Sen. Celina Villanueva
Filed: 5/25/2024
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| 1 | AMENDMENT TO HOUSE BILL 4951 | ||||||
| 2 | AMENDMENT NO. ______. Amend House Bill 4951, AS AMENDED, | ||||||
| 3 | by replacing everything after the enacting clause with the | ||||||
| 4 | following:
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| 5 | "ARTICLE 5. | ||||||
| 6 | Section 5-5. The Department of Revenue Law of the Civil | ||||||
| 7 | Administrative Code of Illinois is amended by adding Section | ||||||
| 8 | 2505-815 as follows:
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| 9 | (20 ILCS 2505/2505-815 new) | ||||||
| 10 | Sec. 2505-815. County Official Compensation Task Force. | ||||||
| 11 | (a) The County Official Compensation Task Force is created | ||||||
| 12 | to review the compensation of county-level officials as | ||||||
| 13 | provided for in various State statutes and to make | ||||||
| 14 | recommendations to the General Assembly on any appropriate | ||||||
| 15 | changes to those statutes, including implementation dates. | ||||||
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| 1 | (b) The members of the Task Force shall be as follows: | ||||||
| 2 | (1) the Director of Revenue or the Director's | ||||||
| 3 | designee, who shall serve as the chair of the Task Force; | ||||||
| 4 | (2) two representatives from a statewide organization | ||||||
| 5 | that represents chief county assessment officers, with one | ||||||
| 6 | representative from a county with a 2020 population of | ||||||
| 7 | fewer than 25,000 persons and one representative from a | ||||||
| 8 | county with a 2020 population of 25,000 or more, to be | ||||||
| 9 | appointed by the Director of Revenue; | ||||||
| 10 | (3) two representatives from a statewide organization | ||||||
| 11 | that represents county auditors, with one representative | ||||||
| 12 | from a county with a 2020 population of fewer than 25,000 | ||||||
| 13 | persons and one representative from a county with a 2020 | ||||||
| 14 | population of 25,000 or more, to be appointed by the | ||||||
| 15 | Director of Revenue; | ||||||
| 16 | (4) two representatives from a statewide organization | ||||||
| 17 | that represents county clerks and recorders, with one | ||||||
| 18 | representative from a county with a 2020 population of | ||||||
| 19 | fewer than 25,000 persons and one representative from a | ||||||
| 20 | county with a 2020 population of 25,000 or more, to be | ||||||
| 21 | appointed by the Director of Revenue; | ||||||
| 22 | (5) two representatives from a statewide organization | ||||||
| 23 | that represents circuit clerks, with one representative | ||||||
| 24 | from a county with a 2020 population of fewer than 25,000 | ||||||
| 25 | persons and one representative from a county with a 2020 | ||||||
| 26 | population of 25,000 or more, to be appointed by the Chief | ||||||
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| 1 | Justice of the Supreme Court; | ||||||
| 2 | (6) two representatives from a statewide organization | ||||||
| 3 | that represents county treasurers, with one representative | ||||||
| 4 | from a county with a 2020 population of fewer than 25,000 | ||||||
| 5 | persons and one representative from a county with a 2020 | ||||||
| 6 | population of 25,000 or more, to be appointed by the | ||||||
| 7 | Director of Revenue; | ||||||
| 8 | (7) four representatives from a statewide organization | ||||||
| 9 | that represents county board members, with 2 | ||||||
| 10 | representatives from counties with a 2020 population of | ||||||
| 11 | fewer than 25,000 persons and 2 representatives from | ||||||
| 12 | counties with a 2020 population of 25,000 or more, to be | ||||||
| 13 | appointed by the Governor; and | ||||||
| 14 | (8) four members from the General Assembly, with one | ||||||
| 15 | member appointed by the President of the Senate, one | ||||||
| 16 | member appointed by the Senate Minority Leader, one member | ||||||
| 17 | appointed by the Speaker of the House of Representatives, | ||||||
| 18 | and one member appointed by the House Minority Leader. | ||||||
| 19 | (c) The Department of Revenue shall provide administrative | ||||||
| 20 | and other support to the Task Force. | ||||||
| 21 | (d) The Task Force's review shall include, but is not | ||||||
| 22 | limited to, the following subjects: | ||||||
| 23 | (1) a review and comparison of current statutory | ||||||
| 24 | provisions and requirements for compensation of | ||||||
| 25 | county-level officials; | ||||||
| 26 | (2) the proportion of salary and related costs borne | ||||||
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| 1 | by State government compared to local government; | ||||||
| 2 | (3) job duties, education requirements, and other | ||||||
| 3 | requirements of those serving as county-level officials; | ||||||
| 4 | and | ||||||
| 5 | (4) current compensation levels for county-level | ||||||
| 6 | officials as compared to comparable positions in | ||||||
| 7 | non-governmental positions and comparable positions in | ||||||
| 8 | other levels of government. | ||||||
| 9 | (e) On or before September 1, 2024, the Task Force members | ||||||
| 10 | shall be appointed. On or before February 1, 2025, the Task | ||||||
| 11 | Force shall prepare a status report that summarizes its work. | ||||||
| 12 | The Task Force shall also prepare a comprehensive report | ||||||
| 13 | either (i) on or before May 1, 2025 or (ii) on or before | ||||||
| 14 | December 31, 2025, if all appointments to the Task Force are | ||||||
| 15 | not made by September 1, 2024. The comprehensive report shall | ||||||
| 16 | summarize the Task Force's findings and make recommendations | ||||||
| 17 | on the implementation of changes to the compensation of chief | ||||||
| 18 | county assessment officers, county auditors, county clerks and | ||||||
| 19 | recorders, county coroners, county treasurers, and circuit | ||||||
| 20 | clerks that will ensure compensation is competitive for | ||||||
| 21 | recruitment and retention and will ensure parity exists among | ||||||
| 22 | compensation levels within each profession, each county, and | ||||||
| 23 | across the State. | ||||||
| 24 | (f) The Task Force is dissolved on January 1, 2026.
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| 25 | ARTICLE 10. | ||||||
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| 1 | Section 10-1. Short title. This Act may be cited as the | ||||||
| 2 | Workforce Development through Charitable Loan Repayment Act. | ||||||
| 3 | References in this Article to "this Act" mean this Article.
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| 4 | Section 10-5. Purpose. The purpose of this Act is to | ||||||
| 5 | create a private sector incentive for qualified workers to | ||||||
| 6 | work and live in eligible areas while also reducing the | ||||||
| 7 | student debt burden of those workers.
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| 8 | Section 10-10. Definitions. As used in this Act: | ||||||
| 9 | "Commission" means the Illinois Student Assistance | ||||||
| 10 | Commission. | ||||||
| 11 | "Full-time employee" means an individual who is employed | ||||||
| 12 | for consideration for at least 35 hours each week. | ||||||
| 13 | "Program" means the Workforce Development Through | ||||||
| 14 | Charitable Loan Repayment Program established under this Act. | ||||||
| 15 | "Qualified community foundation" means a community | ||||||
| 16 | foundation or similar publicly supported organization | ||||||
| 17 | described in Section 170(b)(1)(A)(vi) of the Internal Revenue | ||||||
| 18 | Code of 1986 that (i) is organized or operating in this State, | ||||||
| 19 | (ii) substantially complies, as determined by the Commission, | ||||||
| 20 | with the national standards for United States community | ||||||
| 21 | foundations established by the Community Foundations National | ||||||
| 22 | Standards or a successor entity, and (iii) is approved by the | ||||||
| 23 | Commission for participation in the Program as provided in | ||||||
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| 1 | Section 10-17. | ||||||
| 2 | "Qualified worker" means an individual who meets all of | ||||||
| 3 | the following: | ||||||
| 4 | (1) the individual is a full-time employee of a | ||||||
| 5 | business that meets one or more of the following: | ||||||
| 6 | (A) the business is a qualified new business | ||||||
| 7 | venture that is registered with the Department of | ||||||
| 8 | Commerce and Economic Opportunity under Section 220 of | ||||||
| 9 | the Illinois Income Tax Act; | ||||||
| 10 | (B) the business is primarily engaged in a | ||||||
| 11 | targeted growth industry; | ||||||
| 12 | (C) the business is a minority-owned business, a | ||||||
| 13 | women-owned business, or a business owned by a person | ||||||
| 14 | with a disability, as those terms are defined in the | ||||||
| 15 | Business Enterprise for Minorities, Women, and Persons | ||||||
| 16 | with Disabilities Act; or | ||||||
| 17 | (D) the business is a not-for-profit corporation, | ||||||
| 18 | as defined in the General Not For Profit Corporation | ||||||
| 19 | Act of 1986; | ||||||
| 20 | (2) the individual is employed by the business | ||||||
| 21 | described in paragraph (1) at a job site that is located in | ||||||
| 22 | an Enterprise Zone, an Opportunity Zone, an underserved | ||||||
| 23 | area, or an area that has a bachelor's degree attainment | ||||||
| 24 | rate for the population that is below the State or | ||||||
| 25 | national average for the population, as determined by the | ||||||
| 26 | United States Census Bureau; and | ||||||
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| 1 | (3) the individual (i) received an associate degree or | ||||||
| 2 | higher and has an outstanding balance due on a qualified | ||||||
| 3 | education loan, as defined in Section 221 of the Internal | ||||||
| 4 | Revenue Code, or (ii) accrued educational debt while | ||||||
| 5 | pursuing skilled trades and related schooling. | ||||||
| 6 | "Student loan repayment assistance" means grants or | ||||||
| 7 | post-graduation scholarships made by a community foundation | ||||||
| 8 | directly to a student loan servicer on behalf of a qualified | ||||||
| 9 | worker. | ||||||
| 10 | "Targeted growth industry" means one or more of the | ||||||
| 11 | following: | ||||||
| 12 | (1) advanced manufacturing; | ||||||
| 13 | (2) agribusiness and food processing; | ||||||
| 14 | (3) transportation distribution and logistics; | ||||||
| 15 | (4) life sciences and biotechnology; | ||||||
| 16 | (5) business and professional services; or | ||||||
| 17 | (6) energy. | ||||||
| 18 | "Underserved area" has the meaning given to that term in | ||||||
| 19 | Section 5-5 of the Economic Development for a Growing Economy | ||||||
| 20 | Tax Credit Act.
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| 21 | Section 10-15. Establishment of the Program; | ||||||
| 22 | advertisement. The Workforce Development through Charitable | ||||||
| 23 | Loan Repayment Program is hereby created for the purpose of | ||||||
| 24 | facilitating student loan repayment assistance for qualified | ||||||
| 25 | workers. The Program shall be administered by qualified | ||||||
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| 1 | community foundations with the assistance of the Commission. | ||||||
| 2 | The Commission shall advertise the program on its website.
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| 3 | Section 10-17. Approval to participate in the Program. | ||||||
| 4 | (a) A qualified community foundation shall apply to the | ||||||
| 5 | Commission, in the form and manner prescribed by the | ||||||
| 6 | Commission, for eligibility to participate in the Program | ||||||
| 7 | under this Act. Each application shall include: | ||||||
| 8 | (1) documentary evidence that the qualified community | ||||||
| 9 | foundation meets the qualifications under Section | ||||||
| 10 | 170(b)(1)(A)(vi) of the Internal Revenue Code and | ||||||
| 11 | substantially complies with the standards established by | ||||||
| 12 | Community Foundations National Standards; | ||||||
| 13 | (2) a list of the names and addresses of all members of | ||||||
| 14 | the governing board of the qualified community foundation; | ||||||
| 15 | and | ||||||
| 16 | (3) a copy of the most recent financial audit of the | ||||||
| 17 | qualified community foundation's accounts and records | ||||||
| 18 | conducted by an independent certified public accountant in | ||||||
| 19 | accordance with auditing standards generally accepted in | ||||||
| 20 | the United States, government auditing standards, and | ||||||
| 21 | rules adopted by the Commission. | ||||||
| 22 | (b) The Commission shall review and either approve or deny | ||||||
| 23 | each application for participation. Applicants shall be | ||||||
| 24 | notified of the status of their application within a | ||||||
| 25 | reasonable amount of time after the completed application is | ||||||
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| 1 | received. | ||||||
| 2 | (c) The Commission may provide, by rule, that qualified | ||||||
| 3 | community foundations that are eligible to participate in tax | ||||||
| 4 | incentive programs administered by other State agencies are | ||||||
| 5 | automatically eligible to participate in the Program under | ||||||
| 6 | this Section.
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| 7 | Section 10-20. Applications. Each qualified community | ||||||
| 8 | foundation shall establish an application process for | ||||||
| 9 | qualified workers to receive student loan repayment assistance | ||||||
| 10 | from the qualified community foundation in accordance with | ||||||
| 11 | this Act and rules adopted for the implementation of this Act | ||||||
| 12 | by the Commission. If necessary due to limited funds, the | ||||||
| 13 | qualified community foundation shall give priority to | ||||||
| 14 | applicants with a higher student debt-to-income ratio when | ||||||
| 15 | awarding student loan repayment assistance under the Program.
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| 16 | Section 10-25. Eligibility; work requirement. Each | ||||||
| 17 | individual qualified community foundation shall certify the | ||||||
| 18 | eligibility of qualified workers to receive student loan | ||||||
| 19 | repayment assistance and establish work requirements in | ||||||
| 20 | accordance with this Act, rules adopted by the Commission, and | ||||||
| 21 | the requirements of the individual qualified community | ||||||
| 22 | foundation.
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| 23 | Section 10-30. Administration; rules. Qualified community | ||||||
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| 1 | foundations shall administer the Program under this Act and | ||||||
| 2 | shall issue to qualified workers any forms required by the | ||||||
| 3 | Commission or the Department of Revenue. The Commission shall | ||||||
| 4 | adopt rules for the Program's effective implementation, except | ||||||
| 5 | that rules regarding the documentation necessary to deduct | ||||||
| 6 | student loan repayment assistance from the worker's income | ||||||
| 7 | under subparagraph (LL) of subsection (a) of Section 203 of | ||||||
| 8 | the Illinois Income Tax Act may be adopted by the Department of | ||||||
| 9 | Revenue in consultation with the Commission. Individual | ||||||
| 10 | qualified community foundations may impose requirements for | ||||||
| 11 | participation in the Program, which shall not be inconsistent | ||||||
| 12 | with this Act or the rules adopted by the Commission or the | ||||||
| 13 | Department of Revenue in connection with this Act.
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| 14 | Section 10-35. Reporting. Each qualified community | ||||||
| 15 | foundation shall submit an annual report to the Commission | ||||||
| 16 | summarizing its loan repayment activity under the Program. | ||||||
| 17 | Reports under this Section shall be submitted in the form and | ||||||
| 18 | manner prescribed by the Commission.
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| 19 | Section 10-900. The Illinois Income Tax Act is amended by | ||||||
| 20 | changing Section 203 as follows:
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| 21 | (35 ILCS 5/203) | ||||||
| 22 | Sec. 203. Base income defined. | ||||||
| 23 | (a) Individuals. | ||||||
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| 1 | (1) In general. In the case of an individual, base | ||||||
| 2 | income means an amount equal to the taxpayer's adjusted | ||||||
| 3 | gross income for the taxable year as modified by paragraph | ||||||
| 4 | (2). | ||||||
| 5 | (2) Modifications. The adjusted gross income referred | ||||||
| 6 | to in paragraph (1) shall be modified by adding thereto | ||||||
| 7 | the sum of the following amounts: | ||||||
| 8 | (A) An amount equal to all amounts paid or accrued | ||||||
| 9 | to the taxpayer as interest or dividends during the | ||||||
| 10 | taxable year to the extent excluded from gross income | ||||||
| 11 | in the computation of adjusted gross income, except | ||||||
| 12 | stock dividends of qualified public utilities | ||||||
| 13 | described in Section 305(e) of the Internal Revenue | ||||||
| 14 | Code; | ||||||
| 15 | (B) An amount equal to the amount of tax imposed by | ||||||
| 16 | this Act to the extent deducted from gross income in | ||||||
| 17 | the computation of adjusted gross income for the | ||||||
| 18 | taxable year; | ||||||
| 19 | (C) An amount equal to the amount received during | ||||||
| 20 | the taxable year as a recovery or refund of real | ||||||
| 21 | property taxes paid with respect to the taxpayer's | ||||||
| 22 | principal residence under the Revenue Act of 1939 and | ||||||
| 23 | for which a deduction was previously taken under | ||||||
| 24 | subparagraph (L) of this paragraph (2) prior to July | ||||||
| 25 | 1, 1991, the retrospective application date of Article | ||||||
| 26 | 4 of Public Act 87-17. In the case of multi-unit or | ||||||
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| 1 | multi-use structures and farm dwellings, the taxes on | ||||||
| 2 | the taxpayer's principal residence shall be that | ||||||
| 3 | portion of the total taxes for the entire property | ||||||
| 4 | which is attributable to such principal residence; | ||||||
| 5 | (D) An amount equal to the amount of the capital | ||||||
| 6 | gain deduction allowable under the Internal Revenue | ||||||
| 7 | Code, to the extent deducted from gross income in the | ||||||
| 8 | computation of adjusted gross income; | ||||||
| 9 | (D-5) An amount, to the extent not included in | ||||||
| 10 | adjusted gross income, equal to the amount of money | ||||||
| 11 | withdrawn by the taxpayer in the taxable year from a | ||||||
| 12 | medical care savings account and the interest earned | ||||||
| 13 | on the account in the taxable year of a withdrawal | ||||||
| 14 | pursuant to subsection (b) of Section 20 of the | ||||||
| 15 | Medical Care Savings Account Act or subsection (b) of | ||||||
| 16 | Section 20 of the Medical Care Savings Account Act of | ||||||
| 17 | 2000; | ||||||
| 18 | (D-10) For taxable years ending after December 31, | ||||||
| 19 | 1997, an amount equal to any eligible remediation | ||||||
| 20 | costs that the individual deducted in computing | ||||||
| 21 | adjusted gross income and for which the individual | ||||||
| 22 | claims a credit under subsection (l) of Section 201; | ||||||
| 23 | (D-15) For taxable years 2001 and thereafter, an | ||||||
| 24 | amount equal to the bonus depreciation deduction taken | ||||||
| 25 | on the taxpayer's federal income tax return for the | ||||||
| 26 | taxable year under subsection (k) of Section 168 of | ||||||
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| 1 | the Internal Revenue Code; | ||||||
| 2 | (D-16) If the taxpayer sells, transfers, abandons, | ||||||
| 3 | or otherwise disposes of property for which the | ||||||
| 4 | taxpayer was required in any taxable year to make an | ||||||
| 5 | addition modification under subparagraph (D-15), then | ||||||
| 6 | an amount equal to the aggregate amount of the | ||||||
| 7 | deductions taken in all taxable years under | ||||||
| 8 | subparagraph (Z) with respect to that property. | ||||||
| 9 | If the taxpayer continues to own property through | ||||||
| 10 | the last day of the last tax year for which a | ||||||
| 11 | subtraction is allowed with respect to that property | ||||||
| 12 | under subparagraph (Z) and for which the taxpayer was | ||||||
| 13 | allowed in any taxable year to make a subtraction | ||||||
| 14 | modification under subparagraph (Z), then an amount | ||||||
| 15 | equal to that subtraction modification. | ||||||
| 16 | The taxpayer is required to make the addition | ||||||
| 17 | modification under this subparagraph only once with | ||||||
| 18 | respect to any one piece of property; | ||||||
| 19 | (D-17) An amount equal to the amount otherwise | ||||||
| 20 | allowed as a deduction in computing base income for | ||||||
| 21 | interest paid, accrued, or incurred, directly or | ||||||
| 22 | indirectly, (i) for taxable years ending on or after | ||||||
| 23 | December 31, 2004, to a foreign person who would be a | ||||||
| 24 | member of the same unitary business group but for the | ||||||
| 25 | fact that foreign person's business activity outside | ||||||
| 26 | the United States is 80% or more of the foreign | ||||||
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| 1 | person's total business activity and (ii) for taxable | ||||||
| 2 | years ending on or after December 31, 2008, to a person | ||||||
| 3 | who would be a member of the same unitary business | ||||||
| 4 | group but for the fact that the person is prohibited | ||||||
| 5 | under Section 1501(a)(27) from being included in the | ||||||
| 6 | unitary business group because he or she is ordinarily | ||||||
| 7 | required to apportion business income under different | ||||||
| 8 | subsections of Section 304. The addition modification | ||||||
| 9 | required by this subparagraph shall be reduced to the | ||||||
| 10 | extent that dividends were included in base income of | ||||||
| 11 | the unitary group for the same taxable year and | ||||||
| 12 | received by the taxpayer or by a member of the | ||||||
| 13 | taxpayer's unitary business group (including amounts | ||||||
| 14 | included in gross income under Sections 951 through | ||||||
| 15 | 964 of the Internal Revenue Code and amounts included | ||||||
| 16 | in gross income under Section 78 of the Internal | ||||||
| 17 | Revenue Code) with respect to the stock of the same | ||||||
| 18 | person to whom the interest was paid, accrued, or | ||||||
| 19 | incurred. | ||||||
| 20 | This paragraph shall not apply to the following: | ||||||
| 21 | (i) an item of interest paid, accrued, or | ||||||
| 22 | incurred, directly or indirectly, to a person who | ||||||
| 23 | is subject in a foreign country or state, other | ||||||
| 24 | than a state which requires mandatory unitary | ||||||
| 25 | reporting, to a tax on or measured by net income | ||||||
| 26 | with respect to such interest; or | ||||||
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| 1 | (ii) an item of interest paid, accrued, or | ||||||
| 2 | incurred, directly or indirectly, to a person if | ||||||
| 3 | the taxpayer can establish, based on a | ||||||
| 4 | preponderance of the evidence, both of the | ||||||
| 5 | following: | ||||||
| 6 | (a) the person, during the same taxable | ||||||
| 7 | year, paid, accrued, or incurred, the interest | ||||||
| 8 | to a person that is not a related member, and | ||||||
| 9 | (b) the transaction giving rise to the | ||||||
| 10 | interest expense between the taxpayer and the | ||||||
| 11 | person did not have as a principal purpose the | ||||||
| 12 | avoidance of Illinois income tax, and is paid | ||||||
| 13 | pursuant to a contract or agreement that | ||||||
| 14 | reflects an arm's-length interest rate and | ||||||
| 15 | terms; or | ||||||
| 16 | (iii) the taxpayer can establish, based on | ||||||
| 17 | clear and convincing evidence, that the interest | ||||||
| 18 | paid, accrued, or incurred relates to a contract | ||||||
| 19 | or agreement entered into at arm's-length rates | ||||||
| 20 | and terms and the principal purpose for the | ||||||
| 21 | payment is not federal or Illinois tax avoidance; | ||||||
| 22 | or | ||||||
| 23 | (iv) an item of interest paid, accrued, or | ||||||
| 24 | incurred, directly or indirectly, to a person if | ||||||
| 25 | the taxpayer establishes by clear and convincing | ||||||
| 26 | evidence that the adjustments are unreasonable; or | ||||||
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| 1 | if the taxpayer and the Director agree in writing | ||||||
| 2 | to the application or use of an alternative method | ||||||
| 3 | of apportionment under Section 304(f). | ||||||
| 4 | Nothing in this subsection shall preclude the | ||||||
| 5 | Director from making any other adjustment | ||||||
| 6 | otherwise allowed under Section 404 of this Act | ||||||
| 7 | for any tax year beginning after the effective | ||||||
| 8 | date of this amendment provided such adjustment is | ||||||
| 9 | made pursuant to regulation adopted by the | ||||||
| 10 | Department and such regulations provide methods | ||||||
| 11 | and standards by which the Department will utilize | ||||||
| 12 | its authority under Section 404 of this Act; | ||||||
| 13 | (D-18) An amount equal to the amount of intangible | ||||||
| 14 | expenses and costs otherwise allowed as a deduction in | ||||||
| 15 | computing base income, and that were paid, accrued, or | ||||||
| 16 | incurred, directly or indirectly, (i) for taxable | ||||||
| 17 | years ending on or after December 31, 2004, to a | ||||||
| 18 | foreign person who would be a member of the same | ||||||
| 19 | unitary business group but for the fact that the | ||||||
| 20 | foreign person's business activity outside the United | ||||||
| 21 | States is 80% or more of that person's total business | ||||||
| 22 | activity and (ii) for taxable years ending on or after | ||||||
| 23 | December 31, 2008, to a person who would be a member of | ||||||
| 24 | the same unitary business group but for the fact that | ||||||
| 25 | the person is prohibited under Section 1501(a)(27) | ||||||
| 26 | from being included in the unitary business group | ||||||
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| 1 | because he or she is ordinarily required to apportion | ||||||
| 2 | business income under different subsections of Section | ||||||
| 3 | 304. The addition modification required by this | ||||||
| 4 | subparagraph shall be reduced to the extent that | ||||||
| 5 | dividends were included in base income of the unitary | ||||||
| 6 | group for the same taxable year and received by the | ||||||
| 7 | taxpayer or by a member of the taxpayer's unitary | ||||||
| 8 | business group (including amounts included in gross | ||||||
| 9 | income under Sections 951 through 964 of the Internal | ||||||
| 10 | Revenue Code and amounts included in gross income | ||||||
| 11 | under Section 78 of the Internal Revenue Code) with | ||||||
| 12 | respect to the stock of the same person to whom the | ||||||
| 13 | intangible expenses and costs were directly or | ||||||
| 14 | indirectly paid, incurred, or accrued. The preceding | ||||||
| 15 | sentence does not apply to the extent that the same | ||||||
| 16 | dividends caused a reduction to the addition | ||||||
| 17 | modification required under Section 203(a)(2)(D-17) of | ||||||
| 18 | this Act. As used in this subparagraph, the term | ||||||
| 19 | "intangible expenses and costs" includes (1) expenses, | ||||||
| 20 | losses, and costs for, or related to, the direct or | ||||||
| 21 | indirect acquisition, use, maintenance or management, | ||||||
| 22 | ownership, sale, exchange, or any other disposition of | ||||||
| 23 | intangible property; (2) losses incurred, directly or | ||||||
| 24 | indirectly, from factoring transactions or discounting | ||||||
| 25 | transactions; (3) royalty, patent, technical, and | ||||||
| 26 | copyright fees; (4) licensing fees; and (5) other | ||||||
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| 1 | similar expenses and costs. For purposes of this | ||||||
| 2 | subparagraph, "intangible property" includes patents, | ||||||
| 3 | patent applications, trade names, trademarks, service | ||||||
| 4 | marks, copyrights, mask works, trade secrets, and | ||||||
| 5 | similar types of intangible assets. | ||||||
| 6 | This paragraph shall not apply to the following: | ||||||
| 7 | (i) any item of intangible expenses or costs | ||||||
| 8 | paid, accrued, or incurred, directly or | ||||||
| 9 | indirectly, from a transaction with a person who | ||||||
| 10 | is subject in a foreign country or state, other | ||||||
| 11 | than a state which requires mandatory unitary | ||||||
| 12 | reporting, to a tax on or measured by net income | ||||||
| 13 | with respect to such item; or | ||||||
| 14 | (ii) any item of intangible expense or cost | ||||||
| 15 | paid, accrued, or incurred, directly or | ||||||
| 16 | indirectly, if the taxpayer can establish, based | ||||||
| 17 | on a preponderance of the evidence, both of the | ||||||
| 18 | following: | ||||||
| 19 | (a) the person during the same taxable | ||||||
| 20 | year paid, accrued, or incurred, the | ||||||
| 21 | intangible expense or cost to a person that is | ||||||
| 22 | not a related member, and | ||||||
| 23 | (b) the transaction giving rise to the | ||||||
| 24 | intangible expense or cost between the | ||||||
| 25 | taxpayer and the person did not have as a | ||||||
| 26 | principal purpose the avoidance of Illinois | ||||||
| |||||||
| |||||||
| 1 | income tax, and is paid pursuant to a contract | ||||||
| 2 | or agreement that reflects arm's-length terms; | ||||||
| 3 | or | ||||||
| 4 | (iii) any item of intangible expense or cost | ||||||
| 5 | paid, accrued, or incurred, directly or | ||||||
| 6 | indirectly, from a transaction with a person if | ||||||
| 7 | the taxpayer establishes by clear and convincing | ||||||
| 8 | evidence, that the adjustments are unreasonable; | ||||||
| 9 | or if the taxpayer and the Director agree in | ||||||
| 10 | writing to the application or use of an | ||||||
| 11 | alternative method of apportionment under Section | ||||||
| 12 | 304(f); | ||||||
| 13 | Nothing in this subsection shall preclude the | ||||||
| 14 | Director from making any other adjustment | ||||||
| 15 | otherwise allowed under Section 404 of this Act | ||||||
| 16 | for any tax year beginning after the effective | ||||||
| 17 | date of this amendment provided such adjustment is | ||||||
| 18 | made pursuant to regulation adopted by the | ||||||
| 19 | Department and such regulations provide methods | ||||||
| 20 | and standards by which the Department will utilize | ||||||
| 21 | its authority under Section 404 of this Act; | ||||||
| 22 | (D-19) For taxable years ending on or after | ||||||
| 23 | December 31, 2008, an amount equal to the amount of | ||||||
| 24 | insurance premium expenses and costs otherwise allowed | ||||||
| 25 | as a deduction in computing base income, and that were | ||||||
| 26 | paid, accrued, or incurred, directly or indirectly, to | ||||||
| |||||||
| |||||||
| 1 | a person who would be a member of the same unitary | ||||||
| 2 | business group but for the fact that the person is | ||||||
| 3 | prohibited under Section 1501(a)(27) from being | ||||||
| 4 | included in the unitary business group because he or | ||||||
| 5 | she is ordinarily required to apportion business | ||||||
| 6 | income under different subsections of Section 304. The | ||||||
| 7 | addition modification required by this subparagraph | ||||||
| 8 | shall be reduced to the extent that dividends were | ||||||
| 9 | included in base income of the unitary group for the | ||||||
| 10 | same taxable year and received by the taxpayer or by a | ||||||
| 11 | member of the taxpayer's unitary business group | ||||||
| 12 | (including amounts included in gross income under | ||||||
| 13 | Sections 951 through 964 of the Internal Revenue Code | ||||||
| 14 | and amounts included in gross income under Section 78 | ||||||
| 15 | of the Internal Revenue Code) with respect to the | ||||||
| 16 | stock of the same person to whom the premiums and costs | ||||||
| 17 | were directly or indirectly paid, incurred, or | ||||||
| 18 | accrued. The preceding sentence does not apply to the | ||||||
| 19 | extent that the same dividends caused a reduction to | ||||||
| 20 | the addition modification required under Section | ||||||
| 21 | 203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this | ||||||
| 22 | Act; | ||||||
| 23 | (D-20) For taxable years beginning on or after | ||||||
| 24 | January 1, 2002 and ending on or before December 31, | ||||||
| 25 | 2006, in the case of a distribution from a qualified | ||||||
| 26 | tuition program under Section 529 of the Internal | ||||||
| |||||||
| |||||||
| 1 | Revenue Code, other than (i) a distribution from a | ||||||
| 2 | College Savings Pool created under Section 16.5 of the | ||||||
| 3 | State Treasurer Act or (ii) a distribution from the | ||||||
| 4 | Illinois Prepaid Tuition Trust Fund, an amount equal | ||||||
| 5 | to the amount excluded from gross income under Section | ||||||
| 6 | 529(c)(3)(B). For taxable years beginning on or after | ||||||
| 7 | January 1, 2007, in the case of a distribution from a | ||||||
| 8 | qualified tuition program under Section 529 of the | ||||||
| 9 | Internal Revenue Code, other than (i) a distribution | ||||||
| 10 | from a College Savings Pool created under Section 16.5 | ||||||
| 11 | of the State Treasurer Act, (ii) a distribution from | ||||||
| 12 | the Illinois Prepaid Tuition Trust Fund, or (iii) a | ||||||
| 13 | distribution from a qualified tuition program under | ||||||
| 14 | Section 529 of the Internal Revenue Code that (I) | ||||||
| 15 | adopts and determines that its offering materials | ||||||
| 16 | comply with the College Savings Plans Network's | ||||||
| 17 | disclosure principles and (II) has made reasonable | ||||||
| 18 | efforts to inform in-state residents of the existence | ||||||
| 19 | of in-state qualified tuition programs by informing | ||||||
| 20 | Illinois residents directly and, where applicable, to | ||||||
| 21 | inform financial intermediaries distributing the | ||||||
| 22 | program to inform in-state residents of the existence | ||||||
| 23 | of in-state qualified tuition programs at least | ||||||
| 24 | annually, an amount equal to the amount excluded from | ||||||
| 25 | gross income under Section 529(c)(3)(B). | ||||||
| 26 | For the purposes of this subparagraph (D-20), a | ||||||
| |||||||
| |||||||
| 1 | qualified tuition program has made reasonable efforts | ||||||
| 2 | if it makes disclosures (which may use the term | ||||||
| 3 | "in-state program" or "in-state plan" and need not | ||||||
| 4 | specifically refer to Illinois or its qualified | ||||||
| 5 | programs by name) (i) directly to prospective | ||||||
| 6 | participants in its offering materials or makes a | ||||||
| 7 | public disclosure, such as a website posting; and (ii) | ||||||
| 8 | where applicable, to intermediaries selling the | ||||||
| 9 | out-of-state program in the same manner that the | ||||||
| 10 | out-of-state program distributes its offering | ||||||
| 11 | materials; | ||||||
| 12 | (D-20.5) For taxable years beginning on or after | ||||||
| 13 | January 1, 2018, in the case of a distribution from a | ||||||
| 14 | qualified ABLE program under Section 529A of the | ||||||
| 15 | Internal Revenue Code, other than a distribution from | ||||||
| 16 | a qualified ABLE program created under Section 16.6 of | ||||||
| 17 | the State Treasurer Act, an amount equal to the amount | ||||||
| 18 | excluded from gross income under Section 529A(c)(1)(B) | ||||||
| 19 | of the Internal Revenue Code; | ||||||
| 20 | (D-21) For taxable years beginning on or after | ||||||
| 21 | January 1, 2007, in the case of transfer of moneys from | ||||||
| 22 | a qualified tuition program under Section 529 of the | ||||||
| 23 | Internal Revenue Code that is administered by the | ||||||
| 24 | State to an out-of-state program, an amount equal to | ||||||
| 25 | the amount of moneys previously deducted from base | ||||||
| 26 | income under subsection (a)(2)(Y) of this Section; | ||||||
| |||||||
| |||||||
| 1 | (D-21.5) For taxable years beginning on or after | ||||||
| 2 | January 1, 2018, in the case of the transfer of moneys | ||||||
| 3 | from a qualified tuition program under Section 529 or | ||||||
| 4 | a qualified ABLE program under Section 529A of the | ||||||
| 5 | Internal Revenue Code that is administered by this | ||||||
| 6 | State to an ABLE account established under an | ||||||
| 7 | out-of-state ABLE account program, an amount equal to | ||||||
| 8 | the contribution component of the transferred amount | ||||||
| 9 | that was previously deducted from base income under | ||||||
| 10 | subsection (a)(2)(Y) or subsection (a)(2)(HH) of this | ||||||
| 11 | Section; | ||||||
| 12 | (D-22) For taxable years beginning on or after | ||||||
| 13 | January 1, 2009, and prior to January 1, 2018, in the | ||||||
| 14 | case of a nonqualified withdrawal or refund of moneys | ||||||
| 15 | from a qualified tuition program under Section 529 of | ||||||
| 16 | the Internal Revenue Code administered by the State | ||||||
| 17 | that is not used for qualified expenses at an eligible | ||||||
| 18 | education institution, an amount equal to the | ||||||
| 19 | contribution component of the nonqualified withdrawal | ||||||
| 20 | or refund that was previously deducted from base | ||||||
| 21 | income under subsection (a)(2)(y) of this Section, | ||||||
| 22 | provided that the withdrawal or refund did not result | ||||||
| 23 | from the beneficiary's death or disability. For | ||||||
| 24 | taxable years beginning on or after January 1, 2018: | ||||||
| 25 | (1) in the case of a nonqualified withdrawal or | ||||||
| 26 | refund, as defined under Section 16.5 of the State | ||||||
| |||||||
| |||||||
| 1 | Treasurer Act, of moneys from a qualified tuition | ||||||
| 2 | program under Section 529 of the Internal Revenue Code | ||||||
| 3 | administered by the State, an amount equal to the | ||||||
| 4 | contribution component of the nonqualified withdrawal | ||||||
| 5 | or refund that was previously deducted from base | ||||||
| 6 | income under subsection (a)(2)(Y) of this Section, and | ||||||
| 7 | (2) in the case of a nonqualified withdrawal or refund | ||||||
| 8 | from a qualified ABLE program under Section 529A of | ||||||
| 9 | the Internal Revenue Code administered by the State | ||||||
| 10 | that is not used for qualified disability expenses, an | ||||||
| 11 | amount equal to the contribution component of the | ||||||
| 12 | nonqualified withdrawal or refund that was previously | ||||||
| 13 | deducted from base income under subsection (a)(2)(HH) | ||||||
| 14 | of this Section; | ||||||
| 15 | (D-23) An amount equal to the credit allowable to | ||||||
| 16 | the taxpayer under Section 218(a) of this Act, | ||||||
| 17 | determined without regard to Section 218(c) of this | ||||||
| 18 | Act; | ||||||
| 19 | (D-24) For taxable years ending on or after | ||||||
| 20 | December 31, 2017, an amount equal to the deduction | ||||||
| 21 | allowed under Section 199 of the Internal Revenue Code | ||||||
| 22 | for the taxable year; | ||||||
| 23 | (D-25) In the case of a resident, an amount equal | ||||||
| 24 | to the amount of tax for which a credit is allowed | ||||||
| 25 | pursuant to Section 201(p)(7) of this Act; | ||||||
| 26 | and by deducting from the total so obtained the sum of the | ||||||
| |||||||
| |||||||
| 1 | following amounts: | ||||||
| 2 | (E) For taxable years ending before December 31, | ||||||
| 3 | 2001, any amount included in such total in respect of | ||||||
| 4 | any compensation (including but not limited to any | ||||||
| 5 | compensation paid or accrued to a serviceman while a | ||||||
| 6 | prisoner of war or missing in action) paid to a | ||||||
| 7 | resident by reason of being on active duty in the Armed | ||||||
| 8 | Forces of the United States and in respect of any | ||||||
| 9 | compensation paid or accrued to a resident who as a | ||||||
| 10 | governmental employee was a prisoner of war or missing | ||||||
| 11 | in action, and in respect of any compensation paid to a | ||||||
| 12 | resident in 1971 or thereafter for annual training | ||||||
| 13 | performed pursuant to Sections 502 and 503, Title 32, | ||||||
| 14 | United States Code as a member of the Illinois | ||||||
| 15 | National Guard or, beginning with taxable years ending | ||||||
| 16 | on or after December 31, 2007, the National Guard of | ||||||
| 17 | any other state. For taxable years ending on or after | ||||||
| 18 | December 31, 2001, any amount included in such total | ||||||
| 19 | in respect of any compensation (including but not | ||||||
| 20 | limited to any compensation paid or accrued to a | ||||||
| 21 | serviceman while a prisoner of war or missing in | ||||||
| 22 | action) paid to a resident by reason of being a member | ||||||
| 23 | of any component of the Armed Forces of the United | ||||||
| 24 | States and in respect of any compensation paid or | ||||||
| 25 | accrued to a resident who as a governmental employee | ||||||
| 26 | was a prisoner of war or missing in action, and in | ||||||
| |||||||
| |||||||
| 1 | respect of any compensation paid to a resident in 2001 | ||||||
| 2 | or thereafter by reason of being a member of the | ||||||
| 3 | Illinois National Guard or, beginning with taxable | ||||||
| 4 | years ending on or after December 31, 2007, the | ||||||
| 5 | National Guard of any other state. The provisions of | ||||||
| 6 | this subparagraph (E) are exempt from the provisions | ||||||
| 7 | of Section 250; | ||||||
| 8 | (F) An amount equal to all amounts included in | ||||||
| 9 | such total pursuant to the provisions of Sections | ||||||
| 10 | 402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and | ||||||
| 11 | 408 of the Internal Revenue Code, or included in such | ||||||
| 12 | total as distributions under the provisions of any | ||||||
| 13 | retirement or disability plan for employees of any | ||||||
| 14 | governmental agency or unit, or retirement payments to | ||||||
| 15 | retired partners, which payments are excluded in | ||||||
| 16 | computing net earnings from self employment by Section | ||||||
| 17 | 1402 of the Internal Revenue Code and regulations | ||||||
| 18 | adopted pursuant thereto; | ||||||
| 19 | (G) The valuation limitation amount; | ||||||
| 20 | (H) An amount equal to the amount of any tax | ||||||
| 21 | imposed by this Act which was refunded to the taxpayer | ||||||
| 22 | and included in such total for the taxable year; | ||||||
| 23 | (I) An amount equal to all amounts included in | ||||||
| 24 | such total pursuant to the provisions of Section 111 | ||||||
| 25 | of the Internal Revenue Code as a recovery of items | ||||||
| 26 | previously deducted from adjusted gross income in the | ||||||
| |||||||
| |||||||
| 1 | computation of taxable income; | ||||||
| 2 | (J) An amount equal to those dividends included in | ||||||
| 3 | such total which were paid by a corporation which | ||||||
| 4 | conducts business operations in a River Edge | ||||||
| 5 | Redevelopment Zone or zones created under the River | ||||||
| 6 | Edge Redevelopment Zone Act, and conducts | ||||||
| 7 | substantially all of its operations in a River Edge | ||||||
| 8 | Redevelopment Zone or zones. This subparagraph (J) is | ||||||
| 9 | exempt from the provisions of Section 250; | ||||||
| 10 | (K) An amount equal to those dividends included in | ||||||
| 11 | such total that were paid by a corporation that | ||||||
| 12 | conducts business operations in a federally designated | ||||||
| 13 | Foreign Trade Zone or Sub-Zone and that is designated | ||||||
| 14 | a High Impact Business located in Illinois; provided | ||||||
| 15 | that dividends eligible for the deduction provided in | ||||||
| 16 | subparagraph (J) of paragraph (2) of this subsection | ||||||
| 17 | shall not be eligible for the deduction provided under | ||||||
| 18 | this subparagraph (K); | ||||||
| 19 | (L) For taxable years ending after December 31, | ||||||
| 20 | 1983, an amount equal to all social security benefits | ||||||
| 21 | and railroad retirement benefits included in such | ||||||
| 22 | total pursuant to Sections 72(r) and 86 of the | ||||||
| 23 | Internal Revenue Code; | ||||||
| 24 | (M) With the exception of any amounts subtracted | ||||||
| 25 | under subparagraph (N), an amount equal to the sum of | ||||||
| 26 | all amounts disallowed as deductions by (i) Sections | ||||||
| |||||||
| |||||||
| 1 | 171(a)(2) and 265(a)(2) of the Internal Revenue Code, | ||||||
| 2 | and all amounts of expenses allocable to interest and | ||||||
| 3 | disallowed as deductions by Section 265(a)(1) of the | ||||||
| 4 | Internal Revenue Code; and (ii) for taxable years | ||||||
| 5 | ending on or after August 13, 1999, Sections | ||||||
| 6 | 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the | ||||||
| 7 | Internal Revenue Code, plus, for taxable years ending | ||||||
| 8 | on or after December 31, 2011, Section 45G(e)(3) of | ||||||
| 9 | the Internal Revenue Code and, for taxable years | ||||||
| 10 | ending on or after December 31, 2008, any amount | ||||||
| 11 | included in gross income under Section 87 of the | ||||||
| 12 | Internal Revenue Code; the provisions of this | ||||||
| 13 | subparagraph are exempt from the provisions of Section | ||||||
| 14 | 250; | ||||||
| 15 | (N) An amount equal to all amounts included in | ||||||
| 16 | such total which are exempt from taxation by this | ||||||
| 17 | State either by reason of its statutes or Constitution | ||||||
| 18 | or by reason of the Constitution, treaties or statutes | ||||||
| 19 | of the United States; provided that, in the case of any | ||||||
| 20 | statute of this State that exempts income derived from | ||||||
| 21 | bonds or other obligations from the tax imposed under | ||||||
| 22 | this Act, the amount exempted shall be the interest | ||||||
| 23 | net of bond premium amortization; | ||||||
| 24 | (O) An amount equal to any contribution made to a | ||||||
| 25 | job training project established pursuant to the Tax | ||||||
| 26 | Increment Allocation Redevelopment Act; | ||||||
| |||||||
| |||||||
| 1 | (P) An amount equal to the amount of the deduction | ||||||
| 2 | used to compute the federal income tax credit for | ||||||
| 3 | restoration of substantial amounts held under claim of | ||||||
| 4 | right for the taxable year pursuant to Section 1341 of | ||||||
| 5 | the Internal Revenue Code or of any itemized deduction | ||||||
| 6 | taken from adjusted gross income in the computation of | ||||||
| 7 | taxable income for restoration of substantial amounts | ||||||
| 8 | held under claim of right for the taxable year; | ||||||
| 9 | (Q) An amount equal to any amounts included in | ||||||
| 10 | such total, received by the taxpayer as an | ||||||
| 11 | acceleration in the payment of life, endowment or | ||||||
| 12 | annuity benefits in advance of the time they would | ||||||
| 13 | otherwise be payable as an indemnity for a terminal | ||||||
| 14 | illness; | ||||||
| 15 | (R) An amount equal to the amount of any federal or | ||||||
| 16 | State bonus paid to veterans of the Persian Gulf War; | ||||||
| 17 | (S) An amount, to the extent included in adjusted | ||||||
| 18 | gross income, equal to the amount of a contribution | ||||||
| 19 | made in the taxable year on behalf of the taxpayer to a | ||||||
| 20 | medical care savings account established under the | ||||||
| 21 | Medical Care Savings Account Act or the Medical Care | ||||||
| 22 | Savings Account Act of 2000 to the extent the | ||||||
| 23 | contribution is accepted by the account administrator | ||||||
| 24 | as provided in that Act; | ||||||
| 25 | (T) An amount, to the extent included in adjusted | ||||||
| 26 | gross income, equal to the amount of interest earned | ||||||
| |||||||
| |||||||
| 1 | in the taxable year on a medical care savings account | ||||||
| 2 | established under the Medical Care Savings Account Act | ||||||
| 3 | or the Medical Care Savings Account Act of 2000 on | ||||||
| 4 | behalf of the taxpayer, other than interest added | ||||||
| 5 | pursuant to item (D-5) of this paragraph (2); | ||||||
| 6 | (U) For one taxable year beginning on or after | ||||||
| 7 | January 1, 1994, an amount equal to the total amount of | ||||||
| 8 | tax imposed and paid under subsections (a) and (b) of | ||||||
| 9 | Section 201 of this Act on grant amounts received by | ||||||
| 10 | the taxpayer under the Nursing Home Grant Assistance | ||||||
| 11 | Act during the taxpayer's taxable years 1992 and 1993; | ||||||
| 12 | (V) Beginning with tax years ending on or after | ||||||
| 13 | December 31, 1995 and ending with tax years ending on | ||||||
| 14 | or before December 31, 2004, an amount equal to the | ||||||
| 15 | amount paid by a taxpayer who is a self-employed | ||||||
| 16 | taxpayer, a partner of a partnership, or a shareholder | ||||||
| 17 | in a Subchapter S corporation for health insurance or | ||||||
| 18 | long-term care insurance for that taxpayer or that | ||||||
| 19 | taxpayer's spouse or dependents, to the extent that | ||||||
| 20 | the amount paid for that health insurance or long-term | ||||||
| 21 | care insurance may be deducted under Section 213 of | ||||||
| 22 | the Internal Revenue Code, has not been deducted on | ||||||
| 23 | the federal income tax return of the taxpayer, and | ||||||
| 24 | does not exceed the taxable income attributable to | ||||||
| 25 | that taxpayer's income, self-employment income, or | ||||||
| 26 | Subchapter S corporation income; except that no | ||||||
| |||||||
| |||||||
| 1 | deduction shall be allowed under this item (V) if the | ||||||
| 2 | taxpayer is eligible to participate in any health | ||||||
| 3 | insurance or long-term care insurance plan of an | ||||||
| 4 | employer of the taxpayer or the taxpayer's spouse. The | ||||||
| 5 | amount of the health insurance and long-term care | ||||||
| 6 | insurance subtracted under this item (V) shall be | ||||||
| 7 | determined by multiplying total health insurance and | ||||||
| 8 | long-term care insurance premiums paid by the taxpayer | ||||||
| 9 | times a number that represents the fractional | ||||||
| 10 | percentage of eligible medical expenses under Section | ||||||
| 11 | 213 of the Internal Revenue Code of 1986 not actually | ||||||
| 12 | deducted on the taxpayer's federal income tax return; | ||||||
| 13 | (W) For taxable years beginning on or after | ||||||
| 14 | January 1, 1998, all amounts included in the | ||||||
| 15 | taxpayer's federal gross income in the taxable year | ||||||
| 16 | from amounts converted from a regular IRA to a Roth | ||||||
| 17 | IRA. This paragraph is exempt from the provisions of | ||||||
| 18 | Section 250; | ||||||
| 19 | (X) For taxable year 1999 and thereafter, an | ||||||
| 20 | amount equal to the amount of any (i) distributions, | ||||||
| 21 | to the extent includible in gross income for federal | ||||||
| 22 | income tax purposes, made to the taxpayer because of | ||||||
| 23 | his or her status as a victim of persecution for racial | ||||||
| 24 | or religious reasons by Nazi Germany or any other Axis | ||||||
| 25 | regime or as an heir of the victim and (ii) items of | ||||||
| 26 | income, to the extent includible in gross income for | ||||||
| |||||||
| |||||||
| 1 | federal income tax purposes, attributable to, derived | ||||||
| 2 | from or in any way related to assets stolen from, | ||||||
| 3 | hidden from, or otherwise lost to a victim of | ||||||
| 4 | persecution for racial or religious reasons by Nazi | ||||||
| 5 | Germany or any other Axis regime immediately prior to, | ||||||
| 6 | during, and immediately after World War II, including, | ||||||
| 7 | but not limited to, interest on the proceeds | ||||||
| 8 | receivable as insurance under policies issued to a | ||||||
| 9 | victim of persecution for racial or religious reasons | ||||||
| 10 | by Nazi Germany or any other Axis regime by European | ||||||
| 11 | insurance companies immediately prior to and during | ||||||
| 12 | World War II; provided, however, this subtraction from | ||||||
| 13 | federal adjusted gross income does not apply to assets | ||||||
| 14 | acquired with such assets or with the proceeds from | ||||||
| 15 | the sale of such assets; provided, further, this | ||||||
| 16 | paragraph shall only apply to a taxpayer who was the | ||||||
| 17 | first recipient of such assets after their recovery | ||||||
| 18 | and who is a victim of persecution for racial or | ||||||
| 19 | religious reasons by Nazi Germany or any other Axis | ||||||
| 20 | regime or as an heir of the victim. The amount of and | ||||||
| 21 | the eligibility for any public assistance, benefit, or | ||||||
| 22 | similar entitlement is not affected by the inclusion | ||||||
| 23 | of items (i) and (ii) of this paragraph in gross income | ||||||
| 24 | for federal income tax purposes. This paragraph is | ||||||
| 25 | exempt from the provisions of Section 250; | ||||||
| 26 | (Y) For taxable years beginning on or after | ||||||
| |||||||
| |||||||
| 1 | January 1, 2002 and ending on or before December 31, | ||||||
| 2 | 2004, moneys contributed in the taxable year to a | ||||||
| 3 | College Savings Pool account under Section 16.5 of the | ||||||
| 4 | State Treasurer Act, except that amounts excluded from | ||||||
| 5 | gross income under Section 529(c)(3)(C)(i) of the | ||||||
| 6 | Internal Revenue Code shall not be considered moneys | ||||||
| 7 | contributed under this subparagraph (Y). For taxable | ||||||
| 8 | years beginning on or after January 1, 2005, a maximum | ||||||
| 9 | of $10,000 contributed in the taxable year to (i) a | ||||||
| 10 | College Savings Pool account under Section 16.5 of the | ||||||
| 11 | State Treasurer Act or (ii) the Illinois Prepaid | ||||||
| 12 | Tuition Trust Fund, except that amounts excluded from | ||||||
| 13 | gross income under Section 529(c)(3)(C)(i) of the | ||||||
| 14 | Internal Revenue Code shall not be considered moneys | ||||||
| 15 | contributed under this subparagraph (Y). For purposes | ||||||
| 16 | of this subparagraph, contributions made by an | ||||||
| 17 | employer on behalf of an employee, or matching | ||||||
| 18 | contributions made by an employee, shall be treated as | ||||||
| 19 | made by the employee. This subparagraph (Y) is exempt | ||||||
| 20 | from the provisions of Section 250; | ||||||
| 21 | (Z) For taxable years 2001 and thereafter, for the | ||||||
| 22 | taxable year in which the bonus depreciation deduction | ||||||
| 23 | is taken on the taxpayer's federal income tax return | ||||||
| 24 | under subsection (k) of Section 168 of the Internal | ||||||
| 25 | Revenue Code and for each applicable taxable year | ||||||
| 26 | thereafter, an amount equal to "x", where: | ||||||
| |||||||
| |||||||
| 1 | (1) "y" equals the amount of the depreciation | ||||||
| 2 | deduction taken for the taxable year on the | ||||||
| 3 | taxpayer's federal income tax return on property | ||||||
| 4 | for which the bonus depreciation deduction was | ||||||
| 5 | taken in any year under subsection (k) of Section | ||||||
| 6 | 168 of the Internal Revenue Code, but not | ||||||
| 7 | including the bonus depreciation deduction; | ||||||
| 8 | (2) for taxable years ending on or before | ||||||
| 9 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
| 10 | and then divided by 70 (or "y" multiplied by | ||||||
| 11 | 0.429); and | ||||||
| 12 | (3) for taxable years ending after December | ||||||
| 13 | 31, 2005: | ||||||
| 14 | (i) for property on which a bonus | ||||||
| 15 | depreciation deduction of 30% of the adjusted | ||||||
| 16 | basis was taken, "x" equals "y" multiplied by | ||||||
| 17 | 30 and then divided by 70 (or "y" multiplied | ||||||
| 18 | by 0.429); | ||||||
| 19 | (ii) for property on which a bonus | ||||||
| 20 | depreciation deduction of 50% of the adjusted | ||||||
| 21 | basis was taken, "x" equals "y" multiplied by | ||||||
| 22 | 1.0; | ||||||
| 23 | (iii) for property on which a bonus | ||||||
| 24 | depreciation deduction of 100% of the adjusted | ||||||
| 25 | basis was taken in a taxable year ending on or | ||||||
| 26 | after December 31, 2021, "x" equals the | ||||||
| |||||||
| |||||||
| 1 | depreciation deduction that would be allowed | ||||||
| 2 | on that property if the taxpayer had made the | ||||||
| 3 | election under Section 168(k)(7) of the | ||||||
| 4 | Internal Revenue Code to not claim bonus | ||||||
| 5 | depreciation on that property; and | ||||||
| 6 | (iv) for property on which a bonus | ||||||
| 7 | depreciation deduction of a percentage other | ||||||
| 8 | than 30%, 50% or 100% of the adjusted basis | ||||||
| 9 | was taken in a taxable year ending on or after | ||||||
| 10 | December 31, 2021, "x" equals "y" multiplied | ||||||
| 11 | by 100 times the percentage bonus depreciation | ||||||
| 12 | on the property (that is, 100(bonus%)) and | ||||||
| 13 | then divided by 100 times 1 minus the | ||||||
| 14 | percentage bonus depreciation on the property | ||||||
| 15 | (that is, 100(1-bonus%)). | ||||||
| 16 | The aggregate amount deducted under this | ||||||
| 17 | subparagraph in all taxable years for any one piece of | ||||||
| 18 | property may not exceed the amount of the bonus | ||||||
| 19 | depreciation deduction taken on that property on the | ||||||
| 20 | taxpayer's federal income tax return under subsection | ||||||
| 21 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
| 22 | subparagraph (Z) is exempt from the provisions of | ||||||
| 23 | Section 250; | ||||||
| 24 | (AA) If the taxpayer sells, transfers, abandons, | ||||||
| 25 | or otherwise disposes of property for which the | ||||||
| 26 | taxpayer was required in any taxable year to make an | ||||||
| |||||||
| |||||||
| 1 | addition modification under subparagraph (D-15), then | ||||||
| 2 | an amount equal to that addition modification. | ||||||
| 3 | If the taxpayer continues to own property through | ||||||
| 4 | the last day of the last tax year for which a | ||||||
| 5 | subtraction is allowed with respect to that property | ||||||
| 6 | under subparagraph (Z) and for which the taxpayer was | ||||||
| 7 | required in any taxable year to make an addition | ||||||
| 8 | modification under subparagraph (D-15), then an amount | ||||||
| 9 | equal to that addition modification. | ||||||
| 10 | The taxpayer is allowed to take the deduction | ||||||
| 11 | under this subparagraph only once with respect to any | ||||||
| 12 | one piece of property. | ||||||
| 13 | This subparagraph (AA) is exempt from the | ||||||
| 14 | provisions of Section 250; | ||||||
| 15 | (BB) Any amount included in adjusted gross income, | ||||||
| 16 | other than salary, received by a driver in a | ||||||
| 17 | ridesharing arrangement using a motor vehicle; | ||||||
| 18 | (CC) The amount of (i) any interest income (net of | ||||||
| 19 | the deductions allocable thereto) taken into account | ||||||
| 20 | for the taxable year with respect to a transaction | ||||||
| 21 | with a taxpayer that is required to make an addition | ||||||
| 22 | modification with respect to such transaction under | ||||||
| 23 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
| 24 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
| 25 | the amount of that addition modification, and (ii) any | ||||||
| 26 | income from intangible property (net of the deductions | ||||||
| |||||||
| |||||||
| 1 | allocable thereto) taken into account for the taxable | ||||||
| 2 | year with respect to a transaction with a taxpayer | ||||||
| 3 | that is required to make an addition modification with | ||||||
| 4 | respect to such transaction under Section | ||||||
| 5 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
| 6 | 203(d)(2)(D-8), but not to exceed the amount of that | ||||||
| 7 | addition modification. This subparagraph (CC) is | ||||||
| 8 | exempt from the provisions of Section 250; | ||||||
| 9 | (DD) An amount equal to the interest income taken | ||||||
| 10 | into account for the taxable year (net of the | ||||||
| 11 | deductions allocable thereto) with respect to | ||||||
| 12 | transactions with (i) a foreign person who would be a | ||||||
| 13 | member of the taxpayer's unitary business group but | ||||||
| 14 | for the fact that the foreign person's business | ||||||
| 15 | activity outside the United States is 80% or more of | ||||||
| 16 | that person's total business activity and (ii) for | ||||||
| 17 | taxable years ending on or after December 31, 2008, to | ||||||
| 18 | a person who would be a member of the same unitary | ||||||
| 19 | business group but for the fact that the person is | ||||||
| 20 | prohibited under Section 1501(a)(27) from being | ||||||
| 21 | included in the unitary business group because he or | ||||||
| 22 | she is ordinarily required to apportion business | ||||||
| 23 | income under different subsections of Section 304, but | ||||||
| 24 | not to exceed the addition modification required to be | ||||||
| 25 | made for the same taxable year under Section | ||||||
| 26 | 203(a)(2)(D-17) for interest paid, accrued, or | ||||||
| |||||||
| |||||||
| 1 | incurred, directly or indirectly, to the same person. | ||||||
| 2 | This subparagraph (DD) is exempt from the provisions | ||||||
| 3 | of Section 250; | ||||||
| 4 | (EE) An amount equal to the income from intangible | ||||||
| 5 | property taken into account for the taxable year (net | ||||||
| 6 | of the deductions allocable thereto) with respect to | ||||||
| 7 | transactions with (i) a foreign person who would be a | ||||||
| 8 | member of the taxpayer's unitary business group but | ||||||
| 9 | for the fact that the foreign person's business | ||||||
| 10 | activity outside the United States is 80% or more of | ||||||
| 11 | that person's total business activity and (ii) for | ||||||
| 12 | taxable years ending on or after December 31, 2008, to | ||||||
| 13 | a person who would be a member of the same unitary | ||||||
| 14 | business group but for the fact that the person is | ||||||
| 15 | prohibited under Section 1501(a)(27) from being | ||||||
| 16 | included in the unitary business group because he or | ||||||
| 17 | she is ordinarily required to apportion business | ||||||
| 18 | income under different subsections of Section 304, but | ||||||
| 19 | not to exceed the addition modification required to be | ||||||
| 20 | made for the same taxable year under Section | ||||||
| 21 | 203(a)(2)(D-18) for intangible expenses and costs | ||||||
| 22 | paid, accrued, or incurred, directly or indirectly, to | ||||||
| 23 | the same foreign person. This subparagraph (EE) is | ||||||
| 24 | exempt from the provisions of Section 250; | ||||||
| 25 | (FF) An amount equal to any amount awarded to the | ||||||
| 26 | taxpayer during the taxable year by the Court of | ||||||
| |||||||
| |||||||
| 1 | Claims under subsection (c) of Section 8 of the Court | ||||||
| 2 | of Claims Act for time unjustly served in a State | ||||||
| 3 | prison. This subparagraph (FF) is exempt from the | ||||||
| 4 | provisions of Section 250; | ||||||
| 5 | (GG) For taxable years ending on or after December | ||||||
| 6 | 31, 2011, in the case of a taxpayer who was required to | ||||||
| 7 | add back any insurance premiums under Section | ||||||
| 8 | 203(a)(2)(D-19), such taxpayer may elect to subtract | ||||||
| 9 | that part of a reimbursement received from the | ||||||
| 10 | insurance company equal to the amount of the expense | ||||||
| 11 | or loss (including expenses incurred by the insurance | ||||||
| 12 | company) that would have been taken into account as a | ||||||
| 13 | deduction for federal income tax purposes if the | ||||||
| 14 | expense or loss had been uninsured. If a taxpayer | ||||||
| 15 | makes the election provided for by this subparagraph | ||||||
| 16 | (GG), the insurer to which the premiums were paid must | ||||||
| 17 | add back to income the amount subtracted by the | ||||||
| 18 | taxpayer pursuant to this subparagraph (GG). This | ||||||
| 19 | subparagraph (GG) is exempt from the provisions of | ||||||
| 20 | Section 250; | ||||||
| 21 | (HH) For taxable years beginning on or after | ||||||
| 22 | January 1, 2018 and prior to January 1, 2028, a maximum | ||||||
| 23 | of $10,000 contributed in the taxable year to a | ||||||
| 24 | qualified ABLE account under Section 16.6 of the State | ||||||
| 25 | Treasurer Act, except that amounts excluded from gross | ||||||
| 26 | income under Section 529(c)(3)(C)(i) or Section | ||||||
| |||||||
| |||||||
| 1 | 529A(c)(1)(C) of the Internal Revenue Code shall not | ||||||
| 2 | be considered moneys contributed under this | ||||||
| 3 | subparagraph (HH). For purposes of this subparagraph | ||||||
| 4 | (HH), contributions made by an employer on behalf of | ||||||
| 5 | an employee, or matching contributions made by an | ||||||
| 6 | employee, shall be treated as made by the employee; | ||||||
| 7 | (II) For taxable years that begin on or after | ||||||
| 8 | January 1, 2021 and begin before January 1, 2026, the | ||||||
| 9 | amount that is included in the taxpayer's federal | ||||||
| 10 | adjusted gross income pursuant to Section 61 of the | ||||||
| 11 | Internal Revenue Code as discharge of indebtedness | ||||||
| 12 | attributable to student loan forgiveness and that is | ||||||
| 13 | not excluded from the taxpayer's federal adjusted | ||||||
| 14 | gross income pursuant to paragraph (5) of subsection | ||||||
| 15 | (f) of Section 108 of the Internal Revenue Code; and | ||||||
| 16 | (JJ) For taxable years beginning on or after | ||||||
| 17 | January 1, 2023, for any cannabis establishment | ||||||
| 18 | operating in this State and licensed under the | ||||||
| 19 | Cannabis Regulation and Tax Act or any cannabis | ||||||
| 20 | cultivation center or medical cannabis dispensing | ||||||
| 21 | organization operating in this State and licensed | ||||||
| 22 | under the Compassionate Use of Medical Cannabis | ||||||
| 23 | Program Act, an amount equal to the deductions that | ||||||
| 24 | were disallowed under Section 280E of the Internal | ||||||
| 25 | Revenue Code for the taxable year and that would not be | ||||||
| 26 | added back under this subsection. The provisions of | ||||||
| |||||||
| |||||||
| 1 | this subparagraph (JJ) are exempt from the provisions | ||||||
| 2 | of Section 250; . | ||||||
| 3 | (KK) (JJ) To the extent includible in gross income | ||||||
| 4 | for federal income tax purposes, any amount awarded or | ||||||
| 5 | paid to the taxpayer as a result of a judgment or | ||||||
| 6 | settlement for fertility fraud as provided in Section | ||||||
| 7 | 15 of the Illinois Fertility Fraud Act, donor | ||||||
| 8 | fertility fraud as provided in Section 20 of the | ||||||
| 9 | Illinois Fertility Fraud Act, or similar action in | ||||||
| 10 | another state; and . | ||||||
| 11 | (LL) For taxable years beginning on or after | ||||||
| 12 | January 1, 2026, if the taxpayer is a qualified | ||||||
| 13 | worker, as defined in the Workforce Development | ||||||
| 14 | through Charitable Loan Repayment Act, an amount equal | ||||||
| 15 | to the amount included in the taxpayer's federal | ||||||
| 16 | adjusted gross income that is attributable to student | ||||||
| 17 | loan repayment assistance received by the taxpayer | ||||||
| 18 | during the taxable year from a qualified community | ||||||
| 19 | foundation under the provisions of the Workforce | ||||||
| 20 | Development Through Charitable Loan Repayment Act. | ||||||
| 21 | This subparagraph (LL) is exempt from the | ||||||
| 22 | provisions of Section 250.
| ||||||
| 23 | (b) Corporations. | ||||||
| 24 | (1) In general. In the case of a corporation, base | ||||||
| 25 | income means an amount equal to the taxpayer's taxable | ||||||
| |||||||
| |||||||
| 1 | income for the taxable year as modified by paragraph (2). | ||||||
| 2 | (2) Modifications. The taxable income referred to in | ||||||
| 3 | paragraph (1) shall be modified by adding thereto the sum | ||||||
| 4 | of the following amounts: | ||||||
| 5 | (A) An amount equal to all amounts paid or accrued | ||||||
| 6 | to the taxpayer as interest and all distributions | ||||||
| 7 | received from regulated investment companies during | ||||||
| 8 | the taxable year to the extent excluded from gross | ||||||
| 9 | income in the computation of taxable income; | ||||||
| 10 | (B) An amount equal to the amount of tax imposed by | ||||||
| 11 | this Act to the extent deducted from gross income in | ||||||
| 12 | the computation of taxable income for the taxable | ||||||
| 13 | year; | ||||||
| 14 | (C) In the case of a regulated investment company, | ||||||
| 15 | an amount equal to the excess of (i) the net long-term | ||||||
| 16 | capital gain for the taxable year, over (ii) the | ||||||
| 17 | amount of the capital gain dividends designated as | ||||||
| 18 | such in accordance with Section 852(b)(3)(C) of the | ||||||
| 19 | Internal Revenue Code and any amount designated under | ||||||
| 20 | Section 852(b)(3)(D) of the Internal Revenue Code, | ||||||
| 21 | attributable to the taxable year (this amendatory Act | ||||||
| 22 | of 1995 (Public Act 89-89) is declarative of existing | ||||||
| 23 | law and is not a new enactment); | ||||||
| 24 | (D) The amount of any net operating loss deduction | ||||||
| 25 | taken in arriving at taxable income, other than a net | ||||||
| 26 | operating loss carried forward from a taxable year | ||||||
| |||||||
| |||||||
| 1 | ending prior to December 31, 1986; | ||||||
| 2 | (E) For taxable years in which a net operating | ||||||
| 3 | loss carryback or carryforward from a taxable year | ||||||
| 4 | ending prior to December 31, 1986 is an element of | ||||||
| 5 | taxable income under paragraph (1) of subsection (e) | ||||||
| 6 | or subparagraph (E) of paragraph (2) of subsection | ||||||
| 7 | (e), the amount by which addition modifications other | ||||||
| 8 | than those provided by this subparagraph (E) exceeded | ||||||
| 9 | subtraction modifications in such earlier taxable | ||||||
| 10 | year, with the following limitations applied in the | ||||||
| 11 | order that they are listed: | ||||||
| 12 | (i) the addition modification relating to the | ||||||
| 13 | net operating loss carried back or forward to the | ||||||
| 14 | taxable year from any taxable year ending prior to | ||||||
| 15 | December 31, 1986 shall be reduced by the amount | ||||||
| 16 | of addition modification under this subparagraph | ||||||
| 17 | (E) which related to that net operating loss and | ||||||
| 18 | which was taken into account in calculating the | ||||||
| 19 | base income of an earlier taxable year, and | ||||||
| 20 | (ii) the addition modification relating to the | ||||||
| 21 | net operating loss carried back or forward to the | ||||||
| 22 | taxable year from any taxable year ending prior to | ||||||
| 23 | December 31, 1986 shall not exceed the amount of | ||||||
| 24 | such carryback or carryforward; | ||||||
| 25 | For taxable years in which there is a net | ||||||
| 26 | operating loss carryback or carryforward from more | ||||||
| |||||||
| |||||||
| 1 | than one other taxable year ending prior to December | ||||||
| 2 | 31, 1986, the addition modification provided in this | ||||||
| 3 | subparagraph (E) shall be the sum of the amounts | ||||||
| 4 | computed independently under the preceding provisions | ||||||
| 5 | of this subparagraph (E) for each such taxable year; | ||||||
| 6 | (E-5) For taxable years ending after December 31, | ||||||
| 7 | 1997, an amount equal to any eligible remediation | ||||||
| 8 | costs that the corporation deducted in computing | ||||||
| 9 | adjusted gross income and for which the corporation | ||||||
| 10 | claims a credit under subsection (l) of Section 201; | ||||||
| 11 | (E-10) For taxable years 2001 and thereafter, an | ||||||
| 12 | amount equal to the bonus depreciation deduction taken | ||||||
| 13 | on the taxpayer's federal income tax return for the | ||||||
| 14 | taxable year under subsection (k) of Section 168 of | ||||||
| 15 | the Internal Revenue Code; | ||||||
| 16 | (E-11) If the taxpayer sells, transfers, abandons, | ||||||
| 17 | or otherwise disposes of property for which the | ||||||
| 18 | taxpayer was required in any taxable year to make an | ||||||
| 19 | addition modification under subparagraph (E-10), then | ||||||
| 20 | an amount equal to the aggregate amount of the | ||||||
| 21 | deductions taken in all taxable years under | ||||||
| 22 | subparagraph (T) with respect to that property. | ||||||
| 23 | If the taxpayer continues to own property through | ||||||
| 24 | the last day of the last tax year for which a | ||||||
| 25 | subtraction is allowed with respect to that property | ||||||
| 26 | under subparagraph (T) and for which the taxpayer was | ||||||
| |||||||
| |||||||
| 1 | allowed in any taxable year to make a subtraction | ||||||
| 2 | modification under subparagraph (T), then an amount | ||||||
| 3 | equal to that subtraction modification. | ||||||
| 4 | The taxpayer is required to make the addition | ||||||
| 5 | modification under this subparagraph only once with | ||||||
| 6 | respect to any one piece of property; | ||||||
| 7 | (E-12) An amount equal to the amount otherwise | ||||||
| 8 | allowed as a deduction in computing base income for | ||||||
| 9 | interest paid, accrued, or incurred, directly or | ||||||
| 10 | indirectly, (i) for taxable years ending on or after | ||||||
| 11 | December 31, 2004, to a foreign person who would be a | ||||||
| 12 | member of the same unitary business group but for the | ||||||
| 13 | fact the foreign person's business activity outside | ||||||
| 14 | the United States is 80% or more of the foreign | ||||||
| 15 | person's total business activity and (ii) for taxable | ||||||
| 16 | years ending on or after December 31, 2008, to a person | ||||||
| 17 | who would be a member of the same unitary business | ||||||
| 18 | group but for the fact that the person is prohibited | ||||||
| 19 | under Section 1501(a)(27) from being included in the | ||||||
| 20 | unitary business group because he or she is ordinarily | ||||||
| 21 | required to apportion business income under different | ||||||
| 22 | subsections of Section 304. The addition modification | ||||||
| 23 | required by this subparagraph shall be reduced to the | ||||||
| 24 | extent that dividends were included in base income of | ||||||
| 25 | the unitary group for the same taxable year and | ||||||
| 26 | received by the taxpayer or by a member of the | ||||||
| |||||||
| |||||||
| 1 | taxpayer's unitary business group (including amounts | ||||||
| 2 | included in gross income pursuant to Sections 951 | ||||||
| 3 | through 964 of the Internal Revenue Code and amounts | ||||||
| 4 | included in gross income under Section 78 of the | ||||||
| 5 | Internal Revenue Code) with respect to the stock of | ||||||
| 6 | the same person to whom the interest was paid, | ||||||
| 7 | accrued, or incurred. | ||||||
| 8 | This paragraph shall not apply to the following: | ||||||
| 9 | (i) an item of interest paid, accrued, or | ||||||
| 10 | incurred, directly or indirectly, to a person who | ||||||
| 11 | is subject in a foreign country or state, other | ||||||
| 12 | than a state which requires mandatory unitary | ||||||
| 13 | reporting, to a tax on or measured by net income | ||||||
| 14 | with respect to such interest; or | ||||||
| 15 | (ii) an item of interest paid, accrued, or | ||||||
| 16 | incurred, directly or indirectly, to a person if | ||||||
| 17 | the taxpayer can establish, based on a | ||||||
| 18 | preponderance of the evidence, both of the | ||||||
| 19 | following: | ||||||
| 20 | (a) the person, during the same taxable | ||||||
| 21 | year, paid, accrued, or incurred, the interest | ||||||
| 22 | to a person that is not a related member, and | ||||||
| 23 | (b) the transaction giving rise to the | ||||||
| 24 | interest expense between the taxpayer and the | ||||||
| 25 | person did not have as a principal purpose the | ||||||
| 26 | avoidance of Illinois income tax, and is paid | ||||||
| |||||||
| |||||||
| 1 | pursuant to a contract or agreement that | ||||||
| 2 | reflects an arm's-length interest rate and | ||||||
| 3 | terms; or | ||||||
| 4 | (iii) the taxpayer can establish, based on | ||||||
| 5 | clear and convincing evidence, that the interest | ||||||
| 6 | paid, accrued, or incurred relates to a contract | ||||||
| 7 | or agreement entered into at arm's-length rates | ||||||
| 8 | and terms and the principal purpose for the | ||||||
| 9 | payment is not federal or Illinois tax avoidance; | ||||||
| 10 | or | ||||||
| 11 | (iv) an item of interest paid, accrued, or | ||||||
| 12 | incurred, directly or indirectly, to a person if | ||||||
| 13 | the taxpayer establishes by clear and convincing | ||||||
| 14 | evidence that the adjustments are unreasonable; or | ||||||
| 15 | if the taxpayer and the Director agree in writing | ||||||
| 16 | to the application or use of an alternative method | ||||||
| 17 | of apportionment under Section 304(f). | ||||||
| 18 | Nothing in this subsection shall preclude the | ||||||
| 19 | Director from making any other adjustment | ||||||
| 20 | otherwise allowed under Section 404 of this Act | ||||||
| 21 | for any tax year beginning after the effective | ||||||
| 22 | date of this amendment provided such adjustment is | ||||||
| 23 | made pursuant to regulation adopted by the | ||||||
| 24 | Department and such regulations provide methods | ||||||
| 25 | and standards by which the Department will utilize | ||||||
| 26 | its authority under Section 404 of this Act; | ||||||
| |||||||
| |||||||
| 1 | (E-13) An amount equal to the amount of intangible | ||||||
| 2 | expenses and costs otherwise allowed as a deduction in | ||||||
| 3 | computing base income, and that were paid, accrued, or | ||||||
| 4 | incurred, directly or indirectly, (i) for taxable | ||||||
| 5 | years ending on or after December 31, 2004, to a | ||||||
| 6 | foreign person who would be a member of the same | ||||||
| 7 | unitary business group but for the fact that the | ||||||
| 8 | foreign person's business activity outside the United | ||||||
| 9 | States is 80% or more of that person's total business | ||||||
| 10 | activity and (ii) for taxable years ending on or after | ||||||
| 11 | December 31, 2008, to a person who would be a member of | ||||||
| 12 | the same unitary business group but for the fact that | ||||||
| 13 | the person is prohibited under Section 1501(a)(27) | ||||||
| 14 | from being included in the unitary business group | ||||||
| 15 | because he or she is ordinarily required to apportion | ||||||
| 16 | business income under different subsections of Section | ||||||
| 17 | 304. The addition modification required by this | ||||||
| 18 | subparagraph shall be reduced to the extent that | ||||||
| 19 | dividends were included in base income of the unitary | ||||||
| 20 | group for the same taxable year and received by the | ||||||
| 21 | taxpayer or by a member of the taxpayer's unitary | ||||||
| 22 | business group (including amounts included in gross | ||||||
| 23 | income pursuant to Sections 951 through 964 of the | ||||||
| 24 | Internal Revenue Code and amounts included in gross | ||||||
| 25 | income under Section 78 of the Internal Revenue Code) | ||||||
| 26 | with respect to the stock of the same person to whom | ||||||
| |||||||
| |||||||
| 1 | the intangible expenses and costs were directly or | ||||||
| 2 | indirectly paid, incurred, or accrued. The preceding | ||||||
| 3 | sentence shall not apply to the extent that the same | ||||||
| 4 | dividends caused a reduction to the addition | ||||||
| 5 | modification required under Section 203(b)(2)(E-12) of | ||||||
| 6 | this Act. As used in this subparagraph, the term | ||||||
| 7 | "intangible expenses and costs" includes (1) expenses, | ||||||
| 8 | losses, and costs for, or related to, the direct or | ||||||
| 9 | indirect acquisition, use, maintenance or management, | ||||||
| 10 | ownership, sale, exchange, or any other disposition of | ||||||
| 11 | intangible property; (2) losses incurred, directly or | ||||||
| 12 | indirectly, from factoring transactions or discounting | ||||||
| 13 | transactions; (3) royalty, patent, technical, and | ||||||
| 14 | copyright fees; (4) licensing fees; and (5) other | ||||||
| 15 | similar expenses and costs. For purposes of this | ||||||
| 16 | subparagraph, "intangible property" includes patents, | ||||||
| 17 | patent applications, trade names, trademarks, service | ||||||
| 18 | marks, copyrights, mask works, trade secrets, and | ||||||
| 19 | similar types of intangible assets. | ||||||
| 20 | This paragraph shall not apply to the following: | ||||||
| 21 | (i) any item of intangible expenses or costs | ||||||
| 22 | paid, accrued, or incurred, directly or | ||||||
| 23 | indirectly, from a transaction with a person who | ||||||
| 24 | is subject in a foreign country or state, other | ||||||
| 25 | than a state which requires mandatory unitary | ||||||
| 26 | reporting, to a tax on or measured by net income | ||||||
| |||||||
| |||||||
| 1 | with respect to such item; or | ||||||
| 2 | (ii) any item of intangible expense or cost | ||||||
| 3 | paid, accrued, or incurred, directly or | ||||||
| 4 | indirectly, if the taxpayer can establish, based | ||||||
| 5 | on a preponderance of the evidence, both of the | ||||||
| 6 | following: | ||||||
| 7 | (a) the person during the same taxable | ||||||
| 8 | year paid, accrued, or incurred, the | ||||||
| 9 | intangible expense or cost to a person that is | ||||||
| 10 | not a related member, and | ||||||
| 11 | (b) the transaction giving rise to the | ||||||
| 12 | intangible expense or cost between the | ||||||
| 13 | taxpayer and the person did not have as a | ||||||
| 14 | principal purpose the avoidance of Illinois | ||||||
| 15 | income tax, and is paid pursuant to a contract | ||||||
| 16 | or agreement that reflects arm's-length terms; | ||||||
| 17 | or | ||||||
| 18 | (iii) any item of intangible expense or cost | ||||||
| 19 | paid, accrued, or incurred, directly or | ||||||
| 20 | indirectly, from a transaction with a person if | ||||||
| 21 | the taxpayer establishes by clear and convincing | ||||||
| 22 | evidence, that the adjustments are unreasonable; | ||||||
| 23 | or if the taxpayer and the Director agree in | ||||||
| 24 | writing to the application or use of an | ||||||
| 25 | alternative method of apportionment under Section | ||||||
| 26 | 304(f); | ||||||
| |||||||
| |||||||
| 1 | Nothing in this subsection shall preclude the | ||||||
| 2 | Director from making any other adjustment | ||||||
| 3 | otherwise allowed under Section 404 of this Act | ||||||
| 4 | for any tax year beginning after the effective | ||||||
| 5 | date of this amendment provided such adjustment is | ||||||
| 6 | made pursuant to regulation adopted by the | ||||||
| 7 | Department and such regulations provide methods | ||||||
| 8 | and standards by which the Department will utilize | ||||||
| 9 | its authority under Section 404 of this Act; | ||||||
| 10 | (E-14) For taxable years ending on or after | ||||||
| 11 | December 31, 2008, an amount equal to the amount of | ||||||
| 12 | insurance premium expenses and costs otherwise allowed | ||||||
| 13 | as a deduction in computing base income, and that were | ||||||
| 14 | paid, accrued, or incurred, directly or indirectly, to | ||||||
| 15 | a person who would be a member of the same unitary | ||||||
| 16 | business group but for the fact that the person is | ||||||
| 17 | prohibited under Section 1501(a)(27) from being | ||||||
| 18 | included in the unitary business group because he or | ||||||
| 19 | she is ordinarily required to apportion business | ||||||
| 20 | income under different subsections of Section 304. The | ||||||
| 21 | addition modification required by this subparagraph | ||||||
| 22 | shall be reduced to the extent that dividends were | ||||||
| 23 | included in base income of the unitary group for the | ||||||
| 24 | same taxable year and received by the taxpayer or by a | ||||||
| 25 | member of the taxpayer's unitary business group | ||||||
| 26 | (including amounts included in gross income under | ||||||
| |||||||
| |||||||
| 1 | Sections 951 through 964 of the Internal Revenue Code | ||||||
| 2 | and amounts included in gross income under Section 78 | ||||||
| 3 | of the Internal Revenue Code) with respect to the | ||||||
| 4 | stock of the same person to whom the premiums and costs | ||||||
| 5 | were directly or indirectly paid, incurred, or | ||||||
| 6 | accrued. The preceding sentence does not apply to the | ||||||
| 7 | extent that the same dividends caused a reduction to | ||||||
| 8 | the addition modification required under Section | ||||||
| 9 | 203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this | ||||||
| 10 | Act; | ||||||
| 11 | (E-15) For taxable years beginning after December | ||||||
| 12 | 31, 2008, any deduction for dividends paid by a | ||||||
| 13 | captive real estate investment trust that is allowed | ||||||
| 14 | to a real estate investment trust under Section | ||||||
| 15 | 857(b)(2)(B) of the Internal Revenue Code for | ||||||
| 16 | dividends paid; | ||||||
| 17 | (E-16) An amount equal to the credit allowable to | ||||||
| 18 | the taxpayer under Section 218(a) of this Act, | ||||||
| 19 | determined without regard to Section 218(c) of this | ||||||
| 20 | Act; | ||||||
| 21 | (E-17) For taxable years ending on or after | ||||||
| 22 | December 31, 2017, an amount equal to the deduction | ||||||
| 23 | allowed under Section 199 of the Internal Revenue Code | ||||||
| 24 | for the taxable year; | ||||||
| 25 | (E-18) for taxable years beginning after December | ||||||
| 26 | 31, 2018, an amount equal to the deduction allowed | ||||||
| |||||||
| |||||||
| 1 | under Section 250(a)(1)(A) of the Internal Revenue | ||||||
| 2 | Code for the taxable year; | ||||||
| 3 | (E-19) for taxable years ending on or after June | ||||||
| 4 | 30, 2021, an amount equal to the deduction allowed | ||||||
| 5 | under Section 250(a)(1)(B)(i) of the Internal Revenue | ||||||
| 6 | Code for the taxable year; | ||||||
| 7 | (E-20) for taxable years ending on or after June | ||||||
| 8 | 30, 2021, an amount equal to the deduction allowed | ||||||
| 9 | under Sections 243(e) and 245A(a) of the Internal | ||||||
| 10 | Revenue Code for the taxable year. | ||||||
| 11 | and by deducting from the total so obtained the sum of the | ||||||
| 12 | following amounts: | ||||||
| 13 | (F) An amount equal to the amount of any tax | ||||||
| 14 | imposed by this Act which was refunded to the taxpayer | ||||||
| 15 | and included in such total for the taxable year; | ||||||
| 16 | (G) An amount equal to any amount included in such | ||||||
| 17 | total under Section 78 of the Internal Revenue Code; | ||||||
| 18 | (H) In the case of a regulated investment company, | ||||||
| 19 | an amount equal to the amount of exempt interest | ||||||
| 20 | dividends as defined in subsection (b)(5) of Section | ||||||
| 21 | 852 of the Internal Revenue Code, paid to shareholders | ||||||
| 22 | for the taxable year; | ||||||
| 23 | (I) With the exception of any amounts subtracted | ||||||
| 24 | under subparagraph (J), an amount equal to the sum of | ||||||
| 25 | all amounts disallowed as deductions by (i) Sections | ||||||
| 26 | 171(a)(2) and 265(a)(2) and amounts disallowed as | ||||||
| |||||||
| |||||||
| 1 | interest expense by Section 291(a)(3) of the Internal | ||||||
| 2 | Revenue Code, and all amounts of expenses allocable to | ||||||
| 3 | interest and disallowed as deductions by Section | ||||||
| 4 | 265(a)(1) of the Internal Revenue Code; and (ii) for | ||||||
| 5 | taxable years ending on or after August 13, 1999, | ||||||
| 6 | Sections 171(a)(2), 265, 280C, 291(a)(3), and | ||||||
| 7 | 832(b)(5)(B)(i) of the Internal Revenue Code, plus, | ||||||
| 8 | for tax years ending on or after December 31, 2011, | ||||||
| 9 | amounts disallowed as deductions by Section 45G(e)(3) | ||||||
| 10 | of the Internal Revenue Code and, for taxable years | ||||||
| 11 | ending on or after December 31, 2008, any amount | ||||||
| 12 | included in gross income under Section 87 of the | ||||||
| 13 | Internal Revenue Code and the policyholders' share of | ||||||
| 14 | tax-exempt interest of a life insurance company under | ||||||
| 15 | Section 807(a)(2)(B) of the Internal Revenue Code (in | ||||||
| 16 | the case of a life insurance company with gross income | ||||||
| 17 | from a decrease in reserves for the tax year) or | ||||||
| 18 | Section 807(b)(1)(B) of the Internal Revenue Code (in | ||||||
| 19 | the case of a life insurance company allowed a | ||||||
| 20 | deduction for an increase in reserves for the tax | ||||||
| 21 | year); the provisions of this subparagraph are exempt | ||||||
| 22 | from the provisions of Section 250; | ||||||
| 23 | (J) An amount equal to all amounts included in | ||||||
| 24 | such total which are exempt from taxation by this | ||||||
| 25 | State either by reason of its statutes or Constitution | ||||||
| 26 | or by reason of the Constitution, treaties or statutes | ||||||
| |||||||
| |||||||
| 1 | of the United States; provided that, in the case of any | ||||||
| 2 | statute of this State that exempts income derived from | ||||||
| 3 | bonds or other obligations from the tax imposed under | ||||||
| 4 | this Act, the amount exempted shall be the interest | ||||||
| 5 | net of bond premium amortization; | ||||||
| 6 | (K) An amount equal to those dividends included in | ||||||
| 7 | such total which were paid by a corporation which | ||||||
| 8 | conducts business operations in a River Edge | ||||||
| 9 | Redevelopment Zone or zones created under the River | ||||||
| 10 | Edge Redevelopment Zone Act and conducts substantially | ||||||
| 11 | all of its operations in a River Edge Redevelopment | ||||||
| 12 | Zone or zones. This subparagraph (K) is exempt from | ||||||
| 13 | the provisions of Section 250; | ||||||
| 14 | (L) An amount equal to those dividends included in | ||||||
| 15 | such total that were paid by a corporation that | ||||||
| 16 | conducts business operations in a federally designated | ||||||
| 17 | Foreign Trade Zone or Sub-Zone and that is designated | ||||||
| 18 | a High Impact Business located in Illinois; provided | ||||||
| 19 | that dividends eligible for the deduction provided in | ||||||
| 20 | subparagraph (K) of paragraph 2 of this subsection | ||||||
| 21 | shall not be eligible for the deduction provided under | ||||||
| 22 | this subparagraph (L); | ||||||
| 23 | (M) For any taxpayer that is a financial | ||||||
| 24 | organization within the meaning of Section 304(c) of | ||||||
| 25 | this Act, an amount included in such total as interest | ||||||
| 26 | income from a loan or loans made by such taxpayer to a | ||||||
| |||||||
| |||||||
| 1 | borrower, to the extent that such a loan is secured by | ||||||
| 2 | property which is eligible for the River Edge | ||||||
| 3 | Redevelopment Zone Investment Credit. To determine the | ||||||
| 4 | portion of a loan or loans that is secured by property | ||||||
| 5 | eligible for a Section 201(f) investment credit to the | ||||||
| 6 | borrower, the entire principal amount of the loan or | ||||||
| 7 | loans between the taxpayer and the borrower should be | ||||||
| 8 | divided into the basis of the Section 201(f) | ||||||
| 9 | investment credit property which secures the loan or | ||||||
| 10 | loans, using for this purpose the original basis of | ||||||
| 11 | such property on the date that it was placed in service | ||||||
| 12 | in the River Edge Redevelopment Zone. The subtraction | ||||||
| 13 | modification available to the taxpayer in any year | ||||||
| 14 | under this subsection shall be that portion of the | ||||||
| 15 | total interest paid by the borrower with respect to | ||||||
| 16 | such loan attributable to the eligible property as | ||||||
| 17 | calculated under the previous sentence. This | ||||||
| 18 | subparagraph (M) is exempt from the provisions of | ||||||
| 19 | Section 250; | ||||||
| 20 | (M-1) For any taxpayer that is a financial | ||||||
| 21 | organization within the meaning of Section 304(c) of | ||||||
| 22 | this Act, an amount included in such total as interest | ||||||
| 23 | income from a loan or loans made by such taxpayer to a | ||||||
| 24 | borrower, to the extent that such a loan is secured by | ||||||
| 25 | property which is eligible for the High Impact | ||||||
| 26 | Business Investment Credit. To determine the portion | ||||||
| |||||||
| |||||||
| 1 | of a loan or loans that is secured by property eligible | ||||||
| 2 | for a Section 201(h) investment credit to the | ||||||
| 3 | borrower, the entire principal amount of the loan or | ||||||
| 4 | loans between the taxpayer and the borrower should be | ||||||
| 5 | divided into the basis of the Section 201(h) | ||||||
| 6 | investment credit property which secures the loan or | ||||||
| 7 | loans, using for this purpose the original basis of | ||||||
| 8 | such property on the date that it was placed in service | ||||||
| 9 | in a federally designated Foreign Trade Zone or | ||||||
| 10 | Sub-Zone located in Illinois. No taxpayer that is | ||||||
| 11 | eligible for the deduction provided in subparagraph | ||||||
| 12 | (M) of paragraph (2) of this subsection shall be | ||||||
| 13 | eligible for the deduction provided under this | ||||||
| 14 | subparagraph (M-1). The subtraction modification | ||||||
| 15 | available to taxpayers in any year under this | ||||||
| 16 | subsection shall be that portion of the total interest | ||||||
| 17 | paid by the borrower with respect to such loan | ||||||
| 18 | attributable to the eligible property as calculated | ||||||
| 19 | under the previous sentence; | ||||||
| 20 | (N) Two times any contribution made during the | ||||||
| 21 | taxable year to a designated zone organization to the | ||||||
| 22 | extent that the contribution (i) qualifies as a | ||||||
| 23 | charitable contribution under subsection (c) of | ||||||
| 24 | Section 170 of the Internal Revenue Code and (ii) | ||||||
| 25 | must, by its terms, be used for a project approved by | ||||||
| 26 | the Department of Commerce and Economic Opportunity | ||||||
| |||||||
| |||||||
| 1 | under Section 11 of the Illinois Enterprise Zone Act | ||||||
| 2 | or under Section 10-10 of the River Edge Redevelopment | ||||||
| 3 | Zone Act. This subparagraph (N) is exempt from the | ||||||
| 4 | provisions of Section 250; | ||||||
| 5 | (O) An amount equal to: (i) 85% for taxable years | ||||||
| 6 | ending on or before December 31, 1992, or, a | ||||||
| 7 | percentage equal to the percentage allowable under | ||||||
| 8 | Section 243(a)(1) of the Internal Revenue Code of 1986 | ||||||
| 9 | for taxable years ending after December 31, 1992, of | ||||||
| 10 | the amount by which dividends included in taxable | ||||||
| 11 | income and received from a corporation that is not | ||||||
| 12 | created or organized under the laws of the United | ||||||
| 13 | States or any state or political subdivision thereof, | ||||||
| 14 | including, for taxable years ending on or after | ||||||
| 15 | December 31, 1988, dividends received or deemed | ||||||
| 16 | received or paid or deemed paid under Sections 951 | ||||||
| 17 | through 965 of the Internal Revenue Code, exceed the | ||||||
| 18 | amount of the modification provided under subparagraph | ||||||
| 19 | (G) of paragraph (2) of this subsection (b) which is | ||||||
| 20 | related to such dividends, and including, for taxable | ||||||
| 21 | years ending on or after December 31, 2008, dividends | ||||||
| 22 | received from a captive real estate investment trust; | ||||||
| 23 | plus (ii) 100% of the amount by which dividends, | ||||||
| 24 | included in taxable income and received, including, | ||||||
| 25 | for taxable years ending on or after December 31, | ||||||
| 26 | 1988, dividends received or deemed received or paid or | ||||||
| |||||||
| |||||||
| 1 | deemed paid under Sections 951 through 964 of the | ||||||
| 2 | Internal Revenue Code and including, for taxable years | ||||||
| 3 | ending on or after December 31, 2008, dividends | ||||||
| 4 | received from a captive real estate investment trust, | ||||||
| 5 | from any such corporation specified in clause (i) that | ||||||
| 6 | would but for the provisions of Section 1504(b)(3) of | ||||||
| 7 | the Internal Revenue Code be treated as a member of the | ||||||
| 8 | affiliated group which includes the dividend | ||||||
| 9 | recipient, exceed the amount of the modification | ||||||
| 10 | provided under subparagraph (G) of paragraph (2) of | ||||||
| 11 | this subsection (b) which is related to such | ||||||
| 12 | dividends. For taxable years ending on or after June | ||||||
| 13 | 30, 2021, (i) for purposes of this subparagraph, the | ||||||
| 14 | term "dividend" does not include any amount treated as | ||||||
| 15 | a dividend under Section 1248 of the Internal Revenue | ||||||
| 16 | Code, and (ii) this subparagraph shall not apply to | ||||||
| 17 | dividends for which a deduction is allowed under | ||||||
| 18 | Section 245(a) of the Internal Revenue Code. This | ||||||
| 19 | subparagraph (O) is exempt from the provisions of | ||||||
| 20 | Section 250 of this Act; | ||||||
| 21 | (P) An amount equal to any contribution made to a | ||||||
| 22 | job training project established pursuant to the Tax | ||||||
| 23 | Increment Allocation Redevelopment Act; | ||||||
| 24 | (Q) An amount equal to the amount of the deduction | ||||||
| 25 | used to compute the federal income tax credit for | ||||||
| 26 | restoration of substantial amounts held under claim of | ||||||
| |||||||
| |||||||
| 1 | right for the taxable year pursuant to Section 1341 of | ||||||
| 2 | the Internal Revenue Code; | ||||||
| 3 | (R) On and after July 20, 1999, in the case of an | ||||||
| 4 | attorney-in-fact with respect to whom an interinsurer | ||||||
| 5 | or a reciprocal insurer has made the election under | ||||||
| 6 | Section 835 of the Internal Revenue Code, 26 U.S.C. | ||||||
| 7 | 835, an amount equal to the excess, if any, of the | ||||||
| 8 | amounts paid or incurred by that interinsurer or | ||||||
| 9 | reciprocal insurer in the taxable year to the | ||||||
| 10 | attorney-in-fact over the deduction allowed to that | ||||||
| 11 | interinsurer or reciprocal insurer with respect to the | ||||||
| 12 | attorney-in-fact under Section 835(b) of the Internal | ||||||
| 13 | Revenue Code for the taxable year; the provisions of | ||||||
| 14 | this subparagraph are exempt from the provisions of | ||||||
| 15 | Section 250; | ||||||
| 16 | (S) For taxable years ending on or after December | ||||||
| 17 | 31, 1997, in the case of a Subchapter S corporation, an | ||||||
| 18 | amount equal to all amounts of income allocable to a | ||||||
| 19 | shareholder subject to the Personal Property Tax | ||||||
| 20 | Replacement Income Tax imposed by subsections (c) and | ||||||
| 21 | (d) of Section 201 of this Act, including amounts | ||||||
| 22 | allocable to organizations exempt from federal income | ||||||
| 23 | tax by reason of Section 501(a) of the Internal | ||||||
| 24 | Revenue Code. This subparagraph (S) is exempt from the | ||||||
| 25 | provisions of Section 250; | ||||||
| 26 | (T) For taxable years 2001 and thereafter, for the | ||||||
| |||||||
| |||||||
| 1 | taxable year in which the bonus depreciation deduction | ||||||
| 2 | is taken on the taxpayer's federal income tax return | ||||||
| 3 | under subsection (k) of Section 168 of the Internal | ||||||
| 4 | Revenue Code and for each applicable taxable year | ||||||
| 5 | thereafter, an amount equal to "x", where: | ||||||
| 6 | (1) "y" equals the amount of the depreciation | ||||||
| 7 | deduction taken for the taxable year on the | ||||||
| 8 | taxpayer's federal income tax return on property | ||||||
| 9 | for which the bonus depreciation deduction was | ||||||
| 10 | taken in any year under subsection (k) of Section | ||||||
| 11 | 168 of the Internal Revenue Code, but not | ||||||
| 12 | including the bonus depreciation deduction; | ||||||
| 13 | (2) for taxable years ending on or before | ||||||
| 14 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
| 15 | and then divided by 70 (or "y" multiplied by | ||||||
| 16 | 0.429); and | ||||||
| 17 | (3) for taxable years ending after December | ||||||
| 18 | 31, 2005: | ||||||
| 19 | (i) for property on which a bonus | ||||||
| 20 | depreciation deduction of 30% of the adjusted | ||||||
| 21 | basis was taken, "x" equals "y" multiplied by | ||||||
| 22 | 30 and then divided by 70 (or "y" multiplied | ||||||
| 23 | by 0.429); | ||||||
| 24 | (ii) for property on which a bonus | ||||||
| 25 | depreciation deduction of 50% of the adjusted | ||||||
| 26 | basis was taken, "x" equals "y" multiplied by | ||||||
| |||||||
| |||||||
| 1 | 1.0; | ||||||
| 2 | (iii) for property on which a bonus | ||||||
| 3 | depreciation deduction of 100% of the adjusted | ||||||
| 4 | basis was taken in a taxable year ending on or | ||||||
| 5 | after December 31, 2021, "x" equals the | ||||||
| 6 | depreciation deduction that would be allowed | ||||||
| 7 | on that property if the taxpayer had made the | ||||||
| 8 | election under Section 168(k)(7) of the | ||||||
| 9 | Internal Revenue Code to not claim bonus | ||||||
| 10 | depreciation on that property; and | ||||||
| 11 | (iv) for property on which a bonus | ||||||
| 12 | depreciation deduction of a percentage other | ||||||
| 13 | than 30%, 50% or 100% of the adjusted basis | ||||||
| 14 | was taken in a taxable year ending on or after | ||||||
| 15 | December 31, 2021, "x" equals "y" multiplied | ||||||
| 16 | by 100 times the percentage bonus depreciation | ||||||
| 17 | on the property (that is, 100(bonus%)) and | ||||||
| 18 | then divided by 100 times 1 minus the | ||||||
| 19 | percentage bonus depreciation on the property | ||||||
| 20 | (that is, 100(1-bonus%)). | ||||||
| 21 | The aggregate amount deducted under this | ||||||
| 22 | subparagraph in all taxable years for any one piece of | ||||||
| 23 | property may not exceed the amount of the bonus | ||||||
| 24 | depreciation deduction taken on that property on the | ||||||
| 25 | taxpayer's federal income tax return under subsection | ||||||
| 26 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
| |||||||
| |||||||
| 1 | subparagraph (T) is exempt from the provisions of | ||||||
| 2 | Section 250; | ||||||
| 3 | (U) If the taxpayer sells, transfers, abandons, or | ||||||
| 4 | otherwise disposes of property for which the taxpayer | ||||||
| 5 | was required in any taxable year to make an addition | ||||||
| 6 | modification under subparagraph (E-10), then an amount | ||||||
| 7 | equal to that addition modification. | ||||||
| 8 | If the taxpayer continues to own property through | ||||||
| 9 | the last day of the last tax year for which a | ||||||
| 10 | subtraction is allowed with respect to that property | ||||||
| 11 | under subparagraph (T) and for which the taxpayer was | ||||||
| 12 | required in any taxable year to make an addition | ||||||
| 13 | modification under subparagraph (E-10), then an amount | ||||||
| 14 | equal to that addition modification. | ||||||
| 15 | The taxpayer is allowed to take the deduction | ||||||
| 16 | under this subparagraph only once with respect to any | ||||||
| 17 | one piece of property. | ||||||
| 18 | This subparagraph (U) is exempt from the | ||||||
| 19 | provisions of Section 250; | ||||||
| 20 | (V) The amount of: (i) any interest income (net of | ||||||
| 21 | the deductions allocable thereto) taken into account | ||||||
| 22 | for the taxable year with respect to a transaction | ||||||
| 23 | with a taxpayer that is required to make an addition | ||||||
| 24 | modification with respect to such transaction under | ||||||
| 25 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
| 26 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
| |||||||
| |||||||
| 1 | the amount of such addition modification, (ii) any | ||||||
| 2 | income from intangible property (net of the deductions | ||||||
| 3 | allocable thereto) taken into account for the taxable | ||||||
| 4 | year with respect to a transaction with a taxpayer | ||||||
| 5 | that is required to make an addition modification with | ||||||
| 6 | respect to such transaction under Section | ||||||
| 7 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
| 8 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
| 9 | addition modification, and (iii) any insurance premium | ||||||
| 10 | income (net of deductions allocable thereto) taken | ||||||
| 11 | into account for the taxable year with respect to a | ||||||
| 12 | transaction with a taxpayer that is required to make | ||||||
| 13 | an addition modification with respect to such | ||||||
| 14 | transaction under Section 203(a)(2)(D-19), Section | ||||||
| 15 | 203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section | ||||||
| 16 | 203(d)(2)(D-9), but not to exceed the amount of that | ||||||
| 17 | addition modification. This subparagraph (V) is exempt | ||||||
| 18 | from the provisions of Section 250; | ||||||
| 19 | (W) An amount equal to the interest income taken | ||||||
| 20 | into account for the taxable year (net of the | ||||||
| 21 | deductions allocable thereto) with respect to | ||||||
| 22 | transactions with (i) a foreign person who would be a | ||||||
| 23 | member of the taxpayer's unitary business group but | ||||||
| 24 | for the fact that the foreign person's business | ||||||
| 25 | activity outside the United States is 80% or more of | ||||||
| 26 | that person's total business activity and (ii) for | ||||||
| |||||||
| |||||||
| 1 | taxable years ending on or after December 31, 2008, to | ||||||
| 2 | a person who would be a member of the same unitary | ||||||
| 3 | business group but for the fact that the person is | ||||||
| 4 | prohibited under Section 1501(a)(27) from being | ||||||
| 5 | included in the unitary business group because he or | ||||||
| 6 | she is ordinarily required to apportion business | ||||||
| 7 | income under different subsections of Section 304, but | ||||||
| 8 | not to exceed the addition modification required to be | ||||||
| 9 | made for the same taxable year under Section | ||||||
| 10 | 203(b)(2)(E-12) for interest paid, accrued, or | ||||||
| 11 | incurred, directly or indirectly, to the same person. | ||||||
| 12 | This subparagraph (W) is exempt from the provisions of | ||||||
| 13 | Section 250; | ||||||
| 14 | (X) An amount equal to the income from intangible | ||||||
| 15 | property taken into account for the taxable year (net | ||||||
| 16 | of the deductions allocable thereto) with respect to | ||||||
| 17 | transactions with (i) a foreign person who would be a | ||||||
| 18 | member of the taxpayer's unitary business group but | ||||||
| 19 | for the fact that the foreign person's business | ||||||
| 20 | activity outside the United States is 80% or more of | ||||||
| 21 | that person's total business activity and (ii) for | ||||||
| 22 | taxable years ending on or after December 31, 2008, to | ||||||
| 23 | a person who would be a member of the same unitary | ||||||
| 24 | business group but for the fact that the person is | ||||||
| 25 | prohibited under Section 1501(a)(27) from being | ||||||
| 26 | included in the unitary business group because he or | ||||||
| |||||||
| |||||||
| 1 | she is ordinarily required to apportion business | ||||||
| 2 | income under different subsections of Section 304, but | ||||||
| 3 | not to exceed the addition modification required to be | ||||||
| 4 | made for the same taxable year under Section | ||||||
| 5 | 203(b)(2)(E-13) for intangible expenses and costs | ||||||
| 6 | paid, accrued, or incurred, directly or indirectly, to | ||||||
| 7 | the same foreign person. This subparagraph (X) is | ||||||
| 8 | exempt from the provisions of Section 250; | ||||||
| 9 | (Y) For taxable years ending on or after December | ||||||
| 10 | 31, 2011, in the case of a taxpayer who was required to | ||||||
| 11 | add back any insurance premiums under Section | ||||||
| 12 | 203(b)(2)(E-14), such taxpayer may elect to subtract | ||||||
| 13 | that part of a reimbursement received from the | ||||||
| 14 | insurance company equal to the amount of the expense | ||||||
| 15 | or loss (including expenses incurred by the insurance | ||||||
| 16 | company) that would have been taken into account as a | ||||||
| 17 | deduction for federal income tax purposes if the | ||||||
| 18 | expense or loss had been uninsured. If a taxpayer | ||||||
| 19 | makes the election provided for by this subparagraph | ||||||
| 20 | (Y), the insurer to which the premiums were paid must | ||||||
| 21 | add back to income the amount subtracted by the | ||||||
| 22 | taxpayer pursuant to this subparagraph (Y). This | ||||||
| 23 | subparagraph (Y) is exempt from the provisions of | ||||||
| 24 | Section 250; | ||||||
| 25 | (Z) The difference between the nondeductible | ||||||
| 26 | controlled foreign corporation dividends under Section | ||||||
| |||||||
| |||||||
| 1 | 965(e)(3) of the Internal Revenue Code over the | ||||||
| 2 | taxable income of the taxpayer, computed without | ||||||
| 3 | regard to Section 965(e)(2)(A) of the Internal Revenue | ||||||
| 4 | Code, and without regard to any net operating loss | ||||||
| 5 | deduction. This subparagraph (Z) is exempt from the | ||||||
| 6 | provisions of Section 250; and | ||||||
| 7 | (AA) For taxable years beginning on or after | ||||||
| 8 | January 1, 2023, for any cannabis establishment | ||||||
| 9 | operating in this State and licensed under the | ||||||
| 10 | Cannabis Regulation and Tax Act or any cannabis | ||||||
| 11 | cultivation center or medical cannabis dispensing | ||||||
| 12 | organization operating in this State and licensed | ||||||
| 13 | under the Compassionate Use of Medical Cannabis | ||||||
| 14 | Program Act, an amount equal to the deductions that | ||||||
| 15 | were disallowed under Section 280E of the Internal | ||||||
| 16 | Revenue Code for the taxable year and that would not be | ||||||
| 17 | added back under this subsection. The provisions of | ||||||
| 18 | this subparagraph (AA) are exempt from the provisions | ||||||
| 19 | of Section 250. | ||||||
| 20 | (3) Special rule. For purposes of paragraph (2)(A), | ||||||
| 21 | "gross income" in the case of a life insurance company, | ||||||
| 22 | for tax years ending on and after December 31, 1994, and | ||||||
| 23 | prior to December 31, 2011, shall mean the gross | ||||||
| 24 | investment income for the taxable year and, for tax years | ||||||
| 25 | ending on or after December 31, 2011, shall mean all | ||||||
| 26 | amounts included in life insurance gross income under | ||||||
| |||||||
| |||||||
| 1 | Section 803(a)(3) of the Internal Revenue Code.
| ||||||
| 2 | (c) Trusts and estates. | ||||||
| 3 | (1) In general. In the case of a trust or estate, base | ||||||
| 4 | income means an amount equal to the taxpayer's taxable | ||||||
| 5 | income for the taxable year as modified by paragraph (2). | ||||||
| 6 | (2) Modifications. Subject to the provisions of | ||||||
| 7 | paragraph (3), the taxable income referred to in paragraph | ||||||
| 8 | (1) shall be modified by adding thereto the sum of the | ||||||
| 9 | following amounts: | ||||||
| 10 | (A) An amount equal to all amounts paid or accrued | ||||||
| 11 | to the taxpayer as interest or dividends during the | ||||||
| 12 | taxable year to the extent excluded from gross income | ||||||
| 13 | in the computation of taxable income; | ||||||
| 14 | (B) In the case of (i) an estate, $600; (ii) a | ||||||
| 15 | trust which, under its governing instrument, is | ||||||
| 16 | required to distribute all of its income currently, | ||||||
| 17 | $300; and (iii) any other trust, $100, but in each such | ||||||
| 18 | case, only to the extent such amount was deducted in | ||||||
| 19 | the computation of taxable income; | ||||||
| 20 | (C) An amount equal to the amount of tax imposed by | ||||||
| 21 | this Act to the extent deducted from gross income in | ||||||
| 22 | the computation of taxable income for the taxable | ||||||
| 23 | year; | ||||||
| 24 | (D) The amount of any net operating loss deduction | ||||||
| 25 | taken in arriving at taxable income, other than a net | ||||||
| |||||||
| |||||||
| 1 | operating loss carried forward from a taxable year | ||||||
| 2 | ending prior to December 31, 1986; | ||||||
| 3 | (E) For taxable years in which a net operating | ||||||
| 4 | loss carryback or carryforward from a taxable year | ||||||
| 5 | ending prior to December 31, 1986 is an element of | ||||||
| 6 | taxable income under paragraph (1) of subsection (e) | ||||||
| 7 | or subparagraph (E) of paragraph (2) of subsection | ||||||
| 8 | (e), the amount by which addition modifications other | ||||||
| 9 | than those provided by this subparagraph (E) exceeded | ||||||
| 10 | subtraction modifications in such taxable year, with | ||||||
| 11 | the following limitations applied in the order that | ||||||
| 12 | they are listed: | ||||||
| 13 | (i) the addition modification relating to the | ||||||
| 14 | net operating loss carried back or forward to the | ||||||
| 15 | taxable year from any taxable year ending prior to | ||||||
| 16 | December 31, 1986 shall be reduced by the amount | ||||||
| 17 | of addition modification under this subparagraph | ||||||
| 18 | (E) which related to that net operating loss and | ||||||
| 19 | which was taken into account in calculating the | ||||||
| 20 | base income of an earlier taxable year, and | ||||||
| 21 | (ii) the addition modification relating to the | ||||||
| 22 | net operating loss carried back or forward to the | ||||||
| 23 | taxable year from any taxable year ending prior to | ||||||
| 24 | December 31, 1986 shall not exceed the amount of | ||||||
| 25 | such carryback or carryforward; | ||||||
| 26 | For taxable years in which there is a net | ||||||
| |||||||
| |||||||
| 1 | operating loss carryback or carryforward from more | ||||||
| 2 | than one other taxable year ending prior to December | ||||||
| 3 | 31, 1986, the addition modification provided in this | ||||||
| 4 | subparagraph (E) shall be the sum of the amounts | ||||||
| 5 | computed independently under the preceding provisions | ||||||
| 6 | of this subparagraph (E) for each such taxable year; | ||||||
| 7 | (F) For taxable years ending on or after January | ||||||
| 8 | 1, 1989, an amount equal to the tax deducted pursuant | ||||||
| 9 | to Section 164 of the Internal Revenue Code if the | ||||||
| 10 | trust or estate is claiming the same tax for purposes | ||||||
| 11 | of the Illinois foreign tax credit under Section 601 | ||||||
| 12 | of this Act; | ||||||
| 13 | (G) An amount equal to the amount of the capital | ||||||
| 14 | gain deduction allowable under the Internal Revenue | ||||||
| 15 | Code, to the extent deducted from gross income in the | ||||||
| 16 | computation of taxable income; | ||||||
| 17 | (G-5) For taxable years ending after December 31, | ||||||
| 18 | 1997, an amount equal to any eligible remediation | ||||||
| 19 | costs that the trust or estate deducted in computing | ||||||
| 20 | adjusted gross income and for which the trust or | ||||||
| 21 | estate claims a credit under subsection (l) of Section | ||||||
| 22 | 201; | ||||||
| 23 | (G-10) For taxable years 2001 and thereafter, an | ||||||
| 24 | amount equal to the bonus depreciation deduction taken | ||||||
| 25 | on the taxpayer's federal income tax return for the | ||||||
| 26 | taxable year under subsection (k) of Section 168 of | ||||||
| |||||||
| |||||||
| 1 | the Internal Revenue Code; and | ||||||
| 2 | (G-11) If the taxpayer sells, transfers, abandons, | ||||||
| 3 | or otherwise disposes of property for which the | ||||||
| 4 | taxpayer was required in any taxable year to make an | ||||||
| 5 | addition modification under subparagraph (G-10), then | ||||||
| 6 | an amount equal to the aggregate amount of the | ||||||
| 7 | deductions taken in all taxable years under | ||||||
| 8 | subparagraph (R) with respect to that property. | ||||||
| 9 | If the taxpayer continues to own property through | ||||||
| 10 | the last day of the last tax year for which a | ||||||
| 11 | subtraction is allowed with respect to that property | ||||||
| 12 | under subparagraph (R) and for which the taxpayer was | ||||||
| 13 | allowed in any taxable year to make a subtraction | ||||||
| 14 | modification under subparagraph (R), then an amount | ||||||
| 15 | equal to that subtraction modification. | ||||||
| 16 | The taxpayer is required to make the addition | ||||||
| 17 | modification under this subparagraph only once with | ||||||
| 18 | respect to any one piece of property; | ||||||
| 19 | (G-12) An amount equal to the amount otherwise | ||||||
| 20 | allowed as a deduction in computing base income for | ||||||
| 21 | interest paid, accrued, or incurred, directly or | ||||||
| 22 | indirectly, (i) for taxable years ending on or after | ||||||
| 23 | December 31, 2004, to a foreign person who would be a | ||||||
| 24 | member of the same unitary business group but for the | ||||||
| 25 | fact that the foreign person's business activity | ||||||
| 26 | outside the United States is 80% or more of the foreign | ||||||
| |||||||
| |||||||
| 1 | person's total business activity and (ii) for taxable | ||||||
| 2 | years ending on or after December 31, 2008, to a person | ||||||
| 3 | who would be a member of the same unitary business | ||||||
| 4 | group but for the fact that the person is prohibited | ||||||
| 5 | under Section 1501(a)(27) from being included in the | ||||||
| 6 | unitary business group because he or she is ordinarily | ||||||
| 7 | required to apportion business income under different | ||||||
| 8 | subsections of Section 304. The addition modification | ||||||
| 9 | required by this subparagraph shall be reduced to the | ||||||
| 10 | extent that dividends were included in base income of | ||||||
| 11 | the unitary group for the same taxable year and | ||||||
| 12 | received by the taxpayer or by a member of the | ||||||
| 13 | taxpayer's unitary business group (including amounts | ||||||
| 14 | included in gross income pursuant to Sections 951 | ||||||
| 15 | through 964 of the Internal Revenue Code and amounts | ||||||
| 16 | included in gross income under Section 78 of the | ||||||
| 17 | Internal Revenue Code) with respect to the stock of | ||||||
| 18 | the same person to whom the interest was paid, | ||||||
| 19 | accrued, or incurred. | ||||||
| 20 | This paragraph shall not apply to the following: | ||||||
| 21 | (i) an item of interest paid, accrued, or | ||||||
| 22 | incurred, directly or indirectly, to a person who | ||||||
| 23 | is subject in a foreign country or state, other | ||||||
| 24 | than a state which requires mandatory unitary | ||||||
| 25 | reporting, to a tax on or measured by net income | ||||||
| 26 | with respect to such interest; or | ||||||
| |||||||
| |||||||
| 1 | (ii) an item of interest paid, accrued, or | ||||||
| 2 | incurred, directly or indirectly, to a person if | ||||||
| 3 | the taxpayer can establish, based on a | ||||||
| 4 | preponderance of the evidence, both of the | ||||||
| 5 | following: | ||||||
| 6 | (a) the person, during the same taxable | ||||||
| 7 | year, paid, accrued, or incurred, the interest | ||||||
| 8 | to a person that is not a related member, and | ||||||
| 9 | (b) the transaction giving rise to the | ||||||
| 10 | interest expense between the taxpayer and the | ||||||
| 11 | person did not have as a principal purpose the | ||||||
| 12 | avoidance of Illinois income tax, and is paid | ||||||
| 13 | pursuant to a contract or agreement that | ||||||
| 14 | reflects an arm's-length interest rate and | ||||||
| 15 | terms; or | ||||||
| 16 | (iii) the taxpayer can establish, based on | ||||||
| 17 | clear and convincing evidence, that the interest | ||||||
| 18 | paid, accrued, or incurred relates to a contract | ||||||
| 19 | or agreement entered into at arm's-length rates | ||||||
| 20 | and terms and the principal purpose for the | ||||||
| 21 | payment is not federal or Illinois tax avoidance; | ||||||
| 22 | or | ||||||
| 23 | (iv) an item of interest paid, accrued, or | ||||||
| 24 | incurred, directly or indirectly, to a person if | ||||||
| 25 | the taxpayer establishes by clear and convincing | ||||||
| 26 | evidence that the adjustments are unreasonable; or | ||||||
| |||||||
| |||||||
| 1 | if the taxpayer and the Director agree in writing | ||||||
| 2 | to the application or use of an alternative method | ||||||
| 3 | of apportionment under Section 304(f). | ||||||
| 4 | Nothing in this subsection shall preclude the | ||||||
| 5 | Director from making any other adjustment | ||||||
| 6 | otherwise allowed under Section 404 of this Act | ||||||
| 7 | for any tax year beginning after the effective | ||||||
| 8 | date of this amendment provided such adjustment is | ||||||
| 9 | made pursuant to regulation adopted by the | ||||||
| 10 | Department and such regulations provide methods | ||||||
| 11 | and standards by which the Department will utilize | ||||||
| 12 | its authority under Section 404 of this Act; | ||||||
| 13 | (G-13) An amount equal to the amount of intangible | ||||||
| 14 | expenses and costs otherwise allowed as a deduction in | ||||||
| 15 | computing base income, and that were paid, accrued, or | ||||||
| 16 | incurred, directly or indirectly, (i) for taxable | ||||||
| 17 | years ending on or after December 31, 2004, to a | ||||||
| 18 | foreign person who would be a member of the same | ||||||
| 19 | unitary business group but for the fact that the | ||||||
| 20 | foreign person's business activity outside the United | ||||||
| 21 | States is 80% or more of that person's total business | ||||||
| 22 | activity and (ii) for taxable years ending on or after | ||||||
| 23 | December 31, 2008, to a person who would be a member of | ||||||
| 24 | the same unitary business group but for the fact that | ||||||
| 25 | the person is prohibited under Section 1501(a)(27) | ||||||
| 26 | from being included in the unitary business group | ||||||
| |||||||
| |||||||
| 1 | because he or she is ordinarily required to apportion | ||||||
| 2 | business income under different subsections of Section | ||||||
| 3 | 304. The addition modification required by this | ||||||
| 4 | subparagraph shall be reduced to the extent that | ||||||
| 5 | dividends were included in base income of the unitary | ||||||
| 6 | group for the same taxable year and received by the | ||||||
| 7 | taxpayer or by a member of the taxpayer's unitary | ||||||
| 8 | business group (including amounts included in gross | ||||||
| 9 | income pursuant to Sections 951 through 964 of the | ||||||
| 10 | Internal Revenue Code and amounts included in gross | ||||||
| 11 | income under Section 78 of the Internal Revenue Code) | ||||||
| 12 | with respect to the stock of the same person to whom | ||||||
| 13 | the intangible expenses and costs were directly or | ||||||
| 14 | indirectly paid, incurred, or accrued. The preceding | ||||||
| 15 | sentence shall not apply to the extent that the same | ||||||
| 16 | dividends caused a reduction to the addition | ||||||
| 17 | modification required under Section 203(c)(2)(G-12) of | ||||||
| 18 | this Act. As used in this subparagraph, the term | ||||||
| 19 | "intangible expenses and costs" includes: (1) | ||||||
| 20 | expenses, losses, and costs for or related to the | ||||||
| 21 | direct or indirect acquisition, use, maintenance or | ||||||
| 22 | management, ownership, sale, exchange, or any other | ||||||
| 23 | disposition of intangible property; (2) losses | ||||||
| 24 | incurred, directly or indirectly, from factoring | ||||||
| 25 | transactions or discounting transactions; (3) royalty, | ||||||
| 26 | patent, technical, and copyright fees; (4) licensing | ||||||
| |||||||
| |||||||
| 1 | fees; and (5) other similar expenses and costs. For | ||||||
| 2 | purposes of this subparagraph, "intangible property" | ||||||
| 3 | includes patents, patent applications, trade names, | ||||||
| 4 | trademarks, service marks, copyrights, mask works, | ||||||
| 5 | trade secrets, and similar types of intangible assets. | ||||||
| 6 | This paragraph shall not apply to the following: | ||||||
| 7 | (i) any item of intangible expenses or costs | ||||||
| 8 | paid, accrued, or incurred, directly or | ||||||
| 9 | indirectly, from a transaction with a person who | ||||||
| 10 | is subject in a foreign country or state, other | ||||||
| 11 | than a state which requires mandatory unitary | ||||||
| 12 | reporting, to a tax on or measured by net income | ||||||
| 13 | with respect to such item; or | ||||||
| 14 | (ii) any item of intangible expense or cost | ||||||
| 15 | paid, accrued, or incurred, directly or | ||||||
| 16 | indirectly, if the taxpayer can establish, based | ||||||
| 17 | on a preponderance of the evidence, both of the | ||||||
| 18 | following: | ||||||
| 19 | (a) the person during the same taxable | ||||||
| 20 | year paid, accrued, or incurred, the | ||||||
| 21 | intangible expense or cost to a person that is | ||||||
| 22 | not a related member, and | ||||||
| 23 | (b) the transaction giving rise to the | ||||||
| 24 | intangible expense or cost between the | ||||||
| 25 | taxpayer and the person did not have as a | ||||||
| 26 | principal purpose the avoidance of Illinois | ||||||
| |||||||
| |||||||
| 1 | income tax, and is paid pursuant to a contract | ||||||
| 2 | or agreement that reflects arm's-length terms; | ||||||
| 3 | or | ||||||
| 4 | (iii) any item of intangible expense or cost | ||||||
| 5 | paid, accrued, or incurred, directly or | ||||||
| 6 | indirectly, from a transaction with a person if | ||||||
| 7 | the taxpayer establishes by clear and convincing | ||||||
| 8 | evidence, that the adjustments are unreasonable; | ||||||
| 9 | or if the taxpayer and the Director agree in | ||||||
| 10 | writing to the application or use of an | ||||||
| 11 | alternative method of apportionment under Section | ||||||
| 12 | 304(f); | ||||||
| 13 | Nothing in this subsection shall preclude the | ||||||
| 14 | Director from making any other adjustment | ||||||
| 15 | otherwise allowed under Section 404 of this Act | ||||||
| 16 | for any tax year beginning after the effective | ||||||
| 17 | date of this amendment provided such adjustment is | ||||||
| 18 | made pursuant to regulation adopted by the | ||||||
| 19 | Department and such regulations provide methods | ||||||
| 20 | and standards by which the Department will utilize | ||||||
| 21 | its authority under Section 404 of this Act; | ||||||
| 22 | (G-14) For taxable years ending on or after | ||||||
| 23 | December 31, 2008, an amount equal to the amount of | ||||||
| 24 | insurance premium expenses and costs otherwise allowed | ||||||
| 25 | as a deduction in computing base income, and that were | ||||||
| 26 | paid, accrued, or incurred, directly or indirectly, to | ||||||
| |||||||
| |||||||
| 1 | a person who would be a member of the same unitary | ||||||
| 2 | business group but for the fact that the person is | ||||||
| 3 | prohibited under Section 1501(a)(27) from being | ||||||
| 4 | included in the unitary business group because he or | ||||||
| 5 | she is ordinarily required to apportion business | ||||||
| 6 | income under different subsections of Section 304. The | ||||||
| 7 | addition modification required by this subparagraph | ||||||
| 8 | shall be reduced to the extent that dividends were | ||||||
| 9 | included in base income of the unitary group for the | ||||||
| 10 | same taxable year and received by the taxpayer or by a | ||||||
| 11 | member of the taxpayer's unitary business group | ||||||
| 12 | (including amounts included in gross income under | ||||||
| 13 | Sections 951 through 964 of the Internal Revenue Code | ||||||
| 14 | and amounts included in gross income under Section 78 | ||||||
| 15 | of the Internal Revenue Code) with respect to the | ||||||
| 16 | stock of the same person to whom the premiums and costs | ||||||
| 17 | were directly or indirectly paid, incurred, or | ||||||
| 18 | accrued. The preceding sentence does not apply to the | ||||||
| 19 | extent that the same dividends caused a reduction to | ||||||
| 20 | the addition modification required under Section | ||||||
| 21 | 203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this | ||||||
| 22 | Act; | ||||||
| 23 | (G-15) An amount equal to the credit allowable to | ||||||
| 24 | the taxpayer under Section 218(a) of this Act, | ||||||
| 25 | determined without regard to Section 218(c) of this | ||||||
| 26 | Act; | ||||||
| |||||||
| |||||||
| 1 | (G-16) For taxable years ending on or after | ||||||
| 2 | December 31, 2017, an amount equal to the deduction | ||||||
| 3 | allowed under Section 199 of the Internal Revenue Code | ||||||
| 4 | for the taxable year; | ||||||
| 5 | and by deducting from the total so obtained the sum of the | ||||||
| 6 | following amounts: | ||||||
| 7 | (H) An amount equal to all amounts included in | ||||||
| 8 | such total pursuant to the provisions of Sections | ||||||
| 9 | 402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 408 | ||||||
| 10 | of the Internal Revenue Code or included in such total | ||||||
| 11 | as distributions under the provisions of any | ||||||
| 12 | retirement or disability plan for employees of any | ||||||
| 13 | governmental agency or unit, or retirement payments to | ||||||
| 14 | retired partners, which payments are excluded in | ||||||
| 15 | computing net earnings from self employment by Section | ||||||
| 16 | 1402 of the Internal Revenue Code and regulations | ||||||
| 17 | adopted pursuant thereto; | ||||||
| 18 | (I) The valuation limitation amount; | ||||||
| 19 | (J) An amount equal to the amount of any tax | ||||||
| 20 | imposed by this Act which was refunded to the taxpayer | ||||||
| 21 | and included in such total for the taxable year; | ||||||
| 22 | (K) An amount equal to all amounts included in | ||||||
| 23 | taxable income as modified by subparagraphs (A), (B), | ||||||
| 24 | (C), (D), (E), (F) and (G) which are exempt from | ||||||
| 25 | taxation by this State either by reason of its | ||||||
| 26 | statutes or Constitution or by reason of the | ||||||
| |||||||
| |||||||
| 1 | Constitution, treaties or statutes of the United | ||||||
| 2 | States; provided that, in the case of any statute of | ||||||
| 3 | this State that exempts income derived from bonds or | ||||||
| 4 | other obligations from the tax imposed under this Act, | ||||||
| 5 | the amount exempted shall be the interest net of bond | ||||||
| 6 | premium amortization; | ||||||
| 7 | (L) With the exception of any amounts subtracted | ||||||
| 8 | under subparagraph (K), an amount equal to the sum of | ||||||
| 9 | all amounts disallowed as deductions by (i) Sections | ||||||
| 10 | 171(a)(2) and 265(a)(2) of the Internal Revenue Code, | ||||||
| 11 | and all amounts of expenses allocable to interest and | ||||||
| 12 | disallowed as deductions by Section 265(a)(1) of the | ||||||
| 13 | Internal Revenue Code; and (ii) for taxable years | ||||||
| 14 | ending on or after August 13, 1999, Sections | ||||||
| 15 | 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the | ||||||
| 16 | Internal Revenue Code, plus, (iii) for taxable years | ||||||
| 17 | ending on or after December 31, 2011, Section | ||||||
| 18 | 45G(e)(3) of the Internal Revenue Code and, for | ||||||
| 19 | taxable years ending on or after December 31, 2008, | ||||||
| 20 | any amount included in gross income under Section 87 | ||||||
| 21 | of the Internal Revenue Code; the provisions of this | ||||||
| 22 | subparagraph are exempt from the provisions of Section | ||||||
| 23 | 250; | ||||||
| 24 | (M) An amount equal to those dividends included in | ||||||
| 25 | such total which were paid by a corporation which | ||||||
| 26 | conducts business operations in a River Edge | ||||||
| |||||||
| |||||||
| 1 | Redevelopment Zone or zones created under the River | ||||||
| 2 | Edge Redevelopment Zone Act and conducts substantially | ||||||
| 3 | all of its operations in a River Edge Redevelopment | ||||||
| 4 | Zone or zones. This subparagraph (M) is exempt from | ||||||
| 5 | the provisions of Section 250; | ||||||
| 6 | (N) An amount equal to any contribution made to a | ||||||
| 7 | job training project established pursuant to the Tax | ||||||
| 8 | Increment Allocation Redevelopment Act; | ||||||
| 9 | (O) An amount equal to those dividends included in | ||||||
| 10 | such total that were paid by a corporation that | ||||||
| 11 | conducts business operations in a federally designated | ||||||
| 12 | Foreign Trade Zone or Sub-Zone and that is designated | ||||||
| 13 | a High Impact Business located in Illinois; provided | ||||||
| 14 | that dividends eligible for the deduction provided in | ||||||
| 15 | subparagraph (M) of paragraph (2) of this subsection | ||||||
| 16 | shall not be eligible for the deduction provided under | ||||||
| 17 | this subparagraph (O); | ||||||
| 18 | (P) An amount equal to the amount of the deduction | ||||||
| 19 | used to compute the federal income tax credit for | ||||||
| 20 | restoration of substantial amounts held under claim of | ||||||
| 21 | right for the taxable year pursuant to Section 1341 of | ||||||
| 22 | the Internal Revenue Code; | ||||||
| 23 | (Q) For taxable year 1999 and thereafter, an | ||||||
| 24 | amount equal to the amount of any (i) distributions, | ||||||
| 25 | to the extent includible in gross income for federal | ||||||
| 26 | income tax purposes, made to the taxpayer because of | ||||||
| |||||||
| |||||||
| 1 | his or her status as a victim of persecution for racial | ||||||
| 2 | or religious reasons by Nazi Germany or any other Axis | ||||||
| 3 | regime or as an heir of the victim and (ii) items of | ||||||
| 4 | income, to the extent includible in gross income for | ||||||
| 5 | federal income tax purposes, attributable to, derived | ||||||
| 6 | from or in any way related to assets stolen from, | ||||||
| 7 | hidden from, or otherwise lost to a victim of | ||||||
| 8 | persecution for racial or religious reasons by Nazi | ||||||
| 9 | Germany or any other Axis regime immediately prior to, | ||||||
| 10 | during, and immediately after World War II, including, | ||||||
| 11 | but not limited to, interest on the proceeds | ||||||
| 12 | receivable as insurance under policies issued to a | ||||||
| 13 | victim of persecution for racial or religious reasons | ||||||
| 14 | by Nazi Germany or any other Axis regime by European | ||||||
| 15 | insurance companies immediately prior to and during | ||||||
| 16 | World War II; provided, however, this subtraction from | ||||||
| 17 | federal adjusted gross income does not apply to assets | ||||||
| 18 | acquired with such assets or with the proceeds from | ||||||
| 19 | the sale of such assets; provided, further, this | ||||||
| 20 | paragraph shall only apply to a taxpayer who was the | ||||||
| 21 | first recipient of such assets after their recovery | ||||||
| 22 | and who is a victim of persecution for racial or | ||||||
| 23 | religious reasons by Nazi Germany or any other Axis | ||||||
| 24 | regime or as an heir of the victim. The amount of and | ||||||
| 25 | the eligibility for any public assistance, benefit, or | ||||||
| 26 | similar entitlement is not affected by the inclusion | ||||||
| |||||||
| |||||||
| 1 | of items (i) and (ii) of this paragraph in gross income | ||||||
| 2 | for federal income tax purposes. This paragraph is | ||||||
| 3 | exempt from the provisions of Section 250; | ||||||
| 4 | (R) For taxable years 2001 and thereafter, for the | ||||||
| 5 | taxable year in which the bonus depreciation deduction | ||||||
| 6 | is taken on the taxpayer's federal income tax return | ||||||
| 7 | under subsection (k) of Section 168 of the Internal | ||||||
| 8 | Revenue Code and for each applicable taxable year | ||||||
| 9 | thereafter, an amount equal to "x", where: | ||||||
| 10 | (1) "y" equals the amount of the depreciation | ||||||
| 11 | deduction taken for the taxable year on the | ||||||
| 12 | taxpayer's federal income tax return on property | ||||||
| 13 | for which the bonus depreciation deduction was | ||||||
| 14 | taken in any year under subsection (k) of Section | ||||||
| 15 | 168 of the Internal Revenue Code, but not | ||||||
| 16 | including the bonus depreciation deduction; | ||||||
| 17 | (2) for taxable years ending on or before | ||||||
| 18 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
| 19 | and then divided by 70 (or "y" multiplied by | ||||||
| 20 | 0.429); and | ||||||
| 21 | (3) for taxable years ending after December | ||||||
| 22 | 31, 2005: | ||||||
| 23 | (i) for property on which a bonus | ||||||
| 24 | depreciation deduction of 30% of the adjusted | ||||||
| 25 | basis was taken, "x" equals "y" multiplied by | ||||||
| 26 | 30 and then divided by 70 (or "y" multiplied | ||||||
| |||||||
| |||||||
| 1 | by 0.429); | ||||||
| 2 | (ii) for property on which a bonus | ||||||
| 3 | depreciation deduction of 50% of the adjusted | ||||||
| 4 | basis was taken, "x" equals "y" multiplied by | ||||||
| 5 | 1.0; | ||||||
| 6 | (iii) for property on which a bonus | ||||||
| 7 | depreciation deduction of 100% of the adjusted | ||||||
| 8 | basis was taken in a taxable year ending on or | ||||||
| 9 | after December 31, 2021, "x" equals the | ||||||
| 10 | depreciation deduction that would be allowed | ||||||
| 11 | on that property if the taxpayer had made the | ||||||
| 12 | election under Section 168(k)(7) of the | ||||||
| 13 | Internal Revenue Code to not claim bonus | ||||||
| 14 | depreciation on that property; and | ||||||
| 15 | (iv) for property on which a bonus | ||||||
| 16 | depreciation deduction of a percentage other | ||||||
| 17 | than 30%, 50% or 100% of the adjusted basis | ||||||
| 18 | was taken in a taxable year ending on or after | ||||||
| 19 | December 31, 2021, "x" equals "y" multiplied | ||||||
| 20 | by 100 times the percentage bonus depreciation | ||||||
| 21 | on the property (that is, 100(bonus%)) and | ||||||
| 22 | then divided by 100 times 1 minus the | ||||||
| 23 | percentage bonus depreciation on the property | ||||||
| 24 | (that is, 100(1-bonus%)). | ||||||
| 25 | The aggregate amount deducted under this | ||||||
| 26 | subparagraph in all taxable years for any one piece of | ||||||
| |||||||
| |||||||
| 1 | property may not exceed the amount of the bonus | ||||||
| 2 | depreciation deduction taken on that property on the | ||||||
| 3 | taxpayer's federal income tax return under subsection | ||||||
| 4 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
| 5 | subparagraph (R) is exempt from the provisions of | ||||||
| 6 | Section 250; | ||||||
| 7 | (S) If the taxpayer sells, transfers, abandons, or | ||||||
| 8 | otherwise disposes of property for which the taxpayer | ||||||
| 9 | was required in any taxable year to make an addition | ||||||
| 10 | modification under subparagraph (G-10), then an amount | ||||||
| 11 | equal to that addition modification. | ||||||
| 12 | If the taxpayer continues to own property through | ||||||
| 13 | the last day of the last tax year for which a | ||||||
| 14 | subtraction is allowed with respect to that property | ||||||
| 15 | under subparagraph (R) and for which the taxpayer was | ||||||
| 16 | required in any taxable year to make an addition | ||||||
| 17 | modification under subparagraph (G-10), then an amount | ||||||
| 18 | equal to that addition modification. | ||||||
| 19 | The taxpayer is allowed to take the deduction | ||||||
| 20 | under this subparagraph only once with respect to any | ||||||
| 21 | one piece of property. | ||||||
| 22 | This subparagraph (S) is exempt from the | ||||||
| 23 | provisions of Section 250; | ||||||
| 24 | (T) The amount of (i) any interest income (net of | ||||||
| 25 | the deductions allocable thereto) taken into account | ||||||
| 26 | for the taxable year with respect to a transaction | ||||||
| |||||||
| |||||||
| 1 | with a taxpayer that is required to make an addition | ||||||
| 2 | modification with respect to such transaction under | ||||||
| 3 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
| 4 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
| 5 | the amount of such addition modification and (ii) any | ||||||
| 6 | income from intangible property (net of the deductions | ||||||
| 7 | allocable thereto) taken into account for the taxable | ||||||
| 8 | year with respect to a transaction with a taxpayer | ||||||
| 9 | that is required to make an addition modification with | ||||||
| 10 | respect to such transaction under Section | ||||||
| 11 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
| 12 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
| 13 | addition modification. This subparagraph (T) is exempt | ||||||
| 14 | from the provisions of Section 250; | ||||||
| 15 | (U) An amount equal to the interest income taken | ||||||
| 16 | into account for the taxable year (net of the | ||||||
| 17 | deductions allocable thereto) with respect to | ||||||
| 18 | transactions with (i) a foreign person who would be a | ||||||
| 19 | member of the taxpayer's unitary business group but | ||||||
| 20 | for the fact the foreign person's business activity | ||||||
| 21 | outside the United States is 80% or more of that | ||||||
| 22 | person's total business activity and (ii) for taxable | ||||||
| 23 | years ending on or after December 31, 2008, to a person | ||||||
| 24 | who would be a member of the same unitary business | ||||||
| 25 | group but for the fact that the person is prohibited | ||||||
| 26 | under Section 1501(a)(27) from being included in the | ||||||
| |||||||
| |||||||
| 1 | unitary business group because he or she is ordinarily | ||||||
| 2 | required to apportion business income under different | ||||||
| 3 | subsections of Section 304, but not to exceed the | ||||||
| 4 | addition modification required to be made for the same | ||||||
| 5 | taxable year under Section 203(c)(2)(G-12) for | ||||||
| 6 | interest paid, accrued, or incurred, directly or | ||||||
| 7 | indirectly, to the same person. This subparagraph (U) | ||||||
| 8 | is exempt from the provisions of Section 250; | ||||||
| 9 | (V) An amount equal to the income from intangible | ||||||
| 10 | property taken into account for the taxable year (net | ||||||
| 11 | of the deductions allocable thereto) with respect to | ||||||
| 12 | transactions with (i) a foreign person who would be a | ||||||
| 13 | member of the taxpayer's unitary business group but | ||||||
| 14 | for the fact that the foreign person's business | ||||||
| 15 | activity outside the United States is 80% or more of | ||||||
| 16 | that person's total business activity and (ii) for | ||||||
| 17 | taxable years ending on or after December 31, 2008, to | ||||||
| 18 | a person who would be a member of the same unitary | ||||||
| 19 | business group but for the fact that the person is | ||||||
| 20 | prohibited under Section 1501(a)(27) from being | ||||||
| 21 | included in the unitary business group because he or | ||||||
| 22 | she is ordinarily required to apportion business | ||||||
| 23 | income under different subsections of Section 304, but | ||||||
| 24 | not to exceed the addition modification required to be | ||||||
| 25 | made for the same taxable year under Section | ||||||
| 26 | 203(c)(2)(G-13) for intangible expenses and costs | ||||||
| |||||||
| |||||||
| 1 | paid, accrued, or incurred, directly or indirectly, to | ||||||
| 2 | the same foreign person. This subparagraph (V) is | ||||||
| 3 | exempt from the provisions of Section 250; | ||||||
| 4 | (W) in the case of an estate, an amount equal to | ||||||
| 5 | all amounts included in such total pursuant to the | ||||||
| 6 | provisions of Section 111 of the Internal Revenue Code | ||||||
| 7 | as a recovery of items previously deducted by the | ||||||
| 8 | decedent from adjusted gross income in the computation | ||||||
| 9 | of taxable income. This subparagraph (W) is exempt | ||||||
| 10 | from Section 250; | ||||||
| 11 | (X) an amount equal to the refund included in such | ||||||
| 12 | total of any tax deducted for federal income tax | ||||||
| 13 | purposes, to the extent that deduction was added back | ||||||
| 14 | under subparagraph (F). This subparagraph (X) is | ||||||
| 15 | exempt from the provisions of Section 250; | ||||||
| 16 | (Y) For taxable years ending on or after December | ||||||
| 17 | 31, 2011, in the case of a taxpayer who was required to | ||||||
| 18 | add back any insurance premiums under Section | ||||||
| 19 | 203(c)(2)(G-14), such taxpayer may elect to subtract | ||||||
| 20 | that part of a reimbursement received from the | ||||||
| 21 | insurance company equal to the amount of the expense | ||||||
| 22 | or loss (including expenses incurred by the insurance | ||||||
| 23 | company) that would have been taken into account as a | ||||||
| 24 | deduction for federal income tax purposes if the | ||||||
| 25 | expense or loss had been uninsured. If a taxpayer | ||||||
| 26 | makes the election provided for by this subparagraph | ||||||
| |||||||
| |||||||
| 1 | (Y), the insurer to which the premiums were paid must | ||||||
| 2 | add back to income the amount subtracted by the | ||||||
| 3 | taxpayer pursuant to this subparagraph (Y). This | ||||||
| 4 | subparagraph (Y) is exempt from the provisions of | ||||||
| 5 | Section 250; | ||||||
| 6 | (Z) For taxable years beginning after December 31, | ||||||
| 7 | 2018 and before January 1, 2026, the amount of excess | ||||||
| 8 | business loss of the taxpayer disallowed as a | ||||||
| 9 | deduction by Section 461(l)(1)(B) of the Internal | ||||||
| 10 | Revenue Code; and | ||||||
| 11 | (AA) For taxable years beginning on or after | ||||||
| 12 | January 1, 2023, for any cannabis establishment | ||||||
| 13 | operating in this State and licensed under the | ||||||
| 14 | Cannabis Regulation and Tax Act or any cannabis | ||||||
| 15 | cultivation center or medical cannabis dispensing | ||||||
| 16 | organization operating in this State and licensed | ||||||
| 17 | under the Compassionate Use of Medical Cannabis | ||||||
| 18 | Program Act, an amount equal to the deductions that | ||||||
| 19 | were disallowed under Section 280E of the Internal | ||||||
| 20 | Revenue Code for the taxable year and that would not be | ||||||
| 21 | added back under this subsection. The provisions of | ||||||
| 22 | this subparagraph (AA) are exempt from the provisions | ||||||
| 23 | of Section 250. | ||||||
| 24 | (3) Limitation. The amount of any modification | ||||||
| 25 | otherwise required under this subsection shall, under | ||||||
| 26 | regulations prescribed by the Department, be adjusted by | ||||||
| |||||||
| |||||||
| 1 | any amounts included therein which were properly paid, | ||||||
| 2 | credited, or required to be distributed, or permanently | ||||||
| 3 | set aside for charitable purposes pursuant to Internal | ||||||
| 4 | Revenue Code Section 642(c) during the taxable year.
| ||||||
| 5 | (d) Partnerships. | ||||||
| 6 | (1) In general. In the case of a partnership, base | ||||||
| 7 | income means an amount equal to the taxpayer's taxable | ||||||
| 8 | income for the taxable year as modified by paragraph (2). | ||||||
| 9 | (2) Modifications. The taxable income referred to in | ||||||
| 10 | paragraph (1) shall be modified by adding thereto the sum | ||||||
| 11 | of the following amounts: | ||||||
| 12 | (A) An amount equal to all amounts paid or accrued | ||||||
| 13 | to the taxpayer as interest or dividends during the | ||||||
| 14 | taxable year to the extent excluded from gross income | ||||||
| 15 | in the computation of taxable income; | ||||||
| 16 | (B) An amount equal to the amount of tax imposed by | ||||||
| 17 | this Act to the extent deducted from gross income for | ||||||
| 18 | the taxable year; | ||||||
| 19 | (C) The amount of deductions allowed to the | ||||||
| 20 | partnership pursuant to Section 707 (c) of the | ||||||
| 21 | Internal Revenue Code in calculating its taxable | ||||||
| 22 | income; | ||||||
| 23 | (D) An amount equal to the amount of the capital | ||||||
| 24 | gain deduction allowable under the Internal Revenue | ||||||
| 25 | Code, to the extent deducted from gross income in the | ||||||
| |||||||
| |||||||
| 1 | computation of taxable income; | ||||||
| 2 | (D-5) For taxable years 2001 and thereafter, an | ||||||
| 3 | amount equal to the bonus depreciation deduction taken | ||||||
| 4 | on the taxpayer's federal income tax return for the | ||||||
| 5 | taxable year under subsection (k) of Section 168 of | ||||||
| 6 | the Internal Revenue Code; | ||||||
| 7 | (D-6) If the taxpayer sells, transfers, abandons, | ||||||
| 8 | or otherwise disposes of property for which the | ||||||
| 9 | taxpayer was required in any taxable year to make an | ||||||
| 10 | addition modification under subparagraph (D-5), then | ||||||
| 11 | an amount equal to the aggregate amount of the | ||||||
| 12 | deductions taken in all taxable years under | ||||||
| 13 | subparagraph (O) with respect to that property. | ||||||
| 14 | If the taxpayer continues to own property through | ||||||
| 15 | the last day of the last tax year for which a | ||||||
| 16 | subtraction is allowed with respect to that property | ||||||
| 17 | under subparagraph (O) and for which the taxpayer was | ||||||
| 18 | allowed in any taxable year to make a subtraction | ||||||
| 19 | modification under subparagraph (O), then an amount | ||||||
| 20 | equal to that subtraction modification. | ||||||
| 21 | The taxpayer is required to make the addition | ||||||
| 22 | modification under this subparagraph only once with | ||||||
| 23 | respect to any one piece of property; | ||||||
| 24 | (D-7) An amount equal to the amount otherwise | ||||||
| 25 | allowed as a deduction in computing base income for | ||||||
| 26 | interest paid, accrued, or incurred, directly or | ||||||
| |||||||
| |||||||
| 1 | indirectly, (i) for taxable years ending on or after | ||||||
| 2 | December 31, 2004, to a foreign person who would be a | ||||||
| 3 | member of the same unitary business group but for the | ||||||
| 4 | fact the foreign person's business activity outside | ||||||
| 5 | the United States is 80% or more of the foreign | ||||||
| 6 | person's total business activity and (ii) for taxable | ||||||
| 7 | years ending on or after December 31, 2008, to a person | ||||||
| 8 | who would be a member of the same unitary business | ||||||
| 9 | group but for the fact that the person is prohibited | ||||||
| 10 | under Section 1501(a)(27) from being included in the | ||||||
| 11 | unitary business group because he or she is ordinarily | ||||||
| 12 | required to apportion business income under different | ||||||
| 13 | subsections of Section 304. The addition modification | ||||||
| 14 | required by this subparagraph shall be reduced to the | ||||||
| 15 | extent that dividends were included in base income of | ||||||
| 16 | the unitary group for the same taxable year and | ||||||
| 17 | received by the taxpayer or by a member of the | ||||||
| 18 | taxpayer's unitary business group (including amounts | ||||||
| 19 | included in gross income pursuant to Sections 951 | ||||||
| 20 | through 964 of the Internal Revenue Code and amounts | ||||||
| 21 | included in gross income under Section 78 of the | ||||||
| 22 | Internal Revenue Code) with respect to the stock of | ||||||
| 23 | the same person to whom the interest was paid, | ||||||
| 24 | accrued, or incurred. | ||||||
| 25 | This paragraph shall not apply to the following: | ||||||
| 26 | (i) an item of interest paid, accrued, or | ||||||
| |||||||
| |||||||
| 1 | incurred, directly or indirectly, to a person who | ||||||
| 2 | is subject in a foreign country or state, other | ||||||
| 3 | than a state which requires mandatory unitary | ||||||
| 4 | reporting, to a tax on or measured by net income | ||||||
| 5 | with respect to such interest; or | ||||||
| 6 | (ii) an item of interest paid, accrued, or | ||||||
| 7 | incurred, directly or indirectly, to a person if | ||||||
| 8 | the taxpayer can establish, based on a | ||||||
| 9 | preponderance of the evidence, both of the | ||||||
| 10 | following: | ||||||
| 11 | (a) the person, during the same taxable | ||||||
| 12 | year, paid, accrued, or incurred, the interest | ||||||
| 13 | to a person that is not a related member, and | ||||||
| 14 | (b) the transaction giving rise to the | ||||||
| 15 | interest expense between the taxpayer and the | ||||||
| 16 | person did not have as a principal purpose the | ||||||
| 17 | avoidance of Illinois income tax, and is paid | ||||||
| 18 | pursuant to a contract or agreement that | ||||||
| 19 | reflects an arm's-length interest rate and | ||||||
| 20 | terms; or | ||||||
| 21 | (iii) the taxpayer can establish, based on | ||||||
| 22 | clear and convincing evidence, that the interest | ||||||
| 23 | paid, accrued, or incurred relates to a contract | ||||||
| 24 | or agreement entered into at arm's-length rates | ||||||
| 25 | and terms and the principal purpose for the | ||||||
| 26 | payment is not federal or Illinois tax avoidance; | ||||||
| |||||||
| |||||||
| 1 | or | ||||||
| 2 | (iv) an item of interest paid, accrued, or | ||||||
| 3 | incurred, directly or indirectly, to a person if | ||||||
| 4 | the taxpayer establishes by clear and convincing | ||||||
| 5 | evidence that the adjustments are unreasonable; or | ||||||
| 6 | if the taxpayer and the Director agree in writing | ||||||
| 7 | to the application or use of an alternative method | ||||||
| 8 | of apportionment under Section 304(f). | ||||||
| 9 | Nothing in this subsection shall preclude the | ||||||
| 10 | Director from making any other adjustment | ||||||
| 11 | otherwise allowed under Section 404 of this Act | ||||||
| 12 | for any tax year beginning after the effective | ||||||
| 13 | date of this amendment provided such adjustment is | ||||||
| 14 | made pursuant to regulation adopted by the | ||||||
| 15 | Department and such regulations provide methods | ||||||
| 16 | and standards by which the Department will utilize | ||||||
| 17 | its authority under Section 404 of this Act; and | ||||||
| 18 | (D-8) An amount equal to the amount of intangible | ||||||
| 19 | expenses and costs otherwise allowed as a deduction in | ||||||
| 20 | computing base income, and that were paid, accrued, or | ||||||
| 21 | incurred, directly or indirectly, (i) for taxable | ||||||
| 22 | years ending on or after December 31, 2004, to a | ||||||
| 23 | foreign person who would be a member of the same | ||||||
| 24 | unitary business group but for the fact that the | ||||||
| 25 | foreign person's business activity outside the United | ||||||
| 26 | States is 80% or more of that person's total business | ||||||
| |||||||
| |||||||
| 1 | activity and (ii) for taxable years ending on or after | ||||||
| 2 | December 31, 2008, to a person who would be a member of | ||||||
| 3 | the same unitary business group but for the fact that | ||||||
| 4 | the person is prohibited under Section 1501(a)(27) | ||||||
| 5 | from being included in the unitary business group | ||||||
| 6 | because he or she is ordinarily required to apportion | ||||||
| 7 | business income under different subsections of Section | ||||||
| 8 | 304. The addition modification required by this | ||||||
| 9 | subparagraph shall be reduced to the extent that | ||||||
| 10 | dividends were included in base income of the unitary | ||||||
| 11 | group for the same taxable year and received by the | ||||||
| 12 | taxpayer or by a member of the taxpayer's unitary | ||||||
| 13 | business group (including amounts included in gross | ||||||
| 14 | income pursuant to Sections 951 through 964 of the | ||||||
| 15 | Internal Revenue Code and amounts included in gross | ||||||
| 16 | income under Section 78 of the Internal Revenue Code) | ||||||
| 17 | with respect to the stock of the same person to whom | ||||||
| 18 | the intangible expenses and costs were directly or | ||||||
| 19 | indirectly paid, incurred or accrued. The preceding | ||||||
| 20 | sentence shall not apply to the extent that the same | ||||||
| 21 | dividends caused a reduction to the addition | ||||||
| 22 | modification required under Section 203(d)(2)(D-7) of | ||||||
| 23 | this Act. As used in this subparagraph, the term | ||||||
| 24 | "intangible expenses and costs" includes (1) expenses, | ||||||
| 25 | losses, and costs for, or related to, the direct or | ||||||
| 26 | indirect acquisition, use, maintenance or management, | ||||||
| |||||||
| |||||||
| 1 | ownership, sale, exchange, or any other disposition of | ||||||
| 2 | intangible property; (2) losses incurred, directly or | ||||||
| 3 | indirectly, from factoring transactions or discounting | ||||||
| 4 | transactions; (3) royalty, patent, technical, and | ||||||
| 5 | copyright fees; (4) licensing fees; and (5) other | ||||||
| 6 | similar expenses and costs. For purposes of this | ||||||
| 7 | subparagraph, "intangible property" includes patents, | ||||||
| 8 | patent applications, trade names, trademarks, service | ||||||
| 9 | marks, copyrights, mask works, trade secrets, and | ||||||
| 10 | similar types of intangible assets; | ||||||
| 11 | This paragraph shall not apply to the following: | ||||||
| 12 | (i) any item of intangible expenses or costs | ||||||
| 13 | paid, accrued, or incurred, directly or | ||||||
| 14 | indirectly, from a transaction with a person who | ||||||
| 15 | is subject in a foreign country or state, other | ||||||
| 16 | than a state which requires mandatory unitary | ||||||
| 17 | reporting, to a tax on or measured by net income | ||||||
| 18 | with respect to such item; or | ||||||
| 19 | (ii) any item of intangible expense or cost | ||||||
| 20 | paid, accrued, or incurred, directly or | ||||||
| 21 | indirectly, if the taxpayer can establish, based | ||||||
| 22 | on a preponderance of the evidence, both of the | ||||||
| 23 | following: | ||||||
| 24 | (a) the person during the same taxable | ||||||
| 25 | year paid, accrued, or incurred, the | ||||||
| 26 | intangible expense or cost to a person that is | ||||||
| |||||||
| |||||||
| 1 | not a related member, and | ||||||
| 2 | (b) the transaction giving rise to the | ||||||
| 3 | intangible expense or cost between the | ||||||
| 4 | taxpayer and the person did not have as a | ||||||
| 5 | principal purpose the avoidance of Illinois | ||||||
| 6 | income tax, and is paid pursuant to a contract | ||||||
| 7 | or agreement that reflects arm's-length terms; | ||||||
| 8 | or | ||||||
| 9 | (iii) any item of intangible expense or cost | ||||||
| 10 | paid, accrued, or incurred, directly or | ||||||
| 11 | indirectly, from a transaction with a person if | ||||||
| 12 | the taxpayer establishes by clear and convincing | ||||||
| 13 | evidence, that the adjustments are unreasonable; | ||||||
| 14 | or if the taxpayer and the Director agree in | ||||||
| 15 | writing to the application or use of an | ||||||
| 16 | alternative method of apportionment under Section | ||||||
| 17 | 304(f); | ||||||
| 18 | Nothing in this subsection shall preclude the | ||||||
| 19 | Director from making any other adjustment | ||||||
| 20 | otherwise allowed under Section 404 of this Act | ||||||
| 21 | for any tax year beginning after the effective | ||||||
| 22 | date of this amendment provided such adjustment is | ||||||
| 23 | made pursuant to regulation adopted by the | ||||||
| 24 | Department and such regulations provide methods | ||||||
| 25 | and standards by which the Department will utilize | ||||||
| 26 | its authority under Section 404 of this Act; | ||||||
| |||||||
| |||||||
| 1 | (D-9) For taxable years ending on or after | ||||||
| 2 | December 31, 2008, an amount equal to the amount of | ||||||
| 3 | insurance premium expenses and costs otherwise allowed | ||||||
| 4 | as a deduction in computing base income, and that were | ||||||
| 5 | paid, accrued, or incurred, directly or indirectly, to | ||||||
| 6 | a person who would be a member of the same unitary | ||||||
| 7 | business group but for the fact that the person is | ||||||
| 8 | prohibited under Section 1501(a)(27) from being | ||||||
| 9 | included in the unitary business group because he or | ||||||
| 10 | she is ordinarily required to apportion business | ||||||
| 11 | income under different subsections of Section 304. The | ||||||
| 12 | addition modification required by this subparagraph | ||||||
| 13 | shall be reduced to the extent that dividends were | ||||||
| 14 | included in base income of the unitary group for the | ||||||
| 15 | same taxable year and received by the taxpayer or by a | ||||||
| 16 | member of the taxpayer's unitary business group | ||||||
| 17 | (including amounts included in gross income under | ||||||
| 18 | Sections 951 through 964 of the Internal Revenue Code | ||||||
| 19 | and amounts included in gross income under Section 78 | ||||||
| 20 | of the Internal Revenue Code) with respect to the | ||||||
| 21 | stock of the same person to whom the premiums and costs | ||||||
| 22 | were directly or indirectly paid, incurred, or | ||||||
| 23 | accrued. The preceding sentence does not apply to the | ||||||
| 24 | extent that the same dividends caused a reduction to | ||||||
| 25 | the addition modification required under Section | ||||||
| 26 | 203(d)(2)(D-7) or Section 203(d)(2)(D-8) of this Act; | ||||||
| |||||||
| |||||||
| 1 | (D-10) An amount equal to the credit allowable to | ||||||
| 2 | the taxpayer under Section 218(a) of this Act, | ||||||
| 3 | determined without regard to Section 218(c) of this | ||||||
| 4 | Act; | ||||||
| 5 | (D-11) For taxable years ending on or after | ||||||
| 6 | December 31, 2017, an amount equal to the deduction | ||||||
| 7 | allowed under Section 199 of the Internal Revenue Code | ||||||
| 8 | for the taxable year; | ||||||
| 9 | and by deducting from the total so obtained the following | ||||||
| 10 | amounts: | ||||||
| 11 | (E) The valuation limitation amount; | ||||||
| 12 | (F) An amount equal to the amount of any tax | ||||||
| 13 | imposed by this Act which was refunded to the taxpayer | ||||||
| 14 | and included in such total for the taxable year; | ||||||
| 15 | (G) An amount equal to all amounts included in | ||||||
| 16 | taxable income as modified by subparagraphs (A), (B), | ||||||
| 17 | (C) and (D) which are exempt from taxation by this | ||||||
| 18 | State either by reason of its statutes or Constitution | ||||||
| 19 | or by reason of the Constitution, treaties or statutes | ||||||
| 20 | of the United States; provided that, in the case of any | ||||||
| 21 | statute of this State that exempts income derived from | ||||||
| 22 | bonds or other obligations from the tax imposed under | ||||||
| 23 | this Act, the amount exempted shall be the interest | ||||||
| 24 | net of bond premium amortization; | ||||||
| 25 | (H) Any income of the partnership which | ||||||
| 26 | constitutes personal service income as defined in | ||||||
| |||||||
| |||||||
| 1 | Section 1348(b)(1) of the Internal Revenue Code (as in | ||||||
| 2 | effect December 31, 1981) or a reasonable allowance | ||||||
| 3 | for compensation paid or accrued for services rendered | ||||||
| 4 | by partners to the partnership, whichever is greater; | ||||||
| 5 | this subparagraph (H) is exempt from the provisions of | ||||||
| 6 | Section 250; | ||||||
| 7 | (I) An amount equal to all amounts of income | ||||||
| 8 | distributable to an entity subject to the Personal | ||||||
| 9 | Property Tax Replacement Income Tax imposed by | ||||||
| 10 | subsections (c) and (d) of Section 201 of this Act | ||||||
| 11 | including amounts distributable to organizations | ||||||
| 12 | exempt from federal income tax by reason of Section | ||||||
| 13 | 501(a) of the Internal Revenue Code; this subparagraph | ||||||
| 14 | (I) is exempt from the provisions of Section 250; | ||||||
| 15 | (J) With the exception of any amounts subtracted | ||||||
| 16 | under subparagraph (G), an amount equal to the sum of | ||||||
| 17 | all amounts disallowed as deductions by (i) Sections | ||||||
| 18 | 171(a)(2) and 265(a)(2) of the Internal Revenue Code, | ||||||
| 19 | and all amounts of expenses allocable to interest and | ||||||
| 20 | disallowed as deductions by Section 265(a)(1) of the | ||||||
| 21 | Internal Revenue Code; and (ii) for taxable years | ||||||
| 22 | ending on or after August 13, 1999, Sections | ||||||
| 23 | 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the | ||||||
| 24 | Internal Revenue Code, plus, (iii) for taxable years | ||||||
| 25 | ending on or after December 31, 2011, Section | ||||||
| 26 | 45G(e)(3) of the Internal Revenue Code and, for | ||||||
| |||||||
| |||||||
| 1 | taxable years ending on or after December 31, 2008, | ||||||
| 2 | any amount included in gross income under Section 87 | ||||||
| 3 | of the Internal Revenue Code; the provisions of this | ||||||
| 4 | subparagraph are exempt from the provisions of Section | ||||||
| 5 | 250; | ||||||
| 6 | (K) An amount equal to those dividends included in | ||||||
| 7 | such total which were paid by a corporation which | ||||||
| 8 | conducts business operations in a River Edge | ||||||
| 9 | Redevelopment Zone or zones created under the River | ||||||
| 10 | Edge Redevelopment Zone Act and conducts substantially | ||||||
| 11 | all of its operations from a River Edge Redevelopment | ||||||
| 12 | Zone or zones. This subparagraph (K) is exempt from | ||||||
| 13 | the provisions of Section 250; | ||||||
| 14 | (L) An amount equal to any contribution made to a | ||||||
| 15 | job training project established pursuant to the Real | ||||||
| 16 | Property Tax Increment Allocation Redevelopment Act; | ||||||
| 17 | (M) An amount equal to those dividends included in | ||||||
| 18 | such total that were paid by a corporation that | ||||||
| 19 | conducts business operations in a federally designated | ||||||
| 20 | Foreign Trade Zone or Sub-Zone and that is designated | ||||||
| 21 | a High Impact Business located in Illinois; provided | ||||||
| 22 | that dividends eligible for the deduction provided in | ||||||
| 23 | subparagraph (K) of paragraph (2) of this subsection | ||||||
| 24 | shall not be eligible for the deduction provided under | ||||||
| 25 | this subparagraph (M); | ||||||
| 26 | (N) An amount equal to the amount of the deduction | ||||||
| |||||||
| |||||||
| 1 | used to compute the federal income tax credit for | ||||||
| 2 | restoration of substantial amounts held under claim of | ||||||
| 3 | right for the taxable year pursuant to Section 1341 of | ||||||
| 4 | the Internal Revenue Code; | ||||||
| 5 | (O) For taxable years 2001 and thereafter, for the | ||||||
| 6 | taxable year in which the bonus depreciation deduction | ||||||
| 7 | is taken on the taxpayer's federal income tax return | ||||||
| 8 | under subsection (k) of Section 168 of the Internal | ||||||
| 9 | Revenue Code and for each applicable taxable year | ||||||
| 10 | thereafter, an amount equal to "x", where: | ||||||
| 11 | (1) "y" equals the amount of the depreciation | ||||||
| 12 | deduction taken for the taxable year on the | ||||||
| 13 | taxpayer's federal income tax return on property | ||||||
| 14 | for which the bonus depreciation deduction was | ||||||
| 15 | taken in any year under subsection (k) of Section | ||||||
| 16 | 168 of the Internal Revenue Code, but not | ||||||
| 17 | including the bonus depreciation deduction; | ||||||
| 18 | (2) for taxable years ending on or before | ||||||
| 19 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
| 20 | and then divided by 70 (or "y" multiplied by | ||||||
| 21 | 0.429); and | ||||||
| 22 | (3) for taxable years ending after December | ||||||
| 23 | 31, 2005: | ||||||
| 24 | (i) for property on which a bonus | ||||||
| 25 | depreciation deduction of 30% of the adjusted | ||||||
| 26 | basis was taken, "x" equals "y" multiplied by | ||||||
| |||||||
| |||||||
| 1 | 30 and then divided by 70 (or "y" multiplied | ||||||
| 2 | by 0.429); | ||||||
| 3 | (ii) for property on which a bonus | ||||||
| 4 | depreciation deduction of 50% of the adjusted | ||||||
| 5 | basis was taken, "x" equals "y" multiplied by | ||||||
| 6 | 1.0; | ||||||
| 7 | (iii) for property on which a bonus | ||||||
| 8 | depreciation deduction of 100% of the adjusted | ||||||
| 9 | basis was taken in a taxable year ending on or | ||||||
| 10 | after December 31, 2021, "x" equals the | ||||||
| 11 | depreciation deduction that would be allowed | ||||||
| 12 | on that property if the taxpayer had made the | ||||||
| 13 | election under Section 168(k)(7) of the | ||||||
| 14 | Internal Revenue Code to not claim bonus | ||||||
| 15 | depreciation on that property; and | ||||||
| 16 | (iv) for property on which a bonus | ||||||
| 17 | depreciation deduction of a percentage other | ||||||
| 18 | than 30%, 50% or 100% of the adjusted basis | ||||||
| 19 | was taken in a taxable year ending on or after | ||||||
| 20 | December 31, 2021, "x" equals "y" multiplied | ||||||
| 21 | by 100 times the percentage bonus depreciation | ||||||
| 22 | on the property (that is, 100(bonus%)) and | ||||||
| 23 | then divided by 100 times 1 minus the | ||||||
| 24 | percentage bonus depreciation on the property | ||||||
| 25 | (that is, 100(1-bonus%)). | ||||||
| 26 | The aggregate amount deducted under this | ||||||
| |||||||
| |||||||
| 1 | subparagraph in all taxable years for any one piece of | ||||||
| 2 | property may not exceed the amount of the bonus | ||||||
| 3 | depreciation deduction taken on that property on the | ||||||
| 4 | taxpayer's federal income tax return under subsection | ||||||
| 5 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
| 6 | subparagraph (O) is exempt from the provisions of | ||||||
| 7 | Section 250; | ||||||
| 8 | (P) If the taxpayer sells, transfers, abandons, or | ||||||
| 9 | otherwise disposes of property for which the taxpayer | ||||||
| 10 | was required in any taxable year to make an addition | ||||||
| 11 | modification under subparagraph (D-5), then an amount | ||||||
| 12 | equal to that addition modification. | ||||||
| 13 | If the taxpayer continues to own property through | ||||||
| 14 | the last day of the last tax year for which a | ||||||
| 15 | subtraction is allowed with respect to that property | ||||||
| 16 | under subparagraph (O) and for which the taxpayer was | ||||||
| 17 | required in any taxable year to make an addition | ||||||
| 18 | modification under subparagraph (D-5), then an amount | ||||||
| 19 | equal to that addition modification. | ||||||
| 20 | The taxpayer is allowed to take the deduction | ||||||
| 21 | under this subparagraph only once with respect to any | ||||||
| 22 | one piece of property. | ||||||
| 23 | This subparagraph (P) is exempt from the | ||||||
| 24 | provisions of Section 250; | ||||||
| 25 | (Q) The amount of (i) any interest income (net of | ||||||
| 26 | the deductions allocable thereto) taken into account | ||||||
| |||||||
| |||||||
| 1 | for the taxable year with respect to a transaction | ||||||
| 2 | with a taxpayer that is required to make an addition | ||||||
| 3 | modification with respect to such transaction under | ||||||
| 4 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
| 5 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
| 6 | the amount of such addition modification and (ii) any | ||||||
| 7 | income from intangible property (net of the deductions | ||||||
| 8 | allocable thereto) taken into account for the taxable | ||||||
| 9 | year with respect to a transaction with a taxpayer | ||||||
| 10 | that is required to make an addition modification with | ||||||
| 11 | respect to such transaction under Section | ||||||
| 12 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
| 13 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
| 14 | addition modification. This subparagraph (Q) is exempt | ||||||
| 15 | from Section 250; | ||||||
| 16 | (R) An amount equal to the interest income taken | ||||||
| 17 | into account for the taxable year (net of the | ||||||
| 18 | deductions allocable thereto) with respect to | ||||||
| 19 | transactions with (i) a foreign person who would be a | ||||||
| 20 | member of the taxpayer's unitary business group but | ||||||
| 21 | for the fact that the foreign person's business | ||||||
| 22 | activity outside the United States is 80% or more of | ||||||
| 23 | that person's total business activity and (ii) for | ||||||
| 24 | taxable years ending on or after December 31, 2008, to | ||||||
| 25 | a person who would be a member of the same unitary | ||||||
| 26 | business group but for the fact that the person is | ||||||
| |||||||
| |||||||
| 1 | prohibited under Section 1501(a)(27) from being | ||||||
| 2 | included in the unitary business group because he or | ||||||
| 3 | she is ordinarily required to apportion business | ||||||
| 4 | income under different subsections of Section 304, but | ||||||
| 5 | not to exceed the addition modification required to be | ||||||
| 6 | made for the same taxable year under Section | ||||||
| 7 | 203(d)(2)(D-7) for interest paid, accrued, or | ||||||
| 8 | incurred, directly or indirectly, to the same person. | ||||||
| 9 | This subparagraph (R) is exempt from Section 250; | ||||||
| 10 | (S) An amount equal to the income from intangible | ||||||
| 11 | property taken into account for the taxable year (net | ||||||
| 12 | of the deductions allocable thereto) with respect to | ||||||
| 13 | transactions with (i) a foreign person who would be a | ||||||
| 14 | member of the taxpayer's unitary business group but | ||||||
| 15 | for the fact that the foreign person's business | ||||||
| 16 | activity outside the United States is 80% or more of | ||||||
| 17 | that person's total business activity and (ii) for | ||||||
| 18 | taxable years ending on or after December 31, 2008, to | ||||||
| 19 | a person who would be a member of the same unitary | ||||||
| 20 | business group but for the fact that the person is | ||||||
| 21 | prohibited under Section 1501(a)(27) from being | ||||||
| 22 | included in the unitary business group because he or | ||||||
| 23 | she is ordinarily required to apportion business | ||||||
| 24 | income under different subsections of Section 304, but | ||||||
| 25 | not to exceed the addition modification required to be | ||||||
| 26 | made for the same taxable year under Section | ||||||
| |||||||
| |||||||
| 1 | 203(d)(2)(D-8) for intangible expenses and costs paid, | ||||||
| 2 | accrued, or incurred, directly or indirectly, to the | ||||||
| 3 | same person. This subparagraph (S) is exempt from | ||||||
| 4 | Section 250; | ||||||
| 5 | (T) For taxable years ending on or after December | ||||||
| 6 | 31, 2011, in the case of a taxpayer who was required to | ||||||
| 7 | add back any insurance premiums under Section | ||||||
| 8 | 203(d)(2)(D-9), such taxpayer may elect to subtract | ||||||
| 9 | that part of a reimbursement received from the | ||||||
| 10 | insurance company equal to the amount of the expense | ||||||
| 11 | or loss (including expenses incurred by the insurance | ||||||
| 12 | company) that would have been taken into account as a | ||||||
| 13 | deduction for federal income tax purposes if the | ||||||
| 14 | expense or loss had been uninsured. If a taxpayer | ||||||
| 15 | makes the election provided for by this subparagraph | ||||||
| 16 | (T), the insurer to which the premiums were paid must | ||||||
| 17 | add back to income the amount subtracted by the | ||||||
| 18 | taxpayer pursuant to this subparagraph (T). This | ||||||
| 19 | subparagraph (T) is exempt from the provisions of | ||||||
| 20 | Section 250; and | ||||||
| 21 | (U) For taxable years beginning on or after | ||||||
| 22 | January 1, 2023, for any cannabis establishment | ||||||
| 23 | operating in this State and licensed under the | ||||||
| 24 | Cannabis Regulation and Tax Act or any cannabis | ||||||
| 25 | cultivation center or medical cannabis dispensing | ||||||
| 26 | organization operating in this State and licensed | ||||||
| |||||||
| |||||||
| 1 | under the Compassionate Use of Medical Cannabis | ||||||
| 2 | Program Act, an amount equal to the deductions that | ||||||
| 3 | were disallowed under Section 280E of the Internal | ||||||
| 4 | Revenue Code for the taxable year and that would not be | ||||||
| 5 | added back under this subsection. The provisions of | ||||||
| 6 | this subparagraph (U) are exempt from the provisions | ||||||
| 7 | of Section 250.
| ||||||
| 8 | (e) Gross income; adjusted gross income; taxable income. | ||||||
| 9 | (1) In general. Subject to the provisions of paragraph | ||||||
| 10 | (2) and subsection (b)(3), for purposes of this Section | ||||||
| 11 | and Section 803(e), a taxpayer's gross income, adjusted | ||||||
| 12 | gross income, or taxable income for the taxable year shall | ||||||
| 13 | mean the amount of gross income, adjusted gross income or | ||||||
| 14 | taxable income properly reportable for federal income tax | ||||||
| 15 | purposes for the taxable year under the provisions of the | ||||||
| 16 | Internal Revenue Code. Taxable income may be less than | ||||||
| 17 | zero. However, for taxable years ending on or after | ||||||
| 18 | December 31, 1986, net operating loss carryforwards from | ||||||
| 19 | taxable years ending prior to December 31, 1986, may not | ||||||
| 20 | exceed the sum of federal taxable income for the taxable | ||||||
| 21 | year before net operating loss deduction, plus the excess | ||||||
| 22 | of addition modifications over subtraction modifications | ||||||
| 23 | for the taxable year. For taxable years ending prior to | ||||||
| 24 | December 31, 1986, taxable income may never be an amount | ||||||
| 25 | in excess of the net operating loss for the taxable year as | ||||||
| |||||||
| |||||||
| 1 | defined in subsections (c) and (d) of Section 172 of the | ||||||
| 2 | Internal Revenue Code, provided that when taxable income | ||||||
| 3 | of a corporation (other than a Subchapter S corporation), | ||||||
| 4 | trust, or estate is less than zero and addition | ||||||
| 5 | modifications, other than those provided by subparagraph | ||||||
| 6 | (E) of paragraph (2) of subsection (b) for corporations or | ||||||
| 7 | subparagraph (E) of paragraph (2) of subsection (c) for | ||||||
| 8 | trusts and estates, exceed subtraction modifications, an | ||||||
| 9 | addition modification must be made under those | ||||||
| 10 | subparagraphs for any other taxable year to which the | ||||||
| 11 | taxable income less than zero (net operating loss) is | ||||||
| 12 | applied under Section 172 of the Internal Revenue Code or | ||||||
| 13 | under subparagraph (E) of paragraph (2) of this subsection | ||||||
| 14 | (e) applied in conjunction with Section 172 of the | ||||||
| 15 | Internal Revenue Code. | ||||||
| 16 | (2) Special rule. For purposes of paragraph (1) of | ||||||
| 17 | this subsection, the taxable income properly reportable | ||||||
| 18 | for federal income tax purposes shall mean: | ||||||
| 19 | (A) Certain life insurance companies. In the case | ||||||
| 20 | of a life insurance company subject to the tax imposed | ||||||
| 21 | by Section 801 of the Internal Revenue Code, life | ||||||
| 22 | insurance company taxable income, plus the amount of | ||||||
| 23 | distribution from pre-1984 policyholder surplus | ||||||
| 24 | accounts as calculated under Section 815a of the | ||||||
| 25 | Internal Revenue Code; | ||||||
| 26 | (B) Certain other insurance companies. In the case | ||||||
| |||||||
| |||||||
| 1 | of mutual insurance companies subject to the tax | ||||||
| 2 | imposed by Section 831 of the Internal Revenue Code, | ||||||
| 3 | insurance company taxable income; | ||||||
| 4 | (C) Regulated investment companies. In the case of | ||||||
| 5 | a regulated investment company subject to the tax | ||||||
| 6 | imposed by Section 852 of the Internal Revenue Code, | ||||||
| 7 | investment company taxable income; | ||||||
| 8 | (D) Real estate investment trusts. In the case of | ||||||
| 9 | a real estate investment trust subject to the tax | ||||||
| 10 | imposed by Section 857 of the Internal Revenue Code, | ||||||
| 11 | real estate investment trust taxable income; | ||||||
| 12 | (E) Consolidated corporations. In the case of a | ||||||
| 13 | corporation which is a member of an affiliated group | ||||||
| 14 | of corporations filing a consolidated income tax | ||||||
| 15 | return for the taxable year for federal income tax | ||||||
| 16 | purposes, taxable income determined as if such | ||||||
| 17 | corporation had filed a separate return for federal | ||||||
| 18 | income tax purposes for the taxable year and each | ||||||
| 19 | preceding taxable year for which it was a member of an | ||||||
| 20 | affiliated group. For purposes of this subparagraph, | ||||||
| 21 | the taxpayer's separate taxable income shall be | ||||||
| 22 | determined as if the election provided by Section | ||||||
| 23 | 243(b)(2) of the Internal Revenue Code had been in | ||||||
| 24 | effect for all such years; | ||||||
| 25 | (F) Cooperatives. In the case of a cooperative | ||||||
| 26 | corporation or association, the taxable income of such | ||||||
| |||||||
| |||||||
| 1 | organization determined in accordance with the | ||||||
| 2 | provisions of Section 1381 through 1388 of the | ||||||
| 3 | Internal Revenue Code, but without regard to the | ||||||
| 4 | prohibition against offsetting losses from patronage | ||||||
| 5 | activities against income from nonpatronage | ||||||
| 6 | activities; except that a cooperative corporation or | ||||||
| 7 | association may make an election to follow its federal | ||||||
| 8 | income tax treatment of patronage losses and | ||||||
| 9 | nonpatronage losses. In the event such election is | ||||||
| 10 | made, such losses shall be computed and carried over | ||||||
| 11 | in a manner consistent with subsection (a) of Section | ||||||
| 12 | 207 of this Act and apportioned by the apportionment | ||||||
| 13 | factor reported by the cooperative on its Illinois | ||||||
| 14 | income tax return filed for the taxable year in which | ||||||
| 15 | the losses are incurred. The election shall be | ||||||
| 16 | effective for all taxable years with original returns | ||||||
| 17 | due on or after the date of the election. In addition, | ||||||
| 18 | the cooperative may file an amended return or returns, | ||||||
| 19 | as allowed under this Act, to provide that the | ||||||
| 20 | election shall be effective for losses incurred or | ||||||
| 21 | carried forward for taxable years occurring prior to | ||||||
| 22 | the date of the election. Once made, the election may | ||||||
| 23 | only be revoked upon approval of the Director. The | ||||||
| 24 | Department shall adopt rules setting forth | ||||||
| 25 | requirements for documenting the elections and any | ||||||
| 26 | resulting Illinois net loss and the standards to be | ||||||
| |||||||
| |||||||
| 1 | used by the Director in evaluating requests to revoke | ||||||
| 2 | elections. Public Act 96-932 is declaratory of | ||||||
| 3 | existing law; | ||||||
| 4 | (G) Subchapter S corporations. In the case of: (i) | ||||||
| 5 | a Subchapter S corporation for which there is in | ||||||
| 6 | effect an election for the taxable year under Section | ||||||
| 7 | 1362 of the Internal Revenue Code, the taxable income | ||||||
| 8 | of such corporation determined in accordance with | ||||||
| 9 | Section 1363(b) of the Internal Revenue Code, except | ||||||
| 10 | that taxable income shall take into account those | ||||||
| 11 | items which are required by Section 1363(b)(1) of the | ||||||
| 12 | Internal Revenue Code to be separately stated; and | ||||||
| 13 | (ii) a Subchapter S corporation for which there is in | ||||||
| 14 | effect a federal election to opt out of the provisions | ||||||
| 15 | of the Subchapter S Revision Act of 1982 and have | ||||||
| 16 | applied instead the prior federal Subchapter S rules | ||||||
| 17 | as in effect on July 1, 1982, the taxable income of | ||||||
| 18 | such corporation determined in accordance with the | ||||||
| 19 | federal Subchapter S rules as in effect on July 1, | ||||||
| 20 | 1982; and | ||||||
| 21 | (H) Partnerships. In the case of a partnership, | ||||||
| 22 | taxable income determined in accordance with Section | ||||||
| 23 | 703 of the Internal Revenue Code, except that taxable | ||||||
| 24 | income shall take into account those items which are | ||||||
| 25 | required by Section 703(a)(1) to be separately stated | ||||||
| 26 | but which would be taken into account by an individual | ||||||
| |||||||
| |||||||
| 1 | in calculating his taxable income. | ||||||
| 2 | (3) Recapture of business expenses on disposition of | ||||||
| 3 | asset or business. Notwithstanding any other law to the | ||||||
| 4 | contrary, if in prior years income from an asset or | ||||||
| 5 | business has been classified as business income and in a | ||||||
| 6 | later year is demonstrated to be non-business income, then | ||||||
| 7 | all expenses, without limitation, deducted in such later | ||||||
| 8 | year and in the 2 immediately preceding taxable years | ||||||
| 9 | related to that asset or business that generated the | ||||||
| 10 | non-business income shall be added back and recaptured as | ||||||
| 11 | business income in the year of the disposition of the | ||||||
| 12 | asset or business. Such amount shall be apportioned to | ||||||
| 13 | Illinois using the greater of the apportionment fraction | ||||||
| 14 | computed for the business under Section 304 of this Act | ||||||
| 15 | for the taxable year or the average of the apportionment | ||||||
| 16 | fractions computed for the business under Section 304 of | ||||||
| 17 | this Act for the taxable year and for the 2 immediately | ||||||
| 18 | preceding taxable years.
| ||||||
| 19 | (f) Valuation limitation amount. | ||||||
| 20 | (1) In general. The valuation limitation amount | ||||||
| 21 | referred to in subsections (a)(2)(G), (c)(2)(I) and | ||||||
| 22 | (d)(2)(E) is an amount equal to: | ||||||
| 23 | (A) The sum of the pre-August 1, 1969 appreciation | ||||||
| 24 | amounts (to the extent consisting of gain reportable | ||||||
| 25 | under the provisions of Section 1245 or 1250 of the | ||||||
| |||||||
| |||||||
| 1 | Internal Revenue Code) for all property in respect of | ||||||
| 2 | which such gain was reported for the taxable year; | ||||||
| 3 | plus | ||||||
| 4 | (B) The lesser of (i) the sum of the pre-August 1, | ||||||
| 5 | 1969 appreciation amounts (to the extent consisting of | ||||||
| 6 | capital gain) for all property in respect of which | ||||||
| 7 | such gain was reported for federal income tax purposes | ||||||
| 8 | for the taxable year, or (ii) the net capital gain for | ||||||
| 9 | the taxable year, reduced in either case by any amount | ||||||
| 10 | of such gain included in the amount determined under | ||||||
| 11 | subsection (a)(2)(F) or (c)(2)(H). | ||||||
| 12 | (2) Pre-August 1, 1969 appreciation amount. | ||||||
| 13 | (A) If the fair market value of property referred | ||||||
| 14 | to in paragraph (1) was readily ascertainable on | ||||||
| 15 | August 1, 1969, the pre-August 1, 1969 appreciation | ||||||
| 16 | amount for such property is the lesser of (i) the | ||||||
| 17 | excess of such fair market value over the taxpayer's | ||||||
| 18 | basis (for determining gain) for such property on that | ||||||
| 19 | date (determined under the Internal Revenue Code as in | ||||||
| 20 | effect on that date), or (ii) the total gain realized | ||||||
| 21 | and reportable for federal income tax purposes in | ||||||
| 22 | respect of the sale, exchange or other disposition of | ||||||
| 23 | such property. | ||||||
| 24 | (B) If the fair market value of property referred | ||||||
| 25 | to in paragraph (1) was not readily ascertainable on | ||||||
| 26 | August 1, 1969, the pre-August 1, 1969 appreciation | ||||||
| |||||||
| |||||||
| 1 | amount for such property is that amount which bears | ||||||
| 2 | the same ratio to the total gain reported in respect of | ||||||
| 3 | the property for federal income tax purposes for the | ||||||
| 4 | taxable year, as the number of full calendar months in | ||||||
| 5 | that part of the taxpayer's holding period for the | ||||||
| 6 | property ending July 31, 1969 bears to the number of | ||||||
| 7 | full calendar months in the taxpayer's entire holding | ||||||
| 8 | period for the property. | ||||||
| 9 | (C) The Department shall prescribe such | ||||||
| 10 | regulations as may be necessary to carry out the | ||||||
| 11 | purposes of this paragraph.
| ||||||
| 12 | (g) Double deductions. Unless specifically provided | ||||||
| 13 | otherwise, nothing in this Section shall permit the same item | ||||||
| 14 | to be deducted more than once.
| ||||||
| 15 | (h) Legislative intention. Except as expressly provided by | ||||||
| 16 | this Section there shall be no modifications or limitations on | ||||||
| 17 | the amounts of income, gain, loss or deduction taken into | ||||||
| 18 | account in determining gross income, adjusted gross income or | ||||||
| 19 | taxable income for federal income tax purposes for the taxable | ||||||
| 20 | year, or in the amount of such items entering into the | ||||||
| 21 | computation of base income and net income under this Act for | ||||||
| 22 | such taxable year, whether in respect of property values as of | ||||||
| 23 | August 1, 1969 or otherwise. | ||||||
| 24 | (Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; | ||||||
| |||||||
| |||||||
| 1 | 102-658, eff. 8-27-21; 102-813, eff. 5-13-22; 102-1112, eff. | ||||||
| 2 | 12-21-22; 103-8, eff. 6-7-23; 103-478, eff. 1-1-24; revised | ||||||
| 3 | 9-26-23.)
| ||||||
| 4 | ARTICLE 15. | ||||||
| 5 | Section 15-5. The Property Tax Code is amended by changing | ||||||
| 6 | Section 18-173 as follows:
| ||||||
| 7 | (35 ILCS 200/18-173) | ||||||
| 8 | Sec. 18-173. Housing opportunity area abatement program. | ||||||
| 9 | (a) For the purpose of promoting access to housing near | ||||||
| 10 | work and in order to promote economic diversity throughout | ||||||
| 11 | Illinois and to alleviate the concentration of low-income | ||||||
| 12 | households in areas of high poverty, a housing opportunity | ||||||
| 13 | area tax abatement program is created. | ||||||
| 14 | (b) As used in this Section: | ||||||
| 15 | "Housing authority" means either a housing authority | ||||||
| 16 | created under the Housing Authorities Act or other government | ||||||
| 17 | agency that is authorized by the United States government | ||||||
| 18 | under the United States Housing Act of 1937 to administer a | ||||||
| 19 | housing choice voucher program, or the authorized agent of | ||||||
| 20 | such a housing authority that is authorized to act upon that | ||||||
| 21 | authority's behalf. | ||||||
| 22 | "Housing choice voucher" means a tenant voucher issued by | ||||||
| 23 | a housing authority under Section 8 of the United States | ||||||
| |||||||
| |||||||
| 1 | Housing Act of 1937 and a tenant voucher converted to a | ||||||
| 2 | project-based voucher by a housing authority. | ||||||
| 3 | "Housing opportunity area" means a census tract where less | ||||||
| 4 | than 10% of the residents live below the poverty level, as | ||||||
| 5 | defined by the United States government and determined by the | ||||||
| 6 | most recent United States census, that is located within a | ||||||
| 7 | qualified township, except for census tracts located within | ||||||
| 8 | any township that is located wholly within a municipality with | ||||||
| 9 | 1,000,000 or more inhabitants. A census tract that is located | ||||||
| 10 | within a township that is located wholly within a municipality | ||||||
| 11 | with 1,000,000 or more inhabitants is considered a housing | ||||||
| 12 | opportunity area if less than 12% of the residents of the | ||||||
| 13 | census tract live below the poverty level. | ||||||
| 14 | "Housing opportunity unit" means a dwelling unit located | ||||||
| 15 | in residential property that is located in a housing | ||||||
| 16 | opportunity area, that is owned by the applicant, and that is | ||||||
| 17 | rented to and occupied by a tenant who is participating in a | ||||||
| 18 | housing choice voucher program administered by a housing | ||||||
| 19 | authority as of January 1st of the tax year for which the | ||||||
| 20 | application is made. | ||||||
| 21 | "Qualified units" means the number of housing opportunity | ||||||
| 22 | units located in the property with the limitation that no more | ||||||
| 23 | than 2 units or 20% of the total units contained within the | ||||||
| 24 | property, whichever is greater, may be considered qualified | ||||||
| 25 | units. Further, no unit may be considered qualified unless the | ||||||
| 26 | property in which it is contained is in substantial compliance | ||||||
| |||||||
| |||||||
| 1 | with local building codes, and, moreover, no unit may be | ||||||
| 2 | considered qualified unless it meets the United States | ||||||
| 3 | Department of Housing and Urban Development's housing quality | ||||||
| 4 | standards as of the most recent housing authority inspection. | ||||||
| 5 | "Qualified township" means a township located within a | ||||||
| 6 | county with 200,000 or more inhabitants whose tax capacity | ||||||
| 7 | exceeds 80% of the average tax capacity of the county in which | ||||||
| 8 | it is located, except for townships located within a county | ||||||
| 9 | with 3,000,000 or more inhabitants, where a qualified township | ||||||
| 10 | means a township whose tax capacity exceeds 115% of the | ||||||
| 11 | average tax capacity of the county except for townships | ||||||
| 12 | located wholly within a municipality with 1,000,000 or more | ||||||
| 13 | inhabitants. All townships located wholly within a | ||||||
| 14 | municipality with 1,000,000 or more inhabitants are considered | ||||||
| 15 | qualified townships. | ||||||
| 16 | "Tax capacity" means the equalized assessed value of all | ||||||
| 17 | taxable real estate located within a township or county | ||||||
| 18 | divided by the total population of that township or county. | ||||||
| 19 | (c) The owner of property located within a housing | ||||||
| 20 | opportunity area who has a housing choice voucher contract | ||||||
| 21 | with a housing authority may apply for a housing opportunity | ||||||
| 22 | area tax abatement by annually submitting an application to | ||||||
| 23 | the housing authority that administers the housing choice | ||||||
| 24 | voucher contract. The application must include the number of | ||||||
| 25 | housing opportunity units as well as the total number of | ||||||
| 26 | dwelling units contained within the property. The owner must, | ||||||
| |||||||
| |||||||
| 1 | under oath, self-certify as to the total number of dwelling | ||||||
| 2 | units in the property and must self-certify that the property | ||||||
| 3 | is in substantial compliance with local building codes. The | ||||||
| 4 | housing authority shall annually determine the number of | ||||||
| 5 | qualified units located within each property for which an | ||||||
| 6 | application is made. | ||||||
| 7 | The housing authority shall establish rules and procedures | ||||||
| 8 | governing the application processes and may charge an | ||||||
| 9 | application fee. The county clerk may audit the applications | ||||||
| 10 | to determine that the properties subject to the tax abatement | ||||||
| 11 | meet the requirements of this Section. The determination of | ||||||
| 12 | eligibility of a property for the housing opportunity area | ||||||
| 13 | abatement shall be made annually; however, no property may | ||||||
| 14 | receive an abatement for more than 10 tax years. | ||||||
| 15 | (d) The housing authority shall determine housing | ||||||
| 16 | opportunity areas within its service area and annually deliver | ||||||
| 17 | to the county clerk, in a manner determined by the county | ||||||
| 18 | clerk, a list of all properties containing qualified units | ||||||
| 19 | within that service area by December 31st of the tax year for | ||||||
| 20 | which the property is eligible for abatement; the list shall | ||||||
| 21 | include the number of qualified units and the total number of | ||||||
| 22 | dwelling units for each property. | ||||||
| 23 | The county clerk shall deliver annually to a housing | ||||||
| 24 | authority, upon that housing authority's request, the most | ||||||
| 25 | recent available equalized assessed value for the county as a | ||||||
| 26 | whole and for those taxing districts and townships so | ||||||
| |||||||
| |||||||
| 1 | specified by the requesting housing authority. | ||||||
| 2 | (e) The county clerk shall abate the tax attributed to a | ||||||
| 3 | portion of the property determined to be eligible for a | ||||||
| 4 | housing opportunity area abatement. The portion eligible for | ||||||
| 5 | abatement shall be determined by reducing the equalized | ||||||
| 6 | assessment value by a percentage calculated using the | ||||||
| 7 | following formula: 19% of the equalized assessed value of the | ||||||
| 8 | property multiplied by a fraction where the numerator is the | ||||||
| 9 | number of qualified units and denominator is the total number | ||||||
| 10 | of dwelling units located within the property. | ||||||
| 11 | (f) Any municipality, except for municipalities with | ||||||
| 12 | 1,000,000 or more inhabitants, may annually petition the | ||||||
| 13 | county clerk to be excluded from a housing opportunity area if | ||||||
| 14 | it is able to demonstrate that more than 2.5% of the total | ||||||
| 15 | residential units located within that municipality are | ||||||
| 16 | occupied by tenants under the housing choice voucher program. | ||||||
| 17 | Properties located within an excluded municipality shall not | ||||||
| 18 | be eligible for the housing opportunity area abatement for the | ||||||
| 19 | tax year in which the petition is made. | ||||||
| 20 | (g) Applicability. This Section applies to tax years 2004 | ||||||
| 21 | through 2034 2024, unless extended by law. | ||||||
| 22 | (Source: P.A. 98-957, eff. 8-15-14.)
| ||||||
| 23 | ARTICLE 20. | ||||||
| 24 | Section 20-5. The Property Tax Code is amended by changing | ||||||
| |||||||
| |||||||
| 1 | Section 21-355 as follows:
| ||||||
| 2 | (35 ILCS 200/21-355) | ||||||
| 3 | Sec. 21-355. Amount of redemption. Any person desiring to | ||||||
| 4 | redeem shall deposit an amount specified in this Section with | ||||||
| 5 | the county clerk of the county in which the property is | ||||||
| 6 | situated, in legal money of the United States, or by cashier's | ||||||
| 7 | check, certified check, post office money order or money order | ||||||
| 8 | issued by a financial institution insured by an agency or | ||||||
| 9 | instrumentality of the United States, payable to the county | ||||||
| 10 | clerk of the proper county. The deposit shall be deemed timely | ||||||
| 11 | only if actually received in person at the county clerk's | ||||||
| 12 | office prior to the close of business as defined in Section | ||||||
| 13 | 3-2007 of the Counties Code on or before the expiration of the | ||||||
| 14 | period of redemption or by United States mail with a post | ||||||
| 15 | office cancellation mark dated not less than one day prior to | ||||||
| 16 | the expiration of the period of redemption. The deposit shall | ||||||
| 17 | be in an amount equal to the total of the following: | ||||||
| 18 | (a) the certificate amount, which shall include all | ||||||
| 19 | tax principal, special assessments, interest and penalties | ||||||
| 20 | paid by the tax purchaser together with costs and fees of | ||||||
| 21 | sale and fees paid under Sections 21-295 and 21-315 | ||||||
| 22 | through 21-335, except for the nonrefundable $80 fee paid, | ||||||
| 23 | pursuant to Section 21-295, for each item purchased at the | ||||||
| 24 | tax sale; | ||||||
| 25 | (b) the accrued penalty, computed through the date of | ||||||
| |||||||
| |||||||
| 1 | redemption as a percentage of the certificate amount, as | ||||||
| 2 | follows: | ||||||
| 3 | (1) if the redemption occurs on or before the | ||||||
| 4 | expiration of 6 months from the date of sale, the | ||||||
| 5 | certificate amount times the penalty bid at sale; | ||||||
| 6 | (2) if the redemption occurs after 6 months from | ||||||
| 7 | the date of sale, and on or before the expiration of 12 | ||||||
| 8 | months from the date of sale, the certificate amount | ||||||
| 9 | times 2 times the penalty bid at sale; | ||||||
| 10 | (3) if the redemption occurs after 12 months from | ||||||
| 11 | the date of sale and on or before the expiration of 18 | ||||||
| 12 | months from the date of sale, the certificate amount | ||||||
| 13 | times 3 times the penalty bid at sale; | ||||||
| 14 | (4) if the redemption occurs after 18 months from | ||||||
| 15 | the date of sale and on or before the expiration of 24 | ||||||
| 16 | months from the date of sale, the certificate amount | ||||||
| 17 | times 4 times the penalty bid at sale; | ||||||
| 18 | (5) if the redemption occurs after 24 months from | ||||||
| 19 | the date of sale and on or before the expiration of 30 | ||||||
| 20 | months from the date of sale, the certificate amount | ||||||
| 21 | times 5 times the penalty bid at sale; | ||||||
| 22 | (6) if the redemption occurs after 30 months from | ||||||
| 23 | the date of sale and on or before the expiration of 36 | ||||||
| 24 | months from the date of sale, the certificate amount | ||||||
| 25 | times 6 times the penalty bid at sale. | ||||||
| 26 | In the event that the property to be redeemed has been | ||||||
| |||||||
| |||||||
| 1 | purchased under Section 21-405 before January 1, 2024, the | ||||||
| 2 | penalty bid shall be 12% per penalty period as set forth in | ||||||
| 3 | subparagraphs (1) through (6) of this subsection (b). The | ||||||
| 4 | changes to this subdivision (b)(6) made by this amendatory | ||||||
| 5 | Act of the 91st General Assembly are not a new enactment, | ||||||
| 6 | but declaratory of existing law. | ||||||
| 7 | For counties with fewer than 3,000,000 inhabitants, if | ||||||
| 8 | the property to be redeemed is property with respect to | ||||||
| 9 | which a tax lien or certificate is acquired after January | ||||||
| 10 | 1, 2024 by the county as trustee pursuant to Section | ||||||
| 11 | 21-90, the penalty bid at sale shall accrue according to | ||||||
| 12 | the penalty periods established in subparagraphs (1) | ||||||
| 13 | through (6) of this subsection (b). | ||||||
| 14 | For counties with more than 3,000,000 inhabitants, if | ||||||
| 15 | If the property to be redeemed is property with respect to | ||||||
| 16 | which a tax lien or certificate is acquired on or after | ||||||
| 17 | January 1, 2024 by the county as trustee pursuant to | ||||||
| 18 | Section 21-90, the penalty bid is 0.75% and shall accrue | ||||||
| 19 | monthly instead of according to the penalty periods | ||||||
| 20 | established in subparagraphs (1) through (6) of this | ||||||
| 21 | subsection (b). | ||||||
| 22 | (c) The total of all taxes, special assessments, | ||||||
| 23 | accrued interest on those taxes and special assessments | ||||||
| 24 | and costs charged in connection with the payment of those | ||||||
| 25 | taxes or special assessments, except for the nonrefundable | ||||||
| 26 | $80 fee paid, pursuant to Section 21-295, for each item | ||||||
| |||||||
| |||||||
| 1 | purchased at the tax sale, which have been paid by the tax | ||||||
| 2 | certificate holder on or after the date those taxes or | ||||||
| 3 | special assessments became delinquent together with 12% | ||||||
| 4 | penalty on each amount so paid for each year or portion | ||||||
| 5 | thereof intervening between the date of that payment and | ||||||
| 6 | the date of redemption. In counties with less than | ||||||
| 7 | 3,000,000 inhabitants, however, a tax certificate holder | ||||||
| 8 | may not pay all or part of an installment of a subsequent | ||||||
| 9 | tax or special assessment for any year, nor shall any | ||||||
| 10 | tender of such a payment be accepted, until after the | ||||||
| 11 | second or final installment of the subsequent tax or | ||||||
| 12 | special assessment has become delinquent or until after | ||||||
| 13 | the holder of the certificate of purchase has filed a | ||||||
| 14 | petition for a tax deed under Section 22.30. The person | ||||||
| 15 | redeeming shall also pay the amount of interest charged on | ||||||
| 16 | the subsequent tax or special assessment and paid as a | ||||||
| 17 | penalty by the tax certificate holder. This amendatory Act | ||||||
| 18 | of 1995 applies to tax years beginning with the 1995 | ||||||
| 19 | taxes, payable in 1996, and thereafter. | ||||||
| 20 | (d) Any amount paid to redeem a forfeiture occurring | ||||||
| 21 | before January 1, 2024 but after the tax sale together | ||||||
| 22 | with 12% penalty thereon for each year or portion thereof | ||||||
| 23 | intervening between the date of the forfeiture redemption | ||||||
| 24 | and the date of redemption from the sale. | ||||||
| 25 | (e) Any amount paid by the certificate holder for | ||||||
| 26 | redemption of a subsequently occurring tax sale, including | ||||||
| |||||||
| |||||||
| 1 | tax liens or certificates held by the county as trustee, | ||||||
| 2 | pursuant to Section 21-90. | ||||||
| 3 | (f) All fees paid to the county clerk under Section | ||||||
| 4 | 22-5. | ||||||
| 5 | (g) All fees paid to the registrar of titles incident | ||||||
| 6 | to registering the tax certificate in compliance with the | ||||||
| 7 | Registered Titles (Torrens) Act. | ||||||
| 8 | (h) All fees paid to the circuit clerk and the | ||||||
| 9 | sheriff, a licensed or registered private detective, or | ||||||
| 10 | the coroner in connection with the filing of the petition | ||||||
| 11 | for tax deed and service of notices under Sections 22-15 | ||||||
| 12 | through 22-30 and 22-40 in addition to (1) a fee of $35 if | ||||||
| 13 | a petition for tax deed has been filed, which fee shall be | ||||||
| 14 | posted to the tax judgement, sale, redemption, and | ||||||
| 15 | forfeiture record, to be paid to the purchaser or his or | ||||||
| 16 | her assignee; (2) a fee of $4 if a notice under Section | ||||||
| 17 | 22-5 has been filed, which fee shall be posted to the tax | ||||||
| 18 | judgment, sale, redemption, and forfeiture record, to be | ||||||
| 19 | paid to the purchaser or his or her assignee; (3) all costs | ||||||
| 20 | paid to record a lis pendens notice in connection with | ||||||
| 21 | filing a petition under this Code; and (4) if a petition | ||||||
| 22 | for tax deed has been filed, all fees up to $150 per | ||||||
| 23 | redemption paid to a registered or licensed title | ||||||
| 24 | insurance company or title insurance agent for a title | ||||||
| 25 | search to identify all owners, parties interested, and | ||||||
| 26 | occupants of the property, to be paid to the purchaser or | ||||||
| |||||||
| |||||||
| 1 | his or her assignee. The fees in (1) and (2) of this | ||||||
| 2 | paragraph (h) shall be exempt from the posting | ||||||
| 3 | requirements of Section 21-360. The costs incurred in | ||||||
| 4 | causing notices to be served by a licensed or registered | ||||||
| 5 | private detective under Section 22-15, may not exceed the | ||||||
| 6 | amount that the sheriff would be authorized by law to | ||||||
| 7 | charge if those notices had been served by the sheriff. | ||||||
| 8 | (i) All fees paid for publication of notice of the tax | ||||||
| 9 | sale in accordance with Section 22-20. | ||||||
| 10 | (j) All sums paid to any county, city, village or | ||||||
| 11 | incorporated town for reimbursement under Section 22-35. | ||||||
| 12 | (k) All costs and expenses of receivership under | ||||||
| 13 | Section 21-410, to the extent that these costs and | ||||||
| 14 | expenses exceed any income from the property in question, | ||||||
| 15 | if the costs and expenditures have been approved by the | ||||||
| 16 | court appointing the receiver and a certified copy of the | ||||||
| 17 | order or approval is filed and posted by the certificate | ||||||
| 18 | holder with the county clerk. Only actual costs expended | ||||||
| 19 | may be posted on the tax judgment, sale, redemption and | ||||||
| 20 | forfeiture record. | ||||||
| 21 | (Source: P.A. 103-555, eff. 1-1-24.)
| ||||||
| 22 | ARTICLE 25. | ||||||
| 23 | Section 25-5. The Property Tax Code is amended by changing | ||||||
| 24 | Section 20-15 as follows:
| ||||||
| |||||||
| |||||||
| 1 | (35 ILCS 200/20-15) | ||||||
| 2 | Sec. 20-15. Information on bill or separate statement. | ||||||
| 3 | There shall be printed on each bill, or on a separate slip | ||||||
| 4 | which shall be mailed with the bill: | ||||||
| 5 | (a) a statement itemizing the rate at which taxes have | ||||||
| 6 | been extended for each of the taxing districts in the | ||||||
| 7 | county in whose district the property is located, and in | ||||||
| 8 | those counties utilizing electronic data processing | ||||||
| 9 | equipment the dollar amount of tax due from the person | ||||||
| 10 | assessed allocable to each of those taxing districts, | ||||||
| 11 | including a separate statement of the dollar amount of tax | ||||||
| 12 | due which is allocable to a tax levied under the Illinois | ||||||
| 13 | Local Library Act or to any other tax levied by a | ||||||
| 14 | municipality or township for public library purposes, | ||||||
| 15 | (b) a separate statement for each of the taxing | ||||||
| 16 | districts of the dollar amount of tax due which is | ||||||
| 17 | allocable to a tax levied under the Illinois Pension Code | ||||||
| 18 | or to any other tax levied by a municipality or township | ||||||
| 19 | for public pension or retirement purposes, | ||||||
| 20 | (b-5) a list of each tax increment financing (TIF) | ||||||
| 21 | district in which the property is located and the dollar | ||||||
| 22 | amount of tax due that is allocable to the TIF district, | ||||||
| 23 | (c) the total tax rate, | ||||||
| 24 | (d) the total amount of tax due, and | ||||||
| 25 | (e) the amount by which the total tax and the tax | ||||||
| |||||||
| |||||||
| 1 | allocable to each taxing district differs from the | ||||||
| 2 | taxpayer's last prior tax bill. | ||||||
| 3 | The county treasurer shall ensure that only those taxing | ||||||
| 4 | districts in which a parcel of property is located shall be | ||||||
| 5 | listed on the bill for that property. | ||||||
| 6 | In all counties the statement shall also provide: | ||||||
| 7 | (1) the property index number or other suitable | ||||||
| 8 | description, | ||||||
| 9 | (2) the assessment of the property, | ||||||
| 10 | (3) the statutory amount of each homestead exemption | ||||||
| 11 | applied to the property, | ||||||
| 12 | (4) the assessed value of the property after | ||||||
| 13 | application of all homestead exemptions, | ||||||
| 14 | (5) the equalization factors imposed by the county and | ||||||
| 15 | by the Department, and | ||||||
| 16 | (6) the equalized assessment resulting from the | ||||||
| 17 | application of the equalization factors to the basic | ||||||
| 18 | assessment. | ||||||
| 19 | In all counties which do not classify property for | ||||||
| 20 | purposes of taxation, for property on which a single family | ||||||
| 21 | residence is situated the statement shall also include a | ||||||
| 22 | statement to reflect the fair cash value determined for the | ||||||
| 23 | property. In all counties which classify property for purposes | ||||||
| 24 | of taxation in accordance with Section 4 of Article IX of the | ||||||
| 25 | Illinois Constitution, for parcels of residential property in | ||||||
| 26 | the lowest assessment classification the statement shall also | ||||||
| |||||||
| |||||||
| 1 | include a statement to reflect the fair cash value determined | ||||||
| 2 | for the property. | ||||||
| 3 | In all counties, the statement must include information | ||||||
| 4 | that certain taxpayers may be eligible for tax exemptions, | ||||||
| 5 | abatements, and other assistance programs and that, for more | ||||||
| 6 | information, taxpayers should consult with the office of their | ||||||
| 7 | township or county assessor and with the Illinois Department | ||||||
| 8 | of Revenue. For bills mailed on or after January 1, 2026, the | ||||||
| 9 | statement must include, in bold face type, a list of | ||||||
| 10 | exemptions available to taxpayers and contact information for | ||||||
| 11 | the chief county assessment officer. | ||||||
| 12 | In counties which use the estimated or accelerated billing | ||||||
| 13 | methods, these statements shall only be provided with the | ||||||
| 14 | final installment of taxes due. The provisions of this Section | ||||||
| 15 | create a mandatory statutory duty. They are not merely | ||||||
| 16 | directory or discretionary. The failure or neglect of the | ||||||
| 17 | collector to mail the bill, or the failure of the taxpayer to | ||||||
| 18 | receive the bill, shall not affect the validity of any tax, or | ||||||
| 19 | the liability for the payment of any tax. | ||||||
| 20 | (Source: P.A. 100-621, eff. 7-20-18; 101-134, eff. 7-26-19.)
| ||||||
| 21 | ARTICLE 30. | ||||||
| 22 | Section 30-5. The Property Tax Code is amended by changing | ||||||
| 23 | Section 30-25 as follows:
| ||||||
| |||||||
| |||||||
| 1 | (35 ILCS 200/30-25) | ||||||
| 2 | Sec. 30-25. Distributions from account. | ||||||
| 3 | (a) At the direction of the corporate authorities of a | ||||||
| 4 | taxing district, the treasurer of the taxing district shall | ||||||
| 5 | disburse the amounts held in the tax reimbursement account. | ||||||
| 6 | Unless the taxing district has divided the moneys as provided | ||||||
| 7 | in subsection (b), disbursements shall be made to all of the | ||||||
| 8 | owners of taxable homestead property within the taxing | ||||||
| 9 | district. Each owner of taxable homestead property shall | ||||||
| 10 | receive a proportionate share of the total disbursement based | ||||||
| 11 | on the amount of ad valorem taxes on taxable homestead | ||||||
| 12 | property paid by the owner to the taxing district under the | ||||||
| 13 | most recent tax bill. | ||||||
| 14 | (b) The corporate authorities of a taxing district may | ||||||
| 15 | direct the treasurer to divide the moneys deposited into the | ||||||
| 16 | account into 2 separate pools to be designated the homestead | ||||||
| 17 | property pool and the commercial or industrial property pool. | ||||||
| 18 | The amount to be deposited into each pool shall be determined | ||||||
| 19 | by the corporate authorities of the taxing district, except | ||||||
| 20 | that at least 50% of the moneys in the account shall be | ||||||
| 21 | deposited into the homestead property pool. The treasurer | ||||||
| 22 | shall disburse the amounts held in each pool in the tax | ||||||
| 23 | reimbursement account at the direction of the corporate | ||||||
| 24 | authorities. Disbursements from the homestead property pool | ||||||
| 25 | shall be made to all of the owners of taxable homestead | ||||||
| 26 | property within the taxing district. Each owner of taxable | ||||||
| |||||||
| |||||||
| 1 | homestead property shall receive a proportionate share of the | ||||||
| 2 | total disbursement from the pool based on the amount of ad | ||||||
| 3 | valorem taxes on taxable homestead property paid by the owner | ||||||
| 4 | to the taxing district under the most recent tax bill. | ||||||
| 5 | Disbursements from the commercial or industrial property pool | ||||||
| 6 | shall be made to all of the owners of taxable commercial or | ||||||
| 7 | industrial property, except (i) those owners whose property is | ||||||
| 8 | located within a tax increment financing district, (ii) those | ||||||
| 9 | owners who received a tax incentive as a result of a tax | ||||||
| 10 | incentivized development established by an intergovernmental | ||||||
| 11 | agreement to which the taxing district is a party, or (iii) | ||||||
| 12 | those owners whose property is classified as an apartment | ||||||
| 13 | building. Each eligible owner of taxable commercial or | ||||||
| 14 | industrial property shall receive a proportionate share of the | ||||||
| 15 | total disbursement from the pool based on the amount of ad | ||||||
| 16 | valorem taxes on taxable commercial or industrial property | ||||||
| 17 | paid by the owner to the taxing district under the most recent | ||||||
| 18 | tax bill. | ||||||
| 19 | (c) In determining the proportionate share of each owner | ||||||
| 20 | of homestead property, the numerator shall be the amount of | ||||||
| 21 | taxes on homestead property paid by that owner to the taxing | ||||||
| 22 | district under the most recent tax bill, and the denominator | ||||||
| 23 | shall be the aggregate total of all taxes on homestead | ||||||
| 24 | property paid by all owners to the taxing district under the | ||||||
| 25 | most recent tax bills. | ||||||
| 26 | (d) In determining the proportionate share of each owner | ||||||
| |||||||
| |||||||
| 1 | of commercial or industrial property, the numerator shall be | ||||||
| 2 | the amount of taxes on commercial or industrial property paid | ||||||
| 3 | by that owner to the taxing district under the most recent tax | ||||||
| 4 | bill, and the denominator shall be the aggregate total of all | ||||||
| 5 | taxes on commercial or industrial property paid by all owners | ||||||
| 6 | to the taxing district under the most recent tax bills less | ||||||
| 7 | taxes paid on commercial or industrial property located in a | ||||||
| 8 | tax increment financing district, taxes paid on commercial or | ||||||
| 9 | industrial property for which the owner received a tax | ||||||
| 10 | incentive as a result of a tax incentivized development | ||||||
| 11 | established by an intergovernmental agreement to which the | ||||||
| 12 | taxing district is a party, and taxes paid on an apartment | ||||||
| 13 | building. | ||||||
| 14 | (e) As used in this Section: | ||||||
| 15 | "Qualified redevelopment costs" means costs advanced by a | ||||||
| 16 | taxing district to a commercial or industrial property owner | ||||||
| 17 | to promote economic development when, but for the advancement | ||||||
| 18 | of the funds, the development would not be financially | ||||||
| 19 | feasible. | ||||||
| 20 | "Tax incentivized development" means an economic | ||||||
| 21 | development project established by intergovernmental agreement | ||||||
| 22 | whereby a taxing district advances qualified redevelopment | ||||||
| 23 | costs to a commercial or industrial property owner. | ||||||
| 24 | (Source: P.A. 90-471, eff. 8-17-97.)
| ||||||
| 25 | ARTICLE 35. | ||||||
| |||||||
| |||||||
| 1 | Section 35-5. The Property Tax Code is amended by changing | ||||||
| 2 | Sections 18-15 and 18-190 and by adding Section 18-17 as | ||||||
| 3 | follows:
| ||||||
| 4 | (35 ILCS 200/18-15) | ||||||
| 5 | Sec. 18-15. Filing of levies of taxing districts. | ||||||
| 6 | (a) Notwithstanding any other law to the contrary, all | ||||||
| 7 | taxing districts, other than a school district subject to the | ||||||
| 8 | authority of a Financial Oversight Panel pursuant to Article | ||||||
| 9 | 1H of the School Code, and except as provided in Section 18-17, | ||||||
| 10 | shall annually certify to the county clerk, on or before the | ||||||
| 11 | last Tuesday in December, the several amounts that they have | ||||||
| 12 | levied. | ||||||
| 13 | (a-5) Certification to the county clerk under subsection | ||||||
| 14 | (a), including any supplemental or supportive documentation, | ||||||
| 15 | may be submitted electronically. | ||||||
| 16 | (b) A school district subject to the authority of a | ||||||
| 17 | Financial Oversight Panel pursuant to Article 1H of the School | ||||||
| 18 | Code shall file a certificate of tax levy, necessary to effect | ||||||
| 19 | the implementation of the approved financial plan and the | ||||||
| 20 | approval of the Panel, as otherwise provided by this Section, | ||||||
| 21 | except that the certificate must be certified to the county | ||||||
| 22 | clerk on or before the first Tuesday in November. | ||||||
| 23 | (c) If a school district as specified in subsection (b) of | ||||||
| 24 | this Section fails to certify and return the certificate of | ||||||
| |||||||
| |||||||
| 1 | tax levy, necessary to effect the implementation of the | ||||||
| 2 | approved financial plan and the approval of the Financial | ||||||
| 3 | Oversight Panel, to the county clerk on or before the first | ||||||
| 4 | Tuesday in November, then the Financial Oversight Panel for | ||||||
| 5 | the school district shall proceed to adopt, certify, and | ||||||
| 6 | return a certificate of tax levy for the school district to the | ||||||
| 7 | county clerk on or before the last Tuesday in December. | ||||||
| 8 | (Source: P.A. 102-625, eff. 1-1-22.)
| ||||||
| 9 | (35 ILCS 200/18-17 new) | ||||||
| 10 | Sec. 18-17. Supplemental levy for LaMoille Community Unit | ||||||
| 11 | School District #303. Notwithstanding any other provision of | ||||||
| 12 | law, LaMoille Community Unit School District #303 may, by | ||||||
| 13 | ordinance adopted on or before June 30, 2024, amend or | ||||||
| 14 | supplement its levy for the 2023 tax year for taxes scheduled | ||||||
| 15 | to be collected in calendar year 2024. The District shall | ||||||
| 16 | certify the amount of the amended or supplemental levy to the | ||||||
| 17 | county clerk as soon as possible after the amended or | ||||||
| 18 | supplemental levy is adopted, and the county clerk shall | ||||||
| 19 | include those amounts in the extension of taxes for the 2023 | ||||||
| 20 | tax year. In no event shall the amended or supplemental levy | ||||||
| 21 | adopted under this Section cause the District's property tax | ||||||
| 22 | rate for the 2023 tax year to exceed the District's limiting | ||||||
| 23 | rate under the Property Tax Extension Limitation Law or any | ||||||
| 24 | other limitation on the extension of property taxes applicable | ||||||
| 25 | to the District. This Section is repealed on January 1, 2025.
| ||||||
| |||||||
| |||||||
| 1 | (35 ILCS 200/18-190) | ||||||
| 2 | Sec. 18-190. Direct referendum; new rate or increased | ||||||
| 3 | limiting rate. | ||||||
| 4 | (a) If a new rate is authorized by statute to be imposed | ||||||
| 5 | without referendum or is subject to a backdoor referendum, as | ||||||
| 6 | defined in Section 28-2 of the Election Code, the governing | ||||||
| 7 | body of the affected taxing district before levying the new | ||||||
| 8 | rate shall submit the new rate to direct referendum under the | ||||||
| 9 | provisions of this Section and of Article 28 of the Election | ||||||
| 10 | Code. Notwithstanding any other provision of law, the levies | ||||||
| 11 | authorized by Sections 21-110 and 21-110.1 of the Illinois | ||||||
| 12 | Pension Code shall not be considered new rates; however, | ||||||
| 13 | nothing in this amendatory Act of the 98th General Assembly | ||||||
| 14 | authorizes a taxing district to increase its limiting rate or | ||||||
| 15 | its aggregate extension without first obtaining referendum | ||||||
| 16 | approval as provided in this Section. Notwithstanding any | ||||||
| 17 | other provision of law, the levy authorized by Section 18-17 | ||||||
| 18 | is considered part of the annual corporate extension for the | ||||||
| 19 | taxing district and is not considered a new rate. | ||||||
| 20 | Notwithstanding the provisions, requirements, or limitations | ||||||
| 21 | of any other law, any tax levied for the 2005 levy year and all | ||||||
| 22 | subsequent levy years by any taxing district subject to this | ||||||
| 23 | Law may be extended at a rate exceeding the rate established | ||||||
| 24 | for that tax by referendum or statute, provided that the rate | ||||||
| 25 | does not exceed the statutory ceiling above which the tax is | ||||||
| |||||||
| |||||||
| 1 | not authorized to be further increased either by referendum or | ||||||
| 2 | in any other manner. Notwithstanding the provisions, | ||||||
| 3 | requirements, or limitations of any other law, all taxing | ||||||
| 4 | districts subject to this Law shall follow the provisions of | ||||||
| 5 | this Section whenever seeking referenda approval after March | ||||||
| 6 | 21, 2006 to (i) levy a new tax rate authorized by statute or | ||||||
| 7 | (ii) increase the limiting rate applicable to the taxing | ||||||
| 8 | district. All taxing districts subject to this Law are | ||||||
| 9 | authorized to seek referendum approval of each proposition | ||||||
| 10 | described and set forth in this Section. | ||||||
| 11 | The proposition seeking to obtain referendum approval to | ||||||
| 12 | levy a new tax rate as authorized in clause (i) shall be in | ||||||
| 13 | substantially the following form: | ||||||
| 14 | Shall ... (insert legal name, number, if any, and | ||||||
| 15 | county or counties of taxing district and geographic or | ||||||
| 16 | other common name by which a school or community college | ||||||
| 17 | district is known and referred to), Illinois, be | ||||||
| 18 | authorized to levy a new tax for ... purposes and have an | ||||||
| 19 | additional tax of ...% of the equalized assessed value of | ||||||
| 20 | the taxable property therein extended for such purposes? | ||||||
| 21 | The votes must be recorded as "Yes" or "No". | ||||||
| 22 | The proposition seeking to obtain referendum approval to | ||||||
| 23 | increase the limiting rate as authorized in clause (ii) shall | ||||||
| 24 | be in substantially the following form: | ||||||
| 25 | Shall the limiting rate under the Property Tax | ||||||
| 26 | Extension Limitation Law for ... (insert legal name, | ||||||
| |||||||
| |||||||
| 1 | number, if any, and county or counties of taxing district | ||||||
| 2 | and geographic or other common name by which a school or | ||||||
| 3 | community college district is known and referred to), | ||||||
| 4 | Illinois, be increased by an additional amount equal to | ||||||
| 5 | ...% above the limiting rate for the purpose of...(insert | ||||||
| 6 | purpose) for levy year ... (insert the most recent levy | ||||||
| 7 | year for which the limiting rate of the taxing district is | ||||||
| 8 | known at the time the submission of the proposition is | ||||||
| 9 | initiated by the taxing district) and be equal to ...% of | ||||||
| 10 | the equalized assessed value of the taxable property | ||||||
| 11 | therein for levy year(s) (insert each levy year for which | ||||||
| 12 | the increase will be applicable, which years must be | ||||||
| 13 | consecutive and may not exceed 4)? | ||||||
| 14 | The votes must be recorded as "Yes" or "No". | ||||||
| 15 | The ballot for any proposition submitted pursuant to this | ||||||
| 16 | Section shall have printed thereon, but not as a part of the | ||||||
| 17 | proposition submitted, only the following supplemental | ||||||
| 18 | information (which shall be supplied to the election authority | ||||||
| 19 | by the taxing district) in substantially the following form: | ||||||
| 20 | (1) The approximate amount of taxes extendable at the | ||||||
| 21 | most recently extended limiting rate is $..., and the | ||||||
| 22 | approximate amount of taxes extendable if the proposition | ||||||
| 23 | is approved is $.... | ||||||
| 24 | (2) For the ... (insert the first levy year for which | ||||||
| 25 | the new rate or increased limiting rate will be | ||||||
| 26 | applicable) levy year the approximate amount of the | ||||||
| |||||||
| |||||||
| 1 | additional tax extendable against property containing a | ||||||
| 2 | single family residence and having a fair market value at | ||||||
| 3 | the time of the referendum of $100,000 is estimated to be | ||||||
| 4 | $.... | ||||||
| 5 | (3) Based upon an average annual percentage increase | ||||||
| 6 | (or decrease) in the market value of such property of %... | ||||||
| 7 | (insert percentage equal to the average annual percentage | ||||||
| 8 | increase or decrease for the prior 3 levy years, at the | ||||||
| 9 | time the submission of the proposition is initiated by the | ||||||
| 10 | taxing district, in the amount of (A) the equalized | ||||||
| 11 | assessed value of the taxable property in the taxing | ||||||
| 12 | district less (B) the new property included in the | ||||||
| 13 | equalized assessed value), the approximate amount of the | ||||||
| 14 | additional tax extendable against such property for the | ||||||
| 15 | ... levy year is estimated to be $... and for the ... levy | ||||||
| 16 | year is estimated to be $ .... | ||||||
| 17 | (4) If the proposition is approved, the aggregate | ||||||
| 18 | extension for ... (insert each levy year for which the | ||||||
| 19 | increase will apply) will be determined by the limiting | ||||||
| 20 | rate set forth in the proposition, rather than the | ||||||
| 21 | otherwise applicable limiting rate calculated under the | ||||||
| 22 | provisions of the Property Tax Extension Limitation Law | ||||||
| 23 | (commonly known as the Property Tax Cap Law). | ||||||
| 24 | The approximate amount of taxes extendable shown in paragraph | ||||||
| 25 | (1) shall be computed upon the last known equalized assessed | ||||||
| 26 | value of taxable property in the taxing district (at the time | ||||||
| |||||||
| |||||||
| 1 | the submission of the proposition is initiated by the taxing | ||||||
| 2 | district). Paragraph (3) shall be included only if the | ||||||
| 3 | increased limiting rate will be applicable for more than one | ||||||
| 4 | levy year and shall list each levy year for which the increased | ||||||
| 5 | limiting rate will be applicable. The additional tax shown for | ||||||
| 6 | each levy year shall be the approximate dollar amount of the | ||||||
| 7 | increase over the amount of the most recently completed | ||||||
| 8 | extension at the time the submission of the proposition is | ||||||
| 9 | initiated by the taxing district. The approximate amount of | ||||||
| 10 | the additional taxes extendable shown in paragraphs (2) and | ||||||
| 11 | (3) shall be calculated by multiplying $100,000 (the fair | ||||||
| 12 | market value of the property without regard to any property | ||||||
| 13 | tax exemptions) by (i) the percentage level of assessment | ||||||
| 14 | prescribed for that property by statute, or by ordinance of | ||||||
| 15 | the county board in counties that classify property for | ||||||
| 16 | purposes of taxation in accordance with Section 4 of Article | ||||||
| 17 | IX of the Illinois Constitution; (ii) the most recent final | ||||||
| 18 | equalization factor certified to the county clerk by the | ||||||
| 19 | Department of Revenue at the time the taxing district | ||||||
| 20 | initiates the submission of the proposition to the electors; | ||||||
| 21 | and (iii) either the new rate or the amount by which the | ||||||
| 22 | limiting rate is to be increased. This amendatory Act of the | ||||||
| 23 | 97th General Assembly is intended to clarify the existing | ||||||
| 24 | requirements of this Section, and shall not be construed to | ||||||
| 25 | validate any prior non-compliant referendum language. | ||||||
| 26 | Paragraph (4) shall be included if the proposition concerns a | ||||||
| |||||||
| |||||||
| 1 | limiting rate increase but shall not be included if the | ||||||
| 2 | proposition concerns a new rate. Any notice required to be | ||||||
| 3 | published in connection with the submission of the proposition | ||||||
| 4 | shall also contain this supplemental information and shall not | ||||||
| 5 | contain any other supplemental information regarding the | ||||||
| 6 | proposition. Any error, miscalculation, or inaccuracy in | ||||||
| 7 | computing any amount set forth on the ballot and in the notice | ||||||
| 8 | that is not deliberate shall not invalidate or affect the | ||||||
| 9 | validity of any proposition approved. Notice of the referendum | ||||||
| 10 | shall be published and posted as otherwise required by law, | ||||||
| 11 | and the submission of the proposition shall be initiated as | ||||||
| 12 | provided by law. | ||||||
| 13 | If a majority of all ballots cast on the proposition are in | ||||||
| 14 | favor of the proposition, the following provisions shall be | ||||||
| 15 | applicable to the extension of taxes for the taxing district: | ||||||
| 16 | (A) a new tax rate shall be first effective for the | ||||||
| 17 | levy year in which the new rate is approved; | ||||||
| 18 | (B) if the proposition provides for a new tax rate, | ||||||
| 19 | the taxing district is authorized to levy a tax after the | ||||||
| 20 | canvass of the results of the referendum by the election | ||||||
| 21 | authority for the purposes for which the tax is | ||||||
| 22 | authorized; | ||||||
| 23 | (C) a limiting rate increase shall be first effective | ||||||
| 24 | for the levy year in which the limiting rate increase is | ||||||
| 25 | approved, provided that the taxing district may elect to | ||||||
| 26 | have a limiting rate increase be effective for the levy | ||||||
| |||||||
| |||||||
| 1 | year prior to the levy year in which the limiting rate | ||||||
| 2 | increase is approved unless the extension of taxes for the | ||||||
| 3 | prior levy year occurs 30 days or less after the canvass of | ||||||
| 4 | the results of the referendum by the election authority in | ||||||
| 5 | any county in which the taxing district is located; | ||||||
| 6 | (D) in order for the limiting rate increase to be | ||||||
| 7 | first effective for the levy year prior to the levy year of | ||||||
| 8 | the referendum, the taxing district must certify its | ||||||
| 9 | election to have the limiting rate increase be effective | ||||||
| 10 | for the prior levy year to the clerk of each county in | ||||||
| 11 | which the taxing district is located not more than 2 days | ||||||
| 12 | after the date the results of the referendum are canvassed | ||||||
| 13 | by the election authority; and | ||||||
| 14 | (E) if the proposition provides for a limiting rate | ||||||
| 15 | increase, the increase may be effective regardless of | ||||||
| 16 | whether the proposition is approved before or after the | ||||||
| 17 | taxing district adopts or files its levy for any levy | ||||||
| 18 | year. | ||||||
| 19 | Rates required to extend taxes on levies subject to a | ||||||
| 20 | backdoor referendum in each year there is a levy are not new | ||||||
| 21 | rates or rate increases under this Section if a levy has been | ||||||
| 22 | made for the fund in one or more of the preceding 3 levy years. | ||||||
| 23 | Changes made by this amendatory Act of 1997 to this Section in | ||||||
| 24 | reference to rates required to extend taxes on levies subject | ||||||
| 25 | to a backdoor referendum in each year there is a levy are | ||||||
| 26 | declarative of existing law and not a new enactment. | ||||||
| |||||||
| |||||||
| 1 | (b) Whenever other applicable law authorizes a taxing | ||||||
| 2 | district subject to the limitation with respect to its | ||||||
| 3 | aggregate extension provided for in this Law to issue bonds or | ||||||
| 4 | other obligations either without referendum or subject to | ||||||
| 5 | backdoor referendum, the taxing district may elect for each | ||||||
| 6 | separate bond issuance to submit the question of the issuance | ||||||
| 7 | of the bonds or obligations directly to the voters of the | ||||||
| 8 | taxing district, and if the referendum passes the taxing | ||||||
| 9 | district is not required to comply with any backdoor | ||||||
| 10 | referendum procedures or requirements set forth in the other | ||||||
| 11 | applicable law. The direct referendum shall be initiated by | ||||||
| 12 | ordinance or resolution of the governing body of the taxing | ||||||
| 13 | district, and the question shall be certified to the proper | ||||||
| 14 | election authorities in accordance with the provisions of the | ||||||
| 15 | Election Code. | ||||||
| 16 | (Source: P.A. 97-1087, eff. 8-24-12; 98-1088, eff. 8-26-14.)
| ||||||
| 17 | Section 35-10. The School Code is amended by changing | ||||||
| 18 | Section 17-3.2 as follows:
| ||||||
| 19 | (105 ILCS 5/17-3.2) (from Ch. 122, par. 17-3.2) | ||||||
| 20 | Sec. 17-3.2. Additional or supplemental budget. | ||||||
| 21 | (a) Whenever the voters of a school district have voted in | ||||||
| 22 | favor of an increase in the annual tax rate for educational or | ||||||
| 23 | operations and maintenance purposes or both at an election | ||||||
| 24 | held after the adoption of the annual school budget for any | ||||||
| |||||||
| |||||||
| 1 | fiscal year, the board may adopt or pass during that fiscal | ||||||
| 2 | year an additional or supplemental budget under the sole | ||||||
| 3 | authority of this Section by a vote of a majority of the full | ||||||
| 4 | membership of the board, any other provision of this Article | ||||||
| 5 | to the contrary notwithstanding, in and by which such | ||||||
| 6 | additional or supplemental budget the board shall appropriate | ||||||
| 7 | such additional sums of money as it may find necessary to | ||||||
| 8 | defray expenses and liabilities of that district to be | ||||||
| 9 | incurred for educational or operations and maintenance | ||||||
| 10 | purposes or both of the district during that fiscal year, but | ||||||
| 11 | not in excess of the additional funds estimated to be | ||||||
| 12 | available by virtue of such voted increase in the annual tax | ||||||
| 13 | rate for educational or operations and maintenance purposes or | ||||||
| 14 | both. Such additional or supplemental budget shall be regarded | ||||||
| 15 | as an amendment of the annual school budget for the fiscal year | ||||||
| 16 | in which it is adopted, and the board may levy the additional | ||||||
| 17 | tax for educational or operations and maintenance purposes or | ||||||
| 18 | both to equal the amount of the additional sums of money | ||||||
| 19 | appropriated in that additional or supplemental budget, | ||||||
| 20 | immediately. | ||||||
| 21 | (b) Notwithstanding any other provision of law, LaMoille | ||||||
| 22 | Community Unit School District #303 may adopt an additional or | ||||||
| 23 | supplemental budget in connection with an amended or | ||||||
| 24 | supplemental levy adopted under Section 18-17 of the Property | ||||||
| 25 | Tax Code without receiving the approval of the voters as | ||||||
| 26 | provided in subsection (a). This subsection (b) is inoperative | ||||||
| |||||||
| |||||||
| 1 | on and after January 1, 2025. | ||||||
| 2 | (Source: P.A. 86-1334.)
| ||||||
| 3 | ARTICLE 40. | ||||||
| 4 | Section 40-1. Short title. This Act may be cited as the | ||||||
| 5 | Local Journalism Sustainability Act. References in this | ||||||
| 6 | Article to "this Act" mean this Article.
| ||||||
| 7 | Section 40-5. Definitions. | ||||||
| 8 | "Award cycle" means the 4 reporting periods for which the | ||||||
| 9 | employer is awarded a credit under Section 40-10. | ||||||
| 10 | "Comparable rate" has the meaning given to that term by | ||||||
| 11 | the Federal Communications Commission in its campaign | ||||||
| 12 | advertising rate rules. | ||||||
| 13 | "Department" means the Department of Commerce and Economic | ||||||
| 14 | Opportunity. | ||||||
| 15 | "Independently owned" means, as applied to a local news | ||||||
| 16 | organization, that: | ||||||
| 17 | (1) the local news organization is not a publicly | ||||||
| 18 | traded entity and no more than 5% of the beneficial | ||||||
| 19 | ownership of the local news organization is owned, | ||||||
| 20 | directly or indirectly, by a publicly traded entity; and | ||||||
| 21 | (2) the local news organization is not a subsidiary. | ||||||
| 22 | "Local news organization" means an entity that: | ||||||
| 23 | (1) engages professionals to create, edit, produce, | ||||||
| |||||||
| |||||||
| 1 | and distribute original content concerning matters of | ||||||
| 2 | public interest through reporting activities, including | ||||||
| 3 | conducting interviews, observing current events, or | ||||||
| 4 | analyzing documents or other information; | ||||||
| 5 | (2) has at least one employee who meets all of the | ||||||
| 6 | following criteria: | ||||||
| 7 | (A) the employee is employed by the entity on a | ||||||
| 8 | full-time basis for at least 30 hours a week; | ||||||
| 9 | (B) the employee's job duties for the entity | ||||||
| 10 | consist primarily of providing coverage of Illinois or | ||||||
| 11 | local Illinois community news as described in | ||||||
| 12 | paragraph (C); | ||||||
| 13 | (C) the employee gathers, prepares, collects, | ||||||
| 14 | photographs, writes, edits, reports, or publishes | ||||||
| 15 | original local or State community news for | ||||||
| 16 | dissemination to the local or State community; and | ||||||
| 17 | (D) the employee lives within 50 miles of the | ||||||
| 18 | coverage area; | ||||||
| 19 | (3) in the case of a print publication, has published | ||||||
| 20 | at least one print publication per month over the previous | ||||||
| 21 | 12 months and either (i) holds a valid United States | ||||||
| 22 | Postal Service periodical permit or (ii) has at least 25% | ||||||
| 23 | of its content dedicated to local news; | ||||||
| 24 | (4) in the case of a digital-only entity, has | ||||||
| 25 | published one piece about the community per week over the | ||||||
| 26 | previous 12 months and has at least 33% of its digital | ||||||
| |||||||
| |||||||
| 1 | audience in Illinois, averaged over a 12-month period; | ||||||
| 2 | (5) in the case of a hybrid entity that has both print | ||||||
| 3 | and digital outlets, meets the requirements in either | ||||||
| 4 | paragraph (3) or (4) of this definition; | ||||||
| 5 | (6) has disclosed in its print publication or on its | ||||||
| 6 | website its beneficial ownership or, in the case of a | ||||||
| 7 | not-for-profit entity, its board of directors; | ||||||
| 8 | (7) in the case of an entity that maintains tax status | ||||||
| 9 | under Section 501(c)(3) of the federal Internal Revenue | ||||||
| 10 | Code, has declared the coverage of local or State news as | ||||||
| 11 | the stated mission in its filings with the Internal | ||||||
| 12 | Revenue Service; | ||||||
| 13 | (8) has not received any payments of more than 50% of | ||||||
| 14 | its gross receipts for the previous year from political | ||||||
| 15 | action committees or other entities described in Section | ||||||
| 16 | 527 of the federal Internal Revenue Code or from an | ||||||
| 17 | organization that maintains Section 501(c)(4) or 501(c)(6) | ||||||
| 18 | status under the federal Internal Revenue Code, unless | ||||||
| 19 | those payments are for political advertising during the | ||||||
| 20 | lowest unit windows and using comparable rates; and | ||||||
| 21 | (9) has not received more than 30% of its revenue from | ||||||
| 22 | the previous taxable year from political advertisements | ||||||
| 23 | during lowest unit windows. | ||||||
| 24 | "Local news organization" does not include an organization | ||||||
| 25 | that received more than $100,000 from organizations described | ||||||
| 26 | in paragraph (8) during the taxable year or any preceding | ||||||
| |||||||
| |||||||
| 1 | taxable year. | ||||||
| 2 | "Lowest unit window" has the meaning given to that term by | ||||||
| 3 | the Federal Communications Commission in its campaign | ||||||
| 4 | advertising rate rules. | ||||||
| 5 | "New journalism position" means an employment position | ||||||
| 6 | that results in a net increase in qualified journalists | ||||||
| 7 | employed by the local news organization from January 1 of the | ||||||
| 8 | preceding calendar year compared to January 1 of the calendar | ||||||
| 9 | year in which a credit under this Act is sought. | ||||||
| 10 | "Private fund" means a corporation that: | ||||||
| 11 | (1) would be considered an investment company under | ||||||
| 12 | Section 3 of the Investment Company Act of 1940, 15 U.S.C. | ||||||
| 13 | 80a-3, but for the application of paragraph (1) or (7) of | ||||||
| 14 | subsection (c) of that Section; | ||||||
| 15 | (2) is not a venture capital fund, as defined in | ||||||
| 16 | Section 275.203(l)-1 of Title 17 of the Code of Federal | ||||||
| 17 | Regulations, as in effect on the effective date of this | ||||||
| 18 | Act; and | ||||||
| 19 | (3) is not an institution selected under Section 107 | ||||||
| 20 | of the federal Community Development Banking and Financial | ||||||
| 21 | Institutions Act of 1994. | ||||||
| 22 | "Qualified journalist" means a person who: | ||||||
| 23 | (1) is employed for an average of at least 30 hours per | ||||||
| 24 | week; and | ||||||
| 25 | (2) is responsible for gathering, developing, | ||||||
| 26 | preparing, directing the recording of, producing, | ||||||
| |||||||
| |||||||
| 1 | collecting, photographing, recording, writing, editing, | ||||||
| 2 | reporting, designing, presenting, distributing, or | ||||||
| 3 | publishing original news or information that concerns | ||||||
| 4 | local matters of public interest. | ||||||
| 5 | "Reporting period" means the quarter for which a return is | ||||||
| 6 | required to be filed under Article 7 of the Illinois Income Tax | ||||||
| 7 | Act.
| ||||||
| 8 | Section 40-10. Credit award. For reporting periods that | ||||||
| 9 | begin on or after January 1, 2025 and before January 1, 2030, | ||||||
| 10 | employers, including employers that maintain tax status under | ||||||
| 11 | Section 501(c)(3) of the federal Internal Revenue Code, that | ||||||
| 12 | are local news organizations and that are required to deduct | ||||||
| 13 | and withhold taxes as provided in Article 7 of the Illinois | ||||||
| 14 | Income Tax Act are eligible to receive a credit against | ||||||
| 15 | payments due under Section 704A of the Illinois Income Tax | ||||||
| 16 | Act. The credit shall be $15,000 per qualified journalist | ||||||
| 17 | employed and paid by the employer during the 12-month period | ||||||
| 18 | immediately preceding the date on which the employer applies | ||||||
| 19 | for a credit under this Section. An additional credit of | ||||||
| 20 | $10,000 shall be awarded against payments due under Section | ||||||
| 21 | 704A of the Illinois Income Tax Act for each qualified | ||||||
| 22 | journalist who fills a new journalism position for the | ||||||
| 23 | employer during the 12-month period immediately preceding the | ||||||
| 24 | date on which the employer applies for a credit under this | ||||||
| 25 | Section. No more than $150,000 in credits under this Act may be | ||||||
| |||||||
| |||||||
| 1 | awarded to any one local news organization in a single | ||||||
| 2 | calendar year. If the local news organization is not | ||||||
| 3 | independently owned or lists a private fund among its | ||||||
| 4 | beneficial ownership, no more than $250,000 in credits may be | ||||||
| 5 | awarded in a single calendar year to all local news | ||||||
| 6 | organizations that share the same ownership interest. The | ||||||
| 7 | total amount of credits that may be awarded under this Act in | ||||||
| 8 | any given calendar year may not exceed $5,000,000, of which no | ||||||
| 9 | more than $4,000,000 may be awarded for the $15,000 credit | ||||||
| 10 | that applies to qualified journalists, and no more than | ||||||
| 11 | $1,000,000 may be awarded for the additional $10,000 credit | ||||||
| 12 | that is awarded for new journalism positions. Credits under | ||||||
| 13 | this Section shall be awarded by the Department on a | ||||||
| 14 | first-come, first-served basis. | ||||||
| 15 | The Department shall issue a credit certificate to each | ||||||
| 16 | eligible local news organization. Upon issuance of the credit | ||||||
| 17 | certificate, the Department shall inform the Department of | ||||||
| 18 | Revenue, in the form and manner as agreed between the | ||||||
| 19 | agencies, of the date the credit certificate was issued, the | ||||||
| 20 | name and tax identification number of the recipient, the | ||||||
| 21 | amount of the credit, and such other information as the | ||||||
| 22 | Department of Revenue may require. The credit certificate | ||||||
| 23 | shall be attached to the taxpayer's return. | ||||||
| 24 | The credit shall be applied to the first reporting period | ||||||
| 25 | after the credit certificate is issued and that begins on or | ||||||
| 26 | after January 1, 2025. If the amount of credit exceeds the | ||||||
| |||||||
| |||||||
| 1 | liability for the reporting period, the excess credit shall be | ||||||
| 2 | refunded to the taxpayer.
| ||||||
| 3 | Section 40-15. Application for local journalism | ||||||
| 4 | certificate. | ||||||
| 5 | (a) In order to qualify for a tax credit award under this | ||||||
| 6 | Act, an applicant must apply with the Department, in the form | ||||||
| 7 | and manner required by the Department, for each award cycle | ||||||
| 8 | for which a credit under this Act is sought, providing | ||||||
| 9 | information necessary to calculate the tax credit award and | ||||||
| 10 | any additional information as reasonably required by the | ||||||
| 11 | Department. A separate application shall be filed for each | ||||||
| 12 | local news organization. The tax credit award shall be | ||||||
| 13 | calculated based upon the filing by the applicant on forms | ||||||
| 14 | prescribed by the Department. The Department shall cooperate | ||||||
| 15 | with the Department of Revenue as needed in order to determine | ||||||
| 16 | credit amount and eligibility. | ||||||
| 17 | (b) Upon satisfactory review of the application, the | ||||||
| 18 | Department shall issue a local journalism certificate stating | ||||||
| 19 | the amount of the tax credit award to which the applicant is | ||||||
| 20 | entitled for the credit period and shall contemporaneously | ||||||
| 21 | notify the applicant and Department of Revenue upon issuance | ||||||
| 22 | of the certificate.
| ||||||
| 23 | Section 40-20. Powers of the Department. The Department | ||||||
| 24 | and the Department of Revenue may, in consultation, adopt any | ||||||
| |||||||
| |||||||
| 1 | rules necessary to administer the provisions of this Act.
| ||||||
| 2 | Section 40-25. Program terms and conditions. Any | ||||||
| 3 | documentary materials or data made available or received from | ||||||
| 4 | an applicant by any agent or employee of the Department are | ||||||
| 5 | confidential and are not public records to the extent that the | ||||||
| 6 | materials or data consist of commercial or financial | ||||||
| 7 | information regarding the operation of, or the production of, | ||||||
| 8 | the applicant or recipient of any tax credit award under this | ||||||
| 9 | Act.
| ||||||
| 10 | Section 40-900. The Illinois Income Tax Act is amended by | ||||||
| 11 | changing Section 704A as follows:
| ||||||
| 12 | (35 ILCS 5/704A) | ||||||
| 13 | Sec. 704A. Employer's return and payment of tax withheld. | ||||||
| 14 | (a) In general, every employer who deducts and withholds | ||||||
| 15 | or is required to deduct and withhold tax under this Act on or | ||||||
| 16 | after January 1, 2008 shall make those payments and returns as | ||||||
| 17 | provided in this Section. | ||||||
| 18 | (b) Returns. Every employer shall, in the form and manner | ||||||
| 19 | required by the Department, make returns with respect to taxes | ||||||
| 20 | withheld or required to be withheld under this Article 7 for | ||||||
| 21 | each quarter beginning on or after January 1, 2008, on or | ||||||
| 22 | before the last day of the first month following the close of | ||||||
| 23 | that quarter. | ||||||
| |||||||
| |||||||
| 1 | (c) Payments. With respect to amounts withheld or required | ||||||
| 2 | to be withheld on or after January 1, 2008: | ||||||
| 3 | (1) Semi-weekly payments. For each calendar year, each | ||||||
| 4 | employer who withheld or was required to withhold more | ||||||
| 5 | than $12,000 during the one-year period ending on June 30 | ||||||
| 6 | of the immediately preceding calendar year, payment must | ||||||
| 7 | be made: | ||||||
| 8 | (A) on or before each Friday of the calendar year, | ||||||
| 9 | for taxes withheld or required to be withheld on the | ||||||
| 10 | immediately preceding Saturday, Sunday, Monday, or | ||||||
| 11 | Tuesday; | ||||||
| 12 | (B) on or before each Wednesday of the calendar | ||||||
| 13 | year, for taxes withheld or required to be withheld on | ||||||
| 14 | the immediately preceding Wednesday, Thursday, or | ||||||
| 15 | Friday. | ||||||
| 16 | Beginning with calendar year 2011, payments made under | ||||||
| 17 | this paragraph (1) of subsection (c) must be made by | ||||||
| 18 | electronic funds transfer. | ||||||
| 19 | (2) Semi-weekly payments. Any employer who withholds | ||||||
| 20 | or is required to withhold more than $12,000 in any | ||||||
| 21 | quarter of a calendar year is required to make payments on | ||||||
| 22 | the dates set forth under item (1) of this subsection (c) | ||||||
| 23 | for each remaining quarter of that calendar year and for | ||||||
| 24 | the subsequent calendar year. | ||||||
| 25 | (3) Monthly payments. Each employer, other than an | ||||||
| 26 | employer described in items (1) or (2) of this subsection, | ||||||
| |||||||
| |||||||
| 1 | shall pay to the Department, on or before the 15th day of | ||||||
| 2 | each month the taxes withheld or required to be withheld | ||||||
| 3 | during the immediately preceding month. | ||||||
| 4 | (4) Payments with returns. Each employer shall pay to | ||||||
| 5 | the Department, on or before the due date for each return | ||||||
| 6 | required to be filed under this Section, any tax withheld | ||||||
| 7 | or required to be withheld during the period for which the | ||||||
| 8 | return is due and not previously paid to the Department. | ||||||
| 9 | (d) Regulatory authority. The Department may, by rule: | ||||||
| 10 | (1) Permit employers, in lieu of the requirements of | ||||||
| 11 | subsections (b) and (c), to file annual returns due on or | ||||||
| 12 | before January 31 of the year for taxes withheld or | ||||||
| 13 | required to be withheld during the previous calendar year | ||||||
| 14 | and, if the aggregate amounts required to be withheld by | ||||||
| 15 | the employer under this Article 7 (other than amounts | ||||||
| 16 | required to be withheld under Section 709.5) do not exceed | ||||||
| 17 | $1,000 for the previous calendar year, to pay the taxes | ||||||
| 18 | required to be shown on each such return no later than the | ||||||
| 19 | due date for such return. | ||||||
| 20 | (2) Provide that any payment required to be made under | ||||||
| 21 | subsection (c)(1) or (c)(2) is deemed to be timely to the | ||||||
| 22 | extent paid by electronic funds transfer on or before the | ||||||
| 23 | due date for deposit of federal income taxes withheld | ||||||
| 24 | from, or federal employment taxes due with respect to, the | ||||||
| 25 | wages from which the Illinois taxes were withheld. | ||||||
| 26 | (3) Designate one or more depositories to which | ||||||
| |||||||
| |||||||
| 1 | payment of taxes required to be withheld under this | ||||||
| 2 | Article 7 must be paid by some or all employers. | ||||||
| 3 | (4) Increase the threshold dollar amounts at which | ||||||
| 4 | employers are required to make semi-weekly payments under | ||||||
| 5 | subsection (c)(1) or (c)(2). | ||||||
| 6 | (e) Annual return and payment. Every employer who deducts | ||||||
| 7 | and withholds or is required to deduct and withhold tax from a | ||||||
| 8 | person engaged in domestic service employment, as that term is | ||||||
| 9 | defined in Section 3510 of the Internal Revenue Code, may | ||||||
| 10 | comply with the requirements of this Section with respect to | ||||||
| 11 | such employees by filing an annual return and paying the taxes | ||||||
| 12 | required to be deducted and withheld on or before the 15th day | ||||||
| 13 | of the fourth month following the close of the employer's | ||||||
| 14 | taxable year. The Department may allow the employer's return | ||||||
| 15 | to be submitted with the employer's individual income tax | ||||||
| 16 | return or to be submitted with a return due from the employer | ||||||
| 17 | under Section 1400.2 of the Unemployment Insurance Act. | ||||||
| 18 | (f) Magnetic media and electronic filing. With respect to | ||||||
| 19 | taxes withheld in calendar years prior to 2017, any W-2 Form | ||||||
| 20 | that, under the Internal Revenue Code and regulations | ||||||
| 21 | promulgated thereunder, is required to be submitted to the | ||||||
| 22 | Internal Revenue Service on magnetic media or electronically | ||||||
| 23 | must also be submitted to the Department on magnetic media or | ||||||
| 24 | electronically for Illinois purposes, if required by the | ||||||
| 25 | Department. | ||||||
| 26 | With respect to taxes withheld in 2017 and subsequent | ||||||
| |||||||
| |||||||
| 1 | calendar years, the Department may, by rule, require that any | ||||||
| 2 | return (including any amended return) under this Section and | ||||||
| 3 | any W-2 Form that is required to be submitted to the Department | ||||||
| 4 | must be submitted on magnetic media or electronically. | ||||||
| 5 | The due date for submitting W-2 Forms shall be as | ||||||
| 6 | prescribed by the Department by rule. | ||||||
| 7 | (g) For amounts deducted or withheld after December 31, | ||||||
| 8 | 2009, a taxpayer who makes an election under subsection (f) of | ||||||
| 9 | Section 5-15 of the Economic Development for a Growing Economy | ||||||
| 10 | Tax Credit Act for a taxable year shall be allowed a credit | ||||||
| 11 | against payments due under this Section for amounts withheld | ||||||
| 12 | during the first calendar year beginning after the end of that | ||||||
| 13 | taxable year equal to the amount of the credit for the | ||||||
| 14 | incremental income tax attributable to full-time employees of | ||||||
| 15 | the taxpayer awarded to the taxpayer by the Department of | ||||||
| 16 | Commerce and Economic Opportunity under the Economic | ||||||
| 17 | Development for a Growing Economy Tax Credit Act for the | ||||||
| 18 | taxable year and credits not previously claimed and allowed to | ||||||
| 19 | be carried forward under Section 211(4) of this Act as | ||||||
| 20 | provided in subsection (f) of Section 5-15 of the Economic | ||||||
| 21 | Development for a Growing Economy Tax Credit Act. The credit | ||||||
| 22 | or credits may not reduce the taxpayer's obligation for any | ||||||
| 23 | payment due under this Section to less than zero. If the amount | ||||||
| 24 | of the credit or credits exceeds the total payments due under | ||||||
| 25 | this Section with respect to amounts withheld during the | ||||||
| 26 | calendar year, the excess may be carried forward and applied | ||||||
| |||||||
| |||||||
| 1 | against the taxpayer's liability under this Section in the | ||||||
| 2 | succeeding calendar years as allowed to be carried forward | ||||||
| 3 | under paragraph (4) of Section 211 of this Act. The credit or | ||||||
| 4 | credits shall be applied to the earliest year for which there | ||||||
| 5 | is a tax liability. If there are credits from more than one | ||||||
| 6 | taxable year that are available to offset a liability, the | ||||||
| 7 | earlier credit shall be applied first. Each employer who | ||||||
| 8 | deducts and withholds or is required to deduct and withhold | ||||||
| 9 | tax under this Act and who retains income tax withholdings | ||||||
| 10 | under subsection (f) of Section 5-15 of the Economic | ||||||
| 11 | Development for a Growing Economy Tax Credit Act must make a | ||||||
| 12 | return with respect to such taxes and retained amounts in the | ||||||
| 13 | form and manner that the Department, by rule, requires and pay | ||||||
| 14 | to the Department or to a depositary designated by the | ||||||
| 15 | Department those withheld taxes not retained by the taxpayer. | ||||||
| 16 | For purposes of this subsection (g), the term taxpayer shall | ||||||
| 17 | include taxpayer and members of the taxpayer's unitary | ||||||
| 18 | business group as defined under paragraph (27) of subsection | ||||||
| 19 | (a) of Section 1501 of this Act. This Section is exempt from | ||||||
| 20 | the provisions of Section 250 of this Act. No credit awarded | ||||||
| 21 | under the Economic Development for a Growing Economy Tax | ||||||
| 22 | Credit Act for agreements entered into on or after January 1, | ||||||
| 23 | 2015 may be credited against payments due under this Section. | ||||||
| 24 | (g-1) For amounts deducted or withheld after December 31, | ||||||
| 25 | 2024, a taxpayer who makes an election under the Reimagining | ||||||
| 26 | Energy and Vehicles in Illinois Act shall be allowed a credit | ||||||
| |||||||
| |||||||
| 1 | against payments due under this Section for amounts withheld | ||||||
| 2 | during the first quarterly reporting period beginning after | ||||||
| 3 | the certificate is issued equal to the portion of the REV | ||||||
| 4 | Illinois Credit attributable to the incremental income tax | ||||||
| 5 | attributable to new employees and retained employees as | ||||||
| 6 | certified by the Department of Commerce and Economic | ||||||
| 7 | Opportunity pursuant to an agreement with the taxpayer under | ||||||
| 8 | the Reimagining Energy and Vehicles in Illinois Act for the | ||||||
| 9 | taxable year. The credit or credits may not reduce the | ||||||
| 10 | taxpayer's obligation for any payment due under this Section | ||||||
| 11 | to less than zero. If the amount of the credit or credits | ||||||
| 12 | exceeds the total payments due under this Section with respect | ||||||
| 13 | to amounts withheld during the quarterly reporting period, the | ||||||
| 14 | excess may be carried forward and applied against the | ||||||
| 15 | taxpayer's liability under this Section in the succeeding | ||||||
| 16 | quarterly reporting period as allowed to be carried forward | ||||||
| 17 | under paragraph (4) of Section 211 of this Act. The credit or | ||||||
| 18 | credits shall be applied to the earliest quarterly reporting | ||||||
| 19 | period for which there is a tax liability. If there are credits | ||||||
| 20 | from more than one quarterly reporting period that are | ||||||
| 21 | available to offset a liability, the earlier credit shall be | ||||||
| 22 | applied first. Each employer who deducts and withholds or is | ||||||
| 23 | required to deduct and withhold tax under this Act and who | ||||||
| 24 | retains income tax withholdings this subsection must make a | ||||||
| 25 | return with respect to such taxes and retained amounts in the | ||||||
| 26 | form and manner that the Department, by rule, requires and pay | ||||||
| |||||||
| |||||||
| 1 | to the Department or to a depositary designated by the | ||||||
| 2 | Department those withheld taxes not retained by the taxpayer. | ||||||
| 3 | For purposes of this subsection (g-1), the term taxpayer shall | ||||||
| 4 | include taxpayer and members of the taxpayer's unitary | ||||||
| 5 | business group as defined under paragraph (27) of subsection | ||||||
| 6 | (a) of Section 1501 of this Act. This Section is exempt from | ||||||
| 7 | the provisions of Section 250 of this Act. | ||||||
| 8 | (g-2) For amounts deducted or withheld after December 31, | ||||||
| 9 | 2024, a taxpayer who makes an election under the Manufacturing | ||||||
| 10 | Illinois Chips for Real Opportunity (MICRO) Act shall be | ||||||
| 11 | allowed a credit against payments due under this Section for | ||||||
| 12 | amounts withheld during the first quarterly reporting period | ||||||
| 13 | beginning after the certificate is issued equal to the portion | ||||||
| 14 | of the MICRO Illinois Credit attributable to the incremental | ||||||
| 15 | income tax attributable to new employees and retained | ||||||
| 16 | employees as certified by the Department of Commerce and | ||||||
| 17 | Economic Opportunity pursuant to an agreement with the | ||||||
| 18 | taxpayer under the Manufacturing Illinois Chips for Real | ||||||
| 19 | Opportunity (MICRO) Act for the taxable year. The credit or | ||||||
| 20 | credits may not reduce the taxpayer's obligation for any | ||||||
| 21 | payment due under this Section to less than zero. If the amount | ||||||
| 22 | of the credit or credits exceeds the total payments due under | ||||||
| 23 | this Section with respect to amounts withheld during the | ||||||
| 24 | quarterly reporting period, the excess may be carried forward | ||||||
| 25 | and applied against the taxpayer's liability under this | ||||||
| 26 | Section in the succeeding quarterly reporting period as | ||||||
| |||||||
| |||||||
| 1 | allowed to be carried forward under paragraph (4) of Section | ||||||
| 2 | 211 of this Act. The credit or credits shall be applied to the | ||||||
| 3 | earliest quarterly reporting period for which there is a tax | ||||||
| 4 | liability. If there are credits from more than one quarterly | ||||||
| 5 | reporting period that are available to offset a liability, the | ||||||
| 6 | earlier credit shall be applied first. Each employer who | ||||||
| 7 | deducts and withholds or is required to deduct and withhold | ||||||
| 8 | tax under this Act and who retains income tax withholdings | ||||||
| 9 | this subsection must make a return with respect to such taxes | ||||||
| 10 | and retained amounts in the form and manner that the | ||||||
| 11 | Department, by rule, requires and pay to the Department or to a | ||||||
| 12 | depositary designated by the Department those withheld taxes | ||||||
| 13 | not retained by the taxpayer. For purposes of this subsection, | ||||||
| 14 | the term taxpayer shall include taxpayer and members of the | ||||||
| 15 | taxpayer's unitary business group as defined under paragraph | ||||||
| 16 | (27) of subsection (a) of Section 1501 of this Act. This | ||||||
| 17 | Section is exempt from the provisions of Section 250 of this | ||||||
| 18 | Act. | ||||||
| 19 | (h) An employer may claim a credit against payments due | ||||||
| 20 | under this Section for amounts withheld during the first | ||||||
| 21 | calendar year ending after the date on which a tax credit | ||||||
| 22 | certificate was issued under Section 35 of the Small Business | ||||||
| 23 | Job Creation Tax Credit Act. The credit shall be equal to the | ||||||
| 24 | amount shown on the certificate, but may not reduce the | ||||||
| 25 | taxpayer's obligation for any payment due under this Section | ||||||
| 26 | to less than zero. If the amount of the credit exceeds the | ||||||
| |||||||
| |||||||
| 1 | total payments due under this Section with respect to amounts | ||||||
| 2 | withheld during the calendar year, the excess may be carried | ||||||
| 3 | forward and applied against the taxpayer's liability under | ||||||
| 4 | this Section in the 5 succeeding calendar years. The credit | ||||||
| 5 | shall be applied to the earliest year for which there is a tax | ||||||
| 6 | liability. If there are credits from more than one calendar | ||||||
| 7 | year that are available to offset a liability, the earlier | ||||||
| 8 | credit shall be applied first. This Section is exempt from the | ||||||
| 9 | provisions of Section 250 of this Act. | ||||||
| 10 | (i) Each employer with 50 or fewer full-time equivalent | ||||||
| 11 | employees during the reporting period may claim a credit | ||||||
| 12 | against the payments due under this Section for each qualified | ||||||
| 13 | employee in an amount equal to the maximum credit allowable. | ||||||
| 14 | The credit may be taken against payments due for reporting | ||||||
| 15 | periods that begin on or after January 1, 2020, and end on or | ||||||
| 16 | before December 31, 2027. An employer may not claim a credit | ||||||
| 17 | for an employee who has worked fewer than 90 consecutive days | ||||||
| 18 | immediately preceding the reporting period; however, such | ||||||
| 19 | credits may accrue during that 90-day period and be claimed | ||||||
| 20 | against payments under this Section for future reporting | ||||||
| 21 | periods after the employee has worked for the employer at | ||||||
| 22 | least 90 consecutive days. In no event may the credit exceed | ||||||
| 23 | the employer's liability for the reporting period. Each | ||||||
| 24 | employer who deducts and withholds or is required to deduct | ||||||
| 25 | and withhold tax under this Act and who retains income tax | ||||||
| 26 | withholdings under this subsection must make a return with | ||||||
| |||||||
| |||||||
| 1 | respect to such taxes and retained amounts in the form and | ||||||
| 2 | manner that the Department, by rule, requires and pay to the | ||||||
| 3 | Department or to a depositary designated by the Department | ||||||
| 4 | those withheld taxes not retained by the employer. | ||||||
| 5 | For each reporting period, the employer may not claim a | ||||||
| 6 | credit or credits for more employees than the number of | ||||||
| 7 | employees making less than the minimum or reduced wage for the | ||||||
| 8 | current calendar year during the last reporting period of the | ||||||
| 9 | preceding calendar year. Notwithstanding any other provision | ||||||
| 10 | of this subsection, an employer shall not be eligible for | ||||||
| 11 | credits for a reporting period unless the average wage paid by | ||||||
| 12 | the employer per employee for all employees making less than | ||||||
| 13 | $55,000 during the reporting period is greater than the | ||||||
| 14 | average wage paid by the employer per employee for all | ||||||
| 15 | employees making less than $55,000 during the same reporting | ||||||
| 16 | period of the prior calendar year. | ||||||
| 17 | For purposes of this subsection (i): | ||||||
| 18 | "Compensation paid in Illinois" has the meaning ascribed | ||||||
| 19 | to that term under Section 304(a)(2)(B) of this Act. | ||||||
| 20 | "Employer" and "employee" have the meaning ascribed to | ||||||
| 21 | those terms in the Minimum Wage Law, except that "employee" | ||||||
| 22 | also includes employees who work for an employer with fewer | ||||||
| 23 | than 4 employees. Employers that operate more than one | ||||||
| 24 | establishment pursuant to a franchise agreement or that | ||||||
| 25 | constitute members of a unitary business group shall aggregate | ||||||
| 26 | their employees for purposes of determining eligibility for | ||||||
| |||||||
| |||||||
| 1 | the credit. | ||||||
| 2 | "Full-time equivalent employees" means the ratio of the | ||||||
| 3 | number of paid hours during the reporting period and the | ||||||
| 4 | number of working hours in that period. | ||||||
| 5 | "Maximum credit" means the percentage listed below of the | ||||||
| 6 | difference between the amount of compensation paid in Illinois | ||||||
| 7 | to employees who are paid not more than the required minimum | ||||||
| 8 | wage reduced by the amount of compensation paid in Illinois to | ||||||
| 9 | employees who were paid less than the current required minimum | ||||||
| 10 | wage during the reporting period prior to each increase in the | ||||||
| 11 | required minimum wage on January 1. If an employer pays an | ||||||
| 12 | employee more than the required minimum wage and that employee | ||||||
| 13 | previously earned less than the required minimum wage, the | ||||||
| 14 | employer may include the portion that does not exceed the | ||||||
| 15 | required minimum wage as compensation paid in Illinois to | ||||||
| 16 | employees who are paid not more than the required minimum | ||||||
| 17 | wage. | ||||||
| 18 | (1) 25% for reporting periods beginning on or after | ||||||
| 19 | January 1, 2020 and ending on or before December 31, 2020; | ||||||
| 20 | (2) 21% for reporting periods beginning on or after | ||||||
| 21 | January 1, 2021 and ending on or before December 31, 2021; | ||||||
| 22 | (3) 17% for reporting periods beginning on or after | ||||||
| 23 | January 1, 2022 and ending on or before December 31, 2022; | ||||||
| 24 | (4) 13% for reporting periods beginning on or after | ||||||
| 25 | January 1, 2023 and ending on or before December 31, 2023; | ||||||
| 26 | (5) 9% for reporting periods beginning on or after | ||||||
| |||||||
| |||||||
| 1 | January 1, 2024 and ending on or before December 31, 2024; | ||||||
| 2 | (6) 5% for reporting periods beginning on or after | ||||||
| 3 | January 1, 2025 and ending on or before December 31, 2025. | ||||||
| 4 | The amount computed under this subsection may continue to | ||||||
| 5 | be claimed for reporting periods beginning on or after January | ||||||
| 6 | 1, 2026 and: | ||||||
| 7 | (A) ending on or before December 31, 2026 for | ||||||
| 8 | employers with more than 5 employees; or | ||||||
| 9 | (B) ending on or before December 31, 2027 for | ||||||
| 10 | employers with no more than 5 employees. | ||||||
| 11 | "Qualified employee" means an employee who is paid not | ||||||
| 12 | more than the required minimum wage and has an average wage | ||||||
| 13 | paid per hour by the employer during the reporting period | ||||||
| 14 | equal to or greater than his or her average wage paid per hour | ||||||
| 15 | by the employer during each reporting period for the | ||||||
| 16 | immediately preceding 12 months. A new qualified employee is | ||||||
| 17 | deemed to have earned the required minimum wage in the | ||||||
| 18 | preceding reporting period. | ||||||
| 19 | "Reporting period" means the quarter for which a return is | ||||||
| 20 | required to be filed under subsection (b) of this Section. | ||||||
| 21 | (j) For reporting periods beginning on or after January 1, | ||||||
| 22 | 2023, if a private employer grants all of its employees the | ||||||
| 23 | option of taking a paid leave of absence of at least 30 days | ||||||
| 24 | for the purpose of serving as an organ donor or bone marrow | ||||||
| 25 | donor, then the private employer may take a credit against the | ||||||
| 26 | payments due under this Section in an amount equal to the | ||||||
| |||||||
| |||||||
| 1 | amount withheld under this Section with respect to wages paid | ||||||
| 2 | while the employee is on organ donation leave, not to exceed | ||||||
| 3 | $1,000 in withholdings for each employee who takes organ | ||||||
| 4 | donation leave. To be eligible for the credit, such a leave of | ||||||
| 5 | absence must be taken without loss of pay, vacation time, | ||||||
| 6 | compensatory time, personal days, or sick time for at least | ||||||
| 7 | the first 30 days of the leave of absence. The private employer | ||||||
| 8 | shall adopt rules governing organ donation leave, including | ||||||
| 9 | rules that (i) establish conditions and procedures for | ||||||
| 10 | requesting and approving leave and (ii) require medical | ||||||
| 11 | documentation of the proposed organ or bone marrow donation | ||||||
| 12 | before leave is approved by the private employer. A private | ||||||
| 13 | employer must provide, in the manner required by the | ||||||
| 14 | Department, documentation from the employee's medical | ||||||
| 15 | provider, which the private employer receives from the | ||||||
| 16 | employee, that verifies the employee's organ donation. The | ||||||
| 17 | private employer must also provide, in the manner required by | ||||||
| 18 | the Department, documentation that shows that a qualifying | ||||||
| 19 | organ donor leave policy was in place and offered to all | ||||||
| 20 | qualifying employees at the time the leave was taken. For the | ||||||
| 21 | private employer to receive the tax credit, the employee | ||||||
| 22 | taking organ donor leave must allow for the applicable medical | ||||||
| 23 | records to be disclosed to the Department. If the private | ||||||
| 24 | employer cannot provide the required documentation to the | ||||||
| 25 | Department, then the private employer is ineligible for the | ||||||
| 26 | credit under this Section. A private employer must also | ||||||
| |||||||
| |||||||
| 1 | provide, in the form required by the Department, any | ||||||
| 2 | additional documentation or information required by the | ||||||
| 3 | Department to administer the credit under this Section. The | ||||||
| 4 | credit under this subsection (j) shall be taken within one | ||||||
| 5 | year after the date upon which the organ donation leave | ||||||
| 6 | begins. If the leave taken spans into a second tax year, the | ||||||
| 7 | employer qualifies for the allowable credit in the later of | ||||||
| 8 | the 2 years. If the amount of credit exceeds the tax liability | ||||||
| 9 | for the year, the excess may be carried and applied to the tax | ||||||
| 10 | liability for the 3 taxable years following the excess credit | ||||||
| 11 | year. The tax credit shall be applied to the earliest year for | ||||||
| 12 | which there is a tax liability. If there are credits for more | ||||||
| 13 | than one year that are available to offset liability, the | ||||||
| 14 | earlier credit shall be applied first. | ||||||
| 15 | Nothing in this subsection (j) prohibits a private | ||||||
| 16 | employer from providing an unpaid leave of absence to its | ||||||
| 17 | employees for the purpose of serving as an organ donor or bone | ||||||
| 18 | marrow donor; however, if the employer's policy provides for | ||||||
| 19 | fewer than 30 days of paid leave for organ or bone marrow | ||||||
| 20 | donation, then the employer shall not be eligible for the | ||||||
| 21 | credit under this Section. | ||||||
| 22 | As used in this subsection (j): | ||||||
| 23 | "Organ" means any biological tissue of the human body that | ||||||
| 24 | may be donated by a living donor, including, but not limited | ||||||
| 25 | to, the kidney, liver, lung, pancreas, intestine, bone, skin, | ||||||
| 26 | or any subpart of those organs. | ||||||
| |||||||
| |||||||
| 1 | "Organ donor" means a person from whose body an organ is | ||||||
| 2 | taken to be transferred to the body of another person. | ||||||
| 3 | "Private employer" means a sole proprietorship, | ||||||
| 4 | corporation, partnership, limited liability company, or other | ||||||
| 5 | entity with one or more employees. "Private employer" does not | ||||||
| 6 | include a municipality, county, State agency, or other public | ||||||
| 7 | employer. | ||||||
| 8 | This subsection (j) is exempt from the provisions of | ||||||
| 9 | Section 250 of this Act. | ||||||
| 10 | (k) A taxpayer who is issued a certificate under the Local | ||||||
| 11 | Journalism Sustainability Act for a taxable year shall be | ||||||
| 12 | allowed a credit against payments due under this Section as | ||||||
| 13 | provided in that Act. | ||||||
| 14 | (Source: P.A. 101-1, eff. 2-19-19; 102-669, eff. 11-16-21; | ||||||
| 15 | 102-700, Article 30, Section 30-5, eff. 4-19-22; 102-700, | ||||||
| 16 | Article 110, Section 110-905, eff. 4-19-22; 102-1125, eff. | ||||||
| 17 | 2-3-23.)
| ||||||
| 18 | ARTICLE 45. | ||||||
| 19 | Section 45-5. The Live Theater Production Tax Credit Act | ||||||
| 20 | is amended by changing Sections 10-10, 10-20, and 10-40 as | ||||||
| 21 | follows:
| ||||||
| 22 | (35 ILCS 17/10-10) | ||||||
| 23 | Sec. 10-10. Definitions. As used in this Act: | ||||||
| |||||||
| |||||||
| 1 | "Accredited theater production" means a for-profit live | ||||||
| 2 | stage presentation in a qualified production facility, as | ||||||
| 3 | defined in this Section, that is either (i) a pre-Broadway | ||||||
| 4 | production or (ii) a long-run production for which the | ||||||
| 5 | aggregate Illinois labor and marketing expenditures exceed | ||||||
| 6 | $100,000. For credits awarded under this Act on or after July | ||||||
| 7 | 1, 2022 in State Fiscal Year 2023, "accredited theater | ||||||
| 8 | production" also includes any commercial Broadway touring | ||||||
| 9 | show. For credits awarded under this Act on or after July 1, | ||||||
| 10 | 2024, "accredited theater production" also includes non-profit | ||||||
| 11 | theater productions. | ||||||
| 12 | "Commercial Broadway touring show" means a production that | ||||||
| 13 | (i) is performed in a qualified production facility and plays | ||||||
| 14 | in more than 2 other markets in North America outside of | ||||||
| 15 | Illinois within 12 months of its Illinois presentation and | ||||||
| 16 | (ii) has Illinois production spending of not less than | ||||||
| 17 | $100,000, as shown on the applicant's application for the | ||||||
| 18 | credit. | ||||||
| 19 | "Pre-Broadway production" means a live stage production | ||||||
| 20 | that, (i) in its original or adaptive version, is performed in | ||||||
| 21 | a qualified production facility with the goal of having a | ||||||
| 22 | presentation scheduled for Broadway's Theater District in New | ||||||
| 23 | York City within 12 months after its Illinois presentation and | ||||||
| 24 | (ii) has Illinois production spending of not less than | ||||||
| 25 | $100,000, as shown on the applicant's application for the | ||||||
| 26 | credit. | ||||||
| |||||||
| |||||||
| 1 | "Long-run production" means a live stage production that | ||||||
| 2 | is performed in a qualified production facility for longer | ||||||
| 3 | than 8 weeks, with at least 6 performances per week, and | ||||||
| 4 | includes a production that spans the end of one tax year and | ||||||
| 5 | the commencement of a new tax year that, in combination, meets | ||||||
| 6 | the criteria set forth in this definition making it a long-run | ||||||
| 7 | production eligible for a theater tax credit award in each tax | ||||||
| 8 | year or portion thereof. | ||||||
| 9 | "Non-profit theater production" means a live stage | ||||||
| 10 | production that is at least 75 minutes in length with a written | ||||||
| 11 | script that (i) is produced by a 501(c)3 non-profit registered | ||||||
| 12 | in the State of Illinois for at least 5 years, (ii) has | ||||||
| 13 | Illinois production spending of not less than $10,000, as | ||||||
| 14 | shown on the applicant's application for the credit, and (iii) | ||||||
| 15 | has a minimum annual operating budget of $25,000 or more, as | ||||||
| 16 | shown on the applicant's application for the credit. | ||||||
| 17 | "Accredited theater production certificate" means a | ||||||
| 18 | certificate issued by the Department certifying that the | ||||||
| 19 | production is an accredited theater production that meets the | ||||||
| 20 | guidelines of this Act. | ||||||
| 21 | "Applicant" means a taxpayer that is a theater producer, | ||||||
| 22 | owner, licensee, operator, or presenter that is presenting or | ||||||
| 23 | has presented a live stage presentation located within the | ||||||
| 24 | State of Illinois who: | ||||||
| 25 | (1) owns or licenses the theatrical rights of the | ||||||
| 26 | stage presentation for the Illinois production period; or | ||||||
| |||||||
| |||||||
| 1 | (2) has contracted or will contract directly with the | ||||||
| 2 | owner or licensee of the theatrical rights or a person | ||||||
| 3 | acting on behalf of the owner or licensee to provide live | ||||||
| 4 | performances of the production. | ||||||
| 5 | An applicant that directly or indirectly owns, controls, | ||||||
| 6 | or operates multiple qualified production facilities shall be | ||||||
| 7 | presumed to be and considered for the purposes of this Act to | ||||||
| 8 | be a single applicant; provided, however, that as to each of | ||||||
| 9 | the applicant's qualified production facilities, the applicant | ||||||
| 10 | shall be eligible to separately and contemporaneously (i) | ||||||
| 11 | apply for and obtain accredited theater production | ||||||
| 12 | certificates, (ii) stage accredited theater productions, and | ||||||
| 13 | (iii) apply for and receive a tax credit award certificate for | ||||||
| 14 | each of the applicant's accredited theater productions | ||||||
| 15 | performed at each of the applicant's qualified production | ||||||
| 16 | facilities. | ||||||
| 17 | "Department" means the Department of Commerce and Economic | ||||||
| 18 | Opportunity. | ||||||
| 19 | "Director" means the Director of the Department. | ||||||
| 20 | "Illinois labor expenditure" means gross salary or wages | ||||||
| 21 | including, but not limited to, taxes, benefits, and any other | ||||||
| 22 | consideration incurred or paid to non-talent employees of the | ||||||
| 23 | applicant for services rendered to and on behalf of the | ||||||
| 24 | accredited theater production. To qualify as an Illinois labor | ||||||
| 25 | expenditure, the expenditure must be: | ||||||
| 26 | (1) incurred or paid by the applicant on or after the | ||||||
| |||||||
| |||||||
| 1 | effective date of the Act for services related to any | ||||||
| 2 | portion of an accredited theater production from its | ||||||
| 3 | pre-production stages, including, but not limited to, the | ||||||
| 4 | writing of the script, casting, hiring of service | ||||||
| 5 | providers, purchases from vendors, marketing, advertising, | ||||||
| 6 | public relations, load in, rehearsals, performances, other | ||||||
| 7 | accredited theater production related activities, and load | ||||||
| 8 | out; | ||||||
| 9 | (2) directly attributable to the accredited theater | ||||||
| 10 | production; | ||||||
| 11 | (3) limited to the first $100,000 of wages incurred or | ||||||
| 12 | paid to each employee of an accredited theater production | ||||||
| 13 | in each tax year; | ||||||
| 14 | (4) included in the federal income tax basis of the | ||||||
| 15 | property; | ||||||
| 16 | (5) paid in the tax year for which the applicant is | ||||||
| 17 | claiming the tax credit award, or no later than 60 days | ||||||
| 18 | after the end of the tax year; | ||||||
| 19 | (6) paid to persons residing in Illinois at the time | ||||||
| 20 | payments were made; and | ||||||
| 21 | (7) reasonable in the circumstances. | ||||||
| 22 | "Illinois production spending" means any and all expenses | ||||||
| 23 | directly or indirectly incurred relating to an accredited | ||||||
| 24 | theater production presented in any qualified production | ||||||
| 25 | facility of the applicant, including, but not limited to, | ||||||
| 26 | expenditures for: | ||||||
| |||||||
| |||||||
| 1 | (1) national marketing, public relations, and the | ||||||
| 2 | creation and placement of print, electronic, television, | ||||||
| 3 | billboard, and other forms of advertising; and | ||||||
| 4 | (2) the construction and fabrication of scenic | ||||||
| 5 | materials and elements; provided, however, that the | ||||||
| 6 | maximum amount of expenditures attributable to the | ||||||
| 7 | construction and fabrication of scenic materials and | ||||||
| 8 | elements eligible for a tax credit award shall not exceed | ||||||
| 9 | $500,000 per applicant per production in any single tax | ||||||
| 10 | year. | ||||||
| 11 | "Qualified production facility" means a facility located | ||||||
| 12 | in the State in which live theatrical productions are, or are | ||||||
| 13 | intended to be, exclusively presented that contains at least | ||||||
| 14 | one stage, a seating capacity of 1,200 or more seats or, if the | ||||||
| 15 | live theater production is a non-profit theater production, a | ||||||
| 16 | seating capacity of 50 or more seats, and dressing rooms, | ||||||
| 17 | storage areas, and other ancillary amenities necessary for the | ||||||
| 18 | accredited theater production. | ||||||
| 19 | "Tax credit award" means the issuance to a taxpayer by the | ||||||
| 20 | Department of a tax credit award in conformance with Sections | ||||||
| 21 | 10-40 and 10-45 of this Act. | ||||||
| 22 | "Tax year" means a calendar year for the period January 1 | ||||||
| 23 | to and including December 31. | ||||||
| 24 | (Source: P.A. 102-1112, eff. 12-21-22.)
| ||||||
| 25 | (35 ILCS 17/10-20) | ||||||
| |||||||
| |||||||
| 1 | Sec. 10-20. Tax credit award. Subject to the conditions | ||||||
| 2 | set forth in this Act, an applicant is entitled to a tax credit | ||||||
| 3 | award as approved by the Department for qualifying Illinois | ||||||
| 4 | labor expenditures and Illinois production spending for each | ||||||
| 5 | tax year in which the applicant is awarded an accredited | ||||||
| 6 | theater production certificate issued by the Department. The | ||||||
| 7 | amount of tax credits awarded pursuant to this Act shall not | ||||||
| 8 | exceed $2,000,000 in any State fiscal year ending on or before | ||||||
| 9 | June 30, 2022. The , except that the amount of tax credits | ||||||
| 10 | awarded pursuant to this Act for the State fiscal year ending | ||||||
| 11 | on June 30, 2023 or the State fiscal year ending on June 30, | ||||||
| 12 | 2024 shall not exceed $4,000,000. For the State fiscal year | ||||||
| 13 | ending on June 30, 2023 and the State fiscal year ending on | ||||||
| 14 | June 30, 2024, no more than $2,000,000 in credits may be | ||||||
| 15 | awarded in either of those fiscal years to accredited theater | ||||||
| 16 | productions that are not commercial Broadway touring shows, | ||||||
| 17 | and no more than $2,000,000 in credits may be awarded in either | ||||||
| 18 | of those fiscal years to commercial Broadway touring shows. | ||||||
| 19 | For State fiscal years ending on or after June 30, 2025, the | ||||||
| 20 | amount of tax credits awarded under this Act shall not exceed | ||||||
| 21 | $6,000,000, with no more than $2,000,000 in credits awarded | ||||||
| 22 | for long-run productions and pre-Broadway productions, no more | ||||||
| 23 | than $2,000,000 in credits awarded for commercial Broadway | ||||||
| 24 | touring shows, and no more than $2,000,000 in credits awarded | ||||||
| 25 | for non-profit theater productions. In the case of credits | ||||||
| 26 | awarded under this Act for non-profit theater productions, no | ||||||
| |||||||
| |||||||
| 1 | more than $100,000 in credits may be awarded to any single | ||||||
| 2 | non-profit theater production. Credits shall be awarded on a | ||||||
| 3 | first-come, first-served basis. Notwithstanding the foregoing, | ||||||
| 4 | if the amount of credits applied for in any fiscal year exceeds | ||||||
| 5 | the amount authorized to be awarded under this Section, the | ||||||
| 6 | excess credit amount shall be awarded in the next fiscal year | ||||||
| 7 | in which credits remain available for award and shall be | ||||||
| 8 | treated as having been applied for on the first day of that | ||||||
| 9 | fiscal year. | ||||||
| 10 | (Source: P.A. 102-700, eff. 4-19-22; 102-1112, eff. 12-21-22.)
| ||||||
| 11 | (35 ILCS 17/10-40) | ||||||
| 12 | Sec. 10-40. Issuance of Tax Credit Award Certificate. | ||||||
| 13 | (a) In order to qualify for a tax credit award under this | ||||||
| 14 | Act, an applicant must file an application for each accredited | ||||||
| 15 | theater production at each of the applicant's qualified | ||||||
| 16 | production facilities, on forms prescribed by the Department, | ||||||
| 17 | providing information necessary to calculate the tax credit | ||||||
| 18 | award and any additional information as reasonably required by | ||||||
| 19 | the Department. | ||||||
| 20 | (b) Upon satisfactory review of the application, the | ||||||
| 21 | Department shall issue a tax credit award certificate stating | ||||||
| 22 | the amount of the tax credit award to which the applicant is | ||||||
| 23 | entitled for that tax year and shall contemporaneously notify | ||||||
| 24 | the applicant and Illinois Department of Revenue in accordance | ||||||
| 25 | with Section 222 of the Illinois Income Tax Act or, if the | ||||||
| |||||||
| |||||||
| 1 | applicant is a nonprofit theater production, subsection (k) of | ||||||
| 2 | Section 704A of the Illinois Income Tax Act, as applicable. | ||||||
| 3 | (Source: P.A. 97-636, eff. 6-1-12.)
| ||||||
| 4 | Section 45-10. The Illinois Income Tax Act is amended by | ||||||
| 5 | changing Sections 222 and 704A as follows:
| ||||||
| 6 | (35 ILCS 5/222) | ||||||
| 7 | Sec. 222. Live theater production credit. | ||||||
| 8 | (a) For tax years beginning on or after January 1, 2012 and | ||||||
| 9 | beginning prior to January 1, 2027, a taxpayer who has | ||||||
| 10 | received a tax credit award under the Live Theater Production | ||||||
| 11 | Tax Credit Act for a long-run production, a pre-Broadway | ||||||
| 12 | production, or a commercial Broadway touring show is entitled | ||||||
| 13 | to a credit against the taxes imposed under subsections (a) | ||||||
| 14 | and (b) of Section 201 of this Act in an amount determined | ||||||
| 15 | under that Act by the Department of Commerce and Economic | ||||||
| 16 | Opportunity. | ||||||
| 17 | (b) For taxable years ending before December 31, 2023, if | ||||||
| 18 | the taxpayer is a partnership, limited liability partnership, | ||||||
| 19 | limited liability company, or Subchapter S corporation, the | ||||||
| 20 | tax credit award is allowed to the partners, unit holders, or | ||||||
| 21 | shareholders in accordance with the determination of income | ||||||
| 22 | and distributive share of income under Sections 702 and 704 | ||||||
| 23 | and Subchapter S of the Internal Revenue Code. For taxable | ||||||
| 24 | years ending on or after December 31, 2023, if the taxpayer is | ||||||
| |||||||
| |||||||
| 1 | a partnership or Subchapter S corporation, then the provisions | ||||||
| 2 | of Section 251 apply. | ||||||
| 3 | (c) A sale, assignment, or transfer of the tax credit | ||||||
| 4 | award may be made by the taxpayer earning the credit within one | ||||||
| 5 | year after the credit is awarded in accordance with rules | ||||||
| 6 | adopted by the Department of Commerce and Economic | ||||||
| 7 | Opportunity. | ||||||
| 8 | (d) The Department of Revenue, in cooperation with the | ||||||
| 9 | Department of Commerce and Economic Opportunity, shall adopt | ||||||
| 10 | rules to enforce and administer the provisions of this | ||||||
| 11 | Section. | ||||||
| 12 | (e) The tax credit award may not be carried back. If the | ||||||
| 13 | amount of the credit exceeds the tax liability for the year, | ||||||
| 14 | the excess may be carried forward and applied to the tax | ||||||
| 15 | liability of the 5 tax years following the excess credit year. | ||||||
| 16 | The tax credit award shall be applied to the earliest year for | ||||||
| 17 | which there is a tax liability. If there are credits from more | ||||||
| 18 | than one tax year that are available to offset liability, the | ||||||
| 19 | earlier credit shall be applied first. In no event may a credit | ||||||
| 20 | under this Section reduce the taxpayer's liability to less | ||||||
| 21 | than zero. | ||||||
| 22 | (Source: P.A. 102-16, eff. 6-17-21; 103-396, eff. 1-1-24.)
| ||||||
| 23 | (35 ILCS 5/704A) | ||||||
| 24 | Sec. 704A. Employer's return and payment of tax withheld. | ||||||
| 25 | (a) In general, every employer who deducts and withholds | ||||||
| |||||||
| |||||||
| 1 | or is required to deduct and withhold tax under this Act on or | ||||||
| 2 | after January 1, 2008 shall make those payments and returns as | ||||||
| 3 | provided in this Section. | ||||||
| 4 | (b) Returns. Every employer shall, in the form and manner | ||||||
| 5 | required by the Department, make returns with respect to taxes | ||||||
| 6 | withheld or required to be withheld under this Article 7 for | ||||||
| 7 | each quarter beginning on or after January 1, 2008, on or | ||||||
| 8 | before the last day of the first month following the close of | ||||||
| 9 | that quarter. | ||||||
| 10 | (c) Payments. With respect to amounts withheld or required | ||||||
| 11 | to be withheld on or after January 1, 2008: | ||||||
| 12 | (1) Semi-weekly payments. For each calendar year, each | ||||||
| 13 | employer who withheld or was required to withhold more | ||||||
| 14 | than $12,000 during the one-year period ending on June 30 | ||||||
| 15 | of the immediately preceding calendar year, payment must | ||||||
| 16 | be made: | ||||||
| 17 | (A) on or before each Friday of the calendar year, | ||||||
| 18 | for taxes withheld or required to be withheld on the | ||||||
| 19 | immediately preceding Saturday, Sunday, Monday, or | ||||||
| 20 | Tuesday; | ||||||
| 21 | (B) on or before each Wednesday of the calendar | ||||||
| 22 | year, for taxes withheld or required to be withheld on | ||||||
| 23 | the immediately preceding Wednesday, Thursday, or | ||||||
| 24 | Friday. | ||||||
| 25 | Beginning with calendar year 2011, payments made under | ||||||
| 26 | this paragraph (1) of subsection (c) must be made by | ||||||
| |||||||
| |||||||
| 1 | electronic funds transfer. | ||||||
| 2 | (2) Semi-weekly payments. Any employer who withholds | ||||||
| 3 | or is required to withhold more than $12,000 in any | ||||||
| 4 | quarter of a calendar year is required to make payments on | ||||||
| 5 | the dates set forth under item (1) of this subsection (c) | ||||||
| 6 | for each remaining quarter of that calendar year and for | ||||||
| 7 | the subsequent calendar year. | ||||||
| 8 | (3) Monthly payments. Each employer, other than an | ||||||
| 9 | employer described in items (1) or (2) of this subsection, | ||||||
| 10 | shall pay to the Department, on or before the 15th day of | ||||||
| 11 | each month the taxes withheld or required to be withheld | ||||||
| 12 | during the immediately preceding month. | ||||||
| 13 | (4) Payments with returns. Each employer shall pay to | ||||||
| 14 | the Department, on or before the due date for each return | ||||||
| 15 | required to be filed under this Section, any tax withheld | ||||||
| 16 | or required to be withheld during the period for which the | ||||||
| 17 | return is due and not previously paid to the Department. | ||||||
| 18 | (d) Regulatory authority. The Department may, by rule: | ||||||
| 19 | (1) Permit employers, in lieu of the requirements of | ||||||
| 20 | subsections (b) and (c), to file annual returns due on or | ||||||
| 21 | before January 31 of the year for taxes withheld or | ||||||
| 22 | required to be withheld during the previous calendar year | ||||||
| 23 | and, if the aggregate amounts required to be withheld by | ||||||
| 24 | the employer under this Article 7 (other than amounts | ||||||
| 25 | required to be withheld under Section 709.5) do not exceed | ||||||
| 26 | $1,000 for the previous calendar year, to pay the taxes | ||||||
| |||||||
| |||||||
| 1 | required to be shown on each such return no later than the | ||||||
| 2 | due date for such return. | ||||||
| 3 | (2) Provide that any payment required to be made under | ||||||
| 4 | subsection (c)(1) or (c)(2) is deemed to be timely to the | ||||||
| 5 | extent paid by electronic funds transfer on or before the | ||||||
| 6 | due date for deposit of federal income taxes withheld | ||||||
| 7 | from, or federal employment taxes due with respect to, the | ||||||
| 8 | wages from which the Illinois taxes were withheld. | ||||||
| 9 | (3) Designate one or more depositories to which | ||||||
| 10 | payment of taxes required to be withheld under this | ||||||
| 11 | Article 7 must be paid by some or all employers. | ||||||
| 12 | (4) Increase the threshold dollar amounts at which | ||||||
| 13 | employers are required to make semi-weekly payments under | ||||||
| 14 | subsection (c)(1) or (c)(2). | ||||||
| 15 | (e) Annual return and payment. Every employer who deducts | ||||||
| 16 | and withholds or is required to deduct and withhold tax from a | ||||||
| 17 | person engaged in domestic service employment, as that term is | ||||||
| 18 | defined in Section 3510 of the Internal Revenue Code, may | ||||||
| 19 | comply with the requirements of this Section with respect to | ||||||
| 20 | such employees by filing an annual return and paying the taxes | ||||||
| 21 | required to be deducted and withheld on or before the 15th day | ||||||
| 22 | of the fourth month following the close of the employer's | ||||||
| 23 | taxable year. The Department may allow the employer's return | ||||||
| 24 | to be submitted with the employer's individual income tax | ||||||
| 25 | return or to be submitted with a return due from the employer | ||||||
| 26 | under Section 1400.2 of the Unemployment Insurance Act. | ||||||
| |||||||
| |||||||
| 1 | (f) Magnetic media and electronic filing. With respect to | ||||||
| 2 | taxes withheld in calendar years prior to 2017, any W-2 Form | ||||||
| 3 | that, under the Internal Revenue Code and regulations | ||||||
| 4 | promulgated thereunder, is required to be submitted to the | ||||||
| 5 | Internal Revenue Service on magnetic media or electronically | ||||||
| 6 | must also be submitted to the Department on magnetic media or | ||||||
| 7 | electronically for Illinois purposes, if required by the | ||||||
| 8 | Department. | ||||||
| 9 | With respect to taxes withheld in 2017 and subsequent | ||||||
| 10 | calendar years, the Department may, by rule, require that any | ||||||
| 11 | return (including any amended return) under this Section and | ||||||
| 12 | any W-2 Form that is required to be submitted to the Department | ||||||
| 13 | must be submitted on magnetic media or electronically. | ||||||
| 14 | The due date for submitting W-2 Forms shall be as | ||||||
| 15 | prescribed by the Department by rule. | ||||||
| 16 | (g) For amounts deducted or withheld after December 31, | ||||||
| 17 | 2009, a taxpayer who makes an election under subsection (f) of | ||||||
| 18 | Section 5-15 of the Economic Development for a Growing Economy | ||||||
| 19 | Tax Credit Act for a taxable year shall be allowed a credit | ||||||
| 20 | against payments due under this Section for amounts withheld | ||||||
| 21 | during the first calendar year beginning after the end of that | ||||||
| 22 | taxable year equal to the amount of the credit for the | ||||||
| 23 | incremental income tax attributable to full-time employees of | ||||||
| 24 | the taxpayer awarded to the taxpayer by the Department of | ||||||
| 25 | Commerce and Economic Opportunity under the Economic | ||||||
| 26 | Development for a Growing Economy Tax Credit Act for the | ||||||
| |||||||
| |||||||
| 1 | taxable year and credits not previously claimed and allowed to | ||||||
| 2 | be carried forward under Section 211(4) of this Act as | ||||||
| 3 | provided in subsection (f) of Section 5-15 of the Economic | ||||||
| 4 | Development for a Growing Economy Tax Credit Act. The credit | ||||||
| 5 | or credits may not reduce the taxpayer's obligation for any | ||||||
| 6 | payment due under this Section to less than zero. If the amount | ||||||
| 7 | of the credit or credits exceeds the total payments due under | ||||||
| 8 | this Section with respect to amounts withheld during the | ||||||
| 9 | calendar year, the excess may be carried forward and applied | ||||||
| 10 | against the taxpayer's liability under this Section in the | ||||||
| 11 | succeeding calendar years as allowed to be carried forward | ||||||
| 12 | under paragraph (4) of Section 211 of this Act. The credit or | ||||||
| 13 | credits shall be applied to the earliest year for which there | ||||||
| 14 | is a tax liability. If there are credits from more than one | ||||||
| 15 | taxable year that are available to offset a liability, the | ||||||
| 16 | earlier credit shall be applied first. Each employer who | ||||||
| 17 | deducts and withholds or is required to deduct and withhold | ||||||
| 18 | tax under this Act and who retains income tax withholdings | ||||||
| 19 | under subsection (f) of Section 5-15 of the Economic | ||||||
| 20 | Development for a Growing Economy Tax Credit Act must make a | ||||||
| 21 | return with respect to such taxes and retained amounts in the | ||||||
| 22 | form and manner that the Department, by rule, requires and pay | ||||||
| 23 | to the Department or to a depositary designated by the | ||||||
| 24 | Department those withheld taxes not retained by the taxpayer. | ||||||
| 25 | For purposes of this subsection (g), the term taxpayer shall | ||||||
| 26 | include taxpayer and members of the taxpayer's unitary | ||||||
| |||||||
| |||||||
| 1 | business group as defined under paragraph (27) of subsection | ||||||
| 2 | (a) of Section 1501 of this Act. This Section is exempt from | ||||||
| 3 | the provisions of Section 250 of this Act. No credit awarded | ||||||
| 4 | under the Economic Development for a Growing Economy Tax | ||||||
| 5 | Credit Act for agreements entered into on or after January 1, | ||||||
| 6 | 2015 may be credited against payments due under this Section. | ||||||
| 7 | (g-1) For amounts deducted or withheld after December 31, | ||||||
| 8 | 2024, a taxpayer who makes an election under the Reimagining | ||||||
| 9 | Energy and Vehicles in Illinois Act shall be allowed a credit | ||||||
| 10 | against payments due under this Section for amounts withheld | ||||||
| 11 | during the first quarterly reporting period beginning after | ||||||
| 12 | the certificate is issued equal to the portion of the REV | ||||||
| 13 | Illinois Credit attributable to the incremental income tax | ||||||
| 14 | attributable to new employees and retained employees as | ||||||
| 15 | certified by the Department of Commerce and Economic | ||||||
| 16 | Opportunity pursuant to an agreement with the taxpayer under | ||||||
| 17 | the Reimagining Energy and Vehicles in Illinois Act for the | ||||||
| 18 | taxable year. The credit or credits may not reduce the | ||||||
| 19 | taxpayer's obligation for any payment due under this Section | ||||||
| 20 | to less than zero. If the amount of the credit or credits | ||||||
| 21 | exceeds the total payments due under this Section with respect | ||||||
| 22 | to amounts withheld during the quarterly reporting period, the | ||||||
| 23 | excess may be carried forward and applied against the | ||||||
| 24 | taxpayer's liability under this Section in the succeeding | ||||||
| 25 | quarterly reporting period as allowed to be carried forward | ||||||
| 26 | under paragraph (4) of Section 211 of this Act. The credit or | ||||||
| |||||||
| |||||||
| 1 | credits shall be applied to the earliest quarterly reporting | ||||||
| 2 | period for which there is a tax liability. If there are credits | ||||||
| 3 | from more than one quarterly reporting period that are | ||||||
| 4 | available to offset a liability, the earlier credit shall be | ||||||
| 5 | applied first. Each employer who deducts and withholds or is | ||||||
| 6 | required to deduct and withhold tax under this Act and who | ||||||
| 7 | retains income tax withholdings this subsection must make a | ||||||
| 8 | return with respect to such taxes and retained amounts in the | ||||||
| 9 | form and manner that the Department, by rule, requires and pay | ||||||
| 10 | to the Department or to a depositary designated by the | ||||||
| 11 | Department those withheld taxes not retained by the taxpayer. | ||||||
| 12 | For purposes of this subsection (g-1), the term taxpayer shall | ||||||
| 13 | include taxpayer and members of the taxpayer's unitary | ||||||
| 14 | business group as defined under paragraph (27) of subsection | ||||||
| 15 | (a) of Section 1501 of this Act. This Section is exempt from | ||||||
| 16 | the provisions of Section 250 of this Act. | ||||||
| 17 | (g-2) For amounts deducted or withheld after December 31, | ||||||
| 18 | 2024, a taxpayer who makes an election under the Manufacturing | ||||||
| 19 | Illinois Chips for Real Opportunity (MICRO) Act shall be | ||||||
| 20 | allowed a credit against payments due under this Section for | ||||||
| 21 | amounts withheld during the first quarterly reporting period | ||||||
| 22 | beginning after the certificate is issued equal to the portion | ||||||
| 23 | of the MICRO Illinois Credit attributable to the incremental | ||||||
| 24 | income tax attributable to new employees and retained | ||||||
| 25 | employees as certified by the Department of Commerce and | ||||||
| 26 | Economic Opportunity pursuant to an agreement with the | ||||||
| |||||||
| |||||||
| 1 | taxpayer under the Manufacturing Illinois Chips for Real | ||||||
| 2 | Opportunity (MICRO) Act for the taxable year. The credit or | ||||||
| 3 | credits may not reduce the taxpayer's obligation for any | ||||||
| 4 | payment due under this Section to less than zero. If the amount | ||||||
| 5 | of the credit or credits exceeds the total payments due under | ||||||
| 6 | this Section with respect to amounts withheld during the | ||||||
| 7 | quarterly reporting period, the excess may be carried forward | ||||||
| 8 | and applied against the taxpayer's liability under this | ||||||
| 9 | Section in the succeeding quarterly reporting period as | ||||||
| 10 | allowed to be carried forward under paragraph (4) of Section | ||||||
| 11 | 211 of this Act. The credit or credits shall be applied to the | ||||||
| 12 | earliest quarterly reporting period for which there is a tax | ||||||
| 13 | liability. If there are credits from more than one quarterly | ||||||
| 14 | reporting period that are available to offset a liability, the | ||||||
| 15 | earlier credit shall be applied first. Each employer who | ||||||
| 16 | deducts and withholds or is required to deduct and withhold | ||||||
| 17 | tax under this Act and who retains income tax withholdings | ||||||
| 18 | this subsection must make a return with respect to such taxes | ||||||
| 19 | and retained amounts in the form and manner that the | ||||||
| 20 | Department, by rule, requires and pay to the Department or to a | ||||||
| 21 | depositary designated by the Department those withheld taxes | ||||||
| 22 | not retained by the taxpayer. For purposes of this subsection, | ||||||
| 23 | the term taxpayer shall include taxpayer and members of the | ||||||
| 24 | taxpayer's unitary business group as defined under paragraph | ||||||
| 25 | (27) of subsection (a) of Section 1501 of this Act. This | ||||||
| 26 | Section is exempt from the provisions of Section 250 of this | ||||||
| |||||||
| |||||||
| 1 | Act. | ||||||
| 2 | (h) An employer may claim a credit against payments due | ||||||
| 3 | under this Section for amounts withheld during the first | ||||||
| 4 | calendar year ending after the date on which a tax credit | ||||||
| 5 | certificate was issued under Section 35 of the Small Business | ||||||
| 6 | Job Creation Tax Credit Act. The credit shall be equal to the | ||||||
| 7 | amount shown on the certificate, but may not reduce the | ||||||
| 8 | taxpayer's obligation for any payment due under this Section | ||||||
| 9 | to less than zero. If the amount of the credit exceeds the | ||||||
| 10 | total payments due under this Section with respect to amounts | ||||||
| 11 | withheld during the calendar year, the excess may be carried | ||||||
| 12 | forward and applied against the taxpayer's liability under | ||||||
| 13 | this Section in the 5 succeeding calendar years. The credit | ||||||
| 14 | shall be applied to the earliest year for which there is a tax | ||||||
| 15 | liability. If there are credits from more than one calendar | ||||||
| 16 | year that are available to offset a liability, the earlier | ||||||
| 17 | credit shall be applied first. This Section is exempt from the | ||||||
| 18 | provisions of Section 250 of this Act. | ||||||
| 19 | (i) Each employer with 50 or fewer full-time equivalent | ||||||
| 20 | employees during the reporting period may claim a credit | ||||||
| 21 | against the payments due under this Section for each qualified | ||||||
| 22 | employee in an amount equal to the maximum credit allowable. | ||||||
| 23 | The credit may be taken against payments due for reporting | ||||||
| 24 | periods that begin on or after January 1, 2020, and end on or | ||||||
| 25 | before December 31, 2027. An employer may not claim a credit | ||||||
| 26 | for an employee who has worked fewer than 90 consecutive days | ||||||
| |||||||
| |||||||
| 1 | immediately preceding the reporting period; however, such | ||||||
| 2 | credits may accrue during that 90-day period and be claimed | ||||||
| 3 | against payments under this Section for future reporting | ||||||
| 4 | periods after the employee has worked for the employer at | ||||||
| 5 | least 90 consecutive days. In no event may the credit exceed | ||||||
| 6 | the employer's liability for the reporting period. Each | ||||||
| 7 | employer who deducts and withholds or is required to deduct | ||||||
| 8 | and withhold tax under this Act and who retains income tax | ||||||
| 9 | withholdings under this subsection must make a return with | ||||||
| 10 | respect to such taxes and retained amounts in the form and | ||||||
| 11 | manner that the Department, by rule, requires and pay to the | ||||||
| 12 | Department or to a depositary designated by the Department | ||||||
| 13 | those withheld taxes not retained by the employer. | ||||||
| 14 | For each reporting period, the employer may not claim a | ||||||
| 15 | credit or credits for more employees than the number of | ||||||
| 16 | employees making less than the minimum or reduced wage for the | ||||||
| 17 | current calendar year during the last reporting period of the | ||||||
| 18 | preceding calendar year. Notwithstanding any other provision | ||||||
| 19 | of this subsection, an employer shall not be eligible for | ||||||
| 20 | credits for a reporting period unless the average wage paid by | ||||||
| 21 | the employer per employee for all employees making less than | ||||||
| 22 | $55,000 during the reporting period is greater than the | ||||||
| 23 | average wage paid by the employer per employee for all | ||||||
| 24 | employees making less than $55,000 during the same reporting | ||||||
| 25 | period of the prior calendar year. | ||||||
| 26 | For purposes of this subsection (i): | ||||||
| |||||||
| |||||||
| 1 | "Compensation paid in Illinois" has the meaning ascribed | ||||||
| 2 | to that term under Section 304(a)(2)(B) of this Act. | ||||||
| 3 | "Employer" and "employee" have the meaning ascribed to | ||||||
| 4 | those terms in the Minimum Wage Law, except that "employee" | ||||||
| 5 | also includes employees who work for an employer with fewer | ||||||
| 6 | than 4 employees. Employers that operate more than one | ||||||
| 7 | establishment pursuant to a franchise agreement or that | ||||||
| 8 | constitute members of a unitary business group shall aggregate | ||||||
| 9 | their employees for purposes of determining eligibility for | ||||||
| 10 | the credit. | ||||||
| 11 | "Full-time equivalent employees" means the ratio of the | ||||||
| 12 | number of paid hours during the reporting period and the | ||||||
| 13 | number of working hours in that period. | ||||||
| 14 | "Maximum credit" means the percentage listed below of the | ||||||
| 15 | difference between the amount of compensation paid in Illinois | ||||||
| 16 | to employees who are paid not more than the required minimum | ||||||
| 17 | wage reduced by the amount of compensation paid in Illinois to | ||||||
| 18 | employees who were paid less than the current required minimum | ||||||
| 19 | wage during the reporting period prior to each increase in the | ||||||
| 20 | required minimum wage on January 1. If an employer pays an | ||||||
| 21 | employee more than the required minimum wage and that employee | ||||||
| 22 | previously earned less than the required minimum wage, the | ||||||
| 23 | employer may include the portion that does not exceed the | ||||||
| 24 | required minimum wage as compensation paid in Illinois to | ||||||
| 25 | employees who are paid not more than the required minimum | ||||||
| 26 | wage. | ||||||
| |||||||
| |||||||
| 1 | (1) 25% for reporting periods beginning on or after | ||||||
| 2 | January 1, 2020 and ending on or before December 31, 2020; | ||||||
| 3 | (2) 21% for reporting periods beginning on or after | ||||||
| 4 | January 1, 2021 and ending on or before December 31, 2021; | ||||||
| 5 | (3) 17% for reporting periods beginning on or after | ||||||
| 6 | January 1, 2022 and ending on or before December 31, 2022; | ||||||
| 7 | (4) 13% for reporting periods beginning on or after | ||||||
| 8 | January 1, 2023 and ending on or before December 31, 2023; | ||||||
| 9 | (5) 9% for reporting periods beginning on or after | ||||||
| 10 | January 1, 2024 and ending on or before December 31, 2024; | ||||||
| 11 | (6) 5% for reporting periods beginning on or after | ||||||
| 12 | January 1, 2025 and ending on or before December 31, 2025. | ||||||
| 13 | The amount computed under this subsection may continue to | ||||||
| 14 | be claimed for reporting periods beginning on or after January | ||||||
| 15 | 1, 2026 and: | ||||||
| 16 | (A) ending on or before December 31, 2026 for | ||||||
| 17 | employers with more than 5 employees; or | ||||||
| 18 | (B) ending on or before December 31, 2027 for | ||||||
| 19 | employers with no more than 5 employees. | ||||||
| 20 | "Qualified employee" means an employee who is paid not | ||||||
| 21 | more than the required minimum wage and has an average wage | ||||||
| 22 | paid per hour by the employer during the reporting period | ||||||
| 23 | equal to or greater than his or her average wage paid per hour | ||||||
| 24 | by the employer during each reporting period for the | ||||||
| 25 | immediately preceding 12 months. A new qualified employee is | ||||||
| 26 | deemed to have earned the required minimum wage in the | ||||||
| |||||||
| |||||||
| 1 | preceding reporting period. | ||||||
| 2 | "Reporting period" means the quarter for which a return is | ||||||
| 3 | required to be filed under subsection (b) of this Section. | ||||||
| 4 | (j) For reporting periods beginning on or after January 1, | ||||||
| 5 | 2023, if a private employer grants all of its employees the | ||||||
| 6 | option of taking a paid leave of absence of at least 30 days | ||||||
| 7 | for the purpose of serving as an organ donor or bone marrow | ||||||
| 8 | donor, then the private employer may take a credit against the | ||||||
| 9 | payments due under this Section in an amount equal to the | ||||||
| 10 | amount withheld under this Section with respect to wages paid | ||||||
| 11 | while the employee is on organ donation leave, not to exceed | ||||||
| 12 | $1,000 in withholdings for each employee who takes organ | ||||||
| 13 | donation leave. To be eligible for the credit, such a leave of | ||||||
| 14 | absence must be taken without loss of pay, vacation time, | ||||||
| 15 | compensatory time, personal days, or sick time for at least | ||||||
| 16 | the first 30 days of the leave of absence. The private employer | ||||||
| 17 | shall adopt rules governing organ donation leave, including | ||||||
| 18 | rules that (i) establish conditions and procedures for | ||||||
| 19 | requesting and approving leave and (ii) require medical | ||||||
| 20 | documentation of the proposed organ or bone marrow donation | ||||||
| 21 | before leave is approved by the private employer. A private | ||||||
| 22 | employer must provide, in the manner required by the | ||||||
| 23 | Department, documentation from the employee's medical | ||||||
| 24 | provider, which the private employer receives from the | ||||||
| 25 | employee, that verifies the employee's organ donation. The | ||||||
| 26 | private employer must also provide, in the manner required by | ||||||
| |||||||
| |||||||
| 1 | the Department, documentation that shows that a qualifying | ||||||
| 2 | organ donor leave policy was in place and offered to all | ||||||
| 3 | qualifying employees at the time the leave was taken. For the | ||||||
| 4 | private employer to receive the tax credit, the employee | ||||||
| 5 | taking organ donor leave must allow for the applicable medical | ||||||
| 6 | records to be disclosed to the Department. If the private | ||||||
| 7 | employer cannot provide the required documentation to the | ||||||
| 8 | Department, then the private employer is ineligible for the | ||||||
| 9 | credit under this Section. A private employer must also | ||||||
| 10 | provide, in the form required by the Department, any | ||||||
| 11 | additional documentation or information required by the | ||||||
| 12 | Department to administer the credit under this Section. The | ||||||
| 13 | credit under this subsection (j) shall be taken within one | ||||||
| 14 | year after the date upon which the organ donation leave | ||||||
| 15 | begins. If the leave taken spans into a second tax year, the | ||||||
| 16 | employer qualifies for the allowable credit in the later of | ||||||
| 17 | the 2 years. If the amount of credit exceeds the tax liability | ||||||
| 18 | for the year, the excess may be carried and applied to the tax | ||||||
| 19 | liability for the 3 taxable years following the excess credit | ||||||
| 20 | year. The tax credit shall be applied to the earliest year for | ||||||
| 21 | which there is a tax liability. If there are credits for more | ||||||
| 22 | than one year that are available to offset liability, the | ||||||
| 23 | earlier credit shall be applied first. | ||||||
| 24 | Nothing in this subsection (j) prohibits a private | ||||||
| 25 | employer from providing an unpaid leave of absence to its | ||||||
| 26 | employees for the purpose of serving as an organ donor or bone | ||||||
| |||||||
| |||||||
| 1 | marrow donor; however, if the employer's policy provides for | ||||||
| 2 | fewer than 30 days of paid leave for organ or bone marrow | ||||||
| 3 | donation, then the employer shall not be eligible for the | ||||||
| 4 | credit under this Section. | ||||||
| 5 | As used in this subsection (j): | ||||||
| 6 | "Organ" means any biological tissue of the human body that | ||||||
| 7 | may be donated by a living donor, including, but not limited | ||||||
| 8 | to, the kidney, liver, lung, pancreas, intestine, bone, skin, | ||||||
| 9 | or any subpart of those organs. | ||||||
| 10 | "Organ donor" means a person from whose body an organ is | ||||||
| 11 | taken to be transferred to the body of another person. | ||||||
| 12 | "Private employer" means a sole proprietorship, | ||||||
| 13 | corporation, partnership, limited liability company, or other | ||||||
| 14 | entity with one or more employees. "Private employer" does not | ||||||
| 15 | include a municipality, county, State agency, or other public | ||||||
| 16 | employer. | ||||||
| 17 | This subsection (j) is exempt from the provisions of | ||||||
| 18 | Section 250 of this Act. | ||||||
| 19 | (k) For reporting periods beginning on or after January 1, | ||||||
| 20 | 2025 and before January 1, 2027, an employer may claim a credit | ||||||
| 21 | against payments due under this Section for amounts withheld | ||||||
| 22 | during the first reporting period to occur after the date on | ||||||
| 23 | which a tax credit certificate is issued for a non-profit | ||||||
| 24 | theater production under Section 10 of the Live Theater | ||||||
| 25 | Production Tax Credit Act. The credit shall be equal to the | ||||||
| 26 | amount shown on the certificate, but may not reduce the | ||||||
| |||||||
| |||||||
| 1 | taxpayer's obligation for any payment due under this Article | ||||||
| 2 | to less than zero. If the amount of the credit exceeds the | ||||||
| 3 | total amount due under this Article with respect to amounts | ||||||
| 4 | withheld during the first reporting period to occur after the | ||||||
| 5 | date on which a tax credit certificate is issued, the excess | ||||||
| 6 | may be carried forward and applied against the taxpayer's | ||||||
| 7 | liability under this Section for reporting periods that occur | ||||||
| 8 | in the 5 succeeding calendar years. The excess credit shall be | ||||||
| 9 | applied to the earliest reporting period for which there is a | ||||||
| 10 | payment due under this Article. If there are credits from more | ||||||
| 11 | than one reporting period that are available to offset a | ||||||
| 12 | liability, the earlier credit shall be applied first. The | ||||||
| 13 | Department of Revenue, in cooperation with the Department of | ||||||
| 14 | Commerce and Economic Opportunity, shall adopt rules to | ||||||
| 15 | enforce and administer the provisions of this subsection. | ||||||
| 16 | (Source: P.A. 101-1, eff. 2-19-19; 102-669, eff. 11-16-21; | ||||||
| 17 | 102-700, Article 30, Section 30-5, eff. 4-19-22; 102-700, | ||||||
| 18 | Article 110, Section 110-905, eff. 4-19-22; 102-1125, eff. | ||||||
| 19 | 2-3-23.)
| ||||||
| 20 | ARTICLE 50. | ||||||
| 21 | Section 50-1. Short title. This Act may be cited as the | ||||||
| 22 | Music and Musicians Tax Credit and Jobs Act. References in | ||||||
| 23 | this Article to "this Act" mean this Article.
| ||||||
| |||||||
| |||||||
| 1 | Section 50-5. Purpose. The State's economy depends heavily | ||||||
| 2 | on music, professional musicians, music teachers, and | ||||||
| 3 | educators. Illinois is a cultural crown jewel of the United | ||||||
| 4 | States. Illinois and Chicago boast a robust history and | ||||||
| 5 | community of creative artists, writers, musicians, architects, | ||||||
| 6 | orchestras, live music and entertainment venues, civic operas, | ||||||
| 7 | recording studios, and universities. The COVID-19 pandemic and | ||||||
| 8 | the economic fallout that ensued brought on especially | ||||||
| 9 | difficult circumstances for the live entertainment industry at | ||||||
| 10 | large. Throughout the State, this has meant the closure of and | ||||||
| 11 | overall decrease in culturally engaging aspects of Illinois | ||||||
| 12 | cities from Cairo to Chicago. | ||||||
| 13 | According to the Americans for the Arts Action Fund, arts | ||||||
| 14 | and culture represent 3.1% of the State's gross domestic | ||||||
| 15 | product and 190,078 jobs. In fact, in 2020, Illinois arts and | ||||||
| 16 | culture was larger than the State's agriculture industry. In | ||||||
| 17 | 2015, nonprofit arts organizations in the State generated | ||||||
| 18 | $4,000,000,000 in economic activity that supported 111,068 | ||||||
| 19 | jobs and generated $478,500,000 in State and local government | ||||||
| 20 | revenue. In Chicago specifically, nonprofit arts groups | ||||||
| 21 | generated $3,200,000,000 in total economic activity and | ||||||
| 22 | $336,500,000 in State and local government revenue. Audiences | ||||||
| 23 | exceeded 36,000,000 people. | ||||||
| 24 | Yet, during the COVID-19 pandemic, the arts suffered. As a | ||||||
| 25 | result, Illinois arts and culture value added decreased by 9% | ||||||
| 26 | between 2019 and 2020 and employment decreased by 12%. | ||||||
| |||||||
| |||||||
| 1 | Ultimately, $3,200,000,000 and 26,644 jobs were lost. Even as | ||||||
| 2 | live performances have resumed, audience sizes remain below | ||||||
| 3 | pre-pandemic levels. Regional theaters, local orchestras, | ||||||
| 4 | opera houses, and performing arts organizations are reporting | ||||||
| 5 | persistent drops in attendance. | ||||||
| 6 | It is the policy of this State to promote and encourage the | ||||||
| 7 | training and hiring of Illinois residents who represent the | ||||||
| 8 | diversity of the Illinois population through the creation and | ||||||
| 9 | implementation of training, education, and recruitment | ||||||
| 10 | programs organized in cooperation with Illinois colleges and | ||||||
| 11 | universities, labor organizations, and the commercial | ||||||
| 12 | for-profit music industry.
| ||||||
| 13 | Section 50-10. Definitions. | ||||||
| 14 | "Department" means the Department of Commerce and Economic | ||||||
| 15 | Opportunity. | ||||||
| 16 | "Expenditure in the State" means (i) an expenditure to | ||||||
| 17 | acquire, from a source within the State, property that is | ||||||
| 18 | subject to tax under the Use Tax Act, the Service Use Tax Act, | ||||||
| 19 | the Service Occupation Tax Act, or the Retailers' Occupation | ||||||
| 20 | Tax Act or (ii) an expenditure for compensation for services | ||||||
| 21 | performed within the State that is subject to State income tax | ||||||
| 22 | under the Illinois Income Tax Act. | ||||||
| 23 | "Illinois labor expenditure" means gross salary or wages, | ||||||
| 24 | including, but not limited to, taxes, benefits, and any other | ||||||
| 25 | consideration incurred or paid to artist employees of the | ||||||
| |||||||
| |||||||
| 1 | applicant for services rendered to and on behalf of the | ||||||
| 2 | qualified music company, provided that the expenditure is: | ||||||
| 3 | (1) incurred or paid by the applicant on or after the | ||||||
| 4 | effective date of this Act for services related to any | ||||||
| 5 | portion of a qualified music company from rehearsals, | ||||||
| 6 | performances, and any other qualified music company | ||||||
| 7 | related activities; | ||||||
| 8 | (2) limited to the first $100,000 of wages incurred or | ||||||
| 9 | paid to each employee of a qualified music production in | ||||||
| 10 | each tax year; | ||||||
| 11 | (3) paid in the tax year for which the applicant is | ||||||
| 12 | claiming the tax credit award; | ||||||
| 13 | (4) paid to persons residing in Illinois at the time | ||||||
| 14 | payments were made; and | ||||||
| 15 | (5) reasonable under the circumstances. | ||||||
| 16 | "Qualified music company" means an entity that (i) is | ||||||
| 17 | authorized to do business in Illinois, (ii) is engaged | ||||||
| 18 | directly or indirectly in the production, distribution, or | ||||||
| 19 | promotion of music, (iii) is certified by the Department as | ||||||
| 20 | meeting the eligibility requirements of this Act, and (iv) has | ||||||
| 21 | executed a contract with the Department providing the terms | ||||||
| 22 | and conditions for its participation. | ||||||
| 23 | "Qualified music company payroll" or "QMC payroll" means | ||||||
| 24 | wages reported by the qualified music company in box 1 of each | ||||||
| 25 | W-2 form prepared for an employee of the qualified music | ||||||
| 26 | company who is an Illinois resident. | ||||||
| |||||||
| |||||||
| 1 | "Resident copyright" means the copyright of a musical | ||||||
| 2 | composition written by an Illinois resident or owned by an | ||||||
| 3 | Illinois-domiciled music company, as evidenced by documents of | ||||||
| 4 | ownership, including, but not limited to, registration with | ||||||
| 5 | the United States Copyright Office. | ||||||
| 6 | "Sound recording" means a recording of music, poetry, or a | ||||||
| 7 | spoken-word performance made, in whole or in part, in | ||||||
| 8 | Illinois. "Sound recording" does not include the audio | ||||||
| 9 | portions of dialogue or words spoken and recorded as part of | ||||||
| 10 | television news coverage or athletic events. | ||||||
| 11 | "Sound recording production company" means a company | ||||||
| 12 | engaged in the business of producing sound recordings. "Sound | ||||||
| 13 | recording production company" does not include any person or | ||||||
| 14 | company, or any company owned, affiliated, or controlled, in | ||||||
| 15 | whole or in part, by any company or person, that is in default | ||||||
| 16 | on a loan made by the State or a loan guaranteed by the State, | ||||||
| 17 | nor which has ever declared bankruptcy under which an | ||||||
| 18 | obligation of the company or person to pay or repay public | ||||||
| 19 | funds or moneys was discharged as a part of the bankruptcy. | ||||||
| 20 | "State-certified production" means a sound recording | ||||||
| 21 | production, or a series of productions, including but not | ||||||
| 22 | limited to master and demonstration recordings, occurring over | ||||||
| 23 | the course of a 12-month period, and the base | ||||||
| 24 | production-related investment that is approved by the | ||||||
| 25 | Department within 180 days after receipt by the Department of | ||||||
| 26 | a complete application for initial certification of a | ||||||
| |||||||
| |||||||
| 1 | production. If the production is not approved within 180 days, | ||||||
| 2 | the Department shall provide a written report to the Senate | ||||||
| 3 | Executive Committee and the House Executive Committee that | ||||||
| 4 | states the reason why the production has not been approved. | ||||||
| 5 | "Tax credit award" means the issuance to a taxpayer by the | ||||||
| 6 | Department of a tax credit award against the taxes imposed by | ||||||
| 7 | subsections (a) and (b) of Section 201 of the Illinois Income | ||||||
| 8 | Tax Act as provided in this Act.
| ||||||
| 9 | Section 50-15. Powers of the Department. The Department, | ||||||
| 10 | in addition to those powers granted under the Civil | ||||||
| 11 | Administrative Code of Illinois, is granted and has all the | ||||||
| 12 | powers necessary or convenient to carry out and effectuate the | ||||||
| 13 | purposes and provisions of this Act, including, but not | ||||||
| 14 | limited to, the power and authority to: | ||||||
| 15 | (1) adopt rules that are necessary and appropriate for | ||||||
| 16 | the administration of this Act; | ||||||
| 17 | (2) establish forms for applications, notifications, | ||||||
| 18 | contracts, or any other agreements with respect to tax | ||||||
| 19 | credits under this Act and to accept applications for tax | ||||||
| 20 | credits under this Act at any time during the year; | ||||||
| 21 | (3) assist applicants for tax credits under this Act | ||||||
| 22 | to promote, foster, and support sound recording and live | ||||||
| 23 | theater development and production and its related job | ||||||
| 24 | creation or retention within the State; | ||||||
| 25 | (4) gather information and conduct inquiries, as | ||||||
| |||||||
| |||||||
| 1 | provided in this Act, required for the Department to | ||||||
| 2 | comply with the provisions of this Act and, without | ||||||
| 3 | limitation, to obtain information with respect to | ||||||
| 4 | applicants for the purpose of making any designations or | ||||||
| 5 | certifications necessary or desirable to assist the | ||||||
| 6 | Department with any recommendation or guidance in the | ||||||
| 7 | furtherance of the purposes of this Act and relating to | ||||||
| 8 | applicants' participation in training, education, and | ||||||
| 9 | recruitment programs that are organized in cooperation | ||||||
| 10 | with Illinois colleges and universities or labor | ||||||
| 11 | organizations designed to promote and encourage the | ||||||
| 12 | training and hiring of Illinois residents who represent | ||||||
| 13 | the diversity of the Illinois population; | ||||||
| 14 | (5) provide for sufficient personnel to permit | ||||||
| 15 | administrative, staffing, operating, and related support | ||||||
| 16 | required to adequately discharge the Department's duties | ||||||
| 17 | and responsibilities under this Act from funds as may be | ||||||
| 18 | appropriated by the General Assembly for the | ||||||
| 19 | administration of this Act; and | ||||||
| 20 | (6) require that the applicant at all times keep | ||||||
| 21 | proper books and records of accounts relating to the tax | ||||||
| 22 | credit award, in accordance with generally accepted | ||||||
| 23 | accounting principles consistently applied, and make those | ||||||
| 24 | books and records available for reasonable Department | ||||||
| 25 | inspection and audit, upon reasonable written request by | ||||||
| 26 | the Department, during the applicant's normal business | ||||||
| |||||||
| |||||||
| 1 | hours. Any documents or data made available to the | ||||||
| 2 | Department or received by the Department from the | ||||||
| 3 | applicant by any agent, employee, officer, or service | ||||||
| 4 | provider shall be deemed confidential and shall not | ||||||
| 5 | constitute public records to the extent that the documents | ||||||
| 6 | or data consist of commercial or financial information | ||||||
| 7 | regarding the operation by the applicant of any theater or | ||||||
| 8 | any accredited theater production or any recipient of any | ||||||
| 9 | tax credit award under this Act.
| ||||||
| 10 | Section 50-20. Application for certification of qualified | ||||||
| 11 | music company. Any applicant that operates a qualified music | ||||||
| 12 | company located in the State or is proposing to operate a | ||||||
| 13 | qualified music company in the State may apply to the | ||||||
| 14 | Department to have the qualified music company certified by | ||||||
| 15 | the Department as a qualified music company.
| ||||||
| 16 | Section 50-25. Review of applications for qualified music | ||||||
| 17 | company certificates. | ||||||
| 18 | (a) The Department shall issue a qualified music company | ||||||
| 19 | certificate to an applicant if it finds that a preponderance | ||||||
| 20 | of the following conditions exists: | ||||||
| 21 | (1) the applicant is engaged directly or indirectly in | ||||||
| 22 | the production, distribution, and promotion of music; | ||||||
| 23 | (2) the applicant intends to make the expenditure in | ||||||
| 24 | the State required for certification of the qualified | ||||||
| |||||||
| |||||||
| 1 | music company; | ||||||
| 2 | (3) the applicant's qualified music company is | ||||||
| 3 | economically sound and will benefit the people of the | ||||||
| 4 | State of Illinois by increasing opportunities for | ||||||
| 5 | employment and will strengthen the economy of Illinois; | ||||||
| 6 | (4) the following requirements related to the | ||||||
| 7 | implementation of a diversity plan have been met: | ||||||
| 8 | (A) the applicant has filed with the Department a | ||||||
| 9 | diversity plan outlining specific goals for hiring | ||||||
| 10 | Illinois labor expenditure eligible minority persons | ||||||
| 11 | and women, as defined in the Business Enterprise for | ||||||
| 12 | Minorities, Women, and Persons with Disabilities Act, | ||||||
| 13 | and for using vendors receiving certification under | ||||||
| 14 | the Business Enterprise for Minorities, Women, and | ||||||
| 15 | Persons with Disabilities Act; | ||||||
| 16 | (B) the Department has approved the plan as | ||||||
| 17 | meeting the requirements established by the Department | ||||||
| 18 | and verified that the applicant has met or made good | ||||||
| 19 | faith efforts in achieving those goals; and | ||||||
| 20 | (C) the Department has adopted any rules that are | ||||||
| 21 | necessary to ensure compliance with the provisions set | ||||||
| 22 | forth in this paragraph (4) and any rules that are | ||||||
| 23 | necessary to show that the applicant's plan reflects | ||||||
| 24 | the diversity of the population of this State; | ||||||
| 25 | (5) the applicant's qualified music company | ||||||
| 26 | application indicates whether the applicant intends to | ||||||
| |||||||
| |||||||
| 1 | participate in training, education, and recruitment | ||||||
| 2 | programs that are organized in cooperation with Illinois | ||||||
| 3 | colleges and universities, labor organizations, and the | ||||||
| 4 | holders of qualified music company certificates and are | ||||||
| 5 | designed to promote and encourage the training and hiring | ||||||
| 6 | of Illinois residents who represent the diversity of | ||||||
| 7 | Illinois; and | ||||||
| 8 | (6) the tax credit award will result in an overall | ||||||
| 9 | positive impact to the State, as determined by the | ||||||
| 10 | Department using the best available data. | ||||||
| 11 | (b) If any of the provisions in this Section conflict with | ||||||
| 12 | any existing collective bargaining agreements, the terms and | ||||||
| 13 | conditions of those collective bargaining agreements shall | ||||||
| 14 | control. | ||||||
| 15 | (c) The Department shall act expeditiously regarding | ||||||
| 16 | approval of applications for qualified music companies so as | ||||||
| 17 | to accommodate the operations and needs of those companies.
| ||||||
| 18 | Section 50-30. Training programs for skills in critical | ||||||
| 19 | demand. To accomplish the purposes of this Act, the Department | ||||||
| 20 | may use the training programs provided under Section 605-800 | ||||||
| 21 | of the Department of Commerce and Economic Opportunity Law of | ||||||
| 22 | the Civil Administrative Code of Illinois.
| ||||||
| 23 | Section 50-35. Issuance of tax credit award certificate. | ||||||
| 24 | (a) In order to qualify for a tax credit award under this | ||||||
| |||||||
| |||||||
| 1 | Act, an applicant must file an application for each qualified | ||||||
| 2 | music company at each of the applicant's qualified facilities, | ||||||
| 3 | on forms prescribed by the Department, providing information | ||||||
| 4 | necessary to calculate the tax credit award and any additional | ||||||
| 5 | information as reasonably required by the Department. | ||||||
| 6 | (b) Upon satisfactory review of the application, the | ||||||
| 7 | Department shall issue a tax credit award certificate stating | ||||||
| 8 | the amount of the tax credit award to which the applicant is | ||||||
| 9 | entitled for that tax year and shall contemporaneously notify | ||||||
| 10 | the applicant and the Department of Revenue. | ||||||
| 11 | (c) For tax years beginning on or after January 1, 2025, a | ||||||
| 12 | taxpayer who has been awarded a tax credit under paragraph (b) | ||||||
| 13 | of this Section is entitled to a credit against the taxes | ||||||
| 14 | imposed under subsections (a) and (b) of Section 201 of the | ||||||
| 15 | Illinois Income Tax Act.
| ||||||
| 16 | Section 50-40. Amount and payment of the tax credit award. | ||||||
| 17 | (a) For taxable years beginning on or after January 1, | ||||||
| 18 | 2025, the Department may award tax credit awards to qualified | ||||||
| 19 | music companies. The award may not exceed 10% of the Illinois | ||||||
| 20 | labor expenditures for the State-certified production if the | ||||||
| 21 | QMC payroll of the qualified music company for the taxable | ||||||
| 22 | year does not exceed $150,000 or 15% of the Illinois labor | ||||||
| 23 | expenditures for the State-certified production if the QMC | ||||||
| 24 | payroll of the qualified music company for the taxable year | ||||||
| 25 | exceeds $150,000, plus all of the following: | ||||||
| |||||||
| |||||||
| 1 | (1) an additional 15% of the Illinois labor | ||||||
| 2 | expenditures for the State-certified production generated | ||||||
| 3 | by the employment of Illinois residents in geographic | ||||||
| 4 | areas of high poverty or high unemployment in each tax | ||||||
| 5 | year, as determined by the Department; and | ||||||
| 6 | (2) an additional 7% of the Illinois labor | ||||||
| 7 | expenditures for the State-certified production generated | ||||||
| 8 | by the employment of individuals who are employed at a | ||||||
| 9 | wage of no less than the general prevailing hourly rate as | ||||||
| 10 | paid for work of a similar character in the locality in | ||||||
| 11 | which the work is performed; and | ||||||
| 12 | (3) an additional 7% of the Illinois labor | ||||||
| 13 | expenditures for the State-certified production incurred | ||||||
| 14 | by a qualified music company and spent on post-production | ||||||
| 15 | sound recording for television or film work completed in | ||||||
| 16 | Illinois. | ||||||
| 17 | (b) To the extent that the base investment by a qualified | ||||||
| 18 | music company is expended on a sound recording production of a | ||||||
| 19 | resident copyright, the investor shall be allowed an | ||||||
| 20 | additional 10% increase in the base investment rate. | ||||||
| 21 | (c) The aggregate amount of credits certified for all | ||||||
| 22 | investors pursuant to this Section during any calendar year | ||||||
| 23 | shall not exceed $1,000,000. No more than $200,000 in tax | ||||||
| 24 | credits may be granted per calendar year for any single | ||||||
| 25 | qualified music company. | ||||||
| 26 | (d) A business is eligible for participation in the | ||||||
| |||||||
| |||||||
| 1 | program if the business meets all of the following criteria: | ||||||
| 2 | (1) The business is engaged directly or indirectly in | ||||||
| 3 | the production, distribution, and promotion of music. | ||||||
| 4 | (2) The business is approved by the Director of | ||||||
| 5 | Commerce and Economic Opportunity. | ||||||
| 6 | (e) Upon approval of a tax credit award under this Act, the | ||||||
| 7 | Department shall issue a tax credit certificate to the | ||||||
| 8 | applicant.
| ||||||
| 9 | Section 50-45. Qualified music program evaluation and | ||||||
| 10 | reports. | ||||||
| 11 | (a) The Department's qualified music program tax credit | ||||||
| 12 | award evaluation must include: | ||||||
| 13 | (1) an assessment of the effectiveness of the program | ||||||
| 14 | in creating and retaining new jobs in Illinois; | ||||||
| 15 | (2) an assessment of the revenue impact of the | ||||||
| 16 | program; | ||||||
| 17 | (3) in the discretion of the Department, a review of | ||||||
| 18 | the practices and experiences of other states or nations | ||||||
| 19 | with similar programs; and | ||||||
| 20 | (4) an assessment of the overall success of the | ||||||
| 21 | program. | ||||||
| 22 | The Department may make a recommendation to extend, modify, or | ||||||
| 23 | not extend the program based on the evaluation. | ||||||
| 24 | (b) At the end of each fiscal quarter, the Department | ||||||
| 25 | shall submit to the General Assembly a report that includes, | ||||||
| |||||||
| |||||||
| 1 | without limitation: | ||||||
| 2 | (1) an assessment of the economic impact of the | ||||||
| 3 | program, including the number of jobs created and | ||||||
| 4 | retained, and whether the job positions are entry level, | ||||||
| 5 | management, vendor, or production related; | ||||||
| 6 | (2) the amount of qualified music company spending | ||||||
| 7 | brought to Illinois, including the amount of spending and | ||||||
| 8 | type of Illinois vendors hired in connection with a | ||||||
| 9 | qualified music company; and | ||||||
| 10 | (3) a determination of whether those receiving | ||||||
| 11 | qualifying Illinois labor expenditure salaries or wages | ||||||
| 12 | reflect the geographic, racial and ethnic, gender, and | ||||||
| 13 | income level diversity of the State of Illinois. | ||||||
| 14 | (c) At the end of each fiscal year, the Department shall | ||||||
| 15 | submit to the General Assembly a report that includes, without | ||||||
| 16 | limitation: | ||||||
| 17 | (1) the identification of each vendor that provided | ||||||
| 18 | goods or services that were included in a qualified music | ||||||
| 19 | company's Illinois spending; | ||||||
| 20 | (2) a statement of the amount paid to each identified | ||||||
| 21 | vendor by the qualified music program and whether the | ||||||
| 22 | vendor is a minority-owned or women-owned business as | ||||||
| 23 | defined in Section 2 of the Business Enterprise for | ||||||
| 24 | Minorities, Women, and Persons with Disabilities Act; and | ||||||
| 25 | (3) a description of the steps taken by the Department | ||||||
| 26 | to encourage qualified music company to use vendors who | ||||||
| |||||||
| |||||||
| 1 | are minority-owned or women-owned businesses.
| ||||||
| 2 | Section 50-50. Program terms and conditions. Any | ||||||
| 3 | documentary materials or data made available or received from | ||||||
| 4 | an applicant by any agent or employee of the Department are | ||||||
| 5 | confidential and are not public records to the extent that the | ||||||
| 6 | materials or data consist of commercial or financial | ||||||
| 7 | information regarding the operation of or the production of | ||||||
| 8 | the applicant or recipient of any tax credit award under this | ||||||
| 9 | Act.
| ||||||
| 10 | ARTICLE 52. | ||||||
| 11 | Section 52-3. The Freedom of Information Act is amended by | ||||||
| 12 | changing Section 7.5 as follows:
| ||||||
| 13 | (5 ILCS 140/7.5) | ||||||
| 14 | (Text of Section before amendment by P.A. 103-472) | ||||||
| 15 | Sec. 7.5. Statutory exemptions. To the extent provided for | ||||||
| 16 | by the statutes referenced below, the following shall be | ||||||
| 17 | exempt from inspection and copying: | ||||||
| 18 | (a) All information determined to be confidential | ||||||
| 19 | under Section 4002 of the Technology Advancement and | ||||||
| 20 | Development Act. | ||||||
| 21 | (b) Library circulation and order records identifying | ||||||
| 22 | library users with specific materials under the Library | ||||||
| |||||||
| |||||||
| 1 | Records Confidentiality Act. | ||||||
| 2 | (c) Applications, related documents, and medical | ||||||
| 3 | records received by the Experimental Organ Transplantation | ||||||
| 4 | Procedures Board and any and all documents or other | ||||||
| 5 | records prepared by the Experimental Organ Transplantation | ||||||
| 6 | Procedures Board or its staff relating to applications it | ||||||
| 7 | has received. | ||||||
| 8 | (d) Information and records held by the Department of | ||||||
| 9 | Public Health and its authorized representatives relating | ||||||
| 10 | to known or suspected cases of sexually transmissible | ||||||
| 11 | disease or any information the disclosure of which is | ||||||
| 12 | restricted under the Illinois Sexually Transmissible | ||||||
| 13 | Disease Control Act. | ||||||
| 14 | (e) Information the disclosure of which is exempted | ||||||
| 15 | under Section 30 of the Radon Industry Licensing Act. | ||||||
| 16 | (f) Firm performance evaluations under Section 55 of | ||||||
| 17 | the Architectural, Engineering, and Land Surveying | ||||||
| 18 | Qualifications Based Selection Act. | ||||||
| 19 | (g) Information the disclosure of which is restricted | ||||||
| 20 | and exempted under Section 50 of the Illinois Prepaid | ||||||
| 21 | Tuition Act. | ||||||
| 22 | (h) Information the disclosure of which is exempted | ||||||
| 23 | under the State Officials and Employees Ethics Act, and | ||||||
| 24 | records of any lawfully created State or local inspector | ||||||
| 25 | general's office that would be exempt if created or | ||||||
| 26 | obtained by an Executive Inspector General's office under | ||||||
| |||||||
| |||||||
| 1 | that Act. | ||||||
| 2 | (i) Information contained in a local emergency energy | ||||||
| 3 | plan submitted to a municipality in accordance with a | ||||||
| 4 | local emergency energy plan ordinance that is adopted | ||||||
| 5 | under Section 11-21.5-5 of the Illinois Municipal Code. | ||||||
| 6 | (j) Information and data concerning the distribution | ||||||
| 7 | of surcharge moneys collected and remitted by carriers | ||||||
| 8 | under the Emergency Telephone System Act. | ||||||
| 9 | (k) Law enforcement officer identification information | ||||||
| 10 | or driver identification information compiled by a law | ||||||
| 11 | enforcement agency or the Department of Transportation | ||||||
| 12 | under Section 11-212 of the Illinois Vehicle Code. | ||||||
| 13 | (l) Records and information provided to a residential | ||||||
| 14 | health care facility resident sexual assault and death | ||||||
| 15 | review team or the Executive Council under the Abuse | ||||||
| 16 | Prevention Review Team Act. | ||||||
| 17 | (m) Information provided to the predatory lending | ||||||
| 18 | database created pursuant to Article 3 of the Residential | ||||||
| 19 | Real Property Disclosure Act, except to the extent | ||||||
| 20 | authorized under that Article. | ||||||
| 21 | (n) Defense budgets and petitions for certification of | ||||||
| 22 | compensation and expenses for court appointed trial | ||||||
| 23 | counsel as provided under Sections 10 and 15 of the | ||||||
| 24 | Capital Crimes Litigation Act (repealed). This subsection | ||||||
| 25 | (n) shall apply until the conclusion of the trial of the | ||||||
| 26 | case, even if the prosecution chooses not to pursue the | ||||||
| |||||||
| |||||||
| 1 | death penalty prior to trial or sentencing. | ||||||
| 2 | (o) Information that is prohibited from being | ||||||
| 3 | disclosed under Section 4 of the Illinois Health and | ||||||
| 4 | Hazardous Substances Registry Act. | ||||||
| 5 | (p) Security portions of system safety program plans, | ||||||
| 6 | investigation reports, surveys, schedules, lists, data, or | ||||||
| 7 | information compiled, collected, or prepared by or for the | ||||||
| 8 | Department of Transportation under Sections 2705-300 and | ||||||
| 9 | 2705-616 of the Department of Transportation Law of the | ||||||
| 10 | Civil Administrative Code of Illinois, the Regional | ||||||
| 11 | Transportation Authority under Section 2.11 of the | ||||||
| 12 | Regional Transportation Authority Act, or the St. Clair | ||||||
| 13 | County Transit District under the Bi-State Transit Safety | ||||||
| 14 | Act (repealed). | ||||||
| 15 | (q) Information prohibited from being disclosed by the | ||||||
| 16 | Personnel Record Review Act. | ||||||
| 17 | (r) Information prohibited from being disclosed by the | ||||||
| 18 | Illinois School Student Records Act. | ||||||
| 19 | (s) Information the disclosure of which is restricted | ||||||
| 20 | under Section 5-108 of the Public Utilities Act. | ||||||
| 21 | (t) (Blank). | ||||||
| 22 | (u) Records and information provided to an independent | ||||||
| 23 | team of experts under the Developmental Disability and | ||||||
| 24 | Mental Health Safety Act (also known as Brian's Law). | ||||||
| 25 | (v) Names and information of people who have applied | ||||||
| 26 | for or received Firearm Owner's Identification Cards under | ||||||
| |||||||
| |||||||
| 1 | the Firearm Owners Identification Card Act or applied for | ||||||
| 2 | or received a concealed carry license under the Firearm | ||||||
| 3 | Concealed Carry Act, unless otherwise authorized by the | ||||||
| 4 | Firearm Concealed Carry Act; and databases under the | ||||||
| 5 | Firearm Concealed Carry Act, records of the Concealed | ||||||
| 6 | Carry Licensing Review Board under the Firearm Concealed | ||||||
| 7 | Carry Act, and law enforcement agency objections under the | ||||||
| 8 | Firearm Concealed Carry Act. | ||||||
| 9 | (v-5) Records of the Firearm Owner's Identification | ||||||
| 10 | Card Review Board that are exempted from disclosure under | ||||||
| 11 | Section 10 of the Firearm Owners Identification Card Act. | ||||||
| 12 | (w) Personally identifiable information which is | ||||||
| 13 | exempted from disclosure under subsection (g) of Section | ||||||
| 14 | 19.1 of the Toll Highway Act. | ||||||
| 15 | (x) Information which is exempted from disclosure | ||||||
| 16 | under Section 5-1014.3 of the Counties Code or Section | ||||||
| 17 | 8-11-21 of the Illinois Municipal Code. | ||||||
| 18 | (y) Confidential information under the Adult | ||||||
| 19 | Protective Services Act and its predecessor enabling | ||||||
| 20 | statute, the Elder Abuse and Neglect Act, including | ||||||
| 21 | information about the identity and administrative finding | ||||||
| 22 | against any caregiver of a verified and substantiated | ||||||
| 23 | decision of abuse, neglect, or financial exploitation of | ||||||
| 24 | an eligible adult maintained in the Registry established | ||||||
| 25 | under Section 7.5 of the Adult Protective Services Act. | ||||||
| 26 | (z) Records and information provided to a fatality | ||||||
| |||||||
| |||||||
| 1 | review team or the Illinois Fatality Review Team Advisory | ||||||
| 2 | Council under Section 15 of the Adult Protective Services | ||||||
| 3 | Act. | ||||||
| 4 | (aa) Information which is exempted from disclosure | ||||||
| 5 | under Section 2.37 of the Wildlife Code. | ||||||
| 6 | (bb) Information which is or was prohibited from | ||||||
| 7 | disclosure by the Juvenile Court Act of 1987. | ||||||
| 8 | (cc) Recordings made under the Law Enforcement | ||||||
| 9 | Officer-Worn Body Camera Act, except to the extent | ||||||
| 10 | authorized under that Act. | ||||||
| 11 | (dd) Information that is prohibited from being | ||||||
| 12 | disclosed under Section 45 of the Condominium and Common | ||||||
| 13 | Interest Community Ombudsperson Act. | ||||||
| 14 | (ee) Information that is exempted from disclosure | ||||||
| 15 | under Section 30.1 of the Pharmacy Practice Act. | ||||||
| 16 | (ff) Information that is exempted from disclosure | ||||||
| 17 | under the Revised Uniform Unclaimed Property Act. | ||||||
| 18 | (gg) Information that is prohibited from being | ||||||
| 19 | disclosed under Section 7-603.5 of the Illinois Vehicle | ||||||
| 20 | Code. | ||||||
| 21 | (hh) Records that are exempt from disclosure under | ||||||
| 22 | Section 1A-16.7 of the Election Code. | ||||||
| 23 | (ii) Information which is exempted from disclosure | ||||||
| 24 | under Section 2505-800 of the Department of Revenue Law of | ||||||
| 25 | the Civil Administrative Code of Illinois. | ||||||
| 26 | (jj) Information and reports that are required to be | ||||||
| |||||||
| |||||||
| 1 | submitted to the Department of Labor by registering day | ||||||
| 2 | and temporary labor service agencies but are exempt from | ||||||
| 3 | disclosure under subsection (a-1) of Section 45 of the Day | ||||||
| 4 | and Temporary Labor Services Act. | ||||||
| 5 | (kk) Information prohibited from disclosure under the | ||||||
| 6 | Seizure and Forfeiture Reporting Act. | ||||||
| 7 | (ll) Information the disclosure of which is restricted | ||||||
| 8 | and exempted under Section 5-30.8 of the Illinois Public | ||||||
| 9 | Aid Code. | ||||||
| 10 | (mm) Records that are exempt from disclosure under | ||||||
| 11 | Section 4.2 of the Crime Victims Compensation Act. | ||||||
| 12 | (nn) Information that is exempt from disclosure under | ||||||
| 13 | Section 70 of the Higher Education Student Assistance Act. | ||||||
| 14 | (oo) Communications, notes, records, and reports | ||||||
| 15 | arising out of a peer support counseling session | ||||||
| 16 | prohibited from disclosure under the First Responders | ||||||
| 17 | Suicide Prevention Act. | ||||||
| 18 | (pp) Names and all identifying information relating to | ||||||
| 19 | an employee of an emergency services provider or law | ||||||
| 20 | enforcement agency under the First Responders Suicide | ||||||
| 21 | Prevention Act. | ||||||
| 22 | (qq) Information and records held by the Department of | ||||||
| 23 | Public Health and its authorized representatives collected | ||||||
| 24 | under the Reproductive Health Act. | ||||||
| 25 | (rr) Information that is exempt from disclosure under | ||||||
| 26 | the Cannabis Regulation and Tax Act. | ||||||
| |||||||
| |||||||
| 1 | (ss) Data reported by an employer to the Department of | ||||||
| 2 | Human Rights pursuant to Section 2-108 of the Illinois | ||||||
| 3 | Human Rights Act. | ||||||
| 4 | (tt) Recordings made under the Children's Advocacy | ||||||
| 5 | Center Act, except to the extent authorized under that | ||||||
| 6 | Act. | ||||||
| 7 | (uu) Information that is exempt from disclosure under | ||||||
| 8 | Section 50 of the Sexual Assault Evidence Submission Act. | ||||||
| 9 | (vv) Information that is exempt from disclosure under | ||||||
| 10 | subsections (f) and (j) of Section 5-36 of the Illinois | ||||||
| 11 | Public Aid Code. | ||||||
| 12 | (ww) Information that is exempt from disclosure under | ||||||
| 13 | Section 16.8 of the State Treasurer Act. | ||||||
| 14 | (xx) Information that is exempt from disclosure or | ||||||
| 15 | information that shall not be made public under the | ||||||
| 16 | Illinois Insurance Code. | ||||||
| 17 | (yy) Information prohibited from being disclosed under | ||||||
| 18 | the Illinois Educational Labor Relations Act. | ||||||
| 19 | (zz) Information prohibited from being disclosed under | ||||||
| 20 | the Illinois Public Labor Relations Act. | ||||||
| 21 | (aaa) Information prohibited from being disclosed | ||||||
| 22 | under Section 1-167 of the Illinois Pension Code. | ||||||
| 23 | (bbb) Information that is prohibited from disclosure | ||||||
| 24 | by the Illinois Police Training Act and the Illinois State | ||||||
| 25 | Police Act. | ||||||
| 26 | (ccc) Records exempt from disclosure under Section | ||||||
| |||||||
| |||||||
| 1 | 2605-304 of the Illinois State Police Law of the Civil | ||||||
| 2 | Administrative Code of Illinois. | ||||||
| 3 | (ddd) Information prohibited from being disclosed | ||||||
| 4 | under Section 35 of the Address Confidentiality for | ||||||
| 5 | Victims of Domestic Violence, Sexual Assault, Human | ||||||
| 6 | Trafficking, or Stalking Act. | ||||||
| 7 | (eee) Information prohibited from being disclosed | ||||||
| 8 | under subsection (b) of Section 75 of the Domestic | ||||||
| 9 | Violence Fatality Review Act. | ||||||
| 10 | (fff) Images from cameras under the Expressway Camera | ||||||
| 11 | Act. This subsection (fff) is inoperative on and after | ||||||
| 12 | July 1, 2025. | ||||||
| 13 | (ggg) Information prohibited from disclosure under | ||||||
| 14 | paragraph (3) of subsection (a) of Section 14 of the Nurse | ||||||
| 15 | Agency Licensing Act. | ||||||
| 16 | (hhh) Information submitted to the Illinois State | ||||||
| 17 | Police in an affidavit or application for an assault | ||||||
| 18 | weapon endorsement, assault weapon attachment endorsement, | ||||||
| 19 | .50 caliber rifle endorsement, or .50 caliber cartridge | ||||||
| 20 | endorsement under the Firearm Owners Identification Card | ||||||
| 21 | Act. | ||||||
| 22 | (iii) Data exempt from disclosure under Section 50 of | ||||||
| 23 | the School Safety Drill Act. | ||||||
| 24 | (jjj) (hhh) Information exempt from disclosure under | ||||||
| 25 | Section 30 of the Insurance Data Security Law. | ||||||
| 26 | (kkk) (iii) Confidential business information | ||||||
| |||||||
| |||||||
| 1 | prohibited from disclosure under Section 45 of the Paint | ||||||
| 2 | Stewardship Act. | ||||||
| 3 | (lll) (Reserved). | ||||||
| 4 | (mmm) (iii) Information prohibited from being | ||||||
| 5 | disclosed under subsection (e) of Section 1-129 of the | ||||||
| 6 | Illinois Power Agency Act. | ||||||
| 7 | (nnn) Materials received by the Department of Commerce | ||||||
| 8 | and Economic Opportunity that are confidential under the | ||||||
| 9 | Music and Musicians Tax Credit and Jobs Act. | ||||||
| 10 | (Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22; | ||||||
| 11 | 102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff. | ||||||
| 12 | 8-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22; | ||||||
| 13 | 102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff. | ||||||
| 14 | 6-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372, | ||||||
| 15 | eff. 1-1-24; 103-508, eff. 8-4-23; 103-580, eff. 12-8-23; | ||||||
| 16 | revised 1-2-24.)
| ||||||
| 17 | (Text of Section after amendment by P.A. 103-472) | ||||||
| 18 | Sec. 7.5. Statutory exemptions. To the extent provided for | ||||||
| 19 | by the statutes referenced below, the following shall be | ||||||
| 20 | exempt from inspection and copying: | ||||||
| 21 | (a) All information determined to be confidential | ||||||
| 22 | under Section 4002 of the Technology Advancement and | ||||||
| 23 | Development Act. | ||||||
| 24 | (b) Library circulation and order records identifying | ||||||
| 25 | library users with specific materials under the Library | ||||||
| |||||||
| |||||||
| 1 | Records Confidentiality Act. | ||||||
| 2 | (c) Applications, related documents, and medical | ||||||
| 3 | records received by the Experimental Organ Transplantation | ||||||
| 4 | Procedures Board and any and all documents or other | ||||||
| 5 | records prepared by the Experimental Organ Transplantation | ||||||
| 6 | Procedures Board or its staff relating to applications it | ||||||
| 7 | has received. | ||||||
| 8 | (d) Information and records held by the Department of | ||||||
| 9 | Public Health and its authorized representatives relating | ||||||
| 10 | to known or suspected cases of sexually transmissible | ||||||
| 11 | disease or any information the disclosure of which is | ||||||
| 12 | restricted under the Illinois Sexually Transmissible | ||||||
| 13 | Disease Control Act. | ||||||
| 14 | (e) Information the disclosure of which is exempted | ||||||
| 15 | under Section 30 of the Radon Industry Licensing Act. | ||||||
| 16 | (f) Firm performance evaluations under Section 55 of | ||||||
| 17 | the Architectural, Engineering, and Land Surveying | ||||||
| 18 | Qualifications Based Selection Act. | ||||||
| 19 | (g) Information the disclosure of which is restricted | ||||||
| 20 | and exempted under Section 50 of the Illinois Prepaid | ||||||
| 21 | Tuition Act. | ||||||
| 22 | (h) Information the disclosure of which is exempted | ||||||
| 23 | under the State Officials and Employees Ethics Act, and | ||||||
| 24 | records of any lawfully created State or local inspector | ||||||
| 25 | general's office that would be exempt if created or | ||||||
| 26 | obtained by an Executive Inspector General's office under | ||||||
| |||||||
| |||||||
| 1 | that Act. | ||||||
| 2 | (i) Information contained in a local emergency energy | ||||||
| 3 | plan submitted to a municipality in accordance with a | ||||||
| 4 | local emergency energy plan ordinance that is adopted | ||||||
| 5 | under Section 11-21.5-5 of the Illinois Municipal Code. | ||||||
| 6 | (j) Information and data concerning the distribution | ||||||
| 7 | of surcharge moneys collected and remitted by carriers | ||||||
| 8 | under the Emergency Telephone System Act. | ||||||
| 9 | (k) Law enforcement officer identification information | ||||||
| 10 | or driver identification information compiled by a law | ||||||
| 11 | enforcement agency or the Department of Transportation | ||||||
| 12 | under Section 11-212 of the Illinois Vehicle Code. | ||||||
| 13 | (l) Records and information provided to a residential | ||||||
| 14 | health care facility resident sexual assault and death | ||||||
| 15 | review team or the Executive Council under the Abuse | ||||||
| 16 | Prevention Review Team Act. | ||||||
| 17 | (m) Information provided to the predatory lending | ||||||
| 18 | database created pursuant to Article 3 of the Residential | ||||||
| 19 | Real Property Disclosure Act, except to the extent | ||||||
| 20 | authorized under that Article. | ||||||
| 21 | (n) Defense budgets and petitions for certification of | ||||||
| 22 | compensation and expenses for court appointed trial | ||||||
| 23 | counsel as provided under Sections 10 and 15 of the | ||||||
| 24 | Capital Crimes Litigation Act (repealed). This subsection | ||||||
| 25 | (n) shall apply until the conclusion of the trial of the | ||||||
| 26 | case, even if the prosecution chooses not to pursue the | ||||||
| |||||||
| |||||||
| 1 | death penalty prior to trial or sentencing. | ||||||
| 2 | (o) Information that is prohibited from being | ||||||
| 3 | disclosed under Section 4 of the Illinois Health and | ||||||
| 4 | Hazardous Substances Registry Act. | ||||||
| 5 | (p) Security portions of system safety program plans, | ||||||
| 6 | investigation reports, surveys, schedules, lists, data, or | ||||||
| 7 | information compiled, collected, or prepared by or for the | ||||||
| 8 | Department of Transportation under Sections 2705-300 and | ||||||
| 9 | 2705-616 of the Department of Transportation Law of the | ||||||
| 10 | Civil Administrative Code of Illinois, the Regional | ||||||
| 11 | Transportation Authority under Section 2.11 of the | ||||||
| 12 | Regional Transportation Authority Act, or the St. Clair | ||||||
| 13 | County Transit District under the Bi-State Transit Safety | ||||||
| 14 | Act (repealed). | ||||||
| 15 | (q) Information prohibited from being disclosed by the | ||||||
| 16 | Personnel Record Review Act. | ||||||
| 17 | (r) Information prohibited from being disclosed by the | ||||||
| 18 | Illinois School Student Records Act. | ||||||
| 19 | (s) Information the disclosure of which is restricted | ||||||
| 20 | under Section 5-108 of the Public Utilities Act. | ||||||
| 21 | (t) (Blank). | ||||||
| 22 | (u) Records and information provided to an independent | ||||||
| 23 | team of experts under the Developmental Disability and | ||||||
| 24 | Mental Health Safety Act (also known as Brian's Law). | ||||||
| 25 | (v) Names and information of people who have applied | ||||||
| 26 | for or received Firearm Owner's Identification Cards under | ||||||
| |||||||
| |||||||
| 1 | the Firearm Owners Identification Card Act or applied for | ||||||
| 2 | or received a concealed carry license under the Firearm | ||||||
| 3 | Concealed Carry Act, unless otherwise authorized by the | ||||||
| 4 | Firearm Concealed Carry Act; and databases under the | ||||||
| 5 | Firearm Concealed Carry Act, records of the Concealed | ||||||
| 6 | Carry Licensing Review Board under the Firearm Concealed | ||||||
| 7 | Carry Act, and law enforcement agency objections under the | ||||||
| 8 | Firearm Concealed Carry Act. | ||||||
| 9 | (v-5) Records of the Firearm Owner's Identification | ||||||
| 10 | Card Review Board that are exempted from disclosure under | ||||||
| 11 | Section 10 of the Firearm Owners Identification Card Act. | ||||||
| 12 | (w) Personally identifiable information which is | ||||||
| 13 | exempted from disclosure under subsection (g) of Section | ||||||
| 14 | 19.1 of the Toll Highway Act. | ||||||
| 15 | (x) Information which is exempted from disclosure | ||||||
| 16 | under Section 5-1014.3 of the Counties Code or Section | ||||||
| 17 | 8-11-21 of the Illinois Municipal Code. | ||||||
| 18 | (y) Confidential information under the Adult | ||||||
| 19 | Protective Services Act and its predecessor enabling | ||||||
| 20 | statute, the Elder Abuse and Neglect Act, including | ||||||
| 21 | information about the identity and administrative finding | ||||||
| 22 | against any caregiver of a verified and substantiated | ||||||
| 23 | decision of abuse, neglect, or financial exploitation of | ||||||
| 24 | an eligible adult maintained in the Registry established | ||||||
| 25 | under Section 7.5 of the Adult Protective Services Act. | ||||||
| 26 | (z) Records and information provided to a fatality | ||||||
| |||||||
| |||||||
| 1 | review team or the Illinois Fatality Review Team Advisory | ||||||
| 2 | Council under Section 15 of the Adult Protective Services | ||||||
| 3 | Act. | ||||||
| 4 | (aa) Information which is exempted from disclosure | ||||||
| 5 | under Section 2.37 of the Wildlife Code. | ||||||
| 6 | (bb) Information which is or was prohibited from | ||||||
| 7 | disclosure by the Juvenile Court Act of 1987. | ||||||
| 8 | (cc) Recordings made under the Law Enforcement | ||||||
| 9 | Officer-Worn Body Camera Act, except to the extent | ||||||
| 10 | authorized under that Act. | ||||||
| 11 | (dd) Information that is prohibited from being | ||||||
| 12 | disclosed under Section 45 of the Condominium and Common | ||||||
| 13 | Interest Community Ombudsperson Act. | ||||||
| 14 | (ee) Information that is exempted from disclosure | ||||||
| 15 | under Section 30.1 of the Pharmacy Practice Act. | ||||||
| 16 | (ff) Information that is exempted from disclosure | ||||||
| 17 | under the Revised Uniform Unclaimed Property Act. | ||||||
| 18 | (gg) Information that is prohibited from being | ||||||
| 19 | disclosed under Section 7-603.5 of the Illinois Vehicle | ||||||
| 20 | Code. | ||||||
| 21 | (hh) Records that are exempt from disclosure under | ||||||
| 22 | Section 1A-16.7 of the Election Code. | ||||||
| 23 | (ii) Information which is exempted from disclosure | ||||||
| 24 | under Section 2505-800 of the Department of Revenue Law of | ||||||
| 25 | the Civil Administrative Code of Illinois. | ||||||
| 26 | (jj) Information and reports that are required to be | ||||||
| |||||||
| |||||||
| 1 | submitted to the Department of Labor by registering day | ||||||
| 2 | and temporary labor service agencies but are exempt from | ||||||
| 3 | disclosure under subsection (a-1) of Section 45 of the Day | ||||||
| 4 | and Temporary Labor Services Act. | ||||||
| 5 | (kk) Information prohibited from disclosure under the | ||||||
| 6 | Seizure and Forfeiture Reporting Act. | ||||||
| 7 | (ll) Information the disclosure of which is restricted | ||||||
| 8 | and exempted under Section 5-30.8 of the Illinois Public | ||||||
| 9 | Aid Code. | ||||||
| 10 | (mm) Records that are exempt from disclosure under | ||||||
| 11 | Section 4.2 of the Crime Victims Compensation Act. | ||||||
| 12 | (nn) Information that is exempt from disclosure under | ||||||
| 13 | Section 70 of the Higher Education Student Assistance Act. | ||||||
| 14 | (oo) Communications, notes, records, and reports | ||||||
| 15 | arising out of a peer support counseling session | ||||||
| 16 | prohibited from disclosure under the First Responders | ||||||
| 17 | Suicide Prevention Act. | ||||||
| 18 | (pp) Names and all identifying information relating to | ||||||
| 19 | an employee of an emergency services provider or law | ||||||
| 20 | enforcement agency under the First Responders Suicide | ||||||
| 21 | Prevention Act. | ||||||
| 22 | (qq) Information and records held by the Department of | ||||||
| 23 | Public Health and its authorized representatives collected | ||||||
| 24 | under the Reproductive Health Act. | ||||||
| 25 | (rr) Information that is exempt from disclosure under | ||||||
| 26 | the Cannabis Regulation and Tax Act. | ||||||
| |||||||
| |||||||
| 1 | (ss) Data reported by an employer to the Department of | ||||||
| 2 | Human Rights pursuant to Section 2-108 of the Illinois | ||||||
| 3 | Human Rights Act. | ||||||
| 4 | (tt) Recordings made under the Children's Advocacy | ||||||
| 5 | Center Act, except to the extent authorized under that | ||||||
| 6 | Act. | ||||||
| 7 | (uu) Information that is exempt from disclosure under | ||||||
| 8 | Section 50 of the Sexual Assault Evidence Submission Act. | ||||||
| 9 | (vv) Information that is exempt from disclosure under | ||||||
| 10 | subsections (f) and (j) of Section 5-36 of the Illinois | ||||||
| 11 | Public Aid Code. | ||||||
| 12 | (ww) Information that is exempt from disclosure under | ||||||
| 13 | Section 16.8 of the State Treasurer Act. | ||||||
| 14 | (xx) Information that is exempt from disclosure or | ||||||
| 15 | information that shall not be made public under the | ||||||
| 16 | Illinois Insurance Code. | ||||||
| 17 | (yy) Information prohibited from being disclosed under | ||||||
| 18 | the Illinois Educational Labor Relations Act. | ||||||
| 19 | (zz) Information prohibited from being disclosed under | ||||||
| 20 | the Illinois Public Labor Relations Act. | ||||||
| 21 | (aaa) Information prohibited from being disclosed | ||||||
| 22 | under Section 1-167 of the Illinois Pension Code. | ||||||
| 23 | (bbb) Information that is prohibited from disclosure | ||||||
| 24 | by the Illinois Police Training Act and the Illinois State | ||||||
| 25 | Police Act. | ||||||
| 26 | (ccc) Records exempt from disclosure under Section | ||||||
| |||||||
| |||||||
| 1 | 2605-304 of the Illinois State Police Law of the Civil | ||||||
| 2 | Administrative Code of Illinois. | ||||||
| 3 | (ddd) Information prohibited from being disclosed | ||||||
| 4 | under Section 35 of the Address Confidentiality for | ||||||
| 5 | Victims of Domestic Violence, Sexual Assault, Human | ||||||
| 6 | Trafficking, or Stalking Act. | ||||||
| 7 | (eee) Information prohibited from being disclosed | ||||||
| 8 | under subsection (b) of Section 75 of the Domestic | ||||||
| 9 | Violence Fatality Review Act. | ||||||
| 10 | (fff) Images from cameras under the Expressway Camera | ||||||
| 11 | Act. This subsection (fff) is inoperative on and after | ||||||
| 12 | July 1, 2025. | ||||||
| 13 | (ggg) Information prohibited from disclosure under | ||||||
| 14 | paragraph (3) of subsection (a) of Section 14 of the Nurse | ||||||
| 15 | Agency Licensing Act. | ||||||
| 16 | (hhh) Information submitted to the Illinois State | ||||||
| 17 | Police in an affidavit or application for an assault | ||||||
| 18 | weapon endorsement, assault weapon attachment endorsement, | ||||||
| 19 | .50 caliber rifle endorsement, or .50 caliber cartridge | ||||||
| 20 | endorsement under the Firearm Owners Identification Card | ||||||
| 21 | Act. | ||||||
| 22 | (iii) Data exempt from disclosure under Section 50 of | ||||||
| 23 | the School Safety Drill Act. | ||||||
| 24 | (jjj) (hhh) Information exempt from disclosure under | ||||||
| 25 | Section 30 of the Insurance Data Security Law. | ||||||
| 26 | (kkk) (iii) Confidential business information | ||||||
| |||||||
| |||||||
| 1 | prohibited from disclosure under Section 45 of the Paint | ||||||
| 2 | Stewardship Act. | ||||||
| 3 | (lll) (iii) Data exempt from disclosure under Section | ||||||
| 4 | 2-3.196 of the School Code. | ||||||
| 5 | (mmm) (iii) Information prohibited from being | ||||||
| 6 | disclosed under subsection (e) of Section 1-129 of the | ||||||
| 7 | Illinois Power Agency Act. | ||||||
| 8 | (nnn) Materials received by the Department of Commerce | ||||||
| 9 | and Economic Opportunity that are confidential under the | ||||||
| 10 | Music and Musicians Tax Credit and Jobs Act. | ||||||
| 11 | (Source: P.A. 102-36, eff. 6-25-21; 102-237, eff. 1-1-22; | ||||||
| 12 | 102-292, eff. 1-1-22; 102-520, eff. 8-20-21; 102-559, eff. | ||||||
| 13 | 8-20-21; 102-813, eff. 5-13-22; 102-946, eff. 7-1-22; | ||||||
| 14 | 102-1042, eff. 6-3-22; 102-1116, eff. 1-10-23; 103-8, eff. | ||||||
| 15 | 6-7-23; 103-34, eff. 6-9-23; 103-142, eff. 1-1-24; 103-372, | ||||||
| 16 | eff. 1-1-24; 103-472, eff. 8-1-24; 103-508, eff. 8-4-23; | ||||||
| 17 | 103-580, eff. 12-8-23; revised 1-2-24.)
| ||||||
| 18 | Section 52-5. The Illinois Income Tax Act is amended by | ||||||
| 19 | adding Section 241 as follows:
| ||||||
| 20 | (35 ILCS 5/241 new) | ||||||
| 21 | Sec. 241. Music and Musicians Tax Credits and Jobs Act. | ||||||
| 22 | Taxpayers who have been awarded a credit under the Music and | ||||||
| 23 | Musicians Tax Credits and Jobs Act are entitled to a credit | ||||||
| 24 | against the taxes imposed by subsections (a) and (b) of | ||||||
| |||||||
| |||||||
| 1 | Section 201 of this Act in an amount determined by the | ||||||
| 2 | Department of Commerce and Economic Opportunity under that | ||||||
| 3 | Act. The credit shall be claimed in the taxable year in which | ||||||
| 4 | the tax credit award certificate is issued, and the | ||||||
| 5 | certificate shall be attached to the return. If the taxpayer | ||||||
| 6 | is a partnership or Subchapter S corporation, the credit shall | ||||||
| 7 | be allowed to the partners or shareholders in accordance with | ||||||
| 8 | the provisions of Section 251. | ||||||
| 9 | The credit may not reduce the taxpayer's liability to less | ||||||
| 10 | than zero. If the amount of the credit exceeds the tax | ||||||
| 11 | liability for the year, the excess may be carried forward and | ||||||
| 12 | applied to the tax liability of the 5 taxable years following | ||||||
| 13 | the excess credit year. The credit shall be applied to the | ||||||
| 14 | earliest year for which there is a tax liability. If there are | ||||||
| 15 | credits from more than one tax year that are available to | ||||||
| 16 | offset a liability, the earlier credit shall be applied first.
| ||||||
| 17 | ARTICLE 55. | ||||||
| 18 | Section 55-5. The Illinois Income Tax Act is amended by | ||||||
| 19 | changing Section 216 as follows:
| ||||||
| 20 | (35 ILCS 5/216) | ||||||
| 21 | Sec. 216. Credit for wages paid to returning citizens | ||||||
| 22 | ex-felons. | ||||||
| 23 | (a) For each taxable year beginning on or after January 1, | ||||||
| |||||||
| |||||||
| 1 | 2007, each taxpayer is entitled to a credit against the tax | ||||||
| 2 | imposed by subsections (a) and (b) of Section 201 of this Act | ||||||
| 3 | in an amount equal to 5% of qualified wages paid by the | ||||||
| 4 | taxpayer during the taxable year to one or more Illinois | ||||||
| 5 | residents who are qualified returning citizens ex-offenders. | ||||||
| 6 | For each taxable year beginning on or after January 1, 2025, | ||||||
| 7 | each taxpayer is entitled to a credit against the tax imposed | ||||||
| 8 | by subsections (a) and (b) of Section 201 of this Act in an | ||||||
| 9 | amount equal to 15% of qualified wages paid by the taxpayer | ||||||
| 10 | during the taxable year to one or more Illinois residents who | ||||||
| 11 | are qualified returning citizens. The total credit allowed to | ||||||
| 12 | a taxpayer with respect to each qualified returning citizen | ||||||
| 13 | ex-offender may not exceed $1,500 for all taxable years ending | ||||||
| 14 | on or before December 31, 2024. For taxable years ending on or | ||||||
| 15 | after December 31, 2025, the total credit allowed to a | ||||||
| 16 | taxpayer with respect to each qualified returning citizen may | ||||||
| 17 | not exceed $7,500. For taxable years ending on or after | ||||||
| 18 | December 31, 2025, the total amount in credit that may be | ||||||
| 19 | awarded under this Section may not exceed $1,000,000 per | ||||||
| 20 | taxable year. For taxable years ending before December 31, | ||||||
| 21 | 2023, for partners, shareholders of Subchapter S corporations, | ||||||
| 22 | and owners of limited liability companies, if the liability | ||||||
| 23 | company is treated as a partnership for purposes of federal | ||||||
| 24 | and State income taxation, there shall be allowed a credit | ||||||
| 25 | under this Section to be determined in accordance with the | ||||||
| 26 | determination of income and distributive share of income under | ||||||
| |||||||
| |||||||
| 1 | Sections 702 and 704 and Subchapter S of the Internal Revenue | ||||||
| 2 | Code. For taxable years ending on or after December 31, 2023, | ||||||
| 3 | partners and shareholders of subchapter S corporations are | ||||||
| 4 | entitled to a credit under this Section as provided in Section | ||||||
| 5 | 251. | ||||||
| 6 | (b) For purposes of this Section, "qualified wages": | ||||||
| 7 | (1) includes only wages that are subject to federal | ||||||
| 8 | unemployment tax under Section 3306 of the Internal | ||||||
| 9 | Revenue Code, without regard to any dollar limitation | ||||||
| 10 | contained in that Section; | ||||||
| 11 | (2) does not include any amounts paid or incurred by | ||||||
| 12 | an employer for any period to any qualified returning | ||||||
| 13 | citizen ex-offender for whom the employer receives | ||||||
| 14 | federally funded payments for on-the-job training of that | ||||||
| 15 | qualified returning citizen ex-offender for that period; | ||||||
| 16 | and | ||||||
| 17 | (3) includes only wages attributable to service | ||||||
| 18 | rendered during the one-year period beginning with the day | ||||||
| 19 | the qualified returning citizen ex-offender begins work | ||||||
| 20 | for the employer. | ||||||
| 21 | If the taxpayer has received any payment from a program | ||||||
| 22 | established under Section 482(e)(1) of the federal Social | ||||||
| 23 | Security Act with respect to a qualified returning citizen | ||||||
| 24 | ex-offender, then, for purposes of calculating the credit | ||||||
| 25 | under this Section, the amount of the qualified wages paid to | ||||||
| 26 | that qualified ex-offender must be reduced by the amount of | ||||||
| |||||||
| |||||||
| 1 | the payment. | ||||||
| 2 | (c) For purposes of this Section, "qualified returning | ||||||
| 3 | citizen ex-offender" means any person who: | ||||||
| 4 | (1) has been convicted of a crime in this State or of | ||||||
| 5 | an offense in any other jurisdiction, not including any | ||||||
| 6 | offense or attempted offense that would subject a person | ||||||
| 7 | to registration under the Sex Offender Registration Act; | ||||||
| 8 | (2) was sentenced to a period of incarceration in an | ||||||
| 9 | Illinois adult correctional center; and | ||||||
| 10 | (3) was hired by the taxpayer within 3 years after | ||||||
| 11 | being released from an Illinois adult correctional center | ||||||
| 12 | if the credit is claimed for a taxable year beginning on or | ||||||
| 13 | before January 1, 2024, or was hired by the taxpayer | ||||||
| 14 | within 5 years after being released from an Illinois adult | ||||||
| 15 | correctional center if the credit is claimed for a taxable | ||||||
| 16 | year beginning on or after January 1, 2025. | ||||||
| 17 | (d) In no event shall a credit under this Section reduce | ||||||
| 18 | the taxpayer's liability to less than zero. If the amount of | ||||||
| 19 | the credit exceeds the tax liability for the year, the excess | ||||||
| 20 | may be carried forward and applied to the tax liability of the | ||||||
| 21 | 5 taxable years following the excess credit year. The tax | ||||||
| 22 | credit shall be applied to the earliest year for which there is | ||||||
| 23 | a tax liability. If there are credits for more than one year | ||||||
| 24 | that are available to offset a liability, the earlier credit | ||||||
| 25 | shall be applied first. | ||||||
| 26 | (e) This Section is exempt from the provisions of Section | ||||||
| |||||||
| |||||||
| 1 | 250. | ||||||
| 2 | (Source: P.A. 103-396, eff. 1-1-24.)
| ||||||
| 3 | ARTICLE 60. | ||||||
| 4 | Section 60-5. The Illinois Income Tax Act is amended by | ||||||
| 5 | changing Section 234 as follows:
| ||||||
| 6 | (35 ILCS 5/234) | ||||||
| 7 | Sec. 234. Volunteer emergency workers. | ||||||
| 8 | (a) For taxable years beginning on or after January 1, | ||||||
| 9 | 2023 and beginning prior to January 1, 2028, each individual | ||||||
| 10 | who (i) serves as a volunteer emergency worker for at least 9 | ||||||
| 11 | months during the taxable year and (ii) does not receive | ||||||
| 12 | compensation for his or her services as a volunteer emergency | ||||||
| 13 | worker of more than $5,000 for the taxable year may apply to | ||||||
| 14 | the Department for a credit against the taxes imposed by | ||||||
| 15 | subsections (a) and (b) of Section 201. The amount of the | ||||||
| 16 | credit shall be $500 per eligible individual. If a taxpayer | ||||||
| 17 | described in this subsection (a) is a volunteer member of a | ||||||
| 18 | county or municipal emergency services and disaster agency | ||||||
| 19 | under the Illinois Emergency Management Agency Act, then the | ||||||
| 20 | taxpayer must serve as a volunteer emergency worker with the | ||||||
| 21 | county or municipal emergency services and disaster agency for | ||||||
| 22 | at least 100 hours during the taxable year. The aggregate | ||||||
| 23 | amount of all tax credits awarded by the Department under this | ||||||
| |||||||
| |||||||
| 1 | Section in any calendar year may not exceed $5,000,000. | ||||||
| 2 | Credits shall be awarded on a first-come first-served basis. | ||||||
| 3 | (b) A credit under this Section may not reduce a | ||||||
| 4 | taxpayer's liability to less than zero. | ||||||
| 5 | (c) By January 24 of each year, the Office of the State | ||||||
| 6 | Fire Marshal shall provide the Department of Revenue an | ||||||
| 7 | electronic file with the names of volunteer emergency workers, | ||||||
| 8 | other than volunteer emergency workers who are volunteer | ||||||
| 9 | members of a county or municipal emergency services and | ||||||
| 10 | disaster agency under the Illinois Emergency Management Agency | ||||||
| 11 | Act, who (i) volunteered for at least 9 months during the | ||||||
| 12 | immediately preceding calendar year, (ii) did not receive | ||||||
| 13 | compensation for their services as a volunteer emergency | ||||||
| 14 | worker of more than $5,000 during the immediately preceding | ||||||
| 15 | calendar year, and (iii) are registered with the Office of the | ||||||
| 16 | State Fire Marshal as of January 12 of the current year as | ||||||
| 17 | meeting the requirements of items (i) and (ii) for the | ||||||
| 18 | immediately preceding calendar year. The chief of the fire | ||||||
| 19 | department, fire protection district, or fire protection | ||||||
| 20 | association shall be responsible for notifying the State Fire | ||||||
| 21 | Marshal of the volunteer emergency workers who met the | ||||||
| 22 | requirements of items (i) and (ii) during the immediately | ||||||
| 23 | preceding calendar year by January 12 of the current year. | ||||||
| 24 | Notification shall be required in the format required by the | ||||||
| 25 | State Fire Marshal. The chief of the fire department, fire | ||||||
| 26 | protection district, or fire protection association shall be | ||||||
| |||||||
| |||||||
| 1 | responsible for the verification and accuracy of their | ||||||
| 2 | submission to the State Fire Marshal under this subsection. | ||||||
| 3 | By January 24, 2025, and by January 24 of each year | ||||||
| 4 | thereafter, the Illinois Emergency Management Agency and | ||||||
| 5 | Office of Homeland Security shall provide the Department of | ||||||
| 6 | Revenue an electronic file with the names of volunteer | ||||||
| 7 | emergency workers who (A) volunteered with a county or | ||||||
| 8 | municipal emergency services and disaster agency pursuant to | ||||||
| 9 | the Illinois Emergency Management Agency Act for at least 9 | ||||||
| 10 | months during the immediately preceding calendar year, (B) did | ||||||
| 11 | not receive compensation for their services as a volunteer | ||||||
| 12 | emergency worker of more than $5,000 during the immediately | ||||||
| 13 | preceding calendar year, (C) volunteered with a county or | ||||||
| 14 | municipal emergency services and disaster agency pursuant to | ||||||
| 15 | the Illinois Emergency Management Agency Act for at least 100 | ||||||
| 16 | hours during the immediately preceding calendar year, and (D) | ||||||
| 17 | are registered with the Illinois Emergency Management Agency | ||||||
| 18 | and Office of Homeland Security as of January 12 of the current | ||||||
| 19 | year as meeting the requirements of items (A), (B), and (C) for | ||||||
| 20 | the immediately preceding calendar year. The coordinator of | ||||||
| 21 | the emergency services and disaster agency shall be | ||||||
| 22 | responsible for notifying the Illinois Emergency Management | ||||||
| 23 | Agency and Office of Homeland Security of the volunteer | ||||||
| 24 | emergency workers who met the requirements of items (A), (B), | ||||||
| 25 | and (C) during the immediately preceding calendar year by | ||||||
| 26 | January 12 of the current year. Notification shall be in the | ||||||
| |||||||
| |||||||
| 1 | format required by the Illinois Emergency Management Agency | ||||||
| 2 | and Office of Homeland Security. The coordinator of the | ||||||
| 3 | emergency services and disaster agency shall be responsible | ||||||
| 4 | for the verification and accuracy of their submission to the | ||||||
| 5 | Illinois Emergency Management Agency and Office of Homeland | ||||||
| 6 | Security under this subsection. | ||||||
| 7 | (d) As used in this Section, "volunteer emergency worker" | ||||||
| 8 | means a person who serves as a member, other than on a | ||||||
| 9 | full-time career basis, of a fire department, fire protection | ||||||
| 10 | district, or fire protection association that has a Fire | ||||||
| 11 | Department Identification Number issued by the Office of the | ||||||
| 12 | State Fire Marshal and who does not serve as a member on a | ||||||
| 13 | full-time career basis for another fire department, fire | ||||||
| 14 | protection district, fire protection association, or | ||||||
| 15 | governmental entity. For taxable years beginning on or after | ||||||
| 16 | January 1, 2024, "volunteer emergency worker" also means a | ||||||
| 17 | person who is a volunteer member of a county or municipal | ||||||
| 18 | emergency services and disaster agency pursuant to the | ||||||
| 19 | Illinois Emergency Management Agency Act. | ||||||
| 20 | (e) The Department shall adopt rules to implement and | ||||||
| 21 | administer this Section, including rules concerning | ||||||
| 22 | applications for the tax credit. | ||||||
| 23 | (Source: P.A. 103-9, eff. 6-7-23.)
| ||||||
| 24 | ARTICLE 65. | ||||||
| |||||||
| |||||||
| 1 | Section 65-5. The Hotel Operators' Occupation Tax Act is | ||||||
| 2 | amended by changing Sections 2, 3, 4, 5, and 6 and by adding | ||||||
| 3 | Sections 3-2 and 3-3 as follows:
| ||||||
| 4 | (35 ILCS 145/2) (from Ch. 120, par. 481b.32) | ||||||
| 5 | Sec. 2. Definitions. As used in this Act, unless the | ||||||
| 6 | context otherwise requires: | ||||||
| 7 | (1) "Hotel" means any building or buildings in which the | ||||||
| 8 | public may, for a consideration, obtain living quarters, | ||||||
| 9 | sleeping or housekeeping accommodations. The term includes, | ||||||
| 10 | but is not limited to, inns, motels, tourist homes or courts, | ||||||
| 11 | lodging houses, rooming houses and apartment houses, retreat | ||||||
| 12 | centers, conference centers, and hunting lodges. For the | ||||||
| 13 | purposes of re-renters of hotel rooms only, "hotel" does not | ||||||
| 14 | include a short-term rental. | ||||||
| 15 | (2) "Operator" means any person engaged in the business of | ||||||
| 16 | renting, leasing, or letting rooms in operating a hotel. | ||||||
| 17 | (3) "Occupancy" means the use or possession, or the right | ||||||
| 18 | to the use or possession, of any room or rooms in a hotel for | ||||||
| 19 | any purpose, or the right to the use or possession of the | ||||||
| 20 | furnishings or to the services and accommodations accompanying | ||||||
| 21 | the use and possession of the room or rooms. | ||||||
| 22 | (4) "Room" or "rooms" means any living quarters, sleeping | ||||||
| 23 | or housekeeping accommodations. | ||||||
| 24 | (5) "Permanent resident" means any person who occupied or | ||||||
| 25 | has the right to occupy any room or rooms, regardless of | ||||||
| |||||||
| |||||||
| 1 | whether or not it is the same room or rooms, in a hotel for at | ||||||
| 2 | least 30 consecutive days. | ||||||
| 3 | (6) "Rent" or "rental" means the consideration received | ||||||
| 4 | for occupancy, valued in money, whether received in money or | ||||||
| 5 | otherwise, including all receipts, cash, credits and property | ||||||
| 6 | or services of any kind or nature. "Rent" or "rental" includes | ||||||
| 7 | any fee, charge, or commission received from a guest by a | ||||||
| 8 | re-renter of hotel rooms specifically in connection with the | ||||||
| 9 | re-rental of hotel rooms, but does not include any fee, | ||||||
| 10 | charge, or commission received from a short-term rental by a | ||||||
| 11 | hosting platform. | ||||||
| 12 | (7) "Department" means the Department of Revenue. | ||||||
| 13 | (8) "Person" means any natural individual, firm, | ||||||
| 14 | partnership, association, joint stock company, joint | ||||||
| 15 | adventure, public or private corporation, limited liability | ||||||
| 16 | company, or a receiver, executor, trustee, guardian or other | ||||||
| 17 | representative appointed by order of any court. | ||||||
| 18 | (9) "Re-renter of hotel rooms" means a person who is not | ||||||
| 19 | employed by the hotel operator but who, either directly or | ||||||
| 20 | indirectly, through agreements or arrangements with third | ||||||
| 21 | parties, collects or processes the payment of rent for a hotel | ||||||
| 22 | room located in this State and (i) obtains the right or | ||||||
| 23 | authority to grant control of, access to, or occupancy of a | ||||||
| 24 | hotel room in this State to a guest of the hotel or (ii) | ||||||
| 25 | facilitates the booking of a hotel room located in this State. | ||||||
| 26 | A person who obtains those rights or authorities is not | ||||||
| |||||||
| |||||||
| 1 | considered a re-renter of a hotel room if the person operates | ||||||
| 2 | under a shared hotel brand with the operator. | ||||||
| 3 | (10) "Hosting platform" or "platform" means a person who | ||||||
| 4 | provides an online application, software, website, or system | ||||||
| 5 | through which a short-term rental located in this State is | ||||||
| 6 | advertised or held out to the public as available to rent for | ||||||
| 7 | occupancy. For purposes of this definition, "short-term | ||||||
| 8 | rental" means an owner-occupied, tenant-occupied, or | ||||||
| 9 | non-owner-occupied dwelling, including, but not limited to, an | ||||||
| 10 | apartment, house, cottage, or condominium, located in this | ||||||
| 11 | State, where: (i) at least one room in the dwelling is rented | ||||||
| 12 | to an occupant for a period of less than 30 consecutive days; | ||||||
| 13 | and (ii) all accommodations are reserved in advance; provided, | ||||||
| 14 | however, that a dwelling shall be considered a single room if | ||||||
| 15 | rented as such. | ||||||
| 16 | (11) "Shared hotel brand" means an identifying trademark | ||||||
| 17 | that a hotel operator is expressly licensed to operate under | ||||||
| 18 | in accordance with the terms of a hotel franchise or | ||||||
| 19 | management agreement | ||||||
| 20 | (Source: P.A. 100-213, eff. 8-18-17.)
| ||||||
| 21 | (35 ILCS 145/3) (from Ch. 120, par. 481b.33) | ||||||
| 22 | Sec. 3. Rate; exemptions. | ||||||
| 23 | (a) A tax is imposed upon hotel operators persons engaged | ||||||
| 24 | in the business of renting, leasing or letting rooms in a hotel | ||||||
| 25 | at the rate of 5% of 94% of the gross rental receipts from | ||||||
| |||||||
| |||||||
| 1 | engaging in business as a hotel operator such renting, leasing | ||||||
| 2 | or letting, excluding, however, from gross rental receipts, | ||||||
| 3 | the proceeds of such renting, leasing or letting hotel rooms | ||||||
| 4 | to permanent residents of a that hotel and proceeds from the | ||||||
| 5 | tax imposed under subsection (c) of Section 13 of the | ||||||
| 6 | Metropolitan Pier and Exposition Authority Act. | ||||||
| 7 | (b) There shall be imposed an additional tax upon hotel | ||||||
| 8 | operators persons engaged in the business of renting, leasing | ||||||
| 9 | or letting rooms in a hotel at the rate of 1% of 94% of the | ||||||
| 10 | gross rental receipts received by the hotel operator from | ||||||
| 11 | engaging in business as a hotel operator from such renting, | ||||||
| 12 | leasing or letting, excluding, however, from gross rental | ||||||
| 13 | receipts, the proceeds of such renting, leasing or letting to | ||||||
| 14 | permanent residents of that hotel and proceeds from the tax | ||||||
| 15 | imposed under subsection (c) of Section 13 of the Metropolitan | ||||||
| 16 | Pier and Exposition Authority Act. | ||||||
| 17 | (b-5) Beginning on July 1, 2024, if the renting, leasing, | ||||||
| 18 | or letting of a hotel room is done through a re-renter of hotel | ||||||
| 19 | rooms, then, subject to the provisions of Sections 3-2 and | ||||||
| 20 | 3-3, the re-renter is the hotel operator for the purposes of | ||||||
| 21 | the taxes under subsections (a) and (b). If the re-renter is | ||||||
| 22 | headquartered outside of this State and has no presence in | ||||||
| 23 | this State other than its business as a re-renter, conducted | ||||||
| 24 | remotely, then, subject to the provisions of Sections 3-2 and | ||||||
| 25 | 3-3, such re-renter is the hotel operator for the purposes of | ||||||
| 26 | the taxes under subsections (a) and (b) if it meets one of the | ||||||
| |||||||
| |||||||
| 1 | following thresholds: | ||||||
| 2 | (1) the cumulative gross receipts from rentals in | ||||||
| 3 | Illinois by the re-renter of hotel rooms are $100,000 or | ||||||
| 4 | more; or | ||||||
| 5 | (2) the re-renter of hotel rooms cumulatively enters | ||||||
| 6 | into 200 or more separate transactions for rentals in | ||||||
| 7 | Illinois. | ||||||
| 8 | A re-renter of hotel rooms who is headquartered outside of | ||||||
| 9 | this State and has no presence in this State other than its | ||||||
| 10 | business as a re-renter, conducted remotely, shall determine | ||||||
| 11 | on a quarterly basis, ending on the last day of March, June, | ||||||
| 12 | September, and December, whether he or she meets the threshold | ||||||
| 13 | of either paragraph (1) or (2) of this subsection (b-5) for the | ||||||
| 14 | preceding 12-month period. If such re-renter of hotel rooms | ||||||
| 15 | meets the threshold of either paragraph (1) or (2) for a | ||||||
| 16 | 12-month period, he or she is subject to tax under this Act and | ||||||
| 17 | is required to remit the tax imposed under this Act and file | ||||||
| 18 | returns for the 12-month period beginning on the first day of | ||||||
| 19 | the next month after he or she determines that he or she meets | ||||||
| 20 | the threshold of paragraph (1) or (2). At the end of that | ||||||
| 21 | 12-month period, such re-renter of hotel rooms shall determine | ||||||
| 22 | whether he or she continued to meet the threshold of either | ||||||
| 23 | paragraph (1) or (2) during the preceding 12-month period. If | ||||||
| 24 | he or she met the threshold in either paragraph (1) or (2) for | ||||||
| 25 | the preceding 12-month period, he or she is a hotel operator in | ||||||
| 26 | this State and is required to remit the tax imposed under this | ||||||
| |||||||
| |||||||
| 1 | Act and file returns for the subsequent 12-month period. If, | ||||||
| 2 | at the end of a 12-month period during which such re-renter is | ||||||
| 3 | required to remit the tax imposed under this Act, the | ||||||
| 4 | re-renter determines that he or she did not meet the threshold | ||||||
| 5 | in either paragraph (1) or (2) during the preceding 12-month | ||||||
| 6 | period, he or she shall subsequently determine on a quarterly | ||||||
| 7 | basis, ending on the last day of March, June, September, and | ||||||
| 8 | December, whether he or she meets the threshold of either | ||||||
| 9 | paragraph (1) or (2) for the preceding 12-month period. | ||||||
| 10 | (c) No funds received pursuant to this Act shall be used to | ||||||
| 11 | advertise for or otherwise promote new competition in the | ||||||
| 12 | hotel business. | ||||||
| 13 | (d) However, such tax is not imposed upon the privilege of | ||||||
| 14 | engaging in any business in Interstate Commerce or otherwise, | ||||||
| 15 | which business may not, under the Constitution and Statutes of | ||||||
| 16 | the United States, be made the subject of taxation by this | ||||||
| 17 | State. In addition, the tax is not imposed upon gross rental | ||||||
| 18 | receipts for which the hotel operator is prohibited from | ||||||
| 19 | obtaining reimbursement for the tax from the customer by | ||||||
| 20 | reason of a federal treaty. | ||||||
| 21 | (d-5) On and after July 1, 2017, the tax imposed by this | ||||||
| 22 | Act shall not apply to gross rental receipts received by an | ||||||
| 23 | entity that is organized and operated exclusively for | ||||||
| 24 | religious purposes and possesses an active Exemption | ||||||
| 25 | Identification Number issued by the Department pursuant to the | ||||||
| 26 | Retailers' Occupation Tax Act when acting as a hotel operator | ||||||
| |||||||
| |||||||
| 1 | renting, leasing, or letting rooms: | ||||||
| 2 | (1) in furtherance of the purposes for which it is | ||||||
| 3 | organized; or | ||||||
| 4 | (2) to entities that (i) are organized and operated | ||||||
| 5 | exclusively for religious purposes, (ii) possess an active | ||||||
| 6 | Exemption Identification Number issued by the Department | ||||||
| 7 | pursuant to the Retailers' Occupation Tax Act, and (iii) | ||||||
| 8 | rent the rooms in furtherance of the purposes for which | ||||||
| 9 | they are organized. | ||||||
| 10 | No gross rental receipts are exempt under paragraph (2) of | ||||||
| 11 | this subsection (d-5) unless the hotel operator obtains the | ||||||
| 12 | active Exemption Identification Number from the exclusively | ||||||
| 13 | religious entity to whom it is renting and maintains that | ||||||
| 14 | number in its books and records. Gross rental receipts from | ||||||
| 15 | all rentals other than those described in items (1) or (2) of | ||||||
| 16 | this subsection (d-5) are subject to the tax imposed by this | ||||||
| 17 | Act unless otherwise exempt under this Act. | ||||||
| 18 | This subsection (d-5) is exempt from the sunset provisions | ||||||
| 19 | of Section 3-5 of this Act. | ||||||
| 20 | (d-10) On and after July 1, 2023, the tax imposed by this | ||||||
| 21 | Act shall not apply to gross rental receipts received from the | ||||||
| 22 | renting, leasing, or letting of rooms to an entity that is | ||||||
| 23 | organized and operated exclusively by an organization | ||||||
| 24 | chartered by the United States Congress for the purpose of | ||||||
| 25 | providing disaster relief and that possesses an active | ||||||
| 26 | Exemption Identification Number issued by the Department | ||||||
| |||||||
| |||||||
| 1 | pursuant to the Retailers' Occupation Tax Act if the renting, | ||||||
| 2 | leasing, or letting of the rooms is in furtherance of the | ||||||
| 3 | purposes for which the exempt organization is organized. This | ||||||
| 4 | subsection (d-10) is exempt from the sunset provisions of | ||||||
| 5 | Section 3-5 of this Act. | ||||||
| 6 | (e) Persons subject to the tax imposed by this Act may | ||||||
| 7 | reimburse themselves for their tax liability under this Act by | ||||||
| 8 | separately stating such tax as an additional charge, which | ||||||
| 9 | charge may be stated in combination, in a single amount, with | ||||||
| 10 | any tax imposed pursuant to Sections 8-3-13 and 8-3-14 of the | ||||||
| 11 | Illinois Municipal Code, and Section 25.05-10 of "An Act to | ||||||
| 12 | revise the law in relation to counties". | ||||||
| 13 | (f) If any hotel operator collects an amount (however | ||||||
| 14 | designated) which purports to reimburse such operator for | ||||||
| 15 | hotel operators' occupation tax liability measured by receipts | ||||||
| 16 | which are not subject to hotel operators' occupation tax, or | ||||||
| 17 | if any hotel operator, in collecting an amount (however | ||||||
| 18 | designated) which purports to reimburse such operator for | ||||||
| 19 | hotel operators' occupation tax liability measured by receipts | ||||||
| 20 | which are subject to tax under this Act, collects more from the | ||||||
| 21 | guest or re-renter customer than the operators' hotel | ||||||
| 22 | operators' occupation tax liability in the transaction is, the | ||||||
| 23 | guest or re-renter, as applicable, customer shall have a legal | ||||||
| 24 | right to claim a refund of such amount from such operator. | ||||||
| 25 | However, if such amount is not refunded to the guest or | ||||||
| 26 | re-renter, as applicable, customer for any reason, the hotel | ||||||
| |||||||
| |||||||
| 1 | operator is liable to pay such amount to the Department. | ||||||
| 2 | (Source: P.A. 103-9, eff. 6-7-23.)
| ||||||
| 3 | (35 ILCS 145/3-2 new) | ||||||
| 4 | Sec. 3-2. No resale exemption; tax incurred by re-renters | ||||||
| 5 | of hotel rooms. A hotel operator who rents, leases, or lets | ||||||
| 6 | rooms subject to tax under this Act to a re-renter of hotel | ||||||
| 7 | rooms incurs the tax under this Act on the gross rental | ||||||
| 8 | receipts it receives from that re-renter of hotel rooms and | ||||||
| 9 | cannot claim any resale exemption. In such situations, the | ||||||
| 10 | re-renter of hotel rooms incurs tax under this Act on its gross | ||||||
| 11 | rental receipts as provided in Section 3 of this Act.
| ||||||
| 12 | (35 ILCS 145/3-3 new) | ||||||
| 13 | Sec. 3-3. Re-renter of hotel rooms; credit for tax | ||||||
| 14 | reimbursement. A re-renter of hotel rooms may take a credit | ||||||
| 15 | against the tax it incurs on the rental of a hotel room under | ||||||
| 16 | this Act for the amount it paid under subsection (e) of Section | ||||||
| 17 | 3 of this Act to a hotel operator as reimbursement for the tax | ||||||
| 18 | incurred under this Act for the rental of that room for the | ||||||
| 19 | purposes of re-rental.
| ||||||
| 20 | (35 ILCS 145/4) (from Ch. 120, par. 481b.34) | ||||||
| 21 | Sec. 4. Books and records. Every operator shall keep | ||||||
| 22 | separate books or records of his business as an operator so as | ||||||
| 23 | to show the rents and occupancies taxable under this Act | ||||||
| |||||||
| |||||||
| 1 | separately from his transactions not taxable under this Act. | ||||||
| 2 | If any operator fails to keep such separate books or records, | ||||||
| 3 | he shall be liable to tax at the rate designated in Section 3 | ||||||
| 4 | hereof upon the entire proceeds from his business hotel. The | ||||||
| 5 | Department may adopt rules that establish requirements, | ||||||
| 6 | including record forms and formats, for records required to be | ||||||
| 7 | kept and maintained by taxpayers. For purposes of this | ||||||
| 8 | Section, "records" means all data maintained by the taxpayer, | ||||||
| 9 | including data on paper, microfilm, microfiche or any type of | ||||||
| 10 | machine-sensible data compilation. | ||||||
| 11 | (Source: P.A. 88-480.)
| ||||||
| 12 | (35 ILCS 145/5) (from Ch. 120, par. 481b.35) | ||||||
| 13 | Sec. 5. Certificate of registration; retailers' occupation | ||||||
| 14 | tax registration provisions apply. It shall be unlawful for | ||||||
| 15 | any person to engage in the business as a hotel operator of | ||||||
| 16 | renting, leasing or letting rooms in a hotel in this State | ||||||
| 17 | without a certificate of registration from the Department. | ||||||
| 18 | All of the provisions of Sections 2a and 2b of the | ||||||
| 19 | Retailers' Occupation Tax Act, in effect on the effective date | ||||||
| 20 | of this Act, as subsequently amended, shall apply to persons | ||||||
| 21 | in the business as hotel operators of renting, leasing or | ||||||
| 22 | letting rooms in a hotel in this State, to the same extent as | ||||||
| 23 | if such provisions were included herein. | ||||||
| 24 | (Source: Laws 1961, p. 1728.)
| ||||||
| |||||||
| |||||||
| 1 | (35 ILCS 145/6) (from Ch. 120, par. 481b.36) | ||||||
| 2 | Sec. 6. Returns; allocation of proceeds Filing of returns | ||||||
| 3 | and distribution of revenue. Except as provided hereinafter in | ||||||
| 4 | this Section, on or before the last day of each calendar month, | ||||||
| 5 | every person engaged as a hotel operator in the business of | ||||||
| 6 | renting, leasing or letting rooms in a hotel in this State | ||||||
| 7 | during the preceding calendar month shall file a return with | ||||||
| 8 | the Department, stating: | ||||||
| 9 | 1. The name of the operator; | ||||||
| 10 | 2. His residence address and the address of his | ||||||
| 11 | principal place of business and the address of the | ||||||
| 12 | principal place of business (if that is a different | ||||||
| 13 | address) from which he engages in the business as a hotel | ||||||
| 14 | operator of renting, leasing or letting rooms in a hotel | ||||||
| 15 | in this State (including, if required by the Department, | ||||||
| 16 | the address of each hotel from which rental receipts were | ||||||
| 17 | received); | ||||||
| 18 | 3. Total amount of rental receipts received by him | ||||||
| 19 | during the preceding calendar month from engaging in | ||||||
| 20 | business as a hotel operator renting, leasing or letting | ||||||
| 21 | rooms during such preceding calendar month; | ||||||
| 22 | 4. Total amount of rental receipts received by him | ||||||
| 23 | during the preceding calendar month from renting, leasing | ||||||
| 24 | or letting rooms to permanent residents during such | ||||||
| 25 | preceding calendar month; | ||||||
| 26 | 5. Total amount of other exclusions from gross rental | ||||||
| |||||||
| |||||||
| 1 | receipts allowed by this Act; | ||||||
| 2 | 6. Gross rental receipts which were received by him | ||||||
| 3 | during the preceding calendar month and upon the basis of | ||||||
| 4 | which the tax is imposed; | ||||||
| 5 | 7. The amount of tax due; | ||||||
| 6 | 8. Credit for any reimbursement of tax paid by a | ||||||
| 7 | re-renter of hotel rooms to hotel operators for rentals | ||||||
| 8 | purchased for re-rental, as provided in Section 3-3 of | ||||||
| 9 | this Act; | ||||||
| 10 | 9. 8. Such other reasonable information as the | ||||||
| 11 | Department may require. | ||||||
| 12 | If the operator's average monthly tax liability to the | ||||||
| 13 | Department does not exceed $200, the Department may authorize | ||||||
| 14 | his returns to be filed on a quarter annual basis, with the | ||||||
| 15 | return for January, February and March of a given year being | ||||||
| 16 | due by April 30 of such year; with the return for April, May | ||||||
| 17 | and June of a given year being due by July 31 of such year; | ||||||
| 18 | with the return for July, August and September of a given year | ||||||
| 19 | being due by October 31 of such year, and with the return for | ||||||
| 20 | October, November and December of a given year being due by | ||||||
| 21 | January 31 of the following year. | ||||||
| 22 | If the operator's average monthly tax liability to the | ||||||
| 23 | Department does not exceed $50, the Department may authorize | ||||||
| 24 | his returns to be filed on an annual basis, with the return for | ||||||
| 25 | a given year being due by January 31 of the following year. | ||||||
| 26 | Such quarter annual and annual returns, as to form and | ||||||
| |||||||
| |||||||
| 1 | substance, shall be subject to the same requirements as | ||||||
| 2 | monthly returns. | ||||||
| 3 | Notwithstanding any other provision in this Act concerning | ||||||
| 4 | the time within which an operator may file his return, in the | ||||||
| 5 | case of any operator who ceases to engage in a kind of business | ||||||
| 6 | which makes him responsible for filing returns under this Act, | ||||||
| 7 | such operator shall file a final return under this Act with the | ||||||
| 8 | Department not more than 1 month after discontinuing such | ||||||
| 9 | business. | ||||||
| 10 | Where the same person has more than 1 business registered | ||||||
| 11 | with the Department under separate registrations under this | ||||||
| 12 | Act, such person shall not file each return that is due as a | ||||||
| 13 | single return covering all such registered businesses, but | ||||||
| 14 | shall file separate returns for each such registered business. | ||||||
| 15 | In his return, the operator shall determine the value of | ||||||
| 16 | any consideration other than money received by him in | ||||||
| 17 | connection with engaging in business as a hotel operator the | ||||||
| 18 | renting, leasing or letting of rooms in the course of his | ||||||
| 19 | business and he shall include such value in his return. Such | ||||||
| 20 | determination shall be subject to review and revision by the | ||||||
| 21 | Department in the manner hereinafter provided for the | ||||||
| 22 | correction of returns. | ||||||
| 23 | Where the operator is a corporation, the return filed on | ||||||
| 24 | behalf of such corporation shall be signed by the president, | ||||||
| 25 | vice-president, secretary or treasurer or by the properly | ||||||
| 26 | accredited agent of such corporation. | ||||||
| |||||||
| |||||||
| 1 | The person filing the return herein provided for shall, at | ||||||
| 2 | the time of filing such return, pay to the Department the | ||||||
| 3 | amount of tax herein imposed. The operator filing the return | ||||||
| 4 | under this Section shall, at the time of filing such return, | ||||||
| 5 | pay to the Department the amount of tax imposed by this Act | ||||||
| 6 | less a discount of 2.1% or $25 per calendar year, whichever is | ||||||
| 7 | greater, which is allowed to reimburse the operator for the | ||||||
| 8 | expenses incurred in keeping records, preparing and filing | ||||||
| 9 | returns, remitting the tax and supplying data to the | ||||||
| 10 | Department on request. | ||||||
| 11 | If any payment provided for in this Section exceeds the | ||||||
| 12 | operator's liabilities under this Act, as shown on an original | ||||||
| 13 | return, the Department may authorize the operator to credit | ||||||
| 14 | such excess payment against liability subsequently to be | ||||||
| 15 | remitted to the Department under this Act, in accordance with | ||||||
| 16 | reasonable rules adopted by the Department. If the Department | ||||||
| 17 | subsequently determines that all or any part of the credit | ||||||
| 18 | taken was not actually due to the operator, the operator's | ||||||
| 19 | discount shall be reduced by an amount equal to the difference | ||||||
| 20 | between the discount as applied to the credit taken and that | ||||||
| 21 | actually due, and that operator shall be liable for penalties | ||||||
| 22 | and interest on such difference. | ||||||
| 23 | There shall be deposited into the Build Illinois Fund in | ||||||
| 24 | the State Treasury for each State fiscal year 40% of the amount | ||||||
| 25 | of total net revenue from the tax imposed by subsection (a) of | ||||||
| 26 | Section 3. Of the remaining 60%: (i) $5,000,000 shall be | ||||||
| |||||||
| |||||||
| 1 | deposited into the Illinois Sports Facilities Fund and | ||||||
| 2 | credited to the Subsidy Account each fiscal year by making | ||||||
| 3 | monthly deposits in the amount of 1/8 of $5,000,000 plus | ||||||
| 4 | cumulative deficiencies in such deposits for prior months, and | ||||||
| 5 | (ii) an amount equal to the then applicable Advance Amount | ||||||
| 6 | shall be deposited into the Illinois Sports Facilities Fund | ||||||
| 7 | and credited to the Advance Account each fiscal year by making | ||||||
| 8 | monthly deposits in the amount of 1/8 of the then applicable | ||||||
| 9 | Advance Amount plus any cumulative deficiencies in such | ||||||
| 10 | deposits for prior months. (The deposits of the then | ||||||
| 11 | applicable Advance Amount during each fiscal year shall be | ||||||
| 12 | treated as advances of funds to the Illinois Sports Facilities | ||||||
| 13 | Authority for its corporate purposes to the extent paid to the | ||||||
| 14 | Authority or its trustee and shall be repaid into the General | ||||||
| 15 | Revenue Fund in the State Treasury by the State Treasurer on | ||||||
| 16 | behalf of the Authority pursuant to Section 19 of the Illinois | ||||||
| 17 | Sports Facilities Authority Act, as amended. If in any fiscal | ||||||
| 18 | year the full amount of the then applicable Advance Amount is | ||||||
| 19 | not repaid into the General Revenue Fund, then the deficiency | ||||||
| 20 | shall be paid from the amount in the Local Government | ||||||
| 21 | Distributive Fund that would otherwise be allocated to the | ||||||
| 22 | City of Chicago under the State Revenue Sharing Act.) | ||||||
| 23 | For purposes of the foregoing paragraph, the term "Advance | ||||||
| 24 | Amount" means, for fiscal year 2002, $22,179,000, and for | ||||||
| 25 | subsequent fiscal years through fiscal year 2033, 105.615% of | ||||||
| 26 | the Advance Amount for the immediately preceding fiscal year, | ||||||
| |||||||
| |||||||
| 1 | rounded up to the nearest $1,000. | ||||||
| 2 | Of the remaining 60% of the amount of total net revenue | ||||||
| 3 | beginning on August 1, 2011 through June 30, 2023, from the tax | ||||||
| 4 | imposed by subsection (a) of Section 3 after all required | ||||||
| 5 | deposits into the Illinois Sports Facilities Fund, an amount | ||||||
| 6 | equal to 8% of the net revenue realized from this Act during | ||||||
| 7 | the preceding month shall be deposited as follows: 18% of such | ||||||
| 8 | amount shall be deposited into the Chicago Travel Industry | ||||||
| 9 | Promotion Fund for the purposes described in subsection (n) of | ||||||
| 10 | Section 5 of the Metropolitan Pier and Exposition Authority | ||||||
| 11 | Act and the remaining 82% of such amount shall be deposited | ||||||
| 12 | into the Local Tourism Fund each month for purposes authorized | ||||||
| 13 | by Section 605-705 of the Department of Commerce and Economic | ||||||
| 14 | Opportunity Law. Beginning on August 1, 2011 and through June | ||||||
| 15 | 30, 2023, an amount equal to 4.5% of the net revenue realized | ||||||
| 16 | from this Act during the preceding month shall be deposited as | ||||||
| 17 | follows: 55% of such amount shall be deposited into the | ||||||
| 18 | Chicago Travel Industry Promotion Fund for the purposes | ||||||
| 19 | described in subsection (n) of Section 5 of the Metropolitan | ||||||
| 20 | Pier and Exposition Authority Act and the remaining 45% of | ||||||
| 21 | such amount deposited into the International Tourism Fund for | ||||||
| 22 | the purposes authorized in Section 605-707 of the Department | ||||||
| 23 | of Commerce and Economic Opportunity Law. "Net revenue | ||||||
| 24 | realized" means the revenue collected by the State under this | ||||||
| 25 | Act less the amount paid out as refunds to taxpayers for | ||||||
| 26 | overpayment of liability under this Act. | ||||||
| |||||||
| |||||||
| 1 | Beginning on July 1, 2023, of the remaining 60% of the | ||||||
| 2 | amount of total net revenue realized from the tax imposed | ||||||
| 3 | under subsection (a) of Section 3, after all required deposits | ||||||
| 4 | into the Illinois Sports Facilities Fund: | ||||||
| 5 | (1) an amount equal to 8% of the net revenue realized | ||||||
| 6 | under this Act for the preceding month shall be deposited | ||||||
| 7 | as follows: 82% to the Local Tourism Fund and 18% to the | ||||||
| 8 | Chicago Travel Industry Promotion Fund; and | ||||||
| 9 | (2) an amount equal to 4.5% of the net revenue | ||||||
| 10 | realized under this Act for the preceding month shall be | ||||||
| 11 | deposited as follows: 55% to the Chicago Travel Industry | ||||||
| 12 | Promotion Fund and 45% to the International Tourism Fund. | ||||||
| 13 | After making all these deposits, any remaining net revenue | ||||||
| 14 | realized from the tax imposed under subsection (a) of Section | ||||||
| 15 | 3 shall be deposited into the Tourism Promotion Fund in the | ||||||
| 16 | State Treasury. All moneys received by the Department from the | ||||||
| 17 | additional tax imposed under subsection (b) of Section 3 shall | ||||||
| 18 | be deposited into the Build Illinois Fund in the State | ||||||
| 19 | Treasury. | ||||||
| 20 | The Department may, upon separate written notice to a | ||||||
| 21 | taxpayer, require the taxpayer to prepare and file with the | ||||||
| 22 | Department on a form prescribed by the Department within not | ||||||
| 23 | less than 60 days after receipt of the notice an annual | ||||||
| 24 | information return for the tax year specified in the notice. | ||||||
| 25 | Such annual return to the Department shall include a statement | ||||||
| 26 | of gross receipts as shown by the operator's last State income | ||||||
| |||||||
| |||||||
| 1 | tax return. If the total receipts of the business as reported | ||||||
| 2 | in the State income tax return do not agree with the gross | ||||||
| 3 | receipts reported to the Department for the same period, the | ||||||
| 4 | operator shall attach to his annual information return a | ||||||
| 5 | schedule showing a reconciliation of the 2 amounts and the | ||||||
| 6 | reasons for the difference. The operator's annual information | ||||||
| 7 | return to the Department shall also disclose payroll | ||||||
| 8 | information of the operator's business during the year covered | ||||||
| 9 | by such return and any additional reasonable information which | ||||||
| 10 | the Department deems would be helpful in determining the | ||||||
| 11 | accuracy of the monthly, quarterly or annual tax returns by | ||||||
| 12 | such operator as hereinbefore provided for in this Section. | ||||||
| 13 | If the annual information return required by this Section | ||||||
| 14 | is not filed when and as required the taxpayer shall be liable | ||||||
| 15 | for a penalty in an amount determined in accordance with | ||||||
| 16 | Section 3-4 of the Uniform Penalty and Interest Act until such | ||||||
| 17 | return is filed as required, the penalty to be assessed and | ||||||
| 18 | collected in the same manner as any other penalty provided for | ||||||
| 19 | in this Act. | ||||||
| 20 | The chief executive officer, proprietor, owner or highest | ||||||
| 21 | ranking manager shall sign the annual return to certify the | ||||||
| 22 | accuracy of the information contained therein. Any person who | ||||||
| 23 | willfully signs the annual return containing false or | ||||||
| 24 | inaccurate information shall be guilty of perjury and punished | ||||||
| 25 | accordingly. The annual return form prescribed by the | ||||||
| 26 | Department shall include a warning that the person signing the | ||||||
| |||||||
| |||||||
| 1 | return may be liable for perjury. | ||||||
| 2 | The foregoing portion of this Section concerning the | ||||||
| 3 | filing of an annual information return shall not apply to an | ||||||
| 4 | operator who is not required to file an income tax return with | ||||||
| 5 | the United States Government. | ||||||
| 6 | (Source: P.A. 102-16, eff. 6-17-21; 103-8, eff. 6-7-23.)
| ||||||
| 7 | Section 65-10. The Illinois Municipal Code is amended by | ||||||
| 8 | changing Section 8-3-13 as follows:
| ||||||
| 9 | (65 ILCS 5/8-3-13) (from Ch. 24, par. 8-3-13) | ||||||
| 10 | Sec. 8-3-13. The corporate authorities of any municipality | ||||||
| 11 | containing 500,000 or more inhabitants may impose a tax prior | ||||||
| 12 | to July 1, 1969, upon all hotel operators persons engaged in | ||||||
| 13 | the municipality in the business of renting, leasing or | ||||||
| 14 | letting rooms in a hotel, as defined in the Hotel Operators' | ||||||
| 15 | Occupation Tax Act, at a rate not to exceed 1% of the gross | ||||||
| 16 | rental receipts from engaging in business as a hotel operator | ||||||
| 17 | the renting, leasing or letting, excluding, however, from | ||||||
| 18 | gross rental receipts, the proceeds of the renting, leasing or | ||||||
| 19 | letting of hotel rooms to permanent residents of a that hotel | ||||||
| 20 | and proceeds from the tax imposed under subsection (c) of | ||||||
| 21 | Section 13 of the Metropolitan Pier and Exposition Authority | ||||||
| 22 | Act. | ||||||
| 23 | The tax imposed by a municipality under this Section and | ||||||
| 24 | all civil penalties that may be assessed as an incident | ||||||
| |||||||
| |||||||
| 1 | thereof shall be collected and enforced by the State | ||||||
| 2 | Department of Revenue. The certificate of registration that is | ||||||
| 3 | issued by the Department to a lessor under the Hotel | ||||||
| 4 | Operators' Occupation Tax Act shall permit the registrant to | ||||||
| 5 | engage in a business that is taxable under any ordinance or | ||||||
| 6 | resolution enacted under this Section without registering | ||||||
| 7 | separately with the Department under the ordinance or | ||||||
| 8 | resolution or under this Section. The Department shall have | ||||||
| 9 | full power to administer and enforce this Section; to collect | ||||||
| 10 | all taxes and penalties due hereunder; to dispose of taxes and | ||||||
| 11 | penalties so collected in the manner provided in this Section; | ||||||
| 12 | and to determine all rights to credit memoranda arising on | ||||||
| 13 | account of the erroneous payment of tax or penalty hereunder. | ||||||
| 14 | In the administration of and compliance with this Section, the | ||||||
| 15 | Department and persons who are subject to this Section shall | ||||||
| 16 | have the same rights, remedies, privileges, immunities, powers | ||||||
| 17 | and duties, and be subject to the same conditions, | ||||||
| 18 | restrictions, limitations, penalties and definitions of terms, | ||||||
| 19 | and employ the same modes of procedure, as are prescribed in | ||||||
| 20 | the Hotel Operators' Occupation Tax Act and the Uniform | ||||||
| 21 | Penalty and Interest Act, as fully as if the provisions | ||||||
| 22 | contained in those Acts were set forth herein. | ||||||
| 23 | Whenever the Department determines that a refund should be | ||||||
| 24 | made under this Section to a claimant instead of issuing a | ||||||
| 25 | credit memorandum, the Department shall notify the State | ||||||
| 26 | Comptroller, who shall cause the warrant to be drawn for the | ||||||
| |||||||
| |||||||
| 1 | amount specified, and to the person named, in the notification | ||||||
| 2 | from the Department. The refund shall be paid by the State | ||||||
| 3 | Treasurer out of the Illinois tourism tax fund. | ||||||
| 4 | Persons subject to any tax imposed under authority granted | ||||||
| 5 | by this Section may reimburse themselves for their tax | ||||||
| 6 | liability for that tax by separately stating the tax as an | ||||||
| 7 | additional charge, which charge may be stated in combination, | ||||||
| 8 | in a single amount, with State tax imposed under the Hotel | ||||||
| 9 | Operators' Occupation Tax Act. | ||||||
| 10 | The Department shall forthwith pay over to the State | ||||||
| 11 | Treasurer, ex-officio, as trustee, all taxes and penalties | ||||||
| 12 | collected hereunder. On or before the 25th day of each | ||||||
| 13 | calendar month, the Department shall prepare and certify to | ||||||
| 14 | the Comptroller the disbursement of stated sums of money to | ||||||
| 15 | named municipalities from which lessors have paid taxes or | ||||||
| 16 | penalties hereunder to the Department during the second | ||||||
| 17 | preceding calendar month. The amount to be paid to each | ||||||
| 18 | municipality shall be the amount (not including credit | ||||||
| 19 | memoranda) collected hereunder during the second preceding | ||||||
| 20 | calendar month by the Department, and not including an amount | ||||||
| 21 | equal to the amount of refunds made during the second | ||||||
| 22 | preceding calendar month by the Department on behalf of the | ||||||
| 23 | municipality, less 4% of the balance, which sum shall be | ||||||
| 24 | retained by the State Treasurer to cover the costs incurred by | ||||||
| 25 | the Department in administering and enforcing the provisions | ||||||
| 26 | of this Section, as provided herein. The Department, at the | ||||||
| |||||||
| |||||||
| 1 | time of each monthly disbursement to the municipalities, shall | ||||||
| 2 | prepare and certify to the Comptroller the amount so retained | ||||||
| 3 | by the State Treasurer, which shall be paid into the General | ||||||
| 4 | Revenue Fund of the State Treasury. | ||||||
| 5 | Within 10 days after receipt by the Comptroller of the | ||||||
| 6 | disbursement certification to the municipalities and the | ||||||
| 7 | General Revenue Fund provided for in this Section to be given | ||||||
| 8 | to the Comptroller by the Department, the Comptroller shall | ||||||
| 9 | cause the warrants to be drawn for the respective amounts in | ||||||
| 10 | accordance with the directions contained in the certification. | ||||||
| 11 | Nothing in this Section shall be construed to authorize a | ||||||
| 12 | municipality to impose a tax upon the privilege of engaging in | ||||||
| 13 | any business that, under the Constitution of the United | ||||||
| 14 | States, may not be made the subject of taxation by this State. | ||||||
| 15 | An ordinance or resolution imposing a tax hereunder or | ||||||
| 16 | effecting a change in the rate thereof shall be effective on | ||||||
| 17 | the first day of the calendar month next following the | ||||||
| 18 | expiration of the publication period provided in Section 1-2-4 | ||||||
| 19 | in respect to municipalities governed by that Section. | ||||||
| 20 | The corporate authorities of any municipality that levies | ||||||
| 21 | a tax authorized by this Section shall transmit to the | ||||||
| 22 | Department of Revenue on or not later than 5 days after the | ||||||
| 23 | effective date of the ordinance or resolution a certified copy | ||||||
| 24 | of the ordinance or resolution imposing the tax; whereupon, | ||||||
| 25 | the Department of Revenue shall proceed to administer and | ||||||
| 26 | enforce this Section on behalf of the municipality as of the | ||||||
| |||||||
| |||||||
| 1 | effective date of the ordinance or resolution. Upon a change | ||||||
| 2 | in rate of a tax levied hereunder, or upon the discontinuance | ||||||
| 3 | of the tax, the corporate authorities of the municipality | ||||||
| 4 | shall, on or not later than 5 days after the effective date of | ||||||
| 5 | the ordinance or resolution discontinuing the tax or effecting | ||||||
| 6 | a change in rate, transmit to the Department of Revenue a | ||||||
| 7 | certified copy of the ordinance or resolution effecting the | ||||||
| 8 | change or discontinuance. The amounts disbursed to any | ||||||
| 9 | municipality under this Section shall be expended by the | ||||||
| 10 | municipality solely to promote tourism, conventions and other | ||||||
| 11 | special events within that municipality or otherwise to | ||||||
| 12 | attract nonresidents to visit the municipality. | ||||||
| 13 | Any municipality receiving and disbursing money under this | ||||||
| 14 | Section shall report on or before the first Monday in January | ||||||
| 15 | of each year to the Advisory Committee of the Illinois Tourism | ||||||
| 16 | Promotion Fund, created by Section 12 of the Illinois | ||||||
| 17 | Promotion Act. The reports shall specify the purposes for | ||||||
| 18 | which the disbursements were made and shall contain detailed | ||||||
| 19 | amounts of all receipts and disbursements under this Section. | ||||||
| 20 | This Section may be cited as the Tourism, Conventions and | ||||||
| 21 | Other Special Events Promotion Act of 1967. | ||||||
| 22 | (Source: P.A. 87-205; 87-733; 87-895.)
| ||||||
| 23 | Section 65-15. The Metropolitan Pier and Exposition | ||||||
| 24 | Authority Act is amended by changing Section 13 as follows:
| ||||||
| |||||||
| |||||||
| 1 | (70 ILCS 210/13) (from Ch. 85, par. 1233) | ||||||
| 2 | Sec. 13. (a) The Authority shall not have power to levy | ||||||
| 3 | taxes for any purpose, except as provided in subsections (b), | ||||||
| 4 | (c), (d), (e), and (f). | ||||||
| 5 | (b) By ordinance the Authority shall, as soon as | ||||||
| 6 | practicable after July 1, 1992 (the effective date of Public | ||||||
| 7 | Act 87-733), impose a Metropolitan Pier and Exposition | ||||||
| 8 | Authority Retailers' Occupation Tax upon all persons engaged | ||||||
| 9 | in the business of selling tangible personal property at | ||||||
| 10 | retail within the territory described in this subsection at | ||||||
| 11 | the rate of 1.0% of the gross receipts (i) from the sale of | ||||||
| 12 | food, alcoholic beverages, and soft drinks sold for | ||||||
| 13 | consumption on the premises where sold and (ii) from the sale | ||||||
| 14 | of food, alcoholic beverages, and soft drinks sold for | ||||||
| 15 | consumption off the premises where sold by a retailer whose | ||||||
| 16 | principal source of gross receipts is from the sale of food, | ||||||
| 17 | alcoholic beverages, and soft drinks prepared for immediate | ||||||
| 18 | consumption. | ||||||
| 19 | The tax imposed under this subsection and all civil | ||||||
| 20 | penalties that may be assessed as an incident to that tax shall | ||||||
| 21 | be collected and enforced by the Illinois Department of | ||||||
| 22 | Revenue. The Department shall have full power to administer | ||||||
| 23 | and enforce this subsection, to collect all taxes and | ||||||
| 24 | penalties so collected in the manner provided in this | ||||||
| 25 | subsection, and to determine all rights to credit memoranda | ||||||
| 26 | arising on account of the erroneous payment of tax or penalty | ||||||
| |||||||
| |||||||
| 1 | under this subsection. In the administration of and compliance | ||||||
| 2 | with this subsection, the Department and persons who are | ||||||
| 3 | subject to this subsection shall have the same rights, | ||||||
| 4 | remedies, privileges, immunities, powers, and duties, shall be | ||||||
| 5 | subject to the same conditions, restrictions, limitations, | ||||||
| 6 | penalties, exclusions, exemptions, and definitions of terms, | ||||||
| 7 | and shall employ the same modes of procedure applicable to | ||||||
| 8 | this Retailers' Occupation Tax as are prescribed in Sections | ||||||
| 9 | 1, 2 through 2-65 (in respect to all provisions of those | ||||||
| 10 | Sections other than the State rate of taxes), 2c, 2h, 2i, 3 | ||||||
| 11 | (except as to the disposition of taxes and penalties | ||||||
| 12 | collected), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, | ||||||
| 13 | 6b, 6c, 7, 8, 9, 10, 11, 12, 13, and, until January 1, 1994, | ||||||
| 14 | 13.5 of the Retailers' Occupation Tax Act, and, on and after | ||||||
| 15 | January 1, 1994, all applicable provisions of the Uniform | ||||||
| 16 | Penalty and Interest Act that are not inconsistent with this | ||||||
| 17 | Act, as fully as if provisions contained in those Sections of | ||||||
| 18 | the Retailers' Occupation Tax Act were set forth in this | ||||||
| 19 | subsection. | ||||||
| 20 | Persons subject to any tax imposed under the authority | ||||||
| 21 | granted in this subsection may reimburse themselves for their | ||||||
| 22 | seller's tax liability under this subsection by separately | ||||||
| 23 | stating that tax as an additional charge, which charge may be | ||||||
| 24 | stated in combination, in a single amount, with State taxes | ||||||
| 25 | that sellers are required to collect under the Use Tax Act, | ||||||
| 26 | pursuant to bracket schedules as the Department may prescribe. | ||||||
| |||||||
| |||||||
| 1 | The retailer filing the return shall, at the time of filing the | ||||||
| 2 | return, pay to the Department the amount of tax imposed under | ||||||
| 3 | this subsection, less a discount of 1.75%, which is allowed to | ||||||
| 4 | reimburse the retailer for the expenses incurred in keeping | ||||||
| 5 | records, preparing and filing returns, remitting the tax, and | ||||||
| 6 | supplying data to the Department on request. | ||||||
| 7 | Whenever the Department determines that a refund should be | ||||||
| 8 | made under this subsection to a claimant instead of issuing a | ||||||
| 9 | credit memorandum, the Department shall notify the State | ||||||
| 10 | Comptroller, who shall cause a warrant to be drawn for the | ||||||
| 11 | amount specified and to the person named in the notification | ||||||
| 12 | from the Department. The refund shall be paid by the State | ||||||
| 13 | Treasurer out of the Metropolitan Pier and Exposition | ||||||
| 14 | Authority trust fund held by the State Treasurer as trustee | ||||||
| 15 | for the Authority. | ||||||
| 16 | Nothing in this subsection authorizes the Authority to | ||||||
| 17 | impose a tax upon the privilege of engaging in any business | ||||||
| 18 | that under the Constitution of the United States may not be | ||||||
| 19 | made the subject of taxation by this State. | ||||||
| 20 | The Department shall forthwith pay over to the State | ||||||
| 21 | Treasurer, ex officio, as trustee for the Authority, all taxes | ||||||
| 22 | and penalties collected under this subsection for deposit into | ||||||
| 23 | a trust fund held outside of the State Treasury. | ||||||
| 24 | As soon as possible after the first day of each month, | ||||||
| 25 | beginning January 1, 2011, upon certification of the | ||||||
| 26 | Department of Revenue, the Comptroller shall order | ||||||
| |||||||
| |||||||
| 1 | transferred, and the Treasurer shall transfer, to the STAR | ||||||
| 2 | Bonds Revenue Fund the local sales tax increment, as defined | ||||||
| 3 | in the Innovation Development and Economy Act, collected under | ||||||
| 4 | this subsection during the second preceding calendar month for | ||||||
| 5 | sales within a STAR bond district. | ||||||
| 6 | After the monthly transfer to the STAR Bonds Revenue Fund, | ||||||
| 7 | on or before the 25th day of each calendar month, the | ||||||
| 8 | Department shall prepare and certify to the Comptroller the | ||||||
| 9 | amounts to be paid under subsection (g) of this Section, which | ||||||
| 10 | shall be the amounts, not including credit memoranda, | ||||||
| 11 | collected under this subsection during the second preceding | ||||||
| 12 | calendar month by the Department, less any amounts determined | ||||||
| 13 | by the Department to be necessary for the payment of refunds, | ||||||
| 14 | less 1.5% of such balance, which sum shall be deposited by the | ||||||
| 15 | State Treasurer into the Tax Compliance and Administration | ||||||
| 16 | Fund in the State Treasury from which it shall be appropriated | ||||||
| 17 | to the Department to cover the costs of the Department in | ||||||
| 18 | administering and enforcing the provisions of this subsection, | ||||||
| 19 | and less any amounts that are transferred to the STAR Bonds | ||||||
| 20 | Revenue Fund. Within 10 days after receipt by the Comptroller | ||||||
| 21 | of the certification, the Comptroller shall cause the orders | ||||||
| 22 | to be drawn for the remaining amounts, and the Treasurer shall | ||||||
| 23 | administer those amounts as required in subsection (g). | ||||||
| 24 | A certificate of registration issued by the Illinois | ||||||
| 25 | Department of Revenue to a retailer under the Retailers' | ||||||
| 26 | Occupation Tax Act shall permit the registrant to engage in a | ||||||
| |||||||
| |||||||
| 1 | business that is taxed under the tax imposed under this | ||||||
| 2 | subsection, and no additional registration shall be required | ||||||
| 3 | under the ordinance imposing the tax or under this subsection. | ||||||
| 4 | A certified copy of any ordinance imposing or | ||||||
| 5 | discontinuing any tax under this subsection or effecting a | ||||||
| 6 | change in the rate of that tax shall be filed with the | ||||||
| 7 | Department, whereupon the Department shall proceed to | ||||||
| 8 | administer and enforce this subsection on behalf of the | ||||||
| 9 | Authority as of the first day of the third calendar month | ||||||
| 10 | following the date of filing. | ||||||
| 11 | The tax authorized to be levied under this subsection may | ||||||
| 12 | be levied within all or any part of the following described | ||||||
| 13 | portions of the metropolitan area: | ||||||
| 14 | (1) that portion of the City of Chicago located within | ||||||
| 15 | the following area: Beginning at the point of intersection | ||||||
| 16 | of the Cook County - DuPage County line and York Road, then | ||||||
| 17 | North along York Road to its intersection with Touhy | ||||||
| 18 | Avenue, then east along Touhy Avenue to its intersection | ||||||
| 19 | with the Northwest Tollway, then southeast along the | ||||||
| 20 | Northwest Tollway to its intersection with Lee Street, | ||||||
| 21 | then south along Lee Street to Higgins Road, then south | ||||||
| 22 | and east along Higgins Road to its intersection with | ||||||
| 23 | Mannheim Road, then south along Mannheim Road to its | ||||||
| 24 | intersection with Irving Park Road, then west along Irving | ||||||
| 25 | Park Road to its intersection with the Cook County - | ||||||
| 26 | DuPage County line, then north and west along the county | ||||||
| |||||||
| |||||||
| 1 | line to the point of beginning; and | ||||||
| 2 | (2) that portion of the City of Chicago located within | ||||||
| 3 | the following area: Beginning at the intersection of West | ||||||
| 4 | 55th Street with Central Avenue, then east along West 55th | ||||||
| 5 | Street to its intersection with South Cicero Avenue, then | ||||||
| 6 | south along South Cicero Avenue to its intersection with | ||||||
| 7 | West 63rd Street, then west along West 63rd Street to its | ||||||
| 8 | intersection with South Central Avenue, then north along | ||||||
| 9 | South Central Avenue to the point of beginning; and | ||||||
| 10 | (3) that portion of the City of Chicago located within | ||||||
| 11 | the following area: Beginning at the point 150 feet west | ||||||
| 12 | of the intersection of the west line of North Ashland | ||||||
| 13 | Avenue and the north line of West Diversey Avenue, then | ||||||
| 14 | north 150 feet, then east along a line 150 feet north of | ||||||
| 15 | the north line of West Diversey Avenue extended to the | ||||||
| 16 | shoreline of Lake Michigan, then following the shoreline | ||||||
| 17 | of Lake Michigan (including Navy Pier and all other | ||||||
| 18 | improvements fixed to land, docks, or piers) to the point | ||||||
| 19 | where the shoreline of Lake Michigan and the Adlai E. | ||||||
| 20 | Stevenson Expressway extended east to that shoreline | ||||||
| 21 | intersect, then west along the Adlai E. Stevenson | ||||||
| 22 | Expressway to a point 150 feet west of the west line of | ||||||
| 23 | South Ashland Avenue, then north along a line 150 feet | ||||||
| 24 | west of the west line of South and North Ashland Avenue to | ||||||
| 25 | the point of beginning. | ||||||
| 26 | The tax authorized to be levied under this subsection may | ||||||
| |||||||
| |||||||
| 1 | also be levied on food, alcoholic beverages, and soft drinks | ||||||
| 2 | sold on boats and other watercraft departing from and | ||||||
| 3 | returning to the shoreline of Lake Michigan (including Navy | ||||||
| 4 | Pier and all other improvements fixed to land, docks, or | ||||||
| 5 | piers) described in item (3). | ||||||
| 6 | (c) By ordinance the Authority shall, as soon as | ||||||
| 7 | practicable after July 1, 1992 (the effective date of Public | ||||||
| 8 | Act 87-733), impose an occupation tax upon all hotel operators | ||||||
| 9 | persons engaged in the corporate limits of the City of Chicago | ||||||
| 10 | in the business of renting, leasing, or letting rooms in a | ||||||
| 11 | hotel, as defined in the Hotel Operators' Occupation Tax Act, | ||||||
| 12 | at a rate of 2.5% of the gross rental receipts from engaging in | ||||||
| 13 | business as a hotel operator the renting, leasing, or letting | ||||||
| 14 | of hotel rooms within the City of Chicago, excluding, however, | ||||||
| 15 | from gross rental receipts the proceeds of renting, leasing, | ||||||
| 16 | or letting of hotel rooms to permanent residents of a hotel, as | ||||||
| 17 | defined in that Act. Gross rental receipts shall not include | ||||||
| 18 | charges that are added on account of the liability arising | ||||||
| 19 | from any tax imposed by the State or any governmental agency on | ||||||
| 20 | the occupation of renting, leasing, or letting rooms in a | ||||||
| 21 | hotel. | ||||||
| 22 | The tax imposed by the Authority under this subsection and | ||||||
| 23 | all civil penalties that may be assessed as an incident to that | ||||||
| 24 | tax shall be collected and enforced by the Illinois Department | ||||||
| 25 | of Revenue. The certificate of registration that is issued by | ||||||
| 26 | the Department to a lessor under the Hotel Operators' | ||||||
| |||||||
| |||||||
| 1 | Occupation Tax Act shall permit that registrant to engage in a | ||||||
| 2 | business that is taxable under any ordinance enacted under | ||||||
| 3 | this subsection without registering separately with the | ||||||
| 4 | Department under that ordinance or under this subsection. The | ||||||
| 5 | Department shall have full power to administer and enforce | ||||||
| 6 | this subsection, to collect all taxes and penalties due under | ||||||
| 7 | this subsection, to dispose of taxes and penalties so | ||||||
| 8 | collected in the manner provided in this subsection, and to | ||||||
| 9 | determine all rights to credit memoranda arising on account of | ||||||
| 10 | the erroneous payment of tax or penalty under this subsection. | ||||||
| 11 | In the administration of and compliance with this subsection, | ||||||
| 12 | the Department and persons who are subject to this subsection | ||||||
| 13 | shall have the same rights, remedies, privileges, immunities, | ||||||
| 14 | powers, and duties, shall be subject to the same conditions, | ||||||
| 15 | restrictions, limitations, penalties, and definitions of | ||||||
| 16 | terms, and shall employ the same modes of procedure as are | ||||||
| 17 | prescribed in the Hotel Operators' Occupation Tax Act (except | ||||||
| 18 | where that Act is inconsistent with this subsection), as fully | ||||||
| 19 | as if the provisions contained in the Hotel Operators' | ||||||
| 20 | Occupation Tax Act were set out in this subsection. | ||||||
| 21 | Whenever the Department determines that a refund should be | ||||||
| 22 | made under this subsection to a claimant instead of issuing a | ||||||
| 23 | credit memorandum, the Department shall notify the State | ||||||
| 24 | Comptroller, who shall cause a warrant to be drawn for the | ||||||
| 25 | amount specified and to the person named in the notification | ||||||
| 26 | from the Department. The refund shall be paid by the State | ||||||
| |||||||
| |||||||
| 1 | Treasurer out of the Metropolitan Pier and Exposition | ||||||
| 2 | Authority trust fund held by the State Treasurer as trustee | ||||||
| 3 | for the Authority. | ||||||
| 4 | Persons subject to any tax imposed under the authority | ||||||
| 5 | granted in this subsection may reimburse themselves for their | ||||||
| 6 | tax liability for that tax by separately stating that tax as an | ||||||
| 7 | additional charge, which charge may be stated in combination, | ||||||
| 8 | in a single amount, with State taxes imposed under the Hotel | ||||||
| 9 | Operators' Occupation Tax Act, the municipal tax imposed under | ||||||
| 10 | Section 8-3-13 of the Illinois Municipal Code, and the tax | ||||||
| 11 | imposed under Section 19 of the Illinois Sports Facilities | ||||||
| 12 | Authority Act. | ||||||
| 13 | The person filing the return shall, at the time of filing | ||||||
| 14 | the return, pay to the Department the amount of tax, less a | ||||||
| 15 | discount of 2.1% or $25 per calendar year, whichever is | ||||||
| 16 | greater, which is allowed to reimburse the operator for the | ||||||
| 17 | expenses incurred in keeping records, preparing and filing | ||||||
| 18 | returns, remitting the tax, and supplying data to the | ||||||
| 19 | Department on request. | ||||||
| 20 | Except as otherwise provided in this paragraph, the | ||||||
| 21 | Department shall forthwith pay over to the State Treasurer, ex | ||||||
| 22 | officio, as trustee for the Authority, all taxes and penalties | ||||||
| 23 | collected under this subsection for deposit into a trust fund | ||||||
| 24 | held outside the State Treasury. On or before the 25th day of | ||||||
| 25 | each calendar month, the Department shall certify to the | ||||||
| 26 | Comptroller the amounts to be paid under subsection (g) of | ||||||
| |||||||
| |||||||
| 1 | this Section, which shall be the amounts (not including credit | ||||||
| 2 | memoranda) collected under this subsection during the second | ||||||
| 3 | preceding calendar month by the Department, less any amounts | ||||||
| 4 | determined by the Department to be necessary for payment of | ||||||
| 5 | refunds, less 1.5% of the remainder, which the Department | ||||||
| 6 | shall transfer into the Tax Compliance and Administration | ||||||
| 7 | Fund. The Department, at the time of each monthly disbursement | ||||||
| 8 | to the Authority, shall prepare and certify to the State | ||||||
| 9 | Comptroller the amount to be transferred into the Tax | ||||||
| 10 | Compliance and Administration Fund under this subsection. | ||||||
| 11 | Within 10 days after receipt by the Comptroller of the | ||||||
| 12 | Department's certification, the Comptroller shall cause the | ||||||
| 13 | orders to be drawn for such amounts, and the Treasurer shall | ||||||
| 14 | administer the amounts distributed to the Authority as | ||||||
| 15 | required in subsection (g). | ||||||
| 16 | A certified copy of any ordinance imposing or | ||||||
| 17 | discontinuing a tax under this subsection or effecting a | ||||||
| 18 | change in the rate of that tax shall be filed with the Illinois | ||||||
| 19 | Department of Revenue, whereupon the Department shall proceed | ||||||
| 20 | to administer and enforce this subsection on behalf of the | ||||||
| 21 | Authority as of the first day of the third calendar month | ||||||
| 22 | following the date of filing. | ||||||
| 23 | (d) By ordinance the Authority shall, as soon as | ||||||
| 24 | practicable after July 1, 1992 (the effective date of Public | ||||||
| 25 | Act 87-733), impose a tax upon all persons engaged in the | ||||||
| 26 | business of renting automobiles in the metropolitan area at | ||||||
| |||||||
| |||||||
| 1 | the rate of 6% of the gross receipts from that business, except | ||||||
| 2 | that no tax shall be imposed on the business of renting | ||||||
| 3 | automobiles for use as taxicabs or in livery service. The tax | ||||||
| 4 | imposed under this subsection and all civil penalties that may | ||||||
| 5 | be assessed as an incident to that tax shall be collected and | ||||||
| 6 | enforced by the Illinois Department of Revenue. The | ||||||
| 7 | certificate of registration issued by the Department to a | ||||||
| 8 | retailer under the Retailers' Occupation Tax Act or under the | ||||||
| 9 | Automobile Renting Occupation and Use Tax Act shall permit | ||||||
| 10 | that person to engage in a business that is taxable under any | ||||||
| 11 | ordinance enacted under this subsection without registering | ||||||
| 12 | separately with the Department under that ordinance or under | ||||||
| 13 | this subsection. The Department shall have full power to | ||||||
| 14 | administer and enforce this subsection, to collect all taxes | ||||||
| 15 | and penalties due under this subsection, to dispose of taxes | ||||||
| 16 | and penalties so collected in the manner provided in this | ||||||
| 17 | subsection, and to determine all rights to credit memoranda | ||||||
| 18 | arising on account of the erroneous payment of tax or penalty | ||||||
| 19 | under this subsection. In the administration of and compliance | ||||||
| 20 | with this subsection, the Department and persons who are | ||||||
| 21 | subject to this subsection shall have the same rights, | ||||||
| 22 | remedies, privileges, immunities, powers, and duties, be | ||||||
| 23 | subject to the same conditions, restrictions, limitations, | ||||||
| 24 | penalties, and definitions of terms, and employ the same modes | ||||||
| 25 | of procedure as are prescribed in Sections 2 and 3 (in respect | ||||||
| 26 | to all provisions of those Sections other than the State rate | ||||||
| |||||||
| |||||||
| 1 | of tax; and in respect to the provisions of the Retailers' | ||||||
| 2 | Occupation Tax Act referred to in those Sections, except as to | ||||||
| 3 | the disposition of taxes and penalties collected, except for | ||||||
| 4 | the provision allowing retailers a deduction from the tax to | ||||||
| 5 | cover certain costs, and except that credit memoranda issued | ||||||
| 6 | under this subsection may not be used to discharge any State | ||||||
| 7 | tax liability) of the Automobile Renting Occupation and Use | ||||||
| 8 | Tax Act, as fully as if provisions contained in those Sections | ||||||
| 9 | of that Act were set forth in this subsection. | ||||||
| 10 | Persons subject to any tax imposed under the authority | ||||||
| 11 | granted in this subsection may reimburse themselves for their | ||||||
| 12 | tax liability under this subsection by separately stating that | ||||||
| 13 | tax as an additional charge, which charge may be stated in | ||||||
| 14 | combination, in a single amount, with State tax that sellers | ||||||
| 15 | are required to collect under the Automobile Renting | ||||||
| 16 | Occupation and Use Tax Act, pursuant to bracket schedules as | ||||||
| 17 | the Department may prescribe. | ||||||
| 18 | Whenever the Department determines that a refund should be | ||||||
| 19 | made under this subsection to a claimant instead of issuing a | ||||||
| 20 | credit memorandum, the Department shall notify the State | ||||||
| 21 | Comptroller, who shall cause a warrant to be drawn for the | ||||||
| 22 | amount specified and to the person named in the notification | ||||||
| 23 | from the Department. The refund shall be paid by the State | ||||||
| 24 | Treasurer out of the Metropolitan Pier and Exposition | ||||||
| 25 | Authority trust fund held by the State Treasurer as trustee | ||||||
| 26 | for the Authority. | ||||||
| |||||||
| |||||||
| 1 | Except as otherwise provided in this paragraph, the | ||||||
| 2 | Department shall forthwith pay over to the State Treasurer, ex | ||||||
| 3 | officio, as trustee, all taxes and penalties collected under | ||||||
| 4 | this subsection for deposit into a trust fund held outside the | ||||||
| 5 | State Treasury. On or before the 25th day of each calendar | ||||||
| 6 | month, the Department shall certify to the Comptroller the | ||||||
| 7 | amounts to be paid under subsection (g) of this Section (not | ||||||
| 8 | including credit memoranda) collected under this subsection | ||||||
| 9 | during the second preceding calendar month by the Department, | ||||||
| 10 | less any amount determined by the Department to be necessary | ||||||
| 11 | for payment of refunds, less 1.5% of the remainder, which the | ||||||
| 12 | Department shall transfer into the Tax Compliance and | ||||||
| 13 | Administration Fund. The Department, at the time of each | ||||||
| 14 | monthly disbursement to the Authority, shall prepare and | ||||||
| 15 | certify to the State Comptroller the amount to be transferred | ||||||
| 16 | into the Tax Compliance and Administration Fund under this | ||||||
| 17 | subsection. Within 10 days after receipt by the Comptroller of | ||||||
| 18 | the Department's certification, the Comptroller shall cause | ||||||
| 19 | the orders to be drawn for such amounts, and the Treasurer | ||||||
| 20 | shall administer the amounts distributed to the Authority as | ||||||
| 21 | required in subsection (g). | ||||||
| 22 | Nothing in this subsection authorizes the Authority to | ||||||
| 23 | impose a tax upon the privilege of engaging in any business | ||||||
| 24 | that under the Constitution of the United States may not be | ||||||
| 25 | made the subject of taxation by this State. | ||||||
| 26 | A certified copy of any ordinance imposing or | ||||||
| |||||||
| |||||||
| 1 | discontinuing a tax under this subsection or effecting a | ||||||
| 2 | change in the rate of that tax shall be filed with the Illinois | ||||||
| 3 | Department of Revenue, whereupon the Department shall proceed | ||||||
| 4 | to administer and enforce this subsection on behalf of the | ||||||
| 5 | Authority as of the first day of the third calendar month | ||||||
| 6 | following the date of filing. | ||||||
| 7 | (e) By ordinance the Authority shall, as soon as | ||||||
| 8 | practicable after July 1, 1992 (the effective date of Public | ||||||
| 9 | Act 87-733), impose a tax upon the privilege of using in the | ||||||
| 10 | metropolitan area an automobile that is rented from a rentor | ||||||
| 11 | outside Illinois and is titled or registered with an agency of | ||||||
| 12 | this State's government at a rate of 6% of the rental price of | ||||||
| 13 | that automobile, except that no tax shall be imposed on the | ||||||
| 14 | privilege of using automobiles rented for use as taxicabs or | ||||||
| 15 | in livery service. The tax shall be collected from persons | ||||||
| 16 | whose Illinois address for titling or registration purposes is | ||||||
| 17 | given as being in the metropolitan area. The tax shall be | ||||||
| 18 | collected by the Department of Revenue for the Authority. The | ||||||
| 19 | tax must be paid to the State or an exemption determination | ||||||
| 20 | must be obtained from the Department of Revenue before the | ||||||
| 21 | title or certificate of registration for the property may be | ||||||
| 22 | issued. The tax or proof of exemption may be transmitted to the | ||||||
| 23 | Department by way of the State agency with which or State | ||||||
| 24 | officer with whom the tangible personal property must be | ||||||
| 25 | titled or registered if the Department and that agency or | ||||||
| 26 | State officer determine that this procedure will expedite the | ||||||
| |||||||
| |||||||
| 1 | processing of applications for title or registration. | ||||||
| 2 | The Department shall have full power to administer and | ||||||
| 3 | enforce this subsection, to collect all taxes, penalties, and | ||||||
| 4 | interest due under this subsection, to dispose of taxes, | ||||||
| 5 | penalties, and interest so collected in the manner provided in | ||||||
| 6 | this subsection, and to determine all rights to credit | ||||||
| 7 | memoranda or refunds arising on account of the erroneous | ||||||
| 8 | payment of tax, penalty, or interest under this subsection. In | ||||||
| 9 | the administration of and compliance with this subsection, the | ||||||
| 10 | Department and persons who are subject to this subsection | ||||||
| 11 | shall have the same rights, remedies, privileges, immunities, | ||||||
| 12 | powers, and duties, be subject to the same conditions, | ||||||
| 13 | restrictions, limitations, penalties, and definitions of | ||||||
| 14 | terms, and employ the same modes of procedure as are | ||||||
| 15 | prescribed in Sections 2 and 4 (except provisions pertaining | ||||||
| 16 | to the State rate of tax; and in respect to the provisions of | ||||||
| 17 | the Use Tax Act referred to in that Section, except provisions | ||||||
| 18 | concerning collection or refunding of the tax by retailers, | ||||||
| 19 | except the provisions of Section 19 pertaining to claims by | ||||||
| 20 | retailers, except the last paragraph concerning refunds, and | ||||||
| 21 | except that credit memoranda issued under this subsection may | ||||||
| 22 | not be used to discharge any State tax liability) of the | ||||||
| 23 | Automobile Renting Occupation and Use Tax Act, as fully as if | ||||||
| 24 | provisions contained in those Sections of that Act were set | ||||||
| 25 | forth in this subsection. | ||||||
| 26 | Whenever the Department determines that a refund should be | ||||||
| |||||||
| |||||||
| 1 | made under this subsection to a claimant instead of issuing a | ||||||
| 2 | credit memorandum, the Department shall notify the State | ||||||
| 3 | Comptroller, who shall cause a warrant to be drawn for the | ||||||
| 4 | amount specified and to the person named in the notification | ||||||
| 5 | from the Department. The refund shall be paid by the State | ||||||
| 6 | Treasurer out of the Metropolitan Pier and Exposition | ||||||
| 7 | Authority trust fund held by the State Treasurer as trustee | ||||||
| 8 | for the Authority. | ||||||
| 9 | Except as otherwise provided in this paragraph, the | ||||||
| 10 | Department shall forthwith pay over to the State Treasurer, ex | ||||||
| 11 | officio, as trustee, all taxes, penalties, and interest | ||||||
| 12 | collected under this subsection for deposit into a trust fund | ||||||
| 13 | held outside the State Treasury. On or before the 25th day of | ||||||
| 14 | each calendar month, the Department shall certify to the State | ||||||
| 15 | Comptroller the amounts to be paid under subsection (g) of | ||||||
| 16 | this Section, which shall be the amounts (not including credit | ||||||
| 17 | memoranda) collected under this subsection during the second | ||||||
| 18 | preceding calendar month by the Department, less any amounts | ||||||
| 19 | determined by the Department to be necessary for payment of | ||||||
| 20 | refunds, less 1.5% of the remainder, which the Department | ||||||
| 21 | shall transfer into the Tax Compliance and Administration | ||||||
| 22 | Fund. The Department, at the time of each monthly disbursement | ||||||
| 23 | to the Authority, shall prepare and certify to the State | ||||||
| 24 | Comptroller the amount to be transferred into the Tax | ||||||
| 25 | Compliance and Administration Fund under this subsection. | ||||||
| 26 | Within 10 days after receipt by the State Comptroller of the | ||||||
| |||||||
| |||||||
| 1 | Department's certification, the Comptroller shall cause the | ||||||
| 2 | orders to be drawn for such amounts, and the Treasurer shall | ||||||
| 3 | administer the amounts distributed to the Authority as | ||||||
| 4 | required in subsection (g). | ||||||
| 5 | A certified copy of any ordinance imposing or | ||||||
| 6 | discontinuing a tax or effecting a change in the rate of that | ||||||
| 7 | tax shall be filed with the Illinois Department of Revenue, | ||||||
| 8 | whereupon the Department shall proceed to administer and | ||||||
| 9 | enforce this subsection on behalf of the Authority as of the | ||||||
| 10 | first day of the third calendar month following the date of | ||||||
| 11 | filing. | ||||||
| 12 | (f) By ordinance the Authority shall, as soon as | ||||||
| 13 | practicable after July 1, 1992 (the effective date of Public | ||||||
| 14 | Act 87-733), impose an occupation tax on all persons, other | ||||||
| 15 | than a governmental agency, engaged in the business of | ||||||
| 16 | providing ground transportation for hire to passengers in the | ||||||
| 17 | metropolitan area at a rate of (i) $4 per taxi or livery | ||||||
| 18 | vehicle departure with passengers for hire from commercial | ||||||
| 19 | service airports in the metropolitan area, (ii) for each | ||||||
| 20 | departure with passengers for hire from a commercial service | ||||||
| 21 | airport in the metropolitan area in a bus or van operated by a | ||||||
| 22 | person other than a person described in item (iii): $18 per bus | ||||||
| 23 | or van with a capacity of 1-12 passengers, $36 per bus or van | ||||||
| 24 | with a capacity of 13-24 passengers, and $54 per bus or van | ||||||
| 25 | with a capacity of over 24 passengers, and (iii) for each | ||||||
| 26 | departure with passengers for hire from a commercial service | ||||||
| |||||||
| |||||||
| 1 | airport in the metropolitan area in a bus or van operated by a | ||||||
| 2 | person regulated by the Interstate Commerce Commission or | ||||||
| 3 | Illinois Commerce Commission, operating scheduled service from | ||||||
| 4 | the airport, and charging fares on a per passenger basis: $2 | ||||||
| 5 | per passenger for hire in each bus or van. The term "commercial | ||||||
| 6 | service airports" means those airports receiving scheduled | ||||||
| 7 | passenger service and enplaning more than 100,000 passengers | ||||||
| 8 | per year. | ||||||
| 9 | In the ordinance imposing the tax, the Authority may | ||||||
| 10 | provide for the administration and enforcement of the tax and | ||||||
| 11 | the collection of the tax from persons subject to the tax as | ||||||
| 12 | the Authority determines to be necessary or practicable for | ||||||
| 13 | the effective administration of the tax. The Authority may | ||||||
| 14 | enter into agreements as it deems appropriate with any | ||||||
| 15 | governmental agency providing for that agency to act as the | ||||||
| 16 | Authority's agent to collect the tax. | ||||||
| 17 | In the ordinance imposing the tax, the Authority may | ||||||
| 18 | designate a method or methods for persons subject to the tax to | ||||||
| 19 | reimburse themselves for the tax liability arising under the | ||||||
| 20 | ordinance (i) by separately stating the full amount of the tax | ||||||
| 21 | liability as an additional charge to passengers departing the | ||||||
| 22 | airports, (ii) by separately stating one-half of the tax | ||||||
| 23 | liability as an additional charge to both passengers departing | ||||||
| 24 | from and to passengers arriving at the airports, or (iii) by | ||||||
| 25 | some other method determined by the Authority. | ||||||
| 26 | All taxes, penalties, and interest collected under any | ||||||
| |||||||
| |||||||
| 1 | ordinance adopted under this subsection, less any amounts | ||||||
| 2 | determined to be necessary for the payment of refunds and less | ||||||
| 3 | the taxes, penalties, and interest attributable to any | ||||||
| 4 | increase in the rate of tax authorized by Public Act 96-898, | ||||||
| 5 | shall be paid forthwith to the State Treasurer, ex officio, | ||||||
| 6 | for deposit into a trust fund held outside the State Treasury | ||||||
| 7 | and shall be administered by the State Treasurer as provided | ||||||
| 8 | in subsection (g) of this Section. All taxes, penalties, and | ||||||
| 9 | interest attributable to any increase in the rate of tax | ||||||
| 10 | authorized by Public Act 96-898 shall be paid by the State | ||||||
| 11 | Treasurer as follows: 25% for deposit into the Convention | ||||||
| 12 | Center Support Fund, to be used by the Village of Rosemont for | ||||||
| 13 | the repair, maintenance, and improvement of the Donald E. | ||||||
| 14 | Stephens Convention Center and for debt service on debt | ||||||
| 15 | instruments issued for those purposes by the village and 75% | ||||||
| 16 | to the Authority to be used for grants to an organization | ||||||
| 17 | meeting the qualifications set out in Section 5.6 of this Act, | ||||||
| 18 | provided the Metropolitan Pier and Exposition Authority has | ||||||
| 19 | entered into a marketing agreement with such an organization. | ||||||
| 20 | (g) Amounts deposited from the proceeds of taxes imposed | ||||||
| 21 | by the Authority under subsections (b), (c), (d), (e), and (f) | ||||||
| 22 | of this Section and amounts deposited under Section 19 of the | ||||||
| 23 | Illinois Sports Facilities Authority Act shall be held in a | ||||||
| 24 | trust fund outside the State Treasury and, other than the | ||||||
| 25 | amounts transferred into the Tax Compliance and Administration | ||||||
| 26 | Fund under subsections (b), (c), (d), and (e), shall be | ||||||
| |||||||
| |||||||
| 1 | administered by the Treasurer as follows: | ||||||
| 2 | (1) An amount necessary for the payment of refunds | ||||||
| 3 | with respect to those taxes shall be retained in the trust | ||||||
| 4 | fund and used for those payments. | ||||||
| 5 | (2) On July 20 and on the 20th of each month | ||||||
| 6 | thereafter, provided that the amount requested in the | ||||||
| 7 | annual certificate of the Chairman of the Authority filed | ||||||
| 8 | under Section 8.25f of the State Finance Act has been | ||||||
| 9 | appropriated for payment to the Authority, 1/8 of the | ||||||
| 10 | local tax transfer amount, together with any cumulative | ||||||
| 11 | deficiencies in the amounts transferred into the McCormick | ||||||
| 12 | Place Expansion Project Fund under this subparagraph (2) | ||||||
| 13 | during the fiscal year for which the certificate has been | ||||||
| 14 | filed, shall be transferred from the trust fund into the | ||||||
| 15 | McCormick Place Expansion Project Fund in the State | ||||||
| 16 | treasury until 100% of the local tax transfer amount has | ||||||
| 17 | been so transferred. "Local tax transfer amount" shall | ||||||
| 18 | mean the amount requested in the annual certificate, minus | ||||||
| 19 | the reduction amount. "Reduction amount" shall mean $41.7 | ||||||
| 20 | million in fiscal year 2011, $36.7 million in fiscal year | ||||||
| 21 | 2012, $36.7 million in fiscal year 2013, $36.7 million in | ||||||
| 22 | fiscal year 2014, and $31.7 million in each fiscal year | ||||||
| 23 | thereafter until 2035, provided that the reduction amount | ||||||
| 24 | shall be reduced by (i) the amount certified by the | ||||||
| 25 | Authority to the State Comptroller and State Treasurer | ||||||
| 26 | under Section 8.25 of the State Finance Act, as amended, | ||||||
| |||||||
| |||||||
| 1 | with respect to that fiscal year and (ii) in any fiscal | ||||||
| 2 | year in which the amounts deposited in the trust fund | ||||||
| 3 | under this Section exceed $343.3 million, exclusive of | ||||||
| 4 | amounts set aside for refunds and for the reserve account, | ||||||
| 5 | one dollar for each dollar of the deposits in the trust | ||||||
| 6 | fund above $343.3 million with respect to that year, | ||||||
| 7 | exclusive of amounts set aside for refunds and for the | ||||||
| 8 | reserve account. | ||||||
| 9 | (3) On July 20, 2010, the Comptroller shall certify to | ||||||
| 10 | the Governor, the Treasurer, and the Chairman of the | ||||||
| 11 | Authority the 2010 deficiency amount, which means the | ||||||
| 12 | cumulative amount of transfers that were due from the | ||||||
| 13 | trust fund to the McCormick Place Expansion Project Fund | ||||||
| 14 | in fiscal years 2008, 2009, and 2010 under Section 13(g) | ||||||
| 15 | of this Act, as it existed prior to May 27, 2010 (the | ||||||
| 16 | effective date of Public Act 96-898), but not made. On | ||||||
| 17 | July 20, 2011 and on July 20 of each year through July 20, | ||||||
| 18 | 2014, the Treasurer shall calculate for the previous | ||||||
| 19 | fiscal year the surplus revenues in the trust fund and pay | ||||||
| 20 | that amount to the Authority. On July 20, 2015 and on July | ||||||
| 21 | 20 of each year thereafter to and including July 20, 2017, | ||||||
| 22 | as long as bonds and notes issued under Section 13.2 or | ||||||
| 23 | bonds and notes issued to refund those bonds and notes are | ||||||
| 24 | outstanding, the Treasurer shall calculate for the | ||||||
| 25 | previous fiscal year the surplus revenues in the trust | ||||||
| 26 | fund and pay one-half of that amount to the State | ||||||
| |||||||
| |||||||
| 1 | Treasurer for deposit into the General Revenue Fund until | ||||||
| 2 | the 2010 deficiency amount has been paid and shall pay the | ||||||
| 3 | balance of the surplus revenues to the Authority. On July | ||||||
| 4 | 20, 2018 and on July 20 of each year thereafter, the | ||||||
| 5 | Treasurer shall calculate for the previous fiscal year the | ||||||
| 6 | surplus revenues in the trust fund and pay all of such | ||||||
| 7 | surplus revenues to the State Treasurer for deposit into | ||||||
| 8 | the General Revenue Fund until the 2010 deficiency amount | ||||||
| 9 | has been paid. After the 2010 deficiency amount has been | ||||||
| 10 | paid, the Treasurer shall pay the balance of the surplus | ||||||
| 11 | revenues to the Authority. "Surplus revenues" means the | ||||||
| 12 | amounts remaining in the trust fund on June 30 of the | ||||||
| 13 | previous fiscal year (A) after the State Treasurer has set | ||||||
| 14 | aside in the trust fund (i) amounts retained for refunds | ||||||
| 15 | under subparagraph (1) and (ii) any amounts necessary to | ||||||
| 16 | meet the reserve account amount and (B) after the State | ||||||
| 17 | Treasurer has transferred from the trust fund to the | ||||||
| 18 | General Revenue Fund 100% of any post-2010 deficiency | ||||||
| 19 | amount. "Reserve account amount" means $15 million in | ||||||
| 20 | fiscal year 2011 and $30 million in each fiscal year | ||||||
| 21 | thereafter. The reserve account amount shall be set aside | ||||||
| 22 | in the trust fund and used as a reserve to be transferred | ||||||
| 23 | to the McCormick Place Expansion Project Fund in the event | ||||||
| 24 | the proceeds of taxes imposed under this Section 13 are | ||||||
| 25 | not sufficient to fund the transfer required in | ||||||
| 26 | subparagraph (2). "Post-2010 deficiency amount" means any | ||||||
| |||||||
| |||||||
| 1 | deficiency in transfers from the trust fund to the | ||||||
| 2 | McCormick Place Expansion Project Fund with respect to | ||||||
| 3 | fiscal years 2011 and thereafter. It is the intention of | ||||||
| 4 | this subparagraph (3) that no surplus revenues shall be | ||||||
| 5 | paid to the Authority with respect to any year in which a | ||||||
| 6 | post-2010 deficiency amount has not been satisfied by the | ||||||
| 7 | Authority. | ||||||
| 8 | Moneys received by the Authority as surplus revenues may | ||||||
| 9 | be used (i) for the purposes of paying debt service on the | ||||||
| 10 | bonds and notes issued by the Authority, including early | ||||||
| 11 | redemption of those bonds or notes, (ii) for the purposes of | ||||||
| 12 | repair, replacement, and improvement of the grounds, | ||||||
| 13 | buildings, and facilities of the Authority, and (iii) for the | ||||||
| 14 | corporate purposes of the Authority in fiscal years 2011 | ||||||
| 15 | through 2015 in an amount not to exceed $20,000,000 annually | ||||||
| 16 | or $80,000,000 total, which amount shall be reduced $0.75 for | ||||||
| 17 | each dollar of the receipts of the Authority in that year from | ||||||
| 18 | any contract entered into with respect to naming rights at | ||||||
| 19 | McCormick Place under Section 5(m) of this Act. When bonds and | ||||||
| 20 | notes issued under Section 13.2, or bonds or notes issued to | ||||||
| 21 | refund those bonds and notes, are no longer outstanding, the | ||||||
| 22 | balance in the trust fund shall be paid to the Authority. | ||||||
| 23 | (h) The ordinances imposing the taxes authorized by this | ||||||
| 24 | Section shall be repealed when bonds and notes issued under | ||||||
| 25 | Section 13.2 or bonds and notes issued to refund those bonds | ||||||
| 26 | and notes are no longer outstanding. | ||||||
| |||||||
| |||||||
| 1 | (Source: P.A. 100-23, Article 5, Section 5-35, eff. 7-6-17; | ||||||
| 2 | 100-23, Article 35, Section 35-25, eff. 7-6-17; 100-587, eff. | ||||||
| 3 | 6-4-18; 100-863, eff. 8-14-18; 101-636, eff. 6-10-20.)
| ||||||
| 4 | Section 65-20. The Illinois Sports Facilities Authority | ||||||
| 5 | Act is amended by changing Section 19 as follows:
| ||||||
| 6 | (70 ILCS 3205/19) (from Ch. 85, par. 6019) | ||||||
| 7 | Sec. 19. Tax. The Authority may impose an occupation tax | ||||||
| 8 | upon all hotel operators persons engaged in the City of | ||||||
| 9 | Chicago in the business of renting, leasing or letting rooms | ||||||
| 10 | in a hotel, as defined in The Hotel Operators' Occupation Tax | ||||||
| 11 | Act, at a rate not to exceed 2% of the gross rental receipts | ||||||
| 12 | from engaging in business as a hotel operator the renting, | ||||||
| 13 | leasing or letting of hotel rooms located within the City of | ||||||
| 14 | Chicago, excluding, however, from gross rental receipts, the | ||||||
| 15 | proceeds of such renting, leasing or letting of hotel rooms to | ||||||
| 16 | permanent residents of a that hotel and proceeds from the tax | ||||||
| 17 | imposed under subsection (c) of Section 13 of the Metropolitan | ||||||
| 18 | Pier and Exposition Authority Act. | ||||||
| 19 | The tax imposed by the Authority pursuant to this Section | ||||||
| 20 | and all civil penalties that may be assessed as an incident | ||||||
| 21 | thereof shall be collected and enforced by the State | ||||||
| 22 | Department of Revenue. The certificate of registration which | ||||||
| 23 | is issued by the Department to a lessor under The Hotel | ||||||
| 24 | Operators' Occupation Tax Act shall permit such registrant to | ||||||
| |||||||
| |||||||
| 1 | engage in a business which is taxable under any ordinance or | ||||||
| 2 | resolution enacted pursuant to this Section without | ||||||
| 3 | registering separately with the Department under such | ||||||
| 4 | ordinance or resolution or under this Section. The Department | ||||||
| 5 | shall have full power to administer and enforce this Section; | ||||||
| 6 | to collect all taxes and penalties due hereunder; to dispose | ||||||
| 7 | of taxes and penalties so collected in the manner provided in | ||||||
| 8 | this Section, and to determine all rights to credit memoranda, | ||||||
| 9 | arising on account of the erroneous payment of tax or penalty | ||||||
| 10 | hereunder. In the administration of, and compliance with, this | ||||||
| 11 | Section, the Department and persons who are subject to this | ||||||
| 12 | Section shall have the same rights, remedies, privileges, | ||||||
| 13 | immunities, powers and duties, and be subject to the same | ||||||
| 14 | conditions, restrictions, limitations, penalties and | ||||||
| 15 | definitions of terms, and employ the same modes of procedure, | ||||||
| 16 | as are prescribed in The Hotel Operators' Occupation Tax Act | ||||||
| 17 | (except where that Act is inconsistent herewith), as the same | ||||||
| 18 | is now or may hereafter be amended, as fully as if the | ||||||
| 19 | provisions contained in The Hotel Operators' Occupation Tax | ||||||
| 20 | Act were set forth herein. | ||||||
| 21 | Whenever the Department determines that a refund should be | ||||||
| 22 | made under this Section to a claimant instead of issuing a | ||||||
| 23 | credit memorandum, the Department shall notify the State | ||||||
| 24 | Comptroller, who shall cause the warrant to be drawn for the | ||||||
| 25 | amount specified, and to the person named, in such | ||||||
| 26 | notification from the Department. Such refund shall be paid by | ||||||
| |||||||
| |||||||
| 1 | the State Treasurer out of the amounts held by the State | ||||||
| 2 | Treasurer as trustee for the Authority. | ||||||
| 3 | Persons subject to any tax imposed pursuant to authority | ||||||
| 4 | granted by this Section may reimburse themselves for their tax | ||||||
| 5 | liability for such tax by separately stating such tax as an | ||||||
| 6 | additional charge, which charge may be stated in combination, | ||||||
| 7 | in a single amount, with State tax imposed under The Hotel | ||||||
| 8 | Operators' Occupation Tax Act, the municipal tax imposed under | ||||||
| 9 | Section 8-3-13 of the Illinois Municipal Code, and the tax | ||||||
| 10 | imposed under Section 13 of the Metropolitan Pier and | ||||||
| 11 | Exposition Authority Act. | ||||||
| 12 | The Department shall forthwith pay over to the State | ||||||
| 13 | Treasurer, ex-officio, as trustee for the Authority, all taxes | ||||||
| 14 | and penalties collected hereunder for deposit in a trust fund | ||||||
| 15 | outside the State Treasury. On or before the 25th day of each | ||||||
| 16 | calendar month, the Department shall certify to the | ||||||
| 17 | Comptroller the amount to be paid to or on behalf of the | ||||||
| 18 | Authority from amounts collected hereunder by the Department, | ||||||
| 19 | and deposited into such trust fund during the second preceding | ||||||
| 20 | calendar month. The amount to be paid to or on behalf of the | ||||||
| 21 | Authority shall be the amount (not including credit memoranda) | ||||||
| 22 | collected hereunder during such second preceding calendar | ||||||
| 23 | month by the Department, less an amount equal to the amount of | ||||||
| 24 | refunds authorized during such second preceding calendar month | ||||||
| 25 | by the Department on behalf of the Authority, and less 4% of | ||||||
| 26 | such balance, which sum shall be retained by the State | ||||||
| |||||||
| |||||||
| 1 | Treasurer to cover the costs incurred by the Department in | ||||||
| 2 | administering and enforcing the provisions of this Section, as | ||||||
| 3 | provided herein. Each such monthly certification by the | ||||||
| 4 | Department shall also certify to the Comptroller the amount to | ||||||
| 5 | be so retained by the State Treasurer for payment into the | ||||||
| 6 | General Revenue Fund of the State Treasury. | ||||||
| 7 | Each monthly certification by the Department shall | ||||||
| 8 | certify, of the amount paid to or on behalf of the Authority, | ||||||
| 9 | (i) the portion to be paid to the Authority, (ii) the portion | ||||||
| 10 | to be paid into the General Revenue Fund of the State Treasury | ||||||
| 11 | on behalf of the Authority as repayment of amounts advanced to | ||||||
| 12 | the Authority pursuant to appropriation from the Illinois | ||||||
| 13 | Sports Facilities Fund. | ||||||
| 14 | With respect to each State fiscal year, of the total | ||||||
| 15 | amount to be paid to or on behalf of the Authority, the | ||||||
| 16 | Department shall certify that payments shall first be made | ||||||
| 17 | directly to the Authority in an amount equal to any difference | ||||||
| 18 | between the annual amount certified by the Chairman of the | ||||||
| 19 | Authority pursuant to Section 8.25-4 of the State Finance Act | ||||||
| 20 | and the amount appropriated to the Authority from the Illinois | ||||||
| 21 | Sports Facilities Fund. Next, the Department shall certify | ||||||
| 22 | that payment shall be made into the General Revenue Fund of the | ||||||
| 23 | State Treasury in an amount equal to the difference between | ||||||
| 24 | (i) the lesser of (x) the amount appropriated from the | ||||||
| 25 | Illinois Sports Facilities Fund to the Authority and (y) the | ||||||
| 26 | annual amount certified by the Chairman of the Authority | ||||||
| |||||||
| |||||||
| 1 | pursuant to Section 8.25-4 of the State Finance Act and (ii) | ||||||
| 2 | $10,000,000. The Department shall certify that all additional | ||||||
| 3 | amounts shall be paid to the Authority and used for its | ||||||
| 4 | corporate purposes. | ||||||
| 5 | Within 10 days after receipt, by the Comptroller, of the | ||||||
| 6 | Department's monthly certification of amounts to be paid to or | ||||||
| 7 | on behalf of the Authority and amounts to be paid into the | ||||||
| 8 | General Revenue Fund, the Comptroller shall cause the warrants | ||||||
| 9 | to be drawn for the respective amounts in accordance with the | ||||||
| 10 | directions contained in such certification. | ||||||
| 11 | Amounts collected by the Department and paid to the | ||||||
| 12 | Authority pursuant to this Section shall be used for the | ||||||
| 13 | corporate purposes of the Authority. On June 15, 1992 and on | ||||||
| 14 | each June 15 thereafter, the Authority shall repay to the | ||||||
| 15 | State Treasurer all amounts paid to it under this Section and | ||||||
| 16 | otherwise remaining available to the Authority after providing | ||||||
| 17 | for (i) payment of principal and interest on, and other | ||||||
| 18 | payments related to, its obligations issued or to be issued | ||||||
| 19 | under Section 13 of the Act, including any deposits required | ||||||
| 20 | to reserve funds created under any indenture or resolution | ||||||
| 21 | authorizing issuance of the obligations and payments to | ||||||
| 22 | providers of credit enhancement, (ii) payment of obligations | ||||||
| 23 | under the provisions of any management agreement with respect | ||||||
| 24 | to a facility or facilities owned by the Authority or of any | ||||||
| 25 | assistance agreement with respect to any facility for which | ||||||
| 26 | financial assistance is provided under this Act, and payment | ||||||
| |||||||
| |||||||
| 1 | of other capital and operating expenses of the Authority, | ||||||
| 2 | including any deposits required to reserve funds created for | ||||||
| 3 | repair and replacement of capital assets and to meet the | ||||||
| 4 | obligations of the Authority under any management agreement or | ||||||
| 5 | assistance agreement. Amounts repaid by the Authority to the | ||||||
| 6 | State Treasurer hereunder shall be treated as repayment of | ||||||
| 7 | amounts deposited into the Illinois Sports Facilities Fund and | ||||||
| 8 | credited to the Subsidy Account and used for the corporate | ||||||
| 9 | purposes of the Authority. The State Treasurer shall deposit | ||||||
| 10 | $5,000,000 of the amount received into the General Revenue | ||||||
| 11 | Fund; thereafter, at the beginning of each fiscal year the | ||||||
| 12 | State Treasurer shall certify to the State Comptroller for all | ||||||
| 13 | prior fiscal years the cumulative amount of any deficiencies | ||||||
| 14 | in repayments to the City of Chicago of amounts in the Local | ||||||
| 15 | Government Distributive Fund that would otherwise have been | ||||||
| 16 | allocated to the City of Chicago under the State Revenue | ||||||
| 17 | Sharing Act but instead were paid into the General Revenue | ||||||
| 18 | Fund under Section 6 of the Hotel Operators' Occupation Tax | ||||||
| 19 | Act and that have not been reimbursed, and the Comptroller | ||||||
| 20 | shall, during the fiscal year at the beginning of which the | ||||||
| 21 | certification was made, cause warrants to be drawn from the | ||||||
| 22 | amount received for the repayment of that cumulative amount to | ||||||
| 23 | the City of Chicago until that cumulative amount has been | ||||||
| 24 | fully reimbursed; thereafter, the State Treasurer shall | ||||||
| 25 | deposit the balance of the amount received into the trust fund | ||||||
| 26 | established outside the State Treasury under subsection (g) of | ||||||
| |||||||
| |||||||
| 1 | Section 13 of the Metropolitan Pier and Exposition Authority | ||||||
| 2 | Act. | ||||||
| 3 | Nothing in this Section shall be construed to authorize | ||||||
| 4 | the Authority to impose a tax upon the privilege of engaging in | ||||||
| 5 | any business which under the constitution of the United States | ||||||
| 6 | may not be made the subject of taxation by this State. | ||||||
| 7 | An ordinance or resolution imposing or discontinuing a tax | ||||||
| 8 | hereunder or effecting a change in the rate thereof shall be | ||||||
| 9 | effective on the first day of the second calendar month next | ||||||
| 10 | following the month in which the ordinance or resolution is | ||||||
| 11 | passed. | ||||||
| 12 | If the Authority levies a tax authorized by this Section | ||||||
| 13 | it shall transmit to the Department of Revenue not later than 5 | ||||||
| 14 | days after the adoption of the ordinance or resolution a | ||||||
| 15 | certified copy of the ordinance or resolution imposing such | ||||||
| 16 | tax whereupon the Department of Revenue shall proceed to | ||||||
| 17 | administer and enforce this Section on behalf of the | ||||||
| 18 | Authority. Upon a change in rate of a tax levied hereunder, or | ||||||
| 19 | upon the discontinuance of the tax, the Authority shall not | ||||||
| 20 | later than 5 days after the effective date of the ordinance or | ||||||
| 21 | resolution discontinuing the tax or effecting a change in rate | ||||||
| 22 | transmit to the Department of Revenue a certified copy of the | ||||||
| 23 | ordinance or resolution effecting such change or | ||||||
| 24 | discontinuance. | ||||||
| 25 | (Source: P.A. 91-935, eff. 6-1-01.)
| ||||||
| |||||||
| |||||||
| 1 | ARTICLE 70. | ||||||
| 2 | Section 70-5. The Motor Fuel Tax Law is amended by | ||||||
| 3 | changing Section 2a as follows:
| ||||||
| 4 | (35 ILCS 505/2a) (from Ch. 120, par. 418a) | ||||||
| 5 | Sec. 2a. Except as hereinafter provided, on and after | ||||||
| 6 | January 1, 1990 and before January 1, 2030 January 1, 2025, a | ||||||
| 7 | tax of three-tenths of a cent per gallon is imposed upon the | ||||||
| 8 | privilege of being a receiver in this State of fuel for sale or | ||||||
| 9 | use. Beginning January 1, 2021, this tax is not imposed on | ||||||
| 10 | sales of aviation fuel for so long as the revenue use | ||||||
| 11 | requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are | ||||||
| 12 | binding on the State. | ||||||
| 13 | The tax shall be paid by the receiver in this State who | ||||||
| 14 | first sells or uses fuel. In the case of a sale, the tax shall | ||||||
| 15 | be stated as a separate item on the invoice. | ||||||
| 16 | For the purpose of the tax imposed by this Section, being a | ||||||
| 17 | receiver of "motor fuel" as defined by Section 1.1 of this Act, | ||||||
| 18 | and aviation fuels, home heating oil and kerosene, but | ||||||
| 19 | excluding liquified petroleum gases, is subject to tax without | ||||||
| 20 | regard to whether the fuel is intended to be used for operation | ||||||
| 21 | of motor vehicles on the public highways and waters. However, | ||||||
| 22 | no such tax shall be imposed upon the importation or receipt of | ||||||
| 23 | aviation fuels and kerosene at airports with over 300,000 | ||||||
| 24 | operations per year, for years prior to 1991, and over 170,000 | ||||||
| |||||||
| |||||||
| 1 | operations per year beginning in 1991, located in a city of | ||||||
| 2 | more than 1,000,000 inhabitants for sale to or use by holders | ||||||
| 3 | of certificates of public convenience and necessity or foreign | ||||||
| 4 | air carrier permits, issued by the United States Department of | ||||||
| 5 | Transportation, and their air carrier affiliates, or upon the | ||||||
| 6 | importation or receipt of aviation fuels and kerosene at | ||||||
| 7 | facilities owned or leased by those certificate or permit | ||||||
| 8 | holders and used in their activities at an airport described | ||||||
| 9 | above. In addition, no such tax shall be imposed upon the | ||||||
| 10 | importation or receipt of diesel fuel or liquefied natural gas | ||||||
| 11 | sold to or used by a rail carrier registered pursuant to | ||||||
| 12 | Section 18c-7201 of the Illinois Vehicle Code or otherwise | ||||||
| 13 | recognized by the Illinois Commerce Commission as a rail | ||||||
| 14 | carrier, to the extent used directly in railroad operations. | ||||||
| 15 | In addition, no such tax shall be imposed when the sale is made | ||||||
| 16 | with delivery to a purchaser outside this State or when the | ||||||
| 17 | sale is made to a person holding a valid license as a receiver. | ||||||
| 18 | In addition, no tax shall be imposed upon diesel fuel or | ||||||
| 19 | liquefied natural gas consumed or used in the operation of | ||||||
| 20 | ships, barges, or vessels, that are used primarily in or for | ||||||
| 21 | the transportation of property in interstate commerce for hire | ||||||
| 22 | on rivers bordering on this State, if the diesel fuel or | ||||||
| 23 | liquefied natural gas is delivered by a licensed receiver to | ||||||
| 24 | the purchaser's barge, ship, or vessel while it is afloat upon | ||||||
| 25 | that bordering river. A specific notation thereof shall be | ||||||
| 26 | made on the invoices or sales slips covering each sale. | ||||||
| |||||||
| |||||||
| 1 | (Source: P.A. 100-9, eff. 7-1-17; 101-604, eff. 12-13-19.)
| ||||||
| 2 | Section 70-10. The Environmental Impact Fee Law is amended | ||||||
| 3 | by changing Section 390 as follows:
| ||||||
| 4 | (415 ILCS 125/390) | ||||||
| 5 | (Section scheduled to be repealed on January 1, 2025) | ||||||
| 6 | Sec. 390. Repeal. This Article is repealed on January 1, | ||||||
| 7 | 2030 January 1, 2025. | ||||||
| 8 | (Source: P.A. 96-161, eff. 8-10-09.)
| ||||||
| 9 | ARTICLE 75. | ||||||
| 10 | Section 75-5. The Use Tax Act is amended by changing | ||||||
| 11 | Sections 2, 3, 3-5, 3-10, 3-55, and 9 and by adding Section | ||||||
| 12 | 1.05 as follows:
| ||||||
| 13 | (35 ILCS 105/1.05 new) | ||||||
| 14 | Sec. 1.05. Legislative intent; leases. It is the intent of | ||||||
| 15 | the General Assembly in enacting this amendatory Act of the | ||||||
| 16 | 103rd General Assembly to apply the tax imposed under this | ||||||
| 17 | Act, except as otherwise provided in this Act, to the | ||||||
| 18 | privilege of using in this State tangible personal property, | ||||||
| 19 | other than motor vehicles, watercraft, aircraft, and | ||||||
| 20 | semitrailers, as defined in Section 1-187 of the Illinois | ||||||
| 21 | Vehicle Code, that are required to be registered with an | ||||||
| |||||||
| |||||||
| 1 | agency of this State, leased at retail from a retailer, for | ||||||
| 2 | leases in effect, entered into, or renewed on or after January | ||||||
| 3 | 1, 2025.
| ||||||
| 4 | (35 ILCS 105/2) (from Ch. 120, par. 439.2) | ||||||
| 5 | Sec. 2. Definitions. | ||||||
| 6 | "Use" means the exercise by any person of any right or | ||||||
| 7 | power over tangible personal property incident to the | ||||||
| 8 | ownership of that property, or, on and after January 1, 2025, | ||||||
| 9 | incident to the possession or control of, the right to possess | ||||||
| 10 | or control, or a license to use that property through a lease, | ||||||
| 11 | except that it does not include the sale of such property in | ||||||
| 12 | any form as tangible personal property in the regular course | ||||||
| 13 | of business to the extent that such property is not first | ||||||
| 14 | subjected to a use for which it was purchased, and does not | ||||||
| 15 | include the use of such property by its owner for | ||||||
| 16 | demonstration purposes: Provided that the property purchased | ||||||
| 17 | is deemed to be purchased for the purpose of resale, despite | ||||||
| 18 | first being used, to the extent to which it is resold as an | ||||||
| 19 | ingredient of an intentionally produced product or by-product | ||||||
| 20 | of manufacturing. "Use" does not mean the demonstration use or | ||||||
| 21 | interim use of tangible personal property by a retailer before | ||||||
| 22 | he sells that tangible personal property. On and after January | ||||||
| 23 | 1, 2025, the lease of tangible personal property to a lessee by | ||||||
| 24 | a retailer who is subject to tax on lease receipts under this | ||||||
| 25 | amendatory Act of the 103rd General Assembly does not qualify | ||||||
| |||||||
| |||||||
| 1 | as demonstration use or interim use of that property. For | ||||||
| 2 | watercraft or aircraft, if the period of demonstration use or | ||||||
| 3 | interim use by the retailer exceeds 18 months, the retailer | ||||||
| 4 | shall pay on the retailers' original cost price the tax | ||||||
| 5 | imposed by this Act, and no credit for that tax is permitted if | ||||||
| 6 | the watercraft or aircraft is subsequently sold by the | ||||||
| 7 | retailer. "Use" does not mean the physical incorporation of | ||||||
| 8 | tangible personal property, to the extent not first subjected | ||||||
| 9 | to a use for which it was purchased, as an ingredient or | ||||||
| 10 | constituent, into other tangible personal property (a) which | ||||||
| 11 | is sold in the regular course of business or (b) which the | ||||||
| 12 | person incorporating such ingredient or constituent therein | ||||||
| 13 | has undertaken at the time of such purchase to cause to be | ||||||
| 14 | transported in interstate commerce to destinations outside the | ||||||
| 15 | State of Illinois: Provided that the property purchased is | ||||||
| 16 | deemed to be purchased for the purpose of resale, despite | ||||||
| 17 | first being used, to the extent to which it is resold as an | ||||||
| 18 | ingredient of an intentionally produced product or by-product | ||||||
| 19 | of manufacturing. | ||||||
| 20 | "Lease" means a transfer of the possession or control of, | ||||||
| 21 | the right to possess or control, or a license to use, but not | ||||||
| 22 | title to, tangible personal property for a fixed or | ||||||
| 23 | indeterminate term for consideration, regardless of the name | ||||||
| 24 | by which the transaction is called. "Lease" does not include a | ||||||
| 25 | lease entered into merely as a security agreement that does | ||||||
| 26 | not involve a transfer of possession or control from the | ||||||
| |||||||
| |||||||
| 1 | lessor to the lessee. | ||||||
| 2 | On and after January 1, 2025, the term "sale", when used in | ||||||
| 3 | this Act, includes a lease. | ||||||
| 4 | "Watercraft" means a Class 2, Class 3, or Class 4 | ||||||
| 5 | watercraft as defined in Section 3-2 of the Boat Registration | ||||||
| 6 | and Safety Act, a personal watercraft, or any boat equipped | ||||||
| 7 | with an inboard motor. | ||||||
| 8 | "Purchase at retail" means the acquisition of the | ||||||
| 9 | ownership of, the or title to, the possession or control of, | ||||||
| 10 | the right to possess or control, or a license to use, tangible | ||||||
| 11 | personal property through a sale at retail. | ||||||
| 12 | "Purchaser" means anyone who, through a sale at retail, | ||||||
| 13 | acquires the ownership of, the title to, the possession or | ||||||
| 14 | control of, the right to possess or control, or a license to | ||||||
| 15 | use, tangible personal property for a valuable consideration. | ||||||
| 16 | "Sale at retail" means any transfer of the ownership of or | ||||||
| 17 | title to tangible personal property to a purchaser, for the | ||||||
| 18 | purpose of use, and not for the purpose of resale in any form | ||||||
| 19 | as tangible personal property to the extent not first | ||||||
| 20 | subjected to a use for which it was purchased, for a valuable | ||||||
| 21 | consideration: Provided that the property purchased is deemed | ||||||
| 22 | to be purchased for the purpose of resale, despite first being | ||||||
| 23 | used, to the extent to which it is resold as an ingredient of | ||||||
| 24 | an intentionally produced product or by-product of | ||||||
| 25 | manufacturing. For this purpose, slag produced as an incident | ||||||
| 26 | to manufacturing pig iron or steel and sold is considered to be | ||||||
| |||||||
| |||||||
| 1 | an intentionally produced by-product of manufacturing. "Sale | ||||||
| 2 | at retail" includes any such transfer made for resale unless | ||||||
| 3 | made in compliance with Section 2c of the Retailers' | ||||||
| 4 | Occupation Tax Act, as incorporated by reference into Section | ||||||
| 5 | 12 of this Act. Transactions whereby the possession of the | ||||||
| 6 | property is transferred but the seller retains the title as | ||||||
| 7 | security for payment of the selling price are sales. | ||||||
| 8 | "Sale at retail" shall also be construed to include any | ||||||
| 9 | Illinois florist's sales transaction in which the purchase | ||||||
| 10 | order is received in Illinois by a florist and the sale is for | ||||||
| 11 | use or consumption, but the Illinois florist has a florist in | ||||||
| 12 | another state deliver the property to the purchaser or the | ||||||
| 13 | purchaser's donee in such other state. | ||||||
| 14 | Nonreusable tangible personal property that is used by | ||||||
| 15 | persons engaged in the business of operating a restaurant, | ||||||
| 16 | cafeteria, or drive-in is a sale for resale when it is | ||||||
| 17 | transferred to customers in the ordinary course of business as | ||||||
| 18 | part of the sale of food or beverages and is used to deliver, | ||||||
| 19 | package, or consume food or beverages, regardless of where | ||||||
| 20 | consumption of the food or beverages occurs. Examples of those | ||||||
| 21 | items include, but are not limited to nonreusable, paper and | ||||||
| 22 | plastic cups, plates, baskets, boxes, sleeves, buckets or | ||||||
| 23 | other containers, utensils, straws, placemats, napkins, doggie | ||||||
| 24 | bags, and wrapping or packaging materials that are transferred | ||||||
| 25 | to customers as part of the sale of food or beverages in the | ||||||
| 26 | ordinary course of business. | ||||||
| |||||||
| |||||||
| 1 | The purchase, employment and transfer of such tangible | ||||||
| 2 | personal property as newsprint and ink for the primary purpose | ||||||
| 3 | of conveying news (with or without other information) is not a | ||||||
| 4 | purchase, use or sale of tangible personal property. | ||||||
| 5 | "Selling price" means the consideration for a sale valued | ||||||
| 6 | in money whether received in money or otherwise, including | ||||||
| 7 | cash, credits, property other than as hereinafter provided, | ||||||
| 8 | and services, but, prior to January 1, 2020 and beginning | ||||||
| 9 | again on January 1, 2022, not including the value of or credit | ||||||
| 10 | given for traded-in tangible personal property where the item | ||||||
| 11 | that is traded-in is of like kind and character as that which | ||||||
| 12 | is being sold; beginning January 1, 2020 and until January 1, | ||||||
| 13 | 2022, "selling price" includes the portion of the value of or | ||||||
| 14 | credit given for traded-in motor vehicles of the First | ||||||
| 15 | Division as defined in Section 1-146 of the Illinois Vehicle | ||||||
| 16 | Code of like kind and character as that which is being sold | ||||||
| 17 | that exceeds $10,000. "Selling price" shall be determined | ||||||
| 18 | without any deduction on account of the cost of the property | ||||||
| 19 | sold, the cost of materials used, labor or service cost or any | ||||||
| 20 | other expense whatsoever, but does not include interest or | ||||||
| 21 | finance charges which appear as separate items on the bill of | ||||||
| 22 | sale or sales contract nor charges that are added to prices by | ||||||
| 23 | sellers on account of the seller's tax liability under the | ||||||
| 24 | Retailers' Occupation Tax Act, or on account of the seller's | ||||||
| 25 | duty to collect, from the purchaser, the tax that is imposed by | ||||||
| 26 | this Act, or, except as otherwise provided with respect to any | ||||||
| |||||||
| |||||||
| 1 | cigarette tax imposed by a home rule unit, on account of the | ||||||
| 2 | seller's tax liability under any local occupation tax | ||||||
| 3 | administered by the Department, or, except as otherwise | ||||||
| 4 | provided with respect to any cigarette tax imposed by a home | ||||||
| 5 | rule unit on account of the seller's duty to collect, from the | ||||||
| 6 | purchasers, the tax that is imposed under any local use tax | ||||||
| 7 | administered by the Department. Effective December 1, 1985, | ||||||
| 8 | "selling price" shall include charges that are added to prices | ||||||
| 9 | by sellers on account of the seller's tax liability under the | ||||||
| 10 | Cigarette Tax Act, on account of the seller's duty to collect, | ||||||
| 11 | from the purchaser, the tax imposed under the Cigarette Use | ||||||
| 12 | Tax Act, and on account of the seller's duty to collect, from | ||||||
| 13 | the purchaser, any cigarette tax imposed by a home rule unit. | ||||||
| 14 | The provisions of this paragraph, which provides only for | ||||||
| 15 | an alternative meaning of "selling price" with respect to the | ||||||
| 16 | sale of certain motor vehicles incident to the contemporaneous | ||||||
| 17 | lease of those motor vehicles, continue in effect and are not | ||||||
| 18 | changed by the tax on leases implemented by this amendatory | ||||||
| 19 | Act of the 103rd General Assembly. Notwithstanding any law to | ||||||
| 20 | the contrary, for any motor vehicle, as defined in Section | ||||||
| 21 | 1-146 of the Vehicle Code, that is sold on or after January 1, | ||||||
| 22 | 2015 for the purpose of leasing the vehicle for a defined | ||||||
| 23 | period that is longer than one year and (1) is a motor vehicle | ||||||
| 24 | of the second division that: (A) is a self-contained motor | ||||||
| 25 | vehicle designed or permanently converted to provide living | ||||||
| 26 | quarters for recreational, camping, or travel use, with direct | ||||||
| |||||||
| |||||||
| 1 | walk through access to the living quarters from the driver's | ||||||
| 2 | seat; (B) is of the van configuration designed for the | ||||||
| 3 | transportation of not less than 7 nor more than 16 passengers; | ||||||
| 4 | or (C) has a gross vehicle weight rating of 8,000 pounds or | ||||||
| 5 | less or (2) is a motor vehicle of the first division, "selling | ||||||
| 6 | price" or "amount of sale" means the consideration received by | ||||||
| 7 | the lessor pursuant to the lease contract, including amounts | ||||||
| 8 | due at lease signing and all monthly or other regular payments | ||||||
| 9 | charged over the term of the lease. Also included in the | ||||||
| 10 | selling price is any amount received by the lessor from the | ||||||
| 11 | lessee for the leased vehicle that is not calculated at the | ||||||
| 12 | time the lease is executed, including, but not limited to, | ||||||
| 13 | excess mileage charges and charges for excess wear and tear. | ||||||
| 14 | For sales that occur in Illinois, with respect to any amount | ||||||
| 15 | received by the lessor from the lessee for the leased vehicle | ||||||
| 16 | that is not calculated at the time the lease is executed, the | ||||||
| 17 | lessor who purchased the motor vehicle does not incur the tax | ||||||
| 18 | imposed by the Use Tax Act on those amounts, and the retailer | ||||||
| 19 | who makes the retail sale of the motor vehicle to the lessor is | ||||||
| 20 | not required to collect the tax imposed by this Act or to pay | ||||||
| 21 | the tax imposed by the Retailers' Occupation Tax Act on those | ||||||
| 22 | amounts. However, the lessor who purchased the motor vehicle | ||||||
| 23 | assumes the liability for reporting and paying the tax on | ||||||
| 24 | those amounts directly to the Department in the same form | ||||||
| 25 | (Illinois Retailers' Occupation Tax, and local retailers' | ||||||
| 26 | occupation taxes, if applicable) in which the retailer would | ||||||
| |||||||
| |||||||
| 1 | have reported and paid such tax if the retailer had accounted | ||||||
| 2 | for the tax to the Department. For amounts received by the | ||||||
| 3 | lessor from the lessee that are not calculated at the time the | ||||||
| 4 | lease is executed, the lessor must file the return and pay the | ||||||
| 5 | tax to the Department by the due date otherwise required by | ||||||
| 6 | this Act for returns other than transaction returns. If the | ||||||
| 7 | retailer is entitled under this Act to a discount for | ||||||
| 8 | collecting and remitting the tax imposed under this Act to the | ||||||
| 9 | Department with respect to the sale of the motor vehicle to the | ||||||
| 10 | lessor, then the right to the discount provided in this Act | ||||||
| 11 | shall be transferred to the lessor with respect to the tax paid | ||||||
| 12 | by the lessor for any amount received by the lessor from the | ||||||
| 13 | lessee for the leased vehicle that is not calculated at the | ||||||
| 14 | time the lease is executed; provided that the discount is only | ||||||
| 15 | allowed if the return is timely filed and for amounts timely | ||||||
| 16 | paid. The "selling price" of a motor vehicle that is sold on or | ||||||
| 17 | after January 1, 2015 for the purpose of leasing for a defined | ||||||
| 18 | period of longer than one year shall not be reduced by the | ||||||
| 19 | value of or credit given for traded-in tangible personal | ||||||
| 20 | property owned by the lessor, nor shall it be reduced by the | ||||||
| 21 | value of or credit given for traded-in tangible personal | ||||||
| 22 | property owned by the lessee, regardless of whether the | ||||||
| 23 | trade-in value thereof is assigned by the lessee to the | ||||||
| 24 | lessor. In the case of a motor vehicle that is sold for the | ||||||
| 25 | purpose of leasing for a defined period of longer than one | ||||||
| 26 | year, the sale occurs at the time of the delivery of the | ||||||
| |||||||
| |||||||
| 1 | vehicle, regardless of the due date of any lease payments. A | ||||||
| 2 | lessor who incurs a Retailers' Occupation Tax liability on the | ||||||
| 3 | sale of a motor vehicle coming off lease may not take a credit | ||||||
| 4 | against that liability for the Use Tax the lessor paid upon the | ||||||
| 5 | purchase of the motor vehicle (or for any tax the lessor paid | ||||||
| 6 | with respect to any amount received by the lessor from the | ||||||
| 7 | lessee for the leased vehicle that was not calculated at the | ||||||
| 8 | time the lease was executed) if the selling price of the motor | ||||||
| 9 | vehicle at the time of purchase was calculated using the | ||||||
| 10 | definition of "selling price" as defined in this paragraph. | ||||||
| 11 | Notwithstanding any other provision of this Act to the | ||||||
| 12 | contrary, lessors shall file all returns and make all payments | ||||||
| 13 | required under this paragraph to the Department by electronic | ||||||
| 14 | means in the manner and form as required by the Department. | ||||||
| 15 | This paragraph does not apply to leases of motor vehicles for | ||||||
| 16 | which, at the time the lease is entered into, the term of the | ||||||
| 17 | lease is not a defined period, including leases with a defined | ||||||
| 18 | initial period with the option to continue the lease on a | ||||||
| 19 | month-to-month or other basis beyond the initial defined | ||||||
| 20 | period. | ||||||
| 21 | The phrase "like kind and character" shall be liberally | ||||||
| 22 | construed (including but not limited to any form of motor | ||||||
| 23 | vehicle for any form of motor vehicle, or any kind of farm or | ||||||
| 24 | agricultural implement for any other kind of farm or | ||||||
| 25 | agricultural implement), while not including a kind of item | ||||||
| 26 | which, if sold at retail by that retailer, would be exempt from | ||||||
| |||||||
| |||||||
| 1 | retailers' occupation tax and use tax as an isolated or | ||||||
| 2 | occasional sale. | ||||||
| 3 | "Department" means the Department of Revenue. | ||||||
| 4 | "Person" means any natural individual, firm, partnership, | ||||||
| 5 | association, joint stock company, joint adventure, public or | ||||||
| 6 | private corporation, limited liability company, or a receiver, | ||||||
| 7 | executor, trustee, guardian or other representative appointed | ||||||
| 8 | by order of any court. | ||||||
| 9 | "Retailer" means and includes every person engaged in the | ||||||
| 10 | business of making sales, including, on and after January 1, | ||||||
| 11 | 2025, leases, at retail as defined in this Section. With | ||||||
| 12 | respect to leases, a "retailer" also means a "lessor", except | ||||||
| 13 | as otherwise provided in this Act. | ||||||
| 14 | A person who holds himself or herself out as being engaged | ||||||
| 15 | (or who habitually engages) in selling tangible personal | ||||||
| 16 | property at retail is a retailer hereunder with respect to | ||||||
| 17 | such sales (and not primarily in a service occupation) | ||||||
| 18 | notwithstanding the fact that such person designs and produces | ||||||
| 19 | such tangible personal property on special order for the | ||||||
| 20 | purchaser and in such a way as to render the property of value | ||||||
| 21 | only to such purchaser, if such tangible personal property so | ||||||
| 22 | produced on special order serves substantially the same | ||||||
| 23 | function as stock or standard items of tangible personal | ||||||
| 24 | property that are sold at retail. | ||||||
| 25 | A person whose activities are organized and conducted | ||||||
| 26 | primarily as a not-for-profit service enterprise, and who | ||||||
| |||||||
| |||||||
| 1 | engages in selling tangible personal property at retail | ||||||
| 2 | (whether to the public or merely to members and their guests) | ||||||
| 3 | is a retailer with respect to such transactions, excepting | ||||||
| 4 | only a person organized and operated exclusively for | ||||||
| 5 | charitable, religious or educational purposes either (1), to | ||||||
| 6 | the extent of sales by such person to its members, students, | ||||||
| 7 | patients or inmates of tangible personal property to be used | ||||||
| 8 | primarily for the purposes of such person, or (2), to the | ||||||
| 9 | extent of sales by such person of tangible personal property | ||||||
| 10 | which is not sold or offered for sale by persons organized for | ||||||
| 11 | profit. The selling of school books and school supplies by | ||||||
| 12 | schools at retail to students is not "primarily for the | ||||||
| 13 | purposes of" the school which does such selling. This | ||||||
| 14 | paragraph does not apply to nor subject to taxation occasional | ||||||
| 15 | dinners, social or similar activities of a person organized | ||||||
| 16 | and operated exclusively for charitable, religious or | ||||||
| 17 | educational purposes, whether or not such activities are open | ||||||
| 18 | to the public. | ||||||
| 19 | A person who is the recipient of a grant or contract under | ||||||
| 20 | Title VII of the Older Americans Act of 1965 (P.L. 92-258) and | ||||||
| 21 | serves meals to participants in the federal Nutrition Program | ||||||
| 22 | for the Elderly in return for contributions established in | ||||||
| 23 | amount by the individual participant pursuant to a schedule of | ||||||
| 24 | suggested fees as provided for in the federal Act is not a | ||||||
| 25 | retailer under this Act with respect to such transactions. | ||||||
| 26 | Persons who engage in the business of transferring | ||||||
| |||||||
| |||||||
| 1 | tangible personal property upon the redemption of trading | ||||||
| 2 | stamps are retailers hereunder when engaged in such business. | ||||||
| 3 | The isolated or occasional sale of tangible personal | ||||||
| 4 | property at retail by a person who does not hold himself out as | ||||||
| 5 | being engaged (or who does not habitually engage) in selling | ||||||
| 6 | such tangible personal property at retail or a sale through a | ||||||
| 7 | bulk vending machine does not make such person a retailer | ||||||
| 8 | hereunder. However, any person who is engaged in a business | ||||||
| 9 | which is not subject to the tax imposed by the Retailers' | ||||||
| 10 | Occupation Tax Act because of involving the sale of or a | ||||||
| 11 | contract to sell real estate or a construction contract to | ||||||
| 12 | improve real estate, but who, in the course of conducting such | ||||||
| 13 | business, transfers tangible personal property to users or | ||||||
| 14 | consumers in the finished form in which it was purchased, and | ||||||
| 15 | which does not become real estate, under any provision of a | ||||||
| 16 | construction contract or real estate sale or real estate sales | ||||||
| 17 | agreement entered into with some other person arising out of | ||||||
| 18 | or because of such nontaxable business, is a retailer to the | ||||||
| 19 | extent of the value of the tangible personal property so | ||||||
| 20 | transferred. If, in such transaction, a separate charge is | ||||||
| 21 | made for the tangible personal property so transferred, the | ||||||
| 22 | value of such property, for the purposes of this Act, is the | ||||||
| 23 | amount so separately charged, but not less than the cost of | ||||||
| 24 | such property to the transferor; if no separate charge is | ||||||
| 25 | made, the value of such property, for the purposes of this Act, | ||||||
| 26 | is the cost to the transferor of such tangible personal | ||||||
| |||||||
| |||||||
| 1 | property. | ||||||
| 2 | "Retailer maintaining a place of business in this State", | ||||||
| 3 | or any like term, means and includes any of the following | ||||||
| 4 | retailers: | ||||||
| 5 | (1) A retailer having or maintaining within this | ||||||
| 6 | State, directly or by a subsidiary, an office, | ||||||
| 7 | distribution house, sales house, warehouse or other place | ||||||
| 8 | of business, or any agent or other representative | ||||||
| 9 | operating within this State under the authority of the | ||||||
| 10 | retailer or its subsidiary, irrespective of whether such | ||||||
| 11 | place of business or agent or other representative is | ||||||
| 12 | located here permanently or temporarily, or whether such | ||||||
| 13 | retailer or subsidiary is licensed to do business in this | ||||||
| 14 | State. However, the ownership of property that is located | ||||||
| 15 | at the premises of a printer with which the retailer has | ||||||
| 16 | contracted for printing and that consists of the final | ||||||
| 17 | printed product, property that becomes a part of the final | ||||||
| 18 | printed product, or copy from which the printed product is | ||||||
| 19 | produced shall not result in the retailer being deemed to | ||||||
| 20 | have or maintain an office, distribution house, sales | ||||||
| 21 | house, warehouse, or other place of business within this | ||||||
| 22 | State. | ||||||
| 23 | (1.1) A retailer having a contract with a person | ||||||
| 24 | located in this State under which the person, for a | ||||||
| 25 | commission or other consideration based upon the sale of | ||||||
| 26 | tangible personal property by the retailer, directly or | ||||||
| |||||||
| |||||||
| 1 | indirectly refers potential customers to the retailer by | ||||||
| 2 | providing to the potential customers a promotional code or | ||||||
| 3 | other mechanism that allows the retailer to track | ||||||
| 4 | purchases referred by such persons. Examples of mechanisms | ||||||
| 5 | that allow the retailer to track purchases referred by | ||||||
| 6 | such persons include but are not limited to the use of a | ||||||
| 7 | link on the person's Internet website, promotional codes | ||||||
| 8 | distributed through the person's hand-delivered or mailed | ||||||
| 9 | material, and promotional codes distributed by the person | ||||||
| 10 | through radio or other broadcast media. The provisions of | ||||||
| 11 | this paragraph (1.1) shall apply only if the cumulative | ||||||
| 12 | gross receipts from sales of tangible personal property by | ||||||
| 13 | the retailer to customers who are referred to the retailer | ||||||
| 14 | by all persons in this State under such contracts exceed | ||||||
| 15 | $10,000 during the preceding 4 quarterly periods ending on | ||||||
| 16 | the last day of March, June, September, and December. A | ||||||
| 17 | retailer meeting the requirements of this paragraph (1.1) | ||||||
| 18 | shall be presumed to be maintaining a place of business in | ||||||
| 19 | this State but may rebut this presumption by submitting | ||||||
| 20 | proof that the referrals or other activities pursued | ||||||
| 21 | within this State by such persons were not sufficient to | ||||||
| 22 | meet the nexus standards of the United States Constitution | ||||||
| 23 | during the preceding 4 quarterly periods. | ||||||
| 24 | (1.2) Beginning July 1, 2011, a retailer having a | ||||||
| 25 | contract with a person located in this State under which: | ||||||
| 26 | (A) the retailer sells the same or substantially | ||||||
| |||||||
| |||||||
| 1 | similar line of products as the person located in this | ||||||
| 2 | State and does so using an identical or substantially | ||||||
| 3 | similar name, trade name, or trademark as the person | ||||||
| 4 | located in this State; and | ||||||
| 5 | (B) the retailer provides a commission or other | ||||||
| 6 | consideration to the person located in this State | ||||||
| 7 | based upon the sale of tangible personal property by | ||||||
| 8 | the retailer. | ||||||
| 9 | The provisions of this paragraph (1.2) shall apply | ||||||
| 10 | only if the cumulative gross receipts from sales of | ||||||
| 11 | tangible personal property by the retailer to customers in | ||||||
| 12 | this State under all such contracts exceed $10,000 during | ||||||
| 13 | the preceding 4 quarterly periods ending on the last day | ||||||
| 14 | of March, June, September, and December. | ||||||
| 15 | (2) (Blank). | ||||||
| 16 | (3) (Blank). | ||||||
| 17 | (4) (Blank). | ||||||
| 18 | (5) (Blank). | ||||||
| 19 | (6) (Blank). | ||||||
| 20 | (7) (Blank). | ||||||
| 21 | (8) (Blank). | ||||||
| 22 | (9) Beginning October 1, 2018, a retailer making sales | ||||||
| 23 | of tangible personal property to purchasers in Illinois | ||||||
| 24 | from outside of Illinois if: | ||||||
| 25 | (A) the cumulative gross receipts from sales of | ||||||
| 26 | tangible personal property to purchasers in Illinois | ||||||
| |||||||
| |||||||
| 1 | are $100,000 or more; or | ||||||
| 2 | (B) the retailer enters into 200 or more separate | ||||||
| 3 | transactions for the sale of tangible personal | ||||||
| 4 | property to purchasers in Illinois. | ||||||
| 5 | The retailer shall determine on a quarterly basis, | ||||||
| 6 | ending on the last day of March, June, September, and | ||||||
| 7 | December, whether he or she meets the criteria of either | ||||||
| 8 | subparagraph (A) or (B) of this paragraph (9) for the | ||||||
| 9 | preceding 12-month period. If the retailer meets the | ||||||
| 10 | threshold of either subparagraph (A) or (B) for a 12-month | ||||||
| 11 | period, he or she is considered a retailer maintaining a | ||||||
| 12 | place of business in this State and is required to collect | ||||||
| 13 | and remit the tax imposed under this Act and file returns | ||||||
| 14 | for one year. At the end of that one-year period, the | ||||||
| 15 | retailer shall determine whether he or she met the | ||||||
| 16 | threshold of either subparagraph (A) or (B) during the | ||||||
| 17 | preceding 12-month period. If the retailer met the | ||||||
| 18 | criteria in either subparagraph (A) or (B) for the | ||||||
| 19 | preceding 12-month period, he or she is considered a | ||||||
| 20 | retailer maintaining a place of business in this State and | ||||||
| 21 | is required to collect and remit the tax imposed under | ||||||
| 22 | this Act and file returns for the subsequent year. If at | ||||||
| 23 | the end of a one-year period a retailer that was required | ||||||
| 24 | to collect and remit the tax imposed under this Act | ||||||
| 25 | determines that he or she did not meet the threshold in | ||||||
| 26 | either subparagraph (A) or (B) during the preceding | ||||||
| |||||||
| |||||||
| 1 | 12-month period, the retailer shall subsequently determine | ||||||
| 2 | on a quarterly basis, ending on the last day of March, | ||||||
| 3 | June, September, and December, whether he or she meets the | ||||||
| 4 | threshold of either subparagraph (A) or (B) for the | ||||||
| 5 | preceding 12-month period. | ||||||
| 6 | Beginning January 1, 2020, neither the gross receipts | ||||||
| 7 | from nor the number of separate transactions for sales of | ||||||
| 8 | tangible personal property to purchasers in Illinois that | ||||||
| 9 | a retailer makes through a marketplace facilitator and for | ||||||
| 10 | which the retailer has received a certification from the | ||||||
| 11 | marketplace facilitator pursuant to Section 2d of this Act | ||||||
| 12 | shall be included for purposes of determining whether he | ||||||
| 13 | or she has met the thresholds of this paragraph (9). | ||||||
| 14 | (10) Beginning January 1, 2020, a marketplace | ||||||
| 15 | facilitator that meets a threshold set forth in subsection | ||||||
| 16 | (b) of Section 2d of this Act. | ||||||
| 17 | "Bulk vending machine" means a vending machine, containing | ||||||
| 18 | unsorted confections, nuts, toys, or other items designed | ||||||
| 19 | primarily to be used or played with by children which, when a | ||||||
| 20 | coin or coins of a denomination not larger than $0.50 are | ||||||
| 21 | inserted, are dispensed in equal portions, at random and | ||||||
| 22 | without selection by the customer. | ||||||
| 23 | (Source: P.A. 101-9, eff. 6-5-19; 101-31, eff. 1-1-20; | ||||||
| 24 | 101-604, eff. 1-1-20; 102-353, eff. 1-1-22.)
| ||||||
| 25 | (35 ILCS 105/3) (from Ch. 120, par. 439.3) | ||||||
| |||||||
| |||||||
| 1 | Sec. 3. Tax imposed. A tax is imposed upon the privilege of | ||||||
| 2 | using in this State tangible personal property purchased, | ||||||
| 3 | which, on and after January 1, 2025, includes leased, at | ||||||
| 4 | retail from a retailer, including computer software, and | ||||||
| 5 | including photographs, negatives, and positives that are the | ||||||
| 6 | product of photoprocessing, but not including products of | ||||||
| 7 | photoprocessing produced for use in motion pictures for | ||||||
| 8 | commercial exhibition. Beginning January 1, 2001, prepaid | ||||||
| 9 | telephone calling arrangements shall be considered tangible | ||||||
| 10 | personal property subject to the tax imposed under this Act | ||||||
| 11 | regardless of the form in which those arrangements may be | ||||||
| 12 | embodied, transmitted, or fixed by any method now known or | ||||||
| 13 | hereafter developed. Purchases of (1) electricity delivered to | ||||||
| 14 | customers by wire; (2) natural or artificial gas that is | ||||||
| 15 | delivered to customers through pipes, pipelines, or mains; and | ||||||
| 16 | (3) water that is delivered to customers through pipes, | ||||||
| 17 | pipelines, or mains are not subject to tax under this Act. The | ||||||
| 18 | provisions of this amendatory Act of the 98th General Assembly | ||||||
| 19 | are declaratory of existing law as to the meaning and scope of | ||||||
| 20 | this Act. | ||||||
| 21 | The imposition of the tax under this Act on the privilege | ||||||
| 22 | of using tangible personal property leased at retail applies | ||||||
| 23 | to leases of tangible personal property in effect, entered | ||||||
| 24 | into, or renewed on or after January 1, 2025. In the case of | ||||||
| 25 | leases, except as otherwise provided in this Act, the lessor, | ||||||
| 26 | in collecting the tax, may collect for each tax return period, | ||||||
| |||||||
| |||||||
| 1 | only the tax applicable to that part of the selling price | ||||||
| 2 | actually received during such tax return period. | ||||||
| 3 | The inclusion of leases in the tax imposed under this Act | ||||||
| 4 | by this amendatory Act of the 103rd General Assembly does not, | ||||||
| 5 | however, extend to motor vehicles, watercraft, aircraft, and | ||||||
| 6 | semitrailers, as defined in Section 1-187 of the Illinois | ||||||
| 7 | Vehicle Code, that are required to be registered with an | ||||||
| 8 | agency of this State. The taxation of these items shall | ||||||
| 9 | continue in effect as prior to the effective date of the | ||||||
| 10 | changes made to this Section by this amendatory Act of the | ||||||
| 11 | 103rd General Assembly (i.e. dealers owe retailers' occupation | ||||||
| 12 | tax, lessors owe use tax, and lessees are not subject to | ||||||
| 13 | retailers' occupation or use tax). | ||||||
| 14 | (Source: P.A. 98-583, eff. 1-1-14.)
| ||||||
| 15 | (35 ILCS 105/3-5) | ||||||
| 16 | Sec. 3-5. Exemptions. Use, which, on and after January 1, | ||||||
| 17 | 2025, includes use by a lessee, of the following tangible | ||||||
| 18 | personal property is exempt from the tax imposed by this Act: | ||||||
| 19 | (1) Personal property purchased from a corporation, | ||||||
| 20 | society, association, foundation, institution, or | ||||||
| 21 | organization, other than a limited liability company, that is | ||||||
| 22 | organized and operated as a not-for-profit service enterprise | ||||||
| 23 | for the benefit of persons 65 years of age or older if the | ||||||
| 24 | personal property was not purchased by the enterprise for the | ||||||
| 25 | purpose of resale by the enterprise. | ||||||
| |||||||
| |||||||
| 1 | (2) Personal property purchased by a not-for-profit | ||||||
| 2 | Illinois county fair association for use in conducting, | ||||||
| 3 | operating, or promoting the county fair. | ||||||
| 4 | (3) Personal property purchased by a not-for-profit arts | ||||||
| 5 | or cultural organization that establishes, by proof required | ||||||
| 6 | by the Department by rule, that it has received an exemption | ||||||
| 7 | under Section 501(c)(3) of the Internal Revenue Code and that | ||||||
| 8 | is organized and operated primarily for the presentation or | ||||||
| 9 | support of arts or cultural programming, activities, or | ||||||
| 10 | services. These organizations include, but are not limited to, | ||||||
| 11 | music and dramatic arts organizations such as symphony | ||||||
| 12 | orchestras and theatrical groups, arts and cultural service | ||||||
| 13 | organizations, local arts councils, visual arts organizations, | ||||||
| 14 | and media arts organizations. On and after July 1, 2001 (the | ||||||
| 15 | effective date of Public Act 92-35), however, an entity | ||||||
| 16 | otherwise eligible for this exemption shall not make tax-free | ||||||
| 17 | purchases unless it has an active identification number issued | ||||||
| 18 | by the Department. | ||||||
| 19 | (4) Except as otherwise provided in this Act, personal | ||||||
| 20 | property purchased by a governmental body, by a corporation, | ||||||
| 21 | society, association, foundation, or institution organized and | ||||||
| 22 | operated exclusively for charitable, religious, or educational | ||||||
| 23 | purposes, or by a not-for-profit corporation, society, | ||||||
| 24 | association, foundation, institution, or organization that has | ||||||
| 25 | no compensated officers or employees and that is organized and | ||||||
| 26 | operated primarily for the recreation of persons 55 years of | ||||||
| |||||||
| |||||||
| 1 | age or older. A limited liability company may qualify for the | ||||||
| 2 | exemption under this paragraph only if the limited liability | ||||||
| 3 | company is organized and operated exclusively for educational | ||||||
| 4 | purposes. On and after July 1, 1987, however, no entity | ||||||
| 5 | otherwise eligible for this exemption shall make tax-free | ||||||
| 6 | purchases unless it has an active exemption identification | ||||||
| 7 | number issued by the Department. | ||||||
| 8 | (5) Until July 1, 2003, a passenger car that is a | ||||||
| 9 | replacement vehicle to the extent that the purchase price of | ||||||
| 10 | the car is subject to the Replacement Vehicle Tax. | ||||||
| 11 | (6) Until July 1, 2003 and beginning again on September 1, | ||||||
| 12 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
| 13 | equipment, including repair and replacement parts, both new | ||||||
| 14 | and used, and including that manufactured on special order, | ||||||
| 15 | certified by the purchaser to be used primarily for graphic | ||||||
| 16 | arts production, and including machinery and equipment | ||||||
| 17 | purchased for lease. Equipment includes chemicals or chemicals | ||||||
| 18 | acting as catalysts but only if the chemicals or chemicals | ||||||
| 19 | acting as catalysts effect a direct and immediate change upon | ||||||
| 20 | a graphic arts product. Beginning on July 1, 2017, graphic | ||||||
| 21 | arts machinery and equipment is included in the manufacturing | ||||||
| 22 | and assembling machinery and equipment exemption under | ||||||
| 23 | paragraph (18). | ||||||
| 24 | (7) Farm chemicals. | ||||||
| 25 | (8) Legal tender, currency, medallions, or gold or silver | ||||||
| 26 | coinage issued by the State of Illinois, the government of the | ||||||
| |||||||
| |||||||
| 1 | United States of America, or the government of any foreign | ||||||
| 2 | country, and bullion. | ||||||
| 3 | (9) Personal property purchased from a teacher-sponsored | ||||||
| 4 | student organization affiliated with an elementary or | ||||||
| 5 | secondary school located in Illinois. | ||||||
| 6 | (10) A motor vehicle that is used for automobile renting, | ||||||
| 7 | as defined in the Automobile Renting Occupation and Use Tax | ||||||
| 8 | Act. | ||||||
| 9 | (11) Farm machinery and equipment, both new and used, | ||||||
| 10 | including that manufactured on special order, certified by the | ||||||
| 11 | purchaser to be used primarily for production agriculture or | ||||||
| 12 | State or federal agricultural programs, including individual | ||||||
| 13 | replacement parts for the machinery and equipment, including | ||||||
| 14 | machinery and equipment purchased for lease, and including | ||||||
| 15 | implements of husbandry defined in Section 1-130 of the | ||||||
| 16 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
| 17 | chemical and fertilizer spreaders, and nurse wagons required | ||||||
| 18 | to be registered under Section 3-809 of the Illinois Vehicle | ||||||
| 19 | Code, but excluding other motor vehicles required to be | ||||||
| 20 | registered under the Illinois Vehicle Code. Horticultural | ||||||
| 21 | polyhouses or hoop houses used for propagating, growing, or | ||||||
| 22 | overwintering plants shall be considered farm machinery and | ||||||
| 23 | equipment under this item (11). Agricultural chemical tender | ||||||
| 24 | tanks and dry boxes shall include units sold separately from a | ||||||
| 25 | motor vehicle required to be licensed and units sold mounted | ||||||
| 26 | on a motor vehicle required to be licensed if the selling price | ||||||
| |||||||
| |||||||
| 1 | of the tender is separately stated. | ||||||
| 2 | Farm machinery and equipment shall include precision | ||||||
| 3 | farming equipment that is installed or purchased to be | ||||||
| 4 | installed on farm machinery and equipment, including, but not | ||||||
| 5 | limited to, tractors, harvesters, sprayers, planters, seeders, | ||||||
| 6 | or spreaders. Precision farming equipment includes, but is not | ||||||
| 7 | limited to, soil testing sensors, computers, monitors, | ||||||
| 8 | software, global positioning and mapping systems, and other | ||||||
| 9 | such equipment. | ||||||
| 10 | Farm machinery and equipment also includes computers, | ||||||
| 11 | sensors, software, and related equipment used primarily in the | ||||||
| 12 | computer-assisted operation of production agriculture | ||||||
| 13 | facilities, equipment, and activities such as, but not limited | ||||||
| 14 | to, the collection, monitoring, and correlation of animal and | ||||||
| 15 | crop data for the purpose of formulating animal diets and | ||||||
| 16 | agricultural chemicals. | ||||||
| 17 | Beginning on January 1, 2024, farm machinery and equipment | ||||||
| 18 | also includes electrical power generation equipment used | ||||||
| 19 | primarily for production agriculture. | ||||||
| 20 | This item (11) is exempt from the provisions of Section | ||||||
| 21 | 3-90. | ||||||
| 22 | (12) Until June 30, 2013, fuel and petroleum products sold | ||||||
| 23 | to or used by an air common carrier, certified by the carrier | ||||||
| 24 | to be used for consumption, shipment, or storage in the | ||||||
| 25 | conduct of its business as an air common carrier, for a flight | ||||||
| 26 | destined for or returning from a location or locations outside | ||||||
| |||||||
| |||||||
| 1 | the United States without regard to previous or subsequent | ||||||
| 2 | domestic stopovers. | ||||||
| 3 | Beginning July 1, 2013, fuel and petroleum products sold | ||||||
| 4 | to or used by an air carrier, certified by the carrier to be | ||||||
| 5 | used for consumption, shipment, or storage in the conduct of | ||||||
| 6 | its business as an air common carrier, for a flight that (i) is | ||||||
| 7 | engaged in foreign trade or is engaged in trade between the | ||||||
| 8 | United States and any of its possessions and (ii) transports | ||||||
| 9 | at least one individual or package for hire from the city of | ||||||
| 10 | origination to the city of final destination on the same | ||||||
| 11 | aircraft, without regard to a change in the flight number of | ||||||
| 12 | that aircraft. | ||||||
| 13 | (13) Proceeds of mandatory service charges separately | ||||||
| 14 | stated on customers' bills for the purchase and consumption of | ||||||
| 15 | food and beverages purchased at retail from a retailer, to the | ||||||
| 16 | extent that the proceeds of the service charge are in fact | ||||||
| 17 | turned over as tips or as a substitute for tips to the | ||||||
| 18 | employees who participate directly in preparing, serving, | ||||||
| 19 | hosting or cleaning up the food or beverage function with | ||||||
| 20 | respect to which the service charge is imposed. | ||||||
| 21 | (14) Until July 1, 2003, oil field exploration, drilling, | ||||||
| 22 | and production equipment, including (i) rigs and parts of | ||||||
| 23 | rigs, rotary rigs, cable tool rigs, and workover rigs, (ii) | ||||||
| 24 | pipe and tubular goods, including casing and drill strings, | ||||||
| 25 | (iii) pumps and pump-jack units, (iv) storage tanks and flow | ||||||
| 26 | lines, (v) any individual replacement part for oil field | ||||||
| |||||||
| |||||||
| 1 | exploration, drilling, and production equipment, and (vi) | ||||||
| 2 | machinery and equipment purchased for lease; but excluding | ||||||
| 3 | motor vehicles required to be registered under the Illinois | ||||||
| 4 | Vehicle Code. | ||||||
| 5 | (15) Photoprocessing machinery and equipment, including | ||||||
| 6 | repair and replacement parts, both new and used, including | ||||||
| 7 | that manufactured on special order, certified by the purchaser | ||||||
| 8 | to be used primarily for photoprocessing, and including | ||||||
| 9 | photoprocessing machinery and equipment purchased for lease. | ||||||
| 10 | (16) Until July 1, 2028, coal and aggregate exploration, | ||||||
| 11 | mining, off-highway hauling, processing, maintenance, and | ||||||
| 12 | reclamation equipment, including replacement parts and | ||||||
| 13 | equipment, and including equipment purchased for lease, but | ||||||
| 14 | excluding motor vehicles required to be registered under the | ||||||
| 15 | Illinois Vehicle Code. The changes made to this Section by | ||||||
| 16 | Public Act 97-767 apply on and after July 1, 2003, but no claim | ||||||
| 17 | for credit or refund is allowed on or after August 16, 2013 | ||||||
| 18 | (the effective date of Public Act 98-456) for such taxes paid | ||||||
| 19 | during the period beginning July 1, 2003 and ending on August | ||||||
| 20 | 16, 2013 (the effective date of Public Act 98-456). | ||||||
| 21 | (17) Until July 1, 2003, distillation machinery and | ||||||
| 22 | equipment, sold as a unit or kit, assembled or installed by the | ||||||
| 23 | retailer, certified by the user to be used only for the | ||||||
| 24 | production of ethyl alcohol that will be used for consumption | ||||||
| 25 | as motor fuel or as a component of motor fuel for the personal | ||||||
| 26 | use of the user, and not subject to sale or resale. | ||||||
| |||||||
| |||||||
| 1 | (18) Manufacturing and assembling machinery and equipment | ||||||
| 2 | used primarily in the process of manufacturing or assembling | ||||||
| 3 | tangible personal property for wholesale or retail sale or | ||||||
| 4 | lease, whether that sale or lease is made directly by the | ||||||
| 5 | manufacturer or by some other person, whether the materials | ||||||
| 6 | used in the process are owned by the manufacturer or some other | ||||||
| 7 | person, or whether that sale or lease is made apart from or as | ||||||
| 8 | an incident to the seller's engaging in the service occupation | ||||||
| 9 | of producing machines, tools, dies, jigs, patterns, gauges, or | ||||||
| 10 | other similar items of no commercial value on special order | ||||||
| 11 | for a particular purchaser. The exemption provided by this | ||||||
| 12 | paragraph (18) includes production related tangible personal | ||||||
| 13 | property, as defined in Section 3-50, purchased on or after | ||||||
| 14 | July 1, 2019. The exemption provided by this paragraph (18) | ||||||
| 15 | does not include machinery and equipment used in (i) the | ||||||
| 16 | generation of electricity for wholesale or retail sale; (ii) | ||||||
| 17 | the generation or treatment of natural or artificial gas for | ||||||
| 18 | wholesale or retail sale that is delivered to customers | ||||||
| 19 | through pipes, pipelines, or mains; or (iii) the treatment of | ||||||
| 20 | water for wholesale or retail sale that is delivered to | ||||||
| 21 | customers through pipes, pipelines, or mains. The provisions | ||||||
| 22 | of Public Act 98-583 are declaratory of existing law as to the | ||||||
| 23 | meaning and scope of this exemption. Beginning on July 1, | ||||||
| 24 | 2017, the exemption provided by this paragraph (18) includes, | ||||||
| 25 | but is not limited to, graphic arts machinery and equipment, | ||||||
| 26 | as defined in paragraph (6) of this Section. | ||||||
| |||||||
| |||||||
| 1 | (19) Personal property delivered to a purchaser or | ||||||
| 2 | purchaser's donee inside Illinois when the purchase order for | ||||||
| 3 | that personal property was received by a florist located | ||||||
| 4 | outside Illinois who has a florist located inside Illinois | ||||||
| 5 | deliver the personal property. | ||||||
| 6 | (20) Semen used for artificial insemination of livestock | ||||||
| 7 | for direct agricultural production. | ||||||
| 8 | (21) Horses, or interests in horses, registered with and | ||||||
| 9 | meeting the requirements of any of the Arabian Horse Club | ||||||
| 10 | Registry of America, Appaloosa Horse Club, American Quarter | ||||||
| 11 | Horse Association, United States Trotting Association, or | ||||||
| 12 | Jockey Club, as appropriate, used for purposes of breeding or | ||||||
| 13 | racing for prizes. This item (21) is exempt from the | ||||||
| 14 | provisions of Section 3-90, and the exemption provided for | ||||||
| 15 | under this item (21) applies for all periods beginning May 30, | ||||||
| 16 | 1995, but no claim for credit or refund is allowed on or after | ||||||
| 17 | January 1, 2008 for such taxes paid during the period | ||||||
| 18 | beginning May 30, 2000 and ending on January 1, 2008. | ||||||
| 19 | (22) Computers and communications equipment utilized for | ||||||
| 20 | any hospital purpose and equipment used in the diagnosis, | ||||||
| 21 | analysis, or treatment of hospital patients purchased by a | ||||||
| 22 | lessor who leases the equipment, under a lease of one year or | ||||||
| 23 | longer executed or in effect at the time the lessor would | ||||||
| 24 | otherwise be subject to the tax imposed by this Act, to a | ||||||
| 25 | hospital that has been issued an active tax exemption | ||||||
| 26 | identification number by the Department under Section 1g of | ||||||
| |||||||
| |||||||
| 1 | the Retailers' Occupation Tax Act. If the equipment is leased | ||||||
| 2 | in a manner that does not qualify for this exemption or is used | ||||||
| 3 | in any other non-exempt manner, the lessor shall be liable for | ||||||
| 4 | the tax imposed under this Act or the Service Use Tax Act, as | ||||||
| 5 | the case may be, based on the fair market value of the property | ||||||
| 6 | at the time the non-qualifying use occurs. No lessor shall | ||||||
| 7 | collect or attempt to collect an amount (however designated) | ||||||
| 8 | that purports to reimburse that lessor for the tax imposed by | ||||||
| 9 | this Act or the Service Use Tax Act, as the case may be, if the | ||||||
| 10 | tax has not been paid by the lessor. If a lessor improperly | ||||||
| 11 | collects any such amount from the lessee, the lessee shall | ||||||
| 12 | have a legal right to claim a refund of that amount from the | ||||||
| 13 | lessor. If, however, that amount is not refunded to the lessee | ||||||
| 14 | for any reason, the lessor is liable to pay that amount to the | ||||||
| 15 | Department. | ||||||
| 16 | (23) Personal property purchased by a lessor who leases | ||||||
| 17 | the property, under a lease of one year or longer executed or | ||||||
| 18 | in effect at the time the lessor would otherwise be subject to | ||||||
| 19 | the tax imposed by this Act, to a governmental body that has | ||||||
| 20 | been issued an active sales tax exemption identification | ||||||
| 21 | number by the Department under Section 1g of the Retailers' | ||||||
| 22 | Occupation Tax Act. If the property is leased in a manner that | ||||||
| 23 | does not qualify for this exemption or used in any other | ||||||
| 24 | non-exempt manner, the lessor shall be liable for the tax | ||||||
| 25 | imposed under this Act or the Service Use Tax Act, as the case | ||||||
| 26 | may be, based on the fair market value of the property at the | ||||||
| |||||||
| |||||||
| 1 | time the non-qualifying use occurs. No lessor shall collect or | ||||||
| 2 | attempt to collect an amount (however designated) that | ||||||
| 3 | purports to reimburse that lessor for the tax imposed by this | ||||||
| 4 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
| 5 | has not been paid by the lessor. If a lessor improperly | ||||||
| 6 | collects any such amount from the lessee, the lessee shall | ||||||
| 7 | have a legal right to claim a refund of that amount from the | ||||||
| 8 | lessor. If, however, that amount is not refunded to the lessee | ||||||
| 9 | for any reason, the lessor is liable to pay that amount to the | ||||||
| 10 | Department. | ||||||
| 11 | (24) Beginning with taxable years ending on or after | ||||||
| 12 | December 31, 1995 and ending with taxable years ending on or | ||||||
| 13 | before December 31, 2004, personal property that is donated | ||||||
| 14 | for disaster relief to be used in a State or federally declared | ||||||
| 15 | disaster area in Illinois or bordering Illinois by a | ||||||
| 16 | manufacturer or retailer that is registered in this State to a | ||||||
| 17 | corporation, society, association, foundation, or institution | ||||||
| 18 | that has been issued a sales tax exemption identification | ||||||
| 19 | number by the Department that assists victims of the disaster | ||||||
| 20 | who reside within the declared disaster area. | ||||||
| 21 | (25) Beginning with taxable years ending on or after | ||||||
| 22 | December 31, 1995 and ending with taxable years ending on or | ||||||
| 23 | before December 31, 2004, personal property that is used in | ||||||
| 24 | the performance of infrastructure repairs in this State, | ||||||
| 25 | including, but not limited to, municipal roads and streets, | ||||||
| 26 | access roads, bridges, sidewalks, waste disposal systems, | ||||||
| |||||||
| |||||||
| 1 | water and sewer line extensions, water distribution and | ||||||
| 2 | purification facilities, storm water drainage and retention | ||||||
| 3 | facilities, and sewage treatment facilities, resulting from a | ||||||
| 4 | State or federally declared disaster in Illinois or bordering | ||||||
| 5 | Illinois when such repairs are initiated on facilities located | ||||||
| 6 | in the declared disaster area within 6 months after the | ||||||
| 7 | disaster. | ||||||
| 8 | (26) Beginning July 1, 1999, game or game birds purchased | ||||||
| 9 | at a "game breeding and hunting preserve area" as that term is | ||||||
| 10 | used in the Wildlife Code. This paragraph is exempt from the | ||||||
| 11 | provisions of Section 3-90. | ||||||
| 12 | (27) A motor vehicle, as that term is defined in Section | ||||||
| 13 | 1-146 of the Illinois Vehicle Code, that is donated to a | ||||||
| 14 | corporation, limited liability company, society, association, | ||||||
| 15 | foundation, or institution that is determined by the | ||||||
| 16 | Department to be organized and operated exclusively for | ||||||
| 17 | educational purposes. For purposes of this exemption, "a | ||||||
| 18 | corporation, limited liability company, society, association, | ||||||
| 19 | foundation, or institution organized and operated exclusively | ||||||
| 20 | for educational purposes" means all tax-supported public | ||||||
| 21 | schools, private schools that offer systematic instruction in | ||||||
| 22 | useful branches of learning by methods common to public | ||||||
| 23 | schools and that compare favorably in their scope and | ||||||
| 24 | intensity with the course of study presented in tax-supported | ||||||
| 25 | schools, and vocational or technical schools or institutes | ||||||
| 26 | organized and operated exclusively to provide a course of | ||||||
| |||||||
| |||||||
| 1 | study of not less than 6 weeks duration and designed to prepare | ||||||
| 2 | individuals to follow a trade or to pursue a manual, | ||||||
| 3 | technical, mechanical, industrial, business, or commercial | ||||||
| 4 | occupation. | ||||||
| 5 | (28) Beginning January 1, 2000, personal property, | ||||||
| 6 | including food, purchased through fundraising events for the | ||||||
| 7 | benefit of a public or private elementary or secondary school, | ||||||
| 8 | a group of those schools, or one or more school districts if | ||||||
| 9 | the events are sponsored by an entity recognized by the school | ||||||
| 10 | district that consists primarily of volunteers and includes | ||||||
| 11 | parents and teachers of the school children. This paragraph | ||||||
| 12 | does not apply to fundraising events (i) for the benefit of | ||||||
| 13 | private home instruction or (ii) for which the fundraising | ||||||
| 14 | entity purchases the personal property sold at the events from | ||||||
| 15 | another individual or entity that sold the property for the | ||||||
| 16 | purpose of resale by the fundraising entity and that profits | ||||||
| 17 | from the sale to the fundraising entity. This paragraph is | ||||||
| 18 | exempt from the provisions of Section 3-90. | ||||||
| 19 | (29) Beginning January 1, 2000 and through December 31, | ||||||
| 20 | 2001, new or used automatic vending machines that prepare and | ||||||
| 21 | serve hot food and beverages, including coffee, soup, and | ||||||
| 22 | other items, and replacement parts for these machines. | ||||||
| 23 | Beginning January 1, 2002 and through June 30, 2003, machines | ||||||
| 24 | and parts for machines used in commercial, coin-operated | ||||||
| 25 | amusement and vending business if a use or occupation tax is | ||||||
| 26 | paid on the gross receipts derived from the use of the | ||||||
| |||||||
| |||||||
| 1 | commercial, coin-operated amusement and vending machines. This | ||||||
| 2 | paragraph is exempt from the provisions of Section 3-90. | ||||||
| 3 | (30) Beginning January 1, 2001 and through June 30, 2016, | ||||||
| 4 | food for human consumption that is to be consumed off the | ||||||
| 5 | premises where it is sold (other than alcoholic beverages, | ||||||
| 6 | soft drinks, and food that has been prepared for immediate | ||||||
| 7 | consumption) and prescription and nonprescription medicines, | ||||||
| 8 | drugs, medical appliances, and insulin, urine testing | ||||||
| 9 | materials, syringes, and needles used by diabetics, for human | ||||||
| 10 | use, when purchased for use by a person receiving medical | ||||||
| 11 | assistance under Article V of the Illinois Public Aid Code who | ||||||
| 12 | resides in a licensed long-term care facility, as defined in | ||||||
| 13 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
| 14 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
| 15 | Specialized Mental Health Rehabilitation Act of 2013. | ||||||
| 16 | (31) Beginning on August 2, 2001 (the effective date of | ||||||
| 17 | Public Act 92-227), computers and communications equipment | ||||||
| 18 | utilized for any hospital purpose and equipment used in the | ||||||
| 19 | diagnosis, analysis, or treatment of hospital patients | ||||||
| 20 | purchased by a lessor who leases the equipment, under a lease | ||||||
| 21 | of one year or longer executed or in effect at the time the | ||||||
| 22 | lessor would otherwise be subject to the tax imposed by this | ||||||
| 23 | Act, to a hospital that has been issued an active tax exemption | ||||||
| 24 | identification number by the Department under Section 1g of | ||||||
| 25 | the Retailers' Occupation Tax Act. If the equipment is leased | ||||||
| 26 | in a manner that does not qualify for this exemption or is used | ||||||
| |||||||
| |||||||
| 1 | in any other nonexempt manner, the lessor shall be liable for | ||||||
| 2 | the tax imposed under this Act or the Service Use Tax Act, as | ||||||
| 3 | the case may be, based on the fair market value of the property | ||||||
| 4 | at the time the nonqualifying use occurs. No lessor shall | ||||||
| 5 | collect or attempt to collect an amount (however designated) | ||||||
| 6 | that purports to reimburse that lessor for the tax imposed by | ||||||
| 7 | this Act or the Service Use Tax Act, as the case may be, if the | ||||||
| 8 | tax has not been paid by the lessor. If a lessor improperly | ||||||
| 9 | collects any such amount from the lessee, the lessee shall | ||||||
| 10 | have a legal right to claim a refund of that amount from the | ||||||
| 11 | lessor. If, however, that amount is not refunded to the lessee | ||||||
| 12 | for any reason, the lessor is liable to pay that amount to the | ||||||
| 13 | Department. This paragraph is exempt from the provisions of | ||||||
| 14 | Section 3-90. | ||||||
| 15 | (32) Beginning on August 2, 2001 (the effective date of | ||||||
| 16 | Public Act 92-227), personal property purchased by a lessor | ||||||
| 17 | who leases the property, under a lease of one year or longer | ||||||
| 18 | executed or in effect at the time the lessor would otherwise be | ||||||
| 19 | subject to the tax imposed by this Act, to a governmental body | ||||||
| 20 | that has been issued an active sales tax exemption | ||||||
| 21 | identification number by the Department under Section 1g of | ||||||
| 22 | the Retailers' Occupation Tax Act. If the property is leased | ||||||
| 23 | in a manner that does not qualify for this exemption or used in | ||||||
| 24 | any other nonexempt manner, the lessor shall be liable for the | ||||||
| 25 | tax imposed under this Act or the Service Use Tax Act, as the | ||||||
| 26 | case may be, based on the fair market value of the property at | ||||||
| |||||||
| |||||||
| 1 | the time the nonqualifying use occurs. No lessor shall collect | ||||||
| 2 | or attempt to collect an amount (however designated) that | ||||||
| 3 | purports to reimburse that lessor for the tax imposed by this | ||||||
| 4 | Act or the Service Use Tax Act, as the case may be, if the tax | ||||||
| 5 | has not been paid by the lessor. If a lessor improperly | ||||||
| 6 | collects any such amount from the lessee, the lessee shall | ||||||
| 7 | have a legal right to claim a refund of that amount from the | ||||||
| 8 | lessor. If, however, that amount is not refunded to the lessee | ||||||
| 9 | for any reason, the lessor is liable to pay that amount to the | ||||||
| 10 | Department. This paragraph is exempt from the provisions of | ||||||
| 11 | Section 3-90. | ||||||
| 12 | (33) On and after July 1, 2003 and through June 30, 2004, | ||||||
| 13 | the use in this State of motor vehicles of the second division | ||||||
| 14 | with a gross vehicle weight in excess of 8,000 pounds and that | ||||||
| 15 | are subject to the commercial distribution fee imposed under | ||||||
| 16 | Section 3-815.1 of the Illinois Vehicle Code. Beginning on | ||||||
| 17 | July 1, 2004 and through June 30, 2005, the use in this State | ||||||
| 18 | of motor vehicles of the second division: (i) with a gross | ||||||
| 19 | vehicle weight rating in excess of 8,000 pounds; (ii) that are | ||||||
| 20 | subject to the commercial distribution fee imposed under | ||||||
| 21 | Section 3-815.1 of the Illinois Vehicle Code; and (iii) that | ||||||
| 22 | are primarily used for commercial purposes. Through June 30, | ||||||
| 23 | 2005, this exemption applies to repair and replacement parts | ||||||
| 24 | added after the initial purchase of such a motor vehicle if | ||||||
| 25 | that motor vehicle is used in a manner that would qualify for | ||||||
| 26 | the rolling stock exemption otherwise provided for in this | ||||||
| |||||||
| |||||||
| 1 | Act. For purposes of this paragraph, the term "used for | ||||||
| 2 | commercial purposes" means the transportation of persons or | ||||||
| 3 | property in furtherance of any commercial or industrial | ||||||
| 4 | enterprise, whether for-hire or not. | ||||||
| 5 | (34) Beginning January 1, 2008, tangible personal property | ||||||
| 6 | used in the construction or maintenance of a community water | ||||||
| 7 | supply, as defined under Section 3.145 of the Environmental | ||||||
| 8 | Protection Act, that is operated by a not-for-profit | ||||||
| 9 | corporation that holds a valid water supply permit issued | ||||||
| 10 | under Title IV of the Environmental Protection Act. This | ||||||
| 11 | paragraph is exempt from the provisions of Section 3-90. | ||||||
| 12 | (35) Beginning January 1, 2010 and continuing through | ||||||
| 13 | December 31, 2029, materials, parts, equipment, components, | ||||||
| 14 | and furnishings incorporated into or upon an aircraft as part | ||||||
| 15 | of the modification, refurbishment, completion, replacement, | ||||||
| 16 | repair, or maintenance of the aircraft. This exemption | ||||||
| 17 | includes consumable supplies used in the modification, | ||||||
| 18 | refurbishment, completion, replacement, repair, and | ||||||
| 19 | maintenance of aircraft. However, until January 1, 2024, this | ||||||
| 20 | exemption excludes any materials, parts, equipment, | ||||||
| 21 | components, and consumable supplies used in the modification, | ||||||
| 22 | replacement, repair, and maintenance of aircraft engines or | ||||||
| 23 | power plants, whether such engines or power plants are | ||||||
| 24 | installed or uninstalled upon any such aircraft. "Consumable | ||||||
| 25 | supplies" include, but are not limited to, adhesive, tape, | ||||||
| 26 | sandpaper, general purpose lubricants, cleaning solution, | ||||||
| |||||||
| |||||||
| 1 | latex gloves, and protective films. | ||||||
| 2 | Beginning January 1, 2010 and continuing through December | ||||||
| 3 | 31, 2023, this exemption applies only to the use of qualifying | ||||||
| 4 | tangible personal property by persons who modify, refurbish, | ||||||
| 5 | complete, repair, replace, or maintain aircraft and who (i) | ||||||
| 6 | hold an Air Agency Certificate and are empowered to operate an | ||||||
| 7 | approved repair station by the Federal Aviation | ||||||
| 8 | Administration, (ii) have a Class IV Rating, and (iii) conduct | ||||||
| 9 | operations in accordance with Part 145 of the Federal Aviation | ||||||
| 10 | Regulations. From January 1, 2024 through December 31, 2029, | ||||||
| 11 | this exemption applies only to the use of qualifying tangible | ||||||
| 12 | personal property by: (A) persons who modify, refurbish, | ||||||
| 13 | complete, repair, replace, or maintain aircraft and who (i) | ||||||
| 14 | hold an Air Agency Certificate and are empowered to operate an | ||||||
| 15 | approved repair station by the Federal Aviation | ||||||
| 16 | Administration, (ii) have a Class IV Rating, and (iii) conduct | ||||||
| 17 | operations in accordance with Part 145 of the Federal Aviation | ||||||
| 18 | Regulations; and (B) persons who engage in the modification, | ||||||
| 19 | replacement, repair, and maintenance of aircraft engines or | ||||||
| 20 | power plants without regard to whether or not those persons | ||||||
| 21 | meet the qualifications of item (A). | ||||||
| 22 | The exemption does not include aircraft operated by a | ||||||
| 23 | commercial air carrier providing scheduled passenger air | ||||||
| 24 | service pursuant to authority issued under Part 121 or Part | ||||||
| 25 | 129 of the Federal Aviation Regulations. The changes made to | ||||||
| 26 | this paragraph (35) by Public Act 98-534 are declarative of | ||||||
| |||||||
| |||||||
| 1 | existing law. It is the intent of the General Assembly that the | ||||||
| 2 | exemption under this paragraph (35) applies continuously from | ||||||
| 3 | January 1, 2010 through December 31, 2024; however, no claim | ||||||
| 4 | for credit or refund is allowed for taxes paid as a result of | ||||||
| 5 | the disallowance of this exemption on or after January 1, 2015 | ||||||
| 6 | and prior to February 5, 2020 (the effective date of Public Act | ||||||
| 7 | 101-629). | ||||||
| 8 | (36) Tangible personal property purchased by a | ||||||
| 9 | public-facilities corporation, as described in Section | ||||||
| 10 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
| 11 | constructing or furnishing a municipal convention hall, but | ||||||
| 12 | only if the legal title to the municipal convention hall is | ||||||
| 13 | transferred to the municipality without any further | ||||||
| 14 | consideration by or on behalf of the municipality at the time | ||||||
| 15 | of the completion of the municipal convention hall or upon the | ||||||
| 16 | retirement or redemption of any bonds or other debt | ||||||
| 17 | instruments issued by the public-facilities corporation in | ||||||
| 18 | connection with the development of the municipal convention | ||||||
| 19 | hall. This exemption includes existing public-facilities | ||||||
| 20 | corporations as provided in Section 11-65-25 of the Illinois | ||||||
| 21 | Municipal Code. This paragraph is exempt from the provisions | ||||||
| 22 | of Section 3-90. | ||||||
| 23 | (37) Beginning January 1, 2017 and through December 31, | ||||||
| 24 | 2026, menstrual pads, tampons, and menstrual cups. | ||||||
| 25 | (38) Merchandise that is subject to the Rental Purchase | ||||||
| 26 | Agreement Occupation and Use Tax. The purchaser must certify | ||||||
| |||||||
| |||||||
| 1 | that the item is purchased to be rented subject to a | ||||||
| 2 | rental-purchase rental purchase agreement, as defined in the | ||||||
| 3 | Rental-Purchase Rental Purchase Agreement Act, and provide | ||||||
| 4 | proof of registration under the Rental Purchase Agreement | ||||||
| 5 | Occupation and Use Tax Act. This paragraph is exempt from the | ||||||
| 6 | provisions of Section 3-90. | ||||||
| 7 | (39) Tangible personal property purchased by a purchaser | ||||||
| 8 | who is exempt from the tax imposed by this Act by operation of | ||||||
| 9 | federal law. This paragraph is exempt from the provisions of | ||||||
| 10 | Section 3-90. | ||||||
| 11 | (40) Qualified tangible personal property used in the | ||||||
| 12 | construction or operation of a data center that has been | ||||||
| 13 | granted a certificate of exemption by the Department of | ||||||
| 14 | Commerce and Economic Opportunity, whether that tangible | ||||||
| 15 | personal property is purchased by the owner, operator, or | ||||||
| 16 | tenant of the data center or by a contractor or subcontractor | ||||||
| 17 | of the owner, operator, or tenant. Data centers that would | ||||||
| 18 | have qualified for a certificate of exemption prior to January | ||||||
| 19 | 1, 2020 had Public Act 101-31 been in effect may apply for and | ||||||
| 20 | obtain an exemption for subsequent purchases of computer | ||||||
| 21 | equipment or enabling software purchased or leased to upgrade, | ||||||
| 22 | supplement, or replace computer equipment or enabling software | ||||||
| 23 | purchased or leased in the original investment that would have | ||||||
| 24 | qualified. | ||||||
| 25 | The Department of Commerce and Economic Opportunity shall | ||||||
| 26 | grant a certificate of exemption under this item (40) to | ||||||
| |||||||
| |||||||
| 1 | qualified data centers as defined by Section 605-1025 of the | ||||||
| 2 | Department of Commerce and Economic Opportunity Law of the | ||||||
| 3 | Civil Administrative Code of Illinois. | ||||||
| 4 | For the purposes of this item (40): | ||||||
| 5 | "Data center" means a building or a series of | ||||||
| 6 | buildings rehabilitated or constructed to house working | ||||||
| 7 | servers in one physical location or multiple sites within | ||||||
| 8 | the State of Illinois. | ||||||
| 9 | "Qualified tangible personal property" means: | ||||||
| 10 | electrical systems and equipment; climate control and | ||||||
| 11 | chilling equipment and systems; mechanical systems and | ||||||
| 12 | equipment; monitoring and secure systems; emergency | ||||||
| 13 | generators; hardware; computers; servers; data storage | ||||||
| 14 | devices; network connectivity equipment; racks; cabinets; | ||||||
| 15 | telecommunications cabling infrastructure; raised floor | ||||||
| 16 | systems; peripheral components or systems; software; | ||||||
| 17 | mechanical, electrical, or plumbing systems; battery | ||||||
| 18 | systems; cooling systems and towers; temperature control | ||||||
| 19 | systems; other cabling; and other data center | ||||||
| 20 | infrastructure equipment and systems necessary to operate | ||||||
| 21 | qualified tangible personal property, including fixtures; | ||||||
| 22 | and component parts of any of the foregoing, including | ||||||
| 23 | installation, maintenance, repair, refurbishment, and | ||||||
| 24 | replacement of qualified tangible personal property to | ||||||
| 25 | generate, transform, transmit, distribute, or manage | ||||||
| 26 | electricity necessary to operate qualified tangible | ||||||
| |||||||
| |||||||
| 1 | personal property; and all other tangible personal | ||||||
| 2 | property that is essential to the operations of a computer | ||||||
| 3 | data center. The term "qualified tangible personal | ||||||
| 4 | property" also includes building materials physically | ||||||
| 5 | incorporated into in to the qualifying data center. To | ||||||
| 6 | document the exemption allowed under this Section, the | ||||||
| 7 | retailer must obtain from the purchaser a copy of the | ||||||
| 8 | certificate of eligibility issued by the Department of | ||||||
| 9 | Commerce and Economic Opportunity. | ||||||
| 10 | This item (40) is exempt from the provisions of Section | ||||||
| 11 | 3-90. | ||||||
| 12 | (41) Beginning July 1, 2022, breast pumps, breast pump | ||||||
| 13 | collection and storage supplies, and breast pump kits. This | ||||||
| 14 | item (41) is exempt from the provisions of Section 3-90. As | ||||||
| 15 | used in this item (41): | ||||||
| 16 | "Breast pump" means an electrically controlled or | ||||||
| 17 | manually controlled pump device designed or marketed to be | ||||||
| 18 | used to express milk from a human breast during lactation, | ||||||
| 19 | including the pump device and any battery, AC adapter, or | ||||||
| 20 | other power supply unit that is used to power the pump | ||||||
| 21 | device and is packaged and sold with the pump device at the | ||||||
| 22 | time of sale. | ||||||
| 23 | "Breast pump collection and storage supplies" means | ||||||
| 24 | items of tangible personal property designed or marketed | ||||||
| 25 | to be used in conjunction with a breast pump to collect | ||||||
| 26 | milk expressed from a human breast and to store collected | ||||||
| |||||||
| |||||||
| 1 | milk until it is ready for consumption. | ||||||
| 2 | "Breast pump collection and storage supplies" | ||||||
| 3 | includes, but is not limited to: breast shields and breast | ||||||
| 4 | shield connectors; breast pump tubes and tubing adapters; | ||||||
| 5 | breast pump valves and membranes; backflow protectors and | ||||||
| 6 | backflow protector adaptors; bottles and bottle caps | ||||||
| 7 | specific to the operation of the breast pump; and breast | ||||||
| 8 | milk storage bags. | ||||||
| 9 | "Breast pump collection and storage supplies" does not | ||||||
| 10 | include: (1) bottles and bottle caps not specific to the | ||||||
| 11 | operation of the breast pump; (2) breast pump travel bags | ||||||
| 12 | and other similar carrying accessories, including ice | ||||||
| 13 | packs, labels, and other similar products; (3) breast pump | ||||||
| 14 | cleaning supplies; (4) nursing bras, bra pads, breast | ||||||
| 15 | shells, and other similar products; and (5) creams, | ||||||
| 16 | ointments, and other similar products that relieve | ||||||
| 17 | breastfeeding-related symptoms or conditions of the | ||||||
| 18 | breasts or nipples, unless sold as part of a breast pump | ||||||
| 19 | kit that is pre-packaged by the breast pump manufacturer | ||||||
| 20 | or distributor. | ||||||
| 21 | "Breast pump kit" means a kit that: (1) contains no | ||||||
| 22 | more than a breast pump, breast pump collection and | ||||||
| 23 | storage supplies, a rechargeable battery for operating the | ||||||
| 24 | breast pump, a breastmilk cooler, bottle stands, ice | ||||||
| 25 | packs, and a breast pump carrying case; and (2) is | ||||||
| 26 | pre-packaged as a breast pump kit by the breast pump | ||||||
| |||||||
| |||||||
| 1 | manufacturer or distributor. | ||||||
| 2 | (42) Tangible personal property sold by or on behalf of | ||||||
| 3 | the State Treasurer pursuant to the Revised Uniform Unclaimed | ||||||
| 4 | Property Act. This item (42) is exempt from the provisions of | ||||||
| 5 | Section 3-90. | ||||||
| 6 | (43) Beginning on January 1, 2024, tangible personal | ||||||
| 7 | property purchased by an active duty member of the armed | ||||||
| 8 | forces of the United States who presents valid military | ||||||
| 9 | identification and purchases the property using a form of | ||||||
| 10 | payment where the federal government is the payor. The member | ||||||
| 11 | of the armed forces must complete, at the point of sale, a form | ||||||
| 12 | prescribed by the Department of Revenue documenting that the | ||||||
| 13 | transaction is eligible for the exemption under this | ||||||
| 14 | paragraph. Retailers must keep the form as documentation of | ||||||
| 15 | the exemption in their records for a period of not less than 6 | ||||||
| 16 | years. "Armed forces of the United States" means the United | ||||||
| 17 | States Army, Navy, Air Force, Marine Corps, or Coast Guard. | ||||||
| 18 | This paragraph is exempt from the provisions of Section 3-90. | ||||||
| 19 | (44) Use by the lessee of the following leased tangible | ||||||
| 20 | personal property: | ||||||
| 21 | (1) software transferred subject to a license that | ||||||
| 22 | meets the following requirements: | ||||||
| 23 | (A) it is evidenced by a written agreement signed | ||||||
| 24 | by the licensor and the customer; | ||||||
| 25 | (i) an electronic agreement in which the | ||||||
| 26 | customer accepts the license by means of an | ||||||
| |||||||
| |||||||
| 1 | electronic signature that is verifiable and can be | ||||||
| 2 | authenticated and is attached to or made part of | ||||||
| 3 | the license will comply with this requirement; | ||||||
| 4 | (ii) a license agreement in which the customer | ||||||
| 5 | electronically accepts the terms by clicking "I | ||||||
| 6 | agree" does not comply with this requirement; | ||||||
| 7 | (B) it restricts the customer's duplication and | ||||||
| 8 | use of the software; | ||||||
| 9 | (C) it prohibits the customer from licensing, | ||||||
| 10 | sublicensing, or transferring the software to a third | ||||||
| 11 | party (except to a related party) without the | ||||||
| 12 | permission and continued control of the licensor; | ||||||
| 13 | (D) the licensor has a policy of providing another | ||||||
| 14 | copy at minimal or no charge if the customer loses or | ||||||
| 15 | damages the software, or of permitting the licensee to | ||||||
| 16 | make and keep an archival copy, and such policy is | ||||||
| 17 | either stated in the license agreement, supported by | ||||||
| 18 | the licensor's books and records, or supported by a | ||||||
| 19 | notarized statement made under penalties of perjury by | ||||||
| 20 | the licensor; and | ||||||
| 21 | (E) the customer must destroy or return all copies | ||||||
| 22 | of the software to the licensor at the end of the | ||||||
| 23 | license period; this provision is deemed to be met, in | ||||||
| 24 | the case of a perpetual license, without being set | ||||||
| 25 | forth in the license agreement; and | ||||||
| 26 | (2) property that is subject to a tax on lease | ||||||
| |||||||
| |||||||
| 1 | receipts imposed by a home rule unit of local government | ||||||
| 2 | if the ordinance imposing that tax was adopted prior to | ||||||
| 3 | January 1, 2023. | ||||||
| 4 | (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70, | ||||||
| 5 | Section 70-5, eff. 4-19-22; 102-700, Article 75, Section 75-5, | ||||||
| 6 | eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5, | ||||||
| 7 | Section 5-5, eff. 6-7-23; 103-9, Article 15, Section 15-5, | ||||||
| 8 | eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; | ||||||
| 9 | revised 12-12-23.)
| ||||||
| 10 | (35 ILCS 105/3-10) | ||||||
| 11 | Sec. 3-10. Rate of tax. Unless otherwise provided in this | ||||||
| 12 | Section, the tax imposed by this Act is at the rate of 6.25% of | ||||||
| 13 | either the selling price or the fair market value, if any, of | ||||||
| 14 | the tangible personal property, which, on and after January 1, | ||||||
| 15 | 2025, includes leases of tangible personal property. In all | ||||||
| 16 | cases where property functionally used or consumed is the same | ||||||
| 17 | as the property that was purchased at retail, then the tax is | ||||||
| 18 | imposed on the selling price of the property. In all cases | ||||||
| 19 | where property functionally used or consumed is a by-product | ||||||
| 20 | or waste product that has been refined, manufactured, or | ||||||
| 21 | produced from property purchased at retail, then the tax is | ||||||
| 22 | imposed on the lower of the fair market value, if any, of the | ||||||
| 23 | specific property so used in this State or on the selling price | ||||||
| 24 | of the property purchased at retail. For purposes of this | ||||||
| 25 | Section "fair market value" means the price at which property | ||||||
| |||||||
| |||||||
| 1 | would change hands between a willing buyer and a willing | ||||||
| 2 | seller, neither being under any compulsion to buy or sell and | ||||||
| 3 | both having reasonable knowledge of the relevant facts. The | ||||||
| 4 | fair market value shall be established by Illinois sales by | ||||||
| 5 | the taxpayer of the same property as that functionally used or | ||||||
| 6 | consumed, or if there are no such sales by the taxpayer, then | ||||||
| 7 | comparable sales or purchases of property of like kind and | ||||||
| 8 | character in Illinois. | ||||||
| 9 | Beginning on July 1, 2000 and through December 31, 2000, | ||||||
| 10 | with respect to motor fuel, as defined in Section 1.1 of the | ||||||
| 11 | Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of | ||||||
| 12 | the Use Tax Act, the tax is imposed at the rate of 1.25%. | ||||||
| 13 | Beginning on August 6, 2010 through August 15, 2010, and | ||||||
| 14 | beginning again on August 5, 2022 through August 14, 2022, | ||||||
| 15 | with respect to sales tax holiday items as defined in Section | ||||||
| 16 | 3-6 of this Act, the tax is imposed at the rate of 1.25%. | ||||||
| 17 | With respect to gasohol, the tax imposed by this Act | ||||||
| 18 | applies to (i) 70% of the proceeds of sales made on or after | ||||||
| 19 | January 1, 1990, and before July 1, 2003, (ii) 80% of the | ||||||
| 20 | proceeds of sales made on or after July 1, 2003 and on or | ||||||
| 21 | before July 1, 2017, (iii) 100% of the proceeds of sales made | ||||||
| 22 | after July 1, 2017 and prior to January 1, 2024, (iv) 90% of | ||||||
| 23 | the proceeds of sales made on or after January 1, 2024 and on | ||||||
| 24 | or before December 31, 2028, and (v) 100% of the proceeds of | ||||||
| 25 | sales made after December 31, 2028. If, at any time, however, | ||||||
| 26 | the tax under this Act on sales of gasohol is imposed at the | ||||||
| |||||||
| |||||||
| 1 | rate of 1.25%, then the tax imposed by this Act applies to 100% | ||||||
| 2 | of the proceeds of sales of gasohol made during that time. | ||||||
| 3 | With respect to mid-range ethanol blends, the tax imposed | ||||||
| 4 | by this Act applies to (i) 80% of the proceeds of sales made on | ||||||
| 5 | or after January 1, 2024 and on or before December 31, 2028 and | ||||||
| 6 | (ii) 100% of the proceeds of sales made thereafter. If, at any | ||||||
| 7 | time, however, the tax under this Act on sales of mid-range | ||||||
| 8 | ethanol blends is imposed at the rate of 1.25%, then the tax | ||||||
| 9 | imposed by this Act applies to 100% of the proceeds of sales of | ||||||
| 10 | mid-range ethanol blends made during that time. | ||||||
| 11 | With respect to majority blended ethanol fuel, the tax | ||||||
| 12 | imposed by this Act does not apply to the proceeds of sales | ||||||
| 13 | made on or after July 1, 2003 and on or before December 31, | ||||||
| 14 | 2028 but applies to 100% of the proceeds of sales made | ||||||
| 15 | thereafter. | ||||||
| 16 | With respect to biodiesel blends with no less than 1% and | ||||||
| 17 | no more than 10% biodiesel, the tax imposed by this Act applies | ||||||
| 18 | to (i) 80% of the proceeds of sales made on or after July 1, | ||||||
| 19 | 2003 and on or before December 31, 2018 and (ii) 100% of the | ||||||
| 20 | proceeds of sales made after December 31, 2018 and before | ||||||
| 21 | January 1, 2024. On and after January 1, 2024 and on or before | ||||||
| 22 | December 31, 2030, the taxation of biodiesel, renewable | ||||||
| 23 | diesel, and biodiesel blends shall be as provided in Section | ||||||
| 24 | 3-5.1. If, at any time, however, the tax under this Act on | ||||||
| 25 | sales of biodiesel blends with no less than 1% and no more than | ||||||
| 26 | 10% biodiesel is imposed at the rate of 1.25%, then the tax | ||||||
| |||||||
| |||||||
| 1 | imposed by this Act applies to 100% of the proceeds of sales of | ||||||
| 2 | biodiesel blends with no less than 1% and no more than 10% | ||||||
| 3 | biodiesel made during that time. | ||||||
| 4 | With respect to biodiesel and biodiesel blends with more | ||||||
| 5 | than 10% but no more than 99% biodiesel, the tax imposed by | ||||||
| 6 | this Act does not apply to the proceeds of sales made on or | ||||||
| 7 | after July 1, 2003 and on or before December 31, 2023. On and | ||||||
| 8 | after January 1, 2024 and on or before December 31, 2030, the | ||||||
| 9 | taxation of biodiesel, renewable diesel, and biodiesel blends | ||||||
| 10 | shall be as provided in Section 3-5.1. | ||||||
| 11 | Until July 1, 2022 and beginning again on July 1, 2023, | ||||||
| 12 | with respect to food for human consumption that is to be | ||||||
| 13 | consumed off the premises where it is sold (other than | ||||||
| 14 | alcoholic beverages, food consisting of or infused with adult | ||||||
| 15 | use cannabis, soft drinks, and food that has been prepared for | ||||||
| 16 | immediate consumption), the tax is imposed at the rate of 1%. | ||||||
| 17 | Beginning on July 1, 2022 and until July 1, 2023, with respect | ||||||
| 18 | to food for human consumption that is to be consumed off the | ||||||
| 19 | premises where it is sold (other than alcoholic beverages, | ||||||
| 20 | food consisting of or infused with adult use cannabis, soft | ||||||
| 21 | drinks, and food that has been prepared for immediate | ||||||
| 22 | consumption), the tax is imposed at the rate of 0%. | ||||||
| 23 | With respect to prescription and nonprescription | ||||||
| 24 | medicines, drugs, medical appliances, products classified as | ||||||
| 25 | Class III medical devices by the United States Food and Drug | ||||||
| 26 | Administration that are used for cancer treatment pursuant to | ||||||
| |||||||
| |||||||
| 1 | a prescription, as well as any accessories and components | ||||||
| 2 | related to those devices, modifications to a motor vehicle for | ||||||
| 3 | the purpose of rendering it usable by a person with a | ||||||
| 4 | disability, and insulin, blood sugar testing materials, | ||||||
| 5 | syringes, and needles used by human diabetics, the tax is | ||||||
| 6 | imposed at the rate of 1%. For the purposes of this Section, | ||||||
| 7 | until September 1, 2009: the term "soft drinks" means any | ||||||
| 8 | complete, finished, ready-to-use, non-alcoholic drink, whether | ||||||
| 9 | carbonated or not, including, but not limited to, soda water, | ||||||
| 10 | cola, fruit juice, vegetable juice, carbonated water, and all | ||||||
| 11 | other preparations commonly known as soft drinks of whatever | ||||||
| 12 | kind or description that are contained in any closed or sealed | ||||||
| 13 | bottle, can, carton, or container, regardless of size; but | ||||||
| 14 | "soft drinks" does not include coffee, tea, non-carbonated | ||||||
| 15 | water, infant formula, milk or milk products as defined in the | ||||||
| 16 | Grade A Pasteurized Milk and Milk Products Act, or drinks | ||||||
| 17 | containing 50% or more natural fruit or vegetable juice. | ||||||
| 18 | Notwithstanding any other provisions of this Act, | ||||||
| 19 | beginning September 1, 2009, "soft drinks" means non-alcoholic | ||||||
| 20 | beverages that contain natural or artificial sweeteners. "Soft | ||||||
| 21 | drinks" does not include beverages that contain milk or milk | ||||||
| 22 | products, soy, rice or similar milk substitutes, or greater | ||||||
| 23 | than 50% of vegetable or fruit juice by volume. | ||||||
| 24 | Until August 1, 2009, and notwithstanding any other | ||||||
| 25 | provisions of this Act, "food for human consumption that is to | ||||||
| 26 | be consumed off the premises where it is sold" includes all | ||||||
| |||||||
| |||||||
| 1 | food sold through a vending machine, except soft drinks and | ||||||
| 2 | food products that are dispensed hot from a vending machine, | ||||||
| 3 | regardless of the location of the vending machine. Beginning | ||||||
| 4 | August 1, 2009, and notwithstanding any other provisions of | ||||||
| 5 | this Act, "food for human consumption that is to be consumed | ||||||
| 6 | off the premises where it is sold" includes all food sold | ||||||
| 7 | through a vending machine, except soft drinks, candy, and food | ||||||
| 8 | products that are dispensed hot from a vending machine, | ||||||
| 9 | regardless of the location of the vending machine. | ||||||
| 10 | Notwithstanding any other provisions of this Act, | ||||||
| 11 | beginning September 1, 2009, "food for human consumption that | ||||||
| 12 | is to be consumed off the premises where it is sold" does not | ||||||
| 13 | include candy. For purposes of this Section, "candy" means a | ||||||
| 14 | preparation of sugar, honey, or other natural or artificial | ||||||
| 15 | sweeteners in combination with chocolate, fruits, nuts or | ||||||
| 16 | other ingredients or flavorings in the form of bars, drops, or | ||||||
| 17 | pieces. "Candy" does not include any preparation that contains | ||||||
| 18 | flour or requires refrigeration. | ||||||
| 19 | Notwithstanding any other provisions of this Act, | ||||||
| 20 | beginning September 1, 2009, "nonprescription medicines and | ||||||
| 21 | drugs" does not include grooming and hygiene products. For | ||||||
| 22 | purposes of this Section, "grooming and hygiene products" | ||||||
| 23 | includes, but is not limited to, soaps and cleaning solutions, | ||||||
| 24 | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | ||||||
| 25 | lotions and screens, unless those products are available by | ||||||
| 26 | prescription only, regardless of whether the products meet the | ||||||
| |||||||
| |||||||
| 1 | definition of "over-the-counter-drugs". For the purposes of | ||||||
| 2 | this paragraph, "over-the-counter-drug" means a drug for human | ||||||
| 3 | use that contains a label that identifies the product as a drug | ||||||
| 4 | as required by 21 CFR 201.66. The "over-the-counter-drug" | ||||||
| 5 | label includes: | ||||||
| 6 | (A) a "Drug Facts" panel; or | ||||||
| 7 | (B) a statement of the "active ingredient(s)" with a | ||||||
| 8 | list of those ingredients contained in the compound, | ||||||
| 9 | substance or preparation. | ||||||
| 10 | Beginning on January 1, 2014 (the effective date of Public | ||||||
| 11 | Act 98-122), "prescription and nonprescription medicines and | ||||||
| 12 | drugs" includes medical cannabis purchased from a registered | ||||||
| 13 | dispensing organization under the Compassionate Use of Medical | ||||||
| 14 | Cannabis Program Act. | ||||||
| 15 | As used in this Section, "adult use cannabis" means | ||||||
| 16 | cannabis subject to tax under the Cannabis Cultivation | ||||||
| 17 | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law | ||||||
| 18 | and does not include cannabis subject to tax under the | ||||||
| 19 | Compassionate Use of Medical Cannabis Program Act. | ||||||
| 20 | If the property that is purchased at retail from a | ||||||
| 21 | retailer is acquired outside Illinois and used outside | ||||||
| 22 | Illinois before being brought to Illinois for use here and is | ||||||
| 23 | taxable under this Act, the "selling price" on which the tax is | ||||||
| 24 | computed shall be reduced by an amount that represents a | ||||||
| 25 | reasonable allowance for depreciation for the period of prior | ||||||
| 26 | out-of-state use. No depreciation is allowed in cases where | ||||||
| |||||||
| |||||||
| 1 | the tax under this Act is imposed on lease receipts. | ||||||
| 2 | (Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20, | ||||||
| 3 | Section 20-5, eff. 4-19-22; 102-700, Article 60, Section | ||||||
| 4 | 60-15, eff. 4-19-22; 102-700, Article 65, Section 65-5, eff. | ||||||
| 5 | 4-19-22; 103-9, eff. 6-7-23; 103-154 eff. 6-30-23.)
| ||||||
| 6 | (35 ILCS 105/3-55) (from Ch. 120, par. 439.3-55) | ||||||
| 7 | Sec. 3-55. Multistate exemption. To prevent actual or | ||||||
| 8 | likely multistate taxation, the tax imposed by this Act does | ||||||
| 9 | not apply to the use of tangible personal property in this | ||||||
| 10 | State under the following circumstances: | ||||||
| 11 | (a) The use, in this State, of tangible personal property | ||||||
| 12 | acquired outside this State by a nonresident individual and | ||||||
| 13 | brought into this State by the individual for his or her own | ||||||
| 14 | use while temporarily within this State or while passing | ||||||
| 15 | through this State. | ||||||
| 16 | (b) (Blank). | ||||||
| 17 | (c) The use, in this State, by owners or , lessors, | ||||||
| 18 | lessees, or shippers of tangible personal property that is | ||||||
| 19 | utilized by interstate carriers for hire for use as rolling | ||||||
| 20 | stock moving in interstate commerce as long as so used by the | ||||||
| 21 | interstate carriers for hire, and equipment operated by a | ||||||
| 22 | telecommunications provider, licensed as a common carrier by | ||||||
| 23 | the Federal Communications Commission, which is permanently | ||||||
| 24 | installed in or affixed to aircraft moving in interstate | ||||||
| 25 | commerce. | ||||||
| |||||||
| |||||||
| 1 | (d) The use, in this State, of tangible personal property | ||||||
| 2 | that is acquired outside this State and caused to be brought | ||||||
| 3 | into this State by a person who has already paid a tax in | ||||||
| 4 | another State in respect to the sale, purchase, or use of that | ||||||
| 5 | property, to the extent of the amount of the tax properly due | ||||||
| 6 | and paid in the other State. | ||||||
| 7 | (e) The temporary storage, in this State, of tangible | ||||||
| 8 | personal property that is acquired outside this State and | ||||||
| 9 | that, after being brought into this State and stored here | ||||||
| 10 | temporarily, is used solely outside this State or is | ||||||
| 11 | physically attached to or incorporated into other tangible | ||||||
| 12 | personal property that is used solely outside this State, or | ||||||
| 13 | is altered by converting, fabricating, manufacturing, | ||||||
| 14 | printing, processing, or shaping, and, as altered, is used | ||||||
| 15 | solely outside this State. | ||||||
| 16 | (f) The temporary storage in this State of building | ||||||
| 17 | materials and fixtures that are acquired either in this State | ||||||
| 18 | or outside this State by an Illinois registered combination | ||||||
| 19 | retailer and construction contractor, and that the purchaser | ||||||
| 20 | thereafter uses outside this State by incorporating that | ||||||
| 21 | property into real estate located outside this State. | ||||||
| 22 | (g) The use or purchase of tangible personal property by a | ||||||
| 23 | common carrier by rail or motor that receives the physical | ||||||
| 24 | possession of the property in Illinois, and that transports | ||||||
| 25 | the property, or shares with another common carrier in the | ||||||
| 26 | transportation of the property, out of Illinois on a standard | ||||||
| |||||||
| |||||||
| 1 | uniform bill of lading showing the seller of the property as | ||||||
| 2 | the shipper or consignor of the property to a destination | ||||||
| 3 | outside Illinois, for use outside Illinois. | ||||||
| 4 | (h) Except as provided in subsection (h-1), the use, in | ||||||
| 5 | this State, of a motor vehicle that was sold in this State to a | ||||||
| 6 | nonresident, even though the motor vehicle is delivered to the | ||||||
| 7 | nonresident in this State, if the motor vehicle is not to be | ||||||
| 8 | titled in this State, and if a drive-away permit is issued to | ||||||
| 9 | the motor vehicle as provided in Section 3-603 of the Illinois | ||||||
| 10 | Vehicle Code or if the nonresident purchaser has vehicle | ||||||
| 11 | registration plates to transfer to the motor vehicle upon | ||||||
| 12 | returning to his or her home state. The issuance of the | ||||||
| 13 | drive-away permit or having the out-of-state registration | ||||||
| 14 | plates to be transferred shall be prima facie evidence that | ||||||
| 15 | the motor vehicle will not be titled in this State. | ||||||
| 16 | (h-1) The exemption under subsection (h) does not apply if | ||||||
| 17 | the state in which the motor vehicle will be titled does not | ||||||
| 18 | allow a reciprocal exemption for the use in that state of a | ||||||
| 19 | motor vehicle sold and delivered in that state to an Illinois | ||||||
| 20 | resident but titled in Illinois. The tax collected under this | ||||||
| 21 | Act on the sale of a motor vehicle in this State to a resident | ||||||
| 22 | of another state that does not allow a reciprocal exemption | ||||||
| 23 | shall be imposed at a rate equal to the state's rate of tax on | ||||||
| 24 | taxable property in the state in which the purchaser is a | ||||||
| 25 | resident, except that the tax shall not exceed the tax that | ||||||
| 26 | would otherwise be imposed under this Act. At the time of the | ||||||
| |||||||
| |||||||
| 1 | sale, the purchaser shall execute a statement, signed under | ||||||
| 2 | penalty of perjury, of his or her intent to title the vehicle | ||||||
| 3 | in the state in which the purchaser is a resident within 30 | ||||||
| 4 | days after the sale and of the fact of the payment to the State | ||||||
| 5 | of Illinois of tax in an amount equivalent to the state's rate | ||||||
| 6 | of tax on taxable property in his or her state of residence and | ||||||
| 7 | shall submit the statement to the appropriate tax collection | ||||||
| 8 | agency in his or her state of residence. In addition, the | ||||||
| 9 | retailer must retain a signed copy of the statement in his or | ||||||
| 10 | her records. Nothing in this subsection shall be construed to | ||||||
| 11 | require the removal of the vehicle from this state following | ||||||
| 12 | the filing of an intent to title the vehicle in the purchaser's | ||||||
| 13 | state of residence if the purchaser titles the vehicle in his | ||||||
| 14 | or her state of residence within 30 days after the date of | ||||||
| 15 | sale. The tax collected under this Act in accordance with this | ||||||
| 16 | subsection (h-1) shall be proportionately distributed as if | ||||||
| 17 | the tax were collected at the 6.25% general rate imposed under | ||||||
| 18 | this Act. | ||||||
| 19 | (h-2) The following exemptions apply with respect to | ||||||
| 20 | certain aircraft: | ||||||
| 21 | (1) Beginning on July 1, 2007, no tax is imposed under | ||||||
| 22 | this Act on the purchase of an aircraft, as defined in | ||||||
| 23 | Section 3 of the Illinois Aeronautics Act, if all of the | ||||||
| 24 | following conditions are met: | ||||||
| 25 | (A) the aircraft leaves this State within 15 days | ||||||
| 26 | after the later of either the issuance of the final | ||||||
| |||||||
| |||||||
| 1 | billing for the purchase of the aircraft or the | ||||||
| 2 | authorized approval for return to service, completion | ||||||
| 3 | of the maintenance record entry, and completion of the | ||||||
| 4 | test flight and ground test for inspection, as | ||||||
| 5 | required by 14 C.F.R. 91.407; | ||||||
| 6 | (B) the aircraft is not based or registered in | ||||||
| 7 | this State after the purchase of the aircraft; and | ||||||
| 8 | (C) the purchaser provides the Department with a | ||||||
| 9 | signed and dated certification, on a form prescribed | ||||||
| 10 | by the Department, certifying that the requirements of | ||||||
| 11 | this item (1) are met. The certificate must also | ||||||
| 12 | include the name and address of the purchaser, the | ||||||
| 13 | address of the location where the aircraft is to be | ||||||
| 14 | titled or registered, the address of the primary | ||||||
| 15 | physical location of the aircraft, and other | ||||||
| 16 | information that the Department may reasonably | ||||||
| 17 | require. | ||||||
| 18 | (2) Beginning on July 1, 2007, no tax is imposed under | ||||||
| 19 | this Act on the use of an aircraft, as defined in Section 3 | ||||||
| 20 | of the Illinois Aeronautics Act, that is temporarily | ||||||
| 21 | located in this State for the purpose of a prepurchase | ||||||
| 22 | evaluation if all of the following conditions are met: | ||||||
| 23 | (A) the aircraft is not based or registered in | ||||||
| 24 | this State after the prepurchase evaluation; and | ||||||
| 25 | (B) the purchaser provides the Department with a | ||||||
| 26 | signed and dated certification, on a form prescribed | ||||||
| |||||||
| |||||||
| 1 | by the Department, certifying that the requirements of | ||||||
| 2 | this item (2) are met. The certificate must also | ||||||
| 3 | include the name and address of the purchaser, the | ||||||
| 4 | address of the location where the aircraft is to be | ||||||
| 5 | titled or registered, the address of the primary | ||||||
| 6 | physical location of the aircraft, and other | ||||||
| 7 | information that the Department may reasonably | ||||||
| 8 | require. | ||||||
| 9 | (3) Beginning on July 1, 2007, no tax is imposed under | ||||||
| 10 | this Act on the use of an aircraft, as defined in Section 3 | ||||||
| 11 | of the Illinois Aeronautics Act, that is temporarily | ||||||
| 12 | located in this State for the purpose of a post-sale | ||||||
| 13 | customization if all of the following conditions are met: | ||||||
| 14 | (A) the aircraft leaves this State within 15 days | ||||||
| 15 | after the authorized approval for return to service, | ||||||
| 16 | completion of the maintenance record entry, and | ||||||
| 17 | completion of the test flight and ground test for | ||||||
| 18 | inspection, as required by 14 C.F.R. 91.407; | ||||||
| 19 | (B) the aircraft is not based or registered in | ||||||
| 20 | this State either before or after the post-sale | ||||||
| 21 | customization; and | ||||||
| 22 | (C) the purchaser provides the Department with a | ||||||
| 23 | signed and dated certification, on a form prescribed | ||||||
| 24 | by the Department, certifying that the requirements of | ||||||
| 25 | this item (3) are met. The certificate must also | ||||||
| 26 | include the name and address of the purchaser, the | ||||||
| |||||||
| |||||||
| 1 | address of the location where the aircraft is to be | ||||||
| 2 | titled or registered, the address of the primary | ||||||
| 3 | physical location of the aircraft, and other | ||||||
| 4 | information that the Department may reasonably | ||||||
| 5 | require. | ||||||
| 6 | If tax becomes due under this subsection (h-2) because of | ||||||
| 7 | the purchaser's use of the aircraft in this State, the | ||||||
| 8 | purchaser shall file a return with the Department and pay the | ||||||
| 9 | tax on the fair market value of the aircraft. This return and | ||||||
| 10 | payment of the tax must be made no later than 30 days after the | ||||||
| 11 | aircraft is used in a taxable manner in this State. The tax is | ||||||
| 12 | based on the fair market value of the aircraft on the date that | ||||||
| 13 | it is first used in a taxable manner in this State. | ||||||
| 14 | For purposes of this subsection (h-2): | ||||||
| 15 | "Based in this State" means hangared, stored, or otherwise | ||||||
| 16 | used, excluding post-sale customizations as defined in this | ||||||
| 17 | Section, for 10 or more days in each 12-month period | ||||||
| 18 | immediately following the date of the sale of the aircraft. | ||||||
| 19 | "Post-sale customization" means any improvement, | ||||||
| 20 | maintenance, or repair that is performed on an aircraft | ||||||
| 21 | following a transfer of ownership of the aircraft. | ||||||
| 22 | "Prepurchase evaluation" means an examination of an | ||||||
| 23 | aircraft to provide a potential purchaser with information | ||||||
| 24 | relevant to the potential purchase. | ||||||
| 25 | "Registered in this State" means an aircraft registered | ||||||
| 26 | with the Department of Transportation, Aeronautics Division, | ||||||
| |||||||
| |||||||
| 1 | or titled or registered with the Federal Aviation | ||||||
| 2 | Administration to an address located in this State. | ||||||
| 3 | This subsection (h-2) is exempt from the provisions of | ||||||
| 4 | Section 3-90. | ||||||
| 5 | (i) Beginning July 1, 1999, the use, in this State, of fuel | ||||||
| 6 | acquired outside this State and brought into this State in the | ||||||
| 7 | fuel supply tanks of locomotives engaged in freight hauling | ||||||
| 8 | and passenger service for interstate commerce. This subsection | ||||||
| 9 | is exempt from the provisions of Section 3-90. | ||||||
| 10 | (j) Beginning on January 1, 2002 and through June 30, | ||||||
| 11 | 2016, the use of tangible personal property purchased from an | ||||||
| 12 | Illinois retailer by a taxpayer engaged in centralized | ||||||
| 13 | purchasing activities in Illinois who will, upon receipt of | ||||||
| 14 | the property in Illinois, temporarily store the property in | ||||||
| 15 | Illinois (i) for the purpose of subsequently transporting it | ||||||
| 16 | outside this State for use or consumption thereafter solely | ||||||
| 17 | outside this State or (ii) for the purpose of being processed, | ||||||
| 18 | fabricated, or manufactured into, attached to, or incorporated | ||||||
| 19 | into other tangible personal property to be transported | ||||||
| 20 | outside this State and thereafter used or consumed solely | ||||||
| 21 | outside this State. The Director of Revenue shall, pursuant to | ||||||
| 22 | rules adopted in accordance with the Illinois Administrative | ||||||
| 23 | Procedure Act, issue a permit to any taxpayer in good standing | ||||||
| 24 | with the Department who is eligible for the exemption under | ||||||
| 25 | this subsection (j). The permit issued under this subsection | ||||||
| 26 | (j) shall authorize the holder, to the extent and in the manner | ||||||
| |||||||
| |||||||
| 1 | specified in the rules adopted under this Act, to purchase | ||||||
| 2 | tangible personal property from a retailer exempt from the | ||||||
| 3 | taxes imposed by this Act. Taxpayers shall maintain all | ||||||
| 4 | necessary books and records to substantiate the use and | ||||||
| 5 | consumption of all such tangible personal property outside of | ||||||
| 6 | the State of Illinois. | ||||||
| 7 | (Source: P.A. 100-321, eff. 8-24-17.)
| ||||||
| 8 | (35 ILCS 105/9) (from Ch. 120, par. 439.9) | ||||||
| 9 | Sec. 9. Except as to motor vehicles, watercraft, aircraft, | ||||||
| 10 | and trailers that are required to be registered with an agency | ||||||
| 11 | of this State, each retailer required or authorized to collect | ||||||
| 12 | the tax imposed by this Act shall pay to the Department the | ||||||
| 13 | amount of such tax (except as otherwise provided) at the time | ||||||
| 14 | when he is required to file his return for the period during | ||||||
| 15 | which such tax was collected, less a discount of 2.1% prior to | ||||||
| 16 | January 1, 1990, and 1.75% on and after January 1, 1990, or $5 | ||||||
| 17 | per calendar year, whichever is greater, which is allowed to | ||||||
| 18 | reimburse the retailer for expenses incurred in collecting the | ||||||
| 19 | tax, keeping records, preparing and filing returns, remitting | ||||||
| 20 | the tax and supplying data to the Department on request. When | ||||||
| 21 | determining the discount allowed under this Section, retailers | ||||||
| 22 | shall include the amount of tax that would have been due at the | ||||||
| 23 | 6.25% rate but for the 1.25% rate imposed on sales tax holiday | ||||||
| 24 | items under Public Act 102-700. The discount under this | ||||||
| 25 | Section is not allowed for the 1.25% portion of taxes paid on | ||||||
| |||||||
| |||||||
| 1 | aviation fuel that is subject to the revenue use requirements | ||||||
| 2 | of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. When determining | ||||||
| 3 | the discount allowed under this Section, retailers shall | ||||||
| 4 | include the amount of tax that would have been due at the 1% | ||||||
| 5 | rate but for the 0% rate imposed under Public Act 102-700. In | ||||||
| 6 | the case of retailers who report and pay the tax on a | ||||||
| 7 | transaction by transaction basis, as provided in this Section, | ||||||
| 8 | such discount shall be taken with each such tax remittance | ||||||
| 9 | instead of when such retailer files his periodic return. The | ||||||
| 10 | discount allowed under this Section is allowed only for | ||||||
| 11 | returns that are filed in the manner required by this Act. The | ||||||
| 12 | Department may disallow the discount for retailers whose | ||||||
| 13 | certificate of registration is revoked at the time the return | ||||||
| 14 | is filed, but only if the Department's decision to revoke the | ||||||
| 15 | certificate of registration has become final. A retailer need | ||||||
| 16 | not remit that part of any tax collected by him to the extent | ||||||
| 17 | that he is required to remit and does remit the tax imposed by | ||||||
| 18 | the Retailers' Occupation Tax Act, with respect to the sale of | ||||||
| 19 | the same property. | ||||||
| 20 | Where such tangible personal property is sold under a | ||||||
| 21 | conditional sales contract, or under any other form of sale | ||||||
| 22 | wherein the payment of the principal sum, or a part thereof, is | ||||||
| 23 | extended beyond the close of the period for which the return is | ||||||
| 24 | filed, the retailer, in collecting the tax (except as to motor | ||||||
| 25 | vehicles, watercraft, aircraft, and trailers that are required | ||||||
| 26 | to be registered with an agency of this State), may collect for | ||||||
| |||||||
| |||||||
| 1 | each tax return period, only the tax applicable to that part of | ||||||
| 2 | the selling price actually received during such tax return | ||||||
| 3 | period. | ||||||
| 4 | In the case of leases, except as otherwise provided in | ||||||
| 5 | this Act, the lessor, in collecting the tax, may collect for | ||||||
| 6 | each tax return period, only the tax applicable to that part of | ||||||
| 7 | the selling price actually received during such tax return | ||||||
| 8 | period. | ||||||
| 9 | Except as provided in this Section, on or before the | ||||||
| 10 | twentieth day of each calendar month, such retailer shall file | ||||||
| 11 | a return for the preceding calendar month. Such return shall | ||||||
| 12 | be filed on forms prescribed by the Department and shall | ||||||
| 13 | furnish such information as the Department may reasonably | ||||||
| 14 | require. The return shall include the gross receipts on food | ||||||
| 15 | for human consumption that is to be consumed off the premises | ||||||
| 16 | where it is sold (other than alcoholic beverages, food | ||||||
| 17 | consisting of or infused with adult use cannabis, soft drinks, | ||||||
| 18 | and food that has been prepared for immediate consumption) | ||||||
| 19 | which were received during the preceding calendar month, | ||||||
| 20 | quarter, or year, as appropriate, and upon which tax would | ||||||
| 21 | have been due but for the 0% rate imposed under Public Act | ||||||
| 22 | 102-700. The return shall also include the amount of tax that | ||||||
| 23 | would have been due on food for human consumption that is to be | ||||||
| 24 | consumed off the premises where it is sold (other than | ||||||
| 25 | alcoholic beverages, food consisting of or infused with adult | ||||||
| 26 | use cannabis, soft drinks, and food that has been prepared for | ||||||
| |||||||
| |||||||
| 1 | immediate consumption) but for the 0% rate imposed under | ||||||
| 2 | Public Act 102-700. | ||||||
| 3 | On and after January 1, 2018, except for returns required | ||||||
| 4 | to be filed prior to January 1, 2023 for motor vehicles, | ||||||
| 5 | watercraft, aircraft, and trailers that are required to be | ||||||
| 6 | registered with an agency of this State, with respect to | ||||||
| 7 | retailers whose annual gross receipts average $20,000 or more, | ||||||
| 8 | all returns required to be filed pursuant to this Act shall be | ||||||
| 9 | filed electronically. On and after January 1, 2023, with | ||||||
| 10 | respect to retailers whose annual gross receipts average | ||||||
| 11 | $20,000 or more, all returns required to be filed pursuant to | ||||||
| 12 | this Act, including, but not limited to, returns for motor | ||||||
| 13 | vehicles, watercraft, aircraft, and trailers that are required | ||||||
| 14 | to be registered with an agency of this State, shall be filed | ||||||
| 15 | electronically. Retailers who demonstrate that they do not | ||||||
| 16 | have access to the Internet or demonstrate hardship in filing | ||||||
| 17 | electronically may petition the Department to waive the | ||||||
| 18 | electronic filing requirement. | ||||||
| 19 | The Department may require returns to be filed on a | ||||||
| 20 | quarterly basis. If so required, a return for each calendar | ||||||
| 21 | quarter shall be filed on or before the twentieth day of the | ||||||
| 22 | calendar month following the end of such calendar quarter. The | ||||||
| 23 | taxpayer shall also file a return with the Department for each | ||||||
| 24 | of the first two months of each calendar quarter, on or before | ||||||
| 25 | the twentieth day of the following calendar month, stating: | ||||||
| 26 | 1. The name of the seller; | ||||||
| |||||||
| |||||||
| 1 | 2. The address of the principal place of business from | ||||||
| 2 | which he engages in the business of selling tangible | ||||||
| 3 | personal property at retail in this State; | ||||||
| 4 | 3. The total amount of taxable receipts received by | ||||||
| 5 | him during the preceding calendar month from sales of | ||||||
| 6 | tangible personal property by him during such preceding | ||||||
| 7 | calendar month, including receipts from charge and time | ||||||
| 8 | sales, but less all deductions allowed by law; | ||||||
| 9 | 4. The amount of credit provided in Section 2d of this | ||||||
| 10 | Act; | ||||||
| 11 | 5. The amount of tax due; | ||||||
| 12 | 5-5. The signature of the taxpayer; and | ||||||
| 13 | 6. Such other reasonable information as the Department | ||||||
| 14 | may require. | ||||||
| 15 | Each retailer required or authorized to collect the tax | ||||||
| 16 | imposed by this Act on aviation fuel sold at retail in this | ||||||
| 17 | State during the preceding calendar month shall, instead of | ||||||
| 18 | reporting and paying tax on aviation fuel as otherwise | ||||||
| 19 | required by this Section, report and pay such tax on a separate | ||||||
| 20 | aviation fuel tax return. The requirements related to the | ||||||
| 21 | return shall be as otherwise provided in this Section. | ||||||
| 22 | Notwithstanding any other provisions of this Act to the | ||||||
| 23 | contrary, retailers collecting tax on aviation fuel shall file | ||||||
| 24 | all aviation fuel tax returns and shall make all aviation fuel | ||||||
| 25 | tax payments by electronic means in the manner and form | ||||||
| 26 | required by the Department. For purposes of this Section, | ||||||
| |||||||
| |||||||
| 1 | "aviation fuel" means jet fuel and aviation gasoline. | ||||||
| 2 | If a taxpayer fails to sign a return within 30 days after | ||||||
| 3 | the proper notice and demand for signature by the Department, | ||||||
| 4 | the return shall be considered valid and any amount shown to be | ||||||
| 5 | due on the return shall be deemed assessed. | ||||||
| 6 | Notwithstanding any other provision of this Act to the | ||||||
| 7 | contrary, retailers subject to tax on cannabis shall file all | ||||||
| 8 | cannabis tax returns and shall make all cannabis tax payments | ||||||
| 9 | by electronic means in the manner and form required by the | ||||||
| 10 | Department. | ||||||
| 11 | Beginning October 1, 1993, a taxpayer who has an average | ||||||
| 12 | monthly tax liability of $150,000 or more shall make all | ||||||
| 13 | payments required by rules of the Department by electronic | ||||||
| 14 | funds transfer. Beginning October 1, 1994, a taxpayer who has | ||||||
| 15 | an average monthly tax liability of $100,000 or more shall | ||||||
| 16 | make all payments required by rules of the Department by | ||||||
| 17 | electronic funds transfer. Beginning October 1, 1995, a | ||||||
| 18 | taxpayer who has an average monthly tax liability of $50,000 | ||||||
| 19 | or more shall make all payments required by rules of the | ||||||
| 20 | Department by electronic funds transfer. Beginning October 1, | ||||||
| 21 | 2000, a taxpayer who has an annual tax liability of $200,000 or | ||||||
| 22 | more shall make all payments required by rules of the | ||||||
| 23 | Department by electronic funds transfer. The term "annual tax | ||||||
| 24 | liability" shall be the sum of the taxpayer's liabilities | ||||||
| 25 | under this Act, and under all other State and local occupation | ||||||
| 26 | and use tax laws administered by the Department, for the | ||||||
| |||||||
| |||||||
| 1 | immediately preceding calendar year. The term "average monthly | ||||||
| 2 | tax liability" means the sum of the taxpayer's liabilities | ||||||
| 3 | under this Act, and under all other State and local occupation | ||||||
| 4 | and use tax laws administered by the Department, for the | ||||||
| 5 | immediately preceding calendar year divided by 12. Beginning | ||||||
| 6 | on October 1, 2002, a taxpayer who has a tax liability in the | ||||||
| 7 | amount set forth in subsection (b) of Section 2505-210 of the | ||||||
| 8 | Department of Revenue Law shall make all payments required by | ||||||
| 9 | rules of the Department by electronic funds transfer. | ||||||
| 10 | Before August 1 of each year beginning in 1993, the | ||||||
| 11 | Department shall notify all taxpayers required to make | ||||||
| 12 | payments by electronic funds transfer. All taxpayers required | ||||||
| 13 | to make payments by electronic funds transfer shall make those | ||||||
| 14 | payments for a minimum of one year beginning on October 1. | ||||||
| 15 | Any taxpayer not required to make payments by electronic | ||||||
| 16 | funds transfer may make payments by electronic funds transfer | ||||||
| 17 | with the permission of the Department. | ||||||
| 18 | All taxpayers required to make payment by electronic funds | ||||||
| 19 | transfer and any taxpayers authorized to voluntarily make | ||||||
| 20 | payments by electronic funds transfer shall make those | ||||||
| 21 | payments in the manner authorized by the Department. | ||||||
| 22 | The Department shall adopt such rules as are necessary to | ||||||
| 23 | effectuate a program of electronic funds transfer and the | ||||||
| 24 | requirements of this Section. | ||||||
| 25 | Before October 1, 2000, if the taxpayer's average monthly | ||||||
| 26 | tax liability to the Department under this Act, the Retailers' | ||||||
| |||||||
| |||||||
| 1 | Occupation Tax Act, the Service Occupation Tax Act, the | ||||||
| 2 | Service Use Tax Act was $10,000 or more during the preceding 4 | ||||||
| 3 | complete calendar quarters, he shall file a return with the | ||||||
| 4 | Department each month by the 20th day of the month next | ||||||
| 5 | following the month during which such tax liability is | ||||||
| 6 | incurred and shall make payments to the Department on or | ||||||
| 7 | before the 7th, 15th, 22nd and last day of the month during | ||||||
| 8 | which such liability is incurred. On and after October 1, | ||||||
| 9 | 2000, if the taxpayer's average monthly tax liability to the | ||||||
| 10 | Department under this Act, the Retailers' Occupation Tax Act, | ||||||
| 11 | the Service Occupation Tax Act, and the Service Use Tax Act was | ||||||
| 12 | $20,000 or more during the preceding 4 complete calendar | ||||||
| 13 | quarters, he shall file a return with the Department each | ||||||
| 14 | month by the 20th day of the month next following the month | ||||||
| 15 | during which such tax liability is incurred and shall make | ||||||
| 16 | payment to the Department on or before the 7th, 15th, 22nd and | ||||||
| 17 | last day of the month during which such liability is incurred. | ||||||
| 18 | If the month during which such tax liability is incurred began | ||||||
| 19 | prior to January 1, 1985, each payment shall be in an amount | ||||||
| 20 | equal to 1/4 of the taxpayer's actual liability for the month | ||||||
| 21 | or an amount set by the Department not to exceed 1/4 of the | ||||||
| 22 | average monthly liability of the taxpayer to the Department | ||||||
| 23 | for the preceding 4 complete calendar quarters (excluding the | ||||||
| 24 | month of highest liability and the month of lowest liability | ||||||
| 25 | in such 4 quarter period). If the month during which such tax | ||||||
| 26 | liability is incurred begins on or after January 1, 1985, and | ||||||
| |||||||
| |||||||
| 1 | prior to January 1, 1987, each payment shall be in an amount | ||||||
| 2 | equal to 22.5% of the taxpayer's actual liability for the | ||||||
| 3 | month or 27.5% of the taxpayer's liability for the same | ||||||
| 4 | calendar month of the preceding year. If the month during | ||||||
| 5 | which such tax liability is incurred begins on or after | ||||||
| 6 | January 1, 1987, and prior to January 1, 1988, each payment | ||||||
| 7 | shall be in an amount equal to 22.5% of the taxpayer's actual | ||||||
| 8 | liability for the month or 26.25% of the taxpayer's liability | ||||||
| 9 | for the same calendar month of the preceding year. If the month | ||||||
| 10 | during which such tax liability is incurred begins on or after | ||||||
| 11 | January 1, 1988, and prior to January 1, 1989, or begins on or | ||||||
| 12 | after January 1, 1996, each payment shall be in an amount equal | ||||||
| 13 | to 22.5% of the taxpayer's actual liability for the month or | ||||||
| 14 | 25% of the taxpayer's liability for the same calendar month of | ||||||
| 15 | the preceding year. If the month during which such tax | ||||||
| 16 | liability is incurred begins on or after January 1, 1989, and | ||||||
| 17 | prior to January 1, 1996, each payment shall be in an amount | ||||||
| 18 | equal to 22.5% of the taxpayer's actual liability for the | ||||||
| 19 | month or 25% of the taxpayer's liability for the same calendar | ||||||
| 20 | month of the preceding year or 100% of the taxpayer's actual | ||||||
| 21 | liability for the quarter monthly reporting period. The amount | ||||||
| 22 | of such quarter monthly payments shall be credited against the | ||||||
| 23 | final tax liability of the taxpayer's return for that month. | ||||||
| 24 | Before October 1, 2000, once applicable, the requirement of | ||||||
| 25 | the making of quarter monthly payments to the Department shall | ||||||
| 26 | continue until such taxpayer's average monthly liability to | ||||||
| |||||||
| |||||||
| 1 | the Department during the preceding 4 complete calendar | ||||||
| 2 | quarters (excluding the month of highest liability and the | ||||||
| 3 | month of lowest liability) is less than $9,000, or until such | ||||||
| 4 | taxpayer's average monthly liability to the Department as | ||||||
| 5 | computed for each calendar quarter of the 4 preceding complete | ||||||
| 6 | calendar quarter period is less than $10,000. However, if a | ||||||
| 7 | taxpayer can show the Department that a substantial change in | ||||||
| 8 | the taxpayer's business has occurred which causes the taxpayer | ||||||
| 9 | to anticipate that his average monthly tax liability for the | ||||||
| 10 | reasonably foreseeable future will fall below the $10,000 | ||||||
| 11 | threshold stated above, then such taxpayer may petition the | ||||||
| 12 | Department for change in such taxpayer's reporting status. On | ||||||
| 13 | and after October 1, 2000, once applicable, the requirement of | ||||||
| 14 | the making of quarter monthly payments to the Department shall | ||||||
| 15 | continue until such taxpayer's average monthly liability to | ||||||
| 16 | the Department during the preceding 4 complete calendar | ||||||
| 17 | quarters (excluding the month of highest liability and the | ||||||
| 18 | month of lowest liability) is less than $19,000 or until such | ||||||
| 19 | taxpayer's average monthly liability to the Department as | ||||||
| 20 | computed for each calendar quarter of the 4 preceding complete | ||||||
| 21 | calendar quarter period is less than $20,000. However, if a | ||||||
| 22 | taxpayer can show the Department that a substantial change in | ||||||
| 23 | the taxpayer's business has occurred which causes the taxpayer | ||||||
| 24 | to anticipate that his average monthly tax liability for the | ||||||
| 25 | reasonably foreseeable future will fall below the $20,000 | ||||||
| 26 | threshold stated above, then such taxpayer may petition the | ||||||
| |||||||
| |||||||
| 1 | Department for a change in such taxpayer's reporting status. | ||||||
| 2 | The Department shall change such taxpayer's reporting status | ||||||
| 3 | unless it finds that such change is seasonal in nature and not | ||||||
| 4 | likely to be long term. Quarter monthly payment status shall | ||||||
| 5 | be determined under this paragraph as if the rate reduction to | ||||||
| 6 | 1.25% in Public Act 102-700 on sales tax holiday items had not | ||||||
| 7 | occurred. For quarter monthly payments due on or after July 1, | ||||||
| 8 | 2023 and through June 30, 2024, "25% of the taxpayer's | ||||||
| 9 | liability for the same calendar month of the preceding year" | ||||||
| 10 | shall be determined as if the rate reduction to 1.25% in Public | ||||||
| 11 | Act 102-700 on sales tax holiday items had not occurred. | ||||||
| 12 | Quarter monthly payment status shall be determined under this | ||||||
| 13 | paragraph as if the rate reduction to 0% in Public Act 102-700 | ||||||
| 14 | on food for human consumption that is to be consumed off the | ||||||
| 15 | premises where it is sold (other than alcoholic beverages, | ||||||
| 16 | food consisting of or infused with adult use cannabis, soft | ||||||
| 17 | drinks, and food that has been prepared for immediate | ||||||
| 18 | consumption) had not occurred. For quarter monthly payments | ||||||
| 19 | due under this paragraph on or after July 1, 2023 and through | ||||||
| 20 | June 30, 2024, "25% of the taxpayer's liability for the same | ||||||
| 21 | calendar month of the preceding year" shall be determined as | ||||||
| 22 | if the rate reduction to 0% in Public Act 102-700 had not | ||||||
| 23 | occurred. If any such quarter monthly payment is not paid at | ||||||
| 24 | the time or in the amount required by this Section, then the | ||||||
| 25 | taxpayer shall be liable for penalties and interest on the | ||||||
| 26 | difference between the minimum amount due and the amount of | ||||||
| |||||||
| |||||||
| 1 | such quarter monthly payment actually and timely paid, except | ||||||
| 2 | insofar as the taxpayer has previously made payments for that | ||||||
| 3 | month to the Department in excess of the minimum payments | ||||||
| 4 | previously due as provided in this Section. The Department | ||||||
| 5 | shall make reasonable rules and regulations to govern the | ||||||
| 6 | quarter monthly payment amount and quarter monthly payment | ||||||
| 7 | dates for taxpayers who file on other than a calendar monthly | ||||||
| 8 | basis. | ||||||
| 9 | If any such payment provided for in this Section exceeds | ||||||
| 10 | the taxpayer's liabilities under this Act, the Retailers' | ||||||
| 11 | Occupation Tax Act, the Service Occupation Tax Act and the | ||||||
| 12 | Service Use Tax Act, as shown by an original monthly return, | ||||||
| 13 | the Department shall issue to the taxpayer a credit memorandum | ||||||
| 14 | no later than 30 days after the date of payment, which | ||||||
| 15 | memorandum may be submitted by the taxpayer to the Department | ||||||
| 16 | in payment of tax liability subsequently to be remitted by the | ||||||
| 17 | taxpayer to the Department or be assigned by the taxpayer to a | ||||||
| 18 | similar taxpayer under this Act, the Retailers' Occupation Tax | ||||||
| 19 | Act, the Service Occupation Tax Act or the Service Use Tax Act, | ||||||
| 20 | in accordance with reasonable rules and regulations to be | ||||||
| 21 | prescribed by the Department, except that if such excess | ||||||
| 22 | payment is shown on an original monthly return and is made | ||||||
| 23 | after December 31, 1986, no credit memorandum shall be issued, | ||||||
| 24 | unless requested by the taxpayer. If no such request is made, | ||||||
| 25 | the taxpayer may credit such excess payment against tax | ||||||
| 26 | liability subsequently to be remitted by the taxpayer to the | ||||||
| |||||||
| |||||||
| 1 | Department under this Act, the Retailers' Occupation Tax Act, | ||||||
| 2 | the Service Occupation Tax Act or the Service Use Tax Act, in | ||||||
| 3 | accordance with reasonable rules and regulations prescribed by | ||||||
| 4 | the Department. If the Department subsequently determines that | ||||||
| 5 | all or any part of the credit taken was not actually due to the | ||||||
| 6 | taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall | ||||||
| 7 | be reduced by 2.1% or 1.75% of the difference between the | ||||||
| 8 | credit taken and that actually due, and the taxpayer shall be | ||||||
| 9 | liable for penalties and interest on such difference. | ||||||
| 10 | If the retailer is otherwise required to file a monthly | ||||||
| 11 | return and if the retailer's average monthly tax liability to | ||||||
| 12 | the Department does not exceed $200, the Department may | ||||||
| 13 | authorize his returns to be filed on a quarter annual basis, | ||||||
| 14 | with the return for January, February, and March of a given | ||||||
| 15 | year being due by April 20 of such year; with the return for | ||||||
| 16 | April, May and June of a given year being due by July 20 of | ||||||
| 17 | such year; with the return for July, August and September of a | ||||||
| 18 | given year being due by October 20 of such year, and with the | ||||||
| 19 | return for October, November and December of a given year | ||||||
| 20 | being due by January 20 of the following year. | ||||||
| 21 | If the retailer is otherwise required to file a monthly or | ||||||
| 22 | quarterly return and if the retailer's average monthly tax | ||||||
| 23 | liability to the Department does not exceed $50, the | ||||||
| 24 | Department may authorize his returns to be filed on an annual | ||||||
| 25 | basis, with the return for a given year being due by January 20 | ||||||
| 26 | of the following year. | ||||||
| |||||||
| |||||||
| 1 | Such quarter annual and annual returns, as to form and | ||||||
| 2 | substance, shall be subject to the same requirements as | ||||||
| 3 | monthly returns. | ||||||
| 4 | Notwithstanding any other provision in this Act concerning | ||||||
| 5 | the time within which a retailer may file his return, in the | ||||||
| 6 | case of any retailer who ceases to engage in a kind of business | ||||||
| 7 | which makes him responsible for filing returns under this Act, | ||||||
| 8 | such retailer shall file a final return under this Act with the | ||||||
| 9 | Department not more than one month after discontinuing such | ||||||
| 10 | business. | ||||||
| 11 | In addition, with respect to motor vehicles, watercraft, | ||||||
| 12 | aircraft, and trailers that are required to be registered with | ||||||
| 13 | an agency of this State, except as otherwise provided in this | ||||||
| 14 | Section, every retailer selling this kind of tangible personal | ||||||
| 15 | property shall file, with the Department, upon a form to be | ||||||
| 16 | prescribed and supplied by the Department, a separate return | ||||||
| 17 | for each such item of tangible personal property which the | ||||||
| 18 | retailer sells, except that if, in the same transaction, (i) a | ||||||
| 19 | retailer of aircraft, watercraft, motor vehicles or trailers | ||||||
| 20 | transfers more than one aircraft, watercraft, motor vehicle or | ||||||
| 21 | trailer to another aircraft, watercraft, motor vehicle or | ||||||
| 22 | trailer retailer for the purpose of resale or (ii) a retailer | ||||||
| 23 | of aircraft, watercraft, motor vehicles, or trailers transfers | ||||||
| 24 | more than one aircraft, watercraft, motor vehicle, or trailer | ||||||
| 25 | to a purchaser for use as a qualifying rolling stock as | ||||||
| 26 | provided in Section 3-55 of this Act, then that seller may | ||||||
| |||||||
| |||||||
| 1 | report the transfer of all the aircraft, watercraft, motor | ||||||
| 2 | vehicles or trailers involved in that transaction to the | ||||||
| 3 | Department on the same uniform invoice-transaction reporting | ||||||
| 4 | return form. For purposes of this Section, "watercraft" means | ||||||
| 5 | a Class 2, Class 3, or Class 4 watercraft as defined in Section | ||||||
| 6 | 3-2 of the Boat Registration and Safety Act, a personal | ||||||
| 7 | watercraft, or any boat equipped with an inboard motor. | ||||||
| 8 | In addition, with respect to motor vehicles, watercraft, | ||||||
| 9 | aircraft, and trailers that are required to be registered with | ||||||
| 10 | an agency of this State, every person who is engaged in the | ||||||
| 11 | business of leasing or renting such items and who, in | ||||||
| 12 | connection with such business, sells any such item to a | ||||||
| 13 | retailer for the purpose of resale is, notwithstanding any | ||||||
| 14 | other provision of this Section to the contrary, authorized to | ||||||
| 15 | meet the return-filing requirement of this Act by reporting | ||||||
| 16 | the transfer of all the aircraft, watercraft, motor vehicles, | ||||||
| 17 | or trailers transferred for resale during a month to the | ||||||
| 18 | Department on the same uniform invoice-transaction reporting | ||||||
| 19 | return form on or before the 20th of the month following the | ||||||
| 20 | month in which the transfer takes place. Notwithstanding any | ||||||
| 21 | other provision of this Act to the contrary, all returns filed | ||||||
| 22 | under this paragraph must be filed by electronic means in the | ||||||
| 23 | manner and form as required by the Department. | ||||||
| 24 | The transaction reporting return in the case of motor | ||||||
| 25 | vehicles or trailers that are required to be registered with | ||||||
| 26 | an agency of this State, shall be the same document as the | ||||||
| |||||||
| |||||||
| 1 | Uniform Invoice referred to in Section 5-402 of the Illinois | ||||||
| 2 | Vehicle Code and must show the name and address of the seller; | ||||||
| 3 | the name and address of the purchaser; the amount of the | ||||||
| 4 | selling price including the amount allowed by the retailer for | ||||||
| 5 | traded-in property, if any; the amount allowed by the retailer | ||||||
| 6 | for the traded-in tangible personal property, if any, to the | ||||||
| 7 | extent to which Section 2 of this Act allows an exemption for | ||||||
| 8 | the value of traded-in property; the balance payable after | ||||||
| 9 | deducting such trade-in allowance from the total selling | ||||||
| 10 | price; the amount of tax due from the retailer with respect to | ||||||
| 11 | such transaction; the amount of tax collected from the | ||||||
| 12 | purchaser by the retailer on such transaction (or satisfactory | ||||||
| 13 | evidence that such tax is not due in that particular instance, | ||||||
| 14 | if that is claimed to be the fact); the place and date of the | ||||||
| 15 | sale; a sufficient identification of the property sold; such | ||||||
| 16 | other information as is required in Section 5-402 of the | ||||||
| 17 | Illinois Vehicle Code, and such other information as the | ||||||
| 18 | Department may reasonably require. | ||||||
| 19 | The transaction reporting return in the case of watercraft | ||||||
| 20 | and aircraft must show the name and address of the seller; the | ||||||
| 21 | name and address of the purchaser; the amount of the selling | ||||||
| 22 | price including the amount allowed by the retailer for | ||||||
| 23 | traded-in property, if any; the amount allowed by the retailer | ||||||
| 24 | for the traded-in tangible personal property, if any, to the | ||||||
| 25 | extent to which Section 2 of this Act allows an exemption for | ||||||
| 26 | the value of traded-in property; the balance payable after | ||||||
| |||||||
| |||||||
| 1 | deducting such trade-in allowance from the total selling | ||||||
| 2 | price; the amount of tax due from the retailer with respect to | ||||||
| 3 | such transaction; the amount of tax collected from the | ||||||
| 4 | purchaser by the retailer on such transaction (or satisfactory | ||||||
| 5 | evidence that such tax is not due in that particular instance, | ||||||
| 6 | if that is claimed to be the fact); the place and date of the | ||||||
| 7 | sale, a sufficient identification of the property sold, and | ||||||
| 8 | such other information as the Department may reasonably | ||||||
| 9 | require. | ||||||
| 10 | Such transaction reporting return shall be filed not later | ||||||
| 11 | than 20 days after the date of delivery of the item that is | ||||||
| 12 | being sold, but may be filed by the retailer at any time sooner | ||||||
| 13 | than that if he chooses to do so. The transaction reporting | ||||||
| 14 | return and tax remittance or proof of exemption from the tax | ||||||
| 15 | that is imposed by this Act may be transmitted to the | ||||||
| 16 | Department by way of the State agency with which, or State | ||||||
| 17 | officer with whom, the tangible personal property must be | ||||||
| 18 | titled or registered (if titling or registration is required) | ||||||
| 19 | if the Department and such agency or State officer determine | ||||||
| 20 | that this procedure will expedite the processing of | ||||||
| 21 | applications for title or registration. | ||||||
| 22 | With each such transaction reporting return, the retailer | ||||||
| 23 | shall remit the proper amount of tax due (or shall submit | ||||||
| 24 | satisfactory evidence that the sale is not taxable if that is | ||||||
| 25 | the case), to the Department or its agents, whereupon the | ||||||
| 26 | Department shall issue, in the purchaser's name, a tax receipt | ||||||
| |||||||
| |||||||
| 1 | (or a certificate of exemption if the Department is satisfied | ||||||
| 2 | that the particular sale is tax exempt) which such purchaser | ||||||
| 3 | may submit to the agency with which, or State officer with | ||||||
| 4 | whom, he must title or register the tangible personal property | ||||||
| 5 | that is involved (if titling or registration is required) in | ||||||
| 6 | support of such purchaser's application for an Illinois | ||||||
| 7 | certificate or other evidence of title or registration to such | ||||||
| 8 | tangible personal property. | ||||||
| 9 | No retailer's failure or refusal to remit tax under this | ||||||
| 10 | Act precludes a user, who has paid the proper tax to the | ||||||
| 11 | retailer, from obtaining his certificate of title or other | ||||||
| 12 | evidence of title or registration (if titling or registration | ||||||
| 13 | is required) upon satisfying the Department that such user has | ||||||
| 14 | paid the proper tax (if tax is due) to the retailer. The | ||||||
| 15 | Department shall adopt appropriate rules to carry out the | ||||||
| 16 | mandate of this paragraph. | ||||||
| 17 | If the user who would otherwise pay tax to the retailer | ||||||
| 18 | wants the transaction reporting return filed and the payment | ||||||
| 19 | of tax or proof of exemption made to the Department before the | ||||||
| 20 | retailer is willing to take these actions and such user has not | ||||||
| 21 | paid the tax to the retailer, such user may certify to the fact | ||||||
| 22 | of such delay by the retailer, and may (upon the Department | ||||||
| 23 | being satisfied of the truth of such certification) transmit | ||||||
| 24 | the information required by the transaction reporting return | ||||||
| 25 | and the remittance for tax or proof of exemption directly to | ||||||
| 26 | the Department and obtain his tax receipt or exemption | ||||||
| |||||||
| |||||||
| 1 | determination, in which event the transaction reporting return | ||||||
| 2 | and tax remittance (if a tax payment was required) shall be | ||||||
| 3 | credited by the Department to the proper retailer's account | ||||||
| 4 | with the Department, but without the 2.1% or 1.75% discount | ||||||
| 5 | provided for in this Section being allowed. When the user pays | ||||||
| 6 | the tax directly to the Department, he shall pay the tax in the | ||||||
| 7 | same amount and in the same form in which it would be remitted | ||||||
| 8 | if the tax had been remitted to the Department by the retailer. | ||||||
| 9 | Where a retailer collects the tax with respect to the | ||||||
| 10 | selling price of tangible personal property which he sells and | ||||||
| 11 | the purchaser thereafter returns such tangible personal | ||||||
| 12 | property and the retailer refunds the selling price thereof to | ||||||
| 13 | the purchaser, such retailer shall also refund, to the | ||||||
| 14 | purchaser, the tax so collected from the purchaser. When | ||||||
| 15 | filing his return for the period in which he refunds such tax | ||||||
| 16 | to the purchaser, the retailer may deduct the amount of the tax | ||||||
| 17 | so refunded by him to the purchaser from any other use tax | ||||||
| 18 | which such retailer may be required to pay or remit to the | ||||||
| 19 | Department, as shown by such return, if the amount of the tax | ||||||
| 20 | to be deducted was previously remitted to the Department by | ||||||
| 21 | such retailer. If the retailer has not previously remitted the | ||||||
| 22 | amount of such tax to the Department, he is entitled to no | ||||||
| 23 | deduction under this Act upon refunding such tax to the | ||||||
| 24 | purchaser. | ||||||
| 25 | Any retailer filing a return under this Section shall also | ||||||
| 26 | include (for the purpose of paying tax thereon) the total tax | ||||||
| |||||||
| |||||||
| 1 | covered by such return upon the selling price of tangible | ||||||
| 2 | personal property purchased by him at retail from a retailer, | ||||||
| 3 | but as to which the tax imposed by this Act was not collected | ||||||
| 4 | from the retailer filing such return, and such retailer shall | ||||||
| 5 | remit the amount of such tax to the Department when filing such | ||||||
| 6 | return. | ||||||
| 7 | If experience indicates such action to be practicable, the | ||||||
| 8 | Department may prescribe and furnish a combination or joint | ||||||
| 9 | return which will enable retailers, who are required to file | ||||||
| 10 | returns hereunder and also under the Retailers' Occupation Tax | ||||||
| 11 | Act, to furnish all the return information required by both | ||||||
| 12 | Acts on the one form. | ||||||
| 13 | Where the retailer has more than one business registered | ||||||
| 14 | with the Department under separate registration under this | ||||||
| 15 | Act, such retailer may not file each return that is due as a | ||||||
| 16 | single return covering all such registered businesses, but | ||||||
| 17 | shall file separate returns for each such registered business. | ||||||
| 18 | Beginning January 1, 1990, each month the Department shall | ||||||
| 19 | pay into the State and Local Sales Tax Reform Fund, a special | ||||||
| 20 | fund in the State Treasury which is hereby created, the net | ||||||
| 21 | revenue realized for the preceding month from the 1% tax | ||||||
| 22 | imposed under this Act. | ||||||
| 23 | Beginning January 1, 1990, each month the Department shall | ||||||
| 24 | pay into the County and Mass Transit District Fund 4% of the | ||||||
| 25 | net revenue realized for the preceding month from the 6.25% | ||||||
| 26 | general rate on the selling price of tangible personal | ||||||
| |||||||
| |||||||
| 1 | property which is purchased outside Illinois at retail from a | ||||||
| 2 | retailer and which is titled or registered by an agency of this | ||||||
| 3 | State's government. | ||||||
| 4 | Beginning January 1, 1990, each month the Department shall | ||||||
| 5 | pay into the State and Local Sales Tax Reform Fund, a special | ||||||
| 6 | fund in the State Treasury, 20% of the net revenue realized for | ||||||
| 7 | the preceding month from the 6.25% general rate on the selling | ||||||
| 8 | price of tangible personal property, other than (i) tangible | ||||||
| 9 | personal property which is purchased outside Illinois at | ||||||
| 10 | retail from a retailer and which is titled or registered by an | ||||||
| 11 | agency of this State's government and (ii) aviation fuel sold | ||||||
| 12 | on or after December 1, 2019. This exception for aviation fuel | ||||||
| 13 | only applies for so long as the revenue use requirements of 49 | ||||||
| 14 | U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State. | ||||||
| 15 | For aviation fuel sold on or after December 1, 2019, each | ||||||
| 16 | month the Department shall pay into the State Aviation Program | ||||||
| 17 | Fund 20% of the net revenue realized for the preceding month | ||||||
| 18 | from the 6.25% general rate on the selling price of aviation | ||||||
| 19 | fuel, less an amount estimated by the Department to be | ||||||
| 20 | required for refunds of the 20% portion of the tax on aviation | ||||||
| 21 | fuel under this Act, which amount shall be deposited into the | ||||||
| 22 | Aviation Fuel Sales Tax Refund Fund. The Department shall only | ||||||
| 23 | pay moneys into the State Aviation Program Fund and the | ||||||
| 24 | Aviation Fuels Sales Tax Refund Fund under this Act for so long | ||||||
| 25 | as the revenue use requirements of 49 U.S.C. 47107(b) and 49 | ||||||
| 26 | U.S.C. 47133 are binding on the State. | ||||||
| |||||||
| |||||||
| 1 | Beginning August 1, 2000, each month the Department shall | ||||||
| 2 | pay into the State and Local Sales Tax Reform Fund 100% of the | ||||||
| 3 | net revenue realized for the preceding month from the 1.25% | ||||||
| 4 | rate on the selling price of motor fuel and gasohol. If, in any | ||||||
| 5 | month, the tax on sales tax holiday items, as defined in | ||||||
| 6 | Section 3-6, is imposed at the rate of 1.25%, then the | ||||||
| 7 | Department shall pay 100% of the net revenue realized for that | ||||||
| 8 | month from the 1.25% rate on the selling price of sales tax | ||||||
| 9 | holiday items into the State and Local Sales Tax Reform Fund. | ||||||
| 10 | Beginning January 1, 1990, each month the Department shall | ||||||
| 11 | pay into the Local Government Tax Fund 16% of the net revenue | ||||||
| 12 | realized for the preceding month from the 6.25% general rate | ||||||
| 13 | on the selling price of tangible personal property which is | ||||||
| 14 | purchased outside Illinois at retail from a retailer and which | ||||||
| 15 | is titled or registered by an agency of this State's | ||||||
| 16 | government. | ||||||
| 17 | Beginning October 1, 2009, each month the Department shall | ||||||
| 18 | pay into the Capital Projects Fund an amount that is equal to | ||||||
| 19 | an amount estimated by the Department to represent 80% of the | ||||||
| 20 | net revenue realized for the preceding month from the sale of | ||||||
| 21 | candy, grooming and hygiene products, and soft drinks that had | ||||||
| 22 | been taxed at a rate of 1% prior to September 1, 2009 but that | ||||||
| 23 | are now taxed at 6.25%. | ||||||
| 24 | Beginning July 1, 2011, each month the Department shall | ||||||
| 25 | pay into the Clean Air Act Permit Fund 80% of the net revenue | ||||||
| 26 | realized for the preceding month from the 6.25% general rate | ||||||
| |||||||
| |||||||
| 1 | on the selling price of sorbents used in Illinois in the | ||||||
| 2 | process of sorbent injection as used to comply with the | ||||||
| 3 | Environmental Protection Act or the federal Clean Air Act, but | ||||||
| 4 | the total payment into the Clean Air Act Permit Fund under this | ||||||
| 5 | Act and the Retailers' Occupation Tax Act shall not exceed | ||||||
| 6 | $2,000,000 in any fiscal year. | ||||||
| 7 | Beginning July 1, 2013, each month the Department shall | ||||||
| 8 | pay into the Underground Storage Tank Fund from the proceeds | ||||||
| 9 | collected under this Act, the Service Use Tax Act, the Service | ||||||
| 10 | Occupation Tax Act, and the Retailers' Occupation Tax Act an | ||||||
| 11 | amount equal to the average monthly deficit in the Underground | ||||||
| 12 | Storage Tank Fund during the prior year, as certified annually | ||||||
| 13 | by the Illinois Environmental Protection Agency, but the total | ||||||
| 14 | payment into the Underground Storage Tank Fund under this Act, | ||||||
| 15 | the Service Use Tax Act, the Service Occupation Tax Act, and | ||||||
| 16 | the Retailers' Occupation Tax Act shall not exceed $18,000,000 | ||||||
| 17 | in any State fiscal year. As used in this paragraph, the | ||||||
| 18 | "average monthly deficit" shall be equal to the difference | ||||||
| 19 | between the average monthly claims for payment by the fund and | ||||||
| 20 | the average monthly revenues deposited into the fund, | ||||||
| 21 | excluding payments made pursuant to this paragraph. | ||||||
| 22 | Beginning July 1, 2015, of the remainder of the moneys | ||||||
| 23 | received by the Department under this Act, the Service Use Tax | ||||||
| 24 | Act, the Service Occupation Tax Act, and the Retailers' | ||||||
| 25 | Occupation Tax Act, each month the Department shall deposit | ||||||
| 26 | $500,000 into the State Crime Laboratory Fund. | ||||||
| |||||||
| |||||||
| 1 | Of the remainder of the moneys received by the Department | ||||||
| 2 | pursuant to this Act, (a) 1.75% thereof shall be paid into the | ||||||
| 3 | Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on | ||||||
| 4 | and after July 1, 1989, 3.8% thereof shall be paid into the | ||||||
| 5 | Build Illinois Fund; provided, however, that if in any fiscal | ||||||
| 6 | year the sum of (1) the aggregate of 2.2% or 3.8%, as the case | ||||||
| 7 | may be, of the moneys received by the Department and required | ||||||
| 8 | to be paid into the Build Illinois Fund pursuant to Section 3 | ||||||
| 9 | of the Retailers' Occupation Tax Act, Section 9 of the Use Tax | ||||||
| 10 | Act, Section 9 of the Service Use Tax Act, and Section 9 of the | ||||||
| 11 | Service Occupation Tax Act, such Acts being hereinafter called | ||||||
| 12 | the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case | ||||||
| 13 | may be, of moneys being hereinafter called the "Tax Act | ||||||
| 14 | Amount", and (2) the amount transferred to the Build Illinois | ||||||
| 15 | Fund from the State and Local Sales Tax Reform Fund shall be | ||||||
| 16 | less than the Annual Specified Amount (as defined in Section 3 | ||||||
| 17 | of the Retailers' Occupation Tax Act), an amount equal to the | ||||||
| 18 | difference shall be immediately paid into the Build Illinois | ||||||
| 19 | Fund from other moneys received by the Department pursuant to | ||||||
| 20 | the Tax Acts; and further provided, that if on the last | ||||||
| 21 | business day of any month the sum of (1) the Tax Act Amount | ||||||
| 22 | required to be deposited into the Build Illinois Bond Account | ||||||
| 23 | in the Build Illinois Fund during such month and (2) the amount | ||||||
| 24 | transferred during such month to the Build Illinois Fund from | ||||||
| 25 | the State and Local Sales Tax Reform Fund shall have been less | ||||||
| 26 | than 1/12 of the Annual Specified Amount, an amount equal to | ||||||
| |||||||
| |||||||
| 1 | the difference shall be immediately paid into the Build | ||||||
| 2 | Illinois Fund from other moneys received by the Department | ||||||
| 3 | pursuant to the Tax Acts; and, further provided, that in no | ||||||
| 4 | event shall the payments required under the preceding proviso | ||||||
| 5 | result in aggregate payments into the Build Illinois Fund | ||||||
| 6 | pursuant to this clause (b) for any fiscal year in excess of | ||||||
| 7 | the greater of (i) the Tax Act Amount or (ii) the Annual | ||||||
| 8 | Specified Amount for such fiscal year; and, further provided, | ||||||
| 9 | that the amounts payable into the Build Illinois Fund under | ||||||
| 10 | this clause (b) shall be payable only until such time as the | ||||||
| 11 | aggregate amount on deposit under each trust indenture | ||||||
| 12 | securing Bonds issued and outstanding pursuant to the Build | ||||||
| 13 | Illinois Bond Act is sufficient, taking into account any | ||||||
| 14 | future investment income, to fully provide, in accordance with | ||||||
| 15 | such indenture, for the defeasance of or the payment of the | ||||||
| 16 | principal of, premium, if any, and interest on the Bonds | ||||||
| 17 | secured by such indenture and on any Bonds expected to be | ||||||
| 18 | issued thereafter and all fees and costs payable with respect | ||||||
| 19 | thereto, all as certified by the Director of the Bureau of the | ||||||
| 20 | Budget (now Governor's Office of Management and Budget). If on | ||||||
| 21 | the last business day of any month in which Bonds are | ||||||
| 22 | outstanding pursuant to the Build Illinois Bond Act, the | ||||||
| 23 | aggregate of the moneys deposited in the Build Illinois Bond | ||||||
| 24 | Account in the Build Illinois Fund in such month shall be less | ||||||
| 25 | than the amount required to be transferred in such month from | ||||||
| 26 | the Build Illinois Bond Account to the Build Illinois Bond | ||||||
| |||||||
| |||||||
| 1 | Retirement and Interest Fund pursuant to Section 13 of the | ||||||
| 2 | Build Illinois Bond Act, an amount equal to such deficiency | ||||||
| 3 | shall be immediately paid from other moneys received by the | ||||||
| 4 | Department pursuant to the Tax Acts to the Build Illinois | ||||||
| 5 | Fund; provided, however, that any amounts paid to the Build | ||||||
| 6 | Illinois Fund in any fiscal year pursuant to this sentence | ||||||
| 7 | shall be deemed to constitute payments pursuant to clause (b) | ||||||
| 8 | of the preceding sentence and shall reduce the amount | ||||||
| 9 | otherwise payable for such fiscal year pursuant to clause (b) | ||||||
| 10 | of the preceding sentence. The moneys received by the | ||||||
| 11 | Department pursuant to this Act and required to be deposited | ||||||
| 12 | into the Build Illinois Fund are subject to the pledge, claim | ||||||
| 13 | and charge set forth in Section 12 of the Build Illinois Bond | ||||||
| 14 | Act. | ||||||
| 15 | Subject to payment of amounts into the Build Illinois Fund | ||||||
| 16 | as provided in the preceding paragraph or in any amendment | ||||||
| 17 | thereto hereafter enacted, the following specified monthly | ||||||
| 18 | installment of the amount requested in the certificate of the | ||||||
| 19 | Chairman of the Metropolitan Pier and Exposition Authority | ||||||
| 20 | provided under Section 8.25f of the State Finance Act, but not | ||||||
| 21 | in excess of the sums designated as "Total Deposit", shall be | ||||||
| 22 | deposited in the aggregate from collections under Section 9 of | ||||||
| 23 | the Use Tax Act, Section 9 of the Service Use Tax Act, Section | ||||||
| 24 | 9 of the Service Occupation Tax Act, and Section 3 of the | ||||||
| 25 | Retailers' Occupation Tax Act into the McCormick Place | ||||||
| 26 | Expansion Project Fund in the specified fiscal years. | ||||||
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| |||||||
| |||||||
| 2 | Beginning July 20, 1993 and in each month of each fiscal | ||||||
| 3 | year thereafter, one-eighth of the amount requested in the | ||||||
| 4 | certificate of the Chairman of the Metropolitan Pier and | ||||||
| 5 | Exposition Authority for that fiscal year, less the amount | ||||||
| 6 | deposited into the McCormick Place Expansion Project Fund by | ||||||
| 7 | the State Treasurer in the respective month under subsection | ||||||
| 8 | (g) of Section 13 of the Metropolitan Pier and Exposition | ||||||
| 9 | Authority Act, plus cumulative deficiencies in the deposits | ||||||
| 10 | required under this Section for previous months and years, | ||||||
| 11 | shall be deposited into the McCormick Place Expansion Project | ||||||
| 12 | Fund, until the full amount requested for the fiscal year, but | ||||||
| 13 | not in excess of the amount specified above as "Total | ||||||
| 14 | Deposit", has been deposited. | ||||||
| 15 | Subject to payment of amounts into the Capital Projects | ||||||
| 16 | Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, | ||||||
| 17 | and the McCormick Place Expansion Project Fund pursuant to the | ||||||
| 18 | preceding paragraphs or in any amendments thereto hereafter | ||||||
| 19 | enacted, for aviation fuel sold on or after December 1, 2019, | ||||||
| 20 | the Department shall each month deposit into the Aviation Fuel | ||||||
| 21 | Sales Tax Refund Fund an amount estimated by the Department to | ||||||
| 22 | be required for refunds of the 80% portion of the tax on | ||||||
| 23 | aviation fuel under this Act. The Department shall only | ||||||
| 24 | deposit moneys into the Aviation Fuel Sales Tax Refund Fund | ||||||
| 25 | under this paragraph for so long as the revenue use | ||||||
| 26 | requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are | ||||||
| |||||||
| |||||||
| 1 | binding on the State. | ||||||
| 2 | Subject to payment of amounts into the Build Illinois Fund | ||||||
| 3 | and the McCormick Place Expansion Project Fund pursuant to the | ||||||
| 4 | preceding paragraphs or in any amendments thereto hereafter | ||||||
| 5 | enacted, beginning July 1, 1993 and ending on September 30, | ||||||
| 6 | 2013, the Department shall each month pay into the Illinois | ||||||
| 7 | Tax Increment Fund 0.27% of 80% of the net revenue realized for | ||||||
| 8 | the preceding month from the 6.25% general rate on the selling | ||||||
| 9 | price of tangible personal property. | ||||||
| 10 | Subject to payment of amounts into the Build Illinois | ||||||
| 11 | Fund, the McCormick Place Expansion Project Fund, the Illinois | ||||||
| 12 | Tax Increment Fund, and the Energy Infrastructure Fund | ||||||
| 13 | pursuant to the preceding paragraphs or in any amendments to | ||||||
| 14 | this Section hereafter enacted, beginning on the first day of | ||||||
| 15 | the first calendar month to occur on or after August 26, 2014 | ||||||
| 16 | (the effective date of Public Act 98-1098), each month, from | ||||||
| 17 | the collections made under Section 9 of the Use Tax Act, | ||||||
| 18 | Section 9 of the Service Use Tax Act, Section 9 of the Service | ||||||
| 19 | Occupation Tax Act, and Section 3 of the Retailers' Occupation | ||||||
| 20 | Tax Act, the Department shall pay into the Tax Compliance and | ||||||
| 21 | Administration Fund, to be used, subject to appropriation, to | ||||||
| 22 | fund additional auditors and compliance personnel at the | ||||||
| 23 | Department of Revenue, an amount equal to 1/12 of 5% of 80% of | ||||||
| 24 | the cash receipts collected during the preceding fiscal year | ||||||
| 25 | by the Audit Bureau of the Department under the Use Tax Act, | ||||||
| 26 | the Service Use Tax Act, the Service Occupation Tax Act, the | ||||||
| |||||||
| |||||||
| 1 | Retailers' Occupation Tax Act, and associated local occupation | ||||||
| 2 | and use taxes administered by the Department. | ||||||
| 3 | Subject to payments of amounts into the Build Illinois | ||||||
| 4 | Fund, the McCormick Place Expansion Project Fund, the Illinois | ||||||
| 5 | Tax Increment Fund, and the Tax Compliance and Administration | ||||||
| 6 | Fund as provided in this Section, beginning on July 1, 2018 the | ||||||
| 7 | Department shall pay each month into the Downstate Public | ||||||
| 8 | Transportation Fund the moneys required to be so paid under | ||||||
| 9 | Section 2-3 of the Downstate Public Transportation Act. | ||||||
| 10 | Subject to successful execution and delivery of a | ||||||
| 11 | public-private agreement between the public agency and private | ||||||
| 12 | entity and completion of the civic build, beginning on July 1, | ||||||
| 13 | 2023, of the remainder of the moneys received by the | ||||||
| 14 | Department under the Use Tax Act, the Service Use Tax Act, the | ||||||
| 15 | Service Occupation Tax Act, and this Act, the Department shall | ||||||
| 16 | deposit the following specified deposits in the aggregate from | ||||||
| 17 | collections under the Use Tax Act, the Service Use Tax Act, the | ||||||
| 18 | Service Occupation Tax Act, and the Retailers' Occupation Tax | ||||||
| 19 | Act, as required under Section 8.25g of the State Finance Act | ||||||
| 20 | for distribution consistent with the Public-Private | ||||||
| 21 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
| 22 | The moneys received by the Department pursuant to this Act and | ||||||
| 23 | required to be deposited into the Civic and Transit | ||||||
| 24 | Infrastructure Fund are subject to the pledge, claim, and | ||||||
| 25 | charge set forth in Section 25-55 of the Public-Private | ||||||
| 26 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
| |||||||
| |||||||
| 1 | As used in this paragraph, "civic build", "private entity", | ||||||
| 2 | "public-private agreement", and "public agency" have the | ||||||
| 3 | meanings provided in Section 25-10 of the Public-Private | ||||||
| 4 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
| 5 | Fiscal Year............................Total Deposit | ||||||
| 6 | 2024....................................$200,000,000 | ||||||
| 7 | 2025....................................$206,000,000 | ||||||
| 8 | 2026....................................$212,200,000 | ||||||
| 9 | 2027....................................$218,500,000 | ||||||
| 10 | 2028....................................$225,100,000 | ||||||
| 11 | 2029....................................$288,700,000 | ||||||
| 12 | 2030....................................$298,900,000 | ||||||
| 13 | 2031....................................$309,300,000 | ||||||
| 14 | 2032....................................$320,100,000 | ||||||
| 15 | 2033....................................$331,200,000 | ||||||
| 16 | 2034....................................$341,200,000 | ||||||
| 17 | 2035....................................$351,400,000 | ||||||
| 18 | 2036....................................$361,900,000 | ||||||
| 19 | 2037....................................$372,800,000 | ||||||
| 20 | 2038....................................$384,000,000 | ||||||
| 21 | 2039....................................$395,500,000 | ||||||
| 22 | 2040....................................$407,400,000 | ||||||
| 23 | 2041....................................$419,600,000 | ||||||
| 24 | 2042....................................$432,200,000 | ||||||
| 25 | 2043....................................$445,100,000 | ||||||
| 26 | Beginning July 1, 2021 and until July 1, 2022, subject to | ||||||
| |||||||
| |||||||
| 1 | the payment of amounts into the State and Local Sales Tax | ||||||
| 2 | Reform Fund, the Build Illinois Fund, the McCormick Place | ||||||
| 3 | Expansion Project Fund, the Illinois Tax Increment Fund, and | ||||||
| 4 | the Tax Compliance and Administration Fund as provided in this | ||||||
| 5 | Section, the Department shall pay each month into the Road | ||||||
| 6 | Fund the amount estimated to represent 16% of the net revenue | ||||||
| 7 | realized from the taxes imposed on motor fuel and gasohol. | ||||||
| 8 | Beginning July 1, 2022 and until July 1, 2023, subject to the | ||||||
| 9 | payment of amounts into the State and Local Sales Tax Reform | ||||||
| 10 | Fund, the Build Illinois Fund, the McCormick Place Expansion | ||||||
| 11 | Project Fund, the Illinois Tax Increment Fund, and the Tax | ||||||
| 12 | Compliance and Administration Fund as provided in this | ||||||
| 13 | Section, the Department shall pay each month into the Road | ||||||
| 14 | Fund the amount estimated to represent 32% of the net revenue | ||||||
| 15 | realized from the taxes imposed on motor fuel and gasohol. | ||||||
| 16 | Beginning July 1, 2023 and until July 1, 2024, subject to the | ||||||
| 17 | payment of amounts into the State and Local Sales Tax Reform | ||||||
| 18 | Fund, the Build Illinois Fund, the McCormick Place Expansion | ||||||
| 19 | Project Fund, the Illinois Tax Increment Fund, and the Tax | ||||||
| 20 | Compliance and Administration Fund as provided in this | ||||||
| 21 | Section, the Department shall pay each month into the Road | ||||||
| 22 | Fund the amount estimated to represent 48% of the net revenue | ||||||
| 23 | realized from the taxes imposed on motor fuel and gasohol. | ||||||
| 24 | Beginning July 1, 2024 and until July 1, 2025, subject to the | ||||||
| 25 | payment of amounts into the State and Local Sales Tax Reform | ||||||
| 26 | Fund, the Build Illinois Fund, the McCormick Place Expansion | ||||||
| |||||||
| |||||||
| 1 | Project Fund, the Illinois Tax Increment Fund, and the Tax | ||||||
| 2 | Compliance and Administration Fund as provided in this | ||||||
| 3 | Section, the Department shall pay each month into the Road | ||||||
| 4 | Fund the amount estimated to represent 64% of the net revenue | ||||||
| 5 | realized from the taxes imposed on motor fuel and gasohol. | ||||||
| 6 | Beginning on July 1, 2025, subject to the payment of amounts | ||||||
| 7 | into the State and Local Sales Tax Reform Fund, the Build | ||||||
| 8 | Illinois Fund, the McCormick Place Expansion Project Fund, the | ||||||
| 9 | Illinois Tax Increment Fund, and the Tax Compliance and | ||||||
| 10 | Administration Fund as provided in this Section, the | ||||||
| 11 | Department shall pay each month into the Road Fund the amount | ||||||
| 12 | estimated to represent 80% of the net revenue realized from | ||||||
| 13 | the taxes imposed on motor fuel and gasohol. As used in this | ||||||
| 14 | paragraph "motor fuel" has the meaning given to that term in | ||||||
| 15 | Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the | ||||||
| 16 | meaning given to that term in Section 3-40 of this Act. | ||||||
| 17 | Of the remainder of the moneys received by the Department | ||||||
| 18 | pursuant to this Act, 75% thereof shall be paid into the State | ||||||
| 19 | Treasury and 25% shall be reserved in a special account and | ||||||
| 20 | used only for the transfer to the Common School Fund as part of | ||||||
| 21 | the monthly transfer from the General Revenue Fund in | ||||||
| 22 | accordance with Section 8a of the State Finance Act. | ||||||
| 23 | As soon as possible after the first day of each month, upon | ||||||
| 24 | certification of the Department of Revenue, the Comptroller | ||||||
| 25 | shall order transferred and the Treasurer shall transfer from | ||||||
| 26 | the General Revenue Fund to the Motor Fuel Tax Fund an amount | ||||||
| |||||||
| |||||||
| 1 | equal to 1.7% of 80% of the net revenue realized under this Act | ||||||
| 2 | for the second preceding month. Beginning April 1, 2000, this | ||||||
| 3 | transfer is no longer required and shall not be made. | ||||||
| 4 | Net revenue realized for a month shall be the revenue | ||||||
| 5 | collected by the State pursuant to this Act, less the amount | ||||||
| 6 | paid out during that month as refunds to taxpayers for | ||||||
| 7 | overpayment of liability. | ||||||
| 8 | For greater simplicity of administration, manufacturers, | ||||||
| 9 | importers and wholesalers whose products are sold at retail in | ||||||
| 10 | Illinois by numerous retailers, and who wish to do so, may | ||||||
| 11 | assume the responsibility for accounting and paying to the | ||||||
| 12 | Department all tax accruing under this Act with respect to | ||||||
| 13 | such sales, if the retailers who are affected do not make | ||||||
| 14 | written objection to the Department to this arrangement. | ||||||
| 15 | (Source: P.A. 102-700, Article 60, Section 60-15, eff. | ||||||
| 16 | 4-19-22; 102-700, Article 65, Section 65-5, eff. 4-19-22; | ||||||
| 17 | 102-1019, eff. 1-1-23; 103-154, eff. 6-30-23; 103-363, eff. | ||||||
| 18 | 7-28-23.)
| ||||||
| 19 | Section 75-10. The Service Use Tax Act is amended by | ||||||
| 20 | changing Sections 2, 3, 3-5, 3-10, and 9 and by adding Section | ||||||
| 21 | 1.05 as follows:
| ||||||
| 22 | (35 ILCS 110/1.05 new) | ||||||
| 23 | Sec. 1.05. Legislative intent; leases. It is the intent of | ||||||
| 24 | the General Assembly in enacting this amendatory Act of the | ||||||
| |||||||
| |||||||
| 1 | 103rd General Assembly to apply the tax imposed under this | ||||||
| 2 | Act, except as otherwise provided in this Act, to the | ||||||
| 3 | privilege of using tangible personal property, other than | ||||||
| 4 | motor vehicles, watercraft, aircraft, and semitrailers, as | ||||||
| 5 | defined in Section 1-187 of the Illinois Vehicle Code, that | ||||||
| 6 | are required to be registered with an agency of this State, | ||||||
| 7 | transferred by lease, as an incident of a purchase of service, | ||||||
| 8 | for leases in effect, entered into, or renewed on or after | ||||||
| 9 | January 1, 2025.
| ||||||
| 10 | (35 ILCS 110/2) (from Ch. 120, par. 439.32) | ||||||
| 11 | Sec. 2. Definitions. In this Act: | ||||||
| 12 | "Use" means the exercise by any person of any right or | ||||||
| 13 | power over tangible personal property incident to the | ||||||
| 14 | ownership of that property, or, on and after January 1, 2025, | ||||||
| 15 | incident to the possession or control of, the right to possess | ||||||
| 16 | or control, or a license to use that property through a lease, | ||||||
| 17 | but does not include the sale or use for demonstration by him | ||||||
| 18 | of that property in any form as tangible personal property in | ||||||
| 19 | the regular course of business. "Use" does not mean the | ||||||
| 20 | interim use of tangible personal property. On and after | ||||||
| 21 | January 1, 2025, the lease of tangible personal property to a | ||||||
| 22 | lessee by a serviceman who is subject to tax on lease receipts | ||||||
| 23 | under this amendatory Act of the 103rd General Assembly does | ||||||
| 24 | not qualify as demonstration use or interim use of that | ||||||
| 25 | property. "Use" does not mean nor the physical incorporation | ||||||
| |||||||
| |||||||
| 1 | of tangible personal property, as an ingredient or | ||||||
| 2 | constituent, into other tangible personal property, (a) which | ||||||
| 3 | is sold in the regular course of business or (b) which the | ||||||
| 4 | person incorporating such ingredient or constituent therein | ||||||
| 5 | has undertaken at the time of such purchase to cause to be | ||||||
| 6 | transported in interstate commerce to destinations outside the | ||||||
| 7 | State of Illinois. | ||||||
| 8 | "Lease" means a transfer of the possession or control of, | ||||||
| 9 | the right to possess or control, or a license to use, but not | ||||||
| 10 | title to, tangible personal property for a fixed or | ||||||
| 11 | indeterminate term for consideration, regardless of the name | ||||||
| 12 | by which the transaction is called. "Lease" does not include a | ||||||
| 13 | lease entered into merely as a security agreement that does | ||||||
| 14 | not involve a transfer of possession from the lessor to the | ||||||
| 15 | lessee. | ||||||
| 16 | On and after January 1, 2025, the term "sale", when used in | ||||||
| 17 | this Act with respect to tangible personal property, includes | ||||||
| 18 | a lease. | ||||||
| 19 | "Purchased from a serviceman" means the acquisition of the | ||||||
| 20 | ownership of, the or title to, the possession or control of, | ||||||
| 21 | the right to possess or control, or a license to use, tangible | ||||||
| 22 | personal property through a sale of service. | ||||||
| 23 | "Purchaser" means any person who, through a sale of | ||||||
| 24 | service, acquires the ownership of, the or title to, the | ||||||
| 25 | possession or control of, the right to possess or control, or a | ||||||
| 26 | license to use, any tangible personal property. | ||||||
| |||||||
| |||||||
| 1 | "Cost price" means the consideration paid by the | ||||||
| 2 | serviceman for a purchase, including, on and after January 1, | ||||||
| 3 | 2025, a lease, valued in money, whether paid in money or | ||||||
| 4 | otherwise, including cash, credits and services, and shall be | ||||||
| 5 | determined without any deduction on account of the supplier's | ||||||
| 6 | cost of the property sold or on account of any other expense | ||||||
| 7 | incurred by the supplier. When a serviceman contracts out part | ||||||
| 8 | or all of the services required in his sale of service, it | ||||||
| 9 | shall be presumed that the cost price to the serviceman of the | ||||||
| 10 | property transferred to him or her by his or her subcontractor | ||||||
| 11 | is equal to 50% of the subcontractor's charges to the | ||||||
| 12 | serviceman in the absence of proof of the consideration paid | ||||||
| 13 | by the subcontractor for the purchase of such property. | ||||||
| 14 | "Selling price" means the consideration for a sale, | ||||||
| 15 | including, on and after January 1, 2025, a lease, valued in | ||||||
| 16 | money whether received in money or otherwise, including cash, | ||||||
| 17 | credits and service, and shall be determined without any | ||||||
| 18 | deduction on account of the serviceman's cost of the property | ||||||
| 19 | sold, the cost of materials used, labor or service cost or any | ||||||
| 20 | other expense whatsoever, but does not include interest or | ||||||
| 21 | finance charges which appear as separate items on the bill of | ||||||
| 22 | sale or sales contract nor charges that are added to prices by | ||||||
| 23 | sellers on account of the seller's duty to collect, from the | ||||||
| 24 | purchaser, the tax that is imposed by this Act. | ||||||
| 25 | "Department" means the Department of Revenue. | ||||||
| 26 | "Person" means any natural individual, firm, partnership, | ||||||
| |||||||
| |||||||
| 1 | association, joint stock company, joint venture, public or | ||||||
| 2 | private corporation, limited liability company, and any | ||||||
| 3 | receiver, executor, trustee, guardian or other representative | ||||||
| 4 | appointed by order of any court. | ||||||
| 5 | "Sale of service" means any transaction except: | ||||||
| 6 | (1) a retail sale of tangible personal property | ||||||
| 7 | taxable under the Retailers' Occupation Tax Act or under | ||||||
| 8 | the Use Tax Act. | ||||||
| 9 | (2) a sale of tangible personal property for the | ||||||
| 10 | purpose of resale made in compliance with Section 2c of | ||||||
| 11 | the Retailers' Occupation Tax Act. | ||||||
| 12 | (3) except as hereinafter provided, a sale or transfer | ||||||
| 13 | of tangible personal property as an incident to the | ||||||
| 14 | rendering of service for or by any governmental body, or | ||||||
| 15 | for or by any corporation, society, association, | ||||||
| 16 | foundation or institution organized and operated | ||||||
| 17 | exclusively for charitable, religious or educational | ||||||
| 18 | purposes or any not-for-profit corporation, society, | ||||||
| 19 | association, foundation, institution or organization which | ||||||
| 20 | has no compensated officers or employees and which is | ||||||
| 21 | organized and operated primarily for the recreation of | ||||||
| 22 | persons 55 years of age or older. A limited liability | ||||||
| 23 | company may qualify for the exemption under this paragraph | ||||||
| 24 | only if the limited liability company is organized and | ||||||
| 25 | operated exclusively for educational purposes. | ||||||
| 26 | (4) (blank). | ||||||
| |||||||
| |||||||
| 1 | (4a) a sale or transfer of tangible personal property | ||||||
| 2 | as an incident to the rendering of service for owners or , | ||||||
| 3 | lessors, lessees, or shippers of tangible personal | ||||||
| 4 | property which is utilized by interstate carriers for hire | ||||||
| 5 | for use as rolling stock moving in interstate commerce so | ||||||
| 6 | long as so used by interstate carriers for hire, and | ||||||
| 7 | equipment operated by a telecommunications provider, | ||||||
| 8 | licensed as a common carrier by the Federal Communications | ||||||
| 9 | Commission, which is permanently installed in or affixed | ||||||
| 10 | to aircraft moving in interstate commerce. | ||||||
| 11 | (4a-5) on and after July 1, 2003 and through June 30, | ||||||
| 12 | 2004, a sale or transfer of a motor vehicle of the second | ||||||
| 13 | division with a gross vehicle weight in excess of 8,000 | ||||||
| 14 | pounds as an incident to the rendering of service if that | ||||||
| 15 | motor vehicle is subject to the commercial distribution | ||||||
| 16 | fee imposed under Section 3-815.1 of the Illinois Vehicle | ||||||
| 17 | Code. Beginning on July 1, 2004 and through June 30, 2005, | ||||||
| 18 | the use in this State of motor vehicles of the second | ||||||
| 19 | division: (i) with a gross vehicle weight rating in excess | ||||||
| 20 | of 8,000 pounds; (ii) that are subject to the commercial | ||||||
| 21 | distribution fee imposed under Section 3-815.1 of the | ||||||
| 22 | Illinois Vehicle Code; and (iii) that are primarily used | ||||||
| 23 | for commercial purposes. Through June 30, 2005, this | ||||||
| 24 | exemption applies to repair and replacement parts added | ||||||
| 25 | after the initial purchase of such a motor vehicle if that | ||||||
| 26 | motor vehicle is used in a manner that would qualify for | ||||||
| |||||||
| |||||||
| 1 | the rolling stock exemption otherwise provided for in this | ||||||
| 2 | Act. For purposes of this paragraph, "used for commercial | ||||||
| 3 | purposes" means the transportation of persons or property | ||||||
| 4 | in furtherance of any commercial or industrial enterprise | ||||||
| 5 | whether for-hire or not. | ||||||
| 6 | (5) a sale or transfer of machinery and equipment used | ||||||
| 7 | primarily in the process of the manufacturing or | ||||||
| 8 | assembling, either in an existing, an expanded or a new | ||||||
| 9 | manufacturing facility, of tangible personal property for | ||||||
| 10 | wholesale or retail sale or lease, whether such sale or | ||||||
| 11 | lease is made directly by the manufacturer or by some | ||||||
| 12 | other person, whether the materials used in the process | ||||||
| 13 | are owned by the manufacturer or some other person, or | ||||||
| 14 | whether such sale or lease is made apart from or as an | ||||||
| 15 | incident to the seller's engaging in a service occupation | ||||||
| 16 | and the applicable tax is a Service Use Tax or Service | ||||||
| 17 | Occupation Tax, rather than Use Tax or Retailers' | ||||||
| 18 | Occupation Tax. The exemption provided by this paragraph | ||||||
| 19 | (5) includes production related tangible personal | ||||||
| 20 | property, as defined in Section 3-50 of the Use Tax Act, | ||||||
| 21 | purchased on or after July 1, 2019. The exemption provided | ||||||
| 22 | by this paragraph (5) does not include machinery and | ||||||
| 23 | equipment used in (i) the generation of electricity for | ||||||
| 24 | wholesale or retail sale; (ii) the generation or treatment | ||||||
| 25 | of natural or artificial gas for wholesale or retail sale | ||||||
| 26 | that is delivered to customers through pipes, pipelines, | ||||||
| |||||||
| |||||||
| 1 | or mains; or (iii) the treatment of water for wholesale or | ||||||
| 2 | retail sale that is delivered to customers through pipes, | ||||||
| 3 | pipelines, or mains. The provisions of Public Act 98-583 | ||||||
| 4 | are declaratory of existing law as to the meaning and | ||||||
| 5 | scope of this exemption. The exemption under this | ||||||
| 6 | paragraph (5) is exempt from the provisions of Section | ||||||
| 7 | 3-75. | ||||||
| 8 | (5a) the repairing, reconditioning or remodeling, for | ||||||
| 9 | a common carrier by rail, of tangible personal property | ||||||
| 10 | which belongs to such carrier for hire, and as to which | ||||||
| 11 | such carrier receives the physical possession of the | ||||||
| 12 | repaired, reconditioned or remodeled item of tangible | ||||||
| 13 | personal property in Illinois, and which such carrier | ||||||
| 14 | transports, or shares with another common carrier in the | ||||||
| 15 | transportation of such property, out of Illinois on a | ||||||
| 16 | standard uniform bill of lading showing the person who | ||||||
| 17 | repaired, reconditioned or remodeled the property to a | ||||||
| 18 | destination outside Illinois, for use outside Illinois. | ||||||
| 19 | (5b) a sale or transfer of tangible personal property | ||||||
| 20 | which is produced by the seller thereof on special order | ||||||
| 21 | in such a way as to have made the applicable tax the | ||||||
| 22 | Service Occupation Tax or the Service Use Tax, rather than | ||||||
| 23 | the Retailers' Occupation Tax or the Use Tax, for an | ||||||
| 24 | interstate carrier by rail which receives the physical | ||||||
| 25 | possession of such property in Illinois, and which | ||||||
| 26 | transports such property, or shares with another common | ||||||
| |||||||
| |||||||
| 1 | carrier in the transportation of such property, out of | ||||||
| 2 | Illinois on a standard uniform bill of lading showing the | ||||||
| 3 | seller of the property as the shipper or consignor of such | ||||||
| 4 | property to a destination outside Illinois, for use | ||||||
| 5 | outside Illinois. | ||||||
| 6 | (6) until July 1, 2003, a sale or transfer of | ||||||
| 7 | distillation machinery and equipment, sold as a unit or | ||||||
| 8 | kit and assembled or installed by the retailer, which | ||||||
| 9 | machinery and equipment is certified by the user to be | ||||||
| 10 | used only for the production of ethyl alcohol that will be | ||||||
| 11 | used for consumption as motor fuel or as a component of | ||||||
| 12 | motor fuel for the personal use of such user and not | ||||||
| 13 | subject to sale or resale. | ||||||
| 14 | (7) at the election of any serviceman not required to | ||||||
| 15 | be otherwise registered as a retailer under Section 2a of | ||||||
| 16 | the Retailers' Occupation Tax Act, made for each fiscal | ||||||
| 17 | year sales of service in which the aggregate annual cost | ||||||
| 18 | price of tangible personal property transferred as an | ||||||
| 19 | incident to the sales of service is less than 35%, or 75% | ||||||
| 20 | in the case of servicemen transferring prescription drugs | ||||||
| 21 | or servicemen engaged in graphic arts production, of the | ||||||
| 22 | aggregate annual total gross receipts from all sales of | ||||||
| 23 | service. The purchase of such tangible personal property | ||||||
| 24 | by the serviceman shall be subject to tax under the | ||||||
| 25 | Retailers' Occupation Tax Act and the Use Tax Act. | ||||||
| 26 | However, if a primary serviceman who has made the election | ||||||
| |||||||
| |||||||
| 1 | described in this paragraph subcontracts service work to a | ||||||
| 2 | secondary serviceman who has also made the election | ||||||
| 3 | described in this paragraph, the primary serviceman does | ||||||
| 4 | not incur a Use Tax liability if the secondary serviceman | ||||||
| 5 | (i) has paid or will pay Use Tax on his or her cost price | ||||||
| 6 | of any tangible personal property transferred to the | ||||||
| 7 | primary serviceman and (ii) certifies that fact in writing | ||||||
| 8 | to the primary serviceman. | ||||||
| 9 | Tangible personal property transferred incident to the | ||||||
| 10 | completion of a maintenance agreement is exempt from the tax | ||||||
| 11 | imposed pursuant to this Act. | ||||||
| 12 | Exemption (5) also includes machinery and equipment used | ||||||
| 13 | in the general maintenance or repair of such exempt machinery | ||||||
| 14 | and equipment or for in-house manufacture of exempt machinery | ||||||
| 15 | and equipment. On and after July 1, 2017, exemption (5) also | ||||||
| 16 | includes graphic arts machinery and equipment, as defined in | ||||||
| 17 | paragraph (5) of Section 3-5. The machinery and equipment | ||||||
| 18 | exemption does not include machinery and equipment used in (i) | ||||||
| 19 | the generation of electricity for wholesale or retail sale; | ||||||
| 20 | (ii) the generation or treatment of natural or artificial gas | ||||||
| 21 | for wholesale or retail sale that is delivered to customers | ||||||
| 22 | through pipes, pipelines, or mains; or (iii) the treatment of | ||||||
| 23 | water for wholesale or retail sale that is delivered to | ||||||
| 24 | customers through pipes, pipelines, or mains. The provisions | ||||||
| 25 | of Public Act 98-583 are declaratory of existing law as to the | ||||||
| 26 | meaning and scope of this exemption. For the purposes of | ||||||
| |||||||
| |||||||
| 1 | exemption (5), each of these terms shall have the following | ||||||
| 2 | meanings: (1) "manufacturing process" shall mean the | ||||||
| 3 | production of any article of tangible personal property, | ||||||
| 4 | whether such article is a finished product or an article for | ||||||
| 5 | use in the process of manufacturing or assembling a different | ||||||
| 6 | article of tangible personal property, by procedures commonly | ||||||
| 7 | regarded as manufacturing, processing, fabricating, or | ||||||
| 8 | refining which changes some existing material or materials | ||||||
| 9 | into a material with a different form, use or name. In relation | ||||||
| 10 | to a recognized integrated business composed of a series of | ||||||
| 11 | operations which collectively constitute manufacturing, or | ||||||
| 12 | individually constitute manufacturing operations, the | ||||||
| 13 | manufacturing process shall be deemed to commence with the | ||||||
| 14 | first operation or stage of production in the series, and | ||||||
| 15 | shall not be deemed to end until the completion of the final | ||||||
| 16 | product in the last operation or stage of production in the | ||||||
| 17 | series; and further, for purposes of exemption (5), | ||||||
| 18 | photoprocessing is deemed to be a manufacturing process of | ||||||
| 19 | tangible personal property for wholesale or retail sale; (2) | ||||||
| 20 | "assembling process" shall mean the production of any article | ||||||
| 21 | of tangible personal property, whether such article is a | ||||||
| 22 | finished product or an article for use in the process of | ||||||
| 23 | manufacturing or assembling a different article of tangible | ||||||
| 24 | personal property, by the combination of existing materials in | ||||||
| 25 | a manner commonly regarded as assembling which results in a | ||||||
| 26 | material of a different form, use or name; (3) "machinery" | ||||||
| |||||||
| |||||||
| 1 | shall mean major mechanical machines or major components of | ||||||
| 2 | such machines contributing to a manufacturing or assembling | ||||||
| 3 | process; and (4) "equipment" shall include any independent | ||||||
| 4 | device or tool separate from any machinery but essential to an | ||||||
| 5 | integrated manufacturing or assembly process; including | ||||||
| 6 | computers used primarily in a manufacturer's computer assisted | ||||||
| 7 | design, computer assisted manufacturing (CAD/CAM) system; or | ||||||
| 8 | any subunit or assembly comprising a component of any | ||||||
| 9 | machinery or auxiliary, adjunct or attachment parts of | ||||||
| 10 | machinery, such as tools, dies, jigs, fixtures, patterns and | ||||||
| 11 | molds; or any parts which require periodic replacement in the | ||||||
| 12 | course of normal operation; but shall not include hand tools. | ||||||
| 13 | Equipment includes chemicals or chemicals acting as catalysts | ||||||
| 14 | but only if the chemicals or chemicals acting as catalysts | ||||||
| 15 | effect a direct and immediate change upon a product being | ||||||
| 16 | manufactured or assembled for wholesale or retail sale or | ||||||
| 17 | lease. The purchaser of such machinery and equipment who has | ||||||
| 18 | an active resale registration number shall furnish such number | ||||||
| 19 | to the seller at the time of purchase. The purchaser of such | ||||||
| 20 | machinery and equipment and tools without an active resale | ||||||
| 21 | registration number shall prepare a certificate of exemption | ||||||
| 22 | stating facts establishing the exemption, which certificate | ||||||
| 23 | shall be available to the Department for inspection or audit. | ||||||
| 24 | The Department shall prescribe the form of the certificate. | ||||||
| 25 | Any informal rulings, opinions or letters issued by the | ||||||
| 26 | Department in response to an inquiry or request for any | ||||||
| |||||||
| |||||||
| 1 | opinion from any person regarding the coverage and | ||||||
| 2 | applicability of exemption (5) to specific devices shall be | ||||||
| 3 | published, maintained as a public record, and made available | ||||||
| 4 | for public inspection and copying. If the informal ruling, | ||||||
| 5 | opinion or letter contains trade secrets or other confidential | ||||||
| 6 | information, where possible the Department shall delete such | ||||||
| 7 | information prior to publication. Whenever such informal | ||||||
| 8 | rulings, opinions, or letters contain any policy of general | ||||||
| 9 | applicability, the Department shall formulate and adopt such | ||||||
| 10 | policy as a rule in accordance with the provisions of the | ||||||
| 11 | Illinois Administrative Procedure Act. | ||||||
| 12 | On and after July 1, 1987, no entity otherwise eligible | ||||||
| 13 | under exemption (3) of this Section shall make tax-free | ||||||
| 14 | purchases unless it has an active exemption identification | ||||||
| 15 | number issued by the Department. | ||||||
| 16 | The purchase, employment and transfer of such tangible | ||||||
| 17 | personal property as newsprint and ink for the primary purpose | ||||||
| 18 | of conveying news (with or without other information) is not a | ||||||
| 19 | purchase, use or sale of service or of tangible personal | ||||||
| 20 | property within the meaning of this Act. | ||||||
| 21 | "Serviceman" means any person who is engaged in the | ||||||
| 22 | occupation of making sales of service. | ||||||
| 23 | "Sale at retail" means "sale at retail" as defined in the | ||||||
| 24 | Retailers' Occupation Tax Act, which, on and after January 1, | ||||||
| 25 | 2025, is defined to include leases. | ||||||
| 26 | "Supplier" means any person who makes sales of tangible | ||||||
| |||||||
| |||||||
| 1 | personal property to servicemen for the purpose of resale as | ||||||
| 2 | an incident to a sale of service. | ||||||
| 3 | "Serviceman maintaining a place of business in this | ||||||
| 4 | State", or any like term, means and includes any serviceman: | ||||||
| 5 | (1) having or maintaining within this State, directly | ||||||
| 6 | or by a subsidiary, an office, distribution house, sales | ||||||
| 7 | house, warehouse or other place of business, or any agent | ||||||
| 8 | or other representative operating within this State under | ||||||
| 9 | the authority of the serviceman or its subsidiary, | ||||||
| 10 | irrespective of whether such place of business or agent or | ||||||
| 11 | other representative is located here permanently or | ||||||
| 12 | temporarily, or whether such serviceman or subsidiary is | ||||||
| 13 | licensed to do business in this State; | ||||||
| 14 | (1.1) having a contract with a person located in this | ||||||
| 15 | State under which the person, for a commission or other | ||||||
| 16 | consideration based on the sale of service by the | ||||||
| 17 | serviceman, directly or indirectly refers potential | ||||||
| 18 | customers to the serviceman by providing to the potential | ||||||
| 19 | customers a promotional code or other mechanism that | ||||||
| 20 | allows the serviceman to track purchases referred by such | ||||||
| 21 | persons. Examples of mechanisms that allow the serviceman | ||||||
| 22 | to track purchases referred by such persons include but | ||||||
| 23 | are not limited to the use of a link on the person's | ||||||
| 24 | Internet website, promotional codes distributed through | ||||||
| 25 | the person's hand-delivered or mailed material, and | ||||||
| 26 | promotional codes distributed by the person through radio | ||||||
| |||||||
| |||||||
| 1 | or other broadcast media. The provisions of this paragraph | ||||||
| 2 | (1.1) shall apply only if the cumulative gross receipts | ||||||
| 3 | from sales of service by the serviceman to customers who | ||||||
| 4 | are referred to the serviceman by all persons in this | ||||||
| 5 | State under such contracts exceed $10,000 during the | ||||||
| 6 | preceding 4 quarterly periods ending on the last day of | ||||||
| 7 | March, June, September, and December; a serviceman meeting | ||||||
| 8 | the requirements of this paragraph (1.1) shall be presumed | ||||||
| 9 | to be maintaining a place of business in this State but may | ||||||
| 10 | rebut this presumption by submitting proof that the | ||||||
| 11 | referrals or other activities pursued within this State by | ||||||
| 12 | such persons were not sufficient to meet the nexus | ||||||
| 13 | standards of the United States Constitution during the | ||||||
| 14 | preceding 4 quarterly periods; | ||||||
| 15 | (1.2) beginning July 1, 2011, having a contract with a | ||||||
| 16 | person located in this State under which: | ||||||
| 17 | (A) the serviceman sells the same or substantially | ||||||
| 18 | similar line of services as the person located in this | ||||||
| 19 | State and does so using an identical or substantially | ||||||
| 20 | similar name, trade name, or trademark as the person | ||||||
| 21 | located in this State; and | ||||||
| 22 | (B) the serviceman provides a commission or other | ||||||
| 23 | consideration to the person located in this State | ||||||
| 24 | based upon the sale of services by the serviceman. | ||||||
| 25 | The provisions of this paragraph (1.2) shall apply only if | ||||||
| 26 | the cumulative gross receipts from sales of service by the | ||||||
| |||||||
| |||||||
| 1 | serviceman to customers in this State under all such | ||||||
| 2 | contracts exceed $10,000 during the preceding 4 quarterly | ||||||
| 3 | periods ending on the last day of March, June, September, | ||||||
| 4 | and December; | ||||||
| 5 | (2) soliciting orders for tangible personal property | ||||||
| 6 | by means of a telecommunication or television shopping | ||||||
| 7 | system (which utilizes toll free numbers) which is | ||||||
| 8 | intended by the retailer to be broadcast by cable | ||||||
| 9 | television or other means of broadcasting, to consumers | ||||||
| 10 | located in this State; | ||||||
| 11 | (3) pursuant to a contract with a broadcaster or | ||||||
| 12 | publisher located in this State, soliciting orders for | ||||||
| 13 | tangible personal property by means of advertising which | ||||||
| 14 | is disseminated primarily to consumers located in this | ||||||
| 15 | State and only secondarily to bordering jurisdictions; | ||||||
| 16 | (4) soliciting orders for tangible personal property | ||||||
| 17 | by mail if the solicitations are substantial and recurring | ||||||
| 18 | and if the retailer benefits from any banking, financing, | ||||||
| 19 | debt collection, telecommunication, or marketing | ||||||
| 20 | activities occurring in this State or benefits from the | ||||||
| 21 | location in this State of authorized installation, | ||||||
| 22 | servicing, or repair facilities; | ||||||
| 23 | (5) being owned or controlled by the same interests | ||||||
| 24 | which own or control any retailer engaging in business in | ||||||
| 25 | the same or similar line of business in this State; | ||||||
| 26 | (6) having a franchisee or licensee operating under | ||||||
| |||||||
| |||||||
| 1 | its trade name if the franchisee or licensee is required | ||||||
| 2 | to collect the tax under this Section; | ||||||
| 3 | (7) pursuant to a contract with a cable television | ||||||
| 4 | operator located in this State, soliciting orders for | ||||||
| 5 | tangible personal property by means of advertising which | ||||||
| 6 | is transmitted or distributed over a cable television | ||||||
| 7 | system in this State; | ||||||
| 8 | (8) engaging in activities in Illinois, which | ||||||
| 9 | activities in the state in which the supply business | ||||||
| 10 | engaging in such activities is located would constitute | ||||||
| 11 | maintaining a place of business in that state; or | ||||||
| 12 | (9) beginning October 1, 2018, making sales of service | ||||||
| 13 | to purchasers in Illinois from outside of Illinois if: | ||||||
| 14 | (A) the cumulative gross receipts from sales of | ||||||
| 15 | service to purchasers in Illinois are $100,000 or | ||||||
| 16 | more; or | ||||||
| 17 | (B) the serviceman enters into 200 or more | ||||||
| 18 | separate transactions for sales of service to | ||||||
| 19 | purchasers in Illinois. | ||||||
| 20 | The serviceman shall determine on a quarterly basis, | ||||||
| 21 | ending on the last day of March, June, September, and | ||||||
| 22 | December, whether he or she meets the criteria of either | ||||||
| 23 | subparagraph (A) or (B) of this paragraph (9) for the | ||||||
| 24 | preceding 12-month period. If the serviceman meets the | ||||||
| 25 | criteria of either subparagraph (A) or (B) for a 12-month | ||||||
| 26 | period, he or she is considered a serviceman maintaining a | ||||||
| |||||||
| |||||||
| 1 | place of business in this State and is required to collect | ||||||
| 2 | and remit the tax imposed under this Act and file returns | ||||||
| 3 | for one year. At the end of that one-year period, the | ||||||
| 4 | serviceman shall determine whether the serviceman met the | ||||||
| 5 | criteria of either subparagraph (A) or (B) during the | ||||||
| 6 | preceding 12-month period. If the serviceman met the | ||||||
| 7 | criteria in either subparagraph (A) or (B) for the | ||||||
| 8 | preceding 12-month period, he or she is considered a | ||||||
| 9 | serviceman maintaining a place of business in this State | ||||||
| 10 | and is required to collect and remit the tax imposed under | ||||||
| 11 | this Act and file returns for the subsequent year. If at | ||||||
| 12 | the end of a one-year period a serviceman that was | ||||||
| 13 | required to collect and remit the tax imposed under this | ||||||
| 14 | Act determines that he or she did not meet the criteria in | ||||||
| 15 | either subparagraph (A) or (B) during the preceding | ||||||
| 16 | 12-month period, the serviceman subsequently shall | ||||||
| 17 | determine on a quarterly basis, ending on the last day of | ||||||
| 18 | March, June, September, and December, whether he or she | ||||||
| 19 | meets the criteria of either subparagraph (A) or (B) for | ||||||
| 20 | the preceding 12-month period. | ||||||
| 21 | Beginning January 1, 2020, neither the gross receipts | ||||||
| 22 | from nor the number of separate transactions for sales of | ||||||
| 23 | service to purchasers in Illinois that a serviceman makes | ||||||
| 24 | through a marketplace facilitator and for which the | ||||||
| 25 | serviceman has received a certification from the | ||||||
| 26 | marketplace facilitator pursuant to Section 2d of this Act | ||||||
| |||||||
| |||||||
| 1 | shall be included for purposes of determining whether he | ||||||
| 2 | or she has met the thresholds of this paragraph (9). | ||||||
| 3 | (10) Beginning January 1, 2020, a marketplace | ||||||
| 4 | facilitator, as defined in Section 2d of this Act. | ||||||
| 5 | (Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17; | ||||||
| 6 | 100-587, eff. 6-4-18; 100-863, eff. 8-14-18; 101-9, Article | ||||||
| 7 | 10, Section 10-15, eff. 6-5-19; 101-9, Article 25, Section | ||||||
| 8 | 25-10, eff. 6-5-19; 101-604, eff. 12-13-19.)
| ||||||
| 9 | (35 ILCS 110/3) (from Ch. 120, par. 439.33) | ||||||
| 10 | Sec. 3. Tax imposed. A tax is imposed upon the privilege of | ||||||
| 11 | using in this State real or tangible personal property | ||||||
| 12 | acquired, which, on and after January 1, 2025, includes | ||||||
| 13 | tangible personal property acquired through a lease, as an | ||||||
| 14 | incident to the purchase of a service from a serviceman, | ||||||
| 15 | including computer software, and including photographs, | ||||||
| 16 | negatives, and positives that are the product of | ||||||
| 17 | photoprocessing, but not including products of photoprocessing | ||||||
| 18 | produced for use in motion pictures for public commercial | ||||||
| 19 | exhibition. Beginning January 1, 2001, prepaid telephone | ||||||
| 20 | calling arrangements shall be considered tangible personal | ||||||
| 21 | property subject to the tax imposed under this Act regardless | ||||||
| 22 | of the form in which those arrangements may be embodied, | ||||||
| 23 | transmitted, or fixed by any method now known or hereafter | ||||||
| 24 | developed. Purchases of (1) electricity delivered to customers | ||||||
| 25 | by wire; (2) natural or artificial gas that is delivered to | ||||||
| |||||||
| |||||||
| 1 | customers through pipes, pipelines, or mains; and (3) water | ||||||
| 2 | that is delivered to customers through pipes, pipelines, or | ||||||
| 3 | mains are not subject to tax under this Act. The provisions of | ||||||
| 4 | this amendatory Act of the 98th General Assembly are | ||||||
| 5 | declaratory of existing law as to the meaning and scope of this | ||||||
| 6 | Act. | ||||||
| 7 | The imposition of the tax under this Act on leases applies | ||||||
| 8 | to leases of tangible personal property in effect, entered | ||||||
| 9 | into, or renewed on or after January 1, 2025. In the case of | ||||||
| 10 | leases, except as otherwise provided in this Act, the | ||||||
| 11 | serviceman who is a lessor, in collecting the tax, may collect | ||||||
| 12 | for each tax return period only the tax applicable to that part | ||||||
| 13 | of the selling price actually received during such tax return | ||||||
| 14 | period. | ||||||
| 15 | (Source: P.A. 98-583, eff. 1-1-14.)
| ||||||
| 16 | (35 ILCS 110/3-5) | ||||||
| 17 | Sec. 3-5. Exemptions. Use of the following tangible | ||||||
| 18 | personal property is exempt from the tax imposed by this Act: | ||||||
| 19 | (1) Personal property purchased from a corporation, | ||||||
| 20 | society, association, foundation, institution, or | ||||||
| 21 | organization, other than a limited liability company, that is | ||||||
| 22 | organized and operated as a not-for-profit service enterprise | ||||||
| 23 | for the benefit of persons 65 years of age or older if the | ||||||
| 24 | personal property was not purchased by the enterprise for the | ||||||
| 25 | purpose of resale by the enterprise. | ||||||
| |||||||
| |||||||
| 1 | (2) Personal property purchased by a non-profit Illinois | ||||||
| 2 | county fair association for use in conducting, operating, or | ||||||
| 3 | promoting the county fair. | ||||||
| 4 | (3) Personal property purchased by a not-for-profit arts | ||||||
| 5 | or cultural organization that establishes, by proof required | ||||||
| 6 | by the Department by rule, that it has received an exemption | ||||||
| 7 | under Section 501(c)(3) of the Internal Revenue Code and that | ||||||
| 8 | is organized and operated primarily for the presentation or | ||||||
| 9 | support of arts or cultural programming, activities, or | ||||||
| 10 | services. These organizations include, but are not limited to, | ||||||
| 11 | music and dramatic arts organizations such as symphony | ||||||
| 12 | orchestras and theatrical groups, arts and cultural service | ||||||
| 13 | organizations, local arts councils, visual arts organizations, | ||||||
| 14 | and media arts organizations. On and after July 1, 2001 (the | ||||||
| 15 | effective date of Public Act 92-35), however, an entity | ||||||
| 16 | otherwise eligible for this exemption shall not make tax-free | ||||||
| 17 | purchases unless it has an active identification number issued | ||||||
| 18 | by the Department. | ||||||
| 19 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
| 20 | coinage issued by the State of Illinois, the government of the | ||||||
| 21 | United States of America, or the government of any foreign | ||||||
| 22 | country, and bullion. | ||||||
| 23 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
| 24 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
| 25 | equipment, including repair and replacement parts, both new | ||||||
| 26 | and used, and including that manufactured on special order or | ||||||
| |||||||
| |||||||
| 1 | purchased for lease, certified by the purchaser to be used | ||||||
| 2 | primarily for graphic arts production. Equipment includes | ||||||
| 3 | chemicals or chemicals acting as catalysts but only if the | ||||||
| 4 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
| 5 | immediate change upon a graphic arts product. Beginning on | ||||||
| 6 | July 1, 2017, graphic arts machinery and equipment is included | ||||||
| 7 | in the manufacturing and assembling machinery and equipment | ||||||
| 8 | exemption under Section 2 of this Act. | ||||||
| 9 | (6) Personal property purchased from a teacher-sponsored | ||||||
| 10 | student organization affiliated with an elementary or | ||||||
| 11 | secondary school located in Illinois. | ||||||
| 12 | (7) Farm machinery and equipment, both new and used, | ||||||
| 13 | including that manufactured on special order, certified by the | ||||||
| 14 | purchaser to be used primarily for production agriculture or | ||||||
| 15 | State or federal agricultural programs, including individual | ||||||
| 16 | replacement parts for the machinery and equipment, including | ||||||
| 17 | machinery and equipment purchased for lease, and including | ||||||
| 18 | implements of husbandry defined in Section 1-130 of the | ||||||
| 19 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
| 20 | chemical and fertilizer spreaders, and nurse wagons required | ||||||
| 21 | to be registered under Section 3-809 of the Illinois Vehicle | ||||||
| 22 | Code, but excluding other motor vehicles required to be | ||||||
| 23 | registered under the Illinois Vehicle Code. Horticultural | ||||||
| 24 | polyhouses or hoop houses used for propagating, growing, or | ||||||
| 25 | overwintering plants shall be considered farm machinery and | ||||||
| 26 | equipment under this item (7). Agricultural chemical tender | ||||||
| |||||||
| |||||||
| 1 | tanks and dry boxes shall include units sold separately from a | ||||||
| 2 | motor vehicle required to be licensed and units sold mounted | ||||||
| 3 | on a motor vehicle required to be licensed if the selling price | ||||||
| 4 | of the tender is separately stated. | ||||||
| 5 | Farm machinery and equipment shall include precision | ||||||
| 6 | farming equipment that is installed or purchased to be | ||||||
| 7 | installed on farm machinery and equipment, including, but not | ||||||
| 8 | limited to, tractors, harvesters, sprayers, planters, seeders, | ||||||
| 9 | or spreaders. Precision farming equipment includes, but is not | ||||||
| 10 | limited to, soil testing sensors, computers, monitors, | ||||||
| 11 | software, global positioning and mapping systems, and other | ||||||
| 12 | such equipment. | ||||||
| 13 | Farm machinery and equipment also includes computers, | ||||||
| 14 | sensors, software, and related equipment used primarily in the | ||||||
| 15 | computer-assisted operation of production agriculture | ||||||
| 16 | facilities, equipment, and activities such as, but not limited | ||||||
| 17 | to, the collection, monitoring, and correlation of animal and | ||||||
| 18 | crop data for the purpose of formulating animal diets and | ||||||
| 19 | agricultural chemicals. | ||||||
| 20 | Beginning on January 1, 2024, farm machinery and equipment | ||||||
| 21 | also includes electrical power generation equipment used | ||||||
| 22 | primarily for production agriculture. | ||||||
| 23 | This item (7) is exempt from the provisions of Section | ||||||
| 24 | 3-75. | ||||||
| 25 | (8) Until June 30, 2013, fuel and petroleum products sold | ||||||
| 26 | to or used by an air common carrier, certified by the carrier | ||||||
| |||||||
| |||||||
| 1 | to be used for consumption, shipment, or storage in the | ||||||
| 2 | conduct of its business as an air common carrier, for a flight | ||||||
| 3 | destined for or returning from a location or locations outside | ||||||
| 4 | the United States without regard to previous or subsequent | ||||||
| 5 | domestic stopovers. | ||||||
| 6 | Beginning July 1, 2013, fuel and petroleum products sold | ||||||
| 7 | to or used by an air carrier, certified by the carrier to be | ||||||
| 8 | used for consumption, shipment, or storage in the conduct of | ||||||
| 9 | its business as an air common carrier, for a flight that (i) is | ||||||
| 10 | engaged in foreign trade or is engaged in trade between the | ||||||
| 11 | United States and any of its possessions and (ii) transports | ||||||
| 12 | at least one individual or package for hire from the city of | ||||||
| 13 | origination to the city of final destination on the same | ||||||
| 14 | aircraft, without regard to a change in the flight number of | ||||||
| 15 | that aircraft. | ||||||
| 16 | (9) Proceeds of mandatory service charges separately | ||||||
| 17 | stated on customers' bills for the purchase and consumption of | ||||||
| 18 | food and beverages acquired as an incident to the purchase of a | ||||||
| 19 | service from a serviceman, to the extent that the proceeds of | ||||||
| 20 | the service charge are in fact turned over as tips or as a | ||||||
| 21 | substitute for tips to the employees who participate directly | ||||||
| 22 | in preparing, serving, hosting or cleaning up the food or | ||||||
| 23 | beverage function with respect to which the service charge is | ||||||
| 24 | imposed. | ||||||
| 25 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
| 26 | and production equipment, including (i) rigs and parts of | ||||||
| |||||||
| |||||||
| 1 | rigs, rotary rigs, cable tool rigs, and workover rigs, (ii) | ||||||
| 2 | pipe and tubular goods, including casing and drill strings, | ||||||
| 3 | (iii) pumps and pump-jack units, (iv) storage tanks and flow | ||||||
| 4 | lines, (v) any individual replacement part for oil field | ||||||
| 5 | exploration, drilling, and production equipment, and (vi) | ||||||
| 6 | machinery and equipment purchased for lease; but excluding | ||||||
| 7 | motor vehicles required to be registered under the Illinois | ||||||
| 8 | Vehicle Code. | ||||||
| 9 | (11) Proceeds from the sale of photoprocessing machinery | ||||||
| 10 | and equipment, including repair and replacement parts, both | ||||||
| 11 | new and used, including that manufactured on special order, | ||||||
| 12 | certified by the purchaser to be used primarily for | ||||||
| 13 | photoprocessing, and including photoprocessing machinery and | ||||||
| 14 | equipment purchased for lease. | ||||||
| 15 | (12) Until July 1, 2028, coal and aggregate exploration, | ||||||
| 16 | mining, off-highway hauling, processing, maintenance, and | ||||||
| 17 | reclamation equipment, including replacement parts and | ||||||
| 18 | equipment, and including equipment purchased for lease, but | ||||||
| 19 | excluding motor vehicles required to be registered under the | ||||||
| 20 | Illinois Vehicle Code. The changes made to this Section by | ||||||
| 21 | Public Act 97-767 apply on and after July 1, 2003, but no claim | ||||||
| 22 | for credit or refund is allowed on or after August 16, 2013 | ||||||
| 23 | (the effective date of Public Act 98-456) for such taxes paid | ||||||
| 24 | during the period beginning July 1, 2003 and ending on August | ||||||
| 25 | 16, 2013 (the effective date of Public Act 98-456). | ||||||
| 26 | (13) Semen used for artificial insemination of livestock | ||||||
| |||||||
| |||||||
| 1 | for direct agricultural production. | ||||||
| 2 | (14) Horses, or interests in horses, registered with and | ||||||
| 3 | meeting the requirements of any of the Arabian Horse Club | ||||||
| 4 | Registry of America, Appaloosa Horse Club, American Quarter | ||||||
| 5 | Horse Association, United States Trotting Association, or | ||||||
| 6 | Jockey Club, as appropriate, used for purposes of breeding or | ||||||
| 7 | racing for prizes. This item (14) is exempt from the | ||||||
| 8 | provisions of Section 3-75, and the exemption provided for | ||||||
| 9 | under this item (14) applies for all periods beginning May 30, | ||||||
| 10 | 1995, but no claim for credit or refund is allowed on or after | ||||||
| 11 | January 1, 2008 (the effective date of Public Act 95-88) for | ||||||
| 12 | such taxes paid during the period beginning May 30, 2000 and | ||||||
| 13 | ending on January 1, 2008 (the effective date of Public Act | ||||||
| 14 | 95-88). | ||||||
| 15 | (15) Computers and communications equipment utilized for | ||||||
| 16 | any hospital purpose and equipment used in the diagnosis, | ||||||
| 17 | analysis, or treatment of hospital patients purchased by a | ||||||
| 18 | lessor who leases the equipment, under a lease of one year or | ||||||
| 19 | longer executed or in effect at the time the lessor would | ||||||
| 20 | otherwise be subject to the tax imposed by this Act, to a | ||||||
| 21 | hospital that has been issued an active tax exemption | ||||||
| 22 | identification number by the Department under Section 1g of | ||||||
| 23 | the Retailers' Occupation Tax Act. If the equipment is leased | ||||||
| 24 | in a manner that does not qualify for this exemption or is used | ||||||
| 25 | in any other non-exempt manner, the lessor shall be liable for | ||||||
| 26 | the tax imposed under this Act or the Use Tax Act, as the case | ||||||
| |||||||
| |||||||
| 1 | may be, based on the fair market value of the property at the | ||||||
| 2 | time the non-qualifying use occurs. No lessor shall collect or | ||||||
| 3 | attempt to collect an amount (however designated) that | ||||||
| 4 | purports to reimburse that lessor for the tax imposed by this | ||||||
| 5 | Act or the Use Tax Act, as the case may be, if the tax has not | ||||||
| 6 | been paid by the lessor. If a lessor improperly collects any | ||||||
| 7 | such amount from the lessee, the lessee shall have a legal | ||||||
| 8 | right to claim a refund of that amount from the lessor. If, | ||||||
| 9 | however, that amount is not refunded to the lessee for any | ||||||
| 10 | reason, the lessor is liable to pay that amount to the | ||||||
| 11 | Department. | ||||||
| 12 | (16) Personal property purchased by a lessor who leases | ||||||
| 13 | the property, under a lease of one year or longer executed or | ||||||
| 14 | in effect at the time the lessor would otherwise be subject to | ||||||
| 15 | the tax imposed by this Act, to a governmental body that has | ||||||
| 16 | been issued an active tax exemption identification number by | ||||||
| 17 | the Department under Section 1g of the Retailers' Occupation | ||||||
| 18 | Tax Act. If the property is leased in a manner that does not | ||||||
| 19 | qualify for this exemption or is used in any other non-exempt | ||||||
| 20 | manner, the lessor shall be liable for the tax imposed under | ||||||
| 21 | this Act or the Use Tax Act, as the case may be, based on the | ||||||
| 22 | fair market value of the property at the time the | ||||||
| 23 | non-qualifying use occurs. No lessor shall collect or attempt | ||||||
| 24 | to collect an amount (however designated) that purports to | ||||||
| 25 | reimburse that lessor for the tax imposed by this Act or the | ||||||
| 26 | Use Tax Act, as the case may be, if the tax has not been paid | ||||||
| |||||||
| |||||||
| 1 | by the lessor. If a lessor improperly collects any such amount | ||||||
| 2 | from the lessee, the lessee shall have a legal right to claim a | ||||||
| 3 | refund of that amount from the lessor. If, however, that | ||||||
| 4 | amount is not refunded to the lessee for any reason, the lessor | ||||||
| 5 | is liable to pay that amount to the Department. | ||||||
| 6 | (17) Beginning with taxable years ending on or after | ||||||
| 7 | December 31, 1995 and ending with taxable years ending on or | ||||||
| 8 | before December 31, 2004, personal property that is donated | ||||||
| 9 | for disaster relief to be used in a State or federally declared | ||||||
| 10 | disaster area in Illinois or bordering Illinois by a | ||||||
| 11 | manufacturer or retailer that is registered in this State to a | ||||||
| 12 | corporation, society, association, foundation, or institution | ||||||
| 13 | that has been issued a sales tax exemption identification | ||||||
| 14 | number by the Department that assists victims of the disaster | ||||||
| 15 | who reside within the declared disaster area. | ||||||
| 16 | (18) Beginning with taxable years ending on or after | ||||||
| 17 | December 31, 1995 and ending with taxable years ending on or | ||||||
| 18 | before December 31, 2004, personal property that is used in | ||||||
| 19 | the performance of infrastructure repairs in this State, | ||||||
| 20 | including, but not limited to, municipal roads and streets, | ||||||
| 21 | access roads, bridges, sidewalks, waste disposal systems, | ||||||
| 22 | water and sewer line extensions, water distribution and | ||||||
| 23 | purification facilities, storm water drainage and retention | ||||||
| 24 | facilities, and sewage treatment facilities, resulting from a | ||||||
| 25 | State or federally declared disaster in Illinois or bordering | ||||||
| 26 | Illinois when such repairs are initiated on facilities located | ||||||
| |||||||
| |||||||
| 1 | in the declared disaster area within 6 months after the | ||||||
| 2 | disaster. | ||||||
| 3 | (19) Beginning July 1, 1999, game or game birds purchased | ||||||
| 4 | at a "game breeding and hunting preserve area" as that term is | ||||||
| 5 | used in the Wildlife Code. This paragraph is exempt from the | ||||||
| 6 | provisions of Section 3-75. | ||||||
| 7 | (20) A motor vehicle, as that term is defined in Section | ||||||
| 8 | 1-146 of the Illinois Vehicle Code, that is donated to a | ||||||
| 9 | corporation, limited liability company, society, association, | ||||||
| 10 | foundation, or institution that is determined by the | ||||||
| 11 | Department to be organized and operated exclusively for | ||||||
| 12 | educational purposes. For purposes of this exemption, "a | ||||||
| 13 | corporation, limited liability company, society, association, | ||||||
| 14 | foundation, or institution organized and operated exclusively | ||||||
| 15 | for educational purposes" means all tax-supported public | ||||||
| 16 | schools, private schools that offer systematic instruction in | ||||||
| 17 | useful branches of learning by methods common to public | ||||||
| 18 | schools and that compare favorably in their scope and | ||||||
| 19 | intensity with the course of study presented in tax-supported | ||||||
| 20 | schools, and vocational or technical schools or institutes | ||||||
| 21 | organized and operated exclusively to provide a course of | ||||||
| 22 | study of not less than 6 weeks duration and designed to prepare | ||||||
| 23 | individuals to follow a trade or to pursue a manual, | ||||||
| 24 | technical, mechanical, industrial, business, or commercial | ||||||
| 25 | occupation. | ||||||
| 26 | (21) Beginning January 1, 2000, personal property, | ||||||
| |||||||
| |||||||
| 1 | including food, purchased through fundraising events for the | ||||||
| 2 | benefit of a public or private elementary or secondary school, | ||||||
| 3 | a group of those schools, or one or more school districts if | ||||||
| 4 | the events are sponsored by an entity recognized by the school | ||||||
| 5 | district that consists primarily of volunteers and includes | ||||||
| 6 | parents and teachers of the school children. This paragraph | ||||||
| 7 | does not apply to fundraising events (i) for the benefit of | ||||||
| 8 | private home instruction or (ii) for which the fundraising | ||||||
| 9 | entity purchases the personal property sold at the events from | ||||||
| 10 | another individual or entity that sold the property for the | ||||||
| 11 | purpose of resale by the fundraising entity and that profits | ||||||
| 12 | from the sale to the fundraising entity. This paragraph is | ||||||
| 13 | exempt from the provisions of Section 3-75. | ||||||
| 14 | (22) Beginning January 1, 2000 and through December 31, | ||||||
| 15 | 2001, new or used automatic vending machines that prepare and | ||||||
| 16 | serve hot food and beverages, including coffee, soup, and | ||||||
| 17 | other items, and replacement parts for these machines. | ||||||
| 18 | Beginning January 1, 2002 and through June 30, 2003, machines | ||||||
| 19 | and parts for machines used in commercial, coin-operated | ||||||
| 20 | amusement and vending business if a use or occupation tax is | ||||||
| 21 | paid on the gross receipts derived from the use of the | ||||||
| 22 | commercial, coin-operated amusement and vending machines. This | ||||||
| 23 | paragraph is exempt from the provisions of Section 3-75. | ||||||
| 24 | (23) Beginning August 23, 2001 and through June 30, 2016, | ||||||
| 25 | food for human consumption that is to be consumed off the | ||||||
| 26 | premises where it is sold (other than alcoholic beverages, | ||||||
| |||||||
| |||||||
| 1 | soft drinks, and food that has been prepared for immediate | ||||||
| 2 | consumption) and prescription and nonprescription medicines, | ||||||
| 3 | drugs, medical appliances, and insulin, urine testing | ||||||
| 4 | materials, syringes, and needles used by diabetics, for human | ||||||
| 5 | use, when purchased for use by a person receiving medical | ||||||
| 6 | assistance under Article V of the Illinois Public Aid Code who | ||||||
| 7 | resides in a licensed long-term care facility, as defined in | ||||||
| 8 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
| 9 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
| 10 | Specialized Mental Health Rehabilitation Act of 2013. | ||||||
| 11 | (24) Beginning on August 2, 2001 (the effective date of | ||||||
| 12 | Public Act 92-227), computers and communications equipment | ||||||
| 13 | utilized for any hospital purpose and equipment used in the | ||||||
| 14 | diagnosis, analysis, or treatment of hospital patients | ||||||
| 15 | purchased by a lessor who leases the equipment, under a lease | ||||||
| 16 | of one year or longer executed or in effect at the time the | ||||||
| 17 | lessor would otherwise be subject to the tax imposed by this | ||||||
| 18 | Act, to a hospital that has been issued an active tax exemption | ||||||
| 19 | identification number by the Department under Section 1g of | ||||||
| 20 | the Retailers' Occupation Tax Act. If the equipment is leased | ||||||
| 21 | in a manner that does not qualify for this exemption or is used | ||||||
| 22 | in any other nonexempt manner, the lessor shall be liable for | ||||||
| 23 | the tax imposed under this Act or the Use Tax Act, as the case | ||||||
| 24 | may be, based on the fair market value of the property at the | ||||||
| 25 | time the nonqualifying use occurs. No lessor shall collect or | ||||||
| 26 | attempt to collect an amount (however designated) that | ||||||
| |||||||
| |||||||
| 1 | purports to reimburse that lessor for the tax imposed by this | ||||||
| 2 | Act or the Use Tax Act, as the case may be, if the tax has not | ||||||
| 3 | been paid by the lessor. If a lessor improperly collects any | ||||||
| 4 | such amount from the lessee, the lessee shall have a legal | ||||||
| 5 | right to claim a refund of that amount from the lessor. If, | ||||||
| 6 | however, that amount is not refunded to the lessee for any | ||||||
| 7 | reason, the lessor is liable to pay that amount to the | ||||||
| 8 | Department. This paragraph is exempt from the provisions of | ||||||
| 9 | Section 3-75. | ||||||
| 10 | (25) Beginning on August 2, 2001 (the effective date of | ||||||
| 11 | Public Act 92-227), personal property purchased by a lessor | ||||||
| 12 | who leases the property, under a lease of one year or longer | ||||||
| 13 | executed or in effect at the time the lessor would otherwise be | ||||||
| 14 | subject to the tax imposed by this Act, to a governmental body | ||||||
| 15 | that has been issued an active tax exemption identification | ||||||
| 16 | number by the Department under Section 1g of the Retailers' | ||||||
| 17 | Occupation Tax Act. If the property is leased in a manner that | ||||||
| 18 | does not qualify for this exemption or is used in any other | ||||||
| 19 | nonexempt manner, the lessor shall be liable for the tax | ||||||
| 20 | imposed under this Act or the Use Tax Act, as the case may be, | ||||||
| 21 | based on the fair market value of the property at the time the | ||||||
| 22 | nonqualifying use occurs. No lessor shall collect or attempt | ||||||
| 23 | to collect an amount (however designated) that purports to | ||||||
| 24 | reimburse that lessor for the tax imposed by this Act or the | ||||||
| 25 | Use Tax Act, as the case may be, if the tax has not been paid | ||||||
| 26 | by the lessor. If a lessor improperly collects any such amount | ||||||
| |||||||
| |||||||
| 1 | from the lessee, the lessee shall have a legal right to claim a | ||||||
| 2 | refund of that amount from the lessor. If, however, that | ||||||
| 3 | amount is not refunded to the lessee for any reason, the lessor | ||||||
| 4 | is liable to pay that amount to the Department. This paragraph | ||||||
| 5 | is exempt from the provisions of Section 3-75. | ||||||
| 6 | (26) Beginning January 1, 2008, tangible personal property | ||||||
| 7 | used in the construction or maintenance of a community water | ||||||
| 8 | supply, as defined under Section 3.145 of the Environmental | ||||||
| 9 | Protection Act, that is operated by a not-for-profit | ||||||
| 10 | corporation that holds a valid water supply permit issued | ||||||
| 11 | under Title IV of the Environmental Protection Act. This | ||||||
| 12 | paragraph is exempt from the provisions of Section 3-75. | ||||||
| 13 | (27) Beginning January 1, 2010 and continuing through | ||||||
| 14 | December 31, 2029, materials, parts, equipment, components, | ||||||
| 15 | and furnishings incorporated into or upon an aircraft as part | ||||||
| 16 | of the modification, refurbishment, completion, replacement, | ||||||
| 17 | repair, or maintenance of the aircraft. This exemption | ||||||
| 18 | includes consumable supplies used in the modification, | ||||||
| 19 | refurbishment, completion, replacement, repair, and | ||||||
| 20 | maintenance of aircraft. However, until January 1, 2024, this | ||||||
| 21 | exemption excludes any materials, parts, equipment, | ||||||
| 22 | components, and consumable supplies used in the modification, | ||||||
| 23 | replacement, repair, and maintenance of aircraft engines or | ||||||
| 24 | power plants, whether such engines or power plants are | ||||||
| 25 | installed or uninstalled upon any such aircraft. "Consumable | ||||||
| 26 | supplies" include, but are not limited to, adhesive, tape, | ||||||
| |||||||
| |||||||
| 1 | sandpaper, general purpose lubricants, cleaning solution, | ||||||
| 2 | latex gloves, and protective films. | ||||||
| 3 | Beginning January 1, 2010 and continuing through December | ||||||
| 4 | 31, 2023, this exemption applies only to the use of qualifying | ||||||
| 5 | tangible personal property transferred incident to the | ||||||
| 6 | modification, refurbishment, completion, replacement, repair, | ||||||
| 7 | or maintenance of aircraft by persons who (i) hold an Air | ||||||
| 8 | Agency Certificate and are empowered to operate an approved | ||||||
| 9 | repair station by the Federal Aviation Administration, (ii) | ||||||
| 10 | have a Class IV Rating, and (iii) conduct operations in | ||||||
| 11 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
| 12 | From January 1, 2024 through December 31, 2029, this exemption | ||||||
| 13 | applies only to the use of qualifying tangible personal | ||||||
| 14 | property by: (A) persons who modify, refurbish, complete, | ||||||
| 15 | repair, replace, or maintain aircraft and who (i) hold an Air | ||||||
| 16 | Agency Certificate and are empowered to operate an approved | ||||||
| 17 | repair station by the Federal Aviation Administration, (ii) | ||||||
| 18 | have a Class IV Rating, and (iii) conduct operations in | ||||||
| 19 | accordance with Part 145 of the Federal Aviation Regulations; | ||||||
| 20 | and (B) persons who engage in the modification, replacement, | ||||||
| 21 | repair, and maintenance of aircraft engines or power plants | ||||||
| 22 | without regard to whether or not those persons meet the | ||||||
| 23 | qualifications of item (A). | ||||||
| 24 | The exemption does not include aircraft operated by a | ||||||
| 25 | commercial air carrier providing scheduled passenger air | ||||||
| 26 | service pursuant to authority issued under Part 121 or Part | ||||||
| |||||||
| |||||||
| 1 | 129 of the Federal Aviation Regulations. The changes made to | ||||||
| 2 | this paragraph (27) by Public Act 98-534 are declarative of | ||||||
| 3 | existing law. It is the intent of the General Assembly that the | ||||||
| 4 | exemption under this paragraph (27) applies continuously from | ||||||
| 5 | January 1, 2010 through December 31, 2024; however, no claim | ||||||
| 6 | for credit or refund is allowed for taxes paid as a result of | ||||||
| 7 | the disallowance of this exemption on or after January 1, 2015 | ||||||
| 8 | and prior to February 5, 2020 (the effective date of Public Act | ||||||
| 9 | 101-629). | ||||||
| 10 | (28) Tangible personal property purchased by a | ||||||
| 11 | public-facilities corporation, as described in Section | ||||||
| 12 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
| 13 | constructing or furnishing a municipal convention hall, but | ||||||
| 14 | only if the legal title to the municipal convention hall is | ||||||
| 15 | transferred to the municipality without any further | ||||||
| 16 | consideration by or on behalf of the municipality at the time | ||||||
| 17 | of the completion of the municipal convention hall or upon the | ||||||
| 18 | retirement or redemption of any bonds or other debt | ||||||
| 19 | instruments issued by the public-facilities corporation in | ||||||
| 20 | connection with the development of the municipal convention | ||||||
| 21 | hall. This exemption includes existing public-facilities | ||||||
| 22 | corporations as provided in Section 11-65-25 of the Illinois | ||||||
| 23 | Municipal Code. This paragraph is exempt from the provisions | ||||||
| 24 | of Section 3-75. | ||||||
| 25 | (29) Beginning January 1, 2017 and through December 31, | ||||||
| 26 | 2026, menstrual pads, tampons, and menstrual cups. | ||||||
| |||||||
| |||||||
| 1 | (30) Tangible personal property transferred to a purchaser | ||||||
| 2 | who is exempt from the tax imposed by this Act by operation of | ||||||
| 3 | federal law. This paragraph is exempt from the provisions of | ||||||
| 4 | Section 3-75. | ||||||
| 5 | (31) Qualified tangible personal property used in the | ||||||
| 6 | construction or operation of a data center that has been | ||||||
| 7 | granted a certificate of exemption by the Department of | ||||||
| 8 | Commerce and Economic Opportunity, whether that tangible | ||||||
| 9 | personal property is purchased by the owner, operator, or | ||||||
| 10 | tenant of the data center or by a contractor or subcontractor | ||||||
| 11 | of the owner, operator, or tenant. Data centers that would | ||||||
| 12 | have qualified for a certificate of exemption prior to January | ||||||
| 13 | 1, 2020 had Public Act 101-31 been in effect, may apply for and | ||||||
| 14 | obtain an exemption for subsequent purchases of computer | ||||||
| 15 | equipment or enabling software purchased or leased to upgrade, | ||||||
| 16 | supplement, or replace computer equipment or enabling software | ||||||
| 17 | purchased or leased in the original investment that would have | ||||||
| 18 | qualified. | ||||||
| 19 | The Department of Commerce and Economic Opportunity shall | ||||||
| 20 | grant a certificate of exemption under this item (31) to | ||||||
| 21 | qualified data centers as defined by Section 605-1025 of the | ||||||
| 22 | Department of Commerce and Economic Opportunity Law of the | ||||||
| 23 | Civil Administrative Code of Illinois. | ||||||
| 24 | For the purposes of this item (31): | ||||||
| 25 | "Data center" means a building or a series of | ||||||
| 26 | buildings rehabilitated or constructed to house working | ||||||
| |||||||
| |||||||
| 1 | servers in one physical location or multiple sites within | ||||||
| 2 | the State of Illinois. | ||||||
| 3 | "Qualified tangible personal property" means: | ||||||
| 4 | electrical systems and equipment; climate control and | ||||||
| 5 | chilling equipment and systems; mechanical systems and | ||||||
| 6 | equipment; monitoring and secure systems; emergency | ||||||
| 7 | generators; hardware; computers; servers; data storage | ||||||
| 8 | devices; network connectivity equipment; racks; cabinets; | ||||||
| 9 | telecommunications cabling infrastructure; raised floor | ||||||
| 10 | systems; peripheral components or systems; software; | ||||||
| 11 | mechanical, electrical, or plumbing systems; battery | ||||||
| 12 | systems; cooling systems and towers; temperature control | ||||||
| 13 | systems; other cabling; and other data center | ||||||
| 14 | infrastructure equipment and systems necessary to operate | ||||||
| 15 | qualified tangible personal property, including fixtures; | ||||||
| 16 | and component parts of any of the foregoing, including | ||||||
| 17 | installation, maintenance, repair, refurbishment, and | ||||||
| 18 | replacement of qualified tangible personal property to | ||||||
| 19 | generate, transform, transmit, distribute, or manage | ||||||
| 20 | electricity necessary to operate qualified tangible | ||||||
| 21 | personal property; and all other tangible personal | ||||||
| 22 | property that is essential to the operations of a computer | ||||||
| 23 | data center. The term "qualified tangible personal | ||||||
| 24 | property" also includes building materials physically | ||||||
| 25 | incorporated into in to the qualifying data center. To | ||||||
| 26 | document the exemption allowed under this Section, the | ||||||
| |||||||
| |||||||
| 1 | retailer must obtain from the purchaser a copy of the | ||||||
| 2 | certificate of eligibility issued by the Department of | ||||||
| 3 | Commerce and Economic Opportunity. | ||||||
| 4 | This item (31) is exempt from the provisions of Section | ||||||
| 5 | 3-75. | ||||||
| 6 | (32) Beginning July 1, 2022, breast pumps, breast pump | ||||||
| 7 | collection and storage supplies, and breast pump kits. This | ||||||
| 8 | item (32) is exempt from the provisions of Section 3-75. As | ||||||
| 9 | used in this item (32): | ||||||
| 10 | "Breast pump" means an electrically controlled or | ||||||
| 11 | manually controlled pump device designed or marketed to be | ||||||
| 12 | used to express milk from a human breast during lactation, | ||||||
| 13 | including the pump device and any battery, AC adapter, or | ||||||
| 14 | other power supply unit that is used to power the pump | ||||||
| 15 | device and is packaged and sold with the pump device at the | ||||||
| 16 | time of sale. | ||||||
| 17 | "Breast pump collection and storage supplies" means | ||||||
| 18 | items of tangible personal property designed or marketed | ||||||
| 19 | to be used in conjunction with a breast pump to collect | ||||||
| 20 | milk expressed from a human breast and to store collected | ||||||
| 21 | milk until it is ready for consumption. | ||||||
| 22 | "Breast pump collection and storage supplies" | ||||||
| 23 | includes, but is not limited to: breast shields and breast | ||||||
| 24 | shield connectors; breast pump tubes and tubing adapters; | ||||||
| 25 | breast pump valves and membranes; backflow protectors and | ||||||
| 26 | backflow protector adaptors; bottles and bottle caps | ||||||
| |||||||
| |||||||
| 1 | specific to the operation of the breast pump; and breast | ||||||
| 2 | milk storage bags. | ||||||
| 3 | "Breast pump collection and storage supplies" does not | ||||||
| 4 | include: (1) bottles and bottle caps not specific to the | ||||||
| 5 | operation of the breast pump; (2) breast pump travel bags | ||||||
| 6 | and other similar carrying accessories, including ice | ||||||
| 7 | packs, labels, and other similar products; (3) breast pump | ||||||
| 8 | cleaning supplies; (4) nursing bras, bra pads, breast | ||||||
| 9 | shells, and other similar products; and (5) creams, | ||||||
| 10 | ointments, and other similar products that relieve | ||||||
| 11 | breastfeeding-related symptoms or conditions of the | ||||||
| 12 | breasts or nipples, unless sold as part of a breast pump | ||||||
| 13 | kit that is pre-packaged by the breast pump manufacturer | ||||||
| 14 | or distributor. | ||||||
| 15 | "Breast pump kit" means a kit that: (1) contains no | ||||||
| 16 | more than a breast pump, breast pump collection and | ||||||
| 17 | storage supplies, a rechargeable battery for operating the | ||||||
| 18 | breast pump, a breastmilk cooler, bottle stands, ice | ||||||
| 19 | packs, and a breast pump carrying case; and (2) is | ||||||
| 20 | pre-packaged as a breast pump kit by the breast pump | ||||||
| 21 | manufacturer or distributor. | ||||||
| 22 | (33) Tangible personal property sold by or on behalf of | ||||||
| 23 | the State Treasurer pursuant to the Revised Uniform Unclaimed | ||||||
| 24 | Property Act. This item (33) is exempt from the provisions of | ||||||
| 25 | Section 3-75. | ||||||
| 26 | (34) Beginning on January 1, 2024, tangible personal | ||||||
| |||||||
| |||||||
| 1 | property purchased by an active duty member of the armed | ||||||
| 2 | forces of the United States who presents valid military | ||||||
| 3 | identification and purchases the property using a form of | ||||||
| 4 | payment where the federal government is the payor. The member | ||||||
| 5 | of the armed forces must complete, at the point of sale, a form | ||||||
| 6 | prescribed by the Department of Revenue documenting that the | ||||||
| 7 | transaction is eligible for the exemption under this | ||||||
| 8 | paragraph. Retailers must keep the form as documentation of | ||||||
| 9 | the exemption in their records for a period of not less than 6 | ||||||
| 10 | years. "Armed forces of the United States" means the United | ||||||
| 11 | States Army, Navy, Air Force, Marine Corps, or Coast Guard. | ||||||
| 12 | This paragraph is exempt from the provisions of Section 3-75. | ||||||
| 13 | (35) Use by a lessee of the following leased tangible | ||||||
| 14 | personal property: | ||||||
| 15 | (1) software transferred subject to a license that | ||||||
| 16 | meets the following requirements: | ||||||
| 17 | (A) it is evidenced by a written agreement signed | ||||||
| 18 | by the licensor and the customer; | ||||||
| 19 | (i) an electronic agreement in which the | ||||||
| 20 | customer accepts the license by means of an | ||||||
| 21 | electronic signature that is verifiable and can be | ||||||
| 22 | authenticated and is attached to or made part of | ||||||
| 23 | the license will comply with this requirement; | ||||||
| 24 | (ii) a license agreement in which the customer | ||||||
| 25 | electronically accepts the terms by clicking "I | ||||||
| 26 | agree" does not comply with this requirement; | ||||||
| |||||||
| |||||||
| 1 | (B) it restricts the customer's duplication and | ||||||
| 2 | use of the software; | ||||||
| 3 | (C) it prohibits the customer from licensing, | ||||||
| 4 | sublicensing, or transferring the software to a third | ||||||
| 5 | party (except to a related party) without the | ||||||
| 6 | permission and continued control of the licensor; | ||||||
| 7 | (D) the licensor has a policy of providing another | ||||||
| 8 | copy at minimal or no charge if the customer loses or | ||||||
| 9 | damages the software, or of permitting the licensee to | ||||||
| 10 | make and keep an archival copy, and such policy is | ||||||
| 11 | either stated in the license agreement, supported by | ||||||
| 12 | the licensor's books and records, or supported by a | ||||||
| 13 | notarized statement made under penalties of perjury by | ||||||
| 14 | the licensor; and | ||||||
| 15 | (E) the customer must destroy or return all copies | ||||||
| 16 | of the software to the licensor at the end of the | ||||||
| 17 | license period; this provision is deemed to be met, in | ||||||
| 18 | the case of a perpetual license, without being set | ||||||
| 19 | forth in the license agreement; and | ||||||
| 20 | (2) property that is subject to a tax on lease | ||||||
| 21 | receipts imposed by a home rule unit of local government | ||||||
| 22 | if the ordinance imposing that tax was adopted prior to | ||||||
| 23 | January 1, 2023. | ||||||
| 24 | (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70, | ||||||
| 25 | Section 70-10, eff. 4-19-22; 102-700, Article 75, Section | ||||||
| 26 | 75-10, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5, | ||||||
| |||||||
| |||||||
| 1 | Section 5-10, eff. 6-7-23; 103-9, Article 15, Section 15-10, | ||||||
| 2 | eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; | ||||||
| 3 | revised 12-12-23.)
| ||||||
| 4 | (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10) | ||||||
| 5 | Sec. 3-10. Rate of tax. Unless otherwise provided in this | ||||||
| 6 | Section, the tax imposed by this Act is at the rate of 6.25% of | ||||||
| 7 | the selling price of tangible personal property transferred, | ||||||
| 8 | including, on and after January 1, 2025, transferred by lease, | ||||||
| 9 | as an incident to the sale of service, but, for the purpose of | ||||||
| 10 | computing this tax, in no event shall the selling price be less | ||||||
| 11 | than the cost price of the property to the serviceman. | ||||||
| 12 | Beginning on July 1, 2000 and through December 31, 2000, | ||||||
| 13 | with respect to motor fuel, as defined in Section 1.1 of the | ||||||
| 14 | Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of | ||||||
| 15 | the Use Tax Act, the tax is imposed at the rate of 1.25%. | ||||||
| 16 | With respect to gasohol, as defined in the Use Tax Act, the | ||||||
| 17 | tax imposed by this Act applies to (i) 70% of the selling price | ||||||
| 18 | of property transferred as an incident to the sale of service | ||||||
| 19 | on or after January 1, 1990, and before July 1, 2003, (ii) 80% | ||||||
| 20 | of the selling price of property transferred as an incident to | ||||||
| 21 | the sale of service on or after July 1, 2003 and on or before | ||||||
| 22 | July 1, 2017, (iii) 100% of the selling price of property | ||||||
| 23 | transferred as an incident to the sale of service after July 1, | ||||||
| 24 | 2017 and before January 1, 2024, (iv) 90% of the selling price | ||||||
| 25 | of property transferred as an incident to the sale of service | ||||||
| |||||||
| |||||||
| 1 | on or after January 1, 2024 and on or before December 31, 2028, | ||||||
| 2 | and (v) 100% of the selling price of property transferred as an | ||||||
| 3 | incident to the sale of service after December 31, 2028. If, at | ||||||
| 4 | any time, however, the tax under this Act on sales of gasohol, | ||||||
| 5 | as defined in the Use Tax Act, is imposed at the rate of 1.25%, | ||||||
| 6 | then the tax imposed by this Act applies to 100% of the | ||||||
| 7 | proceeds of sales of gasohol made during that time. | ||||||
| 8 | With respect to mid-range ethanol blends, as defined in | ||||||
| 9 | Section 3-44.3 of the Use Tax Act, the tax imposed by this Act | ||||||
| 10 | applies to (i) 80% of the selling price of property | ||||||
| 11 | transferred as an incident to the sale of service on or after | ||||||
| 12 | January 1, 2024 and on or before December 31, 2028 and (ii) | ||||||
| 13 | 100% of the selling price of property transferred as an | ||||||
| 14 | incident to the sale of service after December 31, 2028. If, at | ||||||
| 15 | any time, however, the tax under this Act on sales of mid-range | ||||||
| 16 | ethanol blends is imposed at the rate of 1.25%, then the tax | ||||||
| 17 | imposed by this Act applies to 100% of the selling price of | ||||||
| 18 | mid-range ethanol blends transferred as an incident to the | ||||||
| 19 | sale of service during that time. | ||||||
| 20 | With respect to majority blended ethanol fuel, as defined | ||||||
| 21 | in the Use Tax Act, the tax imposed by this Act does not apply | ||||||
| 22 | to the selling price of property transferred as an incident to | ||||||
| 23 | the sale of service on or after July 1, 2003 and on or before | ||||||
| 24 | December 31, 2028 but applies to 100% of the selling price | ||||||
| 25 | thereafter. | ||||||
| 26 | With respect to biodiesel blends, as defined in the Use | ||||||
| |||||||
| |||||||
| 1 | Tax Act, with no less than 1% and no more than 10% biodiesel, | ||||||
| 2 | the tax imposed by this Act applies to (i) 80% of the selling | ||||||
| 3 | price of property transferred as an incident to the sale of | ||||||
| 4 | service on or after July 1, 2003 and on or before December 31, | ||||||
| 5 | 2018 and (ii) 100% of the proceeds of the selling price after | ||||||
| 6 | December 31, 2018 and before January 1, 2024. On and after | ||||||
| 7 | January 1, 2024 and on or before December 31, 2030, the | ||||||
| 8 | taxation of biodiesel, renewable diesel, and biodiesel blends | ||||||
| 9 | shall be as provided in Section 3-5.1 of the Use Tax Act. If, | ||||||
| 10 | at any time, however, the tax under this Act on sales of | ||||||
| 11 | biodiesel blends, as defined in the Use Tax Act, with no less | ||||||
| 12 | than 1% and no more than 10% biodiesel is imposed at the rate | ||||||
| 13 | of 1.25%, then the tax imposed by this Act applies to 100% of | ||||||
| 14 | the proceeds of sales of biodiesel blends with no less than 1% | ||||||
| 15 | and no more than 10% biodiesel made during that time. | ||||||
| 16 | With respect to biodiesel, as defined in the Use Tax Act, | ||||||
| 17 | and biodiesel blends, as defined in the Use Tax Act, with more | ||||||
| 18 | than 10% but no more than 99% biodiesel, the tax imposed by | ||||||
| 19 | this Act does not apply to the proceeds of the selling price of | ||||||
| 20 | property transferred as an incident to the sale of service on | ||||||
| 21 | or after July 1, 2003 and on or before December 31, 2023. On | ||||||
| 22 | and after January 1, 2024 and on or before December 31, 2030, | ||||||
| 23 | the taxation of biodiesel, renewable diesel, and biodiesel | ||||||
| 24 | blends shall be as provided in Section 3-5.1 of the Use Tax | ||||||
| 25 | Act. | ||||||
| 26 | At the election of any registered serviceman made for each | ||||||
| |||||||
| |||||||
| 1 | fiscal year, sales of service in which the aggregate annual | ||||||
| 2 | cost price of tangible personal property transferred as an | ||||||
| 3 | incident to the sales of service is less than 35%, or 75% in | ||||||
| 4 | the case of servicemen transferring prescription drugs or | ||||||
| 5 | servicemen engaged in graphic arts production, of the | ||||||
| 6 | aggregate annual total gross receipts from all sales of | ||||||
| 7 | service, the tax imposed by this Act shall be based on the | ||||||
| 8 | serviceman's cost price of the tangible personal property | ||||||
| 9 | transferred as an incident to the sale of those services. | ||||||
| 10 | Until July 1, 2022 and beginning again on July 1, 2023, the | ||||||
| 11 | tax shall be imposed at the rate of 1% on food prepared for | ||||||
| 12 | immediate consumption and transferred incident to a sale of | ||||||
| 13 | service subject to this Act or the Service Occupation Tax Act | ||||||
| 14 | by an entity licensed under the Hospital Licensing Act, the | ||||||
| 15 | Nursing Home Care Act, the Assisted Living and Shared Housing | ||||||
| 16 | Act, the ID/DD Community Care Act, the MC/DD Act, the | ||||||
| 17 | Specialized Mental Health Rehabilitation Act of 2013, or the | ||||||
| 18 | Child Care Act of 1969, or an entity that holds a permit issued | ||||||
| 19 | pursuant to the Life Care Facilities Act. Until July 1, 2022 | ||||||
| 20 | and beginning again on July 1, 2023, the tax shall also be | ||||||
| 21 | imposed at the rate of 1% on food for human consumption that is | ||||||
| 22 | to be consumed off the premises where it is sold (other than | ||||||
| 23 | alcoholic beverages, food consisting of or infused with adult | ||||||
| 24 | use cannabis, soft drinks, and food that has been prepared for | ||||||
| 25 | immediate consumption and is not otherwise included in this | ||||||
| 26 | paragraph). | ||||||
| |||||||
| |||||||
| 1 | Beginning on July 1, 2022 and until July 1, 2023, the tax | ||||||
| 2 | shall be imposed at the rate of 0% on food prepared for | ||||||
| 3 | immediate consumption and transferred incident to a sale of | ||||||
| 4 | service subject to this Act or the Service Occupation Tax Act | ||||||
| 5 | by an entity licensed under the Hospital Licensing Act, the | ||||||
| 6 | Nursing Home Care Act, the Assisted Living and Shared Housing | ||||||
| 7 | Act, the ID/DD Community Care Act, the MC/DD Act, the | ||||||
| 8 | Specialized Mental Health Rehabilitation Act of 2013, or the | ||||||
| 9 | Child Care Act of 1969, or an entity that holds a permit issued | ||||||
| 10 | pursuant to the Life Care Facilities Act. Beginning on July 1, | ||||||
| 11 | 2022 and until July 1, 2023, the tax shall also be imposed at | ||||||
| 12 | the rate of 0% on food for human consumption that is to be | ||||||
| 13 | consumed off the premises where it is sold (other than | ||||||
| 14 | alcoholic beverages, food consisting of or infused with adult | ||||||
| 15 | use cannabis, soft drinks, and food that has been prepared for | ||||||
| 16 | immediate consumption and is not otherwise included in this | ||||||
| 17 | paragraph). | ||||||
| 18 | The tax shall also be imposed at the rate of 1% on | ||||||
| 19 | prescription and nonprescription medicines, drugs, medical | ||||||
| 20 | appliances, products classified as Class III medical devices | ||||||
| 21 | by the United States Food and Drug Administration that are | ||||||
| 22 | used for cancer treatment pursuant to a prescription, as well | ||||||
| 23 | as any accessories and components related to those devices, | ||||||
| 24 | modifications to a motor vehicle for the purpose of rendering | ||||||
| 25 | it usable by a person with a disability, and insulin, blood | ||||||
| 26 | sugar testing materials, syringes, and needles used by human | ||||||
| |||||||
| |||||||
| 1 | diabetics. For the purposes of this Section, until September | ||||||
| 2 | 1, 2009: the term "soft drinks" means any complete, finished, | ||||||
| 3 | ready-to-use, non-alcoholic drink, whether carbonated or not, | ||||||
| 4 | including, but not limited to, soda water, cola, fruit juice, | ||||||
| 5 | vegetable juice, carbonated water, and all other preparations | ||||||
| 6 | commonly known as soft drinks of whatever kind or description | ||||||
| 7 | that are contained in any closed or sealed bottle, can, | ||||||
| 8 | carton, or container, regardless of size; but "soft drinks" | ||||||
| 9 | does not include coffee, tea, non-carbonated water, infant | ||||||
| 10 | formula, milk or milk products as defined in the Grade A | ||||||
| 11 | Pasteurized Milk and Milk Products Act, or drinks containing | ||||||
| 12 | 50% or more natural fruit or vegetable juice. | ||||||
| 13 | Notwithstanding any other provisions of this Act, | ||||||
| 14 | beginning September 1, 2009, "soft drinks" means non-alcoholic | ||||||
| 15 | beverages that contain natural or artificial sweeteners. "Soft | ||||||
| 16 | drinks" does not include beverages that contain milk or milk | ||||||
| 17 | products, soy, rice or similar milk substitutes, or greater | ||||||
| 18 | than 50% of vegetable or fruit juice by volume. | ||||||
| 19 | Until August 1, 2009, and notwithstanding any other | ||||||
| 20 | provisions of this Act, "food for human consumption that is to | ||||||
| 21 | be consumed off the premises where it is sold" includes all | ||||||
| 22 | food sold through a vending machine, except soft drinks and | ||||||
| 23 | food products that are dispensed hot from a vending machine, | ||||||
| 24 | regardless of the location of the vending machine. Beginning | ||||||
| 25 | August 1, 2009, and notwithstanding any other provisions of | ||||||
| 26 | this Act, "food for human consumption that is to be consumed | ||||||
| |||||||
| |||||||
| 1 | off the premises where it is sold" includes all food sold | ||||||
| 2 | through a vending machine, except soft drinks, candy, and food | ||||||
| 3 | products that are dispensed hot from a vending machine, | ||||||
| 4 | regardless of the location of the vending machine. | ||||||
| 5 | Notwithstanding any other provisions of this Act, | ||||||
| 6 | beginning September 1, 2009, "food for human consumption that | ||||||
| 7 | is to be consumed off the premises where it is sold" does not | ||||||
| 8 | include candy. For purposes of this Section, "candy" means a | ||||||
| 9 | preparation of sugar, honey, or other natural or artificial | ||||||
| 10 | sweeteners in combination with chocolate, fruits, nuts or | ||||||
| 11 | other ingredients or flavorings in the form of bars, drops, or | ||||||
| 12 | pieces. "Candy" does not include any preparation that contains | ||||||
| 13 | flour or requires refrigeration. | ||||||
| 14 | Notwithstanding any other provisions of this Act, | ||||||
| 15 | beginning September 1, 2009, "nonprescription medicines and | ||||||
| 16 | drugs" does not include grooming and hygiene products. For | ||||||
| 17 | purposes of this Section, "grooming and hygiene products" | ||||||
| 18 | includes, but is not limited to, soaps and cleaning solutions, | ||||||
| 19 | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | ||||||
| 20 | lotions and screens, unless those products are available by | ||||||
| 21 | prescription only, regardless of whether the products meet the | ||||||
| 22 | definition of "over-the-counter-drugs". For the purposes of | ||||||
| 23 | this paragraph, "over-the-counter-drug" means a drug for human | ||||||
| 24 | use that contains a label that identifies the product as a drug | ||||||
| 25 | as required by 21 CFR 201.66. The "over-the-counter-drug" | ||||||
| 26 | label includes: | ||||||
| |||||||
| |||||||
| 1 | (A) a "Drug Facts" panel; or | ||||||
| 2 | (B) a statement of the "active ingredient(s)" with a | ||||||
| 3 | list of those ingredients contained in the compound, | ||||||
| 4 | substance or preparation. | ||||||
| 5 | Beginning on January 1, 2014 (the effective date of Public | ||||||
| 6 | Act 98-122), "prescription and nonprescription medicines and | ||||||
| 7 | drugs" includes medical cannabis purchased from a registered | ||||||
| 8 | dispensing organization under the Compassionate Use of Medical | ||||||
| 9 | Cannabis Program Act. | ||||||
| 10 | As used in this Section, "adult use cannabis" means | ||||||
| 11 | cannabis subject to tax under the Cannabis Cultivation | ||||||
| 12 | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law | ||||||
| 13 | and does not include cannabis subject to tax under the | ||||||
| 14 | Compassionate Use of Medical Cannabis Program Act. | ||||||
| 15 | If the property that is acquired from a serviceman is | ||||||
| 16 | acquired outside Illinois and used outside Illinois before | ||||||
| 17 | being brought to Illinois for use here and is taxable under | ||||||
| 18 | this Act, the "selling price" on which the tax is computed | ||||||
| 19 | shall be reduced by an amount that represents a reasonable | ||||||
| 20 | allowance for depreciation for the period of prior | ||||||
| 21 | out-of-state use. No depreciation is allowed in cases where | ||||||
| 22 | the tax under this Act is imposed on lease receipts. | ||||||
| 23 | (Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; | ||||||
| 24 | 102-700, Article 20, Section 20-10, eff. 4-19-22; 102-700, | ||||||
| 25 | Article 60, Section 60-20, eff. 4-19-22; 103-9, eff. 6-7-23; | ||||||
| 26 | 103-154, eff. 6-30-23.)
| ||||||
| |||||||
| |||||||
| 1 | (35 ILCS 110/9) (from Ch. 120, par. 439.39) | ||||||
| 2 | Sec. 9. Each serviceman required or authorized to collect | ||||||
| 3 | the tax herein imposed shall pay to the Department the amount | ||||||
| 4 | of such tax (except as otherwise provided) at the time when he | ||||||
| 5 | is required to file his return for the period during which such | ||||||
| 6 | tax was collected, less a discount of 2.1% prior to January 1, | ||||||
| 7 | 1990 and 1.75% on and after January 1, 1990, or $5 per calendar | ||||||
| 8 | year, whichever is greater, which is allowed to reimburse the | ||||||
| 9 | serviceman for expenses incurred in collecting the tax, | ||||||
| 10 | keeping records, preparing and filing returns, remitting the | ||||||
| 11 | tax and supplying data to the Department on request. When | ||||||
| 12 | determining the discount allowed under this Section, | ||||||
| 13 | servicemen shall include the amount of tax that would have | ||||||
| 14 | been due at the 1% rate but for the 0% rate imposed under this | ||||||
| 15 | amendatory Act of the 102nd General Assembly. The discount | ||||||
| 16 | under this Section is not allowed for the 1.25% portion of | ||||||
| 17 | taxes paid on aviation fuel that is subject to the revenue use | ||||||
| 18 | requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The | ||||||
| 19 | discount allowed under this Section is allowed only for | ||||||
| 20 | returns that are filed in the manner required by this Act. The | ||||||
| 21 | Department may disallow the discount for servicemen whose | ||||||
| 22 | certificate of registration is revoked at the time the return | ||||||
| 23 | is filed, but only if the Department's decision to revoke the | ||||||
| 24 | certificate of registration has become final. A serviceman | ||||||
| 25 | need not remit that part of any tax collected by him to the | ||||||
| |||||||
| |||||||
| 1 | extent that he is required to pay and does pay the tax imposed | ||||||
| 2 | by the Service Occupation Tax Act with respect to his sale of | ||||||
| 3 | service involving the incidental transfer by him of the same | ||||||
| 4 | property. | ||||||
| 5 | Except as provided hereinafter in this Section, on or | ||||||
| 6 | before the twentieth day of each calendar month, such | ||||||
| 7 | serviceman shall file a return for the preceding calendar | ||||||
| 8 | month in accordance with reasonable Rules and Regulations to | ||||||
| 9 | be promulgated by the Department. Such return shall be filed | ||||||
| 10 | on a form prescribed by the Department and shall contain such | ||||||
| 11 | information as the Department may reasonably require. The | ||||||
| 12 | return shall include the gross receipts which were received | ||||||
| 13 | during the preceding calendar month or quarter on the | ||||||
| 14 | following items upon which tax would have been due but for the | ||||||
| 15 | 0% rate imposed under this amendatory Act of the 102nd General | ||||||
| 16 | Assembly: (i) food for human consumption that is to be | ||||||
| 17 | consumed off the premises where it is sold (other than | ||||||
| 18 | alcoholic beverages, food consisting of or infused with adult | ||||||
| 19 | use cannabis, soft drinks, and food that has been prepared for | ||||||
| 20 | immediate consumption); and (ii) food prepared for immediate | ||||||
| 21 | consumption and transferred incident to a sale of service | ||||||
| 22 | subject to this Act or the Service Occupation Tax Act by an | ||||||
| 23 | entity licensed under the Hospital Licensing Act, the Nursing | ||||||
| 24 | Home Care Act, the Assisted Living and Shared Housing Act, the | ||||||
| 25 | ID/DD Community Care Act, the MC/DD Act, the Specialized | ||||||
| 26 | Mental Health Rehabilitation Act of 2013, or the Child Care | ||||||
| |||||||
| |||||||
| 1 | Act of 1969, or an entity that holds a permit issued pursuant | ||||||
| 2 | to the Life Care Facilities Act. The return shall also include | ||||||
| 3 | the amount of tax that would have been due on the items listed | ||||||
| 4 | in the previous sentence but for the 0% rate imposed under this | ||||||
| 5 | amendatory Act of the 102nd General Assembly. | ||||||
| 6 | In the case of leases, except as otherwise provided in | ||||||
| 7 | this Act, the lessor, in collecting the tax, may collect for | ||||||
| 8 | each tax return period, only the tax applicable to that part of | ||||||
| 9 | the selling price actually received during such tax return | ||||||
| 10 | period. | ||||||
| 11 | On and after January 1, 2018, with respect to servicemen | ||||||
| 12 | whose annual gross receipts average $20,000 or more, all | ||||||
| 13 | returns required to be filed pursuant to this Act shall be | ||||||
| 14 | filed electronically. Servicemen who demonstrate that they do | ||||||
| 15 | not have access to the Internet or demonstrate hardship in | ||||||
| 16 | filing electronically may petition the Department to waive the | ||||||
| 17 | electronic filing requirement. | ||||||
| 18 | The Department may require returns to be filed on a | ||||||
| 19 | quarterly basis. If so required, a return for each calendar | ||||||
| 20 | quarter shall be filed on or before the twentieth day of the | ||||||
| 21 | calendar month following the end of such calendar quarter. The | ||||||
| 22 | taxpayer shall also file a return with the Department for each | ||||||
| 23 | of the first two months of each calendar quarter, on or before | ||||||
| 24 | the twentieth day of the following calendar month, stating: | ||||||
| 25 | 1. The name of the seller; | ||||||
| 26 | 2. The address of the principal place of business from | ||||||
| |||||||
| |||||||
| 1 | which he engages in business as a serviceman in this | ||||||
| 2 | State; | ||||||
| 3 | 3. The total amount of taxable receipts received by | ||||||
| 4 | him during the preceding calendar month, including | ||||||
| 5 | receipts from charge and time sales, but less all | ||||||
| 6 | deductions allowed by law; | ||||||
| 7 | 4. The amount of credit provided in Section 2d of this | ||||||
| 8 | Act; | ||||||
| 9 | 5. The amount of tax due; | ||||||
| 10 | 5-5. The signature of the taxpayer; and | ||||||
| 11 | 6. Such other reasonable information as the Department | ||||||
| 12 | may require. | ||||||
| 13 | Each serviceman required or authorized to collect the tax | ||||||
| 14 | imposed by this Act on aviation fuel transferred as an | ||||||
| 15 | incident of a sale of service in this State during the | ||||||
| 16 | preceding calendar month shall, instead of reporting and | ||||||
| 17 | paying tax on aviation fuel as otherwise required by this | ||||||
| 18 | Section, report and pay such tax on a separate aviation fuel | ||||||
| 19 | tax return. The requirements related to the return shall be as | ||||||
| 20 | otherwise provided in this Section. Notwithstanding any other | ||||||
| 21 | provisions of this Act to the contrary, servicemen collecting | ||||||
| 22 | tax on aviation fuel shall file all aviation fuel tax returns | ||||||
| 23 | and shall make all aviation fuel tax payments by electronic | ||||||
| 24 | means in the manner and form required by the Department. For | ||||||
| 25 | purposes of this Section, "aviation fuel" means jet fuel and | ||||||
| 26 | aviation gasoline. | ||||||
| |||||||
| |||||||
| 1 | If a taxpayer fails to sign a return within 30 days after | ||||||
| 2 | the proper notice and demand for signature by the Department, | ||||||
| 3 | the return shall be considered valid and any amount shown to be | ||||||
| 4 | due on the return shall be deemed assessed. | ||||||
| 5 | Notwithstanding any other provision of this Act to the | ||||||
| 6 | contrary, servicemen subject to tax on cannabis shall file all | ||||||
| 7 | cannabis tax returns and shall make all cannabis tax payments | ||||||
| 8 | by electronic means in the manner and form required by the | ||||||
| 9 | Department. | ||||||
| 10 | Beginning October 1, 1993, a taxpayer who has an average | ||||||
| 11 | monthly tax liability of $150,000 or more shall make all | ||||||
| 12 | payments required by rules of the Department by electronic | ||||||
| 13 | funds transfer. Beginning October 1, 1994, a taxpayer who has | ||||||
| 14 | an average monthly tax liability of $100,000 or more shall | ||||||
| 15 | make all payments required by rules of the Department by | ||||||
| 16 | electronic funds transfer. Beginning October 1, 1995, a | ||||||
| 17 | taxpayer who has an average monthly tax liability of $50,000 | ||||||
| 18 | or more shall make all payments required by rules of the | ||||||
| 19 | Department by electronic funds transfer. Beginning October 1, | ||||||
| 20 | 2000, a taxpayer who has an annual tax liability of $200,000 or | ||||||
| 21 | more shall make all payments required by rules of the | ||||||
| 22 | Department by electronic funds transfer. The term "annual tax | ||||||
| 23 | liability" shall be the sum of the taxpayer's liabilities | ||||||
| 24 | under this Act, and under all other State and local occupation | ||||||
| 25 | and use tax laws administered by the Department, for the | ||||||
| 26 | immediately preceding calendar year. The term "average monthly | ||||||
| |||||||
| |||||||
| 1 | tax liability" means the sum of the taxpayer's liabilities | ||||||
| 2 | under this Act, and under all other State and local occupation | ||||||
| 3 | and use tax laws administered by the Department, for the | ||||||
| 4 | immediately preceding calendar year divided by 12. Beginning | ||||||
| 5 | on October 1, 2002, a taxpayer who has a tax liability in the | ||||||
| 6 | amount set forth in subsection (b) of Section 2505-210 of the | ||||||
| 7 | Department of Revenue Law shall make all payments required by | ||||||
| 8 | rules of the Department by electronic funds transfer. | ||||||
| 9 | Before August 1 of each year beginning in 1993, the | ||||||
| 10 | Department shall notify all taxpayers required to make | ||||||
| 11 | payments by electronic funds transfer. All taxpayers required | ||||||
| 12 | to make payments by electronic funds transfer shall make those | ||||||
| 13 | payments for a minimum of one year beginning on October 1. | ||||||
| 14 | Any taxpayer not required to make payments by electronic | ||||||
| 15 | funds transfer may make payments by electronic funds transfer | ||||||
| 16 | with the permission of the Department. | ||||||
| 17 | All taxpayers required to make payment by electronic funds | ||||||
| 18 | transfer and any taxpayers authorized to voluntarily make | ||||||
| 19 | payments by electronic funds transfer shall make those | ||||||
| 20 | payments in the manner authorized by the Department. | ||||||
| 21 | The Department shall adopt such rules as are necessary to | ||||||
| 22 | effectuate a program of electronic funds transfer and the | ||||||
| 23 | requirements of this Section. | ||||||
| 24 | If the serviceman is otherwise required to file a monthly | ||||||
| 25 | return and if the serviceman's average monthly tax liability | ||||||
| 26 | to the Department does not exceed $200, the Department may | ||||||
| |||||||
| |||||||
| 1 | authorize his returns to be filed on a quarter annual basis, | ||||||
| 2 | with the return for January, February and March of a given year | ||||||
| 3 | being due by April 20 of such year; with the return for April, | ||||||
| 4 | May and June of a given year being due by July 20 of such year; | ||||||
| 5 | with the return for July, August and September of a given year | ||||||
| 6 | being due by October 20 of such year, and with the return for | ||||||
| 7 | October, November and December of a given year being due by | ||||||
| 8 | January 20 of the following year. | ||||||
| 9 | If the serviceman is otherwise required to file a monthly | ||||||
| 10 | or quarterly return and if the serviceman's average monthly | ||||||
| 11 | tax liability to the Department does not exceed $50, the | ||||||
| 12 | Department may authorize his returns to be filed on an annual | ||||||
| 13 | basis, with the return for a given year being due by January 20 | ||||||
| 14 | of the following year. | ||||||
| 15 | Such quarter annual and annual returns, as to form and | ||||||
| 16 | substance, shall be subject to the same requirements as | ||||||
| 17 | monthly returns. | ||||||
| 18 | Notwithstanding any other provision in this Act concerning | ||||||
| 19 | the time within which a serviceman may file his return, in the | ||||||
| 20 | case of any serviceman who ceases to engage in a kind of | ||||||
| 21 | business which makes him responsible for filing returns under | ||||||
| 22 | this Act, such serviceman shall file a final return under this | ||||||
| 23 | Act with the Department not more than 1 month after | ||||||
| 24 | discontinuing such business. | ||||||
| 25 | Where a serviceman collects the tax with respect to the | ||||||
| 26 | selling price of property which he sells and the purchaser | ||||||
| |||||||
| |||||||
| 1 | thereafter returns such property and the serviceman refunds | ||||||
| 2 | the selling price thereof to the purchaser, such serviceman | ||||||
| 3 | shall also refund, to the purchaser, the tax so collected from | ||||||
| 4 | the purchaser. When filing his return for the period in which | ||||||
| 5 | he refunds such tax to the purchaser, the serviceman may | ||||||
| 6 | deduct the amount of the tax so refunded by him to the | ||||||
| 7 | purchaser from any other Service Use Tax, Service Occupation | ||||||
| 8 | Tax, retailers' occupation tax or use tax which such | ||||||
| 9 | serviceman may be required to pay or remit to the Department, | ||||||
| 10 | as shown by such return, provided that the amount of the tax to | ||||||
| 11 | be deducted shall previously have been remitted to the | ||||||
| 12 | Department by such serviceman. If the serviceman shall not | ||||||
| 13 | previously have remitted the amount of such tax to the | ||||||
| 14 | Department, he shall be entitled to no deduction hereunder | ||||||
| 15 | upon refunding such tax to the purchaser. | ||||||
| 16 | Any serviceman filing a return hereunder shall also | ||||||
| 17 | include the total tax upon the selling price of tangible | ||||||
| 18 | personal property purchased for use by him as an incident to a | ||||||
| 19 | sale of service, and such serviceman shall remit the amount of | ||||||
| 20 | such tax to the Department when filing such return. | ||||||
| 21 | If experience indicates such action to be practicable, the | ||||||
| 22 | Department may prescribe and furnish a combination or joint | ||||||
| 23 | return which will enable servicemen, who are required to file | ||||||
| 24 | returns hereunder and also under the Service Occupation Tax | ||||||
| 25 | Act, to furnish all the return information required by both | ||||||
| 26 | Acts on the one form. | ||||||
| |||||||
| |||||||
| 1 | Where the serviceman has more than one business registered | ||||||
| 2 | with the Department under separate registration hereunder, | ||||||
| 3 | such serviceman shall not file each return that is due as a | ||||||
| 4 | single return covering all such registered businesses, but | ||||||
| 5 | shall file separate returns for each such registered business. | ||||||
| 6 | Beginning January 1, 1990, each month the Department shall | ||||||
| 7 | pay into the State and Local Tax Reform Fund, a special fund in | ||||||
| 8 | the State Treasury, the net revenue realized for the preceding | ||||||
| 9 | month from the 1% tax imposed under this Act. | ||||||
| 10 | Beginning January 1, 1990, each month the Department shall | ||||||
| 11 | pay into the State and Local Sales Tax Reform Fund 20% of the | ||||||
| 12 | net revenue realized for the preceding month from the 6.25% | ||||||
| 13 | general rate on transfers of tangible personal property, other | ||||||
| 14 | than (i) tangible personal property which is purchased outside | ||||||
| 15 | Illinois at retail from a retailer and which is titled or | ||||||
| 16 | registered by an agency of this State's government and (ii) | ||||||
| 17 | aviation fuel sold on or after December 1, 2019. This | ||||||
| 18 | exception for aviation fuel only applies for so long as the | ||||||
| 19 | revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. | ||||||
| 20 | 47133 are binding on the State. | ||||||
| 21 | For aviation fuel sold on or after December 1, 2019, each | ||||||
| 22 | month the Department shall pay into the State Aviation Program | ||||||
| 23 | Fund 20% of the net revenue realized for the preceding month | ||||||
| 24 | from the 6.25% general rate on the selling price of aviation | ||||||
| 25 | fuel, less an amount estimated by the Department to be | ||||||
| 26 | required for refunds of the 20% portion of the tax on aviation | ||||||
| |||||||
| |||||||
| 1 | fuel under this Act, which amount shall be deposited into the | ||||||
| 2 | Aviation Fuel Sales Tax Refund Fund. The Department shall only | ||||||
| 3 | pay moneys into the State Aviation Program Fund and the | ||||||
| 4 | Aviation Fuel Sales Tax Refund Fund under this Act for so long | ||||||
| 5 | as the revenue use requirements of 49 U.S.C. 47107(b) and 49 | ||||||
| 6 | U.S.C. 47133 are binding on the State. | ||||||
| 7 | Beginning August 1, 2000, each month the Department shall | ||||||
| 8 | pay into the State and Local Sales Tax Reform Fund 100% of the | ||||||
| 9 | net revenue realized for the preceding month from the 1.25% | ||||||
| 10 | rate on the selling price of motor fuel and gasohol. | ||||||
| 11 | Beginning October 1, 2009, each month the Department shall | ||||||
| 12 | pay into the Capital Projects Fund an amount that is equal to | ||||||
| 13 | an amount estimated by the Department to represent 80% of the | ||||||
| 14 | net revenue realized for the preceding month from the sale of | ||||||
| 15 | candy, grooming and hygiene products, and soft drinks that had | ||||||
| 16 | been taxed at a rate of 1% prior to September 1, 2009 but that | ||||||
| 17 | are now taxed at 6.25%. | ||||||
| 18 | Beginning July 1, 2013, each month the Department shall | ||||||
| 19 | pay into the Underground Storage Tank Fund from the proceeds | ||||||
| 20 | collected under this Act, the Use Tax Act, the Service | ||||||
| 21 | Occupation Tax Act, and the Retailers' Occupation Tax Act an | ||||||
| 22 | amount equal to the average monthly deficit in the Underground | ||||||
| 23 | Storage Tank Fund during the prior year, as certified annually | ||||||
| 24 | by the Illinois Environmental Protection Agency, but the total | ||||||
| 25 | payment into the Underground Storage Tank Fund under this Act, | ||||||
| 26 | the Use Tax Act, the Service Occupation Tax Act, and the | ||||||
| |||||||
| |||||||
| 1 | Retailers' Occupation Tax Act shall not exceed $18,000,000 in | ||||||
| 2 | any State fiscal year. As used in this paragraph, the "average | ||||||
| 3 | monthly deficit" shall be equal to the difference between the | ||||||
| 4 | average monthly claims for payment by the fund and the average | ||||||
| 5 | monthly revenues deposited into the fund, excluding payments | ||||||
| 6 | made pursuant to this paragraph. | ||||||
| 7 | Beginning July 1, 2015, of the remainder of the moneys | ||||||
| 8 | received by the Department under the Use Tax Act, this Act, the | ||||||
| 9 | Service Occupation Tax Act, and the Retailers' Occupation Tax | ||||||
| 10 | Act, each month the Department shall deposit $500,000 into the | ||||||
| 11 | State Crime Laboratory Fund. | ||||||
| 12 | Of the remainder of the moneys received by the Department | ||||||
| 13 | pursuant to this Act, (a) 1.75% thereof shall be paid into the | ||||||
| 14 | Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on | ||||||
| 15 | and after July 1, 1989, 3.8% thereof shall be paid into the | ||||||
| 16 | Build Illinois Fund; provided, however, that if in any fiscal | ||||||
| 17 | year the sum of (1) the aggregate of 2.2% or 3.8%, as the case | ||||||
| 18 | may be, of the moneys received by the Department and required | ||||||
| 19 | to be paid into the Build Illinois Fund pursuant to Section 3 | ||||||
| 20 | of the Retailers' Occupation Tax Act, Section 9 of the Use Tax | ||||||
| 21 | Act, Section 9 of the Service Use Tax Act, and Section 9 of the | ||||||
| 22 | Service Occupation Tax Act, such Acts being hereinafter called | ||||||
| 23 | the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case | ||||||
| 24 | may be, of moneys being hereinafter called the "Tax Act | ||||||
| 25 | Amount", and (2) the amount transferred to the Build Illinois | ||||||
| 26 | Fund from the State and Local Sales Tax Reform Fund shall be | ||||||
| |||||||
| |||||||
| 1 | less than the Annual Specified Amount (as defined in Section 3 | ||||||
| 2 | of the Retailers' Occupation Tax Act), an amount equal to the | ||||||
| 3 | difference shall be immediately paid into the Build Illinois | ||||||
| 4 | Fund from other moneys received by the Department pursuant to | ||||||
| 5 | the Tax Acts; and further provided, that if on the last | ||||||
| 6 | business day of any month the sum of (1) the Tax Act Amount | ||||||
| 7 | required to be deposited into the Build Illinois Bond Account | ||||||
| 8 | in the Build Illinois Fund during such month and (2) the amount | ||||||
| 9 | transferred during such month to the Build Illinois Fund from | ||||||
| 10 | the State and Local Sales Tax Reform Fund shall have been less | ||||||
| 11 | than 1/12 of the Annual Specified Amount, an amount equal to | ||||||
| 12 | the difference shall be immediately paid into the Build | ||||||
| 13 | Illinois Fund from other moneys received by the Department | ||||||
| 14 | pursuant to the Tax Acts; and, further provided, that in no | ||||||
| 15 | event shall the payments required under the preceding proviso | ||||||
| 16 | result in aggregate payments into the Build Illinois Fund | ||||||
| 17 | pursuant to this clause (b) for any fiscal year in excess of | ||||||
| 18 | the greater of (i) the Tax Act Amount or (ii) the Annual | ||||||
| 19 | Specified Amount for such fiscal year; and, further provided, | ||||||
| 20 | that the amounts payable into the Build Illinois Fund under | ||||||
| 21 | this clause (b) shall be payable only until such time as the | ||||||
| 22 | aggregate amount on deposit under each trust indenture | ||||||
| 23 | securing Bonds issued and outstanding pursuant to the Build | ||||||
| 24 | Illinois Bond Act is sufficient, taking into account any | ||||||
| 25 | future investment income, to fully provide, in accordance with | ||||||
| 26 | such indenture, for the defeasance of or the payment of the | ||||||
| |||||||
| |||||||
| 1 | principal of, premium, if any, and interest on the Bonds | ||||||
| 2 | secured by such indenture and on any Bonds expected to be | ||||||
| 3 | issued thereafter and all fees and costs payable with respect | ||||||
| 4 | thereto, all as certified by the Director of the Bureau of the | ||||||
| 5 | Budget (now Governor's Office of Management and Budget). If on | ||||||
| 6 | the last business day of any month in which Bonds are | ||||||
| 7 | outstanding pursuant to the Build Illinois Bond Act, the | ||||||
| 8 | aggregate of the moneys deposited in the Build Illinois Bond | ||||||
| 9 | Account in the Build Illinois Fund in such month shall be less | ||||||
| 10 | than the amount required to be transferred in such month from | ||||||
| 11 | the Build Illinois Bond Account to the Build Illinois Bond | ||||||
| 12 | Retirement and Interest Fund pursuant to Section 13 of the | ||||||
| 13 | Build Illinois Bond Act, an amount equal to such deficiency | ||||||
| 14 | shall be immediately paid from other moneys received by the | ||||||
| 15 | Department pursuant to the Tax Acts to the Build Illinois | ||||||
| 16 | Fund; provided, however, that any amounts paid to the Build | ||||||
| 17 | Illinois Fund in any fiscal year pursuant to this sentence | ||||||
| 18 | shall be deemed to constitute payments pursuant to clause (b) | ||||||
| 19 | of the preceding sentence and shall reduce the amount | ||||||
| 20 | otherwise payable for such fiscal year pursuant to clause (b) | ||||||
| 21 | of the preceding sentence. The moneys received by the | ||||||
| 22 | Department pursuant to this Act and required to be deposited | ||||||
| 23 | into the Build Illinois Fund are subject to the pledge, claim | ||||||
| 24 | and charge set forth in Section 12 of the Build Illinois Bond | ||||||
| 25 | Act. | ||||||
| 26 | Subject to payment of amounts into the Build Illinois Fund | ||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| 1 | as provided in the preceding paragraph or in any amendment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2 | thereto hereafter enacted, the following specified monthly | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3 | installment of the amount requested in the certificate of the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4 | Chairman of the Metropolitan Pier and Exposition Authority | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 5 | provided under Section 8.25f of the State Finance Act, but not | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 6 | in excess of the sums designated as "Total Deposit", shall be | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 7 | deposited in the aggregate from collections under Section 9 of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 8 | the Use Tax Act, Section 9 of the Service Use Tax Act, Section | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 9 | 9 of the Service Occupation Tax Act, and Section 3 of the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 10 | Retailers' Occupation Tax Act into the McCormick Place | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 11 | Expansion Project Fund in the specified fiscal years.
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| 14 | Beginning July 20, 1993 and in each month of each fiscal | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 15 | year thereafter, one-eighth of the amount requested in the | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 16 | certificate of the Chairman of the Metropolitan Pier and | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 17 | Exposition Authority for that fiscal year, less the amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 18 | deposited into the McCormick Place Expansion Project Fund by | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 19 | the State Treasurer in the respective month under subsection | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 20 | (g) of Section 13 of the Metropolitan Pier and Exposition | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 21 | Authority Act, plus cumulative deficiencies in the deposits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 22 | required under this Section for previous months and years, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 23 | shall be deposited into the McCormick Place Expansion Project | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 24 | Fund, until the full amount requested for the fiscal year, but | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 25 | not in excess of the amount specified above as "Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 26 | Deposit", has been deposited. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||
| |||||||
| 1 | Subject to payment of amounts into the Capital Projects | ||||||
| 2 | Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, | ||||||
| 3 | and the McCormick Place Expansion Project Fund pursuant to the | ||||||
| 4 | preceding paragraphs or in any amendments thereto hereafter | ||||||
| 5 | enacted, for aviation fuel sold on or after December 1, 2019, | ||||||
| 6 | the Department shall each month deposit into the Aviation Fuel | ||||||
| 7 | Sales Tax Refund Fund an amount estimated by the Department to | ||||||
| 8 | be required for refunds of the 80% portion of the tax on | ||||||
| 9 | aviation fuel under this Act. The Department shall only | ||||||
| 10 | deposit moneys into the Aviation Fuel Sales Tax Refund Fund | ||||||
| 11 | under this paragraph for so long as the revenue use | ||||||
| 12 | requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are | ||||||
| 13 | binding on the State. | ||||||
| 14 | Subject to payment of amounts into the Build Illinois Fund | ||||||
| 15 | and the McCormick Place Expansion Project Fund pursuant to the | ||||||
| 16 | preceding paragraphs or in any amendments thereto hereafter | ||||||
| 17 | enacted, beginning July 1, 1993 and ending on September 30, | ||||||
| 18 | 2013, the Department shall each month pay into the Illinois | ||||||
| 19 | Tax Increment Fund 0.27% of 80% of the net revenue realized for | ||||||
| 20 | the preceding month from the 6.25% general rate on the selling | ||||||
| 21 | price of tangible personal property. | ||||||
| 22 | Subject to payment of amounts into the Build Illinois | ||||||
| 23 | Fund, the McCormick Place Expansion Project Fund, the Illinois | ||||||
| 24 | Tax Increment Fund, pursuant to the preceding paragraphs or in | ||||||
| 25 | any amendments to this Section hereafter enacted, beginning on | ||||||
| 26 | the first day of the first calendar month to occur on or after | ||||||
| |||||||
| |||||||
| 1 | August 26, 2014 (the effective date of Public Act 98-1098), | ||||||
| 2 | each month, from the collections made under Section 9 of the | ||||||
| 3 | Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of | ||||||
| 4 | the Service Occupation Tax Act, and Section 3 of the | ||||||
| 5 | Retailers' Occupation Tax Act, the Department shall pay into | ||||||
| 6 | the Tax Compliance and Administration Fund, to be used, | ||||||
| 7 | subject to appropriation, to fund additional auditors and | ||||||
| 8 | compliance personnel at the Department of Revenue, an amount | ||||||
| 9 | equal to 1/12 of 5% of 80% of the cash receipts collected | ||||||
| 10 | during the preceding fiscal year by the Audit Bureau of the | ||||||
| 11 | Department under the Use Tax Act, the Service Use Tax Act, the | ||||||
| 12 | Service Occupation Tax Act, the Retailers' Occupation Tax Act, | ||||||
| 13 | and associated local occupation and use taxes administered by | ||||||
| 14 | the Department. | ||||||
| 15 | Subject to payments of amounts into the Build Illinois | ||||||
| 16 | Fund, the McCormick Place Expansion Project Fund, the Illinois | ||||||
| 17 | Tax Increment Fund, and the Tax Compliance and Administration | ||||||
| 18 | Fund as provided in this Section, beginning on July 1, 2018 the | ||||||
| 19 | Department shall pay each month into the Downstate Public | ||||||
| 20 | Transportation Fund the moneys required to be so paid under | ||||||
| 21 | Section 2-3 of the Downstate Public Transportation Act. | ||||||
| 22 | Subject to successful execution and delivery of a | ||||||
| 23 | public-private agreement between the public agency and private | ||||||
| 24 | entity and completion of the civic build, beginning on July 1, | ||||||
| 25 | 2023, of the remainder of the moneys received by the | ||||||
| 26 | Department under the Use Tax Act, the Service Use Tax Act, the | ||||||
| |||||||
| |||||||
| 1 | Service Occupation Tax Act, and this Act, the Department shall | ||||||
| 2 | deposit the following specified deposits in the aggregate from | ||||||
| 3 | collections under the Use Tax Act, the Service Use Tax Act, the | ||||||
| 4 | Service Occupation Tax Act, and the Retailers' Occupation Tax | ||||||
| 5 | Act, as required under Section 8.25g of the State Finance Act | ||||||
| 6 | for distribution consistent with the Public-Private | ||||||
| 7 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
| 8 | The moneys received by the Department pursuant to this Act and | ||||||
| 9 | required to be deposited into the Civic and Transit | ||||||
| 10 | Infrastructure Fund are subject to the pledge, claim, and | ||||||
| 11 | charge set forth in Section 25-55 of the Public-Private | ||||||
| 12 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
| 13 | As used in this paragraph, "civic build", "private entity", | ||||||
| 14 | "public-private agreement", and "public agency" have the | ||||||
| 15 | meanings provided in Section 25-10 of the Public-Private | ||||||
| 16 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
| 17 | Fiscal Year............................Total Deposit | ||||||
| 18 | 2024....................................$200,000,000 | ||||||
| 19 | 2025....................................$206,000,000 | ||||||
| 20 | 2026....................................$212,200,000 | ||||||
| 21 | 2027....................................$218,500,000 | ||||||
| 22 | 2028....................................$225,100,000 | ||||||
| 23 | 2029....................................$288,700,000 | ||||||
| 24 | 2030....................................$298,900,000 | ||||||
| 25 | 2031....................................$309,300,000 | ||||||
| 26 | 2032....................................$320,100,000 | ||||||
| |||||||
| |||||||
| 1 | 2033....................................$331,200,000 | ||||||
| 2 | 2034....................................$341,200,000 | ||||||
| 3 | 2035....................................$351,400,000 | ||||||
| 4 | 2036....................................$361,900,000 | ||||||
| 5 | 2037....................................$372,800,000 | ||||||
| 6 | 2038....................................$384,000,000 | ||||||
| 7 | 2039....................................$395,500,000 | ||||||
| 8 | 2040....................................$407,400,000 | ||||||
| 9 | 2041....................................$419,600,000 | ||||||
| 10 | 2042....................................$432,200,000 | ||||||
| 11 | 2043....................................$445,100,000 | ||||||
| 12 | Beginning July 1, 2021 and until July 1, 2022, subject to | ||||||
| 13 | the payment of amounts into the State and Local Sales Tax | ||||||
| 14 | Reform Fund, the Build Illinois Fund, the McCormick Place | ||||||
| 15 | Expansion Project Fund, the Energy Infrastructure Fund, and | ||||||
| 16 | the Tax Compliance and Administration Fund as provided in this | ||||||
| 17 | Section, the Department shall pay each month into the Road | ||||||
| 18 | Fund the amount estimated to represent 16% of the net revenue | ||||||
| 19 | realized from the taxes imposed on motor fuel and gasohol. | ||||||
| 20 | Beginning July 1, 2022 and until July 1, 2023, subject to the | ||||||
| 21 | payment of amounts into the State and Local Sales Tax Reform | ||||||
| 22 | Fund, the Build Illinois Fund, the McCormick Place Expansion | ||||||
| 23 | Project Fund, the Illinois Tax Increment Fund, and the Tax | ||||||
| 24 | Compliance and Administration Fund as provided in this | ||||||
| 25 | Section, the Department shall pay each month into the Road | ||||||
| 26 | Fund the amount estimated to represent 32% of the net revenue | ||||||
| |||||||
| |||||||
| 1 | realized from the taxes imposed on motor fuel and gasohol. | ||||||
| 2 | Beginning July 1, 2023 and until July 1, 2024, subject to the | ||||||
| 3 | payment of amounts into the State and Local Sales Tax Reform | ||||||
| 4 | Fund, the Build Illinois Fund, the McCormick Place Expansion | ||||||
| 5 | Project Fund, the Illinois Tax Increment Fund, and the Tax | ||||||
| 6 | Compliance and Administration Fund as provided in this | ||||||
| 7 | Section, the Department shall pay each month into the Road | ||||||
| 8 | Fund the amount estimated to represent 48% of the net revenue | ||||||
| 9 | realized from the taxes imposed on motor fuel and gasohol. | ||||||
| 10 | Beginning July 1, 2024 and until July 1, 2025, subject to the | ||||||
| 11 | payment of amounts into the State and Local Sales Tax Reform | ||||||
| 12 | Fund, the Build Illinois Fund, the McCormick Place Expansion | ||||||
| 13 | Project Fund, the Illinois Tax Increment Fund, and the Tax | ||||||
| 14 | Compliance and Administration Fund as provided in this | ||||||
| 15 | Section, the Department shall pay each month into the Road | ||||||
| 16 | Fund the amount estimated to represent 64% of the net revenue | ||||||
| 17 | realized from the taxes imposed on motor fuel and gasohol. | ||||||
| 18 | Beginning on July 1, 2025, subject to the payment of amounts | ||||||
| 19 | into the State and Local Sales Tax Reform Fund, the Build | ||||||
| 20 | Illinois Fund, the McCormick Place Expansion Project Fund, the | ||||||
| 21 | Illinois Tax Increment Fund, and the Tax Compliance and | ||||||
| 22 | Administration Fund as provided in this Section, the | ||||||
| 23 | Department shall pay each month into the Road Fund the amount | ||||||
| 24 | estimated to represent 80% of the net revenue realized from | ||||||
| 25 | the taxes imposed on motor fuel and gasohol. As used in this | ||||||
| 26 | paragraph "motor fuel" has the meaning given to that term in | ||||||
| |||||||
| |||||||
| 1 | Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the | ||||||
| 2 | meaning given to that term in Section 3-40 of the Use Tax Act. | ||||||
| 3 | Of the remainder of the moneys received by the Department | ||||||
| 4 | pursuant to this Act, 75% thereof shall be paid into the | ||||||
| 5 | General Revenue Fund of the State Treasury and 25% shall be | ||||||
| 6 | reserved in a special account and used only for the transfer to | ||||||
| 7 | the Common School Fund as part of the monthly transfer from the | ||||||
| 8 | General Revenue Fund in accordance with Section 8a of the | ||||||
| 9 | State Finance Act. | ||||||
| 10 | As soon as possible after the first day of each month, upon | ||||||
| 11 | certification of the Department of Revenue, the Comptroller | ||||||
| 12 | shall order transferred and the Treasurer shall transfer from | ||||||
| 13 | the General Revenue Fund to the Motor Fuel Tax Fund an amount | ||||||
| 14 | equal to 1.7% of 80% of the net revenue realized under this Act | ||||||
| 15 | for the second preceding month. Beginning April 1, 2000, this | ||||||
| 16 | transfer is no longer required and shall not be made. | ||||||
| 17 | Net revenue realized for a month shall be the revenue | ||||||
| 18 | collected by the State pursuant to this Act, less the amount | ||||||
| 19 | paid out during that month as refunds to taxpayers for | ||||||
| 20 | overpayment of liability. | ||||||
| 21 | (Source: P.A. 102-700, eff. 4-19-22; 103-363, eff. 7-28-23.)
| ||||||
| 22 | Section 75-15. The Service Occupation Tax Act is amended | ||||||
| 23 | by changing Sections 2, 3, 3-5, and 3-10 and by adding Section | ||||||
| 24 | 1.05 as follows:
| ||||||
| |||||||
| |||||||
| 1 | (35 ILCS 115/1.05 new) | ||||||
| 2 | Sec. 1.05. Legislative intent; leases. It is the intent of | ||||||
| 3 | the General Assembly in enacting this amendatory Act of the | ||||||
| 4 | 103rd General Assembly to apply the tax imposed under this | ||||||
| 5 | Act, except as otherwise provided in this Act, to persons | ||||||
| 6 | engaged in the business of making sales of service (referred | ||||||
| 7 | to as "servicemen") on all tangible personal property, other | ||||||
| 8 | than motor vehicles, watercraft, aircraft, and semitrailers, | ||||||
| 9 | as defined in Section 1-187 of the Illinois Vehicle Code, that | ||||||
| 10 | are required to be registered with an agency of this State, | ||||||
| 11 | transferred by lease, as an incident of a sale of service, for | ||||||
| 12 | leases in effect, entered into, or renewed on or after January | ||||||
| 13 | 1, 2025.
| ||||||
| 14 | (35 ILCS 115/2) (from Ch. 120, par. 439.102) | ||||||
| 15 | Sec. 2. In this Act: | ||||||
| 16 | "Transfer" means any transfer of the title to property or | ||||||
| 17 | of the ownership of property whether or not the transferor | ||||||
| 18 | retains title as security for the payment of amounts due him | ||||||
| 19 | from the transferee. On and after January 1, 2025, "transfer" | ||||||
| 20 | also means any transfer of the possession or control of, the | ||||||
| 21 | right to possess or control, or a license to use, but not title | ||||||
| 22 | to, tangible personal property. | ||||||
| 23 | "Lease" means a transfer of the possession or control of, | ||||||
| 24 | the right to possess or control, or a license to use, but not | ||||||
| 25 | title to, tangible personal property for a fixed or | ||||||
| |||||||
| |||||||
| 1 | indeterminate term for consideration, regardless of the name | ||||||
| 2 | by which the transaction is called. "Lease" does not include a | ||||||
| 3 | lease entered into merely as a security agreement that does | ||||||
| 4 | not involve a transfer of possession or control from the | ||||||
| 5 | lessor to the lessee. | ||||||
| 6 | On and after January 1, 2025, the term "sale", when used in | ||||||
| 7 | this Act with respect to tangible personal property, includes | ||||||
| 8 | a lease. | ||||||
| 9 | "Cost Price" means the consideration paid by the | ||||||
| 10 | serviceman for a purchase, including, on and after January 1, | ||||||
| 11 | 2025, a lease, valued in money, whether paid in money or | ||||||
| 12 | otherwise, including cash, credits and services, and shall be | ||||||
| 13 | determined without any deduction on account of the supplier's | ||||||
| 14 | cost of the property sold or on account of any other expense | ||||||
| 15 | incurred by the supplier. When a serviceman contracts out part | ||||||
| 16 | or all of the services required in his sale of service, it | ||||||
| 17 | shall be presumed that the cost price to the serviceman of the | ||||||
| 18 | property transferred to him by his or her subcontractor is | ||||||
| 19 | equal to 50% of the subcontractor's charges to the serviceman | ||||||
| 20 | in the absence of proof of the consideration paid by the | ||||||
| 21 | subcontractor for the purchase of such property. | ||||||
| 22 | "Department" means the Department of Revenue. | ||||||
| 23 | "Person" means any natural individual, firm, partnership, | ||||||
| 24 | association, joint stock company, joint venture, public or | ||||||
| 25 | private corporation, limited liability company, and any | ||||||
| 26 | receiver, executor, trustee, guardian or other representative | ||||||
| |||||||
| |||||||
| 1 | appointed by order of any court. | ||||||
| 2 | "Sale of Service" means any transaction except: | ||||||
| 3 | (a) A retail sale of tangible personal property taxable | ||||||
| 4 | under the Retailers' Occupation Tax Act or under the Use Tax | ||||||
| 5 | Act. | ||||||
| 6 | (b) A sale of tangible personal property for the purpose | ||||||
| 7 | of resale made in compliance with Section 2c of the Retailers' | ||||||
| 8 | Occupation Tax Act. | ||||||
| 9 | (c) Except as hereinafter provided, a sale or transfer of | ||||||
| 10 | tangible personal property as an incident to the rendering of | ||||||
| 11 | service for or by any governmental body or for or by any | ||||||
| 12 | corporation, society, association, foundation or institution | ||||||
| 13 | organized and operated exclusively for charitable, religious | ||||||
| 14 | or educational purposes or any not-for-profit corporation, | ||||||
| 15 | society, association, foundation, institution or organization | ||||||
| 16 | which has no compensated officers or employees and which is | ||||||
| 17 | organized and operated primarily for the recreation of persons | ||||||
| 18 | 55 years of age or older. A limited liability company may | ||||||
| 19 | qualify for the exemption under this paragraph only if the | ||||||
| 20 | limited liability company is organized and operated | ||||||
| 21 | exclusively for educational purposes. | ||||||
| 22 | (d) (Blank). | ||||||
| 23 | (d-1) A sale or transfer of tangible personal property as | ||||||
| 24 | an incident to the rendering of service for owners or , | ||||||
| 25 | lessors, lessees, or shippers of tangible personal property | ||||||
| 26 | which is utilized by interstate carriers for hire for use as | ||||||
| |||||||
| |||||||
| 1 | rolling stock moving in interstate commerce, and equipment | ||||||
| 2 | operated by a telecommunications provider, licensed as a | ||||||
| 3 | common carrier by the Federal Communications Commission, which | ||||||
| 4 | is permanently installed in or affixed to aircraft moving in | ||||||
| 5 | interstate commerce. | ||||||
| 6 | (d-1.1) On and after July 1, 2003 and through June 30, | ||||||
| 7 | 2004, a sale or transfer of a motor vehicle of the second | ||||||
| 8 | division with a gross vehicle weight in excess of 8,000 pounds | ||||||
| 9 | as an incident to the rendering of service if that motor | ||||||
| 10 | vehicle is subject to the commercial distribution fee imposed | ||||||
| 11 | under Section 3-815.1 of the Illinois Vehicle Code. Beginning | ||||||
| 12 | on July 1, 2004 and through June 30, 2005, the use in this | ||||||
| 13 | State of motor vehicles of the second division: (i) with a | ||||||
| 14 | gross vehicle weight rating in excess of 8,000 pounds; (ii) | ||||||
| 15 | that are subject to the commercial distribution fee imposed | ||||||
| 16 | under Section 3-815.1 of the Illinois Vehicle Code; and (iii) | ||||||
| 17 | that are primarily used for commercial purposes. Through June | ||||||
| 18 | 30, 2005, this exemption applies to repair and replacement | ||||||
| 19 | parts added after the initial purchase of such a motor vehicle | ||||||
| 20 | if that motor vehicle is used in a manner that would qualify | ||||||
| 21 | for the rolling stock exemption otherwise provided for in this | ||||||
| 22 | Act. For purposes of this paragraph, "used for commercial | ||||||
| 23 | purposes" means the transportation of persons or property in | ||||||
| 24 | furtherance of any commercial or industrial enterprise whether | ||||||
| 25 | for-hire or not. | ||||||
| 26 | (d-2) The repairing, reconditioning or remodeling, for a | ||||||
| |||||||
| |||||||
| 1 | common carrier by rail, of tangible personal property which | ||||||
| 2 | belongs to such carrier for hire, and as to which such carrier | ||||||
| 3 | receives the physical possession of the repaired, | ||||||
| 4 | reconditioned or remodeled item of tangible personal property | ||||||
| 5 | in Illinois, and which such carrier transports, or shares with | ||||||
| 6 | another common carrier in the transportation of such property, | ||||||
| 7 | out of Illinois on a standard uniform bill of lading showing | ||||||
| 8 | the person who repaired, reconditioned or remodeled the | ||||||
| 9 | property as the shipper or consignor of such property to a | ||||||
| 10 | destination outside Illinois, for use outside Illinois. | ||||||
| 11 | (d-3) A sale or transfer of tangible personal property | ||||||
| 12 | which is produced by the seller thereof on special order in | ||||||
| 13 | such a way as to have made the applicable tax the Service | ||||||
| 14 | Occupation Tax or the Service Use Tax, rather than the | ||||||
| 15 | Retailers' Occupation Tax or the Use Tax, for an interstate | ||||||
| 16 | carrier by rail which receives the physical possession of such | ||||||
| 17 | property in Illinois, and which transports such property, or | ||||||
| 18 | shares with another common carrier in the transportation of | ||||||
| 19 | such property, out of Illinois on a standard uniform bill of | ||||||
| 20 | lading showing the seller of the property as the shipper or | ||||||
| 21 | consignor of such property to a destination outside Illinois, | ||||||
| 22 | for use outside Illinois. | ||||||
| 23 | (d-4) Until January 1, 1997, a sale, by a registered | ||||||
| 24 | serviceman paying tax under this Act to the Department, of | ||||||
| 25 | special order printed materials delivered outside Illinois and | ||||||
| 26 | which are not returned to this State, if delivery is made by | ||||||
| |||||||
| |||||||
| 1 | the seller or agent of the seller, including an agent who | ||||||
| 2 | causes the product to be delivered outside Illinois by a | ||||||
| 3 | common carrier or the U.S. postal service. | ||||||
| 4 | (e) A sale or transfer of machinery and equipment used | ||||||
| 5 | primarily in the process of the manufacturing or assembling, | ||||||
| 6 | either in an existing, an expanded or a new manufacturing | ||||||
| 7 | facility, of tangible personal property for wholesale or | ||||||
| 8 | retail sale or lease, whether such sale or lease is made | ||||||
| 9 | directly by the manufacturer or by some other person, whether | ||||||
| 10 | the materials used in the process are owned by the | ||||||
| 11 | manufacturer or some other person, or whether such sale or | ||||||
| 12 | lease is made apart from or as an incident to the seller's | ||||||
| 13 | engaging in a service occupation and the applicable tax is a | ||||||
| 14 | Service Occupation Tax or Service Use Tax, rather than | ||||||
| 15 | Retailers' Occupation Tax or Use Tax. The exemption provided | ||||||
| 16 | by this paragraph (e) includes production related tangible | ||||||
| 17 | personal property, as defined in Section 3-50 of the Use Tax | ||||||
| 18 | Act, purchased on or after July 1, 2019. The exemption | ||||||
| 19 | provided by this paragraph (e) does not include machinery and | ||||||
| 20 | equipment used in (i) the generation of electricity for | ||||||
| 21 | wholesale or retail sale; (ii) the generation or treatment of | ||||||
| 22 | natural or artificial gas for wholesale or retail sale that is | ||||||
| 23 | delivered to customers through pipes, pipelines, or mains; or | ||||||
| 24 | (iii) the treatment of water for wholesale or retail sale that | ||||||
| 25 | is delivered to customers through pipes, pipelines, or mains. | ||||||
| 26 | The provisions of Public Act 98-583 are declaratory of | ||||||
| |||||||
| |||||||
| 1 | existing law as to the meaning and scope of this exemption. The | ||||||
| 2 | exemption under this subsection (e) is exempt from the | ||||||
| 3 | provisions of Section 3-75. | ||||||
| 4 | (f) Until July 1, 2003, the sale or transfer of | ||||||
| 5 | distillation machinery and equipment, sold as a unit or kit | ||||||
| 6 | and assembled or installed by the retailer, which machinery | ||||||
| 7 | and equipment is certified by the user to be used only for the | ||||||
| 8 | production of ethyl alcohol that will be used for consumption | ||||||
| 9 | as motor fuel or as a component of motor fuel for the personal | ||||||
| 10 | use of such user and not subject to sale or resale. | ||||||
| 11 | (g) At the election of any serviceman not required to be | ||||||
| 12 | otherwise registered as a retailer under Section 2a of the | ||||||
| 13 | Retailers' Occupation Tax Act, made for each fiscal year sales | ||||||
| 14 | of service in which the aggregate annual cost price of | ||||||
| 15 | tangible personal property transferred as an incident to the | ||||||
| 16 | sales of service is less than 35% (75% in the case of | ||||||
| 17 | servicemen transferring prescription drugs or servicemen | ||||||
| 18 | engaged in graphic arts production) of the aggregate annual | ||||||
| 19 | total gross receipts from all sales of service. The purchase | ||||||
| 20 | of such tangible personal property by the serviceman shall be | ||||||
| 21 | subject to tax under the Retailers' Occupation Tax Act and the | ||||||
| 22 | Use Tax Act. However, if a primary serviceman who has made the | ||||||
| 23 | election described in this paragraph subcontracts service work | ||||||
| 24 | to a secondary serviceman who has also made the election | ||||||
| 25 | described in this paragraph, the primary serviceman does not | ||||||
| 26 | incur a Use Tax liability if the secondary serviceman (i) has | ||||||
| |||||||
| |||||||
| 1 | paid or will pay Use Tax on his or her cost price of any | ||||||
| 2 | tangible personal property transferred to the primary | ||||||
| 3 | serviceman and (ii) certifies that fact in writing to the | ||||||
| 4 | primary serviceman. | ||||||
| 5 | Tangible personal property transferred incident to the | ||||||
| 6 | completion of a maintenance agreement is exempt from the tax | ||||||
| 7 | imposed pursuant to this Act. | ||||||
| 8 | Exemption (e) also includes machinery and equipment used | ||||||
| 9 | in the general maintenance or repair of such exempt machinery | ||||||
| 10 | and equipment or for in-house manufacture of exempt machinery | ||||||
| 11 | and equipment. On and after July 1, 2017, exemption (e) also | ||||||
| 12 | includes graphic arts machinery and equipment, as defined in | ||||||
| 13 | paragraph (5) of Section 3-5. The machinery and equipment | ||||||
| 14 | exemption does not include machinery and equipment used in (i) | ||||||
| 15 | the generation of electricity for wholesale or retail sale; | ||||||
| 16 | (ii) the generation or treatment of natural or artificial gas | ||||||
| 17 | for wholesale or retail sale that is delivered to customers | ||||||
| 18 | through pipes, pipelines, or mains; or (iii) the treatment of | ||||||
| 19 | water for wholesale or retail sale that is delivered to | ||||||
| 20 | customers through pipes, pipelines, or mains. The provisions | ||||||
| 21 | of Public Act 98-583 are declaratory of existing law as to the | ||||||
| 22 | meaning and scope of this exemption. For the purposes of | ||||||
| 23 | exemption (e), each of these terms shall have the following | ||||||
| 24 | meanings: (1) "manufacturing process" shall mean the | ||||||
| 25 | production of any article of tangible personal property, | ||||||
| 26 | whether such article is a finished product or an article for | ||||||
| |||||||
| |||||||
| 1 | use in the process of manufacturing or assembling a different | ||||||
| 2 | article of tangible personal property, by procedures commonly | ||||||
| 3 | regarded as manufacturing, processing, fabricating, or | ||||||
| 4 | refining which changes some existing material or materials | ||||||
| 5 | into a material with a different form, use or name. In relation | ||||||
| 6 | to a recognized integrated business composed of a series of | ||||||
| 7 | operations which collectively constitute manufacturing, or | ||||||
| 8 | individually constitute manufacturing operations, the | ||||||
| 9 | manufacturing process shall be deemed to commence with the | ||||||
| 10 | first operation or stage of production in the series, and | ||||||
| 11 | shall not be deemed to end until the completion of the final | ||||||
| 12 | product in the last operation or stage of production in the | ||||||
| 13 | series; and further for purposes of exemption (e), | ||||||
| 14 | photoprocessing is deemed to be a manufacturing process of | ||||||
| 15 | tangible personal property for wholesale or retail sale; (2) | ||||||
| 16 | "assembling process" shall mean the production of any article | ||||||
| 17 | of tangible personal property, whether such article is a | ||||||
| 18 | finished product or an article for use in the process of | ||||||
| 19 | manufacturing or assembling a different article of tangible | ||||||
| 20 | personal property, by the combination of existing materials in | ||||||
| 21 | a manner commonly regarded as assembling which results in a | ||||||
| 22 | material of a different form, use or name; (3) "machinery" | ||||||
| 23 | shall mean major mechanical machines or major components of | ||||||
| 24 | such machines contributing to a manufacturing or assembling | ||||||
| 25 | process; and (4) "equipment" shall include any independent | ||||||
| 26 | device or tool separate from any machinery but essential to an | ||||||
| |||||||
| |||||||
| 1 | integrated manufacturing or assembly process; including | ||||||
| 2 | computers used primarily in a manufacturer's computer assisted | ||||||
| 3 | design, computer assisted manufacturing (CAD/CAM) system; or | ||||||
| 4 | any subunit or assembly comprising a component of any | ||||||
| 5 | machinery or auxiliary, adjunct or attachment parts of | ||||||
| 6 | machinery, such as tools, dies, jigs, fixtures, patterns and | ||||||
| 7 | molds; or any parts which require periodic replacement in the | ||||||
| 8 | course of normal operation; but shall not include hand tools. | ||||||
| 9 | Equipment includes chemicals or chemicals acting as catalysts | ||||||
| 10 | but only if the chemicals or chemicals acting as catalysts | ||||||
| 11 | effect a direct and immediate change upon a product being | ||||||
| 12 | manufactured or assembled for wholesale or retail sale or | ||||||
| 13 | lease. The purchaser of such machinery and equipment who has | ||||||
| 14 | an active resale registration number shall furnish such number | ||||||
| 15 | to the seller at the time of purchase. The purchaser of such | ||||||
| 16 | machinery and equipment and tools without an active resale | ||||||
| 17 | registration number shall furnish to the seller a certificate | ||||||
| 18 | of exemption stating facts establishing the exemption, which | ||||||
| 19 | certificate shall be available to the Department for | ||||||
| 20 | inspection or audit. | ||||||
| 21 | Except as provided in Section 2d of this Act, the rolling | ||||||
| 22 | stock exemption applies to rolling stock used by an interstate | ||||||
| 23 | carrier for hire, even just between points in Illinois, if | ||||||
| 24 | such rolling stock transports, for hire, persons whose | ||||||
| 25 | journeys or property whose shipments originate or terminate | ||||||
| 26 | outside Illinois. | ||||||
| |||||||
| |||||||
| 1 | Any informal rulings, opinions or letters issued by the | ||||||
| 2 | Department in response to an inquiry or request for any | ||||||
| 3 | opinion from any person regarding the coverage and | ||||||
| 4 | applicability of exemption (e) to specific devices shall be | ||||||
| 5 | published, maintained as a public record, and made available | ||||||
| 6 | for public inspection and copying. If the informal ruling, | ||||||
| 7 | opinion or letter contains trade secrets or other confidential | ||||||
| 8 | information, where possible the Department shall delete such | ||||||
| 9 | information prior to publication. Whenever such informal | ||||||
| 10 | rulings, opinions, or letters contain any policy of general | ||||||
| 11 | applicability, the Department shall formulate and adopt such | ||||||
| 12 | policy as a rule in accordance with the provisions of the | ||||||
| 13 | Illinois Administrative Procedure Act. | ||||||
| 14 | On and after July 1, 1987, no entity otherwise eligible | ||||||
| 15 | under exemption (c) of this Section shall make tax-free | ||||||
| 16 | purchases unless it has an active exemption identification | ||||||
| 17 | number issued by the Department. | ||||||
| 18 | "Serviceman" means any person who is engaged in the | ||||||
| 19 | occupation of making sales of service. | ||||||
| 20 | "Sale at Retail" means "sale at retail" as defined in the | ||||||
| 21 | Retailers' Occupation Tax Act, which, on and after January 1, | ||||||
| 22 | 2025, is defined to include leases. | ||||||
| 23 | "Supplier" means any person who makes sales of tangible | ||||||
| 24 | personal property to servicemen for the purpose of resale as | ||||||
| 25 | an incident to a sale of service. | ||||||
| 26 | (Source: P.A. 100-22, eff. 7-6-17; 100-321, eff. 8-24-17; | ||||||
| |||||||
| |||||||
| 1 | 100-863, eff. 8-14-18; 101-9, eff. 6-5-19; 101-604, eff. | ||||||
| 2 | 12-13-19.)
| ||||||
| 3 | (35 ILCS 115/3) (from Ch. 120, par. 439.103) | ||||||
| 4 | Sec. 3. Tax imposed. A tax is imposed upon all persons | ||||||
| 5 | engaged in the business of making sales of service (referred | ||||||
| 6 | to as "servicemen") on all tangible personal property | ||||||
| 7 | transferred, including, on and after January 1, 2025, | ||||||
| 8 | transferred by lease, as an incident of a sale of service, | ||||||
| 9 | including computer software, and including photographs, | ||||||
| 10 | negatives, and positives that are the product of | ||||||
| 11 | photoprocessing, but not including products of photoprocessing | ||||||
| 12 | produced for use in motion pictures for public commercial | ||||||
| 13 | exhibition. Beginning January 1, 2001, prepaid telephone | ||||||
| 14 | calling arrangements shall be considered tangible personal | ||||||
| 15 | property subject to the tax imposed under this Act regardless | ||||||
| 16 | of the form in which those arrangements may be embodied, | ||||||
| 17 | transmitted, or fixed by any method now known or hereafter | ||||||
| 18 | developed. Sales of (1) electricity delivered to customers by | ||||||
| 19 | wire; (2) natural or artificial gas that is delivered to | ||||||
| 20 | customers through pipes, pipelines, or mains; and (3) water | ||||||
| 21 | that is delivered to customers through pipes, pipelines, or | ||||||
| 22 | mains are not subject to tax under this Act. The provisions of | ||||||
| 23 | this amendatory Act of the 98th General Assembly are | ||||||
| 24 | declaratory of existing law as to the meaning and scope of this | ||||||
| 25 | Act. | ||||||
| |||||||
| |||||||
| 1 | The imposition of the tax under this Act on tangible | ||||||
| 2 | personal property transferred by lease by persons engaged in | ||||||
| 3 | the business of making sales of service applies to leases in | ||||||
| 4 | effect, entered into, or renewed on or after January 1, 2025. | ||||||
| 5 | In the case of leases, except as otherwise provided in this | ||||||
| 6 | Act, the serviceman who is a lessor must remit for each tax | ||||||
| 7 | return period only the tax applicable to that part of the | ||||||
| 8 | selling price actually received during such tax return period. | ||||||
| 9 | (Source: P.A. 98-583, eff. 1-1-14.)
| ||||||
| 10 | (35 ILCS 115/3-5) | ||||||
| 11 | Sec. 3-5. Exemptions. The following tangible personal | ||||||
| 12 | property is exempt from the tax imposed by this Act: | ||||||
| 13 | (1) Personal property sold by a corporation, society, | ||||||
| 14 | association, foundation, institution, or organization, other | ||||||
| 15 | than a limited liability company, that is organized and | ||||||
| 16 | operated as a not-for-profit service enterprise for the | ||||||
| 17 | benefit of persons 65 years of age or older if the personal | ||||||
| 18 | property was not purchased by the enterprise for the purpose | ||||||
| 19 | of resale by the enterprise. | ||||||
| 20 | (2) Personal property purchased by a not-for-profit | ||||||
| 21 | Illinois county fair association for use in conducting, | ||||||
| 22 | operating, or promoting the county fair. | ||||||
| 23 | (3) Personal property purchased by any not-for-profit arts | ||||||
| 24 | or cultural organization that establishes, by proof required | ||||||
| 25 | by the Department by rule, that it has received an exemption | ||||||
| |||||||
| |||||||
| 1 | under Section 501(c)(3) of the Internal Revenue Code and that | ||||||
| 2 | is organized and operated primarily for the presentation or | ||||||
| 3 | support of arts or cultural programming, activities, or | ||||||
| 4 | services. These organizations include, but are not limited to, | ||||||
| 5 | music and dramatic arts organizations such as symphony | ||||||
| 6 | orchestras and theatrical groups, arts and cultural service | ||||||
| 7 | organizations, local arts councils, visual arts organizations, | ||||||
| 8 | and media arts organizations. On and after July 1, 2001 (the | ||||||
| 9 | effective date of Public Act 92-35), however, an entity | ||||||
| 10 | otherwise eligible for this exemption shall not make tax-free | ||||||
| 11 | purchases unless it has an active identification number issued | ||||||
| 12 | by the Department. | ||||||
| 13 | (4) Legal tender, currency, medallions, or gold or silver | ||||||
| 14 | coinage issued by the State of Illinois, the government of the | ||||||
| 15 | United States of America, or the government of any foreign | ||||||
| 16 | country, and bullion. | ||||||
| 17 | (5) Until July 1, 2003 and beginning again on September 1, | ||||||
| 18 | 2004 through August 30, 2014, graphic arts machinery and | ||||||
| 19 | equipment, including repair and replacement parts, both new | ||||||
| 20 | and used, and including that manufactured on special order or | ||||||
| 21 | purchased for lease, certified by the purchaser to be used | ||||||
| 22 | primarily for graphic arts production. Equipment includes | ||||||
| 23 | chemicals or chemicals acting as catalysts but only if the | ||||||
| 24 | chemicals or chemicals acting as catalysts effect a direct and | ||||||
| 25 | immediate change upon a graphic arts product. Beginning on | ||||||
| 26 | July 1, 2017, graphic arts machinery and equipment is included | ||||||
| |||||||
| |||||||
| 1 | in the manufacturing and assembling machinery and equipment | ||||||
| 2 | exemption under Section 2 of this Act. | ||||||
| 3 | (6) Personal property sold by a teacher-sponsored student | ||||||
| 4 | organization affiliated with an elementary or secondary school | ||||||
| 5 | located in Illinois. | ||||||
| 6 | (7) Farm machinery and equipment, both new and used, | ||||||
| 7 | including that manufactured on special order, certified by the | ||||||
| 8 | purchaser to be used primarily for production agriculture or | ||||||
| 9 | State or federal agricultural programs, including individual | ||||||
| 10 | replacement parts for the machinery and equipment, including | ||||||
| 11 | machinery and equipment purchased for lease, and including | ||||||
| 12 | implements of husbandry defined in Section 1-130 of the | ||||||
| 13 | Illinois Vehicle Code, farm machinery and agricultural | ||||||
| 14 | chemical and fertilizer spreaders, and nurse wagons required | ||||||
| 15 | to be registered under Section 3-809 of the Illinois Vehicle | ||||||
| 16 | Code, but excluding other motor vehicles required to be | ||||||
| 17 | registered under the Illinois Vehicle Code. Horticultural | ||||||
| 18 | polyhouses or hoop houses used for propagating, growing, or | ||||||
| 19 | overwintering plants shall be considered farm machinery and | ||||||
| 20 | equipment under this item (7). Agricultural chemical tender | ||||||
| 21 | tanks and dry boxes shall include units sold separately from a | ||||||
| 22 | motor vehicle required to be licensed and units sold mounted | ||||||
| 23 | on a motor vehicle required to be licensed if the selling price | ||||||
| 24 | of the tender is separately stated. | ||||||
| 25 | Farm machinery and equipment shall include precision | ||||||
| 26 | farming equipment that is installed or purchased to be | ||||||
| |||||||
| |||||||
| 1 | installed on farm machinery and equipment, including, but not | ||||||
| 2 | limited to, tractors, harvesters, sprayers, planters, seeders, | ||||||
| 3 | or spreaders. Precision farming equipment includes, but is not | ||||||
| 4 | limited to, soil testing sensors, computers, monitors, | ||||||
| 5 | software, global positioning and mapping systems, and other | ||||||
| 6 | such equipment. | ||||||
| 7 | Farm machinery and equipment also includes computers, | ||||||
| 8 | sensors, software, and related equipment used primarily in the | ||||||
| 9 | computer-assisted operation of production agriculture | ||||||
| 10 | facilities, equipment, and activities such as, but not limited | ||||||
| 11 | to, the collection, monitoring, and correlation of animal and | ||||||
| 12 | crop data for the purpose of formulating animal diets and | ||||||
| 13 | agricultural chemicals. | ||||||
| 14 | Beginning on January 1, 2024, farm machinery and equipment | ||||||
| 15 | also includes electrical power generation equipment used | ||||||
| 16 | primarily for production agriculture. | ||||||
| 17 | This item (7) is exempt from the provisions of Section | ||||||
| 18 | 3-55. | ||||||
| 19 | (8) Until June 30, 2013, fuel and petroleum products sold | ||||||
| 20 | to or used by an air common carrier, certified by the carrier | ||||||
| 21 | to be used for consumption, shipment, or storage in the | ||||||
| 22 | conduct of its business as an air common carrier, for a flight | ||||||
| 23 | destined for or returning from a location or locations outside | ||||||
| 24 | the United States without regard to previous or subsequent | ||||||
| 25 | domestic stopovers. | ||||||
| 26 | Beginning July 1, 2013, fuel and petroleum products sold | ||||||
| |||||||
| |||||||
| 1 | to or used by an air carrier, certified by the carrier to be | ||||||
| 2 | used for consumption, shipment, or storage in the conduct of | ||||||
| 3 | its business as an air common carrier, for a flight that (i) is | ||||||
| 4 | engaged in foreign trade or is engaged in trade between the | ||||||
| 5 | United States and any of its possessions and (ii) transports | ||||||
| 6 | at least one individual or package for hire from the city of | ||||||
| 7 | origination to the city of final destination on the same | ||||||
| 8 | aircraft, without regard to a change in the flight number of | ||||||
| 9 | that aircraft. | ||||||
| 10 | (9) Proceeds of mandatory service charges separately | ||||||
| 11 | stated on customers' bills for the purchase and consumption of | ||||||
| 12 | food and beverages, to the extent that the proceeds of the | ||||||
| 13 | service charge are in fact turned over as tips or as a | ||||||
| 14 | substitute for tips to the employees who participate directly | ||||||
| 15 | in preparing, serving, hosting or cleaning up the food or | ||||||
| 16 | beverage function with respect to which the service charge is | ||||||
| 17 | imposed. | ||||||
| 18 | (10) Until July 1, 2003, oil field exploration, drilling, | ||||||
| 19 | and production equipment, including (i) rigs and parts of | ||||||
| 20 | rigs, rotary rigs, cable tool rigs, and workover rigs, (ii) | ||||||
| 21 | pipe and tubular goods, including casing and drill strings, | ||||||
| 22 | (iii) pumps and pump-jack units, (iv) storage tanks and flow | ||||||
| 23 | lines, (v) any individual replacement part for oil field | ||||||
| 24 | exploration, drilling, and production equipment, and (vi) | ||||||
| 25 | machinery and equipment purchased for lease; but excluding | ||||||
| 26 | motor vehicles required to be registered under the Illinois | ||||||
| |||||||
| |||||||
| 1 | Vehicle Code. | ||||||
| 2 | (11) Photoprocessing machinery and equipment, including | ||||||
| 3 | repair and replacement parts, both new and used, including | ||||||
| 4 | that manufactured on special order, certified by the purchaser | ||||||
| 5 | to be used primarily for photoprocessing, and including | ||||||
| 6 | photoprocessing machinery and equipment purchased for lease. | ||||||
| 7 | (12) Until July 1, 2028, coal and aggregate exploration, | ||||||
| 8 | mining, off-highway hauling, processing, maintenance, and | ||||||
| 9 | reclamation equipment, including replacement parts and | ||||||
| 10 | equipment, and including equipment purchased for lease, but | ||||||
| 11 | excluding motor vehicles required to be registered under the | ||||||
| 12 | Illinois Vehicle Code. The changes made to this Section by | ||||||
| 13 | Public Act 97-767 apply on and after July 1, 2003, but no claim | ||||||
| 14 | for credit or refund is allowed on or after August 16, 2013 | ||||||
| 15 | (the effective date of Public Act 98-456) for such taxes paid | ||||||
| 16 | during the period beginning July 1, 2003 and ending on August | ||||||
| 17 | 16, 2013 (the effective date of Public Act 98-456). | ||||||
| 18 | (13) Beginning January 1, 1992 and through June 30, 2016, | ||||||
| 19 | food for human consumption that is to be consumed off the | ||||||
| 20 | premises where it is sold (other than alcoholic beverages, | ||||||
| 21 | soft drinks and food that has been prepared for immediate | ||||||
| 22 | consumption) and prescription and non-prescription medicines, | ||||||
| 23 | drugs, medical appliances, and insulin, urine testing | ||||||
| 24 | materials, syringes, and needles used by diabetics, for human | ||||||
| 25 | use, when purchased for use by a person receiving medical | ||||||
| 26 | assistance under Article V of the Illinois Public Aid Code who | ||||||
| |||||||
| |||||||
| 1 | resides in a licensed long-term care facility, as defined in | ||||||
| 2 | the Nursing Home Care Act, or in a licensed facility as defined | ||||||
| 3 | in the ID/DD Community Care Act, the MC/DD Act, or the | ||||||
| 4 | Specialized Mental Health Rehabilitation Act of 2013. | ||||||
| 5 | (14) Semen used for artificial insemination of livestock | ||||||
| 6 | for direct agricultural production. | ||||||
| 7 | (15) Horses, or interests in horses, registered with and | ||||||
| 8 | meeting the requirements of any of the Arabian Horse Club | ||||||
| 9 | Registry of America, Appaloosa Horse Club, American Quarter | ||||||
| 10 | Horse Association, United States Trotting Association, or | ||||||
| 11 | Jockey Club, as appropriate, used for purposes of breeding or | ||||||
| 12 | racing for prizes. This item (15) is exempt from the | ||||||
| 13 | provisions of Section 3-55, and the exemption provided for | ||||||
| 14 | under this item (15) applies for all periods beginning May 30, | ||||||
| 15 | 1995, but no claim for credit or refund is allowed on or after | ||||||
| 16 | January 1, 2008 (the effective date of Public Act 95-88) for | ||||||
| 17 | such taxes paid during the period beginning May 30, 2000 and | ||||||
| 18 | ending on January 1, 2008 (the effective date of Public Act | ||||||
| 19 | 95-88). | ||||||
| 20 | (16) Computers and communications equipment utilized for | ||||||
| 21 | any hospital purpose and equipment used in the diagnosis, | ||||||
| 22 | analysis, or treatment of hospital patients sold to a lessor | ||||||
| 23 | who leases the equipment, under a lease of one year or longer | ||||||
| 24 | executed or in effect at the time of the purchase, to a | ||||||
| 25 | hospital that has been issued an active tax exemption | ||||||
| 26 | identification number by the Department under Section 1g of | ||||||
| |||||||
| |||||||
| 1 | the Retailers' Occupation Tax Act. | ||||||
| 2 | (17) Personal property sold to a lessor who leases the | ||||||
| 3 | property, under a lease of one year or longer executed or in | ||||||
| 4 | effect at the time of the purchase, to a governmental body that | ||||||
| 5 | has been issued an active tax exemption identification number | ||||||
| 6 | by the Department under Section 1g of the Retailers' | ||||||
| 7 | Occupation Tax Act. | ||||||
| 8 | (18) Beginning with taxable years ending on or after | ||||||
| 9 | December 31, 1995 and ending with taxable years ending on or | ||||||
| 10 | before December 31, 2004, personal property that is donated | ||||||
| 11 | for disaster relief to be used in a State or federally declared | ||||||
| 12 | disaster area in Illinois or bordering Illinois by a | ||||||
| 13 | manufacturer or retailer that is registered in this State to a | ||||||
| 14 | corporation, society, association, foundation, or institution | ||||||
| 15 | that has been issued a sales tax exemption identification | ||||||
| 16 | number by the Department that assists victims of the disaster | ||||||
| 17 | who reside within the declared disaster area. | ||||||
| 18 | (19) Beginning with taxable years ending on or after | ||||||
| 19 | December 31, 1995 and ending with taxable years ending on or | ||||||
| 20 | before December 31, 2004, personal property that is used in | ||||||
| 21 | the performance of infrastructure repairs in this State, | ||||||
| 22 | including, but not limited to, municipal roads and streets, | ||||||
| 23 | access roads, bridges, sidewalks, waste disposal systems, | ||||||
| 24 | water and sewer line extensions, water distribution and | ||||||
| 25 | purification facilities, storm water drainage and retention | ||||||
| 26 | facilities, and sewage treatment facilities, resulting from a | ||||||
| |||||||
| |||||||
| 1 | State or federally declared disaster in Illinois or bordering | ||||||
| 2 | Illinois when such repairs are initiated on facilities located | ||||||
| 3 | in the declared disaster area within 6 months after the | ||||||
| 4 | disaster. | ||||||
| 5 | (20) Beginning July 1, 1999, game or game birds sold at a | ||||||
| 6 | "game breeding and hunting preserve area" as that term is used | ||||||
| 7 | in the Wildlife Code. This paragraph is exempt from the | ||||||
| 8 | provisions of Section 3-55. | ||||||
| 9 | (21) A motor vehicle, as that term is defined in Section | ||||||
| 10 | 1-146 of the Illinois Vehicle Code, that is donated to a | ||||||
| 11 | corporation, limited liability company, society, association, | ||||||
| 12 | foundation, or institution that is determined by the | ||||||
| 13 | Department to be organized and operated exclusively for | ||||||
| 14 | educational purposes. For purposes of this exemption, "a | ||||||
| 15 | corporation, limited liability company, society, association, | ||||||
| 16 | foundation, or institution organized and operated exclusively | ||||||
| 17 | for educational purposes" means all tax-supported public | ||||||
| 18 | schools, private schools that offer systematic instruction in | ||||||
| 19 | useful branches of learning by methods common to public | ||||||
| 20 | schools and that compare favorably in their scope and | ||||||
| 21 | intensity with the course of study presented in tax-supported | ||||||
| 22 | schools, and vocational or technical schools or institutes | ||||||
| 23 | organized and operated exclusively to provide a course of | ||||||
| 24 | study of not less than 6 weeks duration and designed to prepare | ||||||
| 25 | individuals to follow a trade or to pursue a manual, | ||||||
| 26 | technical, mechanical, industrial, business, or commercial | ||||||
| |||||||
| |||||||
| 1 | occupation. | ||||||
| 2 | (22) Beginning January 1, 2000, personal property, | ||||||
| 3 | including food, purchased through fundraising events for the | ||||||
| 4 | benefit of a public or private elementary or secondary school, | ||||||
| 5 | a group of those schools, or one or more school districts if | ||||||
| 6 | the events are sponsored by an entity recognized by the school | ||||||
| 7 | district that consists primarily of volunteers and includes | ||||||
| 8 | parents and teachers of the school children. This paragraph | ||||||
| 9 | does not apply to fundraising events (i) for the benefit of | ||||||
| 10 | private home instruction or (ii) for which the fundraising | ||||||
| 11 | entity purchases the personal property sold at the events from | ||||||
| 12 | another individual or entity that sold the property for the | ||||||
| 13 | purpose of resale by the fundraising entity and that profits | ||||||
| 14 | from the sale to the fundraising entity. This paragraph is | ||||||
| 15 | exempt from the provisions of Section 3-55. | ||||||
| 16 | (23) Beginning January 1, 2000 and through December 31, | ||||||
| 17 | 2001, new or used automatic vending machines that prepare and | ||||||
| 18 | serve hot food and beverages, including coffee, soup, and | ||||||
| 19 | other items, and replacement parts for these machines. | ||||||
| 20 | Beginning January 1, 2002 and through June 30, 2003, machines | ||||||
| 21 | and parts for machines used in commercial, coin-operated | ||||||
| 22 | amusement and vending business if a use or occupation tax is | ||||||
| 23 | paid on the gross receipts derived from the use of the | ||||||
| 24 | commercial, coin-operated amusement and vending machines. This | ||||||
| 25 | paragraph is exempt from the provisions of Section 3-55. | ||||||
| 26 | (24) Beginning on August 2, 2001 (the effective date of | ||||||
| |||||||
| |||||||
| 1 | Public Act 92-227), computers and communications equipment | ||||||
| 2 | utilized for any hospital purpose and equipment used in the | ||||||
| 3 | diagnosis, analysis, or treatment of hospital patients sold to | ||||||
| 4 | a lessor who leases the equipment, under a lease of one year or | ||||||
| 5 | longer executed or in effect at the time of the purchase, to a | ||||||
| 6 | hospital that has been issued an active tax exemption | ||||||
| 7 | identification number by the Department under Section 1g of | ||||||
| 8 | the Retailers' Occupation Tax Act. This paragraph is exempt | ||||||
| 9 | from the provisions of Section 3-55. | ||||||
| 10 | (25) Beginning on August 2, 2001 (the effective date of | ||||||
| 11 | Public Act 92-227), personal property sold to a lessor who | ||||||
| 12 | leases the property, under a lease of one year or longer | ||||||
| 13 | executed or in effect at the time of the purchase, to a | ||||||
| 14 | governmental body that has been issued an active tax exemption | ||||||
| 15 | identification number by the Department under Section 1g of | ||||||
| 16 | the Retailers' Occupation Tax Act. This paragraph is exempt | ||||||
| 17 | from the provisions of Section 3-55. | ||||||
| 18 | (26) Beginning on January 1, 2002 and through June 30, | ||||||
| 19 | 2016, tangible personal property purchased from an Illinois | ||||||
| 20 | retailer by a taxpayer engaged in centralized purchasing | ||||||
| 21 | activities in Illinois who will, upon receipt of the property | ||||||
| 22 | in Illinois, temporarily store the property in Illinois (i) | ||||||
| 23 | for the purpose of subsequently transporting it outside this | ||||||
| 24 | State for use or consumption thereafter solely outside this | ||||||
| 25 | State or (ii) for the purpose of being processed, fabricated, | ||||||
| 26 | or manufactured into, attached to, or incorporated into other | ||||||
| |||||||
| |||||||
| 1 | tangible personal property to be transported outside this | ||||||
| 2 | State and thereafter used or consumed solely outside this | ||||||
| 3 | State. The Director of Revenue shall, pursuant to rules | ||||||
| 4 | adopted in accordance with the Illinois Administrative | ||||||
| 5 | Procedure Act, issue a permit to any taxpayer in good standing | ||||||
| 6 | with the Department who is eligible for the exemption under | ||||||
| 7 | this paragraph (26). The permit issued under this paragraph | ||||||
| 8 | (26) shall authorize the holder, to the extent and in the | ||||||
| 9 | manner specified in the rules adopted under this Act, to | ||||||
| 10 | purchase tangible personal property from a retailer exempt | ||||||
| 11 | from the taxes imposed by this Act. Taxpayers shall maintain | ||||||
| 12 | all necessary books and records to substantiate the use and | ||||||
| 13 | consumption of all such tangible personal property outside of | ||||||
| 14 | the State of Illinois. | ||||||
| 15 | (27) Beginning January 1, 2008, tangible personal property | ||||||
| 16 | used in the construction or maintenance of a community water | ||||||
| 17 | supply, as defined under Section 3.145 of the Environmental | ||||||
| 18 | Protection Act, that is operated by a not-for-profit | ||||||
| 19 | corporation that holds a valid water supply permit issued | ||||||
| 20 | under Title IV of the Environmental Protection Act. This | ||||||
| 21 | paragraph is exempt from the provisions of Section 3-55. | ||||||
| 22 | (28) Tangible personal property sold to a | ||||||
| 23 | public-facilities corporation, as described in Section | ||||||
| 24 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
| 25 | constructing or furnishing a municipal convention hall, but | ||||||
| 26 | only if the legal title to the municipal convention hall is | ||||||
| |||||||
| |||||||
| 1 | transferred to the municipality without any further | ||||||
| 2 | consideration by or on behalf of the municipality at the time | ||||||
| 3 | of the completion of the municipal convention hall or upon the | ||||||
| 4 | retirement or redemption of any bonds or other debt | ||||||
| 5 | instruments issued by the public-facilities corporation in | ||||||
| 6 | connection with the development of the municipal convention | ||||||
| 7 | hall. This exemption includes existing public-facilities | ||||||
| 8 | corporations as provided in Section 11-65-25 of the Illinois | ||||||
| 9 | Municipal Code. This paragraph is exempt from the provisions | ||||||
| 10 | of Section 3-55. | ||||||
| 11 | (29) Beginning January 1, 2010 and continuing through | ||||||
| 12 | December 31, 2029, materials, parts, equipment, components, | ||||||
| 13 | and furnishings incorporated into or upon an aircraft as part | ||||||
| 14 | of the modification, refurbishment, completion, replacement, | ||||||
| 15 | repair, or maintenance of the aircraft. This exemption | ||||||
| 16 | includes consumable supplies used in the modification, | ||||||
| 17 | refurbishment, completion, replacement, repair, and | ||||||
| 18 | maintenance of aircraft. However, until January 1, 2024, this | ||||||
| 19 | exemption excludes any materials, parts, equipment, | ||||||
| 20 | components, and consumable supplies used in the modification, | ||||||
| 21 | replacement, repair, and maintenance of aircraft engines or | ||||||
| 22 | power plants, whether such engines or power plants are | ||||||
| 23 | installed or uninstalled upon any such aircraft. "Consumable | ||||||
| 24 | supplies" include, but are not limited to, adhesive, tape, | ||||||
| 25 | sandpaper, general purpose lubricants, cleaning solution, | ||||||
| 26 | latex gloves, and protective films. | ||||||
| |||||||
| |||||||
| 1 | Beginning January 1, 2010 and continuing through December | ||||||
| 2 | 31, 2023, this exemption applies only to the transfer of | ||||||
| 3 | qualifying tangible personal property incident to the | ||||||
| 4 | modification, refurbishment, completion, replacement, repair, | ||||||
| 5 | or maintenance of an aircraft by persons who (i) hold an Air | ||||||
| 6 | Agency Certificate and are empowered to operate an approved | ||||||
| 7 | repair station by the Federal Aviation Administration, (ii) | ||||||
| 8 | have a Class IV Rating, and (iii) conduct operations in | ||||||
| 9 | accordance with Part 145 of the Federal Aviation Regulations. | ||||||
| 10 | The exemption does not include aircraft operated by a | ||||||
| 11 | commercial air carrier providing scheduled passenger air | ||||||
| 12 | service pursuant to authority issued under Part 121 or Part | ||||||
| 13 | 129 of the Federal Aviation Regulations. From January 1, 2024 | ||||||
| 14 | through December 31, 2029, this exemption applies only to the | ||||||
| 15 | use of qualifying tangible personal property by: (A) persons | ||||||
| 16 | who modify, refurbish, complete, repair, replace, or maintain | ||||||
| 17 | aircraft and who (i) hold an Air Agency Certificate and are | ||||||
| 18 | empowered to operate an approved repair station by the Federal | ||||||
| 19 | Aviation Administration, (ii) have a Class IV Rating, and | ||||||
| 20 | (iii) conduct operations in accordance with Part 145 of the | ||||||
| 21 | Federal Aviation Regulations; and (B) persons who engage in | ||||||
| 22 | the modification, replacement, repair, and maintenance of | ||||||
| 23 | aircraft engines or power plants without regard to whether or | ||||||
| 24 | not those persons meet the qualifications of item (A). | ||||||
| 25 | The changes made to this paragraph (29) by Public Act | ||||||
| 26 | 98-534 are declarative of existing law. It is the intent of the | ||||||
| |||||||
| |||||||
| 1 | General Assembly that the exemption under this paragraph (29) | ||||||
| 2 | applies continuously from January 1, 2010 through December 31, | ||||||
| 3 | 2024; however, no claim for credit or refund is allowed for | ||||||
| 4 | taxes paid as a result of the disallowance of this exemption on | ||||||
| 5 | or after January 1, 2015 and prior to February 5, 2020 (the | ||||||
| 6 | effective date of Public Act 101-629). | ||||||
| 7 | (30) Beginning January 1, 2017 and through December 31, | ||||||
| 8 | 2026, menstrual pads, tampons, and menstrual cups. | ||||||
| 9 | (31) Tangible personal property transferred to a purchaser | ||||||
| 10 | who is exempt from tax by operation of federal law. This | ||||||
| 11 | paragraph is exempt from the provisions of Section 3-55. | ||||||
| 12 | (32) Qualified tangible personal property used in the | ||||||
| 13 | construction or operation of a data center that has been | ||||||
| 14 | granted a certificate of exemption by the Department of | ||||||
| 15 | Commerce and Economic Opportunity, whether that tangible | ||||||
| 16 | personal property is purchased by the owner, operator, or | ||||||
| 17 | tenant of the data center or by a contractor or subcontractor | ||||||
| 18 | of the owner, operator, or tenant. Data centers that would | ||||||
| 19 | have qualified for a certificate of exemption prior to January | ||||||
| 20 | 1, 2020 had Public Act 101-31 been in effect, may apply for and | ||||||
| 21 | obtain an exemption for subsequent purchases of computer | ||||||
| 22 | equipment or enabling software purchased or leased to upgrade, | ||||||
| 23 | supplement, or replace computer equipment or enabling software | ||||||
| 24 | purchased or leased in the original investment that would have | ||||||
| 25 | qualified. | ||||||
| 26 | The Department of Commerce and Economic Opportunity shall | ||||||
| |||||||
| |||||||
| 1 | grant a certificate of exemption under this item (32) to | ||||||
| 2 | qualified data centers as defined by Section 605-1025 of the | ||||||
| 3 | Department of Commerce and Economic Opportunity Law of the | ||||||
| 4 | Civil Administrative Code of Illinois. | ||||||
| 5 | For the purposes of this item (32): | ||||||
| 6 | "Data center" means a building or a series of | ||||||
| 7 | buildings rehabilitated or constructed to house working | ||||||
| 8 | servers in one physical location or multiple sites within | ||||||
| 9 | the State of Illinois. | ||||||
| 10 | "Qualified tangible personal property" means: | ||||||
| 11 | electrical systems and equipment; climate control and | ||||||
| 12 | chilling equipment and systems; mechanical systems and | ||||||
| 13 | equipment; monitoring and secure systems; emergency | ||||||
| 14 | generators; hardware; computers; servers; data storage | ||||||
| 15 | devices; network connectivity equipment; racks; cabinets; | ||||||
| 16 | telecommunications cabling infrastructure; raised floor | ||||||
| 17 | systems; peripheral components or systems; software; | ||||||
| 18 | mechanical, electrical, or plumbing systems; battery | ||||||
| 19 | systems; cooling systems and towers; temperature control | ||||||
| 20 | systems; other cabling; and other data center | ||||||
| 21 | infrastructure equipment and systems necessary to operate | ||||||
| 22 | qualified tangible personal property, including fixtures; | ||||||
| 23 | and component parts of any of the foregoing, including | ||||||
| 24 | installation, maintenance, repair, refurbishment, and | ||||||
| 25 | replacement of qualified tangible personal property to | ||||||
| 26 | generate, transform, transmit, distribute, or manage | ||||||
| |||||||
| |||||||
| 1 | electricity necessary to operate qualified tangible | ||||||
| 2 | personal property; and all other tangible personal | ||||||
| 3 | property that is essential to the operations of a computer | ||||||
| 4 | data center. The term "qualified tangible personal | ||||||
| 5 | property" also includes building materials physically | ||||||
| 6 | incorporated into in to the qualifying data center. To | ||||||
| 7 | document the exemption allowed under this Section, the | ||||||
| 8 | retailer must obtain from the purchaser a copy of the | ||||||
| 9 | certificate of eligibility issued by the Department of | ||||||
| 10 | Commerce and Economic Opportunity. | ||||||
| 11 | This item (32) is exempt from the provisions of Section | ||||||
| 12 | 3-55. | ||||||
| 13 | (33) Beginning July 1, 2022, breast pumps, breast pump | ||||||
| 14 | collection and storage supplies, and breast pump kits. This | ||||||
| 15 | item (33) is exempt from the provisions of Section 3-55. As | ||||||
| 16 | used in this item (33): | ||||||
| 17 | "Breast pump" means an electrically controlled or | ||||||
| 18 | manually controlled pump device designed or marketed to be | ||||||
| 19 | used to express milk from a human breast during lactation, | ||||||
| 20 | including the pump device and any battery, AC adapter, or | ||||||
| 21 | other power supply unit that is used to power the pump | ||||||
| 22 | device and is packaged and sold with the pump device at the | ||||||
| 23 | time of sale. | ||||||
| 24 | "Breast pump collection and storage supplies" means | ||||||
| 25 | items of tangible personal property designed or marketed | ||||||
| 26 | to be used in conjunction with a breast pump to collect | ||||||
| |||||||
| |||||||
| 1 | milk expressed from a human breast and to store collected | ||||||
| 2 | milk until it is ready for consumption. | ||||||
| 3 | "Breast pump collection and storage supplies" | ||||||
| 4 | includes, but is not limited to: breast shields and breast | ||||||
| 5 | shield connectors; breast pump tubes and tubing adapters; | ||||||
| 6 | breast pump valves and membranes; backflow protectors and | ||||||
| 7 | backflow protector adaptors; bottles and bottle caps | ||||||
| 8 | specific to the operation of the breast pump; and breast | ||||||
| 9 | milk storage bags. | ||||||
| 10 | "Breast pump collection and storage supplies" does not | ||||||
| 11 | include: (1) bottles and bottle caps not specific to the | ||||||
| 12 | operation of the breast pump; (2) breast pump travel bags | ||||||
| 13 | and other similar carrying accessories, including ice | ||||||
| 14 | packs, labels, and other similar products; (3) breast pump | ||||||
| 15 | cleaning supplies; (4) nursing bras, bra pads, breast | ||||||
| 16 | shells, and other similar products; and (5) creams, | ||||||
| 17 | ointments, and other similar products that relieve | ||||||
| 18 | breastfeeding-related symptoms or conditions of the | ||||||
| 19 | breasts or nipples, unless sold as part of a breast pump | ||||||
| 20 | kit that is pre-packaged by the breast pump manufacturer | ||||||
| 21 | or distributor. | ||||||
| 22 | "Breast pump kit" means a kit that: (1) contains no | ||||||
| 23 | more than a breast pump, breast pump collection and | ||||||
| 24 | storage supplies, a rechargeable battery for operating the | ||||||
| 25 | breast pump, a breastmilk cooler, bottle stands, ice | ||||||
| 26 | packs, and a breast pump carrying case; and (2) is | ||||||
| |||||||
| |||||||
| 1 | pre-packaged as a breast pump kit by the breast pump | ||||||
| 2 | manufacturer or distributor. | ||||||
| 3 | (34) Tangible personal property sold by or on behalf of | ||||||
| 4 | the State Treasurer pursuant to the Revised Uniform Unclaimed | ||||||
| 5 | Property Act. This item (34) is exempt from the provisions of | ||||||
| 6 | Section 3-55. | ||||||
| 7 | (35) Beginning on January 1, 2024, tangible personal | ||||||
| 8 | property purchased by an active duty member of the armed | ||||||
| 9 | forces of the United States who presents valid military | ||||||
| 10 | identification and purchases the property using a form of | ||||||
| 11 | payment where the federal government is the payor. The member | ||||||
| 12 | of the armed forces must complete, at the point of sale, a form | ||||||
| 13 | prescribed by the Department of Revenue documenting that the | ||||||
| 14 | transaction is eligible for the exemption under this | ||||||
| 15 | paragraph. Retailers must keep the form as documentation of | ||||||
| 16 | the exemption in their records for a period of not less than 6 | ||||||
| 17 | years. "Armed forces of the United States" means the United | ||||||
| 18 | States Army, Navy, Air Force, Marine Corps, or Coast Guard. | ||||||
| 19 | This paragraph is exempt from the provisions of Section 3-55. | ||||||
| 20 | (36) The lease of the following tangible personal | ||||||
| 21 | property: | ||||||
| 22 | (1) computer software transferred subject to a license | ||||||
| 23 | that meets the following requirements: | ||||||
| 24 | (A) it is evidenced by a written agreement signed | ||||||
| 25 | by the licensor and the customer; | ||||||
| 26 | (i) an electronic agreement in which the | ||||||
| |||||||
| |||||||
| 1 | customer accepts the license by means of an | ||||||
| 2 | electronic signature that is verifiable and can be | ||||||
| 3 | authenticated and is attached to or made part of | ||||||
| 4 | the license will comply with this requirement; | ||||||
| 5 | (ii) a license agreement in which the customer | ||||||
| 6 | electronically accepts the terms by clicking "I | ||||||
| 7 | agree" does not comply with this requirement; | ||||||
| 8 | (B) it restricts the customer's duplication and | ||||||
| 9 | use of the software; | ||||||
| 10 | (C) it prohibits the customer from licensing, | ||||||
| 11 | sublicensing, or transferring the software to a third | ||||||
| 12 | party (except to a related party) without the | ||||||
| 13 | permission and continued control of the licensor; | ||||||
| 14 | (D) the licensor has a policy of providing another | ||||||
| 15 | copy at minimal or no charge if the customer loses or | ||||||
| 16 | damages the software, or of permitting the licensee to | ||||||
| 17 | make and keep an archival copy, and such policy is | ||||||
| 18 | either stated in the license agreement, supported by | ||||||
| 19 | the licensor's books and records, or supported by a | ||||||
| 20 | notarized statement made under penalties of perjury by | ||||||
| 21 | the licensor; and | ||||||
| 22 | (E) the customer must destroy or return all copies | ||||||
| 23 | of the software to the licensor at the end of the | ||||||
| 24 | license period; this provision is deemed to be met, in | ||||||
| 25 | the case of a perpetual license, without being set | ||||||
| 26 | forth in the license agreement; and | ||||||
| |||||||
| |||||||
| 1 | (2) property that is subject to a tax on lease | ||||||
| 2 | receipts imposed by a home rule unit of local government | ||||||
| 3 | if the ordinance imposing that tax was adopted prior to | ||||||
| 4 | January 1, 2023. | ||||||
| 5 | (Source: P.A. 102-16, eff. 6-17-21; 102-700, Article 70, | ||||||
| 6 | Section 70-15, eff. 4-19-22; 102-700, Article 75, Section | ||||||
| 7 | 75-15, eff. 4-19-22; 102-1026, eff. 5-27-22; 103-9, Article 5, | ||||||
| 8 | Section 5-15, eff. 6-7-23; 103-9, Article 15, Section 15-15, | ||||||
| 9 | eff. 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; | ||||||
| 10 | revised 12-12-23.)
| ||||||
| 11 | (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10) | ||||||
| 12 | Sec. 3-10. Rate of tax. Unless otherwise provided in this | ||||||
| 13 | Section, the tax imposed by this Act is at the rate of 6.25% of | ||||||
| 14 | the "selling price", as defined in Section 2 of the Service Use | ||||||
| 15 | Tax Act, of the tangible personal property, including, on and | ||||||
| 16 | after January 1, 2025, tangible personal property transferred | ||||||
| 17 | by lease. For the purpose of computing this tax, in no event | ||||||
| 18 | shall the "selling price" be less than the cost price to the | ||||||
| 19 | serviceman of the tangible personal property transferred. The | ||||||
| 20 | selling price of each item of tangible personal property | ||||||
| 21 | transferred as an incident of a sale of service may be shown as | ||||||
| 22 | a distinct and separate item on the serviceman's billing to | ||||||
| 23 | the service customer. If the selling price is not so shown, the | ||||||
| 24 | selling price of the tangible personal property is deemed to | ||||||
| 25 | be 50% of the serviceman's entire billing to the service | ||||||
| |||||||
| |||||||
| 1 | customer. When, however, a serviceman contracts to design, | ||||||
| 2 | develop, and produce special order machinery or equipment, the | ||||||
| 3 | tax imposed by this Act shall be based on the serviceman's cost | ||||||
| 4 | price of the tangible personal property transferred incident | ||||||
| 5 | to the completion of the contract. | ||||||
| 6 | Beginning on July 1, 2000 and through December 31, 2000, | ||||||
| 7 | with respect to motor fuel, as defined in Section 1.1 of the | ||||||
| 8 | Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of | ||||||
| 9 | the Use Tax Act, the tax is imposed at the rate of 1.25%. | ||||||
| 10 | With respect to gasohol, as defined in the Use Tax Act, the | ||||||
| 11 | tax imposed by this Act shall apply to (i) 70% of the cost | ||||||
| 12 | price of property transferred as an incident to the sale of | ||||||
| 13 | service on or after January 1, 1990, and before July 1, 2003, | ||||||
| 14 | (ii) 80% of the selling price of property transferred as an | ||||||
| 15 | incident to the sale of service on or after July 1, 2003 and on | ||||||
| 16 | or before July 1, 2017, (iii) 100% of the selling price of | ||||||
| 17 | property transferred as an incident to the sale of service | ||||||
| 18 | after July 1, 2017 and prior to January 1, 2024, (iv) 90% of | ||||||
| 19 | the selling price of property transferred as an incident to | ||||||
| 20 | the sale of service on or after January 1, 2024 and on or | ||||||
| 21 | before December 31, 2028, and (v) 100% of the selling price of | ||||||
| 22 | property transferred as an incident to the sale of service | ||||||
| 23 | after December 31, 2028. If, at any time, however, the tax | ||||||
| 24 | under this Act on sales of gasohol, as defined in the Use Tax | ||||||
| 25 | Act, is imposed at the rate of 1.25%, then the tax imposed by | ||||||
| 26 | this Act applies to 100% of the proceeds of sales of gasohol | ||||||
| |||||||
| |||||||
| 1 | made during that time. | ||||||
| 2 | With respect to mid-range ethanol blends, as defined in | ||||||
| 3 | Section 3-44.3 of the Use Tax Act, the tax imposed by this Act | ||||||
| 4 | applies to (i) 80% of the selling price of property | ||||||
| 5 | transferred as an incident to the sale of service on or after | ||||||
| 6 | January 1, 2024 and on or before December 31, 2028 and (ii) | ||||||
| 7 | 100% of the selling price of property transferred as an | ||||||
| 8 | incident to the sale of service after December 31, 2028. If, at | ||||||
| 9 | any time, however, the tax under this Act on sales of mid-range | ||||||
| 10 | ethanol blends is imposed at the rate of 1.25%, then the tax | ||||||
| 11 | imposed by this Act applies to 100% of the selling price of | ||||||
| 12 | mid-range ethanol blends transferred as an incident to the | ||||||
| 13 | sale of service during that time. | ||||||
| 14 | With respect to majority blended ethanol fuel, as defined | ||||||
| 15 | in the Use Tax Act, the tax imposed by this Act does not apply | ||||||
| 16 | to the selling price of property transferred as an incident to | ||||||
| 17 | the sale of service on or after July 1, 2003 and on or before | ||||||
| 18 | December 31, 2028 but applies to 100% of the selling price | ||||||
| 19 | thereafter. | ||||||
| 20 | With respect to biodiesel blends, as defined in the Use | ||||||
| 21 | Tax Act, with no less than 1% and no more than 10% biodiesel, | ||||||
| 22 | the tax imposed by this Act applies to (i) 80% of the selling | ||||||
| 23 | price of property transferred as an incident to the sale of | ||||||
| 24 | service on or after July 1, 2003 and on or before December 31, | ||||||
| 25 | 2018 and (ii) 100% of the proceeds of the selling price after | ||||||
| 26 | December 31, 2018 and before January 1, 2024. On and after | ||||||
| |||||||
| |||||||
| 1 | January 1, 2024 and on or before December 31, 2030, the | ||||||
| 2 | taxation of biodiesel, renewable diesel, and biodiesel blends | ||||||
| 3 | shall be as provided in Section 3-5.1 of the Use Tax Act. If, | ||||||
| 4 | at any time, however, the tax under this Act on sales of | ||||||
| 5 | biodiesel blends, as defined in the Use Tax Act, with no less | ||||||
| 6 | than 1% and no more than 10% biodiesel is imposed at the rate | ||||||
| 7 | of 1.25%, then the tax imposed by this Act applies to 100% of | ||||||
| 8 | the proceeds of sales of biodiesel blends with no less than 1% | ||||||
| 9 | and no more than 10% biodiesel made during that time. | ||||||
| 10 | With respect to biodiesel, as defined in the Use Tax Act, | ||||||
| 11 | and biodiesel blends, as defined in the Use Tax Act, with more | ||||||
| 12 | than 10% but no more than 99% biodiesel material, the tax | ||||||
| 13 | imposed by this Act does not apply to the proceeds of the | ||||||
| 14 | selling price of property transferred as an incident to the | ||||||
| 15 | sale of service on or after July 1, 2003 and on or before | ||||||
| 16 | December 31, 2023. On and after January 1, 2024 and on or | ||||||
| 17 | before December 31, 2030, the taxation of biodiesel, renewable | ||||||
| 18 | diesel, and biodiesel blends shall be as provided in Section | ||||||
| 19 | 3-5.1 of the Use Tax Act. | ||||||
| 20 | At the election of any registered serviceman made for each | ||||||
| 21 | fiscal year, sales of service in which the aggregate annual | ||||||
| 22 | cost price of tangible personal property transferred as an | ||||||
| 23 | incident to the sales of service is less than 35%, or 75% in | ||||||
| 24 | the case of servicemen transferring prescription drugs or | ||||||
| 25 | servicemen engaged in graphic arts production, of the | ||||||
| 26 | aggregate annual total gross receipts from all sales of | ||||||
| |||||||
| |||||||
| 1 | service, the tax imposed by this Act shall be based on the | ||||||
| 2 | serviceman's cost price of the tangible personal property | ||||||
| 3 | transferred incident to the sale of those services. | ||||||
| 4 | Until July 1, 2022 and beginning again on July 1, 2023, the | ||||||
| 5 | tax shall be imposed at the rate of 1% on food prepared for | ||||||
| 6 | immediate consumption and transferred incident to a sale of | ||||||
| 7 | service subject to this Act or the Service Use Tax Act by an | ||||||
| 8 | entity licensed under the Hospital Licensing Act, the Nursing | ||||||
| 9 | Home Care Act, the Assisted Living and Shared Housing Act, the | ||||||
| 10 | ID/DD Community Care Act, the MC/DD Act, the Specialized | ||||||
| 11 | Mental Health Rehabilitation Act of 2013, or the Child Care | ||||||
| 12 | Act of 1969, or an entity that holds a permit issued pursuant | ||||||
| 13 | to the Life Care Facilities Act. Until July 1, 2022 and | ||||||
| 14 | beginning again on July 1, 2023, the tax shall also be imposed | ||||||
| 15 | at the rate of 1% on food for human consumption that is to be | ||||||
| 16 | consumed off the premises where it is sold (other than | ||||||
| 17 | alcoholic beverages, food consisting of or infused with adult | ||||||
| 18 | use cannabis, soft drinks, and food that has been prepared for | ||||||
| 19 | immediate consumption and is not otherwise included in this | ||||||
| 20 | paragraph). | ||||||
| 21 | Beginning on July 1, 2022 and until July 1, 2023, the tax | ||||||
| 22 | shall be imposed at the rate of 0% on food prepared for | ||||||
| 23 | immediate consumption and transferred incident to a sale of | ||||||
| 24 | service subject to this Act or the Service Use Tax Act by an | ||||||
| 25 | entity licensed under the Hospital Licensing Act, the Nursing | ||||||
| 26 | Home Care Act, the Assisted Living and Shared Housing Act, the | ||||||
| |||||||
| |||||||
| 1 | ID/DD Community Care Act, the MC/DD Act, the Specialized | ||||||
| 2 | Mental Health Rehabilitation Act of 2013, or the Child Care | ||||||
| 3 | Act of 1969, or an entity that holds a permit issued pursuant | ||||||
| 4 | to the Life Care Facilities Act. Beginning July 1, 2022 and | ||||||
| 5 | until July 1, 2023, the tax shall also be imposed at the rate | ||||||
| 6 | of 0% on food for human consumption that is to be consumed off | ||||||
| 7 | the premises where it is sold (other than alcoholic beverages, | ||||||
| 8 | food consisting of or infused with adult use cannabis, soft | ||||||
| 9 | drinks, and food that has been prepared for immediate | ||||||
| 10 | consumption and is not otherwise included in this paragraph). | ||||||
| 11 | The tax shall also be imposed at the rate of 1% on | ||||||
| 12 | prescription and nonprescription medicines, drugs, medical | ||||||
| 13 | appliances, products classified as Class III medical devices | ||||||
| 14 | by the United States Food and Drug Administration that are | ||||||
| 15 | used for cancer treatment pursuant to a prescription, as well | ||||||
| 16 | as any accessories and components related to those devices, | ||||||
| 17 | modifications to a motor vehicle for the purpose of rendering | ||||||
| 18 | it usable by a person with a disability, and insulin, blood | ||||||
| 19 | sugar testing materials, syringes, and needles used by human | ||||||
| 20 | diabetics. For the purposes of this Section, until September | ||||||
| 21 | 1, 2009: the term "soft drinks" means any complete, finished, | ||||||
| 22 | ready-to-use, non-alcoholic drink, whether carbonated or not, | ||||||
| 23 | including, but not limited to, soda water, cola, fruit juice, | ||||||
| 24 | vegetable juice, carbonated water, and all other preparations | ||||||
| 25 | commonly known as soft drinks of whatever kind or description | ||||||
| 26 | that are contained in any closed or sealed can, carton, or | ||||||
| |||||||
| |||||||
| 1 | container, regardless of size; but "soft drinks" does not | ||||||
| 2 | include coffee, tea, non-carbonated water, infant formula, | ||||||
| 3 | milk or milk products as defined in the Grade A Pasteurized | ||||||
| 4 | Milk and Milk Products Act, or drinks containing 50% or more | ||||||
| 5 | natural fruit or vegetable juice. | ||||||
| 6 | Notwithstanding any other provisions of this Act, | ||||||
| 7 | beginning September 1, 2009, "soft drinks" means non-alcoholic | ||||||
| 8 | beverages that contain natural or artificial sweeteners. "Soft | ||||||
| 9 | drinks" does not include beverages that contain milk or milk | ||||||
| 10 | products, soy, rice or similar milk substitutes, or greater | ||||||
| 11 | than 50% of vegetable or fruit juice by volume. | ||||||
| 12 | Until August 1, 2009, and notwithstanding any other | ||||||
| 13 | provisions of this Act, "food for human consumption that is to | ||||||
| 14 | be consumed off the premises where it is sold" includes all | ||||||
| 15 | food sold through a vending machine, except soft drinks and | ||||||
| 16 | food products that are dispensed hot from a vending machine, | ||||||
| 17 | regardless of the location of the vending machine. Beginning | ||||||
| 18 | August 1, 2009, and notwithstanding any other provisions of | ||||||
| 19 | this Act, "food for human consumption that is to be consumed | ||||||
| 20 | off the premises where it is sold" includes all food sold | ||||||
| 21 | through a vending machine, except soft drinks, candy, and food | ||||||
| 22 | products that are dispensed hot from a vending machine, | ||||||
| 23 | regardless of the location of the vending machine. | ||||||
| 24 | Notwithstanding any other provisions of this Act, | ||||||
| 25 | beginning September 1, 2009, "food for human consumption that | ||||||
| 26 | is to be consumed off the premises where it is sold" does not | ||||||
| |||||||
| |||||||
| 1 | include candy. For purposes of this Section, "candy" means a | ||||||
| 2 | preparation of sugar, honey, or other natural or artificial | ||||||
| 3 | sweeteners in combination with chocolate, fruits, nuts or | ||||||
| 4 | other ingredients or flavorings in the form of bars, drops, or | ||||||
| 5 | pieces. "Candy" does not include any preparation that contains | ||||||
| 6 | flour or requires refrigeration. | ||||||
| 7 | Notwithstanding any other provisions of this Act, | ||||||
| 8 | beginning September 1, 2009, "nonprescription medicines and | ||||||
| 9 | drugs" does not include grooming and hygiene products. For | ||||||
| 10 | purposes of this Section, "grooming and hygiene products" | ||||||
| 11 | includes, but is not limited to, soaps and cleaning solutions, | ||||||
| 12 | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | ||||||
| 13 | lotions and screens, unless those products are available by | ||||||
| 14 | prescription only, regardless of whether the products meet the | ||||||
| 15 | definition of "over-the-counter-drugs". For the purposes of | ||||||
| 16 | this paragraph, "over-the-counter-drug" means a drug for human | ||||||
| 17 | use that contains a label that identifies the product as a drug | ||||||
| 18 | as required by 21 CFR 201.66. The "over-the-counter-drug" | ||||||
| 19 | label includes: | ||||||
| 20 | (A) a "Drug Facts" panel; or | ||||||
| 21 | (B) a statement of the "active ingredient(s)" with a | ||||||
| 22 | list of those ingredients contained in the compound, | ||||||
| 23 | substance or preparation. | ||||||
| 24 | Beginning on January 1, 2014 (the effective date of Public | ||||||
| 25 | Act 98-122), "prescription and nonprescription medicines and | ||||||
| 26 | drugs" includes medical cannabis purchased from a registered | ||||||
| |||||||
| |||||||
| 1 | dispensing organization under the Compassionate Use of Medical | ||||||
| 2 | Cannabis Program Act. | ||||||
| 3 | As used in this Section, "adult use cannabis" means | ||||||
| 4 | cannabis subject to tax under the Cannabis Cultivation | ||||||
| 5 | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law | ||||||
| 6 | and does not include cannabis subject to tax under the | ||||||
| 7 | Compassionate Use of Medical Cannabis Program Act. | ||||||
| 8 | (Source: P.A. 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; | ||||||
| 9 | 102-700, Article 20, Section 20-15, eff. 4-19-22; 102-700, | ||||||
| 10 | Article 60, Section 60-25, eff. 4-19-22; 103-9, eff. 6-7-23; | ||||||
| 11 | 103-154, eff. 6-30-23.)
| ||||||
| 12 | Section 75-20. The Retailers' Occupation Tax Act is | ||||||
| 13 | amended by changing the title of the Act, by changing Sections | ||||||
| 14 | 1, 2, 2-5, 2-10, 2-12, 2a, 2c, and 3, and by adding Section | ||||||
| 15 | 1.05 as follows:
| ||||||
| 16 | (35 ILCS 120/Act title) | ||||||
| 17 | An Act in relation to a tax upon persons engaged in the | ||||||
| 18 | business of selling, including leasing, tangible personal | ||||||
| 19 | property.
| ||||||
| 20 | (35 ILCS 120/1) (from Ch. 120, par. 440) | ||||||
| 21 | Sec. 1. Definitions. "Sale at retail" means any transfer | ||||||
| 22 | of the ownership of, the or title to, the possession or control | ||||||
| 23 | of, the right to possess or control, or a license to use | ||||||
| |||||||
| |||||||
| 1 | tangible personal property to a purchaser, for the purpose of | ||||||
| 2 | use or consumption, and not for the purpose of resale in any | ||||||
| 3 | form as tangible personal property to the extent not first | ||||||
| 4 | subjected to a use for which it was purchased, for a valuable | ||||||
| 5 | consideration: Provided that the property purchased is deemed | ||||||
| 6 | to be purchased for the purpose of resale, despite first being | ||||||
| 7 | used, to the extent to which it is resold as an ingredient of | ||||||
| 8 | an intentionally produced product or byproduct of | ||||||
| 9 | manufacturing. For this purpose, slag produced as an incident | ||||||
| 10 | to manufacturing pig iron or steel and sold is considered to be | ||||||
| 11 | an intentionally produced byproduct of manufacturing. | ||||||
| 12 | Transactions whereby the possession of the property is | ||||||
| 13 | transferred but the seller retains the title as security for | ||||||
| 14 | payment of the selling price shall be deemed to be sales. | ||||||
| 15 | "Sale at retail" shall be construed to include any | ||||||
| 16 | transfer of the ownership of, the or title to, the possession | ||||||
| 17 | or control of, the right to possess or control, or a license to | ||||||
| 18 | use tangible personal property to a purchaser, for use or | ||||||
| 19 | consumption by any other person to whom such purchaser may | ||||||
| 20 | transfer the tangible personal property without a valuable | ||||||
| 21 | consideration, and to include any transfer, whether made for | ||||||
| 22 | or without a valuable consideration, for resale in any form as | ||||||
| 23 | tangible personal property unless made in compliance with | ||||||
| 24 | Section 2c of this Act. | ||||||
| 25 | Sales of tangible personal property, which property, to | ||||||
| 26 | the extent not first subjected to a use for which it was | ||||||
| |||||||
| |||||||
| 1 | purchased, as an ingredient or constituent, goes into and | ||||||
| 2 | forms a part of tangible personal property subsequently the | ||||||
| 3 | subject of a "Sale at retail", are not sales at retail as | ||||||
| 4 | defined in this Act: Provided that the property purchased is | ||||||
| 5 | deemed to be purchased for the purpose of resale, despite | ||||||
| 6 | first being used, to the extent to which it is resold as an | ||||||
| 7 | ingredient of an intentionally produced product or byproduct | ||||||
| 8 | of manufacturing. | ||||||
| 9 | "Sale at retail" shall be construed to include any | ||||||
| 10 | Illinois florist's sales transaction in which the purchase | ||||||
| 11 | order is received in Illinois by a florist and the sale is for | ||||||
| 12 | use or consumption, but the Illinois florist has a florist in | ||||||
| 13 | another state deliver the property to the purchaser or the | ||||||
| 14 | purchaser's donee in such other state. | ||||||
| 15 | Nonreusable tangible personal property that is used by | ||||||
| 16 | persons engaged in the business of operating a restaurant, | ||||||
| 17 | cafeteria, or drive-in is a sale for resale when it is | ||||||
| 18 | transferred to customers in the ordinary course of business as | ||||||
| 19 | part of the sale of food or beverages and is used to deliver, | ||||||
| 20 | package, or consume food or beverages, regardless of where | ||||||
| 21 | consumption of the food or beverages occurs. Examples of those | ||||||
| 22 | items include, but are not limited to nonreusable, paper and | ||||||
| 23 | plastic cups, plates, baskets, boxes, sleeves, buckets or | ||||||
| 24 | other containers, utensils, straws, placemats, napkins, doggie | ||||||
| 25 | bags, and wrapping or packaging materials that are transferred | ||||||
| 26 | to customers as part of the sale of food or beverages in the | ||||||
| |||||||
| |||||||
| 1 | ordinary course of business. | ||||||
| 2 | The purchase, employment and transfer of such tangible | ||||||
| 3 | personal property as newsprint and ink for the primary purpose | ||||||
| 4 | of conveying news (with or without other information) is not a | ||||||
| 5 | purchase, use or sale of tangible personal property. | ||||||
| 6 | A person whose activities are organized and conducted | ||||||
| 7 | primarily as a not-for-profit service enterprise, and who | ||||||
| 8 | engages in selling tangible personal property at retail | ||||||
| 9 | (whether to the public or merely to members and their guests) | ||||||
| 10 | is engaged in the business of selling tangible personal | ||||||
| 11 | property at retail with respect to such transactions, | ||||||
| 12 | excepting only a person organized and operated exclusively for | ||||||
| 13 | charitable, religious or educational purposes either (1), to | ||||||
| 14 | the extent of sales by such person to its members, students, | ||||||
| 15 | patients or inmates of tangible personal property to be used | ||||||
| 16 | primarily for the purposes of such person, or (2), to the | ||||||
| 17 | extent of sales by such person of tangible personal property | ||||||
| 18 | which is not sold or offered for sale by persons organized for | ||||||
| 19 | profit. The selling of school books and school supplies by | ||||||
| 20 | schools at retail to students is not "primarily for the | ||||||
| 21 | purposes of" the school which does such selling. The | ||||||
| 22 | provisions of this paragraph shall not apply to nor subject to | ||||||
| 23 | taxation occasional dinners, socials or similar activities of | ||||||
| 24 | a person organized and operated exclusively for charitable, | ||||||
| 25 | religious or educational purposes, whether or not such | ||||||
| 26 | activities are open to the public. | ||||||
| |||||||
| |||||||
| 1 | A person who is the recipient of a grant or contract under | ||||||
| 2 | Title VII of the Older Americans Act of 1965 (P.L. 92-258) and | ||||||
| 3 | serves meals to participants in the federal Nutrition Program | ||||||
| 4 | for the Elderly in return for contributions established in | ||||||
| 5 | amount by the individual participant pursuant to a schedule of | ||||||
| 6 | suggested fees as provided for in the federal Act is not | ||||||
| 7 | engaged in the business of selling tangible personal property | ||||||
| 8 | at retail with respect to such transactions. | ||||||
| 9 | "Lease" means a transfer of the possession or control of, | ||||||
| 10 | the right to possess or control, or a license to use, but not | ||||||
| 11 | title to, tangible personal property for a fixed or | ||||||
| 12 | indeterminate term for consideration, regardless of the name | ||||||
| 13 | by which the transaction is called. "Lease" does not include a | ||||||
| 14 | lease entered into merely as a security agreement that does | ||||||
| 15 | not involve a transfer of possession or control from the | ||||||
| 16 | lessor to the lessee. | ||||||
| 17 | On and after January 1, 2025, the term "sale", when used in | ||||||
| 18 | this Act, includes a lease. | ||||||
| 19 | "Purchaser" means anyone who, through a sale at retail, | ||||||
| 20 | acquires the ownership of, the or title to, the possession or | ||||||
| 21 | control of, the right to possess or control, or a license to | ||||||
| 22 | use tangible personal property for a valuable consideration. | ||||||
| 23 | "Reseller of motor fuel" means any person engaged in the | ||||||
| 24 | business of selling or delivering or transferring title of | ||||||
| 25 | motor fuel to another person other than for use or | ||||||
| 26 | consumption. No person shall act as a reseller of motor fuel | ||||||
| |||||||
| |||||||
| 1 | within this State without first being registered as a reseller | ||||||
| 2 | pursuant to Section 2c or a retailer pursuant to Section 2a. | ||||||
| 3 | "Selling price" or the "amount of sale" means the | ||||||
| 4 | consideration for a sale valued in money whether received in | ||||||
| 5 | money or otherwise, including cash, credits, property, other | ||||||
| 6 | than as hereinafter provided, and services, but, prior to | ||||||
| 7 | January 1, 2020 and beginning again on January 1, 2022, not | ||||||
| 8 | including the value of or credit given for traded-in tangible | ||||||
| 9 | personal property where the item that is traded-in is of like | ||||||
| 10 | kind and character as that which is being sold; beginning | ||||||
| 11 | January 1, 2020 and until January 1, 2022, "selling price" | ||||||
| 12 | includes the portion of the value of or credit given for | ||||||
| 13 | traded-in motor vehicles of the First Division as defined in | ||||||
| 14 | Section 1-146 of the Illinois Vehicle Code of like kind and | ||||||
| 15 | character as that which is being sold that exceeds $10,000. | ||||||
| 16 | "Selling price" shall be determined without any deduction on | ||||||
| 17 | account of the cost of the property sold, the cost of materials | ||||||
| 18 | used, labor or service cost or any other expense whatsoever, | ||||||
| 19 | but does not include charges that are added to prices by | ||||||
| 20 | sellers on account of the seller's tax liability under this | ||||||
| 21 | Act, or on account of the seller's duty to collect, from the | ||||||
| 22 | purchaser, the tax that is imposed by the Use Tax Act, or, | ||||||
| 23 | except as otherwise provided with respect to any cigarette tax | ||||||
| 24 | imposed by a home rule unit, on account of the seller's tax | ||||||
| 25 | liability under any local occupation tax administered by the | ||||||
| 26 | Department, or, except as otherwise provided with respect to | ||||||
| |||||||
| |||||||
| 1 | any cigarette tax imposed by a home rule unit on account of the | ||||||
| 2 | seller's duty to collect, from the purchasers, the tax that is | ||||||
| 3 | imposed under any local use tax administered by the | ||||||
| 4 | Department. Effective December 1, 1985, "selling price" shall | ||||||
| 5 | include charges that are added to prices by sellers on account | ||||||
| 6 | of the seller's tax liability under the Cigarette Tax Act, on | ||||||
| 7 | account of the sellers' duty to collect, from the purchaser, | ||||||
| 8 | the tax imposed under the Cigarette Use Tax Act, and on account | ||||||
| 9 | of the seller's duty to collect, from the purchaser, any | ||||||
| 10 | cigarette tax imposed by a home rule unit. | ||||||
| 11 | The provisions of this paragraph, which provides only for | ||||||
| 12 | an alternative meaning of "selling price" with respect to the | ||||||
| 13 | sale of certain motor vehicles incident to the contemporaneous | ||||||
| 14 | lease of those motor vehicles, continue in effect and are not | ||||||
| 15 | changed by the tax on leases implemented by this amendatory | ||||||
| 16 | Act of the 103rd General Assembly. Notwithstanding any law to | ||||||
| 17 | the contrary, for any motor vehicle, as defined in Section | ||||||
| 18 | 1-146 of the Vehicle Code, that is sold on or after January 1, | ||||||
| 19 | 2015 for the purpose of leasing the vehicle for a defined | ||||||
| 20 | period that is longer than one year and (1) is a motor vehicle | ||||||
| 21 | of the second division that: (A) is a self-contained motor | ||||||
| 22 | vehicle designed or permanently converted to provide living | ||||||
| 23 | quarters for recreational, camping, or travel use, with direct | ||||||
| 24 | walk through access to the living quarters from the driver's | ||||||
| 25 | seat; (B) is of the van configuration designed for the | ||||||
| 26 | transportation of not less than 7 nor more than 16 passengers; | ||||||
| |||||||
| |||||||
| 1 | or (C) has a gross vehicle weight rating of 8,000 pounds or | ||||||
| 2 | less or (2) is a motor vehicle of the first division, "selling | ||||||
| 3 | price" or "amount of sale" means the consideration received by | ||||||
| 4 | the lessor pursuant to the lease contract, including amounts | ||||||
| 5 | due at lease signing and all monthly or other regular payments | ||||||
| 6 | charged over the term of the lease. Also included in the | ||||||
| 7 | selling price is any amount received by the lessor from the | ||||||
| 8 | lessee for the leased vehicle that is not calculated at the | ||||||
| 9 | time the lease is executed, including, but not limited to, | ||||||
| 10 | excess mileage charges and charges for excess wear and tear. | ||||||
| 11 | For sales that occur in Illinois, with respect to any amount | ||||||
| 12 | received by the lessor from the lessee for the leased vehicle | ||||||
| 13 | that is not calculated at the time the lease is executed, the | ||||||
| 14 | lessor who purchased the motor vehicle does not incur the tax | ||||||
| 15 | imposed by the Use Tax Act on those amounts, and the retailer | ||||||
| 16 | who makes the retail sale of the motor vehicle to the lessor is | ||||||
| 17 | not required to collect the tax imposed by the Use Tax Act or | ||||||
| 18 | to pay the tax imposed by this Act on those amounts. However, | ||||||
| 19 | the lessor who purchased the motor vehicle assumes the | ||||||
| 20 | liability for reporting and paying the tax on those amounts | ||||||
| 21 | directly to the Department in the same form (Illinois | ||||||
| 22 | Retailers' Occupation Tax, and local retailers' occupation | ||||||
| 23 | taxes, if applicable) in which the retailer would have | ||||||
| 24 | reported and paid such tax if the retailer had accounted for | ||||||
| 25 | the tax to the Department. For amounts received by the lessor | ||||||
| 26 | from the lessee that are not calculated at the time the lease | ||||||
| |||||||
| |||||||
| 1 | is executed, the lessor must file the return and pay the tax to | ||||||
| 2 | the Department by the due date otherwise required by this Act | ||||||
| 3 | for returns other than transaction returns. If the retailer is | ||||||
| 4 | entitled under this Act to a discount for collecting and | ||||||
| 5 | remitting the tax imposed under this Act to the Department | ||||||
| 6 | with respect to the sale of the motor vehicle to the lessor, | ||||||
| 7 | then the right to the discount provided in this Act shall be | ||||||
| 8 | transferred to the lessor with respect to the tax paid by the | ||||||
| 9 | lessor for any amount received by the lessor from the lessee | ||||||
| 10 | for the leased vehicle that is not calculated at the time the | ||||||
| 11 | lease is executed; provided that the discount is only allowed | ||||||
| 12 | if the return is timely filed and for amounts timely paid. The | ||||||
| 13 | "selling price" of a motor vehicle that is sold on or after | ||||||
| 14 | January 1, 2015 for the purpose of leasing for a defined period | ||||||
| 15 | of longer than one year shall not be reduced by the value of or | ||||||
| 16 | credit given for traded-in tangible personal property owned by | ||||||
| 17 | the lessor, nor shall it be reduced by the value of or credit | ||||||
| 18 | given for traded-in tangible personal property owned by the | ||||||
| 19 | lessee, regardless of whether the trade-in value thereof is | ||||||
| 20 | assigned by the lessee to the lessor. In the case of a motor | ||||||
| 21 | vehicle that is sold for the purpose of leasing for a defined | ||||||
| 22 | period of longer than one year, the sale occurs at the time of | ||||||
| 23 | the delivery of the vehicle, regardless of the due date of any | ||||||
| 24 | lease payments. A lessor who incurs a Retailers' Occupation | ||||||
| 25 | Tax liability on the sale of a motor vehicle coming off lease | ||||||
| 26 | may not take a credit against that liability for the Use Tax | ||||||
| |||||||
| |||||||
| 1 | the lessor paid upon the purchase of the motor vehicle (or for | ||||||
| 2 | any tax the lessor paid with respect to any amount received by | ||||||
| 3 | the lessor from the lessee for the leased vehicle that was not | ||||||
| 4 | calculated at the time the lease was executed) if the selling | ||||||
| 5 | price of the motor vehicle at the time of purchase was | ||||||
| 6 | calculated using the definition of "selling price" as defined | ||||||
| 7 | in this paragraph. Notwithstanding any other provision of this | ||||||
| 8 | Act to the contrary, lessors shall file all returns and make | ||||||
| 9 | all payments required under this paragraph to the Department | ||||||
| 10 | by electronic means in the manner and form as required by the | ||||||
| 11 | Department. This paragraph does not apply to leases of motor | ||||||
| 12 | vehicles for which, at the time the lease is entered into, the | ||||||
| 13 | term of the lease is not a defined period, including leases | ||||||
| 14 | with a defined initial period with the option to continue the | ||||||
| 15 | lease on a month-to-month or other basis beyond the initial | ||||||
| 16 | defined period. | ||||||
| 17 | The phrase "like kind and character" shall be liberally | ||||||
| 18 | construed (including but not limited to any form of motor | ||||||
| 19 | vehicle for any form of motor vehicle, or any kind of farm or | ||||||
| 20 | agricultural implement for any other kind of farm or | ||||||
| 21 | agricultural implement), while not including a kind of item | ||||||
| 22 | which, if sold at retail by that retailer, would be exempt from | ||||||
| 23 | retailers' occupation tax and use tax as an isolated or | ||||||
| 24 | occasional sale. | ||||||
| 25 | "Gross receipts" from the sales of tangible personal | ||||||
| 26 | property at retail means the total selling price or the amount | ||||||
| |||||||
| |||||||
| 1 | of such sales, as hereinbefore defined. In the case of charge | ||||||
| 2 | and time sales, the amount thereof shall be included only as | ||||||
| 3 | and when payments are received by the seller. In the case of | ||||||
| 4 | leases, except as otherwise provided in this Act, the amount | ||||||
| 5 | thereof shall be included only as and when gross receipts are | ||||||
| 6 | received by the lessor. Receipts or other consideration | ||||||
| 7 | derived by a seller from the sale, transfer or assignment of | ||||||
| 8 | accounts receivable to a wholly owned subsidiary will not be | ||||||
| 9 | deemed payments prior to the time the purchaser makes payment | ||||||
| 10 | on such accounts. | ||||||
| 11 | "Department" means the Department of Revenue. | ||||||
| 12 | "Person" means any natural individual, firm, partnership, | ||||||
| 13 | association, joint stock company, joint adventure, public or | ||||||
| 14 | private corporation, limited liability company, or a receiver, | ||||||
| 15 | executor, trustee, guardian or other representative appointed | ||||||
| 16 | by order of any court. | ||||||
| 17 | The isolated or occasional sale of tangible personal | ||||||
| 18 | property at retail by a person who does not hold himself out as | ||||||
| 19 | being engaged (or who does not habitually engage) in selling | ||||||
| 20 | such tangible personal property at retail, or a sale through a | ||||||
| 21 | bulk vending machine, does not constitute engaging in a | ||||||
| 22 | business of selling such tangible personal property at retail | ||||||
| 23 | within the meaning of this Act; provided that any person who is | ||||||
| 24 | engaged in a business which is not subject to the tax imposed | ||||||
| 25 | by this Act because of involving the sale of or a contract to | ||||||
| 26 | sell real estate or a construction contract to improve real | ||||||
| |||||||
| |||||||
| 1 | estate or a construction contract to engineer, install, and | ||||||
| 2 | maintain an integrated system of products, but who, in the | ||||||
| 3 | course of conducting such business, transfers tangible | ||||||
| 4 | personal property to users or consumers in the finished form | ||||||
| 5 | in which it was purchased, and which does not become real | ||||||
| 6 | estate or was not engineered and installed, under any | ||||||
| 7 | provision of a construction contract or real estate sale or | ||||||
| 8 | real estate sales agreement entered into with some other | ||||||
| 9 | person arising out of or because of such nontaxable business, | ||||||
| 10 | is engaged in the business of selling tangible personal | ||||||
| 11 | property at retail to the extent of the value of the tangible | ||||||
| 12 | personal property so transferred. If, in such a transaction, a | ||||||
| 13 | separate charge is made for the tangible personal property so | ||||||
| 14 | transferred, the value of such property, for the purpose of | ||||||
| 15 | this Act, shall be the amount so separately charged, but not | ||||||
| 16 | less than the cost of such property to the transferor; if no | ||||||
| 17 | separate charge is made, the value of such property, for the | ||||||
| 18 | purposes of this Act, is the cost to the transferor of such | ||||||
| 19 | tangible personal property. Construction contracts for the | ||||||
| 20 | improvement of real estate consisting of engineering, | ||||||
| 21 | installation, and maintenance of voice, data, video, security, | ||||||
| 22 | and all telecommunication systems do not constitute engaging | ||||||
| 23 | in a business of selling tangible personal property at retail | ||||||
| 24 | within the meaning of this Act if they are sold at one | ||||||
| 25 | specified contract price. | ||||||
| 26 | A person who holds himself or herself out as being engaged | ||||||
| |||||||
| |||||||
| 1 | (or who habitually engages) in selling tangible personal | ||||||
| 2 | property at retail is a person engaged in the business of | ||||||
| 3 | selling tangible personal property at retail hereunder with | ||||||
| 4 | respect to such sales (and not primarily in a service | ||||||
| 5 | occupation) notwithstanding the fact that such person designs | ||||||
| 6 | and produces such tangible personal property on special order | ||||||
| 7 | for the purchaser and in such a way as to render the property | ||||||
| 8 | of value only to such purchaser, if such tangible personal | ||||||
| 9 | property so produced on special order serves substantially the | ||||||
| 10 | same function as stock or standard items of tangible personal | ||||||
| 11 | property that are sold at retail. | ||||||
| 12 | Persons who engage in the business of transferring | ||||||
| 13 | tangible personal property upon the redemption of trading | ||||||
| 14 | stamps are engaged in the business of selling such property at | ||||||
| 15 | retail and shall be liable for and shall pay the tax imposed by | ||||||
| 16 | this Act on the basis of the retail value of the property | ||||||
| 17 | transferred upon redemption of such stamps. | ||||||
| 18 | "Bulk vending machine" means a vending machine, containing | ||||||
| 19 | unsorted confections, nuts, toys, or other items designed | ||||||
| 20 | primarily to be used or played with by children which, when a | ||||||
| 21 | coin or coins of a denomination not larger than $0.50 are | ||||||
| 22 | inserted, are dispensed in equal portions, at random and | ||||||
| 23 | without selection by the customer. | ||||||
| 24 | "Remote retailer" means a retailer that does not maintain | ||||||
| 25 | within this State, directly or by a subsidiary, an office, | ||||||
| 26 | distribution house, sales house, warehouse or other place of | ||||||
| |||||||
| |||||||
| 1 | business, or any agent or other representative operating | ||||||
| 2 | within this State under the authority of the retailer or its | ||||||
| 3 | subsidiary, irrespective of whether such place of business or | ||||||
| 4 | agent is located here permanently or temporarily or whether | ||||||
| 5 | such retailer or subsidiary is licensed to do business in this | ||||||
| 6 | State. | ||||||
| 7 | "Marketplace" means a physical or electronic place, forum, | ||||||
| 8 | platform, application, or other method by which a marketplace | ||||||
| 9 | seller sells or offers to sell items. | ||||||
| 10 | "Marketplace facilitator" means a person who, pursuant to | ||||||
| 11 | an agreement with an unrelated third-party marketplace seller, | ||||||
| 12 | directly or indirectly through one or more affiliates | ||||||
| 13 | facilitates a retail sale by an unrelated third party | ||||||
| 14 | marketplace seller by: | ||||||
| 15 | (1) listing or advertising for sale by the marketplace | ||||||
| 16 | seller in a marketplace, tangible personal property that | ||||||
| 17 | is subject to tax under this Act; and | ||||||
| 18 | (2) either directly or indirectly, through agreements | ||||||
| 19 | or arrangements with third parties, collecting payment | ||||||
| 20 | from the customer and transmitting that payment to the | ||||||
| 21 | marketplace seller regardless of whether the marketplace | ||||||
| 22 | facilitator receives compensation or other consideration | ||||||
| 23 | in exchange for its services. | ||||||
| 24 | A person who provides advertising services, including | ||||||
| 25 | listing products for sale, is not considered a marketplace | ||||||
| 26 | facilitator, so long as the advertising service platform or | ||||||
| |||||||
| |||||||
| 1 | forum does not engage, directly or indirectly through one or | ||||||
| 2 | more affiliated persons, in the activities described in | ||||||
| 3 | paragraph (2) of this definition of "marketplace facilitator". | ||||||
| 4 | "Marketplace facilitator" does not include any person | ||||||
| 5 | licensed under the Auction License Act. This exemption does | ||||||
| 6 | not apply to any person who is an Internet auction listing | ||||||
| 7 | service, as defined by the Auction License Act. | ||||||
| 8 | "Marketplace seller" means a person that makes sales | ||||||
| 9 | through a marketplace operated by an unrelated third party | ||||||
| 10 | marketplace facilitator. | ||||||
| 11 | (Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20; | ||||||
| 12 | 102-353, eff. 1-1-22; 102-634, eff. 8-27-21; 102-813, eff. | ||||||
| 13 | 5-13-22.)
| ||||||
| 14 | (35 ILCS 120/1.05 new) | ||||||
| 15 | Sec. 1.05. Legislative intent; leases. It is the intent of | ||||||
| 16 | the General Assembly in enacting this amendatory Act of the | ||||||
| 17 | 103rd General Assembly to apply the tax imposed under this | ||||||
| 18 | Act, except as otherwise provided in this Act, to persons | ||||||
| 19 | engaged in the business of leasing at retail tangible personal | ||||||
| 20 | property, other than motor vehicles, watercraft, aircraft, and | ||||||
| 21 | semitrailers, as defined in Section 1-187 of the Illinois | ||||||
| 22 | Vehicle Code, that are required to be registered with an | ||||||
| 23 | agency of this State, leased at retail from a retailer, for | ||||||
| 24 | leases in effect, entered into, or renewed on or after January | ||||||
| 25 | 1, 2025.
| ||||||
| |||||||
| |||||||
| 1 | (35 ILCS 120/2) (from Ch. 120, par. 441) | ||||||
| 2 | Sec. 2. Tax imposed. | ||||||
| 3 | (a) A tax is imposed upon persons engaged in the business | ||||||
| 4 | of selling at retail, which, on and after January 1, 2025, | ||||||
| 5 | includes leasing, tangible personal property, including | ||||||
| 6 | computer software, and including photographs, negatives, and | ||||||
| 7 | positives that are the product of photoprocessing, but not | ||||||
| 8 | including products of photoprocessing produced for use in | ||||||
| 9 | motion pictures for public commercial exhibition. Beginning | ||||||
| 10 | January 1, 2001, prepaid telephone calling arrangements shall | ||||||
| 11 | be considered tangible personal property subject to the tax | ||||||
| 12 | imposed under this Act regardless of the form in which those | ||||||
| 13 | arrangements may be embodied, transmitted, or fixed by any | ||||||
| 14 | method now known or hereafter developed. | ||||||
| 15 | The imposition of the tax under this Act on persons | ||||||
| 16 | engaged in the business of leasing tangible personal property | ||||||
| 17 | applies to leases in effect, entered into, or renewed on or | ||||||
| 18 | after January 1, 2025. In the case of leases, except as | ||||||
| 19 | otherwise provided in this Act, the lessor must remit, for | ||||||
| 20 | each tax return period, only the tax applicable to that part of | ||||||
| 21 | the selling price actually received during such tax return | ||||||
| 22 | period. | ||||||
| 23 | The inclusion of leases in the tax imposed under this Act | ||||||
| 24 | by this amendatory Act of the 103rd General Assembly does not, | ||||||
| 25 | however, extend to motor vehicles, watercraft, aircraft, and | ||||||
| |||||||
| |||||||
| 1 | semitrailers, as defined in Section 1-187 of the Illinois | ||||||
| 2 | Vehicle Code, that are required to be registered with an | ||||||
| 3 | agency of this State. The taxation of these items shall | ||||||
| 4 | continue in effect as prior to the effective date of the | ||||||
| 5 | changes made to this Section by this amendatory Act of the | ||||||
| 6 | 103rd General Assembly (i.e., dealers owe retailers' | ||||||
| 7 | occupation tax, lessors owe use tax, and lessees are not | ||||||
| 8 | subject to retailers' occupation or use tax). | ||||||
| 9 | Sales of (1) electricity delivered to customers by wire; | ||||||
| 10 | (2) natural or artificial gas that is delivered to customers | ||||||
| 11 | through pipes, pipelines, or mains; and (3) water that is | ||||||
| 12 | delivered to customers through pipes, pipelines, or mains are | ||||||
| 13 | not subject to tax under this Act. The provisions of this | ||||||
| 14 | amendatory Act of the 98th General Assembly are declaratory of | ||||||
| 15 | existing law as to the meaning and scope of this Act. | ||||||
| 16 | (b) Beginning on January 1, 2021, a remote retailer is | ||||||
| 17 | engaged in the occupation of selling at retail in Illinois for | ||||||
| 18 | purposes of this Act, if: | ||||||
| 19 | (1) the cumulative gross receipts from sales of | ||||||
| 20 | tangible personal property to purchasers in Illinois are | ||||||
| 21 | $100,000 or more; or | ||||||
| 22 | (2) the retailer enters into 200 or more separate | ||||||
| 23 | transactions for the sale of tangible personal property to | ||||||
| 24 | purchasers in Illinois. | ||||||
| 25 | Remote retailers that meet or exceed the threshold in | ||||||
| 26 | either paragraph (1) or (2) above shall be liable for all | ||||||
| |||||||
| |||||||
| 1 | applicable State retailers' and locally imposed retailers' | ||||||
| 2 | occupation taxes administered by the Department on all retail | ||||||
| 3 | sales to Illinois purchasers. | ||||||
| 4 | The remote retailer shall determine on a quarterly basis, | ||||||
| 5 | ending on the last day of March, June, September, and | ||||||
| 6 | December, whether he or she meets the criteria of either | ||||||
| 7 | paragraph (1) or (2) of this subsection for the preceding | ||||||
| 8 | 12-month period. If the retailer meets the criteria of either | ||||||
| 9 | paragraph (1) or (2) for a 12-month period, he or she is | ||||||
| 10 | considered a retailer maintaining a place of business in this | ||||||
| 11 | State and is required to collect and remit the tax imposed | ||||||
| 12 | under this Act and all retailers' occupation tax imposed by | ||||||
| 13 | local taxing jurisdictions in Illinois, provided such local | ||||||
| 14 | taxes are administered by the Department, and to file all | ||||||
| 15 | applicable returns for one year. At the end of that one-year | ||||||
| 16 | period, the retailer shall determine whether the retailer met | ||||||
| 17 | the criteria of either paragraph (1) or (2) for the preceding | ||||||
| 18 | 12-month period. If the retailer met the criteria in either | ||||||
| 19 | paragraph (1) or (2) for the preceding 12-month period, he or | ||||||
| 20 | she is considered a retailer maintaining a place of business | ||||||
| 21 | in this State and is required to collect and remit all | ||||||
| 22 | applicable State and local retailers' occupation taxes and | ||||||
| 23 | file returns for the subsequent year. If, at the end of a | ||||||
| 24 | one-year period, a retailer that was required to collect and | ||||||
| 25 | remit the tax imposed under this Act determines that he or she | ||||||
| 26 | did not meet the criteria in either paragraph (1) or (2) during | ||||||
| |||||||
| |||||||
| 1 | the preceding 12-month period, then the retailer shall | ||||||
| 2 | subsequently determine on a quarterly basis, ending on the | ||||||
| 3 | last day of March, June, September, and December, whether he | ||||||
| 4 | or she meets the criteria of either paragraph (1) or (2) for | ||||||
| 5 | the preceding 12-month period. | ||||||
| 6 | (b-5) For the purposes of this Section, neither the gross | ||||||
| 7 | receipts from nor the number of separate transactions for | ||||||
| 8 | sales of tangible personal property to purchasers in Illinois | ||||||
| 9 | that a remote retailer makes through a marketplace facilitator | ||||||
| 10 | shall be included for the purposes of determining whether he | ||||||
| 11 | or she has met the thresholds of subsection (b) of this Section | ||||||
| 12 | so long as the remote retailer has received certification from | ||||||
| 13 | the marketplace facilitator that the marketplace facilitator | ||||||
| 14 | is legally responsible for payment of tax on such sales. | ||||||
| 15 | (b-10) A remote retailer required to collect taxes imposed | ||||||
| 16 | under the Use Tax Act on retail sales made to Illinois | ||||||
| 17 | purchasers shall be liable to the Department for such taxes, | ||||||
| 18 | except when the remote retailer is relieved of the duty to | ||||||
| 19 | remit such taxes by virtue of having paid to the Department | ||||||
| 20 | taxes imposed by this Act in accordance with this Section upon | ||||||
| 21 | his or her gross receipts from such sales. | ||||||
| 22 | (c) Marketplace facilitators engaged in the business of | ||||||
| 23 | selling at retail tangible personal property in Illinois. | ||||||
| 24 | Beginning January 1, 2021, a marketplace facilitator is | ||||||
| 25 | engaged in the occupation of selling at retail tangible | ||||||
| 26 | personal property in Illinois for purposes of this Act if, | ||||||
| |||||||
| |||||||
| 1 | during the previous 12-month period: | ||||||
| 2 | (1) the cumulative gross receipts from sales of | ||||||
| 3 | tangible personal property on its own behalf or on behalf | ||||||
| 4 | of marketplace sellers to purchasers in Illinois equals | ||||||
| 5 | $100,000 or more; or | ||||||
| 6 | (2) the marketplace facilitator enters into 200 or | ||||||
| 7 | more separate transactions on its own behalf or on behalf | ||||||
| 8 | of marketplace sellers for the sale of tangible personal | ||||||
| 9 | property to purchasers in Illinois, regardless of whether | ||||||
| 10 | the marketplace facilitator or marketplace sellers for | ||||||
| 11 | whom such sales are facilitated are registered as | ||||||
| 12 | retailers in this State. | ||||||
| 13 | A marketplace facilitator who meets either paragraph (1) | ||||||
| 14 | or (2) of this subsection is required to remit the applicable | ||||||
| 15 | State retailers' occupation taxes under this Act and local | ||||||
| 16 | retailers' occupation taxes administered by the Department on | ||||||
| 17 | all taxable sales of tangible personal property made by the | ||||||
| 18 | marketplace facilitator or facilitated for marketplace sellers | ||||||
| 19 | to customers in this State. A marketplace facilitator selling | ||||||
| 20 | or facilitating the sale of tangible personal property to | ||||||
| 21 | customers in this State is subject to all applicable | ||||||
| 22 | procedures and requirements of this Act. | ||||||
| 23 | The marketplace facilitator shall determine on a quarterly | ||||||
| 24 | basis, ending on the last day of March, June, September, and | ||||||
| 25 | December, whether he or she meets the criteria of either | ||||||
| 26 | paragraph (1) or (2) of this subsection for the preceding | ||||||
| |||||||
| |||||||
| 1 | 12-month period. If the marketplace facilitator meets the | ||||||
| 2 | criteria of either paragraph (1) or (2) for a 12-month period, | ||||||
| 3 | he or she is considered a retailer maintaining a place of | ||||||
| 4 | business in this State and is required to remit the tax imposed | ||||||
| 5 | under this Act and all retailers' occupation tax imposed by | ||||||
| 6 | local taxing jurisdictions in Illinois, provided such local | ||||||
| 7 | taxes are administered by the Department, and to file all | ||||||
| 8 | applicable returns for one year. At the end of that one-year | ||||||
| 9 | period, the marketplace facilitator shall determine whether it | ||||||
| 10 | met the criteria of either paragraph (1) or (2) for the | ||||||
| 11 | preceding 12-month period. If the marketplace facilitator met | ||||||
| 12 | the criteria in either paragraph (1) or (2) for the preceding | ||||||
| 13 | 12-month period, it is considered a retailer maintaining a | ||||||
| 14 | place of business in this State and is required to collect and | ||||||
| 15 | remit all applicable State and local retailers' occupation | ||||||
| 16 | taxes and file returns for the subsequent year. If at the end | ||||||
| 17 | of a one-year period a marketplace facilitator that was | ||||||
| 18 | required to collect and remit the tax imposed under this Act | ||||||
| 19 | determines that he or she did not meet the criteria in either | ||||||
| 20 | paragraph (1) or (2) during the preceding 12-month period, the | ||||||
| 21 | marketplace facilitator shall subsequently determine on a | ||||||
| 22 | quarterly basis, ending on the last day of March, June, | ||||||
| 23 | September, and December, whether he or she meets the criteria | ||||||
| 24 | of either paragraph (1) or (2) for the preceding 12-month | ||||||
| 25 | period. | ||||||
| 26 | A marketplace facilitator shall be entitled to any | ||||||
| |||||||
| |||||||
| 1 | credits, deductions, or adjustments to the sales price | ||||||
| 2 | otherwise provided to the marketplace seller, in addition to | ||||||
| 3 | any such adjustments provided directly to the marketplace | ||||||
| 4 | facilitator. This Section pertains to, but is not limited to, | ||||||
| 5 | adjustments such as discounts, coupons, and rebates. In | ||||||
| 6 | addition, a marketplace facilitator shall be entitled to the | ||||||
| 7 | retailers' discount provided in Section 3 of the Retailers' | ||||||
| 8 | Occupation Tax Act on all marketplace sales, and the | ||||||
| 9 | marketplace seller shall not include sales made through a | ||||||
| 10 | marketplace facilitator when computing any retailers' discount | ||||||
| 11 | on remaining sales. Marketplace facilitators shall report and | ||||||
| 12 | remit the applicable State and local retailers' occupation | ||||||
| 13 | taxes on sales facilitated for marketplace sellers separately | ||||||
| 14 | from any sales or use tax collected on taxable retail sales | ||||||
| 15 | made directly by the marketplace facilitator or its | ||||||
| 16 | affiliates. | ||||||
| 17 | The marketplace facilitator is liable for the remittance | ||||||
| 18 | of all applicable State retailers' occupation taxes under this | ||||||
| 19 | Act and local retailers' occupation taxes administered by the | ||||||
| 20 | Department on sales through the marketplace and is subject to | ||||||
| 21 | audit on all such sales. The Department shall not audit | ||||||
| 22 | marketplace sellers for their marketplace sales where a | ||||||
| 23 | marketplace facilitator remitted the applicable State and | ||||||
| 24 | local retailers' occupation taxes unless the marketplace | ||||||
| 25 | facilitator seeks relief as a result of incorrect information | ||||||
| 26 | provided to the marketplace facilitator by a marketplace | ||||||
| |||||||
| |||||||
| 1 | seller as set forth in this Section. The marketplace | ||||||
| 2 | facilitator shall not be held liable for tax on any sales made | ||||||
| 3 | by a marketplace seller that take place outside of the | ||||||
| 4 | marketplace and which are not a part of any agreement between a | ||||||
| 5 | marketplace facilitator and a marketplace seller. In addition, | ||||||
| 6 | marketplace facilitators shall not be held liable to State and | ||||||
| 7 | local governments of Illinois for having charged and remitted | ||||||
| 8 | an incorrect amount of State and local retailers' occupation | ||||||
| 9 | tax if, at the time of the sale, the tax is computed based on | ||||||
| 10 | erroneous data provided by the State in database files on tax | ||||||
| 11 | rates, boundaries, or taxing jurisdictions or incorrect | ||||||
| 12 | information provided to the marketplace facilitator by the | ||||||
| 13 | marketplace seller. | ||||||
| 14 | (d) A marketplace facilitator shall: | ||||||
| 15 | (1) certify to each marketplace seller that the | ||||||
| 16 | marketplace facilitator assumes the rights and duties of a | ||||||
| 17 | retailer under this Act with respect to sales made by the | ||||||
| 18 | marketplace seller through the marketplace; and | ||||||
| 19 | (2) remit taxes imposed by this Act as required by | ||||||
| 20 | this Act for sales made through the marketplace. | ||||||
| 21 | (e) A marketplace seller shall retain books and records | ||||||
| 22 | for all sales made through a marketplace in accordance with | ||||||
| 23 | the requirements of this Act. | ||||||
| 24 | (f) A marketplace facilitator is subject to audit on all | ||||||
| 25 | marketplace sales for which it is considered to be the | ||||||
| 26 | retailer, but shall not be liable for tax or subject to audit | ||||||
| |||||||
| |||||||
| 1 | on sales made by marketplace sellers outside of the | ||||||
| 2 | marketplace. | ||||||
| 3 | (g) A marketplace facilitator required to collect taxes | ||||||
| 4 | imposed under the Use Tax Act on marketplace sales made to | ||||||
| 5 | Illinois purchasers shall be liable to the Department for such | ||||||
| 6 | taxes, except when the marketplace facilitator is relieved of | ||||||
| 7 | the duty to remit such taxes by virtue of having paid to the | ||||||
| 8 | Department taxes imposed by this Act in accordance with this | ||||||
| 9 | Section upon his or her gross receipts from such sales. | ||||||
| 10 | (h) Nothing in this Section shall allow the Department to | ||||||
| 11 | collect retailers' occupation taxes from both the marketplace | ||||||
| 12 | facilitator and marketplace seller on the same transaction. | ||||||
| 13 | (i) If, for any reason, the Department is prohibited from | ||||||
| 14 | enforcing the marketplace facilitator's duty under this Act to | ||||||
| 15 | remit taxes pursuant to this Section, the duty to remit such | ||||||
| 16 | taxes remains with the marketplace seller. | ||||||
| 17 | (j) Nothing in this Section affects the obligation of any | ||||||
| 18 | consumer to remit use tax for any taxable transaction for | ||||||
| 19 | which a certified service provider acting on behalf of a | ||||||
| 20 | remote retailer or a marketplace facilitator does not collect | ||||||
| 21 | and remit the appropriate tax. | ||||||
| 22 | (k) Nothing in this Section shall allow the Department to | ||||||
| 23 | collect the retailers' occupation tax from both the | ||||||
| 24 | marketplace facilitator and the marketplace seller. | ||||||
| 25 | (Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
| ||||||
| |||||||
| |||||||
| 1 | (35 ILCS 120/2-5) | ||||||
| 2 | Sec. 2-5. Exemptions. Gross receipts from proceeds from | ||||||
| 3 | the sale, which, on and after January 1, 2025, includes the | ||||||
| 4 | lease, of the following tangible personal property are exempt | ||||||
| 5 | from the tax imposed by this Act: | ||||||
| 6 | (1) Farm chemicals. | ||||||
| 7 | (2) Farm machinery and equipment, both new and used, | ||||||
| 8 | including that manufactured on special order, certified by | ||||||
| 9 | the purchaser to be used primarily for production | ||||||
| 10 | agriculture or State or federal agricultural programs, | ||||||
| 11 | including individual replacement parts for the machinery | ||||||
| 12 | and equipment, including machinery and equipment purchased | ||||||
| 13 | for lease, and including implements of husbandry defined | ||||||
| 14 | in Section 1-130 of the Illinois Vehicle Code, farm | ||||||
| 15 | machinery and agricultural chemical and fertilizer | ||||||
| 16 | spreaders, and nurse wagons required to be registered | ||||||
| 17 | under Section 3-809 of the Illinois Vehicle Code, but | ||||||
| 18 | excluding other motor vehicles required to be registered | ||||||
| 19 | under the Illinois Vehicle Code. Horticultural polyhouses | ||||||
| 20 | or hoop houses used for propagating, growing, or | ||||||
| 21 | overwintering plants shall be considered farm machinery | ||||||
| 22 | and equipment under this item (2). Agricultural chemical | ||||||
| 23 | tender tanks and dry boxes shall include units sold | ||||||
| 24 | separately from a motor vehicle required to be licensed | ||||||
| 25 | and units sold mounted on a motor vehicle required to be | ||||||
| 26 | licensed, if the selling price of the tender is separately | ||||||
| |||||||
| |||||||
| 1 | stated. | ||||||
| 2 | Farm machinery and equipment shall include precision | ||||||
| 3 | farming equipment that is installed or purchased to be | ||||||
| 4 | installed on farm machinery and equipment including, but | ||||||
| 5 | not limited to, tractors, harvesters, sprayers, planters, | ||||||
| 6 | seeders, or spreaders. Precision farming equipment | ||||||
| 7 | includes, but is not limited to, soil testing sensors, | ||||||
| 8 | computers, monitors, software, global positioning and | ||||||
| 9 | mapping systems, and other such equipment. | ||||||
| 10 | Farm machinery and equipment also includes computers, | ||||||
| 11 | sensors, software, and related equipment used primarily in | ||||||
| 12 | the computer-assisted operation of production agriculture | ||||||
| 13 | facilities, equipment, and activities such as, but not | ||||||
| 14 | limited to, the collection, monitoring, and correlation of | ||||||
| 15 | animal and crop data for the purpose of formulating animal | ||||||
| 16 | diets and agricultural chemicals. | ||||||
| 17 | Beginning on January 1, 2024, farm machinery and | ||||||
| 18 | equipment also includes electrical power generation | ||||||
| 19 | equipment used primarily for production agriculture. | ||||||
| 20 | This item (2) is exempt from the provisions of Section | ||||||
| 21 | 2-70. | ||||||
| 22 | (3) Until July 1, 2003, distillation machinery and | ||||||
| 23 | equipment, sold as a unit or kit, assembled or installed | ||||||
| 24 | by the retailer, certified by the user to be used only for | ||||||
| 25 | the production of ethyl alcohol that will be used for | ||||||
| 26 | consumption as motor fuel or as a component of motor fuel | ||||||
| |||||||
| |||||||
| 1 | for the personal use of the user, and not subject to sale | ||||||
| 2 | or resale. | ||||||
| 3 | (4) Until July 1, 2003 and beginning again September | ||||||
| 4 | 1, 2004 through August 30, 2014, graphic arts machinery | ||||||
| 5 | and equipment, including repair and replacement parts, | ||||||
| 6 | both new and used, and including that manufactured on | ||||||
| 7 | special order or purchased for lease, certified by the | ||||||
| 8 | purchaser to be used primarily for graphic arts | ||||||
| 9 | production. Equipment includes chemicals or chemicals | ||||||
| 10 | acting as catalysts but only if the chemicals or chemicals | ||||||
| 11 | acting as catalysts effect a direct and immediate change | ||||||
| 12 | upon a graphic arts product. Beginning on July 1, 2017, | ||||||
| 13 | graphic arts machinery and equipment is included in the | ||||||
| 14 | manufacturing and assembling machinery and equipment | ||||||
| 15 | exemption under paragraph (14). | ||||||
| 16 | (5) A motor vehicle that is used for automobile | ||||||
| 17 | renting, as defined in the Automobile Renting Occupation | ||||||
| 18 | and Use Tax Act. This paragraph is exempt from the | ||||||
| 19 | provisions of Section 2-70. | ||||||
| 20 | (6) Personal property sold by a teacher-sponsored | ||||||
| 21 | student organization affiliated with an elementary or | ||||||
| 22 | secondary school located in Illinois. | ||||||
| 23 | (7) Until July 1, 2003, proceeds of that portion of | ||||||
| 24 | the selling price of a passenger car the sale of which is | ||||||
| 25 | subject to the Replacement Vehicle Tax. | ||||||
| 26 | (8) Personal property sold to an Illinois county fair | ||||||
| |||||||
| |||||||
| 1 | association for use in conducting, operating, or promoting | ||||||
| 2 | the county fair. | ||||||
| 3 | (9) Personal property sold to a not-for-profit arts or | ||||||
| 4 | cultural organization that establishes, by proof required | ||||||
| 5 | by the Department by rule, that it has received an | ||||||
| 6 | exemption under Section 501(c)(3) of the Internal Revenue | ||||||
| 7 | Code and that is organized and operated primarily for the | ||||||
| 8 | presentation or support of arts or cultural programming, | ||||||
| 9 | activities, or services. These organizations include, but | ||||||
| 10 | are not limited to, music and dramatic arts organizations | ||||||
| 11 | such as symphony orchestras and theatrical groups, arts | ||||||
| 12 | and cultural service organizations, local arts councils, | ||||||
| 13 | visual arts organizations, and media arts organizations. | ||||||
| 14 | On and after July 1, 2001 (the effective date of Public Act | ||||||
| 15 | 92-35), however, an entity otherwise eligible for this | ||||||
| 16 | exemption shall not make tax-free purchases unless it has | ||||||
| 17 | an active identification number issued by the Department. | ||||||
| 18 | (10) Personal property sold by a corporation, society, | ||||||
| 19 | association, foundation, institution, or organization, | ||||||
| 20 | other than a limited liability company, that is organized | ||||||
| 21 | and operated as a not-for-profit service enterprise for | ||||||
| 22 | the benefit of persons 65 years of age or older if the | ||||||
| 23 | personal property was not purchased by the enterprise for | ||||||
| 24 | the purpose of resale by the enterprise. | ||||||
| 25 | (11) Except as otherwise provided in this Section, | ||||||
| 26 | personal property sold to a governmental body, to a | ||||||
| |||||||
| |||||||
| 1 | corporation, society, association, foundation, or | ||||||
| 2 | institution organized and operated exclusively for | ||||||
| 3 | charitable, religious, or educational purposes, or to a | ||||||
| 4 | not-for-profit corporation, society, association, | ||||||
| 5 | foundation, institution, or organization that has no | ||||||
| 6 | compensated officers or employees and that is organized | ||||||
| 7 | and operated primarily for the recreation of persons 55 | ||||||
| 8 | years of age or older. A limited liability company may | ||||||
| 9 | qualify for the exemption under this paragraph only if the | ||||||
| 10 | limited liability company is organized and operated | ||||||
| 11 | exclusively for educational purposes. On and after July 1, | ||||||
| 12 | 1987, however, no entity otherwise eligible for this | ||||||
| 13 | exemption shall make tax-free purchases unless it has an | ||||||
| 14 | active identification number issued by the Department. | ||||||
| 15 | (12) (Blank). | ||||||
| 16 | (12-5) On and after July 1, 2003 and through June 30, | ||||||
| 17 | 2004, motor vehicles of the second division with a gross | ||||||
| 18 | vehicle weight in excess of 8,000 pounds that are subject | ||||||
| 19 | to the commercial distribution fee imposed under Section | ||||||
| 20 | 3-815.1 of the Illinois Vehicle Code. Beginning on July 1, | ||||||
| 21 | 2004 and through June 30, 2005, the use in this State of | ||||||
| 22 | motor vehicles of the second division: (i) with a gross | ||||||
| 23 | vehicle weight rating in excess of 8,000 pounds; (ii) that | ||||||
| 24 | are subject to the commercial distribution fee imposed | ||||||
| 25 | under Section 3-815.1 of the Illinois Vehicle Code; and | ||||||
| 26 | (iii) that are primarily used for commercial purposes. | ||||||
| |||||||
| |||||||
| 1 | Through June 30, 2005, this exemption applies to repair | ||||||
| 2 | and replacement parts added after the initial purchase of | ||||||
| 3 | such a motor vehicle if that motor vehicle is used in a | ||||||
| 4 | manner that would qualify for the rolling stock exemption | ||||||
| 5 | otherwise provided for in this Act. For purposes of this | ||||||
| 6 | paragraph, "used for commercial purposes" means the | ||||||
| 7 | transportation of persons or property in furtherance of | ||||||
| 8 | any commercial or industrial enterprise whether for-hire | ||||||
| 9 | or not. | ||||||
| 10 | (13) Proceeds from sales to owners or , lessors, | ||||||
| 11 | lessees, or shippers of tangible personal property that is | ||||||
| 12 | utilized by interstate carriers for hire for use as | ||||||
| 13 | rolling stock moving in interstate commerce and equipment | ||||||
| 14 | operated by a telecommunications provider, licensed as a | ||||||
| 15 | common carrier by the Federal Communications Commission, | ||||||
| 16 | which is permanently installed in or affixed to aircraft | ||||||
| 17 | moving in interstate commerce. | ||||||
| 18 | (14) Machinery and equipment that will be used by the | ||||||
| 19 | purchaser, or a lessee of the purchaser, primarily in the | ||||||
| 20 | process of manufacturing or assembling tangible personal | ||||||
| 21 | property for wholesale or retail sale or lease, whether | ||||||
| 22 | the sale or lease is made directly by the manufacturer or | ||||||
| 23 | by some other person, whether the materials used in the | ||||||
| 24 | process are owned by the manufacturer or some other | ||||||
| 25 | person, or whether the sale or lease is made apart from or | ||||||
| 26 | as an incident to the seller's engaging in the service | ||||||
| |||||||
| |||||||
| 1 | occupation of producing machines, tools, dies, jigs, | ||||||
| 2 | patterns, gauges, or other similar items of no commercial | ||||||
| 3 | value on special order for a particular purchaser. The | ||||||
| 4 | exemption provided by this paragraph (14) does not include | ||||||
| 5 | machinery and equipment used in (i) the generation of | ||||||
| 6 | electricity for wholesale or retail sale; (ii) the | ||||||
| 7 | generation or treatment of natural or artificial gas for | ||||||
| 8 | wholesale or retail sale that is delivered to customers | ||||||
| 9 | through pipes, pipelines, or mains; or (iii) the treatment | ||||||
| 10 | of water for wholesale or retail sale that is delivered to | ||||||
| 11 | customers through pipes, pipelines, or mains. The | ||||||
| 12 | provisions of Public Act 98-583 are declaratory of | ||||||
| 13 | existing law as to the meaning and scope of this | ||||||
| 14 | exemption. Beginning on July 1, 2017, the exemption | ||||||
| 15 | provided by this paragraph (14) includes, but is not | ||||||
| 16 | limited to, graphic arts machinery and equipment, as | ||||||
| 17 | defined in paragraph (4) of this Section. | ||||||
| 18 | (15) Proceeds of mandatory service charges separately | ||||||
| 19 | stated on customers' bills for purchase and consumption of | ||||||
| 20 | food and beverages, to the extent that the proceeds of the | ||||||
| 21 | service charge are in fact turned over as tips or as a | ||||||
| 22 | substitute for tips to the employees who participate | ||||||
| 23 | directly in preparing, serving, hosting or cleaning up the | ||||||
| 24 | food or beverage function with respect to which the | ||||||
| 25 | service charge is imposed. | ||||||
| 26 | (16) Tangible personal property sold to a purchaser if | ||||||
| |||||||
| |||||||
| 1 | the purchaser is exempt from use tax by operation of | ||||||
| 2 | federal law. This paragraph is exempt from the provisions | ||||||
| 3 | of Section 2-70. | ||||||
| 4 | (17) Tangible personal property sold to a common | ||||||
| 5 | carrier by rail or motor that receives the physical | ||||||
| 6 | possession of the property in Illinois and that transports | ||||||
| 7 | the property, or shares with another common carrier in the | ||||||
| 8 | transportation of the property, out of Illinois on a | ||||||
| 9 | standard uniform bill of lading showing the seller of the | ||||||
| 10 | property as the shipper or consignor of the property to a | ||||||
| 11 | destination outside Illinois, for use outside Illinois. | ||||||
| 12 | (18) Legal tender, currency, medallions, or gold or | ||||||
| 13 | silver coinage issued by the State of Illinois, the | ||||||
| 14 | government of the United States of America, or the | ||||||
| 15 | government of any foreign country, and bullion. | ||||||
| 16 | (19) Until July 1, 2003, oil field exploration, | ||||||
| 17 | drilling, and production equipment, including (i) rigs and | ||||||
| 18 | parts of rigs, rotary rigs, cable tool rigs, and workover | ||||||
| 19 | rigs, (ii) pipe and tubular goods, including casing and | ||||||
| 20 | drill strings, (iii) pumps and pump-jack units, (iv) | ||||||
| 21 | storage tanks and flow lines, (v) any individual | ||||||
| 22 | replacement part for oil field exploration, drilling, and | ||||||
| 23 | production equipment, and (vi) machinery and equipment | ||||||
| 24 | purchased for lease; but excluding motor vehicles required | ||||||
| 25 | to be registered under the Illinois Vehicle Code. | ||||||
| 26 | (20) Photoprocessing machinery and equipment, | ||||||
| |||||||
| |||||||
| 1 | including repair and replacement parts, both new and used, | ||||||
| 2 | including that manufactured on special order, certified by | ||||||
| 3 | the purchaser to be used primarily for photoprocessing, | ||||||
| 4 | and including photoprocessing machinery and equipment | ||||||
| 5 | purchased for lease. | ||||||
| 6 | (21) Until July 1, 2028, coal and aggregate | ||||||
| 7 | exploration, mining, off-highway hauling, processing, | ||||||
| 8 | maintenance, and reclamation equipment, including | ||||||
| 9 | replacement parts and equipment, and including equipment | ||||||
| 10 | purchased for lease, but excluding motor vehicles required | ||||||
| 11 | to be registered under the Illinois Vehicle Code. The | ||||||
| 12 | changes made to this Section by Public Act 97-767 apply on | ||||||
| 13 | and after July 1, 2003, but no claim for credit or refund | ||||||
| 14 | is allowed on or after August 16, 2013 (the effective date | ||||||
| 15 | of Public Act 98-456) for such taxes paid during the | ||||||
| 16 | period beginning July 1, 2003 and ending on August 16, | ||||||
| 17 | 2013 (the effective date of Public Act 98-456). | ||||||
| 18 | (22) Until June 30, 2013, fuel and petroleum products | ||||||
| 19 | sold to or used by an air carrier, certified by the carrier | ||||||
| 20 | to be used for consumption, shipment, or storage in the | ||||||
| 21 | conduct of its business as an air common carrier, for a | ||||||
| 22 | flight destined for or returning from a location or | ||||||
| 23 | locations outside the United States without regard to | ||||||
| 24 | previous or subsequent domestic stopovers. | ||||||
| 25 | Beginning July 1, 2013, fuel and petroleum products | ||||||
| 26 | sold to or used by an air carrier, certified by the carrier | ||||||
| |||||||
| |||||||
| 1 | to be used for consumption, shipment, or storage in the | ||||||
| 2 | conduct of its business as an air common carrier, for a | ||||||
| 3 | flight that (i) is engaged in foreign trade or is engaged | ||||||
| 4 | in trade between the United States and any of its | ||||||
| 5 | possessions and (ii) transports at least one individual or | ||||||
| 6 | package for hire from the city of origination to the city | ||||||
| 7 | of final destination on the same aircraft, without regard | ||||||
| 8 | to a change in the flight number of that aircraft. | ||||||
| 9 | (23) A transaction in which the purchase order is | ||||||
| 10 | received by a florist who is located outside Illinois, but | ||||||
| 11 | who has a florist located in Illinois deliver the property | ||||||
| 12 | to the purchaser or the purchaser's donee in Illinois. | ||||||
| 13 | (24) Fuel consumed or used in the operation of ships, | ||||||
| 14 | barges, or vessels that are used primarily in or for the | ||||||
| 15 | transportation of property or the conveyance of persons | ||||||
| 16 | for hire on rivers bordering on this State if the fuel is | ||||||
| 17 | delivered by the seller to the purchaser's barge, ship, or | ||||||
| 18 | vessel while it is afloat upon that bordering river. | ||||||
| 19 | (25) Except as provided in item (25-5) of this | ||||||
| 20 | Section, a motor vehicle sold in this State to a | ||||||
| 21 | nonresident even though the motor vehicle is delivered to | ||||||
| 22 | the nonresident in this State, if the motor vehicle is not | ||||||
| 23 | to be titled in this State, and if a drive-away permit is | ||||||
| 24 | issued to the motor vehicle as provided in Section 3-603 | ||||||
| 25 | of the Illinois Vehicle Code or if the nonresident | ||||||
| 26 | purchaser has vehicle registration plates to transfer to | ||||||
| |||||||
| |||||||
| 1 | the motor vehicle upon returning to his or her home state. | ||||||
| 2 | The issuance of the drive-away permit or having the | ||||||
| 3 | out-of-state registration plates to be transferred is | ||||||
| 4 | prima facie evidence that the motor vehicle will not be | ||||||
| 5 | titled in this State. | ||||||
| 6 | (25-5) The exemption under item (25) does not apply if | ||||||
| 7 | the state in which the motor vehicle will be titled does | ||||||
| 8 | not allow a reciprocal exemption for a motor vehicle sold | ||||||
| 9 | and delivered in that state to an Illinois resident but | ||||||
| 10 | titled in Illinois. The tax collected under this Act on | ||||||
| 11 | the sale of a motor vehicle in this State to a resident of | ||||||
| 12 | another state that does not allow a reciprocal exemption | ||||||
| 13 | shall be imposed at a rate equal to the state's rate of tax | ||||||
| 14 | on taxable property in the state in which the purchaser is | ||||||
| 15 | a resident, except that the tax shall not exceed the tax | ||||||
| 16 | that would otherwise be imposed under this Act. At the | ||||||
| 17 | time of the sale, the purchaser shall execute a statement, | ||||||
| 18 | signed under penalty of perjury, of his or her intent to | ||||||
| 19 | title the vehicle in the state in which the purchaser is a | ||||||
| 20 | resident within 30 days after the sale and of the fact of | ||||||
| 21 | the payment to the State of Illinois of tax in an amount | ||||||
| 22 | equivalent to the state's rate of tax on taxable property | ||||||
| 23 | in his or her state of residence and shall submit the | ||||||
| 24 | statement to the appropriate tax collection agency in his | ||||||
| 25 | or her state of residence. In addition, the retailer must | ||||||
| 26 | retain a signed copy of the statement in his or her | ||||||
| |||||||
| |||||||
| 1 | records. Nothing in this item shall be construed to | ||||||
| 2 | require the removal of the vehicle from this state | ||||||
| 3 | following the filing of an intent to title the vehicle in | ||||||
| 4 | the purchaser's state of residence if the purchaser titles | ||||||
| 5 | the vehicle in his or her state of residence within 30 days | ||||||
| 6 | after the date of sale. The tax collected under this Act in | ||||||
| 7 | accordance with this item (25-5) shall be proportionately | ||||||
| 8 | distributed as if the tax were collected at the 6.25% | ||||||
| 9 | general rate imposed under this Act. | ||||||
| 10 | (25-7) Beginning on July 1, 2007, no tax is imposed | ||||||
| 11 | under this Act on the sale of an aircraft, as defined in | ||||||
| 12 | Section 3 of the Illinois Aeronautics Act, if all of the | ||||||
| 13 | following conditions are met: | ||||||
| 14 | (1) the aircraft leaves this State within 15 days | ||||||
| 15 | after the later of either the issuance of the final | ||||||
| 16 | billing for the sale of the aircraft, or the | ||||||
| 17 | authorized approval for return to service, completion | ||||||
| 18 | of the maintenance record entry, and completion of the | ||||||
| 19 | test flight and ground test for inspection, as | ||||||
| 20 | required by 14 CFR 91.407; | ||||||
| 21 | (2) the aircraft is not based or registered in | ||||||
| 22 | this State after the sale of the aircraft; and | ||||||
| 23 | (3) the seller retains in his or her books and | ||||||
| 24 | records and provides to the Department a signed and | ||||||
| 25 | dated certification from the purchaser, on a form | ||||||
| 26 | prescribed by the Department, certifying that the | ||||||
| |||||||
| |||||||
| 1 | requirements of this item (25-7) are met. The | ||||||
| 2 | certificate must also include the name and address of | ||||||
| 3 | the purchaser, the address of the location where the | ||||||
| 4 | aircraft is to be titled or registered, the address of | ||||||
| 5 | the primary physical location of the aircraft, and | ||||||
| 6 | other information that the Department may reasonably | ||||||
| 7 | require. | ||||||
| 8 | For purposes of this item (25-7): | ||||||
| 9 | "Based in this State" means hangared, stored, or | ||||||
| 10 | otherwise used, excluding post-sale customizations as | ||||||
| 11 | defined in this Section, for 10 or more days in each | ||||||
| 12 | 12-month period immediately following the date of the sale | ||||||
| 13 | of the aircraft. | ||||||
| 14 | "Registered in this State" means an aircraft | ||||||
| 15 | registered with the Department of Transportation, | ||||||
| 16 | Aeronautics Division, or titled or registered with the | ||||||
| 17 | Federal Aviation Administration to an address located in | ||||||
| 18 | this State. | ||||||
| 19 | This paragraph (25-7) is exempt from the provisions of | ||||||
| 20 | Section 2-70. | ||||||
| 21 | (26) Semen used for artificial insemination of | ||||||
| 22 | livestock for direct agricultural production. | ||||||
| 23 | (27) Horses, or interests in horses, registered with | ||||||
| 24 | and meeting the requirements of any of the Arabian Horse | ||||||
| 25 | Club Registry of America, Appaloosa Horse Club, American | ||||||
| 26 | Quarter Horse Association, United States Trotting | ||||||
| |||||||
| |||||||
| 1 | Association, or Jockey Club, as appropriate, used for | ||||||
| 2 | purposes of breeding or racing for prizes. This item (27) | ||||||
| 3 | is exempt from the provisions of Section 2-70, and the | ||||||
| 4 | exemption provided for under this item (27) applies for | ||||||
| 5 | all periods beginning May 30, 1995, but no claim for | ||||||
| 6 | credit or refund is allowed on or after January 1, 2008 | ||||||
| 7 | (the effective date of Public Act 95-88) for such taxes | ||||||
| 8 | paid during the period beginning May 30, 2000 and ending | ||||||
| 9 | on January 1, 2008 (the effective date of Public Act | ||||||
| 10 | 95-88). | ||||||
| 11 | (28) Computers and communications equipment utilized | ||||||
| 12 | for any hospital purpose and equipment used in the | ||||||
| 13 | diagnosis, analysis, or treatment of hospital patients | ||||||
| 14 | sold to a lessor who leases the equipment, under a lease of | ||||||
| 15 | one year or longer executed or in effect at the time of the | ||||||
| 16 | purchase, to a hospital that has been issued an active tax | ||||||
| 17 | exemption identification number by the Department under | ||||||
| 18 | Section 1g of this Act. | ||||||
| 19 | (29) Personal property sold to a lessor who leases the | ||||||
| 20 | property, under a lease of one year or longer executed or | ||||||
| 21 | in effect at the time of the purchase, to a governmental | ||||||
| 22 | body that has been issued an active tax exemption | ||||||
| 23 | identification number by the Department under Section 1g | ||||||
| 24 | of this Act. | ||||||
| 25 | (30) Beginning with taxable years ending on or after | ||||||
| 26 | December 31, 1995 and ending with taxable years ending on | ||||||
| |||||||
| |||||||
| 1 | or before December 31, 2004, personal property that is | ||||||
| 2 | donated for disaster relief to be used in a State or | ||||||
| 3 | federally declared disaster area in Illinois or bordering | ||||||
| 4 | Illinois by a manufacturer or retailer that is registered | ||||||
| 5 | in this State to a corporation, society, association, | ||||||
| 6 | foundation, or institution that has been issued a sales | ||||||
| 7 | tax exemption identification number by the Department that | ||||||
| 8 | assists victims of the disaster who reside within the | ||||||
| 9 | declared disaster area. | ||||||
| 10 | (31) Beginning with taxable years ending on or after | ||||||
| 11 | December 31, 1995 and ending with taxable years ending on | ||||||
| 12 | or before December 31, 2004, personal property that is | ||||||
| 13 | used in the performance of infrastructure repairs in this | ||||||
| 14 | State, including, but not limited to, municipal roads and | ||||||
| 15 | streets, access roads, bridges, sidewalks, waste disposal | ||||||
| 16 | systems, water and sewer line extensions, water | ||||||
| 17 | distribution and purification facilities, storm water | ||||||
| 18 | drainage and retention facilities, and sewage treatment | ||||||
| 19 | facilities, resulting from a State or federally declared | ||||||
| 20 | disaster in Illinois or bordering Illinois when such | ||||||
| 21 | repairs are initiated on facilities located in the | ||||||
| 22 | declared disaster area within 6 months after the disaster. | ||||||
| 23 | (32) Beginning July 1, 1999, game or game birds sold | ||||||
| 24 | at a "game breeding and hunting preserve area" as that | ||||||
| 25 | term is used in the Wildlife Code. This paragraph is | ||||||
| 26 | exempt from the provisions of Section 2-70. | ||||||
| |||||||
| |||||||
| 1 | (33) A motor vehicle, as that term is defined in | ||||||
| 2 | Section 1-146 of the Illinois Vehicle Code, that is | ||||||
| 3 | donated to a corporation, limited liability company, | ||||||
| 4 | society, association, foundation, or institution that is | ||||||
| 5 | determined by the Department to be organized and operated | ||||||
| 6 | exclusively for educational purposes. For purposes of this | ||||||
| 7 | exemption, "a corporation, limited liability company, | ||||||
| 8 | society, association, foundation, or institution organized | ||||||
| 9 | and operated exclusively for educational purposes" means | ||||||
| 10 | all tax-supported public schools, private schools that | ||||||
| 11 | offer systematic instruction in useful branches of | ||||||
| 12 | learning by methods common to public schools and that | ||||||
| 13 | compare favorably in their scope and intensity with the | ||||||
| 14 | course of study presented in tax-supported schools, and | ||||||
| 15 | vocational or technical schools or institutes organized | ||||||
| 16 | and operated exclusively to provide a course of study of | ||||||
| 17 | not less than 6 weeks duration and designed to prepare | ||||||
| 18 | individuals to follow a trade or to pursue a manual, | ||||||
| 19 | technical, mechanical, industrial, business, or commercial | ||||||
| 20 | occupation. | ||||||
| 21 | (34) Beginning January 1, 2000, personal property, | ||||||
| 22 | including food, purchased through fundraising events for | ||||||
| 23 | the benefit of a public or private elementary or secondary | ||||||
| 24 | school, a group of those schools, or one or more school | ||||||
| 25 | districts if the events are sponsored by an entity | ||||||
| 26 | recognized by the school district that consists primarily | ||||||
| |||||||
| |||||||
| 1 | of volunteers and includes parents and teachers of the | ||||||
| 2 | school children. This paragraph does not apply to | ||||||
| 3 | fundraising events (i) for the benefit of private home | ||||||
| 4 | instruction or (ii) for which the fundraising entity | ||||||
| 5 | purchases the personal property sold at the events from | ||||||
| 6 | another individual or entity that sold the property for | ||||||
| 7 | the purpose of resale by the fundraising entity and that | ||||||
| 8 | profits from the sale to the fundraising entity. This | ||||||
| 9 | paragraph is exempt from the provisions of Section 2-70. | ||||||
| 10 | (35) Beginning January 1, 2000 and through December | ||||||
| 11 | 31, 2001, new or used automatic vending machines that | ||||||
| 12 | prepare and serve hot food and beverages, including | ||||||
| 13 | coffee, soup, and other items, and replacement parts for | ||||||
| 14 | these machines. Beginning January 1, 2002 and through June | ||||||
| 15 | 30, 2003, machines and parts for machines used in | ||||||
| 16 | commercial, coin-operated amusement and vending business | ||||||
| 17 | if a use or occupation tax is paid on the gross receipts | ||||||
| 18 | derived from the use of the commercial, coin-operated | ||||||
| 19 | amusement and vending machines. This paragraph is exempt | ||||||
| 20 | from the provisions of Section 2-70. | ||||||
| 21 | (35-5) Beginning August 23, 2001 and through June 30, | ||||||
| 22 | 2016, food for human consumption that is to be consumed | ||||||
| 23 | off the premises where it is sold (other than alcoholic | ||||||
| 24 | beverages, soft drinks, and food that has been prepared | ||||||
| 25 | for immediate consumption) and prescription and | ||||||
| 26 | nonprescription medicines, drugs, medical appliances, and | ||||||
| |||||||
| |||||||
| 1 | insulin, urine testing materials, syringes, and needles | ||||||
| 2 | used by diabetics, for human use, when purchased for use | ||||||
| 3 | by a person receiving medical assistance under Article V | ||||||
| 4 | of the Illinois Public Aid Code who resides in a licensed | ||||||
| 5 | long-term care facility, as defined in the Nursing Home | ||||||
| 6 | Care Act, or a licensed facility as defined in the ID/DD | ||||||
| 7 | Community Care Act, the MC/DD Act, or the Specialized | ||||||
| 8 | Mental Health Rehabilitation Act of 2013. | ||||||
| 9 | (36) Beginning August 2, 2001, computers and | ||||||
| 10 | communications equipment utilized for any hospital purpose | ||||||
| 11 | and equipment used in the diagnosis, analysis, or | ||||||
| 12 | treatment of hospital patients sold to a lessor who leases | ||||||
| 13 | the equipment, under a lease of one year or longer | ||||||
| 14 | executed or in effect at the time of the purchase, to a | ||||||
| 15 | hospital that has been issued an active tax exemption | ||||||
| 16 | identification number by the Department under Section 1g | ||||||
| 17 | of this Act. This paragraph is exempt from the provisions | ||||||
| 18 | of Section 2-70. | ||||||
| 19 | (37) Beginning August 2, 2001, personal property sold | ||||||
| 20 | to a lessor who leases the property, under a lease of one | ||||||
| 21 | year or longer executed or in effect at the time of the | ||||||
| 22 | purchase, to a governmental body that has been issued an | ||||||
| 23 | active tax exemption identification number by the | ||||||
| 24 | Department under Section 1g of this Act. This paragraph is | ||||||
| 25 | exempt from the provisions of Section 2-70. | ||||||
| 26 | (38) Beginning on January 1, 2002 and through June 30, | ||||||
| |||||||
| |||||||
| 1 | 2016, tangible personal property purchased from an | ||||||
| 2 | Illinois retailer by a taxpayer engaged in centralized | ||||||
| 3 | purchasing activities in Illinois who will, upon receipt | ||||||
| 4 | of the property in Illinois, temporarily store the | ||||||
| 5 | property in Illinois (i) for the purpose of subsequently | ||||||
| 6 | transporting it outside this State for use or consumption | ||||||
| 7 | thereafter solely outside this State or (ii) for the | ||||||
| 8 | purpose of being processed, fabricated, or manufactured | ||||||
| 9 | into, attached to, or incorporated into other tangible | ||||||
| 10 | personal property to be transported outside this State and | ||||||
| 11 | thereafter used or consumed solely outside this State. The | ||||||
| 12 | Director of Revenue shall, pursuant to rules adopted in | ||||||
| 13 | accordance with the Illinois Administrative Procedure Act, | ||||||
| 14 | issue a permit to any taxpayer in good standing with the | ||||||
| 15 | Department who is eligible for the exemption under this | ||||||
| 16 | paragraph (38). The permit issued under this paragraph | ||||||
| 17 | (38) shall authorize the holder, to the extent and in the | ||||||
| 18 | manner specified in the rules adopted under this Act, to | ||||||
| 19 | purchase tangible personal property from a retailer exempt | ||||||
| 20 | from the taxes imposed by this Act. Taxpayers shall | ||||||
| 21 | maintain all necessary books and records to substantiate | ||||||
| 22 | the use and consumption of all such tangible personal | ||||||
| 23 | property outside of the State of Illinois. | ||||||
| 24 | (39) Beginning January 1, 2008, tangible personal | ||||||
| 25 | property used in the construction or maintenance of a | ||||||
| 26 | community water supply, as defined under Section 3.145 of | ||||||
| |||||||
| |||||||
| 1 | the Environmental Protection Act, that is operated by a | ||||||
| 2 | not-for-profit corporation that holds a valid water supply | ||||||
| 3 | permit issued under Title IV of the Environmental | ||||||
| 4 | Protection Act. This paragraph is exempt from the | ||||||
| 5 | provisions of Section 2-70. | ||||||
| 6 | (40) Beginning January 1, 2010 and continuing through | ||||||
| 7 | December 31, 2029, materials, parts, equipment, | ||||||
| 8 | components, and furnishings incorporated into or upon an | ||||||
| 9 | aircraft as part of the modification, refurbishment, | ||||||
| 10 | completion, replacement, repair, or maintenance of the | ||||||
| 11 | aircraft. This exemption includes consumable supplies used | ||||||
| 12 | in the modification, refurbishment, completion, | ||||||
| 13 | replacement, repair, and maintenance of aircraft. However, | ||||||
| 14 | until January 1, 2024, this exemption excludes any | ||||||
| 15 | materials, parts, equipment, components, and consumable | ||||||
| 16 | supplies used in the modification, replacement, repair, | ||||||
| 17 | and maintenance of aircraft engines or power plants, | ||||||
| 18 | whether such engines or power plants are installed or | ||||||
| 19 | uninstalled upon any such aircraft. "Consumable supplies" | ||||||
| 20 | include, but are not limited to, adhesive, tape, | ||||||
| 21 | sandpaper, general purpose lubricants, cleaning solution, | ||||||
| 22 | latex gloves, and protective films. | ||||||
| 23 | Beginning January 1, 2010 and continuing through | ||||||
| 24 | December 31, 2023, this exemption applies only to the sale | ||||||
| 25 | of qualifying tangible personal property to persons who | ||||||
| 26 | modify, refurbish, complete, replace, or maintain an | ||||||
| |||||||
| |||||||
| 1 | aircraft and who (i) hold an Air Agency Certificate and | ||||||
| 2 | are empowered to operate an approved repair station by the | ||||||
| 3 | Federal Aviation Administration, (ii) have a Class IV | ||||||
| 4 | Rating, and (iii) conduct operations in accordance with | ||||||
| 5 | Part 145 of the Federal Aviation Regulations. The | ||||||
| 6 | exemption does not include aircraft operated by a | ||||||
| 7 | commercial air carrier providing scheduled passenger air | ||||||
| 8 | service pursuant to authority issued under Part 121 or | ||||||
| 9 | Part 129 of the Federal Aviation Regulations. From January | ||||||
| 10 | 1, 2024 through December 31, 2029, this exemption applies | ||||||
| 11 | only to the use of qualifying tangible personal property | ||||||
| 12 | by: (A) persons who modify, refurbish, complete, repair, | ||||||
| 13 | replace, or maintain aircraft and who (i) hold an Air | ||||||
| 14 | Agency Certificate and are empowered to operate an | ||||||
| 15 | approved repair station by the Federal Aviation | ||||||
| 16 | Administration, (ii) have a Class IV Rating, and (iii) | ||||||
| 17 | conduct operations in accordance with Part 145 of the | ||||||
| 18 | Federal Aviation Regulations; and (B) persons who engage | ||||||
| 19 | in the modification, replacement, repair, and maintenance | ||||||
| 20 | of aircraft engines or power plants without regard to | ||||||
| 21 | whether or not those persons meet the qualifications of | ||||||
| 22 | item (A). | ||||||
| 23 | The changes made to this paragraph (40) by Public Act | ||||||
| 24 | 98-534 are declarative of existing law. It is the intent | ||||||
| 25 | of the General Assembly that the exemption under this | ||||||
| 26 | paragraph (40) applies continuously from January 1, 2010 | ||||||
| |||||||
| |||||||
| 1 | through December 31, 2024; however, no claim for credit or | ||||||
| 2 | refund is allowed for taxes paid as a result of the | ||||||
| 3 | disallowance of this exemption on or after January 1, 2015 | ||||||
| 4 | and prior to February 5, 2020 (the effective date of | ||||||
| 5 | Public Act 101-629). | ||||||
| 6 | (41) Tangible personal property sold to a | ||||||
| 7 | public-facilities corporation, as described in Section | ||||||
| 8 | 11-65-10 of the Illinois Municipal Code, for purposes of | ||||||
| 9 | constructing or furnishing a municipal convention hall, | ||||||
| 10 | but only if the legal title to the municipal convention | ||||||
| 11 | hall is transferred to the municipality without any | ||||||
| 12 | further consideration by or on behalf of the municipality | ||||||
| 13 | at the time of the completion of the municipal convention | ||||||
| 14 | hall or upon the retirement or redemption of any bonds or | ||||||
| 15 | other debt instruments issued by the public-facilities | ||||||
| 16 | corporation in connection with the development of the | ||||||
| 17 | municipal convention hall. This exemption includes | ||||||
| 18 | existing public-facilities corporations as provided in | ||||||
| 19 | Section 11-65-25 of the Illinois Municipal Code. This | ||||||
| 20 | paragraph is exempt from the provisions of Section 2-70. | ||||||
| 21 | (42) Beginning January 1, 2017 and through December | ||||||
| 22 | 31, 2026, menstrual pads, tampons, and menstrual cups. | ||||||
| 23 | (43) Merchandise that is subject to the Rental | ||||||
| 24 | Purchase Agreement Occupation and Use Tax. The purchaser | ||||||
| 25 | must certify that the item is purchased to be rented | ||||||
| 26 | subject to a rental-purchase rental purchase agreement, as | ||||||
| |||||||
| |||||||
| 1 | defined in the Rental-Purchase Rental Purchase Agreement | ||||||
| 2 | Act, and provide proof of registration under the Rental | ||||||
| 3 | Purchase Agreement Occupation and Use Tax Act. This | ||||||
| 4 | paragraph is exempt from the provisions of Section 2-70. | ||||||
| 5 | (44) Qualified tangible personal property used in the | ||||||
| 6 | construction or operation of a data center that has been | ||||||
| 7 | granted a certificate of exemption by the Department of | ||||||
| 8 | Commerce and Economic Opportunity, whether that tangible | ||||||
| 9 | personal property is purchased by the owner, operator, or | ||||||
| 10 | tenant of the data center or by a contractor or | ||||||
| 11 | subcontractor of the owner, operator, or tenant. Data | ||||||
| 12 | centers that would have qualified for a certificate of | ||||||
| 13 | exemption prior to January 1, 2020 had Public Act 101-31 | ||||||
| 14 | been in effect, may apply for and obtain an exemption for | ||||||
| 15 | subsequent purchases of computer equipment or enabling | ||||||
| 16 | software purchased or leased to upgrade, supplement, or | ||||||
| 17 | replace computer equipment or enabling software purchased | ||||||
| 18 | or leased in the original investment that would have | ||||||
| 19 | qualified. | ||||||
| 20 | The Department of Commerce and Economic Opportunity | ||||||
| 21 | shall grant a certificate of exemption under this item | ||||||
| 22 | (44) to qualified data centers as defined by Section | ||||||
| 23 | 605-1025 of the Department of Commerce and Economic | ||||||
| 24 | Opportunity Law of the Civil Administrative Code of | ||||||
| 25 | Illinois. | ||||||
| 26 | For the purposes of this item (44): | ||||||
| |||||||
| |||||||
| 1 | "Data center" means a building or a series of | ||||||
| 2 | buildings rehabilitated or constructed to house | ||||||
| 3 | working servers in one physical location or multiple | ||||||
| 4 | sites within the State of Illinois. | ||||||
| 5 | "Qualified tangible personal property" means: | ||||||
| 6 | electrical systems and equipment; climate control and | ||||||
| 7 | chilling equipment and systems; mechanical systems and | ||||||
| 8 | equipment; monitoring and secure systems; emergency | ||||||
| 9 | generators; hardware; computers; servers; data storage | ||||||
| 10 | devices; network connectivity equipment; racks; | ||||||
| 11 | cabinets; telecommunications cabling infrastructure; | ||||||
| 12 | raised floor systems; peripheral components or | ||||||
| 13 | systems; software; mechanical, electrical, or plumbing | ||||||
| 14 | systems; battery systems; cooling systems and towers; | ||||||
| 15 | temperature control systems; other cabling; and other | ||||||
| 16 | data center infrastructure equipment and systems | ||||||
| 17 | necessary to operate qualified tangible personal | ||||||
| 18 | property, including fixtures; and component parts of | ||||||
| 19 | any of the foregoing, including installation, | ||||||
| 20 | maintenance, repair, refurbishment, and replacement of | ||||||
| 21 | qualified tangible personal property to generate, | ||||||
| 22 | transform, transmit, distribute, or manage electricity | ||||||
| 23 | necessary to operate qualified tangible personal | ||||||
| 24 | property; and all other tangible personal property | ||||||
| 25 | that is essential to the operations of a computer data | ||||||
| 26 | center. The term "qualified tangible personal | ||||||
| |||||||
| |||||||
| 1 | property" also includes building materials physically | ||||||
| 2 | incorporated into the qualifying data center. To | ||||||
| 3 | document the exemption allowed under this Section, the | ||||||
| 4 | retailer must obtain from the purchaser a copy of the | ||||||
| 5 | certificate of eligibility issued by the Department of | ||||||
| 6 | Commerce and Economic Opportunity. | ||||||
| 7 | This item (44) is exempt from the provisions of | ||||||
| 8 | Section 2-70. | ||||||
| 9 | (45) Beginning January 1, 2020 and through December | ||||||
| 10 | 31, 2020, sales of tangible personal property made by a | ||||||
| 11 | marketplace seller over a marketplace for which tax is due | ||||||
| 12 | under this Act but for which use tax has been collected and | ||||||
| 13 | remitted to the Department by a marketplace facilitator | ||||||
| 14 | under Section 2d of the Use Tax Act are exempt from tax | ||||||
| 15 | under this Act. A marketplace seller claiming this | ||||||
| 16 | exemption shall maintain books and records demonstrating | ||||||
| 17 | that the use tax on such sales has been collected and | ||||||
| 18 | remitted by a marketplace facilitator. Marketplace sellers | ||||||
| 19 | that have properly remitted tax under this Act on such | ||||||
| 20 | sales may file a claim for credit as provided in Section 6 | ||||||
| 21 | of this Act. No claim is allowed, however, for such taxes | ||||||
| 22 | for which a credit or refund has been issued to the | ||||||
| 23 | marketplace facilitator under the Use Tax Act, or for | ||||||
| 24 | which the marketplace facilitator has filed a claim for | ||||||
| 25 | credit or refund under the Use Tax Act. | ||||||
| 26 | (46) Beginning July 1, 2022, breast pumps, breast pump | ||||||
| |||||||
| |||||||
| 1 | collection and storage supplies, and breast pump kits. | ||||||
| 2 | This item (46) is exempt from the provisions of Section | ||||||
| 3 | 2-70. As used in this item (46): | ||||||
| 4 | "Breast pump" means an electrically controlled or | ||||||
| 5 | manually controlled pump device designed or marketed to be | ||||||
| 6 | used to express milk from a human breast during lactation, | ||||||
| 7 | including the pump device and any battery, AC adapter, or | ||||||
| 8 | other power supply unit that is used to power the pump | ||||||
| 9 | device and is packaged and sold with the pump device at the | ||||||
| 10 | time of sale. | ||||||
| 11 | "Breast pump collection and storage supplies" means | ||||||
| 12 | items of tangible personal property designed or marketed | ||||||
| 13 | to be used in conjunction with a breast pump to collect | ||||||
| 14 | milk expressed from a human breast and to store collected | ||||||
| 15 | milk until it is ready for consumption. | ||||||
| 16 | "Breast pump collection and storage supplies" | ||||||
| 17 | includes, but is not limited to: breast shields and breast | ||||||
| 18 | shield connectors; breast pump tubes and tubing adapters; | ||||||
| 19 | breast pump valves and membranes; backflow protectors and | ||||||
| 20 | backflow protector adaptors; bottles and bottle caps | ||||||
| 21 | specific to the operation of the breast pump; and breast | ||||||
| 22 | milk storage bags. | ||||||
| 23 | "Breast pump collection and storage supplies" does not | ||||||
| 24 | include: (1) bottles and bottle caps not specific to the | ||||||
| 25 | operation of the breast pump; (2) breast pump travel bags | ||||||
| 26 | and other similar carrying accessories, including ice | ||||||
| |||||||
| |||||||
| 1 | packs, labels, and other similar products; (3) breast pump | ||||||
| 2 | cleaning supplies; (4) nursing bras, bra pads, breast | ||||||
| 3 | shells, and other similar products; and (5) creams, | ||||||
| 4 | ointments, and other similar products that relieve | ||||||
| 5 | breastfeeding-related symptoms or conditions of the | ||||||
| 6 | breasts or nipples, unless sold as part of a breast pump | ||||||
| 7 | kit that is pre-packaged by the breast pump manufacturer | ||||||
| 8 | or distributor. | ||||||
| 9 | "Breast pump kit" means a kit that: (1) contains no | ||||||
| 10 | more than a breast pump, breast pump collection and | ||||||
| 11 | storage supplies, a rechargeable battery for operating the | ||||||
| 12 | breast pump, a breastmilk cooler, bottle stands, ice | ||||||
| 13 | packs, and a breast pump carrying case; and (2) is | ||||||
| 14 | pre-packaged as a breast pump kit by the breast pump | ||||||
| 15 | manufacturer or distributor. | ||||||
| 16 | (47) Tangible personal property sold by or on behalf | ||||||
| 17 | of the State Treasurer pursuant to the Revised Uniform | ||||||
| 18 | Unclaimed Property Act. This item (47) is exempt from the | ||||||
| 19 | provisions of Section 2-70. | ||||||
| 20 | (48) Beginning on January 1, 2024, tangible personal | ||||||
| 21 | property purchased by an active duty member of the armed | ||||||
| 22 | forces of the United States who presents valid military | ||||||
| 23 | identification and purchases the property using a form of | ||||||
| 24 | payment where the federal government is the payor. The | ||||||
| 25 | member of the armed forces must complete, at the point of | ||||||
| 26 | sale, a form prescribed by the Department of Revenue | ||||||
| |||||||
| |||||||
| 1 | documenting that the transaction is eligible for the | ||||||
| 2 | exemption under this paragraph. Retailers must keep the | ||||||
| 3 | form as documentation of the exemption in their records | ||||||
| 4 | for a period of not less than 6 years. "Armed forces of the | ||||||
| 5 | United States" means the United States Army, Navy, Air | ||||||
| 6 | Force, Marine Corps, or Coast Guard. This paragraph is | ||||||
| 7 | exempt from the provisions of Section 2-70. | ||||||
| 8 | (49) Gross receipts from the lease of the following | ||||||
| 9 | tangible personal property: | ||||||
| 10 | (1) computer software transferred subject to a | ||||||
| 11 | license that meets the following requirements: | ||||||
| 12 | (A) it is evidenced by a written agreement | ||||||
| 13 | signed by the licensor and the customer; | ||||||
| 14 | (i) an electronic agreement in which the | ||||||
| 15 | customer accepts the license by means of an | ||||||
| 16 | electronic signature that is verifiable and | ||||||
| 17 | can be authenticated and is attached to or | ||||||
| 18 | made part of the license will comply with this | ||||||
| 19 | requirement; | ||||||
| 20 | (ii) a license agreement in which the | ||||||
| 21 | customer electronically accepts the terms by | ||||||
| 22 | clicking "I agree" does not comply with this | ||||||
| 23 | requirement; | ||||||
| 24 | (B) it restricts the customer's duplication | ||||||
| 25 | and use of the software; | ||||||
| 26 | (C) it prohibits the customer from licensing, | ||||||
| |||||||
| |||||||
| 1 | sublicensing, or transferring the software to a | ||||||
| 2 | third party (except to a related party) without | ||||||
| 3 | the permission and continued control of the | ||||||
| 4 | licensor; | ||||||
| 5 | (D) the licensor has a policy of providing | ||||||
| 6 | another copy at minimal or no charge if the | ||||||
| 7 | customer loses or damages the software, or of | ||||||
| 8 | permitting the licensee to make and keep an | ||||||
| 9 | archival copy, and such policy is either stated in | ||||||
| 10 | the license agreement, supported by the licensor's | ||||||
| 11 | books and records, or supported by a notarized | ||||||
| 12 | statement made under penalties of perjury by the | ||||||
| 13 | licensor; and | ||||||
| 14 | (E) the customer must destroy or return all | ||||||
| 15 | copies of the software to the licensor at the end | ||||||
| 16 | of the license period; this provision is deemed to | ||||||
| 17 | be met, in the case of a perpetual license, | ||||||
| 18 | without being set forth in the license agreement; | ||||||
| 19 | and | ||||||
| 20 | (2) property that is subject to a tax on lease | ||||||
| 21 | receipts imposed by a home rule unit of local | ||||||
| 22 | government if the ordinance imposing that tax was | ||||||
| 23 | adopted prior to January 1, 2023. | ||||||
| 24 | (Source: P.A. 102-16, eff. 6-17-21; 102-634, eff. 8-27-21; | ||||||
| 25 | 102-700, Article 70, Section 70-20, eff. 4-19-22; 102-700, | ||||||
| 26 | Article 75, Section 75-20, eff. 4-19-22; 102-813, eff. | ||||||
| |||||||
| |||||||
| 1 | 5-13-22; 102-1026, eff. 5-27-22; 103-9, Article 5, Section | ||||||
| 2 | 5-20, eff. 6-7-23; 103-9, Article 15, Section 15-20, eff. | ||||||
| 3 | 6-7-23; 103-154, eff. 6-30-23; 103-384, eff. 1-1-24; revised | ||||||
| 4 | 12-12-23.)
| ||||||
| 5 | (35 ILCS 120/2-10) | ||||||
| 6 | Sec. 2-10. Rate of tax. Unless otherwise provided in this | ||||||
| 7 | Section, the tax imposed by this Act is at the rate of 6.25% of | ||||||
| 8 | gross receipts from sales, which, on and after January 1, | ||||||
| 9 | 2025, includes leases, of tangible personal property made in | ||||||
| 10 | the course of business. | ||||||
| 11 | Beginning on July 1, 2000 and through December 31, 2000, | ||||||
| 12 | with respect to motor fuel, as defined in Section 1.1 of the | ||||||
| 13 | Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of | ||||||
| 14 | the Use Tax Act, the tax is imposed at the rate of 1.25%. | ||||||
| 15 | Beginning on August 6, 2010 through August 15, 2010, and | ||||||
| 16 | beginning again on August 5, 2022 through August 14, 2022, | ||||||
| 17 | with respect to sales tax holiday items as defined in Section | ||||||
| 18 | 2-8 of this Act, the tax is imposed at the rate of 1.25%. | ||||||
| 19 | Within 14 days after July 1, 2000 (the effective date of | ||||||
| 20 | Public Act 91-872), each retailer of motor fuel and gasohol | ||||||
| 21 | shall cause the following notice to be posted in a prominently | ||||||
| 22 | visible place on each retail dispensing device that is used to | ||||||
| 23 | dispense motor fuel or gasohol in the State of Illinois: "As of | ||||||
| 24 | July 1, 2000, the State of Illinois has eliminated the State's | ||||||
| 25 | share of sales tax on motor fuel and gasohol through December | ||||||
| |||||||
| |||||||
| 1 | 31, 2000. The price on this pump should reflect the | ||||||
| 2 | elimination of the tax." The notice shall be printed in bold | ||||||
| 3 | print on a sign that is no smaller than 4 inches by 8 inches. | ||||||
| 4 | The sign shall be clearly visible to customers. Any retailer | ||||||
| 5 | who fails to post or maintain a required sign through December | ||||||
| 6 | 31, 2000 is guilty of a petty offense for which the fine shall | ||||||
| 7 | be $500 per day per each retail premises where a violation | ||||||
| 8 | occurs. | ||||||
| 9 | With respect to gasohol, as defined in the Use Tax Act, the | ||||||
| 10 | tax imposed by this Act applies to (i) 70% of the proceeds of | ||||||
| 11 | sales made on or after January 1, 1990, and before July 1, | ||||||
| 12 | 2003, (ii) 80% of the proceeds of sales made on or after July | ||||||
| 13 | 1, 2003 and on or before July 1, 2017, (iii) 100% of the | ||||||
| 14 | proceeds of sales made after July 1, 2017 and prior to January | ||||||
| 15 | 1, 2024, (iv) 90% of the proceeds of sales made on or after | ||||||
| 16 | January 1, 2024 and on or before December 31, 2028, and (v) | ||||||
| 17 | 100% of the proceeds of sales made after December 31, 2028. If, | ||||||
| 18 | at any time, however, the tax under this Act on sales of | ||||||
| 19 | gasohol, as defined in the Use Tax Act, is imposed at the rate | ||||||
| 20 | of 1.25%, then the tax imposed by this Act applies to 100% of | ||||||
| 21 | the proceeds of sales of gasohol made during that time. | ||||||
| 22 | With respect to mid-range ethanol blends, as defined in | ||||||
| 23 | Section 3-44.3 of the Use Tax Act, the tax imposed by this Act | ||||||
| 24 | applies to (i) 80% of the proceeds of sales made on or after | ||||||
| 25 | January 1, 2024 and on or before December 31, 2028 and (ii) | ||||||
| 26 | 100% of the proceeds of sales made after December 31, 2028. If, | ||||||
| |||||||
| |||||||
| 1 | at any time, however, the tax under this Act on sales of | ||||||
| 2 | mid-range ethanol blends is imposed at the rate of 1.25%, then | ||||||
| 3 | the tax imposed by this Act applies to 100% of the proceeds of | ||||||
| 4 | sales of mid-range ethanol blends made during that time. | ||||||
| 5 | With respect to majority blended ethanol fuel, as defined | ||||||
| 6 | in the Use Tax Act, the tax imposed by this Act does not apply | ||||||
| 7 | to the proceeds of sales made on or after July 1, 2003 and on | ||||||
| 8 | or before December 31, 2028 but applies to 100% of the proceeds | ||||||
| 9 | of sales made thereafter. | ||||||
| 10 | With respect to biodiesel blends, as defined in the Use | ||||||
| 11 | Tax Act, with no less than 1% and no more than 10% biodiesel, | ||||||
| 12 | the tax imposed by this Act applies to (i) 80% of the proceeds | ||||||
| 13 | of sales made on or after July 1, 2003 and on or before | ||||||
| 14 | December 31, 2018 and (ii) 100% of the proceeds of sales made | ||||||
| 15 | after December 31, 2018 and before January 1, 2024. On and | ||||||
| 16 | after January 1, 2024 and on or before December 31, 2030, the | ||||||
| 17 | taxation of biodiesel, renewable diesel, and biodiesel blends | ||||||
| 18 | shall be as provided in Section 3-5.1 of the Use Tax Act. If, | ||||||
| 19 | at any time, however, the tax under this Act on sales of | ||||||
| 20 | biodiesel blends, as defined in the Use Tax Act, with no less | ||||||
| 21 | than 1% and no more than 10% biodiesel is imposed at the rate | ||||||
| 22 | of 1.25%, then the tax imposed by this Act applies to 100% of | ||||||
| 23 | the proceeds of sales of biodiesel blends with no less than 1% | ||||||
| 24 | and no more than 10% biodiesel made during that time. | ||||||
| 25 | With respect to biodiesel, as defined in the Use Tax Act, | ||||||
| 26 | and biodiesel blends, as defined in the Use Tax Act, with more | ||||||
| |||||||
| |||||||
| 1 | than 10% but no more than 99% biodiesel, the tax imposed by | ||||||
| 2 | this Act does not apply to the proceeds of sales made on or | ||||||
| 3 | after July 1, 2003 and on or before December 31, 2023. On and | ||||||
| 4 | after January 1, 2024 and on or before December 31, 2030, the | ||||||
| 5 | taxation of biodiesel, renewable diesel, and biodiesel blends | ||||||
| 6 | shall be as provided in Section 3-5.1 of the Use Tax Act. | ||||||
| 7 | Until July 1, 2022 and beginning again on July 1, 2023, | ||||||
| 8 | with respect to food for human consumption that is to be | ||||||
| 9 | consumed off the premises where it is sold (other than | ||||||
| 10 | alcoholic beverages, food consisting of or infused with adult | ||||||
| 11 | use cannabis, soft drinks, and food that has been prepared for | ||||||
| 12 | immediate consumption), the tax is imposed at the rate of 1%. | ||||||
| 13 | Beginning July 1, 2022 and until July 1, 2023, with respect to | ||||||
| 14 | food for human consumption that is to be consumed off the | ||||||
| 15 | premises where it is sold (other than alcoholic beverages, | ||||||
| 16 | food consisting of or infused with adult use cannabis, soft | ||||||
| 17 | drinks, and food that has been prepared for immediate | ||||||
| 18 | consumption), the tax is imposed at the rate of 0%. | ||||||
| 19 | With respect to prescription and nonprescription | ||||||
| 20 | medicines, drugs, medical appliances, products classified as | ||||||
| 21 | Class III medical devices by the United States Food and Drug | ||||||
| 22 | Administration that are used for cancer treatment pursuant to | ||||||
| 23 | a prescription, as well as any accessories and components | ||||||
| 24 | related to those devices, modifications to a motor vehicle for | ||||||
| 25 | the purpose of rendering it usable by a person with a | ||||||
| 26 | disability, and insulin, blood sugar testing materials, | ||||||
| |||||||
| |||||||
| 1 | syringes, and needles used by human diabetics, the tax is | ||||||
| 2 | imposed at the rate of 1%. For the purposes of this Section, | ||||||
| 3 | until September 1, 2009: the term "soft drinks" means any | ||||||
| 4 | complete, finished, ready-to-use, non-alcoholic drink, whether | ||||||
| 5 | carbonated or not, including, but not limited to, soda water, | ||||||
| 6 | cola, fruit juice, vegetable juice, carbonated water, and all | ||||||
| 7 | other preparations commonly known as soft drinks of whatever | ||||||
| 8 | kind or description that are contained in any closed or sealed | ||||||
| 9 | bottle, can, carton, or container, regardless of size; but | ||||||
| 10 | "soft drinks" does not include coffee, tea, non-carbonated | ||||||
| 11 | water, infant formula, milk or milk products as defined in the | ||||||
| 12 | Grade A Pasteurized Milk and Milk Products Act, or drinks | ||||||
| 13 | containing 50% or more natural fruit or vegetable juice. | ||||||
| 14 | Notwithstanding any other provisions of this Act, | ||||||
| 15 | beginning September 1, 2009, "soft drinks" means non-alcoholic | ||||||
| 16 | beverages that contain natural or artificial sweeteners. "Soft | ||||||
| 17 | drinks" does not include beverages that contain milk or milk | ||||||
| 18 | products, soy, rice or similar milk substitutes, or greater | ||||||
| 19 | than 50% of vegetable or fruit juice by volume. | ||||||
| 20 | Until August 1, 2009, and notwithstanding any other | ||||||
| 21 | provisions of this Act, "food for human consumption that is to | ||||||
| 22 | be consumed off the premises where it is sold" includes all | ||||||
| 23 | food sold through a vending machine, except soft drinks and | ||||||
| 24 | food products that are dispensed hot from a vending machine, | ||||||
| 25 | regardless of the location of the vending machine. Beginning | ||||||
| 26 | August 1, 2009, and notwithstanding any other provisions of | ||||||
| |||||||
| |||||||
| 1 | this Act, "food for human consumption that is to be consumed | ||||||
| 2 | off the premises where it is sold" includes all food sold | ||||||
| 3 | through a vending machine, except soft drinks, candy, and food | ||||||
| 4 | products that are dispensed hot from a vending machine, | ||||||
| 5 | regardless of the location of the vending machine. | ||||||
| 6 | Notwithstanding any other provisions of this Act, | ||||||
| 7 | beginning September 1, 2009, "food for human consumption that | ||||||
| 8 | is to be consumed off the premises where it is sold" does not | ||||||
| 9 | include candy. For purposes of this Section, "candy" means a | ||||||
| 10 | preparation of sugar, honey, or other natural or artificial | ||||||
| 11 | sweeteners in combination with chocolate, fruits, nuts or | ||||||
| 12 | other ingredients or flavorings in the form of bars, drops, or | ||||||
| 13 | pieces. "Candy" does not include any preparation that contains | ||||||
| 14 | flour or requires refrigeration. | ||||||
| 15 | Notwithstanding any other provisions of this Act, | ||||||
| 16 | beginning September 1, 2009, "nonprescription medicines and | ||||||
| 17 | drugs" does not include grooming and hygiene products. For | ||||||
| 18 | purposes of this Section, "grooming and hygiene products" | ||||||
| 19 | includes, but is not limited to, soaps and cleaning solutions, | ||||||
| 20 | shampoo, toothpaste, mouthwash, antiperspirants, and sun tan | ||||||
| 21 | lotions and screens, unless those products are available by | ||||||
| 22 | prescription only, regardless of whether the products meet the | ||||||
| 23 | definition of "over-the-counter-drugs". For the purposes of | ||||||
| 24 | this paragraph, "over-the-counter-drug" means a drug for human | ||||||
| 25 | use that contains a label that identifies the product as a drug | ||||||
| 26 | as required by 21 CFR 201.66. The "over-the-counter-drug" | ||||||
| |||||||
| |||||||
| 1 | label includes: | ||||||
| 2 | (A) a "Drug Facts" panel; or | ||||||
| 3 | (B) a statement of the "active ingredient(s)" with a | ||||||
| 4 | list of those ingredients contained in the compound, | ||||||
| 5 | substance or preparation. | ||||||
| 6 | Beginning on January 1, 2014 (the effective date of Public | ||||||
| 7 | Act 98-122), "prescription and nonprescription medicines and | ||||||
| 8 | drugs" includes medical cannabis purchased from a registered | ||||||
| 9 | dispensing organization under the Compassionate Use of Medical | ||||||
| 10 | Cannabis Program Act. | ||||||
| 11 | As used in this Section, "adult use cannabis" means | ||||||
| 12 | cannabis subject to tax under the Cannabis Cultivation | ||||||
| 13 | Privilege Tax Law and the Cannabis Purchaser Excise Tax Law | ||||||
| 14 | and does not include cannabis subject to tax under the | ||||||
| 15 | Compassionate Use of Medical Cannabis Program Act. | ||||||
| 16 | (Source: P.A. 102-4, eff. 4-27-21; 102-700, Article 20, | ||||||
| 17 | Section 20-20, eff. 4-19-22; 102-700, Article 60, Section | ||||||
| 18 | 60-30, eff. 4-19-22; 102-700, Article 65, Section 65-10, eff. | ||||||
| 19 | 4-19-22; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23.)
| ||||||
| 20 | (35 ILCS 120/2-12) | ||||||
| 21 | Sec. 2-12. Location where retailer is deemed to be engaged | ||||||
| 22 | in the business of selling. The purpose of this Section is to | ||||||
| 23 | specify where a retailer is deemed to be engaged in the | ||||||
| 24 | business of selling tangible personal property for the | ||||||
| 25 | purposes of this Act, the Use Tax Act, the Service Use Tax Act, | ||||||
| |||||||
| |||||||
| 1 | and the Service Occupation Tax Act, and for the purpose of | ||||||
| 2 | collecting any other local retailers' occupation tax | ||||||
| 3 | administered by the Department. This Section applies only with | ||||||
| 4 | respect to the particular selling activities described in the | ||||||
| 5 | following paragraphs. The provisions of this Section are not | ||||||
| 6 | intended to, and shall not be interpreted to, affect where a | ||||||
| 7 | retailer is deemed to be engaged in the business of selling | ||||||
| 8 | with respect to any activity that is not specifically | ||||||
| 9 | described in the following paragraphs. | ||||||
| 10 | (1) If a purchaser who is present at the retailer's | ||||||
| 11 | place of business, having no prior commitment to the | ||||||
| 12 | retailer, agrees to purchase and makes payment for | ||||||
| 13 | tangible personal property at the retailer's place of | ||||||
| 14 | business, then the transaction shall be deemed an | ||||||
| 15 | over-the-counter sale occurring at the retailer's same | ||||||
| 16 | place of business where the purchaser was present and made | ||||||
| 17 | payment for that tangible personal property if the | ||||||
| 18 | retailer regularly stocks the purchased tangible personal | ||||||
| 19 | property or similar tangible personal property in the | ||||||
| 20 | quantity, or similar quantity, for sale at the retailer's | ||||||
| 21 | same place of business and then either (i) the purchaser | ||||||
| 22 | takes possession of the tangible personal property at the | ||||||
| 23 | same place of business or (ii) the retailer delivers or | ||||||
| 24 | arranges for the tangible personal property to be | ||||||
| 25 | delivered to the purchaser. | ||||||
| 26 | (2) If a purchaser, having no prior commitment to the | ||||||
| |||||||
| |||||||
| 1 | retailer, agrees to purchase tangible personal property | ||||||
| 2 | and makes payment over the phone, in writing, or via the | ||||||
| 3 | Internet and takes possession of the tangible personal | ||||||
| 4 | property at the retailer's place of business, then the | ||||||
| 5 | sale shall be deemed to have occurred at the retailer's | ||||||
| 6 | place of business where the purchaser takes possession of | ||||||
| 7 | the property if the retailer regularly stocks the item or | ||||||
| 8 | similar items in the quantity, or similar quantities, | ||||||
| 9 | purchased by the purchaser. | ||||||
| 10 | (3) A retailer is deemed to be engaged in the business | ||||||
| 11 | of selling food, beverages, or other tangible personal | ||||||
| 12 | property through a vending machine at the location where | ||||||
| 13 | the vending machine is located at the time the sale is made | ||||||
| 14 | if (i) the vending machine is a device operated by coin, | ||||||
| 15 | currency, credit card, token, coupon or similar device; | ||||||
| 16 | (2) the food, beverage or other tangible personal property | ||||||
| 17 | is contained within the vending machine and dispensed from | ||||||
| 18 | the vending machine; and (3) the purchaser takes | ||||||
| 19 | possession of the purchased food, beverage or other | ||||||
| 20 | tangible personal property immediately. | ||||||
| 21 | (4) Minerals. A producer of coal or other mineral | ||||||
| 22 | mined in Illinois is deemed to be engaged in the business | ||||||
| 23 | of selling at the place where the coal or other mineral | ||||||
| 24 | mined in Illinois is extracted from the earth. With | ||||||
| 25 | respect to minerals (i) the term "extracted from the | ||||||
| 26 | earth" means the location at which the coal or other | ||||||
| |||||||
| |||||||
| 1 | mineral is extracted from the mouth of the mine, and (ii) a | ||||||
| 2 | "mineral" includes not only coal, but also oil, sand, | ||||||
| 3 | stone taken from a quarry, gravel and any other thing | ||||||
| 4 | commonly regarded as a mineral and extracted from the | ||||||
| 5 | earth. This paragraph does not apply to coal or another | ||||||
| 6 | mineral when it is delivered or shipped by the seller to | ||||||
| 7 | the purchaser at a point outside Illinois so that the sale | ||||||
| 8 | is exempt under the United States Constitution as a sale | ||||||
| 9 | in interstate or foreign commerce. | ||||||
| 10 | (5) A retailer selling tangible personal property to a | ||||||
| 11 | nominal lessee or bailee pursuant to a lease with a dollar | ||||||
| 12 | or other nominal option to purchase is engaged in the | ||||||
| 13 | business of selling at the location where the property is | ||||||
| 14 | first delivered to the lessee or bailee for its intended | ||||||
| 15 | use. | ||||||
| 16 | (5.5) Lease transactions. The lease of tangible | ||||||
| 17 | personal property that is subject to the tax on leases | ||||||
| 18 | under this amendatory Act of the 103rd General Assembly is | ||||||
| 19 | sourced as follows: | ||||||
| 20 | (i) For a lease that requires recurring periodic | ||||||
| 21 | payments and for which the property is delivered to | ||||||
| 22 | the lessee by the lessor, each periodic payment is | ||||||
| 23 | sourced to the primary property location for each | ||||||
| 24 | period covered by the payment. The primary property | ||||||
| 25 | location shall be as indicated by an address for the | ||||||
| 26 | property provided by the lessee that is available to | ||||||
| |||||||
| |||||||
| 1 | the lessor from its records maintained in the ordinary | ||||||
| 2 | course of business, when use of this address does not | ||||||
| 3 | constitute bad faith. The property location is not | ||||||
| 4 | altered by intermittent use at different locations, | ||||||
| 5 | such as use of business property that accompanies | ||||||
| 6 | employees on business trips and service calls. | ||||||
| 7 | (ii) For all other leases, including a lease that | ||||||
| 8 | does not require recurring periodic payments and any | ||||||
| 9 | lease for which the lessee takes possession of the | ||||||
| 10 | property at the lessor's place of business, the | ||||||
| 11 | payment is sourced as otherwise provided under this | ||||||
| 12 | Act for sales at retail other than leases. | ||||||
| 13 | (6) Beginning on January 1, 2021, a remote retailer | ||||||
| 14 | making retail sales of tangible personal property that | ||||||
| 15 | meet or exceed the thresholds established in paragraph (1) | ||||||
| 16 | or (2) of subsection (b) of Section 2 of this Act is | ||||||
| 17 | engaged in the business of selling at the Illinois | ||||||
| 18 | location to which the tangible personal property is | ||||||
| 19 | shipped or delivered or at which possession is taken by | ||||||
| 20 | the purchaser. | ||||||
| 21 | (7) Beginning January 1, 2021, a marketplace | ||||||
| 22 | facilitator facilitating sales of tangible personal | ||||||
| 23 | property that meet or exceed one of the thresholds | ||||||
| 24 | established in paragraph (1) or (2) of subsection (c) of | ||||||
| 25 | Section 2 of this Act is deemed to be engaged in the | ||||||
| 26 | business of selling at the Illinois location to which the | ||||||
| |||||||
| |||||||
| 1 | tangible personal property is shipped or delivered or at | ||||||
| 2 | which possession is taken by the purchaser when the sale | ||||||
| 3 | is made by a marketplace seller on the marketplace | ||||||
| 4 | facilitator's marketplace. | ||||||
| 5 | (Source: P.A. 101-31, eff. 6-28-19; 101-604, eff. 1-1-20.)
| ||||||
| 6 | (35 ILCS 120/2a) (from Ch. 120, par. 441a) | ||||||
| 7 | Sec. 2a. Registration of retailers. It is unlawful for any | ||||||
| 8 | person to engage in the business of selling, which, on and | ||||||
| 9 | after January 1, 2025, includes leasing, tangible personal | ||||||
| 10 | property at retail in this State without a certificate of | ||||||
| 11 | registration from the Department. Application for a | ||||||
| 12 | certificate of registration shall be made to the Department | ||||||
| 13 | upon forms furnished by it. Each such application shall be | ||||||
| 14 | signed and verified and shall state: (1) the name and social | ||||||
| 15 | security number of the applicant; (2) the address of his | ||||||
| 16 | principal place of business; (3) the address of the principal | ||||||
| 17 | place of business from which he engages in the business of | ||||||
| 18 | selling tangible personal property at retail in this State and | ||||||
| 19 | the addresses of all other places of business, if any | ||||||
| 20 | (enumerating such addresses, if any, in a separate list | ||||||
| 21 | attached to and made a part of the application), from which he | ||||||
| 22 | engages in the business of selling tangible personal property | ||||||
| 23 | at retail in this State; (4) the name and address of the person | ||||||
| 24 | or persons who will be responsible for filing returns and | ||||||
| 25 | payment of taxes due under this Act; (5) in the case of a | ||||||
| |||||||
| |||||||
| 1 | publicly traded corporation, the name and title of the Chief | ||||||
| 2 | Financial Officer, Chief Operating Officer, and any other | ||||||
| 3 | officer or employee with responsibility for preparing tax | ||||||
| 4 | returns under this Act, and, in the case of all other | ||||||
| 5 | corporations, the name, title, and social security number of | ||||||
| 6 | each corporate officer; (6) in the case of a limited liability | ||||||
| 7 | company, the name, social security number, and FEIN number of | ||||||
| 8 | each manager and member; and (7) such other information as the | ||||||
| 9 | Department may reasonably require. The application shall | ||||||
| 10 | contain an acceptance of responsibility signed by the person | ||||||
| 11 | or persons who will be responsible for filing returns and | ||||||
| 12 | payment of the taxes due under this Act. If the applicant will | ||||||
| 13 | sell tangible personal property at retail through vending | ||||||
| 14 | machines, his application to register shall indicate the | ||||||
| 15 | number of vending machines to be so operated. If requested by | ||||||
| 16 | the Department at any time, that person shall verify the total | ||||||
| 17 | number of vending machines he or she uses in his or her | ||||||
| 18 | business of selling tangible personal property at retail. | ||||||
| 19 | The Department shall provide by rule for an expedited | ||||||
| 20 | business registration process for remote retailers required to | ||||||
| 21 | register and file under subsection (b) of Section 2 who use a | ||||||
| 22 | certified service provider to file their returns under this | ||||||
| 23 | Act. Such expedited registration process shall allow the | ||||||
| 24 | Department to register a taxpayer based upon the same | ||||||
| 25 | registration information required by the Streamlined Sales Tax | ||||||
| 26 | Governing Board for states participating in the Streamlined | ||||||
| |||||||
| |||||||
| 1 | Sales Tax Project. | ||||||
| 2 | The Department may deny a certificate of registration to | ||||||
| 3 | any applicant if a person who is named as the owner, a partner, | ||||||
| 4 | a manager or member of a limited liability company, or a | ||||||
| 5 | corporate officer of the applicant on the application for the | ||||||
| 6 | certificate of registration is or has been named as the owner, | ||||||
| 7 | a partner, a manager or member of a limited liability company, | ||||||
| 8 | or a corporate officer on the application for the certificate | ||||||
| 9 | of registration of another retailer that (i) is in default for | ||||||
| 10 | moneys due under this Act or any other tax or fee Act | ||||||
| 11 | administered by the Department or (ii) fails to file any | ||||||
| 12 | return, on or before the due date prescribed for filing that | ||||||
| 13 | return (including any extensions of time granted by the | ||||||
| 14 | Department), that the retailer is required to file under this | ||||||
| 15 | Act or any other tax or fee Act administered by the Department. | ||||||
| 16 | For purposes of this paragraph only, in determining whether a | ||||||
| 17 | person is in default for moneys due, the Department shall | ||||||
| 18 | include only amounts established as a final liability within | ||||||
| 19 | the 23 years prior to the date of the Department's notice of | ||||||
| 20 | denial of a certificate of registration. | ||||||
| 21 | The Department may require an applicant for a certificate | ||||||
| 22 | of registration hereunder to, at the time of filing such | ||||||
| 23 | application, furnish a bond from a surety company authorized | ||||||
| 24 | to do business in the State of Illinois, or an irrevocable bank | ||||||
| 25 | letter of credit or a bond signed by 2 personal sureties who | ||||||
| 26 | have filed, with the Department, sworn statements disclosing | ||||||
| |||||||
| |||||||
| 1 | net assets equal to at least 3 times the amount of the bond to | ||||||
| 2 | be required of such applicant, or a bond secured by an | ||||||
| 3 | assignment of a bank account or certificate of deposit, stocks | ||||||
| 4 | or bonds, conditioned upon the applicant paying to the State | ||||||
| 5 | of Illinois all moneys becoming due under this Act and under | ||||||
| 6 | any other State tax law or municipal or county tax ordinance or | ||||||
| 7 | resolution under which the certificate of registration that is | ||||||
| 8 | issued to the applicant under this Act will permit the | ||||||
| 9 | applicant to engage in business without registering separately | ||||||
| 10 | under such other law, ordinance or resolution. In making a | ||||||
| 11 | determination as to whether to require a bond or other | ||||||
| 12 | security, the Department shall take into consideration whether | ||||||
| 13 | the owner, any partner, any manager or member of a limited | ||||||
| 14 | liability company, or a corporate officer of the applicant is | ||||||
| 15 | or has been the owner, a partner, a manager or member of a | ||||||
| 16 | limited liability company, or a corporate officer of another | ||||||
| 17 | retailer that is in default for moneys due under this Act or | ||||||
| 18 | any other tax or fee Act administered by the Department; and | ||||||
| 19 | whether the owner, any partner, any manager or member of a | ||||||
| 20 | limited liability company, or a corporate officer of the | ||||||
| 21 | applicant is or has been the owner, a partner, a manager or | ||||||
| 22 | member of a limited liability company, or a corporate officer | ||||||
| 23 | of another retailer whose certificate of registration has been | ||||||
| 24 | revoked within the previous 5 years under this Act or any other | ||||||
| 25 | tax or fee Act administered by the Department. If a bond or | ||||||
| 26 | other security is required, the Department shall fix the | ||||||
| |||||||
| |||||||
| 1 | amount of the bond or other security, taking into | ||||||
| 2 | consideration the amount of money expected to become due from | ||||||
| 3 | the applicant under this Act and under any other State tax law | ||||||
| 4 | or municipal or county tax ordinance or resolution under which | ||||||
| 5 | the certificate of registration that is issued to the | ||||||
| 6 | applicant under this Act will permit the applicant to engage | ||||||
| 7 | in business without registering separately under such other | ||||||
| 8 | law, ordinance, or resolution. The amount of security required | ||||||
| 9 | by the Department shall be such as, in its opinion, will | ||||||
| 10 | protect the State of Illinois against failure to pay the | ||||||
| 11 | amount which may become due from the applicant under this Act | ||||||
| 12 | and under any other State tax law or municipal or county tax | ||||||
| 13 | ordinance or resolution under which the certificate of | ||||||
| 14 | registration that is issued to the applicant under this Act | ||||||
| 15 | will permit the applicant to engage in business without | ||||||
| 16 | registering separately under such other law, ordinance or | ||||||
| 17 | resolution, but the amount of the security required by the | ||||||
| 18 | Department shall not exceed three times the amount of the | ||||||
| 19 | applicant's average monthly tax liability, or $50,000.00, | ||||||
| 20 | whichever amount is lower. | ||||||
| 21 | No certificate of registration under this Act shall be | ||||||
| 22 | issued by the Department until the applicant provides the | ||||||
| 23 | Department with satisfactory security, if required, as herein | ||||||
| 24 | provided for. | ||||||
| 25 | Upon receipt of the application for certificate of | ||||||
| 26 | registration in proper form, and upon approval by the | ||||||
| |||||||
| |||||||
| 1 | Department of the security furnished by the applicant, if | ||||||
| 2 | required, the Department shall issue to such applicant a | ||||||
| 3 | certificate of registration which shall permit the person to | ||||||
| 4 | whom it is issued to engage in the business of selling tangible | ||||||
| 5 | personal property at retail in this State. The certificate of | ||||||
| 6 | registration shall be conspicuously displayed at the place of | ||||||
| 7 | business which the person so registered states in his | ||||||
| 8 | application to be the principal place of business from which | ||||||
| 9 | he engages in the business of selling tangible personal | ||||||
| 10 | property at retail in this State. | ||||||
| 11 | No certificate of registration issued prior to July 1, | ||||||
| 12 | 2017 to a taxpayer who files returns required by this Act on a | ||||||
| 13 | monthly basis or renewed prior to July 1, 2017 by a taxpayer | ||||||
| 14 | who files returns required by this Act on a monthly basis shall | ||||||
| 15 | be valid after the expiration of 5 years from the date of its | ||||||
| 16 | issuance or last renewal. No certificate of registration | ||||||
| 17 | issued on or after July 1, 2017 to a taxpayer who files returns | ||||||
| 18 | required by this Act on a monthly basis or renewed on or after | ||||||
| 19 | July 1, 2017 by a taxpayer who files returns required by this | ||||||
| 20 | Act on a monthly basis shall be valid after the expiration of | ||||||
| 21 | one year from the date of its issuance or last renewal. The | ||||||
| 22 | expiration date of a sub-certificate of registration shall be | ||||||
| 23 | that of the certificate of registration to which the | ||||||
| 24 | sub-certificate relates. Prior to July 1, 2017, a certificate | ||||||
| 25 | of registration shall automatically be renewed, subject to | ||||||
| 26 | revocation as provided by this Act, for an additional 5 years | ||||||
| |||||||
| |||||||
| 1 | from the date of its expiration unless otherwise notified by | ||||||
| 2 | the Department as provided by this paragraph. On and after | ||||||
| 3 | July 1, 2017, a certificate of registration shall | ||||||
| 4 | automatically be renewed, subject to revocation as provided by | ||||||
| 5 | this Act, for an additional one year from the date of its | ||||||
| 6 | expiration unless otherwise notified by the Department as | ||||||
| 7 | provided by this paragraph. | ||||||
| 8 | Where a taxpayer to whom a certificate of registration is | ||||||
| 9 | issued under this Act is in default to the State of Illinois | ||||||
| 10 | for delinquent returns or for moneys due under this Act or any | ||||||
| 11 | other State tax law or municipal or county ordinance | ||||||
| 12 | administered or enforced by the Department, the Department | ||||||
| 13 | shall, not less than 60 days before the expiration date of such | ||||||
| 14 | certificate of registration, give notice to the taxpayer to | ||||||
| 15 | whom the certificate was issued of the account period of the | ||||||
| 16 | delinquent returns, the amount of tax, penalty and interest | ||||||
| 17 | due and owing from the taxpayer, and that the certificate of | ||||||
| 18 | registration shall not be automatically renewed upon its | ||||||
| 19 | expiration date unless the taxpayer, on or before the date of | ||||||
| 20 | expiration, has filed and paid the delinquent returns or paid | ||||||
| 21 | the defaulted amount in full. A taxpayer to whom such a notice | ||||||
| 22 | is issued shall be deemed an applicant for renewal. The | ||||||
| 23 | Department shall promulgate regulations establishing | ||||||
| 24 | procedures for taxpayers who file returns on a monthly basis | ||||||
| 25 | but desire and qualify to change to a quarterly or yearly | ||||||
| 26 | filing basis and will no longer be subject to renewal under | ||||||
| |||||||
| |||||||
| 1 | this Section, and for taxpayers who file returns on a yearly or | ||||||
| 2 | quarterly basis but who desire or are required to change to a | ||||||
| 3 | monthly filing basis and will be subject to renewal under this | ||||||
| 4 | Section. | ||||||
| 5 | The Department may in its discretion approve renewal by an | ||||||
| 6 | applicant who is in default if, at the time of application for | ||||||
| 7 | renewal, the applicant files all of the delinquent returns or | ||||||
| 8 | pays to the Department such percentage of the defaulted amount | ||||||
| 9 | as may be determined by the Department and agrees in writing to | ||||||
| 10 | waive all limitations upon the Department for collection of | ||||||
| 11 | the remaining defaulted amount to the Department over a period | ||||||
| 12 | not to exceed 5 years from the date of renewal of the | ||||||
| 13 | certificate; however, no renewal application submitted by an | ||||||
| 14 | applicant who is in default shall be approved if the | ||||||
| 15 | immediately preceding renewal by the applicant was conditioned | ||||||
| 16 | upon the installment payment agreement described in this | ||||||
| 17 | Section. The payment agreement herein provided for shall be in | ||||||
| 18 | addition to and not in lieu of the security that may be | ||||||
| 19 | required by this Section of a taxpayer who is no longer | ||||||
| 20 | considered a prior continuous compliance taxpayer. The | ||||||
| 21 | execution of the payment agreement as provided in this Act | ||||||
| 22 | shall not toll the accrual of interest at the statutory rate. | ||||||
| 23 | The Department may suspend a certificate of registration | ||||||
| 24 | if the Department finds that the person to whom the | ||||||
| 25 | certificate of registration has been issued knowingly sold | ||||||
| 26 | contraband cigarettes. | ||||||
| |||||||
| |||||||
| 1 | A certificate of registration issued under this Act more | ||||||
| 2 | than 5 years before January 1, 1990 (the effective date of | ||||||
| 3 | Public Act 86-383) shall expire and be subject to the renewal | ||||||
| 4 | provisions of this Section on the next anniversary of the date | ||||||
| 5 | of issuance of such certificate which occurs more than 6 | ||||||
| 6 | months after January 1, 1990 (the effective date of Public Act | ||||||
| 7 | 86-383). A certificate of registration issued less than 5 | ||||||
| 8 | years before January 1, 1990 (the effective date of Public Act | ||||||
| 9 | 86-383) shall expire and be subject to the renewal provisions | ||||||
| 10 | of this Section on the 5th anniversary of the issuance of the | ||||||
| 11 | certificate. | ||||||
| 12 | If the person so registered states that he operates other | ||||||
| 13 | places of business from which he engages in the business of | ||||||
| 14 | selling tangible personal property at retail in this State, | ||||||
| 15 | the Department shall furnish him with a sub-certificate of | ||||||
| 16 | registration for each such place of business, and the | ||||||
| 17 | applicant shall display the appropriate sub-certificate of | ||||||
| 18 | registration at each such place of business. All | ||||||
| 19 | sub-certificates of registration shall bear the same | ||||||
| 20 | registration number as that appearing upon the certificate of | ||||||
| 21 | registration to which such sub-certificates relate. | ||||||
| 22 | If the applicant will sell tangible personal property at | ||||||
| 23 | retail through vending machines, the Department shall furnish | ||||||
| 24 | him with a sub-certificate of registration for each such | ||||||
| 25 | vending machine, and the applicant shall display the | ||||||
| 26 | appropriate sub-certificate of registration on each such | ||||||
| |||||||
| |||||||
| 1 | vending machine by attaching the sub-certificate of | ||||||
| 2 | registration to a conspicuous part of such vending machine. If | ||||||
| 3 | a person who is registered to sell tangible personal property | ||||||
| 4 | at retail through vending machines adds an additional vending | ||||||
| 5 | machine or additional vending machines to the number of | ||||||
| 6 | vending machines he or she uses in his or her business of | ||||||
| 7 | selling tangible personal property at retail, he or she shall | ||||||
| 8 | notify the Department, on a form prescribed by the Department, | ||||||
| 9 | to request an additional sub-certificate or additional | ||||||
| 10 | sub-certificates of registration, as applicable. With each | ||||||
| 11 | such request, the applicant shall report the number of | ||||||
| 12 | sub-certificates of registration he or she is requesting as | ||||||
| 13 | well as the total number of vending machines from which he or | ||||||
| 14 | she makes retail sales. | ||||||
| 15 | Where the same person engages in 2 or more businesses of | ||||||
| 16 | selling tangible personal property at retail in this State, | ||||||
| 17 | which businesses are substantially different in character or | ||||||
| 18 | engaged in under different trade names or engaged in under | ||||||
| 19 | other substantially dissimilar circumstances (so that it is | ||||||
| 20 | more practicable, from an accounting, auditing or bookkeeping | ||||||
| 21 | standpoint, for such businesses to be separately registered), | ||||||
| 22 | the Department may require or permit such person (subject to | ||||||
| 23 | the same requirements concerning the furnishing of security as | ||||||
| 24 | those that are provided for hereinbefore in this Section as to | ||||||
| 25 | each application for a certificate of registration) to apply | ||||||
| 26 | for and obtain a separate certificate of registration for each | ||||||
| |||||||
| |||||||
| 1 | such business or for any of such businesses, under a single | ||||||
| 2 | certificate of registration supplemented by related | ||||||
| 3 | sub-certificates of registration. | ||||||
| 4 | Any person who is registered under the Retailers' | ||||||
| 5 | Occupation Tax Act as of March 8, 1963, and who, during the | ||||||
| 6 | 3-year period immediately prior to March 8, 1963, or during a | ||||||
| 7 | continuous 3-year period part of which passed immediately | ||||||
| 8 | before and the remainder of which passes immediately after | ||||||
| 9 | March 8, 1963, has been so registered continuously and who is | ||||||
| 10 | determined by the Department not to have been either | ||||||
| 11 | delinquent or deficient in the payment of tax liability during | ||||||
| 12 | that period under this Act or under any other State tax law or | ||||||
| 13 | municipal or county tax ordinance or resolution under which | ||||||
| 14 | the certificate of registration that is issued to the | ||||||
| 15 | registrant under this Act will permit the registrant to engage | ||||||
| 16 | in business without registering separately under such other | ||||||
| 17 | law, ordinance or resolution, shall be considered to be a | ||||||
| 18 | Prior Continuous Compliance taxpayer. Also any taxpayer who | ||||||
| 19 | has, as verified by the Department, faithfully and | ||||||
| 20 | continuously complied with the condition of his bond or other | ||||||
| 21 | security under the provisions of this Act for a period of 3 | ||||||
| 22 | consecutive years shall be considered to be a Prior Continuous | ||||||
| 23 | Compliance taxpayer. | ||||||
| 24 | Every Prior Continuous Compliance taxpayer shall be exempt | ||||||
| 25 | from all requirements under this Act concerning the furnishing | ||||||
| 26 | of a bond or other security as a condition precedent to his | ||||||
| |||||||
| |||||||
| 1 | being authorized to engage in the business of selling tangible | ||||||
| 2 | personal property at retail in this State. This exemption | ||||||
| 3 | shall continue for each such taxpayer until such time as he may | ||||||
| 4 | be determined by the Department to be delinquent in the filing | ||||||
| 5 | of any returns, or is determined by the Department (either | ||||||
| 6 | through the Department's issuance of a final assessment which | ||||||
| 7 | has become final under the Act, or by the taxpayer's filing of | ||||||
| 8 | a return which admits tax that is not paid to be due) to be | ||||||
| 9 | delinquent or deficient in the paying of any tax under this Act | ||||||
| 10 | or under any other State tax law or municipal or county tax | ||||||
| 11 | ordinance or resolution under which the certificate of | ||||||
| 12 | registration that is issued to the registrant under this Act | ||||||
| 13 | will permit the registrant to engage in business without | ||||||
| 14 | registering separately under such other law, ordinance or | ||||||
| 15 | resolution, at which time that taxpayer shall become subject | ||||||
| 16 | to all the financial responsibility requirements of this Act | ||||||
| 17 | and, as a condition of being allowed to continue to engage in | ||||||
| 18 | the business of selling tangible personal property at retail, | ||||||
| 19 | may be required to post bond or other acceptable security with | ||||||
| 20 | the Department covering liability which such taxpayer may | ||||||
| 21 | thereafter incur. Any taxpayer who fails to pay an admitted or | ||||||
| 22 | established liability under this Act may also be required to | ||||||
| 23 | post bond or other acceptable security with this Department | ||||||
| 24 | guaranteeing the payment of such admitted or established | ||||||
| 25 | liability. | ||||||
| 26 | No certificate of registration shall be issued to any | ||||||
| |||||||
| |||||||
| 1 | person who is in default to the State of Illinois for moneys | ||||||
| 2 | due under this Act or under any other State tax law or | ||||||
| 3 | municipal or county tax ordinance or resolution under which | ||||||
| 4 | the certificate of registration that is issued to the | ||||||
| 5 | applicant under this Act will permit the applicant to engage | ||||||
| 6 | in business without registering separately under such other | ||||||
| 7 | law, ordinance or resolution. | ||||||
| 8 | Any person aggrieved by any decision of the Department | ||||||
| 9 | under this Section may, within 20 days after notice of such | ||||||
| 10 | decision, protest and request a hearing, whereupon the | ||||||
| 11 | Department shall give notice to such person of the time and | ||||||
| 12 | place fixed for such hearing and shall hold a hearing in | ||||||
| 13 | conformity with the provisions of this Act and then issue its | ||||||
| 14 | final administrative decision in the matter to such person. In | ||||||
| 15 | the absence of such a protest within 20 days, the Department's | ||||||
| 16 | decision shall become final without any further determination | ||||||
| 17 | being made or notice given. | ||||||
| 18 | With respect to security other than bonds (upon which the | ||||||
| 19 | Department may sue in the event of a forfeiture), if the | ||||||
| 20 | taxpayer fails to pay, when due, any amount whose payment such | ||||||
| 21 | security guarantees, the Department shall, after such | ||||||
| 22 | liability is admitted by the taxpayer or established by the | ||||||
| 23 | Department through the issuance of a final assessment that has | ||||||
| 24 | become final under the law, convert the security which that | ||||||
| 25 | taxpayer has furnished into money for the State, after first | ||||||
| 26 | giving the taxpayer at least 10 days' written notice, by | ||||||
| |||||||
| |||||||
| 1 | registered or certified mail, to pay the liability or forfeit | ||||||
| 2 | such security to the Department. If the security consists of | ||||||
| 3 | stocks or bonds or other securities which are listed on a | ||||||
| 4 | public exchange, the Department shall sell such securities | ||||||
| 5 | through such public exchange. If the security consists of an | ||||||
| 6 | irrevocable bank letter of credit, the Department shall | ||||||
| 7 | convert the security in the manner provided for in the Uniform | ||||||
| 8 | Commercial Code. If the security consists of a bank | ||||||
| 9 | certificate of deposit, the Department shall convert the | ||||||
| 10 | security into money by demanding and collecting the amount of | ||||||
| 11 | such bank certificate of deposit from the bank which issued | ||||||
| 12 | such certificate. If the security consists of a type of stocks | ||||||
| 13 | or other securities which are not listed on a public exchange, | ||||||
| 14 | the Department shall sell such security to the highest and | ||||||
| 15 | best bidder after giving at least 10 days' notice of the date, | ||||||
| 16 | time and place of the intended sale by publication in the | ||||||
| 17 | "State Official Newspaper". If the Department realizes more | ||||||
| 18 | than the amount of such liability from the security, plus the | ||||||
| 19 | expenses incurred by the Department in converting the security | ||||||
| 20 | into money, the Department shall pay such excess to the | ||||||
| 21 | taxpayer who furnished such security, and the balance shall be | ||||||
| 22 | paid into the State Treasury. | ||||||
| 23 | The Department shall discharge any surety and shall | ||||||
| 24 | release and return any security deposited, assigned, pledged | ||||||
| 25 | or otherwise provided to it by a taxpayer under this Section | ||||||
| 26 | within 30 days after: | ||||||
| |||||||
| |||||||
| 1 | (1) such taxpayer becomes a Prior Continuous | ||||||
| 2 | Compliance taxpayer; or | ||||||
| 3 | (2) such taxpayer has ceased to collect receipts on | ||||||
| 4 | which he is required to remit tax to the Department, has | ||||||
| 5 | filed a final tax return, and has paid to the Department an | ||||||
| 6 | amount sufficient to discharge his remaining tax | ||||||
| 7 | liability, as determined by the Department, under this Act | ||||||
| 8 | and under every other State tax law or municipal or county | ||||||
| 9 | tax ordinance or resolution under which the certificate of | ||||||
| 10 | registration issued under this Act permits the registrant | ||||||
| 11 | to engage in business without registering separately under | ||||||
| 12 | such other law, ordinance or resolution. The Department | ||||||
| 13 | shall make a final determination of the taxpayer's | ||||||
| 14 | outstanding tax liability as expeditiously as possible | ||||||
| 15 | after his final tax return has been filed; if the | ||||||
| 16 | Department cannot make such final determination within 45 | ||||||
| 17 | days after receiving the final tax return, within such | ||||||
| 18 | period it shall so notify the taxpayer, stating its | ||||||
| 19 | reasons therefor. | ||||||
| 20 | (Source: P.A. 102-40, eff. 6-25-21; 103-319, eff. 1-1-24.)
| ||||||
| 21 | (35 ILCS 120/2c) (from Ch. 120, par. 441c) | ||||||
| 22 | Sec. 2c. Resales of tangible personal property. If the | ||||||
| 23 | purchaser is not registered with the Department as a taxpayer, | ||||||
| 24 | but claims to be a reseller of the tangible personal property | ||||||
| 25 | in such a way that such resales are not taxable under this Act | ||||||
| |||||||
| |||||||
| 1 | or under some other tax law which the Department may | ||||||
| 2 | administer, such purchaser (except in the case of an | ||||||
| 3 | out-of-State purchaser who will always resell and deliver the | ||||||
| 4 | property to his customers outside Illinois) shall apply to the | ||||||
| 5 | Department for a resale number. Such applicant shall state | ||||||
| 6 | facts which will show the Department why such applicant is not | ||||||
| 7 | liable for tax under this Act or under some other tax law which | ||||||
| 8 | the Department may administer on any of his resales and shall | ||||||
| 9 | furnish such additional information as the Department may | ||||||
| 10 | reasonably require. | ||||||
| 11 | Upon approval of the application, the Department shall | ||||||
| 12 | assign a resale number to the applicant and shall certify such | ||||||
| 13 | number to him. The Department may cancel any such number which | ||||||
| 14 | is obtained through misrepresentation, or which is used to | ||||||
| 15 | make a purchase tax-free when the purchase in fact is not a | ||||||
| 16 | purchase for resale, or which no longer applies because of the | ||||||
| 17 | purchaser's having discontinued the making of tax exempt | ||||||
| 18 | resales of the property. | ||||||
| 19 | The Department may restrict the use of the number to one | ||||||
| 20 | year at a time or to some other definite period if the | ||||||
| 21 | Department finds it impracticable or otherwise inadvisable to | ||||||
| 22 | issue such numbers for indefinite periods. | ||||||
| 23 | Except as provided hereinabove in this Section, a sale | ||||||
| 24 | shall be made tax-free on the ground of being a sale for resale | ||||||
| 25 | if the purchaser has an active registration number or resale | ||||||
| 26 | number from the Department and furnishes that number to the | ||||||
| |||||||
| |||||||
| 1 | seller in connection with certifying to the seller that any | ||||||
| 2 | sale to such purchaser is nontaxable because of being a sale | ||||||
| 3 | for resale. On and after January 1, 2025, a sale to a lessor of | ||||||
| 4 | tangible personal property who is subject to the tax on leases | ||||||
| 5 | implemented by this amendatory Act of the 103rd General | ||||||
| 6 | Assembly, for the purpose of leasing that property, shall be | ||||||
| 7 | made tax-free on the ground of being a sale for resale, | ||||||
| 8 | provided the other provisions of this paragraph are met. | ||||||
| 9 | Failure to present an active registration number or resale | ||||||
| 10 | number and a certification to the seller that a sale is for | ||||||
| 11 | resale creates a presumption that a sale is not for resale. | ||||||
| 12 | This presumption may be rebutted by other evidence that all of | ||||||
| 13 | the seller's sales are sale for resale, or that a particular | ||||||
| 14 | sale is a sale for resale. | ||||||
| 15 | (Source: P.A. 83-1463.)
| ||||||
| 16 | (35 ILCS 120/3) (from Ch. 120, par. 442) | ||||||
| 17 | Sec. 3. Except as provided in this Section, on or before | ||||||
| 18 | the twentieth day of each calendar month, every person engaged | ||||||
| 19 | in the business of selling, which, on and after January 1, | ||||||
| 20 | 2025, includes leasing, tangible personal property at retail | ||||||
| 21 | in this State during the preceding calendar month shall file a | ||||||
| 22 | return with the Department, stating: | ||||||
| 23 | 1. The name of the seller; | ||||||
| 24 | 2. His residence address and the address of his | ||||||
| 25 | principal place of business and the address of the | ||||||
| |||||||
| |||||||
| 1 | principal place of business (if that is a different | ||||||
| 2 | address) from which he engages in the business of selling | ||||||
| 3 | tangible personal property at retail in this State; | ||||||
| 4 | 3. Total amount of receipts received by him during the | ||||||
| 5 | preceding calendar month or quarter, as the case may be, | ||||||
| 6 | from sales of tangible personal property, and from | ||||||
| 7 | services furnished, by him during such preceding calendar | ||||||
| 8 | month or quarter; | ||||||
| 9 | 4. Total amount received by him during the preceding | ||||||
| 10 | calendar month or quarter on charge and time sales of | ||||||
| 11 | tangible personal property, and from services furnished, | ||||||
| 12 | by him prior to the month or quarter for which the return | ||||||
| 13 | is filed; | ||||||
| 14 | 5. Deductions allowed by law; | ||||||
| 15 | 6. Gross receipts which were received by him during | ||||||
| 16 | the preceding calendar month or quarter and upon the basis | ||||||
| 17 | of which the tax is imposed, including gross receipts on | ||||||
| 18 | food for human consumption that is to be consumed off the | ||||||
| 19 | premises where it is sold (other than alcoholic beverages, | ||||||
| 20 | food consisting of or infused with adult use cannabis, | ||||||
| 21 | soft drinks, and food that has been prepared for immediate | ||||||
| 22 | consumption) which were received during the preceding | ||||||
| 23 | calendar month or quarter and upon which tax would have | ||||||
| 24 | been due but for the 0% rate imposed under Public Act | ||||||
| 25 | 102-700; | ||||||
| 26 | 7. The amount of credit provided in Section 2d of this | ||||||
| |||||||
| |||||||
| 1 | Act; | ||||||
| 2 | 8. The amount of tax due, including the amount of tax | ||||||
| 3 | that would have been due on food for human consumption | ||||||
| 4 | that is to be consumed off the premises where it is sold | ||||||
| 5 | (other than alcoholic beverages, food consisting of or | ||||||
| 6 | infused with adult use cannabis, soft drinks, and food | ||||||
| 7 | that has been prepared for immediate consumption) but for | ||||||
| 8 | the 0% rate imposed under Public Act 102-700; | ||||||
| 9 | 9. The signature of the taxpayer; and | ||||||
| 10 | 10. Such other reasonable information as the | ||||||
| 11 | Department may require. | ||||||
| 12 | In the case of leases, except as otherwise provided in | ||||||
| 13 | this Act, the lessor must remit for each tax return period only | ||||||
| 14 | the tax applicable to that part of the selling price actually | ||||||
| 15 | received during such tax return period. | ||||||
| 16 | On and after January 1, 2018, except for returns required | ||||||
| 17 | to be filed prior to January 1, 2023 for motor vehicles, | ||||||
| 18 | watercraft, aircraft, and trailers that are required to be | ||||||
| 19 | registered with an agency of this State, with respect to | ||||||
| 20 | retailers whose annual gross receipts average $20,000 or more, | ||||||
| 21 | all returns required to be filed pursuant to this Act shall be | ||||||
| 22 | filed electronically. On and after January 1, 2023, with | ||||||
| 23 | respect to retailers whose annual gross receipts average | ||||||
| 24 | $20,000 or more, all returns required to be filed pursuant to | ||||||
| 25 | this Act, including, but not limited to, returns for motor | ||||||
| 26 | vehicles, watercraft, aircraft, and trailers that are required | ||||||
| |||||||
| |||||||
| 1 | to be registered with an agency of this State, shall be filed | ||||||
| 2 | electronically. Retailers who demonstrate that they do not | ||||||
| 3 | have access to the Internet or demonstrate hardship in filing | ||||||
| 4 | electronically may petition the Department to waive the | ||||||
| 5 | electronic filing requirement. | ||||||
| 6 | If a taxpayer fails to sign a return within 30 days after | ||||||
| 7 | the proper notice and demand for signature by the Department, | ||||||
| 8 | the return shall be considered valid and any amount shown to be | ||||||
| 9 | due on the return shall be deemed assessed. | ||||||
| 10 | Each return shall be accompanied by the statement of | ||||||
| 11 | prepaid tax issued pursuant to Section 2e for which credit is | ||||||
| 12 | claimed. | ||||||
| 13 | Prior to October 1, 2003, and on and after September 1, | ||||||
| 14 | 2004, a retailer may accept a Manufacturer's Purchase Credit | ||||||
| 15 | certification from a purchaser in satisfaction of Use Tax as | ||||||
| 16 | provided in Section 3-85 of the Use Tax Act if the purchaser | ||||||
| 17 | provides the appropriate documentation as required by Section | ||||||
| 18 | 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit | ||||||
| 19 | certification, accepted by a retailer prior to October 1, 2003 | ||||||
| 20 | and on and after September 1, 2004 as provided in Section 3-85 | ||||||
| 21 | of the Use Tax Act, may be used by that retailer to satisfy | ||||||
| 22 | Retailers' Occupation Tax liability in the amount claimed in | ||||||
| 23 | the certification, not to exceed 6.25% of the receipts subject | ||||||
| 24 | to tax from a qualifying purchase. A Manufacturer's Purchase | ||||||
| 25 | Credit reported on any original or amended return filed under | ||||||
| 26 | this Act after October 20, 2003 for reporting periods prior to | ||||||
| |||||||
| |||||||
| 1 | September 1, 2004 shall be disallowed. Manufacturer's Purchase | ||||||
| 2 | Credit reported on annual returns due on or after January 1, | ||||||
| 3 | 2005 will be disallowed for periods prior to September 1, | ||||||
| 4 | 2004. No Manufacturer's Purchase Credit may be used after | ||||||
| 5 | September 30, 2003 through August 31, 2004 to satisfy any tax | ||||||
| 6 | liability imposed under this Act, including any audit | ||||||
| 7 | liability. | ||||||
| 8 | Beginning on July 1, 2023 and through December 31, 2032, a | ||||||
| 9 | retailer may accept a Sustainable Aviation Fuel Purchase | ||||||
| 10 | Credit certification from an air common carrier-purchaser in | ||||||
| 11 | satisfaction of Use Tax on aviation fuel as provided in | ||||||
| 12 | Section 3-87 of the Use Tax Act if the purchaser provides the | ||||||
| 13 | appropriate documentation as required by Section 3-87 of the | ||||||
| 14 | Use Tax Act. A Sustainable Aviation Fuel Purchase Credit | ||||||
| 15 | certification accepted by a retailer in accordance with this | ||||||
| 16 | paragraph may be used by that retailer to satisfy Retailers' | ||||||
| 17 | Occupation Tax liability (but not in satisfaction of penalty | ||||||
| 18 | or interest) in the amount claimed in the certification, not | ||||||
| 19 | to exceed 6.25% of the receipts subject to tax from a sale of | ||||||
| 20 | aviation fuel. In addition, for a sale of aviation fuel to | ||||||
| 21 | qualify to earn the Sustainable Aviation Fuel Purchase Credit, | ||||||
| 22 | retailers must retain in their books and records a | ||||||
| 23 | certification from the producer of the aviation fuel that the | ||||||
| 24 | aviation fuel sold by the retailer and for which a sustainable | ||||||
| 25 | aviation fuel purchase credit was earned meets the definition | ||||||
| 26 | of sustainable aviation fuel under Section 3-87 of the Use Tax | ||||||
| |||||||
| |||||||
| 1 | Act. The documentation must include detail sufficient for the | ||||||
| 2 | Department to determine the number of gallons of sustainable | ||||||
| 3 | aviation fuel sold. | ||||||
| 4 | The Department may require returns to be filed on a | ||||||
| 5 | quarterly basis. If so required, a return for each calendar | ||||||
| 6 | quarter shall be filed on or before the twentieth day of the | ||||||
| 7 | calendar month following the end of such calendar quarter. The | ||||||
| 8 | taxpayer shall also file a return with the Department for each | ||||||
| 9 | of the first 2 two months of each calendar quarter, on or | ||||||
| 10 | before the twentieth day of the following calendar month, | ||||||
| 11 | stating: | ||||||
| 12 | 1. The name of the seller; | ||||||
| 13 | 2. The address of the principal place of business from | ||||||
| 14 | which he engages in the business of selling tangible | ||||||
| 15 | personal property at retail in this State; | ||||||
| 16 | 3. The total amount of taxable receipts received by | ||||||
| 17 | him during the preceding calendar month from sales of | ||||||
| 18 | tangible personal property by him during such preceding | ||||||
| 19 | calendar month, including receipts from charge and time | ||||||
| 20 | sales, but less all deductions allowed by law; | ||||||
| 21 | 4. The amount of credit provided in Section 2d of this | ||||||
| 22 | Act; | ||||||
| 23 | 5. The amount of tax due; and | ||||||
| 24 | 6. Such other reasonable information as the Department | ||||||
| 25 | may require. | ||||||
| 26 | Every person engaged in the business of selling aviation | ||||||
| |||||||
| |||||||
| 1 | fuel at retail in this State during the preceding calendar | ||||||
| 2 | month shall, instead of reporting and paying tax as otherwise | ||||||
| 3 | required by this Section, report and pay such tax on a separate | ||||||
| 4 | aviation fuel tax return. The requirements related to the | ||||||
| 5 | return shall be as otherwise provided in this Section. | ||||||
| 6 | Notwithstanding any other provisions of this Act to the | ||||||
| 7 | contrary, retailers selling aviation fuel shall file all | ||||||
| 8 | aviation fuel tax returns and shall make all aviation fuel tax | ||||||
| 9 | payments by electronic means in the manner and form required | ||||||
| 10 | by the Department. For purposes of this Section, "aviation | ||||||
| 11 | fuel" means jet fuel and aviation gasoline. | ||||||
| 12 | Beginning on October 1, 2003, any person who is not a | ||||||
| 13 | licensed distributor, importing distributor, or manufacturer, | ||||||
| 14 | as defined in the Liquor Control Act of 1934, but is engaged in | ||||||
| 15 | the business of selling, at retail, alcoholic liquor shall | ||||||
| 16 | file a statement with the Department of Revenue, in a format | ||||||
| 17 | and at a time prescribed by the Department, showing the total | ||||||
| 18 | amount paid for alcoholic liquor purchased during the | ||||||
| 19 | preceding month and such other information as is reasonably | ||||||
| 20 | required by the Department. The Department may adopt rules to | ||||||
| 21 | require that this statement be filed in an electronic or | ||||||
| 22 | telephonic format. Such rules may provide for exceptions from | ||||||
| 23 | the filing requirements of this paragraph. For the purposes of | ||||||
| 24 | this paragraph, the term "alcoholic liquor" shall have the | ||||||
| 25 | meaning prescribed in the Liquor Control Act of 1934. | ||||||
| 26 | Beginning on October 1, 2003, every distributor, importing | ||||||
| |||||||
| |||||||
| 1 | distributor, and manufacturer of alcoholic liquor as defined | ||||||
| 2 | in the Liquor Control Act of 1934, shall file a statement with | ||||||
| 3 | the Department of Revenue, no later than the 10th day of the | ||||||
| 4 | month for the preceding month during which transactions | ||||||
| 5 | occurred, by electronic means, showing the total amount of | ||||||
| 6 | gross receipts from the sale of alcoholic liquor sold or | ||||||
| 7 | distributed during the preceding month to purchasers; | ||||||
| 8 | identifying the purchaser to whom it was sold or distributed; | ||||||
| 9 | the purchaser's tax registration number; and such other | ||||||
| 10 | information reasonably required by the Department. A | ||||||
| 11 | distributor, importing distributor, or manufacturer of | ||||||
| 12 | alcoholic liquor must personally deliver, mail, or provide by | ||||||
| 13 | electronic means to each retailer listed on the monthly | ||||||
| 14 | statement a report containing a cumulative total of that | ||||||
| 15 | distributor's, importing distributor's, or manufacturer's | ||||||
| 16 | total sales of alcoholic liquor to that retailer no later than | ||||||
| 17 | the 10th day of the month for the preceding month during which | ||||||
| 18 | the transaction occurred. The distributor, importing | ||||||
| 19 | distributor, or manufacturer shall notify the retailer as to | ||||||
| 20 | the method by which the distributor, importing distributor, or | ||||||
| 21 | manufacturer will provide the sales information. If the | ||||||
| 22 | retailer is unable to receive the sales information by | ||||||
| 23 | electronic means, the distributor, importing distributor, or | ||||||
| 24 | manufacturer shall furnish the sales information by personal | ||||||
| 25 | delivery or by mail. For purposes of this paragraph, the term | ||||||
| 26 | "electronic means" includes, but is not limited to, the use of | ||||||
| |||||||
| |||||||
| 1 | a secure Internet website, e-mail, or facsimile. | ||||||
| 2 | If a total amount of less than $1 is payable, refundable or | ||||||
| 3 | creditable, such amount shall be disregarded if it is less | ||||||
| 4 | than 50 cents and shall be increased to $1 if it is 50 cents or | ||||||
| 5 | more. | ||||||
| 6 | Notwithstanding any other provision of this Act to the | ||||||
| 7 | contrary, retailers subject to tax on cannabis shall file all | ||||||
| 8 | cannabis tax returns and shall make all cannabis tax payments | ||||||
| 9 | by electronic means in the manner and form required by the | ||||||
| 10 | Department. | ||||||
| 11 | Beginning October 1, 1993, a taxpayer who has an average | ||||||
| 12 | monthly tax liability of $150,000 or more shall make all | ||||||
| 13 | payments required by rules of the Department by electronic | ||||||
| 14 | funds transfer. Beginning October 1, 1994, a taxpayer who has | ||||||
| 15 | an average monthly tax liability of $100,000 or more shall | ||||||
| 16 | make all payments required by rules of the Department by | ||||||
| 17 | electronic funds transfer. Beginning October 1, 1995, a | ||||||
| 18 | taxpayer who has an average monthly tax liability of $50,000 | ||||||
| 19 | or more shall make all payments required by rules of the | ||||||
| 20 | Department by electronic funds transfer. Beginning October 1, | ||||||
| 21 | 2000, a taxpayer who has an annual tax liability of $200,000 or | ||||||
| 22 | more shall make all payments required by rules of the | ||||||
| 23 | Department by electronic funds transfer. The term "annual tax | ||||||
| 24 | liability" shall be the sum of the taxpayer's liabilities | ||||||
| 25 | under this Act, and under all other State and local occupation | ||||||
| 26 | and use tax laws administered by the Department, for the | ||||||
| |||||||
| |||||||
| 1 | immediately preceding calendar year. The term "average monthly | ||||||
| 2 | tax liability" shall be the sum of the taxpayer's liabilities | ||||||
| 3 | under this Act, and under all other State and local occupation | ||||||
| 4 | and use tax laws administered by the Department, for the | ||||||
| 5 | immediately preceding calendar year divided by 12. Beginning | ||||||
| 6 | on October 1, 2002, a taxpayer who has a tax liability in the | ||||||
| 7 | amount set forth in subsection (b) of Section 2505-210 of the | ||||||
| 8 | Department of Revenue Law shall make all payments required by | ||||||
| 9 | rules of the Department by electronic funds transfer. | ||||||
| 10 | Before August 1 of each year beginning in 1993, the | ||||||
| 11 | Department shall notify all taxpayers required to make | ||||||
| 12 | payments by electronic funds transfer. All taxpayers required | ||||||
| 13 | to make payments by electronic funds transfer shall make those | ||||||
| 14 | payments for a minimum of one year beginning on October 1. | ||||||
| 15 | Any taxpayer not required to make payments by electronic | ||||||
| 16 | funds transfer may make payments by electronic funds transfer | ||||||
| 17 | with the permission of the Department. | ||||||
| 18 | All taxpayers required to make payment by electronic funds | ||||||
| 19 | transfer and any taxpayers authorized to voluntarily make | ||||||
| 20 | payments by electronic funds transfer shall make those | ||||||
| 21 | payments in the manner authorized by the Department. | ||||||
| 22 | The Department shall adopt such rules as are necessary to | ||||||
| 23 | effectuate a program of electronic funds transfer and the | ||||||
| 24 | requirements of this Section. | ||||||
| 25 | Any amount which is required to be shown or reported on any | ||||||
| 26 | return or other document under this Act shall, if such amount | ||||||
| |||||||
| |||||||
| 1 | is not a whole-dollar amount, be increased to the nearest | ||||||
| 2 | whole-dollar amount in any case where the fractional part of a | ||||||
| 3 | dollar is 50 cents or more, and decreased to the nearest | ||||||
| 4 | whole-dollar amount where the fractional part of a dollar is | ||||||
| 5 | less than 50 cents. | ||||||
| 6 | If the retailer is otherwise required to file a monthly | ||||||
| 7 | return and if the retailer's average monthly tax liability to | ||||||
| 8 | the Department does not exceed $200, the Department may | ||||||
| 9 | authorize his returns to be filed on a quarter annual basis, | ||||||
| 10 | with the return for January, February, and March of a given | ||||||
| 11 | year being due by April 20 of such year; with the return for | ||||||
| 12 | April, May, and June of a given year being due by July 20 of | ||||||
| 13 | such year; with the return for July, August, and September of a | ||||||
| 14 | given year being due by October 20 of such year, and with the | ||||||
| 15 | return for October, November, and December of a given year | ||||||
| 16 | being due by January 20 of the following year. | ||||||
| 17 | If the retailer is otherwise required to file a monthly or | ||||||
| 18 | quarterly return and if the retailer's average monthly tax | ||||||
| 19 | liability with the Department does not exceed $50, the | ||||||
| 20 | Department may authorize his returns to be filed on an annual | ||||||
| 21 | basis, with the return for a given year being due by January 20 | ||||||
| 22 | of the following year. | ||||||
| 23 | Such quarter annual and annual returns, as to form and | ||||||
| 24 | substance, shall be subject to the same requirements as | ||||||
| 25 | monthly returns. | ||||||
| 26 | Notwithstanding any other provision in this Act concerning | ||||||
| |||||||
| |||||||
| 1 | the time within which a retailer may file his return, in the | ||||||
| 2 | case of any retailer who ceases to engage in a kind of business | ||||||
| 3 | which makes him responsible for filing returns under this Act, | ||||||
| 4 | such retailer shall file a final return under this Act with the | ||||||
| 5 | Department not more than one month after discontinuing such | ||||||
| 6 | business. | ||||||
| 7 | Where the same person has more than one business | ||||||
| 8 | registered with the Department under separate registrations | ||||||
| 9 | under this Act, such person may not file each return that is | ||||||
| 10 | due as a single return covering all such registered | ||||||
| 11 | businesses, but shall file separate returns for each such | ||||||
| 12 | registered business. | ||||||
| 13 | In addition, with respect to motor vehicles, watercraft, | ||||||
| 14 | aircraft, and trailers that are required to be registered with | ||||||
| 15 | an agency of this State, except as otherwise provided in this | ||||||
| 16 | Section, every retailer selling this kind of tangible personal | ||||||
| 17 | property shall file, with the Department, upon a form to be | ||||||
| 18 | prescribed and supplied by the Department, a separate return | ||||||
| 19 | for each such item of tangible personal property which the | ||||||
| 20 | retailer sells, except that if, in the same transaction, (i) a | ||||||
| 21 | retailer of aircraft, watercraft, motor vehicles, or trailers | ||||||
| 22 | transfers more than one aircraft, watercraft, motor vehicle, | ||||||
| 23 | or trailer to another aircraft, watercraft, motor vehicle | ||||||
| 24 | retailer, or trailer retailer for the purpose of resale or | ||||||
| 25 | (ii) a retailer of aircraft, watercraft, motor vehicles, or | ||||||
| 26 | trailers transfers more than one aircraft, watercraft, motor | ||||||
| |||||||
| |||||||
| 1 | vehicle, or trailer to a purchaser for use as a qualifying | ||||||
| 2 | rolling stock as provided in Section 2-5 of this Act, then that | ||||||
| 3 | seller may report the transfer of all aircraft, watercraft, | ||||||
| 4 | motor vehicles, or trailers involved in that transaction to | ||||||
| 5 | the Department on the same uniform invoice-transaction | ||||||
| 6 | reporting return form. For purposes of this Section, | ||||||
| 7 | "watercraft" means a Class 2, Class 3, or Class 4 watercraft as | ||||||
| 8 | defined in Section 3-2 of the Boat Registration and Safety | ||||||
| 9 | Act, a personal watercraft, or any boat equipped with an | ||||||
| 10 | inboard motor. | ||||||
| 11 | In addition, with respect to motor vehicles, watercraft, | ||||||
| 12 | aircraft, and trailers that are required to be registered with | ||||||
| 13 | an agency of this State, every person who is engaged in the | ||||||
| 14 | business of leasing or renting such items and who, in | ||||||
| 15 | connection with such business, sells any such item to a | ||||||
| 16 | retailer for the purpose of resale is, notwithstanding any | ||||||
| 17 | other provision of this Section to the contrary, authorized to | ||||||
| 18 | meet the return-filing requirement of this Act by reporting | ||||||
| 19 | the transfer of all the aircraft, watercraft, motor vehicles, | ||||||
| 20 | or trailers transferred for resale during a month to the | ||||||
| 21 | Department on the same uniform invoice-transaction reporting | ||||||
| 22 | return form on or before the 20th of the month following the | ||||||
| 23 | month in which the transfer takes place. Notwithstanding any | ||||||
| 24 | other provision of this Act to the contrary, all returns filed | ||||||
| 25 | under this paragraph must be filed by electronic means in the | ||||||
| 26 | manner and form as required by the Department. | ||||||
| |||||||
| |||||||
| 1 | Any retailer who sells only motor vehicles, watercraft, | ||||||
| 2 | aircraft, or trailers that are required to be registered with | ||||||
| 3 | an agency of this State, so that all retailers' occupation tax | ||||||
| 4 | liability is required to be reported, and is reported, on such | ||||||
| 5 | transaction reporting returns and who is not otherwise | ||||||
| 6 | required to file monthly or quarterly returns, need not file | ||||||
| 7 | monthly or quarterly returns. However, those retailers shall | ||||||
| 8 | be required to file returns on an annual basis. | ||||||
| 9 | The transaction reporting return, in the case of motor | ||||||
| 10 | vehicles or trailers that are required to be registered with | ||||||
| 11 | an agency of this State, shall be the same document as the | ||||||
| 12 | Uniform Invoice referred to in Section 5-402 of the Illinois | ||||||
| 13 | Vehicle Code and must show the name and address of the seller; | ||||||
| 14 | the name and address of the purchaser; the amount of the | ||||||
| 15 | selling price including the amount allowed by the retailer for | ||||||
| 16 | traded-in property, if any; the amount allowed by the retailer | ||||||
| 17 | for the traded-in tangible personal property, if any, to the | ||||||
| 18 | extent to which Section 1 of this Act allows an exemption for | ||||||
| 19 | the value of traded-in property; the balance payable after | ||||||
| 20 | deducting such trade-in allowance from the total selling | ||||||
| 21 | price; the amount of tax due from the retailer with respect to | ||||||
| 22 | such transaction; the amount of tax collected from the | ||||||
| 23 | purchaser by the retailer on such transaction (or satisfactory | ||||||
| 24 | evidence that such tax is not due in that particular instance, | ||||||
| 25 | if that is claimed to be the fact); the place and date of the | ||||||
| 26 | sale; a sufficient identification of the property sold; such | ||||||
| |||||||
| |||||||
| 1 | other information as is required in Section 5-402 of the | ||||||
| 2 | Illinois Vehicle Code, and such other information as the | ||||||
| 3 | Department may reasonably require. | ||||||
| 4 | The transaction reporting return in the case of watercraft | ||||||
| 5 | or aircraft must show the name and address of the seller; the | ||||||
| 6 | name and address of the purchaser; the amount of the selling | ||||||
| 7 | price including the amount allowed by the retailer for | ||||||
| 8 | traded-in property, if any; the amount allowed by the retailer | ||||||
| 9 | for the traded-in tangible personal property, if any, to the | ||||||
| 10 | extent to which Section 1 of this Act allows an exemption for | ||||||
| 11 | the value of traded-in property; the balance payable after | ||||||
| 12 | deducting such trade-in allowance from the total selling | ||||||
| 13 | price; the amount of tax due from the retailer with respect to | ||||||
| 14 | such transaction; the amount of tax collected from the | ||||||
| 15 | purchaser by the retailer on such transaction (or satisfactory | ||||||
| 16 | evidence that such tax is not due in that particular instance, | ||||||
| 17 | if that is claimed to be the fact); the place and date of the | ||||||
| 18 | sale, a sufficient identification of the property sold, and | ||||||
| 19 | such other information as the Department may reasonably | ||||||
| 20 | require. | ||||||
| 21 | Such transaction reporting return shall be filed not later | ||||||
| 22 | than 20 days after the day of delivery of the item that is | ||||||
| 23 | being sold, but may be filed by the retailer at any time sooner | ||||||
| 24 | than that if he chooses to do so. The transaction reporting | ||||||
| 25 | return and tax remittance or proof of exemption from the | ||||||
| 26 | Illinois use tax may be transmitted to the Department by way of | ||||||
| |||||||
| |||||||
| 1 | the State agency with which, or State officer with whom the | ||||||
| 2 | tangible personal property must be titled or registered (if | ||||||
| 3 | titling or registration is required) if the Department and | ||||||
| 4 | such agency or State officer determine that this procedure | ||||||
| 5 | will expedite the processing of applications for title or | ||||||
| 6 | registration. | ||||||
| 7 | With each such transaction reporting return, the retailer | ||||||
| 8 | shall remit the proper amount of tax due (or shall submit | ||||||
| 9 | satisfactory evidence that the sale is not taxable if that is | ||||||
| 10 | the case), to the Department or its agents, whereupon the | ||||||
| 11 | Department shall issue, in the purchaser's name, a use tax | ||||||
| 12 | receipt (or a certificate of exemption if the Department is | ||||||
| 13 | satisfied that the particular sale is tax exempt) which such | ||||||
| 14 | purchaser may submit to the agency with which, or State | ||||||
| 15 | officer with whom, he must title or register the tangible | ||||||
| 16 | personal property that is involved (if titling or registration | ||||||
| 17 | is required) in support of such purchaser's application for an | ||||||
| 18 | Illinois certificate or other evidence of title or | ||||||
| 19 | registration to such tangible personal property. | ||||||
| 20 | No retailer's failure or refusal to remit tax under this | ||||||
| 21 | Act precludes a user, who has paid the proper tax to the | ||||||
| 22 | retailer, from obtaining his certificate of title or other | ||||||
| 23 | evidence of title or registration (if titling or registration | ||||||
| 24 | is required) upon satisfying the Department that such user has | ||||||
| 25 | paid the proper tax (if tax is due) to the retailer. The | ||||||
| 26 | Department shall adopt appropriate rules to carry out the | ||||||
| |||||||
| |||||||
| 1 | mandate of this paragraph. | ||||||
| 2 | If the user who would otherwise pay tax to the retailer | ||||||
| 3 | wants the transaction reporting return filed and the payment | ||||||
| 4 | of the tax or proof of exemption made to the Department before | ||||||
| 5 | the retailer is willing to take these actions and such user has | ||||||
| 6 | not paid the tax to the retailer, such user may certify to the | ||||||
| 7 | fact of such delay by the retailer and may (upon the Department | ||||||
| 8 | being satisfied of the truth of such certification) transmit | ||||||
| 9 | the information required by the transaction reporting return | ||||||
| 10 | and the remittance for tax or proof of exemption directly to | ||||||
| 11 | the Department and obtain his tax receipt or exemption | ||||||
| 12 | determination, in which event the transaction reporting return | ||||||
| 13 | and tax remittance (if a tax payment was required) shall be | ||||||
| 14 | credited by the Department to the proper retailer's account | ||||||
| 15 | with the Department, but without the 2.1% or 1.75% discount | ||||||
| 16 | provided for in this Section being allowed. When the user pays | ||||||
| 17 | the tax directly to the Department, he shall pay the tax in the | ||||||
| 18 | same amount and in the same form in which it would be remitted | ||||||
| 19 | if the tax had been remitted to the Department by the retailer. | ||||||
| 20 | Refunds made by the seller during the preceding return | ||||||
| 21 | period to purchasers, on account of tangible personal property | ||||||
| 22 | returned to the seller, shall be allowed as a deduction under | ||||||
| 23 | subdivision 5 of his monthly or quarterly return, as the case | ||||||
| 24 | may be, in case the seller had theretofore included the | ||||||
| 25 | receipts from the sale of such tangible personal property in a | ||||||
| 26 | return filed by him and had paid the tax imposed by this Act | ||||||
| |||||||
| |||||||
| 1 | with respect to such receipts. | ||||||
| 2 | Where the seller is a corporation, the return filed on | ||||||
| 3 | behalf of such corporation shall be signed by the president, | ||||||
| 4 | vice-president, secretary, or treasurer or by the properly | ||||||
| 5 | accredited agent of such corporation. | ||||||
| 6 | Where the seller is a limited liability company, the | ||||||
| 7 | return filed on behalf of the limited liability company shall | ||||||
| 8 | be signed by a manager, member, or properly accredited agent | ||||||
| 9 | of the limited liability company. | ||||||
| 10 | Except as provided in this Section, the retailer filing | ||||||
| 11 | the return under this Section shall, at the time of filing such | ||||||
| 12 | return, pay to the Department the amount of tax imposed by this | ||||||
| 13 | Act less a discount of 2.1% prior to January 1, 1990 and 1.75% | ||||||
| 14 | on and after January 1, 1990, or $5 per calendar year, | ||||||
| 15 | whichever is greater, which is allowed to reimburse the | ||||||
| 16 | retailer for the expenses incurred in keeping records, | ||||||
| 17 | preparing and filing returns, remitting the tax and supplying | ||||||
| 18 | data to the Department on request. On and after January 1, | ||||||
| 19 | 2021, a certified service provider, as defined in the Leveling | ||||||
| 20 | the Playing Field for Illinois Retail Act, filing the return | ||||||
| 21 | under this Section on behalf of a remote retailer shall, at the | ||||||
| 22 | time of such return, pay to the Department the amount of tax | ||||||
| 23 | imposed by this Act less a discount of 1.75%. A remote retailer | ||||||
| 24 | using a certified service provider to file a return on its | ||||||
| 25 | behalf, as provided in the Leveling the Playing Field for | ||||||
| 26 | Illinois Retail Act, is not eligible for the discount. When | ||||||
| |||||||
| |||||||
| 1 | determining the discount allowed under this Section, retailers | ||||||
| 2 | shall include the amount of tax that would have been due at the | ||||||
| 3 | 1% rate but for the 0% rate imposed under Public Act 102-700. | ||||||
| 4 | When determining the discount allowed under this Section, | ||||||
| 5 | retailers shall include the amount of tax that would have been | ||||||
| 6 | due at the 6.25% rate but for the 1.25% rate imposed on sales | ||||||
| 7 | tax holiday items under Public Act 102-700. The discount under | ||||||
| 8 | this Section is not allowed for the 1.25% portion of taxes paid | ||||||
| 9 | on aviation fuel that is subject to the revenue use | ||||||
| 10 | requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. Any | ||||||
| 11 | prepayment made pursuant to Section 2d of this Act shall be | ||||||
| 12 | included in the amount on which such 2.1% or 1.75% discount is | ||||||
| 13 | computed. In the case of retailers who report and pay the tax | ||||||
| 14 | on a transaction by transaction basis, as provided in this | ||||||
| 15 | Section, such discount shall be taken with each such tax | ||||||
| 16 | remittance instead of when such retailer files his periodic | ||||||
| 17 | return. The discount allowed under this Section is allowed | ||||||
| 18 | only for returns that are filed in the manner required by this | ||||||
| 19 | Act. The Department may disallow the discount for retailers | ||||||
| 20 | whose certificate of registration is revoked at the time the | ||||||
| 21 | return is filed, but only if the Department's decision to | ||||||
| 22 | revoke the certificate of registration has become final. | ||||||
| 23 | Before October 1, 2000, if the taxpayer's average monthly | ||||||
| 24 | tax liability to the Department under this Act, the Use Tax | ||||||
| 25 | Act, the Service Occupation Tax Act, and the Service Use Tax | ||||||
| 26 | Act, excluding any liability for prepaid sales tax to be | ||||||
| |||||||
| |||||||
| 1 | remitted in accordance with Section 2d of this Act, was | ||||||
| 2 | $10,000 or more during the preceding 4 complete calendar | ||||||
| 3 | quarters, he shall file a return with the Department each | ||||||
| 4 | month by the 20th day of the month next following the month | ||||||
| 5 | during which such tax liability is incurred and shall make | ||||||
| 6 | payments to the Department on or before the 7th, 15th, 22nd and | ||||||
| 7 | last day of the month during which such liability is incurred. | ||||||
| 8 | On and after October 1, 2000, if the taxpayer's average | ||||||
| 9 | monthly tax liability to the Department under this Act, the | ||||||
| 10 | Use Tax Act, the Service Occupation Tax Act, and the Service | ||||||
| 11 | Use Tax Act, excluding any liability for prepaid sales tax to | ||||||
| 12 | be remitted in accordance with Section 2d of this Act, was | ||||||
| 13 | $20,000 or more during the preceding 4 complete calendar | ||||||
| 14 | quarters, he shall file a return with the Department each | ||||||
| 15 | month by the 20th day of the month next following the month | ||||||
| 16 | during which such tax liability is incurred and shall make | ||||||
| 17 | payment to the Department on or before the 7th, 15th, 22nd and | ||||||
| 18 | last day of the month during which such liability is incurred. | ||||||
| 19 | If the month during which such tax liability is incurred began | ||||||
| 20 | prior to January 1, 1985, each payment shall be in an amount | ||||||
| 21 | equal to 1/4 of the taxpayer's actual liability for the month | ||||||
| 22 | or an amount set by the Department not to exceed 1/4 of the | ||||||
| 23 | average monthly liability of the taxpayer to the Department | ||||||
| 24 | for the preceding 4 complete calendar quarters (excluding the | ||||||
| 25 | month of highest liability and the month of lowest liability | ||||||
| 26 | in such 4 quarter period). If the month during which such tax | ||||||
| |||||||
| |||||||
| 1 | liability is incurred begins on or after January 1, 1985 and | ||||||
| 2 | prior to January 1, 1987, each payment shall be in an amount | ||||||
| 3 | equal to 22.5% of the taxpayer's actual liability for the | ||||||
| 4 | month or 27.5% of the taxpayer's liability for the same | ||||||
| 5 | calendar month of the preceding year. If the month during | ||||||
| 6 | which such tax liability is incurred begins on or after | ||||||
| 7 | January 1, 1987 and prior to January 1, 1988, each payment | ||||||
| 8 | shall be in an amount equal to 22.5% of the taxpayer's actual | ||||||
| 9 | liability for the month or 26.25% of the taxpayer's liability | ||||||
| 10 | for the same calendar month of the preceding year. If the month | ||||||
| 11 | during which such tax liability is incurred begins on or after | ||||||
| 12 | January 1, 1988, and prior to January 1, 1989, or begins on or | ||||||
| 13 | after January 1, 1996, each payment shall be in an amount equal | ||||||
| 14 | to 22.5% of the taxpayer's actual liability for the month or | ||||||
| 15 | 25% of the taxpayer's liability for the same calendar month of | ||||||
| 16 | the preceding year. If the month during which such tax | ||||||
| 17 | liability is incurred begins on or after January 1, 1989, and | ||||||
| 18 | prior to January 1, 1996, each payment shall be in an amount | ||||||
| 19 | equal to 22.5% of the taxpayer's actual liability for the | ||||||
| 20 | month or 25% of the taxpayer's liability for the same calendar | ||||||
| 21 | month of the preceding year or 100% of the taxpayer's actual | ||||||
| 22 | liability for the quarter monthly reporting period. The amount | ||||||
| 23 | of such quarter monthly payments shall be credited against the | ||||||
| 24 | final tax liability of the taxpayer's return for that month. | ||||||
| 25 | Before October 1, 2000, once applicable, the requirement of | ||||||
| 26 | the making of quarter monthly payments to the Department by | ||||||
| |||||||
| |||||||
| 1 | taxpayers having an average monthly tax liability of $10,000 | ||||||
| 2 | or more as determined in the manner provided above shall | ||||||
| 3 | continue until such taxpayer's average monthly liability to | ||||||
| 4 | the Department during the preceding 4 complete calendar | ||||||
| 5 | quarters (excluding the month of highest liability and the | ||||||
| 6 | month of lowest liability) is less than $9,000, or until such | ||||||
| 7 | taxpayer's average monthly liability to the Department as | ||||||
| 8 | computed for each calendar quarter of the 4 preceding complete | ||||||
| 9 | calendar quarter period is less than $10,000. However, if a | ||||||
| 10 | taxpayer can show the Department that a substantial change in | ||||||
| 11 | the taxpayer's business has occurred which causes the taxpayer | ||||||
| 12 | to anticipate that his average monthly tax liability for the | ||||||
| 13 | reasonably foreseeable future will fall below the $10,000 | ||||||
| 14 | threshold stated above, then such taxpayer may petition the | ||||||
| 15 | Department for a change in such taxpayer's reporting status. | ||||||
| 16 | On and after October 1, 2000, once applicable, the requirement | ||||||
| 17 | of the making of quarter monthly payments to the Department by | ||||||
| 18 | taxpayers having an average monthly tax liability of $20,000 | ||||||
| 19 | or more as determined in the manner provided above shall | ||||||
| 20 | continue until such taxpayer's average monthly liability to | ||||||
| 21 | the Department during the preceding 4 complete calendar | ||||||
| 22 | quarters (excluding the month of highest liability and the | ||||||
| 23 | month of lowest liability) is less than $19,000 or until such | ||||||
| 24 | taxpayer's average monthly liability to the Department as | ||||||
| 25 | computed for each calendar quarter of the 4 preceding complete | ||||||
| 26 | calendar quarter period is less than $20,000. However, if a | ||||||
| |||||||
| |||||||
| 1 | taxpayer can show the Department that a substantial change in | ||||||
| 2 | the taxpayer's business has occurred which causes the taxpayer | ||||||
| 3 | to anticipate that his average monthly tax liability for the | ||||||
| 4 | reasonably foreseeable future will fall below the $20,000 | ||||||
| 5 | threshold stated above, then such taxpayer may petition the | ||||||
| 6 | Department for a change in such taxpayer's reporting status. | ||||||
| 7 | The Department shall change such taxpayer's reporting status | ||||||
| 8 | unless it finds that such change is seasonal in nature and not | ||||||
| 9 | likely to be long term. Quarter monthly payment status shall | ||||||
| 10 | be determined under this paragraph as if the rate reduction to | ||||||
| 11 | 0% in Public Act 102-700 on food for human consumption that is | ||||||
| 12 | to be consumed off the premises where it is sold (other than | ||||||
| 13 | alcoholic beverages, food consisting of or infused with adult | ||||||
| 14 | use cannabis, soft drinks, and food that has been prepared for | ||||||
| 15 | immediate consumption) had not occurred. For quarter monthly | ||||||
| 16 | payments due under this paragraph on or after July 1, 2023 and | ||||||
| 17 | through June 30, 2024, "25% of the taxpayer's liability for | ||||||
| 18 | the same calendar month of the preceding year" shall be | ||||||
| 19 | determined as if the rate reduction to 0% in Public Act 102-700 | ||||||
| 20 | had not occurred. Quarter monthly payment status shall be | ||||||
| 21 | determined under this paragraph as if the rate reduction to | ||||||
| 22 | 1.25% in Public Act 102-700 on sales tax holiday items had not | ||||||
| 23 | occurred. For quarter monthly payments due on or after July 1, | ||||||
| 24 | 2023 and through June 30, 2024, "25% of the taxpayer's | ||||||
| 25 | liability for the same calendar month of the preceding year" | ||||||
| 26 | shall be determined as if the rate reduction to 1.25% in Public | ||||||
| |||||||
| |||||||
| 1 | Act 102-700 on sales tax holiday items had not occurred. If any | ||||||
| 2 | such quarter monthly payment is not paid at the time or in the | ||||||
| 3 | amount required by this Section, then the taxpayer shall be | ||||||
| 4 | liable for penalties and interest on the difference between | ||||||
| 5 | the minimum amount due as a payment and the amount of such | ||||||
| 6 | quarter monthly payment actually and timely paid, except | ||||||
| 7 | insofar as the taxpayer has previously made payments for that | ||||||
| 8 | month to the Department in excess of the minimum payments | ||||||
| 9 | previously due as provided in this Section. The Department | ||||||
| 10 | shall make reasonable rules and regulations to govern the | ||||||
| 11 | quarter monthly payment amount and quarter monthly payment | ||||||
| 12 | dates for taxpayers who file on other than a calendar monthly | ||||||
| 13 | basis. | ||||||
| 14 | The provisions of this paragraph apply before October 1, | ||||||
| 15 | 2001. Without regard to whether a taxpayer is required to make | ||||||
| 16 | quarter monthly payments as specified above, any taxpayer who | ||||||
| 17 | is required by Section 2d of this Act to collect and remit | ||||||
| 18 | prepaid taxes and has collected prepaid taxes which average in | ||||||
| 19 | excess of $25,000 per month during the preceding 2 complete | ||||||
| 20 | calendar quarters, shall file a return with the Department as | ||||||
| 21 | required by Section 2f and shall make payments to the | ||||||
| 22 | Department on or before the 7th, 15th, 22nd and last day of the | ||||||
| 23 | month during which such liability is incurred. If the month | ||||||
| 24 | during which such tax liability is incurred began prior to | ||||||
| 25 | September 1, 1985 (the effective date of Public Act 84-221), | ||||||
| 26 | each payment shall be in an amount not less than 22.5% of the | ||||||
| |||||||
| |||||||
| 1 | taxpayer's actual liability under Section 2d. If the month | ||||||
| 2 | during which such tax liability is incurred begins on or after | ||||||
| 3 | January 1, 1986, each payment shall be in an amount equal to | ||||||
| 4 | 22.5% of the taxpayer's actual liability for the month or | ||||||
| 5 | 27.5% of the taxpayer's liability for the same calendar month | ||||||
| 6 | of the preceding calendar year. If the month during which such | ||||||
| 7 | tax liability is incurred begins on or after January 1, 1987, | ||||||
| 8 | each payment shall be in an amount equal to 22.5% of the | ||||||
| 9 | taxpayer's actual liability for the month or 26.25% of the | ||||||
| 10 | taxpayer's liability for the same calendar month of the | ||||||
| 11 | preceding year. The amount of such quarter monthly payments | ||||||
| 12 | shall be credited against the final tax liability of the | ||||||
| 13 | taxpayer's return for that month filed under this Section or | ||||||
| 14 | Section 2f, as the case may be. Once applicable, the | ||||||
| 15 | requirement of the making of quarter monthly payments to the | ||||||
| 16 | Department pursuant to this paragraph shall continue until | ||||||
| 17 | such taxpayer's average monthly prepaid tax collections during | ||||||
| 18 | the preceding 2 complete calendar quarters is $25,000 or less. | ||||||
| 19 | If any such quarter monthly payment is not paid at the time or | ||||||
| 20 | in the amount required, the taxpayer shall be liable for | ||||||
| 21 | penalties and interest on such difference, except insofar as | ||||||
| 22 | the taxpayer has previously made payments for that month in | ||||||
| 23 | excess of the minimum payments previously due. | ||||||
| 24 | The provisions of this paragraph apply on and after | ||||||
| 25 | October 1, 2001. Without regard to whether a taxpayer is | ||||||
| 26 | required to make quarter monthly payments as specified above, | ||||||
| |||||||
| |||||||
| 1 | any taxpayer who is required by Section 2d of this Act to | ||||||
| 2 | collect and remit prepaid taxes and has collected prepaid | ||||||
| 3 | taxes that average in excess of $20,000 per month during the | ||||||
| 4 | preceding 4 complete calendar quarters shall file a return | ||||||
| 5 | with the Department as required by Section 2f and shall make | ||||||
| 6 | payments to the Department on or before the 7th, 15th, 22nd, | ||||||
| 7 | and last day of the month during which the liability is | ||||||
| 8 | incurred. Each payment shall be in an amount equal to 22.5% of | ||||||
| 9 | the taxpayer's actual liability for the month or 25% of the | ||||||
| 10 | taxpayer's liability for the same calendar month of the | ||||||
| 11 | preceding year. The amount of the quarter monthly payments | ||||||
| 12 | shall be credited against the final tax liability of the | ||||||
| 13 | taxpayer's return for that month filed under this Section or | ||||||
| 14 | Section 2f, as the case may be. Once applicable, the | ||||||
| 15 | requirement of the making of quarter monthly payments to the | ||||||
| 16 | Department pursuant to this paragraph shall continue until the | ||||||
| 17 | taxpayer's average monthly prepaid tax collections during the | ||||||
| 18 | preceding 4 complete calendar quarters (excluding the month of | ||||||
| 19 | highest liability and the month of lowest liability) is less | ||||||
| 20 | than $19,000 or until such taxpayer's average monthly | ||||||
| 21 | liability to the Department as computed for each calendar | ||||||
| 22 | quarter of the 4 preceding complete calendar quarters is less | ||||||
| 23 | than $20,000. If any such quarter monthly payment is not paid | ||||||
| 24 | at the time or in the amount required, the taxpayer shall be | ||||||
| 25 | liable for penalties and interest on such difference, except | ||||||
| 26 | insofar as the taxpayer has previously made payments for that | ||||||
| |||||||
| |||||||
| 1 | month in excess of the minimum payments previously due. | ||||||
| 2 | If any payment provided for in this Section exceeds the | ||||||
| 3 | taxpayer's liabilities under this Act, the Use Tax Act, the | ||||||
| 4 | Service Occupation Tax Act, and the Service Use Tax Act, as | ||||||
| 5 | shown on an original monthly return, the Department shall, if | ||||||
| 6 | requested by the taxpayer, issue to the taxpayer a credit | ||||||
| 7 | memorandum no later than 30 days after the date of payment. The | ||||||
| 8 | credit evidenced by such credit memorandum may be assigned by | ||||||
| 9 | the taxpayer to a similar taxpayer under this Act, the Use Tax | ||||||
| 10 | Act, the Service Occupation Tax Act, or the Service Use Tax | ||||||
| 11 | Act, in accordance with reasonable rules and regulations to be | ||||||
| 12 | prescribed by the Department. If no such request is made, the | ||||||
| 13 | taxpayer may credit such excess payment against tax liability | ||||||
| 14 | subsequently to be remitted to the Department under this Act, | ||||||
| 15 | the Use Tax Act, the Service Occupation Tax Act, or the Service | ||||||
| 16 | Use Tax Act, in accordance with reasonable rules and | ||||||
| 17 | regulations prescribed by the Department. If the Department | ||||||
| 18 | subsequently determined that all or any part of the credit | ||||||
| 19 | taken was not actually due to the taxpayer, the taxpayer's | ||||||
| 20 | 2.1% and 1.75% vendor's discount shall be reduced by 2.1% or | ||||||
| 21 | 1.75% of the difference between the credit taken and that | ||||||
| 22 | actually due, and that taxpayer shall be liable for penalties | ||||||
| 23 | and interest on such difference. | ||||||
| 24 | If a retailer of motor fuel is entitled to a credit under | ||||||
| 25 | Section 2d of this Act which exceeds the taxpayer's liability | ||||||
| 26 | to the Department under this Act for the month for which the | ||||||
| |||||||
| |||||||
| 1 | taxpayer is filing a return, the Department shall issue the | ||||||
| 2 | taxpayer a credit memorandum for the excess. | ||||||
| 3 | Beginning January 1, 1990, each month the Department shall | ||||||
| 4 | pay into the Local Government Tax Fund, a special fund in the | ||||||
| 5 | State treasury which is hereby created, the net revenue | ||||||
| 6 | realized for the preceding month from the 1% tax imposed under | ||||||
| 7 | this Act. | ||||||
| 8 | Beginning January 1, 1990, each month the Department shall | ||||||
| 9 | pay into the County and Mass Transit District Fund, a special | ||||||
| 10 | fund in the State treasury which is hereby created, 4% of the | ||||||
| 11 | net revenue realized for the preceding month from the 6.25% | ||||||
| 12 | general rate other than aviation fuel sold on or after | ||||||
| 13 | December 1, 2019. This exception for aviation fuel only | ||||||
| 14 | applies for so long as the revenue use requirements of 49 | ||||||
| 15 | U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State. | ||||||
| 16 | Beginning August 1, 2000, each month the Department shall | ||||||
| 17 | pay into the County and Mass Transit District Fund 20% of the | ||||||
| 18 | net revenue realized for the preceding month from the 1.25% | ||||||
| 19 | rate on the selling price of motor fuel and gasohol. If, in any | ||||||
| 20 | month, the tax on sales tax holiday items, as defined in | ||||||
| 21 | Section 2-8, is imposed at the rate of 1.25%, then the | ||||||
| 22 | Department shall pay 20% of the net revenue realized for that | ||||||
| 23 | month from the 1.25% rate on the selling price of sales tax | ||||||
| 24 | holiday items into the County and Mass Transit District Fund. | ||||||
| 25 | Beginning January 1, 1990, each month the Department shall | ||||||
| 26 | pay into the Local Government Tax Fund 16% of the net revenue | ||||||
| |||||||
| |||||||
| 1 | realized for the preceding month from the 6.25% general rate | ||||||
| 2 | on the selling price of tangible personal property other than | ||||||
| 3 | aviation fuel sold on or after December 1, 2019. This | ||||||
| 4 | exception for aviation fuel only applies for so long as the | ||||||
| 5 | revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. | ||||||
| 6 | 47133 are binding on the State. | ||||||
| 7 | For aviation fuel sold on or after December 1, 2019, each | ||||||
| 8 | month the Department shall pay into the State Aviation Program | ||||||
| 9 | Fund 20% of the net revenue realized for the preceding month | ||||||
| 10 | from the 6.25% general rate on the selling price of aviation | ||||||
| 11 | fuel, less an amount estimated by the Department to be | ||||||
| 12 | required for refunds of the 20% portion of the tax on aviation | ||||||
| 13 | fuel under this Act, which amount shall be deposited into the | ||||||
| 14 | Aviation Fuel Sales Tax Refund Fund. The Department shall only | ||||||
| 15 | pay moneys into the State Aviation Program Fund and the | ||||||
| 16 | Aviation Fuel Sales Tax Refund Fund under this Act for so long | ||||||
| 17 | as the revenue use requirements of 49 U.S.C. 47107(b) and 49 | ||||||
| 18 | U.S.C. 47133 are binding on the State. | ||||||
| 19 | Beginning August 1, 2000, each month the Department shall | ||||||
| 20 | pay into the Local Government Tax Fund 80% of the net revenue | ||||||
| 21 | realized for the preceding month from the 1.25% rate on the | ||||||
| 22 | selling price of motor fuel and gasohol. If, in any month, the | ||||||
| 23 | tax on sales tax holiday items, as defined in Section 2-8, is | ||||||
| 24 | imposed at the rate of 1.25%, then the Department shall pay 80% | ||||||
| 25 | of the net revenue realized for that month from the 1.25% rate | ||||||
| 26 | on the selling price of sales tax holiday items into the Local | ||||||
| |||||||
| |||||||
| 1 | Government Tax Fund. | ||||||
| 2 | Beginning October 1, 2009, each month the Department shall | ||||||
| 3 | pay into the Capital Projects Fund an amount that is equal to | ||||||
| 4 | an amount estimated by the Department to represent 80% of the | ||||||
| 5 | net revenue realized for the preceding month from the sale of | ||||||
| 6 | candy, grooming and hygiene products, and soft drinks that had | ||||||
| 7 | been taxed at a rate of 1% prior to September 1, 2009 but that | ||||||
| 8 | are now taxed at 6.25%. | ||||||
| 9 | Beginning July 1, 2011, each month the Department shall | ||||||
| 10 | pay into the Clean Air Act Permit Fund 80% of the net revenue | ||||||
| 11 | realized for the preceding month from the 6.25% general rate | ||||||
| 12 | on the selling price of sorbents used in Illinois in the | ||||||
| 13 | process of sorbent injection as used to comply with the | ||||||
| 14 | Environmental Protection Act or the federal Clean Air Act, but | ||||||
| 15 | the total payment into the Clean Air Act Permit Fund under this | ||||||
| 16 | Act and the Use Tax Act shall not exceed $2,000,000 in any | ||||||
| 17 | fiscal year. | ||||||
| 18 | Beginning July 1, 2013, each month the Department shall | ||||||
| 19 | pay into the Underground Storage Tank Fund from the proceeds | ||||||
| 20 | collected under this Act, the Use Tax Act, the Service Use Tax | ||||||
| 21 | Act, and the Service Occupation Tax Act an amount equal to the | ||||||
| 22 | average monthly deficit in the Underground Storage Tank Fund | ||||||
| 23 | during the prior year, as certified annually by the Illinois | ||||||
| 24 | Environmental Protection Agency, but the total payment into | ||||||
| 25 | the Underground Storage Tank Fund under this Act, the Use Tax | ||||||
| 26 | Act, the Service Use Tax Act, and the Service Occupation Tax | ||||||
| |||||||
| |||||||
| 1 | Act shall not exceed $18,000,000 in any State fiscal year. As | ||||||
| 2 | used in this paragraph, the "average monthly deficit" shall be | ||||||
| 3 | equal to the difference between the average monthly claims for | ||||||
| 4 | payment by the fund and the average monthly revenues deposited | ||||||
| 5 | into the fund, excluding payments made pursuant to this | ||||||
| 6 | paragraph. | ||||||
| 7 | Beginning July 1, 2015, of the remainder of the moneys | ||||||
| 8 | received by the Department under the Use Tax Act, the Service | ||||||
| 9 | Use Tax Act, the Service Occupation Tax Act, and this Act, each | ||||||
| 10 | month the Department shall deposit $500,000 into the State | ||||||
| 11 | Crime Laboratory Fund. | ||||||
| 12 | Of the remainder of the moneys received by the Department | ||||||
| 13 | pursuant to this Act, (a) 1.75% thereof shall be paid into the | ||||||
| 14 | Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on | ||||||
| 15 | and after July 1, 1989, 3.8% thereof shall be paid into the | ||||||
| 16 | Build Illinois Fund; provided, however, that if in any fiscal | ||||||
| 17 | year the sum of (1) the aggregate of 2.2% or 3.8%, as the case | ||||||
| 18 | may be, of the moneys received by the Department and required | ||||||
| 19 | to be paid into the Build Illinois Fund pursuant to this Act, | ||||||
| 20 | Section 9 of the Use Tax Act, Section 9 of the Service Use Tax | ||||||
| 21 | Act, and Section 9 of the Service Occupation Tax Act, such Acts | ||||||
| 22 | being hereinafter called the "Tax Acts" and such aggregate of | ||||||
| 23 | 2.2% or 3.8%, as the case may be, of moneys being hereinafter | ||||||
| 24 | called the "Tax Act Amount", and (2) the amount transferred to | ||||||
| 25 | the Build Illinois Fund from the State and Local Sales Tax | ||||||
| 26 | Reform Fund shall be less than the Annual Specified Amount (as | ||||||
| ||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
| 1 | hereinafter defined), an amount equal to the difference shall | |||||||||||||||||||||||||||||||||||||
| 2 | be immediately paid into the Build Illinois Fund from other | |||||||||||||||||||||||||||||||||||||
| 3 | moneys received by the Department pursuant to the Tax Acts; | |||||||||||||||||||||||||||||||||||||
| 4 | the "Annual Specified Amount" means the amounts specified | |||||||||||||||||||||||||||||||||||||
| 5 | below for fiscal years 1986 through 1993: | |||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
| 15 | and means the Certified Annual Debt Service Requirement (as | |||||||||||||||||||||||||||||||||||||
| 16 | defined in Section 13 of the Build Illinois Bond Act) or the | |||||||||||||||||||||||||||||||||||||
| 17 | Tax Act Amount, whichever is greater, for fiscal year 1994 and | |||||||||||||||||||||||||||||||||||||
| 18 | each fiscal year thereafter; and further provided, that if on | |||||||||||||||||||||||||||||||||||||
| 19 | the last business day of any month the sum of (1) the Tax Act | |||||||||||||||||||||||||||||||||||||
| 20 | Amount required to be deposited into the Build Illinois Bond | |||||||||||||||||||||||||||||||||||||
| 21 | Account in the Build Illinois Fund during such month and (2) | |||||||||||||||||||||||||||||||||||||
| 22 | the amount transferred to the Build Illinois Fund from the | |||||||||||||||||||||||||||||||||||||
| 23 | State and Local Sales Tax Reform Fund shall have been less than | |||||||||||||||||||||||||||||||||||||
| 24 | 1/12 of the Annual Specified Amount, an amount equal to the | |||||||||||||||||||||||||||||||||||||
| 25 | difference shall be immediately paid into the Build Illinois | |||||||||||||||||||||||||||||||||||||
| 26 | Fund from other moneys received by the Department pursuant to | |||||||||||||||||||||||||||||||||||||
| |||||||
| |||||||
| 1 | the Tax Acts; and, further provided, that in no event shall the | ||||||
| 2 | payments required under the preceding proviso result in | ||||||
| 3 | aggregate payments into the Build Illinois Fund pursuant to | ||||||
| 4 | this clause (b) for any fiscal year in excess of the greater of | ||||||
| 5 | (i) the Tax Act Amount or (ii) the Annual Specified Amount for | ||||||
| 6 | such fiscal year. The amounts payable into the Build Illinois | ||||||
| 7 | Fund under clause (b) of the first sentence in this paragraph | ||||||
| 8 | shall be payable only until such time as the aggregate amount | ||||||
| 9 | on deposit under each trust indenture securing Bonds issued | ||||||
| 10 | and outstanding pursuant to the Build Illinois Bond Act is | ||||||
| 11 | sufficient, taking into account any future investment income, | ||||||
| 12 | to fully provide, in accordance with such indenture, for the | ||||||
| 13 | defeasance of or the payment of the principal of, premium, if | ||||||
| 14 | any, and interest on the Bonds secured by such indenture and on | ||||||
| 15 | any Bonds expected to be issued thereafter and all fees and | ||||||
| 16 | costs payable with respect thereto, all as certified by the | ||||||
| 17 | Director of the Bureau of the Budget (now Governor's Office of | ||||||
| 18 | Management and Budget). If on the last business day of any | ||||||
| 19 | month in which Bonds are outstanding pursuant to the Build | ||||||
| 20 | Illinois Bond Act, the aggregate of moneys deposited in the | ||||||
| 21 | Build Illinois Bond Account in the Build Illinois Fund in such | ||||||
| 22 | month shall be less than the amount required to be transferred | ||||||
| 23 | in such month from the Build Illinois Bond Account to the Build | ||||||
| 24 | Illinois Bond Retirement and Interest Fund pursuant to Section | ||||||
| 25 | 13 of the Build Illinois Bond Act, an amount equal to such | ||||||
| 26 | deficiency shall be immediately paid from other moneys | ||||||
| |||||||||||||||||
| |||||||||||||||||
| 1 | received by the Department pursuant to the Tax Acts to the | ||||||||||||||||
| 2 | Build Illinois Fund; provided, however, that any amounts paid | ||||||||||||||||
| 3 | to the Build Illinois Fund in any fiscal year pursuant to this | ||||||||||||||||
| 4 | sentence shall be deemed to constitute payments pursuant to | ||||||||||||||||
| 5 | clause (b) of the first sentence of this paragraph and shall | ||||||||||||||||
| 6 | reduce the amount otherwise payable for such fiscal year | ||||||||||||||||
| 7 | pursuant to that clause (b). The moneys received by the | ||||||||||||||||
| 8 | Department pursuant to this Act and required to be deposited | ||||||||||||||||
| 9 | into the Build Illinois Fund are subject to the pledge, claim | ||||||||||||||||
| 10 | and charge set forth in Section 12 of the Build Illinois Bond | ||||||||||||||||
| 11 | Act. | ||||||||||||||||
| 12 | Subject to payment of amounts into the Build Illinois Fund | ||||||||||||||||
| 13 | as provided in the preceding paragraph or in any amendment | ||||||||||||||||
| 14 | thereto hereafter enacted, the following specified monthly | ||||||||||||||||
| 15 | installment of the amount requested in the certificate of the | ||||||||||||||||
| 16 | Chairman of the Metropolitan Pier and Exposition Authority | ||||||||||||||||
| 17 | provided under Section 8.25f of the State Finance Act, but not | ||||||||||||||||
| 18 | in excess of sums designated as "Total Deposit", shall be | ||||||||||||||||
| 19 | deposited in the aggregate from collections under Section 9 of | ||||||||||||||||
| 20 | the Use Tax Act, Section 9 of the Service Use Tax Act, Section | ||||||||||||||||
| 21 | 9 of the Service Occupation Tax Act, and Section 3 of the | ||||||||||||||||
| 22 | Retailers' Occupation Tax Act into the McCormick Place | ||||||||||||||||
| 23 | Expansion Project Fund in the specified fiscal years. | ||||||||||||||||
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| 25 | Beginning July 20, 1993 and in each month of each fiscal | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 26 | year thereafter, one-eighth of the amount requested in the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||
| |||||||
| 1 | certificate of the Chairman of the Metropolitan Pier and | ||||||
| 2 | Exposition Authority for that fiscal year, less the amount | ||||||
| 3 | deposited into the McCormick Place Expansion Project Fund by | ||||||
| 4 | the State Treasurer in the respective month under subsection | ||||||
| 5 | (g) of Section 13 of the Metropolitan Pier and Exposition | ||||||
| 6 | Authority Act, plus cumulative deficiencies in the deposits | ||||||
| 7 | required under this Section for previous months and years, | ||||||
| 8 | shall be deposited into the McCormick Place Expansion Project | ||||||
| 9 | Fund, until the full amount requested for the fiscal year, but | ||||||
| 10 | not in excess of the amount specified above as "Total | ||||||
| 11 | Deposit", has been deposited. | ||||||
| 12 | Subject to payment of amounts into the Capital Projects | ||||||
| 13 | Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, | ||||||
| 14 | and the McCormick Place Expansion Project Fund pursuant to the | ||||||
| 15 | preceding paragraphs or in any amendments thereto hereafter | ||||||
| 16 | enacted, for aviation fuel sold on or after December 1, 2019, | ||||||
| 17 | the Department shall each month deposit into the Aviation Fuel | ||||||
| 18 | Sales Tax Refund Fund an amount estimated by the Department to | ||||||
| 19 | be required for refunds of the 80% portion of the tax on | ||||||
| 20 | aviation fuel under this Act. The Department shall only | ||||||
| 21 | deposit moneys into the Aviation Fuel Sales Tax Refund Fund | ||||||
| 22 | under this paragraph for so long as the revenue use | ||||||
| 23 | requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are | ||||||
| 24 | binding on the State. | ||||||
| 25 | Subject to payment of amounts into the Build Illinois Fund | ||||||
| 26 | and the McCormick Place Expansion Project Fund pursuant to the | ||||||
| |||||||
| |||||||
| 1 | preceding paragraphs or in any amendments thereto hereafter | ||||||
| 2 | enacted, beginning July 1, 1993 and ending on September 30, | ||||||
| 3 | 2013, the Department shall each month pay into the Illinois | ||||||
| 4 | Tax Increment Fund 0.27% of 80% of the net revenue realized for | ||||||
| 5 | the preceding month from the 6.25% general rate on the selling | ||||||
| 6 | price of tangible personal property. | ||||||
| 7 | Subject to payment of amounts into the Build Illinois | ||||||
| 8 | Fund, the McCormick Place Expansion Project Fund, and the | ||||||
| 9 | Illinois Tax Increment Fund pursuant to the preceding | ||||||
| 10 | paragraphs or in any amendments to this Section hereafter | ||||||
| 11 | enacted, beginning on the first day of the first calendar | ||||||
| 12 | month to occur on or after August 26, 2014 (the effective date | ||||||
| 13 | of Public Act 98-1098), each month, from the collections made | ||||||
| 14 | under Section 9 of the Use Tax Act, Section 9 of the Service | ||||||
| 15 | Use Tax Act, Section 9 of the Service Occupation Tax Act, and | ||||||
| 16 | Section 3 of the Retailers' Occupation Tax Act, the Department | ||||||
| 17 | shall pay into the Tax Compliance and Administration Fund, to | ||||||
| 18 | be used, subject to appropriation, to fund additional auditors | ||||||
| 19 | and compliance personnel at the Department of Revenue, an | ||||||
| 20 | amount equal to 1/12 of 5% of 80% of the cash receipts | ||||||
| 21 | collected during the preceding fiscal year by the Audit Bureau | ||||||
| 22 | of the Department under the Use Tax Act, the Service Use Tax | ||||||
| 23 | Act, the Service Occupation Tax Act, the Retailers' Occupation | ||||||
| 24 | Tax Act, and associated local occupation and use taxes | ||||||
| 25 | administered by the Department. | ||||||
| 26 | Subject to payments of amounts into the Build Illinois | ||||||
| |||||||
| |||||||
| 1 | Fund, the McCormick Place Expansion Project Fund, the Illinois | ||||||
| 2 | Tax Increment Fund, the Energy Infrastructure Fund, and the | ||||||
| 3 | Tax Compliance and Administration Fund as provided in this | ||||||
| 4 | Section, beginning on July 1, 2018 the Department shall pay | ||||||
| 5 | each month into the Downstate Public Transportation Fund the | ||||||
| 6 | moneys required to be so paid under Section 2-3 of the | ||||||
| 7 | Downstate Public Transportation Act. | ||||||
| 8 | Subject to successful execution and delivery of a | ||||||
| 9 | public-private agreement between the public agency and private | ||||||
| 10 | entity and completion of the civic build, beginning on July 1, | ||||||
| 11 | 2023, of the remainder of the moneys received by the | ||||||
| 12 | Department under the Use Tax Act, the Service Use Tax Act, the | ||||||
| 13 | Service Occupation Tax Act, and this Act, the Department shall | ||||||
| 14 | deposit the following specified deposits in the aggregate from | ||||||
| 15 | collections under the Use Tax Act, the Service Use Tax Act, the | ||||||
| 16 | Service Occupation Tax Act, and the Retailers' Occupation Tax | ||||||
| 17 | Act, as required under Section 8.25g of the State Finance Act | ||||||
| 18 | for distribution consistent with the Public-Private | ||||||
| 19 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
| 20 | The moneys received by the Department pursuant to this Act and | ||||||
| 21 | required to be deposited into the Civic and Transit | ||||||
| 22 | Infrastructure Fund are subject to the pledge, claim and | ||||||
| 23 | charge set forth in Section 25-55 of the Public-Private | ||||||
| 24 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
| 25 | As used in this paragraph, "civic build", "private entity", | ||||||
| 26 | "public-private agreement", and "public agency" have the | ||||||
| |||||||
| |||||||
| 1 | meanings provided in Section 25-10 of the Public-Private | ||||||
| 2 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
| 3 | Fiscal Year.............................Total Deposit | ||||||
| 4 | 2024.....................................$200,000,000 | ||||||
| 5 | 2025....................................$206,000,000 | ||||||
| 6 | 2026....................................$212,200,000 | ||||||
| 7 | 2027....................................$218,500,000 | ||||||
| 8 | 2028....................................$225,100,000 | ||||||
| 9 | 2029....................................$288,700,000 | ||||||
| 10 | 2030....................................$298,900,000 | ||||||
| 11 | 2031....................................$309,300,000 | ||||||
| 12 | 2032....................................$320,100,000 | ||||||
| 13 | 2033....................................$331,200,000 | ||||||
| 14 | 2034....................................$341,200,000 | ||||||
| 15 | 2035....................................$351,400,000 | ||||||
| 16 | 2036....................................$361,900,000 | ||||||
| 17 | 2037....................................$372,800,000 | ||||||
| 18 | 2038....................................$384,000,000 | ||||||
| 19 | 2039....................................$395,500,000 | ||||||
| 20 | 2040....................................$407,400,000 | ||||||
| 21 | 2041....................................$419,600,000 | ||||||
| 22 | 2042....................................$432,200,000 | ||||||
| 23 | 2043....................................$445,100,000 | ||||||
| 24 | Beginning July 1, 2021 and until July 1, 2022, subject to | ||||||
| 25 | the payment of amounts into the County and Mass Transit | ||||||
| 26 | District Fund, the Local Government Tax Fund, the Build | ||||||
| |||||||
| |||||||
| 1 | Illinois Fund, the McCormick Place Expansion Project Fund, the | ||||||
| 2 | Illinois Tax Increment Fund, and the Tax Compliance and | ||||||
| 3 | Administration Fund as provided in this Section, the | ||||||
| 4 | Department shall pay each month into the Road Fund the amount | ||||||
| 5 | estimated to represent 16% of the net revenue realized from | ||||||
| 6 | the taxes imposed on motor fuel and gasohol. Beginning July 1, | ||||||
| 7 | 2022 and until July 1, 2023, subject to the payment of amounts | ||||||
| 8 | into the County and Mass Transit District Fund, the Local | ||||||
| 9 | Government Tax Fund, the Build Illinois Fund, the McCormick | ||||||
| 10 | Place Expansion Project Fund, the Illinois Tax Increment Fund, | ||||||
| 11 | and the Tax Compliance and Administration Fund as provided in | ||||||
| 12 | this Section, the Department shall pay each month into the | ||||||
| 13 | Road Fund the amount estimated to represent 32% of the net | ||||||
| 14 | revenue realized from the taxes imposed on motor fuel and | ||||||
| 15 | gasohol. Beginning July 1, 2023 and until July 1, 2024, | ||||||
| 16 | subject to the payment of amounts into the County and Mass | ||||||
| 17 | Transit District Fund, the Local Government Tax Fund, the | ||||||
| 18 | Build Illinois Fund, the McCormick Place Expansion Project | ||||||
| 19 | Fund, the Illinois Tax Increment Fund, and the Tax Compliance | ||||||
| 20 | and Administration Fund as provided in this Section, the | ||||||
| 21 | Department shall pay each month into the Road Fund the amount | ||||||
| 22 | estimated to represent 48% of the net revenue realized from | ||||||
| 23 | the taxes imposed on motor fuel and gasohol. Beginning July 1, | ||||||
| 24 | 2024 and until July 1, 2025, subject to the payment of amounts | ||||||
| 25 | into the County and Mass Transit District Fund, the Local | ||||||
| 26 | Government Tax Fund, the Build Illinois Fund, the McCormick | ||||||
| |||||||
| |||||||
| 1 | Place Expansion Project Fund, the Illinois Tax Increment Fund, | ||||||
| 2 | and the Tax Compliance and Administration Fund as provided in | ||||||
| 3 | this Section, the Department shall pay each month into the | ||||||
| 4 | Road Fund the amount estimated to represent 64% of the net | ||||||
| 5 | revenue realized from the taxes imposed on motor fuel and | ||||||
| 6 | gasohol. Beginning on July 1, 2025, subject to the payment of | ||||||
| 7 | amounts into the County and Mass Transit District Fund, the | ||||||
| 8 | Local Government Tax Fund, the Build Illinois Fund, the | ||||||
| 9 | McCormick Place Expansion Project Fund, the Illinois Tax | ||||||
| 10 | Increment Fund, and the Tax Compliance and Administration Fund | ||||||
| 11 | as provided in this Section, the Department shall pay each | ||||||
| 12 | month into the Road Fund the amount estimated to represent 80% | ||||||
| 13 | of the net revenue realized from the taxes imposed on motor | ||||||
| 14 | fuel and gasohol. As used in this paragraph "motor fuel" has | ||||||
| 15 | the meaning given to that term in Section 1.1 of the Motor Fuel | ||||||
| 16 | Tax Law, and "gasohol" has the meaning given to that term in | ||||||
| 17 | Section 3-40 of the Use Tax Act. | ||||||
| 18 | Of the remainder of the moneys received by the Department | ||||||
| 19 | pursuant to this Act, 75% thereof shall be paid into the State | ||||||
| 20 | treasury and 25% shall be reserved in a special account and | ||||||
| 21 | used only for the transfer to the Common School Fund as part of | ||||||
| 22 | the monthly transfer from the General Revenue Fund in | ||||||
| 23 | accordance with Section 8a of the State Finance Act. | ||||||
| 24 | The Department may, upon separate written notice to a | ||||||
| 25 | taxpayer, require the taxpayer to prepare and file with the | ||||||
| 26 | Department on a form prescribed by the Department within not | ||||||
| |||||||
| |||||||
| 1 | less than 60 days after receipt of the notice an annual | ||||||
| 2 | information return for the tax year specified in the notice. | ||||||
| 3 | Such annual return to the Department shall include a statement | ||||||
| 4 | of gross receipts as shown by the retailer's last federal | ||||||
| 5 | Federal income tax return. If the total receipts of the | ||||||
| 6 | business as reported in the federal Federal income tax return | ||||||
| 7 | do not agree with the gross receipts reported to the | ||||||
| 8 | Department of Revenue for the same period, the retailer shall | ||||||
| 9 | attach to his annual return a schedule showing a | ||||||
| 10 | reconciliation of the 2 amounts and the reasons for the | ||||||
| 11 | difference. The retailer's annual return to the Department | ||||||
| 12 | shall also disclose the cost of goods sold by the retailer | ||||||
| 13 | during the year covered by such return, opening and closing | ||||||
| 14 | inventories of such goods for such year, costs of goods used | ||||||
| 15 | from stock or taken from stock and given away by the retailer | ||||||
| 16 | during such year, payroll information of the retailer's | ||||||
| 17 | business during such year and any additional reasonable | ||||||
| 18 | information which the Department deems would be helpful in | ||||||
| 19 | determining the accuracy of the monthly, quarterly, or annual | ||||||
| 20 | returns filed by such retailer as provided for in this | ||||||
| 21 | Section. | ||||||
| 22 | If the annual information return required by this Section | ||||||
| 23 | is not filed when and as required, the taxpayer shall be liable | ||||||
| 24 | as follows: | ||||||
| 25 | (i) Until January 1, 1994, the taxpayer shall be | ||||||
| 26 | liable for a penalty equal to 1/6 of 1% of the tax due from | ||||||
| |||||||
| |||||||
| 1 | such taxpayer under this Act during the period to be | ||||||
| 2 | covered by the annual return for each month or fraction of | ||||||
| 3 | a month until such return is filed as required, the | ||||||
| 4 | penalty to be assessed and collected in the same manner as | ||||||
| 5 | any other penalty provided for in this Act. | ||||||
| 6 | (ii) On and after January 1, 1994, the taxpayer shall | ||||||
| 7 | be liable for a penalty as described in Section 3-4 of the | ||||||
| 8 | Uniform Penalty and Interest Act. | ||||||
| 9 | The chief executive officer, proprietor, owner, or highest | ||||||
| 10 | ranking manager shall sign the annual return to certify the | ||||||
| 11 | accuracy of the information contained therein. Any person who | ||||||
| 12 | willfully signs the annual return containing false or | ||||||
| 13 | inaccurate information shall be guilty of perjury and punished | ||||||
| 14 | accordingly. The annual return form prescribed by the | ||||||
| 15 | Department shall include a warning that the person signing the | ||||||
| 16 | return may be liable for perjury. | ||||||
| 17 | The provisions of this Section concerning the filing of an | ||||||
| 18 | annual information return do not apply to a retailer who is not | ||||||
| 19 | required to file an income tax return with the United States | ||||||
| 20 | Government. | ||||||
| 21 | As soon as possible after the first day of each month, upon | ||||||
| 22 | certification of the Department of Revenue, the Comptroller | ||||||
| 23 | shall order transferred and the Treasurer shall transfer from | ||||||
| 24 | the General Revenue Fund to the Motor Fuel Tax Fund an amount | ||||||
| 25 | equal to 1.7% of 80% of the net revenue realized under this Act | ||||||
| 26 | for the second preceding month. Beginning April 1, 2000, this | ||||||
| |||||||
| |||||||
| 1 | transfer is no longer required and shall not be made. | ||||||
| 2 | Net revenue realized for a month shall be the revenue | ||||||
| 3 | collected by the State pursuant to this Act, less the amount | ||||||
| 4 | paid out during that month as refunds to taxpayers for | ||||||
| 5 | overpayment of liability. | ||||||
| 6 | For greater simplicity of administration, manufacturers, | ||||||
| 7 | importers and wholesalers whose products are sold at retail in | ||||||
| 8 | Illinois by numerous retailers, and who wish to do so, may | ||||||
| 9 | assume the responsibility for accounting and paying to the | ||||||
| 10 | Department all tax accruing under this Act with respect to | ||||||
| 11 | such sales, if the retailers who are affected do not make | ||||||
| 12 | written objection to the Department to this arrangement. | ||||||
| 13 | Any person who promotes, organizes, or provides retail | ||||||
| 14 | selling space for concessionaires or other types of sellers at | ||||||
| 15 | the Illinois State Fair, DuQuoin State Fair, county fairs, | ||||||
| 16 | local fairs, art shows, flea markets, and similar exhibitions | ||||||
| 17 | or events, including any transient merchant as defined by | ||||||
| 18 | Section 2 of the Transient Merchant Act of 1987, is required to | ||||||
| 19 | file a report with the Department providing the name of the | ||||||
| 20 | merchant's business, the name of the person or persons engaged | ||||||
| 21 | in merchant's business, the permanent address and Illinois | ||||||
| 22 | Retailers Occupation Tax Registration Number of the merchant, | ||||||
| 23 | the dates and location of the event, and other reasonable | ||||||
| 24 | information that the Department may require. The report must | ||||||
| 25 | be filed not later than the 20th day of the month next | ||||||
| 26 | following the month during which the event with retail sales | ||||||
| |||||||
| |||||||
| 1 | was held. Any person who fails to file a report required by | ||||||
| 2 | this Section commits a business offense and is subject to a | ||||||
| 3 | fine not to exceed $250. | ||||||
| 4 | Any person engaged in the business of selling tangible | ||||||
| 5 | personal property at retail as a concessionaire or other type | ||||||
| 6 | of seller at the Illinois State Fair, county fairs, art shows, | ||||||
| 7 | flea markets, and similar exhibitions or events, or any | ||||||
| 8 | transient merchants, as defined by Section 2 of the Transient | ||||||
| 9 | Merchant Act of 1987, may be required to make a daily report of | ||||||
| 10 | the amount of such sales to the Department and to make a daily | ||||||
| 11 | payment of the full amount of tax due. The Department shall | ||||||
| 12 | impose this requirement when it finds that there is a | ||||||
| 13 | significant risk of loss of revenue to the State at such an | ||||||
| 14 | exhibition or event. Such a finding shall be based on evidence | ||||||
| 15 | that a substantial number of concessionaires or other sellers | ||||||
| 16 | who are not residents of Illinois will be engaging in the | ||||||
| 17 | business of selling tangible personal property at retail at | ||||||
| 18 | the exhibition or event, or other evidence of a significant | ||||||
| 19 | risk of loss of revenue to the State. The Department shall | ||||||
| 20 | notify concessionaires and other sellers affected by the | ||||||
| 21 | imposition of this requirement. In the absence of notification | ||||||
| 22 | by the Department, the concessionaires and other sellers shall | ||||||
| 23 | file their returns as otherwise required in this Section. | ||||||
| 24 | (Source: P.A. 102-634, eff. 8-27-21; 102-700, Article 60, | ||||||
| 25 | Section 60-30, eff. 4-19-22; 102-700, Article 65, Section | ||||||
| 26 | 65-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff. | ||||||
| |||||||
| |||||||
| 1 | 1-1-23; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23; 103-363, | ||||||
| 2 | eff. 7-28-23; revised 9-27-23.)
| ||||||
| 3 | Section 75-25. The Innovation Development and Economy Act | ||||||
| 4 | is amended by changing Section 31 as follows:
| ||||||
| 5 | (50 ILCS 470/31) | ||||||
| 6 | Sec. 31. STAR bond occupation taxes. | ||||||
| 7 | (a) If the corporate authorities of a political | ||||||
| 8 | subdivision have established a STAR bond district and have | ||||||
| 9 | elected to impose a tax by ordinance pursuant to subsection | ||||||
| 10 | (b) or (c) of this Section, each year after the date of the | ||||||
| 11 | adoption of the ordinance and until all STAR bond project | ||||||
| 12 | costs and all political subdivision obligations financing the | ||||||
| 13 | STAR bond project costs, if any, have been paid in accordance | ||||||
| 14 | with the STAR bond project plans, but in no event longer than | ||||||
| 15 | the maximum maturity date of the last of the STAR bonds issued | ||||||
| 16 | for projects in the STAR bond district, all amounts generated | ||||||
| 17 | by the retailers' occupation tax and service occupation tax | ||||||
| 18 | shall be collected and the tax shall be enforced by the | ||||||
| 19 | Department of Revenue in the same manner as all retailers' | ||||||
| 20 | occupation taxes and service occupation taxes imposed in the | ||||||
| 21 | political subdivision imposing the tax. The corporate | ||||||
| 22 | authorities of the political subdivision shall deposit the | ||||||
| 23 | proceeds of the taxes imposed under subsections (b) and (c) | ||||||
| 24 | into either (i) a special fund held by the corporate | ||||||
| |||||||
| |||||||
| 1 | authorities of the political subdivision called the STAR Bonds | ||||||
| 2 | Tax Allocation Fund for the purpose of paying STAR bond | ||||||
| 3 | project costs and obligations incurred in the payment of those | ||||||
| 4 | costs if such taxes are designated as pledged STAR revenues by | ||||||
| 5 | resolution or ordinance of the political subdivision or (ii) | ||||||
| 6 | the political subdivision's general corporate fund if such | ||||||
| 7 | taxes are not designated as pledged STAR revenues by | ||||||
| 8 | resolution or ordinance. | ||||||
| 9 | The tax imposed under this Section by a municipality may | ||||||
| 10 | be imposed only on the portion of a STAR bond district that is | ||||||
| 11 | within the boundaries of the municipality. For any part of a | ||||||
| 12 | STAR bond district that lies outside of the boundaries of that | ||||||
| 13 | municipality, the municipality in which the other part of the | ||||||
| 14 | STAR bond district lies (or the county, in cases where a | ||||||
| 15 | portion of the STAR bond district lies in the unincorporated | ||||||
| 16 | area of a county) is authorized to impose the tax under this | ||||||
| 17 | Section on that part of the STAR bond district. | ||||||
| 18 | (b) The corporate authorities of a political subdivision | ||||||
| 19 | that has established a STAR bond district under this Act may, | ||||||
| 20 | by ordinance or resolution, impose a STAR Bond Retailers' | ||||||
| 21 | Occupation Tax upon all persons engaged in the business of | ||||||
| 22 | selling tangible personal property, other than an item of | ||||||
| 23 | tangible personal property titled or registered with an agency | ||||||
| 24 | of this State's government, at retail in the STAR bond | ||||||
| 25 | district at a rate not to exceed 1% of the gross receipts from | ||||||
| 26 | the sales made in the course of that business, to be imposed | ||||||
| |||||||
| |||||||
| 1 | only in 0.25% increments. The tax may not be imposed on | ||||||
| 2 | tangible personal property taxed at the 1% rate under the | ||||||
| 3 | Retailers' Occupation Tax Act (or at the 0% rate imposed under | ||||||
| 4 | this amendatory Act of the 102nd General Assembly). Beginning | ||||||
| 5 | December 1, 2019 and through December 31, 2020, this tax is not | ||||||
| 6 | imposed on sales of aviation fuel unless the tax revenue is | ||||||
| 7 | expended for airport-related purposes. If the District does | ||||||
| 8 | not have an airport-related purpose to which aviation fuel tax | ||||||
| 9 | revenue is dedicated, then aviation fuel is excluded from the | ||||||
| 10 | tax. The municipality must comply with the certification | ||||||
| 11 | requirements for airport-related purposes under Section 2-22 | ||||||
| 12 | of the Retailers' Occupation Tax Act. For purposes of this | ||||||
| 13 | Act, "airport-related purposes" has the meaning ascribed in | ||||||
| 14 | Section 6z-20.2 of the State Finance Act. Beginning January 1, | ||||||
| 15 | 2021, this tax is not imposed on sales of aviation fuel for so | ||||||
| 16 | long as the revenue use requirements of 49 U.S.C. 47107(b) and | ||||||
| 17 | 49 U.S.C. 47133 are binding on the District. | ||||||
| 18 | The tax imposed under this subsection and all civil | ||||||
| 19 | penalties that may be assessed as an incident thereof shall be | ||||||
| 20 | collected and enforced by the Department of Revenue. The | ||||||
| 21 | certificate of registration that is issued by the Department | ||||||
| 22 | to a retailer under the Retailers' Occupation Tax Act shall | ||||||
| 23 | permit the retailer to engage in a business that is taxable | ||||||
| 24 | under any ordinance or resolution enacted pursuant to this | ||||||
| 25 | subsection without registering separately with the Department | ||||||
| 26 | under such ordinance or resolution or under this subsection. | ||||||
| |||||||
| |||||||
| 1 | The Department of Revenue shall have full power to administer | ||||||
| 2 | and enforce this subsection, to collect all taxes and | ||||||
| 3 | penalties due under this subsection in the manner hereinafter | ||||||
| 4 | provided, and to determine all rights to credit memoranda | ||||||
| 5 | arising on account of the erroneous payment of tax or penalty | ||||||
| 6 | under this subsection. In the administration of, and | ||||||
| 7 | compliance with, this subsection, the Department and persons | ||||||
| 8 | who are subject to this subsection shall have the same rights, | ||||||
| 9 | remedies, privileges, immunities, powers, and duties, and be | ||||||
| 10 | subject to the same conditions, restrictions, limitations, | ||||||
| 11 | penalties, exclusions, exemptions, and definitions of terms | ||||||
| 12 | and employ the same modes of procedure, as are prescribed in | ||||||
| 13 | Sections 1, 1a through 1o, 2 through 2-65 (in respect to all | ||||||
| 14 | provisions therein other than the State rate of tax), 2c | ||||||
| 15 | through 2h, 3 (except as to the disposition of taxes and | ||||||
| 16 | penalties collected, and except that the retailer's discount | ||||||
| 17 | is not allowed for taxes paid on aviation fuel that are subject | ||||||
| 18 | to the revenue use requirements of 49 U.S.C. 47107(b) and 49 | ||||||
| 19 | U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, | ||||||
| 20 | 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13, and 14 of the | ||||||
| 21 | Retailers' Occupation Tax Act and all provisions of the | ||||||
| 22 | Uniform Penalty and Interest Act, as fully as if those | ||||||
| 23 | provisions were set forth herein. | ||||||
| 24 | If a tax is imposed under this subsection (b), a tax shall | ||||||
| 25 | also be imposed under subsection (c) of this Section. | ||||||
| 26 | (c) If a tax has been imposed under subsection (b), a STAR | ||||||
| |||||||
| |||||||
| 1 | Bond Service Occupation Tax shall also be imposed upon all | ||||||
| 2 | persons engaged, in the STAR bond district, in the business of | ||||||
| 3 | making sales of service, who, as an incident to making those | ||||||
| 4 | sales of service, transfer tangible personal property within | ||||||
| 5 | the STAR bond district, either in the form of tangible | ||||||
| 6 | personal property or in the form of real estate as an incident | ||||||
| 7 | to a sale of service. The tax shall be imposed at the same rate | ||||||
| 8 | as the tax imposed in subsection (b) and shall not exceed 1% of | ||||||
| 9 | the selling price of tangible personal property so transferred | ||||||
| 10 | within the STAR bond district, to be imposed only in 0.25% | ||||||
| 11 | increments. The tax may not be imposed on tangible personal | ||||||
| 12 | property taxed at the 1% rate under the Service Occupation Tax | ||||||
| 13 | Act (or at the 0% rate imposed under this amendatory Act of the | ||||||
| 14 | 102nd General Assembly). Beginning December 1, 2019 and | ||||||
| 15 | through December 31, 2020, this tax is not imposed on sales of | ||||||
| 16 | aviation fuel unless the tax revenue is expended for | ||||||
| 17 | airport-related purposes. If the District does not have an | ||||||
| 18 | airport-related purpose to which aviation fuel tax revenue is | ||||||
| 19 | dedicated, then aviation fuel is excluded from the tax. The | ||||||
| 20 | municipality must comply with the certification requirements | ||||||
| 21 | for airport-related purposes under Section 2-22 of the | ||||||
| 22 | Retailers' Occupation Tax Act. For purposes of this Act, | ||||||
| 23 | "airport-related purposes" has the meaning ascribed in Section | ||||||
| 24 | 6z-20.2 of the State Finance Act. Beginning January 1, 2021, | ||||||
| 25 | this tax is not imposed on sales of aviation fuel for so long | ||||||
| 26 | as the revenue use requirements of 49 U.S.C. 47107(b) and 49 | ||||||
| |||||||
| |||||||
| 1 | U.S.C. 47133 are binding on the District. | ||||||
| 2 | The tax imposed under this subsection and all civil | ||||||
| 3 | penalties that may be assessed as an incident thereof shall be | ||||||
| 4 | collected and enforced by the Department of Revenue. The | ||||||
| 5 | certificate of registration that is issued by the Department | ||||||
| 6 | to a retailer under the Retailers' Occupation Tax Act or under | ||||||
| 7 | the Service Occupation Tax Act shall permit the registrant to | ||||||
| 8 | engage in a business that is taxable under any ordinance or | ||||||
| 9 | resolution enacted pursuant to this subsection without | ||||||
| 10 | registering separately with the Department under that | ||||||
| 11 | ordinance or resolution or under this subsection. The | ||||||
| 12 | Department of Revenue shall have full power to administer and | ||||||
| 13 | enforce this subsection, to collect all taxes and penalties | ||||||
| 14 | due under this subsection, to dispose of taxes and penalties | ||||||
| 15 | so collected in the manner hereinafter provided, and to | ||||||
| 16 | determine all rights to credit memoranda arising on account of | ||||||
| 17 | the erroneous payment of tax or penalty under this subsection. | ||||||
| 18 | In the administration of, and compliance with this subsection, | ||||||
| 19 | the Department and persons who are subject to this subsection | ||||||
| 20 | shall have the same rights, remedies, privileges, immunities, | ||||||
| 21 | powers, and duties, and be subject to the same conditions, | ||||||
| 22 | restrictions, limitations, penalties, exclusions, exemptions, | ||||||
| 23 | and definitions of terms and employ the same modes of | ||||||
| 24 | procedure as are prescribed in Sections 2, 2a through 2d, 3 | ||||||
| 25 | through 3-50 (in respect to all provisions therein other than | ||||||
| 26 | the State rate of tax), 4 (except that the reference to the | ||||||
| |||||||
| |||||||
| 1 | State shall be to the STAR bond district), 5, 7, 8 (except that | ||||||
| 2 | the jurisdiction to which the tax shall be a debt to the extent | ||||||
| 3 | indicated in that Section 8 shall be the political | ||||||
| 4 | subdivision), 9 (except as to the disposition of taxes and | ||||||
| 5 | penalties collected, and except that the returned merchandise | ||||||
| 6 | credit for this tax may not be taken against any State tax, and | ||||||
| 7 | except that the retailer's discount is not allowed for taxes | ||||||
| 8 | paid on aviation fuel that are subject to the revenue use | ||||||
| 9 | requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10, | ||||||
| 10 | 11, 12 (except the reference therein to Section 2b of the | ||||||
| 11 | Retailers' Occupation Tax Act), 13 (except that any reference | ||||||
| 12 | to the State shall mean the political subdivision), the first | ||||||
| 13 | paragraph of Section 15, and Sections 16, 17, 18, 19 and 20 of | ||||||
| 14 | the Service Occupation Tax Act and all provisions of the | ||||||
| 15 | Uniform Penalty and Interest Act, as fully as if those | ||||||
| 16 | provisions were set forth herein. | ||||||
| 17 | If a tax is imposed under this subsection (c), a tax shall | ||||||
| 18 | also be imposed under subsection (b) of this Section. | ||||||
| 19 | (c-5) If, on January 1, 2025, a unit of local government | ||||||
| 20 | has in effect a tax under this Section, or if, after January 1, | ||||||
| 21 | 2025, a unit of local government imposes a tax under this | ||||||
| 22 | Section, then that tax applies to leases of tangible personal | ||||||
| 23 | property in effect, entered into, or renewed on or after that | ||||||
| 24 | date in the same manner as the tax under this Section and in | ||||||
| 25 | accordance with the changes made by this amendatory Act of the | ||||||
| 26 | 103rd General Assembly. | ||||||
| |||||||
| |||||||
| 1 | (d) Persons subject to any tax imposed under this Section | ||||||
| 2 | may reimburse themselves for their seller's tax liability | ||||||
| 3 | under this Section by separately stating the tax as an | ||||||
| 4 | additional charge, which charge may be stated in combination, | ||||||
| 5 | in a single amount, with State taxes that sellers are required | ||||||
| 6 | to collect under the Use Tax Act, in accordance with such | ||||||
| 7 | bracket schedules as the Department may prescribe. | ||||||
| 8 | Whenever the Department determines that a refund should be | ||||||
| 9 | made under this Section to a claimant instead of issuing a | ||||||
| 10 | credit memorandum, the Department shall notify the State | ||||||
| 11 | Comptroller, who shall cause the order to be drawn for the | ||||||
| 12 | amount specified and to the person named in the notification | ||||||
| 13 | from the Department. The refund shall be paid by the State | ||||||
| 14 | Treasurer out of the STAR Bond Retailers' Occupation Tax Fund | ||||||
| 15 | or the Local Government Aviation Trust Fund, as appropriate. | ||||||
| 16 | Except as otherwise provided in this paragraph, the | ||||||
| 17 | Department shall immediately pay over to the State Treasurer, | ||||||
| 18 | ex officio, as trustee, all taxes, penalties, and interest | ||||||
| 19 | collected under this Section for deposit into the STAR Bond | ||||||
| 20 | Retailers' Occupation Tax Fund. Taxes and penalties collected | ||||||
| 21 | on aviation fuel sold on or after December 1, 2019, shall be | ||||||
| 22 | immediately paid over by the Department to the State | ||||||
| 23 | Treasurer, ex officio, as trustee, for deposit into the Local | ||||||
| 24 | Government Aviation Trust Fund. The Department shall only pay | ||||||
| 25 | moneys into the Local Government Aviation Trust Fund under | ||||||
| 26 | this Section for so long as the revenue use requirements of 49 | ||||||
| |||||||
| |||||||
| 1 | U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the | ||||||
| 2 | District. On or before the 25th day of each calendar month, the | ||||||
| 3 | Department shall prepare and certify to the Comptroller the | ||||||
| 4 | disbursement of stated sums of money to named political | ||||||
| 5 | subdivisions from the STAR Bond Retailers' Occupation Tax | ||||||
| 6 | Fund, the political subdivisions to be those from which | ||||||
| 7 | retailers have paid taxes or penalties under this Section to | ||||||
| 8 | the Department during the second preceding calendar month. The | ||||||
| 9 | amount to be paid to each political subdivision shall be the | ||||||
| 10 | amount (not including credit memoranda and not including taxes | ||||||
| 11 | and penalties collected on aviation fuel sold on or after | ||||||
| 12 | December 1, 2019) collected under this Section during the | ||||||
| 13 | second preceding calendar month by the Department plus an | ||||||
| 14 | amount the Department determines is necessary to offset any | ||||||
| 15 | amounts that were erroneously paid to a different taxing body, | ||||||
| 16 | and not including an amount equal to the amount of refunds made | ||||||
| 17 | during the second preceding calendar month by the Department, | ||||||
| 18 | less 3% of that amount, which shall be deposited into the Tax | ||||||
| 19 | Compliance and Administration Fund and shall be used by the | ||||||
| 20 | Department, subject to appropriation, to cover the costs of | ||||||
| 21 | the Department in administering and enforcing the provisions | ||||||
| 22 | of this Section, on behalf of such political subdivision, and | ||||||
| 23 | not including any amount that the Department determines is | ||||||
| 24 | necessary to offset any amounts that were payable to a | ||||||
| 25 | different taxing body but were erroneously paid to the | ||||||
| 26 | political subdivision. Within 10 days after receipt by the | ||||||
| |||||||
| |||||||
| 1 | Comptroller of the disbursement certification to the political | ||||||
| 2 | subdivisions provided for in this Section to be given to the | ||||||
| 3 | Comptroller by the Department, the Comptroller shall cause the | ||||||
| 4 | orders to be drawn for the respective amounts in accordance | ||||||
| 5 | with the directions contained in the certification. The | ||||||
| 6 | proceeds of the tax paid to political subdivisions under this | ||||||
| 7 | Section shall be deposited into either (i) the STAR Bonds Tax | ||||||
| 8 | Allocation Fund by the political subdivision if the political | ||||||
| 9 | subdivision has designated them as pledged STAR revenues by | ||||||
| 10 | resolution or ordinance or (ii) the political subdivision's | ||||||
| 11 | general corporate fund if the political subdivision has not | ||||||
| 12 | designated them as pledged STAR revenues. | ||||||
| 13 | An ordinance or resolution imposing or discontinuing the | ||||||
| 14 | tax under this Section or effecting a change in the rate | ||||||
| 15 | thereof shall either (i) be adopted and a certified copy | ||||||
| 16 | thereof filed with the Department on or before the first day of | ||||||
| 17 | April, whereupon the Department, if all other requirements of | ||||||
| 18 | this Section are met, shall proceed to administer and enforce | ||||||
| 19 | this Section as of the first day of July next following the | ||||||
| 20 | adoption and filing; or (ii) be adopted and a certified copy | ||||||
| 21 | thereof filed with the Department on or before the first day of | ||||||
| 22 | October, whereupon, if all other requirements of this Section | ||||||
| 23 | are met, the Department shall proceed to administer and | ||||||
| 24 | enforce this Section as of the first day of January next | ||||||
| 25 | following the adoption and filing. | ||||||
| 26 | The Department of Revenue shall not administer or enforce | ||||||
| |||||||
| |||||||
| 1 | an ordinance imposing, discontinuing, or changing the rate of | ||||||
| 2 | the tax under this Section until the political subdivision | ||||||
| 3 | also provides, in the manner prescribed by the Department, the | ||||||
| 4 | boundaries of the STAR bond district and each address in the | ||||||
| 5 | STAR bond district in such a way that the Department can | ||||||
| 6 | determine by its address whether a business is located in the | ||||||
| 7 | STAR bond district. The political subdivision must provide | ||||||
| 8 | this boundary and address information to the Department on or | ||||||
| 9 | before April 1 for administration and enforcement of the tax | ||||||
| 10 | under this Section by the Department beginning on the | ||||||
| 11 | following July 1 and on or before October 1 for administration | ||||||
| 12 | and enforcement of the tax under this Section by the | ||||||
| 13 | Department beginning on the following January 1. The | ||||||
| 14 | Department of Revenue shall not administer or enforce any | ||||||
| 15 | change made to the boundaries of a STAR bond district or any | ||||||
| 16 | address change, addition, or deletion until the political | ||||||
| 17 | subdivision reports the boundary change or address change, | ||||||
| 18 | addition, or deletion to the Department in the manner | ||||||
| 19 | prescribed by the Department. The political subdivision must | ||||||
| 20 | provide this boundary change or address change, addition, or | ||||||
| 21 | deletion information to the Department on or before April 1 | ||||||
| 22 | for administration and enforcement by the Department of the | ||||||
| 23 | change, addition, or deletion beginning on the following July | ||||||
| 24 | 1 and on or before October 1 for administration and | ||||||
| 25 | enforcement by the Department of the change, addition, or | ||||||
| 26 | deletion beginning on the following January 1. The retailers | ||||||
| |||||||
| |||||||
| 1 | in the STAR bond district shall be responsible for charging | ||||||
| 2 | the tax imposed under this Section. If a retailer is | ||||||
| 3 | incorrectly included or excluded from the list of those | ||||||
| 4 | required to collect the tax under this Section, both the | ||||||
| 5 | Department of Revenue and the retailer shall be held harmless | ||||||
| 6 | if they reasonably relied on information provided by the | ||||||
| 7 | political subdivision. | ||||||
| 8 | A political subdivision that imposes the tax under this | ||||||
| 9 | Section must submit to the Department of Revenue any other | ||||||
| 10 | information as the Department may require that is necessary | ||||||
| 11 | for the administration and enforcement of the tax. | ||||||
| 12 | When certifying the amount of a monthly disbursement to a | ||||||
| 13 | political subdivision under this Section, the Department shall | ||||||
| 14 | increase or decrease the amount by an amount necessary to | ||||||
| 15 | offset any misallocation of previous disbursements. The offset | ||||||
| 16 | amount shall be the amount erroneously disbursed within the | ||||||
| 17 | previous 6 months from the time a misallocation is discovered. | ||||||
| 18 | Nothing in this Section shall be construed to authorize | ||||||
| 19 | the political subdivision to impose a tax upon the privilege | ||||||
| 20 | of engaging in any business which under the Constitution of | ||||||
| 21 | the United States may not be made the subject of taxation by | ||||||
| 22 | this State. | ||||||
| 23 | (e) When STAR bond project costs, including, without | ||||||
| 24 | limitation, all political subdivision obligations financing | ||||||
| 25 | STAR bond project costs, have been paid, any surplus funds | ||||||
| 26 | then remaining in the STAR Bonds Tax Allocation Fund shall be | ||||||
| |||||||
| |||||||
| 1 | distributed to the treasurer of the political subdivision for | ||||||
| 2 | deposit into the political subdivision's general corporate | ||||||
| 3 | fund. Upon payment of all STAR bond project costs and | ||||||
| 4 | retirement of obligations, but in no event later than the | ||||||
| 5 | maximum maturity date of the last of the STAR bonds issued in | ||||||
| 6 | the STAR bond district, the political subdivision shall adopt | ||||||
| 7 | an ordinance immediately rescinding the taxes imposed pursuant | ||||||
| 8 | to this Section and file a certified copy of the ordinance with | ||||||
| 9 | the Department in the form and manner as described in this | ||||||
| 10 | Section. | ||||||
| 11 | (Source: P.A. 101-10, eff. 6-5-19; 101-604, eff. 12-13-19; | ||||||
| 12 | 102-700, eff. 4-19-22.)
| ||||||
| 13 | Section 75-30. The Counties Code is amended by changing | ||||||
| 14 | Sections 5-1006, 5-1006.5, 5-1006.7, 5-1007, and 5-1008.5 as | ||||||
| 15 | follows:
| ||||||
| 16 | (55 ILCS 5/5-1006) (from Ch. 34, par. 5-1006) | ||||||
| 17 | Sec. 5-1006. Home Rule County Retailers' Occupation Tax | ||||||
| 18 | Law. Any county that is a home rule unit may impose a tax upon | ||||||
| 19 | all persons engaged in the business of selling tangible | ||||||
| 20 | personal property, other than an item of tangible personal | ||||||
| 21 | property titled or registered with an agency of this State's | ||||||
| 22 | government, at retail in the county on the gross receipts from | ||||||
| 23 | such sales made in the course of their business. If imposed, | ||||||
| 24 | this tax shall only be imposed in 1/4% increments. On and after | ||||||
| |||||||
| |||||||
| 1 | September 1, 1991, this additional tax may not be imposed on | ||||||
| 2 | tangible personal property taxed at the 1% rate under the | ||||||
| 3 | Retailers' Occupation Tax Act (or at the 0% rate imposed under | ||||||
| 4 | this amendatory Act of the 102nd General Assembly). Beginning | ||||||
| 5 | December 1, 2019, this tax is not imposed on sales of aviation | ||||||
| 6 | fuel unless the tax revenue is expended for airport-related | ||||||
| 7 | purposes. If the county does not have an airport-related | ||||||
| 8 | purpose to which it dedicates aviation fuel tax revenue, then | ||||||
| 9 | aviation fuel is excluded from the tax. The county must comply | ||||||
| 10 | with the certification requirements for airport-related | ||||||
| 11 | purposes under Section 2-22 of the Retailers' Occupation Tax | ||||||
| 12 | Act. For purposes of this Section, "airport-related purposes" | ||||||
| 13 | has the meaning ascribed in Section 6z-20.2 of the State | ||||||
| 14 | Finance Act. This exclusion for aviation fuel only applies for | ||||||
| 15 | so long as the revenue use requirements of 49 U.S.C. 47107(b) | ||||||
| 16 | and 49 U.S.C. 47133 are binding on the county. The changes made | ||||||
| 17 | to this Section by this amendatory Act of the 101st General | ||||||
| 18 | Assembly are a denial and limitation of home rule powers and | ||||||
| 19 | functions under subsection (g) of Section 6 of Article VII of | ||||||
| 20 | the Illinois Constitution. | ||||||
| 21 | If, on January 1, 2025, a unit of local government has in | ||||||
| 22 | effect a tax under this Section, or if, after January 1, 2025, | ||||||
| 23 | a unit of local government imposes a tax under this Section, | ||||||
| 24 | then that tax applies to leases of tangible personal property | ||||||
| 25 | in effect, entered into, or renewed on or after that date in | ||||||
| 26 | the same manner as the tax under this Section and in accordance | ||||||
| |||||||
| |||||||
| 1 | with the changes made by this amendatory Act of the 103rd | ||||||
| 2 | General Assembly. | ||||||
| 3 | The tax imposed by a home rule county pursuant to this | ||||||
| 4 | Section and all civil penalties that may be assessed as an | ||||||
| 5 | incident thereof shall be collected and enforced by the State | ||||||
| 6 | Department of Revenue. The certificate of registration that is | ||||||
| 7 | issued by the Department to a retailer under the Retailers' | ||||||
| 8 | Occupation Tax Act shall permit the retailer to engage in a | ||||||
| 9 | business that is taxable under any ordinance or resolution | ||||||
| 10 | enacted pursuant to this Section without registering | ||||||
| 11 | separately with the Department under such ordinance or | ||||||
| 12 | resolution or under this Section. The Department shall have | ||||||
| 13 | full power to administer and enforce this Section; to collect | ||||||
| 14 | all taxes and penalties due hereunder; to dispose of taxes and | ||||||
| 15 | penalties so collected in the manner hereinafter provided; and | ||||||
| 16 | to determine all rights to credit memoranda arising on account | ||||||
| 17 | of the erroneous payment of tax or penalty hereunder. In the | ||||||
| 18 | administration of, and compliance with, this Section, the | ||||||
| 19 | Department and persons who are subject to this Section shall | ||||||
| 20 | have the same rights, remedies, privileges, immunities, powers | ||||||
| 21 | and duties, and be subject to the same conditions, | ||||||
| 22 | restrictions, limitations, penalties and definitions of terms, | ||||||
| 23 | and employ the same modes of procedure, as are prescribed in | ||||||
| 24 | Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through | ||||||
| 25 | 2-65 (in respect to all provisions therein other than the | ||||||
| 26 | State rate of tax), 3 (except as to the disposition of taxes | ||||||
| |||||||
| |||||||
| 1 | and penalties collected, and except that the retailer's | ||||||
| 2 | discount is not allowed for taxes paid on aviation fuel that | ||||||
| 3 | are subject to the revenue use requirements of 49 U.S.C. | ||||||
| 4 | 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, | ||||||
| 5 | 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 | ||||||
| 6 | and 13 of the Retailers' Occupation Tax Act and Section 3-7 of | ||||||
| 7 | the Uniform Penalty and Interest Act, as fully as if those | ||||||
| 8 | provisions were set forth herein. | ||||||
| 9 | No tax may be imposed by a home rule county pursuant to | ||||||
| 10 | this Section unless the county also imposes a tax at the same | ||||||
| 11 | rate pursuant to Section 5-1007. | ||||||
| 12 | Persons subject to any tax imposed pursuant to the | ||||||
| 13 | authority granted in this Section may reimburse themselves for | ||||||
| 14 | their seller's tax liability hereunder by separately stating | ||||||
| 15 | such tax as an additional charge, which charge may be stated in | ||||||
| 16 | combination, in a single amount, with State tax which sellers | ||||||
| 17 | are required to collect under the Use Tax Act, pursuant to such | ||||||
| 18 | bracket schedules as the Department may prescribe. | ||||||
| 19 | Whenever the Department determines that a refund should be | ||||||
| 20 | made under this Section to a claimant instead of issuing a | ||||||
| 21 | credit memorandum, the Department shall notify the State | ||||||
| 22 | Comptroller, who shall cause the order to be drawn for the | ||||||
| 23 | amount specified and to the person named in the notification | ||||||
| 24 | from the Department. The refund shall be paid by the State | ||||||
| 25 | Treasurer out of the home rule county retailers' occupation | ||||||
| 26 | tax fund or the Local Government Aviation Trust Fund, as | ||||||
| |||||||
| |||||||
| 1 | appropriate. | ||||||
| 2 | Except as otherwise provided in this paragraph, the | ||||||
| 3 | Department shall forthwith pay over to the State Treasurer, ex | ||||||
| 4 | officio, as trustee, all taxes and penalties collected | ||||||
| 5 | hereunder for deposit into the Home Rule County Retailers' | ||||||
| 6 | Occupation Tax Fund. Taxes and penalties collected on aviation | ||||||
| 7 | fuel sold on or after December 1, 2019, shall be immediately | ||||||
| 8 | paid over by the Department to the State Treasurer, ex | ||||||
| 9 | officio, as trustee, for deposit into the Local Government | ||||||
| 10 | Aviation Trust Fund. The Department shall only pay moneys into | ||||||
| 11 | the Local Government Aviation Trust Fund under this Section | ||||||
| 12 | for so long as the revenue use requirements of 49 U.S.C. | ||||||
| 13 | 47107(b) and 49 U.S.C. 47133 are binding on the county. | ||||||
| 14 | As soon as possible after the first day of each month, | ||||||
| 15 | beginning January 1, 2011, upon certification of the | ||||||
| 16 | Department of Revenue, the Comptroller shall order | ||||||
| 17 | transferred, and the Treasurer shall transfer, to the STAR | ||||||
| 18 | Bonds Revenue Fund the local sales tax increment, as defined | ||||||
| 19 | in the Innovation Development and Economy Act, collected under | ||||||
| 20 | this Section during the second preceding calendar month for | ||||||
| 21 | sales within a STAR bond district. | ||||||
| 22 | After the monthly transfer to the STAR Bonds Revenue Fund, | ||||||
| 23 | on or before the 25th day of each calendar month, the | ||||||
| 24 | Department shall prepare and certify to the Comptroller the | ||||||
| 25 | disbursement of stated sums of money to named counties, the | ||||||
| 26 | counties to be those from which retailers have paid taxes or | ||||||
| |||||||
| |||||||
| 1 | penalties hereunder to the Department during the second | ||||||
| 2 | preceding calendar month. The amount to be paid to each county | ||||||
| 3 | shall be the amount (not including credit memoranda and not | ||||||
| 4 | including taxes and penalties collected on aviation fuel sold | ||||||
| 5 | on or after December 1, 2019) collected hereunder during the | ||||||
| 6 | second preceding calendar month by the Department plus an | ||||||
| 7 | amount the Department determines is necessary to offset any | ||||||
| 8 | amounts that were erroneously paid to a different taxing body, | ||||||
| 9 | and not including an amount equal to the amount of refunds made | ||||||
| 10 | during the second preceding calendar month by the Department | ||||||
| 11 | on behalf of such county, and not including any amount which | ||||||
| 12 | the Department determines is necessary to offset any amounts | ||||||
| 13 | which were payable to a different taxing body but were | ||||||
| 14 | erroneously paid to the county, and not including any amounts | ||||||
| 15 | that are transferred to the STAR Bonds Revenue Fund, less 1.5% | ||||||
| 16 | of the remainder, which the Department shall transfer into the | ||||||
| 17 | Tax Compliance and Administration Fund. The Department, at the | ||||||
| 18 | time of each monthly disbursement to the counties, shall | ||||||
| 19 | prepare and certify to the State Comptroller the amount to be | ||||||
| 20 | transferred into the Tax Compliance and Administration Fund | ||||||
| 21 | under this Section. Within 10 days after receipt, by the | ||||||
| 22 | Comptroller, of the disbursement certification to the counties | ||||||
| 23 | and the Tax Compliance and Administration Fund provided for in | ||||||
| 24 | this Section to be given to the Comptroller by the Department, | ||||||
| 25 | the Comptroller shall cause the orders to be drawn for the | ||||||
| 26 | respective amounts in accordance with the directions contained | ||||||
| |||||||
| |||||||
| 1 | in the certification. | ||||||
| 2 | In addition to the disbursement required by the preceding | ||||||
| 3 | paragraph, an allocation shall be made in March of each year to | ||||||
| 4 | each county that received more than $500,000 in disbursements | ||||||
| 5 | under the preceding paragraph in the preceding calendar year. | ||||||
| 6 | The allocation shall be in an amount equal to the average | ||||||
| 7 | monthly distribution made to each such county under the | ||||||
| 8 | preceding paragraph during the preceding calendar year | ||||||
| 9 | (excluding the 2 months of highest receipts). The distribution | ||||||
| 10 | made in March of each year subsequent to the year in which an | ||||||
| 11 | allocation was made pursuant to this paragraph and the | ||||||
| 12 | preceding paragraph shall be reduced by the amount allocated | ||||||
| 13 | and disbursed under this paragraph in the preceding calendar | ||||||
| 14 | year. The Department shall prepare and certify to the | ||||||
| 15 | Comptroller for disbursement the allocations made in | ||||||
| 16 | accordance with this paragraph. | ||||||
| 17 | For the purpose of determining the local governmental unit | ||||||
| 18 | whose tax is applicable, a retail sale by a producer of coal or | ||||||
| 19 | other mineral mined in Illinois is a sale at retail at the | ||||||
| 20 | place where the coal or other mineral mined in Illinois is | ||||||
| 21 | extracted from the earth. This paragraph does not apply to | ||||||
| 22 | coal or other mineral when it is delivered or shipped by the | ||||||
| 23 | seller to the purchaser at a point outside Illinois so that the | ||||||
| 24 | sale is exempt under the United States Constitution as a sale | ||||||
| 25 | in interstate or foreign commerce. | ||||||
| 26 | Nothing in this Section shall be construed to authorize a | ||||||
| |||||||
| |||||||
| 1 | county to impose a tax upon the privilege of engaging in any | ||||||
| 2 | business which under the Constitution of the United States may | ||||||
| 3 | not be made the subject of taxation by this State. | ||||||
| 4 | An ordinance or resolution imposing or discontinuing a tax | ||||||
| 5 | hereunder or effecting a change in the rate thereof shall be | ||||||
| 6 | adopted and a certified copy thereof filed with the Department | ||||||
| 7 | on or before the first day of June, whereupon the Department | ||||||
| 8 | shall proceed to administer and enforce this Section as of the | ||||||
| 9 | first day of September next following such adoption and | ||||||
| 10 | filing. Beginning January 1, 1992, an ordinance or resolution | ||||||
| 11 | imposing or discontinuing the tax hereunder or effecting a | ||||||
| 12 | change in the rate thereof shall be adopted and a certified | ||||||
| 13 | copy thereof filed with the Department on or before the first | ||||||
| 14 | day of July, whereupon the Department shall proceed to | ||||||
| 15 | administer and enforce this Section as of the first day of | ||||||
| 16 | October next following such adoption and filing. Beginning | ||||||
| 17 | January 1, 1993, an ordinance or resolution imposing or | ||||||
| 18 | discontinuing the tax hereunder or effecting a change in the | ||||||
| 19 | rate thereof shall be adopted and a certified copy thereof | ||||||
| 20 | filed with the Department on or before the first day of | ||||||
| 21 | October, whereupon the Department shall proceed to administer | ||||||
| 22 | and enforce this Section as of the first day of January next | ||||||
| 23 | following such adoption and filing. Beginning April 1, 1998, | ||||||
| 24 | an ordinance or resolution imposing or discontinuing the tax | ||||||
| 25 | hereunder or effecting a change in the rate thereof shall | ||||||
| 26 | either (i) be adopted and a certified copy thereof filed with | ||||||
| |||||||
| |||||||
| 1 | the Department on or before the first day of April, whereupon | ||||||
| 2 | the Department shall proceed to administer and enforce this | ||||||
| 3 | Section as of the first day of July next following the adoption | ||||||
| 4 | and filing; or (ii) be adopted and a certified copy thereof | ||||||
| 5 | filed with the Department on or before the first day of | ||||||
| 6 | October, whereupon the Department shall proceed to administer | ||||||
| 7 | and enforce this Section as of the first day of January next | ||||||
| 8 | following the adoption and filing. | ||||||
| 9 | When certifying the amount of a monthly disbursement to a | ||||||
| 10 | county under this Section, the Department shall increase or | ||||||
| 11 | decrease such amount by an amount necessary to offset any | ||||||
| 12 | misallocation of previous disbursements. The offset amount | ||||||
| 13 | shall be the amount erroneously disbursed within the previous | ||||||
| 14 | 6 months from the time a misallocation is discovered. | ||||||
| 15 | This Section shall be known and may be cited as the Home | ||||||
| 16 | Rule County Retailers' Occupation Tax Law. | ||||||
| 17 | (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; | ||||||
| 18 | 101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
| ||||||
| 19 | (55 ILCS 5/5-1006.5) | ||||||
| 20 | Sec. 5-1006.5. Special County Retailers' Occupation Tax | ||||||
| 21 | For Public Safety, Public Facilities, Mental Health, Substance | ||||||
| 22 | Abuse, or Transportation. | ||||||
| 23 | (a) The county board of any county may impose a tax upon | ||||||
| 24 | all persons engaged in the business of selling tangible | ||||||
| 25 | personal property, other than personal property titled or | ||||||
| |||||||
| |||||||
| 1 | registered with an agency of this State's government, at | ||||||
| 2 | retail in the county on the gross receipts from the sales made | ||||||
| 3 | in the course of business to provide revenue to be used | ||||||
| 4 | exclusively for public safety, public facility, mental health, | ||||||
| 5 | substance abuse, or transportation purposes in that county | ||||||
| 6 | (except as otherwise provided in this Section), if a | ||||||
| 7 | proposition for the tax has been submitted to the electors of | ||||||
| 8 | that county and approved by a majority of those voting on the | ||||||
| 9 | question. If imposed, this tax shall be imposed only in | ||||||
| 10 | one-quarter percent increments. By resolution, the county | ||||||
| 11 | board may order the proposition to be submitted at any | ||||||
| 12 | election. If the tax is imposed for transportation purposes | ||||||
| 13 | for expenditures for public highways or as authorized under | ||||||
| 14 | the Illinois Highway Code, the county board must publish | ||||||
| 15 | notice of the existence of its long-range highway | ||||||
| 16 | transportation plan as required or described in Section 5-301 | ||||||
| 17 | of the Illinois Highway Code and must make the plan publicly | ||||||
| 18 | available prior to approval of the ordinance or resolution | ||||||
| 19 | imposing the tax. If the tax is imposed for transportation | ||||||
| 20 | purposes for expenditures for passenger rail transportation, | ||||||
| 21 | the county board must publish notice of the existence of its | ||||||
| 22 | long-range passenger rail transportation plan and must make | ||||||
| 23 | the plan publicly available prior to approval of the ordinance | ||||||
| 24 | or resolution imposing the tax. | ||||||
| 25 | If a tax is imposed for public facilities purposes, then | ||||||
| 26 | the name of the project may be included in the proposition at | ||||||
| |||||||
| |||||||
| 1 | the discretion of the county board as determined in the | ||||||
| 2 | enabling resolution. For example, the "XXX Nursing Home" or | ||||||
| 3 | the "YYY Museum". | ||||||
| 4 | The county clerk shall certify the question to the proper | ||||||
| 5 | election authority, who shall submit the proposition at an | ||||||
| 6 | election in accordance with the general election law. | ||||||
| 7 | (1) The proposition for public safety purposes shall | ||||||
| 8 | be in substantially the following form: | ||||||
| 9 | "To pay for public safety purposes, shall (name of | ||||||
| 10 | county) be authorized to impose an increase on its share | ||||||
| 11 | of local sales taxes by (insert rate)?" | ||||||
| 12 | As additional information on the ballot below the | ||||||
| 13 | question shall appear the following: | ||||||
| 14 | "This would mean that a consumer would pay an | ||||||
| 15 | additional (insert amount) in sales tax for every $100 of | ||||||
| 16 | tangible personal property bought at retail." | ||||||
| 17 | The county board may also opt to establish a sunset | ||||||
| 18 | provision at which time the additional sales tax would | ||||||
| 19 | cease being collected, if not terminated earlier by a vote | ||||||
| 20 | of the county board. If the county board votes to include a | ||||||
| 21 | sunset provision, the proposition for public safety | ||||||
| 22 | purposes shall be in substantially the following form: | ||||||
| 23 | "To pay for public safety purposes, shall (name of | ||||||
| 24 | county) be authorized to impose an increase on its share | ||||||
| 25 | of local sales taxes by (insert rate) for a period not to | ||||||
| 26 | exceed (insert number of years)?" | ||||||
| |||||||
| |||||||
| 1 | As additional information on the ballot below the | ||||||
| 2 | question shall appear the following: | ||||||
| 3 | "This would mean that a consumer would pay an | ||||||
| 4 | additional (insert amount) in sales tax for every $100 of | ||||||
| 5 | tangible personal property bought at retail. If imposed, | ||||||
| 6 | the additional tax would cease being collected at the end | ||||||
| 7 | of (insert number of years), if not terminated earlier by | ||||||
| 8 | a vote of the county board." | ||||||
| 9 | For the purposes of the paragraph, "public safety | ||||||
| 10 | purposes" means crime prevention, detention, fire | ||||||
| 11 | fighting, police, medical, ambulance, or other emergency | ||||||
| 12 | services. | ||||||
| 13 | Votes shall be recorded as "Yes" or "No". | ||||||
| 14 | Beginning on the January 1 or July 1, whichever is | ||||||
| 15 | first, that occurs not less than 30 days after May 31, 2015 | ||||||
| 16 | (the effective date of Public Act 99-4), Adams County may | ||||||
| 17 | impose a public safety retailers' occupation tax and | ||||||
| 18 | service occupation tax at the rate of 0.25%, as provided | ||||||
| 19 | in the referendum approved by the voters on April 7, 2015, | ||||||
| 20 | notwithstanding the omission of the additional information | ||||||
| 21 | that is otherwise required to be printed on the ballot | ||||||
| 22 | below the question pursuant to this item (1). | ||||||
| 23 | (2) The proposition for transportation purposes shall | ||||||
| 24 | be in substantially the following form: | ||||||
| 25 | "To pay for improvements to roads and other | ||||||
| 26 | transportation purposes, shall (name of county) be | ||||||
| |||||||
| |||||||
| 1 | authorized to impose an increase on its share of local | ||||||
| 2 | sales taxes by (insert rate)?" | ||||||
| 3 | As additional information on the ballot below the | ||||||
| 4 | question shall appear the following: | ||||||
| 5 | "This would mean that a consumer would pay an | ||||||
| 6 | additional (insert amount) in sales tax for every $100 of | ||||||
| 7 | tangible personal property bought at retail." | ||||||
| 8 | The county board may also opt to establish a sunset | ||||||
| 9 | provision at which time the additional sales tax would | ||||||
| 10 | cease being collected, if not terminated earlier by a vote | ||||||
| 11 | of the county board. If the county board votes to include a | ||||||
| 12 | sunset provision, the proposition for transportation | ||||||
| 13 | purposes shall be in substantially the following form: | ||||||
| 14 | "To pay for road improvements and other transportation | ||||||
| 15 | purposes, shall (name of county) be authorized to impose | ||||||
| 16 | an increase on its share of local sales taxes by (insert | ||||||
| 17 | rate) for a period not to exceed (insert number of | ||||||
| 18 | years)?" | ||||||
| 19 | As additional information on the ballot below the | ||||||
| 20 | question shall appear the following: | ||||||
| 21 | "This would mean that a consumer would pay an | ||||||
| 22 | additional (insert amount) in sales tax for every $100 of | ||||||
| 23 | tangible personal property bought at retail. If imposed, | ||||||
| 24 | the additional tax would cease being collected at the end | ||||||
| 25 | of (insert number of years), if not terminated earlier by | ||||||
| 26 | a vote of the county board." | ||||||
| |||||||
| |||||||
| 1 | For the purposes of this paragraph, transportation | ||||||
| 2 | purposes means construction, maintenance, operation, and | ||||||
| 3 | improvement of public highways, any other purpose for | ||||||
| 4 | which a county may expend funds under the Illinois Highway | ||||||
| 5 | Code, and passenger rail transportation. | ||||||
| 6 | The votes shall be recorded as "Yes" or "No". | ||||||
| 7 | (3) The proposition for public facilities purposes | ||||||
| 8 | shall be in substantially the following form: | ||||||
| 9 | "To pay for public facilities purposes, shall (name of | ||||||
| 10 | county) be authorized to impose an increase on its share | ||||||
| 11 | of local sales taxes by (insert rate)?" | ||||||
| 12 | As additional information on the ballot below the | ||||||
| 13 | question shall appear the following: | ||||||
| 14 | "This would mean that a consumer would pay an | ||||||
| 15 | additional (insert amount) in sales tax for every $100 of | ||||||
| 16 | tangible personal property bought at retail." | ||||||
| 17 | The county board may also opt to establish a sunset | ||||||
| 18 | provision at which time the additional sales tax would | ||||||
| 19 | cease being collected, if not terminated earlier by a vote | ||||||
| 20 | of the county board. If the county board votes to include a | ||||||
| 21 | sunset provision, the proposition for public facilities | ||||||
| 22 | purposes shall be in substantially the following form: | ||||||
| 23 | "To pay for public facilities purposes, shall (name of | ||||||
| 24 | county) be authorized to impose an increase on its share | ||||||
| 25 | of local sales taxes by (insert rate) for a period not to | ||||||
| 26 | exceed (insert number of years)?" | ||||||
| |||||||
| |||||||
| 1 | As additional information on the ballot below the | ||||||
| 2 | question shall appear the following: | ||||||
| 3 | "This would mean that a consumer would pay an | ||||||
| 4 | additional (insert amount) in sales tax for every $100 of | ||||||
| 5 | tangible personal property bought at retail. If imposed, | ||||||
| 6 | the additional tax would cease being collected at the end | ||||||
| 7 | of (insert number of years), if not terminated earlier by | ||||||
| 8 | a vote of the county board." | ||||||
| 9 | For purposes of this Section, "public facilities | ||||||
| 10 | purposes" means the acquisition, development, | ||||||
| 11 | construction, reconstruction, rehabilitation, | ||||||
| 12 | improvement, financing, architectural planning, and | ||||||
| 13 | installation of capital facilities consisting of | ||||||
| 14 | buildings, structures, and durable equipment and for the | ||||||
| 15 | acquisition and improvement of real property and interest | ||||||
| 16 | in real property required, or expected to be required, in | ||||||
| 17 | connection with the public facilities, for use by the | ||||||
| 18 | county for the furnishing of governmental services to its | ||||||
| 19 | citizens, including, but not limited to, museums and | ||||||
| 20 | nursing homes. | ||||||
| 21 | The votes shall be recorded as "Yes" or "No". | ||||||
| 22 | (4) The proposition for mental health purposes shall | ||||||
| 23 | be in substantially the following form: | ||||||
| 24 | "To pay for mental health purposes, shall (name of | ||||||
| 25 | county) be authorized to impose an increase on its share | ||||||
| 26 | of local sales taxes by (insert rate)?" | ||||||
| |||||||
| |||||||
| 1 | As additional information on the ballot below the | ||||||
| 2 | question shall appear the following: | ||||||
| 3 | "This would mean that a consumer would pay an | ||||||
| 4 | additional (insert amount) in sales tax for every $100 of | ||||||
| 5 | tangible personal property bought at retail." | ||||||
| 6 | The county board may also opt to establish a sunset | ||||||
| 7 | provision at which time the additional sales tax would | ||||||
| 8 | cease being collected, if not terminated earlier by a vote | ||||||
| 9 | of the county board. If the county board votes to include a | ||||||
| 10 | sunset provision, the proposition for public facilities | ||||||
| 11 | purposes shall be in substantially the following form: | ||||||
| 12 | "To pay for mental health purposes, shall (name of | ||||||
| 13 | county) be authorized to impose an increase on its share | ||||||
| 14 | of local sales taxes by (insert rate) for a period not to | ||||||
| 15 | exceed (insert number of years)?" | ||||||
| 16 | As additional information on the ballot below the | ||||||
| 17 | question shall appear the following: | ||||||
| 18 | "This would mean that a consumer would pay an | ||||||
| 19 | additional (insert amount) in sales tax for every $100 of | ||||||
| 20 | tangible personal property bought at retail. If imposed, | ||||||
| 21 | the additional tax would cease being collected at the end | ||||||
| 22 | of (insert number of years), if not terminated earlier by | ||||||
| 23 | a vote of the county board." | ||||||
| 24 | The votes shall be recorded as "Yes" or "No". | ||||||
| 25 | (5) The proposition for substance abuse purposes shall | ||||||
| 26 | be in substantially the following form: | ||||||
| |||||||
| |||||||
| 1 | "To pay for substance abuse purposes, shall (name of | ||||||
| 2 | county) be authorized to impose an increase on its share | ||||||
| 3 | of local sales taxes by (insert rate)?" | ||||||
| 4 | As additional information on the ballot below the | ||||||
| 5 | question shall appear the following: | ||||||
| 6 | "This would mean that a consumer would pay an | ||||||
| 7 | additional (insert amount) in sales tax for every $100 of | ||||||
| 8 | tangible personal property bought at retail." | ||||||
| 9 | The county board may also opt to establish a sunset | ||||||
| 10 | provision at which time the additional sales tax would | ||||||
| 11 | cease being collected, if not terminated earlier by a vote | ||||||
| 12 | of the county board. If the county board votes to include a | ||||||
| 13 | sunset provision, the proposition for public facilities | ||||||
| 14 | purposes shall be in substantially the following form: | ||||||
| 15 | "To pay for substance abuse purposes, shall (name of | ||||||
| 16 | county) be authorized to impose an increase on its share | ||||||
| 17 | of local sales taxes by (insert rate) for a period not to | ||||||
| 18 | exceed (insert number of years)?" | ||||||
| 19 | As additional information on the ballot below the | ||||||
| 20 | question shall appear the following: | ||||||
| 21 | "This would mean that a consumer would pay an | ||||||
| 22 | additional (insert amount) in sales tax for every $100 of | ||||||
| 23 | tangible personal property bought at retail. If imposed, | ||||||
| 24 | the additional tax would cease being collected at the end | ||||||
| 25 | of (insert number of years), if not terminated earlier by | ||||||
| 26 | a vote of the county board." | ||||||
| |||||||
| |||||||
| 1 | The votes shall be recorded as "Yes" or "No". | ||||||
| 2 | If a majority of the electors voting on the proposition | ||||||
| 3 | vote in favor of it, the county may impose the tax. A county | ||||||
| 4 | may not submit more than one proposition authorized by this | ||||||
| 5 | Section to the electors at any one time. | ||||||
| 6 | This additional tax may not be imposed on tangible | ||||||
| 7 | personal property taxed at the 1% rate under the Retailers' | ||||||
| 8 | Occupation Tax Act (or at the 0% rate imposed under this | ||||||
| 9 | amendatory Act of the 102nd General Assembly). Beginning | ||||||
| 10 | December 1, 2019 and through December 31, 2020, this tax is not | ||||||
| 11 | imposed on sales of aviation fuel unless the tax revenue is | ||||||
| 12 | expended for airport-related purposes. If the county does not | ||||||
| 13 | have an airport-related purpose to which it dedicates aviation | ||||||
| 14 | fuel tax revenue, then aviation fuel is excluded from the tax. | ||||||
| 15 | The county must comply with the certification requirements for | ||||||
| 16 | airport-related purposes under Section 2-22 of the Retailers' | ||||||
| 17 | Occupation Tax Act. For purposes of this Section, | ||||||
| 18 | "airport-related purposes" has the meaning ascribed in Section | ||||||
| 19 | 6z-20.2 of the State Finance Act. Beginning January 1, 2021, | ||||||
| 20 | this tax is not imposed on sales of aviation fuel for so long | ||||||
| 21 | as the revenue use requirements of 49 U.S.C. 47107(b) and 49 | ||||||
| 22 | U.S.C. 47133 are binding on the county. The tax imposed by a | ||||||
| 23 | county under this Section and all civil penalties that may be | ||||||
| 24 | assessed as an incident of the tax shall be collected and | ||||||
| 25 | enforced by the Illinois Department of Revenue and deposited | ||||||
| 26 | into a special fund created for that purpose. The certificate | ||||||
| |||||||
| |||||||
| 1 | of registration that is issued by the Department to a retailer | ||||||
| 2 | under the Retailers' Occupation Tax Act shall permit the | ||||||
| 3 | retailer to engage in a business that is taxable without | ||||||
| 4 | registering separately with the Department under an ordinance | ||||||
| 5 | or resolution under this Section. The Department has full | ||||||
| 6 | power to administer and enforce this Section, to collect all | ||||||
| 7 | taxes and penalties due under this Section, to dispose of | ||||||
| 8 | taxes and penalties so collected in the manner provided in | ||||||
| 9 | this Section, and to determine all rights to credit memoranda | ||||||
| 10 | arising on account of the erroneous payment of a tax or penalty | ||||||
| 11 | under this Section. In the administration of and compliance | ||||||
| 12 | with this Section, the Department and persons who are subject | ||||||
| 13 | to this Section shall (i) have the same rights, remedies, | ||||||
| 14 | privileges, immunities, powers, and duties, (ii) be subject to | ||||||
| 15 | the same conditions, restrictions, limitations, penalties, and | ||||||
| 16 | definitions of terms, and (iii) employ the same modes of | ||||||
| 17 | procedure as are prescribed in Sections 1, 1a, 1a-1, 1d, 1e, | ||||||
| 18 | 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-70 (in respect to all | ||||||
| 19 | provisions contained in those Sections other than the State | ||||||
| 20 | rate of tax), 2a, 2b, 2c, 3 (except provisions relating to | ||||||
| 21 | transaction returns and quarter monthly payments, and except | ||||||
| 22 | that the retailer's discount is not allowed for taxes paid on | ||||||
| 23 | aviation fuel that are deposited into the Local Government | ||||||
| 24 | Aviation Trust Fund), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, | ||||||
| 25 | 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 11a, 12, and 13 | ||||||
| 26 | of the Retailers' Occupation Tax Act and Section 3-7 of the | ||||||
| |||||||
| |||||||
| 1 | Uniform Penalty and Interest Act as if those provisions were | ||||||
| 2 | set forth in this Section. | ||||||
| 3 | Persons subject to any tax imposed under the authority | ||||||
| 4 | granted in this Section may reimburse themselves for their | ||||||
| 5 | sellers' tax liability by separately stating the tax as an | ||||||
| 6 | additional charge, which charge may be stated in combination, | ||||||
| 7 | in a single amount, with State tax which sellers are required | ||||||
| 8 | to collect under the Use Tax Act, pursuant to such bracketed | ||||||
| 9 | schedules as the Department may prescribe. | ||||||
| 10 | Whenever the Department determines that a refund should be | ||||||
| 11 | made under this Section to a claimant instead of issuing a | ||||||
| 12 | credit memorandum, the Department shall notify the State | ||||||
| 13 | Comptroller, who shall cause the order to be drawn for the | ||||||
| 14 | amount specified and to the person named in the notification | ||||||
| 15 | from the Department. The refund shall be paid by the State | ||||||
| 16 | Treasurer out of the County Public Safety, Public Facilities, | ||||||
| 17 | Mental Health, Substance Abuse, or Transportation Retailers' | ||||||
| 18 | Occupation Tax Fund or the Local Government Aviation Trust | ||||||
| 19 | Fund, as appropriate. | ||||||
| 20 | (b) If a tax has been imposed under subsection (a), a | ||||||
| 21 | service occupation tax shall also be imposed at the same rate | ||||||
| 22 | upon all persons engaged, in the county, in the business of | ||||||
| 23 | making sales of service, who, as an incident to making those | ||||||
| 24 | sales of service, transfer tangible personal property within | ||||||
| 25 | the county as an incident to a sale of service. This tax may | ||||||
| 26 | not be imposed on tangible personal property taxed at the 1% | ||||||
| |||||||
| |||||||
| 1 | rate under the Service Occupation Tax Act (or at the 0% rate | ||||||
| 2 | imposed under this amendatory Act of the 102nd General | ||||||
| 3 | Assembly). Beginning December 1, 2019 and through December 31, | ||||||
| 4 | 2020, this tax is not imposed on sales of aviation fuel unless | ||||||
| 5 | the tax revenue is expended for airport-related purposes. If | ||||||
| 6 | the county does not have an airport-related purpose to which | ||||||
| 7 | it dedicates aviation fuel tax revenue, then aviation fuel is | ||||||
| 8 | excluded from the tax. The county must comply with the | ||||||
| 9 | certification requirements for airport-related purposes under | ||||||
| 10 | Section 2-22 of the Retailers' Occupation Tax Act. For | ||||||
| 11 | purposes of this Section, "airport-related purposes" has the | ||||||
| 12 | meaning ascribed in Section 6z-20.2 of the State Finance Act. | ||||||
| 13 | Beginning January 1, 2021, this tax is not imposed on sales of | ||||||
| 14 | aviation fuel for so long as the revenue use requirements of 49 | ||||||
| 15 | U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county. | ||||||
| 16 | The tax imposed under this subsection and all civil penalties | ||||||
| 17 | that may be assessed as an incident thereof shall be collected | ||||||
| 18 | and enforced by the Department of Revenue. The Department has | ||||||
| 19 | full power to administer and enforce this subsection; to | ||||||
| 20 | collect all taxes and penalties due hereunder; to dispose of | ||||||
| 21 | taxes and penalties so collected in the manner hereinafter | ||||||
| 22 | provided; and to determine all rights to credit memoranda | ||||||
| 23 | arising on account of the erroneous payment of tax or penalty | ||||||
| 24 | hereunder. In the administration of and compliance with this | ||||||
| 25 | subsection, the Department and persons who are subject to this | ||||||
| 26 | paragraph shall (i) have the same rights, remedies, | ||||||
| |||||||
| |||||||
| 1 | privileges, immunities, powers, and duties, (ii) be subject to | ||||||
| 2 | the same conditions, restrictions, limitations, penalties, | ||||||
| 3 | exclusions, exemptions, and definitions of terms, and (iii) | ||||||
| 4 | employ the same modes of procedure as are prescribed in | ||||||
| 5 | Sections 2 (except that the reference to State in the | ||||||
| 6 | definition of supplier maintaining a place of business in this | ||||||
| 7 | State shall mean the county), 2a, 2b, 2c, 3 through 3-50 (in | ||||||
| 8 | respect to all provisions therein other than the State rate of | ||||||
| 9 | tax), 4 (except that the reference to the State shall be to the | ||||||
| 10 | county), 5, 7, 8 (except that the jurisdiction to which the tax | ||||||
| 11 | shall be a debt to the extent indicated in that Section 8 shall | ||||||
| 12 | be the county), 9 (except as to the disposition of taxes and | ||||||
| 13 | penalties collected, and except that the retailer's discount | ||||||
| 14 | is not allowed for taxes paid on aviation fuel that are | ||||||
| 15 | deposited into the Local Government Aviation Trust Fund), 10, | ||||||
| 16 | 11, 12 (except the reference therein to Section 2b of the | ||||||
| 17 | Retailers' Occupation Tax Act), 13 (except that any reference | ||||||
| 18 | to the State shall mean the county), Section 15, 16, 17, 18, | ||||||
| 19 | 19, and 20 of the Service Occupation Tax Act, and Section 3-7 | ||||||
| 20 | of the Uniform Penalty and Interest Act, as fully as if those | ||||||
| 21 | provisions were set forth herein. | ||||||
| 22 | Persons subject to any tax imposed under the authority | ||||||
| 23 | granted in this subsection may reimburse themselves for their | ||||||
| 24 | serviceman's tax liability by separately stating the tax as an | ||||||
| 25 | additional charge, which charge may be stated in combination, | ||||||
| 26 | in a single amount, with State tax that servicemen are | ||||||
| |||||||
| |||||||
| 1 | authorized to collect under the Service Use Tax Act, in | ||||||
| 2 | accordance with such bracket schedules as the Department may | ||||||
| 3 | prescribe. | ||||||
| 4 | Whenever the Department determines that a refund should be | ||||||
| 5 | made under this subsection to a claimant instead of issuing a | ||||||
| 6 | credit memorandum, the Department shall notify the State | ||||||
| 7 | Comptroller, who shall cause the warrant to be drawn for the | ||||||
| 8 | amount specified, and to the person named, in the notification | ||||||
| 9 | from the Department. The refund shall be paid by the State | ||||||
| 10 | Treasurer out of the County Public Safety, Public Facilities, | ||||||
| 11 | Mental Health, Substance Abuse, or Transportation Retailers' | ||||||
| 12 | Occupation Fund or the Local Government Aviation Trust Fund, | ||||||
| 13 | as appropriate. | ||||||
| 14 | Nothing in this subsection shall be construed to authorize | ||||||
| 15 | the county to impose a tax upon the privilege of engaging in | ||||||
| 16 | any business which under the Constitution of the United States | ||||||
| 17 | may not be made the subject of taxation by the State. | ||||||
| 18 | (b-5) If, on January 1, 2025, a unit of local government | ||||||
| 19 | has in effect a tax under this Section, or if, after January 1, | ||||||
| 20 | 2025, a unit of local government imposes a tax under this | ||||||
| 21 | Section, then that tax applies to leases of tangible personal | ||||||
| 22 | property in effect, entered into, or renewed on or after that | ||||||
| 23 | date in the same manner as the tax under this Section and in | ||||||
| 24 | accordance with the changes made by this amendatory Act of the | ||||||
| 25 | 103rd General Assembly. | ||||||
| 26 | (c) Except as otherwise provided in this paragraph, the | ||||||
| |||||||
| |||||||
| 1 | Department shall immediately pay over to the State Treasurer, | ||||||
| 2 | ex officio, as trustee, all taxes and penalties collected | ||||||
| 3 | under this Section to be deposited into the County Public | ||||||
| 4 | Safety, Public Facilities, Mental Health, Substance Abuse, or | ||||||
| 5 | Transportation Retailers' Occupation Tax Fund, which shall be | ||||||
| 6 | an unappropriated trust fund held outside of the State | ||||||
| 7 | treasury. Taxes and penalties collected on aviation fuel sold | ||||||
| 8 | on or after December 1, 2019 and through December 31, 2020, | ||||||
| 9 | shall be immediately paid over by the Department to the State | ||||||
| 10 | Treasurer, ex officio, as trustee, for deposit into the Local | ||||||
| 11 | Government Aviation Trust Fund. The Department shall only pay | ||||||
| 12 | moneys into the Local Government Aviation Trust Fund under | ||||||
| 13 | this Act for so long as the revenue use requirements of 49 | ||||||
| 14 | U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county. | ||||||
| 15 | As soon as possible after the first day of each month, | ||||||
| 16 | beginning January 1, 2011, upon certification of the | ||||||
| 17 | Department of Revenue, the Comptroller shall order | ||||||
| 18 | transferred, and the Treasurer shall transfer, to the STAR | ||||||
| 19 | Bonds Revenue Fund the local sales tax increment, as defined | ||||||
| 20 | in the Innovation Development and Economy Act, collected under | ||||||
| 21 | this Section during the second preceding calendar month for | ||||||
| 22 | sales within a STAR bond district. | ||||||
| 23 | After the monthly transfer to the STAR Bonds Revenue Fund, | ||||||
| 24 | on or before the 25th day of each calendar month, the | ||||||
| 25 | Department shall prepare and certify to the Comptroller the | ||||||
| 26 | disbursement of stated sums of money to the counties from | ||||||
| |||||||
| |||||||
| 1 | which retailers have paid taxes or penalties to the Department | ||||||
| 2 | during the second preceding calendar month. The amount to be | ||||||
| 3 | paid to each county, and deposited by the county into its | ||||||
| 4 | special fund created for the purposes of this Section, shall | ||||||
| 5 | be the amount (not including credit memoranda and not | ||||||
| 6 | including taxes and penalties collected on aviation fuel sold | ||||||
| 7 | on or after December 1, 2019 and through December 31, 2020) | ||||||
| 8 | collected under this Section during the second preceding | ||||||
| 9 | calendar month by the Department plus an amount the Department | ||||||
| 10 | determines is necessary to offset any amounts that were | ||||||
| 11 | erroneously paid to a different taxing body, and not including | ||||||
| 12 | (i) an amount equal to the amount of refunds made during the | ||||||
| 13 | second preceding calendar month by the Department on behalf of | ||||||
| 14 | the county, (ii) any amount that the Department determines is | ||||||
| 15 | necessary to offset any amounts that were payable to a | ||||||
| 16 | different taxing body but were erroneously paid to the county, | ||||||
| 17 | (iii) any amounts that are transferred to the STAR Bonds | ||||||
| 18 | Revenue Fund, and (iv) 1.5% of the remainder, which shall be | ||||||
| 19 | transferred into the Tax Compliance and Administration Fund. | ||||||
| 20 | The Department, at the time of each monthly disbursement to | ||||||
| 21 | the counties, shall prepare and certify to the State | ||||||
| 22 | Comptroller the amount to be transferred into the Tax | ||||||
| 23 | Compliance and Administration Fund under this subsection. | ||||||
| 24 | Within 10 days after receipt by the Comptroller of the | ||||||
| 25 | disbursement certification to the counties and the Tax | ||||||
| 26 | Compliance and Administration Fund provided for in this | ||||||
| |||||||
| |||||||
| 1 | Section to be given to the Comptroller by the Department, the | ||||||
| 2 | Comptroller shall cause the orders to be drawn for the | ||||||
| 3 | respective amounts in accordance with directions contained in | ||||||
| 4 | the certification. | ||||||
| 5 | In addition to the disbursement required by the preceding | ||||||
| 6 | paragraph, an allocation shall be made in March of each year to | ||||||
| 7 | each county that received more than $500,000 in disbursements | ||||||
| 8 | under the preceding paragraph in the preceding calendar year. | ||||||
| 9 | The allocation shall be in an amount equal to the average | ||||||
| 10 | monthly distribution made to each such county under the | ||||||
| 11 | preceding paragraph during the preceding calendar year | ||||||
| 12 | (excluding the 2 months of highest receipts). The distribution | ||||||
| 13 | made in March of each year subsequent to the year in which an | ||||||
| 14 | allocation was made pursuant to this paragraph and the | ||||||
| 15 | preceding paragraph shall be reduced by the amount allocated | ||||||
| 16 | and disbursed under this paragraph in the preceding calendar | ||||||
| 17 | year. The Department shall prepare and certify to the | ||||||
| 18 | Comptroller for disbursement the allocations made in | ||||||
| 19 | accordance with this paragraph. | ||||||
| 20 | (d) For the purpose of determining the local governmental | ||||||
| 21 | unit whose tax is applicable, a retail sale by a producer of | ||||||
| 22 | coal or another mineral mined in Illinois is a sale at retail | ||||||
| 23 | at the place where the coal or other mineral mined in Illinois | ||||||
| 24 | is extracted from the earth. This paragraph does not apply to | ||||||
| 25 | coal or another mineral when it is delivered or shipped by the | ||||||
| 26 | seller to the purchaser at a point outside Illinois so that the | ||||||
| |||||||
| |||||||
| 1 | sale is exempt under the United States Constitution as a sale | ||||||
| 2 | in interstate or foreign commerce. | ||||||
| 3 | (e) Nothing in this Section shall be construed to | ||||||
| 4 | authorize a county to impose a tax upon the privilege of | ||||||
| 5 | engaging in any business that under the Constitution of the | ||||||
| 6 | United States may not be made the subject of taxation by this | ||||||
| 7 | State. | ||||||
| 8 | (e-5) If a county imposes a tax under this Section, the | ||||||
| 9 | county board may, by ordinance, discontinue or lower the rate | ||||||
| 10 | of the tax. If the county board lowers the tax rate or | ||||||
| 11 | discontinues the tax, a referendum must be held in accordance | ||||||
| 12 | with subsection (a) of this Section in order to increase the | ||||||
| 13 | rate of the tax or to reimpose the discontinued tax. | ||||||
| 14 | (f) Beginning April 1, 1998 and through December 31, 2013, | ||||||
| 15 | the results of any election authorizing a proposition to | ||||||
| 16 | impose a tax under this Section or effecting a change in the | ||||||
| 17 | rate of tax, or any ordinance lowering the rate or | ||||||
| 18 | discontinuing the tax, shall be certified by the county clerk | ||||||
| 19 | and filed with the Illinois Department of Revenue either (i) | ||||||
| 20 | on or before the first day of April, whereupon the Department | ||||||
| 21 | shall proceed to administer and enforce the tax as of the first | ||||||
| 22 | day of July next following the filing; or (ii) on or before the | ||||||
| 23 | first day of October, whereupon the Department shall proceed | ||||||
| 24 | to administer and enforce the tax as of the first day of | ||||||
| 25 | January next following the filing. | ||||||
| 26 | Beginning January 1, 2014, the results of any election | ||||||
| |||||||
| |||||||
| 1 | authorizing a proposition to impose a tax under this Section | ||||||
| 2 | or effecting an increase in the rate of tax, along with the | ||||||
| 3 | ordinance adopted to impose the tax or increase the rate of the | ||||||
| 4 | tax, or any ordinance adopted to lower the rate or discontinue | ||||||
| 5 | the tax, shall be certified by the county clerk and filed with | ||||||
| 6 | the Illinois Department of Revenue either (i) on or before the | ||||||
| 7 | first day of May, whereupon the Department shall proceed to | ||||||
| 8 | administer and enforce the tax as of the first day of July next | ||||||
| 9 | following the adoption and filing; or (ii) on or before the | ||||||
| 10 | first day of October, whereupon the Department shall proceed | ||||||
| 11 | to administer and enforce the tax as of the first day of | ||||||
| 12 | January next following the adoption and filing. | ||||||
| 13 | (g) When certifying the amount of a monthly disbursement | ||||||
| 14 | to a county under this Section, the Department shall increase | ||||||
| 15 | or decrease the amounts by an amount necessary to offset any | ||||||
| 16 | miscalculation of previous disbursements. The offset amount | ||||||
| 17 | shall be the amount erroneously disbursed within the previous | ||||||
| 18 | 6 months from the time a miscalculation is discovered. | ||||||
| 19 | (g-5) Every county authorized to levy a tax under this | ||||||
| 20 | Section shall, before it levies such tax, establish a 7-member | ||||||
| 21 | mental health board, which shall have the same powers and | ||||||
| 22 | duties and be constituted in the same manner as a community | ||||||
| 23 | mental health board established under the Community Mental | ||||||
| 24 | Health Act. Proceeds of the tax under this Section that are | ||||||
| 25 | earmarked for mental health or substance abuse purposes shall | ||||||
| 26 | be deposited into a special county occupation tax fund for | ||||||
| |||||||
| |||||||
| 1 | mental health and substance abuse. The 7-member mental health | ||||||
| 2 | board established under this subsection shall administer the | ||||||
| 3 | special county occupation tax fund for mental health and | ||||||
| 4 | substance abuse in the same manner as the community mental | ||||||
| 5 | health board administers the community mental health fund | ||||||
| 6 | under the Community Mental Health Act. | ||||||
| 7 | (h) This Section may be cited as the "Special County | ||||||
| 8 | Occupation Tax For Public Safety, Public Facilities, Mental | ||||||
| 9 | Health, Substance Abuse, or Transportation Law". | ||||||
| 10 | (i) For purposes of this Section, "public safety" | ||||||
| 11 | includes, but is not limited to, crime prevention, detention, | ||||||
| 12 | fire fighting, police, medical, ambulance, or other emergency | ||||||
| 13 | services. The county may share tax proceeds received under | ||||||
| 14 | this Section for public safety purposes, including proceeds | ||||||
| 15 | received before August 4, 2009 (the effective date of Public | ||||||
| 16 | Act 96-124), with any fire protection district located in the | ||||||
| 17 | county. For the purposes of this Section, "transportation" | ||||||
| 18 | includes, but is not limited to, the construction, | ||||||
| 19 | maintenance, operation, and improvement of public highways, | ||||||
| 20 | any other purpose for which a county may expend funds under the | ||||||
| 21 | Illinois Highway Code, and passenger rail transportation. For | ||||||
| 22 | the purposes of this Section, "public facilities purposes" | ||||||
| 23 | includes, but is not limited to, the acquisition, development, | ||||||
| 24 | construction, reconstruction, rehabilitation, improvement, | ||||||
| 25 | financing, architectural planning, and installation of capital | ||||||
| 26 | facilities consisting of buildings, structures, and durable | ||||||
| |||||||
| |||||||
| 1 | equipment and for the acquisition and improvement of real | ||||||
| 2 | property and interest in real property required, or expected | ||||||
| 3 | to be required, in connection with the public facilities, for | ||||||
| 4 | use by the county for the furnishing of governmental services | ||||||
| 5 | to its citizens, including, but not limited to, museums and | ||||||
| 6 | nursing homes. | ||||||
| 7 | (j) The Department may promulgate rules to implement | ||||||
| 8 | Public Act 95-1002 only to the extent necessary to apply the | ||||||
| 9 | existing rules for the Special County Retailers' Occupation | ||||||
| 10 | Tax for Public Safety to this new purpose for public | ||||||
| 11 | facilities. | ||||||
| 12 | (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; | ||||||
| 13 | 101-275, eff. 8-9-19; 101-604, eff. 12-13-19; 102-379, eff. | ||||||
| 14 | 1-1-22; 102-700, eff. 4-19-22.)
| ||||||
| 15 | (55 ILCS 5/5-1006.7) | ||||||
| 16 | Sec. 5-1006.7. School facility and resources occupation | ||||||
| 17 | taxes. | ||||||
| 18 | (a) In any county, a tax shall be imposed upon all persons | ||||||
| 19 | engaged in the business of selling tangible personal property, | ||||||
| 20 | other than personal property titled or registered with an | ||||||
| 21 | agency of this State's government, at retail in the county on | ||||||
| 22 | the gross receipts from the sales made in the course of | ||||||
| 23 | business to provide revenue to be used exclusively for (i) | ||||||
| 24 | school facility purposes (except as otherwise provided in this | ||||||
| 25 | Section), (ii) school resource officers and mental health | ||||||
| |||||||
| |||||||
| 1 | professionals, or (iii) school facility purposes, school | ||||||
| 2 | resource officers, and mental health professionals if a | ||||||
| 3 | proposition for the tax has been submitted to the electors of | ||||||
| 4 | that county and approved by a majority of those voting on the | ||||||
| 5 | question as provided in subsection (c). The tax under this | ||||||
| 6 | Section shall be imposed only in one-quarter percent | ||||||
| 7 | increments and may not exceed 1%. | ||||||
| 8 | This additional tax may not be imposed on tangible | ||||||
| 9 | personal property taxed at the 1% rate under the Retailers' | ||||||
| 10 | Occupation Tax Act (or at the 0% rate imposed under Public Act | ||||||
| 11 | 102-700). Beginning December 1, 2019 and through December 31, | ||||||
| 12 | 2020, this tax is not imposed on sales of aviation fuel unless | ||||||
| 13 | the tax revenue is expended for airport-related purposes. If | ||||||
| 14 | the county does not have an airport-related purpose to which | ||||||
| 15 | it dedicates aviation fuel tax revenue, then aviation fuel is | ||||||
| 16 | excluded from the tax. The county must comply with the | ||||||
| 17 | certification requirements for airport-related purposes under | ||||||
| 18 | Section 2-22 of the Retailers' Occupation Tax Act. For | ||||||
| 19 | purposes of this Section, "airport-related purposes" has the | ||||||
| 20 | meaning ascribed in Section 6z-20.2 of the State Finance Act. | ||||||
| 21 | Beginning January 1, 2021, this tax is not imposed on sales of | ||||||
| 22 | aviation fuel for so long as the revenue use requirements of 49 | ||||||
| 23 | U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the county. | ||||||
| 24 | The Department of Revenue has full power to administer and | ||||||
| 25 | enforce this subsection, to collect all taxes and penalties | ||||||
| 26 | due under this subsection, to dispose of taxes and penalties | ||||||
| |||||||
| |||||||
| 1 | so collected in the manner provided in this subsection, and to | ||||||
| 2 | determine all rights to credit memoranda arising on account of | ||||||
| 3 | the erroneous payment of a tax or penalty under this | ||||||
| 4 | subsection. The Department shall deposit all taxes and | ||||||
| 5 | penalties collected under this subsection into a special fund | ||||||
| 6 | created for that purpose. | ||||||
| 7 | In the administration of and compliance with this | ||||||
| 8 | subsection, the Department and persons who are subject to this | ||||||
| 9 | subsection (i) have the same rights, remedies, privileges, | ||||||
| 10 | immunities, powers, and duties, (ii) are subject to the same | ||||||
| 11 | conditions, restrictions, limitations, penalties, and | ||||||
| 12 | definitions of terms, and (iii) shall employ the same modes of | ||||||
| 13 | procedure as are set forth in Sections 1 through 1o, 2 through | ||||||
| 14 | 2-70 (in respect to all provisions contained in those Sections | ||||||
| 15 | other than the State rate of tax), 2a through 2h, 3 (except as | ||||||
| 16 | to the disposition of taxes and penalties collected, and | ||||||
| 17 | except that the retailer's discount is not allowed for taxes | ||||||
| 18 | paid on aviation fuel that are subject to the revenue use | ||||||
| 19 | requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, | ||||||
| 20 | 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, | ||||||
| 21 | 6d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' | ||||||
| 22 | Occupation Tax Act and all provisions of the Uniform Penalty | ||||||
| 23 | and Interest Act as if those provisions were set forth in this | ||||||
| 24 | subsection. | ||||||
| 25 | The certificate of registration that is issued by the | ||||||
| 26 | Department to a retailer under the Retailers' Occupation Tax | ||||||
| |||||||
| |||||||
| 1 | Act permits the retailer to engage in a business that is | ||||||
| 2 | taxable without registering separately with the Department | ||||||
| 3 | under an ordinance or resolution under this subsection. | ||||||
| 4 | Persons subject to any tax imposed under the authority | ||||||
| 5 | granted in this subsection may reimburse themselves for their | ||||||
| 6 | seller's tax liability by separately stating that tax as an | ||||||
| 7 | additional charge, which may be stated in combination, in a | ||||||
| 8 | single amount, with State tax that sellers are required to | ||||||
| 9 | collect under the Use Tax Act, pursuant to any bracketed | ||||||
| 10 | schedules set forth by the Department. | ||||||
| 11 | (b) If a tax has been imposed under subsection (a), then a | ||||||
| 12 | service occupation tax must also be imposed at the same rate | ||||||
| 13 | upon all persons engaged, in the county, in the business of | ||||||
| 14 | making sales of service, who, as an incident to making those | ||||||
| 15 | sales of service, transfer tangible personal property within | ||||||
| 16 | the county as an incident to a sale of service. | ||||||
| 17 | This tax may not be imposed on tangible personal property | ||||||
| 18 | taxed at the 1% rate under the Service Occupation Tax Act (or | ||||||
| 19 | at the 0% rate imposed under Public Act 102-700). Beginning | ||||||
| 20 | December 1, 2019 and through December 31, 2020, this tax is not | ||||||
| 21 | imposed on sales of aviation fuel unless the tax revenue is | ||||||
| 22 | expended for airport-related purposes. If the county does not | ||||||
| 23 | have an airport-related purpose to which it dedicates aviation | ||||||
| 24 | fuel tax revenue, then aviation fuel is excluded from the tax. | ||||||
| 25 | The county must comply with the certification requirements for | ||||||
| 26 | airport-related purposes under Section 2-22 of the Retailers' | ||||||
| |||||||
| |||||||
| 1 | Occupation Tax Act. For purposes of this Section, | ||||||
| 2 | "airport-related purposes" has the meaning ascribed in Section | ||||||
| 3 | 6z-20.2 of the State Finance Act. Beginning January 1, 2021, | ||||||
| 4 | this tax is not imposed on sales of aviation fuel for so long | ||||||
| 5 | as the revenue use requirements of 49 U.S.C. 47107(b) and 49 | ||||||
| 6 | U.S.C. 47133 are binding on the county. | ||||||
| 7 | The tax imposed under this subsection and all civil | ||||||
| 8 | penalties that may be assessed as an incident thereof shall be | ||||||
| 9 | collected and enforced by the Department and deposited into a | ||||||
| 10 | special fund created for that purpose. The Department has full | ||||||
| 11 | power to administer and enforce this subsection, to collect | ||||||
| 12 | all taxes and penalties due under this subsection, to dispose | ||||||
| 13 | of taxes and penalties so collected in the manner provided in | ||||||
| 14 | this subsection, and to determine all rights to credit | ||||||
| 15 | memoranda arising on account of the erroneous payment of a tax | ||||||
| 16 | or penalty under this subsection. | ||||||
| 17 | In the administration of and compliance with this | ||||||
| 18 | subsection, the Department and persons who are subject to this | ||||||
| 19 | subsection shall (i) have the same rights, remedies, | ||||||
| 20 | privileges, immunities, powers and duties, (ii) be subject to | ||||||
| 21 | the same conditions, restrictions, limitations, penalties and | ||||||
| 22 | definition of terms, and (iii) employ the same modes of | ||||||
| 23 | procedure as are set forth in Sections 2 (except that that | ||||||
| 24 | reference to State in the definition of supplier maintaining a | ||||||
| 25 | place of business in this State means the county), 2a through | ||||||
| 26 | 2d, 3 through 3-50 (in respect to all provisions contained in | ||||||
| |||||||
| |||||||
| 1 | those Sections other than the State rate of tax), 4 (except | ||||||
| 2 | that the reference to the State shall be to the county), 5, 7, | ||||||
| 3 | 8 (except that the jurisdiction to which the tax is a debt to | ||||||
| 4 | the extent indicated in that Section 8 is the county), 9 | ||||||
| 5 | (except as to the disposition of taxes and penalties | ||||||
| 6 | collected, and except that the retailer's discount is not | ||||||
| 7 | allowed for taxes paid on aviation fuel that are subject to the | ||||||
| 8 | revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. | ||||||
| 9 | 47133), 10, 11, 12 (except the reference therein to Section 2b | ||||||
| 10 | of the Retailers' Occupation Tax Act), 13 (except that any | ||||||
| 11 | reference to the State means the county), 15, 16, 17, 18, 19, | ||||||
| 12 | and 20 of the Service Occupation Tax Act and all provisions of | ||||||
| 13 | the Uniform Penalty and Interest Act, as fully as if those | ||||||
| 14 | provisions were set forth herein. | ||||||
| 15 | Persons subject to any tax imposed under the authority | ||||||
| 16 | granted in this subsection may reimburse themselves for their | ||||||
| 17 | serviceman's tax liability by separately stating the tax as an | ||||||
| 18 | additional charge, which may be stated in combination, in a | ||||||
| 19 | single amount, with State tax that servicemen are authorized | ||||||
| 20 | to collect under the Service Use Tax Act, pursuant to any | ||||||
| 21 | bracketed schedules set forth by the Department. | ||||||
| 22 | (b-5) If, on January 1, 2025, a unit of local government | ||||||
| 23 | has in effect a tax under this Section, or if, after January 1, | ||||||
| 24 | 2025, a unit of local government imposes a tax under this | ||||||
| 25 | Section, then that tax applies to leases of tangible personal | ||||||
| 26 | property in effect, entered into, or renewed on or after that | ||||||
| |||||||
| |||||||
| 1 | date in the same manner as the tax under this Section and in | ||||||
| 2 | accordance with the changes made by this amendatory Act of the | ||||||
| 3 | 103rd General Assembly. | ||||||
| 4 | (c) The tax under this Section may not be imposed until the | ||||||
| 5 | question of imposing the tax has been submitted to the | ||||||
| 6 | electors of the county at a regular election and approved by a | ||||||
| 7 | majority of the electors voting on the question. For all | ||||||
| 8 | regular elections held prior to August 23, 2011 (the effective | ||||||
| 9 | date of Public Act 97-542), upon a resolution by the county | ||||||
| 10 | board or a resolution by school district boards that represent | ||||||
| 11 | at least 51% of the student enrollment within the county, the | ||||||
| 12 | county board must certify the question to the proper election | ||||||
| 13 | authority in accordance with the Election Code. | ||||||
| 14 | For all regular elections held prior to August 23, 2011 | ||||||
| 15 | (the effective date of Public Act 97-542), the election | ||||||
| 16 | authority must submit the question in substantially the | ||||||
| 17 | following form: | ||||||
| 18 | Shall (name of county) be authorized to impose a | ||||||
| 19 | retailers' occupation tax and a service occupation tax | ||||||
| 20 | (commonly referred to as a "sales tax") at a rate of | ||||||
| 21 | (insert rate) to be used exclusively for school facility | ||||||
| 22 | purposes? | ||||||
| 23 | The election authority must record the votes as "Yes" or | ||||||
| 24 | "No". | ||||||
| 25 | If a majority of the electors voting on the question vote | ||||||
| 26 | in the affirmative, then the county may, thereafter, impose | ||||||
| |||||||
| |||||||
| 1 | the tax. | ||||||
| 2 | For all regular elections held on or after August 23, 2011 | ||||||
| 3 | (the effective date of Public Act 97-542), the regional | ||||||
| 4 | superintendent of schools for the county must, upon receipt of | ||||||
| 5 | a resolution or resolutions of school district boards that | ||||||
| 6 | represent more than 50% of the student enrollment within the | ||||||
| 7 | county, certify the question to the proper election authority | ||||||
| 8 | for submission to the electors of the county at the next | ||||||
| 9 | regular election at which the question lawfully may be | ||||||
| 10 | submitted to the electors, all in accordance with the Election | ||||||
| 11 | Code. | ||||||
| 12 | For all regular elections held on or after August 23, 2011 | ||||||
| 13 | (the effective date of Public Act 97-542) and before August | ||||||
| 14 | 23, 2019 (the effective date of Public Act 101-455), the | ||||||
| 15 | election authority must submit the question in substantially | ||||||
| 16 | the following form: | ||||||
| 17 | Shall a retailers' occupation tax and a service | ||||||
| 18 | occupation tax (commonly referred to as a "sales tax") be | ||||||
| 19 | imposed in (name of county) at a rate of (insert rate) to | ||||||
| 20 | be used exclusively for school facility purposes? | ||||||
| 21 | The election authority must record the votes as "Yes" or | ||||||
| 22 | "No". | ||||||
| 23 | If a majority of the electors voting on the question vote | ||||||
| 24 | in the affirmative, then the tax shall be imposed at the rate | ||||||
| 25 | set forth in the question. | ||||||
| 26 | For all regular elections held on or after August 23, 2019 | ||||||
| |||||||
| |||||||
| 1 | (the effective date of Public Act 101-455), the election | ||||||
| 2 | authority must submit the question as follows: | ||||||
| 3 | (1) If the referendum is to expand the use of revenues | ||||||
| 4 | from a currently imposed tax exclusively for school | ||||||
| 5 | facility purposes to include school resource officers and | ||||||
| 6 | mental health professionals, the question shall be in | ||||||
| 7 | substantially the following form: | ||||||
| 8 | In addition to school facility purposes, shall | ||||||
| 9 | (name of county) school districts be authorized to use | ||||||
| 10 | revenues from the tax commonly referred to as the | ||||||
| 11 | school facility sales tax that is currently imposed in | ||||||
| 12 | (name of county) at a rate of (insert rate) for school | ||||||
| 13 | resource officers and mental health professionals? | ||||||
| 14 | (2) If the referendum is to increase the rate of a tax | ||||||
| 15 | currently imposed exclusively for school facility purposes | ||||||
| 16 | at less than 1% and dedicate the additional revenues for | ||||||
| 17 | school resource officers and mental health professionals, | ||||||
| 18 | the question shall be in substantially the following form: | ||||||
| 19 | Shall the tax commonly referred to as the school | ||||||
| 20 | facility sales tax that is currently imposed in (name | ||||||
| 21 | of county) at the rate of (insert rate) be increased to | ||||||
| 22 | a rate of (insert rate) with the additional revenues | ||||||
| 23 | used exclusively for school resource officers and | ||||||
| 24 | mental health professionals? | ||||||
| 25 | (3) If the referendum is to impose a tax in a county | ||||||
| 26 | that has not previously imposed a tax under this Section | ||||||
| |||||||
| |||||||
| 1 | exclusively for school facility purposes, the question | ||||||
| 2 | shall be in substantially the following form: | ||||||
| 3 | Shall a retailers' occupation tax and a service | ||||||
| 4 | occupation tax (commonly referred to as a sales tax) | ||||||
| 5 | be imposed in (name of county) at a rate of (insert | ||||||
| 6 | rate) to be used exclusively for school facility | ||||||
| 7 | purposes? | ||||||
| 8 | (4) If the referendum is to impose a tax in a county | ||||||
| 9 | that has not previously imposed a tax under this Section | ||||||
| 10 | exclusively for school resource officers and mental health | ||||||
| 11 | professionals, the question shall be in substantially the | ||||||
| 12 | following form: | ||||||
| 13 | Shall a retailers' occupation tax and a service | ||||||
| 14 | occupation tax (commonly referred to as a sales tax) | ||||||
| 15 | be imposed in (name of county) at a rate of (insert | ||||||
| 16 | rate) to be used exclusively for school resource | ||||||
| 17 | officers and mental health professionals? | ||||||
| 18 | (5) If the referendum is to impose a tax in a county | ||||||
| 19 | that has not previously imposed a tax under this Section | ||||||
| 20 | exclusively for school facility purposes, school resource | ||||||
| 21 | officers, and mental health professionals, the question | ||||||
| 22 | shall be in substantially the following form: | ||||||
| 23 | Shall a retailers' occupation tax and a service | ||||||
| 24 | occupation tax (commonly referred to as a sales tax) | ||||||
| 25 | be imposed in (name of county) at a rate of (insert | ||||||
| 26 | rate) to be used exclusively for school facility | ||||||
| |||||||
| |||||||
| 1 | purposes, school resource officers, and mental health | ||||||
| 2 | professionals? | ||||||
| 3 | The election authority must record the votes as "Yes" or | ||||||
| 4 | "No". | ||||||
| 5 | If a majority of the electors voting on the question vote | ||||||
| 6 | in the affirmative, then the tax shall be imposed at the rate | ||||||
| 7 | set forth in the question. | ||||||
| 8 | For the purposes of this subsection (c), "enrollment" | ||||||
| 9 | means the head count of the students residing in the county on | ||||||
| 10 | the last school day of September of each year, which must be | ||||||
| 11 | reported on the Illinois State Board of Education Public | ||||||
| 12 | School Fall Enrollment/Housing Report. | ||||||
| 13 | (d) Except as otherwise provided, the Department shall | ||||||
| 14 | immediately pay over to the State Treasurer, ex officio, as | ||||||
| 15 | trustee, all taxes and penalties collected under this Section | ||||||
| 16 | to be deposited into the School Facility Occupation Tax Fund, | ||||||
| 17 | which shall be an unappropriated trust fund held outside the | ||||||
| 18 | State treasury. Taxes and penalties collected on aviation fuel | ||||||
| 19 | sold on or after December 1, 2019 and through December 31, | ||||||
| 20 | 2020, shall be immediately paid over by the Department to the | ||||||
| 21 | State Treasurer, ex officio, as trustee, for deposit into the | ||||||
| 22 | Local Government Aviation Trust Fund. The Department shall | ||||||
| 23 | only pay moneys into the Local Government Aviation Trust Fund | ||||||
| 24 | under this Section for so long as the revenue use requirements | ||||||
| 25 | of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the | ||||||
| 26 | county. | ||||||
| |||||||
| |||||||
| 1 | On or before the 25th day of each calendar month, the | ||||||
| 2 | Department shall prepare and certify to the Comptroller the | ||||||
| 3 | disbursement of stated sums of money to the regional | ||||||
| 4 | superintendents of schools in counties from which retailers or | ||||||
| 5 | servicemen have paid taxes or penalties to the Department | ||||||
| 6 | during the second preceding calendar month. The amount to be | ||||||
| 7 | paid to each regional superintendent of schools and disbursed | ||||||
| 8 | to him or her in accordance with Section 3-14.31 of the School | ||||||
| 9 | Code, is equal to the amount (not including credit memoranda | ||||||
| 10 | and not including taxes and penalties collected on aviation | ||||||
| 11 | fuel sold on or after December 1, 2019 and through December 31, | ||||||
| 12 | 2020) collected from the county under this Section during the | ||||||
| 13 | second preceding calendar month by the Department, (i) less 2% | ||||||
| 14 | of that amount (except the amount collected on aviation fuel | ||||||
| 15 | sold on or after December 1, 2019 and through December 31, | ||||||
| 16 | 2020), of which 50% shall be deposited into the Tax Compliance | ||||||
| 17 | and Administration Fund and shall be used by the Department, | ||||||
| 18 | subject to appropriation, to cover the costs of the Department | ||||||
| 19 | in administering and enforcing the provisions of this Section, | ||||||
| 20 | on behalf of the county, and 50% shall be distributed to the | ||||||
| 21 | regional superintendent of schools to cover the costs in | ||||||
| 22 | administering and enforcing the provisions of this Section; | ||||||
| 23 | (ii) plus an amount that the Department determines is | ||||||
| 24 | necessary to offset any amounts that were erroneously paid to | ||||||
| 25 | a different taxing body; (iii) less an amount equal to the | ||||||
| 26 | amount of refunds made during the second preceding calendar | ||||||
| |||||||
| |||||||
| 1 | month by the Department on behalf of the county; and (iv) less | ||||||
| 2 | any amount that the Department determines is necessary to | ||||||
| 3 | offset any amounts that were payable to a different taxing | ||||||
| 4 | body but were erroneously paid to the county. When certifying | ||||||
| 5 | the amount of a monthly disbursement to a regional | ||||||
| 6 | superintendent of schools under this Section, the Department | ||||||
| 7 | shall increase or decrease the amounts by an amount necessary | ||||||
| 8 | to offset any miscalculation of previous disbursements within | ||||||
| 9 | the previous 6 months from the time a miscalculation is | ||||||
| 10 | discovered. | ||||||
| 11 | Within 10 days after receipt by the Comptroller from the | ||||||
| 12 | Department of the disbursement certification to the regional | ||||||
| 13 | superintendents of the schools provided for in this Section, | ||||||
| 14 | the Comptroller shall cause the orders to be drawn for the | ||||||
| 15 | respective amounts in accordance with directions contained in | ||||||
| 16 | the certification. | ||||||
| 17 | If the Department determines that a refund should be made | ||||||
| 18 | under this Section to a claimant instead of issuing a credit | ||||||
| 19 | memorandum, then the Department shall notify the Comptroller, | ||||||
| 20 | who shall cause the order to be drawn for the amount specified | ||||||
| 21 | and to the person named in the notification from the | ||||||
| 22 | Department. The refund shall be paid by the Treasurer out of | ||||||
| 23 | the School Facility Occupation Tax Fund or the Local | ||||||
| 24 | Government Aviation Trust Fund, as appropriate. | ||||||
| 25 | (e) For the purposes of determining the local governmental | ||||||
| 26 | unit whose tax is applicable, a retail sale by a producer of | ||||||
| |||||||
| |||||||
| 1 | coal or another mineral mined in Illinois is a sale at retail | ||||||
| 2 | at the place where the coal or other mineral mined in Illinois | ||||||
| 3 | is extracted from the earth. This subsection does not apply to | ||||||
| 4 | coal or another mineral when it is delivered or shipped by the | ||||||
| 5 | seller to the purchaser at a point outside Illinois so that the | ||||||
| 6 | sale is exempt under the United States Constitution as a sale | ||||||
| 7 | in interstate or foreign commerce. | ||||||
| 8 | (f) Nothing in this Section may be construed to authorize | ||||||
| 9 | a tax to be imposed upon the privilege of engaging in any | ||||||
| 10 | business that under the Constitution of the United States may | ||||||
| 11 | not be made the subject of taxation by this State. | ||||||
| 12 | (g) If a county board imposes a tax under this Section | ||||||
| 13 | pursuant to a referendum held before August 23, 2011 (the | ||||||
| 14 | effective date of Public Act 97-542) at a rate below the rate | ||||||
| 15 | set forth in the question approved by a majority of electors of | ||||||
| 16 | that county voting on the question as provided in subsection | ||||||
| 17 | (c), then the county board may, by ordinance, increase the | ||||||
| 18 | rate of the tax up to the rate set forth in the question | ||||||
| 19 | approved by a majority of electors of that county voting on the | ||||||
| 20 | question as provided in subsection (c). If a county board | ||||||
| 21 | imposes a tax under this Section pursuant to a referendum held | ||||||
| 22 | before August 23, 2011 (the effective date of Public Act | ||||||
| 23 | 97-542), then the board may, by ordinance, discontinue or | ||||||
| 24 | reduce the rate of the tax. If a tax is imposed under this | ||||||
| 25 | Section pursuant to a referendum held on or after August 23, | ||||||
| 26 | 2011 (the effective date of Public Act 97-542) and before | ||||||
| |||||||
| |||||||
| 1 | August 23, 2019 (the effective date of Public Act 101-455), | ||||||
| 2 | then the county board may reduce or discontinue the tax, but | ||||||
| 3 | only in accordance with subsection (h-5) of this Section. If a | ||||||
| 4 | tax is imposed under this Section pursuant to a referendum | ||||||
| 5 | held on or after August 23, 2019 (the effective date of Public | ||||||
| 6 | Act 101-455), then the county board may reduce or discontinue | ||||||
| 7 | the tax, but only in accordance with subsection (h-10). If, | ||||||
| 8 | however, a school board issues bonds that are secured by the | ||||||
| 9 | proceeds of the tax under this Section, then the county board | ||||||
| 10 | may not reduce the tax rate or discontinue the tax if that rate | ||||||
| 11 | reduction or discontinuance would adversely affect the school | ||||||
| 12 | board's ability to pay the principal and interest on those | ||||||
| 13 | bonds as they become due or necessitate the extension of | ||||||
| 14 | additional property taxes to pay the principal and interest on | ||||||
| 15 | those bonds. If the county board reduces the tax rate or | ||||||
| 16 | discontinues the tax, then a referendum must be held in | ||||||
| 17 | accordance with subsection (c) of this Section in order to | ||||||
| 18 | increase the rate of the tax or to reimpose the discontinued | ||||||
| 19 | tax. | ||||||
| 20 | Until January 1, 2014, the results of any election that | ||||||
| 21 | imposes, reduces, or discontinues a tax under this Section | ||||||
| 22 | must be certified by the election authority, and any ordinance | ||||||
| 23 | that increases or lowers the rate or discontinues the tax must | ||||||
| 24 | be certified by the county clerk and, in each case, filed with | ||||||
| 25 | the Illinois Department of Revenue either (i) on or before the | ||||||
| 26 | first day of April, whereupon the Department shall proceed to | ||||||
| |||||||
| |||||||
| 1 | administer and enforce the tax or change in the rate as of the | ||||||
| 2 | first day of July next following the filing; or (ii) on or | ||||||
| 3 | before the first day of October, whereupon the Department | ||||||
| 4 | shall proceed to administer and enforce the tax or change in | ||||||
| 5 | the rate as of the first day of January next following the | ||||||
| 6 | filing. | ||||||
| 7 | Beginning January 1, 2014, the results of any election | ||||||
| 8 | that imposes, reduces, or discontinues a tax under this | ||||||
| 9 | Section must be certified by the election authority, and any | ||||||
| 10 | ordinance that increases or lowers the rate or discontinues | ||||||
| 11 | the tax must be certified by the county clerk and, in each | ||||||
| 12 | case, filed with the Illinois Department of Revenue either (i) | ||||||
| 13 | on or before the first day of May, whereupon the Department | ||||||
| 14 | shall proceed to administer and enforce the tax or change in | ||||||
| 15 | the rate as of the first day of July next following the filing; | ||||||
| 16 | or (ii) on or before the first day of October, whereupon the | ||||||
| 17 | Department shall proceed to administer and enforce the tax or | ||||||
| 18 | change in the rate as of the first day of January next | ||||||
| 19 | following the filing. | ||||||
| 20 | (h) For purposes of this Section, "school facility | ||||||
| 21 | purposes" means (i) the acquisition, development, | ||||||
| 22 | construction, reconstruction, rehabilitation, improvement, | ||||||
| 23 | financing, architectural planning, and installation of capital | ||||||
| 24 | facilities consisting of buildings, structures, and durable | ||||||
| 25 | equipment and for the acquisition and improvement of real | ||||||
| 26 | property and interest in real property required, or expected | ||||||
| |||||||
| |||||||
| 1 | to be required, in connection with the capital facilities and | ||||||
| 2 | (ii) the payment of bonds or other obligations heretofore or | ||||||
| 3 | hereafter issued, including bonds or other obligations | ||||||
| 4 | heretofore or hereafter issued to refund or to continue to | ||||||
| 5 | refund bonds or other obligations issued, for school facility | ||||||
| 6 | purposes, provided that the taxes levied to pay those bonds | ||||||
| 7 | are abated by the amount of the taxes imposed under this | ||||||
| 8 | Section that are used to pay those bonds. "School facility | ||||||
| 9 | purposes" also includes fire prevention, safety, energy | ||||||
| 10 | conservation, accessibility, school security, and specified | ||||||
| 11 | repair purposes set forth under Section 17-2.11 of the School | ||||||
| 12 | Code. | ||||||
| 13 | (h-5) A county board in a county where a tax has been | ||||||
| 14 | imposed under this Section pursuant to a referendum held on or | ||||||
| 15 | after August 23, 2011 (the effective date of Public Act | ||||||
| 16 | 97-542) and before August 23, 2019 (the effective date of | ||||||
| 17 | Public Act 101-455) may, by ordinance or resolution, submit to | ||||||
| 18 | the voters of the county the question of reducing or | ||||||
| 19 | discontinuing the tax. In the ordinance or resolution, the | ||||||
| 20 | county board shall certify the question to the proper election | ||||||
| 21 | authority in accordance with the Election Code. The election | ||||||
| 22 | authority must submit the question in substantially the | ||||||
| 23 | following form: | ||||||
| 24 | Shall the school facility retailers' occupation tax | ||||||
| 25 | and service occupation tax (commonly referred to as the | ||||||
| 26 | "school facility sales tax") currently imposed in (name of | ||||||
| |||||||
| |||||||
| 1 | county) at a rate of (insert rate) be (reduced to (insert | ||||||
| 2 | rate))(discontinued)? | ||||||
| 3 | If a majority of the electors voting on the question vote in | ||||||
| 4 | the affirmative, then, subject to the provisions of subsection | ||||||
| 5 | (g) of this Section, the tax shall be reduced or discontinued | ||||||
| 6 | as set forth in the question. | ||||||
| 7 | (h-10) A county board in a county where a tax has been | ||||||
| 8 | imposed under this Section pursuant to a referendum held on or | ||||||
| 9 | after August 23, 2019 (the effective date of Public Act | ||||||
| 10 | 101-455) may, by ordinance or resolution, submit to the voters | ||||||
| 11 | of the county the question of reducing or discontinuing the | ||||||
| 12 | tax. In the ordinance or resolution, the county board shall | ||||||
| 13 | certify the question to the proper election authority in | ||||||
| 14 | accordance with the Election Code. The election authority must | ||||||
| 15 | submit the question in substantially the following form: | ||||||
| 16 | Shall the school facility and resources retailers' | ||||||
| 17 | occupation tax and service occupation tax (commonly | ||||||
| 18 | referred to as the school facility and resources sales | ||||||
| 19 | tax) currently imposed in (name of county) at a rate of | ||||||
| 20 | (insert rate) be (reduced to (insert rate)) | ||||||
| 21 | (discontinued)? | ||||||
| 22 | The election authority must record the votes as "Yes" or | ||||||
| 23 | "No". | ||||||
| 24 | If a majority of the electors voting on the question vote | ||||||
| 25 | in the affirmative, then, subject to the provisions of | ||||||
| 26 | subsection (g) of this Section, the tax shall be reduced or | ||||||
| |||||||
| |||||||
| 1 | discontinued as set forth in the question. | ||||||
| 2 | (i) This Section does not apply to Cook County. | ||||||
| 3 | (j) This Section may be cited as the County School | ||||||
| 4 | Facility and Resources Occupation Tax Law. | ||||||
| 5 | (Source: P.A. 102-700, eff. 4-19-22; 102-1062, eff. 7-1-22; | ||||||
| 6 | 103-154, eff. 6-30-23.)
| ||||||
| 7 | (55 ILCS 5/5-1007) (from Ch. 34, par. 5-1007) | ||||||
| 8 | Sec. 5-1007. Home Rule County Service Occupation Tax Law. | ||||||
| 9 | The corporate authorities of a home rule county may impose a | ||||||
| 10 | tax upon all persons engaged, in such county, in the business | ||||||
| 11 | of making sales of service at the same rate of tax imposed | ||||||
| 12 | pursuant to Section 5-1006 of the selling price of all | ||||||
| 13 | tangible personal property transferred by such servicemen | ||||||
| 14 | either in the form of tangible personal property or in the form | ||||||
| 15 | of real estate as an incident to a sale of service. If imposed, | ||||||
| 16 | such tax shall only be imposed in 1/4% increments. On and after | ||||||
| 17 | September 1, 1991, this additional tax may not be imposed on | ||||||
| 18 | tangible personal property taxed at the 1% rate under the | ||||||
| 19 | Service Occupation Tax Act (or at the 0% rate imposed under | ||||||
| 20 | this amendatory Act of the 102nd General Assembly). Beginning | ||||||
| 21 | December 1, 2019, this tax is not imposed on sales of aviation | ||||||
| 22 | fuel unless the tax revenue is expended for airport-related | ||||||
| 23 | purposes. If the county does not have an airport-related | ||||||
| 24 | purpose to which it dedicates aviation fuel tax revenue, then | ||||||
| 25 | aviation fuel is excluded from the tax. The county must comply | ||||||
| |||||||
| |||||||
| 1 | with the certification requirements for airport-related | ||||||
| 2 | purposes under Section 2-22 of the Retailers' Occupation Tax | ||||||
| 3 | Act. For purposes of this Section, "airport-related purposes" | ||||||
| 4 | has the meaning ascribed in Section 6z-20.2 of the State | ||||||
| 5 | Finance Act. This exclusion for aviation fuel only applies for | ||||||
| 6 | so long as the revenue use requirements of 49 U.S.C. 47107(b) | ||||||
| 7 | and 49 U.S.C. 47133 are binding on the county. The changes made | ||||||
| 8 | to this Section by this amendatory Act of the 101st General | ||||||
| 9 | Assembly are a denial and limitation of home rule powers and | ||||||
| 10 | functions under subsection (g) of Section 6 of Article VII of | ||||||
| 11 | the Illinois Constitution. The tax imposed by a home rule | ||||||
| 12 | county pursuant to this Section and all civil penalties that | ||||||
| 13 | may be assessed as an incident thereof shall be collected and | ||||||
| 14 | enforced by the State Department of Revenue. The certificate | ||||||
| 15 | of registration which is issued by the Department to a | ||||||
| 16 | retailer under the Retailers' Occupation Tax Act or under the | ||||||
| 17 | Service Occupation Tax Act shall permit such registrant to | ||||||
| 18 | engage in a business which is taxable under any ordinance or | ||||||
| 19 | resolution enacted pursuant to this Section without | ||||||
| 20 | registering separately with the Department under such | ||||||
| 21 | ordinance or resolution or under this Section. The Department | ||||||
| 22 | shall have full power to administer and enforce this Section; | ||||||
| 23 | to collect all taxes and penalties due hereunder; to dispose | ||||||
| 24 | of taxes and penalties so collected in the manner hereinafter | ||||||
| 25 | provided; and to determine all rights to credit memoranda | ||||||
| 26 | arising on account of the erroneous payment of tax or penalty | ||||||
| |||||||
| |||||||
| 1 | hereunder. In the administration of, and compliance with, this | ||||||
| 2 | Section the Department and persons who are subject to this | ||||||
| 3 | Section shall have the same rights, remedies, privileges, | ||||||
| 4 | immunities, powers and duties, and be subject to the same | ||||||
| 5 | conditions, restrictions, limitations, penalties and | ||||||
| 6 | definitions of terms, and employ the same modes of procedure, | ||||||
| 7 | as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in | ||||||
| 8 | respect to all provisions therein other than the State rate of | ||||||
| 9 | tax), 4 (except that the reference to the State shall be to the | ||||||
| 10 | taxing county), 5, 7, 8 (except that the jurisdiction to which | ||||||
| 11 | the tax shall be a debt to the extent indicated in that Section | ||||||
| 12 | 8 shall be the taxing county), 9 (except as to the disposition | ||||||
| 13 | of taxes and penalties collected, and except that the returned | ||||||
| 14 | merchandise credit for this county tax may not be taken | ||||||
| 15 | against any State tax, and except that the retailer's discount | ||||||
| 16 | is not allowed for taxes paid on aviation fuel that are subject | ||||||
| 17 | to the revenue use requirements of 49 U.S.C. 47107(b) and 49 | ||||||
| 18 | U.S.C. 47133), 10, 11, 12 (except the reference therein to | ||||||
| 19 | Section 2b of the Retailers' Occupation Tax Act), 13 (except | ||||||
| 20 | that any reference to the State shall mean the taxing county), | ||||||
| 21 | the first paragraph of Section 15, 16, 17, 18, 19 and 20 of the | ||||||
| 22 | Service Occupation Tax Act and Section 3-7 of the Uniform | ||||||
| 23 | Penalty and Interest Act, as fully as if those provisions were | ||||||
| 24 | set forth herein. | ||||||
| 25 | No tax may be imposed by a home rule county pursuant to | ||||||
| 26 | this Section unless such county also imposes a tax at the same | ||||||
| |||||||
| |||||||
| 1 | rate pursuant to Section 5-1006. | ||||||
| 2 | If, on January 1, 2025, a unit of local government has in | ||||||
| 3 | effect a tax under this Section, or if, after January 1, 2025, | ||||||
| 4 | a unit of local government imposes a tax under this Section, | ||||||
| 5 | then that tax applies to leases of tangible personal property | ||||||
| 6 | in effect, entered into, or renewed on or after that date in | ||||||
| 7 | the same manner as the tax under this Section and in accordance | ||||||
| 8 | with the changes made by this amendatory Act of the 103rd | ||||||
| 9 | General Assembly. | ||||||
| 10 | Persons subject to any tax imposed pursuant to the | ||||||
| 11 | authority granted in this Section may reimburse themselves for | ||||||
| 12 | their serviceman's tax liability hereunder by separately | ||||||
| 13 | stating such tax as an additional charge, which charge may be | ||||||
| 14 | stated in combination, in a single amount, with State tax | ||||||
| 15 | which servicemen are authorized to collect under the Service | ||||||
| 16 | Use Tax Act, pursuant to such bracket schedules as the | ||||||
| 17 | Department may prescribe. | ||||||
| 18 | Whenever the Department determines that a refund should be | ||||||
| 19 | made under this Section to a claimant instead of issuing | ||||||
| 20 | credit memorandum, the Department shall notify the State | ||||||
| 21 | Comptroller, who shall cause the order to be drawn for the | ||||||
| 22 | amount specified, and to the person named, in such | ||||||
| 23 | notification from the Department. Such refund shall be paid by | ||||||
| 24 | the State Treasurer out of the home rule county retailers' | ||||||
| 25 | occupation tax fund or the Local Government Aviation Trust | ||||||
| 26 | Fund, as appropriate. | ||||||
| |||||||
| |||||||
| 1 | Except as otherwise provided in this paragraph, the | ||||||
| 2 | Department shall forthwith pay over to the State Treasurer, ex | ||||||
| 3 | officio, as trustee, all taxes and penalties collected | ||||||
| 4 | hereunder for deposit into the Home Rule County Retailers' | ||||||
| 5 | Occupation Tax Fund. Taxes and penalties collected on aviation | ||||||
| 6 | fuel sold on or after December 1, 2019, shall be immediately | ||||||
| 7 | paid over by the Department to the State Treasurer, ex | ||||||
| 8 | officio, as trustee, for deposit into the Local Government | ||||||
| 9 | Aviation Trust Fund. The Department shall only pay moneys into | ||||||
| 10 | the Local Government Aviation Trust Fund under this Section | ||||||
| 11 | for so long as the revenue use requirements of 49 U.S.C. | ||||||
| 12 | 47107(b) and 49 U.S.C. 47133 are binding on the county. | ||||||
| 13 | As soon as possible after the first day of each month, | ||||||
| 14 | beginning January 1, 2011, upon certification of the | ||||||
| 15 | Department of Revenue, the Comptroller shall order | ||||||
| 16 | transferred, and the Treasurer shall transfer, to the STAR | ||||||
| 17 | Bonds Revenue Fund the local sales tax increment, as defined | ||||||
| 18 | in the Innovation Development and Economy Act, collected under | ||||||
| 19 | this Section during the second preceding calendar month for | ||||||
| 20 | sales within a STAR bond district. | ||||||
| 21 | After the monthly transfer to the STAR Bonds Revenue Fund, | ||||||
| 22 | on or before the 25th day of each calendar month, the | ||||||
| 23 | Department shall prepare and certify to the Comptroller the | ||||||
| 24 | disbursement of stated sums of money to named counties, the | ||||||
| 25 | counties to be those from which suppliers and servicemen have | ||||||
| 26 | paid taxes or penalties hereunder to the Department during the | ||||||
| |||||||
| |||||||
| 1 | second preceding calendar month. The amount to be paid to each | ||||||
| 2 | county shall be the amount (not including credit memoranda and | ||||||
| 3 | not including taxes and penalties collected on aviation fuel | ||||||
| 4 | sold on or after December 1, 2019) collected hereunder during | ||||||
| 5 | the second preceding calendar month by the Department, and not | ||||||
| 6 | including an amount equal to the amount of refunds made during | ||||||
| 7 | the second preceding calendar month by the Department on | ||||||
| 8 | behalf of such county, and not including any amounts that are | ||||||
| 9 | transferred to the STAR Bonds Revenue Fund, less 1.5% of the | ||||||
| 10 | remainder, which the Department shall transfer into the Tax | ||||||
| 11 | Compliance and Administration Fund. The Department, at the | ||||||
| 12 | time of each monthly disbursement to the counties, shall | ||||||
| 13 | prepare and certify to the State Comptroller the amount to be | ||||||
| 14 | transferred into the Tax Compliance and Administration Fund | ||||||
| 15 | under this Section. Within 10 days after receipt, by the | ||||||
| 16 | Comptroller, of the disbursement certification to the counties | ||||||
| 17 | and the Tax Compliance and Administration Fund provided for in | ||||||
| 18 | this Section to be given to the Comptroller by the Department, | ||||||
| 19 | the Comptroller shall cause the orders to be drawn for the | ||||||
| 20 | respective amounts in accordance with the directions contained | ||||||
| 21 | in such certification. | ||||||
| 22 | In addition to the disbursement required by the preceding | ||||||
| 23 | paragraph, an allocation shall be made in each year to each | ||||||
| 24 | county which received more than $500,000 in disbursements | ||||||
| 25 | under the preceding paragraph in the preceding calendar year. | ||||||
| 26 | The allocation shall be in an amount equal to the average | ||||||
| |||||||
| |||||||
| 1 | monthly distribution made to each such county under the | ||||||
| 2 | preceding paragraph during the preceding calendar year | ||||||
| 3 | (excluding the 2 months of highest receipts). The distribution | ||||||
| 4 | made in March of each year subsequent to the year in which an | ||||||
| 5 | allocation was made pursuant to this paragraph and the | ||||||
| 6 | preceding paragraph shall be reduced by the amount allocated | ||||||
| 7 | and disbursed under this paragraph in the preceding calendar | ||||||
| 8 | year. The Department shall prepare and certify to the | ||||||
| 9 | Comptroller for disbursement the allocations made in | ||||||
| 10 | accordance with this paragraph. | ||||||
| 11 | Nothing in this Section shall be construed to authorize a | ||||||
| 12 | county to impose a tax upon the privilege of engaging in any | ||||||
| 13 | business which under the Constitution of the United States may | ||||||
| 14 | not be made the subject of taxation by this State. | ||||||
| 15 | An ordinance or resolution imposing or discontinuing a tax | ||||||
| 16 | hereunder or effecting a change in the rate thereof shall be | ||||||
| 17 | adopted and a certified copy thereof filed with the Department | ||||||
| 18 | on or before the first day of June, whereupon the Department | ||||||
| 19 | shall proceed to administer and enforce this Section as of the | ||||||
| 20 | first day of September next following such adoption and | ||||||
| 21 | filing. Beginning January 1, 1992, an ordinance or resolution | ||||||
| 22 | imposing or discontinuing the tax hereunder or effecting a | ||||||
| 23 | change in the rate thereof shall be adopted and a certified | ||||||
| 24 | copy thereof filed with the Department on or before the first | ||||||
| 25 | day of July, whereupon the Department shall proceed to | ||||||
| 26 | administer and enforce this Section as of the first day of | ||||||
| |||||||
| |||||||
| 1 | October next following such adoption and filing. Beginning | ||||||
| 2 | January 1, 1993, an ordinance or resolution imposing or | ||||||
| 3 | discontinuing the tax hereunder or effecting a change in the | ||||||
| 4 | rate thereof shall be adopted and a certified copy thereof | ||||||
| 5 | filed with the Department on or before the first day of | ||||||
| 6 | October, whereupon the Department shall proceed to administer | ||||||
| 7 | and enforce this Section as of the first day of January next | ||||||
| 8 | following such adoption and filing. Beginning April 1, 1998, | ||||||
| 9 | an ordinance or resolution imposing or discontinuing the tax | ||||||
| 10 | hereunder or effecting a change in the rate thereof shall | ||||||
| 11 | either (i) be adopted and a certified copy thereof filed with | ||||||
| 12 | the Department on or before the first day of April, whereupon | ||||||
| 13 | the Department shall proceed to administer and enforce this | ||||||
| 14 | Section as of the first day of July next following the adoption | ||||||
| 15 | and filing; or (ii) be adopted and a certified copy thereof | ||||||
| 16 | filed with the Department on or before the first day of | ||||||
| 17 | October, whereupon the Department shall proceed to administer | ||||||
| 18 | and enforce this Section as of the first day of January next | ||||||
| 19 | following the adoption and filing. | ||||||
| 20 | This Section shall be known and may be cited as the Home | ||||||
| 21 | Rule County Service Occupation Tax Law. | ||||||
| 22 | (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; | ||||||
| 23 | 101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
| ||||||
| 24 | (55 ILCS 5/5-1008.5) | ||||||
| 25 | Sec. 5-1008.5. Use and occupation taxes. | ||||||
| |||||||
| |||||||
| 1 | (a) The Rock Island County Board may adopt a resolution | ||||||
| 2 | that authorizes a referendum on the question of whether the | ||||||
| 3 | county shall be authorized to impose a retailers' occupation | ||||||
| 4 | tax, a service occupation tax, and a use tax at a rate of 1/4 | ||||||
| 5 | of 1% on behalf of the economic development activities of Rock | ||||||
| 6 | Island County and communities located within the county. The | ||||||
| 7 | county board shall certify the question to the proper election | ||||||
| 8 | authorities who shall submit the question to the voters of the | ||||||
| 9 | county at the next regularly scheduled election in accordance | ||||||
| 10 | with the general election law. The question shall be in | ||||||
| 11 | substantially the following form: | ||||||
| 12 | Shall Rock Island County be authorized to impose a | ||||||
| 13 | retailers' occupation tax, a service occupation tax, and a | ||||||
| 14 | use tax at the rate of 1/4 of 1% for the sole purpose of | ||||||
| 15 | economic development activities, including creation and | ||||||
| 16 | retention of job opportunities, support of affordable | ||||||
| 17 | housing opportunities, and enhancement of quality of life | ||||||
| 18 | improvements? | ||||||
| 19 | Votes shall be recorded as "yes" or "no". If a majority of | ||||||
| 20 | all votes cast on the proposition are in favor of the | ||||||
| 21 | proposition, the county is authorized to impose the tax. | ||||||
| 22 | (b) The county shall impose the retailers' occupation tax | ||||||
| 23 | upon all persons engaged in the business of selling tangible | ||||||
| 24 | personal property at retail in the county, at the rate | ||||||
| 25 | approved by referendum, on the gross receipts from the sales | ||||||
| 26 | made in the course of those businesses within the county. This | ||||||
| |||||||
| |||||||
| 1 | additional tax may not be imposed on tangible personal | ||||||
| 2 | property taxed at the 1% rate under the Retailers' Occupation | ||||||
| 3 | Tax Act. Beginning December 1, 2019, this tax is not imposed on | ||||||
| 4 | sales of aviation fuel unless the tax revenue is expended for | ||||||
| 5 | airport-related purposes. If the county does not have an | ||||||
| 6 | airport-related purpose to which it dedicates aviation fuel | ||||||
| 7 | tax revenue, then aviation fuel is excluded from the tax. The | ||||||
| 8 | county must comply with the certification requirements for | ||||||
| 9 | airport-related purposes under Section 2-22 of the Retailers' | ||||||
| 10 | Occupation Tax Act. For purposes of this Section, | ||||||
| 11 | "airport-related purposes" has the meaning ascribed in Section | ||||||
| 12 | 6z-20.2 of the State Finance Act. This exclusion for aviation | ||||||
| 13 | fuel only applies for so long as the revenue use requirements | ||||||
| 14 | of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the | ||||||
| 15 | county. The tax imposed under this Section and all civil | ||||||
| 16 | penalties that may be assessed as an incident of the tax shall | ||||||
| 17 | be collected and enforced by the Department of Revenue. The | ||||||
| 18 | Department has full power to administer and enforce this | ||||||
| 19 | Section; to collect all taxes and penalties so collected in | ||||||
| 20 | the manner provided in this Section; and to determine all | ||||||
| 21 | rights to credit memoranda arising on account of the erroneous | ||||||
| 22 | payment of tax or penalty under this Section. In the | ||||||
| 23 | administration of, and compliance with, this Section, the | ||||||
| 24 | Department and persons who are subject to this Section shall | ||||||
| 25 | (i) have the same rights, remedies, privileges, immunities, | ||||||
| 26 | powers and duties, (ii) be subject to the same conditions, | ||||||
| |||||||
| |||||||
| 1 | restrictions, limitations, penalties, exclusions, exemptions, | ||||||
| 2 | and definitions of terms, and (iii) employ the same modes of | ||||||
| 3 | procedure as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d, | ||||||
| 4 | 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 (in respect to | ||||||
| 5 | all provisions other than the State rate of tax), 2-15 through | ||||||
| 6 | 2-70, 2a, 2b, 2c, 3 (except as to the disposition of taxes and | ||||||
| 7 | penalties collected and provisions related to quarter monthly | ||||||
| 8 | payments, and except that the retailer's discount is not | ||||||
| 9 | allowed for taxes paid on aviation fuel that are subject to the | ||||||
| 10 | revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. | ||||||
| 11 | 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6, | ||||||
| 12 | 6a, 6b, 6c, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' | ||||||
| 13 | Occupation Tax Act and Section 3-7 of the Uniform Penalty and | ||||||
| 14 | Interest Act, as fully as if those provisions were set forth in | ||||||
| 15 | this subsection. | ||||||
| 16 | Persons subject to any tax imposed under this subsection | ||||||
| 17 | may reimburse themselves for their seller's tax liability by | ||||||
| 18 | separately stating the tax as an additional charge, which | ||||||
| 19 | charge may be stated in combination, in a single amount, with | ||||||
| 20 | State taxes that sellers are required to collect, in | ||||||
| 21 | accordance with bracket schedules prescribed by the | ||||||
| 22 | Department. | ||||||
| 23 | Whenever the Department determines that a refund should be | ||||||
| 24 | made under this subsection to a claimant instead of issuing a | ||||||
| 25 | credit memorandum, the Department shall notify the State | ||||||
| 26 | Comptroller, who shall cause the warrant to be drawn for the | ||||||
| |||||||
| |||||||
| 1 | amount specified, and to the person named, in the notification | ||||||
| 2 | from the Department. The refund shall be paid by the State | ||||||
| 3 | Treasurer out of the tax fund referenced under paragraph (g) | ||||||
| 4 | of this Section or the Local Government Aviation Trust Fund, | ||||||
| 5 | as appropriate. | ||||||
| 6 | If a tax is imposed under this subsection (b), a tax shall | ||||||
| 7 | also be imposed at the same rate under subsections (c) and (d) | ||||||
| 8 | of this Section. | ||||||
| 9 | For the purpose of determining whether a tax authorized | ||||||
| 10 | under this Section is applicable, a retail sale, by a producer | ||||||
| 11 | of coal or another mineral mined in Illinois, is a sale at | ||||||
| 12 | retail at the place where the coal or other mineral mined in | ||||||
| 13 | Illinois is extracted from the earth. This paragraph does not | ||||||
| 14 | apply to coal or another mineral when it is delivered or | ||||||
| 15 | shipped by the seller to the purchaser at a point outside | ||||||
| 16 | Illinois so that the sale is exempt under the federal | ||||||
| 17 | Constitution as a sale in interstate or foreign commerce. | ||||||
| 18 | Nothing in this Section shall be construed to authorize | ||||||
| 19 | the county to impose a tax upon the privilege of engaging in | ||||||
| 20 | any business that under the Constitution of the United States | ||||||
| 21 | may not be made the subject of taxation by this State. | ||||||
| 22 | (c) If a tax has been imposed under subsection (b), a | ||||||
| 23 | service occupation tax shall also be imposed at the same rate | ||||||
| 24 | upon all persons engaged, in the county, in the business of | ||||||
| 25 | making sales of service, who, as an incident to making those | ||||||
| 26 | sales of service, transfer tangible personal property within | ||||||
| |||||||
| |||||||
| 1 | the county as an incident to a sale of service. This additional | ||||||
| 2 | tax may not be imposed on tangible personal property taxed at | ||||||
| 3 | the 1% rate under the Service Occupation Tax Act. Beginning | ||||||
| 4 | December 1, 2019, this tax is not imposed on sales of aviation | ||||||
| 5 | fuel unless the tax revenue is expended for airport-related | ||||||
| 6 | purposes. If the county does not have an airport-related | ||||||
| 7 | purpose to which it dedicates aviation fuel tax revenue, then | ||||||
| 8 | aviation fuel is excluded from the tax. The county must comply | ||||||
| 9 | with the certification requirements for airport-related | ||||||
| 10 | purposes under Section 2-22 of the Retailers' Occupation Tax | ||||||
| 11 | Act. For purposes of this Section, "airport-related purposes" | ||||||
| 12 | has the meaning ascribed in Section 6z-20.2 of the State | ||||||
| 13 | Finance Act. This exclusion for aviation fuel only applies for | ||||||
| 14 | so long as the revenue use requirements of 49 U.S.C. 47107(b) | ||||||
| 15 | and 49 U.S.C. 47133 are binding on the county. The tax imposed | ||||||
| 16 | under this subsection and all civil penalties that may be | ||||||
| 17 | assessed as an incident of the tax shall be collected and | ||||||
| 18 | enforced by the Department of Revenue. The Department has full | ||||||
| 19 | power to administer and enforce this paragraph; to collect all | ||||||
| 20 | taxes and penalties due under this Section; to dispose of | ||||||
| 21 | taxes and penalties so collected in the manner provided in | ||||||
| 22 | this Section; and to determine all rights to credit memoranda | ||||||
| 23 | arising on account of the erroneous payment of tax or penalty | ||||||
| 24 | under this Section. In the administration of, and compliance | ||||||
| 25 | with this paragraph, the Department and persons who are | ||||||
| 26 | subject to this paragraph shall (i) have the same rights, | ||||||
| |||||||
| |||||||
| 1 | remedies, privileges, immunities, powers, and duties, (ii) be | ||||||
| 2 | subject to the same conditions, restrictions, limitations, | ||||||
| 3 | penalties, exclusions, exemptions, and definitions of terms, | ||||||
| 4 | and (iii) employ the same modes of procedure as are prescribed | ||||||
| 5 | in Sections 2 (except that the reference to State in the | ||||||
| 6 | definition of supplier maintaining a place of business in this | ||||||
| 7 | State shall mean the county), 2a, 2b, 3 through 3-55 (in | ||||||
| 8 | respect to all provisions other than the State rate of tax), 4 | ||||||
| 9 | (except that the reference to the State shall be to the | ||||||
| 10 | county), 5, 7, 8 (except that the jurisdiction to which the tax | ||||||
| 11 | shall be a debt to the extent indicated in that Section 8 shall | ||||||
| 12 | be the county), 9 (except as to the disposition of taxes and | ||||||
| 13 | penalties collected, and except that the returned merchandise | ||||||
| 14 | credit for this tax may not be taken against any State tax, and | ||||||
| 15 | except that the retailer's discount is not allowed for taxes | ||||||
| 16 | paid on aviation fuel that are subject to the revenue use | ||||||
| 17 | requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 11, | ||||||
| 18 | 12 (except the reference to Section 2b of the Retailers' | ||||||
| 19 | Occupation Tax Act), 13 (except that any reference to the | ||||||
| 20 | State shall mean the county), 15, 16, 17, 18, 19 and 20 of the | ||||||
| 21 | Service Occupation Tax Act and Section 3-7 of the Uniform | ||||||
| 22 | Penalty and Interest Act, as fully as if those provisions were | ||||||
| 23 | set forth in this subsection. | ||||||
| 24 | Persons subject to any tax imposed under the authority | ||||||
| 25 | granted in this subsection may reimburse themselves for their | ||||||
| 26 | serviceman's tax liability by separately stating the tax as an | ||||||
| |||||||
| |||||||
| 1 | additional charge, which charge may be stated in combination, | ||||||
| 2 | in a single amount, with State tax that servicemen are | ||||||
| 3 | authorized to collect under the Service Use Tax Act, in | ||||||
| 4 | accordance with bracket schedules prescribed by the | ||||||
| 5 | Department. | ||||||
| 6 | Whenever the Department determines that a refund should be | ||||||
| 7 | made under this subsection to a claimant instead of issuing a | ||||||
| 8 | credit memorandum, the Department shall notify the State | ||||||
| 9 | Comptroller, who shall cause the warrant to be drawn for the | ||||||
| 10 | amount specified, and to the person named, in the notification | ||||||
| 11 | from the Department. The refund shall be paid by the State | ||||||
| 12 | Treasurer out of the tax fund referenced under paragraph (g) | ||||||
| 13 | of this Section or the Local Government Aviation Trust Fund, | ||||||
| 14 | as appropriate. | ||||||
| 15 | Nothing in this paragraph shall be construed to authorize | ||||||
| 16 | the county to impose a tax upon the privilege of engaging in | ||||||
| 17 | any business that under the Constitution of the United States | ||||||
| 18 | may not be made the subject of taxation by the State. | ||||||
| 19 | (c-5) If, on January 1, 2025, a unit of local government | ||||||
| 20 | has in effect a tax under this Section, or if, after January 1, | ||||||
| 21 | 2025, a unit of local government imposes a tax under this | ||||||
| 22 | Section, then that tax applies to leases of tangible personal | ||||||
| 23 | property in effect, entered into, or renewed on or after that | ||||||
| 24 | date in the same manner as the tax under this Section and in | ||||||
| 25 | accordance with the changes made by this amendatory Act of the | ||||||
| 26 | 103rd General Assembly. | ||||||
| |||||||
| |||||||
| 1 | (d) If a tax has been imposed under subsection (b), a use | ||||||
| 2 | tax shall also be imposed at the same rate upon the privilege | ||||||
| 3 | of using, in the county, any item of tangible personal | ||||||
| 4 | property that is purchased outside the county at retail from a | ||||||
| 5 | retailer, and that is titled or registered at a location | ||||||
| 6 | within the county with an agency of this State's government. | ||||||
| 7 | "Selling price" is defined as in the Use Tax Act. The tax shall | ||||||
| 8 | be collected from persons whose Illinois address for titling | ||||||
| 9 | or registration purposes is given as being in the county. The | ||||||
| 10 | tax shall be collected by the Department of Revenue for the | ||||||
| 11 | county. The tax must be paid to the State, or an exemption | ||||||
| 12 | determination must be obtained from the Department of Revenue, | ||||||
| 13 | before the title or certificate of registration for the | ||||||
| 14 | property may be issued. The tax or proof of exemption may be | ||||||
| 15 | transmitted to the Department by way of the State agency with | ||||||
| 16 | which, or the State officer with whom, the tangible personal | ||||||
| 17 | property must be titled or registered if the Department and | ||||||
| 18 | the State agency or State officer determine that this | ||||||
| 19 | procedure will expedite the processing of applications for | ||||||
| 20 | title or registration. | ||||||
| 21 | The Department has full power to administer and enforce | ||||||
| 22 | this paragraph; to collect all taxes, penalties, and interest | ||||||
| 23 | due under this Section; to dispose of taxes, penalties, and | ||||||
| 24 | interest so collected in the manner provided in this Section; | ||||||
| 25 | and to determine all rights to credit memoranda or refunds | ||||||
| 26 | arising on account of the erroneous payment of tax, penalty, | ||||||
| |||||||
| |||||||
| 1 | or interest under this Section. In the administration of, and | ||||||
| 2 | compliance with, this subsection, the Department and persons | ||||||
| 3 | who are subject to this paragraph shall (i) have the same | ||||||
| 4 | rights, remedies, privileges, immunities, powers, and duties, | ||||||
| 5 | (ii) be subject to the same conditions, restrictions, | ||||||
| 6 | limitations, penalties, exclusions, exemptions, and | ||||||
| 7 | definitions of terms, and (iii) employ the same modes of | ||||||
| 8 | procedure as are prescribed in Sections 2 (except the | ||||||
| 9 | definition of "retailer maintaining a place of business in | ||||||
| 10 | this State"), 3, 3-5, 3-10, 3-45, 3-55, 3-65, 3-70, 3-85, 3a, | ||||||
| 11 | 4, 6, 7, 8 (except that the jurisdiction to which the tax shall | ||||||
| 12 | be a debt to the extent indicated in that Section 8 shall be | ||||||
| 13 | the county), 9 (except provisions relating to quarter monthly | ||||||
| 14 | payments), 10, 11, 12, 12a, 12b, 13, 14, 15, 19, 20, 21, and 22 | ||||||
| 15 | of the Use Tax Act and Section 3-7 of the Uniform Penalty and | ||||||
| 16 | Interest Act, that are not inconsistent with this paragraph, | ||||||
| 17 | as fully as if those provisions were set forth in this | ||||||
| 18 | subsection. | ||||||
| 19 | Whenever the Department determines that a refund should be | ||||||
| 20 | made under this subsection to a claimant instead of issuing a | ||||||
| 21 | credit memorandum, the Department shall notify the State | ||||||
| 22 | Comptroller, who shall cause the order to be drawn for the | ||||||
| 23 | amount specified, and to the person named, in the notification | ||||||
| 24 | from the Department. The refund shall be paid by the State | ||||||
| 25 | Treasurer out of the tax fund referenced under paragraph (g) | ||||||
| 26 | of this Section. | ||||||
| |||||||
| |||||||
| 1 | (e) A certificate of registration issued by the State | ||||||
| 2 | Department of Revenue to a retailer under the Retailers' | ||||||
| 3 | Occupation Tax Act or under the Service Occupation Tax Act | ||||||
| 4 | shall permit the registrant to engage in a business that is | ||||||
| 5 | taxed under the tax imposed under paragraphs (b), (c), or (d) | ||||||
| 6 | of this Section and no additional registration shall be | ||||||
| 7 | required. A certificate issued under the Use Tax Act or the | ||||||
| 8 | Service Use Tax Act shall be applicable with regard to any tax | ||||||
| 9 | imposed under paragraph (c) of this Section. | ||||||
| 10 | (f) The results of any election authorizing a proposition | ||||||
| 11 | to impose a tax under this Section or effecting a change in the | ||||||
| 12 | rate of tax shall be certified by the proper election | ||||||
| 13 | authorities and filed with the Illinois Department on or | ||||||
| 14 | before the first day of October. In addition, an ordinance | ||||||
| 15 | imposing, discontinuing, or effecting a change in the rate of | ||||||
| 16 | tax under this Section shall be adopted and a certified copy of | ||||||
| 17 | the ordinance filed with the Department on or before the first | ||||||
| 18 | day of October. After proper receipt of the certifications, | ||||||
| 19 | the Department shall proceed to administer and enforce this | ||||||
| 20 | Section as of the first day of January next following the | ||||||
| 21 | adoption and filing. | ||||||
| 22 | (g) Except as otherwise provided in paragraph (g-2), the | ||||||
| 23 | Department of Revenue shall, upon collecting any taxes and | ||||||
| 24 | penalties as provided in this Section, pay the taxes and | ||||||
| 25 | penalties over to the State Treasurer as trustee for the | ||||||
| 26 | county. The taxes and penalties shall be held in a trust fund | ||||||
| |||||||
| |||||||
| 1 | outside the State Treasury. On or before the 25th day of each | ||||||
| 2 | calendar month, the Department of Revenue shall prepare and | ||||||
| 3 | certify to the Comptroller of the State of Illinois the amount | ||||||
| 4 | to be paid to the county, which shall be the balance in the | ||||||
| 5 | fund, less any amount determined by the Department to be | ||||||
| 6 | necessary for the payment of refunds. Within 10 days after | ||||||
| 7 | receipt by the Comptroller of the certification of the amount | ||||||
| 8 | to be paid to the county, the Comptroller shall cause an order | ||||||
| 9 | to be drawn for payment for the amount in accordance with the | ||||||
| 10 | directions contained in the certification. Amounts received | ||||||
| 11 | from the tax imposed under this Section shall be used only for | ||||||
| 12 | the economic development activities of the county and | ||||||
| 13 | communities located within the county. | ||||||
| 14 | (g-2) Taxes and penalties collected on aviation fuel sold | ||||||
| 15 | on or after December 1, 2019, shall be immediately paid over by | ||||||
| 16 | the Department to the State Treasurer, ex officio, as trustee, | ||||||
| 17 | for deposit into the Local Government Aviation Trust Fund. The | ||||||
| 18 | Department shall only pay moneys into the Local Government | ||||||
| 19 | Aviation Trust Fund under this Section for so long as the | ||||||
| 20 | revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. | ||||||
| 21 | 47133 are binding on the county. | ||||||
| 22 | (h) When certifying the amount of a monthly disbursement | ||||||
| 23 | to the county under this Section, the Department shall | ||||||
| 24 | increase or decrease the amounts by an amount necessary to | ||||||
| 25 | offset any miscalculation of previous disbursements. The | ||||||
| 26 | offset amount shall be the amount erroneously disbursed within | ||||||
| |||||||
| |||||||
| 1 | the previous 6 months from the time a miscalculation is | ||||||
| 2 | discovered. | ||||||
| 3 | (i) This Section may be cited as the Rock Island County Use | ||||||
| 4 | and Occupation Tax Law. | ||||||
| 5 | (Source: P.A. 100-1171, eff. 1-4-19; 101-10, eff. 6-5-19; | ||||||
| 6 | 101-604, eff. 12-13-19.)
| ||||||
| 7 | Section 75-35. The Illinois Municipal Code is amended by | ||||||
| 8 | changing Sections 8-11-1, 8-11-1.3, 8-11-1.4, 8-11-1.6, | ||||||
| 9 | 8-11-1.7, and 11-74.3-6 as follows:
| ||||||
| 10 | (65 ILCS 5/8-11-1) (from Ch. 24, par. 8-11-1) | ||||||
| 11 | Sec. 8-11-1. Home Rule Municipal Retailers' Occupation Tax | ||||||
| 12 | Act. The corporate authorities of a home rule municipality may | ||||||
| 13 | impose a tax upon all persons engaged in the business of | ||||||
| 14 | selling tangible personal property, other than an item of | ||||||
| 15 | tangible personal property titled or registered with an agency | ||||||
| 16 | of this State's government, at retail in the municipality on | ||||||
| 17 | the gross receipts from these sales made in the course of such | ||||||
| 18 | business. If imposed, the tax shall only be imposed in 1/4% | ||||||
| 19 | increments. On and after September 1, 1991, this additional | ||||||
| 20 | tax may not be imposed on tangible personal property taxed at | ||||||
| 21 | the 1% rate under the Retailers' Occupation Tax Act (or at the | ||||||
| 22 | 0% rate imposed under this amendatory Act of the 102nd General | ||||||
| 23 | Assembly). Beginning December 1, 2019, this tax is not imposed | ||||||
| 24 | on sales of aviation fuel unless the tax revenue is expended | ||||||
| |||||||
| |||||||
| 1 | for airport-related purposes. If a municipality does not have | ||||||
| 2 | an airport-related purpose to which it dedicates aviation fuel | ||||||
| 3 | tax revenue, then aviation fuel is excluded from the tax. Each | ||||||
| 4 | municipality must comply with the certification requirements | ||||||
| 5 | for airport-related purposes under Section 2-22 of the | ||||||
| 6 | Retailers' Occupation Tax Act. For purposes of this Section, | ||||||
| 7 | "airport-related purposes" has the meaning ascribed in Section | ||||||
| 8 | 6z-20.2 of the State Finance Act. This exclusion for aviation | ||||||
| 9 | fuel only applies for so long as the revenue use requirements | ||||||
| 10 | of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the | ||||||
| 11 | municipality. The changes made to this Section by this | ||||||
| 12 | amendatory Act of the 101st General Assembly are a denial and | ||||||
| 13 | limitation of home rule powers and functions under subsection | ||||||
| 14 | (g) of Section 6 of Article VII of the Illinois Constitution. | ||||||
| 15 | The tax imposed by a home rule municipality under this Section | ||||||
| 16 | and all civil penalties that may be assessed as an incident of | ||||||
| 17 | the tax shall be collected and enforced by the State | ||||||
| 18 | Department of Revenue. The certificate of registration that is | ||||||
| 19 | issued by the Department to a retailer under the Retailers' | ||||||
| 20 | Occupation Tax Act shall permit the retailer to engage in a | ||||||
| 21 | business that is taxable under any ordinance or resolution | ||||||
| 22 | enacted pursuant to this Section without registering | ||||||
| 23 | separately with the Department under such ordinance or | ||||||
| 24 | resolution or under this Section. The Department shall have | ||||||
| 25 | full power to administer and enforce this Section; to collect | ||||||
| 26 | all taxes and penalties due hereunder; to dispose of taxes and | ||||||
| |||||||
| |||||||
| 1 | penalties so collected in the manner hereinafter provided; and | ||||||
| 2 | to determine all rights to credit memoranda arising on account | ||||||
| 3 | of the erroneous payment of tax or penalty hereunder. In the | ||||||
| 4 | administration of, and compliance with, this Section the | ||||||
| 5 | Department and persons who are subject to this Section shall | ||||||
| 6 | have the same rights, remedies, privileges, immunities, powers | ||||||
| 7 | and duties, and be subject to the same conditions, | ||||||
| 8 | restrictions, limitations, penalties and definitions of terms, | ||||||
| 9 | and employ the same modes of procedure, as are prescribed in | ||||||
| 10 | Sections 1, 1a, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2 through 2-65 | ||||||
| 11 | (in respect to all provisions therein other than the State | ||||||
| 12 | rate of tax), 2c, 3 (except as to the disposition of taxes and | ||||||
| 13 | penalties collected, and except that the retailer's discount | ||||||
| 14 | is not allowed for taxes paid on aviation fuel that are subject | ||||||
| 15 | to the revenue use requirements of 49 U.S.C. 47107(b) and 49 | ||||||
| 16 | U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, | ||||||
| 17 | 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the | ||||||
| 18 | Retailers' Occupation Tax Act and Section 3-7 of the Uniform | ||||||
| 19 | Penalty and Interest Act, as fully as if those provisions were | ||||||
| 20 | set forth herein. | ||||||
| 21 | No tax may be imposed by a home rule municipality under | ||||||
| 22 | this Section unless the municipality also imposes a tax at the | ||||||
| 23 | same rate under Section 8-11-5 of this Act. | ||||||
| 24 | If, on January 1, 2025, a unit of local government has in | ||||||
| 25 | effect a tax under this Section, or if, after January 1, 2025, | ||||||
| 26 | a unit of local government imposes a tax under this Section, | ||||||
| |||||||
| |||||||
| 1 | then that tax applies to leases of tangible personal property | ||||||
| 2 | in effect, entered into, or renewed on or after that date in | ||||||
| 3 | the same manner as the tax under this Section and in accordance | ||||||
| 4 | with the changes made by this amendatory Act of the 103rd | ||||||
| 5 | General Assembly. | ||||||
| 6 | Persons subject to any tax imposed under the authority | ||||||
| 7 | granted in this Section may reimburse themselves for their | ||||||
| 8 | seller's tax liability hereunder by separately stating that | ||||||
| 9 | tax as an additional charge, which charge may be stated in | ||||||
| 10 | combination, in a single amount, with State tax which sellers | ||||||
| 11 | are required to collect under the Use Tax Act, pursuant to such | ||||||
| 12 | bracket schedules as the Department may prescribe. | ||||||
| 13 | Whenever the Department determines that a refund should be | ||||||
| 14 | made under this Section to a claimant instead of issuing a | ||||||
| 15 | credit memorandum, the Department shall notify the State | ||||||
| 16 | Comptroller, who shall cause the order to be drawn for the | ||||||
| 17 | amount specified and to the person named in the notification | ||||||
| 18 | from the Department. The refund shall be paid by the State | ||||||
| 19 | Treasurer out of the home rule municipal retailers' occupation | ||||||
| 20 | tax fund or the Local Government Aviation Trust Fund, as | ||||||
| 21 | appropriate. | ||||||
| 22 | Except as otherwise provided in this paragraph, the | ||||||
| 23 | Department shall immediately pay over to the State Treasurer, | ||||||
| 24 | ex officio, as trustee, all taxes and penalties collected | ||||||
| 25 | hereunder for deposit into the Home Rule Municipal Retailers' | ||||||
| 26 | Occupation Tax Fund. Taxes and penalties collected on aviation | ||||||
| |||||||
| |||||||
| 1 | fuel sold on or after December 1, 2019, shall be immediately | ||||||
| 2 | paid over by the Department to the State Treasurer, ex | ||||||
| 3 | officio, as trustee, for deposit into the Local Government | ||||||
| 4 | Aviation Trust Fund. The Department shall only pay moneys into | ||||||
| 5 | the Local Government Aviation Trust Fund under this Section | ||||||
| 6 | for so long as the revenue use requirements of 49 U.S.C. | ||||||
| 7 | 47107(b) and 49 U.S.C. 47133 are binding on the State. | ||||||
| 8 | As soon as possible after the first day of each month, | ||||||
| 9 | beginning January 1, 2011, upon certification of the | ||||||
| 10 | Department of Revenue, the Comptroller shall order | ||||||
| 11 | transferred, and the Treasurer shall transfer, to the STAR | ||||||
| 12 | Bonds Revenue Fund the local sales tax increment, as defined | ||||||
| 13 | in the Innovation Development and Economy Act, collected under | ||||||
| 14 | this Section during the second preceding calendar month for | ||||||
| 15 | sales within a STAR bond district. | ||||||
| 16 | After the monthly transfer to the STAR Bonds Revenue Fund, | ||||||
| 17 | on or before the 25th day of each calendar month, the | ||||||
| 18 | Department shall prepare and certify to the Comptroller the | ||||||
| 19 | disbursement of stated sums of money to named municipalities, | ||||||
| 20 | the municipalities to be those from which retailers have paid | ||||||
| 21 | taxes or penalties hereunder to the Department during the | ||||||
| 22 | second preceding calendar month. The amount to be paid to each | ||||||
| 23 | municipality shall be the amount (not including credit | ||||||
| 24 | memoranda and not including taxes and penalties collected on | ||||||
| 25 | aviation fuel sold on or after December 1, 2019) collected | ||||||
| 26 | hereunder during the second preceding calendar month by the | ||||||
| |||||||
| |||||||
| 1 | Department plus an amount the Department determines is | ||||||
| 2 | necessary to offset any amounts that were erroneously paid to | ||||||
| 3 | a different taxing body, and not including an amount equal to | ||||||
| 4 | the amount of refunds made during the second preceding | ||||||
| 5 | calendar month by the Department on behalf of such | ||||||
| 6 | municipality, and not including any amount that the Department | ||||||
| 7 | determines is necessary to offset any amounts that were | ||||||
| 8 | payable to a different taxing body but were erroneously paid | ||||||
| 9 | to the municipality, and not including any amounts that are | ||||||
| 10 | transferred to the STAR Bonds Revenue Fund, less 1.5% of the | ||||||
| 11 | remainder, which the Department shall transfer into the Tax | ||||||
| 12 | Compliance and Administration Fund. The Department, at the | ||||||
| 13 | time of each monthly disbursement to the municipalities, shall | ||||||
| 14 | prepare and certify to the State Comptroller the amount to be | ||||||
| 15 | transferred into the Tax Compliance and Administration Fund | ||||||
| 16 | under this Section. Within 10 days after receipt by the | ||||||
| 17 | Comptroller of the disbursement certification to the | ||||||
| 18 | municipalities and the Tax Compliance and Administration Fund | ||||||
| 19 | provided for in this Section to be given to the Comptroller by | ||||||
| 20 | the Department, the Comptroller shall cause the orders to be | ||||||
| 21 | drawn for the respective amounts in accordance with the | ||||||
| 22 | directions contained in the certification. | ||||||
| 23 | In addition to the disbursement required by the preceding | ||||||
| 24 | paragraph and in order to mitigate delays caused by | ||||||
| 25 | distribution procedures, an allocation shall, if requested, be | ||||||
| 26 | made within 10 days after January 14, 1991, and in November of | ||||||
| |||||||
| |||||||
| 1 | 1991 and each year thereafter, to each municipality that | ||||||
| 2 | received more than $500,000 during the preceding fiscal year, | ||||||
| 3 | (July 1 through June 30) whether collected by the municipality | ||||||
| 4 | or disbursed by the Department as required by this Section. | ||||||
| 5 | Within 10 days after January 14, 1991, participating | ||||||
| 6 | municipalities shall notify the Department in writing of their | ||||||
| 7 | intent to participate. In addition, for the initial | ||||||
| 8 | distribution, participating municipalities shall certify to | ||||||
| 9 | the Department the amounts collected by the municipality for | ||||||
| 10 | each month under its home rule occupation and service | ||||||
| 11 | occupation tax during the period July 1, 1989 through June 30, | ||||||
| 12 | 1990. The allocation within 10 days after January 14, 1991, | ||||||
| 13 | shall be in an amount equal to the monthly average of these | ||||||
| 14 | amounts, excluding the 2 months of highest receipts. The | ||||||
| 15 | monthly average for the period of July 1, 1990 through June 30, | ||||||
| 16 | 1991 will be determined as follows: the amounts collected by | ||||||
| 17 | the municipality under its home rule occupation and service | ||||||
| 18 | occupation tax during the period of July 1, 1990 through | ||||||
| 19 | September 30, 1990, plus amounts collected by the Department | ||||||
| 20 | and paid to such municipality through June 30, 1991, excluding | ||||||
| 21 | the 2 months of highest receipts. The monthly average for each | ||||||
| 22 | subsequent period of July 1 through June 30 shall be an amount | ||||||
| 23 | equal to the monthly distribution made to each such | ||||||
| 24 | municipality under the preceding paragraph during this period, | ||||||
| 25 | excluding the 2 months of highest receipts. The distribution | ||||||
| 26 | made in November 1991 and each year thereafter under this | ||||||
| |||||||
| |||||||
| 1 | paragraph and the preceding paragraph shall be reduced by the | ||||||
| 2 | amount allocated and disbursed under this paragraph in the | ||||||
| 3 | preceding period of July 1 through June 30. The Department | ||||||
| 4 | shall prepare and certify to the Comptroller for disbursement | ||||||
| 5 | the allocations made in accordance with this paragraph. | ||||||
| 6 | For the purpose of determining the local governmental unit | ||||||
| 7 | whose tax is applicable, a retail sale by a producer of coal or | ||||||
| 8 | other mineral mined in Illinois is a sale at retail at the | ||||||
| 9 | place where the coal or other mineral mined in Illinois is | ||||||
| 10 | extracted from the earth. This paragraph does not apply to | ||||||
| 11 | coal or other mineral when it is delivered or shipped by the | ||||||
| 12 | seller to the purchaser at a point outside Illinois so that the | ||||||
| 13 | sale is exempt under the United States Constitution as a sale | ||||||
| 14 | in interstate or foreign commerce. | ||||||
| 15 | Nothing in this Section shall be construed to authorize a | ||||||
| 16 | municipality to impose a tax upon the privilege of engaging in | ||||||
| 17 | any business which under the Constitution of the United States | ||||||
| 18 | may not be made the subject of taxation by this State. | ||||||
| 19 | An ordinance or resolution imposing or discontinuing a tax | ||||||
| 20 | hereunder or effecting a change in the rate thereof shall be | ||||||
| 21 | adopted and a certified copy thereof filed with the Department | ||||||
| 22 | on or before the first day of June, whereupon the Department | ||||||
| 23 | shall proceed to administer and enforce this Section as of the | ||||||
| 24 | first day of September next following the adoption and filing. | ||||||
| 25 | Beginning January 1, 1992, an ordinance or resolution imposing | ||||||
| 26 | or discontinuing the tax hereunder or effecting a change in | ||||||
| |||||||
| |||||||
| 1 | the rate thereof shall be adopted and a certified copy thereof | ||||||
| 2 | filed with the Department on or before the first day of July, | ||||||
| 3 | whereupon the Department shall proceed to administer and | ||||||
| 4 | enforce this Section as of the first day of October next | ||||||
| 5 | following such adoption and filing. Beginning January 1, 1993, | ||||||
| 6 | an ordinance or resolution imposing or discontinuing the tax | ||||||
| 7 | hereunder or effecting a change in the rate thereof shall be | ||||||
| 8 | adopted and a certified copy thereof filed with the Department | ||||||
| 9 | on or before the first day of October, whereupon the | ||||||
| 10 | Department shall proceed to administer and enforce this | ||||||
| 11 | Section as of the first day of January next following the | ||||||
| 12 | adoption and filing. However, a municipality located in a | ||||||
| 13 | county with a population in excess of 3,000,000 that elected | ||||||
| 14 | to become a home rule unit at the general primary election in | ||||||
| 15 | 1994 may adopt an ordinance or resolution imposing the tax | ||||||
| 16 | under this Section and file a certified copy of the ordinance | ||||||
| 17 | or resolution with the Department on or before July 1, 1994. | ||||||
| 18 | The Department shall then proceed to administer and enforce | ||||||
| 19 | this Section as of October 1, 1994. Beginning April 1, 1998, an | ||||||
| 20 | ordinance or resolution imposing or discontinuing the tax | ||||||
| 21 | hereunder or effecting a change in the rate thereof shall | ||||||
| 22 | either (i) be adopted and a certified copy thereof filed with | ||||||
| 23 | the Department on or before the first day of April, whereupon | ||||||
| 24 | the Department shall proceed to administer and enforce this | ||||||
| 25 | Section as of the first day of July next following the adoption | ||||||
| 26 | and filing; or (ii) be adopted and a certified copy thereof | ||||||
| |||||||
| |||||||
| 1 | filed with the Department on or before the first day of | ||||||
| 2 | October, whereupon the Department shall proceed to administer | ||||||
| 3 | and enforce this Section as of the first day of January next | ||||||
| 4 | following the adoption and filing. | ||||||
| 5 | When certifying the amount of a monthly disbursement to a | ||||||
| 6 | municipality under this Section, the Department shall increase | ||||||
| 7 | or decrease the amount by an amount necessary to offset any | ||||||
| 8 | misallocation of previous disbursements. The offset amount | ||||||
| 9 | shall be the amount erroneously disbursed within the previous | ||||||
| 10 | 6 months from the time a misallocation is discovered. | ||||||
| 11 | Any unobligated balance remaining in the Municipal | ||||||
| 12 | Retailers' Occupation Tax Fund on December 31, 1989, which | ||||||
| 13 | fund was abolished by Public Act 85-1135, and all receipts of | ||||||
| 14 | municipal tax as a result of audits of liability periods prior | ||||||
| 15 | to January 1, 1990, shall be paid into the Local Government Tax | ||||||
| 16 | Fund for distribution as provided by this Section prior to the | ||||||
| 17 | enactment of Public Act 85-1135. All receipts of municipal tax | ||||||
| 18 | as a result of an assessment not arising from an audit, for | ||||||
| 19 | liability periods prior to January 1, 1990, shall be paid into | ||||||
| 20 | the Local Government Tax Fund for distribution before July 1, | ||||||
| 21 | 1990, as provided by this Section prior to the enactment of | ||||||
| 22 | Public Act 85-1135; and on and after July 1, 1990, all such | ||||||
| 23 | receipts shall be distributed as provided in Section 6z-18 of | ||||||
| 24 | the State Finance Act. | ||||||
| 25 | As used in this Section, "municipal" and "municipality" | ||||||
| 26 | means a city, village or incorporated town, including an | ||||||
| |||||||
| |||||||
| 1 | incorporated town that has superseded a civil township. | ||||||
| 2 | This Section shall be known and may be cited as the Home | ||||||
| 3 | Rule Municipal Retailers' Occupation Tax Act. | ||||||
| 4 | (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; | ||||||
| 5 | 101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
| ||||||
| 6 | (65 ILCS 5/8-11-1.3) (from Ch. 24, par. 8-11-1.3) | ||||||
| 7 | Sec. 8-11-1.3. Non-Home Rule Municipal Retailers' | ||||||
| 8 | Occupation Tax Act. The corporate authorities of a non-home | ||||||
| 9 | rule municipality may impose a tax upon all persons engaged in | ||||||
| 10 | the business of selling tangible personal property, other than | ||||||
| 11 | on an item of tangible personal property which is titled and | ||||||
| 12 | registered by an agency of this State's Government, at retail | ||||||
| 13 | in the municipality for expenditure on public infrastructure | ||||||
| 14 | or for property tax relief or both as defined in Section | ||||||
| 15 | 8-11-1.2 if approved by referendum as provided in Section | ||||||
| 16 | 8-11-1.1, of the gross receipts from such sales made in the | ||||||
| 17 | course of such business. If the tax is approved by referendum | ||||||
| 18 | on or after July 14, 2010 (the effective date of Public Act | ||||||
| 19 | 96-1057), the corporate authorities of a non-home rule | ||||||
| 20 | municipality may, until July 1, 2030, use the proceeds of the | ||||||
| 21 | tax for expenditure on municipal operations, in addition to or | ||||||
| 22 | in lieu of any expenditure on public infrastructure or for | ||||||
| 23 | property tax relief. The tax imposed may not be more than 1% | ||||||
| 24 | and may be imposed only in 1/4% increments. The tax may not be | ||||||
| 25 | imposed on tangible personal property taxed at the 1% rate | ||||||
| |||||||
| |||||||
| 1 | under the Retailers' Occupation Tax Act (or at the 0% rate | ||||||
| 2 | imposed under this amendatory Act of the 102nd General | ||||||
| 3 | Assembly). Beginning December 1, 2019, this tax is not imposed | ||||||
| 4 | on sales of aviation fuel unless the tax revenue is expended | ||||||
| 5 | for airport-related purposes. If a municipality does not have | ||||||
| 6 | an airport-related purpose to which it dedicates aviation fuel | ||||||
| 7 | tax revenue, then aviation fuel is excluded from the tax. Each | ||||||
| 8 | municipality must comply with the certification requirements | ||||||
| 9 | for airport-related purposes under Section 2-22 of the | ||||||
| 10 | Retailers' Occupation Tax Act. For purposes of this Section, | ||||||
| 11 | "airport-related purposes" has the meaning ascribed in Section | ||||||
| 12 | 6z-20.2 of the State Finance Act. This exclusion for aviation | ||||||
| 13 | fuel only applies for so long as the revenue use requirements | ||||||
| 14 | of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the | ||||||
| 15 | municipality. The tax imposed by a municipality pursuant to | ||||||
| 16 | this Section and all civil penalties that may be assessed as an | ||||||
| 17 | incident thereof shall be collected and enforced by the State | ||||||
| 18 | Department of Revenue. The certificate of registration which | ||||||
| 19 | is issued by the Department to a retailer under the Retailers' | ||||||
| 20 | Occupation Tax Act shall permit such retailer to engage in a | ||||||
| 21 | business which is taxable under any ordinance or resolution | ||||||
| 22 | enacted pursuant to this Section without registering | ||||||
| 23 | separately with the Department under such ordinance or | ||||||
| 24 | resolution or under this Section. The Department shall have | ||||||
| 25 | full power to administer and enforce this Section; to collect | ||||||
| 26 | all taxes and penalties due hereunder; to dispose of taxes and | ||||||
| |||||||
| |||||||
| 1 | penalties so collected in the manner hereinafter provided, and | ||||||
| 2 | to determine all rights to credit memoranda, arising on | ||||||
| 3 | account of the erroneous payment of tax or penalty hereunder. | ||||||
| 4 | In the administration of, and compliance with, this Section, | ||||||
| 5 | the Department and persons who are subject to this Section | ||||||
| 6 | shall have the same rights, remedies, privileges, immunities, | ||||||
| 7 | powers and duties, and be subject to the same conditions, | ||||||
| 8 | restrictions, limitations, penalties and definitions of terms, | ||||||
| 9 | and employ the same modes of procedure, as are prescribed in | ||||||
| 10 | Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 (in | ||||||
| 11 | respect to all provisions therein other than the State rate of | ||||||
| 12 | tax), 2c, 3 (except as to the disposition of taxes and | ||||||
| 13 | penalties collected, and except that the retailer's discount | ||||||
| 14 | is not allowed for taxes paid on aviation fuel that are subject | ||||||
| 15 | to the revenue use requirements of 49 U.S.C. 47107(b) and 49 | ||||||
| 16 | U.S.C. 47133), 4, 5, 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, | ||||||
| 17 | 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12 and 13 of the | ||||||
| 18 | Retailers' Occupation Tax Act and Section 3-7 of the Uniform | ||||||
| 19 | Penalty and Interest Act as fully as if those provisions were | ||||||
| 20 | set forth herein. | ||||||
| 21 | No municipality may impose a tax under this Section unless | ||||||
| 22 | the municipality also imposes a tax at the same rate under | ||||||
| 23 | Section 8-11-1.4 of this Code. | ||||||
| 24 | If, on January 1, 2025, a unit of local government has in | ||||||
| 25 | effect a tax under this Section, or if, after January 1, 2025, | ||||||
| 26 | a unit of local government imposes a tax under this Section, | ||||||
| |||||||
| |||||||
| 1 | then that tax applies to leases of tangible personal property | ||||||
| 2 | in effect, entered into, or renewed on or after that date in | ||||||
| 3 | the same manner as the tax under this Section and in accordance | ||||||
| 4 | with the changes made by this amendatory Act of the 103rd | ||||||
| 5 | General Assembly. | ||||||
| 6 | Persons subject to any tax imposed pursuant to the | ||||||
| 7 | authority granted in this Section may reimburse themselves for | ||||||
| 8 | their seller's tax liability hereunder by separately stating | ||||||
| 9 | such tax as an additional charge, which charge may be stated in | ||||||
| 10 | combination, in a single amount, with State tax which sellers | ||||||
| 11 | are required to collect under the Use Tax Act, pursuant to such | ||||||
| 12 | bracket schedules as the Department may prescribe. | ||||||
| 13 | Whenever the Department determines that a refund should be | ||||||
| 14 | made under this Section to a claimant instead of issuing a | ||||||
| 15 | credit memorandum, the Department shall notify the State | ||||||
| 16 | Comptroller, who shall cause the order to be drawn for the | ||||||
| 17 | amount specified, and to the person named, in such | ||||||
| 18 | notification from the Department. Such refund shall be paid by | ||||||
| 19 | the State Treasurer out of the non-home rule municipal | ||||||
| 20 | retailers' occupation tax fund or the Local Government | ||||||
| 21 | Aviation Trust Fund, as appropriate. | ||||||
| 22 | Except as otherwise provided, the Department shall | ||||||
| 23 | forthwith pay over to the State Treasurer, ex officio, as | ||||||
| 24 | trustee, all taxes and penalties collected hereunder for | ||||||
| 25 | deposit into the Non-Home Rule Municipal Retailers' Occupation | ||||||
| 26 | Tax Fund. Taxes and penalties collected on aviation fuel sold | ||||||
| |||||||
| |||||||
| 1 | on or after December 1, 2019, shall be immediately paid over by | ||||||
| 2 | the Department to the State Treasurer, ex officio, as trustee, | ||||||
| 3 | for deposit into the Local Government Aviation Trust Fund. The | ||||||
| 4 | Department shall only pay moneys into the Local Government | ||||||
| 5 | Aviation Trust Fund under this Section for so long as the | ||||||
| 6 | revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. | ||||||
| 7 | 47133 are binding on the municipality. | ||||||
| 8 | As soon as possible after the first day of each month, | ||||||
| 9 | beginning January 1, 2011, upon certification of the | ||||||
| 10 | Department of Revenue, the Comptroller shall order | ||||||
| 11 | transferred, and the Treasurer shall transfer, to the STAR | ||||||
| 12 | Bonds Revenue Fund the local sales tax increment, as defined | ||||||
| 13 | in the Innovation Development and Economy Act, collected under | ||||||
| 14 | this Section during the second preceding calendar month for | ||||||
| 15 | sales within a STAR bond district. | ||||||
| 16 | After the monthly transfer to the STAR Bonds Revenue Fund, | ||||||
| 17 | on or before the 25th day of each calendar month, the | ||||||
| 18 | Department shall prepare and certify to the Comptroller the | ||||||
| 19 | disbursement of stated sums of money to named municipalities, | ||||||
| 20 | the municipalities to be those from which retailers have paid | ||||||
| 21 | taxes or penalties hereunder to the Department during the | ||||||
| 22 | second preceding calendar month. The amount to be paid to each | ||||||
| 23 | municipality shall be the amount (not including credit | ||||||
| 24 | memoranda and not including taxes and penalties collected on | ||||||
| 25 | aviation fuel sold on or after December 1, 2019) collected | ||||||
| 26 | hereunder during the second preceding calendar month by the | ||||||
| |||||||
| |||||||
| 1 | Department plus an amount the Department determines is | ||||||
| 2 | necessary to offset any amounts which were erroneously paid to | ||||||
| 3 | a different taxing body, and not including an amount equal to | ||||||
| 4 | the amount of refunds made during the second preceding | ||||||
| 5 | calendar month by the Department on behalf of such | ||||||
| 6 | municipality, and not including any amount which the | ||||||
| 7 | Department determines is necessary to offset any amounts which | ||||||
| 8 | were payable to a different taxing body but were erroneously | ||||||
| 9 | paid to the municipality, and not including any amounts that | ||||||
| 10 | are transferred to the STAR Bonds Revenue Fund, less 1.5% of | ||||||
| 11 | the remainder, which the Department shall transfer into the | ||||||
| 12 | Tax Compliance and Administration Fund. The Department, at the | ||||||
| 13 | time of each monthly disbursement to the municipalities, shall | ||||||
| 14 | prepare and certify to the State Comptroller the amount to be | ||||||
| 15 | transferred into the Tax Compliance and Administration Fund | ||||||
| 16 | under this Section. Within 10 days after receipt, by the | ||||||
| 17 | Comptroller, of the disbursement certification to the | ||||||
| 18 | municipalities and the Tax Compliance and Administration Fund | ||||||
| 19 | provided for in this Section to be given to the Comptroller by | ||||||
| 20 | the Department, the Comptroller shall cause the orders to be | ||||||
| 21 | drawn for the respective amounts in accordance with the | ||||||
| 22 | directions contained in such certification. | ||||||
| 23 | For the purpose of determining the local governmental unit | ||||||
| 24 | whose tax is applicable, a retail sale, by a producer of coal | ||||||
| 25 | or other mineral mined in Illinois, is a sale at retail at the | ||||||
| 26 | place where the coal or other mineral mined in Illinois is | ||||||
| |||||||
| |||||||
| 1 | extracted from the earth. This paragraph does not apply to | ||||||
| 2 | coal or other mineral when it is delivered or shipped by the | ||||||
| 3 | seller to the purchaser at a point outside Illinois so that the | ||||||
| 4 | sale is exempt under the Federal Constitution as a sale in | ||||||
| 5 | interstate or foreign commerce. | ||||||
| 6 | Nothing in this Section shall be construed to authorize a | ||||||
| 7 | municipality to impose a tax upon the privilege of engaging in | ||||||
| 8 | any business which under the constitution of the United States | ||||||
| 9 | may not be made the subject of taxation by this State. | ||||||
| 10 | When certifying the amount of a monthly disbursement to a | ||||||
| 11 | municipality under this Section, the Department shall increase | ||||||
| 12 | or decrease such amount by an amount necessary to offset any | ||||||
| 13 | misallocation of previous disbursements. The offset amount | ||||||
| 14 | shall be the amount erroneously disbursed within the previous | ||||||
| 15 | 6 months from the time a misallocation is discovered. | ||||||
| 16 | The Department of Revenue shall implement Public Act | ||||||
| 17 | 91-649 so as to collect the tax on and after January 1, 2002. | ||||||
| 18 | As used in this Section, "municipal" and "municipality" | ||||||
| 19 | mean a city, village, or incorporated town, including an | ||||||
| 20 | incorporated town which has superseded a civil township. | ||||||
| 21 | This Section shall be known and may be cited as the | ||||||
| 22 | Non-Home Rule Municipal Retailers' Occupation Tax Act. | ||||||
| 23 | (Source: P.A. 101-10, eff. 6-5-19; 101-47, eff. 1-1-20; | ||||||
| 24 | 101-81, eff. 7-12-19; 101-604, eff. 12-13-19; 102-700, eff. | ||||||
| 25 | 4-19-22.)
| ||||||
| |||||||
| |||||||
| 1 | (65 ILCS 5/8-11-1.4) (from Ch. 24, par. 8-11-1.4) | ||||||
| 2 | Sec. 8-11-1.4. Non-Home Rule Municipal Service Occupation | ||||||
| 3 | Tax Act. The corporate authorities of a non-home rule | ||||||
| 4 | municipality may impose a tax upon all persons engaged, in | ||||||
| 5 | such municipality, in the business of making sales of service | ||||||
| 6 | for expenditure on public infrastructure or for property tax | ||||||
| 7 | relief or both as defined in Section 8-11-1.2 if approved by | ||||||
| 8 | referendum as provided in Section 8-11-1.1, of the selling | ||||||
| 9 | price of all tangible personal property transferred by such | ||||||
| 10 | servicemen either in the form of tangible personal property or | ||||||
| 11 | in the form of real estate as an incident to a sale of service. | ||||||
| 12 | If the tax is approved by referendum on or after July 14, 2010 | ||||||
| 13 | (the effective date of Public Act 96-1057), the corporate | ||||||
| 14 | authorities of a non-home rule municipality may, until | ||||||
| 15 | December 31, 2030, use the proceeds of the tax for expenditure | ||||||
| 16 | on municipal operations, in addition to or in lieu of any | ||||||
| 17 | expenditure on public infrastructure or for property tax | ||||||
| 18 | relief. The tax imposed may not be more than 1% and may be | ||||||
| 19 | imposed only in 1/4% increments. The tax may not be imposed on | ||||||
| 20 | tangible personal property taxed at the 1% rate under the | ||||||
| 21 | Service Occupation Tax Act (or at the 0% rate imposed under | ||||||
| 22 | this amendatory Act of the 102nd General Assembly). Beginning | ||||||
| 23 | December 1, 2019, this tax is not imposed on sales of aviation | ||||||
| 24 | fuel unless the tax revenue is expended for airport-related | ||||||
| 25 | purposes. If a municipality does not have an airport-related | ||||||
| 26 | purpose to which it dedicates aviation fuel tax revenue, then | ||||||
| |||||||
| |||||||
| 1 | aviation fuel is excluded from the tax. Each municipality must | ||||||
| 2 | comply with the certification requirements for airport-related | ||||||
| 3 | purposes under Section 2-22 of the Retailers' Occupation Tax | ||||||
| 4 | Act. For purposes of this Section, "airport-related purposes" | ||||||
| 5 | has the meaning ascribed in Section 6z-20.2 of the State | ||||||
| 6 | Finance Act. This exclusion for aviation fuel only applies for | ||||||
| 7 | so long as the revenue use requirements of 49 U.S.C. 47107(b) | ||||||
| 8 | and 49 U.S.C. 47133 are binding on the municipality. The tax | ||||||
| 9 | imposed by a municipality pursuant to this Section and all | ||||||
| 10 | civil penalties that may be assessed as an incident thereof | ||||||
| 11 | shall be collected and enforced by the State Department of | ||||||
| 12 | Revenue. The certificate of registration which is issued by | ||||||
| 13 | the Department to a retailer under the Retailers' Occupation | ||||||
| 14 | Tax Act or under the Service Occupation Tax Act shall permit | ||||||
| 15 | such registrant to engage in a business which is taxable under | ||||||
| 16 | any ordinance or resolution enacted pursuant to this Section | ||||||
| 17 | without registering separately with the Department under such | ||||||
| 18 | ordinance or resolution or under this Section. The Department | ||||||
| 19 | shall have full power to administer and enforce this Section; | ||||||
| 20 | to collect all taxes and penalties due hereunder; to dispose | ||||||
| 21 | of taxes and penalties so collected in the manner hereinafter | ||||||
| 22 | provided, and to determine all rights to credit memoranda | ||||||
| 23 | arising on account of the erroneous payment of tax or penalty | ||||||
| 24 | hereunder. In the administration of, and compliance with, this | ||||||
| 25 | Section the Department and persons who are subject to this | ||||||
| 26 | Section shall have the same rights, remedies, privileges, | ||||||
| |||||||
| |||||||
| 1 | immunities, powers and duties, and be subject to the same | ||||||
| 2 | conditions, restrictions, limitations, penalties and | ||||||
| 3 | definitions of terms, and employ the same modes of procedure, | ||||||
| 4 | as are prescribed in Sections 1a-1, 2, 2a, 3 through 3-50 (in | ||||||
| 5 | respect to all provisions therein other than the State rate of | ||||||
| 6 | tax), 4 (except that the reference to the State shall be to the | ||||||
| 7 | taxing municipality), 5, 7, 8 (except that the jurisdiction to | ||||||
| 8 | which the tax shall be a debt to the extent indicated in that | ||||||
| 9 | Section 8 shall be the taxing municipality), 9 (except as to | ||||||
| 10 | the disposition of taxes and penalties collected, and except | ||||||
| 11 | that the returned merchandise credit for this municipal tax | ||||||
| 12 | may not be taken against any State tax, and except that the | ||||||
| 13 | retailer's discount is not allowed for taxes paid on aviation | ||||||
| 14 | fuel that are subject to the revenue use requirements of 49 | ||||||
| 15 | U.S.C. 47107(b) and 49 U.S.C. 47133), 10, 11, 12 (except the | ||||||
| 16 | reference therein to Section 2b of the Retailers' Occupation | ||||||
| 17 | Tax Act), 13 (except that any reference to the State shall mean | ||||||
| 18 | the taxing municipality), the first paragraph of Section 15, | ||||||
| 19 | 16, 17, 18, 19 and 20 of the Service Occupation Tax Act and | ||||||
| 20 | Section 3-7 of the Uniform Penalty and Interest Act, as fully | ||||||
| 21 | as if those provisions were set forth herein. | ||||||
| 22 | No municipality may impose a tax under this Section unless | ||||||
| 23 | the municipality also imposes a tax at the same rate under | ||||||
| 24 | Section 8-11-1.3 of this Code. | ||||||
| 25 | If, on January 1, 2025, a unit of local government has in | ||||||
| 26 | effect a tax under this Section, or if, after January 1, 2025, | ||||||
| |||||||
| |||||||
| 1 | a unit of local government imposes a tax under this Section, | ||||||
| 2 | then that tax applies to leases of tangible personal property | ||||||
| 3 | in effect, entered into, or renewed on or after that date in | ||||||
| 4 | the same manner as the tax under this Section and in accordance | ||||||
| 5 | with the changes made by this amendatory Act of the 103rd | ||||||
| 6 | General Assembly. | ||||||
| 7 | Persons subject to any tax imposed pursuant to the | ||||||
| 8 | authority granted in this Section may reimburse themselves for | ||||||
| 9 | their serviceman's tax liability hereunder by separately | ||||||
| 10 | stating such tax as an additional charge, which charge may be | ||||||
| 11 | stated in combination, in a single amount, with State tax | ||||||
| 12 | which servicemen are authorized to collect under the Service | ||||||
| 13 | Use Tax Act, pursuant to such bracket schedules as the | ||||||
| 14 | Department may prescribe. | ||||||
| 15 | Whenever the Department determines that a refund should be | ||||||
| 16 | made under this Section to a claimant instead of issuing | ||||||
| 17 | credit memorandum, the Department shall notify the State | ||||||
| 18 | Comptroller, who shall cause the order to be drawn for the | ||||||
| 19 | amount specified, and to the person named, in such | ||||||
| 20 | notification from the Department. Such refund shall be paid by | ||||||
| 21 | the State Treasurer out of the municipal retailers' occupation | ||||||
| 22 | tax fund or the Local Government Aviation Trust Fund, as | ||||||
| 23 | appropriate. | ||||||
| 24 | Except as otherwise provided in this paragraph, the | ||||||
| 25 | Department shall forthwith pay over to the State Treasurer, ex | ||||||
| 26 | officio, as trustee, all taxes and penalties collected | ||||||
| |||||||
| |||||||
| 1 | hereunder for deposit into the municipal retailers' occupation | ||||||
| 2 | tax fund. Taxes and penalties collected on aviation fuel sold | ||||||
| 3 | on or after December 1, 2019, shall be immediately paid over by | ||||||
| 4 | the Department to the State Treasurer, ex officio, as trustee, | ||||||
| 5 | for deposit into the Local Government Aviation Trust Fund. The | ||||||
| 6 | Department shall only pay moneys into the Local Government | ||||||
| 7 | Aviation Trust Fund under this Section for so long as the | ||||||
| 8 | revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. | ||||||
| 9 | 47133 are binding on the municipality. | ||||||
| 10 | As soon as possible after the first day of each month, | ||||||
| 11 | beginning January 1, 2011, upon certification of the | ||||||
| 12 | Department of Revenue, the Comptroller shall order | ||||||
| 13 | transferred, and the Treasurer shall transfer, to the STAR | ||||||
| 14 | Bonds Revenue Fund the local sales tax increment, as defined | ||||||
| 15 | in the Innovation Development and Economy Act, collected under | ||||||
| 16 | this Section during the second preceding calendar month for | ||||||
| 17 | sales within a STAR bond district. | ||||||
| 18 | After the monthly transfer to the STAR Bonds Revenue Fund, | ||||||
| 19 | on or before the 25th day of each calendar month, the | ||||||
| 20 | Department shall prepare and certify to the Comptroller the | ||||||
| 21 | disbursement of stated sums of money to named municipalities, | ||||||
| 22 | the municipalities to be those from which suppliers and | ||||||
| 23 | servicemen have paid taxes or penalties hereunder to the | ||||||
| 24 | Department during the second preceding calendar month. The | ||||||
| 25 | amount to be paid to each municipality shall be the amount (not | ||||||
| 26 | including credit memoranda and not including taxes and | ||||||
| |||||||
| |||||||
| 1 | penalties collected on aviation fuel sold on or after December | ||||||
| 2 | 1, 2019) collected hereunder during the second preceding | ||||||
| 3 | calendar month by the Department, and not including an amount | ||||||
| 4 | equal to the amount of refunds made during the second | ||||||
| 5 | preceding calendar month by the Department on behalf of such | ||||||
| 6 | municipality, and not including any amounts that are | ||||||
| 7 | transferred to the STAR Bonds Revenue Fund, less 1.5% of the | ||||||
| 8 | remainder, which the Department shall transfer into the Tax | ||||||
| 9 | Compliance and Administration Fund. The Department, at the | ||||||
| 10 | time of each monthly disbursement to the municipalities, shall | ||||||
| 11 | prepare and certify to the State Comptroller the amount to be | ||||||
| 12 | transferred into the Tax Compliance and Administration Fund | ||||||
| 13 | under this Section. Within 10 days after receipt, by the | ||||||
| 14 | Comptroller, of the disbursement certification to the | ||||||
| 15 | municipalities, the General Revenue Fund, and the Tax | ||||||
| 16 | Compliance and Administration Fund provided for in this | ||||||
| 17 | Section to be given to the Comptroller by the Department, the | ||||||
| 18 | Comptroller shall cause the orders to be drawn for the | ||||||
| 19 | respective amounts in accordance with the directions contained | ||||||
| 20 | in such certification. | ||||||
| 21 | The Department of Revenue shall implement Public Act | ||||||
| 22 | 91-649 so as to collect the tax on and after January 1, 2002. | ||||||
| 23 | Nothing in this Section shall be construed to authorize a | ||||||
| 24 | municipality to impose a tax upon the privilege of engaging in | ||||||
| 25 | any business which under the constitution of the United States | ||||||
| 26 | may not be made the subject of taxation by this State. | ||||||
| |||||||
| |||||||
| 1 | As used in this Section, "municipal" or "municipality" | ||||||
| 2 | means or refers to a city, village or incorporated town, | ||||||
| 3 | including an incorporated town which has superseded a civil | ||||||
| 4 | township. | ||||||
| 5 | This Section shall be known and may be cited as the | ||||||
| 6 | "Non-Home Rule Municipal Service Occupation Tax Act". | ||||||
| 7 | (Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23.)
| ||||||
| 8 | (65 ILCS 5/8-11-1.6) | ||||||
| 9 | Sec. 8-11-1.6. Non-home rule municipal retailers' | ||||||
| 10 | occupation tax; municipalities between 20,000 and 25,000. The | ||||||
| 11 | corporate authorities of a non-home rule municipality with a | ||||||
| 12 | population of more than 20,000 but less than 25,000 that has, | ||||||
| 13 | prior to January 1, 1987, established a Redevelopment Project | ||||||
| 14 | Area that has been certified as a State Sales Tax Boundary and | ||||||
| 15 | has issued bonds or otherwise incurred indebtedness to pay for | ||||||
| 16 | costs in excess of $5,000,000, which is secured in part by a | ||||||
| 17 | tax increment allocation fund, in accordance with the | ||||||
| 18 | provisions of Division 11-74.4 of this Code may, by passage of | ||||||
| 19 | an ordinance, impose a tax upon all persons engaged in the | ||||||
| 20 | business of selling tangible personal property, other than on | ||||||
| 21 | an item of tangible personal property that is titled and | ||||||
| 22 | registered by an agency of this State's Government, at retail | ||||||
| 23 | in the municipality. This tax may not be imposed on tangible | ||||||
| 24 | personal property taxed at the 1% rate under the Retailers' | ||||||
| 25 | Occupation Tax Act (or at the 0% rate imposed under this | ||||||
| |||||||
| |||||||
| 1 | amendatory Act of the 102nd General Assembly). Beginning | ||||||
| 2 | December 1, 2019, this tax is not imposed on sales of aviation | ||||||
| 3 | fuel unless the tax revenue is expended for airport-related | ||||||
| 4 | purposes. If a municipality does not have an airport-related | ||||||
| 5 | purpose to which it dedicates aviation fuel tax revenue, then | ||||||
| 6 | aviation fuel is excluded from the tax. Each municipality must | ||||||
| 7 | comply with the certification requirements for airport-related | ||||||
| 8 | purposes under Section 2-22 of the Retailers' Occupation Tax | ||||||
| 9 | Act. For purposes of this Section, "airport-related purposes" | ||||||
| 10 | has the meaning ascribed in Section 6z-20.2 of the State | ||||||
| 11 | Finance Act. This exclusion for aviation fuel only applies for | ||||||
| 12 | so long as the revenue use requirements of 49 U.S.C. 47107(b) | ||||||
| 13 | and 49 U.S.C. 47133 are binding on the municipality. If | ||||||
| 14 | imposed, the tax shall only be imposed in .25% increments of | ||||||
| 15 | the gross receipts from such sales made in the course of | ||||||
| 16 | business. Any tax imposed by a municipality under this Section | ||||||
| 17 | and all civil penalties that may be assessed as an incident | ||||||
| 18 | thereof shall be collected and enforced by the State | ||||||
| 19 | Department of Revenue. An ordinance imposing a tax hereunder | ||||||
| 20 | or effecting a change in the rate thereof shall be adopted and | ||||||
| 21 | a certified copy thereof filed with the Department on or | ||||||
| 22 | before the first day of October, whereupon the Department | ||||||
| 23 | shall proceed to administer and enforce this Section as of the | ||||||
| 24 | first day of January next following such adoption and filing. | ||||||
| 25 | The certificate of registration that is issued by the | ||||||
| 26 | Department to a retailer under the Retailers' Occupation Tax | ||||||
| |||||||
| |||||||
| 1 | Act shall permit the retailer to engage in a business that is | ||||||
| 2 | taxable under any ordinance or resolution enacted under this | ||||||
| 3 | Section without registering separately with the Department | ||||||
| 4 | under the ordinance or resolution or under this Section. The | ||||||
| 5 | Department shall have full power to administer and enforce | ||||||
| 6 | this Section, to collect all taxes and penalties due | ||||||
| 7 | hereunder, to dispose of taxes and penalties so collected in | ||||||
| 8 | the manner hereinafter provided, and to determine all rights | ||||||
| 9 | to credit memoranda, arising on account of the erroneous | ||||||
| 10 | payment of tax or penalty hereunder. In the administration of, | ||||||
| 11 | and compliance with this Section, the Department and persons | ||||||
| 12 | who are subject to this Section shall have the same rights, | ||||||
| 13 | remedies, privileges, immunities, powers, and duties, and be | ||||||
| 14 | subject to the same conditions, restrictions, limitations, | ||||||
| 15 | penalties, and definitions of terms, and employ the same modes | ||||||
| 16 | of procedure, as are prescribed in Sections 1, 1a, 1a-1, 1d, | ||||||
| 17 | 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions | ||||||
| 18 | therein other than the State rate of tax), 2c, 3 (except as to | ||||||
| 19 | the disposition of taxes and penalties collected, and except | ||||||
| 20 | that the retailer's discount is not allowed for taxes paid on | ||||||
| 21 | aviation fuel that are subject to the revenue use requirements | ||||||
| 22 | of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c, | ||||||
| 23 | 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, | ||||||
| 24 | 10, 11, 12 and 13 of the Retailers' Occupation Tax Act and | ||||||
| 25 | Section 3-7 of the Uniform Penalty and Interest Act as fully as | ||||||
| 26 | if those provisions were set forth herein. | ||||||
| |||||||
| |||||||
| 1 | A tax may not be imposed by a municipality under this | ||||||
| 2 | Section unless the municipality also imposes a tax at the same | ||||||
| 3 | rate under Section 8-11-1.7 of this Act. | ||||||
| 4 | If, on January 1, 2025, a unit of local government has in | ||||||
| 5 | effect a tax under this Section, or if, after January 1, 2025, | ||||||
| 6 | a unit of local government imposes a tax under this Section, | ||||||
| 7 | then that tax applies to leases of tangible personal property | ||||||
| 8 | in effect, entered into, or renewed on or after that date in | ||||||
| 9 | the same manner as the tax under this Section and in accordance | ||||||
| 10 | with the changes made by this amendatory Act of the 103rd | ||||||
| 11 | General Assembly. | ||||||
| 12 | Persons subject to any tax imposed under the authority | ||||||
| 13 | granted in this Section may reimburse themselves for their | ||||||
| 14 | seller's tax liability hereunder by separately stating the tax | ||||||
| 15 | as an additional charge, which charge may be stated in | ||||||
| 16 | combination, in a single amount, with State tax which sellers | ||||||
| 17 | are required to collect under the Use Tax Act, pursuant to such | ||||||
| 18 | bracket schedules as the Department may prescribe. | ||||||
| 19 | Whenever the Department determines that a refund should be | ||||||
| 20 | made under this Section to a claimant, instead of issuing a | ||||||
| 21 | credit memorandum, the Department shall notify the State | ||||||
| 22 | Comptroller, who shall cause the order to be drawn for the | ||||||
| 23 | amount specified, and to the person named in the notification | ||||||
| 24 | from the Department. The refund shall be paid by the State | ||||||
| 25 | Treasurer out of the Non-Home Rule Municipal Retailers' | ||||||
| 26 | Occupation Tax Fund, which is hereby created or the Local | ||||||
| |||||||
| |||||||
| 1 | Government Aviation Trust Fund, as appropriate. | ||||||
| 2 | Except as otherwise provided in this paragraph, the | ||||||
| 3 | Department shall forthwith pay over to the State Treasurer, ex | ||||||
| 4 | officio, as trustee, all taxes and penalties collected | ||||||
| 5 | hereunder for deposit into the Non-Home Rule Municipal | ||||||
| 6 | Retailers' Occupation Tax Fund. Taxes and penalties collected | ||||||
| 7 | on aviation fuel sold on or after December 1, 2019, shall be | ||||||
| 8 | immediately paid over by the Department to the State | ||||||
| 9 | Treasurer, ex officio, as trustee, for deposit into the Local | ||||||
| 10 | Government Aviation Trust Fund. The Department shall only pay | ||||||
| 11 | moneys into the Local Government Aviation Trust Fund under | ||||||
| 12 | this Section for so long as the revenue use requirements of 49 | ||||||
| 13 | U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the | ||||||
| 14 | municipality. | ||||||
| 15 | As soon as possible after the first day of each month, | ||||||
| 16 | beginning January 1, 2011, upon certification of the | ||||||
| 17 | Department of Revenue, the Comptroller shall order | ||||||
| 18 | transferred, and the Treasurer shall transfer, to the STAR | ||||||
| 19 | Bonds Revenue Fund the local sales tax increment, as defined | ||||||
| 20 | in the Innovation Development and Economy Act, collected under | ||||||
| 21 | this Section during the second preceding calendar month for | ||||||
| 22 | sales within a STAR bond district. | ||||||
| 23 | After the monthly transfer to the STAR Bonds Revenue Fund, | ||||||
| 24 | on or before the 25th day of each calendar month, the | ||||||
| 25 | Department shall prepare and certify to the Comptroller the | ||||||
| 26 | disbursement of stated sums of money to named municipalities, | ||||||
| |||||||
| |||||||
| 1 | the municipalities to be those from which retailers have paid | ||||||
| 2 | taxes or penalties hereunder to the Department during the | ||||||
| 3 | second preceding calendar month. The amount to be paid to each | ||||||
| 4 | municipality shall be the amount (not including credit | ||||||
| 5 | memoranda and not including taxes and penalties collected on | ||||||
| 6 | aviation fuel sold on or after December 1, 2019) collected | ||||||
| 7 | hereunder during the second preceding calendar month by the | ||||||
| 8 | Department plus an amount the Department determines is | ||||||
| 9 | necessary to offset any amounts that were erroneously paid to | ||||||
| 10 | a different taxing body, and not including an amount equal to | ||||||
| 11 | the amount of refunds made during the second preceding | ||||||
| 12 | calendar month by the Department on behalf of the | ||||||
| 13 | municipality, and not including any amount that the Department | ||||||
| 14 | determines is necessary to offset any amounts that were | ||||||
| 15 | payable to a different taxing body but were erroneously paid | ||||||
| 16 | to the municipality, and not including any amounts that are | ||||||
| 17 | transferred to the STAR Bonds Revenue Fund, less 1.5% of the | ||||||
| 18 | remainder, which the Department shall transfer into the Tax | ||||||
| 19 | Compliance and Administration Fund. The Department, at the | ||||||
| 20 | time of each monthly disbursement to the municipalities, shall | ||||||
| 21 | prepare and certify to the State Comptroller the amount to be | ||||||
| 22 | transferred into the Tax Compliance and Administration Fund | ||||||
| 23 | under this Section. Within 10 days after receipt by the | ||||||
| 24 | Comptroller of the disbursement certification to the | ||||||
| 25 | municipalities and the Tax Compliance and Administration Fund | ||||||
| 26 | provided for in this Section to be given to the Comptroller by | ||||||
| |||||||
| |||||||
| 1 | the Department, the Comptroller shall cause the orders to be | ||||||
| 2 | drawn for the respective amounts in accordance with the | ||||||
| 3 | directions contained in the certification. | ||||||
| 4 | For the purpose of determining the local governmental unit | ||||||
| 5 | whose tax is applicable, a retail sale by a producer of coal or | ||||||
| 6 | other mineral mined in Illinois is a sale at retail at the | ||||||
| 7 | place where the coal or other mineral mined in Illinois is | ||||||
| 8 | extracted from the earth. This paragraph does not apply to | ||||||
| 9 | coal or other mineral when it is delivered or shipped by the | ||||||
| 10 | seller to the purchaser at a point outside Illinois so that the | ||||||
| 11 | sale is exempt under the federal Constitution as a sale in | ||||||
| 12 | interstate or foreign commerce. | ||||||
| 13 | Nothing in this Section shall be construed to authorize a | ||||||
| 14 | municipality to impose a tax upon the privilege of engaging in | ||||||
| 15 | any business which under the constitution of the United States | ||||||
| 16 | may not be made the subject of taxation by this State. | ||||||
| 17 | When certifying the amount of a monthly disbursement to a | ||||||
| 18 | municipality under this Section, the Department shall increase | ||||||
| 19 | or decrease the amount by an amount necessary to offset any | ||||||
| 20 | misallocation of previous disbursements. The offset amount | ||||||
| 21 | shall be the amount erroneously disbursed within the previous | ||||||
| 22 | 6 months from the time a misallocation is discovered. | ||||||
| 23 | As used in this Section, "municipal" and "municipality" | ||||||
| 24 | means a city, village, or incorporated town, including an | ||||||
| 25 | incorporated town that has superseded a civil township. | ||||||
| 26 | (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; | ||||||
| |||||||
| |||||||
| 1 | 101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
| ||||||
| 2 | (65 ILCS 5/8-11-1.7) | ||||||
| 3 | Sec. 8-11-1.7. Non-home rule municipal service occupation | ||||||
| 4 | tax; municipalities between 20,000 and 25,000. The corporate | ||||||
| 5 | authorities of a non-home rule municipality with a population | ||||||
| 6 | of more than 20,000 but less than 25,000 as determined by the | ||||||
| 7 | last preceding decennial census that has, prior to January 1, | ||||||
| 8 | 1987, established a Redevelopment Project Area that has been | ||||||
| 9 | certified as a State Sales Tax Boundary and has issued bonds or | ||||||
| 10 | otherwise incurred indebtedness to pay for costs in excess of | ||||||
| 11 | $5,000,000, which is secured in part by a tax increment | ||||||
| 12 | allocation fund, in accordance with the provisions of Division | ||||||
| 13 | 11-74.4 of this Code may, by passage of an ordinance, impose a | ||||||
| 14 | tax upon all persons engaged in the municipality in the | ||||||
| 15 | business of making sales of service. If imposed, the tax shall | ||||||
| 16 | only be imposed in .25% increments of the selling price of all | ||||||
| 17 | tangible personal property transferred by such servicemen | ||||||
| 18 | either in the form of tangible personal property or in the form | ||||||
| 19 | of real estate as an incident to a sale of service. This tax | ||||||
| 20 | may not be imposed on tangible personal property taxed at the | ||||||
| 21 | 1% rate under the Service Occupation Tax Act (or at the 0% rate | ||||||
| 22 | imposed under this amendatory Act of the 102nd General | ||||||
| 23 | Assembly). Beginning December 1, 2019, this tax is not imposed | ||||||
| 24 | on sales of aviation fuel unless the tax revenue is expended | ||||||
| 25 | for airport-related purposes. If a municipality does not have | ||||||
| |||||||
| |||||||
| 1 | an airport-related purpose to which it dedicates aviation fuel | ||||||
| 2 | tax revenue, then aviation fuel is excluded from the tax. Each | ||||||
| 3 | municipality must comply with the certification requirements | ||||||
| 4 | for airport-related purposes under Section 2-22 of the | ||||||
| 5 | Retailers' Occupation Tax Act. For purposes of this Section, | ||||||
| 6 | "airport-related purposes" has the meaning ascribed in Section | ||||||
| 7 | 6z-20.2 of the State Finance Act. This exclusion for aviation | ||||||
| 8 | fuel only applies for so long as the revenue use requirements | ||||||
| 9 | of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the | ||||||
| 10 | municipality. The tax imposed by a municipality under this | ||||||
| 11 | Section and all civil penalties that may be assessed as an | ||||||
| 12 | incident thereof shall be collected and enforced by the State | ||||||
| 13 | Department of Revenue. An ordinance imposing a tax hereunder | ||||||
| 14 | or effecting a change in the rate thereof shall be adopted and | ||||||
| 15 | a certified copy thereof filed with the Department on or | ||||||
| 16 | before the first day of October, whereupon the Department | ||||||
| 17 | shall proceed to administer and enforce this Section as of the | ||||||
| 18 | first day of January next following such adoption and filing. | ||||||
| 19 | The certificate of registration that is issued by the | ||||||
| 20 | Department to a retailer under the Retailers' Occupation Tax | ||||||
| 21 | Act or under the Service Occupation Tax Act shall permit the | ||||||
| 22 | registrant to engage in a business that is taxable under any | ||||||
| 23 | ordinance or resolution enacted under this Section without | ||||||
| 24 | registering separately with the Department under the ordinance | ||||||
| 25 | or resolution or under this Section. The Department shall have | ||||||
| 26 | full power to administer and enforce this Section, to collect | ||||||
| |||||||
| |||||||
| 1 | all taxes and penalties due hereunder, to dispose of taxes and | ||||||
| 2 | penalties so collected in a manner hereinafter provided, and | ||||||
| 3 | to determine all rights to credit memoranda arising on account | ||||||
| 4 | of the erroneous payment of tax or penalty hereunder. In the | ||||||
| 5 | administration of and compliance with this Section, the | ||||||
| 6 | Department and persons who are subject to this Section shall | ||||||
| 7 | have the same rights, remedies, privileges, immunities, | ||||||
| 8 | powers, and duties, and be subject to the same conditions, | ||||||
| 9 | restrictions, limitations, penalties and definitions of terms, | ||||||
| 10 | and employ the same modes of procedure, as are prescribed in | ||||||
| 11 | Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to all | ||||||
| 12 | provisions therein other than the State rate of tax), 4 | ||||||
| 13 | (except that the reference to the State shall be to the taxing | ||||||
| 14 | municipality), 5, 7, 8 (except that the jurisdiction to which | ||||||
| 15 | the tax shall be a debt to the extent indicated in that Section | ||||||
| 16 | 8 shall be the taxing municipality), 9 (except as to the | ||||||
| 17 | disposition of taxes and penalties collected, and except that | ||||||
| 18 | the returned merchandise credit for this municipal tax may not | ||||||
| 19 | be taken against any State tax, and except that the retailer's | ||||||
| 20 | discount is not allowed for taxes paid on aviation fuel that | ||||||
| 21 | are subject to the revenue use requirements of 49 U.S.C. | ||||||
| 22 | 47107(b) and 49 U.S.C. 47133), 10, 11, 12, (except the | ||||||
| 23 | reference therein to Section 2b of the Retailers' Occupation | ||||||
| 24 | Tax Act), 13 (except that any reference to the State shall mean | ||||||
| 25 | the taxing municipality), the first paragraph of Sections 15, | ||||||
| 26 | 16, 17, 18, 19, and 20 of the Service Occupation Tax Act and | ||||||
| |||||||
| |||||||
| 1 | Section 3-7 of the Uniform Penalty and Interest Act, as fully | ||||||
| 2 | as if those provisions were set forth herein. | ||||||
| 3 | A tax may not be imposed by a municipality under this | ||||||
| 4 | Section unless the municipality also imposes a tax at the same | ||||||
| 5 | rate under Section 8-11-1.6 of this Act. | ||||||
| 6 | If, on January 1, 2025, a unit of local government has in | ||||||
| 7 | effect a tax under this Section, or if, after January 1, 2025, | ||||||
| 8 | a unit of local government imposes a tax under this Section, | ||||||
| 9 | then that tax applies to leases of tangible personal property | ||||||
| 10 | in effect, entered into, or renewed on or after that date in | ||||||
| 11 | the same manner as the tax under this Section and in accordance | ||||||
| 12 | with the changes made by this amendatory Act of the 103rd | ||||||
| 13 | General Assembly. | ||||||
| 14 | Person subject to any tax imposed under the authority | ||||||
| 15 | granted in this Section may reimburse themselves for their | ||||||
| 16 | servicemen's tax liability hereunder by separately stating the | ||||||
| 17 | tax as an additional charge, which charge may be stated in | ||||||
| 18 | combination, in a single amount, with State tax that | ||||||
| 19 | servicemen are authorized to collect under the Service Use Tax | ||||||
| 20 | Act, under such bracket schedules as the Department may | ||||||
| 21 | prescribe. | ||||||
| 22 | Whenever the Department determines that a refund should be | ||||||
| 23 | made under this Section to a claimant instead of issuing | ||||||
| 24 | credit memorandum, the Department shall notify the State | ||||||
| 25 | Comptroller, who shall cause the order to be drawn for the | ||||||
| 26 | amount specified, and to the person named, in such | ||||||
| |||||||
| |||||||
| 1 | notification from the Department. The refund shall be paid by | ||||||
| 2 | the State Treasurer out of the Non-Home Rule Municipal | ||||||
| 3 | Retailers' Occupation Tax Fund or the Local Government | ||||||
| 4 | Aviation Trust Fund, as appropriate. | ||||||
| 5 | Except as otherwise provided in this paragraph, the | ||||||
| 6 | Department shall forthwith pay over to the State Treasurer, ex | ||||||
| 7 | officio, as trustee, all taxes and penalties collected | ||||||
| 8 | hereunder for deposit into the Non-Home Rule Municipal | ||||||
| 9 | Retailers' Occupation Tax Fund. Taxes and penalties collected | ||||||
| 10 | on aviation fuel sold on or after December 1, 2019, shall be | ||||||
| 11 | immediately paid over by the Department to the State | ||||||
| 12 | Treasurer, ex officio, as trustee, for deposit into the Local | ||||||
| 13 | Government Aviation Trust Fund. The Department shall only pay | ||||||
| 14 | moneys into the Local Government Aviation Trust Fund under | ||||||
| 15 | this Section for so long as the revenue use requirements of 49 | ||||||
| 16 | U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the | ||||||
| 17 | Municipality. | ||||||
| 18 | As soon as possible after the first day of each month, | ||||||
| 19 | beginning January 1, 2011, upon certification of the | ||||||
| 20 | Department of Revenue, the Comptroller shall order | ||||||
| 21 | transferred, and the Treasurer shall transfer, to the STAR | ||||||
| 22 | Bonds Revenue Fund the local sales tax increment, as defined | ||||||
| 23 | in the Innovation Development and Economy Act, collected under | ||||||
| 24 | this Section during the second preceding calendar month for | ||||||
| 25 | sales within a STAR bond district. | ||||||
| 26 | After the monthly transfer to the STAR Bonds Revenue Fund, | ||||||
| |||||||
| |||||||
| 1 | on or before the 25th day of each calendar month, the | ||||||
| 2 | Department shall prepare and certify to the Comptroller the | ||||||
| 3 | disbursement of stated sums of money to named municipalities, | ||||||
| 4 | the municipalities to be those from which suppliers and | ||||||
| 5 | servicemen have paid taxes or penalties hereunder to the | ||||||
| 6 | Department during the second preceding calendar month. The | ||||||
| 7 | amount to be paid to each municipality shall be the amount (not | ||||||
| 8 | including credit memoranda and not including taxes and | ||||||
| 9 | penalties collected on aviation fuel sold on or after December | ||||||
| 10 | 1, 2019) collected hereunder during the second preceding | ||||||
| 11 | calendar month by the Department, and not including an amount | ||||||
| 12 | equal to the amount of refunds made during the second | ||||||
| 13 | preceding calendar month by the Department on behalf of such | ||||||
| 14 | municipality, and not including any amounts that are | ||||||
| 15 | transferred to the STAR Bonds Revenue Fund, less 1.5% of the | ||||||
| 16 | remainder, which the Department shall transfer into the Tax | ||||||
| 17 | Compliance and Administration Fund. The Department, at the | ||||||
| 18 | time of each monthly disbursement to the municipalities, shall | ||||||
| 19 | prepare and certify to the State Comptroller the amount to be | ||||||
| 20 | transferred into the Tax Compliance and Administration Fund | ||||||
| 21 | under this Section. Within 10 days after receipt by the | ||||||
| 22 | Comptroller of the disbursement certification to the | ||||||
| 23 | municipalities, the Tax Compliance and Administration Fund, | ||||||
| 24 | and the General Revenue Fund, provided for in this Section to | ||||||
| 25 | be given to the Comptroller by the Department, the Comptroller | ||||||
| 26 | shall cause the orders to be drawn for the respective amounts | ||||||
| |||||||
| |||||||
| 1 | in accordance with the directions contained in the | ||||||
| 2 | certification. | ||||||
| 3 | When certifying the amount of a monthly disbursement to a | ||||||
| 4 | municipality under this Section, the Department shall increase | ||||||
| 5 | or decrease the amount by an amount necessary to offset any | ||||||
| 6 | misallocation of previous disbursements. The offset amount | ||||||
| 7 | shall be the amount erroneously disbursed within the previous | ||||||
| 8 | 6 months from the time a misallocation is discovered. | ||||||
| 9 | Nothing in this Section shall be construed to authorize a | ||||||
| 10 | municipality to impose a tax upon the privilege of engaging in | ||||||
| 11 | any business which under the constitution of the United States | ||||||
| 12 | may not be made the subject of taxation by this State. | ||||||
| 13 | (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; | ||||||
| 14 | 101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
| ||||||
| 15 | (65 ILCS 5/11-74.3-6) | ||||||
| 16 | Sec. 11-74.3-6. Business district revenue and obligations; | ||||||
| 17 | business district tax allocation fund. | ||||||
| 18 | (a) If the corporate authorities of a municipality have | ||||||
| 19 | approved a business district plan, have designated a business | ||||||
| 20 | district, and have elected to impose a tax by ordinance | ||||||
| 21 | pursuant to subsection (10) or (11) of Section 11-74.3-3, then | ||||||
| 22 | each year after the date of the approval of the ordinance but | ||||||
| 23 | terminating upon the date all business district project costs | ||||||
| 24 | and all obligations paying or reimbursing business district | ||||||
| 25 | project costs, if any, have been paid, but in no event later | ||||||
| |||||||
| |||||||
| 1 | than the dissolution date, all amounts generated by the | ||||||
| 2 | retailers' occupation tax and service occupation tax shall be | ||||||
| 3 | collected and the tax shall be enforced by the Department of | ||||||
| 4 | Revenue in the same manner as all retailers' occupation taxes | ||||||
| 5 | and service occupation taxes imposed in the municipality | ||||||
| 6 | imposing the tax and all amounts generated by the hotel | ||||||
| 7 | operators' occupation tax shall be collected and the tax shall | ||||||
| 8 | be enforced by the municipality in the same manner as all hotel | ||||||
| 9 | operators' occupation taxes imposed in the municipality | ||||||
| 10 | imposing the tax. The corporate authorities of the | ||||||
| 11 | municipality shall deposit the proceeds of the taxes imposed | ||||||
| 12 | under subsections (10) and (11) of Section 11-74.3-3 into a | ||||||
| 13 | special fund of the municipality called the "[Name of] | ||||||
| 14 | Business District Tax Allocation Fund" for the purpose of | ||||||
| 15 | paying or reimbursing business district project costs and | ||||||
| 16 | obligations incurred in the payment of those costs. | ||||||
| 17 | (b) The corporate authorities of a municipality that has | ||||||
| 18 | designated a business district under this Law may, by | ||||||
| 19 | ordinance, impose a Business District Retailers' Occupation | ||||||
| 20 | Tax upon all persons engaged in the business of selling | ||||||
| 21 | tangible personal property, other than an item of tangible | ||||||
| 22 | personal property titled or registered with an agency of this | ||||||
| 23 | State's government, at retail in the business district at a | ||||||
| 24 | rate not to exceed 1% of the gross receipts from the sales made | ||||||
| 25 | in the course of such business, to be imposed only in 0.25% | ||||||
| 26 | increments. The tax may not be imposed on tangible personal | ||||||
| |||||||
| |||||||
| 1 | property taxed at the rate of 1% under the Retailers' | ||||||
| 2 | Occupation Tax Act (or at the 0% rate imposed under this | ||||||
| 3 | amendatory Act of the 102nd General Assembly). Beginning | ||||||
| 4 | December 1, 2019 and through December 31, 2020, this tax is not | ||||||
| 5 | imposed on sales of aviation fuel unless the tax revenue is | ||||||
| 6 | expended for airport-related purposes. If the District does | ||||||
| 7 | not have an airport-related purpose to which it dedicates | ||||||
| 8 | aviation fuel tax revenue, then aviation fuel is excluded from | ||||||
| 9 | the tax. Each municipality must comply with the certification | ||||||
| 10 | requirements for airport-related purposes under Section 2-22 | ||||||
| 11 | of the Retailers' Occupation Tax Act. For purposes of this | ||||||
| 12 | Section, "airport-related purposes" has the meaning ascribed | ||||||
| 13 | in Section 6z-20.2 of the State Finance Act. Beginning January | ||||||
| 14 | 1, 2021, this tax is not imposed on sales of aviation fuel for | ||||||
| 15 | so long as the revenue use requirements of 49 U.S.C. 47107(b) | ||||||
| 16 | and 49 U.S.C. 47133 are binding on the District. | ||||||
| 17 | The tax imposed under this subsection and all civil | ||||||
| 18 | penalties that may be assessed as an incident thereof shall be | ||||||
| 19 | collected and enforced by the Department of Revenue. The | ||||||
| 20 | certificate of registration that is issued by the Department | ||||||
| 21 | to a retailer under the Retailers' Occupation Tax Act shall | ||||||
| 22 | permit the retailer to engage in a business that is taxable | ||||||
| 23 | under any ordinance or resolution enacted pursuant to this | ||||||
| 24 | subsection without registering separately with the Department | ||||||
| 25 | under such ordinance or resolution or under this subsection. | ||||||
| 26 | The Department of Revenue shall have full power to administer | ||||||
| |||||||
| |||||||
| 1 | and enforce this subsection; to collect all taxes and | ||||||
| 2 | penalties due under this subsection in the manner hereinafter | ||||||
| 3 | provided; and to determine all rights to credit memoranda | ||||||
| 4 | arising on account of the erroneous payment of tax or penalty | ||||||
| 5 | under this subsection. In the administration of, and | ||||||
| 6 | compliance with, this subsection, the Department and persons | ||||||
| 7 | who are subject to this subsection shall have the same rights, | ||||||
| 8 | remedies, privileges, immunities, powers and duties, and be | ||||||
| 9 | subject to the same conditions, restrictions, limitations, | ||||||
| 10 | penalties, exclusions, exemptions, and definitions of terms | ||||||
| 11 | and employ the same modes of procedure, as are prescribed in | ||||||
| 12 | Sections 1, 1a through 1o, 2 through 2-65 (in respect to all | ||||||
| 13 | provisions therein other than the State rate of tax), 2c | ||||||
| 14 | through 2h, 3 (except as to the disposition of taxes and | ||||||
| 15 | penalties collected, and except that the retailer's discount | ||||||
| 16 | is not allowed for taxes paid on aviation fuel that are subject | ||||||
| 17 | to the revenue use requirements of 49 U.S.C. 47107(b) and 49 | ||||||
| 18 | U.S.C. 47133), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6, | ||||||
| 19 | 6a, 6b, 6c, 7, 8, 9, 10, 11, 12, 13, and 14 of the Retailers' | ||||||
| 20 | Occupation Tax Act and all provisions of the Uniform Penalty | ||||||
| 21 | and Interest Act, as fully as if those provisions were set | ||||||
| 22 | forth herein. | ||||||
| 23 | Persons subject to any tax imposed under this subsection | ||||||
| 24 | may reimburse themselves for their seller's tax liability | ||||||
| 25 | under this subsection by separately stating the tax as an | ||||||
| 26 | additional charge, which charge may be stated in combination, | ||||||
| |||||||
| |||||||
| 1 | in a single amount, with State taxes that sellers are required | ||||||
| 2 | to collect under the Use Tax Act, in accordance with such | ||||||
| 3 | bracket schedules as the Department may prescribe. | ||||||
| 4 | Whenever the Department determines that a refund should be | ||||||
| 5 | made under this subsection to a claimant instead of issuing a | ||||||
| 6 | credit memorandum, the Department shall notify the State | ||||||
| 7 | Comptroller, who shall cause the order to be drawn for the | ||||||
| 8 | amount specified and to the person named in the notification | ||||||
| 9 | from the Department. The refund shall be paid by the State | ||||||
| 10 | Treasurer out of the business district retailers' occupation | ||||||
| 11 | tax fund or the Local Government Aviation Trust Fund, as | ||||||
| 12 | appropriate. | ||||||
| 13 | Except as otherwise provided in this paragraph, the | ||||||
| 14 | Department shall immediately pay over to the State Treasurer, | ||||||
| 15 | ex officio, as trustee, all taxes, penalties, and interest | ||||||
| 16 | collected under this subsection for deposit into the business | ||||||
| 17 | district retailers' occupation tax fund. Taxes and penalties | ||||||
| 18 | collected on aviation fuel sold on or after December 1, 2019, | ||||||
| 19 | shall be immediately paid over by the Department to the State | ||||||
| 20 | Treasurer, ex officio, as trustee, for deposit into the Local | ||||||
| 21 | Government Aviation Trust Fund. The Department shall only pay | ||||||
| 22 | moneys into the Local Government Aviation Trust Fund under | ||||||
| 23 | this Section for so long as the revenue use requirements of 49 | ||||||
| 24 | U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the | ||||||
| 25 | District. | ||||||
| 26 | As soon as possible after the first day of each month, | ||||||
| |||||||
| |||||||
| 1 | beginning January 1, 2011, upon certification of the | ||||||
| 2 | Department of Revenue, the Comptroller shall order | ||||||
| 3 | transferred, and the Treasurer shall transfer, to the STAR | ||||||
| 4 | Bonds Revenue Fund the local sales tax increment, as defined | ||||||
| 5 | in the Innovation Development and Economy Act, collected under | ||||||
| 6 | this subsection during the second preceding calendar month for | ||||||
| 7 | sales within a STAR bond district. | ||||||
| 8 | After the monthly transfer to the STAR Bonds Revenue Fund, | ||||||
| 9 | on or before the 25th day of each calendar month, the | ||||||
| 10 | Department shall prepare and certify to the Comptroller the | ||||||
| 11 | disbursement of stated sums of money to named municipalities | ||||||
| 12 | from the business district retailers' occupation tax fund, the | ||||||
| 13 | municipalities to be those from which retailers have paid | ||||||
| 14 | taxes or penalties under this subsection to the Department | ||||||
| 15 | during the second preceding calendar month. The amount to be | ||||||
| 16 | paid to each municipality shall be the amount (not including | ||||||
| 17 | credit memoranda and not including taxes and penalties | ||||||
| 18 | collected on aviation fuel sold on or after December 1, 2019) | ||||||
| 19 | collected under this subsection during the second preceding | ||||||
| 20 | calendar month by the Department plus an amount the Department | ||||||
| 21 | determines is necessary to offset any amounts that were | ||||||
| 22 | erroneously paid to a different taxing body, and not including | ||||||
| 23 | an amount equal to the amount of refunds made during the second | ||||||
| 24 | preceding calendar month by the Department, less 2% of that | ||||||
| 25 | amount (except the amount collected on aviation fuel sold on | ||||||
| 26 | or after December 1, 2019), which shall be deposited into the | ||||||
| |||||||
| |||||||
| 1 | Tax Compliance and Administration Fund and shall be used by | ||||||
| 2 | the Department, subject to appropriation, to cover the costs | ||||||
| 3 | of the Department in administering and enforcing the | ||||||
| 4 | provisions of this subsection, on behalf of such municipality, | ||||||
| 5 | and not including any amount that the Department determines is | ||||||
| 6 | necessary to offset any amounts that were payable to a | ||||||
| 7 | different taxing body but were erroneously paid to the | ||||||
| 8 | municipality, and not including any amounts that are | ||||||
| 9 | transferred to the STAR Bonds Revenue Fund. Within 10 days | ||||||
| 10 | after receipt by the Comptroller of the disbursement | ||||||
| 11 | certification to the municipalities provided for in this | ||||||
| 12 | subsection to be given to the Comptroller by the Department, | ||||||
| 13 | the Comptroller shall cause the orders to be drawn for the | ||||||
| 14 | respective amounts in accordance with the directions contained | ||||||
| 15 | in the certification. The proceeds of the tax paid to | ||||||
| 16 | municipalities under this subsection shall be deposited into | ||||||
| 17 | the Business District Tax Allocation Fund by the municipality. | ||||||
| 18 | An ordinance imposing or discontinuing the tax under this | ||||||
| 19 | subsection or effecting a change in the rate thereof shall | ||||||
| 20 | either (i) be adopted and a certified copy thereof filed with | ||||||
| 21 | the Department on or before the first day of April, whereupon | ||||||
| 22 | the Department, if all other requirements of this subsection | ||||||
| 23 | are met, shall proceed to administer and enforce this | ||||||
| 24 | subsection as of the first day of July next following the | ||||||
| 25 | adoption and filing; or (ii) be adopted and a certified copy | ||||||
| 26 | thereof filed with the Department on or before the first day of | ||||||
| |||||||
| |||||||
| 1 | October, whereupon, if all other requirements of this | ||||||
| 2 | subsection are met, the Department shall proceed to administer | ||||||
| 3 | and enforce this subsection as of the first day of January next | ||||||
| 4 | following the adoption and filing. | ||||||
| 5 | The Department of Revenue shall not administer or enforce | ||||||
| 6 | an ordinance imposing, discontinuing, or changing the rate of | ||||||
| 7 | the tax under this subsection, until the municipality also | ||||||
| 8 | provides, in the manner prescribed by the Department, the | ||||||
| 9 | boundaries of the business district and each address in the | ||||||
| 10 | business district in such a way that the Department can | ||||||
| 11 | determine by its address whether a business is located in the | ||||||
| 12 | business district. The municipality must provide this boundary | ||||||
| 13 | and address information to the Department on or before April 1 | ||||||
| 14 | for administration and enforcement of the tax under this | ||||||
| 15 | subsection by the Department beginning on the following July 1 | ||||||
| 16 | and on or before October 1 for administration and enforcement | ||||||
| 17 | of the tax under this subsection by the Department beginning | ||||||
| 18 | on the following January 1. The Department of Revenue shall | ||||||
| 19 | not administer or enforce any change made to the boundaries of | ||||||
| 20 | a business district or address change, addition, or deletion | ||||||
| 21 | until the municipality reports the boundary change or address | ||||||
| 22 | change, addition, or deletion to the Department in the manner | ||||||
| 23 | prescribed by the Department. The municipality must provide | ||||||
| 24 | this boundary change information or address change, addition, | ||||||
| 25 | or deletion to the Department on or before April 1 for | ||||||
| 26 | administration and enforcement by the Department of the change | ||||||
| |||||||
| |||||||
| 1 | beginning on the following July 1 and on or before October 1 | ||||||
| 2 | for administration and enforcement by the Department of the | ||||||
| 3 | change beginning on the following January 1. The retailers in | ||||||
| 4 | the business district shall be responsible for charging the | ||||||
| 5 | tax imposed under this subsection. If a retailer is | ||||||
| 6 | incorrectly included or excluded from the list of those | ||||||
| 7 | required to collect the tax under this subsection, both the | ||||||
| 8 | Department of Revenue and the retailer shall be held harmless | ||||||
| 9 | if they reasonably relied on information provided by the | ||||||
| 10 | municipality. | ||||||
| 11 | A municipality that imposes the tax under this subsection | ||||||
| 12 | must submit to the Department of Revenue any other information | ||||||
| 13 | as the Department may require for the administration and | ||||||
| 14 | enforcement of the tax. | ||||||
| 15 | When certifying the amount of a monthly disbursement to a | ||||||
| 16 | municipality under this subsection, the Department shall | ||||||
| 17 | increase or decrease the amount by an amount necessary to | ||||||
| 18 | offset any misallocation of previous disbursements. The offset | ||||||
| 19 | amount shall be the amount erroneously disbursed within the | ||||||
| 20 | previous 6 months from the time a misallocation is discovered. | ||||||
| 21 | Nothing in this subsection shall be construed to authorize | ||||||
| 22 | the municipality to impose a tax upon the privilege of | ||||||
| 23 | engaging in any business which under the Constitution of the | ||||||
| 24 | United States may not be made the subject of taxation by this | ||||||
| 25 | State. | ||||||
| 26 | If a tax is imposed under this subsection (b), a tax shall | ||||||
| |||||||
| |||||||
| 1 | also be imposed under subsection (c) of this Section. | ||||||
| 2 | (c) If a tax has been imposed under subsection (b), a | ||||||
| 3 | Business District Service Occupation Tax shall also be imposed | ||||||
| 4 | upon all persons engaged, in the business district, in the | ||||||
| 5 | business of making sales of service, who, as an incident to | ||||||
| 6 | making those sales of service, transfer tangible personal | ||||||
| 7 | property within the business district, either in the form of | ||||||
| 8 | tangible personal property or in the form of real estate as an | ||||||
| 9 | incident to a sale of service. The tax shall be imposed at the | ||||||
| 10 | same rate as the tax imposed in subsection (b) and shall not | ||||||
| 11 | exceed 1% of the selling price of tangible personal property | ||||||
| 12 | so transferred within the business district, to be imposed | ||||||
| 13 | only in 0.25% increments. The tax may not be imposed on | ||||||
| 14 | tangible personal property taxed at the 1% rate under the | ||||||
| 15 | Service Occupation Tax Act (or at the 0% rate imposed under | ||||||
| 16 | this amendatory Act of the 102nd General Assembly). Beginning | ||||||
| 17 | December 1, 2019, this tax is not imposed on sales of aviation | ||||||
| 18 | fuel unless the tax revenue is expended for airport-related | ||||||
| 19 | purposes. If the District does not have an airport-related | ||||||
| 20 | purpose to which it dedicates aviation fuel tax revenue, then | ||||||
| 21 | aviation fuel is excluded from the tax. Each municipality must | ||||||
| 22 | comply with the certification requirements for airport-related | ||||||
| 23 | purposes under Section 2-22 of the Retailers' Occupation Tax | ||||||
| 24 | Act. For purposes of this Act, "airport-related purposes" has | ||||||
| 25 | the meaning ascribed in Section 6z-20.2 of the State Finance | ||||||
| 26 | Act. Beginning January 1, 2021, this tax is not imposed on | ||||||
| |||||||
| |||||||
| 1 | sales of aviation fuel for so long as the revenue use | ||||||
| 2 | requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are | ||||||
| 3 | binding on the District. | ||||||
| 4 | The tax imposed under this subsection and all civil | ||||||
| 5 | penalties that may be assessed as an incident thereof shall be | ||||||
| 6 | collected and enforced by the Department of Revenue. The | ||||||
| 7 | certificate of registration which is issued by the Department | ||||||
| 8 | to a retailer under the Retailers' Occupation Tax Act or under | ||||||
| 9 | the Service Occupation Tax Act shall permit such registrant to | ||||||
| 10 | engage in a business which is taxable under any ordinance or | ||||||
| 11 | resolution enacted pursuant to this subsection without | ||||||
| 12 | registering separately with the Department under such | ||||||
| 13 | ordinance or resolution or under this subsection. The | ||||||
| 14 | Department of Revenue shall have full power to administer and | ||||||
| 15 | enforce this subsection; to collect all taxes and penalties | ||||||
| 16 | due under this subsection; to dispose of taxes and penalties | ||||||
| 17 | so collected in the manner hereinafter provided; and to | ||||||
| 18 | determine all rights to credit memoranda arising on account of | ||||||
| 19 | the erroneous payment of tax or penalty under this subsection. | ||||||
| 20 | In the administration of, and compliance with this subsection, | ||||||
| 21 | the Department and persons who are subject to this subsection | ||||||
| 22 | shall have the same rights, remedies, privileges, immunities, | ||||||
| 23 | powers and duties, and be subject to the same conditions, | ||||||
| 24 | restrictions, limitations, penalties, exclusions, exemptions, | ||||||
| 25 | and definitions of terms and employ the same modes of | ||||||
| 26 | procedure as are prescribed in Sections 2, 2a through 2d, 3 | ||||||
| |||||||
| |||||||
| 1 | through 3-50 (in respect to all provisions therein other than | ||||||
| 2 | the State rate of tax), 4 (except that the reference to the | ||||||
| 3 | State shall be to the business district), 5, 7, 8 (except that | ||||||
| 4 | the jurisdiction to which the tax shall be a debt to the extent | ||||||
| 5 | indicated in that Section 8 shall be the municipality), 9 | ||||||
| 6 | (except as to the disposition of taxes and penalties | ||||||
| 7 | collected, and except that the returned merchandise credit for | ||||||
| 8 | this tax may not be taken against any State tax, and except | ||||||
| 9 | that the retailer's discount is not allowed for taxes paid on | ||||||
| 10 | aviation fuel that are subject to the revenue use requirements | ||||||
| 11 | of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10, 11, 12 (except | ||||||
| 12 | the reference therein to Section 2b of the Retailers' | ||||||
| 13 | Occupation Tax Act), 13 (except that any reference to the | ||||||
| 14 | State shall mean the municipality), the first paragraph of | ||||||
| 15 | Section 15, and Sections 16, 17, 18, 19 and 20 of the Service | ||||||
| 16 | Occupation Tax Act and all provisions of the Uniform Penalty | ||||||
| 17 | and Interest Act, as fully as if those provisions were set | ||||||
| 18 | forth herein. | ||||||
| 19 | Persons subject to any tax imposed under the authority | ||||||
| 20 | granted in this subsection may reimburse themselves for their | ||||||
| 21 | serviceman's tax liability hereunder by separately stating the | ||||||
| 22 | tax as an additional charge, which charge may be stated in | ||||||
| 23 | combination, in a single amount, with State tax that | ||||||
| 24 | servicemen are authorized to collect under the Service Use Tax | ||||||
| 25 | Act, in accordance with such bracket schedules as the | ||||||
| 26 | Department may prescribe. | ||||||
| |||||||
| |||||||
| 1 | Whenever the Department determines that a refund should be | ||||||
| 2 | made under this subsection to a claimant instead of issuing | ||||||
| 3 | credit memorandum, the Department shall notify the State | ||||||
| 4 | Comptroller, who shall cause the order to be drawn for the | ||||||
| 5 | amount specified, and to the person named, in such | ||||||
| 6 | notification from the Department. Such refund shall be paid by | ||||||
| 7 | the State Treasurer out of the business district retailers' | ||||||
| 8 | occupation tax fund or the Local Government Aviation Trust | ||||||
| 9 | Fund, as appropriate. | ||||||
| 10 | Except as otherwise provided in this paragraph, the | ||||||
| 11 | Department shall forthwith pay over to the State Treasurer, | ||||||
| 12 | ex-officio, as trustee, all taxes, penalties, and interest | ||||||
| 13 | collected under this subsection for deposit into the business | ||||||
| 14 | district retailers' occupation tax fund. Taxes and penalties | ||||||
| 15 | collected on aviation fuel sold on or after December 1, 2019, | ||||||
| 16 | shall be immediately paid over by the Department to the State | ||||||
| 17 | Treasurer, ex officio, as trustee, for deposit into the Local | ||||||
| 18 | Government Aviation Trust Fund. The Department shall only pay | ||||||
| 19 | moneys into the Local Government Aviation Trust Fund under | ||||||
| 20 | this Section for so long as the revenue use requirements of 49 | ||||||
| 21 | U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the | ||||||
| 22 | District. | ||||||
| 23 | As soon as possible after the first day of each month, | ||||||
| 24 | beginning January 1, 2011, upon certification of the | ||||||
| 25 | Department of Revenue, the Comptroller shall order | ||||||
| 26 | transferred, and the Treasurer shall transfer, to the STAR | ||||||
| |||||||
| |||||||
| 1 | Bonds Revenue Fund the local sales tax increment, as defined | ||||||
| 2 | in the Innovation Development and Economy Act, collected under | ||||||
| 3 | this subsection during the second preceding calendar month for | ||||||
| 4 | sales within a STAR bond district. | ||||||
| 5 | After the monthly transfer to the STAR Bonds Revenue Fund, | ||||||
| 6 | on or before the 25th day of each calendar month, the | ||||||
| 7 | Department shall prepare and certify to the Comptroller the | ||||||
| 8 | disbursement of stated sums of money to named municipalities | ||||||
| 9 | from the business district retailers' occupation tax fund, the | ||||||
| 10 | municipalities to be those from which suppliers and servicemen | ||||||
| 11 | have paid taxes or penalties under this subsection to the | ||||||
| 12 | Department during the second preceding calendar month. The | ||||||
| 13 | amount to be paid to each municipality shall be the amount (not | ||||||
| 14 | including credit memoranda and not including taxes and | ||||||
| 15 | penalties collected on aviation fuel sold on or after December | ||||||
| 16 | 1, 2019) collected under this subsection during the second | ||||||
| 17 | preceding calendar month by the Department, less 2% of that | ||||||
| 18 | amount (except the amount collected on aviation fuel sold on | ||||||
| 19 | or after December 1, 2019), which shall be deposited into the | ||||||
| 20 | Tax Compliance and Administration Fund and shall be used by | ||||||
| 21 | the Department, subject to appropriation, to cover the costs | ||||||
| 22 | of the Department in administering and enforcing the | ||||||
| 23 | provisions of this subsection, and not including an amount | ||||||
| 24 | equal to the amount of refunds made during the second | ||||||
| 25 | preceding calendar month by the Department on behalf of such | ||||||
| 26 | municipality, and not including any amounts that are | ||||||
| |||||||
| |||||||
| 1 | transferred to the STAR Bonds Revenue Fund. Within 10 days | ||||||
| 2 | after receipt, by the Comptroller, of the disbursement | ||||||
| 3 | certification to the municipalities, provided for in this | ||||||
| 4 | subsection to be given to the Comptroller by the Department, | ||||||
| 5 | the Comptroller shall cause the orders to be drawn for the | ||||||
| 6 | respective amounts in accordance with the directions contained | ||||||
| 7 | in such certification. The proceeds of the tax paid to | ||||||
| 8 | municipalities under this subsection shall be deposited into | ||||||
| 9 | the Business District Tax Allocation Fund by the municipality. | ||||||
| 10 | An ordinance imposing or discontinuing the tax under this | ||||||
| 11 | subsection or effecting a change in the rate thereof shall | ||||||
| 12 | either (i) be adopted and a certified copy thereof filed with | ||||||
| 13 | the Department on or before the first day of April, whereupon | ||||||
| 14 | the Department, if all other requirements of this subsection | ||||||
| 15 | are met, shall proceed to administer and enforce this | ||||||
| 16 | subsection as of the first day of July next following the | ||||||
| 17 | adoption and filing; or (ii) be adopted and a certified copy | ||||||
| 18 | thereof filed with the Department on or before the first day of | ||||||
| 19 | October, whereupon, if all other conditions of this subsection | ||||||
| 20 | are met, the Department shall proceed to administer and | ||||||
| 21 | enforce this subsection as of the first day of January next | ||||||
| 22 | following the adoption and filing. | ||||||
| 23 | The Department of Revenue shall not administer or enforce | ||||||
| 24 | an ordinance imposing, discontinuing, or changing the rate of | ||||||
| 25 | the tax under this subsection, until the municipality also | ||||||
| 26 | provides, in the manner prescribed by the Department, the | ||||||
| |||||||
| |||||||
| 1 | boundaries of the business district in such a way that the | ||||||
| 2 | Department can determine by its address whether a business is | ||||||
| 3 | located in the business district. The municipality must | ||||||
| 4 | provide this boundary and address information to the | ||||||
| 5 | Department on or before April 1 for administration and | ||||||
| 6 | enforcement of the tax under this subsection by the Department | ||||||
| 7 | beginning on the following July 1 and on or before October 1 | ||||||
| 8 | for administration and enforcement of the tax under this | ||||||
| 9 | subsection by the Department beginning on the following | ||||||
| 10 | January 1. The Department of Revenue shall not administer or | ||||||
| 11 | enforce any change made to the boundaries of a business | ||||||
| 12 | district or address change, addition, or deletion until the | ||||||
| 13 | municipality reports the boundary change or address change, | ||||||
| 14 | addition, or deletion to the Department in the manner | ||||||
| 15 | prescribed by the Department. The municipality must provide | ||||||
| 16 | this boundary change information or address change, addition, | ||||||
| 17 | or deletion to the Department on or before April 1 for | ||||||
| 18 | administration and enforcement by the Department of the change | ||||||
| 19 | beginning on the following July 1 and on or before October 1 | ||||||
| 20 | for administration and enforcement by the Department of the | ||||||
| 21 | change beginning on the following January 1. The retailers in | ||||||
| 22 | the business district shall be responsible for charging the | ||||||
| 23 | tax imposed under this subsection. If a retailer is | ||||||
| 24 | incorrectly included or excluded from the list of those | ||||||
| 25 | required to collect the tax under this subsection, both the | ||||||
| 26 | Department of Revenue and the retailer shall be held harmless | ||||||
| |||||||
| |||||||
| 1 | if they reasonably relied on information provided by the | ||||||
| 2 | municipality. | ||||||
| 3 | A municipality that imposes the tax under this subsection | ||||||
| 4 | must submit to the Department of Revenue any other information | ||||||
| 5 | as the Department may require for the administration and | ||||||
| 6 | enforcement of the tax. | ||||||
| 7 | Nothing in this subsection shall be construed to authorize | ||||||
| 8 | the municipality to impose a tax upon the privilege of | ||||||
| 9 | engaging in any business which under the Constitution of the | ||||||
| 10 | United States may not be made the subject of taxation by the | ||||||
| 11 | State. | ||||||
| 12 | If a tax is imposed under this subsection (c), a tax shall | ||||||
| 13 | also be imposed under subsection (b) of this Section. | ||||||
| 14 | (c-5) If, on January 1, 2025, a unit of local government | ||||||
| 15 | has in effect a tax under this Section, or if, after January 1, | ||||||
| 16 | 2025, a unit of local government imposes a tax under this | ||||||
| 17 | Section, then that tax applies to leases of tangible personal | ||||||
| 18 | property in effect, entered into, or renewed on or after that | ||||||
| 19 | date in the same manner as the tax under this Section and in | ||||||
| 20 | accordance with the changes made by this amendatory Act of the | ||||||
| 21 | 103rd General Assembly. | ||||||
| 22 | (d) By ordinance, a municipality that has designated a | ||||||
| 23 | business district under this Law may impose an occupation tax | ||||||
| 24 | upon all persons engaged in the business district in the | ||||||
| 25 | business of renting, leasing, or letting rooms in a hotel, as | ||||||
| 26 | defined in the Hotel Operators' Occupation Tax Act, at a rate | ||||||
| |||||||
| |||||||
| 1 | not to exceed 1% of the gross rental receipts from the renting, | ||||||
| 2 | leasing, or letting of hotel rooms within the business | ||||||
| 3 | district, to be imposed only in 0.25% increments, excluding, | ||||||
| 4 | however, from gross rental receipts the proceeds of renting, | ||||||
| 5 | leasing, or letting to permanent residents of a hotel, as | ||||||
| 6 | defined in the Hotel Operators' Occupation Tax Act, and | ||||||
| 7 | proceeds from the tax imposed under subsection (c) of Section | ||||||
| 8 | 13 of the Metropolitan Pier and Exposition Authority Act. | ||||||
| 9 | The tax imposed by the municipality under this subsection | ||||||
| 10 | and all civil penalties that may be assessed as an incident to | ||||||
| 11 | that tax shall be collected and enforced by the municipality | ||||||
| 12 | imposing the tax. The municipality shall have full power to | ||||||
| 13 | administer and enforce this subsection, to collect all taxes | ||||||
| 14 | and penalties due under this subsection, to dispose of taxes | ||||||
| 15 | and penalties so collected in the manner provided in this | ||||||
| 16 | subsection, and to determine all rights to credit memoranda | ||||||
| 17 | arising on account of the erroneous payment of tax or penalty | ||||||
| 18 | under this subsection. In the administration of and compliance | ||||||
| 19 | with this subsection, the municipality and persons who are | ||||||
| 20 | subject to this subsection shall have the same rights, | ||||||
| 21 | remedies, privileges, immunities, powers, and duties, shall be | ||||||
| 22 | subject to the same conditions, restrictions, limitations, | ||||||
| 23 | penalties, and definitions of terms, and shall employ the same | ||||||
| 24 | modes of procedure as are employed with respect to a tax | ||||||
| 25 | adopted by the municipality under Section 8-3-14 of this Code. | ||||||
| 26 | Persons subject to any tax imposed under the authority | ||||||
| |||||||
| |||||||
| 1 | granted in this subsection may reimburse themselves for their | ||||||
| 2 | tax liability for that tax by separately stating that tax as an | ||||||
| 3 | additional charge, which charge may be stated in combination, | ||||||
| 4 | in a single amount, with State taxes imposed under the Hotel | ||||||
| 5 | Operators' Occupation Tax Act, and with any other tax. | ||||||
| 6 | Nothing in this subsection shall be construed to authorize | ||||||
| 7 | a municipality to impose a tax upon the privilege of engaging | ||||||
| 8 | in any business which under the Constitution of the United | ||||||
| 9 | States may not be made the subject of taxation by this State. | ||||||
| 10 | The proceeds of the tax imposed under this subsection | ||||||
| 11 | shall be deposited into the Business District Tax Allocation | ||||||
| 12 | Fund. | ||||||
| 13 | (e) Obligations secured by the Business District Tax | ||||||
| 14 | Allocation Fund may be issued to provide for the payment or | ||||||
| 15 | reimbursement of business district project costs. Those | ||||||
| 16 | obligations, when so issued, shall be retired in the manner | ||||||
| 17 | provided in the ordinance authorizing the issuance of those | ||||||
| 18 | obligations by the receipts of taxes imposed pursuant to | ||||||
| 19 | subsections (10) and (11) of Section 11-74.3-3 and by other | ||||||
| 20 | revenue designated or pledged by the municipality. A | ||||||
| 21 | municipality may in the ordinance pledge, for any period of | ||||||
| 22 | time up to and including the dissolution date, all or any part | ||||||
| 23 | of the funds in and to be deposited in the Business District | ||||||
| 24 | Tax Allocation Fund to the payment of business district | ||||||
| 25 | project costs and obligations. Whenever a municipality pledges | ||||||
| 26 | all of the funds to the credit of a business district tax | ||||||
| |||||||
| |||||||
| 1 | allocation fund to secure obligations issued or to be issued | ||||||
| 2 | to pay or reimburse business district project costs, the | ||||||
| 3 | municipality may specifically provide that funds remaining to | ||||||
| 4 | the credit of such business district tax allocation fund after | ||||||
| 5 | the payment of such obligations shall be accounted for | ||||||
| 6 | annually and shall be deemed to be "surplus" funds, and such | ||||||
| 7 | "surplus" funds shall be expended by the municipality for any | ||||||
| 8 | business district project cost as approved in the business | ||||||
| 9 | district plan. Whenever a municipality pledges less than all | ||||||
| 10 | of the monies to the credit of a business district tax | ||||||
| 11 | allocation fund to secure obligations issued or to be issued | ||||||
| 12 | to pay or reimburse business district project costs, the | ||||||
| 13 | municipality shall provide that monies to the credit of the | ||||||
| 14 | business district tax allocation fund and not subject to such | ||||||
| 15 | pledge or otherwise encumbered or required for payment of | ||||||
| 16 | contractual obligations for specific business district project | ||||||
| 17 | costs shall be calculated annually and shall be deemed to be | ||||||
| 18 | "surplus" funds, and such "surplus" funds shall be expended by | ||||||
| 19 | the municipality for any business district project cost as | ||||||
| 20 | approved in the business district plan. | ||||||
| 21 | No obligation issued pursuant to this Law and secured by a | ||||||
| 22 | pledge of all or any portion of any revenues received or to be | ||||||
| 23 | received by the municipality from the imposition of taxes | ||||||
| 24 | pursuant to subsection (10) of Section 11-74.3-3, shall be | ||||||
| 25 | deemed to constitute an economic incentive agreement under | ||||||
| 26 | Section 8-11-20, notwithstanding the fact that such pledge | ||||||
| |||||||
| |||||||
| 1 | provides for the sharing, rebate, or payment of retailers' | ||||||
| 2 | occupation taxes or service occupation taxes imposed pursuant | ||||||
| 3 | to subsection (10) of Section 11-74.3-3 and received or to be | ||||||
| 4 | received by the municipality from the development or | ||||||
| 5 | redevelopment of properties in the business district. | ||||||
| 6 | Without limiting the foregoing in this Section, the | ||||||
| 7 | municipality may further secure obligations secured by the | ||||||
| 8 | business district tax allocation fund with a pledge, for a | ||||||
| 9 | period not greater than the term of the obligations and in any | ||||||
| 10 | case not longer than the dissolution date, of any part or any | ||||||
| 11 | combination of the following: (i) net revenues of all or part | ||||||
| 12 | of any business district project; (ii) taxes levied or imposed | ||||||
| 13 | by the municipality on any or all property in the | ||||||
| 14 | municipality, including, specifically, taxes levied or imposed | ||||||
| 15 | by the municipality in a special service area pursuant to the | ||||||
| 16 | Special Service Area Tax Law; (iii) the full faith and credit | ||||||
| 17 | of the municipality; (iv) a mortgage on part or all of the | ||||||
| 18 | business district project; or (v) any other taxes or | ||||||
| 19 | anticipated receipts that the municipality may lawfully | ||||||
| 20 | pledge. | ||||||
| 21 | Such obligations may be issued in one or more series, bear | ||||||
| 22 | such date or dates, become due at such time or times as therein | ||||||
| 23 | provided, but in any case not later than (i) 20 years after the | ||||||
| 24 | date of issue or (ii) the dissolution date, whichever is | ||||||
| 25 | earlier, bear interest payable at such intervals and at such | ||||||
| 26 | rate or rates as set forth therein, except as may be limited by | ||||||
| |||||||
| |||||||
| 1 | applicable law, which rate or rates may be fixed or variable, | ||||||
| 2 | be in such denominations, be in such form, either coupon, | ||||||
| 3 | registered, or book-entry, carry such conversion, registration | ||||||
| 4 | and exchange privileges, be subject to defeasance upon such | ||||||
| 5 | terms, have such rank or priority, be executed in such manner, | ||||||
| 6 | be payable in such medium or payment at such place or places | ||||||
| 7 | within or without the State, make provision for a corporate | ||||||
| 8 | trustee within or without the State with respect to such | ||||||
| 9 | obligations, prescribe the rights, powers, and duties thereof | ||||||
| 10 | to be exercised for the benefit of the municipality and the | ||||||
| 11 | benefit of the owners of such obligations, provide for the | ||||||
| 12 | holding in trust, investment, and use of moneys, funds, and | ||||||
| 13 | accounts held under an ordinance, provide for assignment of | ||||||
| 14 | and direct payment of the moneys to pay such obligations or to | ||||||
| 15 | be deposited into such funds or accounts directly to such | ||||||
| 16 | trustee, be subject to such terms of redemption with or | ||||||
| 17 | without premium, and be sold at such price, all as the | ||||||
| 18 | corporate authorities shall determine. No referendum approval | ||||||
| 19 | of the electors shall be required as a condition to the | ||||||
| 20 | issuance of obligations pursuant to this Law except as | ||||||
| 21 | provided in this Section. | ||||||
| 22 | In the event the municipality authorizes the issuance of | ||||||
| 23 | obligations pursuant to the authority of this Law secured by | ||||||
| 24 | the full faith and credit of the municipality, or pledges ad | ||||||
| 25 | valorem taxes pursuant to this subsection, which obligations | ||||||
| 26 | are other than obligations which may be issued under home rule | ||||||
| |||||||
| |||||||
| 1 | powers provided by Section 6 of Article VII of the Illinois | ||||||
| 2 | Constitution or which ad valorem taxes are other than ad | ||||||
| 3 | valorem taxes which may be pledged under home rule powers | ||||||
| 4 | provided by Section 6 of Article VII of the Illinois | ||||||
| 5 | Constitution or which are levied in a special service area | ||||||
| 6 | pursuant to the Special Service Area Tax Law, the ordinance | ||||||
| 7 | authorizing the issuance of those obligations or pledging | ||||||
| 8 | those taxes shall be published within 10 days after the | ||||||
| 9 | ordinance has been adopted, in a newspaper having a general | ||||||
| 10 | circulation within the municipality. The publication of the | ||||||
| 11 | ordinance shall be accompanied by a notice of (i) the specific | ||||||
| 12 | number of voters required to sign a petition requesting the | ||||||
| 13 | question of the issuance of the obligations or pledging such | ||||||
| 14 | ad valorem taxes to be submitted to the electors; (ii) the time | ||||||
| 15 | within which the petition must be filed; and (iii) the date of | ||||||
| 16 | the prospective referendum. The municipal clerk shall provide | ||||||
| 17 | a petition form to any individual requesting one. | ||||||
| 18 | If no petition is filed with the municipal clerk, as | ||||||
| 19 | hereinafter provided in this Section, within 21 days after the | ||||||
| 20 | publication of the ordinance, the ordinance shall be in | ||||||
| 21 | effect. However, if within that 21-day period a petition is | ||||||
| 22 | filed with the municipal clerk, signed by electors numbering | ||||||
| 23 | not less than 15% of the number of electors voting for the | ||||||
| 24 | mayor or president at the last general municipal election, | ||||||
| 25 | asking that the question of issuing obligations using full | ||||||
| 26 | faith and credit of the municipality as security for the cost | ||||||
| |||||||
| |||||||
| 1 | of paying or reimbursing business district project costs, or | ||||||
| 2 | of pledging such ad valorem taxes for the payment of those | ||||||
| 3 | obligations, or both, be submitted to the electors of the | ||||||
| 4 | municipality, the municipality shall not be authorized to | ||||||
| 5 | issue obligations of the municipality using the full faith and | ||||||
| 6 | credit of the municipality as security or pledging such ad | ||||||
| 7 | valorem taxes for the payment of those obligations, or both, | ||||||
| 8 | until the proposition has been submitted to and approved by a | ||||||
| 9 | majority of the voters voting on the proposition at a | ||||||
| 10 | regularly scheduled election. The municipality shall certify | ||||||
| 11 | the proposition to the proper election authorities for | ||||||
| 12 | submission in accordance with the general election law. | ||||||
| 13 | The ordinance authorizing the obligations may provide that | ||||||
| 14 | the obligations shall contain a recital that they are issued | ||||||
| 15 | pursuant to this Law, which recital shall be conclusive | ||||||
| 16 | evidence of their validity and of the regularity of their | ||||||
| 17 | issuance. | ||||||
| 18 | In the event the municipality authorizes issuance of | ||||||
| 19 | obligations pursuant to this Law secured by the full faith and | ||||||
| 20 | credit of the municipality, the ordinance authorizing the | ||||||
| 21 | obligations may provide for the levy and collection of a | ||||||
| 22 | direct annual tax upon all taxable property within the | ||||||
| 23 | municipality sufficient to pay the principal thereof and | ||||||
| 24 | interest thereon as it matures, which levy may be in addition | ||||||
| 25 | to and exclusive of the maximum of all other taxes authorized | ||||||
| 26 | to be levied by the municipality, which levy, however, shall | ||||||
| |||||||
| |||||||
| 1 | be abated to the extent that monies from other sources are | ||||||
| 2 | available for payment of the obligations and the municipality | ||||||
| 3 | certifies the amount of those monies available to the county | ||||||
| 4 | clerk. | ||||||
| 5 | A certified copy of the ordinance shall be filed with the | ||||||
| 6 | county clerk of each county in which any portion of the | ||||||
| 7 | municipality is situated, and shall constitute the authority | ||||||
| 8 | for the extension and collection of the taxes to be deposited | ||||||
| 9 | in the business district tax allocation fund. | ||||||
| 10 | A municipality may also issue its obligations to refund, | ||||||
| 11 | in whole or in part, obligations theretofore issued by the | ||||||
| 12 | municipality under the authority of this Law, whether at or | ||||||
| 13 | prior to maturity. However, the last maturity of the refunding | ||||||
| 14 | obligations shall not be expressed to mature later than the | ||||||
| 15 | dissolution date. | ||||||
| 16 | In the event a municipality issues obligations under home | ||||||
| 17 | rule powers or other legislative authority, the proceeds of | ||||||
| 18 | which are pledged to pay or reimburse business district | ||||||
| 19 | project costs, the municipality may, if it has followed the | ||||||
| 20 | procedures in conformance with this Law, retire those | ||||||
| 21 | obligations from funds in the business district tax allocation | ||||||
| 22 | fund in amounts and in such manner as if those obligations had | ||||||
| 23 | been issued pursuant to the provisions of this Law. | ||||||
| 24 | No obligations issued pursuant to this Law shall be | ||||||
| 25 | regarded as indebtedness of the municipality issuing those | ||||||
| 26 | obligations or any other taxing district for the purpose of | ||||||
| |||||||
| |||||||
| 1 | any limitation imposed by law. | ||||||
| 2 | Obligations issued pursuant to this Law shall not be | ||||||
| 3 | subject to the provisions of the Bond Authorization Act. | ||||||
| 4 | (f) When business district project costs, including, | ||||||
| 5 | without limitation, all obligations paying or reimbursing | ||||||
| 6 | business district project costs have been paid, any surplus | ||||||
| 7 | funds then remaining in the Business District Tax Allocation | ||||||
| 8 | Fund shall be distributed to the municipal treasurer for | ||||||
| 9 | deposit into the general corporate fund of the municipality. | ||||||
| 10 | Upon payment of all business district project costs and | ||||||
| 11 | retirement of all obligations paying or reimbursing business | ||||||
| 12 | district project costs, but in no event more than 23 years | ||||||
| 13 | after the date of adoption of the ordinance imposing taxes | ||||||
| 14 | pursuant to subsection (10) or (11) of Section 11-74.3-3, the | ||||||
| 15 | municipality shall adopt an ordinance immediately rescinding | ||||||
| 16 | the taxes imposed pursuant to subsection (10) or (11) of | ||||||
| 17 | Section 11-74.3-3. | ||||||
| 18 | (Source: P.A. 101-10, eff. 6-5-19; 101-604, eff. 12-13-19; | ||||||
| 19 | 102-700, eff. 4-19-22.)
| ||||||
| 20 | Section 75-40. The Civic Center Code is amended by | ||||||
| 21 | changing Section 245-12 as follows:
| ||||||
| 22 | (70 ILCS 200/245-12) | ||||||
| 23 | Sec. 245-12. Use and occupation taxes. | ||||||
| 24 | (a) The Authority may adopt a resolution that authorizes a | ||||||
| |||||||
| |||||||
| 1 | referendum on the question of whether the Authority shall be | ||||||
| 2 | authorized to impose a retailers' occupation tax, a service | ||||||
| 3 | occupation tax, and a use tax in one-quarter percent | ||||||
| 4 | increments at a rate not to exceed 1%. The Authority shall | ||||||
| 5 | certify the question to the proper election authorities who | ||||||
| 6 | shall submit the question to the voters of the metropolitan | ||||||
| 7 | area at the next regularly scheduled election in accordance | ||||||
| 8 | with the general election law. The question shall be in | ||||||
| 9 | substantially the following form: | ||||||
| 10 | "Shall the Salem Civic Center Authority be authorized to | ||||||
| 11 | impose a retailers' occupation tax, a service occupation | ||||||
| 12 | tax, and a use tax at the rate of (rate) for the sole | ||||||
| 13 | purpose of obtaining funds for the support, construction, | ||||||
| 14 | maintenance, or financing of a facility of the Authority?" | ||||||
| 15 | Votes shall be recorded as "yes" or "no". | ||||||
| 16 | If a majority of all votes cast on the proposition are in | ||||||
| 17 | favor of the proposition, the Authority is authorized to | ||||||
| 18 | impose the tax. | ||||||
| 19 | (b) The Authority shall impose the retailers' occupation | ||||||
| 20 | tax upon all persons engaged in the business of selling | ||||||
| 21 | tangible personal property at retail in the metropolitan area, | ||||||
| 22 | at the rate approved by referendum, on the gross receipts from | ||||||
| 23 | the sales made in the course of such business within the | ||||||
| 24 | metropolitan area. Beginning December 1, 2019 and through | ||||||
| 25 | December 31, 2020, this tax is not imposed on sales of aviation | ||||||
| 26 | fuel unless the tax revenue is expended for airport-related | ||||||
| |||||||
| |||||||
| 1 | purposes. If the Authority does not have an airport-related | ||||||
| 2 | purpose to which it dedicates aviation fuel tax revenue, then | ||||||
| 3 | aviation fuel is excluded from the tax. The Authority must | ||||||
| 4 | comply with the certification requirements for airport-related | ||||||
| 5 | purposes under Section 2-22 of the Retailers' Occupation Tax | ||||||
| 6 | Act. For purposes of this Section, "airport-related purposes" | ||||||
| 7 | has the meaning ascribed in Section 6z-20.2 of the State | ||||||
| 8 | Finance Act. Beginning January 1, 2021, this tax is not | ||||||
| 9 | imposed on sales of aviation fuel for so long as the revenue | ||||||
| 10 | use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are | ||||||
| 11 | binding on the Authority. | ||||||
| 12 | The tax imposed under this Section and all civil penalties | ||||||
| 13 | that may be assessed as an incident thereof shall be collected | ||||||
| 14 | and enforced by the Department of Revenue. The Department has | ||||||
| 15 | full power to administer and enforce this Section; to collect | ||||||
| 16 | all taxes and penalties so collected in the manner provided in | ||||||
| 17 | this Section; and to determine all rights to credit memoranda | ||||||
| 18 | arising on account of the erroneous payment of tax or penalty | ||||||
| 19 | hereunder. In the administration of, and compliance with, this | ||||||
| 20 | Section, the Department and persons who are subject to this | ||||||
| 21 | Section shall (i) have the same rights, remedies, privileges, | ||||||
| 22 | immunities, powers and duties, (ii) be subject to the same | ||||||
| 23 | conditions, restrictions, limitations, penalties, exclusions, | ||||||
| 24 | exemptions, and definitions of terms, and (iii) employ the | ||||||
| 25 | same modes of procedure as are prescribed in Sections 1, 1a, | ||||||
| 26 | 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 1k, 1m, 1n, 2, 2-5, 2-5.5, 2-10 | ||||||
| |||||||
| |||||||
| 1 | (in respect to all provisions therein other than the State | ||||||
| 2 | rate of tax), 2-12, 2-15 through 2-70, 2a, 2b, 2c, 3 (except as | ||||||
| 3 | to the disposition of taxes and penalties collected and | ||||||
| 4 | provisions related to quarter monthly payments, and except | ||||||
| 5 | that the retailer's discount is not allowed for taxes paid on | ||||||
| 6 | aviation fuel that are subject to the revenue use requirements | ||||||
| 7 | of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c, | ||||||
| 8 | 5d, 5e, 5f, 5g, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, | ||||||
| 9 | 11a, 12, and 13 of the Retailers' Occupation Tax Act and | ||||||
| 10 | Section 3-7 of the Uniform Penalty and Interest Act, as fully | ||||||
| 11 | as if those provisions were set forth in this subsection. | ||||||
| 12 | Persons subject to any tax imposed under this subsection | ||||||
| 13 | may reimburse themselves for their seller's tax liability by | ||||||
| 14 | separately stating the tax as an additional charge, which | ||||||
| 15 | charge may be stated in combination, in a single amount, with | ||||||
| 16 | State taxes that sellers are required to collect, in | ||||||
| 17 | accordance with such bracket schedules as the Department may | ||||||
| 18 | prescribe. | ||||||
| 19 | Whenever the Department determines that a refund should be | ||||||
| 20 | made under this subsection to a claimant instead of issuing a | ||||||
| 21 | credit memorandum, the Department shall notify the State | ||||||
| 22 | Comptroller, who shall cause the warrant to be drawn for the | ||||||
| 23 | amount specified, and to the person named, in the notification | ||||||
| 24 | from the Department. The refund shall be paid by the State | ||||||
| 25 | Treasurer out of the tax fund referenced under paragraph (g) | ||||||
| 26 | of this Section or the Local Government Aviation Trust Fund, | ||||||
| |||||||
| |||||||
| 1 | as appropriate. | ||||||
| 2 | If a tax is imposed under this subsection (b), a tax shall | ||||||
| 3 | also be imposed at the same rate under subsections (c) and (d) | ||||||
| 4 | of this Section. | ||||||
| 5 | For the purpose of determining whether a tax authorized | ||||||
| 6 | under this Section is applicable, a retail sale, by a producer | ||||||
| 7 | of coal or other mineral mined in Illinois, is a sale at retail | ||||||
| 8 | at the place where the coal or other mineral mined in Illinois | ||||||
| 9 | is extracted from the earth. This paragraph does not apply to | ||||||
| 10 | coal or other mineral when it is delivered or shipped by the | ||||||
| 11 | seller to the purchaser at a point outside Illinois so that the | ||||||
| 12 | sale is exempt under the Federal Constitution as a sale in | ||||||
| 13 | interstate or foreign commerce. | ||||||
| 14 | Nothing in this Section shall be construed to authorize | ||||||
| 15 | the Authority to impose a tax upon the privilege of engaging in | ||||||
| 16 | any business which under the Constitution of the United States | ||||||
| 17 | may not be made the subject of taxation by this State. | ||||||
| 18 | (c) If a tax has been imposed under subsection (b), a | ||||||
| 19 | service occupation tax shall also be imposed at the same rate | ||||||
| 20 | upon all persons engaged, in the metropolitan area, in the | ||||||
| 21 | business of making sales of service, who, as an incident to | ||||||
| 22 | making those sales of service, transfer tangible personal | ||||||
| 23 | property within the metropolitan area as an incident to a sale | ||||||
| 24 | of service. The tax imposed under this subsection and all | ||||||
| 25 | civil penalties that may be assessed as an incident thereof | ||||||
| 26 | shall be collected and enforced by the Department of Revenue. | ||||||
| |||||||
| |||||||
| 1 | Beginning December 1, 2019 and through December 31, 2020, | ||||||
| 2 | this tax is not imposed on sales of aviation fuel unless the | ||||||
| 3 | tax revenue is expended for airport-related purposes. If the | ||||||
| 4 | Authority does not have an airport-related purpose to which it | ||||||
| 5 | dedicates aviation fuel tax revenue, then aviation fuel is | ||||||
| 6 | excluded from the tax. The Authority must comply with the | ||||||
| 7 | certification requirements for airport-related purposes under | ||||||
| 8 | Section 2-22 of the Retailers' Occupation Tax Act. Beginning | ||||||
| 9 | January 1, 2021, this tax is not imposed on sales of aviation | ||||||
| 10 | fuel for so long as the revenue use requirements of 49 U.S.C. | ||||||
| 11 | 47107(b) and 49 U.S.C. 47133 are binding on the Authority. | ||||||
| 12 | The Department has full power to administer and enforce | ||||||
| 13 | this paragraph; to collect all taxes and penalties due | ||||||
| 14 | hereunder; to dispose of taxes and penalties so collected in | ||||||
| 15 | the manner hereinafter provided; and to determine all rights | ||||||
| 16 | to credit memoranda arising on account of the erroneous | ||||||
| 17 | payment of tax or penalty hereunder. In the administration of, | ||||||
| 18 | and compliance with this paragraph, the Department and persons | ||||||
| 19 | who are subject to this paragraph shall (i) have the same | ||||||
| 20 | rights, remedies, privileges, immunities, powers, and duties, | ||||||
| 21 | (ii) be subject to the same conditions, restrictions, | ||||||
| 22 | limitations, penalties, exclusions, exemptions, and | ||||||
| 23 | definitions of terms, and (iii) employ the same modes of | ||||||
| 24 | procedure as are prescribed in Sections 2 (except that the | ||||||
| 25 | reference to State in the definition of supplier maintaining a | ||||||
| 26 | place of business in this State shall mean the metropolitan | ||||||
| |||||||
| |||||||
| 1 | area), 2a, 2b, 3 through 3-55 (in respect to all provisions | ||||||
| 2 | therein other than the State rate of tax), 4 (except that the | ||||||
| 3 | reference to the State shall be to the Authority), 5, 7, 8 | ||||||
| 4 | (except that the jurisdiction to which the tax shall be a debt | ||||||
| 5 | to the extent indicated in that Section 8 shall be the | ||||||
| 6 | Authority), 9 (except as to the disposition of taxes and | ||||||
| 7 | penalties collected, and except that the returned merchandise | ||||||
| 8 | credit for this tax may not be taken against any State tax, and | ||||||
| 9 | except that the retailer's discount is not allowed for taxes | ||||||
| 10 | paid on aviation fuel that are subject to the revenue use | ||||||
| 11 | requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 11, | ||||||
| 12 | 12 (except the reference therein to Section 2b of the | ||||||
| 13 | Retailers' Occupation Tax Act), 13 (except that any reference | ||||||
| 14 | to the State shall mean the Authority), 15, 16, 17, 18, 19 and | ||||||
| 15 | 20 of the Service Occupation Tax Act and Section 3-7 of the | ||||||
| 16 | Uniform Penalty and Interest Act, as fully as if those | ||||||
| 17 | provisions were set forth herein. | ||||||
| 18 | Persons subject to any tax imposed under the authority | ||||||
| 19 | granted in this subsection may reimburse themselves for their | ||||||
| 20 | serviceman's tax liability by separately stating the tax as an | ||||||
| 21 | additional charge, which charge may be stated in combination, | ||||||
| 22 | in a single amount, with State tax that servicemen are | ||||||
| 23 | authorized to collect under the Service Use Tax Act, in | ||||||
| 24 | accordance with such bracket schedules as the Department may | ||||||
| 25 | prescribe. | ||||||
| 26 | Whenever the Department determines that a refund should be | ||||||
| |||||||
| |||||||
| 1 | made under this subsection to a claimant instead of issuing a | ||||||
| 2 | credit memorandum, the Department shall notify the State | ||||||
| 3 | Comptroller, who shall cause the warrant to be drawn for the | ||||||
| 4 | amount specified, and to the person named, in the notification | ||||||
| 5 | from the Department. The refund shall be paid by the State | ||||||
| 6 | Treasurer out of the tax fund referenced under paragraph (g) | ||||||
| 7 | of this Section or the Local Government Aviation Trust Fund, | ||||||
| 8 | as appropriate. | ||||||
| 9 | Nothing in this paragraph shall be construed to authorize | ||||||
| 10 | the Authority to impose a tax upon the privilege of engaging in | ||||||
| 11 | any business which under the Constitution of the United States | ||||||
| 12 | may not be made the subject of taxation by the State. | ||||||
| 13 | (c-5) If, on January 1, 2025, a unit of local government | ||||||
| 14 | has in effect a tax under this Section, or if, after January 1, | ||||||
| 15 | 2025, a unit of local government imposes a tax under this | ||||||
| 16 | Section, then that tax applies to leases of tangible personal | ||||||
| 17 | property in effect, entered into, or renewed on or after that | ||||||
| 18 | date in the same manner as the tax under this Section and in | ||||||
| 19 | accordance with the changes made by this amendatory Act of the | ||||||
| 20 | 103rd General Assembly. | ||||||
| 21 | (d) If a tax has been imposed under subsection (b), a use | ||||||
| 22 | tax shall also be imposed at the same rate upon the privilege | ||||||
| 23 | of using, in the metropolitan area, any item of tangible | ||||||
| 24 | personal property that is purchased outside the metropolitan | ||||||
| 25 | area at retail from a retailer, and that is titled or | ||||||
| 26 | registered at a location within the metropolitan area with an | ||||||
| |||||||
| |||||||
| 1 | agency of this State's government. "Selling price" is defined | ||||||
| 2 | as in the Use Tax Act. The tax shall be collected from persons | ||||||
| 3 | whose Illinois address for titling or registration purposes is | ||||||
| 4 | given as being in the metropolitan area. The tax shall be | ||||||
| 5 | collected by the Department of Revenue for the Authority. The | ||||||
| 6 | tax must be paid to the State, or an exemption determination | ||||||
| 7 | must be obtained from the Department of Revenue, before the | ||||||
| 8 | title or certificate of registration for the property may be | ||||||
| 9 | issued. The tax or proof of exemption may be transmitted to the | ||||||
| 10 | Department by way of the State agency with which, or the State | ||||||
| 11 | officer with whom, the tangible personal property must be | ||||||
| 12 | titled or registered if the Department and the State agency or | ||||||
| 13 | State officer determine that this procedure will expedite the | ||||||
| 14 | processing of applications for title or registration. | ||||||
| 15 | The Department has full power to administer and enforce | ||||||
| 16 | this paragraph; to collect all taxes, penalties and interest | ||||||
| 17 | due hereunder; to dispose of taxes, penalties and interest so | ||||||
| 18 | collected in the manner hereinafter provided; and to determine | ||||||
| 19 | all rights to credit memoranda or refunds arising on account | ||||||
| 20 | of the erroneous payment of tax, penalty or interest | ||||||
| 21 | hereunder. In the administration of, and compliance with, this | ||||||
| 22 | subsection, the Department and persons who are subject to this | ||||||
| 23 | paragraph shall (i) have the same rights, remedies, | ||||||
| 24 | privileges, immunities, powers, and duties, (ii) be subject to | ||||||
| 25 | the same conditions, restrictions, limitations, penalties, | ||||||
| 26 | exclusions, exemptions, and definitions of terms, and (iii) | ||||||
| |||||||
| |||||||
| 1 | employ the same modes of procedure as are prescribed in | ||||||
| 2 | Sections 2 (except the definition of "retailer maintaining a | ||||||
| 3 | place of business in this State"), 3, 3-5, 3-10, 3-45, 3-55, | ||||||
| 4 | 3-65, 3-70, 3-85, 3a, 4, 6, 7, 8 (except that the jurisdiction | ||||||
| 5 | to which the tax shall be a debt to the extent indicated in | ||||||
| 6 | that Section 8 shall be the Authority), 9 (except provisions | ||||||
| 7 | relating to quarter monthly payments), 10, 11, 12, 12a, 12b, | ||||||
| 8 | 13, 14, 15, 19, 20, 21, and 22 of the Use Tax Act and Section | ||||||
| 9 | 3-7 of the Uniform Penalty and Interest Act, that are not | ||||||
| 10 | inconsistent with this paragraph, as fully as if those | ||||||
| 11 | provisions were set forth herein. | ||||||
| 12 | Whenever the Department determines that a refund should be | ||||||
| 13 | made under this subsection to a claimant instead of issuing a | ||||||
| 14 | credit memorandum, the Department shall notify the State | ||||||
| 15 | Comptroller, who shall cause the order to be drawn for the | ||||||
| 16 | amount specified, and to the person named, in the notification | ||||||
| 17 | from the Department. The refund shall be paid by the State | ||||||
| 18 | Treasurer out of the tax fund referenced under paragraph (g) | ||||||
| 19 | of this Section. | ||||||
| 20 | (e) A certificate of registration issued by the State | ||||||
| 21 | Department of Revenue to a retailer under the Retailers' | ||||||
| 22 | Occupation Tax Act or under the Service Occupation Tax Act | ||||||
| 23 | shall permit the registrant to engage in a business that is | ||||||
| 24 | taxed under the tax imposed under paragraphs (b), (c), or (d) | ||||||
| 25 | of this Section and no additional registration shall be | ||||||
| 26 | required. A certificate issued under the Use Tax Act or the | ||||||
| |||||||
| |||||||
| 1 | Service Use Tax Act shall be applicable with regard to any tax | ||||||
| 2 | imposed under paragraph (c) of this Section. | ||||||
| 3 | (f) The results of any election authorizing a proposition | ||||||
| 4 | to impose a tax under this Section or effecting a change in the | ||||||
| 5 | rate of tax shall be certified by the proper election | ||||||
| 6 | authorities and filed with the Illinois Department on or | ||||||
| 7 | before the first day of April. In addition, an ordinance | ||||||
| 8 | imposing, discontinuing, or effecting a change in the rate of | ||||||
| 9 | tax under this Section shall be adopted and a certified copy | ||||||
| 10 | thereof filed with the Department on or before the first day of | ||||||
| 11 | April. After proper receipt of such certifications, the | ||||||
| 12 | Department shall proceed to administer and enforce this | ||||||
| 13 | Section as of the first day of July next following such | ||||||
| 14 | adoption and filing. | ||||||
| 15 | (g) Except as otherwise provided, the Department of | ||||||
| 16 | Revenue shall, upon collecting any taxes and penalties as | ||||||
| 17 | provided in this Section, pay the taxes and penalties over to | ||||||
| 18 | the State Treasurer as trustee for the Authority. The taxes | ||||||
| 19 | and penalties shall be held in a trust fund outside the State | ||||||
| 20 | Treasury. Taxes and penalties collected on aviation fuel sold | ||||||
| 21 | on or after December 1, 2019 and through December 31, 2020, | ||||||
| 22 | shall be immediately paid over by the Department to the State | ||||||
| 23 | Treasurer, ex officio, as trustee, for deposit into the Local | ||||||
| 24 | Government Aviation Trust Fund. The Department shall only pay | ||||||
| 25 | moneys into the Local Government Aviation Trust Fund under | ||||||
| 26 | this Section for so long as the revenue use requirements of 49 | ||||||
| |||||||
| |||||||
| 1 | U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the | ||||||
| 2 | District. On or before the 25th day of each calendar month, the | ||||||
| 3 | Department of Revenue shall prepare and certify to the | ||||||
| 4 | Comptroller of the State of Illinois the amount to be paid to | ||||||
| 5 | the Authority, which shall be the balance in the fund, less any | ||||||
| 6 | amount determined by the Department to be necessary for the | ||||||
| 7 | payment of refunds and not including taxes and penalties | ||||||
| 8 | collected on aviation fuel sold on or after December 1, 2019. | ||||||
| 9 | Within 10 days after receipt by the Comptroller of the | ||||||
| 10 | certification of the amount to be paid to the Authority, the | ||||||
| 11 | Comptroller shall cause an order to be drawn for payment for | ||||||
| 12 | the amount in accordance with the directions contained in the | ||||||
| 13 | certification. Amounts received from the tax imposed under | ||||||
| 14 | this Section shall be used only for the support, construction, | ||||||
| 15 | maintenance, or financing of a facility of the Authority. | ||||||
| 16 | (h) When certifying the amount of a monthly disbursement | ||||||
| 17 | to the Authority under this Section, the Department shall | ||||||
| 18 | increase or decrease the amounts by an amount necessary to | ||||||
| 19 | offset any miscalculation of previous disbursements. The | ||||||
| 20 | offset amount shall be the amount erroneously disbursed within | ||||||
| 21 | the previous 6 months from the time a miscalculation is | ||||||
| 22 | discovered. | ||||||
| 23 | (i) This Section may be cited as the Salem Civic Center Use | ||||||
| 24 | and Occupation Tax Law. | ||||||
| 25 | (Source: P.A. 101-10, eff. 6-5-19; 101-604, eff. 12-13-19.)
| ||||||
| |||||||
| |||||||
| 1 | Section 75-45. The Flood Prevention District Act is | ||||||
| 2 | amended by changing Section 25 as follows:
| ||||||
| 3 | (70 ILCS 750/25) | ||||||
| 4 | Sec. 25. Flood prevention retailers' and service | ||||||
| 5 | occupation taxes. | ||||||
| 6 | (a) If the Board of Commissioners of a flood prevention | ||||||
| 7 | district determines that an emergency situation exists | ||||||
| 8 | regarding levee repair or flood prevention, and upon an | ||||||
| 9 | ordinance confirming the determination adopted by the | ||||||
| 10 | affirmative vote of a majority of the members of the county | ||||||
| 11 | board of the county in which the district is situated, the | ||||||
| 12 | county may impose a flood prevention retailers' occupation tax | ||||||
| 13 | upon all persons engaged in the business of selling tangible | ||||||
| 14 | personal property at retail within the territory of the | ||||||
| 15 | district to provide revenue to pay the costs of providing | ||||||
| 16 | emergency levee repair and flood prevention and to secure the | ||||||
| 17 | payment of bonds, notes, and other evidences of indebtedness | ||||||
| 18 | issued under this Act for a period not to exceed 25 years or as | ||||||
| 19 | required to repay the bonds, notes, and other evidences of | ||||||
| 20 | indebtedness issued under this Act. The tax rate shall be | ||||||
| 21 | 0.25% of the gross receipts from all taxable sales made in the | ||||||
| 22 | course of that business. Beginning December 1, 2019 and | ||||||
| 23 | through December 31, 2020, this tax is not imposed on sales of | ||||||
| 24 | aviation fuel unless the tax revenue is expended for | ||||||
| 25 | airport-related purposes. If the District does not have an | ||||||
| |||||||
| |||||||
| 1 | airport-related purpose to which it dedicates aviation fuel | ||||||
| 2 | tax revenue, then aviation fuel is excluded from the tax. The | ||||||
| 3 | County must comply with the certification requirements for | ||||||
| 4 | airport-related purposes under Section 2-22 of the Retailers' | ||||||
| 5 | Occupation Tax Act. The tax imposed under this Section and all | ||||||
| 6 | civil penalties that may be assessed as an incident thereof | ||||||
| 7 | shall be collected and enforced by the State Department of | ||||||
| 8 | Revenue. The Department shall have full power to administer | ||||||
| 9 | and enforce this Section; to collect all taxes and penalties | ||||||
| 10 | so collected in the manner hereinafter provided; and to | ||||||
| 11 | determine all rights to credit memoranda arising on account of | ||||||
| 12 | the erroneous payment of tax or penalty hereunder. | ||||||
| 13 | For purposes of this Act, "airport-related purposes" has | ||||||
| 14 | the meaning ascribed in Section 6z-20.2 of the State Finance | ||||||
| 15 | Act. Beginning January 1, 2021, this tax is not imposed on | ||||||
| 16 | sales of aviation fuel for so long as the revenue use | ||||||
| 17 | requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are | ||||||
| 18 | binding on the District. | ||||||
| 19 | In the administration of and compliance with this | ||||||
| 20 | subsection, the Department and persons who are subject to this | ||||||
| 21 | subsection (i) have the same rights, remedies, privileges, | ||||||
| 22 | immunities, powers, and duties, (ii) are subject to the same | ||||||
| 23 | conditions, restrictions, limitations, penalties, and | ||||||
| 24 | definitions of terms, and (iii) shall employ the same modes of | ||||||
| 25 | procedure as are set forth in Sections 1 through 1o, 2 through | ||||||
| 26 | 2-70 (in respect to all provisions contained in those Sections | ||||||
| |||||||
| |||||||
| 1 | other than the State rate of tax), 2a through 2h, 3 (except as | ||||||
| 2 | to the disposition of taxes and penalties collected, and | ||||||
| 3 | except that the retailer's discount is not allowed for taxes | ||||||
| 4 | paid on aviation fuel that are subject to the revenue use | ||||||
| 5 | requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, | ||||||
| 6 | 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5l, 6, 6a, 6b, 6c, 6d, 7, | ||||||
| 7 | 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' Occupation Tax | ||||||
| 8 | Act and all provisions of the Uniform Penalty and Interest Act | ||||||
| 9 | as if those provisions were set forth in this subsection. | ||||||
| 10 | Persons subject to any tax imposed under this Section may | ||||||
| 11 | reimburse themselves for their seller's tax liability | ||||||
| 12 | hereunder by separately stating the tax as an additional | ||||||
| 13 | charge, which charge may be stated in combination in a single | ||||||
| 14 | amount with State taxes that sellers are required to collect | ||||||
| 15 | under the Use Tax Act, under any bracket schedules the | ||||||
| 16 | Department may prescribe. | ||||||
| 17 | If a tax is imposed under this subsection (a), a tax shall | ||||||
| 18 | also be imposed under subsection (b) of this Section. | ||||||
| 19 | (b) If a tax has been imposed under subsection (a), a flood | ||||||
| 20 | prevention service occupation tax shall also be imposed upon | ||||||
| 21 | all persons engaged within the territory of the district in | ||||||
| 22 | the business of making sales of service, who, as an incident to | ||||||
| 23 | making the sales of service, transfer tangible personal | ||||||
| 24 | property, either in the form of tangible personal property or | ||||||
| 25 | in the form of real estate as an incident to a sale of service | ||||||
| 26 | to provide revenue to pay the costs of providing emergency | ||||||
| |||||||
| |||||||
| 1 | levee repair and flood prevention and to secure the payment of | ||||||
| 2 | bonds, notes, and other evidences of indebtedness issued under | ||||||
| 3 | this Act for a period not to exceed 25 years or as required to | ||||||
| 4 | repay the bonds, notes, and other evidences of indebtedness. | ||||||
| 5 | The tax rate shall be 0.25% of the selling price of all | ||||||
| 6 | tangible personal property transferred. Beginning December 1, | ||||||
| 7 | 2019 and through December 31, 2020, this tax is not imposed on | ||||||
| 8 | sales of aviation fuel unless the tax revenue is expended for | ||||||
| 9 | airport-related purposes. If the District does not have an | ||||||
| 10 | airport-related purpose to which it dedicates aviation fuel | ||||||
| 11 | tax revenue, then aviation fuel is excluded from the tax. The | ||||||
| 12 | County must comply with the certification requirements for | ||||||
| 13 | airport-related purposes under Section 2-22 of the Retailers' | ||||||
| 14 | Occupation Tax Act. For purposes of this Act, "airport-related | ||||||
| 15 | purposes" has the meaning ascribed in Section 6z-20.2 of the | ||||||
| 16 | State Finance Act. Beginning January 1, 2021, this tax is not | ||||||
| 17 | imposed on sales of aviation fuel for so long as the revenue | ||||||
| 18 | use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are | ||||||
| 19 | binding on the District. | ||||||
| 20 | The tax imposed under this subsection and all civil | ||||||
| 21 | penalties that may be assessed as an incident thereof shall be | ||||||
| 22 | collected and enforced by the State Department of Revenue. The | ||||||
| 23 | Department shall have full power to administer and enforce | ||||||
| 24 | this subsection; to collect all taxes and penalties due | ||||||
| 25 | hereunder; to dispose of taxes and penalties collected in the | ||||||
| 26 | manner hereinafter provided; and to determine all rights to | ||||||
| |||||||
| |||||||
| 1 | credit memoranda arising on account of the erroneous payment | ||||||
| 2 | of tax or penalty hereunder. | ||||||
| 3 | In the administration of and compliance with this | ||||||
| 4 | subsection, the Department and persons who are subject to this | ||||||
| 5 | subsection shall (i) have the same rights, remedies, | ||||||
| 6 | privileges, immunities, powers, and duties, (ii) be subject to | ||||||
| 7 | the same conditions, restrictions, limitations, penalties, and | ||||||
| 8 | definitions of terms, and (iii) employ the same modes of | ||||||
| 9 | procedure as are set forth in Sections 2 (except that the | ||||||
| 10 | reference to State in the definition of supplier maintaining a | ||||||
| 11 | place of business in this State means the district), 2a | ||||||
| 12 | through 2d, 3 through 3-50 (in respect to all provisions | ||||||
| 13 | contained in those Sections other than the State rate of tax), | ||||||
| 14 | 4 (except that the reference to the State shall be to the | ||||||
| 15 | district), 5, 7, 8 (except that the jurisdiction to which the | ||||||
| 16 | tax is a debt to the extent indicated in that Section 8 is the | ||||||
| 17 | district), 9 (except as to the disposition of taxes and | ||||||
| 18 | penalties collected, and except that the retailer's discount | ||||||
| 19 | is not allowed for taxes paid on aviation fuel that are subject | ||||||
| 20 | to the revenue use requirements of 49 U.S.C. 47107(b) and 49 | ||||||
| 21 | U.S.C. 47133), 10, 11, 12 (except the reference therein to | ||||||
| 22 | Section 2b of the Retailers' Occupation Tax Act), 13 (except | ||||||
| 23 | that any reference to the State means the district), Section | ||||||
| 24 | 15, 16, 17, 18, 19, and 20 of the Service Occupation Tax Act | ||||||
| 25 | and all provisions of the Uniform Penalty and Interest Act, as | ||||||
| 26 | fully as if those provisions were set forth herein. | ||||||
| |||||||
| |||||||
| 1 | Persons subject to any tax imposed under the authority | ||||||
| 2 | granted in this subsection may reimburse themselves for their | ||||||
| 3 | serviceman's tax liability hereunder by separately stating the | ||||||
| 4 | tax as an additional charge, that charge may be stated in | ||||||
| 5 | combination in a single amount with State tax that servicemen | ||||||
| 6 | are authorized to collect under the Service Use Tax Act, under | ||||||
| 7 | any bracket schedules the Department may prescribe. | ||||||
| 8 | (c) The taxes imposed in subsections (a) and (b) may not be | ||||||
| 9 | imposed on personal property titled or registered with an | ||||||
| 10 | agency of the State or on personal property taxed at the 1% | ||||||
| 11 | rate under the Retailers' Occupation Tax Act and the Service | ||||||
| 12 | Occupation Tax Act (or at the 0% rate imposed under this | ||||||
| 13 | amendatory Act of the 102nd General Assembly). | ||||||
| 14 | (c-5) If, on January 1, 2025, a unit of local government | ||||||
| 15 | has in effect a tax under this Section, or if, after January 1, | ||||||
| 16 | 2025, a unit of local government imposes a tax under this | ||||||
| 17 | Section, then that tax applies to leases of tangible personal | ||||||
| 18 | property in effect, entered into, or renewed on or after that | ||||||
| 19 | date in the same manner as the tax under this Section and in | ||||||
| 20 | accordance with the changes made by this amendatory Act of the | ||||||
| 21 | 103rd General Assembly. | ||||||
| 22 | (d) Nothing in this Section shall be construed to | ||||||
| 23 | authorize the district to impose a tax upon the privilege of | ||||||
| 24 | engaging in any business that under the Constitution of the | ||||||
| 25 | United States may not be made the subject of taxation by the | ||||||
| 26 | State. | ||||||
| |||||||
| |||||||
| 1 | (e) The certificate of registration that is issued by the | ||||||
| 2 | Department to a retailer under the Retailers' Occupation Tax | ||||||
| 3 | Act or a serviceman under the Service Occupation Tax Act | ||||||
| 4 | permits the retailer or serviceman to engage in a business | ||||||
| 5 | that is taxable without registering separately with the | ||||||
| 6 | Department under an ordinance or resolution under this | ||||||
| 7 | Section. | ||||||
| 8 | (f) Except as otherwise provided, the Department shall | ||||||
| 9 | immediately pay over to the State Treasurer, ex officio, as | ||||||
| 10 | trustee, all taxes and penalties collected under this Section | ||||||
| 11 | to be deposited into the Flood Prevention Occupation Tax Fund, | ||||||
| 12 | which shall be an unappropriated trust fund held outside the | ||||||
| 13 | State treasury. Taxes and penalties collected on aviation fuel | ||||||
| 14 | sold on or after December 1, 2019 and through December 31, | ||||||
| 15 | 2020, shall be immediately paid over by the Department to the | ||||||
| 16 | State Treasurer, ex officio, as trustee, for deposit into the | ||||||
| 17 | Local Government Aviation Trust Fund. The Department shall | ||||||
| 18 | only pay moneys into the Local Government Aviation Trust Fund | ||||||
| 19 | under this Act for so long as the revenue use requirements of | ||||||
| 20 | 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the | ||||||
| 21 | District. | ||||||
| 22 | On or before the 25th day of each calendar month, the | ||||||
| 23 | Department shall prepare and certify to the Comptroller the | ||||||
| 24 | disbursement of stated sums of money to the counties from | ||||||
| 25 | which retailers or servicemen have paid taxes or penalties to | ||||||
| 26 | the Department during the second preceding calendar month. The | ||||||
| |||||||
| |||||||
| 1 | amount to be paid to each county is equal to the amount (not | ||||||
| 2 | including credit memoranda and not including taxes and | ||||||
| 3 | penalties collected on aviation fuel sold on or after December | ||||||
| 4 | 1, 2019 and through December 31, 2020) collected from the | ||||||
| 5 | county under this Section during the second preceding calendar | ||||||
| 6 | month by the Department, (i) less 2% of that amount (except the | ||||||
| 7 | amount collected on aviation fuel sold on or after December 1, | ||||||
| 8 | 2019 and through December 31, 2020), which shall be deposited | ||||||
| 9 | into the Tax Compliance and Administration Fund and shall be | ||||||
| 10 | used by the Department in administering and enforcing the | ||||||
| 11 | provisions of this Section on behalf of the county, (ii) plus | ||||||
| 12 | an amount that the Department determines is necessary to | ||||||
| 13 | offset any amounts that were erroneously paid to a different | ||||||
| 14 | taxing body; (iii) less an amount equal to the amount of | ||||||
| 15 | refunds made during the second preceding calendar month by the | ||||||
| 16 | Department on behalf of the county; and (iv) less any amount | ||||||
| 17 | that the Department determines is necessary to offset any | ||||||
| 18 | amounts that were payable to a different taxing body but were | ||||||
| 19 | erroneously paid to the county. When certifying the amount of | ||||||
| 20 | a monthly disbursement to a county under this Section, the | ||||||
| 21 | Department shall increase or decrease the amounts by an amount | ||||||
| 22 | necessary to offset any miscalculation of previous | ||||||
| 23 | disbursements within the previous 6 months from the time a | ||||||
| 24 | miscalculation is discovered. | ||||||
| 25 | Within 10 days after receipt by the Comptroller from the | ||||||
| 26 | Department of the disbursement certification to the counties | ||||||
| |||||||
| |||||||
| 1 | provided for in this Section, the Comptroller shall cause the | ||||||
| 2 | orders to be drawn for the respective amounts in accordance | ||||||
| 3 | with directions contained in the certification. | ||||||
| 4 | If the Department determines that a refund should be made | ||||||
| 5 | under this Section to a claimant instead of issuing a credit | ||||||
| 6 | memorandum, then the Department shall notify the Comptroller, | ||||||
| 7 | who shall cause the order to be drawn for the amount specified | ||||||
| 8 | and to the person named in the notification from the | ||||||
| 9 | Department. The refund shall be paid by the Treasurer out of | ||||||
| 10 | the Flood Prevention Occupation Tax Fund or the Local | ||||||
| 11 | Government Aviation Trust Fund, as appropriate. | ||||||
| 12 | (g) If a county imposes a tax under this Section, then the | ||||||
| 13 | county board shall, by ordinance, discontinue the tax upon the | ||||||
| 14 | payment of all indebtedness of the flood prevention district. | ||||||
| 15 | The tax shall not be discontinued until all indebtedness of | ||||||
| 16 | the District has been paid. | ||||||
| 17 | (h) Any ordinance imposing the tax under this Section, or | ||||||
| 18 | any ordinance that discontinues the tax, must be certified by | ||||||
| 19 | the county clerk and filed with the Illinois Department of | ||||||
| 20 | Revenue either (i) on or before the first day of April, | ||||||
| 21 | whereupon the Department shall proceed to administer and | ||||||
| 22 | enforce the tax or change in the rate as of the first day of | ||||||
| 23 | July next following the filing; or (ii) on or before the first | ||||||
| 24 | day of October, whereupon the Department shall proceed to | ||||||
| 25 | administer and enforce the tax or change in the rate as of the | ||||||
| 26 | first day of January next following the filing. | ||||||
| |||||||
| |||||||
| 1 | (j) County Flood Prevention Occupation Tax Fund. All | ||||||
| 2 | proceeds received by a county from a tax distribution under | ||||||
| 3 | this Section must be maintained in a special fund known as the | ||||||
| 4 | [name of county] flood prevention occupation tax fund. The | ||||||
| 5 | county shall, at the direction of the flood prevention | ||||||
| 6 | district, use moneys in the fund to pay the costs of providing | ||||||
| 7 | emergency levee repair and flood prevention and to pay bonds, | ||||||
| 8 | notes, and other evidences of indebtedness issued under this | ||||||
| 9 | Act. | ||||||
| 10 | (k) This Section may be cited as the Flood Prevention | ||||||
| 11 | Occupation Tax Law. | ||||||
| 12 | (Source: P.A. 101-10, eff. 6-5-19; 101-604, eff. 12-13-19; | ||||||
| 13 | 102-700, eff. 4-19-22.)
| ||||||
| 14 | Section 75-50. The Metro-East Park and Recreation District | ||||||
| 15 | Act is amended by changing Section 30 as follows:
| ||||||
| 16 | (70 ILCS 1605/30) | ||||||
| 17 | Sec. 30. Taxes. | ||||||
| 18 | (a) The board shall impose a tax upon all persons engaged | ||||||
| 19 | in the business of selling tangible personal property, other | ||||||
| 20 | than personal property titled or registered with an agency of | ||||||
| 21 | this State's government, at retail in the District on the | ||||||
| 22 | gross receipts from the sales made in the course of business. | ||||||
| 23 | This tax shall be imposed only at the rate of one-tenth of one | ||||||
| 24 | per cent. | ||||||
| |||||||
| |||||||
| 1 | This additional tax may not be imposed on tangible | ||||||
| 2 | personal property taxed at the 1% rate under the Retailers' | ||||||
| 3 | Occupation Tax Act (or at the 0% rate imposed under this | ||||||
| 4 | amendatory Act of the 102nd General Assembly). Beginning | ||||||
| 5 | December 1, 2019 and through December 31, 2020, this tax is not | ||||||
| 6 | imposed on sales of aviation fuel unless the tax revenue is | ||||||
| 7 | expended for airport-related purposes. If the District does | ||||||
| 8 | not have an airport-related purpose to which it dedicates | ||||||
| 9 | aviation fuel tax revenue, then aviation fuel shall be | ||||||
| 10 | excluded from tax. The board must comply with the | ||||||
| 11 | certification requirements for airport-related purposes under | ||||||
| 12 | Section 2-22 of the Retailers' Occupation Tax Act. For | ||||||
| 13 | purposes of this Act, "airport-related purposes" has the | ||||||
| 14 | meaning ascribed in Section 6z-20.2 of the State Finance Act. | ||||||
| 15 | Beginning January 1, 2021, this tax is not imposed on sales of | ||||||
| 16 | aviation fuel for so long as the revenue use requirements of 49 | ||||||
| 17 | U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the | ||||||
| 18 | District. The tax imposed by the Board under this Section and | ||||||
| 19 | all civil penalties that may be assessed as an incident of the | ||||||
| 20 | tax shall be collected and enforced by the Department of | ||||||
| 21 | Revenue. The certificate of registration that is issued by the | ||||||
| 22 | Department to a retailer under the Retailers' Occupation Tax | ||||||
| 23 | Act shall permit the retailer to engage in a business that is | ||||||
| 24 | taxable without registering separately with the Department | ||||||
| 25 | under an ordinance or resolution under this Section. The | ||||||
| 26 | Department has full power to administer and enforce this | ||||||
| |||||||
| |||||||
| 1 | Section, to collect all taxes and penalties due under this | ||||||
| 2 | Section, to dispose of taxes and penalties so collected in the | ||||||
| 3 | manner provided in this Section, and to determine all rights | ||||||
| 4 | to credit memoranda arising on account of the erroneous | ||||||
| 5 | payment of a tax or penalty under this Section. In the | ||||||
| 6 | administration of and compliance with this Section, the | ||||||
| 7 | Department and persons who are subject to this Section shall | ||||||
| 8 | (i) have the same rights, remedies, privileges, immunities, | ||||||
| 9 | powers, and duties, (ii) be subject to the same conditions, | ||||||
| 10 | restrictions, limitations, penalties, and definitions of | ||||||
| 11 | terms, and (iii) employ the same modes of procedure as are | ||||||
| 12 | prescribed in Sections 1, 1a, 1a-1, 1d, 1e, 1f, 1i, 1j, 1k, 1m, | ||||||
| 13 | 1n, 2, 2-5, 2-5.5, 2-10 (in respect to all provisions | ||||||
| 14 | contained in those Sections other than the State rate of tax), | ||||||
| 15 | 2-12, 2-15 through 2-70, 2a, 2b, 2c, 3 (except provisions | ||||||
| 16 | relating to transaction returns and quarter monthly payments, | ||||||
| 17 | and except that the retailer's discount is not allowed for | ||||||
| 18 | taxes paid on aviation fuel that are subject to the revenue use | ||||||
| 19 | requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, | ||||||
| 20 | 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, | ||||||
| 21 | 6d, 7, 8, 9, 10, 11, 11a, 12, and 13 of the Retailers' | ||||||
| 22 | Occupation Tax Act and the Uniform Penalty and Interest Act as | ||||||
| 23 | if those provisions were set forth in this Section. | ||||||
| 24 | Persons subject to any tax imposed under the authority | ||||||
| 25 | granted in this Section may reimburse themselves for their | ||||||
| 26 | sellers' tax liability by separately stating the tax as an | ||||||
| |||||||
| |||||||
| 1 | additional charge, which charge may be stated in combination, | ||||||
| 2 | in a single amount, with State tax which sellers are required | ||||||
| 3 | to collect under the Use Tax Act, pursuant to such bracketed | ||||||
| 4 | schedules as the Department may prescribe. | ||||||
| 5 | Whenever the Department determines that a refund should be | ||||||
| 6 | made under this Section to a claimant instead of issuing a | ||||||
| 7 | credit memorandum, the Department shall notify the State | ||||||
| 8 | Comptroller, who shall cause the order to be drawn for the | ||||||
| 9 | amount specified and to the person named in the notification | ||||||
| 10 | from the Department. The refund shall be paid by the State | ||||||
| 11 | Treasurer out of the State Metro-East Park and Recreation | ||||||
| 12 | District Fund or the Local Government Aviation Trust Fund, as | ||||||
| 13 | appropriate. | ||||||
| 14 | (b) If a tax has been imposed under subsection (a), a | ||||||
| 15 | service occupation tax shall also be imposed at the same rate | ||||||
| 16 | upon all persons engaged, in the District, in the business of | ||||||
| 17 | making sales of service, who, as an incident to making those | ||||||
| 18 | sales of service, transfer tangible personal property within | ||||||
| 19 | the District as an incident to a sale of service. This tax may | ||||||
| 20 | not be imposed on tangible personal property taxed at the 1% | ||||||
| 21 | rate under the Service Occupation Tax Act (or at the 0% rate | ||||||
| 22 | imposed under this amendatory Act of the 102nd General | ||||||
| 23 | Assembly). Beginning December 1, 2019 and through December 31, | ||||||
| 24 | 2020, this tax may not be imposed on sales of aviation fuel | ||||||
| 25 | unless the tax revenue is expended for airport-related | ||||||
| 26 | purposes. If the District does not have an airport-related | ||||||
| |||||||
| |||||||
| 1 | purpose to which it dedicates aviation fuel tax revenue, then | ||||||
| 2 | aviation fuel shall be excluded from tax. The board must | ||||||
| 3 | comply with the certification requirements for airport-related | ||||||
| 4 | purposes under Section 2-22 of the Retailers' Occupation Tax | ||||||
| 5 | Act. For purposes of this Act, "airport-related purposes" has | ||||||
| 6 | the meaning ascribed in Section 6z-20.2 of the State Finance | ||||||
| 7 | Act. Beginning January 1, 2021, this tax is not imposed on | ||||||
| 8 | sales of aviation fuel for so long as the revenue use | ||||||
| 9 | requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are | ||||||
| 10 | binding on the District. The tax imposed under this subsection | ||||||
| 11 | and all civil penalties that may be assessed as an incident | ||||||
| 12 | thereof shall be collected and enforced by the Department of | ||||||
| 13 | Revenue. The Department has full power to administer and | ||||||
| 14 | enforce this subsection; to collect all taxes and penalties | ||||||
| 15 | due hereunder; to dispose of taxes and penalties so collected | ||||||
| 16 | in the manner hereinafter provided; and to determine all | ||||||
| 17 | rights to credit memoranda arising on account of the erroneous | ||||||
| 18 | payment of tax or penalty hereunder. In the administration of, | ||||||
| 19 | and compliance with this subsection, the Department and | ||||||
| 20 | persons who are subject to this paragraph shall (i) have the | ||||||
| 21 | same rights, remedies, privileges, immunities, powers, and | ||||||
| 22 | duties, (ii) be subject to the same conditions, restrictions, | ||||||
| 23 | limitations, penalties, exclusions, exemptions, and | ||||||
| 24 | definitions of terms, and (iii) employ the same modes of | ||||||
| 25 | procedure as are prescribed in Sections 2 (except that the | ||||||
| 26 | reference to State in the definition of supplier maintaining a | ||||||
| |||||||
| |||||||
| 1 | place of business in this State shall mean the District), 2a, | ||||||
| 2 | 2b, 2c, 3 through 3-50 (in respect to all provisions therein | ||||||
| 3 | other than the State rate of tax), 4 (except that the reference | ||||||
| 4 | to the State shall be to the District), 5, 7, 8 (except that | ||||||
| 5 | the jurisdiction to which the tax shall be a debt to the extent | ||||||
| 6 | indicated in that Section 8 shall be the District), 9 (except | ||||||
| 7 | as to the disposition of taxes and penalties collected, and | ||||||
| 8 | except that the retailer's discount is not allowed for taxes | ||||||
| 9 | paid on aviation fuel that are subject to the revenue use | ||||||
| 10 | requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 10, | ||||||
| 11 | 11, 12 (except the reference therein to Section 2b of the | ||||||
| 12 | Retailers' Occupation Tax Act), 13 (except that any reference | ||||||
| 13 | to the State shall mean the District), Sections 15, 16, 17, 18, | ||||||
| 14 | 19 and 20 of the Service Occupation Tax Act and the Uniform | ||||||
| 15 | Penalty and Interest Act, as fully as if those provisions were | ||||||
| 16 | set forth herein. | ||||||
| 17 | Persons subject to any tax imposed under the authority | ||||||
| 18 | granted in this subsection may reimburse themselves for their | ||||||
| 19 | serviceman's tax liability by separately stating the tax as an | ||||||
| 20 | additional charge, which charge may be stated in combination, | ||||||
| 21 | in a single amount, with State tax that servicemen are | ||||||
| 22 | authorized to collect under the Service Use Tax Act, in | ||||||
| 23 | accordance with such bracket schedules as the Department may | ||||||
| 24 | prescribe. | ||||||
| 25 | Whenever the Department determines that a refund should be | ||||||
| 26 | made under this subsection to a claimant instead of issuing a | ||||||
| |||||||
| |||||||
| 1 | credit memorandum, the Department shall notify the State | ||||||
| 2 | Comptroller, who shall cause the warrant to be drawn for the | ||||||
| 3 | amount specified, and to the person named, in the notification | ||||||
| 4 | from the Department. The refund shall be paid by the State | ||||||
| 5 | Treasurer out of the State Metro-East Park and Recreation | ||||||
| 6 | District Fund or the Local Government Aviation Trust Fund, as | ||||||
| 7 | appropriate. | ||||||
| 8 | Nothing in this subsection shall be construed to authorize | ||||||
| 9 | the board to impose a tax upon the privilege of engaging in any | ||||||
| 10 | business which under the Constitution of the United States may | ||||||
| 11 | not be made the subject of taxation by the State. | ||||||
| 12 | (b-5) If, on January 1, 2025, a unit of local government | ||||||
| 13 | has in effect a tax under this Section, or if, after January 1, | ||||||
| 14 | 2025, a unit of local government imposes a tax under this | ||||||
| 15 | Section, then that tax applies to leases of tangible personal | ||||||
| 16 | property in effect, entered into, or renewed on or after that | ||||||
| 17 | date in the same manner as the tax under this Section and in | ||||||
| 18 | accordance with the changes made by this amendatory Act of the | ||||||
| 19 | 103rd General Assembly. | ||||||
| 20 | (c) Except as otherwise provided in this paragraph, the | ||||||
| 21 | Department shall immediately pay over to the State Treasurer, | ||||||
| 22 | ex officio, as trustee, all taxes and penalties collected | ||||||
| 23 | under this Section to be deposited into the State Metro-East | ||||||
| 24 | Park and Recreation District Fund, which shall be an | ||||||
| 25 | unappropriated trust fund held outside of the State treasury. | ||||||
| 26 | Taxes and penalties collected on aviation fuel sold on or | ||||||
| |||||||
| |||||||
| 1 | after December 1, 2019 and through December 31, 2020, shall be | ||||||
| 2 | immediately paid over by the Department to the State | ||||||
| 3 | Treasurer, ex officio, as trustee, for deposit into the Local | ||||||
| 4 | Government Aviation Trust Fund. The Department shall only pay | ||||||
| 5 | moneys into the Local Government Aviation Trust Fund under | ||||||
| 6 | this Act for so long as the revenue use requirements of 49 | ||||||
| 7 | U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the | ||||||
| 8 | District. | ||||||
| 9 | As soon as possible after the first day of each month, | ||||||
| 10 | beginning January 1, 2011, upon certification of the | ||||||
| 11 | Department of Revenue, the Comptroller shall order | ||||||
| 12 | transferred, and the Treasurer shall transfer, to the STAR | ||||||
| 13 | Bonds Revenue Fund the local sales tax increment, as defined | ||||||
| 14 | in the Innovation Development and Economy Act, collected under | ||||||
| 15 | this Section during the second preceding calendar month for | ||||||
| 16 | sales within a STAR bond district. The Department shall make | ||||||
| 17 | this certification only if the Metro East Park and Recreation | ||||||
| 18 | District imposes a tax on real property as provided in the | ||||||
| 19 | definition of "local sales taxes" under the Innovation | ||||||
| 20 | Development and Economy Act. | ||||||
| 21 | After the monthly transfer to the STAR Bonds Revenue Fund, | ||||||
| 22 | on or before the 25th day of each calendar month, the | ||||||
| 23 | Department shall prepare and certify to the Comptroller the | ||||||
| 24 | disbursement of stated sums of money pursuant to Section 35 of | ||||||
| 25 | this Act to the District from which retailers have paid taxes | ||||||
| 26 | or penalties to the Department during the second preceding | ||||||
| |||||||
| |||||||
| 1 | calendar month. The amount to be paid to the District shall be | ||||||
| 2 | the amount (not including credit memoranda and not including | ||||||
| 3 | taxes and penalties collected on aviation fuel sold on or | ||||||
| 4 | after December 1, 2019 and through December 31, 2020) | ||||||
| 5 | collected under this Section during the second preceding | ||||||
| 6 | calendar month by the Department plus an amount the Department | ||||||
| 7 | determines is necessary to offset any amounts that were | ||||||
| 8 | erroneously paid to a different taxing body, and not including | ||||||
| 9 | (i) an amount equal to the amount of refunds made during the | ||||||
| 10 | second preceding calendar month by the Department on behalf of | ||||||
| 11 | the District, (ii) any amount that the Department determines | ||||||
| 12 | is necessary to offset any amounts that were payable to a | ||||||
| 13 | different taxing body but were erroneously paid to the | ||||||
| 14 | District, (iii) any amounts that are transferred to the STAR | ||||||
| 15 | Bonds Revenue Fund, and (iv) 1.5% of the remainder, which the | ||||||
| 16 | Department shall transfer into the Tax Compliance and | ||||||
| 17 | Administration Fund. The Department, at the time of each | ||||||
| 18 | monthly disbursement to the District, shall prepare and | ||||||
| 19 | certify to the State Comptroller the amount to be transferred | ||||||
| 20 | into the Tax Compliance and Administration Fund under this | ||||||
| 21 | subsection. Within 10 days after receipt by the Comptroller of | ||||||
| 22 | the disbursement certification to the District and the Tax | ||||||
| 23 | Compliance and Administration Fund provided for in this | ||||||
| 24 | Section to be given to the Comptroller by the Department, the | ||||||
| 25 | Comptroller shall cause the orders to be drawn for the | ||||||
| 26 | respective amounts in accordance with directions contained in | ||||||
| |||||||
| |||||||
| 1 | the certification. | ||||||
| 2 | (d) For the purpose of determining whether a tax | ||||||
| 3 | authorized under this Section is applicable, a retail sale by | ||||||
| 4 | a producer of coal or another mineral mined in Illinois is a | ||||||
| 5 | sale at retail at the place where the coal or other mineral | ||||||
| 6 | mined in Illinois is extracted from the earth. This paragraph | ||||||
| 7 | does not apply to coal or another mineral when it is delivered | ||||||
| 8 | or shipped by the seller to the purchaser at a point outside | ||||||
| 9 | Illinois so that the sale is exempt under the United States | ||||||
| 10 | Constitution as a sale in interstate or foreign commerce. | ||||||
| 11 | (e) Nothing in this Section shall be construed to | ||||||
| 12 | authorize the board to impose a tax upon the privilege of | ||||||
| 13 | engaging in any business that under the Constitution of the | ||||||
| 14 | United States may not be made the subject of taxation by this | ||||||
| 15 | State. | ||||||
| 16 | (f) An ordinance imposing a tax under this Section or an | ||||||
| 17 | ordinance extending the imposition of a tax to an additional | ||||||
| 18 | county or counties shall be certified by the board and filed | ||||||
| 19 | with the Department of Revenue either (i) on or before the | ||||||
| 20 | first day of April, whereupon the Department shall proceed to | ||||||
| 21 | administer and enforce the tax as of the first day of July next | ||||||
| 22 | following the filing; or (ii) on or before the first day of | ||||||
| 23 | October, whereupon the Department shall proceed to administer | ||||||
| 24 | and enforce the tax as of the first day of January next | ||||||
| 25 | following the filing. | ||||||
| 26 | (g) When certifying the amount of a monthly disbursement | ||||||
| |||||||
| |||||||
| 1 | to the District under this Section, the Department shall | ||||||
| 2 | increase or decrease the amounts by an amount necessary to | ||||||
| 3 | offset any misallocation of previous disbursements. The offset | ||||||
| 4 | amount shall be the amount erroneously disbursed within the | ||||||
| 5 | previous 6 months from the time a misallocation is discovered. | ||||||
| 6 | (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; | ||||||
| 7 | 101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
| ||||||
| 8 | Section 75-55. The Local Mass Transit District Act is | ||||||
| 9 | amended by changing Section 5.01 as follows:
| ||||||
| 10 | (70 ILCS 3610/5.01) (from Ch. 111 2/3, par. 355.01) | ||||||
| 11 | Sec. 5.01. Metro East Mass Transit District; use and | ||||||
| 12 | occupation taxes. | ||||||
| 13 | (a) The Board of Trustees of any Metro East Mass Transit | ||||||
| 14 | District may, by ordinance adopted with the concurrence of | ||||||
| 15 | two-thirds of the then trustees, impose throughout the | ||||||
| 16 | District any or all of the taxes and fees provided in this | ||||||
| 17 | Section. Except as otherwise provided, all taxes and fees | ||||||
| 18 | imposed under this Section shall be used only for public mass | ||||||
| 19 | transportation systems, and the amount used to provide mass | ||||||
| 20 | transit service to unserved areas of the District shall be in | ||||||
| 21 | the same proportion to the total proceeds as the number of | ||||||
| 22 | persons residing in the unserved areas is to the total | ||||||
| 23 | population of the District. Except as otherwise provided in | ||||||
| 24 | this Act, taxes imposed under this Section and civil penalties | ||||||
| |||||||
| |||||||
| 1 | imposed incident thereto shall be collected and enforced by | ||||||
| 2 | the State Department of Revenue. The Department shall have the | ||||||
| 3 | power to administer and enforce the taxes and to determine all | ||||||
| 4 | rights for refunds for erroneous payments of the taxes. | ||||||
| 5 | (b) The Board may impose a Metro East Mass Transit | ||||||
| 6 | District Retailers' Occupation Tax upon all persons engaged in | ||||||
| 7 | the business of selling tangible personal property at retail | ||||||
| 8 | in the district at a rate of 1/4 of 1%, or as authorized under | ||||||
| 9 | subsection (d-5) of this Section, of the gross receipts from | ||||||
| 10 | the sales made in the course of such business within the | ||||||
| 11 | district, except that the rate of tax imposed under this | ||||||
| 12 | Section on sales of aviation fuel on or after December 1, 2019 | ||||||
| 13 | shall be 0.25% in Madison County unless the Metro-East Mass | ||||||
| 14 | Transit District in Madison County has an "airport-related | ||||||
| 15 | purpose" and any additional amount authorized under subsection | ||||||
| 16 | (d-5) is expended for airport-related purposes. If there is no | ||||||
| 17 | airport-related purpose to which aviation fuel tax revenue is | ||||||
| 18 | dedicated, then aviation fuel is excluded from any additional | ||||||
| 19 | amount authorized under subsection (d-5). The rate in St. | ||||||
| 20 | Clair County shall be 0.25% unless the Metro-East Mass Transit | ||||||
| 21 | District in St. Clair County has an "airport-related purpose" | ||||||
| 22 | and the additional 0.50% of the 0.75% tax on aviation fuel | ||||||
| 23 | imposed in that County is expended for airport-related | ||||||
| 24 | purposes. If there is no airport-related purpose to which | ||||||
| 25 | aviation fuel tax revenue is dedicated, then aviation fuel is | ||||||
| 26 | excluded from the additional 0.50% of the 0.75% tax. | ||||||
| |||||||
| |||||||
| 1 | The Board must comply with the certification requirements | ||||||
| 2 | for airport-related purposes under Section 2-22 of the | ||||||
| 3 | Retailers' Occupation Tax Act. For purposes of this Section, | ||||||
| 4 | "airport-related purposes" has the meaning ascribed in Section | ||||||
| 5 | 6z-20.2 of the State Finance Act. This exclusion for aviation | ||||||
| 6 | fuel only applies for so long as the revenue use requirements | ||||||
| 7 | of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the | ||||||
| 8 | District. | ||||||
| 9 | The tax imposed under this Section and all civil penalties | ||||||
| 10 | that may be assessed as an incident thereof shall be collected | ||||||
| 11 | and enforced by the State Department of Revenue. The | ||||||
| 12 | Department shall have full power to administer and enforce | ||||||
| 13 | this Section; to collect all taxes and penalties so collected | ||||||
| 14 | in the manner hereinafter provided; and to determine all | ||||||
| 15 | rights to credit memoranda arising on account of the erroneous | ||||||
| 16 | payment of tax or penalty hereunder. In the administration of, | ||||||
| 17 | and compliance with, this Section, the Department and persons | ||||||
| 18 | who are subject to this Section shall have the same rights, | ||||||
| 19 | remedies, privileges, immunities, powers and duties, and be | ||||||
| 20 | subject to the same conditions, restrictions, limitations, | ||||||
| 21 | penalties, exclusions, exemptions and definitions of terms and | ||||||
| 22 | employ the same modes of procedure, as are prescribed in | ||||||
| 23 | Sections 1, 1a, 1a-1, 1c, 1d, 1e, 1f, 1i, 1j, 2 through 2-65 | ||||||
| 24 | (in respect to all provisions therein other than the State | ||||||
| 25 | rate of tax), 2c, 3 (except as to the disposition of taxes and | ||||||
| 26 | penalties collected, and except that the retailer's discount | ||||||
| |||||||
| |||||||
| 1 | is not allowed for taxes paid on aviation fuel that are subject | ||||||
| 2 | to the revenue use requirements of 49 U.S.C. 47107(b) and 49 | ||||||
| 3 | U.S.C. 47133), 4, 5, 5a, 5c, 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, | ||||||
| 4 | 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, 10, 11, 12, 13, and 14 of the | ||||||
| 5 | Retailers' Occupation Tax Act and Section 3-7 of the Uniform | ||||||
| 6 | Penalty and Interest Act, as fully as if those provisions were | ||||||
| 7 | set forth herein. | ||||||
| 8 | Persons subject to any tax imposed under the Section may | ||||||
| 9 | reimburse themselves for their seller's tax liability | ||||||
| 10 | hereunder by separately stating the tax as an additional | ||||||
| 11 | charge, which charge may be stated in combination, in a single | ||||||
| 12 | amount, with State taxes that sellers are required to collect | ||||||
| 13 | under the Use Tax Act, in accordance with such bracket | ||||||
| 14 | schedules as the Department may prescribe. | ||||||
| 15 | Whenever the Department determines that a refund should be | ||||||
| 16 | made under this Section to a claimant instead of issuing a | ||||||
| 17 | credit memorandum, the Department shall notify the State | ||||||
| 18 | Comptroller, who shall cause the warrant to be drawn for the | ||||||
| 19 | amount specified, and to the person named, in the notification | ||||||
| 20 | from the Department. The refund shall be paid by the State | ||||||
| 21 | Treasurer out of the Metro East Mass Transit District tax fund | ||||||
| 22 | established under paragraph (h) of this Section or the Local | ||||||
| 23 | Government Aviation Trust Fund, as appropriate. | ||||||
| 24 | If a tax is imposed under this subsection (b), a tax shall | ||||||
| 25 | also be imposed under subsections (c) and (d) of this Section. | ||||||
| 26 | For the purpose of determining whether a tax authorized | ||||||
| |||||||
| |||||||
| 1 | under this Section is applicable, a retail sale, by a producer | ||||||
| 2 | of coal or other mineral mined in Illinois, is a sale at retail | ||||||
| 3 | at the place where the coal or other mineral mined in Illinois | ||||||
| 4 | is extracted from the earth. This paragraph does not apply to | ||||||
| 5 | coal or other mineral when it is delivered or shipped by the | ||||||
| 6 | seller to the purchaser at a point outside Illinois so that the | ||||||
| 7 | sale is exempt under the Federal Constitution as a sale in | ||||||
| 8 | interstate or foreign commerce. | ||||||
| 9 | No tax shall be imposed or collected under this subsection | ||||||
| 10 | on the sale of a motor vehicle in this State to a resident of | ||||||
| 11 | another state if that motor vehicle will not be titled in this | ||||||
| 12 | State. | ||||||
| 13 | Nothing in this Section shall be construed to authorize | ||||||
| 14 | the Metro East Mass Transit District to impose a tax upon the | ||||||
| 15 | privilege of engaging in any business which under the | ||||||
| 16 | Constitution of the United States may not be made the subject | ||||||
| 17 | of taxation by this State. | ||||||
| 18 | (c) If a tax has been imposed under subsection (b), a Metro | ||||||
| 19 | East Mass Transit District Service Occupation Tax shall also | ||||||
| 20 | be imposed upon all persons engaged, in the district, in the | ||||||
| 21 | business of making sales of service, who, as an incident to | ||||||
| 22 | making those sales of service, transfer tangible personal | ||||||
| 23 | property within the District, either in the form of tangible | ||||||
| 24 | personal property or in the form of real estate as an incident | ||||||
| 25 | to a sale of service. The tax rate shall be 1/4%, or as | ||||||
| 26 | authorized under subsection (d-5) of this Section, of the | ||||||
| |||||||
| |||||||
| 1 | selling price of tangible personal property so transferred | ||||||
| 2 | within the district, except that the rate of tax imposed in | ||||||
| 3 | these Counties under this Section on sales of aviation fuel on | ||||||
| 4 | or after December 1, 2019 shall be 0.25% in Madison County | ||||||
| 5 | unless the Metro-East Mass Transit District in Madison County | ||||||
| 6 | has an "airport-related purpose" and any additional amount | ||||||
| 7 | authorized under subsection (d-5) is expended for | ||||||
| 8 | airport-related purposes. If there is no airport-related | ||||||
| 9 | purpose to which aviation fuel tax revenue is dedicated, then | ||||||
| 10 | aviation fuel is excluded from any additional amount | ||||||
| 11 | authorized under subsection (d-5). The rate in St. Clair | ||||||
| 12 | County shall be 0.25% unless the Metro-East Mass Transit | ||||||
| 13 | District in St. Clair County has an "airport-related purpose" | ||||||
| 14 | and the additional 0.50% of the 0.75% tax on aviation fuel is | ||||||
| 15 | expended for airport-related purposes. If there is no | ||||||
| 16 | airport-related purpose to which aviation fuel tax revenue is | ||||||
| 17 | dedicated, then aviation fuel is excluded from the additional | ||||||
| 18 | 0.50% of the 0.75% tax. | ||||||
| 19 | The Board must comply with the certification requirements | ||||||
| 20 | for airport-related purposes under Section 2-22 of the | ||||||
| 21 | Retailers' Occupation Tax Act. For purposes of this Section, | ||||||
| 22 | "airport-related purposes" has the meaning ascribed in Section | ||||||
| 23 | 6z-20.2 of the State Finance Act. This exclusion for aviation | ||||||
| 24 | fuel only applies for so long as the revenue use requirements | ||||||
| 25 | of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the | ||||||
| 26 | District. | ||||||
| |||||||
| |||||||
| 1 | The tax imposed under this paragraph and all civil | ||||||
| 2 | penalties that may be assessed as an incident thereof shall be | ||||||
| 3 | collected and enforced by the State Department of Revenue. The | ||||||
| 4 | Department shall have full power to administer and enforce | ||||||
| 5 | this paragraph; to collect all taxes and penalties due | ||||||
| 6 | hereunder; to dispose of taxes and penalties so collected in | ||||||
| 7 | the manner hereinafter provided; and to determine all rights | ||||||
| 8 | to credit memoranda arising on account of the erroneous | ||||||
| 9 | payment of tax or penalty hereunder. In the administration of, | ||||||
| 10 | and compliance with this paragraph, the Department and persons | ||||||
| 11 | who are subject to this paragraph shall have the same rights, | ||||||
| 12 | remedies, privileges, immunities, powers and duties, and be | ||||||
| 13 | subject to the same conditions, restrictions, limitations, | ||||||
| 14 | penalties, exclusions, exemptions and definitions of terms and | ||||||
| 15 | employ the same modes of procedure as are prescribed in | ||||||
| 16 | Sections 1a-1, 2 (except that the reference to State in the | ||||||
| 17 | definition of supplier maintaining a place of business in this | ||||||
| 18 | State shall mean the Authority), 2a, 3 through 3-50 (in | ||||||
| 19 | respect to all provisions therein other than the State rate of | ||||||
| 20 | tax), 4 (except that the reference to the State shall be to the | ||||||
| 21 | Authority), 5, 7, 8 (except that the jurisdiction to which the | ||||||
| 22 | tax shall be a debt to the extent indicated in that Section 8 | ||||||
| 23 | shall be the District), 9 (except as to the disposition of | ||||||
| 24 | taxes and penalties collected, and except that the returned | ||||||
| 25 | merchandise credit for this tax may not be taken against any | ||||||
| 26 | State tax, and except that the retailer's discount is not | ||||||
| |||||||
| |||||||
| 1 | allowed for taxes paid on aviation fuel that are subject to the | ||||||
| 2 | revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. | ||||||
| 3 | 47133), 10, 11, 12 (except the reference therein to Section 2b | ||||||
| 4 | of the Retailers' Occupation Tax Act), 13 (except that any | ||||||
| 5 | reference to the State shall mean the District), the first | ||||||
| 6 | paragraph of Section 15, 16, 17, 18, 19 and 20 of the Service | ||||||
| 7 | Occupation Tax Act and Section 3-7 of the Uniform Penalty and | ||||||
| 8 | Interest Act, as fully as if those provisions were set forth | ||||||
| 9 | herein. | ||||||
| 10 | Persons subject to any tax imposed under the authority | ||||||
| 11 | granted in this paragraph may reimburse themselves for their | ||||||
| 12 | serviceman's tax liability hereunder by separately stating the | ||||||
| 13 | tax as an additional charge, which charge may be stated in | ||||||
| 14 | combination, in a single amount, with State tax that | ||||||
| 15 | servicemen are authorized to collect under the Service Use Tax | ||||||
| 16 | Act, in accordance with such bracket schedules as the | ||||||
| 17 | Department may prescribe. | ||||||
| 18 | Whenever the Department determines that a refund should be | ||||||
| 19 | made under this paragraph to a claimant instead of issuing a | ||||||
| 20 | credit memorandum, the Department shall notify the State | ||||||
| 21 | Comptroller, who shall cause the warrant to be drawn for the | ||||||
| 22 | amount specified, and to the person named, in the notification | ||||||
| 23 | from the Department. The refund shall be paid by the State | ||||||
| 24 | Treasurer out of the Metro East Mass Transit District tax fund | ||||||
| 25 | established under paragraph (h) of this Section or the Local | ||||||
| 26 | Government Aviation Trust Fund, as appropriate. | ||||||
| |||||||
| |||||||
| 1 | Nothing in this paragraph shall be construed to authorize | ||||||
| 2 | the District to impose a tax upon the privilege of engaging in | ||||||
| 3 | any business which under the Constitution of the United States | ||||||
| 4 | may not be made the subject of taxation by the State. | ||||||
| 5 | (d) If a tax has been imposed under subsection (b), a Metro | ||||||
| 6 | East Mass Transit District Use Tax shall also be imposed upon | ||||||
| 7 | the privilege of using, in the district, any item of tangible | ||||||
| 8 | personal property that is purchased outside the district at | ||||||
| 9 | retail from a retailer, and that is titled or registered with | ||||||
| 10 | an agency of this State's government, at a rate of 1/4%, or as | ||||||
| 11 | authorized under subsection (d-5) of this Section, of the | ||||||
| 12 | selling price of the tangible personal property within the | ||||||
| 13 | District, as "selling price" is defined in the Use Tax Act. The | ||||||
| 14 | tax shall be collected from persons whose Illinois address for | ||||||
| 15 | titling or registration purposes is given as being in the | ||||||
| 16 | District. The tax shall be collected by the Department of | ||||||
| 17 | Revenue for the Metro East Mass Transit District. The tax must | ||||||
| 18 | be paid to the State, or an exemption determination must be | ||||||
| 19 | obtained from the Department of Revenue, before the title or | ||||||
| 20 | certificate of registration for the property may be issued. | ||||||
| 21 | The tax or proof of exemption may be transmitted to the | ||||||
| 22 | Department by way of the State agency with which, or the State | ||||||
| 23 | officer with whom, the tangible personal property must be | ||||||
| 24 | titled or registered if the Department and the State agency or | ||||||
| 25 | State officer determine that this procedure will expedite the | ||||||
| 26 | processing of applications for title or registration. | ||||||
| |||||||
| |||||||
| 1 | The Department shall have full power to administer and | ||||||
| 2 | enforce this paragraph; to collect all taxes, penalties and | ||||||
| 3 | interest due hereunder; to dispose of taxes, penalties and | ||||||
| 4 | interest so collected in the manner hereinafter provided; and | ||||||
| 5 | to determine all rights to credit memoranda or refunds arising | ||||||
| 6 | on account of the erroneous payment of tax, penalty or | ||||||
| 7 | interest hereunder. In the administration of, and compliance | ||||||
| 8 | with, this paragraph, the Department and persons who are | ||||||
| 9 | subject to this paragraph shall have the same rights, | ||||||
| 10 | remedies, privileges, immunities, powers and duties, and be | ||||||
| 11 | subject to the same conditions, restrictions, limitations, | ||||||
| 12 | penalties, exclusions, exemptions and definitions of terms and | ||||||
| 13 | employ the same modes of procedure, as are prescribed in | ||||||
| 14 | Sections 2 (except the definition of "retailer maintaining a | ||||||
| 15 | place of business in this State"), 3 through 3-80 (except | ||||||
| 16 | provisions pertaining to the State rate of tax, and except | ||||||
| 17 | provisions concerning collection or refunding of the tax by | ||||||
| 18 | retailers), 4, 11, 12, 12a, 14, 15, 19 (except the portions | ||||||
| 19 | pertaining to claims by retailers and except the last | ||||||
| 20 | paragraph concerning refunds), 20, 21 and 22 of the Use Tax Act | ||||||
| 21 | and Section 3-7 of the Uniform Penalty and Interest Act, that | ||||||
| 22 | are not inconsistent with this paragraph, as fully as if those | ||||||
| 23 | provisions were set forth herein. | ||||||
| 24 | Whenever the Department determines that a refund should be | ||||||
| 25 | made under this paragraph to a claimant instead of issuing a | ||||||
| 26 | credit memorandum, the Department shall notify the State | ||||||
| |||||||
| |||||||
| 1 | Comptroller, who shall cause the order to be drawn for the | ||||||
| 2 | amount specified, and to the person named, in the notification | ||||||
| 3 | from the Department. The refund shall be paid by the State | ||||||
| 4 | Treasurer out of the Metro East Mass Transit District tax fund | ||||||
| 5 | established under paragraph (h) of this Section. | ||||||
| 6 | (d-1) If, on January 1, 2025, a unit of local government | ||||||
| 7 | has in effect a tax under subsections (b), (c), and (d) or if, | ||||||
| 8 | after January 1, 2025, a unit of local government imposes a tax | ||||||
| 9 | under subsections (b), (c), and (d), then that tax applies to | ||||||
| 10 | leases of tangible personal property in effect, entered into, | ||||||
| 11 | or renewed on or after that date in the same manner as the tax | ||||||
| 12 | under this Section and in accordance with the changes made by | ||||||
| 13 | this amendatory Act of the 103rd General Assembly. | ||||||
| 14 | (d-5) (A) The county board of any county participating in | ||||||
| 15 | the Metro East Mass Transit District may authorize, by | ||||||
| 16 | ordinance, a referendum on the question of whether the tax | ||||||
| 17 | rates for the Metro East Mass Transit District Retailers' | ||||||
| 18 | Occupation Tax, the Metro East Mass Transit District Service | ||||||
| 19 | Occupation Tax, and the Metro East Mass Transit District Use | ||||||
| 20 | Tax for the District should be increased from 0.25% to 0.75%. | ||||||
| 21 | Upon adopting the ordinance, the county board shall certify | ||||||
| 22 | the proposition to the proper election officials who shall | ||||||
| 23 | submit the proposition to the voters of the District at the | ||||||
| 24 | next election, in accordance with the general election law. | ||||||
| 25 | The proposition shall be in substantially the following | ||||||
| 26 | form: | ||||||
| |||||||
| |||||||
| 1 | Shall the tax rates for the Metro East Mass Transit | ||||||
| 2 | District Retailers' Occupation Tax, the Metro East Mass | ||||||
| 3 | Transit District Service Occupation Tax, and the Metro | ||||||
| 4 | East Mass Transit District Use Tax be increased from 0.25% | ||||||
| 5 | to 0.75%? | ||||||
| 6 | (B) Two thousand five hundred electors of any Metro East | ||||||
| 7 | Mass Transit District may petition the Chief Judge of the | ||||||
| 8 | Circuit Court, or any judge of that Circuit designated by the | ||||||
| 9 | Chief Judge, in which that District is located to cause to be | ||||||
| 10 | submitted to a vote of the electors the question whether the | ||||||
| 11 | tax rates for the Metro East Mass Transit District Retailers' | ||||||
| 12 | Occupation Tax, the Metro East Mass Transit District Service | ||||||
| 13 | Occupation Tax, and the Metro East Mass Transit District Use | ||||||
| 14 | Tax for the District should be increased from 0.25% to 0.75%. | ||||||
| 15 | Upon submission of such petition the court shall set a | ||||||
| 16 | date not less than 10 nor more than 30 days thereafter for a | ||||||
| 17 | hearing on the sufficiency thereof. Notice of the filing of | ||||||
| 18 | such petition and of such date shall be given in writing to the | ||||||
| 19 | District and the County Clerk at least 7 days before the date | ||||||
| 20 | of such hearing. | ||||||
| 21 | If such petition is found sufficient, the court shall | ||||||
| 22 | enter an order to submit that proposition at the next | ||||||
| 23 | election, in accordance with general election law. | ||||||
| 24 | The form of the petition shall be in substantially the | ||||||
| 25 | following form: To the Circuit Court of the County of (name of | ||||||
| 26 | county): | ||||||
| ||||||||||
| ||||||||||
| 1 | We, the undersigned electors of the (name of transit | |||||||||
| 2 | district), respectfully petition your honor to submit to a | |||||||||
| 3 | vote of the electors of (name of transit district) the | |||||||||
| 4 | following proposition: | |||||||||
| 5 | Shall the tax rates for the Metro East Mass Transit | |||||||||
| 6 | District Retailers' Occupation Tax, the Metro East Mass | |||||||||
| 7 | Transit District Service Occupation Tax, and the Metro | |||||||||
| 8 | East Mass Transit District Use Tax be increased from 0.25% | |||||||||
| 9 | to 0.75%? | |||||||||
| 10 | Name Address, with Street and Number. | |||||||||
| ||||||||||
| 13 | (C) The votes shall be recorded as "YES" or "NO". If a | |||||||||
| 14 | majority of all votes cast on the proposition are for the | |||||||||
| 15 | increase in the tax rates, the Metro East Mass Transit | |||||||||
| 16 | District shall begin imposing the increased rates in the | |||||||||
| 17 | District, and the Department of Revenue shall begin collecting | |||||||||
| 18 | the increased amounts, as provided under this Section. An | |||||||||
| 19 | ordinance imposing or discontinuing a tax hereunder or | |||||||||
| 20 | effecting a change in the rate thereof shall be adopted and a | |||||||||
| 21 | certified copy thereof filed with the Department on or before | |||||||||
| 22 | the first day of October, whereupon the Department shall | |||||||||
| 23 | proceed to administer and enforce this Section as of the first | |||||||||
| 24 | day of January next following the adoption and filing, or on or | |||||||||
| 25 | before the first day of April, whereupon the Department shall | |||||||||
| 26 | proceed to administer and enforce this Section as of the first | |||||||||
| |||||||
| |||||||
| 1 | day of July next following the adoption and filing. | ||||||
| 2 | (D) If the voters have approved a referendum under this | ||||||
| 3 | subsection, before November 1, 1994, to increase the tax rate | ||||||
| 4 | under this subsection, the Metro East Mass Transit District | ||||||
| 5 | Board of Trustees may adopt by a majority vote an ordinance at | ||||||
| 6 | any time before January 1, 1995 that excludes from the rate | ||||||
| 7 | increase tangible personal property that is titled or | ||||||
| 8 | registered with an agency of this State's government. The | ||||||
| 9 | ordinance excluding titled or registered tangible personal | ||||||
| 10 | property from the rate increase must be filed with the | ||||||
| 11 | Department at least 15 days before its effective date. At any | ||||||
| 12 | time after adopting an ordinance excluding from the rate | ||||||
| 13 | increase tangible personal property that is titled or | ||||||
| 14 | registered with an agency of this State's government, the | ||||||
| 15 | Metro East Mass Transit District Board of Trustees may adopt | ||||||
| 16 | an ordinance applying the rate increase to that tangible | ||||||
| 17 | personal property. The ordinance shall be adopted, and a | ||||||
| 18 | certified copy of that ordinance shall be filed with the | ||||||
| 19 | Department, on or before October 1, whereupon the Department | ||||||
| 20 | shall proceed to administer and enforce the rate increase | ||||||
| 21 | against tangible personal property titled or registered with | ||||||
| 22 | an agency of this State's government as of the following | ||||||
| 23 | January 1. After December 31, 1995, any reimposed rate | ||||||
| 24 | increase in effect under this subsection shall no longer apply | ||||||
| 25 | to tangible personal property titled or registered with an | ||||||
| 26 | agency of this State's government. Beginning January 1, 1996, | ||||||
| |||||||
| |||||||
| 1 | the Board of Trustees of any Metro East Mass Transit District | ||||||
| 2 | may never reimpose a previously excluded tax rate increase on | ||||||
| 3 | tangible personal property titled or registered with an agency | ||||||
| 4 | of this State's government. After July 1, 2004, if the voters | ||||||
| 5 | have approved a referendum under this subsection to increase | ||||||
| 6 | the tax rate under this subsection, the Metro East Mass | ||||||
| 7 | Transit District Board of Trustees may adopt by a majority | ||||||
| 8 | vote an ordinance that excludes from the rate increase | ||||||
| 9 | tangible personal property that is titled or registered with | ||||||
| 10 | an agency of this State's government. The ordinance excluding | ||||||
| 11 | titled or registered tangible personal property from the rate | ||||||
| 12 | increase shall be adopted, and a certified copy of that | ||||||
| 13 | ordinance shall be filed with the Department on or before | ||||||
| 14 | October 1, whereupon the Department shall administer and | ||||||
| 15 | enforce this exclusion from the rate increase as of the | ||||||
| 16 | following January 1, or on or before April 1, whereupon the | ||||||
| 17 | Department shall administer and enforce this exclusion from | ||||||
| 18 | the rate increase as of the following July 1. The Board of | ||||||
| 19 | Trustees of any Metro East Mass Transit District may never | ||||||
| 20 | reimpose a previously excluded tax rate increase on tangible | ||||||
| 21 | personal property titled or registered with an agency of this | ||||||
| 22 | State's government. | ||||||
| 23 | (d-6) If the Board of Trustees of any Metro East Mass | ||||||
| 24 | Transit District has imposed a rate increase under subsection | ||||||
| 25 | (d-5) and filed an ordinance with the Department of Revenue | ||||||
| 26 | excluding titled property from the higher rate, then that | ||||||
| |||||||
| |||||||
| 1 | Board may, by ordinance adopted with the concurrence of | ||||||
| 2 | two-thirds of the then trustees, impose throughout the | ||||||
| 3 | District a fee. The fee on the excluded property shall not | ||||||
| 4 | exceed $20 per retail transaction or an amount equal to the | ||||||
| 5 | amount of tax excluded, whichever is less, on tangible | ||||||
| 6 | personal property that is titled or registered with an agency | ||||||
| 7 | of this State's government. Beginning July 1, 2004, the fee | ||||||
| 8 | shall apply only to titled property that is subject to either | ||||||
| 9 | the Metro East Mass Transit District Retailers' Occupation Tax | ||||||
| 10 | or the Metro East Mass Transit District Service Occupation | ||||||
| 11 | Tax. No fee shall be imposed or collected under this | ||||||
| 12 | subsection on the sale of a motor vehicle in this State to a | ||||||
| 13 | resident of another state if that motor vehicle will not be | ||||||
| 14 | titled in this State. | ||||||
| 15 | (d-7) Until June 30, 2004, if a fee has been imposed under | ||||||
| 16 | subsection (d-6), a fee shall also be imposed upon the | ||||||
| 17 | privilege of using, in the district, any item of tangible | ||||||
| 18 | personal property that is titled or registered with any agency | ||||||
| 19 | of this State's government, in an amount equal to the amount of | ||||||
| 20 | the fee imposed under subsection (d-6). | ||||||
| 21 | (d-7.1) Beginning July 1, 2004, any fee imposed by the | ||||||
| 22 | Board of Trustees of any Metro East Mass Transit District | ||||||
| 23 | under subsection (d-6) and all civil penalties that may be | ||||||
| 24 | assessed as an incident of the fees shall be collected and | ||||||
| 25 | enforced by the State Department of Revenue. Reference to | ||||||
| 26 | "taxes" in this Section shall be construed to apply to the | ||||||
| |||||||
| |||||||
| 1 | administration, payment, and remittance of all fees under this | ||||||
| 2 | Section. For purposes of any fee imposed under subsection | ||||||
| 3 | (d-6), 4% of the fee, penalty, and interest received by the | ||||||
| 4 | Department in the first 12 months that the fee is collected and | ||||||
| 5 | enforced by the Department and 2% of the fee, penalty, and | ||||||
| 6 | interest following the first 12 months (except the amount | ||||||
| 7 | collected on aviation fuel sold on or after December 1, 2019) | ||||||
| 8 | shall be deposited into the Tax Compliance and Administration | ||||||
| 9 | Fund and shall be used by the Department, subject to | ||||||
| 10 | appropriation, to cover the costs of the Department. No | ||||||
| 11 | retailers' discount shall apply to any fee imposed under | ||||||
| 12 | subsection (d-6). | ||||||
| 13 | (d-8) No item of titled property shall be subject to both | ||||||
| 14 | the higher rate approved by referendum, as authorized under | ||||||
| 15 | subsection (d-5), and any fee imposed under subsection (d-6) | ||||||
| 16 | or (d-7). | ||||||
| 17 | (d-9) (Blank). | ||||||
| 18 | (d-10) (Blank). | ||||||
| 19 | (e) A certificate of registration issued by the State | ||||||
| 20 | Department of Revenue to a retailer under the Retailers' | ||||||
| 21 | Occupation Tax Act or under the Service Occupation Tax Act | ||||||
| 22 | shall permit the registrant to engage in a business that is | ||||||
| 23 | taxed under the tax imposed under paragraphs (b), (c) or (d) of | ||||||
| 24 | this Section and no additional registration shall be required | ||||||
| 25 | under the tax. A certificate issued under the Use Tax Act or | ||||||
| 26 | the Service Use Tax Act shall be applicable with regard to any | ||||||
| |||||||
| |||||||
| 1 | tax imposed under paragraph (c) of this Section. | ||||||
| 2 | (f) (Blank). | ||||||
| 3 | (g) Any ordinance imposing or discontinuing any tax under | ||||||
| 4 | this Section shall be adopted and a certified copy thereof | ||||||
| 5 | filed with the Department on or before June 1, whereupon the | ||||||
| 6 | Department of Revenue shall proceed to administer and enforce | ||||||
| 7 | this Section on behalf of the Metro East Mass Transit District | ||||||
| 8 | as of September 1 next following such adoption and filing. | ||||||
| 9 | Beginning January 1, 1992, an ordinance or resolution imposing | ||||||
| 10 | or discontinuing the tax hereunder shall be adopted and a | ||||||
| 11 | certified copy thereof filed with the Department on or before | ||||||
| 12 | the first day of July, whereupon the Department shall proceed | ||||||
| 13 | to administer and enforce this Section as of the first day of | ||||||
| 14 | October next following such adoption and filing. Beginning | ||||||
| 15 | January 1, 1993, except as provided in subsection (d-5) of | ||||||
| 16 | this Section, an ordinance or resolution imposing or | ||||||
| 17 | discontinuing the tax hereunder shall be adopted and a | ||||||
| 18 | certified copy thereof filed with the Department on or before | ||||||
| 19 | the first day of October, whereupon the Department shall | ||||||
| 20 | proceed to administer and enforce this Section as of the first | ||||||
| 21 | day of January next following such adoption and filing, or, | ||||||
| 22 | beginning January 1, 2004, on or before the first day of April, | ||||||
| 23 | whereupon the Department shall proceed to administer and | ||||||
| 24 | enforce this Section as of the first day of July next following | ||||||
| 25 | the adoption and filing. | ||||||
| 26 | (h) Except as provided in subsection (d-7.1), the State | ||||||
| |||||||
| |||||||
| 1 | Department of Revenue shall, upon collecting any taxes as | ||||||
| 2 | provided in this Section, pay the taxes over to the State | ||||||
| 3 | Treasurer as trustee for the District. The taxes shall be held | ||||||
| 4 | in a trust fund outside the State Treasury. If an | ||||||
| 5 | airport-related purpose has been certified, taxes and | ||||||
| 6 | penalties collected in St. Clair County on aviation fuel sold | ||||||
| 7 | on or after December 1, 2019 from the 0.50% of the 0.75% rate | ||||||
| 8 | shall be immediately paid over by the Department to the State | ||||||
| 9 | Treasurer, ex officio, as trustee, for deposit into the Local | ||||||
| 10 | Government Aviation Trust Fund. The Department shall only pay | ||||||
| 11 | moneys into the Local Government Aviation Trust Fund under | ||||||
| 12 | this Act for so long as the revenue use requirements of 49 | ||||||
| 13 | U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the | ||||||
| 14 | District. | ||||||
| 15 | As soon as possible after the first day of each month, | ||||||
| 16 | beginning January 1, 2011, upon certification of the | ||||||
| 17 | Department of Revenue, the Comptroller shall order | ||||||
| 18 | transferred, and the Treasurer shall transfer, to the STAR | ||||||
| 19 | Bonds Revenue Fund the local sales tax increment, as defined | ||||||
| 20 | in the Innovation Development and Economy Act, collected under | ||||||
| 21 | this Section during the second preceding calendar month for | ||||||
| 22 | sales within a STAR bond district. The Department shall make | ||||||
| 23 | this certification only if the local mass transit district | ||||||
| 24 | imposes a tax on real property as provided in the definition of | ||||||
| 25 | "local sales taxes" under the Innovation Development and | ||||||
| 26 | Economy Act. | ||||||
| |||||||
| |||||||
| 1 | After the monthly transfer to the STAR Bonds Revenue Fund, | ||||||
| 2 | on or before the 25th day of each calendar month, the State | ||||||
| 3 | Department of Revenue shall prepare and certify to the | ||||||
| 4 | Comptroller of the State of Illinois the amount to be paid to | ||||||
| 5 | the District, which shall be the amount (not including credit | ||||||
| 6 | memoranda and not including taxes and penalties collected on | ||||||
| 7 | aviation fuel sold on or after December 1, 2019 that are | ||||||
| 8 | deposited into the Local Government Aviation Trust Fund) | ||||||
| 9 | collected under this Section during the second preceding | ||||||
| 10 | calendar month by the Department plus an amount the Department | ||||||
| 11 | determines is necessary to offset any amounts that were | ||||||
| 12 | erroneously paid to a different taxing body, and not including | ||||||
| 13 | any amount equal to the amount of refunds made during the | ||||||
| 14 | second preceding calendar month by the Department on behalf of | ||||||
| 15 | the District, and not including any amount that the Department | ||||||
| 16 | determines is necessary to offset any amounts that were | ||||||
| 17 | payable to a different taxing body but were erroneously paid | ||||||
| 18 | to the District, and less any amounts that are transferred to | ||||||
| 19 | the STAR Bonds Revenue Fund, less 1.5% of the remainder, which | ||||||
| 20 | the Department shall transfer into the Tax Compliance and | ||||||
| 21 | Administration Fund. The Department, at the time of each | ||||||
| 22 | monthly disbursement to the District, shall prepare and | ||||||
| 23 | certify to the State Comptroller the amount to be transferred | ||||||
| 24 | into the Tax Compliance and Administration Fund under this | ||||||
| 25 | subsection. Within 10 days after receipt by the Comptroller of | ||||||
| 26 | the certification of the amount to be paid to the District and | ||||||
| |||||||
| |||||||
| 1 | the Tax Compliance and Administration Fund, the Comptroller | ||||||
| 2 | shall cause an order to be drawn for payment for the amount in | ||||||
| 3 | accordance with the direction in the certification. | ||||||
| 4 | (Source: P.A. 100-23, eff. 7-6-17; 100-587, eff. 6-4-18; | ||||||
| 5 | 101-10, eff. 6-5-19; 101-604, eff. 12-13-19.)
| ||||||
| 6 | Section 75-60. The Regional Transportation Authority Act | ||||||
| 7 | is amended by changing Section 4.03 as follows:
| ||||||
| 8 | (70 ILCS 3615/4.03) (from Ch. 111 2/3, par. 704.03) | ||||||
| 9 | Sec. 4.03. Taxes. | ||||||
| 10 | (a) In order to carry out any of the powers or purposes of | ||||||
| 11 | the Authority, the Board may by ordinance adopted with the | ||||||
| 12 | concurrence of 12 of the then Directors, impose throughout the | ||||||
| 13 | metropolitan region any or all of the taxes provided in this | ||||||
| 14 | Section. Except as otherwise provided in this Act, taxes | ||||||
| 15 | imposed under this Section and civil penalties imposed | ||||||
| 16 | incident thereto shall be collected and enforced by the State | ||||||
| 17 | Department of Revenue. The Department shall have the power to | ||||||
| 18 | administer and enforce the taxes and to determine all rights | ||||||
| 19 | for refunds for erroneous payments of the taxes. Nothing in | ||||||
| 20 | Public Act 95-708 is intended to invalidate any taxes | ||||||
| 21 | currently imposed by the Authority. The increased vote | ||||||
| 22 | requirements to impose a tax shall only apply to actions taken | ||||||
| 23 | after January 1, 2008 (the effective date of Public Act | ||||||
| 24 | 95-708). | ||||||
| |||||||
| |||||||
| 1 | (b) The Board may impose a public transportation tax upon | ||||||
| 2 | all persons engaged in the metropolitan region in the business | ||||||
| 3 | of selling at retail motor fuel for operation of motor | ||||||
| 4 | vehicles upon public highways. The tax shall be at a rate not | ||||||
| 5 | to exceed 5% of the gross receipts from the sales of motor fuel | ||||||
| 6 | in the course of the business. As used in this Act, the term | ||||||
| 7 | "motor fuel" shall have the same meaning as in the Motor Fuel | ||||||
| 8 | Tax Law. The Board may provide for details of the tax. The | ||||||
| 9 | provisions of any tax shall conform, as closely as may be | ||||||
| 10 | practicable, to the provisions of the Municipal Retailers | ||||||
| 11 | Occupation Tax Act, including without limitation, conformity | ||||||
| 12 | to penalties with respect to the tax imposed and as to the | ||||||
| 13 | powers of the State Department of Revenue to promulgate and | ||||||
| 14 | enforce rules and regulations relating to the administration | ||||||
| 15 | and enforcement of the provisions of the tax imposed, except | ||||||
| 16 | that reference in the Act to any municipality shall refer to | ||||||
| 17 | the Authority and the tax shall be imposed only with regard to | ||||||
| 18 | receipts from sales of motor fuel in the metropolitan region, | ||||||
| 19 | at rates as limited by this Section. | ||||||
| 20 | (c) In connection with the tax imposed under paragraph (b) | ||||||
| 21 | of this Section, the Board may impose a tax upon the privilege | ||||||
| 22 | of using in the metropolitan region motor fuel for the | ||||||
| 23 | operation of a motor vehicle upon public highways, the tax to | ||||||
| 24 | be at a rate not in excess of the rate of tax imposed under | ||||||
| 25 | paragraph (b) of this Section. The Board may provide for | ||||||
| 26 | details of the tax. | ||||||
| |||||||
| |||||||
| 1 | (d) The Board may impose a motor vehicle parking tax upon | ||||||
| 2 | the privilege of parking motor vehicles at off-street parking | ||||||
| 3 | facilities in the metropolitan region at which a fee is | ||||||
| 4 | charged, and may provide for reasonable classifications in and | ||||||
| 5 | exemptions to the tax, for administration and enforcement | ||||||
| 6 | thereof and for civil penalties and refunds thereunder and may | ||||||
| 7 | provide criminal penalties thereunder, the maximum penalties | ||||||
| 8 | not to exceed the maximum criminal penalties provided in the | ||||||
| 9 | Retailers' Occupation Tax Act. The Authority may collect and | ||||||
| 10 | enforce the tax itself or by contract with any unit of local | ||||||
| 11 | government. The State Department of Revenue shall have no | ||||||
| 12 | responsibility for the collection and enforcement unless the | ||||||
| 13 | Department agrees with the Authority to undertake the | ||||||
| 14 | collection and enforcement. As used in this paragraph, the | ||||||
| 15 | term "parking facility" means a parking area or structure | ||||||
| 16 | having parking spaces for more than 2 vehicles at which motor | ||||||
| 17 | vehicles are permitted to park in return for an hourly, daily, | ||||||
| 18 | or other periodic fee, whether publicly or privately owned, | ||||||
| 19 | but does not include parking spaces on a public street, the use | ||||||
| 20 | of which is regulated by parking meters. | ||||||
| 21 | (e) The Board may impose a Regional Transportation | ||||||
| 22 | Authority Retailers' Occupation Tax upon all persons engaged | ||||||
| 23 | in the business of selling tangible personal property at | ||||||
| 24 | retail in the metropolitan region. In Cook County, the tax | ||||||
| 25 | rate shall be 1.25% of the gross receipts from sales of | ||||||
| 26 | tangible personal property taxed at the 1% rate under the | ||||||
| |||||||
| |||||||
| 1 | Retailers' Occupation Tax Act (or at the 0% rate imposed under | ||||||
| 2 | this amendatory Act of the 102nd General Assembly), and 1% of | ||||||
| 3 | the gross receipts from other taxable sales made in the course | ||||||
| 4 | of that business. In DuPage, Kane, Lake, McHenry, and Will | ||||||
| 5 | counties, the tax rate shall be 0.75% of the gross receipts | ||||||
| 6 | from all taxable sales made in the course of that business. The | ||||||
| 7 | rate of tax imposed in DuPage, Kane, Lake, McHenry, and Will | ||||||
| 8 | counties under this Section on sales of aviation fuel on or | ||||||
| 9 | after December 1, 2019 shall, however, be 0.25% unless the | ||||||
| 10 | Regional Transportation Authority in DuPage, Kane, Lake, | ||||||
| 11 | McHenry, and Will counties has an "airport-related purpose" | ||||||
| 12 | and the additional 0.50% of the 0.75% tax on aviation fuel is | ||||||
| 13 | expended for airport-related purposes. If there is no | ||||||
| 14 | airport-related purpose to which aviation fuel tax revenue is | ||||||
| 15 | dedicated, then aviation fuel is excluded from the additional | ||||||
| 16 | 0.50% of the 0.75% tax. The tax imposed under this Section and | ||||||
| 17 | all civil penalties that may be assessed as an incident | ||||||
| 18 | thereof shall be collected and enforced by the State | ||||||
| 19 | Department of Revenue. The Department shall have full power to | ||||||
| 20 | administer and enforce this Section; to collect all taxes and | ||||||
| 21 | penalties so collected in the manner hereinafter provided; and | ||||||
| 22 | to determine all rights to credit memoranda arising on account | ||||||
| 23 | of the erroneous payment of tax or penalty hereunder. In the | ||||||
| 24 | administration of, and compliance with this Section, the | ||||||
| 25 | Department and persons who are subject to this Section shall | ||||||
| 26 | have the same rights, remedies, privileges, immunities, | ||||||
| |||||||
| |||||||
| 1 | powers, and duties, and be subject to the same conditions, | ||||||
| 2 | restrictions, limitations, penalties, exclusions, exemptions, | ||||||
| 3 | and definitions of terms, and employ the same modes of | ||||||
| 4 | procedure, as are prescribed in Sections 1, 1a, 1a-1, 1c, 1d, | ||||||
| 5 | 1e, 1f, 1i, 1j, 2 through 2-65 (in respect to all provisions | ||||||
| 6 | therein other than the State rate of tax), 2c, 3 (except as to | ||||||
| 7 | the disposition of taxes and penalties collected, and except | ||||||
| 8 | that the retailer's discount is not allowed for taxes paid on | ||||||
| 9 | aviation fuel that are subject to the revenue use requirements | ||||||
| 10 | of 49 U.S.C. 47107(b) and 49 U.S.C. 47133), 4, 5, 5a, 5b, 5c, | ||||||
| 11 | 5d, 5e, 5f, 5g, 5h, 5i, 5j, 5k, 5l, 6, 6a, 6b, 6c, 6d, 7, 8, 9, | ||||||
| 12 | 10, 11, 12, and 13 of the Retailers' Occupation Tax Act and | ||||||
| 13 | Section 3-7 of the Uniform Penalty and Interest Act, as fully | ||||||
| 14 | as if those provisions were set forth herein. | ||||||
| 15 | The Board and DuPage, Kane, Lake, McHenry, and Will | ||||||
| 16 | counties must comply with the certification requirements for | ||||||
| 17 | airport-related purposes under Section 2-22 of the Retailers' | ||||||
| 18 | Occupation Tax Act. For purposes of this Section, | ||||||
| 19 | "airport-related purposes" has the meaning ascribed in Section | ||||||
| 20 | 6z-20.2 of the State Finance Act. This exclusion for aviation | ||||||
| 21 | fuel only applies for so long as the revenue use requirements | ||||||
| 22 | of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the | ||||||
| 23 | Authority. | ||||||
| 24 | Persons subject to any tax imposed under the authority | ||||||
| 25 | granted in this Section may reimburse themselves for their | ||||||
| 26 | seller's tax liability hereunder by separately stating the tax | ||||||
| |||||||
| |||||||
| 1 | as an additional charge, which charge may be stated in | ||||||
| 2 | combination in a single amount with State taxes that sellers | ||||||
| 3 | are required to collect under the Use Tax Act, under any | ||||||
| 4 | bracket schedules the Department may prescribe. | ||||||
| 5 | Whenever the Department determines that a refund should be | ||||||
| 6 | made under this Section to a claimant instead of issuing a | ||||||
| 7 | credit memorandum, the Department shall notify the State | ||||||
| 8 | Comptroller, who shall cause the warrant to be drawn for the | ||||||
| 9 | amount specified, and to the person named, in the notification | ||||||
| 10 | from the Department. The refund shall be paid by the State | ||||||
| 11 | Treasurer out of the Regional Transportation Authority tax | ||||||
| 12 | fund established under paragraph (n) of this Section or the | ||||||
| 13 | Local Government Aviation Trust Fund, as appropriate. | ||||||
| 14 | If a tax is imposed under this subsection (e), a tax shall | ||||||
| 15 | also be imposed under subsections (f) and (g) of this Section. | ||||||
| 16 | For the purpose of determining whether a tax authorized | ||||||
| 17 | under this Section is applicable, a retail sale by a producer | ||||||
| 18 | of coal or other mineral mined in Illinois, is a sale at retail | ||||||
| 19 | at the place where the coal or other mineral mined in Illinois | ||||||
| 20 | is extracted from the earth. This paragraph does not apply to | ||||||
| 21 | coal or other mineral when it is delivered or shipped by the | ||||||
| 22 | seller to the purchaser at a point outside Illinois so that the | ||||||
| 23 | sale is exempt under the Federal Constitution as a sale in | ||||||
| 24 | interstate or foreign commerce. | ||||||
| 25 | No tax shall be imposed or collected under this subsection | ||||||
| 26 | on the sale of a motor vehicle in this State to a resident of | ||||||
| |||||||
| |||||||
| 1 | another state if that motor vehicle will not be titled in this | ||||||
| 2 | State. | ||||||
| 3 | Nothing in this Section shall be construed to authorize | ||||||
| 4 | the Regional Transportation Authority to impose a tax upon the | ||||||
| 5 | privilege of engaging in any business that under the | ||||||
| 6 | Constitution of the United States may not be made the subject | ||||||
| 7 | of taxation by this State. | ||||||
| 8 | (f) If a tax has been imposed under paragraph (e), a | ||||||
| 9 | Regional Transportation Authority Service Occupation Tax shall | ||||||
| 10 | also be imposed upon all persons engaged, in the metropolitan | ||||||
| 11 | region in the business of making sales of service, who as an | ||||||
| 12 | incident to making the sales of service, transfer tangible | ||||||
| 13 | personal property within the metropolitan region, either in | ||||||
| 14 | the form of tangible personal property or in the form of real | ||||||
| 15 | estate as an incident to a sale of service. In Cook County, the | ||||||
| 16 | tax rate shall be: (1) 1.25% of the serviceman's cost price of | ||||||
| 17 | food prepared for immediate consumption and transferred | ||||||
| 18 | incident to a sale of service subject to the service | ||||||
| 19 | occupation tax by an entity licensed under the Hospital | ||||||
| 20 | Licensing Act, the Nursing Home Care Act, the Specialized | ||||||
| 21 | Mental Health Rehabilitation Act of 2013, the ID/DD Community | ||||||
| 22 | Care Act, or the MC/DD Act that is located in the metropolitan | ||||||
| 23 | region; (2) 1.25% of the selling price of tangible personal | ||||||
| 24 | property taxed at the 1% rate under the Service Occupation Tax | ||||||
| 25 | Act (or at the 0% rate imposed under this amendatory Act of the | ||||||
| 26 | 102nd General Assembly); and (3) 1% of the selling price from | ||||||
| |||||||
| |||||||
| 1 | other taxable sales of tangible personal property transferred. | ||||||
| 2 | In DuPage, Kane, Lake, McHenry, and Will counties, the rate | ||||||
| 3 | shall be 0.75% of the selling price of all tangible personal | ||||||
| 4 | property transferred. The rate of tax imposed in DuPage, Kane, | ||||||
| 5 | Lake, McHenry, and Will counties under this Section on sales | ||||||
| 6 | of aviation fuel on or after December 1, 2019 shall, however, | ||||||
| 7 | be 0.25% unless the Regional Transportation Authority in | ||||||
| 8 | DuPage, Kane, Lake, McHenry, and Will counties has an | ||||||
| 9 | "airport-related purpose" and the additional 0.50% of the | ||||||
| 10 | 0.75% tax on aviation fuel is expended for airport-related | ||||||
| 11 | purposes. If there is no airport-related purpose to which | ||||||
| 12 | aviation fuel tax revenue is dedicated, then aviation fuel is | ||||||
| 13 | excluded from the additional 0.5% of the 0.75% tax. | ||||||
| 14 | The Board and DuPage, Kane, Lake, McHenry, and Will | ||||||
| 15 | counties must comply with the certification requirements for | ||||||
| 16 | airport-related purposes under Section 2-22 of the Retailers' | ||||||
| 17 | Occupation Tax Act. For purposes of this Section, | ||||||
| 18 | "airport-related purposes" has the meaning ascribed in Section | ||||||
| 19 | 6z-20.2 of the State Finance Act. This exclusion for aviation | ||||||
| 20 | fuel only applies for so long as the revenue use requirements | ||||||
| 21 | of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the | ||||||
| 22 | Authority. | ||||||
| 23 | The tax imposed under this paragraph and all civil | ||||||
| 24 | penalties that may be assessed as an incident thereof shall be | ||||||
| 25 | collected and enforced by the State Department of Revenue. The | ||||||
| 26 | Department shall have full power to administer and enforce | ||||||
| |||||||
| |||||||
| 1 | this paragraph; to collect all taxes and penalties due | ||||||
| 2 | hereunder; to dispose of taxes and penalties collected in the | ||||||
| 3 | manner hereinafter provided; and to determine all rights to | ||||||
| 4 | credit memoranda arising on account of the erroneous payment | ||||||
| 5 | of tax or penalty hereunder. In the administration of and | ||||||
| 6 | compliance with this paragraph, the Department and persons who | ||||||
| 7 | are subject to this paragraph shall have the same rights, | ||||||
| 8 | remedies, privileges, immunities, powers, and duties, and be | ||||||
| 9 | subject to the same conditions, restrictions, limitations, | ||||||
| 10 | penalties, exclusions, exemptions, and definitions of terms, | ||||||
| 11 | and employ the same modes of procedure, as are prescribed in | ||||||
| 12 | Sections 1a-1, 2, 2a, 3 through 3-50 (in respect to all | ||||||
| 13 | provisions therein other than the State rate of tax), 4 | ||||||
| 14 | (except that the reference to the State shall be to the | ||||||
| 15 | Authority), 5, 7, 8 (except that the jurisdiction to which the | ||||||
| 16 | tax shall be a debt to the extent indicated in that Section 8 | ||||||
| 17 | shall be the Authority), 9 (except as to the disposition of | ||||||
| 18 | taxes and penalties collected, and except that the returned | ||||||
| 19 | merchandise credit for this tax may not be taken against any | ||||||
| 20 | State tax, and except that the retailer's discount is not | ||||||
| 21 | allowed for taxes paid on aviation fuel that are subject to the | ||||||
| 22 | revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. | ||||||
| 23 | 47133), 10, 11, 12 (except the reference therein to Section 2b | ||||||
| 24 | of the Retailers' Occupation Tax Act), 13 (except that any | ||||||
| 25 | reference to the State shall mean the Authority), the first | ||||||
| 26 | paragraph of Section 15, 16, 17, 18, 19, and 20 of the Service | ||||||
| |||||||
| |||||||
| 1 | Occupation Tax Act and Section 3-7 of the Uniform Penalty and | ||||||
| 2 | Interest Act, as fully as if those provisions were set forth | ||||||
| 3 | herein. | ||||||
| 4 | Persons subject to any tax imposed under the authority | ||||||
| 5 | granted in this paragraph may reimburse themselves for their | ||||||
| 6 | serviceman's tax liability hereunder by separately stating the | ||||||
| 7 | tax as an additional charge, that charge may be stated in | ||||||
| 8 | combination in a single amount with State tax that servicemen | ||||||
| 9 | are authorized to collect under the Service Use Tax Act, under | ||||||
| 10 | any bracket schedules the Department may prescribe. | ||||||
| 11 | Whenever the Department determines that a refund should be | ||||||
| 12 | made under this paragraph to a claimant instead of issuing a | ||||||
| 13 | credit memorandum, the Department shall notify the State | ||||||
| 14 | Comptroller, who shall cause the warrant to be drawn for the | ||||||
| 15 | amount specified, and to the person named in the notification | ||||||
| 16 | from the Department. The refund shall be paid by the State | ||||||
| 17 | Treasurer out of the Regional Transportation Authority tax | ||||||
| 18 | fund established under paragraph (n) of this Section or the | ||||||
| 19 | Local Government Aviation Trust Fund, as appropriate. | ||||||
| 20 | Nothing in this paragraph shall be construed to authorize | ||||||
| 21 | the Authority to impose a tax upon the privilege of engaging in | ||||||
| 22 | any business that under the Constitution of the United States | ||||||
| 23 | may not be made the subject of taxation by the State. | ||||||
| 24 | (g) If a tax has been imposed under paragraph (e), a tax | ||||||
| 25 | shall also be imposed upon the privilege of using in the | ||||||
| 26 | metropolitan region, any item of tangible personal property | ||||||
| |||||||
| |||||||
| 1 | that is purchased outside the metropolitan region at retail | ||||||
| 2 | from a retailer, and that is titled or registered with an | ||||||
| 3 | agency of this State's government. In Cook County, the tax | ||||||
| 4 | rate shall be 1% of the selling price of the tangible personal | ||||||
| 5 | property, as "selling price" is defined in the Use Tax Act. In | ||||||
| 6 | DuPage, Kane, Lake, McHenry, and Will counties, the tax rate | ||||||
| 7 | shall be 0.75% of the selling price of the tangible personal | ||||||
| 8 | property, as "selling price" is defined in the Use Tax Act. The | ||||||
| 9 | tax shall be collected from persons whose Illinois address for | ||||||
| 10 | titling or registration purposes is given as being in the | ||||||
| 11 | metropolitan region. The tax shall be collected by the | ||||||
| 12 | Department of Revenue for the Regional Transportation | ||||||
| 13 | Authority. The tax must be paid to the State, or an exemption | ||||||
| 14 | determination must be obtained from the Department of Revenue, | ||||||
| 15 | before the title or certificate of registration for the | ||||||
| 16 | property may be issued. The tax or proof of exemption may be | ||||||
| 17 | transmitted to the Department by way of the State agency with | ||||||
| 18 | which, or the State officer with whom, the tangible personal | ||||||
| 19 | property must be titled or registered if the Department and | ||||||
| 20 | the State agency or State officer determine that this | ||||||
| 21 | procedure will expedite the processing of applications for | ||||||
| 22 | title or registration. | ||||||
| 23 | The Department shall have full power to administer and | ||||||
| 24 | enforce this paragraph; to collect all taxes, penalties, and | ||||||
| 25 | interest due hereunder; to dispose of taxes, penalties, and | ||||||
| 26 | interest collected in the manner hereinafter provided; and to | ||||||
| |||||||
| |||||||
| 1 | determine all rights to credit memoranda or refunds arising on | ||||||
| 2 | account of the erroneous payment of tax, penalty, or interest | ||||||
| 3 | hereunder. In the administration of and compliance with this | ||||||
| 4 | paragraph, the Department and persons who are subject to this | ||||||
| 5 | paragraph shall have the same rights, remedies, privileges, | ||||||
| 6 | immunities, powers, and duties, and be subject to the same | ||||||
| 7 | conditions, restrictions, limitations, penalties, exclusions, | ||||||
| 8 | exemptions, and definitions of terms and employ the same modes | ||||||
| 9 | of procedure, as are prescribed in Sections 2 (except the | ||||||
| 10 | definition of "retailer maintaining a place of business in | ||||||
| 11 | this State"), 3 through 3-80 (except provisions pertaining to | ||||||
| 12 | the State rate of tax, and except provisions concerning | ||||||
| 13 | collection or refunding of the tax by retailers), 4, 11, 12, | ||||||
| 14 | 12a, 14, 15, 19 (except the portions pertaining to claims by | ||||||
| 15 | retailers and except the last paragraph concerning refunds), | ||||||
| 16 | 20, 21, and 22 of the Use Tax Act, and are not inconsistent | ||||||
| 17 | with this paragraph, as fully as if those provisions were set | ||||||
| 18 | forth herein. | ||||||
| 19 | Whenever the Department determines that a refund should be | ||||||
| 20 | made under this paragraph to a claimant instead of issuing a | ||||||
| 21 | credit memorandum, the Department shall notify the State | ||||||
| 22 | Comptroller, who shall cause the order to be drawn for the | ||||||
| 23 | amount specified, and to the person named in the notification | ||||||
| 24 | from the Department. The refund shall be paid by the State | ||||||
| 25 | Treasurer out of the Regional Transportation Authority tax | ||||||
| 26 | fund established under paragraph (n) of this Section. | ||||||
| |||||||
| |||||||
| 1 | (g-5) If, on January 1, 2025, a unit of local government | ||||||
| 2 | has in effect a tax under subsections (e), (f), and (g), or if, | ||||||
| 3 | after January 1, 2025, a unit of local government imposes a tax | ||||||
| 4 | under subsections (e), (f), and (g), then that tax applies to | ||||||
| 5 | leases of tangible personal property in effect, entered into, | ||||||
| 6 | or renewed on or after that date in the same manner as the tax | ||||||
| 7 | under this Section and in accordance with the changes made by | ||||||
| 8 | this amendatory Act of the 103rd General Assembly. | ||||||
| 9 | (h) The Authority may impose a replacement vehicle tax of | ||||||
| 10 | $50 on any passenger car as defined in Section 1-157 of the | ||||||
| 11 | Illinois Vehicle Code purchased within the metropolitan region | ||||||
| 12 | by or on behalf of an insurance company to replace a passenger | ||||||
| 13 | car of an insured person in settlement of a total loss claim. | ||||||
| 14 | The tax imposed may not become effective before the first day | ||||||
| 15 | of the month following the passage of the ordinance imposing | ||||||
| 16 | the tax and receipt of a certified copy of the ordinance by the | ||||||
| 17 | Department of Revenue. The Department of Revenue shall collect | ||||||
| 18 | the tax for the Authority in accordance with Sections 3-2002 | ||||||
| 19 | and 3-2003 of the Illinois Vehicle Code. | ||||||
| 20 | The Department shall immediately pay over to the State | ||||||
| 21 | Treasurer, ex officio, as trustee, all taxes collected | ||||||
| 22 | hereunder. | ||||||
| 23 | As soon as possible after the first day of each month, | ||||||
| 24 | beginning January 1, 2011, upon certification of the | ||||||
| 25 | Department of Revenue, the Comptroller shall order | ||||||
| 26 | transferred, and the Treasurer shall transfer, to the STAR | ||||||
| |||||||
| |||||||
| 1 | Bonds Revenue Fund the local sales tax increment, as defined | ||||||
| 2 | in the Innovation Development and Economy Act, collected under | ||||||
| 3 | this Section during the second preceding calendar month for | ||||||
| 4 | sales within a STAR bond district. | ||||||
| 5 | After the monthly transfer to the STAR Bonds Revenue Fund, | ||||||
| 6 | on or before the 25th day of each calendar month, the | ||||||
| 7 | Department shall prepare and certify to the Comptroller the | ||||||
| 8 | disbursement of stated sums of money to the Authority. The | ||||||
| 9 | amount to be paid to the Authority shall be the amount | ||||||
| 10 | collected hereunder during the second preceding calendar month | ||||||
| 11 | by the Department, less any amount determined by the | ||||||
| 12 | Department to be necessary for the payment of refunds, and | ||||||
| 13 | less any amounts that are transferred to the STAR Bonds | ||||||
| 14 | Revenue Fund. Within 10 days after receipt by the Comptroller | ||||||
| 15 | of the disbursement certification to the Authority provided | ||||||
| 16 | for in this Section to be given to the Comptroller by the | ||||||
| 17 | Department, the Comptroller shall cause the orders to be drawn | ||||||
| 18 | for that amount in accordance with the directions contained in | ||||||
| 19 | the certification. | ||||||
| 20 | (i) The Board may not impose any other taxes except as it | ||||||
| 21 | may from time to time be authorized by law to impose. | ||||||
| 22 | (j) A certificate of registration issued by the State | ||||||
| 23 | Department of Revenue to a retailer under the Retailers' | ||||||
| 24 | Occupation Tax Act or under the Service Occupation Tax Act | ||||||
| 25 | shall permit the registrant to engage in a business that is | ||||||
| 26 | taxed under the tax imposed under paragraphs (b), (e), (f) or | ||||||
| |||||||
| |||||||
| 1 | (g) of this Section and no additional registration shall be | ||||||
| 2 | required under the tax. A certificate issued under the Use Tax | ||||||
| 3 | Act or the Service Use Tax Act shall be applicable with regard | ||||||
| 4 | to any tax imposed under paragraph (c) of this Section. | ||||||
| 5 | (k) The provisions of any tax imposed under paragraph (c) | ||||||
| 6 | of this Section shall conform as closely as may be practicable | ||||||
| 7 | to the provisions of the Use Tax Act, including without | ||||||
| 8 | limitation conformity as to penalties with respect to the tax | ||||||
| 9 | imposed and as to the powers of the State Department of Revenue | ||||||
| 10 | to promulgate and enforce rules and regulations relating to | ||||||
| 11 | the administration and enforcement of the provisions of the | ||||||
| 12 | tax imposed. The taxes shall be imposed only on use within the | ||||||
| 13 | metropolitan region and at rates as provided in the paragraph. | ||||||
| 14 | (l) The Board in imposing any tax as provided in | ||||||
| 15 | paragraphs (b) and (c) of this Section, shall, after seeking | ||||||
| 16 | the advice of the State Department of Revenue, provide means | ||||||
| 17 | for retailers, users or purchasers of motor fuel for purposes | ||||||
| 18 | other than those with regard to which the taxes may be imposed | ||||||
| 19 | as provided in those paragraphs to receive refunds of taxes | ||||||
| 20 | improperly paid, which provisions may be at variance with the | ||||||
| 21 | refund provisions as applicable under the Municipal Retailers | ||||||
| 22 | Occupation Tax Act. The State Department of Revenue may | ||||||
| 23 | provide for certificates of registration for users or | ||||||
| 24 | purchasers of motor fuel for purposes other than those with | ||||||
| 25 | regard to which taxes may be imposed as provided in paragraphs | ||||||
| 26 | (b) and (c) of this Section to facilitate the reporting and | ||||||
| |||||||
| |||||||
| 1 | nontaxability of the exempt sales or uses. | ||||||
| 2 | (m) Any ordinance imposing or discontinuing any tax under | ||||||
| 3 | this Section shall be adopted and a certified copy thereof | ||||||
| 4 | filed with the Department on or before June 1, whereupon the | ||||||
| 5 | Department of Revenue shall proceed to administer and enforce | ||||||
| 6 | this Section on behalf of the Regional Transportation | ||||||
| 7 | Authority as of September 1 next following such adoption and | ||||||
| 8 | filing. Beginning January 1, 1992, an ordinance or resolution | ||||||
| 9 | imposing or discontinuing the tax hereunder shall be adopted | ||||||
| 10 | and a certified copy thereof filed with the Department on or | ||||||
| 11 | before the first day of July, whereupon the Department shall | ||||||
| 12 | proceed to administer and enforce this Section as of the first | ||||||
| 13 | day of October next following such adoption and filing. | ||||||
| 14 | Beginning January 1, 1993, an ordinance or resolution | ||||||
| 15 | imposing, increasing, decreasing, or discontinuing the tax | ||||||
| 16 | hereunder shall be adopted and a certified copy thereof filed | ||||||
| 17 | with the Department, whereupon the Department shall proceed to | ||||||
| 18 | administer and enforce this Section as of the first day of the | ||||||
| 19 | first month to occur not less than 60 days following such | ||||||
| 20 | adoption and filing. Any ordinance or resolution of the | ||||||
| 21 | Authority imposing a tax under this Section and in effect on | ||||||
| 22 | August 1, 2007 shall remain in full force and effect and shall | ||||||
| 23 | be administered by the Department of Revenue under the terms | ||||||
| 24 | and conditions and rates of tax established by such ordinance | ||||||
| 25 | or resolution until the Department begins administering and | ||||||
| 26 | enforcing an increased tax under this Section as authorized by | ||||||
| |||||||
| |||||||
| 1 | Public Act 95-708. The tax rates authorized by Public Act | ||||||
| 2 | 95-708 are effective only if imposed by ordinance of the | ||||||
| 3 | Authority. | ||||||
| 4 | (n) Except as otherwise provided in this subsection (n), | ||||||
| 5 | the State Department of Revenue shall, upon collecting any | ||||||
| 6 | taxes as provided in this Section, pay the taxes over to the | ||||||
| 7 | State Treasurer as trustee for the Authority. The taxes shall | ||||||
| 8 | be held in a trust fund outside the State Treasury. If an | ||||||
| 9 | airport-related purpose has been certified, taxes and | ||||||
| 10 | penalties collected in DuPage, Kane, Lake, McHenry and Will | ||||||
| 11 | counties on aviation fuel sold on or after December 1, 2019 | ||||||
| 12 | from the 0.50% of the 0.75% rate shall be immediately paid over | ||||||
| 13 | by the Department to the State Treasurer, ex officio, as | ||||||
| 14 | trustee, for deposit into the Local Government Aviation Trust | ||||||
| 15 | Fund. The Department shall only pay moneys into the Local | ||||||
| 16 | Government Aviation Trust Fund under this Act for so long as | ||||||
| 17 | the revenue use requirements of 49 U.S.C. 47107(b) and 49 | ||||||
| 18 | U.S.C. 47133 are binding on the Authority. On or before the | ||||||
| 19 | 25th day of each calendar month, the State Department of | ||||||
| 20 | Revenue shall prepare and certify to the Comptroller of the | ||||||
| 21 | State of Illinois and to the Authority (i) the amount of taxes | ||||||
| 22 | collected in each county other than Cook County in the | ||||||
| 23 | metropolitan region, (not including, if an airport-related | ||||||
| 24 | purpose has been certified, the taxes and penalties collected | ||||||
| 25 | from the 0.50% of the 0.75% rate on aviation fuel sold on or | ||||||
| 26 | after December 1, 2019 that are deposited into the Local | ||||||
| |||||||
| |||||||
| 1 | Government Aviation Trust Fund) (ii) the amount of taxes | ||||||
| 2 | collected within the City of Chicago, and (iii) the amount | ||||||
| 3 | collected in that portion of Cook County outside of Chicago, | ||||||
| 4 | each amount less the amount necessary for the payment of | ||||||
| 5 | refunds to taxpayers located in those areas described in items | ||||||
| 6 | (i), (ii), and (iii), and less 1.5% of the remainder, which | ||||||
| 7 | shall be transferred from the trust fund into the Tax | ||||||
| 8 | Compliance and Administration Fund. The Department, at the | ||||||
| 9 | time of each monthly disbursement to the Authority, shall | ||||||
| 10 | prepare and certify to the State Comptroller the amount to be | ||||||
| 11 | transferred into the Tax Compliance and Administration Fund | ||||||
| 12 | under this subsection. Within 10 days after receipt by the | ||||||
| 13 | Comptroller of the certification of the amounts, the | ||||||
| 14 | Comptroller shall cause an order to be drawn for the transfer | ||||||
| 15 | of the amount certified into the Tax Compliance and | ||||||
| 16 | Administration Fund and the payment of two-thirds of the | ||||||
| 17 | amounts certified in item (i) of this subsection to the | ||||||
| 18 | Authority and one-third of the amounts certified in item (i) | ||||||
| 19 | of this subsection to the respective counties other than Cook | ||||||
| 20 | County and the amount certified in items (ii) and (iii) of this | ||||||
| 21 | subsection to the Authority. | ||||||
| 22 | In addition to the disbursement required by the preceding | ||||||
| 23 | paragraph, an allocation shall be made in July 1991 and each | ||||||
| 24 | year thereafter to the Regional Transportation Authority. The | ||||||
| 25 | allocation shall be made in an amount equal to the average | ||||||
| 26 | monthly distribution during the preceding calendar year | ||||||
| |||||||
| |||||||
| 1 | (excluding the 2 months of lowest receipts) and the allocation | ||||||
| 2 | shall include the amount of average monthly distribution from | ||||||
| 3 | the Regional Transportation Authority Occupation and Use Tax | ||||||
| 4 | Replacement Fund. The distribution made in July 1992 and each | ||||||
| 5 | year thereafter under this paragraph and the preceding | ||||||
| 6 | paragraph shall be reduced by the amount allocated and | ||||||
| 7 | disbursed under this paragraph in the preceding calendar year. | ||||||
| 8 | The Department of Revenue shall prepare and certify to the | ||||||
| 9 | Comptroller for disbursement the allocations made in | ||||||
| 10 | accordance with this paragraph. | ||||||
| 11 | (o) Failure to adopt a budget ordinance or otherwise to | ||||||
| 12 | comply with Section 4.01 of this Act or to adopt a Five-year | ||||||
| 13 | Capital Program or otherwise to comply with paragraph (b) of | ||||||
| 14 | Section 2.01 of this Act shall not affect the validity of any | ||||||
| 15 | tax imposed by the Authority otherwise in conformity with law. | ||||||
| 16 | (p) At no time shall a public transportation tax or motor | ||||||
| 17 | vehicle parking tax authorized under paragraphs (b), (c), and | ||||||
| 18 | (d) of this Section be in effect at the same time as any | ||||||
| 19 | retailers' occupation, use or service occupation tax | ||||||
| 20 | authorized under paragraphs (e), (f), and (g) of this Section | ||||||
| 21 | is in effect. | ||||||
| 22 | Any taxes imposed under the authority provided in | ||||||
| 23 | paragraphs (b), (c), and (d) shall remain in effect only until | ||||||
| 24 | the time as any tax authorized by paragraph (e), (f), or (g) of | ||||||
| 25 | this Section are imposed and becomes effective. Once any tax | ||||||
| 26 | authorized by paragraph (e), (f), or (g) is imposed the Board | ||||||
| |||||||
| |||||||
| 1 | may not reimpose taxes as authorized in paragraphs (b), (c), | ||||||
| 2 | and (d) of the Section unless any tax authorized by paragraph | ||||||
| 3 | (e), (f), or (g) of this Section becomes ineffective by means | ||||||
| 4 | other than an ordinance of the Board. | ||||||
| 5 | (q) Any existing rights, remedies and obligations | ||||||
| 6 | (including enforcement by the Regional Transportation | ||||||
| 7 | Authority) arising under any tax imposed under paragraph (b), | ||||||
| 8 | (c), or (d) of this Section shall not be affected by the | ||||||
| 9 | imposition of a tax under paragraph (e), (f), or (g) of this | ||||||
| 10 | Section. | ||||||
| 11 | (Source: P.A. 101-10, eff. 6-5-19; 101-81, eff. 7-12-19; | ||||||
| 12 | 101-604, eff. 12-13-19; 102-700, eff. 4-19-22.)
| ||||||
| 13 | ARTICLE 80. | ||||||
| 14 | Section 80-5. The Cigarette Tax Act is amended by changing | ||||||
| 15 | Sections 4b, 9, 9e, and 9f as follows:
| ||||||
| 16 | (35 ILCS 130/4b) (from Ch. 120, par. 453.4b) | ||||||
| 17 | Sec. 4b. (a) The Department may, in its discretion, upon | ||||||
| 18 | application, issue permits authorizing the payment of the tax | ||||||
| 19 | herein imposed by out-of-State cigarette manufacturers who are | ||||||
| 20 | not required to be licensed as distributors of cigarettes in | ||||||
| 21 | this State, but who elect to qualify under this Act as | ||||||
| 22 | distributors of cigarettes in this State, and who, to the | ||||||
| 23 | satisfaction of the Department, furnish adequate security to | ||||||
| |||||||
| |||||||
| 1 | insure payment of the tax, provided that any such permit shall | ||||||
| 2 | extend only to cigarettes which such permittee manufacturer | ||||||
| 3 | places in original packages that are contained inside a sealed | ||||||
| 4 | transparent wrapper. Such permits shall be issued without | ||||||
| 5 | charge in such form as the Department may prescribe and shall | ||||||
| 6 | not be transferable or assignable. | ||||||
| 7 | The following are ineligible to receive a distributor's | ||||||
| 8 | permit under this subsection: | ||||||
| 9 | (1) a person who is not of good character and | ||||||
| 10 | reputation in the community in which he resides; the | ||||||
| 11 | Department may consider past conviction of a felony but | ||||||
| 12 | the conviction shall not operate as an absolute bar to | ||||||
| 13 | receiving a permit; | ||||||
| 14 | (2) a person who has been convicted of a felony under | ||||||
| 15 | any Federal or State law, if the Department, after | ||||||
| 16 | investigation and a hearing and consideration of | ||||||
| 17 | mitigating factors and evidence of rehabilitation | ||||||
| 18 | contained in the applicant's record, including those in | ||||||
| 19 | Section 4i of this Act, determines that such person has | ||||||
| 20 | not been sufficiently rehabilitated to warrant the public | ||||||
| 21 | trust and the conviction will impair the ability of the | ||||||
| 22 | person to engage in the position for which a permit is | ||||||
| 23 | sought; | ||||||
| 24 | (3) a corporation, if any officer, manager or director | ||||||
| 25 | thereof, or any stockholder or stockholders owning in the | ||||||
| 26 | aggregate more than 5% of the stock of such corporation, | ||||||
| |||||||
| |||||||
| 1 | would not be eligible to receive a permit under this Act | ||||||
| 2 | for any reason. | ||||||
| 3 | With respect to cigarettes which come within the scope of | ||||||
| 4 | such a permit and which any such permittee delivers or causes | ||||||
| 5 | to be delivered in Illinois to licensed distributors, such | ||||||
| 6 | permittee shall remit the tax imposed by this Act at the times | ||||||
| 7 | provided for in Section 3 of this Act. Each such remittance | ||||||
| 8 | shall be accompanied by a return filed with the Department on a | ||||||
| 9 | form to be prescribed and furnished by the Department and | ||||||
| 10 | shall disclose such information as the Department may lawfully | ||||||
| 11 | require. Information that the Department may lawfully require | ||||||
| 12 | includes information related to the uniform regulation and | ||||||
| 13 | taxation of cigarettes. The Department may promulgate rules to | ||||||
| 14 | require that the permittee's return be accompanied by | ||||||
| 15 | appropriate computer-generated magnetic media supporting | ||||||
| 16 | schedule data in the format prescribed by the Department, | ||||||
| 17 | unless, as provided by rule, the Department grants an | ||||||
| 18 | exception upon petition of the permittee. Each such return | ||||||
| 19 | shall be accompanied by a copy of each invoice rendered by the | ||||||
| 20 | permittee to any licensed distributor to whom the permittee | ||||||
| 21 | delivered cigarettes of the type covered by the permit (or | ||||||
| 22 | caused cigarettes of the type covered by the permit to be | ||||||
| 23 | delivered) in Illinois during the period covered by such | ||||||
| 24 | return. | ||||||
| 25 | Such permit may be suspended, canceled or revoked when, at | ||||||
| 26 | any time, the Department considers that the security given is | ||||||
| |||||||
| |||||||
| 1 | inadequate, or that such tax can more effectively be collected | ||||||
| 2 | from distributors located in this State, or whenever the | ||||||
| 3 | permittee violates any provision of this Act or any lawful | ||||||
| 4 | rule or regulation issued by the Department pursuant to this | ||||||
| 5 | Act or is determined to be ineligible for a distributor's | ||||||
| 6 | permit under this Act as provided in this Section, whenever | ||||||
| 7 | the permittee shall notify the Department in writing of his | ||||||
| 8 | desire to have the permit canceled. The Department shall have | ||||||
| 9 | the power, in its discretion, to issue a new permit after such | ||||||
| 10 | suspension, cancellation or revocation, except when the person | ||||||
| 11 | who would receive the permit is ineligible to receive a | ||||||
| 12 | distributor's permit under this Act. | ||||||
| 13 | All permits issued by the Department under this Act shall | ||||||
| 14 | be valid for not to exceed one year after issuance unless | ||||||
| 15 | sooner revoked, canceled or suspended as in this Act provided. | ||||||
| 16 | (b) Out-of-state cigarette manufacturers who are not | ||||||
| 17 | required to be licensed as distributors of cigarettes in this | ||||||
| 18 | State and who do not elect to obtain approval under subsection | ||||||
| 19 | 4b(a) to pay the tax imposed by this Act, but who elect to | ||||||
| 20 | qualify under this Act as distributors of cigarettes in this | ||||||
| 21 | State for purposes of shipping and delivering unstamped | ||||||
| 22 | original packages of cigarettes into this State to licensed | ||||||
| 23 | distributors, shall obtain a permit from the Department. These | ||||||
| 24 | permits shall be issued without charge in such form as the | ||||||
| 25 | Department may prescribe and shall not be transferable or | ||||||
| 26 | assignable. | ||||||
| |||||||
| |||||||
| 1 | The following are ineligible to receive a distributor's | ||||||
| 2 | permit under this subsection: | ||||||
| 3 | (1) a person who is not of good character and | ||||||
| 4 | reputation in the community in which he or she resides; | ||||||
| 5 | the Department may consider past conviction of a felony | ||||||
| 6 | but the conviction shall not operate as an absolute bar to | ||||||
| 7 | receiving a permit; | ||||||
| 8 | (2) a person who has been convicted of a felony under | ||||||
| 9 | any federal or State law, if the Department, after | ||||||
| 10 | investigation and a hearing and consideration of | ||||||
| 11 | mitigating factors and evidence of rehabilitation | ||||||
| 12 | contained in the applicant's record, including those set | ||||||
| 13 | forth in Section 4i of this Act, determines that the | ||||||
| 14 | person has not been sufficiently rehabilitated to warrant | ||||||
| 15 | the public trust and the conviction will impair the | ||||||
| 16 | ability of the person to engage in the position for which a | ||||||
| 17 | permit is sought; and | ||||||
| 18 | (3) a corporation, if any officer, manager, or | ||||||
| 19 | director thereof, or any stockholder or stockholders | ||||||
| 20 | owning in the aggregate more than 5% of the stock of the | ||||||
| 21 | corporation, would not be eligible to receive a permit | ||||||
| 22 | under this Act for any reason. | ||||||
| 23 | With respect to original packages of cigarettes that such | ||||||
| 24 | permittee delivers or causes to be delivered in Illinois and | ||||||
| 25 | distributes to the public for promotional purposes without | ||||||
| 26 | consideration, the permittee shall pay the tax imposed by this | ||||||
| |||||||
| |||||||
| 1 | Act by remitting the amount thereof to the Department by the | ||||||
| 2 | 5th day of each month covering cigarettes shipped or otherwise | ||||||
| 3 | delivered in Illinois for those purposes during the preceding | ||||||
| 4 | calendar month. The permittee, before delivering those | ||||||
| 5 | cigarettes or causing those cigarettes to be delivered in this | ||||||
| 6 | State, shall evidence his or her obligation to remit the taxes | ||||||
| 7 | due with respect to those cigarettes by imprinting language to | ||||||
| 8 | be prescribed by the Department on each original package of | ||||||
| 9 | cigarettes, in such place thereon and in such manner also to be | ||||||
| 10 | prescribed by the Department. The imprinted language shall | ||||||
| 11 | acknowledge the permittee's payment of or liability for the | ||||||
| 12 | tax imposed by this Act with respect to the distribution of | ||||||
| 13 | those cigarettes. | ||||||
| 14 | With respect to cigarettes that the permittee delivers or | ||||||
| 15 | causes to be delivered in Illinois to Illinois licensed | ||||||
| 16 | distributors or distributed to the public for promotional | ||||||
| 17 | purposes, the permittee shall, by the 5th day of each month, | ||||||
| 18 | file with the Department, a report covering cigarettes shipped | ||||||
| 19 | or otherwise delivered in Illinois to licensed distributors or | ||||||
| 20 | distributed to the public for promotional purposes during the | ||||||
| 21 | preceding calendar month on a form to be prescribed and | ||||||
| 22 | furnished by the Department and shall disclose such other | ||||||
| 23 | information as the Department may lawfully require. | ||||||
| 24 | Information that the Department may lawfully require includes | ||||||
| 25 | information related to the uniform regulation and taxation of | ||||||
| 26 | cigarettes. The Department may promulgate rules to require | ||||||
| |||||||
| |||||||
| 1 | that the permittee's report be accompanied by appropriate | ||||||
| 2 | computer-generated magnetic media supporting schedule data in | ||||||
| 3 | the format prescribed by the Department, unless, as provided | ||||||
| 4 | by rule, the Department grants an exception upon petition of | ||||||
| 5 | the permittee. Each such report shall be accompanied by a copy | ||||||
| 6 | of each invoice rendered by the permittee to any purchaser to | ||||||
| 7 | whom the permittee delivered cigarettes of the type covered by | ||||||
| 8 | the permit (or caused cigarettes of the type covered by the | ||||||
| 9 | permit to be delivered) in Illinois during the period covered | ||||||
| 10 | by such report. | ||||||
| 11 | Such permit may be suspended, canceled, or revoked | ||||||
| 12 | whenever the permittee violates any provision of this Act or | ||||||
| 13 | any lawful rule or regulation issued by the Department | ||||||
| 14 | pursuant to this Act, is determined to be ineligible for a | ||||||
| 15 | distributor's permit under this Act as provided in this | ||||||
| 16 | Section, or notifies the Department in writing of his or her | ||||||
| 17 | desire to have the permit canceled. The Department shall have | ||||||
| 18 | the power, in its discretion, to issue a new permit after such | ||||||
| 19 | suspension, cancellation, or revocation, except when the | ||||||
| 20 | person who would receive the permit is ineligible to receive a | ||||||
| 21 | distributor's permit under this Act. | ||||||
| 22 | All permits issued by the Department under this Act shall | ||||||
| 23 | be valid for a period not to exceed one year after issuance | ||||||
| 24 | unless sooner revoked, canceled, or suspended as provided in | ||||||
| 25 | this Act. | ||||||
| 26 | (Source: P.A. 100-286, eff. 1-1-18.)
| ||||||
| |||||||
| |||||||
| 1 | (35 ILCS 130/9) (from Ch. 120, par. 453.9) | ||||||
| 2 | Sec. 9. Returns; remittance. Every distributor who is | ||||||
| 3 | required to procure a license under this Act, but who is not a | ||||||
| 4 | manufacturer of cigarettes in original packages which are | ||||||
| 5 | contained in a sealed transparent wrapper, shall, on or before | ||||||
| 6 | the 15th day of each calendar month, file a return with the | ||||||
| 7 | Department, showing the quantity of cigarettes manufactured | ||||||
| 8 | during the preceding calendar month, the quantity of | ||||||
| 9 | cigarettes brought into this State or caused to be brought | ||||||
| 10 | into this State from outside this State during the preceding | ||||||
| 11 | calendar month without authorized evidence on the original | ||||||
| 12 | packages of such cigarettes underneath the sealed transparent | ||||||
| 13 | wrapper thereof that the tax liability imposed by this Act has | ||||||
| 14 | been assumed by the out-of-State seller of such cigarettes, | ||||||
| 15 | the quantity of cigarettes purchased tax-paid during the | ||||||
| 16 | preceding calendar month either within or outside this State, | ||||||
| 17 | the quantity of cigarettes sold by manufacturer | ||||||
| 18 | representatives on behalf of the distributor, the quantity of | ||||||
| 19 | cigarettes sold to manufacturer representatives, and the | ||||||
| 20 | quantity of cigarettes sold or otherwise disposed of during | ||||||
| 21 | the preceding calendar month. Such return shall be filed upon | ||||||
| 22 | forms furnished and prescribed by the Department and shall | ||||||
| 23 | contain such other information as the Department may | ||||||
| 24 | reasonably require. Information that the Department may | ||||||
| 25 | reasonably require includes information related to the uniform | ||||||
| |||||||
| |||||||
| 1 | regulation and taxation of cigarettes. The Department may | ||||||
| 2 | promulgate rules to require that the distributor's return be | ||||||
| 3 | accompanied by appropriate computer-generated magnetic media | ||||||
| 4 | supporting schedule data in the format required by the | ||||||
| 5 | Department, unless, as provided by rule, the Department grants | ||||||
| 6 | an exception upon petition of a distributor. | ||||||
| 7 | Illinois manufacturers of cigarettes in original packages | ||||||
| 8 | which are contained inside a sealed transparent wrapper shall | ||||||
| 9 | file a return by the 5th day of each month covering the | ||||||
| 10 | preceding calendar month. Each such return shall be | ||||||
| 11 | accompanied by the appropriate remittance for tax as provided | ||||||
| 12 | in Section 3 of this Act. Each such return shall show the | ||||||
| 13 | quantity of such cigarettes manufactured during the period | ||||||
| 14 | covered by the return, the quantity of cigarettes sold or | ||||||
| 15 | otherwise disposed of during the period covered by the return | ||||||
| 16 | and such other information as the Department may lawfully | ||||||
| 17 | require. Information that the Department may lawfully require | ||||||
| 18 | includes information related to the uniform regulation and | ||||||
| 19 | taxation of cigarettes. Such returns shall be filed on forms | ||||||
| 20 | prescribed and furnished by the Department. Each such return | ||||||
| 21 | shall be accompanied by a copy of each invoice rendered by such | ||||||
| 22 | manufacturer to any purchaser to whom such manufacturer | ||||||
| 23 | delivered cigarettes (or caused cigarettes to be delivered) | ||||||
| 24 | during the period covered by the return. The Department may | ||||||
| 25 | promulgate rules to require that the manufacturer's return be | ||||||
| 26 | accompanied by appropriate computer-generated magnetic media | ||||||
| |||||||
| |||||||
| 1 | supporting schedule data in the format required by the | ||||||
| 2 | Department, unless, as provided by rule, the Department grants | ||||||
| 3 | an exception upon petition of a manufacturer. | ||||||
| 4 | (Source: P.A. 97-587, eff. 8-26-11.)
| ||||||
| 5 | (35 ILCS 130/9e) | ||||||
| 6 | Sec. 9e. Secondary distributors; reports. Every secondary | ||||||
| 7 | distributor who is required to procure a license under this | ||||||
| 8 | Act shall, on or before the 15th day of each calendar month, | ||||||
| 9 | file a report with the Department, showing the quantity of | ||||||
| 10 | cigarettes purchased during the preceding calendar month | ||||||
| 11 | either within or outside this State, and the quantity of | ||||||
| 12 | cigarettes sold to retailers or otherwise disposed of during | ||||||
| 13 | the preceding calendar month. Such reports shall be filed | ||||||
| 14 | electronically in such form prescribed by the Department and | ||||||
| 15 | shall contain such other information as the Department may | ||||||
| 16 | reasonably require. Information that the Department may | ||||||
| 17 | reasonably require includes information related to the uniform | ||||||
| 18 | regulation and taxation of cigarettes. The secondary | ||||||
| 19 | distributor's report shall be accompanied by appropriate | ||||||
| 20 | computer generated magnetic media supporting schedule data in | ||||||
| 21 | the format required by the Department, unless, as provided by | ||||||
| 22 | rule, the Department grants an exception upon petition of a | ||||||
| 23 | secondary distributor. | ||||||
| 24 | A certification by the Director of the Department that a | ||||||
| 25 | report has not been filed, or that information has not been | ||||||
| |||||||
| |||||||
| 1 | supplied pursuant to the provisions of this Act, shall be | ||||||
| 2 | prima facie evidence thereof. | ||||||
| 3 | (Source: P.A. 96-1027, eff. 7-12-10.)
| ||||||
| 4 | (35 ILCS 130/9f) | ||||||
| 5 | Sec. 9f. Manufacturer representatives; reports. Every | ||||||
| 6 | manufacturer with authority to maintain manufacturer | ||||||
| 7 | representatives as defined by Section 4f of this Act shall, on | ||||||
| 8 | or before the 15th day of each calendar month, file a report | ||||||
| 9 | with the Department, showing the quantity of cigarettes | ||||||
| 10 | purchased from licensed distributors during the preceding | ||||||
| 11 | calendar month, either within or outside this State, and the | ||||||
| 12 | quantity of cigarettes sold to retailers or otherwise disposed | ||||||
| 13 | of during the preceding calendar month. Such reports shall be | ||||||
| 14 | filed in the form prescribed by the Department and shall | ||||||
| 15 | contain such other information as the Department may | ||||||
| 16 | reasonably require. Information that the Department may | ||||||
| 17 | reasonably require includes information related to the uniform | ||||||
| 18 | regulation and taxation of cigarettes. The report shall be | ||||||
| 19 | filed electronically and be accompanied by appropriate | ||||||
| 20 | computer generated magnetic media supporting schedule data in | ||||||
| 21 | the format required by the Department, unless, as provided by | ||||||
| 22 | rule, the Department grants an exception upon petition of a | ||||||
| 23 | manufacturer with authority to maintain manufacturer | ||||||
| 24 | representatives in this State. | ||||||
| 25 | A certification by the Director of the Department that a | ||||||
| |||||||
| |||||||
| 1 | report has not been filed, or that information has not been | ||||||
| 2 | supplied pursuant to the provisions of this Act, shall be | ||||||
| 3 | prima facie evidence thereof. | ||||||
| 4 | (Source: P.A. 97-587, eff. 8-26-11.)
| ||||||
| 5 | Section 80-10. The Cigarette Use Tax Act is amended by | ||||||
| 6 | changing Sections 11 and 11a as follows:
| ||||||
| 7 | (35 ILCS 135/11) (from Ch. 120, par. 453.41) | ||||||
| 8 | Sec. 11. Return by distributor or manufacturer. Every | ||||||
| 9 | distributor, who is required or authorized to collect tax | ||||||
| 10 | under this Act, but who is not a manufacturer of cigarettes in | ||||||
| 11 | original packages which are contained in a sealed transparent | ||||||
| 12 | wrapper, shall, on or before the 15th day of each calendar | ||||||
| 13 | month, file a return with the Department, showing such | ||||||
| 14 | information as the Department may reasonably require. | ||||||
| 15 | Information that the Department may reasonably require | ||||||
| 16 | includes information related to the uniform regulation and | ||||||
| 17 | taxation of cigarettes. The Department may promulgate rules to | ||||||
| 18 | require that the distributor's return be accompanied by | ||||||
| 19 | appropriate computer-generated magnetic media supporting | ||||||
| 20 | schedule data in the format required by the Department, | ||||||
| 21 | unless, as provided by rule, the Department grants an | ||||||
| 22 | exception upon petition of a distributor. | ||||||
| 23 | Illinois manufacturers of cigarettes in original packages | ||||||
| 24 | which are contained inside a sealed transparent wrapper shall | ||||||
| |||||||
| |||||||
| 1 | file a return by the 5th day of each month covering the | ||||||
| 2 | preceding calendar month. Each such return shall be | ||||||
| 3 | accompanied by the appropriate remittance for tax as provided | ||||||
| 4 | in Section 3 of this Act. Each such return shall disclose such | ||||||
| 5 | information as the Department may lawfully require. | ||||||
| 6 | Information that the Department may lawfully require includes | ||||||
| 7 | information related to the uniform regulation and taxation of | ||||||
| 8 | cigarettes. Each such return shall be accompanied by a copy of | ||||||
| 9 | each invoice rendered by such manufacturer to any purchaser to | ||||||
| 10 | whom such manufacturer delivered cigarettes (or caused | ||||||
| 11 | cigarettes to be delivered) during the period covered by the | ||||||
| 12 | return. The Department may promulgate rules to require that | ||||||
| 13 | the manufacturer's return be accompanied by appropriate | ||||||
| 14 | computer-generated magnetic media supporting schedule data in | ||||||
| 15 | the format required by the Department, unless, as provided by | ||||||
| 16 | rule, the Department grants an exception upon petition of a | ||||||
| 17 | manufacturer. | ||||||
| 18 | No distributor shall be required to return information to | ||||||
| 19 | the extent to which the reporting of such information would be | ||||||
| 20 | a duplication of such distributor's reporting of information | ||||||
| 21 | in any return which he is required to file with the Department | ||||||
| 22 | under the Cigarette Tax Act. Returns shall be filed on forms | ||||||
| 23 | prescribed by the Department. | ||||||
| 24 | (Source: P.A. 92-322, eff. 1-1-02.)
| ||||||
| 25 | (35 ILCS 135/11a) | ||||||
| |||||||
| |||||||
| 1 | Sec. 11a. Secondary distributors; reports. Every secondary | ||||||
| 2 | distributor who is required to procure, or is authorized to | ||||||
| 3 | procure, a license under this Act shall, on or before the 15th | ||||||
| 4 | day of each calendar month, file a report with the Department, | ||||||
| 5 | showing the quantity of cigarettes purchased during the | ||||||
| 6 | preceding calendar month either within or outside this State, | ||||||
| 7 | and the quantity of cigarettes sold to Illinois retailers or | ||||||
| 8 | otherwise disposed of during the preceding calendar month. | ||||||
| 9 | Such reports shall be filed electronically in such form | ||||||
| 10 | prescribed by the Department and shall contain such other | ||||||
| 11 | information as the Department may reasonably require. | ||||||
| 12 | Information that the Department may reasonably require | ||||||
| 13 | includes information related to the uniform regulation and | ||||||
| 14 | taxation of cigarettes. The secondary distributor's report | ||||||
| 15 | shall be accompanied by appropriate computer generated | ||||||
| 16 | magnetic media supporting schedule data in the format required | ||||||
| 17 | by the Department, unless, as provided by rule, the Department | ||||||
| 18 | grants an exception upon petition of a secondary distributor. | ||||||
| 19 | A certification by the Director of the Department that a | ||||||
| 20 | report has not been filed, or that information has not been | ||||||
| 21 | supplied pursuant to the provisions of this Act, shall be | ||||||
| 22 | prima facie evidence thereof. | ||||||
| 23 | (Source: P.A. 96-1027, eff. 7-12-10.)
| ||||||
| 24 | Section 80-15. The Tobacco Products Tax Act of 1995 is | ||||||
| 25 | amended by changing Section 10-30 as follows:
| ||||||
| |||||||
| |||||||
| 1 | (35 ILCS 143/10-30) | ||||||
| 2 | Sec. 10-30. Returns. | ||||||
| 3 | (a) Every distributor shall, on or before the 15th day of | ||||||
| 4 | each month, file a return with the Department covering the | ||||||
| 5 | preceding calendar month. The return shall disclose the | ||||||
| 6 | wholesale price for all tobacco products other than moist | ||||||
| 7 | snuff and the quantity in ounces of moist snuff sold or | ||||||
| 8 | otherwise disposed of and other information that the | ||||||
| 9 | Department may reasonably require. Information that the | ||||||
| 10 | Department may reasonably require includes information related | ||||||
| 11 | to the uniform regulation and taxation of tobacco products. | ||||||
| 12 | The return shall be filed upon a form prescribed and furnished | ||||||
| 13 | by the Department. | ||||||
| 14 | (b) In addition to the information required under | ||||||
| 15 | subsection (a), on or before the 15th day of each month, | ||||||
| 16 | covering the preceding calendar month, each stamping | ||||||
| 17 | distributor shall, on forms prescribed and furnished by the | ||||||
| 18 | Department, report the quantity of little cigars sold or | ||||||
| 19 | otherwise disposed of, including the number of packages of | ||||||
| 20 | little cigars sold or disposed of during the month containing | ||||||
| 21 | 20 or 25 little cigars. | ||||||
| 22 | (c) At the time when any return of any distributor is due | ||||||
| 23 | to be filed with the Department, the distributor shall also | ||||||
| 24 | remit to the Department the tax liability that the distributor | ||||||
| 25 | has incurred for transactions occurring in the preceding | ||||||
| |||||||
| |||||||
| 1 | calendar month. | ||||||
| 2 | (d) The Department may adopt rules to require the | ||||||
| 3 | electronic filing of any return or document required to be | ||||||
| 4 | filed under this Act. Those rules may provide for exceptions | ||||||
| 5 | from the filing requirement set forth in this paragraph for | ||||||
| 6 | persons who demonstrate that they do not have access to the | ||||||
| 7 | Internet and petition the Department to waive the electronic | ||||||
| 8 | filing requirement. | ||||||
| 9 | (e) If any payment provided for in this Section exceeds | ||||||
| 10 | the distributor's liabilities under this Act, as shown on an | ||||||
| 11 | original return, the distributor may credit such excess | ||||||
| 12 | payment against liability subsequently to be remitted to the | ||||||
| 13 | Department under this Act, in accordance with reasonable rules | ||||||
| 14 | adopted by the Department. | ||||||
| 15 | (Source: P.A. 100-1171, eff. 1-4-19.)
| ||||||
| 16 | ARTICLE 85. | ||||||
| 17 | Section 85-5. The Illinois Income Tax Act is amended by | ||||||
| 18 | changing Section 304 as follows:
| ||||||
| 19 | (35 ILCS 5/304) (from Ch. 120, par. 3-304) | ||||||
| 20 | Sec. 304. Business income of persons other than residents. | ||||||
| 21 | (a) In general. The business income of a person other than | ||||||
| 22 | a resident shall be allocated to this State if such person's | ||||||
| 23 | business income is derived solely from this State. If a person | ||||||
| |||||||
| |||||||
| 1 | other than a resident derives business income from this State | ||||||
| 2 | and one or more other states, then, for tax years ending on or | ||||||
| 3 | before December 30, 1998, and except as otherwise provided by | ||||||
| 4 | this Section, such person's business income shall be | ||||||
| 5 | apportioned to this State by multiplying the income by a | ||||||
| 6 | fraction, the numerator of which is the sum of the property | ||||||
| 7 | factor (if any), the payroll factor (if any) and 200% of the | ||||||
| 8 | sales factor (if any), and the denominator of which is 4 | ||||||
| 9 | reduced by the number of factors other than the sales factor | ||||||
| 10 | which have a denominator of zero and by an additional 2 if the | ||||||
| 11 | sales factor has a denominator of zero. For tax years ending on | ||||||
| 12 | or after December 31, 1998, and except as otherwise provided | ||||||
| 13 | by this Section, persons other than residents who derive | ||||||
| 14 | business income from this State and one or more other states | ||||||
| 15 | shall compute their apportionment factor by weighting their | ||||||
| 16 | property, payroll, and sales factors as provided in subsection | ||||||
| 17 | (h) of this Section. | ||||||
| 18 | (1) Property factor. | ||||||
| 19 | (A) The property factor is a fraction, the numerator | ||||||
| 20 | of which is the average value of the person's real and | ||||||
| 21 | tangible personal property owned or rented and used in the | ||||||
| 22 | trade or business in this State during the taxable year | ||||||
| 23 | and the denominator of which is the average value of all | ||||||
| 24 | the person's real and tangible personal property owned or | ||||||
| 25 | rented and used in the trade or business during the | ||||||
| 26 | taxable year. | ||||||
| |||||||
| |||||||
| 1 | (B) Property owned by the person is valued at its | ||||||
| 2 | original cost. Property rented by the person is valued at | ||||||
| 3 | 8 times the net annual rental rate. Net annual rental rate | ||||||
| 4 | is the annual rental rate paid by the person less any | ||||||
| 5 | annual rental rate received by the person from | ||||||
| 6 | sub-rentals. | ||||||
| 7 | (C) The average value of property shall be determined | ||||||
| 8 | by averaging the values at the beginning and ending of the | ||||||
| 9 | taxable year, but the Director may require the averaging | ||||||
| 10 | of monthly values during the taxable year if reasonably | ||||||
| 11 | required to reflect properly the average value of the | ||||||
| 12 | person's property. | ||||||
| 13 | (2) Payroll factor. | ||||||
| 14 | (A) The payroll factor is a fraction, the numerator of | ||||||
| 15 | which is the total amount paid in this State during the | ||||||
| 16 | taxable year by the person for compensation, and the | ||||||
| 17 | denominator of which is the total compensation paid | ||||||
| 18 | everywhere during the taxable year. | ||||||
| 19 | (B) Compensation is paid in this State if: | ||||||
| 20 | (i) The individual's service is performed entirely | ||||||
| 21 | within this State; | ||||||
| 22 | (ii) The individual's service is performed both | ||||||
| 23 | within and without this State, but the service | ||||||
| 24 | performed without this State is incidental to the | ||||||
| 25 | individual's service performed within this State; or | ||||||
| 26 | (iii) For tax years ending prior to December 31, | ||||||
| |||||||
| |||||||
| 1 | 2020, some of the service is performed within this | ||||||
| 2 | State and either the base of operations, or if there is | ||||||
| 3 | no base of operations, the place from which the | ||||||
| 4 | service is directed or controlled is within this | ||||||
| 5 | State, or the base of operations or the place from | ||||||
| 6 | which the service is directed or controlled is not in | ||||||
| 7 | any state in which some part of the service is | ||||||
| 8 | performed, but the individual's residence is in this | ||||||
| 9 | State. For tax years ending on or after December 31, | ||||||
| 10 | 2020, compensation is paid in this State if some of the | ||||||
| 11 | individual's service is performed within this State, | ||||||
| 12 | the individual's service performed within this State | ||||||
| 13 | is nonincidental to the individual's service performed | ||||||
| 14 | without this State, and the individual's service is | ||||||
| 15 | performed within this State for more than 30 working | ||||||
| 16 | days during the tax year. The amount of compensation | ||||||
| 17 | paid in this State shall include the portion of the | ||||||
| 18 | individual's total compensation for services performed | ||||||
| 19 | on behalf of his or her employer during the tax year | ||||||
| 20 | which the number of working days spent within this | ||||||
| 21 | State during the tax year bears to the total number of | ||||||
| 22 | working days spent both within and without this State | ||||||
| 23 | during the tax year. For purposes of this paragraph: | ||||||
| 24 | (a) The term "working day" means all days | ||||||
| 25 | during the tax year in which the individual | ||||||
| 26 | performs duties on behalf of his or her employer. | ||||||
| |||||||
| |||||||
| 1 | All days in which the individual performs no | ||||||
| 2 | duties on behalf of his or her employer (e.g., | ||||||
| 3 | weekends, vacation days, sick days, and holidays) | ||||||
| 4 | are not working days. | ||||||
| 5 | (b) A working day is spent within this State | ||||||
| 6 | if: | ||||||
| 7 | (1) the individual performs service on | ||||||
| 8 | behalf of the employer and a greater amount of | ||||||
| 9 | time on that day is spent by the individual | ||||||
| 10 | performing duties on behalf of the employer | ||||||
| 11 | within this State, without regard to time | ||||||
| 12 | spent traveling, than is spent performing | ||||||
| 13 | duties on behalf of the employer without this | ||||||
| 14 | State; or | ||||||
| 15 | (2) the only service the individual | ||||||
| 16 | performs on behalf of the employer on that day | ||||||
| 17 | is traveling to a destination within this | ||||||
| 18 | State, and the individual arrives on that day. | ||||||
| 19 | (c) Working days spent within this State do | ||||||
| 20 | not include any day in which the employee is | ||||||
| 21 | performing services in this State during a | ||||||
| 22 | disaster period solely in response to a request | ||||||
| 23 | made to his or her employer by the government of | ||||||
| 24 | this State, by any political subdivision of this | ||||||
| 25 | State, or by a person conducting business in this | ||||||
| 26 | State to perform disaster or emergency-related | ||||||
| |||||||
| |||||||
| 1 | services in this State. For purposes of this item | ||||||
| 2 | (c): | ||||||
| 3 | "Declared State disaster or emergency" | ||||||
| 4 | means a disaster or emergency event (i) for | ||||||
| 5 | which a Governor's proclamation of a state of | ||||||
| 6 | emergency has been issued or (ii) for which a | ||||||
| 7 | Presidential declaration of a federal major | ||||||
| 8 | disaster or emergency has been issued. | ||||||
| 9 | "Disaster period" means a period that | ||||||
| 10 | begins 10 days prior to the date of the | ||||||
| 11 | Governor's proclamation or the President's | ||||||
| 12 | declaration (whichever is earlier) and extends | ||||||
| 13 | for a period of 60 calendar days after the end | ||||||
| 14 | of the declared disaster or emergency period. | ||||||
| 15 | "Disaster or emergency-related services" | ||||||
| 16 | means repairing, renovating, installing, | ||||||
| 17 | building, or rendering services or conducting | ||||||
| 18 | other business activities that relate to | ||||||
| 19 | infrastructure that has been damaged, | ||||||
| 20 | impaired, or destroyed by the declared State | ||||||
| 21 | disaster or emergency. | ||||||
| 22 | "Infrastructure" means property and | ||||||
| 23 | equipment owned or used by a public utility, | ||||||
| 24 | communications network, broadband and internet | ||||||
| 25 | service provider, cable and video service | ||||||
| 26 | provider, electric or gas distribution system, | ||||||
| |||||||
| |||||||
| 1 | or water pipeline that provides service to | ||||||
| 2 | more than one customer or person, including | ||||||
| 3 | related support facilities. "Infrastructure" | ||||||
| 4 | includes, but is not limited to, real and | ||||||
| 5 | personal property such as buildings, offices, | ||||||
| 6 | power lines, cable lines, poles, | ||||||
| 7 | communications lines, pipes, structures, and | ||||||
| 8 | equipment. | ||||||
| 9 | (iv) Compensation paid to nonresident professional | ||||||
| 10 | athletes. | ||||||
| 11 | (a) General. The Illinois source income of a | ||||||
| 12 | nonresident individual who is a member of a | ||||||
| 13 | professional athletic team includes the portion of the | ||||||
| 14 | individual's total compensation for services performed | ||||||
| 15 | as a member of a professional athletic team during the | ||||||
| 16 | taxable year which the number of duty days spent | ||||||
| 17 | within this State performing services for the team in | ||||||
| 18 | any manner during the taxable year bears to the total | ||||||
| 19 | number of duty days spent both within and without this | ||||||
| 20 | State during the taxable year. | ||||||
| 21 | (b) Travel days. Travel days that do not involve | ||||||
| 22 | either a game, practice, team meeting, or other | ||||||
| 23 | similar team event are not considered duty days spent | ||||||
| 24 | in this State. However, such travel days are | ||||||
| 25 | considered in the total duty days spent both within | ||||||
| 26 | and without this State. | ||||||
| |||||||
| |||||||
| 1 | (c) Definitions. For purposes of this subpart | ||||||
| 2 | (iv): | ||||||
| 3 | (1) The term "professional athletic team" | ||||||
| 4 | includes, but is not limited to, any professional | ||||||
| 5 | baseball, basketball, football, soccer, or hockey | ||||||
| 6 | team. | ||||||
| 7 | (2) The term "member of a professional | ||||||
| 8 | athletic team" includes those employees who are | ||||||
| 9 | active players, players on the disabled list, and | ||||||
| 10 | any other persons required to travel and who | ||||||
| 11 | travel with and perform services on behalf of a | ||||||
| 12 | professional athletic team on a regular basis. | ||||||
| 13 | This includes, but is not limited to, coaches, | ||||||
| 14 | managers, and trainers. | ||||||
| 15 | (3) Except as provided in items (C) and (D) of | ||||||
| 16 | this subpart (3), the term "duty days" means all | ||||||
| 17 | days during the taxable year from the beginning of | ||||||
| 18 | the professional athletic team's official | ||||||
| 19 | pre-season training period through the last game | ||||||
| 20 | in which the team competes or is scheduled to | ||||||
| 21 | compete. Duty days shall be counted for the year | ||||||
| 22 | in which they occur, including where a team's | ||||||
| 23 | official pre-season training period through the | ||||||
| 24 | last game in which the team competes or is | ||||||
| 25 | scheduled to compete, occurs during more than one | ||||||
| 26 | tax year. | ||||||
| |||||||
| |||||||
| 1 | (A) Duty days shall also include days on | ||||||
| 2 | which a member of a professional athletic team | ||||||
| 3 | performs service for a team on a date that | ||||||
| 4 | does not fall within the foregoing period | ||||||
| 5 | (e.g., participation in instructional leagues, | ||||||
| 6 | the "All Star Game", or promotional | ||||||
| 7 | "caravans"). Performing a service for a | ||||||
| 8 | professional athletic team includes conducting | ||||||
| 9 | training and rehabilitation activities, when | ||||||
| 10 | such activities are conducted at team | ||||||
| 11 | facilities. | ||||||
| 12 | (B) Also included in duty days are game | ||||||
| 13 | days, practice days, days spent at team | ||||||
| 14 | meetings, promotional caravans, preseason | ||||||
| 15 | training camps, and days served with the team | ||||||
| 16 | through all post-season games in which the | ||||||
| 17 | team competes or is scheduled to compete. | ||||||
| 18 | (C) Duty days for any person who joins a | ||||||
| 19 | team during the period from the beginning of | ||||||
| 20 | the professional athletic team's official | ||||||
| 21 | pre-season training period through the last | ||||||
| 22 | game in which the team competes, or is | ||||||
| 23 | scheduled to compete, shall begin on the day | ||||||
| 24 | that person joins the team. Conversely, duty | ||||||
| 25 | days for any person who leaves a team during | ||||||
| 26 | this period shall end on the day that person | ||||||
| |||||||
| |||||||
| 1 | leaves the team. Where a person switches teams | ||||||
| 2 | during a taxable year, a separate duty-day | ||||||
| 3 | calculation shall be made for the period the | ||||||
| 4 | person was with each team. | ||||||
| 5 | (D) Days for which a member of a | ||||||
| 6 | professional athletic team is not compensated | ||||||
| 7 | and is not performing services for the team in | ||||||
| 8 | any manner, including days when such member of | ||||||
| 9 | a professional athletic team has been | ||||||
| 10 | suspended without pay and prohibited from | ||||||
| 11 | performing any services for the team, shall | ||||||
| 12 | not be treated as duty days. | ||||||
| 13 | (E) Days for which a member of a | ||||||
| 14 | professional athletic team is on the disabled | ||||||
| 15 | list and does not conduct rehabilitation | ||||||
| 16 | activities at facilities of the team, and is | ||||||
| 17 | not otherwise performing services for the team | ||||||
| 18 | in Illinois, shall not be considered duty days | ||||||
| 19 | spent in this State. All days on the disabled | ||||||
| 20 | list, however, are considered to be included | ||||||
| 21 | in total duty days spent both within and | ||||||
| 22 | without this State. | ||||||
| 23 | (4) The term "total compensation for services | ||||||
| 24 | performed as a member of a professional athletic | ||||||
| 25 | team" means the total compensation received during | ||||||
| 26 | the taxable year for services performed: | ||||||
| |||||||
| |||||||
| 1 | (A) from the beginning of the official | ||||||
| 2 | pre-season training period through the last | ||||||
| 3 | game in which the team competes or is | ||||||
| 4 | scheduled to compete during that taxable year; | ||||||
| 5 | and | ||||||
| 6 | (B) during the taxable year on a date | ||||||
| 7 | which does not fall within the foregoing | ||||||
| 8 | period (e.g., participation in instructional | ||||||
| 9 | leagues, the "All Star Game", or promotional | ||||||
| 10 | caravans). | ||||||
| 11 | This compensation shall include, but is not | ||||||
| 12 | limited to, salaries, wages, bonuses as described | ||||||
| 13 | in this subpart, and any other type of | ||||||
| 14 | compensation paid during the taxable year to a | ||||||
| 15 | member of a professional athletic team for | ||||||
| 16 | services performed in that year. This compensation | ||||||
| 17 | does not include strike benefits, severance pay, | ||||||
| 18 | termination pay, contract or option year buy-out | ||||||
| 19 | payments, expansion or relocation payments, or any | ||||||
| 20 | other payments not related to services performed | ||||||
| 21 | for the team. | ||||||
| 22 | For purposes of this subparagraph, "bonuses" | ||||||
| 23 | included in "total compensation for services | ||||||
| 24 | performed as a member of a professional athletic | ||||||
| 25 | team" subject to the allocation described in | ||||||
| 26 | Section 302(c)(1) are: bonuses earned as a result | ||||||
| |||||||
| |||||||
| 1 | of play (i.e., performance bonuses) during the | ||||||
| 2 | season, including bonuses paid for championship, | ||||||
| 3 | playoff or "bowl" games played by a team, or for | ||||||
| 4 | selection to all-star league or other honorary | ||||||
| 5 | positions; and bonuses paid for signing a | ||||||
| 6 | contract, unless the payment of the signing bonus | ||||||
| 7 | is not conditional upon the signee playing any | ||||||
| 8 | games for the team or performing any subsequent | ||||||
| 9 | services for the team or even making the team, the | ||||||
| 10 | signing bonus is payable separately from the | ||||||
| 11 | salary and any other compensation, and the signing | ||||||
| 12 | bonus is nonrefundable. | ||||||
| 13 | (3) Sales factor. | ||||||
| 14 | (A) The sales factor is a fraction, the numerator of | ||||||
| 15 | which is the total sales of the person in this State during | ||||||
| 16 | the taxable year, and the denominator of which is the | ||||||
| 17 | total sales of the person everywhere during the taxable | ||||||
| 18 | year. | ||||||
| 19 | (B) Sales of tangible personal property are in this | ||||||
| 20 | State if: | ||||||
| 21 | (i) The property is delivered or shipped to a | ||||||
| 22 | purchaser, other than the United States government, | ||||||
| 23 | within this State regardless of the f. o. b. point or | ||||||
| 24 | other conditions of the sale; or | ||||||
| 25 | (ii) The property is shipped from an office, | ||||||
| 26 | store, warehouse, factory or other place of storage in | ||||||
| |||||||
| |||||||
| 1 | this State and either the purchaser is the United | ||||||
| 2 | States government or the person is not taxable in the | ||||||
| 3 | state of the purchaser; provided, however, that | ||||||
| 4 | premises owned or leased by a person who has | ||||||
| 5 | independently contracted with the seller for the | ||||||
| 6 | printing of newspapers, periodicals or books shall not | ||||||
| 7 | be deemed to be an office, store, warehouse, factory | ||||||
| 8 | or other place of storage for purposes of this | ||||||
| 9 | Section. Sales of tangible personal property are not | ||||||
| 10 | in this State if the seller and purchaser would be | ||||||
| 11 | members of the same unitary business group but for the | ||||||
| 12 | fact that either the seller or purchaser is a person | ||||||
| 13 | with 80% or more of total business activity outside of | ||||||
| 14 | the United States and the property is purchased for | ||||||
| 15 | resale. | ||||||
| 16 | (B-1) Patents, copyrights, trademarks, and similar | ||||||
| 17 | items of intangible personal property. | ||||||
| 18 | (i) Gross receipts from the licensing, sale, or | ||||||
| 19 | other disposition of a patent, copyright, trademark, | ||||||
| 20 | or similar item of intangible personal property, other | ||||||
| 21 | than gross receipts governed by paragraph (B-7) of | ||||||
| 22 | this item (3), are in this State to the extent the item | ||||||
| 23 | is utilized in this State during the year the gross | ||||||
| 24 | receipts are included in gross income. | ||||||
| 25 | (ii) Place of utilization. | ||||||
| 26 | (I) A patent is utilized in a state to the | ||||||
| |||||||
| |||||||
| 1 | extent that it is employed in production, | ||||||
| 2 | fabrication, manufacturing, or other processing in | ||||||
| 3 | the state or to the extent that a patented product | ||||||
| 4 | is produced in the state. If a patent is utilized | ||||||
| 5 | in more than one state, the extent to which it is | ||||||
| 6 | utilized in any one state shall be a fraction | ||||||
| 7 | equal to the gross receipts of the licensee or | ||||||
| 8 | purchaser from sales or leases of items produced, | ||||||
| 9 | fabricated, manufactured, or processed within that | ||||||
| 10 | state using the patent and of patented items | ||||||
| 11 | produced within that state, divided by the total | ||||||
| 12 | of such gross receipts for all states in which the | ||||||
| 13 | patent is utilized. | ||||||
| 14 | (II) A copyright is utilized in a state to the | ||||||
| 15 | extent that printing or other publication | ||||||
| 16 | originates in the state. If a copyright is | ||||||
| 17 | utilized in more than one state, the extent to | ||||||
| 18 | which it is utilized in any one state shall be a | ||||||
| 19 | fraction equal to the gross receipts from sales or | ||||||
| 20 | licenses of materials printed or published in that | ||||||
| 21 | state divided by the total of such gross receipts | ||||||
| 22 | for all states in which the copyright is utilized. | ||||||
| 23 | (III) Trademarks and other items of intangible | ||||||
| 24 | personal property governed by this paragraph (B-1) | ||||||
| 25 | are utilized in the state in which the commercial | ||||||
| 26 | domicile of the licensee or purchaser is located. | ||||||
| |||||||
| |||||||
| 1 | (iii) If the state of utilization of an item of | ||||||
| 2 | property governed by this paragraph (B-1) cannot be | ||||||
| 3 | determined from the taxpayer's books and records or | ||||||
| 4 | from the books and records of any person related to the | ||||||
| 5 | taxpayer within the meaning of Section 267(b) of the | ||||||
| 6 | Internal Revenue Code, 26 U.S.C. 267, the gross | ||||||
| 7 | receipts attributable to that item shall be excluded | ||||||
| 8 | from both the numerator and the denominator of the | ||||||
| 9 | sales factor. | ||||||
| 10 | (B-2) Gross receipts from the license, sale, or other | ||||||
| 11 | disposition of patents, copyrights, trademarks, and | ||||||
| 12 | similar items of intangible personal property, other than | ||||||
| 13 | gross receipts governed by paragraph (B-7) of this item | ||||||
| 14 | (3), may be included in the numerator or denominator of | ||||||
| 15 | the sales factor only if gross receipts from licenses, | ||||||
| 16 | sales, or other disposition of such items comprise more | ||||||
| 17 | than 50% of the taxpayer's total gross receipts included | ||||||
| 18 | in gross income during the tax year and during each of the | ||||||
| 19 | 2 immediately preceding tax years; provided that, when a | ||||||
| 20 | taxpayer is a member of a unitary business group, such | ||||||
| 21 | determination shall be made on the basis of the gross | ||||||
| 22 | receipts of the entire unitary business group. | ||||||
| 23 | (B-5) For taxable years ending on or after December | ||||||
| 24 | 31, 2008, except as provided in subsections (ii) through | ||||||
| 25 | (vii), receipts from the sale of telecommunications | ||||||
| 26 | service or mobile telecommunications service are in this | ||||||
| |||||||
| |||||||
| 1 | State if the customer's service address is in this State. | ||||||
| 2 | (i) For purposes of this subparagraph (B-5), the | ||||||
| 3 | following terms have the following meanings: | ||||||
| 4 | "Ancillary services" means services that are | ||||||
| 5 | associated with or incidental to the provision of | ||||||
| 6 | "telecommunications services", including, but not | ||||||
| 7 | limited to, "detailed telecommunications billing", | ||||||
| 8 | "directory assistance", "vertical service", and "voice | ||||||
| 9 | mail services". | ||||||
| 10 | "Air-to-Ground Radiotelephone service" means a | ||||||
| 11 | radio service, as that term is defined in 47 CFR 22.99, | ||||||
| 12 | in which common carriers are authorized to offer and | ||||||
| 13 | provide radio telecommunications service for hire to | ||||||
| 14 | subscribers in aircraft. | ||||||
| 15 | "Call-by-call Basis" means any method of charging | ||||||
| 16 | for telecommunications services where the price is | ||||||
| 17 | measured by individual calls. | ||||||
| 18 | "Communications Channel" means a physical or | ||||||
| 19 | virtual path of communications over which signals are | ||||||
| 20 | transmitted between or among customer channel | ||||||
| 21 | termination points. | ||||||
| 22 | "Conference bridging service" means an "ancillary | ||||||
| 23 | service" that links two or more participants of an | ||||||
| 24 | audio or video conference call and may include the | ||||||
| 25 | provision of a telephone number. "Conference bridging | ||||||
| 26 | service" does not include the "telecommunications | ||||||
| |||||||
| |||||||
| 1 | services" used to reach the conference bridge. | ||||||
| 2 | "Customer Channel Termination Point" means the | ||||||
| 3 | location where the customer either inputs or receives | ||||||
| 4 | the communications. | ||||||
| 5 | "Detailed telecommunications billing service" | ||||||
| 6 | means an "ancillary service" of separately stating | ||||||
| 7 | information pertaining to individual calls on a | ||||||
| 8 | customer's billing statement. | ||||||
| 9 | "Directory assistance" means an "ancillary | ||||||
| 10 | service" of providing telephone number information, | ||||||
| 11 | and/or address information. | ||||||
| 12 | "Home service provider" means the facilities based | ||||||
| 13 | carrier or reseller with which the customer contracts | ||||||
| 14 | for the provision of mobile telecommunications | ||||||
| 15 | services. | ||||||
| 16 | "Mobile telecommunications service" means | ||||||
| 17 | commercial mobile radio service, as defined in Section | ||||||
| 18 | 20.3 of Title 47 of the Code of Federal Regulations as | ||||||
| 19 | in effect on June 1, 1999. | ||||||
| 20 | "Place of primary use" means the street address | ||||||
| 21 | representative of where the customer's use of the | ||||||
| 22 | telecommunications service primarily occurs, which | ||||||
| 23 | must be the residential street address or the primary | ||||||
| 24 | business street address of the customer. In the case | ||||||
| 25 | of mobile telecommunications services, "place of | ||||||
| 26 | primary use" must be within the licensed service area | ||||||
| |||||||
| |||||||
| 1 | of the home service provider. | ||||||
| 2 | "Post-paid telecommunication service" means the | ||||||
| 3 | telecommunications service obtained by making a | ||||||
| 4 | payment on a call-by-call basis either through the use | ||||||
| 5 | of a credit card or payment mechanism such as a bank | ||||||
| 6 | card, travel card, credit card, or debit card, or by | ||||||
| 7 | charge made to a telephone number which is not | ||||||
| 8 | associated with the origination or termination of the | ||||||
| 9 | telecommunications service. A post-paid calling | ||||||
| 10 | service includes telecommunications service, except a | ||||||
| 11 | prepaid wireless calling service, that would be a | ||||||
| 12 | prepaid calling service except it is not exclusively a | ||||||
| 13 | telecommunication service. | ||||||
| 14 | "Prepaid telecommunication service" means the | ||||||
| 15 | right to access exclusively telecommunications | ||||||
| 16 | services, which must be paid for in advance and which | ||||||
| 17 | enables the origination of calls using an access | ||||||
| 18 | number or authorization code, whether manually or | ||||||
| 19 | electronically dialed, and that is sold in | ||||||
| 20 | predetermined units or dollars of which the number | ||||||
| 21 | declines with use in a known amount. | ||||||
| 22 | "Prepaid Mobile telecommunication service" means a | ||||||
| 23 | telecommunications service that provides the right to | ||||||
| 24 | utilize mobile wireless service as well as other | ||||||
| 25 | non-telecommunication services, including, but not | ||||||
| 26 | limited to, ancillary services, which must be paid for | ||||||
| |||||||
| |||||||
| 1 | in advance that is sold in predetermined units or | ||||||
| 2 | dollars of which the number declines with use in a | ||||||
| 3 | known amount. | ||||||
| 4 | "Private communication service" means a | ||||||
| 5 | telecommunication service that entitles the customer | ||||||
| 6 | to exclusive or priority use of a communications | ||||||
| 7 | channel or group of channels between or among | ||||||
| 8 | termination points, regardless of the manner in which | ||||||
| 9 | such channel or channels are connected, and includes | ||||||
| 10 | switching capacity, extension lines, stations, and any | ||||||
| 11 | other associated services that are provided in | ||||||
| 12 | connection with the use of such channel or channels. | ||||||
| 13 | "Service address" means: | ||||||
| 14 | (a) The location of the telecommunications | ||||||
| 15 | equipment to which a customer's call is charged | ||||||
| 16 | and from which the call originates or terminates, | ||||||
| 17 | regardless of where the call is billed or paid; | ||||||
| 18 | (b) If the location in line (a) is not known, | ||||||
| 19 | service address means the origination point of the | ||||||
| 20 | signal of the telecommunications services first | ||||||
| 21 | identified by either the seller's | ||||||
| 22 | telecommunications system or in information | ||||||
| 23 | received by the seller from its service provider | ||||||
| 24 | where the system used to transport such signals is | ||||||
| 25 | not that of the seller; and | ||||||
| 26 | (c) If the locations in line (a) and line (b) | ||||||
| |||||||
| |||||||
| 1 | are not known, the service address means the | ||||||
| 2 | location of the customer's place of primary use. | ||||||
| 3 | "Telecommunications service" means the electronic | ||||||
| 4 | transmission, conveyance, or routing of voice, data, | ||||||
| 5 | audio, video, or any other information or signals to a | ||||||
| 6 | point, or between or among points. The term | ||||||
| 7 | "telecommunications service" includes such | ||||||
| 8 | transmission, conveyance, or routing in which computer | ||||||
| 9 | processing applications are used to act on the form, | ||||||
| 10 | code or protocol of the content for purposes of | ||||||
| 11 | transmission, conveyance or routing without regard to | ||||||
| 12 | whether such service is referred to as voice over | ||||||
| 13 | Internet protocol services or is classified by the | ||||||
| 14 | Federal Communications Commission as enhanced or value | ||||||
| 15 | added. "Telecommunications service" does not include: | ||||||
| 16 | (a) Data processing and information services | ||||||
| 17 | that allow data to be generated, acquired, stored, | ||||||
| 18 | processed, or retrieved and delivered by an | ||||||
| 19 | electronic transmission to a purchaser when such | ||||||
| 20 | purchaser's primary purpose for the underlying | ||||||
| 21 | transaction is the processed data or information; | ||||||
| 22 | (b) Installation or maintenance of wiring or | ||||||
| 23 | equipment on a customer's premises; | ||||||
| 24 | (c) Tangible personal property; | ||||||
| 25 | (d) Advertising, including, but not limited | ||||||
| 26 | to, directory advertising; | ||||||
| |||||||
| |||||||
| 1 | (e) Billing and collection services provided | ||||||
| 2 | to third parties; | ||||||
| 3 | (f) Internet access service; | ||||||
| 4 | (g) Radio and television audio and video | ||||||
| 5 | programming services, regardless of the medium, | ||||||
| 6 | including the furnishing of transmission, | ||||||
| 7 | conveyance and routing of such services by the | ||||||
| 8 | programming service provider. Radio and television | ||||||
| 9 | audio and video programming services shall | ||||||
| 10 | include, but not be limited to, cable service as | ||||||
| 11 | defined in 47 USC 522(6) and audio and video | ||||||
| 12 | programming services delivered by commercial | ||||||
| 13 | mobile radio service providers, as defined in 47 | ||||||
| 14 | CFR 20.3; | ||||||
| 15 | (h) "Ancillary services"; or | ||||||
| 16 | (i) Digital products "delivered | ||||||
| 17 | electronically", including, but not limited to, | ||||||
| 18 | software, music, video, reading materials or ring | ||||||
| 19 | tones. | ||||||
| 20 | "Vertical service" means an "ancillary service" | ||||||
| 21 | that is offered in connection with one or more | ||||||
| 22 | "telecommunications services", which offers advanced | ||||||
| 23 | calling features that allow customers to identify | ||||||
| 24 | callers and to manage multiple calls and call | ||||||
| 25 | connections, including "conference bridging services". | ||||||
| 26 | "Voice mail service" means an "ancillary service" | ||||||
| |||||||
| |||||||
| 1 | that enables the customer to store, send or receive | ||||||
| 2 | recorded messages. "Voice mail service" does not | ||||||
| 3 | include any "vertical services" that the customer may | ||||||
| 4 | be required to have in order to utilize the "voice mail | ||||||
| 5 | service". | ||||||
| 6 | (ii) Receipts from the sale of telecommunications | ||||||
| 7 | service sold on an individual call-by-call basis are | ||||||
| 8 | in this State if either of the following applies: | ||||||
| 9 | (a) The call both originates and terminates in | ||||||
| 10 | this State. | ||||||
| 11 | (b) The call either originates or terminates | ||||||
| 12 | in this State and the service address is located | ||||||
| 13 | in this State. | ||||||
| 14 | (iii) Receipts from the sale of postpaid | ||||||
| 15 | telecommunications service at retail are in this State | ||||||
| 16 | if the origination point of the telecommunication | ||||||
| 17 | signal, as first identified by the service provider's | ||||||
| 18 | telecommunication system or as identified by | ||||||
| 19 | information received by the seller from its service | ||||||
| 20 | provider if the system used to transport | ||||||
| 21 | telecommunication signals is not the seller's, is | ||||||
| 22 | located in this State. | ||||||
| 23 | (iv) Receipts from the sale of prepaid | ||||||
| 24 | telecommunications service or prepaid mobile | ||||||
| 25 | telecommunications service at retail are in this State | ||||||
| 26 | if the purchaser obtains the prepaid card or similar | ||||||
| |||||||
| |||||||
| 1 | means of conveyance at a location in this State. | ||||||
| 2 | Receipts from recharging a prepaid telecommunications | ||||||
| 3 | service or mobile telecommunications service is in | ||||||
| 4 | this State if the purchaser's billing information | ||||||
| 5 | indicates a location in this State. | ||||||
| 6 | (v) Receipts from the sale of private | ||||||
| 7 | communication services are in this State as follows: | ||||||
| 8 | (a) 100% of receipts from charges imposed at | ||||||
| 9 | each channel termination point in this State. | ||||||
| 10 | (b) 100% of receipts from charges for the | ||||||
| 11 | total channel mileage between each channel | ||||||
| 12 | termination point in this State. | ||||||
| 13 | (c) 50% of the total receipts from charges for | ||||||
| 14 | service segments when those segments are between 2 | ||||||
| 15 | customer channel termination points, 1 of which is | ||||||
| 16 | located in this State and the other is located | ||||||
| 17 | outside of this State, which segments are | ||||||
| 18 | separately charged. | ||||||
| 19 | (d) The receipts from charges for service | ||||||
| 20 | segments with a channel termination point located | ||||||
| 21 | in this State and in two or more other states, and | ||||||
| 22 | which segments are not separately billed, are in | ||||||
| 23 | this State based on a percentage determined by | ||||||
| 24 | dividing the number of customer channel | ||||||
| 25 | termination points in this State by the total | ||||||
| 26 | number of customer channel termination points. | ||||||
| |||||||
| |||||||
| 1 | (vi) Receipts from charges for ancillary services | ||||||
| 2 | for telecommunications service sold to customers at | ||||||
| 3 | retail are in this State if the customer's primary | ||||||
| 4 | place of use of telecommunications services associated | ||||||
| 5 | with those ancillary services is in this State. If the | ||||||
| 6 | seller of those ancillary services cannot determine | ||||||
| 7 | where the associated telecommunications are located, | ||||||
| 8 | then the ancillary services shall be based on the | ||||||
| 9 | location of the purchaser. | ||||||
| 10 | (vii) Receipts to access a carrier's network or | ||||||
| 11 | from the sale of telecommunication services or | ||||||
| 12 | ancillary services for resale are in this State as | ||||||
| 13 | follows: | ||||||
| 14 | (a) 100% of the receipts from access fees | ||||||
| 15 | attributable to intrastate telecommunications | ||||||
| 16 | service that both originates and terminates in | ||||||
| 17 | this State. | ||||||
| 18 | (b) 50% of the receipts from access fees | ||||||
| 19 | attributable to interstate telecommunications | ||||||
| 20 | service if the interstate call either originates | ||||||
| 21 | or terminates in this State. | ||||||
| 22 | (c) 100% of the receipts from interstate end | ||||||
| 23 | user access line charges, if the customer's | ||||||
| 24 | service address is in this State. As used in this | ||||||
| 25 | subdivision, "interstate end user access line | ||||||
| 26 | charges" includes, but is not limited to, the | ||||||
| |||||||
| |||||||
| 1 | surcharge approved by the federal communications | ||||||
| 2 | commission and levied pursuant to 47 CFR 69. | ||||||
| 3 | (d) Gross receipts from sales of | ||||||
| 4 | telecommunication services or from ancillary | ||||||
| 5 | services for telecommunications services sold to | ||||||
| 6 | other telecommunication service providers for | ||||||
| 7 | resale shall be sourced to this State using the | ||||||
| 8 | apportionment concepts used for non-resale | ||||||
| 9 | receipts of telecommunications services if the | ||||||
| 10 | information is readily available to make that | ||||||
| 11 | determination. If the information is not readily | ||||||
| 12 | available, then the taxpayer may use any other | ||||||
| 13 | reasonable and consistent method. | ||||||
| 14 | (B-7) For taxable years ending on or after December | ||||||
| 15 | 31, 2008, receipts from the sale of broadcasting services | ||||||
| 16 | are in this State if the broadcasting services are | ||||||
| 17 | received in this State. For purposes of this paragraph | ||||||
| 18 | (B-7), the following terms have the following meanings: | ||||||
| 19 | "Advertising revenue" means consideration received | ||||||
| 20 | by the taxpayer in exchange for broadcasting services | ||||||
| 21 | or allowing the broadcasting of commercials or | ||||||
| 22 | announcements in connection with the broadcasting of | ||||||
| 23 | film or radio programming, from sponsorships of the | ||||||
| 24 | programming, or from product placements in the | ||||||
| 25 | programming. | ||||||
| 26 | "Audience factor" means the ratio that the | ||||||
| |||||||
| |||||||
| 1 | audience or subscribers located in this State of a | ||||||
| 2 | station, a network, or a cable system bears to the | ||||||
| 3 | total audience or total subscribers for that station, | ||||||
| 4 | network, or cable system. The audience factor for film | ||||||
| 5 | or radio programming shall be determined by reference | ||||||
| 6 | to the books and records of the taxpayer or by | ||||||
| 7 | reference to published rating statistics provided the | ||||||
| 8 | method used by the taxpayer is consistently used from | ||||||
| 9 | year to year for this purpose and fairly represents | ||||||
| 10 | the taxpayer's activity in this State. | ||||||
| 11 | "Broadcast" or "broadcasting" or "broadcasting | ||||||
| 12 | services" means the transmission or provision of film | ||||||
| 13 | or radio programming, whether through the public | ||||||
| 14 | airwaves, by cable, by direct or indirect satellite | ||||||
| 15 | transmission, or by any other means of communication, | ||||||
| 16 | either through a station, a network, or a cable | ||||||
| 17 | system. | ||||||
| 18 | "Film" or "film programming" means the broadcast | ||||||
| 19 | on television of any and all performances, events, or | ||||||
| 20 | productions, including, but not limited to, news, | ||||||
| 21 | sporting events, plays, stories, or other literary, | ||||||
| 22 | commercial, educational, or artistic works, either | ||||||
| 23 | live or through the use of video tape, disc, or any | ||||||
| 24 | other type of format or medium. Each episode of a | ||||||
| 25 | series of films produced for television shall | ||||||
| 26 | constitute separate "film" notwithstanding that the | ||||||
| |||||||
| |||||||
| 1 | series relates to the same principal subject and is | ||||||
| 2 | produced during one or more tax periods. | ||||||
| 3 | "Radio" or "radio programming" means the broadcast | ||||||
| 4 | on radio of any and all performances, events, or | ||||||
| 5 | productions, including, but not limited to, news, | ||||||
| 6 | sporting events, plays, stories, or other literary, | ||||||
| 7 | commercial, educational, or artistic works, either | ||||||
| 8 | live or through the use of an audio tape, disc, or any | ||||||
| 9 | other format or medium. Each episode in a series of | ||||||
| 10 | radio programming produced for radio broadcast shall | ||||||
| 11 | constitute a separate "radio programming" | ||||||
| 12 | notwithstanding that the series relates to the same | ||||||
| 13 | principal subject and is produced during one or more | ||||||
| 14 | tax periods. | ||||||
| 15 | (i) In the case of advertising revenue from | ||||||
| 16 | broadcasting, the customer is the advertiser and | ||||||
| 17 | the service is received in this State if the | ||||||
| 18 | commercial domicile of the advertiser is in this | ||||||
| 19 | State. | ||||||
| 20 | (ii) In the case where film or radio | ||||||
| 21 | programming is broadcast by a station, a network, | ||||||
| 22 | or a cable system for a fee or other remuneration | ||||||
| 23 | received from the recipient of the broadcast, the | ||||||
| 24 | portion of the service that is received in this | ||||||
| 25 | State is measured by the portion of the recipients | ||||||
| 26 | of the broadcast located in this State. | ||||||
| |||||||
| |||||||
| 1 | Accordingly, the fee or other remuneration for | ||||||
| 2 | such service that is included in the Illinois | ||||||
| 3 | numerator of the sales factor is the total of | ||||||
| 4 | those fees or other remuneration received from | ||||||
| 5 | recipients in Illinois. For purposes of this | ||||||
| 6 | paragraph, a taxpayer may determine the location | ||||||
| 7 | of the recipients of its broadcast using the | ||||||
| 8 | address of the recipient shown in its contracts | ||||||
| 9 | with the recipient or using the billing address of | ||||||
| 10 | the recipient in the taxpayer's records. | ||||||
| 11 | (iii) In the case where film or radio | ||||||
| 12 | programming is broadcast by a station, a network, | ||||||
| 13 | or a cable system for a fee or other remuneration | ||||||
| 14 | from the person providing the programming, the | ||||||
| 15 | portion of the broadcast service that is received | ||||||
| 16 | by such station, network, or cable system in this | ||||||
| 17 | State is measured by the portion of recipients of | ||||||
| 18 | the broadcast located in this State. Accordingly, | ||||||
| 19 | the amount of revenue related to such an | ||||||
| 20 | arrangement that is included in the Illinois | ||||||
| 21 | numerator of the sales factor is the total fee or | ||||||
| 22 | other total remuneration from the person providing | ||||||
| 23 | the programming related to that broadcast | ||||||
| 24 | multiplied by the Illinois audience factor for | ||||||
| 25 | that broadcast. | ||||||
| 26 | (iv) In the case where film or radio | ||||||
| |||||||
| |||||||
| 1 | programming is provided by a taxpayer that is a | ||||||
| 2 | network or station to a customer for broadcast in | ||||||
| 3 | exchange for a fee or other remuneration from that | ||||||
| 4 | customer the broadcasting service is received at | ||||||
| 5 | the location of the office of the customer from | ||||||
| 6 | which the services were ordered in the regular | ||||||
| 7 | course of the customer's trade or business. | ||||||
| 8 | Accordingly, in such a case the revenue derived by | ||||||
| 9 | the taxpayer that is included in the taxpayer's | ||||||
| 10 | Illinois numerator of the sales factor is the | ||||||
| 11 | revenue from such customers who receive the | ||||||
| 12 | broadcasting service in Illinois. | ||||||
| 13 | (v) In the case where film or radio | ||||||
| 14 | programming is provided by a taxpayer that is not | ||||||
| 15 | a network or station to another person for | ||||||
| 16 | broadcasting in exchange for a fee or other | ||||||
| 17 | remuneration from that person, the broadcasting | ||||||
| 18 | service is received at the location of the office | ||||||
| 19 | of the customer from which the services were | ||||||
| 20 | ordered in the regular course of the customer's | ||||||
| 21 | trade or business. Accordingly, in such a case the | ||||||
| 22 | revenue derived by the taxpayer that is included | ||||||
| 23 | in the taxpayer's Illinois numerator of the sales | ||||||
| 24 | factor is the revenue from such customers who | ||||||
| 25 | receive the broadcasting service in Illinois. | ||||||
| 26 | (B-8) Gross receipts from winnings under the Illinois | ||||||
| |||||||
| |||||||
| 1 | Lottery Law from the assignment of a prize under Section | ||||||
| 2 | 13.1 of the Illinois Lottery Law are received in this | ||||||
| 3 | State. This paragraph (B-8) applies only to taxable years | ||||||
| 4 | ending on or after December 31, 2013. | ||||||
| 5 | (B-9) For taxable years ending on or after December | ||||||
| 6 | 31, 2019, gross receipts from winnings from pari-mutuel | ||||||
| 7 | wagering conducted at a wagering facility licensed under | ||||||
| 8 | the Illinois Horse Racing Act of 1975 or from winnings | ||||||
| 9 | from gambling games conducted on a riverboat or in a | ||||||
| 10 | casino or organization gaming facility licensed under the | ||||||
| 11 | Illinois Gambling Act are in this State. | ||||||
| 12 | (B-10) For taxable years ending on or after December | ||||||
| 13 | 31, 2021, gross receipts from winnings from sports | ||||||
| 14 | wagering conducted in accordance with the Sports Wagering | ||||||
| 15 | Act are in this State. | ||||||
| 16 | (C) For taxable years ending before December 31, 2008, | ||||||
| 17 | sales, other than sales governed by paragraphs (B), (B-1), | ||||||
| 18 | (B-2), and (B-8) are in this State if: | ||||||
| 19 | (i) The income-producing activity is performed in | ||||||
| 20 | this State; or | ||||||
| 21 | (ii) The income-producing activity is performed | ||||||
| 22 | both within and without this State and a greater | ||||||
| 23 | proportion of the income-producing activity is | ||||||
| 24 | performed within this State than without this State, | ||||||
| 25 | based on performance costs. | ||||||
| 26 | (C-5) For taxable years ending on or after December | ||||||
| |||||||
| |||||||
| 1 | 31, 2008, sales, other than sales governed by paragraphs | ||||||
| 2 | (B), (B-1), (B-2), (B-5), and (B-7), are in this State if | ||||||
| 3 | any of the following criteria are met: | ||||||
| 4 | (i) Sales from the sale or lease of real property | ||||||
| 5 | are in this State if the property is located in this | ||||||
| 6 | State. | ||||||
| 7 | (ii) Sales from the lease or rental of tangible | ||||||
| 8 | personal property are in this State if the property is | ||||||
| 9 | located in this State during the rental period. Sales | ||||||
| 10 | from the lease or rental of tangible personal property | ||||||
| 11 | that is characteristically moving property, including, | ||||||
| 12 | but not limited to, motor vehicles, rolling stock, | ||||||
| 13 | aircraft, vessels, or mobile equipment are in this | ||||||
| 14 | State to the extent that the property is used in this | ||||||
| 15 | State. | ||||||
| 16 | (iii) In the case of interest, net gains (but not | ||||||
| 17 | less than zero) and other items of income from | ||||||
| 18 | intangible personal property, the sale is in this | ||||||
| 19 | State if: | ||||||
| 20 | (a) in the case of a taxpayer who is a dealer | ||||||
| 21 | in the item of intangible personal property within | ||||||
| 22 | the meaning of Section 475 of the Internal Revenue | ||||||
| 23 | Code, the income or gain is received from a | ||||||
| 24 | customer in this State. For purposes of this | ||||||
| 25 | subparagraph, a customer is in this State if the | ||||||
| 26 | customer is an individual, trust or estate who is | ||||||
| |||||||
| |||||||
| 1 | a resident of this State and, for all other | ||||||
| 2 | customers, if the customer's commercial domicile | ||||||
| 3 | is in this State. Unless the dealer has actual | ||||||
| 4 | knowledge of the residence or commercial domicile | ||||||
| 5 | of a customer during a taxable year, the customer | ||||||
| 6 | shall be deemed to be a customer in this State if | ||||||
| 7 | the billing address of the customer, as shown in | ||||||
| 8 | the records of the dealer, is in this State; or | ||||||
| 9 | (b) in all other cases, if the | ||||||
| 10 | income-producing activity of the taxpayer is | ||||||
| 11 | performed in this State or, if the | ||||||
| 12 | income-producing activity of the taxpayer is | ||||||
| 13 | performed both within and without this State, if a | ||||||
| 14 | greater proportion of the income-producing | ||||||
| 15 | activity of the taxpayer is performed within this | ||||||
| 16 | State than in any other state, based on | ||||||
| 17 | performance costs. | ||||||
| 18 | (iv) Sales of services are in this State if the | ||||||
| 19 | services are received in this State. For the purposes | ||||||
| 20 | of this section, gross receipts from the performance | ||||||
| 21 | of services provided to a corporation, partnership, or | ||||||
| 22 | trust may only be attributed to a state where that | ||||||
| 23 | corporation, partnership, or trust has a fixed place | ||||||
| 24 | of business. If the state where the services are | ||||||
| 25 | received is not readily determinable or is a state | ||||||
| 26 | where the corporation, partnership, or trust receiving | ||||||
| |||||||
| |||||||
| 1 | the service does not have a fixed place of business, | ||||||
| 2 | the services shall be deemed to be received at the | ||||||
| 3 | location of the office of the customer from which the | ||||||
| 4 | services were ordered in the regular course of the | ||||||
| 5 | customer's trade or business. If the ordering office | ||||||
| 6 | cannot be determined, the services shall be deemed to | ||||||
| 7 | be received at the office of the customer to which the | ||||||
| 8 | services are billed. If the taxpayer is not taxable in | ||||||
| 9 | the state in which the services are received, the sale | ||||||
| 10 | must be excluded from both the numerator and the | ||||||
| 11 | denominator of the sales factor. The Department shall | ||||||
| 12 | adopt rules prescribing where specific types of | ||||||
| 13 | service are received, including, but not limited to, | ||||||
| 14 | publishing, and utility service. | ||||||
| 15 | (D) For taxable years ending on or after December 31, | ||||||
| 16 | 1995, the following items of income shall not be included | ||||||
| 17 | in the numerator or denominator of the sales factor: | ||||||
| 18 | dividends; amounts included under Section 78 of the | ||||||
| 19 | Internal Revenue Code; and Subpart F income as defined in | ||||||
| 20 | Section 952 of the Internal Revenue Code. No inference | ||||||
| 21 | shall be drawn from the enactment of this paragraph (D) in | ||||||
| 22 | construing this Section for taxable years ending before | ||||||
| 23 | December 31, 1995. | ||||||
| 24 | (E) Paragraphs (B-1) and (B-2) shall apply to tax | ||||||
| 25 | years ending on or after December 31, 1999, provided that | ||||||
| 26 | a taxpayer may elect to apply the provisions of these | ||||||
| |||||||
| |||||||
| 1 | paragraphs to prior tax years. Such election shall be made | ||||||
| 2 | in the form and manner prescribed by the Department, shall | ||||||
| 3 | be irrevocable, and shall apply to all tax years; provided | ||||||
| 4 | that, if a taxpayer's Illinois income tax liability for | ||||||
| 5 | any tax year, as assessed under Section 903 prior to | ||||||
| 6 | January 1, 1999, was computed in a manner contrary to the | ||||||
| 7 | provisions of paragraphs (B-1) or (B-2), no refund shall | ||||||
| 8 | be payable to the taxpayer for that tax year to the extent | ||||||
| 9 | such refund is the result of applying the provisions of | ||||||
| 10 | paragraph (B-1) or (B-2) retroactively. In the case of a | ||||||
| 11 | unitary business group, such election shall apply to all | ||||||
| 12 | members of such group for every tax year such group is in | ||||||
| 13 | existence, but shall not apply to any taxpayer for any | ||||||
| 14 | period during which that taxpayer is not a member of such | ||||||
| 15 | group. | ||||||
| 16 | (b) Insurance companies. | ||||||
| 17 | (1) In general. Except as otherwise provided by | ||||||
| 18 | paragraph (2), business income of an insurance company for | ||||||
| 19 | a taxable year shall be apportioned to this State by | ||||||
| 20 | multiplying such income by a fraction, the numerator of | ||||||
| 21 | which is the direct premiums written for insurance upon | ||||||
| 22 | property or risk in this State, and the denominator of | ||||||
| 23 | which is the direct premiums written for insurance upon | ||||||
| 24 | property or risk everywhere. For purposes of this | ||||||
| 25 | subsection, the term "direct premiums written" means the | ||||||
| 26 | total amount of direct premiums written, assessments and | ||||||
| |||||||
| |||||||
| 1 | annuity considerations as reported for the taxable year on | ||||||
| 2 | the annual statement filed by the company with the | ||||||
| 3 | Illinois Director of Insurance in the form approved by the | ||||||
| 4 | National Convention of Insurance Commissioners or such | ||||||
| 5 | other form as may be prescribed in lieu thereof. | ||||||
| 6 | (2) Reinsurance. If the principal source of premiums | ||||||
| 7 | written by an insurance company consists of premiums for | ||||||
| 8 | reinsurance accepted by it, the business income of such | ||||||
| 9 | company shall be apportioned to this State by multiplying | ||||||
| 10 | such income by a fraction, the numerator of which is the | ||||||
| 11 | sum of (i) direct premiums written for insurance upon | ||||||
| 12 | property or risk in this State, plus (ii) premiums written | ||||||
| 13 | for reinsurance accepted in respect of property or risk in | ||||||
| 14 | this State, and the denominator of which is the sum of | ||||||
| 15 | (iii) direct premiums written for insurance upon property | ||||||
| 16 | or risk everywhere, plus (iv) premiums written for | ||||||
| 17 | reinsurance accepted in respect of property or risk | ||||||
| 18 | everywhere. For purposes of this paragraph, premiums | ||||||
| 19 | written for reinsurance accepted in respect of property or | ||||||
| 20 | risk in this State, whether or not otherwise determinable, | ||||||
| 21 | may, at the election of the company, be determined on the | ||||||
| 22 | basis of the proportion which premiums written for | ||||||
| 23 | reinsurance accepted from companies commercially domiciled | ||||||
| 24 | in Illinois bears to premiums written for reinsurance | ||||||
| 25 | accepted from all sources, or, alternatively, in the | ||||||
| 26 | proportion which the sum of the direct premiums written | ||||||
| |||||||
| |||||||
| 1 | for insurance upon property or risk in this State by each | ||||||
| 2 | ceding company from which reinsurance is accepted bears to | ||||||
| 3 | the sum of the total direct premiums written by each such | ||||||
| 4 | ceding company for the taxable year. The election made by | ||||||
| 5 | a company under this paragraph for its first taxable year | ||||||
| 6 | ending on or after December 31, 2011, shall be binding for | ||||||
| 7 | that company for that taxable year and for all subsequent | ||||||
| 8 | taxable years, and may be altered only with the written | ||||||
| 9 | permission of the Department, which shall not be | ||||||
| 10 | unreasonably withheld. | ||||||
| 11 | (c) Financial organizations. | ||||||
| 12 | (1) In general. For taxable years ending before | ||||||
| 13 | December 31, 2008, business income of a financial | ||||||
| 14 | organization shall be apportioned to this State by | ||||||
| 15 | multiplying such income by a fraction, the numerator of | ||||||
| 16 | which is its business income from sources within this | ||||||
| 17 | State, and the denominator of which is its business income | ||||||
| 18 | from all sources. For the purposes of this subsection, the | ||||||
| 19 | business income of a financial organization from sources | ||||||
| 20 | within this State is the sum of the amounts referred to in | ||||||
| 21 | subparagraphs (A) through (E) following, but excluding the | ||||||
| 22 | adjusted income of an international banking facility as | ||||||
| 23 | determined in paragraph (2): | ||||||
| 24 | (A) Fees, commissions or other compensation for | ||||||
| 25 | financial services rendered within this State; | ||||||
| 26 | (B) Gross profits from trading in stocks, bonds or | ||||||
| |||||||
| |||||||
| 1 | other securities managed within this State; | ||||||
| 2 | (C) Dividends, and interest from Illinois | ||||||
| 3 | customers, which are received within this State; | ||||||
| 4 | (D) Interest charged to customers at places of | ||||||
| 5 | business maintained within this State for carrying | ||||||
| 6 | debit balances of margin accounts, without deduction | ||||||
| 7 | of any costs incurred in carrying such accounts; and | ||||||
| 8 | (E) Any other gross income resulting from the | ||||||
| 9 | operation as a financial organization within this | ||||||
| 10 | State. | ||||||
| 11 | In computing the amounts referred to in paragraphs (A) | ||||||
| 12 | through (E) of this subsection, any amount received by a | ||||||
| 13 | member of an affiliated group (determined under Section | ||||||
| 14 | 1504(a) of the Internal Revenue Code but without reference | ||||||
| 15 | to whether any such corporation is an "includible | ||||||
| 16 | corporation" under Section 1504(b) of the Internal Revenue | ||||||
| 17 | Code) from another member of such group shall be included | ||||||
| 18 | only to the extent such amount exceeds expenses of the | ||||||
| 19 | recipient directly related thereto. | ||||||
| 20 | (2) International Banking Facility. For taxable years | ||||||
| 21 | ending before December 31, 2008: | ||||||
| 22 | (A) Adjusted Income. The adjusted income of an | ||||||
| 23 | international banking facility is its income reduced | ||||||
| 24 | by the amount of the floor amount. | ||||||
| 25 | (B) Floor Amount. The floor amount shall be the | ||||||
| 26 | amount, if any, determined by multiplying the income | ||||||
| |||||||
| |||||||
| 1 | of the international banking facility by a fraction, | ||||||
| 2 | not greater than one, which is determined as follows: | ||||||
| 3 | (i) The numerator shall be: | ||||||
| 4 | The average aggregate, determined on a | ||||||
| 5 | quarterly basis, of the financial organization's | ||||||
| 6 | loans to banks in foreign countries, to foreign | ||||||
| 7 | domiciled borrowers (except where secured | ||||||
| 8 | primarily by real estate) and to foreign | ||||||
| 9 | governments and other foreign official | ||||||
| 10 | institutions, as reported for its branches, | ||||||
| 11 | agencies and offices within the state on its | ||||||
| 12 | "Consolidated Report of Condition", Schedule A, | ||||||
| 13 | Lines 2.c., 5.b., and 7.a., which was filed with | ||||||
| 14 | the Federal Deposit Insurance Corporation and | ||||||
| 15 | other regulatory authorities, for the year 1980, | ||||||
| 16 | minus | ||||||
| 17 | The average aggregate, determined on a | ||||||
| 18 | quarterly basis, of such loans (other than loans | ||||||
| 19 | of an international banking facility), as reported | ||||||
| 20 | by the financial institution for its branches, | ||||||
| 21 | agencies and offices within the state, on the | ||||||
| 22 | corresponding Schedule and lines of the | ||||||
| 23 | Consolidated Report of Condition for the current | ||||||
| 24 | taxable year, provided, however, that in no case | ||||||
| 25 | shall the amount determined in this clause (the | ||||||
| 26 | subtrahend) exceed the amount determined in the | ||||||
| |||||||
| |||||||
| 1 | preceding clause (the minuend); and | ||||||
| 2 | (ii) the denominator shall be the average | ||||||
| 3 | aggregate, determined on a quarterly basis, of the | ||||||
| 4 | international banking facility's loans to banks in | ||||||
| 5 | foreign countries, to foreign domiciled borrowers | ||||||
| 6 | (except where secured primarily by real estate) | ||||||
| 7 | and to foreign governments and other foreign | ||||||
| 8 | official institutions, which were recorded in its | ||||||
| 9 | financial accounts for the current taxable year. | ||||||
| 10 | (C) Change to Consolidated Report of Condition and | ||||||
| 11 | in Qualification. In the event the Consolidated Report | ||||||
| 12 | of Condition which is filed with the Federal Deposit | ||||||
| 13 | Insurance Corporation and other regulatory authorities | ||||||
| 14 | is altered so that the information required for | ||||||
| 15 | determining the floor amount is not found on Schedule | ||||||
| 16 | A, lines 2.c., 5.b. and 7.a., the financial | ||||||
| 17 | institution shall notify the Department and the | ||||||
| 18 | Department may, by regulations or otherwise, prescribe | ||||||
| 19 | or authorize the use of an alternative source for such | ||||||
| 20 | information. The financial institution shall also | ||||||
| 21 | notify the Department should its international banking | ||||||
| 22 | facility fail to qualify as such, in whole or in part, | ||||||
| 23 | or should there be any amendment or change to the | ||||||
| 24 | Consolidated Report of Condition, as originally filed, | ||||||
| 25 | to the extent such amendment or change alters the | ||||||
| 26 | information used in determining the floor amount. | ||||||
| |||||||
| |||||||
| 1 | (3) For taxable years ending on or after December 31, | ||||||
| 2 | 2008, the business income of a financial organization | ||||||
| 3 | shall be apportioned to this State by multiplying such | ||||||
| 4 | income by a fraction, the numerator of which is its gross | ||||||
| 5 | receipts from sources in this State or otherwise | ||||||
| 6 | attributable to this State's marketplace and the | ||||||
| 7 | denominator of which is its gross receipts everywhere | ||||||
| 8 | during the taxable year. "Gross receipts" for purposes of | ||||||
| 9 | this subparagraph (3) means gross income, including net | ||||||
| 10 | taxable gain on disposition of assets, including | ||||||
| 11 | securities and money market instruments, when derived from | ||||||
| 12 | transactions and activities in the regular course of the | ||||||
| 13 | financial organization's trade or business. The following | ||||||
| 14 | examples are illustrative: | ||||||
| 15 | (i) Receipts from the lease or rental of real or | ||||||
| 16 | tangible personal property are in this State if the | ||||||
| 17 | property is located in this State during the rental | ||||||
| 18 | period. Receipts from the lease or rental of tangible | ||||||
| 19 | personal property that is characteristically moving | ||||||
| 20 | property, including, but not limited to, motor | ||||||
| 21 | vehicles, rolling stock, aircraft, vessels, or mobile | ||||||
| 22 | equipment are from sources in this State to the extent | ||||||
| 23 | that the property is used in this State. | ||||||
| 24 | (ii) Interest income, commissions, fees, gains on | ||||||
| 25 | disposition, and other receipts from assets in the | ||||||
| 26 | nature of loans that are secured primarily by real | ||||||
| |||||||
| |||||||
| 1 | estate or tangible personal property are from sources | ||||||
| 2 | in this State if the security is located in this State. | ||||||
| 3 | (iii) Interest income, commissions, fees, gains on | ||||||
| 4 | disposition, and other receipts from consumer loans | ||||||
| 5 | that are not secured by real or tangible personal | ||||||
| 6 | property are from sources in this State if the debtor | ||||||
| 7 | is a resident of this State. | ||||||
| 8 | (iv) Interest income, commissions, fees, gains on | ||||||
| 9 | disposition, and other receipts from commercial loans | ||||||
| 10 | and installment obligations that are not secured by | ||||||
| 11 | real or tangible personal property are from sources in | ||||||
| 12 | this State if the proceeds of the loan are to be | ||||||
| 13 | applied in this State. If it cannot be determined | ||||||
| 14 | where the funds are to be applied, the income and | ||||||
| 15 | receipts are from sources in this State if the office | ||||||
| 16 | of the borrower from which the loan was negotiated in | ||||||
| 17 | the regular course of business is located in this | ||||||
| 18 | State. If the location of this office cannot be | ||||||
| 19 | determined, the income and receipts shall be excluded | ||||||
| 20 | from the numerator and denominator of the sales | ||||||
| 21 | factor. | ||||||
| 22 | (v) Interest income, fees, gains on disposition, | ||||||
| 23 | service charges, merchant discount income, and other | ||||||
| 24 | receipts from credit card receivables are from sources | ||||||
| 25 | in this State if the card charges are regularly billed | ||||||
| 26 | to a customer in this State. | ||||||
| |||||||
| |||||||
| 1 | (vi) Receipts from the performance of services, | ||||||
| 2 | including, but not limited to, fiduciary, advisory, | ||||||
| 3 | and brokerage services, are in this State if the | ||||||
| 4 | services are received in this State within the meaning | ||||||
| 5 | of subparagraph (a)(3)(C-5)(iv) of this Section. | ||||||
| 6 | (vii) Receipts from the issuance of travelers | ||||||
| 7 | checks and money orders are from sources in this State | ||||||
| 8 | if the checks and money orders are issued from a | ||||||
| 9 | location within this State. | ||||||
| 10 | (viii) For tax years ending before December 31, | ||||||
| 11 | 2024, receipts Receipts from investment assets and | ||||||
| 12 | activities and trading assets and activities are | ||||||
| 13 | included in the receipts factor as follows: | ||||||
| 14 | (1) Interest, dividends, net gains (but not | ||||||
| 15 | less than zero) and other income from investment | ||||||
| 16 | assets and activities from trading assets and | ||||||
| 17 | activities shall be included in the receipts | ||||||
| 18 | factor. Investment assets and activities and | ||||||
| 19 | trading assets and activities include, but are not | ||||||
| 20 | limited to: investment securities; trading account | ||||||
| 21 | assets; federal funds; securities purchased and | ||||||
| 22 | sold under agreements to resell or repurchase; | ||||||
| 23 | options; futures contracts; forward contracts; | ||||||
| 24 | notional principal contracts such as swaps; | ||||||
| 25 | equities; and foreign currency transactions. With | ||||||
| 26 | respect to the investment and trading assets and | ||||||
| |||||||
| |||||||
| 1 | activities described in subparagraphs (A) and (B) | ||||||
| 2 | of this paragraph, the receipts factor shall | ||||||
| 3 | include the amounts described in such | ||||||
| 4 | subparagraphs. | ||||||
| 5 | (A) The receipts factor shall include the | ||||||
| 6 | amount by which interest from federal funds | ||||||
| 7 | sold and securities purchased under resale | ||||||
| 8 | agreements exceeds interest expense on federal | ||||||
| 9 | funds purchased and securities sold under | ||||||
| 10 | repurchase agreements. | ||||||
| 11 | (B) The receipts factor shall include the | ||||||
| 12 | amount by which interest, dividends, gains and | ||||||
| 13 | other income from trading assets and | ||||||
| 14 | activities, including, but not limited to, | ||||||
| 15 | assets and activities in the matched book, in | ||||||
| 16 | the arbitrage book, and foreign currency | ||||||
| 17 | transactions, exceed amounts paid in lieu of | ||||||
| 18 | interest, amounts paid in lieu of dividends, | ||||||
| 19 | and losses from such assets and activities. | ||||||
| 20 | (2) The numerator of the receipts factor | ||||||
| 21 | includes interest, dividends, net gains (but not | ||||||
| 22 | less than zero), and other income from investment | ||||||
| 23 | assets and activities and from trading assets and | ||||||
| 24 | activities described in paragraph (1) of this | ||||||
| 25 | subsection that are attributable to this State. | ||||||
| 26 | (A) The amount of interest, dividends, net | ||||||
| |||||||
| |||||||
| 1 | gains (but not less than zero), and other | ||||||
| 2 | income from investment assets and activities | ||||||
| 3 | in the investment account to be attributed to | ||||||
| 4 | this State and included in the numerator is | ||||||
| 5 | determined by multiplying all such income from | ||||||
| 6 | such assets and activities by a fraction, the | ||||||
| 7 | numerator of which is the gross income from | ||||||
| 8 | such assets and activities which are properly | ||||||
| 9 | assigned to a fixed place of business of the | ||||||
| 10 | taxpayer within this State and the denominator | ||||||
| 11 | of which is the gross income from all such | ||||||
| 12 | assets and activities. | ||||||
| 13 | (B) The amount of interest from federal | ||||||
| 14 | funds sold and purchased and from securities | ||||||
| 15 | purchased under resale agreements and | ||||||
| 16 | securities sold under repurchase agreements | ||||||
| 17 | attributable to this State and included in the | ||||||
| 18 | numerator is determined by multiplying the | ||||||
| 19 | amount described in subparagraph (A) of | ||||||
| 20 | paragraph (1) of this subsection from such | ||||||
| 21 | funds and such securities by a fraction, the | ||||||
| 22 | numerator of which is the gross income from | ||||||
| 23 | such funds and such securities which are | ||||||
| 24 | properly assigned to a fixed place of business | ||||||
| 25 | of the taxpayer within this State and the | ||||||
| 26 | denominator of which is the gross income from | ||||||
| |||||||
| |||||||
| 1 | all such funds and such securities. | ||||||
| 2 | (C) The amount of interest, dividends, | ||||||
| 3 | gains, and other income from trading assets | ||||||
| 4 | and activities, including, but not limited to, | ||||||
| 5 | assets and activities in the matched book, in | ||||||
| 6 | the arbitrage book and foreign currency | ||||||
| 7 | transactions (but excluding amounts described | ||||||
| 8 | in subparagraphs (A) or (B) of this | ||||||
| 9 | paragraph), attributable to this State and | ||||||
| 10 | included in the numerator is determined by | ||||||
| 11 | multiplying the amount described in | ||||||
| 12 | subparagraph (B) of paragraph (1) of this | ||||||
| 13 | subsection by a fraction, the numerator of | ||||||
| 14 | which is the gross income from such trading | ||||||
| 15 | assets and activities which are properly | ||||||
| 16 | assigned to a fixed place of business of the | ||||||
| 17 | taxpayer within this State and the denominator | ||||||
| 18 | of which is the gross income from all such | ||||||
| 19 | assets and activities. | ||||||
| 20 | (D) Properly assigned, for purposes of | ||||||
| 21 | this paragraph (2) of this subsection, means | ||||||
| 22 | the investment or trading asset or activity is | ||||||
| 23 | assigned to the fixed place of business with | ||||||
| 24 | which it has a preponderance of substantive | ||||||
| 25 | contacts. An investment or trading asset or | ||||||
| 26 | activity assigned by the taxpayer to a fixed | ||||||
| |||||||
| |||||||
| 1 | place of business without the State shall be | ||||||
| 2 | presumed to have been properly assigned if: | ||||||
| 3 | (i) the taxpayer has assigned, in the | ||||||
| 4 | regular course of its business, such asset | ||||||
| 5 | or activity on its records to a fixed | ||||||
| 6 | place of business consistent with federal | ||||||
| 7 | or state regulatory requirements; | ||||||
| 8 | (ii) such assignment on its records is | ||||||
| 9 | based upon substantive contacts of the | ||||||
| 10 | asset or activity to such fixed place of | ||||||
| 11 | business; and | ||||||
| 12 | (iii) the taxpayer uses such records | ||||||
| 13 | reflecting assignment of such assets or | ||||||
| 14 | activities for the filing of all state and | ||||||
| 15 | local tax returns for which an assignment | ||||||
| 16 | of such assets or activities to a fixed | ||||||
| 17 | place of business is required. | ||||||
| 18 | (E) The presumption of proper assignment | ||||||
| 19 | of an investment or trading asset or activity | ||||||
| 20 | provided in subparagraph (D) of paragraph (2) | ||||||
| 21 | of this subsection may be rebutted upon a | ||||||
| 22 | showing by the Department, supported by a | ||||||
| 23 | preponderance of the evidence, that the | ||||||
| 24 | preponderance of substantive contacts | ||||||
| 25 | regarding such asset or activity did not occur | ||||||
| 26 | at the fixed place of business to which it was | ||||||
| |||||||
| |||||||
| 1 | assigned on the taxpayer's records. If the | ||||||
| 2 | fixed place of business that has a | ||||||
| 3 | preponderance of substantive contacts cannot | ||||||
| 4 | be determined for an investment or trading | ||||||
| 5 | asset or activity to which the presumption in | ||||||
| 6 | subparagraph (D) of paragraph (2) of this | ||||||
| 7 | subsection does not apply or with respect to | ||||||
| 8 | which that presumption has been rebutted, that | ||||||
| 9 | asset or activity is properly assigned to the | ||||||
| 10 | state in which the taxpayer's commercial | ||||||
| 11 | domicile is located. For purposes of this | ||||||
| 12 | subparagraph (E), it shall be presumed, | ||||||
| 13 | subject to rebuttal, that taxpayer's | ||||||
| 14 | commercial domicile is in the state of the | ||||||
| 15 | United States or the District of Columbia to | ||||||
| 16 | which the greatest number of employees are | ||||||
| 17 | regularly connected with the management of the | ||||||
| 18 | investment or trading income or out of which | ||||||
| 19 | they are working, irrespective of where the | ||||||
| 20 | services of such employees are performed, as | ||||||
| 21 | of the last day of the taxable year. | ||||||
| 22 | (ix) For tax years ending on or after December 31, | ||||||
| 23 | 2024, receipts from investment assets and activities | ||||||
| 24 | and trading assets and activities are included in the | ||||||
| 25 | receipts factor as follows: | ||||||
| 26 | (1) Interest, dividends, net gains (but not | ||||||
| |||||||
| |||||||
| 1 | less than zero), and other income from investment | ||||||
| 2 | assets and activities from trading assets and | ||||||
| 3 | activities shall be included in the receipts | ||||||
| 4 | factor. Investment assets and activities and | ||||||
| 5 | trading assets and activities include, but are not | ||||||
| 6 | limited to the following: investment securities; | ||||||
| 7 | trading account assets; federal funds; securities | ||||||
| 8 | purchased and sold under agreements to resell or | ||||||
| 9 | repurchase; options; futures contracts; forward | ||||||
| 10 | contracts; notional principal contracts, such as | ||||||
| 11 | swaps; equities; and foreign currency | ||||||
| 12 | transactions. With respect to the investment and | ||||||
| 13 | trading assets and activities described in | ||||||
| 14 | subparagraphs (A) and (B) of this paragraph, the | ||||||
| 15 | receipts factor shall include the amounts | ||||||
| 16 | described in those subparagraphs. | ||||||
| 17 | (A) The receipts factor shall include the | ||||||
| 18 | amount by which interest from federal funds | ||||||
| 19 | sold and securities purchased under resale | ||||||
| 20 | agreements exceeds interest expense on federal | ||||||
| 21 | funds purchased and securities sold under | ||||||
| 22 | repurchase agreements. | ||||||
| 23 | (B) The receipts factor shall include the | ||||||
| 24 | amount by which interest, dividends, gains and | ||||||
| 25 | other income from trading assets and | ||||||
| 26 | activities, including, but not limited to, | ||||||
| |||||||
| |||||||
| 1 | assets and activities in the matched book, in | ||||||
| 2 | the arbitrage book, and foreign currency | ||||||
| 3 | transactions, exceed amounts paid in lieu of | ||||||
| 4 | interest, amounts paid in lieu of dividends, | ||||||
| 5 | and losses from such assets and activities. | ||||||
| 6 | (2) The numerator of the receipts factor | ||||||
| 7 | includes interest, dividends, net gains (but not | ||||||
| 8 | less than zero), and other income from investment | ||||||
| 9 | assets and activities and from trading assets and | ||||||
| 10 | activities described in paragraph (1) of this | ||||||
| 11 | subsection that are attributable to this State. | ||||||
| 12 | (A) The amount of interest, dividends, net | ||||||
| 13 | gains (but not less than zero), and other | ||||||
| 14 | income from investment assets and activities | ||||||
| 15 | in the investment account to be attributed to | ||||||
| 16 | this State and included in the numerator is | ||||||
| 17 | determined by multiplying all of the income | ||||||
| 18 | from those assets and activities by a | ||||||
| 19 | fraction, the numerator of which is the total | ||||||
| 20 | receipts included in the numerator pursuant to | ||||||
| 21 | items (i) through (vii) of this subparagraph | ||||||
| 22 | (3) and the denominator of which is all total | ||||||
| 23 | receipts included in the denominator, other | ||||||
| 24 | than interest, dividends, net gains (but not | ||||||
| 25 | less than zero), and other income from | ||||||
| 26 | investment assets and activities and trading | ||||||
| |||||||
| |||||||
| 1 | assets and activities. | ||||||
| 2 | (B) The amount of interest from federal | ||||||
| 3 | funds sold and purchased and from securities | ||||||
| 4 | purchased under resale agreements and | ||||||
| 5 | securities sold under repurchase agreements | ||||||
| 6 | attributable to this State and included in the | ||||||
| 7 | numerator is determined by multiplying the | ||||||
| 8 | amount described in subparagraph (A) of | ||||||
| 9 | paragraph (1) of this subsection from such | ||||||
| 10 | funds and such securities by a fraction, the | ||||||
| 11 | numerator of which is the total receipts | ||||||
| 12 | included in the numerator pursuant to items | ||||||
| 13 | (i) through (vii) of this subparagraph (3) and | ||||||
| 14 | the denominator of which is all total receipts | ||||||
| 15 | included in the denominator, other than | ||||||
| 16 | interest, dividends, net gains (but not less | ||||||
| 17 | than zero), and other income from investment | ||||||
| 18 | assets and activities and trading assets and | ||||||
| 19 | activities. | ||||||
| 20 | (C) The amount of interest, dividends, | ||||||
| 21 | gains, and other income from trading assets | ||||||
| 22 | and activities, including, but not limited to, | ||||||
| 23 | assets and activities in the matched book, in | ||||||
| 24 | the arbitrage book and foreign currency | ||||||
| 25 | transactions (but excluding amounts described | ||||||
| 26 | in subparagraphs (A) or (B) of this | ||||||
| |||||||
| |||||||
| 1 | paragraph), attributable to this State and | ||||||
| 2 | included in the numerator is determined by | ||||||
| 3 | multiplying the amount described in | ||||||
| 4 | subparagraph (B) of paragraph (1) of this | ||||||
| 5 | subsection by a fraction, the numerator of | ||||||
| 6 | which is the total receipts included in the | ||||||
| 7 | numerator pursuant to items (i) through (vii) | ||||||
| 8 | of this subparagraph (3) and the denominator | ||||||
| 9 | of which is all total receipts included in the | ||||||
| 10 | denominator, other than interest, dividends, | ||||||
| 11 | net gains (but not less than zero), and other | ||||||
| 12 | income from investment assets and activities | ||||||
| 13 | and trading assets and activities. | ||||||
| 14 | (4) (Blank). | ||||||
| 15 | (5) (Blank). | ||||||
| 16 | (c-1) Federally regulated exchanges. For taxable years | ||||||
| 17 | ending on or after December 31, 2012, business income of a | ||||||
| 18 | federally regulated exchange shall, at the option of the | ||||||
| 19 | federally regulated exchange, be apportioned to this State by | ||||||
| 20 | multiplying such income by a fraction, the numerator of which | ||||||
| 21 | is its business income from sources within this State, and the | ||||||
| 22 | denominator of which is its business income from all sources. | ||||||
| 23 | For purposes of this subsection, the business income within | ||||||
| 24 | this State of a federally regulated exchange is the sum of the | ||||||
| 25 | following: | ||||||
| 26 | (1) Receipts attributable to transactions executed on | ||||||
| |||||||
| |||||||
| 1 | a physical trading floor if that physical trading floor is | ||||||
| 2 | located in this State. | ||||||
| 3 | (2) Receipts attributable to all other matching, | ||||||
| 4 | execution, or clearing transactions, including without | ||||||
| 5 | limitation receipts from the provision of matching, | ||||||
| 6 | execution, or clearing services to another entity, | ||||||
| 7 | multiplied by (i) for taxable years ending on or after | ||||||
| 8 | December 31, 2012 but before December 31, 2013, 63.77%; | ||||||
| 9 | and (ii) for taxable years ending on or after December 31, | ||||||
| 10 | 2013, 27.54%. | ||||||
| 11 | (3) All other receipts not governed by subparagraphs | ||||||
| 12 | (1) or (2) of this subsection (c-1), to the extent the | ||||||
| 13 | receipts would be characterized as "sales in this State" | ||||||
| 14 | under item (3) of subsection (a) of this Section. | ||||||
| 15 | "Federally regulated exchange" means (i) a "registered | ||||||
| 16 | entity" within the meaning of 7 U.S.C. Section 1a(40)(A), (B), | ||||||
| 17 | or (C), (ii) an "exchange" or "clearing agency" within the | ||||||
| 18 | meaning of 15 U.S.C. Section 78c (a)(1) or (23), (iii) any such | ||||||
| 19 | entities regulated under any successor regulatory structure to | ||||||
| 20 | the foregoing, and (iv) all taxpayers who are members of the | ||||||
| 21 | same unitary business group as a federally regulated exchange, | ||||||
| 22 | determined without regard to the prohibition in Section | ||||||
| 23 | 1501(a)(27) of this Act against including in a unitary | ||||||
| 24 | business group taxpayers who are ordinarily required to | ||||||
| 25 | apportion business income under different subsections of this | ||||||
| 26 | Section; provided that this subparagraph (iv) shall apply only | ||||||
| |||||||
| |||||||
| 1 | if 50% or more of the business receipts of the unitary business | ||||||
| 2 | group determined by application of this subparagraph (iv) for | ||||||
| 3 | the taxable year are attributable to the matching, execution, | ||||||
| 4 | or clearing of transactions conducted by an entity described | ||||||
| 5 | in subparagraph (i), (ii), or (iii) of this paragraph. | ||||||
| 6 | In no event shall the Illinois apportionment percentage | ||||||
| 7 | computed in accordance with this subsection (c-1) for any | ||||||
| 8 | taxpayer for any tax year be less than the Illinois | ||||||
| 9 | apportionment percentage computed under this subsection (c-1) | ||||||
| 10 | for that taxpayer for the first full tax year ending on or | ||||||
| 11 | after December 31, 2013 for which this subsection (c-1) | ||||||
| 12 | applied to the taxpayer. | ||||||
| 13 | (d) Transportation services. For taxable years ending | ||||||
| 14 | before December 31, 2008, business income derived from | ||||||
| 15 | furnishing transportation services shall be apportioned to | ||||||
| 16 | this State in accordance with paragraphs (1) and (2): | ||||||
| 17 | (1) Such business income (other than that derived from | ||||||
| 18 | transportation by pipeline) shall be apportioned to this | ||||||
| 19 | State by multiplying such income by a fraction, the | ||||||
| 20 | numerator of which is the revenue miles of the person in | ||||||
| 21 | this State, and the denominator of which is the revenue | ||||||
| 22 | miles of the person everywhere. For purposes of this | ||||||
| 23 | paragraph, a revenue mile is the transportation of 1 | ||||||
| 24 | passenger or 1 net ton of freight the distance of 1 mile | ||||||
| 25 | for a consideration. Where a person is engaged in the | ||||||
| 26 | transportation of both passengers and freight, the | ||||||
| |||||||
| |||||||
| 1 | fraction above referred to shall be determined by means of | ||||||
| 2 | an average of the passenger revenue mile fraction and the | ||||||
| 3 | freight revenue mile fraction, weighted to reflect the | ||||||
| 4 | person's | ||||||
| 5 | (A) relative railway operating income from total | ||||||
| 6 | passenger and total freight service, as reported to | ||||||
| 7 | the Interstate Commerce Commission, in the case of | ||||||
| 8 | transportation by railroad, and | ||||||
| 9 | (B) relative gross receipts from passenger and | ||||||
| 10 | freight transportation, in case of transportation | ||||||
| 11 | other than by railroad. | ||||||
| 12 | (2) Such business income derived from transportation | ||||||
| 13 | by pipeline shall be apportioned to this State by | ||||||
| 14 | multiplying such income by a fraction, the numerator of | ||||||
| 15 | which is the revenue miles of the person in this State, and | ||||||
| 16 | the denominator of which is the revenue miles of the | ||||||
| 17 | person everywhere. For the purposes of this paragraph, a | ||||||
| 18 | revenue mile is the transportation by pipeline of 1 barrel | ||||||
| 19 | of oil, 1,000 cubic feet of gas, or of any specified | ||||||
| 20 | quantity of any other substance, the distance of 1 mile | ||||||
| 21 | for a consideration. | ||||||
| 22 | (3) For taxable years ending on or after December 31, | ||||||
| 23 | 2008, business income derived from providing | ||||||
| 24 | transportation services other than airline services shall | ||||||
| 25 | be apportioned to this State by using a fraction, (a) the | ||||||
| 26 | numerator of which shall be (i) all receipts from any | ||||||
| |||||||
| |||||||
| 1 | movement or shipment of people, goods, mail, oil, gas, or | ||||||
| 2 | any other substance (other than by airline) that both | ||||||
| 3 | originates and terminates in this State, plus (ii) that | ||||||
| 4 | portion of the person's gross receipts from movements or | ||||||
| 5 | shipments of people, goods, mail, oil, gas, or any other | ||||||
| 6 | substance (other than by airline) that originates in one | ||||||
| 7 | state or jurisdiction and terminates in another state or | ||||||
| 8 | jurisdiction, that is determined by the ratio that the | ||||||
| 9 | miles traveled in this State bears to total miles | ||||||
| 10 | everywhere and (b) the denominator of which shall be all | ||||||
| 11 | revenue derived from the movement or shipment of people, | ||||||
| 12 | goods, mail, oil, gas, or any other substance (other than | ||||||
| 13 | by airline). Where a taxpayer is engaged in the | ||||||
| 14 | transportation of both passengers and freight, the | ||||||
| 15 | fraction above referred to shall first be determined | ||||||
| 16 | separately for passenger miles and freight miles. Then an | ||||||
| 17 | average of the passenger miles fraction and the freight | ||||||
| 18 | miles fraction shall be weighted to reflect the | ||||||
| 19 | taxpayer's: | ||||||
| 20 | (A) relative railway operating income from total | ||||||
| 21 | passenger and total freight service, as reported to | ||||||
| 22 | the Surface Transportation Board, in the case of | ||||||
| 23 | transportation by railroad; and | ||||||
| 24 | (B) relative gross receipts from passenger and | ||||||
| 25 | freight transportation, in case of transportation | ||||||
| 26 | other than by railroad. | ||||||
| |||||||
| |||||||
| 1 | (4) For taxable years ending on or after December 31, | ||||||
| 2 | 2008, business income derived from furnishing airline | ||||||
| 3 | transportation services shall be apportioned to this State | ||||||
| 4 | by multiplying such income by a fraction, the numerator of | ||||||
| 5 | which is the revenue miles of the person in this State, and | ||||||
| 6 | the denominator of which is the revenue miles of the | ||||||
| 7 | person everywhere. For purposes of this paragraph, a | ||||||
| 8 | revenue mile is the transportation of one passenger or one | ||||||
| 9 | net ton of freight the distance of one mile for a | ||||||
| 10 | consideration. If a person is engaged in the | ||||||
| 11 | transportation of both passengers and freight, the | ||||||
| 12 | fraction above referred to shall be determined by means of | ||||||
| 13 | an average of the passenger revenue mile fraction and the | ||||||
| 14 | freight revenue mile fraction, weighted to reflect the | ||||||
| 15 | person's relative gross receipts from passenger and | ||||||
| 16 | freight airline transportation. | ||||||
| 17 | (e) Combined apportionment. Where 2 or more persons are | ||||||
| 18 | engaged in a unitary business as described in subsection | ||||||
| 19 | (a)(27) of Section 1501, a part of which is conducted in this | ||||||
| 20 | State by one or more members of the group, the business income | ||||||
| 21 | attributable to this State by any such member or members shall | ||||||
| 22 | be apportioned by means of the combined apportionment method. | ||||||
| 23 | (f) Alternative allocation. If the allocation and | ||||||
| 24 | apportionment provisions of subsections (a) through (e) and of | ||||||
| 25 | subsection (h) do not, for taxable years ending before | ||||||
| 26 | December 31, 2008, fairly represent the extent of a person's | ||||||
| |||||||
| |||||||
| 1 | business activity in this State, or, for taxable years ending | ||||||
| 2 | on or after December 31, 2008, fairly represent the market for | ||||||
| 3 | the person's goods, services, or other sources of business | ||||||
| 4 | income, the person may petition for, or the Director may, | ||||||
| 5 | without a petition, permit or require, in respect of all or any | ||||||
| 6 | part of the person's business activity, if reasonable: | ||||||
| 7 | (1) Separate accounting; | ||||||
| 8 | (2) The exclusion of any one or more factors; | ||||||
| 9 | (3) The inclusion of one or more additional factors | ||||||
| 10 | which will fairly represent the person's business | ||||||
| 11 | activities or market in this State; or | ||||||
| 12 | (4) The employment of any other method to effectuate | ||||||
| 13 | an equitable allocation and apportionment of the person's | ||||||
| 14 | business income. | ||||||
| 15 | (g) Cross reference. For allocation of business income by | ||||||
| 16 | residents, see Section 301(a). | ||||||
| 17 | (h) For tax years ending on or after December 31, 1998, the | ||||||
| 18 | apportionment factor of persons who apportion their business | ||||||
| 19 | income to this State under subsection (a) shall be equal to: | ||||||
| 20 | (1) for tax years ending on or after December 31, 1998 | ||||||
| 21 | and before December 31, 1999, 16 2/3% of the property | ||||||
| 22 | factor plus 16 2/3% of the payroll factor plus 66 2/3% of | ||||||
| 23 | the sales factor; | ||||||
| 24 | (2) for tax years ending on or after December 31, 1999 | ||||||
| 25 | and before December 31, 2000, 8 1/3% of the property | ||||||
| 26 | factor plus 8 1/3% of the payroll factor plus 83 1/3% of | ||||||
| |||||||
| |||||||
| 1 | the sales factor; | ||||||
| 2 | (3) for tax years ending on or after December 31, | ||||||
| 3 | 2000, the sales factor. | ||||||
| 4 | If, in any tax year ending on or after December 31, 1998 and | ||||||
| 5 | before December 31, 2000, the denominator of the payroll, | ||||||
| 6 | property, or sales factor is zero, the apportionment factor | ||||||
| 7 | computed in paragraph (1) or (2) of this subsection for that | ||||||
| 8 | year shall be divided by an amount equal to 100% minus the | ||||||
| 9 | percentage weight given to each factor whose denominator is | ||||||
| 10 | equal to zero. | ||||||
| 11 | (Source: P.A. 101-31, eff. 6-28-19; 101-585, eff. 8-26-19; | ||||||
| 12 | 102-40, eff. 6-25-21; 102-558, eff. 8-20-21.)
| ||||||
| 13 | ARTICLE 90. | ||||||
| 14 | Section 90-5. The Illinois Income Tax Act is amended by | ||||||
| 15 | changing Sections 218 and 227 as follows:
| ||||||
| 16 | (35 ILCS 5/218) | ||||||
| 17 | Sec. 218. Credit for student-assistance contributions. | ||||||
| 18 | (a) For taxable years ending on or after December 31, 2009 | ||||||
| 19 | and on or before December 31, 2029 2024, each taxpayer who, | ||||||
| 20 | during the taxable year, makes a contribution (i) to a | ||||||
| 21 | specified individual College Savings Pool Account under | ||||||
| 22 | Section 16.5 of the State Treasurer Act or (ii) to the Illinois | ||||||
| 23 | Prepaid Tuition Trust Fund in an amount matching a | ||||||
| |||||||
| |||||||
| 1 | contribution made in the same taxable year by an employee of | ||||||
| 2 | the taxpayer to that Account or Fund is entitled to a credit | ||||||
| 3 | against the tax imposed under subsections (a) and (b) of | ||||||
| 4 | Section 201 in an amount equal to 25% of that matching | ||||||
| 5 | contribution, but not to exceed $500 per contributing employee | ||||||
| 6 | per taxable year. | ||||||
| 7 | (b) For taxable years ending before December 31, 2023, for | ||||||
| 8 | partners, shareholders of Subchapter S corporations, and | ||||||
| 9 | owners of limited liability companies, if the liability | ||||||
| 10 | company is treated as a partnership for purposes of federal | ||||||
| 11 | and State income taxation, there is allowed a credit under | ||||||
| 12 | this Section to be determined in accordance with the | ||||||
| 13 | determination of income and distributive share of income under | ||||||
| 14 | Sections 702 and 704 and Subchapter S of the Internal Revenue | ||||||
| 15 | Code. For taxable years ending on or after December 31, 2023, | ||||||
| 16 | partners and shareholders of subchapter S corporations are | ||||||
| 17 | entitled to a credit under this Section as provided in Section | ||||||
| 18 | 251. | ||||||
| 19 | (c) The credit may not be carried back. If the amount of | ||||||
| 20 | the credit exceeds the tax liability for the year, the excess | ||||||
| 21 | may be carried forward and applied to the tax liability of the | ||||||
| 22 | 5 taxable years following the excess credit year. The tax | ||||||
| 23 | credit shall be applied to the earliest year for which there is | ||||||
| 24 | a tax liability. If there are credits for more than one year | ||||||
| 25 | that are available to offset a liability, the earlier credit | ||||||
| 26 | shall be applied first. | ||||||
| |||||||
| |||||||
| 1 | (d) A taxpayer claiming the credit under this Section must | ||||||
| 2 | maintain and record any information that the Illinois Student | ||||||
| 3 | Assistance Commission, the Office of the State Treasurer, or | ||||||
| 4 | the Department may require regarding the matching contribution | ||||||
| 5 | for which the credit is claimed. | ||||||
| 6 | (Source: P.A. 102-289, eff. 8-6-21; 103-396, eff. 1-1-24.)
| ||||||
| 7 | (35 ILCS 5/227) | ||||||
| 8 | Sec. 227. Adoption credit. | ||||||
| 9 | (a) Beginning with tax years ending on or after December | ||||||
| 10 | 31, 2018 and ending with tax years ending on or before December | ||||||
| 11 | 31, 2029, in the case of an individual taxpayer there shall be | ||||||
| 12 | allowed a credit against the tax imposed by subsections (a) | ||||||
| 13 | and (b) of Section 201 in an amount equal to the amount of the | ||||||
| 14 | federal adoption tax credit received pursuant to Section 23 of | ||||||
| 15 | the Internal Revenue Code with respect to the adoption of a | ||||||
| 16 | qualifying dependent child, subject to the limitations set | ||||||
| 17 | forth in this subsection and subsection (b). The aggregate | ||||||
| 18 | amount of qualified adoption expenses which may be taken into | ||||||
| 19 | account under this Section for all taxable years with respect | ||||||
| 20 | to the adoption of a qualifying dependent child by the | ||||||
| 21 | taxpayer shall not exceed $2,000 ($1,000 in the case of a | ||||||
| 22 | married individual filing a separate return). The credit under | ||||||
| 23 | this Section shall be allowed: (i) in the case of any expense | ||||||
| 24 | paid or incurred before the taxable year in which such | ||||||
| 25 | adoption becomes final, for the taxable year following the | ||||||
| |||||||
| |||||||
| 1 | taxable year during which such expense is paid or incurred, | ||||||
| 2 | and (ii) in the case of an expense paid or incurred during or | ||||||
| 3 | after the taxable year in which such adoption becomes final, | ||||||
| 4 | for the taxable year in which such expense is paid or incurred. | ||||||
| 5 | No credit shall be allowed under this Section for any expense | ||||||
| 6 | to the extent that funds for such expense are received under | ||||||
| 7 | any federal, State, or local program. For purposes of this | ||||||
| 8 | Section, spouses filing a joint return shall be considered one | ||||||
| 9 | taxpayer. | ||||||
| 10 | For a non-resident or part-year resident, the amount of | ||||||
| 11 | the credit under this Section shall be in proportion to the | ||||||
| 12 | amount of income attributable to this State. | ||||||
| 13 | (b) Increased credit amount for resident children. With | ||||||
| 14 | respect to the adoption of an eligible child who is at least | ||||||
| 15 | one year old and resides in Illinois at the time the expenses | ||||||
| 16 | are paid or incurred, subsection (a) shall be applied by | ||||||
| 17 | substituting $5,000 ($2,500 in the case of a married | ||||||
| 18 | individual filing a separate return) for $2,000. | ||||||
| 19 | (c) In no event shall a credit under this Section reduce | ||||||
| 20 | the taxpayer's liability to less than zero. If the amount of | ||||||
| 21 | the credit exceeds the income tax liability for the applicable | ||||||
| 22 | tax year, the excess may be carried forward and applied to the | ||||||
| 23 | tax liability of the 5 taxable years following the excess | ||||||
| 24 | credit year. The credit shall be applied to the earliest year | ||||||
| 25 | for which there is a tax liability. If there are credits from | ||||||
| 26 | more than one year that are available to offset a liability, | ||||||
| |||||||
| |||||||
| 1 | the earlier credit shall be applied first. | ||||||
| 2 | (d) The term "qualified adoption expenses" shall have the | ||||||
| 3 | same meaning as under Section 23(d) of the Internal Revenue | ||||||
| 4 | Code. | ||||||
| 5 | (Source: P.A. 100-587, eff. 6-4-18; 101-81, eff. 7-12-19.)
| ||||||
| 6 | ARTICLE 93. | ||||||
| 7 | Section 93-1. Short title. This Act may be cited as the | ||||||
| 8 | Ground-Based Sparkler Purchaser Excise Tax Act. References in | ||||||
| 9 | this Article to "this Act" mean this Article.
| ||||||
| 10 | Section 93-5. Definitions. As used in this Act: | ||||||
| 11 | "Affirmative act in furtherance of the evasion" means an | ||||||
| 12 | act designed in whole or in part to (i) conceal, misrepresent, | ||||||
| 13 | falsify, or manipulate any material fact or (ii) tamper with | ||||||
| 14 | or destroy documents or materials related to a person's tax | ||||||
| 15 | liability under this Act. | ||||||
| 16 | "Automated sales suppression device" or "zapper" means a | ||||||
| 17 | software program that falsifies the electronic records of an | ||||||
| 18 | electronic cash register or other point-of-sale system, | ||||||
| 19 | including, but not limited to, transaction data and | ||||||
| 20 | transaction reports. "Automated sales suppression device" or | ||||||
| 21 | "zapper" includes the software program, any device that | ||||||
| 22 | carries the software program, or an Internet link to the | ||||||
| 23 | software program. | ||||||
| |||||||
| |||||||
| 1 | "Consumer distributor" means any person who distributes, | ||||||
| 2 | offers for sale, sells, or exchanges for consideration | ||||||
| 3 | consumer fireworks in this State to another distributor or | ||||||
| 4 | directly to any retailer or person for resale. | ||||||
| 5 | "Consumer retailer" means any person who offers for sale, | ||||||
| 6 | sells, or exchanges for consideration consumer fireworks in | ||||||
| 7 | this State directly to any person with a consumer display | ||||||
| 8 | permit. | ||||||
| 9 | "Department" means the Department of Revenue. | ||||||
| 10 | "Director" means the Director of Revenue. | ||||||
| 11 | "Electronic cash register" means a device that keeps a | ||||||
| 12 | register or supporting documents through the use of an | ||||||
| 13 | electronic device or computer system designed to record | ||||||
| 14 | transaction data for the purpose of computing, compiling, or | ||||||
| 15 | processing retail sales transaction data in any manner. | ||||||
| 16 | "Ground-based sparkler retailer" means any person that | ||||||
| 17 | transfers the ownership of or title to ground-based sparklers | ||||||
| 18 | to a purchaser, for the purpose of use, and not for the purpose | ||||||
| 19 | of resale, for a valuable consideration. | ||||||
| 20 | "Ground-based sparkler" means any ground-based sparkler | ||||||
| 21 | that (i) is nonexplosive and nonaerial, (ii) may produce a | ||||||
| 22 | crackling or whistling effect, and (iii) contains 75 grams or | ||||||
| 23 | less of pyrotechnic composition per tube or a total of 500 | ||||||
| 24 | grams or less for multiple tubes, such as cones, including | ||||||
| 25 | showers of sparks, fountains, repeaters, and cakes. | ||||||
| 26 | "Person" means a natural individual, firm, partnership, | ||||||
| |||||||
| |||||||
| 1 | association, joint stock company, joint adventure, public or | ||||||
| 2 | private corporation, limited liability company, or a receiver, | ||||||
| 3 | executor, trustee, guardian, or other representative appointed | ||||||
| 4 | by order of any court. | ||||||
| 5 | "Phantom-ware" means a hidden programming option embedded | ||||||
| 6 | in the operating system of an electronic cash register or | ||||||
| 7 | hardwired into an electronic cash register that can be used to | ||||||
| 8 | create a second set of records or that can eliminate or | ||||||
| 9 | manipulate transaction records in an electronic cash register. | ||||||
| 10 | "Purchase price" means the consideration paid for a | ||||||
| 11 | purchase of ground-based sparklers, valued in money, whether | ||||||
| 12 | received in money or otherwise, including cash, gift cards, | ||||||
| 13 | credits, and property and shall be determined without any | ||||||
| 14 | deduction on account of the cost of materials used, labor or | ||||||
| 15 | service costs, or any other expense whatsoever. "Purchase | ||||||
| 16 | price" does not include consideration paid for: | ||||||
| 17 | (1) any charge for a payment that is not honored by a | ||||||
| 18 | financial institution; | ||||||
| 19 | (2) any finance or credit charge, penalty or charge | ||||||
| 20 | for delayed payment, or discount for prompt payment; and | ||||||
| 21 | (3) any amounts added to a purchaser's bill because of | ||||||
| 22 | charges made under the tax imposed by this Act, the | ||||||
| 23 | Retailers' Occupation Tax Act, the Use Tax Act, the | ||||||
| 24 | Service Occupation Tax Act, the Service Use Tax Act, or | ||||||
| 25 | any locally imposed occupation or use tax. | ||||||
| 26 | "Purchaser" means a person who, through a sale at retail, | ||||||
| |||||||
| |||||||
| 1 | acquires ground-based sparklers for a valuable consideration. | ||||||
| 2 | "Taxpayer" means a ground-based sparkler retailer who is | ||||||
| 3 | required to collect the tax imposed under this Act. | ||||||
| 4 | "Transaction data" includes: items purchased by a | ||||||
| 5 | purchaser; the price of each item; a taxability determination | ||||||
| 6 | for each item; a segregated tax amount for each taxed item; the | ||||||
| 7 | amount of cash or credit tendered; the net amount returned to | ||||||
| 8 | the customer in change; the date and time of the purchase; the | ||||||
| 9 | name, address, and identification number of the vendor; and | ||||||
| 10 | the receipt or invoice number of the transaction. | ||||||
| 11 | "Transaction report" means a report that documents, | ||||||
| 12 | without limitation, the sales, taxes, or fees collected, media | ||||||
| 13 | totals, and discount voids at an electronic cash register and | ||||||
| 14 | that is printed on a cash register tape at the end of a day or | ||||||
| 15 | shift, or a report that documents every action at an | ||||||
| 16 | electronic cash register and is stored electronically.
| ||||||
| 17 | Section 93-10. Tax imposed. | ||||||
| 18 | (a) Beginning January 1, 2025, a tax is imposed upon | ||||||
| 19 | purchasers for the privilege of using ground-based sparklers | ||||||
| 20 | and not for the purpose of resale at the rate of 3% of the | ||||||
| 21 | purchase price of ground-based sparklers. | ||||||
| 22 | (b) The tax imposed under this Act shall be in addition to | ||||||
| 23 | all other occupation, privilege, or excise taxes imposed by | ||||||
| 24 | the State or by any municipal corporation or political | ||||||
| 25 | subdivision thereof. | ||||||
| |||||||
| |||||||
| 1 | (c) The tax imposed under this Act shall not be imposed on | ||||||
| 2 | any purchase by a purchaser if the ground-based sparkler | ||||||
| 3 | retailer is prohibited by federal or State Constitution, | ||||||
| 4 | treaty, convention, statute, or court decision from collecting | ||||||
| 5 | the tax from the purchaser.
| ||||||
| 6 | Section 93-15. Bundling of taxable and nontaxable items; | ||||||
| 7 | prohibition; taxation. A ground-based sparkler retailer is | ||||||
| 8 | prohibited from selling ground-based sparkler products in | ||||||
| 9 | combination or bundled with any other items not subject to tax | ||||||
| 10 | under this Act for one price, and each ground-based sparkler | ||||||
| 11 | must be separately identified by quantity and price on the | ||||||
| 12 | receipt. | ||||||
| 13 | If a ground-based sparkler retailer sells ground-based | ||||||
| 14 | sparkler products in combination or bundled with items that | ||||||
| 15 | are not subject to tax under this Act for one price in | ||||||
| 16 | violation of the prohibition on this activity, then the tax | ||||||
| 17 | under this Act is imposed on the purchase price of the entire | ||||||
| 18 | bundled product.
| ||||||
| 19 | Section 93-20. Collection of tax. | ||||||
| 20 | (a) The tax imposed by this Act shall be collected from the | ||||||
| 21 | purchaser by the ground-based sparkler retailer at the rate | ||||||
| 22 | stated in Section 93-10 with respect to ground-based sparklers | ||||||
| 23 | sold by the ground-based sparkler retailer to the purchaser | ||||||
| 24 | and shall be remitted to the Department as provided in Section | ||||||
| |||||||
| |||||||
| 1 | 93-35. Ground-based sparkler retailers shall collect the tax | ||||||
| 2 | from purchasers by adding the tax to the amount of the purchase | ||||||
| 3 | price received from the purchaser for selling ground-based | ||||||
| 4 | sparklers to the purchaser. The tax imposed by this Act shall, | ||||||
| 5 | when collected, be stated as a distinct item separate and | ||||||
| 6 | apart from the purchase price of the ground-based sparklers. | ||||||
| 7 | (b) If a ground-based sparkler retailer collects the | ||||||
| 8 | ground-based sparkler purchaser excise tax measured by a | ||||||
| 9 | purchase price that is not subject to the ground-based | ||||||
| 10 | sparkler purchaser excise tax, or if a ground-based sparkler | ||||||
| 11 | retailer, in collecting the ground-based sparkler purchaser | ||||||
| 12 | excise tax measured by a purchase price that is subject to tax | ||||||
| 13 | under this Act, collects more from the purchaser than the | ||||||
| 14 | required amount of the ground-based sparkler purchaser excise | ||||||
| 15 | tax on the transaction, the purchaser shall have a legal right | ||||||
| 16 | to claim a refund of that amount from the ground-based | ||||||
| 17 | sparkler retailer. If, however, that amount is not refunded to | ||||||
| 18 | the purchaser for any reason, the ground-based sparkler | ||||||
| 19 | retailer is liable to pay that amount to the Department. | ||||||
| 20 | (c) Any person purchasing ground-based sparklers subject | ||||||
| 21 | to tax under this Act as to which there has been no charge made | ||||||
| 22 | to them of the tax imposed by Section 93-10 shall make payment | ||||||
| 23 | of the tax imposed by Section 93-10 in the form and manner | ||||||
| 24 | provided by the Department not later than the 20th day of the | ||||||
| 25 | month following the month of purchase of the ground-based | ||||||
| 26 | sparklers.
| ||||||
| |||||||
| |||||||
| 1 | Section 93-25. Registration of ground-based sparkler | ||||||
| 2 | retailers. Every ground-based sparkler retailer required to | ||||||
| 3 | collect the tax under this Act shall apply to the Department | ||||||
| 4 | for a certificate of registration under this Act. All | ||||||
| 5 | applications for registration under this Act shall be made by | ||||||
| 6 | electronic means in the form and manner required by the | ||||||
| 7 | Department. For that purpose, the provisions of Section 2a of | ||||||
| 8 | the Retailers' Occupation Tax Act are incorporated into this | ||||||
| 9 | Act to the extent not inconsistent with this Act. In addition, | ||||||
| 10 | no certificate of registration shall be issued under this Act | ||||||
| 11 | unless the applicant is licensed under the Retailers' | ||||||
| 12 | Occupation Tax Act.
| ||||||
| 13 | Section 93-30. Tax collected as debt owed to State. Any | ||||||
| 14 | ground-based sparkler retailer required to collect the tax | ||||||
| 15 | imposed by this Act shall be liable to the Department for the | ||||||
| 16 | tax, whether the tax has been collected by the ground-based | ||||||
| 17 | sparkler retailer, and any such tax shall constitute a debt | ||||||
| 18 | owed by the ground-based sparkler retailer to the State. To | ||||||
| 19 | the extent that a ground-based sparkler retailer is required | ||||||
| 20 | to collect the tax imposed by this Act has actually collected | ||||||
| 21 | that tax, the tax is held in trust for the benefit of the | ||||||
| 22 | Department.
| ||||||
| 23 | Section 93-35. Return and payment of tax by ground-based | ||||||
| |||||||
| |||||||
| 1 | sparkler retailer. Each ground-based sparkler retailer that is | ||||||
| 2 | required or authorized to collect the tax imposed by this Act | ||||||
| 3 | shall make a return to the Department, by electronic means, on | ||||||
| 4 | or before the 20th day of each month for the preceding calendar | ||||||
| 5 | month stating: | ||||||
| 6 | (1) the ground-based sparkler retailer's name; | ||||||
| 7 | (2) the address of the ground-based sparkler | ||||||
| 8 | retailer's principal place of business and the address of | ||||||
| 9 | the principal place of business, if that is a different | ||||||
| 10 | address, from which the ground-based sparkler retailer is | ||||||
| 11 | engaged in the business of selling ground-based sparklers | ||||||
| 12 | subject to tax under this Act; | ||||||
| 13 | (3) the total purchase price received by the | ||||||
| 14 | ground-based sparkler retailer for ground-based sparklers | ||||||
| 15 | subject to tax under this Act; | ||||||
| 16 | (4) the amount of tax due at each rate; | ||||||
| 17 | (5) the signature of the ground-based sparkler | ||||||
| 18 | retailer; and | ||||||
| 19 | (6) any other information as the Department may | ||||||
| 20 | reasonably require. | ||||||
| 21 | All returns required to be filed and payments required to | ||||||
| 22 | be made under this Act shall be by electronic means. | ||||||
| 23 | Ground-based sparkler retailers who demonstrate hardship in | ||||||
| 24 | paying electronically may petition the Department to waive the | ||||||
| 25 | electronic payment requirement. | ||||||
| 26 | Any amount that is required to be shown or reported on any | ||||||
| |||||||
| |||||||
| 1 | return or other document under this Act shall, if the amount is | ||||||
| 2 | not a whole-dollar amount, be increased to the nearest | ||||||
| 3 | whole-dollar amount if the fractional part of a dollar is | ||||||
| 4 | $0.50 or more and decreased to the nearest whole-dollar amount | ||||||
| 5 | if the fractional part of a dollar is less than $0.50. If a | ||||||
| 6 | total amount of less than $1 is payable, refundable, or | ||||||
| 7 | creditable, the amount shall be disregarded if it is less than | ||||||
| 8 | $0.50 and shall be increased to $1 if it is $0.50 or more. | ||||||
| 9 | The ground-based sparkler retailer making the return under | ||||||
| 10 | this Section shall also pay to the Department the amount of tax | ||||||
| 11 | imposed by this Act, less a discount of 1.75% not to exceed | ||||||
| 12 | $1,000 per return period, which is allowed to reimburse the | ||||||
| 13 | ground-based sparkler retailer for the expenses incurred in | ||||||
| 14 | keeping records, collecting tax, preparing and filing returns, | ||||||
| 15 | remitting the tax, and supplying data to the Department upon | ||||||
| 16 | request. No discount may be claimed by a ground-based sparkler | ||||||
| 17 | retailer on returns not timely filed and for taxes not timely | ||||||
| 18 | remitted. No discount may be claimed by a taxpayer for any | ||||||
| 19 | return that is not filed electronically. No discount may be | ||||||
| 20 | claimed by a taxpayer for any payment that is not made | ||||||
| 21 | electronically, unless a waiver has been granted under this | ||||||
| 22 | Section. | ||||||
| 23 | Notwithstanding any other provision of this Act concerning | ||||||
| 24 | the time within which a ground-based sparkler retailer may | ||||||
| 25 | file a return, any such ground-based sparkler retailer who | ||||||
| 26 | ceases to engage in the kind of business that makes the person | ||||||
| |||||||
| |||||||
| 1 | responsible for filing returns under this Act shall file a | ||||||
| 2 | final return under this Act with the Department within one | ||||||
| 3 | month after discontinuing the business. | ||||||
| 4 | If any payment provided for in this Section exceeds the | ||||||
| 5 | taxpayer's liabilities under this Act, as shown on an original | ||||||
| 6 | monthly return, the Department shall, if requested by the | ||||||
| 7 | taxpayer, issue to the taxpayer a credit memorandum no later | ||||||
| 8 | than 30 days after the date of payment. The credit evidenced by | ||||||
| 9 | the credit memorandum may be assigned by the taxpayer to a | ||||||
| 10 | similar taxpayer under this Act, in accordance with reasonable | ||||||
| 11 | rules adopted by the Department. If no such request is made, | ||||||
| 12 | the taxpayer may credit the excess payment against tax | ||||||
| 13 | liability subsequently to be remitted to the Department under | ||||||
| 14 | this Act, in accordance with reasonable rules adopted by the | ||||||
| 15 | Department. If the Department subsequently determines that all | ||||||
| 16 | or any part of the credit taken was not actually due to the | ||||||
| 17 | taxpayer, the taxpayer's discount shall be reduced, if | ||||||
| 18 | necessary, to reflect the difference between the credit taken | ||||||
| 19 | and that actually due, and that taxpayer shall be liable for | ||||||
| 20 | penalties and interest on the difference. If a ground-based | ||||||
| 21 | sparkler retailer fails to sign a return within 30 days after | ||||||
| 22 | the proper notice and demand for signature by the Department | ||||||
| 23 | is received by the ground-based sparkler retailer, the return | ||||||
| 24 | shall be considered valid and any amount shown to be due on the | ||||||
| 25 | return shall be deemed assessed.
| ||||||
| |||||||
| |||||||
| 1 | Section 93-40. Deposit of proceeds. From the revenue | ||||||
| 2 | collected under Section 93-10, the Department shall pay 25% | ||||||
| 3 | into the Firemen's Annuity and Benefit Fund, 25% into the | ||||||
| 4 | Firefighters' Pension Investment Fund, and 50% into the | ||||||
| 5 | General Revenue Fund.
| ||||||
| 6 | Section 93-45. Record keeping; books and records. | ||||||
| 7 | (a) Every ground-based sparkler retailer, whether the | ||||||
| 8 | ground-based sparkler retailer has obtained a certificate of | ||||||
| 9 | registration under Section 93-25, shall keep complete and | ||||||
| 10 | accurate records of ground-based sparklers held, purchased, | ||||||
| 11 | sold, or otherwise disposed of, and shall preserve and keep | ||||||
| 12 | all invoices, bills of lading, sales records, and copies of | ||||||
| 13 | bills of sale, returns, and other pertinent papers and | ||||||
| 14 | documents relating to the purchase, sale, or disposition of | ||||||
| 15 | ground-based sparklers. Such records need not be maintained on | ||||||
| 16 | the licensed premises but must be maintained in the State. | ||||||
| 17 | However, all original invoices or copies thereof covering | ||||||
| 18 | purchases of ground-based sparklers must be retained on the | ||||||
| 19 | licensed premises for a period of 90 days after such purchase, | ||||||
| 20 | unless the Department has granted a waiver in response to a | ||||||
| 21 | written request in cases where records are kept at a central | ||||||
| 22 | business location within the State. The Department shall adopt | ||||||
| 23 | rules regarding the eligibility for a waiver, revocation of a | ||||||
| 24 | waiver, and requirements and standards for maintenance and | ||||||
| 25 | accessibility of records located at a central location under a | ||||||
| |||||||
| |||||||
| 1 | waiver provided under this Section. | ||||||
| 2 | (b) Books, records, papers, and documents that are | ||||||
| 3 | required by this Act to be kept shall, at all times during the | ||||||
| 4 | usual business hours of the day, be subject to inspection by | ||||||
| 5 | the Department or its duly authorized agents and employees. | ||||||
| 6 | The books, records, papers, and documents for any period with | ||||||
| 7 | respect to which the Department is authorized to issue a | ||||||
| 8 | notice of tax liability shall be preserved until the | ||||||
| 9 | expiration of that period.
| ||||||
| 10 | Section 93-50. Violations and penalties. | ||||||
| 11 | (a) If the amount due is under $300, any ground-based | ||||||
| 12 | sparkler retailer who fails to file a return, willfully fails | ||||||
| 13 | or refuses to make any payment to the Department of the tax | ||||||
| 14 | imposed by this Act, or files a fraudulent return, or any | ||||||
| 15 | officer or agent of a corporation engaged in the business of | ||||||
| 16 | selling ground-based sparklers to purchasers located in this | ||||||
| 17 | State who signs a fraudulent return filed on behalf of the | ||||||
| 18 | corporation, or any accountant or other agent who knowingly | ||||||
| 19 | enters false information on the return of any taxpayer under | ||||||
| 20 | this Act is guilty of a Class 4 felony. | ||||||
| 21 | (b) If the amount due is $300 or more, any ground-based | ||||||
| 22 | sparkler retailer who files, or causes to be filed, a | ||||||
| 23 | fraudulent return, or any officer or agent of a corporation | ||||||
| 24 | engaged in the business of selling ground-based sparklers to | ||||||
| 25 | purchasers located in this State who files or causes to be | ||||||
| |||||||
| |||||||
| 1 | filed or signs or causes to be signed a fraudulent return filed | ||||||
| 2 | on behalf of the corporation, or any accountant or other agent | ||||||
| 3 | who knowingly enters false information on the return of any | ||||||
| 4 | taxpayer under this Act is guilty of a Class 3 felony. | ||||||
| 5 | (c) Any person who violates any provision of Section | ||||||
| 6 | 93-30, fails to keep books and records as required under this | ||||||
| 7 | Act, or willfully violates a rule of the Department for the | ||||||
| 8 | administration and enforcement of this Act is guilty of a | ||||||
| 9 | Class 4 felony. A person commits a separate offense on each day | ||||||
| 10 | that the person engages in business in violation of Section | ||||||
| 11 | 93-30 or a rule of the Department for the administration and | ||||||
| 12 | enforcement of this Act. If a person fails to produce the books | ||||||
| 13 | and records for inspection by the Department upon request, a | ||||||
| 14 | prima facie presumption shall arise that the person has failed | ||||||
| 15 | to keep books and records as required under this Act. A person | ||||||
| 16 | who is unable to rebut this presumption is in violation of this | ||||||
| 17 | Act and is subject to the penalties provided in this Section. | ||||||
| 18 | (d) Any person who willfully violates a rule of the | ||||||
| 19 | Department for the administration and enforcement of this | ||||||
| 20 | Article, is guilty of a business offense and may be fined up to | ||||||
| 21 | $5,000. | ||||||
| 22 | (e) Any taxpayer or agent of a taxpayer who with the intent | ||||||
| 23 | to defraud purports to make a payment due to the Department by | ||||||
| 24 | issuing or delivering a check or other order upon a real or | ||||||
| 25 | fictitious depository for the payment of money, knowing that | ||||||
| 26 | it will not be paid by the depository, is guilty of a deceptive | ||||||
| |||||||
| |||||||
| 1 | practice in violation of Section 17-1 of the Criminal Code of | ||||||
| 2 | 2012. | ||||||
| 3 | (f) Any person who fails to keep books and records or fails | ||||||
| 4 | to produce books and records for inspection, as required by | ||||||
| 5 | Section 93-45, is liable to pay to the Department, for deposit | ||||||
| 6 | in the Tax Compliance and Administration Fund, a penalty of | ||||||
| 7 | $1,000 for the first failure to keep books and records or | ||||||
| 8 | failure to produce books and records for inspection, as | ||||||
| 9 | required by Section 93-45, and $3,000 for each subsequent | ||||||
| 10 | failure to keep books and records or failure to produce books | ||||||
| 11 | and records for inspection, as required by Section 93-45. | ||||||
| 12 | (g) Any person who knowingly acts as a ground-based | ||||||
| 13 | sparkler retailer in this State without first having obtained | ||||||
| 14 | a certificate of registration to do so in compliance with | ||||||
| 15 | Section 93-30 shall be guilty of a Class 4 felony. | ||||||
| 16 | (h) A person commits the offense of tax evasion under this | ||||||
| 17 | Act when a person knowingly attempts in any manner to evade or | ||||||
| 18 | defeat the tax imposed on the person or on any other person, or | ||||||
| 19 | the payment thereof, and a person commits an affirmative act | ||||||
| 20 | in furtherance of the evasion. | ||||||
| 21 | Two or more acts of sales tax evasion may be charged as a | ||||||
| 22 | single count in any indictment, information, or complaint and | ||||||
| 23 | the amount of tax deficiency may be aggregated for purposes of | ||||||
| 24 | determining the amount of tax that is attempted to be or is | ||||||
| 25 | evaded and the period between the first and last acts may be | ||||||
| 26 | alleged as the date of the offense. | ||||||
| |||||||
| |||||||
| 1 | (1) If the amount of tax, the assessment or payment of | ||||||
| 2 | which is attempted to be or is evaded is less than $500, a | ||||||
| 3 | person is guilty of a Class 4 felony. | ||||||
| 4 | (2) If the amount of tax, the assessment or payment of | ||||||
| 5 | which is attempted to be or is evaded is $500 or more but | ||||||
| 6 | less than $10,000, a person is guilty of a Class 3 felony. | ||||||
| 7 | (3) If the amount of tax, the assessment or payment of | ||||||
| 8 | which is attempted to be or is evaded is $10,000 or more | ||||||
| 9 | but less than $100,000, a person is guilty of a Class 2 | ||||||
| 10 | felony. | ||||||
| 11 | (4) If the amount of tax, the assessment or payment of | ||||||
| 12 | which is attempted to be or is evaded is $100,000 or more, | ||||||
| 13 | a person is guilty of a Class 1 felony. | ||||||
| 14 | Any person who knowingly sells, purchases, installs, | ||||||
| 15 | transfers, possesses, uses, or accesses any automated sales | ||||||
| 16 | suppression device, zapper, or phantom-ware in this State is | ||||||
| 17 | guilty of a Class 3 felony. | ||||||
| 18 | A prosecution for any act in violation of this Section may | ||||||
| 19 | be commenced at any time within 5 years of the commission of | ||||||
| 20 | that act. | ||||||
| 21 | (i) The Department may adopt rules to administer the | ||||||
| 22 | penalties under this Section. | ||||||
| 23 | (j) Any person whose principal place of business is in | ||||||
| 24 | this State and who is charged with a violation under this | ||||||
| 25 | Section shall be tried in the county where the person's | ||||||
| 26 | principal place of business is located unless the person | ||||||
| |||||||
| |||||||
| 1 | asserts a right to be tried in another venue. | ||||||
| 2 | (k) Except as otherwise provided in subsection (h), a | ||||||
| 3 | prosecution for a violation described in this Section may be | ||||||
| 4 | commenced within 3 years after the commission of the act | ||||||
| 5 | constituting the violation.
| ||||||
| 6 | Section 93-55. Department administration and enforcement. | ||||||
| 7 | The Department shall have full power to administer and enforce | ||||||
| 8 | this Act, to collect all taxes and penalties due hereunder, to | ||||||
| 9 | dispose of taxes and penalties so collected in the manner | ||||||
| 10 | hereinafter provided, and to determine all rights to credit | ||||||
| 11 | memoranda, arising on account of the erroneous payment of tax | ||||||
| 12 | or penalty hereunder. | ||||||
| 13 | In the administration of, and compliance with, this Act, | ||||||
| 14 | the Department and persons who are subject to this Act shall | ||||||
| 15 | have the same rights, remedies, privileges, immunities, | ||||||
| 16 | powers, and duties, and be subject to the same conditions, | ||||||
| 17 | restrictions, limitations, penalties, and definitions of | ||||||
| 18 | terms, and employ the same modes of procedure, as are | ||||||
| 19 | prescribed in Sections 2, 3-55, 3a, 4, 5, 7, 10a, 11, 12a, 12b, | ||||||
| 20 | 14, 15, 19, 20, 21, and 22 of the Use Tax Act and Sections 1, | ||||||
| 21 | 2-12, 2b, 4 (except that the time limitation provisions shall | ||||||
| 22 | run from the date when the tax is due rather than from the date | ||||||
| 23 | when gross receipts are received), 5 (except that the time | ||||||
| 24 | limitation provisions on the issuance of notices of tax | ||||||
| 25 | liability shall run from the date when the tax is due rather | ||||||
| |||||||
| |||||||
| 1 | than from the date when gross receipts are received and except | ||||||
| 2 | that in the case of a failure to file a return required by this | ||||||
| 3 | Act, no notice of tax liability shall be issued on and after | ||||||
| 4 | each July 1 and January 1 covering tax due with that return | ||||||
| 5 | during any month or period more than 6 years before that July 1 | ||||||
| 6 | or January 1, respectively), 5a, 5b, 5c, 5d, 5e, 5f, 5g, 5i, | ||||||
| 7 | 5j, 6d, 7, 8, 9, 10, 11, and 12 of the Retailers' Occupation | ||||||
| 8 | Tax Act and all of the provisions of the Uniform Penalty and | ||||||
| 9 | Interest Act, which are not inconsistent with this Act, as | ||||||
| 10 | fully as if those provisions were set forth herein. References | ||||||
| 11 | in the incorporated Sections of the Retailers' Occupation Tax | ||||||
| 12 | Act and the Use Tax Act to retailers, to sellers, or to persons | ||||||
| 13 | engaged in the business of selling tangible personal property | ||||||
| 14 | mean ground-based sparkler retailers when used in this Act. | ||||||
| 15 | References in the incorporated Sections to sales of tangible | ||||||
| 16 | personal property mean sales of ground-based sparklers subject | ||||||
| 17 | to tax under this Act when used in this Act.
| ||||||
| 18 | Section 93-60. Arrest; search and seizure without warrant. | ||||||
| 19 | Any duly authorized employee of the Department (i) may arrest, | ||||||
| 20 | without warrant, any person committing in their presence a | ||||||
| 21 | violation of any of the provisions of this Act, (ii) may, | ||||||
| 22 | without a search warrant, inspect all ground-based sparklers | ||||||
| 23 | located in any place of the business, and (iii) may seize any | ||||||
| 24 | ground-based sparklers in the possession of the ground-based | ||||||
| 25 | sparkler retailer in violation of this Act. The ground-based | ||||||
| |||||||
| |||||||
| 1 | sparklers so seized are subject to confiscation and forfeiture | ||||||
| 2 | as provided in Sections 93-65 and 93-70.
| ||||||
| 3 | Section 93-65. Seizure and forfeiture. After seizing any | ||||||
| 4 | ground-based sparklers as provided in Section 93-60, the | ||||||
| 5 | Department must hold a hearing and determine whether (i) the | ||||||
| 6 | ground-based sparkler retailer was properly registered to sell | ||||||
| 7 | the ground-based sparklers, (ii) the ground-based sparkler | ||||||
| 8 | retailer possessed the ground-based sparklers in violation of | ||||||
| 9 | this Act, or (iii) the ground-based sparkler retailer | ||||||
| 10 | possessed the ground-based sparklers in violation of any | ||||||
| 11 | reasonable rule adopted by the Department for the enforcement | ||||||
| 12 | of this Act at the time of its seizure by the Department. The | ||||||
| 13 | Department shall give not less than 20 days' notice of the time | ||||||
| 14 | and place of the hearing to the owner of the ground-based | ||||||
| 15 | sparklers, if the owner is known, and also to the person in | ||||||
| 16 | whose possession the ground-based sparklers were found, if | ||||||
| 17 | that person is known and if the person in possession is not the | ||||||
| 18 | owner of the ground-based sparklers. If neither the owner nor | ||||||
| 19 | the person in possession of the ground-based sparklers is | ||||||
| 20 | known, the Department must cause publication of the time and | ||||||
| 21 | place of the hearing to be made at least once in each week for | ||||||
| 22 | 3 weeks successively in a newspaper of general circulation in | ||||||
| 23 | the county where the hearing is to be held. | ||||||
| 24 | If, as the result of the hearing, the Department makes any | ||||||
| 25 | of the findings listed in (i) through (iii) above, the | ||||||
| |||||||
| |||||||
| 1 | Department must enter an order declaring the ground-based | ||||||
| 2 | sparklers confiscated and forfeited to the State, to be held | ||||||
| 3 | by the Department for disposal by it as provided in Section | ||||||
| 4 | 93-70. The Department must give notice of the order to the | ||||||
| 5 | owner of the ground-based sparklers, if the owner is known, | ||||||
| 6 | and also to the person in whose possession the ground-based | ||||||
| 7 | sparklers were found, if that person is known and if the person | ||||||
| 8 | in possession is not the owner of the ground-based sparklers. | ||||||
| 9 | If neither the owner nor the person in possession of the | ||||||
| 10 | ground-based sparklers is known, the Department must cause | ||||||
| 11 | publication of the order to be made at least once in each week | ||||||
| 12 | for 3 weeks successively in a newspaper of general circulation | ||||||
| 13 | in the county where the hearing was held.
| ||||||
| 14 | Section 93-70. Search warrant; issuance and return; | ||||||
| 15 | process; confiscation of ground-based sparklers; forfeitures. | ||||||
| 16 | (a) If a peace officer of this State or any duly authorized | ||||||
| 17 | officer or employee of the Department has reason to believe | ||||||
| 18 | that any violation of this Act or a rule of the Department for | ||||||
| 19 | the administration and enforcement of this Act has occurred | ||||||
| 20 | and that the person violating this Act or rule has in that | ||||||
| 21 | person's possession any ground-based sparklers in violation of | ||||||
| 22 | this Act or a rule of the Department for the administration and | ||||||
| 23 | enforcement of this Act, that peace officer or officer or | ||||||
| 24 | employee of the Department may file or cause to be filed a | ||||||
| 25 | complaint in writing, verified by affidavit, with any court | ||||||
| |||||||
| |||||||
| 1 | within whose jurisdiction the premises to be searched are | ||||||
| 2 | situated, stating the facts upon which the belief is founded, | ||||||
| 3 | the premises to be searched, and the property to be seized, and | ||||||
| 4 | procure a search warrant and execute that warrant. Upon the | ||||||
| 5 | execution of the search warrant, the peace officer, or officer | ||||||
| 6 | or employee of the Department, executing the search warrant | ||||||
| 7 | shall make due return of the warrant to the court issuing the | ||||||
| 8 | warrant, together with an inventory of the property taken | ||||||
| 9 | under the warrant. The court must then issue process against | ||||||
| 10 | the owner of the property if the owner is known; otherwise, | ||||||
| 11 | process must be issued against the person in whose possession | ||||||
| 12 | the property is found, if that person is known. In case of | ||||||
| 13 | inability to serve process upon the owner or the person in | ||||||
| 14 | possession of the property at the time of its seizure, notice | ||||||
| 15 | of the proceedings before the court must be given in the same | ||||||
| 16 | manner as required by the law governing cases of attachment. | ||||||
| 17 | Upon the return of the process duly served or upon the posting | ||||||
| 18 | or publishing of notice made, as appropriate, the court or | ||||||
| 19 | jury, if a jury is demanded, shall proceed to determine | ||||||
| 20 | whether the property so seized was held or possessed in | ||||||
| 21 | violation of this Act or a rule of the Department for the | ||||||
| 22 | administration and enforcement of this Act. If a violation is | ||||||
| 23 | found, judgment shall be entered confiscating the property and | ||||||
| 24 | forfeiting it to the State and ordering its delivery to the | ||||||
| 25 | Department. In addition, the court may tax and assess the | ||||||
| 26 | costs of the proceedings. | ||||||
| |||||||
| |||||||
| 1 | (b) If any ground-based sparklers have been declared | ||||||
| 2 | forfeited to the State by the Department and all proceedings | ||||||
| 3 | for the judicial review of the Department's decision have | ||||||
| 4 | terminated, the Department shall, to the extent that its | ||||||
| 5 | decision is sustained on review, destroy such ground-based | ||||||
| 6 | sparklers.
| ||||||
| 7 | Section 93-75. Rulemaking. The Department may adopt rules | ||||||
| 8 | in accordance with the Illinois Administrative Procedure Act | ||||||
| 9 | and prescribe forms relating to the administration and | ||||||
| 10 | enforcement of this Act as it deems appropriate.
| ||||||
| 11 | Section 93-900. The Fireworks Regulation Act of Illinois | ||||||
| 12 | is amended by changing Sections 2, 3.5, and 24 and by adding | ||||||
| 13 | Section 3.6 as follows:
| ||||||
| 14 | (425 ILCS 30/2) (from Ch. 127 1/2, par. 102) | ||||||
| 15 | Sec. 2. The following words and phrases, when used in this | ||||||
| 16 | Act, shall for the purpose of this Act have the following | ||||||
| 17 | definition and meaning: | ||||||
| 18 | (a) The term "fireworks" shall mean and include any | ||||||
| 19 | explosive composition or any substance or combination of | ||||||
| 20 | substances, or article prepared for the purpose of producing a | ||||||
| 21 | visible or audible effect of a temporary exhibitional nature | ||||||
| 22 | by explosion, combustion, deflagration, or detonation, and | ||||||
| 23 | shall include blank cartridges, toy cannons in which | ||||||
| |||||||
| |||||||
| 1 | explosives are used, the type of balloons which require fire | ||||||
| 2 | underneath to propel the same, firecrackers, torpedoes, sky | ||||||
| 3 | rockets, Roman candles, bombs or other fireworks of like | ||||||
| 4 | construction, and any fireworks containing any explosive | ||||||
| 5 | compound; or any tablets or other device containing any | ||||||
| 6 | explosive substance, or containing combustible substances | ||||||
| 7 | producing visual effects. The term "fireworks" shall not | ||||||
| 8 | include snake or glow worm pellets; smoke devices; sparklers; | ||||||
| 9 | ground-based sparklers that (i) are nonexplosive and | ||||||
| 10 | nonaerial, (ii) may produce a crackling or whistling effect, | ||||||
| 11 | and (iii) contain 75 grams or less of pyrotechnic composition | ||||||
| 12 | per tube or a total of 500 grams or less for multiple tubes, | ||||||
| 13 | such as cones, including showers of sparks, fountains, | ||||||
| 14 | repeaters, and cakes; trick noisemakers known as "party | ||||||
| 15 | poppers", "booby traps", "snappers", "trick matches", | ||||||
| 16 | "cigarette loads", and "auto burglar alarms"; toy pistols, toy | ||||||
| 17 | canes, toy guns, or other devices in which paper or plastic | ||||||
| 18 | caps containing twenty-five hundredths grains or less of | ||||||
| 19 | explosive compound are used, provided they are so constructed | ||||||
| 20 | that the hand cannot come in contact with the cap when in place | ||||||
| 21 | for the explosion; and toy pistol paper or plastic caps which | ||||||
| 22 | contain less than twenty-five hundredths grains of explosive | ||||||
| 23 | mixture; the sale and use of which shall be permitted at all | ||||||
| 24 | times. | ||||||
| 25 | (b) The term "fireworks plant" shall mean and include all | ||||||
| 26 | lands, with buildings thereon, used in connection with the | ||||||
| |||||||
| |||||||
| 1 | manufacture or processing of fireworks, as well as storehouses | ||||||
| 2 | located thereon for the storage of finished fireworks. | ||||||
| 3 | (c) The term "fireworks factory building" shall mean any | ||||||
| 4 | building or other structure in which the manufacture of | ||||||
| 5 | fireworks, or in which any processing involving fireworks is | ||||||
| 6 | carried on. | ||||||
| 7 | (d) The term "magazine" shall mean any building or other | ||||||
| 8 | structure used for the storage of explosive raw materials used | ||||||
| 9 | in the manufacture of fireworks. | ||||||
| 10 | (e) The term "Office" shall mean the Office of the State | ||||||
| 11 | Fire Marshal. | ||||||
| 12 | (Source: P.A. 83-474.)
| ||||||
| 13 | (425 ILCS 30/3.5) | ||||||
| 14 | Sec. 3.5. Sale and use prohibited on public property. A | ||||||
| 15 | municipality may, by ordinance, prohibit the sale and use of | ||||||
| 16 | sparklers or ground-based sparklers on public property. | ||||||
| 17 | (Source: P.A. 92-93, eff. 1-1-02.)
| ||||||
| 18 | (425 ILCS 30/3.6 new) | ||||||
| 19 | Sec. 3.6. Sale of ground-based sparklers. No ground-based | ||||||
| 20 | sparkler that (i) is nonexplosive and nonaerial, (ii) may | ||||||
| 21 | produce a crackling or whistling effect, and (iii) contains 75 | ||||||
| 22 | grams or less of pyrotechnic composition per tube or a total of | ||||||
| 23 | 500 grams or less for multiple tubes, such as cones, including | ||||||
| 24 | showers of sparks, fountains, repeaters, and cakes, may be | ||||||
| |||||||
| |||||||
| 1 | sold to a person under the age of 18 years.
| ||||||
| 2 | (425 ILCS 30/24) (from Ch. 127 1/2, par. 124) | ||||||
| 3 | Sec. 24. The provisions of this Act shall not be construed | ||||||
| 4 | or held to abrogate or in any way affect the power of cities, | ||||||
| 5 | villages, and incorporated towns to regulate, restrain, and | ||||||
| 6 | prohibit the use of fireworks, firecrackers, torpedoes, Roman | ||||||
| 7 | candles, skyrockets, ground-based sparklers, and other | ||||||
| 8 | pyrotechnic displays within their corporate limits. The | ||||||
| 9 | sections of this Act and every part of such sections are hereby | ||||||
| 10 | declared to be independent sections and parts of sections, and | ||||||
| 11 | the invalidity of any section or part thereof shall not affect | ||||||
| 12 | any other section or part of a section. | ||||||
| 13 | (Source: Laws 1935, p. 881.)
| ||||||
| 14 | Section 93-905. The Pyrotechnic Use Act is amended by | ||||||
| 15 | changing Section 1 and by adding Section 3.5 as follows:
| ||||||
| 16 | (425 ILCS 35/1) (from Ch. 127 1/2, par. 127) | ||||||
| 17 | Sec. 1. Definitions. As used in this Act, the following | ||||||
| 18 | words shall have the following meanings: | ||||||
| 19 | "1.3G fireworks" means those fireworks used for | ||||||
| 20 | professional outdoor displays and classified as fireworks | ||||||
| 21 | UN0333, UN0334, or UN0335 by the United States Department of | ||||||
| 22 | Transportation under 49 C.F.R. 172.101. | ||||||
| 23 | "Consumer distributor" means any person who distributes, | ||||||
| |||||||
| |||||||
| 1 | offers for sale, sells, or exchanges for consideration | ||||||
| 2 | consumer fireworks in Illinois to another distributor or | ||||||
| 3 | directly to any retailer or person for resale. | ||||||
| 4 | "Consumer fireworks" means those fireworks that must | ||||||
| 5 | comply with the construction, chemical composition, and | ||||||
| 6 | labeling regulations of the U.S. Consumer Products Safety | ||||||
| 7 | Commission, as set forth in 16 C.F.R. Parts 1500 and 1507, and | ||||||
| 8 | classified as fireworks UN0336 or UN0337 by the United States | ||||||
| 9 | Department of Transportation under 49 C.F.R. 172.101. | ||||||
| 10 | "Consumer fireworks" shall not include snake or glow worm | ||||||
| 11 | pellets; smoke devices; trick noisemakers known as "party | ||||||
| 12 | poppers", "booby traps", "snappers", "trick matches", | ||||||
| 13 | "cigarette loads", and "auto burglar alarms"; sparklers; | ||||||
| 14 | ground-based sparklers that (i) are nonexplosive and | ||||||
| 15 | nonaerial, (ii) may produce a crackling or whistling effect, | ||||||
| 16 | and (iii) contain 75 grams or less of pyrotechnic composition | ||||||
| 17 | per tube or a total of 500 grams or less for multiple tubes, | ||||||
| 18 | such as cones, including showers of sparks, fountains, | ||||||
| 19 | repeaters, and cakes; toy pistols, toy canes, toy guns, or | ||||||
| 20 | other devices in which paper or plastic caps containing | ||||||
| 21 | twenty-five hundredths grains or less of explosive compound | ||||||
| 22 | are used, provided they are so constructed that the hand | ||||||
| 23 | cannot come in contact with the cap when in place for the | ||||||
| 24 | explosion; and toy pistol paper or plastic caps that contain | ||||||
| 25 | less than twenty hundredths grains of explosive mixture; the | ||||||
| 26 | sale and use of which shall be permitted at all times. | ||||||
| |||||||
| |||||||
| 1 | "Consumer fireworks display" or "consumer display" means | ||||||
| 2 | the detonation, ignition, or deflagration of consumer | ||||||
| 3 | fireworks to produce a visual or audible effect. | ||||||
| 4 | "Consumer operator" means an adult individual who is | ||||||
| 5 | responsible for the safety, setup, and discharge of the | ||||||
| 6 | consumer fireworks display and who has completed the training | ||||||
| 7 | required in Section 2.2 of this Act. | ||||||
| 8 | "Consumer retailer" means any person who offers for sale, | ||||||
| 9 | sells, or exchanges for consideration consumer fireworks in | ||||||
| 10 | Illinois directly to any person with a consumer display | ||||||
| 11 | permit. | ||||||
| 12 | "Display fireworks" means 1.3G or special effects | ||||||
| 13 | fireworks or as further defined in the Pyrotechnic Distributor | ||||||
| 14 | and Operator Licensing Act. | ||||||
| 15 | "Flame effect" means the detonation, ignition, or | ||||||
| 16 | deflagration of flammable gases, liquids, or special materials | ||||||
| 17 | to produce a thermal, physical, visual, or audible effect | ||||||
| 18 | before the public, invitees, or licensees, regardless of | ||||||
| 19 | whether admission is charged, in accordance with National Fire | ||||||
| 20 | Protection Association 160 guidelines, and as may be further | ||||||
| 21 | defined in the Pyrotechnic Distributor and Operator Licensing | ||||||
| 22 | Act. | ||||||
| 23 | "Lead pyrotechnic operator" means an individual who is | ||||||
| 24 | responsible for the safety, setup, and discharge of the | ||||||
| 25 | pyrotechnic display or pyrotechnic service and who is licensed | ||||||
| 26 | pursuant to the Pyrotechnic Distributor and Operator Licensing | ||||||
| |||||||
| |||||||
| 1 | Act. | ||||||
| 2 | "Person" means an individual, firm, corporation, | ||||||
| 3 | association, partnership, company, consortium, joint venture, | ||||||
| 4 | commercial entity, state, municipality, or political | ||||||
| 5 | subdivision of a state or any agency, department, or | ||||||
| 6 | instrumentality of the United States and any officer, agent, | ||||||
| 7 | or employee of these entities. | ||||||
| 8 | "Production company" means any person in the film, digital | ||||||
| 9 | and video media, television, commercial, music, or theatrical | ||||||
| 10 | stage industry who provides pyrotechnic services or | ||||||
| 11 | pyrotechnic display services as part of a film, digital and | ||||||
| 12 | video media, television, commercial, music, or theatrical | ||||||
| 13 | production in the State of Illinois and is licensed by the | ||||||
| 14 | Office pursuant to the Pyrotechnic Distributor and Operator | ||||||
| 15 | Licensing Act. | ||||||
| 16 | "Pyrotechnic display" means the detonation, ignition, or | ||||||
| 17 | deflagration of display fireworks or flame effects to produce | ||||||
| 18 | visual or audible effects of an exhibitional nature before the | ||||||
| 19 | public, invitees, or licensees, regardless of whether | ||||||
| 20 | admission is charged, and as may be further defined in the | ||||||
| 21 | Pyrotechnic Distributor and Operator Licensing Act. | ||||||
| 22 | "Pyrotechnic distributor" means any person who distributes | ||||||
| 23 | display fireworks for sale in the State of Illinois or | ||||||
| 24 | provides them as part of a pyrotechnic display service in the | ||||||
| 25 | State of Illinois or provides only pyrotechnic services and is | ||||||
| 26 | licensed by the Office pursuant to the Pyrotechnic Distributor | ||||||
| |||||||
| |||||||
| 1 | and Operator Licensing Act. | ||||||
| 2 | "Pyrotechnic service" means the detonation, ignition, or | ||||||
| 3 | deflagration of display fireworks, special effects, or flame | ||||||
| 4 | effects to produce a visual or audible effect. | ||||||
| 5 | "Special effects fireworks" means pyrotechnic devices used | ||||||
| 6 | for special effects by professionals in the performing arts in | ||||||
| 7 | conjunction with theatrical, musical, or other productions | ||||||
| 8 | that are similar to consumer fireworks in chemical | ||||||
| 9 | compositions and construction, but are not intended for | ||||||
| 10 | consumer use and are not labeled as such or identified as | ||||||
| 11 | "intended for indoor use". "Special effects fireworks" are | ||||||
| 12 | classified as fireworks UN0431 or UN0432 by the United States | ||||||
| 13 | Department of Transportation under 49 C.F.R. 172.101. | ||||||
| 14 | (Source: P.A. 99-642, eff. 7-28-16.)
| ||||||
| 15 | (425 ILCS 35/3.5 new) | ||||||
| 16 | Sec. 3.5. Sale of ground-based sparklers. No ground-based | ||||||
| 17 | sparkler that (i) is nonexplosive and nonaerial, (ii) may | ||||||
| 18 | produce a crackling or whistling effect, and (iii) contains 75 | ||||||
| 19 | grams or less of pyrotechnic composition per tube or a total of | ||||||
| 20 | 500 grams or less for multiple tubes, such as cones, including | ||||||
| 21 | showers of sparks, fountains, repeaters, and cakes, may be | ||||||
| 22 | sold to a person under the age of 18 years.
| ||||||
| 23 | ARTICLE 95. | ||||||
| |||||||
| |||||||
| 1 | Section 95-5. The Property Tax Code is amended by changing | ||||||
| 2 | Section 20-130 as follows:
| ||||||
| 3 | (35 ILCS 200/20-130) | ||||||
| 4 | Sec. 20-130. Distribution of taxes in counties of less | ||||||
| 5 | than 3,000,000; return of erroneous distribution. | ||||||
| 6 | (a) All distributions of taxes collected and interest | ||||||
| 7 | earned thereon by a county on behalf of taxing districts must | ||||||
| 8 | be made by the county treasurer, in counties with less than | ||||||
| 9 | 3,000,000 inhabitants, within 30 days after the due date and | ||||||
| 10 | at 30 days intervals thereafter, unless the amount to be | ||||||
| 11 | distributed is less than $5. The county treasurer shall | ||||||
| 12 | distribute the taxes collected at the next 30-day interval if | ||||||
| 13 | the taxes collected are $5 or more. If the tax collections for | ||||||
| 14 | a taxing district are less than $5 for 3 consecutive 30-day | ||||||
| 15 | intervals, the county treasurer shall automatically distribute | ||||||
| 16 | the taxes collected to the unit of local government on the | ||||||
| 17 | third 30-day interval. All interest earned by a county on | ||||||
| 18 | behalf of taxing districts must be distributed by the county | ||||||
| 19 | treasurer, in counties with less than 3,000,000 inhabitants, | ||||||
| 20 | no later than the last distribution of taxes. The county | ||||||
| 21 | treasurer shall determine the manner in which all | ||||||
| 22 | distributions under this Section are to be made. The manner of | ||||||
| 23 | distribution may include, but is not limited to, check or | ||||||
| 24 | electronic funds transfer. | ||||||
| 25 | (b) Notwithstanding any other law to the contrary, if a | ||||||
| |||||||
| |||||||
| 1 | county makes an erroneous distribution of taxes collected and | ||||||
| 2 | interest earned thereon, upon majority vote of the governing | ||||||
| 3 | board of the taxing district that received the erroneous | ||||||
| 4 | distribution, the taxing district shall return the funds to | ||||||
| 5 | the county treasurer. | ||||||
| 6 | (Source: P.A. 91-378, eff. 7-30-99.)
| ||||||
| 7 | ARTICLE 100. | ||||||
| 8 | Section 100-5. The Illinois Income Tax Act is amended by | ||||||
| 9 | adding Section 244 as follows:
| ||||||
| 10 | (35 ILCS 5/244 new) | ||||||
| 11 | Sec. 244. Child tax credit. | ||||||
| 12 | (a) For the taxable years beginning on or after January 1, | ||||||
| 13 | 2024, each individual taxpayer who has at least one qualifying | ||||||
| 14 | child who is younger than 12 years of age as of the last day of | ||||||
| 15 | the taxable year is entitled to a credit against the tax | ||||||
| 16 | imposed by subsections (a) and (b) of Section 201. For tax | ||||||
| 17 | years beginning on or after January 1, 2024 and before January | ||||||
| 18 | 1, 2025, the credit shall be equal to 20% of the credit allowed | ||||||
| 19 | to the taxpayer under Section 212 of this Act for that taxable | ||||||
| 20 | year. For tax years beginning on or after January 1, 2025, the | ||||||
| 21 | amount of the credit shall be equal to 40% of the credit | ||||||
| 22 | allowed to the taxpayer under Section 212 of this Act for that | ||||||
| 23 | taxable year. | ||||||
| |||||||
| |||||||
| 1 | (b) If the amount of the credit exceeds the income tax | ||||||
| 2 | liability for the applicable tax year, then the excess credit | ||||||
| 3 | shall be refunded the taxpayer. The amount of the refund under | ||||||
| 4 | this Section shall not be included in the taxpayer's income or | ||||||
| 5 | resources for the purposes of determining eligibility or | ||||||
| 6 | benefit level in any means-tested benefit program administered | ||||||
| 7 | by a governmental entity unless required by federal law. | ||||||
| 8 | (c) The Department may adopt rules to carry out the | ||||||
| 9 | provisions of this Section. | ||||||
| 10 | (d) As used in this Section, "qualifying child" has the | ||||||
| 11 | meaning given to that term in Section 152 of the Internal | ||||||
| 12 | Revenue Code. | ||||||
| 13 | (e) This Section is exempt from the provisions of Section | ||||||
| 14 | 250.
| ||||||
| 15 | ARTICLE 105. | ||||||
| 16 | Section 105-5. The Illinois Income Tax Act is amended by | ||||||
| 17 | changing Section 207 as follows:
| ||||||
| 18 | (35 ILCS 5/207) (from Ch. 120, par. 2-207) | ||||||
| 19 | Sec. 207. Net Losses. | ||||||
| 20 | (a) If after applying all of the (i) modifications | ||||||
| 21 | provided for in paragraph (2) of Section 203(b), paragraph (2) | ||||||
| 22 | of Section 203(c) and paragraph (2) of Section 203(d) and (ii) | ||||||
| 23 | the allocation and apportionment provisions of Article 3 of | ||||||
| |||||||
| |||||||
| 1 | this Act and subsection (c) of this Section, the taxpayer's | ||||||
| 2 | net income results in a loss; | ||||||
| 3 | (1) for any taxable year ending prior to December 31, | ||||||
| 4 | 1999, such loss shall be allowed as a carryover or | ||||||
| 5 | carryback deduction in the manner allowed under Section | ||||||
| 6 | 172 of the Internal Revenue Code; | ||||||
| 7 | (2) for any taxable year ending on or after December | ||||||
| 8 | 31, 1999 and prior to December 31, 2003, such loss shall be | ||||||
| 9 | allowed as a carryback to each of the 2 taxable years | ||||||
| 10 | preceding the taxable year of such loss and shall be a net | ||||||
| 11 | operating loss carryover to each of the 20 taxable years | ||||||
| 12 | following the taxable year of such loss; | ||||||
| 13 | (3) for any taxable year ending on or after December | ||||||
| 14 | 31, 2003 and prior to December 31, 2021, such loss shall be | ||||||
| 15 | allowed as a net operating loss carryover to each of the 12 | ||||||
| 16 | taxable years following the taxable year of such loss, | ||||||
| 17 | except as provided in subsection (d); and | ||||||
| 18 | (4) for any taxable year ending on or after December | ||||||
| 19 | 31, 2021, and for any net loss incurred in a taxable year | ||||||
| 20 | prior to a taxable year ending on or after December 31, | ||||||
| 21 | 2021 for which the statute of limitation for utilization | ||||||
| 22 | of such net loss has not expired, such loss shall be | ||||||
| 23 | allowed as a net operating loss carryover to each of the 20 | ||||||
| 24 | taxable years following the taxable year of such loss, | ||||||
| 25 | except as provided in subsection (d). | ||||||
| 26 | (a-5) Election to relinquish carryback and order of | ||||||
| |||||||
| |||||||
| 1 | application of losses. | ||||||
| 2 | (A) For losses incurred in tax years ending prior | ||||||
| 3 | to December 31, 2003, the taxpayer may elect to | ||||||
| 4 | relinquish the entire carryback period with respect to | ||||||
| 5 | such loss. Such election shall be made in the form and | ||||||
| 6 | manner prescribed by the Department and shall be made | ||||||
| 7 | by the due date (including extensions of time) for | ||||||
| 8 | filing the taxpayer's return for the taxable year in | ||||||
| 9 | which such loss is incurred, and such election, once | ||||||
| 10 | made, shall be irrevocable. | ||||||
| 11 | (B) The entire amount of such loss shall be | ||||||
| 12 | carried to the earliest taxable year to which such | ||||||
| 13 | loss may be carried. The amount of such loss which | ||||||
| 14 | shall be carried to each of the other taxable years | ||||||
| 15 | shall be the excess, if any, of the amount of such loss | ||||||
| 16 | over the sum of the deductions for carryback or | ||||||
| 17 | carryover of such loss allowable for each of the prior | ||||||
| 18 | taxable years to which such loss may be carried. | ||||||
| 19 | (b) Any loss determined under subsection (a) of this | ||||||
| 20 | Section must be carried back or carried forward in the same | ||||||
| 21 | manner for purposes of subsections (a) and (b) of Section 201 | ||||||
| 22 | of this Act as for purposes of subsections (c) and (d) of | ||||||
| 23 | Section 201 of this Act. | ||||||
| 24 | (c) Notwithstanding any other provision of this Act, for | ||||||
| 25 | each taxable year ending on or after December 31, 2008, for | ||||||
| 26 | purposes of computing the loss for the taxable year under | ||||||
| |||||||
| |||||||
| 1 | subsection (a) of this Section and the deduction taken into | ||||||
| 2 | account for the taxable year for a net operating loss | ||||||
| 3 | carryover under paragraphs (1), (2), and (3) of subsection (a) | ||||||
| 4 | of this Section, the loss and net operating loss carryover | ||||||
| 5 | shall be reduced in an amount equal to the reduction to the net | ||||||
| 6 | operating loss and net operating loss carryover to the taxable | ||||||
| 7 | year, respectively, required under Section 108(b)(2)(A) of the | ||||||
| 8 | Internal Revenue Code, multiplied by a fraction, the numerator | ||||||
| 9 | of which is the amount of discharge of indebtedness income | ||||||
| 10 | that is excluded from gross income for the taxable year (but | ||||||
| 11 | only if the taxable year ends on or after December 31, 2008) | ||||||
| 12 | under Section 108(a) of the Internal Revenue Code and that | ||||||
| 13 | would have been allocated and apportioned to this State under | ||||||
| 14 | Article 3 of this Act but for that exclusion, and the | ||||||
| 15 | denominator of which is the total amount of discharge of | ||||||
| 16 | indebtedness income excluded from gross income under Section | ||||||
| 17 | 108(a) of the Internal Revenue Code for the taxable year. The | ||||||
| 18 | reduction required under this subsection (c) shall be made | ||||||
| 19 | after the determination of Illinois net income for the taxable | ||||||
| 20 | year in which the indebtedness is discharged. | ||||||
| 21 | (d) In the case of a corporation (other than a Subchapter S | ||||||
| 22 | corporation): , | ||||||
| 23 | (1) no carryover deduction shall be allowed under this | ||||||
| 24 | Section for any taxable year ending after December 31, | ||||||
| 25 | 2010 and prior to December 31, 2012; , and | ||||||
| 26 | (2) no carryover deduction shall exceed $100,000 for | ||||||
| |||||||
| |||||||
| 1 | any taxable year ending on or after December 31, 2012 and | ||||||
| 2 | prior to December 31, 2014 and for any taxable year ending | ||||||
| 3 | on or after December 31, 2021 and prior to December 31, | ||||||
| 4 | 2024; and | ||||||
| 5 | (3) no carryover deduction shall exceed $500,000 for | ||||||
| 6 | any taxable year ending on or after December 31, 2024. | ||||||
| 7 | For the provided that, for purposes of determining the | ||||||
| 8 | taxable years to which a net loss may be carried under | ||||||
| 9 | subsection (a) of this Section, no taxable year for which a | ||||||
| 10 | deduction is disallowed under this subsection, or for which | ||||||
| 11 | the deduction would exceed $100,000 or $500,000, as | ||||||
| 12 | applicable, if not for this subsection, shall be counted. | ||||||
| 13 | (e) In the case of a residual interest holder in a real | ||||||
| 14 | estate mortgage investment conduit subject to Section 860E of | ||||||
| 15 | the Internal Revenue Code, the net loss in subsection (a) | ||||||
| 16 | shall be equal to: | ||||||
| 17 | (1) the amount computed under subsection (a), without | ||||||
| 18 | regard to this subsection (e), or if that amount is | ||||||
| 19 | positive, zero; | ||||||
| 20 | (2) minus an amount equal to the amount computed under | ||||||
| 21 | subsection (a), without regard to this subsection (e), | ||||||
| 22 | minus the amount that would be computed under subsection | ||||||
| 23 | (a) if the taxpayer's federal taxable income were computed | ||||||
| 24 | without regard to Section 860E of the Internal Revenue | ||||||
| 25 | Code and without regard to this subsection (e). | ||||||
| 26 | The modification in this subsection (e) is exempt from the | ||||||
| |||||||
| |||||||
| 1 | provisions of Section 250. | ||||||
| 2 | (Source: P.A. 102-16, eff. 6-17-21; 102-669, eff. 11-16-21.)
| ||||||
| 3 | ARTICLE 110. | ||||||
| 4 | Section 110-5. The Use Tax Act is amended by changing | ||||||
| 5 | Section 9 as follows:
| ||||||
| 6 | (35 ILCS 105/9) (from Ch. 120, par. 439.9) | ||||||
| 7 | Sec. 9. Except as to motor vehicles, watercraft, aircraft, | ||||||
| 8 | and trailers that are required to be registered with an agency | ||||||
| 9 | of this State, each retailer required or authorized to collect | ||||||
| 10 | the tax imposed by this Act shall pay to the Department the | ||||||
| 11 | amount of such tax (except as otherwise provided) at the time | ||||||
| 12 | when he is required to file his return for the period during | ||||||
| 13 | which such tax was collected, less a discount of 2.1% prior to | ||||||
| 14 | January 1, 1990, and 1.75% on and after January 1, 1990, or $5 | ||||||
| 15 | per calendar year, whichever is greater, which is allowed to | ||||||
| 16 | reimburse the retailer for expenses incurred in collecting the | ||||||
| 17 | tax, keeping records, preparing and filing returns, remitting | ||||||
| 18 | the tax and supplying data to the Department on request. | ||||||
| 19 | Beginning with returns due on or after January 1, 2025, the | ||||||
| 20 | discount allowed in this Section, the Retailers' Occupation | ||||||
| 21 | Tax Act, the Service Occupation Tax Act, and the Service Use | ||||||
| 22 | Tax Act, including any local tax administered by the | ||||||
| 23 | Department and reported on the same return, shall not exceed | ||||||
| |||||||
| |||||||
| 1 | $1,000 per month in the aggregate for returns other than | ||||||
| 2 | transaction returns filed during the month. When determining | ||||||
| 3 | the discount allowed under this Section, retailers shall | ||||||
| 4 | include the amount of tax that would have been due at the 6.25% | ||||||
| 5 | rate but for the 1.25% rate imposed on sales tax holiday items | ||||||
| 6 | under Public Act 102-700. The discount under this Section is | ||||||
| 7 | not allowed for the 1.25% portion of taxes paid on aviation | ||||||
| 8 | fuel that is subject to the revenue use requirements of 49 | ||||||
| 9 | U.S.C. 47107(b) and 49 U.S.C. 47133. When determining the | ||||||
| 10 | discount allowed under this Section, retailers shall include | ||||||
| 11 | the amount of tax that would have been due at the 1% rate but | ||||||
| 12 | for the 0% rate imposed under Public Act 102-700. In the case | ||||||
| 13 | of retailers who report and pay the tax on a transaction by | ||||||
| 14 | transaction basis, as provided in this Section, such discount | ||||||
| 15 | shall be taken with each such tax remittance instead of when | ||||||
| 16 | such retailer files his periodic return, but, beginning with | ||||||
| 17 | returns due on or after January 1, 2025, the discount allowed | ||||||
| 18 | under this Section and the Retailers' Occupation Tax Act, | ||||||
| 19 | including any local tax administered by the Department and | ||||||
| 20 | reported on the same transaction return, shall not exceed | ||||||
| 21 | $1,000 per month for all transaction returns filed during the | ||||||
| 22 | month. The discount allowed under this Section is allowed only | ||||||
| 23 | for returns that are filed in the manner required by this Act. | ||||||
| 24 | The Department may disallow the discount for retailers whose | ||||||
| 25 | certificate of registration is revoked at the time the return | ||||||
| 26 | is filed, but only if the Department's decision to revoke the | ||||||
| |||||||
| |||||||
| 1 | certificate of registration has become final. A retailer need | ||||||
| 2 | not remit that part of any tax collected by him to the extent | ||||||
| 3 | that he is required to remit and does remit the tax imposed by | ||||||
| 4 | the Retailers' Occupation Tax Act, with respect to the sale of | ||||||
| 5 | the same property. | ||||||
| 6 | Where such tangible personal property is sold under a | ||||||
| 7 | conditional sales contract, or under any other form of sale | ||||||
| 8 | wherein the payment of the principal sum, or a part thereof, is | ||||||
| 9 | extended beyond the close of the period for which the return is | ||||||
| 10 | filed, the retailer, in collecting the tax (except as to motor | ||||||
| 11 | vehicles, watercraft, aircraft, and trailers that are required | ||||||
| 12 | to be registered with an agency of this State), may collect for | ||||||
| 13 | each tax return period, only the tax applicable to that part of | ||||||
| 14 | the selling price actually received during such tax return | ||||||
| 15 | period. | ||||||
| 16 | Except as provided in this Section, on or before the | ||||||
| 17 | twentieth day of each calendar month, such retailer shall file | ||||||
| 18 | a return for the preceding calendar month. Such return shall | ||||||
| 19 | be filed on forms prescribed by the Department and shall | ||||||
| 20 | furnish such information as the Department may reasonably | ||||||
| 21 | require. The return shall include the gross receipts on food | ||||||
| 22 | for human consumption that is to be consumed off the premises | ||||||
| 23 | where it is sold (other than alcoholic beverages, food | ||||||
| 24 | consisting of or infused with adult use cannabis, soft drinks, | ||||||
| 25 | and food that has been prepared for immediate consumption) | ||||||
| 26 | which were received during the preceding calendar month, | ||||||
| |||||||
| |||||||
| 1 | quarter, or year, as appropriate, and upon which tax would | ||||||
| 2 | have been due but for the 0% rate imposed under Public Act | ||||||
| 3 | 102-700. The return shall also include the amount of tax that | ||||||
| 4 | would have been due on food for human consumption that is to be | ||||||
| 5 | consumed off the premises where it is sold (other than | ||||||
| 6 | alcoholic beverages, food consisting of or infused with adult | ||||||
| 7 | use cannabis, soft drinks, and food that has been prepared for | ||||||
| 8 | immediate consumption) but for the 0% rate imposed under | ||||||
| 9 | Public Act 102-700. | ||||||
| 10 | On and after January 1, 2018, except for returns required | ||||||
| 11 | to be filed prior to January 1, 2023 for motor vehicles, | ||||||
| 12 | watercraft, aircraft, and trailers that are required to be | ||||||
| 13 | registered with an agency of this State, with respect to | ||||||
| 14 | retailers whose annual gross receipts average $20,000 or more, | ||||||
| 15 | all returns required to be filed pursuant to this Act shall be | ||||||
| 16 | filed electronically. On and after January 1, 2023, with | ||||||
| 17 | respect to retailers whose annual gross receipts average | ||||||
| 18 | $20,000 or more, all returns required to be filed pursuant to | ||||||
| 19 | this Act, including, but not limited to, returns for motor | ||||||
| 20 | vehicles, watercraft, aircraft, and trailers that are required | ||||||
| 21 | to be registered with an agency of this State, shall be filed | ||||||
| 22 | electronically. Retailers who demonstrate that they do not | ||||||
| 23 | have access to the Internet or demonstrate hardship in filing | ||||||
| 24 | electronically may petition the Department to waive the | ||||||
| 25 | electronic filing requirement. | ||||||
| 26 | The Department may require returns to be filed on a | ||||||
| |||||||
| |||||||
| 1 | quarterly basis. If so required, a return for each calendar | ||||||
| 2 | quarter shall be filed on or before the twentieth day of the | ||||||
| 3 | calendar month following the end of such calendar quarter. The | ||||||
| 4 | taxpayer shall also file a return with the Department for each | ||||||
| 5 | of the first two months of each calendar quarter, on or before | ||||||
| 6 | the twentieth day of the following calendar month, stating: | ||||||
| 7 | 1. The name of the seller; | ||||||
| 8 | 2. The address of the principal place of business from | ||||||
| 9 | which he engages in the business of selling tangible | ||||||
| 10 | personal property at retail in this State; | ||||||
| 11 | 3. The total amount of taxable receipts received by | ||||||
| 12 | him during the preceding calendar month from sales of | ||||||
| 13 | tangible personal property by him during such preceding | ||||||
| 14 | calendar month, including receipts from charge and time | ||||||
| 15 | sales, but less all deductions allowed by law; | ||||||
| 16 | 4. The amount of credit provided in Section 2d of this | ||||||
| 17 | Act; | ||||||
| 18 | 5. The amount of tax due; | ||||||
| 19 | 5-5. The signature of the taxpayer; and | ||||||
| 20 | 6. Such other reasonable information as the Department | ||||||
| 21 | may require. | ||||||
| 22 | Each retailer required or authorized to collect the tax | ||||||
| 23 | imposed by this Act on aviation fuel sold at retail in this | ||||||
| 24 | State during the preceding calendar month shall, instead of | ||||||
| 25 | reporting and paying tax on aviation fuel as otherwise | ||||||
| 26 | required by this Section, report and pay such tax on a separate | ||||||
| |||||||
| |||||||
| 1 | aviation fuel tax return. The requirements related to the | ||||||
| 2 | return shall be as otherwise provided in this Section. | ||||||
| 3 | Notwithstanding any other provisions of this Act to the | ||||||
| 4 | contrary, retailers collecting tax on aviation fuel shall file | ||||||
| 5 | all aviation fuel tax returns and shall make all aviation fuel | ||||||
| 6 | tax payments by electronic means in the manner and form | ||||||
| 7 | required by the Department. For purposes of this Section, | ||||||
| 8 | "aviation fuel" means jet fuel and aviation gasoline. | ||||||
| 9 | If a taxpayer fails to sign a return within 30 days after | ||||||
| 10 | the proper notice and demand for signature by the Department, | ||||||
| 11 | the return shall be considered valid and any amount shown to be | ||||||
| 12 | due on the return shall be deemed assessed. | ||||||
| 13 | Notwithstanding any other provision of this Act to the | ||||||
| 14 | contrary, retailers subject to tax on cannabis shall file all | ||||||
| 15 | cannabis tax returns and shall make all cannabis tax payments | ||||||
| 16 | by electronic means in the manner and form required by the | ||||||
| 17 | Department. | ||||||
| 18 | Beginning October 1, 1993, a taxpayer who has an average | ||||||
| 19 | monthly tax liability of $150,000 or more shall make all | ||||||
| 20 | payments required by rules of the Department by electronic | ||||||
| 21 | funds transfer. Beginning October 1, 1994, a taxpayer who has | ||||||
| 22 | an average monthly tax liability of $100,000 or more shall | ||||||
| 23 | make all payments required by rules of the Department by | ||||||
| 24 | electronic funds transfer. Beginning October 1, 1995, a | ||||||
| 25 | taxpayer who has an average monthly tax liability of $50,000 | ||||||
| 26 | or more shall make all payments required by rules of the | ||||||
| |||||||
| |||||||
| 1 | Department by electronic funds transfer. Beginning October 1, | ||||||
| 2 | 2000, a taxpayer who has an annual tax liability of $200,000 or | ||||||
| 3 | more shall make all payments required by rules of the | ||||||
| 4 | Department by electronic funds transfer. The term "annual tax | ||||||
| 5 | liability" shall be the sum of the taxpayer's liabilities | ||||||
| 6 | under this Act, and under all other State and local occupation | ||||||
| 7 | and use tax laws administered by the Department, for the | ||||||
| 8 | immediately preceding calendar year. The term "average monthly | ||||||
| 9 | tax liability" means the sum of the taxpayer's liabilities | ||||||
| 10 | under this Act, and under all other State and local occupation | ||||||
| 11 | and use tax laws administered by the Department, for the | ||||||
| 12 | immediately preceding calendar year divided by 12. Beginning | ||||||
| 13 | on October 1, 2002, a taxpayer who has a tax liability in the | ||||||
| 14 | amount set forth in subsection (b) of Section 2505-210 of the | ||||||
| 15 | Department of Revenue Law shall make all payments required by | ||||||
| 16 | rules of the Department by electronic funds transfer. | ||||||
| 17 | Before August 1 of each year beginning in 1993, the | ||||||
| 18 | Department shall notify all taxpayers required to make | ||||||
| 19 | payments by electronic funds transfer. All taxpayers required | ||||||
| 20 | to make payments by electronic funds transfer shall make those | ||||||
| 21 | payments for a minimum of one year beginning on October 1. | ||||||
| 22 | Any taxpayer not required to make payments by electronic | ||||||
| 23 | funds transfer may make payments by electronic funds transfer | ||||||
| 24 | with the permission of the Department. | ||||||
| 25 | All taxpayers required to make payment by electronic funds | ||||||
| 26 | transfer and any taxpayers authorized to voluntarily make | ||||||
| |||||||
| |||||||
| 1 | payments by electronic funds transfer shall make those | ||||||
| 2 | payments in the manner authorized by the Department. | ||||||
| 3 | The Department shall adopt such rules as are necessary to | ||||||
| 4 | effectuate a program of electronic funds transfer and the | ||||||
| 5 | requirements of this Section. | ||||||
| 6 | Before October 1, 2000, if the taxpayer's average monthly | ||||||
| 7 | tax liability to the Department under this Act, the Retailers' | ||||||
| 8 | Occupation Tax Act, the Service Occupation Tax Act, the | ||||||
| 9 | Service Use Tax Act was $10,000 or more during the preceding 4 | ||||||
| 10 | complete calendar quarters, he shall file a return with the | ||||||
| 11 | Department each month by the 20th day of the month next | ||||||
| 12 | following the month during which such tax liability is | ||||||
| 13 | incurred and shall make payments to the Department on or | ||||||
| 14 | before the 7th, 15th, 22nd and last day of the month during | ||||||
| 15 | which such liability is incurred. On and after October 1, | ||||||
| 16 | 2000, if the taxpayer's average monthly tax liability to the | ||||||
| 17 | Department under this Act, the Retailers' Occupation Tax Act, | ||||||
| 18 | the Service Occupation Tax Act, and the Service Use Tax Act was | ||||||
| 19 | $20,000 or more during the preceding 4 complete calendar | ||||||
| 20 | quarters, he shall file a return with the Department each | ||||||
| 21 | month by the 20th day of the month next following the month | ||||||
| 22 | during which such tax liability is incurred and shall make | ||||||
| 23 | payment to the Department on or before the 7th, 15th, 22nd and | ||||||
| 24 | last day of the month during which such liability is incurred. | ||||||
| 25 | If the month during which such tax liability is incurred began | ||||||
| 26 | prior to January 1, 1985, each payment shall be in an amount | ||||||
| |||||||
| |||||||
| 1 | equal to 1/4 of the taxpayer's actual liability for the month | ||||||
| 2 | or an amount set by the Department not to exceed 1/4 of the | ||||||
| 3 | average monthly liability of the taxpayer to the Department | ||||||
| 4 | for the preceding 4 complete calendar quarters (excluding the | ||||||
| 5 | month of highest liability and the month of lowest liability | ||||||
| 6 | in such 4 quarter period). If the month during which such tax | ||||||
| 7 | liability is incurred begins on or after January 1, 1985, and | ||||||
| 8 | prior to January 1, 1987, each payment shall be in an amount | ||||||
| 9 | equal to 22.5% of the taxpayer's actual liability for the | ||||||
| 10 | month or 27.5% of the taxpayer's liability for the same | ||||||
| 11 | calendar month of the preceding year. If the month during | ||||||
| 12 | which such tax liability is incurred begins on or after | ||||||
| 13 | January 1, 1987, and prior to January 1, 1988, each payment | ||||||
| 14 | shall be in an amount equal to 22.5% of the taxpayer's actual | ||||||
| 15 | liability for the month or 26.25% of the taxpayer's liability | ||||||
| 16 | for the same calendar month of the preceding year. If the month | ||||||
| 17 | during which such tax liability is incurred begins on or after | ||||||
| 18 | January 1, 1988, and prior to January 1, 1989, or begins on or | ||||||
| 19 | after January 1, 1996, each payment shall be in an amount equal | ||||||
| 20 | to 22.5% of the taxpayer's actual liability for the month or | ||||||
| 21 | 25% of the taxpayer's liability for the same calendar month of | ||||||
| 22 | the preceding year. If the month during which such tax | ||||||
| 23 | liability is incurred begins on or after January 1, 1989, and | ||||||
| 24 | prior to January 1, 1996, each payment shall be in an amount | ||||||
| 25 | equal to 22.5% of the taxpayer's actual liability for the | ||||||
| 26 | month or 25% of the taxpayer's liability for the same calendar | ||||||
| |||||||
| |||||||
| 1 | month of the preceding year or 100% of the taxpayer's actual | ||||||
| 2 | liability for the quarter monthly reporting period. The amount | ||||||
| 3 | of such quarter monthly payments shall be credited against the | ||||||
| 4 | final tax liability of the taxpayer's return for that month. | ||||||
| 5 | Before October 1, 2000, once applicable, the requirement of | ||||||
| 6 | the making of quarter monthly payments to the Department shall | ||||||
| 7 | continue until such taxpayer's average monthly liability to | ||||||
| 8 | the Department during the preceding 4 complete calendar | ||||||
| 9 | quarters (excluding the month of highest liability and the | ||||||
| 10 | month of lowest liability) is less than $9,000, or until such | ||||||
| 11 | taxpayer's average monthly liability to the Department as | ||||||
| 12 | computed for each calendar quarter of the 4 preceding complete | ||||||
| 13 | calendar quarter period is less than $10,000. However, if a | ||||||
| 14 | taxpayer can show the Department that a substantial change in | ||||||
| 15 | the taxpayer's business has occurred which causes the taxpayer | ||||||
| 16 | to anticipate that his average monthly tax liability for the | ||||||
| 17 | reasonably foreseeable future will fall below the $10,000 | ||||||
| 18 | threshold stated above, then such taxpayer may petition the | ||||||
| 19 | Department for change in such taxpayer's reporting status. On | ||||||
| 20 | and after October 1, 2000, once applicable, the requirement of | ||||||
| 21 | the making of quarter monthly payments to the Department shall | ||||||
| 22 | continue until such taxpayer's average monthly liability to | ||||||
| 23 | the Department during the preceding 4 complete calendar | ||||||
| 24 | quarters (excluding the month of highest liability and the | ||||||
| 25 | month of lowest liability) is less than $19,000 or until such | ||||||
| 26 | taxpayer's average monthly liability to the Department as | ||||||
| |||||||
| |||||||
| 1 | computed for each calendar quarter of the 4 preceding complete | ||||||
| 2 | calendar quarter period is less than $20,000. However, if a | ||||||
| 3 | taxpayer can show the Department that a substantial change in | ||||||
| 4 | the taxpayer's business has occurred which causes the taxpayer | ||||||
| 5 | to anticipate that his average monthly tax liability for the | ||||||
| 6 | reasonably foreseeable future will fall below the $20,000 | ||||||
| 7 | threshold stated above, then such taxpayer may petition the | ||||||
| 8 | Department for a change in such taxpayer's reporting status. | ||||||
| 9 | The Department shall change such taxpayer's reporting status | ||||||
| 10 | unless it finds that such change is seasonal in nature and not | ||||||
| 11 | likely to be long term. Quarter monthly payment status shall | ||||||
| 12 | be determined under this paragraph as if the rate reduction to | ||||||
| 13 | 1.25% in Public Act 102-700 on sales tax holiday items had not | ||||||
| 14 | occurred. For quarter monthly payments due on or after July 1, | ||||||
| 15 | 2023 and through June 30, 2024, "25% of the taxpayer's | ||||||
| 16 | liability for the same calendar month of the preceding year" | ||||||
| 17 | shall be determined as if the rate reduction to 1.25% in Public | ||||||
| 18 | Act 102-700 on sales tax holiday items had not occurred. | ||||||
| 19 | Quarter monthly payment status shall be determined under this | ||||||
| 20 | paragraph as if the rate reduction to 0% in Public Act 102-700 | ||||||
| 21 | on food for human consumption that is to be consumed off the | ||||||
| 22 | premises where it is sold (other than alcoholic beverages, | ||||||
| 23 | food consisting of or infused with adult use cannabis, soft | ||||||
| 24 | drinks, and food that has been prepared for immediate | ||||||
| 25 | consumption) had not occurred. For quarter monthly payments | ||||||
| 26 | due under this paragraph on or after July 1, 2023 and through | ||||||
| |||||||
| |||||||
| 1 | June 30, 2024, "25% of the taxpayer's liability for the same | ||||||
| 2 | calendar month of the preceding year" shall be determined as | ||||||
| 3 | if the rate reduction to 0% in Public Act 102-700 had not | ||||||
| 4 | occurred. If any such quarter monthly payment is not paid at | ||||||
| 5 | the time or in the amount required by this Section, then the | ||||||
| 6 | taxpayer shall be liable for penalties and interest on the | ||||||
| 7 | difference between the minimum amount due and the amount of | ||||||
| 8 | such quarter monthly payment actually and timely paid, except | ||||||
| 9 | insofar as the taxpayer has previously made payments for that | ||||||
| 10 | month to the Department in excess of the minimum payments | ||||||
| 11 | previously due as provided in this Section. The Department | ||||||
| 12 | shall make reasonable rules and regulations to govern the | ||||||
| 13 | quarter monthly payment amount and quarter monthly payment | ||||||
| 14 | dates for taxpayers who file on other than a calendar monthly | ||||||
| 15 | basis. | ||||||
| 16 | If any such payment provided for in this Section exceeds | ||||||
| 17 | the taxpayer's liabilities under this Act, the Retailers' | ||||||
| 18 | Occupation Tax Act, the Service Occupation Tax Act and the | ||||||
| 19 | Service Use Tax Act, as shown by an original monthly return, | ||||||
| 20 | the Department shall issue to the taxpayer a credit memorandum | ||||||
| 21 | no later than 30 days after the date of payment, which | ||||||
| 22 | memorandum may be submitted by the taxpayer to the Department | ||||||
| 23 | in payment of tax liability subsequently to be remitted by the | ||||||
| 24 | taxpayer to the Department or be assigned by the taxpayer to a | ||||||
| 25 | similar taxpayer under this Act, the Retailers' Occupation Tax | ||||||
| 26 | Act, the Service Occupation Tax Act or the Service Use Tax Act, | ||||||
| |||||||
| |||||||
| 1 | in accordance with reasonable rules and regulations to be | ||||||
| 2 | prescribed by the Department, except that if such excess | ||||||
| 3 | payment is shown on an original monthly return and is made | ||||||
| 4 | after December 31, 1986, no credit memorandum shall be issued, | ||||||
| 5 | unless requested by the taxpayer. If no such request is made, | ||||||
| 6 | the taxpayer may credit such excess payment against tax | ||||||
| 7 | liability subsequently to be remitted by the taxpayer to the | ||||||
| 8 | Department under this Act, the Retailers' Occupation Tax Act, | ||||||
| 9 | the Service Occupation Tax Act or the Service Use Tax Act, in | ||||||
| 10 | accordance with reasonable rules and regulations prescribed by | ||||||
| 11 | the Department. If the Department subsequently determines that | ||||||
| 12 | all or any part of the credit taken was not actually due to the | ||||||
| 13 | taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall | ||||||
| 14 | be reduced, if necessary, to reflect by 2.1% or 1.75% of the | ||||||
| 15 | difference between the credit taken and that actually due, and | ||||||
| 16 | the taxpayer shall be liable for penalties and interest on | ||||||
| 17 | such difference. | ||||||
| 18 | If the retailer is otherwise required to file a monthly | ||||||
| 19 | return and if the retailer's average monthly tax liability to | ||||||
| 20 | the Department does not exceed $200, the Department may | ||||||
| 21 | authorize his returns to be filed on a quarter annual basis, | ||||||
| 22 | with the return for January, February, and March of a given | ||||||
| 23 | year being due by April 20 of such year; with the return for | ||||||
| 24 | April, May and June of a given year being due by July 20 of | ||||||
| 25 | such year; with the return for July, August and September of a | ||||||
| 26 | given year being due by October 20 of such year, and with the | ||||||
| |||||||
| |||||||
| 1 | return for October, November and December of a given year | ||||||
| 2 | being due by January 20 of the following year. | ||||||
| 3 | If the retailer is otherwise required to file a monthly or | ||||||
| 4 | quarterly return and if the retailer's average monthly tax | ||||||
| 5 | liability to the Department does not exceed $50, the | ||||||
| 6 | Department may authorize his returns to be filed on an annual | ||||||
| 7 | basis, with the return for a given year being due by January 20 | ||||||
| 8 | of the following year. | ||||||
| 9 | Such quarter annual and annual returns, as to form and | ||||||
| 10 | substance, shall be subject to the same requirements as | ||||||
| 11 | monthly returns. | ||||||
| 12 | Notwithstanding any other provision in this Act concerning | ||||||
| 13 | the time within which a retailer may file his return, in the | ||||||
| 14 | case of any retailer who ceases to engage in a kind of business | ||||||
| 15 | which makes him responsible for filing returns under this Act, | ||||||
| 16 | such retailer shall file a final return under this Act with the | ||||||
| 17 | Department not more than one month after discontinuing such | ||||||
| 18 | business. | ||||||
| 19 | In addition, with respect to motor vehicles, watercraft, | ||||||
| 20 | aircraft, and trailers that are required to be registered with | ||||||
| 21 | an agency of this State, except as otherwise provided in this | ||||||
| 22 | Section, every retailer selling this kind of tangible personal | ||||||
| 23 | property shall file, with the Department, upon a form to be | ||||||
| 24 | prescribed and supplied by the Department, a separate return | ||||||
| 25 | for each such item of tangible personal property which the | ||||||
| 26 | retailer sells, except that if, in the same transaction, (i) a | ||||||
| |||||||
| |||||||
| 1 | retailer of aircraft, watercraft, motor vehicles or trailers | ||||||
| 2 | transfers more than one aircraft, watercraft, motor vehicle or | ||||||
| 3 | trailer to another aircraft, watercraft, motor vehicle or | ||||||
| 4 | trailer retailer for the purpose of resale or (ii) a retailer | ||||||
| 5 | of aircraft, watercraft, motor vehicles, or trailers transfers | ||||||
| 6 | more than one aircraft, watercraft, motor vehicle, or trailer | ||||||
| 7 | to a purchaser for use as a qualifying rolling stock as | ||||||
| 8 | provided in Section 3-55 of this Act, then that seller may | ||||||
| 9 | report the transfer of all the aircraft, watercraft, motor | ||||||
| 10 | vehicles or trailers involved in that transaction to the | ||||||
| 11 | Department on the same uniform invoice-transaction reporting | ||||||
| 12 | return form. For purposes of this Section, "watercraft" means | ||||||
| 13 | a Class 2, Class 3, or Class 4 watercraft as defined in Section | ||||||
| 14 | 3-2 of the Boat Registration and Safety Act, a personal | ||||||
| 15 | watercraft, or any boat equipped with an inboard motor. | ||||||
| 16 | In addition, with respect to motor vehicles, watercraft, | ||||||
| 17 | aircraft, and trailers that are required to be registered with | ||||||
| 18 | an agency of this State, every person who is engaged in the | ||||||
| 19 | business of leasing or renting such items and who, in | ||||||
| 20 | connection with such business, sells any such item to a | ||||||
| 21 | retailer for the purpose of resale is, notwithstanding any | ||||||
| 22 | other provision of this Section to the contrary, authorized to | ||||||
| 23 | meet the return-filing requirement of this Act by reporting | ||||||
| 24 | the transfer of all the aircraft, watercraft, motor vehicles, | ||||||
| 25 | or trailers transferred for resale during a month to the | ||||||
| 26 | Department on the same uniform invoice-transaction reporting | ||||||
| |||||||
| |||||||
| 1 | return form on or before the 20th of the month following the | ||||||
| 2 | month in which the transfer takes place. Notwithstanding any | ||||||
| 3 | other provision of this Act to the contrary, all returns filed | ||||||
| 4 | under this paragraph must be filed by electronic means in the | ||||||
| 5 | manner and form as required by the Department. | ||||||
| 6 | The transaction reporting return in the case of motor | ||||||
| 7 | vehicles or trailers that are required to be registered with | ||||||
| 8 | an agency of this State, shall be the same document as the | ||||||
| 9 | Uniform Invoice referred to in Section 5-402 of the Illinois | ||||||
| 10 | Vehicle Code and must show the name and address of the seller; | ||||||
| 11 | the name and address of the purchaser; the amount of the | ||||||
| 12 | selling price including the amount allowed by the retailer for | ||||||
| 13 | traded-in property, if any; the amount allowed by the retailer | ||||||
| 14 | for the traded-in tangible personal property, if any, to the | ||||||
| 15 | extent to which Section 2 of this Act allows an exemption for | ||||||
| 16 | the value of traded-in property; the balance payable after | ||||||
| 17 | deducting such trade-in allowance from the total selling | ||||||
| 18 | price; the amount of tax due from the retailer with respect to | ||||||
| 19 | such transaction; the amount of tax collected from the | ||||||
| 20 | purchaser by the retailer on such transaction (or satisfactory | ||||||
| 21 | evidence that such tax is not due in that particular instance, | ||||||
| 22 | if that is claimed to be the fact); the place and date of the | ||||||
| 23 | sale; a sufficient identification of the property sold; such | ||||||
| 24 | other information as is required in Section 5-402 of the | ||||||
| 25 | Illinois Vehicle Code, and such other information as the | ||||||
| 26 | Department may reasonably require. | ||||||
| |||||||
| |||||||
| 1 | The transaction reporting return in the case of watercraft | ||||||
| 2 | and aircraft must show the name and address of the seller; the | ||||||
| 3 | name and address of the purchaser; the amount of the selling | ||||||
| 4 | price including the amount allowed by the retailer for | ||||||
| 5 | traded-in property, if any; the amount allowed by the retailer | ||||||
| 6 | for the traded-in tangible personal property, if any, to the | ||||||
| 7 | extent to which Section 2 of this Act allows an exemption for | ||||||
| 8 | the value of traded-in property; the balance payable after | ||||||
| 9 | deducting such trade-in allowance from the total selling | ||||||
| 10 | price; the amount of tax due from the retailer with respect to | ||||||
| 11 | such transaction; the amount of tax collected from the | ||||||
| 12 | purchaser by the retailer on such transaction (or satisfactory | ||||||
| 13 | evidence that such tax is not due in that particular instance, | ||||||
| 14 | if that is claimed to be the fact); the place and date of the | ||||||
| 15 | sale, a sufficient identification of the property sold, and | ||||||
| 16 | such other information as the Department may reasonably | ||||||
| 17 | require. | ||||||
| 18 | Such transaction reporting return shall be filed not later | ||||||
| 19 | than 20 days after the date of delivery of the item that is | ||||||
| 20 | being sold, but may be filed by the retailer at any time sooner | ||||||
| 21 | than that if he chooses to do so. The transaction reporting | ||||||
| 22 | return and tax remittance or proof of exemption from the tax | ||||||
| 23 | that is imposed by this Act may be transmitted to the | ||||||
| 24 | Department by way of the State agency with which, or State | ||||||
| 25 | officer with whom, the tangible personal property must be | ||||||
| 26 | titled or registered (if titling or registration is required) | ||||||
| |||||||
| |||||||
| 1 | if the Department and such agency or State officer determine | ||||||
| 2 | that this procedure will expedite the processing of | ||||||
| 3 | applications for title or registration. | ||||||
| 4 | With each such transaction reporting return, the retailer | ||||||
| 5 | shall remit the proper amount of tax due (or shall submit | ||||||
| 6 | satisfactory evidence that the sale is not taxable if that is | ||||||
| 7 | the case), to the Department or its agents, whereupon the | ||||||
| 8 | Department shall issue, in the purchaser's name, a tax receipt | ||||||
| 9 | (or a certificate of exemption if the Department is satisfied | ||||||
| 10 | that the particular sale is tax exempt) which such purchaser | ||||||
| 11 | may submit to the agency with which, or State officer with | ||||||
| 12 | whom, he must title or register the tangible personal property | ||||||
| 13 | that is involved (if titling or registration is required) in | ||||||
| 14 | support of such purchaser's application for an Illinois | ||||||
| 15 | certificate or other evidence of title or registration to such | ||||||
| 16 | tangible personal property. | ||||||
| 17 | No retailer's failure or refusal to remit tax under this | ||||||
| 18 | Act precludes a user, who has paid the proper tax to the | ||||||
| 19 | retailer, from obtaining his certificate of title or other | ||||||
| 20 | evidence of title or registration (if titling or registration | ||||||
| 21 | is required) upon satisfying the Department that such user has | ||||||
| 22 | paid the proper tax (if tax is due) to the retailer. The | ||||||
| 23 | Department shall adopt appropriate rules to carry out the | ||||||
| 24 | mandate of this paragraph. | ||||||
| 25 | If the user who would otherwise pay tax to the retailer | ||||||
| 26 | wants the transaction reporting return filed and the payment | ||||||
| |||||||
| |||||||
| 1 | of tax or proof of exemption made to the Department before the | ||||||
| 2 | retailer is willing to take these actions and such user has not | ||||||
| 3 | paid the tax to the retailer, such user may certify to the fact | ||||||
| 4 | of such delay by the retailer, and may (upon the Department | ||||||
| 5 | being satisfied of the truth of such certification) transmit | ||||||
| 6 | the information required by the transaction reporting return | ||||||
| 7 | and the remittance for tax or proof of exemption directly to | ||||||
| 8 | the Department and obtain his tax receipt or exemption | ||||||
| 9 | determination, in which event the transaction reporting return | ||||||
| 10 | and tax remittance (if a tax payment was required) shall be | ||||||
| 11 | credited by the Department to the proper retailer's account | ||||||
| 12 | with the Department, but without the vendor's 2.1% or 1.75% | ||||||
| 13 | discount provided for in this Section being allowed. When the | ||||||
| 14 | user pays the tax directly to the Department, he shall pay the | ||||||
| 15 | tax in the same amount and in the same form in which it would | ||||||
| 16 | be remitted if the tax had been remitted to the Department by | ||||||
| 17 | the retailer. | ||||||
| 18 | Where a retailer collects the tax with respect to the | ||||||
| 19 | selling price of tangible personal property which he sells and | ||||||
| 20 | the purchaser thereafter returns such tangible personal | ||||||
| 21 | property and the retailer refunds the selling price thereof to | ||||||
| 22 | the purchaser, such retailer shall also refund, to the | ||||||
| 23 | purchaser, the tax so collected from the purchaser. When | ||||||
| 24 | filing his return for the period in which he refunds such tax | ||||||
| 25 | to the purchaser, the retailer may deduct the amount of the tax | ||||||
| 26 | so refunded by him to the purchaser from any other use tax | ||||||
| |||||||
| |||||||
| 1 | which such retailer may be required to pay or remit to the | ||||||
| 2 | Department, as shown by such return, if the amount of the tax | ||||||
| 3 | to be deducted was previously remitted to the Department by | ||||||
| 4 | such retailer. If the retailer has not previously remitted the | ||||||
| 5 | amount of such tax to the Department, he is entitled to no | ||||||
| 6 | deduction under this Act upon refunding such tax to the | ||||||
| 7 | purchaser. | ||||||
| 8 | Any retailer filing a return under this Section shall also | ||||||
| 9 | include (for the purpose of paying tax thereon) the total tax | ||||||
| 10 | covered by such return upon the selling price of tangible | ||||||
| 11 | personal property purchased by him at retail from a retailer, | ||||||
| 12 | but as to which the tax imposed by this Act was not collected | ||||||
| 13 | from the retailer filing such return, and such retailer shall | ||||||
| 14 | remit the amount of such tax to the Department when filing such | ||||||
| 15 | return. | ||||||
| 16 | If experience indicates such action to be practicable, the | ||||||
| 17 | Department may prescribe and furnish a combination or joint | ||||||
| 18 | return which will enable retailers, who are required to file | ||||||
| 19 | returns hereunder and also under the Retailers' Occupation Tax | ||||||
| 20 | Act, to furnish all the return information required by both | ||||||
| 21 | Acts on the one form. | ||||||
| 22 | Where the retailer has more than one business registered | ||||||
| 23 | with the Department under separate registration under this | ||||||
| 24 | Act, such retailer may not file each return that is due as a | ||||||
| 25 | single return covering all such registered businesses, but | ||||||
| 26 | shall file separate returns for each such registered business. | ||||||
| |||||||
| |||||||
| 1 | Beginning January 1, 1990, each month the Department shall | ||||||
| 2 | pay into the State and Local Sales Tax Reform Fund, a special | ||||||
| 3 | fund in the State Treasury which is hereby created, the net | ||||||
| 4 | revenue realized for the preceding month from the 1% tax | ||||||
| 5 | imposed under this Act. | ||||||
| 6 | Beginning January 1, 1990, each month the Department shall | ||||||
| 7 | pay into the County and Mass Transit District Fund 4% of the | ||||||
| 8 | net revenue realized for the preceding month from the 6.25% | ||||||
| 9 | general rate on the selling price of tangible personal | ||||||
| 10 | property which is purchased outside Illinois at retail from a | ||||||
| 11 | retailer and which is titled or registered by an agency of this | ||||||
| 12 | State's government. | ||||||
| 13 | Beginning January 1, 1990, each month the Department shall | ||||||
| 14 | pay into the State and Local Sales Tax Reform Fund, a special | ||||||
| 15 | fund in the State Treasury, 20% of the net revenue realized for | ||||||
| 16 | the preceding month from the 6.25% general rate on the selling | ||||||
| 17 | price of tangible personal property, other than (i) tangible | ||||||
| 18 | personal property which is purchased outside Illinois at | ||||||
| 19 | retail from a retailer and which is titled or registered by an | ||||||
| 20 | agency of this State's government and (ii) aviation fuel sold | ||||||
| 21 | on or after December 1, 2019. This exception for aviation fuel | ||||||
| 22 | only applies for so long as the revenue use requirements of 49 | ||||||
| 23 | U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State. | ||||||
| 24 | For aviation fuel sold on or after December 1, 2019, each | ||||||
| 25 | month the Department shall pay into the State Aviation Program | ||||||
| 26 | Fund 20% of the net revenue realized for the preceding month | ||||||
| |||||||
| |||||||
| 1 | from the 6.25% general rate on the selling price of aviation | ||||||
| 2 | fuel, less an amount estimated by the Department to be | ||||||
| 3 | required for refunds of the 20% portion of the tax on aviation | ||||||
| 4 | fuel under this Act, which amount shall be deposited into the | ||||||
| 5 | Aviation Fuel Sales Tax Refund Fund. The Department shall only | ||||||
| 6 | pay moneys into the State Aviation Program Fund and the | ||||||
| 7 | Aviation Fuels Sales Tax Refund Fund under this Act for so long | ||||||
| 8 | as the revenue use requirements of 49 U.S.C. 47107(b) and 49 | ||||||
| 9 | U.S.C. 47133 are binding on the State. | ||||||
| 10 | Beginning August 1, 2000, each month the Department shall | ||||||
| 11 | pay into the State and Local Sales Tax Reform Fund 100% of the | ||||||
| 12 | net revenue realized for the preceding month from the 1.25% | ||||||
| 13 | rate on the selling price of motor fuel and gasohol. If, in any | ||||||
| 14 | month, the tax on sales tax holiday items, as defined in | ||||||
| 15 | Section 3-6, is imposed at the rate of 1.25%, then the | ||||||
| 16 | Department shall pay 100% of the net revenue realized for that | ||||||
| 17 | month from the 1.25% rate on the selling price of sales tax | ||||||
| 18 | holiday items into the State and Local Sales Tax Reform Fund. | ||||||
| 19 | Beginning January 1, 1990, each month the Department shall | ||||||
| 20 | pay into the Local Government Tax Fund 16% of the net revenue | ||||||
| 21 | realized for the preceding month from the 6.25% general rate | ||||||
| 22 | on the selling price of tangible personal property which is | ||||||
| 23 | purchased outside Illinois at retail from a retailer and which | ||||||
| 24 | is titled or registered by an agency of this State's | ||||||
| 25 | government. | ||||||
| 26 | Beginning October 1, 2009, each month the Department shall | ||||||
| |||||||
| |||||||
| 1 | pay into the Capital Projects Fund an amount that is equal to | ||||||
| 2 | an amount estimated by the Department to represent 80% of the | ||||||
| 3 | net revenue realized for the preceding month from the sale of | ||||||
| 4 | candy, grooming and hygiene products, and soft drinks that had | ||||||
| 5 | been taxed at a rate of 1% prior to September 1, 2009 but that | ||||||
| 6 | are now taxed at 6.25%. | ||||||
| 7 | Beginning July 1, 2011, each month the Department shall | ||||||
| 8 | pay into the Clean Air Act Permit Fund 80% of the net revenue | ||||||
| 9 | realized for the preceding month from the 6.25% general rate | ||||||
| 10 | on the selling price of sorbents used in Illinois in the | ||||||
| 11 | process of sorbent injection as used to comply with the | ||||||
| 12 | Environmental Protection Act or the federal Clean Air Act, but | ||||||
| 13 | the total payment into the Clean Air Act Permit Fund under this | ||||||
| 14 | Act and the Retailers' Occupation Tax Act shall not exceed | ||||||
| 15 | $2,000,000 in any fiscal year. | ||||||
| 16 | Beginning July 1, 2013, each month the Department shall | ||||||
| 17 | pay into the Underground Storage Tank Fund from the proceeds | ||||||
| 18 | collected under this Act, the Service Use Tax Act, the Service | ||||||
| 19 | Occupation Tax Act, and the Retailers' Occupation Tax Act an | ||||||
| 20 | amount equal to the average monthly deficit in the Underground | ||||||
| 21 | Storage Tank Fund during the prior year, as certified annually | ||||||
| 22 | by the Illinois Environmental Protection Agency, but the total | ||||||
| 23 | payment into the Underground Storage Tank Fund under this Act, | ||||||
| 24 | the Service Use Tax Act, the Service Occupation Tax Act, and | ||||||
| 25 | the Retailers' Occupation Tax Act shall not exceed $18,000,000 | ||||||
| 26 | in any State fiscal year. As used in this paragraph, the | ||||||
| |||||||
| |||||||
| 1 | "average monthly deficit" shall be equal to the difference | ||||||
| 2 | between the average monthly claims for payment by the fund and | ||||||
| 3 | the average monthly revenues deposited into the fund, | ||||||
| 4 | excluding payments made pursuant to this paragraph. | ||||||
| 5 | Beginning July 1, 2015, of the remainder of the moneys | ||||||
| 6 | received by the Department under this Act, the Service Use Tax | ||||||
| 7 | Act, the Service Occupation Tax Act, and the Retailers' | ||||||
| 8 | Occupation Tax Act, each month the Department shall deposit | ||||||
| 9 | $500,000 into the State Crime Laboratory Fund. | ||||||
| 10 | Of the remainder of the moneys received by the Department | ||||||
| 11 | pursuant to this Act, (a) 1.75% thereof shall be paid into the | ||||||
| 12 | Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on | ||||||
| 13 | and after July 1, 1989, 3.8% thereof shall be paid into the | ||||||
| 14 | Build Illinois Fund; provided, however, that if in any fiscal | ||||||
| 15 | year the sum of (1) the aggregate of 2.2% or 3.8%, as the case | ||||||
| 16 | may be, of the moneys received by the Department and required | ||||||
| 17 | to be paid into the Build Illinois Fund pursuant to Section 3 | ||||||
| 18 | of the Retailers' Occupation Tax Act, Section 9 of the Use Tax | ||||||
| 19 | Act, Section 9 of the Service Use Tax Act, and Section 9 of the | ||||||
| 20 | Service Occupation Tax Act, such Acts being hereinafter called | ||||||
| 21 | the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case | ||||||
| 22 | may be, of moneys being hereinafter called the "Tax Act | ||||||
| 23 | Amount", and (2) the amount transferred to the Build Illinois | ||||||
| 24 | Fund from the State and Local Sales Tax Reform Fund shall be | ||||||
| 25 | less than the Annual Specified Amount (as defined in Section 3 | ||||||
| 26 | of the Retailers' Occupation Tax Act), an amount equal to the | ||||||
| |||||||
| |||||||
| 1 | difference shall be immediately paid into the Build Illinois | ||||||
| 2 | Fund from other moneys received by the Department pursuant to | ||||||
| 3 | the Tax Acts; and further provided, that if on the last | ||||||
| 4 | business day of any month the sum of (1) the Tax Act Amount | ||||||
| 5 | required to be deposited into the Build Illinois Bond Account | ||||||
| 6 | in the Build Illinois Fund during such month and (2) the amount | ||||||
| 7 | transferred during such month to the Build Illinois Fund from | ||||||
| 8 | the State and Local Sales Tax Reform Fund shall have been less | ||||||
| 9 | than 1/12 of the Annual Specified Amount, an amount equal to | ||||||
| 10 | the difference shall be immediately paid into the Build | ||||||
| 11 | Illinois Fund from other moneys received by the Department | ||||||
| 12 | pursuant to the Tax Acts; and, further provided, that in no | ||||||
| 13 | event shall the payments required under the preceding proviso | ||||||
| 14 | result in aggregate payments into the Build Illinois Fund | ||||||
| 15 | pursuant to this clause (b) for any fiscal year in excess of | ||||||
| 16 | the greater of (i) the Tax Act Amount or (ii) the Annual | ||||||
| 17 | Specified Amount for such fiscal year; and, further provided, | ||||||
| 18 | that the amounts payable into the Build Illinois Fund under | ||||||
| 19 | this clause (b) shall be payable only until such time as the | ||||||
| 20 | aggregate amount on deposit under each trust indenture | ||||||
| 21 | securing Bonds issued and outstanding pursuant to the Build | ||||||
| 22 | Illinois Bond Act is sufficient, taking into account any | ||||||
| 23 | future investment income, to fully provide, in accordance with | ||||||
| 24 | such indenture, for the defeasance of or the payment of the | ||||||
| 25 | principal of, premium, if any, and interest on the Bonds | ||||||
| 26 | secured by such indenture and on any Bonds expected to be | ||||||
| |||||||
| |||||||
| 1 | issued thereafter and all fees and costs payable with respect | ||||||
| 2 | thereto, all as certified by the Director of the Bureau of the | ||||||
| 3 | Budget (now Governor's Office of Management and Budget). If on | ||||||
| 4 | the last business day of any month in which Bonds are | ||||||
| 5 | outstanding pursuant to the Build Illinois Bond Act, the | ||||||
| 6 | aggregate of the moneys deposited in the Build Illinois Bond | ||||||
| 7 | Account in the Build Illinois Fund in such month shall be less | ||||||
| 8 | than the amount required to be transferred in such month from | ||||||
| 9 | the Build Illinois Bond Account to the Build Illinois Bond | ||||||
| 10 | Retirement and Interest Fund pursuant to Section 13 of the | ||||||
| 11 | Build Illinois Bond Act, an amount equal to such deficiency | ||||||
| 12 | shall be immediately paid from other moneys received by the | ||||||
| 13 | Department pursuant to the Tax Acts to the Build Illinois | ||||||
| 14 | Fund; provided, however, that any amounts paid to the Build | ||||||
| 15 | Illinois Fund in any fiscal year pursuant to this sentence | ||||||
| 16 | shall be deemed to constitute payments pursuant to clause (b) | ||||||
| 17 | of the preceding sentence and shall reduce the amount | ||||||
| 18 | otherwise payable for such fiscal year pursuant to clause (b) | ||||||
| 19 | of the preceding sentence. The moneys received by the | ||||||
| 20 | Department pursuant to this Act and required to be deposited | ||||||
| 21 | into the Build Illinois Fund are subject to the pledge, claim | ||||||
| 22 | and charge set forth in Section 12 of the Build Illinois Bond | ||||||
| 23 | Act. | ||||||
| 24 | Subject to payment of amounts into the Build Illinois Fund | ||||||
| 25 | as provided in the preceding paragraph or in any amendment | ||||||
| 26 | thereto hereafter enacted, the following specified monthly | ||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1 | installment of the amount requested in the certificate of the | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2 | Chairman of the Metropolitan Pier and Exposition Authority | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3 | provided under Section 8.25f of the State Finance Act, but not | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4 | in excess of the sums designated as "Total Deposit", shall be | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 5 | deposited in the aggregate from collections under Section 9 of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 6 | the Use Tax Act, Section 9 of the Service Use Tax Act, Section | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 7 | 9 of the Service Occupation Tax Act, and Section 3 of the | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 8 | Retailers' Occupation Tax Act into the McCormick Place | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 9 | Expansion Project Fund in the specified fiscal years. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| 11 | Beginning July 20, 1993 and in each month of each fiscal | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 12 | year thereafter, one-eighth of the amount requested in the | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 13 | certificate of the Chairman of the Metropolitan Pier and | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 14 | Exposition Authority for that fiscal year, less the amount | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 15 | deposited into the McCormick Place Expansion Project Fund by | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 16 | the State Treasurer in the respective month under subsection | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 17 | (g) of Section 13 of the Metropolitan Pier and Exposition | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 18 | Authority Act, plus cumulative deficiencies in the deposits | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 19 | required under this Section for previous months and years, | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 20 | shall be deposited into the McCormick Place Expansion Project | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 21 | Fund, until the full amount requested for the fiscal year, but | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 22 | not in excess of the amount specified above as "Total | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 23 | Deposit", has been deposited. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 24 | Subject to payment of amounts into the Capital Projects | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 25 | Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 26 | and the McCormick Place Expansion Project Fund pursuant to the | |||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||
| |||||||
| 1 | preceding paragraphs or in any amendments thereto hereafter | ||||||
| 2 | enacted, for aviation fuel sold on or after December 1, 2019, | ||||||
| 3 | the Department shall each month deposit into the Aviation Fuel | ||||||
| 4 | Sales Tax Refund Fund an amount estimated by the Department to | ||||||
| 5 | be required for refunds of the 80% portion of the tax on | ||||||
| 6 | aviation fuel under this Act. The Department shall only | ||||||
| 7 | deposit moneys into the Aviation Fuel Sales Tax Refund Fund | ||||||
| 8 | under this paragraph for so long as the revenue use | ||||||
| 9 | requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are | ||||||
| 10 | binding on the State. | ||||||
| 11 | Subject to payment of amounts into the Build Illinois Fund | ||||||
| 12 | and the McCormick Place Expansion Project Fund pursuant to the | ||||||
| 13 | preceding paragraphs or in any amendments thereto hereafter | ||||||
| 14 | enacted, beginning July 1, 1993 and ending on September 30, | ||||||
| 15 | 2013, the Department shall each month pay into the Illinois | ||||||
| 16 | Tax Increment Fund 0.27% of 80% of the net revenue realized for | ||||||
| 17 | the preceding month from the 6.25% general rate on the selling | ||||||
| 18 | price of tangible personal property. | ||||||
| 19 | Subject to payment of amounts into the Build Illinois | ||||||
| 20 | Fund, the McCormick Place Expansion Project Fund, the Illinois | ||||||
| 21 | Tax Increment Fund, and the Energy Infrastructure Fund | ||||||
| 22 | pursuant to the preceding paragraphs or in any amendments to | ||||||
| 23 | this Section hereafter enacted, beginning on the first day of | ||||||
| 24 | the first calendar month to occur on or after August 26, 2014 | ||||||
| 25 | (the effective date of Public Act 98-1098), each month, from | ||||||
| 26 | the collections made under Section 9 of the Use Tax Act, | ||||||
| |||||||
| |||||||
| 1 | Section 9 of the Service Use Tax Act, Section 9 of the Service | ||||||
| 2 | Occupation Tax Act, and Section 3 of the Retailers' Occupation | ||||||
| 3 | Tax Act, the Department shall pay into the Tax Compliance and | ||||||
| 4 | Administration Fund, to be used, subject to appropriation, to | ||||||
| 5 | fund additional auditors and compliance personnel at the | ||||||
| 6 | Department of Revenue, an amount equal to 1/12 of 5% of 80% of | ||||||
| 7 | the cash receipts collected during the preceding fiscal year | ||||||
| 8 | by the Audit Bureau of the Department under the Use Tax Act, | ||||||
| 9 | the Service Use Tax Act, the Service Occupation Tax Act, the | ||||||
| 10 | Retailers' Occupation Tax Act, and associated local occupation | ||||||
| 11 | and use taxes administered by the Department. | ||||||
| 12 | Subject to payments of amounts into the Build Illinois | ||||||
| 13 | Fund, the McCormick Place Expansion Project Fund, the Illinois | ||||||
| 14 | Tax Increment Fund, and the Tax Compliance and Administration | ||||||
| 15 | Fund as provided in this Section, beginning on July 1, 2018 the | ||||||
| 16 | Department shall pay each month into the Downstate Public | ||||||
| 17 | Transportation Fund the moneys required to be so paid under | ||||||
| 18 | Section 2-3 of the Downstate Public Transportation Act. | ||||||
| 19 | Subject to successful execution and delivery of a | ||||||
| 20 | public-private agreement between the public agency and private | ||||||
| 21 | entity and completion of the civic build, beginning on July 1, | ||||||
| 22 | 2023, of the remainder of the moneys received by the | ||||||
| 23 | Department under the Use Tax Act, the Service Use Tax Act, the | ||||||
| 24 | Service Occupation Tax Act, and this Act, the Department shall | ||||||
| 25 | deposit the following specified deposits in the aggregate from | ||||||
| 26 | collections under the Use Tax Act, the Service Use Tax Act, the | ||||||
| |||||||
| |||||||
| 1 | Service Occupation Tax Act, and the Retailers' Occupation Tax | ||||||
| 2 | Act, as required under Section 8.25g of the State Finance Act | ||||||
| 3 | for distribution consistent with the Public-Private | ||||||
| 4 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
| 5 | The moneys received by the Department pursuant to this Act and | ||||||
| 6 | required to be deposited into the Civic and Transit | ||||||
| 7 | Infrastructure Fund are subject to the pledge, claim, and | ||||||
| 8 | charge set forth in Section 25-55 of the Public-Private | ||||||
| 9 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
| 10 | As used in this paragraph, "civic build", "private entity", | ||||||
| 11 | "public-private agreement", and "public agency" have the | ||||||
| 12 | meanings provided in Section 25-10 of the Public-Private | ||||||
| 13 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
| 14 | Fiscal Year............................Total Deposit | ||||||
| 15 | 2024....................................$200,000,000 | ||||||
| 16 | 2025....................................$206,000,000 | ||||||
| 17 | 2026....................................$212,200,000 | ||||||
| 18 | 2027....................................$218,500,000 | ||||||
| 19 | 2028....................................$225,100,000 | ||||||
| 20 | 2029....................................$288,700,000 | ||||||
| 21 | 2030....................................$298,900,000 | ||||||
| 22 | 2031....................................$309,300,000 | ||||||
| 23 | 2032....................................$320,100,000 | ||||||
| 24 | 2033....................................$331,200,000 | ||||||
| 25 | 2034....................................$341,200,000 | ||||||
| 26 | 2035....................................$351,400,000 | ||||||
| |||||||
| |||||||
| 1 | 2036....................................$361,900,000 | ||||||
| 2 | 2037....................................$372,800,000 | ||||||
| 3 | 2038....................................$384,000,000 | ||||||
| 4 | 2039....................................$395,500,000 | ||||||
| 5 | 2040....................................$407,400,000 | ||||||
| 6 | 2041....................................$419,600,000 | ||||||
| 7 | 2042....................................$432,200,000 | ||||||
| 8 | 2043....................................$445,100,000 | ||||||
| 9 | Beginning July 1, 2021 and until July 1, 2022, subject to | ||||||
| 10 | the payment of amounts into the State and Local Sales Tax | ||||||
| 11 | Reform Fund, the Build Illinois Fund, the McCormick Place | ||||||
| 12 | Expansion Project Fund, the Illinois Tax Increment Fund, and | ||||||
| 13 | the Tax Compliance and Administration Fund as provided in this | ||||||
| 14 | Section, the Department shall pay each month into the Road | ||||||
| 15 | Fund the amount estimated to represent 16% of the net revenue | ||||||
| 16 | realized from the taxes imposed on motor fuel and gasohol. | ||||||
| 17 | Beginning July 1, 2022 and until July 1, 2023, subject to the | ||||||
| 18 | payment of amounts into the State and Local Sales Tax Reform | ||||||
| 19 | Fund, the Build Illinois Fund, the McCormick Place Expansion | ||||||
| 20 | Project Fund, the Illinois Tax Increment Fund, and the Tax | ||||||
| 21 | Compliance and Administration Fund as provided in this | ||||||
| 22 | Section, the Department shall pay each month into the Road | ||||||
| 23 | Fund the amount estimated to represent 32% of the net revenue | ||||||
| 24 | realized from the taxes imposed on motor fuel and gasohol. | ||||||
| 25 | Beginning July 1, 2023 and until July 1, 2024, subject to the | ||||||
| 26 | payment of amounts into the State and Local Sales Tax Reform | ||||||
| |||||||
| |||||||
| 1 | Fund, the Build Illinois Fund, the McCormick Place Expansion | ||||||
| 2 | Project Fund, the Illinois Tax Increment Fund, and the Tax | ||||||
| 3 | Compliance and Administration Fund as provided in this | ||||||
| 4 | Section, the Department shall pay each month into the Road | ||||||
| 5 | Fund the amount estimated to represent 48% of the net revenue | ||||||
| 6 | realized from the taxes imposed on motor fuel and gasohol. | ||||||
| 7 | Beginning July 1, 2024 and until July 1, 2025, subject to the | ||||||
| 8 | payment of amounts into the State and Local Sales Tax Reform | ||||||
| 9 | Fund, the Build Illinois Fund, the McCormick Place Expansion | ||||||
| 10 | Project Fund, the Illinois Tax Increment Fund, and the Tax | ||||||
| 11 | Compliance and Administration Fund as provided in this | ||||||
| 12 | Section, the Department shall pay each month into the Road | ||||||
| 13 | Fund the amount estimated to represent 64% of the net revenue | ||||||
| 14 | realized from the taxes imposed on motor fuel and gasohol. | ||||||
| 15 | Beginning on July 1, 2025, subject to the payment of amounts | ||||||
| 16 | into the State and Local Sales Tax Reform Fund, the Build | ||||||
| 17 | Illinois Fund, the McCormick Place Expansion Project Fund, the | ||||||
| 18 | Illinois Tax Increment Fund, and the Tax Compliance and | ||||||
| 19 | Administration Fund as provided in this Section, the | ||||||
| 20 | Department shall pay each month into the Road Fund the amount | ||||||
| 21 | estimated to represent 80% of the net revenue realized from | ||||||
| 22 | the taxes imposed on motor fuel and gasohol. As used in this | ||||||
| 23 | paragraph "motor fuel" has the meaning given to that term in | ||||||
| 24 | Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the | ||||||
| 25 | meaning given to that term in Section 3-40 of this Act. | ||||||
| 26 | Of the remainder of the moneys received by the Department | ||||||
| |||||||
| |||||||
| 1 | pursuant to this Act, 75% thereof shall be paid into the State | ||||||
| 2 | Treasury and 25% shall be reserved in a special account and | ||||||
| 3 | used only for the transfer to the Common School Fund as part of | ||||||
| 4 | the monthly transfer from the General Revenue Fund in | ||||||
| 5 | accordance with Section 8a of the State Finance Act. | ||||||
| 6 | As soon as possible after the first day of each month, upon | ||||||
| 7 | certification of the Department of Revenue, the Comptroller | ||||||
| 8 | shall order transferred and the Treasurer shall transfer from | ||||||
| 9 | the General Revenue Fund to the Motor Fuel Tax Fund an amount | ||||||
| 10 | equal to 1.7% of 80% of the net revenue realized under this Act | ||||||
| 11 | for the second preceding month. Beginning April 1, 2000, this | ||||||
| 12 | transfer is no longer required and shall not be made. | ||||||
| 13 | Net revenue realized for a month shall be the revenue | ||||||
| 14 | collected by the State pursuant to this Act, less the amount | ||||||
| 15 | paid out during that month as refunds to taxpayers for | ||||||
| 16 | overpayment of liability. | ||||||
| 17 | For greater simplicity of administration, manufacturers, | ||||||
| 18 | importers and wholesalers whose products are sold at retail in | ||||||
| 19 | Illinois by numerous retailers, and who wish to do so, may | ||||||
| 20 | assume the responsibility for accounting and paying to the | ||||||
| 21 | Department all tax accruing under this Act with respect to | ||||||
| 22 | such sales, if the retailers who are affected do not make | ||||||
| 23 | written objection to the Department to this arrangement. | ||||||
| 24 | (Source: P.A. 102-700, Article 60, Section 60-15, eff. | ||||||
| 25 | 4-19-22; 102-700, Article 65, Section 65-5, eff. 4-19-22; | ||||||
| 26 | 102-1019, eff. 1-1-23; 103-154, eff. 6-30-23; 103-363, eff. | ||||||
| |||||||
| |||||||
| 1 | 7-28-23.)
| ||||||
| 2 | Section 110-10. The Service Use Tax Act is amended by | ||||||
| 3 | changing Section 9 as follows:
| ||||||
| 4 | (35 ILCS 110/9) (from Ch. 120, par. 439.39) | ||||||
| 5 | Sec. 9. Each serviceman required or authorized to collect | ||||||
| 6 | the tax herein imposed shall pay to the Department the amount | ||||||
| 7 | of such tax (except as otherwise provided) at the time when he | ||||||
| 8 | is required to file his return for the period during which such | ||||||
| 9 | tax was collected, less a discount of 2.1% prior to January 1, | ||||||
| 10 | 1990 and 1.75% on and after January 1, 1990, or $5 per calendar | ||||||
| 11 | year, whichever is greater, which is allowed to reimburse the | ||||||
| 12 | serviceman for expenses incurred in collecting the tax, | ||||||
| 13 | keeping records, preparing and filing returns, remitting the | ||||||
| 14 | tax and supplying data to the Department on request. Beginning | ||||||
| 15 | with returns due on or after January 1, 2025, the vendor's | ||||||
| 16 | discount allowed in this Section, the Retailers' Occupation | ||||||
| 17 | Tax Act, the Service Occupation Tax Act, and the Use Tax Act, | ||||||
| 18 | including any local tax administered by the Department and | ||||||
| 19 | reported on the same return, shall not exceed $1,000 per month | ||||||
| 20 | in the aggregate. When determining the discount allowed under | ||||||
| 21 | this Section, servicemen shall include the amount of tax that | ||||||
| 22 | would have been due at the 1% rate but for the 0% rate imposed | ||||||
| 23 | under this amendatory Act of the 102nd General Assembly. The | ||||||
| 24 | discount under this Section is not allowed for the 1.25% | ||||||
| |||||||
| |||||||
| 1 | portion of taxes paid on aviation fuel that is subject to the | ||||||
| 2 | revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. | ||||||
| 3 | 47133. The discount allowed under this Section is allowed only | ||||||
| 4 | for returns that are filed in the manner required by this Act. | ||||||
| 5 | The Department may disallow the discount for servicemen whose | ||||||
| 6 | certificate of registration is revoked at the time the return | ||||||
| 7 | is filed, but only if the Department's decision to revoke the | ||||||
| 8 | certificate of registration has become final. A serviceman | ||||||
| 9 | need not remit that part of any tax collected by him to the | ||||||
| 10 | extent that he is required to pay and does pay the tax imposed | ||||||
| 11 | by the Service Occupation Tax Act with respect to his sale of | ||||||
| 12 | service involving the incidental transfer by him of the same | ||||||
| 13 | property. | ||||||
| 14 | Except as provided hereinafter in this Section, on or | ||||||
| 15 | before the twentieth day of each calendar month, such | ||||||
| 16 | serviceman shall file a return for the preceding calendar | ||||||
| 17 | month in accordance with reasonable Rules and Regulations to | ||||||
| 18 | be promulgated by the Department. Such return shall be filed | ||||||
| 19 | on a form prescribed by the Department and shall contain such | ||||||
| 20 | information as the Department may reasonably require. The | ||||||
| 21 | return shall include the gross receipts which were received | ||||||
| 22 | during the preceding calendar month or quarter on the | ||||||
| 23 | following items upon which tax would have been due but for the | ||||||
| 24 | 0% rate imposed under this amendatory Act of the 102nd General | ||||||
| 25 | Assembly: (i) food for human consumption that is to be | ||||||
| 26 | consumed off the premises where it is sold (other than | ||||||
| |||||||
| |||||||
| 1 | alcoholic beverages, food consisting of or infused with adult | ||||||
| 2 | use cannabis, soft drinks, and food that has been prepared for | ||||||
| 3 | immediate consumption); and (ii) food prepared for immediate | ||||||
| 4 | consumption and transferred incident to a sale of service | ||||||
| 5 | subject to this Act or the Service Occupation Tax Act by an | ||||||
| 6 | entity licensed under the Hospital Licensing Act, the Nursing | ||||||
| 7 | Home Care Act, the Assisted Living and Shared Housing Act, the | ||||||
| 8 | ID/DD Community Care Act, the MC/DD Act, the Specialized | ||||||
| 9 | Mental Health Rehabilitation Act of 2013, or the Child Care | ||||||
| 10 | Act of 1969, or an entity that holds a permit issued pursuant | ||||||
| 11 | to the Life Care Facilities Act. The return shall also include | ||||||
| 12 | the amount of tax that would have been due on the items listed | ||||||
| 13 | in the previous sentence but for the 0% rate imposed under this | ||||||
| 14 | amendatory Act of the 102nd General Assembly. | ||||||
| 15 | On and after January 1, 2018, with respect to servicemen | ||||||
| 16 | whose annual gross receipts average $20,000 or more, all | ||||||
| 17 | returns required to be filed pursuant to this Act shall be | ||||||
| 18 | filed electronically. Servicemen who demonstrate that they do | ||||||
| 19 | not have access to the Internet or demonstrate hardship in | ||||||
| 20 | filing electronically may petition the Department to waive the | ||||||
| 21 | electronic filing requirement. | ||||||
| 22 | The Department may require returns to be filed on a | ||||||
| 23 | quarterly basis. If so required, a return for each calendar | ||||||
| 24 | quarter shall be filed on or before the twentieth day of the | ||||||
| 25 | calendar month following the end of such calendar quarter. The | ||||||
| 26 | taxpayer shall also file a return with the Department for each | ||||||
| |||||||
| |||||||
| 1 | of the first two months of each calendar quarter, on or before | ||||||
| 2 | the twentieth day of the following calendar month, stating: | ||||||
| 3 | 1. The name of the seller; | ||||||
| 4 | 2. The address of the principal place of business from | ||||||
| 5 | which he engages in business as a serviceman in this | ||||||
| 6 | State; | ||||||
| 7 | 3. The total amount of taxable receipts received by | ||||||
| 8 | him during the preceding calendar month, including | ||||||
| 9 | receipts from charge and time sales, but less all | ||||||
| 10 | deductions allowed by law; | ||||||
| 11 | 4. The amount of credit provided in Section 2d of this | ||||||
| 12 | Act; | ||||||
| 13 | 5. The amount of tax due; | ||||||
| 14 | 5-5. The signature of the taxpayer; and | ||||||
| 15 | 6. Such other reasonable information as the Department | ||||||
| 16 | may require. | ||||||
| 17 | Each serviceman required or authorized to collect the tax | ||||||
| 18 | imposed by this Act on aviation fuel transferred as an | ||||||
| 19 | incident of a sale of service in this State during the | ||||||
| 20 | preceding calendar month shall, instead of reporting and | ||||||
| 21 | paying tax on aviation fuel as otherwise required by this | ||||||
| 22 | Section, report and pay such tax on a separate aviation fuel | ||||||
| 23 | tax return. The requirements related to the return shall be as | ||||||
| 24 | otherwise provided in this Section. Notwithstanding any other | ||||||
| 25 | provisions of this Act to the contrary, servicemen collecting | ||||||
| 26 | tax on aviation fuel shall file all aviation fuel tax returns | ||||||
| |||||||
| |||||||
| 1 | and shall make all aviation fuel tax payments by electronic | ||||||
| 2 | means in the manner and form required by the Department. For | ||||||
| 3 | purposes of this Section, "aviation fuel" means jet fuel and | ||||||
| 4 | aviation gasoline. | ||||||
| 5 | If a taxpayer fails to sign a return within 30 days after | ||||||
| 6 | the proper notice and demand for signature by the Department, | ||||||
| 7 | the return shall be considered valid and any amount shown to be | ||||||
| 8 | due on the return shall be deemed assessed. | ||||||
| 9 | Notwithstanding any other provision of this Act to the | ||||||
| 10 | contrary, servicemen subject to tax on cannabis shall file all | ||||||
| 11 | cannabis tax returns and shall make all cannabis tax payments | ||||||
| 12 | by electronic means in the manner and form required by the | ||||||
| 13 | Department. | ||||||
| 14 | Beginning October 1, 1993, a taxpayer who has an average | ||||||
| 15 | monthly tax liability of $150,000 or more shall make all | ||||||
| 16 | payments required by rules of the Department by electronic | ||||||
| 17 | funds transfer. Beginning October 1, 1994, a taxpayer who has | ||||||
| 18 | an average monthly tax liability of $100,000 or more shall | ||||||
| 19 | make all payments required by rules of the Department by | ||||||
| 20 | electronic funds transfer. Beginning October 1, 1995, a | ||||||
| 21 | taxpayer who has an average monthly tax liability of $50,000 | ||||||
| 22 | or more shall make all payments required by rules of the | ||||||
| 23 | Department by electronic funds transfer. Beginning October 1, | ||||||
| 24 | 2000, a taxpayer who has an annual tax liability of $200,000 or | ||||||
| 25 | more shall make all payments required by rules of the | ||||||
| 26 | Department by electronic funds transfer. The term "annual tax | ||||||
| |||||||
| |||||||
| 1 | liability" shall be the sum of the taxpayer's liabilities | ||||||
| 2 | under this Act, and under all other State and local occupation | ||||||
| 3 | and use tax laws administered by the Department, for the | ||||||
| 4 | immediately preceding calendar year. The term "average monthly | ||||||
| 5 | tax liability" means the sum of the taxpayer's liabilities | ||||||
| 6 | under this Act, and under all other State and local occupation | ||||||
| 7 | and use tax laws administered by the Department, for the | ||||||
| 8 | immediately preceding calendar year divided by 12. Beginning | ||||||
| 9 | on October 1, 2002, a taxpayer who has a tax liability in the | ||||||
| 10 | amount set forth in subsection (b) of Section 2505-210 of the | ||||||
| 11 | Department of Revenue Law shall make all payments required by | ||||||
| 12 | rules of the Department by electronic funds transfer. | ||||||
| 13 | Before August 1 of each year beginning in 1993, the | ||||||
| 14 | Department shall notify all taxpayers required to make | ||||||
| 15 | payments by electronic funds transfer. All taxpayers required | ||||||
| 16 | to make payments by electronic funds transfer shall make those | ||||||
| 17 | payments for a minimum of one year beginning on October 1. | ||||||
| 18 | Any taxpayer not required to make payments by electronic | ||||||
| 19 | funds transfer may make payments by electronic funds transfer | ||||||
| 20 | with the permission of the Department. | ||||||
| 21 | All taxpayers required to make payment by electronic funds | ||||||
| 22 | transfer and any taxpayers authorized to voluntarily make | ||||||
| 23 | payments by electronic funds transfer shall make those | ||||||
| 24 | payments in the manner authorized by the Department. | ||||||
| 25 | The Department shall adopt such rules as are necessary to | ||||||
| 26 | effectuate a program of electronic funds transfer and the | ||||||
| |||||||
| |||||||
| 1 | requirements of this Section. | ||||||
| 2 | If the serviceman is otherwise required to file a monthly | ||||||
| 3 | return and if the serviceman's average monthly tax liability | ||||||
| 4 | to the Department does not exceed $200, the Department may | ||||||
| 5 | authorize his returns to be filed on a quarter annual basis, | ||||||
| 6 | with the return for January, February and March of a given year | ||||||
| 7 | being due by April 20 of such year; with the return for April, | ||||||
| 8 | May and June of a given year being due by July 20 of such year; | ||||||
| 9 | with the return for July, August and September of a given year | ||||||
| 10 | being due by October 20 of such year, and with the return for | ||||||
| 11 | October, November and December of a given year being due by | ||||||
| 12 | January 20 of the following year. | ||||||
| 13 | If the serviceman is otherwise required to file a monthly | ||||||
| 14 | or quarterly return and if the serviceman's average monthly | ||||||
| 15 | tax liability to the Department does not exceed $50, the | ||||||
| 16 | Department may authorize his returns to be filed on an annual | ||||||
| 17 | basis, with the return for a given year being due by January 20 | ||||||
| 18 | of the following year. | ||||||
| 19 | Such quarter annual and annual returns, as to form and | ||||||
| 20 | substance, shall be subject to the same requirements as | ||||||
| 21 | monthly returns. | ||||||
| 22 | Notwithstanding any other provision in this Act concerning | ||||||
| 23 | the time within which a serviceman may file his return, in the | ||||||
| 24 | case of any serviceman who ceases to engage in a kind of | ||||||
| 25 | business which makes him responsible for filing returns under | ||||||
| 26 | this Act, such serviceman shall file a final return under this | ||||||
| |||||||
| |||||||
| 1 | Act with the Department not more than 1 month after | ||||||
| 2 | discontinuing such business. | ||||||
| 3 | Where a serviceman collects the tax with respect to the | ||||||
| 4 | selling price of property which he sells and the purchaser | ||||||
| 5 | thereafter returns such property and the serviceman refunds | ||||||
| 6 | the selling price thereof to the purchaser, such serviceman | ||||||
| 7 | shall also refund, to the purchaser, the tax so collected from | ||||||
| 8 | the purchaser. When filing his return for the period in which | ||||||
| 9 | he refunds such tax to the purchaser, the serviceman may | ||||||
| 10 | deduct the amount of the tax so refunded by him to the | ||||||
| 11 | purchaser from any other Service Use Tax, Service Occupation | ||||||
| 12 | Tax, retailers' occupation tax or use tax which such | ||||||
| 13 | serviceman may be required to pay or remit to the Department, | ||||||
| 14 | as shown by such return, provided that the amount of the tax to | ||||||
| 15 | be deducted shall previously have been remitted to the | ||||||
| 16 | Department by such serviceman. If the serviceman shall not | ||||||
| 17 | previously have remitted the amount of such tax to the | ||||||
| 18 | Department, he shall be entitled to no deduction hereunder | ||||||
| 19 | upon refunding such tax to the purchaser. | ||||||
| 20 | Any serviceman filing a return hereunder shall also | ||||||
| 21 | include the total tax upon the selling price of tangible | ||||||
| 22 | personal property purchased for use by him as an incident to a | ||||||
| 23 | sale of service, and such serviceman shall remit the amount of | ||||||
| 24 | such tax to the Department when filing such return. | ||||||
| 25 | If experience indicates such action to be practicable, the | ||||||
| 26 | Department may prescribe and furnish a combination or joint | ||||||
| |||||||
| |||||||
| 1 | return which will enable servicemen, who are required to file | ||||||
| 2 | returns hereunder and also under the Service Occupation Tax | ||||||
| 3 | Act, to furnish all the return information required by both | ||||||
| 4 | Acts on the one form. | ||||||
| 5 | Where the serviceman has more than one business registered | ||||||
| 6 | with the Department under separate registration hereunder, | ||||||
| 7 | such serviceman shall not file each return that is due as a | ||||||
| 8 | single return covering all such registered businesses, but | ||||||
| 9 | shall file separate returns for each such registered business. | ||||||
| 10 | Beginning January 1, 1990, each month the Department shall | ||||||
| 11 | pay into the State and Local Tax Reform Fund, a special fund in | ||||||
| 12 | the State Treasury, the net revenue realized for the preceding | ||||||
| 13 | month from the 1% tax imposed under this Act. | ||||||
| 14 | Beginning January 1, 1990, each month the Department shall | ||||||
| 15 | pay into the State and Local Sales Tax Reform Fund 20% of the | ||||||
| 16 | net revenue realized for the preceding month from the 6.25% | ||||||
| 17 | general rate on transfers of tangible personal property, other | ||||||
| 18 | than (i) tangible personal property which is purchased outside | ||||||
| 19 | Illinois at retail from a retailer and which is titled or | ||||||
| 20 | registered by an agency of this State's government and (ii) | ||||||
| 21 | aviation fuel sold on or after December 1, 2019. This | ||||||
| 22 | exception for aviation fuel only applies for so long as the | ||||||
| 23 | revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. | ||||||
| 24 | 47133 are binding on the State. | ||||||
| 25 | For aviation fuel sold on or after December 1, 2019, each | ||||||
| 26 | month the Department shall pay into the State Aviation Program | ||||||
| |||||||
| |||||||
| 1 | Fund 20% of the net revenue realized for the preceding month | ||||||
| 2 | from the 6.25% general rate on the selling price of aviation | ||||||
| 3 | fuel, less an amount estimated by the Department to be | ||||||
| 4 | required for refunds of the 20% portion of the tax on aviation | ||||||
| 5 | fuel under this Act, which amount shall be deposited into the | ||||||
| 6 | Aviation Fuel Sales Tax Refund Fund. The Department shall only | ||||||
| 7 | pay moneys into the State Aviation Program Fund and the | ||||||
| 8 | Aviation Fuel Sales Tax Refund Fund under this Act for so long | ||||||
| 9 | as the revenue use requirements of 49 U.S.C. 47107(b) and 49 | ||||||
| 10 | U.S.C. 47133 are binding on the State. | ||||||
| 11 | Beginning August 1, 2000, each month the Department shall | ||||||
| 12 | pay into the State and Local Sales Tax Reform Fund 100% of the | ||||||
| 13 | net revenue realized for the preceding month from the 1.25% | ||||||
| 14 | rate on the selling price of motor fuel and gasohol. | ||||||
| 15 | Beginning October 1, 2009, each month the Department shall | ||||||
| 16 | pay into the Capital Projects Fund an amount that is equal to | ||||||
| 17 | an amount estimated by the Department to represent 80% of the | ||||||
| 18 | net revenue realized for the preceding month from the sale of | ||||||
| 19 | candy, grooming and hygiene products, and soft drinks that had | ||||||
| 20 | been taxed at a rate of 1% prior to September 1, 2009 but that | ||||||
| 21 | are now taxed at 6.25%. | ||||||
| 22 | Beginning July 1, 2013, each month the Department shall | ||||||
| 23 | pay into the Underground Storage Tank Fund from the proceeds | ||||||
| 24 | collected under this Act, the Use Tax Act, the Service | ||||||
| 25 | Occupation Tax Act, and the Retailers' Occupation Tax Act an | ||||||
| 26 | amount equal to the average monthly deficit in the Underground | ||||||
| |||||||
| |||||||
| 1 | Storage Tank Fund during the prior year, as certified annually | ||||||
| 2 | by the Illinois Environmental Protection Agency, but the total | ||||||
| 3 | payment into the Underground Storage Tank Fund under this Act, | ||||||
| 4 | the Use Tax Act, the Service Occupation Tax Act, and the | ||||||
| 5 | Retailers' Occupation Tax Act shall not exceed $18,000,000 in | ||||||
| 6 | any State fiscal year. As used in this paragraph, the "average | ||||||
| 7 | monthly deficit" shall be equal to the difference between the | ||||||
| 8 | average monthly claims for payment by the fund and the average | ||||||
| 9 | monthly revenues deposited into the fund, excluding payments | ||||||
| 10 | made pursuant to this paragraph. | ||||||
| 11 | Beginning July 1, 2015, of the remainder of the moneys | ||||||
| 12 | received by the Department under the Use Tax Act, this Act, the | ||||||
| 13 | Service Occupation Tax Act, and the Retailers' Occupation Tax | ||||||
| 14 | Act, each month the Department shall deposit $500,000 into the | ||||||
| 15 | State Crime Laboratory Fund. | ||||||
| 16 | Of the remainder of the moneys received by the Department | ||||||
| 17 | pursuant to this Act, (a) 1.75% thereof shall be paid into the | ||||||
| 18 | Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on | ||||||
| 19 | and after July 1, 1989, 3.8% thereof shall be paid into the | ||||||
| 20 | Build Illinois Fund; provided, however, that if in any fiscal | ||||||
| 21 | year the sum of (1) the aggregate of 2.2% or 3.8%, as the case | ||||||
| 22 | may be, of the moneys received by the Department and required | ||||||
| 23 | to be paid into the Build Illinois Fund pursuant to Section 3 | ||||||
| 24 | of the Retailers' Occupation Tax Act, Section 9 of the Use Tax | ||||||
| 25 | Act, Section 9 of the Service Use Tax Act, and Section 9 of the | ||||||
| 26 | Service Occupation Tax Act, such Acts being hereinafter called | ||||||
| |||||||
| |||||||
| 1 | the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case | ||||||
| 2 | may be, of moneys being hereinafter called the "Tax Act | ||||||
| 3 | Amount", and (2) the amount transferred to the Build Illinois | ||||||
| 4 | Fund from the State and Local Sales Tax Reform Fund shall be | ||||||
| 5 | less than the Annual Specified Amount (as defined in Section 3 | ||||||
| 6 | of the Retailers' Occupation Tax Act), an amount equal to the | ||||||
| 7 | difference shall be immediately paid into the Build Illinois | ||||||
| 8 | Fund from other moneys received by the Department pursuant to | ||||||
| 9 | the Tax Acts; and further provided, that if on the last | ||||||
| 10 | business day of any month the sum of (1) the Tax Act Amount | ||||||
| 11 | required to be deposited into the Build Illinois Bond Account | ||||||
| 12 | in the Build Illinois Fund during such month and (2) the amount | ||||||
| 13 | transferred during such month to the Build Illinois Fund from | ||||||
| 14 | the State and Local Sales Tax Reform Fund shall have been less | ||||||
| 15 | than 1/12 of the Annual Specified Amount, an amount equal to | ||||||
| 16 | the difference shall be immediately paid into the Build | ||||||
| 17 | Illinois Fund from other moneys received by the Department | ||||||
| 18 | pursuant to the Tax Acts; and, further provided, that in no | ||||||
| 19 | event shall the payments required under the preceding proviso | ||||||
| 20 | result in aggregate payments into the Build Illinois Fund | ||||||
| 21 | pursuant to this clause (b) for any fiscal year in excess of | ||||||
| 22 | the greater of (i) the Tax Act Amount or (ii) the Annual | ||||||
| 23 | Specified Amount for such fiscal year; and, further provided, | ||||||
| 24 | that the amounts payable into the Build Illinois Fund under | ||||||
| 25 | this clause (b) shall be payable only until such time as the | ||||||
| 26 | aggregate amount on deposit under each trust indenture | ||||||
| |||||||
| |||||||
| 1 | securing Bonds issued and outstanding pursuant to the Build | ||||||
| 2 | Illinois Bond Act is sufficient, taking into account any | ||||||
| 3 | future investment income, to fully provide, in accordance with | ||||||
| 4 | such indenture, for the defeasance of or the payment of the | ||||||
| 5 | principal of, premium, if any, and interest on the Bonds | ||||||
| 6 | secured by such indenture and on any Bonds expected to be | ||||||
| 7 | issued thereafter and all fees and costs payable with respect | ||||||
| 8 | thereto, all as certified by the Director of the Bureau of the | ||||||
| 9 | Budget (now Governor's Office of Management and Budget). If on | ||||||
| 10 | the last business day of any month in which Bonds are | ||||||
| 11 | outstanding pursuant to the Build Illinois Bond Act, the | ||||||
| 12 | aggregate of the moneys deposited in the Build Illinois Bond | ||||||
| 13 | Account in the Build Illinois Fund in such month shall be less | ||||||
| 14 | than the amount required to be transferred in such month from | ||||||
| 15 | the Build Illinois Bond Account to the Build Illinois Bond | ||||||
| 16 | Retirement and Interest Fund pursuant to Section 13 of the | ||||||
| 17 | Build Illinois Bond Act, an amount equal to such deficiency | ||||||
| 18 | shall be immediately paid from other moneys received by the | ||||||
| 19 | Department pursuant to the Tax Acts to the Build Illinois | ||||||
| 20 | Fund; provided, however, that any amounts paid to the Build | ||||||
| 21 | Illinois Fund in any fiscal year pursuant to this sentence | ||||||
| 22 | shall be deemed to constitute payments pursuant to clause (b) | ||||||
| 23 | of the preceding sentence and shall reduce the amount | ||||||
| 24 | otherwise payable for such fiscal year pursuant to clause (b) | ||||||
| 25 | of the preceding sentence. The moneys received by the | ||||||
| 26 | Department pursuant to this Act and required to be deposited | ||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1 | into the Build Illinois Fund are subject to the pledge, claim | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 2 | and charge set forth in Section 12 of the Build Illinois Bond | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 3 | Act. | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 4 | Subject to payment of amounts into the Build Illinois Fund | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 5 | as provided in the preceding paragraph or in any amendment | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 6 | thereto hereafter enacted, the following specified monthly | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 7 | installment of the amount requested in the certificate of the | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 8 | Chairman of the Metropolitan Pier and Exposition Authority | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 9 | provided under Section 8.25f of the State Finance Act, but not | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 10 | in excess of the sums designated as "Total Deposit", shall be | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 11 | deposited in the aggregate from collections under Section 9 of | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 12 | the Use Tax Act, Section 9 of the Service Use Tax Act, Section | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 13 | 9 of the Service Occupation Tax Act, and Section 3 of the | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 14 | Retailers' Occupation Tax Act into the McCormick Place | |||||||||||||||||||||||||||||||||||||||||||||||||||
| 15 | Expansion Project Fund in the specified fiscal years.
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| 18 | Beginning July 20, 1993 and in each month of each fiscal | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 19 | year thereafter, one-eighth of the amount requested in the | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 20 | certificate of the Chairman of the Metropolitan Pier and | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 21 | Exposition Authority for that fiscal year, less the amount | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 22 | deposited into the McCormick Place Expansion Project Fund by | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 23 | the State Treasurer in the respective month under subsection | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 24 | (g) of Section 13 of the Metropolitan Pier and Exposition | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 25 | Authority Act, plus cumulative deficiencies in the deposits | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 26 | required under this Section for previous months and years, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||
| |||||||
| 1 | shall be deposited into the McCormick Place Expansion Project | ||||||
| 2 | Fund, until the full amount requested for the fiscal year, but | ||||||
| 3 | not in excess of the amount specified above as "Total | ||||||
| 4 | Deposit", has been deposited. | ||||||
| 5 | Subject to payment of amounts into the Capital Projects | ||||||
| 6 | Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, | ||||||
| 7 | and the McCormick Place Expansion Project Fund pursuant to the | ||||||
| 8 | preceding paragraphs or in any amendments thereto hereafter | ||||||
| 9 | enacted, for aviation fuel sold on or after December 1, 2019, | ||||||
| 10 | the Department shall each month deposit into the Aviation Fuel | ||||||
| 11 | Sales Tax Refund Fund an amount estimated by the Department to | ||||||
| 12 | be required for refunds of the 80% portion of the tax on | ||||||
| 13 | aviation fuel under this Act. The Department shall only | ||||||
| 14 | deposit moneys into the Aviation Fuel Sales Tax Refund Fund | ||||||
| 15 | under this paragraph for so long as the revenue use | ||||||
| 16 | requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are | ||||||
| 17 | binding on the State. | ||||||
| 18 | Subject to payment of amounts into the Build Illinois Fund | ||||||
| 19 | and the McCormick Place Expansion Project Fund pursuant to the | ||||||
| 20 | preceding paragraphs or in any amendments thereto hereafter | ||||||
| 21 | enacted, beginning July 1, 1993 and ending on September 30, | ||||||
| 22 | 2013, the Department shall each month pay into the Illinois | ||||||
| 23 | Tax Increment Fund 0.27% of 80% of the net revenue realized for | ||||||
| 24 | the preceding month from the 6.25% general rate on the selling | ||||||
| 25 | price of tangible personal property. | ||||||
| 26 | Subject to payment of amounts into the Build Illinois | ||||||
| |||||||
| |||||||
| 1 | Fund, the McCormick Place Expansion Project Fund, the Illinois | ||||||
| 2 | Tax Increment Fund, pursuant to the preceding paragraphs or in | ||||||
| 3 | any amendments to this Section hereafter enacted, beginning on | ||||||
| 4 | the first day of the first calendar month to occur on or after | ||||||
| 5 | August 26, 2014 (the effective date of Public Act 98-1098), | ||||||
| 6 | each month, from the collections made under Section 9 of the | ||||||
| 7 | Use Tax Act, Section 9 of the Service Use Tax Act, Section 9 of | ||||||
| 8 | the Service Occupation Tax Act, and Section 3 of the | ||||||
| 9 | Retailers' Occupation Tax Act, the Department shall pay into | ||||||
| 10 | the Tax Compliance and Administration Fund, to be used, | ||||||
| 11 | subject to appropriation, to fund additional auditors and | ||||||
| 12 | compliance personnel at the Department of Revenue, an amount | ||||||
| 13 | equal to 1/12 of 5% of 80% of the cash receipts collected | ||||||
| 14 | during the preceding fiscal year by the Audit Bureau of the | ||||||
| 15 | Department under the Use Tax Act, the Service Use Tax Act, the | ||||||
| 16 | Service Occupation Tax Act, the Retailers' Occupation Tax Act, | ||||||
| 17 | and associated local occupation and use taxes administered by | ||||||
| 18 | the Department. | ||||||
| 19 | Subject to payments of amounts into the Build Illinois | ||||||
| 20 | Fund, the McCormick Place Expansion Project Fund, the Illinois | ||||||
| 21 | Tax Increment Fund, and the Tax Compliance and Administration | ||||||
| 22 | Fund as provided in this Section, beginning on July 1, 2018 the | ||||||
| 23 | Department shall pay each month into the Downstate Public | ||||||
| 24 | Transportation Fund the moneys required to be so paid under | ||||||
| 25 | Section 2-3 of the Downstate Public Transportation Act. | ||||||
| 26 | Subject to successful execution and delivery of a | ||||||
| |||||||
| |||||||
| 1 | public-private agreement between the public agency and private | ||||||
| 2 | entity and completion of the civic build, beginning on July 1, | ||||||
| 3 | 2023, of the remainder of the moneys received by the | ||||||
| 4 | Department under the Use Tax Act, the Service Use Tax Act, the | ||||||
| 5 | Service Occupation Tax Act, and this Act, the Department shall | ||||||
| 6 | deposit the following specified deposits in the aggregate from | ||||||
| 7 | collections under the Use Tax Act, the Service Use Tax Act, the | ||||||
| 8 | Service Occupation Tax Act, and the Retailers' Occupation Tax | ||||||
| 9 | Act, as required under Section 8.25g of the State Finance Act | ||||||
| 10 | for distribution consistent with the Public-Private | ||||||
| 11 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
| 12 | The moneys received by the Department pursuant to this Act and | ||||||
| 13 | required to be deposited into the Civic and Transit | ||||||
| 14 | Infrastructure Fund are subject to the pledge, claim, and | ||||||
| 15 | charge set forth in Section 25-55 of the Public-Private | ||||||
| 16 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
| 17 | As used in this paragraph, "civic build", "private entity", | ||||||
| 18 | "public-private agreement", and "public agency" have the | ||||||
| 19 | meanings provided in Section 25-10 of the Public-Private | ||||||
| 20 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
| 21 | Fiscal Year............................Total Deposit | ||||||
| 22 | 2024....................................$200,000,000 | ||||||
| 23 | 2025....................................$206,000,000 | ||||||
| 24 | 2026....................................$212,200,000 | ||||||
| 25 | 2027....................................$218,500,000 | ||||||
| 26 | 2028....................................$225,100,000 | ||||||
| |||||||
| |||||||
| 1 | 2029....................................$288,700,000 | ||||||
| 2 | 2030....................................$298,900,000 | ||||||
| 3 | 2031....................................$309,300,000 | ||||||
| 4 | 2032....................................$320,100,000 | ||||||
| 5 | 2033....................................$331,200,000 | ||||||
| 6 | 2034....................................$341,200,000 | ||||||
| 7 | 2035....................................$351,400,000 | ||||||
| 8 | 2036....................................$361,900,000 | ||||||
| 9 | 2037....................................$372,800,000 | ||||||
| 10 | 2038....................................$384,000,000 | ||||||
| 11 | 2039....................................$395,500,000 | ||||||
| 12 | 2040....................................$407,400,000 | ||||||
| 13 | 2041....................................$419,600,000 | ||||||
| 14 | 2042....................................$432,200,000 | ||||||
| 15 | 2043....................................$445,100,000 | ||||||
| 16 | Beginning July 1, 2021 and until July 1, 2022, subject to | ||||||
| 17 | the payment of amounts into the State and Local Sales Tax | ||||||
| 18 | Reform Fund, the Build Illinois Fund, the McCormick Place | ||||||
| 19 | Expansion Project Fund, the Energy Infrastructure Fund, and | ||||||
| 20 | the Tax Compliance and Administration Fund as provided in this | ||||||
| 21 | Section, the Department shall pay each month into the Road | ||||||
| 22 | Fund the amount estimated to represent 16% of the net revenue | ||||||
| 23 | realized from the taxes imposed on motor fuel and gasohol. | ||||||
| 24 | Beginning July 1, 2022 and until July 1, 2023, subject to the | ||||||
| 25 | payment of amounts into the State and Local Sales Tax Reform | ||||||
| 26 | Fund, the Build Illinois Fund, the McCormick Place Expansion | ||||||
| |||||||
| |||||||
| 1 | Project Fund, the Illinois Tax Increment Fund, and the Tax | ||||||
| 2 | Compliance and Administration Fund as provided in this | ||||||
| 3 | Section, the Department shall pay each month into the Road | ||||||
| 4 | Fund the amount estimated to represent 32% of the net revenue | ||||||
| 5 | realized from the taxes imposed on motor fuel and gasohol. | ||||||
| 6 | Beginning July 1, 2023 and until July 1, 2024, subject to the | ||||||
| 7 | payment of amounts into the State and Local Sales Tax Reform | ||||||
| 8 | Fund, the Build Illinois Fund, the McCormick Place Expansion | ||||||
| 9 | Project Fund, the Illinois Tax Increment Fund, and the Tax | ||||||
| 10 | Compliance and Administration Fund as provided in this | ||||||
| 11 | Section, the Department shall pay each month into the Road | ||||||
| 12 | Fund the amount estimated to represent 48% of the net revenue | ||||||
| 13 | realized from the taxes imposed on motor fuel and gasohol. | ||||||
| 14 | Beginning July 1, 2024 and until July 1, 2025, subject to the | ||||||
| 15 | payment of amounts into the State and Local Sales Tax Reform | ||||||
| 16 | Fund, the Build Illinois Fund, the McCormick Place Expansion | ||||||
| 17 | Project Fund, the Illinois Tax Increment Fund, and the Tax | ||||||
| 18 | Compliance and Administration Fund as provided in this | ||||||
| 19 | Section, the Department shall pay each month into the Road | ||||||
| 20 | Fund the amount estimated to represent 64% of the net revenue | ||||||
| 21 | realized from the taxes imposed on motor fuel and gasohol. | ||||||
| 22 | Beginning on July 1, 2025, subject to the payment of amounts | ||||||
| 23 | into the State and Local Sales Tax Reform Fund, the Build | ||||||
| 24 | Illinois Fund, the McCormick Place Expansion Project Fund, the | ||||||
| 25 | Illinois Tax Increment Fund, and the Tax Compliance and | ||||||
| 26 | Administration Fund as provided in this Section, the | ||||||
| |||||||
| |||||||
| 1 | Department shall pay each month into the Road Fund the amount | ||||||
| 2 | estimated to represent 80% of the net revenue realized from | ||||||
| 3 | the taxes imposed on motor fuel and gasohol. As used in this | ||||||
| 4 | paragraph "motor fuel" has the meaning given to that term in | ||||||
| 5 | Section 1.1 of the Motor Fuel Tax Law, and "gasohol" has the | ||||||
| 6 | meaning given to that term in Section 3-40 of the Use Tax Act. | ||||||
| 7 | Of the remainder of the moneys received by the Department | ||||||
| 8 | pursuant to this Act, 75% thereof shall be paid into the | ||||||
| 9 | General Revenue Fund of the State Treasury and 25% shall be | ||||||
| 10 | reserved in a special account and used only for the transfer to | ||||||
| 11 | the Common School Fund as part of the monthly transfer from the | ||||||
| 12 | General Revenue Fund in accordance with Section 8a of the | ||||||
| 13 | State Finance Act. | ||||||
| 14 | As soon as possible after the first day of each month, upon | ||||||
| 15 | certification of the Department of Revenue, the Comptroller | ||||||
| 16 | shall order transferred and the Treasurer shall transfer from | ||||||
| 17 | the General Revenue Fund to the Motor Fuel Tax Fund an amount | ||||||
| 18 | equal to 1.7% of 80% of the net revenue realized under this Act | ||||||
| 19 | for the second preceding month. Beginning April 1, 2000, this | ||||||
| 20 | transfer is no longer required and shall not be made. | ||||||
| 21 | Net revenue realized for a month shall be the revenue | ||||||
| 22 | collected by the State pursuant to this Act, less the amount | ||||||
| 23 | paid out during that month as refunds to taxpayers for | ||||||
| 24 | overpayment of liability. | ||||||
| 25 | (Source: P.A. 102-700, eff. 4-19-22; 103-363, eff. 7-28-23.)
| ||||||
| |||||||
| |||||||
| 1 | Section 110-15. The Service Occupation Tax Act is amended | ||||||
| 2 | by changing Section 9 as follows:
| ||||||
| 3 | (35 ILCS 115/9) (from Ch. 120, par. 439.109) | ||||||
| 4 | Sec. 9. Each serviceman required or authorized to collect | ||||||
| 5 | the tax herein imposed shall pay to the Department the amount | ||||||
| 6 | of such tax at the time when he is required to file his return | ||||||
| 7 | for the period during which such tax was collectible, less a | ||||||
| 8 | discount of 2.1% prior to January 1, 1990, and 1.75% on and | ||||||
| 9 | after January 1, 1990, or $5 per calendar year, whichever is | ||||||
| 10 | greater, which is allowed to reimburse the serviceman for | ||||||
| 11 | expenses incurred in collecting the tax, keeping records, | ||||||
| 12 | preparing and filing returns, remitting the tax, and supplying | ||||||
| 13 | data to the Department on request. Beginning with returns due | ||||||
| 14 | on or after January 1, 2025, the vendor's discount allowed in | ||||||
| 15 | this Section, the Retailers' Occupation Tax Act, the Use Tax | ||||||
| 16 | Act, and the Service Use Tax Act, including any local tax | ||||||
| 17 | administered by the Department and reported on the same | ||||||
| 18 | return, shall not exceed $1,000 per month in the aggregate. | ||||||
| 19 | When determining the discount allowed under this Section, | ||||||
| 20 | servicemen shall include the amount of tax that would have | ||||||
| 21 | been due at the 1% rate but for the 0% rate imposed under | ||||||
| 22 | Public Act 102-700 this amendatory Act of the 102nd General | ||||||
| 23 | Assembly. The discount under this Section is not allowed for | ||||||
| 24 | the 1.25% portion of taxes paid on aviation fuel that is | ||||||
| 25 | subject to the revenue use requirements of 49 U.S.C. 47107(b) | ||||||
| |||||||
| |||||||
| 1 | and 49 U.S.C. 47133. The discount allowed under this Section | ||||||
| 2 | is allowed only for returns that are filed in the manner | ||||||
| 3 | required by this Act. The Department may disallow the discount | ||||||
| 4 | for servicemen whose certificate of registration is revoked at | ||||||
| 5 | the time the return is filed, but only if the Department's | ||||||
| 6 | decision to revoke the certificate of registration has become | ||||||
| 7 | final. | ||||||
| 8 | Where such tangible personal property is sold under a | ||||||
| 9 | conditional sales contract, or under any other form of sale | ||||||
| 10 | wherein the payment of the principal sum, or a part thereof, is | ||||||
| 11 | extended beyond the close of the period for which the return is | ||||||
| 12 | filed, the serviceman, in collecting the tax may collect, for | ||||||
| 13 | each tax return period, only the tax applicable to the part of | ||||||
| 14 | the selling price actually received during such tax return | ||||||
| 15 | period. | ||||||
| 16 | Except as provided hereinafter in this Section, on or | ||||||
| 17 | before the twentieth day of each calendar month, such | ||||||
| 18 | serviceman shall file a return for the preceding calendar | ||||||
| 19 | month in accordance with reasonable rules and regulations to | ||||||
| 20 | be promulgated by the Department of Revenue. Such return shall | ||||||
| 21 | be filed on a form prescribed by the Department and shall | ||||||
| 22 | contain such information as the Department may reasonably | ||||||
| 23 | require. The return shall include the gross receipts which | ||||||
| 24 | were received during the preceding calendar month or quarter | ||||||
| 25 | on the following items upon which tax would have been due but | ||||||
| 26 | for the 0% rate imposed under Public Act 102-700 this | ||||||
| |||||||
| |||||||
| 1 | amendatory Act of the 102nd General Assembly: (i) food for | ||||||
| 2 | human consumption that is to be consumed off the premises | ||||||
| 3 | where it is sold (other than alcoholic beverages, food | ||||||
| 4 | consisting of or infused with adult use cannabis, soft drinks, | ||||||
| 5 | and food that has been prepared for immediate consumption); | ||||||
| 6 | and (ii) food prepared for immediate consumption and | ||||||
| 7 | transferred incident to a sale of service subject to this Act | ||||||
| 8 | or the Service Use Tax Act by an entity licensed under the | ||||||
| 9 | Hospital Licensing Act, the Nursing Home Care Act, the | ||||||
| 10 | Assisted Living and Shared Housing Act, the ID/DD Community | ||||||
| 11 | Care Act, the MC/DD Act, the Specialized Mental Health | ||||||
| 12 | Rehabilitation Act of 2013, or the Child Care Act of 1969, or | ||||||
| 13 | an entity that holds a permit issued pursuant to the Life Care | ||||||
| 14 | Facilities Act. The return shall also include the amount of | ||||||
| 15 | tax that would have been due on the items listed in the | ||||||
| 16 | previous sentence but for the 0% rate imposed under Public Act | ||||||
| 17 | 102-700 this amendatory Act of the 102nd General Assembly. | ||||||
| 18 | On and after January 1, 2018, with respect to servicemen | ||||||
| 19 | whose annual gross receipts average $20,000 or more, all | ||||||
| 20 | returns required to be filed pursuant to this Act shall be | ||||||
| 21 | filed electronically. Servicemen who demonstrate that they do | ||||||
| 22 | not have access to the Internet or demonstrate hardship in | ||||||
| 23 | filing electronically may petition the Department to waive the | ||||||
| 24 | electronic filing requirement. | ||||||
| 25 | The Department may require returns to be filed on a | ||||||
| 26 | quarterly basis. If so required, a return for each calendar | ||||||
| |||||||
| |||||||
| 1 | quarter shall be filed on or before the twentieth day of the | ||||||
| 2 | calendar month following the end of such calendar quarter. The | ||||||
| 3 | taxpayer shall also file a return with the Department for each | ||||||
| 4 | of the first two months of each calendar quarter, on or before | ||||||
| 5 | the twentieth day of the following calendar month, stating: | ||||||
| 6 | 1. The name of the seller; | ||||||
| 7 | 2. The address of the principal place of business from | ||||||
| 8 | which he engages in business as a serviceman in this | ||||||
| 9 | State; | ||||||
| 10 | 3. The total amount of taxable receipts received by | ||||||
| 11 | him during the preceding calendar month, including | ||||||
| 12 | receipts from charge and time sales, but less all | ||||||
| 13 | deductions allowed by law; | ||||||
| 14 | 4. The amount of credit provided in Section 2d of this | ||||||
| 15 | Act; | ||||||
| 16 | 5. The amount of tax due; | ||||||
| 17 | 5-5. The signature of the taxpayer; and | ||||||
| 18 | 6. Such other reasonable information as the Department | ||||||
| 19 | may require. | ||||||
| 20 | Each serviceman required or authorized to collect the tax | ||||||
| 21 | herein imposed on aviation fuel acquired as an incident to the | ||||||
| 22 | purchase of a service in this State during the preceding | ||||||
| 23 | calendar month shall, instead of reporting and paying tax as | ||||||
| 24 | otherwise required by this Section, report and pay such tax on | ||||||
| 25 | a separate aviation fuel tax return. The requirements related | ||||||
| 26 | to the return shall be as otherwise provided in this Section. | ||||||
| |||||||
| |||||||
| 1 | Notwithstanding any other provisions of this Act to the | ||||||
| 2 | contrary, servicemen transferring aviation fuel incident to | ||||||
| 3 | sales of service shall file all aviation fuel tax returns and | ||||||
| 4 | shall make all aviation fuel tax payments by electronic means | ||||||
| 5 | in the manner and form required by the Department. For | ||||||
| 6 | purposes of this Section, "aviation fuel" means jet fuel and | ||||||
| 7 | aviation gasoline. | ||||||
| 8 | If a taxpayer fails to sign a return within 30 days after | ||||||
| 9 | the proper notice and demand for signature by the Department, | ||||||
| 10 | the return shall be considered valid and any amount shown to be | ||||||
| 11 | due on the return shall be deemed assessed. | ||||||
| 12 | Notwithstanding any other provision of this Act to the | ||||||
| 13 | contrary, servicemen subject to tax on cannabis shall file all | ||||||
| 14 | cannabis tax returns and shall make all cannabis tax payments | ||||||
| 15 | by electronic means in the manner and form required by the | ||||||
| 16 | Department. | ||||||
| 17 | Prior to October 1, 2003, and on and after September 1, | ||||||
| 18 | 2004 a serviceman may accept a Manufacturer's Purchase Credit | ||||||
| 19 | certification from a purchaser in satisfaction of Service Use | ||||||
| 20 | Tax as provided in Section 3-70 of the Service Use Tax Act if | ||||||
| 21 | the purchaser provides the appropriate documentation as | ||||||
| 22 | required by Section 3-70 of the Service Use Tax Act. A | ||||||
| 23 | Manufacturer's Purchase Credit certification, accepted prior | ||||||
| 24 | to October 1, 2003 or on or after September 1, 2004 by a | ||||||
| 25 | serviceman as provided in Section 3-70 of the Service Use Tax | ||||||
| 26 | Act, may be used by that serviceman to satisfy Service | ||||||
| |||||||
| |||||||
| 1 | Occupation Tax liability in the amount claimed in the | ||||||
| 2 | certification, not to exceed 6.25% of the receipts subject to | ||||||
| 3 | tax from a qualifying purchase. A Manufacturer's Purchase | ||||||
| 4 | Credit reported on any original or amended return filed under | ||||||
| 5 | this Act after October 20, 2003 for reporting periods prior to | ||||||
| 6 | September 1, 2004 shall be disallowed. Manufacturer's Purchase | ||||||
| 7 | Credit reported on annual returns due on or after January 1, | ||||||
| 8 | 2005 will be disallowed for periods prior to September 1, | ||||||
| 9 | 2004. No Manufacturer's Purchase Credit may be used after | ||||||
| 10 | September 30, 2003 through August 31, 2004 to satisfy any tax | ||||||
| 11 | liability imposed under this Act, including any audit | ||||||
| 12 | liability. | ||||||
| 13 | Beginning on July 1, 2023 and through December 31, 2032, a | ||||||
| 14 | serviceman may accept a Sustainable Aviation Fuel Purchase | ||||||
| 15 | Credit certification from an air common carrier-purchaser in | ||||||
| 16 | satisfaction of Service Use Tax as provided in Section 3-72 of | ||||||
| 17 | the Service Use Tax Act if the purchaser provides the | ||||||
| 18 | appropriate documentation as required by Section 3-72 of the | ||||||
| 19 | Service Use Tax Act. A Sustainable Aviation Fuel Purchase | ||||||
| 20 | Credit certification accepted by a serviceman in accordance | ||||||
| 21 | with this paragraph may be used by that serviceman to satisfy | ||||||
| 22 | service occupation tax liability (but not in satisfaction of | ||||||
| 23 | penalty or interest) in the amount claimed in the | ||||||
| 24 | certification, not to exceed 6.25% of the receipts subject to | ||||||
| 25 | tax from a sale of aviation fuel. In addition, for a sale of | ||||||
| 26 | aviation fuel to qualify to earn the Sustainable Aviation Fuel | ||||||
| |||||||
| |||||||
| 1 | Purchase Credit, servicemen must retain in their books and | ||||||
| 2 | records a certification from the producer of the aviation fuel | ||||||
| 3 | that the aviation fuel sold by the serviceman and for which a | ||||||
| 4 | sustainable aviation fuel purchase credit was earned meets the | ||||||
| 5 | definition of sustainable aviation fuel under Section 3-72 of | ||||||
| 6 | the Service Use Tax Act. The documentation must include detail | ||||||
| 7 | sufficient for the Department to determine the number of | ||||||
| 8 | gallons of sustainable aviation fuel sold. | ||||||
| 9 | If the serviceman's average monthly tax liability to the | ||||||
| 10 | Department does not exceed $200, the Department may authorize | ||||||
| 11 | his returns to be filed on a quarter annual basis, with the | ||||||
| 12 | return for January, February, and March of a given year being | ||||||
| 13 | due by April 20 of such year; with the return for April, May, | ||||||
| 14 | and June of a given year being due by July 20 of such year; | ||||||
| 15 | with the return for July, August, and September of a given year | ||||||
| 16 | being due by October 20 of such year, and with the return for | ||||||
| 17 | October, November, and December of a given year being due by | ||||||
| 18 | January 20 of the following year. | ||||||
| 19 | If the serviceman's average monthly tax liability to the | ||||||
| 20 | Department does not exceed $50, the Department may authorize | ||||||
| 21 | his returns to be filed on an annual basis, with the return for | ||||||
| 22 | a given year being due by January 20 of the following year. | ||||||
| 23 | Such quarter annual and annual returns, as to form and | ||||||
| 24 | substance, shall be subject to the same requirements as | ||||||
| 25 | monthly returns. | ||||||
| 26 | Notwithstanding any other provision in this Act concerning | ||||||
| |||||||
| |||||||
| 1 | the time within which a serviceman may file his return, in the | ||||||
| 2 | case of any serviceman who ceases to engage in a kind of | ||||||
| 3 | business which makes him responsible for filing returns under | ||||||
| 4 | this Act, such serviceman shall file a final return under this | ||||||
| 5 | Act with the Department not more than one 1 month after | ||||||
| 6 | discontinuing such business. | ||||||
| 7 | Beginning October 1, 1993, a taxpayer who has an average | ||||||
| 8 | monthly tax liability of $150,000 or more shall make all | ||||||
| 9 | payments required by rules of the Department by electronic | ||||||
| 10 | funds transfer. Beginning October 1, 1994, a taxpayer who has | ||||||
| 11 | an average monthly tax liability of $100,000 or more shall | ||||||
| 12 | make all payments required by rules of the Department by | ||||||
| 13 | electronic funds transfer. Beginning October 1, 1995, a | ||||||
| 14 | taxpayer who has an average monthly tax liability of $50,000 | ||||||
| 15 | or more shall make all payments required by rules of the | ||||||
| 16 | Department by electronic funds transfer. Beginning October 1, | ||||||
| 17 | 2000, a taxpayer who has an annual tax liability of $200,000 or | ||||||
| 18 | more shall make all payments required by rules of the | ||||||
| 19 | Department by electronic funds transfer. The term "annual tax | ||||||
| 20 | liability" shall be the sum of the taxpayer's liabilities | ||||||
| 21 | under this Act, and under all other State and local occupation | ||||||
| 22 | and use tax laws administered by the Department, for the | ||||||
| 23 | immediately preceding calendar year. The term "average monthly | ||||||
| 24 | tax liability" means the sum of the taxpayer's liabilities | ||||||
| 25 | under this Act, and under all other State and local occupation | ||||||
| 26 | and use tax laws administered by the Department, for the | ||||||
| |||||||
| |||||||
| 1 | immediately preceding calendar year divided by 12. Beginning | ||||||
| 2 | on October 1, 2002, a taxpayer who has a tax liability in the | ||||||
| 3 | amount set forth in subsection (b) of Section 2505-210 of the | ||||||
| 4 | Department of Revenue Law shall make all payments required by | ||||||
| 5 | rules of the Department by electronic funds transfer. | ||||||
| 6 | Before August 1 of each year beginning in 1993, the | ||||||
| 7 | Department shall notify all taxpayers required to make | ||||||
| 8 | payments by electronic funds transfer. All taxpayers required | ||||||
| 9 | to make payments by electronic funds transfer shall make those | ||||||
| 10 | payments for a minimum of one year beginning on October 1. | ||||||
| 11 | Any taxpayer not required to make payments by electronic | ||||||
| 12 | funds transfer may make payments by electronic funds transfer | ||||||
| 13 | with the permission of the Department. | ||||||
| 14 | All taxpayers required to make payment by electronic funds | ||||||
| 15 | transfer and any taxpayers authorized to voluntarily make | ||||||
| 16 | payments by electronic funds transfer shall make those | ||||||
| 17 | payments in the manner authorized by the Department. | ||||||
| 18 | The Department shall adopt such rules as are necessary to | ||||||
| 19 | effectuate a program of electronic funds transfer and the | ||||||
| 20 | requirements of this Section. | ||||||
| 21 | Where a serviceman collects the tax with respect to the | ||||||
| 22 | selling price of tangible personal property which he sells and | ||||||
| 23 | the purchaser thereafter returns such tangible personal | ||||||
| 24 | property and the serviceman refunds the selling price thereof | ||||||
| 25 | to the purchaser, such serviceman shall also refund, to the | ||||||
| 26 | purchaser, the tax so collected from the purchaser. When | ||||||
| |||||||
| |||||||
| 1 | filing his return for the period in which he refunds such tax | ||||||
| 2 | to the purchaser, the serviceman may deduct the amount of the | ||||||
| 3 | tax so refunded by him to the purchaser from any other Service | ||||||
| 4 | Occupation Tax, Service Use Tax, Retailers' Occupation Tax, or | ||||||
| 5 | Use Tax which such serviceman may be required to pay or remit | ||||||
| 6 | to the Department, as shown by such return, provided that the | ||||||
| 7 | amount of the tax to be deducted shall previously have been | ||||||
| 8 | remitted to the Department by such serviceman. If the | ||||||
| 9 | serviceman shall not previously have remitted the amount of | ||||||
| 10 | such tax to the Department, he shall be entitled to no | ||||||
| 11 | deduction hereunder upon refunding such tax to the purchaser. | ||||||
| 12 | If experience indicates such action to be practicable, the | ||||||
| 13 | Department may prescribe and furnish a combination or joint | ||||||
| 14 | return which will enable servicemen, who are required to file | ||||||
| 15 | returns hereunder and also under the Retailers' Occupation Tax | ||||||
| 16 | Act, the Use Tax Act, or the Service Use Tax Act, to furnish | ||||||
| 17 | all the return information required by all said Acts on the one | ||||||
| 18 | form. | ||||||
| 19 | Where the serviceman has more than one business registered | ||||||
| 20 | with the Department under separate registrations hereunder, | ||||||
| 21 | such serviceman shall file separate returns for each | ||||||
| 22 | registered business. | ||||||
| 23 | Beginning January 1, 1990, each month the Department shall | ||||||
| 24 | pay into the Local Government Tax Fund the revenue realized | ||||||
| 25 | for the preceding month from the 1% tax imposed under this Act. | ||||||
| 26 | Beginning January 1, 1990, each month the Department shall | ||||||
| |||||||
| |||||||
| 1 | pay into the County and Mass Transit District Fund 4% of the | ||||||
| 2 | revenue realized for the preceding month from the 6.25% | ||||||
| 3 | general rate on sales of tangible personal property other than | ||||||
| 4 | aviation fuel sold on or after December 1, 2019. This | ||||||
| 5 | exception for aviation fuel only applies for so long as the | ||||||
| 6 | revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. | ||||||
| 7 | 47133 are binding on the State. | ||||||
| 8 | Beginning August 1, 2000, each month the Department shall | ||||||
| 9 | pay into the County and Mass Transit District Fund 20% of the | ||||||
| 10 | net revenue realized for the preceding month from the 1.25% | ||||||
| 11 | rate on the selling price of motor fuel and gasohol. | ||||||
| 12 | Beginning January 1, 1990, each month the Department shall | ||||||
| 13 | pay into the Local Government Tax Fund 16% of the revenue | ||||||
| 14 | realized for the preceding month from the 6.25% general rate | ||||||
| 15 | on transfers of tangible personal property other than aviation | ||||||
| 16 | fuel sold on or after December 1, 2019. This exception for | ||||||
| 17 | aviation fuel only applies for so long as the revenue use | ||||||
| 18 | requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are | ||||||
| 19 | binding on the State. | ||||||
| 20 | For aviation fuel sold on or after December 1, 2019, each | ||||||
| 21 | month the Department shall pay into the State Aviation Program | ||||||
| 22 | Fund 20% of the net revenue realized for the preceding month | ||||||
| 23 | from the 6.25% general rate on the selling price of aviation | ||||||
| 24 | fuel, less an amount estimated by the Department to be | ||||||
| 25 | required for refunds of the 20% portion of the tax on aviation | ||||||
| 26 | fuel under this Act, which amount shall be deposited into the | ||||||
| |||||||
| |||||||
| 1 | Aviation Fuel Sales Tax Refund Fund. The Department shall only | ||||||
| 2 | pay moneys into the State Aviation Program Fund and the | ||||||
| 3 | Aviation Fuel Sales Tax Refund Fund under this Act for so long | ||||||
| 4 | as the revenue use requirements of 49 U.S.C. 47107(b) and 49 | ||||||
| 5 | U.S.C. 47133 are binding on the State. | ||||||
| 6 | Beginning August 1, 2000, each month the Department shall | ||||||
| 7 | pay into the Local Government Tax Fund 80% of the net revenue | ||||||
| 8 | realized for the preceding month from the 1.25% rate on the | ||||||
| 9 | selling price of motor fuel and gasohol. | ||||||
| 10 | Beginning October 1, 2009, each month the Department shall | ||||||
| 11 | pay into the Capital Projects Fund an amount that is equal to | ||||||
| 12 | an amount estimated by the Department to represent 80% of the | ||||||
| 13 | net revenue realized for the preceding month from the sale of | ||||||
| 14 | candy, grooming and hygiene products, and soft drinks that had | ||||||
| 15 | been taxed at a rate of 1% prior to September 1, 2009 but that | ||||||
| 16 | are now taxed at 6.25%. | ||||||
| 17 | Beginning July 1, 2013, each month the Department shall | ||||||
| 18 | pay into the Underground Storage Tank Fund from the proceeds | ||||||
| 19 | collected under this Act, the Use Tax Act, the Service Use Tax | ||||||
| 20 | Act, and the Retailers' Occupation Tax Act an amount equal to | ||||||
| 21 | the average monthly deficit in the Underground Storage Tank | ||||||
| 22 | Fund during the prior year, as certified annually by the | ||||||
| 23 | Illinois Environmental Protection Agency, but the total | ||||||
| 24 | payment into the Underground Storage Tank Fund under this Act, | ||||||
| 25 | the Use Tax Act, the Service Use Tax Act, and the Retailers' | ||||||
| 26 | Occupation Tax Act shall not exceed $18,000,000 in any State | ||||||
| |||||||
| |||||||
| 1 | fiscal year. As used in this paragraph, the "average monthly | ||||||
| 2 | deficit" shall be equal to the difference between the average | ||||||
| 3 | monthly claims for payment by the fund and the average monthly | ||||||
| 4 | revenues deposited into the fund, excluding payments made | ||||||
| 5 | pursuant to this paragraph. | ||||||
| 6 | Beginning July 1, 2015, of the remainder of the moneys | ||||||
| 7 | received by the Department under the Use Tax Act, the Service | ||||||
| 8 | Use Tax Act, this Act, and the Retailers' Occupation Tax Act, | ||||||
| 9 | each month the Department shall deposit $500,000 into the | ||||||
| 10 | State Crime Laboratory Fund. | ||||||
| 11 | Of the remainder of the moneys received by the Department | ||||||
| 12 | pursuant to this Act, (a) 1.75% thereof shall be paid into the | ||||||
| 13 | Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on | ||||||
| 14 | and after July 1, 1989, 3.8% thereof shall be paid into the | ||||||
| 15 | Build Illinois Fund; provided, however, that if in any fiscal | ||||||
| 16 | year the sum of (1) the aggregate of 2.2% or 3.8%, as the case | ||||||
| 17 | may be, of the moneys received by the Department and required | ||||||
| 18 | to be paid into the Build Illinois Fund pursuant to Section 3 | ||||||
| 19 | of the Retailers' Occupation Tax Act, Section 9 of the Use Tax | ||||||
| 20 | Act, Section 9 of the Service Use Tax Act, and Section 9 of the | ||||||
| 21 | Service Occupation Tax Act, such Acts being hereinafter called | ||||||
| 22 | the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case | ||||||
| 23 | may be, of moneys being hereinafter called the "Tax Act | ||||||
| 24 | Amount", and (2) the amount transferred to the Build Illinois | ||||||
| 25 | Fund from the State and Local Sales Tax Reform Fund shall be | ||||||
| 26 | less than the Annual Specified Amount (as defined in Section 3 | ||||||
| |||||||
| |||||||
| 1 | of the Retailers' Occupation Tax Act), an amount equal to the | ||||||
| 2 | difference shall be immediately paid into the Build Illinois | ||||||
| 3 | Fund from other moneys received by the Department pursuant to | ||||||
| 4 | the Tax Acts; and further provided, that if on the last | ||||||
| 5 | business day of any month the sum of (1) the Tax Act Amount | ||||||
| 6 | required to be deposited into the Build Illinois Account in | ||||||
| 7 | the Build Illinois Fund during such month and (2) the amount | ||||||
| 8 | transferred during such month to the Build Illinois Fund from | ||||||
| 9 | the State and Local Sales Tax Reform Fund shall have been less | ||||||
| 10 | than 1/12 of the Annual Specified Amount, an amount equal to | ||||||
| 11 | the difference shall be immediately paid into the Build | ||||||
| 12 | Illinois Fund from other moneys received by the Department | ||||||
| 13 | pursuant to the Tax Acts; and, further provided, that in no | ||||||
| 14 | event shall the payments required under the preceding proviso | ||||||
| 15 | result in aggregate payments into the Build Illinois Fund | ||||||
| 16 | pursuant to this clause (b) for any fiscal year in excess of | ||||||
| 17 | the greater of (i) the Tax Act Amount or (ii) the Annual | ||||||
| 18 | Specified Amount for such fiscal year; and, further provided, | ||||||
| 19 | that the amounts payable into the Build Illinois Fund under | ||||||
| 20 | this clause (b) shall be payable only until such time as the | ||||||
| 21 | aggregate amount on deposit under each trust indenture | ||||||
| 22 | securing Bonds issued and outstanding pursuant to the Build | ||||||
| 23 | Illinois Bond Act is sufficient, taking into account any | ||||||
| 24 | future investment income, to fully provide, in accordance with | ||||||
| 25 | such indenture, for the defeasance of or the payment of the | ||||||
| 26 | principal of, premium, if any, and interest on the Bonds | ||||||
| |||||||
| |||||||
| 1 | secured by such indenture and on any Bonds expected to be | ||||||
| 2 | issued thereafter and all fees and costs payable with respect | ||||||
| 3 | thereto, all as certified by the Director of the Bureau of the | ||||||
| 4 | Budget (now Governor's Office of Management and Budget). If on | ||||||
| 5 | the last business day of any month in which Bonds are | ||||||
| 6 | outstanding pursuant to the Build Illinois Bond Act, the | ||||||
| 7 | aggregate of the moneys deposited in the Build Illinois Bond | ||||||
| 8 | Account in the Build Illinois Fund in such month shall be less | ||||||
| 9 | than the amount required to be transferred in such month from | ||||||
| 10 | the Build Illinois Bond Account to the Build Illinois Bond | ||||||
| 11 | Retirement and Interest Fund pursuant to Section 13 of the | ||||||
| 12 | Build Illinois Bond Act, an amount equal to such deficiency | ||||||
| 13 | shall be immediately paid from other moneys received by the | ||||||
| 14 | Department pursuant to the Tax Acts to the Build Illinois | ||||||
| 15 | Fund; provided, however, that any amounts paid to the Build | ||||||
| 16 | Illinois Fund in any fiscal year pursuant to this sentence | ||||||
| 17 | shall be deemed to constitute payments pursuant to clause (b) | ||||||
| 18 | of the preceding sentence and shall reduce the amount | ||||||
| 19 | otherwise payable for such fiscal year pursuant to clause (b) | ||||||
| 20 | of the preceding sentence. The moneys received by the | ||||||
| 21 | Department pursuant to this Act and required to be deposited | ||||||
| 22 | into the Build Illinois Fund are subject to the pledge, claim | ||||||
| 23 | and charge set forth in Section 12 of the Build Illinois Bond | ||||||
| 24 | Act. | ||||||
| 25 | Subject to payment of amounts into the Build Illinois Fund | ||||||
| 26 | as provided in the preceding paragraph or in any amendment | ||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 1 | thereto hereafter enacted, the following specified monthly | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2 | installment of the amount requested in the certificate of the | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 3 | Chairman of the Metropolitan Pier and Exposition Authority | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 4 | provided under Section 8.25f of the State Finance Act, but not | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 5 | in excess of the sums designated as "Total Deposit", shall be | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 6 | deposited in the aggregate from collections under Section 9 of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 7 | the Use Tax Act, Section 9 of the Service Use Tax Act, Section | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 8 | 9 of the Service Occupation Tax Act, and Section 3 of the | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 9 | Retailers' Occupation Tax Act into the McCormick Place | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 10 | Expansion Project Fund in the specified fiscal years.
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| 13 | Beginning July 20, 1993 and in each month of each fiscal | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 14 | year thereafter, one-eighth of the amount requested in the | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 15 | certificate of the Chairman of the Metropolitan Pier and | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 16 | Exposition Authority for that fiscal year, less the amount | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 17 | deposited into the McCormick Place Expansion Project Fund by | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 18 | the State Treasurer in the respective month under subsection | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 19 | (g) of Section 13 of the Metropolitan Pier and Exposition | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 20 | Authority Act, plus cumulative deficiencies in the deposits | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 21 | required under this Section for previous months and years, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 22 | shall be deposited into the McCormick Place Expansion Project | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 23 | Fund, until the full amount requested for the fiscal year, but | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 24 | not in excess of the amount specified above as "Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 25 | Deposit", has been deposited. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 26 | Subject to payment of amounts into the Capital Projects | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||
| |||||||
| 1 | Fund, the Build Illinois Fund, and the McCormick Place | ||||||
| 2 | Expansion Project Fund pursuant to the preceding paragraphs or | ||||||
| 3 | in any amendments thereto hereafter enacted, for aviation fuel | ||||||
| 4 | sold on or after December 1, 2019, the Department shall each | ||||||
| 5 | month deposit into the Aviation Fuel Sales Tax Refund Fund an | ||||||
| 6 | amount estimated by the Department to be required for refunds | ||||||
| 7 | of the 80% portion of the tax on aviation fuel under this Act. | ||||||
| 8 | The Department shall only deposit moneys into the Aviation | ||||||
| 9 | Fuel Sales Tax Refund Fund under this paragraph for so long as | ||||||
| 10 | the revenue use requirements of 49 U.S.C. 47107(b) and 49 | ||||||
| 11 | U.S.C. 47133 are binding on the State. | ||||||
| 12 | Subject to payment of amounts into the Build Illinois Fund | ||||||
| 13 | and the McCormick Place Expansion Project Fund pursuant to the | ||||||
| 14 | preceding paragraphs or in any amendments thereto hereafter | ||||||
| 15 | enacted, beginning July 1, 1993 and ending on September 30, | ||||||
| 16 | 2013, the Department shall each month pay into the Illinois | ||||||
| 17 | Tax Increment Fund 0.27% of 80% of the net revenue realized for | ||||||
| 18 | the preceding month from the 6.25% general rate on the selling | ||||||
| 19 | price of tangible personal property. | ||||||
| 20 | Subject to payment of amounts into the Build Illinois | ||||||
| 21 | Fund, the McCormick Place Expansion Project Fund, and the | ||||||
| 22 | Illinois Tax Increment Fund pursuant to the preceding | ||||||
| 23 | paragraphs or in any amendments to this Section hereafter | ||||||
| 24 | enacted, beginning on the first day of the first calendar | ||||||
| 25 | month to occur on or after August 26, 2014 (the effective date | ||||||
| 26 | of Public Act 98-1098), each month, from the collections made | ||||||
| |||||||
| |||||||
| 1 | under Section 9 of the Use Tax Act, Section 9 of the Service | ||||||
| 2 | Use Tax Act, Section 9 of the Service Occupation Tax Act, and | ||||||
| 3 | Section 3 of the Retailers' Occupation Tax Act, the Department | ||||||
| 4 | shall pay into the Tax Compliance and Administration Fund, to | ||||||
| 5 | be used, subject to appropriation, to fund additional auditors | ||||||
| 6 | and compliance personnel at the Department of Revenue, an | ||||||
| 7 | amount equal to 1/12 of 5% of 80% of the cash receipts | ||||||
| 8 | collected during the preceding fiscal year by the Audit Bureau | ||||||
| 9 | of the Department under the Use Tax Act, the Service Use Tax | ||||||
| 10 | Act, the Service Occupation Tax Act, the Retailers' Occupation | ||||||
| 11 | Tax Act, and associated local occupation and use taxes | ||||||
| 12 | administered by the Department. | ||||||
| 13 | Subject to payments of amounts into the Build Illinois | ||||||
| 14 | Fund, the McCormick Place Expansion Project Fund, the Illinois | ||||||
| 15 | Tax Increment Fund, and the Tax Compliance and Administration | ||||||
| 16 | Fund as provided in this Section, beginning on July 1, 2018 the | ||||||
| 17 | Department shall pay each month into the Downstate Public | ||||||
| 18 | Transportation Fund the moneys required to be so paid under | ||||||
| 19 | Section 2-3 of the Downstate Public Transportation Act. | ||||||
| 20 | Subject to successful execution and delivery of a | ||||||
| 21 | public-private agreement between the public agency and private | ||||||
| 22 | entity and completion of the civic build, beginning on July 1, | ||||||
| 23 | 2023, of the remainder of the moneys received by the | ||||||
| 24 | Department under the Use Tax Act, the Service Use Tax Act, the | ||||||
| 25 | Service Occupation Tax Act, and this Act, the Department shall | ||||||
| 26 | deposit the following specified deposits in the aggregate from | ||||||
| |||||||
| |||||||
| 1 | collections under the Use Tax Act, the Service Use Tax Act, the | ||||||
| 2 | Service Occupation Tax Act, and the Retailers' Occupation Tax | ||||||
| 3 | Act, as required under Section 8.25g of the State Finance Act | ||||||
| 4 | for distribution consistent with the Public-Private | ||||||
| 5 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
| 6 | The moneys received by the Department pursuant to this Act and | ||||||
| 7 | required to be deposited into the Civic and Transit | ||||||
| 8 | Infrastructure Fund are subject to the pledge, claim and | ||||||
| 9 | charge set forth in Section 25-55 of the Public-Private | ||||||
| 10 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
| 11 | As used in this paragraph, "civic build", "private entity", | ||||||
| 12 | "public-private agreement", and "public agency" have the | ||||||
| 13 | meanings provided in Section 25-10 of the Public-Private | ||||||
| 14 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
| 15 | Fiscal Year............................Total Deposit | ||||||
| 16 | 2024....................................$200,000,000 | ||||||
| 17 | 2025....................................$206,000,000 | ||||||
| 18 | 2026....................................$212,200,000 | ||||||
| 19 | 2027....................................$218,500,000 | ||||||
| 20 | 2028....................................$225,100,000 | ||||||
| 21 | 2029....................................$288,700,000 | ||||||
| 22 | 2030....................................$298,900,000 | ||||||
| 23 | 2031....................................$309,300,000 | ||||||
| 24 | 2032....................................$320,100,000 | ||||||
| 25 | 2033....................................$331,200,000 | ||||||
| 26 | 2034....................................$341,200,000 | ||||||
| |||||||
| |||||||
| 1 | 2035....................................$351,400,000 | ||||||
| 2 | 2036....................................$361,900,000 | ||||||
| 3 | 2037....................................$372,800,000 | ||||||
| 4 | 2038....................................$384,000,000 | ||||||
| 5 | 2039....................................$395,500,000 | ||||||
| 6 | 2040....................................$407,400,000 | ||||||
| 7 | 2041....................................$419,600,000 | ||||||
| 8 | 2042....................................$432,200,000 | ||||||
| 9 | 2043....................................$445,100,000 | ||||||
| 10 | Beginning July 1, 2021 and until July 1, 2022, subject to | ||||||
| 11 | the payment of amounts into the County and Mass Transit | ||||||
| 12 | District Fund, the Local Government Tax Fund, the Build | ||||||
| 13 | Illinois Fund, the McCormick Place Expansion Project Fund, the | ||||||
| 14 | Illinois Tax Increment Fund, and the Tax Compliance and | ||||||
| 15 | Administration Fund as provided in this Section, the | ||||||
| 16 | Department shall pay each month into the Road Fund the amount | ||||||
| 17 | estimated to represent 16% of the net revenue realized from | ||||||
| 18 | the taxes imposed on motor fuel and gasohol. Beginning July 1, | ||||||
| 19 | 2022 and until July 1, 2023, subject to the payment of amounts | ||||||
| 20 | into the County and Mass Transit District Fund, the Local | ||||||
| 21 | Government Tax Fund, the Build Illinois Fund, the McCormick | ||||||
| 22 | Place Expansion Project Fund, the Illinois Tax Increment Fund, | ||||||
| 23 | and the Tax Compliance and Administration Fund as provided in | ||||||
| 24 | this Section, the Department shall pay each month into the | ||||||
| 25 | Road Fund the amount estimated to represent 32% of the net | ||||||
| 26 | revenue realized from the taxes imposed on motor fuel and | ||||||
| |||||||
| |||||||
| 1 | gasohol. Beginning July 1, 2023 and until July 1, 2024, | ||||||
| 2 | subject to the payment of amounts into the County and Mass | ||||||
| 3 | Transit District Fund, the Local Government Tax Fund, the | ||||||
| 4 | Build Illinois Fund, the McCormick Place Expansion Project | ||||||
| 5 | Fund, the Illinois Tax Increment Fund, and the Tax Compliance | ||||||
| 6 | and Administration Fund as provided in this Section, the | ||||||
| 7 | Department shall pay each month into the Road Fund the amount | ||||||
| 8 | estimated to represent 48% of the net revenue realized from | ||||||
| 9 | the taxes imposed on motor fuel and gasohol. Beginning July 1, | ||||||
| 10 | 2024 and until July 1, 2025, subject to the payment of amounts | ||||||
| 11 | into the County and Mass Transit District Fund, the Local | ||||||
| 12 | Government Tax Fund, the Build Illinois Fund, the McCormick | ||||||
| 13 | Place Expansion Project Fund, the Illinois Tax Increment Fund, | ||||||
| 14 | and the Tax Compliance and Administration Fund as provided in | ||||||
| 15 | this Section, the Department shall pay each month into the | ||||||
| 16 | Road Fund the amount estimated to represent 64% of the net | ||||||
| 17 | revenue realized from the taxes imposed on motor fuel and | ||||||
| 18 | gasohol. Beginning on July 1, 2025, subject to the payment of | ||||||
| 19 | amounts into the County and Mass Transit District Fund, the | ||||||
| 20 | Local Government Tax Fund, the Build Illinois Fund, the | ||||||
| 21 | McCormick Place Expansion Project Fund, the Illinois Tax | ||||||
| 22 | Increment Fund, and the Tax Compliance and Administration Fund | ||||||
| 23 | as provided in this Section, the Department shall pay each | ||||||
| 24 | month into the Road Fund the amount estimated to represent 80% | ||||||
| 25 | of the net revenue realized from the taxes imposed on motor | ||||||
| 26 | fuel and gasohol. As used in this paragraph "motor fuel" has | ||||||
| |||||||
| |||||||
| 1 | the meaning given to that term in Section 1.1 of the Motor Fuel | ||||||
| 2 | Tax Law, and "gasohol" has the meaning given to that term in | ||||||
| 3 | Section 3-40 of the Use Tax Act. | ||||||
| 4 | Of the remainder of the moneys received by the Department | ||||||
| 5 | pursuant to this Act, 75% shall be paid into the General | ||||||
| 6 | Revenue Fund of the State treasury Treasury and 25% shall be | ||||||
| 7 | reserved in a special account and used only for the transfer to | ||||||
| 8 | the Common School Fund as part of the monthly transfer from the | ||||||
| 9 | General Revenue Fund in accordance with Section 8a of the | ||||||
| 10 | State Finance Act. | ||||||
| 11 | The Department may, upon separate written notice to a | ||||||
| 12 | taxpayer, require the taxpayer to prepare and file with the | ||||||
| 13 | Department on a form prescribed by the Department within not | ||||||
| 14 | less than 60 days after receipt of the notice an annual | ||||||
| 15 | information return for the tax year specified in the notice. | ||||||
| 16 | Such annual return to the Department shall include a statement | ||||||
| 17 | of gross receipts as shown by the taxpayer's last federal | ||||||
| 18 | Federal income tax return. If the total receipts of the | ||||||
| 19 | business as reported in the federal Federal income tax return | ||||||
| 20 | do not agree with the gross receipts reported to the | ||||||
| 21 | Department of Revenue for the same period, the taxpayer shall | ||||||
| 22 | attach to his annual return a schedule showing a | ||||||
| 23 | reconciliation of the 2 amounts and the reasons for the | ||||||
| 24 | difference. The taxpayer's annual return to the Department | ||||||
| 25 | shall also disclose the cost of goods sold by the taxpayer | ||||||
| 26 | during the year covered by such return, opening and closing | ||||||
| |||||||
| |||||||
| 1 | inventories of such goods for such year, cost of goods used | ||||||
| 2 | from stock or taken from stock and given away by the taxpayer | ||||||
| 3 | during such year, pay roll information of the taxpayer's | ||||||
| 4 | business during such year and any additional reasonable | ||||||
| 5 | information which the Department deems would be helpful in | ||||||
| 6 | determining the accuracy of the monthly, quarterly or annual | ||||||
| 7 | returns filed by such taxpayer as hereinbefore provided for in | ||||||
| 8 | this Section. | ||||||
| 9 | If the annual information return required by this Section | ||||||
| 10 | is not filed when and as required, the taxpayer shall be liable | ||||||
| 11 | as follows: | ||||||
| 12 | (i) Until January 1, 1994, the taxpayer shall be | ||||||
| 13 | liable for a penalty equal to 1/6 of 1% of the tax due from | ||||||
| 14 | such taxpayer under this Act during the period to be | ||||||
| 15 | covered by the annual return for each month or fraction of | ||||||
| 16 | a month until such return is filed as required, the | ||||||
| 17 | penalty to be assessed and collected in the same manner as | ||||||
| 18 | any other penalty provided for in this Act. | ||||||
| 19 | (ii) On and after January 1, 1994, the taxpayer shall | ||||||
| 20 | be liable for a penalty as described in Section 3-4 of the | ||||||
| 21 | Uniform Penalty and Interest Act. | ||||||
| 22 | The chief executive officer, proprietor, owner, or highest | ||||||
| 23 | ranking manager shall sign the annual return to certify the | ||||||
| 24 | accuracy of the information contained therein. Any person who | ||||||
| 25 | willfully signs the annual return containing false or | ||||||
| 26 | inaccurate information shall be guilty of perjury and punished | ||||||
| |||||||
| |||||||
| 1 | accordingly. The annual return form prescribed by the | ||||||
| 2 | Department shall include a warning that the person signing the | ||||||
| 3 | return may be liable for perjury. | ||||||
| 4 | The foregoing portion of this Section concerning the | ||||||
| 5 | filing of an annual information return shall not apply to a | ||||||
| 6 | serviceman who is not required to file an income tax return | ||||||
| 7 | with the United States Government. | ||||||
| 8 | As soon as possible after the first day of each month, upon | ||||||
| 9 | certification of the Department of Revenue, the Comptroller | ||||||
| 10 | shall order transferred and the Treasurer shall transfer from | ||||||
| 11 | the General Revenue Fund to the Motor Fuel Tax Fund an amount | ||||||
| 12 | equal to 1.7% of 80% of the net revenue realized under this Act | ||||||
| 13 | for the second preceding month. Beginning April 1, 2000, this | ||||||
| 14 | transfer is no longer required and shall not be made. | ||||||
| 15 | Net revenue realized for a month shall be the revenue | ||||||
| 16 | collected by the State pursuant to this Act, less the amount | ||||||
| 17 | paid out during that month as refunds to taxpayers for | ||||||
| 18 | overpayment of liability. | ||||||
| 19 | For greater simplicity of administration, it shall be | ||||||
| 20 | permissible for manufacturers, importers and wholesalers whose | ||||||
| 21 | products are sold by numerous servicemen in Illinois, and who | ||||||
| 22 | wish to do so, to assume the responsibility for accounting and | ||||||
| 23 | paying to the Department all tax accruing under this Act with | ||||||
| 24 | respect to such sales, if the servicemen who are affected do | ||||||
| 25 | not make written objection to the Department to this | ||||||
| 26 | arrangement. | ||||||
| |||||||
| |||||||
| 1 | (Source: P.A. 102-700, eff. 4-19-22; 103-9, eff. 6-7-23; | ||||||
| 2 | 103-363, eff. 7-28-23; revised 9-25-23.)
| ||||||
| 3 | Section 110-20. The Retailers' Occupation Tax Act is | ||||||
| 4 | amended by changing Section 3 as follows:
| ||||||
| 5 | (35 ILCS 120/3) (from Ch. 120, par. 442) | ||||||
| 6 | Sec. 3. Except as provided in this Section, on or before | ||||||
| 7 | the twentieth day of each calendar month, every person engaged | ||||||
| 8 | in the business of selling tangible personal property at | ||||||
| 9 | retail in this State during the preceding calendar month shall | ||||||
| 10 | file a return with the Department, stating: | ||||||
| 11 | 1. The name of the seller; | ||||||
| 12 | 2. His residence address and the address of his | ||||||
| 13 | principal place of business and the address of the | ||||||
| 14 | principal place of business (if that is a different | ||||||
| 15 | address) from which he engages in the business of selling | ||||||
| 16 | tangible personal property at retail in this State; | ||||||
| 17 | 3. Total amount of receipts received by him during the | ||||||
| 18 | preceding calendar month or quarter, as the case may be, | ||||||
| 19 | from sales of tangible personal property, and from | ||||||
| 20 | services furnished, by him during such preceding calendar | ||||||
| 21 | month or quarter; | ||||||
| 22 | 4. Total amount received by him during the preceding | ||||||
| 23 | calendar month or quarter on charge and time sales of | ||||||
| 24 | tangible personal property, and from services furnished, | ||||||
| |||||||
| |||||||
| 1 | by him prior to the month or quarter for which the return | ||||||
| 2 | is filed; | ||||||
| 3 | 5. Deductions allowed by law; | ||||||
| 4 | 6. Gross receipts which were received by him during | ||||||
| 5 | the preceding calendar month or quarter and upon the basis | ||||||
| 6 | of which the tax is imposed, including gross receipts on | ||||||
| 7 | food for human consumption that is to be consumed off the | ||||||
| 8 | premises where it is sold (other than alcoholic beverages, | ||||||
| 9 | food consisting of or infused with adult use cannabis, | ||||||
| 10 | soft drinks, and food that has been prepared for immediate | ||||||
| 11 | consumption) which were received during the preceding | ||||||
| 12 | calendar month or quarter and upon which tax would have | ||||||
| 13 | been due but for the 0% rate imposed under Public Act | ||||||
| 14 | 102-700; | ||||||
| 15 | 7. The amount of credit provided in Section 2d of this | ||||||
| 16 | Act; | ||||||
| 17 | 8. The amount of tax due, including the amount of tax | ||||||
| 18 | that would have been due on food for human consumption | ||||||
| 19 | that is to be consumed off the premises where it is sold | ||||||
| 20 | (other than alcoholic beverages, food consisting of or | ||||||
| 21 | infused with adult use cannabis, soft drinks, and food | ||||||
| 22 | that has been prepared for immediate consumption) but for | ||||||
| 23 | the 0% rate imposed under Public Act 102-700; | ||||||
| 24 | 9. The signature of the taxpayer; and | ||||||
| 25 | 10. Such other reasonable information as the | ||||||
| 26 | Department may require. | ||||||
| |||||||
| |||||||
| 1 | On and after January 1, 2018, except for returns required | ||||||
| 2 | to be filed prior to January 1, 2023 for motor vehicles, | ||||||
| 3 | watercraft, aircraft, and trailers that are required to be | ||||||
| 4 | registered with an agency of this State, with respect to | ||||||
| 5 | retailers whose annual gross receipts average $20,000 or more, | ||||||
| 6 | all returns required to be filed pursuant to this Act shall be | ||||||
| 7 | filed electronically. On and after January 1, 2023, with | ||||||
| 8 | respect to retailers whose annual gross receipts average | ||||||
| 9 | $20,000 or more, all returns required to be filed pursuant to | ||||||
| 10 | this Act, including, but not limited to, returns for motor | ||||||
| 11 | vehicles, watercraft, aircraft, and trailers that are required | ||||||
| 12 | to be registered with an agency of this State, shall be filed | ||||||
| 13 | electronically. Retailers who demonstrate that they do not | ||||||
| 14 | have access to the Internet or demonstrate hardship in filing | ||||||
| 15 | electronically may petition the Department to waive the | ||||||
| 16 | electronic filing requirement. | ||||||
| 17 | If a taxpayer fails to sign a return within 30 days after | ||||||
| 18 | the proper notice and demand for signature by the Department, | ||||||
| 19 | the return shall be considered valid and any amount shown to be | ||||||
| 20 | due on the return shall be deemed assessed. | ||||||
| 21 | Each return shall be accompanied by the statement of | ||||||
| 22 | prepaid tax issued pursuant to Section 2e for which credit is | ||||||
| 23 | claimed. | ||||||
| 24 | Prior to October 1, 2003, and on and after September 1, | ||||||
| 25 | 2004, a retailer may accept a Manufacturer's Purchase Credit | ||||||
| 26 | certification from a purchaser in satisfaction of Use Tax as | ||||||
| |||||||
| |||||||
| 1 | provided in Section 3-85 of the Use Tax Act if the purchaser | ||||||
| 2 | provides the appropriate documentation as required by Section | ||||||
| 3 | 3-85 of the Use Tax Act. A Manufacturer's Purchase Credit | ||||||
| 4 | certification, accepted by a retailer prior to October 1, 2003 | ||||||
| 5 | and on and after September 1, 2004 as provided in Section 3-85 | ||||||
| 6 | of the Use Tax Act, may be used by that retailer to satisfy | ||||||
| 7 | Retailers' Occupation Tax liability in the amount claimed in | ||||||
| 8 | the certification, not to exceed 6.25% of the receipts subject | ||||||
| 9 | to tax from a qualifying purchase. A Manufacturer's Purchase | ||||||
| 10 | Credit reported on any original or amended return filed under | ||||||
| 11 | this Act after October 20, 2003 for reporting periods prior to | ||||||
| 12 | September 1, 2004 shall be disallowed. Manufacturer's Purchase | ||||||
| 13 | Credit reported on annual returns due on or after January 1, | ||||||
| 14 | 2005 will be disallowed for periods prior to September 1, | ||||||
| 15 | 2004. No Manufacturer's Purchase Credit may be used after | ||||||
| 16 | September 30, 2003 through August 31, 2004 to satisfy any tax | ||||||
| 17 | liability imposed under this Act, including any audit | ||||||
| 18 | liability. | ||||||
| 19 | Beginning on July 1, 2023 and through December 31, 2032, a | ||||||
| 20 | retailer may accept a Sustainable Aviation Fuel Purchase | ||||||
| 21 | Credit certification from an air common carrier-purchaser in | ||||||
| 22 | satisfaction of Use Tax on aviation fuel as provided in | ||||||
| 23 | Section 3-87 of the Use Tax Act if the purchaser provides the | ||||||
| 24 | appropriate documentation as required by Section 3-87 of the | ||||||
| 25 | Use Tax Act. A Sustainable Aviation Fuel Purchase Credit | ||||||
| 26 | certification accepted by a retailer in accordance with this | ||||||
| |||||||
| |||||||
| 1 | paragraph may be used by that retailer to satisfy Retailers' | ||||||
| 2 | Occupation Tax liability (but not in satisfaction of penalty | ||||||
| 3 | or interest) in the amount claimed in the certification, not | ||||||
| 4 | to exceed 6.25% of the receipts subject to tax from a sale of | ||||||
| 5 | aviation fuel. In addition, for a sale of aviation fuel to | ||||||
| 6 | qualify to earn the Sustainable Aviation Fuel Purchase Credit, | ||||||
| 7 | retailers must retain in their books and records a | ||||||
| 8 | certification from the producer of the aviation fuel that the | ||||||
| 9 | aviation fuel sold by the retailer and for which a sustainable | ||||||
| 10 | aviation fuel purchase credit was earned meets the definition | ||||||
| 11 | of sustainable aviation fuel under Section 3-87 of the Use Tax | ||||||
| 12 | Act. The documentation must include detail sufficient for the | ||||||
| 13 | Department to determine the number of gallons of sustainable | ||||||
| 14 | aviation fuel sold. | ||||||
| 15 | The Department may require returns to be filed on a | ||||||
| 16 | quarterly basis. If so required, a return for each calendar | ||||||
| 17 | quarter shall be filed on or before the twentieth day of the | ||||||
| 18 | calendar month following the end of such calendar quarter. The | ||||||
| 19 | taxpayer shall also file a return with the Department for each | ||||||
| 20 | of the first 2 two months of each calendar quarter, on or | ||||||
| 21 | before the twentieth day of the following calendar month, | ||||||
| 22 | stating: | ||||||
| 23 | 1. The name of the seller; | ||||||
| 24 | 2. The address of the principal place of business from | ||||||
| 25 | which he engages in the business of selling tangible | ||||||
| 26 | personal property at retail in this State; | ||||||
| |||||||
| |||||||
| 1 | 3. The total amount of taxable receipts received by | ||||||
| 2 | him during the preceding calendar month from sales of | ||||||
| 3 | tangible personal property by him during such preceding | ||||||
| 4 | calendar month, including receipts from charge and time | ||||||
| 5 | sales, but less all deductions allowed by law; | ||||||
| 6 | 4. The amount of credit provided in Section 2d of this | ||||||
| 7 | Act; | ||||||
| 8 | 5. The amount of tax due; and | ||||||
| 9 | 6. Such other reasonable information as the Department | ||||||
| 10 | may require. | ||||||
| 11 | Every person engaged in the business of selling aviation | ||||||
| 12 | fuel at retail in this State during the preceding calendar | ||||||
| 13 | month shall, instead of reporting and paying tax as otherwise | ||||||
| 14 | required by this Section, report and pay such tax on a separate | ||||||
| 15 | aviation fuel tax return. The requirements related to the | ||||||
| 16 | return shall be as otherwise provided in this Section. | ||||||
| 17 | Notwithstanding any other provisions of this Act to the | ||||||
| 18 | contrary, retailers selling aviation fuel shall file all | ||||||
| 19 | aviation fuel tax returns and shall make all aviation fuel tax | ||||||
| 20 | payments by electronic means in the manner and form required | ||||||
| 21 | by the Department. For purposes of this Section, "aviation | ||||||
| 22 | fuel" means jet fuel and aviation gasoline. | ||||||
| 23 | Beginning on October 1, 2003, any person who is not a | ||||||
| 24 | licensed distributor, importing distributor, or manufacturer, | ||||||
| 25 | as defined in the Liquor Control Act of 1934, but is engaged in | ||||||
| 26 | the business of selling, at retail, alcoholic liquor shall | ||||||
| |||||||
| |||||||
| 1 | file a statement with the Department of Revenue, in a format | ||||||
| 2 | and at a time prescribed by the Department, showing the total | ||||||
| 3 | amount paid for alcoholic liquor purchased during the | ||||||
| 4 | preceding month and such other information as is reasonably | ||||||
| 5 | required by the Department. The Department may adopt rules to | ||||||
| 6 | require that this statement be filed in an electronic or | ||||||
| 7 | telephonic format. Such rules may provide for exceptions from | ||||||
| 8 | the filing requirements of this paragraph. For the purposes of | ||||||
| 9 | this paragraph, the term "alcoholic liquor" shall have the | ||||||
| 10 | meaning prescribed in the Liquor Control Act of 1934. | ||||||
| 11 | Beginning on October 1, 2003, every distributor, importing | ||||||
| 12 | distributor, and manufacturer of alcoholic liquor as defined | ||||||
| 13 | in the Liquor Control Act of 1934, shall file a statement with | ||||||
| 14 | the Department of Revenue, no later than the 10th day of the | ||||||
| 15 | month for the preceding month during which transactions | ||||||
| 16 | occurred, by electronic means, showing the total amount of | ||||||
| 17 | gross receipts from the sale of alcoholic liquor sold or | ||||||
| 18 | distributed during the preceding month to purchasers; | ||||||
| 19 | identifying the purchaser to whom it was sold or distributed; | ||||||
| 20 | the purchaser's tax registration number; and such other | ||||||
| 21 | information reasonably required by the Department. A | ||||||
| 22 | distributor, importing distributor, or manufacturer of | ||||||
| 23 | alcoholic liquor must personally deliver, mail, or provide by | ||||||
| 24 | electronic means to each retailer listed on the monthly | ||||||
| 25 | statement a report containing a cumulative total of that | ||||||
| 26 | distributor's, importing distributor's, or manufacturer's | ||||||
| |||||||
| |||||||
| 1 | total sales of alcoholic liquor to that retailer no later than | ||||||
| 2 | the 10th day of the month for the preceding month during which | ||||||
| 3 | the transaction occurred. The distributor, importing | ||||||
| 4 | distributor, or manufacturer shall notify the retailer as to | ||||||
| 5 | the method by which the distributor, importing distributor, or | ||||||
| 6 | manufacturer will provide the sales information. If the | ||||||
| 7 | retailer is unable to receive the sales information by | ||||||
| 8 | electronic means, the distributor, importing distributor, or | ||||||
| 9 | manufacturer shall furnish the sales information by personal | ||||||
| 10 | delivery or by mail. For purposes of this paragraph, the term | ||||||
| 11 | "electronic means" includes, but is not limited to, the use of | ||||||
| 12 | a secure Internet website, e-mail, or facsimile. | ||||||
| 13 | If a total amount of less than $1 is payable, refundable or | ||||||
| 14 | creditable, such amount shall be disregarded if it is less | ||||||
| 15 | than 50 cents and shall be increased to $1 if it is 50 cents or | ||||||
| 16 | more. | ||||||
| 17 | Notwithstanding any other provision of this Act to the | ||||||
| 18 | contrary, retailers subject to tax on cannabis shall file all | ||||||
| 19 | cannabis tax returns and shall make all cannabis tax payments | ||||||
| 20 | by electronic means in the manner and form required by the | ||||||
| 21 | Department. | ||||||
| 22 | Beginning October 1, 1993, a taxpayer who has an average | ||||||
| 23 | monthly tax liability of $150,000 or more shall make all | ||||||
| 24 | payments required by rules of the Department by electronic | ||||||
| 25 | funds transfer. Beginning October 1, 1994, a taxpayer who has | ||||||
| 26 | an average monthly tax liability of $100,000 or more shall | ||||||
| |||||||
| |||||||
| 1 | make all payments required by rules of the Department by | ||||||
| 2 | electronic funds transfer. Beginning October 1, 1995, a | ||||||
| 3 | taxpayer who has an average monthly tax liability of $50,000 | ||||||
| 4 | or more shall make all payments required by rules of the | ||||||
| 5 | Department by electronic funds transfer. Beginning October 1, | ||||||
| 6 | 2000, a taxpayer who has an annual tax liability of $200,000 or | ||||||
| 7 | more shall make all payments required by rules of the | ||||||
| 8 | Department by electronic funds transfer. The term "annual tax | ||||||
| 9 | liability" shall be the sum of the taxpayer's liabilities | ||||||
| 10 | under this Act, and under all other State and local occupation | ||||||
| 11 | and use tax laws administered by the Department, for the | ||||||
| 12 | immediately preceding calendar year. The term "average monthly | ||||||
| 13 | tax liability" shall be the sum of the taxpayer's liabilities | ||||||
| 14 | under this Act, and under all other State and local occupation | ||||||
| 15 | and use tax laws administered by the Department, for the | ||||||
| 16 | immediately preceding calendar year divided by 12. Beginning | ||||||
| 17 | on October 1, 2002, a taxpayer who has a tax liability in the | ||||||
| 18 | amount set forth in subsection (b) of Section 2505-210 of the | ||||||
| 19 | Department of Revenue Law shall make all payments required by | ||||||
| 20 | rules of the Department by electronic funds transfer. | ||||||
| 21 | Before August 1 of each year beginning in 1993, the | ||||||
| 22 | Department shall notify all taxpayers required to make | ||||||
| 23 | payments by electronic funds transfer. All taxpayers required | ||||||
| 24 | to make payments by electronic funds transfer shall make those | ||||||
| 25 | payments for a minimum of one year beginning on October 1. | ||||||
| 26 | Any taxpayer not required to make payments by electronic | ||||||
| |||||||
| |||||||
| 1 | funds transfer may make payments by electronic funds transfer | ||||||
| 2 | with the permission of the Department. | ||||||
| 3 | All taxpayers required to make payment by electronic funds | ||||||
| 4 | transfer and any taxpayers authorized to voluntarily make | ||||||
| 5 | payments by electronic funds transfer shall make those | ||||||
| 6 | payments in the manner authorized by the Department. | ||||||
| 7 | The Department shall adopt such rules as are necessary to | ||||||
| 8 | effectuate a program of electronic funds transfer and the | ||||||
| 9 | requirements of this Section. | ||||||
| 10 | Any amount which is required to be shown or reported on any | ||||||
| 11 | return or other document under this Act shall, if such amount | ||||||
| 12 | is not a whole-dollar amount, be increased to the nearest | ||||||
| 13 | whole-dollar amount in any case where the fractional part of a | ||||||
| 14 | dollar is 50 cents or more, and decreased to the nearest | ||||||
| 15 | whole-dollar amount where the fractional part of a dollar is | ||||||
| 16 | less than 50 cents. | ||||||
| 17 | If the retailer is otherwise required to file a monthly | ||||||
| 18 | return and if the retailer's average monthly tax liability to | ||||||
| 19 | the Department does not exceed $200, the Department may | ||||||
| 20 | authorize his returns to be filed on a quarter annual basis, | ||||||
| 21 | with the return for January, February, and March of a given | ||||||
| 22 | year being due by April 20 of such year; with the return for | ||||||
| 23 | April, May, and June of a given year being due by July 20 of | ||||||
| 24 | such year; with the return for July, August, and September of a | ||||||
| 25 | given year being due by October 20 of such year, and with the | ||||||
| 26 | return for October, November, and December of a given year | ||||||
| |||||||
| |||||||
| 1 | being due by January 20 of the following year. | ||||||
| 2 | If the retailer is otherwise required to file a monthly or | ||||||
| 3 | quarterly return and if the retailer's average monthly tax | ||||||
| 4 | liability with the Department does not exceed $50, the | ||||||
| 5 | Department may authorize his returns to be filed on an annual | ||||||
| 6 | basis, with the return for a given year being due by January 20 | ||||||
| 7 | of the following year. | ||||||
| 8 | Such quarter annual and annual returns, as to form and | ||||||
| 9 | substance, shall be subject to the same requirements as | ||||||
| 10 | monthly returns. | ||||||
| 11 | Notwithstanding any other provision in this Act concerning | ||||||
| 12 | the time within which a retailer may file his return, in the | ||||||
| 13 | case of any retailer who ceases to engage in a kind of business | ||||||
| 14 | which makes him responsible for filing returns under this Act, | ||||||
| 15 | such retailer shall file a final return under this Act with the | ||||||
| 16 | Department not more than one month after discontinuing such | ||||||
| 17 | business. | ||||||
| 18 | Where the same person has more than one business | ||||||
| 19 | registered with the Department under separate registrations | ||||||
| 20 | under this Act, such person may not file each return that is | ||||||
| 21 | due as a single return covering all such registered | ||||||
| 22 | businesses, but shall file separate returns for each such | ||||||
| 23 | registered business. | ||||||
| 24 | In addition, with respect to motor vehicles, watercraft, | ||||||
| 25 | aircraft, and trailers that are required to be registered with | ||||||
| 26 | an agency of this State, except as otherwise provided in this | ||||||
| |||||||
| |||||||
| 1 | Section, every retailer selling this kind of tangible personal | ||||||
| 2 | property shall file, with the Department, upon a form to be | ||||||
| 3 | prescribed and supplied by the Department, a separate return | ||||||
| 4 | for each such item of tangible personal property which the | ||||||
| 5 | retailer sells, except that if, in the same transaction, (i) a | ||||||
| 6 | retailer of aircraft, watercraft, motor vehicles, or trailers | ||||||
| 7 | transfers more than one aircraft, watercraft, motor vehicle, | ||||||
| 8 | or trailer to another aircraft, watercraft, motor vehicle | ||||||
| 9 | retailer, or trailer retailer for the purpose of resale or | ||||||
| 10 | (ii) a retailer of aircraft, watercraft, motor vehicles, or | ||||||
| 11 | trailers transfers more than one aircraft, watercraft, motor | ||||||
| 12 | vehicle, or trailer to a purchaser for use as a qualifying | ||||||
| 13 | rolling stock as provided in Section 2-5 of this Act, then that | ||||||
| 14 | seller may report the transfer of all aircraft, watercraft, | ||||||
| 15 | motor vehicles, or trailers involved in that transaction to | ||||||
| 16 | the Department on the same uniform invoice-transaction | ||||||
| 17 | reporting return form. For purposes of this Section, | ||||||
| 18 | "watercraft" means a Class 2, Class 3, or Class 4 watercraft as | ||||||
| 19 | defined in Section 3-2 of the Boat Registration and Safety | ||||||
| 20 | Act, a personal watercraft, or any boat equipped with an | ||||||
| 21 | inboard motor. | ||||||
| 22 | In addition, with respect to motor vehicles, watercraft, | ||||||
| 23 | aircraft, and trailers that are required to be registered with | ||||||
| 24 | an agency of this State, every person who is engaged in the | ||||||
| 25 | business of leasing or renting such items and who, in | ||||||
| 26 | connection with such business, sells any such item to a | ||||||
| |||||||
| |||||||
| 1 | retailer for the purpose of resale is, notwithstanding any | ||||||
| 2 | other provision of this Section to the contrary, authorized to | ||||||
| 3 | meet the return-filing requirement of this Act by reporting | ||||||
| 4 | the transfer of all the aircraft, watercraft, motor vehicles, | ||||||
| 5 | or trailers transferred for resale during a month to the | ||||||
| 6 | Department on the same uniform invoice-transaction reporting | ||||||
| 7 | return form on or before the 20th of the month following the | ||||||
| 8 | month in which the transfer takes place. Notwithstanding any | ||||||
| 9 | other provision of this Act to the contrary, all returns filed | ||||||
| 10 | under this paragraph must be filed by electronic means in the | ||||||
| 11 | manner and form as required by the Department. | ||||||
| 12 | Any retailer who sells only motor vehicles, watercraft, | ||||||
| 13 | aircraft, or trailers that are required to be registered with | ||||||
| 14 | an agency of this State, so that all retailers' occupation tax | ||||||
| 15 | liability is required to be reported, and is reported, on such | ||||||
| 16 | transaction reporting returns and who is not otherwise | ||||||
| 17 | required to file monthly or quarterly returns, need not file | ||||||
| 18 | monthly or quarterly returns. However, those retailers shall | ||||||
| 19 | be required to file returns on an annual basis. | ||||||
| 20 | The transaction reporting return, in the case of motor | ||||||
| 21 | vehicles or trailers that are required to be registered with | ||||||
| 22 | an agency of this State, shall be the same document as the | ||||||
| 23 | Uniform Invoice referred to in Section 5-402 of the Illinois | ||||||
| 24 | Vehicle Code and must show the name and address of the seller; | ||||||
| 25 | the name and address of the purchaser; the amount of the | ||||||
| 26 | selling price including the amount allowed by the retailer for | ||||||
| |||||||
| |||||||
| 1 | traded-in property, if any; the amount allowed by the retailer | ||||||
| 2 | for the traded-in tangible personal property, if any, to the | ||||||
| 3 | extent to which Section 1 of this Act allows an exemption for | ||||||
| 4 | the value of traded-in property; the balance payable after | ||||||
| 5 | deducting such trade-in allowance from the total selling | ||||||
| 6 | price; the amount of tax due from the retailer with respect to | ||||||
| 7 | such transaction; the amount of tax collected from the | ||||||
| 8 | purchaser by the retailer on such transaction (or satisfactory | ||||||
| 9 | evidence that such tax is not due in that particular instance, | ||||||
| 10 | if that is claimed to be the fact); the place and date of the | ||||||
| 11 | sale; a sufficient identification of the property sold; such | ||||||
| 12 | other information as is required in Section 5-402 of the | ||||||
| 13 | Illinois Vehicle Code, and such other information as the | ||||||
| 14 | Department may reasonably require. | ||||||
| 15 | The transaction reporting return in the case of watercraft | ||||||
| 16 | or aircraft must show the name and address of the seller; the | ||||||
| 17 | name and address of the purchaser; the amount of the selling | ||||||
| 18 | price including the amount allowed by the retailer for | ||||||
| 19 | traded-in property, if any; the amount allowed by the retailer | ||||||
| 20 | for the traded-in tangible personal property, if any, to the | ||||||
| 21 | extent to which Section 1 of this Act allows an exemption for | ||||||
| 22 | the value of traded-in property; the balance payable after | ||||||
| 23 | deducting such trade-in allowance from the total selling | ||||||
| 24 | price; the amount of tax due from the retailer with respect to | ||||||
| 25 | such transaction; the amount of tax collected from the | ||||||
| 26 | purchaser by the retailer on such transaction (or satisfactory | ||||||
| |||||||
| |||||||
| 1 | evidence that such tax is not due in that particular instance, | ||||||
| 2 | if that is claimed to be the fact); the place and date of the | ||||||
| 3 | sale, a sufficient identification of the property sold, and | ||||||
| 4 | such other information as the Department may reasonably | ||||||
| 5 | require. | ||||||
| 6 | Such transaction reporting return shall be filed not later | ||||||
| 7 | than 20 days after the day of delivery of the item that is | ||||||
| 8 | being sold, but may be filed by the retailer at any time sooner | ||||||
| 9 | than that if he chooses to do so. The transaction reporting | ||||||
| 10 | return and tax remittance or proof of exemption from the | ||||||
| 11 | Illinois use tax may be transmitted to the Department by way of | ||||||
| 12 | the State agency with which, or State officer with whom the | ||||||
| 13 | tangible personal property must be titled or registered (if | ||||||
| 14 | titling or registration is required) if the Department and | ||||||
| 15 | such agency or State officer determine that this procedure | ||||||
| 16 | will expedite the processing of applications for title or | ||||||
| 17 | registration. | ||||||
| 18 | With each such transaction reporting return, the retailer | ||||||
| 19 | shall remit the proper amount of tax due (or shall submit | ||||||
| 20 | satisfactory evidence that the sale is not taxable if that is | ||||||
| 21 | the case), to the Department or its agents, whereupon the | ||||||
| 22 | Department shall issue, in the purchaser's name, a use tax | ||||||
| 23 | receipt (or a certificate of exemption if the Department is | ||||||
| 24 | satisfied that the particular sale is tax exempt) which such | ||||||
| 25 | purchaser may submit to the agency with which, or State | ||||||
| 26 | officer with whom, he must title or register the tangible | ||||||
| |||||||
| |||||||
| 1 | personal property that is involved (if titling or registration | ||||||
| 2 | is required) in support of such purchaser's application for an | ||||||
| 3 | Illinois certificate or other evidence of title or | ||||||
| 4 | registration to such tangible personal property. | ||||||
| 5 | No retailer's failure or refusal to remit tax under this | ||||||
| 6 | Act precludes a user, who has paid the proper tax to the | ||||||
| 7 | retailer, from obtaining his certificate of title or other | ||||||
| 8 | evidence of title or registration (if titling or registration | ||||||
| 9 | is required) upon satisfying the Department that such user has | ||||||
| 10 | paid the proper tax (if tax is due) to the retailer. The | ||||||
| 11 | Department shall adopt appropriate rules to carry out the | ||||||
| 12 | mandate of this paragraph. | ||||||
| 13 | If the user who would otherwise pay tax to the retailer | ||||||
| 14 | wants the transaction reporting return filed and the payment | ||||||
| 15 | of the tax or proof of exemption made to the Department before | ||||||
| 16 | the retailer is willing to take these actions and such user has | ||||||
| 17 | not paid the tax to the retailer, such user may certify to the | ||||||
| 18 | fact of such delay by the retailer and may (upon the Department | ||||||
| 19 | being satisfied of the truth of such certification) transmit | ||||||
| 20 | the information required by the transaction reporting return | ||||||
| 21 | and the remittance for tax or proof of exemption directly to | ||||||
| 22 | the Department and obtain his tax receipt or exemption | ||||||
| 23 | determination, in which event the transaction reporting return | ||||||
| 24 | and tax remittance (if a tax payment was required) shall be | ||||||
| 25 | credited by the Department to the proper retailer's account | ||||||
| 26 | with the Department, but without the vendor's 2.1% or 1.75% | ||||||
| |||||||
| |||||||
| 1 | discount provided for in this Section being allowed. When the | ||||||
| 2 | user pays the tax directly to the Department, he shall pay the | ||||||
| 3 | tax in the same amount and in the same form in which it would | ||||||
| 4 | be remitted if the tax had been remitted to the Department by | ||||||
| 5 | the retailer. | ||||||
| 6 | Refunds made by the seller during the preceding return | ||||||
| 7 | period to purchasers, on account of tangible personal property | ||||||
| 8 | returned to the seller, shall be allowed as a deduction under | ||||||
| 9 | subdivision 5 of his monthly or quarterly return, as the case | ||||||
| 10 | may be, in case the seller had theretofore included the | ||||||
| 11 | receipts from the sale of such tangible personal property in a | ||||||
| 12 | return filed by him and had paid the tax imposed by this Act | ||||||
| 13 | with respect to such receipts. | ||||||
| 14 | Where the seller is a corporation, the return filed on | ||||||
| 15 | behalf of such corporation shall be signed by the president, | ||||||
| 16 | vice-president, secretary, or treasurer or by the properly | ||||||
| 17 | accredited agent of such corporation. | ||||||
| 18 | Where the seller is a limited liability company, the | ||||||
| 19 | return filed on behalf of the limited liability company shall | ||||||
| 20 | be signed by a manager, member, or properly accredited agent | ||||||
| 21 | of the limited liability company. | ||||||
| 22 | Except as provided in this Section, the retailer filing | ||||||
| 23 | the return under this Section shall, at the time of filing such | ||||||
| 24 | return, pay to the Department the amount of tax imposed by this | ||||||
| 25 | Act less a discount of 2.1% prior to January 1, 1990 and 1.75% | ||||||
| 26 | on and after January 1, 1990, or $5 per calendar year, | ||||||
| |||||||
| |||||||
| 1 | whichever is greater, which is allowed to reimburse the | ||||||
| 2 | retailer for the expenses incurred in keeping records, | ||||||
| 3 | preparing and filing returns, remitting the tax and supplying | ||||||
| 4 | data to the Department on request. On and after January 1, | ||||||
| 5 | 2021, a certified service provider, as defined in the Leveling | ||||||
| 6 | the Playing Field for Illinois Retail Act, filing the return | ||||||
| 7 | under this Section on behalf of a remote retailer shall, at the | ||||||
| 8 | time of such return, pay to the Department the amount of tax | ||||||
| 9 | imposed by this Act less a discount of 1.75%. A remote retailer | ||||||
| 10 | using a certified service provider to file a return on its | ||||||
| 11 | behalf, as provided in the Leveling the Playing Field for | ||||||
| 12 | Illinois Retail Act, is not eligible for the discount. | ||||||
| 13 | Beginning with returns due on or after January 1, 2025, the | ||||||
| 14 | vendor's discount allowed in this Section, the Service | ||||||
| 15 | Occupation Tax Act, the Use Tax Act, and the Service Use Tax | ||||||
| 16 | Act, including any local tax administered by the Department | ||||||
| 17 | and reported on the same return, shall not exceed $1,000 per | ||||||
| 18 | month in the aggregate for returns other than transaction | ||||||
| 19 | returns filed during the month. When determining the discount | ||||||
| 20 | allowed under this Section, retailers shall include the amount | ||||||
| 21 | of tax that would have been due at the 1% rate but for the 0% | ||||||
| 22 | rate imposed under Public Act 102-700. When determining the | ||||||
| 23 | discount allowed under this Section, retailers shall include | ||||||
| 24 | the amount of tax that would have been due at the 6.25% rate | ||||||
| 25 | but for the 1.25% rate imposed on sales tax holiday items under | ||||||
| 26 | Public Act 102-700. The discount under this Section is not | ||||||
| |||||||
| |||||||
| 1 | allowed for the 1.25% portion of taxes paid on aviation fuel | ||||||
| 2 | that is subject to the revenue use requirements of 49 U.S.C. | ||||||
| 3 | 47107(b) and 49 U.S.C. 47133. Any prepayment made pursuant to | ||||||
| 4 | Section 2d of this Act shall be included in the amount on which | ||||||
| 5 | such 2.1% or 1.75% discount is computed. In the case of | ||||||
| 6 | retailers who report and pay the tax on a transaction by | ||||||
| 7 | transaction basis, as provided in this Section, such discount | ||||||
| 8 | shall be taken with each such tax remittance instead of when | ||||||
| 9 | such retailer files his periodic return, but, beginning with | ||||||
| 10 | returns due on or after January 1, 2025, the vendor's discount | ||||||
| 11 | allowed under this Section and the Use Tax Act, including any | ||||||
| 12 | local tax administered by the Department and reported on the | ||||||
| 13 | same transaction return, shall not exceed $1,000 per month for | ||||||
| 14 | all transaction returns filed during the month. The discount | ||||||
| 15 | allowed under this Section is allowed only for returns that | ||||||
| 16 | are filed in the manner required by this Act. The Department | ||||||
| 17 | may disallow the discount for retailers whose certificate of | ||||||
| 18 | registration is revoked at the time the return is filed, but | ||||||
| 19 | only if the Department's decision to revoke the certificate of | ||||||
| 20 | registration has become final. | ||||||
| 21 | Before October 1, 2000, if the taxpayer's average monthly | ||||||
| 22 | tax liability to the Department under this Act, the Use Tax | ||||||
| 23 | Act, the Service Occupation Tax Act, and the Service Use Tax | ||||||
| 24 | Act, excluding any liability for prepaid sales tax to be | ||||||
| 25 | remitted in accordance with Section 2d of this Act, was | ||||||
| 26 | $10,000 or more during the preceding 4 complete calendar | ||||||
| |||||||
| |||||||
| 1 | quarters, he shall file a return with the Department each | ||||||
| 2 | month by the 20th day of the month next following the month | ||||||
| 3 | during which such tax liability is incurred and shall make | ||||||
| 4 | payments to the Department on or before the 7th, 15th, 22nd and | ||||||
| 5 | last day of the month during which such liability is incurred. | ||||||
| 6 | On and after October 1, 2000, if the taxpayer's average | ||||||
| 7 | monthly tax liability to the Department under this Act, the | ||||||
| 8 | Use Tax Act, the Service Occupation Tax Act, and the Service | ||||||
| 9 | Use Tax Act, excluding any liability for prepaid sales tax to | ||||||
| 10 | be remitted in accordance with Section 2d of this Act, was | ||||||
| 11 | $20,000 or more during the preceding 4 complete calendar | ||||||
| 12 | quarters, he shall file a return with the Department each | ||||||
| 13 | month by the 20th day of the month next following the month | ||||||
| 14 | during which such tax liability is incurred and shall make | ||||||
| 15 | payment to the Department on or before the 7th, 15th, 22nd and | ||||||
| 16 | last day of the month during which such liability is incurred. | ||||||
| 17 | If the month during which such tax liability is incurred began | ||||||
| 18 | prior to January 1, 1985, each payment shall be in an amount | ||||||
| 19 | equal to 1/4 of the taxpayer's actual liability for the month | ||||||
| 20 | or an amount set by the Department not to exceed 1/4 of the | ||||||
| 21 | average monthly liability of the taxpayer to the Department | ||||||
| 22 | for the preceding 4 complete calendar quarters (excluding the | ||||||
| 23 | month of highest liability and the month of lowest liability | ||||||
| 24 | in such 4 quarter period). If the month during which such tax | ||||||
| 25 | liability is incurred begins on or after January 1, 1985 and | ||||||
| 26 | prior to January 1, 1987, each payment shall be in an amount | ||||||
| |||||||
| |||||||
| 1 | equal to 22.5% of the taxpayer's actual liability for the | ||||||
| 2 | month or 27.5% of the taxpayer's liability for the same | ||||||
| 3 | calendar month of the preceding year. If the month during | ||||||
| 4 | which such tax liability is incurred begins on or after | ||||||
| 5 | January 1, 1987 and prior to January 1, 1988, each payment | ||||||
| 6 | shall be in an amount equal to 22.5% of the taxpayer's actual | ||||||
| 7 | liability for the month or 26.25% of the taxpayer's liability | ||||||
| 8 | for the same calendar month of the preceding year. If the month | ||||||
| 9 | during which such tax liability is incurred begins on or after | ||||||
| 10 | January 1, 1988, and prior to January 1, 1989, or begins on or | ||||||
| 11 | after January 1, 1996, each payment shall be in an amount equal | ||||||
| 12 | to 22.5% of the taxpayer's actual liability for the month or | ||||||
| 13 | 25% of the taxpayer's liability for the same calendar month of | ||||||
| 14 | the preceding year. If the month during which such tax | ||||||
| 15 | liability is incurred begins on or after January 1, 1989, and | ||||||
| 16 | prior to January 1, 1996, each payment shall be in an amount | ||||||
| 17 | equal to 22.5% of the taxpayer's actual liability for the | ||||||
| 18 | month or 25% of the taxpayer's liability for the same calendar | ||||||
| 19 | month of the preceding year or 100% of the taxpayer's actual | ||||||
| 20 | liability for the quarter monthly reporting period. The amount | ||||||
| 21 | of such quarter monthly payments shall be credited against the | ||||||
| 22 | final tax liability of the taxpayer's return for that month. | ||||||
| 23 | Before October 1, 2000, once applicable, the requirement of | ||||||
| 24 | the making of quarter monthly payments to the Department by | ||||||
| 25 | taxpayers having an average monthly tax liability of $10,000 | ||||||
| 26 | or more as determined in the manner provided above shall | ||||||
| |||||||
| |||||||
| 1 | continue until such taxpayer's average monthly liability to | ||||||
| 2 | the Department during the preceding 4 complete calendar | ||||||
| 3 | quarters (excluding the month of highest liability and the | ||||||
| 4 | month of lowest liability) is less than $9,000, or until such | ||||||
| 5 | taxpayer's average monthly liability to the Department as | ||||||
| 6 | computed for each calendar quarter of the 4 preceding complete | ||||||
| 7 | calendar quarter period is less than $10,000. However, if a | ||||||
| 8 | taxpayer can show the Department that a substantial change in | ||||||
| 9 | the taxpayer's business has occurred which causes the taxpayer | ||||||
| 10 | to anticipate that his average monthly tax liability for the | ||||||
| 11 | reasonably foreseeable future will fall below the $10,000 | ||||||
| 12 | threshold stated above, then such taxpayer may petition the | ||||||
| 13 | Department for a change in such taxpayer's reporting status. | ||||||
| 14 | On and after October 1, 2000, once applicable, the requirement | ||||||
| 15 | of the making of quarter monthly payments to the Department by | ||||||
| 16 | taxpayers having an average monthly tax liability of $20,000 | ||||||
| 17 | or more as determined in the manner provided above shall | ||||||
| 18 | continue until such taxpayer's average monthly liability to | ||||||
| 19 | the Department during the preceding 4 complete calendar | ||||||
| 20 | quarters (excluding the month of highest liability and the | ||||||
| 21 | month of lowest liability) is less than $19,000 or until such | ||||||
| 22 | taxpayer's average monthly liability to the Department as | ||||||
| 23 | computed for each calendar quarter of the 4 preceding complete | ||||||
| 24 | calendar quarter period is less than $20,000. However, if a | ||||||
| 25 | taxpayer can show the Department that a substantial change in | ||||||
| 26 | the taxpayer's business has occurred which causes the taxpayer | ||||||
| |||||||
| |||||||
| 1 | to anticipate that his average monthly tax liability for the | ||||||
| 2 | reasonably foreseeable future will fall below the $20,000 | ||||||
| 3 | threshold stated above, then such taxpayer may petition the | ||||||
| 4 | Department for a change in such taxpayer's reporting status. | ||||||
| 5 | The Department shall change such taxpayer's reporting status | ||||||
| 6 | unless it finds that such change is seasonal in nature and not | ||||||
| 7 | likely to be long term. Quarter monthly payment status shall | ||||||
| 8 | be determined under this paragraph as if the rate reduction to | ||||||
| 9 | 0% in Public Act 102-700 on food for human consumption that is | ||||||
| 10 | to be consumed off the premises where it is sold (other than | ||||||
| 11 | alcoholic beverages, food consisting of or infused with adult | ||||||
| 12 | use cannabis, soft drinks, and food that has been prepared for | ||||||
| 13 | immediate consumption) had not occurred. For quarter monthly | ||||||
| 14 | payments due under this paragraph on or after July 1, 2023 and | ||||||
| 15 | through June 30, 2024, "25% of the taxpayer's liability for | ||||||
| 16 | the same calendar month of the preceding year" shall be | ||||||
| 17 | determined as if the rate reduction to 0% in Public Act 102-700 | ||||||
| 18 | had not occurred. Quarter monthly payment status shall be | ||||||
| 19 | determined under this paragraph as if the rate reduction to | ||||||
| 20 | 1.25% in Public Act 102-700 on sales tax holiday items had not | ||||||
| 21 | occurred. For quarter monthly payments due on or after July 1, | ||||||
| 22 | 2023 and through June 30, 2024, "25% of the taxpayer's | ||||||
| 23 | liability for the same calendar month of the preceding year" | ||||||
| 24 | shall be determined as if the rate reduction to 1.25% in Public | ||||||
| 25 | Act 102-700 on sales tax holiday items had not occurred. If any | ||||||
| 26 | such quarter monthly payment is not paid at the time or in the | ||||||
| |||||||
| |||||||
| 1 | amount required by this Section, then the taxpayer shall be | ||||||
| 2 | liable for penalties and interest on the difference between | ||||||
| 3 | the minimum amount due as a payment and the amount of such | ||||||
| 4 | quarter monthly payment actually and timely paid, except | ||||||
| 5 | insofar as the taxpayer has previously made payments for that | ||||||
| 6 | month to the Department in excess of the minimum payments | ||||||
| 7 | previously due as provided in this Section. The Department | ||||||
| 8 | shall make reasonable rules and regulations to govern the | ||||||
| 9 | quarter monthly payment amount and quarter monthly payment | ||||||
| 10 | dates for taxpayers who file on other than a calendar monthly | ||||||
| 11 | basis. | ||||||
| 12 | The provisions of this paragraph apply before October 1, | ||||||
| 13 | 2001. Without regard to whether a taxpayer is required to make | ||||||
| 14 | quarter monthly payments as specified above, any taxpayer who | ||||||
| 15 | is required by Section 2d of this Act to collect and remit | ||||||
| 16 | prepaid taxes and has collected prepaid taxes which average in | ||||||
| 17 | excess of $25,000 per month during the preceding 2 complete | ||||||
| 18 | calendar quarters, shall file a return with the Department as | ||||||
| 19 | required by Section 2f and shall make payments to the | ||||||
| 20 | Department on or before the 7th, 15th, 22nd and last day of the | ||||||
| 21 | month during which such liability is incurred. If the month | ||||||
| 22 | during which such tax liability is incurred began prior to | ||||||
| 23 | September 1, 1985 (the effective date of Public Act 84-221), | ||||||
| 24 | each payment shall be in an amount not less than 22.5% of the | ||||||
| 25 | taxpayer's actual liability under Section 2d. If the month | ||||||
| 26 | during which such tax liability is incurred begins on or after | ||||||
| |||||||
| |||||||
| 1 | January 1, 1986, each payment shall be in an amount equal to | ||||||
| 2 | 22.5% of the taxpayer's actual liability for the month or | ||||||
| 3 | 27.5% of the taxpayer's liability for the same calendar month | ||||||
| 4 | of the preceding calendar year. If the month during which such | ||||||
| 5 | tax liability is incurred begins on or after January 1, 1987, | ||||||
| 6 | each payment shall be in an amount equal to 22.5% of the | ||||||
| 7 | taxpayer's actual liability for the month or 26.25% of the | ||||||
| 8 | taxpayer's liability for the same calendar month of the | ||||||
| 9 | preceding year. The amount of such quarter monthly payments | ||||||
| 10 | shall be credited against the final tax liability of the | ||||||
| 11 | taxpayer's return for that month filed under this Section or | ||||||
| 12 | Section 2f, as the case may be. Once applicable, the | ||||||
| 13 | requirement of the making of quarter monthly payments to the | ||||||
| 14 | Department pursuant to this paragraph shall continue until | ||||||
| 15 | such taxpayer's average monthly prepaid tax collections during | ||||||
| 16 | the preceding 2 complete calendar quarters is $25,000 or less. | ||||||
| 17 | If any such quarter monthly payment is not paid at the time or | ||||||
| 18 | in the amount required, the taxpayer shall be liable for | ||||||
| 19 | penalties and interest on such difference, except insofar as | ||||||
| 20 | the taxpayer has previously made payments for that month in | ||||||
| 21 | excess of the minimum payments previously due. | ||||||
| 22 | The provisions of this paragraph apply on and after | ||||||
| 23 | October 1, 2001. Without regard to whether a taxpayer is | ||||||
| 24 | required to make quarter monthly payments as specified above, | ||||||
| 25 | any taxpayer who is required by Section 2d of this Act to | ||||||
| 26 | collect and remit prepaid taxes and has collected prepaid | ||||||
| |||||||
| |||||||
| 1 | taxes that average in excess of $20,000 per month during the | ||||||
| 2 | preceding 4 complete calendar quarters shall file a return | ||||||
| 3 | with the Department as required by Section 2f and shall make | ||||||
| 4 | payments to the Department on or before the 7th, 15th, 22nd, | ||||||
| 5 | and last day of the month during which the liability is | ||||||
| 6 | incurred. Each payment shall be in an amount equal to 22.5% of | ||||||
| 7 | the taxpayer's actual liability for the month or 25% of the | ||||||
| 8 | taxpayer's liability for the same calendar month of the | ||||||
| 9 | preceding year. The amount of the quarter monthly payments | ||||||
| 10 | shall be credited against the final tax liability of the | ||||||
| 11 | taxpayer's return for that month filed under this Section or | ||||||
| 12 | Section 2f, as the case may be. Once applicable, the | ||||||
| 13 | requirement of the making of quarter monthly payments to the | ||||||
| 14 | Department pursuant to this paragraph shall continue until the | ||||||
| 15 | taxpayer's average monthly prepaid tax collections during the | ||||||
| 16 | preceding 4 complete calendar quarters (excluding the month of | ||||||
| 17 | highest liability and the month of lowest liability) is less | ||||||
| 18 | than $19,000 or until such taxpayer's average monthly | ||||||
| 19 | liability to the Department as computed for each calendar | ||||||
| 20 | quarter of the 4 preceding complete calendar quarters is less | ||||||
| 21 | than $20,000. If any such quarter monthly payment is not paid | ||||||
| 22 | at the time or in the amount required, the taxpayer shall be | ||||||
| 23 | liable for penalties and interest on such difference, except | ||||||
| 24 | insofar as the taxpayer has previously made payments for that | ||||||
| 25 | month in excess of the minimum payments previously due. | ||||||
| 26 | If any payment provided for in this Section exceeds the | ||||||
| |||||||
| |||||||
| 1 | taxpayer's liabilities under this Act, the Use Tax Act, the | ||||||
| 2 | Service Occupation Tax Act, and the Service Use Tax Act, as | ||||||
| 3 | shown on an original monthly return, the Department shall, if | ||||||
| 4 | requested by the taxpayer, issue to the taxpayer a credit | ||||||
| 5 | memorandum no later than 30 days after the date of payment. The | ||||||
| 6 | credit evidenced by such credit memorandum may be assigned by | ||||||
| 7 | the taxpayer to a similar taxpayer under this Act, the Use Tax | ||||||
| 8 | Act, the Service Occupation Tax Act, or the Service Use Tax | ||||||
| 9 | Act, in accordance with reasonable rules and regulations to be | ||||||
| 10 | prescribed by the Department. If no such request is made, the | ||||||
| 11 | taxpayer may credit such excess payment against tax liability | ||||||
| 12 | subsequently to be remitted to the Department under this Act, | ||||||
| 13 | the Use Tax Act, the Service Occupation Tax Act, or the Service | ||||||
| 14 | Use Tax Act, in accordance with reasonable rules and | ||||||
| 15 | regulations prescribed by the Department. If the Department | ||||||
| 16 | subsequently determined that all or any part of the credit | ||||||
| 17 | taken was not actually due to the taxpayer, the taxpayer's | ||||||
| 18 | 2.1% and 1.75% vendor's discount shall be reduced, if | ||||||
| 19 | necessary, to reflect by 2.1% or 1.75% of the difference | ||||||
| 20 | between the credit taken and that actually due, and that | ||||||
| 21 | taxpayer shall be liable for penalties and interest on such | ||||||
| 22 | difference. | ||||||
| 23 | If a retailer of motor fuel is entitled to a credit under | ||||||
| 24 | Section 2d of this Act which exceeds the taxpayer's liability | ||||||
| 25 | to the Department under this Act for the month for which the | ||||||
| 26 | taxpayer is filing a return, the Department shall issue the | ||||||
| |||||||
| |||||||
| 1 | taxpayer a credit memorandum for the excess. | ||||||
| 2 | Beginning January 1, 1990, each month the Department shall | ||||||
| 3 | pay into the Local Government Tax Fund, a special fund in the | ||||||
| 4 | State treasury which is hereby created, the net revenue | ||||||
| 5 | realized for the preceding month from the 1% tax imposed under | ||||||
| 6 | this Act. | ||||||
| 7 | Beginning January 1, 1990, each month the Department shall | ||||||
| 8 | pay into the County and Mass Transit District Fund, a special | ||||||
| 9 | fund in the State treasury which is hereby created, 4% of the | ||||||
| 10 | net revenue realized for the preceding month from the 6.25% | ||||||
| 11 | general rate other than aviation fuel sold on or after | ||||||
| 12 | December 1, 2019. This exception for aviation fuel only | ||||||
| 13 | applies for so long as the revenue use requirements of 49 | ||||||
| 14 | U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State. | ||||||
| 15 | Beginning August 1, 2000, each month the Department shall | ||||||
| 16 | pay into the County and Mass Transit District Fund 20% of the | ||||||
| 17 | net revenue realized for the preceding month from the 1.25% | ||||||
| 18 | rate on the selling price of motor fuel and gasohol. If, in any | ||||||
| 19 | month, the tax on sales tax holiday items, as defined in | ||||||
| 20 | Section 2-8, is imposed at the rate of 1.25%, then the | ||||||
| 21 | Department shall pay 20% of the net revenue realized for that | ||||||
| 22 | month from the 1.25% rate on the selling price of sales tax | ||||||
| 23 | holiday items into the County and Mass Transit District Fund. | ||||||
| 24 | Beginning January 1, 1990, each month the Department shall | ||||||
| 25 | pay into the Local Government Tax Fund 16% of the net revenue | ||||||
| 26 | realized for the preceding month from the 6.25% general rate | ||||||
| |||||||
| |||||||
| 1 | on the selling price of tangible personal property other than | ||||||
| 2 | aviation fuel sold on or after December 1, 2019. This | ||||||
| 3 | exception for aviation fuel only applies for so long as the | ||||||
| 4 | revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C. | ||||||
| 5 | 47133 are binding on the State. | ||||||
| 6 | For aviation fuel sold on or after December 1, 2019, each | ||||||
| 7 | month the Department shall pay into the State Aviation Program | ||||||
| 8 | Fund 20% of the net revenue realized for the preceding month | ||||||
| 9 | from the 6.25% general rate on the selling price of aviation | ||||||
| 10 | fuel, less an amount estimated by the Department to be | ||||||
| 11 | required for refunds of the 20% portion of the tax on aviation | ||||||
| 12 | fuel under this Act, which amount shall be deposited into the | ||||||
| 13 | Aviation Fuel Sales Tax Refund Fund. The Department shall only | ||||||
| 14 | pay moneys into the State Aviation Program Fund and the | ||||||
| 15 | Aviation Fuel Sales Tax Refund Fund under this Act for so long | ||||||
| 16 | as the revenue use requirements of 49 U.S.C. 47107(b) and 49 | ||||||
| 17 | U.S.C. 47133 are binding on the State. | ||||||
| 18 | Beginning August 1, 2000, each month the Department shall | ||||||
| 19 | pay into the Local Government Tax Fund 80% of the net revenue | ||||||
| 20 | realized for the preceding month from the 1.25% rate on the | ||||||
| 21 | selling price of motor fuel and gasohol. If, in any month, the | ||||||
| 22 | tax on sales tax holiday items, as defined in Section 2-8, is | ||||||
| 23 | imposed at the rate of 1.25%, then the Department shall pay 80% | ||||||
| 24 | of the net revenue realized for that month from the 1.25% rate | ||||||
| 25 | on the selling price of sales tax holiday items into the Local | ||||||
| 26 | Government Tax Fund. | ||||||
| |||||||
| |||||||
| 1 | Beginning October 1, 2009, each month the Department shall | ||||||
| 2 | pay into the Capital Projects Fund an amount that is equal to | ||||||
| 3 | an amount estimated by the Department to represent 80% of the | ||||||
| 4 | net revenue realized for the preceding month from the sale of | ||||||
| 5 | candy, grooming and hygiene products, and soft drinks that had | ||||||
| 6 | been taxed at a rate of 1% prior to September 1, 2009 but that | ||||||
| 7 | are now taxed at 6.25%. | ||||||
| 8 | Beginning July 1, 2011, each month the Department shall | ||||||
| 9 | pay into the Clean Air Act Permit Fund 80% of the net revenue | ||||||
| 10 | realized for the preceding month from the 6.25% general rate | ||||||
| 11 | on the selling price of sorbents used in Illinois in the | ||||||
| 12 | process of sorbent injection as used to comply with the | ||||||
| 13 | Environmental Protection Act or the federal Clean Air Act, but | ||||||
| 14 | the total payment into the Clean Air Act Permit Fund under this | ||||||
| 15 | Act and the Use Tax Act shall not exceed $2,000,000 in any | ||||||
| 16 | fiscal year. | ||||||
| 17 | Beginning July 1, 2013, each month the Department shall | ||||||
| 18 | pay into the Underground Storage Tank Fund from the proceeds | ||||||
| 19 | collected under this Act, the Use Tax Act, the Service Use Tax | ||||||
| 20 | Act, and the Service Occupation Tax Act an amount equal to the | ||||||
| 21 | average monthly deficit in the Underground Storage Tank Fund | ||||||
| 22 | during the prior year, as certified annually by the Illinois | ||||||
| 23 | Environmental Protection Agency, but the total payment into | ||||||
| 24 | the Underground Storage Tank Fund under this Act, the Use Tax | ||||||
| 25 | Act, the Service Use Tax Act, and the Service Occupation Tax | ||||||
| 26 | Act shall not exceed $18,000,000 in any State fiscal year. As | ||||||
| |||||||
| |||||||
| 1 | used in this paragraph, the "average monthly deficit" shall be | ||||||
| 2 | equal to the difference between the average monthly claims for | ||||||
| 3 | payment by the fund and the average monthly revenues deposited | ||||||
| 4 | into the fund, excluding payments made pursuant to this | ||||||
| 5 | paragraph. | ||||||
| 6 | Beginning July 1, 2015, of the remainder of the moneys | ||||||
| 7 | received by the Department under the Use Tax Act, the Service | ||||||
| 8 | Use Tax Act, the Service Occupation Tax Act, and this Act, each | ||||||
| 9 | month the Department shall deposit $500,000 into the State | ||||||
| 10 | Crime Laboratory Fund. | ||||||
| 11 | Of the remainder of the moneys received by the Department | ||||||
| 12 | pursuant to this Act, (a) 1.75% thereof shall be paid into the | ||||||
| 13 | Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on | ||||||
| 14 | and after July 1, 1989, 3.8% thereof shall be paid into the | ||||||
| 15 | Build Illinois Fund; provided, however, that if in any fiscal | ||||||
| 16 | year the sum of (1) the aggregate of 2.2% or 3.8%, as the case | ||||||
| 17 | may be, of the moneys received by the Department and required | ||||||
| 18 | to be paid into the Build Illinois Fund pursuant to this Act, | ||||||
| 19 | Section 9 of the Use Tax Act, Section 9 of the Service Use Tax | ||||||
| 20 | Act, and Section 9 of the Service Occupation Tax Act, such Acts | ||||||
| 21 | being hereinafter called the "Tax Acts" and such aggregate of | ||||||
| 22 | 2.2% or 3.8%, as the case may be, of moneys being hereinafter | ||||||
| 23 | called the "Tax Act Amount", and (2) the amount transferred to | ||||||
| 24 | the Build Illinois Fund from the State and Local Sales Tax | ||||||
| 25 | Reform Fund shall be less than the Annual Specified Amount (as | ||||||
| 26 | hereinafter defined), an amount equal to the difference shall | ||||||
| ||||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
| 1 | be immediately paid into the Build Illinois Fund from other | |||||||||||||||||||||||||||||||||||||
| 2 | moneys received by the Department pursuant to the Tax Acts; | |||||||||||||||||||||||||||||||||||||
| 3 | the "Annual Specified Amount" means the amounts specified | |||||||||||||||||||||||||||||||||||||
| 4 | below for fiscal years 1986 through 1993: | |||||||||||||||||||||||||||||||||||||
| ||||||||||||||||||||||||||||||||||||||
| 14 | and means the Certified Annual Debt Service Requirement (as | |||||||||||||||||||||||||||||||||||||
| 15 | defined in Section 13 of the Build Illinois Bond Act) or the | |||||||||||||||||||||||||||||||||||||
| 16 | Tax Act Amount, whichever is greater, for fiscal year 1994 and | |||||||||||||||||||||||||||||||||||||
| 17 | each fiscal year thereafter; and further provided, that if on | |||||||||||||||||||||||||||||||||||||
| 18 | the last business day of any month the sum of (1) the Tax Act | |||||||||||||||||||||||||||||||||||||
| 19 | Amount required to be deposited into the Build Illinois Bond | |||||||||||||||||||||||||||||||||||||
| 20 | Account in the Build Illinois Fund during such month and (2) | |||||||||||||||||||||||||||||||||||||
| 21 | the amount transferred to the Build Illinois Fund from the | |||||||||||||||||||||||||||||||||||||
| 22 | State and Local Sales Tax Reform Fund shall have been less than | |||||||||||||||||||||||||||||||||||||
| 23 | 1/12 of the Annual Specified Amount, an amount equal to the | |||||||||||||||||||||||||||||||||||||
| 24 | difference shall be immediately paid into the Build Illinois | |||||||||||||||||||||||||||||||||||||
| 25 | Fund from other moneys received by the Department pursuant to | |||||||||||||||||||||||||||||||||||||
| 26 | the Tax Acts; and, further provided, that in no event shall the | |||||||||||||||||||||||||||||||||||||
| |||||||
| |||||||
| 1 | payments required under the preceding proviso result in | ||||||
| 2 | aggregate payments into the Build Illinois Fund pursuant to | ||||||
| 3 | this clause (b) for any fiscal year in excess of the greater of | ||||||
| 4 | (i) the Tax Act Amount or (ii) the Annual Specified Amount for | ||||||
| 5 | such fiscal year. The amounts payable into the Build Illinois | ||||||
| 6 | Fund under clause (b) of the first sentence in this paragraph | ||||||
| 7 | shall be payable only until such time as the aggregate amount | ||||||
| 8 | on deposit under each trust indenture securing Bonds issued | ||||||
| 9 | and outstanding pursuant to the Build Illinois Bond Act is | ||||||
| 10 | sufficient, taking into account any future investment income, | ||||||
| 11 | to fully provide, in accordance with such indenture, for the | ||||||
| 12 | defeasance of or the payment of the principal of, premium, if | ||||||
| 13 | any, and interest on the Bonds secured by such indenture and on | ||||||
| 14 | any Bonds expected to be issued thereafter and all fees and | ||||||
| 15 | costs payable with respect thereto, all as certified by the | ||||||
| 16 | Director of the Bureau of the Budget (now Governor's Office of | ||||||
| 17 | Management and Budget). If on the last business day of any | ||||||
| 18 | month in which Bonds are outstanding pursuant to the Build | ||||||
| 19 | Illinois Bond Act, the aggregate of moneys deposited in the | ||||||
| 20 | Build Illinois Bond Account in the Build Illinois Fund in such | ||||||
| 21 | month shall be less than the amount required to be transferred | ||||||
| 22 | in such month from the Build Illinois Bond Account to the Build | ||||||
| 23 | Illinois Bond Retirement and Interest Fund pursuant to Section | ||||||
| 24 | 13 of the Build Illinois Bond Act, an amount equal to such | ||||||
| 25 | deficiency shall be immediately paid from other moneys | ||||||
| 26 | received by the Department pursuant to the Tax Acts to the | ||||||
| ||||||||||||||||||||||
| ||||||||||||||||||||||
| 1 | Build Illinois Fund; provided, however, that any amounts paid | |||||||||||||||||||||
| 2 | to the Build Illinois Fund in any fiscal year pursuant to this | |||||||||||||||||||||
| 3 | sentence shall be deemed to constitute payments pursuant to | |||||||||||||||||||||
| 4 | clause (b) of the first sentence of this paragraph and shall | |||||||||||||||||||||
| 5 | reduce the amount otherwise payable for such fiscal year | |||||||||||||||||||||
| 6 | pursuant to that clause (b). The moneys received by the | |||||||||||||||||||||
| 7 | Department pursuant to this Act and required to be deposited | |||||||||||||||||||||
| 8 | into the Build Illinois Fund are subject to the pledge, claim | |||||||||||||||||||||
| 9 | and charge set forth in Section 12 of the Build Illinois Bond | |||||||||||||||||||||
| 10 | Act. | |||||||||||||||||||||
| 11 | Subject to payment of amounts into the Build Illinois Fund | |||||||||||||||||||||
| 12 | as provided in the preceding paragraph or in any amendment | |||||||||||||||||||||
| 13 | thereto hereafter enacted, the following specified monthly | |||||||||||||||||||||
| 14 | installment of the amount requested in the certificate of the | |||||||||||||||||||||
| 15 | Chairman of the Metropolitan Pier and Exposition Authority | |||||||||||||||||||||
| 16 | provided under Section 8.25f of the State Finance Act, but not | |||||||||||||||||||||
| 17 | in excess of sums designated as "Total Deposit", shall be | |||||||||||||||||||||
| 18 | deposited in the aggregate from collections under Section 9 of | |||||||||||||||||||||
| 19 | the Use Tax Act, Section 9 of the Service Use Tax Act, Section | |||||||||||||||||||||
| 20 | 9 of the Service Occupation Tax Act, and Section 3 of the | |||||||||||||||||||||
| 21 | Retailers' Occupation Tax Act into the McCormick Place | |||||||||||||||||||||
| 22 | Expansion Project Fund in the specified fiscal years. | |||||||||||||||||||||
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| 24 | Beginning July 20, 1993 and in each month of each fiscal | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 25 | year thereafter, one-eighth of the amount requested in the | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 26 | certificate of the Chairman of the Metropolitan Pier and | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||
| |||||||
| 1 | Exposition Authority for that fiscal year, less the amount | ||||||
| 2 | deposited into the McCormick Place Expansion Project Fund by | ||||||
| 3 | the State Treasurer in the respective month under subsection | ||||||
| 4 | (g) of Section 13 of the Metropolitan Pier and Exposition | ||||||
| 5 | Authority Act, plus cumulative deficiencies in the deposits | ||||||
| 6 | required under this Section for previous months and years, | ||||||
| 7 | shall be deposited into the McCormick Place Expansion Project | ||||||
| 8 | Fund, until the full amount requested for the fiscal year, but | ||||||
| 9 | not in excess of the amount specified above as "Total | ||||||
| 10 | Deposit", has been deposited. | ||||||
| 11 | Subject to payment of amounts into the Capital Projects | ||||||
| 12 | Fund, the Clean Air Act Permit Fund, the Build Illinois Fund, | ||||||
| 13 | and the McCormick Place Expansion Project Fund pursuant to the | ||||||
| 14 | preceding paragraphs or in any amendments thereto hereafter | ||||||
| 15 | enacted, for aviation fuel sold on or after December 1, 2019, | ||||||
| 16 | the Department shall each month deposit into the Aviation Fuel | ||||||
| 17 | Sales Tax Refund Fund an amount estimated by the Department to | ||||||
| 18 | be required for refunds of the 80% portion of the tax on | ||||||
| 19 | aviation fuel under this Act. The Department shall only | ||||||
| 20 | deposit moneys into the Aviation Fuel Sales Tax Refund Fund | ||||||
| 21 | under this paragraph for so long as the revenue use | ||||||
| 22 | requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are | ||||||
| 23 | binding on the State. | ||||||
| 24 | Subject to payment of amounts into the Build Illinois Fund | ||||||
| 25 | and the McCormick Place Expansion Project Fund pursuant to the | ||||||
| 26 | preceding paragraphs or in any amendments thereto hereafter | ||||||
| |||||||
| |||||||
| 1 | enacted, beginning July 1, 1993 and ending on September 30, | ||||||
| 2 | 2013, the Department shall each month pay into the Illinois | ||||||
| 3 | Tax Increment Fund 0.27% of 80% of the net revenue realized for | ||||||
| 4 | the preceding month from the 6.25% general rate on the selling | ||||||
| 5 | price of tangible personal property. | ||||||
| 6 | Subject to payment of amounts into the Build Illinois | ||||||
| 7 | Fund, the McCormick Place Expansion Project Fund, and the | ||||||
| 8 | Illinois Tax Increment Fund pursuant to the preceding | ||||||
| 9 | paragraphs or in any amendments to this Section hereafter | ||||||
| 10 | enacted, beginning on the first day of the first calendar | ||||||
| 11 | month to occur on or after August 26, 2014 (the effective date | ||||||
| 12 | of Public Act 98-1098), each month, from the collections made | ||||||
| 13 | under Section 9 of the Use Tax Act, Section 9 of the Service | ||||||
| 14 | Use Tax Act, Section 9 of the Service Occupation Tax Act, and | ||||||
| 15 | Section 3 of the Retailers' Occupation Tax Act, the Department | ||||||
| 16 | shall pay into the Tax Compliance and Administration Fund, to | ||||||
| 17 | be used, subject to appropriation, to fund additional auditors | ||||||
| 18 | and compliance personnel at the Department of Revenue, an | ||||||
| 19 | amount equal to 1/12 of 5% of 80% of the cash receipts | ||||||
| 20 | collected during the preceding fiscal year by the Audit Bureau | ||||||
| 21 | of the Department under the Use Tax Act, the Service Use Tax | ||||||
| 22 | Act, the Service Occupation Tax Act, the Retailers' Occupation | ||||||
| 23 | Tax Act, and associated local occupation and use taxes | ||||||
| 24 | administered by the Department. | ||||||
| 25 | Subject to payments of amounts into the Build Illinois | ||||||
| 26 | Fund, the McCormick Place Expansion Project Fund, the Illinois | ||||||
| |||||||
| |||||||
| 1 | Tax Increment Fund, the Energy Infrastructure Fund, and the | ||||||
| 2 | Tax Compliance and Administration Fund as provided in this | ||||||
| 3 | Section, beginning on July 1, 2018 the Department shall pay | ||||||
| 4 | each month into the Downstate Public Transportation Fund the | ||||||
| 5 | moneys required to be so paid under Section 2-3 of the | ||||||
| 6 | Downstate Public Transportation Act. | ||||||
| 7 | Subject to successful execution and delivery of a | ||||||
| 8 | public-private agreement between the public agency and private | ||||||
| 9 | entity and completion of the civic build, beginning on July 1, | ||||||
| 10 | 2023, of the remainder of the moneys received by the | ||||||
| 11 | Department under the Use Tax Act, the Service Use Tax Act, the | ||||||
| 12 | Service Occupation Tax Act, and this Act, the Department shall | ||||||
| 13 | deposit the following specified deposits in the aggregate from | ||||||
| 14 | collections under the Use Tax Act, the Service Use Tax Act, the | ||||||
| 15 | Service Occupation Tax Act, and the Retailers' Occupation Tax | ||||||
| 16 | Act, as required under Section 8.25g of the State Finance Act | ||||||
| 17 | for distribution consistent with the Public-Private | ||||||
| 18 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
| 19 | The moneys received by the Department pursuant to this Act and | ||||||
| 20 | required to be deposited into the Civic and Transit | ||||||
| 21 | Infrastructure Fund are subject to the pledge, claim and | ||||||
| 22 | charge set forth in Section 25-55 of the Public-Private | ||||||
| 23 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
| 24 | As used in this paragraph, "civic build", "private entity", | ||||||
| 25 | "public-private agreement", and "public agency" have the | ||||||
| 26 | meanings provided in Section 25-10 of the Public-Private | ||||||
| |||||||
| |||||||
| 1 | Partnership for Civic and Transit Infrastructure Project Act. | ||||||
| 2 | Fiscal Year.............................Total Deposit | ||||||
| 3 | 2024.....................................$200,000,000 | ||||||
| 4 | 2025....................................$206,000,000 | ||||||
| 5 | 2026....................................$212,200,000 | ||||||
| 6 | 2027....................................$218,500,000 | ||||||
| 7 | 2028....................................$225,100,000 | ||||||
| 8 | 2029....................................$288,700,000 | ||||||
| 9 | 2030....................................$298,900,000 | ||||||
| 10 | 2031....................................$309,300,000 | ||||||
| 11 | 2032....................................$320,100,000 | ||||||
| 12 | 2033....................................$331,200,000 | ||||||
| 13 | 2034....................................$341,200,000 | ||||||
| 14 | 2035....................................$351,400,000 | ||||||
| 15 | 2036....................................$361,900,000 | ||||||
| 16 | 2037....................................$372,800,000 | ||||||
| 17 | 2038....................................$384,000,000 | ||||||
| 18 | 2039....................................$395,500,000 | ||||||
| 19 | 2040....................................$407,400,000 | ||||||
| 20 | 2041....................................$419,600,000 | ||||||
| 21 | 2042....................................$432,200,000 | ||||||
| 22 | 2043....................................$445,100,000 | ||||||
| 23 | Beginning July 1, 2021 and until July 1, 2022, subject to | ||||||
| 24 | the payment of amounts into the County and Mass Transit | ||||||
| 25 | District Fund, the Local Government Tax Fund, the Build | ||||||
| 26 | Illinois Fund, the McCormick Place Expansion Project Fund, the | ||||||
| |||||||
| |||||||
| 1 | Illinois Tax Increment Fund, and the Tax Compliance and | ||||||
| 2 | Administration Fund as provided in this Section, the | ||||||
| 3 | Department shall pay each month into the Road Fund the amount | ||||||
| 4 | estimated to represent 16% of the net revenue realized from | ||||||
| 5 | the taxes imposed on motor fuel and gasohol. Beginning July 1, | ||||||
| 6 | 2022 and until July 1, 2023, subject to the payment of amounts | ||||||
| 7 | into the County and Mass Transit District Fund, the Local | ||||||
| 8 | Government Tax Fund, the Build Illinois Fund, the McCormick | ||||||
| 9 | Place Expansion Project Fund, the Illinois Tax Increment Fund, | ||||||
| 10 | and the Tax Compliance and Administration Fund as provided in | ||||||
| 11 | this Section, the Department shall pay each month into the | ||||||
| 12 | Road Fund the amount estimated to represent 32% of the net | ||||||
| 13 | revenue realized from the taxes imposed on motor fuel and | ||||||
| 14 | gasohol. Beginning July 1, 2023 and until July 1, 2024, | ||||||
| 15 | subject to the payment of amounts into the County and Mass | ||||||
| 16 | Transit District Fund, the Local Government Tax Fund, the | ||||||
| 17 | Build Illinois Fund, the McCormick Place Expansion Project | ||||||
| 18 | Fund, the Illinois Tax Increment Fund, and the Tax Compliance | ||||||
| 19 | and Administration Fund as provided in this Section, the | ||||||
| 20 | Department shall pay each month into the Road Fund the amount | ||||||
| 21 | estimated to represent 48% of the net revenue realized from | ||||||
| 22 | the taxes imposed on motor fuel and gasohol. Beginning July 1, | ||||||
| 23 | 2024 and until July 1, 2025, subject to the payment of amounts | ||||||
| 24 | into the County and Mass Transit District Fund, the Local | ||||||
| 25 | Government Tax Fund, the Build Illinois Fund, the McCormick | ||||||
| 26 | Place Expansion Project Fund, the Illinois Tax Increment Fund, | ||||||
| |||||||
| |||||||
| 1 | and the Tax Compliance and Administration Fund as provided in | ||||||
| 2 | this Section, the Department shall pay each month into the | ||||||
| 3 | Road Fund the amount estimated to represent 64% of the net | ||||||
| 4 | revenue realized from the taxes imposed on motor fuel and | ||||||
| 5 | gasohol. Beginning on July 1, 2025, subject to the payment of | ||||||
| 6 | amounts into the County and Mass Transit District Fund, the | ||||||
| 7 | Local Government Tax Fund, the Build Illinois Fund, the | ||||||
| 8 | McCormick Place Expansion Project Fund, the Illinois Tax | ||||||
| 9 | Increment Fund, and the Tax Compliance and Administration Fund | ||||||
| 10 | as provided in this Section, the Department shall pay each | ||||||
| 11 | month into the Road Fund the amount estimated to represent 80% | ||||||
| 12 | of the net revenue realized from the taxes imposed on motor | ||||||
| 13 | fuel and gasohol. As used in this paragraph "motor fuel" has | ||||||
| 14 | the meaning given to that term in Section 1.1 of the Motor Fuel | ||||||
| 15 | Tax Law, and "gasohol" has the meaning given to that term in | ||||||
| 16 | Section 3-40 of the Use Tax Act. | ||||||
| 17 | Of the remainder of the moneys received by the Department | ||||||
| 18 | pursuant to this Act, 75% thereof shall be paid into the State | ||||||
| 19 | treasury and 25% shall be reserved in a special account and | ||||||
| 20 | used only for the transfer to the Common School Fund as part of | ||||||
| 21 | the monthly transfer from the General Revenue Fund in | ||||||
| 22 | accordance with Section 8a of the State Finance Act. | ||||||
| 23 | The Department may, upon separate written notice to a | ||||||
| 24 | taxpayer, require the taxpayer to prepare and file with the | ||||||
| 25 | Department on a form prescribed by the Department within not | ||||||
| 26 | less than 60 days after receipt of the notice an annual | ||||||
| |||||||
| |||||||
| 1 | information return for the tax year specified in the notice. | ||||||
| 2 | Such annual return to the Department shall include a statement | ||||||
| 3 | of gross receipts as shown by the retailer's last federal | ||||||
| 4 | Federal income tax return. If the total receipts of the | ||||||
| 5 | business as reported in the federal Federal income tax return | ||||||
| 6 | do not agree with the gross receipts reported to the | ||||||
| 7 | Department of Revenue for the same period, the retailer shall | ||||||
| 8 | attach to his annual return a schedule showing a | ||||||
| 9 | reconciliation of the 2 amounts and the reasons for the | ||||||
| 10 | difference. The retailer's annual return to the Department | ||||||
| 11 | shall also disclose the cost of goods sold by the retailer | ||||||
| 12 | during the year covered by such return, opening and closing | ||||||
| 13 | inventories of such goods for such year, costs of goods used | ||||||
| 14 | from stock or taken from stock and given away by the retailer | ||||||
| 15 | during such year, payroll information of the retailer's | ||||||
| 16 | business during such year and any additional reasonable | ||||||
| 17 | information which the Department deems would be helpful in | ||||||
| 18 | determining the accuracy of the monthly, quarterly, or annual | ||||||
| 19 | returns filed by such retailer as provided for in this | ||||||
| 20 | Section. | ||||||
| 21 | If the annual information return required by this Section | ||||||
| 22 | is not filed when and as required, the taxpayer shall be liable | ||||||
| 23 | as follows: | ||||||
| 24 | (i) Until January 1, 1994, the taxpayer shall be | ||||||
| 25 | liable for a penalty equal to 1/6 of 1% of the tax due from | ||||||
| 26 | such taxpayer under this Act during the period to be | ||||||
| |||||||
| |||||||
| 1 | covered by the annual return for each month or fraction of | ||||||
| 2 | a month until such return is filed as required, the | ||||||
| 3 | penalty to be assessed and collected in the same manner as | ||||||
| 4 | any other penalty provided for in this Act. | ||||||
| 5 | (ii) On and after January 1, 1994, the taxpayer shall | ||||||
| 6 | be liable for a penalty as described in Section 3-4 of the | ||||||
| 7 | Uniform Penalty and Interest Act. | ||||||
| 8 | The chief executive officer, proprietor, owner, or highest | ||||||
| 9 | ranking manager shall sign the annual return to certify the | ||||||
| 10 | accuracy of the information contained therein. Any person who | ||||||
| 11 | willfully signs the annual return containing false or | ||||||
| 12 | inaccurate information shall be guilty of perjury and punished | ||||||
| 13 | accordingly. The annual return form prescribed by the | ||||||
| 14 | Department shall include a warning that the person signing the | ||||||
| 15 | return may be liable for perjury. | ||||||
| 16 | The provisions of this Section concerning the filing of an | ||||||
| 17 | annual information return do not apply to a retailer who is not | ||||||
| 18 | required to file an income tax return with the United States | ||||||
| 19 | Government. | ||||||
| 20 | As soon as possible after the first day of each month, upon | ||||||
| 21 | certification of the Department of Revenue, the Comptroller | ||||||
| 22 | shall order transferred and the Treasurer shall transfer from | ||||||
| 23 | the General Revenue Fund to the Motor Fuel Tax Fund an amount | ||||||
| 24 | equal to 1.7% of 80% of the net revenue realized under this Act | ||||||
| 25 | for the second preceding month. Beginning April 1, 2000, this | ||||||
| 26 | transfer is no longer required and shall not be made. | ||||||
| |||||||
| |||||||
| 1 | Net revenue realized for a month shall be the revenue | ||||||
| 2 | collected by the State pursuant to this Act, less the amount | ||||||
| 3 | paid out during that month as refunds to taxpayers for | ||||||
| 4 | overpayment of liability. | ||||||
| 5 | For greater simplicity of administration, manufacturers, | ||||||
| 6 | importers and wholesalers whose products are sold at retail in | ||||||
| 7 | Illinois by numerous retailers, and who wish to do so, may | ||||||
| 8 | assume the responsibility for accounting and paying to the | ||||||
| 9 | Department all tax accruing under this Act with respect to | ||||||
| 10 | such sales, if the retailers who are affected do not make | ||||||
| 11 | written objection to the Department to this arrangement. | ||||||
| 12 | Any person who promotes, organizes, or provides retail | ||||||
| 13 | selling space for concessionaires or other types of sellers at | ||||||
| 14 | the Illinois State Fair, DuQuoin State Fair, county fairs, | ||||||
| 15 | local fairs, art shows, flea markets, and similar exhibitions | ||||||
| 16 | or events, including any transient merchant as defined by | ||||||
| 17 | Section 2 of the Transient Merchant Act of 1987, is required to | ||||||
| 18 | file a report with the Department providing the name of the | ||||||
| 19 | merchant's business, the name of the person or persons engaged | ||||||
| 20 | in merchant's business, the permanent address and Illinois | ||||||
| 21 | Retailers Occupation Tax Registration Number of the merchant, | ||||||
| 22 | the dates and location of the event, and other reasonable | ||||||
| 23 | information that the Department may require. The report must | ||||||
| 24 | be filed not later than the 20th day of the month next | ||||||
| 25 | following the month during which the event with retail sales | ||||||
| 26 | was held. Any person who fails to file a report required by | ||||||
| |||||||
| |||||||
| 1 | this Section commits a business offense and is subject to a | ||||||
| 2 | fine not to exceed $250. | ||||||
| 3 | Any person engaged in the business of selling tangible | ||||||
| 4 | personal property at retail as a concessionaire or other type | ||||||
| 5 | of seller at the Illinois State Fair, county fairs, art shows, | ||||||
| 6 | flea markets, and similar exhibitions or events, or any | ||||||
| 7 | transient merchants, as defined by Section 2 of the Transient | ||||||
| 8 | Merchant Act of 1987, may be required to make a daily report of | ||||||
| 9 | the amount of such sales to the Department and to make a daily | ||||||
| 10 | payment of the full amount of tax due. The Department shall | ||||||
| 11 | impose this requirement when it finds that there is a | ||||||
| 12 | significant risk of loss of revenue to the State at such an | ||||||
| 13 | exhibition or event. Such a finding shall be based on evidence | ||||||
| 14 | that a substantial number of concessionaires or other sellers | ||||||
| 15 | who are not residents of Illinois will be engaging in the | ||||||
| 16 | business of selling tangible personal property at retail at | ||||||
| 17 | the exhibition or event, or other evidence of a significant | ||||||
| 18 | risk of loss of revenue to the State. The Department shall | ||||||
| 19 | notify concessionaires and other sellers affected by the | ||||||
| 20 | imposition of this requirement. In the absence of notification | ||||||
| 21 | by the Department, the concessionaires and other sellers shall | ||||||
| 22 | file their returns as otherwise required in this Section. | ||||||
| 23 | (Source: P.A. 102-634, eff. 8-27-21; 102-700, Article 60, | ||||||
| 24 | Section 60-30, eff. 4-19-22; 102-700, Article 65, Section | ||||||
| 25 | 65-10, eff. 4-19-22; 102-813, eff. 5-13-22; 102-1019, eff. | ||||||
| 26 | 1-1-23; 103-9, eff. 6-7-23; 103-154, eff. 6-30-23; 103-363, | ||||||
| |||||||
| |||||||
| 1 | eff. 7-28-23; revised 9-27-23.)
| ||||||
| 2 | Section 110-25. The Prepaid Wireless 9-1-1 Surcharge Act | ||||||
| 3 | is amended by changing Section 20 as follows:
| ||||||
| 4 | (50 ILCS 753/20) | ||||||
| 5 | Sec. 20. Administration of prepaid wireless 9-1-1 | ||||||
| 6 | surcharge. | ||||||
| 7 | (a) In the administration and enforcement of this Act, the | ||||||
| 8 | provisions of Sections 2a, 2b, 2c, 3, 4, 5, 5a, 5b, 5c, 5d, 5e, | ||||||
| 9 | 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 7, 8, 9, 10, 11, and 12 of the | ||||||
| 10 | Retailers' Occupation Tax Act that are not inconsistent with | ||||||
| 11 | this Act, and Section 3-7 of the Uniform Penalty and Interest | ||||||
| 12 | Act shall apply, as far as practicable, to the subject matter | ||||||
| 13 | of this Act to the same extent as if those provisions were | ||||||
| 14 | included in this Act. References to "taxes" in these | ||||||
| 15 | incorporated Sections shall be construed to apply to the | ||||||
| 16 | administration, payment, and remittance of all surcharges | ||||||
| 17 | under this Act. The Department shall establish registration | ||||||
| 18 | and payment procedures that substantially coincide with the | ||||||
| 19 | registration and payment procedures that apply to the | ||||||
| 20 | Retailers' Occupation Tax Act. | ||||||
| 21 | (b) A seller shall be permitted to deduct and retain 3% of | ||||||
| 22 | prepaid wireless 9-1-1 surcharges that are collected by the | ||||||
| 23 | seller from consumers and that are remitted and timely filed | ||||||
| 24 | with the Department. Beginning with returns due on or after | ||||||
| |||||||
| |||||||
| 1 | January 1, 2025, the 3% deduction allowed under this | ||||||
| 2 | subsection, including any local surcharge administered by the | ||||||
| 3 | Department and reported on the same return, shall not exceed | ||||||
| 4 | $1,000 per month. Beginning January 1, 2018, the seller is | ||||||
| 5 | allowed to deduct and retain a portion of the prepaid wireless | ||||||
| 6 | 9-1-1 surcharges as authorized by this subsection only if the | ||||||
| 7 | return is filed electronically as provided in Section 3 of the | ||||||
| 8 | Retailers' Occupation Tax Act. Sellers who demonstrate that | ||||||
| 9 | they do not have access to the Internet or demonstrate | ||||||
| 10 | hardship in filing electronically may petition the Department | ||||||
| 11 | to waive the electronic filing requirement. | ||||||
| 12 | (c) Other than the amounts for deposit into the Municipal | ||||||
| 13 | Wireless Service Emergency Fund, the Department shall pay to | ||||||
| 14 | the State Treasurer all prepaid wireless E911 charges, | ||||||
| 15 | penalties, and interest collected under this Act for deposit | ||||||
| 16 | into the Statewide 9-1-1 Fund. On or before the 25th day of | ||||||
| 17 | each calendar month, the Department shall prepare and certify | ||||||
| 18 | to the Comptroller the amount available to the Illinois State | ||||||
| 19 | Police for distribution out of the Statewide 9-1-1 Fund. The | ||||||
| 20 | amount certified shall be the amount (not including credit | ||||||
| 21 | memoranda) collected during the second preceding calendar | ||||||
| 22 | month by the Department plus an amount the Department | ||||||
| 23 | determines is necessary to offset any amounts which were | ||||||
| 24 | erroneously paid to a different taxing body. The amount paid | ||||||
| 25 | to the Statewide 9-1-1 Fund shall not include any amount equal | ||||||
| 26 | to the amount of refunds made during the second preceding | ||||||
| |||||||
| |||||||
| 1 | calendar month by the Department of Revenue to retailers under | ||||||
| 2 | this Act or any amount that the Department determines is | ||||||
| 3 | necessary to offset any amounts which were payable to a | ||||||
| 4 | different taxing body but were erroneously paid to the | ||||||
| 5 | Statewide 9-1-1 Fund. The Illinois State Police shall | ||||||
| 6 | distribute the funds in accordance with Section 30 of the | ||||||
| 7 | Emergency Telephone Safety Act. The Department may deduct an | ||||||
| 8 | amount, not to exceed 2% of remitted charges, to be | ||||||
| 9 | transferred into the Tax Compliance and Administration Fund to | ||||||
| 10 | reimburse the Department for its direct costs of administering | ||||||
| 11 | the collection and remittance of prepaid wireless 9-1-1 | ||||||
| 12 | surcharges. | ||||||
| 13 | (d) The Department shall administer the collection of all | ||||||
| 14 | 9-1-1 surcharges and may adopt and enforce reasonable rules | ||||||
| 15 | relating to the administration and enforcement of the | ||||||
| 16 | provisions of this Act as may be deemed expedient. The | ||||||
| 17 | Department shall require all surcharges collected under this | ||||||
| 18 | Act to be reported on existing forms or combined forms, | ||||||
| 19 | including, but not limited to, Form ST-1. Any overpayments | ||||||
| 20 | received by the Department for liabilities reported on | ||||||
| 21 | existing or combined returns shall be applied as an | ||||||
| 22 | overpayment of retailers' occupation tax, use tax, service | ||||||
| 23 | occupation tax, or service use tax liability. | ||||||
| 24 | (e) If a home rule municipality having a population in | ||||||
| 25 | excess of 500,000 as of the effective date of this amendatory | ||||||
| 26 | Act of the 97th General Assembly imposes an E911 surcharge | ||||||
| |||||||
| |||||||
| 1 | under subsection (a-5) of Section 15 of this Act, then the | ||||||
| 2 | Department shall pay to the State Treasurer all prepaid | ||||||
| 3 | wireless E911 charges, penalties, and interest collected for | ||||||
| 4 | deposit into the Municipal Wireless Service Emergency Fund. | ||||||
| 5 | All deposits into the Municipal Wireless Service Emergency | ||||||
| 6 | Fund shall be held by the State Treasurer as ex officio | ||||||
| 7 | custodian apart from all public moneys or funds of this State. | ||||||
| 8 | Any interest attributable to moneys in the Fund must be | ||||||
| 9 | deposited into the Fund. Moneys in the Municipal Wireless | ||||||
| 10 | Service Emergency Fund are not subject to appropriation. On or | ||||||
| 11 | before the 25th day of each calendar month, the Department | ||||||
| 12 | shall prepare and certify to the Comptroller the amount | ||||||
| 13 | available for disbursement to the home rule municipality out | ||||||
| 14 | of the Municipal Wireless Service Emergency Fund. The amount | ||||||
| 15 | to be paid to the Municipal Wireless Service Emergency Fund | ||||||
| 16 | shall be the amount (not including credit memoranda) collected | ||||||
| 17 | during the second preceding calendar month by the Department | ||||||
| 18 | plus an amount the Department determines is necessary to | ||||||
| 19 | offset any amounts which were erroneously paid to a different | ||||||
| 20 | taxing body. The amount paid to the Municipal Wireless Service | ||||||
| 21 | Emergency Fund shall not include any amount equal to the | ||||||
| 22 | amount of refunds made during the second preceding calendar | ||||||
| 23 | month by the Department to retailers under this Act or any | ||||||
| 24 | amount that the Department determines is necessary to offset | ||||||
| 25 | any amounts which were payable to a different taxing body but | ||||||
| 26 | were erroneously paid to the Municipal Wireless Service | ||||||
| |||||||
| |||||||
| 1 | Emergency Fund. Within 10 days after receipt by the | ||||||
| 2 | Comptroller of the certification provided for in this | ||||||
| 3 | subsection, the Comptroller shall cause the orders to be drawn | ||||||
| 4 | for the respective amounts in accordance with the directions | ||||||
| 5 | in the certification. The Department may deduct an amount, not | ||||||
| 6 | to exceed 2% of remitted charges, to be transferred into the | ||||||
| 7 | Tax Compliance and Administration Fund to reimburse the | ||||||
| 8 | Department for its direct costs of administering the | ||||||
| 9 | collection and remittance of prepaid wireless 9-1-1 | ||||||
| 10 | surcharges. | ||||||
| 11 | (Source: P.A. 102-538, eff. 8-20-21.)
| ||||||
| 12 | ARTICLE 115. | ||||||
| 13 | Section 115-5. The Business Corporation Act of 1983 is | ||||||
| 14 | amended by changing Sections 15.35 and 15.65 as follows:
| ||||||
| 15 | (805 ILCS 5/15.35) (from Ch. 32, par. 15.35) | ||||||
| 16 | (Text of Section from P.A. 102-16 and 103-8) | ||||||
| 17 | Sec. 15.35. Franchise taxes payable by domestic | ||||||
| 18 | corporations. For the privilege of exercising its franchises | ||||||
| 19 | in this State, each domestic corporation shall pay to the | ||||||
| 20 | Secretary of State the following franchise taxes, computed on | ||||||
| 21 | the basis, at the rates and for the periods prescribed in this | ||||||
| 22 | Act: | ||||||
| 23 | (a) An initial franchise tax at the time of filing its | ||||||
| |||||||
| |||||||
| 1 | first report of issuance of shares. | ||||||
| 2 | (b) An additional franchise tax at the time of filing | ||||||
| 3 | (1) a report of the issuance of additional shares, or (2) a | ||||||
| 4 | report of an increase in paid-in capital without the | ||||||
| 5 | issuance of shares, or (3) an amendment to the articles of | ||||||
| 6 | incorporation or a report of cumulative changes in paid-in | ||||||
| 7 | capital, whenever any amendment or such report discloses | ||||||
| 8 | an increase in its paid-in capital over the amount thereof | ||||||
| 9 | last reported in any document, other than an annual | ||||||
| 10 | report, interim annual report or final transition annual | ||||||
| 11 | report required by this Act to be filed in the office of | ||||||
| 12 | the Secretary of State. | ||||||
| 13 | (c) An additional franchise tax at the time of filing | ||||||
| 14 | a report of paid-in capital following a statutory merger | ||||||
| 15 | or consolidation, which discloses that the paid-in capital | ||||||
| 16 | of the surviving or new corporation immediately after the | ||||||
| 17 | merger or consolidation is greater than the sum of the | ||||||
| 18 | paid-in capital of all of the merged or consolidated | ||||||
| 19 | corporations as last reported by them in any documents, | ||||||
| 20 | other than annual reports, required by this Act to be | ||||||
| 21 | filed in the office of the Secretary of State; and in | ||||||
| 22 | addition, the surviving or new corporation shall be liable | ||||||
| 23 | for a further additional franchise tax on the paid-in | ||||||
| 24 | capital of each of the merged or consolidated corporations | ||||||
| 25 | as last reported by them in any document, other than an | ||||||
| 26 | annual report, required by this Act to be filed with the | ||||||
| |||||||
| |||||||
| 1 | Secretary of State from their taxable year end to the next | ||||||
| 2 | succeeding anniversary month or, in the case of a | ||||||
| 3 | corporation which has established an extended filing | ||||||
| 4 | month, the extended filing month of the surviving or new | ||||||
| 5 | corporation; however if the taxable year ends within the | ||||||
| 6 | 2-month period immediately preceding the anniversary month | ||||||
| 7 | or, in the case of a corporation which has established an | ||||||
| 8 | extended filing month, the extended filing month of the | ||||||
| 9 | surviving or new corporation the tax will be computed to | ||||||
| 10 | the anniversary month or, in the case of a corporation | ||||||
| 11 | which has established an extended filing month, the | ||||||
| 12 | extended filing month of the surviving or new corporation | ||||||
| 13 | in the next succeeding calendar year. | ||||||
| 14 | (d) An annual franchise tax payable each year with the | ||||||
| 15 | annual report which the corporation is required by this | ||||||
| 16 | Act to file. | ||||||
| 17 | On or after January 1, 2020 and prior to January 1, 2021, | ||||||
| 18 | the first $30 in liability is exempt from the tax imposed under | ||||||
| 19 | this Section. On or after January 1, 2021, and prior to January | ||||||
| 20 | 1, 2024, the first $1,000 in liability is exempt from the tax | ||||||
| 21 | imposed under this Section. On or after January 1, 2024, and | ||||||
| 22 | before January 1, 2025, the first $5,000 in liability is | ||||||
| 23 | exempt from the tax imposed under this Section. On and after | ||||||
| 24 | January 1, 2025, the first $10,000 in liability is exempt from | ||||||
| 25 | the tax imposed under this Section. | ||||||
| 26 | (Source: P.A. 102-16, eff. 6-17-21; 103-8, eff. 6-7-23.)
| ||||||
| |||||||
| |||||||
| 1 | (Text of Section from P.A. 102-282, 102-558, and 103-8) | ||||||
| 2 | Sec. 15.35. Franchise taxes payable by domestic | ||||||
| 3 | corporations. For the privilege of exercising its franchises | ||||||
| 4 | in this State, each domestic corporation shall pay to the | ||||||
| 5 | Secretary of State the following franchise taxes, computed on | ||||||
| 6 | the basis, at the rates and for the periods prescribed in this | ||||||
| 7 | Act: | ||||||
| 8 | (a) An initial franchise tax at the time of filing its | ||||||
| 9 | first report of issuance of shares. | ||||||
| 10 | (b) An additional franchise tax at the time of filing | ||||||
| 11 | (1) a report of the issuance of additional shares, or (2) a | ||||||
| 12 | report of an increase in paid-in capital without the | ||||||
| 13 | issuance of shares, or (3) an amendment to the articles of | ||||||
| 14 | incorporation or a report of cumulative changes in paid-in | ||||||
| 15 | capital, whenever any amendment or such report discloses | ||||||
| 16 | an increase in its paid-in capital over the amount thereof | ||||||
| 17 | last reported in any document, other than an annual | ||||||
| 18 | report, interim annual report or final transition annual | ||||||
| 19 | report required by this Act to be filed in the office of | ||||||
| 20 | the Secretary of State. | ||||||
| 21 | (c) An additional franchise tax at the time of filing | ||||||
| 22 | a report of paid-in capital following a statutory merger | ||||||
| 23 | or consolidation, which discloses that the paid-in capital | ||||||
| 24 | of the surviving or new corporation immediately after the | ||||||
| 25 | merger or consolidation is greater than the sum of the | ||||||
| |||||||
| |||||||
| 1 | paid-in capital of all of the merged or consolidated | ||||||
| 2 | corporations as last reported by them in any documents, | ||||||
| 3 | other than annual reports, required by this Act to be | ||||||
| 4 | filed in the office of the Secretary of State; and in | ||||||
| 5 | addition, the surviving or new corporation shall be liable | ||||||
| 6 | for a further additional franchise tax on the paid-in | ||||||
| 7 | capital of each of the merged or consolidated corporations | ||||||
| 8 | as last reported by them in any document, other than an | ||||||
| 9 | annual report, required by this Act to be filed with the | ||||||
| 10 | Secretary of State from their taxable year end to the next | ||||||
| 11 | succeeding anniversary month or, in the case of a | ||||||
| 12 | corporation which has established an extended filing | ||||||
| 13 | month, the extended filing month of the surviving or new | ||||||
| 14 | corporation; however if the taxable year ends within the | ||||||
| 15 | 2-month period immediately preceding the anniversary month | ||||||
| 16 | or, in the case of a corporation which has established an | ||||||
| 17 | extended filing month, the extended filing month of the | ||||||
| 18 | surviving or new corporation the tax will be computed to | ||||||
| 19 | the anniversary month or, in the case of a corporation | ||||||
| 20 | which has established an extended filing month, the | ||||||
| 21 | extended filing month of the surviving or new corporation | ||||||
| 22 | in the next succeeding calendar year. | ||||||
| 23 | (d) An annual franchise tax payable each year with the | ||||||
| 24 | annual report which the corporation is required by this | ||||||
| 25 | Act to file. | ||||||
| 26 | On or after January 1, 2020 and prior to January 1, 2021, | ||||||
| |||||||
| |||||||
| 1 | the first $30 in liability is exempt from the tax imposed under | ||||||
| 2 | this Section. On or after January 1, 2021 and prior to January | ||||||
| 3 | 1, 2024, the first $1,000 in liability is exempt from the tax | ||||||
| 4 | imposed under this Section. On or after January 1, 2024, and | ||||||
| 5 | before January 1, 2025, the first $5,000 in liability is | ||||||
| 6 | exempt from the tax imposed under this Section. On and after | ||||||
| 7 | January 1, 2025, the first $10,000 in liability is exempt from | ||||||
| 8 | the tax imposed under this Section. | ||||||
| 9 | (Source: P.A. 102-282, eff. 1-1-22; 102-558, eff. 8-20-21; | ||||||
| 10 | 103-8, eff. 6-7-23.)
| ||||||
| 11 | (805 ILCS 5/15.65) (from Ch. 32, par. 15.65) | ||||||
| 12 | Sec. 15.65. Franchise taxes payable by foreign | ||||||
| 13 | corporations. For the privilege of exercising its authority to | ||||||
| 14 | transact such business in this State as set out in its | ||||||
| 15 | application therefor or any amendment thereto, each foreign | ||||||
| 16 | corporation shall pay to the Secretary of State the following | ||||||
| 17 | franchise taxes, computed on the basis, at the rates and for | ||||||
| 18 | the periods prescribed in this Act: | ||||||
| 19 | (a) An initial franchise tax at the time of filing its | ||||||
| 20 | application for authority to transact business in this | ||||||
| 21 | State. | ||||||
| 22 | (b) An additional franchise tax at the time of filing | ||||||
| 23 | (1) a report of the issuance of additional shares, or (2) a | ||||||
| 24 | report of an increase in paid-in capital without the | ||||||
| 25 | issuance of shares, or (3) a report of cumulative changes | ||||||
| |||||||
| |||||||
| 1 | in paid-in capital or a report of an exchange or | ||||||
| 2 | reclassification of shares, whenever any such report | ||||||
| 3 | discloses an increase in its paid-in capital over the | ||||||
| 4 | amount thereof last reported in any document, other than | ||||||
| 5 | an annual report, interim annual report or final | ||||||
| 6 | transition annual report, required by this Act to be filed | ||||||
| 7 | in the office of the Secretary of State. | ||||||
| 8 | (c) Whenever the corporation shall be a party to a | ||||||
| 9 | statutory merger and shall be the surviving corporation, | ||||||
| 10 | an additional franchise tax at the time of filing its | ||||||
| 11 | report following merger, if such report discloses that the | ||||||
| 12 | amount represented in this State of its paid-in capital | ||||||
| 13 | immediately after the merger is greater than the aggregate | ||||||
| 14 | of the amounts represented in this State of the paid-in | ||||||
| 15 | capital of such of the merged corporations as were | ||||||
| 16 | authorized to transact business in this State at the time | ||||||
| 17 | of the merger, as last reported by them in any documents, | ||||||
| 18 | other than annual reports, required by this Act to be | ||||||
| 19 | filed in the office of the Secretary of State; and in | ||||||
| 20 | addition, the surviving corporation shall be liable for a | ||||||
| 21 | further additional franchise tax on the paid-in capital of | ||||||
| 22 | each of the merged corporations as last reported by them | ||||||
| 23 | in any document, other than an annual report, required by | ||||||
| 24 | this Act to be filed with the Secretary of State, from | ||||||
| 25 | their taxable year end to the next succeeding anniversary | ||||||
| 26 | month or, in the case of a corporation which has | ||||||
| |||||||
| |||||||
| 1 | established an extended filing month, the extended filing | ||||||
| 2 | month of the surviving corporation; however if the taxable | ||||||
| 3 | year ends within the 2-month period immediately preceding | ||||||
| 4 | the anniversary month or the extended filing month of the | ||||||
| 5 | surviving corporation, the tax will be computed to the | ||||||
| 6 | anniversary or, extended filing month of the surviving | ||||||
| 7 | corporation in the next succeeding calendar year. | ||||||
| 8 | (d) An annual franchise tax payable each year with any | ||||||
| 9 | annual report which the corporation is required by this | ||||||
| 10 | Act to file. | ||||||
| 11 | On or after January 1, 2020 and prior to January 1, 2021, | ||||||
| 12 | the first $30 in liability is exempt from the tax imposed under | ||||||
| 13 | this Section. On or after January 1, 2021 and before January 1, | ||||||
| 14 | 2024, the first $1,000 in liability is exempt from the tax | ||||||
| 15 | imposed under this Section. On and after January 1, 2024 and | ||||||
| 16 | before January 1, 2025, the first $5,000 in liability is | ||||||
| 17 | exempt from the tax imposed under this Section. On and after | ||||||
| 18 | January 1, 2025, the first $10,000 in liability is exempt from | ||||||
| 19 | the tax imposed under this Section. | ||||||
| 20 | (Source: P.A. 101-9, eff. 6-5-19; 102-16, eff. 6-17-21; | ||||||
| 21 | 102-558, eff. 8-20-21; 102-813, eff. 5-13-22.)
| ||||||
| 22 | ARTICLE 120. | ||||||
| 23 | Section 120-5. The Sports Wagering Act is amended by | ||||||
| 24 | changing Section 25-90 as follows:
| ||||||
| |||||||
| |||||||
| 1 | (230 ILCS 45/25-90) | ||||||
| 2 | Sec. 25-90. Tax; Sports Wagering Fund. | ||||||
| 3 | (a) For the privilege of holding a license to operate | ||||||
| 4 | sports wagering under this Act until June 30, 2024, this State | ||||||
| 5 | shall impose and collect 15% of a master sports wagering | ||||||
| 6 | licensee's adjusted gross sports wagering receipts from sports | ||||||
| 7 | wagering. The accrual method of accounting shall be used for | ||||||
| 8 | purposes of calculating the amount of the tax owed by the | ||||||
| 9 | licensee. | ||||||
| 10 | The taxes levied and collected pursuant to this subsection | ||||||
| 11 | (a) are due and payable to the Board no later than the last day | ||||||
| 12 | of the month following the calendar month in which the | ||||||
| 13 | adjusted gross sports wagering receipts were received and the | ||||||
| 14 | tax obligation was accrued. | ||||||
| 15 | (a-5) In addition to the tax imposed under subsection (a) | ||||||
| 16 | of this Section, for the privilege of holding a license to | ||||||
| 17 | operate sports wagering under this Act, the State shall impose | ||||||
| 18 | and collect 2% of the adjusted gross receipts from sports | ||||||
| 19 | wagers that are placed within a home rule county with a | ||||||
| 20 | population of over 3,000,000 inhabitants, which shall be paid, | ||||||
| 21 | subject to appropriation from the General Assembly, from the | ||||||
| 22 | Sports Wagering Fund to that home rule county for the purpose | ||||||
| 23 | of enhancing the county's criminal justice system. | ||||||
| 24 | (b) The Sports Wagering Fund is hereby created as a | ||||||
| 25 | special fund in the State treasury. Except as otherwise | ||||||
| |||||||
| |||||||
| 1 | provided in this Act, all moneys collected under this Act by | ||||||
| 2 | the Board shall be deposited into the Sports Wagering Fund. | ||||||
| 3 | Through August 25, 2024, on On the 25th of each month, any | ||||||
| 4 | moneys remaining in the Sports Wagering Fund in excess of the | ||||||
| 5 | anticipated monthly expenditures from the Fund through the | ||||||
| 6 | next month, as certified by the Board to the State | ||||||
| 7 | Comptroller, shall be transferred by the State Comptroller and | ||||||
| 8 | the State Treasurer to the Capital Projects Fund. Beginning | ||||||
| 9 | September 25, 2024, on the 25th of each month, of the moneys | ||||||
| 10 | remaining in the Sports Wagering Fund in excess of the | ||||||
| 11 | anticipated monthly expenditures from the Fund through the | ||||||
| 12 | next month, as certified by the Board to the State | ||||||
| 13 | Comptroller, the State Comptroller shall direct and the State | ||||||
| 14 | Treasurer shall transfer 58% to the General Revenue Fund and | ||||||
| 15 | 42% to the Capital Projects Fund. | ||||||
| 16 | (c) Beginning with July 2021, and on a monthly basis | ||||||
| 17 | thereafter, the Board shall certify to the State Comptroller | ||||||
| 18 | the amount of license fees collected in the month for initial | ||||||
| 19 | licenses issued under this Act, except for occupational | ||||||
| 20 | licenses. As soon after certification as practicable, the | ||||||
| 21 | State Comptroller shall direct and the State Treasurer shall | ||||||
| 22 | transfer the certified amount from the Sports Wagering Fund to | ||||||
| 23 | the Rebuild Illinois Projects Fund. | ||||||
| 24 | (d) Beginning on July 1, 2024, and for each 12-month | ||||||
| 25 | period thereafter, for the privilege of holding a license to | ||||||
| 26 | operate sports wagering under this Act, this State shall | ||||||
| |||||||
| |||||||
| 1 | impose privilege tax on the master sports licensee's adjusted | ||||||
| 2 | gross sports wagering receipts based on the following rates: | ||||||
| 3 | 20% of annual adjusted gross sports wagering receipts | ||||||
| 4 | up to and including $30,000,000. | ||||||
| 5 | 25% of annual adjusted gross sports wagering receipts | ||||||
| 6 | in excess of $30,000,000 but not exceeding $50,000,000. | ||||||
| 7 | 30% of annual adjusted gross sports wagering receipts | ||||||
| 8 | in excess of $50,000,000 but not exceeding $100,000,000. | ||||||
| 9 | 35% of annual adjusted gross sports wagering receipts | ||||||
| 10 | in excess of $100,000,000 but not exceeding $200,000,000. | ||||||
| 11 | 40% of annual adjusted gross sports wagering receipts | ||||||
| 12 | in excess of $200,000,000. | ||||||
| 13 | The accrual method of accounting shall be used for | ||||||
| 14 | purposes of calculating the amount of the tax owed by the | ||||||
| 15 | licensee. | ||||||
| 16 | The taxes levied and collected pursuant to this subsection | ||||||
| 17 | are due and payable to the Board no later than the last day of | ||||||
| 18 | the month following the calendar month in which the adjusted | ||||||
| 19 | gross sports wagering receipts were received and the tax | ||||||
| 20 | obligation was accrued. | ||||||
| 21 | (e) Annually, a master sports wagering licensee shall | ||||||
| 22 | transmit to the Board an audit of the financial transactions | ||||||
| 23 | and condition of the licensee's total operations. | ||||||
| 24 | Additionally, within 90 days after the end of each quarter of | ||||||
| 25 | each fiscal year, the master sports wagering licensee shall | ||||||
| 26 | transmit to the Board a compliance report on engagement | ||||||
| |||||||
| |||||||
| 1 | procedures determined by the Board. All audits and compliance | ||||||
| 2 | engagements shall be conducted by certified public accountants | ||||||
| 3 | selected by the Board. Each certified public accountant must | ||||||
| 4 | be registered in the State of Illinois under the Illinois | ||||||
| 5 | Public Accounting Act. The compensation for each certified | ||||||
| 6 | public accountant shall be paid directly by the master sports | ||||||
| 7 | wagering licensee to the certified public accountant. | ||||||
| 8 | (Source: P.A. 101-31, eff. 6-28-19; 102-16, eff. 6-17-21; | ||||||
| 9 | 102-687, eff. 12-17-21.)
| ||||||
| 10 | ARTICLE 130. | ||||||
| 11 | Section 130-5. The Video Gaming Act is amended by changing | ||||||
| 12 | Section 60 as follows:
| ||||||
| 13 | (230 ILCS 40/60) | ||||||
| 14 | Sec. 60. Imposition and distribution of tax. | ||||||
| 15 | (a) A tax of 30% is imposed on net terminal income and | ||||||
| 16 | shall be collected by the Board. | ||||||
| 17 | Of the tax collected under this subsection (a), | ||||||
| 18 | five-sixths shall be deposited into the Capital Projects Fund | ||||||
| 19 | and one-sixth shall be deposited into the Local Government | ||||||
| 20 | Video Gaming Distributive Fund. | ||||||
| 21 | (b) Beginning on July 1, 2019, an additional tax of 3% is | ||||||
| 22 | imposed on net terminal income and shall be collected by the | ||||||
| 23 | Board. | ||||||
| |||||||
| |||||||
| 1 | Beginning on July 1, 2020, an additional tax of 1% is | ||||||
| 2 | imposed on net terminal income and shall be collected by the | ||||||
| 3 | Board. | ||||||
| 4 | Beginning on July 1, 2024, an additional tax of 1% is | ||||||
| 5 | imposed on net terminal income and shall be collected by the | ||||||
| 6 | Board. | ||||||
| 7 | The tax collected under this subsection (b) shall be | ||||||
| 8 | deposited into the Capital Projects Fund. | ||||||
| 9 | (c) Revenues generated from the play of video gaming | ||||||
| 10 | terminals shall be deposited by the terminal operator, who is | ||||||
| 11 | responsible for tax payments, in a specially created, separate | ||||||
| 12 | bank account maintained by the video gaming terminal operator | ||||||
| 13 | to allow for electronic fund transfers of moneys for tax | ||||||
| 14 | payment. | ||||||
| 15 | (d) Each licensed establishment, licensed truck stop | ||||||
| 16 | establishment, licensed large truck stop establishment, | ||||||
| 17 | licensed fraternal establishment, and licensed veterans | ||||||
| 18 | establishment shall maintain an adequate video gaming fund, | ||||||
| 19 | with the amount to be determined by the Board. | ||||||
| 20 | (e) The State's percentage of net terminal income shall be | ||||||
| 21 | reported and remitted to the Board within 15 days after the | ||||||
| 22 | 15th day of each month and within 15 days after the end of each | ||||||
| 23 | month by the video terminal operator. A video terminal | ||||||
| 24 | operator who falsely reports or fails to report the amount due | ||||||
| 25 | required by this Section is guilty of a Class 4 felony and is | ||||||
| 26 | subject to termination of his or her license by the Board. Each | ||||||
| |||||||
| |||||||
| 1 | video terminal operator shall keep a record of net terminal | ||||||
| 2 | income in such form as the Board may require. All payments not | ||||||
| 3 | remitted when due shall be paid together with a penalty | ||||||
| 4 | assessment on the unpaid balance at a rate of 1.5% per month. | ||||||
| 5 | (Source: P.A. 101-31, eff. 6-28-19.)
| ||||||
| 6 | ARTICLE 135. | ||||||
| 7 | Section 135-5. The Property Tax Code is amended by | ||||||
| 8 | changing Section 15-170 as follows:
| ||||||
| 9 | (35 ILCS 200/15-170) | ||||||
| 10 | Sec. 15-170. Senior citizens homestead exemption. | ||||||
| 11 | (a) An annual homestead exemption limited, except as | ||||||
| 12 | described here with relation to cooperatives or life care | ||||||
| 13 | facilities, to a maximum reduction set forth below from the | ||||||
| 14 | property's value, as equalized or assessed by the Department, | ||||||
| 15 | is granted for property that is occupied as a residence by a | ||||||
| 16 | person 65 years of age or older who is liable for paying real | ||||||
| 17 | estate taxes on the property and is an owner of record of the | ||||||
| 18 | property or has a legal or equitable interest therein as | ||||||
| 19 | evidenced by a written instrument, except for a leasehold | ||||||
| 20 | interest, other than a leasehold interest of land on which a | ||||||
| 21 | single family residence is located, which is occupied as a | ||||||
| 22 | residence by a person 65 years or older who has an ownership | ||||||
| 23 | interest therein, legal, equitable or as a lessee, and on | ||||||
| |||||||
| |||||||
| 1 | which he or she is liable for the payment of property taxes. | ||||||
| 2 | Before taxable year 2004, the maximum reduction shall be | ||||||
| 3 | $2,500 in counties with 3,000,000 or more inhabitants and | ||||||
| 4 | $2,000 in all other counties. For taxable years 2004 through | ||||||
| 5 | 2005, the maximum reduction shall be $3,000 in all counties. | ||||||
| 6 | For taxable years 2006 and 2007, the maximum reduction shall | ||||||
| 7 | be $3,500. For taxable years 2008 through 2011, the maximum | ||||||
| 8 | reduction is $4,000 in all counties. For taxable year 2012, | ||||||
| 9 | the maximum reduction is $5,000 in counties with 3,000,000 or | ||||||
| 10 | more inhabitants and $4,000 in all other counties. For taxable | ||||||
| 11 | years 2013 through 2016, the maximum reduction is $5,000 in | ||||||
| 12 | all counties. For taxable years 2017 through 2022, the maximum | ||||||
| 13 | reduction is $8,000 in counties with 3,000,000 or more | ||||||
| 14 | inhabitants and $5,000 in all other counties. For taxable | ||||||
| 15 | years 2023 and thereafter, the maximum reduction is $8,000 in | ||||||
| 16 | counties with 3,000,000 or more inhabitants and counties that | ||||||
| 17 | are contiguous to a county of 3,000,000 or more inhabitants | ||||||
| 18 | and $5,000 in all other counties. | ||||||
| 19 | (b) For land improved with an apartment building owned and | ||||||
| 20 | operated as a cooperative, the maximum reduction from the | ||||||
| 21 | value of the property, as equalized by the Department, shall | ||||||
| 22 | be multiplied by the number of apartments or units occupied by | ||||||
| 23 | a person 65 years of age or older who is liable, by contract | ||||||
| 24 | with the owner or owners of record, for paying property taxes | ||||||
| 25 | on the property and is an owner of record of a legal or | ||||||
| 26 | equitable interest in the cooperative apartment building, | ||||||
| |||||||
| |||||||
| 1 | other than a leasehold interest. For land improved with a life | ||||||
| 2 | care facility, the maximum reduction from the value of the | ||||||
| 3 | property, as equalized by the Department, shall be multiplied | ||||||
| 4 | by the number of apartments or units occupied by persons 65 | ||||||
| 5 | years of age or older, irrespective of any legal, equitable, | ||||||
| 6 | or leasehold interest in the facility, who are liable, under a | ||||||
| 7 | contract with the owner or owners of record of the facility, | ||||||
| 8 | for paying property taxes on the property. In a cooperative or | ||||||
| 9 | a life care facility where a homestead exemption has been | ||||||
| 10 | granted, the cooperative association or the management firm of | ||||||
| 11 | the cooperative or facility shall credit the savings resulting | ||||||
| 12 | from that exemption only to the apportioned tax liability of | ||||||
| 13 | the owner or resident who qualified for the exemption. Any | ||||||
| 14 | person who willfully refuses to so credit the savings shall be | ||||||
| 15 | guilty of a Class B misdemeanor. Under this Section and | ||||||
| 16 | Sections 15-175, 15-176, and 15-177, "life care facility" | ||||||
| 17 | means a facility, as defined in Section 2 of the Life Care | ||||||
| 18 | Facilities Act, with which the applicant for the homestead | ||||||
| 19 | exemption has a life care contract as defined in that Act. | ||||||
| 20 | (c) When a homestead exemption has been granted under this | ||||||
| 21 | Section and the person qualifying subsequently becomes a | ||||||
| 22 | resident of a facility licensed under the Assisted Living and | ||||||
| 23 | Shared Housing Act, the Nursing Home Care Act, the Specialized | ||||||
| 24 | Mental Health Rehabilitation Act of 2013, the ID/DD Community | ||||||
| 25 | Care Act, or the MC/DD Act, the exemption shall continue so | ||||||
| 26 | long as the residence continues to be occupied by the | ||||||
| |||||||
| |||||||
| 1 | qualifying person's spouse if the spouse is 65 years of age or | ||||||
| 2 | older, or if the residence remains unoccupied but is still | ||||||
| 3 | owned by the person qualified for the homestead exemption. | ||||||
| 4 | (d) A person who will be 65 years of age during the current | ||||||
| 5 | assessment year shall be eligible to apply for the homestead | ||||||
| 6 | exemption during that assessment year. Application shall be | ||||||
| 7 | made during the application period in effect for the county of | ||||||
| 8 | his residence. | ||||||
| 9 | (e) Beginning with assessment year 2003, for taxes payable | ||||||
| 10 | in 2004, property that is first occupied as a residence after | ||||||
| 11 | January 1 of any assessment year by a person who is eligible | ||||||
| 12 | for the senior citizens homestead exemption under this Section | ||||||
| 13 | must be granted a pro-rata exemption for the assessment year. | ||||||
| 14 | The amount of the pro-rata exemption is the exemption allowed | ||||||
| 15 | in the county under this Section divided by 365 and multiplied | ||||||
| 16 | by the number of days during the assessment year the property | ||||||
| 17 | is occupied as a residence by a person eligible for the | ||||||
| 18 | exemption under this Section. The chief county assessment | ||||||
| 19 | officer must adopt reasonable procedures to establish | ||||||
| 20 | eligibility for this pro-rata exemption. | ||||||
| 21 | (f) The assessor or chief county assessment officer may | ||||||
| 22 | determine the eligibility of a life care facility to receive | ||||||
| 23 | the benefits provided by this Section, by affidavit, | ||||||
| 24 | application, visual inspection, questionnaire or other | ||||||
| 25 | reasonable methods in order to ensure insure that the tax | ||||||
| 26 | savings resulting from the exemption are credited by the | ||||||
| |||||||
| |||||||
| 1 | management firm to the apportioned tax liability of each | ||||||
| 2 | qualifying resident. The assessor may request reasonable proof | ||||||
| 3 | that the management firm has so credited the exemption. | ||||||
| 4 | (g) The chief county assessment officer of each county | ||||||
| 5 | with less than 3,000,000 inhabitants shall provide to each | ||||||
| 6 | person allowed a homestead exemption under this Section a form | ||||||
| 7 | to designate any other person to receive a duplicate of any | ||||||
| 8 | notice of delinquency in the payment of taxes assessed and | ||||||
| 9 | levied under this Code on the property of the person receiving | ||||||
| 10 | the exemption. The duplicate notice shall be in addition to | ||||||
| 11 | the notice required to be provided to the person receiving the | ||||||
| 12 | exemption, and shall be given in the manner required by this | ||||||
| 13 | Code. The person filing the request for the duplicate notice | ||||||
| 14 | shall pay a fee of $5 to cover administrative costs to the | ||||||
| 15 | supervisor of assessments, who shall then file the executed | ||||||
| 16 | designation with the county collector. Notwithstanding any | ||||||
| 17 | other provision of this Code to the contrary, the filing of | ||||||
| 18 | such an executed designation requires the county collector to | ||||||
| 19 | provide duplicate notices as indicated by the designation. A | ||||||
| 20 | designation may be rescinded by the person who executed such | ||||||
| 21 | designation at any time, in the manner and form required by the | ||||||
| 22 | chief county assessment officer. | ||||||
| 23 | (h) The assessor or chief county assessment officer may | ||||||
| 24 | determine the eligibility of residential property to receive | ||||||
| 25 | the homestead exemption provided by this Section by | ||||||
| 26 | application, visual inspection, questionnaire or other | ||||||
| |||||||
| |||||||
| 1 | reasonable methods. The determination shall be made in | ||||||
| 2 | accordance with guidelines established by the Department. | ||||||
| 3 | (i) In counties with 3,000,000 or more inhabitants, for | ||||||
| 4 | taxable years 2010 through 2018, and beginning again in | ||||||
| 5 | taxable year 2024, each taxpayer who has been granted an | ||||||
| 6 | exemption under this Section must reapply on an annual basis. | ||||||
| 7 | If a reapplication is required, then the chief county | ||||||
| 8 | assessment officer shall mail the application to the taxpayer | ||||||
| 9 | at least 60 days prior to the last day of the application | ||||||
| 10 | period for the county. | ||||||
| 11 | For taxable years 2019 and thereafter through 2023, in | ||||||
| 12 | counties with 3,000,000 or more inhabitants, a taxpayer who | ||||||
| 13 | has been granted an exemption under this Section need not | ||||||
| 14 | reapply. However, if the property ceases to be qualified for | ||||||
| 15 | the exemption under this Section in any year for which a | ||||||
| 16 | reapplication is not required under this Section, then the | ||||||
| 17 | owner of record of the property shall notify the chief county | ||||||
| 18 | assessment officer that the property is no longer qualified. | ||||||
| 19 | In addition, for taxable years 2019 and thereafter through | ||||||
| 20 | 2023, the chief county assessment officer of a county with | ||||||
| 21 | 3,000,000 or more inhabitants shall enter into an | ||||||
| 22 | intergovernmental agreement with the county clerk of that | ||||||
| 23 | county and the Department of Public Health, as well as any | ||||||
| 24 | other appropriate governmental agency, to obtain information | ||||||
| 25 | that documents the death of a taxpayer who has been granted an | ||||||
| 26 | exemption under this Section. Notwithstanding any other | ||||||
| |||||||
| |||||||
| 1 | provision of law, the county clerk and the Department of | ||||||
| 2 | Public Health shall provide that information to the chief | ||||||
| 3 | county assessment officer. The Department of Public Health | ||||||
| 4 | shall supply this information no less frequently than every | ||||||
| 5 | calendar quarter. Information concerning the death of a | ||||||
| 6 | taxpayer may be shared with the county treasurer. The chief | ||||||
| 7 | county assessment officer shall also enter into a data | ||||||
| 8 | exchange agreement with the Social Security Administration or | ||||||
| 9 | its agent to obtain access to the information regarding deaths | ||||||
| 10 | in possession of the Social Security Administration. The chief | ||||||
| 11 | county assessment officer shall, subject to the notice | ||||||
| 12 | requirements under subsection (m) of Section 9-275, terminate | ||||||
| 13 | the exemption under this Section if the information obtained | ||||||
| 14 | indicates that the property is no longer qualified for the | ||||||
| 15 | exemption. In counties with 3,000,000 or more inhabitants, the | ||||||
| 16 | assessor and the county clerk recorder of deeds shall | ||||||
| 17 | establish policies and practices for the regular exchange of | ||||||
| 18 | information for the purpose of alerting the assessor whenever | ||||||
| 19 | the transfer of ownership of any property receiving an | ||||||
| 20 | exemption under this Section has occurred. When such a | ||||||
| 21 | transfer occurs, the assessor shall mail a notice to the new | ||||||
| 22 | owner of the property (i) informing the new owner that the | ||||||
| 23 | exemption will remain in place through the year of the | ||||||
| 24 | transfer, after which it will be canceled, and (ii) providing | ||||||
| 25 | information pertaining to the rules for reapplying for the | ||||||
| 26 | exemption if the owner qualifies. In counties with 3,000,000 | ||||||
| |||||||
| |||||||
| 1 | or more inhabitants, the chief county assessment official | ||||||
| 2 | shall conduct, by no later than December 31 of the first year | ||||||
| 3 | of each reassessment cycle, as determined by Section 9-220, a | ||||||
| 4 | review audits of all exemptions granted under this Section for | ||||||
| 5 | the preceding reassessment cycle under this Section no later | ||||||
| 6 | than December 31, 2022 and no later than December 31, 2024. The | ||||||
| 7 | review audit shall be designed to ascertain whether any senior | ||||||
| 8 | homestead exemptions have been granted erroneously. If it is | ||||||
| 9 | determined that a senior homestead exemption has been | ||||||
| 10 | erroneously applied to a property, the chief county assessment | ||||||
| 11 | officer shall make use of the appropriate provisions of | ||||||
| 12 | Section 9-275 in relation to the property that received the | ||||||
| 13 | erroneous homestead exemption. | ||||||
| 14 | (j) In counties with less than 3,000,000 inhabitants, the | ||||||
| 15 | county board may by resolution provide that if a person has | ||||||
| 16 | been granted a homestead exemption under this Section, the | ||||||
| 17 | person qualifying need not reapply for the exemption. In | ||||||
| 18 | counties in which the county board passes such a resolution, | ||||||
| 19 | the chief county assessment official shall, prior to the | ||||||
| 20 | submission of the final abstract for the first year of each | ||||||
| 21 | reassessment cycle, as determined by Section 9-215, review all | ||||||
| 22 | exemptions granted for the preceding reassessment cycle under | ||||||
| 23 | this Section. The review shall be designed to ascertain | ||||||
| 24 | whether any senior homestead exemptions have been granted | ||||||
| 25 | erroneously. | ||||||
| 26 | In counties with less than 3,000,000 inhabitants, if the | ||||||
| |||||||
| |||||||
| 1 | assessor or chief county assessment officer requires annual | ||||||
| 2 | application for verification of eligibility for an exemption | ||||||
| 3 | once granted under this Section, the application shall be | ||||||
| 4 | mailed to the taxpayer. | ||||||
| 5 | (l) The assessor or chief county assessment officer shall | ||||||
| 6 | notify each person who qualifies for an exemption under this | ||||||
| 7 | Section that the person may also qualify for deferral of real | ||||||
| 8 | estate taxes under the Senior Citizens Real Estate Tax | ||||||
| 9 | Deferral Act. The notice shall set forth the qualifications | ||||||
| 10 | needed for deferral of real estate taxes, the address and | ||||||
| 11 | telephone number of county collector, and a statement that | ||||||
| 12 | applications for deferral of real estate taxes may be obtained | ||||||
| 13 | from the county collector. | ||||||
| 14 | (m) Notwithstanding Sections 6 and 8 of the State Mandates | ||||||
| 15 | Act, no reimbursement by the State is required for the | ||||||
| 16 | implementation of any mandate created by this Section. | ||||||
| 17 | (Source: P.A. 101-453, eff. 8-23-19; 101-622, eff. 1-14-20; | ||||||
| 18 | 102-895, eff. 5-23-22.)
| ||||||
| 19 | ARTICLE 140. | ||||||
| 20 | Section 140-5. The Property Tax Code is amended by | ||||||
| 21 | changing Sections 10-40 and 10-50 as follows:
| ||||||
| 22 | (35 ILCS 200/10-40) | ||||||
| 23 | Sec. 10-40. Historic Residence Assessment Freeze Law; | ||||||
| |||||||
| |||||||
| 1 | definitions. This Section and Sections 10-45 through 10-85 may | ||||||
| 2 | be cited as the Historic Residence Assessment Freeze Law. As | ||||||
| 3 | used in this Section and Sections 10-45 through 10-85: | ||||||
| 4 | (a) "Director" means the Director of Historic | ||||||
| 5 | Preservation. | ||||||
| 6 | (b) "Approved county or municipal landmark ordinance" | ||||||
| 7 | means a county or municipal ordinance approved by the | ||||||
| 8 | Director. | ||||||
| 9 | (c) "Historic building" means an owner-occupied single | ||||||
| 10 | family residence or an owner-occupied multi-family | ||||||
| 11 | residence and the tract, lot or parcel upon which it is | ||||||
| 12 | located, or a building or buildings owned and operated as | ||||||
| 13 | a cooperative, if: | ||||||
| 14 | (1) individually listed on the National Register | ||||||
| 15 | of Historic Places or the Illinois Register of | ||||||
| 16 | Historic Places; | ||||||
| 17 | (2) individually designated pursuant to an | ||||||
| 18 | approved county or municipal landmark ordinance; or | ||||||
| 19 | (3) within a district listed on the National | ||||||
| 20 | Register of Historic Places or designated pursuant to | ||||||
| 21 | an approved county or municipal landmark ordinance, if | ||||||
| 22 | the Director determines that the building is of | ||||||
| 23 | historic significance to the district in which it is | ||||||
| 24 | located. | ||||||
| 25 | Historic building does not mean an individual unit of a | ||||||
| 26 | cooperative. | ||||||
| |||||||
| |||||||
| 1 | (d) "Assessment officer" means the chief county | ||||||
| 2 | assessment officer. | ||||||
| 3 | (e) "Certificate of rehabilitation" means the | ||||||
| 4 | certificate issued by the Director upon the renovation, | ||||||
| 5 | restoration, preservation or rehabilitation of an historic | ||||||
| 6 | building under this Code. | ||||||
| 7 | (f) "Rehabilitation period" means the period of time | ||||||
| 8 | necessary to renovate, restore, preserve or rehabilitate | ||||||
| 9 | an historic building as determined by the Director. | ||||||
| 10 | (g) "Standards for rehabilitation" means the Secretary | ||||||
| 11 | of Interior's standards for rehabilitation as promulgated | ||||||
| 12 | by the U.S. Department of the Interior. | ||||||
| 13 | (h) "Fair cash value" means the fair cash value of the | ||||||
| 14 | historic building, as finally determined for that year by | ||||||
| 15 | the assessment officer, board of review, Property Tax | ||||||
| 16 | Appeal Board, or court on the basis of the assessment | ||||||
| 17 | officer's property record card, representing the value of | ||||||
| 18 | the property prior to the commencement of rehabilitation | ||||||
| 19 | without consideration of any reduction reflecting value | ||||||
| 20 | during the rehabilitation work. The changes made to this | ||||||
| 21 | Section by this amendatory Act of the 103rd General | ||||||
| 22 | Assembly are declarative of existing law and shall not be | ||||||
| 23 | construed as a new enactment. | ||||||
| 24 | (i) "Base year valuation" means the fair cash value of | ||||||
| 25 | the historic building for the year in which the | ||||||
| 26 | rehabilitation period begins but prior to the commencement | ||||||
| |||||||
| |||||||
| 1 | of the rehabilitation and does not include any reduction | ||||||
| 2 | in value during the rehabilitation work. | ||||||
| 3 | (j) "Adjustment in value" means the difference for any | ||||||
| 4 | year between the then current fair cash value and the base | ||||||
| 5 | year valuation. | ||||||
| 6 | (k) "Eight-year valuation period" means the 8 years | ||||||
| 7 | from the date of the issuance of the certificate of | ||||||
| 8 | rehabilitation. | ||||||
| 9 | (l) "Adjustment valuation period" means the 4 years | ||||||
| 10 | following the 8 year valuation period. | ||||||
| 11 | (m) "Substantial rehabilitation" means interior or | ||||||
| 12 | exterior rehabilitation work that preserves the historic | ||||||
| 13 | building in a manner that significantly improves its | ||||||
| 14 | condition. | ||||||
| 15 | (n) "Approved local government" means a local | ||||||
| 16 | government that has been certified by the Director as: | ||||||
| 17 | (1) enforcing appropriate legislation for the | ||||||
| 18 | designation of historic buildings; | ||||||
| 19 | (2) having established an adequate and qualified | ||||||
| 20 | historic review commission; | ||||||
| 21 | (3) maintaining a system for the survey and | ||||||
| 22 | inventory of historic properties; | ||||||
| 23 | (4) providing for adequate public participation in | ||||||
| 24 | the local historic preservation program; and | ||||||
| 25 | (5) maintaining a system for reviewing | ||||||
| 26 | applications under this Section in accordance with | ||||||
| |||||||
| |||||||
| 1 | rules and regulations promulgated by the Director. | ||||||
| 2 | (o) "Cooperative" means a building or buildings and | ||||||
| 3 | the tract, lot, or parcel on which the building or | ||||||
| 4 | buildings are located, if the building or buildings are | ||||||
| 5 | devoted to residential uses by the owners and fee title to | ||||||
| 6 | the land and building or buildings is owned by a | ||||||
| 7 | corporation or other legal entity in which the | ||||||
| 8 | shareholders or other co-owners each also have a long-term | ||||||
| 9 | proprietary lease or other long-term arrangement of | ||||||
| 10 | exclusive possession for a specific unit of occupancy | ||||||
| 11 | space located within the same building or buildings. | ||||||
| 12 | (p) "Owner", in the case of a cooperative, means the | ||||||
| 13 | Association. | ||||||
| 14 | (q) "Association", in the case of a cooperative, means | ||||||
| 15 | the entity responsible for the administration of a | ||||||
| 16 | cooperative, which entity may be incorporated or | ||||||
| 17 | unincorporated, profit or nonprofit. | ||||||
| 18 | (r) "Owner-occupied single family residence" means a | ||||||
| 19 | residence in which the title holder of record (i) holds | ||||||
| 20 | fee simple ownership and (ii) occupies the property as | ||||||
| 21 | his, her, or their principal residence. | ||||||
| 22 | (s) "Owner-occupied multi-family residence" means | ||||||
| 23 | residential property comprised of not more than 6 living | ||||||
| 24 | units in which the title holder of record (i) holds fee | ||||||
| 25 | simple ownership and (ii) occupies one unit as his, her, | ||||||
| 26 | or their principal residence. The remaining units may be | ||||||
| |||||||
| |||||||
| 1 | leased. | ||||||
| 2 | The changes made to this Section by this amendatory Act of | ||||||
| 3 | the 91st General Assembly are declarative of existing law and | ||||||
| 4 | shall not be construed as a new enactment. | ||||||
| 5 | (Source: P.A. 90-114, eff. 1-1-98; 91-806, eff. 1-1-01.)
| ||||||
| 6 | (35 ILCS 200/10-50) | ||||||
| 7 | Sec. 10-50. Valuation after 8 year valuation period. | ||||||
| 8 | (a) For the 4 years after the expiration of the 8-year | ||||||
| 9 | valuation period, the valuation for purposes of computing the | ||||||
| 10 | assessed valuation shall not exceed the following be as | ||||||
| 11 | follows: | ||||||
| 12 | For the first year, the base year valuation plus 25% | ||||||
| 13 | of the adjustment in value. | ||||||
| 14 | For the second year, the base year valuation plus 50% | ||||||
| 15 | of the adjustment in value. | ||||||
| 16 | For the third year, the base year valuation plus 75% | ||||||
| 17 | of the adjustment in value. | ||||||
| 18 | For the fourth year, the then current fair cash value. | ||||||
| 19 | (b) If the current fair cash value during the adjustment | ||||||
| 20 | valuation period is less than the base year valuation with the | ||||||
| 21 | applicable adjustment, the assessment shall be based on the | ||||||
| 22 | current fair cash value. The changes made to this Section by | ||||||
| 23 | this amendatory Act of the 103rd General Assembly are | ||||||
| 24 | declarative of existing law and shall not be construed as a new | ||||||
| 25 | enactment. | ||||||
| |||||||
| |||||||
| 1 | (Source: P.A. 82-1023; 88-455.)
| ||||||
| 2 | ARTICLE 145. | ||||||
| 3 | Section 145-5. The Property Tax Code is amended by | ||||||
| 4 | changing Section 15-40 as follows:
| ||||||
| 5 | (35 ILCS 200/15-40) | ||||||
| 6 | Sec. 15-40. Religious purposes, orphanages, or school and | ||||||
| 7 | religious purposes. | ||||||
| 8 | (a) Property used exclusively for: | ||||||
| 9 | (1) religious purposes, or | ||||||
| 10 | (2) school and religious purposes, or | ||||||
| 11 | (3) orphanages | ||||||
| 12 | qualifies for exemption as long as it is not used with a view | ||||||
| 13 | to profit. | ||||||
| 14 | (b) Property that is owned by | ||||||
| 15 | (1) churches or | ||||||
| 16 | (2) religious institutions or | ||||||
| 17 | (3) religious denominations | ||||||
| 18 | and that is used in conjunction therewith as housing | ||||||
| 19 | facilities provided for ministers (including bishops, district | ||||||
| 20 | superintendents and similar church officials whose ministerial | ||||||
| 21 | duties are not limited to a single congregation), their | ||||||
| 22 | spouses, children and domestic workers, performing the duties | ||||||
| 23 | of their vocation as ministers at such churches or religious | ||||||
| |||||||
| |||||||
| 1 | institutions or for such religious denominations, including | ||||||
| 2 | the convents and monasteries where persons engaged in | ||||||
| 3 | religious activities reside also qualifies for exemption. | ||||||
| 4 | A parsonage, convent or monastery or other housing | ||||||
| 5 | facility shall be considered under this Section to be | ||||||
| 6 | exclusively used for religious purposes when the persons who | ||||||
| 7 | perform religious related activities shall, as a condition of | ||||||
| 8 | their employment or association, reside in the facility. | ||||||
| 9 | (c) In Cook County, whenever any interest in a property | ||||||
| 10 | exempt under this Section is transferred, notice of that | ||||||
| 11 | transfer must be filed with the county clerk recorder. The | ||||||
| 12 | chief county assessment officer shall prepare and make | ||||||
| 13 | available a form notice for this purpose. Whenever a notice is | ||||||
| 14 | filed, the county clerk recorder shall transmit a copy of that | ||||||
| 15 | recorded notice to the chief county assessment officer within | ||||||
| 16 | 14 days after receipt. | ||||||
| 17 | (Source: P.A. 92-333, eff. 8-10-01.)
| ||||||
| 18 | ARTICLE 150. | ||||||
| 19 | Section 150-1. Short title. This Act may be cited as the | ||||||
| 20 | Interchange Fee Prohibition Act. References in this Article to | ||||||
| 21 | "this Act" mean this Article.
| ||||||
| 22 | Section 150-5. Definitions. As used in this Act: | ||||||
| 23 | "Acquirer bank" means a member of a payment card network | ||||||
| |||||||
| |||||||
| 1 | that contracts with a merchant for the settlement of | ||||||
| 2 | electronic payment transactions. An acquirer bank may contract | ||||||
| 3 | directly with merchants or indirectly through a processor to | ||||||
| 4 | process electronic payment transactions. | ||||||
| 5 | "Authorization" means the process through which a merchant | ||||||
| 6 | requests approval for an electronic payment transaction from | ||||||
| 7 | the issuer. | ||||||
| 8 | "Clearance" means the process of transmitting final | ||||||
| 9 | transaction data from a merchant to an issuer for posting to | ||||||
| 10 | the cardholder's account and the calculation of fees and | ||||||
| 11 | charges, including interchange fees, that apply to the issuer | ||||||
| 12 | and the merchant. | ||||||
| 13 | "Credit card" means a card, plate, coupon book, or other | ||||||
| 14 | credit device existing for the purpose of obtaining money, | ||||||
| 15 | property, labor, or services on credit. | ||||||
| 16 | "Debit card" means a card or other payment code or device | ||||||
| 17 | issued or approved for use through a payment card network to | ||||||
| 18 | debit an asset account, regardless of the purpose for which | ||||||
| 19 | the account is established, whether authorization is based on | ||||||
| 20 | a signature, a personal identification number, or other means. | ||||||
| 21 | "Debit card" includes a general use prepaid card, as defined | ||||||
| 22 | in 15 U.S.C. 16931-1. "Debit card" does not include paper | ||||||
| 23 | checks. | ||||||
| 24 | "Electronic payment transaction" means a transaction in | ||||||
| 25 | which a person uses a debit card, a credit card, or other | ||||||
| 26 | payment code or device issued or approved through a payment | ||||||
| |||||||
| |||||||
| 1 | card network to debit a deposit account or use a line of | ||||||
| 2 | credit, whether authorization is based on a signature, a | ||||||
| 3 | personal identification number, or other means. | ||||||
| 4 | "Gratuity" means a voluntary monetary contribution to an | ||||||
| 5 | employee from a guest, patron, or customer in connection with | ||||||
| 6 | services rendered. | ||||||
| 7 | "Interchange fee" means a fee established, charged, or | ||||||
| 8 | received by a payment card network for the purpose of | ||||||
| 9 | compensating the issuer for its involvement in an electronic | ||||||
| 10 | payment transaction. | ||||||
| 11 | "Issuer" means a person issuing a debit card or credit | ||||||
| 12 | card or the issuer's agent. | ||||||
| 13 | "Merchant" means a person that collects and remits a tax. | ||||||
| 14 | "Payment card network" means an entity that: | ||||||
| 15 | (1) directly or through licensed members, processors, | ||||||
| 16 | or agents, provides the proprietary services, | ||||||
| 17 | infrastructure, and software to route information and data | ||||||
| 18 | for the purpose of conducting electronic payment | ||||||
| 19 | transaction authorization, clearance, and settlement; and | ||||||
| 20 | (2) a merchant uses to accept as a form of payment a | ||||||
| 21 | brand of debit card, credit card, or other device that may | ||||||
| 22 | be used to carry out electronic payment transactions. | ||||||
| 23 | "Person" means any individual, firm, public or private | ||||||
| 24 | corporation, government, partnership, association, or any | ||||||
| 25 | other organization or entity. | ||||||
| 26 | "Processor" means an entity that facilitates, services, | ||||||
| |||||||
| |||||||
| 1 | processes, or manages the debit or credit authorization, | ||||||
| 2 | billing, transfer, payment procedures, or settlement with | ||||||
| 3 | respect to any electronic payment transaction. | ||||||
| 4 | "Settlement" means the process of transmitting sales | ||||||
| 5 | information to the issuing bank for collection and | ||||||
| 6 | reimbursement of funds to the merchant and calculating and | ||||||
| 7 | reporting the net transaction amount to the issuer and | ||||||
| 8 | merchant for an electronic payment transaction that is | ||||||
| 9 | cleared. | ||||||
| 10 | "Tax" means any use and occupation tax or excise tax | ||||||
| 11 | imposed by the State or a unit of local government in the | ||||||
| 12 | State. | ||||||
| 13 | "Tax documentation" means documentation sufficient for the | ||||||
| 14 | payment card network to determine the total amount of the | ||||||
| 15 | electronic payment transaction and the tax or gratuity amount | ||||||
| 16 | of the transaction. Tax documentation may be related to a | ||||||
| 17 | single electronic payment transaction or multiple electronic | ||||||
| 18 | payment transactions aggregated over a period of time. | ||||||
| 19 | Examples of tax documentation include, but are not limited to, | ||||||
| 20 | invoices, receipts, journals, ledgers, and tax returns filed | ||||||
| 21 | with the Department of Revenue or local taxing authorities.
| ||||||
| 22 | Section 150-10. Interchange fees on taxes prohibited. | ||||||
| 23 | (a) An issuer, a payment card network, an acquirer bank, | ||||||
| 24 | or a processor may not receive or charge a merchant any | ||||||
| 25 | interchange fee on the tax amount or gratuity of an electronic | ||||||
| |||||||
| |||||||
| 1 | payment transaction if the merchant informs the acquirer bank | ||||||
| 2 | or its designee of the tax or gratuity amount as part of the | ||||||
| 3 | authorization or settlement process for the electronic payment | ||||||
| 4 | transaction. The merchant must transmit the tax or gratuity | ||||||
| 5 | amount data as part of the authorization or settlement process | ||||||
| 6 | to avoid being charged interchange fees on the tax or gratuity | ||||||
| 7 | amount of an electronic payment transaction. | ||||||
| 8 | (b) A merchant that does not transmit the tax or gratuity | ||||||
| 9 | amount data in accordance with this Section may submit tax | ||||||
| 10 | documentation for the electronic payment transaction to the | ||||||
| 11 | acquirer bank or its designee no later than 180 days after the | ||||||
| 12 | date of the electronic payment transaction, and, within 30 | ||||||
| 13 | days after the merchant submits the necessary tax | ||||||
| 14 | documentation, the issuer must credit to the merchant the | ||||||
| 15 | amount of interchange fees charged on the tax or gratuity | ||||||
| 16 | amount of the electronic payment transaction. | ||||||
| 17 | (c) This Section does not create liability for a payment | ||||||
| 18 | card network regarding the accuracy of the tax or gratuity | ||||||
| 19 | data reported by the merchant. | ||||||
| 20 | (d) It shall be unlawful for an issuer, a payment card | ||||||
| 21 | network, an acquirer bank, or a processor to alter or | ||||||
| 22 | manipulate the computation and imposition of interchange fees | ||||||
| 23 | by increasing the rate or amount of the fees applicable to or | ||||||
| 24 | imposed upon the portion of a credit or debit card transaction | ||||||
| 25 | not attributable to taxes or other fees charged to the | ||||||
| 26 | retailer to circumvent the effect of this Section.
| ||||||
| |||||||
| |||||||
| 1 | Section 150-15. Penalties. | ||||||
| 2 | (a) An issuer, a payment card network, an acquirer bank, a | ||||||
| 3 | processor, or other designated entity that has received the | ||||||
| 4 | tax or gratuity amount data and violates Section 150-10 is | ||||||
| 5 | subject to a civil penalty of $1,000 per electronic payment | ||||||
| 6 | transaction, and the issuer must refund the merchant the | ||||||
| 7 | interchange fee calculated on the tax or gratuity amount | ||||||
| 8 | relative to the electronic payment transaction. | ||||||
| 9 | (b) An entity, other than the merchant, involved in | ||||||
| 10 | facilitating or processing an electronic payment transaction, | ||||||
| 11 | including, but not limited to, an issuer, a payment card | ||||||
| 12 | network, an acquirer bank, a processor, or other designated | ||||||
| 13 | entity, may not distribute, exchange, transfer, disseminate, | ||||||
| 14 | or use the electronic payment transaction data except to | ||||||
| 15 | facilitate or process the electronic payment transaction or as | ||||||
| 16 | required by law. A violation of this subsection constitutes a | ||||||
| 17 | violation of the Consumer Fraud and Deceptive Business | ||||||
| 18 | Practices Act.
| ||||||
| 19 | Section 150-95. Severability. The provisions of this Act | ||||||
| 20 | are severable under Section 1.31 of the Statute on Statutes.
| ||||||
| 21 | ARTICLE 155. | ||||||
| 22 | Section 155-5. The Property Tax Code is amended by | ||||||
| |||||||
| |||||||
| 1 | changing Sections 9-45 and 11-15 as follows:
| ||||||
| 2 | (35 ILCS 200/9-45) | ||||||
| 3 | Sec. 9-45. Property index number system. The county clerk | ||||||
| 4 | in counties of 3,000,000 or more inhabitants and, subject to | ||||||
| 5 | the approval of the county board, the chief county assessment | ||||||
| 6 | officer or recorder, in counties of less than 3,000,000 | ||||||
| 7 | inhabitants, may establish a property index number system | ||||||
| 8 | under which property may be listed for purposes of assessment, | ||||||
| 9 | collection of taxes or automation of the office of the | ||||||
| 10 | recorder. The system may be adopted in addition to, or instead | ||||||
| 11 | of, the method of listing by legal description as provided in | ||||||
| 12 | Section 9-40. The system shall describe property by township, | ||||||
| 13 | section, block, and parcel or lot, and may cross-reference the | ||||||
| 14 | street or post office address, if any, and street code number, | ||||||
| 15 | if any. The county clerk, county treasurer, chief county | ||||||
| 16 | assessment officer or recorder may establish and maintain | ||||||
| 17 | cross indexes of numbers assigned under the system with the | ||||||
| 18 | complete legal description of the properties to which the | ||||||
| 19 | numbers relate. Index numbers shall be assigned by the county | ||||||
| 20 | clerk in counties of 3,000,000 or more inhabitants, and, at | ||||||
| 21 | the direction of the county board in counties with less than | ||||||
| 22 | 3,000,000 inhabitants, shall be assigned by the chief county | ||||||
| 23 | assessment officer or recorder. Tax maps of the county clerk, | ||||||
| 24 | county treasurer or chief county assessment officer shall | ||||||
| 25 | carry those numbers. The indexes shall be open to public | ||||||
| |||||||
| |||||||
| 1 | inspection and be made available to the public. Any property | ||||||
| 2 | index number system established prior to the effective date of | ||||||
| 3 | this Code shall remain valid. However, in counties with less | ||||||
| 4 | than 3,000,000 inhabitants, the system may be transferred to | ||||||
| 5 | another authority upon the approval of the county board. | ||||||
| 6 | Any real property used for a power generating or | ||||||
| 7 | automotive manufacturing facility located within a county of | ||||||
| 8 | less than 1,000,000 inhabitants, as to which litigation with | ||||||
| 9 | respect to its assessed valuation is pending or was pending as | ||||||
| 10 | of January 1, 1993, may be the subject of a real property tax | ||||||
| 11 | assessment settlement agreement among the taxpayer and taxing | ||||||
| 12 | districts in which it is situated. In addition, any real | ||||||
| 13 | property that is located in a county with fewer than 1,000,000 | ||||||
| 14 | inhabitants and (i) is used for natural gas extraction and | ||||||
| 15 | fractionation or olefin and polymer manufacturing or (ii) is | ||||||
| 16 | used for a petroleum refinery and (ii) located within a county | ||||||
| 17 | of less than 1,000,000 inhabitants may be the subject of a real | ||||||
| 18 | property tax assessment settlement agreement among the | ||||||
| 19 | taxpayer and taxing districts in which the property is | ||||||
| 20 | situated if litigation is or was pending as to its assessed | ||||||
| 21 | valuation as of January 1, 2003 or thereafter. Other | ||||||
| 22 | appropriate authorities, which may include county and State | ||||||
| 23 | boards or officials, may also be parties to such agreements. | ||||||
| 24 | Such agreements may include the assessment of the facility or | ||||||
| 25 | property for any years in dispute as well as for up to 10 years | ||||||
| 26 | in the future. Such agreements may provide for the settlement | ||||||
| |||||||
| |||||||
| 1 | of issues relating to the assessed value of the facility and | ||||||
| 2 | may provide for related payments, refunds, claims, credits | ||||||
| 3 | against taxes and liabilities in respect to past and future | ||||||
| 4 | taxes of taxing districts, including any fund created under | ||||||
| 5 | Section 20-35 of this Act, all implementing the settlement | ||||||
| 6 | agreement. Any such agreement may provide that parties thereto | ||||||
| 7 | agree not to challenge assessments as provided in the | ||||||
| 8 | agreement. An agreement entered into on or after January 1, | ||||||
| 9 | 1993 may provide for the classification of property that is | ||||||
| 10 | the subject of the agreement as real or personal during the | ||||||
| 11 | term of the agreement and thereafter. It may also provide that | ||||||
| 12 | taxing districts agree to reimburse the taxpayer for amounts | ||||||
| 13 | paid by the taxpayer in respect to taxes for the real property | ||||||
| 14 | which is the subject of the agreement to the extent levied by | ||||||
| 15 | those respective districts, over and above amounts which would | ||||||
| 16 | be due if the facility were to be assessed as provided in the | ||||||
| 17 | agreement. Such reimbursement may be provided in the agreement | ||||||
| 18 | to be made by credit against taxes of the taxpayer. No credits | ||||||
| 19 | shall be applied against taxes levied with respect to debt | ||||||
| 20 | service or lease payments of a taxing district. No referendum | ||||||
| 21 | approval or appropriation shall be required for such an | ||||||
| 22 | agreement or such credits and any such obligation shall not | ||||||
| 23 | constitute indebtedness of the taxing district for purposes of | ||||||
| 24 | any statutory limitation. The county collector shall treat | ||||||
| 25 | credited amounts as if they had been received by the collector | ||||||
| 26 | as taxes paid by the taxpayer and as if remitted to the | ||||||
| |||||||
| |||||||
| 1 | district. A county treasurer who is a party to such an | ||||||
| 2 | agreement may agree to hold amounts paid in escrow as provided | ||||||
| 3 | in the agreement for possible use for paying taxes until | ||||||
| 4 | conditions of the agreement are met and then to apply these | ||||||
| 5 | amounts as provided in the agreement. No such settlement | ||||||
| 6 | agreement shall be effective unless it shall have been | ||||||
| 7 | approved by the court in which such litigation is pending. Any | ||||||
| 8 | such agreement which has been entered into prior to adoption | ||||||
| 9 | of this amendatory Act of 1988 and which is contingent upon | ||||||
| 10 | enactment of authorizing legislation shall be binding and | ||||||
| 11 | enforceable. | ||||||
| 12 | (Source: P.A. 96-609, eff. 8-24-09.)
| ||||||
| 13 | (35 ILCS 200/11-15) | ||||||
| 14 | Sec. 11-15. Method of valuation for pollution control | ||||||
| 15 | facilities. To determine 33 1/3% of the fair cash value of any | ||||||
| 16 | certified pollution control facility facilities in assessing | ||||||
| 17 | those facilities, the Department shall determine take into | ||||||
| 18 | consideration the actual or probable net earnings attributable | ||||||
| 19 | to the facilities in question, capitalized on the basis of | ||||||
| 20 | their productive earning value to their owner; the probable | ||||||
| 21 | net value that which could be realized by its their owner if | ||||||
| 22 | the facility facilities were removed and sold at a fair, | ||||||
| 23 | voluntary sale, giving due account to the expense of removal | ||||||
| 24 | and condition of the particular facility facilities in | ||||||
| 25 | question; and other information as the Department may consider | ||||||
| |||||||
| |||||||
| 1 | as bearing on the fair cash value of the facilities to their | ||||||
| 2 | owner, consistent with the principles set forth in this | ||||||
| 3 | Section. For the purposes of this Code, earnings shall be | ||||||
| 4 | attributed to a pollution control facility only to the extent | ||||||
| 5 | that its operation results in the production of a commercially | ||||||
| 6 | saleable by-product or increases the production or reduces the | ||||||
| 7 | production costs of the products or services otherwise sold by | ||||||
| 8 | the owner of such facility. The assessed value of the facility | ||||||
| 9 | shall be 33/1/3% of the fair cash value of the facility. | ||||||
| 10 | (Source: P.A. 83-121; 88-455.)
| ||||||
| 11 | ARTICLE 160. | ||||||
| 12 | Section 160-5. The Illinois Gambling Act is amended by | ||||||
| 13 | changing Section 13 as follows:
| ||||||
| 14 | (230 ILCS 10/13) (from Ch. 120, par. 2413) | ||||||
| 15 | Sec. 13. Wagering tax; rate; distribution. | ||||||
| 16 | (a) Until January 1, 1998, a tax is imposed on the adjusted | ||||||
| 17 | gross receipts received from gambling games authorized under | ||||||
| 18 | this Act at the rate of 20%. | ||||||
| 19 | (a-1) From January 1, 1998 until July 1, 2002, a privilege | ||||||
| 20 | tax is imposed on persons engaged in the business of | ||||||
| 21 | conducting riverboat gambling operations, based on the | ||||||
| 22 | adjusted gross receipts received by a licensed owner from | ||||||
| 23 | gambling games authorized under this Act at the following | ||||||
| |||||||
| |||||||
| 1 | rates: | ||||||
| 2 | 15% of annual adjusted gross receipts up to and | ||||||
| 3 | including $25,000,000; | ||||||
| 4 | 20% of annual adjusted gross receipts in excess of | ||||||
| 5 | $25,000,000 but not exceeding $50,000,000; | ||||||
| 6 | 25% of annual adjusted gross receipts in excess of | ||||||
| 7 | $50,000,000 but not exceeding $75,000,000; | ||||||
| 8 | 30% of annual adjusted gross receipts in excess of | ||||||
| 9 | $75,000,000 but not exceeding $100,000,000; | ||||||
| 10 | 35% of annual adjusted gross receipts in excess of | ||||||
| 11 | $100,000,000. | ||||||
| 12 | (a-2) From July 1, 2002 until July 1, 2003, a privilege tax | ||||||
| 13 | is imposed on persons engaged in the business of conducting | ||||||
| 14 | riverboat gambling operations, other than licensed managers | ||||||
| 15 | conducting riverboat gambling operations on behalf of the | ||||||
| 16 | State, based on the adjusted gross receipts received by a | ||||||
| 17 | licensed owner from gambling games authorized under this Act | ||||||
| 18 | at the following rates: | ||||||
| 19 | 15% of annual adjusted gross receipts up to and | ||||||
| 20 | including $25,000,000; | ||||||
| 21 | 22.5% of annual adjusted gross receipts in excess of | ||||||
| 22 | $25,000,000 but not exceeding $50,000,000; | ||||||
| 23 | 27.5% of annual adjusted gross receipts in excess of | ||||||
| 24 | $50,000,000 but not exceeding $75,000,000; | ||||||
| 25 | 32.5% of annual adjusted gross receipts in excess of | ||||||
| 26 | $75,000,000 but not exceeding $100,000,000; | ||||||
| |||||||
| |||||||
| 1 | 37.5% of annual adjusted gross receipts in excess of | ||||||
| 2 | $100,000,000 but not exceeding $150,000,000; | ||||||
| 3 | 45% of annual adjusted gross receipts in excess of | ||||||
| 4 | $150,000,000 but not exceeding $200,000,000; | ||||||
| 5 | 50% of annual adjusted gross receipts in excess of | ||||||
| 6 | $200,000,000. | ||||||
| 7 | (a-3) Beginning July 1, 2003, a privilege tax is imposed | ||||||
| 8 | on persons engaged in the business of conducting riverboat | ||||||
| 9 | gambling operations, other than licensed managers conducting | ||||||
| 10 | riverboat gambling operations on behalf of the State, based on | ||||||
| 11 | the adjusted gross receipts received by a licensed owner from | ||||||
| 12 | gambling games authorized under this Act at the following | ||||||
| 13 | rates: | ||||||
| 14 | 15% of annual adjusted gross receipts up to and | ||||||
| 15 | including $25,000,000; | ||||||
| 16 | 27.5% of annual adjusted gross receipts in excess of | ||||||
| 17 | $25,000,000 but not exceeding $37,500,000; | ||||||
| 18 | 32.5% of annual adjusted gross receipts in excess of | ||||||
| 19 | $37,500,000 but not exceeding $50,000,000; | ||||||
| 20 | 37.5% of annual adjusted gross receipts in excess of | ||||||
| 21 | $50,000,000 but not exceeding $75,000,000; | ||||||
| 22 | 45% of annual adjusted gross receipts in excess of | ||||||
| 23 | $75,000,000 but not exceeding $100,000,000; | ||||||
| 24 | 50% of annual adjusted gross receipts in excess of | ||||||
| 25 | $100,000,000 but not exceeding $250,000,000; | ||||||
| 26 | 70% of annual adjusted gross receipts in excess of | ||||||
| |||||||
| |||||||
| 1 | $250,000,000. | ||||||
| 2 | An amount equal to the amount of wagering taxes collected | ||||||
| 3 | under this subsection (a-3) that are in addition to the amount | ||||||
| 4 | of wagering taxes that would have been collected if the | ||||||
| 5 | wagering tax rates under subsection (a-2) were in effect shall | ||||||
| 6 | be paid into the Common School Fund. | ||||||
| 7 | The privilege tax imposed under this subsection (a-3) | ||||||
| 8 | shall no longer be imposed beginning on the earlier of (i) July | ||||||
| 9 | 1, 2005; (ii) the first date after June 20, 2003 that riverboat | ||||||
| 10 | gambling operations are conducted pursuant to a dormant | ||||||
| 11 | license; or (iii) the first day that riverboat gambling | ||||||
| 12 | operations are conducted under the authority of an owners | ||||||
| 13 | license that is in addition to the 10 owners licenses | ||||||
| 14 | initially authorized under this Act. For the purposes of this | ||||||
| 15 | subsection (a-3), the term "dormant license" means an owners | ||||||
| 16 | license that is authorized by this Act under which no | ||||||
| 17 | riverboat gambling operations are being conducted on June 20, | ||||||
| 18 | 2003. | ||||||
| 19 | (a-4) Beginning on the first day on which the tax imposed | ||||||
| 20 | under subsection (a-3) is no longer imposed and ending upon | ||||||
| 21 | the imposition of the privilege tax under subsection (a-5) of | ||||||
| 22 | this Section, a privilege tax is imposed on persons engaged in | ||||||
| 23 | the business of conducting gambling operations, other than | ||||||
| 24 | licensed managers conducting riverboat gambling operations on | ||||||
| 25 | behalf of the State, based on the adjusted gross receipts | ||||||
| 26 | received by a licensed owner from gambling games authorized | ||||||
| |||||||
| |||||||
| 1 | under this Act at the following rates: | ||||||
| 2 | 15% of annual adjusted gross receipts up to and | ||||||
| 3 | including $25,000,000; | ||||||
| 4 | 22.5% of annual adjusted gross receipts in excess of | ||||||
| 5 | $25,000,000 but not exceeding $50,000,000; | ||||||
| 6 | 27.5% of annual adjusted gross receipts in excess of | ||||||
| 7 | $50,000,000 but not exceeding $75,000,000; | ||||||
| 8 | 32.5% of annual adjusted gross receipts in excess of | ||||||
| 9 | $75,000,000 but not exceeding $100,000,000; | ||||||
| 10 | 37.5% of annual adjusted gross receipts in excess of | ||||||
| 11 | $100,000,000 but not exceeding $150,000,000; | ||||||
| 12 | 45% of annual adjusted gross receipts in excess of | ||||||
| 13 | $150,000,000 but not exceeding $200,000,000; | ||||||
| 14 | 50% of annual adjusted gross receipts in excess of | ||||||
| 15 | $200,000,000. | ||||||
| 16 | For the imposition of the privilege tax in this subsection | ||||||
| 17 | (a-4), amounts paid pursuant to item (1) of subsection (b) of | ||||||
| 18 | Section 56 of the Illinois Horse Racing Act of 1975 shall not | ||||||
| 19 | be included in the determination of adjusted gross receipts. | ||||||
| 20 | (a-5)(1) Beginning on July 1, 2020, a privilege tax is | ||||||
| 21 | imposed on persons engaged in the business of conducting | ||||||
| 22 | gambling operations, other than the owners licensee under | ||||||
| 23 | paragraph (1) of subsection (e-5) of Section 7 and licensed | ||||||
| 24 | managers conducting riverboat gambling operations on behalf of | ||||||
| 25 | the State, based on the adjusted gross receipts received by | ||||||
| 26 | such licensee from the gambling games authorized under this | ||||||
| |||||||
| |||||||
| 1 | Act. The privilege tax for all gambling games other than table | ||||||
| 2 | games, including, but not limited to, slot machines, video | ||||||
| 3 | game of chance gambling, and electronic gambling games shall | ||||||
| 4 | be at the following rates: | ||||||
| 5 | 15% of annual adjusted gross receipts up to and | ||||||
| 6 | including $25,000,000; | ||||||
| 7 | 22.5% of annual adjusted gross receipts in excess of | ||||||
| 8 | $25,000,000 but not exceeding $50,000,000; | ||||||
| 9 | 27.5% of annual adjusted gross receipts in excess of | ||||||
| 10 | $50,000,000 but not exceeding $75,000,000; | ||||||
| 11 | 32.5% of annual adjusted gross receipts in excess of | ||||||
| 12 | $75,000,000 but not exceeding $100,000,000; | ||||||
| 13 | 37.5% of annual adjusted gross receipts in excess of | ||||||
| 14 | $100,000,000 but not exceeding $150,000,000; | ||||||
| 15 | 45% of annual adjusted gross receipts in excess of | ||||||
| 16 | $150,000,000 but not exceeding $200,000,000; | ||||||
| 17 | 50% of annual adjusted gross receipts in excess of | ||||||
| 18 | $200,000,000. | ||||||
| 19 | The privilege tax for table games shall be at the | ||||||
| 20 | following rates: | ||||||
| 21 | 15% of annual adjusted gross receipts up to and | ||||||
| 22 | including $25,000,000; | ||||||
| 23 | 20% of annual adjusted gross receipts in excess of | ||||||
| 24 | $25,000,000. | ||||||
| 25 | For the imposition of the privilege tax in this subsection | ||||||
| 26 | (a-5), amounts paid pursuant to item (1) of subsection (b) of | ||||||
| |||||||
| |||||||
| 1 | Section 56 of the Illinois Horse Racing Act of 1975 shall not | ||||||
| 2 | be included in the determination of adjusted gross receipts. | ||||||
| 3 | (2) Beginning on the first day that an owners licensee | ||||||
| 4 | under paragraph (1) of subsection (e-5) of Section 7 conducts | ||||||
| 5 | gambling operations, either in a temporary facility or a | ||||||
| 6 | permanent facility, a privilege tax is imposed on persons | ||||||
| 7 | engaged in the business of conducting gambling operations | ||||||
| 8 | under paragraph (1) of subsection (e-5) of Section 7, other | ||||||
| 9 | than licensed managers conducting riverboat gambling | ||||||
| 10 | operations on behalf of the State, based on the adjusted gross | ||||||
| 11 | receipts received by such licensee from the gambling games | ||||||
| 12 | authorized under this Act. The privilege tax for all gambling | ||||||
| 13 | games other than table games, including, but not limited to, | ||||||
| 14 | slot machines, video game of chance gambling, and electronic | ||||||
| 15 | gambling games shall be at the following rates: | ||||||
| 16 | 12% of annual adjusted gross receipts up to and | ||||||
| 17 | including $25,000,000 to the State and 10.5% of annual | ||||||
| 18 | adjusted gross receipts up to and including $25,000,000 to | ||||||
| 19 | the City of Chicago; | ||||||
| 20 | 16% of annual adjusted gross receipts in excess of | ||||||
| 21 | $25,000,000 but not exceeding $50,000,000 to the State and | ||||||
| 22 | 14% of annual adjusted gross receipts in excess of | ||||||
| 23 | $25,000,000 but not exceeding $50,000,000 to the City of | ||||||
| 24 | Chicago; | ||||||
| 25 | 20.1% of annual adjusted gross receipts in excess of | ||||||
| 26 | $50,000,000 but not exceeding $75,000,000 to the State and | ||||||
| |||||||
| |||||||
| 1 | 17.4% of annual adjusted gross receipts in excess of | ||||||
| 2 | $50,000,000 but not exceeding $75,000,000 to the City of | ||||||
| 3 | Chicago; | ||||||
| 4 | 21.4% of annual adjusted gross receipts in excess of | ||||||
| 5 | $75,000,000 but not exceeding $100,000,000 to the State | ||||||
| 6 | and 18.6% of annual adjusted gross receipts in excess of | ||||||
| 7 | $75,000,000 but not exceeding $100,000,000 to the City of | ||||||
| 8 | Chicago; | ||||||
| 9 | 22.7% of annual adjusted gross receipts in excess of | ||||||
| 10 | $100,000,000 but not exceeding $150,000,000 to the State | ||||||
| 11 | and 19.8% of annual adjusted gross receipts in excess of | ||||||
| 12 | $100,000,000 but not exceeding $150,000,000 to the City of | ||||||
| 13 | Chicago; | ||||||
| 14 | 24.1% of annual adjusted gross receipts in excess of | ||||||
| 15 | $150,000,000 but not exceeding $225,000,000 to the State | ||||||
| 16 | and 20.9% of annual adjusted gross receipts in excess of | ||||||
| 17 | $150,000,000 but not exceeding $225,000,000 to the City of | ||||||
| 18 | Chicago; | ||||||
| 19 | 26.8% of annual adjusted gross receipts in excess of | ||||||
| 20 | $225,000,000 but not exceeding $1,000,000,000 to the State | ||||||
| 21 | and 23.2% of annual adjusted gross receipts in excess of | ||||||
| 22 | $225,000,000 but not exceeding $1,000,000,000 to the City | ||||||
| 23 | of Chicago; | ||||||
| 24 | 40% of annual adjusted gross receipts in excess of | ||||||
| 25 | $1,000,000,000 to the State and 34.7% of annual gross | ||||||
| 26 | receipts in excess of $1,000,000,000 to the City of | ||||||
| |||||||
| |||||||
| 1 | Chicago. | ||||||
| 2 | The privilege tax for table games shall be at the | ||||||
| 3 | following rates: | ||||||
| 4 | 8.1% of annual adjusted gross receipts up to and | ||||||
| 5 | including $25,000,000 to the State and 6.9% of annual | ||||||
| 6 | adjusted gross receipts up to and including $25,000,000 to | ||||||
| 7 | the City of Chicago; | ||||||
| 8 | 10.7% of annual adjusted gross receipts in excess of | ||||||
| 9 | $25,000,000 but not exceeding $75,000,000 to the State and | ||||||
| 10 | 9.3% of annual adjusted gross receipts in excess of | ||||||
| 11 | $25,000,000 but not exceeding $75,000,000 to the City of | ||||||
| 12 | Chicago; | ||||||
| 13 | 11.2% of annual adjusted gross receipts in excess of | ||||||
| 14 | $75,000,000 but not exceeding $175,000,000 to the State | ||||||
| 15 | and 9.8% of annual adjusted gross receipts in excess of | ||||||
| 16 | $75,000,000 but not exceeding $175,000,000 to the City of | ||||||
| 17 | Chicago; | ||||||
| 18 | 13.5% of annual adjusted gross receipts in excess of | ||||||
| 19 | $175,000,000 but not exceeding $225,000,000 to the State | ||||||
| 20 | and 11.5% of annual adjusted gross receipts in excess of | ||||||
| 21 | $175,000,000 but not exceeding $225,000,000 to the City of | ||||||
| 22 | Chicago; | ||||||
| 23 | 15.1% of annual adjusted gross receipts in excess of | ||||||
| 24 | $225,000,000 but not exceeding $275,000,000 to the State | ||||||
| 25 | and 12.9% of annual adjusted gross receipts in excess of | ||||||
| 26 | $225,000,000 but not exceeding $275,000,000 to the City of | ||||||
| |||||||
| |||||||
| 1 | Chicago; | ||||||
| 2 | 16.2% of annual adjusted gross receipts in excess of | ||||||
| 3 | $275,000,000 but not exceeding $375,000,000 to the State | ||||||
| 4 | and 13.8% of annual adjusted gross receipts in excess of | ||||||
| 5 | $275,000,000 but not exceeding $375,000,000 to the City of | ||||||
| 6 | Chicago; | ||||||
| 7 | 18.9% of annual adjusted gross receipts in excess of | ||||||
| 8 | $375,000,000 to the State and 16.1% of annual gross | ||||||
| 9 | receipts in excess of $375,000,000 to the City of Chicago. | ||||||
| 10 | For the imposition of the privilege tax in this subsection | ||||||
| 11 | (a-5), amounts paid pursuant to item (1) of subsection (b) of | ||||||
| 12 | Section 56 of the Illinois Horse Racing Act of 1975 shall not | ||||||
| 13 | be included in the determination of adjusted gross receipts. | ||||||
| 14 | (3) Notwithstanding the provisions of this subsection | ||||||
| 15 | (a-5), for the first 10 years that the privilege tax is imposed | ||||||
| 16 | under this subsection (a-5) or until the year preceding the | ||||||
| 17 | calendar year in which paragraph (4) becomes operative, | ||||||
| 18 | whichever occurs first, the privilege tax shall be imposed on | ||||||
| 19 | the modified annual adjusted gross receipts of a riverboat or | ||||||
| 20 | casino conducting gambling operations in the City of East St. | ||||||
| 21 | Louis, unless: | ||||||
| 22 | (1) the riverboat or casino fails to employ at least | ||||||
| 23 | 450 people, except no minimum employment shall be required | ||||||
| 24 | during 2020 and 2021 or during periods that the riverboat | ||||||
| 25 | or casino is closed on orders of State officials for | ||||||
| 26 | public health emergencies or other emergencies not caused | ||||||
| |||||||
| |||||||
| 1 | by the riverboat or casino; | ||||||
| 2 | (2) the riverboat or casino fails to maintain | ||||||
| 3 | operations in a manner consistent with this Act or is not a | ||||||
| 4 | viable riverboat or casino subject to the approval of the | ||||||
| 5 | Board; or | ||||||
| 6 | (3) the owners licensee is not an entity in which | ||||||
| 7 | employees participate in an employee stock ownership plan | ||||||
| 8 | or in which the owners licensee sponsors a 401(k) | ||||||
| 9 | retirement plan and makes a matching employer contribution | ||||||
| 10 | equal to at least one-quarter of the first 12% or one-half | ||||||
| 11 | of the first 6% of each participating employee's | ||||||
| 12 | contribution, not to exceed any limitations under federal | ||||||
| 13 | laws and regulations. | ||||||
| 14 | (4) Notwithstanding the provisions of this subsection | ||||||
| 15 | (a-5), for 10 calendar years beginning in the year that | ||||||
| 16 | gambling operations commence either in a temporary or | ||||||
| 17 | permanent facility at an organization gaming facility located | ||||||
| 18 | in the City of Collinsville if the facility commences | ||||||
| 19 | operations within 3 years of the effective date of the changes | ||||||
| 20 | made to this Section by this amendatory Act of the 103rd | ||||||
| 21 | General Assembly, the privilege tax imposed under this | ||||||
| 22 | subsection (a-5) on a riverboat or casino conducting gambling | ||||||
| 23 | operations in the City of East St. Louis shall be reduced, if | ||||||
| 24 | applicable, by an amount equal to the difference in adjusted | ||||||
| 25 | gross receipts for the 2022 calendar year less the current | ||||||
| 26 | year's adjusted gross receipts, unless: | ||||||
| |||||||
| |||||||
| 1 | (A) the riverboat or casino fails to employ at least | ||||||
| 2 | 350 people, except that no minimum employment shall be | ||||||
| 3 | required during periods that the riverboat or casino is | ||||||
| 4 | closed on orders of State officials for public health | ||||||
| 5 | emergencies or other emergencies not caused by the | ||||||
| 6 | riverboat or casino; | ||||||
| 7 | (B) the riverboat or casino fails to maintain | ||||||
| 8 | operations in a manner consistent with this Act or is not a | ||||||
| 9 | viable riverboat or casino subject to the approval of the | ||||||
| 10 | Board; or | ||||||
| 11 | (C) the riverboat or casino fails to submit audited | ||||||
| 12 | financial statements to the Board prepared by an | ||||||
| 13 | accounting firm that has been preapproved by the Board and | ||||||
| 14 | such statements were prepared in accordance with the | ||||||
| 15 | provisions of the Financial Accounting Standards Board | ||||||
| 16 | Accounting Standards Codification under nongovernmental | ||||||
| 17 | accounting principles generally accepted in the United | ||||||
| 18 | States. | ||||||
| 19 | As used in this subsection (a-5), "modified annual | ||||||
| 20 | adjusted gross receipts" means: | ||||||
| 21 | (A) for calendar year 2020, the annual adjusted gross | ||||||
| 22 | receipts for the current year minus the difference between | ||||||
| 23 | an amount equal to the average annual adjusted gross | ||||||
| 24 | receipts from a riverboat or casino conducting gambling | ||||||
| 25 | operations in the City of East St. Louis for 2014, 2015, | ||||||
| 26 | 2016, 2017, and 2018 and the annual adjusted gross | ||||||
| |||||||
| |||||||
| 1 | receipts for 2018; | ||||||
| 2 | (B) for calendar year 2021, the annual adjusted gross | ||||||
| 3 | receipts for the current year minus the difference between | ||||||
| 4 | an amount equal to the average annual adjusted gross | ||||||
| 5 | receipts from a riverboat or casino conducting gambling | ||||||
| 6 | operations in the City of East St. Louis for 2014, 2015, | ||||||
| 7 | 2016, 2017, and 2018 and the annual adjusted gross | ||||||
| 8 | receipts for 2019; and | ||||||
| 9 | (C) for calendar years 2022 through 2029, the annual | ||||||
| 10 | adjusted gross receipts for the current year minus the | ||||||
| 11 | difference between an amount equal to the average annual | ||||||
| 12 | adjusted gross receipts from a riverboat or casino | ||||||
| 13 | conducting gambling operations in the City of East St. | ||||||
| 14 | Louis for 3 years preceding the current year and the | ||||||
| 15 | annual adjusted gross receipts for the immediately | ||||||
| 16 | preceding year. | ||||||
| 17 | (a-6) From June 28, 2019 (the effective date of Public Act | ||||||
| 18 | 101-31) until June 30, 2023, an owners licensee that conducted | ||||||
| 19 | gambling operations prior to January 1, 2011 shall receive a | ||||||
| 20 | dollar-for-dollar credit against the tax imposed under this | ||||||
| 21 | Section for any renovation or construction costs paid by the | ||||||
| 22 | owners licensee, but in no event shall the credit exceed | ||||||
| 23 | $2,000,000. | ||||||
| 24 | Additionally, from June 28, 2019 (the effective date of | ||||||
| 25 | Public Act 101-31) until December 31, 2024, an owners licensee | ||||||
| 26 | that (i) is located within 15 miles of the Missouri border, and | ||||||
| |||||||
| |||||||
| 1 | (ii) has at least 3 riverboats, casinos, or their equivalent | ||||||
| 2 | within a 45-mile radius, may be authorized to relocate to a new | ||||||
| 3 | location with the approval of both the unit of local | ||||||
| 4 | government designated as the home dock and the Board, so long | ||||||
| 5 | as the new location is within the same unit of local government | ||||||
| 6 | and no more than 3 miles away from its original location. Such | ||||||
| 7 | owners licensee shall receive a credit against the tax imposed | ||||||
| 8 | under this Section equal to 8% of the total project costs, as | ||||||
| 9 | approved by the Board, for any renovation or construction | ||||||
| 10 | costs paid by the owners licensee for the construction of the | ||||||
| 11 | new facility, provided that the new facility is operational by | ||||||
| 12 | July 1, 2024. In determining whether or not to approve a | ||||||
| 13 | relocation, the Board must consider the extent to which the | ||||||
| 14 | relocation will diminish the gaming revenues received by other | ||||||
| 15 | Illinois gaming facilities. | ||||||
| 16 | (a-7) Beginning in the initial adjustment year and through | ||||||
| 17 | the final adjustment year, if the total obligation imposed | ||||||
| 18 | pursuant to either subsection (a-5) or (a-6) will result in an | ||||||
| 19 | owners licensee receiving less after-tax adjusted gross | ||||||
| 20 | receipts than it received in calendar year 2018, then the | ||||||
| 21 | total amount of privilege taxes that the owners licensee is | ||||||
| 22 | required to pay for that calendar year shall be reduced to the | ||||||
| 23 | extent necessary so that the after-tax adjusted gross receipts | ||||||
| 24 | in that calendar year equals the after-tax adjusted gross | ||||||
| 25 | receipts in calendar year 2018, but the privilege tax | ||||||
| 26 | reduction shall not exceed the annual adjustment cap. If | ||||||
| |||||||
| |||||||
| 1 | pursuant to this subsection (a-7), the total obligation | ||||||
| 2 | imposed pursuant to either subsection (a-5) or (a-6) shall be | ||||||
| 3 | reduced, then the owners licensee shall not receive a refund | ||||||
| 4 | from the State at the end of the subject calendar year but | ||||||
| 5 | instead shall be able to apply that amount as a credit against | ||||||
| 6 | any payments it owes to the State in the following calendar | ||||||
| 7 | year to satisfy its total obligation under either subsection | ||||||
| 8 | (a-5) or (a-6). The credit for the final adjustment year shall | ||||||
| 9 | occur in the calendar year following the final adjustment | ||||||
| 10 | year. | ||||||
| 11 | If an owners licensee that conducted gambling operations | ||||||
| 12 | prior to January 1, 2019 expands its riverboat or casino, | ||||||
| 13 | including, but not limited to, with respect to its gaming | ||||||
| 14 | floor, additional non-gaming amenities such as restaurants, | ||||||
| 15 | bars, and hotels and other additional facilities, and incurs | ||||||
| 16 | construction and other costs related to such expansion from | ||||||
| 17 | June 28, 2019 (the effective date of Public Act 101-31) until | ||||||
| 18 | June 28, 2024 (the 5th anniversary of the effective date of | ||||||
| 19 | Public Act 101-31), then for each $15,000,000 spent for any | ||||||
| 20 | such construction or other costs related to expansion paid by | ||||||
| 21 | the owners licensee, the final adjustment year shall be | ||||||
| 22 | extended by one year and the annual adjustment cap shall | ||||||
| 23 | increase by 0.2% of adjusted gross receipts during each | ||||||
| 24 | calendar year until and including the final adjustment year. | ||||||
| 25 | No further modifications to the final adjustment year or | ||||||
| 26 | annual adjustment cap shall be made after $75,000,000 is | ||||||
| |||||||
| |||||||
| 1 | incurred in construction or other costs related to expansion | ||||||
| 2 | so that the final adjustment year shall not extend beyond the | ||||||
| 3 | 9th calendar year after the initial adjustment year, not | ||||||
| 4 | including the initial adjustment year, and the annual | ||||||
| 5 | adjustment cap shall not exceed 4% of adjusted gross receipts | ||||||
| 6 | in a particular calendar year. Construction and other costs | ||||||
| 7 | related to expansion shall include all project related costs, | ||||||
| 8 | including, but not limited to, all hard and soft costs, | ||||||
| 9 | financing costs, on or off-site ground, road or utility work, | ||||||
| 10 | cost of gaming equipment and all other personal property, | ||||||
| 11 | initial fees assessed for each incremental gaming position, | ||||||
| 12 | and the cost of incremental land acquired for such expansion. | ||||||
| 13 | Soft costs shall include, but not be limited to, legal fees, | ||||||
| 14 | architect, engineering and design costs, other consultant | ||||||
| 15 | costs, insurance cost, permitting costs, and pre-opening costs | ||||||
| 16 | related to the expansion, including, but not limited to, any | ||||||
| 17 | of the following: marketing, real estate taxes, personnel, | ||||||
| 18 | training, travel and out-of-pocket expenses, supply, | ||||||
| 19 | inventory, and other costs, and any other project related soft | ||||||
| 20 | costs. | ||||||
| 21 | To be eligible for the tax credits in subsection (a-6), | ||||||
| 22 | all construction contracts shall include a requirement that | ||||||
| 23 | the contractor enter into a project labor agreement with the | ||||||
| 24 | building and construction trades council with geographic | ||||||
| 25 | jurisdiction of the location of the proposed gaming facility. | ||||||
| 26 | Notwithstanding any other provision of this subsection | ||||||
| |||||||
| |||||||
| 1 | (a-7), this subsection (a-7) does not apply to an owners | ||||||
| 2 | licensee unless such owners licensee spends at least | ||||||
| 3 | $15,000,000 on construction and other costs related to its | ||||||
| 4 | expansion, excluding the initial fees assessed for each | ||||||
| 5 | incremental gaming position. | ||||||
| 6 | This subsection (a-7) does not apply to owners licensees | ||||||
| 7 | authorized pursuant to subsection (e-5) of Section 7 of this | ||||||
| 8 | Act. | ||||||
| 9 | For purposes of this subsection (a-7): | ||||||
| 10 | "Building and construction trades council" means any | ||||||
| 11 | organization representing multiple construction entities that | ||||||
| 12 | are monitoring or attentive to compliance with public or | ||||||
| 13 | workers' safety laws, wage and hour requirements, or other | ||||||
| 14 | statutory requirements or that are making or maintaining | ||||||
| 15 | collective bargaining agreements. | ||||||
| 16 | "Initial adjustment year" means the year commencing on | ||||||
| 17 | January 1 of the calendar year immediately following the | ||||||
| 18 | earlier of the following: | ||||||
| 19 | (1) the commencement of gambling operations, either in | ||||||
| 20 | a temporary or permanent facility, with respect to the | ||||||
| 21 | owners license authorized under paragraph (1) of | ||||||
| 22 | subsection (e-5) of Section 7 of this Act; or | ||||||
| 23 | (2) June 28, 2021 (24 months after the effective date | ||||||
| 24 | of Public Act 101-31); | ||||||
| 25 | provided the initial adjustment year shall not commence | ||||||
| 26 | earlier than June 28, 2020 (12 months after the effective date | ||||||
| |||||||
| |||||||
| 1 | of Public Act 101-31). | ||||||
| 2 | "Final adjustment year" means the 2nd calendar year after | ||||||
| 3 | the initial adjustment year, not including the initial | ||||||
| 4 | adjustment year, and as may be extended further as described | ||||||
| 5 | in this subsection (a-7). | ||||||
| 6 | "Annual adjustment cap" means 3% of adjusted gross | ||||||
| 7 | receipts in a particular calendar year, and as may be | ||||||
| 8 | increased further as otherwise described in this subsection | ||||||
| 9 | (a-7). | ||||||
| 10 | (a-8) Riverboat gambling operations conducted by a | ||||||
| 11 | licensed manager on behalf of the State are not subject to the | ||||||
| 12 | tax imposed under this Section. | ||||||
| 13 | (a-9) Beginning on January 1, 2020, the calculation of | ||||||
| 14 | gross receipts or adjusted gross receipts, for the purposes of | ||||||
| 15 | this Section, for a riverboat, a casino, or an organization | ||||||
| 16 | gaming facility shall not include the dollar amount of | ||||||
| 17 | non-cashable vouchers, coupons, and electronic promotions | ||||||
| 18 | redeemed by wagerers upon the riverboat, in the casino, or in | ||||||
| 19 | the organization gaming facility up to and including an amount | ||||||
| 20 | not to exceed 20% of a riverboat's, a casino's, or an | ||||||
| 21 | organization gaming facility's adjusted gross receipts. | ||||||
| 22 | The Illinois Gaming Board shall submit to the General | ||||||
| 23 | Assembly a comprehensive report no later than March 31, 2023 | ||||||
| 24 | detailing, at a minimum, the effect of removing non-cashable | ||||||
| 25 | vouchers, coupons, and electronic promotions from this | ||||||
| 26 | calculation on net gaming revenues to the State in calendar | ||||||
| |||||||
| |||||||
| 1 | years 2020 through 2022, the increase or reduction in wagerers | ||||||
| 2 | as a result of removing non-cashable vouchers, coupons, and | ||||||
| 3 | electronic promotions from this calculation, the effect of the | ||||||
| 4 | tax rates in subsection (a-5) on net gaming revenues to this | ||||||
| 5 | State, and proposed modifications to the calculation. | ||||||
| 6 | (a-10) The taxes imposed by this Section shall be paid by | ||||||
| 7 | the licensed owner or the organization gaming licensee to the | ||||||
| 8 | Board not later than 5:00 o'clock p.m. of the day after the day | ||||||
| 9 | when the wagers were made. | ||||||
| 10 | (a-15) If the privilege tax imposed under subsection (a-3) | ||||||
| 11 | is no longer imposed pursuant to item (i) of the last paragraph | ||||||
| 12 | of subsection (a-3), then by June 15 of each year, each owners | ||||||
| 13 | licensee, other than an owners licensee that admitted | ||||||
| 14 | 1,000,000 persons or fewer in calendar year 2004, must, in | ||||||
| 15 | addition to the payment of all amounts otherwise due under | ||||||
| 16 | this Section, pay to the Board a reconciliation payment in the | ||||||
| 17 | amount, if any, by which the licensed owner's base amount | ||||||
| 18 | exceeds the amount of net privilege tax paid by the licensed | ||||||
| 19 | owner to the Board in the then current State fiscal year. A | ||||||
| 20 | licensed owner's net privilege tax obligation due for the | ||||||
| 21 | balance of the State fiscal year shall be reduced up to the | ||||||
| 22 | total of the amount paid by the licensed owner in its June 15 | ||||||
| 23 | reconciliation payment. The obligation imposed by this | ||||||
| 24 | subsection (a-15) is binding on any person, firm, corporation, | ||||||
| 25 | or other entity that acquires an ownership interest in any | ||||||
| 26 | such owners license. The obligation imposed under this | ||||||
| |||||||
| |||||||
| 1 | subsection (a-15) terminates on the earliest of: (i) July 1, | ||||||
| 2 | 2007, (ii) the first day after August 23, 2005 (the effective | ||||||
| 3 | date of Public Act 94-673) that riverboat gambling operations | ||||||
| 4 | are conducted pursuant to a dormant license, (iii) the first | ||||||
| 5 | day that riverboat gambling operations are conducted under the | ||||||
| 6 | authority of an owners license that is in addition to the 10 | ||||||
| 7 | owners licenses initially authorized under this Act, or (iv) | ||||||
| 8 | the first day that a licensee under the Illinois Horse Racing | ||||||
| 9 | Act of 1975 conducts gaming operations with slot machines or | ||||||
| 10 | other electronic gaming devices. The Board must reduce the | ||||||
| 11 | obligation imposed under this subsection (a-15) by an amount | ||||||
| 12 | the Board deems reasonable for any of the following reasons: | ||||||
| 13 | (A) an act or acts of God, (B) an act of bioterrorism or | ||||||
| 14 | terrorism or a bioterrorism or terrorism threat that was | ||||||
| 15 | investigated by a law enforcement agency, or (C) a condition | ||||||
| 16 | beyond the control of the owners licensee that does not result | ||||||
| 17 | from any act or omission by the owners licensee or any of its | ||||||
| 18 | agents and that poses a hazardous threat to the health and | ||||||
| 19 | safety of patrons. If an owners licensee pays an amount in | ||||||
| 20 | excess of its liability under this Section, the Board shall | ||||||
| 21 | apply the overpayment to future payments required under this | ||||||
| 22 | Section. | ||||||
| 23 | For purposes of this subsection (a-15): | ||||||
| 24 | "Act of God" means an incident caused by the operation of | ||||||
| 25 | an extraordinary force that cannot be foreseen, that cannot be | ||||||
| 26 | avoided by the exercise of due care, and for which no person | ||||||
| |||||||
| |||||||
| 1 | can be held liable. | ||||||
| 2 | "Base amount" means the following: | ||||||
| 3 | For a riverboat in Alton, $31,000,000. | ||||||
| 4 | For a riverboat in East Peoria, $43,000,000. | ||||||
| 5 | For the Empress riverboat in Joliet, $86,000,000. | ||||||
| 6 | For a riverboat in Metropolis, $45,000,000. | ||||||
| 7 | For the Harrah's riverboat in Joliet, $114,000,000. | ||||||
| 8 | For a riverboat in Aurora, $86,000,000. | ||||||
| 9 | For a riverboat in East St. Louis, $48,500,000. | ||||||
| 10 | For a riverboat in Elgin, $198,000,000. | ||||||
| 11 | "Dormant license" has the meaning ascribed to it in | ||||||
| 12 | subsection (a-3). | ||||||
| 13 | "Net privilege tax" means all privilege taxes paid by a | ||||||
| 14 | licensed owner to the Board under this Section, less all | ||||||
| 15 | payments made from the State Gaming Fund pursuant to | ||||||
| 16 | subsection (b) of this Section. | ||||||
| 17 | The changes made to this subsection (a-15) by Public Act | ||||||
| 18 | 94-839 are intended to restate and clarify the intent of | ||||||
| 19 | Public Act 94-673 with respect to the amount of the payments | ||||||
| 20 | required to be made under this subsection by an owners | ||||||
| 21 | licensee to the Board. | ||||||
| 22 | (b) From the tax revenue from riverboat or casino gambling | ||||||
| 23 | deposited in the State Gaming Fund under this Section, an | ||||||
| 24 | amount equal to 5% of adjusted gross receipts generated by a | ||||||
| 25 | riverboat or a casino, other than a riverboat or casino | ||||||
| 26 | designated in paragraph (1), (3), or (4) of subsection (e-5) | ||||||
| |||||||
| |||||||
| 1 | of Section 7, shall be paid monthly, subject to appropriation | ||||||
| 2 | by the General Assembly, to the unit of local government in | ||||||
| 3 | which the casino is located or that is designated as the home | ||||||
| 4 | dock of the riverboat. Notwithstanding anything to the | ||||||
| 5 | contrary, beginning on the first day that an owners licensee | ||||||
| 6 | under paragraph (1), (2), (3), (4), (5), or (6) of subsection | ||||||
| 7 | (e-5) of Section 7 conducts gambling operations, either in a | ||||||
| 8 | temporary facility or a permanent facility, and for 2 years | ||||||
| 9 | thereafter, a unit of local government designated as the home | ||||||
| 10 | dock of a riverboat whose license was issued before January 1, | ||||||
| 11 | 2019, other than a riverboat conducting gambling operations in | ||||||
| 12 | the City of East St. Louis, shall not receive less under this | ||||||
| 13 | subsection (b) than the amount the unit of local government | ||||||
| 14 | received under this subsection (b) in calendar year 2018. | ||||||
| 15 | Notwithstanding anything to the contrary and because the City | ||||||
| 16 | of East St. Louis is a financially distressed city, beginning | ||||||
| 17 | on the first day that an owners licensee under paragraph (1), | ||||||
| 18 | (2), (3), (4), (5), or (6) of subsection (e-5) of Section 7 | ||||||
| 19 | conducts gambling operations, either in a temporary facility | ||||||
| 20 | or a permanent facility, and for 10 years thereafter, a unit of | ||||||
| 21 | local government designated as the home dock of a riverboat | ||||||
| 22 | conducting gambling operations in the City of East St. Louis | ||||||
| 23 | shall not receive less under this subsection (b) than the | ||||||
| 24 | amount the unit of local government received under this | ||||||
| 25 | subsection (b) in calendar year 2018. | ||||||
| 26 | From the tax revenue deposited in the State Gaming Fund | ||||||
| |||||||
| |||||||
| 1 | pursuant to riverboat or casino gambling operations conducted | ||||||
| 2 | by a licensed manager on behalf of the State, an amount equal | ||||||
| 3 | to 5% of adjusted gross receipts generated pursuant to those | ||||||
| 4 | riverboat or casino gambling operations shall be paid monthly, | ||||||
| 5 | subject to appropriation by the General Assembly, to the unit | ||||||
| 6 | of local government that is designated as the home dock of the | ||||||
| 7 | riverboat upon which those riverboat gambling operations are | ||||||
| 8 | conducted or in which the casino is located. | ||||||
| 9 | From the tax revenue from riverboat or casino gambling | ||||||
| 10 | deposited in the State Gaming Fund under this Section, an | ||||||
| 11 | amount equal to 5% of the adjusted gross receipts generated by | ||||||
| 12 | a riverboat designated in paragraph (3) of subsection (e-5) of | ||||||
| 13 | Section 7 shall be divided and remitted monthly, subject to | ||||||
| 14 | appropriation, as follows: 70% to Waukegan, 10% to Park City, | ||||||
| 15 | 15% to North Chicago, and 5% to Lake County. | ||||||
| 16 | From the tax revenue from riverboat or casino gambling | ||||||
| 17 | deposited in the State Gaming Fund under this Section, an | ||||||
| 18 | amount equal to 5% of the adjusted gross receipts generated by | ||||||
| 19 | a riverboat designated in paragraph (4) of subsection (e-5) of | ||||||
| 20 | Section 7 shall be remitted monthly, subject to appropriation, | ||||||
| 21 | as follows: 70% to the City of Rockford, 5% to the City of | ||||||
| 22 | Loves Park, 5% to the Village of Machesney, and 20% to | ||||||
| 23 | Winnebago County. | ||||||
| 24 | From the tax revenue from riverboat or casino gambling | ||||||
| 25 | deposited in the State Gaming Fund under this Section, an | ||||||
| 26 | amount equal to 5% of the adjusted gross receipts generated by | ||||||
| |||||||
| |||||||
| 1 | a riverboat designated in paragraph (5) of subsection (e-5) of | ||||||
| 2 | Section 7 shall be remitted monthly, subject to appropriation, | ||||||
| 3 | as follows: 2% to the unit of local government in which the | ||||||
| 4 | riverboat or casino is located, and 3% shall be distributed: | ||||||
| 5 | (A) in accordance with a regional capital development plan | ||||||
| 6 | entered into by the following communities: Village of Beecher, | ||||||
| 7 | City of Blue Island, Village of Burnham, City of Calumet City, | ||||||
| 8 | Village of Calumet Park, City of Chicago Heights, City of | ||||||
| 9 | Country Club Hills, Village of Crestwood, Village of Crete, | ||||||
| 10 | Village of Dixmoor, Village of Dolton, Village of East Hazel | ||||||
| 11 | Crest, Village of Flossmoor, Village of Ford Heights, Village | ||||||
| 12 | of Glenwood, City of Harvey, Village of Hazel Crest, Village | ||||||
| 13 | of Homewood, Village of Lansing, Village of Lynwood, City of | ||||||
| 14 | Markham, Village of Matteson, Village of Midlothian, Village | ||||||
| 15 | of Monee, City of Oak Forest, Village of Olympia Fields, | ||||||
| 16 | Village of Orland Hills, Village of Orland Park, City of Palos | ||||||
| 17 | Heights, Village of Park Forest, Village of Phoenix, Village | ||||||
| 18 | of Posen, Village of Richton Park, Village of Riverdale, | ||||||
| 19 | Village of Robbins, Village of Sauk Village, Village of South | ||||||
| 20 | Chicago Heights, Village of South Holland, Village of Steger, | ||||||
| 21 | Village of Thornton, Village of Tinley Park, Village of | ||||||
| 22 | University Park, and Village of Worth; or (B) if no regional | ||||||
| 23 | capital development plan exists, equally among the communities | ||||||
| 24 | listed in item (A) to be used for capital expenditures or | ||||||
| 25 | public pension payments, or both. | ||||||
| 26 | Units of local government may refund any portion of the | ||||||
| |||||||
| |||||||
| 1 | payment that they receive pursuant to this subsection (b) to | ||||||
| 2 | the riverboat or casino. | ||||||
| 3 | (b-4) Beginning on the first day a licensee under | ||||||
| 4 | subsection (e-5) of Section 7 conducts gambling operations or | ||||||
| 5 | 30 days after the effective date of this amendatory Act of the | ||||||
| 6 | 103rd General Assembly, whichever is sooner, either in a | ||||||
| 7 | temporary facility or a permanent facility, and ending on July | ||||||
| 8 | 31, 2042, from the tax revenue deposited in the State Gaming | ||||||
| 9 | Fund under this Section, $5,000,000 shall be paid annually, | ||||||
| 10 | subject to appropriation, to the host municipality of that | ||||||
| 11 | owners licensee of a license issued or re-issued pursuant to | ||||||
| 12 | Section 7.1 of this Act before January 1, 2012. Payments | ||||||
| 13 | received by the host municipality pursuant to this subsection | ||||||
| 14 | (b-4) may not be shared with any other unit of local | ||||||
| 15 | government. | ||||||
| 16 | (b-5) Beginning on June 28, 2019 (the effective date of | ||||||
| 17 | Public Act 101-31), from the tax revenue deposited in the | ||||||
| 18 | State Gaming Fund under this Section, an amount equal to 3% of | ||||||
| 19 | adjusted gross receipts generated by each organization gaming | ||||||
| 20 | facility located outside Madison County shall be paid monthly, | ||||||
| 21 | subject to appropriation by the General Assembly, to a | ||||||
| 22 | municipality other than the Village of Stickney in which each | ||||||
| 23 | organization gaming facility is located or, if the | ||||||
| 24 | organization gaming facility is not located within a | ||||||
| 25 | municipality, to the county in which the organization gaming | ||||||
| 26 | facility is located, except as otherwise provided in this | ||||||
| |||||||
| |||||||
| 1 | Section. From the tax revenue deposited in the State Gaming | ||||||
| 2 | Fund under this Section, an amount equal to 3% of adjusted | ||||||
| 3 | gross receipts generated by an organization gaming facility | ||||||
| 4 | located in the Village of Stickney shall be paid monthly, | ||||||
| 5 | subject to appropriation by the General Assembly, as follows: | ||||||
| 6 | 25% to the Village of Stickney, 5% to the City of Berwyn, 50% | ||||||
| 7 | to the Town of Cicero, and 20% to the Stickney Public Health | ||||||
| 8 | District. | ||||||
| 9 | From the tax revenue deposited in the State Gaming Fund | ||||||
| 10 | under this Section, an amount equal to 5% of adjusted gross | ||||||
| 11 | receipts generated by an organization gaming facility located | ||||||
| 12 | in the City of Collinsville shall be paid monthly, subject to | ||||||
| 13 | appropriation by the General Assembly, as follows: 30% to the | ||||||
| 14 | City of Alton, 30% to the City of East St. Louis, and 40% to | ||||||
| 15 | the City of Collinsville. | ||||||
| 16 | Municipalities and counties may refund any portion of the | ||||||
| 17 | payment that they receive pursuant to this subsection (b-5) to | ||||||
| 18 | the organization gaming facility. | ||||||
| 19 | (b-6) Beginning on June 28, 2019 (the effective date of | ||||||
| 20 | Public Act 101-31), from the tax revenue deposited in the | ||||||
| 21 | State Gaming Fund under this Section, an amount equal to 2% of | ||||||
| 22 | adjusted gross receipts generated by an organization gaming | ||||||
| 23 | facility located outside Madison County shall be paid monthly, | ||||||
| 24 | subject to appropriation by the General Assembly, to the | ||||||
| 25 | county in which the organization gaming facility is located | ||||||
| 26 | for the purposes of its criminal justice system or health care | ||||||
| |||||||
| |||||||
| 1 | system. | ||||||
| 2 | Counties may refund any portion of the payment that they | ||||||
| 3 | receive pursuant to this subsection (b-6) to the organization | ||||||
| 4 | gaming facility. | ||||||
| 5 | (b-7) From the tax revenue from the organization gaming | ||||||
| 6 | licensee located in one of the following townships of Cook | ||||||
| 7 | County: Bloom, Bremen, Calumet, Orland, Rich, Thornton, or | ||||||
| 8 | Worth, an amount equal to 5% of the adjusted gross receipts | ||||||
| 9 | generated by that organization gaming licensee shall be | ||||||
| 10 | remitted monthly, subject to appropriation, as follows: 2% to | ||||||
| 11 | the unit of local government in which the organization gaming | ||||||
| 12 | licensee is located, and 3% shall be distributed: (A) in | ||||||
| 13 | accordance with a regional capital development plan entered | ||||||
| 14 | into by the following communities: Village of Beecher, City of | ||||||
| 15 | Blue Island, Village of Burnham, City of Calumet City, Village | ||||||
| 16 | of Calumet Park, City of Chicago Heights, City of Country Club | ||||||
| 17 | Hills, Village of Crestwood, Village of Crete, Village of | ||||||
| 18 | Dixmoor, Village of Dolton, Village of East Hazel Crest, | ||||||
| 19 | Village of Flossmoor, Village of Ford Heights, Village of | ||||||
| 20 | Glenwood, City of Harvey, Village of Hazel Crest, Village of | ||||||
| 21 | Homewood, Village of Lansing, Village of Lynwood, City of | ||||||
| 22 | Markham, Village of Matteson, Village of Midlothian, Village | ||||||
| 23 | of Monee, City of Oak Forest, Village of Olympia Fields, | ||||||
| 24 | Village of Orland Hills, Village of Orland Park, City of Palos | ||||||
| 25 | Heights, Village of Park Forest, Village of Phoenix, Village | ||||||
| 26 | of Posen, Village of Richton Park, Village of Riverdale, | ||||||
| |||||||
| |||||||
| 1 | Village of Robbins, Village of Sauk Village, Village of South | ||||||
| 2 | Chicago Heights, Village of South Holland, Village of Steger, | ||||||
| 3 | Village of Thornton, Village of Tinley Park, Village of | ||||||
| 4 | University Park, and Village of Worth; or (B) if no regional | ||||||
| 5 | capital development plan exists, equally among the communities | ||||||
| 6 | listed in item (A) to be used for capital expenditures or | ||||||
| 7 | public pension payments, or both. | ||||||
| 8 | (b-8) In lieu of the payments under subsection (b) of this | ||||||
| 9 | Section, from the tax revenue deposited in the State Gaming | ||||||
| 10 | Fund pursuant to riverboat or casino gambling operations | ||||||
| 11 | conducted by an owners licensee under paragraph (1) of | ||||||
| 12 | subsection (e-5) of Section 7, an amount equal to the tax | ||||||
| 13 | revenue generated from the privilege tax imposed by paragraph | ||||||
| 14 | (2) of subsection (a-5) that is to be paid to the City of | ||||||
| 15 | Chicago shall be paid monthly, subject to appropriation by the | ||||||
| 16 | General Assembly, as follows: (1) an amount equal to 0.5% of | ||||||
| 17 | the annual adjusted gross receipts generated by the owners | ||||||
| 18 | licensee under paragraph (1) of subsection (e-5) of Section 7 | ||||||
| 19 | to the home rule county in which the owners licensee is located | ||||||
| 20 | for the purpose of enhancing the county's criminal justice | ||||||
| 21 | system; and (2) the balance to the City of Chicago and shall be | ||||||
| 22 | expended or obligated by the City of Chicago for pension | ||||||
| 23 | payments in accordance with Public Act 99-506. | ||||||
| 24 | (c) Appropriations, as approved by the General Assembly, | ||||||
| 25 | may be made from the State Gaming Fund to the Board (i) for the | ||||||
| 26 | administration and enforcement of this Act and the Video | ||||||
| |||||||
| |||||||
| 1 | Gaming Act, (ii) for distribution to the Illinois State Police | ||||||
| 2 | and to the Department of Revenue for the enforcement of this | ||||||
| 3 | Act and the Video Gaming Act, and (iii) to the Department of | ||||||
| 4 | Human Services for the administration of programs to treat | ||||||
| 5 | problem gambling, including problem gambling from sports | ||||||
| 6 | wagering. The Board's annual appropriations request must | ||||||
| 7 | separately state its funding needs for the regulation of | ||||||
| 8 | gaming authorized under Section 7.7, riverboat gaming, casino | ||||||
| 9 | gaming, video gaming, and sports wagering. | ||||||
| 10 | (c-2) An amount equal to 2% of the adjusted gross receipts | ||||||
| 11 | generated by an organization gaming facility located within a | ||||||
| 12 | home rule county with a population of over 3,000,000 | ||||||
| 13 | inhabitants shall be paid, subject to appropriation from the | ||||||
| 14 | General Assembly, from the State Gaming Fund to the home rule | ||||||
| 15 | county in which the organization gaming licensee is located | ||||||
| 16 | for the purpose of enhancing the county's criminal justice | ||||||
| 17 | system. | ||||||
| 18 | (c-3) Appropriations, as approved by the General Assembly, | ||||||
| 19 | may be made from the tax revenue deposited into the State | ||||||
| 20 | Gaming Fund from organization gaming licensees pursuant to | ||||||
| 21 | this Section for the administration and enforcement of this | ||||||
| 22 | Act. | ||||||
| 23 | (c-4) After payments required under subsections (b), | ||||||
| 24 | (b-5), (b-6), (b-7), (c), (c-2), and (c-3) have been made from | ||||||
| 25 | the tax revenue from organization gaming licensees deposited | ||||||
| 26 | into the State Gaming Fund under this Section, all remaining | ||||||
| |||||||
| |||||||
| 1 | amounts from organization gaming licensees shall be | ||||||
| 2 | transferred into the Capital Projects Fund. | ||||||
| 3 | (c-5) (Blank). | ||||||
| 4 | (c-10) Each year the General Assembly shall appropriate | ||||||
| 5 | from the General Revenue Fund to the Education Assistance Fund | ||||||
| 6 | an amount equal to the amount paid into the Horse Racing Equity | ||||||
| 7 | Fund pursuant to subsection (c-5) in the prior calendar year. | ||||||
| 8 | (c-15) After the payments required under subsections (b), | ||||||
| 9 | (c), and (c-5) have been made, an amount equal to 2% of the | ||||||
| 10 | adjusted gross receipts of (1) an owners licensee that | ||||||
| 11 | relocates pursuant to Section 11.2, (2) an owners licensee | ||||||
| 12 | conducting riverboat gambling operations pursuant to an owners | ||||||
| 13 | license that is initially issued after June 25, 1999, or (3) | ||||||
| 14 | the first riverboat gambling operations conducted by a | ||||||
| 15 | licensed manager on behalf of the State under Section 7.3, | ||||||
| 16 | whichever comes first, shall be paid, subject to appropriation | ||||||
| 17 | from the General Assembly, from the State Gaming Fund to each | ||||||
| 18 | home rule county with a population of over 3,000,000 | ||||||
| 19 | inhabitants for the purpose of enhancing the county's criminal | ||||||
| 20 | justice system. | ||||||
| 21 | (c-20) Each year the General Assembly shall appropriate | ||||||
| 22 | from the General Revenue Fund to the Education Assistance Fund | ||||||
| 23 | an amount equal to the amount paid to each home rule county | ||||||
| 24 | with a population of over 3,000,000 inhabitants pursuant to | ||||||
| 25 | subsection (c-15) in the prior calendar year. | ||||||
| 26 | (c-21) After the payments required under subsections (b), | ||||||
| |||||||
| |||||||
| 1 | (b-4), (b-5), (b-6), (b-7), (b-8), (c), (c-3), and (c-4) have | ||||||
| 2 | been made, an amount equal to 0.5% of the adjusted gross | ||||||
| 3 | receipts generated by the owners licensee under paragraph (1) | ||||||
| 4 | of subsection (e-5) of Section 7 shall be paid monthly, | ||||||
| 5 | subject to appropriation from the General Assembly, from the | ||||||
| 6 | State Gaming Fund to the home rule county in which the owners | ||||||
| 7 | licensee is located for the purpose of enhancing the county's | ||||||
| 8 | criminal justice system. | ||||||
| 9 | (c-22) After the payments required under subsections (b), | ||||||
| 10 | (b-4), (b-5), (b-6), (b-7), (b-8), (c), (c-3), (c-4), and | ||||||
| 11 | (c-21) have been made, an amount equal to 2% of the adjusted | ||||||
| 12 | gross receipts generated by the owners licensee under | ||||||
| 13 | paragraph (5) of subsection (e-5) of Section 7 shall be paid, | ||||||
| 14 | subject to appropriation from the General Assembly, from the | ||||||
| 15 | State Gaming Fund to the home rule county in which the owners | ||||||
| 16 | licensee is located for the purpose of enhancing the county's | ||||||
| 17 | criminal justice system. | ||||||
| 18 | (c-25) From July 1, 2013 and each July 1 thereafter | ||||||
| 19 | through July 1, 2019, $1,600,000 shall be transferred from the | ||||||
| 20 | State Gaming Fund to the Chicago State University Education | ||||||
| 21 | Improvement Fund. | ||||||
| 22 | On July 1, 2020 and each July 1 thereafter, $3,000,000 | ||||||
| 23 | shall be transferred from the State Gaming Fund to the Chicago | ||||||
| 24 | State University Education Improvement Fund. | ||||||
| 25 | (c-30) On July 1, 2013 or as soon as possible thereafter, | ||||||
| 26 | $92,000,000 shall be transferred from the State Gaming Fund to | ||||||
| |||||||
| |||||||
| 1 | the School Infrastructure Fund and $23,000,000 shall be | ||||||
| 2 | transferred from the State Gaming Fund to the Horse Racing | ||||||
| 3 | Equity Fund. | ||||||
| 4 | (c-35) Beginning on July 1, 2013, in addition to any | ||||||
| 5 | amount transferred under subsection (c-30) of this Section, | ||||||
| 6 | $5,530,000 shall be transferred monthly from the State Gaming | ||||||
| 7 | Fund to the School Infrastructure Fund. | ||||||
| 8 | (d) From time to time, through June 30, 2021, the Board | ||||||
| 9 | shall transfer the remainder of the funds generated by this | ||||||
| 10 | Act into the Education Assistance Fund. | ||||||
| 11 | (d-5) Beginning on July 1, 2021, on the last day of each | ||||||
| 12 | month, or as soon thereafter as possible, after all the | ||||||
| 13 | required expenditures, distributions, and transfers have been | ||||||
| 14 | made from the State Gaming Fund for the month pursuant to | ||||||
| 15 | subsections (b) through (c-35), at the direction of the Board, | ||||||
| 16 | the Comptroller shall direct and the Treasurer shall transfer | ||||||
| 17 | $22,500,000, along with any deficiencies in such amounts from | ||||||
| 18 | prior months in the same fiscal year, from the State Gaming | ||||||
| 19 | Fund to the Education Assistance Fund; then, at the direction | ||||||
| 20 | of the Board, the Comptroller shall direct and the Treasurer | ||||||
| 21 | shall transfer the remainder of the funds generated by this | ||||||
| 22 | Act, if any, from the State Gaming Fund to the Capital Projects | ||||||
| 23 | Fund. | ||||||
| 24 | (e) Nothing in this Act shall prohibit the unit of local | ||||||
| 25 | government designated as the home dock of the riverboat from | ||||||
| 26 | entering into agreements with other units of local government | ||||||
| |||||||
| |||||||
| 1 | in this State or in other states to share its portion of the | ||||||
| 2 | tax revenue. | ||||||
| 3 | (f) To the extent practicable, the Board shall administer | ||||||
| 4 | and collect the wagering taxes imposed by this Section in a | ||||||
| 5 | manner consistent with the provisions of Sections 4, 5, 5a, | ||||||
| 6 | 5b, 5c, 5d, 5e, 5f, 5g, 5i, 5j, 6, 6a, 6b, 6c, 8, 9, and 10 of | ||||||
| 7 | the Retailers' Occupation Tax Act and Section 3-7 of the | ||||||
| 8 | Uniform Penalty and Interest Act. | ||||||
| 9 | (Source: P.A. 102-16, eff. 6-17-21; 102-538, eff. 8-20-21; | ||||||
| 10 | 102-689, eff. 12-17-21; 102-699, eff. 4-19-22; 103-8, eff. | ||||||
| 11 | 6-7-23; 103-574, eff. 12-8-23.)
| ||||||
| 12 | ARTICLE 165. | ||||||
| 13 | Section 165-5. The Illinois Local Library Act is amended | ||||||
| 14 | by changing Section 4-9 as follows:
| ||||||
| 15 | (75 ILCS 5/4-9) (from Ch. 81, par. 4-9) | ||||||
| 16 | Sec. 4-9. In townships and in cities, villages and | ||||||
| 17 | incorporated towns having a population of 500,000 or less, the | ||||||
| 18 | board of trustees shall require the treasurer of such board or | ||||||
| 19 | such other person as may be designated as the custodian of the | ||||||
| 20 | moneys paid over to such board to give a bond to be approved by | ||||||
| 21 | such board and in such amount, not less than 10% 50% of the | ||||||
| 22 | total funds received by the library in the last fiscal year, | ||||||
| 23 | conditioned that he will safely keep and pay over upon the | ||||||
| |||||||
| |||||||
| 1 | order of such board all funds received and held by him for such | ||||||
| 2 | board of trustees. For a library in a city, village, | ||||||
| 3 | incorporated town or township, the board of library trustees | ||||||
| 4 | may designate the treasurer of the corporate authority, or the | ||||||
| 5 | supervisor in the case of a township, as the custodian of the | ||||||
| 6 | library fund, and the bond given by the treasurer or the | ||||||
| 7 | supervisor shall satisfy the bond requirements of this section | ||||||
| 8 | when properly endorsed. The cost of any surety bond shall be | ||||||
| 9 | borne by the library. As an alternative to a personal bond on | ||||||
| 10 | the treasurer or custodian of funds, the board of trustees may | ||||||
| 11 | require the treasurer or custodian to secure for the library | ||||||
| 12 | an insurance policy or other insurance instrument that | ||||||
| 13 | provides the library with coverage for negligent or | ||||||
| 14 | intentional acts by library officials and employees that could | ||||||
| 15 | result in the loss of library funds. The coverage shall be in | ||||||
| 16 | an amount at least equal to 10% 50% of the average amount of | ||||||
| 17 | the library's operating fund from the prior 3 fiscal years. | ||||||
| 18 | The coverage shall be placed with an insurer approved by the | ||||||
| 19 | board. The cost of any such coverage shall be borne by the | ||||||
| 20 | library. The library shall provide the Illinois State Library | ||||||
| 21 | a copy of the library's certificate of insurance at the time | ||||||
| 22 | the library's annual report is filed. | ||||||
| 23 | (Source: P.A. 97-101, eff. 1-1-12.)
| ||||||
| 24 | Section 165-10. The Illinois Library System Act is amended | ||||||
| 25 | by changing Section 5 as follows:
| ||||||
| |||||||
| |||||||
| 1 | (75 ILCS 10/5) (from Ch. 81, par. 115) | ||||||
| 2 | Sec. 5. Each library system created as provided in Section | ||||||
| 3 | 4 of this Act shall be governed by a board of directors | ||||||
| 4 | numbering at least 5 and no more than 15 persons, except as | ||||||
| 5 | required by Section 6 for library systems in cities with a | ||||||
| 6 | population of 500,000 or more. The board shall be | ||||||
| 7 | representative of the variety of library interests in the | ||||||
| 8 | system, and at least a majority shall be elected or selected | ||||||
| 9 | from the governing boards of the member public libraries, with | ||||||
| 10 | not more than one director representing a single member | ||||||
| 11 | library. For library systems as defined in subparagraph (3) of | ||||||
| 12 | the definition of "library system" in Section 2, the board | ||||||
| 13 | members shall be representative of the types of libraries that | ||||||
| 14 | library system serves. The number of directors, the manner of | ||||||
| 15 | election or selection, the term of office and the provision | ||||||
| 16 | for filling vacancies shall be determined by the system | ||||||
| 17 | governing board except that all board members must be eligible | ||||||
| 18 | electors in the geographical area of the system. No director | ||||||
| 19 | of any library system, however, shall be permitted to serve | ||||||
| 20 | for more than a total of 6 years unless 2 years have elapsed | ||||||
| 21 | since his sixth year of service. | ||||||
| 22 | The board of directors shall elect a president, secretary | ||||||
| 23 | and treasurer. Before entering upon his duties, the treasurer | ||||||
| 24 | shall be required to give a bond in an amount to be approved by | ||||||
| 25 | the board, but in no case shall such amount be less than 10% | ||||||
| |||||||
| |||||||
| 1 | 50% of the system's area and per capita grant for the previous | ||||||
| 2 | year, conditioned that he will safely keep and pay over upon | ||||||
| 3 | the order of such board all funds received and held by him for | ||||||
| 4 | the library system. As an alternative to a personal bond on the | ||||||
| 5 | treasurer, the board of trustees may require the treasurer to | ||||||
| 6 | secure for the system an insurance policy or other insurance | ||||||
| 7 | instrument that provides the library with coverage for | ||||||
| 8 | negligent or intentional acts by system officials and | ||||||
| 9 | employees that could result in the loss of system funds. The | ||||||
| 10 | coverage shall be in an amount at least equal to 10% 50% of the | ||||||
| 11 | average amount of the system's operating fund from the prior 3 | ||||||
| 12 | fiscal years. The coverage shall be placed with an insurer | ||||||
| 13 | approved by the board. The cost of any such coverage shall be | ||||||
| 14 | borne by the system. The system shall provide the Illinois | ||||||
| 15 | State Library a copy of the system's certificate of insurance | ||||||
| 16 | at the time the system's annual report is filed. The funds of | ||||||
| 17 | the library system shall be deposited in a bank or savings and | ||||||
| 18 | loan association designated by the board of directors and | ||||||
| 19 | shall be expended only under the direction of such board upon | ||||||
| 20 | properly authenticated vouchers. | ||||||
| 21 | No bank or savings and loan association shall receive | ||||||
| 22 | public funds as permitted by this Section, unless it has | ||||||
| 23 | complied with the requirements established pursuant to Section | ||||||
| 24 | 6 of the Public Funds Investment Act. | ||||||
| 25 | The members of the board of directors of the library | ||||||
| 26 | system shall serve without compensation but their actual and | ||||||
| |||||||
| |||||||
| 1 | necessary expenses shall be a proper charge against the | ||||||
| 2 | library fund. | ||||||
| 3 | (Source: P.A. 97-101, eff. 1-1-12.)
| ||||||
| 4 | Section 165-15. The Public Library District Act of 1991 is | ||||||
| 5 | amended by changing Section 30-45 as follows:
| ||||||
| 6 | (75 ILCS 16/30-45) | ||||||
| 7 | Sec. 30-45. Duties of officers. | ||||||
| 8 | (a) The duties of the officers of the board are as provided | ||||||
| 9 | in this Section. | ||||||
| 10 | (b) The president shall preside over all meetings, appoint | ||||||
| 11 | members of committees authorized by the district's | ||||||
| 12 | regulations, and perform other duties specified by the | ||||||
| 13 | district's regulations, ordinances, or other appropriate | ||||||
| 14 | action. In the president's absence, the vice president shall | ||||||
| 15 | preside at meetings. The president shall not have or exercise | ||||||
| 16 | veto powers. | ||||||
| 17 | (c) The vice president's duties shall be prescribed by | ||||||
| 18 | regulations. | ||||||
| 19 | (d) The treasurer shall keep and maintain accounts and | ||||||
| 20 | records of the district during the treasurer's term in office, | ||||||
| 21 | indicating in those accounts and records a record of all | ||||||
| 22 | receipts, disbursements, and balances in any funds. | ||||||
| 23 | Annual audit and financial report requirements shall | ||||||
| 24 | conform with Section 3 of the Governmental Account Audit Act. | ||||||
| |||||||
| |||||||
| 1 | (e) The treasurer shall give bond to the district to | ||||||
| 2 | faithfully discharge the duties of the office and to account | ||||||
| 3 | to the district for all district funds coming into the | ||||||
| 4 | treasurer's hands. The bond shall be in an amount and with | ||||||
| 5 | sureties approved by the board. The amount of the bond shall be | ||||||
| 6 | based upon a minimum of 10% 50% of the total funds received by | ||||||
| 7 | the district in the last previous fiscal year. The cost of any | ||||||
| 8 | surety bond shall be borne by the district. As an alternative | ||||||
| 9 | to a personal bond on the treasurer, the treasurer may secure | ||||||
| 10 | for the district an insurance policy or other insurance | ||||||
| 11 | instrument that provides the district with coverage for | ||||||
| 12 | negligent or intentional acts by district officials and | ||||||
| 13 | employees that could result in the loss of district funds. The | ||||||
| 14 | coverage shall be in an amount at least equal to 10% 50% of the | ||||||
| 15 | average amount of the district's operating fund from the prior | ||||||
| 16 | 3 fiscal years. The coverage shall be placed with an insurer | ||||||
| 17 | approved by the board. The cost of any such coverage shall be | ||||||
| 18 | borne by the district. The system shall provide the Illinois | ||||||
| 19 | State Library a copy of the district's certificate of | ||||||
| 20 | insurance at the time the district's annual report is filed. | ||||||
| 21 | (f) Any person, entity, or public body or agency | ||||||
| 22 | possessing district funds, property, or records shall, upon | ||||||
| 23 | demand by any trustee, transfer and release the funds, | ||||||
| 24 | property, or records to the treasurer. | ||||||
| 25 | (g) The secretary shall keep and maintain appropriate | ||||||
| 26 | records for his or her term in office and shall include in | ||||||
| |||||||
| |||||||
| 1 | those records a record of the minutes of all meetings, the | ||||||
| 2 | names of those in attendance, the ordinances enacted, the | ||||||
| 3 | resolutions and regulations adopted, and all other pertinent | ||||||
| 4 | written matter affecting the operation of the district. The | ||||||
| 5 | secretary may administer oaths and affirmations for the | ||||||
| 6 | purposes of this Act. | ||||||
| 7 | (Source: P.A. 97-101, eff. 1-1-12.)
| ||||||
| 8 | ARTICLE 170. | ||||||
| 9 | Section 170-1. Short title. This Act may be cited as the | ||||||
| 10 | Illinois Gives Tax Credit Act. References in this Article to | ||||||
| 11 | "this Act" mean this Article.
| ||||||
| 12 | Section 170-5. Definitions. As used in this Act: | ||||||
| 13 | "Business entity" means a corporation (including a | ||||||
| 14 | Subchapter S corporation), trust, estate, partnership, limited | ||||||
| 15 | liability company, or sole proprietorship. | ||||||
| 16 | "Credit-eligible endowment gift" means an endowment gift | ||||||
| 17 | for which a taxpayer intends to apply for an income tax credit | ||||||
| 18 | under this Act. | ||||||
| 19 | "Department" means the Department of Revenue. | ||||||
| 20 | "Donor advised fund" has the meaning given to that term in | ||||||
| 21 | subsection (d) of Section 4966 of the Internal Revenue Code of | ||||||
| 22 | 1986. | ||||||
| 23 | "Endowment gift" means an irrevocable contribution to a | ||||||
| |||||||
| |||||||
| 1 | permanent endowment fund held by a qualified community | ||||||
| 2 | foundation. | ||||||
| 3 | "Permanent endowment fund" means a fund that (i) is held | ||||||
| 4 | by a qualified community foundation, (ii) provides charitable | ||||||
| 5 | grants exclusively for the benefit of residents of the State | ||||||
| 6 | or charities and charitable projects located in the State, | ||||||
| 7 | (iii) is intended to exist in perpetuity, (iv) has an annual | ||||||
| 8 | spending rate based on the foundation spending policy, but not | ||||||
| 9 | to exceed 7%, and (v) is not a donor advised fund. | ||||||
| 10 | "Qualified community foundation" means a community | ||||||
| 11 | foundation or similar publicly supported organization | ||||||
| 12 | described in Section 170 (b)(1)(A)(vi) of the Internal Revenue | ||||||
| 13 | Code of 1986 that is organized or operating in this State and | ||||||
| 14 | that substantially complies with the national standards for | ||||||
| 15 | U.S. community foundations established by the Community | ||||||
| 16 | Foundations National Standards, as determined by the | ||||||
| 17 | Department. | ||||||
| 18 | "Taxpayer" means any individual who is subject to the tax | ||||||
| 19 | imposed under subsections (a) and (b) of Section 201 of the | ||||||
| 20 | Illinois Income Tax Act or any business entity that is subject | ||||||
| 21 | to the tax imposed under subsections (a) and (b) of Section 201 | ||||||
| 22 | of the Illinois Income Tax Act.
| ||||||
| 23 | Section 170-10. Tax credit awards; limitations. | ||||||
| 24 | (a) For taxable years ending on or after December 31, 2025 | ||||||
| 25 | and ending before January 1, 2030, the Department shall award, | ||||||
| |||||||
| |||||||
| 1 | in accordance with this Act, income tax credits to taxpayers | ||||||
| 2 | who provide an endowment gift to a permanent endowment fund | ||||||
| 3 | during the taxable year and receive a certificate of receipt | ||||||
| 4 | under Section 170-15 for that gift. Subject to the limitations | ||||||
| 5 | in this Section, the amount of the credit that may be awarded | ||||||
| 6 | to a taxpayer by the Department under this Act is an amount | ||||||
| 7 | equal to 25% of the endowment gift. | ||||||
| 8 | (b) The aggregate amount of all Illinois Gives tax credits | ||||||
| 9 | awarded by the Department under this Act in any calendar year | ||||||
| 10 | may not exceed $5,000,000. | ||||||
| 11 | (c) The aggregate amount of all Illinois Gives tax credits | ||||||
| 12 | that the Department may award to any taxpayer under this Act in | ||||||
| 13 | any calendar year may not exceed $100,000. | ||||||
| 14 | (d) The amount of contributions to any specific qualified | ||||||
| 15 | community foundation that are eligible for Illinois Gives tax | ||||||
| 16 | credits under this Section in any calendar year shall not | ||||||
| 17 | exceed $3,000,000. | ||||||
| 18 | (e) Of the annual amount available for tax credits, 25% | ||||||
| 19 | must be reserved for endowment gifts that do not exceed the | ||||||
| 20 | small gift maximum set forth in this subsection. The small | ||||||
| 21 | gift maximum is $25,000. For purposes of determining if a | ||||||
| 22 | donation meets the small gift maximum, the amount of the | ||||||
| 23 | credit authorization certificate under Section 170-15 shall be | ||||||
| 24 | used. | ||||||
| 25 | (f) For the purpose of this Section, a credit is | ||||||
| 26 | considered to be awarded on the date the Department issues an | ||||||
| |||||||
| |||||||
| 1 | approved contribution authorization certificate under Section | ||||||
| 2 | 170-15.
| ||||||
| 3 | Section 170-15. Applications for tax credits. | ||||||
| 4 | (a) The taxpayer shall apply to the Department, in the | ||||||
| 5 | form and manner prescribed by the Department, for a | ||||||
| 6 | contribution authorization certificate. A taxpayer who makes | ||||||
| 7 | more than one credit-eligible endowment gift must make a | ||||||
| 8 | separate application for each contribution authorization | ||||||
| 9 | certificate. Applications under this subsection shall be | ||||||
| 10 | reviewed by the Department and shall either be approved or | ||||||
| 11 | denied. Each approved contribution authorization certificate | ||||||
| 12 | shall be sent to the taxpayer within 3 business days after the | ||||||
| 13 | certificate is approved. The Department shall maintain on its | ||||||
| 14 | website a running total of: (i) the total amount of credits | ||||||
| 15 | remaining under this Act for which taxpayers may apply for a | ||||||
| 16 | contribution authorization certificate issued in the calendar | ||||||
| 17 | year; (ii) the total amount of credits allocated during the | ||||||
| 18 | calendar year for each specific community foundation; and | ||||||
| 19 | (iii) the total amount remaining for the calendar year under | ||||||
| 20 | the small gift maximum set forth in Section 170-10. Those | ||||||
| 21 | running totals shall be updated every business day. | ||||||
| 22 | (b) The taxpayer shall make the endowment gift to the | ||||||
| 23 | permanent endowment fund either prior to or within 10 business | ||||||
| 24 | days after the taxpayer receives the approved contribution | ||||||
| 25 | authorization certificate under subsection (a). The qualified | ||||||
| |||||||
| |||||||
| 1 | community foundation shall, within 30 business days after | ||||||
| 2 | receipt of an endowment gift for which a contribution | ||||||
| 3 | authorization certificate has been approved by the Department | ||||||
| 4 | under subsection (a), issue to the taxpayer a written | ||||||
| 5 | certificate of receipt, which shall contain the information | ||||||
| 6 | required by the Department by rule. No receipt shall be issued | ||||||
| 7 | for amounts that are not actually received by the qualified | ||||||
| 8 | community foundation within 10 business days after the | ||||||
| 9 | taxpayer receives the approved contribution authorization | ||||||
| 10 | certificate.
| ||||||
| 11 | Section 170-20. Approval to issue certificates of receipt. | ||||||
| 12 | (a) A qualified community foundation shall submit an | ||||||
| 13 | application for approval to issue certificates of receipt, in | ||||||
| 14 | the form and manner prescribed by the Department, provided | ||||||
| 15 | that each application shall include: | ||||||
| 16 | (1) documentary evidence that the qualified community | ||||||
| 17 | foundation meets the qualifications under Section | ||||||
| 18 | 170(b)(1)(A)(vi) of the Internal Revenue Code and | ||||||
| 19 | substantially complies with the standards established by | ||||||
| 20 | Community Foundations National Standards; | ||||||
| 21 | (2) certification that the qualified community | ||||||
| 22 | foundation holds a permanent endowment fund meeting the | ||||||
| 23 | criteria established in Section 170-5; | ||||||
| 24 | (3) a list of the names and addresses of all members of | ||||||
| 25 | the governing board of the qualified community foundation; | ||||||
| |||||||
| |||||||
| 1 | and | ||||||
| 2 | (4) a copy of the most recent financial audit of the | ||||||
| 3 | qualified community foundation's accounts and records | ||||||
| 4 | conducted by an independent certified public accountant in | ||||||
| 5 | accordance with auditing standards generally accepted in | ||||||
| 6 | the United States, government auditing standards, and | ||||||
| 7 | rules adopted by the Department. | ||||||
| 8 | (b) The Department shall review and either approve or deny | ||||||
| 9 | each application to issue certificates of receipt pursuant to | ||||||
| 10 | this Act. Approval or denial of an application shall be made on | ||||||
| 11 | a periodic basis. Applicants shall be notified of the | ||||||
| 12 | Department's determination within 30 business days after the | ||||||
| 13 | application is received.
| ||||||
| 14 | Section 170-25. Certificates of receipt. | ||||||
| 15 | (a) No qualified community foundation shall issue a | ||||||
| 16 | certificate of receipt for any qualified contribution made by | ||||||
| 17 | a taxpayer under this Act unless that qualified community | ||||||
| 18 | foundation has been approved to issue certificates of receipt | ||||||
| 19 | pursuant to Section 170-20 of this Act. | ||||||
| 20 | (b) No qualified community foundation shall issue a | ||||||
| 21 | certificate of receipt for a contribution made by a taxpayer | ||||||
| 22 | unless the taxpayer has been issued a credit authorization | ||||||
| 23 | certificate by the Department. | ||||||
| 24 | (c) If a taxpayer makes a contribution to a qualified | ||||||
| 25 | community foundation prior to the date by which the authorized | ||||||
| |||||||
| |||||||
| 1 | contribution shall be made as provided in Section 170-15, the | ||||||
| 2 | qualified community foundation shall, within 30 business days | ||||||
| 3 | after receipt of the authorized contribution, issue to the | ||||||
| 4 | taxpayer a written certificate of receipt. | ||||||
| 5 | (d) If a taxpayer fails to make all or a portion of a | ||||||
| 6 | contribution prior to the date by which such authorized | ||||||
| 7 | contribution is required to be made, the taxpayer shall not be | ||||||
| 8 | entitled to a certificate of receipt for that portion of the | ||||||
| 9 | authorized contribution not made. | ||||||
| 10 | (e) Each certificate of receipt shall state: | ||||||
| 11 | (1) the name and address of the issuing qualified | ||||||
| 12 | community foundation; | ||||||
| 13 | (2) the taxpayer's name and address; | ||||||
| 14 | (3) the date of each qualified contribution; | ||||||
| 15 | (4) the amount of each qualified contribution; | ||||||
| 16 | (5) the total qualified contribution amount; and | ||||||
| 17 | (6) any other information that the Department deems | ||||||
| 18 | necessary. | ||||||
| 19 | (f) Upon the issuance of a certificate of receipt, the | ||||||
| 20 | issuing qualified community foundation shall, within 10 | ||||||
| 21 | business days after issuing the certificate of receipt, | ||||||
| 22 | provide the Department with notification of the issuance of | ||||||
| 23 | such certificate, in the form and manner prescribed by the | ||||||
| 24 | Department, provided that such notification shall include: | ||||||
| 25 | (1) the taxpayer's name and address; | ||||||
| 26 | (2) the date of the issuance of a certificate of | ||||||
| |||||||
| |||||||
| 1 | receipt; | ||||||
| 2 | (3) the qualified contribution date or dates and the | ||||||
| 3 | amounts contributed on such dates; | ||||||
| 4 | (4) the total qualified contribution listed on such | ||||||
| 5 | certificates; | ||||||
| 6 | (5) the issuing qualified community foundation's name | ||||||
| 7 | and address; and | ||||||
| 8 | (6) any other information the Department may deem | ||||||
| 9 | necessary. | ||||||
| 10 | (g) Any portion of a contribution that a taxpayer fails to | ||||||
| 11 | make by the date indicated on the authorized contribution | ||||||
| 12 | certificate shall no longer be deducted from the cap | ||||||
| 13 | prescribed in Section 170-10 of this Act.
| ||||||
| 14 | Section 170-30. Annual report. By March 31, 2026, and by | ||||||
| 15 | March 31 of each subsequent year, the Department must submit | ||||||
| 16 | an annual report to the Governor and the General Assembly | ||||||
| 17 | concerning the activities conducted under this Act during the | ||||||
| 18 | previous calendar year. The report must include a detailed | ||||||
| 19 | listing of tax credits authorized under this Act by the | ||||||
| 20 | Department. The report may not disclose any information if the | ||||||
| 21 | disclosure would violate Section 917 of the Illinois Income | ||||||
| 22 | Tax Act.
| ||||||
| 23 | Section 170-35. Rulemaking. The Department may adopt rules | ||||||
| 24 | for the implementation of this Act.
| ||||||
| |||||||
| |||||||
| 1 | Section 170-90. The Illinois Income Tax Act is amended by | ||||||
| 2 | changing Section 203 and by adding Section 241 as follows:
| ||||||
| 3 | (35 ILCS 5/203) | ||||||
| 4 | Sec. 203. Base income defined. | ||||||
| 5 | (a) Individuals. | ||||||
| 6 | (1) In general. In the case of an individual, base | ||||||
| 7 | income means an amount equal to the taxpayer's adjusted | ||||||
| 8 | gross income for the taxable year as modified by paragraph | ||||||
| 9 | (2). | ||||||
| 10 | (2) Modifications. The adjusted gross income referred | ||||||
| 11 | to in paragraph (1) shall be modified by adding thereto | ||||||
| 12 | the sum of the following amounts: | ||||||
| 13 | (A) An amount equal to all amounts paid or accrued | ||||||
| 14 | to the taxpayer as interest or dividends during the | ||||||
| 15 | taxable year to the extent excluded from gross income | ||||||
| 16 | in the computation of adjusted gross income, except | ||||||
| 17 | stock dividends of qualified public utilities | ||||||
| 18 | described in Section 305(e) of the Internal Revenue | ||||||
| 19 | Code; | ||||||
| 20 | (B) An amount equal to the amount of tax imposed by | ||||||
| 21 | this Act to the extent deducted from gross income in | ||||||
| 22 | the computation of adjusted gross income for the | ||||||
| 23 | taxable year; | ||||||
| 24 | (C) An amount equal to the amount received during | ||||||
| |||||||
| |||||||
| 1 | the taxable year as a recovery or refund of real | ||||||
| 2 | property taxes paid with respect to the taxpayer's | ||||||
| 3 | principal residence under the Revenue Act of 1939 and | ||||||
| 4 | for which a deduction was previously taken under | ||||||
| 5 | subparagraph (L) of this paragraph (2) prior to July | ||||||
| 6 | 1, 1991, the retrospective application date of Article | ||||||
| 7 | 4 of Public Act 87-17. In the case of multi-unit or | ||||||
| 8 | multi-use structures and farm dwellings, the taxes on | ||||||
| 9 | the taxpayer's principal residence shall be that | ||||||
| 10 | portion of the total taxes for the entire property | ||||||
| 11 | which is attributable to such principal residence; | ||||||
| 12 | (D) An amount equal to the amount of the capital | ||||||
| 13 | gain deduction allowable under the Internal Revenue | ||||||
| 14 | Code, to the extent deducted from gross income in the | ||||||
| 15 | computation of adjusted gross income; | ||||||
| 16 | (D-5) An amount, to the extent not included in | ||||||
| 17 | adjusted gross income, equal to the amount of money | ||||||
| 18 | withdrawn by the taxpayer in the taxable year from a | ||||||
| 19 | medical care savings account and the interest earned | ||||||
| 20 | on the account in the taxable year of a withdrawal | ||||||
| 21 | pursuant to subsection (b) of Section 20 of the | ||||||
| 22 | Medical Care Savings Account Act or subsection (b) of | ||||||
| 23 | Section 20 of the Medical Care Savings Account Act of | ||||||
| 24 | 2000; | ||||||
| 25 | (D-10) For taxable years ending after December 31, | ||||||
| 26 | 1997, an amount equal to any eligible remediation | ||||||
| |||||||
| |||||||
| 1 | costs that the individual deducted in computing | ||||||
| 2 | adjusted gross income and for which the individual | ||||||
| 3 | claims a credit under subsection (l) of Section 201; | ||||||
| 4 | (D-15) For taxable years 2001 and thereafter, an | ||||||
| 5 | amount equal to the bonus depreciation deduction taken | ||||||
| 6 | on the taxpayer's federal income tax return for the | ||||||
| 7 | taxable year under subsection (k) of Section 168 of | ||||||
| 8 | the Internal Revenue Code; | ||||||
| 9 | (D-16) If the taxpayer sells, transfers, abandons, | ||||||
| 10 | or otherwise disposes of property for which the | ||||||
| 11 | taxpayer was required in any taxable year to make an | ||||||
| 12 | addition modification under subparagraph (D-15), then | ||||||
| 13 | an amount equal to the aggregate amount of the | ||||||
| 14 | deductions taken in all taxable years under | ||||||
| 15 | subparagraph (Z) with respect to that property. | ||||||
| 16 | If the taxpayer continues to own property through | ||||||
| 17 | the last day of the last tax year for which a | ||||||
| 18 | subtraction is allowed with respect to that property | ||||||
| 19 | under subparagraph (Z) and for which the taxpayer was | ||||||
| 20 | allowed in any taxable year to make a subtraction | ||||||
| 21 | modification under subparagraph (Z), then an amount | ||||||
| 22 | equal to that subtraction modification. | ||||||
| 23 | The taxpayer is required to make the addition | ||||||
| 24 | modification under this subparagraph only once with | ||||||
| 25 | respect to any one piece of property; | ||||||
| 26 | (D-17) An amount equal to the amount otherwise | ||||||
| |||||||
| |||||||
| 1 | allowed as a deduction in computing base income for | ||||||
| 2 | interest paid, accrued, or incurred, directly or | ||||||
| 3 | indirectly, (i) for taxable years ending on or after | ||||||
| 4 | December 31, 2004, to a foreign person who would be a | ||||||
| 5 | member of the same unitary business group but for the | ||||||
| 6 | fact that foreign person's business activity outside | ||||||
| 7 | the United States is 80% or more of the foreign | ||||||
| 8 | person's total business activity and (ii) for taxable | ||||||
| 9 | years ending on or after December 31, 2008, to a person | ||||||
| 10 | who would be a member of the same unitary business | ||||||
| 11 | group but for the fact that the person is prohibited | ||||||
| 12 | under Section 1501(a)(27) from being included in the | ||||||
| 13 | unitary business group because he or she is ordinarily | ||||||
| 14 | required to apportion business income under different | ||||||
| 15 | subsections of Section 304. The addition modification | ||||||
| 16 | required by this subparagraph shall be reduced to the | ||||||
| 17 | extent that dividends were included in base income of | ||||||
| 18 | the unitary group for the same taxable year and | ||||||
| 19 | received by the taxpayer or by a member of the | ||||||
| 20 | taxpayer's unitary business group (including amounts | ||||||
| 21 | included in gross income under Sections 951 through | ||||||
| 22 | 964 of the Internal Revenue Code and amounts included | ||||||
| 23 | in gross income under Section 78 of the Internal | ||||||
| 24 | Revenue Code) with respect to the stock of the same | ||||||
| 25 | person to whom the interest was paid, accrued, or | ||||||
| 26 | incurred. | ||||||
| |||||||
| |||||||
| 1 | This paragraph shall not apply to the following: | ||||||
| 2 | (i) an item of interest paid, accrued, or | ||||||
| 3 | incurred, directly or indirectly, to a person who | ||||||
| 4 | is subject in a foreign country or state, other | ||||||
| 5 | than a state which requires mandatory unitary | ||||||
| 6 | reporting, to a tax on or measured by net income | ||||||
| 7 | with respect to such interest; or | ||||||
| 8 | (ii) an item of interest paid, accrued, or | ||||||
| 9 | incurred, directly or indirectly, to a person if | ||||||
| 10 | the taxpayer can establish, based on a | ||||||
| 11 | preponderance of the evidence, both of the | ||||||
| 12 | following: | ||||||
| 13 | (a) the person, during the same taxable | ||||||
| 14 | year, paid, accrued, or incurred, the interest | ||||||
| 15 | to a person that is not a related member, and | ||||||
| 16 | (b) the transaction giving rise to the | ||||||
| 17 | interest expense between the taxpayer and the | ||||||
| 18 | person did not have as a principal purpose the | ||||||
| 19 | avoidance of Illinois income tax, and is paid | ||||||
| 20 | pursuant to a contract or agreement that | ||||||
| 21 | reflects an arm's-length interest rate and | ||||||
| 22 | terms; or | ||||||
| 23 | (iii) the taxpayer can establish, based on | ||||||
| 24 | clear and convincing evidence, that the interest | ||||||
| 25 | paid, accrued, or incurred relates to a contract | ||||||
| 26 | or agreement entered into at arm's-length rates | ||||||
| |||||||
| |||||||
| 1 | and terms and the principal purpose for the | ||||||
| 2 | payment is not federal or Illinois tax avoidance; | ||||||
| 3 | or | ||||||
| 4 | (iv) an item of interest paid, accrued, or | ||||||
| 5 | incurred, directly or indirectly, to a person if | ||||||
| 6 | the taxpayer establishes by clear and convincing | ||||||
| 7 | evidence that the adjustments are unreasonable; or | ||||||
| 8 | if the taxpayer and the Director agree in writing | ||||||
| 9 | to the application or use of an alternative method | ||||||
| 10 | of apportionment under Section 304(f). | ||||||
| 11 | Nothing in this subsection shall preclude the | ||||||
| 12 | Director from making any other adjustment | ||||||
| 13 | otherwise allowed under Section 404 of this Act | ||||||
| 14 | for any tax year beginning after the effective | ||||||
| 15 | date of this amendment provided such adjustment is | ||||||
| 16 | made pursuant to regulation adopted by the | ||||||
| 17 | Department and such regulations provide methods | ||||||
| 18 | and standards by which the Department will utilize | ||||||
| 19 | its authority under Section 404 of this Act; | ||||||
| 20 | (D-18) An amount equal to the amount of intangible | ||||||
| 21 | expenses and costs otherwise allowed as a deduction in | ||||||
| 22 | computing base income, and that were paid, accrued, or | ||||||
| 23 | incurred, directly or indirectly, (i) for taxable | ||||||
| 24 | years ending on or after December 31, 2004, to a | ||||||
| 25 | foreign person who would be a member of the same | ||||||
| 26 | unitary business group but for the fact that the | ||||||
| |||||||
| |||||||
| 1 | foreign person's business activity outside the United | ||||||
| 2 | States is 80% or more of that person's total business | ||||||
| 3 | activity and (ii) for taxable years ending on or after | ||||||
| 4 | December 31, 2008, to a person who would be a member of | ||||||
| 5 | the same unitary business group but for the fact that | ||||||
| 6 | the person is prohibited under Section 1501(a)(27) | ||||||
| 7 | from being included in the unitary business group | ||||||
| 8 | because he or she is ordinarily required to apportion | ||||||
| 9 | business income under different subsections of Section | ||||||
| 10 | 304. The addition modification required by this | ||||||
| 11 | subparagraph shall be reduced to the extent that | ||||||
| 12 | dividends were included in base income of the unitary | ||||||
| 13 | group for the same taxable year and received by the | ||||||
| 14 | taxpayer or by a member of the taxpayer's unitary | ||||||
| 15 | business group (including amounts included in gross | ||||||
| 16 | income under Sections 951 through 964 of the Internal | ||||||
| 17 | Revenue Code and amounts included in gross income | ||||||
| 18 | under Section 78 of the Internal Revenue Code) with | ||||||
| 19 | respect to the stock of the same person to whom the | ||||||
| 20 | intangible expenses and costs were directly or | ||||||
| 21 | indirectly paid, incurred, or accrued. The preceding | ||||||
| 22 | sentence does not apply to the extent that the same | ||||||
| 23 | dividends caused a reduction to the addition | ||||||
| 24 | modification required under Section 203(a)(2)(D-17) of | ||||||
| 25 | this Act. As used in this subparagraph, the term | ||||||
| 26 | "intangible expenses and costs" includes (1) expenses, | ||||||
| |||||||
| |||||||
| 1 | losses, and costs for, or related to, the direct or | ||||||
| 2 | indirect acquisition, use, maintenance or management, | ||||||
| 3 | ownership, sale, exchange, or any other disposition of | ||||||
| 4 | intangible property; (2) losses incurred, directly or | ||||||
| 5 | indirectly, from factoring transactions or discounting | ||||||
| 6 | transactions; (3) royalty, patent, technical, and | ||||||
| 7 | copyright fees; (4) licensing fees; and (5) other | ||||||
| 8 | similar expenses and costs. For purposes of this | ||||||
| 9 | subparagraph, "intangible property" includes patents, | ||||||
| 10 | patent applications, trade names, trademarks, service | ||||||
| 11 | marks, copyrights, mask works, trade secrets, and | ||||||
| 12 | similar types of intangible assets. | ||||||
| 13 | This paragraph shall not apply to the following: | ||||||
| 14 | (i) any item of intangible expenses or costs | ||||||
| 15 | paid, accrued, or incurred, directly or | ||||||
| 16 | indirectly, from a transaction with a person who | ||||||
| 17 | is subject in a foreign country or state, other | ||||||
| 18 | than a state which requires mandatory unitary | ||||||
| 19 | reporting, to a tax on or measured by net income | ||||||
| 20 | with respect to such item; or | ||||||
| 21 | (ii) any item of intangible expense or cost | ||||||
| 22 | paid, accrued, or incurred, directly or | ||||||
| 23 | indirectly, if the taxpayer can establish, based | ||||||
| 24 | on a preponderance of the evidence, both of the | ||||||
| 25 | following: | ||||||
| 26 | (a) the person during the same taxable | ||||||
| |||||||
| |||||||
| 1 | year paid, accrued, or incurred, the | ||||||
| 2 | intangible expense or cost to a person that is | ||||||
| 3 | not a related member, and | ||||||
| 4 | (b) the transaction giving rise to the | ||||||
| 5 | intangible expense or cost between the | ||||||
| 6 | taxpayer and the person did not have as a | ||||||
| 7 | principal purpose the avoidance of Illinois | ||||||
| 8 | income tax, and is paid pursuant to a contract | ||||||
| 9 | or agreement that reflects arm's-length terms; | ||||||
| 10 | or | ||||||
| 11 | (iii) any item of intangible expense or cost | ||||||
| 12 | paid, accrued, or incurred, directly or | ||||||
| 13 | indirectly, from a transaction with a person if | ||||||
| 14 | the taxpayer establishes by clear and convincing | ||||||
| 15 | evidence, that the adjustments are unreasonable; | ||||||
| 16 | or if the taxpayer and the Director agree in | ||||||
| 17 | writing to the application or use of an | ||||||
| 18 | alternative method of apportionment under Section | ||||||
| 19 | 304(f); | ||||||
| 20 | Nothing in this subsection shall preclude the | ||||||
| 21 | Director from making any other adjustment | ||||||
| 22 | otherwise allowed under Section 404 of this Act | ||||||
| 23 | for any tax year beginning after the effective | ||||||
| 24 | date of this amendment provided such adjustment is | ||||||
| 25 | made pursuant to regulation adopted by the | ||||||
| 26 | Department and such regulations provide methods | ||||||
| |||||||
| |||||||
| 1 | and standards by which the Department will utilize | ||||||
| 2 | its authority under Section 404 of this Act; | ||||||
| 3 | (D-19) For taxable years ending on or after | ||||||
| 4 | December 31, 2008, an amount equal to the amount of | ||||||
| 5 | insurance premium expenses and costs otherwise allowed | ||||||
| 6 | as a deduction in computing base income, and that were | ||||||
| 7 | paid, accrued, or incurred, directly or indirectly, to | ||||||
| 8 | a person who would be a member of the same unitary | ||||||
| 9 | business group but for the fact that the person is | ||||||
| 10 | prohibited under Section 1501(a)(27) from being | ||||||
| 11 | included in the unitary business group because he or | ||||||
| 12 | she is ordinarily required to apportion business | ||||||
| 13 | income under different subsections of Section 304. The | ||||||
| 14 | addition modification required by this subparagraph | ||||||
| 15 | shall be reduced to the extent that dividends were | ||||||
| 16 | included in base income of the unitary group for the | ||||||
| 17 | same taxable year and received by the taxpayer or by a | ||||||
| 18 | member of the taxpayer's unitary business group | ||||||
| 19 | (including amounts included in gross income under | ||||||
| 20 | Sections 951 through 964 of the Internal Revenue Code | ||||||
| 21 | and amounts included in gross income under Section 78 | ||||||
| 22 | of the Internal Revenue Code) with respect to the | ||||||
| 23 | stock of the same person to whom the premiums and costs | ||||||
| 24 | were directly or indirectly paid, incurred, or | ||||||
| 25 | accrued. The preceding sentence does not apply to the | ||||||
| 26 | extent that the same dividends caused a reduction to | ||||||
| |||||||
| |||||||
| 1 | the addition modification required under Section | ||||||
| 2 | 203(a)(2)(D-17) or Section 203(a)(2)(D-18) of this | ||||||
| 3 | Act; | ||||||
| 4 | (D-20) For taxable years beginning on or after | ||||||
| 5 | January 1, 2002 and ending on or before December 31, | ||||||
| 6 | 2006, in the case of a distribution from a qualified | ||||||
| 7 | tuition program under Section 529 of the Internal | ||||||
| 8 | Revenue Code, other than (i) a distribution from a | ||||||
| 9 | College Savings Pool created under Section 16.5 of the | ||||||
| 10 | State Treasurer Act or (ii) a distribution from the | ||||||
| 11 | Illinois Prepaid Tuition Trust Fund, an amount equal | ||||||
| 12 | to the amount excluded from gross income under Section | ||||||
| 13 | 529(c)(3)(B). For taxable years beginning on or after | ||||||
| 14 | January 1, 2007, in the case of a distribution from a | ||||||
| 15 | qualified tuition program under Section 529 of the | ||||||
| 16 | Internal Revenue Code, other than (i) a distribution | ||||||
| 17 | from a College Savings Pool created under Section 16.5 | ||||||
| 18 | of the State Treasurer Act, (ii) a distribution from | ||||||
| 19 | the Illinois Prepaid Tuition Trust Fund, or (iii) a | ||||||
| 20 | distribution from a qualified tuition program under | ||||||
| 21 | Section 529 of the Internal Revenue Code that (I) | ||||||
| 22 | adopts and determines that its offering materials | ||||||
| 23 | comply with the College Savings Plans Network's | ||||||
| 24 | disclosure principles and (II) has made reasonable | ||||||
| 25 | efforts to inform in-state residents of the existence | ||||||
| 26 | of in-state qualified tuition programs by informing | ||||||
| |||||||
| |||||||
| 1 | Illinois residents directly and, where applicable, to | ||||||
| 2 | inform financial intermediaries distributing the | ||||||
| 3 | program to inform in-state residents of the existence | ||||||
| 4 | of in-state qualified tuition programs at least | ||||||
| 5 | annually, an amount equal to the amount excluded from | ||||||
| 6 | gross income under Section 529(c)(3)(B). | ||||||
| 7 | For the purposes of this subparagraph (D-20), a | ||||||
| 8 | qualified tuition program has made reasonable efforts | ||||||
| 9 | if it makes disclosures (which may use the term | ||||||
| 10 | "in-state program" or "in-state plan" and need not | ||||||
| 11 | specifically refer to Illinois or its qualified | ||||||
| 12 | programs by name) (i) directly to prospective | ||||||
| 13 | participants in its offering materials or makes a | ||||||
| 14 | public disclosure, such as a website posting; and (ii) | ||||||
| 15 | where applicable, to intermediaries selling the | ||||||
| 16 | out-of-state program in the same manner that the | ||||||
| 17 | out-of-state program distributes its offering | ||||||
| 18 | materials; | ||||||
| 19 | (D-20.5) For taxable years beginning on or after | ||||||
| 20 | January 1, 2018, in the case of a distribution from a | ||||||
| 21 | qualified ABLE program under Section 529A of the | ||||||
| 22 | Internal Revenue Code, other than a distribution from | ||||||
| 23 | a qualified ABLE program created under Section 16.6 of | ||||||
| 24 | the State Treasurer Act, an amount equal to the amount | ||||||
| 25 | excluded from gross income under Section 529A(c)(1)(B) | ||||||
| 26 | of the Internal Revenue Code; | ||||||
| |||||||
| |||||||
| 1 | (D-21) For taxable years beginning on or after | ||||||
| 2 | January 1, 2007, in the case of transfer of moneys from | ||||||
| 3 | a qualified tuition program under Section 529 of the | ||||||
| 4 | Internal Revenue Code that is administered by the | ||||||
| 5 | State to an out-of-state program, an amount equal to | ||||||
| 6 | the amount of moneys previously deducted from base | ||||||
| 7 | income under subsection (a)(2)(Y) of this Section; | ||||||
| 8 | (D-21.5) For taxable years beginning on or after | ||||||
| 9 | January 1, 2018, in the case of the transfer of moneys | ||||||
| 10 | from a qualified tuition program under Section 529 or | ||||||
| 11 | a qualified ABLE program under Section 529A of the | ||||||
| 12 | Internal Revenue Code that is administered by this | ||||||
| 13 | State to an ABLE account established under an | ||||||
| 14 | out-of-state ABLE account program, an amount equal to | ||||||
| 15 | the contribution component of the transferred amount | ||||||
| 16 | that was previously deducted from base income under | ||||||
| 17 | subsection (a)(2)(Y) or subsection (a)(2)(HH) of this | ||||||
| 18 | Section; | ||||||
| 19 | (D-22) For taxable years beginning on or after | ||||||
| 20 | January 1, 2009, and prior to January 1, 2018, in the | ||||||
| 21 | case of a nonqualified withdrawal or refund of moneys | ||||||
| 22 | from a qualified tuition program under Section 529 of | ||||||
| 23 | the Internal Revenue Code administered by the State | ||||||
| 24 | that is not used for qualified expenses at an eligible | ||||||
| 25 | education institution, an amount equal to the | ||||||
| 26 | contribution component of the nonqualified withdrawal | ||||||
| |||||||
| |||||||
| 1 | or refund that was previously deducted from base | ||||||
| 2 | income under subsection (a)(2)(y) of this Section, | ||||||
| 3 | provided that the withdrawal or refund did not result | ||||||
| 4 | from the beneficiary's death or disability. For | ||||||
| 5 | taxable years beginning on or after January 1, 2018: | ||||||
| 6 | (1) in the case of a nonqualified withdrawal or | ||||||
| 7 | refund, as defined under Section 16.5 of the State | ||||||
| 8 | Treasurer Act, of moneys from a qualified tuition | ||||||
| 9 | program under Section 529 of the Internal Revenue Code | ||||||
| 10 | administered by the State, an amount equal to the | ||||||
| 11 | contribution component of the nonqualified withdrawal | ||||||
| 12 | or refund that was previously deducted from base | ||||||
| 13 | income under subsection (a)(2)(Y) of this Section, and | ||||||
| 14 | (2) in the case of a nonqualified withdrawal or refund | ||||||
| 15 | from a qualified ABLE program under Section 529A of | ||||||
| 16 | the Internal Revenue Code administered by the State | ||||||
| 17 | that is not used for qualified disability expenses, an | ||||||
| 18 | amount equal to the contribution component of the | ||||||
| 19 | nonqualified withdrawal or refund that was previously | ||||||
| 20 | deducted from base income under subsection (a)(2)(HH) | ||||||
| 21 | of this Section; | ||||||
| 22 | (D-23) An amount equal to the credit allowable to | ||||||
| 23 | the taxpayer under Section 218(a) of this Act, | ||||||
| 24 | determined without regard to Section 218(c) of this | ||||||
| 25 | Act; | ||||||
| 26 | (D-24) For taxable years ending on or after | ||||||
| |||||||
| |||||||
| 1 | December 31, 2017, an amount equal to the deduction | ||||||
| 2 | allowed under Section 199 of the Internal Revenue Code | ||||||
| 3 | for the taxable year; | ||||||
| 4 | (D-25) In the case of a resident, an amount equal | ||||||
| 5 | to the amount of tax for which a credit is allowed | ||||||
| 6 | pursuant to Section 201(p)(7) of this Act; | ||||||
| 7 | and by deducting from the total so obtained the sum of the | ||||||
| 8 | following amounts: | ||||||
| 9 | (E) For taxable years ending before December 31, | ||||||
| 10 | 2001, any amount included in such total in respect of | ||||||
| 11 | any compensation (including but not limited to any | ||||||
| 12 | compensation paid or accrued to a serviceman while a | ||||||
| 13 | prisoner of war or missing in action) paid to a | ||||||
| 14 | resident by reason of being on active duty in the Armed | ||||||
| 15 | Forces of the United States and in respect of any | ||||||
| 16 | compensation paid or accrued to a resident who as a | ||||||
| 17 | governmental employee was a prisoner of war or missing | ||||||
| 18 | in action, and in respect of any compensation paid to a | ||||||
| 19 | resident in 1971 or thereafter for annual training | ||||||
| 20 | performed pursuant to Sections 502 and 503, Title 32, | ||||||
| 21 | United States Code as a member of the Illinois | ||||||
| 22 | National Guard or, beginning with taxable years ending | ||||||
| 23 | on or after December 31, 2007, the National Guard of | ||||||
| 24 | any other state. For taxable years ending on or after | ||||||
| 25 | December 31, 2001, any amount included in such total | ||||||
| 26 | in respect of any compensation (including but not | ||||||
| |||||||
| |||||||
| 1 | limited to any compensation paid or accrued to a | ||||||
| 2 | serviceman while a prisoner of war or missing in | ||||||
| 3 | action) paid to a resident by reason of being a member | ||||||
| 4 | of any component of the Armed Forces of the United | ||||||
| 5 | States and in respect of any compensation paid or | ||||||
| 6 | accrued to a resident who as a governmental employee | ||||||
| 7 | was a prisoner of war or missing in action, and in | ||||||
| 8 | respect of any compensation paid to a resident in 2001 | ||||||
| 9 | or thereafter by reason of being a member of the | ||||||
| 10 | Illinois National Guard or, beginning with taxable | ||||||
| 11 | years ending on or after December 31, 2007, the | ||||||
| 12 | National Guard of any other state. The provisions of | ||||||
| 13 | this subparagraph (E) are exempt from the provisions | ||||||
| 14 | of Section 250; | ||||||
| 15 | (F) An amount equal to all amounts included in | ||||||
| 16 | such total pursuant to the provisions of Sections | ||||||
| 17 | 402(a), 402(c), 403(a), 403(b), 406(a), 407(a), and | ||||||
| 18 | 408 of the Internal Revenue Code, or included in such | ||||||
| 19 | total as distributions under the provisions of any | ||||||
| 20 | retirement or disability plan for employees of any | ||||||
| 21 | governmental agency or unit, or retirement payments to | ||||||
| 22 | retired partners, which payments are excluded in | ||||||
| 23 | computing net earnings from self employment by Section | ||||||
| 24 | 1402 of the Internal Revenue Code and regulations | ||||||
| 25 | adopted pursuant thereto; | ||||||
| 26 | (G) The valuation limitation amount; | ||||||
| |||||||
| |||||||
| 1 | (H) An amount equal to the amount of any tax | ||||||
| 2 | imposed by this Act which was refunded to the taxpayer | ||||||
| 3 | and included in such total for the taxable year; | ||||||
| 4 | (I) An amount equal to all amounts included in | ||||||
| 5 | such total pursuant to the provisions of Section 111 | ||||||
| 6 | of the Internal Revenue Code as a recovery of items | ||||||
| 7 | previously deducted from adjusted gross income in the | ||||||
| 8 | computation of taxable income; | ||||||
| 9 | (J) An amount equal to those dividends included in | ||||||
| 10 | such total which were paid by a corporation which | ||||||
| 11 | conducts business operations in a River Edge | ||||||
| 12 | Redevelopment Zone or zones created under the River | ||||||
| 13 | Edge Redevelopment Zone Act, and conducts | ||||||
| 14 | substantially all of its operations in a River Edge | ||||||
| 15 | Redevelopment Zone or zones. This subparagraph (J) is | ||||||
| 16 | exempt from the provisions of Section 250; | ||||||
| 17 | (K) An amount equal to those dividends included in | ||||||
| 18 | such total that were paid by a corporation that | ||||||
| 19 | conducts business operations in a federally designated | ||||||
| 20 | Foreign Trade Zone or Sub-Zone and that is designated | ||||||
| 21 | a High Impact Business located in Illinois; provided | ||||||
| 22 | that dividends eligible for the deduction provided in | ||||||
| 23 | subparagraph (J) of paragraph (2) of this subsection | ||||||
| 24 | shall not be eligible for the deduction provided under | ||||||
| 25 | this subparagraph (K); | ||||||
| 26 | (L) For taxable years ending after December 31, | ||||||
| |||||||
| |||||||
| 1 | 1983, an amount equal to all social security benefits | ||||||
| 2 | and railroad retirement benefits included in such | ||||||
| 3 | total pursuant to Sections 72(r) and 86 of the | ||||||
| 4 | Internal Revenue Code; | ||||||
| 5 | (M) With the exception of any amounts subtracted | ||||||
| 6 | under subparagraph (N), an amount equal to the sum of | ||||||
| 7 | all amounts disallowed as deductions by (i) Sections | ||||||
| 8 | 171(a)(2) and 265(a)(2) of the Internal Revenue Code, | ||||||
| 9 | and all amounts of expenses allocable to interest and | ||||||
| 10 | disallowed as deductions by Section 265(a)(1) of the | ||||||
| 11 | Internal Revenue Code; and (ii) for taxable years | ||||||
| 12 | ending on or after August 13, 1999, Sections | ||||||
| 13 | 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the | ||||||
| 14 | Internal Revenue Code, plus, for taxable years ending | ||||||
| 15 | on or after December 31, 2011, Section 45G(e)(3) of | ||||||
| 16 | the Internal Revenue Code and, for taxable years | ||||||
| 17 | ending on or after December 31, 2008, any amount | ||||||
| 18 | included in gross income under Section 87 of the | ||||||
| 19 | Internal Revenue Code; the provisions of this | ||||||
| 20 | subparagraph are exempt from the provisions of Section | ||||||
| 21 | 250; | ||||||
| 22 | (N) An amount equal to all amounts included in | ||||||
| 23 | such total which are exempt from taxation by this | ||||||
| 24 | State either by reason of its statutes or Constitution | ||||||
| 25 | or by reason of the Constitution, treaties or statutes | ||||||
| 26 | of the United States; provided that, in the case of any | ||||||
| |||||||
| |||||||
| 1 | statute of this State that exempts income derived from | ||||||
| 2 | bonds or other obligations from the tax imposed under | ||||||
| 3 | this Act, the amount exempted shall be the interest | ||||||
| 4 | net of bond premium amortization; | ||||||
| 5 | (O) An amount equal to any contribution made to a | ||||||
| 6 | job training project established pursuant to the Tax | ||||||
| 7 | Increment Allocation Redevelopment Act; | ||||||
| 8 | (P) An amount equal to the amount of the deduction | ||||||
| 9 | used to compute the federal income tax credit for | ||||||
| 10 | restoration of substantial amounts held under claim of | ||||||
| 11 | right for the taxable year pursuant to Section 1341 of | ||||||
| 12 | the Internal Revenue Code or of any itemized deduction | ||||||
| 13 | taken from adjusted gross income in the computation of | ||||||
| 14 | taxable income for restoration of substantial amounts | ||||||
| 15 | held under claim of right for the taxable year; | ||||||
| 16 | (Q) An amount equal to any amounts included in | ||||||
| 17 | such total, received by the taxpayer as an | ||||||
| 18 | acceleration in the payment of life, endowment or | ||||||
| 19 | annuity benefits in advance of the time they would | ||||||
| 20 | otherwise be payable as an indemnity for a terminal | ||||||
| 21 | illness; | ||||||
| 22 | (R) An amount equal to the amount of any federal or | ||||||
| 23 | State bonus paid to veterans of the Persian Gulf War; | ||||||
| 24 | (S) An amount, to the extent included in adjusted | ||||||
| 25 | gross income, equal to the amount of a contribution | ||||||
| 26 | made in the taxable year on behalf of the taxpayer to a | ||||||
| |||||||
| |||||||
| 1 | medical care savings account established under the | ||||||
| 2 | Medical Care Savings Account Act or the Medical Care | ||||||
| 3 | Savings Account Act of 2000 to the extent the | ||||||
| 4 | contribution is accepted by the account administrator | ||||||
| 5 | as provided in that Act; | ||||||
| 6 | (T) An amount, to the extent included in adjusted | ||||||
| 7 | gross income, equal to the amount of interest earned | ||||||
| 8 | in the taxable year on a medical care savings account | ||||||
| 9 | established under the Medical Care Savings Account Act | ||||||
| 10 | or the Medical Care Savings Account Act of 2000 on | ||||||
| 11 | behalf of the taxpayer, other than interest added | ||||||
| 12 | pursuant to item (D-5) of this paragraph (2); | ||||||
| 13 | (U) For one taxable year beginning on or after | ||||||
| 14 | January 1, 1994, an amount equal to the total amount of | ||||||
| 15 | tax imposed and paid under subsections (a) and (b) of | ||||||
| 16 | Section 201 of this Act on grant amounts received by | ||||||
| 17 | the taxpayer under the Nursing Home Grant Assistance | ||||||
| 18 | Act during the taxpayer's taxable years 1992 and 1993; | ||||||
| 19 | (V) Beginning with tax years ending on or after | ||||||
| 20 | December 31, 1995 and ending with tax years ending on | ||||||
| 21 | or before December 31, 2004, an amount equal to the | ||||||
| 22 | amount paid by a taxpayer who is a self-employed | ||||||
| 23 | taxpayer, a partner of a partnership, or a shareholder | ||||||
| 24 | in a Subchapter S corporation for health insurance or | ||||||
| 25 | long-term care insurance for that taxpayer or that | ||||||
| 26 | taxpayer's spouse or dependents, to the extent that | ||||||
| |||||||
| |||||||
| 1 | the amount paid for that health insurance or long-term | ||||||
| 2 | care insurance may be deducted under Section 213 of | ||||||
| 3 | the Internal Revenue Code, has not been deducted on | ||||||
| 4 | the federal income tax return of the taxpayer, and | ||||||
| 5 | does not exceed the taxable income attributable to | ||||||
| 6 | that taxpayer's income, self-employment income, or | ||||||
| 7 | Subchapter S corporation income; except that no | ||||||
| 8 | deduction shall be allowed under this item (V) if the | ||||||
| 9 | taxpayer is eligible to participate in any health | ||||||
| 10 | insurance or long-term care insurance plan of an | ||||||
| 11 | employer of the taxpayer or the taxpayer's spouse. The | ||||||
| 12 | amount of the health insurance and long-term care | ||||||
| 13 | insurance subtracted under this item (V) shall be | ||||||
| 14 | determined by multiplying total health insurance and | ||||||
| 15 | long-term care insurance premiums paid by the taxpayer | ||||||
| 16 | times a number that represents the fractional | ||||||
| 17 | percentage of eligible medical expenses under Section | ||||||
| 18 | 213 of the Internal Revenue Code of 1986 not actually | ||||||
| 19 | deducted on the taxpayer's federal income tax return; | ||||||
| 20 | (W) For taxable years beginning on or after | ||||||
| 21 | January 1, 1998, all amounts included in the | ||||||
| 22 | taxpayer's federal gross income in the taxable year | ||||||
| 23 | from amounts converted from a regular IRA to a Roth | ||||||
| 24 | IRA. This paragraph is exempt from the provisions of | ||||||
| 25 | Section 250; | ||||||
| 26 | (X) For taxable year 1999 and thereafter, an | ||||||
| |||||||
| |||||||
| 1 | amount equal to the amount of any (i) distributions, | ||||||
| 2 | to the extent includible in gross income for federal | ||||||
| 3 | income tax purposes, made to the taxpayer because of | ||||||
| 4 | his or her status as a victim of persecution for racial | ||||||
| 5 | or religious reasons by Nazi Germany or any other Axis | ||||||
| 6 | regime or as an heir of the victim and (ii) items of | ||||||
| 7 | income, to the extent includible in gross income for | ||||||
| 8 | federal income tax purposes, attributable to, derived | ||||||
| 9 | from or in any way related to assets stolen from, | ||||||
| 10 | hidden from, or otherwise lost to a victim of | ||||||
| 11 | persecution for racial or religious reasons by Nazi | ||||||
| 12 | Germany or any other Axis regime immediately prior to, | ||||||
| 13 | during, and immediately after World War II, including, | ||||||
| 14 | but not limited to, interest on the proceeds | ||||||
| 15 | receivable as insurance under policies issued to a | ||||||
| 16 | victim of persecution for racial or religious reasons | ||||||
| 17 | by Nazi Germany or any other Axis regime by European | ||||||
| 18 | insurance companies immediately prior to and during | ||||||
| 19 | World War II; provided, however, this subtraction from | ||||||
| 20 | federal adjusted gross income does not apply to assets | ||||||
| 21 | acquired with such assets or with the proceeds from | ||||||
| 22 | the sale of such assets; provided, further, this | ||||||
| 23 | paragraph shall only apply to a taxpayer who was the | ||||||
| 24 | first recipient of such assets after their recovery | ||||||
| 25 | and who is a victim of persecution for racial or | ||||||
| 26 | religious reasons by Nazi Germany or any other Axis | ||||||
| |||||||
| |||||||
| 1 | regime or as an heir of the victim. The amount of and | ||||||
| 2 | the eligibility for any public assistance, benefit, or | ||||||
| 3 | similar entitlement is not affected by the inclusion | ||||||
| 4 | of items (i) and (ii) of this paragraph in gross income | ||||||
| 5 | for federal income tax purposes. This paragraph is | ||||||
| 6 | exempt from the provisions of Section 250; | ||||||
| 7 | (Y) For taxable years beginning on or after | ||||||
| 8 | January 1, 2002 and ending on or before December 31, | ||||||
| 9 | 2004, moneys contributed in the taxable year to a | ||||||
| 10 | College Savings Pool account under Section 16.5 of the | ||||||
| 11 | State Treasurer Act, except that amounts excluded from | ||||||
| 12 | gross income under Section 529(c)(3)(C)(i) of the | ||||||
| 13 | Internal Revenue Code shall not be considered moneys | ||||||
| 14 | contributed under this subparagraph (Y). For taxable | ||||||
| 15 | years beginning on or after January 1, 2005, a maximum | ||||||
| 16 | of $10,000 contributed in the taxable year to (i) a | ||||||
| 17 | College Savings Pool account under Section 16.5 of the | ||||||
| 18 | State Treasurer Act or (ii) the Illinois Prepaid | ||||||
| 19 | Tuition Trust Fund, except that amounts excluded from | ||||||
| 20 | gross income under Section 529(c)(3)(C)(i) of the | ||||||
| 21 | Internal Revenue Code shall not be considered moneys | ||||||
| 22 | contributed under this subparagraph (Y). For purposes | ||||||
| 23 | of this subparagraph, contributions made by an | ||||||
| 24 | employer on behalf of an employee, or matching | ||||||
| 25 | contributions made by an employee, shall be treated as | ||||||
| 26 | made by the employee. This subparagraph (Y) is exempt | ||||||
| |||||||
| |||||||
| 1 | from the provisions of Section 250; | ||||||
| 2 | (Z) For taxable years 2001 and thereafter, for the | ||||||
| 3 | taxable year in which the bonus depreciation deduction | ||||||
| 4 | is taken on the taxpayer's federal income tax return | ||||||
| 5 | under subsection (k) of Section 168 of the Internal | ||||||
| 6 | Revenue Code and for each applicable taxable year | ||||||
| 7 | thereafter, an amount equal to "x", where: | ||||||
| 8 | (1) "y" equals the amount of the depreciation | ||||||
| 9 | deduction taken for the taxable year on the | ||||||
| 10 | taxpayer's federal income tax return on property | ||||||
| 11 | for which the bonus depreciation deduction was | ||||||
| 12 | taken in any year under subsection (k) of Section | ||||||
| 13 | 168 of the Internal Revenue Code, but not | ||||||
| 14 | including the bonus depreciation deduction; | ||||||
| 15 | (2) for taxable years ending on or before | ||||||
| 16 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
| 17 | and then divided by 70 (or "y" multiplied by | ||||||
| 18 | 0.429); and | ||||||
| 19 | (3) for taxable years ending after December | ||||||
| 20 | 31, 2005: | ||||||
| 21 | (i) for property on which a bonus | ||||||
| 22 | depreciation deduction of 30% of the adjusted | ||||||
| 23 | basis was taken, "x" equals "y" multiplied by | ||||||
| 24 | 30 and then divided by 70 (or "y" multiplied | ||||||
| 25 | by 0.429); | ||||||
| 26 | (ii) for property on which a bonus | ||||||
| |||||||
| |||||||
| 1 | depreciation deduction of 50% of the adjusted | ||||||
| 2 | basis was taken, "x" equals "y" multiplied by | ||||||
| 3 | 1.0; | ||||||
| 4 | (iii) for property on which a bonus | ||||||
| 5 | depreciation deduction of 100% of the adjusted | ||||||
| 6 | basis was taken in a taxable year ending on or | ||||||
| 7 | after December 31, 2021, "x" equals the | ||||||
| 8 | depreciation deduction that would be allowed | ||||||
| 9 | on that property if the taxpayer had made the | ||||||
| 10 | election under Section 168(k)(7) of the | ||||||
| 11 | Internal Revenue Code to not claim bonus | ||||||
| 12 | depreciation on that property; and | ||||||
| 13 | (iv) for property on which a bonus | ||||||
| 14 | depreciation deduction of a percentage other | ||||||
| 15 | than 30%, 50% or 100% of the adjusted basis | ||||||
| 16 | was taken in a taxable year ending on or after | ||||||
| 17 | December 31, 2021, "x" equals "y" multiplied | ||||||
| 18 | by 100 times the percentage bonus depreciation | ||||||
| 19 | on the property (that is, 100(bonus%)) and | ||||||
| 20 | then divided by 100 times 1 minus the | ||||||
| 21 | percentage bonus depreciation on the property | ||||||
| 22 | (that is, 100(1-bonus%)). | ||||||
| 23 | The aggregate amount deducted under this | ||||||
| 24 | subparagraph in all taxable years for any one piece of | ||||||
| 25 | property may not exceed the amount of the bonus | ||||||
| 26 | depreciation deduction taken on that property on the | ||||||
| |||||||
| |||||||
| 1 | taxpayer's federal income tax return under subsection | ||||||
| 2 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
| 3 | subparagraph (Z) is exempt from the provisions of | ||||||
| 4 | Section 250; | ||||||
| 5 | (AA) If the taxpayer sells, transfers, abandons, | ||||||
| 6 | or otherwise disposes of property for which the | ||||||
| 7 | taxpayer was required in any taxable year to make an | ||||||
| 8 | addition modification under subparagraph (D-15), then | ||||||
| 9 | an amount equal to that addition modification. | ||||||
| 10 | If the taxpayer continues to own property through | ||||||
| 11 | the last day of the last tax year for which a | ||||||
| 12 | subtraction is allowed with respect to that property | ||||||
| 13 | under subparagraph (Z) and for which the taxpayer was | ||||||
| 14 | required in any taxable year to make an addition | ||||||
| 15 | modification under subparagraph (D-15), then an amount | ||||||
| 16 | equal to that addition modification. | ||||||
| 17 | The taxpayer is allowed to take the deduction | ||||||
| 18 | under this subparagraph only once with respect to any | ||||||
| 19 | one piece of property. | ||||||
| 20 | This subparagraph (AA) is exempt from the | ||||||
| 21 | provisions of Section 250; | ||||||
| 22 | (BB) Any amount included in adjusted gross income, | ||||||
| 23 | other than salary, received by a driver in a | ||||||
| 24 | ridesharing arrangement using a motor vehicle; | ||||||
| 25 | (CC) The amount of (i) any interest income (net of | ||||||
| 26 | the deductions allocable thereto) taken into account | ||||||
| |||||||
| |||||||
| 1 | for the taxable year with respect to a transaction | ||||||
| 2 | with a taxpayer that is required to make an addition | ||||||
| 3 | modification with respect to such transaction under | ||||||
| 4 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
| 5 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
| 6 | the amount of that addition modification, and (ii) any | ||||||
| 7 | income from intangible property (net of the deductions | ||||||
| 8 | allocable thereto) taken into account for the taxable | ||||||
| 9 | year with respect to a transaction with a taxpayer | ||||||
| 10 | that is required to make an addition modification with | ||||||
| 11 | respect to such transaction under Section | ||||||
| 12 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
| 13 | 203(d)(2)(D-8), but not to exceed the amount of that | ||||||
| 14 | addition modification. This subparagraph (CC) is | ||||||
| 15 | exempt from the provisions of Section 250; | ||||||
| 16 | (DD) An amount equal to the interest income taken | ||||||
| 17 | into account for the taxable year (net of the | ||||||
| 18 | deductions allocable thereto) with respect to | ||||||
| 19 | transactions with (i) a foreign person who would be a | ||||||
| 20 | member of the taxpayer's unitary business group but | ||||||
| 21 | for the fact that the foreign person's business | ||||||
| 22 | activity outside the United States is 80% or more of | ||||||
| 23 | that person's total business activity and (ii) for | ||||||
| 24 | taxable years ending on or after December 31, 2008, to | ||||||
| 25 | a person who would be a member of the same unitary | ||||||
| 26 | business group but for the fact that the person is | ||||||
| |||||||
| |||||||
| 1 | prohibited under Section 1501(a)(27) from being | ||||||
| 2 | included in the unitary business group because he or | ||||||
| 3 | she is ordinarily required to apportion business | ||||||
| 4 | income under different subsections of Section 304, but | ||||||
| 5 | not to exceed the addition modification required to be | ||||||
| 6 | made for the same taxable year under Section | ||||||
| 7 | 203(a)(2)(D-17) for interest paid, accrued, or | ||||||
| 8 | incurred, directly or indirectly, to the same person. | ||||||
| 9 | This subparagraph (DD) is exempt from the provisions | ||||||
| 10 | of Section 250; | ||||||
| 11 | (EE) An amount equal to the income from intangible | ||||||
| 12 | property taken into account for the taxable year (net | ||||||
| 13 | of the deductions allocable thereto) with respect to | ||||||
| 14 | transactions with (i) a foreign person who would be a | ||||||
| 15 | member of the taxpayer's unitary business group but | ||||||
| 16 | for the fact that the foreign person's business | ||||||
| 17 | activity outside the United States is 80% or more of | ||||||
| 18 | that person's total business activity and (ii) for | ||||||
| 19 | taxable years ending on or after December 31, 2008, to | ||||||
| 20 | a person who would be a member of the same unitary | ||||||
| 21 | business group but for the fact that the person is | ||||||
| 22 | prohibited under Section 1501(a)(27) from being | ||||||
| 23 | included in the unitary business group because he or | ||||||
| 24 | she is ordinarily required to apportion business | ||||||
| 25 | income under different subsections of Section 304, but | ||||||
| 26 | not to exceed the addition modification required to be | ||||||
| |||||||
| |||||||
| 1 | made for the same taxable year under Section | ||||||
| 2 | 203(a)(2)(D-18) for intangible expenses and costs | ||||||
| 3 | paid, accrued, or incurred, directly or indirectly, to | ||||||
| 4 | the same foreign person. This subparagraph (EE) is | ||||||
| 5 | exempt from the provisions of Section 250; | ||||||
| 6 | (FF) An amount equal to any amount awarded to the | ||||||
| 7 | taxpayer during the taxable year by the Court of | ||||||
| 8 | Claims under subsection (c) of Section 8 of the Court | ||||||
| 9 | of Claims Act for time unjustly served in a State | ||||||
| 10 | prison. This subparagraph (FF) is exempt from the | ||||||
| 11 | provisions of Section 250; | ||||||
| 12 | (GG) For taxable years ending on or after December | ||||||
| 13 | 31, 2011, in the case of a taxpayer who was required to | ||||||
| 14 | add back any insurance premiums under Section | ||||||
| 15 | 203(a)(2)(D-19), such taxpayer may elect to subtract | ||||||
| 16 | that part of a reimbursement received from the | ||||||
| 17 | insurance company equal to the amount of the expense | ||||||
| 18 | or loss (including expenses incurred by the insurance | ||||||
| 19 | company) that would have been taken into account as a | ||||||
| 20 | deduction for federal income tax purposes if the | ||||||
| 21 | expense or loss had been uninsured. If a taxpayer | ||||||
| 22 | makes the election provided for by this subparagraph | ||||||
| 23 | (GG), the insurer to which the premiums were paid must | ||||||
| 24 | add back to income the amount subtracted by the | ||||||
| 25 | taxpayer pursuant to this subparagraph (GG). This | ||||||
| 26 | subparagraph (GG) is exempt from the provisions of | ||||||
| |||||||
| |||||||
| 1 | Section 250; | ||||||
| 2 | (HH) For taxable years beginning on or after | ||||||
| 3 | January 1, 2018 and prior to January 1, 2028, a maximum | ||||||
| 4 | of $10,000 contributed in the taxable year to a | ||||||
| 5 | qualified ABLE account under Section 16.6 of the State | ||||||
| 6 | Treasurer Act, except that amounts excluded from gross | ||||||
| 7 | income under Section 529(c)(3)(C)(i) or Section | ||||||
| 8 | 529A(c)(1)(C) of the Internal Revenue Code shall not | ||||||
| 9 | be considered moneys contributed under this | ||||||
| 10 | subparagraph (HH). For purposes of this subparagraph | ||||||
| 11 | (HH), contributions made by an employer on behalf of | ||||||
| 12 | an employee, or matching contributions made by an | ||||||
| 13 | employee, shall be treated as made by the employee; | ||||||
| 14 | (II) For taxable years that begin on or after | ||||||
| 15 | January 1, 2021 and begin before January 1, 2026, the | ||||||
| 16 | amount that is included in the taxpayer's federal | ||||||
| 17 | adjusted gross income pursuant to Section 61 of the | ||||||
| 18 | Internal Revenue Code as discharge of indebtedness | ||||||
| 19 | attributable to student loan forgiveness and that is | ||||||
| 20 | not excluded from the taxpayer's federal adjusted | ||||||
| 21 | gross income pursuant to paragraph (5) of subsection | ||||||
| 22 | (f) of Section 108 of the Internal Revenue Code; and | ||||||
| 23 | (JJ) For taxable years beginning on or after | ||||||
| 24 | January 1, 2023, for any cannabis establishment | ||||||
| 25 | operating in this State and licensed under the | ||||||
| 26 | Cannabis Regulation and Tax Act or any cannabis | ||||||
| |||||||
| |||||||
| 1 | cultivation center or medical cannabis dispensing | ||||||
| 2 | organization operating in this State and licensed | ||||||
| 3 | under the Compassionate Use of Medical Cannabis | ||||||
| 4 | Program Act, an amount equal to the deductions that | ||||||
| 5 | were disallowed under Section 280E of the Internal | ||||||
| 6 | Revenue Code for the taxable year and that would not be | ||||||
| 7 | added back under this subsection. The provisions of | ||||||
| 8 | this subparagraph (JJ) are exempt from the provisions | ||||||
| 9 | of Section 250; and . | ||||||
| 10 | (KK) (JJ) To the extent includible in gross income | ||||||
| 11 | for federal income tax purposes, any amount awarded or | ||||||
| 12 | paid to the taxpayer as a result of a judgment or | ||||||
| 13 | settlement for fertility fraud as provided in Section | ||||||
| 14 | 15 of the Illinois Fertility Fraud Act, donor | ||||||
| 15 | fertility fraud as provided in Section 20 of the | ||||||
| 16 | Illinois Fertility Fraud Act, or similar action in | ||||||
| 17 | another state.
| ||||||
| 18 | (b) Corporations. | ||||||
| 19 | (1) In general. In the case of a corporation, base | ||||||
| 20 | income means an amount equal to the taxpayer's taxable | ||||||
| 21 | income for the taxable year as modified by paragraph (2). | ||||||
| 22 | (2) Modifications. The taxable income referred to in | ||||||
| 23 | paragraph (1) shall be modified by adding thereto the sum | ||||||
| 24 | of the following amounts: | ||||||
| 25 | (A) An amount equal to all amounts paid or accrued | ||||||
| |||||||
| |||||||
| 1 | to the taxpayer as interest and all distributions | ||||||
| 2 | received from regulated investment companies during | ||||||
| 3 | the taxable year to the extent excluded from gross | ||||||
| 4 | income in the computation of taxable income; | ||||||
| 5 | (B) An amount equal to the amount of tax imposed by | ||||||
| 6 | this Act to the extent deducted from gross income in | ||||||
| 7 | the computation of taxable income for the taxable | ||||||
| 8 | year; | ||||||
| 9 | (C) In the case of a regulated investment company, | ||||||
| 10 | an amount equal to the excess of (i) the net long-term | ||||||
| 11 | capital gain for the taxable year, over (ii) the | ||||||
| 12 | amount of the capital gain dividends designated as | ||||||
| 13 | such in accordance with Section 852(b)(3)(C) of the | ||||||
| 14 | Internal Revenue Code and any amount designated under | ||||||
| 15 | Section 852(b)(3)(D) of the Internal Revenue Code, | ||||||
| 16 | attributable to the taxable year (this amendatory Act | ||||||
| 17 | of 1995 (Public Act 89-89) is declarative of existing | ||||||
| 18 | law and is not a new enactment); | ||||||
| 19 | (D) The amount of any net operating loss deduction | ||||||
| 20 | taken in arriving at taxable income, other than a net | ||||||
| 21 | operating loss carried forward from a taxable year | ||||||
| 22 | ending prior to December 31, 1986; | ||||||
| 23 | (E) For taxable years in which a net operating | ||||||
| 24 | loss carryback or carryforward from a taxable year | ||||||
| 25 | ending prior to December 31, 1986 is an element of | ||||||
| 26 | taxable income under paragraph (1) of subsection (e) | ||||||
| |||||||
| |||||||
| 1 | or subparagraph (E) of paragraph (2) of subsection | ||||||
| 2 | (e), the amount by which addition modifications other | ||||||
| 3 | than those provided by this subparagraph (E) exceeded | ||||||
| 4 | subtraction modifications in such earlier taxable | ||||||
| 5 | year, with the following limitations applied in the | ||||||
| 6 | order that they are listed: | ||||||
| 7 | (i) the addition modification relating to the | ||||||
| 8 | net operating loss carried back or forward to the | ||||||
| 9 | taxable year from any taxable year ending prior to | ||||||
| 10 | December 31, 1986 shall be reduced by the amount | ||||||
| 11 | of addition modification under this subparagraph | ||||||
| 12 | (E) which related to that net operating loss and | ||||||
| 13 | which was taken into account in calculating the | ||||||
| 14 | base income of an earlier taxable year, and | ||||||
| 15 | (ii) the addition modification relating to the | ||||||
| 16 | net operating loss carried back or forward to the | ||||||
| 17 | taxable year from any taxable year ending prior to | ||||||
| 18 | December 31, 1986 shall not exceed the amount of | ||||||
| 19 | such carryback or carryforward; | ||||||
| 20 | For taxable years in which there is a net | ||||||
| 21 | operating loss carryback or carryforward from more | ||||||
| 22 | than one other taxable year ending prior to December | ||||||
| 23 | 31, 1986, the addition modification provided in this | ||||||
| 24 | subparagraph (E) shall be the sum of the amounts | ||||||
| 25 | computed independently under the preceding provisions | ||||||
| 26 | of this subparagraph (E) for each such taxable year; | ||||||
| |||||||
| |||||||
| 1 | (E-5) For taxable years ending after December 31, | ||||||
| 2 | 1997, an amount equal to any eligible remediation | ||||||
| 3 | costs that the corporation deducted in computing | ||||||
| 4 | adjusted gross income and for which the corporation | ||||||
| 5 | claims a credit under subsection (l) of Section 201; | ||||||
| 6 | (E-10) For taxable years 2001 and thereafter, an | ||||||
| 7 | amount equal to the bonus depreciation deduction taken | ||||||
| 8 | on the taxpayer's federal income tax return for the | ||||||
| 9 | taxable year under subsection (k) of Section 168 of | ||||||
| 10 | the Internal Revenue Code; | ||||||
| 11 | (E-11) If the taxpayer sells, transfers, abandons, | ||||||
| 12 | or otherwise disposes of property for which the | ||||||
| 13 | taxpayer was required in any taxable year to make an | ||||||
| 14 | addition modification under subparagraph (E-10), then | ||||||
| 15 | an amount equal to the aggregate amount of the | ||||||
| 16 | deductions taken in all taxable years under | ||||||
| 17 | subparagraph (T) with respect to that property. | ||||||
| 18 | If the taxpayer continues to own property through | ||||||
| 19 | the last day of the last tax year for which a | ||||||
| 20 | subtraction is allowed with respect to that property | ||||||
| 21 | under subparagraph (T) and for which the taxpayer was | ||||||
| 22 | allowed in any taxable year to make a subtraction | ||||||
| 23 | modification under subparagraph (T), then an amount | ||||||
| 24 | equal to that subtraction modification. | ||||||
| 25 | The taxpayer is required to make the addition | ||||||
| 26 | modification under this subparagraph only once with | ||||||
| |||||||
| |||||||
| 1 | respect to any one piece of property; | ||||||
| 2 | (E-12) An amount equal to the amount otherwise | ||||||
| 3 | allowed as a deduction in computing base income for | ||||||
| 4 | interest paid, accrued, or incurred, directly or | ||||||
| 5 | indirectly, (i) for taxable years ending on or after | ||||||
| 6 | December 31, 2004, to a foreign person who would be a | ||||||
| 7 | member of the same unitary business group but for the | ||||||
| 8 | fact the foreign person's business activity outside | ||||||
| 9 | the United States is 80% or more of the foreign | ||||||
| 10 | person's total business activity and (ii) for taxable | ||||||
| 11 | years ending on or after December 31, 2008, to a person | ||||||
| 12 | who would be a member of the same unitary business | ||||||
| 13 | group but for the fact that the person is prohibited | ||||||
| 14 | under Section 1501(a)(27) from being included in the | ||||||
| 15 | unitary business group because he or she is ordinarily | ||||||
| 16 | required to apportion business income under different | ||||||
| 17 | subsections of Section 304. The addition modification | ||||||
| 18 | required by this subparagraph shall be reduced to the | ||||||
| 19 | extent that dividends were included in base income of | ||||||
| 20 | the unitary group for the same taxable year and | ||||||
| 21 | received by the taxpayer or by a member of the | ||||||
| 22 | taxpayer's unitary business group (including amounts | ||||||
| 23 | included in gross income pursuant to Sections 951 | ||||||
| 24 | through 964 of the Internal Revenue Code and amounts | ||||||
| 25 | included in gross income under Section 78 of the | ||||||
| 26 | Internal Revenue Code) with respect to the stock of | ||||||
| |||||||
| |||||||
| 1 | the same person to whom the interest was paid, | ||||||
| 2 | accrued, or incurred. | ||||||
| 3 | This paragraph shall not apply to the following: | ||||||
| 4 | (i) an item of interest paid, accrued, or | ||||||
| 5 | incurred, directly or indirectly, to a person who | ||||||
| 6 | is subject in a foreign country or state, other | ||||||
| 7 | than a state which requires mandatory unitary | ||||||
| 8 | reporting, to a tax on or measured by net income | ||||||
| 9 | with respect to such interest; or | ||||||
| 10 | (ii) an item of interest paid, accrued, or | ||||||
| 11 | incurred, directly or indirectly, to a person if | ||||||
| 12 | the taxpayer can establish, based on a | ||||||
| 13 | preponderance of the evidence, both of the | ||||||
| 14 | following: | ||||||
| 15 | (a) the person, during the same taxable | ||||||
| 16 | year, paid, accrued, or incurred, the interest | ||||||
| 17 | to a person that is not a related member, and | ||||||
| 18 | (b) the transaction giving rise to the | ||||||
| 19 | interest expense between the taxpayer and the | ||||||
| 20 | person did not have as a principal purpose the | ||||||
| 21 | avoidance of Illinois income tax, and is paid | ||||||
| 22 | pursuant to a contract or agreement that | ||||||
| 23 | reflects an arm's-length interest rate and | ||||||
| 24 | terms; or | ||||||
| 25 | (iii) the taxpayer can establish, based on | ||||||
| 26 | clear and convincing evidence, that the interest | ||||||
| |||||||
| |||||||
| 1 | paid, accrued, or incurred relates to a contract | ||||||
| 2 | or agreement entered into at arm's-length rates | ||||||
| 3 | and terms and the principal purpose for the | ||||||
| 4 | payment is not federal or Illinois tax avoidance; | ||||||
| 5 | or | ||||||
| 6 | (iv) an item of interest paid, accrued, or | ||||||
| 7 | incurred, directly or indirectly, to a person if | ||||||
| 8 | the taxpayer establishes by clear and convincing | ||||||
| 9 | evidence that the adjustments are unreasonable; or | ||||||
| 10 | if the taxpayer and the Director agree in writing | ||||||
| 11 | to the application or use of an alternative method | ||||||
| 12 | of apportionment under Section 304(f). | ||||||
| 13 | Nothing in this subsection shall preclude the | ||||||
| 14 | Director from making any other adjustment | ||||||
| 15 | otherwise allowed under Section 404 of this Act | ||||||
| 16 | for any tax year beginning after the effective | ||||||
| 17 | date of this amendment provided such adjustment is | ||||||
| 18 | made pursuant to regulation adopted by the | ||||||
| 19 | Department and such regulations provide methods | ||||||
| 20 | and standards by which the Department will utilize | ||||||
| 21 | its authority under Section 404 of this Act; | ||||||
| 22 | (E-13) An amount equal to the amount of intangible | ||||||
| 23 | expenses and costs otherwise allowed as a deduction in | ||||||
| 24 | computing base income, and that were paid, accrued, or | ||||||
| 25 | incurred, directly or indirectly, (i) for taxable | ||||||
| 26 | years ending on or after December 31, 2004, to a | ||||||
| |||||||
| |||||||
| 1 | foreign person who would be a member of the same | ||||||
| 2 | unitary business group but for the fact that the | ||||||
| 3 | foreign person's business activity outside the United | ||||||
| 4 | States is 80% or more of that person's total business | ||||||
| 5 | activity and (ii) for taxable years ending on or after | ||||||
| 6 | December 31, 2008, to a person who would be a member of | ||||||
| 7 | the same unitary business group but for the fact that | ||||||
| 8 | the person is prohibited under Section 1501(a)(27) | ||||||
| 9 | from being included in the unitary business group | ||||||
| 10 | because he or she is ordinarily required to apportion | ||||||
| 11 | business income under different subsections of Section | ||||||
| 12 | 304. The addition modification required by this | ||||||
| 13 | subparagraph shall be reduced to the extent that | ||||||
| 14 | dividends were included in base income of the unitary | ||||||
| 15 | group for the same taxable year and received by the | ||||||
| 16 | taxpayer or by a member of the taxpayer's unitary | ||||||
| 17 | business group (including amounts included in gross | ||||||
| 18 | income pursuant to Sections 951 through 964 of the | ||||||
| 19 | Internal Revenue Code and amounts included in gross | ||||||
| 20 | income under Section 78 of the Internal Revenue Code) | ||||||
| 21 | with respect to the stock of the same person to whom | ||||||
| 22 | the intangible expenses and costs were directly or | ||||||
| 23 | indirectly paid, incurred, or accrued. The preceding | ||||||
| 24 | sentence shall not apply to the extent that the same | ||||||
| 25 | dividends caused a reduction to the addition | ||||||
| 26 | modification required under Section 203(b)(2)(E-12) of | ||||||
| |||||||
| |||||||
| 1 | this Act. As used in this subparagraph, the term | ||||||
| 2 | "intangible expenses and costs" includes (1) expenses, | ||||||
| 3 | losses, and costs for, or related to, the direct or | ||||||
| 4 | indirect acquisition, use, maintenance or management, | ||||||
| 5 | ownership, sale, exchange, or any other disposition of | ||||||
| 6 | intangible property; (2) losses incurred, directly or | ||||||
| 7 | indirectly, from factoring transactions or discounting | ||||||
| 8 | transactions; (3) royalty, patent, technical, and | ||||||
| 9 | copyright fees; (4) licensing fees; and (5) other | ||||||
| 10 | similar expenses and costs. For purposes of this | ||||||
| 11 | subparagraph, "intangible property" includes patents, | ||||||
| 12 | patent applications, trade names, trademarks, service | ||||||
| 13 | marks, copyrights, mask works, trade secrets, and | ||||||
| 14 | similar types of intangible assets. | ||||||
| 15 | This paragraph shall not apply to the following: | ||||||
| 16 | (i) any item of intangible expenses or costs | ||||||
| 17 | paid, accrued, or incurred, directly or | ||||||
| 18 | indirectly, from a transaction with a person who | ||||||
| 19 | is subject in a foreign country or state, other | ||||||
| 20 | than a state which requires mandatory unitary | ||||||
| 21 | reporting, to a tax on or measured by net income | ||||||
| 22 | with respect to such item; or | ||||||
| 23 | (ii) any item of intangible expense or cost | ||||||
| 24 | paid, accrued, or incurred, directly or | ||||||
| 25 | indirectly, if the taxpayer can establish, based | ||||||
| 26 | on a preponderance of the evidence, both of the | ||||||
| |||||||
| |||||||
| 1 | following: | ||||||
| 2 | (a) the person during the same taxable | ||||||
| 3 | year paid, accrued, or incurred, the | ||||||
| 4 | intangible expense or cost to a person that is | ||||||
| 5 | not a related member, and | ||||||
| 6 | (b) the transaction giving rise to the | ||||||
| 7 | intangible expense or cost between the | ||||||
| 8 | taxpayer and the person did not have as a | ||||||
| 9 | principal purpose the avoidance of Illinois | ||||||
| 10 | income tax, and is paid pursuant to a contract | ||||||
| 11 | or agreement that reflects arm's-length terms; | ||||||
| 12 | or | ||||||
| 13 | (iii) any item of intangible expense or cost | ||||||
| 14 | paid, accrued, or incurred, directly or | ||||||
| 15 | indirectly, from a transaction with a person if | ||||||
| 16 | the taxpayer establishes by clear and convincing | ||||||
| 17 | evidence, that the adjustments are unreasonable; | ||||||
| 18 | or if the taxpayer and the Director agree in | ||||||
| 19 | writing to the application or use of an | ||||||
| 20 | alternative method of apportionment under Section | ||||||
| 21 | 304(f); | ||||||
| 22 | Nothing in this subsection shall preclude the | ||||||
| 23 | Director from making any other adjustment | ||||||
| 24 | otherwise allowed under Section 404 of this Act | ||||||
| 25 | for any tax year beginning after the effective | ||||||
| 26 | date of this amendment provided such adjustment is | ||||||
| |||||||
| |||||||
| 1 | made pursuant to regulation adopted by the | ||||||
| 2 | Department and such regulations provide methods | ||||||
| 3 | and standards by which the Department will utilize | ||||||
| 4 | its authority under Section 404 of this Act; | ||||||
| 5 | (E-14) For taxable years ending on or after | ||||||
| 6 | December 31, 2008, an amount equal to the amount of | ||||||
| 7 | insurance premium expenses and costs otherwise allowed | ||||||
| 8 | as a deduction in computing base income, and that were | ||||||
| 9 | paid, accrued, or incurred, directly or indirectly, to | ||||||
| 10 | a person who would be a member of the same unitary | ||||||
| 11 | business group but for the fact that the person is | ||||||
| 12 | prohibited under Section 1501(a)(27) from being | ||||||
| 13 | included in the unitary business group because he or | ||||||
| 14 | she is ordinarily required to apportion business | ||||||
| 15 | income under different subsections of Section 304. The | ||||||
| 16 | addition modification required by this subparagraph | ||||||
| 17 | shall be reduced to the extent that dividends were | ||||||
| 18 | included in base income of the unitary group for the | ||||||
| 19 | same taxable year and received by the taxpayer or by a | ||||||
| 20 | member of the taxpayer's unitary business group | ||||||
| 21 | (including amounts included in gross income under | ||||||
| 22 | Sections 951 through 964 of the Internal Revenue Code | ||||||
| 23 | and amounts included in gross income under Section 78 | ||||||
| 24 | of the Internal Revenue Code) with respect to the | ||||||
| 25 | stock of the same person to whom the premiums and costs | ||||||
| 26 | were directly or indirectly paid, incurred, or | ||||||
| |||||||
| |||||||
| 1 | accrued. The preceding sentence does not apply to the | ||||||
| 2 | extent that the same dividends caused a reduction to | ||||||
| 3 | the addition modification required under Section | ||||||
| 4 | 203(b)(2)(E-12) or Section 203(b)(2)(E-13) of this | ||||||
| 5 | Act; | ||||||
| 6 | (E-15) For taxable years beginning after December | ||||||
| 7 | 31, 2008, any deduction for dividends paid by a | ||||||
| 8 | captive real estate investment trust that is allowed | ||||||
| 9 | to a real estate investment trust under Section | ||||||
| 10 | 857(b)(2)(B) of the Internal Revenue Code for | ||||||
| 11 | dividends paid; | ||||||
| 12 | (E-16) An amount equal to the credit allowable to | ||||||
| 13 | the taxpayer under Section 218(a) of this Act, | ||||||
| 14 | determined without regard to Section 218(c) of this | ||||||
| 15 | Act; | ||||||
| 16 | (E-17) For taxable years ending on or after | ||||||
| 17 | December 31, 2017, an amount equal to the deduction | ||||||
| 18 | allowed under Section 199 of the Internal Revenue Code | ||||||
| 19 | for the taxable year; | ||||||
| 20 | (E-18) for taxable years beginning after December | ||||||
| 21 | 31, 2018, an amount equal to the deduction allowed | ||||||
| 22 | under Section 250(a)(1)(A) of the Internal Revenue | ||||||
| 23 | Code for the taxable year; | ||||||
| 24 | (E-19) for taxable years ending on or after June | ||||||
| 25 | 30, 2021, an amount equal to the deduction allowed | ||||||
| 26 | under Section 250(a)(1)(B)(i) of the Internal Revenue | ||||||
| |||||||
| |||||||
| 1 | Code for the taxable year; | ||||||
| 2 | (E-20) for taxable years ending on or after June | ||||||
| 3 | 30, 2021, an amount equal to the deduction allowed | ||||||
| 4 | under Sections 243(e) and 245A(a) of the Internal | ||||||
| 5 | Revenue Code for the taxable year; . | ||||||
| 6 | (E-21) the amount that is claimed as a federal | ||||||
| 7 | deduction when computing the taxpayer's federal | ||||||
| 8 | taxable income for the taxable year and that is | ||||||
| 9 | attributable to an endowment gift for which the | ||||||
| 10 | taxpayer receives a credit under the Illinois Gives | ||||||
| 11 | Tax Credit Act; | ||||||
| 12 | and by deducting from the total so obtained the sum of the | ||||||
| 13 | following amounts: | ||||||
| 14 | (F) An amount equal to the amount of any tax | ||||||
| 15 | imposed by this Act which was refunded to the taxpayer | ||||||
| 16 | and included in such total for the taxable year; | ||||||
| 17 | (G) An amount equal to any amount included in such | ||||||
| 18 | total under Section 78 of the Internal Revenue Code; | ||||||
| 19 | (H) In the case of a regulated investment company, | ||||||
| 20 | an amount equal to the amount of exempt interest | ||||||
| 21 | dividends as defined in subsection (b)(5) of Section | ||||||
| 22 | 852 of the Internal Revenue Code, paid to shareholders | ||||||
| 23 | for the taxable year; | ||||||
| 24 | (I) With the exception of any amounts subtracted | ||||||
| 25 | under subparagraph (J), an amount equal to the sum of | ||||||
| 26 | all amounts disallowed as deductions by (i) Sections | ||||||
| |||||||
| |||||||
| 1 | 171(a)(2) and 265(a)(2) and amounts disallowed as | ||||||
| 2 | interest expense by Section 291(a)(3) of the Internal | ||||||
| 3 | Revenue Code, and all amounts of expenses allocable to | ||||||
| 4 | interest and disallowed as deductions by Section | ||||||
| 5 | 265(a)(1) of the Internal Revenue Code; and (ii) for | ||||||
| 6 | taxable years ending on or after August 13, 1999, | ||||||
| 7 | Sections 171(a)(2), 265, 280C, 291(a)(3), and | ||||||
| 8 | 832(b)(5)(B)(i) of the Internal Revenue Code, plus, | ||||||
| 9 | for tax years ending on or after December 31, 2011, | ||||||
| 10 | amounts disallowed as deductions by Section 45G(e)(3) | ||||||
| 11 | of the Internal Revenue Code and, for taxable years | ||||||
| 12 | ending on or after December 31, 2008, any amount | ||||||
| 13 | included in gross income under Section 87 of the | ||||||
| 14 | Internal Revenue Code and the policyholders' share of | ||||||
| 15 | tax-exempt interest of a life insurance company under | ||||||
| 16 | Section 807(a)(2)(B) of the Internal Revenue Code (in | ||||||
| 17 | the case of a life insurance company with gross income | ||||||
| 18 | from a decrease in reserves for the tax year) or | ||||||
| 19 | Section 807(b)(1)(B) of the Internal Revenue Code (in | ||||||
| 20 | the case of a life insurance company allowed a | ||||||
| 21 | deduction for an increase in reserves for the tax | ||||||
| 22 | year); the provisions of this subparagraph are exempt | ||||||
| 23 | from the provisions of Section 250; | ||||||
| 24 | (J) An amount equal to all amounts included in | ||||||
| 25 | such total which are exempt from taxation by this | ||||||
| 26 | State either by reason of its statutes or Constitution | ||||||
| |||||||
| |||||||
| 1 | or by reason of the Constitution, treaties or statutes | ||||||
| 2 | of the United States; provided that, in the case of any | ||||||
| 3 | statute of this State that exempts income derived from | ||||||
| 4 | bonds or other obligations from the tax imposed under | ||||||
| 5 | this Act, the amount exempted shall be the interest | ||||||
| 6 | net of bond premium amortization; | ||||||
| 7 | (K) An amount equal to those dividends included in | ||||||
| 8 | such total which were paid by a corporation which | ||||||
| 9 | conducts business operations in a River Edge | ||||||
| 10 | Redevelopment Zone or zones created under the River | ||||||
| 11 | Edge Redevelopment Zone Act and conducts substantially | ||||||
| 12 | all of its operations in a River Edge Redevelopment | ||||||
| 13 | Zone or zones. This subparagraph (K) is exempt from | ||||||
| 14 | the provisions of Section 250; | ||||||
| 15 | (L) An amount equal to those dividends included in | ||||||
| 16 | such total that were paid by a corporation that | ||||||
| 17 | conducts business operations in a federally designated | ||||||
| 18 | Foreign Trade Zone or Sub-Zone and that is designated | ||||||
| 19 | a High Impact Business located in Illinois; provided | ||||||
| 20 | that dividends eligible for the deduction provided in | ||||||
| 21 | subparagraph (K) of paragraph 2 of this subsection | ||||||
| 22 | shall not be eligible for the deduction provided under | ||||||
| 23 | this subparagraph (L); | ||||||
| 24 | (M) For any taxpayer that is a financial | ||||||
| 25 | organization within the meaning of Section 304(c) of | ||||||
| 26 | this Act, an amount included in such total as interest | ||||||
| |||||||
| |||||||
| 1 | income from a loan or loans made by such taxpayer to a | ||||||
| 2 | borrower, to the extent that such a loan is secured by | ||||||
| 3 | property which is eligible for the River Edge | ||||||
| 4 | Redevelopment Zone Investment Credit. To determine the | ||||||
| 5 | portion of a loan or loans that is secured by property | ||||||
| 6 | eligible for a Section 201(f) investment credit to the | ||||||
| 7 | borrower, the entire principal amount of the loan or | ||||||
| 8 | loans between the taxpayer and the borrower should be | ||||||
| 9 | divided into the basis of the Section 201(f) | ||||||
| 10 | investment credit property which secures the loan or | ||||||
| 11 | loans, using for this purpose the original basis of | ||||||
| 12 | such property on the date that it was placed in service | ||||||
| 13 | in the River Edge Redevelopment Zone. The subtraction | ||||||
| 14 | modification available to the taxpayer in any year | ||||||
| 15 | under this subsection shall be that portion of the | ||||||
| 16 | total interest paid by the borrower with respect to | ||||||
| 17 | such loan attributable to the eligible property as | ||||||
| 18 | calculated under the previous sentence. This | ||||||
| 19 | subparagraph (M) is exempt from the provisions of | ||||||
| 20 | Section 250; | ||||||
| 21 | (M-1) For any taxpayer that is a financial | ||||||
| 22 | organization within the meaning of Section 304(c) of | ||||||
| 23 | this Act, an amount included in such total as interest | ||||||
| 24 | income from a loan or loans made by such taxpayer to a | ||||||
| 25 | borrower, to the extent that such a loan is secured by | ||||||
| 26 | property which is eligible for the High Impact | ||||||
| |||||||
| |||||||
| 1 | Business Investment Credit. To determine the portion | ||||||
| 2 | of a loan or loans that is secured by property eligible | ||||||
| 3 | for a Section 201(h) investment credit to the | ||||||
| 4 | borrower, the entire principal amount of the loan or | ||||||
| 5 | loans between the taxpayer and the borrower should be | ||||||
| 6 | divided into the basis of the Section 201(h) | ||||||
| 7 | investment credit property which secures the loan or | ||||||
| 8 | loans, using for this purpose the original basis of | ||||||
| 9 | such property on the date that it was placed in service | ||||||
| 10 | in a federally designated Foreign Trade Zone or | ||||||
| 11 | Sub-Zone located in Illinois. No taxpayer that is | ||||||
| 12 | eligible for the deduction provided in subparagraph | ||||||
| 13 | (M) of paragraph (2) of this subsection shall be | ||||||
| 14 | eligible for the deduction provided under this | ||||||
| 15 | subparagraph (M-1). The subtraction modification | ||||||
| 16 | available to taxpayers in any year under this | ||||||
| 17 | subsection shall be that portion of the total interest | ||||||
| 18 | paid by the borrower with respect to such loan | ||||||
| 19 | attributable to the eligible property as calculated | ||||||
| 20 | under the previous sentence; | ||||||
| 21 | (N) Two times any contribution made during the | ||||||
| 22 | taxable year to a designated zone organization to the | ||||||
| 23 | extent that the contribution (i) qualifies as a | ||||||
| 24 | charitable contribution under subsection (c) of | ||||||
| 25 | Section 170 of the Internal Revenue Code and (ii) | ||||||
| 26 | must, by its terms, be used for a project approved by | ||||||
| |||||||
| |||||||
| 1 | the Department of Commerce and Economic Opportunity | ||||||
| 2 | under Section 11 of the Illinois Enterprise Zone Act | ||||||
| 3 | or under Section 10-10 of the River Edge Redevelopment | ||||||
| 4 | Zone Act. This subparagraph (N) is exempt from the | ||||||
| 5 | provisions of Section 250; | ||||||
| 6 | (O) An amount equal to: (i) 85% for taxable years | ||||||
| 7 | ending on or before December 31, 1992, or, a | ||||||
| 8 | percentage equal to the percentage allowable under | ||||||
| 9 | Section 243(a)(1) of the Internal Revenue Code of 1986 | ||||||
| 10 | for taxable years ending after December 31, 1992, of | ||||||
| 11 | the amount by which dividends included in taxable | ||||||
| 12 | income and received from a corporation that is not | ||||||
| 13 | created or organized under the laws of the United | ||||||
| 14 | States or any state or political subdivision thereof, | ||||||
| 15 | including, for taxable years ending on or after | ||||||
| 16 | December 31, 1988, dividends received or deemed | ||||||
| 17 | received or paid or deemed paid under Sections 951 | ||||||
| 18 | through 965 of the Internal Revenue Code, exceed the | ||||||
| 19 | amount of the modification provided under subparagraph | ||||||
| 20 | (G) of paragraph (2) of this subsection (b) which is | ||||||
| 21 | related to such dividends, and including, for taxable | ||||||
| 22 | years ending on or after December 31, 2008, dividends | ||||||
| 23 | received from a captive real estate investment trust; | ||||||
| 24 | plus (ii) 100% of the amount by which dividends, | ||||||
| 25 | included in taxable income and received, including, | ||||||
| 26 | for taxable years ending on or after December 31, | ||||||
| |||||||
| |||||||
| 1 | 1988, dividends received or deemed received or paid or | ||||||
| 2 | deemed paid under Sections 951 through 964 of the | ||||||
| 3 | Internal Revenue Code and including, for taxable years | ||||||
| 4 | ending on or after December 31, 2008, dividends | ||||||
| 5 | received from a captive real estate investment trust, | ||||||
| 6 | from any such corporation specified in clause (i) that | ||||||
| 7 | would but for the provisions of Section 1504(b)(3) of | ||||||
| 8 | the Internal Revenue Code be treated as a member of the | ||||||
| 9 | affiliated group which includes the dividend | ||||||
| 10 | recipient, exceed the amount of the modification | ||||||
| 11 | provided under subparagraph (G) of paragraph (2) of | ||||||
| 12 | this subsection (b) which is related to such | ||||||
| 13 | dividends. For taxable years ending on or after June | ||||||
| 14 | 30, 2021, (i) for purposes of this subparagraph, the | ||||||
| 15 | term "dividend" does not include any amount treated as | ||||||
| 16 | a dividend under Section 1248 of the Internal Revenue | ||||||
| 17 | Code, and (ii) this subparagraph shall not apply to | ||||||
| 18 | dividends for which a deduction is allowed under | ||||||
| 19 | Section 245(a) of the Internal Revenue Code. This | ||||||
| 20 | subparagraph (O) is exempt from the provisions of | ||||||
| 21 | Section 250 of this Act; | ||||||
| 22 | (P) An amount equal to any contribution made to a | ||||||
| 23 | job training project established pursuant to the Tax | ||||||
| 24 | Increment Allocation Redevelopment Act; | ||||||
| 25 | (Q) An amount equal to the amount of the deduction | ||||||
| 26 | used to compute the federal income tax credit for | ||||||
| |||||||
| |||||||
| 1 | restoration of substantial amounts held under claim of | ||||||
| 2 | right for the taxable year pursuant to Section 1341 of | ||||||
| 3 | the Internal Revenue Code; | ||||||
| 4 | (R) On and after July 20, 1999, in the case of an | ||||||
| 5 | attorney-in-fact with respect to whom an interinsurer | ||||||
| 6 | or a reciprocal insurer has made the election under | ||||||
| 7 | Section 835 of the Internal Revenue Code, 26 U.S.C. | ||||||
| 8 | 835, an amount equal to the excess, if any, of the | ||||||
| 9 | amounts paid or incurred by that interinsurer or | ||||||
| 10 | reciprocal insurer in the taxable year to the | ||||||
| 11 | attorney-in-fact over the deduction allowed to that | ||||||
| 12 | interinsurer or reciprocal insurer with respect to the | ||||||
| 13 | attorney-in-fact under Section 835(b) of the Internal | ||||||
| 14 | Revenue Code for the taxable year; the provisions of | ||||||
| 15 | this subparagraph are exempt from the provisions of | ||||||
| 16 | Section 250; | ||||||
| 17 | (S) For taxable years ending on or after December | ||||||
| 18 | 31, 1997, in the case of a Subchapter S corporation, an | ||||||
| 19 | amount equal to all amounts of income allocable to a | ||||||
| 20 | shareholder subject to the Personal Property Tax | ||||||
| 21 | Replacement Income Tax imposed by subsections (c) and | ||||||
| 22 | (d) of Section 201 of this Act, including amounts | ||||||
| 23 | allocable to organizations exempt from federal income | ||||||
| 24 | tax by reason of Section 501(a) of the Internal | ||||||
| 25 | Revenue Code. This subparagraph (S) is exempt from the | ||||||
| 26 | provisions of Section 250; | ||||||
| |||||||
| |||||||
| 1 | (T) For taxable years 2001 and thereafter, for the | ||||||
| 2 | taxable year in which the bonus depreciation deduction | ||||||
| 3 | is taken on the taxpayer's federal income tax return | ||||||
| 4 | under subsection (k) of Section 168 of the Internal | ||||||
| 5 | Revenue Code and for each applicable taxable year | ||||||
| 6 | thereafter, an amount equal to "x", where: | ||||||
| 7 | (1) "y" equals the amount of the depreciation | ||||||
| 8 | deduction taken for the taxable year on the | ||||||
| 9 | taxpayer's federal income tax return on property | ||||||
| 10 | for which the bonus depreciation deduction was | ||||||
| 11 | taken in any year under subsection (k) of Section | ||||||
| 12 | 168 of the Internal Revenue Code, but not | ||||||
| 13 | including the bonus depreciation deduction; | ||||||
| 14 | (2) for taxable years ending on or before | ||||||
| 15 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
| 16 | and then divided by 70 (or "y" multiplied by | ||||||
| 17 | 0.429); and | ||||||
| 18 | (3) for taxable years ending after December | ||||||
| 19 | 31, 2005: | ||||||
| 20 | (i) for property on which a bonus | ||||||
| 21 | depreciation deduction of 30% of the adjusted | ||||||
| 22 | basis was taken, "x" equals "y" multiplied by | ||||||
| 23 | 30 and then divided by 70 (or "y" multiplied | ||||||
| 24 | by 0.429); | ||||||
| 25 | (ii) for property on which a bonus | ||||||
| 26 | depreciation deduction of 50% of the adjusted | ||||||
| |||||||
| |||||||
| 1 | basis was taken, "x" equals "y" multiplied by | ||||||
| 2 | 1.0; | ||||||
| 3 | (iii) for property on which a bonus | ||||||
| 4 | depreciation deduction of 100% of the adjusted | ||||||
| 5 | basis was taken in a taxable year ending on or | ||||||
| 6 | after December 31, 2021, "x" equals the | ||||||
| 7 | depreciation deduction that would be allowed | ||||||
| 8 | on that property if the taxpayer had made the | ||||||
| 9 | election under Section 168(k)(7) of the | ||||||
| 10 | Internal Revenue Code to not claim bonus | ||||||
| 11 | depreciation on that property; and | ||||||
| 12 | (iv) for property on which a bonus | ||||||
| 13 | depreciation deduction of a percentage other | ||||||
| 14 | than 30%, 50% or 100% of the adjusted basis | ||||||
| 15 | was taken in a taxable year ending on or after | ||||||
| 16 | December 31, 2021, "x" equals "y" multiplied | ||||||
| 17 | by 100 times the percentage bonus depreciation | ||||||
| 18 | on the property (that is, 100(bonus%)) and | ||||||
| 19 | then divided by 100 times 1 minus the | ||||||
| 20 | percentage bonus depreciation on the property | ||||||
| 21 | (that is, 100(1-bonus%)). | ||||||
| 22 | The aggregate amount deducted under this | ||||||
| 23 | subparagraph in all taxable years for any one piece of | ||||||
| 24 | property may not exceed the amount of the bonus | ||||||
| 25 | depreciation deduction taken on that property on the | ||||||
| 26 | taxpayer's federal income tax return under subsection | ||||||
| |||||||
| |||||||
| 1 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
| 2 | subparagraph (T) is exempt from the provisions of | ||||||
| 3 | Section 250; | ||||||
| 4 | (U) If the taxpayer sells, transfers, abandons, or | ||||||
| 5 | otherwise disposes of property for which the taxpayer | ||||||
| 6 | was required in any taxable year to make an addition | ||||||
| 7 | modification under subparagraph (E-10), then an amount | ||||||
| 8 | equal to that addition modification. | ||||||
| 9 | If the taxpayer continues to own property through | ||||||
| 10 | the last day of the last tax year for which a | ||||||
| 11 | subtraction is allowed with respect to that property | ||||||
| 12 | under subparagraph (T) and for which the taxpayer was | ||||||
| 13 | required in any taxable year to make an addition | ||||||
| 14 | modification under subparagraph (E-10), then an amount | ||||||
| 15 | equal to that addition modification. | ||||||
| 16 | The taxpayer is allowed to take the deduction | ||||||
| 17 | under this subparagraph only once with respect to any | ||||||
| 18 | one piece of property. | ||||||
| 19 | This subparagraph (U) is exempt from the | ||||||
| 20 | provisions of Section 250; | ||||||
| 21 | (V) The amount of: (i) any interest income (net of | ||||||
| 22 | the deductions allocable thereto) taken into account | ||||||
| 23 | for the taxable year with respect to a transaction | ||||||
| 24 | with a taxpayer that is required to make an addition | ||||||
| 25 | modification with respect to such transaction under | ||||||
| 26 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
| |||||||
| |||||||
| 1 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
| 2 | the amount of such addition modification, (ii) any | ||||||
| 3 | income from intangible property (net of the deductions | ||||||
| 4 | allocable thereto) taken into account for the taxable | ||||||
| 5 | year with respect to a transaction with a taxpayer | ||||||
| 6 | that is required to make an addition modification with | ||||||
| 7 | respect to such transaction under Section | ||||||
| 8 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
| 9 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
| 10 | addition modification, and (iii) any insurance premium | ||||||
| 11 | income (net of deductions allocable thereto) taken | ||||||
| 12 | into account for the taxable year with respect to a | ||||||
| 13 | transaction with a taxpayer that is required to make | ||||||
| 14 | an addition modification with respect to such | ||||||
| 15 | transaction under Section 203(a)(2)(D-19), Section | ||||||
| 16 | 203(b)(2)(E-14), Section 203(c)(2)(G-14), or Section | ||||||
| 17 | 203(d)(2)(D-9), but not to exceed the amount of that | ||||||
| 18 | addition modification. This subparagraph (V) is exempt | ||||||
| 19 | from the provisions of Section 250; | ||||||
| 20 | (W) An amount equal to the interest income taken | ||||||
| 21 | into account for the taxable year (net of the | ||||||
| 22 | deductions allocable thereto) with respect to | ||||||
| 23 | transactions with (i) a foreign person who would be a | ||||||
| 24 | member of the taxpayer's unitary business group but | ||||||
| 25 | for the fact that the foreign person's business | ||||||
| 26 | activity outside the United States is 80% or more of | ||||||
| |||||||
| |||||||
| 1 | that person's total business activity and (ii) for | ||||||
| 2 | taxable years ending on or after December 31, 2008, to | ||||||
| 3 | a person who would be a member of the same unitary | ||||||
| 4 | business group but for the fact that the person is | ||||||
| 5 | prohibited under Section 1501(a)(27) from being | ||||||
| 6 | included in the unitary business group because he or | ||||||
| 7 | she is ordinarily required to apportion business | ||||||
| 8 | income under different subsections of Section 304, but | ||||||
| 9 | not to exceed the addition modification required to be | ||||||
| 10 | made for the same taxable year under Section | ||||||
| 11 | 203(b)(2)(E-12) for interest paid, accrued, or | ||||||
| 12 | incurred, directly or indirectly, to the same person. | ||||||
| 13 | This subparagraph (W) is exempt from the provisions of | ||||||
| 14 | Section 250; | ||||||
| 15 | (X) An amount equal to the income from intangible | ||||||
| 16 | property taken into account for the taxable year (net | ||||||
| 17 | of the deductions allocable thereto) with respect to | ||||||
| 18 | transactions with (i) a foreign person who would be a | ||||||
| 19 | member of the taxpayer's unitary business group but | ||||||
| 20 | for the fact that the foreign person's business | ||||||
| 21 | activity outside the United States is 80% or more of | ||||||
| 22 | that person's total business activity and (ii) for | ||||||
| 23 | taxable years ending on or after December 31, 2008, to | ||||||
| 24 | a person who would be a member of the same unitary | ||||||
| 25 | business group but for the fact that the person is | ||||||
| 26 | prohibited under Section 1501(a)(27) from being | ||||||
| |||||||
| |||||||
| 1 | included in the unitary business group because he or | ||||||
| 2 | she is ordinarily required to apportion business | ||||||
| 3 | income under different subsections of Section 304, but | ||||||
| 4 | not to exceed the addition modification required to be | ||||||
| 5 | made for the same taxable year under Section | ||||||
| 6 | 203(b)(2)(E-13) for intangible expenses and costs | ||||||
| 7 | paid, accrued, or incurred, directly or indirectly, to | ||||||
| 8 | the same foreign person. This subparagraph (X) is | ||||||
| 9 | exempt from the provisions of Section 250; | ||||||
| 10 | (Y) For taxable years ending on or after December | ||||||
| 11 | 31, 2011, in the case of a taxpayer who was required to | ||||||
| 12 | add back any insurance premiums under Section | ||||||
| 13 | 203(b)(2)(E-14), such taxpayer may elect to subtract | ||||||
| 14 | that part of a reimbursement received from the | ||||||
| 15 | insurance company equal to the amount of the expense | ||||||
| 16 | or loss (including expenses incurred by the insurance | ||||||
| 17 | company) that would have been taken into account as a | ||||||
| 18 | deduction for federal income tax purposes if the | ||||||
| 19 | expense or loss had been uninsured. If a taxpayer | ||||||
| 20 | makes the election provided for by this subparagraph | ||||||
| 21 | (Y), the insurer to which the premiums were paid must | ||||||
| 22 | add back to income the amount subtracted by the | ||||||
| 23 | taxpayer pursuant to this subparagraph (Y). This | ||||||
| 24 | subparagraph (Y) is exempt from the provisions of | ||||||
| 25 | Section 250; | ||||||
| 26 | (Z) The difference between the nondeductible | ||||||
| |||||||
| |||||||
| 1 | controlled foreign corporation dividends under Section | ||||||
| 2 | 965(e)(3) of the Internal Revenue Code over the | ||||||
| 3 | taxable income of the taxpayer, computed without | ||||||
| 4 | regard to Section 965(e)(2)(A) of the Internal Revenue | ||||||
| 5 | Code, and without regard to any net operating loss | ||||||
| 6 | deduction. This subparagraph (Z) is exempt from the | ||||||
| 7 | provisions of Section 250; and | ||||||
| 8 | (AA) For taxable years beginning on or after | ||||||
| 9 | January 1, 2023, for any cannabis establishment | ||||||
| 10 | operating in this State and licensed under the | ||||||
| 11 | Cannabis Regulation and Tax Act or any cannabis | ||||||
| 12 | cultivation center or medical cannabis dispensing | ||||||
| 13 | organization operating in this State and licensed | ||||||
| 14 | under the Compassionate Use of Medical Cannabis | ||||||
| 15 | Program Act, an amount equal to the deductions that | ||||||
| 16 | were disallowed under Section 280E of the Internal | ||||||
| 17 | Revenue Code for the taxable year and that would not be | ||||||
| 18 | added back under this subsection. The provisions of | ||||||
| 19 | this subparagraph (AA) are exempt from the provisions | ||||||
| 20 | of Section 250. | ||||||
| 21 | (3) Special rule. For purposes of paragraph (2)(A), | ||||||
| 22 | "gross income" in the case of a life insurance company, | ||||||
| 23 | for tax years ending on and after December 31, 1994, and | ||||||
| 24 | prior to December 31, 2011, shall mean the gross | ||||||
| 25 | investment income for the taxable year and, for tax years | ||||||
| 26 | ending on or after December 31, 2011, shall mean all | ||||||
| |||||||
| |||||||
| 1 | amounts included in life insurance gross income under | ||||||
| 2 | Section 803(a)(3) of the Internal Revenue Code.
| ||||||
| 3 | (c) Trusts and estates. | ||||||
| 4 | (1) In general. In the case of a trust or estate, base | ||||||
| 5 | income means an amount equal to the taxpayer's taxable | ||||||
| 6 | income for the taxable year as modified by paragraph (2). | ||||||
| 7 | (2) Modifications. Subject to the provisions of | ||||||
| 8 | paragraph (3), the taxable income referred to in paragraph | ||||||
| 9 | (1) shall be modified by adding thereto the sum of the | ||||||
| 10 | following amounts: | ||||||
| 11 | (A) An amount equal to all amounts paid or accrued | ||||||
| 12 | to the taxpayer as interest or dividends during the | ||||||
| 13 | taxable year to the extent excluded from gross income | ||||||
| 14 | in the computation of taxable income; | ||||||
| 15 | (B) In the case of (i) an estate, $600; (ii) a | ||||||
| 16 | trust which, under its governing instrument, is | ||||||
| 17 | required to distribute all of its income currently, | ||||||
| 18 | $300; and (iii) any other trust, $100, but in each such | ||||||
| 19 | case, only to the extent such amount was deducted in | ||||||
| 20 | the computation of taxable income; | ||||||
| 21 | (C) An amount equal to the amount of tax imposed by | ||||||
| 22 | this Act to the extent deducted from gross income in | ||||||
| 23 | the computation of taxable income for the taxable | ||||||
| 24 | year; | ||||||
| 25 | (D) The amount of any net operating loss deduction | ||||||
| |||||||
| |||||||
| 1 | taken in arriving at taxable income, other than a net | ||||||
| 2 | operating loss carried forward from a taxable year | ||||||
| 3 | ending prior to December 31, 1986; | ||||||
| 4 | (E) For taxable years in which a net operating | ||||||
| 5 | loss carryback or carryforward from a taxable year | ||||||
| 6 | ending prior to December 31, 1986 is an element of | ||||||
| 7 | taxable income under paragraph (1) of subsection (e) | ||||||
| 8 | or subparagraph (E) of paragraph (2) of subsection | ||||||
| 9 | (e), the amount by which addition modifications other | ||||||
| 10 | than those provided by this subparagraph (E) exceeded | ||||||
| 11 | subtraction modifications in such taxable year, with | ||||||
| 12 | the following limitations applied in the order that | ||||||
| 13 | they are listed: | ||||||
| 14 | (i) the addition modification relating to the | ||||||
| 15 | net operating loss carried back or forward to the | ||||||
| 16 | taxable year from any taxable year ending prior to | ||||||
| 17 | December 31, 1986 shall be reduced by the amount | ||||||
| 18 | of addition modification under this subparagraph | ||||||
| 19 | (E) which related to that net operating loss and | ||||||
| 20 | which was taken into account in calculating the | ||||||
| 21 | base income of an earlier taxable year, and | ||||||
| 22 | (ii) the addition modification relating to the | ||||||
| 23 | net operating loss carried back or forward to the | ||||||
| 24 | taxable year from any taxable year ending prior to | ||||||
| 25 | December 31, 1986 shall not exceed the amount of | ||||||
| 26 | such carryback or carryforward; | ||||||
| |||||||
| |||||||
| 1 | For taxable years in which there is a net | ||||||
| 2 | operating loss carryback or carryforward from more | ||||||
| 3 | than one other taxable year ending prior to December | ||||||
| 4 | 31, 1986, the addition modification provided in this | ||||||
| 5 | subparagraph (E) shall be the sum of the amounts | ||||||
| 6 | computed independently under the preceding provisions | ||||||
| 7 | of this subparagraph (E) for each such taxable year; | ||||||
| 8 | (F) For taxable years ending on or after January | ||||||
| 9 | 1, 1989, an amount equal to the tax deducted pursuant | ||||||
| 10 | to Section 164 of the Internal Revenue Code if the | ||||||
| 11 | trust or estate is claiming the same tax for purposes | ||||||
| 12 | of the Illinois foreign tax credit under Section 601 | ||||||
| 13 | of this Act; | ||||||
| 14 | (G) An amount equal to the amount of the capital | ||||||
| 15 | gain deduction allowable under the Internal Revenue | ||||||
| 16 | Code, to the extent deducted from gross income in the | ||||||
| 17 | computation of taxable income; | ||||||
| 18 | (G-5) For taxable years ending after December 31, | ||||||
| 19 | 1997, an amount equal to any eligible remediation | ||||||
| 20 | costs that the trust or estate deducted in computing | ||||||
| 21 | adjusted gross income and for which the trust or | ||||||
| 22 | estate claims a credit under subsection (l) of Section | ||||||
| 23 | 201; | ||||||
| 24 | (G-10) For taxable years 2001 and thereafter, an | ||||||
| 25 | amount equal to the bonus depreciation deduction taken | ||||||
| 26 | on the taxpayer's federal income tax return for the | ||||||
| |||||||
| |||||||
| 1 | taxable year under subsection (k) of Section 168 of | ||||||
| 2 | the Internal Revenue Code; and | ||||||
| 3 | (G-11) If the taxpayer sells, transfers, abandons, | ||||||
| 4 | or otherwise disposes of property for which the | ||||||
| 5 | taxpayer was required in any taxable year to make an | ||||||
| 6 | addition modification under subparagraph (G-10), then | ||||||
| 7 | an amount equal to the aggregate amount of the | ||||||
| 8 | deductions taken in all taxable years under | ||||||
| 9 | subparagraph (R) with respect to that property. | ||||||
| 10 | If the taxpayer continues to own property through | ||||||
| 11 | the last day of the last tax year for which a | ||||||
| 12 | subtraction is allowed with respect to that property | ||||||
| 13 | under subparagraph (R) and for which the taxpayer was | ||||||
| 14 | allowed in any taxable year to make a subtraction | ||||||
| 15 | modification under subparagraph (R), then an amount | ||||||
| 16 | equal to that subtraction modification. | ||||||
| 17 | The taxpayer is required to make the addition | ||||||
| 18 | modification under this subparagraph only once with | ||||||
| 19 | respect to any one piece of property; | ||||||
| 20 | (G-12) An amount equal to the amount otherwise | ||||||
| 21 | allowed as a deduction in computing base income for | ||||||
| 22 | interest paid, accrued, or incurred, directly or | ||||||
| 23 | indirectly, (i) for taxable years ending on or after | ||||||
| 24 | December 31, 2004, to a foreign person who would be a | ||||||
| 25 | member of the same unitary business group but for the | ||||||
| 26 | fact that the foreign person's business activity | ||||||
| |||||||
| |||||||
| 1 | outside the United States is 80% or more of the foreign | ||||||
| 2 | person's total business activity and (ii) for taxable | ||||||
| 3 | years ending on or after December 31, 2008, to a person | ||||||
| 4 | who would be a member of the same unitary business | ||||||
| 5 | group but for the fact that the person is prohibited | ||||||
| 6 | under Section 1501(a)(27) from being included in the | ||||||
| 7 | unitary business group because he or she is ordinarily | ||||||
| 8 | required to apportion business income under different | ||||||
| 9 | subsections of Section 304. The addition modification | ||||||
| 10 | required by this subparagraph shall be reduced to the | ||||||
| 11 | extent that dividends were included in base income of | ||||||
| 12 | the unitary group for the same taxable year and | ||||||
| 13 | received by the taxpayer or by a member of the | ||||||
| 14 | taxpayer's unitary business group (including amounts | ||||||
| 15 | included in gross income pursuant to Sections 951 | ||||||
| 16 | through 964 of the Internal Revenue Code and amounts | ||||||
| 17 | included in gross income under Section 78 of the | ||||||
| 18 | Internal Revenue Code) with respect to the stock of | ||||||
| 19 | the same person to whom the interest was paid, | ||||||
| 20 | accrued, or incurred. | ||||||
| 21 | This paragraph shall not apply to the following: | ||||||
| 22 | (i) an item of interest paid, accrued, or | ||||||
| 23 | incurred, directly or indirectly, to a person who | ||||||
| 24 | is subject in a foreign country or state, other | ||||||
| 25 | than a state which requires mandatory unitary | ||||||
| 26 | reporting, to a tax on or measured by net income | ||||||
| |||||||
| |||||||
| 1 | with respect to such interest; or | ||||||
| 2 | (ii) an item of interest paid, accrued, or | ||||||
| 3 | incurred, directly or indirectly, to a person if | ||||||
| 4 | the taxpayer can establish, based on a | ||||||
| 5 | preponderance of the evidence, both of the | ||||||
| 6 | following: | ||||||
| 7 | (a) the person, during the same taxable | ||||||
| 8 | year, paid, accrued, or incurred, the interest | ||||||
| 9 | to a person that is not a related member, and | ||||||
| 10 | (b) the transaction giving rise to the | ||||||
| 11 | interest expense between the taxpayer and the | ||||||
| 12 | person did not have as a principal purpose the | ||||||
| 13 | avoidance of Illinois income tax, and is paid | ||||||
| 14 | pursuant to a contract or agreement that | ||||||
| 15 | reflects an arm's-length interest rate and | ||||||
| 16 | terms; or | ||||||
| 17 | (iii) the taxpayer can establish, based on | ||||||
| 18 | clear and convincing evidence, that the interest | ||||||
| 19 | paid, accrued, or incurred relates to a contract | ||||||
| 20 | or agreement entered into at arm's-length rates | ||||||
| 21 | and terms and the principal purpose for the | ||||||
| 22 | payment is not federal or Illinois tax avoidance; | ||||||
| 23 | or | ||||||
| 24 | (iv) an item of interest paid, accrued, or | ||||||
| 25 | incurred, directly or indirectly, to a person if | ||||||
| 26 | the taxpayer establishes by clear and convincing | ||||||
| |||||||
| |||||||
| 1 | evidence that the adjustments are unreasonable; or | ||||||
| 2 | if the taxpayer and the Director agree in writing | ||||||
| 3 | to the application or use of an alternative method | ||||||
| 4 | of apportionment under Section 304(f). | ||||||
| 5 | Nothing in this subsection shall preclude the | ||||||
| 6 | Director from making any other adjustment | ||||||
| 7 | otherwise allowed under Section 404 of this Act | ||||||
| 8 | for any tax year beginning after the effective | ||||||
| 9 | date of this amendment provided such adjustment is | ||||||
| 10 | made pursuant to regulation adopted by the | ||||||
| 11 | Department and such regulations provide methods | ||||||
| 12 | and standards by which the Department will utilize | ||||||
| 13 | its authority under Section 404 of this Act; | ||||||
| 14 | (G-13) An amount equal to the amount of intangible | ||||||
| 15 | expenses and costs otherwise allowed as a deduction in | ||||||
| 16 | computing base income, and that were paid, accrued, or | ||||||
| 17 | incurred, directly or indirectly, (i) for taxable | ||||||
| 18 | years ending on or after December 31, 2004, to a | ||||||
| 19 | foreign person who would be a member of the same | ||||||
| 20 | unitary business group but for the fact that the | ||||||
| 21 | foreign person's business activity outside the United | ||||||
| 22 | States is 80% or more of that person's total business | ||||||
| 23 | activity and (ii) for taxable years ending on or after | ||||||
| 24 | December 31, 2008, to a person who would be a member of | ||||||
| 25 | the same unitary business group but for the fact that | ||||||
| 26 | the person is prohibited under Section 1501(a)(27) | ||||||
| |||||||
| |||||||
| 1 | from being included in the unitary business group | ||||||
| 2 | because he or she is ordinarily required to apportion | ||||||
| 3 | business income under different subsections of Section | ||||||
| 4 | 304. The addition modification required by this | ||||||
| 5 | subparagraph shall be reduced to the extent that | ||||||
| 6 | dividends were included in base income of the unitary | ||||||
| 7 | group for the same taxable year and received by the | ||||||
| 8 | taxpayer or by a member of the taxpayer's unitary | ||||||
| 9 | business group (including amounts included in gross | ||||||
| 10 | income pursuant to Sections 951 through 964 of the | ||||||
| 11 | Internal Revenue Code and amounts included in gross | ||||||
| 12 | income under Section 78 of the Internal Revenue Code) | ||||||
| 13 | with respect to the stock of the same person to whom | ||||||
| 14 | the intangible expenses and costs were directly or | ||||||
| 15 | indirectly paid, incurred, or accrued. The preceding | ||||||
| 16 | sentence shall not apply to the extent that the same | ||||||
| 17 | dividends caused a reduction to the addition | ||||||
| 18 | modification required under Section 203(c)(2)(G-12) of | ||||||
| 19 | this Act. As used in this subparagraph, the term | ||||||
| 20 | "intangible expenses and costs" includes: (1) | ||||||
| 21 | expenses, losses, and costs for or related to the | ||||||
| 22 | direct or indirect acquisition, use, maintenance or | ||||||
| 23 | management, ownership, sale, exchange, or any other | ||||||
| 24 | disposition of intangible property; (2) losses | ||||||
| 25 | incurred, directly or indirectly, from factoring | ||||||
| 26 | transactions or discounting transactions; (3) royalty, | ||||||
| |||||||
| |||||||
| 1 | patent, technical, and copyright fees; (4) licensing | ||||||
| 2 | fees; and (5) other similar expenses and costs. For | ||||||
| 3 | purposes of this subparagraph, "intangible property" | ||||||
| 4 | includes patents, patent applications, trade names, | ||||||
| 5 | trademarks, service marks, copyrights, mask works, | ||||||
| 6 | trade secrets, and similar types of intangible assets. | ||||||
| 7 | This paragraph shall not apply to the following: | ||||||
| 8 | (i) any item of intangible expenses or costs | ||||||
| 9 | paid, accrued, or incurred, directly or | ||||||
| 10 | indirectly, from a transaction with a person who | ||||||
| 11 | is subject in a foreign country or state, other | ||||||
| 12 | than a state which requires mandatory unitary | ||||||
| 13 | reporting, to a tax on or measured by net income | ||||||
| 14 | with respect to such item; or | ||||||
| 15 | (ii) any item of intangible expense or cost | ||||||
| 16 | paid, accrued, or incurred, directly or | ||||||
| 17 | indirectly, if the taxpayer can establish, based | ||||||
| 18 | on a preponderance of the evidence, both of the | ||||||
| 19 | following: | ||||||
| 20 | (a) the person during the same taxable | ||||||
| 21 | year paid, accrued, or incurred, the | ||||||
| 22 | intangible expense or cost to a person that is | ||||||
| 23 | not a related member, and | ||||||
| 24 | (b) the transaction giving rise to the | ||||||
| 25 | intangible expense or cost between the | ||||||
| 26 | taxpayer and the person did not have as a | ||||||
| |||||||
| |||||||
| 1 | principal purpose the avoidance of Illinois | ||||||
| 2 | income tax, and is paid pursuant to a contract | ||||||
| 3 | or agreement that reflects arm's-length terms; | ||||||
| 4 | or | ||||||
| 5 | (iii) any item of intangible expense or cost | ||||||
| 6 | paid, accrued, or incurred, directly or | ||||||
| 7 | indirectly, from a transaction with a person if | ||||||
| 8 | the taxpayer establishes by clear and convincing | ||||||
| 9 | evidence, that the adjustments are unreasonable; | ||||||
| 10 | or if the taxpayer and the Director agree in | ||||||
| 11 | writing to the application or use of an | ||||||
| 12 | alternative method of apportionment under Section | ||||||
| 13 | 304(f); | ||||||
| 14 | Nothing in this subsection shall preclude the | ||||||
| 15 | Director from making any other adjustment | ||||||
| 16 | otherwise allowed under Section 404 of this Act | ||||||
| 17 | for any tax year beginning after the effective | ||||||
| 18 | date of this amendment provided such adjustment is | ||||||
| 19 | made pursuant to regulation adopted by the | ||||||
| 20 | Department and such regulations provide methods | ||||||
| 21 | and standards by which the Department will utilize | ||||||
| 22 | its authority under Section 404 of this Act; | ||||||
| 23 | (G-14) For taxable years ending on or after | ||||||
| 24 | December 31, 2008, an amount equal to the amount of | ||||||
| 25 | insurance premium expenses and costs otherwise allowed | ||||||
| 26 | as a deduction in computing base income, and that were | ||||||
| |||||||
| |||||||
| 1 | paid, accrued, or incurred, directly or indirectly, to | ||||||
| 2 | a person who would be a member of the same unitary | ||||||
| 3 | business group but for the fact that the person is | ||||||
| 4 | prohibited under Section 1501(a)(27) from being | ||||||
| 5 | included in the unitary business group because he or | ||||||
| 6 | she is ordinarily required to apportion business | ||||||
| 7 | income under different subsections of Section 304. The | ||||||
| 8 | addition modification required by this subparagraph | ||||||
| 9 | shall be reduced to the extent that dividends were | ||||||
| 10 | included in base income of the unitary group for the | ||||||
| 11 | same taxable year and received by the taxpayer or by a | ||||||
| 12 | member of the taxpayer's unitary business group | ||||||
| 13 | (including amounts included in gross income under | ||||||
| 14 | Sections 951 through 964 of the Internal Revenue Code | ||||||
| 15 | and amounts included in gross income under Section 78 | ||||||
| 16 | of the Internal Revenue Code) with respect to the | ||||||
| 17 | stock of the same person to whom the premiums and costs | ||||||
| 18 | were directly or indirectly paid, incurred, or | ||||||
| 19 | accrued. The preceding sentence does not apply to the | ||||||
| 20 | extent that the same dividends caused a reduction to | ||||||
| 21 | the addition modification required under Section | ||||||
| 22 | 203(c)(2)(G-12) or Section 203(c)(2)(G-13) of this | ||||||
| 23 | Act; | ||||||
| 24 | (G-15) An amount equal to the credit allowable to | ||||||
| 25 | the taxpayer under Section 218(a) of this Act, | ||||||
| 26 | determined without regard to Section 218(c) of this | ||||||
| |||||||
| |||||||
| 1 | Act; | ||||||
| 2 | (G-16) For taxable years ending on or after | ||||||
| 3 | December 31, 2017, an amount equal to the deduction | ||||||
| 4 | allowed under Section 199 of the Internal Revenue Code | ||||||
| 5 | for the taxable year; | ||||||
| 6 | (G-17) the amount that is claimed as a federal | ||||||
| 7 | deduction when computing the taxpayer's federal | ||||||
| 8 | taxable income for the taxable year and that is | ||||||
| 9 | attributable to an endowment gift for which the | ||||||
| 10 | taxpayer receives a credit under the Illinois Gives | ||||||
| 11 | Tax Credit Act; | ||||||
| 12 | and by deducting from the total so obtained the sum of the | ||||||
| 13 | following amounts: | ||||||
| 14 | (H) An amount equal to all amounts included in | ||||||
| 15 | such total pursuant to the provisions of Sections | ||||||
| 16 | 402(a), 402(c), 403(a), 403(b), 406(a), 407(a) and 408 | ||||||
| 17 | of the Internal Revenue Code or included in such total | ||||||
| 18 | as distributions under the provisions of any | ||||||
| 19 | retirement or disability plan for employees of any | ||||||
| 20 | governmental agency or unit, or retirement payments to | ||||||
| 21 | retired partners, which payments are excluded in | ||||||
| 22 | computing net earnings from self employment by Section | ||||||
| 23 | 1402 of the Internal Revenue Code and regulations | ||||||
| 24 | adopted pursuant thereto; | ||||||
| 25 | (I) The valuation limitation amount; | ||||||
| 26 | (J) An amount equal to the amount of any tax | ||||||
| |||||||
| |||||||
| 1 | imposed by this Act which was refunded to the taxpayer | ||||||
| 2 | and included in such total for the taxable year; | ||||||
| 3 | (K) An amount equal to all amounts included in | ||||||
| 4 | taxable income as modified by subparagraphs (A), (B), | ||||||
| 5 | (C), (D), (E), (F) and (G) which are exempt from | ||||||
| 6 | taxation by this State either by reason of its | ||||||
| 7 | statutes or Constitution or by reason of the | ||||||
| 8 | Constitution, treaties or statutes of the United | ||||||
| 9 | States; provided that, in the case of any statute of | ||||||
| 10 | this State that exempts income derived from bonds or | ||||||
| 11 | other obligations from the tax imposed under this Act, | ||||||
| 12 | the amount exempted shall be the interest net of bond | ||||||
| 13 | premium amortization; | ||||||
| 14 | (L) With the exception of any amounts subtracted | ||||||
| 15 | under subparagraph (K), an amount equal to the sum of | ||||||
| 16 | all amounts disallowed as deductions by (i) Sections | ||||||
| 17 | 171(a)(2) and 265(a)(2) of the Internal Revenue Code, | ||||||
| 18 | and all amounts of expenses allocable to interest and | ||||||
| 19 | disallowed as deductions by Section 265(a)(1) of the | ||||||
| 20 | Internal Revenue Code; and (ii) for taxable years | ||||||
| 21 | ending on or after August 13, 1999, Sections | ||||||
| 22 | 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the | ||||||
| 23 | Internal Revenue Code, plus, (iii) for taxable years | ||||||
| 24 | ending on or after December 31, 2011, Section | ||||||
| 25 | 45G(e)(3) of the Internal Revenue Code and, for | ||||||
| 26 | taxable years ending on or after December 31, 2008, | ||||||
| |||||||
| |||||||
| 1 | any amount included in gross income under Section 87 | ||||||
| 2 | of the Internal Revenue Code; the provisions of this | ||||||
| 3 | subparagraph are exempt from the provisions of Section | ||||||
| 4 | 250; | ||||||
| 5 | (M) An amount equal to those dividends included in | ||||||
| 6 | such total which were paid by a corporation which | ||||||
| 7 | conducts business operations in a River Edge | ||||||
| 8 | Redevelopment Zone or zones created under the River | ||||||
| 9 | Edge Redevelopment Zone Act and conducts substantially | ||||||
| 10 | all of its operations in a River Edge Redevelopment | ||||||
| 11 | Zone or zones. This subparagraph (M) is exempt from | ||||||
| 12 | the provisions of Section 250; | ||||||
| 13 | (N) An amount equal to any contribution made to a | ||||||
| 14 | job training project established pursuant to the Tax | ||||||
| 15 | Increment Allocation Redevelopment Act; | ||||||
| 16 | (O) An amount equal to those dividends included in | ||||||
| 17 | such total that were paid by a corporation that | ||||||
| 18 | conducts business operations in a federally designated | ||||||
| 19 | Foreign Trade Zone or Sub-Zone and that is designated | ||||||
| 20 | a High Impact Business located in Illinois; provided | ||||||
| 21 | that dividends eligible for the deduction provided in | ||||||
| 22 | subparagraph (M) of paragraph (2) of this subsection | ||||||
| 23 | shall not be eligible for the deduction provided under | ||||||
| 24 | this subparagraph (O); | ||||||
| 25 | (P) An amount equal to the amount of the deduction | ||||||
| 26 | used to compute the federal income tax credit for | ||||||
| |||||||
| |||||||
| 1 | restoration of substantial amounts held under claim of | ||||||
| 2 | right for the taxable year pursuant to Section 1341 of | ||||||
| 3 | the Internal Revenue Code; | ||||||
| 4 | (Q) For taxable year 1999 and thereafter, an | ||||||
| 5 | amount equal to the amount of any (i) distributions, | ||||||
| 6 | to the extent includible in gross income for federal | ||||||
| 7 | income tax purposes, made to the taxpayer because of | ||||||
| 8 | his or her status as a victim of persecution for racial | ||||||
| 9 | or religious reasons by Nazi Germany or any other Axis | ||||||
| 10 | regime or as an heir of the victim and (ii) items of | ||||||
| 11 | income, to the extent includible in gross income for | ||||||
| 12 | federal income tax purposes, attributable to, derived | ||||||
| 13 | from or in any way related to assets stolen from, | ||||||
| 14 | hidden from, or otherwise lost to a victim of | ||||||
| 15 | persecution for racial or religious reasons by Nazi | ||||||
| 16 | Germany or any other Axis regime immediately prior to, | ||||||
| 17 | during, and immediately after World War II, including, | ||||||
| 18 | but not limited to, interest on the proceeds | ||||||
| 19 | receivable as insurance under policies issued to a | ||||||
| 20 | victim of persecution for racial or religious reasons | ||||||
| 21 | by Nazi Germany or any other Axis regime by European | ||||||
| 22 | insurance companies immediately prior to and during | ||||||
| 23 | World War II; provided, however, this subtraction from | ||||||
| 24 | federal adjusted gross income does not apply to assets | ||||||
| 25 | acquired with such assets or with the proceeds from | ||||||
| 26 | the sale of such assets; provided, further, this | ||||||
| |||||||
| |||||||
| 1 | paragraph shall only apply to a taxpayer who was the | ||||||
| 2 | first recipient of such assets after their recovery | ||||||
| 3 | and who is a victim of persecution for racial or | ||||||
| 4 | religious reasons by Nazi Germany or any other Axis | ||||||
| 5 | regime or as an heir of the victim. The amount of and | ||||||
| 6 | the eligibility for any public assistance, benefit, or | ||||||
| 7 | similar entitlement is not affected by the inclusion | ||||||
| 8 | of items (i) and (ii) of this paragraph in gross income | ||||||
| 9 | for federal income tax purposes. This paragraph is | ||||||
| 10 | exempt from the provisions of Section 250; | ||||||
| 11 | (R) For taxable years 2001 and thereafter, for the | ||||||
| 12 | taxable year in which the bonus depreciation deduction | ||||||
| 13 | is taken on the taxpayer's federal income tax return | ||||||
| 14 | under subsection (k) of Section 168 of the Internal | ||||||
| 15 | Revenue Code and for each applicable taxable year | ||||||
| 16 | thereafter, an amount equal to "x", where: | ||||||
| 17 | (1) "y" equals the amount of the depreciation | ||||||
| 18 | deduction taken for the taxable year on the | ||||||
| 19 | taxpayer's federal income tax return on property | ||||||
| 20 | for which the bonus depreciation deduction was | ||||||
| 21 | taken in any year under subsection (k) of Section | ||||||
| 22 | 168 of the Internal Revenue Code, but not | ||||||
| 23 | including the bonus depreciation deduction; | ||||||
| 24 | (2) for taxable years ending on or before | ||||||
| 25 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
| 26 | and then divided by 70 (or "y" multiplied by | ||||||
| |||||||
| |||||||
| 1 | 0.429); and | ||||||
| 2 | (3) for taxable years ending after December | ||||||
| 3 | 31, 2005: | ||||||
| 4 | (i) for property on which a bonus | ||||||
| 5 | depreciation deduction of 30% of the adjusted | ||||||
| 6 | basis was taken, "x" equals "y" multiplied by | ||||||
| 7 | 30 and then divided by 70 (or "y" multiplied | ||||||
| 8 | by 0.429); | ||||||
| 9 | (ii) for property on which a bonus | ||||||
| 10 | depreciation deduction of 50% of the adjusted | ||||||
| 11 | basis was taken, "x" equals "y" multiplied by | ||||||
| 12 | 1.0; | ||||||
| 13 | (iii) for property on which a bonus | ||||||
| 14 | depreciation deduction of 100% of the adjusted | ||||||
| 15 | basis was taken in a taxable year ending on or | ||||||
| 16 | after December 31, 2021, "x" equals the | ||||||
| 17 | depreciation deduction that would be allowed | ||||||
| 18 | on that property if the taxpayer had made the | ||||||
| 19 | election under Section 168(k)(7) of the | ||||||
| 20 | Internal Revenue Code to not claim bonus | ||||||
| 21 | depreciation on that property; and | ||||||
| 22 | (iv) for property on which a bonus | ||||||
| 23 | depreciation deduction of a percentage other | ||||||
| 24 | than 30%, 50% or 100% of the adjusted basis | ||||||
| 25 | was taken in a taxable year ending on or after | ||||||
| 26 | December 31, 2021, "x" equals "y" multiplied | ||||||
| |||||||
| |||||||
| 1 | by 100 times the percentage bonus depreciation | ||||||
| 2 | on the property (that is, 100(bonus%)) and | ||||||
| 3 | then divided by 100 times 1 minus the | ||||||
| 4 | percentage bonus depreciation on the property | ||||||
| 5 | (that is, 100(1-bonus%)). | ||||||
| 6 | The aggregate amount deducted under this | ||||||
| 7 | subparagraph in all taxable years for any one piece of | ||||||
| 8 | property may not exceed the amount of the bonus | ||||||
| 9 | depreciation deduction taken on that property on the | ||||||
| 10 | taxpayer's federal income tax return under subsection | ||||||
| 11 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
| 12 | subparagraph (R) is exempt from the provisions of | ||||||
| 13 | Section 250; | ||||||
| 14 | (S) If the taxpayer sells, transfers, abandons, or | ||||||
| 15 | otherwise disposes of property for which the taxpayer | ||||||
| 16 | was required in any taxable year to make an addition | ||||||
| 17 | modification under subparagraph (G-10), then an amount | ||||||
| 18 | equal to that addition modification. | ||||||
| 19 | If the taxpayer continues to own property through | ||||||
| 20 | the last day of the last tax year for which a | ||||||
| 21 | subtraction is allowed with respect to that property | ||||||
| 22 | under subparagraph (R) and for which the taxpayer was | ||||||
| 23 | required in any taxable year to make an addition | ||||||
| 24 | modification under subparagraph (G-10), then an amount | ||||||
| 25 | equal to that addition modification. | ||||||
| 26 | The taxpayer is allowed to take the deduction | ||||||
| |||||||
| |||||||
| 1 | under this subparagraph only once with respect to any | ||||||
| 2 | one piece of property. | ||||||
| 3 | This subparagraph (S) is exempt from the | ||||||
| 4 | provisions of Section 250; | ||||||
| 5 | (T) The amount of (i) any interest income (net of | ||||||
| 6 | the deductions allocable thereto) taken into account | ||||||
| 7 | for the taxable year with respect to a transaction | ||||||
| 8 | with a taxpayer that is required to make an addition | ||||||
| 9 | modification with respect to such transaction under | ||||||
| 10 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
| 11 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
| 12 | the amount of such addition modification and (ii) any | ||||||
| 13 | income from intangible property (net of the deductions | ||||||
| 14 | allocable thereto) taken into account for the taxable | ||||||
| 15 | year with respect to a transaction with a taxpayer | ||||||
| 16 | that is required to make an addition modification with | ||||||
| 17 | respect to such transaction under Section | ||||||
| 18 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
| 19 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
| 20 | addition modification. This subparagraph (T) is exempt | ||||||
| 21 | from the provisions of Section 250; | ||||||
| 22 | (U) An amount equal to the interest income taken | ||||||
| 23 | into account for the taxable year (net of the | ||||||
| 24 | deductions allocable thereto) with respect to | ||||||
| 25 | transactions with (i) a foreign person who would be a | ||||||
| 26 | member of the taxpayer's unitary business group but | ||||||
| |||||||
| |||||||
| 1 | for the fact the foreign person's business activity | ||||||
| 2 | outside the United States is 80% or more of that | ||||||
| 3 | person's total business activity and (ii) for taxable | ||||||
| 4 | years ending on or after December 31, 2008, to a person | ||||||
| 5 | who would be a member of the same unitary business | ||||||
| 6 | group but for the fact that the person is prohibited | ||||||
| 7 | under Section 1501(a)(27) from being included in the | ||||||
| 8 | unitary business group because he or she is ordinarily | ||||||
| 9 | required to apportion business income under different | ||||||
| 10 | subsections of Section 304, but not to exceed the | ||||||
| 11 | addition modification required to be made for the same | ||||||
| 12 | taxable year under Section 203(c)(2)(G-12) for | ||||||
| 13 | interest paid, accrued, or incurred, directly or | ||||||
| 14 | indirectly, to the same person. This subparagraph (U) | ||||||
| 15 | is exempt from the provisions of Section 250; | ||||||
| 16 | (V) An amount equal to the income from intangible | ||||||
| 17 | property taken into account for the taxable year (net | ||||||
| 18 | of the deductions allocable thereto) with respect to | ||||||
| 19 | transactions with (i) a foreign person who would be a | ||||||
| 20 | member of the taxpayer's unitary business group but | ||||||
| 21 | for the fact that the foreign person's business | ||||||
| 22 | activity outside the United States is 80% or more of | ||||||
| 23 | that person's total business activity and (ii) for | ||||||
| 24 | taxable years ending on or after December 31, 2008, to | ||||||
| 25 | a person who would be a member of the same unitary | ||||||
| 26 | business group but for the fact that the person is | ||||||
| |||||||
| |||||||
| 1 | prohibited under Section 1501(a)(27) from being | ||||||
| 2 | included in the unitary business group because he or | ||||||
| 3 | she is ordinarily required to apportion business | ||||||
| 4 | income under different subsections of Section 304, but | ||||||
| 5 | not to exceed the addition modification required to be | ||||||
| 6 | made for the same taxable year under Section | ||||||
| 7 | 203(c)(2)(G-13) for intangible expenses and costs | ||||||
| 8 | paid, accrued, or incurred, directly or indirectly, to | ||||||
| 9 | the same foreign person. This subparagraph (V) is | ||||||
| 10 | exempt from the provisions of Section 250; | ||||||
| 11 | (W) in the case of an estate, an amount equal to | ||||||
| 12 | all amounts included in such total pursuant to the | ||||||
| 13 | provisions of Section 111 of the Internal Revenue Code | ||||||
| 14 | as a recovery of items previously deducted by the | ||||||
| 15 | decedent from adjusted gross income in the computation | ||||||
| 16 | of taxable income. This subparagraph (W) is exempt | ||||||
| 17 | from Section 250; | ||||||
| 18 | (X) an amount equal to the refund included in such | ||||||
| 19 | total of any tax deducted for federal income tax | ||||||
| 20 | purposes, to the extent that deduction was added back | ||||||
| 21 | under subparagraph (F). This subparagraph (X) is | ||||||
| 22 | exempt from the provisions of Section 250; | ||||||
| 23 | (Y) For taxable years ending on or after December | ||||||
| 24 | 31, 2011, in the case of a taxpayer who was required to | ||||||
| 25 | add back any insurance premiums under Section | ||||||
| 26 | 203(c)(2)(G-14), such taxpayer may elect to subtract | ||||||
| |||||||
| |||||||
| 1 | that part of a reimbursement received from the | ||||||
| 2 | insurance company equal to the amount of the expense | ||||||
| 3 | or loss (including expenses incurred by the insurance | ||||||
| 4 | company) that would have been taken into account as a | ||||||
| 5 | deduction for federal income tax purposes if the | ||||||
| 6 | expense or loss had been uninsured. If a taxpayer | ||||||
| 7 | makes the election provided for by this subparagraph | ||||||
| 8 | (Y), the insurer to which the premiums were paid must | ||||||
| 9 | add back to income the amount subtracted by the | ||||||
| 10 | taxpayer pursuant to this subparagraph (Y). This | ||||||
| 11 | subparagraph (Y) is exempt from the provisions of | ||||||
| 12 | Section 250; | ||||||
| 13 | (Z) For taxable years beginning after December 31, | ||||||
| 14 | 2018 and before January 1, 2026, the amount of excess | ||||||
| 15 | business loss of the taxpayer disallowed as a | ||||||
| 16 | deduction by Section 461(l)(1)(B) of the Internal | ||||||
| 17 | Revenue Code; and | ||||||
| 18 | (AA) For taxable years beginning on or after | ||||||
| 19 | January 1, 2023, for any cannabis establishment | ||||||
| 20 | operating in this State and licensed under the | ||||||
| 21 | Cannabis Regulation and Tax Act or any cannabis | ||||||
| 22 | cultivation center or medical cannabis dispensing | ||||||
| 23 | organization operating in this State and licensed | ||||||
| 24 | under the Compassionate Use of Medical Cannabis | ||||||
| 25 | Program Act, an amount equal to the deductions that | ||||||
| 26 | were disallowed under Section 280E of the Internal | ||||||
| |||||||
| |||||||
| 1 | Revenue Code for the taxable year and that would not be | ||||||
| 2 | added back under this subsection. The provisions of | ||||||
| 3 | this subparagraph (AA) are exempt from the provisions | ||||||
| 4 | of Section 250. | ||||||
| 5 | (3) Limitation. The amount of any modification | ||||||
| 6 | otherwise required under this subsection shall, under | ||||||
| 7 | regulations prescribed by the Department, be adjusted by | ||||||
| 8 | any amounts included therein which were properly paid, | ||||||
| 9 | credited, or required to be distributed, or permanently | ||||||
| 10 | set aside for charitable purposes pursuant to Internal | ||||||
| 11 | Revenue Code Section 642(c) during the taxable year.
| ||||||
| 12 | (d) Partnerships. | ||||||
| 13 | (1) In general. In the case of a partnership, base | ||||||
| 14 | income means an amount equal to the taxpayer's taxable | ||||||
| 15 | income for the taxable year as modified by paragraph (2). | ||||||
| 16 | (2) Modifications. The taxable income referred to in | ||||||
| 17 | paragraph (1) shall be modified by adding thereto the sum | ||||||
| 18 | of the following amounts: | ||||||
| 19 | (A) An amount equal to all amounts paid or accrued | ||||||
| 20 | to the taxpayer as interest or dividends during the | ||||||
| 21 | taxable year to the extent excluded from gross income | ||||||
| 22 | in the computation of taxable income; | ||||||
| 23 | (B) An amount equal to the amount of tax imposed by | ||||||
| 24 | this Act to the extent deducted from gross income for | ||||||
| 25 | the taxable year; | ||||||
| |||||||
| |||||||
| 1 | (C) The amount of deductions allowed to the | ||||||
| 2 | partnership pursuant to Section 707 (c) of the | ||||||
| 3 | Internal Revenue Code in calculating its taxable | ||||||
| 4 | income; | ||||||
| 5 | (D) An amount equal to the amount of the capital | ||||||
| 6 | gain deduction allowable under the Internal Revenue | ||||||
| 7 | Code, to the extent deducted from gross income in the | ||||||
| 8 | computation of taxable income; | ||||||
| 9 | (D-5) For taxable years 2001 and thereafter, an | ||||||
| 10 | amount equal to the bonus depreciation deduction taken | ||||||
| 11 | on the taxpayer's federal income tax return for the | ||||||
| 12 | taxable year under subsection (k) of Section 168 of | ||||||
| 13 | the Internal Revenue Code; | ||||||
| 14 | (D-6) If the taxpayer sells, transfers, abandons, | ||||||
| 15 | or otherwise disposes of property for which the | ||||||
| 16 | taxpayer was required in any taxable year to make an | ||||||
| 17 | addition modification under subparagraph (D-5), then | ||||||
| 18 | an amount equal to the aggregate amount of the | ||||||
| 19 | deductions taken in all taxable years under | ||||||
| 20 | subparagraph (O) with respect to that property. | ||||||
| 21 | If the taxpayer continues to own property through | ||||||
| 22 | the last day of the last tax year for which a | ||||||
| 23 | subtraction is allowed with respect to that property | ||||||
| 24 | under subparagraph (O) and for which the taxpayer was | ||||||
| 25 | allowed in any taxable year to make a subtraction | ||||||
| 26 | modification under subparagraph (O), then an amount | ||||||
| |||||||
| |||||||
| 1 | equal to that subtraction modification. | ||||||
| 2 | The taxpayer is required to make the addition | ||||||
| 3 | modification under this subparagraph only once with | ||||||
| 4 | respect to any one piece of property; | ||||||
| 5 | (D-7) An amount equal to the amount otherwise | ||||||
| 6 | allowed as a deduction in computing base income for | ||||||
| 7 | interest paid, accrued, or incurred, directly or | ||||||
| 8 | indirectly, (i) for taxable years ending on or after | ||||||
| 9 | December 31, 2004, to a foreign person who would be a | ||||||
| 10 | member of the same unitary business group but for the | ||||||
| 11 | fact the foreign person's business activity outside | ||||||
| 12 | the United States is 80% or more of the foreign | ||||||
| 13 | person's total business activity and (ii) for taxable | ||||||
| 14 | years ending on or after December 31, 2008, to a person | ||||||
| 15 | who would be a member of the same unitary business | ||||||
| 16 | group but for the fact that the person is prohibited | ||||||
| 17 | under Section 1501(a)(27) from being included in the | ||||||
| 18 | unitary business group because he or she is ordinarily | ||||||
| 19 | required to apportion business income under different | ||||||
| 20 | subsections of Section 304. The addition modification | ||||||
| 21 | required by this subparagraph shall be reduced to the | ||||||
| 22 | extent that dividends were included in base income of | ||||||
| 23 | the unitary group for the same taxable year and | ||||||
| 24 | received by the taxpayer or by a member of the | ||||||
| 25 | taxpayer's unitary business group (including amounts | ||||||
| 26 | included in gross income pursuant to Sections 951 | ||||||
| |||||||
| |||||||
| 1 | through 964 of the Internal Revenue Code and amounts | ||||||
| 2 | included in gross income under Section 78 of the | ||||||
| 3 | Internal Revenue Code) with respect to the stock of | ||||||
| 4 | the same person to whom the interest was paid, | ||||||
| 5 | accrued, or incurred. | ||||||
| 6 | This paragraph shall not apply to the following: | ||||||
| 7 | (i) an item of interest paid, accrued, or | ||||||
| 8 | incurred, directly or indirectly, to a person who | ||||||
| 9 | is subject in a foreign country or state, other | ||||||
| 10 | than a state which requires mandatory unitary | ||||||
| 11 | reporting, to a tax on or measured by net income | ||||||
| 12 | with respect to such interest; or | ||||||
| 13 | (ii) an item of interest paid, accrued, or | ||||||
| 14 | incurred, directly or indirectly, to a person if | ||||||
| 15 | the taxpayer can establish, based on a | ||||||
| 16 | preponderance of the evidence, both of the | ||||||
| 17 | following: | ||||||
| 18 | (a) the person, during the same taxable | ||||||
| 19 | year, paid, accrued, or incurred, the interest | ||||||
| 20 | to a person that is not a related member, and | ||||||
| 21 | (b) the transaction giving rise to the | ||||||
| 22 | interest expense between the taxpayer and the | ||||||
| 23 | person did not have as a principal purpose the | ||||||
| 24 | avoidance of Illinois income tax, and is paid | ||||||
| 25 | pursuant to a contract or agreement that | ||||||
| 26 | reflects an arm's-length interest rate and | ||||||
| |||||||
| |||||||
| 1 | terms; or | ||||||
| 2 | (iii) the taxpayer can establish, based on | ||||||
| 3 | clear and convincing evidence, that the interest | ||||||
| 4 | paid, accrued, or incurred relates to a contract | ||||||
| 5 | or agreement entered into at arm's-length rates | ||||||
| 6 | and terms and the principal purpose for the | ||||||
| 7 | payment is not federal or Illinois tax avoidance; | ||||||
| 8 | or | ||||||
| 9 | (iv) an item of interest paid, accrued, or | ||||||
| 10 | incurred, directly or indirectly, to a person if | ||||||
| 11 | the taxpayer establishes by clear and convincing | ||||||
| 12 | evidence that the adjustments are unreasonable; or | ||||||
| 13 | if the taxpayer and the Director agree in writing | ||||||
| 14 | to the application or use of an alternative method | ||||||
| 15 | of apportionment under Section 304(f). | ||||||
| 16 | Nothing in this subsection shall preclude the | ||||||
| 17 | Director from making any other adjustment | ||||||
| 18 | otherwise allowed under Section 404 of this Act | ||||||
| 19 | for any tax year beginning after the effective | ||||||
| 20 | date of this amendment provided such adjustment is | ||||||
| 21 | made pursuant to regulation adopted by the | ||||||
| 22 | Department and such regulations provide methods | ||||||
| 23 | and standards by which the Department will utilize | ||||||
| 24 | its authority under Section 404 of this Act; and | ||||||
| 25 | (D-8) An amount equal to the amount of intangible | ||||||
| 26 | expenses and costs otherwise allowed as a deduction in | ||||||
| |||||||
| |||||||
| 1 | computing base income, and that were paid, accrued, or | ||||||
| 2 | incurred, directly or indirectly, (i) for taxable | ||||||
| 3 | years ending on or after December 31, 2004, to a | ||||||
| 4 | foreign person who would be a member of the same | ||||||
| 5 | unitary business group but for the fact that the | ||||||
| 6 | foreign person's business activity outside the United | ||||||
| 7 | States is 80% or more of that person's total business | ||||||
| 8 | activity and (ii) for taxable years ending on or after | ||||||
| 9 | December 31, 2008, to a person who would be a member of | ||||||
| 10 | the same unitary business group but for the fact that | ||||||
| 11 | the person is prohibited under Section 1501(a)(27) | ||||||
| 12 | from being included in the unitary business group | ||||||
| 13 | because he or she is ordinarily required to apportion | ||||||
| 14 | business income under different subsections of Section | ||||||
| 15 | 304. The addition modification required by this | ||||||
| 16 | subparagraph shall be reduced to the extent that | ||||||
| 17 | dividends were included in base income of the unitary | ||||||
| 18 | group for the same taxable year and received by the | ||||||
| 19 | taxpayer or by a member of the taxpayer's unitary | ||||||
| 20 | business group (including amounts included in gross | ||||||
| 21 | income pursuant to Sections 951 through 964 of the | ||||||
| 22 | Internal Revenue Code and amounts included in gross | ||||||
| 23 | income under Section 78 of the Internal Revenue Code) | ||||||
| 24 | with respect to the stock of the same person to whom | ||||||
| 25 | the intangible expenses and costs were directly or | ||||||
| 26 | indirectly paid, incurred or accrued. The preceding | ||||||
| |||||||
| |||||||
| 1 | sentence shall not apply to the extent that the same | ||||||
| 2 | dividends caused a reduction to the addition | ||||||
| 3 | modification required under Section 203(d)(2)(D-7) of | ||||||
| 4 | this Act. As used in this subparagraph, the term | ||||||
| 5 | "intangible expenses and costs" includes (1) expenses, | ||||||
| 6 | losses, and costs for, or related to, the direct or | ||||||
| 7 | indirect acquisition, use, maintenance or management, | ||||||
| 8 | ownership, sale, exchange, or any other disposition of | ||||||
| 9 | intangible property; (2) losses incurred, directly or | ||||||
| 10 | indirectly, from factoring transactions or discounting | ||||||
| 11 | transactions; (3) royalty, patent, technical, and | ||||||
| 12 | copyright fees; (4) licensing fees; and (5) other | ||||||
| 13 | similar expenses and costs. For purposes of this | ||||||
| 14 | subparagraph, "intangible property" includes patents, | ||||||
| 15 | patent applications, trade names, trademarks, service | ||||||
| 16 | marks, copyrights, mask works, trade secrets, and | ||||||
| 17 | similar types of intangible assets; | ||||||
| 18 | This paragraph shall not apply to the following: | ||||||
| 19 | (i) any item of intangible expenses or costs | ||||||
| 20 | paid, accrued, or incurred, directly or | ||||||
| 21 | indirectly, from a transaction with a person who | ||||||
| 22 | is subject in a foreign country or state, other | ||||||
| 23 | than a state which requires mandatory unitary | ||||||
| 24 | reporting, to a tax on or measured by net income | ||||||
| 25 | with respect to such item; or | ||||||
| 26 | (ii) any item of intangible expense or cost | ||||||
| |||||||
| |||||||
| 1 | paid, accrued, or incurred, directly or | ||||||
| 2 | indirectly, if the taxpayer can establish, based | ||||||
| 3 | on a preponderance of the evidence, both of the | ||||||
| 4 | following: | ||||||
| 5 | (a) the person during the same taxable | ||||||
| 6 | year paid, accrued, or incurred, the | ||||||
| 7 | intangible expense or cost to a person that is | ||||||
| 8 | not a related member, and | ||||||
| 9 | (b) the transaction giving rise to the | ||||||
| 10 | intangible expense or cost between the | ||||||
| 11 | taxpayer and the person did not have as a | ||||||
| 12 | principal purpose the avoidance of Illinois | ||||||
| 13 | income tax, and is paid pursuant to a contract | ||||||
| 14 | or agreement that reflects arm's-length terms; | ||||||
| 15 | or | ||||||
| 16 | (iii) any item of intangible expense or cost | ||||||
| 17 | paid, accrued, or incurred, directly or | ||||||
| 18 | indirectly, from a transaction with a person if | ||||||
| 19 | the taxpayer establishes by clear and convincing | ||||||
| 20 | evidence, that the adjustments are unreasonable; | ||||||
| 21 | or if the taxpayer and the Director agree in | ||||||
| 22 | writing to the application or use of an | ||||||
| 23 | alternative method of apportionment under Section | ||||||
| 24 | 304(f); | ||||||
| 25 | Nothing in this subsection shall preclude the | ||||||
| 26 | Director from making any other adjustment | ||||||
| |||||||
| |||||||
| 1 | otherwise allowed under Section 404 of this Act | ||||||
| 2 | for any tax year beginning after the effective | ||||||
| 3 | date of this amendment provided such adjustment is | ||||||
| 4 | made pursuant to regulation adopted by the | ||||||
| 5 | Department and such regulations provide methods | ||||||
| 6 | and standards by which the Department will utilize | ||||||
| 7 | its authority under Section 404 of this Act; | ||||||
| 8 | (D-9) For taxable years ending on or after | ||||||
| 9 | December 31, 2008, an amount equal to the amount of | ||||||
| 10 | insurance premium expenses and costs otherwise allowed | ||||||
| 11 | as a deduction in computing base income, and that were | ||||||
| 12 | paid, accrued, or incurred, directly or indirectly, to | ||||||
| 13 | a person who would be a member of the same unitary | ||||||
| 14 | business group but for the fact that the person is | ||||||
| 15 | prohibited under Section 1501(a)(27) from being | ||||||
| 16 | included in the unitary business group because he or | ||||||
| 17 | she is ordinarily required to apportion business | ||||||
| 18 | income under different subsections of Section 304. The | ||||||
| 19 | addition modification required by this subparagraph | ||||||
| 20 | shall be reduced to the extent that dividends were | ||||||
| 21 | included in base income of the unitary group for the | ||||||
| 22 | same taxable year and received by the taxpayer or by a | ||||||
| 23 | member of the taxpayer's unitary business group | ||||||
| 24 | (including amounts included in gross income under | ||||||
| 25 | Sections 951 through 964 of the Internal Revenue Code | ||||||
| 26 | and amounts included in gross income under Section 78 | ||||||
| |||||||
| |||||||
| 1 | of the Internal Revenue Code) with respect to the | ||||||
| 2 | stock of the same person to whom the premiums and costs | ||||||
| 3 | were directly or indirectly paid, incurred, or | ||||||
| 4 | accrued. The preceding sentence does not apply to the | ||||||
| 5 | extent that the same dividends caused a reduction to | ||||||
| 6 | the addition modification required under Section | ||||||
| 7 | 203(d)(2)(D-7) or Section 203(d)(2)(D-8) of this Act; | ||||||
| 8 | (D-10) An amount equal to the credit allowable to | ||||||
| 9 | the taxpayer under Section 218(a) of this Act, | ||||||
| 10 | determined without regard to Section 218(c) of this | ||||||
| 11 | Act; | ||||||
| 12 | (D-11) For taxable years ending on or after | ||||||
| 13 | December 31, 2017, an amount equal to the deduction | ||||||
| 14 | allowed under Section 199 of the Internal Revenue Code | ||||||
| 15 | for the taxable year; | ||||||
| 16 | (D-12) the amount that is claimed as a federal | ||||||
| 17 | deduction when computing the taxpayer's federal | ||||||
| 18 | taxable income for the taxable year and that is | ||||||
| 19 | attributable to an endowment gift for which the | ||||||
| 20 | taxpayer receives a credit under the Illinois Gives | ||||||
| 21 | Tax Credit Act; | ||||||
| 22 | and by deducting from the total so obtained the following | ||||||
| 23 | amounts: | ||||||
| 24 | (E) The valuation limitation amount; | ||||||
| 25 | (F) An amount equal to the amount of any tax | ||||||
| 26 | imposed by this Act which was refunded to the taxpayer | ||||||
| |||||||
| |||||||
| 1 | and included in such total for the taxable year; | ||||||
| 2 | (G) An amount equal to all amounts included in | ||||||
| 3 | taxable income as modified by subparagraphs (A), (B), | ||||||
| 4 | (C) and (D) which are exempt from taxation by this | ||||||
| 5 | State either by reason of its statutes or Constitution | ||||||
| 6 | or by reason of the Constitution, treaties or statutes | ||||||
| 7 | of the United States; provided that, in the case of any | ||||||
| 8 | statute of this State that exempts income derived from | ||||||
| 9 | bonds or other obligations from the tax imposed under | ||||||
| 10 | this Act, the amount exempted shall be the interest | ||||||
| 11 | net of bond premium amortization; | ||||||
| 12 | (H) Any income of the partnership which | ||||||
| 13 | constitutes personal service income as defined in | ||||||
| 14 | Section 1348(b)(1) of the Internal Revenue Code (as in | ||||||
| 15 | effect December 31, 1981) or a reasonable allowance | ||||||
| 16 | for compensation paid or accrued for services rendered | ||||||
| 17 | by partners to the partnership, whichever is greater; | ||||||
| 18 | this subparagraph (H) is exempt from the provisions of | ||||||
| 19 | Section 250; | ||||||
| 20 | (I) An amount equal to all amounts of income | ||||||
| 21 | distributable to an entity subject to the Personal | ||||||
| 22 | Property Tax Replacement Income Tax imposed by | ||||||
| 23 | subsections (c) and (d) of Section 201 of this Act | ||||||
| 24 | including amounts distributable to organizations | ||||||
| 25 | exempt from federal income tax by reason of Section | ||||||
| 26 | 501(a) of the Internal Revenue Code; this subparagraph | ||||||
| |||||||
| |||||||
| 1 | (I) is exempt from the provisions of Section 250; | ||||||
| 2 | (J) With the exception of any amounts subtracted | ||||||
| 3 | under subparagraph (G), an amount equal to the sum of | ||||||
| 4 | all amounts disallowed as deductions by (i) Sections | ||||||
| 5 | 171(a)(2) and 265(a)(2) of the Internal Revenue Code, | ||||||
| 6 | and all amounts of expenses allocable to interest and | ||||||
| 7 | disallowed as deductions by Section 265(a)(1) of the | ||||||
| 8 | Internal Revenue Code; and (ii) for taxable years | ||||||
| 9 | ending on or after August 13, 1999, Sections | ||||||
| 10 | 171(a)(2), 265, 280C, and 832(b)(5)(B)(i) of the | ||||||
| 11 | Internal Revenue Code, plus, (iii) for taxable years | ||||||
| 12 | ending on or after December 31, 2011, Section | ||||||
| 13 | 45G(e)(3) of the Internal Revenue Code and, for | ||||||
| 14 | taxable years ending on or after December 31, 2008, | ||||||
| 15 | any amount included in gross income under Section 87 | ||||||
| 16 | of the Internal Revenue Code; the provisions of this | ||||||
| 17 | subparagraph are exempt from the provisions of Section | ||||||
| 18 | 250; | ||||||
| 19 | (K) An amount equal to those dividends included in | ||||||
| 20 | such total which were paid by a corporation which | ||||||
| 21 | conducts business operations in a River Edge | ||||||
| 22 | Redevelopment Zone or zones created under the River | ||||||
| 23 | Edge Redevelopment Zone Act and conducts substantially | ||||||
| 24 | all of its operations from a River Edge Redevelopment | ||||||
| 25 | Zone or zones. This subparagraph (K) is exempt from | ||||||
| 26 | the provisions of Section 250; | ||||||
| |||||||
| |||||||
| 1 | (L) An amount equal to any contribution made to a | ||||||
| 2 | job training project established pursuant to the Real | ||||||
| 3 | Property Tax Increment Allocation Redevelopment Act; | ||||||
| 4 | (M) An amount equal to those dividends included in | ||||||
| 5 | such total that were paid by a corporation that | ||||||
| 6 | conducts business operations in a federally designated | ||||||
| 7 | Foreign Trade Zone or Sub-Zone and that is designated | ||||||
| 8 | a High Impact Business located in Illinois; provided | ||||||
| 9 | that dividends eligible for the deduction provided in | ||||||
| 10 | subparagraph (K) of paragraph (2) of this subsection | ||||||
| 11 | shall not be eligible for the deduction provided under | ||||||
| 12 | this subparagraph (M); | ||||||
| 13 | (N) An amount equal to the amount of the deduction | ||||||
| 14 | used to compute the federal income tax credit for | ||||||
| 15 | restoration of substantial amounts held under claim of | ||||||
| 16 | right for the taxable year pursuant to Section 1341 of | ||||||
| 17 | the Internal Revenue Code; | ||||||
| 18 | (O) For taxable years 2001 and thereafter, for the | ||||||
| 19 | taxable year in which the bonus depreciation deduction | ||||||
| 20 | is taken on the taxpayer's federal income tax return | ||||||
| 21 | under subsection (k) of Section 168 of the Internal | ||||||
| 22 | Revenue Code and for each applicable taxable year | ||||||
| 23 | thereafter, an amount equal to "x", where: | ||||||
| 24 | (1) "y" equals the amount of the depreciation | ||||||
| 25 | deduction taken for the taxable year on the | ||||||
| 26 | taxpayer's federal income tax return on property | ||||||
| |||||||
| |||||||
| 1 | for which the bonus depreciation deduction was | ||||||
| 2 | taken in any year under subsection (k) of Section | ||||||
| 3 | 168 of the Internal Revenue Code, but not | ||||||
| 4 | including the bonus depreciation deduction; | ||||||
| 5 | (2) for taxable years ending on or before | ||||||
| 6 | December 31, 2005, "x" equals "y" multiplied by 30 | ||||||
| 7 | and then divided by 70 (or "y" multiplied by | ||||||
| 8 | 0.429); and | ||||||
| 9 | (3) for taxable years ending after December | ||||||
| 10 | 31, 2005: | ||||||
| 11 | (i) for property on which a bonus | ||||||
| 12 | depreciation deduction of 30% of the adjusted | ||||||
| 13 | basis was taken, "x" equals "y" multiplied by | ||||||
| 14 | 30 and then divided by 70 (or "y" multiplied | ||||||
| 15 | by 0.429); | ||||||
| 16 | (ii) for property on which a bonus | ||||||
| 17 | depreciation deduction of 50% of the adjusted | ||||||
| 18 | basis was taken, "x" equals "y" multiplied by | ||||||
| 19 | 1.0; | ||||||
| 20 | (iii) for property on which a bonus | ||||||
| 21 | depreciation deduction of 100% of the adjusted | ||||||
| 22 | basis was taken in a taxable year ending on or | ||||||
| 23 | after December 31, 2021, "x" equals the | ||||||
| 24 | depreciation deduction that would be allowed | ||||||
| 25 | on that property if the taxpayer had made the | ||||||
| 26 | election under Section 168(k)(7) of the | ||||||
| |||||||
| |||||||
| 1 | Internal Revenue Code to not claim bonus | ||||||
| 2 | depreciation on that property; and | ||||||
| 3 | (iv) for property on which a bonus | ||||||
| 4 | depreciation deduction of a percentage other | ||||||
| 5 | than 30%, 50% or 100% of the adjusted basis | ||||||
| 6 | was taken in a taxable year ending on or after | ||||||
| 7 | December 31, 2021, "x" equals "y" multiplied | ||||||
| 8 | by 100 times the percentage bonus depreciation | ||||||
| 9 | on the property (that is, 100(bonus%)) and | ||||||
| 10 | then divided by 100 times 1 minus the | ||||||
| 11 | percentage bonus depreciation on the property | ||||||
| 12 | (that is, 100(1-bonus%)). | ||||||
| 13 | The aggregate amount deducted under this | ||||||
| 14 | subparagraph in all taxable years for any one piece of | ||||||
| 15 | property may not exceed the amount of the bonus | ||||||
| 16 | depreciation deduction taken on that property on the | ||||||
| 17 | taxpayer's federal income tax return under subsection | ||||||
| 18 | (k) of Section 168 of the Internal Revenue Code. This | ||||||
| 19 | subparagraph (O) is exempt from the provisions of | ||||||
| 20 | Section 250; | ||||||
| 21 | (P) If the taxpayer sells, transfers, abandons, or | ||||||
| 22 | otherwise disposes of property for which the taxpayer | ||||||
| 23 | was required in any taxable year to make an addition | ||||||
| 24 | modification under subparagraph (D-5), then an amount | ||||||
| 25 | equal to that addition modification. | ||||||
| 26 | If the taxpayer continues to own property through | ||||||
| |||||||
| |||||||
| 1 | the last day of the last tax year for which a | ||||||
| 2 | subtraction is allowed with respect to that property | ||||||
| 3 | under subparagraph (O) and for which the taxpayer was | ||||||
| 4 | required in any taxable year to make an addition | ||||||
| 5 | modification under subparagraph (D-5), then an amount | ||||||
| 6 | equal to that addition modification. | ||||||
| 7 | The taxpayer is allowed to take the deduction | ||||||
| 8 | under this subparagraph only once with respect to any | ||||||
| 9 | one piece of property. | ||||||
| 10 | This subparagraph (P) is exempt from the | ||||||
| 11 | provisions of Section 250; | ||||||
| 12 | (Q) The amount of (i) any interest income (net of | ||||||
| 13 | the deductions allocable thereto) taken into account | ||||||
| 14 | for the taxable year with respect to a transaction | ||||||
| 15 | with a taxpayer that is required to make an addition | ||||||
| 16 | modification with respect to such transaction under | ||||||
| 17 | Section 203(a)(2)(D-17), 203(b)(2)(E-12), | ||||||
| 18 | 203(c)(2)(G-12), or 203(d)(2)(D-7), but not to exceed | ||||||
| 19 | the amount of such addition modification and (ii) any | ||||||
| 20 | income from intangible property (net of the deductions | ||||||
| 21 | allocable thereto) taken into account for the taxable | ||||||
| 22 | year with respect to a transaction with a taxpayer | ||||||
| 23 | that is required to make an addition modification with | ||||||
| 24 | respect to such transaction under Section | ||||||
| 25 | 203(a)(2)(D-18), 203(b)(2)(E-13), 203(c)(2)(G-13), or | ||||||
| 26 | 203(d)(2)(D-8), but not to exceed the amount of such | ||||||
| |||||||
| |||||||
| 1 | addition modification. This subparagraph (Q) is exempt | ||||||
| 2 | from Section 250; | ||||||
| 3 | (R) An amount equal to the interest income taken | ||||||
| 4 | into account for the taxable year (net of the | ||||||
| 5 | deductions allocable thereto) with respect to | ||||||
| 6 | transactions with (i) a foreign person who would be a | ||||||
| 7 | member of the taxpayer's unitary business group but | ||||||
| 8 | for the fact that the foreign person's business | ||||||
| 9 | activity outside the United States is 80% or more of | ||||||
| 10 | that person's total business activity and (ii) for | ||||||
| 11 | taxable years ending on or after December 31, 2008, to | ||||||
| 12 | a person who would be a member of the same unitary | ||||||
| 13 | business group but for the fact that the person is | ||||||
| 14 | prohibited under Section 1501(a)(27) from being | ||||||
| 15 | included in the unitary business group because he or | ||||||
| 16 | she is ordinarily required to apportion business | ||||||
| 17 | income under different subsections of Section 304, but | ||||||
| 18 | not to exceed the addition modification required to be | ||||||
| 19 | made for the same taxable year under Section | ||||||
| 20 | 203(d)(2)(D-7) for interest paid, accrued, or | ||||||
| 21 | incurred, directly or indirectly, to the same person. | ||||||
| 22 | This subparagraph (R) is exempt from Section 250; | ||||||
| 23 | (S) An amount equal to the income from intangible | ||||||
| 24 | property taken into account for the taxable year (net | ||||||
| 25 | of the deductions allocable thereto) with respect to | ||||||
| 26 | transactions with (i) a foreign person who would be a | ||||||
| |||||||
| |||||||
| 1 | member of the taxpayer's unitary business group but | ||||||
| 2 | for the fact that the foreign person's business | ||||||
| 3 | activity outside the United States is 80% or more of | ||||||
| 4 | that person's total business activity and (ii) for | ||||||
| 5 | taxable years ending on or after December 31, 2008, to | ||||||
| 6 | a person who would be a member of the same unitary | ||||||
| 7 | business group but for the fact that the person is | ||||||
| 8 | prohibited under Section 1501(a)(27) from being | ||||||
| 9 | included in the unitary business group because he or | ||||||
| 10 | she is ordinarily required to apportion business | ||||||
| 11 | income under different subsections of Section 304, but | ||||||
| 12 | not to exceed the addition modification required to be | ||||||
| 13 | made for the same taxable year under Section | ||||||
| 14 | 203(d)(2)(D-8) for intangible expenses and costs paid, | ||||||
| 15 | accrued, or incurred, directly or indirectly, to the | ||||||
| 16 | same person. This subparagraph (S) is exempt from | ||||||
| 17 | Section 250; | ||||||
| 18 | (T) For taxable years ending on or after December | ||||||
| 19 | 31, 2011, in the case of a taxpayer who was required to | ||||||
| 20 | add back any insurance premiums under Section | ||||||
| 21 | 203(d)(2)(D-9), such taxpayer may elect to subtract | ||||||
| 22 | that part of a reimbursement received from the | ||||||
| 23 | insurance company equal to the amount of the expense | ||||||
| 24 | or loss (including expenses incurred by the insurance | ||||||
| 25 | company) that would have been taken into account as a | ||||||
| 26 | deduction for federal income tax purposes if the | ||||||
| |||||||
| |||||||
| 1 | expense or loss had been uninsured. If a taxpayer | ||||||
| 2 | makes the election provided for by this subparagraph | ||||||
| 3 | (T), the insurer to which the premiums were paid must | ||||||
| 4 | add back to income the amount subtracted by the | ||||||
| 5 | taxpayer pursuant to this subparagraph (T). This | ||||||
| 6 | subparagraph (T) is exempt from the provisions of | ||||||
| 7 | Section 250; and | ||||||
| 8 | (U) For taxable years beginning on or after | ||||||
| 9 | January 1, 2023, for any cannabis establishment | ||||||
| 10 | operating in this State and licensed under the | ||||||
| 11 | Cannabis Regulation and Tax Act or any cannabis | ||||||
| 12 | cultivation center or medical cannabis dispensing | ||||||
| 13 | organization operating in this State and licensed | ||||||
| 14 | under the Compassionate Use of Medical Cannabis | ||||||
| 15 | Program Act, an amount equal to the deductions that | ||||||
| 16 | were disallowed under Section 280E of the Internal | ||||||
| 17 | Revenue Code for the taxable year and that would not be | ||||||
| 18 | added back under this subsection. The provisions of | ||||||
| 19 | this subparagraph (U) are exempt from the provisions | ||||||
| 20 | of Section 250.
| ||||||
| 21 | (e) Gross income; adjusted gross income; taxable income. | ||||||
| 22 | (1) In general. Subject to the provisions of paragraph | ||||||
| 23 | (2) and subsection (b)(3), for purposes of this Section | ||||||
| 24 | and Section 803(e), a taxpayer's gross income, adjusted | ||||||
| 25 | gross income, or taxable income for the taxable year shall | ||||||
| |||||||
| |||||||
| 1 | mean the amount of gross income, adjusted gross income or | ||||||
| 2 | taxable income properly reportable for federal income tax | ||||||
| 3 | purposes for the taxable year under the provisions of the | ||||||
| 4 | Internal Revenue Code. Taxable income may be less than | ||||||
| 5 | zero. However, for taxable years ending on or after | ||||||
| 6 | December 31, 1986, net operating loss carryforwards from | ||||||
| 7 | taxable years ending prior to December 31, 1986, may not | ||||||
| 8 | exceed the sum of federal taxable income for the taxable | ||||||
| 9 | year before net operating loss deduction, plus the excess | ||||||
| 10 | of addition modifications over subtraction modifications | ||||||
| 11 | for the taxable year. For taxable years ending prior to | ||||||
| 12 | December 31, 1986, taxable income may never be an amount | ||||||
| 13 | in excess of the net operating loss for the taxable year as | ||||||
| 14 | defined in subsections (c) and (d) of Section 172 of the | ||||||
| 15 | Internal Revenue Code, provided that when taxable income | ||||||
| 16 | of a corporation (other than a Subchapter S corporation), | ||||||
| 17 | trust, or estate is less than zero and addition | ||||||
| 18 | modifications, other than those provided by subparagraph | ||||||
| 19 | (E) of paragraph (2) of subsection (b) for corporations or | ||||||
| 20 | subparagraph (E) of paragraph (2) of subsection (c) for | ||||||
| 21 | trusts and estates, exceed subtraction modifications, an | ||||||
| 22 | addition modification must be made under those | ||||||
| 23 | subparagraphs for any other taxable year to which the | ||||||
| 24 | taxable income less than zero (net operating loss) is | ||||||
| 25 | applied under Section 172 of the Internal Revenue Code or | ||||||
| 26 | under subparagraph (E) of paragraph (2) of this subsection | ||||||
| |||||||
| |||||||
| 1 | (e) applied in conjunction with Section 172 of the | ||||||
| 2 | Internal Revenue Code. | ||||||
| 3 | (2) Special rule. For purposes of paragraph (1) of | ||||||
| 4 | this subsection, the taxable income properly reportable | ||||||
| 5 | for federal income tax purposes shall mean: | ||||||
| 6 | (A) Certain life insurance companies. In the case | ||||||
| 7 | of a life insurance company subject to the tax imposed | ||||||
| 8 | by Section 801 of the Internal Revenue Code, life | ||||||
| 9 | insurance company taxable income, plus the amount of | ||||||
| 10 | distribution from pre-1984 policyholder surplus | ||||||
| 11 | accounts as calculated under Section 815a of the | ||||||
| 12 | Internal Revenue Code; | ||||||
| 13 | (B) Certain other insurance companies. In the case | ||||||
| 14 | of mutual insurance companies subject to the tax | ||||||
| 15 | imposed by Section 831 of the Internal Revenue Code, | ||||||
| 16 | insurance company taxable income; | ||||||
| 17 | (C) Regulated investment companies. In the case of | ||||||
| 18 | a regulated investment company subject to the tax | ||||||
| 19 | imposed by Section 852 of the Internal Revenue Code, | ||||||
| 20 | investment company taxable income; | ||||||
| 21 | (D) Real estate investment trusts. In the case of | ||||||
| 22 | a real estate investment trust subject to the tax | ||||||
| 23 | imposed by Section 857 of the Internal Revenue Code, | ||||||
| 24 | real estate investment trust taxable income; | ||||||
| 25 | (E) Consolidated corporations. In the case of a | ||||||
| 26 | corporation which is a member of an affiliated group | ||||||
| |||||||
| |||||||
| 1 | of corporations filing a consolidated income tax | ||||||
| 2 | return for the taxable year for federal income tax | ||||||
| 3 | purposes, taxable income determined as if such | ||||||
| 4 | corporation had filed a separate return for federal | ||||||
| 5 | income tax purposes for the taxable year and each | ||||||
| 6 | preceding taxable year for which it was a member of an | ||||||
| 7 | affiliated group. For purposes of this subparagraph, | ||||||
| 8 | the taxpayer's separate taxable income shall be | ||||||
| 9 | determined as if the election provided by Section | ||||||
| 10 | 243(b)(2) of the Internal Revenue Code had been in | ||||||
| 11 | effect for all such years; | ||||||
| 12 | (F) Cooperatives. In the case of a cooperative | ||||||
| 13 | corporation or association, the taxable income of such | ||||||
| 14 | organization determined in accordance with the | ||||||
| 15 | provisions of Section 1381 through 1388 of the | ||||||
| 16 | Internal Revenue Code, but without regard to the | ||||||
| 17 | prohibition against offsetting losses from patronage | ||||||
| 18 | activities against income from nonpatronage | ||||||
| 19 | activities; except that a cooperative corporation or | ||||||
| 20 | association may make an election to follow its federal | ||||||
| 21 | income tax treatment of patronage losses and | ||||||
| 22 | nonpatronage losses. In the event such election is | ||||||
| 23 | made, such losses shall be computed and carried over | ||||||
| 24 | in a manner consistent with subsection (a) of Section | ||||||
| 25 | 207 of this Act and apportioned by the apportionment | ||||||
| 26 | factor reported by the cooperative on its Illinois | ||||||
| |||||||
| |||||||
| 1 | income tax return filed for the taxable year in which | ||||||
| 2 | the losses are incurred. The election shall be | ||||||
| 3 | effective for all taxable years with original returns | ||||||
| 4 | due on or after the date of the election. In addition, | ||||||
| 5 | the cooperative may file an amended return or returns, | ||||||
| 6 | as allowed under this Act, to provide that the | ||||||
| 7 | election shall be effective for losses incurred or | ||||||
| 8 | carried forward for taxable years occurring prior to | ||||||
| 9 | the date of the election. Once made, the election may | ||||||
| 10 | only be revoked upon approval of the Director. The | ||||||
| 11 | Department shall adopt rules setting forth | ||||||
| 12 | requirements for documenting the elections and any | ||||||
| 13 | resulting Illinois net loss and the standards to be | ||||||
| 14 | used by the Director in evaluating requests to revoke | ||||||
| 15 | elections. Public Act 96-932 is declaratory of | ||||||
| 16 | existing law; | ||||||
| 17 | (G) Subchapter S corporations. In the case of: (i) | ||||||
| 18 | a Subchapter S corporation for which there is in | ||||||
| 19 | effect an election for the taxable year under Section | ||||||
| 20 | 1362 of the Internal Revenue Code, the taxable income | ||||||
| 21 | of such corporation determined in accordance with | ||||||
| 22 | Section 1363(b) of the Internal Revenue Code, except | ||||||
| 23 | that taxable income shall take into account those | ||||||
| 24 | items which are required by Section 1363(b)(1) of the | ||||||
| 25 | Internal Revenue Code to be separately stated; and | ||||||
| 26 | (ii) a Subchapter S corporation for which there is in | ||||||
| |||||||
| |||||||
| 1 | effect a federal election to opt out of the provisions | ||||||
| 2 | of the Subchapter S Revision Act of 1982 and have | ||||||
| 3 | applied instead the prior federal Subchapter S rules | ||||||
| 4 | as in effect on July 1, 1982, the taxable income of | ||||||
| 5 | such corporation determined in accordance with the | ||||||
| 6 | federal Subchapter S rules as in effect on July 1, | ||||||
| 7 | 1982; and | ||||||
| 8 | (H) Partnerships. In the case of a partnership, | ||||||
| 9 | taxable income determined in accordance with Section | ||||||
| 10 | 703 of the Internal Revenue Code, except that taxable | ||||||
| 11 | income shall take into account those items which are | ||||||
| 12 | required by Section 703(a)(1) to be separately stated | ||||||
| 13 | but which would be taken into account by an individual | ||||||
| 14 | in calculating his taxable income. | ||||||
| 15 | (3) Recapture of business expenses on disposition of | ||||||
| 16 | asset or business. Notwithstanding any other law to the | ||||||
| 17 | contrary, if in prior years income from an asset or | ||||||
| 18 | business has been classified as business income and in a | ||||||
| 19 | later year is demonstrated to be non-business income, then | ||||||
| 20 | all expenses, without limitation, deducted in such later | ||||||
| 21 | year and in the 2 immediately preceding taxable years | ||||||
| 22 | related to that asset or business that generated the | ||||||
| 23 | non-business income shall be added back and recaptured as | ||||||
| 24 | business income in the year of the disposition of the | ||||||
| 25 | asset or business. Such amount shall be apportioned to | ||||||
| 26 | Illinois using the greater of the apportionment fraction | ||||||
| |||||||
| |||||||
| 1 | computed for the business under Section 304 of this Act | ||||||
| 2 | for the taxable year or the average of the apportionment | ||||||
| 3 | fractions computed for the business under Section 304 of | ||||||
| 4 | this Act for the taxable year and for the 2 immediately | ||||||
| 5 | preceding taxable years.
| ||||||
| 6 | (f) Valuation limitation amount. | ||||||
| 7 | (1) In general. The valuation limitation amount | ||||||
| 8 | referred to in subsections (a)(2)(G), (c)(2)(I) and | ||||||
| 9 | (d)(2)(E) is an amount equal to: | ||||||
| 10 | (A) The sum of the pre-August 1, 1969 appreciation | ||||||
| 11 | amounts (to the extent consisting of gain reportable | ||||||
| 12 | under the provisions of Section 1245 or 1250 of the | ||||||
| 13 | Internal Revenue Code) for all property in respect of | ||||||
| 14 | which such gain was reported for the taxable year; | ||||||
| 15 | plus | ||||||
| 16 | (B) The lesser of (i) the sum of the pre-August 1, | ||||||
| 17 | 1969 appreciation amounts (to the extent consisting of | ||||||
| 18 | capital gain) for all property in respect of which | ||||||
| 19 | such gain was reported for federal income tax purposes | ||||||
| 20 | for the taxable year, or (ii) the net capital gain for | ||||||
| 21 | the taxable year, reduced in either case by any amount | ||||||
| 22 | of such gain included in the amount determined under | ||||||
| 23 | subsection (a)(2)(F) or (c)(2)(H). | ||||||
| 24 | (2) Pre-August 1, 1969 appreciation amount. | ||||||
| 25 | (A) If the fair market value of property referred | ||||||
| |||||||
| |||||||
| 1 | to in paragraph (1) was readily ascertainable on | ||||||
| 2 | August 1, 1969, the pre-August 1, 1969 appreciation | ||||||
| 3 | amount for such property is the lesser of (i) the | ||||||
| 4 | excess of such fair market value over the taxpayer's | ||||||
| 5 | basis (for determining gain) for such property on that | ||||||
| 6 | date (determined under the Internal Revenue Code as in | ||||||
| 7 | effect on that date), or (ii) the total gain realized | ||||||
| 8 | and reportable for federal income tax purposes in | ||||||
| 9 | respect of the sale, exchange or other disposition of | ||||||
| 10 | such property. | ||||||
| 11 | (B) If the fair market value of property referred | ||||||
| 12 | to in paragraph (1) was not readily ascertainable on | ||||||
| 13 | August 1, 1969, the pre-August 1, 1969 appreciation | ||||||
| 14 | amount for such property is that amount which bears | ||||||
| 15 | the same ratio to the total gain reported in respect of | ||||||
| 16 | the property for federal income tax purposes for the | ||||||
| 17 | taxable year, as the number of full calendar months in | ||||||
| 18 | that part of the taxpayer's holding period for the | ||||||
| 19 | property ending July 31, 1969 bears to the number of | ||||||
| 20 | full calendar months in the taxpayer's entire holding | ||||||
| 21 | period for the property. | ||||||
| 22 | (C) The Department shall prescribe such | ||||||
| 23 | regulations as may be necessary to carry out the | ||||||
| 24 | purposes of this paragraph.
| ||||||
| 25 | (g) Double deductions. Unless specifically provided | ||||||
| |||||||
| |||||||
| 1 | otherwise, nothing in this Section shall permit the same item | ||||||
| 2 | to be deducted more than once.
| ||||||
| 3 | (h) Legislative intention. Except as expressly provided by | ||||||
| 4 | this Section there shall be no modifications or limitations on | ||||||
| 5 | the amounts of income, gain, loss or deduction taken into | ||||||
| 6 | account in determining gross income, adjusted gross income or | ||||||
| 7 | taxable income for federal income tax purposes for the taxable | ||||||
| 8 | year, or in the amount of such items entering into the | ||||||
| 9 | computation of base income and net income under this Act for | ||||||
| 10 | such taxable year, whether in respect of property values as of | ||||||
| 11 | August 1, 1969 or otherwise. | ||||||
| 12 | (Source: P.A. 102-16, eff. 6-17-21; 102-558, eff. 8-20-21; | ||||||
| 13 | 102-658, eff. 8-27-21; 102-813, eff. 5-13-22; 102-1112, eff. | ||||||
| 14 | 12-21-22; 103-8, eff. 6-7-23; 103-478, eff. 1-1-24; revised | ||||||
| 15 | 9-26-23.)
| ||||||
| 16 | (35 ILCS 5/241 new) | ||||||
| 17 | Sec. 241. The Illinois Gives tax credit. | ||||||
| 18 | (a) For taxable years ending on or after December 31, 2025 | ||||||
| 19 | and ending before January 1, 2030, each taxpayer for whom a tax | ||||||
| 20 | credit has been authorized by the Department of Revenue under | ||||||
| 21 | the Illinois Gives Tax Credit Act is entitled to a credit | ||||||
| 22 | against the tax imposed under subsections (a) and (b) of | ||||||
| 23 | Section 201 in an amount equal to the amount authorized under | ||||||
| 24 | that Act. | ||||||
| |||||||
| |||||||
| 1 | (b) For partners of partnerships and shareholders of | ||||||
| 2 | Subchapter S corporations, there is allowed a credit under | ||||||
| 3 | this Section to be determined in accordance with Section 251 | ||||||
| 4 | of this Act. | ||||||
| 5 | (c) The credit may not be carried back and may not reduce | ||||||
| 6 | the taxpayer's liability to less than zero. If the amount of | ||||||
| 7 | the credit exceeds the tax liability for the year, the excess | ||||||
| 8 | may be carried forward and applied to the tax liability of the | ||||||
| 9 | 5 taxable years following the excess credit year. The tax | ||||||
| 10 | credit shall be applied to the earliest year for which there is | ||||||
| 11 | a tax liability. If there are credits for more than one year | ||||||
| 12 | that are available to offset a liability, the earlier credit | ||||||
| 13 | shall be applied first.
| ||||||
| 14 | ARTICLE 175. | ||||||
| 15 | Section 175-5. The Property Tax Code is amended by | ||||||
| 16 | changing Section 18-185 as follows:
| ||||||
| 17 | (35 ILCS 200/18-185) | ||||||
| 18 | Sec. 18-185. Short title; definitions. This Division 5 | ||||||
| 19 | may be cited as the Property Tax Extension Limitation Law. As | ||||||
| 20 | used in this Division 5: | ||||||
| 21 | "Consumer Price Index" means the Consumer Price Index for | ||||||
| 22 | All Urban Consumers for all items published by the United | ||||||
| 23 | States Department of Labor. | ||||||
| |||||||
| |||||||
| 1 | "Extension limitation" means (a) the lesser of 5% or the | ||||||
| 2 | percentage increase in the Consumer Price Index during the | ||||||
| 3 | 12-month calendar year preceding the levy year or (b) the rate | ||||||
| 4 | of increase approved by voters under Section 18-205. | ||||||
| 5 | "Affected county" means a county of 3,000,000 or more | ||||||
| 6 | inhabitants or a county contiguous to a county of 3,000,000 or | ||||||
| 7 | more inhabitants. | ||||||
| 8 | "Taxing district" has the same meaning provided in Section | ||||||
| 9 | 1-150, except as otherwise provided in this Section. For the | ||||||
| 10 | 1991 through 1994 levy years only, "taxing district" includes | ||||||
| 11 | only each non-home rule taxing district having the majority of | ||||||
| 12 | its 1990 equalized assessed value within any county or | ||||||
| 13 | counties contiguous to a county with 3,000,000 or more | ||||||
| 14 | inhabitants. Beginning with the 1995 levy year, "taxing | ||||||
| 15 | district" includes only each non-home rule taxing district | ||||||
| 16 | subject to this Law before the 1995 levy year and each non-home | ||||||
| 17 | rule taxing district not subject to this Law before the 1995 | ||||||
| 18 | levy year having the majority of its 1994 equalized assessed | ||||||
| 19 | value in an affected county or counties. Beginning with the | ||||||
| 20 | levy year in which this Law becomes applicable to a taxing | ||||||
| 21 | district as provided in Section 18-213, "taxing district" also | ||||||
| 22 | includes those taxing districts made subject to this Law as | ||||||
| 23 | provided in Section 18-213. | ||||||
| 24 | "Aggregate extension" for taxing districts to which this | ||||||
| 25 | Law applied before the 1995 levy year means the annual | ||||||
| 26 | corporate extension for the taxing district and those special | ||||||
| |||||||
| |||||||
| 1 | purpose extensions that are made annually for the taxing | ||||||
| 2 | district, excluding special purpose extensions: (a) made for | ||||||
| 3 | the taxing district to pay interest or principal on general | ||||||
| 4 | obligation bonds that were approved by referendum; (b) made | ||||||
| 5 | for any taxing district to pay interest or principal on | ||||||
| 6 | general obligation bonds issued before October 1, 1991; (c) | ||||||
| 7 | made for any taxing district to pay interest or principal on | ||||||
| 8 | bonds issued to refund or continue to refund those bonds | ||||||
| 9 | issued before October 1, 1991; (d) made for any taxing | ||||||
| 10 | district to pay interest or principal on bonds issued to | ||||||
| 11 | refund or continue to refund bonds issued after October 1, | ||||||
| 12 | 1991 that were approved by referendum; (e) made for any taxing | ||||||
| 13 | district to pay interest or principal on revenue bonds issued | ||||||
| 14 | before October 1, 1991 for payment of which a property tax levy | ||||||
| 15 | or the full faith and credit of the unit of local government is | ||||||
| 16 | pledged; however, a tax for the payment of interest or | ||||||
| 17 | principal on those bonds shall be made only after the | ||||||
| 18 | governing body of the unit of local government finds that all | ||||||
| 19 | other sources for payment are insufficient to make those | ||||||
| 20 | payments; (f) made for payments under a building commission | ||||||
| 21 | lease when the lease payments are for the retirement of bonds | ||||||
| 22 | issued by the commission before October 1, 1991, to pay for the | ||||||
| 23 | building project; (g) made for payments due under installment | ||||||
| 24 | contracts entered into before October 1, 1991; (h) made for | ||||||
| 25 | payments of principal and interest on bonds issued under the | ||||||
| 26 | Metropolitan Water Reclamation District Act to finance | ||||||
| |||||||
| |||||||
| 1 | construction projects initiated before October 1, 1991; (i) | ||||||
| 2 | made for payments of principal and interest on limited bonds, | ||||||
| 3 | as defined in Section 3 of the Local Government Debt Reform | ||||||
| 4 | Act, in an amount not to exceed the debt service extension base | ||||||
| 5 | less the amount in items (b), (c), (e), and (h) of this | ||||||
| 6 | definition for non-referendum obligations, except obligations | ||||||
| 7 | initially issued pursuant to referendum; (j) made for payments | ||||||
| 8 | of principal and interest on bonds issued under Section 15 of | ||||||
| 9 | the Local Government Debt Reform Act; (k) made by a school | ||||||
| 10 | district that participates in the Special Education District | ||||||
| 11 | of Lake County, created by special education joint agreement | ||||||
| 12 | under Section 10-22.31 of the School Code, for payment of the | ||||||
| 13 | school district's share of the amounts required to be | ||||||
| 14 | contributed by the Special Education District of Lake County | ||||||
| 15 | to the Illinois Municipal Retirement Fund under Article 7 of | ||||||
| 16 | the Illinois Pension Code; the amount of any extension under | ||||||
| 17 | this item (k) shall be certified by the school district to the | ||||||
| 18 | county clerk; (l) made to fund expenses of providing joint | ||||||
| 19 | recreational programs for persons with disabilities under | ||||||
| 20 | Section 5-8 of the Park District Code or Section 11-95-14 of | ||||||
| 21 | the Illinois Municipal Code; (m) made for temporary relocation | ||||||
| 22 | loan repayment purposes pursuant to Sections 2-3.77 and | ||||||
| 23 | 17-2.2d of the School Code; (n) made for payment of principal | ||||||
| 24 | and interest on any bonds issued under the authority of | ||||||
| 25 | Section 17-2.2d of the School Code; (o) made for contributions | ||||||
| 26 | to a firefighter's pension fund created under Article 4 of the | ||||||
| |||||||
| |||||||
| 1 | Illinois Pension Code, to the extent of the amount certified | ||||||
| 2 | under item (5) of Section 4-134 of the Illinois Pension Code; | ||||||
| 3 | and (p) made for road purposes in the first year after a | ||||||
| 4 | township assumes the rights, powers, duties, assets, property, | ||||||
| 5 | liabilities, obligations, and responsibilities of a road | ||||||
| 6 | district abolished under the provisions of Section 6-133 of | ||||||
| 7 | the Illinois Highway Code; and (q) made under Section 4 of the | ||||||
| 8 | Community Mental Health Act to provide the necessary funds or | ||||||
| 9 | to supplement existing funds for community mental health | ||||||
| 10 | facilities and services, including facilities and services for | ||||||
| 11 | the person with a developmental disability or a substance use | ||||||
| 12 | disorder. | ||||||
| 13 | "Aggregate extension" for the taxing districts to which | ||||||
| 14 | this Law did not apply before the 1995 levy year (except taxing | ||||||
| 15 | districts subject to this Law in accordance with Section | ||||||
| 16 | 18-213) means the annual corporate extension for the taxing | ||||||
| 17 | district and those special purpose extensions that are made | ||||||
| 18 | annually for the taxing district, excluding special purpose | ||||||
| 19 | extensions: (a) made for the taxing district to pay interest | ||||||
| 20 | or principal on general obligation bonds that were approved by | ||||||
| 21 | referendum; (b) made for any taxing district to pay interest | ||||||
| 22 | or principal on general obligation bonds issued before March | ||||||
| 23 | 1, 1995; (c) made for any taxing district to pay interest or | ||||||
| 24 | principal on bonds issued to refund or continue to refund | ||||||
| 25 | those bonds issued before March 1, 1995; (d) made for any | ||||||
| 26 | taxing district to pay interest or principal on bonds issued | ||||||
| |||||||
| |||||||
| 1 | to refund or continue to refund bonds issued after March 1, | ||||||
| 2 | 1995 that were approved by referendum; (e) made for any taxing | ||||||
| 3 | district to pay interest or principal on revenue bonds issued | ||||||
| 4 | before March 1, 1995 for payment of which a property tax levy | ||||||
| 5 | or the full faith and credit of the unit of local government is | ||||||
| 6 | pledged; however, a tax for the payment of interest or | ||||||
| 7 | principal on those bonds shall be made only after the | ||||||
| 8 | governing body of the unit of local government finds that all | ||||||
| 9 | other sources for payment are insufficient to make those | ||||||
| 10 | payments; (f) made for payments under a building commission | ||||||
| 11 | lease when the lease payments are for the retirement of bonds | ||||||
| 12 | issued by the commission before March 1, 1995 to pay for the | ||||||
| 13 | building project; (g) made for payments due under installment | ||||||
| 14 | contracts entered into before March 1, 1995; (h) made for | ||||||
| 15 | payments of principal and interest on bonds issued under the | ||||||
| 16 | Metropolitan Water Reclamation District Act to finance | ||||||
| 17 | construction projects initiated before October 1, 1991; (h-4) | ||||||
| 18 | made for stormwater management purposes by the Metropolitan | ||||||
| 19 | Water Reclamation District of Greater Chicago under Section 12 | ||||||
| 20 | of the Metropolitan Water Reclamation District Act; (h-8) made | ||||||
| 21 | for payments of principal and interest on bonds issued under | ||||||
| 22 | Section 9.6a of the Metropolitan Water Reclamation District | ||||||
| 23 | Act to make contributions to the pension fund established | ||||||
| 24 | under Article 13 of the Illinois Pension Code; (i) made for | ||||||
| 25 | payments of principal and interest on limited bonds, as | ||||||
| 26 | defined in Section 3 of the Local Government Debt Reform Act, | ||||||
| |||||||
| |||||||
| 1 | in an amount not to exceed the debt service extension base less | ||||||
| 2 | the amount in items (b), (c), and (e) of this definition for | ||||||
| 3 | non-referendum obligations, except obligations initially | ||||||
| 4 | issued pursuant to referendum and bonds described in | ||||||
| 5 | subsections (h) and (h-8) of this definition; (j) made for | ||||||
| 6 | payments of principal and interest on bonds issued under | ||||||
| 7 | Section 15 of the Local Government Debt Reform Act; (k) made | ||||||
| 8 | for payments of principal and interest on bonds authorized by | ||||||
| 9 | Public Act 88-503 and issued under Section 20a of the Chicago | ||||||
| 10 | Park District Act for aquarium or museum projects and bonds | ||||||
| 11 | issued under Section 20a of the Chicago Park District Act for | ||||||
| 12 | the purpose of making contributions to the pension fund | ||||||
| 13 | established under Article 12 of the Illinois Pension Code; (l) | ||||||
| 14 | made for payments of principal and interest on bonds | ||||||
| 15 | authorized by Public Act 87-1191 or 93-601 and (i) issued | ||||||
| 16 | pursuant to Section 21.2 of the Cook County Forest Preserve | ||||||
| 17 | District Act, (ii) issued under Section 42 of the Cook County | ||||||
| 18 | Forest Preserve District Act for zoological park projects, or | ||||||
| 19 | (iii) issued under Section 44.1 of the Cook County Forest | ||||||
| 20 | Preserve District Act for botanical gardens projects; (m) made | ||||||
| 21 | pursuant to Section 34-53.5 of the School Code, whether levied | ||||||
| 22 | annually or not; (n) made to fund expenses of providing joint | ||||||
| 23 | recreational programs for persons with disabilities under | ||||||
| 24 | Section 5-8 of the Park District Code or Section 11-95-14 of | ||||||
| 25 | the Illinois Municipal Code; (o) made by the Chicago Park | ||||||
| 26 | District for recreational programs for persons with | ||||||
| |||||||
| |||||||
| 1 | disabilities under subsection (c) of Section 7.06 of the | ||||||
| 2 | Chicago Park District Act; (p) made for contributions to a | ||||||
| 3 | firefighter's pension fund created under Article 4 of the | ||||||
| 4 | Illinois Pension Code, to the extent of the amount certified | ||||||
| 5 | under item (5) of Section 4-134 of the Illinois Pension Code; | ||||||
| 6 | (q) made by Ford Heights School District 169 under Section | ||||||
| 7 | 17-9.02 of the School Code; and (r) made for the purpose of | ||||||
| 8 | making employer contributions to the Public School Teachers' | ||||||
| 9 | Pension and Retirement Fund of Chicago under Section 34-53 of | ||||||
| 10 | the School Code; and (s) made under Section 4 of the Community | ||||||
| 11 | Mental Health Act to provide the necessary funds or to | ||||||
| 12 | supplement existing funds for community mental health | ||||||
| 13 | facilities and services, including facilities and services for | ||||||
| 14 | the person with a developmental disability or a substance use | ||||||
| 15 | disorder. | ||||||
| 16 | "Aggregate extension" for all taxing districts to which | ||||||
| 17 | this Law applies in accordance with Section 18-213, except for | ||||||
| 18 | those taxing districts subject to paragraph (2) of subsection | ||||||
| 19 | (e) of Section 18-213, means the annual corporate extension | ||||||
| 20 | for the taxing district and those special purpose extensions | ||||||
| 21 | that are made annually for the taxing district, excluding | ||||||
| 22 | special purpose extensions: (a) made for the taxing district | ||||||
| 23 | to pay interest or principal on general obligation bonds that | ||||||
| 24 | were approved by referendum; (b) made for any taxing district | ||||||
| 25 | to pay interest or principal on general obligation bonds | ||||||
| 26 | issued before the date on which the referendum making this Law | ||||||
| |||||||
| |||||||
| 1 | applicable to the taxing district is held; (c) made for any | ||||||
| 2 | taxing district to pay interest or principal on bonds issued | ||||||
| 3 | to refund or continue to refund those bonds issued before the | ||||||
| 4 | date on which the referendum making this Law applicable to the | ||||||
| 5 | taxing district is held; (d) made for any taxing district to | ||||||
| 6 | pay interest or principal on bonds issued to refund or | ||||||
| 7 | continue to refund bonds issued after the date on which the | ||||||
| 8 | referendum making this Law applicable to the taxing district | ||||||
| 9 | is held if the bonds were approved by referendum after the date | ||||||
| 10 | on which the referendum making this Law applicable to the | ||||||
| 11 | taxing district is held; (e) made for any taxing district to | ||||||
| 12 | pay interest or principal on revenue bonds issued before the | ||||||
| 13 | date on which the referendum making this Law applicable to the | ||||||
| 14 | taxing district is held for payment of which a property tax | ||||||
| 15 | levy or the full faith and credit of the unit of local | ||||||
| 16 | government is pledged; however, a tax for the payment of | ||||||
| 17 | interest or principal on those bonds shall be made only after | ||||||
| 18 | the governing body of the unit of local government finds that | ||||||
| 19 | all other sources for payment are insufficient to make those | ||||||
| 20 | payments; (f) made for payments under a building commission | ||||||
| 21 | lease when the lease payments are for the retirement of bonds | ||||||
| 22 | issued by the commission before the date on which the | ||||||
| 23 | referendum making this Law applicable to the taxing district | ||||||
| 24 | is held to pay for the building project; (g) made for payments | ||||||
| 25 | due under installment contracts entered into before the date | ||||||
| 26 | on which the referendum making this Law applicable to the | ||||||
| |||||||
| |||||||
| 1 | taxing district is held; (h) made for payments of principal | ||||||
| 2 | and interest on limited bonds, as defined in Section 3 of the | ||||||
| 3 | Local Government Debt Reform Act, in an amount not to exceed | ||||||
| 4 | the debt service extension base less the amount in items (b), | ||||||
| 5 | (c), and (e) of this definition for non-referendum | ||||||
| 6 | obligations, except obligations initially issued pursuant to | ||||||
| 7 | referendum; (i) made for payments of principal and interest on | ||||||
| 8 | bonds issued under Section 15 of the Local Government Debt | ||||||
| 9 | Reform Act; (j) made for a qualified airport authority to pay | ||||||
| 10 | interest or principal on general obligation bonds issued for | ||||||
| 11 | the purpose of paying obligations due under, or financing | ||||||
| 12 | airport facilities required to be acquired, constructed, | ||||||
| 13 | installed or equipped pursuant to, contracts entered into | ||||||
| 14 | before March 1, 1996 (but not including any amendments to such | ||||||
| 15 | a contract taking effect on or after that date); (k) made to | ||||||
| 16 | fund expenses of providing joint recreational programs for | ||||||
| 17 | persons with disabilities under Section 5-8 of the Park | ||||||
| 18 | District Code or Section 11-95-14 of the Illinois Municipal | ||||||
| 19 | Code; (l) made for contributions to a firefighter's pension | ||||||
| 20 | fund created under Article 4 of the Illinois Pension Code, to | ||||||
| 21 | the extent of the amount certified under item (5) of Section | ||||||
| 22 | 4-134 of the Illinois Pension Code; and (m) made for the taxing | ||||||
| 23 | district to pay interest or principal on general obligation | ||||||
| 24 | bonds issued pursuant to Section 19-3.10 of the School Code; | ||||||
| 25 | and (n) made under Section 4 of the Community Mental Health Act | ||||||
| 26 | to provide the necessary funds or to supplement existing funds | ||||||
| |||||||
| |||||||
| 1 | for community mental health facilities and services, including | ||||||
| 2 | facilities and services for the person with a developmental | ||||||
| 3 | disability or a substance use disorder. | ||||||
| 4 | "Aggregate extension" for all taxing districts to which | ||||||
| 5 | this Law applies in accordance with paragraph (2) of | ||||||
| 6 | subsection (e) of Section 18-213 means the annual corporate | ||||||
| 7 | extension for the taxing district and those special purpose | ||||||
| 8 | extensions that are made annually for the taxing district, | ||||||
| 9 | excluding special purpose extensions: (a) made for the taxing | ||||||
| 10 | district to pay interest or principal on general obligation | ||||||
| 11 | bonds that were approved by referendum; (b) made for any | ||||||
| 12 | taxing district to pay interest or principal on general | ||||||
| 13 | obligation bonds issued before March 7, 1997 (the effective | ||||||
| 14 | date of Public Act 89-718); (c) made for any taxing district to | ||||||
| 15 | pay interest or principal on bonds issued to refund or | ||||||
| 16 | continue to refund those bonds issued before March 7, 1997 | ||||||
| 17 | (the effective date of Public Act 89-718); (d) made for any | ||||||
| 18 | taxing district to pay interest or principal on bonds issued | ||||||
| 19 | to refund or continue to refund bonds issued after March 7, | ||||||
| 20 | 1997 (the effective date of Public Act 89-718) if the bonds | ||||||
| 21 | were approved by referendum after March 7, 1997 (the effective | ||||||
| 22 | date of Public Act 89-718); (e) made for any taxing district to | ||||||
| 23 | pay interest or principal on revenue bonds issued before March | ||||||
| 24 | 7, 1997 (the effective date of Public Act 89-718) for payment | ||||||
| 25 | of which a property tax levy or the full faith and credit of | ||||||
| 26 | the unit of local government is pledged; however, a tax for the | ||||||
| |||||||
| |||||||
| 1 | payment of interest or principal on those bonds shall be made | ||||||
| 2 | only after the governing body of the unit of local government | ||||||
| 3 | finds that all other sources for payment are insufficient to | ||||||
| 4 | make those payments; (f) made for payments under a building | ||||||
| 5 | commission lease when the lease payments are for the | ||||||
| 6 | retirement of bonds issued by the commission before March 7, | ||||||
| 7 | 1997 (the effective date of Public Act 89-718) to pay for the | ||||||
| 8 | building project; (g) made for payments due under installment | ||||||
| 9 | contracts entered into before March 7, 1997 (the effective | ||||||
| 10 | date of Public Act 89-718); (h) made for payments of principal | ||||||
| 11 | and interest on limited bonds, as defined in Section 3 of the | ||||||
| 12 | Local Government Debt Reform Act, in an amount not to exceed | ||||||
| 13 | the debt service extension base less the amount in items (b), | ||||||
| 14 | (c), and (e) of this definition for non-referendum | ||||||
| 15 | obligations, except obligations initially issued pursuant to | ||||||
| 16 | referendum; (i) made for payments of principal and interest on | ||||||
| 17 | bonds issued under Section 15 of the Local Government Debt | ||||||
| 18 | Reform Act; (j) made for a qualified airport authority to pay | ||||||
| 19 | interest or principal on general obligation bonds issued for | ||||||
| 20 | the purpose of paying obligations due under, or financing | ||||||
| 21 | airport facilities required to be acquired, constructed, | ||||||
| 22 | installed or equipped pursuant to, contracts entered into | ||||||
| 23 | before March 1, 1996 (but not including any amendments to such | ||||||
| 24 | a contract taking effect on or after that date); (k) made to | ||||||
| 25 | fund expenses of providing joint recreational programs for | ||||||
| 26 | persons with disabilities under Section 5-8 of the Park | ||||||
| |||||||
| |||||||
| 1 | District Code or Section 11-95-14 of the Illinois Municipal | ||||||
| 2 | Code; and (l) made for contributions to a firefighter's | ||||||
| 3 | pension fund created under Article 4 of the Illinois Pension | ||||||
| 4 | Code, to the extent of the amount certified under item (5) of | ||||||
| 5 | Section 4-134 of the Illinois Pension Code; and (m) made under | ||||||
| 6 | Section 4 of the Community Mental Health Act to provide the | ||||||
| 7 | necessary funds or to supplement existing funds for community | ||||||
| 8 | mental health facilities and services, including facilities | ||||||
| 9 | and services for the person with a developmental disability or | ||||||
| 10 | a substance use disorder. | ||||||
| 11 | "Debt service extension base" means an amount equal to | ||||||
| 12 | that portion of the extension for a taxing district for the | ||||||
| 13 | 1994 levy year, or for those taxing districts subject to this | ||||||
| 14 | Law in accordance with Section 18-213, except for those | ||||||
| 15 | subject to paragraph (2) of subsection (e) of Section 18-213, | ||||||
| 16 | for the levy year in which the referendum making this Law | ||||||
| 17 | applicable to the taxing district is held, or for those taxing | ||||||
| 18 | districts subject to this Law in accordance with paragraph (2) | ||||||
| 19 | of subsection (e) of Section 18-213 for the 1996 levy year, | ||||||
| 20 | constituting an extension for payment of principal and | ||||||
| 21 | interest on bonds issued by the taxing district without | ||||||
| 22 | referendum, but not including excluded non-referendum bonds. | ||||||
| 23 | For park districts (i) that were first subject to this Law in | ||||||
| 24 | 1991 or 1995 and (ii) whose extension for the 1994 levy year | ||||||
| 25 | for the payment of principal and interest on bonds issued by | ||||||
| 26 | the park district without referendum (but not including | ||||||
| |||||||
| |||||||
| 1 | excluded non-referendum bonds) was less than 51% of the amount | ||||||
| 2 | for the 1991 levy year constituting an extension for payment | ||||||
| 3 | of principal and interest on bonds issued by the park district | ||||||
| 4 | without referendum (but not including excluded non-referendum | ||||||
| 5 | bonds), "debt service extension base" means an amount equal to | ||||||
| 6 | that portion of the extension for the 1991 levy year | ||||||
| 7 | constituting an extension for payment of principal and | ||||||
| 8 | interest on bonds issued by the park district without | ||||||
| 9 | referendum (but not including excluded non-referendum bonds). | ||||||
| 10 | A debt service extension base established or increased at any | ||||||
| 11 | time pursuant to any provision of this Law, except Section | ||||||
| 12 | 18-212, shall be increased each year commencing with the later | ||||||
| 13 | of (i) the 2009 levy year or (ii) the first levy year in which | ||||||
| 14 | this Law becomes applicable to the taxing district, by the | ||||||
| 15 | lesser of 5% or the percentage increase in the Consumer Price | ||||||
| 16 | Index during the 12-month calendar year preceding the levy | ||||||
| 17 | year. The debt service extension base may be established or | ||||||
| 18 | increased as provided under Section 18-212. "Excluded | ||||||
| 19 | non-referendum bonds" means (i) bonds authorized by Public Act | ||||||
| 20 | 88-503 and issued under Section 20a of the Chicago Park | ||||||
| 21 | District Act for aquarium and museum projects; (ii) bonds | ||||||
| 22 | issued under Section 15 of the Local Government Debt Reform | ||||||
| 23 | Act; or (iii) refunding obligations issued to refund or to | ||||||
| 24 | continue to refund obligations initially issued pursuant to | ||||||
| 25 | referendum. | ||||||
| 26 | "Special purpose extensions" include, but are not limited | ||||||
| |||||||
| |||||||
| 1 | to, extensions for levies made on an annual basis for | ||||||
| 2 | unemployment and workers' compensation, self-insurance, | ||||||
| 3 | contributions to pension plans, and extensions made pursuant | ||||||
| 4 | to Section 6-601 of the Illinois Highway Code for a road | ||||||
| 5 | district's permanent road fund whether levied annually or not. | ||||||
| 6 | The extension for a special service area is not included in the | ||||||
| 7 | aggregate extension. | ||||||
| 8 | "Aggregate extension base" means the taxing district's | ||||||
| 9 | last preceding aggregate extension as adjusted under Sections | ||||||
| 10 | 18-135, 18-215, 18-230, 18-206, and 18-233. Beginning with | ||||||
| 11 | levy year 2022, for taxing districts that are specified in | ||||||
| 12 | Section 18-190.7, the taxing district's aggregate extension | ||||||
| 13 | base shall be calculated as provided in Section 18-190.7. An | ||||||
| 14 | adjustment under Section 18-135 shall be made for the 2007 | ||||||
| 15 | levy year and all subsequent levy years whenever one or more | ||||||
| 16 | counties within which a taxing district is located (i) used | ||||||
| 17 | estimated valuations or rates when extending taxes in the | ||||||
| 18 | taxing district for the last preceding levy year that resulted | ||||||
| 19 | in the over or under extension of taxes, or (ii) increased or | ||||||
| 20 | decreased the tax extension for the last preceding levy year | ||||||
| 21 | as required by Section 18-135(c). Whenever an adjustment is | ||||||
| 22 | required under Section 18-135, the aggregate extension base of | ||||||
| 23 | the taxing district shall be equal to the amount that the | ||||||
| 24 | aggregate extension of the taxing district would have been for | ||||||
| 25 | the last preceding levy year if either or both (i) actual, | ||||||
| 26 | rather than estimated, valuations or rates had been used to | ||||||
| |||||||
| |||||||
| 1 | calculate the extension of taxes for the last levy year, or | ||||||
| 2 | (ii) the tax extension for the last preceding levy year had not | ||||||
| 3 | been adjusted as required by subsection (c) of Section 18-135. | ||||||
| 4 | Notwithstanding any other provision of law, for levy year | ||||||
| 5 | 2012, the aggregate extension base for West Northfield School | ||||||
| 6 | District No. 31 in Cook County shall be $12,654,592. | ||||||
| 7 | Notwithstanding any other provision of law, for levy year | ||||||
| 8 | 2022, the aggregate extension base of a home equity assurance | ||||||
| 9 | program that levied at least $1,000,000 in property taxes in | ||||||
| 10 | levy year 2019 or 2020 under the Home Equity Assurance Act | ||||||
| 11 | shall be the amount that the program's aggregate extension | ||||||
| 12 | base for levy year 2021 would have been if the program had | ||||||
| 13 | levied a property tax for levy year 2021. | ||||||
| 14 | "Levy year" has the same meaning as "year" under Section | ||||||
| 15 | 1-155. | ||||||
| 16 | "New property" means (i) the assessed value, after final | ||||||
| 17 | board of review or board of appeals action, of new | ||||||
| 18 | improvements or additions to existing improvements on any | ||||||
| 19 | parcel of real property that increase the assessed value of | ||||||
| 20 | that real property during the levy year multiplied by the | ||||||
| 21 | equalization factor issued by the Department under Section | ||||||
| 22 | 17-30, (ii) the assessed value, after final board of review or | ||||||
| 23 | board of appeals action, of real property not exempt from real | ||||||
| 24 | estate taxation, which real property was exempt from real | ||||||
| 25 | estate taxation for any portion of the immediately preceding | ||||||
| 26 | levy year, multiplied by the equalization factor issued by the | ||||||
| |||||||
| |||||||
| 1 | Department under Section 17-30, including the assessed value, | ||||||
| 2 | upon final stabilization of occupancy after new construction | ||||||
| 3 | is complete, of any real property located within the | ||||||
| 4 | boundaries of an otherwise or previously exempt military | ||||||
| 5 | reservation that is intended for residential use and owned by | ||||||
| 6 | or leased to a private corporation or other entity, (iii) in | ||||||
| 7 | counties that classify in accordance with Section 4 of Article | ||||||
| 8 | IX of the Illinois Constitution, an incentive property's | ||||||
| 9 | additional assessed value resulting from a scheduled increase | ||||||
| 10 | in the level of assessment as applied to the first year final | ||||||
| 11 | board of review market value, and (iv) any increase in | ||||||
| 12 | assessed value due to oil or gas production from an oil or gas | ||||||
| 13 | well required to be permitted under the Hydraulic Fracturing | ||||||
| 14 | Regulatory Act that was not produced in or accounted for | ||||||
| 15 | during the previous levy year. In addition, the county clerk | ||||||
| 16 | in a county containing a population of 3,000,000 or more shall | ||||||
| 17 | include in the 1997 recovered tax increment value for any | ||||||
| 18 | school district, any recovered tax increment value that was | ||||||
| 19 | applicable to the 1995 tax year calculations. | ||||||
| 20 | "Qualified airport authority" means an airport authority | ||||||
| 21 | organized under the Airport Authorities Act and located in a | ||||||
| 22 | county bordering on the State of Wisconsin and having a | ||||||
| 23 | population in excess of 200,000 and not greater than 500,000. | ||||||
| 24 | "Recovered tax increment value" means, except as otherwise | ||||||
| 25 | provided in this paragraph, the amount of the current year's | ||||||
| 26 | equalized assessed value, in the first year after a | ||||||
| |||||||
| |||||||
| 1 | municipality terminates the designation of an area as a | ||||||
| 2 | redevelopment project area previously established under the | ||||||
| 3 | Tax Increment Allocation Redevelopment Act in the Illinois | ||||||
| 4 | Municipal Code, previously established under the Industrial | ||||||
| 5 | Jobs Recovery Law in the Illinois Municipal Code, previously | ||||||
| 6 | established under the Economic Development Project Area Tax | ||||||
| 7 | Increment Act of 1995, or previously established under the | ||||||
| 8 | Economic Development Area Tax Increment Allocation Act, of | ||||||
| 9 | each taxable lot, block, tract, or parcel of real property in | ||||||
| 10 | the redevelopment project area over and above the initial | ||||||
| 11 | equalized assessed value of each property in the redevelopment | ||||||
| 12 | project area. For the taxes which are extended for the 1997 | ||||||
| 13 | levy year, the recovered tax increment value for a non-home | ||||||
| 14 | rule taxing district that first became subject to this Law for | ||||||
| 15 | the 1995 levy year because a majority of its 1994 equalized | ||||||
| 16 | assessed value was in an affected county or counties shall be | ||||||
| 17 | increased if a municipality terminated the designation of an | ||||||
| 18 | area in 1993 as a redevelopment project area previously | ||||||
| 19 | established under the Tax Increment Allocation Redevelopment | ||||||
| 20 | Act in the Illinois Municipal Code, previously established | ||||||
| 21 | under the Industrial Jobs Recovery Law in the Illinois | ||||||
| 22 | Municipal Code, or previously established under the Economic | ||||||
| 23 | Development Area Tax Increment Allocation Act, by an amount | ||||||
| 24 | equal to the 1994 equalized assessed value of each taxable | ||||||
| 25 | lot, block, tract, or parcel of real property in the | ||||||
| 26 | redevelopment project area over and above the initial | ||||||
| |||||||
| |||||||
| 1 | equalized assessed value of each property in the redevelopment | ||||||
| 2 | project area. In the first year after a municipality removes a | ||||||
| 3 | taxable lot, block, tract, or parcel of real property from a | ||||||
| 4 | redevelopment project area established under the Tax Increment | ||||||
| 5 | Allocation Redevelopment Act in the Illinois Municipal Code, | ||||||
| 6 | the Industrial Jobs Recovery Law in the Illinois Municipal | ||||||
| 7 | Code, or the Economic Development Area Tax Increment | ||||||
| 8 | Allocation Act, "recovered tax increment value" means the | ||||||
| 9 | amount of the current year's equalized assessed value of each | ||||||
| 10 | taxable lot, block, tract, or parcel of real property removed | ||||||
| 11 | from the redevelopment project area over and above the initial | ||||||
| 12 | equalized assessed value of that real property before removal | ||||||
| 13 | from the redevelopment project area. | ||||||
| 14 | Except as otherwise provided in this Section, "limiting | ||||||
| 15 | rate" means a fraction the numerator of which is the last | ||||||
| 16 | preceding aggregate extension base times an amount equal to | ||||||
| 17 | one plus the extension limitation defined in this Section and | ||||||
| 18 | the denominator of which is the current year's equalized | ||||||
| 19 | assessed value of all real property in the territory under the | ||||||
| 20 | jurisdiction of the taxing district during the prior levy | ||||||
| 21 | year. For those taxing districts that reduced their aggregate | ||||||
| 22 | extension for the last preceding levy year, except for school | ||||||
| 23 | districts that reduced their extension for educational | ||||||
| 24 | purposes pursuant to Section 18-206, the highest aggregate | ||||||
| 25 | extension in any of the last 3 preceding levy years shall be | ||||||
| 26 | used for the purpose of computing the limiting rate. The | ||||||
| |||||||
| |||||||
| 1 | denominator shall not include new property or the recovered | ||||||
| 2 | tax increment value. If a new rate, a rate decrease, or a | ||||||
| 3 | limiting rate increase has been approved at an election held | ||||||
| 4 | after March 21, 2006, then (i) the otherwise applicable | ||||||
| 5 | limiting rate shall be increased by the amount of the new rate | ||||||
| 6 | or shall be reduced by the amount of the rate decrease, as the | ||||||
| 7 | case may be, or (ii) in the case of a limiting rate increase, | ||||||
| 8 | the limiting rate shall be equal to the rate set forth in the | ||||||
| 9 | proposition approved by the voters for each of the years | ||||||
| 10 | specified in the proposition, after which the limiting rate of | ||||||
| 11 | the taxing district shall be calculated as otherwise provided. | ||||||
| 12 | In the case of a taxing district that obtained referendum | ||||||
| 13 | approval for an increased limiting rate on March 20, 2012, the | ||||||
| 14 | limiting rate for tax year 2012 shall be the rate that | ||||||
| 15 | generates the approximate total amount of taxes extendable for | ||||||
| 16 | that tax year, as set forth in the proposition approved by the | ||||||
| 17 | voters; this rate shall be the final rate applied by the county | ||||||
| 18 | clerk for the aggregate of all capped funds of the district for | ||||||
| 19 | tax year 2012. | ||||||
| 20 | (Source: P.A. 102-263, eff. 8-6-21; 102-311, eff. 8-6-21; | ||||||
| 21 | 102-519, eff. 8-20-21; 102-558, eff. 8-20-21; 102-707, eff. | ||||||
| 22 | 4-22-22; 102-813, eff. 5-13-22; 102-895, eff. 5-23-22; | ||||||
| 23 | 103-154, eff. 6-30-23.)
| ||||||
| 24 | Section 175-10. The Community Mental Health Act is amended | ||||||
| 25 | by changing Sections 3a, 3b, 3e, 3f, 4, 5, 6, and 7 as follows:
| ||||||
| |||||||
| |||||||
| 1 | (405 ILCS 20/3a) (from Ch. 91 1/2, par. 303a) | ||||||
| 2 | Sec. 3a. Every governmental unit authorized to levy an | ||||||
| 3 | annual tax under any of the provisions of this Act shall, | ||||||
| 4 | before it may levy such tax, establish a 7 member community | ||||||
| 5 | mental health board who shall administer this Act. Such board | ||||||
| 6 | shall be appointed by the chairman of the governing body of a | ||||||
| 7 | county, the mayor of a city, the president of a village, the | ||||||
| 8 | president of an incorporated town, or the supervisor of a | ||||||
| 9 | township, as the case may be, with the advice and consent of | ||||||
| 10 | the governing body of such county, city, village, incorporated | ||||||
| 11 | town or the town board of trustees of any township, except in | ||||||
| 12 | any county with a county executive form of government, if | ||||||
| 13 | applicable, the county executive shall appoint the board with | ||||||
| 14 | the advice and consent of the county board. Members of the | ||||||
| 15 | community mental health board shall be residents of the | ||||||
| 16 | government unit and, as nearly as possible, be representative | ||||||
| 17 | of interested groups of the community such as local health | ||||||
| 18 | departments, medical societies, local comprehensive health | ||||||
| 19 | planning agencies, hospital boards, lay associations concerned | ||||||
| 20 | with mental health, developmental disabilities and substance | ||||||
| 21 | abuse, and individuals with professional or lived expertise in | ||||||
| 22 | mental health, developmental disabilities, and substance abuse | ||||||
| 23 | as well as the general public. General public representation | ||||||
| 24 | may also be considered for appointment when there are gaps in | ||||||
| 25 | board duties and qualifications that cannot be filled from the | ||||||
| |||||||
| |||||||
| 1 | above stated categories. Only one member shall be a member of | ||||||
| 2 | the governing body, with the term of membership on the board to | ||||||
| 3 | run concurrently with the elected term of the member. The | ||||||
| 4 | chairman of the governing body may, upon the request of the | ||||||
| 5 | community mental health board, appoint 2 additional members to | ||||||
| 6 | the community mental health board. No member of the community | ||||||
| 7 | mental health board may be a full-time or part-time employee | ||||||
| 8 | of the Department of Human Services or a board member, | ||||||
| 9 | employee or any other individual receiving compensation from | ||||||
| 10 | any facility or service operating under contract to the board. | ||||||
| 11 | If a successful referendum is held under Section 5 of this Act, | ||||||
| 12 | all members of such board shall be appointed within 60 days | ||||||
| 13 | after the local election authority certifies the passage of | ||||||
| 14 | the referendum. If a community mental health board has been | ||||||
| 15 | established by a county with a population of less than 500,000 | ||||||
| 16 | and the community mental health board is funded in whole or in | ||||||
| 17 | part by a special mental health sales tax described in | ||||||
| 18 | paragraph (4) of subsection (a) of Section 5-1006.5 of the | ||||||
| 19 | Counties Code, the largest municipality in the county with at | ||||||
| 20 | least 125,000 residents may appoint 2 additional members to | ||||||
| 21 | the board. The members shall be appointed by the mayor of the | ||||||
| 22 | municipality with the advice and consent of the municipality's | ||||||
| 23 | governing body. | ||||||
| 24 | Home rule units are exempt from this Act. However, they | ||||||
| 25 | may, by ordinance, adopt the provisions of this Act, or any | ||||||
| 26 | portion thereof, that they may deem advisable. | ||||||
| |||||||
| |||||||
| 1 | The tax rate set forth in Section 4 may be levied by any | ||||||
| 2 | non-home rule unit only pursuant to the approval by the voters | ||||||
| 3 | at a referendum. Such referendum may have been held at any time | ||||||
| 4 | subsequent to the effective date of the Community Mental | ||||||
| 5 | Health Act. | ||||||
| 6 | (Source: P.A. 103-274, eff. 1-1-24; 103-565, eff. 11-17-23.)
| ||||||
| 7 | (405 ILCS 20/3b) (from Ch. 91 1/2, par. 303b) | ||||||
| 8 | Sec. 3b. The term of office of each member of the community | ||||||
| 9 | mental health board shall be for 4 years, provided, however, | ||||||
| 10 | that of the members first appointed, 2 shall be appointed for a | ||||||
| 11 | term of 2 years, 2 for a term of 3 years and 3 for a term of 4 | ||||||
| 12 | years. All terms shall be measured from the first day of the | ||||||
| 13 | month of appointment. Vacancies shall be filled for the | ||||||
| 14 | unexpired term in the same manner as original appointments | ||||||
| 15 | with the advice of the community mental health board, who may | ||||||
| 16 | establish a policy and procedure for the acceptance and review | ||||||
| 17 | of applications from interested residents prior to making a | ||||||
| 18 | recommendation to the appointing authority. A community mental | ||||||
| 19 | health board may provide advice to the governing body and may | ||||||
| 20 | establish a policy and procedure for the acceptance and review | ||||||
| 21 | of applications from interested residents prior to making a | ||||||
| 22 | recommendation to the appointing authority. | ||||||
| 23 | (Source: P.A. 103-274, eff. 1-1-24.)
| ||||||
| 24 | (405 ILCS 20/3e) (from Ch. 91 1/2, par. 303e) | ||||||
| |||||||
| |||||||
| 1 | Sec. 3e. Board's powers and duties. | ||||||
| 2 | (1) Every community mental health board shall, within 30 | ||||||
| 3 | days after members are first appointed and within 30 days | ||||||
| 4 | after members are appointed or reappointed upon the expiration | ||||||
| 5 | of a member's term, meet and organize, by the election of one | ||||||
| 6 | of its number as president and one as secretary and such other | ||||||
| 7 | officers as it may deem necessary. It shall make rules and | ||||||
| 8 | regulations concerning the rendition or operation of services | ||||||
| 9 | and facilities which it directs, supervises or funds, not | ||||||
| 10 | inconsistent with the provisions of this Act. It shall: | ||||||
| 11 | (a) Hold a meeting prior to July 1 of each year at | ||||||
| 12 | which officers shall be elected for the ensuing year | ||||||
| 13 | beginning July 1. If the community mental health board has | ||||||
| 14 | already held or scheduled an election to take place prior | ||||||
| 15 | to July 1, an additional election is not required on the | ||||||
| 16 | basis of the appointment or reappointment of a member to | ||||||
| 17 | the community mental health board; | ||||||
| 18 | (b) Hold meetings at least quarterly; | ||||||
| 19 | (c) Hold special meetings upon a written request | ||||||
| 20 | signed by at least 2 members and filed with the secretary; | ||||||
| 21 | (d) Review and evaluate community mental health | ||||||
| 22 | services and facilities, including services and facilities | ||||||
| 23 | for the treatment of alcoholism, drug addiction, | ||||||
| 24 | developmental disabilities, and intellectual | ||||||
| 25 | disabilities; | ||||||
| 26 | (e) Authorize the disbursement of money from the | ||||||
| |||||||
| |||||||
| 1 | community mental health fund for payment for the ordinary | ||||||
| 2 | and contingent expenses of the board; | ||||||
| 3 | (f) Submit to the appointing officer and the members | ||||||
| 4 | of the governing body a written plan for a program of | ||||||
| 5 | community mental health services and facilities for | ||||||
| 6 | persons with a mental illness, a developmental disability, | ||||||
| 7 | or a substance use disorder. Such plan shall be for the | ||||||
| 8 | ensuing 12 month period. In addition, a plan shall be | ||||||
| 9 | developed for the ensuing 3 year period and such plan | ||||||
| 10 | shall be reviewed at the end of every 12 month period and | ||||||
| 11 | shall be modified as deemed advisable; . | ||||||
| 12 | (g) Within amounts appropriated therefor, execute such | ||||||
| 13 | programs and maintain such services and facilities as may | ||||||
| 14 | be authorized under such appropriations, including amounts | ||||||
| 15 | appropriated under bond issues, if any; | ||||||
| 16 | (h) Publish the annual budget and report within 180 | ||||||
| 17 | 120 days after the end of the fiscal year in a newspaper | ||||||
| 18 | distributed within the jurisdiction of the board, or, if | ||||||
| 19 | no newspaper is published within the jurisdiction of the | ||||||
| 20 | board, then one published in the county, or, if no | ||||||
| 21 | newspaper is published in the county, then in a newspaper | ||||||
| 22 | having general circulation within the jurisdiction of the | ||||||
| 23 | board. The report shall show the condition of its trust of | ||||||
| 24 | that year, the sums of money received from all sources, | ||||||
| 25 | giving the name of any donor, how all monies have been | ||||||
| 26 | expended and for what purpose, and such other statistics | ||||||
| |||||||
| |||||||
| 1 | and program information in regard to the work of the board | ||||||
| 2 | as it may deem of general interest. A copy of the budget | ||||||
| 3 | and the annual report shall be made available to the | ||||||
| 4 | Department of Human Services and to members of the General | ||||||
| 5 | Assembly whose districts include any part of the | ||||||
| 6 | jurisdiction of such board. The names of all employees, | ||||||
| 7 | consultants, and other personnel shall be set forth along | ||||||
| 8 | with the amounts of money received; | ||||||
| 9 | (i) Consult with other appropriate private and public | ||||||
| 10 | agencies in the development of local plans for the most | ||||||
| 11 | efficient delivery of mental health, developmental | ||||||
| 12 | disabilities, and substance use disorder services. The | ||||||
| 13 | Board is authorized to join and to participate in the | ||||||
| 14 | activities of associations organized for the purpose of | ||||||
| 15 | promoting more efficient and effective services and | ||||||
| 16 | programs; | ||||||
| 17 | (j) Have the authority to review and comment on all | ||||||
| 18 | applications for grants by any person, corporation, or | ||||||
| 19 | governmental unit providing services within the | ||||||
| 20 | geographical area of the board which provides mental | ||||||
| 21 | health facilities and services, including services for the | ||||||
| 22 | person with a mental illness, a developmental disability, | ||||||
| 23 | or a substance use disorder. The board may require funding | ||||||
| 24 | applicants to send a copy of their funding application to | ||||||
| 25 | the board at the time such application is submitted to the | ||||||
| 26 | Department of Human Services or to any other local, State | ||||||
| |||||||
| |||||||
| 1 | or federal funding source or governmental agency. Within | ||||||
| 2 | 60 days of the receipt of any application, the board shall | ||||||
| 3 | submit its review and comments to the Department of Human | ||||||
| 4 | Services or to any other appropriate local, State or | ||||||
| 5 | federal funding source or governmental agency. A copy of | ||||||
| 6 | the review and comments shall be submitted to the funding | ||||||
| 7 | applicant. Within 60 days thereafter, the Department of | ||||||
| 8 | Human Services or any other appropriate local or State | ||||||
| 9 | governmental agency shall issue a written response to the | ||||||
| 10 | board and the funding applicant. The Department of Human | ||||||
| 11 | Services or any other appropriate local or State | ||||||
| 12 | governmental agency shall supply any community mental | ||||||
| 13 | health board such information about purchase-of-care | ||||||
| 14 | funds, State facility utilization, and costs in its | ||||||
| 15 | geographical area as the board may request provided that | ||||||
| 16 | the information requested is for the purpose of the | ||||||
| 17 | Community Mental Health Board complying with the | ||||||
| 18 | requirements of Section 3f, subsection (f) of this Act; | ||||||
| 19 | (k) Perform such other acts as may be necessary or | ||||||
| 20 | proper to carry out the purposes of this Act. | ||||||
| 21 | (2) The community mental health board has the following | ||||||
| 22 | powers: | ||||||
| 23 | (a) The board may enter into multiple-year contracts | ||||||
| 24 | for rendition or operation of services, facilities and | ||||||
| 25 | educational programs. | ||||||
| 26 | (b) The board may arrange through intergovernmental | ||||||
| |||||||
| |||||||
| 1 | agreements or intragovernmental agreements or both for the | ||||||
| 2 | rendition of services and operation of facilities by other | ||||||
| 3 | agencies or departments of the governmental unit or county | ||||||
| 4 | in which the governmental unit is located with the | ||||||
| 5 | approval of the governing body. | ||||||
| 6 | (c) To employ, establish compensation for, and set | ||||||
| 7 | policies for its personnel, including legal counsel, as | ||||||
| 8 | may be necessary to carry out the purposes of this Act and | ||||||
| 9 | prescribe the duties thereof. The board may enter into | ||||||
| 10 | multiple-year employment contracts as may be necessary for | ||||||
| 11 | the recruitment and retention of personnel and the proper | ||||||
| 12 | functioning of the board. | ||||||
| 13 | (d) The board may enter into multiple-year joint | ||||||
| 14 | agreements, which shall be written, with other mental | ||||||
| 15 | health boards and boards of health to provide jointly | ||||||
| 16 | agreed upon community mental health facilities and | ||||||
| 17 | services and to pool such funds as may be deemed necessary | ||||||
| 18 | and available for this purpose. | ||||||
| 19 | (e) The board may organize a not-for-profit | ||||||
| 20 | corporation for the purpose of providing direct recipient | ||||||
| 21 | services. Such corporations shall have, in addition to all | ||||||
| 22 | other lawful powers, the power to contract with persons to | ||||||
| 23 | furnish services for recipients of the corporation's | ||||||
| 24 | facilities, including psychiatrists and other physicians | ||||||
| 25 | licensed in this State to practice medicine in all of its | ||||||
| 26 | branches. Such physicians shall be considered independent | ||||||
| |||||||
| |||||||
| 1 | contractors, and liability for any malpractice shall not | ||||||
| 2 | extend to such corporation, nor to the community mental | ||||||
| 3 | health board, except for gross negligence in entering into | ||||||
| 4 | such a contract. | ||||||
| 5 | (f) The board shall not operate any direct recipient | ||||||
| 6 | services for more than a 2-year period when such services | ||||||
| 7 | are being provided in the governmental unit, but shall | ||||||
| 8 | encourage, by financial support, the development of | ||||||
| 9 | private agencies to deliver such needed services, pursuant | ||||||
| 10 | to regulations of the board. | ||||||
| 11 | (g) Where there are multiple boards within the same | ||||||
| 12 | planning area, as established by the Department of Human | ||||||
| 13 | Services, services may be purchased through a single | ||||||
| 14 | delivery system. In such areas, a coordinating body with | ||||||
| 15 | representation from each board shall be established to | ||||||
| 16 | carry out the service functions of this Act. In the event | ||||||
| 17 | any such coordinating body purchases or improves real | ||||||
| 18 | property, such body shall first obtain the approval of the | ||||||
| 19 | governing bodies of the governmental units in which the | ||||||
| 20 | coordinating body is located. | ||||||
| 21 | (h) The board may enter into multiple-year joint | ||||||
| 22 | agreements with other governmental units located within | ||||||
| 23 | the geographical area of the board. Such agreements shall | ||||||
| 24 | be written and shall provide for the rendition of services | ||||||
| 25 | by the board to the residents of such governmental units. | ||||||
| 26 | (i) The board may enter into multiple-year joint | ||||||
| |||||||
| |||||||
| 1 | agreements with federal, State, and local governments, | ||||||
| 2 | including the Department of Human Services or any other | ||||||
| 3 | appropriate local or State governmental agency, whereby | ||||||
| 4 | the board will provide certain services. All such joint | ||||||
| 5 | agreements must provide for the exchange of relevant data. | ||||||
| 6 | However, nothing in this Act shall be construed to permit | ||||||
| 7 | the abridgement of the confidentiality of patient records. | ||||||
| 8 | (j) The board may receive gifts from private sources | ||||||
| 9 | for purposes not inconsistent with the provisions of this | ||||||
| 10 | Act. | ||||||
| 11 | (k) The board may receive federal Federal, State, and | ||||||
| 12 | local funds for purposes not inconsistent with the | ||||||
| 13 | provisions of this Act. | ||||||
| 14 | (l) The board may establish scholarship programs. Such | ||||||
| 15 | programs shall require equivalent service or reimbursement | ||||||
| 16 | pursuant to regulations of the board. | ||||||
| 17 | (m) The board may sell, rent, or lease real property | ||||||
| 18 | for purposes consistent with this Act. | ||||||
| 19 | (n) The board may: (i) own real property, lease real | ||||||
| 20 | property as lessee, or acquire real property by purchase, | ||||||
| 21 | construction, lease-purchase agreement, or otherwise; (ii) | ||||||
| 22 | take title to the property in the board's name; (iii) | ||||||
| 23 | borrow money and issue debt instruments, mortgages, | ||||||
| 24 | purchase-money mortgages, and other security instruments | ||||||
| 25 | with respect to the property; and (iv) maintain, repair, | ||||||
| 26 | remodel, or improve the property. All of these activities | ||||||
| |||||||
| |||||||
| 1 | must be for purposes consistent with this Act as may be | ||||||
| 2 | reasonably necessary for the housing and proper | ||||||
| 3 | functioning of the board. The board may use moneys in the | ||||||
| 4 | Community Mental Health Fund for these purposes. | ||||||
| 5 | (o) The board may organize a not-for-profit | ||||||
| 6 | corporation (i) for the purpose of raising money to be | ||||||
| 7 | distributed by the board for providing community mental | ||||||
| 8 | health services and facilities for the treatment of | ||||||
| 9 | alcoholism, drug addiction, developmental disabilities, | ||||||
| 10 | and intellectual disabilities or (ii) for other purposes | ||||||
| 11 | not inconsistent with this Act. | ||||||
| 12 | (p) The board may fix a fiscal year for the board. | ||||||
| 13 | (q) The board has the responsibility to set, maintain, | ||||||
| 14 | and implement the budget. | ||||||
| 15 | (r) The board may establish professional incentive | ||||||
| 16 | programs for the purposes of workforce development and | ||||||
| 17 | retention that may include education assistance, student | ||||||
| 18 | loan repayment, professional certification and licensure | ||||||
| 19 | assistance, and internship stipends. | ||||||
| 20 | Every board shall be subject to the requirements under the | ||||||
| 21 | Freedom of Information Act and the Open Meetings Act. | ||||||
| 22 | (Source: P.A. 103-274, eff. 1-1-24; revised 1-20-24.)
| ||||||
| 23 | (405 ILCS 20/3f) (from Ch. 91 1/2, par. 303f) | ||||||
| 24 | Sec. 3f. Annually, each community mental health board | ||||||
| 25 | shall prepare and submit, for informational purposes in the | ||||||
| |||||||
| |||||||
| 1 | appropriations process, to the appointing officer and | ||||||
| 2 | governing body referred to in Section 3a: (a) an annual budget | ||||||
| 3 | showing the estimated receipts and intended disbursements | ||||||
| 4 | pursuant to this Act for the fiscal year immediately following | ||||||
| 5 | the date the budget is submitted, which date must be at least | ||||||
| 6 | 30 days prior to the start of the fiscal year, and (b) an | ||||||
| 7 | annual report detailing the income received and disbursements | ||||||
| 8 | made pursuant to this Act during the fiscal year just | ||||||
| 9 | preceding the date the annual report is submitted, which date | ||||||
| 10 | must be within 180 90 days of the end close of that fiscal | ||||||
| 11 | year. Such report shall also include those matters set forth | ||||||
| 12 | in Section 8 of this Act. | ||||||
| 13 | (Source: P.A. 95-336, eff. 8-21-07.)
| ||||||
| 14 | (405 ILCS 20/4) (from Ch. 91 1/2, par. 304) | ||||||
| 15 | Sec. 4. In order to provide the necessary funds or to | ||||||
| 16 | supplement existing funds for such community mental health | ||||||
| 17 | facilities and services, including facilities and services for | ||||||
| 18 | the person with a developmental disability or a substance use | ||||||
| 19 | disorder, the governing body of any governmental unit, subject | ||||||
| 20 | to the provisions of Section 5, may levy an annual tax of not | ||||||
| 21 | to exceed .15% upon all of the taxable property in such | ||||||
| 22 | governmental unit at the value thereof, as equalized or | ||||||
| 23 | assessed by the Department of Revenue. Such tax shall be | ||||||
| 24 | levied and collected in the same manner as other governmental | ||||||
| 25 | unit taxes, but shall not be included in any limitation | ||||||
| |||||||
| |||||||
| 1 | otherwise prescribed as to the rate or amount of governmental | ||||||
| 2 | unit taxes, but shall be in addition thereto and in excess | ||||||
| 3 | thereof. | ||||||
| 4 | An annual tax levied by any governmental unit under this | ||||||
| 5 | Section is separate and distinct from all other property taxes | ||||||
| 6 | levied by that governmental unit and (1) shall not be | ||||||
| 7 | considered an increase for purposes of the application of the | ||||||
| 8 | Truth in Taxation Law and its requirements and (2) shall not be | ||||||
| 9 | subject to the Property Tax Extension Limitation Law. | ||||||
| 10 | When collected, such tax shall be paid into a special fund | ||||||
| 11 | to be designated as the "Community Mental Health Fund" which | ||||||
| 12 | shall, upon authorization by the appropriate governmental | ||||||
| 13 | unit, be administered by the community mental health board and | ||||||
| 14 | used only for the purposes specified in this Act. Nothing | ||||||
| 15 | contained herein shall in any way preclude the use of other | ||||||
| 16 | funds available for such purposes under any existing Federal, | ||||||
| 17 | State or local statute. Interest earned from moneys deposited | ||||||
| 18 | in this Fund shall only be used for purposes which are | ||||||
| 19 | authorized by this Act. | ||||||
| 20 | In any city, village, incorporated town, or township which | ||||||
| 21 | levies a tax for the purpose of providing community mental | ||||||
| 22 | health facilities and services and part or all of such city, | ||||||
| 23 | village, incorporated town, or township is in a county or | ||||||
| 24 | township, as the case may be, which levies a tax to provide | ||||||
| 25 | community mental health facilities and services under the | ||||||
| 26 | provisions of this Act, such county or township, as the case | ||||||
| |||||||
| |||||||
| 1 | may be, shall pay to such city, village, incorporated town, or | ||||||
| 2 | township, as the case may be, the entire amount collected from | ||||||
| 3 | taxes under this Section on property subject to a tax which any | ||||||
| 4 | city, village, incorporated town, or township thereof levies | ||||||
| 5 | to provide community mental health facilities and services. | ||||||
| 6 | Whenever any city, village, incorporated town, or township | ||||||
| 7 | receives any payments from a county or township as provided | ||||||
| 8 | above, such city, village, incorporated town, or township | ||||||
| 9 | shall reduce and abate from the tax levied by the authority of | ||||||
| 10 | this Section a rate which would produce an amount equal to the | ||||||
| 11 | amount received from such county or township. | ||||||
| 12 | (Source: P.A. 95-336, eff. 8-21-07.)
| ||||||
| 13 | (405 ILCS 20/5) (from Ch. 91 1/2, par. 305) | ||||||
| 14 | Sec. 5. (a) When the governing body of a governmental unit | ||||||
| 15 | passes a resolution as provided in Section 4 asking that an | ||||||
| 16 | annual tax may be levied for the purpose of providing such | ||||||
| 17 | mental health facilities and services, including facilities | ||||||
| 18 | and services for the person with a developmental disability or | ||||||
| 19 | a substance use disorder, in the community and so instructs | ||||||
| 20 | the clerk of the governmental unit such clerk shall certify | ||||||
| 21 | the proposition to the proper election officials for | ||||||
| 22 | submission at a regular election in accordance with the | ||||||
| 23 | general election law. The proposition shall be in | ||||||
| 24 | substantially the following form: | ||||||
| 25 | ----------------------------
| ||||||
| |||||||
| |||||||
| 1 | Shall............ (governmental
| ||||||
| 2 | unit) levy an annual tax
| ||||||
| 3 | not to exceed of (no not YES
| ||||||
| 4 | more than .15%) for the purpose
| ||||||
| 5 | of providing community mental
| ||||||
| 6 | health facilities and --------------------------------
| ||||||
| 7 | services including facilities
| ||||||
| 8 | and services for persons with
| ||||||
| 9 | a developmental disability or a NO
| ||||||
| 10 | substance use disorder?
| ||||||
| 11 | ------------------------------------------------------------- | ||||||
| 12 | (a-5) In addition, the ballot for any proposition | ||||||
| 13 | submitted pursuant to this Section shall have printed thereon, | ||||||
| 14 | but not as part of the proposition submitted, only the | ||||||
| 15 | following supplemental information (which shall be supplied to | ||||||
| 16 | the election authority by the taxing district) in | ||||||
| 17 | substantially the following form: | ||||||
| 18 | (1) The approximate amount of taxes extendable at the | ||||||
| 19 | most recently extended limiting rate is $...., and the | ||||||
| 20 | approximate amount of taxes extendable if the proposition | ||||||
| 21 | is approved is $.... | ||||||
| 22 | (2) For the .... (insert the first levy year for which | ||||||
| 23 | the new rate or increase limiting rate will be applicable) | ||||||
| 24 | levy year the approximate amount of the additional tax | ||||||
| 25 | extendable against property containing a single family | ||||||
| 26 | residence and having a fair market value at the time of the | ||||||
| |||||||
| |||||||
| 1 | referendum of $100,000 is estimated to be $.... | ||||||
| 2 | If a proposition contains the language in substantially | ||||||
| 3 | the form provided above the referendum is valid | ||||||
| 4 | notwithstanding any other provision of the law. If the | ||||||
| 5 | governmental unit is also subject to the Property Tax | ||||||
| 6 | Extension Limitation Law, then the proposition shall also | ||||||
| 7 | comply with the Property Tax Extension Limitation Law. | ||||||
| 8 | Notwithstanding any provision of this subsection, any | ||||||
| 9 | referendum imposing an annual tax on or after January 1, 1994 | ||||||
| 10 | and prior to the effective date of this amendatory Act of the | ||||||
| 11 | 103rd General Assembly that complies with subsection (a) is | ||||||
| 12 | hereby validated. | ||||||
| 13 | (b) If a majority of all the votes cast upon the | ||||||
| 14 | proposition are for the levy of such tax, the governing body of | ||||||
| 15 | such governmental unit shall thereafter annually levy a tax | ||||||
| 16 | not to exceed the rate set forth in Section 4. Thereafter, the | ||||||
| 17 | governing body shall in the annual appropriation bill | ||||||
| 18 | appropriate from such funds such sum or sums of money as may be | ||||||
| 19 | deemed necessary by the community mental health board, based | ||||||
| 20 | upon the community mental health board's budget, the board's | ||||||
| 21 | annual mental health report, and the local mental health plan | ||||||
| 22 | to defray necessary expenses and liabilities in providing for | ||||||
| 23 | such community mental health facilities and services. | ||||||
| 24 | (c) If the governing body of a governmental unit levies a | ||||||
| 25 | tax under Section 4 of this Act and the rate specified in the | ||||||
| 26 | proposition under subsection (a) of this Section is less than | ||||||
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| 1 | 0.15%, then the governing body of the governmental unit may, | ||||||
| 2 | upon referendum approval, increase that rate to not more than | ||||||
| 3 | 0.15%. The governing body shall instruct the clerk of the | ||||||
| 4 | governmental unit to certify the proposition to the proper | ||||||
| 5 | election officials for submission at a regular election in | ||||||
| 6 | accordance with the general election law. The proposition | ||||||
| 7 | shall be in the following form: | ||||||
| 8 | "Shall the tax imposed by (governmental unit) for the | ||||||
| 9 | purpose of providing community mental health facilities | ||||||
| 10 | and services, including facilities and services for | ||||||
| 11 | persons with a developmental disability or substance use | ||||||
| 12 | disorder be increased to (not more than 0.15%)?" | ||||||
| 13 | If a majority of all the votes cast upon the proposition | ||||||
| 14 | are for the increase of the tax, then the governing body of the | ||||||
| 15 | governmental unit may thereafter annually levy a tax not to | ||||||
| 16 | exceed the rate set forth in the referendum question. Nothing | ||||||
| 17 | in this Section prevents a governmental unit from levying less | ||||||
| 18 | than the amount approved by the voters via referendum in any | ||||||
| 19 | given year or varying the amount levied from year to year as | ||||||
| 20 | approved by the governmental unit. | ||||||
| 21 | (Source: P.A. 102-839, eff. 5-13-22; 102-935, eff. 7-1-22; | ||||||
| 22 | 103-154, eff. 6-30-23; 103-274, eff. 1-1-24; 103-565, eff. | ||||||
| 23 | 11-17-23.)
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| 24 | (405 ILCS 20/6) (from Ch. 91 1/2, par. 306) | ||||||
| 25 | Sec. 6. Whenever the governing body of any governmental | ||||||
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| 1 | unit has not provided the community mental health facilities | ||||||
| 2 | and services provided in Section 2 and levied the tax provided | ||||||
| 3 | in Section 4 and a petition signed by electors of the | ||||||
| 4 | governmental unit equal in number to at least 10% of the total | ||||||
| 5 | votes cast for the office which received the greatest total | ||||||
| 6 | number of votes at the last preceding general governmental | ||||||
| 7 | unit election is presented to the clerk of the governmental | ||||||
| 8 | unit requesting the establishment and maintenance of such | ||||||
| 9 | community mental health facilities and services, including | ||||||
| 10 | facilities and services for the person with a developmental | ||||||
| 11 | disability or a substance use disorder, for residents thereof | ||||||
| 12 | and the levy of such an annual tax therefor, the governing body | ||||||
| 13 | of the governmental unit, subject to the provisions of Section | ||||||
| 14 | 7, shall establish and maintain such community mental health | ||||||
| 15 | facilities and services and shall levy such an annual tax of | ||||||
| 16 | not to exceed .15% upon all of the taxable property in such | ||||||
| 17 | governmental unit at the value thereof, as equalized or | ||||||
| 18 | assessed by the Department of Revenue. Such tax shall be | ||||||
| 19 | levied and collected in the same manner as other governmental | ||||||
| 20 | unit taxes, but shall not be included in any limitation | ||||||
| 21 | otherwise prescribed as to the rate or amount of governmental | ||||||
| 22 | unit taxes, but shall be in addition thereto and in excess | ||||||
| 23 | thereof. | ||||||
| 24 | An annual tax levied by any governmental unit under this | ||||||
| 25 | Section is separate and distinct from all other property taxes | ||||||
| 26 | levied by that governmental unit and (1) shall not be | ||||||
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| 1 | considered an increase for purposes of the application of the | ||||||
| 2 | Truth in Taxation Law and its requirements and (2) shall not be | ||||||
| 3 | subject to the Property Tax Extension Limitation Law. | ||||||
| 4 | When collected, such tax shall be paid into a special fund | ||||||
| 5 | to be designated as the "Community Mental Health Fund" which | ||||||
| 6 | shall, upon authorization by the appropriate governmental | ||||||
| 7 | unit, be administered by the community mental health board and | ||||||
| 8 | used only for the purposes specified in this Act. Nothing | ||||||
| 9 | contained herein shall in any way preclude the use of other | ||||||
| 10 | funds available for such purposes under any existing Federal, | ||||||
| 11 | State or local statute. Interest earned from moneys deposited | ||||||
| 12 | in this Fund shall only be used for purposes which are | ||||||
| 13 | authorized by this Act. | ||||||
| 14 | In any city, village, incorporated town, or township which | ||||||
| 15 | levies a tax for the purpose of providing community mental | ||||||
| 16 | health facilities and services and part or all of such city, | ||||||
| 17 | village, incorporated town, or township is in a county or | ||||||
| 18 | township, as the case may be, which levies a tax to provide | ||||||
| 19 | community mental health facilities and services under the | ||||||
| 20 | provisions of this Act, such county or township, as the case | ||||||
| 21 | may be, shall pay to such city, village, incorporated town, or | ||||||
| 22 | township, as the case may be, the entire amount collected from | ||||||
| 23 | taxes under this Section on property subject to a tax which any | ||||||
| 24 | city, village, incorporated town, or township thereof levies | ||||||
| 25 | to provide community mental health facilities and services. | ||||||
| 26 | Whenever any city, village, incorporated town, or township | ||||||
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| 1 | receives any payments from a county or township as provided | ||||||
| 2 | above, such city, village, incorporated town, or township | ||||||
| 3 | shall reduce and abate from the tax levied by the authority of | ||||||
| 4 | this Section a rate which would produce an amount equal to the | ||||||
| 5 | amount received from such county or township. | ||||||
| 6 | (Source: P.A. 95-336, eff. 8-21-07.)
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| 7 | (405 ILCS 20/7) (from Ch. 91 1/2, par. 307) | ||||||
| 8 | Sec. 7. When the petition provided for in Section 6 is | ||||||
| 9 | presented to the clerk of the governmental unit requesting the | ||||||
| 10 | establishment and maintenance of such mental health facilities | ||||||
| 11 | and services for residents of the community and the levy of | ||||||
| 12 | such an annual tax therefor, the clerk of the governmental | ||||||
| 13 | unit shall certify to the proper election officials the | ||||||
| 14 | proposition for the levy of such tax which shall be submitted | ||||||
| 15 | at a regular election in accordance with the general election | ||||||
| 16 | law. The proposition shall be in substantially the following | ||||||
| 17 | form: | ||||||
| 18 | --------------------------------------------------------
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| 19 | Shall....................
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| 20 | (governmental unit) establish and
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| 21 | maintain community mental health YES
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| 22 | facilities and services including
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| 23 | facilities and services for the ----------------------
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| 24 | person with a developmental
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| 25 | disability or a substance NO
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| 1 | use disorder and levy therefor an
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| 2 | annual tax of not to exceed .15%?
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| 3 | ------------------------------------------------------------- | ||||||
| 4 | In addition to certification of the question, the clerk of | ||||||
| 5 | the governmental unit shall prepare and submit to the proper | ||||||
| 6 | elected officials the following language which shall have | ||||||
| 7 | printed thereon, but not as part of the proposition submitted, | ||||||
| 8 | only the following supplemental information (which shall be | ||||||
| 9 | supplied to the election authority by the taxing district) in | ||||||
| 10 | substantially the following form: | ||||||
| 11 | (1) The approximate amount of taxes extendable at the | ||||||
| 12 | most recently extended limiting rate is $...., and the | ||||||
| 13 | approximate amount of taxes extendable if the proposition | ||||||
| 14 | is approved is $.... | ||||||
| 15 | (2) For the .... (insert the first levy year for which | ||||||
| 16 | the new rate or increase limiting rate will be applicable) | ||||||
| 17 | levy year the approximate amount of the additional tax | ||||||
| 18 | extendable against property containing a single family | ||||||
| 19 | residence and having a fair market value at the time of the | ||||||
| 20 | referendum of $100,000 is estimated to be $.... | ||||||
| 21 | If a proposition contains the language in substantially | ||||||
| 22 | the form provided in paragraphs (1) and (2), the referendum is | ||||||
| 23 | valid notwithstanding any other provision of the law. | ||||||
| 24 | If a majority of all the votes cast upon the proposition | ||||||
| 25 | are in favor thereof, the governing body of such governmental | ||||||
| 26 | unit shall establish and maintain such community mental health | ||||||
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| 1 | facilities and services and shall annually levy such tax. | ||||||
| 2 | Thereafter, the governing body shall in the annual | ||||||
| 3 | appropriation bill appropriate from such funds such sum or | ||||||
| 4 | sums of money as may be deemed necessary, based upon the | ||||||
| 5 | community mental health board's budget, the board's annual | ||||||
| 6 | mental health report, and the board's plan to defray necessary | ||||||
| 7 | expenses and liabilities in providing for such community | ||||||
| 8 | mental health facilities and services. | ||||||
| 9 | Nothing in this Section prevents a governmental unit from | ||||||
| 10 | levying less than the amount approved by the voters via | ||||||
| 11 | referendum in any given year or varying the amount levied from | ||||||
| 12 | year to year as approved by the governmental unit. | ||||||
| 13 | (Source: P.A. 95-336, eff. 8-21-07.)
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| 14 | Section 175-97. Retroactivity. The changes made by this | ||||||
| 15 | Article apply to referenda creating community mental health | ||||||
| 16 | boards, including community mental health boards located in | ||||||
| 17 | counties that have adopted a county executive form of | ||||||
| 18 | government under Division 2-5 of the Counties Code, to levy an | ||||||
| 19 | annual tax for the establishment and maintenance of mental | ||||||
| 20 | health facilities and services for residents of the community | ||||||
| 21 | that were approved or validated on or after January 1, 2020 and | ||||||
| 22 | to referenda that are approved on or after the effective date | ||||||
| 23 | of this Article.
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| 24 | ARTICLE 999. | ||||||
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| 1 | Section 999-95. No acceleration or delay. Where this Act | ||||||
| 2 | makes changes in a statute that is represented in this Act by | ||||||
| 3 | text that is not yet or no longer in effect (for example, a | ||||||
| 4 | Section represented by multiple versions), the use of that | ||||||
| 5 | text does not accelerate or delay the taking effect of (i) the | ||||||
| 6 | changes made by this Act or (ii) provisions derived from any | ||||||
| 7 | other Public Act.
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| 8 | Section 999-97. Severability. The provisions of this Act | ||||||
| 9 | are severable under Section 1.31 of the Statute on Statutes.
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