103RD GENERAL ASSEMBLY State of Illinois 2023 and 2024 HB2556

Introduced , by Rep. Sonya M. Harper

SYNOPSIS AS INTRODUCED:

`30 ILCS 105/5.990 new`
`35 ILCS 105/3-10`
`35 ILCS 105/9`	`from Ch. 120, par. 439.9`
`35 ILCS 110/3-10`	`from Ch. 120, par. 439.33-10`
`35 ILCS 110/9`	`from Ch. 120, par. 439.39`
`35 ILCS 115/3-10`	`from Ch. 120, par. 439.103-10`
`35 ILCS 115/9`	`from Ch. 120, par. 439.109`
`35 ILCS 120/2-10`
`35 ILCS 120/3`	`from Ch. 120, par. 442`
`105 ILCS 5/10-20.85 new`
`105 ILCS 5/34-18.82 new`
`110 ILCS 330/15 new`
`210 ILCS 85/6.34 new`

Amends the State Finance Act to create the Trauma Response Fund as a special fund in the State treasury. Amends the School Code. Requires school boards to develop a trauma response protocol that shall be implemented in response to a traumatic event at a school, including, but not limited to, a shooting at the school. Sets forth various requirements for the protocol, including response by hospitals, trauma intervention services, and community engagement. Provides that all moneys in the Trauma Response Fund shall be paid as grants to school districts to implement the trauma response protocol. Amends the University of Illinois Hospital Act and Hospital Licensing Act to make conforming changes. Amends the Use Tax Act, Service Use Tax Act, Service Occupation Tax Act, and Retailers' Occupation Tax Act. Imposes a 1% surcharge on firearm ammunition, which shall be deposited into the Trauma Response Fund. Effective immediately.

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A BILL FOR

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1 AN ACT concerning education.

2 Be it enacted by the People of the State of Illinois,

3 represented in the General Assembly:

4 Section 5. The State Finance Act is amended by adding

5 Section 5.990 as follows:

6 (30 ILCS 105/5.990 new)

7 Sec. 5.990. The Trauma Response Fund.

8 Section 10. The Use Tax Act is amended by changing

9 Sections 3-10 and 9 as follows:

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. In all cases where property

15 functionally used or consumed is the same as the property that

16 was purchased at retail, then the tax is imposed on the selling

17 price of the property. In all cases where property

18 functionally used or consumed is a by-product or waste product

19 that has been refined, manufactured, or produced from property

20 purchased at retail, then the tax is imposed on the lower of

21 the fair market value, if any, of the specific property so used

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1 in this State or on the selling price of the property purchased

2 at retail. For purposes of this Section "fair market value"

3 means the price at which property would change hands between a

4 willing buyer and a willing seller, neither being under any

5 compulsion to buy or sell and both having reasonable knowledge

6 of the relevant facts. The fair market value shall be

7 established by Illinois sales by the taxpayer of the same

8 property as that functionally used or consumed, or if there

9 are no such sales by the taxpayer, then comparable sales or

10 purchases of property of like kind and character in Illinois.

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 3-6 of this Act, the tax is imposed at the rate of 1.25%.

19 With respect to gasohol, the tax imposed by this Act

20 applies to (i) 70% of the proceeds of sales made on or after

21 January 1, 1990, and before July 1, 2003, (ii) 80% of the

22 proceeds of sales made on or after July 1, 2003 and on or

23 before July 1, 2017, and (iii) 100% of the proceeds of sales

24 made thereafter. If, at any time, however, the tax under this

25 Act on sales of gasohol is imposed at the rate of 1.25%, then

26 the tax imposed by this Act applies to 100% of the proceeds of

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1 sales of gasohol made during that time.

2 With respect to majority blended ethanol fuel, the tax

3 imposed by this Act does not apply to the proceeds of sales

4 made on or after July 1, 2003 and on or before December 31,

5 2023 but applies to 100% of the proceeds of sales made

6 thereafter.

7 With respect to biodiesel blends with no less than 1% and

8 no more than 10% biodiesel, the tax imposed by this Act applies

9 to (i) 80% of the proceeds of sales made on or after July 1,

10 2003 and on or before December 31, 2018 and (ii) 100% of the

11 proceeds of sales made after December 31, 2018 and before

12 January 1, 2024. On and after January 1, 2024 and on or before

13 December 31, 2030, the taxation of biodiesel, renewable

14 diesel, and biodiesel blends shall be as provided in Section

15 3-5.1. If, at any time, however, the tax under this Act on

16 sales of biodiesel blends with no less than 1% and no more than

17 10% biodiesel is imposed at the rate of 1.25%, then the tax

18 imposed by this Act applies to 100% of the proceeds of sales of

19 biodiesel blends with no less than 1% and no more than 10%

20 biodiesel made during that time.

21 With respect to biodiesel and biodiesel blends with more

22 than 10% but no more than 99% biodiesel, the tax imposed by

23 this Act does not apply to the proceeds of sales made on or

24 after July 1, 2003 and on or before December 31, 2023. On and

25 after January 1, 2024 and on or before December 31, 2030, the

26 taxation of biodiesel, renewable diesel, and biodiesel blends

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1 shall be as provided in Section 3-5.1.

2 Until July 1, 2022 and beginning again on July 1, 2023,

3 with respect to food for human consumption that is to be

4 consumed off the premises where it is sold (other than

5 alcoholic beverages, food consisting of or infused with adult

6 use cannabis, soft drinks, and food that has been prepared for

7 immediate consumption), the tax is imposed at the rate of 1%.

8 Beginning on July 1, 2022 and until July 1, 2023, with respect

9 to food for human consumption that is to be consumed off the

10 premises where it is sold (other than alcoholic beverages,

11 food consisting of or infused with adult use cannabis, soft

12 drinks, and food that has been prepared for immediate

13 consumption), the tax is imposed at the rate of 0%.

14 With respect to prescription and nonprescription

15 medicines, drugs, medical appliances, products classified as

16 Class III medical devices by the United States Food and Drug

17 Administration that are used for cancer treatment pursuant to

18 a prescription, as well as any accessories and components

19 related to those devices, modifications to a motor vehicle for

20 the purpose of rendering it usable by a person with a

21 disability, and insulin, blood sugar testing materials,

22 syringes, and needles used by human diabetics, the tax is

23 imposed at the rate of 1%. For the purposes of this Section,

24 until September 1, 2009: the term "soft drinks" means any

25 complete, finished, ready-to-use, non-alcoholic drink, whether

26 carbonated or not, including, but not limited to,soda water,

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1 cola, fruit juice, vegetable juice, carbonated water, and all

2 other preparations commonly known as soft drinks of whatever

3 kind or description that are contained in any closed or sealed

4 bottle, can, carton, or container, regardless of size; but

5 "soft drinks" does not include coffee, tea, non-carbonated

6 water, infant formula, milk or milk products as defined in the

7 Grade A Pasteurized Milk and Milk Products Act, or drinks

8 containing 50% or more natural fruit or vegetable juice.

9 Notwithstanding any other provisions of this Act,

10 beginning September 1, 2009, "soft drinks" means non-alcoholic

11 beverages that contain natural or artificial sweeteners. "Soft

12 drinks" does ~~do~~ not include beverages that contain milk or

13 milk products, soy, rice or similar milk substitutes, or

14 greater than 50% of vegetable or fruit juice by volume.

15 Until August 1, 2009, and notwithstanding any other

16 provisions of this Act, "food for human consumption that is to

17 be consumed off the premises where it is sold" includes all

18 food sold through a vending machine, except soft drinks and

19 food products that are dispensed hot from a vending machine,

20 regardless of the location of the vending machine. Beginning

21 August 1, 2009, and notwithstanding any other provisions of

22 this Act, "food for human consumption that is to be consumed

23 off the premises where it is sold" includes all food sold

24 through a vending machine, except soft drinks, candy, and food

25 products that are dispensed hot from a vending machine,

26 regardless of the location of the vending machine.

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1 Notwithstanding any other provisions of this Act,

2 beginning September 1, 2009, "food for human consumption that

3 is to be consumed off the premises where it is sold" does not

4 include candy. For purposes of this Section, "candy" means a

5 preparation of sugar, honey, or other natural or artificial

6 sweeteners in combination with chocolate, fruits, nuts or

7 other ingredients or flavorings in the form of bars, drops, or

8 pieces. "Candy" does not include any preparation that contains

9 flour or requires refrigeration.

10 Notwithstanding any other provisions of this Act,

11 beginning September 1, 2009, "nonprescription medicines and

12 drugs" does not include grooming and hygiene products. For

13 purposes of this Section, "grooming and hygiene products"

14 includes, but is not limited to, soaps and cleaning solutions,

15 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan

16 lotions and screens, unless those products are available by

17 prescription only, regardless of whether the products meet the

18 definition of "over-the-counter-drugs". For the purposes of

19 this paragraph, "over-the-counter-drug" means a drug for human

20 use that contains a label that identifies the product as a drug

21 as required by 21 CFR ~~C.F.R. �~~ 201.66. The

22 "over-the-counter-drug" label includes:

23 (A) a ~~A~~ "Drug Facts" panel; or

24 (B) a ~~A~~ statement of the "active ingredient(s)" with a

25 list of those ingredients contained in the compound,

26 substance or preparation.

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1 Beginning on January 1, 2014 (the effective date of Public

2 Act 98-122) ~~this amendatory Act of the 98th General Assembly~~,

3 "prescription and nonprescription medicines and drugs"

4 includes medical cannabis purchased from a registered

5 dispensing organization under the Compassionate Use of Medical

6 Cannabis Program Act.

7 As used in this Section, "adult use cannabis" means

8 cannabis subject to tax under the Cannabis Cultivation

9 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law

10 and does not include cannabis subject to tax under the

11 Compassionate Use of Medical Cannabis Program Act.

12 Beginning July 1, 2023, in addition to all other rates of

13 tax imposed under this Act, a surcharge of 1% is imposed on the

14 selling price of firearm ammunition. "Firearm ammunition" has

15 the meaning given to that term under Section 31A-0.1 of the

16 Criminal Code of 2012.

17 If the property that is purchased at retail from a

18 retailer is acquired outside Illinois and used outside

19 Illinois before being brought to Illinois for use here and is

20 taxable under this Act, the "selling price" on which the tax is

21 computed shall be reduced by an amount that represents a

22 reasonable allowance for depreciation for the period of prior

23 out-of-state use.

24 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;

25 102-4, eff. 4-27-21; 102-700, Article 20, Section 20-5, eff.

26 4-19-22; 102-700, Article 60, Section 60-15, eff. 4-19-22;

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1 102-700, Article 65, Section 65-5, eff. 4-19-22; revised

2 5-27-22.)

3 (35 ILCS 105/9) (from Ch. 120, par. 439.9)

4 Sec. 9. Except as to motor vehicles, watercraft, aircraft,

5 and trailers that are required to be registered with an agency

6 of this State, each retailer required or authorized to collect

7 the tax imposed by this Act shall pay to the Department the

8 amount of such tax (except as otherwise provided) at the time

9 when he is required to file his return for the period during

10 which such tax was collected, less a discount of 2.1% prior to

11 January 1, 1990, and 1.75% on and after January 1, 1990, or $5

12 per calendar year, whichever is greater, which is allowed to

13 reimburse the retailer for expenses incurred in collecting the

14 tax, keeping records, preparing and filing returns, remitting

15 the tax and supplying data to the Department on request. When

16 determining the discount allowed under this Section, retailers

17 shall include the amount of tax that would have been due at the

18 6.25% rate but for the 1.25% rate imposed on sales tax holiday

19 items under Public Act 102-700 ~~this amendatory Act of the~~

20 ~~102nd General Assembly~~. The discount under this Section is not

21 allowed for the 1.25% portion of taxes paid on aviation fuel

22 that is subject to the revenue use requirements of 49 U.S.C.

23 47107(b) and 49 U.S.C. 47133. When determining the discount

24 allowed under this Section, retailers shall include the amount

25 of tax that would have been due at the 1% rate but for the 0%

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1 rate imposed under Public Act 102-700 ~~this amendatory Act of~~

2 ~~the 102nd General Assembly~~. In the case of retailers who

3 report and pay the tax on a transaction by transaction basis,

4 as provided in this Section, such discount shall be taken with

5 each such tax remittance instead of when such retailer files

6 his periodic return. The discount allowed under this Section

7 is allowed only for returns that are filed in the manner

8 required by this Act. The Department may disallow the discount

9 for retailers whose certificate of registration is revoked at

10 the time the return is filed, but only if the Department's

11 decision to revoke the certificate of registration has become

12 final. A retailer need not remit that part of any tax collected

13 by him to the extent that he is required to remit and does

14 remit the tax imposed by the Retailers' Occupation Tax Act,

15 with respect to the sale of the same property.

16 Where such tangible personal property is sold under a

17 conditional sales contract, or under any other form of sale

18 wherein the payment of the principal sum, or a part thereof, is

19 extended beyond the close of the period for which the return is

20 filed, the retailer, in collecting the tax (except as to motor

21 vehicles, watercraft, aircraft, and trailers that are required

22 to be registered with an agency of this State), may collect for

23 each tax return period, only the tax applicable to that part of

24 the selling price actually received during such tax return

25 period.

26 Except as provided in this Section, on or before the

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1 twentieth day of each calendar month, such retailer shall file

2 a return for the preceding calendar month. Such return shall

3 be filed on forms prescribed by the Department and shall

4 furnish such information as the Department may reasonably

5 require. The return shall include the gross receipts on food

6 for human consumption that is to be consumed off the premises

7 where it is sold (other than alcoholic beverages, food

8 consisting of or infused with adult use cannabis, soft drinks,

9 and food that has been prepared for immediate consumption)

10 which were received during the preceding calendar month,

11 quarter, or year, as appropriate, and upon which tax would

12 have been due but for the 0% rate imposed under Public Act

13 102-700 ~~this amendatory Act of the 102nd General Assembly~~. The

14 return shall also include the amount of tax that would have

15 been due on food for human consumption that is to be consumed

16 off the premises where it is sold (other than alcoholic

17 beverages, food consisting of or infused with adult use

18 cannabis, soft drinks, and food that has been prepared for

19 immediate consumption) but for the 0% rate imposed under

20 Public Act 102-700 ~~this amendatory Act of the 102nd General~~

21 ~~Assembly~~.

22 On and after January 1, 2018, except for returns required

23 to be filed prior to January 1, 2023 for motor vehicles,

24 watercraft, aircraft, and trailers that are required to be

25 registered with an agency of this State, with respect to

26 retailers whose annual gross receipts average $20,000 or more,

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1 all returns required to be filed pursuant to this Act shall be

2 filed electronically. On and after January 1, 2023, with

3 respect to retailers whose annual gross receipts average

4 $20,000 or more, all returns required to be filed pursuant to

5 this Act, including, but not limited to, returns for motor

6 vehicles, watercraft, aircraft, and trailers that are required

7 to be registered with an agency of this State, shall be filed

8 electronically. Retailers who demonstrate that they do not

9 have access to the Internet or demonstrate hardship in filing

10 electronically may petition the Department to waive the

11 electronic filing requirement.

12 The Department may require returns to be filed on a

13 quarterly basis. If so required, a return for each calendar

14 quarter shall be filed on or before the twentieth day of the

15 calendar month following the end of such calendar quarter. The

16 taxpayer shall also file a return with the Department for each

17 of the first two months of each calendar quarter, on or before

18 the twentieth day of the following calendar month, stating:

19 1. The name of the seller;

20 2. The address of the principal place of business from

21 which he engages in the business of selling tangible

22 personal property at retail in this State;

23 3. The total amount of taxable receipts received by

24 him during the preceding calendar month from sales of

25 tangible personal property by him during such preceding

26 calendar month, including receipts from charge and time

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1 sales, but less all deductions allowed by law;

2 4. The amount of credit provided in Section 2d of this

3 Act;

4 5. The amount of tax due;

5 5-5. The signature of the taxpayer; and

6 6. Such other reasonable information as the Department

7 may require.

8 Each retailer required or authorized to collect the tax

9 imposed by this Act on aviation fuel sold at retail in this

10 State during the preceding calendar month shall, instead of

11 reporting and paying tax on aviation fuel as otherwise

12 required by this Section, report and pay such tax on a separate

13 aviation fuel tax return. The requirements related to the

14 return shall be as otherwise provided in this Section.

15 Notwithstanding any other provisions of this Act to the

16 contrary, retailers collecting tax on aviation fuel shall file

17 all aviation fuel tax returns and shall make all aviation fuel

18 tax payments by electronic means in the manner and form

19 required by the Department. For purposes of this Section,

20 "aviation fuel" means jet fuel and aviation gasoline.

21 If a taxpayer fails to sign a return within 30 days after

22 the proper notice and demand for signature by the Department,

23 the return shall be considered valid and any amount shown to be

24 due on the return shall be deemed assessed.

25 Notwithstanding any other provision of this Act to the

26 contrary, retailers subject to tax on cannabis shall file all

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1 cannabis tax returns and shall make all cannabis tax payments

2 by electronic means in the manner and form required by the

3 Department.

4 Beginning October 1, 1993, a taxpayer who has an average

5 monthly tax liability of $150,000 or more shall make all

6 payments required by rules of the Department by electronic

7 funds transfer. Beginning October 1, 1994, a taxpayer who has

8 an average monthly tax liability of $100,000 or more shall

9 make all payments required by rules of the Department by

10 electronic funds transfer. Beginning October 1, 1995, a

11 taxpayer who has an average monthly tax liability of $50,000

12 or more shall make all payments required by rules of the

13 Department by electronic funds transfer. Beginning October 1,

14 2000, a taxpayer who has an annual tax liability of $200,000 or

15 more shall make all payments required by rules of the

16 Department by electronic funds transfer. The term "annual tax

17 liability" shall be the sum of the taxpayer's liabilities

18 under this Act, and under all other State and local occupation

19 and use tax laws administered by the Department, for the

20 immediately preceding calendar year. The term "average monthly

21 tax liability" means the sum of the taxpayer's liabilities

22 under this Act, and under all other State and local occupation

23 and use tax laws administered by the Department, for the

24 immediately preceding calendar year divided by 12. Beginning

25 on October 1, 2002, a taxpayer who has a tax liability in the

26 amount set forth in subsection (b) of Section 2505-210 of the

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1 Department of Revenue Law shall make all payments required by

2 rules of the Department by electronic funds transfer.

3 Before August 1 of each year beginning in 1993, the

4 Department shall notify all taxpayers required to make

5 payments by electronic funds transfer. All taxpayers required

6 to make payments by electronic funds transfer shall make those

7 payments for a minimum of one year beginning on October 1.

8 Any taxpayer not required to make payments by electronic

9 funds transfer may make payments by electronic funds transfer

10 with the permission of the Department.

11 All taxpayers required to make payment by electronic funds

12 transfer and any taxpayers authorized to voluntarily make

13 payments by electronic funds transfer shall make those

14 payments in the manner authorized by the Department.

15 The Department shall adopt such rules as are necessary to

16 effectuate a program of electronic funds transfer and the

17 requirements of this Section.

18 Before October 1, 2000, if the taxpayer's average monthly

19 tax liability to the Department under this Act, the Retailers'

20 Occupation Tax Act, the Service Occupation Tax Act, the

21 Service Use Tax Act was $10,000 or more during the preceding 4

22 complete calendar quarters, he shall file a return with the

23 Department each month by the 20th day of the month next

24 following the month during which such tax liability is

25 incurred and shall make payments to the Department on or

26 before the 7th, 15th, 22nd and last day of the month during

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1 which such liability is incurred. On and after October 1,

2 2000, if the taxpayer's average monthly tax liability to the

3 Department under this Act, the Retailers' Occupation Tax Act,

4 the Service Occupation Tax Act, and the Service Use Tax Act was

5 $20,000 or more during the preceding 4 complete calendar

6 quarters, he shall file a return with the Department each

7 month by the 20th day of the month next following the month

8 during which such tax liability is incurred and shall make

9 payment to the Department on or before the 7th, 15th, 22nd and

10 last day of the month during which such liability is incurred.

11 If the month during which such tax liability is incurred began

12 prior to January 1, 1985, each payment shall be in an amount

13 equal to 1/4 of the taxpayer's actual liability for the month

14 or an amount set by the Department not to exceed 1/4 of the

15 average monthly liability of the taxpayer to the Department

16 for the preceding 4 complete calendar quarters (excluding the

17 month of highest liability and the month of lowest liability

18 in such 4 quarter period). If the month during which such tax

19 liability is incurred begins on or after January 1, 1985, and

20 prior to January 1, 1987, each payment shall be in an amount

21 equal to 22.5% of the taxpayer's actual liability for the

22 month or 27.5% of the taxpayer's liability for the same

23 calendar month of the preceding year. If the month during

24 which such tax liability is incurred begins on or after

25 January 1, 1987, and prior to January 1, 1988, each payment

26 shall be in an amount equal to 22.5% of the taxpayer's actual

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1 liability for the month or 26.25% of the taxpayer's liability

2 for the same calendar month of the preceding year. If the month

3 during which such tax liability is incurred begins on or after

4 January 1, 1988, and prior to January 1, 1989, or begins on or

5 after January 1, 1996, each payment shall be in an amount equal

6 to 22.5% of the taxpayer's actual liability for the month or

7 25% of the taxpayer's liability for the same calendar month of

8 the preceding year. If the month during which such tax

9 liability is incurred begins on or after January 1, 1989, and

10 prior to January 1, 1996, each payment shall be in an amount

11 equal to 22.5% of the taxpayer's actual liability for the

12 month or 25% of the taxpayer's liability for the same calendar

13 month of the preceding year or 100% of the taxpayer's actual

14 liability for the quarter monthly reporting period. The amount

15 of such quarter monthly payments shall be credited against the

16 final tax liability of the taxpayer's return for that month.

17 Before October 1, 2000, once applicable, the requirement of

18 the making of quarter monthly payments to the Department shall

19 continue until such taxpayer's average monthly liability to

20 the Department during the preceding 4 complete calendar

21 quarters (excluding the month of highest liability and the

22 month of lowest liability) is less than $9,000, or until such

23 taxpayer's average monthly liability to the Department as

24 computed for each calendar quarter of the 4 preceding complete

25 calendar quarter period is less than $10,000. However, if a

26 taxpayer can show the Department that a substantial change in

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1 the taxpayer's business has occurred which causes the taxpayer

2 to anticipate that his average monthly tax liability for the

3 reasonably foreseeable future will fall below the $10,000

4 threshold stated above, then such taxpayer may petition the

5 Department for change in such taxpayer's reporting status. On

6 and after October 1, 2000, once applicable, the requirement of

7 the making of quarter monthly payments to the Department shall

8 continue until such taxpayer's average monthly liability to

9 the Department during the preceding 4 complete calendar

10 quarters (excluding the month of highest liability and the

11 month of lowest liability) is less than $19,000 or until such

12 taxpayer's average monthly liability to the Department as

13 computed for each calendar quarter of the 4 preceding complete

14 calendar quarter period is less than $20,000. However, if a

15 taxpayer can show the Department that a substantial change in

16 the taxpayer's business has occurred which causes the taxpayer

17 to anticipate that his average monthly tax liability for the

18 reasonably foreseeable future will fall below the $20,000

19 threshold stated above, then such taxpayer may petition the

20 Department for a change in such taxpayer's reporting status.

21 The Department shall change such taxpayer's reporting status

22 unless it finds that such change is seasonal in nature and not

23 likely to be long term. Quarter monthly payment status shall

24 be determined under this paragraph as if the rate reduction to

25 1.25% in Public Act 102-700 ~~this amendatory Act of the 102nd~~

26 ~~General Assembly~~ on sales tax holiday items had not occurred.

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1 For quarter monthly payments due on or after July 1, 2023 and

2 through June 30, 2024, "25% of the taxpayer's liability for

3 the same calendar month of the preceding year" shall be

4 determined as if the rate reduction to 1.25% in Public Act

5 102-700 ~~this amendatory Act of the 102nd General Assembly~~ on

6 sales tax holiday items had not occurred. Quarter monthly

7 payment status shall be determined under this paragraph as if

8 the rate reduction to 0% in Public Act 102-700 ~~this amendatory~~

9 ~~Act of the 102nd General Assembly~~ on food for human

10 consumption that is to be consumed off the premises where it is

11 sold (other than alcoholic beverages, food consisting of or

12 infused with adult use cannabis, soft drinks, and food that

13 has been prepared for immediate consumption) had not occurred.

14 For quarter monthly payments due under this paragraph on or

15 after July 1, 2023 and through June 30, 2024, "25% of the

16 taxpayer's liability for the same calendar month of the

17 preceding year" shall be determined as if the rate reduction

18 to 0% in Public Act 102-700 ~~this amendatory Act of the 102nd~~

19 ~~General Assembly~~ had not occurred. If any such quarter monthly

20 payment is not paid at the time or in the amount required by

21 this Section, then the taxpayer shall be liable for penalties

22 and interest on the difference between the minimum amount due

23 and the amount of such quarter monthly payment actually and

24 timely paid, except insofar as the taxpayer has previously

25 made payments for that month to the Department in excess of the

26 minimum payments previously due as provided in this Section.

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1 The Department shall make reasonable rules and regulations to

2 govern the quarter monthly payment amount and quarter monthly

3 payment dates for taxpayers who file on other than a calendar

4 monthly basis.

5 If any such payment provided for in this Section exceeds

6 the taxpayer's liabilities under this Act, the Retailers'

7 Occupation Tax Act, the Service Occupation Tax Act and the

8 Service Use Tax Act, as shown by an original monthly return,

9 the Department shall issue to the taxpayer a credit memorandum

10 no later than 30 days after the date of payment, which

11 memorandum may be submitted by the taxpayer to the Department

12 in payment of tax liability subsequently to be remitted by the

13 taxpayer to the Department or be assigned by the taxpayer to a

14 similar taxpayer under this Act, the Retailers' Occupation Tax

15 Act, the Service Occupation Tax Act or the Service Use Tax Act,

16 in accordance with reasonable rules and regulations to be

17 prescribed by the Department, except that if such excess

18 payment is shown on an original monthly return and is made

19 after December 31, 1986, no credit memorandum shall be issued,

20 unless requested by the taxpayer. If no such request is made,

21 the taxpayer may credit such excess payment against tax

22 liability subsequently to be remitted by the taxpayer to the

23 Department under this Act, the Retailers' Occupation Tax Act,

24 the Service Occupation Tax Act or the Service Use Tax Act, in

25 accordance with reasonable rules and regulations prescribed by

26 the Department. If the Department subsequently determines that

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1 all or any part of the credit taken was not actually due to the

2 taxpayer, the taxpayer's 2.1% or 1.75% vendor's discount shall

3 be reduced by 2.1% or 1.75% of the difference between the

4 credit taken and that actually due, and the taxpayer shall be

5 liable for penalties and interest on such difference.

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 to 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

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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 In addition, with respect to motor vehicles, watercraft,

8 aircraft, and trailers that are required to be registered with

9 an agency of this State, except as otherwise provided in this

10 Section, every retailer selling this kind of tangible personal

11 property shall file, with the Department, upon a form to be

12 prescribed and supplied by the Department, a separate return

13 for each such item of tangible personal property which the

14 retailer sells, except that if, in the same transaction, (i) a

15 retailer of aircraft, watercraft, motor vehicles or trailers

16 transfers more than one aircraft, watercraft, motor vehicle or

17 trailer to another aircraft, watercraft, motor vehicle or

18 trailer retailer for the purpose of resale or (ii) a retailer

19 of aircraft, watercraft, motor vehicles, or trailers transfers

20 more than one aircraft, watercraft, motor vehicle, or trailer

21 to a purchaser for use as a qualifying rolling stock as

22 provided in Section 3-55 of this Act, then that seller may

23 report the transfer of all the aircraft, watercraft, motor

24 vehicles or trailers involved in that transaction to the

25 Department on the same uniform invoice-transaction reporting

26 return form. For purposes of this Section, "watercraft" means

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1 a Class 2, Class 3, or Class 4 watercraft as defined in Section

2 3-2 of the Boat Registration and Safety Act, a personal

3 watercraft, or any boat equipped with an inboard motor.

4 In addition, with respect to motor vehicles, watercraft,

5 aircraft, and trailers that are required to be registered with

6 an agency of this State, every person who is engaged in the

7 business of leasing or renting such items and who, in

8 connection with such business, sells any such item to a

9 retailer for the purpose of resale is, notwithstanding any

10 other provision of this Section to the contrary, authorized to

11 meet the return-filing requirement of this Act by reporting

12 the transfer of all the aircraft, watercraft, motor vehicles,

13 or trailers transferred for resale during a month to the

14 Department on the same uniform invoice-transaction reporting

15 return form on or before the 20th of the month following the

16 month in which the transfer takes place. Notwithstanding any

17 other provision of this Act to the contrary, all returns filed

18 under this paragraph must be filed by electronic means in the

19 manner and form as required by the Department.

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

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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 2 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 and 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 2 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

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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 date 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 tax

11 that is imposed by this Act may be transmitted to the

12 Department by way of the State agency with which, or State

13 officer with whom, the tangible personal property must be

14 titled or registered (if titling or registration is required)

15 if the Department and such agency or State officer determine

16 that this procedure will expedite the processing of

17 applications for title or 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 tax receipt

23 (or a certificate of exemption if the Department is satisfied

24 that the particular sale is tax exempt) which such purchaser

25 may submit to the agency with which, or State officer with

26 whom, he must title or register the tangible personal property

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1 that is involved (if titling or registration is required) in

2 support of such purchaser's application for an Illinois

3 certificate or other evidence of title or registration to such

4 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 tax or proof of exemption made to the Department before the

16 retailer is willing to take these actions and such user has not

17 paid the tax to the retailer, such user may certify to the fact

18 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 2.1% or 1.75% discount

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1 provided for in this Section being allowed. When the user pays

2 the tax directly to the Department, he shall pay the tax in the

3 same amount and in the same form in which it would be remitted

4 if the tax had been remitted to the Department by the retailer.

5 Where a retailer collects the tax with respect to the

6 selling price of tangible personal property which he sells and

7 the purchaser thereafter returns such tangible personal

8 property and the retailer refunds the selling price thereof to

9 the purchaser, such retailer shall also refund, to the

10 purchaser, the tax so collected from the purchaser. When

11 filing his return for the period in which he refunds such tax

12 to the purchaser, the retailer may deduct the amount of the tax

13 so refunded by him to the purchaser from any other use tax

14 which such retailer may be required to pay or remit to the

15 Department, as shown by such return, if the amount of the tax

16 to be deducted was previously remitted to the Department by

17 such retailer. If the retailer has not previously remitted the

18 amount of such tax to the Department, he is entitled to no

19 deduction under this Act upon refunding such tax to the

20 purchaser.

21 Any retailer filing a return under this Section shall also

22 include (for the purpose of paying tax thereon) the total tax

23 covered by such return upon the selling price of tangible

24 personal property purchased by him at retail from a retailer,

25 but as to which the tax imposed by this Act was not collected

26 from the retailer filing such return, and such retailer shall

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1 remit the amount of such tax to the Department when filing such

2 return.

3 If experience indicates such action to be practicable, the

4 Department may prescribe and furnish a combination or joint

5 return which will enable retailers, who are required to file

6 returns hereunder and also under the Retailers' Occupation Tax

7 Act, to furnish all the return information required by both

8 Acts on the one form.

9 Where the retailer has more than one business registered

10 with the Department under separate registration under this

11 Act, such retailer may not file each return that is due as a

12 single return covering all such registered businesses, but

13 shall file separate returns for each such registered business.

14 Beginning January 1, 1990, each month the Department shall

15 pay into the State and Local Sales Tax Reform Fund, a special

16 fund in the State Treasury which is hereby created, the net

17 revenue realized for the preceding month from the 1% tax

18 imposed under this Act.

19 Beginning January 1, 1990, each month the Department shall

20 pay into the County and Mass Transit District Fund 4% of the

21 net revenue realized for the preceding month from the 6.25%

22 general rate on the selling price of tangible personal

23 property which is purchased outside Illinois at retail from a

24 retailer and which is titled or registered by an agency of this

25 State's government.

26 Beginning January 1, 1990, each month the Department shall

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1 pay into the State and Local Sales Tax Reform Fund, a special

2 fund in the State Treasury, 20% of the net revenue realized for

3 the preceding month from the 6.25% general rate on the selling

4 price of tangible personal property, other than (i) tangible

5 personal property which is purchased outside Illinois at

6 retail from a retailer and which is titled or registered by an

7 agency of this State's government and (ii) aviation fuel sold

8 on or after December 1, 2019. This exception for aviation fuel

9 only applies for so long as the revenue use requirements of 49

10 U.S.C. 47107(b) and 49 U.S.C. 47133 are binding on the State.

11 For aviation fuel sold on or after December 1, 2019, each

12 month the Department shall pay into the State Aviation Program

13 Fund 20% of the net revenue realized for the preceding month

14 from the 6.25% general rate on the selling price of aviation

15 fuel, less an amount estimated by the Department to be

16 required for refunds of the 20% portion of the tax on aviation

17 fuel under this Act, which amount shall be deposited into the

18 Aviation Fuel Sales Tax Refund Fund. The Department shall only

19 pay moneys into the State Aviation Program Fund and the

20 Aviation Fuels Sales Tax Refund Fund under this Act 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 State.

23 Beginning August 1, 2000, each month the Department shall

24 pay into the State and Local Sales Tax Reform Fund 100% of the

25 net revenue realized for the preceding month from the 1.25%

26 rate on the selling price of motor fuel and gasohol. If, in any

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1 month, the tax on sales tax holiday items, as defined in

2 Section 3-6, is imposed at the rate of 1.25%, then the

3 Department shall pay 100% of the net revenue realized for that

4 month from the 1.25% rate on the selling price of sales tax

5 holiday items into the State and Local Sales Tax Reform Fund.

6 Beginning January 1, 1990, each month the Department shall

7 pay into the Local Government Tax Fund 16% of the net revenue

8 realized for the preceding month from the 6.25% general rate

9 on the selling price of tangible personal property which is

10 purchased outside Illinois at retail from a retailer and which

11 is titled or registered by an agency of this State's

12 government.

13 Beginning October 1, 2009, each month the Department shall

14 pay into the Capital Projects Fund an amount that is equal to

15 an amount estimated by the Department to represent 80% of the

16 net revenue realized for the preceding month from the sale of

17 candy, grooming and hygiene products, and soft drinks that had

18 been taxed at a rate of 1% prior to September 1, 2009 but that

19 are now taxed at 6.25%.

20 Beginning July 1, 2011, each month the Department shall

21 pay into the Clean Air Act Permit Fund 80% of the net revenue

22 realized for the preceding month from the 6.25% general rate

23 on the selling price of sorbents used in Illinois in the

24 process of sorbent injection as used to comply with the

25 Environmental Protection Act or the federal Clean Air Act, but

26 the total payment into the Clean Air Act Permit Fund under this

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1 Act and the Retailers' Occupation Tax Act shall not exceed

2 $2,000,000 in any fiscal year.

3 Beginning July 1, 2013, each month the Department shall

4 pay into the Underground Storage Tank Fund from the proceeds

5 collected under this Act, the Service Use Tax Act, the Service

6 Occupation Tax Act, and the Retailers' Occupation Tax Act an

7 amount equal to the average monthly deficit in the Underground

8 Storage Tank Fund during the prior year, as certified annually

9 by the Illinois Environmental Protection Agency, but the total

10 payment into the Underground Storage Tank Fund under this Act,

11 the Service Use Tax Act, the Service Occupation Tax Act, and

12 the Retailers' Occupation Tax Act shall not exceed $18,000,000

13 in any State fiscal year. As used in this paragraph, the

14 "average monthly deficit" shall be equal to the difference

15 between the average monthly claims for payment by the fund and

16 the average monthly revenues deposited into the fund,

17 excluding payments made pursuant to this paragraph.

18 Beginning July 1, 2015, of the remainder of the moneys

19 received by the Department under this Act, the Service Use Tax

20 Act, the Service Occupation Tax Act, and the Retailers'

21 Occupation Tax Act, each month the Department shall deposit

22 $500,000 into the State Crime Laboratory Fund.

23 Beginning July 1, 2023, the Department shall pay into the

24 Trauma Response Fund 100% of the net revenue realized for the

25 preceding month from the 1% surcharge on the selling price of

26 firearm ammunition.

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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

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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

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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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1	`Fiscal Year`	`Total Deposit`
2	`1993`	`$0`
3	`1994`	`53,000,000`
4	`1995`	`58,000,000`
5	`1996`	`61,000,000`
6	`1997`	`64,000,000`
7	`1998`	`68,000,000`
8	`1999`	`71,000,000`
9	`2000`	`75,000,000`
10	`2001`	`80,000,000`
11	`2002`	`93,000,000`
12	`2003`	`99,000,000`
13	`2004`	`103,000,000`
14	`2005`	`108,000,000`
15	`2006`	`113,000,000`
16	`2007`	`119,000,000`
17	`2008`	`126,000,000`
18	`2009`	`132,000,000`
19	`2010`	`139,000,000`
20	`2011`	`146,000,000`
21	`2012`	`153,000,000`
22	`2013`	`161,000,000`
23	`2014`	`170,000,000`
24	`2015`	`179,000,000`
25	`2016`	`189,000,000`
26	`2017`	`199,000,000`

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1	`2018`	`210,000,000`
2	`2019`	`221,000,000`
3	`2020`	`233,000,000`
4	`2021`	`300,000,000`
5	`2022`	`300,000,000`
6	`2023`	`300,000,000`
7	`2024`	`300,000,000`
8	`2025`	`300,000,000`
9	`2026`	`300,000,000`
10	`2027`	`375,000,000`
11	`2028`	`375,000,000`
12	`2029`	`375,000,000`
13	`2030`	`375,000,000`
14	`2031`	`375,000,000`
15	`2032`	`375,000,000`
16	`2033`	`375,000,000`
17	`2034`	`375,000,000`
18	`2035`	`375,000,000`
19	`2036`	`450,000,000`
20	`and`
21	`each fiscal year`
22	`thereafter that bonds`
23	`are outstanding under`
24	`Section 13.2 of the`
25	`Metropolitan Pier and`
26	`Exposition Authority Act,`

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1 but not after fiscal year 2060.

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

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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 Fund

11 and the McCormick Place Expansion Project Fund pursuant to the

12 preceding paragraphs or in any amendments thereto hereafter

13 enacted, beginning with the receipt of the first report of

14 taxes paid by an eligible business and continuing for a

15 25-year period, the Department shall each month pay into the

16 Energy Infrastructure Fund 80% of the net revenue realized

17 from the 6.25% general rate on the selling price of

18 Illinois-mined coal that was sold to an eligible business. For

19 purposes of this paragraph, the term "eligible business" means

20 a new electric generating facility certified pursuant to

21 Section 605-332 of the Department of Commerce and Economic

22 Opportunity Law of the Civil Administrative Code of Illinois.

23 Subject to payment of amounts into the Build Illinois

24 Fund, the McCormick Place Expansion Project Fund, the Illinois

25 Tax Increment Fund, and the Energy Infrastructure Fund

26 pursuant to the preceding paragraphs or in any amendments to

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1 this Section hereafter enacted, beginning on the first day of

2 the first calendar month to occur on or after August 26, 2014

3 (the effective date of Public Act 98-1098), each month, from

4 the collections made under Section 9 of the Use Tax Act,

5 Section 9 of the Service Use Tax Act, Section 9 of the Service

6 Occupation Tax Act, and Section 3 of the Retailers' Occupation

7 Tax Act, the Department shall pay into the Tax Compliance and

8 Administration Fund, to be used, subject to appropriation, to

9 fund additional auditors and compliance personnel at the

10 Department of Revenue, an amount equal to 1/12 of 5% of 80% of

11 the cash receipts collected during the preceding fiscal year

12 by the Audit Bureau of the Department under the Use Tax Act,

13 the Service Use Tax Act, the Service Occupation Tax Act, the

14 Retailers' Occupation Tax Act, and associated local occupation

15 and use taxes administered by the Department.

16 Subject to payments of amounts into the Build Illinois

17 Fund, the McCormick Place Expansion Project Fund, the Illinois

18 Tax Increment Fund, the Energy Infrastructure Fund, and the

19 Tax Compliance and Administration Fund as provided in this

20 Section, beginning on July 1, 2018 the Department shall pay

21 each month into the Downstate Public Transportation Fund the

22 moneys required to be so paid under Section 2-3 of the

23 Downstate Public Transportation Act.

24 Subject to successful execution and delivery of a

25 public-private agreement between the public agency and private

26 entity and completion of the civic build, beginning on July 1,

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1 2023, of the remainder of the moneys received by the

2 Department under the Use Tax Act, the Service Use Tax Act, the

3 Service Occupation Tax Act, and this Act, the Department shall

4 deposit the following specified deposits in the aggregate from

5 collections under the Use Tax Act, the Service Use Tax Act, the

6 Service Occupation Tax Act, and the Retailers' Occupation Tax

7 Act, as required under Section 8.25g of the State Finance Act

8 for distribution consistent with the Public-Private

9 Partnership for Civic and Transit Infrastructure Project Act.

10 The moneys received by the Department pursuant to this Act and

11 required to be deposited into the Civic and Transit

12 Infrastructure Fund are subject to the pledge, claim, and

13 charge set forth in Section 25-55 of the Public-Private

14 Partnership for Civic and Transit Infrastructure Project Act.

15 As used in this paragraph, "civic build", "private entity",

16 "public-private agreement", and "public agency" have the

17 meanings provided in Section 25-10 of the Public-Private

18 Partnership for Civic and Transit Infrastructure Project Act.

19 Fiscal Year............................Total Deposit

20 2024....................................$200,000,000

21 2025....................................$206,000,000

22 2026....................................$212,200,000

23 2027....................................$218,500,000

24 2028....................................$225,100,000

25 2029....................................$288,700,000

26 2030....................................$298,900,000

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1 2031....................................$309,300,000

2 2032....................................$320,100,000

3 2033....................................$331,200,000

4 2034....................................$341,200,000

5 2035....................................$351,400,000

6 2036....................................$361,900,000

7 2037....................................$372,800,000

8 2038....................................$384,000,000

9 2039....................................$395,500,000

10 2040....................................$407,400,000

11 2041....................................$419,600,000

12 2042....................................$432,200,000

13 2043....................................$445,100,000

14 Beginning July 1, 2021 and until July 1, 2022, subject to

15 the payment of amounts into the State and Local Sales Tax

16 Reform Fund, the Build Illinois Fund, the McCormick Place

17 Expansion Project Fund, the Illinois Tax Increment Fund, the

18 Energy Infrastructure 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 16% of the net revenue realized from

22 the taxes imposed on motor fuel and gasohol. Beginning July 1,

23 2022 and until July 1, 2023, subject to the payment of amounts

24 into the State and Local Sales Tax Reform Fund, the Build

25 Illinois Fund, the McCormick Place Expansion Project Fund, the

26 Illinois Tax Increment Fund, the Energy Infrastructure Fund,

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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 32% of the net

4 revenue realized from the taxes imposed on motor fuel and

5 gasohol. Beginning July 1, 2023 and until July 1, 2024,

6 subject to the payment of amounts into the State and Local

7 Sales Tax Reform Fund, the Build Illinois Fund, the McCormick

8 Place Expansion Project Fund, the Illinois Tax Increment Fund,

9 the Energy Infrastructure 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 48% of the net revenue realized from

13 the taxes imposed on motor fuel and gasohol. Beginning July 1,

14 2024 and until July 1, 2025, subject to the payment of amounts

15 into the State and Local Sales Tax Reform Fund, the Build

16 Illinois Fund, the McCormick Place Expansion Project Fund, the

17 Illinois Tax Increment Fund, the Energy Infrastructure Fund,

18 and the Tax Compliance and Administration Fund as provided in

19 this Section, the Department shall pay each month into the

20 Road Fund the amount estimated to represent 64% of the net

21 revenue realized from the taxes imposed on motor fuel and

22 gasohol. Beginning on July 1, 2025, subject to the payment of

23 amounts into the State and Local Sales Tax Reform Fund, the

24 Build Illinois Fund, the McCormick Place Expansion Project

25 Fund, the Illinois Tax Increment Fund, the Energy

26 Infrastructure Fund, and the Tax Compliance and Administration

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1 Fund as provided in this Section, the Department shall pay

2 each month into the Road Fund the amount estimated to

3 represent 80% of the net revenue realized from the taxes

4 imposed on motor fuel and gasohol. As used in this paragraph

5 "motor fuel" has the meaning given to that term in Section 1.1

6 of the Motor Fuel Tax Law, and "gasohol" has the meaning given

7 to that term in Section 3-40 of this Act.

8 Of the remainder of the moneys received by the Department

9 pursuant to this Act, 75% thereof shall be paid into the State

10 Treasury and 25% shall be reserved in a special account and

11 used only for the transfer to the Common School Fund as part of

12 the monthly transfer from the General Revenue Fund in

13 accordance with Section 8a of the 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 For greater simplicity of administration, manufacturers,

26 importers and wholesalers whose products are sold at retail in

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1 Illinois by numerous retailers, and who wish to do so, may

2 assume the responsibility for accounting and paying to the

3 Department all tax accruing under this Act with respect to

4 such sales, if the retailers who are affected do not make

5 written objection to the Department to this arrangement.

6 (Source: P.A. 101-10, Article 15, Section 15-10, eff. 6-5-19;

7 101-10, Article 25, Section 25-105, eff. 6-5-19; 101-27, eff.

8 6-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19;

9 101-636, eff. 6-10-20; 102-700, Article 60, Section 60-15,

10 eff. 4-19-22; 102-700, Article 65, Section 65-5, eff. 4-19-22;

11 102-1019, eff. 1-1-23; revised 12-13-22.)

12 Section 15. The Service Use Tax Act is amended by changing

13 Sections 3-10 and 9 as follows:

14 (35 ILCS 110/3-10) (from Ch. 120, par. 439.33-10)

15 Sec. 3-10. Rate of tax. Unless otherwise provided in this

16 Section, the tax imposed by this Act is at the rate of 6.25% of

17 the selling price of tangible personal property transferred as

18 an incident to the sale of service, but, for the purpose of

19 computing this tax, in no event shall the selling price be less

20 than the cost price of the property to the serviceman.

21 Beginning on July 1, 2000 and through December 31, 2000,

22 with respect to motor fuel, as defined in Section 1.1 of the

23 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of

24 the Use Tax Act, the tax is imposed at the rate of 1.25%.

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1 With respect to gasohol, as defined in the Use Tax Act, the

2 tax imposed by this Act applies to (i) 70% of the selling price

3 of property transferred as an incident to the sale of service

4 on or after January 1, 1990, and before July 1, 2003, (ii) 80%

5 of the selling price of property transferred as an incident to

6 the sale of service on or after July 1, 2003 and on or before

7 July 1, 2017, and (iii) 100% of the selling price thereafter.

8 If, at any time, however, the tax under this Act on sales of

9 gasohol, as defined in the Use Tax Act, is imposed at the rate

10 of 1.25%, then the tax imposed by this Act applies to 100% of

11 the proceeds of sales of gasohol made during that time.

12 With respect to majority blended ethanol fuel, as defined

13 in the Use Tax Act, the tax imposed by this Act does not apply

14 to the selling price of property transferred as an incident to

15 the sale of service on or after July 1, 2003 and on or before

16 December 31, 2023 but applies to 100% of the selling price

17 thereafter.

18 With respect to biodiesel blends, as defined in the Use

19 Tax Act, with no less than 1% and no more than 10% biodiesel,

20 the tax imposed by this Act applies to (i) 80% of the selling

21 price of property transferred as an incident to the sale of

22 service on or after July 1, 2003 and on or before December 31,

23 2018 and (ii) 100% of the proceeds of the selling price after

24 December 31, 2018 and before January 1, 2024. On and after

25 January 1, 2024 and on or before December 31, 2030, the

26 taxation of biodiesel, renewable diesel, and biodiesel blends

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1 shall be as provided in Section 3-5.1 of the Use Tax Act. If,

2 at any time, however, the tax under this Act on sales of

3 biodiesel blends, as defined in the Use Tax Act, with no less

4 than 1% and no more than 10% biodiesel is imposed at the rate

5 of 1.25%, then the tax imposed by this Act applies to 100% of

6 the proceeds of sales of biodiesel blends with no less than 1%

7 and no more than 10% biodiesel made during that time.

8 With respect to biodiesel, as defined in the Use Tax Act,

9 and biodiesel blends, as defined in the Use Tax Act, with more

10 than 10% but no more than 99% biodiesel, the tax imposed by

11 this Act does not apply to the proceeds of the selling price of

12 property transferred as an incident to the sale of service on

13 or after July 1, 2003 and on or before December 31, 2023. On

14 and after January 1, 2024 and on or before December 31, 2030,

15 the taxation of biodiesel, renewable diesel, and biodiesel

16 blends shall be as provided in Section 3-5.1 of the Use Tax

17 Act.

18 At the election of any registered serviceman made for each

19 fiscal year, sales of service in which the aggregate annual

20 cost price of tangible personal property transferred as an

21 incident to the sales of service is less than 35%, or 75% in

22 the case of servicemen transferring prescription drugs or

23 servicemen engaged in graphic arts production, of the

24 aggregate annual total gross receipts from all sales of

25 service, the tax imposed by this Act shall be based on the

26 serviceman's cost price of the tangible personal property

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1 transferred as an incident to the sale of those services.

2 Until July 1, 2022 and beginning again on July 1, 2023, the

3 tax shall be imposed at the rate of 1% on food prepared for

4 immediate consumption and transferred incident to a sale of

5 service subject to this Act or the Service Occupation Tax Act

6 by an entity licensed under the Hospital Licensing Act, the

7 Nursing Home Care Act, the Assisted Living and Shared Housing

8 Act, the ID/DD Community Care Act, the MC/DD Act, the

9 Specialized Mental Health Rehabilitation Act of 2013, or the

10 Child Care Act of 1969, or an entity that holds a permit issued

11 pursuant to the Life Care Facilities Act. Until July 1, 2022

12 and beginning again on July 1, 2023, the tax shall also be

13 imposed at the rate of 1% on food for human consumption that is

14 to be consumed off the premises where it is sold (other than

15 alcoholic beverages, food consisting of or infused with adult

16 use cannabis, soft drinks, and food that has been prepared for

17 immediate consumption and is not otherwise included in this

18 paragraph).

19 Beginning on July 1, 2022 and until July 1, 2023, the tax

20 shall be imposed at the rate of 0% on food prepared for

21 immediate consumption and transferred incident to a sale of

22 service subject to this Act or the Service Occupation Tax Act

23 by an entity licensed under the Hospital Licensing Act, the

24 Nursing Home Care Act, the Assisted Living and Shared Housing

25 Act, the ID/DD Community Care Act, the MC/DD Act, the

26 Specialized Mental Health Rehabilitation Act of 2013, or the

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1 Child Care Act of 1969, or an entity that holds a permit issued

2 pursuant to the Life Care Facilities Act. Beginning on July 1,

3 2022 and until July 1, 2023, the tax shall also be imposed at

4 the rate of 0% 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 and is not otherwise included in this

9 paragraph).

10 The tax shall also be imposed at the rate of 1% on

11 prescription and nonprescription medicines, drugs, medical

12 appliances, products classified as Class III medical devices

13 by the United States Food and Drug Administration that are

14 used for cancer treatment pursuant to a prescription, as well

15 as any accessories and components related to those devices,

16 modifications to a motor vehicle for the purpose of rendering

17 it usable by a person with a disability, and insulin, blood

18 sugar testing materials, syringes, and needles used by human

19 diabetics. For the purposes of this Section, until September

20 1, 2009: the term "soft drinks" means any complete, finished,

21 ready-to-use, non-alcoholic drink, whether carbonated or not,

22 including, but not limited to, soda water, cola, fruit juice,

23 vegetable juice, carbonated water, and all other preparations

24 commonly known as soft drinks of whatever kind or description

25 that are contained in any closed or sealed bottle, can,

26 carton, or container, regardless of size; but "soft drinks"

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1 does not include coffee, tea, non-carbonated water, infant

2 formula, milk or milk products as defined in the Grade A

3 Pasteurized Milk and Milk Products Act, or drinks containing

4 50% or more natural fruit or vegetable juice.

5 Notwithstanding any other provisions of this Act,

6 beginning September 1, 2009, "soft drinks" means non-alcoholic

7 beverages that contain natural or artificial sweeteners. "Soft

8 drinks" does ~~do~~ not include beverages that contain milk or

9 milk products, soy, rice or similar milk substitutes, or

10 greater than 50% of vegetable or fruit juice by volume.

11 Until August 1, 2009, and notwithstanding any other

12 provisions of this Act, "food for human consumption that is to

13 be consumed off the premises where it is sold" includes all

14 food sold through a vending machine, except soft drinks and

15 food products that are dispensed hot from a vending machine,

16 regardless of the location of the vending machine. Beginning

17 August 1, 2009, and notwithstanding any other provisions of

18 this Act, "food for human consumption that is to be consumed

19 off the premises where it is sold" includes all food sold

20 through a vending machine, except soft drinks, candy, and food

21 products that are dispensed hot from a vending machine,

22 regardless of the location of the vending machine.

23 Notwithstanding any other provisions of this Act,

24 beginning September 1, 2009, "food for human consumption that

25 is to be consumed off the premises where it is sold" does not

26 include candy. For purposes of this Section, "candy" means a

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1 preparation of sugar, honey, or other natural or artificial

2 sweeteners in combination with chocolate, fruits, nuts or

3 other ingredients or flavorings in the form of bars, drops, or

4 pieces. "Candy" does not include any preparation that contains

5 flour or requires refrigeration.

6 Notwithstanding any other provisions of this Act,

7 beginning September 1, 2009, "nonprescription medicines and

8 drugs" does not include grooming and hygiene products. For

9 purposes of this Section, "grooming and hygiene products"

10 includes, but is not limited to, soaps and cleaning solutions,

11 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan

12 lotions and screens, unless those products are available by

13 prescription only, regardless of whether the products meet the

14 definition of "over-the-counter-drugs". For the purposes of

15 this paragraph, "over-the-counter-drug" means a drug for human

16 use that contains a label that identifies the product as a drug

17 as required by 21 CFR ~~C.F.R. �~~ 201.66. The

18 "over-the-counter-drug" label includes:

19 (A) a ~~A~~ "Drug Facts" panel; or

20 (B) a ~~A~~ statement of the "active ingredient(s)" with a

21 list of those ingredients contained in the compound,

22 substance or preparation.

23 Beginning on January 1, 2014 (the effective date of Public

24 Act 98-122), "prescription and nonprescription medicines and

25 drugs" includes medical cannabis purchased from a registered

26 dispensing organization under the Compassionate Use of Medical

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1 Cannabis Program Act.

2 As used in this Section, "adult use cannabis" means

3 cannabis subject to tax under the Cannabis Cultivation

4 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law

5 and does not include cannabis subject to tax under the

6 Compassionate Use of Medical Cannabis Program Act.

7 Beginning July 1, 2023, in addition to all other rates of

8 tax imposed under this Act, a surcharge of 1% is imposed on the

9 selling price of firearm ammunition. "Firearm ammunition" has

10 the meaning given to that term under Section 31A-0.1 of the

11 Criminal Code of 2012.

12 If the property that is acquired from a serviceman is

13 acquired outside Illinois and used outside Illinois before

14 being brought to Illinois for use here and is taxable under

15 this Act, the "selling price" on which the tax is computed

16 shall be reduced by an amount that represents a reasonable

17 allowance for depreciation for the period of prior

18 out-of-state use.

19 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;

20 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article

21 20, Section 20-10, eff. 4-19-22; 102-700, Article 60, Section

22 60-20, eff. 4-19-22; revised 6-1-22.)

23 (35 ILCS 110/9) (from Ch. 120, par. 439.39)

24 Sec. 9. Each serviceman required or authorized to collect

25 the tax herein imposed shall pay to the Department the amount

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1 of such tax (except as otherwise provided) at the time when he

2 is required to file his return for the period during which such

3 tax was collected, less a discount of 2.1% prior to January 1,

4 1990 and 1.75% on and after January 1, 1990, or $5 per calendar

5 year, whichever is greater, which is allowed to reimburse the

6 serviceman for expenses incurred in collecting the tax,

7 keeping records, preparing and filing returns, remitting the

8 tax and supplying data to the Department on request. When

9 determining the discount allowed under this Section,

10 servicemen shall include the amount of tax that would have

11 been due at the 1% rate but for the 0% rate imposed under this

12 amendatory Act of the 102nd General Assembly. The discount

13 under this Section is not allowed for the 1.25% portion of

14 taxes paid on aviation fuel that is subject to the revenue use

15 requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133. The

16 discount allowed under this Section is allowed only for

17 returns that are filed in the manner required by this Act. The

18 Department may disallow the discount for servicemen whose

19 certificate of registration is revoked at the time the return

20 is filed, but only if the Department's decision to revoke the

21 certificate of registration has become final. A serviceman

22 need not remit that part of any tax collected by him to the

23 extent that he is required to pay and does pay the tax imposed

24 by the Service Occupation Tax Act with respect to his sale of

25 service involving the incidental transfer by him of the same

26 property.

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1 Except as provided hereinafter in this Section, on or

2 before the twentieth day of each calendar month, such

3 serviceman shall file a return for the preceding calendar

4 month in accordance with reasonable Rules and Regulations to

5 be promulgated by the Department. Such return shall be filed

6 on a form prescribed by the Department and shall contain such

7 information as the Department may reasonably require. The

8 return shall include the gross receipts which were received

9 during the preceding calendar month or quarter on the

10 following items upon which tax would have been due but for the

11 0% rate imposed under this amendatory Act of the 102nd General

12 Assembly: (i) 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 (ii) food prepared for immediate

17 consumption and transferred incident to a sale of service

18 subject to this Act or the Service Occupation Tax Act by an

19 entity licensed under the Hospital Licensing Act, the Nursing

20 Home Care Act, the Assisted Living and Shared Housing Act, the

21 ID/DD Community Care Act, the MC/DD Act, the Specialized

22 Mental Health Rehabilitation Act of 2013, or the Child Care

23 Act of 1969, or an entity that holds a permit issued pursuant

24 to the Life Care Facilities Act. The return shall also include

25 the amount of tax that would have been due on the items listed

26 in the previous sentence but for the 0% rate imposed under this

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1 amendatory Act of the 102nd General Assembly.

2 On and after January 1, 2018, with respect to servicemen

3 whose annual gross receipts average $20,000 or more, all

4 returns required to be filed pursuant to this Act shall be

5 filed electronically. Servicemen who demonstrate that they do

6 not have access to the Internet or demonstrate hardship in

7 filing electronically may petition the Department to waive the

8 electronic filing requirement.

9 The Department may require returns to be filed on a

10 quarterly basis. If so required, a return for each calendar

11 quarter shall be filed on or before the twentieth day of the

12 calendar month following the end of such calendar quarter. The

13 taxpayer shall also file a return with the Department for each

14 of the first two months of each calendar quarter, on or before

15 the twentieth day of the following calendar month, stating:

16 1. The name of the seller;

17 2. The address of the principal place of business from

18 which he engages in business as a serviceman in this

19 State;

20 3. The total amount of taxable receipts received by

21 him during the preceding calendar month, including

22 receipts from charge and time sales, but less all

23 deductions allowed by law;

24 4. The amount of credit provided in Section 2d of this

25 Act;

26 5. The amount of tax due;

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1 5-5. The signature of the taxpayer; and

2 6. Such other reasonable information as the Department

3 may require.

4 Each serviceman required or authorized to collect the tax

5 imposed by this Act on aviation fuel transferred as an

6 incident of a sale of service in this State during the

7 preceding calendar month shall, instead of reporting and

8 paying tax on aviation fuel as otherwise required by this

9 Section, report and pay such tax on a separate aviation fuel

10 tax return. The requirements related to the return shall be as

11 otherwise provided in this Section. Notwithstanding any other

12 provisions of this Act to the contrary, servicemen collecting

13 tax on aviation fuel shall file all aviation fuel tax returns

14 and shall make all aviation fuel tax payments by electronic

15 means in the manner and form required by the Department. For

16 purposes of this Section, "aviation fuel" means jet fuel and

17 aviation gasoline.

18 If a taxpayer fails to sign a return within 30 days after

19 the proper notice and demand for signature by the Department,

20 the return shall be considered valid and any amount shown to be

21 due on the return shall be deemed assessed.

22 Notwithstanding any other provision of this Act to the

23 contrary, servicemen subject to tax on cannabis shall file all

24 cannabis tax returns and shall make all cannabis tax payments

25 by electronic means in the manner and form required by the

26 Department.

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1 Beginning October 1, 1993, a taxpayer who has an average

2 monthly tax liability of $150,000 or more shall make all

3 payments required by rules of the Department by electronic

4 funds transfer. Beginning October 1, 1994, a taxpayer who has

5 an average monthly tax liability of $100,000 or more shall

6 make all payments required by rules of the Department by

7 electronic funds transfer. Beginning October 1, 1995, a

8 taxpayer who has an average monthly tax liability of $50,000

9 or more shall make all payments required by rules of the

10 Department by electronic funds transfer. Beginning October 1,

11 2000, a taxpayer who has an annual tax liability of $200,000 or

12 more shall make all payments required by rules of the

13 Department by electronic funds transfer. The term "annual tax

14 liability" shall be the sum of the taxpayer's liabilities

15 under this Act, and under all other State and local occupation

16 and use tax laws administered by the Department, for the

17 immediately preceding calendar year. The term "average monthly

18 tax liability" means the sum of the taxpayer's liabilities

19 under this Act, and under all other State and local occupation

20 and use tax laws administered by the Department, for the

21 immediately preceding calendar year divided by 12. Beginning

22 on October 1, 2002, a taxpayer who has a tax liability in the

23 amount set forth in subsection (b) of Section 2505-210 of the

24 Department of Revenue Law shall make all payments required by

25 rules of the Department by electronic funds transfer.

26 Before August 1 of each year beginning in 1993, the

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1 Department shall notify all taxpayers required to make

2 payments by electronic funds transfer. All taxpayers required

3 to make payments by electronic funds transfer shall make those

4 payments for a minimum of one year beginning on October 1.

5 Any taxpayer not required to make payments by electronic

6 funds transfer may make payments by electronic funds transfer

7 with the permission of the Department.

8 All taxpayers required to make payment by electronic funds

9 transfer and any taxpayers authorized to voluntarily make

10 payments by electronic funds transfer shall make those

11 payments in the manner authorized by the Department.

12 The Department shall adopt such rules as are necessary to

13 effectuate a program of electronic funds transfer and the

14 requirements of this Section.

15 If the serviceman is otherwise required to file a monthly

16 return and if the serviceman's average monthly tax liability

17 to the Department does not exceed $200, the Department may

18 authorize his returns to be filed on a quarter annual basis,

19 with the return for January, February and March of a given year

20 being due by April 20 of such year; with the return for April,

21 May and June of a given year being due by July 20 of such year;

22 with the return for July, August and September of a given year

23 being due by October 20 of such year, and with the return for

24 October, November and December of a given year being due by

25 January 20 of the following year.

26 If the serviceman is otherwise required to file a monthly

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1 or quarterly return and if the serviceman's average monthly

2 tax liability to the Department does not exceed $50, the

3 Department may authorize his returns to be filed on an annual

4 basis, with the return for a given year being due by January 20

5 of the following year.

6 Such quarter annual and annual returns, as to form and

7 substance, shall be subject to the same requirements as

8 monthly returns.

9 Notwithstanding any other provision in this Act concerning

10 the time within which a serviceman may file his return, in the

11 case of any serviceman who ceases to engage in a kind of

12 business which makes him responsible for filing returns under

13 this Act, such serviceman shall file a final return under this

14 Act with the Department not more than 1 month after

15 discontinuing such business.

16 Where a serviceman collects the tax with respect to the

17 selling price of property which he sells and the purchaser

18 thereafter returns such property and the serviceman refunds

19 the selling price thereof to the purchaser, such serviceman

20 shall also refund, to the purchaser, the tax so collected from

21 the purchaser. When filing his return for the period in which

22 he refunds such tax to the purchaser, the serviceman may

23 deduct the amount of the tax so refunded by him to the

24 purchaser from any other Service Use Tax, Service Occupation

25 Tax, retailers' occupation tax or use tax which such

26 serviceman may be required to pay or remit to the Department,

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1 as shown by such return, provided that the amount of the tax to

2 be deducted shall previously have been remitted to the

3 Department by such serviceman. If the serviceman shall not

4 previously have remitted the amount of such tax to the

5 Department, he shall be entitled to no deduction hereunder

6 upon refunding such tax to the purchaser.

7 Any serviceman filing a return hereunder shall also

8 include the total tax upon the selling price of tangible

9 personal property purchased for use by him as an incident to a

10 sale of service, and such serviceman shall remit the amount of

11 such tax to the Department when filing such return.

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 Service Occupation Tax

16 Act, to furnish all the return information required by both

17 Acts on the one form.

18 Where the serviceman has more than one business registered

19 with the Department under separate registration hereunder,

20 such serviceman shall not file each return that is due as a

21 single return covering all such registered businesses, but

22 shall file separate returns for each such registered business.

23 Beginning January 1, 1990, each month the Department shall

24 pay into the State and Local Tax Reform Fund, a special fund in

25 the State Treasury, the net revenue realized for the preceding

26 month from the 1% tax imposed under this Act.

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1 Beginning January 1, 1990, each month the Department shall

2 pay into the State and Local Sales Tax Reform Fund 20% of the

3 net revenue realized for the preceding month from the 6.25%

4 general rate on transfers of tangible personal property, other

5 than (i) tangible personal property which is purchased outside

6 Illinois at retail from a retailer and which is titled or

7 registered by an agency of this State's government and (ii)

8 aviation fuel sold on or after December 1, 2019. This

9 exception for aviation fuel only applies for so long as the

10 revenue use requirements of 49 U.S.C. 47107(b) and 49 U.S.C.

11 47133 are binding on the State.

12 For aviation fuel sold on or after December 1, 2019, each

13 month the Department shall pay into the State Aviation Program

14 Fund 20% of the net revenue realized for the preceding month

15 from the 6.25% general rate on the selling price of aviation

16 fuel, less an amount estimated by the Department to be

17 required for refunds of the 20% portion of the tax on aviation

18 fuel under this Act, which amount shall be deposited into the

19 Aviation Fuel Sales Tax Refund Fund. The Department shall only

20 pay moneys into the State Aviation Program Fund and the

21 Aviation Fuel Sales Tax Refund Fund under this Act for so long

22 as the revenue use requirements of 49 U.S.C. 47107(b) and 49

23 U.S.C. 47133 are binding on the State.

24 Beginning August 1, 2000, each month the Department shall

25 pay into the State and Local Sales Tax Reform Fund 100% of the

26 net revenue realized for the preceding month from the 1.25%

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1 rate on the selling price of motor fuel and gasohol.

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, 2013, each month the Department shall

10 pay into the Underground Storage Tank Fund from the proceeds

11 collected under this Act, the Use Tax Act, the Service

12 Occupation Tax Act, and the Retailers' Occupation Tax Act an

13 amount equal to the average monthly deficit in the Underground

14 Storage Tank Fund during the prior year, as certified annually

15 by the Illinois Environmental Protection Agency, but the total

16 payment into the Underground Storage Tank Fund under this Act,

17 the Use Tax Act, the Service Occupation Tax Act, and the

18 Retailers' Occupation Tax Act shall not exceed $18,000,000 in

19 any State fiscal year. As used in this paragraph, the "average

20 monthly deficit" shall be equal to the difference between the

21 average monthly claims for payment by the fund and the average

22 monthly revenues deposited into the fund, excluding payments

23 made pursuant to this paragraph.

24 Beginning July 1, 2015, of the remainder of the moneys

25 received by the Department under the Use Tax Act, this Act, the

26 Service Occupation Tax Act, and the Retailers' Occupation Tax

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1 Act, each month the Department shall deposit $500,000 into the

2 State Crime Laboratory Fund.

3 Beginning July 1, 2023, the Department shall pay into the

4 Trauma Response Fund 100% of the net revenue realized for the

5 preceding month from the 1% surcharge on the selling price of

6 firearm ammunition.

7 Of the remainder of the moneys received by the Department

8 pursuant to this Act, (a) 1.75% thereof shall be paid into the

9 Build Illinois Fund and (b) prior to July 1, 1989, 2.2% and on

10 and after July 1, 1989, 3.8% thereof shall be paid into the

11 Build Illinois Fund; provided, however, that if in any fiscal

12 year the sum of (1) the aggregate of 2.2% or 3.8%, as the case

13 may be, of the moneys received by the Department and required

14 to be paid into the Build Illinois Fund pursuant to Section 3

15 of the Retailers' Occupation Tax Act, Section 9 of the Use Tax

16 Act, Section 9 of the Service Use Tax Act, and Section 9 of the

17 Service Occupation Tax Act, such Acts being hereinafter called

18 the "Tax Acts" and such aggregate of 2.2% or 3.8%, as the case

19 may be, of moneys being hereinafter called the "Tax Act

20 Amount", and (2) the amount transferred to the Build Illinois

21 Fund from the State and Local Sales Tax Reform Fund shall be

22 less than the Annual Specified Amount (as defined in Section 3

23 of the Retailers' Occupation Tax Act), 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 if on the last

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1 business day of any month the sum of (1) the Tax Act Amount

2 required to be deposited into the Build Illinois Bond Account

3 in the Build Illinois Fund during such month and (2) the amount

4 transferred during such month to the Build Illinois Fund from

5 the State and Local Sales Tax Reform Fund shall have been less

6 than 1/12 of the Annual Specified Amount, an amount equal to

7 the difference shall be immediately paid into the Build

8 Illinois Fund from other moneys received by the Department

9 pursuant to the Tax Acts; and, further provided, that in no

10 event shall the payments required under the preceding proviso

11 result in aggregate payments into the Build Illinois Fund

12 pursuant to this clause (b) for any fiscal year in excess of

13 the greater of (i) the Tax Act Amount or (ii) the Annual

14 Specified Amount for such fiscal year; and, further provided,

15 that the amounts payable into the Build Illinois Fund under

16 this clause (b) shall be payable only until such time as the

17 aggregate amount on deposit under each trust indenture

18 securing Bonds issued and outstanding pursuant to the Build

19 Illinois Bond Act is sufficient, taking into account any

20 future investment income, to fully provide, in accordance with

21 such indenture, for the defeasance of or the payment of the

22 principal of, premium, if any, and interest on the Bonds

23 secured by such indenture and on any Bonds expected to be

24 issued thereafter and all fees and costs payable with respect

25 thereto, all as certified by the Director of the Bureau of the

26 Budget (now Governor's Office of Management and Budget). If on

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1 the last business day of any month in which Bonds are

2 outstanding pursuant to the Build Illinois Bond Act, the

3 aggregate of the moneys deposited in the Build Illinois Bond

4 Account in the Build Illinois Fund in such month shall be less

5 than the amount required to be transferred in such month from

6 the Build Illinois Bond Account to the Build Illinois Bond

7 Retirement and Interest Fund pursuant to Section 13 of the

8 Build Illinois Bond Act, an amount equal to such deficiency

9 shall be immediately paid from other moneys received by the

10 Department pursuant to the Tax Acts to the Build Illinois

11 Fund; provided, however, that any amounts paid to the Build

12 Illinois Fund in any fiscal year pursuant to this sentence

13 shall be deemed to constitute payments pursuant to clause (b)

14 of the preceding sentence and shall reduce the amount

15 otherwise payable for such fiscal year pursuant to clause (b)

16 of the preceding sentence. The moneys received by the

17 Department pursuant to this Act and required to be deposited

18 into the Build Illinois Fund are subject to the pledge, claim

19 and charge set forth in Section 12 of the Build Illinois Bond

20 Act.

21 Subject to payment of amounts into the Build Illinois Fund

22 as provided in the preceding paragraph or in any amendment

23 thereto hereafter enacted, the following specified monthly

24 installment of the amount requested in the certificate of the

25 Chairman of the Metropolitan Pier and Exposition Authority

26 provided under Section 8.25f of the State Finance Act, but not

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1 in excess of the sums designated as "Total Deposit", shall be

2 deposited in the aggregate from collections under Section 9 of

3 the Use Tax Act, Section 9 of the Service Use Tax Act, Section

4 9 of the Service Occupation Tax Act, and Section 3 of the

5 Retailers' Occupation Tax Act into the McCormick Place

6 Expansion Project Fund in the specified fiscal years.

7	`Fiscal Year`	`Total Deposit`
8	`1993`	`$0`
9	`1994`	`53,000,000`
10	`1995`	`58,000,000`
11	`1996`	`61,000,000`
12	`1997`	`64,000,000`
13	`1998`	`68,000,000`
14	`1999`	`71,000,000`
15	`2000`	`75,000,000`
16	`2001`	`80,000,000`
17	`2002`	`93,000,000`
18	`2003`	`99,000,000`
19	`2004`	`103,000,000`
20	`2005`	`108,000,000`
21	`2006`	`113,000,000`
22	`2007`	`119,000,000`
23	`2008`	`126,000,000`
24	`2009`	`132,000,000`
25	`2010`	`139,000,000`

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1	`2011`	`146,000,000`
2	`2012`	`153,000,000`
3	`2013`	`161,000,000`
4	`2014`	`170,000,000`
5	`2015`	`179,000,000`
6	`2016`	`189,000,000`
7	`2017`	`199,000,000`
8	`2018`	`210,000,000`
9	`2019`	`221,000,000`
10	`2020`	`233,000,000`
11	`2021`	`300,000,000`
12	`2022`	`300,000,000`
13	`2023`	`300,000,000`
14	`2024`	`300,000,000`
15	`2025`	`300,000,000`
16	`2026`	`300,000,000`
17	`2027`	`375,000,000`
18	`2028`	`375,000,000`
19	`2029`	`375,000,000`
20	`2030`	`375,000,000`
21	`2031`	`375,000,000`
22	`2032`	`375,000,000`
23	`2033`	`375,000,000`
24	`2034`	`375,000,000`
25	`2035`	`375,000,000`
26	`2036`	`450,000,000`

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1		`and`
2		`each fiscal year`
3		`thereafter that bonds`
4		`are outstanding under`
5		`Section 13.2 of the`
6		`Metropolitan Pier and`
7		`Exposition Authority Act,`
8		`but not after fiscal year 2060.`

9 Beginning July 20, 1993 and in each month of each fiscal

10 year thereafter, one-eighth of the amount requested in the

11 certificate of the Chairman of the Metropolitan Pier and

12 Exposition Authority for that fiscal year, less the amount

13 deposited into the McCormick Place Expansion Project Fund by

14 the State Treasurer in the respective month under subsection

15 (g) of Section 13 of the Metropolitan Pier and Exposition

16 Authority Act, plus cumulative deficiencies in the deposits

17 required under this Section for previous months and years,

18 shall be deposited into the McCormick Place Expansion Project

19 Fund, until the full amount requested for the fiscal year, but

20 not in excess of the amount specified above as "Total

21 Deposit", has been deposited.

22 Subject to payment of amounts into the Capital Projects

23 Fund, the Clean Air Act Permit Fund, the Build Illinois Fund,

24 and the McCormick Place Expansion Project Fund pursuant to the

25 preceding paragraphs or in any amendments thereto hereafter

26 enacted, for aviation fuel sold on or after December 1, 2019,

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1 the Department shall each month deposit into the Aviation Fuel

2 Sales Tax Refund Fund an amount estimated by the Department to

3 be required for refunds of the 80% portion of the tax on

4 aviation fuel under this Act. The Department shall only

5 deposit moneys into the Aviation Fuel Sales Tax Refund Fund

6 under this paragraph for so long as the revenue use

7 requirements of 49 U.S.C. 47107(b) and 49 U.S.C. 47133 are

8 binding on the State.

9 Subject to payment of amounts into the Build Illinois Fund

10 and the McCormick Place Expansion Project Fund pursuant to the

11 preceding paragraphs or in any amendments thereto hereafter

12 enacted, beginning July 1, 1993 and ending on September 30,

13 2013, the Department shall each month pay into the Illinois

14 Tax Increment Fund 0.27% of 80% of the net revenue realized for

15 the preceding month from the 6.25% general rate on the selling

16 price of tangible personal property.

17 Subject to payment of amounts into the Build Illinois Fund

18 and the McCormick Place Expansion Project Fund pursuant to the

19 preceding paragraphs or in any amendments thereto hereafter

20 enacted, beginning with the receipt of the first report of

21 taxes paid by an eligible business and continuing for a

22 25-year period, the Department shall each month pay into the

23 Energy Infrastructure Fund 80% of the net revenue realized

24 from the 6.25% general rate on the selling price of

25 Illinois-mined coal that was sold to an eligible business. For

26 purposes of this paragraph, the term "eligible business" means

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1 a new electric generating facility certified pursuant to

2 Section 605-332 of the Department of Commerce and Economic

3 Opportunity Law of the Civil Administrative Code of Illinois.

4 Subject to payment of amounts into the Build Illinois

5 Fund, the McCormick Place Expansion Project Fund, the Illinois

6 Tax Increment Fund, and the Energy Infrastructure Fund

7 pursuant to the preceding paragraphs or in any amendments to

8 this Section hereafter enacted, beginning on the first day of

9 the first calendar month to occur on or after August 26, 2014

10 (the effective date of Public Act 98-1098), each month, from

11 the collections made under Section 9 of the Use Tax Act,

12 Section 9 of the Service Use Tax Act, Section 9 of the Service

13 Occupation Tax Act, and Section 3 of the Retailers' Occupation

14 Tax Act, the Department shall pay into the Tax Compliance and

15 Administration Fund, to be used, subject to appropriation, to

16 fund additional auditors and compliance personnel at the

17 Department of Revenue, an amount equal to 1/12 of 5% of 80% of

18 the cash receipts collected during the preceding fiscal year

19 by the Audit Bureau of the Department under the Use Tax Act,

20 the Service Use Tax Act, the Service Occupation Tax Act, the

21 Retailers' Occupation Tax Act, and associated local occupation

22 and use taxes administered by the Department.

23 Subject to payments of amounts into the Build Illinois

24 Fund, the McCormick Place Expansion Project Fund, the Illinois

25 Tax Increment Fund, the Energy Infrastructure Fund, and the

26 Tax Compliance and Administration Fund as provided in this

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1 Section, beginning on July 1, 2018 the Department shall pay

2 each month into the Downstate Public Transportation Fund the

3 moneys required to be so paid under Section 2-3 of the

4 Downstate Public Transportation Act.

5 Subject to successful execution and delivery of a

6 public-private agreement between the public agency and private

7 entity and completion of the civic build, beginning on July 1,

8 2023, of the remainder of the moneys received by the

9 Department under the Use Tax Act, the Service Use Tax Act, the

10 Service Occupation Tax Act, and this Act, the Department shall

11 deposit the following specified deposits in the aggregate from

12 collections under the Use Tax Act, the Service Use Tax Act, the

13 Service Occupation Tax Act, and the Retailers' Occupation Tax

14 Act, as required under Section 8.25g of the State Finance Act

15 for distribution consistent with the Public-Private

16 Partnership for Civic and Transit Infrastructure Project Act.

17 The moneys received by the Department pursuant to this Act and

18 required to be deposited into the Civic and Transit

19 Infrastructure Fund are subject to the pledge, claim, and

20 charge set forth in Section 25-55 of the Public-Private

21 Partnership for Civic and Transit Infrastructure Project Act.

22 As used in this paragraph, "civic build", "private entity",

23 "public-private agreement", and "public agency" have the

24 meanings provided in Section 25-10 of the Public-Private

25 Partnership for Civic and Transit Infrastructure Project Act.

26 Fiscal Year............................Total Deposit

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1 2024....................................$200,000,000

2 2025....................................$206,000,000

3 2026....................................$212,200,000

4 2027....................................$218,500,000

5 2028....................................$225,100,000

6 2029....................................$288,700,000

7 2030....................................$298,900,000

8 2031....................................$309,300,000

9 2032....................................$320,100,000

10 2033....................................$331,200,000

11 2034....................................$341,200,000

12 2035....................................$351,400,000

13 2036....................................$361,900,000

14 2037....................................$372,800,000

15 2038....................................$384,000,000

16 2039....................................$395,500,000

17 2040....................................$407,400,000

18 2041....................................$419,600,000

19 2042....................................$432,200,000

20 2043....................................$445,100,000

21 Beginning July 1, 2021 and until July 1, 2022, subject to

22 the payment of amounts into the State and Local Sales Tax

23 Reform Fund, the Build Illinois Fund, the McCormick Place

24 Expansion Project Fund, the Illinois Tax Increment Fund, the

25 Energy Infrastructure Fund, and the Tax Compliance and

26 Administration Fund as provided in this Section, the

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1 Department shall pay each month into the Road Fund the amount

2 estimated to represent 16% of the net revenue realized from

3 the taxes imposed on motor fuel and gasohol. Beginning July 1,

4 2022 and until July 1, 2023, subject to the payment of amounts

5 into the State and Local Sales Tax Reform Fund, the Build

6 Illinois Fund, the McCormick Place Expansion Project Fund, the

7 Illinois Tax Increment Fund, the Energy Infrastructure Fund,

8 and the Tax Compliance and Administration Fund as provided in

9 this Section, the Department shall pay each month into the

10 Road Fund the amount estimated to represent 32% of the net

11 revenue realized from the taxes imposed on motor fuel and

12 gasohol. Beginning July 1, 2023 and until July 1, 2024,

13 subject to the payment of amounts into the State and Local

14 Sales Tax Reform Fund, the Build Illinois Fund, the McCormick

15 Place Expansion Project Fund, the Illinois Tax Increment Fund,

16 the Energy Infrastructure Fund, and the Tax Compliance and

17 Administration Fund as provided in this Section, the

18 Department shall pay each month into the Road Fund the amount

19 estimated to represent 48% of the net revenue realized from

20 the taxes imposed on motor fuel and gasohol. Beginning July 1,

21 2024 and until July 1, 2025, subject to the payment of amounts

22 into the State and Local Sales Tax Reform Fund, the Build

23 Illinois Fund, the McCormick Place Expansion Project Fund, the

24 Illinois Tax Increment Fund, the Energy Infrastructure Fund,

25 and the Tax Compliance and Administration Fund as provided in

26 this Section, the Department shall pay each month into the

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1 Road Fund the amount estimated to represent 64% of the net

2 revenue realized from the taxes imposed on motor fuel and

3 gasohol. Beginning on July 1, 2025, subject to the payment of

4 amounts into the State and Local Sales Tax Reform Fund, the

5 Build Illinois Fund, the McCormick Place Expansion Project

6 Fund, the Illinois Tax Increment Fund, the Energy

7 Infrastructure Fund, and the Tax Compliance and Administration

8 Fund as provided in this Section, the Department shall pay

9 each month into the Road Fund the amount estimated to

10 represent 80% of the net revenue realized from the taxes

11 imposed on motor fuel and gasohol. As used in this paragraph

12 "motor fuel" has the meaning given to that term in Section 1.1

13 of the Motor Fuel Tax Law, and "gasohol" has the meaning given

14 to that term in Section 3-40 of the Use Tax Act.

15 Of the remainder of the moneys received by the Department

16 pursuant to this Act, 75% thereof shall be paid into the

17 General Revenue Fund of the State Treasury and 25% shall be

18 reserved in a special account and used only for the transfer to

19 the Common School Fund as part of the monthly transfer from the

20 General Revenue Fund in accordance with Section 8a of the

21 State Finance Act.

22 As soon as possible after the first day of each month, upon

23 certification of the Department of Revenue, the Comptroller

24 shall order transferred and the Treasurer shall transfer from

25 the General Revenue Fund to the Motor Fuel Tax Fund an amount

26 equal to 1.7% of 80% of the net revenue realized under this Act

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1 for the second preceding month. Beginning April 1, 2000, this

2 transfer is no longer required and shall not be made.

3 Net revenue realized for a month shall be the revenue

4 collected by the State pursuant to this Act, less the amount

5 paid out during that month as refunds to taxpayers for

6 overpayment of liability.

7 (Source: P.A. 101-10, Article 15, Section 15-15, eff. 6-5-19;

8 101-10, Article 25, Section 25-110, eff. 6-5-19; 101-27, eff.

9 6-25-19; 101-32, eff. 6-28-19; 101-604, eff. 12-13-19;

10 101-636, eff. 6-10-20; 102-700, eff. 4-19-22.)

11 Section 20. The Service Occupation Tax Act is amended by

12 changing Sections 3-10 and 9 as follows:

13 (35 ILCS 115/3-10) (from Ch. 120, par. 439.103-10)

14 Sec. 3-10. Rate of tax. Unless otherwise provided in this

15 Section, the tax imposed by this Act is at the rate of 6.25% of

16 the "selling price", as defined in Section 2 of the Service Use

17 Tax Act, of the tangible personal property. For the purpose of

18 computing this tax, in no event shall the "selling price" be

19 less than the cost price to the serviceman of the tangible

20 personal property transferred. The selling price of each item

21 of tangible personal property transferred as an incident of a

22 sale of service may be shown as a distinct and separate item on

23 the serviceman's billing to the service customer. If the

24 selling price is not so shown, the selling price of the

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1 tangible personal property is deemed to be 50% of the

2 serviceman's entire billing to the service customer. When,

3 however, a serviceman contracts to design, develop, and

4 produce special order machinery or equipment, the tax imposed

5 by this Act shall be based on the serviceman's cost price of

6 the tangible personal property transferred incident to the

7 completion of the contract.

8 Beginning on July 1, 2000 and through December 31, 2000,

9 with respect to motor fuel, as defined in Section 1.1 of the

10 Motor Fuel Tax Law, and gasohol, as defined in Section 3-40 of

11 the Use Tax Act, the tax is imposed at the rate of 1.25%.

12 With respect to gasohol, as defined in the Use Tax Act, the

13 tax imposed by this Act shall apply to (i) 70% of the cost

14 price of property transferred as an incident to the sale of

15 service on or after January 1, 1990, and before July 1, 2003,

16 (ii) 80% of the selling price of property transferred as an

17 incident to the sale of service on or after July 1, 2003 and on

18 or before July 1, 2017, and (iii) 100% of the cost price

19 thereafter. If, at any time, however, the tax under this Act on

20 sales of gasohol, as defined in the Use Tax Act, is imposed at

21 the rate of 1.25%, then the tax imposed by this Act applies to

22 100% of the proceeds of sales of gasohol made during that time.

23 With respect to majority blended ethanol fuel, as defined

24 in the Use Tax Act, the tax imposed by this Act does not apply

25 to the selling price of property transferred as an incident to

26 the sale of service on or after July 1, 2003 and on or before

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1 December 31, 2023 but applies to 100% of the selling price

2 thereafter.

3 With respect to biodiesel blends, as defined in the Use

4 Tax Act, with no less than 1% and no more than 10% biodiesel,

5 the tax imposed by this Act applies to (i) 80% of the selling

6 price of property transferred as an incident to the sale of

7 service on or after July 1, 2003 and on or before December 31,

8 2018 and (ii) 100% of the proceeds of the selling price after

9 December 31, 2018 and before January 1, 2024. On and after

10 January 1, 2024 and on or before December 31, 2030, the

11 taxation of biodiesel, renewable diesel, and biodiesel blends

12 shall be as provided in Section 3-5.1 of the Use Tax Act. If,

13 at any time, however, the tax under this Act on sales of

14 biodiesel blends, as defined in the Use Tax Act, with no less

15 than 1% and no more than 10% biodiesel is imposed at the rate

16 of 1.25%, then the tax imposed by this Act applies to 100% of

17 the proceeds of sales of biodiesel blends with no less than 1%

18 and no more than 10% biodiesel made during that time.

19 With respect to biodiesel, as defined in the Use Tax Act,

20 and biodiesel blends, as defined in the Use Tax Act, with more

21 than 10% but no more than 99% biodiesel material, the tax

22 imposed by this Act does not apply to the proceeds of the

23 selling price of property transferred as an incident to the

24 sale of service on or after July 1, 2003 and on or before

25 December 31, 2023. On and after January 1, 2024 and on or

26 before December 31, 2030, the taxation of biodiesel, renewable

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1 diesel, and biodiesel blends shall be as provided in Section

2 3-5.1 of the Use Tax Act.

3 At the election of any registered serviceman made for each

4 fiscal year, sales of service in which the aggregate annual

5 cost price of tangible personal property transferred as an

6 incident to the sales of service is less than 35%, or 75% in

7 the case of servicemen transferring prescription drugs or

8 servicemen engaged in graphic arts production, of the

9 aggregate annual total gross receipts from all sales of

10 service, the tax imposed by this Act shall be based on the

11 serviceman's cost price of the tangible personal property

12 transferred incident to the sale of those services.

13 Until July 1, 2022 and beginning again on July 1, 2023, the

14 tax shall be imposed at the rate of 1% on food prepared for

15 immediate consumption and transferred incident to a sale of

16 service subject to this Act or the Service Use Tax Act by an

17 entity licensed under the Hospital Licensing Act, the Nursing

18 Home Care Act, the Assisted Living and Shared Housing Act, the

19 ID/DD Community Care Act, the MC/DD Act, the Specialized

20 Mental Health Rehabilitation Act of 2013, or the Child Care

21 Act of 1969, or an entity that holds a permit issued pursuant

22 to the Life Care Facilities Act. Until July 1, 2022 and

23 beginning again on July 1, 2023, the tax shall also be imposed

24 at the rate of 1% on food for human consumption that is to be

25 consumed off the premises where it is sold (other than

26 alcoholic beverages, food consisting of or infused with adult

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1 use cannabis, soft drinks, and food that has been prepared for

2 immediate consumption and is not otherwise included in this

3 paragraph).

4 Beginning on July 1, 2022 and until July 1, 2023, the tax

5 shall be imposed at the rate of 0% 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. Beginning July 1, 2022 and

14 until July 1, 2023, the tax shall also be imposed at the rate

15 of 0% on food for human consumption that is to be consumed off

16 the premises where it is sold (other than alcoholic beverages,

17 food consisting of or infused with adult use cannabis, soft

18 drinks, and food that has been prepared for immediate

19 consumption and is not otherwise included in this paragraph).

20 The tax shall also be imposed at the rate of 1% on

21 prescription and nonprescription medicines, drugs, medical

22 appliances, products classified as Class III medical devices

23 by the United States Food and Drug Administration that are

24 used for cancer treatment pursuant to a prescription, as well

25 as any accessories and components related to those devices,

26 modifications to a motor vehicle for the purpose of rendering

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1 it usable by a person with a disability, and insulin, blood

2 sugar testing materials, syringes, and needles used by human

3 diabetics. For the purposes of this Section, until September

4 1, 2009: the term "soft drinks" means any complete, finished,

5 ready-to-use, non-alcoholic drink, whether carbonated or not,

6 including, but not limited to, soda water, cola, fruit juice,

7 vegetable juice, carbonated water, and all other preparations

8 commonly known as soft drinks of whatever kind or description

9 that are contained in any closed or sealed can, carton, or

10 container, regardless of size; but "soft drinks" does not

11 include coffee, tea, non-carbonated water, infant formula,

12 milk or milk products as defined in the Grade A Pasteurized

13 Milk and Milk Products Act, or drinks containing 50% or more

14 natural fruit or vegetable juice.

15 Notwithstanding any other provisions of this Act,

16 beginning September 1, 2009, "soft drinks" means non-alcoholic

17 beverages that contain natural or artificial sweeteners. "Soft

18 drinks" does ~~do~~ not include beverages that contain milk or

19 milk products, soy, rice or similar milk substitutes, or

20 greater than 50% of vegetable or fruit juice by volume.

21 Until August 1, 2009, and notwithstanding any other

22 provisions of this Act, "food for human consumption that is to

23 be consumed off the premises where it is sold" includes all

24 food sold through a vending machine, except soft drinks and

25 food products that are dispensed hot from a vending machine,

26 regardless of the location of the vending machine. Beginning

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1 August 1, 2009, and notwithstanding any other provisions of

2 this Act, "food for human consumption that is to be consumed

3 off the premises where it is sold" includes all food sold

4 through a vending machine, except soft drinks, candy, and food

5 products that are dispensed hot from a vending machine,

6 regardless of the location of the vending machine.

7 Notwithstanding any other provisions of this Act,

8 beginning September 1, 2009, "food for human consumption that

9 is to be consumed off the premises where it is sold" does not

10 include candy. For purposes of this Section, "candy" means a

11 preparation of sugar, honey, or other natural or artificial

12 sweeteners in combination with chocolate, fruits, nuts or

13 other ingredients or flavorings in the form of bars, drops, or

14 pieces. "Candy" does not include any preparation that contains

15 flour or requires refrigeration.

16 Notwithstanding any other provisions of this Act,

17 beginning September 1, 2009, "nonprescription medicines and

18 drugs" does not include grooming and hygiene products. For

19 purposes of this Section, "grooming and hygiene products"

20 includes, but is not limited to, soaps and cleaning solutions,

21 shampoo, toothpaste, mouthwash, antiperspirants, and sun tan

22 lotions and screens, unless those products are available by

23 prescription only, regardless of whether the products meet the

24 definition of "over-the-counter-drugs". For the purposes of

25 this paragraph, "over-the-counter-drug" means a drug for human

26 use that contains a label that identifies the product as a drug

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1 as required by 21 CFR ~~C.F.R. �~~ 201.66. The

2 "over-the-counter-drug" label includes:

3 (A) a ~~A~~ "Drug Facts" panel; or

4 (B) a ~~A~~ statement of the "active ingredient(s)" with a

5 list of those ingredients contained in the compound,

6 substance or preparation.

7 Beginning on January 1, 2014 (the effective date of Public

8 Act 98-122), "prescription and nonprescription medicines and

9 drugs" includes medical cannabis purchased from a registered

10 dispensing organization under the Compassionate Use of Medical

11 Cannabis Program Act.

12 As used in this Section, "adult use cannabis" means

13 cannabis subject to tax under the Cannabis Cultivation

14 Privilege Tax Law and the Cannabis Purchaser Excise Tax Law

15 and does not include cannabis subject to tax under the

16 Compassionate Use of Medical Cannabis Program Act.

17 Beginning July 1, 2023, in addition to all other rates of

18 tax imposed under this Act, a surcharge of 1% is imposed on the

19 selling price of firearm ammunition. "Firearm ammunition" has

20 the meaning given to that term under Section 31A-0.1 of the

21 Criminal Code of 2012.

22 (Source: P.A. 101-363, eff. 8-9-19; 101-593, eff. 12-4-19;

23 102-4, eff. 4-27-21; 102-16, eff. 6-17-21; 102-700, Article

24 20, Section 20-15, eff. 4-19-22; 102-700, Article 60, Section

25 60-25, eff. 4-19-22; revised 6-1-22.)

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1 (35 ILCS 115/9) (from Ch. 120, par. 439.109)

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 at the time when he is required to file his return

5 for the period during which such tax was collectible, less a

6 discount of 2.1% prior to January 1, 1990, and 1.75% on and

7 after January 1, 1990, or $5 per calendar year, whichever is

8 greater, which is allowed to reimburse the serviceman for

9 expenses incurred in collecting the tax, keeping records,

10 preparing and filing returns, remitting the tax and supplying

11 data to the Department on request. When determining the

12 discount allowed under this Section, servicemen shall include

13 the amount of tax that would have been due at the 1% rate but

14 for the 0% rate imposed under this amendatory Act of the 102nd

15 General Assembly. The discount under this Section is not

16 allowed for the 1.25% portion of taxes paid on aviation fuel

17 that is subject to the revenue use requirements of 49 U.S.C.

18 47107(b) and 49 U.S.C. 47133. The discount allowed under this

19 Section is allowed only for returns that are filed in the

20 manner required by this Act. The Department may disallow the

21 discount for servicemen whose certificate of registration is

22 revoked at the time the return is filed, but only if the

23 Department's decision to revoke the certificate of

24 registration has become final.

25 Where such tangible personal property is sold under a

26 conditional sales contract, or under any other form of sale

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1 wherein the payment of the principal sum, or a part thereof, is

2 extended beyond the close of the period for which the return is

3 filed, the serviceman, in collecting the tax may collect, for

4 each tax return period, only the tax applicable to the part of

5 the selling price actually received during such tax return

6 period.

7 Except as provided hereinafter in this Section, on or

8 before the twentieth day of each calendar month, such

9 serviceman shall file a return for the preceding calendar

10 month in accordance with reasonable rules and regulations to

11 be promulgated by the Department of Revenue. Such return shall

12 be filed on a form prescribed by the Department and shall

13 contain such information as the Department may reasonably

14 require. The return shall include the gross receipts which

15 were received during the preceding calendar month or quarter

16 on the following items upon which tax would have been due but

17 for the 0% rate imposed under this amendatory Act of the 102nd

18 General Assembly: (i) food for human consumption that is to be

19 consumed off the premises where it is sold (other than

20 alcoholic beverages, food consisting of or infused with adult

21 use cannabis, soft drinks, and food that has been prepared for

22 immediate consumption); and (ii) food prepared for immediate

23 consumption and transferred incident to a sale of service

24 subject to this Act or the Service Use Tax Act by an entity

25 licensed under the Hospital Licensing Act, the Nursing Home

26 Care Act, the Assisted Living and Shared Housing Act, the

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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. The return shall also include

5 the amount of tax that would have been due on the items listed

6 in the previous sentence but for the 0% rate imposed under this

7 amendatory Act of the 102nd General Assembly.

8 On and after January 1, 2018, with respect to servicemen

9 whose annual gross receipts average $20,000 or more, all

10 returns required to be filed pursuant to this Act shall be

11 filed electronically. Servicemen who demonstrate that they do

12 not have access to the Internet or demonstrate hardship in

13 filing electronically may petition the Department to waive the

14 electronic filing requirement.

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 two months of each calendar quarter, on or before

21 the twentieth day of the following calendar month, stating:

22 1. The name of the seller;

23 2. The address of the principal place of business from

24 which he engages in business as a serviceman in this

25 State;

26 3. The total amount of taxable receipts received by

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1 him during the preceding calendar month, including

2 receipts from charge and time sales, but less all

3 deductions allowed by law;

4 4. The amount of credit provided in Section 2d of this

5 Act;

6 5. The amount of tax due;

7 5-5. The signature of the taxpayer; and

8 6. Such other reasonable information as the Department

9 may require.

10 Each serviceman required or authorized to collect the tax

11 herein imposed on aviation fuel acquired as an incident to the

12 purchase of a service in this State during the preceding

13 calendar month shall, instead of reporting and paying tax as

14 otherwise required by this Section, report and pay such tax on

15 a separate aviation fuel tax return. The requirements related

16 to the return shall be as otherwise provided in this Section.

17 Notwithstanding any other provisions of this Act to the

18 contrary, servicemen transferring aviation fuel incident to

19 sales of service shall file all aviation fuel tax returns and

20 shall make all aviation fuel tax payments by electronic means

21 in the manner and form required by the Department. For

22 purposes of this Section, "aviation fuel" means jet fuel and

23 aviation gasoline.

24 If a taxpayer fails to sign a return within 30 days after

25 the proper notice and demand for signature by the Department,

26 the return shall be considered valid and any amount shown to be

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1 due on the return shall be deemed assessed.

2 Notwithstanding any other provision of this Act to the

3 contrary, servicemen subject to tax on cannabis shall file all

4 cannabis tax returns and shall make all cannabis tax payments

5 by electronic means in the manner and form required by the

6 Department.

7 Prior to October 1, 2003, and on and after September 1,

8 2004 a serviceman may accept a Manufacturer's Purchase Credit

9 certification from a purchaser in satisfaction of Service Use

10 Tax as provided in Section 3-70 of the Service Use Tax Act if

11 the purchaser provides the appropriate documentation as

12 required by Section 3-70 of the Service Use Tax Act. A

13 Manufacturer's Purchase Credit certification, accepted prior

14 to October 1, 2003 or on or after September 1, 2004 by a

15 serviceman as provided in Section 3-70 of the Service Use Tax

16 Act, may be used by that serviceman to satisfy Service

17 Occupation Tax liability in the amount claimed in the

18 certification, not to exceed 6.25% of the receipts subject to

19 tax from a qualifying purchase. A Manufacturer's Purchase

20 Credit reported on any original or amended return filed under

21 this Act after October 20, 2003 for reporting periods prior to

22 September 1, 2004 shall be disallowed. Manufacturer's Purchase

23 Credit reported on annual returns due on or after January 1,

24 2005 will be disallowed for periods prior to September 1,

25 2004. No Manufacturer's Purchase Credit may be used after

26 September 30, 2003 through August 31, 2004 to satisfy any tax

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1 liability imposed under this Act, including any audit

2 liability.

3 If the serviceman's average monthly tax liability to the

4 Department does not exceed $200, the Department may authorize

5 his returns to be filed on a quarter annual basis, with the

6 return for January, February and March of a given year being

7 due by April 20 of such year; with the return for April, May

8 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's average monthly tax liability to the

14 Department does not exceed $50, the Department may authorize

15 his returns to be filed on an annual basis, with the return for

16 a given year being due by January 20 of the following year.

17 Such quarter annual and annual returns, as to form and

18 substance, shall be subject to the same requirements as

19 monthly returns.

20 Notwithstanding any other provision in this Act concerning

21 the time within which a serviceman may file his return, in the

22 case of any serviceman who ceases to engage in a kind of

23 business which makes him responsible for filing returns under

24 this Act, such serviceman shall file a final return under this

25 Act with the Department not more than 1 month after

26 discontinuing such business.

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