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

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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: (Passed) 2019-01-04 - Public Act . . . . . . . . . 100-1171 [SB3445 Detail]

Download: Illinois-2017-SB3445-Introduced.html

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100TH GENERAL ASSEMBLY State of Illinois 2017 and 2018 SB3445 Introduced 2/16/2018, by Sen. Pamela J. Althoff SYNOPSIS AS INTRODUCED:
See Index
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.
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FISCAL NOTE ACT MAY APPLY
A BILL FOR
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AN ACT concerning revenue.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 5. The Renewable Energy, Energy Efficiency, and
Coal Resources Development Law of 1997 is amended by changing
Section 6-5 and by adding Section 6-8 as follows:
(20 ILCS 687/6-5)
(Section scheduled to be repealed on December 31, 2020)
Sec. 6-5. Renewable Energy Resources and Coal Technology
Development Assistance Charge.
(a) Notwithstanding the provisions of Section 16-111 of the
Public Utilities Act but subject to subsection (e) of this
Section, each public utility, electric cooperative, as defined
in Section 3.4 of the Electric Supplier Act, and municipal
utility, as referenced in Section 3-105 of the Public Utilities
Act, that is engaged in the delivery of electricity or the
distribution of natural gas within the State of Illinois shall,
effective January 1, 1998, assess each of its customer accounts
a monthly Renewable Energy Resources and Coal Technology
Development Assistance Charge. The delivering public utility,
municipal electric or gas utility, or electric or gas
cooperative for a self-assessing purchaser remains subject to
the collection of the fee imposed by this Section. The monthly

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

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

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

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5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12,
and 13 of the Retailers' Occupation Tax Act that are not
inconsistent with this Act apply, as far as practicable, to the
surcharge imposed by this Act to the same extent as if those
provisions were included in this Act. References in the
incorporated Sections of the Retailers' Occupation Tax Act to
retailers, to sellers, or to persons engaged in the business of
selling tangible personal property mean persons required to
remit the charge imposed under this Act.
(20 ILCS 715/10 rep.)
Section 10. The Corporate Accountability for Tax
Expenditures Act is amended by repealing Section 10.
Section 15. The Department of Revenue Law of the Civil
Administrative Code of Illinois is amended by changing Section
2505-210 as follows:
(20 ILCS 2505/2505-210) (was 20 ILCS 2505/39c-1)
Sec. 2505-210. Electronic funds transfer.
(a) The Department may provide means by which persons
having a tax liability under any Act administered by the
Department may use electronic funds transfer to pay the tax
liability.
(b) Mandatory payment by electronic funds transfer.
Beginning on October 1, 2002, and through September 30, 2010, a

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taxpayer who has an annual tax liability of $200,000 or more
shall make all payments of that tax to the Department by
electronic funds transfer. Beginning October 1, 2010, a
taxpayer (other than an individual taxpayer) who has an annual
tax liability of $20,000 or more and an individual taxpayer who
has an annual tax liability of $200,000 or more shall make all
payments of that tax to the Department by electronic funds
transfer. Before August 1 of each year, beginning in 2002, the
Department shall notify all taxpayers required to make payments
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1. For purposes
of this subsection (b), the term "annual tax liability" means,
except as provided in subsections (c) and (d) of this Section,
the sum of the taxpayer's liabilities under a tax Act
administered by the Department, except the Motor Fuel Tax Law
and the Environmental Impact Fee Law, for the immediately
preceding calendar year.
(c) For purposes of subsection (b), the term "annual tax
liability" means, for a taxpayer that incurs a tax liability
under the Retailers' Occupation Tax Act, Service Occupation Tax
Act, Use Tax Act, Service Use Tax Act, or any other State or
local occupation or use tax law that is administered by the
Department, the sum of the taxpayer's liabilities under the
Retailers' Occupation Tax Act, Service Occupation Tax Act, Use
Tax Act, Service Use Tax Act, and all other State and local

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occupation and use tax laws administered by the Department for
the immediately preceding calendar year.
(d) For purposes of subsection (b), the term "annual tax
liability" means, for a taxpayer that incurs an Illinois income
tax liability, the greater of:
(1) the amount of the taxpayer's tax liability under
Article 7 of the Illinois Income Tax Act for the
immediately preceding calendar year; or
(2) the taxpayer's estimated tax payment obligation
under Article 8 of the Illinois Income Tax Act for the
immediately preceding calendar year.
(e) The Department shall adopt such rules as are necessary
to effectuate a program of electronic funds transfer and the
requirements of this Section.
(Source: P.A. 96-1027, eff. 7-12-10.)
Section 20. The State Finance Act is amended by changing
Section 6z-18 as follows:
(30 ILCS 105/6z-18) (from Ch. 127, par. 142z-18)
Sec. 6z-18. Local Government Tax Fund. A portion of the
money paid into the Local Government Tax Fund from sales of
tangible personal property taxed at the 1% rate under the
Retailers' Occupation Tax Act and the Service Occupation Tax
Act food for human consumption which is to be consumed off the
premises where it is sold (other than alcoholic beverages, soft

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drinks and food which has been prepared for immediate
consumption) and prescription and nonprescription medicines,
drugs, medical appliances and insulin, urine testing
materials, syringes and needles used by diabetics, which
occurred in municipalities, shall be distributed to each
municipality based upon the sales which occurred in that
municipality. The remainder shall be distributed to each county
based upon the sales which occurred in the unincorporated area
of that county.
A portion of the money paid into the Local Government Tax
Fund from the 6.25% general use tax rate on the selling price
of tangible personal property which is purchased outside
Illinois at retail from a retailer and which is titled or
registered by any agency of this State's government shall be
distributed to municipalities as provided in this paragraph.
Each municipality shall receive the amount attributable to
sales for which Illinois addresses for titling or registration
purposes are given as being in such municipality. The remainder
of the money paid into the Local Government Tax Fund from such
sales shall be distributed to counties. Each county shall
receive the amount attributable to sales for which Illinois
addresses for titling or registration purposes are given as
being located in the unincorporated area of such county.
A portion of the money paid into the Local Government Tax
Fund from the 6.25% general rate (and, beginning July 1, 2000
and through December 31, 2000, the 1.25% rate on motor fuel and

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

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beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected during the second
preceding calendar month for sales within a STAR bond district
and deposited into the Local Government Tax Fund, less 3% of
that amount, which shall be transferred into the Tax Compliance
and Administration Fund and shall be used by the Department,
subject to appropriation, to cover the costs of the Department
in administering the Innovation Development and Economy Act.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities
and counties, the municipalities and counties to be those
entitled to distribution of taxes or penalties paid to the
Department during the second preceding calendar month. The
amount to be paid to each municipality or county shall be the
amount (not including credit memoranda) collected during the
second preceding calendar month by the Department and paid into
the Local Government Tax Fund, plus an amount the Department
determines is necessary to offset any amounts which were
erroneously paid to a different taxing body, and not including
an amount equal to the amount of refunds made during the second
preceding calendar month by the Department, and not including

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any amount which the Department determines is necessary to
offset any amounts which are payable to a different taxing body
but were erroneously paid to the municipality or county, and
not including any amounts that are transferred to the STAR
Bonds Revenue Fund. Within 10 days after receipt, by the
Comptroller, of the disbursement certification to the
municipalities and counties, provided for in this Section to be
given to the Comptroller by the Department, the Comptroller
shall cause the orders to be drawn for the respective amounts
in accordance with the directions contained in such
certification.
When certifying the amount of monthly disbursement to a
municipality or county under this Section, the Department shall
increase or decrease that amount by an amount necessary to
offset any misallocation of previous disbursements. The offset
amount shall be the amount erroneously disbursed within the 6
months preceding the time a misallocation is discovered.
The provisions directing the distributions from the
special fund in the State Treasury provided for in this Section
shall constitute an irrevocable and continuing appropriation
of all amounts as provided herein. The State Treasurer and
State Comptroller are hereby authorized to make distributions
as provided in this Section.
In construing any development, redevelopment, annexation,
preannexation or other lawful agreement in effect prior to
September 1, 1990, which describes or refers to receipts from a

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county or municipal retailers' occupation tax, use tax or
service occupation tax which now cannot be imposed, such
description or reference shall be deemed to include the
replacement revenue for such abolished taxes, distributed from
the Local Government Tax Fund.
As soon as possible after the effective date of this
amendatory Act of the 98th General Assembly, the State
Comptroller shall order and the State Treasurer shall transfer
$6,600,000 from the Local Government Tax Fund to the Illinois
State Medical Disciplinary Fund.
(Source: P.A. 97-333, eff. 8-12-11; 98-3, eff. 3-8-13.)
Section 25. The Illinois Income Tax Act is amended by
changing Section 901 and by adding Section 703A as follows:
(35 ILCS 5/703A new)
Sec. 703A. Information for reportable payment
transactions. Every person required under Section 6050W of the
Internal Revenue Code to file federal Form 1099-K, Third-Party
Payment Card and Third Party Network Transactions, identifying
a reportable payment transaction to a payee with an Illinois
address shall furnish a copy to the Department at such time and
in such manner as the Department may prescribe.
(35 ILCS 5/901) (from Ch. 120, par. 9-901)
Sec. 901. Collection authority.

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(a) In general. The Department shall collect the taxes
imposed by this Act. The Department shall collect certified
past due child support amounts under Section 2505-650 of the
Department of Revenue Law of the Civil Administrative Code of
Illinois. Except as provided in subsections (b), (c), (e), (f),
(g), and (h) of this Section, money collected pursuant to
subsections (a) and (b) of Section 201 of this Act shall be
paid into the General Revenue Fund in the State treasury; money
collected pursuant to subsections (c) and (d) of Section 201 of
this Act shall be paid into the Personal Property Tax
Replacement Fund, a special fund in the State Treasury; and
money collected under Section 2505-650 of the Department of
Revenue Law of the Civil Administrative Code of Illinois (20
ILCS 2505/2505-650) shall be paid into the Child Support
Enforcement Trust Fund, a special fund outside the State
Treasury, or to the State Disbursement Unit established under
Section 10-26 of the Illinois Public Aid Code, as directed by
the Department of Healthcare and Family Services.
(b) Local Government Distributive Fund. Beginning August
1, 1969, and continuing through June 30, 1994, the Treasurer
shall transfer each month from the General Revenue Fund to a
special fund in the State treasury, to be known as the "Local
Government Distributive Fund", an amount equal to 1/12 of the
net revenue realized from the tax imposed by subsections (a)
and (b) of Section 201 of this Act during the preceding month.
Beginning July 1, 1994, and continuing through June 30, 1995,

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the Treasurer shall transfer each month from the General
Revenue Fund to the Local Government Distributive Fund an
amount equal to 1/11 of the net revenue realized from the tax
imposed by subsections (a) and (b) of Section 201 of this Act
during the preceding month. Beginning July 1, 1995 and
continuing through January 31, 2011, the Treasurer shall
transfer each month from the General Revenue Fund to the Local
Government Distributive Fund an amount equal to the net of (i)
1/10 of the net revenue realized from the tax imposed by
subsections (a) and (b) of Section 201 of the Illinois Income
Tax Act during the preceding month (ii) minus, beginning July
1, 2003 and ending June 30, 2004, $6,666,666, and beginning
July 1, 2004, zero. Beginning February 1, 2011, and continuing
through January 31, 2015, the Treasurer shall transfer each
month from the General Revenue Fund to the Local Government
Distributive Fund an amount equal to the sum of (i) 6% (10% of
the ratio of the 3% individual income tax rate prior to 2011 to
the 5% individual income tax rate after 2010) of the net
revenue realized from the tax imposed by subsections (a) and
(b) of Section 201 of this Act upon individuals, trusts, and
estates during the preceding month and (ii) 6.86% (10% of the
ratio of the 4.8% corporate income tax rate prior to 2011 to
the 7% corporate income tax rate after 2010) of the net revenue
realized from the tax imposed by subsections (a) and (b) of
Section 201 of this Act upon corporations during the preceding
month. Beginning February 1, 2015 and continuing through July

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31, 2017, the Treasurer shall transfer each month from the
General Revenue Fund to the Local Government Distributive Fund
an amount equal to the sum of (i) 8% (10% of the ratio of the 3%
individual income tax rate prior to 2011 to the 3.75%
individual income tax rate after 2014) of the net revenue
realized from the tax imposed by subsections (a) and (b) of
Section 201 of this Act upon individuals, trusts, and estates
during the preceding month and (ii) 9.14% (10% of the ratio of
the 4.8% corporate income tax rate prior to 2011 to the 5.25%
corporate income tax rate after 2014) of the net revenue
realized from the tax imposed by subsections (a) and (b) of
Section 201 of this Act upon corporations during the preceding
month. Beginning August 1, 2017, the Treasurer shall transfer
each month from the General Revenue Fund to the Local
Government Distributive Fund an amount equal to the sum of (i)
6.06% (10% of the ratio of the 3% individual income tax rate
prior to 2011 to the 4.95% individual income tax rate after
July 1, 2017) of the net revenue realized from the tax imposed
by subsections (a) and (b) of Section 201 of this Act upon
individuals, trusts, and estates during the preceding month and
(ii) 6.85% (10% of the ratio of the 4.8% corporate income tax
rate prior to 2011 to the 7% corporate income tax rate after
July 1, 2017) of the net revenue realized from the tax imposed
by subsections (a) and (b) of Section 201 of this Act upon
corporations during the preceding month. Net revenue realized
for a month shall be defined as the revenue from the tax

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imposed by subsections (a) and (b) of Section 201 of this Act
which is deposited in the General Revenue Fund, the Education
Assistance Fund, the Income Tax Surcharge Local Government
Distributive Fund, the Fund for the Advancement of Education,
and the Commitment to Human Services Fund during the month
minus the amount paid out of the General Revenue Fund in State
warrants during that same month as refunds to taxpayers for
overpayment of liability under the tax imposed by subsections
(a) and (b) of Section 201 of this Act.
Notwithstanding any provision of law to the contrary,
beginning on July 6, 2017 (the effective date of Public Act
100-23) this amendatory Act of the 100th General Assembly,
those amounts required under this subsection (b) to be
transferred by the Treasurer into the Local Government
Distributive Fund from the General Revenue Fund shall be
directly deposited into the Local Government Distributive Fund
as the revenue is realized from the tax imposed by subsections
(a) and (b) of Section 201 of this Act.
For State fiscal year 2018 only, notwithstanding any
provision of law to the contrary, the total amount of revenue
and deposits under this Section attributable to revenues
realized during State fiscal year 2018 shall be reduced by 10%.
(c) Deposits Into Income Tax Refund Fund.
(1) Beginning on January 1, 1989 and thereafter, the
Department shall deposit a percentage of the amounts
collected pursuant to subsections (a) and (b)(1), (2), and

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(3), of Section 201 of this Act into a fund in the State
treasury known as the Income Tax Refund Fund. The
Department shall deposit 6% of such amounts during the
period beginning January 1, 1989 and ending on June 30,
1989. Beginning with State fiscal year 1990 and for each
fiscal year thereafter, the percentage deposited into the
Income Tax Refund Fund during a fiscal year shall be the
Annual Percentage. For fiscal years 1999 through 2001, the
Annual Percentage shall be 7.1%. For fiscal year 2003, the
Annual Percentage shall be 8%. For fiscal year 2004, the
Annual Percentage shall be 11.7%. Upon the effective date
of Public Act 93-839 (July 30, 2004) this amendatory Act of
the 93rd General Assembly, the Annual Percentage shall be
10% for fiscal year 2005. For fiscal year 2006, the Annual
Percentage shall be 9.75%. For fiscal year 2007, the Annual
Percentage shall be 9.75%. For fiscal year 2008, the Annual
Percentage shall be 7.75%. For fiscal year 2009, the Annual
Percentage shall be 9.75%. For fiscal year 2010, the Annual
Percentage shall be 9.75%. For fiscal year 2011, the Annual
Percentage shall be 8.75%. For fiscal year 2012, the Annual
Percentage shall be 8.75%. For fiscal year 2013, the Annual
Percentage shall be 9.75%. For fiscal year 2014, the Annual
Percentage shall be 9.5%. For fiscal year 2015, the Annual
Percentage shall be 10%. For fiscal year 2018, the Annual
Percentage shall be 9.8%. For all other fiscal years, the
Annual Percentage shall be calculated as a fraction, the

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numerator of which shall be the amount of refunds approved
for payment by the Department during the preceding fiscal
year as a result of overpayment of tax liability under
subsections (a) and (b)(1), (2), and (3) of Section 201 of
this Act plus the amount of such refunds remaining approved
but unpaid at the end of the preceding fiscal year, minus
the amounts transferred into the Income Tax Refund Fund
from the Tobacco Settlement Recovery Fund, and the
denominator of which shall be the amounts which will be
collected pursuant to subsections (a) and (b)(1), (2), and
(3) of Section 201 of this Act during the preceding fiscal
year; except that in State fiscal year 2002, the Annual
Percentage shall in no event exceed 7.6%. The Director of
Revenue shall certify the Annual Percentage to the
Comptroller on the last business day of the fiscal year
immediately preceding the fiscal year for which it is to be
effective.
(2) Beginning on January 1, 1989 and thereafter, the
Department shall deposit a percentage of the amounts
collected pursuant to subsections (a) and (b)(6), (7), and
(8), (c) and (d) of Section 201 of this Act into a fund in
the State treasury known as the Income Tax Refund Fund. The
Department shall deposit 18% of such amounts during the
period beginning January 1, 1989 and ending on June 30,
1989. Beginning with State fiscal year 1990 and for each
fiscal year thereafter, the percentage deposited into the

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Income Tax Refund Fund during a fiscal year shall be the
Annual Percentage. For fiscal years 1999, 2000, and 2001,
the Annual Percentage shall be 19%. For fiscal year 2003,
the Annual Percentage shall be 27%. For fiscal year 2004,
the Annual Percentage shall be 32%. Upon the effective date
of Public Act 93-839 (July 30, 2004) this amendatory Act of
the 93rd General Assembly, the Annual Percentage shall be
24% for fiscal year 2005. For fiscal year 2006, the Annual
Percentage shall be 20%. For fiscal year 2007, the Annual
Percentage shall be 17.5%. For fiscal year 2008, the Annual
Percentage shall be 15.5%. For fiscal year 2009, the Annual
Percentage shall be 17.5%. For fiscal year 2010, the Annual
Percentage shall be 17.5%. For fiscal year 2011, the Annual
Percentage shall be 17.5%. For fiscal year 2012, the Annual
Percentage shall be 17.5%. For fiscal year 2013, the Annual
Percentage shall be 14%. For fiscal year 2014, the Annual
Percentage shall be 13.4%. For fiscal year 2015, the Annual
Percentage shall be 14%. For fiscal year 2018, the Annual
Percentage shall be 17.5%. For all other fiscal years, the
Annual Percentage shall be calculated as a fraction, the
numerator of which shall be the amount of refunds approved
for payment by the Department during the preceding fiscal
year as a result of overpayment of tax liability under
subsections (a) and (b)(6), (7), and (8), (c) and (d) of
Section 201 of this Act plus the amount of such refunds
remaining approved but unpaid at the end of the preceding

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fiscal year, and the denominator of which shall be the
amounts which will be collected pursuant to subsections (a)
and (b)(6), (7), and (8), (c) and (d) of Section 201 of
this Act during the preceding fiscal year; except that in
State fiscal year 2002, the Annual Percentage shall in no
event exceed 23%. The Director of Revenue shall certify the
Annual Percentage to the Comptroller on the last business
day of the fiscal year immediately preceding the fiscal
year for which it is to be effective.
(3) The Comptroller shall order transferred and the
Treasurer shall transfer from the Tobacco Settlement
Recovery Fund to the Income Tax Refund Fund (i) $35,000,000
in January, 2001, (ii) $35,000,000 in January, 2002, and
(iii) $35,000,000 in January, 2003.
(d) Expenditures from Income Tax Refund Fund.
(1) Beginning January 1, 1989, money in the Income Tax
Refund Fund shall be expended exclusively for the purpose
of paying refunds resulting from overpayment of tax
liability under Section 201 of this Act, for paying rebates
under Section 208.1 in the event that the amounts in the
Homeowners' Tax Relief Fund are insufficient for that
purpose, and for making transfers pursuant to this
subsection (d).
(2) The Director shall order payment of refunds
resulting from overpayment of tax liability under Section
201 of this Act from the Income Tax Refund Fund only to the

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extent that amounts collected pursuant to Section 201 of
this Act and transfers pursuant to this subsection (d) and
item (3) of subsection (c) have been deposited and retained
in the Fund.
(3) As soon as possible after the end of each fiscal
year, the Director shall order transferred and the State
Treasurer and State Comptroller shall transfer from the
Income Tax Refund Fund to the Personal Property Tax
Replacement Fund an amount, certified by the Director to
the Comptroller, equal to the excess of the amount
collected pursuant to subsections (c) and (d) of Section
201 of this Act deposited into the Income Tax Refund Fund
during the fiscal year over the amount of refunds resulting
from overpayment of tax liability under subsections (c) and
(d) of Section 201 of this Act paid from the Income Tax
Refund Fund during the fiscal year.
(4) As soon as possible after the end of each fiscal
year, the Director shall order transferred and the State
Treasurer and State Comptroller shall transfer from the
Personal Property Tax Replacement Fund to the Income Tax
Refund Fund an amount, certified by the Director to the
Comptroller, equal to the excess of the amount of refunds
resulting from overpayment of tax liability under
subsections (c) and (d) of Section 201 of this Act paid
from the Income Tax Refund Fund during the fiscal year over
the amount collected pursuant to subsections (c) and (d) of

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Section 201 of this Act deposited into the Income Tax
Refund Fund during the fiscal year.
(4.5) As soon as possible after the end of fiscal year
1999 and of each fiscal year thereafter, the Director shall
order transferred and the State Treasurer and State
Comptroller shall transfer from the Income Tax Refund Fund
to the General Revenue Fund any surplus remaining in the
Income Tax Refund Fund as of the end of such fiscal year;
excluding for fiscal years 2000, 2001, and 2002 amounts
attributable to transfers under item (3) of subsection (c)
less refunds resulting from the earned income tax credit.
(5) This Act shall constitute an irrevocable and
continuing appropriation from the Income Tax Refund Fund
for the purpose of paying refunds upon the order of the
Director in accordance with the provisions of this Section.
(e) Deposits into the Education Assistance Fund and the
Income Tax Surcharge Local Government Distributive Fund. On
July 1, 1991, and thereafter, of the amounts collected pursuant
to subsections (a) and (b) of Section 201 of this Act, minus
deposits into the Income Tax Refund Fund, the Department shall
deposit 7.3% into the Education Assistance Fund in the State
Treasury. Beginning July 1, 1991, and continuing through
January 31, 1993, of the amounts collected pursuant to
subsections (a) and (b) of Section 201 of the Illinois Income
Tax Act, minus deposits into the Income Tax Refund Fund, the
Department shall deposit 3.0% into the Income Tax Surcharge

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Local Government Distributive Fund in the State Treasury.
Beginning February 1, 1993 and continuing through June 30,
1993, of the amounts collected pursuant to subsections (a) and
(b) of Section 201 of the Illinois Income Tax Act, minus
deposits into the Income Tax Refund Fund, the Department shall
deposit 4.4% into the Income Tax Surcharge Local Government
Distributive Fund in the State Treasury. Beginning July 1,
1993, and continuing through June 30, 1994, of the amounts
collected under subsections (a) and (b) of Section 201 of this
Act, minus deposits into the Income Tax Refund Fund, the
Department shall deposit 1.475% into the Income Tax Surcharge
Local Government Distributive Fund in the State Treasury.
(f) Deposits into the Fund for the Advancement of
Education. Beginning February 1, 2015, the Department shall
deposit the following portions of the revenue realized from the
tax imposed upon individuals, trusts, and estates by
subsections (a) and (b) of Section 201 of this Act during the
preceding month, minus deposits into the Income Tax Refund
Fund, into the Fund for the Advancement of Education:
(1) beginning February 1, 2015, and prior to February
1, 2025, 1/30; and
(2) beginning February 1, 2025, 1/26.
If the rate of tax imposed by subsection (a) and (b) of
Section 201 is reduced pursuant to Section 201.5 of this Act,
the Department shall not make the deposits required by this
subsection (f) on or after the effective date of the reduction.

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(g) Deposits into the Commitment to Human Services Fund.
Beginning February 1, 2015, the Department shall deposit the
following portions of the revenue realized from the tax imposed
upon individuals, trusts, and estates by subsections (a) and
(b) of Section 201 of this Act during the preceding month,
minus deposits into the Income Tax Refund Fund, into the
Commitment to Human Services Fund:
(1) beginning February 1, 2015, and prior to February
1, 2025, 1/30; and
(2) beginning February 1, 2025, 1/26.
If the rate of tax imposed by subsection (a) and (b) of
Section 201 is reduced pursuant to Section 201.5 of this Act,
the Department shall not make the deposits required by this
subsection (g) on or after the effective date of the reduction.
(h) Deposits into the Tax Compliance and Administration
Fund. Beginning on the first day of the first calendar month to
occur on or after August 26, 2014 (the effective date of Public
Act 98-1098), each month the Department shall pay into the Tax
Compliance and Administration Fund, to be used, subject to
appropriation, to fund additional auditors and compliance
personnel at the Department, an amount equal to 1/12 of 5% of
the cash receipts collected during the preceding fiscal year by
the Audit Bureau of the Department from the tax imposed by
subsections (a), (b), (c), and (d) of Section 201 of this Act,
net of deposits into the Income Tax Refund Fund made from those
cash receipts.

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(Source: P.A. 99-78, eff. 7-20-15; 100-22, eff. 7-6-17; 100-23,
eff. 7-6-17; revised 8-3-17.)
Section 30. The Use Tax Act is amended by changing Sections
3-5, 3-5.5, 9, 10 as follows:
(35 ILCS 105/3-5)
Sec. 3-5. Exemptions. Use of the following tangible
personal property is exempt from the tax imposed by this Act:
(1) Personal property purchased from a corporation,
society, association, foundation, institution, or
organization, other than a limited liability company, that is
organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the
personal property was not purchased by the enterprise for the
purpose of resale by the enterprise.
(2) Personal property purchased by a not-for-profit
Illinois county fair association for use in conducting,
operating, or promoting the county fair.
(3) Personal property purchased by a not-for-profit arts or
cultural organization that establishes, by proof required by
the Department by rule, that it has received an exemption under
Section 501(c)(3) of the Internal Revenue Code and that is
organized and operated primarily for the presentation or
support of arts or cultural programming, activities, or
services. These organizations include, but are not limited to,

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music and dramatic arts organizations such as symphony
orchestras and theatrical groups, arts and cultural service
organizations, local arts councils, visual arts organizations,
and media arts organizations. On and after July 1, 2001 (the
effective date of Public Act 92-35) this amendatory Act of the
92nd General Assembly, however, an entity otherwise eligible
for this exemption shall not make tax-free purchases unless it
has an active identification number issued by the Department.
(4) Personal property purchased by a governmental body, by
a corporation, society, association, foundation, or
institution organized and operated exclusively for charitable,
religious, or educational purposes, or by a not-for-profit
corporation, society, association, foundation, institution, or
organization that has no compensated officers or employees and
that is organized and operated primarily for the recreation of
persons 55 years of age or older. A limited liability company
may qualify for the exemption under this paragraph only if the
limited liability company is organized and operated
exclusively for educational purposes. On and after July 1,
1987, however, no entity otherwise eligible for this exemption
shall make tax-free purchases unless it has an active exemption
identification number issued by the Department.
(5) Until July 1, 2003, a passenger car that is a
replacement vehicle to the extent that the purchase price of
the car is subject to the Replacement Vehicle Tax.
(6) Until July 1, 2003 and beginning again on September 1,

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

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

SB3445 - 29 - LRB100 20331 HLH 35618 b
computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not limited
to, the collection, monitoring, and correlation of animal and
crop data for the purpose of formulating animal diets and
agricultural chemicals. This item (11) is exempt from the
provisions of Section 3-90.
(12) Until June 30, 2013, fuel and petroleum products sold
to or used by an air common carrier, certified by the carrier
to be used for consumption, shipment, or storage in the conduct
of its business as an air common carrier, for a flight destined
for or returning from a location or locations outside the
United States without regard to previous or subsequent domestic
stopovers.
Beginning July 1, 2013, fuel and petroleum products sold to
or used by an air carrier, certified by the carrier to be used
for consumption, shipment, or storage in the conduct of its
business as an air common carrier, for a flight that (i) is
engaged in foreign trade or is engaged in trade between the
United States and any of its possessions and (ii) transports at
least one individual or package for hire from the city of
origination to the city of final destination on the same
aircraft, without regard to a change in the flight number of
that aircraft.
(13) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of
food and beverages purchased at retail from a retailer, to the

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extent that the proceeds of the service charge are in fact
turned over as tips or as a substitute for tips to the
employees who participate directly in preparing, serving,
hosting or cleaning up the food or beverage function with
respect to which the service charge is imposed.
(14) Until July 1, 2003, oil field exploration, drilling,
and production equipment, including (i) rigs and parts of rigs,
rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
tubular goods, including casing and drill strings, (iii) pumps
and pump-jack units, (iv) storage tanks and flow lines, (v) any
individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and
equipment purchased for lease; but excluding motor vehicles
required to be registered under the Illinois Vehicle Code.
(15) Photoprocessing machinery and equipment, including
repair and replacement parts, both new and used, including that
manufactured on special order, certified by the purchaser to be
used primarily for photoprocessing, and including
photoprocessing machinery and equipment purchased for lease.
(16) Coal and aggregate exploration, mining, off-highway
hauling, processing, maintenance, and reclamation equipment,
including replacement parts and equipment, and including
equipment purchased for lease, but excluding motor vehicles
required to be registered under the Illinois Vehicle Code. The
changes made to this Section by Public Act 97-767 apply on and
after July 1, 2003, but no claim for credit or refund is

SB3445 - 31 - LRB100 20331 HLH 35618 b
allowed on or after August 16, 2013 (the effective date of
Public Act 98-456) for such taxes paid during the period
beginning July 1, 2003 and ending on August 16, 2013 (the
effective date of Public Act 98-456).
(17) Until July 1, 2003, distillation machinery and
equipment, sold as a unit or kit, assembled or installed by the
retailer, certified by the user to be used only for the
production of ethyl alcohol that will be used for consumption
as motor fuel or as a component of motor fuel for the personal
use of the user, and not subject to sale or resale.
(18) Manufacturing and assembling machinery and equipment
used primarily in the process of manufacturing or assembling
tangible personal property for wholesale or retail sale or
lease, whether that sale or lease is made directly by the
manufacturer or by some other person, whether the materials
used in the process are owned by the manufacturer or some other
person, or whether that sale or lease is made apart from or as
an incident to the seller's engaging in the service occupation
of producing machines, tools, dies, jigs, patterns, gauges, or
other similar items of no commercial value on special order for
a particular purchaser. The exemption provided by this
paragraph (18) does not include machinery and equipment used in
(i) the generation of electricity for wholesale or retail sale;
(ii) the generation or treatment of natural or artificial gas
for wholesale or retail sale that is delivered to customers
through pipes, pipelines, or mains; or (iii) the treatment of

SB3445 - 32 - LRB100 20331 HLH 35618 b
water for wholesale or retail sale that is delivered to
customers through pipes, pipelines, or mains. The provisions of
Public Act 98-583 are declaratory of existing law as to the
meaning and scope of this exemption. Beginning on July 1, 2017,
the exemption provided by this paragraph (18) includes, but is
not limited to, graphic arts machinery and equipment, as
defined in paragraph (6) of this Section.
(19) Personal property delivered to a purchaser or
purchaser's donee inside Illinois when the purchase order for
that personal property was received by a florist located
outside Illinois who has a florist located inside Illinois
deliver the personal property.
(20) Semen used for artificial insemination of livestock
for direct agricultural production.
(21) Horses, or interests in horses, registered with and
meeting the requirements of any of the Arabian Horse Club
Registry of America, Appaloosa Horse Club, American Quarter
Horse Association, United States Trotting Association, or
Jockey Club, as appropriate, used for purposes of breeding or
racing for prizes. This item (21) is exempt from the provisions
of Section 3-90, and the exemption provided for under this item
(21) applies for all periods beginning May 30, 1995, but no
claim for credit or refund is allowed on or after January 1,
2008 for such taxes paid during the period beginning May 30,
2000 and ending on January 1, 2008.
(22) Computers and communications equipment utilized for

SB3445 - 33 - LRB100 20331 HLH 35618 b
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a
lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the time the lessor would
otherwise be subject to the tax imposed by this Act, to a
hospital that has been issued an active tax exemption
identification number by the Department under Section 1g of the
Retailers' Occupation Tax Act. If the equipment is leased in a
manner that does not qualify for this exemption or is used in
any other non-exempt manner, the lessor shall be liable for the
tax imposed under this Act or the Service Use Tax Act, as the
case may be, based on the fair market value of the property at
the time the non-qualifying use occurs. No lessor shall collect
or attempt to collect an amount (however designated) that
purports to reimburse that lessor for the tax imposed by this
Act or the Service Use Tax Act, as the case may be, if the tax
has not been paid by the lessor. If a lessor improperly
collects any such amount from the lessee, the lessee shall have
a legal right to claim a refund of that amount from the lessor.
If, however, that amount is not refunded to the lessee for any
reason, the lessor is liable to pay that amount to the
Department.
(23) Personal property purchased by a lessor who leases the
property, under a lease of one year or longer executed or in
effect at the time the lessor would otherwise be subject to the
tax imposed by this Act, to a governmental body that has been

SB3445 - 34 - LRB100 20331 HLH 35618 b
issued an active sales tax exemption identification number by
the Department under Section 1g of the Retailers' Occupation
Tax Act. If the property is leased in a manner that does not
qualify for this exemption or used in any other non-exempt
manner, the lessor shall be liable for the tax imposed under
this Act or the Service Use Tax Act, as the case may be, based
on the fair market value of the property at the time the
non-qualifying use occurs. No lessor shall collect or attempt
to collect an amount (however designated) that purports to
reimburse that lessor for the tax imposed by this Act or the
Service Use Tax Act, as the case may be, if the tax has not been
paid by the lessor. If a lessor improperly collects any such
amount from the lessee, the lessee shall have a legal right to
claim a refund of that amount from the lessor. If, however,
that amount is not refunded to the lessee for any reason, the
lessor is liable to pay that amount to the Department.
(24) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is donated for
disaster relief to be used in a State or federally declared
disaster area in Illinois or bordering Illinois by a
manufacturer or retailer that is registered in this State to a
corporation, society, association, foundation, or institution
that has been issued a sales tax exemption identification
number by the Department that assists victims of the disaster
who reside within the declared disaster area.

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(25) Beginning with taxable years ending on or after
December 31, 1995 and ending with taxable years ending on or
before December 31, 2004, personal property that is used in the
performance of infrastructure repairs in this State, including
but not limited to municipal roads and streets, access roads,
bridges, sidewalks, waste disposal systems, water and sewer
line extensions, water distribution and purification
facilities, storm water drainage and retention facilities, and
sewage treatment facilities, resulting from a State or
federally declared disaster in Illinois or bordering Illinois
when such repairs are initiated on facilities located in the
declared disaster area within 6 months after the disaster.
(26) Beginning July 1, 1999, game or game birds purchased
at a "game breeding and hunting preserve area" as that term is
used in the Wildlife Code. This paragraph is exempt from the
provisions of Section 3-90.
(27) A motor vehicle, as that term is defined in Section
1-146 of the Illinois Vehicle Code, that is donated to a
corporation, limited liability company, society, association,
foundation, or institution that is determined by the Department
to be organized and operated exclusively for educational
purposes. For purposes of this exemption, "a corporation,
limited liability company, society, association, foundation,
or institution organized and operated exclusively for
educational purposes" means all tax-supported public schools,
private schools that offer systematic instruction in useful

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branches of learning by methods common to public schools and
that compare favorably in their scope and intensity with the
course of study presented in tax-supported schools, and
vocational or technical schools or institutes organized and
operated exclusively to provide a course of study of not less
than 6 weeks duration and designed to prepare individuals to
follow a trade or to pursue a manual, technical, mechanical,
industrial, business, or commercial occupation.
(28) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for the
benefit of a public or private elementary or secondary school,
a group of those schools, or one or more school districts if
the events are sponsored by an entity recognized by the school
district that consists primarily of volunteers and includes
parents and teachers of the school children. This paragraph
does not apply to fundraising events (i) for the benefit of
private home instruction or (ii) for which the fundraising
entity purchases the personal property sold at the events from
another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that profits
from the sale to the fundraising entity. This paragraph is
exempt from the provisions of Section 3-90.
(29) Beginning January 1, 2000 and through December 31,
2001, new or used automatic vending machines that prepare and
serve hot food and beverages, including coffee, soup, and other
items, and replacement parts for these machines. Beginning

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January 1, 2002 and through June 30, 2003, machines and parts
for machines used in commercial, coin-operated amusement and
vending business if a use or occupation tax is paid on the
gross receipts derived from the use of the commercial,
coin-operated amusement and vending machines. This paragraph
is exempt from the provisions of Section 3-90.
(30) Beginning January 1, 2001 and through June 30, 2016,
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages, soft
drinks, and food that has been prepared for immediate
consumption) and prescription and nonprescription medicines,
drugs, medical appliances, and insulin, urine testing
materials, syringes, and needles used by diabetics, for human
use, when purchased for use by a person receiving medical
assistance under Article V of the Illinois Public Aid Code who
resides in a licensed long-term care facility, as defined in
the Nursing Home Care Act, or in a licensed facility as defined
in the ID/DD Community Care Act, the MC/DD Act, or the
Specialized Mental Health Rehabilitation Act of 2013.
(31) Beginning on August 2, 2001 (the effective date of
Public Act 92-227) this amendatory Act of the 92nd General
Assembly, computers and communications equipment utilized for
any hospital purpose and equipment used in the diagnosis,
analysis, or treatment of hospital patients purchased by a
lessor who leases the equipment, under a lease of one year or
longer executed or in effect at the time the lessor would

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

SB3445 - 39 - LRB100 20331 HLH 35618 b
by the Department under Section 1g of the Retailers' Occupation
Tax Act. If the property is leased in a manner that does not
qualify for this exemption or used in any other nonexempt
manner, the lessor shall be liable for the tax imposed under
this Act or the Service Use Tax Act, as the case may be, based
on the fair market value of the property at the time the
nonqualifying use occurs. No lessor shall collect or attempt to
collect an amount (however designated) that purports to
reimburse that lessor for the tax imposed by this Act or the
Service Use Tax Act, as the case may be, if the tax has not been
paid by the lessor. If a lessor improperly collects any such
amount from the lessee, the lessee shall have a legal right to
claim a refund of that amount from the lessor. If, however,
that amount is not refunded to the lessee for any reason, the
lessor is liable to pay that amount to the Department. This
paragraph is exempt from the provisions of Section 3-90.
(33) On and after July 1, 2003 and through June 30, 2004,
the use in this State of motor vehicles of the second division
with a gross vehicle weight in excess of 8,000 pounds and that
are subject to the commercial distribution fee imposed under
Section 3-815.1 of the Illinois Vehicle Code. Beginning on July
1, 2004 and through June 30, 2005, the use in this State of
motor vehicles of the second division: (i) with a gross vehicle
weight rating in excess of 8,000 pounds; (ii) that are subject
to the commercial distribution fee imposed under Section
3-815.1 of the Illinois Vehicle Code; and (iii) that are

SB3445 - 40 - LRB100 20331 HLH 35618 b
primarily used for commercial purposes. Through June 30, 2005,
this exemption applies to repair and replacement parts added
after the initial purchase of such a motor vehicle if that
motor vehicle is used in a manner that would qualify for the
rolling stock exemption otherwise provided for in this Act. For
purposes of this paragraph, the term "used for commercial
purposes" means the transportation of persons or property in
furtherance of any commercial or industrial enterprise,
whether for-hire or not.
(34) Beginning January 1, 2008, tangible personal property
used in the construction or maintenance of a community water
supply, as defined under Section 3.145 of the Environmental
Protection Act, that is operated by a not-for-profit
corporation that holds a valid water supply permit issued under
Title IV of the Environmental Protection Act. This paragraph is
exempt from the provisions of Section 3-90.
(35) Beginning January 1, 2010, materials, parts,
equipment, components, and furnishings incorporated into or
upon an aircraft as part of the modification, refurbishment,
completion, replacement, repair, or maintenance of the
aircraft. This exemption includes consumable supplies used in
the modification, refurbishment, completion, replacement,
repair, and maintenance of aircraft, but excludes any
materials, parts, equipment, components, and consumable
supplies used in the modification, replacement, repair, and
maintenance of aircraft engines or power plants, whether such

SB3445 - 41 - LRB100 20331 HLH 35618 b
engines or power plants are installed or uninstalled upon any
such aircraft. "Consumable supplies" include, but are not
limited to, adhesive, tape, sandpaper, general purpose
lubricants, cleaning solution, latex gloves, and protective
films. This exemption applies only to the use of qualifying
tangible personal property by persons who modify, refurbish,
complete, repair, replace, or maintain aircraft and who (i)
hold an Air Agency Certificate and are empowered to operate an
approved repair station by the Federal Aviation
Administration, (ii) have a Class IV Rating, and (iii) conduct
operations in accordance with Part 145 of the Federal Aviation
Regulations. The exemption does not include aircraft operated
by a commercial air carrier providing scheduled passenger air
service pursuant to authority issued under Part 121 or Part 129
of the Federal Aviation Regulations. The changes made to this
paragraph (35) by Public Act 98-534 are declarative of existing
law.
(36) Tangible personal property purchased by a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall, but
only if the legal title to the municipal convention hall is
transferred to the municipality without any further
consideration by or on behalf of the municipality at the time
of the completion of the municipal convention hall or upon the
retirement or redemption of any bonds or other debt instruments

SB3445 - 42 - LRB100 20331 HLH 35618 b
issued by the public-facilities corporation in connection with
the development of the municipal convention hall. This
exemption includes existing public-facilities corporations as
provided in Section 11-65-25 of the Illinois Municipal Code.
This paragraph is exempt from the provisions of Section 3-90.
(37) Beginning January 1, 2017, menstrual pads, tampons,
and menstrual cups.
(38) Merchandise that is subject to the Rental Purchase
Agreement Occupation and Use Tax. The purchaser must certify
that the item is purchased to be rented subject to a rental
purchase agreement, as defined in the Rental Purchase Agreement
Act, and provide proof of registration under the Rental
Purchase Agreement Occupation and Use Tax Act. This paragraph
is exempt from the provisions of Section 3-90.
(39) Tangible personal property purchased by a purchaser
who is exempt from the tax imposed by this Act by operation of
federal law. This paragraph is exempt from the provisions of
Section 3-90.
(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
100-22, eff. 7-6-17; 100-437, eff. 1-1-18; revised 9-27-17.)
(35 ILCS 105/3-5.5)
Sec. 3-5.5. Food and drugs sold by not-for-profit
organizations; exemption. The Department shall not collect the
1% tax imposed under this Act on food for human consumption
that is to be consumed off the premises where it is sold (other

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than alcoholic beverages, soft drinks, and food that has been
prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances, and
insulin, urine testing materials, syringes, and needles used by
diabetics, for human use from any not-for-profit organization,
that sells food in a food distribution program at a price below
the retail cost of the food to purchasers who, as a condition
of participation in the program, are required to perform
community service, located in a county or municipality that
notifies the Department, in writing, that the county or
municipality does not want the tax to be collected from any of
such organizations located in the county or municipality.
(Source: P.A. 88-374.)
(35 ILCS 105/9) (from Ch. 120, par. 439.9)
(Text of Section before amendment by P.A. 100-363)
Sec. 9. Except as to motor vehicles, watercraft, aircraft,
and trailers that are required to be registered with an agency
of this State, each retailer required or authorized to collect
the tax imposed by this Act shall pay to the Department the
amount of such tax (except as otherwise provided) at the time
when he is required to file his return for the period during
which such tax was collected, less a discount of 2.1% prior to
January 1, 1990, and 1.75% on and after January 1, 1990, or $5
per calendar year, whichever is greater, which is allowed to
reimburse the retailer for expenses incurred in collecting the

SB3445 - 44 - LRB100 20331 HLH 35618 b
tax, keeping records, preparing and filing returns, remitting
the tax and supplying data to the Department on request. In the
case of retailers who report and pay the tax on a transaction
by transaction basis, as provided in this Section, such
discount shall be taken with each such tax remittance instead
of when such retailer files his periodic return. The discount
allowed under this Section is allowed only for returns that are
filed in the manner required by this Act. The Department may
disallow the discount for retailers whose certificate of
registration is revoked at the time the return is filed, but
only if the Department's decision to revoke the certificate of
registration has become final. A retailer need not remit that
part of any tax collected by him to the extent that he is
required to remit and does remit the tax imposed by the
Retailers' Occupation Tax Act, with respect to the sale of the
same property.
Where such tangible personal property is sold under a
conditional sales contract, or under any other form of sale
wherein the payment of the principal sum, or a part thereof, is
extended beyond the close of the period for which the return is
filed, the retailer, in collecting the tax (except as to motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State), may collect for
each tax return period, only the tax applicable to that part of
the selling price actually received during such tax return
period.

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Except as provided in this Section, on or before the
twentieth day of each calendar month, such retailer shall file
a return for the preceding calendar month. Such return shall be
filed on forms prescribed by the Department and shall furnish
such information as the Department may reasonably require. On
and after January 1, 2018, except for returns for motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State, with respect to
retailers whose annual gross receipts average $20,000 or more,
all returns required to be filed pursuant to this Act shall be
filed electronically. Retailers who demonstrate that they do
not have access to the Internet or demonstrate hardship in
filing electronically may petition the Department to waive the
electronic filing requirement.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in the business of selling tangible
personal property at retail in this State;
3. The total amount of taxable receipts received by him

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during the preceding calendar month from sales of tangible
personal property by him during such preceding calendar
month, including receipts from charge and time sales, but
less all deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the Department
may require.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1995, a taxpayer who has
an average monthly tax liability of $50,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all
payments required by rules of the Department by electronic

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funds transfer. The term "annual tax liability" shall be the
sum of the taxpayer's liabilities under this Act, and under all
other State and local occupation and use tax laws administered
by the Department, for the immediately preceding calendar year.
The term "average monthly tax liability" means the sum of the
taxpayer's liabilities under this Act, and under all other
State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12. Beginning on October 1, 2002, a taxpayer who has
a tax liability in the amount set forth in subsection (b) of
Section 2505-210 of the Department of Revenue Law shall make
all payments required by rules of the Department by electronic
funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make payments
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those payments
in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to

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effectuate a program of electronic funds transfer and the
requirements of this Section.
Before October 1, 2000, if the taxpayer's average monthly
tax liability to the Department under this Act, the Retailers'
Occupation Tax Act, the Service Occupation Tax Act, the Service
Use Tax Act was $10,000 or more during the preceding 4 complete
calendar quarters, he shall file a return with the Department
each month by the 20th day of the month next following the
month during which such tax liability is incurred and shall
make payments to the Department on or before the 7th, 15th,
22nd and last day of the month during which such liability is
incurred. On and after October 1, 2000, if the taxpayer's
average monthly tax liability to the Department under this Act,
the Retailers' Occupation Tax Act, the Service Occupation Tax
Act, and the Service Use Tax Act was $20,000 or more during the
preceding 4 complete calendar quarters, he shall file a return
with the Department each month by the 20th day of the month
next following the month during which such tax liability is
incurred and shall make payment to the Department on or before
the 7th, 15th, 22nd and last day of the month during which such
liability is incurred. If the month during which such tax
liability is incurred began prior to January 1, 1985, each
payment shall be in an amount equal to 1/4 of the taxpayer's
actual liability for the month or an amount set by the
Department not to exceed 1/4 of the average monthly liability
of the taxpayer to the Department for the preceding 4 complete

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calendar quarters (excluding the month of highest liability and
the month of lowest liability in such 4 quarter period). If the
month during which such tax liability is incurred begins on or
after January 1, 1985, and prior to January 1, 1987, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 27.5% of the taxpayer's
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1987, and prior to January 1, 1988, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 26.25% of the taxpayer's
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1988, and prior to January 1, 1989, or
begins on or after January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year. If the month during which
such tax liability is incurred begins on or after January 1,
1989, and prior to January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year or 100% of the taxpayer's
actual liability for the quarter monthly reporting period. The
amount of such quarter monthly payments shall be credited
against the final tax liability of the taxpayer's return for

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that month. Before October 1, 2000, once applicable, the
requirement of the making of quarter monthly payments to the
Department shall continue until such taxpayer's average
monthly liability to the Department during the preceding 4
complete calendar quarters (excluding the month of highest
liability and the month of lowest liability) is less than
$9,000, or until such taxpayer's average monthly liability to
the Department as computed for each calendar quarter of the 4
preceding complete calendar quarter period is less than
$10,000. However, if a taxpayer can show the Department that a
substantial change in the taxpayer's business has occurred
which causes the taxpayer to anticipate that his average
monthly tax liability for the reasonably foreseeable future
will fall below the $10,000 threshold stated above, then such
taxpayer may petition the Department for change in such
taxpayer's reporting status. On and after October 1, 2000, once
applicable, the requirement of the making of quarter monthly
payments to the Department shall continue until such taxpayer's
average monthly liability to the Department during the
preceding 4 complete calendar quarters (excluding the month of
highest liability and the month of lowest liability) is less
than $19,000 or until such taxpayer's average monthly liability
to the Department as computed for each calendar quarter of the
4 preceding complete calendar quarter period is less than
$20,000. However, if a taxpayer can show the Department that a
substantial change in the taxpayer's business has occurred

SB3445 - 51 - LRB100 20331 HLH 35618 b
which causes the taxpayer to anticipate that his average
monthly tax liability for the reasonably foreseeable future
will fall below the $20,000 threshold stated above, then such
taxpayer may petition the Department for a change in such
taxpayer's reporting status. The Department shall change such
taxpayer's reporting status unless it finds that such change is
seasonal in nature and not likely to be long term. If any such
quarter monthly payment is not paid at the time or in the
amount required by this Section, then the taxpayer shall be
liable for penalties and interest on the difference between the
minimum amount due and the amount of such quarter monthly
payment actually and timely paid, except insofar as the
taxpayer has previously made payments for that month to the
Department in excess of the minimum payments previously due as
provided in this Section. The Department shall make reasonable
rules and regulations to govern the quarter monthly payment
amount and quarter monthly payment dates for taxpayers who file
on other than a calendar monthly basis.
If any such payment provided for in this Section exceeds
the taxpayer's liabilities under this Act, the Retailers'
Occupation Tax Act, the Service Occupation Tax Act and the
Service Use Tax Act, as shown by an original monthly return,
the Department shall issue to the taxpayer a credit memorandum
no later than 30 days after the date of payment, which
memorandum may be submitted by the taxpayer to the Department
in payment of tax liability subsequently to be remitted by the

SB3445 - 52 - LRB100 20331 HLH 35618 b
taxpayer to the Department or be assigned by the taxpayer to a
similar taxpayer under this Act, the Retailers' Occupation Tax
Act, the Service Occupation Tax Act or the Service Use Tax Act,
in accordance with reasonable rules and regulations to be
prescribed by the Department, except that if such excess
payment is shown on an original monthly return and is made
after December 31, 1986, no credit memorandum shall be issued,
unless requested by the taxpayer. If no such request is made,
the taxpayer may credit such excess payment against tax
liability subsequently to be remitted by the taxpayer to the
Department under this Act, the Retailers' Occupation Tax Act,
the Service Occupation Tax Act or the Service Use Tax Act, in
accordance with reasonable rules and regulations prescribed by
the Department. If the Department subsequently determines that
all or any part of the credit taken was not actually due to the
taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
be reduced by 2.1% or 1.75% of the difference between the
credit taken and that actually due, and the taxpayer shall be
liable for penalties and interest on such difference.
If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February, and March of a given
year being due by April 20 of such year; with the return for
April, May and June of a given year being due by July 20 of such

SB3445 - 53 - LRB100 20331 HLH 35618 b
year; with the return for July, August and September of a given
year being due by October 20 of such year, and with the return
for October, November and December of a given year being due by
January 20 of the following year.
If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
liability to the Department does not exceed $50, the Department
may authorize his returns to be filed on an annual basis, with
the return for a given year being due by January 20 of the
following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
Notwithstanding any other provision in this Act concerning
the time within which a retailer may file his return, in the
case of any retailer who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such retailer shall file a final return under this Act with the
Department not more than one month after discontinuing such
business.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, except as otherwise provided in this
Section, every retailer selling this kind of tangible personal
property shall file, with the Department, upon a form to be
prescribed and supplied by the Department, a separate return

SB3445 - 54 - LRB100 20331 HLH 35618 b
for each such item of tangible personal property which the
retailer sells, except that if, in the same transaction, (i) a
retailer of aircraft, watercraft, motor vehicles or trailers
transfers more than one aircraft, watercraft, motor vehicle or
trailer to another aircraft, watercraft, motor vehicle or
trailer retailer for the purpose of resale or (ii) a retailer
of aircraft, watercraft, motor vehicles, or trailers transfers
more than one aircraft, watercraft, motor vehicle, or trailer
to a purchaser for use as a qualifying rolling stock as
provided in Section 3-55 of this Act, then that seller may
report the transfer of all the aircraft, watercraft, motor
vehicles or trailers involved in that transaction to the
Department on the same uniform invoice-transaction reporting
return form. For purposes of this Section, "watercraft" means a
Class 2, Class 3, or Class 4 watercraft as defined in Section
3-2 of the Boat Registration and Safety Act, a personal
watercraft, or any boat equipped with an inboard motor.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, every person who is engaged in the
business of leasing or renting such items and who, in
connection with such business, sells any such item to a
retailer for the purpose of resale is, notwithstanding any
other provision of this Section to the contrary, authorized to
meet the return-filing requirement of this Act by reporting the
transfer of all the aircraft, watercraft, motor vehicles, or

SB3445 - 55 - LRB100 20331 HLH 35618 b
trailers transferred for resale during a month to the
Department on the same uniform invoice-transaction reporting
return form on or before the 20th of the month following the
month in which the transfer takes place. Notwithstanding any
other provision of this Act to the contrary, all returns filed
under this paragraph must be filed by electronic means in the
manner and form as required by the Department.
The transaction reporting return in the case of motor
vehicles or trailers that are required to be registered with an
agency of this State, shall be the same document as the Uniform
Invoice referred to in Section 5-402 of the Illinois Vehicle
Code and must show the name and address of the seller; the name
and address of the purchaser; the amount of the selling price
including the amount allowed by the retailer for traded-in
property, if any; the amount allowed by the retailer for the
traded-in tangible personal property, if any, to the extent to
which Section 2 of this Act allows an exemption for the value
of traded-in property; the balance payable after deducting such
trade-in allowance from the total selling price; the amount of
tax due from the retailer with respect to such transaction; the
amount of tax collected from the purchaser by the retailer on
such transaction (or satisfactory evidence that such tax is not
due in that particular instance, if that is claimed to be the
fact); the place and date of the sale; a sufficient
identification of the property sold; such other information as
is required in Section 5-402 of the Illinois Vehicle Code, and

SB3445 - 56 - LRB100 20331 HLH 35618 b
such other information as the Department may reasonably
require.
The transaction reporting return in the case of watercraft
and aircraft must show the name and address of the seller; the
name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 2 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling price;
the amount of tax due from the retailer with respect to such
transaction; the amount of tax collected from the purchaser by
the retailer on such transaction (or satisfactory evidence that
such tax is not due in that particular instance, if that is
claimed to be the fact); the place and date of the sale, a
sufficient identification of the property sold, and such other
information as the Department may reasonably require.
Such transaction reporting return shall be filed not later
than 20 days after the date of delivery of the item that is
being sold, but may be filed by the retailer at any time sooner
than that if he chooses to do so. The transaction reporting
return and tax remittance or proof of exemption from the tax
that is imposed by this Act may be transmitted to the
Department by way of the State agency with which, or State
officer with whom, the tangible personal property must be

SB3445 - 57 - LRB100 20331 HLH 35618 b
titled or registered (if titling or registration is required)
if the Department and such agency or State officer determine
that this procedure will expedite the processing of
applications for title or registration.
With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the
Department shall issue, in the purchaser's name, a tax receipt
(or a certificate of exemption if the Department is satisfied
that the particular sale is tax exempt) which such purchaser
may submit to the agency with which, or State officer with
whom, he must title or register the tangible personal property
that is involved (if titling or registration is required) in
support of such purchaser's application for an Illinois
certificate or other evidence of title or registration to such
tangible personal property.
No retailer's failure or refusal to remit tax under this
Act precludes a user, who has paid the proper tax to the
retailer, from obtaining his certificate of title or other
evidence of title or registration (if titling or registration
is required) upon satisfying the Department that such user has
paid the proper tax (if tax is due) to the retailer. The
Department shall adopt appropriate rules to carry out the
mandate of this paragraph.
If the user who would otherwise pay tax to the retailer

SB3445 - 58 - LRB100 20331 HLH 35618 b
wants the transaction reporting return filed and the payment of
tax or proof of exemption made to the Department before the
retailer is willing to take these actions and such user has not
paid the tax to the retailer, such user may certify to the fact
of such delay by the retailer, and may (upon the Department
being satisfied of the truth of such certification) transmit
the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to
the Department and obtain his tax receipt or exemption
determination, in which event the transaction reporting return
and tax remittance (if a tax payment was required) shall be
credited by the Department to the proper retailer's account
with the Department, but without the 2.1% or 1.75% discount
provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the
same amount and in the same form in which it would be remitted
if the tax had been remitted to the Department by the retailer.
Where a retailer collects the tax with respect to the
selling price of tangible personal property which he sells and
the purchaser thereafter returns such tangible personal
property and the retailer refunds the selling price thereof to
the purchaser, such retailer shall also refund, to the
purchaser, the tax so collected from the purchaser. When filing
his return for the period in which he refunds such tax to the
purchaser, the retailer may deduct the amount of the tax so
refunded by him to the purchaser from any other use tax which

SB3445 - 59 - LRB100 20331 HLH 35618 b
such retailer may be required to pay or remit to the
Department, as shown by such return, if the amount of the tax
to be deducted was previously remitted to the Department by
such retailer. If the retailer has not previously remitted the
amount of such tax to the Department, he is entitled to no
deduction under this Act upon refunding such tax to the
purchaser.
Any retailer filing a return under this Section shall also
include (for the purpose of paying tax thereon) the total tax
covered by such return upon the selling price of tangible
personal property purchased by him at retail from a retailer,
but as to which the tax imposed by this Act was not collected
from the retailer filing such return, and such retailer shall
remit the amount of such tax to the Department when filing such
return.
If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable retailers, who are required to file
returns hereunder and also under the Retailers' Occupation Tax
Act, to furnish all the return information required by both
Acts on the one form.
Where the retailer has more than one business registered
with the Department under separate registration under this Act,
such retailer may not file each return that is due as a single
return covering all such registered businesses, but shall file
separate returns for each such registered business.

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Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund, a special
fund in the State Treasury which is hereby created, the net
revenue realized for the preceding month from the 1% tax
imposed under this Act on sales of food for human consumption
which is to be consumed off the premises where it is sold
(other than alcoholic beverages, soft drinks and food which has
been prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances, products
classified as Class III medical devices by the United States
Food and Drug Administration that are used for cancer treatment
pursuant to a prescription, as well as any accessories and
components related to those devices, and insulin, urine testing
materials, syringes and needles used by diabetics.
Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund 4% of the
net revenue realized for the preceding month from the 6.25%
general rate on the selling price of tangible personal property
which is purchased outside Illinois at retail from a retailer
and which is titled or registered by an agency of this State's
government.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund, a special
fund in the State Treasury, 20% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property, other than tangible

SB3445 - 61 - LRB100 20331 HLH 35618 b
personal property which is purchased outside Illinois at retail
from a retailer and which is titled or registered by an agency
of this State's government.
Beginning August 1, 2000, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 100% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol. Beginning
September 1, 2010, each month the Department shall pay into the
State and Local Sales Tax Reform Fund 100% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of sales tax holiday items.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the net revenue
realized for the preceding month from the 6.25% general rate on
the selling price of tangible personal property which is
purchased outside Illinois at retail from a retailer and which
is titled or registered by an agency of this State's
government.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2011, each month the Department shall pay

SB3445 - 62 - LRB100 20331 HLH 35618 b
into the Clean Air Act Permit Fund 80% of the net revenue
realized for the preceding month from the 6.25% general rate on
the selling price of sorbents used in Illinois in the process
of sorbent injection as used to comply with the Environmental
Protection Act or the federal Clean Air Act, but the total
payment into the Clean Air Act Permit Fund under this Act and
the Retailers' Occupation Tax Act shall not exceed $2,000,000
in any fiscal year.
Beginning July 1, 2013, each month the Department shall pay
into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Service Use Tax Act, the Service
Occupation Tax Act, and the Retailers' Occupation Tax Act an
amount equal to the average monthly deficit in the Underground
Storage Tank Fund during the prior year, as certified annually
by the Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Service Use Tax Act, the Service Occupation Tax Act, and
the Retailers' Occupation Tax Act shall not exceed $18,000,000
in any State fiscal year. As used in this paragraph, the
"average monthly deficit" shall be equal to the difference
between the average monthly claims for payment by the fund and
the average monthly revenues deposited into the fund, excluding
payments made pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under this Act, the Service Use Tax
Act, the Service Occupation Tax Act, and the Retailers'

SB3445 - 63 - LRB100 20331 HLH 35618 b
Occupation Tax Act, each month the Department shall deposit
$500,000 into the State Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Bond Account
in the Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from

SB3445 - 64 - LRB100 20331 HLH 35618 b
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture securing
Bonds issued and outstanding pursuant to the Build Illinois
Bond Act is sufficient, taking into account any future
investment income, to fully provide, in accordance with such
indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited in the Build Illinois Bond
Account in the Build Illinois Fund in such month shall be less

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than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois Fund;
provided, however, that any amounts paid to the Build Illinois
Fund in any fiscal year pursuant to this sentence shall be
deemed to constitute payments pursuant to clause (b) of the
preceding sentence and shall reduce the amount otherwise
payable for such fiscal year pursuant to clause (b) of the
preceding sentence. The moneys received by the Department
pursuant to this Act and required to be deposited into the
Build Illinois Fund are subject to the pledge, claim and charge
set forth in Section 12 of the Build Illinois Bond Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place

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Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000

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2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 246,000,000
2022 260,000,000
2023 275,000,000
2024 275,000,000
2025 275,000,000
2026 279,000,000
2027 292,000,000
2028 307,000,000
2029 322,000,000
2030 338,000,000
2031 350,000,000
2032 350,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the

SB3445 - 68 - LRB100 20331 HLH 35618 b
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total Deposit",
has been deposited.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois Tax
Increment Fund 0.27% of 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy
Infrastructure Fund 80% of the net revenue realized from the

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6.25% general rate on the selling price of Illinois-mined coal
that was sold to an eligible business. For purposes of this
paragraph, the term "eligible business" means a new electric
generating facility certified pursuant to Section 605-332 of
the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
Subject to payment of amounts into the Build Illinois Fund,
the McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, and the Energy Infrastructure Fund pursuant to
the preceding paragraphs or in any amendments to this Section
hereafter enacted, beginning on the first day of the first
calendar month to occur on or after August 26, 2014 (the
effective date of Public Act 98-1098), each month, from the
collections made under Section 9 of the Use Tax Act, Section 9
of the Service Use Tax Act, Section 9 of the Service Occupation
Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
the Department shall pay into the Tax Compliance and
Administration Fund, to be used, subject to appropriation, to
fund additional auditors and compliance personnel at the
Department of Revenue, an amount equal to 1/12 of 5% of 80% of
the cash receipts collected during the preceding fiscal year by
the Audit Bureau of the Department under the Use Tax Act, the
Service Use Tax Act, the Service Occupation Tax Act, the
Retailers' Occupation Tax Act, and associated local occupation
and use taxes administered by the Department.
Of the remainder of the moneys received by the Department

SB3445 - 70 - LRB100 20331 HLH 35618 b
pursuant to this Act, 75% thereof shall be paid into the State
Treasury and 25% shall be reserved in a special account and
used only for the transfer to the Common School Fund as part of
the monthly transfer from the General Revenue Fund in
accordance with Section 8a of the State Finance Act.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to such
sales, if the retailers who are affected do not make written
objection to the Department to this arrangement.
(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
99-933, eff. 1-27-17; 100-303, eff. 8-24-17.)

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(Text of Section after amendment by P.A. 100-363)
Sec. 9. Except as to motor vehicles, watercraft, aircraft,
and trailers that are required to be registered with an agency
of this State, each retailer required or authorized to collect
the tax imposed by this Act shall pay to the Department the
amount of such tax (except as otherwise provided) at the time
when he is required to file his return for the period during
which such tax was collected, less a discount of 2.1% prior to
January 1, 1990, and 1.75% on and after January 1, 1990, or $5
per calendar year, whichever is greater, which is allowed to
reimburse the retailer for expenses incurred in collecting the
tax, keeping records, preparing and filing returns, remitting
the tax and supplying data to the Department on request. In the
case of retailers who report and pay the tax on a transaction
by transaction basis, as provided in this Section, such
discount shall be taken with each such tax remittance instead
of when such retailer files his periodic return. The discount
allowed under this Section is allowed only for returns that are
filed in the manner required by this Act. The Department may
disallow the discount for retailers whose certificate of
registration is revoked at the time the return is filed, but
only if the Department's decision to revoke the certificate of
registration has become final. A retailer need not remit that
part of any tax collected by him to the extent that he is
required to remit and does remit the tax imposed by the
Retailers' Occupation Tax Act, with respect to the sale of the

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same property.
Where such tangible personal property is sold under a
conditional sales contract, or under any other form of sale
wherein the payment of the principal sum, or a part thereof, is
extended beyond the close of the period for which the return is
filed, the retailer, in collecting the tax (except as to motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State), may collect for
each tax return period, only the tax applicable to that part of
the selling price actually received during such tax return
period.
Except as provided in this Section, on or before the
twentieth day of each calendar month, such retailer shall file
a return for the preceding calendar month. Such return shall be
filed on forms prescribed by the Department and shall furnish
such information as the Department may reasonably require. On
and after January 1, 2018, except for returns for motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State, with respect to
retailers whose annual gross receipts average $20,000 or more,
all returns required to be filed pursuant to this Act shall be
filed electronically. Retailers who demonstrate that they do
not have access to the Internet or demonstrate hardship in
filing electronically may petition the Department to waive the
electronic filing requirement.
The Department may require returns to be filed on a

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quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in the business of selling tangible
personal property at retail in this State;
3. The total amount of taxable receipts received by him
during the preceding calendar month from sales of tangible
personal property by him during such preceding calendar
month, including receipts from charge and time sales, but
less all deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the Department
may require.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Beginning October 1, 1993, a taxpayer who has an average

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monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1995, a taxpayer who has
an average monthly tax liability of $50,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. The term "annual tax liability" shall be the
sum of the taxpayer's liabilities under this Act, and under all
other State and local occupation and use tax laws administered
by the Department, for the immediately preceding calendar year.
The term "average monthly tax liability" means the sum of the
taxpayer's liabilities under this Act, and under all other
State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12. Beginning on October 1, 2002, a taxpayer who has
a tax liability in the amount set forth in subsection (b) of
Section 2505-210 of the Department of Revenue Law shall make
all payments required by rules of the Department by electronic
funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make payments

SB3445 - 75 - LRB100 20331 HLH 35618 b
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those payments
in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
Before October 1, 2000, if the taxpayer's average monthly
tax liability to the Department under this Act, the Retailers'
Occupation Tax Act, the Service Occupation Tax Act, the Service
Use Tax Act was $10,000 or more during the preceding 4 complete
calendar quarters, he shall file a return with the Department
each month by the 20th day of the month next following the
month during which such tax liability is incurred and shall
make payments to the Department on or before the 7th, 15th,
22nd and last day of the month during which such liability is
incurred. On and after October 1, 2000, if the taxpayer's
average monthly tax liability to the Department under this Act,
the Retailers' Occupation Tax Act, the Service Occupation Tax
Act, and the Service Use Tax Act was $20,000 or more during the

SB3445 - 76 - LRB100 20331 HLH 35618 b
preceding 4 complete calendar quarters, he shall file a return
with the Department each month by the 20th day of the month
next following the month during which such tax liability is
incurred and shall make payment to the Department on or before
the 7th, 15th, 22nd and last day of the month during which such
liability is incurred. If the month during which such tax
liability is incurred began prior to January 1, 1985, each
payment shall be in an amount equal to 1/4 of the taxpayer's
actual liability for the month or an amount set by the
Department not to exceed 1/4 of the average monthly liability
of the taxpayer to the Department for the preceding 4 complete
calendar quarters (excluding the month of highest liability and
the month of lowest liability in such 4 quarter period). If the
month during which such tax liability is incurred begins on or
after January 1, 1985, and prior to January 1, 1987, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 27.5% of the taxpayer's
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1987, and prior to January 1, 1988, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 26.25% of the taxpayer's
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1988, and prior to January 1, 1989, or
begins on or after January 1, 1996, each payment shall be in an

SB3445 - 77 - LRB100 20331 HLH 35618 b
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year. If the month during which
such tax liability is incurred begins on or after January 1,
1989, and prior to January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year or 100% of the taxpayer's
actual liability for the quarter monthly reporting period. The
amount of such quarter monthly payments shall be credited
against the final tax liability of the taxpayer's return for
that month. Before October 1, 2000, once applicable, the
requirement of the making of quarter monthly payments to the
Department shall continue until such taxpayer's average
monthly liability to the Department during the preceding 4
complete calendar quarters (excluding the month of highest
liability and the month of lowest liability) is less than
$9,000, or until such taxpayer's average monthly liability to
the Department as computed for each calendar quarter of the 4
preceding complete calendar quarter period is less than
$10,000. However, if a taxpayer can show the Department that a
substantial change in the taxpayer's business has occurred
which causes the taxpayer to anticipate that his average
monthly tax liability for the reasonably foreseeable future
will fall below the $10,000 threshold stated above, then such
taxpayer may petition the Department for change in such

SB3445 - 78 - LRB100 20331 HLH 35618 b
taxpayer's reporting status. On and after October 1, 2000, once
applicable, the requirement of the making of quarter monthly
payments to the Department shall continue until such taxpayer's
average monthly liability to the Department during the
preceding 4 complete calendar quarters (excluding the month of
highest liability and the month of lowest liability) is less
than $19,000 or until such taxpayer's average monthly liability
to the Department as computed for each calendar quarter of the
4 preceding complete calendar quarter period is less than
$20,000. However, if a taxpayer can show the Department that a
substantial change in the taxpayer's business has occurred
which causes the taxpayer to anticipate that his average
monthly tax liability for the reasonably foreseeable future
will fall below the $20,000 threshold stated above, then such
taxpayer may petition the Department for a change in such
taxpayer's reporting status. The Department shall change such
taxpayer's reporting status unless it finds that such change is
seasonal in nature and not likely to be long term. If any such
quarter monthly payment is not paid at the time or in the
amount required by this Section, then the taxpayer shall be
liable for penalties and interest on the difference between the
minimum amount due and the amount of such quarter monthly
payment actually and timely paid, except insofar as the
taxpayer has previously made payments for that month to the
Department in excess of the minimum payments previously due as
provided in this Section. The Department shall make reasonable

SB3445 - 79 - LRB100 20331 HLH 35618 b
rules and regulations to govern the quarter monthly payment
amount and quarter monthly payment dates for taxpayers who file
on other than a calendar monthly basis.
If any such payment provided for in this Section exceeds
the taxpayer's liabilities under this Act, the Retailers'
Occupation Tax Act, the Service Occupation Tax Act and the
Service Use Tax Act, as shown by an original monthly return,
the Department shall issue to the taxpayer a credit memorandum
no later than 30 days after the date of payment, which
memorandum may be submitted by the taxpayer to the Department
in payment of tax liability subsequently to be remitted by the
taxpayer to the Department or be assigned by the taxpayer to a
similar taxpayer under this Act, the Retailers' Occupation Tax
Act, the Service Occupation Tax Act or the Service Use Tax Act,
in accordance with reasonable rules and regulations to be
prescribed by the Department, except that if such excess
payment is shown on an original monthly return and is made
after December 31, 1986, no credit memorandum shall be issued,
unless requested by the taxpayer. If no such request is made,
the taxpayer may credit such excess payment against tax
liability subsequently to be remitted by the taxpayer to the
Department under this Act, the Retailers' Occupation Tax Act,
the Service Occupation Tax Act or the Service Use Tax Act, in
accordance with reasonable rules and regulations prescribed by
the Department. If the Department subsequently determines that
all or any part of the credit taken was not actually due to the

SB3445 - 80 - LRB100 20331 HLH 35618 b
taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall
be reduced by 2.1% or 1.75% of the difference between the
credit taken and that actually due, and the taxpayer shall be
liable for penalties and interest on such difference.
If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February, and March of a given
year being due by April 20 of such year; with the return for
April, May and June of a given year being due by July 20 of such
year; with the return for July, August and September of a given
year being due by October 20 of such year, and with the return
for October, November and December of a given year being due by
January 20 of the following year.
If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
liability to the Department does not exceed $50, the Department
may authorize his returns to be filed on an annual basis, with
the return for a given year being due by January 20 of the
following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
Notwithstanding any other provision in this Act concerning
the time within which a retailer may file his return, in the

SB3445 - 81 - LRB100 20331 HLH 35618 b
case of any retailer who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such retailer shall file a final return under this Act with the
Department not more than one month after discontinuing such
business.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, except as otherwise provided in this
Section, every retailer selling this kind of tangible personal
property shall file, with the Department, upon a form to be
prescribed and supplied by the Department, a separate return
for each such item of tangible personal property which the
retailer sells, except that if, in the same transaction, (i) a
retailer of aircraft, watercraft, motor vehicles or trailers
transfers more than one aircraft, watercraft, motor vehicle or
trailer to another aircraft, watercraft, motor vehicle or
trailer retailer for the purpose of resale or (ii) a retailer
of aircraft, watercraft, motor vehicles, or trailers transfers
more than one aircraft, watercraft, motor vehicle, or trailer
to a purchaser for use as a qualifying rolling stock as
provided in Section 3-55 of this Act, then that seller may
report the transfer of all the aircraft, watercraft, motor
vehicles or trailers involved in that transaction to the
Department on the same uniform invoice-transaction reporting
return form. For purposes of this Section, "watercraft" means a
Class 2, Class 3, or Class 4 watercraft as defined in Section

SB3445 - 82 - LRB100 20331 HLH 35618 b
3-2 of the Boat Registration and Safety Act, a personal
watercraft, or any boat equipped with an inboard motor.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, every person who is engaged in the
business of leasing or renting such items and who, in
connection with such business, sells any such item to a
retailer for the purpose of resale is, notwithstanding any
other provision of this Section to the contrary, authorized to
meet the return-filing requirement of this Act by reporting the
transfer of all the aircraft, watercraft, motor vehicles, or
trailers transferred for resale during a month to the
Department on the same uniform invoice-transaction reporting
return form on or before the 20th of the month following the
month in which the transfer takes place. Notwithstanding any
other provision of this Act to the contrary, all returns filed
under this paragraph must be filed by electronic means in the
manner and form as required by the Department.
The transaction reporting return in the case of motor
vehicles or trailers that are required to be registered with an
agency of this State, shall be the same document as the Uniform
Invoice referred to in Section 5-402 of the Illinois Vehicle
Code and must show the name and address of the seller; the name
and address of the purchaser; the amount of the selling price
including the amount allowed by the retailer for traded-in
property, if any; the amount allowed by the retailer for the

SB3445 - 83 - LRB100 20331 HLH 35618 b
traded-in tangible personal property, if any, to the extent to
which Section 2 of this Act allows an exemption for the value
of traded-in property; the balance payable after deducting such
trade-in allowance from the total selling price; the amount of
tax due from the retailer with respect to such transaction; the
amount of tax collected from the purchaser by the retailer on
such transaction (or satisfactory evidence that such tax is not
due in that particular instance, if that is claimed to be the
fact); the place and date of the sale; a sufficient
identification of the property sold; such other information as
is required in Section 5-402 of the Illinois Vehicle Code, and
such other information as the Department may reasonably
require.
The transaction reporting return in the case of watercraft
and aircraft must show the name and address of the seller; the
name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 2 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling price;
the amount of tax due from the retailer with respect to such
transaction; the amount of tax collected from the purchaser by
the retailer on such transaction (or satisfactory evidence that
such tax is not due in that particular instance, if that is

SB3445 - 84 - LRB100 20331 HLH 35618 b
claimed to be the fact); the place and date of the sale, a
sufficient identification of the property sold, and such other
information as the Department may reasonably require.
Such transaction reporting return shall be filed not later
than 20 days after the date of delivery of the item that is
being sold, but may be filed by the retailer at any time sooner
than that if he chooses to do so. The transaction reporting
return and tax remittance or proof of exemption from the tax
that is imposed by this Act may be transmitted to the
Department by way of the State agency with which, or State
officer with whom, the tangible personal property must be
titled or registered (if titling or registration is required)
if the Department and such agency or State officer determine
that this procedure will expedite the processing of
applications for title or registration.
With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the
Department shall issue, in the purchaser's name, a tax receipt
(or a certificate of exemption if the Department is satisfied
that the particular sale is tax exempt) which such purchaser
may submit to the agency with which, or State officer with
whom, he must title or register the tangible personal property
that is involved (if titling or registration is required) in
support of such purchaser's application for an Illinois

SB3445 - 85 - LRB100 20331 HLH 35618 b
certificate or other evidence of title or registration to such
tangible personal property.
No retailer's failure or refusal to remit tax under this
Act precludes a user, who has paid the proper tax to the
retailer, from obtaining his certificate of title or other
evidence of title or registration (if titling or registration
is required) upon satisfying the Department that such user has
paid the proper tax (if tax is due) to the retailer. The
Department shall adopt appropriate rules to carry out the
mandate of this paragraph.
If the user who would otherwise pay tax to the retailer
wants the transaction reporting return filed and the payment of
tax or proof of exemption made to the Department before the
retailer is willing to take these actions and such user has not
paid the tax to the retailer, such user may certify to the fact
of such delay by the retailer, and may (upon the Department
being satisfied of the truth of such certification) transmit
the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to
the Department and obtain his tax receipt or exemption
determination, in which event the transaction reporting return
and tax remittance (if a tax payment was required) shall be
credited by the Department to the proper retailer's account
with the Department, but without the 2.1% or 1.75% discount
provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the

SB3445 - 86 - LRB100 20331 HLH 35618 b
same amount and in the same form in which it would be remitted
if the tax had been remitted to the Department by the retailer.
Where a retailer collects the tax with respect to the
selling price of tangible personal property which he sells and
the purchaser thereafter returns such tangible personal
property and the retailer refunds the selling price thereof to
the purchaser, such retailer shall also refund, to the
purchaser, the tax so collected from the purchaser. When filing
his return for the period in which he refunds such tax to the
purchaser, the retailer may deduct the amount of the tax so
refunded by him to the purchaser from any other use tax which
such retailer may be required to pay or remit to the
Department, as shown by such return, if the amount of the tax
to be deducted was previously remitted to the Department by
such retailer. If the retailer has not previously remitted the
amount of such tax to the Department, he is entitled to no
deduction under this Act upon refunding such tax to the
purchaser.
Any retailer filing a return under this Section shall also
include (for the purpose of paying tax thereon) the total tax
covered by such return upon the selling price of tangible
personal property purchased by him at retail from a retailer,
but as to which the tax imposed by this Act was not collected
from the retailer filing such return, and such retailer shall
remit the amount of such tax to the Department when filing such
return.

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If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable retailers, who are required to file
returns hereunder and also under the Retailers' Occupation Tax
Act, to furnish all the return information required by both
Acts on the one form.
Where the retailer has more than one business registered
with the Department under separate registration under this Act,
such retailer may not file each return that is due as a single
return covering all such registered businesses, but shall file
separate returns for each such registered business.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund, a special
fund in the State Treasury which is hereby created, the net
revenue realized for the preceding month from the 1% tax
imposed under this Act on sales of food for human consumption
which is to be consumed off the premises where it is sold
(other than alcoholic beverages, soft drinks and food which has
been prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances, products
classified as Class III medical devices by the United States
Food and Drug Administration that are used for cancer treatment
pursuant to a prescription, as well as any accessories and
components related to those devices, and insulin, urine testing
materials, syringes and needles used by diabetics.
Beginning January 1, 1990, each month the Department shall

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pay into the County and Mass Transit District Fund 4% of the
net revenue realized for the preceding month from the 6.25%
general rate on the selling price of tangible personal property
which is purchased outside Illinois at retail from a retailer
and which is titled or registered by an agency of this State's
government.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund, a special
fund in the State Treasury, 20% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property, other than tangible
personal property which is purchased outside Illinois at retail
from a retailer and which is titled or registered by an agency
of this State's government.
Beginning August 1, 2000, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 100% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol. Beginning
September 1, 2010, each month the Department shall pay into the
State and Local Sales Tax Reform Fund 100% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of sales tax holiday items.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the net revenue
realized for the preceding month from the 6.25% general rate on
the selling price of tangible personal property which is

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purchased outside Illinois at retail from a retailer and which
is titled or registered by an agency of this State's
government.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2011, each month the Department shall pay
into the Clean Air Act Permit Fund 80% of the net revenue
realized for the preceding month from the 6.25% general rate on
the selling price of sorbents used in Illinois in the process
of sorbent injection as used to comply with the Environmental
Protection Act or the federal Clean Air Act, but the total
payment into the Clean Air Act Permit Fund under this Act and
the Retailers' Occupation Tax Act shall not exceed $2,000,000
in any fiscal year.
Beginning July 1, 2013, each month the Department shall pay
into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Service Use Tax Act, the Service
Occupation Tax Act, and the Retailers' Occupation Tax Act an
amount equal to the average monthly deficit in the Underground
Storage Tank Fund during the prior year, as certified annually
by the Illinois Environmental Protection Agency, but the total

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payment into the Underground Storage Tank Fund under this Act,
the Service Use Tax Act, the Service Occupation Tax Act, and
the Retailers' Occupation Tax Act shall not exceed $18,000,000
in any State fiscal year. As used in this paragraph, the
"average monthly deficit" shall be equal to the difference
between the average monthly claims for payment by the fund and
the average monthly revenues deposited into the fund, excluding
payments made pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under this Act, the Service Use Tax
Act, the Service Occupation Tax Act, and the Retailers'
Occupation Tax Act, each month the Department shall deposit
$500,000 into the State Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act

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Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Bond Account
in the Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture securing
Bonds issued and outstanding pursuant to the Build Illinois
Bond Act is sufficient, taking into account any future

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investment income, to fully provide, in accordance with such
indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited in the Build Illinois Bond
Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois Fund;
provided, however, that any amounts paid to the Build Illinois
Fund in any fiscal year pursuant to this sentence shall be
deemed to constitute payments pursuant to clause (b) of the
preceding sentence and shall reduce the amount otherwise
payable for such fiscal year pursuant to clause (b) of the
preceding sentence. The moneys received by the Department
pursuant to this Act and required to be deposited into the
Build Illinois Fund are subject to the pledge, claim and charge
set forth in Section 12 of the Build Illinois Bond Act.

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Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000

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2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 246,000,000
2022 260,000,000
2023 275,000,000
2024 275,000,000
2025 275,000,000
2026 279,000,000
2027 292,000,000
2028 307,000,000
2029 322,000,000
2030 338,000,000
2031 350,000,000

SB3445 - 95 - LRB100 20331 HLH 35618 b
2032 350,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total Deposit",
has been deposited.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,

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2013, the Department shall each month pay into the Illinois Tax
Increment Fund 0.27% of 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy
Infrastructure Fund 80% of the net revenue realized from the
6.25% general rate on the selling price of Illinois-mined coal
that was sold to an eligible business. For purposes of this
paragraph, the term "eligible business" means a new electric
generating facility certified pursuant to Section 605-332 of
the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
Subject to payment of amounts into the Build Illinois Fund,
the McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, and the Energy Infrastructure Fund pursuant to
the preceding paragraphs or in any amendments to this Section
hereafter enacted, beginning on the first day of the first
calendar month to occur on or after August 26, 2014 (the
effective date of Public Act 98-1098), each month, from the
collections made under Section 9 of the Use Tax Act, Section 9
of the Service Use Tax Act, Section 9 of the Service Occupation

SB3445 - 97 - LRB100 20331 HLH 35618 b
Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
the Department shall pay into the Tax Compliance and
Administration Fund, to be used, subject to appropriation, to
fund additional auditors and compliance personnel at the
Department of Revenue, an amount equal to 1/12 of 5% of 80% of
the cash receipts collected during the preceding fiscal year by
the Audit Bureau of the Department under the Use Tax Act, the
Service Use Tax Act, the Service Occupation Tax Act, the
Retailers' Occupation Tax Act, and associated local occupation
and use taxes administered by the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
Compliance and Administration Fund as provided in this Section,
beginning on July 1, 2018 the Department shall pay each month
into the Downstate Public Transportation Fund the moneys
required to be so paid under Section 2-3 of the Downstate
Public Transportation Act.
Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the State
Treasury and 25% shall be reserved in a special account and
used only for the transfer to the Common School Fund as part of
the monthly transfer from the General Revenue Fund in
accordance with Section 8a of the State Finance Act.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller

SB3445 - 98 - LRB100 20331 HLH 35618 b
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to such
sales, if the retailers who are affected do not make written
objection to the Department to this arrangement.
(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
99-933, eff. 1-27-17; 100-303, eff. 8-24-17; 100-363, eff.
7-1-18; revised 10-20-17.)
(35 ILCS 105/10) (from Ch. 120, par. 439.10)
Sec. 10. Except as to motor vehicles, aircraft, watercraft,
and trailers, and except as to cigarettes as defined in the
Cigarette Use Tax Act, when tangible personal property is
purchased from a retailer for use in this State by a purchaser
who did not pay the tax imposed by this Act to the retailer,

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and who does not file returns with the Department as a retailer
under Section 9 of this Act, such purchaser (by the last day of
the month following the calendar month in which such purchaser
makes any payment upon the selling price of such property)
shall, except as otherwise provided in this Section, file a
return with the Department and pay the tax upon that portion of
the selling price so paid by the purchaser during the preceding
calendar month. When tangible personal property, other than
motor vehicles and trailers, is purchased by a lessor, under a
lease for one year or longer, executed or in effect at the time
of purchase to an interstate carrier for hire, who did not pay
the tax imposed by this Act to the retailer, such lessor (by
the last day of the month following the calendar month in which
such property reverts to the use of such lessor) shall file a
return with the Department and pay the tax upon the fair market
value of such property on the date of such reversion. However,
in determining the fair market value at the time of reversion,
the fair market value of such property shall not exceed the
original purchase price of the property that was paid by the
lessor at the time of purchase. Such return shall be filed on a
form prescribed by the Department and shall contain such
information as the Department may reasonably require. Such
return and payment from the purchaser shall be submitted to the
Department sooner than the last day of the month after the
month in which the purchase is made to the extent that that may
be necessary in order to secure the title to a motor vehicle or

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the certificate of registration for an aircraft. However,
except as to motor vehicles and aircraft, and except as to
cigarettes as defined in the Cigarette Use Tax Act, if the
purchaser's annual use tax liability does not exceed $600, the
purchaser may file the return on an annual basis on or before
April 15th of the year following the year use tax liability was
incurred. Individual purchasers with an annual use tax
liability that does not exceed $600 may, in lieu of the filing
and payment requirements in this Section, file and pay in
compliance with Section 502.1 of the Illinois Income Tax Act.
If cigarettes, as defined in the Cigarette Use Tax Act, are
purchased from a retailer for use in this State by a purchaser
who did not pay the tax imposed by this Act to the retailer,
and who does not file returns with the Department as a retailer
under Section 9 of this Act, such purchaser must, within 30
days after acquiring the cigarettes, file a return with the
Department and pay the tax upon that portion of the selling
price so paid by the purchaser for the cigarettes.
In addition with respect to motor vehicles, aircraft,
watercraft, and trailers, a purchaser of such tangible personal
property for use in this State, who purchases such tangible
personal property from an out-of-state retailer, shall file
with the Department, upon a form to be prescribed and supplied
by the Department, a return for each such item of tangible
personal property purchased, except that if, in the same
transaction, (i) a purchaser of motor vehicles, aircraft,

SB3445 - 101 - LRB100 20331 HLH 35618 b
watercraft, or trailers who is a retailer of motor vehicles,
aircraft, watercraft, or trailers purchases more than one motor
vehicle, aircraft, watercraft, or trailer for the purpose of
resale or (ii) a purchaser of motor vehicles, aircraft,
watercraft, or trailers purchases more than one motor vehicle,
aircraft, watercraft, or trailer for use as qualifying rolling
stock as provided in Section 3-55 of this Act, then the
purchaser may report the purchase of all motor vehicles,
aircraft, watercraft, or trailers involved in that transaction
to the Department on a single return prescribed by the
Department. Such return in the case of motor vehicles and
aircraft must show the name and address of the seller, the
name, address of purchaser, the amount of the selling price
including the amount allowed by the retailer for traded in
property, if any; the amount allowed by the retailer for the
traded-in tangible personal property, if any, to the extent to
which Section 2 of this Act allows an exemption for the value
of traded-in property; the balance payable after deducting such
trade-in allowance from the total selling price; the amount of
tax due from the purchaser with respect to such transaction;
the amount of tax collected from the purchaser by the retailer
on such transaction (or satisfactory evidence that such tax is
not due in that particular instance if that is claimed to be
the fact); the place and date of the sale, a sufficient
identification of the property sold, and such other information
as the Department may reasonably require.

SB3445 - 102 - LRB100 20331 HLH 35618 b
Such return shall be filed not later than 30 days after
such motor vehicle or aircraft is brought into this State for
use.
For purposes of this Section, "watercraft" means a Class 2,
Class 3, or Class 4 watercraft as defined in Section 3-2 of the
Boat Registration and Safety Act, a personal watercraft, or any
boat equipped with an inboard motor.
The return and tax remittance or proof of exemption from
the tax that is imposed by this Act may be transmitted to the
Department by way of the State agency with which, or State
officer with whom, the tangible personal property must be
titled or registered (if titling or registration is required)
if the Department and such agency or State officer determine
that this procedure will expedite the processing of
applications for title or registration.
With each such return, the purchaser shall remit the proper
amount of tax due (or shall submit satisfactory evidence that
the sale is not taxable if that is the case), to the Department
or its agents, whereupon the Department shall issue, in the
purchaser's name, a tax receipt (or a certificate of exemption
if the Department is satisfied that the particular sale is tax
exempt) which such purchaser may submit to the agency with
which, or State officer with whom, he must title or register
the tangible personal property that is involved (if titling or
registration is required) in support of such purchaser's
application for an Illinois certificate or other evidence of

SB3445 - 103 - LRB100 20331 HLH 35618 b
title or registration to such tangible personal property.
When a purchaser pays a tax imposed by this Act directly to
the Department, the Department (upon request therefor from such
purchaser) shall issue an appropriate receipt to such purchaser
showing that he has paid such tax to the Department. Such
receipt shall be sufficient to relieve the purchaser from
further liability for the tax to which such receipt may refer.
A user who is liable to pay use tax directly to the
Department only occasionally and not on a frequently recurring
basis, and who is not required to file returns with the
Department as a retailer under Section 9 of this Act, or under
the "Retailers' Occupation Tax Act", or as a registrant with
the Department under the "Service Occupation Tax Act" or the
"Service Use Tax Act", need not register with the Department.
However, if such a user has a frequently recurring direct use
tax liability to pay to the Department, such user shall be
required to register with the Department on forms prescribed by
the Department and to obtain and display a certificate of
registration from the Department. In that event, all of the
provisions of Section 9 of this Act concerning the filing of
regular monthly, quarterly or annual tax returns and all of the
provisions of Section 2a of the "Retailers' Occupation Tax Act"
concerning the requirements for registrants to post bond or
other security with the Department, as the provisions of such
sections now exist or may hereafter be amended, shall apply to
such users to the same extent as if such provisions were

SB3445 - 104 - LRB100 20331 HLH 35618 b
included herein.
(Source: P.A. 100-321, eff. 8-24-17.)
Section 35. The Service Use Tax Act is amended by changing
Sections 3-5, 3-5.5, and 9 as follows:
(35 ILCS 110/3-5)
Sec. 3-5. Exemptions. Use of the following tangible
personal property is exempt from the tax imposed by this Act:
(1) Personal property purchased from a corporation,
society, association, foundation, institution, or
organization, other than a limited liability company, that is
organized and operated as a not-for-profit service enterprise
for the benefit of persons 65 years of age or older if the
personal property was not purchased by the enterprise for the
purpose of resale by the enterprise.
(2) Personal property purchased by a non-profit Illinois
county fair association for use in conducting, operating, or
promoting the county fair.
(3) Personal property purchased by a not-for-profit arts or
cultural organization that establishes, by proof required by
the Department by rule, that it has received an exemption under
Section 501(c)(3) of the Internal Revenue Code and that is
organized and operated primarily for the presentation or
support of arts or cultural programming, activities, or
services. These organizations include, but are not limited to,

SB3445 - 105 - LRB100 20331 HLH 35618 b
music and dramatic arts organizations such as symphony
orchestras and theatrical groups, arts and cultural service
organizations, local arts councils, visual arts organizations,
and media arts organizations. On and after the effective date
of this amendatory Act of the 92nd General Assembly, however,
an entity otherwise eligible for this exemption shall not make
tax-free purchases unless it has an active identification
number issued by the Department.
(4) Legal tender, currency, medallions, or gold or silver
coinage issued by the State of Illinois, the government of the
United States of America, or the government of any foreign
country, and bullion.
(5) Until July 1, 2003 and beginning again on September 1,
2004 through August 30, 2014, graphic arts machinery and
equipment, including repair and replacement parts, both new and
used, and including that manufactured on special order or
purchased for lease, certified by the purchaser to be used
primarily for graphic arts production. Equipment includes
chemicals or chemicals acting as catalysts but only if the
chemicals or chemicals acting as catalysts effect a direct and
immediate change upon a graphic arts product. Beginning on July
1, 2017, graphic arts machinery and equipment is included in
the manufacturing and assembling machinery and equipment
exemption under Section 2 of this Act.
(6) Personal property purchased from a teacher-sponsored
student organization affiliated with an elementary or

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secondary school located in Illinois.
(7) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by the
purchaser to be used primarily for production agriculture or
State or federal agricultural programs, including individual
replacement parts for the machinery and equipment, including
machinery and equipment purchased for lease, and including
implements of husbandry defined in Section 1-130 of the
Illinois Vehicle Code, farm machinery and agricultural
chemical and fertilizer spreaders, and nurse wagons required to
be registered under Section 3-809 of the Illinois Vehicle Code,
but excluding other motor vehicles required to be registered
under the Illinois Vehicle Code. Horticultural polyhouses or
hoop houses used for propagating, growing, or overwintering
plants shall be considered farm machinery and equipment under
this item (7). Agricultural chemical tender tanks and dry boxes
shall include units sold separately from a motor vehicle
required to be licensed and units sold mounted on a motor
vehicle required to be licensed if the selling price of the
tender is separately stated.
Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be
installed on farm machinery and equipment including, but not
limited to, tractors, harvesters, sprayers, planters, seeders,
or spreaders. Precision farming equipment includes, but is not
limited to, soil testing sensors, computers, monitors,

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software, global positioning and mapping systems, and other
such equipment.
Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in the
computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not limited
to, the collection, monitoring, and correlation of animal and
crop data for the purpose of formulating animal diets and
agricultural chemicals. This item (7) is exempt from the
provisions of Section 3-75.
(8) Until June 30, 2013, fuel and petroleum products sold
to or used by an air common carrier, certified by the carrier
to be used for consumption, shipment, or storage in the conduct
of its business as an air common carrier, for a flight destined
for or returning from a location or locations outside the
United States without regard to previous or subsequent domestic
stopovers.
Beginning July 1, 2013, fuel and petroleum products sold to
or used by an air carrier, certified by the carrier to be used
for consumption, shipment, or storage in the conduct of its
business as an air common carrier, for a flight that (i) is
engaged in foreign trade or is engaged in trade between the
United States and any of its possessions and (ii) transports at
least one individual or package for hire from the city of
origination to the city of final destination on the same
aircraft, without regard to a change in the flight number of

SB3445 - 108 - LRB100 20331 HLH 35618 b
that aircraft.
(9) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of
food and beverages acquired as an incident to the purchase of a
service from a serviceman, to the extent that the proceeds of
the service charge are in fact turned over as tips or as a
substitute for tips to the employees who participate directly
in preparing, serving, hosting or cleaning up the food or
beverage function with respect to which the service charge is
imposed.
(10) Until July 1, 2003, oil field exploration, drilling,
and production equipment, including (i) rigs and parts of rigs,
rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
tubular goods, including casing and drill strings, (iii) pumps
and pump-jack units, (iv) storage tanks and flow lines, (v) any
individual replacement part for oil field exploration,
drilling, and production equipment, and (vi) machinery and
equipment purchased for lease; but excluding motor vehicles
required to be registered under the Illinois Vehicle Code.
(11) Proceeds from the sale of photoprocessing machinery
and equipment, including repair and replacement parts, both new
and used, including that manufactured on special order,
certified by the purchaser to be used primarily for
photoprocessing, and including photoprocessing machinery and
equipment purchased for lease.
(12) Coal and aggregate exploration, mining, off-highway

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

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

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

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

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that compare favorably in their scope and intensity with the
course of study presented in tax-supported schools, and
vocational or technical schools or institutes organized and
operated exclusively to provide a course of study of not less
than 6 weeks duration and designed to prepare individuals to
follow a trade or to pursue a manual, technical, mechanical,
industrial, business, or commercial occupation.
(21) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for the
benefit of a public or private elementary or secondary school,
a group of those schools, or one or more school districts if
the events are sponsored by an entity recognized by the school
district that consists primarily of volunteers and includes
parents and teachers of the school children. This paragraph
does not apply to fundraising events (i) for the benefit of
private home instruction or (ii) for which the fundraising
entity purchases the personal property sold at the events from
another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that profits
from the sale to the fundraising entity. This paragraph is
exempt from the provisions of Section 3-75.
(22) Beginning January 1, 2000 and through December 31,
2001, new or used automatic vending machines that prepare and
serve hot food and beverages, including coffee, soup, and other
items, and replacement parts for these machines. Beginning
January 1, 2002 and through June 30, 2003, machines and parts

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

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

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tax imposed under this Act or the Use Tax Act, as the case may
be, based on the fair market value of the property at the time
the nonqualifying use occurs. No lessor shall collect or
attempt to collect an amount (however designated) that purports
to reimburse that lessor for the tax imposed by this Act or the
Use Tax Act, as the case may be, if the tax has not been paid by
the lessor. If a lessor improperly collects any such amount
from the lessee, the lessee shall have a legal right to claim a
refund of that amount from the lessor. If, however, that amount
is not refunded to the lessee for any reason, the lessor is
liable to pay that amount to the Department. This paragraph is
exempt from the provisions of Section 3-75.
(26) Beginning January 1, 2008, tangible personal property
used in the construction or maintenance of a community water
supply, as defined under Section 3.145 of the Environmental
Protection Act, that is operated by a not-for-profit
corporation that holds a valid water supply permit issued under
Title IV of the Environmental Protection Act. This paragraph is
exempt from the provisions of Section 3-75.
(27) Beginning January 1, 2010, materials, parts,
equipment, components, and furnishings incorporated into or
upon an aircraft as part of the modification, refurbishment,
completion, replacement, repair, or maintenance of the
aircraft. This exemption includes consumable supplies used in
the modification, refurbishment, completion, replacement,
repair, and maintenance of aircraft, but excludes any

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materials, parts, equipment, components, and consumable
supplies used in the modification, replacement, repair, and
maintenance of aircraft engines or power plants, whether such
engines or power plants are installed or uninstalled upon any
such aircraft. "Consumable supplies" include, but are not
limited to, adhesive, tape, sandpaper, general purpose
lubricants, cleaning solution, latex gloves, and protective
films. This exemption applies only to the use of qualifying
tangible personal property transferred incident to the
modification, refurbishment, completion, replacement, repair,
or maintenance of aircraft by persons who (i) hold an Air
Agency Certificate and are empowered to operate an approved
repair station by the Federal Aviation Administration, (ii)
have a Class IV Rating, and (iii) conduct operations in
accordance with Part 145 of the Federal Aviation Regulations.
The exemption does not include aircraft operated by a
commercial air carrier providing scheduled passenger air
service pursuant to authority issued under Part 121 or Part 129
of the Federal Aviation Regulations. The changes made to this
paragraph (27) by Public Act 98-534 are declarative of existing
law.
(28) Tangible personal property purchased by a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall, but
only if the legal title to the municipal convention hall is

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transferred to the municipality without any further
consideration by or on behalf of the municipality at the time
of the completion of the municipal convention hall or upon the
retirement or redemption of any bonds or other debt instruments
issued by the public-facilities corporation in connection with
the development of the municipal convention hall. This
exemption includes existing public-facilities corporations as
provided in Section 11-65-25 of the Illinois Municipal Code.
This paragraph is exempt from the provisions of Section 3-75.
(29) Beginning January 1, 2017, menstrual pads, tampons,
and menstrual cups.
(30) Tangible personal property transferred to a purchaser
who is exempt from the tax imposed by this Act by operation of
federal law. This paragraph is exempt from the provisions of
Section 3-75.
(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
100-22, eff. 7-6-17.)
(35 ILCS 110/3-5.5)
Sec. 3-5.5. Food and drugs sold by not-for-profit
organizations; exemption. The Department shall not collect the
1% tax imposed under this Act on food for human consumption
that is to be consumed off the premises where it is sold (other
than alcoholic beverages, soft drinks, and food that has been
prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances, and

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insulin, urine testing materials, syringes, and needles used by
diabetics, for human use from any not-for-profit organization,
that sells food in a food distribution program at a price below
the retail cost of the food to purchasers who, as a condition
of participation in the program, are required to perform
community service, located in a county or municipality that
notifies the Department, in writing, that the county or
municipality does not want the tax to be collected from any of
such organizations located in the county or municipality.
(Source: P.A. 88-374.)
(35 ILCS 110/9) (from Ch. 120, par. 439.39)
(Text of Section before amendment by P.A. 100-363)
Sec. 9. Each serviceman required or authorized to collect
the tax herein imposed shall pay to the Department the amount
of such tax (except as otherwise provided) at the time when he
is required to file his return for the period during which such
tax was collected, less a discount of 2.1% prior to January 1,
1990 and 1.75% on and after January 1, 1990, or $5 per calendar
year, whichever is greater, which is allowed to reimburse the
serviceman for expenses incurred in collecting the tax, keeping
records, preparing and filing returns, remitting the tax and
supplying data to the Department on request. The discount
allowed under this Section is allowed only for returns that are
filed in the manner required by this Act. The Department may
disallow the discount for servicemen whose certificate of

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registration is revoked at the time the return is filed, but
only if the Department's decision to revoke the certificate of
registration has become final. A serviceman need not remit that
part of any tax collected by him to the extent that he is
required to pay and does pay the tax imposed by the Service
Occupation Tax Act with respect to his sale of service
involving the incidental transfer by him of the same property.
Except as provided hereinafter in this Section, on or
before the twentieth day of each calendar month, such
serviceman shall file a return for the preceding calendar month
in accordance with reasonable Rules and Regulations to be
promulgated by the Department. Such return shall be filed on a
form prescribed by the Department and shall contain such
information as the Department may reasonably require. On and
after January 1, 2018, with respect to servicemen whose annual
gross receipts average $20,000 or more, all returns required to
be filed pursuant to this Act shall be filed electronically.
Servicemen who demonstrate that they do not have access to the
Internet or demonstrate hardship in filing electronically may
petition the Department to waive the electronic filing
requirement.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each

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of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in business as a serviceman in this State;
3. The total amount of taxable receipts received by him
during the preceding calendar month, including receipts
from charge and time sales, but less all deductions allowed
by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the Department
may require.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1995, a taxpayer who has

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an average monthly tax liability of $50,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. The term "annual tax liability" shall be the
sum of the taxpayer's liabilities under this Act, and under all
other State and local occupation and use tax laws administered
by the Department, for the immediately preceding calendar year.
The term "average monthly tax liability" means the sum of the
taxpayer's liabilities under this Act, and under all other
State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12. Beginning on October 1, 2002, a taxpayer who has
a tax liability in the amount set forth in subsection (b) of
Section 2505-210 of the Department of Revenue Law shall make
all payments required by rules of the Department by electronic
funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make payments
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.

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All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those payments
in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
If the serviceman is otherwise required to file a monthly
return and if the serviceman's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February and March of a given year
being due by April 20 of such year; with the return for April,
May and June of a given year being due by July 20 of such year;
with the return for July, August and September of a given year
being due by October 20 of such year, and with the return for
October, November and December of a given year being due by
January 20 of the following year.
If the serviceman is otherwise required to file a monthly
or quarterly return and if the serviceman's average monthly tax
liability to the Department does not exceed $50, the Department
may authorize his returns to be filed on an annual basis, with
the return for a given year being due by January 20 of the
following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly

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returns.
Notwithstanding any other provision in this Act concerning
the time within which a serviceman may file his return, in the
case of any serviceman who ceases to engage in a kind of
business which makes him responsible for filing returns under
this Act, such serviceman shall file a final return under this
Act with the Department not more than 1 month after
discontinuing such business.
Where a serviceman collects the tax with respect to the
selling price of property which he sells and the purchaser
thereafter returns such property and the serviceman refunds the
selling price thereof to the purchaser, such serviceman shall
also refund, to the purchaser, the tax so collected from the
purchaser. When filing his return for the period in which he
refunds such tax to the purchaser, the serviceman may deduct
the amount of the tax so refunded by him to the purchaser from
any other Service Use Tax, Service Occupation Tax, retailers'
occupation tax or use tax which such serviceman may be required
to pay or remit to the Department, as shown by such return,
provided that the amount of the tax to be deducted shall
previously have been remitted to the Department by such
serviceman. If the serviceman shall not previously have
remitted the amount of such tax to the Department, he shall be
entitled to no deduction hereunder upon refunding such tax to
the purchaser.
Any serviceman filing a return hereunder shall also include

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the total tax upon the selling price of tangible personal
property purchased for use by him as an incident to a sale of
service, and such serviceman shall remit the amount of such tax
to the Department when filing such return.
If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable servicemen, who are required to file
returns hereunder and also under the Service Occupation Tax
Act, to furnish all the return information required by both
Acts on the one form.
Where the serviceman has more than one business registered
with the Department under separate registration hereunder,
such serviceman shall not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Tax Reform Fund, a special fund in
the State Treasury, the net revenue realized for the preceding
month from the 1% tax imposed under this Act on sales of food
for human consumption which is to be consumed off the premises
where it is sold (other than alcoholic beverages, soft drinks
and food which has been prepared for immediate consumption) and
prescription and nonprescription medicines, drugs, medical
appliances, products classified as Class III medical devices,
by the United States Food and Drug Administration that are used
for cancer treatment pursuant to a prescription, as well as any

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accessories and components related to those devices, and
insulin, urine testing materials, syringes and needles used by
diabetics.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 20% of the
net revenue realized for the preceding month from the 6.25%
general rate on transfers of tangible personal property, other
than tangible personal property which is purchased outside
Illinois at retail from a retailer and which is titled or
registered by an agency of this State's government.
Beginning August 1, 2000, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 100% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2013, each month the Department shall pay
into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service
Occupation Tax Act, and the Retailers' Occupation Tax Act an
amount equal to the average monthly deficit in the Underground

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Storage Tank Fund during the prior year, as certified annually
by the Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Use Tax Act, the Service Occupation Tax Act, and the
Retailers' Occupation Tax Act shall not exceed $18,000,000 in
any State fiscal year. As used in this paragraph, the "average
monthly deficit" shall be equal to the difference between the
average monthly claims for payment by the fund and the average
monthly revenues deposited into the fund, excluding payments
made pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, this Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, each month the Department shall deposit $500,000 into the
State Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called

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the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Bond Account
in the Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture securing

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Bonds issued and outstanding pursuant to the Build Illinois
Bond Act is sufficient, taking into account any future
investment income, to fully provide, in accordance with such
indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited in the Build Illinois Bond
Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois Fund;
provided, however, that any amounts paid to the Build Illinois
Fund in any fiscal year pursuant to this sentence shall be
deemed to constitute payments pursuant to clause (b) of the
preceding sentence and shall reduce the amount otherwise
payable for such fiscal year pursuant to clause (b) of the
preceding sentence. The moneys received by the Department
pursuant to this Act and required to be deposited into the

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Build Illinois Fund are subject to the pledge, claim and charge
set forth in Section 12 of the Build Illinois Bond Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000

SB3445 - 131 - LRB100 20331 HLH 35618 b
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 246,000,000
2022 260,000,000
2023 275,000,000
2024 275,000,000
2025 275,000,000
2026 279,000,000
2027 292,000,000
2028 307,000,000

SB3445 - 132 - LRB100 20331 HLH 35618 b
2029 322,000,000
2030 338,000,000
2031 350,000,000
2032 350,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total Deposit",
has been deposited.
Subject to payment of amounts into the Build Illinois Fund

SB3445 - 133 - LRB100 20331 HLH 35618 b
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois Tax
Increment Fund 0.27% of 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy
Infrastructure Fund 80% of the net revenue realized from the
6.25% general rate on the selling price of Illinois-mined coal
that was sold to an eligible business. For purposes of this
paragraph, the term "eligible business" means a new electric
generating facility certified pursuant to Section 605-332 of
the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
Subject to payment of amounts into the Build Illinois Fund,
the McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, and the Energy Infrastructure Fund pursuant to
the preceding paragraphs or in any amendments to this Section
hereafter enacted, beginning on the first day of the first
calendar month to occur on or after August 26, 2014 (the

SB3445 - 134 - LRB100 20331 HLH 35618 b
effective date of Public Act 98-1098) this amendatory Act of
the 98th General Assembly, each month, from the collections
made under Section 9 of the Use Tax Act, Section 9 of the
Service Use Tax Act, Section 9 of the Service Occupation Tax
Act, and Section 3 of the Retailers' Occupation Tax Act, the
Department shall pay into the Tax Compliance and Administration
Fund, to be used, subject to appropriation, to fund additional
auditors and compliance personnel at the Department of Revenue,
an amount equal to 1/12 of 5% of 80% of the cash receipts
collected during the preceding fiscal year by the Audit Bureau
of the Department under the Use Tax Act, the Service Use Tax
Act, the Service Occupation Tax Act, the Retailers' Occupation
Tax Act, and associated local occupation and use taxes
administered by the Department.
Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the
General Revenue Fund of the State Treasury and 25% shall be
reserved in a special account and used only for the transfer to
the Common School Fund as part of the monthly transfer from the
General Revenue Fund in accordance with Section 8a of the State
Finance Act.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act

SB3445 - 135 - LRB100 20331 HLH 35618 b
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
100-303, eff. 8-24-17; revised 1-22-18.)
(Text of Section after amendment by P.A. 100-363)
Sec. 9. Each serviceman required or authorized to collect
the tax herein imposed shall pay to the Department the amount
of such tax (except as otherwise provided) at the time when he
is required to file his return for the period during which such
tax was collected, less a discount of 2.1% prior to January 1,
1990 and 1.75% on and after January 1, 1990, or $5 per calendar
year, whichever is greater, which is allowed to reimburse the
serviceman for expenses incurred in collecting the tax, keeping
records, preparing and filing returns, remitting the tax and
supplying data to the Department on request. The discount
allowed under this Section is allowed only for returns that are
filed in the manner required by this Act. The Department may
disallow the discount for servicemen whose certificate of
registration is revoked at the time the return is filed, but
only if the Department's decision to revoke the certificate of
registration has become final. A serviceman need not remit that

SB3445 - 136 - LRB100 20331 HLH 35618 b
part of any tax collected by him to the extent that he is
required to pay and does pay the tax imposed by the Service
Occupation Tax Act with respect to his sale of service
involving the incidental transfer by him of the same property.
Except as provided hereinafter in this Section, on or
before the twentieth day of each calendar month, such
serviceman shall file a return for the preceding calendar month
in accordance with reasonable Rules and Regulations to be
promulgated by the Department. Such return shall be filed on a
form prescribed by the Department and shall contain such
information as the Department may reasonably require. On and
after January 1, 2018, with respect to servicemen whose annual
gross receipts average $20,000 or more, all returns required to
be filed pursuant to this Act shall be filed electronically.
Servicemen who demonstrate that they do not have access to the
Internet or demonstrate hardship in filing electronically may
petition the Department to waive the electronic filing
requirement.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;

SB3445 - 137 - LRB100 20331 HLH 35618 b
2. The address of the principal place of business from
which he engages in business as a serviceman in this State;
3. The total amount of taxable receipts received by him
during the preceding calendar month, including receipts
from charge and time sales, but less all deductions allowed
by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the Department
may require.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1995, a taxpayer who has
an average monthly tax liability of $50,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 2000, a taxpayer who has

SB3445 - 138 - LRB100 20331 HLH 35618 b
an annual tax liability of $200,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. The term "annual tax liability" shall be the
sum of the taxpayer's liabilities under this Act, and under all
other State and local occupation and use tax laws administered
by the Department, for the immediately preceding calendar year.
The term "average monthly tax liability" means the sum of the
taxpayer's liabilities under this Act, and under all other
State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12. Beginning on October 1, 2002, a taxpayer who has
a tax liability in the amount set forth in subsection (b) of
Section 2505-210 of the Department of Revenue Law shall make
all payments required by rules of the Department by electronic
funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make payments
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those payments

SB3445 - 139 - LRB100 20331 HLH 35618 b
in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
If the serviceman is otherwise required to file a monthly
return and if the serviceman's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February and March of a given year
being due by April 20 of such year; with the return for April,
May and June of a given year being due by July 20 of such year;
with the return for July, August and September of a given year
being due by October 20 of such year, and with the return for
October, November and December of a given year being due by
January 20 of the following year.
If the serviceman is otherwise required to file a monthly
or quarterly return and if the serviceman's average monthly tax
liability to the Department does not exceed $50, the Department
may authorize his returns to be filed on an annual basis, with
the return for a given year being due by January 20 of the
following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
Notwithstanding any other provision in this Act concerning
the time within which a serviceman may file his return, in the

SB3445 - 140 - LRB100 20331 HLH 35618 b
case of any serviceman who ceases to engage in a kind of
business which makes him responsible for filing returns under
this Act, such serviceman shall file a final return under this
Act with the Department not more than 1 month after
discontinuing such business.
Where a serviceman collects the tax with respect to the
selling price of property which he sells and the purchaser
thereafter returns such property and the serviceman refunds the
selling price thereof to the purchaser, such serviceman shall
also refund, to the purchaser, the tax so collected from the
purchaser. When filing his return for the period in which he
refunds such tax to the purchaser, the serviceman may deduct
the amount of the tax so refunded by him to the purchaser from
any other Service Use Tax, Service Occupation Tax, retailers'
occupation tax or use tax which such serviceman may be required
to pay or remit to the Department, as shown by such return,
provided that the amount of the tax to be deducted shall
previously have been remitted to the Department by such
serviceman. If the serviceman shall not previously have
remitted the amount of such tax to the Department, he shall be
entitled to no deduction hereunder upon refunding such tax to
the purchaser.
Any serviceman filing a return hereunder shall also include
the total tax upon the selling price of tangible personal
property purchased for use by him as an incident to a sale of
service, and such serviceman shall remit the amount of such tax

SB3445 - 141 - LRB100 20331 HLH 35618 b
to the Department when filing such return.
If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable servicemen, who are required to file
returns hereunder and also under the Service Occupation Tax
Act, to furnish all the return information required by both
Acts on the one form.
Where the serviceman has more than one business registered
with the Department under separate registration hereunder,
such serviceman shall not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Tax Reform Fund, a special fund in
the State Treasury, the net revenue realized for the preceding
month from the 1% tax imposed under this Act on sales of food
for human consumption which is to be consumed off the premises
where it is sold (other than alcoholic beverages, soft drinks
and food which has been prepared for immediate consumption) and
prescription and nonprescription medicines, drugs, medical
appliances, products classified as Class III medical devices,
by the United States Food and Drug Administration that are used
for cancer treatment pursuant to a prescription, as well as any
accessories and components related to those devices, and
insulin, urine testing materials, syringes and needles used by
diabetics.

SB3445 - 142 - LRB100 20331 HLH 35618 b
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 20% of the
net revenue realized for the preceding month from the 6.25%
general rate on transfers of tangible personal property, other
than tangible personal property which is purchased outside
Illinois at retail from a retailer and which is titled or
registered by an agency of this State's government.
Beginning August 1, 2000, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 100% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2013, each month the Department shall pay
into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service
Occupation Tax Act, and the Retailers' Occupation Tax Act an
amount equal to the average monthly deficit in the Underground
Storage Tank Fund during the prior year, as certified annually
by the Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,

SB3445 - 143 - LRB100 20331 HLH 35618 b
the Use Tax Act, the Service Occupation Tax Act, and the
Retailers' Occupation Tax Act shall not exceed $18,000,000 in
any State fiscal year. As used in this paragraph, the "average
monthly deficit" shall be equal to the difference between the
average monthly claims for payment by the fund and the average
monthly revenues deposited into the fund, excluding payments
made pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, this Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, each month the Department shall deposit $500,000 into the
State Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois

SB3445 - 144 - LRB100 20331 HLH 35618 b
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Bond Account
in the Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture securing
Bonds issued and outstanding pursuant to the Build Illinois
Bond Act is sufficient, taking into account any future
investment income, to fully provide, in accordance with such

SB3445 - 145 - LRB100 20331 HLH 35618 b
indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited in the Build Illinois Bond
Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois Fund;
provided, however, that any amounts paid to the Build Illinois
Fund in any fiscal year pursuant to this sentence shall be
deemed to constitute payments pursuant to clause (b) of the
preceding sentence and shall reduce the amount otherwise
payable for such fiscal year pursuant to clause (b) of the
preceding sentence. The moneys received by the Department
pursuant to this Act and required to be deposited into the
Build Illinois Fund are subject to the pledge, claim and charge
set forth in Section 12 of the Build Illinois Bond Act.
Subject to payment of amounts into the Build Illinois Fund

SB3445 - 146 - LRB100 20331 HLH 35618 b
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000

SB3445 - 147 - LRB100 20331 HLH 35618 b
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 246,000,000
2022 260,000,000
2023 275,000,000
2024 275,000,000
2025 275,000,000
2026 279,000,000
2027 292,000,000
2028 307,000,000
2029 322,000,000
2030 338,000,000
2031 350,000,000

SB3445 - 148 - LRB100 20331 HLH 35618 b
2032 350,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total Deposit",
has been deposited.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,

SB3445 - 149 - LRB100 20331 HLH 35618 b
2013, the Department shall each month pay into the Illinois Tax
Increment Fund 0.27% of 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy
Infrastructure Fund 80% of the net revenue realized from the
6.25% general rate on the selling price of Illinois-mined coal
that was sold to an eligible business. For purposes of this
paragraph, the term "eligible business" means a new electric
generating facility certified pursuant to Section 605-332 of
the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
Subject to payment of amounts into the Build Illinois Fund,
the McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, and the Energy Infrastructure Fund pursuant to
the preceding paragraphs or in any amendments to this Section
hereafter enacted, beginning on the first day of the first
calendar month to occur on or after August 26, 2014 (the
effective date of Public Act 98-1098) this amendatory Act of
the 98th General Assembly, each month, from the collections
made under Section 9 of the Use Tax Act, Section 9 of the

SB3445 - 150 - LRB100 20331 HLH 35618 b
Service Use Tax Act, Section 9 of the Service Occupation Tax
Act, and Section 3 of the Retailers' Occupation Tax Act, the
Department shall pay into the Tax Compliance and Administration
Fund, to be used, subject to appropriation, to fund additional
auditors and compliance personnel at the Department of Revenue,
an amount equal to 1/12 of 5% of 80% of the cash receipts
collected during the preceding fiscal year by the Audit Bureau
of the Department under the Use Tax Act, the Service Use Tax
Act, the Service Occupation Tax Act, the Retailers' Occupation
Tax Act, and associated local occupation and use taxes
administered by the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
Compliance and Administration Fund as provided in this Section,
beginning on July 1, 2018 the Department shall pay each month
into the Downstate Public Transportation Fund the moneys
required to be so paid under Section 2-3 of the Downstate
Public Transportation Act.
Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the
General Revenue Fund of the State Treasury and 25% shall be
reserved in a special account and used only for the transfer to
the Common School Fund as part of the monthly transfer from the
General Revenue Fund in accordance with Section 8a of the State
Finance Act.

SB3445 - 151 - LRB100 20331 HLH 35618 b
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
100-303, eff. 8-24-17; 100-363, eff. 7-1-18; revised 1-22-18.)
Section 40. The Service Occupation Tax Act is amended by
changing Sections 3-5, 3-5.5 and 9 as follows:
(35 ILCS 115/3-5)
Sec. 3-5. Exemptions. The following tangible personal
property is exempt from the tax imposed by this Act:
(1) Personal property sold by a corporation, society,
association, foundation, institution, or organization, other
than a limited liability company, that is organized and
operated as a not-for-profit service enterprise for the benefit
of persons 65 years of age or older if the personal property
was not purchased by the enterprise for the purpose of resale

SB3445 - 152 - LRB100 20331 HLH 35618 b
by the enterprise.
(2) Personal property purchased by a not-for-profit
Illinois county fair association for use in conducting,
operating, or promoting the county fair.
(3) Personal property purchased by any not-for-profit arts
or cultural organization that establishes, by proof required by
the Department by rule, that it has received an exemption under
Section 501(c)(3) of the Internal Revenue Code and that is
organized and operated primarily for the presentation or
support of arts or cultural programming, activities, or
services. These organizations include, but are not limited to,
music and dramatic arts organizations such as symphony
orchestras and theatrical groups, arts and cultural service
organizations, local arts councils, visual arts organizations,
and media arts organizations. On and after the effective date
of this amendatory Act of the 92nd General Assembly, however,
an entity otherwise eligible for this exemption shall not make
tax-free purchases unless it has an active identification
number issued by the Department.
(4) Legal tender, currency, medallions, or gold or silver
coinage issued by the State of Illinois, the government of the
United States of America, or the government of any foreign
country, and bullion.
(5) Until July 1, 2003 and beginning again on September 1,
2004 through August 30, 2014, graphic arts machinery and
equipment, including repair and replacement parts, both new and

SB3445 - 153 - LRB100 20331 HLH 35618 b
used, and including that manufactured on special order or
purchased for lease, certified by the purchaser to be used
primarily for graphic arts production. Equipment includes
chemicals or chemicals acting as catalysts but only if the
chemicals or chemicals acting as catalysts effect a direct and
immediate change upon a graphic arts product. Beginning on July
1, 2017, graphic arts machinery and equipment is included in
the manufacturing and assembling machinery and equipment
exemption under Section 2 of this Act.
(6) Personal property sold by a teacher-sponsored student
organization affiliated with an elementary or secondary school
located in Illinois.
(7) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by the
purchaser to be used primarily for production agriculture or
State or federal agricultural programs, including individual
replacement parts for the machinery and equipment, including
machinery and equipment purchased for lease, and including
implements of husbandry defined in Section 1-130 of the
Illinois Vehicle Code, farm machinery and agricultural
chemical and fertilizer spreaders, and nurse wagons required to
be registered under Section 3-809 of the Illinois Vehicle Code,
but excluding other motor vehicles required to be registered
under the Illinois Vehicle Code. Horticultural polyhouses or
hoop houses used for propagating, growing, or overwintering
plants shall be considered farm machinery and equipment under

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this item (7). Agricultural chemical tender tanks and dry boxes
shall include units sold separately from a motor vehicle
required to be licensed and units sold mounted on a motor
vehicle required to be licensed if the selling price of the
tender is separately stated.
Farm machinery and equipment shall include precision
farming equipment that is installed or purchased to be
installed on farm machinery and equipment including, but not
limited to, tractors, harvesters, sprayers, planters, seeders,
or spreaders. Precision farming equipment includes, but is not
limited to, soil testing sensors, computers, monitors,
software, global positioning and mapping systems, and other
such equipment.
Farm machinery and equipment also includes computers,
sensors, software, and related equipment used primarily in the
computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not limited
to, the collection, monitoring, and correlation of animal and
crop data for the purpose of formulating animal diets and
agricultural chemicals. This item (7) is exempt from the
provisions of Section 3-55.
(8) Until June 30, 2013, fuel and petroleum products sold
to or used by an air common carrier, certified by the carrier
to be used for consumption, shipment, or storage in the conduct
of its business as an air common carrier, for a flight destined
for or returning from a location or locations outside the

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United States without regard to previous or subsequent domestic
stopovers.
Beginning July 1, 2013, fuel and petroleum products sold to
or used by an air carrier, certified by the carrier to be used
for consumption, shipment, or storage in the conduct of its
business as an air common carrier, for a flight that (i) is
engaged in foreign trade or is engaged in trade between the
United States and any of its possessions and (ii) transports at
least one individual or package for hire from the city of
origination to the city of final destination on the same
aircraft, without regard to a change in the flight number of
that aircraft.
(9) Proceeds of mandatory service charges separately
stated on customers' bills for the purchase and consumption of
food and beverages, to the extent that the proceeds of the
service charge are in fact turned over as tips or as a
substitute for tips to the employees who participate directly
in preparing, serving, hosting or cleaning up the food or
beverage function with respect to which the service charge is
imposed.
(10) Until July 1, 2003, oil field exploration, drilling,
and production equipment, including (i) rigs and parts of rigs,
rotary rigs, cable tool rigs, and workover rigs, (ii) pipe and
tubular goods, including casing and drill strings, (iii) pumps
and pump-jack units, (iv) storage tanks and flow lines, (v) any
individual replacement part for oil field exploration,

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

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

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

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

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(22) Beginning January 1, 2000, personal property,
including food, purchased through fundraising events for the
benefit of a public or private elementary or secondary school,
a group of those schools, or one or more school districts if
the events are sponsored by an entity recognized by the school
district that consists primarily of volunteers and includes
parents and teachers of the school children. This paragraph
does not apply to fundraising events (i) for the benefit of
private home instruction or (ii) for which the fundraising
entity purchases the personal property sold at the events from
another individual or entity that sold the property for the
purpose of resale by the fundraising entity and that profits
from the sale to the fundraising entity. This paragraph is
exempt from the provisions of Section 3-55.
(23) Beginning January 1, 2000 and through December 31,
2001, new or used automatic vending machines that prepare and
serve hot food and beverages, including coffee, soup, and other
items, and replacement parts for these machines. Beginning
January 1, 2002 and through June 30, 2003, machines and parts
for machines used in commercial, coin-operated amusement and
vending business if a use or occupation tax is paid on the
gross receipts derived from the use of the commercial,
coin-operated amusement and vending machines. This paragraph
is exempt from the provisions of Section 3-55.
(24) Beginning on the effective date of this amendatory Act
of the 92nd General Assembly, computers and communications

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

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and thereafter used or consumed solely outside this State. The
Director of Revenue shall, pursuant to rules adopted in
accordance with the Illinois Administrative Procedure Act,
issue a permit to any taxpayer in good standing with the
Department who is eligible for the exemption under this
paragraph (26). The permit issued under this paragraph (26)
shall authorize the holder, to the extent and in the manner
specified in the rules adopted under this Act, to purchase
tangible personal property from a retailer exempt from the
taxes imposed by this Act. Taxpayers shall maintain all
necessary books and records to substantiate the use and
consumption of all such tangible personal property outside of
the State of Illinois.
(27) Beginning January 1, 2008, tangible personal property
used in the construction or maintenance of a community water
supply, as defined under Section 3.145 of the Environmental
Protection Act, that is operated by a not-for-profit
corporation that holds a valid water supply permit issued under
Title IV of the Environmental Protection Act. This paragraph is
exempt from the provisions of Section 3-55.
(28) Tangible personal property sold to a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall, but
only if the legal title to the municipal convention hall is
transferred to the municipality without any further

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consideration by or on behalf of the municipality at the time
of the completion of the municipal convention hall or upon the
retirement or redemption of any bonds or other debt instruments
issued by the public-facilities corporation in connection with
the development of the municipal convention hall. This
exemption includes existing public-facilities corporations as
provided in Section 11-65-25 of the Illinois Municipal Code.
This paragraph is exempt from the provisions of Section 3-55.
(29) Beginning January 1, 2010, materials, parts,
equipment, components, and furnishings incorporated into or
upon an aircraft as part of the modification, refurbishment,
completion, replacement, repair, or maintenance of the
aircraft. This exemption includes consumable supplies used in
the modification, refurbishment, completion, replacement,
repair, and maintenance of aircraft, but excludes any
materials, parts, equipment, components, and consumable
supplies used in the modification, replacement, repair, and
maintenance of aircraft engines or power plants, whether such
engines or power plants are installed or uninstalled upon any
such aircraft. "Consumable supplies" include, but are not
limited to, adhesive, tape, sandpaper, general purpose
lubricants, cleaning solution, latex gloves, and protective
films. This exemption applies only to the transfer of
qualifying tangible personal property incident to the
modification, refurbishment, completion, replacement, repair,
or maintenance of an aircraft by persons who (i) hold an Air

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Agency Certificate and are empowered to operate an approved
repair station by the Federal Aviation Administration, (ii)
have a Class IV Rating, and (iii) conduct operations in
accordance with Part 145 of the Federal Aviation Regulations.
The exemption does not include aircraft operated by a
commercial air carrier providing scheduled passenger air
service pursuant to authority issued under Part 121 or Part 129
of the Federal Aviation Regulations. The changes made to this
paragraph (29) by Public Act 98-534 are declarative of existing
law.
(30) Beginning January 1, 2017, menstrual pads, tampons,
and menstrual cups.
(31) Tangible personal property transferred to a purchaser
who is exempt from the tax imposed by this Act by operation of
federal law. This paragraph is exempt from the provisions of
Section 3-55.
(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
100-22, eff. 7-6-17.)
(35 ILCS 115/3-5.5)
Sec. 3-5.5. Food and drugs sold by not-for-profit
organizations; exemption. The Department shall not collect the
1% tax imposed under this Act on food for human consumption
that is to be consumed off the premises where it is sold (other
than alcoholic beverages, soft drinks, and food that has been
prepared for immediate consumption) and prescription and

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nonprescription medicines, drugs, medical appliances, and
insulin, urine testing materials, syringes, and needles used by
diabetics, for human use from any not-for-profit organization,
that sells food in a food distribution program at a price below
the retail cost of the food to purchasers who, as a condition
of participation in the program, are required to perform
community service, located in a county or municipality that
notifies the Department, in writing, that the county or
municipality does not want the tax to be collected from any of
such organizations located in the county or municipality.
(Source: P.A. 88-374.)
(35 ILCS 115/9) (from Ch. 120, par. 439.109)
(Text of Section before amendment by P.A. 100-363)
Sec. 9. Each serviceman required or authorized to collect
the tax herein imposed shall pay to the Department the amount
of such tax at the time when he is required to file his return
for the period during which such tax was collectible, less a
discount of 2.1% prior to January 1, 1990, and 1.75% on and
after January 1, 1990, or $5 per calendar year, whichever is
greater, which is allowed to reimburse the serviceman for
expenses incurred in collecting the tax, keeping records,
preparing and filing returns, remitting the tax and supplying
data to the Department on request. The discount allowed under
this Section is allowed only for returns that are filed in the
manner required by this Act. The Department may disallow the

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discount for servicemen whose certificate of registration is
revoked at the time the return is filed, but only if the
Department's decision to revoke the certificate of
registration has become final.
Where such tangible personal property is sold under a
conditional sales contract, or under any other form of sale
wherein the payment of the principal sum, or a part thereof, is
extended beyond the close of the period for which the return is
filed, the serviceman, in collecting the tax may collect, for
each tax return period, only the tax applicable to the part of
the selling price actually received during such tax return
period.
Except as provided hereinafter in this Section, on or
before the twentieth day of each calendar month, such
serviceman shall file a return for the preceding calendar month
in accordance with reasonable rules and regulations to be
promulgated by the Department of Revenue. Such return shall be
filed on a form prescribed by the Department and shall contain
such information as the Department may reasonably require. On
and after January 1, 2018, with respect to servicemen whose
annual gross receipts average $20,000 or more, all returns
required to be filed pursuant to this Act shall be filed
electronically. Servicemen who demonstrate that they do not
have access to the Internet or demonstrate hardship in filing
electronically may petition the Department to waive the
electronic filing requirement.

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The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in business as a serviceman in this State;
3. The total amount of taxable receipts received by him
during the preceding calendar month, including receipts
from charge and time sales, but less all deductions allowed
by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the Department
may require.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Prior to October 1, 2003, and on and after September 1,
2004 a serviceman may accept a Manufacturer's Purchase Credit

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certification from a purchaser in satisfaction of Service Use
Tax as provided in Section 3-70 of the Service Use Tax Act if
the purchaser provides the appropriate documentation as
required by Section 3-70 of the Service Use Tax Act. A
Manufacturer's Purchase Credit certification, accepted prior
to October 1, 2003 or on or after September 1, 2004 by a
serviceman as provided in Section 3-70 of the Service Use Tax
Act, may be used by that serviceman to satisfy Service
Occupation Tax liability in the amount claimed in the
certification, not to exceed 6.25% of the receipts subject to
tax from a qualifying purchase. A Manufacturer's Purchase
Credit reported on any original or amended return filed under
this Act after October 20, 2003 for reporting periods prior to
September 1, 2004 shall be disallowed. Manufacturer's Purchase
Credit reported on annual returns due on or after January 1,
2005 will be disallowed for periods prior to September 1, 2004.
No Manufacturer's Purchase Credit may be used after September
30, 2003 through August 31, 2004 to satisfy any tax liability
imposed under this Act, including any audit liability.
If the serviceman's average monthly tax liability to the
Department does not exceed $200, the Department may authorize
his returns to be filed on a quarter annual basis, with the
return for January, February and March of a given year being
due by April 20 of such year; with the return for April, May
and June of a given year being due by July 20 of such year; with
the return for July, August and September of a given year being

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due by October 20 of such year, and with the return for
October, November and December of a given year being due by
January 20 of the following year.
If the serviceman's average monthly tax liability to the
Department does not exceed $50, the Department may authorize
his returns to be filed on an annual basis, with the return for
a given year being due by January 20 of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
Notwithstanding any other provision in this Act concerning
the time within which a serviceman may file his return, in the
case of any serviceman who ceases to engage in a kind of
business which makes him responsible for filing returns under
this Act, such serviceman shall file a final return under this
Act with the Department not more than 1 month after
discontinuing such business.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1995, a taxpayer who has
an average monthly tax liability of $50,000 or more shall make
all payments required by rules of the Department by electronic

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funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. The term "annual tax liability" shall be the
sum of the taxpayer's liabilities under this Act, and under all
other State and local occupation and use tax laws administered
by the Department, for the immediately preceding calendar year.
The term "average monthly tax liability" means the sum of the
taxpayer's liabilities under this Act, and under all other
State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12. Beginning on October 1, 2002, a taxpayer who has
a tax liability in the amount set forth in subsection (b) of
Section 2505-210 of the Department of Revenue Law shall make
all payments required by rules of the Department by electronic
funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make payments
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make

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payments by electronic funds transfer shall make those payments
in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
Where a serviceman collects the tax with respect to the
selling price of tangible personal property which he sells and
the purchaser thereafter returns such tangible personal
property and the serviceman refunds the selling price thereof
to the purchaser, such serviceman shall also refund, to the
purchaser, the tax so collected from the purchaser. When filing
his return for the period in which he refunds such tax to the
purchaser, the serviceman may deduct the amount of the tax so
refunded by him to the purchaser from any other Service
Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
Use Tax which such serviceman may be required to pay or remit
to the Department, as shown by such return, provided that the
amount of the tax to be deducted shall previously have been
remitted to the Department by such serviceman. If the
serviceman shall not previously have remitted the amount of
such tax to the Department, he shall be entitled to no
deduction hereunder upon refunding such tax to the purchaser.
If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable servicemen, who are required to file
returns hereunder and also under the Retailers' Occupation Tax

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Act, the Use Tax Act or the Service Use Tax Act, to furnish all
the return information required by all said Acts on the one
form.
Where the serviceman has more than one business registered
with the Department under separate registrations hereunder,
such serviceman shall file separate returns for each registered
business.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund the revenue realized for
the preceding month from the 1% tax imposed under this Act on
sales of food for human consumption which is to be consumed off
the premises where it is sold (other than alcoholic beverages,
soft drinks and food which has been prepared for immediate
consumption) and prescription and nonprescription medicines,
drugs, medical appliances, products classified as Class III
medical devices by the United States Food and Drug
Administration that are used for cancer treatment pursuant to a
prescription, as well as any accessories and components related
to those devices, and insulin, urine testing materials,
syringes and needles used by diabetics.
Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund 4% of the
revenue realized for the preceding month from the 6.25% general
rate.
Beginning August 1, 2000, each month the Department shall
pay into the County and Mass Transit District Fund 20% of the

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net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the revenue
realized for the preceding month from the 6.25% general rate on
transfers of tangible personal property.
Beginning August 1, 2000, each month the Department shall
pay into the Local Government Tax Fund 80% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of motor fuel and gasohol.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2013, each month the Department shall pay
into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service Use Tax
Act, and the Retailers' Occupation Tax Act an amount equal to
the average monthly deficit in the Underground Storage Tank
Fund during the prior year, as certified annually by the
Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Use Tax Act, the Service Use Tax Act, and the Retailers'

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Occupation Tax Act shall not exceed $18,000,000 in any State
fiscal year. As used in this paragraph, the "average monthly
deficit" shall be equal to the difference between the average
monthly claims for payment by the fund and the average monthly
revenues deposited into the fund, excluding payments made
pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, the Service
Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
each month the Department shall deposit $500,000 into the State
Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be

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

SB3445 - 176 - LRB100 20331 HLH 35618 b
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited in the Build Illinois Bond
Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois Fund;
provided, however, that any amounts paid to the Build Illinois
Fund in any fiscal year pursuant to this sentence shall be
deemed to constitute payments pursuant to clause (b) of the
preceding sentence and shall reduce the amount otherwise
payable for such fiscal year pursuant to clause (b) of the
preceding sentence. The moneys received by the Department
pursuant to this Act and required to be deposited into the
Build Illinois Fund are subject to the pledge, claim and charge
set forth in Section 12 of the Build Illinois Bond Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment

SB3445 - 177 - LRB100 20331 HLH 35618 b
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000

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2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 246,000,000
2022 260,000,000
2023 275,000,000
2024 275,000,000
2025 275,000,000
2026 279,000,000
2027 292,000,000
2028 307,000,000
2029 322,000,000
2030 338,000,000
2031 350,000,000
2032 350,000,000

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and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total Deposit",
has been deposited.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois Tax

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Increment Fund 0.27% of 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy
Infrastructure Fund 80% of the net revenue realized from the
6.25% general rate on the selling price of Illinois-mined coal
that was sold to an eligible business. For purposes of this
paragraph, the term "eligible business" means a new electric
generating facility certified pursuant to Section 605-332 of
the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
Subject to payment of amounts into the Build Illinois Fund,
the McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, and the Energy Infrastructure Fund pursuant to
the preceding paragraphs or in any amendments to this Section
hereafter enacted, beginning on the first day of the first
calendar month to occur on or after August 26, 2014 (the
effective date of Public Act 98-1098) this amendatory Act of
the 98th General Assembly, each month, from the collections
made under Section 9 of the Use Tax Act, Section 9 of the
Service Use Tax Act, Section 9 of the Service Occupation Tax

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Act, and Section 3 of the Retailers' Occupation Tax Act, the
Department shall pay into the Tax Compliance and Administration
Fund, to be used, subject to appropriation, to fund additional
auditors and compliance personnel at the Department of Revenue,
an amount equal to 1/12 of 5% of 80% of the cash receipts
collected during the preceding fiscal year by the Audit Bureau
of the Department under the Use Tax Act, the Service Use Tax
Act, the Service Occupation Tax Act, the Retailers' Occupation
Tax Act, and associated local occupation and use taxes
administered by the Department.
Of the remainder of the moneys received by the Department
pursuant to this Act, 75% shall be paid into the General
Revenue Fund of the State Treasury and 25% shall be reserved in
a special account and used only for the transfer to the Common
School Fund as part of the monthly transfer from the General
Revenue Fund in accordance with Section 8a of the State Finance
Act.
The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.
Such annual return to the Department shall include a statement
of gross receipts as shown by the taxpayer's last Federal
income tax return. If the total receipts of the business as
reported in the Federal income tax return do not agree with the

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gross receipts reported to the Department of Revenue for the
same period, the taxpayer shall attach to his annual return a
schedule showing a reconciliation of the 2 amounts and the
reasons for the difference. The taxpayer's annual return to the
Department shall also disclose the cost of goods sold by the
taxpayer during the year covered by such return, opening and
closing inventories of such goods for such year, cost of goods
used from stock or taken from stock and given away by the
taxpayer during such year, pay roll information of the
taxpayer's business during such year and any additional
reasonable information which the Department deems would be
helpful in determining the accuracy of the monthly, quarterly
or annual returns filed by such taxpayer as hereinbefore
provided for in this Section.
If the annual information return required by this Section
is not filed when and as required, the taxpayer shall be liable
as follows:
(i) Until January 1, 1994, the taxpayer shall be liable
for a penalty equal to 1/6 of 1% of the tax due from such
taxpayer under this Act during the period to be covered by
the annual return for each month or fraction of a month
until such return is filed as required, the penalty to be
assessed and collected in the same manner as any other
penalty provided for in this Act.
(ii) On and after January 1, 1994, the taxpayer shall
be liable for a penalty as described in Section 3-4 of the

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Uniform Penalty and Interest Act.
The chief executive officer, proprietor, owner or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person who
willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and punished
accordingly. The annual return form prescribed by the
Department shall include a warning that the person signing the
return may be liable for perjury.
The foregoing portion of this Section concerning the filing
of an annual information return shall not apply to a serviceman
who is not required to file an income tax return with the
United States Government.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
For greater simplicity of administration, it shall be
permissible for manufacturers, importers and wholesalers whose

SB3445 - 184 - LRB100 20331 HLH 35618 b
products are sold by numerous servicemen in Illinois, and who
wish to do so, to assume the responsibility for accounting and
paying to the Department all tax accruing under this Act with
respect to such sales, if the servicemen who are affected do
not make written objection to the Department to this
arrangement.
(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
100-303, eff. 8-24-17; revised 10-31-17)
(Text of Section after amendment by P.A. 100-363)
Sec. 9. Each serviceman required or authorized to collect
the tax herein imposed shall pay to the Department the amount
of such tax at the time when he is required to file his return
for the period during which such tax was collectible, less a
discount of 2.1% prior to January 1, 1990, and 1.75% on and
after January 1, 1990, or $5 per calendar year, whichever is
greater, which is allowed to reimburse the serviceman for
expenses incurred in collecting the tax, keeping records,
preparing and filing returns, remitting the tax and supplying
data to the Department on request. The discount allowed under
this Section is allowed only for returns that are filed in the
manner required by this Act. The Department may disallow the
discount for servicemen whose certificate of registration is
revoked at the time the return is filed, but only if the
Department's decision to revoke the certificate of
registration has become final.

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Where such tangible personal property is sold under a
conditional sales contract, or under any other form of sale
wherein the payment of the principal sum, or a part thereof, is
extended beyond the close of the period for which the return is
filed, the serviceman, in collecting the tax may collect, for
each tax return period, only the tax applicable to the part of
the selling price actually received during such tax return
period.
Except as provided hereinafter in this Section, on or
before the twentieth day of each calendar month, such
serviceman shall file a return for the preceding calendar month
in accordance with reasonable rules and regulations to be
promulgated by the Department of Revenue. Such return shall be
filed on a form prescribed by the Department and shall contain
such information as the Department may reasonably require. On
and after January 1, 2018, with respect to servicemen whose
annual gross receipts average $20,000 or more, all returns
required to be filed pursuant to this Act shall be filed
electronically. Servicemen who demonstrate that they do not
have access to the Internet or demonstrate hardship in filing
electronically may petition the Department to waive the
electronic filing requirement.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The

SB3445 - 186 - LRB100 20331 HLH 35618 b
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in business as a serviceman in this State;
3. The total amount of taxable receipts received by him
during the preceding calendar month, including receipts
from charge and time sales, but less all deductions allowed
by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the Department
may require.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Prior to October 1, 2003, and on and after September 1,
2004 a serviceman may accept a Manufacturer's Purchase Credit
certification from a purchaser in satisfaction of Service Use
Tax as provided in Section 3-70 of the Service Use Tax Act if
the purchaser provides the appropriate documentation as
required by Section 3-70 of the Service Use Tax Act. A

SB3445 - 187 - LRB100 20331 HLH 35618 b
Manufacturer's Purchase Credit certification, accepted prior
to October 1, 2003 or on or after September 1, 2004 by a
serviceman as provided in Section 3-70 of the Service Use Tax
Act, may be used by that serviceman to satisfy Service
Occupation Tax liability in the amount claimed in the
certification, not to exceed 6.25% of the receipts subject to
tax from a qualifying purchase. A Manufacturer's Purchase
Credit reported on any original or amended return filed under
this Act after October 20, 2003 for reporting periods prior to
September 1, 2004 shall be disallowed. Manufacturer's Purchase
Credit reported on annual returns due on or after January 1,
2005 will be disallowed for periods prior to September 1, 2004.
No Manufacturer's Purchase Credit may be used after September
30, 2003 through August 31, 2004 to satisfy any tax liability
imposed under this Act, including any audit liability.
If the serviceman's average monthly tax liability to the
Department does not exceed $200, the Department may authorize
his returns to be filed on a quarter annual basis, with the
return for January, February and March of a given year being
due by April 20 of such year; with the return for April, May
and June of a given year being due by July 20 of such year; with
the return for July, August and September of a given year being
due by October 20 of such year, and with the return for
October, November and December of a given year being due by
January 20 of the following year.
If the serviceman's average monthly tax liability to the

SB3445 - 188 - LRB100 20331 HLH 35618 b
Department does not exceed $50, the Department may authorize
his returns to be filed on an annual basis, with the return for
a given year being due by January 20 of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
Notwithstanding any other provision in this Act concerning
the time within which a serviceman may file his return, in the
case of any serviceman who ceases to engage in a kind of
business which makes him responsible for filing returns under
this Act, such serviceman shall file a final return under this
Act with the Department not more than 1 month after
discontinuing such business.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1995, a taxpayer who has
an average monthly tax liability of $50,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. The term "annual tax liability" shall be the

SB3445 - 189 - LRB100 20331 HLH 35618 b
sum of the taxpayer's liabilities under this Act, and under all
other State and local occupation and use tax laws administered
by the Department, for the immediately preceding calendar year.
The term "average monthly tax liability" means the sum of the
taxpayer's liabilities under this Act, and under all other
State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12. Beginning on October 1, 2002, a taxpayer who has
a tax liability in the amount set forth in subsection (b) of
Section 2505-210 of the Department of Revenue Law shall make
all payments required by rules of the Department by electronic
funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make payments
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those payments
in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the

SB3445 - 190 - LRB100 20331 HLH 35618 b
requirements of this Section.
Where a serviceman collects the tax with respect to the
selling price of tangible personal property which he sells and
the purchaser thereafter returns such tangible personal
property and the serviceman refunds the selling price thereof
to the purchaser, such serviceman shall also refund, to the
purchaser, the tax so collected from the purchaser. When filing
his return for the period in which he refunds such tax to the
purchaser, the serviceman may deduct the amount of the tax so
refunded by him to the purchaser from any other Service
Occupation Tax, Service Use Tax, Retailers' Occupation Tax or
Use Tax which such serviceman may be required to pay or remit
to the Department, as shown by such return, provided that the
amount of the tax to be deducted shall previously have been
remitted to the Department by such serviceman. If the
serviceman shall not previously have remitted the amount of
such tax to the Department, he shall be entitled to no
deduction hereunder upon refunding such tax to the purchaser.
If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable servicemen, who are required to file
returns hereunder and also under the Retailers' Occupation Tax
Act, the Use Tax Act or the Service Use Tax Act, to furnish all
the return information required by all said Acts on the one
form.
Where the serviceman has more than one business registered

SB3445 - 191 - LRB100 20331 HLH 35618 b
with the Department under separate registrations hereunder,
such serviceman shall file separate returns for each registered
business.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund the revenue realized for
the preceding month from the 1% tax imposed under this Act on
sales of food for human consumption which is to be consumed off
the premises where it is sold (other than alcoholic beverages,
soft drinks and food which has been prepared for immediate
consumption) and prescription and nonprescription medicines,
drugs, medical appliances, products classified as Class III
medical devices by the United States Food and Drug
Administration that are used for cancer treatment pursuant to a
prescription, as well as any accessories and components related
to those devices, and insulin, urine testing materials,
syringes and needles used by diabetics.
Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund 4% of the
revenue realized for the preceding month from the 6.25% general
rate.
Beginning August 1, 2000, each month the Department shall
pay into the County and Mass Transit District Fund 20% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the revenue

SB3445 - 192 - LRB100 20331 HLH 35618 b
realized for the preceding month from the 6.25% general rate on
transfers of tangible personal property.
Beginning August 1, 2000, each month the Department shall
pay into the Local Government Tax Fund 80% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of motor fuel and gasohol.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2013, each month the Department shall pay
into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service Use Tax
Act, and the Retailers' Occupation Tax Act an amount equal to
the average monthly deficit in the Underground Storage Tank
Fund during the prior year, as certified annually by the
Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Use Tax Act, the Service Use Tax Act, and the Retailers'
Occupation Tax Act shall not exceed $18,000,000 in any State
fiscal year. As used in this paragraph, the "average monthly
deficit" shall be equal to the difference between the average
monthly claims for payment by the fund and the average monthly

SB3445 - 193 - LRB100 20331 HLH 35618 b
revenues deposited into the fund, excluding payments made
pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, the Service
Use Tax Act, this Act, and the Retailers' Occupation Tax Act,
each month the Department shall deposit $500,000 into the State
Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to

SB3445 - 194 - LRB100 20331 HLH 35618 b
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Account in the
Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture securing
Bonds issued and outstanding pursuant to the Build Illinois
Bond Act is sufficient, taking into account any future
investment income, to fully provide, in accordance with such
indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the

SB3445 - 195 - LRB100 20331 HLH 35618 b
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited in the Build Illinois Bond
Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from
the Build Illinois Bond Account to the Build Illinois Bond
Retirement and Interest Fund pursuant to Section 13 of the
Build Illinois Bond Act, an amount equal to such deficiency
shall be immediately paid from other moneys received by the
Department pursuant to the Tax Acts to the Build Illinois Fund;
provided, however, that any amounts paid to the Build Illinois
Fund in any fiscal year pursuant to this sentence shall be
deemed to constitute payments pursuant to clause (b) of the
preceding sentence and shall reduce the amount otherwise
payable for such fiscal year pursuant to clause (b) of the
preceding sentence. The moneys received by the Department
pursuant to this Act and required to be deposited into the
Build Illinois Fund are subject to the pledge, claim and charge
set forth in Section 12 of the Build Illinois Bond Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not

SB3445 - 196 - LRB100 20331 HLH 35618 b
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000

SB3445 - 197 - LRB100 20331 HLH 35618 b
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 246,000,000
2022 260,000,000
2023 275,000,000
2024 275,000,000
2025 275,000,000
2026 279,000,000
2027 292,000,000
2028 307,000,000
2029 322,000,000
2030 338,000,000
2031 350,000,000
2032 350,000,000
and
each fiscal year
thereafter that bonds
are outstanding under

SB3445 - 198 - LRB100 20331 HLH 35618 b
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total Deposit",
has been deposited.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois Tax
Increment Fund 0.27% of 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois Fund

SB3445 - 199 - LRB100 20331 HLH 35618 b
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy
Infrastructure Fund 80% of the net revenue realized from the
6.25% general rate on the selling price of Illinois-mined coal
that was sold to an eligible business. For purposes of this
paragraph, the term "eligible business" means a new electric
generating facility certified pursuant to Section 605-332 of
the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
Subject to payment of amounts into the Build Illinois Fund,
the McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, and the Energy Infrastructure Fund pursuant to
the preceding paragraphs or in any amendments to this Section
hereafter enacted, beginning on the first day of the first
calendar month to occur on or after August 26, 2014 (the
effective date of Public Act 98-1098) this amendatory Act of
the 98th General Assembly, each month, from the collections
made under Section 9 of the Use Tax Act, Section 9 of the
Service Use Tax Act, Section 9 of the Service Occupation Tax
Act, and Section 3 of the Retailers' Occupation Tax Act, the
Department shall pay into the Tax Compliance and Administration
Fund, to be used, subject to appropriation, to fund additional
auditors and compliance personnel at the Department of Revenue,

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an amount equal to 1/12 of 5% of 80% of the cash receipts
collected during the preceding fiscal year by the Audit Bureau
of the Department under the Use Tax Act, the Service Use Tax
Act, the Service Occupation Tax Act, the Retailers' Occupation
Tax Act, and associated local occupation and use taxes
administered by the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
Compliance and Administration Fund as provided in this Section,
beginning on July 1, 2018 the Department shall pay each month
into the Downstate Public Transportation Fund the moneys
required to be so paid under Section 2-3 of the Downstate
Public Transportation Act.
Of the remainder of the moneys received by the Department
pursuant to this Act, 75% shall be paid into the General
Revenue Fund of the State Treasury and 25% shall be reserved in
a special account and used only for the transfer to the Common
School Fund as part of the monthly transfer from the General
Revenue Fund in accordance with Section 8a of the State Finance
Act.
The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.

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Such annual return to the Department shall include a statement
of gross receipts as shown by the taxpayer's last Federal
income tax return. If the total receipts of the business as
reported in the Federal income tax return do not agree with the
gross receipts reported to the Department of Revenue for the
same period, the taxpayer shall attach to his annual return a
schedule showing a reconciliation of the 2 amounts and the
reasons for the difference. The taxpayer's annual return to the
Department shall also disclose the cost of goods sold by the
taxpayer during the year covered by such return, opening and
closing inventories of such goods for such year, cost of goods
used from stock or taken from stock and given away by the
taxpayer during such year, pay roll information of the
taxpayer's business during such year and any additional
reasonable information which the Department deems would be
helpful in determining the accuracy of the monthly, quarterly
or annual returns filed by such taxpayer as hereinbefore
provided for in this Section.
If the annual information return required by this Section
is not filed when and as required, the taxpayer shall be liable
as follows:
(i) Until January 1, 1994, the taxpayer shall be liable
for a penalty equal to 1/6 of 1% of the tax due from such
taxpayer under this Act during the period to be covered by
the annual return for each month or fraction of a month
until such return is filed as required, the penalty to be

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assessed and collected in the same manner as any other
penalty provided for in this Act.
(ii) On and after January 1, 1994, the taxpayer shall
be liable for a penalty as described in Section 3-4 of the
Uniform Penalty and Interest Act.
The chief executive officer, proprietor, owner or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person who
willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and punished
accordingly. The annual return form prescribed by the
Department shall include a warning that the person signing the
return may be liable for perjury.
The foregoing portion of this Section concerning the filing
of an annual information return shall not apply to a serviceman
who is not required to file an income tax return with the
United States Government.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount

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paid out during that month as refunds to taxpayers for
overpayment of liability.
For greater simplicity of administration, it shall be
permissible for manufacturers, importers and wholesalers whose
products are sold by numerous servicemen in Illinois, and who
wish to do so, to assume the responsibility for accounting and
paying to the Department all tax accruing under this Act with
respect to such sales, if the servicemen who are affected do
not make written objection to the Department to this
arrangement.
(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
100-303, eff. 8-24-17; 100-363, eff. 7-1-18; revised
10-31-17.)
Section 45. The Retailers' Occupation Tax Act is amended by
changing Sections 2-5, 2-5.5, 3, and 5j as follows:
(35 ILCS 120/2-5)
Sec. 2-5. Exemptions. Gross receipts from proceeds from the
sale of the following tangible personal property are exempt
from the tax imposed by this Act:
(1) Farm chemicals.
(2) Farm machinery and equipment, both new and used,
including that manufactured on special order, certified by
the purchaser to be used primarily for production
agriculture or State or federal agricultural programs,

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

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the computer-assisted operation of production agriculture
facilities, equipment, and activities such as, but not
limited to, the collection, monitoring, and correlation of
animal and crop data for the purpose of formulating animal
diets and agricultural chemicals. This item (2) is exempt
from the provisions of Section 2-70.
(3) Until July 1, 2003, distillation machinery and
equipment, sold as a unit or kit, assembled or installed by
the retailer, certified by the user to be used only for the
production of ethyl alcohol that will be used for
consumption as motor fuel or as a component of motor fuel
for the personal use of the user, and not subject to sale
or resale.
(4) Until July 1, 2003 and beginning again September 1,
2004 through August 30, 2014, graphic arts machinery and
equipment, including repair and replacement parts, both
new and used, and including that manufactured on special
order or purchased for lease, certified by the purchaser to
be used primarily for graphic arts production. Equipment
includes chemicals or chemicals acting as catalysts but
only if the chemicals or chemicals acting as catalysts
effect a direct and immediate change upon a graphic arts
product. Beginning on July 1, 2017, graphic arts machinery
and equipment is included in the manufacturing and
assembling machinery and equipment exemption under
paragraph (14).

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(5) A motor vehicle that is used for automobile
renting, as defined in the Automobile Renting Occupation
and Use Tax Act. This paragraph is exempt from the
provisions of Section 2-70.
(6) Personal property sold by a teacher-sponsored
student organization affiliated with an elementary or
secondary school located in Illinois.
(7) Until July 1, 2003, proceeds of that portion of the
selling price of a passenger car the sale of which is
subject to the Replacement Vehicle Tax.
(8) Personal property sold to an Illinois county fair
association for use in conducting, operating, or promoting
the county fair.
(9) Personal property sold to a not-for-profit arts or
cultural organization that establishes, by proof required
by the Department by rule, that it has received an
exemption under Section 501(c)(3) of the Internal Revenue
Code and that is organized and operated primarily for the
presentation or support of arts or cultural programming,
activities, or services. These organizations include, but
are not limited to, music and dramatic arts organizations
such as symphony orchestras and theatrical groups, arts and
cultural service organizations, local arts councils,
visual arts organizations, and media arts organizations.
On and after July 1, 2001 (the effective date of Public Act
92-35) this amendatory Act of the 92nd General Assembly,

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however, an entity otherwise eligible for this exemption
shall not make tax-free purchases unless it has an active
identification number issued by the Department.
(10) Personal property sold by a corporation, society,
association, foundation, institution, or organization,
other than a limited liability company, that is organized
and operated as a not-for-profit service enterprise for the
benefit of persons 65 years of age or older if the personal
property was not purchased by the enterprise for the
purpose of resale by the enterprise.
(11) Personal property sold to a governmental body, to
a corporation, society, association, foundation, or
institution organized and operated exclusively for
charitable, religious, or educational purposes, or to a
not-for-profit corporation, society, association,
foundation, institution, or organization that has no
compensated officers or employees and that is organized and
operated primarily for the recreation of persons 55 years
of age or older. A limited liability company may qualify
for the exemption under this paragraph only if the limited
liability company is organized and operated exclusively
for educational purposes. On and after July 1, 1987,
however, no entity otherwise eligible for this exemption
shall make tax-free purchases unless it has an active
identification number issued by the Department.
(12) (Blank).

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(12-5) On and after July 1, 2003 and through June 30,
2004, motor vehicles of the second division with a gross
vehicle weight in excess of 8,000 pounds that are subject
to the commercial distribution fee imposed under Section
3-815.1 of the Illinois Vehicle Code. Beginning on July 1,
2004 and through June 30, 2005, the use in this State of
motor vehicles of the second division: (i) with a gross
vehicle weight rating in excess of 8,000 pounds; (ii) that
are subject to the commercial distribution fee imposed
under Section 3-815.1 of the Illinois Vehicle Code; and
(iii) that are primarily used for commercial purposes.
Through June 30, 2005, this exemption applies to repair and
replacement parts added after the initial purchase of such
a motor vehicle if that motor vehicle is used in a manner
that would qualify for the rolling stock exemption
otherwise provided for in this Act. For purposes of this
paragraph, "used for commercial purposes" means the
transportation of persons or property in furtherance of any
commercial or industrial enterprise whether for-hire or
not.
(13) Proceeds from sales to owners, lessors, or
shippers of tangible personal property that is utilized by
interstate carriers for hire for use as rolling stock
moving in interstate commerce and equipment operated by a
telecommunications provider, licensed as a common carrier
by the Federal Communications Commission, which is

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permanently installed in or affixed to aircraft moving in
interstate commerce.
(14) Machinery and equipment that will be used by the
purchaser, or a lessee of the purchaser, primarily in the
process of manufacturing or assembling tangible personal
property for wholesale or retail sale or lease, whether the
sale or lease is made directly by the manufacturer or by
some other person, whether the materials used in the
process are owned by the manufacturer or some other person,
or whether the sale or lease is made apart from or as an
incident to the seller's engaging in the service occupation
of producing machines, tools, dies, jigs, patterns,
gauges, or other similar items of no commercial value on
special order for a particular purchaser. The exemption
provided by this paragraph (14) does not include machinery
and equipment used in (i) the generation of electricity for
wholesale or retail sale; (ii) the generation or treatment
of natural or artificial gas for wholesale or retail sale
that is delivered to customers through pipes, pipelines, or
mains; or (iii) the treatment of water for wholesale or
retail sale that is delivered to customers through pipes,
pipelines, or mains. The provisions of Public Act 98-583
are declaratory of existing law as to the meaning and scope
of this exemption. Beginning on July 1, 2017, the exemption
provided by this paragraph (14) includes, but is not
limited to, graphic arts machinery and equipment, as

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defined in paragraph (4) of this Section.
(15) Proceeds of mandatory service charges separately
stated on customers' bills for purchase and consumption of
food and beverages, to the extent that the proceeds of the
service charge are in fact turned over as tips or as a
substitute for tips to the employees who participate
directly in preparing, serving, hosting or cleaning up the
food or beverage function with respect to which the service
charge is imposed.
(16) Petroleum products sold to a purchaser if the
seller is prohibited by federal law from charging tax to
the purchaser.
(17) Tangible personal property sold to a common
carrier by rail or motor that receives the physical
possession of the property in Illinois and that transports
the property, or shares with another common carrier in the
transportation of the property, out of Illinois on a
standard uniform bill of lading showing the seller of the
property as the shipper or consignor of the property to a
destination outside Illinois, for use outside Illinois.
(18) Legal tender, currency, medallions, or gold or
silver coinage issued by the State of Illinois, the
government of the United States of America, or the
government of any foreign country, and bullion.
(19) Until July 1, 2003, oil field exploration,
drilling, and production equipment, including (i) rigs and

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

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(22) Until June 30, 2013, fuel and petroleum products
sold to or used by an air carrier, certified by the carrier
to be used for consumption, shipment, or storage in the
conduct of its business as an air common carrier, for a
flight destined for or returning from a location or
locations outside the United States without regard to
previous or subsequent domestic stopovers.
Beginning July 1, 2013, fuel and petroleum products
sold to or used by an air carrier, certified by the carrier
to be used for consumption, shipment, or storage in the
conduct of its business as an air common carrier, for a
flight that (i) is engaged in foreign trade or is engaged
in trade between the United States and any of its
possessions and (ii) transports at least one individual or
package for hire from the city of origination to the city
of final destination on the same aircraft, without regard
to a change in the flight number of that aircraft.
(23) A transaction in which the purchase order is
received by a florist who is located outside Illinois, but
who has a florist located in Illinois deliver the property
to the purchaser or the purchaser's donee in Illinois.
(24) Fuel consumed or used in the operation of ships,
barges, or vessels that are used primarily in or for the
transportation of property or the conveyance of persons for
hire on rivers bordering on this State if the fuel is
delivered by the seller to the purchaser's barge, ship, or

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vessel while it is afloat upon that bordering river.
(25) Except as provided in item (25-5) of this Section,
a motor vehicle sold in this State to a nonresident even
though the motor vehicle is delivered to the nonresident in
this State, if the motor vehicle is not to be titled in
this State, and if a drive-away permit is issued to the
motor vehicle as provided in Section 3-603 of the Illinois
Vehicle Code or if the nonresident purchaser has vehicle
registration plates to transfer to the motor vehicle upon
returning to his or her home state. The issuance of the
drive-away permit or having the out-of-state registration
plates to be transferred is prima facie evidence that the
motor vehicle will not be titled in this State.
(25-5) The exemption under item (25) does not apply if
the state in which the motor vehicle will be titled does
not allow a reciprocal exemption for a motor vehicle sold
and delivered in that state to an Illinois resident but
titled in Illinois. The tax collected under this Act on the
sale of a motor vehicle in this State to a resident of
another state that does not allow a reciprocal exemption
shall be imposed at a rate equal to the state's rate of tax
on taxable property in the state in which the purchaser is
a resident, except that the tax shall not exceed the tax
that would otherwise be imposed under this Act. At the time
of the sale, the purchaser shall execute a statement,
signed under penalty of perjury, of his or her intent to

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title the vehicle in the state in which the purchaser is a
resident within 30 days after the sale and of the fact of
the payment to the State of Illinois of tax in an amount
equivalent to the state's rate of tax on taxable property
in his or her state of residence and shall submit the
statement to the appropriate tax collection agency in his
or her state of residence. In addition, the retailer must
retain a signed copy of the statement in his or her
records. Nothing in this item shall be construed to require
the removal of the vehicle from this state following the
filing of an intent to title the vehicle in the purchaser's
state of residence if the purchaser titles the vehicle in
his or her state of residence within 30 days after the date
of sale. The tax collected under this Act in accordance
with this item (25-5) shall be proportionately distributed
as if the tax were collected at the 6.25% general rate
imposed under this Act.
(25-7) Beginning on July 1, 2007, no tax is imposed
under this Act on the sale of an aircraft, as defined in
Section 3 of the Illinois Aeronautics Act, if all of the
following conditions are met:
(1) the aircraft leaves this State within 15 days
after the later of either the issuance of the final
billing for the sale of the aircraft, or the authorized
approval for return to service, completion of the
maintenance record entry, and completion of the test

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flight and ground test for inspection, as required by
14 C.F.R. 91.407;
(2) the aircraft is not based or registered in this
State after the sale of the aircraft; and
(3) the seller retains in his or her books and
records and provides to the Department a signed and
dated certification from the purchaser, on a form
prescribed by the Department, certifying that the
requirements of this item (25-7) are met. The
certificate must also include the name and address of
the purchaser, the address of the location where the
aircraft is to be titled or registered, the address of
the primary physical location of the aircraft, and
other information that the Department may reasonably
require.
For purposes of this item (25-7):
"Based in this State" means hangared, stored, or
otherwise used, excluding post-sale customizations as
defined in this Section, for 10 or more days in each
12-month period immediately following the date of the sale
of the aircraft.
"Registered in this State" means an aircraft
registered with the Department of Transportation,
Aeronautics Division, or titled or registered with the
Federal Aviation Administration to an address located in
this State.

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

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

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Illinois or bordering Illinois when such repairs are
initiated on facilities located in the declared disaster
area within 6 months after the disaster.
(32) Beginning July 1, 1999, game or game birds sold at
a "game breeding and hunting preserve area" as that term is
used in the Wildlife Code. This paragraph is exempt from
the provisions of Section 2-70.
(33) A motor vehicle, as that term is defined in
Section 1-146 of the Illinois Vehicle Code, that is donated
to a corporation, limited liability company, society,
association, foundation, or institution that is determined
by the Department to be organized and operated exclusively
for educational purposes. For purposes of this exemption,
"a corporation, limited liability company, society,
association, foundation, or institution organized and
operated exclusively for educational purposes" means all
tax-supported public schools, private schools that offer
systematic instruction in useful branches of learning by
methods common to public schools and that compare favorably
in their scope and intensity with the course of study
presented in tax-supported schools, and vocational or
technical schools or institutes organized and operated
exclusively to provide a course of study of not less than 6
weeks duration and designed to prepare individuals to
follow a trade or to pursue a manual, technical,
mechanical, industrial, business, or commercial

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

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provisions of Section 2-70.
(35-5) Beginning August 23, 2001 and through June 30,
2016, food for human consumption that is to be consumed off
the premises where it is sold (other than alcoholic
beverages, soft drinks, and food that has been prepared for
immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances, and
insulin, urine testing materials, syringes, and needles
used by diabetics, for human use, when purchased for use by
a person receiving medical assistance under Article V of
the Illinois Public Aid Code who resides in a licensed
long-term care facility, as defined in the Nursing Home
Care Act, or a licensed facility as defined in the ID/DD
Community Care Act, the MC/DD Act, or the Specialized
Mental Health Rehabilitation Act of 2013.
(36) Beginning August 2, 2001, computers and
communications equipment utilized for any hospital purpose
and equipment used in the diagnosis, analysis, or treatment
of hospital patients sold to a lessor who leases the
equipment, under a lease of one year or longer executed or
in effect at the time of the purchase, to a hospital that
has been issued an active tax exemption identification
number by the Department under Section 1g of this Act. This
paragraph is exempt from the provisions of Section 2-70.
(37) Beginning August 2, 2001, personal property sold
to a lessor who leases the property, under a lease of one

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

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

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protective films. This exemption applies only to the sale
of qualifying tangible personal property to persons who
modify, refurbish, complete, replace, or maintain an
aircraft and who (i) hold an Air Agency Certificate and are
empowered to operate an approved repair station by the
Federal Aviation Administration, (ii) have a Class IV
Rating, and (iii) conduct operations in accordance with
Part 145 of the Federal Aviation Regulations. The exemption
does not include aircraft operated by a commercial air
carrier providing scheduled passenger air service pursuant
to authority issued under Part 121 or Part 129 of the
Federal Aviation Regulations. The changes made to this
paragraph (40) by Public Act 98-534 are declarative of
existing law.
(41) Tangible personal property sold to a
public-facilities corporation, as described in Section
11-65-10 of the Illinois Municipal Code, for purposes of
constructing or furnishing a municipal convention hall,
but only if the legal title to the municipal convention
hall is transferred to the municipality without any further
consideration by or on behalf of the municipality at the
time of the completion of the municipal convention hall or
upon the retirement or redemption of any bonds or other
debt instruments issued by the public-facilities
corporation in connection with the development of the
municipal convention hall. This exemption includes

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existing public-facilities corporations as provided in
Section 11-65-25 of the Illinois Municipal Code. This
paragraph is exempt from the provisions of Section 2-70.
(42) Beginning January 1, 2017, menstrual pads,
tampons, and menstrual cups.
(43) Merchandise that is subject to the Rental Purchase
Agreement Occupation and Use Tax. The purchaser must
certify that the item is purchased to be rented subject to
a rental purchase agreement, as defined in the Rental
Purchase Agreement Act, and provide proof of registration
under the Rental Purchase Agreement Occupation and Use Tax
Act. This paragraph is exempt from the provisions of
Section 2-70.
(44) Tangible personal property transferred to a
purchaser who is exempt from the tax imposed by this Act by
operation of federal law. This paragraph is exempt from the
provisions of Section 2-70.
(Source: P.A. 99-180, eff. 7-29-15; 99-855, eff. 8-19-16;
100-22, eff. 7-6-17; 100-321, eff. 8-24-17; 100-437, eff.
1-1-18; revised 9-26-17.)
(35 ILCS 120/2-5.5)
Sec. 2-5.5. Food and drugs sold by not-for-profit
organizations; exemption. The Department shall not collect the
1% tax imposed under this Act on food for human consumption
that is to be consumed off the premises where it is sold (other

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than alcoholic beverages, soft drinks, and food that has been
prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances, and
insulin, urine testing materials, syringes, and needles used by
diabetics, for human use from any not-for-profit organization,
that sells food in a food distribution program at a price below
the retail cost of the food to purchasers who, as a condition
of participation in the program, are required to perform
community service, located in a county or municipality that
notifies the Department, in writing, that the county or
municipality does not want the tax to be collected from any of
such organizations located in the county or municipality.
(Source: P.A. 88-374.)
(35 ILCS 120/3) (from Ch. 120, par. 442)
(Text of Section before amendment by P.A. 100-363)
Sec. 3. Except as provided in this Section, on or before
the twentieth day of each calendar month, every person engaged
in the business of selling tangible personal property at retail
in this State during the preceding calendar month shall file a
return with the Department, stating:
1. The name of the seller;
2. His residence address and the address of his
principal place of business and the address of the
principal place of business (if that is a different
address) from which he engages in the business of selling

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tangible personal property at retail in this State;
3. Total amount of receipts received by him during the
preceding calendar month or quarter, as the case may be,
from sales of tangible personal property, and from services
furnished, by him during such preceding calendar month or
quarter;
4. Total amount received by him during the preceding
calendar month or quarter on charge and time sales of
tangible personal property, and from services furnished,
by him prior to the month or quarter for which the return
is filed;
5. Deductions allowed by law;
6. Gross receipts which were received by him during the
preceding calendar month or quarter and upon the basis of
which the tax is imposed;
7. The amount of credit provided in Section 2d of this
Act;
8. The amount of tax due;
9. The signature of the taxpayer; and
10. Such other reasonable information as the
Department may require.
On and after January 1, 2018, except for returns for motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State, with respect to
retailers whose annual gross receipts average $20,000 or more,
all returns required to be filed pursuant to this Act shall be

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filed electronically. Retailers who demonstrate that they do
not have access to the Internet or demonstrate hardship in
filing electronically may petition the Department to waive the
electronic filing requirement.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Each return shall be accompanied by the statement of
prepaid tax issued pursuant to Section 2e for which credit is
claimed.
Prior to October 1, 2003, and on and after September 1,
2004 a retailer may accept a Manufacturer's Purchase Credit
certification from a purchaser in satisfaction of Use Tax as
provided in Section 3-85 of the Use Tax Act if the purchaser
provides the appropriate documentation as required by Section
3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
certification, accepted by a retailer prior to October 1, 2003
and on and after September 1, 2004 as provided in Section 3-85
of the Use Tax Act, may be used by that retailer to satisfy
Retailers' Occupation Tax liability in the amount claimed in
the certification, not to exceed 6.25% of the receipts subject
to tax from a qualifying purchase. A Manufacturer's Purchase
Credit reported on any original or amended return filed under
this Act after October 20, 2003 for reporting periods prior to
September 1, 2004 shall be disallowed. Manufacturer's

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Purchaser Credit reported on annual returns due on or after
January 1, 2005 will be disallowed for periods prior to
September 1, 2004. No Manufacturer's Purchase Credit may be
used after September 30, 2003 through August 31, 2004 to
satisfy any tax liability imposed under this Act, including any
audit liability.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in the business of selling tangible
personal property at retail in this State;
3. The total amount of taxable receipts received by him
during the preceding calendar month from sales of tangible
personal property by him during such preceding calendar
month, including receipts from charge and time sales, but
less all deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due; and
6. Such other reasonable information as the Department

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may require.
Beginning on October 1, 2003, any person who is not a
licensed distributor, importing distributor, or manufacturer,
as defined in the Liquor Control Act of 1934, but is engaged in
the business of selling, at retail, alcoholic liquor shall file
a statement with the Department of Revenue, in a format and at
a time prescribed by the Department, showing the total amount
paid for alcoholic liquor purchased during the preceding month
and such other information as is reasonably required by the
Department. The Department may adopt rules to require that this
statement be filed in an electronic or telephonic format. Such
rules may provide for exceptions from the filing requirements
of this paragraph. For the purposes of this paragraph, the term
"alcoholic liquor" shall have the meaning prescribed in the
Liquor Control Act of 1934.
Beginning on October 1, 2003, every distributor, importing
distributor, and manufacturer of alcoholic liquor as defined in
the Liquor Control Act of 1934, shall file a statement with the
Department of Revenue, no later than the 10th day of the month
for the preceding month during which transactions occurred, by
electronic means, showing the total amount of gross receipts
from the sale of alcoholic liquor sold or distributed during
the preceding month to purchasers; identifying the purchaser to
whom it was sold or distributed; the purchaser's tax
registration number; and such other information reasonably
required by the Department. A distributor, importing

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distributor, or manufacturer of alcoholic liquor must
personally deliver, mail, or provide by electronic means to
each retailer listed on the monthly statement a report
containing a cumulative total of that distributor's, importing
distributor's, or manufacturer's total sales of alcoholic
liquor to that retailer no later than the 10th day of the month
for the preceding month during which the transaction occurred.
The distributor, importing distributor, or manufacturer shall
notify the retailer as to the method by which the distributor,
importing distributor, or manufacturer will provide the sales
information. If the retailer is unable to receive the sales
information by electronic means, the distributor, importing
distributor, or manufacturer shall furnish the sales
information by personal delivery or by mail. For purposes of
this paragraph, the term "electronic means" includes, but is
not limited to, the use of a secure Internet website, e-mail,
or facsimile.
If a total amount of less than $1 is payable, refundable or
creditable, such amount shall be disregarded if it is less than
50 cents and shall be increased to $1 if it is 50 cents or more.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall make
all payments required by rules of the Department by electronic

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funds transfer. Beginning October 1, 1995, a taxpayer who has
an average monthly tax liability of $50,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. The term "annual tax liability" shall be the
sum of the taxpayer's liabilities under this Act, and under all
other State and local occupation and use tax laws administered
by the Department, for the immediately preceding calendar year.
The term "average monthly tax liability" shall be the sum of
the taxpayer's liabilities under this Act, and under all other
State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12. Beginning on October 1, 2002, a taxpayer who has
a tax liability in the amount set forth in subsection (b) of
Section 2505-210 of the Department of Revenue Law shall make
all payments required by rules of the Department by electronic
funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make payments
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer

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with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those payments
in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
Any amount which is required to be shown or reported on any
return or other document under this Act shall, if such amount
is not a whole-dollar amount, be increased to the nearest
whole-dollar amount in any case where the fractional part of a
dollar is 50 cents or more, and decreased to the nearest
whole-dollar amount where the fractional part of a dollar is
less than 50 cents.
If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February and March of a given year
being due by April 20 of such year; with the return for April,
May and June of a given year being due by July 20 of such year;
with the return for July, August and September of a given year
being due by October 20 of such year, and with the return for
October, November and December of a given year being due by
January 20 of the following year.

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If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
liability with the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January 20
of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
Notwithstanding any other provision in this Act concerning
the time within which a retailer may file his return, in the
case of any retailer who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such retailer shall file a final return under this Act with the
Department not more than one month after discontinuing such
business.
Where the same person has more than one business registered
with the Department under separate registrations under this
Act, such person may not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, except as otherwise provided in this
Section, every retailer selling this kind of tangible personal
property shall file, with the Department, upon a form to be

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prescribed and supplied by the Department, a separate return
for each such item of tangible personal property which the
retailer sells, except that if, in the same transaction, (i) a
retailer of aircraft, watercraft, motor vehicles or trailers
transfers more than one aircraft, watercraft, motor vehicle or
trailer to another aircraft, watercraft, motor vehicle
retailer or trailer retailer for the purpose of resale or (ii)
a retailer of aircraft, watercraft, motor vehicles, or trailers
transfers more than one aircraft, watercraft, motor vehicle, or
trailer to a purchaser for use as a qualifying rolling stock as
provided in Section 2-5 of this Act, then that seller may
report the transfer of all aircraft, watercraft, motor vehicles
or trailers involved in that transaction to the Department on
the same uniform invoice-transaction reporting return form.
For purposes of this Section, "watercraft" means a Class 2,
Class 3, or Class 4 watercraft as defined in Section 3-2 of the
Boat Registration and Safety Act, a personal watercraft, or any
boat equipped with an inboard motor.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, every person who is engaged in the
business of leasing or renting such items and who, in
connection with such business, sells any such item to a
retailer for the purpose of resale is, notwithstanding any
other provision of this Section to the contrary, authorized to
meet the return-filing requirement of this Act by reporting the

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transfer of all the aircraft, watercraft, motor vehicles, or
trailers transferred for resale during a month to the
Department on the same uniform invoice-transaction reporting
return form on or before the 20th day of the month following
the month in which the transfer takes place. Notwithstanding
any other provision of this Act to the contrary, all returns
filed under this paragraph must be filed by electronic means in
the manner and form as required by the Department.
Any retailer who sells only motor vehicles, watercraft,
aircraft, or trailers that are required to be registered with
an agency of this State, so that all retailers' occupation tax
liability is required to be reported, and is reported, on such
transaction reporting returns and who is not otherwise required
to file monthly or quarterly returns, need not file monthly or
quarterly returns. However, those retailers shall be required
to file returns on an annual basis.
The transaction reporting return, in the case of motor
vehicles or trailers that are required to be registered with an
agency of this State, shall be the same document as the Uniform
Invoice referred to in Section 5-402 of The Illinois Vehicle
Code and must show the name and address of the seller; the name
and address of the purchaser; the amount of the selling price
including the amount allowed by the retailer for traded-in
property, if any; the amount allowed by the retailer for the
traded-in tangible personal property, if any, to the extent to
which Section 1 of this Act allows an exemption for the value

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of traded-in property; the balance payable after deducting such
trade-in allowance from the total selling price; the amount of
tax due from the retailer with respect to such transaction; the
amount of tax collected from the purchaser by the retailer on
such transaction (or satisfactory evidence that such tax is not
due in that particular instance, if that is claimed to be the
fact); the place and date of the sale; a sufficient
identification of the property sold; such other information as
is required in Section 5-402 of The Illinois Vehicle Code, and
such other information as the Department may reasonably
require.
The transaction reporting return in the case of watercraft
or aircraft must show the name and address of the seller; the
name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 1 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling price;
the amount of tax due from the retailer with respect to such
transaction; the amount of tax collected from the purchaser by
the retailer on such transaction (or satisfactory evidence that
such tax is not due in that particular instance, if that is
claimed to be the fact); the place and date of the sale, a
sufficient identification of the property sold, and such other

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information as the Department may reasonably require.
Such transaction reporting return shall be filed not later
than 20 days after the day of delivery of the item that is
being sold, but may be filed by the retailer at any time sooner
than that if he chooses to do so. The transaction reporting
return and tax remittance or proof of exemption from the
Illinois use tax may be transmitted to the Department by way of
the State agency with which, or State officer with whom the
tangible personal property must be titled or registered (if
titling or registration is required) if the Department and such
agency or State officer determine that this procedure will
expedite the processing of applications for title or
registration.
With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the
Department shall issue, in the purchaser's name, a use tax
receipt (or a certificate of exemption if the Department is
satisfied that the particular sale is tax exempt) which such
purchaser may submit to the agency with which, or State officer
with whom, he must title or register the tangible personal
property that is involved (if titling or registration is
required) in support of such purchaser's application for an
Illinois certificate or other evidence of title or registration
to such tangible personal property.

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No retailer's failure or refusal to remit tax under this
Act precludes a user, who has paid the proper tax to the
retailer, from obtaining his certificate of title or other
evidence of title or registration (if titling or registration
is required) upon satisfying the Department that such user has
paid the proper tax (if tax is due) to the retailer. The
Department shall adopt appropriate rules to carry out the
mandate of this paragraph.
If the user who would otherwise pay tax to the retailer
wants the transaction reporting return filed and the payment of
the tax or proof of exemption made to the Department before the
retailer is willing to take these actions and such user has not
paid the tax to the retailer, such user may certify to the fact
of such delay by the retailer and may (upon the Department
being satisfied of the truth of such certification) transmit
the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to
the Department and obtain his tax receipt or exemption
determination, in which event the transaction reporting return
and tax remittance (if a tax payment was required) shall be
credited by the Department to the proper retailer's account
with the Department, but without the 2.1% or 1.75% discount
provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the
same amount and in the same form in which it would be remitted
if the tax had been remitted to the Department by the retailer.

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Refunds made by the seller during the preceding return
period to purchasers, on account of tangible personal property
returned to the seller, shall be allowed as a deduction under
subdivision 5 of his monthly or quarterly return, as the case
may be, in case the seller had theretofore included the
receipts from the sale of such tangible personal property in a
return filed by him and had paid the tax imposed by this Act
with respect to such receipts.
Where the seller is a corporation, the return filed on
behalf of such corporation shall be signed by the president,
vice-president, secretary or treasurer or by the properly
accredited agent of such corporation.
Where the seller is a limited liability company, the return
filed on behalf of the limited liability company shall be
signed by a manager, member, or properly accredited agent of
the limited liability company.
Except as provided in this Section, the retailer filing the
return under this Section shall, at the time of filing such
return, pay to the Department the amount of tax imposed by this
Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
on and after January 1, 1990, or $5 per calendar year,
whichever is greater, which is allowed to reimburse the
retailer for the expenses incurred in keeping records,
preparing and filing returns, remitting the tax and supplying
data to the Department on request. Any prepayment made pursuant
to Section 2d of this Act shall be included in the amount on

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which such 2.1% or 1.75% discount is computed. In the case of
retailers who report and pay the tax on a transaction by
transaction basis, as provided in this Section, such discount
shall be taken with each such tax remittance instead of when
such retailer files his periodic return. The discount allowed
under this Section is allowed only for returns that are filed
in the manner required by this Act. The Department may disallow
the discount for retailers whose certificate of registration is
revoked at the time the return is filed, but only if the
Department's decision to revoke the certificate of
registration has become final.
Before October 1, 2000, if the taxpayer's average monthly
tax liability to the Department under this Act, the Use Tax
Act, the Service Occupation Tax Act, and the Service Use Tax
Act, excluding any liability for prepaid sales tax to be
remitted in accordance with Section 2d of this Act, was $10,000
or more during the preceding 4 complete calendar quarters, he
shall file a return with the Department each month by the 20th
day of the month next following the month during which such tax
liability is incurred and shall make payments to the Department
on or before the 7th, 15th, 22nd and last day of the month
during which such liability is incurred. On and after October
1, 2000, if the taxpayer's average monthly tax liability to the
Department under this Act, the Use Tax Act, the Service
Occupation Tax Act, and the Service Use Tax Act, excluding any
liability for prepaid sales tax to be remitted in accordance

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with Section 2d of this Act, was $20,000 or more during the
preceding 4 complete calendar quarters, he shall file a return
with the Department each month by the 20th day of the month
next following the month during which such tax liability is
incurred and shall make payment to the Department on or before
the 7th, 15th, 22nd and last day of the month during which such
liability is incurred. If the month during which such tax
liability is incurred began prior to January 1, 1985, each
payment shall be in an amount equal to 1/4 of the taxpayer's
actual liability for the month or an amount set by the
Department not to exceed 1/4 of the average monthly liability
of the taxpayer to the Department for the preceding 4 complete
calendar quarters (excluding the month of highest liability and
the month of lowest liability in such 4 quarter period). If the
month during which such tax liability is incurred begins on or
after January 1, 1985 and prior to January 1, 1987, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 27.5% of the taxpayer's
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1987 and prior to January 1, 1988, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 26.25% of the taxpayer's
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1988, and prior to January 1, 1989, or

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begins on or after January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year. If the month during which
such tax liability is incurred begins on or after January 1,
1989, and prior to January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year or 100% of the taxpayer's
actual liability for the quarter monthly reporting period. The
amount of such quarter monthly payments shall be credited
against the final tax liability of the taxpayer's return for
that month. Before October 1, 2000, once applicable, the
requirement of the making of quarter monthly payments to the
Department by taxpayers having an average monthly tax liability
of $10,000 or more as determined in the manner provided above
shall continue until such taxpayer's average monthly liability
to the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the
month of lowest liability) is less than $9,000, or until such
taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $10,000. However, if a
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the

SB3445 - 243 - LRB100 20331 HLH 35618 b
reasonably foreseeable future will fall below the $10,000
threshold stated above, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status. On
and after October 1, 2000, once applicable, the requirement of
the making of quarter monthly payments to the Department by
taxpayers having an average monthly tax liability of $20,000 or
more as determined in the manner provided above shall continue
until such taxpayer's average monthly liability to the
Department during the preceding 4 complete calendar quarters
(excluding the month of highest liability and the month of
lowest liability) is less than $19,000 or until such taxpayer's
average monthly liability to the Department as computed for
each calendar quarter of the 4 preceding complete calendar
quarter period is less than $20,000. However, if a taxpayer can
show the Department that a substantial change in the taxpayer's
business has occurred which causes the taxpayer to anticipate
that his average monthly tax liability for the reasonably
foreseeable future will fall below the $20,000 threshold stated
above, then such taxpayer may petition the Department for a
change in such taxpayer's reporting status. The Department
shall change such taxpayer's reporting status unless it finds
that such change is seasonal in nature and not likely to be
long term. If any such quarter monthly payment is not paid at
the time or in the amount required by this Section, then the
taxpayer shall be liable for penalties and interest on the
difference between the minimum amount due as a payment and the

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amount of such quarter monthly payment actually and timely
paid, except insofar as the taxpayer has previously made
payments for that month to the Department in excess of the
minimum payments previously due as provided in this Section.
The Department shall make reasonable rules and regulations to
govern the quarter monthly payment amount and quarter monthly
payment dates for taxpayers who file on other than a calendar
monthly basis.
The provisions of this paragraph apply before October 1,
2001. Without regard to whether a taxpayer is required to make
quarter monthly payments as specified above, any taxpayer who
is required by Section 2d of this Act to collect and remit
prepaid taxes and has collected prepaid taxes which average in
excess of $25,000 per month during the preceding 2 complete
calendar quarters, shall file a return with the Department as
required by Section 2f and shall make payments to the
Department on or before the 7th, 15th, 22nd and last day of the
month during which such liability is incurred. If the month
during which such tax liability is incurred began prior to
September 1, 1985 (the effective date of Public Act 84-221),
each payment shall be in an amount not less than 22.5% of the
taxpayer's actual liability under Section 2d. If the month
during which such tax liability is incurred begins on or after
January 1, 1986, each payment shall be in an amount equal to
22.5% of the taxpayer's actual liability for the month or 27.5%
of the taxpayer's liability for the same calendar month of the

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

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Department on or before the 7th, 15th, 22nd and last day of the
month during which the liability is incurred. Each payment
shall be in an amount equal to 22.5% of the taxpayer's actual
liability for the month or 25% of the taxpayer's liability for
the same calendar month of the preceding year. The amount of
the quarter monthly payments shall be credited against the
final tax liability of the taxpayer's return for that month
filed under this Section or Section 2f, as the case may be.
Once applicable, the requirement of the making of quarter
monthly payments to the Department pursuant to this paragraph
shall continue until the taxpayer's average monthly prepaid tax
collections during the preceding 4 complete calendar quarters
(excluding the month of highest liability and the month of
lowest liability) is less than $19,000 or until such taxpayer's
average monthly liability to the Department as computed for
each calendar quarter of the 4 preceding complete calendar
quarters is less than $20,000. If any such quarter monthly
payment is not paid at the time or in the amount required, the
taxpayer shall be liable for penalties and interest on such
difference, except insofar as the taxpayer has previously made
payments for that month in excess of the minimum payments
previously due.
If any payment provided for in this Section exceeds the
taxpayer's liabilities under this Act, the Use Tax Act, the
Service Occupation Tax Act and the Service Use Tax Act, as
shown on an original monthly return, the Department shall, if

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requested by the taxpayer, issue to the taxpayer a credit
memorandum no later than 30 days after the date of payment. The
credit evidenced by such credit memorandum may be assigned by
the taxpayer to a similar taxpayer under this Act, the Use Tax
Act, the Service Occupation Tax Act or the Service Use Tax Act,
in accordance with reasonable rules and regulations to be
prescribed by the Department. If no such request is made, the
taxpayer may credit such excess payment against tax liability
subsequently to be remitted to the Department under this Act,
the Use Tax Act, the Service Occupation Tax Act or the Service
Use Tax Act, in accordance with reasonable rules and
regulations prescribed by the Department. If the Department
subsequently determined that all or any part of the credit
taken was not actually due to the taxpayer, the taxpayer's 2.1%
and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
of the difference between the credit taken and that actually
due, and that taxpayer shall be liable for penalties and
interest on such difference.
If a retailer of motor fuel is entitled to a credit under
Section 2d of this Act which exceeds the taxpayer's liability
to the Department under this Act for the month which the
taxpayer is filing a return, the Department shall issue the
taxpayer a credit memorandum for the excess.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund, a special fund in the
State treasury which is hereby created, the net revenue

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realized for the preceding month from the 1% tax imposed under
this Act on sales of food for human consumption which is to be
consumed off the premises where it is sold (other than
alcoholic beverages, soft drinks and food which has been
prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances, products
classified as Class III medical devices by the United States
Food and Drug Administration that are used for cancer treatment
pursuant to a prescription, as well as any accessories and
components related to those devices, and insulin, urine testing
materials, syringes and needles used by diabetics.
Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund, a special
fund in the State treasury which is hereby created, 4% of the
net revenue realized for the preceding month from the 6.25%
general rate.
Beginning August 1, 2000, each month the Department shall
pay into the County and Mass Transit District Fund 20% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol. Beginning
September 1, 2010, each month the Department shall pay into the
County and Mass Transit District Fund 20% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of sales tax holiday items.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the net revenue

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realized for the preceding month from the 6.25% general rate on
the selling price of tangible personal property.
Beginning August 1, 2000, each month the Department shall
pay into the Local Government Tax Fund 80% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of motor fuel and gasohol. Beginning September 1,
2010, each month the Department shall pay into the Local
Government Tax Fund 80% of the net revenue realized for the
preceding month from the 1.25% rate on the selling price of
sales tax holiday items.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2011, each month the Department shall pay
into the Clean Air Act Permit Fund 80% of the net revenue
realized for the preceding month from the 6.25% general rate on
the selling price of sorbents used in Illinois in the process
of sorbent injection as used to comply with the Environmental
Protection Act or the federal Clean Air Act, but the total
payment into the Clean Air Act Permit Fund under this Act and
the Use Tax Act shall not exceed $2,000,000 in any fiscal year.
Beginning July 1, 2013, each month the Department shall pay

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into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service Use Tax
Act, and the Service Occupation Tax Act an amount equal to the
average monthly deficit in the Underground Storage Tank Fund
during the prior year, as certified annually by the Illinois
Environmental Protection Agency, but the total payment into the
Underground Storage Tank Fund under this Act, the Use Tax Act,
the Service Use Tax Act, and the Service Occupation Tax Act
shall not exceed $18,000,000 in any State fiscal year. As used
in this paragraph, the "average monthly deficit" shall be equal
to the difference between the average monthly claims for
payment by the fund and the average monthly revenues deposited
into the fund, excluding payments made pursuant to this
paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, the Service
Use Tax Act, the Service Occupation Tax Act, and this Act, each
month the Department shall deposit $500,000 into the State
Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required

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to be paid into the Build Illinois Fund pursuant to this Act,
Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
Act, and Section 9 of the Service Occupation Tax Act, such Acts
being hereinafter called the "Tax Acts" and such aggregate of
2.2% or 3.8%, as the case may be, of moneys being hereinafter
called the "Tax Act Amount", and (2) the amount transferred to
the Build Illinois Fund from the State and Local Sales Tax
Reform Fund shall be less than the Annual Specified Amount (as
hereinafter defined), an amount equal to the difference shall
be immediately paid into the Build Illinois Fund from other
moneys received by the Department pursuant to the Tax Acts; the
"Annual Specified Amount" means the amounts specified below for
fiscal years 1986 through 1993:
Fiscal Year Annual Specified Amount
1986 $54,800,000
1987 $76,650,000
1988 $80,480,000
1989 $88,510,000
1990 $115,330,000
1991 $145,470,000
1992 $182,730,000
1993 $206,520,000;
and means the Certified Annual Debt Service Requirement (as
defined in Section 13 of the Build Illinois Bond Act) or the
Tax Act Amount, whichever is greater, for fiscal year 1994 and
each fiscal year thereafter; and further provided, that if on

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

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month in which Bonds are outstanding pursuant to the Build
Illinois Bond Act, the aggregate of moneys deposited in the
Build Illinois Bond Account in the Build Illinois Fund in such
month shall be less than the amount required to be transferred
in such month from the Build Illinois Bond Account to the Build
Illinois Bond Retirement and Interest Fund pursuant to Section
13 of the Build Illinois Bond Act, an amount equal to such
deficiency shall be immediately paid from other moneys received
by the Department pursuant to the Tax Acts to the Build
Illinois Fund; provided, however, that any amounts paid to the
Build Illinois Fund in any fiscal year pursuant to this
sentence shall be deemed to constitute payments pursuant to
clause (b) of the first sentence of this paragraph and shall
reduce the amount otherwise payable for such fiscal year
pursuant to that clause (b). The moneys received by the
Department pursuant to this Act and required to be deposited
into the Build Illinois Fund are subject to the pledge, claim
and charge set forth in Section 12 of the Build Illinois Bond
Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of sums designated as "Total Deposit", shall be

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deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000

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2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 246,000,000
2022 260,000,000
2023 275,000,000
2024 275,000,000
2025 275,000,000
2026 279,000,000
2027 292,000,000
2028 307,000,000
2029 322,000,000
2030 338,000,000
2031 350,000,000
2032 350,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the

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Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total Deposit",
has been deposited.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois Tax
Increment Fund 0.27% of 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the

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preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy
Infrastructure Fund 80% of the net revenue realized from the
6.25% general rate on the selling price of Illinois-mined coal
that was sold to an eligible business. For purposes of this
paragraph, the term "eligible business" means a new electric
generating facility certified pursuant to Section 605-332 of
the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
Subject to payment of amounts into the Build Illinois Fund,
the McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, and the Energy Infrastructure Fund pursuant to
the preceding paragraphs or in any amendments to this Section
hereafter enacted, beginning on the first day of the first
calendar month to occur on or after August 26, 2014 (the
effective date of Public Act 98-1098), each month, from the
collections made under Section 9 of the Use Tax Act, Section 9
of the Service Use Tax Act, Section 9 of the Service Occupation
Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
the Department shall pay into the Tax Compliance and
Administration Fund, to be used, subject to appropriation, to
fund additional auditors and compliance personnel at the
Department of Revenue, an amount equal to 1/12 of 5% of 80% of
the cash receipts collected during the preceding fiscal year by

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the Audit Bureau of the Department under the Use Tax Act, the
Service Use Tax Act, the Service Occupation Tax Act, the
Retailers' Occupation Tax Act, and associated local occupation
and use taxes administered by the Department.
Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the State
Treasury and 25% shall be reserved in a special account and
used only for the transfer to the Common School Fund as part of
the monthly transfer from the General Revenue Fund in
accordance with Section 8a of the State Finance Act.
The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.
Such annual return to the Department shall include a statement
of gross receipts as shown by the retailer's last Federal
income tax return. If the total receipts of the business as
reported in the Federal income tax return do not agree with the
gross receipts reported to the Department of Revenue for the
same period, the retailer shall attach to his annual return a
schedule showing a reconciliation of the 2 amounts and the
reasons for the difference. The retailer's annual return to the
Department shall also disclose the cost of goods sold by the
retailer during the year covered by such return, opening and
closing inventories of such goods for such year, costs of goods

SB3445 - 259 - LRB100 20331 HLH 35618 b
used from stock or taken from stock and given away by the
retailer during such year, payroll information of the
retailer's business during such year and any additional
reasonable information which the Department deems would be
helpful in determining the accuracy of the monthly, quarterly
or annual returns filed by such retailer as provided for in
this Section.
If the annual information return required by this Section
is not filed when and as required, the taxpayer shall be liable
as follows:
(i) Until January 1, 1994, the taxpayer shall be liable
for a penalty equal to 1/6 of 1% of the tax due from such
taxpayer under this Act during the period to be covered by
the annual return for each month or fraction of a month
until such return is filed as required, the penalty to be
assessed and collected in the same manner as any other
penalty provided for in this Act.
(ii) On and after January 1, 1994, the taxpayer shall
be liable for a penalty as described in Section 3-4 of the
Uniform Penalty and Interest Act.
The chief executive officer, proprietor, owner or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person who
willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and punished
accordingly. The annual return form prescribed by the

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Department shall include a warning that the person signing the
return may be liable for perjury.
The provisions of this Section concerning the filing of an
annual information return do not apply to a retailer who is not
required to file an income tax return with the United States
Government.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to such
sales, if the retailers who are affected do not make written
objection to the Department to this arrangement.
Any person who promotes, organizes, provides retail
selling space for concessionaires or other types of sellers at

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the Illinois State Fair, DuQuoin State Fair, county fairs,
local fairs, art shows, flea markets and similar exhibitions or
events, including any transient merchant as defined by Section
2 of the Transient Merchant Act of 1987, is required to file a
report with the Department providing the name of the merchant's
business, the name of the person or persons engaged in
merchant's business, the permanent address and Illinois
Retailers Occupation Tax Registration Number of the merchant,
the dates and location of the event and other reasonable
information that the Department may require. The report must be
filed not later than the 20th day of the month next following
the month during which the event with retail sales was held.
Any person who fails to file a report required by this Section
commits a business offense and is subject to a fine not to
exceed $250.
Any person engaged in the business of selling tangible
personal property at retail as a concessionaire or other type
of seller at the Illinois State Fair, county fairs, art shows,
flea markets and similar exhibitions or events, or any
transient merchants, as defined by Section 2 of the Transient
Merchant Act of 1987, may be required to make a daily report of
the amount of such sales to the Department and to make a daily
payment of the full amount of tax due. The Department shall
impose this requirement when it finds that there is a
significant risk of loss of revenue to the State at such an
exhibition or event. Such a finding shall be based on evidence

SB3445 - 262 - LRB100 20331 HLH 35618 b
that a substantial number of concessionaires or other sellers
who are not residents of Illinois will be engaging in the
business of selling tangible personal property at retail at the
exhibition or event, or other evidence of a significant risk of
loss of revenue to the State. The Department shall notify
concessionaires and other sellers affected by the imposition of
this requirement. In the absence of notification by the
Department, the concessionaires and other sellers shall file
their returns as otherwise required in this Section.
(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
99-933, eff. 1-27-17; 100-303, eff. 8-24-17.)
(Text of Section after amendment by P.A. 100-363)
Sec. 3. Except as provided in this Section, on or before
the twentieth day of each calendar month, every person engaged
in the business of selling tangible personal property at retail
in this State during the preceding calendar month shall file a
return with the Department, stating:
1. The name of the seller;
2. His residence address and the address of his
principal place of business and the address of the
principal place of business (if that is a different
address) from which he engages in the business of selling
tangible personal property at retail in this State;
3. Total amount of receipts received by him during the
preceding calendar month or quarter, as the case may be,

SB3445 - 263 - LRB100 20331 HLH 35618 b
from sales of tangible personal property, and from services
furnished, by him during such preceding calendar month or
quarter;
4. Total amount received by him during the preceding
calendar month or quarter on charge and time sales of
tangible personal property, and from services furnished,
by him prior to the month or quarter for which the return
is filed;
5. Deductions allowed by law;
6. Gross receipts which were received by him during the
preceding calendar month or quarter and upon the basis of
which the tax is imposed;
7. The amount of credit provided in Section 2d of this
Act;
8. The amount of tax due;
9. The signature of the taxpayer; and
10. Such other reasonable information as the
Department may require.
On and after January 1, 2018, except for returns for motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State, with respect to
retailers whose annual gross receipts average $20,000 or more,
all returns required to be filed pursuant to this Act shall be
filed electronically. Retailers who demonstrate that they do
not have access to the Internet or demonstrate hardship in
filing electronically may petition the Department to waive the

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electronic filing requirement.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Each return shall be accompanied by the statement of
prepaid tax issued pursuant to Section 2e for which credit is
claimed.
Prior to October 1, 2003, and on and after September 1,
2004 a retailer may accept a Manufacturer's Purchase Credit
certification from a purchaser in satisfaction of Use Tax as
provided in Section 3-85 of the Use Tax Act if the purchaser
provides the appropriate documentation as required by Section
3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
certification, accepted by a retailer prior to October 1, 2003
and on and after September 1, 2004 as provided in Section 3-85
of the Use Tax Act, may be used by that retailer to satisfy
Retailers' Occupation Tax liability in the amount claimed in
the certification, not to exceed 6.25% of the receipts subject
to tax from a qualifying purchase. A Manufacturer's Purchase
Credit reported on any original or amended return filed under
this Act after October 20, 2003 for reporting periods prior to
September 1, 2004 shall be disallowed. Manufacturer's
Purchaser Credit reported on annual returns due on or after
January 1, 2005 will be disallowed for periods prior to
September 1, 2004. No Manufacturer's Purchase Credit may be

SB3445 - 265 - LRB100 20331 HLH 35618 b
used after September 30, 2003 through August 31, 2004 to
satisfy any tax liability imposed under this Act, including any
audit liability.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first two months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in the business of selling tangible
personal property at retail in this State;
3. The total amount of taxable receipts received by him
during the preceding calendar month from sales of tangible
personal property by him during such preceding calendar
month, including receipts from charge and time sales, but
less all deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due; and
6. Such other reasonable information as the Department
may require.
Beginning on October 1, 2003, any person who is not a
licensed distributor, importing distributor, or manufacturer,

SB3445 - 266 - LRB100 20331 HLH 35618 b
as defined in the Liquor Control Act of 1934, but is engaged in
the business of selling, at retail, alcoholic liquor shall file
a statement with the Department of Revenue, in a format and at
a time prescribed by the Department, showing the total amount
paid for alcoholic liquor purchased during the preceding month
and such other information as is reasonably required by the
Department. The Department may adopt rules to require that this
statement be filed in an electronic or telephonic format. Such
rules may provide for exceptions from the filing requirements
of this paragraph. For the purposes of this paragraph, the term
"alcoholic liquor" shall have the meaning prescribed in the
Liquor Control Act of 1934.
Beginning on October 1, 2003, every distributor, importing
distributor, and manufacturer of alcoholic liquor as defined in
the Liquor Control Act of 1934, shall file a statement with the
Department of Revenue, no later than the 10th day of the month
for the preceding month during which transactions occurred, by
electronic means, showing the total amount of gross receipts
from the sale of alcoholic liquor sold or distributed during
the preceding month to purchasers; identifying the purchaser to
whom it was sold or distributed; the purchaser's tax
registration number; and such other information reasonably
required by the Department. A distributor, importing
distributor, or manufacturer of alcoholic liquor must
personally deliver, mail, or provide by electronic means to
each retailer listed on the monthly statement a report

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containing a cumulative total of that distributor's, importing
distributor's, or manufacturer's total sales of alcoholic
liquor to that retailer no later than the 10th day of the month
for the preceding month during which the transaction occurred.
The distributor, importing distributor, or manufacturer shall
notify the retailer as to the method by which the distributor,
importing distributor, or manufacturer will provide the sales
information. If the retailer is unable to receive the sales
information by electronic means, the distributor, importing
distributor, or manufacturer shall furnish the sales
information by personal delivery or by mail. For purposes of
this paragraph, the term "electronic means" includes, but is
not limited to, the use of a secure Internet website, e-mail,
or facsimile.
If a total amount of less than $1 is payable, refundable or
creditable, such amount shall be disregarded if it is less than
50 cents and shall be increased to $1 if it is 50 cents or more.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1995, a taxpayer who has
an average monthly tax liability of $50,000 or more shall make
all payments required by rules of the Department by electronic

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funds transfer. Beginning October 1, 2000, a taxpayer who has
an annual tax liability of $200,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. The term "annual tax liability" shall be the
sum of the taxpayer's liabilities under this Act, and under all
other State and local occupation and use tax laws administered
by the Department, for the immediately preceding calendar year.
The term "average monthly tax liability" shall be the sum of
the taxpayer's liabilities under this Act, and under all other
State and local occupation and use tax laws administered by the
Department, for the immediately preceding calendar year
divided by 12. Beginning on October 1, 2002, a taxpayer who has
a tax liability in the amount set forth in subsection (b) of
Section 2505-210 of the Department of Revenue Law shall make
all payments required by rules of the Department by electronic
funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make payments
by electronic funds transfer. All taxpayers required to make
payments by electronic funds transfer shall make those payments
for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make

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payments by electronic funds transfer shall make those payments
in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
Any amount which is required to be shown or reported on any
return or other document under this Act shall, if such amount
is not a whole-dollar amount, be increased to the nearest
whole-dollar amount in any case where the fractional part of a
dollar is 50 cents or more, and decreased to the nearest
whole-dollar amount where the fractional part of a dollar is
less than 50 cents.
If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February and March of a given year
being due by April 20 of such year; with the return for April,
May and June of a given year being due by July 20 of such year;
with the return for July, August and September of a given year
being due by October 20 of such year, and with the return for
October, November and December of a given year being due by
January 20 of the following year.
If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
liability with the Department does not exceed $50, the

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Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January 20
of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
Notwithstanding any other provision in this Act concerning
the time within which a retailer may file his return, in the
case of any retailer who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such retailer shall file a final return under this Act with the
Department not more than one month after discontinuing such
business.
Where the same person has more than one business registered
with the Department under separate registrations under this
Act, such person may not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, every retailer selling this kind of
tangible personal property shall file, with the Department,
upon a form to be prescribed and supplied by the Department, a
separate return for each such item of tangible personal
property which the retailer sells, except that if, in the same
transaction, (i) a retailer of aircraft, watercraft, motor

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vehicles or trailers transfers more than one aircraft,
watercraft, motor vehicle or trailer to another aircraft,
watercraft, motor vehicle retailer or trailer retailer for the
purpose of resale or (ii) a retailer of aircraft, watercraft,
motor vehicles, or trailers transfers more than one aircraft,
watercraft, motor vehicle, or trailer to a purchaser for use as
a qualifying rolling stock as provided in Section 2-5 of this
Act, then that seller may report the transfer of all aircraft,
watercraft, motor vehicles or trailers involved in that
transaction to the Department on the same uniform
invoice-transaction reporting return form. For purposes of
this Section, "watercraft" means a Class 2, Class 3, or Class 4
watercraft as defined in Section 3-2 of the Boat Registration
and Safety Act, a personal watercraft, or any boat equipped
with an inboard motor.
Any retailer who sells only motor vehicles, watercraft,
aircraft, or trailers that are required to be registered with
an agency of this State, so that all retailers' occupation tax
liability is required to be reported, and is reported, on such
transaction reporting returns and who is not otherwise required
to file monthly or quarterly returns, need not file monthly or
quarterly returns. However, those retailers shall be required
to file returns on an annual basis.
The transaction reporting return, in the case of motor
vehicles or trailers that are required to be registered with an
agency of this State, shall be the same document as the Uniform

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Invoice referred to in Section 5-402 of The Illinois Vehicle
Code and must show the name and address of the seller; the name
and address of the purchaser; the amount of the selling price
including the amount allowed by the retailer for traded-in
property, if any; the amount allowed by the retailer for the
traded-in tangible personal property, if any, to the extent to
which Section 1 of this Act allows an exemption for the value
of traded-in property; the balance payable after deducting such
trade-in allowance from the total selling price; the amount of
tax due from the retailer with respect to such transaction; the
amount of tax collected from the purchaser by the retailer on
such transaction (or satisfactory evidence that such tax is not
due in that particular instance, if that is claimed to be the
fact); the place and date of the sale; a sufficient
identification of the property sold; such other information as
is required in Section 5-402 of The Illinois Vehicle Code, and
such other information as the Department may reasonably
require.
The transaction reporting return in the case of watercraft
or aircraft must show the name and address of the seller; the
name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 1 of this Act allows an exemption for
the value of traded-in property; the balance payable after

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deducting such trade-in allowance from the total selling price;
the amount of tax due from the retailer with respect to such
transaction; the amount of tax collected from the purchaser by
the retailer on such transaction (or satisfactory evidence that
such tax is not due in that particular instance, if that is
claimed to be the fact); the place and date of the sale, a
sufficient identification of the property sold, and such other
information as the Department may reasonably require.
Such transaction reporting return shall be filed not later
than 20 days after the day of delivery of the item that is
being sold, but may be filed by the retailer at any time sooner
than that if he chooses to do so. The transaction reporting
return and tax remittance or proof of exemption from the
Illinois use tax may be transmitted to the Department by way of
the State agency with which, or State officer with whom the
tangible personal property must be titled or registered (if
titling or registration is required) if the Department and such
agency or State officer determine that this procedure will
expedite the processing of applications for title or
registration.
With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the
Department shall issue, in the purchaser's name, a use tax
receipt (or a certificate of exemption if the Department is

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satisfied that the particular sale is tax exempt) which such
purchaser may submit to the agency with which, or State officer
with whom, he must title or register the tangible personal
property that is involved (if titling or registration is
required) in support of such purchaser's application for an
Illinois certificate or other evidence of title or registration
to such tangible personal property.
No retailer's failure or refusal to remit tax under this
Act precludes a user, who has paid the proper tax to the
retailer, from obtaining his certificate of title or other
evidence of title or registration (if titling or registration
is required) upon satisfying the Department that such user has
paid the proper tax (if tax is due) to the retailer. The
Department shall adopt appropriate rules to carry out the
mandate of this paragraph.
If the user who would otherwise pay tax to the retailer
wants the transaction reporting return filed and the payment of
the tax or proof of exemption made to the Department before the
retailer is willing to take these actions and such user has not
paid the tax to the retailer, such user may certify to the fact
of such delay by the retailer and may (upon the Department
being satisfied of the truth of such certification) transmit
the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to
the Department and obtain his tax receipt or exemption
determination, in which event the transaction reporting return

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and tax remittance (if a tax payment was required) shall be
credited by the Department to the proper retailer's account
with the Department, but without the 2.1% or 1.75% discount
provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the
same amount and in the same form in which it would be remitted
if the tax had been remitted to the Department by the retailer.
Refunds made by the seller during the preceding return
period to purchasers, on account of tangible personal property
returned to the seller, shall be allowed as a deduction under
subdivision 5 of his monthly or quarterly return, as the case
may be, in case the seller had theretofore included the
receipts from the sale of such tangible personal property in a
return filed by him and had paid the tax imposed by this Act
with respect to such receipts.
Where the seller is a corporation, the return filed on
behalf of such corporation shall be signed by the president,
vice-president, secretary or treasurer or by the properly
accredited agent of such corporation.
Where the seller is a limited liability company, the return
filed on behalf of the limited liability company shall be
signed by a manager, member, or properly accredited agent of
the limited liability company.
Except as provided in this Section, the retailer filing the
return under this Section shall, at the time of filing such
return, pay to the Department the amount of tax imposed by this

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Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
on and after January 1, 1990, or $5 per calendar year,
whichever is greater, which is allowed to reimburse the
retailer for the expenses incurred in keeping records,
preparing and filing returns, remitting the tax and supplying
data to the Department on request. Any prepayment made pursuant
to Section 2d of this Act shall be included in the amount on
which such 2.1% or 1.75% discount is computed. In the case of
retailers who report and pay the tax on a transaction by
transaction basis, as provided in this Section, such discount
shall be taken with each such tax remittance instead of when
such retailer files his periodic return. The discount allowed
under this Section is allowed only for returns that are filed
in the manner required by this Act. The Department may disallow
the discount for retailers whose certificate of registration is
revoked at the time the return is filed, but only if the
Department's decision to revoke the certificate of
registration has become final.
Before October 1, 2000, if the taxpayer's average monthly
tax liability to the Department under this Act, the Use Tax
Act, the Service Occupation Tax Act, and the Service Use Tax
Act, excluding any liability for prepaid sales tax to be
remitted in accordance with Section 2d of this Act, was $10,000
or more during the preceding 4 complete calendar quarters, he
shall file a return with the Department each month by the 20th
day of the month next following the month during which such tax

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liability is incurred and shall make payments to the Department
on or before the 7th, 15th, 22nd and last day of the month
during which such liability is incurred. On and after October
1, 2000, if the taxpayer's average monthly tax liability to the
Department under this Act, the Use Tax Act, the Service
Occupation Tax Act, and the Service Use Tax Act, excluding any
liability for prepaid sales tax to be remitted in accordance
with Section 2d of this Act, was $20,000 or more during the
preceding 4 complete calendar quarters, he shall file a return
with the Department each month by the 20th day of the month
next following the month during which such tax liability is
incurred and shall make payment to the Department on or before
the 7th, 15th, 22nd and last day of the month during which such
liability is incurred. If the month during which such tax
liability is incurred began prior to January 1, 1985, each
payment shall be in an amount equal to 1/4 of the taxpayer's
actual liability for the month or an amount set by the
Department not to exceed 1/4 of the average monthly liability
of the taxpayer to the Department for the preceding 4 complete
calendar quarters (excluding the month of highest liability and
the month of lowest liability in such 4 quarter period). If the
month during which such tax liability is incurred begins on or
after January 1, 1985 and prior to January 1, 1987, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 27.5% of the taxpayer's
liability for the same calendar month of the preceding year. If

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the month during which such tax liability is incurred begins on
or after January 1, 1987 and prior to January 1, 1988, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 26.25% of the taxpayer's
liability for the same calendar month of the preceding year. If
the month during which such tax liability is incurred begins on
or after January 1, 1988, and prior to January 1, 1989, or
begins on or after January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year. If the month during which
such tax liability is incurred begins on or after January 1,
1989, and prior to January 1, 1996, each payment shall be in an
amount equal to 22.5% of the taxpayer's actual liability for
the month or 25% of the taxpayer's liability for the same
calendar month of the preceding year or 100% of the taxpayer's
actual liability for the quarter monthly reporting period. The
amount of such quarter monthly payments shall be credited
against the final tax liability of the taxpayer's return for
that month. Before October 1, 2000, once applicable, the
requirement of the making of quarter monthly payments to the
Department by taxpayers having an average monthly tax liability
of $10,000 or more as determined in the manner provided above
shall continue until such taxpayer's average monthly liability
to the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the

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month of lowest liability) is less than $9,000, or until such
taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $10,000. However, if a
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $10,000
threshold stated above, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status. On
and after October 1, 2000, once applicable, the requirement of
the making of quarter monthly payments to the Department by
taxpayers having an average monthly tax liability of $20,000 or
more as determined in the manner provided above shall continue
until such taxpayer's average monthly liability to the
Department during the preceding 4 complete calendar quarters
(excluding the month of highest liability and the month of
lowest liability) is less than $19,000 or until such taxpayer's
average monthly liability to the Department as computed for
each calendar quarter of the 4 preceding complete calendar
quarter period is less than $20,000. However, if a taxpayer can
show the Department that a substantial change in the taxpayer's
business has occurred which causes the taxpayer to anticipate
that his average monthly tax liability for the reasonably
foreseeable future will fall below the $20,000 threshold stated
above, then such taxpayer may petition the Department for a

SB3445 - 280 - LRB100 20331 HLH 35618 b
change in such taxpayer's reporting status. The Department
shall change such taxpayer's reporting status unless it finds
that such change is seasonal in nature and not likely to be
long term. If any such quarter monthly payment is not paid at
the time or in the amount required by this Section, then the
taxpayer shall be liable for penalties and interest on the
difference between the minimum amount due as a payment and the
amount of such quarter monthly payment actually and timely
paid, except insofar as the taxpayer has previously made
payments for that month to the Department in excess of the
minimum payments previously due as provided in this Section.
The Department shall make reasonable rules and regulations to
govern the quarter monthly payment amount and quarter monthly
payment dates for taxpayers who file on other than a calendar
monthly basis.
The provisions of this paragraph apply before October 1,
2001. Without regard to whether a taxpayer is required to make
quarter monthly payments as specified above, any taxpayer who
is required by Section 2d of this Act to collect and remit
prepaid taxes and has collected prepaid taxes which average in
excess of $25,000 per month during the preceding 2 complete
calendar quarters, shall file a return with the Department as
required by Section 2f and shall make payments to the
Department on or before the 7th, 15th, 22nd and last day of the
month during which such liability is incurred. If the month
during which such tax liability is incurred began prior to

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September 1, 1985 (the effective date of Public Act 84-221),
each payment shall be in an amount not less than 22.5% of the
taxpayer's actual liability under Section 2d. If the month
during which such tax liability is incurred begins on or after
January 1, 1986, each payment shall be in an amount equal to
22.5% of the taxpayer's actual liability for the month or 27.5%
of the taxpayer's liability for the same calendar month of the
preceding calendar year. If the month during which such tax
liability is incurred begins on or after January 1, 1987, each
payment shall be in an amount equal to 22.5% of the taxpayer's
actual liability for the month or 26.25% of the taxpayer's
liability for the same calendar month of the preceding year.
The amount of such quarter monthly payments shall be credited
against the final tax liability of the taxpayer's return for
that month filed under this Section or Section 2f, as the case
may be. Once applicable, the requirement of the making of
quarter monthly payments to the Department pursuant to this
paragraph shall continue until such taxpayer's average monthly
prepaid tax collections during the preceding 2 complete
calendar quarters is $25,000 or less. If any such quarter
monthly payment is not paid at the time or in the amount
required, the taxpayer shall be liable for penalties and
interest on such difference, except insofar as the taxpayer has
previously made payments for that month in excess of the
minimum payments previously due.
The provisions of this paragraph apply on and after October

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1, 2001. Without regard to whether a taxpayer is required to
make quarter monthly payments as specified above, any taxpayer
who is required by Section 2d of this Act to collect and remit
prepaid taxes and has collected prepaid taxes that average in
excess of $20,000 per month during the preceding 4 complete
calendar quarters shall file a return with the Department as
required by Section 2f and shall make payments to the
Department on or before the 7th, 15th, 22nd and last day of the
month during which the liability is incurred. Each payment
shall be in an amount equal to 22.5% of the taxpayer's actual
liability for the month or 25% of the taxpayer's liability for
the same calendar month of the preceding year. The amount of
the quarter monthly payments shall be credited against the
final tax liability of the taxpayer's return for that month
filed under this Section or Section 2f, as the case may be.
Once applicable, the requirement of the making of quarter
monthly payments to the Department pursuant to this paragraph
shall continue until the taxpayer's average monthly prepaid tax
collections during the preceding 4 complete calendar quarters
(excluding the month of highest liability and the month of
lowest liability) is less than $19,000 or until such taxpayer's
average monthly liability to the Department as computed for
each calendar quarter of the 4 preceding complete calendar
quarters is less than $20,000. If any such quarter monthly
payment is not paid at the time or in the amount required, the
taxpayer shall be liable for penalties and interest on such

SB3445 - 283 - LRB100 20331 HLH 35618 b
difference, except insofar as the taxpayer has previously made
payments for that month in excess of the minimum payments
previously due.
If any payment provided for in this Section exceeds the
taxpayer's liabilities under this Act, the Use Tax Act, the
Service Occupation Tax Act and the Service Use Tax Act, as
shown on an original monthly return, the Department shall, if
requested by the taxpayer, issue to the taxpayer a credit
memorandum no later than 30 days after the date of payment. The
credit evidenced by such credit memorandum may be assigned by
the taxpayer to a similar taxpayer under this Act, the Use Tax
Act, the Service Occupation Tax Act or the Service Use Tax Act,
in accordance with reasonable rules and regulations to be
prescribed by the Department. If no such request is made, the
taxpayer may credit such excess payment against tax liability
subsequently to be remitted to the Department under this Act,
the Use Tax Act, the Service Occupation Tax Act or the Service
Use Tax Act, in accordance with reasonable rules and
regulations prescribed by the Department. If the Department
subsequently determined that all or any part of the credit
taken was not actually due to the taxpayer, the taxpayer's 2.1%
and 1.75% vendor's discount shall be reduced by 2.1% or 1.75%
of the difference between the credit taken and that actually
due, and that taxpayer shall be liable for penalties and
interest on such difference.
If a retailer of motor fuel is entitled to a credit under

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Section 2d of this Act which exceeds the taxpayer's liability
to the Department under this Act for the month which the
taxpayer is filing a return, the Department shall issue the
taxpayer a credit memorandum for the excess.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund, a special fund in the
State treasury which is hereby created, the net revenue
realized for the preceding month from the 1% tax imposed under
this Act on sales of food for human consumption which is to be
consumed off the premises where it is sold (other than
alcoholic beverages, soft drinks and food which has been
prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances, products
classified as Class III medical devices by the United States
Food and Drug Administration that are used for cancer treatment
pursuant to a prescription, as well as any accessories and
components related to those devices, and insulin, urine testing
materials, syringes and needles used by diabetics.
Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund, a special
fund in the State treasury which is hereby created, 4% of the
net revenue realized for the preceding month from the 6.25%
general rate.
Beginning August 1, 2000, each month the Department shall
pay into the County and Mass Transit District Fund 20% of the
net revenue realized for the preceding month from the 1.25%

SB3445 - 285 - LRB100 20331 HLH 35618 b
rate on the selling price of motor fuel and gasohol. Beginning
September 1, 2010, each month the Department shall pay into the
County and Mass Transit District Fund 20% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of sales tax holiday items.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the net revenue
realized for the preceding month from the 6.25% general rate on
the selling price of tangible personal property.
Beginning August 1, 2000, each month the Department shall
pay into the Local Government Tax Fund 80% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of motor fuel and gasohol. Beginning September 1,
2010, each month the Department shall pay into the Local
Government Tax Fund 80% of the net revenue realized for the
preceding month from the 1.25% rate on the selling price of
sales tax holiday items.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2011, each month the Department shall pay
into the Clean Air Act Permit Fund 80% of the net revenue

SB3445 - 286 - LRB100 20331 HLH 35618 b
realized for the preceding month from the 6.25% general rate on
the selling price of sorbents used in Illinois in the process
of sorbent injection as used to comply with the Environmental
Protection Act or the federal Clean Air Act, but the total
payment into the Clean Air Act Permit Fund under this Act and
the Use Tax Act shall not exceed $2,000,000 in any fiscal year.
Beginning July 1, 2013, each month the Department shall pay
into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service Use Tax
Act, and the Service Occupation Tax Act an amount equal to the
average monthly deficit in the Underground Storage Tank Fund
during the prior year, as certified annually by the Illinois
Environmental Protection Agency, but the total payment into the
Underground Storage Tank Fund under this Act, the Use Tax Act,
the Service Use Tax Act, and the Service Occupation Tax Act
shall not exceed $18,000,000 in any State fiscal year. As used
in this paragraph, the "average monthly deficit" shall be equal
to the difference between the average monthly claims for
payment by the fund and the average monthly revenues deposited
into the fund, excluding payments made pursuant to this
paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, the Service
Use Tax Act, the Service Occupation Tax Act, and this Act, each
month the Department shall deposit $500,000 into the State
Crime Laboratory Fund.

SB3445 - 287 - LRB100 20331 HLH 35618 b
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to this Act,
Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
Act, and Section 9 of the Service Occupation Tax Act, such Acts
being hereinafter called the "Tax Acts" and such aggregate of
2.2% or 3.8%, as the case may be, of moneys being hereinafter
called the "Tax Act Amount", and (2) the amount transferred to
the Build Illinois Fund from the State and Local Sales Tax
Reform Fund shall be less than the Annual Specified Amount (as
hereinafter defined), an amount equal to the difference shall
be immediately paid into the Build Illinois Fund from other
moneys received by the Department pursuant to the Tax Acts; the
"Annual Specified Amount" means the amounts specified below for
fiscal years 1986 through 1993:
Fiscal Year Annual Specified Amount
1986 $54,800,000
1987 $76,650,000
1988 $80,480,000
1989 $88,510,000
1990 $115,330,000

SB3445 - 288 - LRB100 20331 HLH 35618 b
1991 $145,470,000
1992 $182,730,000
1993 $206,520,000;
and means the Certified Annual Debt Service Requirement (as
defined in Section 13 of the Build Illinois Bond Act) or the
Tax Act Amount, whichever is greater, for fiscal year 1994 and
each fiscal year thereafter; and further provided, that if on
the last business day of any month the sum of (1) the Tax Act
Amount required to be deposited into the Build Illinois Bond
Account in the Build Illinois Fund during such month and (2)
the amount transferred to the Build Illinois Fund from the
State and Local Sales Tax Reform Fund shall have been less than
1/12 of the Annual Specified Amount, an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and, further provided, that in no event shall the
payments required under the preceding proviso result in
aggregate payments into the Build Illinois Fund pursuant to
this clause (b) for any fiscal year in excess of the greater of
(i) the Tax Act Amount or (ii) the Annual Specified Amount for
such fiscal year. The amounts payable into the Build Illinois
Fund under clause (b) of the first sentence in this paragraph
shall be payable only until such time as the aggregate amount
on deposit under each trust indenture securing Bonds issued and
outstanding pursuant to the Build Illinois Bond Act is
sufficient, taking into account any future investment income,

SB3445 - 289 - LRB100 20331 HLH 35618 b
to fully provide, in accordance with such indenture, for the
defeasance of or the payment of the principal of, premium, if
any, and interest on the Bonds secured by such indenture and on
any Bonds expected to be issued thereafter and all fees and
costs payable with respect thereto, all as certified by the
Director of the Bureau of the Budget (now Governor's Office of
Management and Budget). If on the last business day of any
month in which Bonds are outstanding pursuant to the Build
Illinois Bond Act, the aggregate of moneys deposited in the
Build Illinois Bond Account in the Build Illinois Fund in such
month shall be less than the amount required to be transferred
in such month from the Build Illinois Bond Account to the Build
Illinois Bond Retirement and Interest Fund pursuant to Section
13 of the Build Illinois Bond Act, an amount equal to such
deficiency shall be immediately paid from other moneys received
by the Department pursuant to the Tax Acts to the Build
Illinois Fund; provided, however, that any amounts paid to the
Build Illinois Fund in any fiscal year pursuant to this
sentence shall be deemed to constitute payments pursuant to
clause (b) of the first sentence of this paragraph and shall
reduce the amount otherwise payable for such fiscal year
pursuant to that clause (b). The moneys received by the
Department pursuant to this Act and required to be deposited
into the Build Illinois Fund are subject to the pledge, claim
and charge set forth in Section 12 of the Build Illinois Bond
Act.

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Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000

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2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 246,000,000
2022 260,000,000
2023 275,000,000
2024 275,000,000
2025 275,000,000
2026 279,000,000
2027 292,000,000
2028 307,000,000
2029 322,000,000
2030 338,000,000

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2031 350,000,000
2032 350,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total Deposit",
has been deposited.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter

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enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois Tax
Increment Fund 0.27% of 80% of the net revenue realized for the
preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning with the receipt of the first report of
taxes paid by an eligible business and continuing for a 25-year
period, the Department shall each month pay into the Energy
Infrastructure Fund 80% of the net revenue realized from the
6.25% general rate on the selling price of Illinois-mined coal
that was sold to an eligible business. For purposes of this
paragraph, the term "eligible business" means a new electric
generating facility certified pursuant to Section 605-332 of
the Department of Commerce and Economic Opportunity Law of the
Civil Administrative Code of Illinois.
Subject to payment of amounts into the Build Illinois Fund,
the McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, and the Energy Infrastructure Fund pursuant to
the preceding paragraphs or in any amendments to this Section
hereafter enacted, beginning on the first day of the first
calendar month to occur on or after August 26, 2014 (the
effective date of Public Act 98-1098), each month, from the
collections made under Section 9 of the Use Tax Act, Section 9

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of the Service Use Tax Act, Section 9 of the Service Occupation
Tax Act, and Section 3 of the Retailers' Occupation Tax Act,
the Department shall pay into the Tax Compliance and
Administration Fund, to be used, subject to appropriation, to
fund additional auditors and compliance personnel at the
Department of Revenue, an amount equal to 1/12 of 5% of 80% of
the cash receipts collected during the preceding fiscal year by
the Audit Bureau of the Department under the Use Tax Act, the
Service Use Tax Act, the Service Occupation Tax Act, the
Retailers' Occupation Tax Act, and associated local occupation
and use taxes administered by the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, the Energy Infrastructure Fund, and the Tax
Compliance and Administration Fund as provided in this Section,
beginning on July 1, 2018 the Department shall pay each month
into the Downstate Public Transportation Fund the moneys
required to be so paid under Section 2-3 of the Downstate
Public Transportation Act.
Of the remainder of the moneys received by the Department
pursuant to this Act, 75% thereof shall be paid into the State
Treasury and 25% shall be reserved in a special account and
used only for the transfer to the Common School Fund as part of
the monthly transfer from the General Revenue Fund in
accordance with Section 8a of the State Finance Act.
The Department may, upon separate written notice to a

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taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.
Such annual return to the Department shall include a statement
of gross receipts as shown by the retailer's last Federal
income tax return. If the total receipts of the business as
reported in the Federal income tax return do not agree with the
gross receipts reported to the Department of Revenue for the
same period, the retailer shall attach to his annual return a
schedule showing a reconciliation of the 2 amounts and the
reasons for the difference. The retailer's annual return to the
Department shall also disclose the cost of goods sold by the
retailer during the year covered by such return, opening and
closing inventories of such goods for such year, costs of goods
used from stock or taken from stock and given away by the
retailer during such year, payroll information of the
retailer's business during such year and any additional
reasonable information which the Department deems would be
helpful in determining the accuracy of the monthly, quarterly
or annual returns filed by such retailer as provided for in
this Section.
If the annual information return required by this Section
is not filed when and as required, the taxpayer shall be liable
as follows:
(i) Until January 1, 1994, the taxpayer shall be liable

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for a penalty equal to 1/6 of 1% of the tax due from such
taxpayer under this Act during the period to be covered by
the annual return for each month or fraction of a month
until such return is filed as required, the penalty to be
assessed and collected in the same manner as any other
penalty provided for in this Act.
(ii) On and after January 1, 1994, the taxpayer shall
be liable for a penalty as described in Section 3-4 of the
Uniform Penalty and Interest Act.
The chief executive officer, proprietor, owner or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person who
willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and punished
accordingly. The annual return form prescribed by the
Department shall include a warning that the person signing the
return may be liable for perjury.
The provisions of this Section concerning the filing of an
annual information return do not apply to a retailer who is not
required to file an income tax return with the United States
Government.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act

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for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to such
sales, if the retailers who are affected do not make written
objection to the Department to this arrangement.
Any person who promotes, organizes, provides retail
selling space for concessionaires or other types of sellers at
the Illinois State Fair, DuQuoin State Fair, county fairs,
local fairs, art shows, flea markets and similar exhibitions or
events, including any transient merchant as defined by Section
2 of the Transient Merchant Act of 1987, is required to file a
report with the Department providing the name of the merchant's
business, the name of the person or persons engaged in
merchant's business, the permanent address and Illinois
Retailers Occupation Tax Registration Number of the merchant,
the dates and location of the event and other reasonable
information that the Department may require. The report must be
filed not later than the 20th day of the month next following

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the month during which the event with retail sales was held.
Any person who fails to file a report required by this Section
commits a business offense and is subject to a fine not to
exceed $250.
Any person engaged in the business of selling tangible
personal property at retail as a concessionaire or other type
of seller at the Illinois State Fair, county fairs, art shows,
flea markets and similar exhibitions or events, or any
transient merchants, as defined by Section 2 of the Transient
Merchant Act of 1987, may be required to make a daily report of
the amount of such sales to the Department and to make a daily
payment of the full amount of tax due. The Department shall
impose this requirement when it finds that there is a
significant risk of loss of revenue to the State at such an
exhibition or event. Such a finding shall be based on evidence
that a substantial number of concessionaires or other sellers
who are not residents of Illinois will be engaging in the
business of selling tangible personal property at retail at the
exhibition or event, or other evidence of a significant risk of
loss of revenue to the State. The Department shall notify
concessionaires and other sellers affected by the imposition of
this requirement. In the absence of notification by the
Department, the concessionaires and other sellers shall file
their returns as otherwise required in this Section.
(Source: P.A. 99-352, eff. 8-12-15; 99-858, eff. 8-19-16;
99-933, eff. 1-27-17; 100-303, eff. 8-24-17; 100-363, eff.

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7-1-18; revised 10-27-17.)
(35 ILCS 120/5j) (from Ch. 120, par. 444j)
Sec. 5j. If any taxpayer, outside the usual course of his
business, sells or transfers the major part of any one or more
of (A) the stock of goods which he is engaged in the business
of selling, or (B) the furniture or fixtures, (C) the machinery
and equipment, or (D) the real property, of any business that
is subject to the provisions of this Act, the purchaser or
transferee of such asset shall, no later than 10 business days
prior to after the sale or transfer, file a notice of sale or
transfer of business assets with the Chicago office of the
Department disclosing the name and address of the seller or
transferor, the name and address of the purchaser or
transferee, the date of the sale or transfer, a copy of the
sales contract and financing agreements which shall include a
description of the property sold, the amount of the purchase
price or a statement of other consideration for the sale or
transfer, the terms for payment of the purchase price, and such
other information as the Department may reasonably require. If
the purchaser or transferee fails to file the above described
notice of sale with the Department within the prescribed time,
the purchaser or transferee shall be personally liable for the
amount owed hereunder by the seller or transferor to the
Department up to the amount of the reasonable value of the
property acquired by the purchaser or transferee. The seller or

SB3445 - 300 - LRB100 20331 HLH 35618 b
transferor shall pay the Department the amount of tax, penalty
and interest (if any) due from him under this Act up to the
date of the payment of tax. The seller or transferor, or the
purchaser or transferee, at least 10 business days before the
date of the sale or transfer, may notify the Department of the
intended sale or transfer and request the Department to audit
the books and records of the seller or transferor, or to do
whatever else may be necessary to determine how much the seller
or transferor owes to the Department hereunder up to the date
of the sale or transfer. The Department shall take such steps
as may be appropriate to comply with such request.
Any order issued by the Department pursuant to this Section
to withhold from the purchase price shall be issued within 10
business days after the Department receives notification of a
sale as provided in this Section. The purchaser or transferee
shall withhold such portion of the purchase price as may be
directed by the Department, but not to exceed a minimum amount
varying by type of business, as determined by the Department
pursuant to regulations, plus twice the outstanding unpaid
liabilities and twice the average liability of preceding
filings times the number of unfiled returns, to cover the
amount of all tax, penalty and interest due and unpaid by the
seller or transferor under this Act or, if the payment of money
or property is not involved, shall withhold the performance of
the condition that constitutes the consideration for the sale
or transfer. Within 60 business days after issuance of the

SB3445 - 301 - LRB100 20331 HLH 35618 b
initial order to withhold, the Department shall provide written
notice to the purchaser or transferee of the actual amount of
all taxes, penalties and interest then due and whether or not
additional amounts may become due as a result of unfiled
returns, pending assessments and audits not completed. The
purchaser or transferee shall continue to withhold the amount
directed to be withheld by the initial order or such lesser
amount as is specified by the final withholding order or to
withhold the performance of the condition which constitutes the
consideration for the sale or transfer until the purchaser or
transferee receives from the Department a certificate showing
that such tax, penalty and interest have been paid or a
certificate from the Department showing that no tax, penalty or
interest is due from the seller or transferor under this Act.
The purchaser or transferee is relieved of any duty to
continue to withhold from the purchase price and of any
liability for tax, penalty or interest due hereunder from the
seller or transferor if the Department fails to notify the
purchaser or transferee in the manner provided herein of the
amount to be withheld within 10 business days after the sale or
transfer has been reported to the Department or within 60
business days after issuance of the initial order to withhold,
as the case may be. The Department shall have the right to
determine amounts claimed on an estimated basis to allow for
non-filed periods, pending assessments and audits not
completed, however the purchaser or transferee shall be

SB3445 - 302 - LRB100 20331 HLH 35618 b
personally liable only for the actual amount due when
determined.
If the seller or transferor fails to pay the tax, penalty
and interest (if any) due from him hereunder and the Department
makes timely claim therefor against the purchaser or transferee
as hereinabove provided, then the purchaser or transferee shall
pay the amount so withheld from the purchase price to the
Department. If the purchaser or transferee fails to comply with
the requirements of this Section, the purchaser or transferee
shall be personally liable to the Department for the amount
owed hereunder by the seller or transferor to the Department up
to the amount of the reasonable value of the property acquired
by the purchaser or transferee.
Any person who shall acquire any property or rights thereto
which, at the time of such acquisition, is subject to a valid
lien in favor of the Department shall be personally liable to
the Department for a sum equal to the amount of taxes secured
by such lien but not to exceed the reasonable value of such
property acquired by him.
(Source: P.A. 94-776, eff. 5-19-06.)
Section 50. The Cigarette Machine Operators' Occupation
Tax Act is amended by changing Section 1-40 as follows:
(35 ILCS 128/1-40)
Sec. 1-40. Returns.

SB3445 - 303 - LRB100 20331 HLH 35618 b
(a) Cigarette machine operators shall file a return and
remit the tax imposed by Section 1-10 by the 15th day of each
month covering the preceding calendar month. Each such return
shall show: the quantity of cigarettes made or fabricated
during the period covered by the return; the beginning and
ending meter reading for each cigarette machine for the period
covered by the return; the quantity of such cigarettes sold or
otherwise disposed of during the period covered by the return;
the brand family and manufacturer and quantity of tobacco
products used to make or fabricate cigarettes by use of a
cigarette machine; the license number of each distributor from
whom tobacco products are purchased; the type and quantity of
cigarette tubes purchased for use in a cigarette machine; the
type and quantity of cigarette tubes used in a cigarette
machine; and such other information as the Department may
require. Such returns shall be filed on forms prescribed and
furnished by the Department. The Department may promulgate
rules to require that the cigarette machine operator's return
be accompanied by appropriate computer-generated magnetic
media supporting schedule data in the format required by the
Department, unless, as provided by rule, the Department grants
an exception upon petition of a cigarette machine operator.
Cigarette machine operators shall send a copy of those
returns, together with supporting schedule data, to the
Attorney General's Office by the 15th day of each month for the
period covering the preceding calendar month.

SB3445 - 304 - LRB100 20331 HLH 35618 b
(b) Cigarette machine operators may take a credit against
any tax due under Section 1-10 of this Act for taxes imposed
and paid under the Tobacco Products Tax Act of 1995 on tobacco
products sold to a customer and used in a rolling machine
located at the cigarette machine operator's place of business.
To be eligible for such credit, the tobacco product must meet
the requirements of subsection (a) of Section 1-25 of this Act.
This subsection (b) is exempt from the provisions of Section
1-155 of this Act.
(c) If any payment provided for in this Section exceeds the
cigarette machine operator's liabilities under this Act, as
shown on an original return, the cigarette machine operator may
credit such excess payment against liability subsequently to be
remitted to the Department under this Act, in accordance with
reasonable rules adopted by the Department.
(Source: P.A. 97-688, eff. 6-14-12.)
Section 55. The Cigarette Tax Act is amended by changing
Section 2 as follows:
(35 ILCS 130/2) (from Ch. 120, par. 453.2)
Sec. 2. Tax imposed; rate; collection, payment, and
distribution; discount.
(a) A tax is imposed upon any person engaged in business as
a retailer of cigarettes in this State at the rate of 5 1/2
mills per cigarette sold, or otherwise disposed of in the

SB3445 - 305 - LRB100 20331 HLH 35618 b
course of such business in this State. In addition to any other
tax imposed by this Act, a tax is imposed upon any person
engaged in business as a retailer of cigarettes in this State
at a rate of 1/2 mill per cigarette sold or otherwise disposed
of in the course of such business in this State on and after
January 1, 1947, and shall be paid into the Metropolitan Fair
and Exposition Authority Reconstruction Fund or as otherwise
provided in Section 29. On and after December 1, 1985, in
addition to any other tax imposed by this Act, a tax is imposed
upon any person engaged in business as a retailer of cigarettes
in this State at a rate of 4 mills per cigarette sold or
otherwise disposed of in the course of such business in this
State. Of the additional tax imposed by this amendatory Act of
1985, $9,000,000 of the moneys received by the Department of
Revenue pursuant to this Act shall be paid each month into the
Common School Fund. On and after the effective date of this
amendatory Act of 1989, in addition to any other tax imposed by
this Act, a tax is imposed upon any person engaged in business
as a retailer of cigarettes at the rate of 5 mills per
cigarette sold or otherwise disposed of in the course of such
business in this State. On and after the effective date of this
amendatory Act of 1993, in addition to any other tax imposed by
this Act, a tax is imposed upon any person engaged in business
as a retailer of cigarettes at the rate of 7 mills per
cigarette sold or otherwise disposed of in the course of such
business in this State. On and after December 15, 1997, in

SB3445 - 306 - LRB100 20331 HLH 35618 b
addition to any other tax imposed by this Act, a tax is imposed
upon any person engaged in business as a retailer of cigarettes
at the rate of 7 mills per cigarette sold or otherwise disposed
of in the course of such business of this State. All of the
moneys received by the Department of Revenue pursuant to this
Act and the Cigarette Use Tax Act from the additional taxes
imposed by this amendatory Act of 1997, shall be paid each
month into the Common School Fund. On and after July 1, 2002,
in addition to any other tax imposed by this Act, a tax is
imposed upon any person engaged in business as a retailer of
cigarettes at the rate of 20.0 mills per cigarette sold or
otherwise disposed of in the course of such business in this
State. Beginning on June 24, 2012, in addition to any other tax
imposed by this Act, a tax is imposed upon any person engaged
in business as a retailer of cigarettes at the rate of 50 mills
per cigarette sold or otherwise disposed of in the course of
such business in this State. All moneys received by the
Department of Revenue under this Act and the Cigarette Use Tax
Act from the additional taxes imposed by this amendatory Act of
the 97th General Assembly shall be paid each month into the
Healthcare Provider Relief Fund. The payment of such taxes
shall be evidenced by a stamp affixed to each original package
of cigarettes, or an authorized substitute for such stamp
imprinted on each original package of such cigarettes
underneath the sealed transparent outside wrapper of such
original package, as hereinafter provided. However, such taxes

SB3445 - 307 - LRB100 20331 HLH 35618 b
are not imposed upon any activity in such business in
interstate commerce or otherwise, which activity may not under
the Constitution and statutes of the United States be made the
subject of taxation by this State.
Beginning on the effective date of this amendatory Act of
the 92nd General Assembly and through June 30, 2006, all of the
moneys received by the Department of Revenue pursuant to this
Act and the Cigarette Use Tax Act, other than the moneys that
are dedicated to the Common School Fund, shall be distributed
each month as follows: first, there shall be paid into the
General Revenue Fund an amount which, when added to the amount
paid into the Common School Fund for that month, equals
$33,300,000, except that in the month of August of 2004, this
amount shall equal $83,300,000; then, from the moneys
remaining, if any amounts required to be paid into the General
Revenue Fund in previous months remain unpaid, those amounts
shall be paid into the General Revenue Fund; then, beginning on
April 1, 2003, from the moneys remaining, $5,000,000 per month
shall be paid into the School Infrastructure Fund; then, if any
amounts required to be paid into the School Infrastructure Fund
in previous months remain unpaid, those amounts shall be paid
into the School Infrastructure Fund; then the moneys remaining,
if any, shall be paid into the Long-Term Care Provider Fund. To
the extent that more than $25,000,000 has been paid into the
General Revenue Fund and Common School Fund per month for the
period of July 1, 1993 through the effective date of this

SB3445 - 308 - LRB100 20331 HLH 35618 b
amendatory Act of 1994 from combined receipts of the Cigarette
Tax Act and the Cigarette Use Tax Act, notwithstanding the
distribution provided in this Section, the Department of
Revenue is hereby directed to adjust the distribution provided
in this Section to increase the next monthly payments to the
Long Term Care Provider Fund by the amount paid to the General
Revenue Fund and Common School Fund in excess of $25,000,000
per month and to decrease the next monthly payments to the
General Revenue Fund and Common School Fund by that same excess
amount.
Beginning on July 1, 2006, all of the moneys received by
the Department of Revenue pursuant to this Act and the
Cigarette Use Tax Act, other than the moneys that are dedicated
to the Common School Fund and, beginning on the effective date
of this amendatory Act of the 97th General Assembly, other than
the moneys from the additional taxes imposed by this amendatory
Act of the 97th General Assembly that must be paid each month
into the Healthcare Provider Relief Fund, shall be distributed
each month as follows: first, there shall be paid into the
General Revenue Fund an amount that, when added to the amount
paid into the Common School Fund for that month, equals
$29,200,000; then, from the moneys remaining, if any amounts
required to be paid into the General Revenue Fund in previous
months remain unpaid, those amounts shall be paid into the
General Revenue Fund; then from the moneys remaining,
$5,000,000 per month shall be paid into the School

SB3445 - 309 - LRB100 20331 HLH 35618 b
Infrastructure Fund; then, if any amounts required to be paid
into the School Infrastructure Fund in previous months remain
unpaid, those amounts shall be paid into the School
Infrastructure Fund; then the moneys remaining, if any, shall
be paid into the Long-Term Care Provider Fund.
Moneys collected from the tax imposed on little cigars
under Section 10-10 of the Tobacco Products Tax Act of 1995
shall be included with the moneys collected under the Cigarette
Tax Act and the Cigarette Use Tax Act when making distributions
to the Common School Fund, the Healthcare Provider Relief Fund,
the General Revenue Fund, the School Infrastructure Fund, and
the Long-Term Care Provider Fund under this Section.
When any tax imposed herein terminates or has terminated,
distributors who have bought stamps while such tax was in
effect and who therefore paid such tax, but who can show, to
the Department's satisfaction, that they sold the cigarettes to
which they affixed such stamps after such tax had terminated
and did not recover the tax or its equivalent from purchasers,
shall be allowed by the Department to take credit for such
absorbed tax against subsequent tax stamp purchases from the
Department by such distributor.
The impact of the tax levied by this Act is imposed upon
the retailer and shall be prepaid or pre-collected by the
distributor for the purpose of convenience and facility only,
and the amount of the tax shall be added to the price of the
cigarettes sold by such distributor. Collection of the tax

SB3445 - 310 - LRB100 20331 HLH 35618 b
shall be evidenced by a stamp or stamps affixed to each
original package of cigarettes, as hereinafter provided. Any
distributor who purchases stamps may credit any excess payments
verified by the Department against amounts subsequently due for
the purchase of additional stamps, until such time as no excess
payment remains.
Each distributor shall collect the tax from the retailer at
or before the time of the sale, shall affix the stamps as
hereinafter required, and shall remit the tax collected from
retailers to the Department, as hereinafter provided. Any
distributor who fails to properly collect and pay the tax
imposed by this Act shall be liable for the tax. Any
distributor having cigarettes to which stamps have been affixed
in his possession for sale on the effective date of this
amendatory Act of 1989 shall not be required to pay the
additional tax imposed by this amendatory Act of 1989 on such
stamped cigarettes. Any distributor having cigarettes to which
stamps have been affixed in his or her possession for sale at
12:01 a.m. on the effective date of this amendatory Act of
1993, is required to pay the additional tax imposed by this
amendatory Act of 1993 on such stamped cigarettes. This
payment, less the discount provided in subsection (b), shall be
due when the distributor first makes a purchase of cigarette
tax stamps after the effective date of this amendatory Act of
1993, or on the first due date of a return under this Act after
the effective date of this amendatory Act of 1993, whichever

SB3445 - 311 - LRB100 20331 HLH 35618 b
occurs first. Any distributor having cigarettes to which stamps
have been affixed in his possession for sale on December 15,
1997 shall not be required to pay the additional tax imposed by
this amendatory Act of 1997 on such stamped cigarettes.
Any distributor having cigarettes to which stamps have been
affixed in his or her possession for sale on July 1, 2002 shall
not be required to pay the additional tax imposed by this
amendatory Act of the 92nd General Assembly on those stamped
cigarettes.
Any retailer having cigarettes in his or her possession on
June 24, 2012 to which tax stamps have been affixed is not
required to pay the additional tax that begins on June 24, 2012
imposed by this amendatory Act of the 97th General Assembly on
those stamped cigarettes. Any distributor having cigarettes in
his or her possession on June 24, 2012 to which tax stamps have
been affixed, and any distributor having stamps in his or her
possession on June 24, 2012 that have not been affixed to
packages of cigarettes before June 24, 2012, is required to pay
the additional tax that begins on June 24, 2012 imposed by this
amendatory Act of the 97th General Assembly to the extent the
calendar year 2012 average monthly volume of cigarette stamps
in the distributor's possession exceeds the average monthly
volume of cigarette stamps purchased by the distributor in
calendar year 2011. This payment, less the discount provided in
subsection (b), is due when the distributor first makes a
purchase of cigarette stamps on or after June 24, 2012 or on

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the first due date of a return under this Act occurring on or
after June 24, 2012, whichever occurs first. Those distributors
may elect to pay the additional tax on packages of cigarettes
to which stamps have been affixed and on any stamps in the
distributor's possession that have not been affixed to packages
of cigarettes over a period not to exceed 12 months from the
due date of the additional tax by notifying the Department in
writing. The first payment for distributors making such
election is due when the distributor first makes a purchase of
cigarette tax stamps on or after June 24, 2012 or on the first
due date of a return under this Act occurring on or after June
24, 2012, whichever occurs first. Distributors making such an
election are not entitled to take the discount provided in
subsection (b) on such payments.
Distributors making sales of cigarettes to secondary
distributors shall add the amount of the tax to the price of
the cigarettes sold by the distributors. Secondary
distributors making sales of cigarettes to retailers shall
include the amount of the tax in the price of the cigarettes
sold to retailers. The amount of tax shall not be less than the
amount of taxes imposed by the State and all local
jurisdictions. The amount of local taxes shall be calculated
based on the location of the retailer's place of business shown
on the retailer's certificate of registration or
sub-registration issued to the retailer pursuant to Section 2a
of the Retailers' Occupation Tax Act. The original packages of

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cigarettes sold to the retailer shall bear all the required
stamps, or other indicia, for the taxes included in the price
of cigarettes.
The amount of the Cigarette Tax imposed by this Act shall
be separately stated, apart from the price of the goods, by
distributors, manufacturer representatives, secondary
distributors, and retailers, in all bills and sales invoices.
(b) The distributor shall be required to collect the taxes
provided under paragraph (a) hereof, and, to cover the costs of
such collection, shall be allowed a discount during any year
commencing July 1st and ending the following June 30th in
accordance with the schedule set out hereinbelow, which
discount shall be allowed at the time of purchase of the stamps
when purchase is required by this Act, or at the time when the
tax is remitted to the Department without the purchase of
stamps from the Department when that method of paying the tax
is required or authorized by this Act. Prior to December 1,
1985, a discount equal to 1 2/3% of the amount of the tax up to
and including the first $700,000 paid hereunder by such
distributor to the Department during any such year; 1 1/3% of
the next $700,000 of tax or any part thereof, paid hereunder by
such distributor to the Department during any such year; 1% of
the next $700,000 of tax, or any part thereof, paid hereunder
by such distributor to the Department during any such year, and
2/3 of 1% of the amount of any additional tax paid hereunder by
such distributor to the Department during any such year shall

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apply. On and after December 1, 1985, a discount equal to 1.75%
of the amount of the tax payable under this Act up to and
including the first $3,000,000 paid hereunder by such
distributor to the Department during any such year and 1.5% of
the amount of any additional tax paid hereunder by such
distributor to the Department during any such year shall apply.
Two or more distributors that use a common means of
affixing revenue tax stamps or that are owned or controlled by
the same interests shall be treated as a single distributor for
the purpose of computing the discount.
(c) The taxes herein imposed are in addition to all other
occupation or privilege taxes imposed by the State of Illinois,
or by any political subdivision thereof, or by any municipal
corporation.
(Source: P.A. 97-587, eff. 8-26-11; 97-688, eff. 6-14-12;
98-273, eff. 8-9-13.)
Section 60. The Cigarette Use Tax Act is amended by
changing Section 3 as follows:
(35 ILCS 135/3) (from Ch. 120, par. 453.33)
Sec. 3. Stamp payment. The tax hereby imposed shall be
collected by a distributor maintaining a place of business in
this State or a distributor authorized by the Department
pursuant to Section 7 hereof to collect the tax, and the amount
of the tax shall be added to the price of the cigarettes sold

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by such distributor. Collection of the tax shall be evidenced
by a stamp or stamps affixed to each original package of
cigarettes or by an authorized substitute for such stamp
imprinted on each original package of such cigarettes
underneath the sealed transparent outside wrapper of such
original package, except as hereinafter provided. Each
distributor who is required or authorized to collect the tax
herein imposed, before delivering or causing to be delivered
any original packages of cigarettes in this State to any
purchaser, shall firmly affix a proper stamp or stamps to each
such package, or (in the case of manufacturers of cigarettes in
original packages which are contained inside a sealed
transparent wrapper) shall imprint the required language on the
original package of cigarettes beneath such outside wrapper as
hereinafter provided. Such stamp or stamps need not be affixed
to the original package of any cigarettes with respect to which
the distributor is required to affix a like stamp or stamps by
virtue of the Cigarette Tax Act, however, and no tax imprint
need be placed underneath the sealed transparent wrapper of an
original package of cigarettes with respect to which the
distributor is required or authorized to employ a like tax
imprint by virtue of the Cigarette Tax Act. Any distributor who
purchases stamps may credit any excess payments verified by the
Department against amounts subsequently due for the purchase of
additional stamps, until such time as no excess payment
remains.

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No stamp or imprint may be affixed to, or made upon, any
package of cigarettes unless that package complies with all
requirements of the federal Cigarette Labeling and Advertising
Act, 15 U.S.C. 1331 and following, for the placement of labels,
warnings, or any other information upon a package of cigarettes
that is sold within the United States. Under the authority of
Section 6, the Department shall revoke the license of any
distributor that is determined to have violated this paragraph.
A person may not affix a stamp on a package of cigarettes,
cigarette papers, wrappers, or tubes if that individual package
has been marked for export outside the United States with a
label or notice in compliance with Section 290.185 of Title 27
of the Code of Federal Regulations. It is not a defense to a
proceeding for violation of this paragraph that the label or
notice has been removed, mutilated, obliterated, or altered in
any manner.
Only distributors licensed under this Act and
transporters, as defined in Section 9c of the Cigarette Tax
Act, may possess unstamped original packages of cigarettes.
Prior to shipment to an Illinois retailer or secondary
distributor, a stamp shall be applied to each original package
of cigarettes sold to the retailer or secondary distributor. A
distributor may apply a tax stamp only to an original package
of cigarettes purchased or obtained directly from an in-state
maker, manufacturer, or fabricator licensed as a distributor
under Section 4 of this Act or an out-of-state maker,

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manufacturer, or fabricator holding a permit under Section 7 of
this Act. A licensed distributor may ship or otherwise cause to
be delivered unstamped original packages of cigarettes in,
into, or from this State. A licensed distributor may transport
unstamped original packages of cigarettes to a facility,
wherever located, owned or controlled by such distributor;
however, a distributor may not transport unstamped original
packages of cigarettes to a facility where retail sales of
cigarettes take place or to a facility where a secondary
distributor makes sales for resale. Any licensed distributor
that ships or otherwise causes to be delivered unstamped
original packages of cigarettes into, within, or from this
State shall ensure that the invoice or equivalent documentation
and the bill of lading or freight bill for the shipment
identifies the true name and address of the consignor or
seller, the true name and address of the consignee or
purchaser, and the quantity by brand style of the cigarettes so
transported, provided that this Section shall not be construed
as to impose any requirement or liability upon any common or
contract carrier.
Distributors making sales of cigarettes to secondary
distributors shall add the amount of the tax to the price of
the cigarettes sold by the distributors. Secondary
distributors making sales of cigarettes to retailers shall
include the amount of the tax in the price of the cigarettes
sold to retailers. The amount of tax shall not be less than the

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amount of taxes imposed by the State and all local
jurisdictions. The amount of local taxes shall be calculated
based on the location of the retailer's place of business shown
on the retailer's certificate of registration or
sub-registration issued to the retailer pursuant to Section 2a
of the Retailers' Occupation Tax Act. The original packages of
cigarettes sold by the retailer shall bear all the required
stamps, or other indicia, for the taxes included in the price
of cigarettes.
Stamps, when required hereunder, shall be purchased from
the Department, or any person authorized by the Department, by
distributors. On and after July 1, 2003, payment for such
stamps must be made by means of electronic funds transfer. The
Department may refuse to sell stamps to any person who does not
comply with the provisions of this Act. Beginning on June 6,
2002 and through June 30, 2002, persons holding valid licenses
as distributors may purchase cigarette tax stamps up to an
amount equal to 115% of the distributor's average monthly
cigarette tax stamp purchases over the 12 calendar months prior
to June 6, 2002.
Prior to December 1, 1985, the Department shall allow a
distributor 21 days in which to make final payment of the
amount to be paid for such stamps, by allowing the distributor
to make payment for the stamps at the time of purchasing them
with a draft which shall be in such form as the Department
prescribes, and which shall be payable within 21 days

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thereafter: Provided that such distributor has filed with the
Department, and has received the Department's approval of, a
bond, which is in addition to the bond required under Section 4
of this Act, payable to the Department in an amount equal to
80% of such distributor's average monthly tax liability to the
Department under this Act during the preceding calendar year or
$500,000, whichever is less. The bond shall be joint and
several and shall be in the form of a surety company bond in
such form as the Department prescribes, or it may be in the
form of a bank certificate of deposit or bank letter of credit.
The bond shall be conditioned upon the distributor's payment of
the amount of any 21-day draft which the Department accepts
from that distributor for the delivery of stamps to that
distributor under this Act. The distributor's failure to pay
any such draft, when due, shall also make such distributor
automatically liable to the Department for a penalty equal to
25% of the amount of such draft.
On and after December 1, 1985 and until July 1, 2003, the
Department shall allow a distributor 30 days in which to make
final payment of the amount to be paid for such stamps, by
allowing the distributor to make payment for the stamps at the
time of purchasing them with a draft which shall be in such
form as the Department prescribes, and which shall be payable
within 30 days thereafter, and beginning on January 1, 2003 and
thereafter, the draft shall be payable by means of electronic
funds transfer: Provided that such distributor has filed with

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the Department, and has received the Department's approval of,
a bond, which is in addition to the bond required under Section
4 of this Act, payable to the Department in an amount equal to
150% of such distributor's average monthly tax liability to the
Department under this Act during the preceding calendar year or
$750,000, whichever is less, except that as to bonds filed on
or after January 1, 1987, such additional bond shall be in an
amount equal to 100% of such distributor's average monthly tax
liability under this Act during the preceding calendar year or
$750,000, whichever is less. The bond shall be joint and
several and shall be in the form of a surety company bond in
such form as the Department prescribes, or it may be in the
form of a bank certificate of deposit or bank letter of credit.
The bond shall be conditioned upon the distributor's payment of
the amount of any 30-day draft which the Department accepts
from that distributor for the delivery of stamps to that
distributor under this Act. The distributor's failure to pay
any such draft, when due, shall also make such distributor
automatically liable to the Department for a penalty equal to
25% of the amount of such draft.
Every prior continuous compliance taxpayer shall be exempt
from all requirements under this Section concerning the
furnishing of such bond, as defined in this Section, as a
condition precedent to his being authorized to engage in the
business licensed under this Act. This exemption shall continue
for each such taxpayer until such time as he may be determined

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by the Department to be delinquent in the filing of any
returns, or is determined by the Department (either through the
Department's issuance of a final assessment which has become
final under the Act, or by the taxpayer's filing of a return
which admits tax to be due that is not paid) to be delinquent
or deficient in the paying of any tax under this Act, at which
time that taxpayer shall become subject to the bond
requirements of this Section and, as a condition of being
allowed to continue to engage in the business licensed under
this Act, shall be required to furnish bond to the Department
in such form as provided in this Section. Such taxpayer shall
furnish such bond for a period of 2 years, after which, if the
taxpayer has not been delinquent in the filing of any returns,
or delinquent or deficient in the paying of any tax under this
Act, the Department may reinstate such person as a prior
continuance compliance taxpayer. Any taxpayer who fails to pay
an admitted or established liability under this Act may also be
required to post bond or other acceptable security with the
Department guaranteeing the payment of such admitted or
established liability.
Except as otherwise provided in this Section, any person
aggrieved by any decision of the Department under this Section
may, within the time allowed by law, protest and request a
hearing before the Department, whereupon the Department shall
give notice and shall hold a hearing in conformity with the
provisions of this Act and then issue its final administrative

SB3445 - 322 - LRB100 20331 HLH 35618 b
decision in the matter to such person. Effective July 1, 2013,
protests concerning matters that are subject to the
jurisdiction of the Illinois Independent Tax Tribunal shall be
filed in accordance with the Illinois Independent Tax Tribunal
Act of 2012, and hearings concerning those matters shall be
held before the Tribunal in accordance with that Act. With
respect to protests filed with the Department prior to July 1,
2013 that would otherwise be subject to the jurisdiction of the
Illinois Independent Tax Tribunal, the person filing the
protest may elect to be subject to the provisions of the
Illinois Independent Tax Tribunal Act of 2012 at any time on or
after July 1, 2013, but not later than 30 days after the date
on which the protest was filed. If made, the election shall be
irrevocable. In the absence of such a protest filed within the
time allowed by law, the Department's decision shall become
final without any further determination being made or notice
given.
The Department shall discharge any surety and shall release
and return any bond or security deposited, assigned, pledged,
or otherwise provided to it by a taxpayer under this Section
within 30 days after:
(1) such Taxpayer becomes a prior continuous
compliance taxpayer; or
(2) such taxpayer has ceased to collect receipts on
which he is required to remit tax to the Department, has
filed a final tax return, and has paid to the Department an

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amount sufficient to discharge his remaining tax liability
as determined by the Department under this Act. The
Department shall make a final determination of the
taxpayer's outstanding tax liability as expeditiously as
possible after his final tax return has been filed. If the
Department cannot make such final determination within 45
days after receiving the final tax return, within such
period it shall so notify the taxpayer, stating its reasons
therefor.
At the time of purchasing such stamps from the Department
when purchase is required by this Act, or at the time when the
tax which he has collected is remitted by a distributor to the
Department without the purchase of stamps from the Department
when that method of remitting the tax that has been collected
is required or authorized by this Act, the distributor shall be
allowed a discount during any year commencing July 1 and ending
the following June 30 in accordance with the schedule set out
hereinbelow, from the amount to be paid by him to the
Department for such stamps, or to be paid by him to the
Department on the basis of monthly remittances (as the case may
be), to cover the cost, to such distributor, of collecting the
tax herein imposed by affixing such stamps to the original
packages of cigarettes sold by such distributor or by placing
tax imprints underneath the sealed transparent wrapper of
original packages of cigarettes sold by such distributor (as
the case may be): (1) Prior to December 1, 1985, a discount

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equal to 1-2/3% of the amount of the tax up to and including
the first $700,000 paid hereunder by such distributor to the
Department during any such year; 1-1/3% of the next $700,000 of
tax or any part thereof, paid hereunder by such distributor to
the Department during any such year; 1% of the next $700,000 of
tax, or any part thereof, paid hereunder by such distributor to
the Department during any such year; and 2/3 of 1% of the
amount of any additional tax paid hereunder by such distributor
to the Department during any such year or (2) On and after
December 1, 1985, a discount equal to 1.75% of the amount of
the tax payable under this Act up to and including the first
$3,000,000 paid hereunder by such distributor to the Department
during any such year and 1.5% of the amount of any additional
tax paid hereunder by such distributor to the Department during
any such year.
Two or more distributors that use a common means of
affixing revenue tax stamps or that are owned or controlled by
the same interests shall be treated as a single distributor for
the purpose of computing the discount.
Cigarette manufacturers who are distributors under Section
7(a) of this Act, and who place their cigarettes in original
packages which are contained inside a sealed transparent
wrapper, shall be required to remit the tax which they are
required to collect under this Act to the Department by
remitting the amount thereof to the Department by the 5th day
of each month, covering cigarettes shipped or otherwise

SB3445 - 325 - LRB100 20331 HLH 35618 b
delivered to points in Illinois to purchasers during the
preceding calendar month, but a distributor need not remit to
the Department the tax so collected by him from purchasers
under this Act to the extent to which such distributor is
required to remit the tax imposed by the Cigarette Tax Act to
the Department with respect to the same cigarettes. All taxes
upon cigarettes under this Act are a direct tax upon the retail
consumer and shall conclusively be presumed to be precollected
for the purpose of convenience and facility only. Cigarette
manufacturers that are distributors licensed under Section
7(a) of this Act and who place their cigarettes in original
packages which are contained inside a sealed transparent
wrapper, before delivering such cigarettes or causing such
cigarettes to be delivered in this State to purchasers, shall
evidence their obligation to collect and remit the tax due with
respect to such cigarettes by imprinting language to be
prescribed by the Department on each original package of such
cigarettes underneath the sealed transparent outside wrapper
of such original package, in such place thereon and in such
manner as the Department may prescribe; provided (as stated
hereinbefore) that this requirement does not apply when such
distributor is required or authorized by the Cigarette Tax Act
to place the tax imprint provided for in the last paragraph of
Section 3 of that Act underneath the sealed transparent wrapper
of such original package of cigarettes. Such imprinted language
shall acknowledge the manufacturer's collection and payment of

SB3445 - 326 - LRB100 20331 HLH 35618 b
or liability for the tax imposed by this Act with respect to
such cigarettes.
The Department shall adopt the design or designs of the tax
stamps and shall procure the printing of such stamps in such
amounts and denominations as it deems necessary to provide for
the affixation of the proper amount of tax stamps to each
original package of cigarettes.
Where tax stamps are required, the Department may authorize
distributors to affix revenue tax stamps by imprinting tax
meter stamps upon original packages of cigarettes. The
Department shall adopt rules and regulations relating to the
imprinting of such tax meter stamps as will result in payment
of the proper taxes as herein imposed. No distributor may affix
revenue tax stamps to original packages of cigarettes by
imprinting meter stamps thereon unless such distributor has
first obtained permission from the Department to employ this
method of affixation. The Department shall regulate the use of
tax meters and may, to assure the proper collection of the
taxes imposed by this Act, revoke or suspend the privilege,
theretofore granted by the Department to any distributor, to
imprint tax meter stamps upon original packages of cigarettes.
The tax hereby imposed and not paid pursuant to this
Section shall be paid to the Department directly by any person
using such cigarettes within this State, pursuant to Section 12
hereof.
A distributor shall not affix, or cause to be affixed, any

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stamp or imprint to a package of cigarettes, as provided for in
this Section, if the tobacco product manufacturer, as defined
in Section 10 of the Tobacco Product Manufacturers' Escrow Act,
that made or sold the cigarettes has failed to become a
participating manufacturer, as defined in subdivision (a)(1)
of Section 15 of the Tobacco Product Manufacturers' Escrow Act,
or has failed to create a qualified escrow fund for any
cigarettes manufactured by the tobacco product manufacturer
and sold in this State or otherwise failed to bring itself into
compliance with subdivision (a)(2) of Section 15 of the Tobacco
Product Manufacturers' Escrow Act.
(Source: P.A. 96-782, eff. 1-1-10; 96-1027, eff. 7-12-10;
97-1129, eff. 8-28-12.)
Section 65. The Tobacco Products Tax Act of 1995 is amended
by changing Section 10-30 as follows:
(35 ILCS 143/10-30)
Sec. 10-30. Returns.
(a) Every distributor shall, on or before the 15th day of
each month, file a return with the Department covering the
preceding calendar month. The return shall disclose the
wholesale price for all tobacco products other than moist snuff
and the quantity in ounces of moist snuff sold or otherwise
disposed of and other information that the Department may
reasonably require. The return shall be filed upon a form

SB3445 - 328 - LRB100 20331 HLH 35618 b
prescribed and furnished by the Department.
(b) In addition to the information required under
subsection (a), on or before the 15th day of each month,
covering the preceding calendar month, each stamping
distributor shall, on forms prescribed and furnished by the
Department, report the quantity of little cigars sold or
otherwise disposed of, including the number of packages of
little cigars sold or disposed of during the month containing
20 or 25 little cigars.
(c) At the time when any return of any distributor is due
to be filed with the Department, the distributor shall also
remit to the Department the tax liability that the distributor
has incurred for transactions occurring in the preceding
calendar month.
(d) The Department may adopt rules to require the
electronic filing of any return or document required to be
filed under this Act. Those rules may provide for exceptions
from the filing requirement set forth in this paragraph for
persons who demonstrate that they do not have access to the
Internet and petition the Department to waive the electronic
filing requirement.
(e) If any payment provided for in this Section exceeds the
distributor's liabilities under this Act, as shown on an
original return, the distributor may credit such excess payment
against liability subsequently to be remitted to the Department
under this Act, in accordance with reasonable rules adopted by

SB3445 - 329 - LRB100 20331 HLH 35618 b
the Department.
(Source: P.A. 97-688, eff. 6-14-12; 98-273, eff. 8-9-13.)
Section 70. The Hotel Operators' Occupation Tax Act is
amended by changing Section 6 as follows:
(35 ILCS 145/6) (from Ch. 120, par. 481b.36)
Sec. 6. Filing of returns and distribution of proceeds.
Except as provided hereinafter in this Section, on or
before the last day of each calendar month, every person
engaged in the business of renting, leasing or letting rooms in
a hotel in this State during the preceding calendar month shall
file a return with the Department, stating:
1. The name of the operator;
2. His residence address and the address of his
principal place of business and the address of the
principal place of business (if that is a different
address) from which he engages in the business of renting,
leasing or letting rooms in a hotel in this State;
3. Total amount of rental receipts received by him
during the preceding calendar month from renting, leasing
or letting rooms during such preceding calendar month;
4. Total amount of rental receipts received by him
during the preceding calendar month from renting, leasing
or letting rooms to permanent residents during such
preceding calendar month;

SB3445 - 330 - LRB100 20331 HLH 35618 b
5. Total amount of other exclusions from gross rental
receipts allowed by this Act;
6. Gross rental receipts which were received by him
during the preceding calendar month and upon the basis of
which the tax is imposed;
7. The amount of tax due;
8. Such other reasonable information as the Department
may require.
If the operator's average monthly tax liability to the
Department does not exceed $200, the Department may authorize
his returns to be filed on a quarter annual basis, with the
return for January, February and March of a given year being
due by April 30 of such year; with the return for April, May
and June of a given year being due by July 31 of such year; with
the return for July, August and September of a given year being
due by October 31 of such year, and with the return for
October, November and December of a given year being due by
January 31 of the following year.
If the operator's average monthly tax liability to the
Department does not exceed $50, the Department may authorize
his returns to be filed on an annual basis, with the return for
a given year being due by January 31 of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
Notwithstanding any other provision in this Act concerning

SB3445 - 331 - LRB100 20331 HLH 35618 b
the time within which an operator may file his return, in the
case of any operator who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such operator shall file a final return under this Act with the
Department not more than 1 month after discontinuing such
business.
Where the same person has more than 1 business registered
with the Department under separate registrations under this
Act, such person shall not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
In his return, the operator shall determine the value of
any consideration other than money received by him in
connection with the renting, leasing or letting of rooms in the
course of his business and he shall include such value in his
return. Such determination shall be subject to review and
revision by the Department in the manner hereinafter provided
for the correction of returns.
Where the operator is a corporation, the return filed on
behalf of such corporation shall be signed by the president,
vice-president, secretary or treasurer or by the properly
accredited agent of such corporation.
The person filing the return herein provided for shall, at
the time of filing such return, pay to the Department the
amount of tax herein imposed. The operator filing the return
under this Section shall, at the time of filing such return,

SB3445 - 332 - LRB100 20331 HLH 35618 b
pay to the Department the amount of tax imposed by this Act
less a discount of 2.1% or $25 per calendar year, whichever is
greater, which is allowed to reimburse the operator for the
expenses incurred in keeping records, preparing and filing
returns, remitting the tax and supplying data to the Department
on request.
If any payment provided for in this Section exceeds the
operator's liabilities under this Act, as shown on an original
return, the Department may authorize the operator to credit
such excess payment against liability subsequently to be
remitted to the Department under this Act, in accordance with
reasonable rules adopted by the Department. If the Department
subsequently determines that all or any part of the credit
taken was not actually due to the operator, the operator's
discount shall be reduced by an amount equal to the difference
between the discount as applied to the credit taken and that
actually due, and that operator shall be liable for penalties
and interest on such difference.
There shall be deposited in the Build Illinois Fund in the
State Treasury for each State fiscal year 40% of the amount of
total net proceeds from the tax imposed by subsection (a) of
Section 3. Of the remaining 60%, $5,000,000 shall be deposited
in the Illinois Sports Facilities Fund and credited to the
Subsidy Account each fiscal year by making monthly deposits in
the amount of 1/8 of $5,000,000 plus cumulative deficiencies in
such deposits for prior months, and an additional $8,000,000

SB3445 - 333 - LRB100 20331 HLH 35618 b
shall be deposited in the Illinois Sports Facilities Fund and
credited to the Advance Account each fiscal year by making
monthly deposits in the amount of 1/8 of $8,000,000 plus any
cumulative deficiencies in such deposits for prior months;
provided, that for fiscal years ending after June 30, 2001, the
amount to be so deposited into the Illinois Sports Facilities
Fund and credited to the Advance Account each fiscal year shall
be increased from $8,000,000 to the then applicable Advance
Amount and the required monthly deposits beginning with July
2001 shall be in the amount of 1/8 of the then applicable
Advance Amount plus any cumulative deficiencies in those
deposits for prior months. (The deposits of the additional
$8,000,000 or the then applicable Advance Amount, as
applicable, during each fiscal year shall be treated as
advances of funds to the Illinois Sports Facilities Authority
for its corporate purposes to the extent paid to the Authority
or its trustee and shall be repaid into the General Revenue
Fund in the State Treasury by the State Treasurer on behalf of
the Authority pursuant to Section 19 of the Illinois Sports
Facilities Authority Act, as amended. If in any fiscal year the
full amount of the then applicable Advance Amount is not repaid
into the General Revenue Fund, then the deficiency shall be
paid from the amount in the Local Government Distributive Fund
that would otherwise be allocated to the City of Chicago under
the State Revenue Sharing Act.)
For purposes of the foregoing paragraph, the term "Advance

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Amount" means, for fiscal year 2002, $22,179,000, and for
subsequent fiscal years through fiscal year 2032, 105.615% of
the Advance Amount for the immediately preceding fiscal year,
rounded up to the nearest $1,000.
Of the remaining 60% of the amount of total net proceeds
prior to August 1, 2011 from the tax imposed by subsection (a)
of Section 3 after all required deposits in the Illinois Sports
Facilities Fund, the amount equal to 8% of the net revenue
realized from this Act plus an amount equal to 8% of the net
revenue realized from any tax imposed under Section 4.05 of the
Chicago World's Fair-1992 Authority Act during the preceding
month shall be deposited in the Local Tourism Fund each month
for purposes authorized by Section 605-705 of the Department of
Commerce and Economic Opportunity Law (20 ILCS 605/605-705). Of
the remaining 60% of the amount of total net proceeds beginning
on August 1, 2011 from the tax imposed by subsection (a) of
Section 3 after all required deposits in the Illinois Sports
Facilities Fund, an amount equal to 8% of the net revenue
realized from this Act plus an amount equal to 8% of the net
revenue realized from any tax imposed under Section 4.05 of the
Chicago World's Fair-1992 Authority Act during the preceding
month shall be deposited as follows: 18% of such amount shall
be deposited into the Chicago Travel Industry Promotion Fund
for the purposes described in subsection (n) of Section 5 of
the Metropolitan Pier and Exposition Authority Act and the
remaining 82% of such amount shall be deposited into the Local

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Tourism Fund each month for purposes authorized by Section
605-705 of the Department of Commerce and Economic Opportunity
Law. Beginning on August 1, 1999 and ending on July 31, 2011,
an amount equal to 4.5% of the net revenue realized from the
Hotel Operators' Occupation Tax Act during the preceding month
shall be deposited into the International Tourism Fund for the
purposes authorized in Section 605-707 of the Department of
Commerce and Economic Opportunity Law. Beginning on August 1,
2011, an amount equal to 4.5% of the net revenue realized from
this Act during the preceding month shall be deposited as
follows: 55% of such amount shall be deposited into the Chicago
Travel Industry Promotion Fund for the purposes described in
subsection (n) of Section 5 of the Metropolitan Pier and
Exposition Authority Act and the remaining 45% of such amount
deposited into the International Tourism Fund for the purposes
authorized in Section 605-707 of the Department of Commerce and
Economic Opportunity Law. "Net revenue realized for a month"
means the revenue collected by the State under that Act during
the previous month less the amount paid out during that same
month as refunds to taxpayers for overpayment of liability
under that Act.
After making all these deposits, all other proceeds of the
tax imposed under subsection (a) of Section 3 shall be
deposited in the Tourism Promotion Fund in the State Treasury.
All moneys received by the Department from the additional tax
imposed under subsection (b) of Section 3 shall be deposited

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into the Build Illinois Fund in the State Treasury.
The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.
Such annual return to the Department shall include a statement
of gross receipts as shown by the operator's last State income
tax return. If the total receipts of the business as reported
in the State income tax return do not agree with the gross
receipts reported to the Department for the same period, the
operator shall attach to his annual information return a
schedule showing a reconciliation of the 2 amounts and the
reasons for the difference. The operator's annual information
return to the Department shall also disclose pay roll
information of the operator's business during the year covered
by such return and any additional reasonable information which
the Department deems would be helpful in determining the
accuracy of the monthly, quarterly or annual tax returns by
such operator as hereinbefore provided for in this Section.
If the annual information return required by this Section
is not filed when and as required the taxpayer shall be liable
for a penalty in an amount determined in accordance with
Section 3-4 of the Uniform Penalty and Interest Act until such
return is filed as required, the penalty to be assessed and
collected in the same manner as any other penalty provided for

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in this Act.
The chief executive officer, proprietor, owner or highest
ranking manager shall sign the annual return to certify the
accuracy of the information contained therein. Any person who
willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and punished
accordingly. The annual return form prescribed by the
Department shall include a warning that the person signing the
return may be liable for perjury.
The foregoing portion of this Section concerning the filing
of an annual information return shall not apply to an operator
who is not required to file an income tax return with the
United States Government.
(Source: P.A. 100-23, eff. 7-6-17.)
Section 75. The Live Adult Entertainment Facility
Surcharge Act is amended by changing Section 10 as follows:
(35 ILCS 175/10)
Sec. 10. Surcharge imposed; returns.
(a) An annual surcharge is imposed upon each operator who
operates a live adult entertainment facility in this State. By
January 20, 2014, and by January 20 of each year thereafter,
each operator shall elect to pay the surcharge according to
either item (1) or item (2) of this subsection.
(1) An operator who elects to be subject to this item

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(1) shall pay to the Department a surcharge imposed upon
admissions to a live adult entertainment facility operated
by the operator in this State in an amount equal to $3 per
person admitted to that live adult entertainment facility.
This item (1) does not require a live entertainment
facility to impose a fee on a customer of the facility. An
operator has the discretion to determine the manner in
which the facility derives the moneys required to pay the
surcharge imposed under this Section. In the event that an
operator has not filed the applicable returns under the
Retailers' Occupation Tax Act for a full calendar year
prior to any January 20, then such operator shall pay the
surcharge under this Act pursuant to this item (1) for
moneys owed to the Department subject to this Act for the
previous calendar year.
(2) An operator may, in the alternative, pay to the
Department the surcharge as follows:
(A) If the gross receipts received by the live
adult entertainment facility during the preceding
calendar year, upon the basis of which a tax is imposed
under Section 2 of the Retailers' Occupation Tax Act,
are equal or greater than $2,000,000 during the
preceding calendar year, and if the operator elects to
be subject to this item (2), then the operator shall
pay the Department a surcharge of $25,000.
(B) If the gross receipts received by the live

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adult entertainment facility during the preceding
calendar year, upon the basis of which a tax is imposed
under Section 2 of the Retailers' Occupation Tax Act,
are equal to or greater than $500,000 but less than
$2,000,000 during the preceding calendar year, and if
the operator elects to be subject to this item (2),
then the operator shall pay to the Department a
surcharge of $15,000.
(C) If the gross receipts received by the live
adult entertainment facility during the preceding
calendar year, upon the basis of which a tax is imposed
under Section 2 of the Retailers' Occupation Tax Act,
are less than $500,000 during the preceding calendar
year, and if the operator elects to be subject to this
item (2), then the operator shall pay the Department a
surcharge of $5,000.
(b) For each live adult entertainment facility paying the
surcharge as set forth in item (1) of subsection (a) of this
Section, the operator must file a return electronically as
provided by the Department and remit payment to the Department
on an annual basis no later than January 20 covering the
previous calendar year. Each return made to the Department must
state the following:
(1) the name of the operator;
(2) the address of the live adult entertainment
facility and the address of the principal place of business

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(if that is a different address) of the operator;
(3) the total number of admissions to the facility in
the preceding calendar year; and
(4) the total amount of surcharge collected in the
preceding calendar year.
Notwithstanding any other provision of this subsection
concerning the time within which an operator may file his or
her return, if an operator ceases to operate a live adult
entertainment facility, then he or she must file a final return
under this Act with the Department not more than one calendar
month after discontinuing that business.
(c) For each live adult entertainment facility paying the
surcharge as set forth in item (2) of subsection (a) of this
Section, the operator must file a return electronically as
provided by the Department and remit payment to the Department
on an annual basis no later than January 20 covering the
previous calendar year. Each return made to the Department must
state the following:
(1) the name of the operator;
(2) the address of the live adult entertainment
facility and the address of the principal place of business
(if that is a different address) of the operator;
(3) the gross receipts received by the live adult
entertainment facility during the preceding calendar year,
upon the basis of which tax is imposed under Section 2 of
the Retailers' Occupation Tax Act; and

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(4) the applicable surcharge from Section 10(a)(2) of
this Act to be paid by the operator.
Notwithstanding any other provision of this subsection
concerning the time within which an operator may file his or
her return, if an operator ceases to operate a live adult
entertainment facility, then he or she must file a final return
under this Act with the Department not more than one calendar
month after discontinuing that business.
(d) Beginning January 1, 2014, the Department shall pay all
proceeds collected from the surcharge imposed under this Act
into the Sexual Assault Services and Prevention Fund, less 2%
of those proceeds, which shall be paid into the Tax Compliance
and Administration Fund in the State treasury from which it
shall be appropriated to the Department to cover the costs of
the Department in administering and enforcing the provisions of
this Act.
(e) If any payment provided for in this Section exceeds the
operator's liabilities under this Act, as shown on an original
return, the operator may credit such excess payment against
liability subsequently to be remitted to the Department under
this Act, in accordance with reasonable rules adopted by the
Department.
(Source: P.A. 97-1035, eff. 1-1-13.)
Section 80. The Illinois Hydraulic Fracturing Tax Act is
amended by changing Sections 2-45 and 2-50 as follows:

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(35 ILCS 450/2-45)
Sec. 2-45. Purchaser's return and tax remittance. Each
purchaser shall make a return to the Department showing the
quantity of oil or gas purchased during the month for which the
return is filed, the price paid therefor, total value, the name
and address of the operator or other person from whom the same
was purchased, a description of the production unit in the
manner prescribed by the Department from which such oil or gas
was severed and the amount of tax due from each production unit
for each calendar month. All taxes due, or to be remitted, by
the purchaser shall accompany this return. The return shall be
filed on or before the last day of the month after the calendar
month for which the return is required. The Department shall
forward the necessary information to each Chief County
Assessment Officer for the administration and application of ad
valorem real property taxes at the county level. This
information shall be forwarded to the Chief County Assessment
Officers in a yearly summary before March 1 of the following
calendar year. The Department may require any additional report
or information it may deem necessary for the proper
administration of this Act.
Such returns shall be filed electronically in the manner
prescribed by the Department. Purchasers shall make all
payments of that tax to the Department by electronic funds
transfer unless, as provided by rule, the Department grants an

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exception upon petition of a purchaser. Purchasers' returns
must be accompanied by appropriate computer generated magnetic
media supporting schedule data in the format required by the
Department, unless, as provided by rule, the Department grants
an exception upon petition of a purchaser.
If any payment provided for in this Section exceeds the
purchaser's liabilities under this Act, as shown on an original
return, the purchaser may credit such excess payment against
liability subsequently to be remitted to the Department under
this Act, in accordance with reasonable rules adopted by the
Department.
(Source: P.A. 98-22, eff. 6-17-13; 98-23, eff. 6-17-13; 98-756,
eff. 7-16-14.)
(35 ILCS 450/2-50)
Sec. 2-50. Operator returns; payment of tax.
(a) If, on or after July 1, 2013, oil or gas is transported
off the production unit where severed by the operator, used on
the production unit where severed, or if the manufacture and
conversion of oil and gas into refined products occurs on the
production unit where severed, the operator is responsible for
remitting the tax imposed under subsection (a) of Section 2-15,
on or before the last day of the month following the end of the
calendar month in which the oil and gas is removed from the
production unit, and such payment shall be accompanied by a
return to the Department showing the gross quantity of oil or

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gas removed during the month for which the return is filed, the
price paid therefor, and if no price is paid therefor, the
value of the oil and gas, a description of the production unit
from which such oil or gas was severed, and the amount of tax.
The Department may require any additional information it may
deem necessary for the proper administration of this Act.
(b) Operators shall file all returns electronically in the
manner prescribed by the Department unless, as provided by
rule, the Department grants an exception upon petition of an
operator. Operators shall make all payments of that tax to the
Department by electronic funds transfer unless, as provided by
rule, the Department grants an exception upon petition of an
operator. Operators' returns must be accompanied by
appropriate computer generated magnetic media supporting
schedule data in the format required by the Department, unless,
as provided by rule, the Department grants an exception upon
petition of a purchaser.
(c) Any operator who makes a monetary payment to a producer
for his or her portion of the value of products from a
production unit shall withhold from such payment the amount of
tax due from the producer. Any operator who pays any tax due
from a producer shall be entitled to reimbursement from the
producer for the tax so paid and may take credit for such
amount from any monetary payment to the producer for the value
of products. To the extent that an operator required to collect
the tax imposed by this Act has actually collected that tax,

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such tax is held in trust for the benefit of the State of
Illinois.
(d) In the event the operator fails to make payment of the
tax to the State as required herein, the operator shall be
liable for the tax. A producer shall be entitled to bring an
action against such operator to recover the amount of tax so
withheld together with penalties and interest which may have
accrued by failure to make such payment. A producer shall be
entitled to all attorney fees and court costs incurred in such
action. To the extent that a producer liable for the tax
imposed by this Act collects the tax, and any penalties and
interest, from an operator, such tax, penalties, and interest
are held in trust by the producer for the benefit of the State
of Illinois.
(e) When the title to any oil or gas severed from the earth
or water is in dispute and the operator of such oil or gas is
withholding payments on account of litigation, or for any other
reason, such operator is hereby authorized, empowered and
required to deduct from the gross amount thus held the amount
of the tax imposed and to make remittance thereof to the
Department as provided in this Section.
(f) An operator required to file a return and pay the tax
under this Section shall register with the Department.
Application for a certificate of registration shall be made to
the Department upon forms furnished by the Department and shall
contain any reasonable information the Department may require.

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Upon receipt of the application for a certificate of
registration in proper form, the Department shall issue to the
applicant a certificate of registration.
(g) If oil or gas is transported off the production unit
where severed by the operator and sold to a purchaser or
refiner, the State shall have a lien on all the oil or gas
severed from the production unit in this State in the hands of
the operator, the first or any subsequent purchaser thereof, or
refiner to secure the payment of the tax. If a lien is filed by
the Department, the purchaser or refiner shall withhold from
the operator the amount of tax, penalty and interest identified
in the lien.
(h) If any payment provided for in this Section exceeds the
operator's liabilities under this Act, as shown on an original
return, the operator may credit such excess payment against
liability subsequently to be remitted to the Department under
this Act, in accordance with reasonable rules adopted by the
Department.
(Source: P.A. 98-22, eff. 6-17-13; 98-756, eff. 7-16-14.)
Section 83. The Motor Fuel Tax Law is amended by changing
Sections 2b, 5, 5a, 13, 13a.4, and 13a.5 as follows:
(35 ILCS 505/2b) (from Ch. 120, par. 418b)
Sec. 2b. Receiver's monthly return. In addition to the tax
collection and reporting responsibilities imposed elsewhere in

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this Act, a person who is required to pay the tax imposed by
Section 2a of this Act shall pay the tax to the Department by
return showing all fuel purchased, acquired or received and
sold, distributed or used during the preceding calendar month
including losses of fuel as the result of evaporation or
shrinkage due to temperature variations, and such other
reasonable information as the Department may require. Losses of
fuel as the result of evaporation or shrinkage due to
temperature variations may not exceed 1% of the total gallons
in storage at the beginning of the month, plus the receipts of
gallonage during the month, minus the gallonage remaining in
storage at the end of the month. Any loss reported that is in
excess of this amount shall be subject to the tax imposed by
Section 2a of this Law. On and after July 1, 2001, for each
6-month period January through June, net losses of fuel (for
each category of fuel that is required to be reported on a
return) as the result of evaporation or shrinkage due to
temperature variations may not exceed 1% of the total gallons
in storage at the beginning of each January, plus the receipts
of gallonage each January through June, minus the gallonage
remaining in storage at the end of each June. On and after July
1, 2001, for each 6-month period July through December, net
losses of fuel (for each category of fuel that is required to
be reported on a return) as the result of evaporation or
shrinkage due to temperature variations may not exceed 1% of
the total gallons in storage at the beginning of each July,

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plus the receipts of gallonage each July through December,
minus the gallonage remaining in storage at the end of each
December. Any net loss reported that is in excess of this
amount shall be subject to the tax imposed by Section 2a of
this Law. For purposes of this Section, "net loss" means the
number of gallons gained through temperature variations minus
the number of gallons lost through temperature variations or
evaporation for each of the respective 6-month periods.
The return shall be prescribed by the Department and shall
be filed between the 1st and 20th days of each calendar month.
The Department may, in its discretion, combine the returns
filed under this Section, Section 5, and Section 5a of this
Act. The return must be accompanied by appropriate
computer-generated magnetic media supporting schedule data in
the format required by the Department, unless, as provided by
rule, the Department grants an exception upon petition of a
taxpayer. If the return is filed timely, the seller shall take
a discount of 2% through June 30, 2003 and 1.75% thereafter
which is allowed to reimburse the seller for the expenses
incurred in keeping records, preparing and filing returns,
collecting and remitting the tax and supplying data to the
Department on request. The discount, however, shall be
applicable only to the amount of payment which accompanies a
return that is filed timely in accordance with this Section.
If any payment provided for in this Section exceeds the
receiver's liabilities under this Act, as shown on an original

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return, the Department may authorize the receiver to credit
such excess payment against liability subsequently to be
remitted to the Department under this Act, in accordance with
reasonable rules adopted by the Department. If the Department
subsequently determines that all or any part of the credit
taken was not actually due to the receiver, the receiver's
discount shall be reduced by an amount equal to the difference
between the discount as applied to the credit taken and that
actually due, and that receiver shall be liable for penalties
and interest on such difference.
(Source: P.A. 92-30, eff. 7-1-01; 93-32, eff. 6-20-03.)
(35 ILCS 505/5) (from Ch. 120, par. 421)
Sec. 5. Distributor's monthly return.Except as hereinafter
provided, a person holding a valid unrevoked license to act as
a distributor of motor fuel shall, between the 1st and 20th
days of each calendar month, make return to the Department,
showing an itemized statement of the number of invoiced gallons
of motor fuel of the types specified in this Section which were
purchased, acquired, received, or exported during the
preceding calendar month; the amount of such motor fuel
produced, refined, compounded, manufactured, blended, sold,
distributed, exported, and used by the licensed distributor
during the preceding calendar month; the amount of such motor
fuel lost or destroyed during the preceding calendar month; the
amount of such motor fuel on hand at the close of business for

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such month; and such other reasonable information as the
Department may require. If a distributor's only activities with
respect to motor fuel are either: (1) production of alcohol in
quantities of less than 10,000 proof gallons per year or (2)
blending alcohol in quantities of less than 10,000 proof
gallons per year which such distributor has produced, he shall
file returns on an annual basis with the return for a given
year being due by January 20 of the following year.
Distributors whose total production of alcohol (whether
blended or not) exceeds 10,000 proof gallons per year, based on
production during the preceding (calendar) year or as
reasonably projected by the Department if one calendar year's
record of production cannot be established, shall file returns
between the 1st and 20th days of each calendar month as
hereinabove provided.
The types of motor fuel referred to in the preceding
paragraph are: (A) All products commonly or commercially known
or sold as gasoline (including casing-head and absorption or
natural gasoline), gasohol, motor benzol or motor benzene
regardless of their classification or uses; and (B) all
combustible gases, not including liquefied natural gas, which
exist in a gaseous state at 60 degrees Fahrenheit and at 14.7
pounds per square inch absolute including, but not limited to,
liquefied petroleum gases used for highway purposes; and (C)
special fuel. Only those quantities of combustible gases
(example (B) above) which are used or sold by the distributor

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to be used to propel motor vehicles on the public highways, or
which are delivered into a storage tank that is located at a
facility that has withdrawal facilities which are readily
accessible to and are capable of dispensing combustible gases
into the fuel supply tanks of motor vehicles, shall be subject
to return. Distributors of liquefied natural gas are not
required to make returns under this Section with respect to
that liquefied natural gas unless (i) the liquefied natural gas
is dispensed into the fuel supply tank of any motor vehicle or
(ii) the liquefied natural gas is delivered into a storage tank
that is located at a facility that has withdrawal facilities
which are readily accessible to and are capable of dispensing
liquefied natural gas into the fuel supply tanks of motor
vehicles. For purposes of this Section, a facility is
considered to have withdrawal facilities that are not "readily
accessible to and capable of dispensing combustible gases into
the fuel supply tanks of motor vehicles" only if the
combustible gases or liquefied natural gas are delivered from:
(i) a dispenser hose that is short enough so that it will not
reach the fuel supply tank of a motor vehicle or (ii) a
dispenser that is enclosed by a fence or other physical barrier
so that a vehicle cannot pull alongside the dispenser to permit
fueling. For the purposes of this Act, liquefied petroleum
gases shall mean and include any material having a vapor
pressure not exceeding that allowed for commercial propane
composed predominantly of the following hydrocarbons, either

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by themselves or as mixtures: Propane, Propylene, Butane
(normal butane or iso-butane) and Butylene (including
isomers).
In case of a sale of special fuel to someone other than a
licensed distributor, or a licensed supplier, for a use other
than in motor vehicles, the distributor shall show in his
return the amount of invoiced gallons sold and the name and
address of the purchaser in addition to any other information
the Department may require.
All special fuel sold or used for non-highway purposes must
have a dye added in accordance with Section 4d of this Law.
In case of a tax-free sale, as provided in Section 6, of
motor fuel which the distributor is required by this Section to
include in his return to the Department, the distributor in his
return shall show: (1) If the sale is made to another licensed
distributor the amount sold and the name, address and license
number of the purchasing distributor; (2) if the sale is made
to a person where delivery is made outside of this State the
name and address of such purchaser and the point of delivery
together with the date and amount delivered; (3) if the sale is
made to the Federal Government or its instrumentalities the
amount sold; (4) if the sale is made to a municipal corporation
owning and operating a local transportation system for public
service in this State the name and address of such purchaser,
and the amount sold, as evidenced by official forms of
exemption certificates properly executed and furnished by such

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purchaser; (5) if the sale is made to a privately owned public
utility owning and operating 2-axle vehicles designed and used
for transporting more than 7 passengers, which vehicles are
used as common carriers in general transportation of
passengers, are not devoted to any specialized purpose and are
operated entirely within the territorial limits of a single
municipality or of any group of contiguous municipalities or in
a close radius thereof, and the operations of which are subject
to the regulations of the Illinois Commerce Commission, then
the name and address of such purchaser and the amount sold as
evidenced by official forms of exemption certificates properly
executed and furnished by the purchaser; (6) if the product
sold is special fuel and if the sale is made to a licensed
supplier under conditions which qualify the sale for tax
exemption under Section 6 of this Act, the amount sold and the
name, address and license number of the purchaser; and (7) if a
sale of special fuel is made to someone other than a licensed
distributor, or a licensed supplier, for a use other than in
motor vehicles, by making a specific notation thereof on the
invoice or sales slip covering such sales and obtaining such
supporting documentation as may be required by the Department.
All special fuel sold or used for non-highway purposes must
have a dye added in accordance with Section 4d of this Law.
A person whose license to act as a distributor of motor
fuel has been revoked shall make a return to the Department
covering the period from the date of the last return to the

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date of the revocation of the license, which return shall be
delivered to the Department not later than 10 days from the
date of the revocation or termination of the license of such
distributor; the return shall in all other respects be subject
to the same provisions and conditions as returns by
distributors licensed under the provisions of this Act.
The records, waybills and supporting documents kept by
railroads and other common carriers in the regular course of
business shall be prima facie evidence of the contents and
receipt of cars or tanks covered by those records, waybills or
supporting documents.
If the Department has reason to believe and does believe
that the amount shown on the return as purchased, acquired,
received, exported, sold, used, lost or destroyed is incorrect,
or that an amount of motor fuel of the types required by the
second paragraph of this Section to be reported to the
Department has not been correctly reported the Department shall
fix an amount for such receipt, sales, export, use, loss or
destruction according to its best judgment and information,
which amount so fixed by the Department shall be prima facie
correct. All returns shall be made on forms prepared and
furnished by the Department, and shall contain such other
information as the Department may reasonably require. The
return must be accompanied by appropriate computer-generated
magnetic media supporting schedule data in the format required
by the Department, unless, as provided by rule, the Department

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grants an exception upon petition of a taxpayer. All licensed
distributors shall report all losses of motor fuel sustained on
account of fire, theft, spillage, spoilage, leakage, or any
other provable cause when filing the return for the period
during which the loss occurred. If the distributor reports
losses due to fire or theft, then the distributor must include
fire department or police department reports and any other
documentation that the Department may require. The mere making
of the report does not assure the allowance of the loss as a
reduction in tax liability. Losses of motor fuel as the result
of evaporation or shrinkage due to temperature variations may
not exceed 1% of the total gallons in storage at the beginning
of the month, plus the receipts of gallonage during the month,
minus the gallonage remaining in storage at the end of the
month. Any loss reported that is in excess of 1% shall be
subject to the tax imposed by Section 2 of this Law. On and
after July 1, 2001, for each 6-month period January through
June, net losses of motor fuel (for each category of motor fuel
that is required to be reported on a return) as the result of
evaporation or shrinkage due to temperature variations may not
exceed 1% of the total gallons in storage at the beginning of
each January, plus the receipts of gallonage each January
through June, minus the gallonage remaining in storage at the
end of each June. On and after July 1, 2001, for each 6-month
period July through December, net losses of motor fuel (for
each category of motor fuel that is required to be reported on

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a return) as the result of evaporation or shrinkage due to
temperature variations may not exceed 1% of the total gallons
in storage at the beginning of each July, plus the receipts of
gallonage each July through December, minus the gallonage
remaining in storage at the end of each December. Any net loss
reported that is in excess of this amount shall be subject to
the tax imposed by Section 2 of this Law. For purposes of this
Section, "net loss" means the number of gallons gained through
temperature variations minus the number of gallons lost through
temperature variations or evaporation for each of the
respective 6-month periods.
If any payment provided for in this Section exceeds the
distributor's liabilities under this Act, as shown on an
original return, the Department may authorize the distributor
to credit such excess payment against liability subsequently to
be remitted to the Department under this Act, in accordance
with reasonable rules adopted by the Department. If the
Department subsequently determines that all or any part of the
credit taken was not actually due to the distributor, the
distributor's discount shall be reduced by an amount equal to
the difference between the discount as applied to the credit
taken and that actually due, and that distributor shall be
liable for penalties and interest on such difference.
(Source: P.A. 100-9, eff. 7-1-17.)
(35 ILCS 505/5a) (from Ch. 120, par. 421a)

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Sec. 5a. Supplier's monthly return. A person holding a
valid unrevoked license to act as a supplier of special fuel
shall, between the 1st and 20th days of each calendar month,
make return to the Department showing an itemized statement of
the number of invoiced gallons of special fuel acquired,
received, purchased, sold, exported, or used during the
preceding calendar month; the amount of special fuel sold,
distributed, exported, and used by the licensed supplier during
the preceding calendar month; the amount of special fuel lost
or destroyed during the preceding calendar month; the amount of
special fuel on hand at the close of business for the preceding
calendar month; and such other reasonable information as the
Department may require.
A person whose license to act as a supplier of special fuel
has been revoked shall make a return to the Department covering
the period from the date of the last return to the date of the
revocation of the license, which return shall be delivered to
the Department not later than 10 days from the date of the
revocation or termination of the license of such supplier. The
return shall in all other respects be subject to the same
provisions and conditions as returns by suppliers licensed
under this Act.
The records, waybills and supporting documents kept by
railroads and other common carriers in the regular course of
business shall be prima facie evidence of the contents and
receipt of cars or tanks covered by those records, waybills or

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supporting documents.
If the Department has reason to believe and does believe
that the amount shown on the return as purchased, acquired,
received, sold, exported, used, or lost is incorrect, or that
an amount of special fuel of the type required by the 1st
paragraph of this Section to be reported to the Department by
suppliers has not been correctly reported as a purchase,
receipt, sale, use, export, or loss the Department shall fix an
amount for such purchase, receipt, sale, use, export, or loss
according to its best judgment and information, which amount so
fixed by the Department shall be prima facie correct. All
licensed suppliers shall report all losses of special fuel
sustained on account of fire, theft, spillage, spoilage,
leakage, or any other provable cause when filing the return for
the period during which the loss occurred. If the supplier
reports losses due to fire or theft, then the supplier must
include fire department or police department reports and any
other documentation that the Department may require. The mere
making of the report does not assure the allowance of the loss
as a reduction in tax liability. Losses of special fuel as the
result of evaporation or shrinkage due to temperature
variations may not exceed 1% of the total gallons in storage at
the beginning of the month, plus the receipts of gallonage
during the month, minus the gallonage remaining in storage at
the end of the month.
Any loss reported that is in excess of 1% shall be subject

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to the tax imposed by Section 2 of this Law. On and after July
1, 2001, for each 6-month period January through June, net
losses of special fuel (for each category of special fuel that
is required to be reported on a return) as the result of
evaporation or shrinkage due to temperature variations may not
exceed 1% of the total gallons in storage at the beginning of
each January, plus the receipts of gallonage each January
through June, minus the gallonage remaining in storage at the
end of each June. On and after July 1, 2001, for each 6-month
period July through December, net losses of special fuel (for
each category of special fuel that is required to be reported
on a return) as the result of evaporation or shrinkage due to
temperature variations may not exceed 1% of the total gallons
in storage at the beginning of each July, plus the receipts of
gallonage each July through December, minus the gallonage
remaining in storage at the end of each December. Any net loss
reported that is in excess of this amount shall be subject to
the tax imposed by Section 2 of this Law. For purposes of this
Section, "net loss" means the number of gallons gained through
temperature variations minus the number of gallons lost through
temperature variations or evaporation for each of the
respective 6-month periods.
In case of a sale of special fuel to someone other than a
licensed distributor or licensed supplier for a use other than
in motor vehicles, the supplier shall show in his return the
amount of invoiced gallons sold and the name and address of the

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purchaser in addition to any other information the Department
may require.
All special fuel sold or used for non-highway purposes must
have a dye added in accordance with Section 4d of this Law.
All returns shall be made on forms prepared and furnished
by the Department and shall contain such other information as
the Department may reasonably require. The return must be
accompanied by appropriate computer-generated magnetic media
supporting schedule data in the format required by the
Department, unless, as provided by rule, the Department grants
an exception upon petition of a taxpayer.
In case of a tax-free sale, as provided in Section 6a, of
special fuel which the supplier is required by this Section to
include in his return to the Department, the supplier in his
return shall show: (1) If the sale of special fuel is made to
the Federal Government or its instrumentalities; (2) if the
sale of special fuel is made to a municipal corporation owning
and operating a local transportation system for public service
in this State, the name and address of such purchaser and the
amount sold, as evidenced by official forms of exemption
certificates properly executed and furnished by such
purchaser; (3) if the sale of special fuel is made to a
privately owned public utility owning and operating 2-axle
vehicles designed and used for transporting more than 7
passengers, which vehicles are used as common carriers in
general transportation of passengers, are not devoted to any

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specialized purpose and are operated entirely within the
territorial limits of a single municipality or of any group of
contiguous municipalities or in a close radius thereof, and the
operations of which are subject to the regulations of the
Illinois Commerce Commission, then the name and address of such
purchaser and the amount sold, as evidenced by official forms
of exemption certificates properly executed and furnished by
such purchaser; (4) if the product sold is special fuel and if
the sale is made to a licensed supplier or to a licensed
distributor under conditions which qualify the sale for tax
exemption under Section 6a of this Act, the amount sold and the
name, address and license number of such purchaser; (5) if a
sale of special fuel is made to a person where delivery is made
outside of this State, the name and address of such purchaser
and the point of delivery together with the date and amount of
invoiced gallons delivered; and (6) if a sale of special fuel
is made to someone other than a licensed distributor or a
licensed supplier, for a use other than in motor vehicles, by
making a specific notation thereof on the invoice or sales slip
covering that sale and obtaining such supporting documentation
as may be required by the Department.
All special fuel sold or used for non-highway purposes must
have a dye added in accordance with Section 4d of this Law.
If any payment provided for in this Section exceeds the
supplier's liabilities under this Act, as shown on an original
return, the Department may authorize the supplier to credit

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such excess payment against liability subsequently to be
remitted to the Department under this Act, in accordance with
reasonable rules adopted by the Department. If the Department
subsequently determines that all or any part of the credit
taken was not actually due to the supplier, the supplier's
discount shall be reduced by an amount equal to the difference
between the discount as applied to the credit taken and that
actually due, and that supplier shall be liable for penalties
and interest on such difference.
(Source: P.A. 96-1384, eff. 7-29-10.)
(35 ILCS 505/13) (from Ch. 120, par. 429)
Sec. 13. Refund of tax paid. Any person other than a
distributor or supplier, who loses motor fuel through any cause
or uses motor fuel (upon which he has paid the amount required
to be collected under Section 2 of this Act) for any purpose
other than operating a motor vehicle upon the public highways
or waters, shall be reimbursed and repaid the amount so paid.
Any person who purchases motor fuel in Illinois and uses
that motor fuel in another state and that other state imposes a
tax on the use of such motor fuel shall be reimbursed and
repaid the amount of Illinois tax paid under Section 2 of this
Act on the motor fuel used in such other state. Reimbursement
and repayment shall be made by the Department upon receipt of
adequate proof of taxes directly paid to another state and the
amount of motor fuel used in that state.

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Claims based in whole or in part on taxes paid to another
state shall include (i) a certified copy of the tax return
filed with such other state by the claimant; (ii) a copy of
either the cancelled check paying the tax due on such return,
or a receipt acknowledging payment of the tax due on such tax
return; and (iii) such other information as the Department may
reasonably require. This paragraph shall not apply to taxes
paid on returns filed under Section 13a.3 of this Act.
Any person who purchases motor fuel use tax decals as
required by Section 13a.4 and pays an amount of fees for such
decals that exceeds the amount due shall be reimbursed and
repaid the amount of the decal fees that are deemed by the
department to be in excess of the amount due. Alternatively,
any person who purchases motor fuel use tax decals as required
by Section 13a.4 may credit any excess decal payment verified
by the Department against amounts subsequently due for the
purchase of additional decals, until such time as no excess
payment remains.
Claims for such reimbursement must be made to the
Department of Revenue, duly verified by the claimant (or by the
claimant's legal representative if the claimant has died or
become a person under legal disability), upon forms prescribed
by the Department. The claim must state such facts relating to
the purchase, importation, manufacture or production of the
motor fuel by the claimant as the Department may deem
necessary, and the time when, and the circumstances of its loss

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or the specific purpose for which it was used (as the case may
be), together with such other information as the Department may
reasonably require. No claim based upon idle time shall be
allowed. Claims for reimbursement for overpayment of decal fees
shall be made to the Department of Revenue, duly verified by
the claimant (or by the claimant's legal representative if the
claimant has died or become a person under legal disability),
upon forms prescribed by the Department. The claim shall state
facts relating to the overpayment of decal fees, together with
such other information as the Department may reasonably
require. Claims for reimbursement of overpayment of decal fees
paid on or after January 1, 2011 must be filed not later than
one year after the date on which the fees were paid by the
claimant. If it is determined that the Department should
reimburse a claimant for overpayment of decal fees, the
Department shall first apply the amount of such refund against
any tax or penalty or interest due by the claimant under
Section 13a of this Act.
Claims for full reimbursement for taxes paid on or before
December 31, 1999 must be filed not later than one year after
the date on which the tax was paid by the claimant. If,
however, a claim for such reimbursement otherwise meeting the
requirements of this Section is filed more than one year but
less than 2 years after that date, the claimant shall be
reimbursed at the rate of 80% of the amount to which he would
have been entitled if his claim had been timely filed.

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Claims for full reimbursement for taxes paid on or after
January 1, 2000 must be filed not later than 2 years after the
date on which the tax was paid by the claimant.
The Department may make such investigation of the
correctness of the facts stated in such claims as it deems
necessary. When the Department has approved any such claim, it
shall pay to the claimant (or to the claimant's legal
representative, as such if the claimant has died or become a
person under legal disability) the reimbursement provided in
this Section, out of any moneys appropriated to it for that
purpose.
Any distributor or supplier who has paid the tax imposed by
Section 2 of this Act upon motor fuel lost or used by such
distributor or supplier for any purpose other than operating a
motor vehicle upon the public highways or waters may file a
claim for credit or refund to recover the amount so paid. Such
claims shall be filed on forms prescribed by the Department.
Such claims shall be made to the Department, duly verified by
the claimant (or by the claimant's legal representative if the
claimant has died or become a person under legal disability),
upon forms prescribed by the Department. The claim shall state
such facts relating to the purchase, importation, manufacture
or production of the motor fuel by the claimant as the
Department may deem necessary and the time when the loss or
nontaxable use occurred, and the circumstances of its loss or
the specific purpose for which it was used (as the case may

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be), together with such other information as the Department may
reasonably require. Claims must be filed not later than one
year after the date on which the tax was paid by the claimant.
The Department may make such investigation of the
correctness of the facts stated in such claims as it deems
necessary. When the Department approves a claim, the Department
shall issue a refund or credit memorandum as requested by the
taxpayer, to the distributor or supplier who made the payment
for which the refund or credit is being given or, if the
distributor or supplier has died or become incompetent, to such
distributor's or supplier's legal representative, as such. The
amount of such credit memorandum shall be credited against any
tax due or to become due under this Act from the distributor or
supplier who made the payment for which credit has been given.
Any credit or refund that is allowed under this Section
shall bear interest at the rate and in the manner specified in
the Uniform Penalty and Interest Act.
In case the distributor or supplier requests and the
Department determines that the claimant is entitled to a
refund, such refund shall be made only from such appropriation
as may be available for that purpose. If it appears unlikely
that the amount appropriated would permit everyone having a
claim allowed during the period covered by such appropriation
to elect to receive a cash refund, the Department, by rule or
regulation, shall provide for the payment of refunds in
hardship cases and shall define what types of cases qualify as

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hardship cases.
In any case in which there has been an erroneous refund of
tax or fees payable under this Section, a notice of tax
liability may be issued at any time within 3 years from the
making of that refund, or within 5 years from the making of
that refund if it appears that any part of the refund was
induced by fraud or the misrepresentation of material fact. The
amount of any proposed assessment set forth by the Department
shall be limited to the amount of the erroneous refund.
If no tax is due and no proceeding is pending to determine
whether such distributor or supplier is indebted to the
Department for tax, the credit memorandum so issued may be
assigned and set over by the lawful holder thereof, subject to
reasonable rules of the Department, to any other licensed
distributor or supplier who is subject to this Act, and the
amount thereof applied by the Department against any tax due or
to become due under this Act from such assignee.
If the payment for which the distributor's or supplier's
claim is filed is held in the protest fund of the State
Treasury during the pendency of the claim for credit
proceedings pursuant to the order of the court in accordance
with Section 2a of the State Officers and Employees Money
Disposition Act and if it is determined by the Department or by
the final order of a reviewing court under the Administrative
Review Law that the claimant is entitled to all or a part of
the credit claimed, the claimant, instead of receiving a credit

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memorandum from the Department, shall receive a cash refund
from the protest fund as provided for in Section 2a of the
State Officers and Employees Money Disposition Act.
If any person ceases to be licensed as a distributor or
supplier while still holding an unused credit memorandum issued
under this Act, such person may, at his election (instead of
assigning the credit memorandum to a licensed distributor or
licensed supplier under this Act), surrender such unused credit
memorandum to the Department and receive a refund of the amount
to which such person is entitled.
For claims based upon taxes paid on or before December 31,
2000, a claim based upon the use of undyed diesel fuel shall
not be allowed except (i) if allowed under the following
paragraph or (ii) for undyed diesel fuel used by a commercial
vehicle, as that term is defined in Section 1-111.8 of the
Illinois Vehicle Code, for any purpose other than operating the
commercial vehicle upon the public highways and unlicensed
commercial vehicles operating on private property. Claims
shall be limited to commercial vehicles that are operated for
both highway purposes and any purposes other than operating
such vehicles upon the public highways.
For claims based upon taxes paid on or after January 1,
2000, a claim based upon the use of undyed diesel fuel shall
not be allowed except (i) if allowed under the preceding
paragraph or (ii) for claims for the following:
(1) Undyed diesel fuel used (i) in a manufacturing

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process, as defined in Section 2-45 of the Retailers'
Occupation Tax Act, wherein the undyed diesel fuel becomes
a component part of a product or by-product, other than
fuel or motor fuel, when the use of dyed diesel fuel in
that manufacturing process results in a product that is
unsuitable for its intended use or (ii) for testing
machinery and equipment in a manufacturing process, as
defined in Section 2-45 of the Retailers' Occupation Tax
Act, wherein the testing takes place on private property.
(2) Undyed diesel fuel used by a manufacturer on
private property in the research and development, as
defined in Section 1.29, of machinery or equipment intended
for manufacture.
(3) Undyed diesel fuel used by a single unit
self-propelled agricultural fertilizer implement, designed
for on and off road use, equipped with flotation tires and
specially adapted for the application of plant food
materials or agricultural chemicals.
(4) Undyed diesel fuel used by a commercial motor
vehicle for any purpose other than operating the commercial
motor vehicle upon the public highways. Claims shall be
limited to commercial motor vehicles that are operated for
both highway purposes and any purposes other than operating
such vehicles upon the public highways.
(5) Undyed diesel fuel used by a unit of local
government in its operation of an airport if the undyed

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diesel fuel is used directly in airport operations on
airport property.
(6) Undyed diesel fuel used by refrigeration units that
are permanently mounted to a semitrailer, as defined in
Section 1.28 of this Law, wherein the refrigeration units
have a fuel supply system dedicated solely for the
operation of the refrigeration units.
(7) Undyed diesel fuel used by power take-off equipment
as defined in Section 1.27 of this Law.
(8) Beginning on the effective date of this amendatory
Act of the 94th General Assembly, undyed diesel fuel used
by tugs and spotter equipment to shift vehicles or parcels
on both private and airport property. Any claim under this
item (8) may be made only by a claimant that owns tugs and
spotter equipment and operates that equipment on both
private and airport property. The aggregate of all credits
or refunds resulting from claims filed under this item (8)
by a claimant in any calendar year may not exceed $100,000.
A claim may not be made under this item (8) by the same
claimant more often than once each quarter. For the
purposes of this item (8), "tug" means a vehicle designed
for use on airport property that shifts custom-designed
containers of parcels from loading docks to aircraft, and
"spotter equipment" means a vehicle designed for use on
both private and airport property that shifts trailers
containing parcels between staging areas and loading

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docks.
Any person who has paid the tax imposed by Section 2 of
this Law upon undyed diesel fuel that is unintentionally mixed
with dyed diesel fuel and who owns or controls the mixture of
undyed diesel fuel and dyed diesel fuel may file a claim for
refund to recover the amount paid. The amount of undyed diesel
fuel unintentionally mixed must equal 500 gallons or more. Any
claim for refund of unintentionally mixed undyed diesel fuel
and dyed diesel fuel shall be supported by documentation
showing the date and location of the unintentional mixing, the
number of gallons involved, the disposition of the mixed diesel
fuel, and any other information that the Department may
reasonably require. Any unintentional mixture of undyed diesel
fuel and dyed diesel fuel shall be sold or used only for
non-highway purposes.
The Department shall promulgate regulations establishing
specific limits on the amount of undyed diesel fuel that may be
claimed for refund.
For purposes of claims for refund, "loss" means the
reduction of motor fuel resulting from fire, theft, spillage,
spoilage, leakage, or any other provable cause, but does not
include a reduction resulting from evaporation, or shrinkage
due to temperature variations. In the case of losses due to
fire or theft, the claimant must include fire department or
police department reports and any other documentation that the
Department may require.

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(Source: P.A. 96-1384, eff. 7-29-10.)
(35 ILCS 505/13a.4) (from Ch. 120, par. 429a4)
Sec. 13a.4. Except as provided in Section 13a.5 of this
Act, no motor carrier shall operate in Illinois without first
securing a motor fuel use tax license and decals from the
Department or a motor fuel use tax license and decals issued
under the International Fuel Tax Agreement by any member
jurisdiction. Notwithstanding any other provision of this
Section to the contrary, however, the Director of Revenue or
his designee may, upon determining that a disaster exists in
Illinois or in any other jurisdiction state, temporarily waive
the licensing requirements of this Section for commercial motor
vehicles that travel through Illinois, or return to Illinois
from a point outside Illinois, for the purpose of assisting in
disaster relief efforts. Temporary waiver of the licensing
requirements of this Section shall not exceed a period of 30
days from the date the Director temporarily waives the
licensing requirements of this Section. For purposes of this
Section, a disaster includes flood, tornado, hurricane, fire,
earthquake, or any other disaster that causes or threatens loss
of life or destruction or damage to property of such a
magnitude as to endanger the public health, safety, and
welfare. The licensing requirements of this Section shall be
temporarily waived only if the operator of the commercial motor
vehicle can provide proof by manifest that the commercial motor

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vehicle is traveling through Illinois or returning to Illinois
from a point outside Illinois for purposes of assisting in
disaster relief efforts. Application for such license and
decals shall be made annually to the Department on forms
prescribed by the Department. The application shall be under
oath, and shall contain such information as the Department
deems necessary. The Department, for cause, may require an
applicant to post a bond on a form to be approved by and with a
surety or sureties satisfactory to the Department conditioned
upon such applicant paying to the State of Illinois all monies
becoming due by reason of the sale or use of motor fuel by the
applicant, together with all penalties and interest thereon. If
a bond is required, it shall be equal to at least twice the
estimated average tax liability of a quarterly return. The
Department shall fix the penalty of such bond in each case
taking into consideration the amount of motor fuel expected to
be used by such applicant and the penalty fixed by the
Department shall be such as, in its opinion, will protect the
State of Illinois against failure to pay the amount hereinafter
provided on motor fuel used. No person who is in default to the
State for monies due under this Act for the sale, distribution
or use of motor fuel shall receive such a license or decal.
Upon receipt of the application for license in proper form,
and upon payment of any required $100 reinstatement fee, and
upon approval by the Department of the bond furnished by the
applicant, the Department may issue to such applicant a license

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which allows the operation of commercial motor vehicles in
Illinois, and decals for each commercial motor vehicle
operating in Illinois. Prior to January 1, 1985, motor fuel use
tax licenses shall be conspicuously displayed in the cab of
each commercial motor vehicle operating in Illinois. After
January 1, 1986, motor fuel use tax licenses shall be carried
in the cab of each commercial motor vehicle operating in
Illinois.
The Department shall, by regulation, provide for the use of
reproductions of original motor fuel use tax licenses in lieu
of issuing multiple original motor fuel use tax licenses to
licensees.
On and after January 1, 1985, external motor fuel tax
decals shall be conspicuously displayed on the passenger side
of each commercial motor vehicle propelled by motor fuel
operating in Illinois, except buses, which may display such
devices on the driver's side of the vehicle. Beginning with the
effective date of this amendatory Act of 1993 or the membership
of the State of Illinois in the International Fuel Tax
Agreement, whichever is later, the decals issued to the
licensee shall be placed on both exterior sides of the cab. In
the case of transporters, manufacturers, dealers, or driveway
operations, the decals need not be permanently affixed but may
be temporarily displayed in a visible manner on the exterior
sides of the cab. Failure to display the decals in the required
locations may subject the vehicle operator to the purchase of a

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trip permit and a citation. Such motor fuel tax decals shall be
issued by the Department and remain valid for a period of 2
calendar years, beginning January 1, 1985. The decals shall
expire at the end of the regular 2 year issuance period, with
new decals required to be displayed at that time. Beginning
January 1, 1993, the motor fuel decals shall be issued by the
Department and remain valid for a period of one calendar year.
The decals shall expire at the end of the regular one year
issuance period, with new decals required to be displayed at
that time. Decals shall be no larger than 3 inches by 3 inches.
Prior to January 1, 1993, a fee of $7.50 shall be charged by
the Department for each decal issued prior to and during the 2
calendar years such decal is valid. Beginning January 1, 1993,
a fee of $3.75 shall be charged by the Department for each
decal issued prior to and during the calendar year such decal
is valid. Beginning January 1, 1994, $3.75 shall be charged for
a set of 2 decals. The Department may also prescribe procedures
for the issuance of replacement decals, with a maximum fee of
$2 for each set of replacement decals issued. The transfer of
decals from one vehicle to another vehicle or from one motor
carrier to another motor carrier is prohibited. The fees paid
for the decals issued under this Section shall be deposited in
the Motor Fuel Tax Fund, and may be appropriated to the
Department for administration of this Section and enforcement
of the tax imposed by Section 13a of this Act.
To avoid duplicate reporting of mileage and payment of any

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tax arising therefrom under Section 13a.3 of this Act, the
Department shall, by regulation, provide for the allocation
between lessors and lessees of the same commercial motor
vehicle or vehicles of the responsibility as a motor carrier
for the reporting of mileage and the liability for tax arising
under Section 13a.3 of this Act, and for registration,
furnishing of bond, carrying of motor fuel use tax licenses,
and display of decals under this Section, and for all other
duties imposed upon motor carriers by this Act.
(Source: P.A. 96-1384, eff. 7-29-10.)
(35 ILCS 505/13a.5) (from Ch. 120, par. 429a5)
Sec. 13a.5. As to a commercial motor vehicle operated in
Illinois in the course of interstate traffic by a motor carrier
not holding a motor fuel use tax license issued under this Act,
a single trip permit authorizing operation of such commercial
motor vehicle for a single trip into the State of Illinois,
through the State of Illinois, or from a point on the border of
this State to a point within and return to the border may be
issued by the Department or its agents after proper
application. The fee for each single trip permit shall be $40
and such single trip permit shall be valid for a period of 96
hours. This fee shall be in lieu of the tax required by Section
13a of this Act, all reports required by Section 13a.3 of this
Act, and the registration, decal display and furnishing of bond
required by Section 13a.4 of this Act. Notwithstanding any

SB3445 - 377 - LRB100 20331 HLH 35618 b
other provision of this Section to the contrary, however, the
Director of Revenue or his designee may, upon determining that
a disaster exists in Illinois or in any other jurisdiction
state, temporarily waive the permit provisions of this Section
for commercial motor vehicles that travel into the State of
Illinois, through Illinois, or return to Illinois from a point
outside Illinois, for the purpose of assisting in disaster
relief efforts. Temporary waiver of the permit provisions of
this Section shall not exceed a period of 30 days from the date
the Director waives the permit provisions of this Section. For
purposes of this Section, a disaster includes flood, tornado,
hurricane, fire, earthquake, or any other disaster that causes
or threatens loss of life or destruction or damage to property
of such a magnitude as to endanger the public health, safety,
and welfare. The permit provisions of this Section shall be
temporarily waived only if the operator of the commercial motor
vehicle can provide proof by manifest that the commercial motor
vehicle is traveling through Illinois or returning to Illinois
from a point outside Illinois for purposes of assisting in
disaster relief efforts. Rules or regulations promulgated by
the Department under this Section shall provide for reasonable
and proper limitations and restrictions governing application
for and issuance and use of, single trip permits, so as to
preclude evasion of the license requirement in Section 13a.4.
(Source: P.A. 96-1384, eff. 7-29-10.)

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Section 85. The Gas Revenue Tax Act is amended by changing
Sections 2a.2 and 3 as follows:
(35 ILCS 615/2a.2) (from Ch. 120, par. 467.17a.2)
Sec. 2a.2. Annual return, collection and payment. - A
return with respect to the tax imposed by Section 2a.1 shall be
made by every person for any taxable period for which such
person is liable for such tax. Such return shall be made on
such forms as the Department shall prescribe and shall contain
the following information:
1. Taxpayer's name;
2. Address of taxpayer's principal place of business,
and address of the principal place of business (if that is
a different address) from which the taxpayer engages in the
business of distributing, supplying, furnishing or selling
gas in this State;
3. The total proprietary capital and total long-term
debt as of the beginning and end of the taxable period as
set forth on the balance sheets included in the taxpayer's
annual report to the Illinois Commerce Commission for the
taxable period;
4. The taxpayer's base income allocable to Illinois
under Sections 301 and 304(a) of the "Illinois Income Tax
Act", for the period covered by the return;
5. The amount of tax due for the taxable period
(computed on the basis of the amounts set forth in Items 3

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and 4); and
6. Such other reasonable information as may be required
by forms or regulations prescribed by the Department.
The returns prescribed by this Section shall be due and
shall be filed with the Department not later than the 15th day
of the third month following the close of the taxable period.
The taxpayer making the return herein provided for shall, at
the time of making such return, pay to the Department the
remaining amount of tax herein imposed and due for the taxable
period. Each taxpayer shall make estimated quarterly payments
on the 15th day of the third, sixth, ninth and twelfth months
of each taxable period. Such estimated payments shall be 25% of
the tax liability for the immediately preceding taxable period
or the tax liability that would have been imposed in the
immediately preceding taxable period if this amendatory Act of
1979 had been in effect. All moneys received by the Department
under Sections 2a.1 and 2a.2 shall be paid into the Personal
Property Tax Replacement Fund in the State Treasury.
If any payment provided for in this Section exceeds the
taxpayer's liabilities under this Act, as shown on an original
return, the Department may authorize the taxpayer to credit
such excess payment against liability subsequently to be
remitted to the Department under this Act, in accordance with
reasonable rules adopted by the Department.
(Source: P.A. 87-205.)

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(35 ILCS 615/3) (from Ch. 120, par. 467.18)
Sec. 3. Return of taxpayer; payment of tax. Except as
provided in this Section, on or before the 15th day of each
month, each taxpayer shall make a return to the Department for
the preceding calendar month, stating:
1. His name;
2. The address of his principal place of business, and
the address of the principal place of business (if that is
a different address) from which he engages in the business
of distributing, supplying, furnishing or selling gas in
this State;
3. The total number of therms for which payment was
received by him from customers during the preceding
calendar month and upon the basis of which the tax is
imposed;
4. Gross receipts which were received by him from
customers during the preceding calendar month from such
business, including budget plan and other customer-owned
amounts applied during such month in payment of charges
includible in gross receipts, and upon the basis of which
the tax is imposed;
5. Amount of tax (computed upon Items 3 and 4);
6. Such other reasonable information as the Department
may require.
In making such return the taxpayer may use any reasonable
method to derive reportable "therms" and "gross receipts" from

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his billing and payment records.
Any taxpayer required to make payments under this Section
may make the payments by electronic funds transfer. The
Department shall adopt rules necessary to effectuate a program
of electronic funds transfer.
If the taxpayer's average monthly tax liability to the
Department does not exceed $100.00, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February and March of a given year
being due by April 30 of such year; with the return for April,
May and June of a given year being due by July 31 of such year;
with the return for July, August and September of a given year
being due by October 31 of such year, and with the return for
October, November and December of a given year being due by
January 31 of the following year.
If the taxpayer's average monthly tax liability to the
Department does not exceed $20.00, the Department may authorize
his returns to be filed on an annual basis, with the return for
a given year being due by January 31 of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
Notwithstanding any other provision in this Act concerning
the time within which a taxpayer may file his return, in the
case of any taxpayer who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,

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such taxpayer shall file a final return under this Act with the
Department not more than one month after discontinuing such
business.
In making such return the taxpayer shall determine the
value of any reportable consideration other than money received
by him and shall include such value in his return. Such
determination shall be subject to review and revision by the
Department in the same manner as is provided in this Act for
the correction of returns.
Each taxpayer whose average monthly liability to the
Department under this Act was $10,000 or more during the
preceding calendar year, excluding the month of highest
liability and the month of lowest liability in such calendar
year, and who is not operated by a unit of local government,
shall make estimated payments to the Department on or before
the 7th, 15th, 22nd and last day of the month during which tax
liability to the Department is incurred in an amount not less
than the lower of either 22.5% of the taxpayer's actual tax
liability for the month or 25% of the taxpayer's actual tax
liability for the same calendar month of the preceding year.
The amount of such quarter monthly payments shall be credited
against the final tax liability of the taxpayer's return for
that month. Any outstanding credit, approved by the Department,
arising from the taxpayer's overpayment of its final tax
liability for any month may be applied to reduce the amount of
any subsequent quarter monthly payment or credited against the

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final tax liability of the taxpayer's return for any subsequent
month. If any quarter monthly payment is not paid at the time
or in the amount required by this Section, the taxpayer shall
be liable for penalty and interest on the difference between
the minimum amount due as a payment and the amount of such
payment actually and timely paid, except insofar as the
taxpayer has previously made payments for that month to the
Department in excess of the minimum payments previously due.
If the Director finds that the information required for the
making of an accurate return cannot reasonably be compiled by a
taxpayer within 15 days after the close of the calendar month
for which a return is to be made, he may grant an extension of
time for the filing of such return for a period of not to
exceed 31 calendar days. The granting of such an extension may
be conditioned upon the deposit by the taxpayer with the
Department of an amount of money not exceeding the amount
estimated by the Director to be due with the return so
extended. All such deposits, including any made before the
effective date of this amendatory Act of 1975 with the
Department, shall be credited against the taxpayer's
liabilities under this Act. If any such deposit exceeds the
taxpayer's present and probable future liabilities under this
Act, the Department shall issue to the taxpayer a credit
memorandum, which may be assigned by the taxpayer to a similar
taxpayer under this Act, in accordance with reasonable rules
and regulations to be prescribed by the Department.

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The taxpayer making the return provided for in this Section
shall, at the time of making such return, pay to the Department
the amount of tax imposed by this Act. All moneys received by
the Department under this Act shall be paid into the General
Revenue Fund in the State Treasury, except as otherwise
provided.
If any payment provided for in this Section exceeds the
taxpayer's liabilities under this Act, as shown on an original
return, the Department may authorize the taxpayer to credit
such excess payment against liability subsequently to be
remitted to the Department under this Act, in accordance with
reasonable rules adopted by the Department.
(Source: P.A. 90-16, eff. 6-16-97.)
Section 90. The Public Utilities Revenue Act is amended by
changing Section 2a.2 as follows:
(35 ILCS 620/2a.2) (from Ch. 120, par. 469a.2)
Sec. 2a.2. Annual return, collection and payment. A return
with respect to the tax imposed by Section 2a.1 shall be made
by every person for any taxable period for which such person is
liable for such tax. Such return shall be made on such forms as
the Department shall prescribe and shall contain the following
information:
1. Taxpayer's name;
2. Address of taxpayer's principal place of business,

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and address of the principal place of business (if that is
a different address) from which the taxpayer engages in the
business of distributing electricity in this State;
3. The total equity, in the case of electric
cooperatives, in the annual reports filed with the Rural
Utilities Service for the taxable period;
3a. The total kilowatt-hours of electricity
distributed by a taxpayer, other than an electric
cooperative, in this State for the taxable period covered
by the return;
4. The amount of tax due for the taxable period
(computed on the basis of the amounts set forth in Items 3
and 3a); and
5. Such other reasonable information as may be required
by forms or regulations prescribed by the Department.
The returns prescribed by this Section shall be due and
shall be filed with the Department not later than the 15th day
of the third month following the close of the taxable period.
The taxpayer making the return herein provided for shall, at
the time of making such return, pay to the Department the
remaining amount of tax herein imposed and due for the taxable
period. Each taxpayer shall make estimated quarterly payments
on the 15th day of the third, sixth, ninth and twelfth months
of each taxable period. Such estimated payments shall be 25% of
the tax liability for the immediately preceding taxable period
or the tax liability that would have been imposed in the

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immediately preceding taxable period if this amendatory Act of
1979 had been in effect. All moneys received by the Department
under Sections 2a.1 and 2a.2 shall be paid into the Personal
Property Tax Replacement Fund in the State Treasury.
If any payment provided for in this Section exceeds the
taxpayer's liabilities under this Act, as shown on an original
return, the taxpayer may credit such excess payment against
liability subsequently to be remitted to the Department under
this Act, in accordance with reasonable rules adopted by the
Department.
(Source: P.A. 90-561, eff. 1-1-98.)
Section 95. The Telecommunications Excise Tax Act is
amended by changing Section 6 as follows:
(35 ILCS 630/6) (from Ch. 120, par. 2006)
Sec. 6. Returns; payments. Except as provided hereinafter
in this Section, on or before the last day of each month, each
retailer maintaining a place of business in this State shall
make a return to the Department for the preceding calendar
month, stating:
1. His name;
2. The address of his principal place of business, or
the address of the principal place of business (if that is
a different address) from which he engages in the business
of transmitting telecommunications;

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3. Total amount of gross charges billed by him during
the preceding calendar month for providing
telecommunications during such calendar month;
4. Total amount received by him during the preceding
calendar month on credit extended;
5. Deductions allowed by law;
6. Gross charges which were billed by him during the
preceding calendar month and upon the basis of which the
tax is imposed;
7. Amount of tax (computed upon Item 6);
8. Such other reasonable information as the Department
may require.
Any taxpayer required to make payments under this Section
may make the payments by electronic funds transfer. The
Department shall adopt rules necessary to effectuate a program
of electronic funds transfer. Any taxpayer who has average
monthly tax billings due to the Department under this Act and
the Simplified Municipal Telecommunications Tax Act that
exceed $1,000 shall make all payments by electronic funds
transfer as required by rules of the Department and shall file
the return required by this Section by electronic means as
required by rules of the Department.
If the retailer's average monthly tax billings due to the
Department under this Act and the Simplified Municipal
Telecommunications Tax Act do not exceed $1,000, the Department
may authorize his returns to be filed on a quarter annual

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basis, with the return for January, February and March of a
given year being due by April 30 of such year; with the return
for April, May and June of a given year being due by July 31st
of such year; with the return for July, August and September of
a given year being due by October 31st of such year; and with
the return of October, November and December of a given year
being due by January 31st of the following year.
If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
billings due to the Department under this Act and the
Simplified Municipal Telecommunications Tax Act do not exceed
$400, the Department may authorize his or her return to be
filed on an annual basis, with the return for a given year
being due by January 31st of the following year.
Notwithstanding any other provision of this Article
containing the time within which a retailer may file his
return, in the case of any retailer who ceases to engage in a
kind of business which makes him responsible for filing returns
under this Article, such retailer shall file a final return
under this Article with the Department not more than one month
after discontinuing such business.
In making such return, the retailer shall determine the
value of any consideration other than money received by him and
he shall include such value in his return. Such determination
shall be subject to review and revision by the Department in
the manner hereinafter provided for the correction of returns.

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Each retailer whose average monthly liability to the
Department under this Article and the Simplified Municipal
Telecommunications Tax Act was $25,000 or more during the
preceding calendar year, excluding the month of highest
liability and the month of lowest liability in such calendar
year, and who is not operated by a unit of local government,
shall make estimated payments to the Department on or before
the 7th, 15th, 22nd and last day of the month during which tax
collection liability to the Department is incurred in an amount
not less than the lower of either 22.5% of the retailer's
actual tax collections for the month or 25% of the retailer's
actual tax collections for the same calendar month of the
preceding year. The amount of such quarter monthly payments
shall be credited against the final liability of the retailer's
return for that month. Any outstanding credit, approved by the
Department, arising from the retailer's overpayment of its
final liability for any month may be applied to reduce the
amount of any subsequent quarter monthly payment or credited
against the final liability of the retailer's return for any
subsequent month. If any quarter monthly payment is not paid at
the time or in the amount required by this Section, the
retailer shall be liable for penalty and interest on the
difference between the minimum amount due as a payment and the
amount of such payment actually and timely paid, except insofar
as the retailer has previously made payments for that month to
the Department in excess of the minimum payments previously

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due.
The retailer making the return herein provided for shall,
at the time of making such return, pay to the Department the
amount of tax herein imposed, less a discount of 1% which is
allowed to reimburse the retailer for the expenses incurred in
keeping records, billing the customer, preparing and filing
returns, remitting the tax, and supplying data to the
Department upon request. No discount may be claimed by a
retailer on returns not timely filed and for taxes not timely
remitted.
If any payment provided for in this Section exceeds the
retailer's liabilities under this Act, as shown on an original
return, the Department may authorize the retailer to credit
such excess payment against liability subsequently to be
remitted to the Department under this Act, in accordance with
reasonable rules adopted by the Department. If the Department
subsequently determines that all or any part of the credit
taken was not actually due to the retailer, the retailer's
discount shall be reduced by an amount equal to the difference
between the discount as applied to the credit taken and that
actually due, and that retailer shall be liable for penalties
and interest on such difference.
On and after the effective date of this Article of 1985, of
the moneys received by the Department of Revenue pursuant to
this Article, other than moneys received pursuant to the
additional taxes imposed by Public Act 90-548:

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(1) $1,000,000 shall be paid each month into the Common
School Fund;
(2) beginning on the first day of the first calendar
month to occur on or after the effective date of this
amendatory Act of the 98th General Assembly, an amount
equal to 1/12 of 5% of the cash receipts collected during
the preceding fiscal year by the Audit Bureau of the
Department from the tax under this Act and the Simplified
Municipal Telecommunications Tax Act shall be paid each
month into the Tax Compliance and Administration Fund;
those moneys shall be used, subject to appropriation, to
fund additional auditors and compliance personnel at the
Department of Revenue; and
(3) the remainder shall be deposited into the General
Revenue Fund.
On and after February 1, 1998, however, of the moneys
received by the Department of Revenue pursuant to the
additional taxes imposed by Public Act 90-548, one-half shall
be deposited into the School Infrastructure Fund and one-half
shall be deposited into the Common School Fund. On and after
the effective date of this amendatory Act of the 91st General
Assembly, if in any fiscal year the total of the moneys
deposited into the School Infrastructure Fund under this Act is
less than the total of the moneys deposited into that Fund from
the additional taxes imposed by Public Act 90-548 during fiscal
year 1999, then, as soon as possible after the close of the

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fiscal year, the Comptroller shall order transferred and the
Treasurer shall transfer from the General Revenue Fund to the
School Infrastructure Fund an amount equal to the difference
between the fiscal year total deposits and the total amount
deposited into the Fund in fiscal year 1999.
(Source: P.A. 98-1098, eff. 8-26-14.)
Section 100. The Electricity Excise Tax Law is amended by
changing Sections 2-9 and 2-11 as follows:
(35 ILCS 640/2-9)
Sec. 2-9. Return and payment of tax by delivering supplier.
Each delivering supplier who is required or authorized to
collect the tax imposed by this Law shall make a return to the
Department on or before the 15th day of each month for the
preceding calendar month stating the following:
(1) The delivering supplier's name.
(2) The address of the delivering supplier's principal
place of business and the address of the principal place of
business (if that is a different address) from which the
delivering supplier engaged in the business of delivering
electricity in this State.
(3) The total number of kilowatt-hours which the
supplier delivered to or for purchasers during the
preceding calendar month and upon the basis of which the
tax is imposed.

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(4) Amount of tax, computed upon Item (3) at the rates
stated in Section 2-4.
(5) An adjustment for uncollectible amounts of tax in
respect of prior period kilowatt-hour deliveries,
determined in accordance with rules and regulations
promulgated by the Department.
(5.5) The amount of credits to which the taxpayer is
entitled on account of purchases made under Section 8-403.1
of the Public Utilities Act.
(6) Such other information as the Department
reasonably may require.
In making such return the delivering supplier may use any
reasonable method to derive reportable "kilowatt-hours" from
the delivering supplier's records.
If the average monthly tax liability to the Department of
the delivering supplier does not exceed $2,500, the Department
may authorize the delivering supplier's returns to be filed on
a quarter-annual basis, with the return for January, February
and March of a given year being due by April 30 of such year;
with the return for April, May and June of a given year being
due by July 31 of such year; with the return for July, August
and September of a given year being due by October 31 of such
year; and with the return for October, November and December of
a given year being due by January 31 of the following year.
If the average monthly tax liability to the Department of
the delivering supplier does not exceed $1,000, the Department

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may authorize the delivering supplier's returns to be filed on
an annual basis, with the return for a given year being due by
January 31 of the following year.
Such quarter-annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
Notwithstanding any other provision in this Law concerning
the time within which a delivering supplier may file a return,
any such delivering supplier who ceases to engage in a kind of
business which makes the person responsible for filing returns
under this Law shall file a final return under this Law with
the Department not more than one month after discontinuing such
business.
Each delivering supplier whose average monthly liability
to the Department under this Law was $10,000 or more during the
preceding calendar year, excluding the month of highest
liability and the month of lowest liability in such calendar
year, and who is not operated by a unit of local government,
shall make estimated payments to the Department on or before
the 7th, 15th, 22nd and last day of the month during which tax
liability to the Department is incurred in an amount not less
than the lower of either 22.5% of such delivering supplier's
actual tax liability for the month or 25% of such delivering
supplier's actual tax liability for the same calendar month of
the preceding year. The amount of such quarter-monthly payments
shall be credited against the final tax liability of such

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delivering supplier's return for that month. An outstanding
credit approved by the Department or a credit memorandum issued
by the Department arising from such delivering supplier's
overpayment of his or her final tax liability for any month may
be applied to reduce the amount of any subsequent
quarter-monthly payment or credited against the final tax
liability of such delivering supplier's return for any
subsequent month. If any quarter-monthly payment is not paid at
the time or in the amount required by this Section, such
delivering supplier shall be liable for penalty and interest on
the difference between the minimum amount due as a payment and
the amount of such payment actually and timely paid, except
insofar as such delivering supplier has previously made
payments for that month to the Department in excess of the
minimum payments previously due.
If the Director finds that the information required for the
making of an accurate return cannot reasonably be compiled by
such delivering supplier within 15 days after the close of the
calendar month for which a return is to be made, the Director
may grant an extension of time for the filing of such return
for a period not to exceed 31 calendar days. The granting of
such an extension may be conditioned upon the deposit by such
delivering supplier with the Department of an amount of money
not exceeding the amount estimated by the Director to be due
with the return so extended. All such deposits shall be
credited against such delivering supplier's liabilities under

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this Law. If the deposit exceeds such delivering supplier's
present and probable future liabilities under this Law, the
Department shall issue to such delivering supplier a credit
memorandum, which may be assigned by such delivering supplier
to a similar person under this Law, in accordance with
reasonable rules and regulations to be prescribed by the
Department.
The delivering supplier making the return provided for in
this Section shall, at the time of making such return, pay to
the Department the amount of tax imposed by this Law.
Until October 1, 2002, a delivering supplier who has an
average monthly tax liability of $10,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. The term "average monthly tax liability" shall
be the sum of the delivering supplier's liabilities under this
Law for the immediately preceding calendar year divided by 12.
Beginning on October 1, 2002, a taxpayer who has a tax
liability in the amount set forth in subsection (b) of Section
2505-210 of the Department of Revenue Law shall make all
payments required by rules of the Department by electronic
funds transfer. Any delivering supplier not required to make
payments by electronic funds transfer may make payments by
electronic funds transfer with the permission of the
Department. All delivering suppliers required to make payments
by electronic funds transfer and any delivering suppliers
authorized to voluntarily make payments by electronic funds

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transfer shall make those payments in the manner authorized by
the Department.
If any payment provided for in this Section exceeds the
delivering supplier's liabilities under this Act, as shown on
an original return, the Department may authorize the delivering
supplier to credit such excess payment against liability
subsequently to be remitted to the Department under this Act,
in accordance with reasonable rules adopted by the Department.
Through June 30, 2004, each month the Department shall pay
into the Public Utility Fund in the State treasury an amount
determined by the Director to be equal to 3.0% of the funds
received by the Department pursuant to this Section. Through
June 30, 2004, the remainder of all moneys received by the
Department under this Section shall be paid into the General
Revenue Fund in the State treasury. Beginning on July 1, 2004,
of the 3% of the funds received pursuant to this Section, each
month the Department shall pay $416,667 into the General
Revenue Fund and the balance shall be paid into the Public
Utility Fund in the State treasury.
(Source: P.A. 92-492, eff. 1-1-02; 93-839, eff. 7-30-04.)
(35 ILCS 640/2-11)
Sec. 2-11. Direct return and payment by self-assessing
purchaser. When electricity is used or consumed by a
self-assessing purchaser subject to the tax imposed by this Law
who did not pay the tax to a delivering supplier maintaining a

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place of business within this State and required or authorized
to collect the tax, that self-assessing purchaser shall, on or
before the 15th day of each month, make a return to the
Department for the preceding calendar month, stating all of the
following:
(1) The self-assessing purchaser's name and principal
address.
(2) The aggregate purchase price paid by the
self-assessing purchaser for the distribution, supply,
furnishing, sale, transmission and delivery of such
electricity to or for the purchaser during the preceding
calendar month, including budget plan and other
purchaser-owned amounts applied during such month in
payment of charges includible in the purchase price, and
upon the basis of which the tax is imposed.
(3) Amount of tax, computed upon item (2) at the rate
stated in Section 2-4.
(4) Such other information as the Department
reasonably may require.
In making such return the self-assessing purchaser may use
any reasonable method to derive reportable "purchase price"
from the self-assessing purchaser's records.
If the average monthly tax liability of the self-assessing
purchaser to the Department does not exceed $2,500, the
Department may authorize the self-assessing purchaser's
returns to be filed on a quarter-annual basis, with the return

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for January, February and March of a given year being due by
April 30 of such year; with the return for April, May and June
of a given year being due by July 31 of such year; with the
return for July, August, and September of a given year being
due by October 31 of such year; and with the return for
October, November and December of a given year being due by
January 31 of the following year.
If the average monthly tax liability of the self-assessing
purchaser to the Department does not exceed $1,000, the
Department may authorize the self-assessing purchaser's
returns to be filed on an annual basis, with the return for a
given year being due by January 31 of the following year.
Such quarter-annual and annual returns, as to form and
substance, shall be subject to the same requirements as monthly
returns.
Notwithstanding any other provision in this Law concerning
the time within which a self-assessing purchaser may file a
return, any such self-assessing purchaser who ceases to be
responsible for filing returns under this Law shall file a
final return under this Law with the Department not more than
one month thereafter.
Each self-assessing purchaser whose average monthly
liability to the Department pursuant to this Section was
$10,000 or more during the preceding calendar year, excluding
the month of highest liability and the month of lowest
liability during such calendar year, and which is not operated

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by a unit of local government, shall make estimated payments to
the Department on or before the 7th, 15th, 22nd and last day of
the month during which tax liability to the Department is
incurred in an amount not less than the lower of either 22.5%
of such self-assessing purchaser's actual tax liability for the
month or 25% of such self-assessing purchaser's actual tax
liability for the same calendar month of the preceding year.
The amount of such quarter-monthly payments shall be credited
against the final tax liability of the self-assessing
purchaser's return for that month. An outstanding credit
approved by the Department or a credit memorandum issued by the
Department arising from the self-assessing purchaser's
overpayment of the self-assessing purchaser's final tax
liability for any month may be applied to reduce the amount of
any subsequent quarter-monthly payment or credited against the
final tax liability of such self-assessing purchaser's return
for any subsequent month. If any quarter-monthly payment is not
paid at the time or in the amount required by this Section,
such person shall be liable for penalty and interest on the
difference between the minimum amount due as a payment and the
amount of such payment actually and timely paid, except insofar
as such person has previously made payments for that month to
the Department in excess of the minimum payments previously
due.
If the Director finds that the information required for the
making of an accurate return cannot reasonably be compiled by a

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self-assessing purchaser within 15 days after the close of the
calendar month for which a return is to be made, the Director
may grant an extension of time for the filing of such return
for a period of not to exceed 31 calendar days. The granting of
such an extension may be conditioned upon the deposit by such
self-assessing purchaser with the Department of an amount of
money not exceeding the amount estimated by the Director to be
due with the return so extended. All such deposits shall be
credited against such self-assessing purchaser's liabilities
under this Law. If the deposit exceeds such self-assessing
purchaser's present and probable future liabilities under this
Law, the Department shall issue to such self-assessing
purchaser a credit memorandum, which may be assigned by such
self-assessing purchaser to a similar person under this Law, in
accordance with reasonable rules and regulations to be
prescribed by the Department.
The self-assessing purchaser making the return provided
for in this Section shall, at the time of making such return,
pay to the Department the amount of tax imposed by this Law.
Until October 1, 2002, a self-assessing purchaser who has
an average monthly tax liability of $10,000 or more shall make
all payments required by rules of the Department by electronic
funds transfer. The term "average monthly tax liability" shall
be the sum of the self-assessing purchaser's liabilities under
this Law for the immediately preceding calendar year divided by
12. Beginning on October 1, 2002, a taxpayer who has a tax

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liability in the amount set forth in subsection (b) of Section
2505-210 of the Department of Revenue Law shall make all
payments required by rules of the Department by electronic
funds transfer. Any self-assessing purchaser not required to
make payments by electronic funds transfer may make payments by
electronic funds transfer with the permission of the
Department. All self-assessing purchasers required to make
payments by electronic funds transfer and any self-assessing
purchasers authorized to voluntarily make payments by
electronic funds transfer shall make those payments in the
manner authorized by the Department.
If any payment provided for in this Section exceeds the
self-assessing purchaser's liabilities under this Act, as
shown on an original return, the Department may authorize the
self-assessing purchaser to credit such excess payment against
liability subsequently to be remitted to the Department under
this Act, in accordance with reasonable rules adopted by the
Department.
Through June 30, 2004, each month the Department shall pay
into the Public Utility Fund in the State treasury an amount
determined by the Director to be equal to 3.0% of the funds
received by the Department pursuant to this Section. Through
June 30, 2004, the remainder of all moneys received by the
Department under this Section shall be paid into the General
Revenue Fund in the State treasury. Beginning on July 1, 2004,
of the 3% of the funds received pursuant to this Section, each

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month the Department shall pay $416,667 into the General
Revenue Fund and the balance shall be paid into the Public
Utility Fund in the State treasury.
(Source: P.A. 92-492, eff. 1-1-02; 93-839, eff. 7-30-04.)
Section 103. The Innovation Development and Economy Act is
amended by changing Section 31 as follows:
(50 ILCS 470/31)
Sec. 31. STAR bond occupation taxes.
(a) If the corporate authorities of a political subdivision
have established a STAR bond district and have elected to
impose a tax by ordinance pursuant to subsection (b) or (c) of
this Section, each year after the date of the adoption of the
ordinance and until all STAR bond project costs and all
political subdivision obligations financing the STAR bond
project costs, if any, have been paid in accordance with the
STAR bond project plans, but in no event longer than the
maximum maturity date of the last of the STAR bonds issued for
projects in the STAR bond district, all amounts generated by
the retailers' occupation tax and service occupation tax shall
be collected and the tax shall be enforced by the Department of
Revenue in the same manner as all retailers' occupation taxes
and service occupation taxes imposed in the political
subdivision imposing the tax. The corporate authorities of the
political subdivision shall deposit the proceeds of the taxes

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imposed under subsections (b) and (c) into either (i) a special
fund held by the corporate authorities of the political
subdivision called the STAR Bonds Tax Allocation Fund for the
purpose of paying STAR bond project costs and obligations
incurred in the payment of those costs if such taxes are
designated as pledged STAR revenues by resolution or ordinance
of the political subdivision or (ii) the political
subdivision's general corporate fund if such taxes are not
designated as pledged STAR revenues by resolution or ordinance.
The tax imposed under this Section by a municipality may be
imposed only on the portion of a STAR bond district that is
within the boundaries of the municipality. For any part of a
STAR bond district that lies outside of the boundaries of that
municipality, the municipality in which the other part of the
STAR bond district lies (or the county, in cases where a
portion of the STAR bond district lies in the unincorporated
area of a county) is authorized to impose the tax under this
Section on that part of the STAR bond district.
(b) The corporate authorities of a political subdivision
that has established a STAR bond district under this Act may,
by ordinance or resolution, impose a STAR Bond Retailers'
Occupation Tax upon all persons engaged in the business of
selling tangible personal property, other than an item of
tangible personal property titled or registered with an agency
of this State's government, at retail in the STAR bond district
at a rate not to exceed 1% of the gross receipts from the sales

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made in the course of that business, to be imposed only in
0.25% increments. The tax may not be imposed on tangible
personal property taxed at the 1% rate under the Retailers'
Occupation Tax Act food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, soft drinks, and food that has been
prepared for immediate consumption), prescription and
nonprescription medicines, drugs, medical appliances,
modifications to a motor vehicle for the purpose of rendering
it usable by a person with a disability, and insulin, urine
testing materials, syringes, and needles used by diabetics, for
human use.
The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the Department of Revenue. The
certificate of registration that is issued by the Department to
a retailer under the Retailers' Occupation Tax Act shall permit
the retailer to engage in a business that is taxable under any
ordinance or resolution enacted pursuant to this subsection
without registering separately with the Department under such
ordinance or resolution or under this subsection. The
Department of Revenue shall have full power to administer and
enforce this subsection, to collect all taxes and penalties due
under this subsection in the manner hereinafter provided, and
to determine all rights to credit memoranda arising on account
of the erroneous payment of tax or penalty under this

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subsection. In the administration of, and compliance with, this
subsection, the Department and persons who are subject to this
subsection shall have the same rights, remedies, privileges,
immunities, powers, and duties, and be subject to the same
conditions, restrictions, limitations, penalties, exclusions,
exemptions, and definitions of terms and employ the same modes
of procedure, as are prescribed in Sections 1, 1a through 1o, 2
through 2-65 (in respect to all provisions therein other than
the State rate of tax), 2c through 2h, 3 (except as to the
disposition of taxes and penalties collected), 4, 5, 5a, 5b,
5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10,
11, 12, 13, and 14 of the Retailers' Occupation Tax Act and all
provisions of the Uniform Penalty and Interest Act, as fully as
if those provisions were set forth herein.
If a tax is imposed under this subsection (b), a tax shall
also be imposed under subsection (c) of this Section.
(c) If a tax has been imposed under subsection (b), a STAR
Bond Service Occupation Tax shall also be imposed upon all
persons engaged, in the STAR bond district, in the business of
making sales of service, who, as an incident to making those
sales of service, transfer tangible personal property within
the STAR bond district, either in the form of tangible personal
property or in the form of real estate as an incident to a sale
of service. The tax shall be imposed at the same rate as the
tax imposed in subsection (b) and shall not exceed 1% of the
selling price of tangible personal property so transferred

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within the STAR bond district, to be imposed only in 0.25%
increments. The tax may not be imposed on tangible personal
property taxed at the 1% rate under the Service Occupation Tax
Act food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages, soft
drinks, and food that has been prepared for immediate
consumption), prescription and nonprescription medicines,
drugs, medical appliances, modifications to a motor vehicle for
the purpose of rendering it usable by a person with a
disability, and insulin, urine testing materials, syringes,
and needles used by diabetics, for human use.
The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the Department of Revenue. The
certificate of registration that is issued by the Department to
a retailer under the Retailers' Occupation Tax Act or under the
Service Occupation Tax Act shall permit the registrant to
engage in a business that is taxable under any ordinance or
resolution enacted pursuant to this subsection without
registering separately with the Department under that
ordinance or resolution or under this subsection. The
Department of Revenue shall have full power to administer and
enforce this subsection, to collect all taxes and penalties due
under this subsection, to dispose of taxes and penalties so
collected in the manner hereinafter provided, and to determine
all rights to credit memoranda arising on account of the

SB3445 - 408 - LRB100 20331 HLH 35618 b
erroneous payment of tax or penalty under this subsection. In
the administration of, and compliance with this subsection, the
Department and persons who are subject to this subsection shall
have the same rights, remedies, privileges, immunities,
powers, and duties, and be subject to the same conditions,
restrictions, limitations, penalties, exclusions, exemptions,
and definitions of terms and employ the same modes of procedure
as are prescribed in Sections 2, 2a through 2d, 3 through 3-50
(in respect to all provisions therein other than the State rate
of tax), 4 (except that the reference to the State shall be to
the STAR bond district), 5, 7, 8 (except that the jurisdiction
to which the tax shall be a debt to the extent indicated in
that Section 8 shall be the political subdivision), 9 (except
as to the disposition of taxes and penalties collected, and
except that the returned merchandise credit for this tax may
not be taken against any State tax), 10, 11, 12 (except the
reference therein to Section 2b of the Retailers' Occupation
Tax Act), 13 (except that any reference to the State shall mean
the political subdivision), the first paragraph of Section 15,
and Sections 16, 17, 18, 19 and 20 of the Service Occupation
Tax Act and all provisions of the Uniform Penalty and Interest
Act, as fully as if those provisions were set forth herein.
If a tax is imposed under this subsection (c), a tax shall
also be imposed under subsection (b) of this Section.
(d) Persons subject to any tax imposed under this Section
may reimburse themselves for their seller's tax liability under

SB3445 - 409 - LRB100 20331 HLH 35618 b
this Section by separately stating the tax as an additional
charge, which charge may be stated in combination, in a single
amount, with State taxes that sellers are required to collect
under the Use Tax Act, in accordance with such bracket
schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the STAR Bond Retailers' Occupation Tax Fund.
The Department shall immediately pay over to the State
Treasurer, ex officio, as trustee, all taxes, penalties, and
interest collected under this Section for deposit into the STAR
Bond Retailers' Occupation Tax Fund. On or before the 25th day
of each calendar month, the Department shall prepare and
certify to the Comptroller the disbursement of stated sums of
money to named political subdivisions from the STAR Bond
Retailers' Occupation Tax Fund, the political subdivisions to
be those from which retailers have paid taxes or penalties
under this Section to the Department during the second
preceding calendar month. The amount to be paid to each
political subdivision shall be the amount (not including credit
memoranda) collected under this Section during the second
preceding calendar month by the Department plus an amount the

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Department determines is necessary to offset any amounts that
were erroneously paid to a different taxing body, and not
including an amount equal to the amount of refunds made during
the second preceding calendar month by the Department, less 3%
of that amount, which shall be deposited into the Tax
Compliance and Administration Fund and shall be used by the
Department, subject to appropriation, to cover the costs of the
Department in administering and enforcing the provisions of
this Section, on behalf of such political subdivision, and not
including any amount that the Department determines is
necessary to offset any amounts that were payable to a
different taxing body but were erroneously paid to the
political subdivision. Within 10 days after receipt by the
Comptroller of the disbursement certification to the political
subdivisions provided for in this Section to be given to the
Comptroller by the Department, the Comptroller shall cause the
orders to be drawn for the respective amounts in accordance
with the directions contained in the certification. The
proceeds of the tax paid to political subdivisions under this
Section shall be deposited into either (i) the STAR Bonds Tax
Allocation Fund by the political subdivision if the political
subdivision has designated them as pledged STAR revenues by
resolution or ordinance or (ii) the political subdivision's
general corporate fund if the political subdivision has not
designated them as pledged STAR revenues.
An ordinance or resolution imposing or discontinuing the

SB3445 - 411 - LRB100 20331 HLH 35618 b
tax under this Section or effecting a change in the rate
thereof shall either (i) be adopted and a certified copy
thereof filed with the Department on or before the first day of
April, whereupon the Department, if all other requirements of
this Section are met, shall proceed to administer and enforce
this Section as of the first day of July next following the
adoption and filing; or (ii) be adopted and a certified copy
thereof filed with the Department on or before the first day of
October, whereupon, if all other requirements of this Section
are met, the Department shall proceed to administer and enforce
this Section as of the first day of January next following the
adoption and filing.
The Department of Revenue shall not administer or enforce
an ordinance imposing, discontinuing, or changing the rate of
the tax under this Section until the political subdivision also
provides, in the manner prescribed by the Department, the
boundaries of the STAR bond district and each address in the
STAR bond district in such a way that the Department can
determine by its address whether a business is located in the
STAR bond district. The political subdivision must provide this
boundary and address information to the Department on or before
April 1 for administration and enforcement of the tax under
this Section by the Department beginning on the following July
1 and on or before October 1 for administration and enforcement
of the tax under this Section by the Department beginning on
the following January 1. The Department of Revenue shall not

SB3445 - 412 - LRB100 20331 HLH 35618 b
administer or enforce any change made to the boundaries of a
STAR bond district or any address change, addition, or deletion
until the political subdivision reports the boundary change or
address change, addition, or deletion to the Department in the
manner prescribed by the Department. The political subdivision
must provide this boundary change or address change, addition,
or deletion information to the Department on or before April 1
for administration and enforcement by the Department of the
change, addition, or deletion beginning on the following July 1
and on or before October 1 for administration and enforcement
by the Department of the change, addition, or deletion
beginning on the following January 1. The retailers in the STAR
bond district shall be responsible for charging the tax imposed
under this Section. If a retailer is incorrectly included or
excluded from the list of those required to collect the tax
under this Section, both the Department of Revenue and the
retailer shall be held harmless if they reasonably relied on
information provided by the political subdivision.
A political subdivision that imposes the tax under this
Section must submit to the Department of Revenue any other
information as the Department may require that is necessary for
the administration and enforcement of the tax.
When certifying the amount of a monthly disbursement to a
political subdivision under this Section, the Department shall
increase or decrease the amount by an amount necessary to
offset any misallocation of previous disbursements. The offset

SB3445 - 413 - LRB100 20331 HLH 35618 b
amount shall be the amount erroneously disbursed within the
previous 6 months from the time a misallocation is discovered.
Nothing in this Section shall be construed to authorize the
political subdivision to impose a tax upon the privilege of
engaging in any business which under the Constitution of the
United States may not be made the subject of taxation by this
State.
(e) When STAR bond project costs, including, without
limitation, all political subdivision obligations financing
STAR bond project costs, have been paid, any surplus funds then
remaining in the STAR Bonds Tax Allocation Fund shall be
distributed to the treasurer of the political subdivision for
deposit into the political subdivision's general corporate
fund. Upon payment of all STAR bond project costs and
retirement of obligations, but in no event later than the
maximum maturity date of the last of the STAR bonds issued in
the STAR bond district, the political subdivision shall adopt
an ordinance immediately rescinding the taxes imposed pursuant
to this Section and file a certified copy of the ordinance with
the Department in the form and manner as described in this
Section.
(Source: P.A. 99-143, eff. 7-27-15.)
Section 105. The Counties Code is amended by changing
Sections 5-1006, 5-1006.5, 5-1006.7, 5-1007, and 5-1008.5 as
follows:

SB3445 - 414 - LRB100 20331 HLH 35618 b
(55 ILCS 5/5-1006) (from Ch. 34, par. 5-1006)
Sec. 5-1006. Home Rule County Retailers' Occupation Tax
Law. Any county that is a home rule unit may impose a tax upon
all persons engaged in the business of selling tangible
personal property, other than an item of tangible personal
property titled or registered with an agency of this State's
government, at retail in the county on the gross receipts from
such sales made in the course of their business. If imposed,
this tax shall only be imposed in 1/4% increments. On and after
September 1, 1991, this additional tax may not be imposed on
tangible personal property taxed at the 1% rate under the
Retailers' Occupation Tax Act the sales of food for human
consumption which is to be consumed off the premises where it
is sold (other than alcoholic beverages, soft drinks and food
which has been prepared for immediate consumption) and
prescription and nonprescription medicines, drugs, medical
appliances and insulin, urine testing materials, syringes and
needles used by diabetics. The tax imposed by a home rule
county pursuant to this Section and all civil penalties that
may be assessed as an incident thereof shall be collected and
enforced by the State Department of Revenue. The certificate of
registration that is issued by the Department to a retailer
under the Retailers' Occupation Tax Act shall permit the
retailer to engage in a business that is taxable under any
ordinance or resolution enacted pursuant to this Section

SB3445 - 415 - LRB100 20331 HLH 35618 b
without registering separately with the Department under such
ordinance or resolution or under this Section. The Department
shall have full power to administer and enforce this Section;
to collect all taxes and penalties due hereunder; to dispose of
taxes and penalties so collected in the manner hereinafter
provided; and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty
hereunder. In the administration of, and compliance with, this
Section, the Department and persons who are subject to this
Section shall have the same rights, remedies, privileges,
immunities, powers and duties, and be subject to the same
conditions, restrictions, limitations, penalties and
definitions of terms, and employ the same modes of procedure,
as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j,
1k, 1m, 1n, 2 through 2-65 (in respect to all provisions
therein other than the State rate of tax), 4, 5, 5a, 5b, 5c,
5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9,
10, 11, 12 and 13 of the Retailers' Occupation Tax Act and
Section 3-7 of the Uniform Penalty and Interest Act, as fully
as if those provisions were set forth herein.
No tax may be imposed by a home rule county pursuant to
this Section unless the county also imposes a tax at the same
rate pursuant to Section 5-1007.
Persons subject to any tax imposed pursuant to the
authority granted in this Section may reimburse themselves for
their seller's tax liability hereunder by separately stating

SB3445 - 416 - LRB100 20331 HLH 35618 b
such tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax which sellers
are required to collect under the Use Tax Act, pursuant to such
bracket schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the home rule county retailers' occupation tax
fund.
The Department shall forthwith pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties
collected hereunder.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected under this Section
during the second preceding calendar month for sales within a
STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the

SB3445 - 417 - LRB100 20331 HLH 35618 b
disbursement of stated sums of money to named counties, the
counties to be those from which retailers have paid taxes or
penalties hereunder to the Department during the second
preceding calendar month. The amount to be paid to each county
shall be the amount (not including credit memoranda) collected
hereunder during the second preceding calendar month by the
Department plus an amount the Department determines is
necessary to offset any amounts that were erroneously paid to a
different taxing body, and not including an amount equal to the
amount of refunds made during the second preceding calendar
month by the Department on behalf of such county, and not
including any amount which the Department determines is
necessary to offset any amounts which were payable to a
different taxing body but were erroneously paid to the county,
and not including any amounts that are transferred to the STAR
Bonds Revenue Fund, less 2% of the remainder, which the
Department shall transfer into the Tax Compliance and
Administration Fund. The Department, at the time of each
monthly disbursement to the counties, shall prepare and certify
to the State Comptroller the amount to be transferred into the
Tax Compliance and Administration Fund under this Section.
Within 10 days after receipt, by the Comptroller, of the
disbursement certification to the counties and the Tax
Compliance and Administration Fund provided for in this Section
to be given to the Comptroller by the Department, the
Comptroller shall cause the orders to be drawn for the

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respective amounts in accordance with the directions contained
in the certification.
In addition to the disbursement required by the preceding
paragraph, an allocation shall be made in March of each year to
each county that received more than $500,000 in disbursements
under the preceding paragraph in the preceding calendar year.
The allocation shall be in an amount equal to the average
monthly distribution made to each such county under the
preceding paragraph during the preceding calendar year
(excluding the 2 months of highest receipts). The distribution
made in March of each year subsequent to the year in which an
allocation was made pursuant to this paragraph and the
preceding paragraph shall be reduced by the amount allocated
and disbursed under this paragraph in the preceding calendar
year. The Department shall prepare and certify to the
Comptroller for disbursement the allocations made in
accordance with this paragraph.
For the purpose of determining the local governmental unit
whose tax is applicable, a retail sale by a producer of coal or
other mineral mined in Illinois is a sale at retail at the
place where the coal or other mineral mined in Illinois is
extracted from the earth. This paragraph does not apply to coal
or other mineral when it is delivered or shipped by the seller
to the purchaser at a point outside Illinois so that the sale
is exempt under the United States Constitution as a sale in
interstate or foreign commerce.

SB3445 - 419 - LRB100 20331 HLH 35618 b
Nothing in this Section shall be construed to authorize a
county to impose a tax upon the privilege of engaging in any
business which under the Constitution of the United States may
not be made the subject of taxation by this State.
An ordinance or resolution imposing or discontinuing a tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of June, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of September next following such adoption and filing.
Beginning January 1, 1992, an ordinance or resolution imposing
or discontinuing the tax hereunder or effecting a change in the
rate thereof shall be adopted and a certified copy thereof
filed with the Department on or before the first day of July,
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of October next
following such adoption and filing. Beginning January 1, 1993,
an ordinance or resolution imposing or discontinuing the tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of October, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of January next following such adoption and filing.
Beginning April 1, 1998, an ordinance or resolution imposing or
discontinuing the tax hereunder or effecting a change in the
rate thereof shall either (i) be adopted and a certified copy

SB3445 - 420 - LRB100 20331 HLH 35618 b
thereof filed with the Department on or before the first day of
April, whereupon the Department shall proceed to administer and
enforce this Section as of the first day of July next following
the adoption and filing; or (ii) be adopted and a certified
copy thereof filed with the Department on or before the first
day of October, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of
January next following the adoption and filing.
When certifying the amount of a monthly disbursement to a
county under this Section, the Department shall increase or
decrease such amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous 6
months from the time a misallocation is discovered.
This Section shall be known and may be cited as the Home
Rule County Retailers' Occupation Tax Law.
(Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17.)
(55 ILCS 5/5-1006.5)
Sec. 5-1006.5. Special County Retailers' Occupation Tax
For Public Safety, Public Facilities, or Transportation.
(a) The county board of any county may impose a tax upon
all persons engaged in the business of selling tangible
personal property, other than personal property titled or
registered with an agency of this State's government, at retail
in the county on the gross receipts from the sales made in the

SB3445 - 421 - LRB100 20331 HLH 35618 b
course of business to provide revenue to be used exclusively
for public safety, public facility, or transportation purposes
in that county, if a proposition for the tax has been submitted
to the electors of that county and approved by a majority of
those voting on the question. If imposed, this tax shall be
imposed only in one-quarter percent increments. By resolution,
the county board may order the proposition to be submitted at
any election. If the tax is imposed for transportation purposes
for expenditures for public highways or as authorized under the
Illinois Highway Code, the county board must publish notice of
the existence of its long-range highway transportation plan as
required or described in Section 5-301 of the Illinois Highway
Code and must make the plan publicly available prior to
approval of the ordinance or resolution imposing the tax. If
the tax is imposed for transportation purposes for expenditures
for passenger rail transportation, the county board must
publish notice of the existence of its long-range passenger
rail transportation plan and must make the plan publicly
available prior to approval of the ordinance or resolution
imposing the tax.
If a tax is imposed for public facilities purposes, then
the name of the project may be included in the proposition at
the discretion of the county board as determined in the
enabling resolution. For example, the "XXX Nursing Home" or the
"YYY Museum".
The county clerk shall certify the question to the proper

SB3445 - 422 - LRB100 20331 HLH 35618 b
election authority, who shall submit the proposition at an
election in accordance with the general election law.
(1) The proposition for public safety purposes shall be
in substantially the following form:
"To pay for public safety purposes, shall (name of
county) be authorized to impose an increase on its share of
local sales taxes by (insert rate)?"
As additional information on the ballot below the
question shall appear the following:
"This would mean that a consumer would pay an
additional (insert amount) in sales tax for every $100 of
tangible personal property bought at retail."
The county board may also opt to establish a sunset
provision at which time the additional sales tax would
cease being collected, if not terminated earlier by a vote
of the county board. If the county board votes to include a
sunset provision, the proposition for public safety
purposes shall be in substantially the following form:
"To pay for public safety purposes, shall (name of
county) be authorized to impose an increase on its share of
local sales taxes by (insert rate) for a period not to
exceed (insert number of years)?"
As additional information on the ballot below the
question shall appear the following:
"This would mean that a consumer would pay an
additional (insert amount) in sales tax for every $100 of

SB3445 - 423 - LRB100 20331 HLH 35618 b
tangible personal property bought at retail. If imposed,
the additional tax would cease being collected at the end
of (insert number of years), if not terminated earlier by a
vote of the county board."
For the purposes of the paragraph, "public safety
purposes" means crime prevention, detention, fire
fighting, police, medical, ambulance, or other emergency
services.
Votes shall be recorded as "Yes" or "No".
Beginning on the January 1 or July 1, whichever is
first, that occurs not less than 30 days after May 31, 2015
(the effective date of Public Act 99-4), Adams County may
impose a public safety retailers' occupation tax and
service occupation tax at the rate of 0.25%, as provided in
the referendum approved by the voters on April 7, 2015,
notwithstanding the omission of the additional information
that is otherwise required to be printed on the ballot
below the question pursuant to this item (1).
(2) The proposition for transportation purposes shall
be in substantially the following form:
"To pay for improvements to roads and other
transportation purposes, shall (name of county) be
authorized to impose an increase on its share of local
sales taxes by (insert rate)?"
As additional information on the ballot below the
question shall appear the following:

SB3445 - 424 - LRB100 20331 HLH 35618 b
"This would mean that a consumer would pay an
additional (insert amount) in sales tax for every $100 of
tangible personal property bought at retail."
The county board may also opt to establish a sunset
provision at which time the additional sales tax would
cease being collected, if not terminated earlier by a vote
of the county board. If the county board votes to include a
sunset provision, the proposition for transportation
purposes shall be in substantially the following form:
"To pay for road improvements and other transportation
purposes, shall (name of county) be authorized to impose an
increase on its share of local sales taxes by (insert rate)
for a period not to exceed (insert number of years)?"
As additional information on the ballot below the
question shall appear the following:
"This would mean that a consumer would pay an
additional (insert amount) in sales tax for every $100 of
tangible personal property bought at retail. If imposed,
the additional tax would cease being collected at the end
of (insert number of years), if not terminated earlier by a
vote of the county board."
For the purposes of this paragraph, transportation
purposes means construction, maintenance, operation, and
improvement of public highways, any other purpose for which
a county may expend funds under the Illinois Highway Code,
and passenger rail transportation.

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

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the additional tax would cease being collected at the end
of (insert number of years), if not terminated earlier by a
vote of the county board."
For purposes of this Section, "public facilities
purposes" means the acquisition, development,
construction, reconstruction, rehabilitation, improvement,
financing, architectural planning, and installation of
capital facilities consisting of buildings, structures,
and durable equipment and for the acquisition and
improvement of real property and interest in real property
required, or expected to be required, in connection with
the public facilities, for use by the county for the
furnishing of governmental services to its citizens,
including but not limited to museums and nursing homes.
The votes shall be recorded as "Yes" or "No".
If a majority of the electors voting on the proposition
vote in favor of it, the county may impose the tax. A county
may not submit more than one proposition authorized by this
Section to the electors at any one time.
This additional tax may not be imposed on the sales of
tangible personal property taxed at the 1% rate under the
Retailers' Occupation Tax Act food for human consumption that
is to be consumed off the premises where it is sold (other than
alcoholic beverages, soft drinks, and food which has been
prepared for immediate consumption) and prescription and
non-prescription medicines, drugs, medical appliances and

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insulin, urine testing materials, syringes, and needles used by
diabetics. The tax imposed by a county under this Section and
all civil penalties that may be assessed as an incident of the
tax shall be collected and enforced by the Illinois Department
of Revenue and deposited into a special fund created for that
purpose. The certificate of registration that is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act shall permit the retailer to engage in a business that is
taxable without registering separately with the Department
under an ordinance or resolution under this Section. The
Department has full power to administer and enforce this
Section, to collect all taxes and penalties due under this
Section, to dispose of taxes and penalties so collected in the
manner provided in this Section, and to determine all rights to
credit memoranda arising on account of the erroneous payment of
a tax or penalty under this Section. In the administration of
and compliance with this Section, the Department and persons
who are subject to this Section shall (i) have the same rights,
remedies, privileges, immunities, powers, and duties, (ii) be
subject to the same conditions, restrictions, limitations,
penalties, and definitions of terms, and (iii) employ the same
modes of procedure as are prescribed in Sections 1, 1a, 1a-1,
1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-70 (in respect to
all provisions contained in those Sections other than the State
rate of tax), 2a, 2b, 2c, 3 (except provisions relating to
transaction returns and quarter monthly payments), 4, 5, 5a,

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5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d,
7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation
Tax Act and Section 3-7 of the Uniform Penalty and Interest Act
as if those provisions were set forth in this Section.
Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
sellers' tax liability by separately stating the tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State tax which sellers are required
to collect under the Use Tax Act, pursuant to such bracketed
schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the County Public Safety or Transportation
Retailers' Occupation Tax Fund.
(b) If a tax has been imposed under subsection (a), a
service occupation tax shall also be imposed at the same rate
upon all persons engaged, in the county, in the business of
making sales of service, who, as an incident to making those
sales of service, transfer tangible personal property within
the county as an incident to a sale of service. This tax may
not be imposed on sales of tangible personal property taxed at

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the 1% rate under the Service Occupation Tax Act food for human
consumption that is to be consumed off the premises where it is
sold (other than alcoholic beverages, soft drinks, and food
prepared for immediate consumption) and prescription and
non-prescription medicines, drugs, medical appliances and
insulin, urine testing materials, syringes, and needles used by
diabetics. The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the Department of Revenue. The
Department has full power to administer and enforce this
subsection; to collect all taxes and penalties due hereunder;
to dispose of taxes and penalties so collected in the manner
hereinafter provided; and to determine all rights to credit
memoranda arising on account of the erroneous payment of tax or
penalty hereunder. In the administration of, and compliance
with this subsection, the Department and persons who are
subject to this paragraph shall (i) have the same rights,
remedies, privileges, immunities, powers, and duties, (ii) be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions, and definitions of terms,
and (iii) employ the same modes of procedure as are prescribed
in Sections 2 (except that the reference to State in the
definition of supplier maintaining a place of business in this
State shall mean the county), 2a, 2b, 2c, 3 through 3-50 (in
respect to all provisions therein other than the State rate of
tax), 4 (except that the reference to the State shall be to the

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county), 5, 7, 8 (except that the jurisdiction to which the tax
shall be a debt to the extent indicated in that Section 8 shall
be the county), 9 (except as to the disposition of taxes and
penalties collected), 10, 11, 12 (except the reference therein
to Section 2b of the Retailers' Occupation Tax Act), 13 (except
that any reference to the State shall mean the county), Section
15, 16, 17, 18, 19 and 20 of the Service Occupation Tax Act and
Section 3-7 of the Uniform Penalty and Interest Act, as fully
as if those provisions were set forth herein.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability by separately stating the tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State tax that servicemen are
authorized to collect under the Service Use Tax Act, in
accordance with such bracket schedules as the Department may
prescribe.
Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the County Public Safety or Transportation
Retailers' Occupation Fund.
Nothing in this subsection shall be construed to authorize

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the county to impose a tax upon the privilege of engaging in
any business which under the Constitution of the United States
may not be made the subject of taxation by the State.
(c) The Department shall immediately pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties
collected under this Section to be deposited into the County
Public Safety or Transportation Retailers' Occupation Tax
Fund, which shall be an unappropriated trust fund held outside
of the State treasury.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected under this Section
during the second preceding calendar month for sales within a
STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to the counties from which
retailers have paid taxes or penalties to the Department during
the second preceding calendar month. The amount to be paid to
each county, and deposited by the county into its special fund
created for the purposes of this Section, shall be the amount
(not including credit memoranda) collected under this Section

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during the second preceding calendar month by the Department
plus an amount the Department determines is necessary to offset
any amounts that were erroneously paid to a different taxing
body, and not including (i) an amount equal to the amount of
refunds made during the second preceding calendar month by the
Department on behalf of the county, (ii) any amount that the
Department determines is necessary to offset any amounts that
were payable to a different taxing body but were erroneously
paid to the county, (iii) any amounts that are transferred to
the STAR Bonds Revenue Fund, and (iv) 2% of the remainder,
which shall be transferred into the Tax Compliance and
Administration Fund. The Department, at the time of each
monthly disbursement to the counties, shall prepare and certify
to the State Comptroller the amount to be transferred into the
Tax Compliance and Administration Fund under this subsection.
Within 10 days after receipt by the Comptroller of the
disbursement certification to the counties and the Tax
Compliance and Administration Fund provided for in this Section
to be given to the Comptroller by the Department, the
Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with directions contained in
the certification.
In addition to the disbursement required by the preceding
paragraph, an allocation shall be made in March of each year to
each county that received more than $500,000 in disbursements
under the preceding paragraph in the preceding calendar year.

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The allocation shall be in an amount equal to the average
monthly distribution made to each such county under the
preceding paragraph during the preceding calendar year
(excluding the 2 months of highest receipts). The distribution
made in March of each year subsequent to the year in which an
allocation was made pursuant to this paragraph and the
preceding paragraph shall be reduced by the amount allocated
and disbursed under this paragraph in the preceding calendar
year. The Department shall prepare and certify to the
Comptroller for disbursement the allocations made in
accordance with this paragraph.
A county may direct, by ordinance, that all or a portion of
the taxes and penalties collected under the Special County
Retailers' Occupation Tax For Public Safety or Transportation
be deposited into the Transportation Development Partnership
Trust Fund.
(d) For the purpose of determining the local governmental
unit whose tax is applicable, a retail sale by a producer of
coal or another mineral mined in Illinois is a sale at retail
at the place where the coal or other mineral mined in Illinois
is extracted from the earth. This paragraph does not apply to
coal or another mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the United States Constitution as a sale
in interstate or foreign commerce.
(e) Nothing in this Section shall be construed to authorize

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a county to impose a tax upon the privilege of engaging in any
business that under the Constitution of the United States may
not be made the subject of taxation by this State.
(e-5) If a county imposes a tax under this Section, the
county board may, by ordinance, discontinue or lower the rate
of the tax. If the county board lowers the tax rate or
discontinues the tax, a referendum must be held in accordance
with subsection (a) of this Section in order to increase the
rate of the tax or to reimpose the discontinued tax.
(f) Beginning April 1, 1998 and through December 31, 2013,
the results of any election authorizing a proposition to impose
a tax under this Section or effecting a change in the rate of
tax, or any ordinance lowering the rate or discontinuing the
tax, shall be certified by the county clerk and filed with the
Illinois Department of Revenue either (i) on or before the
first day of April, whereupon the Department shall proceed to
administer and enforce the tax as of the first day of July next
following the filing; or (ii) on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce the tax as of the first day of January next
following the filing.
Beginning January 1, 2014, the results of any election
authorizing a proposition to impose a tax under this Section or
effecting an increase in the rate of tax, along with the
ordinance adopted to impose the tax or increase the rate of the
tax, or any ordinance adopted to lower the rate or discontinue

SB3445 - 435 - LRB100 20331 HLH 35618 b
the tax, shall be certified by the county clerk and filed with
the Illinois Department of Revenue either (i) on or before the
first day of May, whereupon the Department shall proceed to
administer and enforce the tax as of the first day of July next
following the adoption and filing; or (ii) on or before the
first day of October, whereupon the Department shall proceed to
administer and enforce the tax as of the first day of January
next following the adoption and filing.
(g) When certifying the amount of a monthly disbursement to
a county under this Section, the Department shall increase or
decrease the amounts by an amount necessary to offset any
miscalculation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous 6
months from the time a miscalculation is discovered.
(h) This Section may be cited as the "Special County
Occupation Tax For Public Safety, Public Facilities, or
Transportation Law".
(i) For purposes of this Section, "public safety" includes,
but is not limited to, crime prevention, detention, fire
fighting, police, medical, ambulance, or other emergency
services. The county may share tax proceeds received under this
Section for public safety purposes, including proceeds
received before August 4, 2009 (the effective date of Public
Act 96-124), with any fire protection district located in the
county. For the purposes of this Section, "transportation"
includes, but is not limited to, the construction, maintenance,

SB3445 - 436 - LRB100 20331 HLH 35618 b
operation, and improvement of public highways, any other
purpose for which a county may expend funds under the Illinois
Highway Code, and passenger rail transportation. For the
purposes of this Section, "public facilities purposes"
includes, but is not limited to, the acquisition, development,
construction, reconstruction, rehabilitation, improvement,
financing, architectural planning, and installation of capital
facilities consisting of buildings, structures, and durable
equipment and for the acquisition and improvement of real
property and interest in real property required, or expected to
be required, in connection with the public facilities, for use
by the county for the furnishing of governmental services to
its citizens, including but not limited to museums and nursing
homes.
(j) The Department may promulgate rules to implement Public
Act 95-1002 only to the extent necessary to apply the existing
rules for the Special County Retailers' Occupation Tax for
Public Safety to this new purpose for public facilities.
(Source: P.A. 99-4, eff. 5-31-15; 99-217, eff. 7-31-15; 99-642,
eff. 7-28-16; 100-23, eff. 7-6-17.)
(55 ILCS 5/5-1006.7)
Sec. 5-1006.7. School facility occupation taxes.
(a) In any county, a tax shall be imposed upon all persons
engaged in the business of selling tangible personal property,
other than personal property titled or registered with an

SB3445 - 437 - LRB100 20331 HLH 35618 b
agency of this State's government, at retail in the county on
the gross receipts from the sales made in the course of
business to provide revenue to be used exclusively for school
facility purposes if a proposition for the tax has been
submitted to the electors of that county and approved by a
majority of those voting on the question as provided in
subsection (c). The tax under this Section shall be imposed
only in one-quarter percent increments and may not exceed 1%.
This additional tax may not be imposed on the sale of
tangible personal property taxed at the 1% rate under the
Retailers' Occupation Tax Act food for human consumption that
is to be consumed off the premises where it is sold (other than
alcoholic beverages, soft drinks, and food that has been
prepared for immediate consumption) and prescription and
non-prescription medicines, drugs, medical appliances and
insulin, urine testing materials, syringes and needles used by
diabetics. The Department of Revenue has full power to
administer and enforce this subsection, to collect all taxes
and penalties due under this subsection, to dispose of taxes
and penalties so collected in the manner provided in this
subsection, and to determine all rights to credit memoranda
arising on account of the erroneous payment of a tax or penalty
under this subsection. The Department shall deposit all taxes
and penalties collected under this subsection into a special
fund created for that purpose.
In the administration of and compliance with this

SB3445 - 438 - LRB100 20331 HLH 35618 b
subsection, the Department and persons who are subject to this
subsection (i) have the same rights, remedies, privileges,
immunities, powers, and duties, (ii) are subject to the same
conditions, restrictions, limitations, penalties, and
definitions of terms, and (iii) shall employ the same modes of
procedure as are set forth in Sections 1 through 1o, 2 through
2-70 (in respect to all provisions contained in those Sections
other than the State rate of tax), 2a through 2h, 3 (except as
to the disposition of taxes and penalties collected), 4, 5, 5a,
5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d,
7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation
Tax Act and all provisions of the Uniform Penalty and Interest
Act as if those provisions were set forth in this subsection.
The certificate of registration that is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act permits the retailer to engage in a business that is
taxable without registering separately with the Department
under an ordinance or resolution under this subsection.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
seller's tax liability by separately stating that tax as an
additional charge, which may be stated in combination, in a
single amount, with State tax that sellers are required to
collect under the Use Tax Act, pursuant to any bracketed
schedules set forth by the Department.
(b) If a tax has been imposed under subsection (a), then a

SB3445 - 439 - LRB100 20331 HLH 35618 b
service occupation tax must also be imposed at the same rate
upon all persons engaged, in the county, in the business of
making sales of service, who, as an incident to making those
sales of service, transfer tangible personal property within
the county as an incident to a sale of service.
This tax may not be imposed on sales of tangible personal
property taxed at the 1% rate under the Service Occupation Tax
Act food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages, soft
drinks, and food prepared for immediate consumption) and
prescription and non-prescription medicines, drugs, medical
appliances and insulin, urine testing materials, syringes, and
needles used by diabetics.
The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the Department and deposited into a
special fund created for that purpose. The Department has full
power to administer and enforce this subsection, to collect all
taxes and penalties due under this subsection, to dispose of
taxes and penalties so collected in the manner provided in this
subsection, and to determine all rights to credit memoranda
arising on account of the erroneous payment of a tax or penalty
under this subsection.
In the administration of and compliance with this
subsection, the Department and persons who are subject to this
subsection shall (i) have the same rights, remedies,

SB3445 - 440 - LRB100 20331 HLH 35618 b
privileges, immunities, powers and duties, (ii) be subject to
the same conditions, restrictions, limitations, penalties and
definition of terms, and (iii) employ the same modes of
procedure as are set forth in Sections 2 (except that that
reference to State in the definition of supplier maintaining a
place of business in this State means the county), 2a through
2d, 3 through 3-50 (in respect to all provisions contained in
those Sections other than the State rate of tax), 4 (except
that the reference to the State shall be to the county), 5, 7,
8 (except that the jurisdiction to which the tax is a debt to
the extent indicated in that Section 8 is the county), 9
(except as to the disposition of taxes and penalties
collected), 10, 11, 12 (except the reference therein to Section
2b of the Retailers' Occupation Tax Act), 13 (except that any
reference to the State means the county), Section 15, 16, 17,
18, 19, and 20 of the Service Occupation Tax Act and all
provisions of the Uniform Penalty and Interest Act, as fully as
if those provisions were set forth herein.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability by separately stating the tax as an
additional charge, which may be stated in combination, in a
single amount, with State tax that servicemen are authorized to
collect under the Service Use Tax Act, pursuant to any
bracketed schedules set forth by the Department.
(c) The tax under this Section may not be imposed until the

SB3445 - 441 - LRB100 20331 HLH 35618 b
question of imposing the tax has been submitted to the electors
of the county at a regular election and approved by a majority
of the electors voting on the question. For all regular
elections held prior to August 23, 2011 (the effective date of
Public Act 97-542), upon a resolution by the county board or a
resolution by school district boards that represent at least
51% of the student enrollment within the county, the county
board must certify the question to the proper election
authority in accordance with the Election Code.
For all regular elections held prior to August 23, 2011
(the effective date of Public Act 97-542), the election
authority must submit the question in substantially the
following form:
Shall (name of county) be authorized to impose a
retailers' occupation tax and a service occupation tax
(commonly referred to as a "sales tax") at a rate of
(insert rate) to be used exclusively for school facility
purposes?
The election authority must record the votes as "Yes" or "No".
If a majority of the electors voting on the question vote
in the affirmative, then the county may, thereafter, impose the
tax.
For all regular elections held on or after August 23, 2011
(the effective date of Public Act 97-542), the regional
superintendent of schools for the county must, upon receipt of
a resolution or resolutions of school district boards that

SB3445 - 442 - LRB100 20331 HLH 35618 b
represent more than 50% of the student enrollment within the
county, certify the question to the proper election authority
for submission to the electors of the county at the next
regular election at which the question lawfully may be
submitted to the electors, all in accordance with the Election
Code.
For all regular elections held on or after August 23, 2011
(the effective date of Public Act 97-542), the election
authority must submit the question in substantially the
following form:
Shall a retailers' occupation tax and a service
occupation tax (commonly referred to as a "sales tax") be
imposed in (name of county) at a rate of (insert rate) to
be used exclusively for school facility purposes?
The election authority must record the votes as "Yes" or "No".
If a majority of the electors voting on the question vote
in the affirmative, then the tax shall be imposed at the rate
set forth in the question.
For the purposes of this subsection (c), "enrollment" means
the head count of the students residing in the county on the
last school day of September of each year, which must be
reported on the Illinois State Board of Education Public School
Fall Enrollment/Housing Report.
(d) The Department shall immediately pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties
collected under this Section to be deposited into the School

SB3445 - 443 - LRB100 20331 HLH 35618 b
Facility Occupation Tax Fund, which shall be an unappropriated
trust fund held outside the State treasury.
On or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to the regional
superintendents of schools in counties from which retailers or
servicemen have paid taxes or penalties to the Department
during the second preceding calendar month. The amount to be
paid to each regional superintendent of schools and disbursed
to him or her in accordance with Section 3-14.31 of the School
Code, is equal to the amount (not including credit memoranda)
collected from the county under this Section during the second
preceding calendar month by the Department, (i) less 2% of that
amount, which shall be deposited into the Tax Compliance and
Administration Fund and shall be used by the Department,
subject to appropriation, to cover the costs of the Department
in administering and enforcing the provisions of this Section,
on behalf of the county, (ii) plus an amount that the
Department determines is necessary to offset any amounts that
were erroneously paid to a different taxing body; (iii) less an
amount equal to the amount of refunds made during the second
preceding calendar month by the Department on behalf of the
county; and (iv) less any amount that the Department determines
is necessary to offset any amounts that were payable to a
different taxing body but were erroneously paid to the county.
When certifying the amount of a monthly disbursement to a

SB3445 - 444 - LRB100 20331 HLH 35618 b
regional superintendent of schools under this Section, the
Department shall increase or decrease the amounts by an amount
necessary to offset any miscalculation of previous
disbursements within the previous 6 months from the time a
miscalculation is discovered.
Within 10 days after receipt by the Comptroller from the
Department of the disbursement certification to the regional
superintendents of the schools provided for in this Section,
the Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with directions contained in
the certification.
If the Department determines that a refund should be made
under this Section to a claimant instead of issuing a credit
memorandum, then the Department shall notify the Comptroller,
who shall cause the order to be drawn for the amount specified
and to the person named in the notification from the
Department. The refund shall be paid by the Treasurer out of
the School Facility Occupation Tax Fund.
(e) For the purposes of determining the local governmental
unit whose tax is applicable, a retail sale by a producer of
coal or another mineral mined in Illinois is a sale at retail
at the place where the coal or other mineral mined in Illinois
is extracted from the earth. This subsection does not apply to
coal or another mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the United States Constitution as a sale

SB3445 - 445 - LRB100 20331 HLH 35618 b
in interstate or foreign commerce.
(f) Nothing in this Section may be construed to authorize a
tax to be imposed upon the privilege of engaging in any
business that under the Constitution of the United States may
not be made the subject of taxation by this State.
(g) If a county board imposes a tax under this Section
pursuant to a referendum held before August 23, 2011 (the
effective date of Public Act 97-542) at a rate below the rate
set forth in the question approved by a majority of electors of
that county voting on the question as provided in subsection
(c), then the county board may, by ordinance, increase the rate
of the tax up to the rate set forth in the question approved by
a majority of electors of that county voting on the question as
provided in subsection (c). If a county board imposes a tax
under this Section pursuant to a referendum held before August
23, 2011 (the effective date of Public Act 97-542), then the
board may, by ordinance, discontinue or reduce the rate of the
tax. If a tax is imposed under this Section pursuant to a
referendum held on or after August 23, 2011 (the effective date
of Public Act 97-542), then the county board may reduce or
discontinue the tax, but only in accordance with subsection
(h-5) of this Section. If, however, a school board issues bonds
that are secured by the proceeds of the tax under this Section,
then the county board may not reduce the tax rate or
discontinue the tax if that rate reduction or discontinuance
would adversely affect the school board's ability to pay the

SB3445 - 446 - LRB100 20331 HLH 35618 b
principal and interest on those bonds as they become due or
necessitate the extension of additional property taxes to pay
the principal and interest on those bonds. If the county board
reduces the tax rate or discontinues the tax, then a referendum
must be held in accordance with subsection (c) of this Section
in order to increase the rate of the tax or to reimpose the
discontinued tax.
Until January 1, 2014, the results of any election that
imposes, reduces, or discontinues a tax under this Section must
be certified by the election authority, and any ordinance that
increases or lowers the rate or discontinues the tax must be
certified by the county clerk and, in each case, filed with the
Illinois Department of Revenue either (i) on or before the
first day of April, whereupon the Department shall proceed to
administer and enforce the tax or change in the rate as of the
first day of July next following the filing; or (ii) on or
before the first day of October, whereupon the Department shall
proceed to administer and enforce the tax or change in the rate
as of the first day of January next following the filing.
Beginning January 1, 2014, the results of any election that
imposes, reduces, or discontinues a tax under this Section must
be certified by the election authority, and any ordinance that
increases or lowers the rate or discontinues the tax must be
certified by the county clerk and, in each case, filed with the
Illinois Department of Revenue either (i) on or before the
first day of May, whereupon the Department shall proceed to

SB3445 - 447 - LRB100 20331 HLH 35618 b
administer and enforce the tax or change in the rate as of the
first day of July next following the filing; or (ii) on or
before the first day of October, whereupon the Department shall
proceed to administer and enforce the tax or change in the rate
as of the first day of January next following the filing.
(h) For purposes of this Section, "school facility
purposes" means (i) the acquisition, development,
construction, reconstruction, rehabilitation, improvement,
financing, architectural planning, and installation of capital
facilities consisting of buildings, structures, and durable
equipment and for the acquisition and improvement of real
property and interest in real property required, or expected to
be required, in connection with the capital facilities and (ii)
the payment of bonds or other obligations heretofore or
hereafter issued, including bonds or other obligations
heretofore or hereafter issued to refund or to continue to
refund bonds or other obligations issued, for school facility
purposes, provided that the taxes levied to pay those bonds are
abated by the amount of the taxes imposed under this Section
that are used to pay those bonds. "School-facility purposes"
also includes fire prevention, safety, energy conservation,
accessibility, school security, and specified repair purposes
set forth under Section 17-2.11 of the School Code.
(h-5) A county board in a county where a tax has been
imposed under this Section pursuant to a referendum held on or
after August 23, 2011 (the effective date of Public Act 97-542)

SB3445 - 448 - LRB100 20331 HLH 35618 b
may, by ordinance or resolution, submit to the voters of the
county the question of reducing or discontinuing the tax. In
the ordinance or resolution, the county board shall certify the
question to the proper election authority in accordance with
the Election Code. The election authority must submit the
question in substantially the following form:
Shall the school facility retailers' occupation tax
and service occupation tax (commonly referred to as the
"school facility sales tax") currently imposed in (name of
county) at a rate of (insert rate) be (reduced to (insert
rate))(discontinued)?
If a majority of the electors voting on the question vote in
the affirmative, then, subject to the provisions of subsection
(g) of this Section, the tax shall be reduced or discontinued
as set forth in the question.
(i) This Section does not apply to Cook County.
(j) This Section may be cited as the County School Facility
Occupation Tax Law.
(Source: P.A. 98-584, eff. 8-27-13; 99-143, eff. 7-27-15;
99-217, eff. 7-31-15; 99-642, eff. 7-28-16.)
(55 ILCS 5/5-1007) (from Ch. 34, par. 5-1007)
Sec. 5-1007. Home Rule County Service Occupation Tax Law.
The corporate authorities of a home rule county may impose a
tax upon all persons engaged, in such county, in the business
of making sales of service at the same rate of tax imposed

SB3445 - 449 - LRB100 20331 HLH 35618 b
pursuant to Section 5-1006 of the selling price of all tangible
personal property transferred by such servicemen either in the
form of tangible personal property or in the form of real
estate as an incident to a sale of service. If imposed, such
tax shall only be imposed in 1/4% increments. On and after
September 1, 1991, this additional tax may not be imposed on
tangible personal property taxed at the 1% rate under the
Service Occupation Tax Act the sales of food for human
consumption which is to be consumed off the premises where it
is sold (other than alcoholic beverages, soft drinks and food
which has been prepared for immediate consumption) and
prescription and nonprescription medicines, drugs, medical
appliances and insulin, urine testing materials, syringes and
needles used by diabetics. The tax imposed by a home rule
county pursuant to this Section and all civil penalties that
may be assessed as an incident thereof shall be collected and
enforced by the State Department of Revenue. The certificate of
registration which is issued by the Department to a retailer
under the Retailers' Occupation Tax Act or under the Service
Occupation Tax Act shall permit such registrant to engage in a
business which is taxable under any ordinance or resolution
enacted pursuant to this Section without registering
separately with the Department under such ordinance or
resolution or under this Section. The Department shall have
full power to administer and enforce this Section; to collect
all taxes and penalties due hereunder; to dispose of taxes and

SB3445 - 450 - LRB100 20331 HLH 35618 b
penalties so collected in the manner hereinafter provided; and
to determine all rights to credit memoranda arising on account
of the erroneous payment of tax or penalty hereunder. In the
administration of, and compliance with, this Section the
Department and persons who are subject to this Section shall
have the same rights, remedies, privileges, immunities, powers
and duties, and be subject to the same conditions,
restrictions, limitations, penalties and definitions of terms,
and employ the same modes of procedure, as are prescribed in
Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to all
provisions therein other than the State rate of tax), 4 (except
that the reference to the State shall be to the taxing county),
5, 7, 8 (except that the jurisdiction to which the tax shall be
a debt to the extent indicated in that Section 8 shall be the
taxing county), 9 (except as to the disposition of taxes and
penalties collected, and except that the returned merchandise
credit for this county tax may not be taken against any State
tax), 10, 11, 12 (except the reference therein to Section 2b of
the Retailers' Occupation Tax Act), 13 (except that any
reference to the State shall mean the taxing county), the first
paragraph of Section 15, 16, 17, 18, 19 and 20 of the Service
Occupation Tax Act and Section 3-7 of the Uniform Penalty and
Interest Act, as fully as if those provisions were set forth
herein.
No tax may be imposed by a home rule county pursuant to
this Section unless such county also imposes a tax at the same

SB3445 - 451 - LRB100 20331 HLH 35618 b
rate pursuant to Section 5-1006.
Persons subject to any tax imposed pursuant to the
authority granted in this Section may reimburse themselves for
their serviceman's tax liability hereunder by separately
stating such tax as an additional charge, which charge may be
stated in combination, in a single amount, with State tax which
servicemen are authorized to collect under the Service Use Tax
Act, pursuant to such bracket schedules as the Department may
prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing credit
memorandum, the Department shall notify the State Comptroller,
who shall cause the order to be drawn for the amount specified,
and to the person named, in such notification from the
Department. Such refund shall be paid by the State Treasurer
out of the home rule county retailers' occupation tax fund.
The Department shall forthwith pay over to the State
Treasurer, ex-officio, as trustee, all taxes and penalties
collected hereunder.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected under this Section
during the second preceding calendar month for sales within a

SB3445 - 452 - LRB100 20331 HLH 35618 b
STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named counties, the
counties to be those from which suppliers and servicemen have
paid taxes or penalties hereunder to the Department during the
second preceding calendar month. The amount to be paid to each
county shall be the amount (not including credit memoranda)
collected hereunder during the second preceding calendar month
by the Department, and not including an amount equal to the
amount of refunds made during the second preceding calendar
month by the Department on behalf of such county, and not
including any amounts that are transferred to the STAR Bonds
Revenue Fund, less 2% of the remainder, which the Department
shall transfer into the Tax Compliance and Administration Fund.
The Department, at the time of each monthly disbursement to the
counties, shall prepare and certify to the State Comptroller
the amount to be transferred into the Tax Compliance and
Administration Fund under this Section. Within 10 days after
receipt, by the Comptroller, of the disbursement certification
to the counties and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in such certification.

SB3445 - 453 - LRB100 20331 HLH 35618 b
In addition to the disbursement required by the preceding
paragraph, an allocation shall be made in each year to each
county which received more than $500,000 in disbursements under
the preceding paragraph in the preceding calendar year. The
allocation shall be in an amount equal to the average monthly
distribution made to each such county under the preceding
paragraph during the preceding calendar year (excluding the 2
months of highest receipts). The distribution made in March of
each year subsequent to the year in which an allocation was
made pursuant to this paragraph and the preceding paragraph
shall be reduced by the amount allocated and disbursed under
this paragraph in the preceding calendar year. The Department
shall prepare and certify to the Comptroller for disbursement
the allocations made in accordance with this paragraph.
Nothing in this Section shall be construed to authorize a
county to impose a tax upon the privilege of engaging in any
business which under the Constitution of the United States may
not be made the subject of taxation by this State.
An ordinance or resolution imposing or discontinuing a tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of June, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of September next following such adoption and filing.
Beginning January 1, 1992, an ordinance or resolution imposing
or discontinuing the tax hereunder or effecting a change in the

SB3445 - 454 - LRB100 20331 HLH 35618 b
rate thereof shall be adopted and a certified copy thereof
filed with the Department on or before the first day of July,
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of October next
following such adoption and filing. Beginning January 1, 1993,
an ordinance or resolution imposing or discontinuing the tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of October, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of January next following such adoption and filing.
Beginning April 1, 1998, an ordinance or resolution imposing or
discontinuing the tax hereunder or effecting a change in the
rate thereof shall either (i) be adopted and a certified copy
thereof filed with the Department on or before the first day of
April, whereupon the Department shall proceed to administer and
enforce this Section as of the first day of July next following
the adoption and filing; or (ii) be adopted and a certified
copy thereof filed with the Department on or before the first
day of October, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of
January next following the adoption and filing.
This Section shall be known and may be cited as the Home
Rule County Service Occupation Tax Law.
(Source: P.A. 100-23, eff. 7-6-17.)

SB3445 - 455 - LRB100 20331 HLH 35618 b
(55 ILCS 5/5-1008.5)
Sec. 5-1008.5. Use and occupation taxes.
(a) The Rock Island County Board may adopt a resolution
that authorizes a referendum on the question of whether the
county shall be authorized to impose a retailers' occupation
tax, a service occupation tax, and a use tax at a rate of 1/4 of
1% on behalf of the economic development activities of Rock
Island County and communities located within the county. The
county board shall certify the question to the proper election
authorities who shall submit the question to the voters of the
county at the next regularly scheduled election in accordance
with the general election law. The question shall be in
substantially the following form:
Shall Rock Island County be authorized to impose a
retailers' occupation tax, a service occupation tax, and a
use tax at the rate of 1/4 of 1% for the sole purpose of
economic development activities, including creation and
retention of job opportunities, support of affordable
housing opportunities, and enhancement of quality of life
improvements?
Votes shall be recorded as "yes" or "no". If a majority of
all votes cast on the proposition are in favor of the
proposition, the county is authorized to impose the tax.
(b) The county shall impose the retailers' occupation tax
upon all persons engaged in the business of selling tangible
personal property at retail in the county, at the rate approved

SB3445 - 456 - LRB100 20331 HLH 35618 b
by referendum, on the gross receipts from the sales made in the
course of those businesses within the county. This additional
tax may not be imposed on the sale of tangible personal
property taxed at the 1% rate under the Retailers' Occupation
Tax Act food for human consumption that is to be consumed off
the premises where it is sold (other than alcoholic beverages,
soft drinks, and food that has been prepared for immediate
consumption) and prescription and non-prescription medicines,
drugs, medical appliances and insulin, urine testing
materials, syringes, and needles used by diabetics. The tax
imposed under this Section and all civil penalties that may be
assessed as an incident of the tax shall be collected and
enforced by the Department of Revenue. The Department has full
power to administer and enforce this Section; to collect all
taxes and penalties so collected in the manner provided in this
Section; and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty
under this Section. In the administration of, and compliance
with, this Section, the Department and persons who are subject
to this Section shall (i) have the same rights, remedies,
privileges, immunities, powers and duties, (ii) be subject to
the same conditions, restrictions, limitations, penalties,
exclusions, exemptions, and definitions of terms, and (iii)
employ the same modes of procedure as are prescribed in
Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2,
2-5, 2-5.5, 2-10 (in respect to all provisions other than the

SB3445 - 457 - LRB100 20331 HLH 35618 b
State rate of tax), 2-15 through 2-70, 2a, 2b, 2c, 3 (except as
to the disposition of taxes and penalties collected and
provisions related to quarter monthly payments), 4, 5, 5a, 5b,
5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10,
11, 11a, 12, and 13 of the Retailers' Occupation Tax Act and
Section 3-7 of the Uniform Penalty and Interest Act, as fully
as if those provisions were set forth in this subsection.
Persons subject to any tax imposed under this subsection
may reimburse themselves for their seller's tax liability by
separately stating the tax as an additional charge, which
charge may be stated in combination, in a single amount, with
State taxes that sellers are required to collect, in accordance
with bracket schedules prescribed by the Department.
Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the tax fund referenced under paragraph (g) of
this Section.
If a tax is imposed under this subsection (b), a tax shall
also be imposed at the same rate under subsections (c) and (d)
of this Section.
For the purpose of determining whether a tax authorized
under this Section is applicable, a retail sale, by a producer

SB3445 - 458 - LRB100 20331 HLH 35618 b
of coal or another mineral mined in Illinois, is a sale at
retail at the place where the coal or other mineral mined in
Illinois is extracted from the earth. This paragraph does not
apply to coal or another mineral when it is delivered or
shipped by the seller to the purchaser at a point outside
Illinois so that the sale is exempt under the federal
Constitution as a sale in interstate or foreign commerce.
Nothing in this Section shall be construed to authorize the
county to impose a tax upon the privilege of engaging in any
business that under the Constitution of the United States may
not be made the subject of taxation by this State.
(c) If a tax has been imposed under subsection (b), a
service occupation tax shall also be imposed at the same rate
upon all persons engaged, in the county, in the business of
making sales of service, who, as an incident to making those
sales of service, transfer tangible personal property within
the county as an incident to a sale of service. This additional
tax may not be imposed on the sale of tangible personal
property taxed at the 1% rate under the Service Occupation Tax
Act food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages, soft
drinks, and food that has been prepared for immediate
consumption) and prescription and non-prescription medicines,
drugs, medical appliances and insulin, urine testing
materials, syringes, and needles used by diabetics. The tax
imposed under this subsection and all civil penalties that may

SB3445 - 459 - LRB100 20331 HLH 35618 b
be assessed as an incident of the tax shall be collected and
enforced by the Department of Revenue. The Department has full
power to administer and enforce this paragraph; to collect all
taxes and penalties due under this Section; to dispose of taxes
and penalties so collected in the manner provided in this
Section; and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty
under this Section. In the administration of, and compliance
with this paragraph, the Department and persons who are subject
to this paragraph shall (i) have the same rights, remedies,
privileges, immunities, powers, and duties, (ii) be subject to
the same conditions, restrictions, limitations, penalties,
exclusions, exemptions, and definitions of terms, and (iii)
employ the same modes of procedure as are prescribed in
Sections 2 (except that the reference to State in the
definition of supplier maintaining a place of business in this
State shall mean the county), 2a, 2b, 3 through 3-55 (in
respect to all provisions other than the State rate of tax), 4
(except that the reference to the State shall be to the
county), 5, 7, 8 (except that the jurisdiction to which the tax
shall be a debt to the extent indicated in that Section 8 shall
be the county), 9 (except as to the disposition of taxes and
penalties collected, and except that the returned merchandise
credit for this tax may not be taken against any State tax),
11, 12 (except the reference to Section 2b of the Retailers'
Occupation Tax Act), 13 (except that any reference to the State

SB3445 - 460 - LRB100 20331 HLH 35618 b
shall mean the county), 15, 16, 17, 18, 19 and 20 of the
Service Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act, as fully as if those provisions were
set forth in this subsection.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability by separately stating the tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State tax that servicemen are
authorized to collect under the Service Use Tax Act, in
accordance with bracket schedules prescribed by the
Department.
Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the tax fund referenced under paragraph (g) of
this Section.
Nothing in this paragraph shall be construed to authorize
the county to impose a tax upon the privilege of engaging in
any business that under the Constitution of the United States
may not be made the subject of taxation by the State.
(d) If a tax has been imposed under subsection (b), a use
tax shall also be imposed at the same rate upon the privilege

SB3445 - 461 - LRB100 20331 HLH 35618 b
of using, in the county, any item of tangible personal property
that is purchased outside the county at retail from a retailer,
and that is titled or registered at a location within the
county with an agency of this State's government. This
additional tax may not be imposed on the sale of food for human
consumption that is to be consumed off the premises where it is
sold (other than alcoholic beverages, soft drinks, and food
that has been prepared for immediate consumption) and
prescription and non-prescription medicines, drugs, medical
appliances and insulin, urine testing materials, syringes, and
needles used by diabetics. "Selling price" is defined as in the
Use Tax Act. The tax shall be collected from persons whose
Illinois address for titling or registration purposes is given
as being in the county. The tax shall be collected by the
Department of Revenue for the county. The tax must be paid to
the State, or an exemption determination must be obtained from
the Department of Revenue, before the title or certificate of
registration for the property may be issued. The tax or proof
of exemption may be transmitted to the Department by way of the
State agency with which, or the State officer with whom, the
tangible personal property must be titled or registered if the
Department and the State agency or State officer determine that
this procedure will expedite the processing of applications for
title or registration.
The Department has full power to administer and enforce
this paragraph; to collect all taxes, penalties, and interest

SB3445 - 462 - LRB100 20331 HLH 35618 b
due under this Section; to dispose of taxes, penalties, and
interest so collected in the manner provided in this Section;
and to determine all rights to credit memoranda or refunds
arising on account of the erroneous payment of tax, penalty, or
interest under this Section. In the administration of, and
compliance with, this subsection, the Department and persons
who are subject to this paragraph shall (i) have the same
rights, remedies, privileges, immunities, powers, and duties,
(ii) be subject to the same conditions, restrictions,
limitations, penalties, exclusions, exemptions, and
definitions of terms, and (iii) employ the same modes of
procedure as are prescribed in Sections 2 (except the
definition of "retailer maintaining a place of business in this
State"), 3, 3-5, 3-10, 3-45, 3-55, 3-65, 3-70, 3-85, 3a, 4, 6,
7, 8 (except that the jurisdiction to which the tax shall be a
debt to the extent indicated in that Section 8 shall be the
county), 9 (except provisions relating to quarter monthly
payments), 10, 11, 12, 12a, 12b, 13, 14, 15, 19, 20, 21, and 22
of the Use Tax Act and Section 3-7 of the Uniform Penalty and
Interest Act, that are not inconsistent with this paragraph, as
fully as if those provisions were set forth in this subsection.
Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in the notification

SB3445 - 463 - LRB100 20331 HLH 35618 b
from the Department. The refund shall be paid by the State
Treasurer out of the tax fund referenced under paragraph (g) of
this Section.
(e) A certificate of registration issued by the State
Department of Revenue to a retailer under the Retailers'
Occupation Tax Act or under the Service Occupation Tax Act
shall permit the registrant to engage in a business that is
taxed under the tax imposed under paragraphs (b), (c), or (d)
of this Section and no additional registration shall be
required. A certificate issued under the Use Tax Act or the
Service Use Tax Act shall be applicable with regard to any tax
imposed under paragraph (c) of this Section.
(f) The results of any election authorizing a proposition
to impose a tax under this Section or effecting a change in the
rate of tax shall be certified by the proper election
authorities and filed with the Illinois Department on or before
the first day of October. In addition, an ordinance imposing,
discontinuing, or effecting a change in the rate of tax under
this Section shall be adopted and a certified copy of the
ordinance filed with the Department on or before the first day
of October. After proper receipt of the certifications, the
Department shall proceed to administer and enforce this Section
as of the first day of January next following the adoption and
filing.
(g) The Department of Revenue shall, upon collecting any
taxes and penalties as provided in this Section, pay the taxes

SB3445 - 464 - LRB100 20331 HLH 35618 b
and penalties over to the State Treasurer as trustee for the
county. The taxes and penalties shall be held in a trust fund
outside the State Treasury. On or before the 25th day of each
calendar month, the Department of Revenue shall prepare and
certify to the Comptroller of the State of Illinois the amount
to be paid to the county, which shall be the balance in the
fund, less any amount determined by the Department to be
necessary for the payment of refunds. Within 10 days after
receipt by the Comptroller of the certification of the amount
to be paid to the county, the Comptroller shall cause an order
to be drawn for payment for the amount in accordance with the
directions contained in the certification. Amounts received
from the tax imposed under this Section shall be used only for
the economic development activities of the county and
communities located within the county.
(h) When certifying the amount of a monthly disbursement to
the county under this Section, the Department shall increase or
decrease the amounts by an amount necessary to offset any
miscalculation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous 6
months from the time a miscalculation is discovered.
(i) This Section may be cited as the Rock Island County Use
and Occupation Tax Law.
(Source: P.A. 90-415, eff. 8-15-97.)
Section 110. The Illinois Municipal Code is amended by

SB3445 - 465 - LRB100 20331 HLH 35618 b
changing Sections 8-11-1, 8-11-1.3, 8-11-1.4, 8-11-1.6,
8-11-1.7, 8-11-5, and 11-74.3-6 as follows:
(65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1)
Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax
Act. The corporate authorities of a home rule municipality may
impose a tax upon all persons engaged in the business of
selling tangible personal property, other than an item of
tangible personal property titled or registered with an agency
of this State's government, at retail in the municipality on
the gross receipts from these sales made in the course of such
business. If imposed, the tax shall only be imposed in 1/4%
increments. On and after September 1, 1991, this additional tax
may not be imposed on the sales of tangible personal property
taxed at the 1% rate under the Retailers' Occupation Tax Act
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages, soft
drinks and food that has been prepared for immediate
consumption) and prescription and nonprescription medicines,
drugs, medical appliances and insulin, urine testing
materials, syringes and needles used by diabetics. The tax
imposed by a home rule municipality under this Section and all
civil penalties that may be assessed as an incident of the tax
shall be collected and enforced by the State Department of
Revenue. The certificate of registration that is issued by the
Department to a retailer under the Retailers' Occupation Tax

SB3445 - 466 - LRB100 20331 HLH 35618 b
Act shall permit the retailer to engage in a business that is
taxable under any ordinance or resolution enacted pursuant to
this Section without registering separately with the
Department under such ordinance or resolution or under this
Section. The Department shall have full power to administer and
enforce this Section; to collect all taxes and penalties due
hereunder; to dispose of taxes and penalties so collected in
the manner hereinafter provided; and to determine all rights to
credit memoranda arising on account of the erroneous payment of
tax or penalty hereunder. In the administration of, and
compliance with, this Section the Department and persons who
are subject to this Section shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties and definitions of terms, and employ the same modes
of procedure, as are prescribed in Sections 1, 1a, 1d, 1e, 1f,
1i, 1j, 1k, 1m, 1n, 2 through 2-65 (in respect to all
provisions therein other than the State rate of tax), 2c, 3
(except as to the disposition of taxes and penalties
collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the
Retailers' Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act, as fully as if those provisions were
set forth herein.
No tax may be imposed by a home rule municipality under
this Section unless the municipality also imposes a tax at the

SB3445 - 467 - LRB100 20331 HLH 35618 b
same rate under Section 8-11-5 of this Act.
Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
seller's tax liability hereunder by separately stating that tax
as an additional charge, which charge may be stated in
combination, in a single amount, with State tax which sellers
are required to collect under the Use Tax Act, pursuant to such
bracket schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the home rule municipal retailers' occupation
tax fund.
The Department shall immediately pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties
collected hereunder.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected under this Section
during the second preceding calendar month for sales within a

SB3445 - 468 - LRB100 20331 HLH 35618 b
STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities,
the municipalities to be those from which retailers have paid
taxes or penalties hereunder to the Department during the
second preceding calendar month. The amount to be paid to each
municipality shall be the amount (not including credit
memoranda) collected hereunder during the second preceding
calendar month by the Department plus an amount the Department
determines is necessary to offset any amounts that were
erroneously paid to a different taxing body, and not including
an amount equal to the amount of refunds made during the second
preceding calendar month by the Department on behalf of such
municipality, and not including any amount that the Department
determines is necessary to offset any amounts that were payable
to a different taxing body but were erroneously paid to the
municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund, less 2% of the
remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the time
of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt by the

SB3445 - 469 - LRB100 20331 HLH 35618 b
Comptroller of the disbursement certification to the
municipalities and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in the certification.
In addition to the disbursement required by the preceding
paragraph and in order to mitigate delays caused by
distribution procedures, an allocation shall, if requested, be
made within 10 days after January 14, 1991, and in November of
1991 and each year thereafter, to each municipality that
received more than $500,000 during the preceding fiscal year,
(July 1 through June 30) whether collected by the municipality
or disbursed by the Department as required by this Section.
Within 10 days after January 14, 1991, participating
municipalities shall notify the Department in writing of their
intent to participate. In addition, for the initial
distribution, participating municipalities shall certify to
the Department the amounts collected by the municipality for
each month under its home rule occupation and service
occupation tax during the period July 1, 1989 through June 30,
1990. The allocation within 10 days after January 14, 1991,
shall be in an amount equal to the monthly average of these
amounts, excluding the 2 months of highest receipts. The
monthly average for the period of July 1, 1990 through June 30,
1991 will be determined as follows: the amounts collected by

SB3445 - 470 - LRB100 20331 HLH 35618 b
the municipality under its home rule occupation and service
occupation tax during the period of July 1, 1990 through
September 30, 1990, plus amounts collected by the Department
and paid to such municipality through June 30, 1991, excluding
the 2 months of highest receipts. The monthly average for each
subsequent period of July 1 through June 30 shall be an amount
equal to the monthly distribution made to each such
municipality under the preceding paragraph during this period,
excluding the 2 months of highest receipts. The distribution
made in November 1991 and each year thereafter under this
paragraph and the preceding paragraph shall be reduced by the
amount allocated and disbursed under this paragraph in the
preceding period of July 1 through June 30. The Department
shall prepare and certify to the Comptroller for disbursement
the allocations made in accordance with this paragraph.
For the purpose of determining the local governmental unit
whose tax is applicable, a retail sale by a producer of coal or
other mineral mined in Illinois is a sale at retail at the
place where the coal or other mineral mined in Illinois is
extracted from the earth. This paragraph does not apply to coal
or other mineral when it is delivered or shipped by the seller
to the purchaser at a point outside Illinois so that the sale
is exempt under the United States Constitution as a sale in
interstate or foreign commerce.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in

SB3445 - 471 - LRB100 20331 HLH 35618 b
any business which under the Constitution of the United States
may not be made the subject of taxation by this State.
An ordinance or resolution imposing or discontinuing a tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of June, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of September next following the adoption and filing.
Beginning January 1, 1992, an ordinance or resolution imposing
or discontinuing the tax hereunder or effecting a change in the
rate thereof shall be adopted and a certified copy thereof
filed with the Department on or before the first day of July,
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of October next
following such adoption and filing. Beginning January 1, 1993,
an ordinance or resolution imposing or discontinuing the tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of October, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of January next following the adoption and filing.
However, a municipality located in a county with a population
in excess of 3,000,000 that elected to become a home rule unit
at the general primary election in 1994 may adopt an ordinance
or resolution imposing the tax under this Section and file a
certified copy of the ordinance or resolution with the

SB3445 - 472 - LRB100 20331 HLH 35618 b
Department on or before July 1, 1994. The Department shall then
proceed to administer and enforce this Section as of October 1,
1994. Beginning April 1, 1998, an ordinance or resolution
imposing or discontinuing the tax hereunder or effecting a
change in the rate thereof shall either (i) be adopted and a
certified copy thereof filed with the Department on or before
the first day of April, whereupon the Department shall proceed
to administer and enforce this Section as of the first day of
July next following the adoption and filing; or (ii) be adopted
and a certified copy thereof filed with the Department on or
before the first day of October, whereupon the Department shall
proceed to administer and enforce this Section as of the first
day of January next following the adoption and filing.
When certifying the amount of a monthly disbursement to a
municipality under this Section, the Department shall increase
or decrease the amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous 6
months from the time a misallocation is discovered.
Any unobligated balance remaining in the Municipal
Retailers' Occupation Tax Fund on December 31, 1989, which fund
was abolished by Public Act 85-1135, and all receipts of
municipal tax as a result of audits of liability periods prior
to January 1, 1990, shall be paid into the Local Government Tax
Fund for distribution as provided by this Section prior to the
enactment of Public Act 85-1135. All receipts of municipal tax

SB3445 - 473 - LRB100 20331 HLH 35618 b
as a result of an assessment not arising from an audit, for
liability periods prior to January 1, 1990, shall be paid into
the Local Government Tax Fund for distribution before July 1,
1990, as provided by this Section prior to the enactment of
Public Act 85-1135; and on and after July 1, 1990, all such
receipts shall be distributed as provided in Section 6z-18 of
the State Finance Act.
As used in this Section, "municipal" and "municipality"
means a city, village or incorporated town, including an
incorporated town that has superseded a civil township.
This Section shall be known and may be cited as the Home
Rule Municipal Retailers' Occupation Tax Act.
(Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17.)
(65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3)
Sec. 8-11-1.3. Non-Home Rule Municipal Retailers'
Occupation Tax Act. The corporate authorities of a non-home
rule municipality may impose a tax upon all persons engaged in
the business of selling tangible personal property, other than
on an item of tangible personal property which is titled and
registered by an agency of this State's Government, at retail
in the municipality for expenditure on public infrastructure or
for property tax relief or both as defined in Section 8-11-1.2
if approved by referendum as provided in Section 8-11-1.1, of
the gross receipts from such sales made in the course of such
business. If the tax is approved by referendum on or after July

SB3445 - 474 - LRB100 20331 HLH 35618 b
14, 2010 (the effective date of Public Act 96-1057), the
corporate authorities of a non-home rule municipality may,
until December 31, 2020, use the proceeds of the tax for
expenditure on municipal operations, in addition to or in lieu
of any expenditure on public infrastructure or for property tax
relief. The tax imposed may not be more than 1% and may be
imposed only in 1/4% increments. The tax may not be imposed on
the sale of tangible personal property taxed at the 1% rate
under the Retailers' Occupation Tax Act food for human
consumption that is to be consumed off the premises where it is
sold (other than alcoholic beverages, soft drinks, and food
that has been prepared for immediate consumption) and
prescription and nonprescription medicines, drugs, medical
appliances, and insulin, urine testing materials, syringes,
and needles used by diabetics. The tax imposed by a
municipality pursuant to this Section and all civil penalties
that may be assessed as an incident thereof shall be collected
and enforced by the State Department of Revenue. The
certificate of registration which is issued by the Department
to a retailer under the Retailers' Occupation Tax Act shall
permit such retailer to engage in a business which is taxable
under any ordinance or resolution enacted pursuant to this
Section without registering separately with the Department
under such ordinance or resolution or under this Section. The
Department shall have full power to administer and enforce this
Section; to collect all taxes and penalties due hereunder; to

SB3445 - 475 - LRB100 20331 HLH 35618 b
dispose of taxes and penalties so collected in the manner
hereinafter provided, and to determine all rights to credit
memoranda, arising on account of the erroneous payment of tax
or penalty hereunder. In the administration of, and compliance
with, this Section, the Department and persons who are subject
to this Section shall have the same rights, remedies,
privileges, immunities, powers and duties, and be subject to
the same conditions, restrictions, limitations, penalties and
definitions of terms, and employ the same modes of procedure,
as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j,
2 through 2-65 (in respect to all provisions therein other than
the State rate of tax), 2c, 3 (except as to the disposition of
taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,
5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12
and 13 of the Retailers' Occupation Tax Act and Section 3-7 of
the Uniform Penalty and Interest Act as fully as if those
provisions were set forth herein.
No municipality may impose a tax under this Section unless
the municipality also imposes a tax at the same rate under
Section 8-11-1.4 of this Code.
Persons subject to any tax imposed pursuant to the
authority granted in this Section may reimburse themselves for
their seller's tax liability hereunder by separately stating
such tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax which sellers
are required to collect under the Use Tax Act, pursuant to such

SB3445 - 476 - LRB100 20331 HLH 35618 b
bracket schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in such notification
from the Department. Such refund shall be paid by the State
Treasurer out of the non-home rule municipal retailers'
occupation tax fund.
The Department shall forthwith pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties
collected hereunder.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected under this Section
during the second preceding calendar month for sales within a
STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities,
the municipalities to be those from which retailers have paid
taxes or penalties hereunder to the Department during the

SB3445 - 477 - LRB100 20331 HLH 35618 b
second preceding calendar month. The amount to be paid to each
municipality shall be the amount (not including credit
memoranda) collected hereunder during the second preceding
calendar month by the Department plus an amount the Department
determines is necessary to offset any amounts which were
erroneously paid to a different taxing body, and not including
an amount equal to the amount of refunds made during the second
preceding calendar month by the Department on behalf of such
municipality, and not including any amount which the Department
determines is necessary to offset any amounts which were
payable to a different taxing body but were erroneously paid to
the municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund, less 2% of the
remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the time
of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt, by the
Comptroller, of the disbursement certification to the
municipalities and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in such certification.
For the purpose of determining the local governmental unit

SB3445 - 478 - LRB100 20331 HLH 35618 b
whose tax is applicable, a retail sale, by a producer of coal
or other mineral mined in Illinois, is a sale at retail at the
place where the coal or other mineral mined in Illinois is
extracted from the earth. This paragraph does not apply to coal
or other mineral when it is delivered or shipped by the seller
to the purchaser at a point outside Illinois so that the sale
is exempt under the Federal Constitution as a sale in
interstate or foreign commerce.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the constitution of the United States
may not be made the subject of taxation by this State.
When certifying the amount of a monthly disbursement to a
municipality under this Section, the Department shall increase
or decrease such amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous 6
months from the time a misallocation is discovered.
The Department of Revenue shall implement this amendatory
Act of the 91st General Assembly so as to collect the tax on
and after January 1, 2002.
As used in this Section, "municipal" and "municipality"
means a city, village or incorporated town, including an
incorporated town which has superseded a civil township.
This Section shall be known and may be cited as the
"Non-Home Rule Municipal Retailers' Occupation Tax Act".

SB3445 - 479 - LRB100 20331 HLH 35618 b
(Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17.)
(65 ILCS 5/8-11-1.4) (from Ch. 24, par. 8-11-1.4)
Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation
Tax Act. The corporate authorities of a non-home rule
municipality may impose a tax upon all persons engaged, in such
municipality, in the business of making sales of service for
expenditure on public infrastructure or for property tax relief
or both as defined in Section 8-11-1.2 if approved by
referendum as provided in Section 8-11-1.1, of the selling
price of all tangible personal property transferred by such
servicemen either in the form of tangible personal property or
in the form of real estate as an incident to a sale of service.
If the tax is approved by referendum on or after July 14, 2010
(the effective date of Public Act 96-1057), the corporate
authorities of a non-home rule municipality may, until December
31, 2020, use the proceeds of the tax for expenditure on
municipal operations, in addition to or in lieu of any
expenditure on public infrastructure or for property tax
relief. The tax imposed may not be more than 1% and may be
imposed only in 1/4% increments. The tax may not be imposed on
the sale of tangible personal property taxed at the 1% rate
under the Service Occupation Tax Act food for human consumption
that is to be consumed off the premises where it is sold (other
than alcoholic beverages, soft drinks, and food that has been
prepared for immediate consumption) and prescription and

SB3445 - 480 - LRB100 20331 HLH 35618 b
nonprescription medicines, drugs, medical appliances, and
insulin, urine testing materials, syringes, and needles used by
diabetics. The tax imposed by a municipality pursuant to this
Section and all civil penalties that may be assessed as an
incident thereof shall be collected and enforced by the State
Department of Revenue. The certificate of registration which is
issued by the Department to a retailer under the Retailers'
Occupation Tax Act or under the Service Occupation Tax Act
shall permit such registrant to engage in a business which is
taxable under any ordinance or resolution enacted pursuant to
this Section without registering separately with the
Department under such ordinance or resolution or under this
Section. The Department shall have full power to administer and
enforce this Section; to collect all taxes and penalties due
hereunder; to dispose of taxes and penalties so collected in
the manner hereinafter provided, and to determine all rights to
credit memoranda arising on account of the erroneous payment of
tax or penalty hereunder. In the administration of, and
compliance with, this Section the Department and persons who
are subject to this Section shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties and definitions of terms, and employ the same modes
of procedure, as are prescribed in Sections 1a-1, 2, 2a, 3
through 3-50 (in respect to all provisions therein other than
the State rate of tax), 4 (except that the reference to the

SB3445 - 481 - LRB100 20331 HLH 35618 b
State shall be to the taxing municipality), 5, 7, 8 (except
that the jurisdiction to which the tax shall be a debt to the
extent indicated in that Section 8 shall be the taxing
municipality), 9 (except as to the disposition of taxes and
penalties collected, and except that the returned merchandise
credit for this municipal tax may not be taken against any
State tax), 10, 11, 12 (except the reference therein to Section
2b of the Retailers' Occupation Tax Act), 13 (except that any
reference to the State shall mean the taxing municipality), the
first paragraph of Section 15, 16, 17, 18, 19 and 20 of the
Service Occupation Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act, as fully as if those provisions were
set forth herein.
No municipality may impose a tax under this Section unless
the municipality also imposes a tax at the same rate under
Section 8-11-1.3 of this Code.
Persons subject to any tax imposed pursuant to the
authority granted in this Section may reimburse themselves for
their serviceman's tax liability hereunder by separately
stating such tax as an additional charge, which charge may be
stated in combination, in a single amount, with State tax which
servicemen are authorized to collect under the Service Use Tax
Act, pursuant to such bracket schedules as the Department may
prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing credit

SB3445 - 482 - LRB100 20331 HLH 35618 b
memorandum, the Department shall notify the State Comptroller,
who shall cause the order to be drawn for the amount specified,
and to the person named, in such notification from the
Department. Such refund shall be paid by the State Treasurer
out of the municipal retailers' occupation tax fund.
The Department shall forthwith pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties
collected hereunder.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected under this Section
during the second preceding calendar month for sales within a
STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities,
the municipalities to be those from which suppliers and
servicemen have paid taxes or penalties hereunder to the
Department during the second preceding calendar month. The
amount to be paid to each municipality shall be the amount (not
including credit memoranda) collected hereunder during the
second preceding calendar month by the Department, and not

SB3445 - 483 - LRB100 20331 HLH 35618 b
including an amount equal to the amount of refunds made during
the second preceding calendar month by the Department on behalf
of such municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund, less 2% of the
remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the time
of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt, by the
Comptroller, of the disbursement certification to the
municipalities, the General Revenue Fund, and the Tax
Compliance and Administration Fund provided for in this Section
to be given to the Comptroller by the Department, the
Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with the directions contained
in such certification.
The Department of Revenue shall implement this amendatory
Act of the 91st General Assembly so as to collect the tax on
and after January 1, 2002.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the constitution of the United States
may not be made the subject of taxation by this State.
As used in this Section, "municipal" or "municipality"
means or refers to a city, village or incorporated town,

SB3445 - 484 - LRB100 20331 HLH 35618 b
including an incorporated town which has superseded a civil
township.
This Section shall be known and may be cited as the
"Non-Home Rule Municipal Service Occupation Tax Act".
(Source: P.A. 100-23, eff. 7-6-17.)
(65 ILCS 5/8-11-1.6)
Sec. 8-11-1.6. Non-home rule municipal retailers
occupation tax; municipalities between 20,000 and 25,000. The
corporate authorities of a non-home rule municipality with a
population of more than 20,000 but less than 25,000 that has,
prior to January 1, 1987, established a Redevelopment Project
Area that has been certified as a State Sales Tax Boundary and
has issued bonds or otherwise incurred indebtedness to pay for
costs in excess of $5,000,000, which is secured in part by a
tax increment allocation fund, in accordance with the
provisions of Division 11-74.4 of this Code may, by passage of
an ordinance, impose a tax upon all persons engaged in the
business of selling tangible personal property, other than on
an item of tangible personal property that is titled and
registered by an agency of this State's Government, at retail
in the municipality. This tax may not be imposed on the sales
of tangible personal property taxed at the 1% rate under the
Retailers' Occupation Tax Act food for human consumption that
is to be consumed off the premises where it is sold (other than
alcoholic beverages, soft drinks, and food that has been

SB3445 - 485 - LRB100 20331 HLH 35618 b
prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances and
insulin, urine testing materials, syringes, and needles used by
diabetics. If imposed, the tax shall only be imposed in .25%
increments of the gross receipts from such sales made in the
course of business. Any tax imposed by a municipality under
this Section and all civil penalties that may be assessed as an
incident thereof shall be collected and enforced by the State
Department of Revenue. An ordinance imposing a tax hereunder or
effecting a change in the rate thereof shall be adopted and a
certified copy thereof filed with the Department on or before
the first day of October, whereupon the Department shall
proceed to administer and enforce this Section as of the first
day of January next following such adoption and filing. The
certificate of registration that is issued by the Department to
a retailer under the Retailers' Occupation Tax Act shall permit
the retailer to engage in a business that is taxable under any
ordinance or resolution enacted under this Section without
registering separately with the Department under the ordinance
or resolution or under this Section. The Department shall have
full power to administer and enforce this Section, to collect
all taxes and penalties due hereunder, to dispose of taxes and
penalties so collected in the manner hereinafter provided, and
to determine all rights to credit memoranda, arising on account
of the erroneous payment of tax or penalty hereunder. In the
administration of, and compliance with this Section, the

SB3445 - 486 - LRB100 20331 HLH 35618 b
Department and persons who are subject to this Section shall
have the same rights, remedies, privileges, immunities,
powers, and duties, and be subject to the same conditions,
restrictions, limitations, penalties, and definitions of
terms, and employ the same modes of procedure, as are
prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2
through 2-65 (in respect to all provisions therein other than
the State rate of tax), 2c, 3 (except as to the disposition of
taxes and penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,
5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12
and 13 of the Retailers' Occupation Tax Act and Section 3-7 of
the Uniform Penalty and Interest Act as fully as if those
provisions were set forth herein.
A tax may not be imposed by a municipality under this
Section unless the municipality also imposes a tax at the same
rate under Section 8-11-1.7 of this Act.
Persons subject to any tax imposed under the authority
granted in this Section, may reimburse themselves for their
seller's tax liability hereunder by separately stating the tax
as an additional charge, which charge may be stated in
combination, in a single amount, with State tax which sellers
are required to collect under the Use Tax Act, pursuant to such
bracket schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant, instead of issuing a
credit memorandum, the Department shall notify the State

SB3445 - 487 - LRB100 20331 HLH 35618 b
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Non-Home Rule Municipal Retailers'
Occupation Tax Fund, which is hereby created.
The Department shall forthwith pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties
collected hereunder.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected under this Section
during the second preceding calendar month for sales within a
STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities,
the municipalities to be those from which retailers have paid
taxes or penalties hereunder to the Department during the
second preceding calendar month. The amount to be paid to each
municipality shall be the amount (not including credit
memoranda) collected hereunder during the second preceding
calendar month by the Department plus an amount the Department

SB3445 - 488 - LRB100 20331 HLH 35618 b
determines is necessary to offset any amounts that were
erroneously paid to a different taxing body, and not including
an amount equal to the amount of refunds made during the second
preceding calendar month by the Department on behalf of the
municipality, and not including any amount that the Department
determines is necessary to offset any amounts that were payable
to a different taxing body but were erroneously paid to the
municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund, less 2% of the
remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the time
of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt by the
Comptroller of the disbursement certification to the
municipalities and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in the certification.
For the purpose of determining the local governmental unit
whose tax is applicable, a retail sale by a producer of coal or
other mineral mined in Illinois is a sale at retail at the
place where the coal or other mineral mined in Illinois is
extracted from the earth. This paragraph does not apply to coal

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or other mineral when it is delivered or shipped by the seller
to the purchaser at a point outside Illinois so that the sale
is exempt under the federal Constitution as a sale in
interstate or foreign commerce.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the constitution of the United States
may not be made the subject of taxation by this State.
When certifying the amount of a monthly disbursement to a
municipality under this Section, the Department shall increase
or decrease the amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous 6
months from the time a misallocation is discovered.
As used in this Section, "municipal" and "municipality"
means a city, village, or incorporated town, including an
incorporated town that has superseded a civil township.
(Source: P.A. 99-217, eff. 7-31-15; 99-642, eff. 7-28-16;
100-23, eff. 7-6-17; revised 10-3-17.)
(65 ILCS 5/8-11-1.7)
Sec. 8-11-1.7. Non-home rule municipal service occupation
tax; municipalities between 20,000 and 25,000. The corporate
authorities of a non-home rule municipality with a population
of more than 20,000 but less than 25,000 as determined by the
last preceding decennial census that has, prior to January 1,

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1987, established a Redevelopment Project Area that has been
certified as a State Sales Tax Boundary and has issued bonds or
otherwise incurred indebtedness to pay for costs in excess of
$5,000,000, which is secured in part by a tax increment
allocation fund, in accordance with the provisions of Division
11-74.4 of this Code may, by passage of an ordinance, impose a
tax upon all persons engaged in the municipality in the
business of making sales of service. If imposed, the tax shall
only be imposed in .25% increments of the selling price of all
tangible personal property transferred by such servicemen
either in the form of tangible personal property or in the form
of real estate as an incident to a sale of service. This tax
may not be imposed on the sales of tangible personal property
taxed at the 1% rate under the Service Occupation Tax Act food
for human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, soft drinks,
and food that has been prepared for immediate consumption) and
prescription and nonprescription medicines, drugs, medical
appliances and insulin, urine testing materials, syringes, and
needles used by diabetics. The tax imposed by a municipality
under this Section Sec. and all civil penalties that may be
assessed as an incident thereof shall be collected and enforced
by the State Department of Revenue. An ordinance imposing a tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of October, whereupon the Department

SB3445 - 491 - LRB100 20331 HLH 35618 b
shall proceed to administer and enforce this Section as of the
first day of January next following such adoption and filing.
The certificate of registration that is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act or under the Service Occupation Tax Act shall permit the
registrant to engage in a business that is taxable under any
ordinance or resolution enacted under this Section without
registering separately with the Department under the ordinance
or resolution or under this Section. The Department shall have
full power to administer and enforce this Section, to collect
all taxes and penalties due hereunder, to dispose of taxes and
penalties so collected in a manner hereinafter provided, and to
determine all rights to credit memoranda arising on account of
the erroneous payment of tax or penalty hereunder. In the
administration of and compliance with this Section, the
Department and persons who are subject to this Section shall
have the same rights, remedies, privileges, immunities,
powers, and duties, and be subject to the same conditions,
restrictions, limitations, penalties and definitions of terms,
and employ the same modes of procedure, as are prescribed in
Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to all
provisions therein other than the State rate of tax), 4 (except
that the reference to the State shall be to the taxing
municipality), 5, 7, 8 (except that the jurisdiction to which
the tax shall be a debt to the extent indicated in that Section
8 shall be the taxing municipality), 9 (except as to the

SB3445 - 492 - LRB100 20331 HLH 35618 b
disposition of taxes and penalties collected, and except that
the returned merchandise credit for this municipal tax may not
be taken against any State tax), 10, 11, 12, (except the
reference therein to Section 2b of the Retailers' Occupation
Tax Act), 13 (except that any reference to the State shall mean
the taxing municipality), the first paragraph of Sections 15,
16, 17, 18, 19, and 20 of the Service Occupation Tax Act and
Section 3-7 of the Uniform Penalty and Interest Act, as fully
as if those provisions were set forth herein.
A tax may not be imposed by a municipality under this
Section unless the municipality also imposes a tax at the same
rate under Section 8-11-1.6 of this Act.
Person subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
servicemen's tax liability hereunder by separately stating the
tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax that servicemen
are authorized to collect under the Service Use Tax Act, under
such bracket schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing credit
memorandum, the Department shall notify the State Comptroller,
who shall cause the order to be drawn for the amount specified,
and to the person named, in such notification from the
Department. The refund shall be paid by the State Treasurer out
of the Non-Home Rule Municipal Retailers' Occupation Tax Fund.

SB3445 - 493 - LRB100 20331 HLH 35618 b
The Department shall forthwith pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties
collected hereunder.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected under this Section
during the second preceding calendar month for sales within a
STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities,
the municipalities to be those from which suppliers and
servicemen have paid taxes or penalties hereunder to the
Department during the second preceding calendar month. The
amount to be paid to each municipality shall be the amount (not
including credit memoranda) collected hereunder during the
second preceding calendar month by the Department, and not
including an amount equal to the amount of refunds made during
the second preceding calendar month by the Department on behalf
of such municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund, less 2% of the
remainder, which the Department shall transfer into the Tax

SB3445 - 494 - LRB100 20331 HLH 35618 b
Compliance and Administration Fund. The Department, at the time
of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt by the
Comptroller of the disbursement certification to the
municipalities, the Tax Compliance and Administration Fund,
and the General Revenue Fund, provided for in this Section to
be given to the Comptroller by the Department, the Comptroller
shall cause the orders to be drawn for the respective amounts
in accordance with the directions contained in the
certification.
When certifying the amount of a monthly disbursement to a
municipality under this Section, the Department shall increase
or decrease the amount by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous 6
months from the time a misallocation is discovered.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the constitution of the United States
may not be made the subject of taxation by this State.
(Source: P.A. 100-23, eff. 7-6-17; revised 10-3-17.)
(65 ILCS 5/8-11-5) (from Ch. 24, par. 8-11-5)
Sec. 8-11-5. Home Rule Municipal Service Occupation Tax

SB3445 - 495 - LRB100 20331 HLH 35618 b
Act. The corporate authorities of a home rule municipality may
impose a tax upon all persons engaged, in such municipality, in
the business of making sales of service at the same rate of tax
imposed pursuant to Section 8-11-1, of the selling price of all
tangible personal property transferred by such servicemen
either in the form of tangible personal property or in the form
of real estate as an incident to a sale of service. If imposed,
such tax shall only be imposed in 1/4% increments. On and after
September 1, 1991, this additional tax may not be imposed on
the sales of tangible personal property taxed at the 1% rate
under the Service Occupation Tax Act food for human consumption
which is to be consumed off the premises where it is sold
(other than alcoholic beverages, soft drinks and food which has
been prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances and
insulin, urine testing materials, syringes and needles used by
diabetics. The tax imposed by a home rule municipality pursuant
to this Section and all civil penalties that may be assessed as
an incident thereof shall be collected and enforced by the
State Department of Revenue. The certificate of registration
which is issued by the Department to a retailer under the
Retailers' Occupation Tax Act or under the Service Occupation
Tax Act shall permit such registrant to engage in a business
which is taxable under any ordinance or resolution enacted
pursuant to this Section without registering separately with
the Department under such ordinance or resolution or under this

SB3445 - 496 - LRB100 20331 HLH 35618 b
Section. The Department shall have full power to administer and
enforce this Section; to collect all taxes and penalties due
hereunder; to dispose of taxes and penalties so collected in
the manner hereinafter provided, and to determine all rights to
credit memoranda arising on account of the erroneous payment of
tax or penalty hereunder. In the administration of, and
compliance with, this Section the Department and persons who
are subject to this Section shall have the same rights,
remedies, privileges, immunities, powers and duties, and be
subject to the same conditions, restrictions, limitations,
penalties and definitions of terms, and employ the same modes
of procedure, as are prescribed in Sections 1a-1, 2, 2a, 3
through 3-50 (in respect to all provisions therein other than
the State rate of tax), 4 (except that the reference to the
State shall be to the taxing municipality), 5, 7, 8 (except
that the jurisdiction to which the tax shall be a debt to the
extent indicated in that Section 8 shall be the taxing
municipality), 9 (except as to the disposition of taxes and
penalties collected, and except that the returned merchandise
credit for this municipal tax may not be taken against any
State tax), 10, 11, 12 (except the reference therein to Section
2b of the Retailers' Occupation Tax Act), 13 (except that any
reference to the State shall mean the taxing municipality), the
first paragraph of Section 15, 16, 17 (except that credit
memoranda issued hereunder may not be used to discharge any
State tax liability), 18, 19 and 20 of the Service Occupation

SB3445 - 497 - LRB100 20331 HLH 35618 b
Tax Act and Section 3-7 of the Uniform Penalty and Interest
Act, as fully as if those provisions were set forth herein.
No tax may be imposed by a home rule municipality pursuant
to this Section unless such municipality also imposes a tax at
the same rate pursuant to Section 8-11-1 of this Act.
Persons subject to any tax imposed pursuant to the
authority granted in this Section may reimburse themselves for
their serviceman's tax liability hereunder by separately
stating such tax as an additional charge, which charge may be
stated in combination, in a single amount, with State tax which
servicemen are authorized to collect under the Service Use Tax
Act, pursuant to such bracket schedules as the Department may
prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing credit
memorandum, the Department shall notify the State Comptroller,
who shall cause the order to be drawn for the amount specified,
and to the person named, in such notification from the
Department. Such refund shall be paid by the State Treasurer
out of the home rule municipal retailers' occupation tax fund.
The Department shall forthwith pay over to the State
Treasurer, ex-officio, as trustee, all taxes and penalties
collected hereunder.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the

SB3445 - 498 - LRB100 20331 HLH 35618 b
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected under this Section
during the second preceding calendar month for sales within a
STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities,
the municipalities to be those from which suppliers and
servicemen have paid taxes or penalties hereunder to the
Department during the second preceding calendar month. The
amount to be paid to each municipality shall be the amount (not
including credit memoranda) collected hereunder during the
second preceding calendar month by the Department, and not
including an amount equal to the amount of refunds made during
the second preceding calendar month by the Department on behalf
of such municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund, less 2% of the
remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the time
of each monthly disbursement to the municipalities, shall
prepare and certify to the State Comptroller the amount to be
transferred into the Tax Compliance and Administration Fund
under this Section. Within 10 days after receipt, by the
Comptroller, of the disbursement certification to the

SB3445 - 499 - LRB100 20331 HLH 35618 b
municipalities and the Tax Compliance and Administration Fund
provided for in this Section to be given to the Comptroller by
the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in such certification.
In addition to the disbursement required by the preceding
paragraph and in order to mitigate delays caused by
distribution procedures, an allocation shall, if requested, be
made within 10 days after January 14, 1991, and in November of
1991 and each year thereafter, to each municipality that
received more than $500,000 during the preceding fiscal year,
(July 1 through June 30) whether collected by the municipality
or disbursed by the Department as required by this Section.
Within 10 days after January 14, 1991, participating
municipalities shall notify the Department in writing of their
intent to participate. In addition, for the initial
distribution, participating municipalities shall certify to
the Department the amounts collected by the municipality for
each month under its home rule occupation and service
occupation tax during the period July 1, 1989 through June 30,
1990. The allocation within 10 days after January 14, 1991,
shall be in an amount equal to the monthly average of these
amounts, excluding the 2 months of highest receipts. Monthly
average for the period of July 1, 1990 through June 30, 1991
will be determined as follows: the amounts collected by the
municipality under its home rule occupation and service

SB3445 - 500 - LRB100 20331 HLH 35618 b
occupation tax during the period of July 1, 1990 through
September 30, 1990, plus amounts collected by the Department
and paid to such municipality through June 30, 1991, excluding
the 2 months of highest receipts. The monthly average for each
subsequent period of July 1 through June 30 shall be an amount
equal to the monthly distribution made to each such
municipality under the preceding paragraph during this period,
excluding the 2 months of highest receipts. The distribution
made in November 1991 and each year thereafter under this
paragraph and the preceding paragraph shall be reduced by the
amount allocated and disbursed under this paragraph in the
preceding period of July 1 through June 30. The Department
shall prepare and certify to the Comptroller for disbursement
the allocations made in accordance with this paragraph.
Nothing in this Section shall be construed to authorize a
municipality to impose a tax upon the privilege of engaging in
any business which under the constitution of the United States
may not be made the subject of taxation by this State.
An ordinance or resolution imposing or discontinuing a tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of June, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of September next following such adoption and filing.
Beginning January 1, 1992, an ordinance or resolution imposing
or discontinuing the tax hereunder or effecting a change in the

SB3445 - 501 - LRB100 20331 HLH 35618 b
rate thereof shall be adopted and a certified copy thereof
filed with the Department on or before the first day of July,
whereupon the Department shall proceed to administer and
enforce this Section as of the first day of October next
following such adoption and filing. Beginning January 1, 1993,
an ordinance or resolution imposing or discontinuing the tax
hereunder or effecting a change in the rate thereof shall be
adopted and a certified copy thereof filed with the Department
on or before the first day of October, whereupon the Department
shall proceed to administer and enforce this Section as of the
first day of January next following such adoption and filing.
However, a municipality located in a county with a population
in excess of 3,000,000 that elected to become a home rule unit
at the general primary election in 1994 may adopt an ordinance
or resolution imposing the tax under this Section and file a
certified copy of the ordinance or resolution with the
Department on or before July 1, 1994. The Department shall then
proceed to administer and enforce this Section as of October 1,
1994. Beginning April 1, 1998, an ordinance or resolution
imposing or discontinuing the tax hereunder or effecting a
change in the rate thereof shall either (i) be adopted and a
certified copy thereof filed with the Department on or before
the first day of April, whereupon the Department shall proceed
to administer and enforce this Section as of the first day of
July next following the adoption and filing; or (ii) be adopted
and a certified copy thereof filed with the Department on or

SB3445 - 502 - LRB100 20331 HLH 35618 b
before the first day of October, whereupon the Department shall
proceed to administer and enforce this Section as of the first
day of January next following the adoption and filing.
Any unobligated balance remaining in the Municipal
Retailers' Occupation Tax Fund on December 31, 1989, which fund
was abolished by Public Act 85-1135, and all receipts of
municipal tax as a result of audits of liability periods prior
to January 1, 1990, shall be paid into the Local Government Tax
Fund, for distribution as provided by this Section prior to the
enactment of Public Act 85-1135. All receipts of municipal tax
as a result of an assessment not arising from an audit, for
liability periods prior to January 1, 1990, shall be paid into
the Local Government Tax Fund for distribution before July 1,
1990, as provided by this Section prior to the enactment of
Public Act 85-1135, and on and after July 1, 1990, all such
receipts shall be distributed as provided in Section 6z-18 of
the State Finance Act.
As used in this Section, "municipal" and "municipality"
means a city, village or incorporated town, including an
incorporated town which has superseded a civil township.
This Section shall be known and may be cited as the Home
Rule Municipal Service Occupation Tax Act.
(Source: P.A. 100-23, eff. 7-6-17.)
(65 ILCS 5/11-74.3-6)
Sec. 11-74.3-6. Business district revenue and obligations;

SB3445 - 503 - LRB100 20331 HLH 35618 b
business district tax allocation fund.
(a) If the corporate authorities of a municipality have
approved a business district plan, have designated a business
district, and have elected to impose a tax by ordinance
pursuant to subsection (10) or (11) of Section 11-74.3-3, then
each year after the date of the approval of the ordinance but
terminating upon the date all business district project costs
and all obligations paying or reimbursing business district
project costs, if any, have been paid, but in no event later
than the dissolution date, all amounts generated by the
retailers' occupation tax and service occupation tax shall be
collected and the tax shall be enforced by the Department of
Revenue in the same manner as all retailers' occupation taxes
and service occupation taxes imposed in the municipality
imposing the tax and all amounts generated by the hotel
operators' occupation tax shall be collected and the tax shall
be enforced by the municipality in the same manner as all hotel
operators' occupation taxes imposed in the municipality
imposing the tax. The corporate authorities of the municipality
shall deposit the proceeds of the taxes imposed under
subsections (10) and (11) of Section 11-74.3-3 into a special
fund of the municipality called the "[Name of] Business
District Tax Allocation Fund" for the purpose of paying or
reimbursing business district project costs and obligations
incurred in the payment of those costs.
(b) The corporate authorities of a municipality that has

SB3445 - 504 - LRB100 20331 HLH 35618 b
designated a business district under this Law may, by
ordinance, impose a Business District Retailers' Occupation
Tax upon all persons engaged in the business of selling
tangible personal property, other than an item of tangible
personal property titled or registered with an agency of this
State's government, at retail in the business district at a
rate not to exceed 1% of the gross receipts from the sales made
in the course of such business, to be imposed only in 0.25%
increments. The tax may not be imposed on tangible personal
property taxed at the rate of 1% under the Retailers'
Occupation Tax Act food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, soft drinks, and food that has been
prepared for immediate consumption), prescription and
nonprescription medicines, drugs, medical appliances,
modifications to a motor vehicle for the purpose of rendering
it usable by a person with a disability, and insulin, urine
testing materials, syringes, and needles used by diabetics, for
human use.
The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the Department of Revenue. The
certificate of registration that is issued by the Department to
a retailer under the Retailers' Occupation Tax Act shall permit
the retailer to engage in a business that is taxable under any
ordinance or resolution enacted pursuant to this subsection

SB3445 - 505 - LRB100 20331 HLH 35618 b
without registering separately with the Department under such
ordinance or resolution or under this subsection. The
Department of Revenue shall have full power to administer and
enforce this subsection; to collect all taxes and penalties due
under this subsection in the manner hereinafter provided; and
to determine all rights to credit memoranda arising on account
of the erroneous payment of tax or penalty under this
subsection. In the administration of, and compliance with, this
subsection, the Department and persons who are subject to this
subsection shall have the same rights, remedies, privileges,
immunities, powers and duties, and be subject to the same
conditions, restrictions, limitations, penalties, exclusions,
exemptions, and definitions of terms and employ the same modes
of procedure, as are prescribed in Sections 1, 1a through 1o, 2
through 2-65 (in respect to all provisions therein other than
the State rate of tax), 2c through 2h, 3 (except as to the
disposition of taxes and penalties collected), 4, 5, 5a, 5c,
5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11,
12, 13, and 14 of the Retailers' Occupation Tax Act and all
provisions of the Uniform Penalty and Interest Act, as fully as
if those provisions were set forth herein.
Persons subject to any tax imposed under this subsection
may reimburse themselves for their seller's tax liability under
this subsection by separately stating the tax as an additional
charge, which charge may be stated in combination, in a single
amount, with State taxes that sellers are required to collect

SB3445 - 506 - LRB100 20331 HLH 35618 b
under the Use Tax Act, in accordance with such bracket
schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the business district retailers' occupation
tax fund.
The Department shall immediately pay over to the State
Treasurer, ex officio, as trustee, all taxes, penalties, and
interest collected under this subsection for deposit into the
business district retailers' occupation tax fund.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected under this subsection
during the second preceding calendar month for sales within a
STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities

SB3445 - 507 - LRB100 20331 HLH 35618 b
from the business district retailers' occupation tax fund, the
municipalities to be those from which retailers have paid taxes
or penalties under this subsection to the Department during the
second preceding calendar month. The amount to be paid to each
municipality shall be the amount (not including credit
memoranda) collected under this subsection during the second
preceding calendar month by the Department plus an amount the
Department determines is necessary to offset any amounts that
were erroneously paid to a different taxing body, and not
including an amount equal to the amount of refunds made during
the second preceding calendar month by the Department, less 2%
of that amount, which shall be deposited into the Tax
Compliance and Administration Fund and shall be used by the
Department, subject to appropriation, to cover the costs of the
Department in administering and enforcing the provisions of
this subsection, on behalf of such municipality, and not
including any amount that the Department determines is
necessary to offset any amounts that were payable to a
different taxing body but were erroneously paid to the
municipality, and not including any amounts that are
transferred to the STAR Bonds Revenue Fund. Within 10 days
after receipt by the Comptroller of the disbursement
certification to the municipalities provided for in this
subsection to be given to the Comptroller by the Department,
the Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with the directions contained

SB3445 - 508 - LRB100 20331 HLH 35618 b
in the certification. The proceeds of the tax paid to
municipalities under this subsection shall be deposited into
the Business District Tax Allocation Fund by the municipality.
An ordinance imposing or discontinuing the tax under this
subsection or effecting a change in the rate thereof shall
either (i) be adopted and a certified copy thereof filed with
the Department on or before the first day of April, whereupon
the Department, if all other requirements of this subsection
are met, shall proceed to administer and enforce this
subsection as of the first day of July next following the
adoption and filing; or (ii) be adopted and a certified copy
thereof filed with the Department on or before the first day of
October, whereupon, if all other requirements of this
subsection are met, the Department shall proceed to administer
and enforce this subsection as of the first day of January next
following the adoption and filing.
The Department of Revenue shall not administer or enforce
an ordinance imposing, discontinuing, or changing the rate of
the tax under this subsection, until the municipality also
provides, in the manner prescribed by the Department, the
boundaries of the business district and each address in the
business district in such a way that the Department can
determine by its address whether a business is located in the
business district. The municipality must provide this boundary
and address information to the Department on or before April 1
for administration and enforcement of the tax under this

SB3445 - 509 - LRB100 20331 HLH 35618 b
subsection by the Department beginning on the following July 1
and on or before October 1 for administration and enforcement
of the tax under this subsection by the Department beginning on
the following January 1. The Department of Revenue shall not
administer or enforce any change made to the boundaries of a
business district or address change, addition, or deletion
until the municipality reports the boundary change or address
change, addition, or deletion to the Department in the manner
prescribed by the Department. The municipality must provide
this boundary change information or address change, addition,
or deletion to the Department on or before April 1 for
administration and enforcement by the Department of the change
beginning on the following July 1 and on or before October 1
for administration and enforcement by the Department of the
change beginning on the following January 1. The retailers in
the business district shall be responsible for charging the tax
imposed under this subsection. If a retailer is incorrectly
included or excluded from the list of those required to collect
the tax under this subsection, both the Department of Revenue
and the retailer shall be held harmless if they reasonably
relied on information provided by the municipality.
A municipality that imposes the tax under this subsection
must submit to the Department of Revenue any other information
as the Department may require for the administration and
enforcement of the tax.
When certifying the amount of a monthly disbursement to a

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municipality under this subsection, the Department shall
increase or decrease the amount by an amount necessary to
offset any misallocation of previous disbursements. The offset
amount shall be the amount erroneously disbursed within the
previous 6 months from the time a misallocation is discovered.
Nothing in this subsection shall be construed to authorize
the municipality to impose a tax upon the privilege of engaging
in any business which under the Constitution of the United
States may not be made the subject of taxation by this State.
If a tax is imposed under this subsection (b), a tax shall
also be imposed under subsection (c) of this Section.
(c) If a tax has been imposed under subsection (b), a
Business District Service Occupation Tax shall also be imposed
upon all persons engaged, in the business district, in the
business of making sales of service, who, as an incident to
making those sales of service, transfer tangible personal
property within the business district, either in the form of
tangible personal property or in the form of real estate as an
incident to a sale of service. The tax shall be imposed at the
same rate as the tax imposed in subsection (b) and shall not
exceed 1% of the selling price of tangible personal property so
transferred within the business district, to be imposed only in
0.25% increments. The tax may not be imposed on tangible
personal property taxed at the 1% rate under the Service
Occupation Tax Act food for human consumption that is to be
consumed off the premises where it is sold (other than

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alcoholic beverages, soft drinks, and food that has been
prepared for immediate consumption), prescription and
nonprescription medicines, drugs, medical appliances,
modifications to a motor vehicle for the purpose of rendering
it usable by a person with a disability, and insulin, urine
testing materials, syringes, and needles used by diabetics, for
human use.
The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the Department of Revenue. The
certificate of registration which is issued by the Department
to a retailer under the Retailers' Occupation Tax Act or under
the Service Occupation Tax Act shall permit such registrant to
engage in a business which is taxable under any ordinance or
resolution enacted pursuant to this subsection without
registering separately with the Department under such
ordinance or resolution or under this subsection. The
Department of Revenue shall have full power to administer and
enforce this subsection; to collect all taxes and penalties due
under this subsection; to dispose of taxes and penalties so
collected in the manner hereinafter provided; and to determine
all rights to credit memoranda arising on account of the
erroneous payment of tax or penalty under this subsection. In
the administration of, and compliance with this subsection, the
Department and persons who are subject to this subsection shall
have the same rights, remedies, privileges, immunities, powers

SB3445 - 512 - LRB100 20331 HLH 35618 b
and duties, and be subject to the same conditions,
restrictions, limitations, penalties, exclusions, exemptions,
and definitions of terms and employ the same modes of procedure
as are prescribed in Sections 2, 2a through 2d, 3 through 3-50
(in respect to all provisions therein other than the State rate
of tax), 4 (except that the reference to the State shall be to
the business district), 5, 7, 8 (except that the jurisdiction
to which the tax shall be a debt to the extent indicated in
that Section 8 shall be the municipality), 9 (except as to the
disposition of taxes and penalties collected, and except that
the returned merchandise credit for this tax may not be taken
against any State tax), 10, 11, 12 (except the reference
therein to Section 2b of the Retailers' Occupation Tax Act), 13
(except that any reference to the State shall mean the
municipality), the first paragraph of Section 15, and Sections
16, 17, 18, 19 and 20 of the Service Occupation Tax Act and all
provisions of the Uniform Penalty and Interest Act, as fully as
if those provisions were set forth herein.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability hereunder by separately stating the
tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax that servicemen
are authorized to collect under the Service Use Tax Act, in
accordance with such bracket schedules as the Department may
prescribe.

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Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in such notification
from the Department. Such refund shall be paid by the State
Treasurer out of the business district retailers' occupation
tax fund.
The Department shall forthwith pay over to the State
Treasurer, ex-officio, as trustee, all taxes, penalties, and
interest collected under this subsection for deposit into the
business district retailers' occupation tax fund.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected under this subsection
during the second preceding calendar month for sales within a
STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to named municipalities
from the business district retailers' occupation tax fund, the
municipalities to be those from which suppliers and servicemen

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have paid taxes or penalties under this subsection to the
Department during the second preceding calendar month. The
amount to be paid to each municipality shall be the amount (not
including credit memoranda) collected under this subsection
during the second preceding calendar month by the Department,
less 2% of that amount, which shall be deposited into the Tax
Compliance and Administration Fund and shall be used by the
Department, subject to appropriation, to cover the costs of the
Department in administering and enforcing the provisions of
this subsection, and not including an amount equal to the
amount of refunds made during the second preceding calendar
month by the Department on behalf of such municipality, and not
including any amounts that are transferred to the STAR Bonds
Revenue Fund. Within 10 days after receipt, by the Comptroller,
of the disbursement certification to the municipalities,
provided for in this subsection to be given to the Comptroller
by the Department, the Comptroller shall cause the orders to be
drawn for the respective amounts in accordance with the
directions contained in such certification. The proceeds of the
tax paid to municipalities under this subsection shall be
deposited into the Business District Tax Allocation Fund by the
municipality.
An ordinance imposing or discontinuing the tax under this
subsection or effecting a change in the rate thereof shall
either (i) be adopted and a certified copy thereof filed with
the Department on or before the first day of April, whereupon

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

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Department in the manner prescribed by the Department. The
municipality must provide this boundary change information or
address change, addition, or deletion to the Department on or
before April 1 for administration and enforcement by the
Department of the change beginning on the following July 1 and
on or before October 1 for administration and enforcement by
the Department of the change beginning on the following January
1. The retailers in the business district shall be responsible
for charging the tax imposed under this subsection. If a
retailer is incorrectly included or excluded from the list of
those required to collect the tax under this subsection, both
the Department of Revenue and the retailer shall be held
harmless if they reasonably relied on information provided by
the municipality.
A municipality that imposes the tax under this subsection
must submit to the Department of Revenue any other information
as the Department may require for the administration and
enforcement of the tax.
Nothing in this subsection shall be construed to authorize
the municipality to impose a tax upon the privilege of engaging
in any business which under the Constitution of the United
States may not be made the subject of taxation by the State.
If a tax is imposed under this subsection (c), a tax shall
also be imposed under subsection (b) of this Section.
(d) By ordinance, a municipality that has designated a
business district under this Law may impose an occupation tax

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upon all persons engaged in the business district in the
business of renting, leasing, or letting rooms in a hotel, as
defined in the Hotel Operators' Occupation Tax Act, at a rate
not to exceed 1% of the gross rental receipts from the renting,
leasing, or letting of hotel rooms within the business
district, to be imposed only in 0.25% increments, excluding,
however, from gross rental receipts the proceeds of renting,
leasing, or letting to permanent residents of a hotel, as
defined in the Hotel Operators' Occupation Tax Act, and
proceeds from the tax imposed under subsection (c) of Section
13 of the Metropolitan Pier and Exposition Authority Act.
The tax imposed by the municipality under this subsection
and all civil penalties that may be assessed as an incident to
that tax shall be collected and enforced by the municipality
imposing the tax. The municipality shall have full power to
administer and enforce this subsection, to collect all taxes
and penalties due under this subsection, to dispose of taxes
and penalties so collected in the manner provided in this
subsection, and to determine all rights to credit memoranda
arising on account of the erroneous payment of tax or penalty
under this subsection. In the administration of and compliance
with this subsection, the municipality and persons who are
subject to this subsection shall have the same rights,
remedies, privileges, immunities, powers, and duties, shall be
subject to the same conditions, restrictions, limitations,
penalties, and definitions of terms, and shall employ the same

SB3445 - 518 - LRB100 20331 HLH 35618 b
modes of procedure as are employed with respect to a tax
adopted by the municipality under Section 8-3-14 of this Code.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
tax liability for that tax by separately stating that tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State taxes imposed under the Hotel
Operators' Occupation Tax Act, and with any other tax.
Nothing in this subsection shall be construed to authorize
a municipality to impose a tax upon the privilege of engaging
in any business which under the Constitution of the United
States may not be made the subject of taxation by this State.
The proceeds of the tax imposed under this subsection shall
be deposited into the Business District Tax Allocation Fund.
(e) Obligations secured by the Business District Tax
Allocation Fund may be issued to provide for the payment or
reimbursement of business district project costs. Those
obligations, when so issued, shall be retired in the manner
provided in the ordinance authorizing the issuance of those
obligations by the receipts of taxes imposed pursuant to
subsections (10) and (11) of Section 11-74.3-3 and by other
revenue designated or pledged by the municipality. A
municipality may in the ordinance pledge, for any period of
time up to and including the dissolution date, all or any part
of the funds in and to be deposited in the Business District
Tax Allocation Fund to the payment of business district project

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costs and obligations. Whenever a municipality pledges all of
the funds to the credit of a business district tax allocation
fund to secure obligations issued or to be issued to pay or
reimburse business district project costs, the municipality
may specifically provide that funds remaining to the credit of
such business district tax allocation fund after the payment of
such obligations shall be accounted for annually and shall be
deemed to be "surplus" funds, and such "surplus" funds shall be
expended by the municipality for any business district project
cost as approved in the business district plan. Whenever a
municipality pledges less than all of the monies to the credit
of a business district tax allocation fund to secure
obligations issued or to be issued to pay or reimburse business
district project costs, the municipality shall provide that
monies to the credit of the business district tax allocation
fund and not subject to such pledge or otherwise encumbered or
required for payment of contractual obligations for specific
business district project costs shall be calculated annually
and shall be deemed to be "surplus" funds, and such "surplus"
funds shall be expended by the municipality for any business
district project cost as approved in the business district
plan.
No obligation issued pursuant to this Law and secured by a
pledge of all or any portion of any revenues received or to be
received by the municipality from the imposition of taxes
pursuant to subsection (10) of Section 11-74.3-3, shall be

SB3445 - 520 - LRB100 20331 HLH 35618 b
deemed to constitute an economic incentive agreement under
Section 8-11-20, notwithstanding the fact that such pledge
provides for the sharing, rebate, or payment of retailers'
occupation taxes or service occupation taxes imposed pursuant
to subsection (10) of Section 11-74.3-3 and received or to be
received by the municipality from the development or
redevelopment of properties in the business district.
Without limiting the foregoing in this Section, the
municipality may further secure obligations secured by the
business district tax allocation fund with a pledge, for a
period not greater than the term of the obligations and in any
case not longer than the dissolution date, of any part or any
combination of the following: (i) net revenues of all or part
of any business district project; (ii) taxes levied or imposed
by the municipality on any or all property in the municipality,
including, specifically, taxes levied or imposed by the
municipality in a special service area pursuant to the Special
Service Area Tax Law; (iii) the full faith and credit of the
municipality; (iv) a mortgage on part or all of the business
district project; or (v) any other taxes or anticipated
receipts that the municipality may lawfully pledge.
Such obligations may be issued in one or more series, bear
such date or dates, become due at such time or times as therein
provided, but in any case not later than (i) 20 years after the
date of issue or (ii) the dissolution date, whichever is
earlier, bear interest payable at such intervals and at such

SB3445 - 521 - LRB100 20331 HLH 35618 b
rate or rates as set forth therein, except as may be limited by
applicable law, which rate or rates may be fixed or variable,
be in such denominations, be in such form, either coupon,
registered, or book-entry, carry such conversion, registration
and exchange privileges, be subject to defeasance upon such
terms, have such rank or priority, be executed in such manner,
be payable in such medium or payment at such place or places
within or without the State, make provision for a corporate
trustee within or without the State with respect to such
obligations, prescribe the rights, powers, and duties thereof
to be exercised for the benefit of the municipality and the
benefit of the owners of such obligations, provide for the
holding in trust, investment, and use of moneys, funds, and
accounts held under an ordinance, provide for assignment of and
direct payment of the moneys to pay such obligations or to be
deposited into such funds or accounts directly to such trustee,
be subject to such terms of redemption with or without premium,
and be sold at such price, all as the corporate authorities
shall determine. No referendum approval of the electors shall
be required as a condition to the issuance of obligations
pursuant to this Law except as provided in this Section.
In the event the municipality authorizes the issuance of
obligations pursuant to the authority of this Law secured by
the full faith and credit of the municipality, or pledges ad
valorem taxes pursuant to this subsection, which obligations
are other than obligations which may be issued under home rule

SB3445 - 522 - LRB100 20331 HLH 35618 b
powers provided by Section 6 of Article VII of the Illinois
Constitution or which ad valorem taxes are other than ad
valorem taxes which may be pledged under home rule powers
provided by Section 6 of Article VII of the Illinois
Constitution or which are levied in a special service area
pursuant to the Special Service Area Tax Law, the ordinance
authorizing the issuance of those obligations or pledging those
taxes shall be published within 10 days after the ordinance has
been adopted, in a newspaper having a general circulation
within the municipality. The publication of the ordinance shall
be accompanied by a notice of (i) the specific number of voters
required to sign a petition requesting the question of the
issuance of the obligations or pledging such ad valorem taxes
to be submitted to the electors; (ii) the time within which the
petition must be filed; and (iii) the date of the prospective
referendum. The municipal clerk shall provide a petition form
to any individual requesting one.
If no petition is filed with the municipal clerk, as
hereinafter provided in this Section, within 21 days after the
publication of the ordinance, the ordinance shall be in effect.
However, if within that 21-day period a petition is filed with
the municipal clerk, signed by electors numbering not less than
15% of the number of electors voting for the mayor or president
at the last general municipal election, asking that the
question of issuing obligations using full faith and credit of
the municipality as security for the cost of paying or

SB3445 - 523 - LRB100 20331 HLH 35618 b
reimbursing business district project costs, or of pledging
such ad valorem taxes for the payment of those obligations, or
both, be submitted to the electors of the municipality, the
municipality shall not be authorized to issue obligations of
the municipality using the full faith and credit of the
municipality as security or pledging such ad valorem taxes for
the payment of those obligations, or both, until the
proposition has been submitted to and approved by a majority of
the voters voting on the proposition at a regularly scheduled
election. The municipality shall certify the proposition to the
proper election authorities for submission in accordance with
the general election law.
The ordinance authorizing the obligations may provide that
the obligations shall contain a recital that they are issued
pursuant to this Law, which recital shall be conclusive
evidence of their validity and of the regularity of their
issuance.
In the event the municipality authorizes issuance of
obligations pursuant to this Law secured by the full faith and
credit of the municipality, the ordinance authorizing the
obligations may provide for the levy and collection of a direct
annual tax upon all taxable property within the municipality
sufficient to pay the principal thereof and interest thereon as
it matures, which levy may be in addition to and exclusive of
the maximum of all other taxes authorized to be levied by the
municipality, which levy, however, shall be abated to the

SB3445 - 524 - LRB100 20331 HLH 35618 b
extent that monies from other sources are available for payment
of the obligations and the municipality certifies the amount of
those monies available to the county clerk.
A certified copy of the ordinance shall be filed with the
county clerk of each county in which any portion of the
municipality is situated, and shall constitute the authority
for the extension and collection of the taxes to be deposited
in the business district tax allocation fund.
A municipality may also issue its obligations to refund, in
whole or in part, obligations theretofore issued by the
municipality under the authority of this Law, whether at or
prior to maturity. However, the last maturity of the refunding
obligations shall not be expressed to mature later than the
dissolution date.
In the event a municipality issues obligations under home
rule powers or other legislative authority, the proceeds of
which are pledged to pay or reimburse business district project
costs, the municipality may, if it has followed the procedures
in conformance with this Law, retire those obligations from
funds in the business district tax allocation fund in amounts
and in such manner as if those obligations had been issued
pursuant to the provisions of this Law.
No obligations issued pursuant to this Law shall be
regarded as indebtedness of the municipality issuing those
obligations or any other taxing district for the purpose of any
limitation imposed by law.

SB3445 - 525 - LRB100 20331 HLH 35618 b
Obligations issued pursuant to this Law shall not be
subject to the provisions of the Bond Authorization Act.
(f) When business district project costs, including,
without limitation, all obligations paying or reimbursing
business district project costs have been paid, any surplus
funds then remaining in the Business District Tax Allocation
Fund shall be distributed to the municipal treasurer for
deposit into the general corporate fund of the municipality.
Upon payment of all business district project costs and
retirement of all obligations paying or reimbursing business
district project costs, but in no event more than 23 years
after the date of adoption of the ordinance imposing taxes
pursuant to subsection (10) or (11) of Section 11-74.3-3, the
municipality shall adopt an ordinance immediately rescinding
the taxes imposed pursuant to subsection (10) or (11) of
Section 11-74.3-3.
(Source: P.A. 99-143, eff. 7-27-15.)
Section 115. The Flood Prevention District Act is amended
by changing Section 25 as follows:
(70 ILCS 750/25)
Sec. 25. Flood prevention retailers' and service
occupation taxes.
(a) If the Board of Commissioners of a flood prevention
district determines that an emergency situation exists

SB3445 - 526 - LRB100 20331 HLH 35618 b
regarding levee repair or flood prevention, and upon an
ordinance confirming the determination adopted by the
affirmative vote of a majority of the members of the county
board of the county in which the district is situated, the
county may impose a flood prevention retailers' occupation tax
upon all persons engaged in the business of selling tangible
personal property at retail within the territory of the
district to provide revenue to pay the costs of providing
emergency levee repair and flood prevention and to secure the
payment of bonds, notes, and other evidences of indebtedness
issued under this Act for a period not to exceed 25 years or as
required to repay the bonds, notes, and other evidences of
indebtedness issued under this Act. The tax rate shall be 0.25%
of the gross receipts from all taxable sales made in the course
of that business. The tax imposed under this Section and all
civil penalties that may be assessed as an incident thereof
shall be collected and enforced by the State Department of
Revenue. The Department shall have full power to administer and
enforce this Section; to collect all taxes and penalties so
collected in the manner hereinafter provided; and to determine
all rights to credit memoranda arising on account of the
erroneous payment of tax or penalty hereunder.
In the administration of and compliance with this
subsection, the Department and persons who are subject to this
subsection (i) have the same rights, remedies, privileges,
immunities, powers, and duties, (ii) are subject to the same

SB3445 - 527 - LRB100 20331 HLH 35618 b
conditions, restrictions, limitations, penalties, and
definitions of terms, and (iii) shall employ the same modes of
procedure as are set forth in Sections 1 through 1o, 2 through
2-70 (in respect to all provisions contained in those Sections
other than the State rate of tax), 2a through 2h, 3 (except as
to the disposition of taxes and penalties collected), 4, 5, 5a,
5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9,
10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax Act
and all provisions of the Uniform Penalty and Interest Act as
if those provisions were set forth in this subsection.
Persons subject to any tax imposed under this Section may
reimburse themselves for their seller's tax liability
hereunder by separately stating the tax as an additional
charge, which charge may be stated in combination in a single
amount with State taxes that sellers are required to collect
under the Use Tax Act, under any bracket schedules the
Department may prescribe.
If a tax is imposed under this subsection (a), a tax shall
also be imposed under subsection (b) of this Section.
(b) If a tax has been imposed under subsection (a), a flood
prevention service occupation tax shall also be imposed upon
all persons engaged within the territory of the district in the
business of making sales of service, who, as an incident to
making the sales of service, transfer tangible personal
property, either in the form of tangible personal property or
in the form of real estate as an incident to a sale of service

SB3445 - 528 - LRB100 20331 HLH 35618 b
to provide revenue to pay the costs of providing emergency
levee repair and flood prevention and to secure the payment of
bonds, notes, and other evidences of indebtedness issued under
this Act for a period not to exceed 25 years or as required to
repay the bonds, notes, and other evidences of indebtedness.
The tax rate shall be 0.25% of the selling price of all
tangible personal property transferred.
The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the State Department of Revenue. The
Department shall have full power to administer and enforce this
subsection; to collect all taxes and penalties due hereunder;
to dispose of taxes and penalties collected in the manner
hereinafter provided; and to determine all rights to credit
memoranda arising on account of the erroneous payment of tax or
penalty hereunder.
In the administration of and compliance with this
subsection, the Department and persons who are subject to this
subsection shall (i) have the same rights, remedies,
privileges, immunities, powers, and duties, (ii) be subject to
the same conditions, restrictions, limitations, penalties, and
definitions of terms, and (iii) employ the same modes of
procedure as are set forth in Sections 2 (except that the
reference to State in the definition of supplier maintaining a
place of business in this State means the district), 2a through
2d, 3 through 3-50 (in respect to all provisions contained in

SB3445 - 529 - LRB100 20331 HLH 35618 b
those Sections other than the State rate of tax), 4 (except
that the reference to the State shall be to the district), 5,
7, 8 (except that the jurisdiction to which the tax is a debt
to the extent indicated in that Section 8 is the district), 9
(except as to the disposition of taxes and penalties
collected), 10, 11, 12 (except the reference therein to Section
2b of the Retailers' Occupation Tax Act), 13 (except that any
reference to the State means the district), Section 15, 16, 17,
18, 19, and 20 of the Service Occupation Tax Act and all
provisions of the Uniform Penalty and Interest Act, as fully as
if those provisions were set forth herein.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability hereunder by separately stating the
tax as an additional charge, that charge may be stated in
combination in a single amount with State tax that servicemen
are authorized to collect under the Service Use Tax Act, under
any bracket schedules the Department may prescribe.
(c) The taxes imposed in subsections (a) and (b) may not be
imposed on personal property titled or registered with an
agency of the State or on personal property taxed at the 1%
rate under the Retailers' Occupation Tax Act and the Service
Occupation Tax Act ; food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, soft drinks, and food that has been
prepared for immediate consumption); prescription and

SB3445 - 530 - LRB100 20331 HLH 35618 b
non-prescription medicines, drugs, and medical appliances;
modifications to a motor vehicle for the purpose of rendering
it usable by a person with a disability; or insulin, urine
testing materials, and syringes and needles used by diabetics.
(d) Nothing in this Section shall be construed to authorize
the district to impose a tax upon the privilege of engaging in
any business that under the Constitution of the United States
may not be made the subject of taxation by the State.
(e) The certificate of registration that is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act or a serviceman under the Service Occupation Tax Act
permits the retailer or serviceman to engage in a business that
is taxable without registering separately with the Department
under an ordinance or resolution under this Section.
(f) The Department shall immediately pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties
collected under this Section to be deposited into the Flood
Prevention Occupation Tax Fund, which shall be an
unappropriated trust fund held outside the State treasury.
On or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to the counties from which
retailers or servicemen have paid taxes or penalties to the
Department during the second preceding calendar month. The
amount to be paid to each county is equal to the amount (not
including credit memoranda) collected from the county under

SB3445 - 531 - LRB100 20331 HLH 35618 b
this Section during the second preceding calendar month by the
Department, (i) less 2% of that amount, which shall be
deposited into the Tax Compliance and Administration Fund and
shall be used by the Department in administering and enforcing
the provisions of this Section on behalf of the county, (ii)
plus an amount that the Department determines is necessary to
offset any amounts that were erroneously paid to a different
taxing body; (iii) less an amount equal to the amount of
refunds made during the second preceding calendar month by the
Department on behalf of the county; and (iv) less any amount
that the Department determines is necessary to offset any
amounts that were payable to a different taxing body but were
erroneously paid to the county. When certifying the amount of a
monthly disbursement to a county under this Section, the
Department shall increase or decrease the amounts by an amount
necessary to offset any miscalculation of previous
disbursements within the previous 6 months from the time a
miscalculation is discovered.
Within 10 days after receipt by the Comptroller from the
Department of the disbursement certification to the counties
provided for in this Section, the Comptroller shall cause the
orders to be drawn for the respective amounts in accordance
with directions contained in the certification.
If the Department determines that a refund should be made
under this Section to a claimant instead of issuing a credit
memorandum, then the Department shall notify the Comptroller,

SB3445 - 532 - LRB100 20331 HLH 35618 b
who shall cause the order to be drawn for the amount specified
and to the person named in the notification from the
Department. The refund shall be paid by the Treasurer out of
the Flood Prevention Occupation Tax Fund.
(g) If a county imposes a tax under this Section, then the
county board shall, by ordinance, discontinue the tax upon the
payment of all indebtedness of the flood prevention district.
The tax shall not be discontinued until all indebtedness of the
District has been paid.
(h) Any ordinance imposing the tax under this Section, or
any ordinance that discontinues the tax, must be certified by
the county clerk and filed with the Illinois Department of
Revenue either (i) on or before the first day of April,
whereupon the Department shall proceed to administer and
enforce the tax or change in the rate as of the first day of
July next following the filing; or (ii) on or before the first
day of October, whereupon the Department shall proceed to
administer and enforce the tax or change in the rate as of the
first day of January next following the filing.
(j) County Flood Prevention Occupation Tax Fund. All
proceeds received by a county from a tax distribution under
this Section must be maintained in a special fund known as the
[name of county] flood prevention occupation tax fund. The
county shall, at the direction of the flood prevention
district, use moneys in the fund to pay the costs of providing
emergency levee repair and flood prevention and to pay bonds,

SB3445 - 533 - LRB100 20331 HLH 35618 b
notes, and other evidences of indebtedness issued under this
Act.
(k) This Section may be cited as the Flood Prevention
Occupation Tax Law.
(Source: P.A. 99-143, eff. 7-27-15; 99-217, eff. 7-31-15;
99-642, eff. 7-28-16.)
Section 120. The Metro-East Park and Recreation District
Act is amended by changing Section 30 as follows:
(70 ILCS 1605/30)
Sec. 30. Taxes.
(a) The board shall impose a tax upon all persons engaged
in the business of selling tangible personal property, other
than personal property titled or registered with an agency of
this State's government, at retail in the District on the gross
receipts from the sales made in the course of business. This
tax shall be imposed only at the rate of one-tenth of one per
cent.
This additional tax may not be imposed on the sales of
tangible personal property taxed at the 1% rate under the
Retailers' Occupation Tax Act food for human consumption that
is to be consumed off the premises where it is sold (other than
alcoholic beverages, soft drinks, and food which has been
prepared for immediate consumption) and prescription and
non-prescription medicines, drugs, medical appliances, and

SB3445 - 534 - LRB100 20331 HLH 35618 b
insulin, urine testing materials, syringes, and needles used by
diabetics. The tax imposed by the Board under this Section and
all civil penalties that may be assessed as an incident of the
tax shall be collected and enforced by the Department of
Revenue. The certificate of registration that is issued by the
Department to a retailer under the Retailers' Occupation Tax
Act shall permit the retailer to engage in a business that is
taxable without registering separately with the Department
under an ordinance or resolution under this Section. The
Department has full power to administer and enforce this
Section, to collect all taxes and penalties due under this
Section, to dispose of taxes and penalties so collected in the
manner provided in this Section, and to determine all rights to
credit memoranda arising on account of the erroneous payment of
a tax or penalty under this Section. In the administration of
and compliance with this Section, the Department and persons
who are subject to this Section shall (i) have the same rights,
remedies, privileges, immunities, powers, and duties, (ii) be
subject to the same conditions, restrictions, limitations,
penalties, and definitions of terms, and (iii) employ the same
modes of procedure as are prescribed in Sections 1, 1a, 1a-1,
1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in respect
to all provisions contained in those Sections other than the
State rate of tax), 2-12, 2-15 through 2-70, 2a, 2b, 2c, 3
(except provisions relating to transaction returns and quarter
monthly payments), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,

SB3445 - 535 - LRB100 20331 HLH 35618 b
5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13
of the Retailers' Occupation Tax Act and the Uniform Penalty
and Interest Act as if those provisions were set forth in this
Section.
Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
sellers' tax liability by separately stating the tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State tax which sellers are required
to collect under the Use Tax Act, pursuant to such bracketed
schedules as the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the State Metro-East Park and Recreation
District Fund.
(b) If a tax has been imposed under subsection (a), a
service occupation tax shall also be imposed at the same rate
upon all persons engaged, in the District, in the business of
making sales of service, who, as an incident to making those
sales of service, transfer tangible personal property within
the District as an incident to a sale of service. This tax may
not be imposed on tangible personal property taxed at the 1%

SB3445 - 536 - LRB100 20331 HLH 35618 b
rate under the Service Occupation Tax Act sales of food for
human consumption that is to be consumed off the premises where
it is sold (other than alcoholic beverages, soft drinks, and
food prepared for immediate consumption) and prescription and
non-prescription medicines, drugs, medical appliances, and
insulin, urine testing materials, syringes, and needles used by
diabetics. The tax imposed under this subsection and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the Department of Revenue. The
Department has full power to administer and enforce this
subsection; to collect all taxes and penalties due hereunder;
to dispose of taxes and penalties so collected in the manner
hereinafter provided; and to determine all rights to credit
memoranda arising on account of the erroneous payment of tax or
penalty hereunder. In the administration of, and compliance
with this subsection, the Department and persons who are
subject to this paragraph shall (i) have the same rights,
remedies, privileges, immunities, powers, and duties, (ii) be
subject to the same conditions, restrictions, limitations,
penalties, exclusions, exemptions, and definitions of terms,
and (iii) employ the same modes of procedure as are prescribed
in Sections 2 (except that the reference to State in the
definition of supplier maintaining a place of business in this
State shall mean the District), 2a, 2b, 2c, 3 through 3-50 (in
respect to all provisions therein other than the State rate of
tax), 4 (except that the reference to the State shall be to the

SB3445 - 537 - LRB100 20331 HLH 35618 b
District), 5, 7, 8 (except that the jurisdiction to which the
tax shall be a debt to the extent indicated in that Section 8
shall be the District), 9 (except as to the disposition of
taxes and penalties collected), 10, 11, 12 (except the
reference therein to Section 2b of the Retailers' Occupation
Tax Act), 13 (except that any reference to the State shall mean
the District), Sections 15, 16, 17, 18, 19 and 20 of the
Service Occupation Tax Act and the Uniform Penalty and Interest
Act, as fully as if those provisions were set forth herein.
Persons subject to any tax imposed under the authority
granted in this subsection may reimburse themselves for their
serviceman's tax liability by separately stating the tax as an
additional charge, which charge may be stated in combination,
in a single amount, with State tax that servicemen are
authorized to collect under the Service Use Tax Act, in
accordance with such bracket schedules as the Department may
prescribe.
Whenever the Department determines that a refund should be
made under this subsection to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the State Metro-East Park and Recreation
District Fund.
Nothing in this subsection shall be construed to authorize

SB3445 - 538 - LRB100 20331 HLH 35618 b
the board to impose a tax upon the privilege of engaging in any
business which under the Constitution of the United States may
not be made the subject of taxation by the State.
(c) The Department shall immediately pay over to the State
Treasurer, ex officio, as trustee, all taxes and penalties
collected under this Section to be deposited into the State
Metro-East Park and Recreation District Fund, which shall be an
unappropriated trust fund held outside of the State treasury.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected under this Section
during the second preceding calendar month for sales within a
STAR bond district. The Department shall make this
certification only if the Metro East Park and Recreation
District imposes a tax on real property as provided in the
definition of "local sales taxes" under the Innovation
Development and Economy Act.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money pursuant to Section 35 of
this Act to the District from which retailers have paid taxes
or penalties to the Department during the second preceding

SB3445 - 539 - LRB100 20331 HLH 35618 b
calendar month. The amount to be paid to the District shall be
the amount (not including credit memoranda) collected under
this Section during the second preceding calendar month by the
Department plus an amount the Department determines is
necessary to offset any amounts that were erroneously paid to a
different taxing body, and not including (i) an amount equal to
the amount of refunds made during the second preceding calendar
month by the Department on behalf of the District, (ii) any
amount that the Department determines is necessary to offset
any amounts that were payable to a different taxing body but
were erroneously paid to the District, (iii) any amounts that
are transferred to the STAR Bonds Revenue Fund, and (iv) 2% of
the remainder, which the Department shall transfer into the Tax
Compliance and Administration Fund. The Department, at the time
of each monthly disbursement to the District, shall prepare and
certify to the State Comptroller the amount to be transferred
into the Tax Compliance and Administration Fund under this
subsection. Within 10 days after receipt by the Comptroller of
the disbursement certification to the District and the Tax
Compliance and Administration Fund provided for in this Section
to be given to the Comptroller by the Department, the
Comptroller shall cause the orders to be drawn for the
respective amounts in accordance with directions contained in
the certification.
(d) For the purpose of determining whether a tax authorized
under this Section is applicable, a retail sale by a producer

SB3445 - 540 - LRB100 20331 HLH 35618 b
of coal or another mineral mined in Illinois is a sale at
retail at the place where the coal or other mineral mined in
Illinois is extracted from the earth. This paragraph does not
apply to coal or another mineral when it is delivered or
shipped by the seller to the purchaser at a point outside
Illinois so that the sale is exempt under the United States
Constitution as a sale in interstate or foreign commerce.
(e) Nothing in this Section shall be construed to authorize
the board to impose a tax upon the privilege of engaging in any
business that under the Constitution of the United States may
not be made the subject of taxation by this State.
(f) An ordinance imposing a tax under this Section or an
ordinance extending the imposition of a tax to an additional
county or counties shall be certified by the board and filed
with the Department of Revenue either (i) on or before the
first day of April, whereupon the Department shall proceed to
administer and enforce the tax as of the first day of July next
following the filing; or (ii) on or before the first day of
October, whereupon the Department shall proceed to administer
and enforce the tax as of the first day of January next
following the filing.
(g) When certifying the amount of a monthly disbursement to
the District under this Section, the Department shall increase
or decrease the amounts by an amount necessary to offset any
misallocation of previous disbursements. The offset amount
shall be the amount erroneously disbursed within the previous 6

SB3445 - 541 - LRB100 20331 HLH 35618 b
months from the time a misallocation is discovered.
(Source: P.A. 99-217, eff. 7-31-15; 100-23, eff. 7-6-17.)
Section 123. The Regional Transportation Authority Act is
amended by changing Section 4.03 as follows:
(70 ILCS 3615/4.03) (from Ch. 111 2/3, par. 704.03)
Sec. 4.03. Taxes.
(a) In order to carry out any of the powers or purposes of
the Authority, the Board may by ordinance adopted with the
concurrence of 12 of the then Directors, impose throughout the
metropolitan region any or all of the taxes provided in this
Section. Except as otherwise provided in this Act, taxes
imposed under this Section and civil penalties imposed incident
thereto shall be collected and enforced by the State Department
of Revenue. The Department shall have the power to administer
and enforce the taxes and to determine all rights for refunds
for erroneous payments of the taxes. Nothing in Public Act
95-708 is intended to invalidate any taxes currently imposed by
the Authority. The increased vote requirements to impose a tax
shall only apply to actions taken after January 1, 2008 (the
effective date of Public Act 95-708).
(b) The Board may impose a public transportation tax upon
all persons engaged in the metropolitan region in the business
of selling at retail motor fuel for operation of motor vehicles
upon public highways. The tax shall be at a rate not to exceed

SB3445 - 542 - LRB100 20331 HLH 35618 b
5% of the gross receipts from the sales of motor fuel in the
course of the business. As used in this Act, the term "motor
fuel" shall have the same meaning as in the Motor Fuel Tax Law.
The Board may provide for details of the tax. The provisions of
any tax shall conform, as closely as may be practicable, to the
provisions of the Municipal Retailers Occupation Tax Act,
including without limitation, conformity to penalties with
respect to the tax imposed and as to the powers of the State
Department of Revenue to promulgate and enforce rules and
regulations relating to the administration and enforcement of
the provisions of the tax imposed, except that reference in the
Act to any municipality shall refer to the Authority and the
tax shall be imposed only with regard to receipts from sales of
motor fuel in the metropolitan region, at rates as limited by
this Section.
(c) In connection with the tax imposed under paragraph (b)
of this Section the Board may impose a tax upon the privilege
of using in the metropolitan region motor fuel for the
operation of a motor vehicle upon public highways, the tax to
be at a rate not in excess of the rate of tax imposed under
paragraph (b) of this Section. The Board may provide for
details of the tax.
(d) The Board may impose a motor vehicle parking tax upon
the privilege of parking motor vehicles at off-street parking
facilities in the metropolitan region at which a fee is
charged, and may provide for reasonable classifications in and

SB3445 - 543 - LRB100 20331 HLH 35618 b
exemptions to the tax, for administration and enforcement
thereof and for civil penalties and refunds thereunder and may
provide criminal penalties thereunder, the maximum penalties
not to exceed the maximum criminal penalties provided in the
Retailers' Occupation Tax Act. The Authority may collect and
enforce the tax itself or by contract with any unit of local
government. The State Department of Revenue shall have no
responsibility for the collection and enforcement unless the
Department agrees with the Authority to undertake the
collection and enforcement. As used in this paragraph, the term
"parking facility" means a parking area or structure having
parking spaces for more than 2 vehicles at which motor vehicles
are permitted to park in return for an hourly, daily, or other
periodic fee, whether publicly or privately owned, but does not
include parking spaces on a public street, the use of which is
regulated by parking meters.
(e) The Board may impose a Regional Transportation
Authority Retailers' Occupation Tax upon all persons engaged in
the business of selling tangible personal property at retail in
the metropolitan region. In Cook County the tax rate shall be
1.25% of the gross receipts from sales of tangible personal
property taxed at the 1% rate under the Retailers' Occupation
Tax Act food for human consumption that is to be consumed off
the premises where it is sold (other than alcoholic beverages,
soft drinks and food that has been prepared for immediate
consumption) and prescription and nonprescription medicines,

SB3445 - 544 - LRB100 20331 HLH 35618 b
drugs, medical appliances and insulin, urine testing
materials, syringes and needles used by diabetics, and 1% of
the gross receipts from other taxable sales made in the course
of that business. In DuPage, Kane, Lake, McHenry, and Will
Counties, the tax rate shall be 0.75% of the gross receipts
from all taxable sales made in the course of that business. The
tax imposed under this Section and all civil penalties that may
be assessed as an incident thereof shall be collected and
enforced by the State Department of Revenue. The Department
shall have full power to administer and enforce this Section;
to collect all taxes and penalties so collected in the manner
hereinafter provided; and to determine all rights to credit
memoranda arising on account of the erroneous payment of tax or
penalty hereunder. In the administration of, and compliance
with this Section, the Department and persons who are subject
to this Section shall have the same rights, remedies,
privileges, immunities, powers and duties, and be subject to
the same conditions, restrictions, limitations, penalties,
exclusions, exemptions and definitions of terms, and employ the
same modes of procedure, as are prescribed in Sections 1, 1a,
1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all
provisions therein other than the State rate of tax), 2c, 3
(except as to the disposition of taxes and penalties
collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k,
5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the
Retailers' Occupation Tax Act and Section 3-7 of the Uniform

SB3445 - 545 - LRB100 20331 HLH 35618 b
Penalty and Interest Act, as fully as if those provisions were
set forth herein.
Persons subject to any tax imposed under the authority
granted in this Section may reimburse themselves for their
seller's tax liability hereunder by separately stating the tax
as an additional charge, which charge may be stated in
combination in a single amount with State taxes that sellers
are required to collect under the Use Tax Act, under any
bracket schedules the Department may prescribe.
Whenever the Department determines that a refund should be
made under this Section to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Regional Transportation Authority tax fund
established under paragraph (n) of this Section.
If a tax is imposed under this subsection (e), a tax shall
also be imposed under subsections (f) and (g) of this Section.
For the purpose of determining whether a tax authorized
under this Section is applicable, a retail sale by a producer
of coal or other mineral mined in Illinois, is a sale at retail
at the place where the coal or other mineral mined in Illinois
is extracted from the earth. This paragraph does not apply to
coal or other mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the

SB3445 - 546 - LRB100 20331 HLH 35618 b
sale is exempt under the Federal Constitution as a sale in
interstate or foreign commerce.
No tax shall be imposed or collected under this subsection
on the sale of a motor vehicle in this State to a resident of
another state if that motor vehicle will not be titled in this
State.
Nothing in this Section shall be construed to authorize the
Regional Transportation Authority to impose a tax upon the
privilege of engaging in any business that under the
Constitution of the United States may not be made the subject
of taxation by this State.
(f) If a tax has been imposed under paragraph (e), a
Regional Transportation Authority Service Occupation Tax shall
also be imposed upon all persons engaged, in the metropolitan
region in the business of making sales of service, who as an
incident to making the sales of service, transfer tangible
personal property within the metropolitan region, either in the
form of tangible personal property or in the form of real
estate as an incident to a sale of service. In Cook County, the
tax rate shall be: (1) 1.25% of the serviceman's cost price of
food prepared for immediate consumption and transferred
incident to a sale of service subject to the service occupation
tax by an entity licensed under the Hospital Licensing Act, the
Nursing Home Care Act, the Specialized Mental Health
Rehabilitation Act of 2013, the ID/DD Community Care Act, or
the MC/DD Act that is located in the metropolitan region; (2)

SB3445 - 547 - LRB100 20331 HLH 35618 b
1.25% of the selling price of tangible personal property taxed
at the 15 rate under the Service Occupation Tax Act food for
human consumption that is to be consumed off the premises where
it is sold (other than alcoholic beverages, soft drinks and
food that has been prepared for immediate consumption) and
prescription and nonprescription medicines, drugs, medical
appliances and insulin, urine testing materials, syringes and
needles used by diabetics; and (3) 1% of the selling price from
other taxable sales of tangible personal property transferred.
In DuPage, Kane, Lake, McHenry and Will Counties the rate shall
be 0.75% of the selling price of all tangible personal property
transferred.
The tax imposed under this paragraph and all civil
penalties that may be assessed as an incident thereof shall be
collected and enforced by the State Department of Revenue. The
Department shall have full power to administer and enforce this
paragraph; to collect all taxes and penalties due hereunder; to
dispose of taxes and penalties collected in the manner
hereinafter provided; and to determine all rights to credit
memoranda arising on account of the erroneous payment of tax or
penalty hereunder. In the administration of and compliance with
this paragraph, the Department and persons who are subject to
this paragraph shall have the same rights, remedies,
privileges, immunities, powers and duties, and be subject to
the same conditions, restrictions, limitations, penalties,
exclusions, exemptions and definitions of terms, and employ the

SB3445 - 548 - LRB100 20331 HLH 35618 b
same modes of procedure, as are prescribed in Sections 1a-1, 2,
2a, 3 through 3-50 (in respect to all provisions therein other
than the State rate of tax), 4 (except that the reference to
the State shall be to the Authority), 5, 7, 8 (except that the
jurisdiction to which the tax shall be a debt to the extent
indicated in that Section 8 shall be the Authority), 9 (except
as to the disposition of taxes and penalties collected, and
except that the returned merchandise credit for this tax may
not be taken against any State tax), 10, 11, 12 (except the
reference therein to Section 2b of the Retailers' Occupation
Tax Act), 13 (except that any reference to the State shall mean
the Authority), the first paragraph of Section 15, 16, 17, 18,
19 and 20 of the Service Occupation Tax Act and Section 3-7 of
the Uniform Penalty and Interest Act, as fully as if those
provisions were set forth herein.
Persons subject to any tax imposed under the authority
granted in this paragraph may reimburse themselves for their
serviceman's tax liability hereunder by separately stating the
tax as an additional charge, that charge may be stated in
combination in a single amount with State tax that servicemen
are authorized to collect under the Service Use Tax Act, under
any bracket schedules the Department may prescribe.
Whenever the Department determines that a refund should be
made under this paragraph to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the

SB3445 - 549 - LRB100 20331 HLH 35618 b
amount specified, and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Regional Transportation Authority tax fund
established under paragraph (n) of this Section.
Nothing in this paragraph shall be construed to authorize
the Authority to impose a tax upon the privilege of engaging in
any business that under the Constitution of the United States
may not be made the subject of taxation by the State.
(g) If a tax has been imposed under paragraph (e), a tax
shall also be imposed upon the privilege of using in the
metropolitan region, any item of tangible personal property
that is purchased outside the metropolitan region at retail
from a retailer, and that is titled or registered with an
agency of this State's government. In Cook County the tax rate
shall be 1% of the selling price of the tangible personal
property, as "selling price" is defined in the Use Tax Act. In
DuPage, Kane, Lake, McHenry and Will counties the tax rate
shall be 0.75% of the selling price of the tangible personal
property, as "selling price" is defined in the Use Tax Act. The
tax shall be collected from persons whose Illinois address for
titling or registration purposes is given as being in the
metropolitan region. The tax shall be collected by the
Department of Revenue for the Regional Transportation
Authority. The tax must be paid to the State, or an exemption
determination must be obtained from the Department of Revenue,
before the title or certificate of registration for the

SB3445 - 550 - LRB100 20331 HLH 35618 b
property may be issued. The tax or proof of exemption may be
transmitted to the Department by way of the State agency with
which, or the State officer with whom, the tangible personal
property must be titled or registered if the Department and the
State agency or State officer determine that this procedure
will expedite the processing of applications for title or
registration.
The Department shall have full power to administer and
enforce this paragraph; to collect all taxes, penalties and
interest due hereunder; to dispose of taxes, penalties and
interest collected in the manner hereinafter provided; and to
determine all rights to credit memoranda or refunds arising on
account of the erroneous payment of tax, penalty or interest
hereunder. In the administration of and compliance with this
paragraph, the Department and persons who are subject to this
paragraph shall have the same rights, remedies, privileges,
immunities, powers and duties, and be subject to the same
conditions, restrictions, limitations, penalties, exclusions,
exemptions and definitions of terms and employ the same modes
of procedure, as are prescribed in Sections 2 (except the
definition of "retailer maintaining a place of business in this
State"), 3 through 3-80 (except provisions pertaining to the
State rate of tax, and except provisions concerning collection
or refunding of the tax by retailers), 4, 11, 12, 12a, 14, 15,
19 (except the portions pertaining to claims by retailers and
except the last paragraph concerning refunds), 20, 21 and 22 of

SB3445 - 551 - LRB100 20331 HLH 35618 b
the Use Tax Act, and are not inconsistent with this paragraph,
as fully as if those provisions were set forth herein.
Whenever the Department determines that a refund should be
made under this paragraph to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named in the notification
from the Department. The refund shall be paid by the State
Treasurer out of the Regional Transportation Authority tax fund
established under paragraph (n) of this Section.
(h) The Authority may impose a replacement vehicle tax of
$50 on any passenger car as defined in Section 1-157 of the
Illinois Vehicle Code purchased within the metropolitan region
by or on behalf of an insurance company to replace a passenger
car of an insured person in settlement of a total loss claim.
The tax imposed may not become effective before the first day
of the month following the passage of the ordinance imposing
the tax and receipt of a certified copy of the ordinance by the
Department of Revenue. The Department of Revenue shall collect
the tax for the Authority in accordance with Sections 3-2002
and 3-2003 of the Illinois Vehicle Code.
The Department shall immediately pay over to the State
Treasurer, ex officio, as trustee, all taxes collected
hereunder.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department

SB3445 - 552 - LRB100 20331 HLH 35618 b
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected under this Section
during the second preceding calendar month for sales within a
STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the
Department shall prepare and certify to the Comptroller the
disbursement of stated sums of money to the Authority. The
amount to be paid to the Authority shall be the amount
collected hereunder during the second preceding calendar month
by the Department, less any amount determined by the Department
to be necessary for the payment of refunds, and less any
amounts that are transferred to the STAR Bonds Revenue Fund.
Within 10 days after receipt by the Comptroller of the
disbursement certification to the Authority provided for in
this Section to be given to the Comptroller by the Department,
the Comptroller shall cause the orders to be drawn for that
amount in accordance with the directions contained in the
certification.
(i) The Board may not impose any other taxes except as it
may from time to time be authorized by law to impose.
(j) A certificate of registration issued by the State
Department of Revenue to a retailer under the Retailers'
Occupation Tax Act or under the Service Occupation Tax Act

SB3445 - 553 - LRB100 20331 HLH 35618 b
shall permit the registrant to engage in a business that is
taxed under the tax imposed under paragraphs (b), (e), (f) or
(g) of this Section and no additional registration shall be
required under the tax. A certificate issued under the Use Tax
Act or the Service Use Tax Act shall be applicable with regard
to any tax imposed under paragraph (c) of this Section.
(k) The provisions of any tax imposed under paragraph (c)
of this Section shall conform as closely as may be practicable
to the provisions of the Use Tax Act, including without
limitation conformity as to penalties with respect to the tax
imposed and as to the powers of the State Department of Revenue
to promulgate and enforce rules and regulations relating to the
administration and enforcement of the provisions of the tax
imposed. The taxes shall be imposed only on use within the
metropolitan region and at rates as provided in the paragraph.
(l) The Board in imposing any tax as provided in paragraphs
(b) and (c) of this Section, shall, after seeking the advice of
the State Department of Revenue, provide means for retailers,
users or purchasers of motor fuel for purposes other than those
with regard to which the taxes may be imposed as provided in
those paragraphs to receive refunds of taxes improperly paid,
which provisions may be at variance with the refund provisions
as applicable under the Municipal Retailers Occupation Tax Act.
The State Department of Revenue may provide for certificates of
registration for users or purchasers of motor fuel for purposes
other than those with regard to which taxes may be imposed as

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provided in paragraphs (b) and (c) of this Section to
facilitate the reporting and nontaxability of the exempt sales
or uses.
(m) Any ordinance imposing or discontinuing any tax under
this Section shall be adopted and a certified copy thereof
filed with the Department on or before June 1, whereupon the
Department of Revenue shall proceed to administer and enforce
this Section on behalf of the Regional Transportation Authority
as of September 1 next following such adoption and filing.
Beginning January 1, 1992, an ordinance or resolution imposing
or discontinuing the tax hereunder shall be adopted and a
certified copy thereof filed with the Department on or before
the first day of July, whereupon the Department shall proceed
to administer and enforce this Section as of the first day of
October next following such adoption and filing. Beginning
January 1, 1993, an ordinance or resolution imposing,
increasing, decreasing, or discontinuing the tax hereunder
shall be adopted and a certified copy thereof filed with the
Department, whereupon the Department shall proceed to
administer and enforce this Section as of the first day of the
first month to occur not less than 60 days following such
adoption and filing. Any ordinance or resolution of the
Authority imposing a tax under this Section and in effect on
August 1, 2007 shall remain in full force and effect and shall
be administered by the Department of Revenue under the terms
and conditions and rates of tax established by such ordinance

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or resolution until the Department begins administering and
enforcing an increased tax under this Section as authorized by
Public Act 95-708. The tax rates authorized by Public Act
95-708 are effective only if imposed by ordinance of the
Authority.
(n) Except as otherwise provided in this subsection (n),
the State Department of Revenue shall, upon collecting any
taxes as provided in this Section, pay the taxes over to the
State Treasurer as trustee for the Authority. The taxes shall
be held in a trust fund outside the State Treasury. On or
before the 25th day of each calendar month, the State
Department of Revenue shall prepare and certify to the
Comptroller of the State of Illinois and to the Authority (i)
the amount of taxes collected in each County other than Cook
County in the metropolitan region, (ii) the amount of taxes
collected within the City of Chicago, and (iii) the amount
collected in that portion of Cook County outside of Chicago,
each amount less the amount necessary for the payment of
refunds to taxpayers located in those areas described in items
(i), (ii), and (iii), and less 2% of the remainder, which shall
be transferred from the trust fund into the Tax Compliance and
Administration Fund. The Department, at the time of each
monthly disbursement to the Authority, shall prepare and
certify to the State Comptroller the amount to be transferred
into the Tax Compliance and Administration Fund under this
subsection. Within 10 days after receipt by the Comptroller of

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

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Section 2.01 of this Act shall not affect the validity of any
tax imposed by the Authority otherwise in conformity with law.
(p) At no time shall a public transportation tax or motor
vehicle parking tax authorized under paragraphs (b), (c) and
(d) of this Section be in effect at the same time as any
retailers' occupation, use or service occupation tax
authorized under paragraphs (e), (f) and (g) of this Section is
in effect.
Any taxes imposed under the authority provided in
paragraphs (b), (c) and (d) shall remain in effect only until
the time as any tax authorized by paragraphs (e), (f) or (g) of
this Section are imposed and becomes effective. Once any tax
authorized by paragraphs (e), (f) or (g) is imposed the Board
may not reimpose taxes as authorized in paragraphs (b), (c) and
(d) of the Section unless any tax authorized by paragraphs (e),
(f) or (g) of this Section becomes ineffective by means other
than an ordinance of the Board.
(q) Any existing rights, remedies and obligations
(including enforcement by the Regional Transportation
Authority) arising under any tax imposed under paragraphs (b),
(c) or (d) of this Section shall not be affected by the
imposition of a tax under paragraphs (e), (f) or (g) of this
Section.
(Source: P.A. 99-180, eff. 7-29-15; 99-217, eff. 7-31-15;
99-642, eff. 7-28-16; 100-23, eff. 7-6-17.)

SB3445 - 558 - LRB100 20331 HLH 35618 b
Section 125. The Water Commission Act of 1985 is amended by
changing Section 4 as follows:
(70 ILCS 3720/4) (from Ch. 111 2/3, par. 254)
Sec. 4. Taxes.
(a) The board of commissioners of any county water
commission may, by ordinance, impose throughout the territory
of the commission any or all of the taxes provided in this
Section for its corporate purposes. However, no county water
commission may impose any such tax unless the commission
certifies the proposition of imposing the tax to the proper
election officials, who shall submit the proposition to the
voters residing in the territory at an election in accordance
with the general election law, and the proposition has been
approved by a majority of those voting on the proposition.
The proposition shall be in the form provided in Section 5
or shall be substantially in the following form:
-------------------------------------------------------------
Shall the (insert corporate
name of county water commission) YES
impose (state type of tax or ------------------------
taxes to be imposed) at the NO
rate of 1/4%?
-------------------------------------------------------------
Taxes imposed under this Section and civil penalties
imposed incident thereto shall be collected and enforced by the

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State Department of Revenue. The Department shall have the
power to administer and enforce the taxes and to determine all
rights for refunds for erroneous payments of the taxes.
(b) The board of commissioners may impose a County Water
Commission Retailers' Occupation Tax upon all persons engaged
in the business of selling tangible personal property at retail
in the territory of the commission at a rate of 1/4% of the
gross receipts from the sales made in the course of such
business within the territory. The tax imposed under this
paragraph and all civil penalties that may be assessed as an
incident thereof shall be collected and enforced by the State
Department of Revenue. The Department shall have full power to
administer and enforce this paragraph; to collect all taxes and
penalties due hereunder; to dispose of taxes and penalties so
collected in the manner hereinafter provided; and to determine
all rights to credit memoranda arising on account of the
erroneous payment of tax or penalty hereunder. In the
administration of, and compliance with, this paragraph, the
Department and persons who are subject to this paragraph shall
have the same rights, remedies, privileges, immunities, powers
and duties, and be subject to the same conditions,
restrictions, limitations, penalties, exclusions, exemptions
and definitions of terms, and employ the same modes of
procedure, as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d,
1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions
therein other than the State rate of tax except that tangible

SB3445 - 560 - LRB100 20331 HLH 35618 b
personal property taxed at the 1% rate under the Retailers'
Occupation Tax Act food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, soft drinks, and food that has been
prepared for immediate consumption) and prescription and
nonprescription medicine, drugs, medical appliances and
insulin, urine testing materials, syringes, and needles used by
diabetics, for human use, shall not be subject to tax
hereunder), 2c, 3 (except as to the disposition of taxes and
penalties collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i,
5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12, and 13 of
the Retailers' Occupation Tax Act and Section 3-7 of the
Uniform Penalty and Interest Act, as fully as if those
provisions were set forth herein.
Persons subject to any tax imposed under the authority
granted in this paragraph may reimburse themselves for their
seller's tax liability hereunder by separately stating the tax
as an additional charge, which charge may be stated in
combination, in a single amount, with State taxes that sellers
are required to collect under the Use Tax Act and under
subsection (e) of Section 4.03 of the Regional Transportation
Authority Act, in accordance with such bracket schedules as the
Department may prescribe.
Whenever the Department determines that a refund should be
made under this paragraph to a claimant instead of issuing a
credit memorandum, the Department shall notify the State

SB3445 - 561 - LRB100 20331 HLH 35618 b
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of a county water commission tax fund established
under subsection paragraph (g) of this Section.
For the purpose of determining whether a tax authorized
under this paragraph is applicable, a retail sale by a producer
of coal or other mineral mined in Illinois is a sale at retail
at the place where the coal or other mineral mined in Illinois
is extracted from the earth. This paragraph does not apply to
coal or other mineral when it is delivered or shipped by the
seller to the purchaser at a point outside Illinois so that the
sale is exempt under the Federal Constitution as a sale in
interstate or foreign commerce.
If a tax is imposed under this subsection (b), a tax shall
also be imposed under subsections (c) and (d) of this Section.
No tax shall be imposed or collected under this subsection
on the sale of a motor vehicle in this State to a resident of
another state if that motor vehicle will not be titled in this
State.
Nothing in this paragraph shall be construed to authorize a
county water commission to impose a tax upon the privilege of
engaging in any business which under the Constitution of the
United States may not be made the subject of taxation by this
State.
(c) If a tax has been imposed under subsection (b), a

SB3445 - 562 - LRB100 20331 HLH 35618 b
County Water Commission Service Occupation Tax shall also be
imposed upon all persons engaged, in the territory of the
commission, in the business of making sales of service, who, as
an incident to making the sales of service, transfer tangible
personal property within the territory. The tax rate shall be
1/4% of the selling price of tangible personal property so
transferred within the territory. The tax imposed under this
paragraph and all civil penalties that may be assessed as an
incident thereof shall be collected and enforced by the State
Department of Revenue. The Department shall have full power to
administer and enforce this paragraph; to collect all taxes and
penalties due hereunder; to dispose of taxes and penalties so
collected in the manner hereinafter provided; and to determine
all rights to credit memoranda arising on account of the
erroneous payment of tax or penalty hereunder. In the
administration of, and compliance with, this paragraph, the
Department and persons who are subject to this paragraph shall
have the same rights, remedies, privileges, immunities, powers
and duties, and be subject to the same conditions,
restrictions, limitations, penalties, exclusions, exemptions
and definitions of terms, and employ the same modes of
procedure, as are prescribed in Sections 1a-1, 2 (except that
the reference to State in the definition of supplier
maintaining a place of business in this State shall mean the
territory of the commission), 2a, 3 through 3-50 (in respect to
all provisions therein other than the State rate of tax except

SB3445 - 563 - LRB100 20331 HLH 35618 b
that tangible personal property taxed at the 1% rate under the
Service Occupation Tax Act food for human consumption that is
to be consumed off the premises where it is sold (other than
alcoholic beverages, soft drinks, and food that has been
prepared for immediate consumption) and prescription and
nonprescription medicines, drugs, medical appliances and
insulin, urine testing materials, syringes, and needles used by
diabetics, for human use, shall not be subject to tax
hereunder), 4 (except that the reference to the State shall be
to the territory of the commission), 5, 7, 8 (except that the
jurisdiction to which the tax shall be a debt to the extent
indicated in that Section 8 shall be the commission), 9 (except
as to the disposition of taxes and penalties collected and
except that the returned merchandise credit for this tax may
not be taken against any State tax), 10, 11, 12 (except the
reference therein to Section 2b of the Retailers' Occupation
Tax Act), 13 (except that any reference to the State shall mean
the territory of the commission), the first paragraph of
Section 15, 15.5, 16, 17, 18, 19, and 20 of the Service
Occupation Tax Act as fully as if those provisions were set
forth herein.
Persons subject to any tax imposed under the authority
granted in this paragraph may reimburse themselves for their
serviceman's tax liability hereunder by separately stating the
tax as an additional charge, which charge may be stated in
combination, in a single amount, with State tax that servicemen

SB3445 - 564 - LRB100 20331 HLH 35618 b
are authorized to collect under the Service Use Tax Act, and
any tax for which servicemen may be liable under subsection (f)
of Section 4.03 of the Regional Transportation Authority Act,
in accordance with such bracket schedules as the Department may
prescribe.
Whenever the Department determines that a refund should be
made under this paragraph to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the warrant to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of a county water commission tax fund established
under subsection paragraph (g) of this Section.
Nothing in this paragraph shall be construed to authorize a
county water commission to impose a tax upon the privilege of
engaging in any business which under the Constitution of the
United States may not be made the subject of taxation by the
State.
(d) If a tax has been imposed under subsection (b), a tax
shall also be imposed upon the privilege of using, in the
territory of the commission, any item of tangible personal
property that is purchased outside the territory at retail from
a retailer, and that is titled or registered with an agency of
this State's government, at a rate of 1/4% of the selling price
of the tangible personal property within the territory, as
"selling price" is defined in the Use Tax Act. The tax shall be

SB3445 - 565 - LRB100 20331 HLH 35618 b
collected from persons whose Illinois address for titling or
registration purposes is given as being in the territory. The
tax shall be collected by the Department of Revenue for a
county water commission. The tax must be paid to the State, or
an exemption determination must be obtained from the Department
of Revenue, before the title or certificate of registration for
the property may be issued. The tax or proof of exemption may
be transmitted to the Department by way of the State agency
with which, or the State officer with whom, the tangible
personal property must be titled or registered if the
Department and the State agency or State officer determine that
this procedure will expedite the processing of applications for
title or registration.
The Department shall have full power to administer and
enforce this paragraph; to collect all taxes, penalties, and
interest due hereunder; to dispose of taxes, penalties, and
interest so collected in the manner hereinafter provided; and
to determine all rights to credit memoranda or refunds arising
on account of the erroneous payment of tax, penalty, or
interest hereunder. In the administration of, and compliance
with this paragraph, the Department and persons who are subject
to this paragraph shall have the same rights, remedies,
privileges, immunities, powers, and duties, and be subject to
the same conditions, restrictions, limitations, penalties,
exclusions, exemptions, and definitions of terms and employ the
same modes of procedure, as are prescribed in Sections 2

SB3445 - 566 - LRB100 20331 HLH 35618 b
(except the definition of "retailer maintaining a place of
business in this State"), 3 through 3-80 (except provisions
pertaining to the State rate of tax, and except provisions
concerning collection or refunding of the tax by retailers, and
except that food for human consumption that is to be consumed
off the premises where it is sold (other than alcoholic
beverages, soft drinks, and food that has been prepared for
immediate consumption) and prescription and nonprescription
medicines, drugs, medical appliances and insulin, urine
testing materials, syringes, and needles used by diabetics, for
human use, shall not be subject to tax hereunder), 4, 11, 12,
12a, 14, 15, 19 (except the portions pertaining to claims by
retailers and except the last paragraph concerning refunds),
20, 21, and 22 of the Use Tax Act and Section 3-7 of the Uniform
Penalty and Interest Act that are not inconsistent with this
paragraph, as fully as if those provisions were set forth
herein.
Whenever the Department determines that a refund should be
made under this paragraph to a claimant instead of issuing a
credit memorandum, the Department shall notify the State
Comptroller, who shall cause the order to be drawn for the
amount specified, and to the person named, in the notification
from the Department. The refund shall be paid by the State
Treasurer out of a county water commission tax fund established
under subsection paragraph (g) of this Section.
(e) A certificate of registration issued by the State

SB3445 - 567 - LRB100 20331 HLH 35618 b
Department of Revenue to a retailer under the Retailers'
Occupation Tax Act or under the Service Occupation Tax Act
shall permit the registrant to engage in a business that is
taxed under the tax imposed under subsection paragraphs (b),
(c), or (d) of this Section and no additional registration
shall be required under the tax. A certificate issued under the
Use Tax Act or the Service Use Tax Act shall be applicable with
regard to any tax imposed under subsection paragraph (c) of
this Section.
(f) Any ordinance imposing or discontinuing any tax under
this Section shall be adopted and a certified copy thereof
filed with the Department on or before June 1, whereupon the
Department of Revenue shall proceed to administer and enforce
this Section on behalf of the county water commission as of
September 1 next following the adoption and filing. Beginning
January 1, 1992, an ordinance or resolution imposing or
discontinuing the tax hereunder shall be adopted and a
certified copy thereof filed with the Department on or before
the first day of July, whereupon the Department shall proceed
to administer and enforce this Section as of the first day of
October next following such adoption and filing. Beginning
January 1, 1993, an ordinance or resolution imposing or
discontinuing the tax hereunder shall be adopted and a
certified copy thereof filed with the Department on or before
the first day of October, whereupon the Department shall
proceed to administer and enforce this Section as of the first

SB3445 - 568 - LRB100 20331 HLH 35618 b
day of January next following such adoption and filing.
(g) The State Department of Revenue shall, upon collecting
any taxes as provided in this Section, pay the taxes over to
the State Treasurer as trustee for the commission. The taxes
shall be held in a trust fund outside the State Treasury.
As soon as possible after the first day of each month,
beginning January 1, 2011, upon certification of the Department
of Revenue, the Comptroller shall order transferred, and the
Treasurer shall transfer, to the STAR Bonds Revenue Fund the
local sales tax increment, as defined in the Innovation
Development and Economy Act, collected under this Section
during the second preceding calendar month for sales within a
STAR bond district.
After the monthly transfer to the STAR Bonds Revenue Fund,
on or before the 25th day of each calendar month, the State
Department of Revenue shall prepare and certify to the
Comptroller of the State of Illinois the amount to be paid to
the commission, which shall be the amount (not including credit
memoranda) collected under this Section during the second
preceding calendar month by the Department plus an amount the
Department determines is necessary to offset any amounts that
were erroneously paid to a different taxing body, and not
including any amount equal to the amount of refunds made during
the second preceding calendar month by the Department on behalf
of the commission, and not including any amount that the
Department determines is necessary to offset any amounts that

SB3445 - 569 - LRB100 20331 HLH 35618 b
were payable to a different taxing body but were erroneously
paid to the commission, and less any amounts that are
transferred to the STAR Bonds Revenue Fund, less 2% of the
remainder, which shall be transferred into the Tax Compliance
and Administration Fund. The Department, at the time of each
monthly disbursement to the commission, shall prepare and
certify to the State Comptroller the amount to be transferred
into the Tax Compliance and Administration Fund under this
subsection. Within 10 days after receipt by the Comptroller of
the certification of the amount to be paid to the commission
and the Tax Compliance and Administration Fund, the Comptroller
shall cause an order to be drawn for the payment for the amount
in accordance with the direction in the certification.
(h) Beginning June 1, 2016, any tax imposed pursuant to
this Section may no longer be imposed or collected, unless a
continuation of the tax is approved by the voters at a
referendum as set forth in this Section.
(Source: P.A. 99-217, eff. 7-31-15; 99-642, eff. 7-28-16;
100-23, eff. 7-6-17; revised 10-3-17.)
Section 130. The Illinois Horse Racing Act of 1975 is
amended by changing Sections 27 and 28.1 as follows:
(230 ILCS 5/27) (from Ch. 8, par. 37-27)
Sec. 27. (a) In addition to the organization license fee
provided by this Act, until January 1, 2000, a graduated

SB3445 - 570 - LRB100 20331 HLH 35618 b
privilege tax is hereby imposed for conducting the pari-mutuel
system of wagering permitted under this Act. Until January 1,
2000, except as provided in subsection (g) of Section 27 of
this Act, all of the breakage of each racing day held by any
licensee in the State shall be paid to the State. Until January
1, 2000, such daily graduated privilege tax shall be paid by
the licensee from the amount permitted to be retained under
this Act. Until January 1, 2000, each day's graduated privilege
tax, breakage, and Horse Racing Tax Allocation funds shall be
remitted to the Department of Revenue within 48 hours after the
close of the racing day upon which it is assessed or within
such other time as the Board prescribes. The privilege tax
hereby imposed, until January 1, 2000, shall be a flat tax at
the rate of 2% of the daily pari-mutuel handle except as
provided in Section 27.1.
In addition, every organization licensee, except as
provided in Section 27.1 of this Act, which conducts multiple
wagering shall pay, until January 1, 2000, as a privilege tax
on multiple wagers an amount equal to 1.25% of all moneys
wagered each day on such multiple wagers, plus an additional
amount equal to 3.5% of the amount wagered each day on any
other multiple wager which involves a single betting interest
on 3 or more horses. The licensee shall remit the amount of
such taxes to the Department of Revenue within 48 hours after
the close of the racing day on which it is assessed or within
such other time as the Board prescribes.

SB3445 - 571 - LRB100 20331 HLH 35618 b
This subsection (a) shall be inoperative and of no force
and effect on and after January 1, 2000.
(a-5) Beginning on January 1, 2000, a flat pari-mutuel tax
at the rate of 1.5% of the daily pari-mutuel handle is imposed
at all pari-mutuel wagering facilities and on advance deposit
wagering from a location other than a wagering facility, except
as otherwise provided for in this subsection (a-5). In addition
to the pari-mutuel tax imposed on advance deposit wagering
pursuant to this subsection (a-5), beginning on August 24, 2012
(the effective date of Public Act 97-1060) and through December
31, 2018, an additional pari-mutuel tax at the rate of 0.25%
shall be imposed on advance deposit wagering. Until August 25,
2012, the additional 0.25% pari-mutuel tax imposed on advance
deposit wagering by Public Act 96-972 shall be deposited into
the Quarter Horse Purse Fund, which shall be created as a
non-appropriated trust fund administered by the Board for
grants to thoroughbred organization licensees for payment of
purses for quarter horse races conducted by the organization
licensee. Beginning on August 26, 2012, the additional 0.25%
pari-mutuel tax imposed on advance deposit wagering shall be
deposited into the Standardbred Purse Fund, which shall be
created as a non-appropriated trust fund administered by the
Board, for grants to the standardbred organization licensees
for payment of purses for standardbred horse races conducted by
the organization licensee. Thoroughbred organization licensees
may petition the Board to conduct quarter horse racing and

SB3445 - 572 - LRB100 20331 HLH 35618 b
receive purse grants from the Quarter Horse Purse Fund. The
Board shall have complete discretion in distributing the
Quarter Horse Purse Fund to the petitioning organization
licensees. Beginning on July 26, 2010 (the effective date of
Public Act 96-1287), a pari-mutuel tax at the rate of 0.75% of
the daily pari-mutuel handle is imposed at a pari-mutuel
facility whose license is derived from a track located in a
county that borders the Mississippi River and conducted live
racing in the previous year. Until the effective date of this
amendatory Act of the 100th General Assembly, the The
pari-mutuel tax imposed by this subsection (a-5) shall be
remitted to the Department of Revenue within 48 hours after the
close of the racing day upon which it is assessed or within
such other time as the Board prescribes. Beginning on the
effective date of this amendatory Act of the 100th General
Assembly, the pari-mutuel tax imposed by this subsection (a-5)
shall be remitted to the Board within 48 hours after the close
of the racing day upon which it is assessed or within such
other time as the Board prescribes.
(b) On or before December 31, 1999, in the event that any
organization licensee conducts 2 separate programs of races on
any day, each such program shall be considered a separate
racing day for purposes of determining the daily handle and
computing the privilege tax on such daily handle as provided in
subsection (a) of this Section.
(c) Licensees shall at all times keep accurate books and

SB3445 - 573 - LRB100 20331 HLH 35618 b
records of all monies wagered on each day of a race meeting and
of the taxes paid to the Department of Revenue under the
provisions of this Section. The Board or its duly authorized
representative or representatives shall at all reasonable
times have access to such records for the purpose of examining
and checking the same and ascertaining whether the proper
amount of taxes is being paid as provided. The Board shall
require verified reports and a statement of the total of all
monies wagered daily at each wagering facility upon which the
taxes are assessed and may prescribe forms upon which such
reports and statement shall be made.
(d) Any licensee failing or refusing to pay the amount of
any tax due under this Section shall be guilty of a business
offense and upon conviction shall be fined not more than $5,000
in addition to the amount found due as tax under this Section.
Each day's violation shall constitute a separate offense. All
fines paid into Court by a licensee hereunder shall be
transmitted and paid over by the Clerk of the Court to the
Board.
(e) No other license fee, privilege tax, excise tax, or
racing fee, except as provided in this Act, shall be assessed
or collected from any such licensee by the State.
(f) No other license fee, privilege tax, excise tax or
racing fee shall be assessed or collected from any such
licensee by units of local government except as provided in
paragraph 10.1 of subsection (h) and subsection (f) of Section

SB3445 - 574 - LRB100 20331 HLH 35618 b
26 of this Act. However, any municipality that has a Board
licensed horse race meeting at a race track wholly within its
corporate boundaries or a township that has a Board licensed
horse race meeting at a race track wholly within the
unincorporated area of the township may charge a local
amusement tax not to exceed 10¢ per admission to such horse
race meeting by the enactment of an ordinance. However, any
municipality or county that has a Board licensed inter-track
wagering location facility wholly within its corporate
boundaries may each impose an admission fee not to exceed $1.00
per admission to such inter-track wagering location facility,
so that a total of not more than $2.00 per admission may be
imposed. Except as provided in subparagraph (g) of Section 27
of this Act, the inter-track wagering location licensee shall
collect any and all such fees and within 48 hours remit the
fees to the Board, which shall, pursuant to rule, cause the
fees to be distributed to the county or municipality.
(g) Notwithstanding any provision in this Act to the
contrary, if in any calendar year the total taxes and fees
required to be collected from licensees and distributed under
this Act to all State and local governmental authorities
exceeds the amount of such taxes and fees distributed to each
State and local governmental authority to which each State and
local governmental authority was entitled under this Act for
calendar year 1994, then the first $11 million of that excess
amount shall be allocated at the earliest possible date for

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distribution as purse money for the succeeding calendar year.
Upon reaching the 1994 level, and until the excess amount of
taxes and fees exceeds $11 million, the Board shall direct all
licensees to cease paying the subject taxes and fees and the
Board shall direct all licensees to allocate any such excess
amount for purses as follows:
(i) the excess amount shall be initially divided
between thoroughbred and standardbred purses based on the
thoroughbred's and standardbred's respective percentages
of total Illinois live wagering in calendar year 1994;
(ii) each thoroughbred and standardbred organization
licensee issued an organization licensee in that
succeeding allocation year shall be allocated an amount
equal to the product of its percentage of total Illinois
live thoroughbred or standardbred wagering in calendar
year 1994 (the total to be determined based on the sum of
1994 on-track wagering for all organization licensees
issued organization licenses in both the allocation year
and the preceding year) multiplied by the total amount
allocated for standardbred or thoroughbred purses,
provided that the first $1,500,000 of the amount allocated
to standardbred purses under item (i) shall be allocated to
the Department of Agriculture to be expended with the
assistance and advice of the Illinois Standardbred
Breeders Funds Advisory Board for the purposes listed in
subsection (g) of Section 31 of this Act, before the amount

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allocated to standardbred purses under item (i) is
allocated to standardbred organization licensees in the
succeeding allocation year.
To the extent the excess amount of taxes and fees to be
collected and distributed to State and local governmental
authorities exceeds $11 million, that excess amount shall be
collected and distributed to State and local authorities as
provided for under this Act.
(Source: P.A. 98-18, eff. 6-7-13; 98-624, eff. 1-29-14; 99-756,
eff. 8-12-16.)
(230 ILCS 5/28.1)
Sec. 28.1. Payments.
(a) Beginning on January 1, 2000, moneys collected by the
Department of Revenue and the Racing Board pursuant to Section
26 or Section 27 of this Act shall be deposited into the Horse
Racing Fund, which is hereby created as a special fund in the
State Treasury.
(b) Appropriations, as approved by the General Assembly,
may be made from the Horse Racing Fund to the Board to pay the
salaries of the Board members, secretary, stewards, directors
of mutuels, veterinarians, representatives, accountants,
clerks, stenographers, inspectors and other employees of the
Board, and all expenses of the Board incident to the
administration of this Act, including, but not limited to, all
expenses and salaries incident to the taking of saliva and

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urine samples in accordance with the rules and regulations of
the Board.
(c) (Blank).
(d) Beginning January 1, 2000, payments to all programs in
existence on the effective date of this amendatory Act of 1999
that are identified in Sections 26(c), 26(f), 26(h)(11)(C), and
28, subsections (a), (b), (c), (d), (e), (f), (g), and (h) of
Section 30, and subsections (a), (b), (c), (d), (e), (f), (g),
and (h) of Section 31 shall be made from the General Revenue
Fund at the funding levels determined by amounts paid under
this Act in calendar year 1998. Beginning on the effective date
of this amendatory Act of the 93rd General Assembly, payments
to the Peoria Park District shall be made from the General
Revenue Fund at the funding level determined by amounts paid to
that park district for museum purposes under this Act in
calendar year 1994.
If an inter-track wagering location licensee's facility
changes its location, then the payments associated with that
facility under this subsection (d) for museum purposes shall be
paid to the park district in the area where the facility
relocates, and the payments shall be used for museum purposes.
If the facility does not relocate to a park district, then the
payments shall be paid to the taxing district that is
responsible for park or museum expenditures.
(e) Beginning July 1, 2006, the payment authorized under
subsection (d) to museums and aquariums located in park

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districts of over 500,000 population shall be paid to museums,
aquariums, and zoos in amounts determined by Museums in the
Park, an association of museums, aquariums, and zoos located on
Chicago Park District property.
(f) Beginning July 1, 2007, the Children's Discovery Museum
in Normal, Illinois shall receive payments from the General
Revenue Fund at the funding level determined by the amounts
paid to the Miller Park Zoo in Bloomington, Illinois under this
Section in calendar year 2006.
(Source: P.A. 98-624, eff. 1-29-14.)
Section 135. The Illinois Pull Tabs and Jar Games Act is
amended by changing Section 5 as follows:
(230 ILCS 20/5) (from Ch. 120, par. 1055)
Sec. 5. Payments; returns. There shall be paid to the
Department of Revenue 5% of the gross proceeds of any pull tabs
and jar games conducted under this Act. Such payments shall be
made 4 times per year, between the first and the 20th day of
April, July, October and January. Accompanying each payment
shall be a return, on forms prescribed by the Department of
Revenue. Failure to submit either the payment or the return
within the specified time shall result in suspension or
revocation of the license. Tax returns filed pursuant to this
Act shall not be confidential and shall be available for public
inspection. All payments made to the Department of Revenue

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

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in such incorporated Sections of the Retailers' Occupation Tax
Act to retailers, sellers or persons engaged in the business of
selling tangible personal property means persons engaged in
conducting pull tabs and jar games and references in such
incorporated Sections of the Retailers' Occupation Tax Act to
sales of tangible personal property mean the conducting of pull
tabs and jar games and the making of charges for participating
in such drawings.
If any payment provided for in this Section exceeds the
taxpayer's liabilities under this Act, as shown on an original
return, the taxpayer may credit such excess payment against
liability subsequently to be remitted to the Department under
this Act, in accordance with reasonable rules adopted by the
Department.
(Source: P.A. 95-228, eff. 8-16-07.)
Section 140. The Bingo License and Tax Act is amended by
changing Section 3 as follows:
(230 ILCS 25/3) (from Ch. 120, par. 1103)
Sec. 3. Payments; returns. There shall be paid to the
Department of Revenue, 5% of the gross proceeds of any game of
bingo conducted under the provision of this Act. Such payments
shall be made 4 times per year, between the first and the 20th
day of April, July, October and January. Accompanying each
payment shall be a return, on forms prescribed by the

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Department of Revenue. Failure to submit either the payment or
the return within the specified time may result in suspension
or revocation of the license. Tax returns filed pursuant to
this Act shall not be confidential and shall be available for
public inspection.
If any payment provided for in this Section exceeds the
taxpayer's liabilities under this Act, as shown on an original
return, the taxpayer may credit such excess payment against
liability subsequently to be remitted to the Department under
this Act, in accordance with reasonable rules adopted by the
Department.
All payments made to the Department of Revenue under this
Section shall be deposited as follows:
(1) 50% shall be deposited in the Mental Health Fund;
and
(2) 50% shall be deposited in the Common School Fund.
The provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,
5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, 10, 11 and 12 of the Retailers'
Occupation Tax Act and Section 3-7 of the Uniform Penalty and
Interest Act, which are not inconsistent with this Act, shall
apply, as far as practicable, to the subject matter of this Act
to the same extent as if such provisions were included in this
Act. For the purposes of this Act, references in such
incorporated Sections of the Retailers' Occupation Tax Act to
retailers, sellers or persons engaged in the business of
selling tangible personal property means persons engaged in

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conducting bingo games, and references in such incorporated
Sections of the Retailers' Occupation Tax Act to sales of
tangible personal property mean the conducting of bingo games
and the making of charges for playing such games.
(Source: P.A. 95-228, eff. 8-16-07.)
Section 145. The Charitable Games Act is amended by
changing Section 9 as follows:
(230 ILCS 30/9) (from Ch. 120, par. 1129)
Sec. 9. Payments; returns. There shall be paid to the
Department of Revenue, 5% of the net proceeds of charitable
games conducted under the provisions of this Act. Such payments
shall be made within 30 days after the completion of the games.
Accompanying each payment shall be a return, on forms
prescribed by the Department of Revenue. Failure to submit
either the payment or the return within the specified time may
result in suspension or revocation of the license. Tax returns
filed pursuant to this Act shall not be confidential and shall
be available for public inspection.
The provisions of Sections 4, 5, 5a, 5b, 5c, 5d, 5e, 5f,
5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, 10, 11 and 12 of the Retailers'
Occupation Tax Act, and Section 3-7 of the Uniform Penalty and
Interest Act, which are not inconsistent with this Act shall
apply, as far as practicable, to the subject matter of this Act
to the same extent as if such provisions were included in this

SB3445 - 583 - LRB100 20331 HLH 35618 b
Act. For the purposes of this Act, references in such
incorporated Sections of the Retailers' Occupation Tax Act to
retailers, sellers or persons engaged in the business of
selling tangible personal property means persons engaged in
conducting charitable games, and references in such
incorporated Sections of the Retailers' Occupation Tax Act to
sales of tangible personal property mean the conducting of
charitable games and the making of charges for playing such
games.
If any payment provided for in this Section exceeds the
taxpayer's liabilities under this Act, as shown on an original
return, the taxpayer may credit such excess payment against
liability subsequently to be remitted to the Department under
this Act, in accordance with reasonable rules adopted by the
Department.
All payments made to the Department of Revenue under this
Section shall be deposited into the Illinois Gaming Law
Enforcement Fund of the State Treasury.
(Source: P.A. 98-377, eff. 1-1-14.)
Section 150. The Liquor Control Act of 1934 is amended by
changing Section 8-2 as follows:
(235 ILCS 5/8-2) (from Ch. 43, par. 159)
Sec. 8-2. Payments; reports. It is the duty of each
manufacturer with respect to alcoholic liquor produced or

SB3445 - 584 - LRB100 20331 HLH 35618 b
imported by such manufacturer, or purchased tax-free by such
manufacturer from another manufacturer or importing
distributor, and of each importing distributor as to alcoholic
liquor purchased by such importing distributor from foreign
importers or from anyone from any point in the United States
outside of this State or purchased tax-free from another
manufacturer or importing distributor, to pay the tax imposed
by Section 8-1 to the Department of Revenue on or before the
15th day of the calendar month following the calendar month in
which such alcoholic liquor is sold or used by such
manufacturer or by such importing distributor other than in an
authorized tax-free manner or to pay that tax electronically as
provided in this Section.
Each manufacturer and each importing distributor shall
make payment under one of the following methods: (1) on or
before the 15th day of each calendar month, file in person or
by United States first-class mail, postage pre-paid, with the
Department of Revenue, on forms prescribed and furnished by the
Department, a report in writing in such form as may be required
by the Department in order to compute, and assure the accuracy
of, the tax due on all taxable sales and uses of alcoholic
liquor occurring during the preceding month. Payment of the tax
in the amount disclosed by the report shall accompany the
report or, (2) on or before the 15th day of each calendar
month, electronically file with the Department of Revenue, on
forms prescribed and furnished by the Department, an electronic

SB3445 - 585 - LRB100 20331 HLH 35618 b
report in such form as may be required by the Department in
order to compute, and assure the accuracy of, the tax due on
all taxable sales and uses of alcoholic liquor occurring during
the preceding month. An electronic payment of the tax in the
amount disclosed by the report shall accompany the report. A
manufacturer or distributor who files an electronic report and
electronically pays the tax imposed pursuant to Section 8-1 to
the Department of Revenue on or before the 15th day of the
calendar month following the calendar month in which such
alcoholic liquor is sold or used by that manufacturer or
importing distributor other than in an authorized tax-free
manner shall pay to the Department the amount of the tax
imposed pursuant to Section 8-1, less a discount which is
allowed to reimburse the manufacturer or importing distributor
for the expenses incurred in keeping and maintaining records,
preparing and filing the electronic returns, remitting the tax,
and supplying data to the Department upon request.
The discount shall be in an amount as follows:
(1) For original returns due on or after January 1,
2003 through September 30, 2003, the discount shall be
1.75% or $1,250 per return, whichever is less;
(2) For original returns due on or after October 1,
2003 through September 30, 2004, the discount shall be 2%
or $3,000 per return, whichever is less; and
(3) For original returns due on or after October 1,
2004, the discount shall be 2% or $2,000 per return,

SB3445 - 586 - LRB100 20331 HLH 35618 b
whichever is less.
The Department may, if it deems it necessary in order to
insure the payment of the tax imposed by this Article, require
returns to be made more frequently than and covering periods of
less than a month. Such return shall contain such further
information as the Department may reasonably require.
It shall be presumed that all alcoholic liquors acquired or
made by any importing distributor or manufacturer have been
sold or used by him in this State and are the basis for the tax
imposed by this Article unless proven, to the satisfaction of
the Department, that such alcoholic liquors are (1) still in
the possession of such importing distributor or manufacturer,
or (2) prior to the termination of possession have been lost by
theft or through unintentional destruction, or (3) that such
alcoholic liquors are otherwise exempt from taxation under this
Act.
If any payment provided for in this Section exceeds the
manufacturer's or importing distributor's liabilities under
this Act, as shown on an original report, the manufacturer or
importing distributor may credit such excess payment against
liability subsequently to be remitted to the Department under
this Act, in accordance with reasonable rules adopted by the
Department. If the Department subsequently determines that all
or any part of the credit taken was not actually due to the
manufacturer or importing distributor, the manufacturer's or
importing distributor's discount shall be reduced by an amount

SB3445 - 587 - LRB100 20331 HLH 35618 b
equal to the difference between the discount as applied to the
credit taken and that actually due, and the manufacturer or
importing distributor shall be liable for penalties and
interest on such difference.
The Department may require any foreign importer to file
monthly information returns, by the 15th day of the month
following the month which any such return covers, if the
Department determines this to be necessary to the proper
performance of the Department's functions and duties under this
Act. Such return shall contain such information as the
Department may reasonably require.
Every manufacturer and importing distributor shall also
file, with the Department, a bond in an amount not less than
$1,000 and not to exceed $100,000 on a form to be approved by,
and with a surety or sureties satisfactory to, the Department.
Such bond shall be conditioned upon the manufacturer or
importing distributor paying to the Department all monies
becoming due from such manufacturer or importing distributor
under this Article. The Department shall fix the penalty of
such bond in each case, taking into consideration the amount of
alcoholic liquor expected to be sold and used by such
manufacturer or importing distributor, and the penalty fixed by
the Department shall be sufficient, in the Department's
opinion, to protect the State of Illinois against failure to
pay any amount due under this Article, but the amount of the
penalty fixed by the Department shall not exceed twice the

SB3445 - 588 - LRB100 20331 HLH 35618 b
amount of tax liability of a monthly return, nor shall the
amount of such penalty be less than $1,000. The Department
shall notify the Commission of the Department's approval or
disapproval of any such manufacturer's or importing
distributor's bond, or of the termination or cancellation of
any such bond, or of the Department's direction to a
manufacturer or importing distributor that he must file
additional bond in order to comply with this Section. The
Commission shall not issue a license to any applicant for a
manufacturer's or importing distributor's license unless the
Commission has received a notification from the Department
showing that such applicant has filed a satisfactory bond with
the Department hereunder and that such bond has been approved
by the Department. Failure by any licensed manufacturer or
importing distributor to keep a satisfactory bond in effect
with the Department or to furnish additional bond to the
Department, when required hereunder by the Department to do so,
shall be grounds for the revocation or suspension of such
manufacturer's or importing distributor's license by the
Commission. If a manufacturer or importing distributor fails to
pay any amount due under this Article, his bond with the
Department shall be deemed forfeited, and the Department may
institute a suit in its own name on such bond.
After notice and opportunity for a hearing the State
Commission may revoke or suspend the license of any
manufacturer or importing distributor who fails to comply with

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the provisions of this Section. Notice of such hearing and the
time and place thereof shall be in writing and shall contain a
statement of the charges against the licensee. Such notice may
be given by United States registered or certified mail with
return receipt requested, addressed to the person concerned at
his last known address and shall be given not less than 7 days
prior to the date fixed for the hearing. An order revoking or
suspending a license under the provisions of this Section may
be reviewed in the manner provided in Section 7-10 of this Act.
No new license shall be granted to a person whose license has
been revoked for a violation of this Section or, in case of
suspension, shall such suspension be terminated until he has
paid to the Department all taxes and penalties which he owes
the State under the provisions of this Act.
Every manufacturer or importing distributor who has, as
verified by the Department, continuously complied with the
conditions of the bond under this Act for a period of 2 years
shall be considered to be a prior continuous compliance
taxpayer. In determining the consecutive period of time for
qualification as a prior continuous compliance taxpayer, any
consecutive period of time of qualifying compliance
immediately prior to the effective date of this amendatory Act
of 1987 shall be credited to any manufacturer or importing
distributor.
A manufacturer or importing distributor that is a prior
continuous compliance taxpayer under this Section and becomes a

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successor as the result of an acquisition, merger, or
consolidation of a manufacturer or importing distributor shall
be deemed to be a prior continuous compliance taxpayer with
respect to the acquired, merged, or consolidated entity.
Every prior continuous compliance taxpayer shall be exempt
from the bond requirements of this Act until the Department has
determined the taxpayer to be delinquent in the filing of any
return or deficient in the payment of any tax under this Act.
Any taxpayer who fails to pay an admitted or established
liability under this Act may also be required to post bond or
other acceptable security with the Department guaranteeing the
payment of such admitted or established liability.
The Department shall discharge any surety and shall release
and return any bond or security deposit assigned, pledged or
otherwise provided to it by a taxpayer under this Section
within 30 days after: (1) such taxpayer becomes a prior
continuous compliance taxpayer; or (2) such taxpayer has ceased
to collect receipts on which he is required to remit tax to the
Department, has filed a final tax return, and has paid to the
Department an amount sufficient to discharge his remaining tax
liability as determined by the Department under this Act.
(Source: P.A. 95-769, eff. 7-29-08.)
Section 155. The Energy Assistance Act is amended by
changing Section 13 and by adding Section 19 as follows:

SB3445 - 591 - LRB100 20331 HLH 35618 b
(305 ILCS 20/13)
(Section scheduled to be repealed on January 1, 2025)
Sec. 13. Supplemental Low-Income Energy Assistance Fund.
(a) The Supplemental Low-Income Energy Assistance Fund is
hereby created as a special fund in the State Treasury. The
Supplemental Low-Income Energy Assistance Fund is authorized
to receive moneys from voluntary donations from individuals,
foundations, corporations, and other sources, moneys received
pursuant to Section 17, and, by statutory deposit, the moneys
collected pursuant to this Section. The Fund is also authorized
to receive voluntary donations from individuals, foundations,
corporations, and other sources. Subject to appropriation, the
Department shall use moneys from the Supplemental Low-Income
Energy Assistance Fund for payments to electric or gas public
utilities, municipal electric or gas utilities, and electric
cooperatives on behalf of their customers who are participants
in the program authorized by Sections 4 and 18 of this Act, for
the provision of weatherization services and for
administration of the Supplemental Low-Income Energy
Assistance Fund. The yearly expenditures for weatherization
may not exceed 10% of the amount collected during the year
pursuant to this Section. The yearly administrative expenses of
the Supplemental Low-Income Energy Assistance Fund may not
exceed 10% of the amount collected during that year pursuant to
this Section, except when unspent funds from the Supplemental
Low-Income Energy Assistance Fund are reallocated from a

SB3445 - 592 - LRB100 20331 HLH 35618 b
previous year; any unspent balance of the 10% administrative
allowance may be utilized for administrative expenses in the
year they are reallocated.
(b) Notwithstanding the provisions of Section 16-111 of the
Public Utilities Act but subject to subsection (k) of this
Section, each public utility, electric cooperative, as defined
in Section 3.4 of the Electric Supplier Act, and municipal
utility, as referenced in Section 3-105 of the Public Utilities
Act, that is engaged in the delivery of electricity or the
distribution of natural gas within the State of Illinois shall,
effective January 1, 1998, assess each of its customer accounts
a monthly Energy Assistance Charge for the Supplemental
Low-Income Energy Assistance Fund. The delivering public
utility, municipal electric or gas utility, or electric or gas
cooperative for a self-assessing purchaser remains subject to
the collection of the fee imposed by this Section. The monthly
charge shall be as follows:
(1) $0.48 per month on each account for residential
electric service;
(2) $0.48 per month on each account for residential gas
service;
(3) $4.80 per month on each account for non-residential
electric service which had less than 10 megawatts of peak
demand during the previous calendar year;
(4) $4.80 per month on each account for non-residential
gas service which had distributed to it less than 4,000,000

SB3445 - 593 - LRB100 20331 HLH 35618 b
therms of gas during the previous calendar year;
(5) $360 per month on each account for non-residential
electric service which had 10 megawatts or greater of peak
demand during the previous calendar year; and
(6) $360 per month on each account for non-residential
gas service which had 4,000,000 or more therms of gas
distributed to it during the previous calendar year.
The incremental change to such charges imposed by this
amendatory Act of the 96th General Assembly shall not (i) be
used for any purpose other than to directly assist customers
and (ii) be applicable to utilities serving less than 100,000
customers in Illinois on January 1, 2009.
In addition, electric and gas utilities have committed, and
shall contribute, a one-time payment of $22 million to the
Fund, within 10 days after the effective date of the tariffs
established pursuant to Sections 16-111.8 and 19-145 of the
Public Utilities Act to be used for the Department's cost of
implementing the programs described in Section 18 of this
amendatory Act of the 96th General Assembly, the Arrearage
Reduction Program described in Section 18, and the programs
described in Section 8-105 of the Public Utilities Act. If a
utility elects not to file a rider within 90 days after the
effective date of this amendatory Act of the 96th General
Assembly, then the contribution from such utility shall be made
no later than February 1, 2010.
(c) For purposes of this Section:

SB3445 - 594 - LRB100 20331 HLH 35618 b
(1) "residential electric service" means electric
utility service for household purposes delivered to a
dwelling of 2 or fewer units which is billed under a
residential rate, or electric utility service for
household purposes delivered to a dwelling unit or units
which is billed under a residential rate and is registered
by a separate meter for each dwelling unit;
(2) "residential gas service" means gas utility
service for household purposes distributed to a dwelling of
2 or fewer units which is billed under a residential rate,
or gas utility service for household purposes distributed
to a dwelling unit or units which is billed under a
residential rate and is registered by a separate meter for
each dwelling unit;
(3) "non-residential electric service" means electric
utility service which is not residential electric service;
and
(4) "non-residential gas service" means gas utility
service which is not residential gas service.
(d) Within 30 days after the effective date of this
amendatory Act of the 96th General Assembly, each public
utility engaged in the delivery of electricity or the
distribution of natural gas shall file with the Illinois
Commerce Commission tariffs incorporating the Energy
Assistance Charge in other charges stated in such tariffs,
which shall become effective no later than the beginning of the

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first billing cycle following such filing.
(e) The Energy Assistance Charge assessed by electric and
gas public utilities shall be considered a charge for public
utility service.
(f) By the 20th day of the month following the month in
which the charges imposed by the Section were collected, each
public utility, municipal utility, and electric cooperative
shall remit to the Department of Revenue all moneys received as
payment of the Energy Assistance Charge on a return prescribed
and furnished by the Department of Revenue showing such
information as the Department of Revenue may reasonably
require; provided, however, that a utility offering an
Arrearage Reduction Program or Supplemental Arrearage
Reduction Program pursuant to Section 18 of this Act shall be
entitled to net those amounts necessary to fund and recover the
costs of such Programs as authorized by that Section that is no
more than the incremental change in such Energy Assistance
Charge authorized by Public Act 96-33. If a customer makes a
partial payment, a public utility, municipal utility, or
electric cooperative may elect either: (i) to apply such
partial payments first to amounts owed to the utility or
cooperative for its services and then to payment for the Energy
Assistance Charge or (ii) to apply such partial payments on a
pro-rata basis between amounts owed to the utility or
cooperative for its services and to payment for the Energy
Assistance Charge.

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If any payment provided for in this Section exceeds the
distributor's liabilities under this Act, as shown on an
original return, the Department may authorize the distributor
to credit such excess payment against liability subsequently to
be remitted to the Department under this Act, in accordance
with reasonable rules adopted by the Department. If the
Department subsequently determines that all or any part of the
credit taken was not actually due to the distributor, the
distributor's discount shall be reduced by an amount equal to
the difference between the discount as applied to the credit
taken and that actually due, and that distributor shall be
liable for penalties and interest on such difference.
(g) The Department of Revenue shall deposit into the
Supplemental Low-Income Energy Assistance Fund all moneys
remitted to it in accordance with subsection (f) of this
Section; provided, however, that the amounts remitted by each
utility shall be used to provide assistance to that utility's
customers. The utilities shall coordinate with the Department
to establish an equitable and practical methodology for
implementing this subsection (g) beginning with the 2010
program year.
(h) On or before December 31, 2002, the Department shall
prepare a report for the General Assembly on the expenditure of
funds appropriated from the Low-Income Energy Assistance Block
Grant Fund for the program authorized under Section 4 of this
Act.

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(i) The Department of Revenue may establish such rules as
it deems necessary to implement this Section.
(j) The Department of Commerce and Economic Opportunity may
establish such rules as it deems necessary to implement this
Section.
(k) The charges imposed by this Section shall only apply to
customers of municipal electric or gas utilities and electric
or gas cooperatives if the municipal electric or gas utility or
electric or gas cooperative makes an affirmative decision to
impose the charge. If a municipal electric or gas utility or an
electric cooperative makes an affirmative decision to impose
the charge provided by this Section, the municipal electric or
gas utility or electric cooperative shall inform the Department
of Revenue in writing of such decision when it begins to impose
the charge. If a municipal electric or gas utility or electric
or gas cooperative does not assess this charge, the Department
may not use funds from the Supplemental Low-Income Energy
Assistance Fund to provide benefits to its customers under the
program authorized by Section 4 of this Act.
In its use of federal funds under this Act, the Department
may not cause a disproportionate share of those federal funds
to benefit customers of systems which do not assess the charge
provided by this Section.
This Section is repealed on January 1, 2025 unless renewed
by action of the General Assembly.
(Source: P.A. 98-429, eff. 8-16-13; 99-457, eff. 1-1-16;

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99-906, eff. 6-1-17; 99-933, eff. 1-27-17; revised 11-8-17.)
(305 ILCS 20/19 new)
Sec. 19. Application of Retailers' Occupation Tax
provisions. All the provisions of Sections 4, 5, 5a, 5b, 5c,
5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12,
and 13 of the Retailers' Occupation Tax Act that are not
inconsistent with this Act apply, as far as practicable, to the
surcharge imposed by this Act to the same extent as if those
provisions were included in this Act. References in the
incorporated Sections of the Retailers' Occupation Tax Act to
retailers, to sellers, or to persons engaged in the business of
selling tangible personal property mean persons required to
remit the charge imposed under this Act.
Section 160. The Environmental Protection Act is amended by
changing Section 55.10 as follows:
(415 ILCS 5/55.10) (from Ch. 111 1/2, par. 1055.10)
Sec. 55.10. Tax returns by retailer.
(a) Except as otherwise provided in this Section, for
returns due on or before January 31, 2010, each retailer of
tires maintaining a place of business in this State shall make
a return to the Department of Revenue on a quarter annual
basis, with the return for January, February and March of a
given year being due by April 30 of that year; with the return

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for April, May and June of a given year being due by July 31 of
that year; with the return for July, August and September of a
given year being due by October 31 of that year; and with the
return for October, November and December of a given year being
due by January 31 of the following year.
For returns due after January 31, 2010, each retailer of
tires maintaining a place of business in this State shall make
a return to the Department of Revenue on a quarter annual
basis, with the return for January, February, and March of a
given year being due by April 20 of that year; with the return
for April, May, and June of a given year being due by July 20 of
that year; with the return for July, August, and September of a
given year being due by October 20 of that year; and with the
return for October, November, and December of a given year
being due by January 20 of the following year.
Notwithstanding any other provision of this Section to the
contrary, the return for October, November, and December of
2009 is due by February 20, 2010.
On and after January 1, 2018, tire retailers and suppliers
required to file electronically under Section 3 of the
Retailers' Occupation Tax Act or Section 9 of the Use Tax Act
must electronically file all returns pursuant to this Act. Tire
retailers and suppliers who demonstrate that they do not have
access to the Internet or demonstrate hardship in filing
electronically may petition the Department to waive the
electronic filing requirement.

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(b) Each return made to the Department of Revenue shall
state:
(1) the name of the retailer;
(2) the address of the retailer's principal place of
business, and the address of the principal place of
business (if that is a different address) from which the
retailer engages in the business of making retail sales of
tires;
(3) total number of tires sold at retail for the
preceding calendar quarter;
(4) the amount of tax due; and
(5) such other reasonable information as the
Department of Revenue may require.
If any payment provided for in this Section exceeds the
retailer's liabilities under this Act, as shown on an original
return, the retailer may credit such excess payment against
liability subsequently to be remitted to the Department under
this Act, in accordance with reasonable rules adopted by the
Department. If the Department subsequently determines that all
or any part of the credit taken was not actually due to the
retailer, the retailer's discount shall be reduced by the
monetary amount of the discount applicable to the difference
between the credit taken and that actually due, and the
retailer shall be liable for penalties and interest on such
difference.
Notwithstanding any other provision of this Act concerning

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the time within which a retailer may file his return, in the
case of any retailer who ceases to engage in the retail sale of
tires, the retailer shall file a final return under this Act
with the Department of Revenue not more than one month after
discontinuing that business.
(Source: P.A. 100-303, eff. 8-24-17.)
Section 165. The Environmental Impact Fee Law is amended by
changing Section 315 as follows:
(415 ILCS 125/315)
(Section scheduled to be repealed on January 1, 2025)
Sec. 315. Fee on receivers of fuel for sale or use;
collection and reporting. A person that is required to pay the
fee imposed by this Law shall pay the fee to the Department by
return showing all fuel purchased, acquired, or received and
sold, distributed or used during the preceding calendar month,
including losses of fuel as the result of evaporation or
shrinkage due to temperature variations, and such other
reasonable information as the Department may require. Losses of
fuel as the result of evaporation or shrinkage due to
temperature variations may not exceed 1% of the total gallons
in storage at the beginning of the month, plus the receipts of
gallonage during the month, minus the gallonage remaining in
storage at the end of the month. Any loss reported that is in
excess of this amount shall be subject to the fee imposed by

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Section 310 of this Law. On and after July 1, 2001, for each
6-month period January through June, net losses of fuel (for
each category of fuel that is required to be reported on a
return) as the result of evaporation or shrinkage due to
temperature variations may not exceed 1% of the total gallons
in storage at the beginning of each January, plus the receipts
of gallonage each January through June, minus the gallonage
remaining in storage at the end of each June. On and after July
1, 2001, for each 6-month period July through December, net
losses of fuel (for each category of fuel that is required to
be reported on a return) as the result of evaporation or
shrinkage due to temperature variations may not exceed 1% of
the total gallons in storage at the beginning of each July,
plus the receipts of gallonage each July through December,
minus the gallonage remaining in storage at the end of each
December. Any net loss reported that is in excess of this
amount shall be subject to the fee imposed by Section 310 of
this Law. For purposes of this Section, "net loss" means the
number of gallons gained through temperature variations minus
the number of gallons lost through temperature variations or
evaporation for each of the respective 6-month periods.
The return shall be prescribed by the Department and shall
be filed between the 1st and 20th days of each calendar month.
The Department may, in its discretion, combine the return filed
under this Law with the return filed under Section 2b of the
Motor Fuel Tax Law. If the return is timely filed, the receiver

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may take a discount of 2% through June 30, 2003 and 1.75%
thereafter to reimburse himself for the expenses incurred in
keeping records, preparing and filing returns, collecting and
remitting the fee, and supplying data to the Department on
request. However, the discount applies only to the amount of
the fee payment that accompanies a return that is timely filed
in accordance with this Section.
If any payment provided for in this Section exceeds the
receiver's liabilities under this Act, as shown on an original
return, the Department may authorize the receiver to credit
such excess payment against liability subsequently to be
remitted to the Department under this Act, in accordance with
reasonable rules adopted by the Department. If the Department
subsequently determines that all or any part of the credit
taken was not actually due to the receiver, the receiver's
discount shall be reduced by an amount equal to the difference
between the discount as applied to the credit taken and that
actually due, and that receiver shall be liable for penalties
and interest on such difference.
(Source: P.A. 92-30, eff. 7-1-01; 93-32, eff. 6-20-03.)
Section 170. The Drycleaner Environmental Response Trust
Fund Act is amended by changing Section 65 as follows:
(415 ILCS 135/65)
(Section scheduled to be repealed on January 1, 2020)

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Sec. 65. Drycleaning solvent tax.
(a) On and after January 1, 1998, a tax is imposed upon the
use of drycleaning solvent by a person engaged in the business
of operating a drycleaning facility in this State at the rate
of $3.50 per gallon of perchloroethylene or other chlorinated
drycleaning solvents used in drycleaning operations, $0.35 per
gallon of petroleum-based drycleaning solvent, and $1.75 per
gallon of green solvents, unless the green solvent is used at a
virgin facility, in which case the rate is $0.35 per gallon.
The Council shall determine by rule which products are
chlorine-based solvents, which products are petroleum-based
solvents, and which products are green solvents. All
drycleaning solvents shall be considered chlorinated solvents
unless the Council determines that the solvents are
petroleum-based drycleaning solvents or green solvents.
(b) The tax imposed by this Act shall be collected from the
purchaser at the time of sale by a seller of drycleaning
solvents maintaining a place of business in this State and
shall be remitted to the Department of Revenue under the
provisions of this Act.
(c) The tax imposed by this Act that is not collected by a
seller of drycleaning solvents shall be paid directly to the
Department of Revenue by the purchaser or end user who is
subject to the tax imposed by this Act.
(d) No tax shall be imposed upon the use of drycleaning
solvent if the drycleaning solvent will not be used in a

SB3445 - 605 - LRB100 20331 HLH 35618 b
drycleaning facility or if a floor stock tax has been imposed
and paid on the drycleaning solvent. Prior to the purchase of
the solvent, the purchaser shall provide a written and signed
certificate to the drycleaning solvent seller stating:
(1) the name and address of the purchaser;
(2) the purchaser's signature and date of signing; and
(3) one of the following:
(A) that the drycleaning solvent will not be used
in a drycleaning facility; or
(B) that a floor stock tax has been imposed and
paid on the drycleaning solvent.
(e) On January 1, 1998, there is imposed on each operator
of a drycleaning facility a tax on drycleaning solvent held by
the operator on that date for use in a drycleaning facility.
The tax imposed shall be the tax that would have been imposed
under subsection (a) if the drycleaning solvent held by the
operator on that date had been purchased by the operator during
the first year of this Act.
(f) On or before the 25th day of the 1st month following
the end of the calendar quarter, a seller of drycleaning
solvents who has collected a tax pursuant to this Section
during the previous calendar quarter, or a purchaser or end
user of drycleaning solvents required under subsection (c) to
submit the tax directly to the Department, shall file a return
with the Department of Revenue. The return shall be filed on a
form prescribed by the Department of Revenue and shall contain

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information that the Department of Revenue reasonably
requires, but at a minimum will require the reporting of the
volume of drycleaning solvent sold to each licensed drycleaner.
The Department of Revenue shall report quarterly to the Council
the volume of drycleaning solvent purchased for the quarter by
each licensed drycleaner. Each seller of drycleaning solvent
maintaining a place of business in this State who is required
or authorized to collect the tax imposed by this Act shall pay
to the Department the amount of the tax at the time when he or
she is required to file his or her return for the period during
which the tax was collected. Purchasers or end users remitting
the tax directly to the Department under subsection (c) shall
file a return with the Department of Revenue and pay the tax so
incurred by the purchaser or end user during the preceding
calendar quarter.
Except as provided in this Section, the seller of
drycleaning solvents filing the return under this Section
shall, at the time of filing the return, pay to the Department
the amount of tax imposed by this Act less a discount of 1.75%,
or $5 per calendar year, whichever is greater. Failure to
timely file the returns and provide to the Department the data
requested under this Act will result in disallowance of the
reimbursement discount.
(g) The tax on drycleaning solvents used in drycleaning
facilities and the floor stock tax shall be administered by
Department of Revenue under rules adopted by that Department.

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(h) On and after January 1, 1998, no person shall knowingly
sell or transfer drycleaning solvent to an operator of a
drycleaning facility that is not licensed by the Council under
Section 60.
(i) The Department of Revenue may adopt rules as necessary
to implement this Section.
(j) If any payment provided for in this Section exceeds the
seller's liabilities under this Act, as shown on an original
return, the seller may credit such excess payment against
liability subsequently to be remitted to the Department under
this Act, in accordance with reasonable rules adopted by the
Department. If the Department subsequently determines that all
or any part of the credit taken was not actually due to the
seller, the seller's discount shall be reduced by an amount
equal to the difference between the discount as applied to the
credit taken and that actually due, and the seller shall be
liable for penalties and interest on such difference.
(Source: P.A. 96-774, eff. 1-1-10.)
Section 995. No acceleration or delay. Where this Act makes
changes in a statute that is represented in this Act by text
that is not yet or no longer in effect (for example, a Section
represented by multiple versions), the use of that text does
not accelerate or delay the taking effect of (i) the changes
made by this Act or (ii) provisions derived from any other
Public Act.

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Section 999. Effective date. This Act takes effect upon
becoming law.
SB3445 - 609 - LRB100 20331 HLH 35618 b
INDEX
Statutes amended in order of appearance
20 ILCS 687/6-5
20 ILCS 687/6-8 new
20 ILCS 715/10 rep.
20 ILCS 2505/2505-210 was 20 ILCS 2505/39c-1
30 ILCS 105/6z-18 from Ch. 127, par. 142z-18
35 ILCS 5/703A new
35 ILCS 5/901 from Ch. 120, par. 9-901
35 ILCS 105/3-5
35 ILCS 105/3-5.5
35 ILCS 105/9 from Ch. 120, par. 439.9
35 ILCS 105/10 from Ch. 120, par. 439.10
35 ILCS 110/3-5
35 ILCS 110/3-5.5
35 ILCS 110/9 from Ch. 120, par. 439.39
35 ILCS 115/3-5
35 ILCS 115/3-5.5
35 ILCS 115/9 from Ch. 120, par. 439.109
35 ILCS 120/2-5
35 ILCS 120/2-5.5
35 ILCS 120/3 from Ch. 120, par. 442
35 ILCS 120/5j from Ch. 120, par. 444j
35 ILCS 128/1-40
35 ILCS 130/2 from Ch. 120, par. 453.2
SB3445 - 610 - LRB100 20331 HLH 35618 b
35 ILCS 135/3 from Ch. 120, par. 453.33
35 ILCS 143/10-30
35 ILCS 145/6 from Ch. 120, par. 481b.36
35 ILCS 175/10
35 ILCS 450/2-45
35 ILCS 450/2-50
35 ILCS 505/2b from Ch. 120, par. 418b
35 ILCS 505/5 from Ch. 120, par. 421
35 ILCS 505/5a from Ch. 120, par. 421a
35 ILCS 505/13 from Ch. 120, par. 429
35 ILCS 505/13a.4 from Ch. 120, par. 429a4
35 ILCS 505/13a.5 from Ch. 120, par. 429a5
35 ILCS 615/2a.2 from Ch. 120, par. 467.17a.2
35 ILCS 615/3 from Ch. 120, par. 467.18
35 ILCS 620/2a.2 from Ch. 120, par. 469a.2
35 ILCS 630/6 from Ch. 120, par. 2006
35 ILCS 640/2-9
35 ILCS 640/2-11
50 ILCS 470/31
55 ILCS 5/5-1006 from Ch. 34, par. 5-1006
55 ILCS 5/5-1006.5
55 ILCS 5/5-1006.7
55 ILCS 5/5-1007 from Ch. 34, par. 5-1007
55 ILCS 5/5-1008.5
65 ILCS 5/8-11-1 from Ch. 24, par. 8-11-1
65 ILCS 5/8-11-1.3 from Ch. 24, par. 8-11-1.3
SB3445 - 611 - LRB100 20331 HLH 35618 b