that amount is not refunded to the lessee for any
17reason, the lessor is liable to pay that amount to the
18Department.
19 (23) Personal property purchased by a lessor who leases the
20property, under a lease of one year or longer executed or in
21effect at the time the lessor would otherwise be subject to the
22tax imposed by this Act, to a governmental body that has been
23issued an active sales tax exemption identification number by
24the Department under Section 1g of the Retailers' Occupation
25Tax Act. If the property is leased in a manner that does not
26qualify for this exemption or used in any other non-exempt

SB3445 Enrolled- 34 -LRB100 20331 HLH 35618 b
1manner, the lessor shall be liable for the tax imposed under
2this Act or the Service Use Tax Act, as the case may be, based
3on the fair market value of the property at the time the
4non-qualifying use occurs. No lessor shall collect or attempt
5to collect an amount (however designated) that purports to
6reimburse that lessor for the tax imposed by this Act or the
7Service Use Tax Act, as the case may be, if the tax has not been
8paid by the lessor. If a lessor improperly collects any such
9amount from the lessee, the lessee shall have a legal right to
10claim a refund of that amount from the lessor. If, however,
11that amount is not refunded to the lessee for any reason, the
12lessor is liable to pay that amount to the Department.
13 (24) Beginning with taxable years ending on or after
14December 31, 1995 and ending with taxable years ending on or
15before December 31, 2004, personal property that is donated for
16disaster relief to be used in a State or federally declared
17disaster area in Illinois or bordering Illinois by a
18manufacturer or retailer that is registered in this State to a
19corporation, society, association, foundation, or institution
20that has been issued a sales tax exemption identification
21number by the Department that assists victims of the disaster
22who reside within the declared disaster area.
23 (25) Beginning with taxable years ending on or after
24December 31, 1995 and ending with taxable years ending on or
25before December 31, 2004, personal property that is used in the
26performance of infrastructure repairs in this State, including

SB3445 Enrolled- 35 -LRB100 20331 HLH 35618 b
1but not limited to municipal roads and streets, access roads,
2bridges, sidewalks, waste disposal systems, water and sewer
3line extensions, water distribution and purification
4facilities, storm water drainage and retention facilities, and
5sewage treatment facilities, resulting from a State or
6federally declared disaster in Illinois or bordering Illinois
7when such repairs are initiated on facilities located in the
8declared disaster area within 6 months after the disaster.
9 (26) Beginning July 1, 1999, game or game birds purchased
10at a "game breeding and hunting preserve area" as that term is
11used in the Wildlife Code. This paragraph is exempt from the
12provisions of Section 3-90.
13 (27) A motor vehicle, as that term is defined in Section
141-146 of the Illinois Vehicle Code, that is donated to a
15corporation, limited liability company, society, association,
16foundation, or institution that is determined by the Department
17to be organized and operated exclusively for educational
18purposes. For purposes of this exemption, "a corporation,
19limited liability company, society, association, foundation,
20or institution organized and operated exclusively for
21educational purposes" means all tax-supported public schools,
22private schools that offer systematic instruction in useful
23branches of learning by methods common to public schools and
24that compare favorably in their scope and intensity with the
25course of study presented in tax-supported schools, and
26vocational or technical schools or institutes organized and

SB3445 Enrolled- 36 -LRB100 20331 HLH 35618 b
1operated exclusively to provide a course of study of not less
2than 6 weeks duration and designed to prepare individuals to
3follow a trade or to pursue a manual, technical, mechanical,
4industrial, business, or commercial occupation.
5 (28) Beginning January 1, 2000, personal property,
6including food, purchased through fundraising events for the
7benefit of a public or private elementary or secondary school,
8a group of those schools, or one or more school districts if
9the events are sponsored by an entity recognized by the school
10district that consists primarily of volunteers and includes
11parents and teachers of the school children. This paragraph
12does not apply to fundraising events (i) for the benefit of
13private home instruction or (ii) for which the fundraising
14entity purchases the personal property sold at the events from
15another individual or entity that sold the property for the
16purpose of resale by the fundraising entity and that profits
17from the sale to the fundraising entity. This paragraph is
18exempt from the provisions of Section 3-90.
19 (29) Beginning January 1, 2000 and through December 31,
202001, new or used automatic vending machines that prepare and
21serve hot food and beverages, including coffee, soup, and other
22items, and replacement parts for these machines. Beginning
23January 1, 2002 and through June 30, 2003, machines and parts
24for machines used in commercial, coin-operated amusement and
25vending business if a use or occupation tax is paid on the
26gross receipts derived from the use of the commercial,

SB3445 Enrolled- 37 -LRB100 20331 HLH 35618 b
1coin-operated amusement and vending machines. This paragraph
2is exempt from the provisions of Section 3-90.
3 (30) Beginning January 1, 2001 and through June 30, 2016,
4food for human consumption that is to be consumed off the
5premises where it is sold (other than alcoholic beverages, soft
6drinks, and food that has been prepared for immediate
7consumption) and prescription and nonprescription medicines,
8drugs, medical appliances, and insulin, urine testing
9materials, syringes, and needles used by diabetics, for human
10use, when purchased for use by a person receiving medical
11assistance under Article V of the Illinois Public Aid Code who
12resides in a licensed long-term care facility, as defined in
13the Nursing Home Care Act, or in a licensed facility as defined
14in the ID/DD Community Care Act, the MC/DD Act, or the
15Specialized Mental Health Rehabilitation Act of 2013.
16 (31) Beginning on August 2, 2001 (the effective date of
17Public Act 92-227) this amendatory Act of the 92nd General
18Assembly, computers and communications equipment utilized for
19any hospital purpose and equipment used in the diagnosis,
20analysis, or treatment of hospital patients purchased by a
21lessor who leases the equipment, under a lease of one year or
22longer executed or in effect at the time the lessor would
23otherwise be subject to the tax imposed by this Act, to a
24hospital that has been issued an active tax exemption
25identification number by the Department under Section 1g of the
26Retailers' Occupation Tax Act. If the equipment is leased in a

SB3445 Enrolled- 38 -LRB100 20331 HLH 35618 b
1manner that does not qualify for this exemption or is used in
2any other nonexempt manner, the lessor shall be liable for the
3tax imposed under this Act or the Service Use Tax Act, as the
4case may be, based on the fair market value of the property at
5the time the nonqualifying use occurs. No lessor shall collect
6or attempt to collect an amount (however designated) that
7purports to reimburse that lessor for the tax imposed by this
8Act or the Service Use Tax Act, as the case may be, if the tax
9has not been paid by the lessor. If a lessor improperly
10collects any such amount from the lessee, the lessee shall have
11a legal right to claim a refund of that amount from the lessor.
12If, however, that amount is not refunded to the lessee for any
13reason, the lessor is liable to pay that amount to the
14Department. This paragraph is exempt from the provisions of
15Section 3-90.
16 (32) Beginning on August 2, 2001 (the effective date of
17Public Act 92-227) this amendatory Act of the 92nd General
18Assembly, personal property purchased by a lessor who leases
19the property, under a lease of one year or longer executed or
20in effect at the time the lessor would otherwise be subject to
21the tax imposed by this Act, to a governmental body that has
22been issued an active sales tax exemption identification number
23by the Department under Section 1g of the Retailers' Occupation
24Tax Act. If the property is leased in a manner that does not
25qualify for this exemption or used in any other nonexempt
26manner, the lessor shall be liable for the tax imposed under

SB3445 Enrolled- 39 -LRB100 20331 HLH 35618 b
1this Act or the Service Use Tax Act, as the case may be, based
2on the fair market value of the property at the time the
3nonqualifying use occurs. No lessor shall collect or attempt to
4collect an amount (however designated) that purports to
5reimburse that lessor for the tax imposed by this Act or the
6Service Use Tax Act, as the case may be, if the tax has not been
7paid by the lessor. If a lessor improperly collects any such
8amount from the lessee, the lessee shall have a legal right to
9claim a refund of that amount from the lessor. If, however,
10that amount is not refunded to the lessee for any reason, the
11lessor is liable to pay that amount to the Department. This
12paragraph is exempt from the provisions of Section 3-90.
13 (33) On and after July 1, 2003 and through June 30, 2004,
14the use in this State of motor vehicles of the second division
15with a gross vehicle weight in excess of 8,000 pounds and that
16are subject to the commercial distribution fee imposed under
17Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
181, 2004 and through June 30, 2005, the use in this State of
19motor vehicles of the second division: (i) with a gross vehicle
20weight rating in excess of 8,000 pounds; (ii) that are subject
21to the commercial distribution fee imposed under Section
223-815.1 of the Illinois Vehicle Code; and (iii) that are
23primarily used for commercial purposes. Through June 30, 2005,
24this exemption applies to repair and replacement parts added
25after the initial purchase of such a motor vehicle if that
26motor vehicle is used in a manner that would qualify for the

SB3445 Enrolled- 40 -LRB100 20331 HLH 35618 b
1rolling stock exemption otherwise provided for in this Act. For
2purposes of this paragraph, the term "used for commercial
3purposes" means the transportation of persons or property in
4furtherance of any commercial or industrial enterprise,
5whether for-hire or not.
6 (34) Beginning January 1, 2008, tangible personal property
7used in the construction or maintenance of a community water
8supply, as defined under Section 3.145 of the Environmental
9Protection Act, that is operated by a not-for-profit
10corporation that holds a valid water supply permit issued under
11Title IV of the Environmental Protection Act. This paragraph is
12exempt from the provisions of Section 3-90.
13 (35) Beginning January 1, 2010, materials, parts,
14equipment, components, and furnishings incorporated into or
15upon an aircraft as part of the modification, refurbishment,
16completion, replacement, repair, or maintenance of the
17aircraft. This exemption includes consumable supplies used in
18the modification, refurbishment, completion, replacement,
19repair, and maintenance of aircraft, but excludes any
20materials, parts, equipment, components, and consumable
21supplies used in the modification, replacement, repair, and
22maintenance of aircraft engines or power plants, whether such
23engines or power plants are installed or uninstalled upon any
24such aircraft. "Consumable supplies" include, but are not
25limited to, adhesive, tape, sandpaper, general purpose
26lubricants, cleaning solution, latex gloves, and protective

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1films. This exemption applies only to the use of qualifying
2tangible personal property by persons who modify, refurbish,
3complete, repair, replace, or maintain aircraft and who (i)
4hold an Air Agency Certificate and are empowered to operate an
5approved repair station by the Federal Aviation
6Administration, (ii) have a Class IV Rating, and (iii) conduct
7operations in accordance with Part 145 of the Federal Aviation
8Regulations. The exemption does not include aircraft operated
9by a commercial air carrier providing scheduled passenger air
10service pursuant to authority issued under Part 121 or Part 129
11of the Federal Aviation Regulations. The changes made to this
12paragraph (35) by Public Act 98-534 are declarative of existing
13law.
14 (36) Tangible personal property purchased by a
15public-facilities corporation, as described in Section
1611-65-10 of the Illinois Municipal Code, for purposes of
17constructing or furnishing a municipal convention hall, but
18only if the legal title to the municipal convention hall is
19transferred to the municipality without any further
20consideration by or on behalf of the municipality at the time
21of the completion of the municipal convention hall or upon the
22retirement or redemption of any bonds or other debt instruments
23issued by the public-facilities corporation in connection with
24the development of the municipal convention hall. This
25exemption includes existing public-facilities corporations as
26provided in Section 11-65-25 of the Illinois Municipal Code.

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1This paragraph is exempt from the provisions of Section 3-90.
2 (37) Beginning January 1, 2017, menstrual pads, tampons,
3and menstrual cups.
4 (38) Merchandise that is subject to the Rental Purchase
5Agreement Occupation and Use Tax. The purchaser must certify
6that the item is purchased to be rented subject to a rental
7purchase agreement, as defined in the Rental Purchase Agreement
8Act, and provide proof of registration under the Rental
9Purchase Agreement Occupation and Use Tax Act. This paragraph
10is exempt from the provisions of Section 3-90.
11 (39) Tangible personal property purchased by a purchaser
12who is exempt from the tax imposed by this Act by operation of
13federal law. This paragraph is exempt from the provisions of
14Section 3-90.
15(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
16100-22, eff. 7-6-17; 100-437, eff. 1-1-18; revised 9-27-17.)
17 (35 ILCS 105/3-5.5)
18 Sec. 3-5.5. Food and drugs sold by not-for-profit
19organizations; exemption. The Department shall not collect the
201% tax imposed under this Act on food for human consumption
21that is to be consumed off the premises where it is sold (other
22than alcoholic beverages, soft drinks, and food that has been
23prepared for immediate consumption) and prescription and
24nonprescription medicines, drugs, medical appliances, and
25insulin, urine testing materials, syringes, and needles used by

SB3445 Enrolled- 43 -LRB100 20331 HLH 35618 b
1diabetics, for human use from any not-for-profit organization,
2that sells food in a food distribution program at a price below
3the retail cost of the food to purchasers who, as a condition
4of participation in the program, are required to perform
5community service, located in a county or municipality that
6notifies the Department, in writing, that the county or
7municipality does not want the tax to be collected from any of
8such organizations located in the county or municipality.
9(Source: P.A. 88-374.)
10 (35 ILCS 105/9) (from Ch. 120, par. 439.9)
11 (Text of Section before amendment by P.A. 100-363)
12 Sec. 9. Except as to motor vehicles, watercraft, aircraft,
13and trailers that are required to be registered with an agency
14of this State, each retailer required or authorized to collect
15the tax imposed by this Act shall pay to the Department the
16amount of such tax (except as otherwise provided) at the time
17when he is required to file his return for the period during
18which such tax was collected, less a discount of 2.1% prior to
19January 1, 1990, and 1.75% on and after January 1, 1990, or $5
20per calendar year, whichever is greater, which is allowed to
21reimburse the retailer for expenses incurred in collecting the
22tax, keeping records, preparing and filing returns, remitting
23the tax and supplying data to the Department on request. In the
24case of retailers who report and pay the tax on a transaction
25by transaction basis, as provided in this Section, such

SB3445 Enrolled- 44 -LRB100 20331 HLH 35618 b
1discount shall be taken with each such tax remittance instead
2of when such retailer files his periodic return. The discount
3allowed under this Section is allowed only for returns that are
4filed in the manner required by this Act. The Department may
5disallow the discount for retailers whose certificate of
6registration is revoked at the time the return is filed, but
7only if the Department's decision to revoke the certificate of
8registration has become final. A retailer need not remit that
9part of any tax collected by him to the extent that he is
10required to remit and does remit the tax imposed by the
11Retailers' Occupation Tax Act, with respect to the sale of the
12same property.
13 Where such tangible personal property is sold under a
14conditional sales contract, or under any other form of sale
15wherein the payment of the principal sum, or a part thereof, is
16extended beyond the close of the period for which the return is
17filed, the retailer, in collecting the tax (except as to motor
18vehicles, watercraft, aircraft, and trailers that are required
19to be registered with an agency of this State), may collect for
20each tax return period, only the tax applicable to that part of
21the selling price actually received during such tax return
22period.
23 Except as provided in this Section, on or before the
24twentieth day of each calendar month, such retailer shall file
25a return for the preceding calendar month. Such return shall be
26filed on forms prescribed by the Department and shall furnish

SB3445 Enrolled- 45 -LRB100 20331 HLH 35618 b
1such information as the Department may reasonably require. On
2and after January 1, 2018, except for returns for motor
3vehicles, watercraft, aircraft, and trailers that are required
4to be registered with an agency of this State, with respect to
5retailers whose annual gross receipts average $20,000 or more,
6all returns required to be filed pursuant to this Act shall be
7filed electronically. Retailers who demonstrate that they do
8not have access to the Internet or demonstrate hardship in
9filing electronically may petition the Department to waive the
10electronic filing requirement.
11 The Department may require returns to be filed on a
12quarterly basis. If so required, a return for each calendar
13quarter shall be filed on or before the twentieth day of the
14calendar month following the end of such calendar quarter. The
15taxpayer shall also file a return with the Department for each
16of the first two months of each calendar quarter, on or before
17the twentieth day of the following calendar month, stating:
18 1. The name of the seller;
19 2. The address of the principal place of business from
20 which he engages in the business of selling tangible
21 personal property at retail in this State;
22 3. The total amount of taxable receipts received by him
23 during the preceding calendar month from sales of tangible
24 personal property by him during such preceding calendar
25 month, including receipts from charge and time sales, but
26 less all deductions allowed by law;

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1 4. The amount of credit provided in Section 2d of this
2 Act;
3 5. The amount of tax due;
4 5-5. The signature of the taxpayer; and
5 6. Such other reasonable information as the Department
6 may require.
7 If a taxpayer fails to sign a return within 30 days after
8the proper notice and demand for signature by the Department,
9the return shall be considered valid and any amount shown to be
10due on the return shall be deemed assessed.
11 Beginning October 1, 1993, a taxpayer who has an average
12monthly tax liability of $150,000 or more shall make all
13payments required by rules of the Department by electronic
14funds transfer. Beginning October 1, 1994, a taxpayer who has
15an average monthly tax liability of $100,000 or more shall make
16all payments required by rules of the Department by electronic
17funds transfer. Beginning October 1, 1995, a taxpayer who has
18an average monthly tax liability of $50,000 or more shall make
19all payments required by rules of the Department by electronic
20funds transfer. Beginning October 1, 2000, a taxpayer who has
21an annual tax liability of $200,000 or more shall make all
22payments required by rules of the Department by electronic
23funds transfer. The term "annual tax liability" shall be the
24sum of the taxpayer's liabilities under this Act, and under all
25other State and local occupation and use tax laws administered
26by the Department, for the immediately preceding calendar year.

SB3445 Enrolled- 47 -LRB100 20331 HLH 35618 b
1The term "average monthly tax liability" means the sum of the
2taxpayer's liabilities under this Act, and under all other
3State and local occupation and use tax laws administered by the
4Department, for the immediately preceding calendar year
5divided by 12. Beginning on October 1, 2002, a taxpayer who has
6a tax liability in the amount set forth in subsection (b) of
7Section 2505-210 of the Department of Revenue Law shall make
8all payments required by rules of the Department by electronic
9funds transfer.
10 Before August 1 of each year beginning in 1993, the
11Department shall notify all taxpayers required to make payments
12by electronic funds transfer. All taxpayers required to make
13payments by electronic funds transfer shall make those payments
14for a minimum of one year beginning on October 1.
15 Any taxpayer not required to make payments by electronic
16funds transfer may make payments by electronic funds transfer
17with the permission of the Department.
18 All taxpayers required to make payment by electronic funds
19transfer and any taxpayers authorized to voluntarily make
20payments by electronic funds transfer shall make those payments
21in the manner authorized by the Department.
22 The Department shall adopt such rules as are necessary to
23effectuate a program of electronic funds transfer and the
24requirements of this Section.
25 Before October 1, 2000, if the taxpayer's average monthly
26tax liability to the Department under this Act, the Retailers'

SB3445 Enrolled- 48 -LRB100 20331 HLH 35618 b
1Occupation Tax Act, the Service Occupation Tax Act, the Service
2Use Tax Act was $10,000 or more during the preceding 4 complete
3calendar quarters, he shall file a return with the Department
4each month by the 20th day of the month next following the
5month during which such tax liability is incurred and shall
6make payments to the Department on or before the 7th, 15th,
722nd and last day of the month during which such liability is
8incurred. On and after October 1, 2000, if the taxpayer's
9average monthly tax liability to the Department under this Act,
10the Retailers' Occupation Tax Act, the Service Occupation Tax
11Act, and the Service Use Tax Act was $20,000 or more during the
12preceding 4 complete calendar quarters, he shall file a return
13with the Department each month by the 20th day of the month
14next following the month during which such tax liability is
15incurred and shall make payment to the Department on or before
16the 7th, 15th, 22nd and last day of the month during which such
17liability is incurred. If the month during which such tax
18liability is incurred began prior to January 1, 1985, each
19payment shall be in an amount equal to 1/4 of the taxpayer's
20actual liability for the month or an amount set by the
21Department not to exceed 1/4 of the average monthly liability
22of the taxpayer to the Department for the preceding 4 complete
23calendar quarters (excluding the month of highest liability and
24the month of lowest liability in such 4 quarter period). If the
25month during which such tax liability is incurred begins on or
26after January 1, 1985, and prior to January 1, 1987, each

SB3445 Enrolled- 49 -LRB100 20331 HLH 35618 b
1payment shall be in an amount equal to 22.5% of the taxpayer's
2actual liability for the month or 27.5% of the taxpayer's
3liability for the same calendar month of the preceding year. If
4the month during which such tax liability is incurred begins on
5or after January 1, 1987, and prior to January 1, 1988, each
6payment shall be in an amount equal to 22.5% of the taxpayer's
7actual liability for the month or 26.25% of the taxpayer's
8liability for the same calendar month of the preceding year. If
9the month during which such tax liability is incurred begins on
10or after January 1, 1988, and prior to January 1, 1989, or
11begins on or after January 1, 1996, each payment shall be in an
12amount equal to 22.5% of the taxpayer's actual liability for
13the month or 25% of the taxpayer's liability for the same
14calendar month of the preceding year. If the month during which
15such tax liability is incurred begins on or after January 1,
161989, and prior to January 1, 1996, each payment shall be in an
17amount equal to 22.5% of the taxpayer's actual liability for
18the month or 25% of the taxpayer's liability for the same
19calendar month of the preceding year or 100% of the taxpayer's
20actual liability for the quarter monthly reporting period. The
21amount of such quarter monthly payments shall be credited
22against the final tax liability of the taxpayer's return for
23that month. Before October 1, 2000, once applicable, the
24requirement of the making of quarter monthly payments to the
25Department shall continue until such taxpayer's average
26monthly liability to the Department during the preceding 4

SB3445 Enrolled- 50 -LRB100 20331 HLH 35618 b
1complete calendar quarters (excluding the month of highest
2liability and the month of lowest liability) is less than
3$9,000, or until such taxpayer's average monthly liability to
4the Department as computed for each calendar quarter of the 4
5preceding complete calendar quarter period is less than
6$10,000. However, if a taxpayer can show the Department that a
7substantial change in the taxpayer's business has occurred
8which causes the taxpayer to anticipate that his average
9monthly tax liability for the reasonably foreseeable future
10will fall below the $10,000 threshold stated above, then such
11taxpayer may petition the Department for change in such
12taxpayer's reporting status. On and after October 1, 2000, once
13applicable, the requirement of the making of quarter monthly
14payments to the Department shall continue until such taxpayer's
15average monthly liability to the Department during the
16preceding 4 complete calendar quarters (excluding the month of
17highest liability and the month of lowest liability) is less
18than $19,000 or until such taxpayer's average monthly liability
19to the Department as computed for each calendar quarter of the
204 preceding complete calendar quarter period is less than
21$20,000. However, if a taxpayer can show the Department that a
22substantial change in the taxpayer's business has occurred
23which causes the taxpayer to anticipate that his average
24monthly tax liability for the reasonably foreseeable future
25will fall below the $20,000 threshold stated above, then such
26taxpayer may petition the Department for a change in such

SB3445 Enrolled- 51 -LRB100 20331 HLH 35618 b
1taxpayer's reporting status. The Department shall change such
2taxpayer's reporting status unless it finds that such change is
3seasonal in nature and not likely to be long term. If any such
4quarter monthly payment is not paid at the time or in the
5amount required by this Section, then the taxpayer shall be
6liable for penalties and interest on the difference between the
7minimum amount due and the amount of such quarter monthly
8payment actually and timely paid, except insofar as the
9taxpayer has previously made payments for that month to the
10Department in excess of the minimum payments previously due as
11provided in this Section. The Department shall make reasonable
12rules and regulations to govern the quarter monthly payment
13amount and quarter monthly payment dates for taxpayers who file
14on other than a calendar monthly basis.
15 If any such payment provided for in this Section exceeds
16the taxpayer's liabilities under this Act, the Retailers'
17Occupation Tax Act, the Service Occupation Tax Act and the
18Service Use Tax Act, as shown by an original monthly return,
19the Department shall issue to the taxpayer a credit memorandum
20no later than 30 days after the date of payment, which
21memorandum may be submitted by the taxpayer to the Department
22in payment of tax liability subsequently to be remitted by the
23taxpayer to the Department or be assigned by the taxpayer to a
24similar taxpayer under this Act, the Retailers' Occupation Tax
25Act, the Service Occupation Tax Act or the Service Use Tax Act,
26in accordance with reasonable rules and regulations to be

SB3445 Enrolled- 52 -LRB100 20331 HLH 35618 b
1prescribed by the Department, except that if such excess
2payment is shown on an original monthly return and is made
3after December 31, 1986, no credit memorandum shall be issued,
4unless requested by the taxpayer. If no such request is made,
5the taxpayer may credit such excess payment against tax
6liability subsequently to be remitted by the taxpayer to the
7Department under this Act, the Retailers' Occupation Tax Act,
8the Service Occupation Tax Act or the Service Use Tax Act, in
9accordance with reasonable rules and regulations prescribed by
10the Department. If the Department subsequently determines that
11all or any part of the credit taken was not actually due to the
12taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
13be reduced by 2.1% or 1.75% of the difference between the
14credit taken and that actually due, and the taxpayer shall be
15liable for penalties and interest on such difference.
16 If the retailer is otherwise required to file a monthly
17return and if the retailer's average monthly tax liability to
18the Department does not exceed $200, the Department may
19authorize his returns to be filed on a quarter annual basis,
20with the return for January, February, and March of a given
21year being due by April 20 of such year; with the return for
22April, May and June of a given year being due by July 20 of such
23year; with the return for July, August and September of a given
24year being due by October 20 of such year, and with the return
25for October, November and December of a given year being due by
26January 20 of the following year.

SB3445 Enrolled- 53 -LRB100 20331 HLH 35618 b
1 If the retailer is otherwise required to file a monthly or
2quarterly return and if the retailer's average monthly tax
3liability to the Department does not exceed $50, the Department
4may authorize his returns to be filed on an annual basis, with
5the return for a given year being due by January 20 of the
6following year.
7 Such quarter annual and annual returns, as to form and
8substance, shall be subject to the same requirements as monthly
9returns.
10 Notwithstanding any other provision in this Act concerning
11the time within which a retailer may file his return, in the
12case of any retailer who ceases to engage in a kind of business
13which makes him responsible for filing returns under this Act,
14such retailer shall file a final return under this Act with the
15Department not more than one month after discontinuing such
16business.
17 In addition, with respect to motor vehicles, watercraft,
18aircraft, and trailers that are required to be registered with
19an agency of this State, except as otherwise provided in this
20Section, every retailer selling this kind of tangible personal
21property shall file, with the Department, upon a form to be
22prescribed and supplied by the Department, a separate return
23for each such item of tangible personal property which the
24retailer sells, except that if, in the same transaction, (i) a
25retailer of aircraft, watercraft, motor vehicles or trailers
26transfers more than one aircraft, watercraft, motor vehicle or

SB3445 Enrolled- 54 -LRB100 20331 HLH 35618 b
1trailer to another aircraft, watercraft, motor vehicle or
2trailer retailer for the purpose of resale or (ii) a retailer
3of aircraft, watercraft, motor vehicles, or trailers transfers
4more than one aircraft, watercraft, motor vehicle, or trailer
5to a purchaser for use as a qualifying rolling stock as
6provided in Section 3-55 of this Act, then that seller may
7report the transfer of all the aircraft, watercraft, motor
8vehicles or trailers involved in that transaction to the
9Department on the same uniform invoice-transaction reporting
10return form. For purposes of this Section, "watercraft" means a
11Class 2, Class 3, or Class 4 watercraft as defined in Section
123-2 of the Boat Registration and Safety Act, a personal
13watercraft, or any boat equipped with an inboard motor.
14 In addition, with respect to motor vehicles, watercraft,
15aircraft, and trailers that are required to be registered with
16an agency of this State, every person who is engaged in the
17business of leasing or renting such items and who, in
18connection with such business, sells any such item to a
19retailer for the purpose of resale is, notwithstanding any
20other provision of this Section to the contrary, authorized to
21meet the return-filing requirement of this Act by reporting the
22transfer of all the aircraft, watercraft, motor vehicles, or
23trailers transferred for resale during a month to the
24Department on the same uniform invoice-transaction reporting
25return form on or before the 20th of the month following the
26month in which the transfer takes place. Notwithstanding any

SB3445 Enrolled- 55 -LRB100 20331 HLH 35618 b
1other provision of this Act to the contrary, all returns filed
2under this paragraph must be filed by electronic means in the
3manner and form as required by the Department.
4 The transaction reporting return in the case of motor
5vehicles or trailers that are required to be registered with an
6agency of this State, shall be the same document as the Uniform
7Invoice referred to in Section 5-402 of the Illinois Vehicle
8Code and must show the name and address of the seller; the name
9and address of the purchaser; the amount of the selling price
10including the amount allowed by the retailer for traded-in
11property, if any; the amount allowed by the retailer for the
12traded-in tangible personal property, if any, to the extent to
13which Section 2 of this Act allows an exemption for the value
14of traded-in property; the balance payable after deducting such
15trade-in allowance from the total selling price; the amount of
16tax due from the retailer with respect to such transaction; the
17amount of tax collected from the purchaser by the retailer on
18such transaction (or satisfactory evidence that such tax is not
19due in that particular instance, if that is claimed to be the
20fact); the place and date of the sale; a sufficient
21identification of the property sold; such other information as
22is required in Section 5-402 of the Illinois Vehicle Code, and
23such other information as the Department may reasonably
24require.
25 The transaction reporting return in the case of watercraft
26and aircraft must show the name and address of the seller; the

SB3445 Enrolled- 56 -LRB100 20331 HLH 35618 b
1name and address of the purchaser; the amount of the selling
2price including the amount allowed by the retailer for
3traded-in property, if any; the amount allowed by the retailer
4for the traded-in tangible personal property, if any, to the
5extent to which Section 2 of this Act allows an exemption for
6the value of traded-in property; the balance payable after
7deducting such trade-in allowance from the total selling price;
8the amount of tax due from the retailer with respect to such
9transaction; the amount of tax collected from the purchaser by
10the retailer on such transaction (or satisfactory evidence that
11such tax is not due in that particular instance, if that is
12claimed to be the fact); the place and date of the sale, a
13sufficient identification of the property sold, and such other
14information as the Department may reasonably require.
15 Such transaction reporting return shall be filed not later
16than 20 days after the date of delivery of the item that is
17being sold, but may be filed by the retailer at any time sooner
18than that if he chooses to do so. The transaction reporting
19return and tax remittance or proof of exemption from the tax
20that is imposed by this Act may be transmitted to the
21Department by way of the State agency with which, or State
22officer with whom, the tangible personal property must be
23titled or registered (if titling or registration is required)
24if the Department and such agency or State officer determine
25that this procedure will expedite the processing of
26applications for title or registration.

SB3445 Enrolled- 57 -LRB100 20331 HLH 35618 b
1 With each such transaction reporting return, the retailer
2shall remit the proper amount of tax due (or shall submit
3satisfactory evidence that the sale is not taxable if that is
4the case), to the Department or its agents, whereupon the
5Department shall issue, in the purchaser's name, a tax receipt
6(or a certificate of exemption if the Department is satisfied
7that the particular sale is tax exempt) which such purchaser
8may submit to the agency with which, or State officer with
9whom, he must title or register the tangible personal property
10that is involved (if titling or registration is required) in
11support of such purchaser's application for an Illinois
12certificate or other evidence of title or registration to such
13tangible personal property.
14 No retailer's failure or refusal to remit tax under this
15Act precludes a user, who has paid the proper tax to the
16retailer, from obtaining his certificate of title or other
17evidence of title or registration (if titling or registration
18is required) upon satisfying the Department that such user has
19paid the proper tax (if tax is due) to the retailer. The
20Department shall adopt appropriate rules to carry out the
21mandate of this paragraph.
22 If the user who would otherwise pay tax to the retailer
23wants the transaction reporting return filed and the payment of
24tax or proof of exemption made to the Department before the
25retailer is willing to take these actions and such user has not
26paid the tax to the retailer, such user may certify to the fact

SB3445 Enrolled- 58 -LRB100 20331 HLH 35618 b
1of such delay by the retailer, and may (upon the Department
2being satisfied of the truth of such certification) transmit
3the information required by the transaction reporting return
4and the remittance for tax or proof of exemption directly to
5the Department and obtain his tax receipt or exemption
6determination, in which event the transaction reporting return
7and tax remittance (if a tax payment was required) shall be
8credited by the Department to the proper retailer's account
9with the Department, but without the 2.1% or 1.75% discount
10provided for in this Section being allowed. When the user pays
11the tax directly to the Department, he shall pay the tax in the
12same amount and in the same form in which it would be remitted
13if the tax had been remitted to the Department by the retailer.
14 Where a retailer collects the tax with respect to the
15selling price of tangible personal property which he sells and
16the purchaser thereafter returns such tangible personal
17property and the retailer refunds the selling price thereof to
18the purchaser, such retailer shall also refund, to the
19purchaser, the tax so collected from the purchaser. When filing
20his return for the period in which he refunds such tax to the
21purchaser, the retailer may deduct the amount of the tax so
22refunded by him to the purchaser from any other use tax which
23such retailer may be required to pay or remit to the
24Department, as shown by such return, if the amount of the tax
25to be deducted was previously remitted to the Department by
26such retailer. If the retailer has not previously remitted the

SB3445 Enrolled- 59 -LRB100 20331 HLH 35618 b
1amount of such tax to the Department, he is entitled to no
2deduction under this Act upon refunding such tax to the
3purchaser.
4 Any retailer filing a return under this Section shall also
5include (for the purpose of paying tax thereon) the total tax
6covered by such return upon the selling price of tangible
7personal property purchased by him at retail from a retailer,
8but as to which the tax imposed by this Act was not collected
9from the retailer filing such return, and such retailer shall
10remit the amount of such tax to the Department when filing such
11return.
12 If experience indicates such action to be practicable, the
13Department may prescribe and furnish a combination or joint
14return which will enable retailers, who are required to file
15returns hereunder and also under the Retailers' Occupation Tax
16Act, to furnish all the return information required by both
17Acts on the one form.
18 Where the retailer has more than one business registered
19with the Department under separate registration under this Act,
20such retailer may not file each return that is due as a single
21return covering all such registered businesses, but shall file
22separate returns for each such registered business.
23 Beginning January 1, 1990, each month the Department shall
24pay into the State and Local Sales Tax Reform Fund, a special
25fund in the State Treasury which is hereby created, the net
26revenue realized for the preceding month from the 1% tax

SB3445 Enrolled- 60 -LRB100 20331 HLH 35618 b
1imposed under this Act on sales of food for human consumption
2which is to be consumed off the premises where it is sold
3(other than alcoholic beverages, soft drinks and food which has
4been prepared for immediate consumption) and prescription and
5nonprescription medicines, drugs, medical appliances, products
6classified as Class III medical devices by the United States
7Food and Drug Administration that are used for cancer treatment
8pursuant to a prescription, as well as any accessories and
9components related to those devices, and insulin, urine testing
10materials, syringes and needles used by diabetics.
11 Beginning January 1, 1990, each month the Department shall
12pay into the County and Mass Transit District Fund 4% of the
13net revenue realized for the preceding month from the 6.25%
14general rate on the selling price of tangible personal property
15which is purchased outside Illinois at retail from a retailer
16and which is titled or registered by an agency of this State's
17government.
18 Beginning January 1, 1990, each month the Department shall
19pay into the State and Local Sales Tax Reform Fund, a special
20fund in the State Treasury, 20% of the net revenue realized for
21the preceding month from the 6.25% general rate on the selling
22price of tangible personal property, other than tangible
23personal property which is purchased outside Illinois at retail
24from a retailer and which is titled or registered by an agency
25of this State's government.
26 Beginning August 1, 2000, each month the Department shall

SB3445 Enrolled- 61 -LRB100 20331 HLH 35618 b
1pay into the State and Local Sales Tax Reform Fund 100% of the
2net revenue realized for the preceding month from the 1.25%
3rate on the selling price of motor fuel and gasohol. Beginning
4September 1, 2010, each month the Department shall pay into the
5State and Local Sales Tax Reform Fund 100% of the net revenue
6realized for the preceding month from the 1.25% rate on the
7selling price of sales tax holiday items.
8 Beginning January 1, 1990, each month the Department shall
9pay into the Local Government Tax Fund 16% of the net revenue
10realized for the preceding month from the 6.25% general rate on
11the selling price of tangible personal property which is
12purchased outside Illinois at retail from a retailer and which
13is titled or registered by an agency of this State's
14government.
15 Beginning October 1, 2009, each month the Department shall
16pay into the Capital Projects Fund an amount that is equal to
17an amount estimated by the Department to represent 80% of the
18net revenue realized for the preceding month from the sale of
19candy, grooming and hygiene products, and soft drinks that had
20been taxed at a rate of 1% prior to September 1, 2009 but that
21are now taxed at 6.25%.
22 Beginning July 1, 2011, each month the Department shall pay
23into the Clean Air Act Permit Fund 80% of the net revenue
24realized for the preceding month from the 6.25% general rate on
25the selling price of sorbents used in Illinois in the process
26of sorbent injection as used to comply with the Environmental

SB3445 Enrolled- 62 -LRB100 20331 HLH 35618 b
1Protection Act or the federal Clean Air Act, but the total
2payment into the Clean Air Act Permit Fund under this Act and
3the Retailers' Occupation Tax Act shall not exceed $2,000,000
4in any fiscal year.
5 Beginning July 1, 2013, each month the Department shall pay
6into the Underground Storage Tank Fund from the proceeds
7collected under this Act, the Service Use Tax Act, the Service
8Occupation Tax Act, and the Retailers' Occupation Tax Act an
9amount equal to the average monthly deficit in the Underground
10Storage Tank Fund during the prior year, as certified annually
11by the Illinois Environmental Protection Agency, but the total
12payment into the Underground Storage Tank Fund under this Act,
13the Service Use Tax Act, the Service Occupation Tax Act, and
14the Retailers' Occupation Tax Act shall not exceed $18,000,000
15in any State fiscal year. As used in this paragraph, the
16"average monthly deficit" shall be equal to the difference
17between the average monthly claims for payment by the fund and
18the average monthly revenues deposited into the fund, excluding
19payments made pursuant to this paragraph.
20 Beginning July 1, 2015, of the remainder of the moneys
21received by the Department under this Act, the Service Use Tax
22Act, the Service Occupation Tax Act, and the Retailers'
23Occupation Tax Act, each month the Department shall deposit
24$500,000 into the State Crime Laboratory Fund.
25 Of the remainder of the moneys received by the Department
26pursuant to this Act, (a) 1.75% thereof shall be paid into the

SB3445 Enrolled- 63 -LRB100 20331 HLH 35618 b
1Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
2and after July 1, 1989, 3.8% thereof shall be paid into the
3Build Illinois Fund; provided, however, that if in any fiscal
4year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
5may be, of the moneys received by the Department and required
6to be paid into the Build Illinois Fund pursuant to Section 3
7of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
8Act, Section 9 of the Service Use Tax Act, and Section 9 of the
9Service Occupation Tax Act, such Acts being hereinafter called
10the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
11may be, of moneys being hereinafter called the "Tax Act
12Amount", and (2) the amount transferred to the Build Illinois
13Fund from the State and Local Sales Tax Reform Fund shall be
14less than the Annual Specified Amount (as defined in Section 3
15of the Retailers' Occupation Tax Act), an amount equal to the
16difference shall be immediately paid into the Build Illinois
17Fund from other moneys received by the Department pursuant to
18the Tax Acts; and further provided, that if on the last
19business day of any month the sum of (1) the Tax Act Amount
20required to be deposited into the Build Illinois Bond Account
21in the Build Illinois Fund during such month and (2) the amount
22transferred during such month to the Build Illinois Fund from
23the State and Local Sales Tax Reform Fund shall have been less
24than 1/12 of the Annual Specified Amount, an amount equal to
25the difference shall be immediately paid into the Build
26Illinois Fund from other moneys received by the Department

SB3445 Enrolled- 64 -LRB100 20331 HLH 35618 b
1pursuant to the Tax Acts; and, further provided, that in no
2event shall the payments required under the preceding proviso
3result in aggregate payments into the Build Illinois Fund
4pursuant to this clause (b) for any fiscal year in excess of
5the greater of (i) the Tax Act Amount or (ii) the Annual
6Specified Amount for such fiscal year; and, further provided,
7that the amounts payable into the Build Illinois Fund under
8this clause (b) shall be payable only until such time as the
9aggregate amount on deposit under each trust indenture securing
10Bonds issued and outstanding pursuant to the Build Illinois
11Bond Act is sufficient, taking into account any future
12investment income, to fully provide, in accordance with such
13indenture, for the defeasance of or the payment of the
14principal of, premium, if any, and interest on the Bonds
15secured by such indenture and on any Bonds expected to be
16issued thereafter and all fees and costs payable with respect
17thereto, all as certified by the Director of the Bureau of the
18Budget (now Governor's Office of Management and Budget). If on
19the last business day of any month in which Bonds are
20outstanding pursuant to the Build Illinois Bond Act, the
21aggregate of the moneys deposited in the Build Illinois Bond
22Account in the Build Illinois Fund in such month shall be less
23than the amount required to be transferred in such month from
24the Build Illinois Bond Account to the Build Illinois Bond
25Retirement and Interest Fund pursuant to Section 13 of the
26Build Illinois Bond Act, an amount equal to such deficiency

SB3445 Enrolled- 65 -LRB100 20331 HLH 35618 b
1shall be immediately paid from other moneys received by the
2Department pursuant to the Tax Acts to the Build Illinois Fund;
3provided, however, that any amounts paid to the Build Illinois
4Fund in any fiscal year pursuant to this sentence shall be
5deemed to constitute payments pursuant to clause (b) of the
6preceding sentence and shall reduce the amount otherwise
7payable for such fiscal year pursuant to clause (b) of the
8preceding sentence. The moneys received by the Department
9pursuant to this Act and required to be deposited into the
10Build Illinois Fund are subject to the pledge, claim and charge
11set forth in Section 12 of the Build Illinois Bond Act.
12 Subject to payment of amounts into the Build Illinois Fund
13as provided in the preceding paragraph or in any amendment
14thereto hereafter enacted, the following specified monthly
15installment of the amount requested in the certificate of the
16Chairman of the Metropolitan Pier and Exposition Authority
17provided under Section 8.25f of the State Finance Act, but not
18in excess of the sums designated as "Total Deposit", shall be
19deposited in the aggregate from collections under Section 9 of
20the Use Tax Act, Section 9 of the Service Use Tax Act, Section
219 of the Service Occupation Tax Act, and Section 3 of the
22Retailers' Occupation Tax Act into the McCormick Place
23Expansion Project Fund in the specified fiscal years.
24Fiscal YearTotal Deposit
251993 $0
261994 53,000,000

SB3445 Enrolled- 66 -LRB100 20331 HLH 35618 b
11995 58,000,000
21996 61,000,000
31997 64,000,000
41998 68,000,000
51999 71,000,000
62000 75,000,000
72001 80,000,000
82002 93,000,000
92003 99,000,000
102004103,000,000
112005108,000,000
122006113,000,000
132007119,000,000
142008126,000,000
152009132,000,000
162010139,000,000
172011146,000,000
182012153,000,000
192013161,000,000
202014170,000,000
212015179,000,000
222016189,000,000
232017199,000,000
242018210,000,000
252019221,000,000
262020233,000,000

SB3445 Enrolled- 67 -LRB100 20331 HLH 35618 b
12021246,000,000
22022260,000,000
32023275,000,000
42024 275,000,000
52025 275,000,000
62026 279,000,000
72027 292,000,000
82028 307,000,000
92029 322,000,000
102030 338,000,000
112031 350,000,000
122032 350,000,000
13and
14each fiscal year
15thereafter that bonds
16are outstanding under
17Section 13.2 of the
18Metropolitan Pier and
19Exposition Authority Act,
20but not after fiscal year 2060.
21 Beginning July 20, 1993 and in each month of each fiscal
22year thereafter, one-eighth of the amount requested in the
23certificate of the Chairman of the Metropolitan Pier and
24Exposition Authority for that fiscal year, less the amount
25deposited into the McCormick Place Expansion Project Fund by
26the State Treasurer in the respective month under subsection

SB3445 Enrolled- 68 -LRB100 20331 HLH 35618 b
1(g) of Section 13 of the Metropolitan Pier and Exposition
2Authority Act, plus cumulative deficiencies in the deposits
3required under this Section for previous months and years,
4shall be deposited into the McCormick Place Expansion Project
5Fund, until the full amount requested for the fiscal year, but
6not in excess of the amount specified above as "Total Deposit",
7has been deposited.
8 Subject to payment of amounts into the Build Illinois Fund
9and the McCormick Place Expansion Project Fund pursuant to the
10preceding paragraphs or in any amendments thereto hereafter
11enacted, beginning July 1, 1993 and ending on September 30,
122013, the Department shall each month pay into the Illinois Tax
13Increment Fund 0.27% of 80% of the net revenue realized for the
14preceding month from the 6.25% general rate on the selling
15price of tangible personal property.
16 Subject to payment of amounts into the Build Illinois Fund
17and the McCormick Place Expansion Project Fund pursuant to the
18preceding paragraphs or in any amendments thereto hereafter
19enacted, beginning with the receipt of the first report of
20taxes paid by an eligible business and continuing for a 25-year
21period, the Department shall each month pay into the Energy
22Infrastructure Fund 80% of the net revenue realized from the
236.25% general rate on the selling price of Illinois-mined coal
24that was sold to an eligible business. For purposes of this
25paragraph, the term "eligible business" means a new electric
26generating facility certified pursuant to Section 605-332 of

SB3445 Enrolled- 69 -LRB100 20331 HLH 35618 b
1the Department of Commerce and Economic Opportunity Law of the
2Civil Administrative Code of Illinois.
3 Subject to payment of amounts into the Build Illinois Fund,
4the McCormick Place Expansion Project Fund, the Illinois Tax
5Increment Fund, and the Energy Infrastructure Fund pursuant to
6the preceding paragraphs or in any amendments to this Section
7hereafter enacted, beginning on the first day of the first
8calendar month to occur on or after August 26, 2014 (the
9effective date of Public Act 98-1098), each month, from the
10collections made under Section 9 of the Use Tax Act, Section 9
11of the Service Use Tax Act, Section 9 of the Service Occupation
12Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
13the Department shall pay into the Tax Compliance and
14Administration Fund, to be used, subject to appropriation, to
15fund additional auditors and compliance personnel at the
16Department of Revenue, an amount equal to 1/12 of 5% of 80% of
17the cash receipts collected during the preceding fiscal year by
18the Audit Bureau of the Department under the Use Tax Act, the
19Service Use Tax Act, the Service Occupation Tax Act, the
20Retailers' Occupation Tax Act, and associated local occupation
21and use taxes administered by the Department.
22 Of the remainder of the moneys received by the Department
23pursuant to this Act, 75% thereof shall be paid into the State
24Treasury and 25% shall be reserved in a special account and
25used only for the transfer to the Common School Fund as part of
26the monthly transfer from the General Revenue Fund in

SB3445 Enrolled- 70 -LRB100 20331 HLH 35618 b
1accordance with Section 8a of the State Finance Act.
2 As soon as possible after the first day of each month, upon
3certification of the Department of Revenue, the Comptroller
4shall order transferred and the Treasurer shall transfer from
5the General Revenue Fund to the Motor Fuel Tax Fund an amount
6equal to 1.7% of 80% of the net revenue realized under this Act
7for the second preceding month. Beginning April 1, 2000, this
8transfer is no longer required and shall not be made.
9 Net revenue realized for a month shall be the revenue
10collected by the State pursuant to this Act, less the amount
11paid out during that month as refunds to taxpayers for
12overpayment of liability.
13 For greater simplicity of administration, manufacturers,
14importers and wholesalers whose products are sold at retail in
15Illinois by numerous retailers, and who wish to do so, may
16assume the responsibility for accounting and paying to the
17Department all tax accruing under this Act with respect to such
18sales, if the retailers who are affected do not make written
19objection to the Department to this arrangement.
20(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
2199-933, eff. 1-27-17; 100-303, eff. 8-24-17.)
22 (Text of Section after amendment by P.A. 100-363)
23 Sec. 9. Except as to motor vehicles, watercraft, aircraft,
24and trailers that are required to be registered with an agency
25of this State, each retailer required or authorized to collect

SB3445 Enrolled- 71 -LRB100 20331 HLH 35618 b
1the tax imposed by this Act shall pay to the Department the
2amount of such tax (except as otherwise provided) at the time
3when he is required to file his return for the period during
4which such tax was collected, less a discount of 2.1% prior to
5January 1, 1990, and 1.75% on and after January 1, 1990, or $5
6per calendar year, whichever is greater, which is allowed to
7reimburse the retailer for expenses incurred in collecting the
8tax, keeping records, preparing and filing returns, remitting
9the tax and supplying data to the Department on request. In the
10case of retailers who report and pay the tax on a transaction
11by transaction basis, as provided in this Section, such
12discount shall be taken with each such tax remittance instead
13of when such retailer files his periodic return. The discount
14allowed under this Section is allowed only for returns that are
15filed in the manner required by this Act. The Department may
16disallow the discount for retailers whose certificate of
17registration is revoked at the time the return is filed, but
18only if the Department's decision to revoke the certificate of
19registration has become final. A retailer need not remit that
20part of any tax collected by him to the extent that he is
21required to remit and does remit the tax imposed by the
22Retailers' Occupation Tax Act, with respect to the sale of the
23same property.
24 Where such tangible personal property is sold under a
25conditional sales contract, or under any other form of sale
26wherein the payment of the principal sum, or a part thereof, is

SB3445 Enrolled- 72 -LRB100 20331 HLH 35618 b
1extended beyond the close of the period for which the return is
2filed, the retailer, in collecting the tax (except as to motor
3vehicles, watercraft, aircraft, and trailers that are required
4to be registered with an agency of this State), may collect for
5each tax return period, only the tax applicable to that part of
6the selling price actually received during such tax return
7period.
8 Except as provided in this Section, on or before the
9twentieth day of each calendar month, such retailer shall file
10a return for the preceding calendar month. Such return shall be
11filed on forms prescribed by the Department and shall furnish
12such information as the Department may reasonably require. On
13and after January 1, 2018, except for returns for motor
14vehicles, watercraft, aircraft, and trailers that are required
15to be registered with an agency of this State, with respect to
16retailers whose annual gross receipts average $20,000 or more,
17all returns required to be filed pursuant to this Act shall be
18filed electronically. Retailers who demonstrate that they do
19not have access to the Internet or demonstrate hardship in
20filing electronically may petition the Department to waive the
21electronic filing requirement.
22 The Department may require returns to be filed on a
23quarterly basis. If so required, a return for each calendar
24quarter shall be filed on or before the twentieth day of the
25calendar month following the end of such calendar quarter. The
26taxpayer shall also file a return with the Department for each

SB3445 Enrolled- 73 -LRB100 20331 HLH 35618 b
1of the first two months of each calendar quarter, on or before
2the twentieth day of the following calendar month, stating:
3 1. The name of the seller;
4 2. The address of the principal place of business from
5 which he engages in the business of selling tangible
6 personal property at retail in this State;
7 3. The total amount of taxable receipts received by him
8 during the preceding calendar month from sales of tangible
9 personal property by him during such preceding calendar
10 month, including receipts from charge and time sales, but
11 less all deductions allowed by law;
12 4. The amount of credit provided in Section 2d of this
13 Act;
14 5. The amount of tax due;
15 5-5. The signature of the taxpayer; and
16 6. Such other reasonable information as the Department
17 may require.
18 If a taxpayer fails to sign a return within 30 days after
19the proper notice and demand for signature by the Department,
20the return shall be considered valid and any amount shown to be
21due on the return shall be deemed assessed.
22 Beginning October 1, 1993, a taxpayer who has an average
23monthly tax liability of $150,000 or more shall make all
24payments required by rules of the Department by electronic
25funds transfer. Beginning October 1, 1994, a taxpayer who has
26an average monthly tax liability of $100,000 or more shall make

SB3445 Enrolled- 74 -LRB100 20331 HLH 35618 b
1all payments required by rules of the Department by electronic
2funds transfer. Beginning October 1, 1995, a taxpayer who has
3an average monthly tax liability of $50,000 or more shall make
4all payments required by rules of the Department by electronic
5funds transfer. Beginning October 1, 2000, a taxpayer who has
6an annual tax liability of $200,000 or more shall make all
7payments required by rules of the Department by electronic
8funds transfer. The term "annual tax liability" shall be the
9sum of the taxpayer's liabilities under this Act, and under all
10other State and local occupation and use tax laws administered
11by the Department, for the immediately preceding calendar year.
12The term "average monthly tax liability" means the sum of the
13taxpayer's liabilities under this Act, and under all other
14State and local occupation and use tax laws administered by the
15Department, for the immediately preceding calendar year
16divided by 12. Beginning on October 1, 2002, a taxpayer who has
17a tax liability in the amount set forth in subsection (b) of
18Section 2505-210 of the Department of Revenue Law shall make
19all payments required by rules of the Department by electronic
20funds transfer.
21 Before August 1 of each year beginning in 1993, the
22Department shall notify all taxpayers required to make payments
23by electronic funds transfer. All taxpayers required to make
24payments by electronic funds transfer shall make those payments
25for a minimum of one year beginning on October 1.
26 Any taxpayer not required to make payments by electronic

SB3445 Enrolled- 75 -LRB100 20331 HLH 35618 b
1funds transfer may make payments by electronic funds transfer
2with the permission of the Department.
3 All taxpayers required to make payment by electronic funds
4transfer and any taxpayers authorized to voluntarily make
5payments by electronic funds transfer shall make those payments
6in the manner authorized by the Department.
7 The Department shall adopt such rules as are necessary to
8effectuate a program of electronic funds transfer and the
9requirements of this Section.
10 Before October 1, 2000, if the taxpayer's average monthly
11tax liability to the Department under this Act, the Retailers'
12Occupation Tax Act, the Service Occupation Tax Act, the Service
13Use Tax Act was $10,000 or more during the preceding 4 complete
14calendar quarters, he shall file a return with the Department
15each month by the 20th day of the month next following the
16month during which such tax liability is incurred and shall
17make payments to the Department on or before the 7th, 15th,
1822nd and last day of the month during which such liability is
19incurred. On and after October 1, 2000, if the taxpayer's
20average monthly tax liability to the Department under this Act,
21the Retailers' Occupation Tax Act, the Service Occupation Tax
22Act, and the Service Use Tax Act was $20,000 or more during the
23preceding 4 complete calendar quarters, he shall file a return
24with the Department each month by the 20th day of the month
25next following the month during which such tax liability is
26incurred and shall make payment to the Department on or before

SB3445 Enrolled- 76 -LRB100 20331 HLH 35618 b
1the 7th, 15th, 22nd and last day of the month during which such
2liability is incurred. If the month during which such tax
3liability is incurred began prior to January 1, 1985, each
4payment shall be in an amount equal to 1/4 of the taxpayer's
5actual liability for the month or an amount set by the
6Department not to exceed 1/4 of the average monthly liability
7of the taxpayer to the Department for the preceding 4 complete
8calendar quarters (excluding the month of highest liability and
9the month of lowest liability in such 4 quarter period). If the
10month during which such tax liability is incurred begins on or
11after January 1, 1985, and prior to January 1, 1987, each
12payment shall be in an amount equal to 22.5% of the taxpayer's
13actual liability for the month or 27.5% of the taxpayer's
14liability for the same calendar month of the preceding year. If
15the month during which such tax liability is incurred begins on
16or after January 1, 1987, and prior to January 1, 1988, each
17payment shall be in an amount equal to 22.5% of the taxpayer's
18actual liability for the month or 26.25% of the taxpayer's
19liability for the same calendar month of the preceding year. If
20the month during which such tax liability is incurred begins on
21or after January 1, 1988, and prior to January 1, 1989, or
22begins on or after January 1, 1996, each payment shall be in an
23amount equal to 22.5% of the taxpayer's actual liability for
24the month or 25% of the taxpayer's liability for the same
25calendar month of the preceding year. If the month during which
26such tax liability is incurred begins on or after January 1,

SB3445 Enrolled- 77 -LRB100 20331 HLH 35618 b
11989, and prior to January 1, 1996, each payment shall be in an
2amount equal to 22.5% of the taxpayer's actual liability for
3the month or 25% of the taxpayer's liability for the same
4calendar month of the preceding year or 100% of the taxpayer's
5actual liability for the quarter monthly reporting period. The
6amount of such quarter monthly payments shall be credited
7against the final tax liability of the taxpayer's return for
8that month. Before October 1, 2000, once applicable, the
9requirement of the making of quarter monthly payments to the
10Department shall continue until such taxpayer's average
11monthly liability to the Department during the preceding 4
12complete calendar quarters (excluding the month of highest
13liability and the month of lowest liability) is less than
14$9,000, or until such taxpayer's average monthly liability to
15the Department as computed for each calendar quarter of the 4
16preceding complete calendar quarter period is less than
17$10,000. However, if a taxpayer can show the Department that a
18substantial change in the taxpayer's business has occurred
19which causes the taxpayer to anticipate that his average
20monthly tax liability for the reasonably foreseeable future
21will fall below the $10,000 threshold stated above, then such
22taxpayer may petition the Department for change in such
23taxpayer's reporting status. On and after October 1, 2000, once
24applicable, the requirement of the making of quarter monthly
25payments to the Department shall continue until such taxpayer's
26average monthly liability to the Department during the

SB3445 Enrolled- 78 -LRB100 20331 HLH 35618 b
1preceding 4 complete calendar quarters (excluding the month of
2highest liability and the month of lowest liability) is less
3than $19,000 or until such taxpayer's average monthly liability
4to the Department as computed for each calendar quarter of the
54 preceding complete calendar quarter period is less than
6$20,000. However, if a taxpayer can show the Department that a
7substantial change in the taxpayer's business has occurred
8which causes the taxpayer to anticipate that his average
9monthly tax liability for the reasonably foreseeable future
10will fall below the $20,000 threshold stated above, then such
11taxpayer may petition the Department for a change in such
12taxpayer's reporting status. The Department shall change such
13taxpayer's reporting status unless it finds that such change is
14seasonal in nature and not likely to be long term. If any such
15quarter monthly payment is not paid at the time or in the
16amount required by this Section, then the taxpayer shall be
17liable for penalties and interest on the difference between the
18minimum amount due and the amount of such quarter monthly
19payment actually and timely paid, except insofar as the
20taxpayer has previously made payments for that month to the
21Department in excess of the minimum payments previously due as
22provided in this Section. The Department shall make reasonable
23rules and regulations to govern the quarter monthly payment
24amount and quarter monthly payment dates for taxpayers who file
25on other than a calendar monthly basis.
26 If any such payment provided for in this Section exceeds

SB3445 Enrolled- 79 -LRB100 20331 HLH 35618 b
1the taxpayer's liabilities under this Act, the Retailers'
2Occupation Tax Act, the Service Occupation Tax Act and the
3Service Use Tax Act, as shown by an original monthly return,
4the Department shall issue to the taxpayer a credit memorandum
5no later than 30 days after the date of payment, which
6memorandum may be submitted by the taxpayer to the Department
7in payment of tax liability subsequently to be remitted by the
8taxpayer to the Department or be assigned by the taxpayer to a
9similar taxpayer under this Act, the Retailers' Occupation Tax
10Act, the Service Occupation Tax Act or the Service Use Tax Act,
11in accordance with reasonable rules and regulations to be
12prescribed by the Department, except that if such excess
13payment is shown on an original monthly return and is made
14after December 31, 1986, no credit memorandum shall be issued,
15unless requested by the taxpayer. If no such request is made,
16the taxpayer may credit such excess payment against tax
17liability subsequently to be remitted by the taxpayer to the
18Department under this Act, the Retailers' Occupation Tax Act,
19the Service Occupation Tax Act or the Service Use Tax Act, in
20accordance with reasonable rules and regulations prescribed by
21the Department. If the Department subsequently determines that
22all or any part of the credit taken was not actually due to the
23taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
24be reduced by 2.1% or 1.75% of the difference between the
25credit taken and that actually due, and the taxpayer shall be
26liable for penalties and interest on such difference.

SB3445 Enrolled- 80 -LRB100 20331 HLH 35618 b
1 If the retailer is otherwise required to file a monthly
2return and if the retailer's average monthly tax liability to
3the Department does not exceed $200, the Department may
4authorize his returns to be filed on a quarter annual basis,
5with the return for January, February, and March of a given
6year being due by April 20 of such year; with the return for
7April, May and June of a given year being due by July 20 of such
8year; with the return for July, August and September of a given
9year being due by October 20 of such year, and with the return
10for October, November and December of a given year being due by
11January 20 of the following year.
12 If the retailer is otherwise required to file a monthly or
13quarterly return and if the retailer's average monthly tax
14liability to the Department does not exceed $50, the Department
15may authorize his returns to be filed on an annual basis, with
16the return for a given year being due by January 20 of the
17following year.
18 Such quarter annual and annual returns, as to form and
19substance, shall be subject to the same requirements as monthly
20returns.
21 Notwithstanding any other provision in this Act concerning
22the time within which a retailer may file his return, in the
23case of any retailer who ceases to engage in a kind of business
24which makes him responsible for filing returns under this Act,
25such retailer shall file a final return under this Act with the
26Department not more than one month after discontinuing such

SB3445 Enrolled- 81 -LRB100 20331 HLH 35618 b
1business.
2 In addition, with respect to motor vehicles, watercraft,
3aircraft, and trailers that are required to be registered with
4an agency of this State, except as otherwise provided in this
5Section, every retailer selling this kind of tangible personal
6property shall file, with the Department, upon a form to be
7prescribed and supplied by the Department, a separate return
8for each such item of tangible personal property which the
9retailer sells, except that if, in the same transaction, (i) a
10retailer of aircraft, watercraft, motor vehicles or trailers
11transfers more than one aircraft, watercraft, motor vehicle or
12trailer to another aircraft, watercraft, motor vehicle or
13trailer retailer for the purpose of resale or (ii) a retailer
14of aircraft, watercraft, motor vehicles, or trailers transfers
15more than one aircraft, watercraft, motor vehicle, or trailer
16to a purchaser for use as a qualifying rolling stock as
17provided in Section 3-55 of this Act, then that seller may
18report the transfer of all the aircraft, watercraft, motor
19vehicles or trailers involved in that transaction to the
20Department on the same uniform invoice-transaction reporting
21return form. For purposes of this Section, "watercraft" means a
22Class 2, Class 3, or Class 4 watercraft as defined in Section
233-2 of the Boat Registration and Safety Act, a personal
24watercraft, or any boat equipped with an inboard motor.
25 In addition, with respect to motor vehicles, watercraft,
26aircraft, and trailers that are required to be registered with

SB3445 Enrolled- 82 -LRB100 20331 HLH 35618 b
1an agency of this State, every person who is engaged in the
2business of leasing or renting such items and who, in
3connection with such business, sells any such item to a
4retailer for the purpose of resale is, notwithstanding any
5other provision of this Section to the contrary, authorized to
6meet the return-filing requirement of this Act by reporting the
7transfer of all the aircraft, watercraft, motor vehicles, or
8trailers transferred for resale during a month to the
9Department on the same uniform invoice-transaction reporting
10return form on or before the 20th of the month following the
11month in which the transfer takes place. Notwithstanding any
12other provision of this Act to the contrary, all returns filed
13under this paragraph must be filed by electronic means in the
14manner and form as required by the Department.
15 The transaction reporting return in the case of motor
16vehicles or trailers that are required to be registered with an
17agency of this State, shall be the same document as the Uniform
18Invoice referred to in Section 5-402 of the Illinois Vehicle
19Code and must show the name and address of the seller; the name
20and address of the purchaser; the amount of the selling price
21including the amount allowed by the retailer for traded-in
22property, if any; the amount allowed by the retailer for the
23traded-in tangible personal property, if any, to the extent to
24which Section 2 of this Act allows an exemption for the value
25of traded-in property; the balance payable after deducting such
26trade-in allowance from the total selling price; the amount of

SB3445 Enrolled- 83 -LRB100 20331 HLH 35618 b
1tax due from the retailer with respect to such transaction; the
2amount of tax collected from the purchaser by the retailer on
3such transaction (or satisfactory evidence that such tax is not
4due in that particular instance, if that is claimed to be the
5fact); the place and date of the sale; a sufficient
6identification of the property sold; such other information as
7is required in Section 5-402 of the Illinois Vehicle Code, and
8such other information as the Department may reasonably
9require.
10 The transaction reporting return in the case of watercraft
11and aircraft must show the name and address of the seller; the
12name and address of the purchaser; the amount of the selling
13price including the amount allowed by the retailer for
14traded-in property, if any; the amount allowed by the retailer
15for the traded-in tangible personal property, if any, to the
16extent to which Section 2 of this Act allows an exemption for
17the value of traded-in property; the balance payable after
18deducting such trade-in allowance from the total selling price;
19the amount of tax due from the retailer with respect to such
20transaction; the amount of tax collected from the purchaser by
21the retailer on such transaction (or satisfactory evidence that
22such tax is not due in that particular instance, if that is
23claimed to be the fact); the place and date of the sale, a
24sufficient identification of the property sold, and such other
25information as the Department may reasonably require.
26 Such transaction reporting return shall be filed not later

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1than 20 days after the date of delivery of the item that is
2being sold, but may be filed by the retailer at any time sooner
3than that if he chooses to do so. The transaction reporting
4return and tax remittance or proof of exemption from the tax
5that is imposed by this Act may be transmitted to the
6Department by way of the State agency with which, or State
7officer with whom, the tangible personal property must be
8titled or registered (if titling or registration is required)
9if the Department and such agency or State officer determine
10that this procedure will expedite the processing of
11applications for title or registration.
12 With each such transaction reporting return, the retailer
13shall remit the proper amount of tax due (or shall submit
14satisfactory evidence that the sale is not taxable if that is
15the case), to the Department or its agents, whereupon the
16Department shall issue, in the purchaser's name, a tax receipt
17(or a certificate of exemption if the Department is satisfied
18that the particular sale is tax exempt) which such purchaser
19may submit to the agency with which, or State officer with
20whom, he must title or register the tangible personal property
21that is involved (if titling or registration is required) in
22support of such purchaser's application for an Illinois
23certificate or other evidence of title or registration to such
24tangible personal property.
25 No retailer's failure or refusal to remit tax under this
26Act precludes a user, who has paid the proper tax to the

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1retailer, from obtaining his certificate of title or other
2evidence of title or registration (if titling or registration
3is required) upon satisfying the Department that such user has
4paid the proper tax (if tax is due) to the retailer. The
5Department shall adopt appropriate rules to carry out the
6mandate of this paragraph.
7 If the user who would otherwise pay tax to the retailer
8wants the transaction reporting return filed and the payment of
9tax or proof of exemption made to the Department before the
10retailer is willing to take these actions and such user has not
11paid the tax to the retailer, such user may certify to the fact
12of such delay by the retailer, and may (upon the Department
13being satisfied of the truth of such certification) transmit
14the information required by the transaction reporting return
15and the remittance for tax or proof of exemption directly to
16the Department and obtain his tax receipt or exemption
17determination, in which event the transaction reporting return
18and tax remittance (if a tax payment was required) shall be
19credited by the Department to the proper retailer's account
20with the Department, but without the 2.1% or 1.75% discount
21provided for in this Section being allowed. When the user pays
22the tax directly to the Department, he shall pay the tax in the
23same amount and in the same form in which it would be remitted
24if the tax had been remitted to the Department by the retailer.
25 Where a retailer collects the tax with respect to the
26selling price of tangible personal property which he sells and

SB3445 Enrolled- 86 -LRB100 20331 HLH 35618 b
1the purchaser thereafter returns such tangible personal
2property and the retailer refunds the selling price thereof to
3the purchaser, such retailer shall also refund, to the
4purchaser, the tax so collected from the purchaser. When filing
5his return for the period in which he refunds such tax to the
6purchaser, the retailer may deduct the amount of the tax so
7refunded by him to the purchaser from any other use tax which
8such retailer may be required to pay or remit to the
9Department, as shown by such return, if the amount of the tax
10to be deducted was previously remitted to the Department by
11such retailer. If the retailer has not previously remitted the
12amount of such tax to the Department, he is entitled to no
13deduction under this Act upon refunding such tax to the
14purchaser.
15 Any retailer filing a return under this Section shall also
16include (for the purpose of paying tax thereon) the total tax
17covered by such return upon the selling price of tangible
18personal property purchased by him at retail from a retailer,
19but as to which the tax imposed by this Act was not collected
20from the retailer filing such return, and such retailer shall
21remit the amount of such tax to the Department when filing such
22return.
23 If experience indicates such action to be practicable, the
24Department may prescribe and furnish a combination or joint
25return which will enable retailers, who are required to file
26returns hereunder and also under the Retailers' Occupation Tax

SB3445 Enrolled- 87 -LRB100 20331 HLH 35618 b
1Act, to furnish all the return information required by both
2Acts on the one form.
3 Where the retailer has more than one business registered
4with the Department under separate registration under this Act,
5such retailer may not file each return that is due as a single
6return covering all such registered businesses, but shall file
7separate returns for each such registered business.
8 Beginning January 1, 1990, each month the Department shall
9pay into the State and Local Sales Tax Reform Fund, a special
10fund in the State Treasury which is hereby created, the net
11revenue realized for the preceding month from the 1% tax
12imposed under this Act on sales of food for human consumption
13which is to be consumed off the premises where it is sold
14(other than alcoholic beverages, soft drinks and food which has
15been prepared for immediate consumption) and prescription and
16nonprescription medicines, drugs, medical appliances, products
17classified as Class III medical devices by the United States
18Food and Drug Administration that are used for cancer treatment
19pursuant to a prescription, as well as any accessories and
20components related to those devices, and insulin, urine testing
21materials, syringes and needles used by diabetics.
22 Beginning January 1, 1990, each month the Department shall
23pay into the County and Mass Transit District Fund 4% of the
24net revenue realized for the preceding month from the 6.25%
25general rate on the selling price of tangible personal property
26which is purchased outside Illinois at retail from a retailer

SB3445 Enrolled- 88 -LRB100 20331 HLH 35618 b
1and which is titled or registered by an agency of this State's
2government.
3 Beginning January 1, 1990, each month the Department shall
4pay into the State and Local Sales Tax Reform Fund, a special
5fund in the State Treasury, 20% of the net revenue realized for
6the preceding month from the 6.25% general rate on the selling
7price of tangible personal property, other than tangible
8personal property which is purchased outside Illinois at retail
9from a retailer and which is titled or registered by an agency
10of this State's government.
11 Beginning August 1, 2000, each month the Department shall
12pay into the State and Local Sales Tax Reform Fund 100% of the
13net revenue realized for the preceding month from the 1.25%
14rate on the selling price of motor fuel and gasohol. Beginning
15September 1, 2010, each month the Department shall pay into the
16State and Local Sales Tax Reform Fund 100% of the net revenue
17realized for the preceding month from the 1.25% rate on the
18selling price of sales tax holiday items.
19 Beginning January 1, 1990, each month the Department shall
20pay into the Local Government Tax Fund 16% of the net revenue
21realized for the preceding month from the 6.25% general rate on
22the selling price of tangible personal property which is
23purchased outside Illinois at retail from a retailer and which
24is titled or registered by an agency of this State's
25government.
26 Beginning October 1, 2009, each month the Department shall

SB3445 Enrolled- 89 -LRB100 20331 HLH 35618 b
1pay into the Capital Projects Fund an amount that is equal to
2an amount estimated by the Department to represent 80% of the
3net revenue realized for the preceding month from the sale of
4candy, grooming and hygiene products, and soft drinks that had
5been taxed at a rate of 1% prior to September 1, 2009 but that
6are now taxed at 6.25%.
7 Beginning July 1, 2011, each month the Department shall pay
8into the Clean Air Act Permit Fund 80% of the net revenue
9realized for the preceding month from the 6.25% general rate on
10the selling price of sorbents used in Illinois in the process
11of sorbent injection as used to comply with the Environmental
12Protection Act or the federal Clean Air Act, but the total
13payment into the Clean Air Act Permit Fund under this Act and
14the Retailers' Occupation Tax Act shall not exceed $2,000,000
15in any fiscal year.
16 Beginning July 1, 2013, each month the Department shall pay
17into the Underground Storage Tank Fund from the proceeds
18collected under this Act, the Service Use Tax Act, the Service
19Occupation Tax Act, and the Retailers' Occupation Tax Act an
20amount equal to the average monthly deficit in the Underground
21Storage Tank Fund during the prior year, as certified annually
22by the Illinois Environmental Protection Agency, but the total
23payment into the Underground Storage Tank Fund under this Act,
24the Service Use Tax Act, the Service Occupation Tax Act, and
25the Retailers' Occupation Tax Act shall not exceed $18,000,000
26in any State fiscal year. As used in this paragraph, the

SB3445 Enrolled- 90 -LRB100 20331 HLH 35618 b
1"average monthly deficit" shall be equal to the difference
2between the average monthly claims for payment by the fund and
3the average monthly revenues deposited into the fund, excluding
4payments made pursuant to this paragraph.
5 Beginning July 1, 2015, of the remainder of the moneys
6received by the Department under this Act, the Service Use Tax
7Act, the Service Occupation Tax Act, and the Retailers'
8Occupation Tax Act, each month the Department shall deposit
9$500,000 into the State Crime Laboratory Fund.
10 Of the remainder of the moneys received by the Department
11pursuant to this Act, (a) 1.75% thereof shall be paid into the
12Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
13and after July 1, 1989, 3.8% thereof shall be paid into the
14Build Illinois Fund; provided, however, that if in any fiscal
15year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
16may be, of the moneys received by the Department and required
17to be paid into the Build Illinois Fund pursuant to Section 3
18of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
19Act, Section 9 of the Service Use Tax Act, and Section 9 of the
20Service Occupation Tax Act, such Acts being hereinafter called
21the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
22may be, of moneys being hereinafter called the "Tax Act
23Amount", and (2) the amount transferred to the Build Illinois
24Fund from the State and Local Sales Tax Reform Fund shall be
25less than the Annual Specified Amount (as defined in Section 3
26of the Retailers' Occupation Tax Act), an amount equal to the

SB3445 Enrolled- 91 -LRB100 20331 HLH 35618 b
1difference shall be immediately paid into the Build Illinois
2Fund from other moneys received by the Department pursuant to
3the Tax Acts; and further provided, that if on the last
4business day of any month the sum of (1) the Tax Act Amount
5required to be deposited into the Build Illinois Bond Account
6in the Build Illinois Fund during such month and (2) the amount
7transferred during such month to the Build Illinois Fund from
8the State and Local Sales Tax Reform Fund shall have been less
9than 1/12 of the Annual Specified Amount, an amount equal to
10the difference shall be immediately paid into the Build
11Illinois Fund from other moneys received by the Department
12pursuant to the Tax Acts; and, further provided, that in no
13event shall the payments required under the preceding proviso
14result in aggregate payments into the Build Illinois Fund
15pursuant to this clause (b) for any fiscal year in excess of
16the greater of (i) the Tax Act Amount or (ii) the Annual
17Specified Amount for such fiscal year; and, further provided,
18that the amounts payable into the Build Illinois Fund under
19this clause (b) shall be payable only until such time as the
20aggregate amount on deposit under each trust indenture securing
21Bonds issued and outstanding pursuant to the Build Illinois
22Bond Act is sufficient, taking into account any future
23investment income, to fully provide, in accordance with such
24indenture, for the defeasance of or the payment of the
25principal of, premium, if any, and interest on the Bonds
26secured by such indenture and on any Bonds expected to be

SB3445 Enrolled- 92 -LRB100 20331 HLH 35618 b
1issued thereafter and all fees and costs payable with respect
2thereto, all as certified by the Director of the Bureau of the
3Budget (now Governor's Office of Management and Budget). If on
4the last business day of any month in which Bonds are
5outstanding pursuant to the Build Illinois Bond Act, the
6aggregate of the moneys deposited in the Build Illinois Bond
7Account in the Build Illinois Fund in such month shall be less
8than the amount required to be transferred in such month from
9the Build Illinois Bond Account to the Build Illinois Bond
10Retirement and Interest Fund pursuant to Section 13 of the
11Build Illinois Bond Act, an amount equal to such deficiency
12shall be immediately paid from other moneys received by the
13Department pursuant to the Tax Acts to the Build Illinois Fund;
14provided, however, that any amounts paid to the Build Illinois
15Fund in any fiscal year pursuant to this sentence shall be
16deemed to constitute payments pursuant to clause (b) of the
17preceding sentence and shall reduce the amount otherwise
18payable for such fiscal year pursuant to clause (b) of the
19preceding sentence. The moneys received by the Department
20pursuant to this Act and required to be deposited into the
21Build Illinois Fund are subject to the pledge, claim and charge
22set forth in Section 12 of the Build Illinois Bond Act.
23 Subject to payment of amounts into the Build Illinois Fund
24as provided in the preceding paragraph or in any amendment
25thereto hereafter enacted, the following specified monthly
26installment of the amount requested in the certificate of the

SB3445 Enrolled- 93 -LRB100 20331 HLH 35618 b
1Chairman of the Metropolitan Pier and Exposition Authority
2provided under Section 8.25f of the State Finance Act, but not
3in excess of the sums designated as "Total Deposit", shall be
4deposited in the aggregate from collections under Section 9 of
5the Use Tax Act, Section 9 of the Service Use Tax Act, Section
69 of the Service Occupation Tax Act, and Section 3 of the
7Retailers' Occupation Tax Act into the McCormick Place
8Expansion Project Fund in the specified fiscal years.
9Fiscal YearTotal Deposit
101993 $0
111994 53,000,000
121995 58,000,000
131996 61,000,000
141997 64,000,000
151998 68,000,000
161999 71,000,000
172000 75,000,000
182001 80,000,000
192002 93,000,000
202003 99,000,000
212004103,000,000
222005108,000,000
232006113,000,000
242007119,000,000
252008126,000,000
262009132,000,000

SB3445 Enrolled- 94 -LRB100 20331 HLH 35618 b
12010139,000,000
22011146,000,000
32012153,000,000
42013161,000,000
52014170,000,000
62015179,000,000
72016189,000,000
82017199,000,000
92018210,000,000
102019221,000,000
112020233,000,000
122021246,000,000
132022260,000,000
142023275,000,000
152024 275,000,000
162025 275,000,000
172026 279,000,000
182027 292,000,000
192028 307,000,000
202029 322,000,000
212030 338,000,000
222031 350,000,000
232032 350,000,000
24and
25each fiscal year
26thereafter that bonds

SB3445 Enrolled- 95 -LRB100 20331 HLH 35618 b
1are outstanding under
2Section 13.2 of the
3Metropolitan Pier and
4Exposition Authority Act,
5but not after fiscal year 2060.
6 Beginning July 20, 1993 and in each month of each fiscal
7year thereafter, one-eighth of the amount requested in the
8certificate of the Chairman of the Metropolitan Pier and
9Exposition Authority for that fiscal year, less the amount
10deposited into the McCormick Place Expansion Project Fund by
11the State Treasurer in the respective month under subsection
12(g) of Section 13 of the Metropolitan Pier and Exposition
13Authority Act, plus cumulative deficiencies in the deposits
14required under this Section for previous months and years,
15shall be deposited into the McCormick Place Expansion Project
16Fund, until the full amount requested for the fiscal year, but
17not in excess of the amount specified above as "Total Deposit",
18has been deposited.
19 Subject to payment of amounts into the Build Illinois Fund
20and the McCormick Place Expansion Project Fund pursuant to the
21preceding paragraphs or in any amendments thereto hereafter
22enacted, beginning July 1, 1993 and ending on September 30,
232013, the Department shall each month pay into the Illinois Tax
24Increment Fund 0.27% of 80% of the net revenue realized for the
25preceding month from the 6.25% general rate on the selling
26price of tangible personal property.

SB3445 Enrolled- 96 -LRB100 20331 HLH 35618 b
1 Subject to payment of amounts into the Build Illinois Fund
2and the McCormick Place Expansion Project Fund pursuant to the
3preceding paragraphs or in any amendments thereto hereafter
4enacted, beginning with the receipt of the first report of
5taxes paid by an eligible business and continuing for a 25-year
6period, the Department shall each month pay into the Energy
7Infrastructure Fund 80% of the net revenue realized from the
86.25% general rate on the selling price of Illinois-mined coal
9that was sold to an eligible business. For purposes of this
10paragraph, the term "eligible business" means a new electric
11generating facility certified pursuant to Section 605-332 of
12the Department of Commerce and Economic Opportunity Law of the
13Civil Administrative Code of Illinois.
14 Subject to payment of amounts into the Build Illinois Fund,
15the McCormick Place Expansion Project Fund, the Illinois Tax
16Increment Fund, and the Energy Infrastructure Fund pursuant to
17the preceding paragraphs or in any amendments to this Section
18hereafter enacted, beginning on the first day of the first
19calendar month to occur on or after August 26, 2014 (the
20effective date of Public Act 98-1098), each month, from the
21collections made under Section 9 of the Use Tax Act, Section 9
22of the Service Use Tax Act, Section 9 of the Service Occupation
23Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
24the Department shall pay into the Tax Compliance and
25Administration Fund, to be used, subject to appropriation, to
26fund additional auditors and compliance personnel at the

SB3445 Enrolled- 97 -LRB100 20331 HLH 35618 b
1Department of Revenue, an amount equal to 1/12 of 5% of 80% of
2the cash receipts collected during the preceding fiscal year by
3the Audit Bureau of the Department under the Use Tax Act, the
4Service Use Tax Act, the Service Occupation Tax Act, the
5Retailers' Occupation Tax Act, and associated local occupation
6and use taxes administered by the Department.
7 Subject to payments of amounts into the Build Illinois
8Fund, the McCormick Place Expansion Project Fund, the Illinois
9Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
10Compliance and Administration Fund as provided in this Section,
11beginning on July 1, 2018 the Department shall pay each month
12into the Downstate Public Transportation Fund the moneys
13required to be so paid under Section 2-3 of the Downstate
14Public Transportation Act.
15 Of the remainder of the moneys received by the Department
16pursuant to this Act, 75% thereof shall be paid into the State
17Treasury and 25% shall be reserved in a special account and
18used only for the transfer to the Common School Fund as part of
19the monthly transfer from the General Revenue Fund in
20accordance with Section 8a of the State Finance Act.
21 As soon as possible after the first day of each month, upon
22certification of the Department of Revenue, the Comptroller
23shall order transferred and the Treasurer shall transfer from
24the General Revenue Fund to the Motor Fuel Tax Fund an amount
25equal to 1.7% of 80% of the net revenue realized under this Act
26for the second preceding month. Beginning April 1, 2000, this

SB3445 Enrolled- 98 -LRB100 20331 HLH 35618 b
1transfer is no longer required and shall not be made.
2 Net revenue realized for a month shall be the revenue
3collected by the State pursuant to this Act, less the amount
4paid out during that month as refunds to taxpayers for
5overpayment of liability.
6 For greater simplicity of administration, manufacturers,
7importers and wholesalers whose products are sold at retail in
8Illinois by numerous retailers, and who wish to do so, may
9assume the responsibility for accounting and paying to the
10Department all tax accruing under this Act with respect to such
11sales, if the retailers who are affected do not make written
12objection to the Department to this arrangement.
13(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
1499-933, eff. 1-27-17; 100-303, eff. 8-24-17; 100-363, eff.
157-1-18; revised 10-20-17.)
16 (35 ILCS 105/10) (from Ch. 120, par. 439.10)
17 Sec. 10. Except as to motor vehicles, aircraft, watercraft,
18and trailers, and except as to cigarettes as defined in the
19Cigarette Use Tax Act, when tangible personal property is
20purchased from a retailer for use in this State by a purchaser
21who did not pay the tax imposed by this Act to the retailer,
22and a purchaser who does not file returns with the Department
23as a retailer under Section 9 of this Act, such purchaser (by
24the last day of the month following the calendar month in which
25such purchaser makes any payment upon the selling price of such

SB3445 Enrolled- 99 -LRB100 20331 HLH 35618 b
1property) shall, except as otherwise provided in this Section,
2file a return with the Department and pay the tax upon that
3portion of the selling price so paid by the purchaser during
4the preceding calendar month. When tangible personal property,
5other than motor vehicles and trailers, is purchased by a
6lessor, under a lease for one year or longer, executed or in
7effect at the time of purchase to an interstate carrier for
8hire, who did not pay the tax imposed by this Act to the
9retailer, such lessor (by the last day of the month following
10the calendar month in which such property reverts to the use of
11such lessor) shall file a return with the Department and pay
12the tax upon the fair market value of such property on the date
13of such reversion. However, in determining the fair market
14value at the time of reversion, the fair market value of such
15property shall not exceed the original purchase price of the
16property that was paid by the lessor at the time of purchase.
17Such return shall be filed on a form prescribed by the
18Department and shall contain such information as the Department
19may reasonably require. Such return and payment from the
20purchaser shall be submitted to the Department sooner than the
21last day of the month after the month in which the purchase is
22made to the extent that that may be necessary in order to
23secure the title to a motor vehicle or the certificate of
24registration for an aircraft. Except as to motor vehicles,
25aircraft, watercraft, and trailers, and except as to cigarettes
26as defined in the Cigarette Use Tax Act, when tangible personal

SB3445 Enrolled- 100 -LRB100 20331 HLH 35618 b
1property is purchased out-of-state from a retailer by a
2purchaser who did not pay the tax imposed by this Act to the
3retailer, and a purchaser who does not file returns with the
4Department as a retailer under Section 9 of this Act, the
5liability for the tax imposed by the Act arises on the date
6such tangible personal property is brought into this State. The
7purchaser shall, within 30 days after such tangible personal
8property is brought into this State, file with the Department,
9upon a form to be prescribed and supplied by the Department, a
10return for the tangible personal property purchased. However,
11except as to motor vehicles and aircraft, and except as to
12cigarettes as defined in the Cigarette Use Tax Act, if the
13purchaser's annual use tax liability does not exceed $600, the
14purchaser may file the return on an annual basis on or before
15April 15th of the year following the year use tax liability was
16incurred. Individual purchasers with an annual use tax
17liability that does not exceed $600 may, in lieu of the filing
18and payment requirements in this Section, file and pay in
19compliance with Section 502.1 of the Illinois Income Tax Act.
20 If cigarettes, as defined in the Cigarette Use Tax Act, are
21purchased from a retailer for use in this State by a purchaser
22who did not pay the tax imposed by this Act to the retailer,
23and a purchaser who does not file returns with the Department
24as a retailer under Section 9 of this Act, such purchaser must,
25within 30 days after acquiring the cigarettes, file a return
26with the Department and pay the tax upon that portion of the

SB3445 Enrolled- 101 -LRB100 20331 HLH 35618 b
1selling price so paid by the purchaser for the cigarettes. When
2cigarettes, as defined in the Cigarette Use Tax Act, are
3purchased out-of-state from a retailer for use in this State by
4a purchaser who did not pay the tax imposed by this Act to the
5retailer, and a purchaser who does not file returns with the
6Department as a retailer under Section 9 of this Act, the
7liability for the tax imposed by the Act arises on the date
8such cigarettes are brought into this State. The purchaser
9shall, within 30 days after such cigarettes are brought into
10this State, file with the Department, upon a form to be
11prescribed and supplied by the Department, a return for the
12cigarettes purchased.
13 In addition with respect to motor vehicles, aircraft,
14watercraft, and trailers, a purchaser of such tangible personal
15property for use in this State, who purchases such tangible
16personal property from an out-of-state retailer, shall file
17with the Department, upon a form to be prescribed and supplied
18by the Department, a return for each such item of tangible
19personal property purchased, except that if, in the same
20transaction, (i) a purchaser of motor vehicles, aircraft,
21watercraft, or trailers who is a retailer of motor vehicles,
22aircraft, watercraft, or trailers purchases more than one motor
23vehicle, aircraft, watercraft, or trailer for the purpose of
24resale or (ii) a purchaser of motor vehicles, aircraft,
25watercraft, or trailers purchases more than one motor vehicle,
26aircraft, watercraft, or trailer for use as qualifying rolling

SB3445 Enrolled- 102 -LRB100 20331 HLH 35618 b
1stock as provided in Section 3-55 of this Act, then the
2purchaser may report the purchase of all motor vehicles,
3aircraft, watercraft, or trailers involved in that transaction
4to the Department on a single return prescribed by the
5Department. Such return in the case of motor vehicles and
6aircraft must show the name and address of the seller, the
7name, address of purchaser, the amount of the selling price
8including the amount allowed by the retailer for traded in
9property, if any; the amount allowed by the retailer for the
10traded-in tangible personal property, if any, to the extent to
11which Section 2 of this Act allows an exemption for the value
12of traded-in property; the balance payable after deducting such
13trade-in allowance from the total selling price; the amount of
14tax due from the purchaser with respect to such transaction;
15the amount of tax collected from the purchaser by the retailer
16on such transaction (or satisfactory evidence that such tax is
17not due in that particular instance if that is claimed to be
18the fact); the place and date of the sale, a sufficient
19identification of the property sold, and such other information
20as the Department may reasonably require.
21 Such return shall be filed not later than 30 days after
22such motor vehicle or aircraft is brought into this State for
23use.
24 For purposes of this Section, "watercraft" means a Class 2,
25Class 3, or Class 4 watercraft as defined in Section 3-2 of the
26Boat Registration and Safety Act, a personal watercraft, or any

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1boat equipped with an inboard motor.
2 The return and tax remittance or proof of exemption from
3the tax that is imposed by this Act may be transmitted to the
4Department by way of the State agency with which, or State
5officer with whom, the tangible personal property must be
6titled or registered (if titling or registration is required)
7if the Department and such agency or State officer determine
8that this procedure will expedite the processing of
9applications for title or registration.
10 With each such return, the purchaser shall remit the proper
11amount of tax due (or shall submit satisfactory evidence that
12the sale is not taxable if that is the case), to the Department
13or its agents, whereupon the Department shall issue, in the
14purchaser's name, a tax receipt (or a certificate of exemption
15if the Department is satisfied that the particular sale is tax
16exempt) which such purchaser may submit to the agency with
17which, or State officer with whom, he must title or register
18the tangible personal property that is involved (if titling or
19registration is required) in support of such purchaser's
20application for an Illinois certificate or other evidence of
21title or registration to such tangible personal property.
22 When a purchaser pays a tax imposed by this Act directly to
23the Department, the Department (upon request therefor from such
24purchaser) shall issue an appropriate receipt to such purchaser
25showing that he has paid such tax to the Department. Such
26receipt shall be sufficient to relieve the purchaser from

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1further liability for the tax to which such receipt may refer.
2 A user who is liable to pay use tax directly to the
3Department only occasionally and not on a frequently recurring
4basis, and who is not required to file returns with the
5Department as a retailer under Section 9 of this Act, or under
6the "Retailers' Occupation Tax Act", or as a registrant with
7the Department under the "Service Occupation Tax Act" or the
8"Service Use Tax Act", need not register with the Department.
9However, if such a user has a frequently recurring direct use
10tax liability to pay to the Department, such user shall be
11required to register with the Department on forms prescribed by
12the Department and to obtain and display a certificate of
13registration from the Department. In that event, all of the
14provisions of Section 9 of this Act concerning the filing of
15regular monthly, quarterly or annual tax returns and all of the
16provisions of Section 2a of the "Retailers' Occupation Tax Act"
17concerning the requirements for registrants to post bond or
18other security with the Department, as the provisions of such
19sections now exist or may hereafter be amended, shall apply to
20such users to the same extent as if such provisions were
21included herein.
22(Source: P.A. 100-321, eff. 8-24-17.)
23 Section 35. The Service Use Tax Act is amended by changing
24Sections 3-5, 3-5.5, and 9 as follows:

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1 (35 ILCS 110/3-5)
2 Sec. 3-5. Exemptions. Use of the following tangible
3personal property is exempt from the tax imposed by this Act:
4 (1) Personal property purchased from a corporation,
5society, association, foundation, institution, or
6organization, other than a limited liability company, that is
7organized and operated as a not-for-profit service enterprise
8for the benefit of persons 65 years of age or older if the
9personal property was not purchased by the enterprise for the
10purpose of resale by the enterprise.
11 (2) Personal property purchased by a non-profit Illinois
12county fair association for use in conducting, operating, or
13promoting the county fair.
14 (3) Personal property purchased by a not-for-profit arts or
15cultural organization that establishes, by proof required by
16the Department by rule, that it has received an exemption under
17Section 501(c)(3) of the Internal Revenue Code and that is
18organized and operated primarily for the presentation or
19support of arts or cultural programming, activities, or
20services. These organizations include, but are not limited to,
21music and dramatic arts organizations such as symphony
22orchestras and theatrical groups, arts and cultural service
23organizations, local arts councils, visual arts organizations,
24and media arts organizations. On and after the effective date
25of this amendatory Act of the 92nd General Assembly, however,
26an entity otherwise eligible for this exemption shall not make

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1tax-free purchases unless it has an active identification
2number issued by the Department.
3 (4) Legal tender, currency, medallions, or gold or silver
4coinage issued by the State of Illinois, the government of the
5United States of America, or the government of any foreign
6country, and bullion.
7 (5) Until July 1, 2003 and beginning again on September 1,
82004 through August 30, 2014, graphic arts machinery and
9equipment, including repair and replacement parts, both new and
10used, and including that manufactured on special order or
11purchased for lease, certified by the purchaser to be used
12primarily for graphic arts production. Equipment includes
13chemicals or chemicals acting as catalysts but only if the
14chemicals or chemicals acting as catalysts effect a direct and
15immediate change upon a graphic arts product. Beginning on July
161, 2017, graphic arts machinery and equipment is included in
17the manufacturing and assembling machinery and equipment
18exemption under Section 2 of this Act.
19 (6) Personal property purchased from a teacher-sponsored
20student organization affiliated with an elementary or
21secondary school located in Illinois.
22 (7) Farm machinery and equipment, both new and used,
23including that manufactured on special order, certified by the
24purchaser to be used primarily for production agriculture or
25State or federal agricultural programs, including individual
26replacement parts for the machinery and equipment, including

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

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1to, the collection, monitoring, and correlation of animal and
2crop data for the purpose of formulating animal diets and
3agricultural chemicals. This item (7) is exempt from the
4provisions of Section 3-75.
5 (8) Until June 30, 2013, fuel and petroleum products sold
6to or used by an air common carrier, certified by the carrier
7to be used for consumption, shipment, or storage in the conduct
8of its business as an air common carrier, for a flight destined
9for or returning from a location or locations outside the
10United States without regard to previous or subsequent domestic
11stopovers.
12 Beginning July 1, 2013, fuel and petroleum products sold to
13or used by an air carrier, certified by the carrier to be used
14for consumption, shipment, or storage in the conduct of its
15business as an air common carrier, for a flight that (i) is
16engaged in foreign trade or is engaged in trade between the
17United States and any of its possessions and (ii) transports at
18least one individual or package for hire from the city of
19origination to the city of final destination on the same
20aircraft, without regard to a change in the flight number of
21that aircraft.
22 (9) Proceeds of mandatory service charges separately
23stated on customers' bills for the purchase and consumption of
24food and beverages acquired as an incident to the purchase of a
25service from a serviceman, to the extent that the proceeds of
26the service charge are in fact turned over as tips or as a

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

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1allowed on or after August 16, 2013 (the effective date of
2Public Act 98-456) for such taxes paid during the period
3beginning July 1, 2003 and ending on August 16, 2013 (the
4effective date of Public Act 98-456).
5 (13) Semen used for artificial insemination of livestock
6for direct agricultural production.
7 (14) Horses, or interests in horses, registered with and
8meeting the requirements of any of the Arabian Horse Club
9Registry of America, Appaloosa Horse Club, American Quarter
10Horse Association, United States Trotting Association, or
11Jockey Club, as appropriate, used for purposes of breeding or
12racing for prizes. This item (14) is exempt from the provisions
13of Section 3-75, and the exemption provided for under this item
14(14) applies for all periods beginning May 30, 1995, but no
15claim for credit or refund is allowed on or after the effective
16date of this amendatory Act of the 95th General Assembly for
17such taxes paid during the period beginning May 30, 2000 and
18ending on the effective date of this amendatory Act of the 95th
19General Assembly.
20 (15) Computers and communications equipment utilized for
21any hospital purpose and equipment used in the diagnosis,
22analysis, or treatment of hospital patients purchased by a
23lessor who leases the equipment, under a lease of one year or
24longer executed or in effect at the time the lessor would
25otherwise be subject to the tax imposed by this Act, to a
26hospital that has been issued an active tax exemption

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

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1non-qualifying use occurs. No lessor shall collect or attempt
2to collect an amount (however designated) that purports to
3reimburse that lessor for the tax imposed by this Act or the
4Use Tax Act, as the case may be, if the tax has not been paid by
5the lessor. If a lessor improperly collects any such amount
6from the lessee, the lessee shall have a legal right to claim a
7refund of that amount from the lessor. If, however, that amount
8is not refunded to the lessee for any reason, the lessor is
9liable to pay that amount to the Department.
10 (17) Beginning with taxable years ending on or after
11December 31, 1995 and ending with taxable years ending on or
12before December 31, 2004, personal property that is donated for
13disaster relief to be used in a State or federally declared
14disaster area in Illinois or bordering Illinois by a
15manufacturer or retailer that is registered in this State to a
16corporation, society, association, foundation, or institution
17that has been issued a sales tax exemption identification
18number by the Department that assists victims of the disaster
19who reside within the declared disaster area.
20 (18) Beginning with taxable years ending on or after
21December 31, 1995 and ending with taxable years ending on or
22before December 31, 2004, personal property that is used in the
23performance of infrastructure repairs in this State, including
24but not limited to municipal roads and streets, access roads,
25bridges, sidewalks, waste disposal systems, water and sewer
26line extensions, water distribution and purification

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1facilities, storm water drainage and retention facilities, and
2sewage treatment facilities, resulting from a State or
3federally declared disaster in Illinois or bordering Illinois
4when such repairs are initiated on facilities located in the
5declared disaster area within 6 months after the disaster.
6 (19) Beginning July 1, 1999, game or game birds purchased
7at a "game breeding and hunting preserve area" as that term is
8used in the Wildlife Code. This paragraph is exempt from the
9provisions of Section 3-75.
10 (20) A motor vehicle, as that term is defined in Section
111-146 of the Illinois Vehicle Code, that is donated to a
12corporation, limited liability company, society, association,
13foundation, or institution that is determined by the Department
14to be organized and operated exclusively for educational
15purposes. For purposes of this exemption, "a corporation,
16limited liability company, society, association, foundation,
17or institution organized and operated exclusively for
18educational purposes" means all tax-supported public schools,
19private schools that offer systematic instruction in useful
20branches of learning by methods common to public schools and
21that compare favorably in their scope and intensity with the
22course of study presented in tax-supported schools, and
23vocational or technical schools or institutes organized and
24operated exclusively to provide a course of study of not less
25than 6 weeks duration and designed to prepare individuals to
26follow a trade or to pursue a manual, technical, mechanical,

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1industrial, business, or commercial occupation.
2 (21) Beginning January 1, 2000, personal property,
3including food, purchased through fundraising events for the
4benefit of a public or private elementary or secondary school,
5a group of those schools, or one or more school districts if
6the events are sponsored by an entity recognized by the school
7district that consists primarily of volunteers and includes
8parents and teachers of the school children. This paragraph
9does not apply to fundraising events (i) for the benefit of
10private home instruction or (ii) for which the fundraising
11entity purchases the personal property sold at the events from
12another individual or entity that sold the property for the
13purpose of resale by the fundraising entity and that profits
14from the sale to the fundraising entity. This paragraph is
15exempt from the provisions of Section 3-75.
16 (22) Beginning January 1, 2000 and through December 31,
172001, new or used automatic vending machines that prepare and
18serve hot food and beverages, including coffee, soup, and other
19items, and replacement parts for these machines. Beginning
20January 1, 2002 and through June 30, 2003, machines and parts
21for machines used in commercial, coin-operated amusement and
22vending business if a use or occupation tax is paid on the
23gross receipts derived from the use of the commercial,
24coin-operated amusement and vending machines. This paragraph
25is exempt from the provisions of Section 3-75.
26 (23) Beginning August 23, 2001 and through June 30, 2016,

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1food for human consumption that is to be consumed off the
2premises where it is sold (other than alcoholic beverages, soft
3drinks, and food that has been prepared for immediate
4consumption) and prescription and nonprescription medicines,
5drugs, medical appliances, and insulin, urine testing
6materials, syringes, and needles used by diabetics, for human
7use, when purchased for use by a person receiving medical
8assistance under Article V of the Illinois Public Aid Code who
9resides in a licensed long-term care facility, as defined in
10the Nursing Home Care Act, or in a licensed facility as defined
11in the ID/DD Community Care Act, the MC/DD Act, or the
12Specialized Mental Health Rehabilitation Act of 2013.
13 (24) Beginning on the effective date of this amendatory Act
14of the 92nd General Assembly, computers and communications
15equipment utilized for any hospital purpose and equipment used
16in the diagnosis, analysis, or treatment of hospital patients
17purchased by a lessor who leases the equipment, under a lease
18of one year or longer executed or in effect at the time the
19lessor would otherwise be subject to the tax imposed by this
20Act, to a hospital that has been issued an active tax exemption
21identification number by the Department under Section 1g of the
22Retailers' Occupation Tax Act. If the equipment is leased in a
23manner that does not qualify for this exemption or is used in
24any other nonexempt manner, the lessor shall be liable for the
25tax imposed under this Act or the Use Tax Act, as the case may
26be, based on the fair market value of the property at the time

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

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1the lessor. If a lessor improperly collects any such amount
2from the lessee, the lessee shall have a legal right to claim a
3refund of that amount from the lessor. If, however, that amount
4is not refunded to the lessee for any reason, the lessor is
5liable to pay that amount to the Department. This paragraph is
6exempt from the provisions of Section 3-75.
7 (26) Beginning January 1, 2008, tangible personal property
8used in the construction or maintenance of a community water
9supply, as defined under Section 3.145 of the Environmental
10Protection Act, that is operated by a not-for-profit
11corporation that holds a valid water supply permit issued under
12Title IV of the Environmental Protection Act. This paragraph is
13exempt from the provisions of Section 3-75.
14 (27) Beginning January 1, 2010, materials, parts,
15equipment, components, and furnishings incorporated into or
16upon an aircraft as part of the modification, refurbishment,
17completion, replacement, repair, or maintenance of the
18aircraft. This exemption includes consumable supplies used in
19the modification, refurbishment, completion, replacement,
20repair, and maintenance of aircraft, but excludes any
21materials, parts, equipment, components, and consumable
22supplies used in the modification, replacement, repair, and
23maintenance of aircraft engines or power plants, whether such
24engines or power plants are installed or uninstalled upon any
25such aircraft. "Consumable supplies" include, but are not
26limited to, adhesive, tape, sandpaper, general purpose

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1lubricants, cleaning solution, latex gloves, and protective
2films. This exemption applies only to the use of qualifying
3tangible personal property transferred incident to the
4modification, refurbishment, completion, replacement, repair,
5or maintenance of aircraft by persons who (i) hold an Air
6Agency Certificate and are empowered to operate an approved
7repair station by the Federal Aviation Administration, (ii)
8have a Class IV Rating, and (iii) conduct operations in
9accordance with Part 145 of the Federal Aviation Regulations.
10The exemption does not include aircraft operated by a
11commercial air carrier providing scheduled passenger air
12service pursuant to authority issued under Part 121 or Part 129
13of the Federal Aviation Regulations. The changes made to this
14paragraph (27) by Public Act 98-534 are declarative of existing
15law.
16 (28) Tangible personal property purchased by a
17public-facilities corporation, as described in Section
1811-65-10 of the Illinois Municipal Code, for purposes of
19constructing or furnishing a municipal convention hall, but
20only if the legal title to the municipal convention hall is
21transferred to the municipality without any further
22consideration by or on behalf of the municipality at the time
23of the completion of the municipal convention hall or upon the
24retirement or redemption of any bonds or other debt instruments
25issued by the public-facilities corporation in connection with
26the development of the municipal convention hall. This

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1exemption includes existing public-facilities corporations as
2provided in Section 11-65-25 of the Illinois Municipal Code.
3This paragraph is exempt from the provisions of Section 3-75.
4 (29) Beginning January 1, 2017, menstrual pads, tampons,
5and menstrual cups.
6 (30) Tangible personal property transferred to a purchaser
7who is exempt from the tax imposed by this Act by operation of
8federal law. This paragraph is exempt from the provisions of
9Section 3-75.
10(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
11100-22, eff. 7-6-17.)
12 (35 ILCS 110/3-5.5)
13 Sec. 3-5.5. Food and drugs sold by not-for-profit
14organizations; exemption. The Department shall not collect the
151% tax imposed under this Act on food for human consumption
16that is to be consumed off the premises where it is sold (other
17than alcoholic beverages, soft drinks, and food that has been
18prepared for immediate consumption) and prescription and
19nonprescription medicines, drugs, medical appliances, and
20insulin, urine testing materials, syringes, and needles used by
21diabetics, for human use from any not-for-profit organization,
22that sells food in a food distribution program at a price below
23the retail cost of the food to purchasers who, as a condition
24of participation in the program, are required to perform
25community service, located in a county or municipality that

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1notifies the Department, in writing, that the county or
2municipality does not want the tax to be collected from any of
3such organizations located in the county or municipality.
4(Source: P.A. 88-374.)
5 (35 ILCS 110/9) (from Ch. 120, par. 439.39)
6 (Text of Section before amendment by P.A. 100-363)
7 Sec. 9. Each serviceman required or authorized to collect
8the tax herein imposed shall pay to the Department the amount
9of such tax (except as otherwise provided) at the time when he
10is required to file his return for the period during which such
11tax was collected, less a discount of 2.1% prior to January 1,
121990 and 1.75% on and after January 1, 1990, or $5 per calendar
13year, whichever is greater, which is allowed to reimburse the
14serviceman for expenses incurred in collecting the tax, keeping
15records, preparing and filing returns, remitting the tax and
16supplying data to the Department on request. The discount
17allowed under this Section is allowed only for returns that are
18filed in the manner required by this Act. The Department may
19disallow the discount for servicemen whose certificate of
20registration is revoked at the time the return is filed, but
21only if the Department's decision to revoke the certificate of
22registration has become final. A serviceman need not remit that
23part of any tax collected by him to the extent that he is
24required to pay and does pay the tax imposed by the Service
25Occupation Tax Act with respect to his sale of service

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1involving the incidental transfer by him of the same property.
2 Except as provided hereinafter in this Section, on or
3before the twentieth day of each calendar month, such
4serviceman shall file a return for the preceding calendar month
5in accordance with reasonable Rules and Regulations to be
6promulgated by the Department. Such return shall be filed on a
7form prescribed by the Department and shall contain such
8information as the Department may reasonably require. On and
9after January 1, 2018, with respect to servicemen whose annual
10gross receipts average $20,000 or more, all returns required to
11be filed pursuant to this Act shall be filed electronically.
12Servicemen who demonstrate that they do not have access to the
13Internet or demonstrate hardship in filing electronically may
14petition the Department to waive the electronic filing
15requirement.
16 The Department may require returns to be filed on a
17quarterly basis. If so required, a return for each calendar
18quarter shall be filed on or before the twentieth day of the
19calendar month following the end of such calendar quarter. The
20taxpayer shall also file a return with the Department for each
21of the first two months of each calendar quarter, on or before
22the twentieth day of the following calendar month, stating:
23 1. The name of the seller;
24 2. The address of the principal place of business from
25 which he engages in business as a serviceman in this State;
26 3. The total amount of taxable receipts received by him

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

SB3445 Enrolled- 123 -LRB100 20331 HLH 35618 b
1sum of the taxpayer's liabilities under this Act, and under all
2other State and local occupation and use tax laws administered
3by the Department, for the immediately preceding calendar year.
4The term "average monthly tax liability" means the sum of the
5taxpayer's liabilities under this Act, and under all other
6State and local occupation and use tax laws administered by the
7Department, for the immediately preceding calendar year
8divided by 12. Beginning on October 1, 2002, a taxpayer who has
9a tax liability in the amount set forth in subsection (b) of
10Section 2505-210 of the Department of Revenue Law shall make
11all payments required by rules of the Department by electronic
12funds transfer.
13 Before August 1 of each year beginning in 1993, the
14Department shall notify all taxpayers required to make payments
15by electronic funds transfer. All taxpayers required to make
16payments by electronic funds transfer shall make those payments
17for a minimum of one year beginning on October 1.
18 Any taxpayer not required to make payments by electronic
19funds transfer may make payments by electronic funds transfer
20with the permission of the Department.
21 All taxpayers required to make payment by electronic funds
22transfer and any taxpayers authorized to voluntarily make
23payments by electronic funds transfer shall make those payments
24in the manner authorized by the Department.
25 The Department shall adopt such rules as are necessary to
26effectuate a program of electronic funds transfer and the

SB3445 Enrolled- 124 -LRB100 20331 HLH 35618 b
1requirements of this Section.
2 If the serviceman is otherwise required to file a monthly
3return and if the serviceman's average monthly tax liability to
4the Department does not exceed $200, the Department may
5authorize his returns to be filed on a quarter annual basis,
6with the return for January, February and March of a given year
7being due by April 20 of such year; with the return for April,
8May and June of a given year being due by July 20 of such year;
9with the return for July, August and September of a given year
10being due by October 20 of such year, and with the return for
11October, November and December of a given year being due by
12January 20 of the following year.
13 If the serviceman is otherwise required to file a monthly
14or quarterly return and if the serviceman's average monthly tax
15liability to the Department does not exceed $50, the Department
16may authorize his returns to be filed on an annual basis, with
17the return for a given year being due by January 20 of the
18following year.
19 Such quarter annual and annual returns, as to form and
20substance, shall be subject to the same requirements as monthly
21returns.
22 Notwithstanding any other provision in this Act concerning
23the time within which a serviceman may file his return, in the
24case of any serviceman who ceases to engage in a kind of
25business which makes him responsible for filing returns under
26this Act, such serviceman shall file a final return under this

SB3445 Enrolled- 125 -LRB100 20331 HLH 35618 b
1Act with the Department not more than 1 month after
2discontinuing such business.
3 Where a serviceman collects the tax with respect to the
4selling price of property which he sells and the purchaser
5thereafter returns such property and the serviceman refunds the
6selling price thereof to the purchaser, such serviceman shall
7also refund, to the purchaser, the tax so collected from the
8purchaser. When filing his return for the period in which he
9refunds such tax to the purchaser, the serviceman may deduct
10the amount of the tax so refunded by him to the purchaser from
11any other Service Use Tax, Service Occupation Tax, retailers'
12occupation tax or use tax which such serviceman may be required
13to pay or remit to the Department, as shown by such return,
14provided that the amount of the tax to be deducted shall
15previously have been remitted to the Department by such
16serviceman. If the serviceman shall not previously have
17remitted the amount of such tax to the Department, he shall be
18entitled to no deduction hereunder upon refunding such tax to
19the purchaser.
20 Any serviceman filing a return hereunder shall also include
21the total tax upon the selling price of tangible personal
22property purchased for use by him as an incident to a sale of
23service, and such serviceman shall remit the amount of such tax
24to the Department when filing such return.
25 If experience indicates such action to be practicable, the
26Department may prescribe and furnish a combination or joint

SB3445 Enrolled- 126 -LRB100 20331 HLH 35618 b
1return which will enable servicemen, who are required to file
2returns hereunder and also under the Service Occupation Tax
3Act, to furnish all the return information required by both
4Acts on the one form.
5 Where the serviceman has more than one business registered
6with the Department under separate registration hereunder,
7such serviceman shall not file each return that is due as a
8single return covering all such registered businesses, but
9shall file separate returns for each such registered business.
10 Beginning January 1, 1990, each month the Department shall
11pay into the State and Local Tax Reform Fund, a special fund in
12the State Treasury, the net revenue realized for the preceding
13month from the 1% tax imposed under this Act on sales of food
14for human consumption which is to be consumed off the premises
15where it is sold (other than alcoholic beverages, soft drinks
16and food which has been prepared for immediate consumption) and
17prescription and nonprescription medicines, drugs, medical
18appliances, products classified as Class III medical devices,
19by the United States Food and Drug Administration that are used
20for cancer treatment pursuant to a prescription, as well as any
21accessories and components related to those devices, and
22insulin, urine testing materials, syringes and needles used by
23diabetics.
24 Beginning January 1, 1990, each month the Department shall
25pay into the State and Local Sales Tax Reform Fund 20% of the
26net revenue realized for the preceding month from the 6.25%

SB3445 Enrolled- 127 -LRB100 20331 HLH 35618 b
1general rate on transfers of tangible personal property, other
2than tangible personal property which is purchased outside
3Illinois at retail from a retailer and which is titled or
4registered by an agency of this State's government.
5 Beginning August 1, 2000, each month the Department shall
6pay into the State and Local Sales Tax Reform Fund 100% of the
7net revenue realized for the preceding month from the 1.25%
8rate on the selling price of motor fuel and gasohol.
9 Beginning October 1, 2009, each month the Department shall
10pay into the Capital Projects Fund an amount that is equal to
11an amount estimated by the Department to represent 80% of the
12net revenue realized for the preceding month from the sale of
13candy, grooming and hygiene products, and soft drinks that had
14been taxed at a rate of 1% prior to September 1, 2009 but that
15are now taxed at 6.25%.
16 Beginning July 1, 2013, each month the Department shall pay
17into the Underground Storage Tank Fund from the proceeds
18collected under this Act, the Use Tax Act, the Service
19Occupation Tax Act, and the Retailers' Occupation Tax Act an
20amount equal to the average monthly deficit in the Underground
21Storage Tank Fund during the prior year, as certified annually
22by the Illinois Environmental Protection Agency, but the total
23payment into the Underground Storage Tank Fund under this Act,
24the Use Tax Act, the Service Occupation Tax Act, and the
25Retailers' Occupation Tax Act shall not exceed $18,000,000 in
26any State fiscal year. As used in this paragraph, the "average

SB3445 Enrolled- 128 -LRB100 20331 HLH 35618 b
1monthly deficit" shall be equal to the difference between the
2average monthly claims for payment by the fund and the average
3monthly revenues deposited into the fund, excluding payments
4made pursuant to this paragraph.
5 Beginning July 1, 2015, of the remainder of the moneys
6received by the Department under the Use Tax Act, this Act, the
7Service Occupation Tax Act, and the Retailers' Occupation Tax
8Act, each month the Department shall deposit $500,000 into the
9State Crime Laboratory Fund.
10 Of the remainder of the moneys received by the Department
11pursuant to this Act, (a) 1.75% thereof shall be paid into the
12Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
13and after July 1, 1989, 3.8% thereof shall be paid into the
14Build Illinois Fund; provided, however, that if in any fiscal
15year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
16may be, of the moneys received by the Department and required
17to be paid into the Build Illinois Fund pursuant to Section 3
18of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
19Act, Section 9 of the Service Use Tax Act, and Section 9 of the
20Service Occupation Tax Act, such Acts being hereinafter called
21the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
22may be, of moneys being hereinafter called the "Tax Act
23Amount", and (2) the amount transferred to the Build Illinois
24Fund from the State and Local Sales Tax Reform Fund shall be
25less than the Annual Specified Amount (as defined in Section 3
26of the Retailers' Occupation Tax Act), an amount equal to the

SB3445 Enrolled- 129 -LRB100 20331 HLH 35618 b
1difference shall be immediately paid into the Build Illinois
2Fund from other moneys received by the Department pursuant to
3the Tax Acts; and further provided, that if on the last
4business day of any month the sum of (1) the Tax Act Amount
5required to be deposited into the Build Illinois Bond Account
6in the Build Illinois Fund during such month and (2) the amount
7transferred during such month to the Build Illinois Fund from
8the State and Local Sales Tax Reform Fund shall have been less
9than 1/12 of the Annual Specified Amount, an amount equal to
10the difference shall be immediately paid into the Build
11Illinois Fund from other moneys received by the Department
12pursuant to the Tax Acts; and, further provided, that in no
13event shall the payments required under the preceding proviso
14result in aggregate payments into the Build Illinois Fund
15pursuant to this clause (b) for any fiscal year in excess of
16the greater of (i) the Tax Act Amount or (ii) the Annual
17Specified Amount for such fiscal year; and, further provided,
18that the amounts payable into the Build Illinois Fund under
19this clause (b) shall be payable only until such time as the
20aggregate amount on deposit under each trust indenture securing
21Bonds issued and outstanding pursuant to the Build Illinois
22Bond Act is sufficient, taking into account any future
23investment income, to fully provide, in accordance with such
24indenture, for the defeasance of or the payment of the
25principal of, premium, if any, and interest on the Bonds
26secured by such indenture and on any Bonds expected to be

SB3445 Enrolled- 130 -LRB100 20331 HLH 35618 b
1issued thereafter and all fees and costs payable with respect
2thereto, all as certified by the Director of the Bureau of the
3Budget (now Governor's Office of Management and Budget). If on
4the last business day of any month in which Bonds are
5outstanding pursuant to the Build Illinois Bond Act, the
6aggregate of the moneys deposited in the Build Illinois Bond
7Account in the Build Illinois Fund in such month shall be less
8than the amount required to be transferred in such month from
9the Build Illinois Bond Account to the Build Illinois Bond
10Retirement and Interest Fund pursuant to Section 13 of the
11Build Illinois Bond Act, an amount equal to such deficiency
12shall be immediately paid from other moneys received by the
13Department pursuant to the Tax Acts to the Build Illinois Fund;
14provided, however, that any amounts paid to the Build Illinois
15Fund in any fiscal year pursuant to this sentence shall be
16deemed to constitute payments pursuant to clause (b) of the
17preceding sentence and shall reduce the amount otherwise
18payable for such fiscal year pursuant to clause (b) of the
19preceding sentence. The moneys received by the Department
20pursuant to this Act and required to be deposited into the
21Build Illinois Fund are subject to the pledge, claim and charge
22set forth in Section 12 of the Build Illinois Bond Act.
23 Subject to payment of amounts into the Build Illinois Fund
24as provided in the preceding paragraph or in any amendment
25thereto hereafter enacted, the following specified monthly
26installment of the amount requested in the certificate of the

SB3445 Enrolled- 131 -LRB100 20331 HLH 35618 b
1Chairman of the Metropolitan Pier and Exposition Authority
2provided under Section 8.25f of the State Finance Act, but not
3in excess of the sums designated as "Total Deposit", shall be
4deposited in the aggregate from collections under Section 9 of
5the Use Tax Act, Section 9 of the Service Use Tax Act, Section
69 of the Service Occupation Tax Act, and Section 3 of the
7Retailers' Occupation Tax Act into the McCormick Place
8Expansion Project Fund in the specified fiscal years.
9Fiscal YearTotal Deposit
101993 $0
111994 53,000,000
121995 58,000,000
131996 61,000,000
141997 64,000,000
151998 68,000,000
161999 71,000,000
172000 75,000,000
182001 80,000,000
192002 93,000,000
202003 99,000,000
212004103,000,000
222005108,000,000
232006113,000,000
242007119,000,000
252008126,000,000

SB3445 Enrolled- 132 -LRB100 20331 HLH 35618 b
12009132,000,000
22010139,000,000
32011146,000,000
42012153,000,000
52013161,000,000
62014170,000,000
72015179,000,000
82016189,000,000
92017199,000,000
102018210,000,000
112019221,000,000
122020233,000,000
132021246,000,000
142022260,000,000
152023275,000,000
162024 275,000,000
172025 275,000,000
182026 279,000,000
192027 292,000,000
202028 307,000,000
212029 322,000,000
222030 338,000,000
232031 350,000,000
242032 350,000,000
25and
26each fiscal year

SB3445 Enrolled- 133 -LRB100 20331 HLH 35618 b
1thereafter that bonds
2are outstanding under
3Section 13.2 of the
4Metropolitan Pier and
5Exposition Authority Act,
6but not after fiscal year 2060.
7 Beginning July 20, 1993 and in each month of each fiscal
8year thereafter, one-eighth of the amount requested in the
9certificate of the Chairman of the Metropolitan Pier and
10Exposition Authority for that fiscal year, less the amount
11deposited into the McCormick Place Expansion Project Fund by
12the State Treasurer in the respective month under subsection
13(g) of Section 13 of the Metropolitan Pier and Exposition
14Authority Act, plus cumulative deficiencies in the deposits
15required under this Section for previous months and years,
16shall be deposited into the McCormick Place Expansion Project
17Fund, until the full amount requested for the fiscal year, but
18not in excess of the amount specified above as "Total Deposit",
19has been deposited.
20 Subject to payment of amounts into the Build Illinois Fund
21and the McCormick Place Expansion Project Fund pursuant to the
22preceding paragraphs or in any amendments thereto hereafter
23enacted, beginning July 1, 1993 and ending on September 30,
242013, the Department shall each month pay into the Illinois Tax
25Increment Fund 0.27% of 80% of the net revenue realized for the
26preceding month from the 6.25% general rate on the selling

SB3445 Enrolled- 134 -LRB100 20331 HLH 35618 b
1price of tangible personal property.
2 Subject to payment of amounts into the Build Illinois Fund
3and the McCormick Place Expansion Project Fund pursuant to the
4preceding paragraphs or in any amendments thereto hereafter
5enacted, beginning with the receipt of the first report of
6taxes paid by an eligible business and continuing for a 25-year
7period, the Department shall each month pay into the Energy
8Infrastructure Fund 80% of the net revenue realized from the
96.25% general rate on the selling price of Illinois-mined coal
10that was sold to an eligible business. For purposes of this
11paragraph, the term "eligible business" means a new electric
12generating facility certified pursuant to Section 605-332 of
13the Department of Commerce and Economic Opportunity Law of the
14Civil Administrative Code of Illinois.
15 Subject to payment of amounts into the Build Illinois Fund,
16the McCormick Place Expansion Project Fund, the Illinois Tax
17Increment Fund, and the Energy Infrastructure Fund pursuant to
18the preceding paragraphs or in any amendments to this Section
19hereafter enacted, beginning on the first day of the first
20calendar month to occur on or after August 26, 2014 (the
21effective date of Public Act 98-1098) this amendatory Act of
22the 98th General Assembly, each month, from the collections
23made under Section 9 of the Use Tax Act, Section 9 of the
24Service Use Tax Act, Section 9 of the Service Occupation Tax
25Act, and Section 3 of the Retailers' Occupation Tax Act, the
26Department shall pay into the Tax Compliance and Administration

SB3445 Enrolled- 135 -LRB100 20331 HLH 35618 b
1Fund, to be used, subject to appropriation, to fund additional
2auditors and compliance personnel at the Department of Revenue,
3an amount equal to 1/12 of 5% of 80% of the cash receipts
4collected during the preceding fiscal year by the Audit Bureau
5of the Department under the Use Tax Act, the Service Use Tax
6Act, the Service Occupation Tax Act, the Retailers' Occupation
7Tax Act, and associated local occupation and use taxes
8administered by the Department.
9 Of the remainder of the moneys received by the Department
10pursuant to this Act, 75% thereof shall be paid into the
11General Revenue Fund of the State Treasury and 25% shall be
12reserved in a special account and used only for the transfer to
13the Common School Fund as part of the monthly transfer from the
14General Revenue Fund in accordance with Section 8a of the State
15Finance Act.
16 As soon as possible after the first day of each month, upon
17certification of the Department of Revenue, the Comptroller
18shall order transferred and the Treasurer shall transfer from
19the General Revenue Fund to the Motor Fuel Tax Fund an amount
20equal to 1.7% of 80% of the net revenue realized under this Act
21for the second preceding month. Beginning April 1, 2000, this
22transfer is no longer required and shall not be made.
23 Net revenue realized for a month shall be the revenue
24collected by the State pursuant to this Act, less the amount
25paid out during that month as refunds to taxpayers for
26overpayment of liability.

SB3445 Enrolled- 136 -LRB100 20331 HLH 35618 b
1(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
2100-303, eff. 8-24-17; revised 1-22-18.)
3 (Text of Section after amendment by P.A. 100-363)
4 Sec. 9. Each serviceman required or authorized to collect
5the tax herein imposed shall pay to the Department the amount
6of such tax (except as otherwise provided) at the time when he
7is required to file his return for the period during which such
8tax was collected, less a discount of 2.1% prior to January 1,
91990 and 1.75% on and after January 1, 1990, or $5 per calendar
10year, whichever is greater, which is allowed to reimburse the
11serviceman for expenses incurred in collecting the tax, keeping
12records, preparing and filing returns, remitting the tax and
13supplying data to the Department on request. The discount
14allowed under this Section is allowed only for returns that are
15filed in the manner required by this Act. The Department may
16disallow the discount for servicemen whose certificate of
17registration is revoked at the time the return is filed, but
18only if the Department's decision to revoke the certificate of
19registration has become final. A serviceman need not remit that
20part of any tax collected by him to the extent that he is
21required to pay and does pay the tax imposed by the Service
22Occupation Tax Act with respect to his sale of service
23involving the incidental transfer by him of the same property.
24 Except as provided hereinafter in this Section, on or
25before the twentieth day of each calendar month, such

SB3445 Enrolled- 137 -LRB100 20331 HLH 35618 b
1serviceman shall file a return for the preceding calendar month
2in accordance with reasonable Rules and Regulations to be
3promulgated by the Department. Such return shall be filed on a
4form prescribed by the Department and shall contain such
5information as the Department may reasonably require. On and
6after January 1, 2018, with respect to servicemen whose annual
7gross receipts average $20,000 or more, all returns required to
8be filed pursuant to this Act shall be filed electronically.
9Servicemen who demonstrate that they do not have access to the
10Internet or demonstrate hardship in filing electronically may
11petition the Department to waive the electronic filing
12requirement.
13 The Department may require returns to be filed on a
14quarterly basis. If so required, a return for each calendar
15quarter shall be filed on or before the twentieth day of the
16calendar month following the end of such calendar quarter. The
17taxpayer shall also file a return with the Department for each
18of the first two months of each calendar quarter, on or before
19the twentieth day of the following calendar month, stating:
20 1. The name of the seller;
21 2. The address of the principal place of business from
22 which he engages in business as a serviceman in this State;
23 3. The total amount of taxable receipts received by him
24 during the preceding calendar month, including receipts
25 from charge and time sales, but less all deductions allowed
26 by law;

SB3445 Enrolled- 138 -LRB100 20331 HLH 35618 b
1 4. The amount of credit provided in Section 2d of this
2 Act;
3 5. The amount of tax due;
4 5-5. The signature of the taxpayer; and
5 6. Such other reasonable information as the Department
6 may require.
7 If a taxpayer fails to sign a return within 30 days after
8the proper notice and demand for signature by the Department,
9the return shall be considered valid and any amount shown to be
10due on the return shall be deemed assessed.
11 Beginning October 1, 1993, a taxpayer who has an average
12monthly tax liability of $150,000 or more shall make all
13payments required by rules of the Department by electronic
14funds transfer. Beginning October 1, 1994, a taxpayer who has
15an average monthly tax liability of $100,000 or more shall make
16all payments required by rules of the Department by electronic
17funds transfer. Beginning October 1, 1995, a taxpayer who has
18an average monthly tax liability of $50,000 or more shall make
19all payments required by rules of the Department by electronic
20funds transfer. Beginning October 1, 2000, a taxpayer who has
21an annual tax liability of $200,000 or more shall make all
22payments required by rules of the Department by electronic
23funds transfer. The term "annual tax liability" shall be the
24sum of the taxpayer's liabilities under this Act, and under all
25other State and local occupation and use tax laws administered
26by the Department, for the immediately preceding calendar year.

SB3445 Enrolled- 139 -LRB100 20331 HLH 35618 b
1The term "average monthly tax liability" means the sum of the
2taxpayer's liabilities under this Act, and under all other
3State and local occupation and use tax laws administered by the
4Department, for the immediately preceding calendar year
5divided by 12. Beginning on October 1, 2002, a taxpayer who has
6a tax liability in the amount set forth in subsection (b) of
7Section 2505-210 of the Department of Revenue Law shall make
8all payments required by rules of the Department by electronic
9funds transfer.
10 Before August 1 of each year beginning in 1993, the
11Department shall notify all taxpayers required to make payments
12by electronic funds transfer. All taxpayers required to make
13payments by electronic funds transfer shall make those payments
14for a minimum of one year beginning on October 1.
15 Any taxpayer not required to make payments by electronic
16funds transfer may make payments by electronic funds transfer
17with the permission of the Department.
18 All taxpayers required to make payment by electronic funds
19transfer and any taxpayers authorized to voluntarily make
20payments by electronic funds transfer shall make those payments
21in the manner authorized by the Department.
22 The Department shall adopt such rules as are necessary to
23effectuate a program of electronic funds transfer and the
24requirements of this Section.
25 If the serviceman is otherwise required to file a monthly
26return and if the serviceman's average monthly tax liability to

SB3445 Enrolled- 140 -LRB100 20331 HLH 35618 b
1the Department does not exceed $200, the Department may
2authorize his returns to be filed on a quarter annual basis,
3with the return for January, February and March of a given year
4being due by April 20 of such year; with the return for April,
5May and June of a given year being due by July 20 of such year;
6with the return for July, August and September of a given year
7being due by October 20 of such year, and with the return for
8October, November and December of a given year being due by
9January 20 of the following year.
10 If the serviceman is otherwise required to file a monthly
11or quarterly return and if the serviceman's average monthly tax
12liability to the Department does not exceed $50, the Department
13may authorize his returns to be filed on an annual basis, with
14the return for a given year being due by January 20 of the
15following year.
16 Such quarter annual and annual returns, as to form and
17substance, shall be subject to the same requirements as monthly
18returns.
19 Notwithstanding any other provision in this Act concerning
20the time within which a serviceman may file his return, in the
21case of any serviceman who ceases to engage in a kind of
22business which makes him responsible for filing returns under
23this Act, such serviceman shall file a final return under this
24Act with the Department not more than 1 month after
25discontinuing such business.
26 Where a serviceman collects the tax with respect to the

SB3445 Enrolled- 141 -LRB100 20331 HLH 35618 b
1selling price of property which he sells and the purchaser
2thereafter returns such property and the serviceman refunds the
3selling price thereof to the purchaser, such serviceman shall
4also refund, to the purchaser, the tax so collected from the
5purchaser. When filing his return for the period in which he
6refunds such tax to the purchaser, the serviceman may deduct
7the amount of the tax so refunded by him to the purchaser from
8any other Service Use Tax, Service Occupation Tax, retailers'
9occupation tax or use tax which such serviceman may be required
10to pay or remit to the Department, as shown by such return,
11provided that the amount of the tax to be deducted shall
12previously have been remitted to the Department by such
13serviceman. If the serviceman shall not previously have
14remitted the amount of such tax to the Department, he shall be
15entitled to no deduction hereunder upon refunding such tax to
16the purchaser.
17 Any serviceman filing a return hereunder shall also include
18the total tax upon the selling price of tangible personal
19property purchased for use by him as an incident to a sale of
20service, and such serviceman shall remit the amount of such tax
21to the Department when filing such return.
22 If experience indicates such action to be practicable, the
23Department may prescribe and furnish a combination or joint
24return which will enable servicemen, who are required to file
25returns hereunder and also under the Service Occupation Tax
26Act, to furnish all the return information required by both

SB3445 Enrolled- 142 -LRB100 20331 HLH 35618 b
1Acts on the one form.
2 Where the serviceman has more than one business registered
3with the Department under separate registration hereunder,
4such serviceman shall not file each return that is due as a
5single return covering all such registered businesses, but
6shall file separate returns for each such registered business.
7 Beginning January 1, 1990, each month the Department shall
8pay into the State and Local Tax Reform Fund, a special fund in
9the State Treasury, the net revenue realized for the preceding
10month from the 1% tax imposed under this Act on sales of food
11for human consumption which is to be consumed off the premises
12where it is sold (other than alcoholic beverages, soft drinks
13and food which has been prepared for immediate consumption) and
14prescription and nonprescription medicines, drugs, medical
15appliances, products classified as Class III medical devices,
16by the United States Food and Drug Administration that are used
17for cancer treatment pursuant to a prescription, as well as any
18accessories and components related to those devices, and
19insulin, urine testing materials, syringes and needles used by
20diabetics.
21 Beginning January 1, 1990, each month the Department shall
22pay into the State and Local Sales Tax Reform Fund 20% of the
23net revenue realized for the preceding month from the 6.25%
24general rate on transfers of tangible personal property, other
25than tangible personal property which is purchased outside
26Illinois at retail from a retailer and which is titled or

SB3445 Enrolled- 143 -LRB100 20331 HLH 35618 b
1registered by an agency of this State's government.
2 Beginning August 1, 2000, each month the Department shall
3pay into the State and Local Sales Tax Reform Fund 100% of the
4net revenue realized for the preceding month from the 1.25%
5rate on the selling price of motor fuel and gasohol.
6 Beginning October 1, 2009, each month the Department shall
7pay into the Capital Projects Fund an amount that is equal to
8an amount estimated by the Department to represent 80% of the
9net revenue realized for the preceding month from the sale of
10candy, grooming and hygiene products, and soft drinks that had
11been taxed at a rate of 1% prior to September 1, 2009 but that
12are now taxed at 6.25%.
13 Beginning July 1, 2013, each month the Department shall pay
14into the Underground Storage Tank Fund from the proceeds
15collected under this Act, the Use Tax Act, the Service
16Occupation Tax Act, and the Retailers' Occupation Tax Act an
17amount equal to the average monthly deficit in the Underground
18Storage Tank Fund during the prior year, as certified annually
19by the Illinois Environmental Protection Agency, but the total
20payment into the Underground Storage Tank Fund under this Act,
21the Use Tax Act, the Service Occupation Tax Act, and the
22Retailers' Occupation Tax Act shall not exceed $18,000,000 in
23any State fiscal year. As used in this paragraph, the "average
24monthly deficit" shall be equal to the difference between the
25average monthly claims for payment by the fund and the average
26monthly revenues deposited into the fund, excluding payments

SB3445 Enrolled- 144 -LRB100 20331 HLH 35618 b
1made pursuant to this paragraph.
2 Beginning July 1, 2015, of the remainder of the moneys
3received by the Department under the Use Tax Act, this Act, the
4Service Occupation Tax Act, and the Retailers' Occupation Tax
5Act, each month the Department shall deposit $500,000 into the
6State Crime Laboratory Fund.
7 Of the remainder of the moneys received by the Department
8pursuant to this Act, (a) 1.75% thereof shall be paid into the
9Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
10and after July 1, 1989, 3.8% thereof shall be paid into the
11Build Illinois Fund; provided, however, that if in any fiscal
12year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
13may be, of the moneys received by the Department and required
14to be paid into the Build Illinois Fund pursuant to Section 3
15of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
16Act, Section 9 of the Service Use Tax Act, and Section 9 of the
17Service Occupation Tax Act, such Acts being hereinafter called
18the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
19may be, of moneys being hereinafter called the "Tax Act
20Amount", and (2) the amount transferred to the Build Illinois
21Fund from the State and Local Sales Tax Reform Fund shall be
22less than the Annual Specified Amount (as defined in Section 3
23of the Retailers' Occupation Tax Act), an amount equal to the
24difference shall be immediately paid into the Build Illinois
25Fund from other moneys received by the Department pursuant to
26the Tax Acts; and further provided, that if on the last

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

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1the last business day of any month in which Bonds are
2outstanding pursuant to the Build Illinois Bond Act, the
3aggregate of the moneys deposited in the Build Illinois Bond
4Account in the Build Illinois Fund in such month shall be less
5than the amount required to be transferred in such month from
6the Build Illinois Bond Account to the Build Illinois Bond
7Retirement and Interest Fund pursuant to Section 13 of the
8Build Illinois Bond Act, an amount equal to such deficiency
9shall be immediately paid from other moneys received by the
10Department pursuant to the Tax Acts to the Build Illinois Fund;
11provided, however, that any amounts paid to the Build Illinois
12Fund in any fiscal year pursuant to this sentence shall be
13deemed to constitute payments pursuant to clause (b) of the
14preceding sentence and shall reduce the amount otherwise
15payable for such fiscal year pursuant to clause (b) of the
16preceding sentence. The moneys received by the Department
17pursuant to this Act and required to be deposited into the
18Build Illinois Fund are subject to the pledge, claim and charge
19set forth in Section 12 of the Build Illinois Bond Act.
20 Subject to payment of amounts into the Build Illinois Fund
21as provided in the preceding paragraph or in any amendment
22thereto hereafter enacted, the following specified monthly
23installment of the amount requested in the certificate of the
24Chairman of the Metropolitan Pier and Exposition Authority
25provided under Section 8.25f of the State Finance Act, but not
26in excess of the sums designated as "Total Deposit", shall be

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

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12012153,000,000
22013161,000,000
32014170,000,000
42015179,000,000
52016189,000,000
62017199,000,000
72018210,000,000
82019221,000,000
92020233,000,000
102021246,000,000
112022260,000,000
122023275,000,000
132024 275,000,000
142025 275,000,000
152026 279,000,000
162027 292,000,000
172028 307,000,000
182029 322,000,000
192030 338,000,000
202031 350,000,000
212032 350,000,000
22and
23each fiscal year
24thereafter that bonds
25are outstanding under
26Section 13.2 of the

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1Metropolitan Pier and
2Exposition Authority Act,
3but not after fiscal year 2060.
4 Beginning July 20, 1993 and in each month of each fiscal
5year thereafter, one-eighth of the amount requested in the
6certificate of the Chairman of the Metropolitan Pier and
7Exposition Authority for that fiscal year, less the amount
8deposited into the McCormick Place Expansion Project Fund by
9the State Treasurer in the respective month under subsection
10(g) of Section 13 of the Metropolitan Pier and Exposition
11Authority Act, plus cumulative deficiencies in the deposits
12required under this Section for previous months and years,
13shall be deposited into the McCormick Place Expansion Project
14Fund, until the full amount requested for the fiscal year, but
15not in excess of the amount specified above as "Total Deposit",
16has been deposited.
17 Subject to payment of amounts into the Build Illinois Fund
18and the McCormick Place Expansion Project Fund pursuant to the
19preceding paragraphs or in any amendments thereto hereafter
20enacted, beginning July 1, 1993 and ending on September 30,
212013, the Department shall each month pay into the Illinois Tax
22Increment Fund 0.27% of 80% of the net revenue realized for the
23preceding month from the 6.25% general rate on the selling
24price of tangible personal property.
25 Subject to payment of amounts into the Build Illinois Fund
26and the McCormick Place Expansion Project Fund pursuant to the

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1preceding paragraphs or in any amendments thereto hereafter
2enacted, beginning with the receipt of the first report of
3taxes paid by an eligible business and continuing for a 25-year
4period, the Department shall each month pay into the Energy
5Infrastructure Fund 80% of the net revenue realized from the
66.25% general rate on the selling price of Illinois-mined coal
7that was sold to an eligible business. For purposes of this
8paragraph, the term "eligible business" means a new electric
9generating facility certified pursuant to Section 605-332 of
10the Department of Commerce and Economic Opportunity Law of the
11Civil Administrative Code of Illinois.
12 Subject to payment of amounts into the Build Illinois Fund,
13the McCormick Place Expansion Project Fund, the Illinois Tax
14Increment Fund, and the Energy Infrastructure Fund pursuant to
15the preceding paragraphs or in any amendments to this Section
16hereafter enacted, beginning on the first day of the first
17calendar month to occur on or after August 26, 2014 (the
18effective date of Public Act 98-1098) this amendatory Act of
19the 98th General Assembly, each month, from the collections
20made under Section 9 of the Use Tax Act, Section 9 of the
21Service Use Tax Act, Section 9 of the Service Occupation Tax
22Act, and Section 3 of the Retailers' Occupation Tax Act, the
23Department shall pay into the Tax Compliance and Administration
24Fund, to be used, subject to appropriation, to fund additional
25auditors and compliance personnel at the Department of Revenue,
26an amount equal to 1/12 of 5% of 80% of the cash receipts

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1collected during the preceding fiscal year by the Audit Bureau
2of the Department under the Use Tax Act, the Service Use Tax
3Act, the Service Occupation Tax Act, the Retailers' Occupation
4Tax Act, and associated local occupation and use taxes
5administered by the Department.
6 Subject to payments of amounts into the Build Illinois
7Fund, the McCormick Place Expansion Project Fund, the Illinois
8Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
9Compliance and Administration Fund as provided in this Section,
10beginning on July 1, 2018 the Department shall pay each month
11into the Downstate Public Transportation Fund the moneys
12required to be so paid under Section 2-3 of the Downstate
13Public Transportation Act.
14 Of the remainder of the moneys received by the Department
15pursuant to this Act, 75% thereof shall be paid into the
16General Revenue Fund of the State Treasury and 25% shall be
17reserved in a special account and used only for the transfer to
18the Common School Fund as part of the monthly transfer from the
19General Revenue Fund in accordance with Section 8a of the State
20Finance Act.
21 As soon as possible after the first day of each month, upon
22certification of the Department of Revenue, the Comptroller
23shall order transferred and the Treasurer shall transfer from
24the General Revenue Fund to the Motor Fuel Tax Fund an amount
25equal to 1.7% of 80% of the net revenue realized under this Act
26for the second preceding month. Beginning April 1, 2000, this

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1transfer is no longer required and shall not be made.
2 Net revenue realized for a month shall be the revenue
3collected by the State pursuant to this Act, less the amount
4paid out during that month as refunds to taxpayers for
5overpayment of liability.
6(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
7100-303, eff. 8-24-17; 100-363, eff. 7-1-18; revised 1-22-18.)
8 Section 40. The Service Occupation Tax Act is amended by
9changing Sections 3-5, 3-5.5 and 9 as follows:
10 (35 ILCS 115/3-5)
11 Sec. 3-5. Exemptions. The following tangible personal
12property is exempt from the tax imposed by this Act:
13 (1) Personal property sold by a corporation, society,
14association, foundation, institution, or organization, other
15than a limited liability company, that is organized and
16operated as a not-for-profit service enterprise for the benefit
17of persons 65 years of age or older if the personal property
18was not purchased by the enterprise for the purpose of resale
19by the enterprise.
20 (2) Personal property purchased by a not-for-profit
21Illinois county fair association for use in conducting,
22operating, or promoting the county fair.
23 (3) Personal property purchased by any not-for-profit arts
24or cultural organization that establishes, by proof required by

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1the Department by rule, that it has received an exemption under
2Section 501(c)(3) of the Internal Revenue Code and that is
3organized and operated primarily for the presentation or
4support of arts or cultural programming, activities, or
5services. These organizations include, but are not limited to,
6music and dramatic arts organizations such as symphony
7orchestras and theatrical groups, arts and cultural service
8organizations, local arts councils, visual arts organizations,
9and media arts organizations. On and after the effective date
10of this amendatory Act of the 92nd General Assembly, however,
11an entity otherwise eligible for this exemption shall not make
12tax-free purchases unless it has an active identification
13number issued by the Department.
14 (4) Legal tender, currency, medallions, or gold or silver
15coinage issued by the State of Illinois, the government of the
16United States of America, or the government of any foreign
17country, and bullion.
18 (5) Until July 1, 2003 and beginning again on September 1,
192004 through August 30, 2014, graphic arts machinery and
20equipment, including repair and replacement parts, both new and
21used, and including that manufactured on special order or
22purchased for lease, certified by the purchaser to be used
23primarily for graphic arts production. Equipment includes
24chemicals or chemicals acting as catalysts but only if the
25chemicals or chemicals acting as catalysts effect a direct and
26immediate change upon a graphic arts product. Beginning on July

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11, 2017, graphic arts machinery and equipment is included in
2the manufacturing and assembling machinery and equipment
3exemption under Section 2 of this Act.
4 (6) Personal property sold by a teacher-sponsored student
5organization affiliated with an elementary or secondary school
6located in Illinois.
7 (7) Farm machinery and equipment, both new and used,
8including that manufactured on special order, certified by the
9purchaser to be used primarily for production agriculture or
10State or federal agricultural programs, including individual
11replacement parts for the machinery and equipment, including
12machinery and equipment purchased for lease, and including
13implements of husbandry defined in Section 1-130 of the
14Illinois Vehicle Code, farm machinery and agricultural
15chemical and fertilizer spreaders, and nurse wagons required to
16be registered under Section 3-809 of the Illinois Vehicle Code,
17but excluding other motor vehicles required to be registered
18under the Illinois Vehicle Code. Horticultural polyhouses or
19hoop houses used for propagating, growing, or overwintering
20plants shall be considered farm machinery and equipment under
21this item (7). Agricultural chemical tender tanks and dry boxes
22shall include units sold separately from a motor vehicle
23required to be licensed and units sold mounted on a motor
24vehicle required to be licensed if the selling price of the
25tender is separately stated.
26 Farm machinery and equipment shall include precision

SB3445 Enrolled- 155 -LRB100 20331 HLH 35618 b
1farming equipment that is installed or purchased to be
2installed on farm machinery and equipment including, but not
3limited to, tractors, harvesters, sprayers, planters, seeders,
4or spreaders. Precision farming equipment includes, but is not
5limited to, soil testing sensors, computers, monitors,
6software, global positioning and mapping systems, and other
7such equipment.
8 Farm machinery and equipment also includes computers,
9sensors, software, and related equipment used primarily in the
10computer-assisted operation of production agriculture
11facilities, equipment, and activities such as, but not limited
12to, the collection, monitoring, and correlation of animal and
13crop data for the purpose of formulating animal diets and
14agricultural chemicals. This item (7) is exempt from the
15provisions of Section 3-55.
16 (8) Until June 30, 2013, fuel and petroleum products sold
17to or used by an air common carrier, certified by the carrier
18to be used for consumption, shipment, or storage in the conduct
19of its business as an air common carrier, for a flight destined
20for or returning from a location or locations outside the
21United States without regard to previous or subsequent domestic
22stopovers.
23 Beginning July 1, 2013, fuel and petroleum products sold to
24or used by an air carrier, certified by the carrier to be used
25for consumption, shipment, or storage in the conduct of its
26business as an air common carrier, for a flight that (i) is

SB3445 Enrolled- 156 -LRB100 20331 HLH 35618 b
1engaged in foreign trade or is engaged in trade between the
2United States and any of its possessions and (ii) transports at
3least one individual or package for hire from the city of
4origination to the city of final destination on the same
5aircraft, without regard to a change in the flight number of
6that aircraft.
7 (9) Proceeds of mandatory service charges separately
8stated on customers' bills for the purchase and consumption of
9food and beverages, to the extent that the proceeds of the
10service charge are in fact turned over as tips or as a
11substitute for tips to the employees who participate directly
12in preparing, serving, hosting or cleaning up the food or
13beverage function with respect to which the service charge is
14imposed.
15 (10) Until July 1, 2003, oil field exploration, drilling,
16and production equipment, including (i) rigs and parts of rigs,
17rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
18tubular goods, including casing and drill strings, (iii) pumps
19and pump-jack units, (iv) storage tanks and flow lines, (v) any
20individual replacement part for oil field exploration,
21drilling, and production equipment, and (vi) machinery and
22equipment purchased for lease; but excluding motor vehicles
23required to be registered under the Illinois Vehicle Code.
24 (11) Photoprocessing machinery and equipment, including
25repair and replacement parts, both new and used, including that
26manufactured on special order, certified by the purchaser to be

SB3445 Enrolled- 157 -LRB100 20331 HLH 35618 b
1used primarily for photoprocessing, and including
2photoprocessing machinery and equipment purchased for lease.
3 (12) Coal and aggregate exploration, mining, off-highway
4hauling, processing, maintenance, and reclamation equipment,
5including replacement parts and equipment, and including
6equipment purchased for lease, but excluding motor vehicles
7required to be registered under the Illinois Vehicle Code. The
8changes made to this Section by Public Act 97-767 apply on and
9after July 1, 2003, but no claim for credit or refund is
10allowed on or after August 16, 2013 (the effective date of
11Public Act 98-456) for such taxes paid during the period
12beginning July 1, 2003 and ending on August 16, 2013 (the
13effective date of Public Act 98-456).
14 (13) Beginning January 1, 1992 and through June 30, 2016,
15food for human consumption that is to be consumed off the
16premises where it is sold (other than alcoholic beverages, soft
17drinks and food that has been prepared for immediate
18consumption) and prescription and non-prescription medicines,
19drugs, medical appliances, and insulin, urine testing
20materials, syringes, and needles used by diabetics, for human
21use, when purchased for use by a person receiving medical
22assistance under Article V of the Illinois Public Aid Code who
23resides in a licensed long-term care facility, as defined in
24the Nursing Home Care Act, or in a licensed facility as defined
25in the ID/DD Community Care Act, the MC/DD Act, or the
26Specialized Mental Health Rehabilitation Act of 2013.

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1 (14) Semen used for artificial insemination of livestock
2for direct agricultural production.
3 (15) Horses, or interests in horses, registered with and
4meeting the requirements of any of the Arabian Horse Club
5Registry of America, Appaloosa Horse Club, American Quarter
6Horse Association, United States Trotting Association, or
7Jockey Club, as appropriate, used for purposes of breeding or
8racing for prizes. This item (15) is exempt from the provisions
9of Section 3-55, and the exemption provided for under this item
10(15) applies for all periods beginning May 30, 1995, but no
11claim for credit or refund is allowed on or after January 1,
122008 (the effective date of Public Act 95-88) for such taxes
13paid during the period beginning May 30, 2000 and ending on
14January 1, 2008 (the effective date of Public Act 95-88).
15 (16) Computers and communications equipment utilized for
16any hospital purpose and equipment used in the diagnosis,
17analysis, or treatment of hospital patients sold to a lessor
18who leases the equipment, under a lease of one year or longer
19executed or in effect at the time of the purchase, to a
20hospital that has been issued an active tax exemption
21identification number by the Department under Section 1g of the
22Retailers' Occupation Tax Act.
23 (17) Personal property sold to a lessor who leases the
24property, under a lease of one year or longer executed or in
25effect at the time of the purchase, to a governmental body that
26has been issued an active tax exemption identification number

SB3445 Enrolled- 159 -LRB100 20331 HLH 35618 b
1by the Department under Section 1g of the Retailers' Occupation
2Tax Act.
3 (18) Beginning with taxable years ending on or after
4December 31, 1995 and ending with taxable years ending on or
5before December 31, 2004, personal property that is donated for
6disaster relief to be used in a State or federally declared
7disaster area in Illinois or bordering Illinois by a
8manufacturer or retailer that is registered in this State to a
9corporation, society, association, foundation, or institution
10that has been issued a sales tax exemption identification
11number by the Department that assists victims of the disaster
12who reside within the declared disaster area.
13 (19) Beginning with taxable years ending on or after
14December 31, 1995 and ending with taxable years ending on or
15before December 31, 2004, personal property that is used in the
16performance of infrastructure repairs in this State, including
17but not limited to municipal roads and streets, access roads,
18bridges, sidewalks, waste disposal systems, water and sewer
19line extensions, water distribution and purification
20facilities, storm water drainage and retention facilities, and
21sewage treatment facilities, resulting from a State or
22federally declared disaster in Illinois or bordering Illinois
23when such repairs are initiated on facilities located in the
24declared disaster area within 6 months after the disaster.
25 (20) Beginning July 1, 1999, game or game birds sold at a
26"game breeding and hunting preserve area" as that term is used

SB3445 Enrolled- 160 -LRB100 20331 HLH 35618 b
1in the Wildlife Code. This paragraph is exempt from the
2provisions of Section 3-55.
3 (21) A motor vehicle, as that term is defined in Section
41-146 of the Illinois Vehicle Code, that is donated to a
5corporation, limited liability company, society, association,
6foundation, or institution that is determined by the Department
7to be organized and operated exclusively for educational
8purposes. For purposes of this exemption, "a corporation,
9limited liability company, society, association, foundation,
10or institution organized and operated exclusively for
11educational purposes" means all tax-supported public schools,
12private schools that offer systematic instruction in useful
13branches of learning by methods common to public schools and
14that compare favorably in their scope and intensity with the
15course of study presented in tax-supported schools, and
16vocational or technical schools or institutes organized and
17operated exclusively to provide a course of study of not less
18than 6 weeks duration and designed to prepare individuals to
19follow a trade or to pursue a manual, technical, mechanical,
20industrial, business, or commercial occupation.
21 (22) Beginning January 1, 2000, personal property,
22including food, purchased through fundraising events for the
23benefit of a public or private elementary or secondary school,
24a group of those schools, or one or more school districts if
25the events are sponsored by an entity recognized by the school
26district that consists primarily of volunteers and includes

SB3445 Enrolled- 161 -LRB100 20331 HLH 35618 b
1parents and teachers of the school children. This paragraph
2does not apply to fundraising events (i) for the benefit of
3private home instruction or (ii) for which the fundraising
4entity purchases the personal property sold at the events from
5another individual or entity that sold the property for the
6purpose of resale by the fundraising entity and that profits
7from the sale to the fundraising entity. This paragraph is
8exempt from the provisions of Section 3-55.
9 (23) Beginning January 1, 2000 and through December 31,
102001, new or used automatic vending machines that prepare and
11serve hot food and beverages, including coffee, soup, and other
12items, and replacement parts for these machines. Beginning
13January 1, 2002 and through June 30, 2003, machines and parts
14for machines used in commercial, coin-operated amusement and
15vending business if a use or occupation tax is paid on the
16gross receipts derived from the use of the commercial,
17coin-operated amusement and vending machines. This paragraph
18is exempt from the provisions of Section 3-55.
19 (24) Beginning on the effective date of this amendatory Act
20of the 92nd General Assembly, computers and communications
21equipment utilized for any hospital purpose and equipment used
22in the diagnosis, analysis, or treatment of hospital patients
23sold to a lessor who leases the equipment, under a lease of one
24year or longer executed or in effect at the time of the
25purchase, to a hospital that has been issued an active tax
26exemption identification number by the Department under

SB3445 Enrolled- 162 -LRB100 20331 HLH 35618 b
1Section 1g of the Retailers' Occupation Tax Act. This paragraph
2is exempt from the provisions of Section 3-55.
3 (25) Beginning on the effective date of this amendatory Act
4of the 92nd General Assembly, personal property sold to a
5lessor who leases the property, under a lease of one year or
6longer executed or in effect at the time of the purchase, to a
7governmental body that has been issued an active tax exemption
8identification number by the Department under Section 1g of the
9Retailers' Occupation Tax Act. This paragraph is exempt from
10the provisions of Section 3-55.
11 (26) Beginning on January 1, 2002 and through June 30,
122016, tangible personal property purchased from an Illinois
13retailer by a taxpayer engaged in centralized purchasing
14activities in Illinois who will, upon receipt of the property
15in Illinois, temporarily store the property in Illinois (i) for
16the purpose of subsequently transporting it outside this State
17for use or consumption thereafter solely outside this State or
18(ii) for the purpose of being processed, fabricated, or
19manufactured into, attached to, or incorporated into other
20tangible personal property to be transported outside this State
21and thereafter used or consumed solely outside this State. The
22Director of Revenue shall, pursuant to rules adopted in
23accordance with the Illinois Administrative Procedure Act,
24issue a permit to any taxpayer in good standing with the
25Department who is eligible for the exemption under this
26paragraph (26). The permit issued under this paragraph (26)

SB3445 Enrolled- 163 -LRB100 20331 HLH 35618 b
1shall authorize the holder, to the extent and in the manner
2specified in the rules adopted under this Act, to purchase
3tangible personal property from a retailer exempt from the
4taxes imposed by this Act. Taxpayers shall maintain all
5necessary books and records to substantiate the use and
6consumption of all such tangible personal property outside of
7the State of Illinois.
8 (27) Beginning January 1, 2008, tangible personal property
9used in the construction or maintenance of a community water
10supply, as defined under Section 3.145 of the Environmental
11Protection Act, that is operated by a not-for-profit
12corporation that holds a valid water supply permit issued under
13Title IV of the Environmental Protection Act. This paragraph is
14exempt from the provisions of Section 3-55.
15 (28) Tangible personal property sold to a
16public-facilities corporation, as described in Section
1711-65-10 of the Illinois Municipal Code, for purposes of
18constructing or furnishing a municipal convention hall, but
19only if the legal title to the municipal convention hall is
20transferred to the municipality without any further
21consideration by or on behalf of the municipality at the time
22of the completion of the municipal convention hall or upon the
23retirement or redemption of any bonds or other debt instruments
24issued by the public-facilities corporation in connection with
25the development of the municipal convention hall. This
26exemption includes existing public-facilities corporations as

SB3445 Enrolled- 164 -LRB100 20331 HLH 35618 b
1provided in Section 11-65-25 of the Illinois Municipal Code.
2This paragraph is exempt from the provisions of Section 3-55.
3 (29) Beginning January 1, 2010, materials, parts,
4equipment, components, and furnishings incorporated into or
5upon an aircraft as part of the modification, refurbishment,
6completion, replacement, repair, or maintenance of the
7aircraft. This exemption includes consumable supplies used in
8the modification, refurbishment, completion, replacement,
9repair, and maintenance of aircraft, but excludes any
10materials, parts, equipment, components, and consumable
11supplies used in the modification, replacement, repair, and
12maintenance of aircraft engines or power plants, whether such
13engines or power plants are installed or uninstalled upon any
14such aircraft. "Consumable supplies" include, but are not
15limited to, adhesive, tape, sandpaper, general purpose
16lubricants, cleaning solution, latex gloves, and protective
17films. This exemption applies only to the transfer of
18qualifying tangible personal property incident to the
19modification, refurbishment, completion, replacement, repair,
20or maintenance of an aircraft by persons who (i) hold an Air
21Agency Certificate and are empowered to operate an approved
22repair station by the Federal Aviation Administration, (ii)
23have a Class IV Rating, and (iii) conduct operations in
24accordance with Part 145 of the Federal Aviation Regulations.
25The exemption does not include aircraft operated by a
26commercial air carrier providing scheduled passenger air

SB3445 Enrolled- 165 -LRB100 20331 HLH 35618 b
1service pursuant to authority issued under Part 121 or Part 129
2of the Federal Aviation Regulations. The changes made to this
3paragraph (29) by Public Act 98-534 are declarative of existing
4law.
5 (30) Beginning January 1, 2017, menstrual pads, tampons,
6and menstrual cups.
7 (31) Tangible personal property transferred to a purchaser
8who is exempt from tax by operation of federal law. This
9paragraph is exempt from the provisions of Section 3-55.
10(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
11100-22, eff. 7-6-17.)
12 (35 ILCS 115/3-5.5)
13 Sec. 3-5.5. Food and drugs sold by not-for-profit
14organizations; exemption. The Department shall not collect the
151% tax imposed under this Act on food for human consumption
16that is to be consumed off the premises where it is sold (other
17than alcoholic beverages, soft drinks, and food that has been
18prepared for immediate consumption) and prescription and
19nonprescription medicines, drugs, medical appliances, and
20insulin, urine testing materials, syringes, and needles used by
21diabetics, for human use from any not-for-profit organization,
22that sells food in a food distribution program at a price below
23the retail cost of the food to purchasers who, as a condition
24of participation in the program, are required to perform
25community service, located in a county or municipality that

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1notifies the Department, in writing, that the county or
2municipality does not want the tax to be collected from any of
3such organizations located in the county or municipality.
4(Source: P.A. 88-374.)
5 (35 ILCS 115/9) (from Ch. 120, par. 439.109)
6 (Text of Section before amendment by P.A. 100-363)
7 Sec. 9. Each serviceman required or authorized to collect
8the tax herein imposed shall pay to the Department the amount
9of such tax at the time when he is required to file his return
10for the period during which such tax was collectible, less a
11discount of 2.1% prior to January 1, 1990, and 1.75% on and
12after January 1, 1990, or $5 per calendar year, whichever is
13greater, which is allowed to reimburse the serviceman for
14expenses incurred in collecting the tax, keeping records,
15preparing and filing returns, remitting the tax and supplying
16data to the Department on request. The discount allowed under
17this Section is allowed only for returns that are filed in the
18manner required by this Act. The Department may disallow the
19discount for servicemen whose certificate of registration is
20revoked at the time the return is filed, but only if the
21Department's decision to revoke the certificate of
22registration has become final.
23 Where such tangible personal property is sold under a
24conditional sales contract, or under any other form of sale
25wherein the payment of the principal sum, or a part thereof, is

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1extended beyond the close of the period for which the return is
2filed, the serviceman, in collecting the tax may collect, for
3each tax return period, only the tax applicable to the part of
4the selling price actually received during such tax return
5period.
6 Except as provided hereinafter in this Section, on or
7before the twentieth day of each calendar month, such
8serviceman shall file a return for the preceding calendar month
9in accordance with reasonable rules and regulations to be
10promulgated by the Department of Revenue. Such return shall be
11filed on a form prescribed by the Department and shall contain
12such information as the Department may reasonably require. On
13and after January 1, 2018, with respect to servicemen whose
14annual gross receipts average $20,000 or more, all returns
15required to be filed pursuant to this Act shall be filed
16electronically. Servicemen who demonstrate that they do not
17have access to the Internet or demonstrate hardship in filing
18electronically may petition the Department to waive the
19electronic filing requirement.
20 The Department may require returns to be filed on a
21quarterly basis. If so required, a return for each calendar
22quarter shall be filed on or before the twentieth day of the
23calendar month following the end of such calendar quarter. The
24taxpayer shall also file a return with the Department for each
25of the first two months of each calendar quarter, on or before
26the twentieth day of the following calendar month, stating:

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1 1. The name of the seller;
2 2. The address of the principal place of business from
3 which he engages in business as a serviceman in this State;
4 3. The total amount of taxable receipts received by him
5 during the preceding calendar month, including receipts
6 from charge and time sales, but less all deductions allowed
7 by law;
8 4. The amount of credit provided in Section 2d of this
9 Act;
10 5. The amount of tax due;
11 5-5. The signature of the taxpayer; and
12 6. Such other reasonable information as the Department
13 may require.
14 If a taxpayer fails to sign a return within 30 days after
15the proper notice and demand for signature by the Department,
16the return shall be considered valid and any amount shown to be
17due on the return shall be deemed assessed.
18 Prior to October 1, 2003, and on and after September 1,
192004 a serviceman may accept a Manufacturer's Purchase Credit
20certification from a purchaser in satisfaction of Service Use
21Tax as provided in Section 3-70 of the Service Use Tax Act if
22the purchaser provides the appropriate documentation as
23required by Section 3-70 of the Service Use Tax Act. A
24Manufacturer's Purchase Credit certification, accepted prior
25to October 1, 2003 or on or after September 1, 2004 by a
26serviceman as provided in Section 3-70 of the Service Use Tax

SB3445 Enrolled- 169 -LRB100 20331 HLH 35618 b
1Act, may be used by that serviceman to satisfy Service
2Occupation Tax liability in the amount claimed in the
3certification, not to exceed 6.25% of the receipts subject to
4tax from a qualifying purchase. A Manufacturer's Purchase
5Credit reported on any original or amended return filed under
6this Act after October 20, 2003 for reporting periods prior to
7September 1, 2004 shall be disallowed. Manufacturer's Purchase
8Credit reported on annual returns due on or after January 1,
92005 will be disallowed for periods prior to September 1, 2004.
10No Manufacturer's Purchase Credit may be used after September
1130, 2003 through August 31, 2004 to satisfy any tax liability
12imposed under this Act, including any audit liability.
13 If the serviceman's average monthly tax liability to the
14Department does not exceed $200, the Department may authorize
15his returns to be filed on a quarter annual basis, with the
16return for January, February and March of a given year being
17due by April 20 of such year; with the return for April, May
18and June of a given year being due by July 20 of such year; with
19the return for July, August and September of a given year being
20due by October 20 of such year, and with the return for
21October, November and December of a given year being due by
22January 20 of the following year.
23 If the serviceman's average monthly tax liability to the
24Department does not exceed $50, the Department may authorize
25his returns to be filed on an annual basis, with the return for
26a given year being due by January 20 of the following year.

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1 Such quarter annual and annual returns, as to form and
2substance, shall be subject to the same requirements as monthly
3returns.
4 Notwithstanding any other provision in this Act concerning
5the time within which a serviceman may file his return, in the
6case of any serviceman who ceases to engage in a kind of
7business which makes him responsible for filing returns under
8this Act, such serviceman shall file a final return under this
9Act with the Department not more than 1 month after
10discontinuing such business.
11 Beginning October 1, 1993, a taxpayer who has an average
12monthly tax liability of $150,000 or more shall make all
13payments required by rules of the Department by electronic
14funds transfer. Beginning October 1, 1994, a taxpayer who has
15an average monthly tax liability of $100,000 or more shall make
16all payments required by rules of the Department by electronic
17funds transfer. Beginning October 1, 1995, a taxpayer who has
18an average monthly tax liability of $50,000 or more shall make
19all payments required by rules of the Department by electronic
20funds transfer. Beginning October 1, 2000, a taxpayer who has
21an annual tax liability of $200,000 or more shall make all
22payments required by rules of the Department by electronic
23funds transfer. The term "annual tax liability" shall be the
24sum of the taxpayer's liabilities under this Act, and under all
25other State and local occupation and use tax laws administered
26by the Department, for the immediately preceding calendar year.

SB3445 Enrolled- 171 -LRB100 20331 HLH 35618 b
1The term "average monthly tax liability" means the sum of the
2taxpayer's liabilities under this Act, and under all other
3State and local occupation and use tax laws administered by the
4Department, for the immediately preceding calendar year
5divided by 12. Beginning on October 1, 2002, a taxpayer who has
6a tax liability in the amount set forth in subsection (b) of
7Section 2505-210 of the Department of Revenue Law shall make
8all payments required by rules of the Department by electronic
9funds transfer.
10 Before August 1 of each year beginning in 1993, the
11Department shall notify all taxpayers required to make payments
12by electronic funds transfer. All taxpayers required to make
13payments by electronic funds transfer shall make those payments
14for a minimum of one year beginning on October 1.
15 Any taxpayer not required to make payments by electronic
16funds transfer may make payments by electronic funds transfer
17with the permission of the Department.
18 All taxpayers required to make payment by electronic funds
19transfer and any taxpayers authorized to voluntarily make
20payments by electronic funds transfer shall make those payments
21in the manner authorized by the Department.
22 The Department shall adopt such rules as are necessary to
23effectuate a program of electronic funds transfer and the
24requirements of this Section.
25 Where a serviceman collects the tax with respect to the
26selling price of tangible personal property which he sells and

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1the purchaser thereafter returns such tangible personal
2property and the serviceman refunds the selling price thereof
3to the purchaser, such serviceman shall also refund, to the
4purchaser, the tax so collected from the purchaser. When filing
5his return for the period in which he refunds such tax to the
6purchaser, the serviceman may deduct the amount of the tax so
7refunded by him to the purchaser from any other Service
8Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
9Use Tax which such serviceman may be required to pay or remit
10to the Department, as shown by such return, provided that the
11amount of the tax to be deducted shall previously have been
12remitted to the Department by such serviceman. If the
13serviceman shall not previously have remitted the amount of
14such tax to the Department, he shall be entitled to no
15deduction hereunder upon refunding such tax to the purchaser.
16 If experience indicates such action to be practicable, the
17Department may prescribe and furnish a combination or joint
18return which will enable servicemen, who are required to file
19returns hereunder and also under the Retailers' Occupation Tax
20Act, the Use Tax Act or the Service Use Tax Act, to furnish all
21the return information required by all said Acts on the one
22form.
23 Where the serviceman has more than one business registered
24with the Department under separate registrations hereunder,
25such serviceman shall file separate returns for each registered
26business.

SB3445 Enrolled- 173 -LRB100 20331 HLH 35618 b
1 Beginning January 1, 1990, each month the Department shall
2pay into the Local Government Tax Fund the revenue realized for
3the preceding month from the 1% tax imposed under this Act on
4sales of food for human consumption which is to be consumed off
5the premises where it is sold (other than alcoholic beverages,
6soft drinks and food which has been prepared for immediate
7consumption) and prescription and nonprescription medicines,
8drugs, medical appliances, products classified as Class III
9medical devices by the United States Food and Drug
10Administration that are used for cancer treatment pursuant to a
11prescription, as well as any accessories and components related
12to those devices, and insulin, urine testing materials,
13syringes and needles used by diabetics.
14 Beginning January 1, 1990, each month the Department shall
15pay into the County and Mass Transit District Fund 4% of the
16revenue realized for the preceding month from the 6.25% general
17rate.
18 Beginning August 1, 2000, each month the Department shall
19pay into the County and Mass Transit District Fund 20% of the
20net revenue realized for the preceding month from the 1.25%
21rate on the selling price of motor fuel and gasohol.
22 Beginning January 1, 1990, each month the Department shall
23pay into the Local Government Tax Fund 16% of the revenue
24realized for the preceding month from the 6.25% general rate on
25transfers of tangible personal property.
26 Beginning August 1, 2000, each month the Department shall

SB3445 Enrolled- 174 -LRB100 20331 HLH 35618 b
1pay into the Local Government Tax Fund 80% of the net revenue
2realized for the preceding month from the 1.25% rate on the
3selling price of motor fuel and gasohol.
4 Beginning October 1, 2009, each month the Department shall
5pay into the Capital Projects Fund an amount that is equal to
6an amount estimated by the Department to represent 80% of the
7net revenue realized for the preceding month from the sale of
8candy, grooming and hygiene products, and soft drinks that had
9been taxed at a rate of 1% prior to September 1, 2009 but that
10are now taxed at 6.25%.
11 Beginning July 1, 2013, each month the Department shall pay
12into the Underground Storage Tank Fund from the proceeds
13collected under this Act, the Use Tax Act, the Service Use Tax
14Act, and the Retailers' Occupation Tax Act an amount equal to
15the average monthly deficit in the Underground Storage Tank
16Fund during the prior year, as certified annually by the
17Illinois Environmental Protection Agency, but the total
18payment into the Underground Storage Tank Fund under this Act,
19the Use Tax Act, the Service Use Tax Act, and the Retailers'
20Occupation Tax Act shall not exceed $18,000,000 in any State
21fiscal year. As used in this paragraph, the "average monthly
22deficit" shall be equal to the difference between the average
23monthly claims for payment by the fund and the average monthly
24revenues deposited into the fund, excluding payments made
25pursuant to this paragraph.
26 Beginning July 1, 2015, of the remainder of the moneys

SB3445 Enrolled- 175 -LRB100 20331 HLH 35618 b
1received by the Department under the Use Tax Act, the Service
2Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
3each month the Department shall deposit $500,000 into the State
4Crime Laboratory Fund.
5 Of the remainder of the moneys received by the Department
6pursuant to this Act, (a) 1.75% thereof shall be paid into the
7Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
8and after July 1, 1989, 3.8% thereof shall be paid into the
9Build Illinois Fund; provided, however, that if in any fiscal
10year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
11may be, of the moneys received by the Department and required
12to be paid into the Build Illinois Fund pursuant to Section 3
13of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
14Act, Section 9 of the Service Use Tax Act, and Section 9 of the
15Service Occupation Tax Act, such Acts being hereinafter called
16the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
17may be, of moneys being hereinafter called the "Tax Act
18Amount", and (2) the amount transferred to the Build Illinois
19Fund from the State and Local Sales Tax Reform Fund shall be
20less than the Annual Specified Amount (as defined in Section 3
21of the Retailers' Occupation Tax Act), an amount equal to the
22difference shall be immediately paid into the Build Illinois
23Fund from other moneys received by the Department pursuant to
24the Tax Acts; and further provided, that if on the last
25business day of any month the sum of (1) the Tax Act Amount
26required to be deposited into the Build Illinois Account in the

SB3445 Enrolled- 176 -LRB100 20331 HLH 35618 b
1Build Illinois Fund during such month and (2) the amount
2transferred during such month to the Build Illinois Fund from
3the State and Local Sales Tax Reform Fund shall have been less
4than 1/12 of the Annual Specified Amount, an amount equal to
5the difference shall be immediately paid into the Build
6Illinois Fund from other moneys received by the Department
7pursuant to the Tax Acts; and, further provided, that in no
8event shall the payments required under the preceding proviso
9result in aggregate payments into the Build Illinois Fund
10pursuant to this clause (b) for any fiscal year in excess of
11the greater of (i) the Tax Act Amount or (ii) the Annual
12Specified Amount for such fiscal year; and, further provided,
13that the amounts payable into the Build Illinois Fund under
14this clause (b) shall be payable only until such time as the
15aggregate amount on deposit under each trust indenture securing
16Bonds issued and outstanding pursuant to the Build Illinois
17Bond Act is sufficient, taking into account any future
18investment income, to fully provide, in accordance with such
19indenture, for the defeasance of or the payment of the
20principal of, premium, if any, and interest on the Bonds
21secured by such indenture and on any Bonds expected to be
22issued thereafter and all fees and costs payable with respect
23thereto, all as certified by the Director of the Bureau of the
24Budget (now Governor's Office of Management and Budget). If on
25the last business day of any month in which Bonds are
26outstanding pursuant to the Build Illinois Bond Act, the

SB3445 Enrolled- 177 -LRB100 20331 HLH 35618 b
1aggregate of the moneys deposited in the Build Illinois Bond
2Account in the Build Illinois Fund in such month shall be less
3than the amount required to be transferred in such month from
4the Build Illinois Bond Account to the Build Illinois Bond
5Retirement and Interest Fund pursuant to Section 13 of the
6Build Illinois Bond Act, an amount equal to such deficiency
7shall be immediately paid from other moneys received by the
8Department pursuant to the Tax Acts to the Build Illinois Fund;
9provided, however, that any amounts paid to the Build Illinois
10Fund in any fiscal year pursuant to this sentence shall be
11deemed to constitute payments pursuant to clause (b) of the
12preceding sentence and shall reduce the amount otherwise
13payable for such fiscal year pursuant to clause (b) of the
14preceding sentence. The moneys received by the Department
15pursuant to this Act and required to be deposited into the
16Build Illinois Fund are subject to the pledge, claim and charge
17set forth in Section 12 of the Build Illinois Bond Act.
18 Subject to payment of amounts into the Build Illinois Fund
19as provided in the preceding paragraph or in any amendment
20thereto hereafter enacted, the following specified monthly
21installment of the amount requested in the certificate of the
22Chairman of the Metropolitan Pier and Exposition Authority
23provided under Section 8.25f of the State Finance Act, but not
24in excess of the sums designated as "Total Deposit", shall be
25deposited in the aggregate from collections under Section 9 of
26the Use Tax Act, Section 9 of the Service Use Tax Act, Section

SB3445 Enrolled- 178 -LRB100 20331 HLH 35618 b
19 of the Service Occupation Tax Act, and Section 3 of the
2Retailers' Occupation Tax Act into the McCormick Place
3Expansion Project Fund in the specified fiscal years.
4Fiscal YearTotal Deposit
51993 $0
61994 53,000,000
71995 58,000,000
81996 61,000,000
91997 64,000,000
101998 68,000,000
111999 71,000,000
122000 75,000,000
132001 80,000,000
142002 93,000,000
152003 99,000,000
162004103,000,000
172005108,000,000
182006113,000,000
192007119,000,000
202008126,000,000
212009132,000,000
222010139,000,000
232011146,000,000
242012153,000,000
252013161,000,000

SB3445 Enrolled- 179 -LRB100 20331 HLH 35618 b
12014170,000,000
22015179,000,000
32016189,000,000
42017199,000,000
52018210,000,000
62019221,000,000
72020233,000,000
82021246,000,000
92022260,000,000
102023275,000,000
112024 275,000,000
122025 275,000,000
132026 279,000,000
142027 292,000,000
152028 307,000,000
162029 322,000,000
172030 338,000,000
182031 350,000,000
192032 350,000,000
20and
21each fiscal year
22thereafter that bonds
23are outstanding under
24Section 13.2 of the
25Metropolitan Pier and
26Exposition Authority Act,

SB3445 Enrolled- 180 -LRB100 20331 HLH 35618 b
1but not after fiscal year 2060.
2 Beginning July 20, 1993 and in each month of each fiscal
3year thereafter, one-eighth of the amount requested in the
4certificate of the Chairman of the Metropolitan Pier and
5Exposition Authority for that fiscal year, less the amount
6deposited into the McCormick Place Expansion Project Fund by
7the State Treasurer in the respective month under subsection
8(g) of Section 13 of the Metropolitan Pier and Exposition
9Authority Act, plus cumulative deficiencies in the deposits
10required under this Section for previous months and years,
11shall be deposited into the McCormick Place Expansion Project
12Fund, until the full amount requested for the fiscal year, but
13not in excess of the amount specified above as "Total Deposit",
14has been deposited.
15 Subject to payment of amounts into the Build Illinois Fund
16and the McCormick Place Expansion Project Fund pursuant to the
17preceding paragraphs or in any amendments thereto hereafter
18enacted, beginning July 1, 1993 and ending on September 30,
192013, the Department shall each month pay into the Illinois Tax
20Increment Fund 0.27% of 80% of the net revenue realized for the
21preceding month from the 6.25% general rate on the selling
22price of tangible personal property.
23 Subject to payment of amounts into the Build Illinois Fund
24and the McCormick Place Expansion Project Fund pursuant to the
25preceding paragraphs or in any amendments thereto hereafter
26enacted, beginning with the receipt of the first report of

SB3445 Enrolled- 181 -LRB100 20331 HLH 35618 b
1taxes paid by an eligible business and continuing for a 25-year
2period, the Department shall each month pay into the Energy
3Infrastructure Fund 80% of the net revenue realized from the
46.25% general rate on the selling price of Illinois-mined coal
5that was sold to an eligible business. For purposes of this
6paragraph, the term "eligible business" means a new electric
7generating facility certified pursuant to Section 605-332 of
8the Department of Commerce and Economic Opportunity Law of the
9Civil Administrative Code of Illinois.
10 Subject to payment of amounts into the Build Illinois Fund,
11the McCormick Place Expansion Project Fund, the Illinois Tax
12Increment Fund, and the Energy Infrastructure Fund pursuant to
13the preceding paragraphs or in any amendments to this Section
14hereafter enacted, beginning on the first day of the first
15calendar month to occur on or after August 26, 2014 (the
16effective date of Public Act 98-1098) this amendatory Act of
17the 98th General Assembly, each month, from the collections
18made under Section 9 of the Use Tax Act, Section 9 of the
19Service Use Tax Act, Section 9 of the Service Occupation Tax
20Act, and Section 3 of the Retailers' Occupation Tax Act, the
21Department shall pay into the Tax Compliance and Administration
22Fund, to be used, subject to appropriation, to fund additional
23auditors and compliance personnel at the Department of Revenue,
24an amount equal to 1/12 of 5% of 80% of the cash receipts
25collected during the preceding fiscal year by the Audit Bureau
26of the Department under the Use Tax Act, the Service Use Tax

SB3445 Enrolled- 182 -LRB100 20331 HLH 35618 b
1Act, the Service Occupation Tax Act, the Retailers' Occupation
2Tax Act, and associated local occupation and use taxes
3administered by the Department.
4 Of the remainder of the moneys received by the Department
5pursuant to this Act, 75% shall be paid into the General
6Revenue Fund of the State Treasury and 25% shall be reserved in
7a special account and used only for the transfer to the Common
8School Fund as part of the monthly transfer from the General
9Revenue Fund in accordance with Section 8a of the State Finance
10Act.
11 The Department may, upon separate written notice to a
12taxpayer, require the taxpayer to prepare and file with the
13Department on a form prescribed by the Department within not
14less than 60 days after receipt of the notice an annual
15information return for the tax year specified in the notice.
16Such annual return to the Department shall include a statement
17of gross receipts as shown by the taxpayer's last Federal
18income tax return. If the total receipts of the business as
19reported in the Federal income tax return do not agree with the
20gross receipts reported to the Department of Revenue for the
21same period, the taxpayer shall attach to his annual return a
22schedule showing a reconciliation of the 2 amounts and the
23reasons for the difference. The taxpayer's annual return to the
24Department shall also disclose the cost of goods sold by the
25taxpayer during the year covered by such return, opening and
26closing inventories of such goods for such year, cost of goods

SB3445 Enrolled- 183 -LRB100 20331 HLH 35618 b
1used from stock or taken from stock and given away by the
2taxpayer during such year, pay roll information of the
3taxpayer's business during such year and any additional
4reasonable information which the Department deems would be
5helpful in determining the accuracy of the monthly, quarterly
6or annual returns filed by such taxpayer as hereinbefore
7provided for in this Section.
8 If the annual information return required by this Section
9is not filed when and as required, the taxpayer shall be liable
10as follows:
11 (i) Until January 1, 1994, the taxpayer shall be liable
12 for a penalty equal to 1/6 of 1% of the tax due from such
13 taxpayer under this Act during the period to be covered by
14 the annual return for each month or fraction of a month
15 until such return is filed as required, the penalty to be
16 assessed and collected in the same manner as any other
17 penalty provided for in this Act.
18 (ii) On and after January 1, 1994, the taxpayer shall
19 be liable for a penalty as described in Section 3-4 of the
20 Uniform Penalty and Interest Act.
21 The chief executive officer, proprietor, owner or highest
22ranking manager shall sign the annual return to certify the
23accuracy of the information contained therein. Any person who
24willfully signs the annual return containing false or
25inaccurate information shall be guilty of perjury and punished
26accordingly. The annual return form prescribed by the

SB3445 Enrolled- 184 -LRB100 20331 HLH 35618 b
1Department shall include a warning that the person signing the
2return may be liable for perjury.
3 The foregoing portion of this Section concerning the filing
4of an annual information return shall not apply to a serviceman
5who is not required to file an income tax return with the
6United States Government.
7 As soon as possible after the first day of each month, upon
8certification of the Department of Revenue, the Comptroller
9shall order transferred and the Treasurer shall transfer from
10the General Revenue Fund to the Motor Fuel Tax Fund an amount
11equal to 1.7% of 80% of the net revenue realized under this Act
12for the second preceding month. Beginning April 1, 2000, this
13transfer is no longer required and shall not be made.
14 Net revenue realized for a month shall be the revenue
15collected by the State pursuant to this Act, less the amount
16paid out during that month as refunds to taxpayers for
17overpayment of liability.
18 For greater simplicity of administration, it shall be
19permissible for manufacturers, importers and wholesalers whose
20products are sold by numerous servicemen in Illinois, and who
21wish to do so, to assume the responsibility for accounting and
22paying to the Department all tax accruing under this Act with
23respect to such sales, if the servicemen who are affected do
24not make written objection to the Department to this
25arrangement.
26(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;

SB3445 Enrolled- 185 -LRB100 20331 HLH 35618 b
1100-303, eff. 8-24-17; revised 10-31-17)
2 (Text of Section after amendment by P.A. 100-363)
3 Sec. 9. Each serviceman required or authorized to collect
4the tax herein imposed shall pay to the Department the amount
5of such tax at the time when he is required to file his return
6for the period during which such tax was collectible, less a
7discount of 2.1% prior to January 1, 1990, and 1.75% on and
8after January 1, 1990, or $5 per calendar year, whichever is
9greater, which is allowed to reimburse the serviceman for
10expenses incurred in collecting the tax, keeping records,
11preparing and filing returns, remitting the tax and supplying
12data to the Department on request. The discount allowed under
13this Section is allowed only for returns that are filed in the
14manner required by this Act. The Department may disallow the
15discount for servicemen whose certificate of registration is
16revoked at the time the return is filed, but only if the
17Department's decision to revoke the certificate of
18registration has become final.
19 Where such tangible personal property is sold under a
20conditional sales contract, or under any other form of sale
21wherein the payment of the principal sum, or a part thereof, is
22extended beyond the close of the period for which the return is
23filed, the serviceman, in collecting the tax may collect, for
24each tax return period, only the tax applicable to the part of
25the selling price actually received during such tax return

SB3445 Enrolled- 186 -LRB100 20331 HLH 35618 b
1period.
2 Except as provided hereinafter in this Section, on or
3before the twentieth day of each calendar month, such
4serviceman shall file a return for the preceding calendar month
5in accordance with reasonable rules and regulations to be
6promulgated by the Department of Revenue. Such return shall be
7filed on a form prescribed by the Department and shall contain
8such information as the Department may reasonably require. On
9and after January 1, 2018, with respect to servicemen whose
10annual gross receipts average $20,000 or more, all returns
11required to be filed pursuant to this Act shall be filed
12electronically. Servicemen who demonstrate that they do not
13have access to the Internet or demonstrate hardship in filing
14electronically may petition the Department to waive the
15electronic filing requirement.
16 The Department may require returns to be filed on a
17quarterly basis. If so required, a return for each calendar
18quarter shall be filed on or before the twentieth day of the
19calendar month following the end of such calendar quarter. The
20taxpayer shall also file a return with the Department for each
21of the first two months of each calendar quarter, on or before
22the twentieth day of the following calendar month, stating:
23 1. The name of the seller;
24 2. The address of the principal place of business from
25 which he engages in business as a serviceman in this State;
26 3. The total amount of taxable receipts received by him

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1 during the preceding calendar month, including receipts
2 from charge and time sales, but less all deductions allowed
3 by law;
4 4. The amount of credit provided in Section 2d of this
5 Act;
6 5. The amount of tax due;
7 5-5. The signature of the taxpayer; and
8 6. Such other reasonable information as the Department
9 may require.
10 If a taxpayer fails to sign a return within 30 days after
11the proper notice and demand for signature by the Department,
12the return shall be considered valid and any amount shown to be
13due on the return shall be deemed assessed.
14 Prior to October 1, 2003, and on and after September 1,
152004 a serviceman may accept a Manufacturer's Purchase Credit
16certification from a purchaser in satisfaction of Service Use
17Tax as provided in Section 3-70 of the Service Use Tax Act if
18the purchaser provides the appropriate documentation as
19required by Section 3-70 of the Service Use Tax Act. A
20Manufacturer's Purchase Credit certification, accepted prior
21to October 1, 2003 or on or after September 1, 2004 by a
22serviceman as provided in Section 3-70 of the Service Use Tax
23Act, may be used by that serviceman to satisfy Service
24Occupation Tax liability in the amount claimed in the
25certification, not to exceed 6.25% of the receipts subject to
26tax from a qualifying purchase. A Manufacturer's Purchase

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1Credit reported on any original or amended return filed under
2this Act after October 20, 2003 for reporting periods prior to
3September 1, 2004 shall be disallowed. Manufacturer's Purchase
4Credit reported on annual returns due on or after January 1,
52005 will be disallowed for periods prior to September 1, 2004.
6No Manufacturer's Purchase Credit may be used after September
730, 2003 through August 31, 2004 to satisfy any tax liability
8imposed under this Act, including any audit liability.
9 If the serviceman's average monthly tax liability to the
10Department does not exceed $200, the Department may authorize
11his returns to be filed on a quarter annual basis, with the
12return for January, February and March of a given year being
13due by April 20 of such year; with the return for April, May
14and June of a given year being due by July 20 of such year; with
15the return for July, August and September of a given year being
16due by October 20 of such year, and with the return for
17October, November and December of a given year being due by
18January 20 of the following year.
19 If the serviceman's average monthly tax liability to the
20Department does not exceed $50, the Department may authorize
21his returns to be filed on an annual basis, with the return for
22a given year being due by January 20 of the following year.
23 Such quarter annual and annual returns, as to form and
24substance, shall be subject to the same requirements as monthly
25returns.
26 Notwithstanding any other provision in this Act concerning

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1the time within which a serviceman may file his return, in the
2case of any serviceman who ceases to engage in a kind of
3business which makes him responsible for filing returns under
4this Act, such serviceman shall file a final return under this
5Act with the Department not more than 1 month after
6discontinuing such business.
7 Beginning October 1, 1993, a taxpayer who has an average
8monthly tax liability of $150,000 or more shall make all
9payments required by rules of the Department by electronic
10funds transfer. Beginning October 1, 1994, a taxpayer who has
11an average monthly tax liability of $100,000 or more shall make
12all payments required by rules of the Department by electronic
13funds transfer. Beginning October 1, 1995, a taxpayer who has
14an average monthly tax liability of $50,000 or more shall make
15all payments required by rules of the Department by electronic
16funds transfer. Beginning October 1, 2000, a taxpayer who has
17an annual tax liability of $200,000 or more shall make all
18payments required by rules of the Department by electronic
19funds transfer. The term "annual tax liability" shall be the
20sum of the taxpayer's liabilities under this Act, and under all
21other State and local occupation and use tax laws administered
22by the Department, for the immediately preceding calendar year.
23The term "average monthly tax liability" means the sum of the
24taxpayer's liabilities under this Act, and under all other
25State and local occupation and use tax laws administered by the
26Department, for the immediately preceding calendar year

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1divided by 12. Beginning on October 1, 2002, a taxpayer who has
2a tax liability in the amount set forth in subsection (b) of
3Section 2505-210 of the Department of Revenue Law shall make
4all payments required by rules of the Department by electronic
5funds transfer.
6 Before August 1 of each year beginning in 1993, the
7Department shall notify all taxpayers required to make payments
8by electronic funds transfer. All taxpayers required to make
9payments by electronic funds transfer shall make those payments
10for a minimum of one year beginning on October 1.
11 Any taxpayer not required to make payments by electronic
12funds transfer may make payments by electronic funds transfer
13with the permission of the Department.
14 All taxpayers required to make payment by electronic funds
15transfer and any taxpayers authorized to voluntarily make
16payments by electronic funds transfer shall make those payments
17in the manner authorized by the Department.
18 The Department shall adopt such rules as are necessary to
19effectuate a program of electronic funds transfer and the
20requirements of this Section.
21 Where a serviceman collects the tax with respect to the
22selling price of tangible personal property which he sells and
23the purchaser thereafter returns such tangible personal
24property and the serviceman refunds the selling price thereof
25to the purchaser, such serviceman shall also refund, to the
26purchaser, the tax so collected from the purchaser. When filing

SB3445 Enrolled- 191 -LRB100 20331 HLH 35618 b
1his return for the period in which he refunds such tax to the
2purchaser, the serviceman may deduct the amount of the tax so
3refunded by him to the purchaser from any other Service
4Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
5Use Tax which such serviceman may be required to pay or remit
6to the Department, as shown by such return, provided that the
7amount of the tax to be deducted shall previously have been
8remitted to the Department by such serviceman. If the
9serviceman shall not previously have remitted the amount of
10such tax to the Department, he shall be entitled to no
11deduction hereunder upon refunding such tax to the purchaser.
12 If experience indicates such action to be practicable, the
13Department may prescribe and furnish a combination or joint
14return which will enable servicemen, who are required to file
15returns hereunder and also under the Retailers' Occupation Tax
16Act, the Use Tax Act or the Service Use Tax Act, to furnish all
17the return information required by all said Acts on the one
18form.
19 Where the serviceman has more than one business registered
20with the Department under separate registrations hereunder,
21such serviceman shall file separate returns for each registered
22business.
23 Beginning January 1, 1990, each month the Department shall
24pay into the Local Government Tax Fund the revenue realized for
25the preceding month from the 1% tax imposed under this Act on
26sales of food for human consumption which is to be consumed off

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1the premises where it is sold (other than alcoholic beverages,
2soft drinks and food which has been prepared for immediate
3consumption) and prescription and nonprescription medicines,
4drugs, medical appliances, products classified as Class III
5medical devices by the United States Food and Drug
6Administration that are used for cancer treatment pursuant to a
7prescription, as well as any accessories and components related
8to those devices, and insulin, urine testing materials,
9syringes and needles used by diabetics.
10 Beginning January 1, 1990, each month the Department shall
11pay into the County and Mass Transit District Fund 4% of the
12revenue realized for the preceding month from the 6.25% general
13rate.
14 Beginning August 1, 2000, each month the Department shall
15pay into the County and Mass Transit District Fund 20% of the
16net revenue realized for the preceding month from the 1.25%
17rate on the selling price of motor fuel and gasohol.
18 Beginning January 1, 1990, each month the Department shall
19pay into the Local Government Tax Fund 16% of the revenue
20realized for the preceding month from the 6.25% general rate on
21transfers of tangible personal property.
22 Beginning August 1, 2000, each month the Department shall
23pay into the Local Government Tax Fund 80% of the net revenue
24realized for the preceding month from the 1.25% rate on the
25selling price of motor fuel and gasohol.
26 Beginning October 1, 2009, each month the Department shall

SB3445 Enrolled- 193 -LRB100 20331 HLH 35618 b
1pay into the Capital Projects Fund an amount that is equal to
2an amount estimated by the Department to represent 80% of the
3net revenue realized for the preceding month from the sale of
4candy, grooming and hygiene products, and soft drinks that had
5been taxed at a rate of 1% prior to September 1, 2009 but that
6are now taxed at 6.25%.
7 Beginning July 1, 2013, each month the Department shall pay
8into the Underground Storage Tank Fund from the proceeds
9collected under this Act, the Use Tax Act, the Service Use Tax
10Act, and the Retailers' Occupation Tax Act an amount equal to
11the average monthly deficit in the Underground Storage Tank
12Fund during the prior year, as certified annually by the
13Illinois Environmental Protection Agency, but the total
14payment into the Underground Storage Tank Fund under this Act,
15the Use Tax Act, the Service Use Tax Act, and the Retailers'
16Occupation Tax Act shall not exceed $18,000,000 in any State
17fiscal year. As used in this paragraph, the "average monthly
18deficit" shall be equal to the difference between the average
19monthly claims for payment by the fund and the average monthly
20revenues deposited into the fund, excluding payments made
21pursuant to this paragraph.
22 Beginning July 1, 2015, of the remainder of the moneys
23received by the Department under the Use Tax Act, the Service
24Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
25each month the Department shall deposit $500,000 into the State
26Crime Laboratory Fund.

SB3445 Enrolled- 194 -LRB100 20331 HLH 35618 b
1 Of the remainder of the moneys received by the Department
2pursuant to this Act, (a) 1.75% thereof shall be paid into the
3Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
4and after July 1, 1989, 3.8% thereof shall be paid into the
5Build Illinois Fund; provided, however, that if in any fiscal
6year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
7may be, of the moneys received by the Department and required
8to be paid into the Build Illinois Fund pursuant to Section 3
9of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
10Act, Section 9 of the Service Use Tax Act, and Section 9 of the
11Service Occupation Tax Act, such Acts being hereinafter called
12the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
13may be, of moneys being hereinafter called the "Tax Act
14Amount", and (2) the amount transferred to the Build Illinois
15Fund from the State and Local Sales Tax Reform Fund shall be
16less than the Annual Specified Amount (as defined in Section 3
17of the Retailers' Occupation Tax Act), an amount equal to the
18difference shall be immediately paid into the Build Illinois
19Fund from other moneys received by the Department pursuant to
20the Tax Acts; and further provided, that if on the last
21business day of any month the sum of (1) the Tax Act Amount
22required to be deposited into the Build Illinois Account in the
23Build Illinois Fund during such month and (2) the amount
24transferred during such month to the Build Illinois Fund from
25the State and Local Sales Tax Reform Fund shall have been less
26than 1/12 of the Annual Specified Amount, an amount equal to

SB3445 Enrolled- 195 -LRB100 20331 HLH 35618 b
1the difference shall be immediately paid into the Build
2Illinois Fund from other moneys received by the Department
3pursuant to the Tax Acts; and, further provided, that in no
4event shall the payments required under the preceding proviso
5result in aggregate payments into the Build Illinois Fund
6pursuant to this clause (b) for any fiscal year in excess of
7the greater of (i) the Tax Act Amount or (ii) the Annual
8Specified Amount for such fiscal year; and, further provided,
9that the amounts payable into the Build Illinois Fund under
10this clause (b) shall be payable only until such time as the
11aggregate amount on deposit under each trust indenture securing
12Bonds issued and outstanding pursuant to the Build Illinois
13Bond Act is sufficient, taking into account any future
14investment income, to fully provide, in accordance with such
15indenture, for the defeasance of or the payment of the
16principal of, premium, if any, and interest on the Bonds
17secured by such indenture and on any Bonds expected to be
18issued thereafter and all fees and costs payable with respect
19thereto, all as certified by the Director of the Bureau of the
20Budget (now Governor's Office of Management and Budget). If on
21the last business day of any month in which Bonds are
22outstanding pursuant to the Build Illinois Bond Act, the
23aggregate of the moneys deposited in the Build Illinois Bond
24Account in the Build Illinois Fund in such month shall be less
25than the amount required to be transferred in such month from
26the Build Illinois Bond Account to the Build Illinois Bond

SB3445 Enrolled- 196 -LRB100 20331 HLH 35618 b
1Retirement and Interest Fund pursuant to Section 13 of the
2Build Illinois Bond Act, an amount equal to such deficiency
3shall be immediately paid from other moneys received by the
4Department pursuant to the Tax Acts to the Build Illinois Fund;
5provided, however, that any amounts paid to the Build Illinois
6Fund in any fiscal year pursuant to this sentence shall be
7deemed to constitute payments pursuant to clause (b) of the
8preceding sentence and shall reduce the amount otherwise
9payable for such fiscal year pursuant to clause (b) of the
10preceding sentence. The moneys received by the Department
11pursuant to this Act and required to be deposited into the
12Build Illinois Fund are subject to the pledge, claim and charge
13set forth in Section 12 of the Build Illinois Bond Act.
14 Subject to payment of amounts into the Build Illinois Fund
15as provided in the preceding paragraph or in any amendment
16thereto hereafter enacted, the following specified monthly
17installment of the amount requested in the certificate of the
18Chairman of the Metropolitan Pier and Exposition Authority
19provided under Section 8.25f of the State Finance Act, but not
20in excess of the sums designated as "Total Deposit", shall be
21deposited in the aggregate from collections under Section 9 of
22the Use Tax Act, Section 9 of the Service Use Tax Act, Section
239 of the Service Occupation Tax Act, and Section 3 of the
24Retailers' Occupation Tax Act into the McCormick Place
25Expansion Project Fund in the specified fiscal years.

SB3445 Enrolled- 197 -LRB100 20331 HLH 35618 b
1Fiscal YearTotal Deposit
21993 $0
31994 53,000,000
41995 58,000,000
51996 61,000,000
61997 64,000,000
71998 68,000,000
81999 71,000,000
92000 75,000,000
102001 80,000,000
112002 93,000,000
122003 99,000,000
132004103,000,000
142005108,000,000
152006113,000,000
162007119,000,000
172008126,000,000
182009132,000,000
192010139,000,000
202011146,000,000
212012153,000,000
222013161,000,000
232014170,000,000
242015179,000,000
252016189,000,000

SB3445 Enrolled- 198 -LRB100 20331 HLH 35618 b
12017199,000,000
22018210,000,000
32019221,000,000
42020233,000,000
52021246,000,000
62022260,000,000
72023275,000,000
82024 275,000,000
92025 275,000,000
102026 279,000,000
112027 292,000,000
122028 307,000,000
132029 322,000,000
142030 338,000,000
152031 350,000,000
162032 350,000,000
17and
18each fiscal year
19thereafter that bonds
20are outstanding under
21Section 13.2 of the
22Metropolitan Pier and
23Exposition Authority Act,
24but not after fiscal year 2060.
25 Beginning July 20, 1993 and in each month of each fiscal
26year thereafter, one-eighth of the amount requested in the

SB3445 Enrolled- 199 -LRB100 20331 HLH 35618 b
1certificate of the Chairman of the Metropolitan Pier and
2Exposition Authority for that fiscal year, less the amount
3deposited into the McCormick Place Expansion Project Fund by
4the State Treasurer in the respective month under subsection
5(g) of Section 13 of the Metropolitan Pier and Exposition
6Authority Act, plus cumulative deficiencies in the deposits
7required under this Section for previous months and years,
8shall be deposited into the McCormick Place Expansion Project
9Fund, until the full amount requested for the fiscal year, but
10not in excess of the amount specified above as "Total Deposit",
11has been deposited.
12 Subject to payment of amounts into the Build Illinois Fund
13and the McCormick Place Expansion Project Fund pursuant to the
14preceding paragraphs or in any amendments thereto hereafter
15enacted, beginning July 1, 1993 and ending on September 30,
162013, the Department shall each month pay into the Illinois Tax
17Increment Fund 0.27% of 80% of the net revenue realized for the
18preceding month from the 6.25% general rate on the selling
19price of tangible personal property.
20 Subject to payment of amounts into the Build Illinois Fund
21and the McCormick Place Expansion Project Fund pursuant to the
22preceding paragraphs or in any amendments thereto hereafter
23enacted, beginning with the receipt of the first report of
24taxes paid by an eligible business and continuing for a 25-year
25period, the Department shall each month pay into the Energy
26Infrastructure Fund 80% of the net revenue realized from the

SB3445 Enrolled- 200 -LRB100 20331 HLH 35618 b
16.25% general rate on the selling price of Illinois-mined coal
2that was sold to an eligible business. For purposes of this
3paragraph, the term "eligible business" means a new electric
4generating facility certified pursuant to Section 605-332 of
5the Department of Commerce and Economic Opportunity Law of the
6Civil Administrative Code of Illinois.
7 Subject to payment of amounts into the Build Illinois Fund,
8the McCormick Place Expansion Project Fund, the Illinois Tax
9Increment Fund, and the Energy Infrastructure Fund pursuant to
10the preceding paragraphs or in any amendments to this Section
11hereafter enacted, beginning on the first day of the first
12calendar month to occur on or after August 26, 2014 (the
13effective date of Public Act 98-1098) this amendatory Act of
14the 98th General Assembly, each month, from the collections
15made under Section 9 of the Use Tax Act, Section 9 of the
16Service Use Tax Act, Section 9 of the Service Occupation Tax
17Act, and Section 3 of the Retailers' Occupation Tax Act, the
18Department shall pay into the Tax Compliance and Administration
19Fund, to be used, subject to appropriation, to fund additional
20auditors and compliance personnel at the Department of Revenue,
21an amount equal to 1/12 of 5% of 80% of the cash receipts
22collected during the preceding fiscal year by the Audit Bureau
23of the Department under the Use Tax Act, the Service Use Tax
24Act, the Service Occupation Tax Act, the Retailers' Occupation
25Tax Act, and associated local occupation and use taxes
26administered by the Department.

SB3445 Enrolled- 201 -LRB100 20331 HLH 35618 b
1 Subject to payments of amounts into the Build Illinois
2Fund, the McCormick Place Expansion Project Fund, the Illinois
3Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
4Compliance and Administration Fund as provided in this Section,
5beginning on July 1, 2018 the Department shall pay each month
6into the Downstate Public Transportation Fund the moneys
7required to be so paid under Section 2-3 of the Downstate
8Public Transportation Act.
9 Of the remainder of the moneys received by the Department
10pursuant to this Act, 75% shall be paid into the General
11Revenue Fund of the State Treasury and 25% shall be reserved in
12a special account and used only for the transfer to the Common
13School Fund as part of the monthly transfer from the General
14Revenue Fund in accordance with Section 8a of the State Finance
15Act.
16 The Department may, upon separate written notice to a
17taxpayer, require the taxpayer to prepare and file with the
18Department on a form prescribed by the Department within not
19less than 60 days after receipt of the notice an annual
20information return for the tax year specified in the notice.
21Such annual return to the Department shall include a statement
22of gross receipts as shown by the taxpayer's last Federal
23income tax return. If the total receipts of the business as
24reported in the Federal income tax return do not agree with the
25gross receipts reported to the Department of Revenue for the
26same period, the taxpayer shall attach to his annual return a

SB3445 Enrolled- 202 -LRB100 20331 HLH 35618 b
1schedule showing a reconciliation of the 2 amounts and the
2reasons for the difference. The taxpayer's annual return to the
3Department shall also disclose the cost of goods sold by the
4taxpayer during the year covered by such return, opening and
5closing inventories of such goods for such year, cost of goods
6used from stock or taken from stock and given away by the
7taxpayer during such year, pay roll information of the
8taxpayer's business during such year and any additional
9reasonable information which the Department deems would be
10helpful in determining the accuracy of the monthly, quarterly
11or annual returns filed by such taxpayer as hereinbefore
12provided for in this Section.
13 If the annual information return required by this Section
14is not filed when and as required, the taxpayer shall be liable
15as follows:
16 (i) Until January 1, 1994, the taxpayer shall be liable
17 for a penalty equal to 1/6 of 1% of the tax due from such
18 taxpayer under this Act during the period to be covered by
19 the annual return for each month or fraction of a month
20 until such return is filed as required, the penalty to be
21 assessed and collected in the same manner as any other
22 penalty provided for in this Act.
23 (ii) On and after January 1, 1994, the taxpayer shall
24 be liable for a penalty as described in Section 3-4 of the
25 Uniform Penalty and Interest Act.
26 The chief executive officer, proprietor, owner or highest

SB3445 Enrolled- 203 -LRB100 20331 HLH 35618 b
1ranking manager shall sign the annual return to certify the
2accuracy of the information contained therein. Any person who
3willfully signs the annual return containing false or
4inaccurate information shall be guilty of perjury and punished
5accordingly. The annual return form prescribed by the
6Department shall include a warning that the person signing the
7return may be liable for perjury.
8 The foregoing portion of this Section concerning the filing
9of an annual information return shall not apply to a serviceman
10who is not required to file an income tax return with the
11United States Government.
12 As soon as possible after the first day of each month, upon
13certification of the Department of Revenue, the Comptroller
14shall order transferred and the Treasurer shall transfer from
15the General Revenue Fund to the Motor Fuel Tax Fund an amount
16equal to 1.7% of 80% of the net revenue realized under this Act
17for the second preceding month. Beginning April 1, 2000, this
18transfer is no longer required and shall not be made.
19 Net revenue realized for a month shall be the revenue
20collected by the State pursuant to this Act, less the amount
21paid out during that month as refunds to taxpayers for
22overpayment of liability.
23 For greater simplicity of administration, it shall be
24permissible for manufacturers, importers and wholesalers whose
25products are sold by numerous servicemen in Illinois, and who
26wish to do so, to assume the responsibility for accounting and

SB3445 Enrolled- 204 -LRB100 20331 HLH 35618 b
1paying to the Department all tax accruing under this Act with
2respect to such sales, if the servicemen who are affected do
3not make written objection to the Department to this
4arrangement.
5(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
6100-303, eff. 8-24-17; 100-363, eff. 7-1-18; revised
710-31-17.)
8 Section 45. The Retailers' Occupation Tax Act is amended by
9changing Sections 2-5, 2-5.5, 3, and 5j as follows:
10 (35 ILCS 120/2-5)
11 Sec. 2-5. Exemptions. Gross receipts from proceeds from the
12sale of the following tangible personal property are exempt
13from the tax imposed by this Act:
14 (1) Farm chemicals.
15 (2) Farm machinery and equipment, both new and used,
16 including that manufactured on special order, certified by
17 the purchaser to be used primarily for production
18 agriculture or State or federal agricultural programs,
19 including individual replacement parts for the machinery
20 and equipment, including machinery and equipment purchased
21 for lease, and including implements of husbandry defined in
22 Section 1-130 of the Illinois Vehicle Code, farm machinery
23 and agricultural chemical and fertilizer spreaders, and
24 nurse wagons required to be registered under Section 3-809

SB3445 Enrolled- 205 -LRB100 20331 HLH 35618 b
1 of the Illinois Vehicle Code, but excluding other motor
2 vehicles required to be registered under the Illinois
3 Vehicle Code. Horticultural polyhouses or hoop houses used
4 for propagating, growing, or overwintering plants shall be
5 considered farm machinery and equipment under this item
6 (2). Agricultural chemical tender tanks and dry boxes shall
7 include units sold separately from a motor vehicle required
8 to be licensed and units sold mounted on a motor vehicle
9 required to be licensed, if the selling price of the tender
10 is separately stated.
11 Farm machinery and equipment shall include precision
12 farming equipment that is installed or purchased to be
13 installed on farm machinery and equipment including, but
14 not limited to, tractors, harvesters, sprayers, planters,
15 seeders, or spreaders. Precision farming equipment
16 includes, but is not limited to, soil testing sensors,
17 computers, monitors, software, global positioning and
18 mapping systems, and other such equipment.
19 Farm machinery and equipment also includes computers,
20 sensors, software, and related equipment used primarily in
21 the computer-assisted operation of production agriculture
22 facilities, equipment, and activities such as, but not
23 limited to, the collection, monitoring, and correlation of
24 animal and crop data for the purpose of formulating animal
25 diets and agricultural chemicals. This item (2) is exempt
26 from the provisions of Section 2-70.

SB3445 Enrolled- 206 -LRB100 20331 HLH 35618 b
1 (3) Until July 1, 2003, distillation machinery and
2 equipment, sold as a unit or kit, assembled or installed by
3 the retailer, certified by the user to be used only for the
4 production of ethyl alcohol that will be used for
5 consumption as motor fuel or as a component of motor fuel
6 for the personal use of the user, and not subject to sale
7 or resale.
8 (4) Until July 1, 2003 and beginning again September 1,
9 2004 through August 30, 2014, graphic arts machinery and
10 equipment, including repair and replacement parts, both
11 new and used, and including that manufactured on special
12 order or purchased for lease, certified by the purchaser to
13 be used primarily for graphic arts production. Equipment
14 includes chemicals or chemicals acting as catalysts but
15 only if the chemicals or chemicals acting as catalysts
16 effect a direct and immediate change upon a graphic arts
17 product. Beginning on July 1, 2017, graphic arts machinery
18 and equipment is included in the manufacturing and
19 assembling machinery and equipment exemption under
20 paragraph (14).
21 (5) A motor vehicle that is used for automobile
22 renting, as defined in the Automobile Renting Occupation
23 and Use Tax Act. This paragraph is exempt from the
24 provisions of Section 2-70.
25 (6) Personal property sold by a teacher-sponsored
26 student organization affiliated with an elementary or

SB3445 Enrolled- 207 -LRB100 20331 HLH 35618 b
1 secondary school located in Illinois.
2 (7) Until July 1, 2003, proceeds of that portion of the
3 selling price of a passenger car the sale of which is
4 subject to the Replacement Vehicle Tax.
5 (8) Personal property sold to an Illinois county fair
6 association for use in conducting, operating, or promoting
7 the county fair.
8 (9) Personal property sold to a not-for-profit arts or
9 cultural organization that establishes, by proof required
10 by the Department by rule, that it has received an
11 exemption under Section 501(c)(3) of the Internal Revenue
12 Code and that is organized and operated primarily for the
13 presentation or support of arts or cultural programming,
14 activities, or services. These organizations include, but
15 are not limited to, music and dramatic arts organizations
16 such as symphony orchestras and theatrical groups, arts and
17 cultural service organizations, local arts councils,
18 visual arts organizations, and media arts organizations.
19 On and after July 1, 2001 (the effective date of Public Act
20 92-35) this amendatory Act of the 92nd General Assembly,
21 however, an entity otherwise eligible for this exemption
22 shall not make tax-free purchases unless it has an active
23 identification number issued by the Department.
24 (10) Personal property sold by a corporation, society,
25 association, foundation, institution, or organization,
26 other than a limited liability company, that is organized

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1 and operated as a not-for-profit service enterprise for the
2 benefit of persons 65 years of age or older if the personal
3 property was not purchased by the enterprise for the
4 purpose of resale by the enterprise.
5 (11) Personal property sold to a governmental body, to
6 a corporation, society, association, foundation, or
7 institution organized and operated exclusively for
8 charitable, religious, or educational purposes, or to a
9 not-for-profit corporation, society, association,
10 foundation, institution, or organization that has no
11 compensated officers or employees and that is organized and
12 operated primarily for the recreation of persons 55 years
13 of age or older. A limited liability company may qualify
14 for the exemption under this paragraph only if the limited
15 liability company is organized and operated exclusively
16 for educational purposes. On and after July 1, 1987,
17 however, no entity otherwise eligible for this exemption
18 shall make tax-free purchases unless it has an active
19 identification number issued by the Department.
20 (12) (Blank).
21 (12-5) On and after July 1, 2003 and through June 30,
22 2004, motor vehicles of the second division with a gross
23 vehicle weight in excess of 8,000 pounds that are subject
24 to the commercial distribution fee imposed under Section
25 3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
26 2004 and through June 30, 2005, the use in this State of

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

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1 sale or lease is made directly by the manufacturer or by
2 some other person, whether the materials used in the
3 process are owned by the manufacturer or some other person,
4 or whether the sale or lease is made apart from or as an
5 incident to the seller's engaging in the service occupation
6 of producing machines, tools, dies, jigs, patterns,
7 gauges, or other similar items of no commercial value on
8 special order for a particular purchaser. The exemption
9 provided by this paragraph (14) does not include machinery
10 and equipment used in (i) the generation of electricity for
11 wholesale or retail sale; (ii) the generation or treatment
12 of natural or artificial gas for wholesale or retail sale
13 that is delivered to customers through pipes, pipelines, or
14 mains; or (iii) the treatment of water for wholesale or
15 retail sale that is delivered to customers through pipes,
16 pipelines, or mains. The provisions of Public Act 98-583
17 are declaratory of existing law as to the meaning and scope
18 of this exemption. Beginning on July 1, 2017, the exemption
19 provided by this paragraph (14) includes, but is not
20 limited to, graphic arts machinery and equipment, as
21 defined in paragraph (4) of this Section.
22 (15) Proceeds of mandatory service charges separately
23 stated on customers' bills for purchase and consumption of
24 food and beverages, to the extent that the proceeds of the
25 service charge are in fact turned over as tips or as a
26 substitute for tips to the employees who participate

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1 directly in preparing, serving, hosting or cleaning up the
2 food or beverage function with respect to which the service
3 charge is imposed.
4 (16) Tangible personal property Petroleum products
5 sold to a purchaser if the purchaser is exempt from use tax
6 seller is prohibited by operation of federal law from
7 charging tax to the purchaser. This paragraph is exempt
8 from the provisions of Section 2-70.
9 (17) Tangible personal property sold to a common
10 carrier by rail or motor that receives the physical
11 possession of the property in Illinois and that transports
12 the property, or shares with another common carrier in the
13 transportation of the property, out of Illinois on a
14 standard uniform bill of lading showing the seller of the
15 property as the shipper or consignor of the property to a
16 destination outside Illinois, for use outside Illinois.
17 (18) Legal tender, currency, medallions, or gold or
18 silver coinage issued by the State of Illinois, the
19 government of the United States of America, or the
20 government of any foreign country, and bullion.
21 (19) Until July 1, 2003, oil field exploration,
22 drilling, and production equipment, including (i) rigs and
23 parts of rigs, rotary rigs, cable tool rigs, and workover
24 rigs, (ii) pipe and tubular goods, including casing and
25 drill strings, (iii) pumps and pump-jack units, (iv)
26 storage tanks and flow lines, (v) any individual

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1 replacement part for oil field exploration, drilling, and
2 production equipment, and (vi) machinery and equipment
3 purchased for lease; but excluding motor vehicles required
4 to be registered under the Illinois Vehicle Code.
5 (20) Photoprocessing machinery and equipment,
6 including repair and replacement parts, both new and used,
7 including that manufactured on special order, certified by
8 the purchaser to be used primarily for photoprocessing, and
9 including photoprocessing machinery and equipment
10 purchased for lease.
11 (21) Coal and aggregate exploration, mining,
12 off-highway hauling, processing, maintenance, and
13 reclamation equipment, including replacement parts and
14 equipment, and including equipment purchased for lease,
15 but excluding motor vehicles required to be registered
16 under the Illinois Vehicle Code. The changes made to this
17 Section by Public Act 97-767 apply on and after July 1,
18 2003, but no claim for credit or refund is allowed on or
19 after August 16, 2013 (the effective date of Public Act
20 98-456) for such taxes paid during the period beginning
21 July 1, 2003 and ending on August 16, 2013 (the effective
22 date of Public Act 98-456).
23 (22) Until June 30, 2013, fuel and petroleum products
24 sold to or used by an air carrier, certified by the carrier
25 to be used for consumption, shipment, or storage in the
26 conduct of its business as an air common carrier, for a

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1 flight destined for or returning from a location or
2 locations outside the United States without regard to
3 previous or subsequent domestic stopovers.
4 Beginning July 1, 2013, fuel and petroleum products
5 sold to or used by an air carrier, certified by the carrier
6 to be used for consumption, shipment, or storage in the
7 conduct of its business as an air common carrier, for a
8 flight that (i) is engaged in foreign trade or is engaged
9 in trade between the United States and any of its
10 possessions and (ii) transports at least one individual or
11 package for hire from the city of origination to the city
12 of final destination on the same aircraft, without regard
13 to a change in the flight number of that aircraft.
14 (23) A transaction in which the purchase order is
15 received by a florist who is located outside Illinois, but
16 who has a florist located in Illinois deliver the property
17 to the purchaser or the purchaser's donee in Illinois.
18 (24) Fuel consumed or used in the operation of ships,
19 barges, or vessels that are used primarily in or for the
20 transportation of property or the conveyance of persons for
21 hire on rivers bordering on this State if the fuel is
22 delivered by the seller to the purchaser's barge, ship, or
23 vessel while it is afloat upon that bordering river.
24 (25) Except as provided in item (25-5) of this Section,
25 a motor vehicle sold in this State to a nonresident even
26 though the motor vehicle is delivered to the nonresident in

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1 this State, if the motor vehicle is not to be titled in
2 this State, and if a drive-away permit is issued to the
3 motor vehicle as provided in Section 3-603 of the Illinois
4 Vehicle Code or if the nonresident purchaser has vehicle
5 registration plates to transfer to the motor vehicle upon
6 returning to his or her home state. The issuance of the
7 drive-away permit or having the out-of-state registration
8 plates to be transferred is prima facie evidence that the
9 motor vehicle will not be titled in this State.
10 (25-5) The exemption under item (25) does not apply if
11 the state in which the motor vehicle will be titled does
12 not allow a reciprocal exemption for a motor vehicle sold
13 and delivered in that state to an Illinois resident but
14 titled in Illinois. The tax collected under this Act on the
15 sale of a motor vehicle in this State to a resident of
16 another state that does not allow a reciprocal exemption
17 shall be imposed at a rate equal to the state's rate of tax
18 on taxable property in the state in which the purchaser is
19 a resident, except that the tax shall not exceed the tax
20 that would otherwise be imposed under this Act. At the time
21 of the sale, the purchaser shall execute a statement,
22 signed under penalty of perjury, of his or her intent to
23 title the vehicle in the state in which the purchaser is a
24 resident within 30 days after the sale and of the fact of
25 the payment to the State of Illinois of tax in an amount
26 equivalent to the state's rate of tax on taxable property

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1 in his or her state of residence and shall submit the
2 statement to the appropriate tax collection agency in his
3 or her state of residence. In addition, the retailer must
4 retain a signed copy of the statement in his or her
5 records. Nothing in this item shall be construed to require
6 the removal of the vehicle from this state following the
7 filing of an intent to title the vehicle in the purchaser's
8 state of residence if the purchaser titles the vehicle in
9 his or her state of residence within 30 days after the date
10 of sale. The tax collected under this Act in accordance
11 with this item (25-5) shall be proportionately distributed
12 as if the tax were collected at the 6.25% general rate
13 imposed under this Act.
14 (25-7) Beginning on July 1, 2007, no tax is imposed
15 under this Act on the sale of an aircraft, as defined in
16 Section 3 of the Illinois Aeronautics Act, if all of the
17 following conditions are met:
18 (1) the aircraft leaves this State within 15 days
19 after the later of either the issuance of the final
20 billing for the sale of the aircraft, or the authorized
21 approval for return to service, completion of the
22 maintenance record entry, and completion of the test
23 flight and ground test for inspection, as required by
24 14 C.F.R. 91.407;
25 (2) the aircraft is not based or registered in this
26 State after the sale of the aircraft; and

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1 (3) the seller retains in his or her books and
2 records and provides to the Department a signed and
3 dated certification from the purchaser, on a form
4 prescribed by the Department, certifying that the
5 requirements of this item (25-7) are met. The
6 certificate must also include the name and address of
7 the purchaser, the address of the location where the
8 aircraft is to be titled or registered, the address of
9 the primary physical location of the aircraft, and
10 other information that the Department may reasonably
11 require.
12 For purposes of this item (25-7):
13 "Based in this State" means hangared, stored, or
14 otherwise used, excluding post-sale customizations as
15 defined in this Section, for 10 or more days in each
16 12-month period immediately following the date of the sale
17 of the aircraft.
18 "Registered in this State" means an aircraft
19 registered with the Department of Transportation,
20 Aeronautics Division, or titled or registered with the
21 Federal Aviation Administration to an address located in
22 this State.
23 This paragraph (25-7) is exempt from the provisions of
24 Section 2-70.
25 (26) Semen used for artificial insemination of
26 livestock for direct agricultural production.

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

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

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1 a "game breeding and hunting preserve area" as that term is
2 used in the Wildlife Code. This paragraph is exempt from
3 the provisions of Section 2-70.
4 (33) A motor vehicle, as that term is defined in
5 Section 1-146 of the Illinois Vehicle Code, that is donated
6 to a corporation, limited liability company, society,
7 association, foundation, or institution that is determined
8 by the Department to be organized and operated exclusively
9 for educational purposes. For purposes of this exemption,
10 "a corporation, limited liability company, society,
11 association, foundation, or institution organized and
12 operated exclusively for educational purposes" means all
13 tax-supported public schools, private schools that offer
14 systematic instruction in useful branches of learning by
15 methods common to public schools and that compare favorably
16 in their scope and intensity with the course of study
17 presented in tax-supported schools, and vocational or
18 technical schools or institutes organized and operated
19 exclusively to provide a course of study of not less than 6
20 weeks duration and designed to prepare individuals to
21 follow a trade or to pursue a manual, technical,
22 mechanical, industrial, business, or commercial
23 occupation.
24 (34) Beginning January 1, 2000, personal property,
25 including food, purchased through fundraising events for
26 the benefit of a public or private elementary or secondary

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1 school, a group of those schools, or one or more school
2 districts if the events are sponsored by an entity
3 recognized by the school district that consists primarily
4 of volunteers and includes parents and teachers of the
5 school children. This paragraph does not apply to
6 fundraising events (i) for the benefit of private home
7 instruction or (ii) for which the fundraising entity
8 purchases the personal property sold at the events from
9 another individual or entity that sold the property for the
10 purpose of resale by the fundraising entity and that
11 profits from the sale to the fundraising entity. This
12 paragraph is exempt from the provisions of Section 2-70.
13 (35) Beginning January 1, 2000 and through December 31,
14 2001, new or used automatic vending machines that prepare
15 and serve hot food and beverages, including coffee, soup,
16 and other items, and replacement parts for these machines.
17 Beginning January 1, 2002 and through June 30, 2003,
18 machines and parts for machines used in commercial,
19 coin-operated amusement and vending business if a use or
20 occupation tax is paid on the gross receipts derived from
21 the use of the commercial, coin-operated amusement and
22 vending machines. This paragraph is exempt from the
23 provisions of Section 2-70.
24 (35-5) Beginning August 23, 2001 and through June 30,
25 2016, food for human consumption that is to be consumed off
26 the premises where it is sold (other than alcoholic

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

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1 exempt from the provisions of Section 2-70.
2 (38) Beginning on January 1, 2002 and through June 30,
3 2016, tangible personal property purchased from an
4 Illinois retailer by a taxpayer engaged in centralized
5 purchasing activities in Illinois who will, upon receipt of
6 the property in Illinois, temporarily store the property in
7 Illinois (i) for the purpose of subsequently transporting
8 it outside this State for use or consumption thereafter
9 solely outside this State or (ii) for the purpose of being
10 processed, fabricated, or manufactured into, attached to,
11 or incorporated into other tangible personal property to be
12 transported outside this State and thereafter used or
13 consumed solely outside this State. The Director of Revenue
14 shall, pursuant to rules adopted in accordance with the
15