Bill Text: IL SB4200 | 2025-2026 | 104th General Assembly | Introduced

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Bill Title: Specifies that the amendatory Act may be referred to as the Reducing Expenses and Advancing Local (REAL) Housing Act. Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Creates the Middle Housing Incentive Program. Amends the Department of Labor Law of the Civil Administrative Code of Illinois. Authorizes the Department to establish workforce development initiatives. Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. Extends the Veteran Property Tax Relief Reimbursement Pilot Program to July 1, 2030 (rather than July 1, 2028). Describes administrative responsibilities of the Department. Amends the State Finance Act. Creates the Veterans Property Tax Relief Reimbursement Pilot Program Fund and the Middle Housing Incentive Program Fund as special funds in the State treasury. Amends the Illinois Municipal Code and the Counties Code. Provides that a county or municipality may opt in, by resolution, to participate in the receipt of Local Government Distributive Fund revenues exceeding 8% of State income tax collections. Authorizes by-right overlay districts for middle housing and other housing-related innovations. Amends the Tax Increment Allocation Redevelopment Act. Makes changes to the definition of "redevelopment costs." Amends the Use Tax Act, the Services Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Changes the rate of tax on qualified residential development building materials to 1.25% (rather than 6.25%). Amends the Property Tax Code. Makes changes concerning the distribution of moneys collected from the Real Estate Transfer Tax. Amends the Prevailing Wage Act. Modifies the definition of "public works". Amends the Illinois Housing Development Act. Establishes grant-making and reporting requirements for the Illinois Housing Development Authority. Amends the Real Estate License Act of 2000. Limits commissions charged in residential real estate transactions. Amends the Security Deposit Return Act, the Security Deposit Interest Act, and the Landlord and Tenant Act. Makes changes regarding screening reports of prospective tenants and upfront rental costs of residential units. Makes conforming changes in the Condominium Property Act and the Common Interest Community Association Act regarding middle housing. Makes other changes. Effective January 1, 2028.

Sponsorship: Partisan Bill (Republican 2)

Status: (Introduced) 2026-05-21 - Added as Co-Sponsor Sen. Jil Tracy [SB4200 Detail]

Download: Illinois-2025-SB4200-Introduced.html

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104TH GENERAL ASSEMBLY State of Illinois 2025 and 2026SB4200 Introduced 5/7/2026, by Sen. Donald P. DeWitte SYNOPSIS AS INTRODUCED:
See Index
Specifies that the amendatory Act may be referred to as the Reducing Expenses and Advancing Local (REAL) Housing Act. Amends the Department of Commerce and Economic Opportunity Law of the Civil Administrative Code of Illinois. Creates the Middle Housing Incentive Program. Amends the Department of Labor Law of the Civil Administrative Code of Illinois. Authorizes the Department to establish workforce development initiatives. Amends the Department of Revenue Law of the Civil Administrative Code of Illinois. Extends the Veteran Property Tax Relief Reimbursement Pilot Program to July 1, 2030 (rather than July 1, 2028). Describes administrative responsibilities of the Department. Amends the State Finance Act. Creates the Veterans Property Tax Relief Reimbursement Pilot Program Fund and the Middle Housing Incentive Program Fund as special funds in the State treasury. Amends the Illinois Municipal Code and the Counties Code. Provides that a county or municipality may opt in, by resolution, to participate in the receipt of Local Government Distributive Fund revenues exceeding 8% of State income tax collections. Authorizes by-right overlay districts for middle housing and other housing-related innovations. Amends the Tax Increment Allocation Redevelopment Act. Makes changes to the definition of "redevelopment costs." Amends the Use Tax Act, the Services Use Tax Act, the Service Occupation Tax Act, and the Retailers' Occupation Tax Act. Changes the rate of tax on qualified residential development building materials to 1.25% (rather than 6.25%). Amends the Property Tax Code. Makes changes concerning the distribution of moneys collected from the Real Estate Transfer Tax. Amends the Prevailing Wage Act. Modifies the definition of "public works". Amends the Illinois Housing Development Act. Establishes grant-making and reporting requirements for the Illinois Housing Development Authority. Amends the Real Estate License Act of 2000. Limits commissions charged in residential real estate transactions. Amends the Security Deposit Return Act, the Security Deposit Interest Act, and the Landlord and Tenant Act. Makes changes regarding screening reports of prospective tenants and upfront rental costs of residential units. Makes conforming changes in the Condominium Property Act and the Common Interest Community Association Act regarding middle housing. Makes other changes. Effective January 1, 2028.
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A BILL FOR
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AN ACT concerning housing.
Be it enacted by the People of the State of Illinois,
represented in the General Assembly:
Section 1. References to Act. This Act may be referred to
as the Reducing Expenses and Advancing Local (REAL) Housing
Act.
Section 5. Legislative findings; purpose; construction of
Act.
(a) The General Assembly finds and declares that:
(1) local governments across the State are
implementing tailored housing solutions that reflect the
needs of their communities; and
(2) the City of Chicago, for example, has authorized
accessory dwelling units and other forms of middle housing
through locally driven processes, which demonstrates that
housing innovation can occur at the municipal and even
neighborhood level, allowing policies to reflect
infrastructure capacity, community character, and public
safety considerations.
(b) It is, therefore, the purpose of this Act to:
(1) support and expand these locally initiated
solutions by responding directly to the rising cost of
housing, which is one of the most significant financial

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pressures facing Illinois families today and is driven in
large part by high property taxes;
(2) deliver real relief by lowering what people pay to
live in their homes and putting money back in their
pockets every single month;
(3) commit to taxpayers that, when the State increases
funding for the Local Government Distributive Fund, those
dollars must result in property tax relief;
(4) tie future Local Government Distributive Fund
increases to direct reductions in local property tax
levies, thereby ensuring that additional State revenue is
returned to the people that provided it rather than being
absorbed into higher State spending;
(5) create a transparent, accountable system where
taxpayers can see and feel the benefit of these changes;
(6) address the policies that inflate housing costs by
reducing overall housing expenses by at least 10%;
(7) provide Illinois families with real, tangible
savings rather than a one-size-fits-all mandate that
shifts costs onto local communities;
(8) respect local decision-making and autonomy while
demanding that State policy finally deliver affordability
for the residents and taxpayers who are paying the bills;
and
(9) lower property taxes, lower housing costs,
increase skilled labor wages, and provide real financial

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relief for Illinois families without sacrificing local
control.
(c) Nothing in this Act shall be construed to:
(1) require a unit of local government to approve a
development or to limit the ability of a unit of local
government to deny a development application consistent
with applicable law;
(2) require a unit of local government to adopt or
amend a comprehensive plan, zoning ordinance, or land use
regulation;
(3) preempt or override local zoning, permitting, or
development decisions;
(4) limit the power of a unit of local government to
regulate land use, development, public safety, or
infrastructure consistent with applicable law; or
(5) prohibit a unit of local government from adopting
additional criteria, conditions, or certification
requirements for projects within its jurisdiction.
Section 10. The Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois
is amended by adding Sections 605-1119, 605-1120, 605-1121,
and 605-1122 as follows:
(20 ILCS 605/605-1119 new)
Sec. 605-1119. Project labor agreements for residential

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developments.
(a) The Department shall adopt rules to determine a
category of residential developments that, based on project
size, total development cost, and number of residential units
are of a scale for which the benefits of a project labor
agreement exceed the administrative burden associated with
compliance. A residential development that receives benefits
under this Section and is classified within the category shall
be required to enter into a project labor agreement in
accordance with the Project Labor Agreements Act.
(b) Nothing in this Section shall be construed to require
a unit of local government to mandate that a project sponsor
enter into a project labor agreement independent of this Act
or limit the authority of a unit of local government with
respect to project approval or labor considerations.
(20 ILCS 605/605-1120 new)
Sec. 605-1120. Middle Housing Incentive Program.
(a) As used in this Section:
"Accessory dwelling unit" means a residential living unit
that is located on a lot containing a single-family dwelling,
that provides independent living facilities for one or more
persons, including provisions for sleeping, eating, cooking,
and sanitation, on the same parcel of land as the principal
dwelling unit it accompanies, and that is either separated
from or attached to the primary dwelling unit.

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"Area median income" means the median family income for
the area, as determined by the United States Department of
Housing and Urban Development, with adjustments for family
size.
"By-right overlay district for middle housing" means a
zoning district superimposed on one or more other zoning
districts within a municipality's or county's zoning
jurisdiction in which middle housing development projects that
meet preset criteria established by the municipality or
county, as applicable, may proceed without further
discretionary review or public hearings.
"Fund" means the Middle Housing Incentive Fund.
"Middle housing" means small-scale, multiunit residential
housing types that are compatible with single-family
neighborhoods and accessible to households earning between 80%
and 140% of the area median income. "Middle housing" includes
duplexes, triplexes, fourplexes, and accessory dwelling units.
"Person" means any natural individual, firm, trust,
estate, partnership, association, joint-stock company, joint
venture, corporation, limited liability company, or a
receiver, trustee, guardian, or other representative appointed
by order of any court, the federal and State governments,
including State universities created by statute or any unit of
local government or other political subdivision of this State.
"Program" means the Middle Housing Incentive Program
created under this Section.

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"State agency" has the meaning given in Section 405-5 of
the Department of Central Management Services Law of the Civil
Administrative Code of Illinois.
(b) The Middle Housing Incentive Program is hereby
established as a program to be implemented and administered by
the Department. Other State agencies shall coordinate with the
Department to ensure consistent and efficient administration
of the Program within their respective jurisdictions. The
purpose of the Program is to support voluntary local
participation in expanding housing supply throughout the
State. The Program shall be supported by the Middle Housing
Incentive Fund.
(c) A county or municipality may opt in to the Program by
notice to the Department so long as it has adopted ordinances
or resolutions:
(1) to allow duplexes, triplexes, fourplexes, and
accessory dwelling units in designated areas within its
jurisdiction; and
(2) to provide for locally tailored zoning updates to
support middle housing within its jurisdiction.
(d) Participating counties and municipalities shall be
eligible for (i) targeted housing and infrastructure grants
pursuant to subsection (d) of this Section and (ii) technical
assistance for local comprehensive plans, zoning
modernization, and housing planning. In addition, the
Department and other State agencies shall, to the extent

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consistent with other applicable law, give priority to
participating counties and municipalities in the award of
State capital grants and other funding awards, including for
transportation, water, sewer, and infrastructure programs.
(e) Subject to appropriation, as part of the Program, the
Department shall establish an initiative to provide grants or
matching grants to participating counties and municipalities
for the purpose of supporting the development of middle
housing and required infrastructure. Grants awarded under this
Section may be with or without a local match of funds. The
Department shall prioritize counties and municipalities that
have established by-right overlay districts for middle housing
in the allocation of grants or other amounts from the Fund. In
addition, the Department and other State agencies shall, to
the extent consistent with other applicable law, expedite
their respective reviews of infrastructure projects of a
county or municipality that has established a by-right overlay
districts for middle housing, give priority to units of local
government in the award of State infrastructure funding that
demonstrates measurable increases in housing production, and
maintain compliance with local planning and safety standards.
(f) Each county or municipality participating in the
Program shall provide to the Department an annual report that
includes:
(1) units permitted and constructed;
(2) participation in incentive programs; and

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(3) infrastructure investments tied to housing growth.
Participation in the Program shall not be used as a
condition for unrelated funding from the State to any unit of
local government.
(g) The Department shall adopt rules to implement and
administer the provisions of this Section.
(20 ILCS 605/605-1121 new)
Sec. 605-1121. Administration of qualified residential
development building material tax exemption.
(a) As used in this Section:
"Accessory dwelling unit" means a residential living unit
that is located on a lot containing a single-family dwelling,
that provides independent living facilities for one or more
persons, including provisions for sleeping, eating, cooking,
and sanitation, on the same parcel of land as the principal
dwelling unit it accompanies, and that is either separated
from or attached to the primary dwelling unit.
"Area median income" means the median family income for
the area, as determined by the United States Department of
Housing and Urban Development, with adjustments for family
size.
"Middle housing" means small-scale, multiunit residential
housing types that are compatible with single-family
neighborhoods and accessible to households earning between 80%
and 140% of the area median income. "Middle housing" includes

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duplexes, triplexes, fourplexes, and accessory dwelling units.
"Person" means any natural individual, firm, trust,
estate, partnership, association, joint-stock company, joint
venture, corporation, limited liability company, or a
receiver, trustee, guardian, or other representative appointed
by order of any court, the federal and State governments,
including State universities created by statute or any unit of
local government or other political subdivision of this State.
"Program" means the Middle Housing Incentive Program
created under Section 605-1120 of the Department of Commerce
and Economic Opportunity Law of the Civil Administrative Code
of Illinois.
"Qualified residential development" means a residential
project that meets eligibility requirements established by the
Department under this Section.
"State agency" has the meaning given in Section 405-5 of
the Department of Central Management Services Law of the Civil
Administrative Code of Illinois.
"Taxpayer" means any person that is subject to the tax
imposed under the Illinois Income Tax Act.
(b) The Department may certify a taxpayer with a qualified
residential development for an exemption from the State
portion of the use tax or retailers' occupation tax on
building materials for the construction of the qualified
residential development. This exemption applies solely to the
State portion of the use tax or retailers' occupation tax and

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shall not affect any locally imposed taxes. The taxpayer must
meet any criteria for certification set by the Department
under this Act.
(c) The exemption provided in subsection (b) of this
Section shall apply only to building and housing materials,
including, but not limited to, structural components,
heating-ventilation-air conditioning (HVAC) systems, and
permanently installed fixtures that are:
(1) incorporated into the structure of a residential
unit; and
(2) used in the construction or substantial
rehabilitation of single-family homes, duplexes,
triplexes, fourplexes and other middle housing, or
accessory dwelling units.
(d) The exemption provided in subsection (b) of this
Section shall apply only to projects that meet one or more of
the following criteria:
(1) The project is located within the jurisdiction of
a county or municipality that is participating in the
Program.
(2) The project includes housing units whose prices
are affordable to households at or below 120% of the area
median income, based on an affordability measure
established by the Department.
(3) The project consists primarily of middle housing.
(e) If building materials purchased under this Section are

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not used in a qualifying residential development, the
purchaser shall be liable for the full amount of tax due,
penalties and interest shall apply, and the Illinois
Department of Revenue may revoke eligibility for the exemption
and pursue enforcement action.
(f) The Department may adopt rules to carry out the
provisions of this Section. Eligibility for the building
materials exemption shall be determined by the Department, in
coordination with the applicable municipality or county. Upon
approval, the Department shall issue a Building Materials
Exemption Certificate for each qualifying residential
development. Certificates shall be issued on a project
specific basis and may include expiration dates, usage
limitations, and reporting requirements.
(g) The Illinois Department of Revenue shall administer
and enforce the tax provisions of this Section, including
establishing procedures for retailers to accept exemption
certificates at the point of sale; providing guidance
regarding documentation and recordkeeping requirements;
conducting audits and compliance reviews; and recapturing any
improperly exempted taxes, including penalties and interest
where applicable. The Illinois Department of Revenue may adopt
rules to carry out the provisions of this subsection and
subsection (e) of this Section.
(20 ILCS 605/605-1122 new)

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Sec. 605-1122. Comprehensive planning and zoning
assistance.
(a) Subject to appropriation, the Department shall
establish a program to provide grants or matching grants to
units of local government for the purpose of developing,
updating, or implementing comprehensive plans, zoning
ordinances, or land use regulations consistent with the goals
of this Act.
(b) Grants awarded under this Section may be provided in
an amount not to exceed $25,000 per municipality or county,
with or without a local match of funds.
(c) Funds granted under this Section may be used for
comprehensive plan development or revision updates; zoning
ordinance modernization; housing needs assessments;
infrastructure planning related to residential growth; and
technical planning assistance.
(d) The Department shall adopt rules to carry out the
provisions of this Section.
Section 15. The Department of Labor Law of the Civil
Administrative Code of Illinois is amended by adding Section
1505-230 as follows:
(20 ILCS 1505/1505-230 new)
Sec. 1505-230. Workforce development and housing
construction pipeline. The Department may establish or support

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workforce development initiatives to expand the skilled labor
pool for residential construction, including:
(1) partnerships with community colleges, trade
schools and pre-approved apprenticeship programs
registered with the Office of Apprenticeship within the
United States Department of Labor's Employment and
Training Administration;
(2) training programs for construction trades and
building inspections; and
(3) incentives for participation in workforce housing
projects.
Section 20. The Department of Revenue Law of the Civil
Administrative Code of Illinois is amended by changing Section
2505-810 and by adding Section 2505-817 as follows:
(20 ILCS 2505/2505-810)
Sec. 2505-810. Veterans Property Tax Relief Reimbursement
Pilot Program.
(a) Subject to appropriation, for State fiscal years that
begin on or after July 1, 2023 and before July 1, 2030 2028,
the Department shall establish and administer a Veterans
Property Tax Relief Reimbursement Pilot Program. For purposes
of the Program, the Department shall reimburse eligible taxing
districts, in an amount calculated under subsection (c), for
revenue loss associated with providing homestead exemptions to

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veterans with disabilities. A taxing district is eligible for
reimbursement under this Section if (i) application of the
homestead exemptions for veterans with disabilities under
Sections 15-165 and 15-169 of the Property Tax Code results in
a cumulative reduction of more than 2.5% in the total
equalized assessed value of all taxable property in the taxing
district, when compared with the total equalized assessed
value of all taxable property in the taxing district prior to
the application of those exemptions, for the taxable year that
is 2 years before the start of the State fiscal year in which
the application for reimbursement is made and (ii) the taxing
district is located in whole or in part in a county that
contains a United States military base. Reimbursement payments
shall be made to the county that applies to the Department of
Revenue on behalf of the taxing district under subsection (b)
and shall be distributed by the county to the taxing district
as directed by the Department of Revenue.
(b) If the county clerk determines that one or more taxing
districts located in whole or in part in the county qualify for
reimbursement under this Section, then the county clerk shall
apply to the Department of Revenue on behalf of the taxing
district for reimbursement under this Section in the form and
manner required by the Department. The county clerk shall
consolidate applications submitted on behalf of more than one
taxing district into a single application. The Department of
Revenue may audit the information submitted by the county

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clerk as part of the application under this Section for the
purpose of verifying the accuracy of that information.
(c) Subject to the maximum aggregate reimbursement amount
set forth in this subsection, the amount of the reimbursement
shall be as follows:
(1) for reimbursements awarded for the fiscal year
that begins on July 1, 2023, 50% of the product generated
by multiplying 90% of the total dollar amount of
exemptions granted for taxable year 2021 under Section
15-165 or Section 15-169 of the Property Tax Code to
property located in the taxing district by the taxing
district's property tax rate for taxable year 2021; and
(2) for reimbursements awarded for fiscal years that
begin on or after July 1, 2024 and begin before July 1,
2030 2028, 100% of the product generated by multiplying
90% of the total dollar amount of exemptions granted for
the base year under Section 15-165 or Section 15-169 of
the Property Tax Code to property located in the taxing
district by the taxing district's property tax rate for
the base year.
The aggregate amount of reimbursements that may be awarded
under this Section for all taxing districts in any calendar
year may not exceed the lesser of $30,000,000 or the amount
appropriated for the program for that calendar year. If the
total amount of eligible reimbursements under this Section
exceeds the lesser of $30,000,000 or the amount appropriated

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for the program for that calendar year, then the reimbursement
amount awarded to each particular taxing district shall be
reduced on a pro rata basis until the aggregate amount of
reimbursements awarded under this Section for the calendar
year does not exceed the lesser of $30,000,000 or the amount
appropriated for the program for the calendar year.
(d) The Department of Revenue may adopt rules necessary
for the implementation of this Section.
(e) As used in this Section:
"Base year" means the taxable year that is 2 years before
the start of the State fiscal year in which the application for
reimbursement is made.
"Taxable year" means the calendar year during which
property taxes payable in the next succeeding year are levied.
"Taxing district" has the meaning given to that term in
Section 1-150 of the Property Tax Code.
(Source: P.A. 103-8, eff. 6-7-23; 103-588, eff. 6-5-24.)
(20 ILCS 2505/2505-817 new)
Sec. 2505-817. Administration of qualified residential
development building material tax exemption. The Department
shall:
(1) audit transactions involving building materials
exemption certificates issued pursuant to Section 5o of
the Retailers' Occupation Tax Act as provided in that
Section or as incorporated into the Use Tax Act, the

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Service Use Tax Act, or the Service Occupation Tax Act;
(2) assess and collect any taxes, penalties, and
interest due as a result of improper use of such
exemptions; and
(3) adopt rules necessary to implement and enforce
such provisions.
Section 25. The Illinois Housing Development Act is
amended by adding Sections 7.24i and 8.2 as follows:
(20 ILCS 3805/7.24i new)
Sec. 7.24i. Blight elimination and housing redevelopment.
(a) The Authority, in coordination with the Department of
Commerce and Economic Opportunity, may provide grants or
low-interest financing to units of local government for:
(1) demolition of abandoned or unsafe structures;
(2) environmental remediation where necessary; and
(3) site preparation for residential redevelopment.
(b) The Authority shall, to the extent consistent with
other applicable law, give priority to projects undertaken
pursuant to Section 605-1120 under the Department of Commerce
and Economic Opportunity Law of the Civil Administrative Code
of Illinois in the award of funding for housing,
infrastructure, and economic development programs under this
Section.
(c) The Authority, in coordination with the Department of

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Commerce and Economic Opportunity, may adopt rules to carry
out the provisions of this Section.
(20 ILCS 3805/8.2 new)
Sec. 8.2. Housing cost stability and insurance review. The
Authority, in coordination with the Department of Insurance,
shall evaluate and report to the General Assembly on barriers
to housing affordability related to property insurance
availability and cost; including:
(1) rising premiums for renters, property owners,
homeowners and landlords;
(2) impacts on housing development and rental pricing;
and
(3) opportunities to improve market stability and
affordability.
Section 30. The State Finance Act is amended by adding
Sections 5.1038, 5.1039, 6z-149, and 6z-150 as follows:
(30 ILCS 105/5.1038 new)
Sec. 5.1038. The Veterans Property Tax Relief
Reimbursement Pilot Program Fund.
(30 ILCS 105/5.1039 new)
Sec. 5.1039. The Middle Housing Incentive Fund.

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(30 ILCS 105/6z-149 new)
Sec. 6z-149. Middle Housing Incentive Fund.
(a) The Middle Housing Incentive Fund is created as a
special fund in the State treasury. The Fund may receive
revenue from any authorized source, including, but not limited
to, transfers and appropriations from other funds in the State
treasury. Any interest earned on moneys in the Fund shall be
retained in the Fund.
(b) Subject to appropriation, moneys in the Fund shall be
used for carrying out the Middle Income Housing Program
established under Section 605-1120 of the Department of
Commerce and Economic Opportunity Law of the Civil
Administrative Code of Illinois.
(30 ILCS 105/6z-150 new)
Sec. 6z-150. The Veterans Property Tax Relief
Reimbursement Pilot Program Fund.
(a) The Veterans Property Tax Relief Reimbursement Pilot
Program Fund is created as a special fund in the State
treasury. The first $30,000,000 of each fiscal year from the
proceeds of the Real Estate Transfer Tax imposed under Article
31 of the Property Tax Code shall be transferred into the Fund
for the purpose of funding the Veterans Property Tax Relief
Reimbursement Pilot Program under Section 2505-810 of the
Department of Revenue Law of the Civil Administrative Code of
Illinois.

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(b) Moneys transferred under this Section shall be used to
(i) reimburse units of local governments for revenue losses
associated with State-authorized veterans property tax
exemptions and to (ii) support full or partial payments in
accordance with the statutory formula governing the Veterans
Property Tax Relief Reimbursement Pilot Program.
Section 35. The State Revenue Sharing Act is amended by
changing Section 2 as follows:
(30 ILCS 115/2) (from Ch. 85, par. 612)
Sec. 2. Allocation and disbursement.
(a) As soon as may be after the first day of each month,
the Department of Revenue shall allocate among the several
municipalities and counties of this State the amount available
in the Local Government Distributive Fund and in the Income
Tax Surcharge Local Government Distributive Fund, determined
as provided in Sections 1 and 1a above. Except as provided in
Sections 13 and 13.1 of this Act, the Department shall then
certify such allocations to the State Comptroller, who shall
pay over to the several municipalities and counties the
respective amounts allocated to them. The amount of such Funds
allocable to each such municipality and county shall be in
proportion to the number of individual residents of such
municipality or county to the total population of the State,
determined in each case on the basis of the latest census of

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the State, municipality or county conducted by the Federal
government and certified by the Secretary of State and for
annexations to municipalities, the latest Federal, State or
municipal census of the annexed area which has been certified
by the Department of Revenue. Allocations to the City of
Chicago under this Section are subject to Section 6 of the
Hotel Operators' Occupation Tax Act. For the purpose of this
Section, the number of individual residents of a county shall
be reduced by the number of individuals residing therein in
municipalities, but the number of individual residents of the
State, county and municipality shall reflect the latest census
of any of them.
Notwithstanding any provision of law to the contrary, in
any fiscal year in which the amount of moneys allocated to the
Local Government Distributive Fund exceeds 8% of the net
revenue realized from the taxes imposed under the Illinois
Income Tax Act, a municipality or county may elect to receive
distributions of such excess amounts. The use of distributions
by municipalities and counties shall be subject to Section
8-11-25 of the Illinois Municipal Code and Section 5-2008 of
the Counties Code. If a county or municipality does not opt in
to receive excess distributions from the Local Government
Distributive Fund, the State Comptroller shall direct and the
State Treasurer shall transfer the excess moneys allocated to
the Local Government Distributive Fund to the General Revenue
Fund.

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(b) It is the intent of the General Assembly that
allocations made under this Section shall be made in a fair and
equitable manner. Accordingly, the clerk of any municipality
to which territory has been annexed, or from which territory
has been disconnected, shall notify the Department of Revenue
in writing of that annexation or disconnection and shall (1)
state the number of residents within the territory that was
annexed or disconnected, based on the last census conducted by
the federal, State, or municipal government and certified by
the Illinois Secretary of State, and (2) furnish therewith a
certified copy of the plat of annexation or, in the case of
disconnection, the ordinance, final judgment, or resolution of
disconnection together with an accurate depiction of the
territory disconnected. The county in which the annexed or
disconnected territory is located shall verify that the number
of residents stated on the written notice that is to be sent to
the Department of Revenue is true and accurate. The verified
statement of the county shall accompany the written notice.
However, if the county does not respond to the municipality's
request for verification within 30 days, this verification
requirement shall be waived. The written notice shall be
provided to the Department of Revenue (1) within 30 days after
the effective date of this amendatory Act of the 96th General
Assembly for disconnections occurring after January 1, 2007
and before the effective date of this amendatory Act of the
96th General Assembly or (2) within 30 days after the

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annexation or disconnection for annexations or disconnections
occurring on or after the effective date of this amendatory
Act of the 96th General Assembly. For purposes of this
Section, a disconnection or annexation through court order is
deemed to be effective 30 days after the entry of a final
judgment order, unless stayed pending appeal. Thereafter, the
monthly allocation made to the municipality and to any other
municipality or county affected by the annexation or
disconnection shall be adjusted in accordance with this
Section to reflect the change in residency of the residents of
the territory that was annexed or disconnected. The adjustment
shall be made no later than 30 days after the Department of
Revenue's receipt of the written notice of annexation or
disconnection described in this Section.
(Source: P.A. 104-6, eff. 6-16-25.)
Section 40. The Use Tax Act is amended by changing
Sections 3-10, 9, and 12 as follows:
(35 ILCS 105/3-10) from Ch. 120, par. 439.33-10
Sec. 3-10. Rate of tax. Unless otherwise provided in this
Section, the tax imposed by this Act is at the rate of 6.25% of
either the selling price or the fair market value, if any, of
the tangible personal property, which, on and after January 1,
2025, includes leases of tangible personal property. In all
cases where property functionally used or consumed is the same

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as the property that was purchased at retail, then the tax is
imposed on the selling price of the property. In all cases
where property functionally used or consumed is a by-product
or waste product that has been refined, manufactured, or
produced from property purchased at retail, then the tax is
imposed on the lower of the fair market value, if any, of the
specific property so used in this State or on the selling price
of the property purchased at retail. For purposes of this
Section "fair market value" means the price at which property
would change hands between a willing buyer and a willing
seller, neither being under any compulsion to buy or sell and
both having reasonable knowledge of the relevant facts. The
fair market value shall be established by Illinois sales by
the taxpayer of the same property as that functionally used or
consumed, or if there are no such sales by the taxpayer, then
comparable sales or purchases of property of like kind and
character in Illinois.
Beginning July 1, 2028, with respect to building materials
used in a qualified residential development, as defined in
Section 605-1121 of the Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois,
the tax is imposed at the rate of 1.25%.
Beginning on July 1, 2000 and through December 31, 2000,
with respect to motor fuel, as defined in Section 1.1 of the
Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
the Use Tax Act, the tax is imposed at the rate of 1.25%.

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Beginning on August 6, 2010 through August 15, 2010, and
beginning again on August 5, 2022 through August 14, 2022,
with respect to sales tax holiday items as defined in Section
3-6 of this Act, the tax is imposed at the rate of 1.25%.
With respect to gasohol, the tax imposed by this Act
applies to (i) 70% of the proceeds of sales made on or after
January 1, 1990, and before July 1, 2003, (ii) 80% of the
proceeds of sales made on or after July 1, 2003 and on or
before July 1, 2017, (iii) 100% of the proceeds of sales made
after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
the proceeds of sales made on or after January 1, 2024 and on
or before December 31, 2028, and (v) 100% of the proceeds of
sales made after December 31, 2028. If, at any time, however,
the tax under this Act on sales of gasohol is imposed at the
rate of 1.25%, then the tax imposed by this Act applies to 100%
of the proceeds of sales of gasohol made during that time.
With respect to mid-range ethanol blends, the tax imposed
by this Act applies to (i) 80% of the proceeds of sales made on
or after January 1, 2024 and on or before December 31, 2028 and
(ii) 100% of the proceeds of sales made thereafter. If, at any
time, however, the tax under this Act on sales of mid-range
ethanol blends is imposed at the rate of 1.25%, then the tax
imposed by this Act applies to 100% of the proceeds of sales of
mid-range ethanol blends made during that time.
With respect to majority blended ethanol fuel, the tax
imposed by this Act does not apply to the proceeds of sales

SB4200 - 26 - LRB104 21786 TRT 37479 b
made on or after July 1, 2003 and on or before December 31,
2028 but applies to 100% of the proceeds of sales made
thereafter.
With respect to biodiesel blends with no less than 1% and
no more than 10% biodiesel, the tax imposed by this Act applies
to (i) 80% of the proceeds of sales made on or after July 1,
2003 and on or before December 31, 2018 and (ii) 100% of the
proceeds of sales made after December 31, 2018 and before
January 1, 2024. On and after January 1, 2024 and on or before
December 31, 2030, the taxation of biodiesel, renewable
diesel, and biodiesel blends shall be as provided in Section
3-5.1. If, at any time, however, the tax under this Act on
sales of biodiesel blends with no less than 1% and no more than
10% biodiesel is imposed at the rate of 1.25%, then the tax
imposed by this Act applies to 100% of the proceeds of sales of
biodiesel blends with no less than 1% and no more than 10%
biodiesel made during that time.
With respect to biodiesel and biodiesel blends with more
than 10% but no more than 99% biodiesel, the tax imposed by
this Act does not apply to the proceeds of sales made on or
after July 1, 2003 and on or before December 31, 2023. On and
after January 1, 2024 and on or before December 31, 2030, the
taxation of biodiesel, renewable diesel, and biodiesel blends
shall be as provided in Section 3-5.1.
Until July 1, 2022 and from July 1, 2023 through December
31, 2025, with respect to food for human consumption that is to

SB4200 - 27 - LRB104 21786 TRT 37479 b
be consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption), the tax is imposed at the rate of 1%.
Beginning on July 1, 2022 and until July 1, 2023, with respect
to food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
food consisting of or infused with adult use cannabis, soft
drinks, and food that has been prepared for immediate
consumption), the tax is imposed at the rate of 0%. On and
after January 1, 2026, food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, candy, and food that has been
prepared for immediate consumption) is exempt from the tax
imposed by this Act.
With respect to prescription and nonprescription
medicines, drugs, medical appliances, products classified as
Class III medical devices by the United States Food and Drug
Administration that are used for cancer treatment pursuant to
a prescription, as well as any accessories and components
related to those devices, modifications to a motor vehicle for
the purpose of rendering it usable by a person with a
disability, and insulin, blood sugar testing materials,
syringes, and needles used by human diabetics, the tax is
imposed at the rate of 1%. For the purposes of this Section,

SB4200 - 28 - LRB104 21786 TRT 37479 b
until September 1, 2009: the term "soft drinks" means any
complete, finished, ready-to-use, non-alcoholic drink, whether
carbonated or not, including, but not limited to, soda water,
cola, fruit juice, vegetable juice, carbonated water, and all
other preparations commonly known as soft drinks of whatever
kind or description that are contained in any closed or sealed
bottle, can, carton, or container, regardless of size; but
"soft drinks" does not include coffee, tea, non-carbonated
water, infant formula, milk or milk products as defined in the
Grade A Pasteurized Milk and Milk Products Act, or drinks
containing 50% or more natural fruit or vegetable juice.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "soft drinks" means non-alcoholic
beverages that contain natural or artificial sweeteners. "Soft
drinks" does not include beverages that contain milk or milk
products, soy, rice or similar milk substitutes, or greater
than 50% of vegetable or fruit juice by volume.
Until August 1, 2009, and notwithstanding any other
provisions of this Act, "food for human consumption that is to
be consumed off the premises where it is sold" includes all
food sold through a vending machine, except soft drinks and
food products that are dispensed hot from a vending machine,
regardless of the location of the vending machine. Beginning
August 1, 2009, and notwithstanding any other provisions of
this Act, "food for human consumption that is to be consumed
off the premises where it is sold" includes all food sold

SB4200 - 29 - LRB104 21786 TRT 37479 b
through a vending machine, except soft drinks, candy, and food
products that are dispensed hot from a vending machine,
regardless of the location of the vending machine.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "food for human consumption that
is to be consumed off the premises where it is sold" does not
include candy. For purposes of this Section, "candy" means a
preparation of sugar, honey, or other natural or artificial
sweeteners in combination with chocolate, fruits, nuts or
other ingredients or flavorings in the form of bars, drops, or
pieces. "Candy" does not include any preparation that contains
flour or requires refrigeration.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "nonprescription medicines and
drugs" does not include grooming and hygiene products. For
purposes of this Section, "grooming and hygiene products"
includes, but is not limited to, soaps and cleaning solutions,
shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
lotions and screens, unless those products are available by
prescription only, regardless of whether the products meet the
definition of "over-the-counter-drugs". For the purposes of
this paragraph, "over-the-counter-drug" means a drug for human
use that contains a label that identifies the product as a drug
as required by 21 CFR 201.66. The "over-the-counter-drug"
label includes:
(A) a "Drug Facts" panel; or

SB4200 - 30 - LRB104 21786 TRT 37479 b
(B) a statement of the "active ingredient(s)" with a
list of those ingredients contained in the compound,
substance or preparation.
Beginning on January 1, 2014 (the effective date of Public
Act 98-122), "prescription and nonprescription medicines and
drugs" includes medical cannabis purchased from a registered
dispensing organization under the Compassionate Use of Medical
Cannabis Program Act.
As used in this Section, "adult use cannabis" means
cannabis subject to tax under the Cannabis Cultivation
Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
and does not include cannabis subject to tax under the
Compassionate Use of Medical Cannabis Program Act.
If the property that is purchased at retail from a
retailer is acquired outside Illinois and used outside
Illinois before being brought to Illinois for use here and is
taxable under this Act, the "selling price" on which the tax is
computed shall be reduced by an amount that represents a
reasonable allowance for depreciation for the period of prior
out-of-state use. No depreciation is allowed in cases where
the tax under this Act is imposed on lease receipts.
(Source: P.A. 103-9, eff. 6-7-23; 103-154, eff. 6-30-23;
103-592, eff. 1-1-25; 103-781, eff. 8-5-24; 104-417, eff.
8-15-25.)
(35 ILCS 105/9)

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(Text of Section before amendment by P.A. 104-457)
Sec. 9. Except as to motor vehicles, watercraft, aircraft,
and trailers that are required to be registered with an agency
of this State, each retailer required or authorized to collect
the tax imposed by this Act shall pay to the Department the
amount of such tax (except as otherwise provided) at the time
when he is required to file his return for the period during
which such tax was collected, less a discount of 2.1% prior to
January 1, 1990, and 1.75% on and after January 1, 1990, or $5
per calendar year, whichever is greater, which is allowed to
reimburse the retailer for expenses incurred in collecting the
tax, keeping records, preparing and filing returns, remitting
the tax and supplying data to the Department on request.
Beginning with returns due on or after January 1, 2025, the
discount allowed in this Section, the Retailers' Occupation
Tax Act, the Service Occupation Tax Act, and the Service Use
Tax Act, including any local tax administered by the
Department and reported on the same return, shall not exceed
$1,000 per month in the aggregate for returns other than
transaction returns filed during the month. When determining
the discount allowed under this Section, retailers shall
include the amount of tax that would have been due at the 6.25%
rate but for the 1.25% rate imposed on sales tax holiday items
under Public Act 102-700. The discount under this Section is
not allowed for the 1.25% portion of taxes paid on aviation
fuel that is subject to the revenue use requirements of 49

SB4200 - 32 - LRB104 21786 TRT 37479 b
U.S.C. 47107(b) and 49 U.S.C. 47133. When determining the
discount allowed under this Section, retailers shall include
the amount of tax that would have been due at the 1% rate but
for the 0% rate imposed under Public Act 102-700. In the case
of retailers who report and pay the tax on a transaction by
transaction basis, as provided in this Section, such discount
shall be taken with each such tax remittance instead of when
such retailer files his periodic return, but, beginning with
returns due on or after January 1, 2025, the discount allowed
under this Section and the Retailers' Occupation Tax Act,
including any local tax administered by the Department and
reported on the same transaction return, shall not exceed
$1,000 per month for all transaction returns filed during the
month. The discount allowed under this Section is allowed only
for returns that are filed in the manner required by this Act.
The Department may disallow the discount for retailers whose
certificate of registration is revoked at the time the return
is filed, but only if the Department's decision to revoke the
certificate of registration has become final. A retailer need
not remit that part of any tax collected by him to the extent
that he is required to remit and does remit the tax imposed by
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

SB4200 - 33 - LRB104 21786 TRT 37479 b
extended beyond the close of the period for which the return is
filed, the retailer, in collecting the tax (except as to motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State), may collect for
each tax return period only the tax applicable to that part of
the selling price actually received during such tax return
period.
In the case of leases, except as otherwise provided in
this Act, the lessor, in collecting the tax, may collect for
each tax return period only the tax applicable to that part of
the selling price actually received during such tax return
period.
Except as provided in this Section, on or before the
twentieth day of each calendar month, such retailer shall file
a return for the preceding calendar month. Such return shall
be filed on forms prescribed by the Department and shall
furnish such information as the Department may reasonably
require. The return shall include the gross receipts on food
for human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, food
consisting of or infused with adult use cannabis, soft drinks,
and food that has been prepared for immediate consumption)
which were received during the preceding calendar month,
quarter, or year, as appropriate, and upon which tax would
have been due but for the 0% rate imposed under Public Act
102-700. The return shall also include the amount of tax that

SB4200 - 34 - LRB104 21786 TRT 37479 b
would have been due on food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption) but for the 0% rate imposed under
Public Act 102-700.
On and after January 1, 2018, except for returns required
to be filed prior to January 1, 2023 for motor vehicles,
watercraft, aircraft, and trailers that are required to be
registered with an agency of this State, with respect to
retailers whose annual gross receipts average $20,000 or more,
all returns required to be filed pursuant to this Act shall be
filed electronically. On and after January 1, 2023, with
respect to retailers whose annual gross receipts average
$20,000 or more, all returns required to be filed pursuant to
this Act, including, but not limited to, returns for motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State, shall be filed
electronically. Retailers who demonstrate that they do not
have access to the Internet or demonstrate hardship in filing
electronically may petition the Department to waive the
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

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taxpayer shall also file a return with the Department for each
of the first 2 two months of each calendar quarter, on or
before the twentieth day of the following calendar month,
stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in the business of selling tangible
personal property at retail in this State;
3. The total amount of taxable receipts received by
him during the preceding calendar month from sales of
tangible personal property by him during such preceding
calendar month, including receipts from charge and time
sales, but less all deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the Department
may require.
Each retailer required or authorized to collect the tax
imposed by this Act on aviation fuel sold at retail in this
State during the preceding calendar month shall, instead of
reporting and paying tax on aviation fuel as otherwise
required by this Section, report and pay such tax on a separate
aviation fuel tax return. The requirements related to the
return shall be as otherwise provided in this Section.

SB4200 - 36 - LRB104 21786 TRT 37479 b
Notwithstanding any other provisions of this Act to the
contrary, retailers collecting tax on aviation fuel shall file
all aviation fuel tax returns and shall make all aviation fuel
tax payments by electronic means in the manner and form
required by the Department. For purposes of this Section,
"aviation fuel" means jet fuel and aviation gasoline.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Notwithstanding any other provision of this Act to the
contrary, retailers subject to tax on cannabis shall file all
cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall
make all payments required by rules of the Department by
electronic funds transfer. Beginning October 1, 1995, a
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

SB4200 - 37 - LRB104 21786 TRT 37479 b
more shall make all payments required by rules of the
Department by electronic funds transfer. The term "annual tax
liability" shall be the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year. The term "average monthly
tax liability" means the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year divided by 12. Beginning
on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the
Department of Revenue Law shall make all payments required by
rules of the Department by electronic funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make
payments by electronic funds transfer. All taxpayers required
to make payments by electronic funds transfer shall make those
payments for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those
payments in the manner authorized by the Department.

SB4200 - 38 - LRB104 21786 TRT 37479 b
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
Before October 1, 2000, if the taxpayer's average monthly
tax liability to the Department under this Act, the Retailers'
Occupation Tax Act, the Service Occupation Tax Act, the
Service Use Tax Act was $10,000 or more during the preceding 4
complete calendar quarters, he shall file a return with the
Department each month by the 20th day of the month next
following the month during which such tax liability is
incurred and shall make payments to the Department on or
before the 7th, 15th, 22nd and last day of the month during
which such liability is incurred. On and after October 1,
2000, if the taxpayer's average monthly tax liability to the
Department under this Act, the Retailers' Occupation Tax Act,
the Service Occupation Tax Act, and the Service Use Tax Act was
$20,000 or more during the preceding 4 complete calendar
quarters, he shall file a return with the Department each
month by the 20th day of the month next following the month
during which such tax liability is incurred and shall make
payment to the Department on or before the 7th, 15th, 22nd and
last day of the month during which such liability is incurred.
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

SB4200 - 39 - LRB104 21786 TRT 37479 b
average monthly liability of the taxpayer to the Department
for the preceding 4 complete calendar quarters (excluding the
month of highest liability and the month of lowest liability
in such 4 quarter period). If the month during which such tax
liability is incurred begins on or after January 1, 1985, and
prior to January 1, 1987, each payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the
month or 27.5% of the taxpayer's liability for the same
calendar month of the preceding year. If the month during
which such tax liability is incurred begins on or after
January 1, 1987, and prior to January 1, 1988, each payment
shall be in an amount equal to 22.5% of the taxpayer's actual
liability for the month or 26.25% of the taxpayer's liability
for the same calendar month of the preceding year. If the month
during which such tax liability is incurred begins on or after
January 1, 1988, and prior to January 1, 1989, or begins on or
after January 1, 1996, each payment shall be in an amount equal
to 22.5% of the taxpayer's actual liability for the month or
25% of the taxpayer's liability for the same calendar month of
the preceding year. If the month during which such tax
liability is incurred begins on or after January 1, 1989, and
prior to January 1, 1996, each payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the
month or 25% of the taxpayer's liability for the same calendar
month of the preceding year or 100% of the taxpayer's actual
liability for the quarter monthly reporting period. The amount

SB4200 - 40 - LRB104 21786 TRT 37479 b
of such quarter monthly payments shall be credited against the
final tax liability of the taxpayer's return for that month.
Before October 1, 2000, once applicable, the requirement of
the making of quarter monthly payments to the Department shall
continue until such taxpayer's average monthly liability to
the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the
month of lowest liability) is less than $9,000, or until such
taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $10,000. However, if a
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $10,000
threshold stated above, then such taxpayer may petition the
Department for change in such taxpayer's reporting status. On
and after October 1, 2000, once applicable, the requirement of
the making of quarter monthly payments to the Department shall
continue until such taxpayer's average monthly liability to
the Department during the preceding 4 complete calendar
quarters (excluding the month of highest liability and the
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

SB4200 - 41 - LRB104 21786 TRT 37479 b
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $20,000
threshold stated above, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status.
The Department shall change such taxpayer's reporting status
unless it finds that such change is seasonal in nature and not
likely to be long term. Quarter monthly payment status shall
be determined under this paragraph as if the rate reduction to
1.25% in Public Act 102-700 on sales tax holiday items had not
occurred. For quarter monthly payments due on or after July 1,
2023 and through June 30, 2024, "25% of the taxpayer's
liability for the same calendar month of the preceding year"
shall be determined as if the rate reduction to 1.25% in Public
Act 102-700 on sales tax holiday items had not occurred.
Quarter monthly payment status shall be determined under this
paragraph as if the rate reduction to 0% in Public Act 102-700
on food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
food consisting of or infused with adult use cannabis, soft
drinks, and food that has been prepared for immediate
consumption) had not occurred. For quarter monthly payments
due under this paragraph on or after July 1, 2023 and through
June 30, 2024, "25% of the taxpayer's liability for the same
calendar month of the preceding year" shall be determined as

SB4200 - 42 - LRB104 21786 TRT 37479 b
if the rate reduction to 0% in Public Act 102-700 had not
occurred. If any such quarter monthly payment is not paid at
the time or in the amount required by this Section, then the
taxpayer shall be liable for penalties and interest on the
difference between the minimum amount due and the amount of
such quarter monthly payment actually and timely paid, except
insofar as the taxpayer has previously made payments for that
month to the Department in excess of the minimum payments
previously due as provided in this Section. The Department
shall make reasonable rules and regulations to govern the
quarter monthly payment amount and quarter monthly payment
dates for taxpayers who file on other than a calendar monthly
basis.
If any such payment provided for in this Section exceeds
the taxpayer's liabilities under this Act, the Retailers'
Occupation Tax Act, the Service Occupation Tax Act and the
Service Use Tax Act, as shown by an original monthly return,
the Department shall issue to the taxpayer a credit memorandum
no later than 30 days after the date of payment, which
memorandum may be submitted by the taxpayer to the Department
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

SB4200 - 43 - LRB104 21786 TRT 37479 b
payment is shown on an original monthly return and is made
after December 31, 1986, no credit memorandum shall be issued,
unless requested by the taxpayer. If no such request is made,
the taxpayer may credit such excess payment against tax
liability subsequently to be remitted by the taxpayer to the
Department under this Act, the Retailers' Occupation Tax Act,
the Service Occupation Tax Act or the Service Use Tax Act, in
accordance with reasonable rules and regulations prescribed by
the Department. If the Department subsequently determines that
all or any part of the credit taken was not actually due to the
taxpayer, the taxpayer's vendor's discount shall be reduced,
if necessary, to reflect the difference between the credit
taken and that actually due, and the taxpayer shall be liable
for penalties and interest on such difference.
If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February, and March of a given
year being due by April 20 of such year; with the return for
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

SB4200 - 44 - LRB104 21786 TRT 37479 b
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
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

SB4200 - 45 - LRB104 21786 TRT 37479 b
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 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

SB4200 - 46 - LRB104 21786 TRT 37479 b
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 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

SB4200 - 47 - LRB104 21786 TRT 37479 b
price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 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
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.

SB4200 - 48 - LRB104 21786 TRT 37479 b
With each such transaction reporting return, the retailer
shall remit the proper amount of tax due (or shall submit
satisfactory evidence that the sale is not taxable if that is
the case), to the Department or its agents, whereupon the
Department shall issue, in the purchaser's name, a 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
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

SB4200 - 49 - LRB104 21786 TRT 37479 b
of such delay by the retailer, and may (upon the Department
being satisfied of the truth of such certification) transmit
the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to
the Department and obtain his tax receipt or exemption
determination, in which event the transaction reporting return
and tax remittance (if a tax payment was required) shall be
credited by the Department to the proper retailer's account
with the Department, but without the vendor's discount
provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the
same amount and in the same form in which it would be remitted
if the tax had been remitted to the Department by the retailer.
On and after January 1, 2025, with respect to the lease of
trailers, other than semitrailers as defined in Section 1-187
of the Illinois Vehicle Code, that are required to be
registered with an agency of this State and that are subject to
the tax on lease receipts under this Act, notwithstanding any
other provision of this Act to the contrary, for the purpose of
reporting and paying tax under this Act on those lease
receipts, lessors shall file returns in addition to and
separate from the transaction reporting return. Lessors shall
file those lease returns and make payment to the Department by
electronic means on or before the 20th day of each month
following the month, quarter, or year, as applicable, in which
lease receipts were received. All lease receipts received by

SB4200 - 50 - LRB104 21786 TRT 37479 b
the lessor from the lease of those trailers during the same
reporting period shall be reported and tax shall be paid on a
single return form to be prescribed by the Department.
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

SB4200 - 51 - LRB104 21786 TRT 37479 b
return.
If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable retailers, who are required to file
returns hereunder and also under the Retailers' Occupation Tax
Act, to furnish all the return information required by both
Acts on the one form.
Where the retailer has more than one business registered
with the Department under separate registration under this
Act, such retailer may not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund, a special
fund in the State treasury which is hereby created, the net
revenue realized for the preceding month from the 1% tax
imposed under this Act.
Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund 4% of the
net revenue realized for the preceding month from the 6.25%
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

SB4200 - 52 - LRB104 21786 TRT 37479 b
fund in the State treasury, 20% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property, other than (i) tangible
personal property which is purchased outside Illinois at
retail from a retailer and which is titled or registered by an
agency of this State's government and (ii) aviation fuel sold
on or after December 1, 2019. This exception for aviation fuel
only applies for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be
required for refunds of the 20% portion of the tax on aviation
fuel under this Act, which amount shall be deposited into the
Aviation Fuel Sales Tax Refund Fund. The Department shall only
pay moneys into the State Aviation Program Fund and the
Aviation Fuels Sales Tax Refund Fund under this Act for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 100% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol. If, in any
month, the tax on sales tax holiday items, as defined in

SB4200 - 53 - LRB104 21786 TRT 37479 b
Section 3-6, is imposed at the rate of 1.25%, then the
Department shall pay 100% of the net revenue realized for that
month from the 1.25% rate on the selling price of sales tax
holiday items into the State and Local Sales Tax Reform Fund.
Beginning July 1, 2028, 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 building materials for qualified
residential developments.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the net revenue
realized for the preceding month from the 6.25% general rate
on the selling price of tangible personal property which is
purchased outside Illinois at retail from a retailer and which
is titled or registered by an agency of this State's
government.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2011, each month the Department shall
pay into the Clean Air Act Permit Fund 80% of the net revenue
realized for the preceding month from the 6.25% general rate

SB4200 - 54 - LRB104 21786 TRT 37479 b
on the selling price of sorbents used in Illinois in the
process of sorbent injection as used to comply with the
Environmental Protection Act or the federal Clean Air Act, but
the total payment into the Clean Air Act Permit Fund under this
Act and the Retailers' Occupation Tax Act shall not exceed
$2,000,000 in any fiscal year.
Beginning July 1, 2013, each month the Department shall
pay into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Service Use Tax Act, the Service
Occupation Tax Act, and the Retailers' Occupation Tax Act an
amount equal to the average monthly deficit in the Underground
Storage Tank Fund during the prior year, as certified annually
by the Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Service Use Tax Act, the Service Occupation Tax Act, and
the Retailers' Occupation Tax Act shall not exceed $18,000,000
in any State fiscal year. As used in this paragraph, the
"average monthly deficit" shall be equal to the difference
between the average monthly claims for payment by the fund and
the average monthly revenues deposited into the fund,
excluding payments made pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under this Act, the Service Use Tax
Act, the Service Occupation Tax Act, and the Retailers'
Occupation Tax Act, each month the Department shall deposit
$500,000 into the State Crime Laboratory Fund.

SB4200 - 55 - LRB104 21786 TRT 37479 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 Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Bond Account
in the Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
than 1/12 of the Annual Specified Amount, an amount equal to

SB4200 - 56 - LRB104 21786 TRT 37479 b
the difference shall be immediately paid into the Build
Illinois Fund from other moneys received by the Department
pursuant to the Tax Acts; and, further provided, that in no
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture
securing Bonds issued and outstanding pursuant to the Build
Illinois Bond Act is sufficient, taking into account any
future investment income, to fully provide, in accordance with
such indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited into 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

SB4200 - 57 - LRB104 21786 TRT 37479 b
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
Expansion Project Fund in the specified fiscal years.

SB4200 - 58 - LRB104 21786 TRT 37479 b
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
2017 199,000,000

SB4200 - 59 - LRB104 21786 TRT 37479 b
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 300,000,000
2022 300,000,000
2023 300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034 375,000,000
2035 375,000,000
2036 450,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,

SB4200 - 60 - LRB104 21786 TRT 37479 b
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, for aviation fuel sold on or after December 1, 2019,
the Department shall each month deposit into the Aviation Fuel
Sales Tax Refund Fund an amount estimated by the Department to
be required for refunds of the 80% portion of the tax on
aviation fuel under this Act. The Department shall only
deposit moneys into the Aviation Fuel Sales Tax Refund Fund
under this paragraph for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are

SB4200 - 61 - LRB104 21786 TRT 37479 b
binding on the State.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois
Tax Increment Fund 0.27% of 80% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, and the Energy Infrastructure Fund
pursuant to the preceding paragraphs or in any amendments to
this Section hereafter enacted, beginning on the first day of
the first calendar month to occur on or after August 26, 2014
(the effective date of Public Act 98-1098), each month, from
the collections made under Section 9 of the Use Tax Act,
Section 9 of the Service Use Tax Act, Section 9 of the Service
Occupation Tax Act, and Section 3 of the Retailers' Occupation
Tax Act, the Department shall pay into the Tax Compliance and
Administration Fund, to be used, subject to appropriation, to
fund additional auditors and compliance personnel at the
Department of Revenue, an amount equal to 1/12 of 5% of 80% of
the cash receipts collected during the preceding fiscal year
by the Audit Bureau of the Department under the Use Tax Act,
the Service Use Tax Act, the Service Occupation Tax Act, the

SB4200 - 62 - LRB104 21786 TRT 37479 b
Retailers' Occupation Tax Act, and associated local occupation
and use taxes administered by the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, and the Tax Compliance and Administration
Fund as provided in this Section, beginning on July 1, 2018 the
Department shall pay each month into the Downstate Public
Transportation Fund the moneys required to be so paid under
Section 2-3 of the Downstate Public Transportation Act.
Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim, and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.

SB4200 - 63 - LRB104 21786 TRT 37479 b
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year............................Total Deposit
2024....................................$200,000,000
2025....................................$206,000,000
2026....................................$212,200,000
2027....................................$218,500,000
2028....................................$225,100,000
2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000
2034....................................$341,200,000
2035....................................$351,400,000
2036....................................$361,900,000
2037....................................$372,800,000
2038....................................$384,000,000
2039....................................$395,500,000
2040....................................$407,400,000
2041....................................$419,600,000
2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to

SB4200 - 64 - LRB104 21786 TRT 37479 b
the payment of amounts into the State and Local Sales Tax
Reform Fund, the Build Illinois Fund, the McCormick Place
Expansion Project Fund, the Illinois Tax Increment Fund, and
the Tax Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 16% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2022 and until July 1, 2023, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 32% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2023 and until July 1, 2024, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 48% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2024 and until July 1, 2026, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion

SB4200 - 65 - LRB104 21786 TRT 37479 b
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 64% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning on July 1, 2026, subject to the payment of amounts
into the State and Local Sales Tax Reform Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 80% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. As used in this
paragraph, "motor fuel" has the meaning given to that term in
Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the
meaning given to that term in Section 3-40 of this Act.
Until July 1, 2025, of the remainder of the moneys
received by the Department pursuant to this Act, 75% thereof
shall be paid into the State treasury and 25% shall be reserved
in a special account and used only for the transfer to the
Common School Fund as part of the monthly transfer from the
General Revenue Fund in accordance with Section 8a of the
State Finance Act. Beginning July 1, 2025, of the remainder of
the moneys received by the Department pursuant to this Act,
75% shall be deposited into the General Revenue Fund and 25%
shall be deposited into the Common School Fund.

SB4200 - 66 - LRB104 21786 TRT 37479 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.
For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to
such sales, if the retailers who are affected do not make
written objection to the Department to this arrangement.
(Source: P.A. 103-154, eff. 6-30-23; 103-363, eff. 7-28-23;
103-592, Article 75, Section 75-5, eff. 1-1-25; 103-592,
Article 110, Section 110-5, eff. 6-7-24; 103-1055, eff.
12-20-24; 104-6, Article 5, Section 5-10, eff. 6-16-25; 104-6,
Article 35, Section 35-20, eff. 6-16-25; revised 1-12-26.)
(Text of Section after amendment by P.A. 104-457)
Sec. 9. Except as to motor vehicles, watercraft, aircraft,

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and trailers that are required to be registered with an agency
of this State, each retailer required or authorized to collect
the tax imposed by this Act shall pay to the Department the
amount of such tax (except as otherwise provided) at the time
when he is required to file his return for the period during
which such tax was collected, less a discount of 2.1% prior to
January 1, 1990, and 1.75% on and after January 1, 1990, or $5
per calendar year, whichever is greater, which is allowed to
reimburse the retailer for expenses incurred in collecting the
tax, keeping records, preparing and filing returns, remitting
the tax and supplying data to the Department on request.
Beginning with returns due on or after January 1, 2025, the
discount allowed in this Section, the Retailers' Occupation
Tax Act, the Service Occupation Tax Act, and the Service Use
Tax Act, including any local tax administered by the
Department and reported on the same return, shall not exceed
$1,000 per month in the aggregate for returns other than
transaction returns filed during the month. When determining
the discount allowed under this Section, retailers shall
include the amount of tax that would have been due at the 6.25%
rate but for the 1.25% rate imposed on sales tax holiday items
under Public Act 102-700. The discount under this Section is
not allowed for the 1.25% portion of taxes paid on aviation
fuel that is subject to the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133. When determining the
discount allowed under this Section, retailers shall include

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the amount of tax that would have been due at the 1% rate but
for the 0% rate imposed under Public Act 102-700. In the case
of retailers who report and pay the tax on a transaction by
transaction basis, as provided in this Section, such discount
shall be taken with each such tax remittance instead of when
such retailer files his periodic return, but, beginning with
returns due on or after January 1, 2025, the discount allowed
under this Section and the Retailers' Occupation Tax Act,
including any local tax administered by the Department and
reported on the same transaction return, shall not exceed
$1,000 per month for all transaction returns filed during the
month. The discount allowed under this Section is allowed only
for returns that are filed in the manner required by this Act.
The Department may disallow the discount for retailers whose
certificate of registration is revoked at the time the return
is filed, but only if the Department's decision to revoke the
certificate of registration has become final. A retailer need
not remit that part of any tax collected by him to the extent
that he is required to remit and does remit the tax imposed by
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

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vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State), may collect for
each tax return period only the tax applicable to that part of
the selling price actually received during such tax return
period.
In the case of leases, except as otherwise provided in
this Act, the lessor, in collecting the tax, may collect for
each tax return period only the tax applicable to that part of
the selling price actually received during such tax return
period.
Except as provided in this Section, on or before the
twentieth day of each calendar month, such retailer shall file
a return for the preceding calendar month. Such return shall
be filed on forms prescribed by the Department and shall
furnish such information as the Department may reasonably
require. The return shall include the gross receipts on food
for human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, food
consisting of or infused with adult use cannabis, soft drinks,
and food that has been prepared for immediate consumption)
which were received during the preceding calendar month,
quarter, or year, as appropriate, and upon which tax would
have been due but for the 0% rate imposed under Public Act
102-700. The return shall also include the amount of tax that
would have been due on food for human consumption that is to be
consumed off the premises where it is sold (other than

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alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption) but for the 0% rate imposed under
Public Act 102-700.
On and after January 1, 2018, except for returns required
to be filed prior to January 1, 2023 for motor vehicles,
watercraft, aircraft, and trailers that are required to be
registered with an agency of this State, with respect to
retailers whose annual gross receipts average $20,000 or more,
all returns required to be filed pursuant to this Act shall be
filed electronically. On and after January 1, 2023, with
respect to retailers whose annual gross receipts average
$20,000 or more, all returns required to be filed pursuant to
this Act, including, but not limited to, returns for motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State, shall be filed
electronically. Retailers who demonstrate that they do not
have access to the Internet or demonstrate hardship in filing
electronically may petition the Department to waive the
electronic filing requirement.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first 2 months of each calendar quarter, on or before

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the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in the business of selling tangible
personal property at retail in this State;
3. The total amount of taxable receipts received by
him during the preceding calendar month from sales of
tangible personal property by him during such preceding
calendar month, including receipts from charge and time
sales, but less all deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the Department
may require.
Each retailer required or authorized to collect the tax
imposed by this Act on aviation fuel sold at retail in this
State during the preceding calendar month shall, instead of
reporting and paying tax on aviation fuel as otherwise
required by this Section, report and pay such tax on a separate
aviation fuel tax return. The requirements related to the
return shall be as otherwise provided in this Section.
Notwithstanding any other provisions of this Act to the
contrary, retailers collecting tax on aviation fuel shall file
all aviation fuel tax returns and shall make all aviation fuel

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tax payments by electronic means in the manner and form
required by the Department. For purposes of this Section,
"aviation fuel" means jet fuel and aviation gasoline.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Notwithstanding any other provision of this Act to the
contrary, retailers subject to tax on cannabis shall file all
cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall
make all payments required by rules of the Department by
electronic funds transfer. Beginning October 1, 1995, a
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

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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
requirements of this Section.

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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 calendar quarters (excluding the
month of highest liability and the month of lowest liability

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in such 4 quarter period). If the month during which such tax
liability is incurred begins on or after January 1, 1985, and
prior to January 1, 1987, each payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the
month or 27.5% of the taxpayer's liability for the same
calendar month of the preceding year. If the month during
which such tax liability is incurred begins on or after
January 1, 1987, and prior to January 1, 1988, each payment
shall be in an amount equal to 22.5% of the taxpayer's actual
liability for the month or 26.25% of the taxpayer's liability
for the same calendar month of the preceding year. If the month
during which such tax liability is incurred begins on or after
January 1, 1988, and prior to January 1, 1989, or begins on or
after January 1, 1996, each payment shall be in an amount equal
to 22.5% of the taxpayer's actual liability for the month or
25% of the taxpayer's liability for the same calendar month of
the preceding year. If the month during which such tax
liability is incurred begins on or after January 1, 1989, and
prior to January 1, 1996, each payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the
month or 25% of the taxpayer's liability for the same calendar
month of the preceding year or 100% of the taxpayer's actual
liability for the quarter monthly reporting period. The amount
of such quarter monthly payments shall be credited against the
final tax liability of the taxpayer's return for that month.
Before October 1, 2000, once applicable, the requirement of

SB4200 - 76 - LRB104 21786 TRT 37479 b
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 which causes the taxpayer
to anticipate that his average monthly tax liability for the

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reasonably foreseeable future will fall below the $20,000
threshold stated above, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status.
The Department shall change such taxpayer's reporting status
unless it finds that such change is seasonal in nature and not
likely to be long term. Quarter monthly payment status shall
be determined under this paragraph as if the rate reduction to
1.25% in Public Act 102-700 on sales tax holiday items had not
occurred. For quarter monthly payments due on or after July 1,
2023 and through June 30, 2024, "25% of the taxpayer's
liability for the same calendar month of the preceding year"
shall be determined as if the rate reduction to 1.25% in Public
Act 102-700 on sales tax holiday items had not occurred.
Quarter monthly payment status shall be determined under this
paragraph as if the rate reduction to 0% in Public Act 102-700
on food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
food consisting of or infused with adult use cannabis, soft
drinks, and food that has been prepared for immediate
consumption) had not occurred. For quarter monthly payments
due under this paragraph on or after July 1, 2023 and through
June 30, 2024, "25% of the taxpayer's liability for the same
calendar month of the preceding year" shall be determined as
if the rate reduction to 0% in Public Act 102-700 had not
occurred. If any such quarter monthly payment is not paid at
the time or in the amount required by this Section, then the

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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
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,

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the taxpayer may credit such excess payment against tax
liability subsequently to be remitted by the taxpayer to the
Department under this Act, the Retailers' Occupation Tax Act,
the Service Occupation Tax Act or the Service Use Tax Act, in
accordance with reasonable rules and regulations prescribed by
the Department. If the Department subsequently determines that
all or any part of the credit taken was not actually due to the
taxpayer, the taxpayer's vendor's discount shall be reduced,
if necessary, to reflect the difference between the credit
taken and that actually due, and the taxpayer shall be liable
for penalties and interest on such difference.
If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February, and March of a given
year being due by April 20 of such year; with the return for
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

SB4200 - 80 - LRB104 21786 TRT 37479 b
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
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

SB4200 - 81 - LRB104 21786 TRT 37479 b
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 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

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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 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

SB4200 - 83 - LRB104 21786 TRT 37479 b
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
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

SB4200 - 84 - LRB104 21786 TRT 37479 b
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
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

SB4200 - 85 - LRB104 21786 TRT 37479 b
and the remittance for tax or proof of exemption directly to
the Department and obtain his tax receipt or exemption
determination, in which event the transaction reporting return
and tax remittance (if a tax payment was required) shall be
credited by the Department to the proper retailer's account
with the Department, but without the vendor's discount
provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the
same amount and in the same form in which it would be remitted
if the tax had been remitted to the Department by the retailer.
On and after January 1, 2025, with respect to the lease of
trailers, other than semitrailers as defined in Section 1-187
of the Illinois Vehicle Code, that are required to be
registered with an agency of this State and that are subject to
the tax on lease receipts under this Act, notwithstanding any
other provision of this Act to the contrary, for the purpose of
reporting and paying tax under this Act on those lease
receipts, lessors shall file returns in addition to and
separate from the transaction reporting return. Lessors shall
file those lease returns and make payment to the Department by
electronic means on or before the 20th day of each month
following the month, quarter, or year, as applicable, in which
lease receipts were received. All lease receipts received by
the lessor from the lease of those trailers during the same
reporting period shall be reported and tax shall be paid on a
single return form to be prescribed by the Department.

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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.
If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint

SB4200 - 87 - LRB104 21786 TRT 37479 b
return which will enable retailers, who are required to file
returns hereunder and also under the Retailers' Occupation Tax
Act, to furnish all the return information required by both
Acts on the one form.
Where the retailer has more than one business registered
with the Department under separate registration under this
Act, such retailer may not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund, a special
fund in the State treasury which is hereby created, the net
revenue realized for the preceding month from the 1% tax
imposed under this Act.
Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund 4% of the
net revenue realized for the preceding month from the 6.25%
general rate on the selling price of tangible personal
property which is purchased outside Illinois at retail from a
retailer and which is titled or registered by an agency of this
State's government.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund, a special
fund in the State treasury, 20% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property, other than (i) tangible

SB4200 - 88 - LRB104 21786 TRT 37479 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 and (ii) aviation fuel sold
on or after December 1, 2019. This exception for aviation fuel
only applies for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be
required for refunds of the 20% portion of the tax on aviation
fuel under this Act, which amount shall be deposited into the
Aviation Fuel Sales Tax Refund Fund. The Department shall only
pay moneys into the State Aviation Program Fund and the
Aviation Fuels Sales Tax Refund Fund under this Act for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 100% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol. If, in any
month, the tax on sales tax holiday items, as defined in
Section 3-6, is imposed at the rate of 1.25%, then the
Department shall pay 100% of the net revenue realized for that
month from the 1.25% rate on the selling price of sales tax

SB4200 - 89 - LRB104 21786 TRT 37479 b
holiday items into the State and Local Sales Tax Reform Fund.
Beginning July 1, 2028, 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 building materials for qualified
residential developments.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the net revenue
realized for the preceding month from the 6.25% general rate
on the selling price of tangible personal property which is
purchased outside Illinois at retail from a retailer and which
is titled or registered by an agency of this State's
government.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2011, each month the Department shall
pay into the Clean Air Act Permit Fund 80% of the net revenue
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

SB4200 - 90 - LRB104 21786 TRT 37479 b
the total payment into the Clean Air Act Permit Fund under this
Act and the Retailers' Occupation Tax Act shall not exceed
$2,000,000 in any fiscal year.
Beginning July 1, 2013, each month the Department shall
pay into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Service Use Tax Act, the Service
Occupation Tax Act, and the Retailers' Occupation Tax Act an
amount equal to the average monthly deficit in the Underground
Storage Tank Fund during the prior year, as certified annually
by the Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Service Use Tax Act, the Service Occupation Tax Act, and
the Retailers' Occupation Tax Act shall not exceed $18,000,000
in any State fiscal year. As used in this paragraph, the
"average monthly deficit" shall be equal to the difference
between the average monthly claims for payment by the fund and
the average monthly revenues deposited into the fund,
excluding payments made pursuant to this paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under this Act, the Service Use Tax
Act, the Service Occupation Tax Act, and the Retailers'
Occupation Tax Act, each month the Department shall deposit
$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

SB4200 - 91 - LRB104 21786 TRT 37479 b
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to Section 3
of the Retailers' Occupation Tax Act, Section 9 of the Use Tax
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois Bond Account
in the Build Illinois Fund during such month and (2) the amount
transferred during such month to the Build Illinois Fund from
the State and Local Sales Tax Reform Fund shall have been less
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

SB4200 - 92 - LRB104 21786 TRT 37479 b
event shall the payments required under the preceding proviso
result in aggregate payments into the Build Illinois Fund
pursuant to this clause (b) for any fiscal year in excess of
the greater of (i) the Tax Act Amount or (ii) the Annual
Specified Amount for such fiscal year; and, further provided,
that the amounts payable into the Build Illinois Fund under
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture
securing Bonds issued and outstanding pursuant to the Build
Illinois Bond Act is sufficient, taking into account any
future investment income, to fully provide, in accordance with
such indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited into the Build Illinois Bond
Account in the Build Illinois Fund in such month shall be less
than the amount required to be transferred in such month from
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

SB4200 - 93 - LRB104 21786 TRT 37479 b
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
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000

SB4200 - 94 - LRB104 21786 TRT 37479 b
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
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000

SB4200 - 95 - LRB104 21786 TRT 37479 b
2021 300,000,000
2022 300,000,000
2023 300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034 375,000,000
2035 375,000,000
2036 450,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
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

SB4200 - 96 - LRB104 21786 TRT 37479 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 Capital Projects
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, for aviation fuel sold on or after December 1, 2019,
the Department shall each month deposit into the Aviation Fuel
Sales Tax Refund Fund an amount estimated by the Department to
be required for refunds of the 80% portion of the tax on
aviation fuel under this Act. The Department shall only
deposit moneys into the Aviation Fuel Sales Tax Refund Fund
under this paragraph for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the

SB4200 - 97 - LRB104 21786 TRT 37479 b
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois
Tax Increment Fund 0.27% of 80% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, and the Energy Infrastructure Fund
pursuant to the preceding paragraphs or in any amendments to
this Section hereafter enacted, beginning on the first day of
the first calendar month to occur on or after August 26, 2014
(the effective date of Public Act 98-1098), each month, from
the collections made under Section 9 of the Use Tax Act,
Section 9 of the Service Use Tax Act, Section 9 of the Service
Occupation Tax Act, and Section 3 of the Retailers' Occupation
Tax Act, the Department shall pay into the Tax Compliance and
Administration Fund, to be used, subject to appropriation, to
fund additional auditors and compliance personnel at the
Department of Revenue, an amount equal to 1/12 of 5% of 80% of
the cash receipts collected during the preceding fiscal year
by the Audit Bureau of the Department under the Use Tax Act,
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

SB4200 - 98 - LRB104 21786 TRT 37479 b
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, and the Tax Compliance and Administration
Fund as provided in this Section, beginning on July 1, 2018 the
Department shall pay each month into the Downstate Public
Transportation Fund the moneys required to be so paid under
Section 2-3 of the Downstate Public Transportation Act.
Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim, and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private

SB4200 - 99 - LRB104 21786 TRT 37479 b
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year............................Total Deposit
2024....................................$200,000,000
2025....................................$206,000,000
2026....................................$212,200,000
2027....................................$218,500,000
2028....................................$225,100,000
2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000
2034....................................$341,200,000
2035....................................$351,400,000
2036....................................$361,900,000
2037....................................$372,800,000
2038....................................$384,000,000
2039....................................$395,500,000
2040....................................$407,400,000
2041....................................$419,600,000
2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the State and Local Sales Tax
Reform Fund, the Build Illinois Fund, the McCormick Place
Expansion Project Fund, the Illinois Tax Increment Fund, and

SB4200 - 100 - LRB104 21786 TRT 37479 b
the Tax Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 16% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2022 and until July 1, 2023, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 32% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2023 and until July 1, 2024, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 48% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2024 and until July 1, 2026, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road

SB4200 - 101 - LRB104 21786 TRT 37479 b
Fund the amount estimated to represent 64% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning on July 1, 2026, subject to the payment of amounts
into the State and Local Sales Tax Reform Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Public Transportation
Fund and the Downstate Public Transportation Fund the amount
estimated to represent 80% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Moneys shall be
apportioned as follows: 85% into the Public Transportation
Fund and 15% into the Downstate Public Transportation Fund. As
used in this paragraph, "motor fuel" has the meaning given to
that term in Section 1.1 of the Motor Fuel Tax Law, and
"gasohol" has the meaning given to that term in Section 3-40 of
this Act.
Until July 1, 2025, of the remainder of the moneys
received by the Department pursuant to this Act, 75% thereof
shall be paid into the State treasury and 25% shall be reserved
in a special account and used only for the transfer to the
Common School Fund as part of the monthly transfer from the
General Revenue Fund in accordance with Section 8a of the
State Finance Act. Beginning July 1, 2025, of the remainder of
the moneys received by the Department pursuant to this Act,
75% shall be deposited into the General Revenue Fund and 25%

SB4200 - 102 - LRB104 21786 TRT 37479 b
shall be deposited into the Common School Fund.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to
such sales, if the retailers who are affected do not make
written objection to the Department to this arrangement.
(Source: P.A. 103-154, eff. 6-30-23; 103-363, eff. 7-28-23;
103-592, Article 75, Section 75-5, eff. 1-1-25; 103-592,
Article 110, Section 110-5, eff. 6-7-24; 103-1055, eff.
12-20-24; 104-6, Article 5, Section 5-10, eff. 6-16-25; 104-6,
Article 35, Section 35-20, eff. 6-16-25; 104-457, eff.
6-1-26.)

SB4200 - 103 - LRB104 21786 TRT 37479 b
(35 ILCS 105/12) (from Ch. 120, par. 439.12)
Sec. 12. Applicability of Retailers' Occupation Tax Act
and Uniform Penalty and Interest Act. All of the provisions of
Sections 1d, 1e, 1f, 1i, 1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12,
2-29, 2-54, 2a, 2b, 2c, 3, 4 (except that the time limitation
provisions shall run from the date when the tax is due rather
than from the date when gross receipts are received), 5
(except that the time limitation provisions on the issuance of
notices of tax liability shall run from the date when the tax
is due rather than from the date when gross receipts are
received and except that in the case of a failure to file a
return required by this Act, no notice of tax liability shall
be issued on and after each July 1 and January 1 covering tax
due with that return during any month or period more than 6
years before that July 1 or January 1, respectively), 5a, 5b,
5c, 5d, 5e, 5f, 5g, 5h, 5j, 5k, 5l, 5m, 5n, 5o, 7, 8, 9, 10, 11
and 12 of the Retailers' Occupation Tax Act and Section 3-7 of
the Uniform Penalty and Interest Act, which are not
inconsistent with this Act, shall apply, as far as
practicable, to the subject matter of this Act to the same
extent as if such provisions were included herein.
(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23;
103-595, eff. 6-26-24.)
Section 45. The Service Use Tax Act is amended by changing
Sections 3-10, 9, and 12 as follows:

SB4200 - 104 - LRB104 21786 TRT 37479 b
(35 ILCS 110/3-10)
Sec. 3-10. Rate of tax. Unless otherwise provided in this
Section, the tax imposed by this Act is at the rate of 6.25% of
the selling price of tangible personal property transferred,
including, on and after January 1, 2025, transferred by lease,
as an incident to the sale of service, but, for the purpose of
computing this tax, in no event shall the selling price be less
than the cost price of the property to the serviceman.
Beginning July 1, 2028, with respect to building materials
used in a qualified residential development, as defined in
Section 605-1121 of the Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois,
the tax is imposed at the rate of 1.25%.
Beginning on July 1, 2000 and through December 31, 2000,
with respect to motor fuel, as defined in Section 1.1 of the
Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
the Use Tax Act, the tax is imposed at the rate of 1.25%.
With respect to gasohol, as defined in the Use Tax Act, the
tax imposed by this Act applies to (i) 70% of the selling price
of property transferred as an incident to the sale of service
on or after January 1, 1990, and before July 1, 2003, (ii) 80%
of the selling price of property transferred as an incident to
the sale of service on or after July 1, 2003 and on or before
July 1, 2017, (iii) 100% of the selling price of property
transferred as an incident to the sale of service after July 1,

SB4200 - 105 - LRB104 21786 TRT 37479 b
2017 and before January 1, 2024, (iv) 90% of the selling price
of property transferred as an incident to the sale of service
on or after January 1, 2024 and on or before December 31, 2028,
and (v) 100% of the selling price of property transferred as an
incident to the sale of service after December 31, 2028. If, at
any time, however, the tax under this Act on sales of gasohol,
as defined in the Use Tax Act, is imposed at the rate of 1.25%,
then the tax imposed by this Act applies to 100% of the
proceeds of sales of gasohol made during that time.
With respect to mid-range ethanol blends, as defined in
Section 3-44.3 of the Use Tax Act, the tax imposed by this Act
applies to (i) 80% of the selling price of property
transferred as an incident to the sale of service on or after
January 1, 2024 and on or before December 31, 2028 and (ii)
100% of the selling price of property transferred as an
incident to the sale of service after December 31, 2028. If, at
any time, however, the tax under this Act on sales of mid-range
ethanol blends is imposed at the rate of 1.25%, then the tax
imposed by this Act applies to 100% of the selling price of
mid-range ethanol blends transferred as an incident to the
sale of service during that time.
With respect to majority blended ethanol fuel, as defined
in the Use Tax Act, the tax imposed by this Act does not apply
to the selling price of property transferred as an incident to
the sale of service on or after July 1, 2003 and on or before
December 31, 2028 but applies to 100% of the selling price

SB4200 - 106 - LRB104 21786 TRT 37479 b
thereafter.
With respect to biodiesel blends, as defined in the Use
Tax Act, with no less than 1% and no more than 10% biodiesel,
the tax imposed by this Act applies to (i) 80% of the selling
price of property transferred as an incident to the sale of
service on or after July 1, 2003 and on or before December 31,
2018 and (ii) 100% of the proceeds of the selling price after
December 31, 2018 and before January 1, 2024. On and after
January 1, 2024 and on or before December 31, 2030, the
taxation of biodiesel, renewable diesel, and biodiesel blends
shall be as provided in Section 3-5.1 of the Use Tax Act. If,
at any time, however, the tax under this Act on sales of
biodiesel blends, as defined in the Use Tax Act, with no less
than 1% and no more than 10% biodiesel is imposed at the rate
of 1.25%, then the tax imposed by this Act applies to 100% of
the proceeds of sales of biodiesel blends with no less than 1%
and no more than 10% biodiesel made during that time.
With respect to biodiesel, as defined in the Use Tax Act,
and biodiesel blends, as defined in the Use Tax Act, with more
than 10% but no more than 99% biodiesel, the tax imposed by
this Act does not apply to the proceeds of the selling price of
property transferred as an incident to the sale of service on
or after July 1, 2003 and on or before December 31, 2023. On
and after January 1, 2024 and on or before December 31, 2030,
the taxation of biodiesel, renewable diesel, and biodiesel
blends shall be as provided in Section 3-5.1 of the Use Tax

SB4200 - 107 - LRB104 21786 TRT 37479 b
Act.
At the election of any registered serviceman made for each
fiscal year, for whom the aggregate annual cost price of
tangible personal property transferred as an incident to the
sales of service is less than 35%, or 75% in the case of
servicemen transferring prescription drugs or servicemen
engaged in graphic arts production, of the aggregate annual
total gross receipts from all sales of service, the tax
imposed by this Act shall be based on the serviceman's cost
price of the tangible personal property transferred as an
incident to the sale of those services. This election may also
be made by any serviceman maintaining a place of business in
this State who makes retail sales from outside of this State to
Illinois customers but is not required to be registered under
Section 2a of the Retailers' Occupation Tax Act. Beginning
January 1, 2026, this election shall not apply to any sale of
service made through a marketplace that has met the threshold
in subsection (b-5) of Section 2d of this Act.
Beginning January 1, 2026, the tax shall be imposed at the
rate of 6.25% of 50% of the entire billing to the service
customer for all sales of service made through a marketplace
that has met the threshold in subsection (b-5) of Section 2d of
this Act. In no event shall 50% of the entire billing be less
than the cost price of the property to the marketplace
serviceman or the marketplace facilitator on its own sales of
service.

SB4200 - 108 - LRB104 21786 TRT 37479 b
Until July 1, 2022 and from July 1, 2023 through December
31, 2025, the tax shall be imposed at the rate of 1% on food
prepared for immediate consumption and transferred incident to
a sale of service subject to this Act or the Service Occupation
Tax Act by an entity licensed under the Hospital Licensing
Act, the Nursing Home Care Act, the Assisted Living and Shared
Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
Specialized Mental Health Rehabilitation Act of 2013, or the
Child Care Act of 1969, or an entity that holds a permit issued
pursuant to the Life Care Facilities Act. Until July 1, 2022
and from July 1, 2023 through December 31, 2025, the tax shall
also be imposed at the rate of 1% on food for human consumption
that is to be consumed off the premises where it is sold (other
than alcoholic beverages, food consisting of or infused with
adult use cannabis, soft drinks, and food that has been
prepared for immediate consumption and is not otherwise
included in this paragraph).
Beginning on July 1, 2022 and until July 1, 2023, the tax
shall be imposed at the rate of 0% on food prepared for
immediate consumption and transferred incident to a sale of
service subject to this Act or the Service Occupation Tax Act
by an entity licensed under the Hospital Licensing Act, the
Nursing Home Care Act, the Assisted Living and Shared Housing
Act, the ID/DD Community Care Act, the MC/DD Act, the
Specialized Mental Health Rehabilitation Act of 2013, or the
Child Care Act of 1969, or an entity that holds a permit issued

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

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

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

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

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allowance for depreciation for the period of prior
out-of-state use. No depreciation is allowed in cases where
the tax under this Act is imposed on lease receipts.
(Source: P.A. 103-9, eff. 6-7-23; 103-154, eff. 6-30-23;
103-592, eff. 1-1-25; 103-781, eff. 8-5-24; 104-6, eff.
6-16-25; 104-417, eff. 8-15-25.)
(35 ILCS 110/9)
(Text of Section before amendment by P.A. 104-457)
Sec. 9. Each serviceman required or authorized to collect
the tax herein imposed shall pay to the Department the amount
of such tax (except as otherwise provided) at the time when he
is required to file his return for the period during which such
tax was collected, less a discount of 2.1% prior to January 1,
1990 and 1.75% on and after January 1, 1990, or $5 per calendar
year, whichever is greater, which is allowed to reimburse the
serviceman for expenses incurred in collecting the tax,
keeping records, preparing and filing returns, remitting the
tax, and supplying data to the Department on request.
Beginning with returns due on or after January 1, 2025, the
vendor's discount allowed in this Section, the Retailers'
Occupation Tax Act, the Service Occupation Tax Act, and the
Use Tax Act, including any local tax administered by the
Department and reported on the same return, shall not exceed
$1,000 per month in the aggregate. When determining the
discount allowed under this Section, servicemen shall include

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the amount of tax that would have been due at the 1% rate but
for the 0% rate imposed under Public Act 102-700. The discount
under this Section is not allowed for the 1.25% portion of
taxes paid on aviation fuel that is subject to the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The
discount allowed under this Section is allowed only for
returns that are filed in the manner required by this Act. The
Department may disallow the discount for servicemen whose
certificate of registration is revoked at the time the return
is filed, but only if the Department's decision to revoke the
certificate of registration has become final. A serviceman
need not remit that part of any tax collected by him to the
extent that he is required to pay and does pay the tax imposed
by the Service Occupation Tax Act with respect to his sale of
service involving the incidental transfer by him of the same
property.
Except as provided hereinafter in this Section, on or
before the twentieth day of each calendar month, such
serviceman shall file a return for the preceding calendar
month in accordance with reasonable Rules and Regulations to
be promulgated by the Department. Such return shall be filed
on a form prescribed by the Department and shall contain such
information as the Department may reasonably require. The
return shall include the gross receipts which were received
during the preceding calendar month or quarter on the
following items upon which tax would have been due but for the

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0% rate imposed under Public Act 102-700: (i) food for human
consumption that is to be consumed off the premises where it is
sold (other than alcoholic beverages, food consisting of or
infused with adult use cannabis, soft drinks, and food that
has been prepared for immediate consumption); and (ii) food
prepared for immediate consumption and transferred incident to
a sale of service subject to this Act or the Service Occupation
Tax Act by an entity licensed under the Hospital Licensing
Act, the Nursing Home Care Act, the Assisted Living and Shared
Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
Specialized Mental Health Rehabilitation Act of 2013, or the
Child Care Act of 1969, or an entity that holds a permit issued
pursuant to the Life Care Facilities Act. The return shall
also include the amount of tax that would have been due on the
items listed in the previous sentence but for the 0% rate
imposed under Public Act 102-700.
In the case of leases, except as otherwise provided in
this Act, the lessor, in collecting the tax, may collect for
each tax return period only the tax applicable to that part of
the selling price actually received during such tax return
period.
On and after January 1, 2018, with respect to servicemen
whose annual gross receipts average $20,000 or more, all
returns required to be filed pursuant to this Act shall be
filed electronically. Servicemen who demonstrate that they do
not have access to the Internet or demonstrate hardship in

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filing electronically may petition the Department to waive the
electronic filing requirement.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first 2 two months of each calendar quarter, on or
before the twentieth day of the following calendar month,
stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in business as a serviceman in this
State;
3. The total amount of taxable receipts received by
him during the preceding calendar month, including
receipts from charge and time sales, but less all
deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the Department
may require.
Each serviceman required or authorized to collect the tax
imposed by this Act on aviation fuel transferred as an

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incident of a sale of service in this State during the
preceding calendar month shall, instead of reporting and
paying tax on aviation fuel as otherwise required by this
Section, report and pay such tax on a separate aviation fuel
tax return. The requirements related to the return shall be as
otherwise provided in this Section. Notwithstanding any other
provisions of this Act to the contrary, servicemen collecting
tax on aviation fuel shall file all aviation fuel tax returns
and shall make all aviation fuel tax payments by electronic
means in the manner and form required by the Department. For
purposes of this Section, "aviation fuel" means jet fuel and
aviation gasoline.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Notwithstanding any other provision of this Act to the
contrary, servicemen subject to tax on cannabis shall file all
cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall

SB4200 - 118 - LRB104 21786 TRT 37479 b
make all payments required by rules of the Department by
electronic funds transfer. Beginning October 1, 1995, a
taxpayer who has an average monthly tax liability of $50,000
or more shall make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1,
2000, a taxpayer who has an annual tax liability of $200,000 or
more shall make all payments required by rules of the
Department by electronic funds transfer. The term "annual tax
liability" shall be the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year. The term "average monthly
tax liability" means the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year divided by 12. Beginning
on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the
Department of Revenue Law shall make all payments required by
rules of the Department by electronic funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make
payments by electronic funds transfer. All taxpayers required
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

SB4200 - 119 - LRB104 21786 TRT 37479 b
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those
payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
If the serviceman is otherwise required to file a monthly
return and if the serviceman's average monthly tax liability
to the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February, and March of a given
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.

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Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act concerning
the time within which a serviceman may file his return, in the
case of any serviceman who ceases to engage in a kind of
business which makes him responsible for filing returns under
this Act, such serviceman shall file a final return under this
Act with the Department not more than one month after
discontinuing such business.
Where a serviceman collects the tax with respect to the
selling price of property which he sells and the purchaser
thereafter returns such property and the serviceman refunds
the selling price thereof to the purchaser, such serviceman
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

SB4200 - 121 - LRB104 21786 TRT 37479 b
upon refunding such tax to the purchaser.
Any serviceman filing a return hereunder shall also
include the total tax upon the selling price of tangible
personal property purchased for use by him as an incident to a
sale of service, and such serviceman shall remit the amount of
such tax to the Department when filing such return.
If experience indicates such action to be practicable, the
Department may prescribe and furnish a combination or joint
return which will enable servicemen, who are required to file
returns hereunder and also under the Service Occupation Tax
Act, to furnish all the return information required by both
Acts on the one form.
Where the serviceman has more than one business registered
with the Department under separate registration hereunder,
such serviceman shall not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Tax Reform Fund, a special fund in
the State treasury, the net revenue realized for the preceding
month from the 1% tax imposed under this Act.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 20% of the
net revenue realized for the preceding month from the 6.25%
general rate on transfers of tangible personal property, other
than (i) tangible personal property which is purchased outside

SB4200 - 122 - LRB104 21786 TRT 37479 b
Illinois at retail from a retailer and which is titled or
registered by an agency of this State's government and (ii)
aviation fuel sold on or after December 1, 2019. This
exception for aviation fuel only applies for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be
required for refunds of the 20% portion of the tax on aviation
fuel under this Act, which amount shall be deposited into the
Aviation Fuel Sales Tax Refund Fund. The Department shall only
pay moneys into the State Aviation Program Fund and the
Aviation Fuel Sales Tax Refund Fund under this Act for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 100% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol.
Beginning July 1, 2028, 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 building materials for qualified

SB4200 - 123 - LRB104 21786 TRT 37479 b
residential developments.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2013, each month the Department shall
pay into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service
Occupation Tax Act, and the Retailers' Occupation Tax Act an
amount equal to the average monthly deficit in the Underground
Storage Tank Fund during the prior year, as certified annually
by the Illinois Environmental Protection Agency, but the total
payment into the Underground Storage Tank Fund under this Act,
the Use Tax Act, the Service Occupation Tax Act, and the
Retailers' Occupation Tax Act shall not exceed $18,000,000 in
any State fiscal year. As used in this paragraph, the "average
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

SB4200 - 124 - LRB104 21786 TRT 37479 b
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

SB4200 - 125 - LRB104 21786 TRT 37479 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 into in the Build Illinois
Bond Account in the Build Illinois Fund in such month shall be

SB4200 - 126 - LRB104 21786 TRT 37479 b
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
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

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

SB4200 - 128 - LRB104 21786 TRT 37479 b
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 300,000,000
2022 300,000,000
2023 300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034 375,000,000
2035 375,000,000
2036 450,000,000
and
each fiscal year
thereafter that bonds
are outstanding under

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Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, for aviation fuel sold on or after December 1, 2019,
the Department shall each month deposit into the Aviation Fuel
Sales Tax Refund Fund an amount estimated by the Department to
be required for refunds of the 80% portion of the tax on
aviation fuel under this Act. The Department shall only

SB4200 - 130 - LRB104 21786 TRT 37479 b
deposit moneys into the Aviation Fuel Sales Tax Refund Fund
under this paragraph for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois
Tax Increment Fund 0.27% of 80% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, pursuant to the preceding paragraphs or in
any amendments to this Section hereafter enacted, beginning on
the first day of the first calendar month to occur on or after
August 26, 2014 (the effective date of Public Act 98-1098),
each month, from the collections made under Section 9 of the
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

SB4200 - 131 - LRB104 21786 TRT 37479 b
during the preceding fiscal year by the Audit Bureau of the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, the Retailers' Occupation Tax Act,
and associated local occupation and use taxes administered by
the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, and the Tax Compliance and Administration
Fund as provided in this Section, beginning on July 1, 2018 the
Department shall pay each month into the Downstate Public
Transportation Fund the moneys required to be so paid under
Section 2-3 of the Downstate Public Transportation Act.
Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit

SB4200 - 132 - LRB104 21786 TRT 37479 b
Infrastructure Fund are subject to the pledge, claim, and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year............................Total Deposit
2024....................................$200,000,000
2025....................................$206,000,000
2026....................................$212,200,000
2027....................................$218,500,000
2028....................................$225,100,000
2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000
2034....................................$341,200,000
2035....................................$351,400,000
2036....................................$361,900,000
2037....................................$372,800,000
2038....................................$384,000,000
2039....................................$395,500,000
2040....................................$407,400,000
2041....................................$419,600,000

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2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the State and Local Sales Tax
Reform Fund, the Build Illinois Fund, the McCormick Place
Expansion Project Fund, the Energy Infrastructure Fund, and
the Tax Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 16% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2022 and until July 1, 2023, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 32% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2023 and until July 1, 2024, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 48% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.

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Beginning July 1, 2024 and until July 1, 2026, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 64% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning on July 1, 2026, subject to the payment of amounts
into the State and Local Sales Tax Reform Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 80% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. As used in this
paragraph "motor fuel" has the meaning given to that term in
Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the
meaning given to that term in Section 3-40 of the Use Tax Act.
Until July 1, 2025, of the remainder of the moneys
received by the Department pursuant to this Act, 75% thereof
shall be paid into the General Revenue Fund of the State
treasury and 25% shall be reserved in a special account and
used only for the transfer to the Common School Fund as part of
the monthly transfer from the General Revenue Fund in
accordance with Section 8a of the State Finance Act. Beginning

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July 1, 2025, of the remainder of the moneys received by the
Department pursuant to this Act, 75% shall be deposited into
the General Revenue Fund and 25% shall be deposited into the
Common School Fund.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
(Source: P.A. 103-363, eff. 7-28-23; 103-592, Article 75,
Section 75-10, eff. 1-1-25; 103-592, Article 110, Section
110-10, eff. 6-7-24; 104-6, Article 5, Section 5-15, eff.
6-16-25; 104-6, Article 35, Section 35-25, eff. 6-16-25;
104-417, eff. 8-15-25; revised 9-10-25.)
(Text of Section after amendment by P.A. 104-457)
Sec. 9. Each serviceman required or authorized to collect
the tax herein imposed shall pay to the Department the amount
of such tax (except as otherwise provided) at the time when he
is required to file his return for the period during which such

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tax was collected, less a discount of 2.1% prior to January 1,
1990 and 1.75% on and after January 1, 1990, or $5 per calendar
year, whichever is greater, which is allowed to reimburse the
serviceman for expenses incurred in collecting the tax,
keeping records, preparing and filing returns, remitting the
tax, and supplying data to the Department on request.
Beginning with returns due on or after January 1, 2025, the
vendor's discount allowed in this Section, the Retailers'
Occupation Tax Act, the Service Occupation Tax Act, and the
Use Tax Act, including any local tax administered by the
Department and reported on the same return, shall not exceed
$1,000 per month in the aggregate. When determining the
discount allowed under this Section, servicemen shall include
the amount of tax that would have been due at the 1% rate but
for the 0% rate imposed under Public Act 102-700. The discount
under this Section is not allowed for the 1.25% portion of
taxes paid on aviation fuel that is subject to the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The
discount allowed under this Section is allowed only for
returns that are filed in the manner required by this Act. The
Department may disallow the discount for servicemen whose
certificate of registration is revoked at the time the return
is filed, but only if the Department's decision to revoke the
certificate of registration has become final. A serviceman
need not remit that part of any tax collected by him to the
extent that he is required to pay and does pay the tax imposed

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by the Service Occupation Tax Act with respect to his sale of
service involving the incidental transfer by him of the same
property.
Except as provided hereinafter in this Section, on or
before the twentieth day of each calendar month, such
serviceman shall file a return for the preceding calendar
month in accordance with reasonable Rules and Regulations to
be promulgated by the Department. Such return shall be filed
on a form prescribed by the Department and shall contain such
information as the Department may reasonably require. The
return shall include the gross receipts which were received
during the preceding calendar month or quarter on the
following items upon which tax would have been due but for the
0% rate imposed under Public Act 102-700: (i) food for human
consumption that is to be consumed off the premises where it is
sold (other than alcoholic beverages, food consisting of or
infused with adult use cannabis, soft drinks, and food that
has been prepared for immediate consumption); and (ii) food
prepared for immediate consumption and transferred incident to
a sale of service subject to this Act or the Service Occupation
Tax Act by an entity licensed under the Hospital Licensing
Act, the Nursing Home Care Act, the Assisted Living and Shared
Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
Specialized Mental Health Rehabilitation Act of 2013, or the
Child Care Act of 1969, or an entity that holds a permit issued
pursuant to the Life Care Facilities Act. The return shall

SB4200 - 138 - LRB104 21786 TRT 37479 b
also include the amount of tax that would have been due on the
items listed in the previous sentence but for the 0% rate
imposed under Public Act 102-700.
In the case of leases, except as otherwise provided in
this Act, the lessor, in collecting the tax, may collect for
each tax return period only the tax applicable to that part of
the selling price actually received during such tax return
period.
On and after January 1, 2018, with respect to servicemen
whose annual gross receipts average $20,000 or more, all
returns required to be filed pursuant to this Act shall be
filed electronically. Servicemen who demonstrate that they do
not have access to the Internet or demonstrate hardship in
filing electronically may petition the Department to waive the
electronic filing requirement.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first 2 two months of each calendar quarter, on or
before the twentieth day of the following calendar month,
stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in business as a serviceman in this

SB4200 - 139 - LRB104 21786 TRT 37479 b
State;
3. The total amount of taxable receipts received by
him during the preceding calendar month, including
receipts from charge and time sales, but less all
deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the Department
may require.
Each serviceman required or authorized to collect the tax
imposed by this Act on aviation fuel transferred as an
incident of a sale of service in this State during the
preceding calendar month shall, instead of reporting and
paying tax on aviation fuel as otherwise required by this
Section, report and pay such tax on a separate aviation fuel
tax return. The requirements related to the return shall be as
otherwise provided in this Section. Notwithstanding any other
provisions of this Act to the contrary, servicemen collecting
tax on aviation fuel shall file all aviation fuel tax returns
and shall make all aviation fuel tax payments by electronic
means in the manner and form required by the Department. For
purposes of this Section, "aviation fuel" means jet fuel and
aviation gasoline.
If a taxpayer fails to sign a return within 30 days after

SB4200 - 140 - LRB104 21786 TRT 37479 b
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Notwithstanding any other provision of this Act to the
contrary, servicemen subject to tax on cannabis shall file all
cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall
make all payments required by rules of the Department by
electronic funds transfer. Beginning October 1, 1995, a
taxpayer who has an average monthly tax liability of $50,000
or more shall make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1,
2000, a taxpayer who has an annual tax liability of $200,000 or
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

SB4200 - 141 - LRB104 21786 TRT 37479 b
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year divided by 12. Beginning
on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the
Department of Revenue Law shall make all payments required by
rules of the Department by electronic funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make
payments by electronic funds transfer. All taxpayers required
to make payments by electronic funds transfer shall make those
payments for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those
payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
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,

SB4200 - 142 - LRB104 21786 TRT 37479 b
with the return for January, February, and March of a given
year being due by April 20 of such year; with the return for
April, May, and June of a given year being due by July 20 of
such year; with the return for July, August, and September of a
given year being due by October 20 of such year, and with the
return for October, November, and December of a given year
being due by January 20 of the following year.
If the serviceman is otherwise required to file a monthly
or quarterly return and if the serviceman's average monthly
tax liability to the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January 20
of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act concerning
the time within which a serviceman may file his return, in the
case of any serviceman who ceases to engage in a kind of
business which makes him responsible for filing returns under
this Act, such serviceman shall file a final return under this
Act with the Department not more than one month after
discontinuing such business.
Where a serviceman collects the tax with respect to the
selling price of property which he sells and the purchaser
thereafter returns such property and the serviceman refunds

SB4200 - 143 - LRB104 21786 TRT 37479 b
the selling price thereof to the purchaser, such serviceman
shall also refund, to the purchaser, the tax so collected from
the purchaser. When filing his return for the period in which
he refunds such tax to the purchaser, the serviceman may
deduct the amount of the tax so refunded by him to the
purchaser from any other Service Use Tax, Service Occupation
Tax, retailers' occupation tax, or use tax which such
serviceman may be required to pay or remit to the Department,
as shown by such return, provided that the amount of the tax to
be deducted shall previously have been remitted to the
Department by such serviceman. If the serviceman shall not
previously have remitted the amount of such tax to the
Department, he shall be entitled to no deduction hereunder
upon refunding such tax to the purchaser.
Any serviceman filing a return hereunder shall also
include the total tax upon the selling price of tangible
personal property purchased for use by him as an incident to a
sale of service, and such serviceman shall remit the amount of
such tax to the Department when filing such return.
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

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with the Department under separate registration hereunder,
such serviceman shall not file each return that is due as a
single return covering all such registered businesses, but
shall file separate returns for each such registered business.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Tax Reform Fund, a special fund in
the State treasury, the net revenue realized for the preceding
month from the 1% tax imposed under this Act.
Beginning January 1, 1990, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 20% of the
net revenue realized for the preceding month from the 6.25%
general rate on transfers of tangible personal property, other
than (i) tangible personal property which is purchased outside
Illinois at retail from a retailer and which is titled or
registered by an agency of this State's government and (ii)
aviation fuel sold on or after December 1, 2019. This
exception for aviation fuel only applies for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be
required for refunds of the 20% portion of the tax on aviation
fuel under this Act, which amount shall be deposited into the

SB4200 - 145 - LRB104 21786 TRT 37479 b
Aviation Fuel Sales Tax Refund Fund. The Department shall only
pay moneys into the State Aviation Program Fund and the
Aviation Fuel Sales Tax Refund Fund under this Act for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the State and Local Sales Tax Reform Fund 100% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol.
Beginning July 1, 2028, 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 building materials for qualified
residential developments.
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

SB4200 - 146 - LRB104 21786 TRT 37479 b
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

SB4200 - 147 - LRB104 21786 TRT 37479 b
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

SB4200 - 148 - LRB104 21786 TRT 37479 b
securing Bonds issued and outstanding pursuant to the Build
Illinois Bond Act is sufficient, taking into account any
future investment income, to fully provide, in accordance with
such indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited into in the Build Illinois
Bond Account in the Build Illinois Fund in such month shall be
less than the amount required to be transferred in such month
from the Build Illinois Bond Account to the Build Illinois
Bond Retirement and Interest Fund pursuant to Section 13 of
the Build Illinois Bond Act, an amount equal to such
deficiency shall be immediately paid from other moneys
received by the Department pursuant to the Tax Acts to the
Build Illinois Fund; provided, however, that any amounts paid
to the Build Illinois Fund in any fiscal year pursuant to this
sentence shall be deemed to constitute payments pursuant to
clause (b) of the preceding sentence and shall reduce the
amount otherwise payable for such fiscal year pursuant to
clause (b) of the preceding sentence. The moneys received by
the Department pursuant to this Act and required to be

SB4200 - 149 - LRB104 21786 TRT 37479 b
deposited into the Build Illinois Fund are subject to the
pledge, claim and charge set forth in Section 12 of the Build
Illinois Bond Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000

SB4200 - 150 - LRB104 21786 TRT 37479 b
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 300,000,000
2022 300,000,000
2023 300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000

SB4200 - 151 - LRB104 21786 TRT 37479 b
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034 375,000,000
2035 375,000,000
2036 450,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,

SB4200 - 152 - LRB104 21786 TRT 37479 b
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, for aviation fuel sold on or after December 1, 2019,
the Department shall each month deposit into the Aviation Fuel
Sales Tax Refund Fund an amount estimated by the Department to
be required for refunds of the 80% portion of the tax on
aviation fuel under this Act. The Department shall only
deposit moneys into the Aviation Fuel Sales Tax Refund Fund
under this paragraph for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois
Tax Increment Fund 0.27% of 80% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois

SB4200 - 153 - LRB104 21786 TRT 37479 b
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, pursuant to the preceding paragraphs or in
any amendments to this Section hereafter enacted, beginning on
the first day of the first calendar month to occur on or after
August 26, 2014 (the effective date of Public Act 98-1098),
each month, from the collections made under Section 9 of the
Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of
the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act, the Department shall pay into
the Tax Compliance and Administration Fund, to be used,
subject to appropriation, to fund additional auditors and
compliance personnel at the Department of Revenue, an amount
equal to 1/12 of 5% of 80% of the cash receipts collected
during the preceding fiscal year by the Audit Bureau of the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, the Retailers' Occupation Tax Act,
and associated local occupation and use taxes administered by
the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, and the Tax Compliance and Administration
Fund as provided in this Section, beginning on July 1, 2018 the
Department shall pay each month into the Downstate Public
Transportation Fund the moneys required to be so paid under
Section 2-3 of the Downstate Public Transportation Act.
Subject to successful execution and delivery of a

SB4200 - 154 - LRB104 21786 TRT 37479 b
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim, and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year............................Total Deposit
2024....................................$200,000,000
2025....................................$206,000,000
2026....................................$212,200,000
2027....................................$218,500,000
2028....................................$225,100,000

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2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000
2034....................................$341,200,000
2035....................................$351,400,000
2036....................................$361,900,000
2037....................................$372,800,000
2038....................................$384,000,000
2039....................................$395,500,000
2040....................................$407,400,000
2041....................................$419,600,000
2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the State and Local Sales Tax
Reform Fund, the Build Illinois Fund, the McCormick Place
Expansion Project Fund, the Energy Infrastructure Fund, and
the Tax Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 16% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2022 and until July 1, 2023, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion

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Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 32% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2023 and until July 1, 2024, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 48% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning July 1, 2024 and until July 1, 2026, subject to the
payment of amounts into the State and Local Sales Tax Reform
Fund, the Build Illinois Fund, the McCormick Place Expansion
Project Fund, the Illinois Tax Increment Fund, and the Tax
Compliance and Administration Fund as provided in this
Section, the Department shall pay each month into the Road
Fund the amount estimated to represent 64% of the net revenue
realized from the taxes imposed on motor fuel and gasohol.
Beginning on July 1, 2026, subject to the payment of amounts
into the State and Local Sales Tax Reform Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the

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Department shall pay each month into the Public Transportation
Fund and the Downstate Public Transportation Fund the amount
estimated to represent 80% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Those moneys
shall be apportioned as follows: 85% into the Public
Transportation Fund and 15% into the Downstate Public
Transportation Fund. As used in this paragraph "motor fuel"
has the meaning given to that term in Section 1.1 of the Motor
Fuel Tax Law, and "gasohol" has the meaning given to that term
in Section 3-40 of the Use Tax Act.
Until July 1, 2025, of the remainder of the moneys
received by the Department pursuant to this Act, 75% thereof
shall be paid into the General Revenue Fund of the State
treasury and 25% shall be reserved in a special account and
used only for the transfer to the Common School Fund as part of
the monthly transfer from the General Revenue Fund in
accordance with Section 8a of the State Finance Act. Beginning
July 1, 2025, of the remainder of the moneys received by the
Department pursuant to this Act, 75% shall be deposited into
the General Revenue Fund and 25% shall be deposited into the
Common School Fund.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
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.
(Source: P.A. 103-363, eff. 7-28-23; 103-592, Article 75,
Section 75-10, eff. 1-1-25; 103-592, Article 110, Section
110-10, eff. 6-7-24; 104-6, Article 5, Section 5-15, eff.
6-16-25; 104-6, Article 35, Section 35-25, eff. 6-16-25;
104-417, eff. 8-15-25; 104-457, eff. 6-1-26; revised 1-12-26.)
(35 ILCS 110/12) (from Ch. 120, par. 439.42)
Sec. 12. Applicability of Retailers' Occupation Tax Act
and Uniform Penalty and Interest Act. All of the provisions of
Sections 1d, 1e, 1f, 1i, 1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12,
2-29, 2-54, 2a, 2b, 2c, 3 (except as to the disposition by the
Department of the money collected under this Act), 4 (except
that the time limitation provisions shall run from the date
when gross receipts are received), 5 (except that the time
limitation provisions on the issuance of notices of tax
liability shall run from the date when the tax is due rather
than from the date when gross receipts are received and except
that in the case of a failure to file a return required by this
Act, no notice of tax liability shall be issued on and after
July 1 and January 1 covering tax due with that return during

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any month or period more than 6 years before that July 1 or
January 1, respectively), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 5k,
5l, 5m, 5n, 5o, 6d, 7, 8, 9, 10, 11 and 12 of the Retailers'
Occupation Tax Act which are not inconsistent with this Act,
and Section 3-7 of the Uniform Penalty and Interest Act, shall
apply, as far as practicable, to the subject matter of this Act
to the same extent as if such provisions were included herein.
(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23;
103-595, eff. 6-26-24.)
Section 50. The Service Occupation Tax Act is amended by
changing Sections 3-10, 9, and 12 as follows:
(35 ILCS 115/3-10)
Sec. 3-10. Rate of tax. Unless otherwise provided in this
Section, the tax imposed by this Act is at the rate of 6.25% of
the "selling price", as defined in Section 2 of the Service Use
Tax Act, of the tangible personal property, including, on and
after January 1, 2025, tangible personal property transferred
by lease. For the purpose of computing this tax, in no event
shall the "selling price" be less than the cost price to the
serviceman of the tangible personal property transferred. The
selling price of each item of tangible personal property
transferred as an incident of a sale of service may be shown as
a distinct and separate item on the serviceman's billing to
the service customer. If the selling price is not so shown, the

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selling price of the tangible personal property is deemed to
be 50% of the serviceman's entire billing to the service
customer. When, however, a serviceman contracts to design,
develop, and produce special order machinery or equipment, the
tax imposed by this Act shall be based on the serviceman's cost
price of the tangible personal property transferred incident
to the completion of the contract.
Beginning July 1, 2028, with respect to building materials
used in a qualified residential development, as defined in
Section 605-1121 of the Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois,
the tax is imposed at the rate of 1.25%.
Beginning on July 1, 2000 and through December 31, 2000,
with respect to motor fuel, as defined in Section 1.1 of the
Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
the Use Tax Act, the tax is imposed at the rate of 1.25%.
With respect to gasohol, as defined in the Use Tax Act, the
tax imposed by this Act shall apply to (i) 70% of the cost
price of property transferred as an incident to the sale of
service on or after January 1, 1990, and before July 1, 2003,
(ii) 80% of the selling price of property transferred as an
incident to the sale of service on or after July 1, 2003 and on
or before July 1, 2017, (iii) 100% of the selling price of
property transferred as an incident to the sale of service
after July 1, 2017 and prior to January 1, 2024, (iv) 90% of
the selling price of property transferred as an incident to

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

SB4200 - 162 - LRB104 21786 TRT 37479 b
With respect to biodiesel blends, as defined in the Use
Tax Act, with no less than 1% and no more than 10% biodiesel,
the tax imposed by this Act applies to (i) 80% of the selling
price of property transferred as an incident to the sale of
service on or after July 1, 2003 and on or before December 31,
2018 and (ii) 100% of the proceeds of the selling price after
December 31, 2018 and before January 1, 2024. On and after
January 1, 2024 and on or before December 31, 2030, the
taxation of biodiesel, renewable diesel, and biodiesel blends
shall be as provided in Section 3-5.1 of the Use Tax Act. If,
at any time, however, the tax under this Act on sales of
biodiesel blends, as defined in the Use Tax Act, with no less
than 1% and no more than 10% biodiesel is imposed at the rate
of 1.25%, then the tax imposed by this Act applies to 100% of
the proceeds of sales of biodiesel blends with no less than 1%
and no more than 10% biodiesel made during that time.
With respect to biodiesel, as defined in the Use Tax Act,
and biodiesel blends, as defined in the Use Tax Act, with more
than 10% but no more than 99% biodiesel material, the tax
imposed by this Act does not apply to the proceeds of the
selling price of property transferred as an incident to the
sale of service on or after July 1, 2003 and on or before
December 31, 2023. On and after January 1, 2024 and on or
before December 31, 2030, the taxation of biodiesel, renewable
diesel, and biodiesel blends shall be as provided in Section
3-5.1 of the Use Tax Act.

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At the election of any registered serviceman made for each
fiscal year, for whom the aggregate annual cost price of
tangible personal property transferred as an incident to the
sales of service is less than 35%, or 75% in the case of
servicemen transferring prescription drugs or servicemen
engaged in graphic arts production, of the aggregate annual
total gross receipts from all sales of service, the tax
imposed by this Act shall be based on the serviceman's cost
price of the tangible personal property transferred incident
to the sale of those services. This election may also be made
by a serviceman maintaining a place of business in this State
who makes retail sales from outside of this State to Illinois
customers but is not required to be registered under Section
2a of the Retailers' Occupation Tax Act. Beginning January 1,
2026, this election shall not apply to any sale of service made
through a marketplace that has met the threshold in subsection
(d) of Section 3 of this Act.
Beginning January 1, 2026, the tax shall be imposed at the
rate of 6.25% of 50% of the entire billing to the service
customer for all sales of service made through a marketplace
that has met the threshold in subsection (d) of Section 3 of
this Act. In no event shall 50% of the entire billing be less
than the cost price of the property to the marketplace
serviceman or the marketplace facilitator on its own sales of
service.
Until July 1, 2022 and from July 1, 2023 through December

SB4200 - 164 - LRB104 21786 TRT 37479 b
31, 2025, the tax shall be imposed at the rate of 1% on food
prepared for immediate consumption and transferred incident to
a sale of service subject to this Act or the Service Use Tax
Act by an entity licensed under the Hospital Licensing Act,
the Nursing Home Care Act, the Assisted Living and Shared
Housing Act, the ID/DD Community Care Act, the MC/DD Act, the
Specialized Mental Health Rehabilitation Act of 2013, or the
Child Care Act of 1969, or an entity that holds a permit issued
pursuant to the Life Care Facilities Act. Until July 1, 2022
and from July 1, 2023 through December 31, 2025, the tax shall
also be imposed at the rate of 1% on food for human consumption
that is to be consumed off the premises where it is sold (other
than alcoholic beverages, food consisting of or infused with
adult use cannabis, soft drinks, and food that has been
prepared for immediate consumption and is not otherwise
included in this paragraph).
Beginning on July 1, 2022 and until July 1, 2023, the tax
shall be imposed at the rate of 0% on food prepared for
immediate consumption and transferred incident to a sale of
service subject to this Act or the Service Use Tax Act by an
entity licensed under the Hospital Licensing Act, the Nursing
Home Care Act, the Assisted Living and Shared Housing Act, the
ID/DD Community Care Act, the MC/DD Act, the Specialized
Mental Health Rehabilitation Act of 2013, or the Child Care
Act of 1969, or an entity that holds a permit issued pursuant
to the Life Care Facilities Act. Beginning July 1, 2022 and

SB4200 - 165 - LRB104 21786 TRT 37479 b
until July 1, 2023, the tax shall also be imposed at the rate
of 0% on food for human consumption that is to be consumed off
the premises where it is sold (other than alcoholic beverages,
food consisting of or infused with adult use cannabis, soft
drinks, and food that has been prepared for immediate
consumption and is not otherwise included in this paragraph).
On and after January 1, 2026, food prepared for immediate
consumption and transferred incident to a sale of service
subject to this Act or the Service Use Tax Act by an entity
licensed under the Hospital Licensing Act, the Nursing Home
Care Act, the Assisted Living and Shared Housing Act, the
ID/DD Community Care Act, the MC/DD Act, the Specialized
Mental Health Rehabilitation Act of 2013, or the Child Care
Act of 1969, or an entity that holds a permit issued pursuant
to the Life Care Facilities Act is exempt from the tax imposed
by this Act. On and after January 1, 2026, food for human
consumption that is to be consumed off the premises where it is
sold (other than alcoholic beverages, food consisting of or
infused with adult use cannabis, soft drinks, candy, and food
that has been prepared for immediate consumption and is not
otherwise included in this paragraph) is exempt from the tax
imposed by this Act.
The tax shall be imposed at the rate of 1% on prescription
and nonprescription medicines, drugs, medical appliances,
products classified as Class III medical devices by the United
States Food and Drug Administration that are used for cancer

SB4200 - 166 - LRB104 21786 TRT 37479 b
treatment pursuant to a prescription, as well as any
accessories and components related to those devices,
modifications to a motor vehicle for the purpose of rendering
it usable by a person with a disability, and insulin, blood
sugar testing materials, syringes, and needles used by human
diabetics. For the purposes of this Section, until September
1, 2009: the term "soft drinks" means any complete, finished,
ready-to-use, non-alcoholic drink, whether carbonated or not,
including, but not limited to, soda water, cola, fruit juice,
vegetable juice, carbonated water, and all other preparations
commonly known as soft drinks of whatever kind or description
that are contained in any closed or sealed can, carton, or
container, regardless of size; but "soft drinks" does not
include coffee, tea, non-carbonated water, infant formula,
milk or milk products as defined in the Grade A Pasteurized
Milk and Milk Products Act, or drinks containing 50% or more
natural fruit or vegetable juice.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "soft drinks" means non-alcoholic
beverages that contain natural or artificial sweeteners. "Soft
drinks" does not include beverages that contain milk or milk
products, soy, rice or similar milk substitutes, or greater
than 50% of vegetable or fruit juice by volume.
Until August 1, 2009, and notwithstanding any other
provisions of this Act, "food for human consumption that is to
be consumed off the premises where it is sold" includes all

SB4200 - 167 - LRB104 21786 TRT 37479 b
food sold through a vending machine, except soft drinks and
food products that are dispensed hot from a vending machine,
regardless of the location of the vending machine. Beginning
August 1, 2009, and notwithstanding any other provisions of
this Act, "food for human consumption that is to be consumed
off the premises where it is sold" includes all food sold
through a vending machine, except soft drinks, candy, and food
products that are dispensed hot from a vending machine,
regardless of the location of the vending machine.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "food for human consumption that
is to be consumed off the premises where it is sold" does not
include candy. For purposes of this Section, "candy" means a
preparation of sugar, honey, or other natural or artificial
sweeteners in combination with chocolate, fruits, nuts or
other ingredients or flavorings in the form of bars, drops, or
pieces. "Candy" does not include any preparation that contains
flour or requires refrigeration.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "nonprescription medicines and
drugs" does not include grooming and hygiene products. For
purposes of this Section, "grooming and hygiene products"
includes, but is not limited to, soaps and cleaning solutions,
shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
lotions and screens, unless those products are available by
prescription only, regardless of whether the products meet the

SB4200 - 168 - LRB104 21786 TRT 37479 b
definition of "over-the-counter-drugs". For the purposes of
this paragraph, "over-the-counter-drug" means a drug for human
use that contains a label that identifies the product as a drug
as required by 21 CFR 201.66. The "over-the-counter-drug"
label includes:
(A) a "Drug Facts" panel; or
(B) a statement of the "active ingredient(s)" with a
list of those ingredients contained in the compound,
substance or preparation.
Beginning on January 1, 2014 (the effective date of Public
Act 98-122), "prescription and nonprescription medicines and
drugs" includes medical cannabis purchased from a registered
dispensing organization under the Compassionate Use of Medical
Cannabis Program Act.
As used in this Section, "adult use cannabis" means
cannabis subject to tax under the Cannabis Cultivation
Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
and does not include cannabis subject to tax under the
Compassionate Use of Medical Cannabis Program Act.
(Source: P.A. 103-9, eff. 6-7-23; 103-154, eff. 6-30-23;
103-592, eff. 1-1-25; 103-781, eff. 8-5-24; 104-6, eff.
6-16-25; 104-417, eff. 8-15-25.)
(35 ILCS 115/9) (from Ch. 120, par. 439.109)
(Text of Section before amendment by P.A. 104-457)
Sec. 9. Each serviceman required or authorized to collect

SB4200 - 169 - LRB104 21786 TRT 37479 b
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. On and after January 1,
2026, a certified service provider, as defined in the Leveling
the Playing Field for Illinois Retail Act, filing the return
under this Section on behalf of a serviceman maintaining a
place of business in this State shall, at the time of such
return, pay to the Department the amount of tax imposed by this
Act less a discount of 1.75%, not to exceed $1,000 $1000 per
month as provided in this Section. A serviceman maintaining a
place of business in this State using a certified service
provider to file a return on its behalf, as provided in the
Leveling the Playing Field for Illinois Retail Act, is not
eligible for the discount. Beginning with returns due on or
after January 1, 2025, the vendor's discount allowed in this
Section, the Retailers' Occupation Tax Act, the Use Tax Act,
and the Service Use Tax Act, including any local tax
administered by the Department and reported on the same
return, shall not exceed $1,000 per month in the aggregate.
When determining the discount allowed under this Section,

SB4200 - 170 - LRB104 21786 TRT 37479 b
servicemen shall include the amount of tax that would have
been due at the 1% rate but for the 0% rate imposed under
Public Act 102-700. The discount under this Section is not
allowed for the 1.25% portion of taxes paid on aviation fuel
that is subject to the revenue use requirements of 49 U.S.C.
47107(b) and 49 U.S.C. 47133. The discount allowed under this
Section is allowed only for returns that are filed in the
manner required by this Act. The Department may disallow the
discount for servicemen whose certificate of registration is
revoked at the time the return is filed, but only if the
Department's decision to revoke the certificate of
registration has become final.
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

SB4200 - 171 - LRB104 21786 TRT 37479 b
contain such information as the Department may reasonably
require. The return shall include the gross receipts which
were received during the preceding calendar month or quarter
on the following items upon which tax would have been due but
for the 0% rate imposed under Public Act 102-700: (i) food for
human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, food
consisting of or infused with adult use cannabis, soft drinks,
and food that has been prepared for immediate consumption);
and (ii) food prepared for immediate consumption and
transferred incident to a sale of service subject to this Act
or the Service Use Tax Act by an entity licensed under the
Hospital Licensing Act, the Nursing Home Care Act, the
Assisted Living and Shared Housing Act, the ID/DD Community
Care Act, the MC/DD Act, the Specialized Mental Health
Rehabilitation Act of 2013, or the Child Care Act of 1969, or
an entity that holds a permit issued pursuant to the Life Care
Facilities Act. The return shall also include the amount of
tax that would have been due on the items listed in the
previous sentence but for the 0% rate imposed under Public Act
102-700.
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

SB4200 - 172 - LRB104 21786 TRT 37479 b
filing electronically may petition the Department to waive the
electronic filing requirement.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first 2 two months of each calendar quarter, on or
before the twentieth day of the following calendar month,
stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in business as a serviceman in this
State;
3. The total amount of taxable receipts received by
him during the preceding calendar month, including
receipts from charge and time sales, but less all
deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the Department
may require.
Each serviceman required or authorized to collect the tax
herein imposed on aviation fuel acquired as an incident to the

SB4200 - 173 - LRB104 21786 TRT 37479 b
purchase of a service in this State during the preceding
calendar month shall, instead of reporting and paying tax as
otherwise required by this Section, report and pay such tax on
a separate aviation fuel tax return. The requirements related
to the return shall be as otherwise provided in this Section.
Notwithstanding any other provisions of this Act to the
contrary, servicemen transferring aviation fuel incident to
sales of service shall file all aviation fuel tax returns and
shall make all aviation fuel tax payments by electronic means
in the manner and form required by the Department. For
purposes of this Section, "aviation fuel" means jet fuel and
aviation gasoline.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Notwithstanding any other provision of this Act to the
contrary, servicemen subject to tax on cannabis shall file all
cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
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

SB4200 - 174 - LRB104 21786 TRT 37479 b
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.
Beginning on July 1, 2023 and through December 31, 2032, a
serviceman may accept a Sustainable Aviation Fuel Purchase
Credit certification from an air common carrier-purchaser in
satisfaction of Service Use Tax as provided in Section 3-72 of
the Service Use Tax Act if the purchaser provides the
appropriate documentation as required by Section 3-72 of the
Service Use Tax Act. A Sustainable Aviation Fuel Purchase
Credit certification accepted by a serviceman in accordance
with this paragraph may be used by that serviceman to satisfy

SB4200 - 175 - LRB104 21786 TRT 37479 b
service occupation tax liability (but not in satisfaction of
penalty or interest) in the amount claimed in the
certification, not to exceed 6.25% of the receipts subject to
tax from a sale of aviation fuel. In addition, for a sale of
aviation fuel to qualify to earn the Sustainable Aviation Fuel
Purchase Credit, servicemen must retain in their books and
records a certification from the producer of the aviation fuel
that the aviation fuel sold by the serviceman and for which a
sustainable aviation fuel purchase credit was earned meets the
definition of sustainable aviation fuel under Section 3-72 of
the Service Use Tax Act. The documentation must include detail
sufficient for the Department to determine the number of
gallons of sustainable aviation fuel sold.
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
Department does not exceed $50, the Department may authorize
his returns to be filed on an annual basis, with the return for

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

SB4200 - 177 - LRB104 21786 TRT 37479 b
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
requirements of this Section.
Where a serviceman collects the tax with respect to the

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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
with the Department under separate registrations hereunder,
such serviceman shall file separate returns for each

SB4200 - 179 - LRB104 21786 TRT 37479 b
registered business.
The net revenue realized at the 15% rate under either
Section 4 or Section 5 of the Retailers' Occupation Tax Act, as
incorporated into this Act by Section 12, shall be deposited
as follows: (i) notwithstanding the provisions of this Section
to the contrary, the net revenue realized from the portion of
the rate in excess of 5% shall be deposited into the State and
Local Sales Tax Reform Fund; and (ii) the net revenue realized
from the 5% portion of the rate shall be deposited as provided
in this Section for the 5% portion of the 6.25% general rate
imposed under this Act.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund the revenue realized
for the preceding month from the 1% tax imposed under this Act.
Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund 4% of the
revenue realized for the preceding month from the 6.25%
general rate on sales of tangible personal property other than
aviation fuel sold on or after December 1, 2019. This
exception for aviation fuel only applies for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the State.
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.

SB4200 - 180 - LRB104 21786 TRT 37479 b
Beginning July 1, 2028, 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 qualified residential development
building materials.
Beginning July 1, 2028, 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 qualified residential development building
materials.
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 other than aviation
fuel sold on or after December 1, 2019. This exception for
aviation fuel only applies for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be
required for refunds of the 20% portion of the tax on aviation
fuel under this Act, which amount shall be deposited into the
Aviation Fuel Sales Tax Refund Fund. The Department shall only

SB4200 - 181 - LRB104 21786 TRT 37479 b
pay moneys into the State Aviation Program Fund and the
Aviation Fuel Sales Tax Refund Fund under this Act for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the 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

SB4200 - 182 - LRB104 21786 TRT 37479 b
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
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the

SB4200 - 183 - LRB104 21786 TRT 37479 b
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois 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

SB4200 - 184 - LRB104 21786 TRT 37479 b
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited into in the Build Illinois
Bond Account in the Build Illinois Fund in such month shall be
less than the amount required to be transferred in such month
from the Build Illinois Bond Account to the Build Illinois
Bond Retirement and Interest Fund pursuant to Section 13 of
the Build Illinois Bond Act, an amount equal to such
deficiency shall be immediately paid from other moneys
received by the Department pursuant to the Tax Acts to the
Build Illinois Fund; provided, however, that any amounts paid
to the Build Illinois Fund in any fiscal year pursuant to this
sentence shall be deemed to constitute payments pursuant to
clause (b) of the preceding sentence and shall reduce the
amount otherwise payable for such fiscal year pursuant to
clause (b) of the preceding sentence. The moneys received by
the Department pursuant to this Act and required to be
deposited into the Build Illinois Fund are subject to the
pledge, claim and charge set forth in Section 12 of the Build
Illinois Bond Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly

SB4200 - 185 - LRB104 21786 TRT 37479 b
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000

SB4200 - 186 - LRB104 21786 TRT 37479 b
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 300,000,000
2022 300,000,000
2023 300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000

SB4200 - 187 - LRB104 21786 TRT 37479 b
2034 375,000,000
2035 375,000,000
2036 450,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects
Fund, the Build Illinois Fund, and the McCormick Place

SB4200 - 188 - LRB104 21786 TRT 37479 b
Expansion Project Fund pursuant to the preceding paragraphs or
in any amendments thereto hereafter enacted, for aviation fuel
sold on or after December 1, 2019, the Department shall each
month deposit into the Aviation Fuel Sales Tax Refund Fund an
amount estimated by the Department to be required for refunds
of the 80% portion of the tax on aviation fuel under this Act.
The Department shall only deposit moneys into the Aviation
Fuel Sales Tax Refund Fund under this paragraph for so long as
the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois
Tax Increment Fund 0.27% of 80% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, and the
Illinois Tax Increment Fund pursuant to the preceding
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

SB4200 - 189 - LRB104 21786 TRT 37479 b
Use Tax Act, Section 9 of the Service Occupation Tax Act, and
Section 3 of the Retailers' Occupation Tax Act, the Department
shall pay into the Tax Compliance and Administration Fund, to
be used, subject to appropriation, to fund additional auditors
and compliance personnel at the Department of Revenue, an
amount equal to 1/12 of 5% of 80% of the cash receipts
collected during the preceding fiscal year by the Audit Bureau
of the Department under the Use Tax Act, the Service Use Tax
Act, the Service Occupation Tax Act, the Retailers' Occupation
Tax Act, and associated local occupation and use taxes
administered by the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, and the Tax Compliance and Administration
Fund as provided in this Section, beginning on July 1, 2018 the
Department shall pay each month into the Downstate Public
Transportation Fund the moneys required to be so paid under
Section 2-3 of the Downstate Public Transportation Act.
Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the

SB4200 - 190 - LRB104 21786 TRT 37479 b
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year............................Total Deposit
2024....................................$200,000,000
2025....................................$206,000,000
2026....................................$212,200,000
2027....................................$218,500,000
2028....................................$225,100,000
2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000
2034....................................$341,200,000
2035....................................$351,400,000

SB4200 - 191 - LRB104 21786 TRT 37479 b
2036....................................$361,900,000
2037....................................$372,800,000
2038....................................$384,000,000
2039....................................$395,500,000
2040....................................$407,400,000
2041....................................$419,600,000
2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the County and Mass Transit
District Fund, the Local Government Tax Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 16% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning July 1,
2022 and until July 1, 2023, subject to the payment of amounts
into the County and Mass Transit District Fund, the Local
Government Tax Fund, the Build Illinois Fund, the McCormick
Place Expansion Project Fund, the Illinois Tax Increment Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 32% of the net
revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning July 1, 2023 and until July 1, 2024,

SB4200 - 192 - LRB104 21786 TRT 37479 b
subject to the payment of amounts into the County and Mass
Transit District Fund, the Local Government Tax Fund, the
Build Illinois Fund, the McCormick Place Expansion Project
Fund, the Illinois Tax Increment Fund, and the Tax Compliance
and Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 48% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning July 1,
2024 and until July 1, 2026, subject to the payment of amounts
into the County and Mass Transit District Fund, the Local
Government Tax Fund, the Build Illinois Fund, the McCormick
Place Expansion Project Fund, the Illinois Tax Increment Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 64% of the net
revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning on July 1, 2026, subject to the payment of
amounts into the County and Mass Transit District Fund, the
Local Government Tax Fund, the Build Illinois Fund, the
McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, and the Tax Compliance and Administration Fund
as provided in this Section, the Department shall pay each
month into the Road Fund the amount estimated to represent 80%
of the net revenue realized from the taxes imposed on motor
fuel and gasohol. As used in this paragraph "motor fuel" has
the meaning given to that term in Section 1.1 of the Motor Fuel

SB4200 - 193 - LRB104 21786 TRT 37479 b
Tax Law, and "gasohol" has the meaning given to that term in
Section 3-40 of the Use Tax Act.
Until July 1, 2025, of the remainder of the moneys
received by the Department pursuant to this Act, 75% shall be
paid into the General Revenue Fund of the State treasury and
25% shall be reserved in a special account and used only for
the transfer to the Common School Fund as part of the monthly
transfer from the General Revenue Fund in accordance with
Section 8a of the State Finance Act. Beginning July 1, 2025, of
the remainder of the moneys received by the Department
pursuant to this Act, 75% shall be deposited into the General
Revenue Fund and 25% shall be deposited into the Common School
Fund.
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
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

SB4200 - 194 - LRB104 21786 TRT 37479 b
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, payroll 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
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

SB4200 - 195 - LRB104 21786 TRT 37479 b
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
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

SB4200 - 196 - LRB104 21786 TRT 37479 b
not make written objection to the Department to this
arrangement.
(Source: P.A. 103-9, eff. 6-7-23; 103-363, eff. 7-28-23;
103-592, eff. 6-7-24; 103-605, eff. 7-1-24; 104-6, Article 5,
Section 5-20, eff. 6-16-25; 104-6, Article 25, Section 25-15,
eff. 6-16-25; 104-6, Article 35, Section 35-30, eff. 6-16-25;
revised 1-12-26.)
(Text of Section after amendment by P.A. 104-457)
Sec. 9. Each serviceman required or authorized to collect
the tax herein imposed shall pay to the Department the amount
of such tax 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. On and after January 1,
2026, a certified service provider, as defined in the Leveling
the Playing Field for Illinois Retail Act, filing the return
under this Section on behalf of a serviceman maintaining a
place of business in this State shall, at the time of such
return, pay to the Department the amount of tax imposed by this
Act less a discount of 1.75%, not to exceed $1,000 per month as
provided in this Section. A serviceman maintaining a place of

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business in this State using a certified service provider to
file a return on its behalf, as provided in the Leveling the
Playing Field for Illinois Retail Act, is not eligible for the
discount. Beginning with returns due on or after January 1,
2025, the vendor's discount allowed in this Section, the
Retailers' Occupation Tax Act, the Use Tax Act, and the
Service Use Tax Act, including any local tax administered by
the Department and reported on the same return, shall not
exceed $1,000 per month in the aggregate. When determining the
discount allowed under this Section, servicemen shall include
the amount of tax that would have been due at the 1% rate but
for the 0% rate imposed under Public Act 102-700. The discount
under this Section is not allowed for the 1.25% portion of
taxes paid on aviation fuel that is subject to the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The
discount allowed under this Section is allowed only for
returns that are filed in the manner required by this Act. The
Department may disallow the discount for servicemen whose
certificate of registration is revoked at the time the return
is filed, but only if the Department's decision to revoke the
certificate of registration has become final.
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

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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. The return shall include the gross receipts which
were received during the preceding calendar month or quarter
on the following items upon which tax would have been due but
for the 0% rate imposed under Public Act 102-700: (i) food for
human consumption that is to be consumed off the premises
where it is sold (other than alcoholic beverages, food
consisting of or infused with adult use cannabis, soft drinks,
and food that has been prepared for immediate consumption);
and (ii) food prepared for immediate consumption and
transferred incident to a sale of service subject to this Act
or the Service Use Tax Act by an entity licensed under the
Hospital Licensing Act, the Nursing Home Care Act, the
Assisted Living and Shared Housing Act, the ID/DD Community
Care Act, the MC/DD Act, the Specialized Mental Health
Rehabilitation Act of 2013, or the Child Care Act of 1969, or
an entity that holds a permit issued pursuant to the Life Care

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Facilities Act. The return shall also include the amount of
tax that would have been due on the items listed in the
previous sentence but for the 0% rate imposed under Public Act
102-700.
On and after January 1, 2018, with respect to servicemen
whose annual gross receipts average $20,000 or more, all
returns required to be filed pursuant to this Act shall be
filed electronically. Servicemen who demonstrate that they do
not have access to the Internet or demonstrate hardship in
filing electronically may petition the Department to waive the
electronic filing requirement.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first 2 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;

SB4200 - 200 - LRB104 21786 TRT 37479 b
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due;
5-5. The signature of the taxpayer; and
6. Such other reasonable information as the Department
may require.
Each serviceman required or authorized to collect the tax
herein imposed on aviation fuel acquired as an incident to the
purchase of a service in this State during the preceding
calendar month shall, instead of reporting and paying tax as
otherwise required by this Section, report and pay such tax on
a separate aviation fuel tax return. The requirements related
to the return shall be as otherwise provided in this Section.
Notwithstanding any other provisions of this Act to the
contrary, servicemen transferring aviation fuel incident to
sales of service shall file all aviation fuel tax returns and
shall make all aviation fuel tax payments by electronic means
in the manner and form required by the Department. For
purposes of this Section, "aviation fuel" means jet fuel and
aviation gasoline.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
the return shall be considered valid and any amount shown to be
due on the return shall be deemed assessed.
Notwithstanding any other provision of this Act to the
contrary, servicemen subject to tax on cannabis shall file all

SB4200 - 201 - LRB104 21786 TRT 37479 b
cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
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
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.
Beginning on July 1, 2023 and through December 31, 2032, a

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serviceman may accept a Sustainable Aviation Fuel Purchase
Credit certification from an air common carrier-purchaser in
satisfaction of Service Use Tax as provided in Section 3-72 of
the Service Use Tax Act if the purchaser provides the
appropriate documentation as required by Section 3-72 of the
Service Use Tax Act. A Sustainable Aviation Fuel Purchase
Credit certification accepted by a serviceman in accordance
with this paragraph may be used by that serviceman to satisfy
service occupation tax liability (but not in satisfaction of
penalty or interest) in the amount claimed in the
certification, not to exceed 6.25% of the receipts subject to
tax from a sale of aviation fuel. In addition, for a sale of
aviation fuel to qualify to earn the Sustainable Aviation Fuel
Purchase Credit, servicemen must retain in their books and
records a certification from the producer of the aviation fuel
that the aviation fuel sold by the serviceman and for which a
sustainable aviation fuel purchase credit was earned meets the
definition of sustainable aviation fuel under Section 3-72 of
the Service Use Tax Act. The documentation must include detail
sufficient for the Department to determine the number of
gallons of sustainable aviation fuel sold.
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,

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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
Department does not exceed $50, the Department may authorize
his returns to be filed on an annual basis, with the return for
a given year being due by January 20 of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act concerning
the time within which a serviceman may file his return, in the
case of any serviceman who ceases to engage in a kind of
business which makes him responsible for filing returns under
this Act, such serviceman shall file a final return under this
Act with the Department not more than one month after
discontinuing such business.
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

SB4200 - 204 - LRB104 21786 TRT 37479 b
taxpayer who has an average monthly tax liability of $50,000
or more shall make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1,
2000, a taxpayer who has an annual tax liability of $200,000 or
more shall make all payments required by rules of the
Department by electronic funds transfer. The term "annual tax
liability" shall be the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year. The term "average monthly
tax liability" means the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year divided by 12. Beginning
on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the
Department of Revenue Law shall make all payments required by
rules of the Department by electronic funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make
payments by electronic funds transfer. All taxpayers required
to make payments by electronic funds transfer shall make those
payments for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.

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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.
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

SB4200 - 206 - LRB104 21786 TRT 37479 b
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
with the Department under separate registrations hereunder,
such serviceman shall file separate returns for each
registered business.
The net revenue realized at the 15% rate under either
Section 4 or Section 5 of the Retailers' Occupation Tax Act, as
incorporated into this Act by Section 12, shall be deposited
as follows: (i) notwithstanding the provisions of this Section
to the contrary, the net revenue realized from the portion of
the rate in excess of 5% shall be deposited into the State and
Local Sales Tax Reform Fund; and (ii) the net revenue realized
from the 5% portion of the rate shall be deposited as provided
in this Section for the 5% portion of the 6.25% general rate
imposed under this Act.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund the revenue realized
for the preceding month from the 1% tax imposed under this Act.
Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund 4% of the
revenue realized for the preceding month from the 6.25%
general rate on sales of tangible personal property other than

SB4200 - 207 - LRB104 21786 TRT 37479 b
aviation fuel sold on or after December 1, 2019. This
exception for aviation fuel only applies for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the County and Mass Transit District Fund 20% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol.
Beginning July 1, 2028, each month the Department shall
pay into the County and Mass Transit Fund 20% of the net
revenue realized for the preceding month from the 1.25% rate
on the selling price of qualified residential development
building materials.
Beginning July 1, 2028, 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 qualified residential development building
materials.
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 other than aviation
fuel sold on or after December 1, 2019. This exception for
aviation fuel only applies for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.

SB4200 - 208 - LRB104 21786 TRT 37479 b
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be
required for refunds of the 20% portion of the tax on aviation
fuel under this Act, which amount shall be deposited into the
Aviation Fuel Sales Tax Refund Fund. The Department shall only
pay moneys into the State Aviation Program Fund and the
Aviation Fuel Sales Tax Refund Fund under this Act for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the 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

SB4200 - 209 - LRB104 21786 TRT 37479 b
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
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

SB4200 - 210 - LRB104 21786 TRT 37479 b
Act, Section 9 of the Service Use Tax Act, and Section 9 of the
Service Occupation Tax Act, such Acts being hereinafter called
the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case
may be, of moneys being hereinafter called the "Tax Act
Amount", and (2) the amount transferred to the Build Illinois
Fund from the State and Local Sales Tax Reform Fund shall be
less than the Annual Specified Amount (as defined in Section 3
of the Retailers' Occupation Tax Act), an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and further provided, that if on the last
business day of any month the sum of (1) the Tax Act Amount
required to be deposited into the Build Illinois 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

SB4200 - 211 - LRB104 21786 TRT 37479 b
this clause (b) shall be payable only until such time as the
aggregate amount on deposit under each trust indenture
securing Bonds issued and outstanding pursuant to the Build
Illinois Bond Act is sufficient, taking into account any
future investment income, to fully provide, in accordance with
such indenture, for the defeasance of or the payment of the
principal of, premium, if any, and interest on the Bonds
secured by such indenture and on any Bonds expected to be
issued thereafter and all fees and costs payable with respect
thereto, all as certified by the Director of the Bureau of the
Budget (now Governor's Office of Management and Budget). If on
the last business day of any month in which Bonds are
outstanding pursuant to the Build Illinois Bond Act, the
aggregate of the moneys deposited into 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)

SB4200 - 212 - LRB104 21786 TRT 37479 b
of the preceding sentence. The moneys received by the
Department pursuant to this Act and required to be deposited
into the Build Illinois Fund are subject to the pledge, claim
and charge set forth in Section 12 of the Build Illinois Bond
Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of the sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000

SB4200 - 213 - LRB104 21786 TRT 37479 b
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000
2011 146,000,000
2012 153,000,000
2013 161,000,000
2014 170,000,000
2015 179,000,000
2016 189,000,000
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 300,000,000
2022 300,000,000
2023 300,000,000
2024 300,000,000
2025 300,000,000

SB4200 - 214 - LRB104 21786 TRT 37479 b
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034 375,000,000
2035 375,000,000
2036 450,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition

SB4200 - 215 - LRB104 21786 TRT 37479 b
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects
Fund, the Build Illinois Fund, and the McCormick Place
Expansion Project Fund pursuant to the preceding paragraphs or
in any amendments thereto hereafter enacted, for aviation fuel
sold on or after December 1, 2019, the Department shall each
month deposit into the Aviation Fuel Sales Tax Refund Fund an
amount estimated by the Department to be required for refunds
of the 80% portion of the tax on aviation fuel under this Act.
The Department shall only deposit moneys into the Aviation
Fuel Sales Tax Refund Fund under this paragraph for so long as
the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois
Tax Increment Fund 0.27% of 80% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property.

SB4200 - 216 - LRB104 21786 TRT 37479 b
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, and the
Illinois Tax Increment Fund pursuant to the preceding
paragraphs or in any amendments to this Section hereafter
enacted, beginning on the first day of the first calendar
month to occur on or after August 26, 2014 (the effective date
of Public Act 98-1098), each month, from the collections made
under Section 9 of the Use Tax Act, Section 9 of the Service
Use Tax Act, Section 9 of the Service Occupation Tax Act, and
Section 3 of the Retailers' Occupation Tax Act, the Department
shall pay into the Tax Compliance and Administration Fund, to
be used, subject to appropriation, to fund additional auditors
and compliance personnel at the Department of Revenue, an
amount equal to 1/12 of 5% of 80% of the cash receipts
collected during the preceding fiscal year by the Audit Bureau
of the Department under the Use Tax Act, the Service Use Tax
Act, the Service Occupation Tax Act, the Retailers' Occupation
Tax Act, and associated local occupation and use taxes
administered by the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, and the Tax Compliance and Administration
Fund as provided in this Section, beginning on July 1, 2018 the
Department shall pay each month into the Downstate Public
Transportation Fund the moneys required to be so paid under
Section 2-3 of the Downstate Public Transportation Act.

SB4200 - 217 - LRB104 21786 TRT 37479 b
Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year............................Total Deposit
2024....................................$200,000,000
2025....................................$206,000,000
2026....................................$212,200,000
2027....................................$218,500,000

SB4200 - 218 - LRB104 21786 TRT 37479 b
2028....................................$225,100,000
2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000
2034....................................$341,200,000
2035....................................$351,400,000
2036....................................$361,900,000
2037....................................$372,800,000
2038....................................$384,000,000
2039....................................$395,500,000
2040....................................$407,400,000
2041....................................$419,600,000
2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the County and Mass Transit
District Fund, the Local Government Tax Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 16% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning July 1,
2022 and until July 1, 2023, subject to the payment of amounts

SB4200 - 219 - LRB104 21786 TRT 37479 b
into the County and Mass Transit District Fund, the Local
Government Tax Fund, the Build Illinois Fund, the McCormick
Place Expansion Project Fund, the Illinois Tax Increment Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 32% of the net
revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning July 1, 2023 and until July 1, 2024,
subject to the payment of amounts into the County and Mass
Transit District Fund, the Local Government Tax Fund, the
Build Illinois Fund, the McCormick Place Expansion Project
Fund, the Illinois Tax Increment Fund, and the Tax Compliance
and Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 48% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning July 1,
2024 and until July 1, 2026, subject to the payment of amounts
into the County and Mass Transit District Fund, the Local
Government Tax Fund, the Build Illinois Fund, the McCormick
Place Expansion Project Fund, the Illinois Tax Increment Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 64% of the net
revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning on July 1, 2026, subject to the payment of
amounts into the County and Mass Transit District Fund, the

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Local Government Tax Fund, the Build Illinois Fund, the
McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, and the Tax Compliance and Administration Fund
as provided in this Section, the Department shall pay each
month into the Public Transportation Fund and the Downstate
Public Transportation Fund the amount estimated to represent
80% of the net revenue realized from the taxes imposed on motor
fuel and gasohol. Those moneys shall be apportioned as
follows: 85% into the Public Transportation Fund and 15% into
the Downstate Public Transportation Fund. As used in this
paragraph "motor fuel" has the meaning given to that term in
Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the
meaning given to that term in Section 3-40 of the Use Tax Act.
Until July 1, 2025, of the remainder of the moneys
received by the Department pursuant to this Act, 75% shall be
paid into the General Revenue Fund of the State treasury and
25% shall be reserved in a special account and used only for
the transfer to the Common School Fund as part of the monthly
transfer from the General Revenue Fund in accordance with
Section 8a of the State Finance Act. Beginning July 1, 2025, of
the remainder of the moneys received by the Department
pursuant to this Act, 75% shall be deposited into the General
Revenue Fund and 25% shall be deposited into the Common School
Fund.
The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the

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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
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, payroll 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

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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 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

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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
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. 103-9, eff. 6-7-23; 103-363, eff. 7-28-23;
103-592, eff. 6-7-24; 103-605, eff. 7-1-24; 104-6, Article 5,
Section 5-20, eff. 6-16-25; 104-6, Article 25, Section 25-15,
eff. 6-16-25; 104-6, Article 35, Section 35-30, eff. 6-16-25;
104-457, eff. 6-1-26.)
(35 ILCS 115/12) (from Ch. 120, par. 439.112)
Sec. 12. All of the provisions of Sections 1d, 1e, 1f, 1i,
1j, 1j.1, 1k, 1m, 1n, 1o, 2-6, 2-12, 2-29, 2-54, 2a, 2b, 2c, 3
(except as to the disposition by the Department of the tax
collected under this Act), 4 (except that the time limitation
provisions shall run from the date when the tax is due rather
than from the date when gross receipts are received), 5

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(except that the time limitation provisions on the issuance of
notices of tax liability shall run from the date when the tax
is due rather than from the date when gross receipts are
received), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5j, 5k, 5l, 5m, 5n, 5o,
6d, 7, 8, 9, 10, 11, and 12 of the Retailers' Occupation Tax
Act which are not inconsistent with this Act, and Section 3-7
of the Uniform Penalty and Interest Act shall apply, as far as
practicable, to the subject matter of this Act to the same
extent as if such provisions were included herein.
(Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23;
103-595, eff. 6-26-24; 103-605, eff. 7-1-24.)
Section 55. The Retailers' Occupation Tax Act is amended
by changing Sections 2-10 and 3 and by adding Section 5o as
follows:
(35 ILCS 120/2-10) from Ch. 120, par. 441-10
Sec. 2-10. Rate of tax. Unless otherwise provided in this
Section, the tax imposed by this Act is at the rate of 6.25% of
gross receipts from sales, which, on and after January 1,
2025, includes leases, of tangible personal property made in
the course of business.
Beginning July 1, 2028, with respect to building materials
used in a qualified residential development, as defined in
Section 605-1121 of the Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois,

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the tax is imposed at the rate of 1.25%.
Beginning on July 1, 2000 and through December 31, 2000,
with respect to motor fuel, as defined in Section 1.1 of the
Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of
the Use Tax Act, the tax is imposed at the rate of 1.25%.
Beginning on August 6, 2010 through August 15, 2010, and
beginning again on August 5, 2022 through August 14, 2022,
with respect to sales tax holiday items as defined in Section
2-8 of this Act, the tax is imposed at the rate of 1.25%.
Within 14 days after July 1, 2000 (the effective date of
Public Act 91-872), each retailer of motor fuel and gasohol
shall cause the following notice to be posted in a prominently
visible place on each retail dispensing device that is used to
dispense motor fuel or gasohol in the State of Illinois: "As of
July 1, 2000, the State of Illinois has eliminated the State's
share of sales tax on motor fuel and gasohol through December
31, 2000. The price on this pump should reflect the
elimination of the tax." The notice shall be printed in bold
print on a sign that is no smaller than 4 inches by 8 inches.
The sign shall be clearly visible to customers. Any retailer
who fails to post or maintain a required sign through December
31, 2000 is guilty of a petty offense for which the fine shall
be $500 per day per each retail premises where a violation
occurs.
With respect to gasohol, as defined in the Use Tax Act, the
tax imposed by this Act applies to (i) 70% of the proceeds of

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

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Tax Act, with no less than 1% and no more than 10% biodiesel,
the tax imposed by this Act applies to (i) 80% of the proceeds
of sales made on or after July 1, 2003 and on or before
December 31, 2018 and (ii) 100% of the proceeds of sales made
after December 31, 2018 and before January 1, 2024. On and
after January 1, 2024 and on or before December 31, 2030, the
taxation of biodiesel, renewable diesel, and biodiesel blends
shall be as provided in Section 3-5.1 of the Use Tax Act. If,
at any time, however, the tax under this Act on sales of
biodiesel blends, as defined in the Use Tax Act, with no less
than 1% and no more than 10% biodiesel is imposed at the rate
of 1.25%, then the tax imposed by this Act applies to 100% of
the proceeds of sales of biodiesel blends with no less than 1%
and no more than 10% biodiesel made during that time.
With respect to biodiesel, as defined in the Use Tax Act,
and biodiesel blends, as defined in the Use Tax Act, with more
than 10% but no more than 99% biodiesel, the tax imposed by
this Act does not apply to the proceeds of sales made on or
after July 1, 2003 and on or before December 31, 2023. On and
after January 1, 2024 and on or before December 31, 2030, the
taxation of biodiesel, renewable diesel, and biodiesel blends
shall be as provided in Section 3-5.1 of the Use Tax Act.
Until July 1, 2022 and from July 1, 2023 through December
31, 2025, with respect to food for human consumption that is to
be consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult

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use cannabis, soft drinks, and food that has been prepared for
immediate consumption), the tax is imposed at the rate of 1%.
Beginning July 1, 2022 and until July 1, 2023, with respect to
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
food consisting of or infused with adult use cannabis, soft
drinks, and food that has been prepared for immediate
consumption), the tax is imposed at the rate of 0%. On and
after January 1, 2026, food for human consumption that is to be
consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, candy, and food that has been
prepared for immediate consumption) is exempt from the tax
imposed by this Act.
With respect to prescription and nonprescription
medicines, drugs, medical appliances, products classified as
Class III medical devices by the United States Food and Drug
Administration that are used for cancer treatment pursuant to
a prescription, as well as any accessories and components
related to those devices, modifications to a motor vehicle for
the purpose of rendering it usable by a person with a
disability, and insulin, blood sugar testing materials,
syringes, and needles used by human diabetics, the tax is
imposed at the rate of 1%. For the purposes of this Section,
until September 1, 2009: the term "soft drinks" means any
complete, finished, ready-to-use, non-alcoholic drink, whether

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

SB4200 - 230 - LRB104 21786 TRT 37479 b
regardless of the location of the vending machine.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "food for human consumption that
is to be consumed off the premises where it is sold" does not
include candy. For purposes of this Section, "candy" means a
preparation of sugar, honey, or other natural or artificial
sweeteners in combination with chocolate, fruits, nuts or
other ingredients or flavorings in the form of bars, drops, or
pieces. "Candy" does not include any preparation that contains
flour or requires refrigeration.
Notwithstanding any other provisions of this Act,
beginning September 1, 2009, "nonprescription medicines and
drugs" does not include grooming and hygiene products. For
purposes of this Section, "grooming and hygiene products"
includes, but is not limited to, soaps and cleaning solutions,
shampoo, toothpaste, mouthwash, antiperspirants, and sun tan
lotions and screens, unless those products are available by
prescription only, regardless of whether the products meet the
definition of "over-the-counter-drugs". For the purposes of
this paragraph, "over-the-counter-drug" means a drug for human
use that contains a label that identifies the product as a drug
as required by 21 CFR 201.66. The "over-the-counter-drug"
label includes:
(A) a "Drug Facts" panel; or
(B) a statement of the "active ingredient(s)" with a
list of those ingredients contained in the compound,

SB4200 - 231 - LRB104 21786 TRT 37479 b
substance or preparation.
Beginning on January 1, 2014 (the effective date of Public
Act 98-122), "prescription and nonprescription medicines and
drugs" includes medical cannabis purchased from a registered
dispensing organization under the Compassionate Use of Medical
Cannabis Program Act.
As used in this Section, "adult use cannabis" means
cannabis subject to tax under the Cannabis Cultivation
Privilege Tax Law and the Cannabis Purchaser Excise Tax Law
and does not include cannabis subject to tax under the
Compassionate Use of Medical Cannabis Program Act.
(Source: P.A. 103-9, eff. 6-7-23; 103-154, eff. 6-30-23;
103-592, eff. 1-1-25; 103-781, eff. 8-5-24; 104-417, eff.
8-15-25.)
(35 ILCS 120/3)
(Text of Section before amendment by P.A. 104-457)
Sec. 3. Except as provided in this Section, on or before
the twentieth day of each calendar month, every person engaged
in the business of selling, which, on and after January 1,
2025, includes leasing, tangible personal property at retail
in this State during the preceding calendar month shall file a
return with the Department, stating:
1. The name of the seller;
2. His residence address and the address of his
principal place of business and the address of the

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principal place of business (if that is a different
address) from which he engages in the business of selling
tangible personal property at retail in this State;
3. Total amount of receipts received by him during the
preceding calendar month or quarter, as the case may be,
from sales of tangible personal property, and from
services furnished, by him during such preceding calendar
month or quarter;
4. Total amount received by him during the preceding
calendar month or quarter on charge and time sales of
tangible personal property, and from services furnished,
by him prior to the month or quarter for which the return
is filed;
5. Deductions allowed by law;
6. Gross receipts which were received by him during
the preceding calendar month or quarter and upon the basis
of which the tax is imposed, including gross receipts on
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
food consisting of or infused with adult use cannabis,
soft drinks, and food that has been prepared for immediate
consumption) which were received during the preceding
calendar month or quarter and upon which tax would have
been due but for the 0% rate imposed under Public Act
102-700;
7. The amount of credit provided in Section 2d of this

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Act;
8. The amount of tax due, including the amount of tax
that would have been due on food for human consumption
that is to be consumed off the premises where it is sold
(other than alcoholic beverages, food consisting of or
infused with adult use cannabis, soft drinks, and food
that has been prepared for immediate consumption) but for
the 0% rate imposed under Public Act 102-700;
9. The signature of the taxpayer; and
10. Such other reasonable information as the
Department may require.
In the case of leases, except as otherwise provided in
this Act, the lessor must remit for each tax return period only
the tax applicable to that part of the selling price actually
received during such tax return period.
On and after January 1, 2018, except for returns required
to be filed prior to January 1, 2023 for motor vehicles,
watercraft, aircraft, and trailers that are required to be
registered with an agency of this State, with respect to
retailers whose annual gross receipts average $20,000 or more,
all returns required to be filed pursuant to this Act shall be
filed electronically. On and after January 1, 2023, with
respect to retailers whose annual gross receipts average
$20,000 or more, all returns required to be filed pursuant to
this Act, including, but not limited to, returns for motor
vehicles, watercraft, aircraft, and trailers that are required

SB4200 - 234 - LRB104 21786 TRT 37479 b
to be registered with an agency of this State, shall be filed
electronically. Retailers who demonstrate that they do not
have access to the Internet or demonstrate hardship in filing
electronically may petition the Department to waive the
electronic filing requirement.
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

SB4200 - 235 - LRB104 21786 TRT 37479 b
September 1, 2004 shall be disallowed. Manufacturer's Purchase
Credit reported on annual returns due on or after January 1,
2005 will be disallowed for periods prior to September 1,
2004. No Manufacturer's Purchase Credit may be used after
September 30, 2003 through August 31, 2004 to satisfy any tax
liability imposed under this Act, including any audit
liability.
Beginning on July 1, 2023 and through December 31, 2032, a
retailer may accept a Sustainable Aviation Fuel Purchase
Credit certification from an air common carrier-purchaser in
satisfaction of Use Tax on aviation fuel as provided in
Section 3-87 of the Use Tax Act if the purchaser provides the
appropriate documentation as required by Section 3-87 of the
Use Tax Act. A Sustainable Aviation Fuel Purchase Credit
certification accepted by a retailer in accordance with this
paragraph may be used by that retailer to satisfy Retailers'
Occupation Tax liability (but not in satisfaction of penalty
or interest) in the amount claimed in the certification, not
to exceed 6.25% of the receipts subject to tax from a sale of
aviation fuel. In addition, for a sale of aviation fuel to
qualify to earn the Sustainable Aviation Fuel Purchase Credit,
retailers must retain in their books and records a
certification from the producer of the aviation fuel that the
aviation fuel sold by the retailer and for which a sustainable
aviation fuel purchase credit was earned meets the definition
of sustainable aviation fuel under Section 3-87 of the Use Tax

SB4200 - 236 - LRB104 21786 TRT 37479 b
Act. The documentation must include detail sufficient for the
Department to determine the number of gallons of sustainable
aviation fuel sold.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first 2 months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from
which he engages in the business of selling tangible
personal property at retail in this State;
3. The total amount of taxable receipts received by
him during the preceding calendar month from sales of
tangible personal property by him during such preceding
calendar month, including receipts from charge and time
sales, but less all deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due; and
6. Such other reasonable information as the Department
may require.
Every person engaged in the business of selling aviation
fuel at retail in this State during the preceding calendar

SB4200 - 237 - LRB104 21786 TRT 37479 b
month shall, instead of reporting and paying tax as otherwise
required by this Section, report and pay such tax on a separate
aviation fuel tax return. The requirements related to the
return shall be as otherwise provided in this Section.
Notwithstanding any other provisions of this Act to the
contrary, retailers selling aviation fuel shall file all
aviation fuel tax returns and shall make all aviation fuel tax
payments by electronic means in the manner and form required
by the Department. For purposes of this Section, "aviation
fuel" means jet fuel and aviation gasoline.
Beginning on October 1, 2003, any person who is not a
licensed distributor, importing distributor, or manufacturer,
as defined in the Liquor Control Act of 1934, but is engaged in
the business of selling, at retail, alcoholic liquor shall
file a statement with the Department of Revenue, in a format
and at a time prescribed by the Department, showing the total
amount paid for alcoholic liquor purchased during the
preceding month and such other information as is reasonably
required by the Department. The Department may adopt rules to
require that this statement be filed in an electronic or
telephonic format. Such rules may provide for exceptions from
the filing requirements of this paragraph. For the purposes of
this paragraph, the term "alcoholic liquor" shall have the
meaning prescribed in the Liquor Control Act of 1934.
Beginning on October 1, 2003, every distributor, importing
distributor, and manufacturer of alcoholic liquor as defined

SB4200 - 238 - LRB104 21786 TRT 37479 b
in the Liquor Control Act of 1934, shall file a statement with
the Department of Revenue, no later than the 10th day of the
month for the preceding month during which transactions
occurred, by electronic means, showing the total amount of
gross receipts from the sale of alcoholic liquor sold or
distributed during the preceding month to purchasers;
identifying the purchaser to whom it was sold or distributed;
the purchaser's tax registration number; and such other
information reasonably required by the Department. A
distributor, importing distributor, or manufacturer of
alcoholic liquor must personally deliver, mail, or provide by
electronic means to each retailer listed on the monthly
statement a report containing a cumulative total of that
distributor's, importing distributor's, or manufacturer's
total sales of alcoholic liquor to that retailer no later than
the 10th day of the month for the preceding month during which
the transaction occurred. The distributor, importing
distributor, or manufacturer shall notify the retailer as to
the method by which the distributor, importing distributor, or
manufacturer will provide the sales information. If the
retailer is unable to receive the sales information by
electronic means, the distributor, importing distributor, or
manufacturer shall furnish the sales information by personal
delivery or by mail. For purposes of this paragraph, the term
"electronic means" includes, but is not limited to, the use of
a secure Internet website, e-mail, or facsimile.

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If a total amount of less than $1 is payable, refundable or
creditable, such amount shall be disregarded if it is less
than 50 cents and shall be increased to $1 if it is 50 cents or
more.
Notwithstanding any other provision of this Act to the
contrary, retailers subject to tax on cannabis shall file all
cannabis tax returns and shall make all cannabis tax payments
by electronic means in the manner and form required by the
Department.
Beginning October 1, 1993, a taxpayer who has an average
monthly tax liability of $150,000 or more shall make all
payments required by rules of the Department by electronic
funds transfer. Beginning October 1, 1994, a taxpayer who has
an average monthly tax liability of $100,000 or more shall
make all payments required by rules of the Department by
electronic funds transfer. Beginning October 1, 1995, a
taxpayer who has an average monthly tax liability of $50,000
or more shall make all payments required by rules of the
Department by electronic funds transfer. Beginning October 1,
2000, a taxpayer who has an annual tax liability of $200,000 or
more shall make all payments required by rules of the
Department by electronic funds transfer. The term "annual tax
liability" shall be the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year. The term "average monthly

SB4200 - 240 - LRB104 21786 TRT 37479 b
tax liability" shall be the sum of the taxpayer's liabilities
under this Act, and under all other State and local occupation
and use tax laws administered by the Department, for the
immediately preceding calendar year divided by 12. Beginning
on October 1, 2002, a taxpayer who has a tax liability in the
amount set forth in subsection (b) of Section 2505-210 of the
Department of Revenue Law shall make all payments required by
rules of the Department by electronic funds transfer.
Before August 1 of each year beginning in 1993, the
Department shall notify all taxpayers required to make
payments by electronic funds transfer. All taxpayers required
to make payments by electronic funds transfer shall make those
payments for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those
payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
Any amount which is required to be shown or reported on any
return or other document under this Act shall, if such amount
is not a whole-dollar amount, be increased to the nearest

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whole-dollar amount in any case where the fractional part of a
dollar is 50 cents or more, and decreased to the nearest
whole-dollar amount where the fractional part of a dollar is
less than 50 cents.
If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
authorize his returns to be filed on a quarter annual basis,
with the return for January, February, and March of a given
year being due by April 20 of such year; with the return for
April, May, and June of a given year being due by July 20 of
such year; with the return for July, August, and September of a
given year being due by October 20 of such year, and with the
return for October, November, and December of a given year
being due by January 20 of the following year.
If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
liability with the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January 20
of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act concerning
the time within which a retailer may file his return, in the

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case of any retailer who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such retailer shall file a final return under this Act with the
Department not more than one month after discontinuing such
business.
Where the same person has more than one business
registered with the Department under separate registrations
under this Act, such person may not file each return that is
due as a single return covering all such registered
businesses, but shall file separate returns for each such
registered business.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, except as otherwise provided in this
Section, every retailer selling this kind of tangible personal
property shall file, with the Department, upon a form to be
prescribed and supplied by the Department, a separate return
for each such item of tangible personal property which the
retailer sells, except that if, in the same transaction, (i) a
retailer of aircraft, watercraft, motor vehicles, or trailers
transfers more than one aircraft, watercraft, motor vehicle,
or trailer to another aircraft, watercraft, motor vehicle
retailer, or trailer retailer for the purpose of resale or
(ii) a retailer of aircraft, watercraft, motor vehicles, or
trailers transfers more than one aircraft, watercraft, motor
vehicle, or trailer to a purchaser for use as a qualifying

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rolling stock as provided in Section 2-5 of this Act, then that
seller may report the transfer of all aircraft, watercraft,
motor vehicles, or trailers involved in that transaction to
the Department on the same uniform invoice-transaction
reporting return form. For purposes of this Section,
"watercraft" means a Class 2, Class 3, or Class 4 watercraft as
defined in Section 3-2 of the Boat Registration and Safety
Act, a personal watercraft, or any boat equipped with an
inboard motor.
In addition, with respect to motor vehicles, watercraft,
aircraft, and trailers that are required to be registered with
an agency of this State, every person who is engaged in the
business of leasing or renting such items and who, in
connection with such business, sells any such item to a
retailer for the purpose of resale is, notwithstanding any
other provision of this Section to the contrary, authorized to
meet the return-filing requirement of this Act by reporting
the transfer of all the aircraft, watercraft, motor vehicles,
or trailers transferred for resale during a month to the
Department on the same uniform invoice-transaction reporting
return form on or before the 20th of the month following the
month in which the transfer takes place. Notwithstanding any
other provision of this Act to the contrary, all returns filed
under this paragraph must be filed by electronic means in the
manner and form as required by the Department.
Any retailer who sells only motor vehicles, watercraft,

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aircraft, or trailers that are required to be registered with
an agency of this State, so that all retailers' occupation tax
liability is required to be reported, and is reported, on such
transaction reporting returns and who is not otherwise
required to file monthly or quarterly returns, need not file
monthly or quarterly returns. However, those retailers shall
be required to file returns on an annual basis.
The transaction reporting return, in the case of motor
vehicles or trailers that are required to be registered with
an agency of this State, shall be the same document as the
Uniform Invoice referred to in Section 5-402 of the Illinois
Vehicle Code and must show the name and address of the seller;
the name and address of the purchaser; the amount of the
selling price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 1 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling
price; the amount of tax due from the retailer with respect to
such transaction; the amount of tax collected from the
purchaser by the retailer on such transaction (or satisfactory
evidence that such tax is not due in that particular instance,
if that is claimed to be the fact); the place and date of the
sale; a sufficient identification of the property sold; such
other information as is required in Section 5-402 of the

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Illinois Vehicle Code, and such other information as the
Department may reasonably require.
The transaction reporting return in the case of watercraft
or aircraft must show the name and address of the seller; the
name and address of the purchaser; the amount of the selling
price including the amount allowed by the retailer for
traded-in property, if any; the amount allowed by the retailer
for the traded-in tangible personal property, if any, to the
extent to which Section 1 of this Act allows an exemption for
the value of traded-in property; the balance payable after
deducting such trade-in allowance from the total selling
price; the amount of tax due from the retailer with respect to
such transaction; the amount of tax collected from the
purchaser by the retailer on such transaction (or satisfactory
evidence that such tax is not due in that particular instance,
if that is claimed to be the fact); the place and date of the
sale, a sufficient identification of the property sold, and
such other information as the Department may reasonably
require.
Such transaction reporting return shall be filed not later
than 20 days after the day of delivery of the item that is
being sold, but may be filed by the retailer at any time sooner
than that if he chooses to do so. The transaction reporting
return and tax remittance or proof of exemption from the
Illinois use tax may be transmitted to the Department by way of
the State agency with which, or State officer with whom the

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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 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.

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If the user who would otherwise pay tax to the retailer
wants the transaction reporting return filed and the payment
of the tax or proof of exemption made to the Department before
the retailer is willing to take these actions and such user has
not paid the tax to the retailer, such user may certify to the
fact of such delay by the retailer and may (upon the Department
being satisfied of the truth of such certification) transmit
the information required by the transaction reporting return
and the remittance for tax or proof of exemption directly to
the Department and obtain his tax receipt or exemption
determination, in which event the transaction reporting return
and tax remittance (if a tax payment was required) shall be
credited by the Department to the proper retailer's account
with the Department, but without the vendor's discount
provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the
same amount and in the same form in which it would be remitted
if the tax had been remitted to the Department by the retailer.
On and after January 1, 2025, with respect to the lease of
trailers, other than semitrailers as defined in Section 1-187
of the Illinois Vehicle Code, that are required to be
registered with an agency of this State and that are subject to
the tax on lease receipts under this Act, notwithstanding any
other provision of this Act to the contrary, for the purpose of
reporting and paying tax under this Act on those lease
receipts, lessors shall file returns in addition to and

SB4200 - 248 - LRB104 21786 TRT 37479 b
separate from the transaction reporting return. Lessors shall
file those lease returns and make payment to the Department by
electronic means on or before the 20th day of each month
following the month, quarter, or year, as applicable, in which
lease receipts were received. All lease receipts received by
the lessor from the lease of those trailers during the same
reporting period shall be reported and tax shall be paid on a
single return form to be prescribed by the Department.
Refunds made by the seller during the preceding return
period to purchasers, on account of tangible personal property
returned to the seller, shall be allowed as a deduction under
subdivision 5 of his monthly or quarterly return, as the case
may be, in case the seller had theretofore included the
receipts from the sale of such tangible personal property in a
return filed by him and had paid the tax imposed by this Act
with respect to such receipts.
Where the seller is a corporation, the return filed on
behalf of such corporation shall be signed by the president,
vice-president, secretary, or treasurer or by the properly
accredited agent of such corporation.
Where the seller is a limited liability company, the
return filed on behalf of the limited liability company shall
be signed by a manager, member, or properly accredited agent
of the limited liability company.
Except as provided in this Section, the retailer filing
the return under this Section shall, at the time of filing such

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return, pay to the Department the amount of tax imposed by this
Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
on and after January 1, 1990, or $5 per calendar year,
whichever is greater, which is allowed to reimburse the
retailer for the expenses incurred in keeping records,
preparing and filing returns, remitting the tax and supplying
data to the Department on request. A a certified service
provider, as defined in the Leveling the Playing Field for
Illinois Retail Act, filing the return under this Section on
behalf of a remote retailer or a retailer maintaining a place
of business in this State shall, at the time of such return,
pay to the Department the amount of tax imposed by this Act
less a discount of 1.75%. A remote retailer or a retailer
maintaining a place of business in this State using a
certified service provider to file a return on its behalf, as
provided in the Leveling the Playing Field for Illinois Retail
Act, is not eligible for the discount. Beginning with returns
due on or after January 1, 2025, the vendor's discount allowed
in this Section, the Service Occupation Tax Act, the Use Tax
Act, and the Service Use Tax Act, including any local tax
administered by the Department and reported on the same
return, shall not exceed $1,000 per month in the aggregate for
returns other than transaction returns filed during the month.
When determining the discount allowed under this Section,
retailers shall include the amount of tax that would have been
due at the 1% rate but for the 0% rate imposed under Public Act

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102-700. When determining the discount allowed under this
Section, retailers shall include the amount of tax that would
have been due at the 6.25% rate but for the 1.25% rate imposed
on sales tax holiday items under Public Act 102-700. The
discount under this Section is not allowed for the 1.25%
portion of taxes paid on aviation fuel that is subject to the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133. Any prepayment made pursuant to Section 2d of this Act
shall be included in the amount on which such discount is
computed. In the case of retailers who report and pay the tax
on a transaction by transaction basis, as provided in this
Section, such discount shall be taken with each such tax
remittance instead of when such retailer files his periodic
return, but, beginning with returns due on or after January 1,
2025, the vendor's discount allowed under this Section and the
Use Tax Act, including any local tax administered by the
Department and reported on the same transaction return, shall
not exceed $1,000 per month for all transaction returns filed
during the month. The discount allowed under this Section is
allowed only for returns that are filed in the manner required
by this Act. The Department may disallow the discount for
retailers whose certificate of registration is revoked at the
time the return is filed, but only if the Department's
decision to revoke the certificate of registration has become
final.
Before October 1, 2000, if the taxpayer's average monthly

SB4200 - 251 - LRB104 21786 TRT 37479 b
tax liability to the Department under this Act, the Use Tax
Act, the Service Occupation Tax Act, and the Service Use Tax
Act, excluding any liability for prepaid sales tax to be
remitted in accordance with Section 2d of this Act, was
$10,000 or more during the preceding 4 complete calendar
quarters, he shall file a return with the Department each
month by the 20th day of the month next following the month
during which such tax liability is incurred and shall make
payments to the Department on or before the 7th, 15th, 22nd and
last day of the month during which such liability is incurred.
On and after October 1, 2000, if the taxpayer's average
monthly tax liability to the Department under this Act, the
Use Tax Act, the Service Occupation Tax Act, and the Service
Use Tax Act, excluding any liability for prepaid sales tax to
be remitted in accordance with Section 2d of this Act, was
$20,000 or more during the preceding 4 complete calendar
quarters, he shall file a return with the Department each
month by the 20th day of the month next following the month
during which such tax liability is incurred and shall make
payment to the Department on or before the 7th, 15th, 22nd and
last day of the month during which such liability is incurred.
If the month during which such tax liability is incurred began
prior to January 1, 1985, each payment shall be in an amount
equal to 1/4 of the taxpayer's actual liability for the month
or an amount set by the Department not to exceed 1/4 of the
average monthly liability of the taxpayer to the Department

SB4200 - 252 - LRB104 21786 TRT 37479 b
for the preceding 4 complete calendar quarters (excluding the
month of highest liability and the month of lowest liability
in such 4 quarter period). If the month during which such tax
liability is incurred begins on or after January 1, 1985 and
prior to January 1, 1987, each payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the
month or 27.5% of the taxpayer's liability for the same
calendar month of the preceding year. If the month during
which such tax liability is incurred begins on or after
January 1, 1987 and prior to January 1, 1988, each payment
shall be in an amount equal to 22.5% of the taxpayer's actual
liability for the month or 26.25% of the taxpayer's liability
for the same calendar month of the preceding year. If the month
during which such tax liability is incurred begins on or after
January 1, 1988, and prior to January 1, 1989, or begins on or
after January 1, 1996, each payment shall be in an amount equal
to 22.5% of the taxpayer's actual liability for the month or
25% of the taxpayer's liability for the same calendar month of
the preceding year. If the month during which such tax
liability is incurred begins on or after January 1, 1989, and
prior to January 1, 1996, each payment shall be in an amount
equal to 22.5% of the taxpayer's actual liability for the
month or 25% of the taxpayer's liability for the same calendar
month of the preceding year or 100% of the taxpayer's actual
liability for the quarter monthly reporting period. The amount
of such quarter monthly payments shall be credited against the

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

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taxpayer's average monthly liability to the Department as
computed for each calendar quarter of the 4 preceding complete
calendar quarter period is less than $20,000. However, if a
taxpayer can show the Department that a substantial change in
the taxpayer's business has occurred which causes the taxpayer
to anticipate that his average monthly tax liability for the
reasonably foreseeable future will fall below the $20,000
threshold stated above, then such taxpayer may petition the
Department for a change in such taxpayer's reporting status.
The Department shall change such taxpayer's reporting status
unless it finds that such change is seasonal in nature and not
likely to be long term. Quarter monthly payment status shall
be determined under this paragraph as if the rate reduction to
0% in Public Act 102-700 on food for human consumption that is
to be consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption) had not occurred. For quarter monthly
payments due under this paragraph on or after July 1, 2023 and
through June 30, 2024, "25% of the taxpayer's liability for
the same calendar month of the preceding year" shall be
determined as if the rate reduction to 0% in Public Act 102-700
had not occurred. Quarter monthly payment status shall be
determined under this paragraph as if the rate reduction to
1.25% in Public Act 102-700 on sales tax holiday items had not
occurred. For quarter monthly payments due on or after July 1,

SB4200 - 255 - LRB104 21786 TRT 37479 b
2023 and through June 30, 2024, "25% of the taxpayer's
liability for the same calendar month of the preceding year"
shall be determined as if the rate reduction to 1.25% in Public
Act 102-700 on sales tax holiday items had not occurred. If any
such quarter monthly payment is not paid at the time or in the
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

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

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The provisions of this paragraph apply on and after
October 1, 2001. Without regard to whether a taxpayer is
required to make quarter monthly payments as specified above,
any taxpayer who is required by Section 2d of this Act to
collect and remit prepaid taxes and has collected prepaid
taxes that average in excess of $20,000 per month during the
preceding 4 complete calendar quarters shall file a return
with the Department as required by Section 2f and shall make
payments to the Department on or before the 7th, 15th, 22nd,
and last day of the month during which the liability is
incurred. Each payment shall be in an amount equal to 22.5% of
the taxpayer's actual liability for the month or 25% of the
taxpayer's liability for the same calendar month of the
preceding year. The amount of the quarter monthly payments
shall be credited against the final tax liability of the
taxpayer's return for that month filed under this Section or
Section 2f, as the case may be. Once applicable, the
requirement of the making of quarter monthly payments to the
Department pursuant to this paragraph shall continue until the
taxpayer's average monthly prepaid tax collections during the
preceding 4 complete calendar quarters (excluding the month of
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

SB4200 - 258 - LRB104 21786 TRT 37479 b
at the time or in the amount required, the taxpayer shall be
liable for penalties and interest on such difference, except
insofar as the taxpayer has previously made payments for that
month in excess of the minimum payments previously due.
If any payment provided for in this Section exceeds the
taxpayer's liabilities under this Act, the Use Tax Act, the
Service Occupation Tax Act, and the Service Use Tax Act, as
shown on an original monthly return, the Department shall, if
requested by the taxpayer, issue to the taxpayer a credit
memorandum no later than 30 days after the date of payment. The
credit evidenced by such credit memorandum may be assigned by
the taxpayer to a similar taxpayer under this Act, the Use Tax
Act, the Service Occupation Tax Act, or the Service Use Tax
Act, in accordance with reasonable rules and regulations to be
prescribed by the Department. If no such request is made, the
taxpayer may credit such excess payment against tax liability
subsequently to be remitted to the Department under this Act,
the Use Tax Act, the Service Occupation Tax Act, or the Service
Use Tax Act, in accordance with reasonable rules and
regulations prescribed by the Department. If the Department
subsequently determined that all or any part of the credit
taken was not actually due to the taxpayer, the taxpayer's
vendor's discount shall be reduced, if necessary, to reflect
the difference between the credit taken and that actually due,
and that taxpayer shall be liable for penalties and interest
on such difference.

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If a retailer of motor fuel is entitled to a credit under
Section 2d of this Act which exceeds the taxpayer's liability
to the Department under this Act for the month for which the
taxpayer is filing a return, the Department shall issue the
taxpayer a credit memorandum for the excess.
The net revenue realized at the 15% rate under either
Section 4 or Section 5 of this Act shall be deposited as
follows: (i) notwithstanding the provisions of this Section to
the contrary, the net revenue realized from the portion of the
rate in excess of 5% shall be deposited into the State and
Local Sales Tax Reform Fund; and (ii) the net revenue realized
from the 5% portion of the rate shall be deposited as provided
in this Section for the 5% portion of the 6.25% general rate
imposed under this Act.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund, a special fund in the
State treasury which is hereby created, the net revenue
realized for the preceding month from the 1% tax imposed under
this Act.
Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund, a special
fund in the State treasury which is hereby created, 4% of the
net revenue realized for the preceding month from the 6.25%
general rate other than aviation fuel sold on or after
December 1, 2019. This exception for aviation fuel only
applies for so long as the revenue use requirements of 49

SB4200 - 260 - LRB104 21786 TRT 37479 b
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the County and Mass Transit District Fund 20% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol. If, in any
month, the tax on sales tax holiday items, as defined in
Section 2-8, is imposed at the rate of 1.25%, then the
Department shall pay 20% of the net revenue realized for that
month from the 1.25% rate on the selling price of sales tax
holiday items into the County and Mass Transit District Fund.
Beginning July 1, 2028, 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 qualified residential development
building materials.
Beginning July 1, 2028, 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 qualified residential development building
materials.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the net revenue
realized for the preceding month from the 6.25% general rate
on the selling price of tangible personal property other than
aviation fuel sold on or after December 1, 2019. This
exception for aviation fuel only applies for so long as the

SB4200 - 261 - LRB104 21786 TRT 37479 b
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be
required for refunds of the 20% portion of the tax on aviation
fuel under this Act, which amount shall be deposited into the
Aviation Fuel Sales Tax Refund Fund. The Department shall only
pay moneys into the State Aviation Program Fund and the
Aviation Fuel Sales Tax Refund Fund under this Act for so long
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the Local Government Tax Fund 80% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of motor fuel and gasohol. If, in any month, the
tax on sales tax holiday items, as defined in Section 2-8, is
imposed at the rate of 1.25%, then the Department shall pay 80%
of the net revenue realized for that month from the 1.25% rate
on the selling price of sales tax holiday items into the Local
Government Tax Fund.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the

SB4200 - 262 - LRB104 21786 TRT 37479 b
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2011, each month the Department shall
pay into the Clean Air Act Permit Fund 80% of the net revenue
realized for the preceding month from the 6.25% general rate
on the selling price of sorbents used in Illinois in the
process of sorbent injection as used to comply with the
Environmental Protection Act or the federal Clean Air Act, but
the total payment into the Clean Air Act Permit Fund under this
Act and the Use Tax Act shall not exceed $2,000,000 in any
fiscal year.
Beginning July 1, 2013, each month the Department shall
pay into the Underground Storage Tank Fund from the proceeds
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

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into the fund, excluding payments made pursuant to this
paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, the Service
Use Tax Act, the Service Occupation Tax Act, and this Act, each
month the Department shall deposit $500,000 into the State
Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to this Act,
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

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below for fiscal years 1986 through 1993:
Fiscal Year Annual Specified Amount
1986 $54,800,000
1987 $76,650,000
1988 $80,480,000
1989 $88,510,000
1990 $115,330,000
1991 $145,470,000
1992 $182,730,000
1993 $206,520,000;
and means the Certified Annual Debt Service Requirement (as
defined in Section 13 of the Build Illinois Bond Act) or the
Tax Act Amount, whichever is greater, for fiscal year 1994 and
each fiscal year thereafter; and further provided, that if on
the last business day of any month the sum of (1) the Tax Act
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

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

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payments pursuant to clause (b) of the first sentence of this
paragraph and shall reduce the amount otherwise payable for
such fiscal year pursuant to that clause (b). The moneys
received by the Department pursuant to this Act and required
to be deposited into the Build Illinois Fund are subject to the
pledge, claim and charge set forth in Section 12 of the Build
Illinois Bond Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority
provided under Section 8.25f of the State Finance Act, but not
in excess of sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
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

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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
2017 199,000,000
2018 210,000,000
2019 221,000,000
2020 233,000,000
2021 300,000,000
2022 300,000,000
2023 300,000,000
2024 300,000,000

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2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034 375,000,000
2035 375,000,000
2036 450,000,000
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
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

SB4200 - 269 - LRB104 21786 TRT 37479 b
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, for aviation fuel sold on or after December 1, 2019,
the Department shall each month deposit into the Aviation Fuel
Sales Tax Refund Fund an amount estimated by the Department to
be required for refunds of the 80% portion of the tax on
aviation fuel under this Act. The Department shall only
deposit moneys into the Aviation Fuel Sales Tax Refund Fund
under this paragraph for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois
Tax Increment Fund 0.27% of 80% of the net revenue realized for

SB4200 - 270 - LRB104 21786 TRT 37479 b
the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, and the
Illinois Tax Increment Fund pursuant to the preceding
paragraphs or in any amendments to this Section hereafter
enacted, beginning on the first day of the first calendar
month to occur on or after August 26, 2014 (the effective date
of Public Act 98-1098), each month, from the collections made
under Section 9 of the Use Tax Act, Section 9 of the Service
Use Tax Act, Section 9 of the Service Occupation Tax Act, and
Section 3 of the Retailers' Occupation Tax Act, the Department
shall pay into the Tax Compliance and Administration Fund, to
be used, subject to appropriation, to fund additional auditors
and compliance personnel at the Department of Revenue, an
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

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each month into the Downstate Public Transportation Fund the
moneys required to be so paid under Section 2-3 of the
Downstate Public Transportation Act.
Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year.............................Total Deposit
2024.....................................$200,000,000

SB4200 - 272 - LRB104 21786 TRT 37479 b
2025....................................$206,000,000
2026....................................$212,200,000
2027....................................$218,500,000
2028....................................$225,100,000
2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000
2034....................................$341,200,000
2035....................................$351,400,000
2036....................................$361,900,000
2037....................................$372,800,000
2038....................................$384,000,000
2039....................................$395,500,000
2040....................................$407,400,000
2041....................................$419,600,000
2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the County and Mass Transit
District Fund, the Local Government Tax Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount

SB4200 - 273 - LRB104 21786 TRT 37479 b
estimated to represent 16% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning July 1,
2022 and until July 1, 2023, subject to the payment of amounts
into the County and Mass Transit District Fund, the Local
Government Tax Fund, the Build Illinois Fund, the McCormick
Place Expansion Project Fund, the Illinois Tax Increment Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 32% of the net
revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning July 1, 2023 and until July 1, 2024,
subject to the payment of amounts into the County and Mass
Transit District Fund, the Local Government Tax Fund, the
Build Illinois Fund, the McCormick Place Expansion Project
Fund, the Illinois Tax Increment Fund, and the Tax Compliance
and Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 48% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning July 1,
2024 and until July 1, 2026, subject to the payment of amounts
into the County and Mass Transit District Fund, the Local
Government Tax Fund, the Build Illinois Fund, the McCormick
Place Expansion Project Fund, the Illinois Tax Increment Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 64% of the net

SB4200 - 274 - LRB104 21786 TRT 37479 b
revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning on July 1, 2026, subject to the payment of
amounts into the County and Mass Transit District Fund, the
Local Government Tax Fund, the Build Illinois Fund, the
McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, and the Tax Compliance and Administration Fund
as provided in this Section, the Department shall pay each
month into the Road Fund the amount estimated to represent 80%
of the net revenue realized from the taxes imposed on motor
fuel and gasohol. As used in this paragraph "motor fuel" has
the meaning given to that term in Section 1.1 of the Motor Fuel
Tax Law, and "gasohol" has the meaning given to that term in
Section 3-40 of the Use Tax Act.
Until July 1, 2025, of the remainder of the moneys
received by the Department pursuant to this Act, 75% thereof
shall be paid into the State treasury and 25% shall be reserved
in a special account and used only for the transfer to the
Common School Fund as part of the monthly transfer from the
General Revenue Fund in accordance with Section 8a of the
State Finance Act. Beginning July 1, 2025, of the remainder of
the moneys received by the Department pursuant to this Act,
75% shall be deposited into the General Revenue Fund and 25%
shall be deposited into the Common School Fund.
The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not

SB4200 - 275 - LRB104 21786 TRT 37479 b
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 for a penalty equal to 1/6 of 1% of the tax due from
such taxpayer under this Act during the period to be

SB4200 - 276 - LRB104 21786 TRT 37479 b
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
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.

SB4200 - 277 - LRB104 21786 TRT 37479 b
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
paid out during that month as refunds to taxpayers for
overpayment of liability.
For greater simplicity of administration, manufacturers,
importers and wholesalers whose products are sold at retail in
Illinois by numerous retailers, and who wish to do so, may
assume the responsibility for accounting and paying to the
Department all tax accruing under this Act with respect to
such sales, if the retailers who are affected do not make
written objection to the Department to this arrangement.
Any person who promotes, organizes, or provides retail
selling space for concessionaires or other types of sellers at
the Illinois State Fair, DuQuoin State Fair, county fairs,
local fairs, art shows, flea markets, and similar exhibitions
or events, including any transient merchant as defined by
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

SB4200 - 278 - LRB104 21786 TRT 37479 b
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. 103-9, eff. 6-7-23; 103-154, eff. 6-30-23;
103-363, eff. 7-28-23; 103-592, Article 75, Section 75-20,
eff. 1-1-25; 103-592, Article 110, Section 110-20, eff.
6-7-24; 103-605, eff. 7-1-24; 103-1055, eff. 12-20-24; 104-6,

SB4200 - 279 - LRB104 21786 TRT 37479 b
Article 5, Section 5-25, eff. 6-16-25; 104-6, Article 25,
Section 25-20, eff. 6-16-25; 104-6, Article 35, Section 35-35,
eff. 6-16-25; revised 1-12-26.)
(Text of Section after amendment by P.A. 104-457)
Sec. 3. Except as provided in this Section, on or before
the twentieth day of each calendar month, every person engaged
in the business of selling, which, on and after January 1,
2025, includes leasing, tangible personal property at retail
in this State during the preceding calendar month shall file a
return with the Department, stating:
1. The name of the seller;
2. His residence address and the address of his
principal place of business and the address of the
principal place of business (if that is a different
address) from which he engages in the business of selling
tangible personal property at retail in this State;
3. Total amount of receipts received by him during the
preceding calendar month or quarter, as the case may be,
from sales of tangible personal property, and from
services furnished, by him during such preceding calendar
month or quarter;
4. Total amount received by him during the preceding
calendar month or quarter on charge and time sales of
tangible personal property, and from services furnished,
by him prior to the month or quarter for which the return

SB4200 - 280 - LRB104 21786 TRT 37479 b
is filed;
5. Deductions allowed by law;
6. Gross receipts which were received by him during
the preceding calendar month or quarter and upon the basis
of which the tax is imposed, including gross receipts on
food for human consumption that is to be consumed off the
premises where it is sold (other than alcoholic beverages,
food consisting of or infused with adult use cannabis,
soft drinks, and food that has been prepared for immediate
consumption) which were received during the preceding
calendar month or quarter and upon which tax would have
been due but for the 0% rate imposed under Public Act
102-700;
7. The amount of credit provided in Section 2d of this
Act;
8. The amount of tax due, including the amount of tax
that would have been due on food for human consumption
that is to be consumed off the premises where it is sold
(other than alcoholic beverages, food consisting of or
infused with adult use cannabis, soft drinks, and food
that has been prepared for immediate consumption) but for
the 0% rate imposed under Public Act 102-700;
9. The signature of the taxpayer; and
10. Such other reasonable information as the
Department may require.
In the case of leases, except as otherwise provided in

SB4200 - 281 - LRB104 21786 TRT 37479 b
this Act, the lessor must remit for each tax return period only
the tax applicable to that part of the selling price actually
received during such tax return period.
On and after January 1, 2018, except for returns required
to be filed prior to January 1, 2023 for motor vehicles,
watercraft, aircraft, and trailers that are required to be
registered with an agency of this State, with respect to
retailers whose annual gross receipts average $20,000 or more,
all returns required to be filed pursuant to this Act shall be
filed electronically. On and after January 1, 2023, with
respect to retailers whose annual gross receipts average
$20,000 or more, all returns required to be filed pursuant to
this Act, including, but not limited to, returns for motor
vehicles, watercraft, aircraft, and trailers that are required
to be registered with an agency of this State, shall be filed
electronically. Retailers who demonstrate that they do not
have access to the Internet or demonstrate hardship in filing
electronically may petition the Department to waive the
electronic filing requirement.
If a taxpayer fails to sign a return within 30 days after
the proper notice and demand for signature by the Department,
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.

SB4200 - 282 - LRB104 21786 TRT 37479 b
Prior to October 1, 2003 and on and after September 1,
2004, a retailer may accept a Manufacturer's Purchase Credit
certification from a purchaser in satisfaction of Use Tax as
provided in Section 3-85 of the Use Tax Act if the purchaser
provides the appropriate documentation as required by Section
3-85 of the Use Tax Act. A Manufacturer's Purchase Credit
certification, accepted by a retailer prior to October 1, 2003
and on and after September 1, 2004 as provided in Section 3-85
of the Use Tax Act, may be used by that retailer to satisfy
Retailers' Occupation Tax liability in the amount claimed in
the certification, not to exceed 6.25% of the receipts subject
to tax from a qualifying purchase. A Manufacturer's Purchase
Credit reported on any original or amended return filed under
this Act after October 20, 2003 for reporting periods prior to
September 1, 2004 shall be disallowed. Manufacturer's Purchase
Credit reported on annual returns due on or after January 1,
2005 will be disallowed for periods prior to September 1,
2004. No Manufacturer's Purchase Credit may be used after
September 30, 2003 through August 31, 2004 to satisfy any tax
liability imposed under this Act, including any audit
liability.
Beginning on July 1, 2023 and through December 31, 2032, a
retailer may accept a Sustainable Aviation Fuel Purchase
Credit certification from an air common carrier-purchaser in
satisfaction of Use Tax on aviation fuel as provided in
Section 3-87 of the Use Tax Act if the purchaser provides the

SB4200 - 283 - LRB104 21786 TRT 37479 b
appropriate documentation as required by Section 3-87 of the
Use Tax Act. A Sustainable Aviation Fuel Purchase Credit
certification accepted by a retailer in accordance with this
paragraph may be used by that retailer to satisfy Retailers'
Occupation Tax liability (but not in satisfaction of penalty
or interest) in the amount claimed in the certification, not
to exceed 6.25% of the receipts subject to tax from a sale of
aviation fuel. In addition, for a sale of aviation fuel to
qualify to earn the Sustainable Aviation Fuel Purchase Credit,
retailers must retain in their books and records a
certification from the producer of the aviation fuel that the
aviation fuel sold by the retailer and for which a sustainable
aviation fuel purchase credit was earned meets the definition
of sustainable aviation fuel under Section 3-87 of the Use Tax
Act. The documentation must include detail sufficient for the
Department to determine the number of gallons of sustainable
aviation fuel sold.
The Department may require returns to be filed on a
quarterly basis. If so required, a return for each calendar
quarter shall be filed on or before the twentieth day of the
calendar month following the end of such calendar quarter. The
taxpayer shall also file a return with the Department for each
of the first 2 months of each calendar quarter, on or before
the twentieth day of the following calendar month, stating:
1. The name of the seller;
2. The address of the principal place of business from

SB4200 - 284 - LRB104 21786 TRT 37479 b
which he engages in the business of selling tangible
personal property at retail in this State;
3. The total amount of taxable receipts received by
him during the preceding calendar month from sales of
tangible personal property by him during such preceding
calendar month, including receipts from charge and time
sales, but less all deductions allowed by law;
4. The amount of credit provided in Section 2d of this
Act;
5. The amount of tax due; and
6. Such other reasonable information as the Department
may require.
Every person engaged in the business of selling aviation
fuel at retail in this State during the preceding calendar
month shall, instead of reporting and paying tax as otherwise
required by this Section, report and pay such tax on a separate
aviation fuel tax return. The requirements related to the
return shall be as otherwise provided in this Section.
Notwithstanding any other provisions of this Act to the
contrary, retailers selling aviation fuel shall file all
aviation fuel tax returns and shall make all aviation fuel tax
payments by electronic means in the manner and form required
by the Department. For purposes of this Section, "aviation
fuel" means jet fuel and aviation gasoline.
Beginning on October 1, 2003, any person who is not a
licensed distributor, importing distributor, or manufacturer,

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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

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

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

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payments for a minimum of one year beginning on October 1.
Any taxpayer not required to make payments by electronic
funds transfer may make payments by electronic funds transfer
with the permission of the Department.
All taxpayers required to make payment by electronic funds
transfer and any taxpayers authorized to voluntarily make
payments by electronic funds transfer shall make those
payments in the manner authorized by the Department.
The Department shall adopt such rules as are necessary to
effectuate a program of electronic funds transfer and the
requirements of this Section.
Any amount which is required to be shown or reported on any
return or other document under this Act shall, if such amount
is not a whole-dollar amount, be increased to the nearest
whole-dollar amount in any case where the fractional part of a
dollar is 50 cents or more, and decreased to the nearest
whole-dollar amount where the fractional part of a dollar is
less than 50 cents.
If the retailer is otherwise required to file a monthly
return and if the retailer's average monthly tax liability to
the Department does not exceed $200, the Department may
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

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given year being due by October 20 of such year, and with the
return for October, November, and December of a given year
being due by January 20 of the following year.
If the retailer is otherwise required to file a monthly or
quarterly return and if the retailer's average monthly tax
liability with the Department does not exceed $50, the
Department may authorize his returns to be filed on an annual
basis, with the return for a given year being due by January 20
of the following year.
Such quarter annual and annual returns, as to form and
substance, shall be subject to the same requirements as
monthly returns.
Notwithstanding any other provision in this Act concerning
the time within which a retailer may file his return, in the
case of any retailer who ceases to engage in a kind of business
which makes him responsible for filing returns under this Act,
such retailer shall file a final return under this Act with the
Department not more than one month after discontinuing such
business.
Where the same person has more than one business
registered with the Department under separate registrations
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,

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aircraft, and trailers that are required to be registered with
an agency of this State, except as otherwise provided in this
Section, every retailer selling this kind of tangible personal
property shall file, with the Department, upon a form to be
prescribed and supplied by the Department, a separate return
for each such item of tangible personal property which the
retailer sells, except that if, in the same transaction, (i) a
retailer of aircraft, watercraft, motor vehicles, or trailers
transfers more than one aircraft, watercraft, motor vehicle,
or trailer to another aircraft, watercraft, motor vehicle
retailer, or trailer retailer for the purpose of resale or
(ii) a retailer of aircraft, watercraft, motor vehicles, or
trailers transfers more than one aircraft, watercraft, motor
vehicle, or trailer to a purchaser for use as a qualifying
rolling stock as provided in Section 2-5 of this Act, then that
seller may report the transfer of all aircraft, watercraft,
motor vehicles, or trailers involved in that transaction to
the Department on the same uniform invoice-transaction
reporting return form. For purposes of this Section,
"watercraft" means a Class 2, Class 3, or Class 4 watercraft as
defined in Section 3-2 of the Boat Registration and Safety
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

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business of leasing or renting such items and who, in
connection with such business, sells any such item to a
retailer for the purpose of resale is, notwithstanding any
other provision of this Section to the contrary, authorized to
meet the return-filing requirement of this Act by reporting
the transfer of all the aircraft, watercraft, motor vehicles,
or trailers transferred for resale during a month to the
Department on the same uniform invoice-transaction reporting
return form on or before the 20th of the month following the
month in which the transfer takes place. Notwithstanding any
other provision of this Act to the contrary, all returns filed
under this paragraph must be filed by electronic means in the
manner and form as required by the Department.
Any retailer who sells only motor vehicles, watercraft,
aircraft, or trailers that are required to be registered with
an agency of this State, so that all retailers' occupation tax
liability is required to be reported, and is reported, on such
transaction reporting returns and who is not otherwise
required to file monthly or quarterly returns, need not file
monthly or quarterly returns. However, those retailers shall
be required to file returns on an annual basis.
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;

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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
deducting such trade-in allowance from the total selling
price; the amount of tax due from the retailer with respect to

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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
satisfied that the particular sale is tax-exempt) which such

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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
and tax remittance (if a tax payment was required) shall be

SB4200 - 295 - LRB104 21786 TRT 37479 b
credited by the Department to the proper retailer's account
with the Department, but without the vendor's discount
provided for in this Section being allowed. When the user pays
the tax directly to the Department, he shall pay the tax in the
same amount and in the same form in which it would be remitted
if the tax had been remitted to the Department by the retailer.
On and after January 1, 2025, with respect to the lease of
trailers, other than semitrailers as defined in Section 1-187
of the Illinois Vehicle Code, that are required to be
registered with an agency of this State and that are subject to
the tax on lease receipts under this Act, notwithstanding any
other provision of this Act to the contrary, for the purpose of
reporting and paying tax under this Act on those lease
receipts, lessors shall file returns in addition to and
separate from the transaction reporting return. Lessors shall
file those lease returns and make payment to the Department by
electronic means on or before the 20th day of each month
following the month, quarter, or year, as applicable, in which
lease receipts were received. All lease receipts received by
the lessor from the lease of those trailers during the same
reporting period shall be reported and tax shall be paid on a
single return form to be prescribed by the Department.
Refunds made by the seller during the preceding return
period to purchasers, on account of tangible personal property
returned to the seller, shall be allowed as a deduction under
subdivision 5 of his monthly or quarterly return, as the case

SB4200 - 296 - LRB104 21786 TRT 37479 b
may be, in case the seller had theretofore included the
receipts from the sale of such tangible personal property in a
return filed by him and had paid the tax imposed by this Act
with respect to such receipts.
Where the seller is a corporation, the return filed on
behalf of such corporation shall be signed by the president,
vice-president, secretary, or treasurer or by the properly
accredited agent of such corporation.
Where the seller is a limited liability company, the
return filed on behalf of the limited liability company shall
be signed by a manager, member, or properly accredited agent
of the limited liability company.
Except as provided in this Section, the retailer filing
the return under this Section shall, at the time of filing such
return, pay to the Department the amount of tax imposed by this
Act less a discount of 2.1% prior to January 1, 1990 and 1.75%
on and after January 1, 1990, or $5 per calendar year,
whichever is greater, which is allowed to reimburse the
retailer for the expenses incurred in keeping records,
preparing and filing returns, remitting the tax and supplying
data to the Department on request. A certified service
provider, as defined in the Leveling the Playing Field for
Illinois Retail Act, filing the return under this Section on
behalf of a remote retailer or a retailer maintaining a place
of business in this State shall, at the time of such return,
pay to the Department the amount of tax imposed by this Act

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less a discount of 1.75%. A remote retailer or a retailer
maintaining a place of business in this State using a
certified service provider to file a return on its behalf, as
provided in the Leveling the Playing Field for Illinois Retail
Act, is not eligible for the discount. Beginning with returns
due on or after January 1, 2025, the vendor's discount allowed
in this Section, the Service Occupation Tax Act, the Use Tax
Act, and the Service Use Tax Act, including any local tax
administered by the Department and reported on the same
return, shall not exceed $1,000 per month in the aggregate for
returns other than transaction returns filed during the month.
When determining the discount allowed under this Section,
retailers shall include the amount of tax that would have been
due at the 1% rate but for the 0% rate imposed under Public Act
102-700. When determining the discount allowed under this
Section, retailers shall include the amount of tax that would
have been due at the 6.25% rate but for the 1.25% rate imposed
on sales tax holiday items under Public Act 102-700. The
discount under this Section is not allowed for the 1.25%
portion of taxes paid on aviation fuel that is subject to the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133. Any prepayment made pursuant to Section 2d of this Act
shall be included in the amount on which such discount is
computed. In the case of retailers who report and pay the tax
on a transaction by transaction basis, as provided in this
Section, such discount shall be taken with each such tax

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remittance instead of when such retailer files his periodic
return, but, beginning with returns due on or after January 1,
2025, the vendor's discount allowed under this Section and the
Use Tax Act, including any local tax administered by the
Department and reported on the same transaction return, shall
not exceed $1,000 per month for all transaction returns filed
during the month. The discount allowed under this Section is
allowed only for returns that are filed in the manner required
by this Act. The Department may disallow the discount for
retailers whose certificate of registration is revoked at the
time the return is filed, but only if the Department's
decision to revoke the certificate of registration has become
final.
Before October 1, 2000, if the taxpayer's average monthly
tax liability to the Department under this Act, the Use Tax
Act, the Service Occupation Tax Act, and the Service Use Tax
Act, excluding any liability for prepaid sales tax to be
remitted in accordance with Section 2d of this Act, was
$10,000 or more during the preceding 4 complete calendar
quarters, he shall file a return with the Department each
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

SB4200 - 299 - LRB104 21786 TRT 37479 b
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 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

SB4200 - 300 - LRB104 21786 TRT 37479 b
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
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

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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 change in such taxpayer's reporting status.
The Department shall change such taxpayer's reporting status
unless it finds that such change is seasonal in nature and not
likely to be long term. Quarter monthly payment status shall

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be determined under this paragraph as if the rate reduction to
0% in Public Act 102-700 on food for human consumption that is
to be consumed off the premises where it is sold (other than
alcoholic beverages, food consisting of or infused with adult
use cannabis, soft drinks, and food that has been prepared for
immediate consumption) had not occurred. For quarter monthly
payments due under this paragraph on or after July 1, 2023 and
through June 30, 2024, "25% of the taxpayer's liability for
the same calendar month of the preceding year" shall be
determined as if the rate reduction to 0% in Public Act 102-700
had not occurred. Quarter monthly payment status shall be
determined under this paragraph as if the rate reduction to
1.25% in Public Act 102-700 on sales tax holiday items had not
occurred. For quarter monthly payments due on or after July 1,
2023 and through June 30, 2024, "25% of the taxpayer's
liability for the same calendar month of the preceding year"
shall be determined as if the rate reduction to 1.25% in Public
Act 102-700 on sales tax holiday items had not occurred. If any
such quarter monthly payment is not paid at the time or in the
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

SB4200 - 303 - LRB104 21786 TRT 37479 b
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 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

SB4200 - 304 - LRB104 21786 TRT 37479 b
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 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

SB4200 - 305 - LRB104 21786 TRT 37479 b
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
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

SB4200 - 306 - LRB104 21786 TRT 37479 b
Act, the Service Occupation Tax Act, or the Service Use Tax
Act, in accordance with reasonable rules and regulations to be
prescribed by the Department. If no such request is made, the
taxpayer may credit such excess payment against tax liability
subsequently to be remitted to the Department under this Act,
the Use Tax Act, the Service Occupation Tax Act, or the Service
Use Tax Act, in accordance with reasonable rules and
regulations prescribed by the Department. If the Department
subsequently determined that all or any part of the credit
taken was not actually due to the taxpayer, the taxpayer's
vendor's discount shall be reduced, if necessary, to reflect
the difference between the credit taken and that actually due,
and that taxpayer shall be liable for penalties and interest
on such difference.
If a retailer of motor fuel is entitled to a credit under
Section 2d of this Act which exceeds the taxpayer's liability
to the Department under this Act for the month for which the
taxpayer is filing a return, the Department shall issue the
taxpayer a credit memorandum for the excess.
The net revenue realized at the 15% rate under either
Section 4 or Section 5 of this Act shall be deposited as
follows: (i) notwithstanding the provisions of this Section to
the contrary, the net revenue realized from the portion of the
rate in excess of 5% shall be deposited into the State and
Local Sales Tax Reform Fund; and (ii) the net revenue realized
from the 5% portion of the rate shall be deposited as provided

SB4200 - 307 - LRB104 21786 TRT 37479 b
in this Section for the 5% portion of the 6.25% general rate
imposed under this Act.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund, a special fund in the
State treasury which is hereby created, the net revenue
realized for the preceding month from the 1% tax imposed under
this Act.
Beginning January 1, 1990, each month the Department shall
pay into the County and Mass Transit District Fund, a special
fund in the State treasury which is hereby created, 4% of the
net revenue realized for the preceding month from the 6.25%
general rate other than aviation fuel sold on or after
December 1, 2019. This exception for aviation fuel only
applies for so long as the revenue use requirements of 49
U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the County and Mass Transit District Fund 20% of the
net revenue realized for the preceding month from the 1.25%
rate on the selling price of motor fuel and gasohol. If, in any
month, the tax on sales tax holiday items, as defined in
Section 2-8, is imposed at the rate of 1.25%, then the
Department shall pay 20% of the net revenue realized for that
month from the 1.25% rate on the selling price of sales tax
holiday items into the County and Mass Transit District Fund.
Beginning July 1, 2028, each month the Department shall
pay into the County and Mass Transit District Fund 20% of the

SB4200 - 308 - LRB104 21786 TRT 37479 b
net revenue realized for the preceding month from the 1.25%
rate on the selling price of qualified residential development
building materials.
Beginning July 1, 2028, 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 qualified residential development building
materials.
Beginning January 1, 1990, each month the Department shall
pay into the Local Government Tax Fund 16% of the net revenue
realized for the preceding month from the 6.25% general rate
on the selling price of tangible personal property other than
aviation fuel sold on or after December 1, 2019. This
exception for aviation fuel only applies for so long as the
revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.
47133 are binding on the State.
For aviation fuel sold on or after December 1, 2019, each
month the Department shall pay into the State Aviation Program
Fund 20% of the net revenue realized for the preceding month
from the 6.25% general rate on the selling price of aviation
fuel, less an amount estimated by the Department to be
required for refunds of the 20% portion of the tax on aviation
fuel under this Act, which amount shall be deposited into the
Aviation Fuel Sales Tax Refund Fund. The Department shall only
pay moneys into the State Aviation Program Fund and the
Aviation Fuel Sales Tax Refund Fund under this Act for so long

SB4200 - 309 - LRB104 21786 TRT 37479 b
as the revenue use requirements of 49 U.S.C. 47107(b) and 49
U.S.C. 47133 are binding on the State.
Beginning August 1, 2000, each month the Department shall
pay into the Local Government Tax Fund 80% of the net revenue
realized for the preceding month from the 1.25% rate on the
selling price of motor fuel and gasohol. If, in any month, the
tax on sales tax holiday items, as defined in Section 2-8, is
imposed at the rate of 1.25%, then the Department shall pay 80%
of the net revenue realized for that month from the 1.25% rate
on the selling price of sales tax holiday items into the Local
Government Tax Fund.
Beginning October 1, 2009, each month the Department shall
pay into the Capital Projects Fund an amount that is equal to
an amount estimated by the Department to represent 80% of the
net revenue realized for the preceding month from the sale of
candy, grooming and hygiene products, and soft drinks that had
been taxed at a rate of 1% prior to September 1, 2009 but that
are now taxed at 6.25%.
Beginning July 1, 2011, each month the Department shall
pay into the Clean Air Act Permit Fund 80% of the net revenue
realized for the preceding month from the 6.25% general rate
on the selling price of sorbents used in Illinois in the
process of sorbent injection as used to comply with the
Environmental Protection Act or the federal Clean Air Act, but
the total payment into the Clean Air Act Permit Fund under this
Act and the Use Tax Act shall not exceed $2,000,000 in any

SB4200 - 310 - LRB104 21786 TRT 37479 b
fiscal year.
Beginning July 1, 2013, each month the Department shall
pay into the Underground Storage Tank Fund from the proceeds
collected under this Act, the Use Tax Act, the Service Use Tax
Act, and the Service Occupation Tax Act an amount equal to the
average monthly deficit in the Underground Storage Tank Fund
during the prior year, as certified annually by the Illinois
Environmental Protection Agency, but the total payment into
the Underground Storage Tank Fund under this Act, the Use Tax
Act, the Service Use Tax Act, and the Service Occupation Tax
Act shall not exceed $18,000,000 in any State fiscal year. As
used in this paragraph, the "average monthly deficit" shall be
equal to the difference between the average monthly claims for
payment by the fund and the average monthly revenues deposited
into the fund, excluding payments made pursuant to this
paragraph.
Beginning July 1, 2015, of the remainder of the moneys
received by the Department under the Use Tax Act, the Service
Use Tax Act, the Service Occupation Tax Act, and this Act, each
month the Department shall deposit $500,000 into the State
Crime Laboratory Fund.
Of the remainder of the moneys received by the Department
pursuant to this Act, (a) 1.75% thereof shall be paid into the
Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on
and after July 1, 1989, 3.8% thereof shall be paid into the
Build Illinois Fund; provided, however, that if in any fiscal

SB4200 - 311 - LRB104 21786 TRT 37479 b
year the sum of (1) the aggregate of 2.2% or 3.8%, as the case
may be, of the moneys received by the Department and required
to be paid into the Build Illinois Fund pursuant to this Act,
Section 9 of the Use Tax Act, Section 9 of the Service Use Tax
Act, and Section 9 of the Service Occupation Tax Act, such Acts
being hereinafter called the "Tax Acts" and such aggregate of
2.2% or 3.8%, as the case may be, of moneys being hereinafter
called the "Tax Act Amount", and (2) the amount transferred to
the Build Illinois Fund from the State and Local Sales Tax
Reform Fund shall be less than the Annual Specified Amount (as
hereinafter defined), an amount equal to the difference shall
be immediately paid into the Build Illinois Fund from other
moneys received by the Department pursuant to the Tax Acts;
the "Annual Specified Amount" means the amounts specified
below for fiscal years 1986 through 1993:
Fiscal Year Annual Specified Amount
1986 $54,800,000
1987 $76,650,000
1988 $80,480,000
1989 $88,510,000
1990 $115,330,000
1991 $145,470,000
1992 $182,730,000
1993 $206,520,000;
and means the Certified Annual Debt Service Requirement (as
defined in Section 13 of the Build Illinois Bond Act) or the

SB4200 - 312 - LRB104 21786 TRT 37479 b
Tax Act Amount, whichever is greater, for fiscal year 1994 and
each fiscal year thereafter; and further provided, that if on
the last business day of any month the sum of (1) the Tax Act
Amount required to be deposited into the Build Illinois Bond
Account in the Build Illinois Fund during such month and (2)
the amount transferred to the Build Illinois Fund from the
State and Local Sales Tax Reform Fund shall have been less than
1/12 of the Annual Specified Amount, an amount equal to the
difference shall be immediately paid into the Build Illinois
Fund from other moneys received by the Department pursuant to
the Tax Acts; and, further provided, that in no event shall the
payments required under the preceding proviso result in
aggregate payments into the Build Illinois Fund pursuant to
this clause (b) for any fiscal year in excess of the greater of
(i) the Tax Act Amount or (ii) the Annual Specified Amount for
such fiscal year. The amounts payable into the Build Illinois
Fund under clause (b) of the first sentence in this paragraph
shall be payable only until such time as the aggregate amount
on deposit under each trust indenture securing Bonds issued
and outstanding pursuant to the Build Illinois Bond Act is
sufficient, taking into account any future investment income,
to fully provide, in accordance with such indenture, for the
defeasance of or the payment of the principal of, premium, if
any, and interest on the Bonds secured by such indenture and on
any Bonds expected to be issued thereafter and all fees and
costs payable with respect thereto, all as certified by the

SB4200 - 313 - LRB104 21786 TRT 37479 b
Director of the Bureau of the Budget (now Governor's Office of
Management and Budget). If on the last business day of any
month in which Bonds are outstanding pursuant to the Build
Illinois Bond Act, the aggregate of moneys deposited into the
Build Illinois Bond Account in the Build Illinois Fund in such
month shall be less than the amount required to be transferred
in such month from the Build Illinois Bond Account to the Build
Illinois Bond Retirement and Interest Fund pursuant to Section
13 of the Build Illinois Bond Act, an amount equal to such
deficiency shall be immediately paid from other moneys
received by the Department pursuant to the Tax Acts to the
Build Illinois Fund; provided, however, that any amounts paid
to the Build Illinois Fund in any fiscal year pursuant to this
sentence shall be deemed to constitute payments pursuant to
clause (b) of the first sentence of this paragraph and shall
reduce the amount otherwise payable for such fiscal year
pursuant to that clause (b). The moneys received by the
Department pursuant to this Act and required to be deposited
into the Build Illinois Fund are subject to the pledge, claim
and charge set forth in Section 12 of the Build Illinois Bond
Act.
Subject to payment of amounts into the Build Illinois Fund
as provided in the preceding paragraph or in any amendment
thereto hereafter enacted, the following specified monthly
installment of the amount requested in the certificate of the
Chairman of the Metropolitan Pier and Exposition Authority

SB4200 - 314 - LRB104 21786 TRT 37479 b
provided under Section 8.25f of the State Finance Act, but not
in excess of sums designated as "Total Deposit", shall be
deposited in the aggregate from collections under Section 9 of
the Use Tax Act, Section 9 of the Service Use Tax Act, Section
9 of the Service Occupation Tax Act, and Section 3 of the
Retailers' Occupation Tax Act into the McCormick Place
Expansion Project Fund in the specified fiscal years.
Fiscal Year Total Deposit
1993 $0
1994 53,000,000
1995 58,000,000
1996 61,000,000
1997 64,000,000
1998 68,000,000
1999 71,000,000
2000 75,000,000
2001 80,000,000
2002 93,000,000
2003 99,000,000
2004 103,000,000
2005 108,000,000
2006 113,000,000
2007 119,000,000
2008 126,000,000
2009 132,000,000
2010 139,000,000

SB4200 - 315 - LRB104 21786 TRT 37479 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 300,000,000
2022 300,000,000
2023 300,000,000
2024 300,000,000
2025 300,000,000
2026 300,000,000
2027 375,000,000
2028 375,000,000
2029 375,000,000
2030 375,000,000
2031 375,000,000
2032 375,000,000
2033 375,000,000
2034 375,000,000
2035 375,000,000
2036 450,000,000

SB4200 - 316 - LRB104 21786 TRT 37479 b
and
each fiscal year
thereafter that bonds
are outstanding under
Section 13.2 of the
Metropolitan Pier and
Exposition Authority Act,
but not after fiscal year 2060.
Beginning July 20, 1993 and in each month of each fiscal
year thereafter, one-eighth of the amount requested in the
certificate of the Chairman of the Metropolitan Pier and
Exposition Authority for that fiscal year, less the amount
deposited into the McCormick Place Expansion Project Fund by
the State Treasurer in the respective month under subsection
(g) of Section 13 of the Metropolitan Pier and Exposition
Authority Act, plus cumulative deficiencies in the deposits
required under this Section for previous months and years,
shall be deposited into the McCormick Place Expansion Project
Fund, until the full amount requested for the fiscal year, but
not in excess of the amount specified above as "Total
Deposit", has been deposited.
Subject to payment of amounts into the Capital Projects
Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, for aviation fuel sold on or after December 1, 2019,

SB4200 - 317 - LRB104 21786 TRT 37479 b
the Department shall each month deposit into the Aviation Fuel
Sales Tax Refund Fund an amount estimated by the Department to
be required for refunds of the 80% portion of the tax on
aviation fuel under this Act. The Department shall only
deposit moneys into the Aviation Fuel Sales Tax Refund Fund
under this paragraph for so long as the revenue use
requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are
binding on the State.
Subject to payment of amounts into the Build Illinois Fund
and the McCormick Place Expansion Project Fund pursuant to the
preceding paragraphs or in any amendments thereto hereafter
enacted, beginning July 1, 1993 and ending on September 30,
2013, the Department shall each month pay into the Illinois
Tax Increment Fund 0.27% of 80% of the net revenue realized for
the preceding month from the 6.25% general rate on the selling
price of tangible personal property.
Subject to payment of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, and the
Illinois Tax Increment Fund pursuant to the preceding
paragraphs or in any amendments to this Section hereafter
enacted, beginning on the first day of the first calendar
month to occur on or after August 26, 2014 (the effective date
of Public Act 98-1098), each month, from the collections made
under Section 9 of the Use Tax Act, Section 9 of the Service
Use Tax Act, Section 9 of the Service Occupation Tax Act, and
Section 3 of the Retailers' Occupation Tax Act, the Department

SB4200 - 318 - LRB104 21786 TRT 37479 b
shall pay into the Tax Compliance and Administration Fund, to
be used, subject to appropriation, to fund additional auditors
and compliance personnel at the Department of Revenue, an
amount equal to 1/12 of 5% of 80% of the cash receipts
collected during the preceding fiscal year by the Audit Bureau
of the Department under the Use Tax Act, the Service Use Tax
Act, the Service Occupation Tax Act, the Retailers' Occupation
Tax Act, and associated local occupation and use taxes
administered by the Department.
Subject to payments of amounts into the Build Illinois
Fund, the McCormick Place Expansion Project Fund, the Illinois
Tax Increment Fund, the Energy Infrastructure Fund, and the
Tax Compliance and Administration Fund as provided in this
Section, beginning on July 1, 2018 the Department shall pay
each month into the Downstate Public Transportation Fund the
moneys required to be so paid under Section 2-3 of the
Downstate Public Transportation Act.
Subject to successful execution and delivery of a
public-private agreement between the public agency and private
entity and completion of the civic build, beginning on July 1,
2023, of the remainder of the moneys received by the
Department under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and this Act, the Department shall
deposit the following specified deposits in the aggregate from
collections under the Use Tax Act, the Service Use Tax Act, the
Service Occupation Tax Act, and the Retailers' Occupation Tax

SB4200 - 319 - LRB104 21786 TRT 37479 b
Act, as required under Section 8.25g of the State Finance Act
for distribution consistent with the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
The moneys received by the Department pursuant to this Act and
required to be deposited into the Civic and Transit
Infrastructure Fund are subject to the pledge, claim and
charge set forth in Section 25-55 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
As used in this paragraph, "civic build", "private entity",
"public-private agreement", and "public agency" have the
meanings provided in Section 25-10 of the Public-Private
Partnership for Civic and Transit Infrastructure Project Act.
Fiscal Year.............................Total Deposit
2024.....................................$200,000,000
2025....................................$206,000,000
2026....................................$212,200,000
2027....................................$218,500,000
2028....................................$225,100,000
2029....................................$288,700,000
2030....................................$298,900,000
2031....................................$309,300,000
2032....................................$320,100,000
2033....................................$331,200,000
2034....................................$341,200,000
2035....................................$351,400,000
2036....................................$361,900,000

SB4200 - 320 - LRB104 21786 TRT 37479 b
2037....................................$372,800,000
2038....................................$384,000,000
2039....................................$395,500,000
2040....................................$407,400,000
2041....................................$419,600,000
2042....................................$432,200,000
2043....................................$445,100,000
Beginning July 1, 2021 and until July 1, 2022, subject to
the payment of amounts into the County and Mass Transit
District Fund, the Local Government Tax Fund, the Build
Illinois Fund, the McCormick Place Expansion Project Fund, the
Illinois Tax Increment Fund, and the Tax Compliance and
Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 16% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning July 1,
2022 and until July 1, 2023, subject to the payment of amounts
into the County and Mass Transit District Fund, the Local
Government Tax Fund, the Build Illinois Fund, the McCormick
Place Expansion Project Fund, the Illinois Tax Increment Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 32% of the net
revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning July 1, 2023 and until July 1, 2024,
subject to the payment of amounts into the County and Mass

SB4200 - 321 - LRB104 21786 TRT 37479 b
Transit District Fund, the Local Government Tax Fund, the
Build Illinois Fund, the McCormick Place Expansion Project
Fund, the Illinois Tax Increment Fund, and the Tax Compliance
and Administration Fund as provided in this Section, the
Department shall pay each month into the Road Fund the amount
estimated to represent 48% of the net revenue realized from
the taxes imposed on motor fuel and gasohol. Beginning July 1,
2024 and until July 1, 2026, subject to the payment of amounts
into the County and Mass Transit District Fund, the Local
Government Tax Fund, the Build Illinois Fund, the McCormick
Place Expansion Project Fund, the Illinois Tax Increment Fund,
and the Tax Compliance and Administration Fund as provided in
this Section, the Department shall pay each month into the
Road Fund the amount estimated to represent 64% of the net
revenue realized from the taxes imposed on motor fuel and
gasohol. Beginning on July 1, 2026, subject to the payment of
amounts into the County and Mass Transit District Fund, the
Local Government Tax Fund, the Build Illinois Fund, the
McCormick Place Expansion Project Fund, the Illinois Tax
Increment Fund, and the Tax Compliance and Administration Fund
as provided in this Section, the Department shall pay each
month into the Public Transportation Fund and the Downstate
Public Transportation Fund the amount estimated to represent
80% of the net revenue realized from the taxes imposed on motor
fuel and gasohol. Moneys shall be apportioned as follows: 85%
into the Public Transportation Fund and 15% into the Downstate

SB4200 - 322 - LRB104 21786 TRT 37479 b
Public Transportation Fund. As used in this paragraph "motor
fuel" has the meaning given to that term in Section 1.1 of the
Motor Fuel Tax Law, and "gasohol" has the meaning given to that
term in Section 3-40 of the Use Tax Act.
Until July 1, 2025, of the remainder of the moneys
received by the Department pursuant to this Act, 75% thereof
shall be paid into the State treasury and 25% shall be reserved
in a special account and used only for the transfer to the
Common School Fund as part of the monthly transfer from the
General Revenue Fund in accordance with Section 8a of the
State Finance Act. Beginning July 1, 2025, of the remainder of
the moneys received by the Department pursuant to this Act,
75% shall be deposited into the General Revenue Fund and 25%
shall be deposited into the Common School Fund.
The Department may, upon separate written notice to a
taxpayer, require the taxpayer to prepare and file with the
Department on a form prescribed by the Department within not
less than 60 days after receipt of the notice an annual
information return for the tax year specified in the notice.
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

SB4200 - 323 - LRB104 21786 TRT 37479 b
reasons for the difference. The retailer's annual return to
the Department shall also disclose the cost of goods sold by
the retailer during the year covered by such return, opening
and closing inventories of such goods for such year, costs of
goods used from stock or taken from stock and given away by the
retailer during such year, payroll information of the
retailer's business during such year and any additional
reasonable information which the Department deems would be
helpful in determining the accuracy of the monthly, quarterly,
or annual returns filed by such retailer as provided for in
this Section.
If the annual information return required by this Section
is not filed when and as required, the taxpayer shall be liable
as follows:
(i) Until January 1, 1994, the taxpayer shall be
liable for a penalty equal to 1/6 of 1% of the tax due from
such taxpayer under this Act during the period to be
covered by the annual return for each month or fraction of
a month until such return is filed as required, the
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

SB4200 - 324 - LRB104 21786 TRT 37479 b
accuracy of the information contained therein. Any person who
willfully signs the annual return containing false or
inaccurate information shall be guilty of perjury and punished
accordingly. The annual return form prescribed by the
Department shall include a warning that the person signing the
return may be liable for perjury.
The provisions of this Section concerning the filing of an
annual information return do not apply to a retailer who is not
required to file an income tax return with the United States
Government.
As soon as possible after the first day of each month, upon
certification of the Department of Revenue, the Comptroller
shall order transferred and the Treasurer shall transfer from
the General Revenue Fund to the Motor Fuel Tax Fund an amount
equal to 1.7% of 80% of the net revenue realized under this Act
for the second preceding month. Beginning April 1, 2000, this
transfer is no longer required and shall not be made.
Net revenue realized for a month shall be the revenue
collected by the State pursuant to this Act, less the amount
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

SB4200 - 325 - LRB104 21786 TRT 37479 b
such sales, if the retailers who are affected do not make
written objection to the Department to this arrangement.
Any person who promotes, organizes, or provides retail
selling space for concessionaires or other types of sellers at
the Illinois State Fair, DuQuoin State Fair, county fairs,
local fairs, art shows, flea markets, and similar exhibitions
or events, including any transient merchant as defined by
Section 2 of the Transient Merchant Act of 1987, is required to
file a report with the Department providing the name of the
merchant's business, the name of the person or persons engaged
in merchant's business, the permanent address and Illinois
Retailers Occupation Tax Registration Number of the merchant,
the dates and location of the event, and other reasonable
information that the Department may require. The report must
be filed not later than the 20th day of the month next
following the month during which the event with retail sales
was held. Any person who fails to file a report required by
this Section commits a business offense and is subject to a
fine not to exceed $250.
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

SB4200 - 326 - LRB104 21786 TRT 37479 b
payment of the full amount of tax due. The Department shall
impose this requirement when it finds that there is a
significant risk of loss of revenue to the State at such an
exhibition or event. Such a finding shall be based on evidence
that a substantial number of concessionaires or other sellers
who are not residents of Illinois will be engaging in the
business of selling tangible personal property at retail at
the exhibition or event, or other evidence of a significant
risk of loss of revenue to the State. The Department shall
notify concessionaires and other sellers affected by the
imposition of this requirement. In the absence of notification
by the Department, the concessionaires and other sellers shall
file their returns as otherwise required in this Section.
(Source: P.A. 103-9, eff. 6-7-23; 103-154, eff. 6-30-23;
103-363, eff. 7-28-23; 103-592, Article 75, Section 75-20,
eff. 1-1-25; 103-592, Article 110, Section 110-20, eff.
6-7-24; 103-605, eff. 7-1-24; 103-1055, eff. 12-20-24; 104-6,
Article 5, Section 5-25, eff. 6-16-25; 104-6, Article 25,
Section 25-20, eff. 6-16-25; 104-6, Article 35, Section 35-35,
eff. 6-16-25; 104-457, eff. 6-1-26.)
(35 ILCS 120/5o new)
Sec. 5o. Building materials exemption; Qualified
Residential Development.
(a) Beginning July 1, 2028, the tax imposed under this Act
on sales of building materials that will be incorporated into

SB4200 - 327 - LRB104 21786 TRT 37479 b
a qualified residential development, as designated by the
Department of Commerce and Economic Opportunity under Section
605-1121 of the Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois,
shall be imposed at the rate of 1.25%.
Upon request from the designated qualified residential
development, the Department shall issue a Qualified
Residential Development Building Materials Exemption
Certificate for each construction contractor or other entity
identified by the designated qualified residential
development. The Department shall make the Exemption
Certificates available to each construction contractor or
other entity and the designated qualified residential
development. The request for Building Materials Exemption
Certificates from the designated qualified residential
development to the Department must include the following
information:
(1) the name and address of the construction
contractor or other entity;
(2) the name and location or address of the
designated qualified residential development;
(3) the estimated amount of the exemption for each
construction contractor or other entity for which a
request for Exemption Certificate is made, based on a
stated estimated average tax rate and the percentage of
the contract that consists of materials;

SB4200 - 328 - LRB104 21786 TRT 37479 b
(4) the period of time over which supplies for the
project are expected to be purchased; and
(5) other reasonable information as the Department
may require, including, but not limited to, FEIN numbers,
to determine if the contractor or other entity, or any
partner, or a corporate officer, and in the case of a
limited liability company, any manager or member, of the
construction contractor or other entity, is or has been
the owner, a partner, a corporate officer, and in the case
of a limited liability company, a manager or member, of a
person that is in default for moneys due to the Department
under this Act or any other tax or fee Act administered by
the Department.
The Department shall issue the Qualified Residential
Development Building Materials Exemption Certificates within 3
business days after receipt of request from the designated
qualified residential developments. This requirement does not
apply in circumstances where the Department, for reasonable
cause, is unable to issue the Exemption Certificate within 3
business days. The Department may refuse to issue an Exemption
Certificate if the owner, any partner, or a corporate officer,
and in the case of a limited liability company, any manager or
member, of the construction contractor or other entity is or
has been the owner, a partner, a corporate officer, and in the
case of a limited liability company, a manager or member, of a
person that is in default for moneys due to the Department

SB4200 - 329 - LRB104 21786 TRT 37479 b
under this Act or any other tax or fee Act administered by the
Department. The Qualified Residential Development Building
Materials Exemption Certificate shall contain language stating
that if the construction contractor or other entity who is
issued the Exemption Certificate makes a tax-exempt purchase,
as described in this Section, that is not eligible for
exemption under this Section or allows another person to make
a tax-exempt purchase, as described in this Section, that is
not eligible for exemption under this Section, then, in
addition to any tax or other penalty imposed, the construction
contractor or other entity is subject to a penalty equal to the
tax that would have been paid by the retailer under this Act as
well as any applicable local retailers' occupation tax on the
purchase that is not eligible for the exemption.
The Department, in its discretion, may require that the
request for Qualified Residential Development Building
Materials Exemption Certificates be submitted electronically.
The Department may, in its discretion, issue the Exemption
Certificates electronically. The Qualified Residential
Development Building Materials Exemption Certificate number
shall be designed in such a way that the Department can
identify from the unique number on the Exemption Certificate
issued to a given construction contractor or other entity, the
name of the designated qualified residential development and
the construction contractor or other entity to whom the
Exemption Certificate is issued. The Exemption Certificate

SB4200 - 330 - LRB104 21786 TRT 37479 b
shall contain an expiration date, which shall be no more than 2
years after the date of issuance. At the request of the
designated qualified residential development, the Department
may renew an Exemption Certificate. After the Department
issues Exemption Certificates for a given designated qualified
residential development, the designated qualified residential
development may notify the Department of additional
construction contractors or other entities eligible for a
Building Materials Exemption Certificate. Upon notification by
the designated qualified residential development and subject
to the other provisions of this subsection (b), the Department
shall issue a Qualified Residential Development Building
Materials Exemption Certificate to each additional
construction contractor or other entity identified by the
designated qualified residential development. A designated
qualified residential development may notify the Department to
rescind a Building Materials Exemption Certificate previously
issued by the Department but that has not yet expired. Upon
notification by the designated qualified residential
development and subject to the other provisions of this
subsection (b), the Department shall issue the rescission of
the Building Materials Exemption Certificate to the
construction contractor or other entity identified by the
designated qualified residential development and provide a
copy to the designated qualified residential development.
If the Department of Revenue determines that a

SB4200 - 331 - LRB104 21786 TRT 37479 b
construction contractor or other entity that was issued an
Exemption Certificate under this subsection (b) made a
tax-exempt purchase, as described in this Section, that was
not eligible for exemption under this Section or allowed
another person to make a tax-exempt purchase, as described in
this Section, that was not eligible for exemption under this
Section, then, in addition to any tax or other penalty
imposed, the construction contractor or other entity is
subject to a penalty equal to the tax that would have been paid
by the retailer under this Act as well as any applicable local
retailers' occupation tax on the purchase that was not
eligible for the exemption.
(b) In addition to any other requirements to document the
exemption allowed under this Section, the retailer must obtain
from the purchaser the purchaser's qualified residential
development Building Materials Exemption Certificate number
issued by the Department. A construction contractor or other
entity shall not make tax-free purchases unless it has an
active Exemption Certificate issued by the Department at the
time of purchase.
Section 60. The Property Tax Code is amended by changing
Section 31-35 as follows:
(35 ILCS 200/31-35)
Sec. 31-35. Deposit of tax revenue.

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(a) Beginning on June 6, 2002 (the effective date of
Public Act 92-536) and through June 30, 2003, of the moneys
collected under Section 31-15, 50% shall be deposited into the
Illinois Affordable Housing Trust Fund, 20% into the Open
Space Lands Acquisition and Development Fund, 5% into the
Natural Areas Acquisition Fund, and 25% into the General
Revenue Fund.
(b) Beginning July 1, 2003, and through June 30, 2025, of
the moneys collected under Section 31-15, 50% shall be
deposited into the Illinois Affordable Housing Trust Fund, 35%
into the Open Space Lands Acquisition and Development Fund,
and 15% into the Natural Areas Acquisition Fund.
(c) Beginning July 1, 2025 and until July 1, 2028, of the
moneys collected under Section 31-15, the first $300,000 shall
be deposited into the Governor's Administrative Fund each
fiscal year. After all required deposits into the Governor's
Administrative Fund have been made, the remainder shall be
deposited as follows:
(1) 50% into the Illinois Affordable Housing Trust
Fund;
(2) 35% into the Open Space Lands Acquisition and
Development Fund; and
(3) 15% into the Natural Areas Acquisition Fund.
(d) Beginning July 1, 2028, of the moneys collected under
Section 31-15, the first $300,000 shall be deposited into the
Governor's Administrative Fund each fiscal year. After all

SB4200 - 333 - LRB104 21786 TRT 37479 b
required deposits into the Governor's Administrative Fund have
been made, the next $30,000,000 shall be deposited into the
Veterans Property Tax Relief Reimbursement Pilot Program Fund.
After all required deposits into the Governor's Administrative
Fund and the Veterans Property Tax Relief Reimbursement Pilot
Program Fund have been made, the remainder shall be deposited
as follows:
(1) 50% into the Illinois Affordable Housing Trust
Fund;
(2) 35% into the Open Space Lands Acquisition and
Development Fund; and
(3) 15% into the Natural Areas Acquisition Fund.
(Source: P.A. 104-2, eff. 6-16-25.)
(50 ILCS 825/Act rep.)
Section 65. The Rent Control Preemption Act is repealed.
Section 70. The Counties Code is amended by adding
Sections 5-2008 and 5-12025 as follows:
(55 ILCS 5/5-2008 new)
Sec. 5-2008. Local Government Distributive Fund excess
revenues.
(a) As used in this Section:
"Fund" means the Local Government Distributive Fund.
"Property tax relief" means: (i) a reduction in the

SB4200 - 334 - LRB104 21786 TRT 37479 b
property tax levy; (ii) property tax abatement; or (iii) the
avoidance of a levy increase that would otherwise be necessary
to fund general operations.
(b) A county may opt in, by resolution, to participate in
the receipt of Local Government Distributive Fund revenues
that exceed an amount of 8% of State income tax collections
distributed to the Local Government Distributive Fund.
(c) A county that elects to participate shall use the
revenues received under subsection (b) to provide property tax
relief in an amount equal to the increase received from the
Fund. The amount of required property tax relief shall be
calculated as the total dollar increase in Local Government
Distributive Fund revenues received above the 8% threshold in
that fiscal year.
(d) A county's resolution shall be adopted annually,
following the enactment of the State budget and prior to the
adoption of the county's property tax levy. Property tax
relief provided under this Section shall be implemented in the
next applicable levy cycle following the receipt of such
funds.
(e) A county shall demonstrate compliance with this
Section through its annual budget, levy ordinance, abatement
documentation, or other official financial records.
(f) This Section applies only to Fund revenues distributed
to counties in excess of the 8% threshold. This Section does
not apply to base Fund revenues at or below 8%. Nothing in this

SB4200 - 335 - LRB104 21786 TRT 37479 b
Section shall be construed to:
(1) require a county to reduce its total property tax
levy below the amount levied in the prior year;
(2) limit the authority of a county to make budgetary
or levy decisions consistent with applicable law;
(3) restrict the use of Fund revenues received in
prior fiscal years; or
(4) require a county to participate in this program.
(55 ILCS 5/5-12025 new)
Sec. 5-12025. Local housing innovation and flexibility.
(a) As used in this Section:
"Accessory dwelling unit" means a residential living unit
that is located on a lot containing a single-family dwelling,
that provides independent living facilities for one or more
persons, including provisions for sleeping, eating, cooking,
and sanitation, on the same parcel of land as the principal
dwelling unit it accompanies, and that is either separated
from or attached to the primary dwelling unit.
"Area median income" means the median family income for
the area, as determined by the United States Department of
Housing and Urban Development, with adjustments for family
size.
"Blighted property" means any residential or commercial
structure that a county has determined is vacant, abandoned,
unsafe, structurally unsound, or unfit for occupancy.

SB4200 - 336 - LRB104 21786 TRT 37479 b
"By-right overlay district for middle housing" means a
zoning district superimposed on one or more other zoning
districts within the county's zoning jurisdiction in which
middle housing development projects that meet preset criteria
established by the county may proceed without further
discretionary review or public hearings.
"Middle housing" means small-scale, multiunit residential
housing types that are compatible with single-family
neighborhoods and accessible to households earning between 80%
and 140% of the area median income. "Middle housing" includes
duplexes, triplexes, fourplexes, and accessory dwelling units.
"Program" means the Middle Housing Incentive Program
created under Section 605-1120 of the Department of Commerce
and Economic Opportunity Law of the Civil Administrative Code
of Illinois.
(b) A county may establish a by-right overlay district for
middle housing, adopt parking flexibility measures for
residential developments, authorize adaptive reuse of
underused structures for residential use, and adopt
single-stairwell residential building provisions in accordance
with this Section.
(c) A county may establish by-right overlay districts for
middle housing. Within such districts, a county may:
(1) streamline processes for obtaining permits and
other approvals needed for the development and
construction of new middle housing;

SB4200 - 337 - LRB104 21786 TRT 37479 b
(2) establish clear, objective standards for the
development and construction of new middle housing; and
(3) maintain local control over infrastructure
capacity determinations, including control over design and
safety requirements for middle housing.
(d) A county may reduce or eliminate minimum off-street
parking requirements for residential developments, waive or
modify electric vehicle infrastructure requirements where
parking reductions are permitted under this Act, and allow
alternative compliance measures, including shared parking,
off-site parking or transportation demand strategies. Any
reduction in minimum off-street parking requirements for
residential developments must maintain emergency vehicle
access standards and preserve and recognize the importance of
maintaining consistency with accessible parking requirements
under the federal Americans with Disabilities Act. A county
that adopts parking flexibility measures for qualifying
residential developments may receive priority consideration
for State housing, infrastructure, or economic development
funding. Nothing in this Section shall be construed to require
a unit of local government to reduce or eliminate parking
requirements.
(e) A county may allow the conversion of existing
commercial or underused structures into middle housing in
accordance with locally adopted standards and procedures.
(f) A county may:

SB4200 - 338 - LRB104 21786 TRT 37479 b
(1) identify, designate, and prioritize blighted
properties for demolition, rehabilitation, or
redevelopment in accordance with locally adopted standards
and procedures;
(2) use any existing statutory authorization,
including, but not limited to, expedited acquisition
procedures permitted under existing law, to acquire
blighted properties for the purpose of eliminating unsafe
conditions and facilitating redevelopment;
(3) transfer cleared or remediated properties at no
cost or reduced cost to qualified developers;
(4) prioritize projects that include single-family
homes, duplexes, triplexes, fourplexes, or other middle
housing; and
(5) require, as a condition of transfer or assistance,
that such properties be marketed for owner-occupancy or
long-term rental housing; and
(6) establish local criteria to:
(A) prioritize owner-occupied housing
opportunities;
(B) encourage development affordable to households
at or below specified income thresholds; and
(C) support neighborhood stabilization and
reinvestment.
Nothing in this subsection shall be construed to expand a
county's eminent domain power beyond that permitted under

SB4200 - 339 - LRB104 21786 TRT 37479 b
existing law. In taking actions under this subsection, a
county shall give priority to redevelopment that results in
owner-occupied housing.
(g) A county that operates or controls a utility may:
(1) provide flexibility for middle housing
developments, including:
(A) deferral of utility connection fees until a
certificate of occupancy is issued;
(B) phased payment structures; and
(C) fee reductions or waivers where appropriate to
support housing affordability; and
(2) allow alternative or cost-effective stormwater
compliance options for qualifying residential
developments, consistent with public safety and
environmental standards.
Nothing in this subsection shall be construed to create or
encourage any new tax, fee, or charge or to limit a county's
existing power to impose water, sewer, or storm water-related
charges in accordance with applicable law.
(h) A county may allow impact fees associated with
residential development to be paid on or before the issuance
of a certificate of occupancy, rather than at the time of
permit issuance. Impact fees shall be reasonably related to
the estimated actual and proportionate cost of infrastructure
necessitated by the development. A county shall not impose
impact fees for infrastructure improvements that are otherwise

SB4200 - 340 - LRB104 21786 TRT 37479 b
required to be constructed or funded directly by the
developer. A county imposing impact fees shall maintain a fee
study consistent with applicable law demonstrating the basis
for the calculation of the fees. The studies shall be publicly
available and periodically updated to reflect current
infrastructure costs and development conditions. Any county
that adopts impact fee deferrals, reductions, or other
flexibility measures for qualifying residential developments
may receive priority consideration for State housing,
infrastructure, or economic development funding. Nothing in
this Section shall be construed to limit local authority to
impose impact fees, establish a statewide fee schedule or
formula, require a county to impose impact fees, restrict the
use of development agreements between a county and developers,
or expand the authority of a county to impose impact fees
beyond existing law.
(i) A county may consider whether existing or planned
infrastructure, public services, and community resources are
sufficient to support a proposed residential development. In
evaluating a proposed development, a county may consider the
availability and capacity of sanitary sewer systems; water
supply and distribution systems; stormwater management
infrastructure; and transportation and roadway capacity. A
county may consider the impact of development on police
services; fire protection; emergency response times and
access; local school capacity; parks and recreational

SB4200 - 341 - LRB104 21786 TRT 37479 b
facilities; and other community services. A county may
consider consistency with its adopted comprehensive plan or
other planning documents in evaluating proposed development. A
county may consider the cumulative impact of multiple
developments within a service area when evaluating
infrastructure and service capacity. A county may require
verification that adequate sanitary sewer capacity is
available to serve the proposed development, consistent with
applicable State and federal regulations, including those
administered by the Illinois Environmental Protection Agency.
For developments relying on private water or wastewater
systems, a county may require demonstration that such systems
can support the proposed use without creating risk to public
health or environmental quality. Nothing in this subsection
shall be construed to limit local authority to protect public
health, safety, and welfare.
(j) Notwithstanding any other law, a county may regulate
or prohibit the installation of a solar energy system or an
energy storage system within its jurisdiction if the
regulation or prohibition is supported by a documented
planning process and if it can demonstrate a record of a
documented planning process of not less than 60 days,
including public notice, opportunity for comment and
consideration of the property where the solar energy system or
energy storage system is proposed to be sited. If a planning
record exists, a county may regulate or prohibit the solar

SB4200 - 342 - LRB104 21786 TRT 37479 b
energy system or energy system in a manner consistent with its
comprehensive plan, its zoning authority, and applicable land
use regulations.
(k) A county may, by ordinance or referendum, adopt
locally tailored rent stabilization measures. Such measures
may include exemptions for landlords or property owners
controlling 4 or fewer units within the county.
(l) A county may adopt building code provisions allowing
single-stairwell residential building designs, provided such
buildings meet applicable height and unit count limitations
and incorporate enhanced fire safety measures, including but
not limited to: fire-resistant construction; automatic
sprinkler systems; fire alarm and detection systems; and smoke
control or ventilation measures as required. The Office of the
State Fire Marshal may develop model standards or guidance for
any county choosing to adopt such provisions. Nothing in this
Section shall be construed to require a county to adopt
single-stairwell provisions or preempt local building or fire
code authority.
(m) A county may exercise the powers described in this
Section by ordinance and may maintain local control of design,
public safety, infrastructure capacity, and development
standards.
(n) Nothing in this Section requires a county to adopt any
zoning, parking, or building code changes.

SB4200 - 343 - LRB104 21786 TRT 37479 b
Section 75. The Illinois Municipal Code is amended by
adding Sections 8-11-25 and 11-13-30 and by changing Sections
11-15.5-10 and 11-74.4-3 as follows:
(65 ILCS 5/8-11-25 new)
Sec. 8-11-25. Local Government Distributive Fund excess
revenues.
(a) As used in this Section:
"Fund" means the Local Government Distributive Fund.
"Property tax relief" means: (i) a reduction in the
property tax levy; (ii) property tax abatement; or (iii) the
avoidance of a levy increase that would otherwise be necessary
to fund general operations.
(b) A municipality may opt in, by resolution, to
participate in the receipt of Local Government Distributive
Fund revenues that exceed an amount of 8% of State income tax
collections distributed to the Local Government Distributive
Fund.
(c) A municipality that elects to participate shall use
the revenues received under subsection (b) to provide property
tax relief in an amount equal to the increase received from the
Fund. The amount of required property tax relief shall be
calculated as the total dollar increase in Local Government
Distributive Fund revenues received above the 8% threshold in
that fiscal year.
(d) A municipality's resolution shall be adopted annually,

SB4200 - 344 - LRB104 21786 TRT 37479 b
following the enactment of the State budget and prior to the
adoption of the municipality's property tax levy. Property tax
relief provided under this Section shall be implemented in the
next applicable levy cycle following the receipt of such
funds.
(e) A municipality shall demonstrate compliance with this
Section through its annual budget, levy ordinance, abatement
documentation, or other official financial records.
(f) This Section applies only to Fund revenues distributed
to municipalities in excess of the 8% threshold. This Section
does not apply to base Fund revenues at or below 8%. Nothing in
this Section shall be construed to:
(1) require a municipality to reduce its total
property tax levy below the amount levied in the prior
year;
(2) limit the authority of a municipality to make
budgetary or levy decisions consistent with applicable
law;
(3) restrict the use of Fund revenues received in
prior fiscal years; or
(4) require a municipality to participate in this
program.
(65 ILCS 5/11-13-30 new)
Sec. 11-13-30. Local housing innovation and flexibility.
(a) As used in this Section:

SB4200 - 345 - LRB104 21786 TRT 37479 b
"Accessory dwelling unit" means a residential living unit
that is located on a lot containing a single-family dwelling,
that provides independent living facilities for one or more
persons, including provisions for sleeping, eating, cooking,
and sanitation, on the same parcel of land as the principal
dwelling unit it accompanies, and that is either separated
from or attached to the primary dwelling unit.
"Area median income" means the median family income for
the area, as determined by the United States Department of
Housing and Urban Development, with adjustments for family
size.
"Blighted property" means any residential or commercial
structure that a municipality has determined is vacant,
abandoned, unsafe, structurally unsound, or unfit for
occupancy.
"By-right overlay district for middle housing" means a
zoning district superimposed on one or more other zoning
districts within the municipality's zoning jurisdiction in
which middle housing development projects that meet preset
criteria established by the municipality may proceed without
further discretionary review or public hearings.
"Middle housing" means small-scale, multiunit residential
housing types that are compatible with single-family
neighborhoods and accessible to households earning between 80%
and 140% of the area median income. "Middle housing" includes
duplexes, triplexes, fourplexes, and accessory dwelling units.

SB4200 - 346 - LRB104 21786 TRT 37479 b
"State agency" has the meaning given in Section 405-5 of
the Department of Central Management Services Law of the Civil
Administrative Code of Illinois.
(b) A municipality may establish a by-right overlay
district for middle housing, adopt parking flexibility
measures for residential development, authorize adaptive reuse
of underutilized structures for residential use, and adopt
single-stairwell residential building provisions consistent
with this Section.
(c) A municipality may establish by-right overlay
districts for middle housing. Within such districts,
municipalities may:
(1) streamline processes for obtaining permits and
other approvals needed for the development and
construction of new middle housing;
(2) establish clear, objective standards for the
development and construction of new middle housing; and
(3) maintain its local control over infrastructure
capacity determinations, including control over design and
safety requirements for middle housing.
(d) A municipality may reduce or eliminate minimum
off-street parking requirements for residential developments,
waive or modify electric vehicle infrastructure requirements
where parking reductions are permitted under this Act, and
allow alternative compliance measures, including shared
parking, off-site parking or transportation demand strategies.

SB4200 - 347 - LRB104 21786 TRT 37479 b
Any reduction in minimum off-street parking requirements for
residential developments must maintain emergency vehicle
access standards and preserve and recognize the importance of
maintaining consistency with accessible parking requirements
under the federal Americans with Disabilities Act. A
municipality that adopts parking flexibility measures for
qualifying residential developments may receive priority
consideration for State housing, infrastructure, or economic
development funding. Nothing in this Section shall be
construed to require a unit of local government to reduce or
eliminate parking requirements.
(e) A municipality may allow the conversion of existing
commercial or underused structures into middle housing in
accordance with locally adopted standards and procedures.
(f) A municipality may:
(1) identify, designate, and prioritize blighted
properties for demolition, rehabilitation, or
redevelopment in accordance with locally adopted standards
and procedures;
(2) use any existing statutory authorization,
including, but not limited to, expedited acquisition
procedures permitted under existing law, to acquire
blighted properties for the purpose of eliminating unsafe
conditions and facilitating redevelopment;
(3) transfer cleared or remediated properties at no
cost or reduced cost to qualified developers;

SB4200 - 348 - LRB104 21786 TRT 37479 b
(4) prioritize projects that include single-family
homes, duplexes, triplexes, fourplexes, or other middle
housing; and
(5) require, as a condition of transfer or assistance,
that such properties be marketed for owner-occupancy or
long-term rental housing; and
(6) establish local criteria to:
(A) prioritize owner-occupied housing
opportunities;
(B) encourage development affordable to households
at or below specified income thresholds; and
(C) support neighborhood stabilization and
reinvestment.
Nothing in this subsection shall be construed to expand a
municipality's eminent domain power beyond that permitted
under existing law. In taking actions under this subsection, a
municipality shall give priority to redevelopment that results
in owner-occupied housing.
(g) A municipality that operates or controls a utility
may:
(1) provide flexibility for middle housing
developments, including:
(A) deferral of utility connection fees until a
certificate of occupancy is issued;
(B) phased payment structures; and
(C) fee reductions or waivers where appropriate to

SB4200 - 349 - LRB104 21786 TRT 37479 b
support housing affordability; and
(2) allow alternative or cost-effective stormwater
compliance options for qualifying residential
developments, consistent with public safety and
environmental standards.
Nothing in this subsection shall be construed to create or
encourage any new tax, fee, or charge or to limit a
municipality's existing power to impose water, sewer, or storm
water-related charges in accordance with applicable law.
(h) A municipality may allow impact fees associated with
residential development to be paid on or before the issuance
of a certificate of occupancy, rather than at the time of
permit issuance. Impact fees shall be reasonably related to
the estimated actual and proportionate cost of infrastructure
necessitated by the development. A municipality shall not
impose impact fees for infrastructure improvements that are
otherwise required to be constructed or funded directly by the
developer. A municipality imposing impact fees shall maintain
a fee study consistent with applicable law demonstrating the
basis for the calculation of the fees. The studies shall be
publicly available and periodically updated to reflect current
infrastructure costs and development conditions. Any
municipality that adopts impact fee deferrals, reductions, or
other flexibility measures for qualifying residential
developments may receive priority consideration for State
housing, infrastructure, or economic development funding.

SB4200 - 350 - LRB104 21786 TRT 37479 b
Nothing in this Section shall be construed to limit local
authority to impose impact fees, establish a statewide fee
schedule or formula, require a municipality to impose impact
fees, restrict the use of development agreements between a
municipality and developers, or expand the authority of a
municipality to impose impact fees beyond existing law.
(i) A municipality may consider whether existing or
planned infrastructure, public services, and community
resources are sufficient to support a proposed residential
development. In evaluating a proposed development, a
municipality may consider the availability and capacity of
sanitary sewer systems; water supply and distribution systems;
stormwater management infrastructure; and transportation and
roadway capacity. A municipality may consider the impact of
development on police services; fire protection; emergency
response times and access; local school capacity; parks and
recreational facilities; and other community services. A
municipality may consider consistency with its adopted
comprehensive plan or other planning documents in evaluating
proposed development. A municipality may consider the
cumulative impact of multiple developments within a service
area when evaluating infrastructure and service capacity. A
municipality may require verification that adequate sanitary
sewer capacity is available to serve the proposed development,
consistent with applicable State and federal regulations,
including those administered by the Illinois Environmental

SB4200 - 351 - LRB104 21786 TRT 37479 b
Protection Agency. For developments relying on private water
or wastewater systems, a municipality may require
demonstration that such systems can support the proposed use
without creating risk to public health or environmental
quality. Nothing in this subsection shall be construed to
limit local authority to protect public health, safety, and
welfare.
(j) Notwithstanding any other law, a municipality may
regulate or prohibit the installation of a solar energy system
or an energy storage system within its jurisdiction if the
regulation or prohibition is supported by a documented
planning process and if it can demonstrate a record of a
documented planning process of not less than 60 days,
including public notice, opportunity for comment and
consideration of the property where the solar energy system or
energy storage system is proposed to be sited. If a planning
record exists, a municipality may regulate or prohibit the
solar energy system or energy system in a manner consistent
with its comprehensive plan, its zoning authority, and
applicable land use regulations. This authorization shall
include the ability to regulate or prohibit such systems
within any local extraterritorial zoning jurisdiction,
including areas within one and one-half miles of its corporate
limits, as authorized by law.
(k) A municipality may, by ordinance or referendum, adopt
locally tailored rent stabilization measures. Such measures

SB4200 - 352 - LRB104 21786 TRT 37479 b
may include exemptions for landlords or property owners
controlling 4 or fewer units within the municipality.
(l) A municipality may adopt building code provisions
allowing single-stairwell residential building designs,
provided such buildings meet applicable height and unit count
limitations and incorporate enhanced fire safety measures,
including but not limited to: fire-resistant construction;
automatic sprinkler systems; fire alarm and detection systems;
and smoke control or ventilation measures as required. The
Office of the State Fire Marshal may develop model standards
or guidance for any municipality choosing to adopt such
provisions. Nothing in this Section shall be construed to
require a municipality to adopt single-stairwell provisions or
preempt local building or fire code authority.
(m) A municipality may exercise the powers described in
this Section by ordinance and may maintain local control of
design, public safety, infrastructure capacity, and
development standards.
(n) Nothing in this Section requires a municipality to
adopt any zoning, parking, or building code changes.
(65 ILCS 5/11-15.5-10)
(This Section may contain text from a Public Act with a
delayed effective date)
Sec. 11-15.5-10. Prohibitions. A municipality may regulate
or prohibit the installation of a solar energy system or

SB4200 - 353 - LRB104 21786 TRT 37479 b
low-voltage solar-powered devices in a way that is consistent
with the municipality's comprehensive plan or zoning
authority, including within the municipality's one and
one-half mile extraterritorial zoning jurisdiction.
Notwithstanding any provision of this Code or other provision
of law, the adoption of any ordinance or resolution or the
exercise of any power, by municipality that prohibits or has
the effect of prohibiting the installation of a solar energy
system or low-voltage solar-powered devices is expressly
prohibited. Municipalities that own local electric
distribution systems may adopt and implement reasonable
policies, consistent with Section 17-900 of the Public
Utilities Act, regarding the interconnection and use of solar
energy systems.
(Source: P.A. 104-458, eff. 6-1-26.)
(65 ILCS 5/11-74.4-3) (from Ch. 24, par. 11-74.4-3)
(Text of Section before amendment by P.A. 104-457)
Sec. 11-74.4-3. Definitions. The following terms, wherever
used or referred to in this Division 74.4 shall have the
following respective meanings, unless in any case a different
meaning clearly appears from the context.
(a) For any redevelopment project area that has been
designated pursuant to this Section by an ordinance adopted
prior to November 1, 1999 (the effective date of Public Act
91-478), "blighted area" shall have the meaning set forth in

SB4200 - 354 - LRB104 21786 TRT 37479 b
this Section prior to that date.
On and after November 1, 1999, "blighted area" means any
improved or vacant area within the boundaries of a
redevelopment project area located within the territorial
limits of the municipality where:
(1) If improved, industrial, commercial, and
residential buildings or improvements are detrimental to
the public safety, health, or welfare because of a
combination of 5 or more of the following factors, each of
which is (i) present, with that presence documented, to a
meaningful extent so that a municipality may reasonably
find that the factor is clearly present within the intent
of the Act and (ii) reasonably distributed throughout the
improved part of the redevelopment project area:
(A) Dilapidation. An advanced state of disrepair
or neglect of necessary repairs to the primary
structural components of buildings or improvements in
such a combination that a documented building
condition analysis determines that major repair is
required or the defects are so serious and so
extensive that the buildings must be removed.
(B) Obsolescence. The condition or process of
falling into disuse. Structures have become ill-suited
for the original use.
(C) Deterioration. With respect to buildings,
defects including, but not limited to, major defects

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in the secondary building components such as doors,
windows, porches, gutters and downspouts, and fascia.
With respect to surface improvements, that the
condition of roadways, alleys, curbs, gutters,
sidewalks, off-street parking, and surface storage
areas evidence deterioration, including, but not
limited to, surface cracking, crumbling, potholes,
depressions, loose paving material, and weeds
protruding through paved surfaces.
(D) Presence of structures below minimum code
standards. All structures that do not meet the
standards of zoning, subdivision, building, fire, and
other governmental codes applicable to property, but
not including housing and property maintenance codes.
(E) Illegal use of individual structures. The use
of structures in violation of applicable federal,
State, or local laws, exclusive of those applicable to
the presence of structures below minimum code
standards.
(F) Excessive vacancies. The presence of buildings
that are unoccupied or under-utilized and that
represent an adverse influence on the area because of
the frequency, extent, or duration of the vacancies.
(G) Lack of ventilation, light, or sanitary
facilities. The absence of adequate ventilation for
light or air circulation in spaces or rooms without

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windows, or that require the removal of dust, odor,
gas, smoke, or other noxious airborne materials.
Inadequate natural light and ventilation means the
absence of skylights or windows for interior spaces or
rooms and improper window sizes and amounts by room
area to window area ratios. Inadequate sanitary
facilities refers to the absence or inadequacy of
garbage storage and enclosure, bathroom facilities,
hot water and kitchens, and structural inadequacies
preventing ingress and egress to and from all rooms
and units within a building.
(H) Inadequate utilities. Underground and overhead
utilities such as storm sewers and storm drainage,
sanitary sewers, water lines, and gas, telephone, and
electrical services that are shown to be inadequate.
Inadequate utilities are those that are: (i) of
insufficient capacity to serve the uses in the
redevelopment project area, (ii) deteriorated,
antiquated, obsolete, or in disrepair, or (iii)
lacking within the redevelopment project area.
(I) Excessive land coverage and overcrowding of
structures and community facilities. The
over-intensive use of property and the crowding of
buildings and accessory facilities onto a site.
Examples of problem conditions warranting the
designation of an area as one exhibiting excessive

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land coverage are: (i) the presence of buildings
either improperly situated on parcels or located on
parcels of inadequate size and shape in relation to
present-day standards of development for health and
safety and (ii) the presence of multiple buildings on
a single parcel. For there to be a finding of excessive
land coverage, these parcels must exhibit one or more
of the following conditions: insufficient provision
for light and air within or around buildings,
increased threat of spread of fire due to the close
proximity of buildings, lack of adequate or proper
access to a public right-of-way, lack of reasonably
required off-street parking, or inadequate provision
for loading and service.
(J) Deleterious land use or layout. The existence
of incompatible land-use relationships, buildings
occupied by inappropriate mixed-uses, or uses
considered to be noxious, offensive, or unsuitable for
the surrounding area.
(K) Environmental clean-up. The proposed
redevelopment project area has incurred Illinois
Environmental Protection Agency or United States
Environmental Protection Agency remediation costs for,
or a study conducted by an independent consultant
recognized as having expertise in environmental
remediation has determined a need for, the clean-up of

SB4200 - 358 - LRB104 21786 TRT 37479 b
hazardous waste, hazardous substances, or underground
storage tanks required by State or federal law,
provided that the remediation costs constitute a
material impediment to the development or
redevelopment of the redevelopment project area.
(L) Lack of community planning. The proposed
redevelopment project area was developed prior to or
without the benefit or guidance of a community plan.
This means that the development occurred prior to the
adoption by the municipality of a comprehensive or
other community plan or that the plan was not followed
at the time of the area's development. This factor
must be documented by evidence of adverse or
incompatible land-use relationships, inadequate street
layout, improper subdivision, parcels of inadequate
shape and size to meet contemporary development
standards, or other evidence demonstrating an absence
of effective community planning.
(M) The total equalized assessed value of the
proposed redevelopment project area has declined for 3
of the last 5 calendar years prior to the year in which
the redevelopment project area is designated or is
increasing at an annual rate that is less than the
balance of the municipality for 3 of the last 5
calendar years for which information is available or
is increasing at an annual rate that is less than the

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Consumer Price Index for All Urban Consumers published
by the United States Department of Labor or successor
agency for 3 of the last 5 calendar years prior to the
year in which the redevelopment project area is
designated.
(2) If vacant, the sound growth of the redevelopment
project area is impaired by a combination of 2 or more of
the following factors, each of which is (i) present, with
that presence documented, to a meaningful extent so that a
municipality may reasonably find that the factor is
clearly present within the intent of the Act and (ii)
reasonably distributed throughout the vacant part of the
redevelopment project area to which it pertains:
(A) Obsolete platting of vacant land that results
in parcels of limited or narrow size or configurations
of parcels of irregular size or shape that would be
difficult to develop on a planned basis and in a manner
compatible with contemporary standards and
requirements, or platting that failed to create
rights-of-ways for streets or alleys or that created
inadequate right-of-way widths for streets, alleys, or
other public rights-of-way or that omitted easements
for public utilities.
(B) Diversity of ownership of parcels of vacant
land sufficient in number to retard or impede the
ability to assemble the land for development.

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(C) Tax and special assessment delinquencies exist
or the property has been the subject of tax sales under
the Property Tax Code within the last 5 years.
(D) Deterioration of structures or site
improvements in neighboring areas adjacent to the
vacant land.
(E) The area has incurred Illinois Environmental
Protection Agency or United States Environmental
Protection Agency remediation costs for, or a study
conducted by an independent consultant recognized as
having expertise in environmental remediation has
determined a need for, the clean-up of hazardous
waste, hazardous substances, or underground storage
tanks required by State or federal law, provided that
the remediation costs constitute a material impediment
to the development or redevelopment of the
redevelopment project area.
(F) The total equalized assessed value of the
proposed redevelopment project area has declined for 3
of the last 5 calendar years prior to the year in which
the redevelopment project area is designated or is
increasing at an annual rate that is less than the
balance of the municipality for 3 of the last 5
calendar years for which information is available or
is increasing at an annual rate that is less than the
Consumer Price Index for All Urban Consumers published

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by the United States Department of Labor or successor
agency for 3 of the last 5 calendar years prior to the
year in which the redevelopment project area is
designated.
(3) If vacant, the sound growth of the redevelopment
project area is impaired by one of the following factors
that (i) is present, with that presence documented, to a
meaningful extent so that a municipality may reasonably
find that the factor is clearly present within the intent
of the Act and (ii) is reasonably distributed throughout
the vacant part of the redevelopment project area to which
it pertains:
(A) The area consists of one or more unused
quarries, mines, or strip mine ponds.
(B) The area consists of unused rail yards, rail
tracks, or railroad rights-of-way.
(C) The area, prior to its designation, is subject
to (i) chronic flooding that adversely impacts on real
property in the area as certified by a registered
professional engineer or appropriate regulatory agency
or (ii) surface water that discharges from all or a
part of the area and contributes to flooding within
the same watershed, but only if the redevelopment
project provides for facilities or improvements to
contribute to the alleviation of all or part of the
flooding.

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(D) The area consists of an unused or illegal
disposal site containing earth, stone, building
debris, or similar materials that were removed from
construction, demolition, excavation, or dredge sites.
(E) Prior to November 1, 1999, the area is not less
than 50 nor more than 100 acres and 75% of which is
vacant (notwithstanding that the area has been used
for commercial agricultural purposes within 5 years
prior to the designation of the redevelopment project
area), and the area meets at least one of the factors
itemized in paragraph (1) of this subsection, the area
has been designated as a town or village center by
ordinance or comprehensive plan adopted prior to
January 1, 1982, and the area has not been developed
for that designated purpose.
(F) The area qualified as a blighted improved area
immediately prior to becoming vacant, unless there has
been substantial private investment in the immediately
surrounding area.
(b) For any redevelopment project area that has been
designated pursuant to this Section by an ordinance adopted
prior to November 1, 1999 (the effective date of Public Act
91-478), "conservation area" shall have the meaning set forth
in this Section prior to that date.
On and after November 1, 1999, "conservation area" means
any improved area within the boundaries of a redevelopment

SB4200 - 363 - LRB104 21786 TRT 37479 b
project area located within the territorial limits of the
municipality in which 50% or more of the structures in the area
have an age of 35 years or more. Such an area is not yet a
blighted area but because of a combination of 3 or more of the
following factors is detrimental to the public safety, health,
morals or welfare and such an area may become a blighted area:
(1) Dilapidation. An advanced state of disrepair or
neglect of necessary repairs to the primary structural
components of buildings or improvements in such a
combination that a documented building condition analysis
determines that major repair is required or the defects
are so serious and so extensive that the buildings must be
removed.
(2) Obsolescence. The condition or process of falling
into disuse. Structures have become ill-suited for the
original use.
(3) Deterioration. With respect to buildings, defects
including, but not limited to, major defects in the
secondary building components such as doors, windows,
porches, gutters and downspouts, and fascia. With respect
to surface improvements, that the condition of roadways,
alleys, curbs, gutters, sidewalks, off-street parking, and
surface storage areas evidence deterioration, including,
but not limited to, surface cracking, crumbling, potholes,
depressions, loose paving material, and weeds protruding
through paved surfaces.

SB4200 - 364 - LRB104 21786 TRT 37479 b
(4) Presence of structures below minimum code
standards. All structures that do not meet the standards
of zoning, subdivision, building, fire, and other
governmental codes applicable to property, but not
including housing and property maintenance codes.
(5) Illegal use of individual structures. The use of
structures in violation of applicable federal, State, or
local laws, exclusive of those applicable to the presence
of structures below minimum code standards.
(6) Excessive vacancies. The presence of buildings
that are unoccupied or under-utilized and that represent
an adverse influence on the area because of the frequency,
extent, or duration of the vacancies.
(7) Lack of ventilation, light, or sanitary
facilities. The absence of adequate ventilation for light
or air circulation in spaces or rooms without windows, or
that require the removal of dust, odor, gas, smoke, or
other noxious airborne materials. Inadequate natural light
and ventilation means the absence or inadequacy of
skylights or windows for interior spaces or rooms and
improper window sizes and amounts by room area to window
area ratios. Inadequate sanitary facilities refers to the
absence or inadequacy of garbage storage and enclosure,
bathroom facilities, hot water and kitchens, and
structural inadequacies preventing ingress and egress to
and from all rooms and units within a building.

SB4200 - 365 - LRB104 21786 TRT 37479 b
(8) Inadequate utilities. Underground and overhead
utilities such as storm sewers and storm drainage,
sanitary sewers, water lines, and gas, telephone, and
electrical services that are shown to be inadequate.
Inadequate utilities are those that are: (i) of
insufficient capacity to serve the uses in the
redevelopment project area, (ii) deteriorated, antiquated,
obsolete, or in disrepair, or (iii) lacking within the
redevelopment project area.
(9) Excessive land coverage and overcrowding of
structures and community facilities. The over-intensive
use of property and the crowding of buildings and
accessory facilities onto a site. Examples of problem
conditions warranting the designation of an area as one
exhibiting excessive land coverage are: the presence of
buildings either improperly situated on parcels or located
on parcels of inadequate size and shape in relation to
present-day standards of development for health and safety
and the presence of multiple buildings on a single parcel.
For there to be a finding of excessive land coverage,
these parcels must exhibit one or more of the following
conditions: insufficient provision for light and air
within or around buildings, increased threat of spread of
fire due to the close proximity of buildings, lack of
adequate or proper access to a public right-of-way, lack
of reasonably required off-street parking, or inadequate

SB4200 - 366 - LRB104 21786 TRT 37479 b
provision for loading and service.
(10) Deleterious land use or layout. The existence of
incompatible land-use relationships, buildings occupied by
inappropriate mixed-uses, or uses considered to be
noxious, offensive, or unsuitable for the surrounding
area.
(11) Lack of community planning. The proposed
redevelopment project area was developed prior to or
without the benefit or guidance of a community plan. This
means that the development occurred prior to the adoption
by the municipality of a comprehensive or other community
plan or that the plan was not followed at the time of the
area's development. This factor must be documented by
evidence of adverse or incompatible land-use
relationships, inadequate street layout, improper
subdivision, parcels of inadequate shape and size to meet
contemporary development standards, or other evidence
demonstrating an absence of effective community planning.
(12) The area has incurred Illinois Environmental
Protection Agency or United States Environmental
Protection Agency remediation costs for, or a study
conducted by an independent consultant recognized as
having expertise in environmental remediation has
determined a need for, the clean-up of hazardous waste,
hazardous substances, or underground storage tanks
required by State or federal law, provided that the

SB4200 - 367 - LRB104 21786 TRT 37479 b
remediation costs constitute a material impediment to the
development or redevelopment of the redevelopment project
area.
(13) The total equalized assessed value of the
proposed redevelopment project area has declined for 3 of
the last 5 calendar years for which information is
available or is increasing at an annual rate that is less
than the balance of the municipality for 3 of the last 5
calendar years for which information is available or is
increasing at an annual rate that is less than the
Consumer Price Index for All Urban Consumers published by
the United States Department of Labor or successor agency
for 3 of the last 5 calendar years for which information is
available.
(c) "Industrial park" means an area in a blighted or
conservation area suitable for use by any manufacturing,
industrial, research or transportation enterprise, of
facilities to include but not be limited to factories, mills,
processing plants, assembly plants, packing plants,
fabricating plants, industrial distribution centers,
warehouses, repair overhaul or service facilities, freight
terminals, research facilities, test facilities or railroad
facilities.
(d) "Industrial park conservation area" means an area
within the boundaries of a redevelopment project area located
within the territorial limits of a municipality that is a

SB4200 - 368 - LRB104 21786 TRT 37479 b
labor surplus municipality or within 1 1/2 miles of the
territorial limits of a municipality that is a labor surplus
municipality if the area is annexed to the municipality; which
area is zoned as industrial no later than at the time the
municipality by ordinance designates the redevelopment project
area, and which area includes both vacant land suitable for
use as an industrial park and a blighted area or conservation
area contiguous to such vacant land.
(e) "Labor surplus municipality" means a municipality in
which, at any time during the 6 months before the municipality
by ordinance designates an industrial park conservation area,
the unemployment rate was over 6% and was also 100% or more of
the national average unemployment rate for that same time as
published in the United States Department of Labor Bureau of
Labor Statistics publication entitled "The Employment
Situation" or its successor publication. For the purpose of
this subsection, if unemployment rate statistics for the
municipality are not available, the unemployment rate in the
municipality shall be deemed to be the same as the
unemployment rate in the principal county in which the
municipality is located.
(f) "Municipality" shall mean a city, village,
incorporated town, or a township that is located in the
unincorporated portion of a county with 3 million or more
inhabitants, if the county adopted an ordinance that approved
the township's redevelopment plan.

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(g) "Initial Sales Tax Amounts" means the amount of taxes
paid under the Retailers' Occupation Tax Act, Use Tax Act,
Service Use Tax Act, the Service Occupation Tax Act, the
Municipal Retailers' Occupation Tax Act, and the Municipal
Service Occupation Tax Act by retailers and servicemen on
transactions at places located in a State Sales Tax Boundary
during the calendar year 1985.
(g-1) "Revised Initial Sales Tax Amounts" means the amount
of taxes paid under the Retailers' Occupation Tax Act, Use Tax
Act, Service Use Tax Act, the Service Occupation Tax Act, the
Municipal Retailers' Occupation Tax Act, and the Municipal
Service Occupation Tax Act by retailers and servicemen on
transactions at places located within the State Sales Tax
Boundary revised pursuant to Section 11-74.4-8a(9) of this
Act.
(h) "Municipal Sales Tax Increment" means an amount equal
to the increase in the aggregate amount of taxes paid to a
municipality from the Local Government Tax Fund arising from
sales by retailers and servicemen within the redevelopment
project area or State Sales Tax Boundary, as the case may be,
for as long as the redevelopment project area or State Sales
Tax Boundary, as the case may be, exist over and above the
aggregate amount of taxes as certified by the Illinois
Department of Revenue and paid under the Municipal Retailers'
Occupation Tax Act and the Municipal Service Occupation Tax
Act by retailers and servicemen, on transactions at places of

SB4200 - 370 - LRB104 21786 TRT 37479 b
business located in the redevelopment project area or State
Sales Tax Boundary, as the case may be, during the base year
which shall be the calendar year immediately prior to the year
in which the municipality adopted tax increment allocation
financing. For purposes of computing the aggregate amount of
such taxes for base years occurring prior to 1985, the
Department of Revenue shall determine the Initial Sales Tax
Amounts for such taxes and deduct therefrom an amount equal to
4% of the aggregate amount of taxes per year for each year the
base year is prior to 1985, but not to exceed a total deduction
of 12%. The amount so determined shall be known as the
"Adjusted Initial Sales Tax Amounts". For purposes of
determining the Municipal Sales Tax Increment, the Department
of Revenue shall for each period subtract from the amount paid
to the municipality from the Local Government Tax Fund arising
from sales by retailers and servicemen on transactions located
in the redevelopment project area or the State Sales Tax
Boundary, as the case may be, the certified Initial Sales Tax
Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
Initial Sales Tax Amounts for the Municipal Retailers'
Occupation Tax Act and the Municipal Service Occupation Tax
Act. For the State Fiscal Year 1989, this calculation shall be
made by utilizing the calendar year 1987 to determine the tax
amounts received. For the State Fiscal Year 1990, this
calculation shall be made by utilizing the period from January
1, 1988, until September 30, 1988, to determine the tax

SB4200 - 371 - LRB104 21786 TRT 37479 b
amounts received from retailers and servicemen pursuant to the
Municipal Retailers' Occupation Tax and the Municipal Service
Occupation Tax Act, which shall have deducted therefrom
nine-twelfths of the certified Initial Sales Tax Amounts, the
Adjusted Initial Sales Tax Amounts or the Revised Initial
Sales Tax Amounts as appropriate. For the State Fiscal Year
1991, this calculation shall be made by utilizing the period
from October 1, 1988, to June 30, 1989, to determine the tax
amounts received from retailers and servicemen pursuant to the
Municipal Retailers' Occupation Tax and the Municipal Service
Occupation Tax Act which shall have deducted therefrom
nine-twelfths of the certified Initial Sales Tax Amounts,
Adjusted Initial Sales Tax Amounts or the Revised Initial
Sales Tax Amounts as appropriate. For every State Fiscal Year
thereafter, the applicable period shall be the 12 months
beginning July 1 and ending June 30 to determine the tax
amounts received which shall have deducted therefrom the
certified Initial Sales Tax Amounts, the Adjusted Initial
Sales Tax Amounts or the Revised Initial Sales Tax Amounts, as
the case may be.
(i) "Net State Sales Tax Increment" means the sum of the
following: (a) 80% of the first $100,000 of State Sales Tax
Increment annually generated within a State Sales Tax
Boundary; (b) 60% of the amount in excess of $100,000 but not
exceeding $500,000 of State Sales Tax Increment annually
generated within a State Sales Tax Boundary; and (c) 40% of all

SB4200 - 372 - LRB104 21786 TRT 37479 b
amounts in excess of $500,000 of State Sales Tax Increment
annually generated within a State Sales Tax Boundary. If,
however, a municipality established a tax increment financing
district in a county with a population in excess of 3,000,000
before January 1, 1986, and the municipality entered into a
contract or issued bonds after January 1, 1986, but before
December 31, 1986, to finance redevelopment project costs
within a State Sales Tax Boundary, then the Net State Sales Tax
Increment means, for the fiscal years beginning July 1, 1990,
and July 1, 1991, 100% of the State Sales Tax Increment
annually generated within a State Sales Tax Boundary; and
notwithstanding any other provision of this Act, for those
fiscal years the Department of Revenue shall distribute to
those municipalities 100% of their Net State Sales Tax
Increment before any distribution to any other municipality
and regardless of whether or not those other municipalities
will receive 100% of their Net State Sales Tax Increment. For
Fiscal Year 1999, and every year thereafter until the year
2007, for any municipality that has not entered into a
contract or has not issued bonds prior to June 1, 1988 to
finance redevelopment project costs within a State Sales Tax
Boundary, the Net State Sales Tax Increment shall be
calculated as follows: By multiplying the Net State Sales Tax
Increment by 90% in the State Fiscal Year 1999; 80% in the
State Fiscal Year 2000; 70% in the State Fiscal Year 2001; 60%
in the State Fiscal Year 2002; 50% in the State Fiscal Year

SB4200 - 373 - LRB104 21786 TRT 37479 b
2003; 40% in the State Fiscal Year 2004; 30% in the State
Fiscal Year 2005; 20% in the State Fiscal Year 2006; and 10% in
the State Fiscal Year 2007. No payment shall be made for State
Fiscal Year 2008 and thereafter.
Municipalities that issued bonds in connection with a
redevelopment project in a redevelopment project area within
the State Sales Tax Boundary prior to July 29, 1991, or that
entered into contracts in connection with a redevelopment
project in a redevelopment project area before June 1, 1988,
shall continue to receive their proportional share of the
Illinois Tax Increment Fund distribution until the date on
which the redevelopment project is completed or terminated.
If, however, a municipality that issued bonds in connection
with a redevelopment project in a redevelopment project area
within the State Sales Tax Boundary prior to July 29, 1991
retires the bonds prior to June 30, 2007 or a municipality that
entered into contracts in connection with a redevelopment
project in a redevelopment project area before June 1, 1988
completes the contracts prior to June 30, 2007, then so long as
the redevelopment project is not completed or is not
terminated, the Net State Sales Tax Increment shall be
calculated, beginning on the date on which the bonds are
retired or the contracts are completed, as follows: By
multiplying the Net State Sales Tax Increment by 60% in the
State Fiscal Year 2002; 50% in the State Fiscal Year 2003; 40%
in the State Fiscal Year 2004; 30% in the State Fiscal Year

SB4200 - 374 - LRB104 21786 TRT 37479 b
2005; 20% in the State Fiscal Year 2006; and 10% in the State
Fiscal Year 2007. No payment shall be made for State Fiscal
Year 2008 and thereafter. Refunding of any bonds issued prior
to July 29, 1991, shall not alter the Net State Sales Tax
Increment.
(j) "State Utility Tax Increment Amount" means an amount
equal to the aggregate increase in State electric and gas tax
charges imposed on owners and tenants, other than residential
customers, of properties located within the redevelopment
project area under Section 9-222 of the Public Utilities Act,
over and above the aggregate of such charges as certified by
the Department of Revenue and paid by owners and tenants,
other than residential customers, of properties within the
redevelopment project area during the base year, which shall
be the calendar year immediately prior to the year of the
adoption of the ordinance authorizing tax increment allocation
financing.
(k) "Net State Utility Tax Increment" means the sum of the
following: (a) 80% of the first $100,000 of State Utility Tax
Increment annually generated by a redevelopment project area;
(b) 60% of the amount in excess of $100,000 but not exceeding
$500,000 of the State Utility Tax Increment annually generated
by a redevelopment project area; and (c) 40% of all amounts in
excess of $500,000 of State Utility Tax Increment annually
generated by a redevelopment project area. For the State
Fiscal Year 1999, and every year thereafter until the year

SB4200 - 375 - LRB104 21786 TRT 37479 b
2007, for any municipality that has not entered into a
contract or has not issued bonds prior to June 1, 1988 to
finance redevelopment project costs within a redevelopment
project area, the Net State Utility Tax Increment shall be
calculated as follows: By multiplying the Net State Utility
Tax Increment by 90% in the State Fiscal Year 1999; 80% in the
State Fiscal Year 2000; 70% in the State Fiscal Year 2001; 60%
in the State Fiscal Year 2002; 50% in the State Fiscal Year
2003; 40% in the State Fiscal Year 2004; 30% in the State
Fiscal Year 2005; 20% in the State Fiscal Year 2006; and 10% in
the State Fiscal Year 2007. No payment shall be made for the
State Fiscal Year 2008 and thereafter.
Municipalities that issue bonds in connection with the
redevelopment project during the period from June 1, 1988
until 3 years after the effective date of this Amendatory Act
of 1988 shall receive the Net State Utility Tax Increment,
subject to appropriation, for 15 State Fiscal Years after the
issuance of such bonds. For the 16th through the 20th State
Fiscal Years after issuance of the bonds, the Net State
Utility Tax Increment shall be calculated as follows: By
multiplying the Net State Utility Tax Increment by 90% in year
16; 80% in year 17; 70% in year 18; 60% in year 19; and 50% in
year 20. Refunding of any bonds issued prior to June 1, 1988,
shall not alter the revised Net State Utility Tax Increment
payments set forth above.
(l) "Obligations" mean bonds, loans, debentures, notes,

SB4200 - 376 - LRB104 21786 TRT 37479 b
special certificates or other evidence of indebtedness issued
by the municipality to carry out a redevelopment project or to
refund outstanding obligations.
(m) "Payment in lieu of taxes" means those estimated tax
revenues from real property in a redevelopment project area
derived from real property that has been acquired by a
municipality which according to the redevelopment project or
plan is to be used for a private use which taxing districts
would have received had a municipality not acquired the real
property and adopted tax increment allocation financing and
which would result from levies made after the time of the
adoption of tax increment allocation financing to the time the
current equalized value of real property in the redevelopment
project area exceeds the total initial equalized value of real
property in said area.
(n) "Redevelopment plan" means the comprehensive program
of the municipality for development or redevelopment intended
by the payment of redevelopment project costs to reduce or
eliminate those conditions the existence of which qualified
the redevelopment project area as a "blighted area" or
"conservation area" or combination thereof or "industrial park
conservation area," and thereby to enhance the tax bases of
the taxing districts which extend into the redevelopment
project area, provided that, with respect to redevelopment
project areas described in subsections (p-1) and (p-2),
"redevelopment plan" means the comprehensive program of the

SB4200 - 377 - LRB104 21786 TRT 37479 b
affected municipality for the development of qualifying
transit facilities. On and after November 1, 1999 (the
effective date of Public Act 91-478), no redevelopment plan
may be approved or amended that includes the development of
vacant land (i) with a golf course and related clubhouse and
other facilities or (ii) designated by federal, State, county,
or municipal government as public land for outdoor
recreational activities or for nature preserves and used for
that purpose within 5 years prior to the adoption of the
redevelopment plan. For the purpose of this subsection,
"recreational activities" is limited to mean camping and
hunting. Each redevelopment plan shall set forth in writing
the program to be undertaken to accomplish the objectives and
shall include but not be limited to:
(A) an itemized list of estimated redevelopment
project costs;
(B) evidence indicating that the redevelopment project
area on the whole has not been subject to growth and
development through investment by private enterprise,
provided that such evidence shall not be required for any
redevelopment project area located within a transit
facility improvement area established pursuant to Section
11-74.4-3.3;
(C) an assessment of any financial impact of the
redevelopment project area on or any increased demand for
services from any taxing district affected by the plan and

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any program to address such financial impact or increased
demand;
(D) the sources of funds to pay costs;
(E) the nature and term of the obligations to be
issued;
(F) the most recent equalized assessed valuation of
the redevelopment project area;
(G) an estimate as to the equalized assessed valuation
after redevelopment and the general land uses to apply in
the redevelopment project area;
(H) a commitment to fair employment practices and an
affirmative action plan;
(I) if it concerns an industrial park conservation
area, the plan shall also include a general description of
any proposed developer, user and tenant of any property, a
description of the type, structure and general character
of the facilities to be developed, a description of the
type, class and number of new employees to be employed in
the operation of the facilities to be developed; and
(J) if property is to be annexed to the municipality,
the plan shall include the terms of the annexation
agreement.
The provisions of items (B) and (C) of this subsection (n)
shall not apply to a municipality that before March 14, 1994
(the effective date of Public Act 88-537) had fixed, either by
its corporate authorities or by a commission designated under

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subsection (k) of Section 11-74.4-4, a time and place for a
public hearing as required by subsection (a) of Section
11-74.4-5. No redevelopment plan shall be adopted unless a
municipality complies with all of the following requirements:
(1) The municipality finds that the redevelopment
project area on the whole has not been subject to growth
and development through investment by private enterprise
and would not reasonably be anticipated to be developed
without the adoption of the redevelopment plan, provided,
however, that such a finding shall not be required with
respect to any redevelopment project area located within a
transit facility improvement area established pursuant to
Section 11-74.4-3.3.
(2) The municipality finds that the redevelopment plan
and project conform to the comprehensive plan for the
development of the municipality as a whole, or, for
municipalities with a population of 100,000 or more,
regardless of when the redevelopment plan and project was
adopted, the redevelopment plan and project either: (i)
conforms to the strategic economic development or
redevelopment plan issued by the designated planning
authority of the municipality, or (ii) includes land uses
that have been approved by the planning commission of the
municipality.
(3) The redevelopment plan establishes the estimated
dates of completion of the redevelopment project and

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retirement of obligations issued to finance redevelopment
project costs. Those dates may not be later than the dates
set forth under Section 11-74.4-3.5.
A municipality may by municipal ordinance amend an
existing redevelopment plan to conform to this paragraph
(3) as amended by Public Act 91-478, which municipal
ordinance may be adopted without further hearing or notice
and without complying with the procedures provided in this
Act pertaining to an amendment to or the initial approval
of a redevelopment plan and project and designation of a
redevelopment project area.
(3.5) The municipality finds, in the case of an
industrial park conservation area, also that the
municipality is a labor surplus municipality and that the
implementation of the redevelopment plan will reduce
unemployment, create new jobs and by the provision of new
facilities enhance the tax base of the taxing districts
that extend into the redevelopment project area.
(4) If any incremental revenues are being utilized
under Section 8(a)(1) or 8(a)(2) of this Act in
redevelopment project areas approved by ordinance after
January 1, 1986, the municipality finds: (a) that the
redevelopment project area would not reasonably be
developed without the use of such incremental revenues,
and (b) that such incremental revenues will be exclusively
utilized for the development of the redevelopment project

SB4200 - 381 - LRB104 21786 TRT 37479 b
area.
(5) If: (a) the redevelopment plan will not result in
displacement of residents from 10 or more inhabited
residential units, and the municipality certifies in the
plan that such displacement will not result from the plan;
or (b) the redevelopment plan is for a redevelopment
project area or a qualifying transit facility located
within a transit facility improvement area established
pursuant to Section 11-74.4-3.3, and the applicable
project is subject to the process for evaluation of
environmental effects under the National Environmental
Policy Act of 1969, 42 U.S.C. 4321 et seq., then a housing
impact study need not be performed. If, however, the
redevelopment plan would result in the displacement of
residents from 10 or more inhabited residential units, or
if the redevelopment project area contains 75 or more
inhabited residential units and no certification is made,
then the municipality shall prepare, as part of the
separate feasibility report required by subsection (a) of
Section 11-74.4-5, a housing impact study.
Part I of the housing impact study shall include (i)
data as to whether the residential units are single family
or multi-family units, (ii) the number and type of rooms
within the units, if that information is available, (iii)
whether the units are inhabited or uninhabited, as
determined not less than 45 days before the date that the

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ordinance or resolution required by subsection (a) of
Section 11-74.4-5 is passed, and (iv) data as to the
racial and ethnic composition of the residents in the
inhabited residential units. The data requirement as to
the racial and ethnic composition of the residents in the
inhabited residential units shall be deemed to be fully
satisfied by data from the most recent federal census.
Part II of the housing impact study shall identify the
inhabited residential units in the proposed redevelopment
project area that are to be or may be removed. If inhabited
residential units are to be removed, then the housing
impact study shall identify (i) the number and location of
those units that will or may be removed, (ii) the
municipality's plans for relocation assistance for those
residents in the proposed redevelopment project area whose
residences are to be removed, (iii) the availability of
replacement housing for those residents whose residences
are to be removed, and shall identify the type, location,
and cost of the housing, and (iv) the type and extent of
relocation assistance to be provided.
(6) On and after November 1, 1999, the housing impact
study required by paragraph (5) shall be incorporated in
the redevelopment plan for the redevelopment project area.
(7) On and after November 1, 1999, no redevelopment
plan shall be adopted, nor an existing plan amended, nor
shall residential housing that is occupied by households

SB4200 - 383 - LRB104 21786 TRT 37479 b
of low-income and very low-income persons in currently
existing redevelopment project areas be removed after
November 1, 1999 unless the redevelopment plan provides,
with respect to inhabited housing units that are to be
removed for households of low-income and very low-income
persons, affordable housing and relocation assistance not
less than that which would be provided under the federal
Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 and the regulations under
that Act, including the eligibility criteria. Affordable
housing may be either existing or newly constructed
housing. For purposes of this paragraph (7), "low-income
households", "very low-income households", and "affordable
housing" have the meanings set forth in the Illinois
Affordable Housing Act. The municipality shall make a good
faith effort to ensure that this affordable housing is
located in or near the redevelopment project area within
the municipality.
(8) On and after November 1, 1999, if, after the
adoption of the redevelopment plan for the redevelopment
project area, any municipality desires to amend its
redevelopment plan to remove more inhabited residential
units than specified in its original redevelopment plan,
that change shall be made in accordance with the
procedures in subsection (c) of Section 11-74.4-5.
(9) For redevelopment project areas designated prior

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to November 1, 1999, the redevelopment plan may be amended
without further joint review board meeting or hearing,
provided that the municipality shall give notice of any
such changes by mail to each affected taxing district and
registrant on the interested party registry, to authorize
the municipality to expend tax increment revenues for
redevelopment project costs defined by paragraphs (5) and
(7.5), subparagraphs (E) and (F) of paragraph (11), and
paragraph (11.5) of subsection (q) of Section 11-74.4-3,
so long as the changes do not increase the total estimated
redevelopment project costs set out in the redevelopment
plan by more than 5% after adjustment for inflation from
the date the plan was adopted.
(o) "Redevelopment project" means any public and private
development project in furtherance of the objectives of a
redevelopment plan. On and after November 1, 1999 (the
effective date of Public Act 91-478), no redevelopment plan
may be approved or amended that includes the development of
vacant land (i) with a golf course and related clubhouse and
other facilities or (ii) designated by federal, State, county,
or municipal government as public land for outdoor
recreational activities or for nature preserves and used for
that purpose within 5 years prior to the adoption of the
redevelopment plan. For the purpose of this subsection,
"recreational activities" is limited to mean camping and
hunting.

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(p) "Redevelopment project area" means an area designated
by the municipality, which is not less in the aggregate than 1
1/2 acres and in respect to which the municipality has made a
finding that there exist conditions which cause the area to be
classified as an industrial park conservation area or a
blighted area or a conservation area, or a combination of both
blighted areas and conservation areas.
(p-1) Notwithstanding any provision of this Act to the
contrary, on and after August 25, 2009 (the effective date of
Public Act 96-680), a redevelopment project area may include
areas within a one-half mile radius of an existing or proposed
Regional Transportation Authority Suburban Transit Access
Route (STAR Line) station without a finding that the area is
classified as an industrial park conservation area, a blighted
area, a conservation area, or a combination thereof, but only
if the municipality receives unanimous consent from the joint
review board created to review the proposed redevelopment
project area.
(p-2) Notwithstanding any provision of this Act to the
contrary, on and after the effective date of this amendatory
Act of the 99th General Assembly, a redevelopment project area
may include areas within a transit facility improvement area
that has been established pursuant to Section 11-74.4-3.3
without a finding that the area is classified as an industrial
park conservation area, a blighted area, a conservation area,
or any combination thereof.

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(q) "Redevelopment project costs", except for
redevelopment project areas created pursuant to subsection
(p-1) or (p-2), means and includes the sum total of all
reasonable or necessary costs incurred or estimated to be
incurred, and any such costs incidental to a redevelopment
plan and a redevelopment project. Such costs include, without
limitation, the following:
(1) Costs of studies, surveys, development of plans,
and specifications, implementation and administration of
the redevelopment plan including but not limited to staff
and professional service costs for architectural,
engineering, legal, financial, planning or other services,
provided however that no charges for professional services
may be based on a percentage of the tax increment
collected; except that on and after November 1, 1999 (the
effective date of Public Act 91-478), no contracts for
professional services, excluding architectural and
engineering services, may be entered into if the terms of
the contract extend beyond a period of 3 years. In
addition, "redevelopment project costs" shall not include
lobbying expenses. After consultation with the
municipality, each tax increment consultant or advisor to
a municipality that plans to designate or has designated a
redevelopment project area shall inform the municipality
in writing of any contracts that the consultant or advisor
has entered into with entities or individuals that have

SB4200 - 387 - LRB104 21786 TRT 37479 b
received, or are receiving, payments financed by tax
increment revenues produced by the redevelopment project
area with respect to which the consultant or advisor has
performed, or will be performing, service for the
municipality. This requirement shall be satisfied by the
consultant or advisor before the commencement of services
for the municipality and thereafter whenever any other
contracts with those individuals or entities are executed
by the consultant or advisor;
(1.5) After July 1, 1999, annual administrative costs
shall not include general overhead or administrative costs
of the municipality that would still have been incurred by
the municipality if the municipality had not designated a
redevelopment project area or approved a redevelopment
plan;
(1.6) The cost of marketing sites within the
redevelopment project area to prospective businesses,
developers, and investors;
(2) Property assembly costs, including but not limited
to acquisition of land and other property, real or
personal, or rights or interests therein, demolition of
buildings, site preparation, site improvements that serve
as an engineered barrier addressing ground level or below
ground environmental contamination, including, but not
limited to parking lots and other concrete or asphalt
barriers, and the clearing and grading of land;

SB4200 - 388 - LRB104 21786 TRT 37479 b
(3) Costs of rehabilitation, reconstruction or repair
or remodeling of existing public or private buildings,
fixtures, and leasehold improvements; and the cost of
replacing an existing public building if pursuant to the
implementation of a redevelopment project the existing
public building is to be demolished to use the site for
private investment or devoted to a different use requiring
private investment; including any direct or indirect costs
relating to Green Globes or LEED certified construction
elements or construction elements with an equivalent
certification;
(4) Costs of the construction of public works or
improvements, including any direct or indirect costs
relating to Green Globes or LEED certified construction
elements or construction elements with an equivalent
certification, except that on and after November 1, 1999,
redevelopment project costs shall not include the cost of
constructing a new municipal public building principally
used to provide offices, storage space, or conference
facilities or vehicle storage, maintenance, or repair for
administrative, public safety, or public works personnel
and that is not intended to replace an existing public
building as provided under paragraph (3) of subsection (q)
of Section 11-74.4-3 unless either (i) the construction of
the new municipal building implements a redevelopment
project that was included in a redevelopment plan that was

SB4200 - 389 - LRB104 21786 TRT 37479 b
adopted by the municipality prior to November 1, 1999,
(ii) the municipality makes a reasonable determination in
the redevelopment plan, supported by information that
provides the basis for that determination, that the new
municipal building is required to meet an increase in the
need for public safety purposes anticipated to result from
the implementation of the redevelopment plan, or (iii) the
new municipal public building is for the storage,
maintenance, or repair of transit vehicles and is located
in a transit facility improvement area that has been
established pursuant to Section 11-74.4-3.3;
(5) Costs of job training and retraining projects,
including the cost of "welfare to work" programs
implemented by businesses located within the redevelopment
project area;
(6) Financing costs, including but not limited to all
necessary and incidental expenses related to the issuance
of obligations and which may include payment of interest
on any obligations issued hereunder including interest
accruing during the estimated period of construction of
any redevelopment project for which such obligations are
issued and for not exceeding 36 months thereafter and
including reasonable reserves related thereto;
(7) To the extent the municipality by written
agreement accepts and approves the same, all or a portion
of a taxing district's capital costs resulting from the

SB4200 - 390 - LRB104 21786 TRT 37479 b
redevelopment project necessarily incurred or to be
incurred within a taxing district in furtherance of the
objectives of the redevelopment plan and project;
(7.5) For redevelopment project areas designated (or
redevelopment project areas amended to add or increase the
number of tax-increment-financing assisted housing units)
on or after November 1, 1999, an elementary, secondary, or
unit school district's increased costs attributable to
assisted housing units located within the redevelopment
project area for which the developer or redeveloper
receives financial assistance through an agreement with
the municipality or because the municipality incurs the
cost of necessary infrastructure improvements within the
boundaries of the assisted housing sites necessary for the
completion of that housing as authorized by this Act, and
which costs shall be paid by the municipality from the
Special Tax Allocation Fund when the tax increment revenue
is received as a result of the assisted housing units and
shall be calculated annually as follows:
(A) for foundation districts, excluding any school
district in a municipality with a population in excess
of 1,000,000, by multiplying the district's increase
in attendance resulting from the net increase in new
students enrolled in that school district who reside
in housing units within the redevelopment project area
that have received financial assistance through an

SB4200 - 391 - LRB104 21786 TRT 37479 b
agreement with the municipality or because the
municipality incurs the cost of necessary
infrastructure improvements within the boundaries of
the housing sites necessary for the completion of that
housing as authorized by this Act since the
designation of the redevelopment project area by the
most recently available per capita tuition cost as
defined in Section 10-20.12a of the School Code less
any increase in general State aid as defined in
Section 18-8.05 of the School Code or evidence-based
funding as defined in Section 18-8.15 of the School
Code attributable to these added new students subject
to the following annual limitations:
(i) for unit school districts with a district
average 1995-96 Per Capita Tuition Charge of less
than $5,900, no more than 25% of the total amount
of property tax increment revenue produced by
those housing units that have received tax
increment finance assistance under this Act;
(ii) for elementary school districts with a
district average 1995-96 Per Capita Tuition Charge
of less than $5,900, no more than 17% of the total
amount of property tax increment revenue produced
by those housing units that have received tax
increment finance assistance under this Act; and
(iii) for secondary school districts with a

SB4200 - 392 - LRB104 21786 TRT 37479 b
district average 1995-96 Per Capita Tuition Charge
of less than $5,900, no more than 8% of the total
amount of property tax increment revenue produced
by those housing units that have received tax
increment finance assistance under this Act.
(B) For alternate method districts, flat grant
districts, and foundation districts with a district
average 1995-96 Per Capita Tuition Charge equal to or
more than $5,900, excluding any school district with a
population in excess of 1,000,000, by multiplying the
district's increase in attendance resulting from the
net increase in new students enrolled in that school
district who reside in housing units within the
redevelopment project area that have received
financial assistance through an agreement with the
municipality or because the municipality incurs the
cost of necessary infrastructure improvements within
the boundaries of the housing sites necessary for the
completion of that housing as authorized by this Act
since the designation of the redevelopment project
area by the most recently available per capita tuition
cost as defined in Section 10-20.12a of the School
Code less any increase in general state aid as defined
in Section 18-8.05 of the School Code or
evidence-based funding as defined in Section 18-8.15
of the School Code attributable to these added new

SB4200 - 393 - LRB104 21786 TRT 37479 b
students subject to the following annual limitations:
(i) for unit school districts, no more than
40% of the total amount of property tax increment
revenue produced by those housing units that have
received tax increment finance assistance under
this Act;
(ii) for elementary school districts, no more
than 27% of the total amount of property tax
increment revenue produced by those housing units
that have received tax increment finance
assistance under this Act; and
(iii) for secondary school districts, no more
than 13% of the total amount of property tax
increment revenue produced by those housing units
that have received tax increment finance
assistance under this Act.
(C) For any school district in a municipality with
a population in excess of 1,000,000, the following
restrictions shall apply to the reimbursement of
increased costs under this paragraph (7.5):
(i) no increased costs shall be reimbursed
unless the school district certifies that each of
the schools affected by the assisted housing
project is at or over its student capacity;
(ii) the amount reimbursable shall be reduced
by the value of any land donated to the school

SB4200 - 394 - LRB104 21786 TRT 37479 b
district by the municipality or developer, and by
the value of any physical improvements made to the
schools by the municipality or developer; and
(iii) the amount reimbursed may not affect
amounts otherwise obligated by the terms of any
bonds, notes, or other funding instruments, or the
terms of any redevelopment agreement.
Any school district seeking payment under this
paragraph (7.5) shall, after July 1 and before
September 30 of each year, provide the municipality
with reasonable evidence to support its claim for
reimbursement before the municipality shall be
required to approve or make the payment to the school
district. If the school district fails to provide the
information during this period in any year, it shall
forfeit any claim to reimbursement for that year.
School districts may adopt a resolution waiving the
right to all or a portion of the reimbursement
otherwise required by this paragraph (7.5). By
acceptance of this reimbursement the school district
waives the right to directly or indirectly set aside,
modify, or contest in any manner the establishment of
the redevelopment project area or projects;
(7.7) For redevelopment project areas designated (or
redevelopment project areas amended to add or increase the
number of tax-increment-financing assisted housing units)

SB4200 - 395 - LRB104 21786 TRT 37479 b
on or after January 1, 2005 (the effective date of Public
Act 93-961), a public library district's increased costs
attributable to assisted housing units located within the
redevelopment project area for which the developer or
redeveloper receives financial assistance through an
agreement with the municipality or because the
municipality incurs the cost of necessary infrastructure
improvements within the boundaries of the assisted housing
sites necessary for the completion of that housing as
authorized by this Act shall be paid to the library
district by the municipality from the Special Tax
Allocation Fund when the tax increment revenue is received
as a result of the assisted housing units. This paragraph
(7.7) applies only if (i) the library district is located
in a county that is subject to the Property Tax Extension
Limitation Law or (ii) the library district is not located
in a county that is subject to the Property Tax Extension
Limitation Law but the district is prohibited by any other
law from increasing its tax levy rate without a prior
voter referendum.
The amount paid to a library district under this
paragraph (7.7) shall be calculated by multiplying (i) the
net increase in the number of persons eligible to obtain a
library card in that district who reside in housing units
within the redevelopment project area that have received
financial assistance through an agreement with the

SB4200 - 396 - LRB104 21786 TRT 37479 b
municipality or because the municipality incurs the cost
of necessary infrastructure improvements within the
boundaries of the housing sites necessary for the
completion of that housing as authorized by this Act since
the designation of the redevelopment project area by (ii)
the per-patron cost of providing library services so long
as it does not exceed $120. The per-patron cost shall be
the Total Operating Expenditures Per Capita for the
library in the previous fiscal year. The municipality may
deduct from the amount that it must pay to a library
district under this paragraph any amount that it has
voluntarily paid to the library district from the tax
increment revenue. The amount paid to a library district
under this paragraph (7.7) shall be no more than 2% of the
amount produced by the assisted housing units and
deposited into the Special Tax Allocation Fund.
A library district is not eligible for any payment
under this paragraph (7.7) unless the library district has
experienced an increase in the number of patrons from the
municipality that created the tax-increment-financing
district since the designation of the redevelopment
project area.
Any library district seeking payment under this
paragraph (7.7) shall, after July 1 and before September
30 of each year, provide the municipality with convincing
evidence to support its claim for reimbursement before the

SB4200 - 397 - LRB104 21786 TRT 37479 b
municipality shall be required to approve or make the
payment to the library district. If the library district
fails to provide the information during this period in any
year, it shall forfeit any claim to reimbursement for that
year. Library districts may adopt a resolution waiving the
right to all or a portion of the reimbursement otherwise
required by this paragraph (7.7). By acceptance of such
reimbursement, the library district shall forfeit any
right to directly or indirectly set aside, modify, or
contest in any manner whatsoever the establishment of the
redevelopment project area or projects;
(8) Relocation costs to the extent that a municipality
determines that relocation costs shall be paid or is
required to make payment of relocation costs by federal or
State law or in order to satisfy subparagraph (7) of
subsection (n);
(9) Payment in lieu of taxes;
(10) Costs of job training, retraining, advanced
vocational education or career education, including but
not limited to courses in occupational, semi-technical or
technical fields leading directly to employment, incurred
by one or more taxing districts, provided that such costs
(i) are related to the establishment and maintenance of
additional job training, advanced vocational education or
career education programs for persons employed or to be
employed by employers located in a redevelopment project

SB4200 - 398 - LRB104 21786 TRT 37479 b
area; and (ii) when incurred by a taxing district or
taxing districts other than the municipality, are set
forth in a written agreement by or among the municipality
and the taxing district or taxing districts, which
agreement describes the program to be undertaken,
including but not limited to the number of employees to be
trained, a description of the training and services to be
provided, the number and type of positions available or to
be available, itemized costs of the program and sources of
funds to pay for the same, and the term of the agreement.
Such costs include, specifically, the payment by community
college districts of costs pursuant to Sections 3-37,
3-38, 3-40 and 3-40.1 of the Public Community College Act
and by school districts of costs pursuant to Sections
10-22.20a and 10-23.3a of the School Code;
(11) Interest cost incurred by a redeveloper related
to the construction, renovation or rehabilitation of a
redevelopment project provided that:
(A) such costs are to be paid directly from the
special tax allocation fund established pursuant to
this Act;
(B) such payments in any one year may not exceed
30% of the annual interest costs incurred by the
redeveloper with regard to the redevelopment project
during that year;
(C) if there are not sufficient funds available in

SB4200 - 399 - LRB104 21786 TRT 37479 b
the special tax allocation fund to make the payment
pursuant to this paragraph (11) then the amounts so
due shall accrue and be payable when sufficient funds
are available in the special tax allocation fund;
(D) the total of such interest payments paid
pursuant to this Act may not exceed 30% of the total
(i) cost paid or incurred by the redeveloper for the
redevelopment project plus (ii) redevelopment project
costs excluding any property assembly costs and any
relocation costs incurred by a municipality pursuant
to this Act;
(E) the cost limits set forth in subparagraphs (B)
and (D) of paragraph (11) shall be modified for the
financing of rehabilitated or new housing units for
low-income households and very low-income households,
as defined in Section 3 of the Illinois Affordable
Housing Act. The percentage of 75% shall be
substituted for 30% in subparagraphs (B) and (D) of
paragraph (11); and
(F) instead of the eligible costs provided by
subparagraphs (B) and (D) of paragraph (11), as
modified by this subparagraph, and notwithstanding any
other provisions of this Act to the contrary, the
municipality may pay from tax increment revenues up to
50% of the cost of construction of new housing units to
be occupied by low-income households and very

SB4200 - 400 - LRB104 21786 TRT 37479 b
low-income households as defined in Section 3 of the
Illinois Affordable Housing Act. The cost of
construction of those units may be derived from the
proceeds of bonds issued by the municipality under
this Act or other constitutional or statutory
authority or from other sources of municipal revenue
that may be reimbursed from tax increment revenues or
the proceeds of bonds issued to finance the
construction of that housing.
The eligible costs provided under this
subparagraph (F) of paragraph (11) shall be an
eligible cost for the construction, renovation, and
rehabilitation of all low and very low-income housing
units, as defined in Section 3 of the Illinois
Affordable Housing Act, within the redevelopment
project area. If the low and very low-income units are
part of a residential redevelopment project that
includes units not affordable to low and very
low-income households, only the low and very
low-income units shall be eligible for benefits under
this subparagraph (F) of paragraph (11). The standards
for maintaining the occupancy by low-income households
and very low-income households, as defined in Section
3 of the Illinois Affordable Housing Act, of those
units constructed with eligible costs made available
under the provisions of this subparagraph (F) of

SB4200 - 401 - LRB104 21786 TRT 37479 b
paragraph (11) shall be established by guidelines
adopted by the municipality. The responsibility for
annually documenting the initial occupancy of the
units by low-income households and very low-income
households, as defined in Section 3 of the Illinois
Affordable Housing Act, shall be that of the then
current owner of the property. For ownership units,
the guidelines will provide, at a minimum, for a
reasonable recapture of funds, or other appropriate
methods designed to preserve the original
affordability of the ownership units. For rental
units, the guidelines will provide, at a minimum, for
the affordability of rent to low and very low-income
households. As units become available, they shall be
rented to income-eligible tenants. The municipality
may modify these guidelines from time to time; the
guidelines, however, shall be in effect for as long as
tax increment revenue is being used to pay for costs
associated with the units or for the retirement of
bonds issued to finance the units or for the life of
the redevelopment project area, whichever is later;
(11.5) If the redevelopment project area is located
within a municipality with a population of more than
100,000, the cost of day care services for children of
employees from low-income families working for businesses
located within the redevelopment project area and all or a

SB4200 - 402 - LRB104 21786 TRT 37479 b
portion of the cost of operation of day care centers
established by redevelopment project area businesses to
serve employees from low-income families working in
businesses located in the redevelopment project area. For
the purposes of this paragraph, "low-income families"
means families whose annual income does not exceed 80% of
the municipal, county, or regional median income, adjusted
for family size, as the annual income and municipal,
county, or regional median income are determined from time
to time by the United States Department of Housing and
Urban Development.
(12) Costs relating to the development of urban
agricultural areas under Division 15.2 of the Illinois
Municipal Code.
(13) Costs relating to the construction or
rehabilitation of residential development housing units,
including the costs to offset infrastructure costs
necessary to enable housing developments and the costs to
promote the redevelopment of areas where market conditions
would not otherwise support residential investment.
Unless explicitly stated herein the cost of construction
of new privately-owned buildings shall not be an eligible
redevelopment project cost.
After November 1, 1999 (the effective date of Public Act
91-478), none of the redevelopment project costs enumerated in
this subsection shall be eligible redevelopment project costs

SB4200 - 403 - LRB104 21786 TRT 37479 b
if those costs would provide direct financial support to a
retail entity initiating operations in the redevelopment
project area while terminating operations at another Illinois
location within 10 miles of the redevelopment project area but
outside the boundaries of the redevelopment project area
municipality. For purposes of this paragraph, termination
means a closing of a retail operation that is directly related
to the opening of the same operation or like retail entity
owned or operated by more than 50% of the original ownership in
a redevelopment project area, but it does not mean closing an
operation for reasons beyond the control of the retail entity,
as documented by the retail entity, subject to a reasonable
finding by the municipality that the current location
contained inadequate space, had become economically obsolete,
or was no longer a viable location for the retailer or
serviceman.
No cost shall be a redevelopment project cost in a
redevelopment project area if used to demolish, remove, or
substantially modify a historic resource, after August 26,
2008 (the effective date of Public Act 95-934), unless no
prudent and feasible alternative exists. "Historic resource"
for the purpose of this paragraph means (i) a place or
structure that is included or eligible for inclusion on the
National Register of Historic Places or (ii) a contributing
structure in a district on the National Register of Historic
Places. This paragraph does not apply to a place or structure

SB4200 - 404 - LRB104 21786 TRT 37479 b
for which demolition, removal, or modification is subject to
review by the preservation agency of a Certified Local
Government designated as such by the National Park Service of
the United States Department of the Interior.
If a special service area has been established pursuant to
the Special Service Area Tax Act or Special Service Area Tax
Law, then any tax increment revenues derived from the tax
imposed pursuant to the Special Service Area Tax Act or
Special Service Area Tax Law may be used within the
redevelopment project area for the purposes permitted by that
Act or Law as well as the purposes permitted by this Act.
(q-1) For redevelopment project areas created pursuant to
subsection (p-1), redevelopment project costs are limited to
those costs in paragraph (q) that are related to the existing
or proposed Regional Transportation Authority Suburban Transit
Access Route (STAR Line) station.
(q-2) For a transit facility improvement area established
prior to, on, or after the effective date of this amendatory
Act of the 102nd General Assembly: (i) "redevelopment project
costs" means those costs described in subsection (q) that are
related to the construction, reconstruction, rehabilitation,
remodeling, or repair of any existing or proposed transit
facility, whether that facility is located within or outside
the boundaries of a redevelopment project area established
within that transit facility improvement area (and, to the
extent a redevelopment project cost is described in subsection

SB4200 - 405 - LRB104 21786 TRT 37479 b
(q) as incurred or estimated to be incurred with respect to a
redevelopment project area, then it shall apply with respect
to such transit facility improvement area); and (ii) the
provisions of Section 11-74.4-8 regarding tax increment
allocation financing for a redevelopment project area located
in a transit facility improvement area shall apply only to the
lots, blocks, tracts and parcels of real property that are
located within the boundaries of that redevelopment project
area and not to the lots, blocks, tracts, and parcels of real
property that are located outside the boundaries of that
redevelopment project area.
(r) "State Sales Tax Boundary" means the redevelopment
project area or the amended redevelopment project area
boundaries which are determined pursuant to subsection (9) of
Section 11-74.4-8a of this Act. The Department of Revenue
shall certify pursuant to subsection (9) of Section 11-74.4-8a
the appropriate boundaries eligible for the determination of
State Sales Tax Increment.
(s) "State Sales Tax Increment" means an amount equal to
the increase in the aggregate amount of taxes paid by
retailers and servicemen, other than retailers and servicemen
subject to the Public Utilities Act, on transactions at places
of business located within a State Sales Tax Boundary pursuant
to the Retailers' Occupation Tax Act, the Use Tax Act, the
Service Use Tax Act, and the Service Occupation Tax Act,
except such portion of such increase that is paid into the

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State and Local Sales Tax Reform Fund, the Local Government
Distributive Fund, the Local Government Tax Fund and the
County and Mass Transit District Fund, for as long as State
participation exists, over and above the Initial Sales Tax
Amounts, Adjusted Initial Sales Tax Amounts or the Revised
Initial Sales Tax Amounts for such taxes as certified by the
Department of Revenue and paid under those Acts by retailers
and servicemen on transactions at places of business located
within the State Sales Tax Boundary during the base year which
shall be the calendar year immediately prior to the year in
which the municipality adopted tax increment allocation
financing, less 3.0% of such amounts generated under the
Retailers' Occupation Tax Act, Use Tax Act and Service Use Tax
Act and the Service Occupation Tax Act, which sum shall be
appropriated to the Department of Revenue to cover its costs
of administering and enforcing this Section. For purposes of
computing the aggregate amount of such taxes for base years
occurring prior to 1985, the Department of Revenue shall
compute the Initial Sales Tax Amount for such taxes and deduct
therefrom an amount equal to 4% of the aggregate amount of
taxes per year for each year the base year is prior to 1985,
but not to exceed a total deduction of 12%. The amount so
determined shall be known as the "Adjusted Initial Sales Tax
Amount". For purposes of determining the State Sales Tax
Increment the Department of Revenue shall for each period
subtract from the tax amounts received from retailers and

SB4200 - 407 - LRB104 21786 TRT 37479 b
servicemen on transactions located in the State Sales Tax
Boundary, the certified Initial Sales Tax Amounts, Adjusted
Initial Sales Tax Amounts or Revised Initial Sales Tax Amounts
for the Retailers' Occupation Tax Act, the Use Tax Act, the
Service Use Tax Act and the Service Occupation Tax Act. For the
State Fiscal Year 1989 this calculation shall be made by
utilizing the calendar year 1987 to determine the tax amounts
received. For the State Fiscal Year 1990, this calculation
shall be made by utilizing the period from January 1, 1988,
until September 30, 1988, to determine the tax amounts
received from retailers and servicemen, which shall have
deducted therefrom nine-twelfths of the certified Initial
Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the
Revised Initial Sales Tax Amounts as appropriate. For the
State Fiscal Year 1991, this calculation shall be made by
utilizing the period from October 1, 1988, until June 30,
1989, to determine the tax amounts received from retailers and
servicemen, which shall have deducted therefrom nine-twelfths
of the certified Initial State Sales Tax Amounts, Adjusted
Initial Sales Tax Amounts or the Revised Initial Sales Tax
Amounts as appropriate. For every State Fiscal Year
thereafter, the applicable period shall be the 12 months
beginning July 1 and ending on June 30, to determine the tax
amounts received which shall have deducted therefrom the
certified Initial Sales Tax Amounts, Adjusted Initial Sales
Tax Amounts or the Revised Initial Sales Tax Amounts.

SB4200 - 408 - LRB104 21786 TRT 37479 b
Municipalities intending to receive a distribution of State
Sales Tax Increment must report a list of retailers to the
Department of Revenue by October 31, 1988 and by July 31, of
each year thereafter.
(t) "Taxing districts" means counties, townships, cities
and incorporated towns and villages, school, road, park,
sanitary, mosquito abatement, forest preserve, public health,
fire protection, river conservancy, tuberculosis sanitarium
and any other municipal corporations or districts with the
power to levy taxes.
(u) "Taxing districts' capital costs" means those costs of
taxing districts for capital improvements that are found by
the municipal corporate authorities to be necessary and
directly result from the redevelopment project.
(v) As used in subsection (a) of Section 11-74.4-3 of this
Act, "vacant land" means any parcel or combination of parcels
of real property without industrial, commercial, and
residential buildings which has not been used for commercial
agricultural purposes within 5 years prior to the designation
of the redevelopment project area, unless the parcel is
included in an industrial park conservation area or the parcel
has been subdivided; provided that if the parcel was part of a
larger tract that has been divided into 3 or more smaller
tracts that were accepted for recording during the period from
1950 to 1990, then the parcel shall be deemed to have been
subdivided, and all proceedings and actions of the

SB4200 - 409 - LRB104 21786 TRT 37479 b
municipality taken in that connection with respect to any
previously approved or designated redevelopment project area
or amended redevelopment project area are hereby validated and
hereby declared to be legally sufficient for all purposes of
this Act. For purposes of this Section and only for land
subject to the subdivision requirements of the Plat Act, land
is subdivided when the original plat of the proposed
Redevelopment Project Area or relevant portion thereof has
been properly certified, acknowledged, approved, and recorded
or filed in accordance with the Plat Act and a preliminary
plat, if any, for any subsequent phases of the proposed
Redevelopment Project Area or relevant portion thereof has
been properly approved and filed in accordance with the
applicable ordinance of the municipality.
(w) "Annual Total Increment" means the sum of each
municipality's annual Net Sales Tax Increment and each
municipality's annual Net Utility Tax Increment. The ratio of
the Annual Total Increment of each municipality to the Annual
Total Increment for all municipalities, as most recently
calculated by the Department, shall determine the proportional
shares of the Illinois Tax Increment Fund to be distributed to
each municipality.
(x) "LEED certified" means any certification level of
construction elements by a qualified Leadership in Energy and
Environmental Design Accredited Professional as determined by
the U.S. Green Building Council.

SB4200 - 410 - LRB104 21786 TRT 37479 b
(y) "Green Globes certified" means any certification level
of construction elements by a qualified Green Globes
Professional as determined by the Green Building Initiative.
(Source: P.A. 102-627, eff. 8-27-21.)
(Text of Section after amendment by P.A. 104-457)
Sec. 11-74.4-3. Definitions. The following terms, wherever
used or referred to in this Division 74.4 shall have the
following respective meanings, unless in any case a different
meaning clearly appears from the context.
(a) For any redevelopment project area that has been
designated pursuant to this Section by an ordinance adopted
prior to November 1, 1999 (the effective date of Public Act
91-478), "blighted area" shall have the meaning set forth in
this Section prior to that date.
On and after November 1, 1999, "blighted area" means any
improved or vacant area within the boundaries of a
redevelopment project area located within the territorial
limits of the municipality where:
(1) If improved, industrial, commercial, and
residential buildings or improvements are detrimental to
the public safety, health, or welfare because of a
combination of 5 or more of the following factors, each of
which is (i) present, with that presence documented, to a
meaningful extent so that a municipality may reasonably
find that the factor is clearly present within the intent

SB4200 - 411 - LRB104 21786 TRT 37479 b
of the Act and (ii) reasonably distributed throughout the
improved part of the redevelopment project area:
(A) Dilapidation. An advanced state of disrepair
or neglect of necessary repairs to the primary
structural components of buildings or improvements in
such a combination that a documented building
condition analysis determines that major repair is
required or the defects are so serious and so
extensive that the buildings must be removed.
(B) Obsolescence. The condition or process of
falling into disuse. Structures have become ill-suited
for the original use.
(C) Deterioration. With respect to buildings,
defects including, but not limited to, major defects
in the secondary building components such as doors,
windows, porches, gutters and downspouts, and fascia.
With respect to surface improvements, that the
condition of roadways, alleys, curbs, gutters,
sidewalks, off-street parking, and surface storage
areas evidence deterioration, including, but not
limited to, surface cracking, crumbling, potholes,
depressions, loose paving material, and weeds
protruding through paved surfaces.
(D) Presence of structures below minimum code
standards. All structures that do not meet the
standards of zoning, subdivision, building, fire, and

SB4200 - 412 - LRB104 21786 TRT 37479 b
other governmental codes applicable to property, but
not including housing and property maintenance codes.
(E) Illegal use of individual structures. The use
of structures in violation of applicable federal,
State, or local laws, exclusive of those applicable to
the presence of structures below minimum code
standards.
(F) Excessive vacancies. The presence of buildings
that are unoccupied or under-utilized and that
represent an adverse influence on the area because of
the frequency, extent, or duration of the vacancies.
(G) Lack of ventilation, light, or sanitary
facilities. The absence of adequate ventilation for
light or air circulation in spaces or rooms without
windows, or that require the removal of dust, odor,
gas, smoke, or other noxious airborne materials.
Inadequate natural light and ventilation means the
absence of skylights or windows for interior spaces or
rooms and improper window sizes and amounts by room
area to window area ratios. Inadequate sanitary
facilities refers to the absence or inadequacy of
garbage storage and enclosure, bathroom facilities,
hot water and kitchens, and structural inadequacies
preventing ingress and egress to and from all rooms
and units within a building.
(H) Inadequate utilities. Underground and overhead

SB4200 - 413 - LRB104 21786 TRT 37479 b
utilities such as storm sewers and storm drainage,
sanitary sewers, water lines, and gas, telephone, and
electrical services that are shown to be inadequate.
Inadequate utilities are those that are: (i) of
insufficient capacity to serve the uses in the
redevelopment project area, (ii) deteriorated,
antiquated, obsolete, or in disrepair, or (iii)
lacking within the redevelopment project area.
(I) Excessive land coverage and overcrowding of
structures and community facilities. The
over-intensive use of property and the crowding of
buildings and accessory facilities onto a site.
Examples of problem conditions warranting the
designation of an area as one exhibiting excessive
land coverage are: (i) the presence of buildings
either improperly situated on parcels or located on
parcels of inadequate size and shape in relation to
present-day standards of development for health and
safety and (ii) the presence of multiple buildings on
a single parcel. For there to be a finding of excessive
land coverage, these parcels must exhibit one or more
of the following conditions: insufficient provision
for light and air within or around buildings,
increased threat of spread of fire due to the close
proximity of buildings, lack of adequate or proper
access to a public right-of-way, lack of reasonably

SB4200 - 414 - LRB104 21786 TRT 37479 b
required off-street parking, or inadequate provision
for loading and service.
(J) Deleterious land use or layout. The existence
of incompatible land-use relationships, buildings
occupied by inappropriate mixed-uses, or uses
considered to be noxious, offensive, or unsuitable for
the surrounding area.
(K) Environmental clean-up. The proposed
redevelopment project area has incurred Illinois
Environmental Protection Agency or United States
Environmental Protection Agency remediation costs for,
or a study conducted by an independent consultant
recognized as having expertise in environmental
remediation has determined a need for, the clean-up of
hazardous waste, hazardous substances, or underground
storage tanks required by State or federal law,
provided that the remediation costs constitute a
material impediment to the development or
redevelopment of the redevelopment project area.
(L) Lack of community planning. The proposed
redevelopment project area was developed prior to or
without the benefit or guidance of a community plan.
This means that the development occurred prior to the
adoption by the municipality of a comprehensive or
other community plan or that the plan was not followed
at the time of the area's development. This factor

SB4200 - 415 - LRB104 21786 TRT 37479 b
must be documented by evidence of adverse or
incompatible land-use relationships, inadequate street
layout, improper subdivision, parcels of inadequate
shape and size to meet contemporary development
standards, or other evidence demonstrating an absence
of effective community planning.
(M) The total equalized assessed value of the
proposed redevelopment project area has declined for 3
of the last 5 calendar years prior to the year in which
the redevelopment project area is designated or is
increasing at an annual rate that is less than the
balance of the municipality for 3 of the last 5
calendar years for which information is available or
is increasing at an annual rate that is less than the
Consumer Price Index for All Urban Consumers published
by the United States Department of Labor or successor
agency for 3 of the last 5 calendar years prior to the
year in which the redevelopment project area is
designated.
(2) If vacant, the sound growth of the redevelopment
project area is impaired by a combination of 2 or more of
the following factors, each of which is (i) present, with
that presence documented, to a meaningful extent so that a
municipality may reasonably find that the factor is
clearly present within the intent of the Act and (ii)
reasonably distributed throughout the vacant part of the

SB4200 - 416 - LRB104 21786 TRT 37479 b
redevelopment project area to which it pertains:
(A) Obsolete platting of vacant land that results
in parcels of limited or narrow size or configurations
of parcels of irregular size or shape that would be
difficult to develop on a planned basis and in a manner
compatible with contemporary standards and
requirements, or platting that failed to create
rights-of-way for streets or alleys or that created
inadequate right-of-way widths for streets, alleys, or
other public rights-of-way or that omitted easements
for public utilities.
(B) Diversity of ownership of parcels of vacant
land sufficient in number to retard or impede the
ability to assemble the land for development.
(C) Tax and special assessment delinquencies exist
or the property has been the subject of tax sales under
the Property Tax Code within the last 5 years.
(D) Deterioration of structures or site
improvements in neighboring areas adjacent to the
vacant land.
(E) The area has incurred Illinois Environmental
Protection Agency or United States Environmental
Protection Agency remediation costs for, or a study
conducted by an independent consultant recognized as
having expertise in environmental remediation has
determined a need for, the clean-up of hazardous

SB4200 - 417 - LRB104 21786 TRT 37479 b
waste, hazardous substances, or underground storage
tanks required by State or federal law, provided that
the remediation costs constitute a material impediment
to the development or redevelopment of the
redevelopment project area.
(F) The total equalized assessed value of the
proposed redevelopment project area has declined for 3
of the last 5 calendar years prior to the year in which
the redevelopment project area is designated or is
increasing at an annual rate that is less than the
balance of the municipality for 3 of the last 5
calendar years for which information is available or
is increasing at an annual rate that is less than the
Consumer Price Index for All Urban Consumers published
by the United States Department of Labor or successor
agency for 3 of the last 5 calendar years prior to the
year in which the redevelopment project area is
designated.
(3) If vacant, the sound growth of the redevelopment
project area is impaired by one of the following factors
that (i) is present, with that presence documented, to a
meaningful extent so that a municipality may reasonably
find that the factor is clearly present within the intent
of the Act and (ii) is reasonably distributed throughout
the vacant part of the redevelopment project area to which
it pertains:

SB4200 - 418 - LRB104 21786 TRT 37479 b
(A) The area consists of one or more unused
quarries, mines, or strip mine ponds.
(B) The area consists of unused rail yards, rail
tracks, or railroad rights-of-way.
(C) The area, prior to its designation, is subject
to (i) chronic flooding that adversely impacts on real
property in the area as certified by a registered
professional engineer or appropriate regulatory agency
or (ii) surface water that discharges from all or a
part of the area and contributes to flooding within
the same watershed, but only if the redevelopment
project provides for facilities or improvements to
contribute to the alleviation of all or part of the
flooding.
(D) The area consists of an unused or illegal
disposal site containing earth, stone, building
debris, or similar materials that were removed from
construction, demolition, excavation, or dredge sites.
(E) Prior to November 1, 1999, the area is not less
than 50 nor more than 100 acres and 75% of which is
vacant (notwithstanding that the area has been used
for commercial agricultural purposes within 5 years
prior to the designation of the redevelopment project
area), and the area meets at least one of the factors
itemized in paragraph (1) of this subsection, the area
has been designated as a town or village center by

SB4200 - 419 - LRB104 21786 TRT 37479 b
ordinance or comprehensive plan adopted prior to
January 1, 1982, and the area has not been developed
for that designated purpose.
(F) The area qualified as a blighted improved area
immediately prior to becoming vacant, unless there has
been substantial private investment in the immediately
surrounding area.
(b) For any redevelopment project area that has been
designated pursuant to this Section by an ordinance adopted
prior to November 1, 1999 (the effective date of Public Act
91-478), "conservation area" shall have the meaning set forth
in this Section prior to that date.
On and after November 1, 1999, "conservation area" means
any improved area within the boundaries of a redevelopment
project area located within the territorial limits of the
municipality in which 50% or more of the structures in the area
have an age of 35 years or more. Such an area is not yet a
blighted area but because of a combination of 3 or more of the
following factors is detrimental to the public safety, health,
morals or welfare and such an area may become a blighted area:
(1) Dilapidation. An advanced state of disrepair or
neglect of necessary repairs to the primary structural
components of buildings or improvements in such a
combination that a documented building condition analysis
determines that major repair is required or the defects
are so serious and so extensive that the buildings must be

SB4200 - 420 - LRB104 21786 TRT 37479 b
removed.
(2) Obsolescence. The condition or process of falling
into disuse. Structures have become ill-suited for the
original use.
(3) Deterioration. With respect to buildings, defects
including, but not limited to, major defects in the
secondary building components such as doors, windows,
porches, gutters and downspouts, and fascia. With respect
to surface improvements, that the condition of roadways,
alleys, curbs, gutters, sidewalks, off-street parking, and
surface storage areas evidence deterioration, including,
but not limited to, surface cracking, crumbling, potholes,
depressions, loose paving material, and weeds protruding
through paved surfaces.
(4) Presence of structures below minimum code
standards. All structures that do not meet the standards
of zoning, subdivision, building, fire, and other
governmental codes applicable to property, but not
including housing and property maintenance codes.
(5) Illegal use of individual structures. The use of
structures in violation of applicable federal, State, or
local laws, exclusive of those applicable to the presence
of structures below minimum code standards.
(6) Excessive vacancies. The presence of buildings
that are unoccupied or under-utilized and that represent
an adverse influence on the area because of the frequency,

SB4200 - 421 - LRB104 21786 TRT 37479 b
extent, or duration of the vacancies.
(7) Lack of ventilation, light, or sanitary
facilities. The absence of adequate ventilation for light
or air circulation in spaces or rooms without windows, or
that require the removal of dust, odor, gas, smoke, or
other noxious airborne materials. Inadequate natural light
and ventilation means the absence or inadequacy of
skylights or windows for interior spaces or rooms and
improper window sizes and amounts by room area to window
area ratios. Inadequate sanitary facilities refers to the
absence or inadequacy of garbage storage and enclosure,
bathroom facilities, hot water and kitchens, and
structural inadequacies preventing ingress and egress to
and from all rooms and units within a building.
(8) Inadequate utilities. Underground and overhead
utilities such as storm sewers and storm drainage,
sanitary sewers, water lines, and gas, telephone, and
electrical services that are shown to be inadequate.
Inadequate utilities are those that are: (i) of
insufficient capacity to serve the uses in the
redevelopment project area, (ii) deteriorated, antiquated,
obsolete, or in disrepair, or (iii) lacking within the
redevelopment project area.
(9) Excessive land coverage and overcrowding of
structures and community facilities. The over-intensive
use of property and the crowding of buildings and

SB4200 - 422 - LRB104 21786 TRT 37479 b
accessory facilities onto a site. Examples of problem
conditions warranting the designation of an area as one
exhibiting excessive land coverage are: the presence of
buildings either improperly situated on parcels or located
on parcels of inadequate size and shape in relation to
present-day standards of development for health and safety
and the presence of multiple buildings on a single parcel.
For there to be a finding of excessive land coverage,
these parcels must exhibit one or more of the following
conditions: insufficient provision for light and air
within or around buildings, increased threat of spread of
fire due to the close proximity of buildings, lack of
adequate or proper access to a public right-of-way, lack
of reasonably required off-street parking, or inadequate
provision for loading and service.
(10) Deleterious land use or layout. The existence of
incompatible land-use relationships, buildings occupied by
inappropriate mixed-uses, or uses considered to be
noxious, offensive, or unsuitable for the surrounding
area.
(11) Lack of community planning. The proposed
redevelopment project area was developed prior to or
without the benefit or guidance of a community plan. This
means that the development occurred prior to the adoption
by the municipality of a comprehensive or other community
plan or that the plan was not followed at the time of the

SB4200 - 423 - LRB104 21786 TRT 37479 b
area's development. This factor must be documented by
evidence of adverse or incompatible land-use
relationships, inadequate street layout, improper
subdivision, parcels of inadequate shape and size to meet
contemporary development standards, or other evidence
demonstrating an absence of effective community planning.
(12) The area has incurred Illinois Environmental
Protection Agency or United States Environmental
Protection Agency remediation costs for, or a study
conducted by an independent consultant recognized as
having expertise in environmental remediation has
determined a need for, the clean-up of hazardous waste,
hazardous substances, or underground storage tanks
required by State or federal law, provided that the
remediation costs constitute a material impediment to the
development or redevelopment of the redevelopment project
area.
(13) The total equalized assessed value of the
proposed redevelopment project area has declined for 3 of
the last 5 calendar years for which information is
available or is increasing at an annual rate that is less
than the balance of the municipality for 3 of the last 5
calendar years for which information is available or is
increasing at an annual rate that is less than the
Consumer Price Index for All Urban Consumers published by
the United States Department of Labor or successor agency

SB4200 - 424 - LRB104 21786 TRT 37479 b
for 3 of the last 5 calendar years for which information is
available.
(c) "Industrial park" means an area in a blighted or
conservation area suitable for use by any manufacturing,
industrial, research or transportation enterprise, of
facilities to include but not be limited to factories, mills,
processing plants, assembly plants, packing plants,
fabricating plants, industrial distribution centers,
warehouses, repair overhaul or service facilities, freight
terminals, research facilities, test facilities or railroad
facilities.
(d) "Industrial park conservation area" means an area
within the boundaries of a redevelopment project area located
within the territorial limits of a municipality that is a
labor surplus municipality or within 1 1/2 miles of the
territorial limits of a municipality that is a labor surplus
municipality if the area is annexed to the municipality; which
area is zoned as industrial no later than at the time the
municipality by ordinance designates the redevelopment project
area, and which area includes both vacant land suitable for
use as an industrial park and a blighted area or conservation
area contiguous to such vacant land.
(e) "Labor surplus municipality" means a municipality in
which, at any time during the 6 months before the municipality
by ordinance designates an industrial park conservation area,
the unemployment rate was over 6% and was also 100% or more of

SB4200 - 425 - LRB104 21786 TRT 37479 b
the national average unemployment rate for that same time as
published in the United States Department of Labor Bureau of
Labor Statistics publication entitled "The Employment
Situation" or its successor publication. For the purpose of
this subsection, if unemployment rate statistics for the
municipality are not available, the unemployment rate in the
municipality shall be deemed to be the same as the
unemployment rate in the principal county in which the
municipality is located.
(f) "Municipality" shall mean a city, village,
incorporated town, or a township that is located in the
unincorporated portion of a county with 3 million or more
inhabitants, if the county adopted an ordinance that approved
the township's redevelopment plan.
(g) "Initial Sales Tax Amounts" means the amount of taxes
paid under the Retailers' Occupation Tax Act, Use Tax Act,
Service Use Tax Act, the Service Occupation Tax Act, the
Municipal Retailers' Occupation Tax Act, and the Municipal
Service Occupation Tax Act by retailers and servicemen on
transactions at places located in a State Sales Tax Boundary
during the calendar year 1985.
(g-1) "Revised Initial Sales Tax Amounts" means the amount
of taxes paid under the Retailers' Occupation Tax Act, Use Tax
Act, Service Use Tax Act, the Service Occupation Tax Act, the
Municipal Retailers' Occupation Tax Act, and the Municipal
Service Occupation Tax Act by retailers and servicemen on

SB4200 - 426 - LRB104 21786 TRT 37479 b
transactions at places located within the State Sales Tax
Boundary revised pursuant to Section 11-74.4-8a(9) of this
Act.
(h) "Municipal Sales Tax Increment" means an amount equal
to the increase in the aggregate amount of taxes paid to a
municipality from the Local Government Tax Fund arising from
sales by retailers and servicemen within the redevelopment
project area or State Sales Tax Boundary, as the case may be,
for as long as the redevelopment project area or State Sales
Tax Boundary, as the case may be, exist over and above the
aggregate amount of taxes as certified by the Illinois
Department of Revenue and paid under the Municipal Retailers'
Occupation Tax Act and the Municipal Service Occupation Tax
Act by retailers and servicemen, on transactions at places of
business located in the redevelopment project area or State
Sales Tax Boundary, as the case may be, during the base year
which shall be the calendar year immediately prior to the year
in which the municipality adopted tax increment allocation
financing. For purposes of computing the aggregate amount of
such taxes for base years occurring prior to 1985, the
Department of Revenue shall determine the Initial Sales Tax
Amounts for such taxes and deduct therefrom an amount equal to
4% of the aggregate amount of taxes per year for each year the
base year is prior to 1985, but not to exceed a total deduction
of 12%. The amount so determined shall be known as the
"Adjusted Initial Sales Tax Amounts". For purposes of

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determining the Municipal Sales Tax Increment, the Department
of Revenue shall for each period subtract from the amount paid
to the municipality from the Local Government Tax Fund arising
from sales by retailers and servicemen on transactions located
in the redevelopment project area or the State Sales Tax
Boundary, as the case may be, the certified Initial Sales Tax
Amounts, the Adjusted Initial Sales Tax Amounts or the Revised
Initial Sales Tax Amounts for the Municipal Retailers'
Occupation Tax Act and the Municipal Service Occupation Tax
Act. For the State Fiscal Year 1989, this calculation shall be
made by utilizing the calendar year 1987 to determine the tax
amounts received. For the State Fiscal Year 1990, this
calculation shall be made by utilizing the period from January
1, 1988, until September 30, 1988, to determine the tax
amounts received from retailers and servicemen pursuant to the
Municipal Retailers' Occupation Tax and the Municipal Service
Occupation Tax Act, which shall have deducted therefrom
nine-twelfths of the certified Initial Sales Tax Amounts, the
Adjusted Initial Sales Tax Amounts or the Revised Initial
Sales Tax Amounts as appropriate. For the State Fiscal Year
1991, this calculation shall be made by utilizing the period
from October 1, 1988, to June 30, 1989, to determine the tax
amounts received from retailers and servicemen pursuant to the
Municipal Retailers' Occupation Tax and the Municipal Service
Occupation Tax Act which shall have deducted therefrom
nine-twelfths of the certified Initial Sales Tax Amounts,

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Adjusted Initial Sales Tax Amounts or the Revised Initial
Sales Tax Amounts as appropriate. For every State Fiscal Year
thereafter, the applicable period shall be the 12 months
beginning July 1 and ending June 30 to determine the tax
amounts received which shall have deducted therefrom the
certified Initial Sales Tax Amounts, the Adjusted Initial
Sales Tax Amounts or the Revised Initial Sales Tax Amounts, as
the case may be.
(i) "Net State Sales Tax Increment" means the sum of the
following: (a) 80% of the first $100,000 of State Sales Tax
Increment annually generated within a State Sales Tax
Boundary; (b) 60% of the amount in excess of $100,000 but not
exceeding $500,000 of State Sales Tax Increment annually
generated within a State Sales Tax Boundary; and (c) 40% of all
amounts in excess of $500,000 of State Sales Tax Increment
annually generated within a State Sales Tax Boundary. If,
however, a municipality established a tax increment financing
district in a county with a population in excess of 3,000,000
before January 1, 1986, and the municipality entered into a
contract or issued bonds after January 1, 1986, but before
December 31, 1986, to finance redevelopment project costs
within a State Sales Tax Boundary, then the Net State Sales Tax
Increment means, for the fiscal years beginning July 1, 1990,
and July 1, 1991, 100% of the State Sales Tax Increment
annually generated within a State Sales Tax Boundary; and
notwithstanding any other provision of this Act, for those

SB4200 - 429 - LRB104 21786 TRT 37479 b
fiscal years the Department of Revenue shall distribute to
those municipalities 100% of their Net State Sales Tax
Increment before any distribution to any other municipality
and regardless of whether or not those other municipalities
will receive 100% of their Net State Sales Tax Increment. For
Fiscal Year 1999, and every year thereafter until the year
2007, for any municipality that has not entered into a
contract or has not issued bonds prior to June 1, 1988 to
finance redevelopment project costs within a State Sales Tax
Boundary, the Net State Sales Tax Increment shall be
calculated as follows: By multiplying the Net State Sales Tax
Increment by 90% in the State Fiscal Year 1999; 80% in the
State Fiscal Year 2000; 70% in the State Fiscal Year 2001; 60%
in the State Fiscal Year 2002; 50% in the State Fiscal Year
2003; 40% in the State Fiscal Year 2004; 30% in the State
Fiscal Year 2005; 20% in the State Fiscal Year 2006; and 10% in
the State Fiscal Year 2007. No payment shall be made for State
Fiscal Year 2008 and thereafter.
Municipalities that issued bonds in connection with a
redevelopment project in a redevelopment project area within
the State Sales Tax Boundary prior to July 29, 1991, or that
entered into contracts in connection with a redevelopment
project in a redevelopment project area before June 1, 1988,
shall continue to receive their proportional share of the
Illinois Tax Increment Fund distribution until the date on
which the redevelopment project is completed or terminated.

SB4200 - 430 - LRB104 21786 TRT 37479 b
If, however, a municipality that issued bonds in connection
with a redevelopment project in a redevelopment project area
within the State Sales Tax Boundary prior to July 29, 1991
retires the bonds prior to June 30, 2007 or a municipality that
entered into contracts in connection with a redevelopment
project in a redevelopment project area before June 1, 1988
completes the contracts prior to June 30, 2007, then so long as
the redevelopment project is not completed or is not
terminated, the Net State Sales Tax Increment shall be
calculated, beginning on the date on which the bonds are
retired or the contracts are completed, as follows: By
multiplying the Net State Sales Tax Increment by 60% in the
State Fiscal Year 2002; 50% in the State Fiscal Year 2003; 40%
in the State Fiscal Year 2004; 30% in the State Fiscal Year
2005; 20% in the State Fiscal Year 2006; and 10% in the State
Fiscal Year 2007. No payment shall be made for State Fiscal
Year 2008 and thereafter. Refunding of any bonds issued prior
to July 29, 1991, shall not alter the Net State Sales Tax
Increment.
(j) "State Utility Tax Increment Amount" means an amount
equal to the aggregate increase in State electric and gas tax
charges imposed on owners and tenants, other than residential
customers, of properties located within the redevelopment
project area under Section 9-222 of the Public Utilities Act,
over and above the aggregate of such charges as certified by
the Department of Revenue and paid by owners and tenants,

SB4200 - 431 - LRB104 21786 TRT 37479 b
other than residential customers, of properties within the
redevelopment project area during the base year, which shall
be the calendar year immediately prior to the year of the
adoption of the ordinance authorizing tax increment allocation
financing.
(k) "Net State Utility Tax Increment" means the sum of the
following: (a) 80% of the first $100,000 of State Utility Tax
Increment annually generated by a redevelopment project area;
(b) 60% of the amount in excess of $100,000 but not exceeding
$500,000 of the State Utility Tax Increment annually generated
by a redevelopment project area; and (c) 40% of all amounts in
excess of $500,000 of State Utility Tax Increment annually
generated by a redevelopment project area. For the State
Fiscal Year 1999, and every year thereafter until the year
2007, for any municipality that has not entered into a
contract or has not issued bonds prior to June 1, 1988 to
finance redevelopment project costs within a redevelopment
project area, the Net State Utility Tax Increment shall be
calculated as follows: By multiplying the Net State Utility
Tax Increment by 90% in the State Fiscal Year 1999; 80% in the
State Fiscal Year 2000; 70% in the State Fiscal Year 2001; 60%
in the State Fiscal Year 2002; 50% in the State Fiscal Year
2003; 40% in the State Fiscal Year 2004; 30% in the State
Fiscal Year 2005; 20% in the State Fiscal Year 2006; and 10% in
the State Fiscal Year 2007. No payment shall be made for the
State Fiscal Year 2008 and thereafter.

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Municipalities that issue bonds in connection with the
redevelopment project during the period from June 1, 1988
until 3 years after the effective date of this Amendatory Act
of 1988 shall receive the Net State Utility Tax Increment,
subject to appropriation, for 15 State Fiscal Years after the
issuance of such bonds. For the 16th through the 20th State
Fiscal Years after issuance of the bonds, the Net State
Utility Tax Increment shall be calculated as follows: By
multiplying the Net State Utility Tax Increment by 90% in year
16; 80% in year 17; 70% in year 18; 60% in year 19; and 50% in
year 20. Refunding of any bonds issued prior to June 1, 1988,
shall not alter the revised Net State Utility Tax Increment
payments set forth above.
(l) "Obligations" mean bonds, loans, debentures, notes,
special certificates or other evidence of indebtedness issued
by the municipality to carry out a redevelopment project or to
refund outstanding obligations.
(m) "Payment in lieu of taxes" means those estimated tax
revenues from real property in a redevelopment project area
derived from real property that has been acquired by a
municipality which according to the redevelopment project or
plan is to be used for a private use which taxing districts
would have received had a municipality not acquired the real
property and adopted tax increment allocation financing and
which would result from levies made after the time of the
adoption of tax increment allocation financing to the time the

SB4200 - 433 - LRB104 21786 TRT 37479 b
current equalized value of real property in the redevelopment
project area exceeds the total initial equalized value of real
property in said area.
(n) "Redevelopment plan" means the comprehensive program
of the municipality for development or redevelopment intended
by the payment of redevelopment project costs to reduce or
eliminate those conditions the existence of which qualified
the redevelopment project area as a "blighted area" or
"conservation area" or combination thereof or "industrial park
conservation area," and thereby to enhance the tax bases of
the taxing districts which extend into the redevelopment
project area, provided that, with respect to redevelopment
project areas described in subsections (p-1) and (p-2),
"redevelopment plan" means the comprehensive program of the
affected municipality for the development of qualifying
transit facilities. On and after November 1, 1999 (the
effective date of Public Act 91-478), no redevelopment plan
may be approved or amended that includes the development of
vacant land (i) with a golf course and related clubhouse and
other facilities or (ii) designated by federal, State, county,
or municipal government as public land for outdoor
recreational activities or for nature preserves and used for
that purpose within 5 years prior to the adoption of the
redevelopment plan. For the purpose of this subsection,
"recreational activities" is limited to mean camping and
hunting. Each redevelopment plan shall set forth in writing

SB4200 - 434 - LRB104 21786 TRT 37479 b
the program to be undertaken to accomplish the objectives and
shall include but not be limited to:
(A) an itemized list of estimated redevelopment
project costs;
(B) evidence indicating that the redevelopment project
area on the whole has not been subject to growth and
development through investment by private enterprise,
provided that such evidence shall not be required for any
redevelopment project area located within a transit
facility improvement area established pursuant to Section
11-74.4-3.3;
(C) an assessment of any financial impact of the
redevelopment project area on or any increased demand for
services from any taxing district affected by the plan and
any program to address such financial impact or increased
demand;
(D) the sources of funds to pay costs;
(E) the nature and term of the obligations to be
issued;
(F) the most recent equalized assessed valuation of
the redevelopment project area;
(G) an estimate as to the equalized assessed valuation
after redevelopment and the general land uses to apply in
the redevelopment project area;
(H) a commitment to fair employment practices and an
affirmative action plan;

SB4200 - 435 - LRB104 21786 TRT 37479 b
(I) if it concerns an industrial park conservation
area, the plan shall also include a general description of
any proposed developer, user and tenant of any property, a
description of the type, structure and general character
of the facilities to be developed, a description of the
type, class and number of new employees to be employed in
the operation of the facilities to be developed; and
(J) if property is to be annexed to the municipality,
the plan shall include the terms of the annexation
agreement.
The provisions of items (B) and (C) of this subsection (n)
shall not apply to a municipality that before March 14, 1994
(the effective date of Public Act 88-537) had fixed, either by
its corporate authorities or by a commission designated under
subsection (k) of Section 11-74.4-4, a time and place for a
public hearing as required by subsection (a) of Section
11-74.4-5. No redevelopment plan shall be adopted unless a
municipality complies with all of the following requirements:
(1) The municipality finds that the redevelopment
project area on the whole has not been subject to growth
and development through investment by private enterprise
and would not reasonably be anticipated to be developed
without the adoption of the redevelopment plan, provided,
however, that such a finding shall not be required with
respect to any redevelopment project area located within a
transit facility improvement area established pursuant to

SB4200 - 436 - LRB104 21786 TRT 37479 b
Section 11-74.4-3.3.
(2) The municipality finds that the redevelopment plan
and project conform to the comprehensive plan for the
development of the municipality as a whole, or, for
municipalities with a population of 100,000 or more,
regardless of when the redevelopment plan and project was
adopted, the redevelopment plan and project either: (i)
conforms to the strategic economic development or
redevelopment plan issued by the designated planning
authority of the municipality, or (ii) includes land uses
that have been approved by the planning commission of the
municipality.
(3) The redevelopment plan establishes the estimated
dates of completion of the redevelopment project and
retirement of obligations issued to finance redevelopment
project costs. Those dates may not be later than the dates
set forth under Section 11-74.4-3.5.
A municipality may by municipal ordinance amend an
existing redevelopment plan to conform to this paragraph
(3) as amended by Public Act 91-478, which municipal
ordinance may be adopted without further hearing or notice
and without complying with the procedures provided in this
Act pertaining to an amendment to or the initial approval
of a redevelopment plan and project and designation of a
redevelopment project area.
(3.5) The municipality finds, in the case of an

SB4200 - 437 - LRB104 21786 TRT 37479 b
industrial park conservation area, also that the
municipality is a labor surplus municipality and that the
implementation of the redevelopment plan will reduce
unemployment, create new jobs and by the provision of new
facilities enhance the tax base of the taxing districts
that extend into the redevelopment project area.
(4) If any incremental revenues are being utilized
under Section 8(a)(1) or 8(a)(2) of this Act in
redevelopment project areas approved by ordinance after
January 1, 1986, the municipality finds: (a) that the
redevelopment project area would not reasonably be
developed without the use of such incremental revenues,
and (b) that such incremental revenues will be exclusively
utilized for the development of the redevelopment project
area.
(5) If: (a) the redevelopment plan will not result in
displacement of residents from 10 or more inhabited
residential units, and the municipality certifies in the
plan that such displacement will not result from the plan;
or (b) the redevelopment plan is for a redevelopment
project area or a qualifying transit facility located
within a transit facility improvement area established
pursuant to Section 11-74.4-3.3, and the applicable
project is subject to the process for evaluation of
environmental effects under the National Environmental
Policy Act of 1969, 42 U.S.C. 4321 et seq., then a housing

SB4200 - 438 - LRB104 21786 TRT 37479 b
impact study need not be performed. If, however, the
redevelopment plan would result in the displacement of
residents from 10 or more inhabited residential units, or
if the redevelopment project area contains 75 or more
inhabited residential units and no certification is made,
then the municipality shall prepare, as part of the
separate feasibility report required by subsection (a) of
Section 11-74.4-5, a housing impact study.
Part I of the housing impact study shall include (i)
data as to whether the residential units are single family
or multi-family units, (ii) the number and type of rooms
within the units, if that information is available, (iii)
whether the units are inhabited or uninhabited, as
determined not less than 45 days before the date that the
ordinance or resolution required by subsection (a) of
Section 11-74.4-5 is passed, and (iv) data as to the
racial and ethnic composition of the residents in the
inhabited residential units. The data requirement as to
the racial and ethnic composition of the residents in the
inhabited residential units shall be deemed to be fully
satisfied by data from the most recent federal census.
Part II of the housing impact study shall identify the
inhabited residential units in the proposed redevelopment
project area that are to be or may be removed. If inhabited
residential units are to be removed, then the housing
impact study shall identify (i) the number and location of

SB4200 - 439 - LRB104 21786 TRT 37479 b
those units that will or may be removed, (ii) the
municipality's plans for relocation assistance for those
residents in the proposed redevelopment project area whose
residences are to be removed, (iii) the availability of
replacement housing for those residents whose residences
are to be removed, and shall identify the type, location,
and cost of the housing, and (iv) the type and extent of
relocation assistance to be provided.
(6) On and after November 1, 1999, the housing impact
study required by paragraph (5) shall be incorporated in
the redevelopment plan for the redevelopment project area.
(7) On and after November 1, 1999, no redevelopment
plan shall be adopted, nor an existing plan amended, nor
shall residential housing that is occupied by households
of low-income and very low-income persons in currently
existing redevelopment project areas be removed after
November 1, 1999 unless the redevelopment plan provides,
with respect to inhabited housing units that are to be
removed for households of low-income and very low-income
persons, affordable housing and relocation assistance not
less than that which would be provided under the federal
Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 and the regulations under
that Act, including the eligibility criteria. Affordable
housing may be either existing or newly constructed
housing. For purposes of this paragraph (7), "low-income

SB4200 - 440 - LRB104 21786 TRT 37479 b
households", "very low-income households", and "affordable
housing" have the meanings set forth in the Illinois
Affordable Housing Act. The municipality shall make a good
faith effort to ensure that this affordable housing is
located in or near the redevelopment project area within
the municipality.
(8) On and after November 1, 1999, if, after the
adoption of the redevelopment plan for the redevelopment
project area, any municipality desires to amend its
redevelopment plan to remove more inhabited residential
units than specified in its original redevelopment plan,
that change shall be made in accordance with the
procedures in subsection (c) of Section 11-74.4-5.
(9) For redevelopment project areas designated prior
to November 1, 1999, the redevelopment plan may be amended
without further joint review board meeting or hearing,
provided that the municipality shall give notice of any
such changes by mail to each affected taxing district and
registrant on the interested party registry, to authorize
the municipality to expend tax increment revenues for
redevelopment project costs defined by paragraphs (5) and
(7.5), subparagraphs (E) and (F) of paragraph (11), and
paragraph (11.5) of subsection (q) of Section 11-74.4-3,
so long as the changes do not increase the total estimated
redevelopment project costs set out in the redevelopment
plan by more than 5% after adjustment for inflation from

SB4200 - 441 - LRB104 21786 TRT 37479 b
the date the plan was adopted.
(o) "Redevelopment project" means any public and private
development project in furtherance of the objectives of a
redevelopment plan. On and after November 1, 1999 (the
effective date of Public Act 91-478), no redevelopment plan
may be approved or amended that includes the development of
vacant land (i) with a golf course and related clubhouse and
other facilities or (ii) designated by federal, State, county,
or municipal government as public land for outdoor
recreational activities or for nature preserves and used for
that purpose within 5 years prior to the adoption of the
redevelopment plan. For the purpose of this subsection,
"recreational activities" is limited to mean camping and
hunting.
(p) "Redevelopment project area" means an area designated
by the municipality, which is not less in the aggregate than 1
1/2 acres and in respect to which the municipality has made a
finding that there exist conditions which cause the area to be
classified as an industrial park conservation area or a
blighted area or a conservation area, or a combination of both
blighted areas and conservation areas.
(p-1) Notwithstanding any provision of this Act to the
contrary, on and after August 25, 2009 (the effective date of
Public Act 96-680), a redevelopment project area may include
areas within a one-half mile radius of an existing or proposed
Northern Illinois Transit Authority Suburban Transit Access

SB4200 - 442 - LRB104 21786 TRT 37479 b
Route (STAR Line) station without a finding that the area is
classified as an industrial park conservation area, a blighted
area, a conservation area, or a combination thereof, but only
if the municipality receives unanimous consent from the joint
review board created to review the proposed redevelopment
project area.
(p-2) Notwithstanding any provision of this Act to the
contrary, on and after the effective date of this amendatory
Act of the 99th General Assembly, a redevelopment project area
may include areas within a transit facility improvement area
that has been established pursuant to Section 11-74.4-3.3
without a finding that the area is classified as an industrial
park conservation area, a blighted area, a conservation area,
or any combination thereof.
(q) "Redevelopment project costs", except for
redevelopment project areas created pursuant to subsection
(p-1) or (p-2), means and includes the sum total of all
reasonable or necessary costs incurred or estimated to be
incurred, and any such costs incidental to a redevelopment
plan and a redevelopment project. Such costs include, without
limitation, the following:
(1) Costs of studies, surveys, development of plans,
and specifications, implementation and administration of
the redevelopment plan including but not limited to staff
and professional service costs for architectural,
engineering, legal, financial, planning or other services,

SB4200 - 443 - LRB104 21786 TRT 37479 b
provided however that no charges for professional services
may be based on a percentage of the tax increment
collected; except that on and after November 1, 1999 (the
effective date of Public Act 91-478), no contracts for
professional services, excluding architectural and
engineering services, may be entered into if the terms of
the contract extend beyond a period of 3 years. In
addition, "redevelopment project costs" shall not include
lobbying expenses. After consultation with the
municipality, each tax increment consultant or advisor to
a municipality that plans to designate or has designated a
redevelopment project area shall inform the municipality
in writing of any contracts that the consultant or advisor
has entered into with entities or individuals that have
received, or are receiving, payments financed by tax
increment revenues produced by the redevelopment project
area with respect to which the consultant or advisor has
performed, or will be performing, service for the
municipality. This requirement shall be satisfied by the
consultant or advisor before the commencement of services
for the municipality and thereafter whenever any other
contracts with those individuals or entities are executed
by the consultant or advisor;
(1.5) After July 1, 1999, annual administrative costs
shall not include general overhead or administrative costs
of the municipality that would still have been incurred by

SB4200 - 444 - LRB104 21786 TRT 37479 b
the municipality if the municipality had not designated a
redevelopment project area or approved a redevelopment
plan;
(1.6) The cost of marketing sites within the
redevelopment project area to prospective businesses,
developers, and investors;
(2) Property assembly costs, including but not limited
to acquisition of land and other property, real or
personal, or rights or interests therein, demolition of
buildings, site preparation, site improvements that serve
as an engineered barrier addressing ground level or below
ground environmental contamination, including, but not
limited to parking lots and other concrete or asphalt
barriers, and the clearing and grading of land;
(3) Costs of rehabilitation, reconstruction or repair
or remodeling of existing public or private buildings,
fixtures, and leasehold improvements; and the cost of
replacing an existing public building if pursuant to the
implementation of a redevelopment project the existing
public building is to be demolished to use the site for
private investment or devoted to a different use requiring
private investment; including any direct or indirect costs
relating to Green Globes or LEED certified construction
elements or construction elements with an equivalent
certification;
(4) Costs of the construction of public works or

SB4200 - 445 - LRB104 21786 TRT 37479 b
improvements, including any direct or indirect costs
relating to Green Globes or LEED certified construction
elements or construction elements with an equivalent
certification, except that on and after November 1, 1999,
redevelopment project costs shall not include the cost of
constructing a new municipal public building principally
used to provide offices, storage space, or conference
facilities or vehicle storage, maintenance, or repair for
administrative, public safety, or public works personnel
and that is not intended to replace an existing public
building as provided under paragraph (3) of subsection (q)
of Section 11-74.4-3 unless either (i) the construction of
the new municipal building implements a redevelopment
project that was included in a redevelopment plan that was
adopted by the municipality prior to November 1, 1999,
(ii) the municipality makes a reasonable determination in
the redevelopment plan, supported by information that
provides the basis for that determination, that the new
municipal building is required to meet an increase in the
need for public safety purposes anticipated to result from
the implementation of the redevelopment plan, or (iii) the
new municipal public building is for the storage,
maintenance, or repair of transit vehicles and is located
in a transit facility improvement area that has been
established pursuant to Section 11-74.4-3.3;
(5) Costs of job training and retraining projects,

SB4200 - 446 - LRB104 21786 TRT 37479 b
including the cost of "welfare to work" programs
implemented by businesses located within the redevelopment
project area;
(6) Financing costs, including but not limited to all
necessary and incidental expenses related to the issuance
of obligations and which may include payment of interest
on any obligations issued hereunder including interest
accruing during the estimated period of construction of
any redevelopment project for which such obligations are
issued and for not exceeding 36 months thereafter and
including reasonable reserves related thereto;
(7) To the extent the municipality by written
agreement accepts and approves the same, all or a portion
of a taxing district's capital costs resulting from the
redevelopment project necessarily incurred or to be
incurred within a taxing district in furtherance of the
objectives of the redevelopment plan and project;
(7.5) For redevelopment project areas designated (or
redevelopment project areas amended to add or increase the
number of tax-increment-financing assisted housing units)
on or after November 1, 1999, an elementary, secondary, or
unit school district's increased costs attributable to
assisted housing units located within the redevelopment
project area for which the developer or redeveloper
receives financial assistance through an agreement with
the municipality or because the municipality incurs the

SB4200 - 447 - LRB104 21786 TRT 37479 b
cost of necessary infrastructure improvements within the
boundaries of the assisted housing sites necessary for the
completion of that housing as authorized by this Act, and
which costs shall be paid by the municipality from the
Special Tax Allocation Fund when the tax increment revenue
is received as a result of the assisted housing units and
shall be calculated annually as follows:
(A) for foundation districts, excluding any school
district in a municipality with a population in excess
of 1,000,000, by multiplying the district's increase
in attendance resulting from the net increase in new
students enrolled in that school district who reside
in housing units within the redevelopment project area
that have received financial assistance through an
agreement with the municipality or because the
municipality incurs the cost of necessary
infrastructure improvements within the boundaries of
the housing sites necessary for the completion of that
housing as authorized by this Act since the
designation of the redevelopment project area by the
most recently available per capita tuition cost as
defined in Section 10-20.12a of the School Code less
any increase in general State aid as defined in
Section 18-8.05 of the School Code or evidence-based
funding as defined in Section 18-8.15 of the School
Code attributable to these added new students subject

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to the following annual limitations:
(i) for unit school districts with a district
average 1995-96 Per Capita Tuition Charge of less
than $5,900, no more than 25% of the total amount
of property tax increment revenue produced by
those housing units that have received tax
increment finance assistance under this Act;
(ii) for elementary school districts with a
district average 1995-96 Per Capita Tuition Charge
of less than $5,900, no more than 17% of the total
amount of property tax increment revenue produced
by those housing units that have received tax
increment finance assistance under this Act; and
(iii) for secondary school districts with a
district average 1995-96 Per Capita Tuition Charge
of less than $5,900, no more than 8% of the total
amount of property tax increment revenue produced
by those housing units that have received tax
increment finance assistance under this Act.
(B) For alternate method districts, flat grant
districts, and foundation districts with a district
average 1995-96 Per Capita Tuition Charge equal to or
more than $5,900, excluding any school district with a
population in excess of 1,000,000, by multiplying the
district's increase in attendance resulting from the
net increase in new students enrolled in that school

SB4200 - 449 - LRB104 21786 TRT 37479 b
district who reside in housing units within the
redevelopment project area that have received
financial assistance through an agreement with the
municipality or because the municipality incurs the
cost of necessary infrastructure improvements within
the boundaries of the housing sites necessary for the
completion of that housing as authorized by this Act
since the designation of the redevelopment project
area by the most recently available per capita tuition
cost as defined in Section 10-20.12a of the School
Code less any increase in general state aid as defined
in Section 18-8.05 of the School Code or
evidence-based funding as defined in Section 18-8.15
of the School Code attributable to these added new
students subject to the following annual limitations:
(i) for unit school districts, no more than
40% of the total amount of property tax increment
revenue produced by those housing units that have
received tax increment finance assistance under
this Act;
(ii) for elementary school districts, no more
than 27% of the total amount of property tax
increment revenue produced by those housing units
that have received tax increment finance
assistance under this Act; and
(iii) for secondary school districts, no more

SB4200 - 450 - LRB104 21786 TRT 37479 b
than 13% of the total amount of property tax
increment revenue produced by those housing units
that have received tax increment finance
assistance under this Act.
(C) For any school district in a municipality with
a population in excess of 1,000,000, the following
restrictions shall apply to the reimbursement of
increased costs under this paragraph (7.5):
(i) no increased costs shall be reimbursed
unless the school district certifies that each of
the schools affected by the assisted housing
project is at or over its student capacity;
(ii) the amount reimbursable shall be reduced
by the value of any land donated to the school
district by the municipality or developer, and by
the value of any physical improvements made to the
schools by the municipality or developer; and
(iii) the amount reimbursed may not affect
amounts otherwise obligated by the terms of any
bonds, notes, or other funding instruments, or the
terms of any redevelopment agreement.
Any school district seeking payment under this
paragraph (7.5) shall, after July 1 and before
September 30 of each year, provide the municipality
with reasonable evidence to support its claim for
reimbursement before the municipality shall be

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required to approve or make the payment to the school
district. If the school district fails to provide the
information during this period in any year, it shall
forfeit any claim to reimbursement for that year.
School districts may adopt a resolution waiving the
right to all or a portion of the reimbursement
otherwise required by this paragraph (7.5). By
acceptance of this reimbursement the school district
waives the right to directly or indirectly set aside,
modify, or contest in any manner the establishment of
the redevelopment project area or projects;
(7.7) For redevelopment project areas designated (or
redevelopment project areas amended to add or increase the
number of tax-increment-financing assisted housing units)
on or after January 1, 2005 (the effective date of Public
Act 93-961), a public library district's increased costs
attributable to assisted housing units located within the
redevelopment project area for which the developer or
redeveloper receives financial assistance through an
agreement with the municipality or because the
municipality incurs the cost of necessary infrastructure
improvements within the boundaries of the assisted housing
sites necessary for the completion of that housing as
authorized by this Act shall be paid to the library
district by the municipality from the Special Tax
Allocation Fund when the tax increment revenue is received

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as a result of the assisted housing units. This paragraph
(7.7) applies only if (i) the library district is located
in a county that is subject to the Property Tax Extension
Limitation Law or (ii) the library district is not located
in a county that is subject to the Property Tax Extension
Limitation Law but the district is prohibited by any other
law from increasing its tax levy rate without a prior
voter referendum.
The amount paid to a library district under this
paragraph (7.7) shall be calculated by multiplying (i) the
net increase in the number of persons eligible to obtain a
library card in that district who reside in housing units
within the redevelopment project area that have received
financial assistance through an agreement with the
municipality or because the municipality incurs the cost
of necessary infrastructure improvements within the
boundaries of the housing sites necessary for the
completion of that housing as authorized by this Act since
the designation of the redevelopment project area by (ii)
the per-patron cost of providing library services so long
as it does not exceed $120. The per-patron cost shall be
the Total Operating Expenditures Per Capita for the
library in the previous fiscal year. The municipality may
deduct from the amount that it must pay to a library
district under this paragraph any amount that it has
voluntarily paid to the library district from the tax

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increment revenue. The amount paid to a library district
under this paragraph (7.7) shall be no more than 2% of the
amount produced by the assisted housing units and
deposited into the Special Tax Allocation Fund.
A library district is not eligible for any payment
under this paragraph (7.7) unless the library district has
experienced an increase in the number of patrons from the
municipality that created the tax-increment-financing
district since the designation of the redevelopment
project area.
Any library district seeking payment under this
paragraph (7.7) shall, after July 1 and before September
30 of each year, provide the municipality with convincing
evidence to support its claim for reimbursement before the
municipality shall be required to approve or make the
payment to the library district. If the library district
fails to provide the information during this period in any
year, it shall forfeit any claim to reimbursement for that
year. Library districts may adopt a resolution waiving the
right to all or a portion of the reimbursement otherwise
required by this paragraph (7.7). By acceptance of such
reimbursement, the library district shall forfeit any
right to directly or indirectly set aside, modify, or
contest in any manner whatsoever the establishment of the
redevelopment project area or projects;
(8) Relocation costs to the extent that a municipality

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determines that relocation costs shall be paid or is
required to make payment of relocation costs by federal or
State law or in order to satisfy subparagraph (7) of
subsection (n);
(9) Payment in lieu of taxes;
(10) Costs of job training, retraining, advanced
vocational education or career education, including but
not limited to courses in occupational, semi-technical or
technical fields leading directly to employment, incurred
by one or more taxing districts, provided that such costs
(i) are related to the establishment and maintenance of
additional job training, advanced vocational education or
career education programs for persons employed or to be
employed by employers located in a redevelopment project
area; and (ii) when incurred by a taxing district or
taxing districts other than the municipality, are set
forth in a written agreement by or among the municipality
and the taxing district or taxing districts, which
agreement describes the program to be undertaken,
including but not limited to the number of employees to be
trained, a description of the training and services to be
provided, the number and type of positions available or to
be available, itemized costs of the program and sources of
funds to pay for the same, and the term of the agreement.
Such costs include, specifically, the payment by community
college districts of costs pursuant to Sections 3-37,

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3-38, 3-40 and 3-40.1 of the Public Community College Act
and by school districts of costs pursuant to Sections
10-22.20a and 10-23.3a of the School Code;
(11) Interest cost incurred by a redeveloper related
to the construction, renovation or rehabilitation of a
redevelopment project provided that:
(A) such costs are to be paid directly from the
special tax allocation fund established pursuant to
this Act;
(B) such payments in any one year may not exceed
30% of the annual interest costs incurred by the
redeveloper with regard to the redevelopment project
during that year;
(C) if there are not sufficient funds available in
the special tax allocation fund to make the payment
pursuant to this paragraph (11) then the amounts so
due shall accrue and be payable when sufficient funds
are available in the special tax allocation fund;
(D) the total of such interest payments paid
pursuant to this Act may not exceed 30% of the total
(i) cost paid or incurred by the redeveloper for the
redevelopment project plus (ii) redevelopment project
costs excluding any property assembly costs and any
relocation costs incurred by a municipality pursuant
to this Act;
(E) the cost limits set forth in subparagraphs (B)

SB4200 - 456 - LRB104 21786 TRT 37479 b
and (D) of paragraph (11) shall be modified for the
financing of rehabilitated or new housing units for
low-income households and very low-income households,
as defined in Section 3 of the Illinois Affordable
Housing Act. The percentage of 75% shall be
substituted for 30% in subparagraphs (B) and (D) of
paragraph (11); and
(F) instead of the eligible costs provided by
subparagraphs (B) and (D) of paragraph (11), as
modified by this subparagraph, and notwithstanding any
other provisions of this Act to the contrary, the
municipality may pay from tax increment revenues up to
50% of the cost of construction of new housing units to
be occupied by low-income households and very
low-income households as defined in Section 3 of the
Illinois Affordable Housing Act. The cost of
construction of those units may be derived from the
proceeds of bonds issued by the municipality under
this Act or other constitutional or statutory
authority or from other sources of municipal revenue
that may be reimbursed from tax increment revenues or
the proceeds of bonds issued to finance the
construction of that housing.
The eligible costs provided under this
subparagraph (F) of paragraph (11) shall be an
eligible cost for the construction, renovation, and

SB4200 - 457 - LRB104 21786 TRT 37479 b
rehabilitation of all low and very low-income housing
units, as defined in Section 3 of the Illinois
Affordable Housing Act, within the redevelopment
project area. If the low and very low-income units are
part of a residential redevelopment project that
includes units not affordable to low and very
low-income households, only the low and very
low-income units shall be eligible for benefits under
this subparagraph (F) of paragraph (11). The standards
for maintaining the occupancy by low-income households
and very low-income households, as defined in Section
3 of the Illinois Affordable Housing Act, of those
units constructed with eligible costs made available
under the provisions of this subparagraph (F) of
paragraph (11) shall be established by guidelines
adopted by the municipality. The responsibility for
annually documenting the initial occupancy of the
units by low-income households and very low-income
households, as defined in Section 3 of the Illinois
Affordable Housing Act, shall be that of the then
current owner of the property. For ownership units,
the guidelines will provide, at a minimum, for a
reasonable recapture of funds, or other appropriate
methods designed to preserve the original
affordability of the ownership units. For rental
units, the guidelines will provide, at a minimum, for

SB4200 - 458 - LRB104 21786 TRT 37479 b
the affordability of rent to low and very low-income
households. As units become available, they shall be
rented to income-eligible tenants. The municipality
may modify these guidelines from time to time; the
guidelines, however, shall be in effect for as long as
tax increment revenue is being used to pay for costs
associated with the units or for the retirement of
bonds issued to finance the units or for the life of
the redevelopment project area, whichever is later;
(11.5) If the redevelopment project area is located
within a municipality with a population of more than
100,000, the cost of day care services for children of
employees from low-income families working for businesses
located within the redevelopment project area and all or a
portion of the cost of operation of day care centers
established by redevelopment project area businesses to
serve employees from low-income families working in
businesses located in the redevelopment project area. For
the purposes of this paragraph, "low-income families"
means families whose annual income does not exceed 80% of
the municipal, county, or regional median income, adjusted
for family size, as the annual income and municipal,
county, or regional median income are determined from time
to time by the United States Department of Housing and
Urban Development.
(12) Costs relating to the development of urban

SB4200 - 459 - LRB104 21786 TRT 37479 b
agricultural areas under Division 15.2 of the Illinois
Municipal Code.
(13) Costs relating to the construction or
rehabilitation of residential development housing units,
including the costs to offset infrastructure costs
necessary to enable housing developments and the costs to
promote the redevelopment of areas where market conditions
would not otherwise support residential investment.
Unless explicitly stated herein the cost of construction
of new privately owned buildings shall not be an eligible
redevelopment project cost.
After November 1, 1999 (the effective date of Public Act
91-478), none of the redevelopment project costs enumerated in
this subsection shall be eligible redevelopment project costs
if those costs would provide direct financial support to a
retail entity initiating operations in the redevelopment
project area while terminating operations at another Illinois
location within 10 miles of the redevelopment project area but
outside the boundaries of the redevelopment project area
municipality. For purposes of this paragraph, termination
means a closing of a retail operation that is directly related
to the opening of the same operation or like retail entity
owned or operated by more than 50% of the original ownership in
a redevelopment project area, but it does not mean closing an
operation for reasons beyond the control of the retail entity,
as documented by the retail entity, subject to a reasonable

SB4200 - 460 - LRB104 21786 TRT 37479 b
finding by the municipality that the current location
contained inadequate space, had become economically obsolete,
or was no longer a viable location for the retailer or
serviceman.
No cost shall be a redevelopment project cost in a
redevelopment project area if used to demolish, remove, or
substantially modify a historic resource, after August 26,
2008 (the effective date of Public Act 95-934), unless no
prudent and feasible alternative exists. "Historic resource"
for the purpose of this paragraph means (i) a place or
structure that is included or eligible for inclusion on the
National Register of Historic Places or (ii) a contributing
structure in a district on the National Register of Historic
Places. This paragraph does not apply to a place or structure
for which demolition, removal, or modification is subject to
review by the preservation agency of a Certified Local
Government designated as such by the National Park Service of
the United States Department of the Interior.
If a special service area has been established pursuant to
the Special Service Area Tax Act or Special Service Area Tax
Law, then any tax increment revenues derived from the tax
imposed pursuant to the Special Service Area Tax Act or
Special Service Area Tax Law may be used within the
redevelopment project area for the purposes permitted by that
Act or Law as well as the purposes permitted by this Act.
(q-1) For redevelopment project areas created pursuant to

SB4200 - 461 - LRB104 21786 TRT 37479 b
subsection (p-1), redevelopment project costs are limited to
those costs in paragraph (q) that are related to the existing
or proposed Northern Illinois Transit Authority Suburban
Transit Access Route (STAR Line) station.
(q-2) For a transit facility improvement area established
prior to, on, or after the effective date of this amendatory
Act of the 102nd General Assembly: (i) "redevelopment project
costs" means those costs described in subsection (q) that are
related to the construction, reconstruction, rehabilitation,
remodeling, or repair of any existing or proposed transit
facility, whether that facility is located within or outside
the boundaries of a redevelopment project area established
within that transit facility improvement area (and, to the
extent a redevelopment project cost is described in subsection
(q) as incurred or estimated to be incurred with respect to a
redevelopment project area, then it shall apply with respect
to such transit facility improvement area); and (ii) the
provisions of Section 11-74.4-8 regarding tax increment
allocation financing for a redevelopment project area located
in a transit facility improvement area shall apply only to the
lots, blocks, tracts and parcels of real property that are
located within the boundaries of that redevelopment project
area and not to the lots, blocks, tracts, and parcels of real
property that are located outside the boundaries of that
redevelopment project area.
(r) "State Sales Tax Boundary" means the redevelopment

SB4200 - 462 - LRB104 21786 TRT 37479 b
project area or the amended redevelopment project area
boundaries which are determined pursuant to subsection (9) of
Section 11-74.4-8a of this Act. The Department of Revenue
shall certify pursuant to subsection (9) of Section 11-74.4-8a
the appropriate boundaries eligible for the determination of
State Sales Tax Increment.
(s) "State Sales Tax Increment" means an amount equal to
the increase in the aggregate amount of taxes paid by
retailers and servicemen, other than retailers and servicemen
subject to the Public Utilities Act, on transactions at places
of business located within a State Sales Tax Boundary pursuant
to the Retailers' Occupation Tax Act, the Use Tax Act, the
Service Use Tax Act, and the Service Occupation Tax Act,
except such portion of such increase that is paid into the
State and Local Sales Tax Reform Fund, the Local Government
Distributive Fund, the Local Government Tax Fund and the
County and Mass Transit District Fund, for as long as State
participation exists, over and above the Initial Sales Tax
Amounts, Adjusted Initial Sales Tax Amounts or the Revised
Initial Sales Tax Amounts for such taxes as certified by the
Department of Revenue and paid under those Acts by retailers
and servicemen on transactions at places of business located
within the State Sales Tax Boundary during the base year which
shall be the calendar year immediately prior to the year in
which the municipality adopted tax increment allocation
financing, less 3.0% of such amounts generated under the

SB4200 - 463 - LRB104 21786 TRT 37479 b
Retailers' Occupation Tax Act, Use Tax Act and Service Use Tax
Act and the Service Occupation Tax Act, which sum shall be
appropriated to the Department of Revenue to cover its costs
of administering and enforcing this Section. For purposes of
computing the aggregate amount of such taxes for base years
occurring prior to 1985, the Department of Revenue shall
compute the Initial Sales Tax Amount for such taxes and deduct
therefrom an amount equal to 4% of the aggregate amount of
taxes per year for each year the base year is prior to 1985,
but not to exceed a total deduction of 12%. The amount so
determined shall be known as the "Adjusted Initial Sales Tax
Amount". For purposes of determining the State Sales Tax
Increment the Department of Revenue shall for each period
subtract from the tax amounts received from retailers and
servicemen on transactions located in the State Sales Tax
Boundary, the certified Initial Sales Tax Amounts, Adjusted
Initial Sales Tax Amounts or Revised Initial Sales Tax Amounts
for the Retailers' Occupation Tax Act, the Use Tax Act, the
Service Use Tax Act and the Service Occupation Tax Act. For the
State Fiscal Year 1989 this calculation shall be made by
utilizing the calendar year 1987 to determine the tax amounts
received. For the State Fiscal Year 1990, this calculation
shall be made by utilizing the period from January 1, 1988,
until September 30, 1988, to determine the tax amounts
received from retailers and servicemen, which shall have
deducted therefrom nine-twelfths of the certified Initial

SB4200 - 464 - LRB104 21786 TRT 37479 b
Sales Tax Amounts, Adjusted Initial Sales Tax Amounts or the
Revised Initial Sales Tax Amounts as appropriate. For the
State Fiscal Year 1991, this calculation shall be made by
utilizing the period from October 1, 1988, until June 30,
1989, to determine the tax amounts received from retailers and
servicemen, which shall have deducted therefrom nine-twelfths
of the certified Initial State Sales Tax Amounts, Adjusted
Initial Sales Tax Amounts or the Revised Initial Sales Tax
Amounts as appropriate. For every State Fiscal Year
thereafter, the applicable period shall be the 12 months
beginning July 1 and ending on June 30, to determine the tax
amounts received which shall have deducted therefrom the
certified Initial Sales Tax Amounts, Adjusted Initial Sales
Tax Amounts or the Revised Initial Sales Tax Amounts.
Municipalities intending to receive a distribution of State
Sales Tax Increment must report a list of retailers to the
Department of Revenue by October 31, 1988 and by July 31, of
each year thereafter.
(t) "Taxing districts" means counties, townships, cities
and incorporated towns and villages, school, road, park,
sanitary, mosquito abatement, forest preserve, public health,
fire protection, river conservancy, tuberculosis sanitarium
and any other municipal corporations or districts with the
power to levy taxes.
(u) "Taxing districts' capital costs" means those costs of
taxing districts for capital improvements that are found by

SB4200 - 465 - LRB104 21786 TRT 37479 b
the municipal corporate authorities to be necessary and
directly result from the redevelopment project.
(v) As used in subsection (a) of Section 11-74.4-3 of this
Act, "vacant land" means any parcel or combination of parcels
of real property without industrial, commercial, and
residential buildings which has not been used for commercial
agricultural purposes within 5 years prior to the designation
of the redevelopment project area, unless the parcel is
included in an industrial park conservation area or the parcel
has been subdivided; provided that if the parcel was part of a
larger tract that has been divided into 3 or more smaller
tracts that were accepted for recording during the period from
1950 to 1990, then the parcel shall be deemed to have been
subdivided, and all proceedings and actions of the
municipality taken in that connection with respect to any
previously approved or designated redevelopment project area
or amended redevelopment project area are hereby validated and
hereby declared to be legally sufficient for all purposes of
this Act. For purposes of this Section and only for land
subject to the subdivision requirements of the Plat Act, land
is subdivided when the original plat of the proposed
Redevelopment Project Area or relevant portion thereof has
been properly certified, acknowledged, approved, and recorded
or filed in accordance with the Plat Act and a preliminary
plat, if any, for any subsequent phases of the proposed
Redevelopment Project Area or relevant portion thereof has

SB4200 - 466 - LRB104 21786 TRT 37479 b
been properly approved and filed in accordance with the
applicable ordinance of the municipality.
(w) "Annual Total Increment" means the sum of each
municipality's annual Net Sales Tax Increment and each
municipality's annual Net Utility Tax Increment. The ratio of
the Annual Total Increment of each municipality to the Annual
Total Increment for all municipalities, as most recently
calculated by the Department, shall determine the proportional
shares of the Illinois Tax Increment Fund to be distributed to
each municipality.
(x) "LEED certified" means any certification level of
construction elements by a qualified Leadership in Energy and
Environmental Design Accredited Professional as determined by
the U.S. Green Building Council.
(y) "Green Globes certified" means any certification level
of construction elements by a qualified Green Globes
Professional as determined by the Green Building Initiative.
(Source: P.A. 104-457, eff. 6-1-26.)
Section 80. The Real Estate License Act of 2000 is amended
by changing Section 10-5 as follows:
(225 ILCS 454/10-5)
(Section scheduled to be repealed on January 1, 2030)
Sec. 10-5. Payment of compensation.
(a) No licensee shall pay compensation directly to a

SB4200 - 467 - LRB104 21786 TRT 37479 b
licensee sponsored by another sponsoring broker for the
performance of licensed activities. No licensee sponsored by a
broker may pay compensation to any licensee other than his or
her sponsoring broker for the performance of licensed
activities unless the licensee paying the compensation is a
principal to the transaction. However, a non-sponsoring broker
may pay compensation directly to a licensee sponsored by
another or a person who is not sponsored by a broker if the
payments are made pursuant to terms of an employment agreement
that was previously in place between a licensee and the
non-sponsoring broker, and the payments are for licensed
activity performed by that person while previously sponsored
by the now non-sponsoring broker.
(b) No licensee sponsored by a broker shall accept
compensation for the performance of activities under this Act
except from the broker by whom the licensee is sponsored,
except as provided in this Section.
(c) (Blank).
(d) One sponsoring broker may pay compensation directly to
another sponsoring broker for the performance of licensed
activities.
(e) Notwithstanding any other provision of this Act, a
sponsoring broker may pay compensation to a person currently
licensed under the Auction License Act who is in compliance
with and providing services under Section 5-32 of this Act.
(f) To protect consumers from excessive housing

SB4200 - 468 - LRB104 21786 TRT 37479 b
transaction costs in an effort to provide affordable housing,
the total aggregate commission charged in a residential real
estate transaction, whether payable by the buyer, seller, or
another party, is limited to a maximum 3% of the final sale
price, regardless of the number of agents or parties involved.
Any agreement or contract provision that attempts to waive or
circumvent this limitation is void as against public policy.
Any person injured or aggrieved by a violation of this
subsection may bring civil action against any person or entity
that directly or indirectly charged, received, or retained a
commission in excess of the limitations established under this
subsection, including, but not limited to, licensed real
estate brokers, managing brokers and brokerage firms. A
prevailing plaintiff may recover:
(1) actual damages;
(2) statutory damages of not less than 3 times the
amount unlawfully charged;
(3) punitive damages if appropriate under Illinois
law; and
(4) reasonable attorney's fees and costs.
(Source: P.A. 101-357, eff. 8-9-19.)
Section 85. The Common Interest Community Association Act
is amended by adding Section 1-95 as follows:
(765 ILCS 160/1-95 new)

SB4200 - 469 - LRB104 21786 TRT 37479 b
Sec. 1-95. Middle housing and fee limitations.
(a) As used in this Section:
"Accessory dwelling unit" means a residential living unit
that is located on a lot containing a single-family dwelling,
that provides independent living facilities for one or more
persons, including provisions for sleeping, eating, cooking,
and sanitation, on the same parcel of land as the principal
dwelling unit it accompanies, and that is either separated
from or attached to the primary dwelling unit.
"Area median income" means the median family income for
the area, as determined by the United States Department of
Housing and Urban Development, with adjustments for family
size.
"Middle housing" means small-scale, multiunit residential
housing types that are compatible with single-family
neighborhoods and accessible to households earning between 80%
and 140% of the area median income. "Middle housing" includes
duplexes, triplexes, fourplexes, and accessory dwelling units.
"Person" means any natural individual, firm, trust,
estate, partnership, association, joint-stock company, joint
venture, corporation, limited liability company, or a
receiver, trustee, guardian, or other representative appointed
by order of any court, the federal and State governments,
including State universities created by statute or any unit of
local government or other political subdivision of this State.
(b) A common interest community association may not

SB4200 - 470 - LRB104 21786 TRT 37479 b
unreasonably prohibit or restrict the construction or use of
an accessory dwelling unit or other middle housing authorized
under applicable law unless necessary to comply with
applicable building, fire, health, or safety codes, protect
structural integrity, or comply with other applicable law or
local ordinances.
(c) An association, board, manager, management company, or
other governing entity subject to this Act must comply with
the provisions limiting total upfront rental costs as provided
in the Landlord and Tenant Act with respect to fees, deposits,
charges, and other costs imposed as a condition of occupancy,
lease approval, tenancy, or transfer of possession of a
residential unit.
(d) Any provision of a declaration, bylaw, rule,
regulation, lease, or other governing document that conflicts
with this Section is void as against public policy.
Section 90. The Homeowners' Energy Policy Statement Act is
amended by adding Section 50 as follows:
(765 ILCS 165/50 new)
Sec. 50. Ensuring housing affordability.
(a) Nothing in this Act limits authority expressly granted
to a county under subsection (j) of Section 5-12025 of the
Counties Code to regulate or prohibit a solar energy system or
energy storage system through a documented planning process

SB4200 - 471 - LRB104 21786 TRT 37479 b
consistent with other applicable law.
(b) Nothing in this Act limits authority expressly granted
to a municipality under subsection (j) of Section 11-13-30 of
the Illinois Municipal Code to regulate or prohibit a solar
energy system or energy storage system through a documented
planning process consistent with other applicable law.
Section 95. The Condominium Property Act is amended by
adding Section 40 as follows:
(765 ILCS 605/40 new)
Sec. 40. Middle housing and fee limitations.
(a) As used in this Section:
"Accessory dwelling unit" means a residential living unit
that is located on a lot containing a single-family dwelling,
that provides independent living facilities for one or more
persons, including provisions for sleeping, eating, cooking,
and sanitation, on the same parcel of land as the principal
dwelling unit it accompanies, and that is either separated
from or attached to the primary dwelling unit.
"Area median income" means the median family income for
the area, as determined by the United States Department of
Housing and Urban Development, with adjustments for family
size.
"Middle housing" means small-scale, multiunit residential
housing types that are compatible with single-family

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neighborhoods and accessible to households earning between 80%
and 140% of the area median income. "Middle housing" includes
duplexes, triplexes, fourplexes, and accessory dwelling units.
"Person" means any natural individual, firm, trust,
estate, partnership, association, joint-stock company, joint
venture, corporation, limited liability company, or a
receiver, trustee, guardian, or other representative appointed
by order of any court, the federal and State governments,
including State universities created by statute or any unit of
local government or other political subdivision of this State.
(b) A condominium association may not unreasonably
prohibit or restrict the construction or use of an accessory
dwelling unit or other middle housing authorized under
applicable law unless necessary to comply with applicable
building, fire, health, or safety codes, protect structural
integrity, or comply with other applicable law or local
ordinances.
(c) A condominium association, unit owners' association,
property management company, or other governing entity subject
to this Act must comply with the provisions limiting total
upfront rental costs as provided in the Landlord and Tenant
Act with respect to fees, deposits, charges, and other costs
imposed as a condition of occupancy, lease approval, tenancy,
or transfer of possession of a residential unit.
(d) Any provision of a declaration, bylaw, rule,
regulation, lease, or other governing document that conflicts

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with this Section is void as against public policy.
Section 100. The Landlord and Tenant Act is amended by
changing Section 30 and adding Section 35 as follows:
(765 ILCS 705/30)
Sec. 30. Reusable tenant screening report.
(a) Definitions. In this Section:
"Application screening fee" means a request by a landlord
for a fee to cover the costs of obtaining information about a
prospective tenant.
"Consumer report" has the same meaning as defined in
Section 1681a of Title 15 of the United States Code.
"Consumer credit reporting agency" means a person which,
for monetary fees, dues, or on a cooperative nonprofit basis,
regularly engages in whole or in part in the practice of
assembling or evaluating consumer credit information or other
information on consumers for the purpose of furnishing
consumer reports to third parties and that uses any means or
facility of interstate commerce for the purpose of preparing
or furnishing consumer reports.
"Reusable tenant screening report" means a written report,
prepared by a consumer credit reporting agency, that
prominently states the date through which the information
contained in the report is current and includes, but is not
limited to, all of the following information regarding a

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prospective tenant:
(A) the name of the prospective tenant;
(B) the contact information for the prospective
tenant;
(C) a verification of source of income of the
prospective tenant;
(D) the last known address of the prospective
tenant; and
(E) the results of an eviction history check of
the prospective tenant in a manner and for a period of
time consistent with applicable law related to the
consideration of eviction history in housing.
(b) Providing a reusable tenant screening report.
(1) If a prospective tenant provides a reusable tenant
screening report that meets the following criteria, the
landlord may not charge the prospective tenant a fee to
access the report or an application screening fee. Those
criteria include the following:
(A) the report was prepared within the previous 30
days by a consumer credit reporting agency at the
request and expense of a prospective tenant;
(B) the report is made directly available to a
landlord for use in the rental application process or
is provided through a third-party website that
regularly engages in the business of providing a
reusable tenant screening report and complies with all

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State and federal laws pertaining to use and
disclosure of information contained in a consumer
report by a consumer credit reporting agency;
(C) the report is available to the landlord at no
cost to access or use; and
(D) the report includes all of the criteria
consistently being used by the landlord in the
screening of prospective tenants.
(2) A landlord may require an applicant to state that
there has not been a material change to the information in
the reusable tenant screening report.
(3) Before requiring payment of an application fee, a
landlord must first notify a prospective tenant in writing
of the landlord's screening criteria and whether the
landlord accepts a reusable tenant screening report. If a
prospective tenant provides a reusable tenant screening
report that is available to the landlord at no cost to the
landlord and is not more than 30 days old, the landlord may
not charge an application fee or other screening-related
charge. Application fees charged by a landlord to a tenant
for a residential unit may not exceed actual screening
costs incurred by the landlord. A landlord may not charge
an application fee for a residential unit more than once
per applicant within a lease, rental, or occupancy period
for substantially similar units under the same ownership
or management. A landlord may not charge multiple or

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duplicative fees to a single applicant for substantially
similar purposes, including but not limited to
application, administrative, processing or screening fees,
whether labeled differently or charged separately. A
landlord who violates this paragraph (3) may be liable to
the aggrieved tenant or prospective tenant for full
repayment of excess charges; statutory damages of not less
than 3 times the amount unlawfully charged, punitive
damages if appropriate under Illinois law; and reasonable
attorney's fees and costs. Any provision of a lease or
other agreement that waives the protections of this
paragraph (3) shall be void as against public policy. This
paragraph (3) shall not be enforced by units of local
government unless otherwise authorized by law.
(c) If an ordinance, resolution, regulation,
administrative action, initiative, or other policy adopted by
a unit of local government or county conflicts with this Act,
the policy that provides greater protections to prospective
tenants applies.
(d) Nothing in this Section prohibits a landlord from
collecting and processing an application in addition to the
report provided, as long as the prospective tenant is not
charged an application screening fee for this additional
report.
(Source: P.A. 103-840, eff. 1-1-25; 104-417, eff. 8-15-25.)

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(765 ILCS 705/35 new)
Sec. 35. Limitation on total upfront rental costs.
(a) As used in this Section, "total upfront rental costs"
means all fees, charges, or costs imposed on tenants of a
residential unit, including requirements for security
deposits, damage deposits, move-in fees, move-out fees, and
any other unilateral upfront charges excluding the first
month's rent.
(b) The total upfront rental costs charged by any landlord
for a residential unit may not exceed one month's rent under
the initial term of the lease or other agreement between the
landlord and the tenant of the residential unit.
(c) A landlord who violates this Section may be liable to
the aggrieved tenant or prospective tenant for full repayment
of excess charges; statutory damages of not less than 3 times
the amount unlawfully charged; punitive damages if appropriate
under Illinois law; and reasonable attorney's fees and costs.
(d) Any provision of a lease or other agreement that
waives the protections of this Section shall be void as
against public policy.
(e) This Section shall not be enforced by units of local
government unless otherwise authorized by law.
Section 105. The Security Deposit Interest Act is amended
by adding Section 4 as follows:

SB4200 - 478 - LRB104 21786 TRT 37479 b
(765 ILCS 715/4 new)
Sec. 4. Limiting total upfront rental costs. A lessor
under this Act must comply with provisions limiting total
upfront rental costs as provided in the Landlord and Tenant
Act. Nothing in this Act authorizes a lessor to collect
deposits, fees, or charges in excess of the amounts permitted
under the Landlord and Tenant Act.
Section 110. The Prevailing Wage Act is amended by
changing Section 2 as follows:
(820 ILCS 130/2)
Sec. 2. This Act applies to the wages of laborers,
mechanics, and other workers employed in any public works, as
hereinafter defined, by any public body and to anyone under
contracts for public works. This includes any maintenance,
repair, assembly, or disassembly work performed on equipment
whether owned, leased, or rented.
As used in this Act, unless the context indicates
otherwise:
"Public works" means all fixed works constructed or
demolished by any public body, or paid for wholly or in part
out of public funds. "Public works" as defined herein includes
all projects financed in whole or in part with bonds, grants,
loans, or other funds made available by or through the State or
any of its political subdivisions, including, but not limited

SB4200 - 479 - LRB104 21786 TRT 37479 b
to: bonds issued under the Industrial Project Revenue Bond Act
(Article 11, Division 74 of the Illinois Municipal Code), the
Industrial Building Revenue Bond Act, the Illinois Finance
Authority Act, the Illinois Sports Facilities Authority Act,
or the Build Illinois Bond Act; loans or other funds made
available pursuant to the Build Illinois Act; loans or other
funds made available pursuant to the Riverfront Development
Fund under Section 10-15 of the River Edge Redevelopment Zone
Act; or funds from the Fund for Illinois' Future under Section
6z-47 of the State Finance Act, funds for school construction
under Section 5 of the General Obligation Bond Act, funds
authorized under Section 3 of the School Construction Bond
Act, funds for school infrastructure under Section 6z-45 of
the State Finance Act, and funds for transportation purposes
under Section 4 of the General Obligation Bond Act. "Public
works" also includes all federal construction projects
administered or controlled by a public body if the prevailing
rate of wages is equal to or greater than the prevailing wage
determination by the United States Secretary of Labor for the
same locality for the same type of construction used to
classify the federal construction project. "Public works" also
includes (i) all projects financed in whole or in part with
funds from the Environmental Protection Agency under the
Illinois Renewable Fuels Development Program Act for which
there is no project labor agreement; (ii) all work performed
pursuant to a public private agreement under the Public

SB4200 - 480 - LRB104 21786 TRT 37479 b
Private Agreements for the Illiana Expressway Act or the
Public-Private Agreements for the South Suburban Airport Act;
(iii) all projects undertaken under a public-private agreement
under the Public-Private Partnerships for Transportation Act
or the Department of Natural Resources World Shooting and
Recreational Complex Act; and (iv) all transportation
facilities undertaken under a design-build contract or a
Construction Manager/General Contractor contract under the
Innovations for Transportation Infrastructure Act. "Public
works" also includes all projects at leased facility property
used for airport purposes under Section 35 of the Local
Government Facility Lease Act. "Public works" also includes
the construction of a new wind power facility by a business
designated as a High Impact Business under Section
5.5(a)(3)(E) of the Illinois Enterprise Zone Act, the
construction of a new utility-scale solar power facility by a
business designated as a High Impact Business under Section
5.5(a)(3)(E-5) of the Illinois Enterprise Zone Act, the
construction of a new battery energy storage solution facility
by a business designated as a High Impact Business under
Section 5.5(a)(3)(I) of the Illinois Enterprise Zone Act, and
the construction of a high voltage direct current converter
station by a business designated as a High Impact Business
under Section 5.5(a)(3)(J) of the Illinois Enterprise Zone
Act. "Public works" also includes electric vehicle charging
station projects financed pursuant to the Electric Vehicle Act

SB4200 - 481 - LRB104 21786 TRT 37479 b
and renewable energy projects required to pay the prevailing
wage pursuant to the Illinois Power Agency Act. "Public works"
also includes power washing projects by a public body or paid
for wholly or in part out of public funds in which steam or
pressurized water, with or without added abrasives or
chemicals, is used to remove paint or other coatings, oils or
grease, corrosion, or debris from a surface or to prepare a
surface for a coating. "Public works" also includes all
electric transmission systems projects subject to the Electric
Transmission Systems Construction Standards Act. "Public
works" does not include work done directly by any public
utility company, whether or not done under public supervision
or direction, or paid for wholly or in part out of public
funds. "Public works" also includes construction projects
performed by a third party contracted by any public utility,
as described in subsection (a) of Section 2.1, in public
rights-of-way, as defined in Section 21-201 of the Public
Utilities Act, whether or not done under public supervision or
direction, or paid for wholly or in part out of public funds.
"Public works" also includes construction projects that exceed
15 aggregate miles of new fiber optic cable, performed by a
third party contracted by any public utility, as described in
subsection (b) of Section 2.1, in public rights-of-way, as
defined in Section 21-201 of the Public Utilities Act, whether
or not done under public supervision or direction, or paid for
wholly or in part out of public funds. "Public works" also

SB4200 - 482 - LRB104 21786 TRT 37479 b
includes any corrective action performed pursuant to Title XVI
of the Environmental Protection Act for which payment from the
Underground Storage Tank Fund is requested. "Public works"
also includes all construction projects involving fixtures or
permanent attachments affixed to light poles that are owned by
a public body, including street light poles, traffic light
poles, and other lighting fixtures, whether or not done under
public supervision or direction, or paid for wholly or in part
out of public funds, unless the project is performed by
employees employed directly by the public body. "Public works"
also includes work performed subject to the Mechanical
Insulation Energy and Safety Assessment Act. "Public works"
also includes the removal, hauling, and transportation of
biosolids, lime sludge, and lime residue from a water
treatment plant or facility and the disposal of biosolids,
lime sludge, and lime residue removed from a water treatment
plant or facility at a landfill. "Public works" also includes
sewer inspection projects that use a closed-circuit television
to identify issues in a sewer system, such as cracks in pipes,
root intrusion, blockages, or other structural damage. "Public
works" also includes construction work performed on
residential developments receiving benefits under Section
605-1121 of the Department of Commerce and Economic
Opportunity Law of the Civil Administrative Code of Illinois.
"Public works" does not include projects undertaken by the
owner at an owner-occupied single-family residence or at an

SB4200 - 483 - LRB104 21786 TRT 37479 b
owner-occupied unit of a multi-family residence. "Public
works" does not include work performed for soil and water
conservation purposes on agricultural lands, whether or not
done under public supervision or paid for wholly or in part out
of public funds, done directly by an owner or person who has
legal control of those lands.
"Construction" means all work on public works involving
laborers, workers or mechanics. This includes any maintenance,
repair, assembly, or disassembly work performed on equipment
whether owned, leased, or rented.
"Locality" means the county where the physical work upon
public works is performed, except (1) that if there is not
available in the county a sufficient number of competent
skilled laborers, workers and mechanics to construct the
public works efficiently and properly, "locality" includes any
other county nearest the one in which the work or construction
is to be performed and from which such persons may be obtained
in sufficient numbers to perform the work and (2) that, with
respect to contracts for highway work with the Department of
Transportation of this State, "locality" may at the discretion
of the Secretary of the Department of Transportation be
construed to include two or more adjacent counties from which
workers may be accessible for work on such construction.
"Public body" means the State or any officer, board or
commission of the State or any political subdivision or
department thereof, or any institution supported in whole or

SB4200 - 484 - LRB104 21786 TRT 37479 b
in part by public funds, and includes every county, city,
town, village, township, school district, irrigation, utility,
reclamation improvement or other district and every other
political subdivision, district or municipality of the state
whether such political subdivision, municipality or district
operates under a special charter or not.
"Labor organization" means an organization that is the
exclusive representative of an employer's employees recognized
or certified pursuant to the National Labor Relations Act.
The terms "general prevailing rate of hourly wages",
"general prevailing rate of wages" or "prevailing rate of
wages" when used in this Act mean the hourly cash wages plus
full journeyman annualized fringe benefits for training and
apprenticeship programs registered with the Office of
Apprenticeship within the U.S. Department of Labor's
Employment and Training Administration with full journeymen
annualized fringe benefits for health and welfare, insurance,
vacations, and pensions paid generally, in the locality in
which the work is being performed, to employees engaged in
work of a similar character on public works.
(Source: P.A. 103-8, eff. 6-7-23; 103-327, eff. 1-1-24;
103-346, eff. 1-1-24; 103-359, eff. 7-28-23; 103-447, eff.
8-4-23; 103-605, eff. 7-1-24; 103-1066, eff. 2-20-25; 104-17,
eff. 7-1-26 (see Section 35-5 of P.A. 104-434 for effective
date of P.A. 104-17); 104-23, eff. 6-30-25; 104-160, eff.
8-14-25; revised 12-2-25.)

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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.
Section 999. Effective date. This Act takes effect January
1, 2028.
SB4200 - 486 - LRB104 21786 TRT 37479 b
INDEX
Statutes amended in order of appearance
20 ILCS 605/605-1119 new
20 ILCS 605/605-1120 new
20 ILCS 605/605-1121 new
20 ILCS 605/605-1122 new
20 ILCS 1505/1505-230 new
20 ILCS 2505/2505-810
20 ILCS 2505/2505-817 new
20 ILCS 3805/7.24i new
20 ILCS 3805/8.2 new
30 ILCS 105/5.1038 new
30 ILCS 105/5.1039 new
30 ILCS 105/6z-149 new
30 ILCS 105/6z-150 new
30 ILCS 115/2 from Ch. 85, par. 612
35 ILCS 105/3-10 from Ch. 120, par. 439.33-10
35 ILCS 105/9
35 ILCS 105/12 from Ch. 120, par. 439.12
35 ILCS 110/3-10
35 ILCS 110/9
35 ILCS 110/12 from Ch. 120, par. 439.42
35 ILCS 115/3-10
35 ILCS 115/9 from Ch. 120, par. 439.109
35 ILCS 115/12 from Ch. 120, par. 439.112
SB4200 - 487 - LRB104 21786 TRT 37479 b
35 ILCS 120/2-10 from Ch. 120, par. 441-10
35 ILCS 120/3
35 ILCS 120/5o new
35 ILCS 200/31-35
50 ILCS 825/Act rep.
55 ILCS 5/5-2008 new
55 ILCS 5/5-12025 new
65 ILCS 5/8-11-25 new
65 ILCS 5/11-13-30 new
65 ILCS 5/11-15.5-10
65 ILCS 5/11-74.4-3 from Ch. 24, par. 11-74.4-3
225 ILCS 454/10-5
765 ILCS 160/1-95 new
765 ILCS 165/50 new
765 ILCS 605/40 new
765 ILCS 705/30
765 ILCS 705/35 new
765 ILCS 715/4 new
820 ILCS 130/2